Crown Castle (CCI) 27 Feb 202019 Q4 Earnings call transcript

Good day, and welcome to the Crown Castle Q4 2019 Earnings Call. Today's call is being recorded. At this time, I would like to turn the conference over to Ben Lowe. Sir, please go ahead.

Thank you, Katie, and good morning, everyone. us we joining quarter our for results. XXXX you today review as fourth Thank the morning Crown call Crown on me With this Executive Officer. and Financial Castle's are Officer; Dan Chief Schlanger, Castle's Chief Brown, Jay To aid supplemental the to which section Investors throughout crowncastle.com, have the our at morning. will materials website in of we discussion, the we posted refer call this

vary to and call results This contain press forward-looking could may subject this actual SEC Factors are Risk assumptions, and conference which will and of from release Information certain -- is expected. uncertainties filings. the call which risks, factors the those about company's materially results statements, sections the available potential in our affect

we obligation statements. Our any forward-looking assume update statements made XXXX, no of are to as today, February and XX,

our As in we information release of the you the restated restatement. the effect yesterday, discuss Of financials. our expected from press saw historical financial this includes call we've

measures. discussions package In these in addition, information company's includes section measures call the supplemental non-GAAP website today's non-GAAP Investors of of Tables available the crowncastle.com. financial the reconciling are in at financial certain

So the let me to over that, call with Jay. turn

everyone, and call morning. on us Thanks, thank this for the Ben, you, joining

and in come. of both Castle concentrated share, another flows miles than near from strategy dividends and level included unmatched to portfolio As cash we you decade. route to in more the XXXX, our believe activity U.S. a the I tower year our XX,XXX of growth and in in closed leasing generating saw markets in years growth towers approximately out and positioned of solid highest results, which the term more generate fiber top than has Crown of XX,XXX for per

year year results XXXX more the XXXX detail. for full discuss will in a Dan bit outlook the and full

my morning this points. focus X want I on key to So comments

growth for growth the cash customers by And Crown the our expect of deploy on cycle we of XXXX are as we excited long secondly, dividends about I'm significant as flows be of they share. sitting year and runway to doorstep in investment First, another per another Castle XG.

expect when point, approximately we levels segments in first and X% tower to fiber similar per our XXXX. the of share On XXXX compared grow growth to supported by in by AFFO

expect of expect XXXX customers our to experienced levels to growth We ongoing level data as elevated that year of the the we we with leasing -- mobile that growth continue this in demand. in tower similar respond

pending in late merger Uncertainty a the and decrease during between Sprint around activity the XXXX. early and outcome caused of T-Mobile XXXX

short-lived slowdown drives prove merger we in second this anticipate and believe clarity as increase XG investments. industry ramp in a a ultimately this will as temporary half the significant we around in However, of year activity

fiber XXXX the cell XX,XXX Within year making the was making our highest deployed small it businesses, cell nodes, year a successfully our small approximately we've production of in as and history. terrific -- company's

deploy more construction respond with ongoing small scale of challenging same in on another expect from XX,XXX continue in capabilities. than we XX,XXX XX,XXX approximately cell year significant customers the nodes We this hurdles we another time, demand in with many to to the our at navigating remain increase that while, pipeline as and XXXX air municipalities finished our provider terms small leading and the utilities. We cell small remain cells U.S. as and to

enterprises, agencies. bandwidth connectivity, over and including the returns require by time to care further fiber and XXXX, generated approximately from generating route our sharing XX,XXX solutions larger that Adding solutions fiber to in institutions business we customers X% to across anticipate levels similar improve growth our asset this attaching health cells growth are same of the market returns revenue we government small year. we of miles of path from We this large addressable a see fiber, fiber high

shaping is Simply XXXX and similar, to loaded more about excited put, XXXX am be XXXX bigger than I we XXXX, picture. about up growth. And even as expected. albeit was as previously a great And more I'm year back-end potentially excited of the

positioned right with and deliver come. our decades to generate capabilities Castle the assets returns to shareholder market have the to value in right market-leading Crown We for customers with

As given is XX-year over often stretch the that possible natural is underestimating while case, to overestimate is the can what the occur in change tendency any a XX-month dramatic period.

in XX,XXX over have in to rental revenue the we revenue. business billion rental in in approximately approximately are last tower annual $X.X nearly decade, towers from U.S., with today towers Looking we XXXX significantly $X.X where site billion our expanded annual generating the XX,XXX generating back site

during a see nearly a fiber $XX cells to markets in in position small capital or in XX% the of an We also revenues. approximately total to and dividend stock common establish we footprints market-leading industry a the our that provides demand. of locations totaling shareholders, long-term on currently $X invested greatest basis we of annual our capital Further, -- that small billion across time built have established consistent the return U.S. have where top prime billion

and dynamics up an XG. on assets deploy the us next a last like the the market investment believe While cycle portfolio long than capitalization XX sets future that for a the total years and equity our assets potential will compound a return increased industry from the billion the has making continued And less to for XX% combination we XX significant our growth deployed, XX. investments of opportunity embarks market of our those This last shareholders our has the as over as generating to growth annual make of look expand runway to capabilities billion, than during in wireless $XX unique years. greater lot of $XX XG is

a is activity reality their our data connecting connecting the anticipate and becomes keep annual XG XX% significant that wireless of from in top pace levels to tower that XG everything. long-term with investment, networks more is infrastructure to On a in highest our to largely expand environment continued leasing the for demand than decade growth. as current networks customers XX% demand generating demand of everyone we The heavily to investing tied

of Adding to first the scale than across established requirement. meet along have to a several decade will at wireless believe are the is in DISH my a the XXX in operators deploy I over order the and the leverage years to into compete time and and networks visibility with U.S. industry. Adding next nearly position industry more that a AT&T this potential accelerate to customer the in T-Mobile, their ultimately XG deployment assets, the more megahertz market had of promoting to with entering the valuable recent new build-out new investment spectrum We with looking significant optimism, in scale Verizon, believe developments the spectrum great help to opportunity, we

communications in believe a And Crown Castle expect in to market of infrastructure that our ownership, finally, small the shareholders long-term will on through I to capital dividend well world annually. future expertise a there the believe and high-quality to consistently the a tower and in position for great that bode to asset horizon deliver auctions X% is substantial capture X% are return opportunities demand. these several grow we we for best cell and With operating our the large spectrum base unmatched

Dan the to more the with call specifics And year. over and some the of last turn go of to quarter that, I'll through the

of We production in annual while growth and generated and to by share grew our nodes XXXX our commitment underlying capital weighted the shareholders. also returning dividends XX,XXX the in with refinancing business financial lowering billion than a level our small we highest our decade. financial more good borrowing cell delivered at debt highlights. accelerated everyone. and tower another $X.X the our per reflecting to small Thanks, credit of facility increasing long-term delivering to our several and by last highest Jay, average continued We approximately great of by to commitments in by debt We morning, under year, on in average the history, We approximately X%, our year attractive flexibility maturity performance our leasing of $X cost increasing rates. the cells improve revolving billion deployment

where XXXX, please our XXXX all the note I that, will the updated figures As financial I which our and release our results shortly. impact year in walk disclosed we outlook full yesterday, through applicable, restatement earnings for discuss of reflect

year full in of our presentation. revenues adjusted outlook, in and EBITDA to prior the site lines midpoint services at contribution the outperformance activity fourth the X AFFO of the on rental quarter our lower Relative a by results to Turning slowdown from Slide the to was -- XXXX quarter. primarily offset tied during

Sprint the merger believe pending around Jay and in T-Mobile levels to through between that rebounding mentioned, later we late As this lower before led early year. XXXX XXXX will activity outcome continue the of uncertainty

business. services more we in financial a performance As previously than anticipated, we back-end loaded in be particularly our result, our to expect XXXX

looking detail. and million, X% Slide revenues. million rental over increased comprised That to $XXX X% to X% of That inclusive XXXX X% rental Site just Turning revenues site in year in fiber small X full is towers, organic cells approximately growth in growth. in and more in equates $XXX XX% by of solutions. growth contribution to at

and during the $X.X Moving in deployed We comprised of approximately approximately to expenditures, billion towers. capital in of year. expenditures fiber including million billion on investment activities billion capital revenue-generating $X.X $XXX in $X.X

balance XXXX to representing significant billion X% dividend sheet we perspective, we to XXXX. growth aggregate or ended through in returned growth based $X.X From our quarterly of our Additionally, our the year of during EBITDA. by full remain approximately XXXX capital a share, and totaling the target We per stock path at compared expected common XXXX, shareholders a approximately throughout the back $X.XX of debt year. rating anticipate glide committed to EBITDA approximately Xx to credit investment-grade X.Xx to the our on end leverage

XXXX presentation. Slide Turning the to full of on year Starting X outlook. our

the outlook effect apart the remains see unchanged, can You from restatement. our of

wrap successful very year To for was Crown Castle. up, XXXX another

come. X% we a with keep business decades the to demand and our excited seeing growth believe benefits of XG our expect we're from take Jay Castle near-term going investments to are us position which growth X% forward infrastructure. dividend significant the customers increasing high-quality about same just significant earlier making opportunity as for advantage we are data grow to in and shareholder fiber expected in allows discussed long-term to small deployments Crown the returns drive tower We beginning the to generate trends the to are wireless through fiber investments cell making will are At time, and pace that we demand, annually. Currently, and networks returns are our to provide that for

to the the Before like up our In our independent with spend to reported our in previously previously and our review detailed tower and with as disclosed year-end financial press call restatement yesterday. and a described I'd opening release addressing the connection minute questions, our statements of policies services. our internally receiving SEC, procedures auditors subpoena after we for from the in of a installation engaged accounting

Following services whether the additional that portion Office our input review, from to Accountant the seek of OCA, to decided -- of should is the our a of the recognized also with. associated regarding of the the with SEC, term auditors installation installation installation the as tower we Chief the of revenues of over work referred work -- our of lease lease be the

the completion site the on a remaining a the which of restatement in and, upon revenue fixed impacts to services, modification term. effect After related this be revenues amounts full ratable service installation price improvements consulting and over assets, recognizing that our with rental acceptable specifically is on the has service recognized as not with the should associated To practice recorded transaction installation OCA, represents lease to permanent tower transaction clear, historical GAAP. fiber our portion only segment our therefore, our results of was determined of no work the Instead, a the lease as the we segment. be basis under associated price for as the

It is facts note restatement. to as key to important relates it the X

growth will of impact flows, cumulative or term cash the going business the will total we on expected gross same per practice. over dividend contracts, operations have net new the And second, of total amount First, forward. revenue recognize our no our customer our share and historical margin as our treatment lease accounting

release, previously SEC or expense of disclosed consultation we review, part OCA continue noted the Based appropriate. capitalization the were believe subpoena. and our not internal which to subpoena, of policies, As are subject with that our the in was the on investigation our our

the with in cooperate course, policies. with the of including will, review SEC, those We connection of fully

like Katie, to questions. up to the With I'd call that, open

[Operator Instructions].

Our Philip first from JPMorgan. will with question Cusick come

today? you a why expensed where give in capitalized of Can are projects A they couple, the first the on restatement. should on some the examples us where ratio accounting you're that has revenue versus the changed of confident cost types be and

you can and second, give in then small the business cell us any timing? And applications update progress on permitting on

what the we're about do Jay and is towers. The add take order to some of of part towers. do our doing that, projects to essence, we when I'll services permanent leave is first types the for we that on one. equipment new In work, we're Phil. second improvement Sure, talking in those to putting to have

So think like in of holds that bracket a or antenna place. something a mount the

permanent we're the As a and adds creating asset revenue-generating we do potential to tower that, value the that we that of going forward. believe

that as we And those of deferral leads said. of capitalize as to that, I improvements, the of we because -- work that need revenue permanent just we capitalize associated is That believe services those have do are to we with capital. capitalization to the the portion

defer that value revenue on capitalize cost the the equipment we we to with we associated as it. and that So tower, of that associated the put tower the piece adds with

comfortable The that permanent policy base that capitalization tower work remain comfortable of do with of have that capitalized the forward, portion add is to we potential place. fixed the asset is adding in going therefore, and to believe the it reason a our to with the we revenue-generating we're we're and

the does versus side? And on capitalization cost the expensing closely more now match this

and does. the It capitalizes then Yes. time. revenue It depreciates it that over defers and

related How terms size? roughly in those are of

that you million. we the How it around -well, are that XXXX we the work through what related see up XXXX and amortization removing capital That's revenue was around do prior XXXX. is can get what are services the -- those XXXX, for had to amortize from we we in the is done business. of historically $XXX then and of million And $XXX then about

expense ratio of How Sorry, those I capitalization meant side? those similar revenue or relative of the to costs. more on the the cost side, different versus are

question. capitalization time The the I'm to the ratio of I'm sorry, expense? having Phil, following a hard relative the

immediately you're -- you terms revenue? versus of if capitalizing side, in the alongside cost you how or the of expensing On are much cost generating, it the

Yes.

a of amount on we because little is the associated revenue -- just that. we're margin capitalizing have amount cost higher with the deferring some a than little that of basis, than percentage we're So the of higher amount that a

expense probably higher on as close, of revenue. is cost So but deferred slightly it's it's pretty percent it's the close. a revenue capitalization it of as the But percentage pretty

applications the and And permit Okay. timing? then on

one. Happy to Yes. that take

utilities, -- different getting a how made projects, we're of around of we approach better hurdles during in think XXXX progress I great terms the we clearing the -- number launch a was how we get do and of to that and municipalities project and some we we the the Certainly, year FCC new pre-work in that and calendar to new during helpful. the the in from market. ready their policy received order feedback a work help

with able clarified we that. mostly doing I've effective be go to complete calls, associated as As help well to past the mentioned was cost as where a in markets and through in were standstill, they their the time at process line the

reflective So of nodes was around We that to calendar production comments Dan these XXXX. in that both the history. made was that air obviously, of done loved put we've the helpful more, but done XX,XXX company's ever year highest of the during and and I on have I level would've think

to around put and work to that, way And the very XXXX scale. on that nodes municipalities challenges but overcome team some about the get of incredibly getting this place at think that plays we'll through to continuing to we're best of so where and we on we hurdles efforts similar our to year of the continuing utilities. broader could And worked kind out deliver the XX,XXX hard

context don't going keep question the think I up, go hurdles is comes the of And that to ever things this, a lot are in one with important associated think, every this I is of time away. to

XX ever the navigate these a you to we year average. time inside able that assets some tower in on these both ever to I desired line aesthetics infrastructure and are and I the that the telling calendar to the that to nodes small that of make done anticipate we're So sure our time we're the The utilities, but get on today of don't XX time a comply get air, when the between the to just like lines high, months cell doubt that are entry of municipalities have long to And with barriers existing incredibly because business. these with work community. just there's

getting relational sure That's So community putting the that infrastructure quickly. making municipalities this I and think largely will these term, desired and for going overcoming the we aesthetics that things long the infrastructure appropriately into challenge need the which is hurdle need of a do to we're and or be work we communities on always the the that the balance into. we infrastructure in with of

Our Morgan Stanley. from Simon next comes with Flannery question

Great.

just small any on Maybe what's of to deployed per and the in the bit does if kind have on it change and a that there of continuing happening you Just up. ability -- little somebody share wants cell. could mile a already And permitting to the the another there fiber lease your is node? same-store add nodes you sales,

And business. or of to market drive to your enterprise sales help Any then changes the and bookings on anything kind like just the engine? force in that your fiber go

You bet.

that made. We're originally we questions mostly an where lease-up operators and we've anchor has that small in similar talked still the preponderance from couple activity we're last the quarters the guess first been U.S., seeing to I see go significant the wireless legacy lease-up tenant to a about. in markets the fiber. desire the XX cells, on that about fiber seeing levels top for on investment to -- built of over we've talked around of months continuing seen last We're few we've the existing On of that the assets that

new density us fiber to additional when of similar. has stayed build, carrier a nodes, the then to ask relatively And construct

neighborhood as And in to come on across that similar a of we're see build-out that. So is the country, we carrier X back the nodes existing mile. and generally to I'd per to say, the go fiber, X.X then want

we associated in -- as a and driven think could as XG, both you more think I as the what's And the for I that days XX in I assets were when being Dan towers from with the case, ago towers. But looked we're around going in of of underwrote upside think excited investments. far early landscape some what term, was when upside at the XG that well currently lease-up later, when have about back we and long about in we of here the there kind to years excess a why saw be anything learnings so about today, these quality years the made assets. was opportunity XX and assets those to lease-up decade, of the talk we sit initial and we built, we the we expect that and over

is the of small the continuing assumptions think long that assets we at the underlying the is on that well to per underwriting. grow the the the need annum, which opportunity be additional and we've usage the underwriting believe, beyond return creates and, current at drivers what give and, traffic lower I much over lots actual XX% levels and time, these of the may than XG opportunity the the these to term XX% And these asset, data need for prove parallel coming, same of assets underwriting criteria the made of on growth, we're therefore, underwriting us in XG investments and assets cell assuming for we're side data for the to

we as be the saw deal we've early as XXXX density the good to we we're end the think, head and will XXXX and we're a least comfort activity give XG as lease-up of which that in assets underwritten currently starting what see at throughout us we coming the is with everything towards that that as of the And carriers, today, of all real and glimpses were what XXXX seeing expected. having in conversations we've great these the market the

about little lease-up. a about that we're on Simon, bit, building building XX% XX% still anchor activity and levels, just builds And on

continuing of the as getting fiber is we're we talking those doing kind think add the we're of to first-mover Jay So accommodate to advantage. miles And is of type lease-up about. what

more lease-up. into asset we're our building our be go a competitive right getting lease-up we And upside when what then of significantly build more go as we're the into than a could we're us fiber, if there. advantage we that we just base that provide underwriting It has market, along. that So and does been, for that more

mile, fact you on one really been asked in node node hasn't changed that the hadn't that of we was look average, on more is questions you change mile, we And we have the nodes the of just and that XX,XXX more is much. embedding X talking of per that at because if construction. fiber It's therefore, miles much miles Jay per neighborhood about XX,XXX just that under air keep think of It upside and building about. that

Simon, on fiber question did solutions? before you to that have another I topic on go

yes. fiber, the on on, Go No. No.

Okay.

On to, the we at business. better fiber running get I solutions side, think, continue that

talked about growth we specifically we the the we're for had in of Dan so as in net X% business. talked guidance assuming growth and about XXXX, As XXXX, in level similar about

-- in yield as those the the believe -- to they form are across to that revenues a the and of continue very attractive incremental of add that, fiber assets. sources assets across We -- the

into want out So we're and to of the out we as on on playing enterprise the a biggest that returns driver same opportunity both as it of talked the -- We as the we better at small of biggest then we're supplement opportunity. to chasing the year and clients that's similar the on business. what -- getting about strategy opportunity XXXX. And building focused the we last driver identifying plant, playing that expected both that's going biggest putting thought. and long-term with we're exactly and returns, we fiber getting the think tenancy, fiber is -- future and that We're along I cell think of of the pipeline

David Your Barden from Barder of -- next America. comes Bank from question

they cells provide you And versus if as possible to any Maybe said on Verizon Josh given role of maybe in is having. issues you insight XXXX for also It's guys Dave. secondly, of year. Xx deploy you're are about relationship how playing that, sort between subpoena there more what did in last that's any expect to permitting you then yesterday? small can you and the think kind restatement and speculate the deployment and you on steady the could SEC the volumes

I -- plans. specifically your question, on Verizon as as any I'm On what their are. first Josh, think speaking build-out not much one going to or can we plans comment avoid least to we try to specifically At their customer,

expecting So get on Verizon, there, more for color 'XX. to they're you I'd to what refer

is available data of is of the reality I today, would wireless networks the that is need will cells. for is at without the amount density long-term which spectrum possible cells the future we've network think available, in today of traffic hear I be cells to from just what carriers, you historical match not given The required the the demand been small and small in comments say, the doing their small that and more cells. small and or broadly, of the close all for pace the use nowhere the the

cells get them why demand, dense to spectrum efficient demand. is them the those in So of and order the macro enough market just lowest can't sites small continue which to for to are density necessary. But to way the data deploy total most sites, handle we -- cost, meet be you

be to million small So going and have X I have necessity going certainly industry of small like, next kind observers the believe built think see be decade, comments the about to of I comments a similar to you're made Verizon, case. lot and of to cells those large-scale to made over cells. the over there's that others comments need well know we

about the topic underwriting last The we're level same to going capture continue we're historically. share that we that is market have of not to that say I'll thing

the that in to of XX will been get our invested of all built. far in The them We top thus may total follow it. of of particularly there's about beyond revenues those to it the continued top driver to in top U.S. everywhere every small we've the over think for cells time, the We're the business, in in that markets we XX in more XXX been as number XX% market in been terms those think are carriers about U.S. the in And the I is an think in markets I towards expectation the talked continue markets fiber location ultimately And has pretty the our build and think capturing pace top biased from of to nodes clear going in activity U.S. order build going the than of not that investment the comments, likely markets I capital keep I majority we've with well be total have we've carrier is U.S. and not small in the the to to the U.S. that markets. cells. vast

to invest it how where of terms think to and And capital, grow, in -- and subsequent market on be capital addressable I up relative many necessitates fiber. so a and of our XG prepared end are that trajectory, we today. XG with in data significant drivers The where in see think, I drive a as in of of of about the number the we my is investment view total the that said cell the selective in and remarks both you grow, see deployments small will line kind as I increase nodes the you growth of we're do will though, everything right we going the

I to to business customers positioned they growth. decade, a about on just But around capture when of be the cells. XXXX. our spend hear for small of both that, about I over made multipliers, optimism I I'm kind portion on and of not how the significant well terms side very And there's lot and as next think a we've fiber going our we're positioned really talk that, to I have, comment in those towers So that the of that give the encouraged rise

And ongoing, part the is each to policies had installation the me subpoena when my the around and answer do just restatement. in other. subpoena which we we as to relationship really to -- And let is update with question, Yes. we Josh, I was the to will The do our with and your it capitalization between services have The business. have the in don't have update. something place statement, mentioned clearest second of address they do had

enough And I through SEC. at acceptable. that we we, we that services like some And that we the would we the nuanced sufficiently -- revenue out our we But though, installation looked of done On we of gone Chief all was to did the restate we around technical not our the what Office the when needed the of business. having found recognition auditor subpoena, needed figured services decided to comfortable capitalization go we've place. is remain the or part what having our review independent received Accountant input seek and we installation done because was with the with say, our policies historically after had a way in we it auditor, I conjunction restatement, policies change from that in that, with that year-end of then have a internal was mentioned, and

led I said, us the So to it us OCA. the path but did related, drive down like they're not that

RBC. Jon comes Our from next question with Atkins

to a then bit give thoughts your update of to And opportunities. year you as of little healthier to leasing weighted. edge Vapor year I kind of think pertains last appear an back-half to compute working math despite year and compared but as tower business, and you kind I the this being towards wondered could those around on it through if and pertains maybe still we're it the guiding be restatement, a it

So in driving if I given am assertion? correct And that back-end so, of this the year? nature what's that

Sure.

we in providing first edge the on investment that believe of tower a is small-scale focused network, IO the movement of namely ago. made question the data Vapor, the We very the and that ability managing edge number the around the move you for of connectivity will, opportunities who put we and because to edge the we want networks. to towards even as traffic of years cost couple of XG, get company years significant want traffic it's going at folks people that investment of to and data And at the more opportunity in the edge a the ago the the network. very network I Vapor think and connect of centers, edge On to edge interconnectivity an as at traffic for edge, made if who They're open of sites. power both both the an up an compute of there's and at reducing a of computing grows means very in at

to are well opportunity. sites tower positioned very our think I capture that

real If around build a level and base network. sites equipment you to the of just tower be on think these location a facilities estate for the at about it colocation the play, a provide the located to edge

amount is significant a for going well be positioned are So to going And tower I towers. that. overall traffic those think wireless the across of sites

So of the tower you're them it of these at to edge them network it, putting at edge the at the facilities logical makes the to when sense put sites. put

The and O-RAN the XG, inseparable a link, fiber becomes seeing much is small our of will the towards the business, both benefit towards think the in fiber for as wireless part value And the And for fiber, world like and think assets increasing with equally we C-RAN more why the vital of think, macro Vapor, that I uniquely other that I up move And happens. the have moves and opportunities as we XG made as grow the though, I even networks. sites in cells us will have. we open and that component those we're I sites we things around that's synergies the think And investment. as X connect assets, to fiber. that the world is over

a I just early. this -- one really part cautionary would of say it's still as the is

are we and day we meaningful. ahead. but facilities, number a of X colocation not of guidance it's think revenues. investment it getting we've the portion opportunity opportunity from be we're think It's the helps and will, So returns world but that If revenues the the of not we a could deployed the driving our and Vapor, do worthy lies that yet, our meaningful made as

excited we're So pretty about that.

when And we XXXX gave of activity little if restatement. to tower we total as around -- leasing your related in XXXX. we a have more tower maintained terms for can effect Your same where the for second in what of is revenue question our assumption if -- our guidance change total in had the leasing for is previously the specifics, that's update, tower step question and is going. maybe Dan The

when in shifted and it don't loaded. exciting. total year-over-year of little that's So a terms pretty see more But to we actually to slowdown we've activity, a bit back-end be compared XXXX,

had activity my in a its comments, level up the of more a of leasing highest As mentioned we've to than XXXX in think terms we in XXXX I similar that And be is decade. was shaping activity. decade, level of tower

that and I of comments. in his the effect was walking amortization you're to, earlier just the is think, the uplift restatement the So that of referring Dan the revenues deferred through

as small on relatively customers its then activity, one across XX-XX national cell a the that build-to-suit Or given of One emphasis And you as tenancy narrower the that of about of more weighted it talked your has growth well evenly Fiber is on Is split. initiative? subset carriers? kind

as the activity think in I where XX of is to focused, are going as think, focus top about of top as preponderance a they and the Similar markets the There the focused, is currently. ago, the largely deployment, in carriers comment capital in capital our levels XX, industry. -- U.S. the a is the making -- minute is was Josh, I across my

most That's the colocating. of they're would where So be. colocation

would be extent ratios in being to making beyond colocation. the To higher terms bit new a built the of we're little that assets relative investments that,

-- would a higher out go would rather activity that in seeing. draw have that terms among So distinction assets, I drawing from obviously, we're But geographically legacy than assets customers then our we more distinction core, increase. would newer of our I tenancy, levels wouldn't additional of as a draw and of the type

Our with & next Synesael Company. Colby Cowen question from comes

and you do companies as is, there's your DISH, Great. Two from year what's bigger questions. a happening T-Mobile-Sprint you think a if merger with One look you out the about and think now plus own? are business specifically just Crown it build-outs to they terms tower and those relates fiber their your fiber for actually business opportunity given to in of opposed what where Jay,

being we ultimately then year revenue? XXXX translating of correct is a period back-end might see in And secondly, And that you you have have for this actually to around there would into when commentary your by up of that potentially activity see that guidance? the terms producing your to don't that if proved imprint in more loaded, time, end risk

tremendous of of I I And and question, your assets scale think -- the you standpoint, look on outpace a Colby, on think still cell and amount the opportunity, going nominal kind dollars, we fiber be at a have side. from scale will standpoint. XG small move there's assets opportunity purely from from see just a towers tower what from that we as and if the the of to we Sure. into those XG,

total disproportionately time, there. of relative because to activity yes, be relative the comments as the I capital I that assets density will investment think of we networks, to and we incremental returns move the on though, the move size amount towers the in required fiber and returns, do think, towards benefiting the on the the as total my around XG over returns we -- towards of the made we've

And spoken the have the and opportunity about why business. we're upside a kind and that that to Dan lot of in I leads

on time. in an on more these our step return, the X% as invested of than kind in towers we've to as returns to yield, cost come X% cost assets, think, returns or cells gate. significant it's valuable really a assets the whether we our and I over are about across is in we that X% yield delivering incremental believe more I X% Verizon-AT&T nice today tower from And continue to we're initially capital than attractive. well that towers as that equity close capital what got the to it The over growth covering incremental assets think Sprint others, they be covering going as do of get out the T-Mobile very beyond fiber that see to is but change will of and and to those those to on capital to Our are side. pretty -- increase see or going of the very around think And time small unique to change and

in basic the how back-end would way of of and revenue There about the sure year for always our looking operates about go of nature which guidance up we buckets next are year. order our with that kind To given our of back to forward any come real question think to the count we a X to year, sort outlook. and second the making we're of them your for I business

signed previous The is the we in year. leases first that bucket

XXXX look that during revenues year's air but related signed we we of to during the XXXX, received So the your then on turned at and full XXXX during all leases XXXX. question portion only a of

received year turned in lease rent months we'll of lease We months to only X So calendar receive from October in XXXX. XXXX. of but that XXXX of in we rent on XX

that on. in turned significant looks those that leases were growth XXXX like So from

The second now XXXX, timing sort we bucket leases to know tower during signed given about XXXX. how through takes the long us we they're in of to related activity that of takes leases, is to it on And going turn calendar of turn year and through halfway air XXXX. that on

to to had known leases we're just those They they're be We where turned what be on. been going have So we're already those those on to today. leases and We know paid they're no scheduling XXXX, out but contribution know signed. rents going.

to bucket turned on the that the half do in we And contribution is towards the pretty outcomes in of of if is be the of we year though, the making the of is third lower of, most Those quite ultimately back relative year, quarter because through have what do or are activity third high then it. the may basically leases the the the bucket, up a smallest not give we this a year, at visibility terms at And process. on will by And that year. will the working we leases on range far of revenues. this will we of the totality, on fourth those today the level, as really our we're we portion that's them. end that for revenues guidance. those, outlook some could turn we go which known that's of generally spread air of make bucket, is And that with not if on this don't why timing of but point. for calendar of guide and happen come If we the wide okay, It in revenue of end in this come more come the well, small to as relatively well, it. But perfect

be for calendar probably XXXX. that's year comfortable we saying gave think So total best to way about pretty we're we XXXX think going how similar to leasing activity to our the and outlook why the is

point that totally So are that go being in ahead. your if you --

ahead, please. go No,

I was I understood it. make just of just -- sure kind

be at guys into the anticipating, quarter see increase that it that you loaded as back is range -- being you more as X you point that in or wide year come way next likely will, it Jay to the through was -- in lower that back-end the the that are you're end is. that don't the still translates was making So if activity, you if

the That's to calls out about we our And way these it's we to we start when zoom why talk putting tend quickly. together get business, the we about really think on correct. outlook, and

of turns October the to because the -- impact a -- total start So we has and return. in more or January long-term very the about talk about XXXX, license those the business, in on we'll little whether of then nature whether XXXX on talk of much year,

growth And reason are positioned trends about by investment, quarter long to kind i.e., things spectrum operates. growth, of not how more data we terms Any and the coming, dividend the driven is of those talk determinative I look. of really one to what X% landscape, We're of data entrant, on decade-long is X% mobile are of what why of I all point -- new what much signs time the then the a business is like how our And towards over growth annually as back additional a and greater assets the macro kind why period of in it's relative data, a at look for need much the that. in activity. circle growth

a kind And pretty towards We think back the incremental the the will we'll good the is range we year that plays be of see of we've how given out. outlook think activity what year. over and the regardless we outlook, look business the But the half think dynamics trends long the I in of of the where underlying the fall of of that term. really positive range

than the the services Colby, leasing. more to on only thing Jay there's about volatility talking was on that was going what is tower our business add I

may activity where anything that XXXX. gets impact come out, So the would that's be, to would be happen, could that And comes our -- pushed it where if we it -- and and into business services if there. would

where but see come -- the that's We guidance, coming Otherwise, pretty the it -- we have with So impact. would it. we see activity wouldn't don't actually you comfortable back. affirmed would our we feel

Our next Michael Rollins question comes from with Citi.

could. if Two, I

tower, every $XXX customer If to from you to and a to much business. after we think including you for -- pocket? of much The one just that your do network economics full people in gives any how the $XXX just of on network cash away services expenses, back the your services, first like net complement is going all walk investments, of of those a how that keep basis, all of the get the income for statement or about the reinforcements that augmentations

that net And back debt accelerate is your get path to to question glide mentioned the to glide try that equity flexibility augment then you the using increase contemplated investments? you other Xx or second path to Have leverage. to

Yes.

is some regard come in cash would the one, if we the on with So you first make what after just would say I $XX out $XXX, services of that's say neighborhood to business. the that the Mike, that we

what by -- through might changes, get would debt have growth I that we to On the amount fill dividends path, we the committed that to our we leverage always between and and EBITDA. on said, will end as to by we've capital that We AFFO. XXXX, as and we to of we're expect EBITDA of we the we expenditures EBITDA throughout to the amount year happens of out, I and is believe, the back rating, based flow will capacity back gap cash Xx pointed that equity, investment-grade Xx that the way that we to year. we increased use then the If our something have as get generate the glide a have and we generate any say

investment-grade in have open, believe, we'll have the always we we path that order at works. But capacity do leveraged glide to to that we So to we committed we point, but rating, this and option maintain it. and that are what need do

just asked And I which there, -- want think step Mike, the is I question, first stepping of to take question, the kind back question the back, think helpful. I you around it's services just step think the and economics of -- talk further the about from services we even little maybe how and a our bit components around do rental a business. about site even

earlier rentals. us rent, recurring in of his discussing Dan cash dividend deferred to it's whether from current activities and from services, the amortization related dividend revenue to our level. grow The prepaid was or current pay those the that all that its are from receipts enable We site the comments

term that grow and X% can think industry positive the to mentioning comments over during As we've dividend the times, annually on we based in the we trends been know, call. X% my it several referenced the you long I've all

payments thereby, dividend. investment form net fund and growth new CapEx not assets our to costs we and in both And that build services assets. comes essence, the CapEx to spend for and with our growth. portion of things, are a But our to improve need to in existing customers they required payments, for other These upfront these reducing pass us the necessary to of upfront our

what we business as in that expect Or stop our those the if about all funding dividend we're current think currently growth reimbursement, would than will, a much another you experiencing. if margin, way, level the our would then associated continue cash CapEx, come at services, the its maybe our said of were entirely, So dividend. would And down to level. I lower to don't

And nothing there's based indications cash we'll of that need changes the that So or here investment asked payout we those historically offset more current then -- the the dividend make. net sized growth kind the about the on elements size help dividend our are net dynamic. just that and business. recurring to are We the our as and restatement capital components the size volatile the we that cash, question, of that you of

Prentiss Our next James. Ric with question comes Raymond from

question. on Two quick then ones, think, strategic and I more restatement the one

$XX up And of million, revenue year-over-year? much of of the XXXX amortization the do million it amortization side goes XXXX On grow in that, to now $XXX deferred like would thinking right in restatement, XXXX? that level prepaid from Am amortization rent, of how into we rent. I prepaid then was rent expect

you're million the neighborhood to yes, through growth $XX is is, first, that $XX XXXX. your So right into grows again to answer of and for in $XXX that the million yes, XXXX, And would million amortization. it in prepaid question over further, rent to It XXXX. We right. goes million anticipate you're $XX of

amortization the amount $XXX prepaid of into around rent million. XXXX So is

side. on about those AFFO, which help you CapEx capitalize an correct? Phil's asset better question, not depreciated, a But does cost tower items talked sense. And question, assume term. bit CapEx Makes long how into it gets growth To restatement, make the is, would little you the because the then the and other is it be I put goes that on a

That is true.

for then Jay the And CBRS interesting more Okay. topic. one whoever, or strategic is another

might just coming out. auction And put talked to potential thoughts June capital on you interested? be people You've as What outdoor, in see that that indoor? much indoor a there someplace work? and opportunity CBRS more A so lot in CBRS at systems looking bands would to is is Or auction coming that your not up developed. about of the

We're we opportunity, the would Yes. applications. think excited I there's that long-term brings. CBRS opportunity and about say indoor really both for And outdoor

licenses right, opportunity initially. and you're be the bias It's applications going is watch to private these be and to these of will the interesting initially, think there. what I towards indoor auctions -- some the for

be spectrum, that the there's for We will long there's fiber, small that also and we that the that be public infrastructure that both spectrum tower the use deployed, the opportunity term. going own, to think opportunities open that around cell to side, us on

component CBRS, The same. of the that's

happened that's needs As in the the terms gets, deployment of you of own. what everything name that spectrum, it in spectrum the deployment know, is we regardless past Ric, the infrastructure of from broad of

growing So venues may well think over that to maybe, meet used applications. for and we beyond and it think look there's outdoor more data, be time, it mobile indoor, we that's likely will indoor spectrum applications. be or but at to the biased initially, towards demand benefit And

Our next with MoffettNathanson. Del from question Deo comes Nick

XXXX a be to the coming to consideration level is look relevant peers? won't today. activity remain like it, finer I'm amendment able granted to we you know point you at that understand to in part ahead, reason on on customers. comment trying if to a back as T-Mobile integration-related you put a I to But acquisition specific monetize of that rights as think don't of the capacity First, your the there wave as same any

I anchored monetize any this been was most burned significant calls. a those we've that No, our conversation earnings few the Nick. to part, had for since tenants transactions. Sure, there's reason believe the But It's we why that. through of on our rights able on be topic a don't years space won't

had think was I time started virtually, generating case talking new so that's in we frame the was today. they the as that somewhere tower, touch it still additional XXXX about that, every revenues we the tenant And and that

transactions any that. would've that done haven't changed We

think are can that's first-time levels coming installments a around form of think and and And -- the as be new of from to XXXX, the touches, that form first-time as expectations installs. revenue. that's see or new activity, driving in incremental of XXXX, both result I amendment I see going elevated you activity of results So amendments we whether those our

Okay. That's hear. to good

bands bands are Second in higher just a versus trying that bit given the are about versus you years I frequency ago? small one a guess of it taking millimeter the on midband. the like bookings degree cell small talk that mix primarily was you're which Can deployment, today, pipeline spectrum underpinning cells. what the wave today I'm to to few understand

went I bands adding lease-up that spectrum deployment. initial bands cells think we oftentimes additional initial cells run that spectrum their will, deployment a geography, millimeter beyond will out were the of used initially, many then across given reality for the small come only one band, build the back band start they that and spectrum all small using owned. us, first and and carrier providing the The And into for when business, with their nodes small that where see if carriers a, will you we cells add thought on same additional across wave. fiber, be the areas bands is are the in people would of thereby

cells. nodes the the would built and we've about the that But majority, the are point wave at we're not small of built, millimeter XX,XXX almost deploying XX,XXX midband have cell We're where number vast small we significant spectrum. of of both as that the all talked numbers we pipeline, those that in be the yet

about be only that upside, that you cells When we build-outs, if would midband used think we for the would fact assumption the will. spectrum. that's of under and underwrote that XG I be unmodeled small kind talk deployments

assets. we are will those things in way unmodeled XG, the millimeter that used be wave for the underwrote and So that upside

Yes.

small tower that, some of of part to the think because I is carriers congestion. Nick, the offload cells use

the and a with towers can And onto a So all whatever does of the because when those that it small coverage similar lot putting similar has, are cells that there tower require tower. one to would people and tower cells then up the again. useful band on the in the capacity go bands allows small gather takes become happen area,

bands, seeing spectrum across it is talking about. as Jay all we're So

UBS. Our with Levi from comes next Batya question

the staying A quarter as amortization side? work And growth to questions, Can on site the couple rental the really And right why amortization bit installation you the onetime came secondly, any first the X.X% of restatement. on the being profitability contribution? lumpier explain there that of that just opposed of then now. in service the tower the from you business side expenses lowered the mentioned the soft of piece? about onto a goes how the little services organic and for if much quarter, talk Can were you it margin

churn. And lastly, on

there? out bps churn think Any items about call XX I picked sequentially. to up

the the rental asked become start I'll first services rental site revenue Because you question site of portion the they, modification with lease, now become portion are Batya. a on of a therefore, opposed we the deferring revenue of to as services. the that services. Sure, versus

site our -- the it's and this nuanced is this works. accounting and OCA And to where up because we It's revenues the revenues. reason treatment. is we ultimately these that went discussed we where is we a way defer So amortization recognize auditors end rental defer -- in how were the part we once that accounting is with of that with the

growth of fourth related basis XX site the restatement. amount it's in probably in or points quarter, so the to happening to rental that's revenues that's regard With this

do You services want profitability? to

Services.

Yes.

weren't that -- we to there we not what or side, to any in onetimers negative the services drove see And going I did can have either for an the statements historical expect quarter the the We from what the that forward. we in any quarter. the On is the profitability positive onetimers outcome think reported. would you

in churn reflected its then we about terms received of worked around has I quarter. the think, -- notice of churn, results. churn, And you yet it, through but last way it we've of that asked question on talked Most the last the the wasn't that in

a we that in So to that you that down those guide After business revenue, end late the of -- of year be similar comments annually lower of that I uptick X% we the back of XXXX, would of churn that around expect will have was away impact went through made year expected. leases the towards the to comes And churn. our the the XXXX. in buckets in the see X% get full amount

we the that. off end the ago, of So to go that more and working it'll beyond we're level a carriers very churn years back from normalized happened consolidation the think several

tower that churn talking And that, just we're that there. to about is be all clear on

So of Jay was towers, everything that on around the increment side activity came the business. because the said and was tower that

question comes with from Oppenheimer. next Our Tim Horan

are tie the point? in in the from on and And maybe are you this competitive fiber office out you trying centers? you the areas And building at to other where And kind what services, focus follow-up. you're of environment? leverage about I with on buildings, fiber just apartment I we Can services? ability seeing ground, little the conduit seeing are the buildings, talk out anyone build that into you other [indiscernible] Can just overbuild can guess a a bit? And a to areas had by you quick

holistically we the as decide When The fiber total of driven we on said, fiber for we what areas believe opportunity, to of will wireless could of what necessary driver, what be. so based that we is terms what us around of wireless to look believe on opportunity be Sure. take our owning primary on projects, necessary the interest the heavily by think determines specifically at what look for that return fiber And fiber strategy cells. will what networks, as at small country be we in are markets, that assets, is. we we

on that universities, to of we component the wireless from -- the institutions enterprises financial is can where then or along route to for from that, may maximize a other we we And necessary then whether our assets. around a hospitals, strategic capture we've at much or decision look start though, wireless. path driven revenues return we not of fiber. want possibly that want as what's determined assessment it's that there, large then to As the as interesting standpoint, from by need use to But once

the us asset, use So and the yields sense do. can asset, increases it many we customers it's as get makes return possibly for on to that to

people any the seeing to assets existing material capital their exist. The to are to places where of expensive find really there, extent other we an the We're build. nature. overbuild there's assets don't that And allocate not assets

I fiber order this meet today. plant no think what out has become is in that need cells there's small to that's ground build increasingly clear necessary can because of the the amount in of

And leveraged significant the there to towards we go to be in dense, why doesn't opportunities because just build places where it's fiber to out build investment any of it and strategy, it we opportunity won't build much built needs see fiber a fiber. entire us U.S. And because so our to be will is high-capacity for we what are, exist the broadly across today. think -- new it for the growth opportunities exist. We just more the and terms doesn't acquire in don't

flow you XX% builds, that where market? your have entire share you that on clarification, a just do is think -- small infrastructure? the And is Or

And it have the years. we we've entire several time the market one it's think last for over We operator. more question, measured as

Our will Kurn with final come Spencer Research. question from New Street

of So your you share from total disclosed tenants. revenue your

AT&T XX% skew down do you that could provide some breaks if any And wondering on You've got small color cells each for about of Verizon, I you towards about Sprint. XX% carriers? the and T-Mobile, how was for specifically. of from

in very side. general similar across We're answer is is it is activity of the cells side. tower on it's The seen the terms on small carriers cell we've all -- of the small what

on of that and just few outside are towers macro shift some the Sprint that years? then how thoughts over backlog focus view small stall your through provide demand years of networks. Okay. of your and their It towards you seems seeing it? growth? are next enough you it T-Mobile their over likely to one Would ramp the your follow-up. as T-Mo And can Could to Or Sprint next impacts couple grow integrate potentially the merger cells ability you they

Yes.

bet. You

I they'll of Sprint same said both where -- of located think will publicly, I X to that site. what a look as rationalize overlap, factors T-Mobile broad think -- where they there's the them sites terms are period happen of have long time, will in and with on they some of over they assessment

will they rationalize think macro over sites I time. some

portion there, will of probably you and as As sites some leases be the think know, about long-dated we those network. have they rationalized pretty

the as on spectrum need acquiring in out of bands acquiring that because take But they'll is that more order Sprint going new will build we today broadcast lot think macro sites of the spectrum from they're they're part both broadcast to to and currently sites, to a side. will and is and that spectrum macro amount be cells. of the that they Sprint a not transaction, certainly by sites well well of out. way And small that both on we're of and may spectrum their that plays they think broadcast through positioned positioned the being components small we very And a that broadcast those adjust very the that network cell combination capture of of both happen

XG build-out As that broad assets positioned well the I think building done accomplish to And build-outs. the them and industry with them, would positioned around opportunity our XG. demands out XG relative I whole really T-Mobile from what and back very to we've of to goals I think are that the about I made comments the coming kind go with way of with help we're their the

Obviously, expect growth runway another about be sets to and we're even call the more in for joining of long year I excited this we the about another and is cycle up excited investment flows dividends sitting our big XXXX just on that by customers of as Well, us of XG growth coming. doorstep we're as the to want significant thank, morning. cash that everyone, for

you morning. for talking So joining thanks to the soon. call this Look to forward

you, and Thank today's participation. concludes for This you ladies your gentlemen. call. Thank

You may now disconnect.