Crown Castle Inc. · NYSE:CCI
Crown Castle — Morgan Stanley Conference Feb 2012
13 slides from Crown Castle's conference presentation, February 2012
Slide 1: Jay Brown, Chief Financial Officer
Jay Brown Chief Financial Officer
Slide 2: Cautionary Information
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 to plans, projections, Outlook and estimates regarding (i) the growth of our business, including investment o
Slide 3: Real Estate Provider to the Wireless Industry
Real Estate Provider to the Wireless Industry Crown Castle is the largest tower operator in the U.S. 3
Slide 4: Stable Business Model Characterized by Strong Growth Profile
Stable Business Model Characterized by Strong Growth Profile Contracted revenues and control of assets …while a strong asset base and significant liquidity provide long-term stability… provide continued growth opportunities Long-Term Contracted Revenues Attractive Tower Footprint Site Rental Revenue
Slide 5: Proven Track Record of Operating Stability and Growth
Proven Track Record of Operating Stability and Growth Strong Execution + Focused Capital Deployment = Significant Growth Discretionary Cash Spend Since 2004 AFFO per Share $1,938 Acquisitions & Land Purchases $2.78 Investments(3) 14% 75% 19% $1,286 Tower Builds & Improvements $1.54 $ 66% 17% Share p
Slide 6: Focused on the Largest, High-Growth Wireless Market in the World
Focused on the Largest, High-Growth Wireless Market in the World Attractive Subscriber Economics and High / Increasing Usage… …Promote U.S. Wireless Carriers to Make Capital Investments 2011E Monthly ARPU(1) U.S. Wireless Capital Expenditures(3) ($ in billions) Voice ARPU Data ARPU $30 $30.5 5 $51 $
Slide 7: Historical Tower Demand Drivers
Historical Tower Demand Drivers Minutes of Use Predominantly Driven By: (in trillions) 2.96 ¾ Increasing voice minutes of use ¾ Increasing subscriber penetration rate 0.32 ¾ Capacity and geographic buildout 2000 2010 ¾ Wireline replacement Source: Wall Street Research Increasing consumer wireless us
Slide 8: Future Tower Demand Drivers
Future Tower Demand Drivers Forecasted US Mobile Data Traffic(1) Increasing smartphone US Growth by Select Device Type(1) (PB per month) penetration 2011 to 2016 CAGR Per 1,731 # of Total Device Adoption of emerging and Devices Traffic Usage embedded devices Smartphones 13% 86% 110% Continued develo
Slide 9: Strategic Priorities Remain Unchanged
Strategic Priorities Remain Unchanged Maximize Long-Term AFFO per Share 2012E Investment Capacity ($ in millions) ¾ Effectively allocate ¾ Leverage existing capital by making assets to drive accretive g organic growth g Total: Approximately $1 $1.2 2 Billion investments ~$400 Borrowing ¾ Maintain an
Slide 10: Appendix
Wiest Appendix
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures This presentation includes presentations or discussions of adjusted funds from operations ("AFFO") and Adjusted EBITDA, which are non-GAAP financial measures. Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures NON-GAAP RECONCILIATIONS: FFO and AFFO for fiscal years 2007 through 2012 are computed as follows: December 31, 2007 December 31, 2008 December 31, 2009 December 31, 2010 December 31, 2011 (4) (in millions) December 31, 2012 Net income $ (223.0) $ (48.9) $ (114.1) $ (311.
Slide 13: Other Calculations
Other Calculations OTHER CALCULATIONS: Site Rental Gross Margin and Site Rental Gross Margin Percent for Crown Castle for fiscal years 2007 through 2012 are computed as follows: (1) December 31, 2007 December 31, 2008 December 31, 2009 December 31, 2010 December 31, 2011 December 31, 2012 (in millio