HOUSTON—Following Crown Castle International Corp.’s good news—the company’s shrinking net loss in the second quarter—the company released some not-so-good news that the Securities and Exchange Commission has launched an informal inquiry into the company’s stock-option practices.
Crown said it will cooperate with the SEC in its investigation, and will also conduct an internal investigation into the matter. Crown is one of a number of companies embroiled in stock-option investigations.
As for its second-quarter results, Crown’s net loss came in at $13.3 million for the quarter, down from a net loss of $225.8 million during the same period last year. Last year’s results included $198.5 million in losses from early retirement of debt.
Site rental revenues for the quarter increased 14.8 percent to $169.2 million from $147.4 million for the same period last year. Site rental gross margin increased 19.4 percent to $118.2 million from $99 million during the same period last year.
The company offered guidance for the third quarter of a net loss of between $17 million and $34 million. For the year it forecasts a net loss of between $63 million and $110 million.
Raymond James Equity Research called the company’s earnings “solid,” and said, “We believe the environment for CCI remains favorable for continued shareholder value creation.”
CCI is the nation’s second-largest tower owner with about 12,300 sites.
News of the company’s earnings sent its stock down $1.69 per share to $33.71.
