Summary
Crown Castle Inc. (CCI) reported its financial results for the second quarter and the first six months ended June 30, 2011. The company demonstrated significant revenue growth, driven primarily by its site rental business, which accounted for 91% of net revenues in both periods. For the six months ended June 30, 2011, net revenues increased by 11% year-over-year, reaching $999.4 million, with site rental revenues growing by 12% to $913.3 million. This growth was attributed to new tenant additions, contract renewals, and escalations, supported by ongoing wireless industry expansion and increased smartphone adoption. The company also reported a substantial improvement in profitability. For the first six months of 2011, net income attributable to CCIC stockholders was $70.9 million, a significant turnaround from a net loss of $216.8 million in the same period of the prior year. This improvement was largely due to the absence of large one-time charges related to debt refinancing and interest rate swaps that impacted the prior year's results, combined with solid operational performance and growth in the core business. Adjusted EBITDA also showed strong growth, increasing by 15% for the first six months of 2011 to $639.2 million. Financially, Crown Castle maintained a strong liquidity position with $108.1 million in cash and cash equivalents and $262.0 million in undrawn revolver availability as of June 30, 2011. The company continued its strategy of returning value to shareholders through share repurchases, investing $192.6 million in purchasing its common stock during the first half of the year. While the potential merger of AT&T and T-Mobile poses a risk, the company's diversified customer base and long-term contracts provide a degree of stability.
Financial Highlights
47 data points| Revenue | $500.34M |
| SG&A Expenses | $41.26M |
| Operating Expenses | $333.19M |
| Operating Income | $167.14M |
| Interest Expense | $100.80M |
| Net Income | $30.87M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 285.28M |
| Shares Outstanding (Diluted) | 287.03M |
Key Highlights
- 1Net revenues increased by 11% to $999.4 million for the six months ended June 30, 2011, driven by a 12% increase in site rental revenues.
- 2Net income attributable to CCIC stockholders for the six months ended June 30, 2011, was $70.9 million, a significant improvement from a net loss of $216.8 million in the prior year.
- 3Adjusted EBITDA grew by 15% to $639.2 million for the six months ended June 30, 2011, reflecting strong operational performance.
- 4The company repurchased approximately 4.6 million shares of its common stock for $192.6 million during the first half of 2011.
- 5Crown Castle maintained a healthy liquidity position with $108.1 million in cash and $262.0 million in undrawn revolver availability as of June 30, 2011.
- 6The weighted-average remaining term of tenant contracts is approximately nine years, representing over $17 billion in expected future cash inflows.
- 7The potential AT&T/T-Mobile merger presents a risk due to customer concentration, as these two carriers accounted for 34% of net revenues in the first half of 2011.