x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 76-0470458 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1220 Augusta Drive, Suite 500, Houston, Texas 77057-2261 (Address of principal executives office) (Zip Code) | |
(713) 570-3000 (Registrant's telephone number, including area code) |
Large accelerated filer | x | Accelerated filer | o | |||
Non-accelerated filer | o | Smaller reporting company | o |
Page | |||
ITEM 1. | |||
ITEM 2. | |||
ITEM 3. | |||
ITEM 4. | |||
ITEM 1. | LEGAL PROCEEDINGS | ||
ITEM 1A. | |||
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES | ||
ITEM 6. | |||
EXHIBIT INDEX |
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 126,886 | $ | 441,364 | |||
Restricted cash | 161,541 | 575,938 | |||||
Receivables, net | 201,028 | 192,833 | |||||
Prepaid expenses | 124,395 | 103,808 | |||||
Deferred income tax assets | 182,053 | 193,420 | |||||
Other current assets | 84,163 | 73,961 | |||||
Total current assets | 880,066 | 1,581,324 | |||||
Deferred site rental receivables, net | 977,498 | 864,819 | |||||
Property and equipment, net of accumulated depreciation of $4,464,861 and $4,249,183, respectively | 6,892,277 | 6,917,531 | |||||
Goodwill | 3,138,018 | 3,119,957 | |||||
Other intangible assets, net | 2,852,434 | 2,941,696 | |||||
Deferred income tax assets | 26,059 | 33,914 | |||||
Long-term prepaid rent, deferred financing costs and other assets, net | 626,233 | 629,468 | |||||
Total assets | $ | 15,392,585 | $ | 16,088,709 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 112,160 | $ | 115,999 | |||
Accrued interest | 87,154 | 52,592 | |||||
Deferred revenues | 242,420 | 241,127 | |||||
Other accrued liabilities | 105,451 | 140,084 | |||||
Current maturities of debt and other obligations | 97,013 | 688,056 | |||||
Total current liabilities | 644,198 | 1,237,858 | |||||
Debt and other long-term obligations | 10,691,509 | 10,923,186 | |||||
Deferred income tax liabilities | 110,756 | 65,830 | |||||
Below-market tenant leases, deferred ground lease payable and other liabilities | 1,021,230 | 910,571 | |||||
Total liabilities | 12,467,693 | 13,137,445 | |||||
Commitments and contingencies (note 8) | |||||||
CCIC stockholders' equity: | |||||||
Common stock, $.01 par value; 600,000,000 shares authorized; shares issued and outstanding: June 30, 2013—292,685,462 and December 31, 2012—293,164,786 | 2,927 | 2,932 | |||||
Additional paid-in capital | 5,544,205 | 5,623,595 | |||||
Accumulated other comprehensive income (loss) | (77,491 | ) | (61,791 | ) | |||
Accumulated deficit | (2,558,169 | ) | (2,625,990 | ) | |||
Total CCIC stockholders' equity | 2,911,472 | 2,938,746 | |||||
Noncontrolling interest | 13,420 | 12,518 | |||||
Total equity | 2,924,892 | 2,951,264 | |||||
Total liabilities and equity | $ | 15,392,585 | $ | 16,088,709 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net revenues: | |||||||||||||||
Site rental | $ | 616,849 | $ | 517,588 | $ | 1,232,264 | $ | 1,015,117 | |||||||
Network services and other | 118,079 | 67,923 | 242,724 | 122,139 | |||||||||||
Net revenues | 734,928 | 585,511 | 1,474,988 | 1,137,256 | |||||||||||
Operating expenses: | |||||||||||||||
Costs of operations(a): | |||||||||||||||
Site rental | 179,015 | 131,571 | 356,621 | 254,442 | |||||||||||
Network services and other | 70,199 | 40,262 | 147,576 | 71,783 | |||||||||||
General and administrative | 54,790 | 47,078 | 113,035 | 98,079 | |||||||||||
Asset write-down charges | 3,097 | 3,646 | 6,812 | 6,690 | |||||||||||
Acquisition and integration costs | 7,215 | 7,495 | 8,817 | 9,175 | |||||||||||
Depreciation, amortization and accretion | 190,651 | 152,482 | 377,110 | 291,882 | |||||||||||
Total operating expenses | 504,967 | 382,534 | 1,009,971 | 732,051 | |||||||||||
Operating income (loss) | 229,961 | 202,977 | 465,017 | 405,205 | |||||||||||
Interest expense and amortization of deferred financing costs | (140,256 | ) | (144,940 | ) | (304,625 | ) | (282,412 | ) | |||||||
Gains (losses) on retirement of long-term obligations | (577 | ) | (7,518 | ) | (36,486 | ) | (14,586 | ) | |||||||
Interest income | 328 | 382 | 625 | 736 | |||||||||||
Other income (expense) | 507 | (2,249 | ) | (122 | ) | (3,326 | ) | ||||||||
Income (loss) before income taxes | 89,963 | 48,652 | 124,409 | 105,617 | |||||||||||
Benefit (provision) for income taxes | (36,587 | ) | 68,432 | (54,295 | ) | 61,737 | |||||||||
Net income (loss) | 53,376 | 117,084 | 70,114 | 167,354 | |||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 1,017 | 1,071 | 2,293 | 1,310 | |||||||||||
Net income (loss) attributable to CCIC stockholders | 52,359 | 116,013 | 67,821 | 166,044 | |||||||||||
Dividends on preferred stock | — | — | — | (2,629 | ) | ||||||||||
Net income (loss) attributable to CCIC stockholders after deduction of dividends on preferred stock | $ | 52,359 | $ | 116,013 | $ | 67,821 | $ | 163,415 | |||||||
Net income (loss) | $ | 53,376 | $ | 117,084 | $ | 70,114 | $ | 167,354 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Interest rate swaps, net of taxes of $5,685, $5,712, $11,376, and $5,712, respectively: | |||||||||||||||
Amounts reclassified into "interest expense and amortization deferred financing costs", net of taxes (see note 4) | 10,557 | 10,609 | 21,127 | 26,947 | |||||||||||
Foreign currency translation adjustments | (37,827 | ) | (6,645 | ) | (38,218 | ) | 244 | ||||||||
Total other comprehensive income (loss) | (27,270 | ) | 3,964 | (17,091 | ) | 27,191 | |||||||||
Comprehensive income (loss) | 26,106 | 121,048 | 53,023 | 194,545 | |||||||||||
Less: Comprehensive income (loss) attributable to the noncontrolling interest | (798 | ) | 1,057 | 902 | 570 | ||||||||||
Comprehensive income (loss) attributable to CCIC stockholders | $ | 26,904 | $ | 119,991 | $ | 52,121 | $ | 193,975 | |||||||
Net income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share: | |||||||||||||||
Basic | $ | 0.18 | $ | 0.40 | $ | 0.23 | $ | 0.57 | |||||||
Diluted | $ | 0.18 | $ | 0.40 | $ | 0.23 | $ | 0.57 | |||||||
Weighted-average common shares outstanding (in thousands): | |||||||||||||||
Basic | 291,225 | 290,649 | 291,164 | 287,781 | |||||||||||
Diluted | 292,706 | 291,203 | 292,570 | 289,029 |
(a) | Exclusive of depreciation, amortization and accretion shown separately. |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 70,114 | $ | 167,354 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||
Depreciation, amortization and accretion | 377,110 | 291,882 | |||||
Gains (losses) on retirement of long-term obligations | 36,486 | 14,586 | |||||
Amortization of deferred financing costs and other non-cash interest | 57,471 | 48,780 | |||||
Stock-based compensation expense | 19,472 | 17,105 | |||||
Asset write-down charges | 6,812 | 6,690 | |||||
Deferred income tax benefit (provision) | 50,143 | (65,544 | ) | ||||
Other adjustments | 1,291 | (41 | ) | ||||
Changes in assets and liabilities, excluding the effects of acquisitions: | |||||||
Increase (decrease) in accrued interest | 34,563 | (1,950 | ) | ||||
Increase (decrease) in accounts payable | 2,727 | (2,488 | ) | ||||
Increase (decrease) in deferred revenues, deferred ground lease payables, other accrued liabilities and other liabilities | 45,362 | (3,145 | ) | ||||
Decrease (increase) in receivables | (11,647 | ) | (26,225 | ) | |||
Decrease (increase) in prepaid expenses, deferred site rental receivables, long-term prepaid rent, restricted cash and other assets | (129,877 | ) | (122,662 | ) | |||
Net cash provided by (used for) operating activities | 560,027 | 324,342 | |||||
Cash flows from investing activities: | |||||||
Payments for acquisitions of businesses, net of cash acquired | (27,280 | ) | (1,199,316 | ) | |||
Capital expenditures | (254,820 | ) | (159,697 | ) | |||
Other investing activities, net | 6,644 | 1,188 | |||||
Net cash provided by (used for) investing activities | (275,456 | ) | (1,357,825 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of long-term debt | 30,941 | 2,100,000 | |||||
Proceeds from issuance of capital stock | — | 238 | |||||
Principal payments on debt and other long-term obligations | (51,085 | ) | (34,744 | ) | |||
Purchases and redemptions of long-term debt | (675,480 | ) | (699,486 | ) | |||
Purchases of capital stock | (98,867 | ) | (35,673 | ) | |||
Borrowings under revolving credit facility | 48,000 | — | |||||
Payments under revolving credit facility | (255,000 | ) | (251,000 | ) | |||
Payments for financing costs | (5,654 | ) | (40,237 | ) | |||
Net (increase) decrease in restricted cash | 411,048 | 12,620 | |||||
Dividends on preferred stock | — | (2,481 | ) | ||||
Net cash provided by (used for) financing activities | (596,097 | ) | 1,049,237 | ||||
Effect of exchange rate changes on cash | (2,952 | ) | 301 | ||||
Net increase (decrease) in cash and cash equivalents | (314,478 | ) | 16,055 | ||||
Cash and cash equivalents at beginning of period | 441,364 | 80,120 | |||||
Cash and cash equivalents at end of period | $ | 126,886 | $ | 96,175 |
CCIC Stockholders | |||||||||||||||||||||||||||||||||||||
Redeemable Convertible Preferred Stock | Common Stock | AOCI | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | ($.01 Par) | Additional Paid-In Capital | Foreign Currency Translation Adjustments | Derivative Instruments, net of tax | Accumulated Deficit | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||
Balance, April 1, 2013 | — | $ | — | 293,771,206 | $ | 2,938 | $ | 5,610,039 | $ | 101,310 | $ | (153,346 | ) | $ | (2,610,528 | ) | $ | 14,218 | $ | 2,964,631 | |||||||||||||||||
Stock-based compensation related activity, net of forfeitures | — | — | (6,032 | ) | — | 9,443 | — | — | — | — | 9,443 | ||||||||||||||||||||||||||
Purchases and retirement of capital stock | — | — | (1,079,712 | ) | (11 | ) | (75,277 | ) | — | — | — | — | (75,288 | ) | |||||||||||||||||||||||
Other comprehensive income (loss)(a) | — | — | — | — | — | (36,012 | ) | 10,557 | — | (1,815 | ) | (27,270 | ) | ||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 52,359 | 1,017 | 53,376 | |||||||||||||||||||||||||||
Balance, June 30, 2013 | — | $ | — | 292,685,462 | $ | 2,927 | $ | 5,544,205 | $ | 65,298 | $ | (142,789 | ) | $ | (2,558,169 | ) | $ | 13,420 | $ | 2,924,892 |
CCIC Stockholders | |||||||||||||||||||||||||||||||||||||
Redeemable Convertible Preferred Stock | Common Stock | AOCI | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | ($.01 Par) | Additional Paid-In Capital | Foreign Currency Translation Adjustments | Derivative Instruments, net of tax | Accumulated Deficit | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||
Balance, April 1, 2012 | — | $ | — | 292,928,485 | $ | 2,929 | $ | 5,591,191 | $ | 102,659 | $ | (195,702 | ) | $ | (2,764,543 | ) | $ | 132 | $ | 2,736,666 | |||||||||||||||||
Stock-based compensation related activity, net of forfeitures | — | — | 113,168 | 1 | 7,915 | — | — | — | — | 7,916 | |||||||||||||||||||||||||||
Purchases and retirement of capital stock | — | — | (3,640 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income (loss)(a) | — | — | — | — | — | (6,631 | ) | 10,609 | — | (14 | ) | 3,964 | |||||||||||||||||||||||||
Disposition of noncontrolling interest | — | — | — | — | — | — | — | 368 | 368 | ||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 116,013 | 1,071 | 117,084 | |||||||||||||||||||||||||||
Balance, June 30, 2012 | — | $ | — | 293,038,013 | $ | 2,930 | $ | 5,599,106 | $ | 96,028 | $ | (185,093 | ) | $ | (2,648,530 | ) | $ | 1,557 | $ | 2,865,998 |
(a) | See the statement of operations and other comprehensive income (loss) for the components of "other comprehensive income (loss)" and note 4 with respect to the reclassification adjustment. |
CCIC Stockholders | |||||||||||||||||||||||||||||||||||||
Redeemable Convertible Preferred Stock | Common Stock | AOCI | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | ($.01 Par) | Additional Paid-In Capital | Foreign Currency Translation Adjustments | Derivative Instruments, net of tax | Accumulated Deficit | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||
Balance, January 1, 2013 | — | $ | — | 293,164,786 | $ | 2,932 | $ | 5,623,595 | $ | 102,125 | $ | (163,916 | ) | $ | (2,625,990 | ) | $ | 12,518 | $ | 2,951,264 | |||||||||||||||||
Stock-based compensation related activity, net of forfeitures | — | — | 941,947 | 9 | 19,463 | — | — | — | — | 19,472 | |||||||||||||||||||||||||||
Purchases and retirement of capital stock | — | — | (1,421,271 | ) | (14 | ) | (98,853 | ) | — | — | — | — | (98,867 | ) | |||||||||||||||||||||||
Other comprehensive income (loss)(a) | — | — | — | — | — | (36,827 | ) | 21,127 | — | (1,391 | ) | (17,091 | ) | ||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 67,821 | 2,293 | 70,114 | |||||||||||||||||||||||||||
Balance, June 30, 2013 | — | $ | — | 292,685,462 | 2,927 | 5,544,205 | 65,298 | (142,789 | ) | (2,558,169 | ) | 13,420 | 2,924,892 |
CCIC Stockholders | |||||||||||||||||||||||||||||||||||||
Redeemable Convertible Preferred Stock | Common Stock | AOCI | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | ($.01 Par) | Additional Paid-In Capital | Foreign Currency Translation Adjustments | Derivative Instruments, net of tax | Accumulated Deficit | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||
Balance, January 1, 2012 | 6,111,000 | $ | 305,032 | $ | 284,449,372 | $ | 2,844 | $ | 5,312,342 | $ | 95,044 | (212,040 | ) | $ | (2,811,945 | ) | $ | 619 | $ | 2,386,864 | |||||||||||||||||
Stock-based compensation related activity, net of forfeitures | — | — | 997,109 | 10 | 17,333 | — | — | — | — | 17,343 | |||||||||||||||||||||||||||
Purchases and retirement of capital stock | — | — | (694,373 | ) | (7 | ) | (35,666 | ) | — | — | — | — | (35,673 | ) | |||||||||||||||||||||||
Conversion of redeemable preferred stock into common stock | (6,111,000 | ) | (305,180 | ) | 8,285,905 | 83 | 305,097 | — | — | — | — | 305,180 | |||||||||||||||||||||||||
Other comprehensive income (loss)(a) | — | — | — | — | — | 984 | 26,947 | — | (740 | ) | 27,191 | ||||||||||||||||||||||||||
Dividends on preferred stock and amortization of issue costs | — | 148 | — | — | — | — | — | (2,629 | ) | — | (2,629 | ) | |||||||||||||||||||||||||
Disposition of noncontrolling interest | — | — | — | — | — | — | — | — | 368 | 368 | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 166,044 | 1,310 | 167,354 | |||||||||||||||||||||||||||
Balance, June 30, 2012 | — | $ | — | 293,038,013 | $ | 2,930 | $ | 5,599,106 | $ | 96,028 | (185,093 | ) | $ | (2,648,530 | ) | $ | 1,557 | $ | 2,865,998 |
(a) | See the statement of operations and other comprehensive income (loss) for the components of "other comprehensive income (loss)" and note 4 with respect to the reclassification adjustment. |
1. | General |
2. | Summary of Significant Accounting Policies |
3. | Acquisitions |
Preliminary Purchase Price Allocation | |||
Presented June 30, 2013 | |||
Current assets | $ | 17,854 | |
Property and equipment | 1,490,594 | ||
Goodwill(a) | 438,758 | ||
Other intangible assets, net | 407,000 | ||
Deferred income tax assets | 207,929 | ||
Below-market tenant leases and other non-current liabilities(b) | (76,349 | ) | |
Net assets acquired | $ | 2,485,786 |
(a) | The preliminary purchase price allocation for the T-Mobile Acquisition resulted in the recognition of goodwill at CCUSA primarily because of the anticipated growth opportunities in the tower portfolio. In addition, $371.3 million is not expected to be deductible for tax purposes. |
(b) | Inclusive of above-market leases for land interests under the Company's towers. |
Six Months Ended June 30, 2012 | ||||
Net revenues | $ | 1,309,132 | (a) | |
Net income (loss) | $ | 155,872 | (b)(c) | |
Basic net income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share | $ | 0.53 | ||
Diluted net income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share | $ | 0.53 |
(a) | For the six months ended June 30, 2012, amounts are inclusive of pro forma adjustments to increase net revenues of $129.9 million that we expect to recognize from the T-Mobile towers, including T-Mobile's contracted lease of space on the towers acquired in the T-Mobile Acquisition. |
(b) | For the six months ended June 30, 2012, amounts are inclusive of pro forma adjustments to increase depreciation and amortization of $77.8 million related to property and equipment and intangibles recorded as a result of the combined effect of the WCP Acquisition, NextG Acquisition, and T-Mobile Acquisition. |
(c) | For the six months ended June 30, 2012, the pro forma adjustments are tax effected using the federal statutory rate and no adjustment was made with respect to the Company's reversal of valuation allowance. |
4. | Debt and Other Obligations |
Original Issue Date | Contractual Maturity Date | Outstanding Balance as of June 30, 2013 | Outstanding Balance as of December 31, 2012 | Stated Interest Rate as of June 30, 2013(a) | |||||||||||
Bank debt - variable rate: | |||||||||||||||
2012 Revolver | Jan. 2012 | Jan. 2017 | (b) | 1,046,000 | (b) | 1,253,000 | 2.7 | % | (c) | ||||||
2012 Term Loans | Jan. 2012 | 2017/2019 | 2,044,800 | 2,065,250 | 3.1 | % | (c) | ||||||||
Total bank debt | 3,090,800 | 3,318,250 | |||||||||||||
Securitized debt - fixed rate: | |||||||||||||||
January 2010 Tower Revenue Notes | Jan. 2010 | 2035 - 2040 | (d) | 1,900,000 | 1,900,000 | 5.7 | % | (d) | |||||||
August 2010 Tower Revenue Notes | Aug. 2010 | 2035 - 2040 | (d) | 1,550,000 | 1,550,000 | 4.5 | % | (d) | |||||||
2009 Securitized Notes | July 2009 | 2019/2029 | (e) | 189,137 | 198,463 | 7.2 | % | ||||||||
WCP Securitized Notes | Jan. 2010 | Nov. 2040 | (f) | 297,139 | (f) | 307,739 | 5.5 | % | |||||||
Total securitized debt | 3,936,276 | 3,956,202 | |||||||||||||
Bonds - fixed rate: | |||||||||||||||
9% Senior Notes | Jan. 2009 | Jan. 2015 | — | 304,718 | N/A | ||||||||||
7.75% Secured Notes | Apr. 2009 | May 2017 | — | 291,394 | N/A | ||||||||||
7.125% Senior Notes | Oct. 2009 | Nov. 2019 | 498,219 | 498,110 | 7.1 | % | |||||||||
5.25% Senior Notes | Oct. 2012 | Jan. 2023 | 1,649,970 | 1,650,000 | 5.3 | % | |||||||||
2012 Senior Notes | Dec. 2012 | 2017/2023 | (g) | 1,500,000 | 1,500,000 | 3.4 | % | ||||||||
Total bonds | 3,648,189 | 4,244,222 | |||||||||||||
Other: | |||||||||||||||
Capital leases and other obligations | Various | Various | 113,257 | 92,568 | Various | ||||||||||
Total debt and other obligations | 10,788,522 | 11,611,242 | |||||||||||||
Less: current maturities and short-term debt and other current obligations | 97,013 | 688,056 | |||||||||||||
Non-current portion of long-term debt and other long-term obligations | $ | 10,691,509 | $ | 10,923,186 |
(a) | Represents the weighted-average stated interest rate. |
(b) | As of June 30, 2013, the undrawn availability under the $1.5 billion 2012 Revolver is $454.0 million. |
(c) | The 2012 Revolver and the Term Loan A bear interest at a per annum rate equal to LIBOR plus 2.0% to 2.75%, based on CCOC's total net leverage ratio. In April 2013, the Company refinanced the outstanding Term Loan B with a new loan pursuant to our existing credit agreement in an aggregate principal amount of $1.58 billion. The terms of the new Term Loan B are substantially the same as the terms of the refinanced Term Loan B and effectively lowered the rate on the loan by 75 basis points. Term Loan B currently bears interest at a per annum rate equal to LIBOR plus 2.25% to 2.5% (with LIBOR subject to a floor of 0.75% per annum), based on CCOC's total net leverage ratio. |
(d) | If the respective series of the January 2010 Tower Revenue Notes and August 2010 Tower Revenue Notes are not paid in full on or prior to 2015, 2017 and 2020, as applicable, then Excess Cash Flow (as defined in the indenture) of the issuers (of such notes) will be used to repay principal of the applicable series and class of the 2010 Tower Revenue Notes, and additional interest (of approximately 5% per annum) will accrue on the respective 2010 Tower Revenue Notes. The January 2010 Tower Revenue Notes consist of three series of notes with principal amounts of $300.0 million, $350.0 million and $1.3 billion, having anticipated repayment dates in 2015, 2017 and 2020, respectively. The August 2010 Tower Revenue Notes consist of three series of notes with principal amounts of $250.0 million, $300.0 million and $1.0 billion, having anticipated repayment dates in 2015, 2017 and 2020, respectively. |
(e) | The 2009 Securitized Notes consist of $119.1 million of principal as of June 30, 2013 that amortizes through 2019, and $70.0 million of principal as of June 30, 2013 that amortizes during the period beginning in 2019 and ending in 2029. |
(f) | The anticipated repayment date is 2015 for each class of the WCP Securitized Notes. If the WCP Securitized Notes are not repaid in full by their anticipated repayment dates, the applicable interest rate increases by an additional approximately 5% per annum. If the WCP Securitized Notes are not repaid in full by their rapid amortization date of 2017, monthly principal payments commence using the excess cash flows of the issuers of the WCP Securitized Notes. |
(g) | The 2012 Secured Notes consist of $500 million aggregate principal amount of 2.381% secured notes due 2017 and $1.0 billion aggregate principal amount of 3.849% secured notes due 2023. |
Six Months Ended December 31, | Years Ending December 31, | Unamortized Adjustments, Net | Total Debt and Other Obligations Outstanding | ||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total Cash Obligations | |||||||||||||||||||||||||||||
Scheduled contractual maturities | $ | 46,661 | $ | 101,906 | $ | 114,272 | $ | 115,110 | $ | 1,934,799 | $ | 8,467,889 | $ | 10,780,637 | $ | 7,885 | $ | 10,788,522 |
Six Months Ended June 30, 2013 | |||||||||||
Principal Amount | Cash Paid(a) | Gains (Losses)(c) | |||||||||
9% Senior Notes | 314,170 | 332,045 | (17,894 | ) | |||||||
7.75% Secured Notes(b) | 294,362 | 312,464 | (18,102 | ) | |||||||
5.25% Senior Notes | 30 | 30 | — | ||||||||
2012 Term Loans | 30,941 | 30,941 | (490 | ) | |||||||
Total | $ | 639,503 | $ | 675,480 | $ | (36,486 | ) |
(a) | Exclusive of accrued interest. |
(b) | The redemption of the 7.75% Secured Notes was funded by the release of restricted cash. |
(c) | The losses predominantly relate to cash losses, including with respect to make whole payments. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest expense on debt obligations | $ | 119,705 | $ | 120,625 | $ | 247,154 | $ | 233,632 | |||||||
Amortization of deferred financing costs | 5,013 | 5,278 | 14,060 | 10,090 | |||||||||||
Amortization of adjustments on long-term debt | (965 | ) | 2,961 | 10,471 | 6,724 | ||||||||||
Amortization of interest rate swaps(a) | 16,242 | 16,319 | 32,504 | 32,657 | |||||||||||
Other, net of capitalized interest | 261 | (243 | ) | 436 | (691 | ) | |||||||||
Total | $ | 140,256 | $ | 144,940 | $ | 304,625 | $ | 282,412 |
(a) | Amounts reclassified from accumulated other comprehensive income (loss). |
5. | Income Taxes |
6. | Fair Value Disclosures |
Level in Fair Value Hierarchy | June 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | 1 | $ | 126,886 | $ | 126,886 | $ | 441,364 | $ | 441,364 | ||||||||
Restricted cash, current and non-current | 1 | 166,541 | 166,541 | 580,938 | 580,938 | ||||||||||||
Liabilities: | |||||||||||||||||
Long-term debt and other obligations | 2 | 10,788,522 | 11,107,927 | 11,611,242 | 12,438,032 |
7. | Per Share Information |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) attributable to CCIC stockholders | $ | 52,359 | $ | 116,013 | $ | 67,821 | $ | 166,044 | |||||||
Dividends on preferred stock | — | — | — | (2,629 | ) | ||||||||||
Net income (loss) attributable to CCIC common stockholders after deduction of dividends on preferred stock for basic and diluted computations | $ | 52,359 | $ | 116,013 | $ | 67,821 | $ | 163,415 | |||||||
Weighted-average number of common shares outstanding (in thousands): | |||||||||||||||
Basic weighted-average number of common stock outstanding | 291,225 | 290,649 | 291,164 | 287,781 | |||||||||||
Effect of assumed dilution from potential common shares relating to stock options and restricted stock awards | 1,481 | 554 | 1,406 | 1,248 | |||||||||||
Diluted weighted-average number of common shares outstanding | 292,706 | 291,203 | 292,570 | 289,029 | |||||||||||
Net income (loss) attributable to CCIC common stockholders after deduction of dividends on preferred stock, per common share: | |||||||||||||||
Basic | $ | 0.18 | $ | 0.40 | $ | 0.23 | $ | 0.57 | |||||||
Diluted | $ | 0.18 | $ | 0.40 | $ | 0.23 | $ | 0.57 |
8. | Commitments and Contingencies |
9. | Equity |
10. | Operating Segments |
Three Months Ended June 30, 2013 | Three Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||
CCUSA | CCAL | Eliminations | Consolidated Total | CCUSA | CCAL | Eliminations | Consolidated Total | ||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||
Site rental | $ | 583,584 | $ | 33,265 | $ | — | $ | 616,849 | $ | 487,761 | $ | 29,827 | $ | — | $ | 517,588 | |||||||||||||||
Network services and other | 113,057 | 5,022 | — | 118,079 | 62,049 | 5,874 | — | 67,923 | |||||||||||||||||||||||
Net revenues | 696,641 | 38,287 | — | 734,928 | 549,810 | 35,701 | — | 585,511 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Costs of operations:(a) | |||||||||||||||||||||||||||||||
Site rental | 169,234 | 9,781 | — | 179,015 | 123,063 | 8,508 | — | 131,571 | |||||||||||||||||||||||
Network services and other | 66,035 | 4,164 | — | 70,199 | 36,846 | 3,416 | — | 40,262 | |||||||||||||||||||||||
General and administrative | 49,225 | 5,565 | — | 54,790 | 41,541 | 5,537 | — | 47,078 | |||||||||||||||||||||||
Asset write-down charges | 3,008 | 89 | — | 3,097 | 3,646 | — | — | 3,646 | |||||||||||||||||||||||
Acquisition and integration costs | 7,030 | 185 | — | 7,215 | 7,469 | 26 | — | 7,495 | |||||||||||||||||||||||
Depreciation, amortization and accretion | 183,304 | 7,347 | — | 190,651 | 144,793 | 7,689 | — | 152,482 | |||||||||||||||||||||||
Total operating expenses | 477,836 | 27,131 | — | 504,967 | 357,358 | 25,176 | — | 382,534 | |||||||||||||||||||||||
Operating income (loss) | 218,805 | 11,156 | — | 229,961 | 192,452 | 10,525 | — | 202,977 | |||||||||||||||||||||||
Interest expense and amortization of deferred financing costs | (140,256 | ) | (4,316 | ) | 4,316 | (140,256 | ) | (144,940 | ) | (5,000 | ) | 5,000 | (144,940 | ) | |||||||||||||||||
Gains (losses) on retirement of long-term obligations | (577 | ) | — | — | (577 | ) | (7,518 | ) | — | — | (7,518 | ) | |||||||||||||||||||
Interest income | 246 | 82 | — | 328 | 258 | 124 | — | 382 | |||||||||||||||||||||||
Other income (expense) | 4,808 | 15 | (4,316 | ) | 507 | 2,756 | (5 | ) | (5,000 | ) | (2,249 | ) | |||||||||||||||||||
Benefit (provision) for income taxes | (34,304 | ) | (2,283 | ) | — | (36,587 | ) | 68,921 | (489 | ) | — | 68,432 | |||||||||||||||||||
Net income (loss) | 48,722 | 4,654 | — | 53,376 | 111,929 | 5,155 | — | 117,084 | |||||||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | — | 1,017 | — | 1,017 | (58 | ) | 1,129 | — | 1,071 | ||||||||||||||||||||||
Net income (loss) attributable to CCIC stockholders | $ | 48,722 | $ | 3,637 | $ | — | $ | 52,359 | $ | 111,987 | $ | 4,026 | $ | — | $ | 116,013 | |||||||||||||||
Capital expenditures | $ | 134,513 | $ | 3,954 | $ | — | $ | 138,467 | $ | 88,687 | $ | 5,958 | $ | — | $ | 94,645 |
(a) | Exclusive of depreciation, amortization and accretion shown separately. |
Six Months Ended June 30, 2013 | Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||
CCUSA | CCAL | Eliminations | Consolidated Total | CCUSA | CCAL | Eliminations | Consolidated Total | ||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||||
Site rental | 1,164,851 | 67,413 | — | $ | 1,232,264 | 955,880 | 59,237 | — | $ | 1,015,117 | |||||||||||||||||||||
Network services and other | 230,918 | 11,806 | — | 242,724 | 109,017 | 13,122 | — | 122,139 | |||||||||||||||||||||||
Net revenues | 1,395,769 | 79,219 | — | 1,474,988 | 1,064,897 | 72,359 | — | 1,137,256 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Costs of operations:(a) | |||||||||||||||||||||||||||||||
Site rental | 336,826 | 19,795 | — | 356,621 | 237,007 | 17,435 | — | 254,442 | |||||||||||||||||||||||
Network services and other | 137,884 | 9,692 | — | 147,576 | 63,648 | 8,135 | — | 71,783 | |||||||||||||||||||||||
General and administrative | 101,786 | 11,249 | — | 113,035 | 85,194 | 12,885 | — | 98,079 | |||||||||||||||||||||||
Asset write-down charges | 6,611 | 201 | — | 6,812 | 6,679 | 11 | — | 6,690 | |||||||||||||||||||||||
Acquisition and integration costs | 8,631 | 186 | — | 8,817 | 9,121 | 54 | — | 9,175 | |||||||||||||||||||||||
Depreciation, amortization and accretion | 362,430 | 14,680 | — | 377,110 | 276,434 | 15,448 | — | 291,882 | |||||||||||||||||||||||
Total operating expenses | 954,168 | 55,803 | — | 1,009,971 | 678,083 | 53,968 | — | 732,051 | |||||||||||||||||||||||
Operating income (loss) | 441,601 | 23,416 | — | 465,017 | 386,814 | 18,391 | — | 405,205 | |||||||||||||||||||||||
Interest expense and amortization of deferred financing costs | (304,625 | ) | (8,762 | ) | 8,762 | (304,625 | ) | (282,399 | ) | (10,337 | ) | 10,324 | (282,412 | ) | |||||||||||||||||
Gains (losses) on retirement of long-term obligations | (36,486 | ) | — | — | (36,486 | ) | (14,586 | ) | — | — | (14,586 | ) | |||||||||||||||||||
Interest income | 449 | 176 | — | 625 | 455 | 281 | — | 736 | |||||||||||||||||||||||
Other income (expense) | 8,628 | 12 | (8,762 | ) | (122 | ) | 7,043 | (45 | ) | (10,324 | ) | (3,326 | ) | ||||||||||||||||||
Benefit (provision) for income taxes | (49,917 | ) | (4,378 | ) | — | (54,295 | ) | 62,747 | (1,010 | ) | — | 61,737 | |||||||||||||||||||
Net income (loss) | 59,650 | 10,464 | — | 70,114 | 160,074 | 7,280 | — | 167,354 | |||||||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | — | 2,293 | — | 2,293 | (268 | ) | 1,578 | — | 1,310 | ||||||||||||||||||||||
Net income (loss) attributable to CCIC stockholders | $ | 59,650 | $ | 8,171 | $ | — | $ | 67,821 | $ | 160,342 | $ | 5,702 | $ | — | $ | 166,044 | |||||||||||||||
Capital expenditures | 247,713 | 7,107 | $ | — | $ | 254,820 | $ | 150,901 | $ | 8,796 | $ | — | $ | 159,697 |
(a) | Exclusive of depreciation, amortization and accretion shown separately. |