Third Quarter 2009 Earnings Conference Call. November 4, 2009

Transcription

1 Third Quarter 2009 Earnings Conference Call November 4, 2009

2 Cautionary Information This presentation contains forward-looking statements and information that are based on management s current expectations. Such statements include, but are not limited plans, projections, Outlook and estimates regarding (i) the growth of our business and the fundamentals of our industry, (ii) demand for wireless communication services, (iii) the use of proceeds of the $500 million issuance of senior notes, (iv) the repayment, repurchase or refinancing of our debt, including alternatives and timing with respect there, (v) our investments of cash from cash flows and other sources, including the availability and type of investments and the impact and return on our investments, (vi) cash, cash equivalents and revolving credit facility availability, (vii) currency exchange rates, (viii) site rental revenues, (ix) site rental cost of operations, (x) site rental gross margin, (xi) Adjusted EBITDA, (xii) interest expense and amortization of deferred financing costs, (xiii) capital expenditures, including sustaining capital expenditures, (xiv) recurring cash flow, including on a per share basis, (xv) net income (loss), including on a per share basis, and (xvi) the utility of certain financial measures in analyzing our results. Such forward-looking statements are subject certain risks, uncertainties and assumptions, including prevailing market conditions and other facrs. 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 facrs which could affect our results is included in our filings with the Securities and Exchange Commission. The Company assumes no obligation 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 under the invesr section of Crown Castle s website at 2

3 Q Summary Delivered excellent third quarter results o Site rental revenue, site rental gross margin, adjusted EBITDA and recurring cash flow all exceeded p-end of previously provided outlook Disciplined approach costs o Direct site rental opex costs approximately flat US tenant application volume remains strong o YTD application volume up 38% compared the first three quarters of 2008 o Third quarter 2009 application volume up 41% over the same period a year ago Completed fourth successful financing of 2009 Increased our Outlook for Full Year

4 Operating Highlights Site Rental Revenue Site Rental Gross Margin Adjusted EBITDA $354 $397 $238 $282 $218 $261 Q3 '08 Q3 '09 Q3 '08 Q3 '09 Q3 '08 Q3 '09 4

5 Operating Highlights (cont d), except per share amounts Recurring Cash Flow Recurring Cash Flow / Share $124 $144 $0.44 $0.50 Q3 '08 Q3 '09 Q3 '08 Q3 '09 5

6 Q Outlook Site Rental Revenue Site Rental Gross Margin $338 $355 $397 $402 $225 $241 $280 $285 Q4 '07 Q4 '08 Q4 '09 Q4 '07 Q4 '08 Q4 '09 Reported Results Midpoint of Outlook Issued on November 3, 2009 Adjusted EBITDA Recurring Cash Flow $209 $225 $259 $264 $111 $125 $129 $134 Q4 '07 Q4 '08 Q4 '09 Q4 '07 Q4 '08 Q4 '09 6

7 Full Year 2009 and 2010 Outlook Site Rental Revenue Site Rental Gross Margin $1,286 $1,403 $1,537 $1,542 $1,645 $1,665 $843 $946 $1,083 $1,088 $1,175 $1, E 2010E E 2010E Reported Results Midpoint of Outlook Issued on November 3, 2009 Adjusted EBITDA Recurring Cash Flow $759 $867 $1,008 $1,013 $1,095 $1,115 $385 $486 $536 $541 $612 $ E 2010E E 2010E 7

8 Pro Forma Debt Schedule and Ratios Issue Face Value Final 2007 Crown Castle Operating Company Term Loan 634 March 5, % Senior Notes Due January 15, % Senior Secured Notes Due ,200 May 1, % Senior Secured Notes, Series , Class A August 15, % Senior Notes Due November 1,2019 9% Senior Secured Notes, Series , Class A-2 75 August 15, 2029 Senior Secured Tower Revenue Notes, Series (1) 1,691 June 15, 2035 Senior Secured Tower Revenue Notes, Series (2) 1,550 November 15, 2036 Capital Leases and Other Obligations 17 Various Pro Forma Total Debt $6,742 Less: Pro Forma Cash and Cash Equivalents (3) (752) Pro Forma Net Debt $5,990 Pro Forma Net Debt Adj. EBITDA Ratio 7.5x 6.9x 5.7x (4) Q3 '07 Q3 '08 Q3 '09 (1) Anticipated repayment date is in June 2010; amount reflects buybacks through Ocber 2009 (2) Anticipated repayment date is in November 2011 (3) Excludes restricted cash (4) Calculated using LQA Q Adjusted EBITDA and net debt pro forma for 7.125% Senior Notes due 2019 issuance and debt buybacks; preferred sck not included in calculation 8

9 Interest Rate Hedges Effectively locks LIBOR for 5 years following settlement dates Hedged Debt LIBOR Fixed Rate Notional Final Settlement Date (1) Valuation (2,3) GSL II $294m Notes 5.14% $294 12/15/2009 ($31) Towers LLC $1.9b Notes 5.18% $1,900 6/15/2010 ($179) GSL III $1.55b Notes 5.26% $1,550 2/15/2011 ($115) Towers LLC $1.55b Notes 5.15% $1,550 11/15/2011 ($76) Total $5,294 ($401) 5 Year LIBOR Swap Rate (4) & CCI Interest Swap Liability (5) Interest Swap Valuation Sensitivity (5) 20-year average of 5-year LIBOR swap rate is 5.7% 5% 4% $800 $600 ($84) $141 3% $400 ($326) 2% $200 ($590) Current liability of $401m (3) 1% $0 ($913) 9/30/08 3/31/09 11/2/09 5 Year LIBOR Swap Rate CCI Interest Swap Liability (1) Swaps be cash settled on settlement date (2) 5-year LIBOR interest swap rate at 2.69% (3) Valuation represents cash settlement based upon the yield curve in effect on 11/2/2009 (4) Indicative of the interest rate curve which determines the interest swap liabilities (5) Valuation represents cash settlement values 1.0% 2.0% 3.0% 4.0% 5.0% Assumed LIBOR Swap Rates 9

10 Site Rental Revenue and Total Capex Site Rental Revenue and Total Capex Continued revenue growth sustained with minimal level of capex $354 $355 $368 $376 $397 Majority of cash flows has been allocated retire existing indebtedness o $32 million of capex in Q3 09 vs. $140 million of capex in Q3 08 $140 $108 $39 $40 $32 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Site Rental Revenue Total Capex 10

11 Pro Forma Debt Maturity Schedule (1) (2,4) $1,691 (3,4) $1,550 $1,219 $919 $625 $516 $2 $18 $23 $24 $25 $19 $20 $ (1) Pro forma for issuance of 7.125% Senior Notes due 2019; excludes capital leases and other obligations (2) Anticipated repayment date is in June 2010; amount reflects buybacks through Ocber 2009 (3) Anticipated repayment date is in November 2011 (4) If the 2005 and 2006 Tower Revenue Notes are not paid in full on or prior their respective anticipated repayment dates, then substantially all of the cash flows of the assets securing the Notes must be applied make principal payments on the applicable Tower Revenue Notes thereafter 11