8-KFinancial EventsRegulation FDExhibits & Filings

CROWN CASTLE INC. 8-K Report, Financial Restatement (Feb 15, 2005)

Filed February 15, 2005For Securities:CCI

Summary

Crown Castle International Corp. (CCI) has filed an 8-K report on February 15, 2005, disclosing that its previously issued financial statements for the fiscal years ended December 31, 2002 and 2003, and the first three fiscal quarters of 2004 will be restated. This restatement is due to errors identified in lease accounting practices, particularly concerning tenant leases, ground leases, and depreciation. The company's Audit Committee, executive officers, and independent accountants concluded that the restatement is necessary following SEC guidance issued on February 7, 2005, regarding lease accounting. The company anticipates that the aggregate amount of these corrections will be material to its financial statements for the fiscal year ending December 31, 2004. Consequently, CCI will file amended reports to reflect these corrections accurately. Investors should no longer rely on the previously issued financial statements for the periods mentioned. Additionally, the 8-K notes a separate press release issued on February 15, 2005, providing an update to the company's outlook for the full year 2005, which is furnished as an exhibit.

Key Highlights

  • 1Crown Castle International Corp. (CCI) to restate financial statements for FY 2002, FY 2003, and the first three quarters of 2004.
  • 2Restatement is due to errors in lease accounting, specifically related to tenant leases, ground leases, and depreciation.
  • 3The need for restatement was identified following recent SEC guidance on lease accounting.
  • 4The company anticipates the corrections will be material to the fiscal year 2004 financial statements.
  • 5Investors are advised that previously issued financial statements for the affected periods should no longer be relied upon.
  • 6An updated outlook for the full year 2005 was provided in a separate press release furnished with the 8-K.

Frequently Asked Questions

Crown Castle's financial statements for the fiscal years ended December 31, 2002 and 2003, and the first three fiscal quarters of 2004 need to be restated due to errors in their lease accounting practices. This includes adjustments to tenant leases, ground leases, and depreciation, prompted by new SEC guidance on lease accounting.

The 8-K filing indicates that the company will amend its filings with the SEC to include restated financial statements. Specific timelines for these amended filings are not provided in this report, but investors should anticipate them in subsequent filings.

The company states that the aggregate amount of expected corrections is expected to be material to the financial statements for the fiscal year ended December 31, 2004. This means the impact on the company's reported financial position and performance is significant.

In addition to the financial statement restatement, the 8-K also discloses that on February 15, 2005, the company issued a press release updating its outlook for the full year 2005. This press release is provided as an exhibit to the 8-K.