Communications Sales & Leasing, Inc. Reports 2016 Third Quarter Results

  • Revenues of $200.2 Million For the Quarter; Net Loss of $0.03 Per Diluted Common Share
  • Reported AFFO Per Diluted Common Share of $0.65 For the Quarter
  • Announced $65 Million Acquisition of Portfolio of 359 Wireless Towers
  • Closed Acquisition of Tower Cloud
  • Successfully Repriced $2.1 Billion of Term Loans
  • Increased 2016 Full Year Outlook

LITTLE ROCK, Ark., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Communications Sales & Leasing, Inc. ("CS&L" or the "Company") (Nasdaq:CSAL) today announced its results for the third quarter of 2016.

THIRD QUARTER RESULTS

Revenues for the quarter ended September 30, 2016 were $200.2 million.  Net loss and Adjusted EBITDA was $2.3 million and $175.7 million, respectively, for the same period.  Net loss attributable to common shares was $4.1 million, or ($0.03) per diluted share, for the period.  Adjusted Funds From Operations ("AFFO") attributable to common shares was $99.7 million, or $0.65 per diluted common share.  Normalized FFO ("NFFO") attributable to common shares, which excludes transaction related costs, was $94.0 million, or $0.61 per diluted common share.

Uniti Fiber contributed $25.2 million of revenues and $9.3 million of Adjusted EBITDA for the third quarter of 2016.  Uniti Fiber's results include the operations of Tower Cloud, Inc. ("Tower Cloud") for the month of September following its acquisition on August 31, 2016, and the operations of PEG Bandwidth ("PEG") following its acquisition on May 2, 2016.

INVESTMENT ACTIVITIES

NMS Acquisition

The Company also announced today that it entered into a definitive agreement to acquire privately-held Network Management Holdings LTD ("NMS").  NMS currently owns and operates 359 wireless communications towers in Latin America with an additional 114 build to suit tower sites under development.  The NMS portfolio spans three Latin America countries with 313 towers in Mexico, 55 in Nicaragua, and 105 in Colombia.  The entire portfolio, when fully completed, is expected to generate approximately $7.9 million of annual revenue, including pass through costs, and $4.4 million of annual tower cash flow, as defined in the purchase agreement.  The initial consideration for the 359 wireless towers currently in operation is expected to be approximately $65 million.  Under the terms of the purchase agreement, the Company will acquire the towers under development when construction is completed.  The Company intends to initially fund the transaction through borrowings under its revolving credit facility.

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