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Crown Castle(CCI) - 2024 Q3 - Quarterly Report
CCICrown Castle(CCI)2024-10-30 20:05
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Revenue and Income - Site rental revenues represented 96% of the consolidated net revenues for Q3 2024, with 67% from the Towers segment and 33% from the Fiber segment[86]. - Net income increased by 38million,or1438 million, or 14%, to 303 million for the third quarter of 2024 compared to 265millionintheprioryear[115].−FortheninemonthsendedSeptember30,2024,netincomewas265 million in the prior year[115]. - For the nine months ended September 30, 2024, net income was 865 million, a decrease of 21.4% from 1.1billioninthesameperiodof2023[131].−Siterentalrevenuesincreasedby1.1 billion in the same period of 2023[131]. - Site rental revenues increased by 16 million, or 1%, to 1,593millionforthethreemonthsendedSeptember30,2024,comparedtothesameperiodin2023[101].−FortheninemonthsendedSeptember30,2024,totalsiterentalrevenuesdecreasedby1,593 million for the three months ended September 30, 2024, compared to the same period in 2023[101]. - For the nine months ended September 30, 2024, total site rental revenues decreased by 168 million, or 3%, to 4,761millioncomparedtothesameperiodin2023[119].AdjustedEBITDAandExpenses−AdjustedEBITDAroseby4,761 million compared to the same period in 2023[119]. Adjusted EBITDA and Expenses - Adjusted EBITDA rose by 28 million, or 3%, to 1,075millionforthethirdquarterof2024[116].−AdjustedEBITDAdecreasedby1,075 million for the third quarter of 2024[116]. - Adjusted EBITDA decreased by 222 million, or 7%, from the first nine months of 2023 to the first nine months of 2024[132]. - Selling, general and administrative expenses decreased by 23million,or1323 million, or 13%, to 153 million for the third quarter of 2024[108]. - Selling, general and administrative expenses decreased by 41million,or741 million, or 7%, to 540 million for the first nine months of 2024 compared to 581millioninthesameperiodof2023[124].CapitalExpendituresandInvestments−Thecompanyhaddiscretionarycapitalexpendituresof581 million in the same period of 2023[124]. Capital Expenditures and Investments - The company had discretionary capital expenditures of 874 million for the nine months ended September 30, 2024, primarily for constructing new communications infrastructure[96]. - Discretionary capital expenditures for the first nine months of 2024 totaled 836million,comparedto836 million, compared to 961 million in the same period of 2023[147]. - The company expects sustaining capital expenditures to remain at approximately 1% of net revenues for the full year 2024, consistent with historical levels[96]. - The company plans to continue investing in small cells and fiber construction as part of its discretionary investments strategy[135]. Debt and Financial Position - As of September 30, 2024, the company's outstanding debt had a weighted-average interest rate of 3.9% and a weighted-average maturity of approximately seven years[166]. - As of October 28, 2024, the company had 1.1billionoutstandingunderitsCommercialPaperProgram[152].−Thecompanyhas1.1 billion outstanding under its Commercial Paper Program[152]. - The company has 6.96 billion in undrawn availability under its 2016 Revolver as of October 28, 2024[151]. - The company targets a leverage ratio of approximately five times Adjusted EBITDA[136]. Future Expectations and Guidance - The company expects to realize 105millioninlaborandfacilitiescostsavingsin2024duetothe2023RestructuringPlan[96].−Thecompanyexpectscommonstockdividendsoverthenext12monthstototalatleast105 million in labor and facilities cost savings in 2024 due to the 2023 Restructuring Plan[96]. - The company expects common stock dividends over the next 12 months to total at least 6.26 per share, or approximately 2.7billion[94].−Thecompanyanticipatesayear−over−yearreductioninsiterentalrevenuesduetopaymentsreceivedfromT−Mobilein2023comparedto2024relatedtocanceledSprintleases[96].−Thecompanyexpectstoincuranassetwrite−downchargeof2.7 billion[94]. - The company anticipates a year-over-year reduction in site rental revenues due to payments received from T-Mobile in 2023 compared to 2024 related to canceled Sprint leases[96]. - The company expects to incur an asset write-down charge of 125 to 150millioninQ42024duetothecancellationofapproximately7,000greenfieldsmallcellnodes[96].OperationalPerformance−Netcashprovidedbyoperatingactivitieswas150 million in Q4 2024 due to the cancellation of approximately 7,000 greenfield small cell nodes[96]. Operational Performance - Net cash provided by operating activities was 2.1 billion for the nine months ended September 30, 2024[94]. - Cash provided by operating activities was 2.1billionforthefirstninemonthsof2024,downby2.1 billion for the first nine months of 2024, down by 192 million, or 9%, compared to the same period in 2023[143]. - Net cash used for investing activities was 947million,adecreaseof947 million, a decrease of 208 million, or 18%, from the first nine months of 2023[144]. - Approximately three-fourths of site rental revenues for the nine months ended September 30, 2024, were derived from T-Mobile, AT&T, and Verizon Wireless[94]. Restructuring and Charges - Restructuring charges for the third quarter of 2024 were 48million,adecreaseof48 million, a decrease of 24 million, or 33%, from the prior year[112]. - Restructuring charges for the first nine months of 2024 were 104million,anincreaseof104 million, an increase of 32 million, or 44%, compared to the same period in 2023[128]. - The company incurred asset write-down charges of 15millionforthethreemonthsendedSeptember30,2024,comparedto15 million for the three months ended September 30, 2024, compared to 8 million in the same period of 2023[161].