The top two tower operators, Crown Castle International and American Tower Corp., plan to make non-cash adjustments to their financial statements in light of a Feb. 7 Securities and Exchange Commission letter. The two operators plan to release their quarterly results March 9.
Crown Castle said it will amend appropriate filings with the SEC to include restated financial statements for the two-year period ended December 31 and for the first three quarters of 2004. American Tower said it will review its 2004 results and “one or more previous years.” Both companies said they will correct increases in site rental revenue, ground rent and depreciation expense.
“The adjustments will not affect historical or future cash flow or the timing of payments under related leases,” said Crown Castle. American Tower said the same.
In the letter to the American Institute of Certified Public Accountants, the SEC asked for clarifications on issues relating to lease accounting.
The operators said the review will not affect their cash balances, although Crown Castle said it will affect its 2005 outlook.
