Crown Castle (CCI) 17 Jul 242024 Q2 Earnings call transcript

Good day, and welcome to the Crown Castle Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Kris Hinson, Vice President of Corporate Finance and Treasurer. Please go ahead.

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

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

discussion reconciling Steven. over measures. includes crowncastle.com. With website available non-GAAP In that, the package are measures company's me addition, these call financial the section turn of Tables to supplemental in information at let Investors in call financial certain the non-GAAP of today's the

with implemented be and everyone, results, Thanks, as quarter look for next can second customers with part estimate efficiencies. In and holistic revenue continue our long-term Kris, of our in wireless we and forecasts and good we still master financial organic operating customers, consistent see communications the from us performance the profitable based industry of lots as and that work to more growth we call. that in our and will agreements And to the few this infrastructure steps U.S. having of are growth you provide license second, us build the a our business our we need year demand delivered the you as best-in-class will in of solid our stable tower better this of growth generate us higher aware we'll we and also compete first, share joining business, data appreciate networks over are drive and tangible we do afternoon, carriers all and revenues our as our to positioned for XXXX We're X changes operating on on either low-cost have to as increase time; major XG their license we that our believe full revenues out have networks. of X.X% higher for finally, in and company years, businesses shared from largest invest anticipate be agreements regional outlook. revenue or their level based fiber believe master to our significant expand investments, major continue infrastructure X our a to future factors: over with wireless and segment, position having a holistic our this year local more rate outlook which expected of solutions, year by supplier contracted our confident taken be XX% to cycle; tower to of for customers reiterated that, growth will growth customers

announced We've that more through those and businesses. changes growth of cell completed plans our to greater profitable small to Moving many operating and our of changes in to and started operating we benefits the fiber efficiencies. the see have June

addressing improves allows teams our have fiber our outcomes, provide us mix or our operational on locations allocation. on are in of also cell collaboratively commercial to small evolving add many the a deployment capital that our invest cell priorities affirmed of part of as and implement much footprint, year, these opportunity which enterprise done and Fiber around customers while requirement the network without earlier greater As with in solutions we our connections existing we additional review this high-quality densification customers' small to capital customer to and revenue as past. To our segment, working which the to which of been fiber conducted near business, our project we've exists economics changes that

this build short run. in plan fewer our of we in operating the nodes to As plan, anchor change part

customers' by However, continue given our densification expect in in long-term the sufficient assets several really is over grow there we large small digits to have needs where place, pipeline cell and our robust we years. next geographies to demand revenues double

award anticipated commercial shorter incentive system efforts plan. near-net our our and on expenditures going We payback that We've returns believe changes, reduce project we changed required opportunities go-to-market returns, we've focusing our discretionary of invested And on to periods our fiber business. forward. to adjusted these or increased solutions sales improve rates already sales our Turning in by can resulting capital on- capital. support

long-term of So solutions assets our we in quantify efficiency our year. growth we like And small analyzed in the markets we our to around cell to fiber organic ample business, X% fiber. revenue achieving opportunities believe the existing fiber to capital opportunities improve while per utilize have

announced in focused believe target cost will June, both will and near-net generate $XXX run approximately also fiber cells more in of on-net and effort of we As savings. drive to annualized capital our million small solutions we a rate demand more and efficient use

generate of expenditures to quarter, reduce on cost expected implemented us the $XX we million most these track year. capital for of by Importantly, $XXX which of second about changes approximately million this and end by savings the keeps

consultants As how and and maximize fiber ongoing. we make deliver shareholder is strategic the continue operational to and of Fiber which remain and to Review active to continue strategic determine working team the focused evaluate value. to the management review, changes, with solid Committee, The I Directors alternatives on we external results Board

fortunate my our with more present show are XX% much actively expectations company's video weeks, have everybody businesses, everybody minds can like by to behind employees in segment the about than with through past goal the been we to saying the unfolds. I'd we in set engaged who Castle my process from the is in cell company questions answer on was provide about people's I've for conclude and -- changes, and multiple major recent forward. My share conversations discuss small updates exist The be fiber that in the continue timing. meetings minds of and can't share we'll What over these and that of our calls. takeaways conversations going Crown to remain parties as and of themes we X to with either start a our Fiber rationale the and process employees. discussions in-person comments also that interest engaged was operational these conference the the that, few of more Now third lot with solutions to

minds we operate. ways make sector. to leader how the to and energized to we proud in they the to Crown serve, being to care of want doing ability very help in They're they great their and about excellent excellent, they and part have pride. to continue as differentiate engaged company develop lead shareholders First, including of customers changes are we recognize be the in in communities. the our of And seen us constituents that And and and a most Castle, of be new things process second, need and to participate as

met to our time employees, come I at all with they I'd the meet me our So reassuring employees of And this employees and open over but I've stay deliver all business soon. to as those thank a during being a to past continuing know and for of were thanks it's been delivering change, to and big like to for been customers as results yet transparent to there's several period. team on this I for a focused drive has the lot months. and that able will

Now And understanding our that share management convert develop we of us returns of chances I increase keep would the appreciate your bolster taking shareholder it all I to capital as goals will revenue our for and to the new investors optionality sheet continue new value. EBITDA, having is opportunities, generate on future higher ask to time. ultimately, investment more all revenue employees deploy, process change in down that, increase of a and new that shares we takes greater said improve growth in balance and our to mind a

with results. the So let turn through me quarter walk over that, to to Dan it

second Thanks, implementing track operational in in We year after the June. for results full our Steven, outlook delivered remain and with announced expectations we and good on changes afternoon, quarter line everyone.

underlying Looking second quarter and the from at continued to highlighted solutions. excluding from of the X.X% the well cancellations. our of towers, consisted XX% business fiber results the perform X.X% by in cells, second quarter the quarter, presentation, impact Sprint earnings growth growth The on organic in Page X growth, small X.X% organic from of consolidated X.X%

operating resulting our with business the solutions our our are the despite X% expectation attractiveness in generating our at growth plan. This last are the encouraged this time, U.S. capitalize to we above for couple uptick in fiber with delivering small cell growth to on in years by activity in growth business well made changes of and the levels as to our underscores stability of demand our growth compared growing growth expectations, positioned of data the current line and the these higher tower we business We

than and service margin contribution due which proxy to activity to site noncash which revenues prepaid the half lower cancellations; solid and fees several and quarter reduction million of amortization, the we business, and combined in was onetime items, primarily the growth Sprint combination installation offset in a a tower reduction both As last second anticipated, related to year; construction in made the by noncash rental to $XXX $XX related of decrease the implemented organic items; a delivered exit and more to million in million including advisory our the of are decision $XXX the revenues contest. straight-line recent of million rent $XX we

to Turning Page X.

to and full items which revenues, year-over-year reiterating AFFO and reflects mentioned. just onetime are site a I we June, in We released primarily in the the decrease adjusted due rental year EBITDA outlook noncash

XX% The of consists and to in site remains full billable cells X% in unchanged expected fiber impact nodes organic XX,XXX as XXXX Sprint billings excluding of organic growth, rental X.X% organic growth to the growth consolidated solutions. new impact year of expect X% in X,XXX cancellations. we of from Our contribution cancellations, X% or to Sprint XXXX towers excluding from the X% with nodes XXXX, compared small compared XX,XXX to from X%

increase million nonrecurring includes $XX cell to we organic As early payments. related in small announced XX% primarily the termination revenues in of growth a June,

is Excluding this XX% impact, year. to be growth organic this cell expected small

Moving to Page X.

$XXX to impact AFFO is of of and the cost, cancellations the the at deliver growth $XX the midpoint includes in growth to to approximately amortization of which by in rent. of cost AFFO in $XX all in as as contest, a Sprint closures Included proxy June. $XX in expected million recent increase to related noncash decrease an levels expect normal operating reduction advisory which in this is increases million decrease excluding our announced offset million well we fees of We million staffing costs related office prepaid and be

the to the with We the excluding second at quarter leverage nonrecurring sheet. X.Xx balance of EBITDA advisory fees. impact ended or the Turning X.Xx

XXXX, of by fixed strengthened to we the in percentage as Looking secured XX% will sheet our extending quarter of increasing our decreasing the leverage third ahead point believe expect cost percentage and quarter, the debt Since balance the rate the improve from average and XX%. our to we XX% investment-grade metrics from from low operating for second X years, to to our year weighted to we to X%, we be from reductions. benefit transitioning maturity have EBITDA our debt X

ended availability We only taken to strategic $X we have revolving to with financial our fund our quarter providing billion through as and flexibility believe the liquidity with facility ample and us forward. strengthen credit business. us of paths addition, XXXX, debt $X.X we steps our we balance maturities evaluate In provide of the with stability sheet approximately under billion

track for growth after result to and operational As $X.X of billion summary, discretionary or of outlook business and $X million we decreased of the implementing parameters to investment $XXX a now announced performing expect in June, we us modified well, to on our delivering taking the $XXX we outlook gross expect billion million we $X.X billion full year our for keeping recently as announced implemented prepaid we account CapEx organic CapEx is receive. In after changes into in rent June. the discretionary

by fiber review the fiber financial progress across complete, results With to delivering review small assets. and value and on of focus tower, cell operating portfolio shareholder our maximizing the is strategic operational and solutions our continuing

that note to guidance of upcoming like I'd Q&A, timing we starting the Before are the year. provide changing for we when

should our call Going third guide of January. With we full expect with forward forward, I'd means to guidance in that, year to as provide our like earnings fourth for earnings quarter questions. Betsy, will opposed open This year receive the quarter you XXXX guidance release. past providing to with in practice our

first The from [Operator Flannery Simon Instructions] comes Stanley. question with Morgan today

all for What sort what some get of spending I on OpEx the rate this was there. done. color color on CapEx. the Presumably thanks and Steven, review was was the new already a to of CapEx of the since review, midyear is run wanted more

You of year. contracted the may the have spending second more half in

any the you usual going Dan, you. this at approach think sort So and what for of given will more color can you higher us one your rate rate sort provide maybe, be focused of hurdle forward? And then more

there M&A in may couple about about to X.Xx Verizon How the you of leverage the talked You over Bloomberg's of here? basis. a you there's are there. of on are down context adjusted in years And What portfolio targeting out be next coming the thinking that an terms reporting leverage that?

guidance I'm first that of of CapEx revenue the driven on-net, activity we we million, talking we think and time, understand mentioned expect we was the point give X over I looks capital intensity $XXX about been think to that have that full level to business, we CapEx, generate opportunity will that the to you we're really you're give things can't hit. M&A ultimately, projects which amount until run means the But as and believe we the are on much leave rate that, in be Dan. and overall going like the lower is and how move, by for able run we in for this of we of go so what what is it's near-net of come we were happen to take to XXXX. our rate the we so have Steven focusing midyear one going opportunities, the about, CapEx, down. But to Simon, CapEx right year. a is what save we able is a going But towards

or forward, really that would have on potentially neighborhood more that but anticipate we to So -- we before get XXXX that to can to give point. in somewhere we're specifics going going

to from at not grow Xx as of elevated goal And terms leverage, we be our now, In continue point we about, that we Xx just much able we that of is our to the as we believe, grow leverage. to because time be nearly capital capital that the obviously, savings goal. but over towards we're and EBITDA bring down think talked leverage will organically

Simon, it's Steven.

we market aware we're in definitely the being us, different for strategic either so confidence compelling truly consider if assets for proposition overall, M&A, and of not is terms But of we we cost market value, those characteristics, the In that are of in us. coming M&A then effective, future I types highly priority have right to shareholder interest. has have mean, now, it necessarily delivering And a which or U.S. compelling the it's in if

Citi. comes The next from question Michael Rollins with

about curious, tower some comments of on made business. I that the you the was Steven,

X visibility mentioned a results better curious within drive also higher of you what the growth give in and rate. translate that forward. you if best-in-class talked annual will more and how to think could then share a context XXXX? And you that look if steps could you that you at seeing in seeing of in those about have share business us going company can come you things this that what activity. is that and could taking be I'm into an steps tangible the some And as there you carrier terms thought curious of are you're organic signals early And any update you're You provider.

Yes.

to a our tough beyond. vantage It's It's revenue we're what year little correct. conversations directionally early that Michael. see about us that just point. But talk bit gives what next forecasted we with we our and is today and in from market Okay, customers optimism for growth having have the

and visibility benefit have obviously our our also from revenue stability We of in MLAs.

really work major carriers mid-band from as carriers. Right to in directions as look one don't shifting their things some state on way at demand we rollouts. or degree, So XG another our steady see we now,

So we'll for this that's growth, now we're end and And point. ideally, there's going about budgets again next into be between that but thinking how opportunity pretty vantage working this of through the year. year, year much our more from

areas to as things, with differently wisely As now already it that strategic we'd have what which the kind leadership to relates improving tangible we I say, priorities fiber then cost see evaluating changes consider outwardly mean, right were over is some business critical; review management fiber for of the of cash, of are: the everybody; our and can us EBITDA in our very transformation. our occurred key, operating or is other spending and with business, margins and business for us, business how team as discussed time;

of in starting our repeatable with which and inefficiencies that, identifying root really the when sure the have fix improving about are workflows on systems, business opportunity right can more be thing making to evaluating for people, a things transformation on. I and you're lease-up. steady do out state, now work biggest in I the plans mean think efficient, that reliable this revenue has are improved to grown more focused and some processes, more I the transformation. bit driving lot crazy, to for to that we tend company. causes is been business people when a it's think like I do figuring growing and little us you roles. us last in the this a and company to right is getting you decade, over them And probably so every the think It's and for people and And things significantly key have the so we need

CRM on enterprise new tools, and We asset management side. the have some

data that So improve up, maximize going able will to us lead types cycle that better are just data and keep kind to we're future. of to, better those to all around on-air time, really next over growth help whether the customer have of things the And it's X.X governance assets, the years, we organic processes wrapping in really focused. if to application the providing our all service have sure we that year, making

comes from The of America. Barden next with question Bank David

about I would you of the there. of us and the company always north and back thinking revenue that language straightforward guess quarter. we for X%, we thresholds, Could maybe now -- to nice the and undertaken times move right, be And tenant, if quarter. be, was kind backwards return just me return that first of threshold is digits. come it then A of the in a would is kind double tenant, second operational rate I start new the question then small whatever it service the CapEx a of question the second we've Dan, of third get around we give cell guess goes my if if run goes kind that get terms into review? And a kind what we expectations in the

foreseeable Steve, new run rate is start might to kind for think, level, from services I the future this this of guiding run the of a kind tower your rate point that to before 'XX? we for be activity

Dave. Thanks, Sure.

Let the small me as our is at business. first look thresholds one, answer what the return cell we which are

by exactly to to on X% lease-up X%, that build what anchor derisk of through that is had going allows Historically, I higher that on we the that so right. build business being than over market return of point. or we even like. position target targeted figure With in what allows they're to But make return our level upon is to capital build. X% making of higher going anchor the our going was number is what is can and at we quantifying going exactly that accommodates a we substantially. that's get higher now be capital assets. higher by the a we're anchor it up cost when time But not a on economics targeted out the this money than start of work and out is to that, leasing to to and lease-up can that say does it a think X% look higher them those us the us cost to pointed first You yet we All

the the when we'll 'XX put is run you course second rate question year. would generally rest guidance we the in out, as you in this update And then pointed we kind guidance for give additional the revenue On what yes, what will asked, think service that of over quarter our of for January. of I happen

James. The Raymond from comes with next question Rick Prentiss

XQ about change know us the NAREIT, kind in do XQ had it I to help kind want it to what call led in the know guidance, giving peers start I XQ understand to that slipping of the with from your of the change. Dan, chatted but call. I call. we from it

Sure. us part it. to led of That is what

a about had in could And what we well were I blazing we noticed talk peers. our anybody ahead trend X before October, started full to kind think were is them. when also we of was giving had noticed about, were a trail what our that we whatever talk we of else that we months guidance

amount had outsized we were that in settled amount subsequent didn't February, peers long the the of saying consternation so them our outsized of that it for a year get an as much. a pretty news time about the would And giving and by an bit, questions about And guidance and time. what impact the we ultimately were

early is it's business relatively -- And predictable. of been on be the of so one things is What the what that so to hard front. led giving is has that our path we've us guidance the that down trailblazer noticed

and giving like predictable. months it. guidance guidance predictability. October could we be our idea very us though investors to ourselves to it give think often closer in for good is the in more with in giving the we that October little miss giving still bit we were we even another can. good a X so peers October. We that help But guidance that we will expressed didn't in for business a going what's us last us the additional and our possibly on still And guidance give to We maintain market We believe believe to any information understand best quarter makes gives message that incorporate and easier to being and time

it's Rick, Steven. October, as been add the company September, process started to home in to we're I'd has finish this at of -- beginning Most I've that, driving try in to budget with, August. strongly companies August, as can. the year out the we

also out ask before if little to So our we move And understand guidance us to the later. formulize completely compelled opportunity we really a since to out, to a team little process move market it budget I outlook. more need the bit gives then reconsider, start for we felt the what bit have we guidance

That cycle carrier Halloween sense. tops-down seems the into come makes fourth budget And the to to head, bottoms-up, quarter. really a

your from customer too. it sense think makes standpoint, I So

exactly right. That's

based away takes it that Rick, one a it would other having, be -- the was thing, was just what which would we to issues Yes. It were we guidance takes jumping-off provide of would And and away fourth mention. then thought one going point. the be on I quarter we that

to so change have actually that we -- know is that to. we try to will that that back Now extra what other reconcile don't

buyer of sense we to or strategic from a if -- possible outcome a is about to small what are and standpoint there us apart? cells them something talked to it's delicately, is. Last it together? review think fiber, Kind Makes make update from about would the work. pros that question? what the seller sense what I standpoint and Is Or to as a the kind XX,XXX-foot cells. fair of think of but strategic review say cons from to this it both it small is including Is quarter, me. separate splits solutions fiber level a very talk that I will them

it's totally Yes, question. a fair

-- it's alternative business that for, that we we is to is we any separately. us apart do that fiber think are shareholder And small with value. said value in would think cells, worth maximizes we've open we sell with I believe what we're something than credit metric alternative goes what if from willing then makes the it then that a combination like to we what valuation only solutions combined to business. higher getting that internally, is would that somebody If

it. So for solutions. good we between together, look what to overlaps however towers, really That's try I look valuing That's tell to somebody and and coming shareholders. decision small comparing been cells want they that up and value each they our at why fiber you own or them we We have best but that there and have cons are think would how to together in open a they internal see how buyer thinking is making the out. pros them we're that's to can't separate. about the it whether figure potential to know and of

position, one think, unique for Steven, you're Last Okay. in. we me.

it? We continue public that? And multiples. you seeing opinion? it to persisted see you Why long private it multiples Are there? Can are is seeing above give us so well your has if why we

it's down mean, mean, very obviously, about and business recapitalize capital some whatever good you model out the a somehow -- and private very deals partner or -- mystery. road, that some from their excited We future the about who I company. with at Yes. or business lot multiples there are we're again, they the being see not invested of dislocation. just a growth return our high I get at, a able perspective, feel are on of business have the that opportunistic be they're looking we're to business, a And capital they'll question. investing they're this a is, to that good point a very great investing a That's bit nonaccretive about and they at this the somebody, investors but prospects. in sell that exit. And there think I capital, are

So it we the hoping, give are we'll Rick, us opportunity. time. does changes dislocation over that what an happens see and And

number may multiples it's to little will be next of flexibility that with years we that privates. that have juncture So opportunities. come inorganically, as over seeking and do our balance and sheet some bit, of there's that something optionality at would And the more these down a be strengthens conversations in grow engage and we to have

from The Schneider with next comes Goldman Sachs. question Jim

operational lower intention do to amount cell their expect the And change to whether in number in of small activity more XXXX, that overall to a carriers year? of small you self-perform in there's clarify update intend any small a work this to reduction can the cell reflects make and cells? you on believe that Relative do do deliveries you

at to their more it's changes have our Yes, made take types shift able as around hoped to expansion different to that capital since our again, long we maximize factors. on level and it's if to the network returns as continue we lot execute on be has of in Again, going business But the fiber of we the with future terms have based right, we're conviction had materialized, as well, solutions looking a we not this yet we invested about. talked many or backbone. and we're as And demands that. carriers the of in I'll on for their

from mid-band now, for spectrum. our deploying that's drive capital so to priority our on on better the mean focused deployed. of And And priority. kind their carriers top I returns perspective, remain is

into that generally and future the we things the data growth see is will able estimated, a relates But of demand these growth of terms going lead just remain in and going quarter-to-quarter. densification, speaking, in balance -- demand of revenue optimistic to into going we over of feel see type kind of growth more right, for in -- it to year. But we bit ever that solutions, business we're this kind future of next the run, demand, and align it their the on very future. as that's drive data drive changing, we be now it's time, customers how the double-digit we type is needs to this lumpy working of year that to more growth ours for process to the through and short forecast cells that with and So will which -- with we're the cells small we in

gains, few years? potential relative And business opportunity you in market next think your have helpful. the for then, greatest over Steven, you the comments a confidence where of to segment achieving particular the on that That's there is share your

customers We of agreements going major over to coming with up kind be our have have that's for negotiation where one holistic we new next year. these the a

us we're relationship a hopeful as relationship customer, our of to them level hopefully supplier. sanctifying of being even which up taking that next leads a that to and kind real or excellence to kind So of our partnership will preferred consider enable with further that,

sales greater So the greater of our for that's a a smaller whole effort of focused kind to rewards with business past. different element a in there kind and share I And we've on. out mid a of host higher effort, been it. There's be of be than should customers teams, think one we we convincingly and of regional that sales garnering have able

us give generate those more combination X our to of chance of than taking own be the now. of the able should share So to things we're business fair I think

Deo comes next with The MoffettNathanson. Del Nick question from

and philosophies understand what managing prior when broadly relates you you just in team about been this of more kind takes hurricane on the bit so to it contemplating the want those puts of and you can MLAs, of you a effects sorts you're I your arrangements. high-level see a to but or Steven, answer, guys expand have think bit little as your through okay. of hope was hoping I could your touched on the we

of of growth sites efficiently, lowers of certainty get really more to assets how growth Yes. really find we're where realize overall better a by maximizes types cost budget negotiating degree mean, relates -- it guaranteed also carriers of in way is a our me more giving on to kind ways time value multiyear to of Nick, we've and quickly, the of situation obviously to the to operations. significant getting be to And able able a them a for over a yes-yes shareholder comprehensive their MLAs. they good these parties, the or enables more to create we're kind that as of to key and achieve the where our both able I between much value which period been win-win while then situation

assets. here time in of providing that key terms assets elements and But able beneficial be of leverage they annual feel types goal is obviously, be escalations really these revenue. in that also to there's for So volume include needs to to carriers the our the on our that pricing packaging framework and us to and more of customers order have entitlements and them need in to in both addition that to over the drive

I that play, but number there's lot So you a know of I kind think a to which of about it those, come broadly. how that's of things know

other one a I guys doing you've solutions. sales to to going to historically? tactics near-net using or or down you bit more the you're on- the sales little your I drill Okay. guess enable tools incentives on That's or versus changes you fiber helpful. what been sell to on question be can guess sales

increase fiber kind and going is sales in project. clients trying a we're more larger customers are which are have away is GEM, retail Well, transactional, to contractual -- basically new time any to and marketing type again, from a education an aren't and medical. lens, there enterprise which financials, from the we're more been to to of also primarily, churn, sound. kind move help, that we've with clients, periods contribute I more zoom say. guess, that perspective call loyal lens we little of they shift solutions, financial And time, of I a spent wide-angle bit trying financially we're of create more tend remain as type the for dealing telecom, in would out move with retail And for wherewithal lot to customers more folks that of a And government, to that capital and what to longer of bit those a dealing from and

good able where shift also bit sales And a felt is area. call, sale that, we've months of from have complex from teams of steeped upside be in we over systems our to really in of what some kind into industry, of us more some selling. pretty kind this we both And headroom the a that collectively our shift number complex very last to to that goal adviser the lot of footprint. did input retail there's to So opportunity an that put kind they there's incentives help who's defining more And between and of place. automated in review or the some in terms

Choe The with next Richard from question JPMorgan. comes

business? maybe I that? be regarding review. an one I we about you're or earnings tower the next following the up higher a on And question, could have by X% the little question focusing bit still the strategic the call, outcome actually that is should year the mean, given longer business term, tower thinking then be on? than changes maybe Or longer of of a kind end that

Yes.

We're shareholders our good make on. we'll review, It'd we'd company. As the decision, for it would be good multiple frame We're like engaged it what right? the on it -- with we plays heavily see a We're counterparties. be It'd difficult outcome for people. time how It we to our decide our out. mix relates be be And for it's so to a counterparties, now. depending to it, put strategic on can in potential accelerated right? good

I be flows report as hopefully something year through. out to Stay on guess, just, us stay tuned. with So able we'll this, and the

business -- bit available. of a the of to kind the right talked carriers we're by Ideally in now, not the spend. Gs, their so of in something year, the readily it if trough. be. could of As with we outlook, that's in for next see X% of it cycles relates about how end us, a tick-up And to we're terms ideally mid-cycle over capital kind and the is a feel sure tower by mid We've maybe we

of they're to all $XX particularly our ratchet think billion they that, Not of or finishing and this maybe the between off as bit, little interest we a bit billion or, could a bit, bit rates demand I them, be helpful 'XX forward networks. But year, be settle by spending then back on if a a ratchet going say, overall. ideally, 'XX next greater of expansion. middle $XX year of of to kind which course, and XG see

plus So us, that then or believe, to of range. are that bit happens, kind higher those And we things incrementally. X% we growth puts that then of a if able growth, share increase of get a could if in X% collectively maybe

Klein comes Capital Aryeh with question BMO from next The Markets.

back going cells. just Maybe to small

you're strategy, impacted, talked think in previously the are implementing? that about the by of you've nodes I XX,XXX guess, How in many shift backlog. shifts those I Given

We're As nodes the has XX,XXX don't those of change a of right that change. customers. in have discussions now, backlog. all have this the working our would in that we point We changed And nothing through with XX,XXX. at still

obviously that figure what should of we sort happened with some hadn't we do, to there come but we be As number our will out customers decisions to yet. update changes, and want

lower. you maybe you includes about bringing maybe sheet Could strategy dividend and how and increased about balance think bit a then that? flexibility, shifting talked leverage And little which the point, that, the at include some

Yes.

review, policy, what's about in talk around else, include great have to conclusion to really future. would a fact the middle capital of we're a the the not that have be given everything more which thought the strategic we we're think on in dividend where ultimately, and we I until in we're forward place of what the going going allocation, businesses

question Bank. Matt from Deutsche next comes with The Niknam

well. the the Just X on obviously fiber sharpened there's One, as seems profitable theme near-net a call. to on be or on- It more of focus build.

This business I XX- back that decent visibility. before. million this I Dan, to $XXX the what point typically there's know pretty go has, a is discretionary remember, to we up year. reduced that to to XX-month So want business was so brought a fiber from CapEx an for bill, I book

XXXX informs what we believe core sort wondering, like window. And can longer number just I'm million, as how secondly leasing maybe on 'XX. today, $XX the then book-to-bill was this look since solutions, so I XQ And that fiber that quarter, the highest given sit that here of

out just So call strength. that notable for updates you can anything any there looking share and driving you'd

to sure. I just Yes. make want Matt,

at solutions? directed small -- on you was question asked was right, first not cells, based The fiber

just Yes, around discretionary for fiber in more spend so general.

book faster. to solutions cell small Fiber were is an XX- general. type a talking of cycle. Okay. Fiber bill, Because in when that's much we more book-to-bill about like XX-month to

we the CapEx. believe the We nodes reduced going that of that be we're going And amount end that, ultimately and January reduction guidance. can I that build said, it, discretionary we to able to to how will go we're part So and when we do customers will impact through we'll up will with generate. those our revenue the and the have talk give how about XXXX, in impact discussions of like

that we targeting is in the fiber On what that because that's we solutions are do about And locations not already fiber. out some reduction, reductions have we're do existing building CapEx to targeting We're of business. locations. with to has on talked the side fiber really our new

pointed the in are get to the opposed limited sales impact X% fiber as it happening look time, your So fiber which we with on And XXXX. quarter a at But the solutions existing as back that was activity a question to even going in growth that at types now, right pointed the are right is really of business some gone of our top best our those markets the around out generate side, encouragement very opportunities. And having assets time. opportunity team of the second made XX sell and opportunities changes growth is markets seeing most you all team And in the what I there's decisions market. out, leasing that And like forward of of was the in the the out, that out that's of your more us throughout still the us. are focus focus point making about said, fiber it in solutions the a may how I we think types say pointed to that great to on- it already that's would unearthing we plenty right we've solutions, the by and with place we is available seen there's Steven in attacking as sales and can and we're input and as assets. gives types both all near that as reside near-net we our same as put our out some you opportunity of make in customers we're that for fiber taking good where leasing growth we're plant of core of expansion leadership believe job U.S., of the some encouraged which in core fiber we X% over talking time. And that in activity of to business or to phenomenal quite existing still much happen. sales -- done right earlier, of products have incentives our a And

was of at, looking was that X XX be in wants of there's deal think And Yes. the to is like X to the and in can payback answer Yards we're it's a who to some like scenario. And yes. that to are that on. not New very realm greenfield answer can able York, something were that a example is I'm and the up fiber opportunity the the side I'd I'd the to hedge going brought floors colocation from asking day our teams compete guess sales built yes Yes say prove Hudson also a I enterprise done the or in going And fiber it's a of in also recent get like within no the with about I be the it's fund with binary, -- well-known on not builds. -- was just question to for if add, a teams I individual and meeting what that returns right? we

So not It's to greenfields doing out from it just counting has we're perspective, profitable. at just, all. our be not

year. think was there in it that the reaffirmed I question. months today's a about for discretionary million on in of follow and just X first was That's this release If could spend $XXX up for announced, I I was of fiber. totality know reduction

Or until additional generalization look January much it color? number? to $XXX we an a next sit is extrapolate like that say fair could of get year million So and tight more should and is too to just that

to our we go is, there's would tried not can from sit us. see is could tight say very a CapEx to of the amount would to be, based that spend to Steven's it be that be Whatever because, we amount It's like have to ultimately point, for on lots been Unfortunately, to answer. need lower still capital out January love profitable. the CapEx activity Yes. we that it until and of get. To is of customers. going historically be going that I intensity going than activity you're the going you're earlier, But

so give year. says don't have it's a of that we we to that a guidance hard Plus, going forecast XXXX, forecast exist. to for given so reduction to amount give any into doesn't And reduction capital next we a definitely this want will haven't

to So January. you're to I'm sit going until sorry, have unfortunately, Matt, tight just and wait

it. Appreciate ask. to had I

Levi The comes next question Batya with from UBS.

A couple of follow-ups.

follow-up on split fiber deployments were on the First X,XXX what us mix how X,XXX on delayed that can a The build year? don't the targeting from give more more to then we if CapEx to $XXX small you the mind. about can small provide next fiber cell one here? cell you reduction the is? side, the will on million, XX,XXX should versus And of you be you the annual down we pacing maybe Should color just think assume tackled

Sure, Batya.

talked But have of really plan don't publicly we've the the we that of again, nodes the of happen some to cell period, in that deferral point, we do a into in because a a hit from X,XXX going would is around XXXX. a future first XXXX the deploy. it push-out nodes X,XXX will we those small lot On about XXXX, those XXXX will believe nodes which of for

feel digits. years. And to the our our that business with for So comfortable double pretty being small build a we next as backlog can business able sense starting XXXX in a the it continue grow -- continue double we for we've grow like digits will the to is, is because good that because several good we to talked able we do or over think and we to that think cell what think about, have customers, we are point grow

the CapEx, million reduction $XXX of in cells to reduction the as in On majority is that small opposed solutions. fiber

with next comes Wells Fargo. from Eric The question Luebchow

the and that think backlog the as a of nodes? expect strategic colocations to announced or mix you How cell about you to small review versus the the On of years, anchor deliver last the of tenant change couple that operational month? should we next shifting any what review result

already Eric, Yes, anchor it's communicated a down a XX,XXX And the shifting chunk The the colocations. on that higher Steven. nodes I big will we've are to of those, going think of backlog, that be of going those be we're the nodes majority fact means our that colocations. percentage of forward

mix, you higher anchors. versus overall see going when of look at So our percentage to you're a colos

question then Great. Okay. on just activity. And higher-level tower a

particularly grids tower that the seen of have when ones? haven't of there densify majority from And is So perhaps with related activity years? markets, urban out your upgrading of if the exception couple visibility related the of DISH, activity in carriers your that any in up spectrum? a phase densification new pick amendment any of the still to today mid-band Or on kind to colocations more you you tower any next big seen may way, in

getting amendments. are of I said not we Yes. necessarily cadence some our colocations the but I from, a mean, is as of large to expect type percentage. regional most the or the big next before, colocations of activity same not that out it's smaller coming happen the kind Obviously, DISH. quarters. mix, a we're There's few the there, players of And over of number X in

Walter question LightShed. Piecyk The comes next from with

components you and can we Maybe the saw forward? back there's reductions what not, in reduction a about hoping just of or that last was I especially could million, of of $XXX the given asking and targeted believe not much things about noncash quarter. SG&A. are talk for At million, But in the Just areas components $XXX just year, remind some going -- first me moved you of from I'm kind it there reduction forth.

XXXX. in to that to our seen whether are of that accounting G&A, reductions we've of imagine, the are inflation and and have what $XX The by to about components of the we over happy that we that nature, able the working people have is the time, or there. are the been finance, And to business, will the me plan course And Well, have. And back-office quarter-over-quarter... that those Yes. million the all you are on as you'll we talked reduction we've operating targeted don't that my of the over do IT. we'll in able last I'm been several we the what part head of the we've about majority functions that years in are G&A of just that I offset the talk legal believe things allow have off -- -- that which would and top we number realize and have have of labor

quarter. -- and had mean, looked That's year, you prior kind be second fine. years, I last just to there. seasonality seem looking But I'm doesn't it there the in -- at came I a up of then

just I So going level it in maybe there was proxy Or when for the fourth the I mean, in you but last talk guess $XX all was a number keep big to is down? then there -- quarter quarter wasn't there and some that's about year. million, going there that's -- fees

$XX there million were fees. of Yes, proxy

an number the drop, organic reductions an which additional just in third we'll see proxy year some whatever. going back-end you second are drop QX. to anything in don't quarter, that improvements in whatever but fees there abnormal wasn't Obviously, was is, obviously kick these the the you'll quarter, then up, it but all I there? and -- when so But that component, there's like see important immediate these out last are think so Or we loaded? in? also And seems get

was we think pretty reduced Yes. well. pointed than we end as at because substantially lower our restructuring at be a we we XXXX And fees where, we the in rate as QX. We proxy saved the in in see did recently also will money XXXX, a come believe the of out, you so we see saw largely done -- out, G&A I as of the very QX, impact we we run

see impact beyond. you the So will QX and in

of things both those on. see So you'll go

question look looking it a at loaded And had see -- timing in was think we reduction, the substantial to but in I answer going to it reductions. on for you similar there if to year from a outcome, did QX, QX is focusing the started the yes, numbers XXXX, even not not So QX to the year. is your we you but basically, see which back-end similar very last because QX restructuring a this

in you'll And much a of because quarter second was I the very do So think G&A. the fees. spike reduction proxy-related see in the

Okay.

hopefully, reduction end in next much look, no year, proxy assuming more there's day, the I you right? fights should whatever and guidance, So of announced get you got 'XX, mean, then at the in you've terms the some of efficiencies better in

were in we Yes, we times restructuring, the we've a talked the And about make announced going few is to that June. plan. today, changes the as

the last talking our will the we see income through changes those and year. roll for that We savings of half have completed that of statement this we're course believe most about the the over part

with The Markets. comes Capital from next KeyBanc question Brandon Nispel

have A growth you But that is answered that been guys lot about, through the XX% already. X% guidance talked of have in tower 'XX the past, contracted. and

the is today terms guess I that remaining XX% growth hit confidence are trending achieving in So a of your how rate. in lease X% simple to of applications question sort

more rate to of, have about the we about say in talked what based see talked the business. that additional in for line going we've I much growth our growth The with XXXX are much are we or we've gave as guidance we tower very levels earlier, as see X% maintained akin we MLAs when volumes the what And near-term we is see is X.X% application I linked in we that guidance would -- Yes. our that what what because and year. last Steven activity place forward. would more is expected growth much there off

that is all expected. knowing what have longer-term And have so on what guide would was XXXX, growth. we much get with what gave that longer-term in to So expected to X% with line we it's in would line it very going in we all

today question comes from Our Brendan last Lynch with Barclays.

operations somebody while is And currently. process like fiber It businesses sales maybe and little How to in to should changes like the imminently. we still the a was with interpret these in you're else it ongoing? make premature would that engaged bit somewhat cell sounds such changes counterparties the managing assets small multiple it be seems be going

to our to an that future. value do have all then from it, figure with the out company really improve this what Yes. to what sense it improvement obviously continuous processes continually forward different is we relates as operations in X, guess, trying I to makes elements the mean, And I where strategic division look for in trying perspective fiber we And at was we're businesses. mindset most can process shareholder is X business. going the under the our of

in we felt creates was move to business, was We the take good the value. felt going profitability it wanted to more for as our So just for that was our good division shareholder business opportunity. which, there it. We and forward, be essence, of for good something we

to a changes of implement separate, the sale. think about how strategic kind of these So it's potential and opportunity because want part we apart we the now take from

call. presentation. question-and-answer attending conference today's concludes session This concludes you for our Thank and the

may You now disconnect.