Crown Castle (CCI) 20 Apr 232023 Q1 Earnings call transcript

Good morning, everyone, and welcome to the Crown Castle First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today's event is being recorded.

At this time, I'd like to turn the floor over to Ben Lowe, Senior Vice President of Corporate Finance. ahead. go Please

are Jamie, joining you, quarter have Schlanger, of we our referenced crowncastle.com will morning, Thank this everyone. results. supplemental and website Executive Castle’s Great. the today and Dan as Officer. for morning throughout aid call the the us be me first Brown, we you Crown With Chief this Castle’s Thank at on good Jay Crown Officer; materials discuss XXXX morning. the Financial in Chief To discussion, posted section call Investors that our

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

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

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

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

us and everyone. morning, Ben, for the Thanks Thanks, call. joining good on

trends demand with the that XG were to XXXX outlook. We our changes our see positive in expectations first quarter continue to underlying has across line driving developed as U.S., results and no

strong press growth interest combination minimal and the our we our to projected despite rate expect in in will discussed release, Sprint and which throughout result in the dividend of a we network underlying XXXX business. a impacted environment, As by XXXX, near-term results growth rationalization be higher

at allow per we deliver believe past target our to per to Looking us year. share X% of on growing discrete our strategy long-term items, will dividends X% these

this invest our money returns highest strategy a that new shareholders to we growing assets generate dividend. to consistently growth. revenues and infrastructure returning in to grow by the risk on will is adjusted additional By strategy, shared future aim executing our Our deliver through

the in is networks Growth by the our This has the see business with the U.S. durability their trends we investing driven demand. and strategy for of cell in from in and in need keep substantial rapid been data by networks spectrum mobile of underpinned our customers sites XG pace underlying demand with The growth has investment the consistently XG. deployment more through persisted to

by on capital days wireless focuses XXXX. times of data since mobile since XX of X early support Slide increased XG the a spending demand that to factor has

vary wireless deployment While capital per spectrum of the industry-wide may capital consistent, approximately averaging acquired, year-to-year, XG as particularly was year. spending throughout relatively billion is new $XX

data that small shared back increasing of by to During maximize both the being With investments this the and with to acquiring new new keep essential deploying have customers of our infrastructure addition up spectrum benefits lowering time, in priorities later with cell in cost shifted demand we and investment business model, sites, spectrum of between us which our customers of forth growth to has XG a value rollout, to towers keep stages to in helping significant deployment. XG. the critical our increasing in began the play added growth cells, that allowed generate throughout our up role we with these and for our helped the the proposition with This demand. customers the with

over and on and demand that rely and connectivity. has how we for a wireless for of technology expanded generation provided mobile capacity devices, platform time, created it new innovation also data expanded driving Each for connectivity our ever-increasing use

revenue growth XG, least the we support trends these innings to ability will tower our are our at small still early expect and continued we cell demand investment XG. of result, we to era XG in a and spent customers’ acceleration – deploying sustain network the exceed positive they our in believe As what underlying in X% organic business. Since

of XG X%. two with the at led we scale, growth organic tower the industry In deployment years than greater first of

Additionally, nodes expect we in drive revenue small line the believe current years, our on-air over XXXX. doubling cell cell we will which several double-digit next small into backlog growth of provides sight beginning our

at our that is since compounded delivered share dividend growth how in we long-term X% current of or of capitalization per established growth, Looking our dividends our XX% our share period. billion XXXX, strategy overall per $XX shareholders we've target year over to market returning X% to X% performing, per annualized

And able our market ownership. to while for is risk best to continue U.S., in infrastructure by we on the the results world been we limiting deliver believe wireless which have focusing these the

the Over to data gives the growing wireless deliver ability development U.S. unmatched in to the with long-term, our the likely of us from opportunity decade X% X% long-term benefit our XG in to of durability growth share, confidence dividends and long year. on combined target per our scale per

the potential over for returns time. total We a period compound about to yields believe paired currently this a growth shareholders provides dividend with of X%, double-digit that long

And over with the to I'll that, Dan. turn call

positive positions tower extended and another is our good organic to Jay of operating XG us development continued The highlighted the for cell Thanks, business small were expectation deliver with morning, year solid growth quarter expectations of into the in in the the Results full X% trends addition this year. accelerating our outlook during of for by year and growth. everyone. our has nodes line first revenue year and with unchanged, XX,XXX activity XXXX and an

The the contributed nearly quarter on rental financial in results Sprint site rental growth adjusted EBITDA, X% growth in for to our X% X.X% adjusted or to AFFO. billings, growth growth Turning generated Page and X% in organic cancellations. rental revenues, impact X% when in site growth in billings We organic X. first site the of

Sprint for we last As that discussed we results business. our are not in in financial typical some result the expect quarter, our cancellations will movements

to $XXX full of million. million Sprint $XXX remains approximately cancellations from for $XX with payment expectation the accelerated Our an year of unchanged million, impact non-renewals

within offset by non-renewals. Sprint business, solutions of our million we accelerated million $X the first $XX in During quarter, related fiber received payments to cancellations

We as second continue and a the expect XXXX. to AFFO to $XXX quarter majority and expect in we high to remaining the accelerated $XXX of occur payments watermark the represent second million result, the EBITDA quarter, the million in adjusted for in to

of expect flat X% solutions. of rental we cells to in includes unchanged growth the growth When X%. Turning year approximately site rental site to growth in outlook X, remains EBITDA XXXX of billings towers, site Sprint AFFO continue consists growth growth fiber which our and for in X%, X%, revenue full and of the Page cancellations, small and billings of full adjusted of rental impact year growth X%, X% adjusting organic

last our the have purposefully returns Turning managed to activities, several with years, best shareholders. over aim consistent the we balance our to adjusted financing deliver risk sheet to our

available believe of times investment support debt-to-adjusted well grade we result, our approximately our As total net years of needs a XXXX. with credit financing with strong balance in EBITDA, is facility, XX% maturing debt a our less rate positioned five line fixed sheet future than $X billion under debt, maturity of of target leverage XX% liquidity revolving through our to eight in weighted average

prepaid remains for billion approximately with billion CapEx XXXX of for rent. Our expected $X.X of to also year gross full $X billion discretionary $X.X net CapEx outlook unchanged

portfolio existing to to see assets, to extend to believe target on deploying our us with So per assets and our excited position dividends fiber growth tower opportunities we will long-term expand we wrap of the additional also capital we and up, runway share lease while our X% that remain growth deliver by to X%. our

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

your question Our at begin Stanley. question-and-answer first gentlemen, today comes Instructions] question. session. [Operator the time, ahead this Flannery with from Morgan go we'll and from Simon Ladies Please

thank the you you numbers. update and at year. you and implies will course Great, gives acceleration morning. Perhaps to that good could much about with expect If leasing several nice over us on in talked just guidance that over point of leasing, I next could the very start you've this the reiterating hit those guidance track confidence you what you how quarters that a

next pulling doubling over small secondly, years. talked about cells then And bit, a few back the you

five, the you the Thanks, know could years see lot talked for TAM different in the others and there XX You for lot over with is what I market, out. update out of about addressable you demand you you've Perhaps past. a small us time? numbers total the think cells just about that a

morning, You Good Simon. bet.

morning. Good

On the the we about in year question, where are feel first standpoint. from good a leasing

I great towers our cycle. business first mentioned, and as a in, The comments line with mentioned Dan the cells our of majority and we the in visibility in have vast as expected we first quarter. both for quarter of benefit in for is long came we what small Obviously, the

over pretty so to And that balance we'll revenue when as the view growth see have of the year. a good

If half, somewhere XX% second year. the so of level the level the and and half bit year that's the most think kind will or historical XX% different in half year of be go in the and loaded years year first to years, see little half is first between which activity a balance XX between first the ultimately half of year this would part back total think second and we it then little year's is over We our we of experience. in most loaded second the the than from of we for half a this a last more

in that would've last for suggested by start revenue from visibility as we year, unchanged gave to the October. guidance. expected originally as Coming we the up with growth we're like as looks when expected and pipeline it's pleased So where prior good at numbers and our were shaping guidance

question the we're we small my saw towers what seen driver of more commitments carrier as your think of and site of about is cells the to XG, XG with in big number in I era. I the of that of conversations On the come future we network. serve in a and as seen the around small can't in saw densification here, that frankly, this as the XG XG that significantly that densification mentioned what from cells, amount well We both, significant at second thus terms that end for need suggest just certainly opportunity that the having the than comments saw during that far is we've customers have

we out we're a we've of of know on those early will see far the our going I that are will commitments the then don't that co-location, interesting is business a portion we total will seen would think those improve of the – we assets fall here? and which opportunities going the we've that a from it's be double the see suggest us growing whether or that XG. quadruple time of but And that in I seen combination in assets to already on own and be customers even thus yield addressable tell market. see to to trajectory to the So going are certainly a

and portion will as then or there further test not whether are on such out. think we’ll it drive it drive put not outcome have the whether each just through that or And to growth of of a expansion the dividend appropriate down returns will see the in capital for they're long-term the those we we to beyond and and meets of to returns rigorous equity holders come based expenditures that good our plays our how

Great.

what that at And key markets? of core so you’re still focused on XXXX is

Yes. The where top and the will way of seen the certainly top fiber markets build of and beyond We’ve as need outside the believe and thus XX vast carriers our related the top in all own the to those small that far cells that we majority U.S. the beyond. some out to XX activity the is markets. probably to XXX in build activity

see to that its And we what – there there. do to are if the but to And then are the follow believe opportunities carriers think there the we’ll that highest and wait will have what opportunity and to down come willingness play and developed. use, best our – we’ll we again return continue as

Great. Thank you.

comes your next question Sachs. Goldman from ahead Feldman Our question. Please with Brett from go

one solutions of on was investors the hoping this lot the Thanks sensitive bit of and could talk of for market for taking your we fiber lines. as more about question. business in economically going think a I what’s being a little

of get move the to in would range. rate million we maybe back you what for pretty the have far do So the metric quarter environment to about talk I is a second you look run into the year the comp remainder bit a at year-over-year was $XX at – a pickup merely this could which be market as demand dynamic a funnel gets if at know you. into obviously and like. activity, the below you the and have that year-over-year the looks And leasing easier Is that’s guidance your or half? leasing quarter, just hoping visibility I in the of that then into you Thank

On big of government, business good Brett, our Hey well medical. from your and morning, driver business first majority the education, solutions of enterprise. as comes large vast Brett. our question, as That’s the

We historically movements. that economic sensitive to not as have seen business be

medium sensitivity businesses and business. are that and volatility to tend Small much economic in not a base our Those serve we to movements. have more customer

So thus calendar we’ve balance looks with the year, we we’re seen for activity that customers. The at line October. in look we expectations that very focused last on pipeline the in as of the as far year the well when the of the types gave

part on first is answer also from difficult the comp quarter your following first in question. The but to question, second

rate of it. million run activity about comparison the quarter – in of of The in benefit had the out of $XX first XXXX

we current So apples-to-apples think expect of comparison. need pipeline business we’ll to sit quarter, in, expectation able when be where that both that the the that X% as now get to of grow the about an based you the back well as of at that We the that, we at XXXX of line adjust kind revenue by line. being to you for build kind compare as with that on our in year, we end to to exit

able just our capture placed growth core to and the our would data in that continue segments be to well wireless to not additional in customer will opportunity. core markets but the all need growth is suggest And of that kind services fiber data, data and

you. Thank

Our next Please Michael your question go with question. Rollins comes Citi. from ahead from

good and morning. Thanks,

from So going relationship an that like progressing? newer can us of leasing activity, of curious some to your how tenants in terms just back and seeing the on is subject DISH what the you give update you’re of sites

speak seeing. terms to Good to we’re the customers activity in of don’t like morning, Mike. We that individual

build DISH, as way with network. consistent times we’ve many desiring seen a behave them said I think have to about very a we in nationwide

doing are get them to teams and can air everything help that quickly. sites there we Our on get them

commitment in commitment and significant for very of network a around necessary terms sites a made to has the financial DISH us number of their that.

to sites carriers what them on deploying as at to committed continue we space the that our to companies those can Broadly we’re we doing we’re so a to refer we’re help And they to in seeing to verticals wireless are the see need get air. develop. nationwide everything that unlicensed that continuing of and licensed And networks beyond plays, there deploy vertical order infrastructure access are that to number or are looking either spectrum. space

see to short-term side number good be growth to got focused a in on And the the as the is capture team It’s that XG we not decisions and we’ll much a be as on market tend happening as small deployed, standpoint. in think feel that as our of used a some there Those spectrum of opportunities. opportunity data much both as capturing so by are meet market decade that about meaningful business minutes way but is the longer-term to more that our results, and next it’s we’ve tower will from well cells. another wireless that opportunities growing of over

higher can at end factors that versus you look remind guidance you that to us, at for particularly tower range lower what when of some you of things ranges range? to the the leasing the And of right are put XXXX, incrementally push the you can go the end the on the could activity

our contracted XXXX. When at the towers, have visibility we as revenue to majority it and is long growth we of comes pretty look

but we a bit standpoint good tower positively to that see our view in things to going would So rate of come go where year, unlikely little might we point from we a to pretty XXXX. as material calendar XXXX, impact a and as have and out affect we’re by have negatively this the run of year are into

XG in drivers the are improving in drivers The the over – the business, the So XG are shows in they to they the year. our biggest the in up we’d amendments as upgrading number get upgrading out of now that biggest into we upgrade existing you network the they’re on have of to biggest of is XG and and always form is of investment cycles this driver where go from sites to as their case the the the carriers update long-term site. this case

And happens would we then and the densification – cycle consumers required. enables that to hands adoption as devices be in of XG, the gets get into expect

stages, early majority activity sites those I amendments mentioned that in existing be still and which XG. to my deployment sites we’re the comments in XG, still the to the We’re of seeing as the of means upgrading would of

get healthy as minutes that to both to densification, see business XG. more The next and last phase have towers spectrum we’ll the putting spectrum we and is amount of the believe small we years of big future the significant trend and of growth work though of be. will several acquired be indication site start appears our which what driver deployed be years then best our it the about really into combination over And coming in for And getting cells. the is a a carriers and use line will that to

Thanks.

Lynch ahead next go with question. from Barclays. question from comes your Our Please Brendan

for Thanks Maybe morning. two on dividend. taking Good Great. question. the the

would available be range raise at to I’m years. hit buybacks? You’ve your target you the your wondering more to be dividend to suggested X% of it’s below use lower the end for guidance, target for X% you’re or potentially if cash the going inclined the to couple next CapEx your

about and picture talk morning, me We allocation. back about the question. how think Thanks the for about let think big we Brendan. capital step Good business,

to the we that We best because drives in it think operate the over business the produce of time. that business for all Our way goal think virtually flow shareholders distribute value that’s period the the to the long to of most cash shareholders. we is

creates creates our we market internally allocation. I that think case of made. make why in of around about capital and be investments, capital we make it And market capital equity scarce, for basically debt should about the to how discipline need market debt the And the to makes discipline think or to the these come scarcity lot resource, in order a It investments to the allocation. case good to

all distribute flow. with going we view cash the a start So to we’re that of

capital of does little up we really impact about amount spend the down or So dividend. not how little think that a it whether goes a we the

So target number the increase between rate that, of dividend over our press and would relate my comments suggest the in XXXX and I environment that’s over that’s items XXXX, the those discrete next around around mentioned you interest the that minimal rationalization given below the headwind we’re two that XXXX of network guidance in the growth to two and And release. of XXXX items for years. and the in we the comments as Sprint that, highlighted in our two over Dan and facing ongoing – the we’ve $XXX million the neighborhood that those

we’re you So some reason as that’s giving view the why dividend. to the

We’re set the dividend. determine view giving ultimately flow you how our the we where comes then up both cash numbers and the and will

this of one the capacity the question. delevering got July, are terms $XXX or other Thank Great. point a thinking just revolver? capital – are Maybe you or maturity about flexibility what you. potentially deal in this balance at If million using sheet in refinancing of you’ve of Okay. good just related

sheet the our general. Brendan, going think in I’m just about about to how and we back just – a to Yes. balance talk step Jay take revolver take

the for is capital for revolver, pay have We – we that the to that upcoming months look maturities, the ensure sufficient size the for or to need revolver, and any when billion we and so want we next have would debt XX reason we $X run a liquidity that to out any is expenditures we plus business.

have shut that to caught maturities our be want market. The And and behind there or we really to market times the our capital. a to off debt when down, bad we spend are pay position that don’t in in order is thinking where a access capital

revolver, that it refinance on remaining what the market is the how of $XXX on going billion to $X depends with maturity. So million we’re

take a what the revolver for, that which when of utilize liquidity is be would happen this would case it bad debt either We’ll in for if would out pay in really to place markets to market advantage what debt in are of access the good, down us on if maturity we them keep debt the or or refinance might revolver. our the markets, borrowings order or the reduce was

accessing depending maturities we’ve about looks not we dislocated to like be caught given decision is and debt any that’s over make years our which a so terms has a been feel capital year, debt last the the several in be I that to maturity we us in spent that this manage market balance life is coming total what is where But too our years. position refinanced what sheet time, the the we we of several think would expenditures. so a So like necessary average market good much the debt because have or last the weighted important and in to why all said, we trying really on

year that reason maturities that some caught of one at on we any years. would don’t one in get difficulty eight so focused us in been cause We’re number is that we’ve that stack with The refinancing.

all we really put So the about flexibility good markets, you into our depends the it the we’ve it together, when debt and but on feel opportunities put business.

Great. Thanks the for color.

Please go with your ahead comes from Cowen. Our from TD Greg question. next Williams question

thanks Great, questions. taking for my

the the Just back tower confidence range. you’re on X.XX on hitting messaging leasing to guide, X.XX

to and more going about mix just subsequently co-lo leasing to to spending. XX% amendment I a Thanks. And I’m give point you from what’s new peers in. of mentioned MLA’s. in then of as coverage move baked densification was a leasing? us of guide Can on co-lo levels. You And is asking of similar lot and that on your the that MLA’s mode if baked that wondering have at finer when of to out, your XX% I their we’re mode you was it trying noted how some versus figure much were with

question, approved in Good we’ve point morning, aside to this Greg. – time On year, customer the time laying your year, you in first to you’re That the generally At question point from if application to actually amendment, it’s the asking this kind will, months. received. at takes known application and six required nine that the of air. lease as the commitments when and on

by going at So end as April year, really just any good to a time, we’re we on air to pure we’re of of put what the from standpoint. the visibility given have in that calendared year, timeline

also as have in that the – not in only from our were we is the year. October commentary, contracted. to them growth of And majority have of revenue mentioned that working are the in diligently in we on Today, majority of they’re air. but we’re specific on. order all in we going So our contracted, We applications sites position last where get that to those visibility

positive well or the the the to one for the received just about we way balance the where as impact as date movements is and I point at either numbers this terms longer if because the we limited to of the your other, we’ve this contracted about our we to know way of revenues. applications really that the you’re year, thinking there, questions but to both don’t in good that feel visibility. of the have are visibility from So kind of answers or relatively both of term our negative

we’re and earlier a my your the mentioned of still On of answers, part this the deployment in time I one has technology vast in cycles specifically the leases, in question to of majority – and amendments to that where more at true new but leases. is in amendments the point the be cycle to second true typical we’re of in XG. is majority upgrade been activity past That the true existing finding

activity majority amendment So calendar far to going in we’ve the more really frankly thus of driven. expect this vast and it’s seen would year, be that the

XG, new work upgrades it touched And majority the And network. the with densify as existing to installs point first start they’ve to to time in begun. vast sites then their of order see – has XG the then that the where touched we’ll shift to on once gets towards sites they’ve

the You the can which place XG see probably for to delivering activity. discrete in order Those network some of that sites they’re of consumers. part are most is small best where cells, to they’re the see network for improve that increasing the that density infill in the

thing only that is or almost I would anything co-locations, there one that, didn’t the that difference add else. mostly, is to is Greg, all The they DISH have

So without what said probably probably an talking DISH went I I is as excludes it about but Jay saying, anyway. outlier, but

Thanks it. color. the for Got

ahead from Our question. comes Bank. Niknam with Matthew Deutsche next from question your Please go

Hey guys, thank taking you for the questions.

Just I two, if could.

co-lo First on sort the nodes you to either that small backlog the backlog to accelerated color payments relative amortization build. this the percent EBITDA of then cells, can on the maybe share before, are any and on got incremental termination spring of and from greenfield the obviously in newer prepaid of rent in this year XXXX. illusions of the leverage, you’ve benefits to was some there but some And

that churns million of loss $XXX the off. rent have of obviously You sprint tower

next So churn the those long-term maybe the we’ve five two context that sort talked a of to about do about I’m think years leverage how Thanks. headwinds, target you as just relative level? more of in wondering

I’ll let Dan take question. the second

of first the fiber. be majority nodes, on around we In existing of question Verizon. from On going we’ve backlog were to the agreements T-Mobile, XX,XXX were nodes the those XX,XXX co-located we nodes, that from and XX,XXX majority nodes have the announced, – of significant case T-Mobile vast those customer previously specific the of that two

almost be of And so – those would co-locations. would those all

that the frankly, undertaking of In business, both good that returns the over of have, the the through we’ll Verizon and of year footprint it’s agreement, that in that making that but put and it’s in calendar is a at in a combination analysis more as the of than – capital rigorous we over existing those going of about think the be co-location that to healthy here, time, a first drive as of projects going years And medium-term backlog, those activity co-locations good towards allocation installs. assets to we co-locations to yields customers that the build the short and weighted have. the time. first The And driving we the pretty – expand to XXXX the sure and there’s be same next finish we’re future talking may up returns. on couple the will we’re process time backlog out it’s we we time mix

the to we and you about X fluctuate. number debt said think target that is think EBITDA, point, is to of times our want true, And we way leverage were But on leverage Yes. we which does I that’s to quarter. our this close leverage everything the net maintain

to one-year back as a okay, bit believe flexibility some I managed to similar we’ve a we’ve allows the for seen we manage to EBITDA, years, leverage have and number years, mentioning of the years. close That’s there bit be above, to over plan the next business long pay us the time earlier. that below a long-term can little we that’ll but and the will us that if over bit of we little the for leverage how very CapEx, around above, we’re that believe that how take any into I think As we’ll have on last a that course past grow little the target. additional growth X to And as five five it our was there’s we times get keep that to we’re to as over debt Jay be several

you both. Thank excellent. That’s

Raymond question Please Ric from with ahead question. James. go from comes Prentiss next Our your

everybody. morning, Good Thanks.

Rick. morning, Good

questions. couple A

touched think different customers? I updated of your far XG kind together think of past major what an kind the getting have as aggregate number on maybe of there the the deployed? you band schedules in as percent do as mid of Is your us you sites you’ve blend carriers carrier

Yes, we the XX% a think moment north little of we’re of carriers. at across the all

Okay. it obviously And by carrier. varies

Exactly.

As you financial mentioned obviously, we commitment. the you’ve think significant about DISH, got

for I that was included think What’s the financial timeframe XX,XXX the on commitment? contemplated it be to sites sites. was XX,XXX

more making of signed to specific their with and plans. number we And XX-year we It that was the Ric, XX-year agreement because We us. commitment that that number, about talked gave than the them. give guarding that were they deployment we sites we about a careful don’t were

point be making flow it’s organic timing the have that that. give of impacts the we to that cash XX-year of would a important about tower as revenue think the component guidance they’re that’s around that a us. Maybe is growth So obviously commitment we the other

of so term the that our commentary the in to the to our made part are that ability being well our Dan made of view X% that at both able that deliver longer And longer-term. the that commitment tower plays around as to XXXX our able outlook I line, – numbers have and as over grow view of at be a they’ve into both

[Indiscernible]

to Sorry, sites going add, of us Ric. That how contractual as that I was minimum just as they’re many to understand think a you time over alluding Jay well, regardless gives was the contract I grows on. payment.

be think amount more we’re of a just early that’s opportunity provides going So network a us them been and on our forward. going because do an have good on, it is as the they grow a view for possible believe long-term because to to to us, as the provides not that to to network can this that we the do. many has go more but planning on to want sites, an very I tremendous and And on in of the value, we that that opportunity sites up investment us for sites relationship obligation And what sites of us have. understanding we XX,XXX so. our that they’re But also on

payment So up sites to not XX,XXX they those just that’s that sites the the along on. with can go contractual XX,XXX goes minimum It’s it’s important.

Since maybe Makes in revenue. Verizon not T-Mobile T out, type almost and teens customer? from the XX% is a safe it DISH looked of at looking called like are it supplement, high is sense. is And XX%. DISH assume XX% is to your yet not

not necessarily. Yes,

is have is will just to We there of and that DISH a of a called view, we general – lot give called lot you aren’t customers chart customers that one aren’t specifically. out that out a but specifically, of

prepaid then in. about non-cash, about small drop put of could more rent And it attributable versus that small by how prepaid but to think XXXX confirm $XXX prepaid somewhat of from the amount amortization then of more drop is amortization is the of you Okay. no up. it amount there’s How’s going XXXX Can of that? question kind as down and attributable coming to towers rent to just probably the to where feels we amortization supplement wrap rent cells million, than cells? talking More towers if attributable Obviously, detailed of up. I’ll flat kind non-cash drops like XXXX, much in

Yes.

true. accelerate the characterize that us in down year rent this to because payments number $XX in rent we are million about way cancellation which on prepaid be amortization. cells, offset get by back is of will some rent you So prepaid of The to about it’ll flat prepaid small tower is come and primarily generally the where

that customers talked the to course more forward, They’re what you drop-off happen reimbursements the in as believe cells tables about as be XXXX, with projections. a we over and as towers. that But as And CapEx add we mentioned, generate will CapEx for statically for happen. not Going we’ve to amortization rent the small in in acceleration we get today in likely are like lot, our prepaid those continue sit of would an just to will drop-off additional offset towers year. as we

Okay. Very Stay good. Thanks, guys. well.

too. You

from your Please Our Nick question with from go next SVB ahead comes Del MoffettNathanson. question. Deo

guys. morning questions. my Thanks taking Hey, for good

wondering seeing fiber solutions. you talk I for be was the changes competitive if fiber on one you solutions. in about environment could any may First

that of aggressive the to push steps little in bit. some grow your as be think taking competitors guys cable try I are to are more large direction and internally reorganizing may a

observing and So you’re not be and degree which or seeing any even change responding helpful. observations change to there would the to

to question, A I largely changes. matters that of of Sure. but or environment as we a space, There the and subject solutions. macro set this we around and business customer been lot has number pursue unique obviously we’ve mentioned solution driven Good and focused you that changes by morning, driven businesses. more bespoke small have we medium in medical don’t seen the competition. in offer the earlier pursue. very broader that education Nick. mentioned our that And whether it’s economically It’s fiber government is a solutions that

the core big customers We that a haven’t seen really in we change pursue. environment the for

our a fiber And pace outside we that to at grow pretty in we brings have think a X% them. really kind our will seen comments, that by in of of to the we to of in one-time of end And mentioned underlying of ability of so terms provide steady data solution a solution business travels bespoke items compelling target think return the the growth kind business. identify and seen and where their year have this back the our to

Okay.

then more it sort a more chain. up on that can know update maybe Okay. as players have couple to fiber And bit. talked That’s I you share loosening Any of helpful. one about supply generally. a relates

has for think historically that of been more I you’ve chain generally supply you said specifically. a bit permitting a hurdle than

coming any the in periods? which may it there path growth and comments degree So, influence your

Sure.

you a some I been challenging as navigated the a real municipalities really from worked standpoint how mentioned, the well utility team to has chain navigating good permitting as our say customers. for the through a standpoint. well difficult has challenges our has over job it last with through both more a is navigating as impacted and they’ve that done really us credit would thing team as to our think not years. which I results, And several supply

and desired is of around team The of infrastructure but really business that how this key moat a of deployment aesthetic to long and a deployment this And point initial the technology. cycle I’ll learned very they’ve the do. the of proud and really significant. to technologies the that’s which And in these level terms very always makes at again, difficult of preserve the to work in is it mention the local the community, protection

work spot then customers. needed us with make sweet money. for think And I And our what’s the for and we that’s how

both be a the good that, on of do we’ve good network chain the on at an that able to to that be in any to us got a Our customers to deploy shared side, getting deploy asset as asset their deployment but the and supply on faster cost view to lower order and shared delivering And sites able power those for be order our also than deliver in both got the solution side opportunity ability to being to permitting we’ve customers. to timeline is solution us that provide. other and would by then

you, Okay. Got it. Thank Jay.

go Bank Please comes from Our Royal Canada. next of your question ahead with question. from Atkin Jonathan

discretionary. going the then implications talking see about, CapEx Thanks very are you trend year-on-year this potential for discretionary questions. ramp that much. that given review just up forward, forward? you’re and maybe opportunities cell the that a the for Couple Small you’re with what going on Because directionality basis, CapEx for us year

Yes. Hey, Jon.

we’re in only that though on on, a I net our on increasing business. increases, about though CapEx nodes is What co-location, can of was alluding Jay air, as XX% doubling the fiber year we’re nodes a putting even think basis of our number you’re what over the earlier well. we’re around CapEx little by on see as this number to following talking generally increases you

impact the co-location you of have see a the can So magnitude of year-over-year of on nodes. CapEx the a of that change pretty the compared can the the magnitude on of to basis impact change substantial

guidance So what more bit. the we a happen small don’t that’s we believe we’ll add be and cell, XXXX But in into on would going generally go CapEx, those trajectory because we more – up understand we beyond speaking, will don’t so nodes, to specific yet. can’t numbers everything we as give on add

changes to node on talked And in co-location to you’ve deployment note months. cycle XX timeframe time that or XX get shared of time a with that air, I the think any that. sort And you’ve about

falling of Jon, vast nodes are we the haven’t month that – – most seen cycle. XX into to the the majority XX movement that. any It’s following in still in

And then two quick ones. more

where band of to, that relatably on kind provide might do that we we’re various a milestones Just overlays. that can Any kind if hit deployments little you of growth, interesting? down commentary an tapering of of protection? period would your into term perhaps the what –would question comment environment to or reasons If and kind provide revenue spectrum downside have go bit you of MLA the for hit a alluded a entering MLA enter lot do operators their about of or be growth medium are for the mid

infrastructure talked network type you dark on kind And or provided? traditional wavelengths, – that What but driver, X% network of driving seeing assumption that connections for – more that then throw demand number as growth products dark the are bandwidth around about products maybe driving it more one, to in of are Is X% more fiber is a assumption? products it Or it or growth last I’ll is growth? you that growth the number. it underlie the

towers, first On future contracted. around as your Sure. MLA’s question portion longer-term growth the of us for growth give that obviously some

have we so end. visibility And that towards

we organically We can also of to grow that amount, our around which long-term the to to dividend growth to more contracted contracted X% X% of make is able have X% assumption our long opportunity beyond the the tower And the we carriers have network. being as return even beyond that deploy time, period view the drives over revenues growth.

the where as start a the industry and cycle think of X.XG now people XG about we’re then technology at carriers times past after first we over deployment of spending where people in the and spectrum XG couple to and of those some early is to deploy years during as years – XG whether the have we’re at XG and the has cycle has acquired of one XG wonder deployment probably that of it’s started and think sites. faced I our of

period I as indicator it as behavior. as it’ll have of the would full time. over is will take out that. a mentioned of at – The of future And a will that steepness an a use that more deploy And take indicate And we basically comments, curve decade of best I look cycles probably come terms not to minutes past in of is and indication my growth long think consumer in the of XG. teacher flattening the in investment

carrier need sites. two spectrum for curve either the deliver of in more. there’s the It’s are or increased the the only as fact, In capacity that additional used through in And is ways devices network. steepening hands to the wireless

are carriers some And deployed not – have us today. both have taught they will need has that our spectrum necessary. experience that will The

in will numbers. they get and then benefit As And deploy our will benefit revenue growth density be that. spectrum, that additional our the from we’ll required infrastructure

the look to resulted to we was era cycles it’s each As in comments, and the those of XG deployed. XG, XG or mentioned cycles, each XG more over at time network those XG of of CapEx from to my over in I XG, in the that as period

stacking what capital that we we up be to spend XG, ultimately So we think the saw XG likely at way it certainly is on of as look is part the in more than early XG.

think And able so, the our about got from one and our of it commitments cycles the think customers, and long-term. a deployment it long-term We we about over things about is are are to business long. great

going growth XG drives our we’re decade the our next over So business as appropriate from cost to for customers, as we’re for is to technology feel we’re can our then on the ultimately infrastructure demand we tailwind it at an and ensure where the infrastructure. them. is. as really as for quickly of deploying providing been about the is consumer about goal focused to cycles what the that excited mean and this the And today need And we’ve in comfortable past

your mix doing very have of the and for a what Not would dark change, second fiber we leveraging products in plant good And of ground new of around we been today. team yield. that much products out similar reaching On our the already job that that that are capturing to wavelengths same say the logos we’re on to that combination offering is to the and sales combination we’ve fiber, drive I fiber. in question the offering, sit that and have the fiber they products

that And driven is your some question. in of

it is in need. driven increased growth Some of the by

the the fundamental certainly driven the being two of the fiber those just and business by data is that to probably as movement of two of that created factors business. already are cloud of movement as to probably that well towards we’re Some growth driver logos in across of as the the And data it as that the of we’re overall own. we the then seeing expanding data new cloud drivers amount

Thank you very much.

Brandon from KeyBanc ahead comes question. question Markets. next your Nispel Capital Please with our go from And

Thank Great. big the year. had taking questions. this mentioned for if I Two, Jay, think growth a having impact you not bookings you on I really could.

I think that’s pretty understandable.

year-over-year if we’ve hear, in how that’s core terms higher or trending trending to characterize new are and in basis, I’d to the bookings compared on are change like what like I lower applications guys year-to-date you been of what could a they lease leasing seen? think looking that

of Thanks. would expect beginning at year to a the to the be to core question year Dan year. guidance. And of that was If it guide leasing it level and loaded given guide? just started this then the the where the for think year lower needed commented $XXX How the do was for towers, more leasing. hit what was million than for look end get And fiber be $XXX you the the rate at in it you you I given so of think we where by million guys on I was run much Jay

Yes, Brandon thanks for questions. the

tower to bookings. will and to with we’ve We’ve future the be we’ll able of conversations seen your long revenues to And – that On the term to able that be let X%. to seen view consistent to grow I X% on would be lead one. the tower grow ongoing the that. relevant activity consistent annum, expectation activities their so that from at our is will Those at the network the about revenue with second view bookings need and the expand be conversations, that are carriers question, bookings that even the would I’ll include our the over those take the side that per on first Dan

our half, loaded previous doesn’t mentioned business, have. much exactly mean this as on And the going level new taking will question be second half the years same. comment the second have That the tower difference to as the every before, is leasing, made that that not Jay is as that quarter in a first we year

Our true. business won’t does of full year bit And guidance it a first operate reason with I But come quarter. of little our that doesn’t give that saw believe variability. the any in us we think some to

we’ve a lot to ability business. that talked tower everything deliver in have So of our the we about, confidence on still

Jay XXXX, a quarter quarter On of that $XX there’s thing first the of the period as in XXXX out the XXXX, million comparison of that the mentioned, period first is of fiber just first side, it. one bookings of of had quarter

driving And a be activity, activity growth. the is the the in fiber growth, back we’ll bookings believe which through that XXXX. we we full longer year less guidance. had year, little back solutions we is the pick the we that, But said would flat that you half year the with year, with revenue we line exit which XXXX our the when lot if more growth So also our in that to knew through a X% normalize for up why look of

in we leasing do business to increase activity activity fiber new expect XXXX. reach to in million So of able some the forecast for $XXX be our

you. Thank Understood.

your America. from question. ahead comes Barden David Bank Our next go question of Please from with

to of a new so Thanks could the on up moving other year million, of rest million, guys. some guess just revenue us about point little jumped give came that? that’s a expenses, Dan, even revenue Hey questions a which you services organic I in much. first there for kind whether or XX the sense off down two kind jumping XX fiber the of as question, was parts as

biggest of applications minutes capacity a globally just question, demand. And cell the one that Jay, use a on that work I sorts consumption in the those and consume the course of at consumption capacity of to anticipate is data, they’re networks to expand. the bit addressable and their just correlated, have the function little want the capacity people of second that second because their don’t capacity one using sector push that it They the expands day the has. that And theory, is because which demand back the at the will is need are lowering to required maps, of of then video, And ones, kind kinds but of morning. really a U.S. things. phones driver And grows carriers that market in one in night

through applications, incremental capacity time. shrink So, absent requirements developments, actually

talk I So enterprise, of do no about and new that the with what – really application private And kind new bear that market there only concern maybe is how is you big that networks address people the lot for you the of like maybe are But on that applications. these having a you. was that conversation that if elaborate kind more companies. a days? for because opportunity could little wondering tower bit we’re Thank

Sure Dan, want the I’ll Dave. you then first to question, second? the do take

when seasonality the Sure. are specific some business, – There there we things. in quick. I’ll pay really is of do it some Dave

the We million So revenues. believe is can the similar to the be the year. and will growth something that you for the growth $XX not increase expenses annualize in

Thanks.

not growth and of XX% line of are you use. north of I the track rate do draw second Dave, comments year. of set expectation top use think at our important minutes question, my an Minutes an point would growth on that per intended revenue your growing certainly to are

over of done time. a that trying I’m figure of as that good use possible. have well point manufacturers And in through have really I that as good as that pointing on job think make developers trying done ultimately out way suggests [ph] a you’re carriers demand a a done And as our infrastructure. out the job wireless device to good use to spectrum application carriers network the think fault is have a to that is correct the job I directionally efficiently

Whether some been that the XG. if a efficiency the growth network. minutes look than that’s we for XG has many is have what spectral where in in mentioned, the was efficiency. as technology, network you efficient and density significant of of even And continued through But happened. were certainly applications the is back at today negated not that growth portion many, go solved more in or and the has and that And which use world, you in times in improvements need it XG the of infrastructure spectral

specific I driver minutes point of as would to think that tailwind a layer use. and than growth deeper the just So the two things go to of

view cell going are cells pretty in infrastructure where think The deployments of as our consumed? a those coverage minutes have, we from use look small are a I tower standpoint, first places – is small providing And where places at tower market. overall where and is unique where significant we in there’s the a infrastructure in network that’s already

to growth the that in for inside drives minutes growth range is of a additional by in need the a But minutes an use today of tower area the covered site, of coverage of infrastructure inside of for in the the And the those minutes carriers into small order the overall experience spectral maintain improves cells some tower. tower, efficiency of to and network particular have offload that the consumer.

wheel five get And not of the still in or challenge being have of connect. and the had to the that. of use are drives and our have solving ultimately cells where minutes us spinning we death small we that need down for of bars at experience all phone, we the four look growth able think I

that point to. So area that would I would be one

the ways give searching and that was access devices application, The were These ultimately found capabilities. second point used the in And ask this will the for same killer to XG, this to you talk We necessary I us we around be going we’ve technology I to XG, internet XG. question to the what where on And with to innovation X.XG would trend. to use need what there in is I the the to questions asked think thing seemingly incredibly that is no that creates. platform important ways. we go? is these is think greater devices just

I need additional growth that believe uses the killer platform even and application uses be what today. there one of will spur a drive will in that innovations the spur won’t devices the true and drives we’re need. and applications the will any and seeing creates same and thing will multitude be But future be that that XG the beyond XG innovation for it the additional

use the to their I want also good finding to to and growing will need ultimately combination our additional want healthy good good of customers of good a ways of grow. proposition and that degree them We us. the things and for is for from a and ways will limit And efficient for good sites combination the us lot spectrum those of think the consumers the for So is and minutes for us carriers what them two minutes that we see provide for some gives to utilize use benefit and spectrum. of to of confidence do continue to finding be

Jay. Thanks,

Maybe maybe more one we question. could if we’ll take operator, take –

ahead Walter LightShed. Piecyk Our your question. final question from comes today go Please from with

Two Thanks. questions.

one XX-year on is if or minimum lease there of underlying spectrum, payments? DISH contract, the or the you of a the First change sale control still get

get contracts a of we a level of so Well, wouldn’t that’s into. customer detail

the if you Okay. XX I guess, XX. million, you’re from going back XX still down solutions, And XX, out fiber the the million, to then XX on

thing, I from towers and like XX, a XXX. you execution just Like the really contracts, which the us that to execute drop meaning lot So number having and get on. and that XX the same hard are it’s I fiber a of XX on think you If solutions fibers, whatever plus know like in ramp and off this to the XX to just last year, the seeing the getting time backs XX quarters. the to out bookings,

helpful be that in it in you like is fiber give type the visibility So Thank of towers it same do you. might to have solutions? that qualitatively, you

was year, to means to $XX you to XX. you $XX XX or thing would was QX you million that have the not XXXX of well, which million actually the QX a be what just might different from I expressed happened by amend out what because pull the previous of than the Yes, XXXX growth little [ph] the to think XX is growth, one growth XX,

it back just quarter. can’t from the previous you So out leasing new of activity the

at out about gets got to that talking would’ve And You year. growth run the the much it been. for point that full we’re what show closer back that you growth to revenue of rate to the the

visibility increasing don’t understandable through an earlier. seen we okay, it And But XX the visibility for could demand Jay it as the grow have over extent to those we more speaking a talking I that that leap like sense as the as And believe about, of data been was we to large we that that. be to past. reasons have to we’ve earlier, external types level quarters get what be say, will grow the activity think not to to expressed something it’s the makes do in such year, would continues activity party to or time. we XX We’ve of course Jay

the Well, using the XX it’s – just the follow-up? do very number the as that, we I that using But XXX just – helpful. should doing we’re the as XXX, XX So adds or can be quick XXX? one should number simple to are we math should we if up on be

Yes.

in So the it’s XX a do get see is we of of that’s growing for through year growth us were activity quarter. in there plus time think over we in XX the that case talking there. certain and we to course to increase the to order should get about, in But like

Got it.

the and just are to part alluded towers businesses difference fiber in of and second Obviously, those you the maybe cells between small numbers zooming question, the your specific out from year, solutions. Well, the and of kind different.

Our fiber business is solutions more transactional.

multi-year do And small we same there so revenue when sign. But what don’t tower contracts to growth our we a and way visibility multi-year meaning commitments for to the is see cell, multi-year future don’t the as from commitments Obviously, be. customers typically from going have that are in we business. we

timeline we nature shorter a have and be. transactional going more it’s to in of what that So is of visibility growth

we would among difference where have expect kind good and are differences the that good of feel we you also lines, in of number for business. a year our our about guidance the visibility of questions, mentioned of looking then nature where a there solutions and fall. of certainly, transactional different is if more in of of and is But Dan I fiber answers couple terms we that business to months as We couple to the a have feel

you. Thank Understood.

You bet.

do you’re call this who’ve thanks for Keep up to Thanks, job soon. the for work. Well, customers. talk continued a executing. doing everyone. to the And team great We’ll good everybody our our morning. thanks joining really Appreciate all

end and call conference presentation. ladies joining. that, with We gentlemen, for And thank and you today’s we’ll

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