Crown Castle(CCI)2024-10-30 20:05Revenue 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 $38 million, or 14%, to $303 million for the third quarter of 2024 compared to $265 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 $1.1 billion in the same period of 2023[131]. - Site rental revenues increased by $16 million, or 1%, to $1,593 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 $4,761 million compared to the same period in 2023[119]. Adjusted EBITDA and Expenses - Adjusted EBITDA rose by $28 million, or 3%, to $1,075 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 $23 million, or 13%, to $153 million for the third quarter of 2024[108]. - Selling, general and administrative expenses decreased by $41 million, or 7%, to $540 million for the first nine months of 2024 compared to $581 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 $836 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 $1.1 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 $105 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 $2.7 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 $150 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 $2.1 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 $947 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 $48 million, a decrease of $24 million, or 33%, from the prior year[112]. - Restructuring charges for the first nine months of 2024 were $104 million, an increase of $32 million, or 44%, compared to the same period in 2023[128]. - The company incurred asset write-down charges of $15 million for the three months ended September 30, 2024, compared to $8 million in the same period of 2023[161].