Crown Castle(CCI) - 2024 Q1 - Quarterly Results

Financial Performance Metrics - Net Debt to Last Quarter Annualized Adjusted EBITDA is a key metric for assessing leverage, but should be viewed as a supplement to GAAP measures[1] - Consolidated Return on Invested Capital and Segment Cash Yield on Invested Capital are important for evaluating asset performance and capital allocation efficiency[1] - The company emphasizes the importance of understanding non-GAAP metrics as supplements to GAAP measures for a comprehensive view of financial performance[1] - The company maintains a BBB+ long-term issuer default rating from Fitch[34] - The company has a market capitalization of $45,985 million and a firm value of $69,262 million[80] - The company maintains a total net leverage ratio of 5.3x, below the covenant requirement of ≤ 6.50x[87] - The debt service coverage ratio for the 2015 Tower Revenue Notes is reported at 17.8x, significantly above the required minimum of > 1.75x[87] - The weighted average interest rate reflects a reduction in the interest rate spread due to meeting specified sustainability targets[65] - The company reported a cash yield on invested capital of 12.8% for Q1 2024, up from 12.2% in Q1 2023[121] Revenue Projections - Site rental billings for the prior year totaled $5,675 million, with core leasing activity projected to contribute between $305 million and $335 million in 2024[22] - Total site rental revenues are expected to range from $6,347 million to $6,392 million for the full year 2024, reflecting a year-over-year decline of 2.5%[22] - Full Year 2024 site rental billings are projected to be between $5,740 million and $5,780 million[40] - Site rental revenues for Full Year 2024 are expected to range from $6,347 million to $6,392 million[40] - The company anticipates escalators to contribute between $95 million and $105 million to site rental revenues in 2024[22] - Projected site rental revenues for the remaining nine months of 2024 are estimated at $4,685 million[51] - Total site rental revenues for Q1 2024 were $1,588 million, compared to $1,728 million in Q1 2023[71] - Total site rental revenues for Q1 2024 were $383 million, a 10.7% increase compared to the prior year[108] - Total segment revenues for Q1 2024 were $1,641 million, a decline of 7.4% compared to $1,773 million in Q1 2023[167] Adjusted EBITDA and Income - Adjusted EBITDA for Full Year 2024 is forecasted to be between $4,138 million and $4,188 million[40] - Adjusted EBITDA for Q1 2024 is projected at $1,036 million, down from $1,076 million in Q4 2023[43] - The company expects adjusted EBITDA for the full year 2024 to be between $4,138 million and $4,188 million[149] - Net income for Q1 2024 was $311 million, down from $418 million in Q1 2023, representing a decrease of 25.6%[137] - The company reported a basic net income per share of $0.72 for Q1 2024, compared to $0.97 in Q1 2023, a decline of 25.8%[137] Capital Expenditures - Total discretionary capital expenditures for Q1 2024 are expected to be $298 million, down from $329 million in Q4 2023[46] - Capital expenditures for Q1 2024 were $320 million, a decrease from $341 million in Q1 2023[165] - The company anticipates sustaining capital expenditures to be in the range of $(85) million to $(65) million for full year 2024[189] - Total capital expenditures for Q1 2024 were $273 million, with capital expenditures less prepaid rent additions at $217 million[104] Debt and Obligations - Total secured debt amounts to $1,775 million with a debt to LQA adjusted EBITDA ratio of 0.4x[80] - Total unsecured debt is reported at $21,800 million, with a net debt of $23,277 million and a net debt to adjusted EBITDA ratio of 5.6x[87] - Total debt and other obligations amount to $23,414 million as of March 31, 2024[190] - Net Debt stands at $23,277 million after accounting for cash and cash equivalents[190] Operational Highlights - The company operates over 40,000 towers and approximately 115,000 small cells across the U.S.[31] - The strategy focuses on maximizing recurring site rental cash flows and returning cash to stockholders through dividends[32] - The company aims to invest in new communications infrastructure to generate future cash flow growth[32] - The number of towers increased to 40,023, with 28,304 leased and 11,719 owned[99] - The average number of tenants per tower is 2.5, with 40,000 towers in total[121] Sprint Cancellations Impact - Payments for Sprint cancellations are expected to decrease from $(170) million to $(160) million in 2024[22] - The company anticipates receiving approximately $3 million in payments for Sprint Cancellations related to fiber solutions in Q1 2024[42] - Payments for Sprint Cancellations in Q1 2024 amounted to 44 million, a decrease from 106 million in the previous year[72] - The company received $66 million in non-recurring payments associated with Sprint Cancellations in 2023, impacting future revenue projections[157] Non-Renewals and Organic Contributions - Non-renewals are projected to impact revenues negatively, with estimates ranging from $(165) million to $(145) million[22] - Organic Contribution to Site Rental Billings adjusted for Sprint Cancellations was 68 million, reflecting a year-over-year increase[71] - Organic contribution to site rental billings adjusted for the impact of Sprint cancellations was $34 million, reflecting a year-over-year change of (3.6)%[108] - The company experienced a non-renewal rate of (29) for Q1 2024, consistent with previous quarters[108] Cash Flow and Liquidity - Net cash provided by operating activities was $599 million, slightly down from $606 million in Q1 2023[165] - Cash and cash equivalents increased to $125 million in Q1 2024 from $105 million in Q4 2023[161] - Cash and cash equivalents at the end of the period were $298 million, down from $388 million at the end of Q1 2023[165] - Interest paid in Q1 2024 was $282 million, an increase from $249 million in Q1 2023[165]