Crown Castle International

Transcription

1 Crown Castle International NYSE: CCI 2007 Lehman Brothers Worldwide Wireless and Wireline Conference June 1, 2007 John Kelly CEO

2 Cautionary Information This presentation contains forward-looking statements that are based on management s current expectations. Such statements include, but are not limited to plans, projections and estimates regarding (i) our results of operations, (ii) growth potential of the U.S. market, (iii) wireless capital expenditures and network development, (iv) demand, factors driving demand and components of demand, (v) incremental return on equity capital from leasing growth, (vi) site rental revenue, (vii) site rental cost of operations, (viii) site rental gross margin, (ix) Adjusted EBITDA, (x) interest expense and amortization of deferred financing costs, (xi) sustaining capital expenditures, (xii) recurring cash flow (including recurring cash flow per share) and (xiii) net loss (including net loss per share). Such forward-looking statements are subject to numerous risks, uncertainties and assumptions, including prevailing market conditions and other factors. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the Securities and Exchange Commission. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation includes certain non-gaap financial measures, including recurring cash flow and Adjusted EBITDA. Tables reconciling such non-gaap financial measures are available at the end of this presentation and under the investor section of Crown Castle s website at This presentation includes historical financial results from Global Signal. These results are unaudited, and therefore, are subject to change. 2

3 Overview Section 1

4 Crown Castle International Real estate provider to the wireless industry 4

5 Attractive Business Fundamentals High incremental margins on new revenue Minimal sustaining capital expenditure requirements Approximately $21 million of expected annual sustaining capital expenditures Majority of outstanding debt rated investment grade and fixed rate coupon Long-term goal of 20% - 25% annual growth in recurring cash flow per share (1) Potential to achieve additional growth and value from complementary investments (1) Recurring cash flow per share is defined as Adjusted EBITDA less interest expense and amortization of deferred financing costs less sustaining capital expenditures divided by common shares outstanding 5

6 Consistent Results (1,2) ($ in millions) $269 $276 $283 $292 $307 $311 $316 $225 $189 $195 $165 $173 $180 $184 $196 $199 $202 $146 $126 $131 Q4:04 Q1:05 Q2:05 Q3:05 Q4:05 Q1:06 Q2:06 Q3:06 Q4:06 Q1:07 Site Rental Revenue Site Rental Gross Margin (1) Site Rental Gross margin is defined as site rental revenue less site rental cost of operations (2) Pro forma for GSL acquisition; these pro forma results are presented for illustrative purposes only and do not reflect what actual results would have been in historical periods. 6

7 Business Overview Q1 07 Tower Revenue US 95% Annualized = $1.3 billion AUS 5% Primary business is leasing tower space to wireless operators under long-term leases Recurring in nature and produces approximately 95% of revenue, 98% of gross margin and nearly 100% of cash flow Approximately 80% of recurring revenue from investment-grade rated tenants Secondary service business Non-recurring in nature, primarily related to the installation of new tenants on towers Minimal cash flow 7

8 U.S. Tower Footprint Over 22,000 U.S. Towers Significant Presence in 91 of the Top 100 BTA s (1) (1) Basic Trading Areas as defined by Rand McNally & Co and as used by the FCC to determine service areas for PCS wireless licenses 8

9 The Leading U.S. Tower Operator 72% of towers in the top 100 BTA s Top 100 BTA s represent 74% of US POPs Higher proportion of expected carrier capex spending Other Top ,000 U.S. Wireless Towers 20,000 Over 3,100 more towers in the top 100 BTA s than nearest competitor 66% with Verizon, AT&T (formerly Cingular) or Sprint as the anchor tenant Top 50 % of Towers Top 50 BTA s 5,500 (1) CCI AMT SBAC 55% 47% 27% (2) (1) Towers based on public information for AMT as of January 10, 2007 Citigroup presentation (2) Towers based on public information for SBAC as of Q Top 100 BTA s 72% 66% 49% 9

10 High-Quality Revenues Diversified, high-quality revenues 88% (1) wireless telephony Highest Exposure to Leading US Wireless Carriers (2) Big 4 Site Rental Revenue Per Tower (3) ($ in thousands) 80% (1) investment grade revenues $40.5 $36.4 $33.3 CCI AMT SBA (4) (1) Run-rate site rental revenue based on licenses as of April 30, 2007 (2) Verizon, AT&T (formerly Cingular), T-Mobile, Sprint (3) Revenue based on Q results and total wireless towers (4) Information only available for Sprint, AT&T (formerly Cingular), and Verizon Big 4 as a % of Site 75% 59% 62% Rental Revenue 10

11 Opportunity For Growth Drivers of Future Site Demand Carrier focus on improving network quality Subscriber growth Increasing usage (voice MOU, data) Wireline replacement Next generation network builds AWS auctions Sprint 4G WiMax builds Crown Castle is Best Positioned Most towers in the top 50 and top 100 BTA s Portfolio comprised primarily of acquired towers from Verizon, AT&T (formerly Cingular), Sprint and T-Mobile Strong relationships with Metro PCS, Leap, ClearWire and other emerging carriers Significant opportunity for increased lease up on acquired towers Leverage Crown Castle s proprietary leasing demand tools and industryleading customer service 11

12 Significant Wireless Network Spending Estimated Wireless Capital Expenditures $ in billions Growth in MOUs drives the need for additional sites $28 $27 $27 $27 Decreases in equipment costs allow for more deployed sites with similar levels of capital expenditures Improved network quality reduces subscriber churn 2007E 2008E 2009E 2010E Source: Goldman Sachs Research estimates 12

13 US Market Opportunities Mobile Penetration (%) (1) US market offers significant 2010 E 87% growth potential: Large population % Relatively low wireless penetration Estimated annual wireless network MOUs (2,3) In billions (CAGR = 21%) High expected growth in wireless network MOUs 2010 E 3, ,797 Source: Goldman Sachs research estimates (1)TIA pulse online (2) Numbers represent estimates of big 4 wireless carriers (VZW, AT&T (formerly Cingular), Sprint, T-Mobile) (3) 2006 is full year ending December 31, 2006; source is CTIA research 13

14 Large Investments at Spectrum Auction Translates to Potential Revenue Growth The deployment of the additional spectrum from Auction 66 is expected to drive additional leasing on wireless towers. Total Investment Footprint Expansion (1) New Broadband Strategy Capacity/Coverage Improvements for existing 3G platforms T-Mobile (2) $4.2 billion x Verizon Wireless $2.8 billion x Sprint w/ Cable Consortium $2.4 billion x MetroPCS $1.4 billion x AT&T (formerly Cingular) $1.3 billion Leap Wireless $1.0 billion x x Source: Goldman Sachs Research January 3, 2007 (1) The carriers plan to use a significant portion of the acquired spectrum to continue their build-out strategy which is focused on unlimited calling plans in dense urban areas. (2) T-Mobile plans to use the spectrum won for 3G deployment throughout its footprint coupled with deployment already underway. 14

15 CCIsites CCIsites is a web-based tool that stores the key information on our towers Includes: Tenant leases Ground leases Regulatory information Normal Real Estate Information RF signal strength by carrier Demographic data Site readiness Competitive structures CCI Advantage 15

16 Capital Allocation and Structure Section 2

17 Significant Share Purchases ($ in millions) CCI Total recurring cash flow 03 to Q1 07 (3) SBAC $149 $572 AMT $1,321 Crown Castle has invested 3.6x of its recurring cash flow in share purchases over the last four years at an average price of $24.32 per share Share Purchases 03 to Q1 07 (3) 29.3 mm shares 3.2 mm shares 83.8 mm shares SBAC $91 AMT $1,039 CCI $2,039 (1,2) Strong growth in Adjusted EBITDA combined with maintaining approximately 7x debt leverage has created significant capacity for investment (1) Includes purchases of 4% Convertible Notes and 8 1/4 % Convertible Preferred Stock (2) Includes purchase of 17.7 million shares on 1/26/2007 using $600 million in cash (3) Total recurring cash flow and share purchases from 2003 to Q

18 Best Positioned to Capture Future Value from Leasing Growth Common Shares per Tower (1) (in thousands) Equity Capital per Tower (1) ($ in thousands) $404 $730 $552 CCI AMT SBA Incremental Cash Flow/ Share Impact of the addition of one tenant per tower (circa $18k of lease revenue per tower) (2) CCI AMT SBA Incremental Return on Equity Capital $1.52 $0.96 $ % 2.5% 3.3% (1) Based on shares outstanding as of March 31, 2007; closing share prices as of 5/7/2007 (2) Impact assumes 100% incremental margin on additional tenant 18

19 Optimized Capital Structure Debt Comparison with Peers ($ in billions) 81% of Crown Castle s debt is rated investment Investment Grade Rated Debt $6.0 $4.8 $3.5 $1.6 grade 90% of Crown Castle s debt is fixed rate debt 90% of debt outstanding is not exposed to interest rate fluctuations until at least January 2015 Crown Castle s approach to effectively utilizing its balance sheet for growth CCI AMT SBA Net Debt / Adj. EBITDA (1) 8.8x 3.7x 6.8x Average Interest Rate 5.9% (2) 6.0% (2) 5.9% (3) Total Debt/ Enterprise 37% 18% 35% (3) Value` opportunities and share repurchases remains unchanged (1) Annualized Q1 2007E (2) Annualized Q interest expense / Q total debt (AMT); annualized Q2 2007E interest expense / Q total debt (CCI) (3) Excludes $350 million convertible notes at 0.375% interest rate issued on March 26, 2007; average interest rate is solely based on CMBS Issuances. 19

20 Recurring Cash Flow Per Share Since 2001: Site rental revenues increased 98% (1) Site rental gross margin increased 140% (1) Average interest coupon of 5.9% compared to 9% in Q Focus on recurring cash flow per share Long-term targeted growth rate of 20% to 25% Recurring Cash Flow per Share (2) $1.23 $1.31 $0.86 $0.32 ($0.11) ($0.31) ($0.37) E (1) CCI pre GSL (2) Years 2001 to 2006 based on CCI results pre- GSL; 2007 based on Outlook issued on 5/2/

21 Impact of Additional Leverage to 2007 RCF per Share $ % Growth $0.31 Impact of $1.15 B borrowings to pay cash consideration for GSL acquisition and purchase of 17.7 mm shares $(0.23) $1.31 Committed to decisions that management believes will maximize long-term recurring cash flow per share Near-term dilution in favor of enhanced long-term growth rates Decisions based on long-term outlook for site rental revenue and Adjusted EBITDA growth 2006 RCF/Share RCF/Share growth from operations RCF/Share impact from additional borrowings 2007E RCF/Share (1) * Based on average shares outstanding (1) Based on midpoint of Outlook issued on 5/2/

22 Components of Future RCF per Share 2006 RCF per share of $ Measured Demand 1.25 tenants / tower of measured need Estimated incremental $1.70 per share of RCF Anticipated Future Demand MOU growth Subscriber growth Data usage growth Wireline replacement Invested Capital Tower acquisitions Tower builds Stock purchases Land purchases = Future RCF per Share 22

23 2007 Outlook $ in millions Q Full Year 2007 Site rental revenue $316 to 321 $1,265 to 1,280 Site rental cost of operations (1) $115 to 120 $440 to 450 Site rental gross margin $199 to 204 $820 to 830 Adjusted EBITDA $175 to 180 $735 to 750 Interest expense and amortization of deferred financing costs $88 to 90 $346 to 351 Sustaining capital expenditures $6 to 8 $19 to 23 Recurring cash flow $80 to 85 $365 to 375 (1) Exclusive of depreciation, amortization and accretion 23

24 CCI s Compelling Business Model 1. Growth based on wireless network expansion 2. Long-term contracted revenue with contracted escalations 3. High credit quality of revenue stream 4. Long-term control of assets 5. Relatively fixed operating costs 6. Minimal required CapEx 7. Significant internally generated capital Highly efficient capital structure converts growth and investment into recurring cash flow per share 24

25 Non-GAAP Financial Measures On January 12, 2007, Crown Castle completed the merger ("Global Signal Merger") of Global Signal Inc. ("Global Signal") with and into a wholly-owned subsidiary of ours. Unless indicated otherwise, the term "Crown Castle" refers to Crown Castle International Corp. and it subsidiaries, including the former subsidiaries of Global Signal ("Global Signal Entities") following the completion of the Global Signal Merger. The results of Global Signal Entities were included in our consolidated statement of operations and comprehensive income (loss) from January 12, NON-GAAP FINANCIAL MEASURES Certain of Crown Castle's financial releases and broadcast conference calls include presentations or discussions of recurring cash flow and Adjusted EBITDA, which are non-gaap financial measures. Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges, integration costs (inclusive of stock-based compensation charges), depreciation, amortization and accretion, losses on purchases and redemptions of debt, interest and other income (expense), interest expense and amortization of deferred financing costs, benefit (provision) for income taxes, minority interests, cumulative effect of change in accounting principle, income (loss) from discontinued operations and stock-based compensation charges. Adjusted EBITDA is not intended as an alternative measure of cash flow from operations or operating results (as determined in accordance with Generally Accepted Accounting Principles (GAAP)). Crown Castle defines recurring cash flow to be Adjusted EBITDA, less interest expense and less sustaining capital expenditures. Each of the amounts included in the calculation of recurring cash flow are computed in accordance with GAAP, with the exception of sustaining capital expenditures, which is not defined under GAAP. Sustaining capital expenditures are defined as capital expenditures (determined in accordance with GAAP) which do not increase the capacity or term of an asset. Recurring cash flow is not intended as an alternative measure of cash flow from operations or operating results (as determined in accordance with GAAP). Recurring cash flow per share is not intended to be an alternative measure of earnings per share. Adjusted EBITDA and recurring cash flow are presented as additional information because management believes these measures are useful indicators of the financial performance of our core businesses. In addition, Adjusted EBITDA is a measure of current financial performance used in our debt covenant calculations. Our measures of Adjusted EBITDA and recurring cash flow may not be comparable to similarly titled measures of other companies, including companies in the tower industry and in the historical financial statements of Global Signal. The tables set forth below reconcile these non-gaap financial measures to comparable GAAP financial measures. Cautionary Language Regarding Forward-Looking Statements These forward-looking statements and reconciliations contain forward-looking information that are based on our management's current expectations. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and other factors. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the SEC. 25

26 Non-GAAP Financial Measures RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES Historical Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures: Adjusted EBITDA, recurring cash flow, and recurring cash flow per share for Crown Castle for the years ended December 31, 2001, December 31, 2002, December 31, 2003, December 31, 2004, December 31, 2005 and December 31, 2006 are computed as follows: Twelve Months Ended December 31, 2001 December 31, 2002 December 31, 2003 December 31, 2004 December 31, 2005 December 31, 2006 (in thousands, except per share amounts) Net income (loss) $ (396,607) $ (316,332) $ (451,611) $ 233,107 $ (401,537) $ (41,893) Restructuring charges (credits) 17,577 8,665 1,291 3,729 8,477 (391) Asset write-down charges 13,024 52,598 14,317 7,652 2,925 2,945 Integration costs (1) ,503 Depreciation, amortization and accretion 262, , , , , ,244 Losses on purchases and redemption of debt - (79,138) 119,405 78, ,797 5,843 Interest and other income (expense) (2,489) 14,214 12, (1,354) 1,629 Interest expense and amortization of deferred financing costs 270, , , , , ,328 Benefit (provision) for income taxes 465 4,407 2,465 (5,370) 3, Minority interests (9,724) (11,770) (3,992) (398) (3,525) (1,666) Cumulative effect of change in accounting principle ,031 - Income (loss) from discontinued operations, net of tax 45,158 (7,340) (4,430) (534,688) (848) (5,657) Stock-based compensation charges (2) 3,488 3,488 13,986 13,088 19,947 16,718 Adjusted EBITDA $ 203,700 $ 219,113 $ 244,231 $ 287,145 $ 335,062 $ 427,446 Less: Interest expense and amortization of deferred financing costs 270, , , , , ,328 Less: Sustaining capital expenditures 12,000 12,000 9,116 9,795 13,845 9,306 Recurring cash flow $ (79,066) $ (66,729) $ (23,719) $ 70,580 $ 187,411 $ 255,812 Weighted average common shares outstanding 214, , , , , ,245 Recurring cash flow per share $ (0.37) $ (0.31) $ (0.11) $ 0.32 $ 0.86 $ 1.23 (1) Inclusive of stock-based compensation expense. (2) Exclusive of stock-based compensation included in integration costs. 26

27 Non-GAAP Financial Measures Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarters ending March 31, 2006 and March 31, 2007 are computed as follows: For the Three Months Ended March 31, 2006 March 31, 2007 Net income (loss) $ (6,722) $ (42,891) Restructuring charges (credits) - - Asset write-down charges 335 1,352 Integration costs (1 ) - 8,848 Depreciation, amortization and accretion 72, ,693 Losses on purchases and redemptions of debt - - Interest and other income (expense) 1,336 (3,299) Interest expense, amortization of deferred financing costs 32,260 82,015 Benefit (provision) for income taxes 616 (22,162) Minority interests (911) (217) Cumulative effect of change in accounting principle - - Income (loss) from discontinued operations, net of tax (5,657) - Stock-based compensation charges (2 ) 3,514 4,919 Adjusted EBITDA $ 96,862 $ 167,258 Less: Interestexpense and amortization of deferred financing costs 32,260 82,015 Less: Sustaining capital expenditures 1,917 2,844 Recurring cash flow $ 62,685 $ 82,399 Weighted Average Shares Outstanding 214, ,456 Recurring cash flow per share $ 0.29 $ 0.30 Site rental gross margin (tower gross margin) and annualized site rental gross margin for Global Signal for the quarter ended December 31, 2006 is computed as follows: Three Months Ended December 31, 2006 (in thousands) Site rental revenue $ 124,732 Less: Site rental cost of operations (3) 55,526 Site rental gross margin $ 69,206 Annualized site rental gross margin $ 276,825 (1) Inclusive of stock-based compensation expense. (2) Exclusive of stock-based compensation included in integration costs. (3) Exclusive of amortization, depreciation and accretion 27

28 Non-GAAP Financial Measures Outlook Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarter ending June 30, 2007 and the year ending December 31, 2007 are forecasted as follows: Forecast Ranges (in millions, except per share amounts) Q Full Year 2007 Net income (loss) $(61) to (24) $(192) to (79) Asset write-down charges 2 to 4 5 to 10 Integration costs (1) 7 to to 33 Depreciation, amortization and accretion 132 to to 570 Losses on purchases and redemption of debt - - Interest and other income (expense) (2) to 0 (5) to (2) Interest expense and amortization of deferred financing costs 88 to to 351 Benefit (provision) for income taxes (27) to (17) (89) to (59) Minority interests (1) to 0 (2) to 0 Income (loss) from discontinued operations, net of tax - - Stock-based compensation charges (2) 5 to 7 20 to 24 Adjusted EBITDA $175 to 180 $735 to 750 Less: Interest expense and amortization of deferred financing costs $88 to 90 $346 to 351 Less: Sustaining capital expenditures 6 to 8 19 to 23 Recurring cash flow $80 to 85 $365 to 375 Shares outstanding as of 3/31/ Recurring cash flow per share $0.28 to $0.30 $1.30 to $1.33 (1) Inclusive of stock-based compensation expense. (2) Exclusive of stock-based compensation included in integration costs. 28

29 Other Calculations OTHER CALCULATIONS: Site rental gross margin(tower gross margin) for Crown Ca stle for the quarters ended December 31, 2004, March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, September 30, 2006, December 31, 2006 and March 31, 2007 is computed as follows: Three Months Ended December 31, 2004 March 31, 2005 June 30, 2005 September 30, 2005 December31, 2005 (in thousands) Site rental revenue $ 139,755 $ 141,468 $ 147,409 $ 152,802 $ 155,446 Less: Site rental cost of operations (3) 48,159 48,323 48,402 50,671 49,959 Site rental gross margin $ 91,596 $ 93,145 $ 99,007 $ 102,131 $ 105,487 Three Months Ended March 31, 2006 June 30, 2006 September 30, 2006 December 31, 2006 March 31, 2007 (in thousands) Site rental revenue $ 161,897 $ 169,160 $ 178,995 $ 186,672 $ 299,792 Less: Site rental cost of operations (3) 49,690 50,927 55,261 56, ,595 Site rental gross margin $ 112,207 $ 118,233 $ 123,734 $ 130,096 $ 193,197 Site rental gross margin(tower gross margin) for GSL for the quarters ended December 31, 2004, March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, September 30, 2006 and December 31, 2006 is computed as follows: Three Months Ended December 31, 2004 March 31, 2005 June 30, 2005 September 30, 2005 (in thousands) Site rental revenue $ 49,062 $ 54,030 $ 77,557 $ 116,131 Less: Site rental cost of operations (3) 14,828 16,052 30,133 53,166 Site rental gross margin $ 34,234 $ 37,978 $ 47,424 $ 62,965 Three Months Ended December 31, 2005 March 31, 2006 June 30, 2006 September 30, 2006 December31, 2006 (in thousands) Site rental revenue $ 120,310 $ 120,995 $ 122,467 $ 127,761 $ 124,732 Less: Site rental cost of operations (3) 52,612 53,355 56,872 55,461 55,526 Site rental gross margin $ 67,698 $ 67,640 $ 65,595 $ 72,300 $ 69,206 (3) Exclusive of amortization, depreciation and accretion. 29

30 Other Calculations Site rental gross margin (tower gross margin) for pro forma combined CCI for the quarters ended December 31, 2004, Ma rch 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, September 30, 2006 and December 31, 2006iscomputed as follows: Three Months Ended December31, 2004 March 31, 2005 June 30, 2005 September 30, 2005 (in thousands) Site rental revenue $ 188,817 $ 195,498 $ 224,966 $ 268,933 Less: Site rental cost of operations (3) 62,987 64,375 78, ,837 Site rental gross margin $ 125,830 $ 131,123 $ 146,431 $ 165,096 Three Months Ended December31, 2005 March 31, 2006 June 30, 2006 September 30, 2006 December 31, 2006 (in thousands) Site rental revenue $ 275,756 $ 282,892 $ 291,627 $ 306,756 $ 311,404 Less: Site rental cost of operations (3) 102, , , , ,102 Site rental gross margin $ 173,185 $ 179,847 $ 183,828 $ 196,034 $ 199,302 Site rental gross margin (tower gross margin) and annualized site rental gross margin change for Crown Castle for the year ended December 31, 2001 to December 31, 2006 annualized is computed as follows: Twelve Months Ended Three Months Ended Annualized December31, 2001 December 31, 2006 December 31, 2006 Change % Change (in thousands) Site rental revenue $ 377,326 $ 186,672 $ 746,688 $ 369,362 98% Less: Site rental cost of operations (3) 160,271 56, ,304 66,033 Site rental gross margin $ 217,055 $ 130,096 $ 520,384 $ 303, % Site rental gross margin (tower gross margin) for the quarter ending June30, 2007 and the year ending December 31, 2007 are forecasted as follows: Forecast Ranges (in millions) Q Full Year 2007 Site rental revenue $316 to $321 $1,265 to 1,280 Less: Site rental cost of operations (3) $115 to 120 $440 to 450 Site rental gross margin $199 to 204 $820 to 830 (3) Exclusive of amortization, depreciation and accretion. 30

31 Other Calculations Annualized US site rental revenue and site rental revenue per tower for Crown Castle, AMT, and SBAC for the quarter ending March 31, 2007 is computed as follows: ($ in thousands, except per share and per tower amounts) Crown Castle AMT SBAC Site Rental Revenue (4) $ 300,482 $ 346,029 $ 76,510 Annualized site rental revenue $ 1,201,928 $ 1,384,116 $ 306,040 # Towers 22,264 22,436 5,702 Annualized site rental revenue per tower $ 53,985 $ 61,692 $ 53,672 Equity Capital Per Tower for Crown Castle, AMT and SBAC for the three months ended March 31, 2007 is computed as follows: ($ in millions, except per share and per tower amounts) March 31, 2007 March 31, 2007 March 31, 2007 Crown Castle AMT SBAC Price/share on 5/7/07 $ $ $ # of shares Equity capital $ 9,583 $ 16,380 $ 3,150 Net debt 5,884 3,525 1,686 Firm value $ 15,467 $ 19,905 $ 4,836 Tower Count (Wireless towers only) 23,702 22,436 5,702 Equity Capital Per Tower $ 404 $ 730 $ 552 Common Shares per Tower (in thousands of shares) (4) Crown Castle calculation includes the sum of $284.8 million in US site rental revenue plus $15.7 million of site rental revenue from GSL for January 1-12,

32 Other Calculations Total Debt to Enterprise Value for Crown Castle, AMT,and SBAC for the three months ended March 31, 2007 is computed as follows: ($ in millions, except per shareand per tower amounts) March 31, 2007 March 31, 2007 March 31, 2007 Crown Castle AMT SBAC Total Debt $ 6,008 $ 3,572 $ 1,905 Enterprise Value Debt $ 6,008 $ 3,572 $ 1,905 Less: Cash (125) (47) (219) Net Debt 5,883 3,525 1,686 Minority Interest Preferred Stock Total $ 6,224 $ 3,525 $ 1,686 Market cap Shares (in millions) Price/share on 5/7/07 $ $ $ Market Cap $ 9,583 $ 16,380 $ 3,150 Total Enterprise Value $ 15,807 $ 19,905 $ 4,836 Debt / Enterprise Value 37% 18% 35% 32

33 Other Calculations Crown Castle share purchases as a % of recurring cash flow is calculated as follows: (In thousands of dollars) Recurring cash flow 2003-Q Crown Castle 2003 $ (23,719) , , ,812 Q ,399 Total RCF 572,483 Share Purchases $ 2,038, % Potential revenue growth to recurring cash flow per share as of March 31, 2007 is computed as follows: Average annual revenue per tenant per tower $ 18,000 Project Southpointe estimated demand (tenant per tower) 1.25 Total estimated incremental revenue per tower $ 22,500 Assumed incremental margin 90% Incremental recurring cash flow per tower $ 20,250 Incremental recurring cash flow $ 450,846,000 Proforma Common shares 281,600,000 Incremental recurring cash flow per share $ 1.60 Tower count 22,264 33