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Crown Castle International Reports Fourth Quarter And Full Year 2012 Results; Raises 2013 Outlook

Stocks in this article: CCI

Our measures of Adjusted EBITDA, FFO and AFFO may not be comparable to similarly titled measures of other companies, including other companies in the tower sector or those reported by REITs. FFO and AFFO presented are not necessarily indicative of the operating results that would have been achieved had we converted to a REIT, nor are they necessarily indicative of future financial position or operating results. Our FFO and AFFO may not be comparable to those reported in accordance with National Association of Real Estate Investment Trusts, including as a result of our adjustment to the income tax provision to reflect our estimate of the cash taxes had we been a REIT. 

Adjusted EBITDA, FFO and AFFO are presented as additional information because management believes these measures are useful indicators of the financial performance of our core businesses. In addition, Adjusted EBITDA is a measure of current financial performance used in our debt covenant calculations. 

Adjusted EBITDA. Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges, acquisition and integration costs, depreciation, amortization and accretion, amortization of prepaid lease purchase price adjustments, interest expense and amortization of deferred financing costs, gains (losses) on retirement of long-term obligations, net gain (loss) on interest rate swaps, impairment of available-for-sale securities, interest income, other income (expense), benefit (provision) for income taxes, cumulative effect of change in accounting principle, income (loss) from discontinued operations and stock-based compensation expense. 

Funds from Operations. Crown Castle defines Funds from Operations as net income plus adjusted tax provision plus real estate depreciation, amortization and accretion. 

Adjusted Funds from Operations. Crown Castle defines Adjusted Funds from Operations as Funds from Operations before straight-line revenue, straight-line expense, stock-based compensation expense, non-real estate related depreciation, amortization and accretion, amortization of deferred financing costs, debt discounts, and interest rate swaps, other (income) and expense, gain (loss) on retirement of long-term obligations, net gain (loss) on interest rate swaps, acquisition and integration costs, asset write-down charges and less capital improvement capital expenditures and corporate capital expenditures. 

Sustaining capital expenditures. Crown Castle defines sustaining capital expenditures as either (1) corporate related capital improvements, such as information technology equipment and office equipment or (2) capital improvements to tower sites that enable our customers' ongoing quiet enjoyment of the tower.

The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures. The components in these tables may not sum to the total due to rounding.

Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures:
         
Adjusted EBITDA for the quarters and years ended December 31, 2012 and 2011 is computed as follows:
         
  For the Three Months Ended  For the Twelve Months Ended
  December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
(in millions)        
Net income (loss) (9.6) 48.9 200.9 171.5
Adjustments to increase (decrease) net income (loss):        
Asset write-down charges 7.3 8.6 15.5 22.3
Acquisition and integration costs 6.2 1.6 18.3 3.3
Depreciation, amortization and accretion 175.8 139.0 622.6 553.0
Amortization of prepaid leases purchase price adjustments 3.9 14.2
Interest expense and amortization of deferred financing costs 173.7 127.3 601.0 507.6
Gains (losses) on retirement of long-term obligations 117.4 132.0
Interest income (3.5) (0.1) (4.6) (0.7)
Other income (expense) 1.4 0.1 5.4 5.6
Benefit (provision) for income taxes (70.6) 0.6 (100.1) 8.3
Stock-based compensation expense 12.0 9.2 47.4 36.0
Adjusted EBITDA 413.9 335.2 1,552.7 1,306.9
         
Adjusted EBITDA for the quarter ending March 31, 2013 and the year ending December 31, 2013 is forecasted as follows:
     
  Q1 2013 Full Year 2013
(in millions) Outlook Outlook
Net income (loss) $(17) to $23 $58 to $159
Adjustments to increase (decrease) net income (loss):    
Asset write-down charges $4 to $6 $15 to $25
Acquisition and integration costs $0 to $4 $10 to $20
Depreciation, amortization and accretion $188 to $193 $750 to $770
Amortization of prepaid leases purchase price adjustments $3 to $5 $15 to $17
Interest expense and amortization of deferred financing costs (a) $161 to $166 $598 to $608
Gains (losses) on retirement of long-term obligations $36 to $36 $36 to $36
Interest income $(2) to $0 $(3) to $(1)
Other income (expense) $0 to $2 $5 to $7
Benefit (provision) for income taxes $6 to $17 $80 to $105
Stock-based compensation expense $9 to $11 $41 to $46
Adjusted EBITDA $423 to $428 $1,691 to $1,706
(a) See the reconciliation of "Components of interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense, including the impact of the retirement of the 9% senior notes and 7.75% secured notes.
 
FFO and AFFO for the quarter ending March 31, 2013 and the year ending December 31, 2013 are forecasted as follows:
     
  Q1 2013 Full Year 2013
(in millions) Outlook Outlook
Net income $(17) to $23 $58 to $159
Adjusted tax provision (a) $6 to $10 $80 to $90
Real estate related depreciation, amortization and accretion $184 to $187 $731 to $746
FFO $195 to $200 $928 to $943
     
FFO (from above) $195 to $200 $928 to $943
Straight-line revenue $(47) to $(42) $(162) to $(147)
Straight-line expense $19 to $24 $76 to $91
Stock-based compensation expense $9 to $11 $41 to $46
Non-real estate related depreciation, amortization and accretion $4 to $6 $19 to $24
Amortization of deferred financing costs, debt discounts and interest rate swaps $35 to $39 $95 to $106
Other (income) expense $0 to $2 $5 to $7
Gains (losses) on retirement of long-term obligations $36 to $36 $36 to $36
Acquisition and integration costs $0 to $4 $10 to $20
Asset write-down charges $4 to $6 $15 to $25
Capital improvement capital expenditures $(6) to $(4) $(19) to $(17)
Corporate capital expenditures $(5) to $(3) $(13) to $(11)
AFFO $259 to $264 $1,067 to $1,082
Weighted-average common shares outstanding — diluted 293 293
AFFO per share $0.89 to $0.90 $3.65 to $3.70
     
(a) Adjusts the income tax provision to reflect our estimate of the cash taxes had we been a REIT, which predominately relates to foreign taxes paid. As a result, income tax expense is lower by the amount of the adjustment.
 
FFO and AFFO for the quarters and years ended December 31, 2012 and 2011 are computed as follows:
         
  For the Three Months Ended For the Twelve Months Ended
(in millions) December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
Net income $(9.6) $48.9 $200.9 $171.5
Adjusted tax provision (a) (72.6) (0.3) (106.7) 5.0
Real estate related depreciation, amortization and accretion 170.5 133.7 601.4 531.9
FFO $88.3 $182.4 $695.5 $708.3
Weighted-average common shares outstanding — diluted 292.5 282.9 291.3 285.9
FFO per share $0.30 $0.64 $2.39 $2.48
         
FFO (from above) 88.3 182.4 695.5 708.3
Straight-line revenue (28.6) (40.0) (175.5) (178.5)
Straight-line expense 16.1 9.5 54.1 39.0
Stock-based compensation expense 12.0 9.2 47.4 36.0
Non-real estate related depreciation, amortization and accretion 5.4 5.3 21.2 21.1
Amortization of deferred financing costs, debt discounts and interest rate swaps 35.7 25.7 109.3 102.9
Other (income) expense  1.4 0.1 5.4 5.6
Losses (gains) on retirement of long-term obligations 117.4 132.0
Acquisition and integration costs 6.2 1.6 18.3 3.3
Asset write-down charges 7.3 8.6 15.5 22.3
Capital improvement capital expenditures (10.9) (5.3) (21.6) (14.0)
Corporate capital expenditures (7.2) (4.0) (15.5) (9.4)
AFFO $243.0 $193.1 $886.1 $736.7
Weighted-average common shares outstanding — diluted 292.5 282.9 291.3 285.9
AFFO per share $0.83 $0.68 $3.04 $2.58
         
(a) Adjusts the income tax provision to reflect our estimate of the cash taxes had we been a REIT, which predominately relates to foreign taxes paid. As a result, income tax expense is lower by the amount of the adjustment.
 
Other Calculations:    
     
The components of interest expense and amortization of deferred financing costs for three months ended December 31, 2012 and December 31, 2011 are as follows:
     
  For the Three Months Ended
(in millions) December 31, 2012 December 31, 2011
Interest expense on debt obligations $138.0 $101.6
Amortization of deferred financing costs 7.9 3.8
Amortization of adjustments on long-term debt 11.3 4.2
Amortization of interest rate swaps (a) 16.3 17.9
Other 0.1 (0.2)
Interest expense and amortization of deferred financing costs $173.7 $127.3
     
(a) Relates to the amortization of interest rate swaps, all of which has been cash settled in prior periods.
 
The components of interest expense and amortization of deferred financing costs for the quarter ending March 31, 2013 and the year ending December 31, 2013 are forecasted as follows:
     
  Q1 2013 Full Year 2013
(in millions) Outlook Outlook
Interest expense on debt obligations $126 to $128 $498 to $508
Amortization of deferred financing costs $9 to $10 $24 to $26
Amortization of adjustments on long-term debt $11 to $12 $8 to $10
Amortization of interest rate swaps (a) $15 to $17 $62 to $67
Other $0 to $0 $1 to $3
Interest expense and amortization of deferred financing costs (b) $161 to $166 $598 to $608
     
(a) Relates to the amortization of interest rate swaps, all of which has been cash settled in prior periods. 
(b) First quarter and full year 2013 is inclusive of approximately $16 million of non-cash expense related to the the 9% senior notes and the 7.75% secured notes that were retired in January 2013.
     
Debt balances and maturity dates as of December 31, 2012, pro forma for the aforementioned debt retirements, are as follows:
     
     
(in millions) Face Value Final Maturity
Revolver $1,253.0 January 2017
Term Loan A 481.3 January 2017
Term Loan B 1,584.0 January 2019
7.125% Senior Notes 500.0 November 2019
5.25% Senior Notes 1,650.0 January 2023
3.36% Senior Notes 1,500.0 2017/2023
Senior Secured Notes, Series 2009-1 (a) 198.5 Various
Senior Secured Tower Revenue Notes, Series 2010-1-2010-3 (b) 1,900.0 Various
Senior Secured Tower Revenue Notes, Series 2010-4-2010-6 (c) 1,550.0 Various
WCP Secured Wireless Site Contracts Revenue Notes, Series 2010-1 (d) 295.9 November 2040
Capital Leases and Other Obligations 92.6 Various
Total Debt $11,005.3  
Less: Cash and Cash Equivalents (e) $(109.5)  
Net Debt $10,895.8  
 
(a) The 2009 Securitized Notes consist of $128.5 million of principal as of December 31, 2012 that amortizes during the period beginning January 2010 and ending in 2019, and $70.0 million of principal that amortizes during the period beginning in 2019 and ending in 2029.
(b) The Senior Secured Tower Revenue Notes Series 2010-1, 2010-2 and 2010-3 have principal amounts of $300.0 million, $350.0 million, and $1,250.0 million with anticipated repayment dates of 2015, 2017, and 2020, respectively.
(c) The Senior Secured Tower Revenue Notes Series 2010-4, 2010-5 and 2010-6 have principal amounts of $250.0 million, $300.0 million and $1,000.0 million with anticipated repayment dates of 2015, 2017 and 2020, respectively.
(d) The WCP Secured Wireless Site Contracts Revenue Notes, Series 2010-1 ("WCP Securitized Notes") were assumed in connection with the WCP acquisition. If WCP Securitized Notes are not repaid in full by their anticipated repayment dates in 2015, the applicable interest rate increases by an additional approximately 5% per annum. If the WCP Securitized Notes are not repaid in full by their rapid amortization date of 2017, monthly principal payments commence. 
(e) Excludes restricted cash. 
 
Sustaining capital expenditures for the three months and years ended December 31, 2012 and 2011 are computed as follows:
         
  For the Three Months Ended For the Twelve Months Ended
(in millions) December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
Capital Expenditures $158.0 $82.8 $441.4 $347.9
Less: Land purchases 47.3 32.5 134.2 196.4
Less: Tower improvements and other 51.4 27.7 145.0 82.8
Less: Construction of wireless infrastructure 41.2 13.3 125.1 45.4
Sustaining capital expenditures (a) $18.1 $9.3 $37.1 $23.4
         
(a) Inclusive of corporate and capital improvement capital expenditures.  

Cautionary Language Regarding Forward-Looking Statements

This press release contains forward-looking statements and information that are based on our management's current expectations. Such statements include, but are not limited to, plans, projections, Outlook and estimates regarding (i) the contribution and impact of our financing activities and acquisitions, including the T-Mobile, NextG and Wireless Capital Partners transactions referenced herein on our financial and operational results, (ii) qualitative characteristics of the US wireless communications market, (iii) our role in the telecommunications industry, (iv) the contribution to AFFO, site rental revenue and Adjusted EBITDA of the T-Mobile transaction, (v) interest expense related to debt used to fund the T-Mobile transaction, (vi) cash flow, (vii) our investments and the potential benefits derived therefrom, (viii) our growth, (ix) currency exchange rates, (x) site rental revenues, (xi) site rental cost of operations, (xii) site rental gross margin, (xiii) Adjusted EBITDA, (xiv) interest expense and amortization of deferred financing costs, (xv) FFO, (xvi) AFFO, including on a per share basis, (xvii) net income (loss), including on a per share basis, (xviii) our common shares outstanding, and (xix) the utility of certain financial measures in analyzing our results. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and the following:

  • Our business depends on the demand for wireless communications and wireless infrastructure, and we may be adversely affected by any slowdown in such demand. Additionally, a reduction in carrier network investment may materially and adversely affect our business (including reducing demand for new tenant additions and network services).
  • A substantial portion of our revenues is derived from a small number of customers, and the loss, consolidation or financial instability of any of our limited number of customers may materially decrease revenues and reduce demand for our wireless infrastructure and network services.
  • Our substantial level of indebtedness could adversely affect our ability to react to changes in our business, and the terms of our debt instruments limit our ability to take a number of actions that our management might otherwise believe to be in our best interests. In addition, if we fail to comply with our covenants, our debt could be accelerated.
  • We have a substantial amount of indebtedness. In the event we do not repay or refinance such indebtedness, we could face substantial liquidity issues and might be required to issue equity securities or securities convertible into equity securities, or sell some of our assets to meet our debt payment obligations.
  • Sales or issuances of a substantial number of shares of our common stock may adversely affect the market price of our common stock.
  • As a result of competition in our industry, including from some competitors with significantly more resources or less debt than we have, we may find it more difficult to achieve favorable rental rates on our new or renewing customer contracts.
  • The business model for our small cell operations contains differences from our traditional site rental business, resulting in different operational risks. If we do not successfully operate that business model or identify and manage those operational risks, such operations may produce results that are less than anticipated.
  • New technologies may significantly reduce demand for our wireless infrastructure and negatively impact our revenues.
  • New wireless technologies may not deploy or be adopted by customers as rapidly or in the manner projected.
  • If we fail to retain rights to the land under our wireless infrastructure, our business may be adversely affected.
  • Our network services business has historically experienced significant volatility in demand, which reduces the predictability of our results.
  • The expansion and development of our business, including through acquisitions, increased product offerings, and other strategic growth opportunities, may cause disruptions in our business, which may have an adverse effect on our business, operations and financial results.
  • If we fail to comply with laws and regulations which regulate our business and which may change at any time, we may be fined or even lose our right to conduct some of our business.
  • If radio frequency emissions from wireless handsets or equipment on our wireless infrastructure are demonstrated to cause negative health effects, potential future claims could adversely affect our operations, costs and revenues.
  • Certain provisions of our certificate of incorporation, bylaws and operative agreements and domestic and international competition laws may make it more difficult for a third party to acquire control of us or for us to acquire control of a third party, even if such a change in control would be beneficial to our stockholders.
  • We may be adversely affected by our exposure to changes in foreign currency exchange rates relating to our operations in Australia.

Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the SEC.

CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(in thousands)
     
     
  December 31, 2012 December 31, 2011
ASSETS    
Current assets:    
Cash and cash equivalents $441,364 $80,120
Restricted cash 575,938 252,368
Receivables, net 192,833 77,258
Deferred income tax assets 193,420 85,385
Prepaid expenses, deferred site rental receivables and other current assets, net 177,769 104,021
Total current assets 1,581,324 599,152
Deferred site rental receivables, net 864,819 621,103
Property and equipment, net 6,917,531 4,861,227
Goodwill 3,119,957 2,035,390
Other intangible assets, net 2,941,696 2,178,182
Long-term prepaid rent, deferred financing costs and other assets, net 629,468 250,042
  $16,054,795 $10,545,096
     
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable and other accrued liabilities $308,675 $202,351
Deferred revenues 241,127 167,238
Current maturities of debt and other obligations 688,056 32,517
Total current liabilities 1,237,858 402,106
Debt and other long-term obligations 10,923,186 6,853,182
Deferred income tax liabilities 31,916 97,562
Below market tenant leases, deferred ground lease payable and other liabilities 910,571 500,350
Total liabilities 13,103,531 7,853,200
Commitments and contingencies    
Redeemable convertible preferred stock 305,032
CCIC stockholders' equity 2,938,746 2,386,245
Noncontrolling interest 12,518 619
Total equity 2,951,264 2,386,864
  $16,054,795 $10,545,096
     
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED
(in thousands)
         
  Three Months Ended December 31, Twelve Months Ended December 31,
  2012 2011 2012 2011
Net revenues:        
Site rental $570,313 $471,331 $2,124,190 $1,853,550
Network services and other 103,774 48,140 308,490 179,179
Total net revenues 674,087 519,471 2,432,680 2,032,729
Operating expenses:        
         
Costs of operations (exclusive of depreciation, amortization and accretion):        
Site rental 149,483 120,081 539,239 481,398
Network services and other 67,938 28,774 189,750 106,987
General and administrative 58,631 44,568 212,572 173,493
Asset write-down charges 7,298 8,589 15,548 22,285
Acquisition and integration costs 6,186 1,649 18,298 3,310
Depreciation, amortization and accretion 175,843 138,964 622,592 552,951
Total operating expenses 465,379 342,625 1,597,999 1,340,424
Operating income (loss) 208,708 176,846 834,681 692,305
Interest expense and amortization of deferred financing costs (173,683) (127,299) (601,044) (507,587)
Gains (losses) on retirement of long-term obligations (117,388) (131,974)
Net gain (loss) on interest rate swaps
Interest income 3,529 123 4,556 666
Other income (expense) (1,433) (147) (5,392) (5,577)
Income (loss) before income taxes (80,267) 49,523 100,827 179,807
Benefit (provision) for income taxes 70,623 (584) 100,061 (8,347)
Net income (loss) (9,644) 48,939 200,888 171,460
Less: Net income (loss) attributable to the noncontrolling interest 9,861 28 12,304 383
Net income (loss) attributable to CCIC stockholders (19,505) 48,911 188,584 171,077
Dividends on preferred stock and losses on purchases of preferred stock (4,996) (2,629) (22,940)
Net income (loss) attributable to CCIC stockholders after deduction of dividends on preferred stock and losses on purchases of preferred stock $(19,505) $43,915 $185,955 $148,137
         
Net income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock and losses on purchases of preferred stock, per common share:  
Basic $(0.07) $0.16 $0.64 $0.52
Diluted $(0.07) $0.16 $0.64 $0.52
         
Weighted average common shares outstanding (in thousands):        
Basic 290,816 280,975 289,285 283,821
Diluted 290,816 282,894 291,270 285,947
         
CROWN CASTLE INTERNATIONAL CORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(in thousands)
     
  Twelve Months Ended 
  December 31,
  2012 2011
Cash flows from operating activities:    
Net income (loss) $200,888 $171,460
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:  
Depreciation, amortization and accretion 622,592 552,951
Gains (losses) on retirement of long-term obligations 131,974
Amortization of deferred financing costs and other non-cash interest 109,350 102,943
Stock-based compensation expense 41,944 32,610
Asset write-down charges 15,548 22,285
Deferred income tax benefit (provision) (110,374) 4,626
Income (expense) from forward-starting interest rate swaps
Other adjustments, net 612 4,122
Changes in assets and liabilities, excluding the effects of acquisitions:  
Increase (decrease) in liabilities 119,709 12,310
Decrease (increase) in assets (359,686) (259,853)
Net cash provided by (used for) operating activities 772,557 643,454
     
Cash flows from investing activities:    
Payments for acquisition of businesses, net of cash acquired (3,759,475) (37,551)
Capital expenditures (441,383) (347,942)
Other investing activities, net 1,262 (14,372)
Net cash provided by (used for) investing activities (4,199,596) (399,865)
     
Cash flows from financing activities:    
Proceeds from issuance of long-term debt 5,250,000
Proceeds from issuance of capital stock 258 1,557
Principal payments on debt and other long-term obligations (80,818) (35,345)
Purchases and redemptions of long-term debt (1,978,709)
Purchases of capital stock (36,043) (303,414)
Purchases of preferred stock (15,002)
Borrowings under revolving credit agreement 1,253,000 283,000
Payments under revolving credit agreement (251,000) (189,000)
Payments for financing costs (78,641)
Net decrease (increase) in restricted cash (288,763) 1,979
Dividends on preferred stock (2,481) (19,487)
Net cash provided by (used for) financing activities 3,786,803 (275,712)
     
Effect of exchange rate changes on cash 1,480 (288)
Net increase (decrease) in cash and cash equivalents 361,244 (32,411)
Cash and cash equivalents at beginning of period 80,120 112,531
Cash and cash equivalents at end of period $441,364 $80,120
Supplemental disclosure of cash flow information:    
Interest paid $504,494 $404,443
Income taxes paid 3,375 4,340
     
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
dollars in millions                        
                         
  Quarter Ended
  3/31/2012 6/30/2012 9/30/2012 12/31/2012
  CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC
Revenues                        
Site Rental $468.1 $29.4 $497.5 $487.8 $29.8 $517.6 $507.2 $31.5 $538.8 $537.9 $32.4 $570.3
Services 47.0 7.2 54.2 62.0 5.9 67.9 78.3 4.3 82.6 98.0 5.8 103.8
Total Revenues 515.1 36.7 551.7 549.8 35.7 585.5 585.5 35.8 621.3 635.9 38.2 674.1
                         
Operating Expenses                        
Site Rental 113.9 8.9 122.9 123.1 8.5 131.6 126.1 9.3 135.3 140.6 8.9 149.5
Services 26.8 4.7 31.5 36.8 3.4 40.3 46.6 3.4 50.0 63.5 4.4 67.9
Total Operating Expenses 140.7 13.6 154.4 159.9 11.9 171.8 172.7 12.7 185.3 204.1 13.3 217.4
                         
General & Administrative 43.7 7.3 51.0 41.5 5.5 47.1 50.5 5.4 55.9 49.3 9.4 58.6
                         
Add: Stock-Based Compensation 9.0 2.1 11.2 8.1 8.0 16.3 (0.1) 16.2 8.4 3.6 12.0
Add: Amortization of prepaid lease purchase price adjustments 2.5 2.5 3.9 3.9 3.9 3.9 3.9 3.9
Adjusted EBITDA $342.3 $17.8 $360.1 $360.3 $18.2 $378.5 $382.6 $17.6 $400.2 $394.8 $19.1 $413.9
                         
                         
  Quarter Ended
  3/31/2012 6/30/2012 9/30/2012 12/31/2012
  CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC
Gross Margins:                        
Site Rental 76% 70% 75% 75% 71% 75% 75% 71% 75% 74% 73% 74%
Services 43% 35% 42% 41% 42% 41% 40% 20% 39% 35% 24% 35%
                         
Adjusted EBITDA 66% 49% 65% 66% 51% 65% 65% 49% 64% 62% 50% 61%
 
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP Financial Measure:
dollars in millions        
         
  Quarter Ended
  3/31/2012 6/30/2012 9/30/2012 12/31/2012
Net income (loss) $50.3 $117.1 $43.2 $(9.6)
Adjustments to increase (decrease) net income (loss):      
Asset write-down charges 3.0 3.6 1.6 7.3
Acquisition and integration costs 1.7 7.5 2.9 6.2
Depreciation, amortization and accretion 139.4 152.5 154.9 175.8
Amortization of prepaid leases purchase price adjustment 2.5 3.9 3.9 3.9
Interest expense, amortization of deferred financing costs 137.5 144.9 144.9 173.7
Gains (losses) on retirement of long-term obligations 7.1 7.5 117.4
Interest income (0.4) (0.4) (0.3) (3.5)
Other income (expense) 1.1 2.2 0.6 1.4
Benefit (provision) for income taxes 6.7 (68.4) 32.3 (70.6)
Stock-based compensation 11.2 8.0 16.2 12.0
Adjusted EBITDA $360.1 $378.5 $400.2 $413.9
         
Note: Components may not sum to total due to rounding.
       
CROWN CASTLE INTERNATIONAL CORP.      
Fact Sheet Q4 2011 to Q4 2012        
dollars in millions        
           
  Quarter Ended
  12/31/2011   12/31/2012   % Change
CCUSA          
Site Rental Revenues $443.8   $537.9   21%
Ending Towers (b)(d) 22,185   29,833   34%
           
CCAL          
Site Rental Revenues $27.6   $32.4   17%
Ending Towers (b) 1,598   1,712   7%
           
Total CCIC        
Site Rental Revenues $471.3   $570.3   21%
Ending Towers (b)(d) 23,783   31,545   33%
           
Ending Cash and Cash Equivalents (c) $80.1 * $109.5 *  
Total Face Value of Debt (c) $6,958.3   $11,005.3    
Net Debt (c) $6,878.2   $10,895.8    
           
Net Leverage Ratios:        
Net Debt / Adjusted EBITDA (a) 5.1X   6.3X (e)  
           
Last Quarter Annualized Adjusted EBITDA $1,340.9   $1,717.8 (e)  
           
*Excludes Restricted Cash
(a) Based on Face Values.
(b) Exclusive of DAS.
(c) Amounts are after giving effect to the retirement of the 9% senior notes and the 7.75% secured notes in January 2013.
(d) Impacted by the November 30, 2012 acquisition of the T-Mobile towers.
(e) Pro forma for the T-Mobile towers acquired November 30, 2012.
Note: Components may not sum to total due to rounding.
CONTACTS: Jay Brown, CFO
          Fiona McKone, VP - Corporate Finance
          Crown Castle International Corp.
          713-570-3050

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