Crown Castle Inc. · NYSE:CCI

Crown Castle — Crown Castle International — Q1 2014 Earnings Presentation

14 slides from Crown Castle's earnings presentation, Apr 24, 2014

  1. Slide 1: First Quarter 2014 Earnings Conference Call

    First Quarter 2014 Earnings Conference Call April 24, 2014

  2. Slide 2: Cautionary Information

    Cautionary Information This presentation contains forward-looking statements and information that are based on management’s current expectations. Such statements may include projections, Outlook and estimates regarding (i) demand for our sites and services, (ii) leasing activity, including the impac

  3. Slide 3: Executive Summary

    Executive Summary  Exceeded Q1 2014 Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA and AFFO  Raised full-year 2014 Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA, and AFFO  Began operating as a REIT, effective January 1, 2014, and paid first

  4. Slide 4: Q1 2014 Highlights

    Q1 2014 Highlights Site Rental Revenue Growth ($ in millions) $747  21% year-over-year growth in GAAP $51 site rental revenues Organic Site Rental Revenue $1 growth before non-renewals: ~8% $615 $100  8% Organic Site Rental Revenue $27 growth before non-renewals, driven $59 $20 $8 primarily by new

  5. Slide 5: Q1 2014 Highlights (continued)

    Q1 2014 Highlights (continued) ($ in millions, except per share amounts)  Results include impact from AT&T Site Rental Gross Margin Adjusted EBITDA towers and a one-time $5 million $519 $527 benefit related to a lease contract $438 $441 termination payment from Revol Wireless ↑ ~19% ↑ ~20%  AFFO d

  6. Slide 6: Investment and Financing Summary

    Investment and Financing Summary Q1 2014 Capital Deployment  Opportunistically refinanced $2.6 billion of debt ($ in millions)  Extended the maturities on $1.8 billion of term loan B by 2 years Share Purchases $21.4  Closed on 8-year $850 million senior notes with coupon of 4.875%, proceeds of wh

  7. Slide 7: Full Year 2014 Outlook

    Full Year 2014 Outlook ($ in millions, except per share amounts) Site Rental Revenues Site Rental Gross Margin $2,504 $1,779 $2,983 $1,585 $2,052 $2,124 to to $2,993 $2,062 2012 2013 2014E 2012 2013 2014E Reported Results Outlook Issued on April 23, 2014 Adjusted EBITDA AFFO per share (1)(2) $1,794

  8. Slide 8: Full Year 2014 Outlook (continued)

    Full Year 2014 Outlook (continued) Midpoint of 2014 Outlook Site Rental Revenue Growth  19% year-over-year projected ($ in millions) growth in GAAP site rental $2,988 revenues Organic Site Rental Revenue growth before non-renewals: ~9% ~<1% $188 $2,504 ~5% ~17%  9% Organic Site Rental Revenue ~4%

  9. Slide 9: Full Year 2014 Outlook (continued)

    Full Year 2014 Outlook (continued) AFFO (1) ($ in millions) Outlook Previously Issued on January 22, 2014 Current Outlook Issued on April 23, 2014 ↑ $28 million $259 at the Midpoint $180 to $81 to $274 ~$470 $96 $1,496 ~$500 to $1,318 $1,346 to $1,511 to to $600 $1,333 $1,361 $425 to $525 2014 AFFO

  10. Slide 10: Proven Track Record of Execution

    Proven Track Record of Execution ($ in millions) Global Signal NextG and T-Mobile AT&T Merger Transactions Transaction 2007 – 2011 $2,988 Site Rental Revenue CAGR: 10% Site Rental Gross Margin CAGR: 13% $2,504 Incremental Margin: 93% $2,124 2001 – 2006 Site Rental Revenue CAGR: 13% $1,854 Site Renta

  11. Slide 11: Significant Opportunity to Create Shareholder Returns Through Continued Execution

    Significant Opportunity to Create Shareholder Returns Through Continued Execution Summary of Portfolio Metrics by Vintage Yield (1) LQA Site Rental Revenue and % of Towers by Vintage Tenancy per Tower ($ in thousands) 15% $94 Greater than 10 years 28% 2.8 $55 7% Less than 2.0 10 years 72% ~4% - 5% I

  12. Slide 12: Compelling U.S. Market Provides Greatest Risk-Adjusted Returns

    Compelling U.S. Market Provides Greatest Risk-Adjusted Returns 2013E Monthly ARPU(1) Forecasted U.S. Mobile Data Usage(2) (petabyte per month) 2,700 $52.25 $33.95 ↑ 52% CAGR $10.82 207 338 Emerging Markets Developed Markets U.S. 2012 2013 2018E Projected U.S. Wireless Carrier Capital Expenditures ($

  13. Slide 13: Appendix: Non-GAAP Measures

    Appendix: Non-GAAP Measures This presentation includes presentations or discussions of Adjusted EBITDA, FFO, AFFO, Organic Site Rental Revenue, and Site Rental Revenue, as Adjusted, which are non-GAAP financial measures. These non-GAAP financial measures are not intended as an alternative measure of

  14. Slide 14: Adjusted EBITDA

    Adjusted EBITDA Adjusted EBITDA for the years ended December 31, 2013 and 2012 is computed as follows: For the Twelve Months Ended December 31, 2013 December 31, 2012 (in millions) Net income (loss) $ 93.9 $ 200.9 Adjustments to increase (decrease) net income (loss): Asset write-down charges 14.9 15

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