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Crown Castle(CCI) - 2024 Q1 - Quarterly Results
CCICrown Castle(CCI)2024-04-17 20:18

Financial Performance Metrics - Net Debt to Last Quarter Annualized Adjusted EBITDA is a key metric for assessing leverage, but should be viewed as a supplement to GAAP measures[1] - Consolidated Return on Invested Capital and Segment Cash Yield on Invested Capital are important for evaluating asset performance and capital allocation efficiency[1] - The company emphasizes the importance of understanding non-GAAP metrics as supplements to GAAP measures for a comprehensive view of financial performance[1] - The company maintains a BBB+ long-term issuer default rating from Fitch[34] - The company has a market capitalization of 45,985millionandafirmvalueof45,985 million and a firm value of 69,262 million[80] - The company maintains a total net leverage ratio of 5.3x, below the covenant requirement of ≤ 6.50x[87] - The debt service coverage ratio for the 2015 Tower Revenue Notes is reported at 17.8x, significantly above the required minimum of > 1.75x[87] - The weighted average interest rate reflects a reduction in the interest rate spread due to meeting specified sustainability targets[65] - The company reported a cash yield on invested capital of 12.8% for Q1 2024, up from 12.2% in Q1 2023[121] Revenue Projections - Site rental billings for the prior year totaled 5,675million,withcoreleasingactivityprojectedtocontributebetween5,675 million, with core leasing activity projected to contribute between 305 million and 335millionin2024[22]−Totalsiterentalrevenuesareexpectedtorangefrom335 million in 2024[22] - Total site rental revenues are expected to range from 6,347 million to 6,392millionforthefullyear2024,reflectingayear−over−yeardeclineof2.56,392 million for the full year 2024, reflecting a year-over-year decline of 2.5%[22] - Full Year 2024 site rental billings are projected to be between 5,740 million and 5,780million[40]−SiterentalrevenuesforFullYear2024areexpectedtorangefrom5,780 million[40] - Site rental revenues for Full Year 2024 are expected to range from 6,347 million to 6,392million[40]−Thecompanyanticipatesescalatorstocontributebetween6,392 million[40] - The company anticipates escalators to contribute between 95 million and 105milliontositerentalrevenuesin2024[22]−Projectedsiterentalrevenuesfortheremainingninemonthsof2024areestimatedat105 million to site rental revenues in 2024[22] - Projected site rental revenues for the remaining nine months of 2024 are estimated at 4,685 million[51] - Total site rental revenues for Q1 2024 were 1,588million,comparedto1,588 million, compared to 1,728 million in Q1 2023[71] - Total site rental revenues for Q1 2024 were 383million,a10.7383 million, a 10.7% increase compared to the prior year[108] - Total segment revenues for Q1 2024 were 1,641 million, a decline of 7.4% compared to 1,773millioninQ12023[167]AdjustedEBITDAandIncome−AdjustedEBITDAforFullYear2024isforecastedtobebetween1,773 million in Q1 2023[167] Adjusted EBITDA and Income - Adjusted EBITDA for Full Year 2024 is forecasted to be between 4,138 million and 4,188million[40]−AdjustedEBITDAforQ12024isprojectedat4,188 million[40] - Adjusted EBITDA for Q1 2024 is projected at 1,036 million, down from 1,076millioninQ42023[43]−ThecompanyexpectsadjustedEBITDAforthefullyear2024tobebetween1,076 million in Q4 2023[43] - The company expects adjusted EBITDA for the full year 2024 to be between 4,138 million and 4,188million[149]−NetincomeforQ12024was4,188 million[149] - Net income for Q1 2024 was 311 million, down from 418millioninQ12023,representingadecreaseof25.6418 million in Q1 2023, representing a decrease of 25.6%[137] - The company reported a basic net income per share of 0.72 for Q1 2024, compared to 0.97inQ12023,adeclineof25.80.97 in Q1 2023, a decline of 25.8%[137] Capital Expenditures - Total discretionary capital expenditures for Q1 2024 are expected to be 298 million, down from 329millioninQ42023[46]−CapitalexpendituresforQ12024were329 million in Q4 2023[46] - Capital expenditures for Q1 2024 were 320 million, a decrease from 341millioninQ12023[165]−Thecompanyanticipatessustainingcapitalexpenditurestobeintherangeof341 million in Q1 2023[165] - The company anticipates sustaining capital expenditures to be in the range of (85) million to (65)millionforfullyear2024[189]−TotalcapitalexpendituresforQ12024were(65) million for full year 2024[189] - Total capital expenditures for Q1 2024 were 273 million, with capital expenditures less prepaid rent additions at 217million[104]DebtandObligations−Totalsecureddebtamountsto217 million[104] Debt and Obligations - Total secured debt amounts to 1,775 million with a debt to LQA adjusted EBITDA ratio of 0.4x[80] - Total unsecured debt is reported at 21,800million,withanetdebtof21,800 million, with a net debt of 23,277 million and a net debt to adjusted EBITDA ratio of 5.6x[87] - Total debt and other obligations amount to 23,414millionasofMarch31,2024[190]−NetDebtstandsat23,414 million as of March 31, 2024[190] - Net Debt stands at 23,277 million after accounting for cash and cash equivalents[190] Operational Highlights - The company operates over 40,000 towers and approximately 115,000 small cells across the U.S.[31] - The strategy focuses on maximizing recurring site rental cash flows and returning cash to stockholders through dividends[32] - The company aims to invest in new communications infrastructure to generate future cash flow growth[32] - The number of towers increased to 40,023, with 28,304 leased and 11,719 owned[99] - The average number of tenants per tower is 2.5, with 40,000 towers in total[121] Sprint Cancellations Impact - Payments for Sprint cancellations are expected to decrease from (170)millionto(170) million to (160) million in 2024[22] - The company anticipates receiving approximately 3millioninpaymentsforSprintCancellationsrelatedtofibersolutionsinQ12024[42]−PaymentsforSprintCancellationsinQ12024amountedto44million,adecreasefrom106millioninthepreviousyear[72]−Thecompanyreceived3 million in payments for Sprint Cancellations related to fiber solutions in Q1 2024[42] - Payments for Sprint Cancellations in Q1 2024 amounted to 44 million, a decrease from 106 million in the previous year[72] - The company received 66 million in non-recurring payments associated with Sprint Cancellations in 2023, impacting future revenue projections[157] Non-Renewals and Organic Contributions - Non-renewals are projected to impact revenues negatively, with estimates ranging from (165)millionto(165) million to (145) million[22] - Organic Contribution to Site Rental Billings adjusted for Sprint Cancellations was 68 million, reflecting a year-over-year increase[71] - Organic contribution to site rental billings adjusted for the impact of Sprint cancellations was 34million,reflectingayear−over−yearchangeof(3.6)34 million, reflecting a year-over-year change of (3.6)%[108] - The company experienced a non-renewal rate of (29) for Q1 2024, consistent with previous quarters[108] Cash Flow and Liquidity - Net cash provided by operating activities was 599 million, slightly down from 606millioninQ12023[165]−Cashandcashequivalentsincreasedto606 million in Q1 2023[165] - Cash and cash equivalents increased to 125 million in Q1 2024 from 105millioninQ42023[161]−Cashandcashequivalentsattheendoftheperiodwere105 million in Q4 2023[161] - Cash and cash equivalents at the end of the period were 298 million, down from 388millionattheendofQ12023[165]−InterestpaidinQ12024was388 million at the end of Q1 2023[165] - Interest paid in Q1 2024 was 282 million, an increase from $249 million in Q1 2023[165]