Crown Castle International Corp. (CCI), an operator of towers and other communications structures, Wednesday reported a profit for the fourth quarter, compared to a loss last year, benefiting from higher site rental and network services revenue, as well as the absence of impairment charge recorded last year. Earnings topped analysts' estimates who were expecting a loss for the quarter. Looking ahead, the company also expects a loss for the full year 2010.
The Houston, Texas-based company's net income attributable to CCIC stockholders for the fourth quarter was $18.15 million, compared to a loss of $63.82 million in the prior year period.
Net income attributable to CCIC stockholders after deduction of dividends on preferred stock was $12.95 million or $0.04 per share, compared to a loss of $69.02 million or $0.24 per share in the prior year quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to report a loss of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.
Net gain on interest rate swaps for the quarter was $21.09 million, compared to a loss of $40.29 million in the prior-year quarter.
Total revenue for the quarter increased 13% to $443.54 million from $392.02 million in the same period last year. Fourteen Street analysts had revenue estimates of $436.26 million for the quarter.
By segment, site rental revenues increased 13% to $402.61 million from a year ago. Site rental gross margin increased $43.3 million or 18% to $284.0 million in the fourth quarter of 2009 from last year.
Network services and other revenues rose to $40.93 million from $37.00 million in the comparable period last year.
Total costs of operations increased to $146.71 million from $135.92 million in the previous year.
The company recorded an impairment of available-for-sale securities of $32.15 million in the fourth quarter of the previous year.
During the fourth quarter of 2009, Crown Castle issued $500 million of 7.125% Senior Notes due 2019 and increased its revolving credit facility to $400 million while extending the maturity to September 30, 2013. The company also repurchased $59.1 million of the June 2005 Notes for $59.8 million, with total repurchases of its senior and senior secured notes amounting to $461.3 million since January 1, 2010.
For the fiscal 2009, net loss attributable to the stockholders after preferred dividends widened to $135.14 million or $0.47 per share from $69.66 million or $0.25 per share a year ago. Total net revenues for the year rose to $1.68 billion from $1.53 billion last year.
Analysts expected a loss of $0.53 per share, on revenues of $1.68 billion for the fiscal 2009.
Looking forward to the first quarter, the company said it expects site rental revenues in the range of $403 to $408 million. Net loss per share is estimated in the range of $0.25 to $0.15. The estimates include interest expense and amortization of deferred financing costs in the range of $119 million and $124 million.
Street analysts currently expect breakeven per share on revenues of $441.44 million for the next quarter.
For the full-year 2010, the company said it expects to report a loss of $0.21 to a profit of $0.01 per share, including interest expense and amortization of deferred financing costs in the range of $476 million to $486 million. Site rental revenues are estimated in the range of $1.645 to $1.665 billion for the year.
Previously, the company expected to report a $0.06 per share loss to a profit of $0.24 per share.
The Street currently expect earnings of $0.12 per share on revenues of $1.80 billion for fiscal year 2010.
CCI closed Wednesday's regular trading at $38.25, up 0.81 or 2.16%, on a volume of 1.76 million shares on the NYSE. In after hours, the stock declined 0.10 or 0.26%, trading at $38.15. In the past 52-week period, the stock traded in a range between $15.40 to $40.49, on a 3-month average volume of 1.70 million shares.
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