8-KFinancial EventsRegulation FDExhibits & Filings

CROWN CASTLE INC. 8-K Report, Financial Restatement (Feb 13, 2006)

Filed February 13, 2006For Securities:CCI

Summary

Crown Castle International Corp. (CCI) has filed a Form 8-K on February 13, 2006, to announce that its previously issued financial statements for the years ended December 31, 2003 and 2004, and interim periods in 2004 and 2005, require restatement. This restatement is due to errors identified in the Company's lease accounting practices, stemming from a clarification of accounting literature by the SEC in February 2005. While the Company believes the impact on any single prior period is not material, the cumulative effect of these non-cash adjustments could be material to the fourth quarter of 2005 if treated as a single adjustment in that period. The Company anticipates that the aggregate non-cash adjustments related to periods prior to October 1, 2005, will result in an improvement to net income (loss) of approximately $20 million. The restated financial statements are expected to be included in CCI's Form 10-K for the year ended December 31, 2005, anticipated for filing in March 2006. Investors should note that this filing primarily addresses accounting corrections rather than significant operational changes.

Key Highlights

  • 1Crown Castle International Corp. is restating previously issued financial statements for 2003, 2004, and the first three quarters of 2005.
  • 2The restatement is related to errors in lease accounting practices and depreciation, following an SEC accounting clarification.
  • 3The company believes the errors are not material to any single previously issued financial statement.
  • 4The cumulative impact of these non-cash adjustments could be material to the fourth quarter of 2005 if treated as a single adjustment.
  • 5The aggregate non-cash adjustments for periods prior to October 1, 2005, are expected to improve net income by approximately $20 million.
  • 6Restated financial statements will be included in the Form 10-K for the year ended December 31, 2005, expected in March 2006.
  • 7This filing does not contain information about new operational events or material business changes.

Frequently Asked Questions

Crown Castle is restating its financial statements for 2003, 2004, and the first three quarters of 2005 due to errors identified in its lease accounting practices and depreciation. These errors were discovered following a clarification of accounting literature by the SEC in February 2005.

The company expects the cumulative non-cash adjustments for periods prior to October 1, 2005, to result in an improvement to net income (loss) of approximately $20 million. While the impact on any single prior period is not considered material, the cumulative effect could be material to the fourth quarter of 2005 if recorded as a single adjustment in that quarter.

The restated financial statements for the affected periods are expected to be included in Crown Castle's Form 10-K for the year ended December 31, 2005, which the company anticipates filing in March 2006. Unaudited quarterly financial statements for the first three quarters of 2005 will also be updated in subsequent Form 10-Q filings.

No, this filing indicates that the restatements are due to accounting errors related to lease accounting practices and depreciation, identified as a result of a change in accounting interpretation by the SEC. The company does not suggest these errors are related to fraud or new operational issues.