Crown Castle International Corp. posted solid third-quarter earnings results this week.
Site rental revenues reached $134 million, up 11.6 percent from a year ago. U.S. site rental revenue alone made up $125.3 million of that, up 10.5 percent from the same period in 2003.
Operating income was $11.6 million, up from a loss of $7.3 million last year. Net loss was $56.1 million, improved from a loss of $104.8 million a year ago. Net cash from operating activities totaled $19.2 million, and free cash flow reached $9.5 million.
“We are very pleased with our company performance this quarter as we continue to complete over 25 percent more new tenant leases with our customers in 2004 than in 2003,” said John Kelly, president and chief executive officer of Crown. “As our customers focus on enhancing their wireless networks to meet consumer demand, we are diligently working to provide them rapid coverage and capacity solutions on our extensive portfolio of towers.”
“Moreover, the company-transforming sale of our U.K. subsidiary that was completed during the quarter affords us the operational and financial flexibility to capitalize on the anticipated growth potential of the U.S. market,” added Kelly.
For the fourth quarter, Crown increased its outlook for site rental revenues to between $528 million and $530 million. The company expects earnings before interest, taxes, depreciation and amortization to reach between $288 million and $291 million.
For 2005, Crown predicts site-rental revenues will reach between $565 million and $575 million, with EBITDA of $310 million to $320 million. Net cash should reach $225 million to $245 million, and free cash flow is expected to top off between $195 million to $215 million.
Shares of Crown were trading up 2.5 percent at $15.38 following the news.
Global Signal Inc., American Tower Corp. and SBA Communications Corp. are all scheduled to release their third-quarter financial results later this week.
