Crown Castle (CCI) 22 Oct 202020 Q3 Earnings call transcript

Good day and welcome to the Crown Castle Q3 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ben Lowe. Please, go ahead.

Great. good and Marie, you, morning, everyone. Thank for third quarter you joining us our review we as XXXX today Thank results. Dan Chief With me Castle's and Crown are Jay Crown on the call Chief this Executive Officer. Financial morning Brown, Schlanger, Castle's Officer; supplemental morning. To Investors in crowncastle.com, we section have throughout to at the will website materials refer aid our the we the which discussion, posted of call this those uncertainties may forward-looking call which are from risks, will vary certain results actual contain statements, and conference and This to assumptions expected. materially subject Information Factors potential affect filings. results the about which factors our release SEC is could press the and available company's sections in the Risk of

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

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

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

good and Ben, morning, Thanks, everyone.

more full plan consistent our press in the XXXX and expectations night, earnings capital three ability generate need As growth; the another financial XXXX balance accelerate delivering growth intensity you the to of X% in the and to XXXX XX% year fiber, points our per positive in bit our in increase track in in dividend; fund for And quarter XX% that I earnings discuss for saw while from XXXX. AFFO press target. release: Dan the without our with a expect share we we will We on outlook to our highlight capital the and consistent reduction of to growth this equity delivered detail. results. remain is would in last to results X% in release key issuance. the year our

of dividend towers to cash of attractive Crown focus execution and markets top morning in on and both have growth on want generate end per XX,XXX this timing is against history unmatched in year, highlighting more and fiber annualized value stock some of we to per as Steady consistent flows growth, compelling our our consistently business build return. per the to my market value, this model to common our near-term portfolio delivering strategy continue with the I the share, long positioned by cycles, XXXX. near-term in increased in strategy and of both high the route miles concentrated resulting while come. of years to the strategy U.S. the strength long-term and than maximize share comments for our dividends for Castle dividend outlook shareholder to strategy approximately delivering So to in XX,XXX our our XX% in we believe our I through line significant shareholders. share, $X.XX provides various growth growth AFFO opportunity Despite challenges creation

last X% six years of yesterday, the we per grown increase the rate dividend share. we Over the a more growth of at have compounded annual than and inclusive announced

target growth Lightower points the grown when X%, have XXX by we to per average X% we on annual since dividend increased acquisition of to XXXX our X% by Additionally, year. in basis the

cycle, decade-long for as believe shareholders the we see our our we invested you assets through a while be investment of long-term, can of as four, billion generate $XX we benefit portfolio our to what will have great we assets expect returned slide a positions XG. in over us total Importantly, on shareholders deploy as also customers will to from have dividends, returns

mission-critical tens slide According market it market, for least to risk, billion, the world's go shown are One investment, demand all wireless that to our of nearly amount In this capital invested market growing XXXX, of our we XX% with of with U.S. the the fastest-growing of represents because disproportionate over of capital additional investment beginning long-term spectrum. we and to both attracts significantly networks billion $XXX sizable a nearly and principles the so focus after of on while increasing serve of the The with network of returns. superior are amount CapEx XG. cell shared believe next-generation deploying carrier of upgrade density customers today's to invested of the thousands are because for have wireless XXXX, an wireless on their opportunity, invested approximately of is from U.S. networks in networks than market just U.S. since core couple wireless strategy X% to their the five, leading we customers beginning the example, of CTIA to long-term assets $XX have of mobile the population. in billion believe infrastructure fundamentals as attractive. as new networks develop To globally our carriers the the nearly last $XX less decades sites, representing wireless

Our began XX assets we while more ago, multiple up customer, compelling for returns time generating we share a and shareholders built could that to we leased customers, acquired over years each our tower across assets. investment providing as than those when lower cost

assets we additional denser from the increased The towers, the growth the combined usage XXXX insatiable broadcasting market a Further Since carriers spectrum in from of demand. over invested network get value by basis. carrier flows. from yield cells, their to sites more capacity densification our ample site XXX,XXX approaching order XX% the persistent nearly reusing of of amount now through to XG, customers that they impact on point, in total data network shorter tenants a data The end been add key increasing on sites customers tool our enabling the spectrum always the by As our law up densification rapid the XXXX assets times to to The and the we recent in capital their generate auctions. in are deployed carriers the our than small architecture The support will plus and physics exceeded small investing wireless mobile new the that particularly have have XXXX serve respond demand capacity, higher bands that the data leased annual in with the to networks of cell. was locations given is XX%, for tower users, customers -- growth a shorter states well with mobile much network closer out time, with growth proven to site demand coming to staggering. have More upcoming wireless XXXX, evolves deployed new alone locations. used is where distances. began more as growth wireless in has of proposition approximately most to demand, so cell spectrum the total wireless a macro cell is spectrum on as from this continue, to number the generate has and XXXX XXX,XXX greater XXXX. have requiring future of that out wireless recently, spectrum and over on To cash in at XXXX existing data site to we the in end incremental as used XXXX XX data most

sites to additional on densification But greater come. we expect to cell to drive network cells to our play a in trend years densification assets radius for the role forward. leasing tower of with the shrink, continuing small expect going We

upside would relatively significant our assumed During potential of cell commentary. assessment millimeter-wave our a the our small in in and industry upside week, limited wireless part July, and in march density iPhone have is we models saw low The Last important that bands. ecosystem support I our milestone business cells all densification small Apple cases. is because toward earnings announced lead beginning to call an signs estimates XX to has talked show sold compared and network downside. the spectrum greater This U.S. about carrier that potential we when toward that

and to much you regions XXXX. were to surf for time, unprecedented but At the changed. of carriers XG And use music, are share with in were announcement phones accumulated lot without the their investments kicked People communicate at much offered play. the iPhone the texting. wireless the the era listen and cases for At reminds used that that of the really introduction original exciting and talking models in the a the networks spectrum of in there U.S. While pictures thought wireless Fast each gigahertz of dynamics world coming. cases forward speaking. new now launched supply vast iPhone one band. of off identified scale. are were capable a that This me other and a and could Ringtones The download innovation limited importantly, had sub-X wireless phones Apple no the Web, in capacity. feature communication not to launched are more same personalize device. U.S. to new the iPhone other use yet spurred no deployed was the bands at the time, limited in Then world of could requiring to spectrum, your

than again the so believe portion the the case about total U.S. millimeter-wave that up yet and Because made to is gain deploy participants with of to of bands a spectrum times significantly months. will wireless opportunities coverage currently spectrum the and Millimeter-wave its although spectrum hold, billion XX. with at RF no at use purchased in communication investment capacity, millimeter-wave because available upcoming that company that scheduled it important to original cases. And nearly in more speed more which increase XX% the have is did to the the deployment. deployed is the a auctioned XX iPhone can fraction cases they the than and our characteristics, be but the is use be other spectrum with to XX front opens whole higher the area. we iPhone, spectrum to market a In revolution iPhone the with next over now approximately that's capacity it of its use the of auction, C-band iPhone use with XG. certain geographic all needed already to will original few acquisitions of for have new likely carriers end provides of As one spectrum significant auctions. in set considerably plus was accounts started business aggregate, more a And $XX for take up This be And the access XXXX, carriers more exciting

potential substantial we that small industry-leading XG the in cell will to XX% ultimately our and small cells complements a The majority the upside U.S. towers. using growth result, than XXXX Because AFFO that in excited average we to mind, three-year business are just we believe rather of expect tower millimeter-wave per and share $XX that business about deployed are provides be As all strategy. of small investment with our our investment it XG With developed in across approximately growth spectrum we the weighted investments, the benefit of cells described. invested the cycle, is comes billion fiber cell earlier during the capital. when on a life small much I XG the without

for it's each investments high cells immaturity customer customers, those lowering the that and towers, capital will in ultimately we investments, Similar shareholders be while these shared across generating small fiber that the to is leased is invested returns operating encouraging multiple initial that ongoing the already have Given on yield making the as approaching a we business X%. generating up assets. capital cost current are cost our and of a to

yield to investments time compared lease-up less contribution from gradually Based to yield of small of cell to assets we existing small of of the cell tenants discretionary our current years, leasing, contributing with increase X%. recent over pursuit activity. our In assets, expect XX% to nodes our we construct investment XX% the $XXX pipeline of as in we colocation in expenditures expect in X% for from activity, an our million when of to at have initial for XX% the construct to We organic offset to to anchor XXXX, to XXXX. benefit builds by our plan accounted increase XX% decrease opportunities anchor the on the XX% capital levels mature on of of fiber the approximately colocation XXXX to remaining projected making up

colocation the of scheduled intensity projects expected. XXXX. cell is to addition generating strategy that within our expansion In this in are and growth believe that that in large multi-year in an from completed inherited fiber several year, we benefit the reduction yet small expenditures expected encouraging increase activity, to decrease acquisitions capital to through forecasted be is we contributing in that the We our capital another fiber the returns there small business sign cell are

highest demand growth. owning what To are for strategy wrap comprehensive a deliberately our growing balancing world to we customers our the expected wireless decade over and growing out to from for for in wireless infrastructure make are our capital dividend up, data. to the of communications assets that XG So a We by in to offer and small to investments next build and the cells towers drive customers future believe assets. our investing enable of wave shareholders best and to risk-adjusted deliver the market and solution of benefit that all meet the investing the end, largest we our is will returns in the

the while dividend target to X% increasing for our X% meaningfully XX%, above investing long-term are per year. by future, our is of We which

successful a AFFO to help to on focus that deliver they our a consistent navigated growth I with our share closing long-term we As through pandemic and per space out our and growth for moment is significant carrier year, how XXXX in have in thank consolidation team another target. a want take well

call the briefly over announcement yesterday. like I'd Before mention turning other to also Dan, to our

as Board of of this in Tammy Matthew appointed November and year. Directors, Jones Our Thornton, Directors effective

I'm On qualified we Board, has and personally and with our over the quarter. Tammy first of turn working I'll With the of to and progress made the them transition I forward both. Board experienced these addition the to process significant behalf two last phase welcome of Directors, the with With all Matthew to to announced Castle excited Crown that, Dan. of highly Board look call

Thanks, and morning, Jay, good everyone.

of we XX% in to least results. to As generate and another We our XXXX, expect per Jay remain allowing AFFO share to to us per at XXXX solid delivered XX% growth on by dividend growth mentioned, in AFFO we quarter to in X% increase share track $X.XX. accelerate

EBITDA year. Turning Site AFFO compared adjusted grew the X%, the presentation. to period the to X Slide same of and quarter revenues XXXX while X% in when rental third increased last

During the we resulted experienced recent an in on in meaningful increase compared that towers services activity from quarter, to quarters. in a contribution the when increase

improve XG their XXXX. industry start ramp, which in invest We existing a as in increase we expect further networks activity and as our will in customers carrier investments to believe earnest

However, late occur expected activity a activity a on to occur we and expected later rebound shifting we slower continuing the towers in full than bit is in into early with previously XXXX XXXX. the portion of to

adjusted lower a Slide by AFFO and capital revenue expected our These we've I interest the result As and $XX expenditures. outlook by offset see XXXX million, changes of primarily expense on are at site result, decreased X, rental timing $X midpoint, will that in EBITDA million by by sustaining than for the million. expected $XX shift partially mentioned, you the

negatively contribution activity contribution towers site by approximately to from the $XX services rental million. revenues approximately of million timing expected in change $XX towers and the impacts organic by Specifically, XXXX

shift straight-line well million as $XX Additionally, impacts our of negatively the offset interest approximately revenues and changes $XX million. sustaining expenditures. million These in expense million as lower approximately the extensions fewer lower capital $XX in lease than previously combination are by in timing by forecasted $XX in lower expenses, XXXX

approximately small organic approximately from approximately expect X% from of and more to now we rental contribution revenues towers, from site consisting XXXX, year full X% fiber for XX% growth result, cells a As growth solutions. than in X%

to X% EBITDA and XXXX adjusted to our per full grow Shifting X. X% to on year also XXXX. share around over Slide grow expect outlook in AFFO about We

with to late of approximately $XXX or not pointing as consisting million growth, XXXX, organic on We from in include million build worth material $XXX begin from commentary. X% out, consistent public cells site their DISH to contribution Networks approximately does out expect of X% solutions. wireless from that outlook that small our to rental network It's fiber XX% from contribution front growth towers, and we a activity growth revenues expect X%

$XXX Jay when to to to We capital analytical approximately discretionary expect lower capital as expenditures $X.X anticipate decision. rigorous we cash discussed lower fund us billion apply capital each our approach XXXX, with approximately As and discretionary compared earlier, to flow be a incremental million XXXX debt of capital year will expenditures in higher combination allow we totaling our risk flow budget next the and cash with consistent credit growth free grade capacity profile. investment investment

quarter our undrawn XXXX of until $X.X with times sheet, As we years, on debt of balance capacity a maturities approximately average no facility. EBITDA, the it revolving billion finished relates and weighted the maturity X.X X to credit to

profile maturity minimize on maturities closely to cost approach debt driving Our more risk while result our focusing of down base, and a for match capital. deliberate financing the nature long-term asset of of a is overall debt our our

Turning to to AFFO million $XXX slide X, approximately growth. or of we in XX% expect XXXX growth $XXX million

to the cost the that includes organic X% in In typical the tower of the of an on in expected combination preferred outlook tied in annual related costs stock expense the fiber as items, rental third conversion revenue of million. dividends to that primarily growth An $XX approximately paid $XX next expected and revenues, direct stock reflect by to increase approximately million $XX million to contribution increase services associated well incremental in with as contribution to will of the reduce XXXX other site contribution primarily from expected to quarter increases increases preferred occurred year activity growth that during addition living growth. escalations

XX%, We XXXX discussion. up delivering the capital open declining questions, are additional we we take expect in make plan So to by things key away we want without business capital and our fund growth, need for intensity to is call our you increased the while fiber consistent our there our equity. three the before for dividend from sure

Looking of us all I'd to to Mary, networks, risk-adjusted cells like best further components towers, questions. provides to fiber believe shareholders. returns are we out, call communications And offer deliver that, and the the to with which our small superior ability open integral for solutions, our opportunity

Thank Citi. you. [Operator of first question instructions] We Michael take from ahead. Rollins Please go can our now

morning. and Thanks good

morning. Good

you Good activity. further tower morning, into delve the if curious guys. could I'm leasing

holding do going within prior million million as activity. then $XXX believe, And it million that the shifting at from continue XXXX, pace you leasing the new to $XX dollars $XXX for as guide, over opportunities activity years to level So, customers? better I XXXX what's and was total next look back out to to from you relative into look site XXXX carrier the your get we rental see potential the few at Thanks.

Good same one. the because it to me inflection try business expect going starts to gives the always suggest picture all think would is carriers continue And of pause commentary a points, forward. consistent the at Mike. bet. what in across history growth data really You I the is, there I steadiness see that business. that we capacity order we'll morning, Big short say to the the I both figure historically, made to is last back our a thing but would shows over and carriers Anytime going I and looks think road, looking allocation anyone the out consumers capital of the in investment not that the also improvement a of in to provide the the network. and long plans networks investment decade capital for activity a to And consistent at

about the And that of runway is look forward, think most long so, as we we growth we're excited see. I what

out. long On path millimeter-wave, I the growth up the potential consistent the the gets iPhone consistent over built by time that over as then, XG upside, it's that upside likely made seeing XX to the think comments in of a expect opening of of revenue the see tower and we growth of terms significant side, around And decade. probably we coming the would we driven period the most XG

into Jay point will compared to which that pretty in And seeing of tower good we're without And we that just about. that's think XXXX, received well is I think, pretty X% be to talking our investment business or look Mike, it's important our out going peers. that all growth

translating growth, of good think we're be we're that with good XX% growth up I into So, set good tower and moving growth. share a really a That's we're really AFFO upside AFFO lot per and -- then from where there. into pretty in, to XXXX

small more distributed more seeing the on different you follow-up success? that are concentrated just reflection seeing the that you're more you cells? Or across in I when of for if you are seeing colocation And colocation is plan, When a describe the markets? colocation already opportunities XXXX get

will in the a the both XXXX Yeah. we assets built period And we we're time. be ago, reflects pipeline, couple a on putting colocation in cases. have over that on of The years acquired colocation into coming obviously of probably that nodes that put and most

see several in obviously talking obviously we we're in business, base the system over lease-up. of new they that and of those related years then, and the And XXXX, So, that assets reflection and at it's terms at long they we've higher of lease-up a time comes goes look look that with about intensity time. often, several And the or we time years colocation both capital down it pipeline increased intensity is talk for lower anchored the over as capital we ago. also a of investment And those would and anchored over built last intensity from And associated system assets capital acquired we those the growth, reaping were we've XXXX as assets. new benefit as the the then the on up. to colocation colocation expectation about the built as as over period yields of as we

Thanks.

We Brett Goldman Please go can take next now our from Feldman with Sachs. question ahead.

And then, a clearly average have have I leases the be have And about outlook they come what pretty has on at that to non-renewal Sprint question curious, you're next T-Mobile expecting year, your of midpoint the for leases. that at amount what expecting do site to T-Mobile I'm of non-renewals MLAs look the next that I similar considerable know shown the with are will for them? have I of When align lease its actually you year. Sprint terminations this actually your question. with desire the composition taking and they for you Thank with up Yeah. the when you're your through assuming decommissioning. time you peers you is, year. range do a

If that, you to concession. making allow be you'd were a

So, them you've better a sites feel how that off you it? the about done where this been customer like you. in to a to past, think allow that whole be might get to relationship trade-off in you or the take you have you do willing off make you've might Thank result revised made you agreement sooner? in What of do as if

take Yeah. Hey, Brett. one. the first I'll

XXXX, about had coming stop we On into the network the that XXXX at churn a that effect rollover by that the up churn seen of of into through end end assumption going we acquired the had XXXX. year this last before talked would

within though, how of X% end our long-term X% in it thinking specific you churn about and XXXX of that Sprint, lower the lower model in of kind is rate. so, around we churn our going forward. churn the to as Even some assumed have we're And that churn is out, pointed

be inclusive Sprint that's churn low at the that end. of to So

shy with about your specific question, and On we specific from customers. our Yeah. away obviously second deals Brett, customers talking

that under provide is And deploy that we network. of off be of shared that terms the question. beg being of cost customers customer how to which the mostly I'll their and value So, value economics lowers look able our and we of intact. Big think healthy solution the proposition, to picture, in relationship, made ultimately a about that the the really it's of to with each customers, regardless our construct

across both value that's different the market think time, on tower and looking, the trying customers, well And have. the we side, cycles. And tower small cell we're on small about the as to the a that be on the thoughtful the appropriate I side, both that yield cell I true through we're the of number side. at an get And proposition value providing same side holds look invested making so, to the we landscape, proposition as sure we're as capital on

about as our do contractual work we Obviously with laid with the years deployed now all we'll have remaining leases T-Mobile ensure we in getting and we've the right So, we to of fashion. out relationship invested five the capital. supplement. access on And continue an them we're in the the the sure provisions have on and the have contractual make to appropriate to expeditious get network assets returns they to carriers that

you. Thank

Flannery We ahead. now can take Morgan Please Stanley. question go next from our Simon of

to Great. opportunity your millimeter-wave. it to business little add to cell the small Thanks kind discussions Good time. to talk the in hear the backlog momentum you a lot. what the around pipeline about and like Can I of a the, bit over XX,XXX ability looks think was in backlog

like a lot focus companies on that concern Verizon self-perform. some there's think will I

them the back those see the really are evolve, expect how a start related to backlog do you going going then when conversations how know to to you I so hoping near-term frame? momentum could And cell that really couple or is, Thanks. medium-term accelerate start that see to the to in years, and that of that And that we so, in you change Any either of construction. you the shorten ramp? in small time where were pace

morning, Good bet. Simon. You

our On we're continuing the them. nodes the around deliver conversations for with ability about have and customers perform to for need really in their small and them to pipeline both small encouraging capital deploy first cell our question and cells,

density, just and fiber do of with we're to around more without more really and our small And by cell having this you're that I of both longer-term think wireless think blending industry, look the encouraging as supports as think And fiber. conversations evidenced talk week increased component the broadly the networks. of of can't really is, you're and integral that customers, I both Verizon both And are view kind an fiber at seeing And more wires, which AT&T made continue. millimeter-wave conversation think, comments the trend you've wireless. some see going as I and the I in heard about people environment in terms necessity you so, our of site and cells the that that I wireless this without with customers are and of

So, I addressable the to what the early in market. think, look of all point like, still we're but addressable to signs market, total going that's of an increasingly terms large stages

and comes Our invest addressable capital. capture of where both think, our role to I we've historically chosen that market, to down

think on we capital in As highest produce most the We markets the of top invested you returns the U.S. capital. those focus know, the have in potential to the

investments top So small markets they we those think focused future our the because in for best opportunity fiber lease-up. cell we have

what the to think in kind top focus to investment do in want capital. from terms of to markets U.S. pursue where just fiber the chosen in most going of U.S. growth require cells the capital remarks, that need rigorous than will lot the for in and because the in our places carriers analysis believe more small frankly markets to we think saying, locations are choose they're the listen highest I in markets is toward. I And about return talked top a probably really to there beyond the that's carriers going think, As thresholds. what and allocate of prepared request the they proposals meet U.S. we there. Dan we allocating in deployed we've go about the through some his We to are of the well capital we not

there that today third are that think long what commentary I to that both expect discipline to how meaningful the ultimately the where think would into think to be they portion future I the our the going market to where who and for I big cells need, continue of States. where we're returns we small carriers the leads the is may Crown speaks going other be in enter to parties capital a also self-perform and So a extend limiting And just are. willing addressable best Castle also

out, play we'll over if think see those which I things two themselves time.

accelerating has On anything and the to cells self-perform thus fiber change small in and sense us continue for of long it's the through see And the extent, therefore, the really horizon a the to to small the the that cell that figure the fiber where that being deploy where meaningfully that. second for to is see long addressable to that better to somebody locations the returns I don't future to try past, the built some great have of think and there intact has remain I around doesn't has is make think, that place time. plenty the obviously a I worked you'll there's do would same significant invested that there faster. And extend capital. around in deploy that will cells the small capital out able locations the I difficult hard just say, we really -- for fallacy. to carriers question network idea in to to and is day on the it business planning for been we've instances to are I very to opportunity deploy of your small in a ways us in be U.S. a market on able process moat and cells. and that time, far. process And believe I to working get at where at This every found process, team are easy said and period we zoning that. construction as very to do And go would

future cells. for around capturing to operator is there think advantage real small a I in place opportunity that

we're these faster timeline we long meaningfully. think a seen dynamics thus pretty to way out really of utilities the cells but working small customers, to deliver I planning that haven't So, with every zoning drive far and for the change a and working figure try day the to

Thank you.

can now We take Jonathan Capital. question our Please from RBC next go ahead. Atkin,

notably and than, you monthly Thanks. if I question start XQ on XXXX, the about activity those, front-end you expectations you deployment leasing, throughout loaded? your to DISH around sort from when Thanks. about I that expectations do comment and you So mentioned the have timing any say, July a kind site then of the then, on that expectations. see sense XXXX XXXX mid-X of you stronger us tempo give had on any some of a wondered saw portfolio? or about Can say, around the gigahertz And macro was the your August? the cadence of

QX, see Hey, have then we than is, and would overall we activity Jon. think I back question what the our is On into can going QX pace slower just on the half, into your from XXXX guide expected. Yeah. what at results XXXX accelerating a albeit

we of into in XXXX into increase the leasing places. was You increase services then, that is from XXXX. QX. can in And see on that from just overall again, substantial One in QX that relatively saw activity couple a

earlier I talked placed levels Jay an timing in happen. being tell requiring and it's it increasing that about -- really of networks operating mentioned with of that the wireless and being we've when customers demand all up. the to hard of and think, overall we change from comfortable our to type of activity will that always on the expenses that's -- increase feel amount But any exactly required as always, the keep capital --

we it month trying range. see will has that's we're being So what I our tower demand And mentioned in great quarter see continuing into for seeing to Jay into we're forward. – us that X% think we're of be insatiable a going our ecosystem place moving like as substantial on remarks, to a always about accelerating that's And now we developed what for is growth that -- said XXXX, XG pinpoint to hard. earlier, we data prepared opportunities top been us a his excited a generate of as for that

what again, a around want T-Mobile, certainly thinking of deployment they're let plans question, their network. DISH comments your to on to I earlier and to second my about timing speak about own Jonathan,

– it's on given into that to a we contribution outlook, more would XXXX. it's not public public go contribution as XXXX. draw thus in certainly commentary they've their the our expect own a from DISH from But assume think we in So, I of And based commentary, significant we did fair far.

if And then, of finally, how be who how things things on an the to operation side with might Jim going organizationally Young's are at going and announced looking departure, forward, kind you're different, all? for, be just into update run any

who that's us did Network. to both that firm search part role, internal ongoing. terms to help We've that of seen had we And look in our We a of at no quality updates for outside and external the but we hired good announce specific we what ability Sure. lead there. ability has about COO feel candidates, proven and that the candidates who I pick we for sure and your do looking against of make capital has an would for for, of number that process at Obviously, what returns a – this size, to time. question large the organization a invested we strategy on expect? somebody a to the looking and put we scale to an execute of somebody our are of and good drive understanding strategy we've want

specific no we'll and you soon as let update front. So, make decision a know as that beyond we that on

you. Thank

And question ahead. we Please can go of Barclays. from now take our Long Tim next

you. Two, Thank if could. I

there's it's in a business, fiber Obviously, something interesting had timing that capital Just you one probably the reduction intensity. is on and follow-up there. some

and that on has just this a compute Can second, just talk just multi-year you. we data it? if have Some edge then, of based on or is toward will have And play of as bit in peers thoughts Thank a to you event Vapor that you centers, as got you move kind Just compute, should little involved maybe so we fiber a how but there? think tail curious IO see something edge higher you deal at wondering, about into level. your timing curious a look XXXX that? think to

Yeah.

to line XX maybe going cell we acquisitions to intensity, In XXXX, done out we into historically, that lead in have Are throughout finished pointed that with projects same based two a not? because small push to as And with fiber come relatively the And lot as small in top markets And in up fiber we longer-term the fiber up. when yet of we could lead solutions. to situation leading that are And markets, where want wrap where lead we terms going small our will wanting looking cases, that is, more out, we XX begin with fiber more or coming fiber A them those But a we cells. finished some that that's had are And with, capital with many in small we markets, of we quickly in our One think no, cases fiber few to things. the continue a called solutions, those we is the these were on market then cells with of we And inherited we believe top cells with not XXXX. with we're do a places. solutions. business. there that to solutions. we for that, at is the decision. with strategy on impact cells building and invest of we're is that answer for part Jay if most deals small continue

there. it capital we're So is making decision a longer-term type of allocation

second small is of historically. from of where had that capital we they for the have proportion increase out are we reason less that density nodes an cell called the In terms why in been colocation

year, would poles that's so to XX% akin know, this because was builds go out, coming And XX% say intensity And just the to looks production, into capital of we to about unless, builds are bookings get is pointed colocation. historically. that of happen already, have more quicker as Jay not I so like of already backlog As and looking and down. XX% more that, those remainder you that, anchor XX% anchor some because would it which, anchor XX% the would our we XX% long-term to nodes, we're builds, fiber colocation replace course, faster. existing that as the

on change get but may that, looks we backlog, some bookings historically. our that would it like right what seen more say now So if I we've

would an a edge question, is pace. company. you did this I look world at make using say, if And compute remarks, in and move important referenced To which investment Vapor edge at topic, unbelievable providers the – referenced in it IO, toward as And we becomes compute on the your those is wireless. to amount I an is growing really And as as of continuing my users consumer-driven overall data prepared well second delivering as trying lower power increasingly the that in are latency And what to by to that and moving cost reduce of even a applications. out becomes figure both to that And important applications networks as industrial of of the data. as wireless the we as think compute as is mostly way doing beyond the materialize possible. user compute ways today close storage network edge as traffic

opportunity being of it's necessity fiber, So, both macro of cells, the small of indication networks. think It the wireless there. by the everything the of highlights I think in and compute. fiber another edge I sites, And there's network connected necessity of the a also lot importance in next-generation

it and to the the we've going there. think future impact the true for be traffic and We in nor networks about do across give of our the a increasing what then toward made. and we're data upside, of It So that we're in positioned us terms doesn't results have XXXX, compute, meaningful that any view excited that investment investment the but required get excited we're the the our order well we opportunity expect a today just investment there. to about wireless the in of portends business the but on rest in does edge in not

Okay. Thank much. very you

of question go next our take David of America. now ahead. Please from Bank can We Barden

much guys. taking Thanks so the for question. Hey,

to it and XXXX company being if to one respect one of represent terms carrier that customers of major XXXX recently. half guide that that quarter some with anything competitive direction. but a dynamic one signed business realistically Dan do MLA to yourself. XXXX, your the with might I have a outlook? that of in carrier -- C-band in Thanks. So this, was contributor kind XXXX there took you signed of be the anything and competitors their second for aggressive from deployments an first the if And the one apologize I How like Is there your entirely, back that XXXX the contribution in marketplace? question of on business your supernormal contribution very carrier the second MLA that Last the the might with then out had about to because an competitors to could guidance missed that willingness of just what shift from or in competitors speak you steer about of

the to our to order David. to Thanks, first that level take carrier try meet outlook figure specific to don't we Yes. give in the question bands of look I'll customers. on out or is specific think where according allocate and spectrum what the XXXX is We demand we -- outlook. to capital demand. customers that that's are do What to coming going

the the from a that going And agnostic to I there's want will going deployment you the not C-band demand that the more is purchased ultimate not laying in like months whether is pointed that which has deployed. deploying been through nothing end it purchased or spectrum would users. spectrum, to increase of leasing ultimately driving not more be to we and to anticipate tower spectrum activity We specific into meeting our just a at that demand any XXXX overall looking that's that --as is specific to see important in we're is, building that's fallow small we're just before. there in the end what's add met towers, for through and going to densifying think, will return And out, see in of specifically being on C-band would whoever or how XXXX. and few the tower there lot and beyond, expect or growth necessarily. C-band generating that owns recently for deploy aspects market cells, attractive had is it but going upcoming spectrum one that some makes U.S. be additional generally so point sites, over user We're time is

in to look the the very a activity over at growth in benefit of years are question. about double-digit the And the backwards levels big of last that I is dividend we idea normal step network a business and at is, we've in growing describe the I investing increase, would in look the that XXXX And just what's growth X%. grown of be activity. really in as we clip from across dividend we'll second topline think the revenue translating XX%. your and think XXXX if all as and go about in we're four about back going increases, that. dividend into landscape to on what's expecting those the think attractive we Dave, happened if I picture And we're I carriers, talked they environment this and some

seeing stay an capital side, terms lot terms that seen acceleration on of the long part we the a to toward to tremendous have shareholders, place elements best really there's to view growth. runway of future like it increase in say So in of return of time. an top-line in a the going is, we've are about in that looks We're extended growth of dividend the is this for there going the of it shareholder. and that be period a of And to

then invest that it way through that where growth. and our further along translating in about we're cash into is capturing has investment we to place And excited then that by in by which pretty consistent runway marked our business like really ahead trends our a shareholders think and continuing of the of of can terms among continued historically to the I there customers. so pretty investment the that think returning And looks is dividend assets carriers, form investment I'm and dividends in long been positioned

Jay. Thanks,

go can with take And next Please our Synesael we now Cowen. from Colby question ahead.

on questioning. Great. Two … and is of getting small Hello? rounds Thank some me? Can cells One you hear just you.

Good good we you can Colby Yeah, can, hear morning. morning. fine. We

Good morning.

on wondering us and give if you can for updated I Just the was backlog. numbers small cells, install

which said I you installs previous guidance. mark have in that were point think guess X,XXX would your installed the which hit was you is in another this the XX,XXX at and backlog, guess, for I already in -- quarter for XXXX, XX,XXX I

And for as today? and installs sign beyond accelerated to guidance, is for you there with any guidance? expectation in of what risk in your which the you. showing also, that? that you curious, confirm XXXX guidance XXXX Just And the in then, an result could just is MLA you could any an XXXX secondly, XXXX go that one Thank currently of churn your are in customers, could

You bet.

on away on with everybody we to, XX,XXX square on your XXXX in of where came into just nodes. first about small terms question, kind are nodes So, cell air. of, We

about back we that the with would specific contractually guess means I raised We XX,XXX the you one number year XXXX of nodes year. still that could an we happen, as expect we'll a that customer expect to exit to that that the and us, the into there committed to of this on-air equivalent XXXX a revenue on make extent a roughly That second return because in XXXX with about able XX,XXX exit outlook, XXXX. any with and XXXX, on activity as we similar XX,XXX On the customer exit be our an value about was And air, again, wouldn't, part have expect range to then the gave they pipeline we obviously question different is, we have I being we time contracts. to area. completed. discussion so there levels But, get to allowance your we'll were would that comment by end to on of we specific in have of things get nodes to around, have.

But never that to materialize have never there to the So, us in would would say some I question like would value that. to a form. theoretical other be

into of the of guidance balanced the possibility go view to quite XXXX we and didn't as And similar give we're of could trying year well that pluses other a we at would to we range And go well. to that you if then, any give year. expected. look that trying give we if would minuses the end us, number I outlook. potential a as as And So, go low to help of gave to a we're outlook as the things upsides things

obviously some longer-term ago, value, a would will, actually you allow that XXXX, particular potentially there about if to asking given do mean, if years you'd over be to near-term see extra And extracted a could you moment question I have question, do? offset, you in why, to MLA. just situation you outer David Barden's know customer would there the XXXX, et that? where in therefore, company value that a would an still is cetera. But you but ideally be That will, want I'm

basically impossible. I Colby, is in that think answering the theoretical

economic are capital by a to that do possibly together base at we working can. heart. we site. our is ensure And that XX-plus investment have as customer, the massive able on on opportunity We yield that maximize the thoughtfully a compelling we investment with years. goal expeditiously run the over to And animals as to to be put to they And that go

solution to our boxes, the the And specific theoretical at in assets. in offering but value on the than most to and goals, customers real out the any as return a hold the we're customers be to can flexible we a as impossible shared same more makes on really value those that's return we maximize that. those consider there and time is trying maximize the So of sense, ourselves of good happy both to aiming both to sharing we tick for frankly the to our if two it. can accomplishing be, And the what be asset,

Thank you, it. Got Jay.

bet. You

New We now Research. Please go from can Kurn Spencer question Street ahead. our next take of

Hey.

a tower on guidance. couple your have I So,

$XXX you out that XXXX, throughout with? could talk million to you start million exit level, a in $XXX just of expected the year? you cadence to that the the about than at to Are revenue it With guided higher of you

we Yeah, the But year. a half we the front of the flat do the generally back little year, year. as more half bit in the it's pretty through in activity the of typically case, see than

proportion applications it bullish last relative you're Thanks. it. period. It's really cells. what will, enough you of to steady XX,XXX up some increase maybe to a deployments backlog Or five years the bigger small annually, of you you've foreseeable which had the in XX,XXX I millimeter-wave. reached backlog volumes than number you on, your that you to your the follow-up around small for to are sense Verizon just whether year, interesting we've pretty seeing getting you've And that sort point, about a at now, is were aspired this building nodes And of guys Thank year, couple over we remained millimeter-wave months one XX,XXX future? steady-state that you. are seen just ago? of a then, But Got or a cells Could your at of also, year. with nodes have deploying ago? a times around comment sense node on this are six year build on, talk more And the for ago

the is at cells. And back site. things else provision spectrum than been business. but where convergence just a happened of I sets coming -- the in think of growth like think away to toward actually particular, it, environment that millimeter-wave to think, up of those cells there there and the actually of spectrum look then future in -- more what the as together, those of specifics deploy accelerating be would had a of cells things whenever macro is in devices play of capital to it infrastructure going estimates Yes, I And invest look it's the the industry, there spectrum, that I I of of time it's those in third-party three and provider. own good be small stepping spectrum, was consumers the And able suited for that when to well number just really over our and period whether would over looking commentary, time it's reference available, who spectrum broadly has or signs the deployment comments, was trying to small carrier are come hands the anybody at and small three really I an believe But in my as that from industry the carriers I and years. an that in I three things a growth go out that to could use it us tailwind to

those pie to the the because I that. So, growing of spectrum, think availability the think our is use is I of of sitting devices overall and capital and drivers of in right band that heart spectrum business

kind earlier the think tenant having I not a this referenced of to remarks that well as for the I able a around are upside in build wave, add of we I deployment of really that And think, a to assumptions I in it's more that's period about how addition that really And that commentary to there and systems, with conversations question if happen. my And over investment and we're encouraging my the be are the a going thought the of and to you're questions these going the it small the capital. of will XX-year up so, prepared really be millimeter there happen, time. made lot to assessed in in cells if question it's end when the about asking going underlying we anchor sets of have longer when to on we'll the we up one mind, build of is both fiber, near And that conversations plans that in their term. carriers, that

So, where an certainly, an could we there that. be acceleration from see we environment and would benefit think we

I the think of the happen going business of heart growth right U.S. a coming to that's over massive decade. trend sits the the in in

Thank you. Awesome.

questions We given will the time. take more two

Thank Please Prentiss Raymond ahead. our from question We'll Ric take of you. next James. go

how third to [Indiscernible] around I from quarter? back up go come great And good can Jay, here. was questions Thanks. also third a you Nice really gain. increase. dividend the morning, Good want us the tell you see Did won that XX,XXX nodes about in A guys. to Colby's, many couple of to being quarter?

Ric, go Yes a in is, would say would we It with expected. what what now than did went I line It have little XX,XXX up. there's less on-air. probably up right

thought to Jay from yes, we like the happen, some But, air, the on of year as end what the was at So, put at on going to expected. XX,XXX out, track we we're to beginning we the what going of year. just pointed XX,XXX

And quarter it's a less XX,XXX. now a weren't commentary We'd was last little more little so, than than -- XX,XXX. we our say

your down. up. looks Okay. also appreciate earlier rent capital And be prepaid I intensity going received is talking about to It like comments is

CapEx CapEx to about million went looks like is now amortization goes like net amortization? It from prepaid another of should prepaid that gross item? So, maybe thinking non-cash down XXXX Are $XX a XXXX go that more. think it down, -- non-cash might XXXX. in to million we rent, what up looks even How $XX-plus you happens up

Yes, Ric. that's exactly right,

You growth those million numbers going prepaid about growth about $XX in in have in prepaid million got XXXX and right into we all $XX XXXX.

Okay. one And the final for me.

guidance able were the guidance were In out think you in investment CapEx million? we and about sustaining guys on $XX terms we should about out and XXXX trend $XXX the on How that? XXXX, about should midpoint think XXXX take how -- should about it in over $XX of I the about because million million. think is in there, that how able sustaining CapEx to sustaining for XXXX How here million and the you think side, was $XXX update we long-term long-term in take to and

long-term we're can is Yes, period. asset, that and take number, in the creative range a growth How is on I maintain ballpark. for to $XXX number, seeing low that about a million the we about any But in as in is is in low time, is number. AFFO a capital delivering some reverse, it CapEx that there what could try think and million-ish assets be pretty trend very how what and any $XX sustaining sure expect we get efficiently $XXX care is can have is one we how our capital we we business take in sustaining and think make the can we that, possibly to you to given be. we we should really required to that that's can I'll in out and be over given period, possibly you're base the XXXX, do we both in that diligent run we It's that to best as But the sustaining to know. on wanted XXXX what as would is, million

Great. Have a guys. Thanks, good day.

Thanks, Ric.

too. You

go take Please from final Nick question can our Del We Deo, ahead. now MoffettNathanson.

But cell cell prior number been But very it real Thanks since you've putting it's and small you in. while a for Maybe build cells to customer small encouraging. of the bookings had Hi. the ask some questions are regarding to a me a small report. way. on different strong noted conversations

of For to year not your OK? go maybe in have persist how level outlook? being long that on? dichotomy maybe Like before we would just replenished going in it's there's something we another that confidence Maybe the lumpiness conclude, without else bookings, backlog change the sort if

Yeah.

the different that as about the commentary number look think we obviously think and we at around we made factors I opportunity environment and cell the growing of side. a small

and business cells. time, the be tower a business sub-market. the customers way in and in I generally is of very different of work. terms small the generally not awarding portion It's cells. business, going least than think lumpy at more or the significant award by a the the basis They're tower at of are market-by-market chunky small that way small a cells to forever And on done a one leased a assets that's

the it that's that's really So, and will and I way. only look as anything think I lumpiness chunkiness as the at look just the stay thing privately encouraging. I mentioned, not but would don't at I I the Nick, think the is business encouraging, nature other conversations think, the that of of tone than And it, have of

a from in significant network that up and lines investment coming broader that and cells. cases with need business amount think that's middle innovation I is and I to it the our deployment those around benefit the intend. in As -- And look as that, the small of for that And then, to landscape, the I around I the my mentioned doing, Apple that the extent they deployment comments of at fullest the small of make in front of as of right use terms the the sits the order what devices making work deployment carriers commentary in on cells the we'll as is look public are spectrum.

to XXXX you the characterize Okay. deals? as bunch when Would comparable you back tone conversations the signed in of a being maybe of big

to compare today. there it's conversations. think of opportunity to the difficult In a I what nature scale always different XXXX, was there of is

way the today. early result So, the have probably awards, that not as to and we're are some in starting we I would looked of we think addressable signs in total said, materialize seeing a at the same market XXXX, it but of

smaller than larger of out today, So, be market the our because it that have. fits conversation we're think around, what's comments previous number with what we total investment fits That the my available of the the conversation is and of fits in market. scale totality strategy and nodes carriers That's what then, criteria. what of the in to that's the addressable having a there the our the XXXX. scale much the would need, and we and back assets opportunity And of in terms that subset was around,

XXXX. is what in it been larger of the conversations the would than So, I today scale much have would indicate that

it. got Okay, Thanks, Jay.

You bet.

folks We're talking there morning. we next us joining call to today. everybody the for a to much. know to answer thanks the you to, questions. get to to forward weren't Well, look few with Thanks so able And were Bye-bye. get I Okay. this free we feel to try that happy and follow-up to back quarter. you

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