Crown Castle (NYSE: CCI) reported Q1 EPS of $0.21, $0.05 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.3 billion.

HIGHLIGHTS FROM THE QUARTER

• Site rental revenues. Site rental revenues grew approximately 35%, or $296 million, from first quarter 2017 to first quarter 2018, inclusive of approximately $47 million in Organic Contribution to Site Rental Revenues plus $234 million in contributions from acquisitions and other items, plus a $15 million increase in straight-lined revenues. The $47 million in Organic Contribution to Site Rental Revenues represents approximately 5.5% growth, comprised of approximately 8% growth from new leasing activity and contracted tenant escalations, net of approximately 2.5% from tenant non-renewals. Site rental revenues for first quarter 2018 benefited by approximately $12 million from a long-term agreement signed with AT&T ("AT&T Agreement") that includes contracted new leasing activity across towers and small cells.
• Net income. Net income for first quarter 2018 was $114 million and was impacted by approximately $71 million of losses on the retirement of long-term obligations.
• Adjusted EBITDA. When compared to the prior first quarter 2018 Outlook, Adjusted EBITDA benefited by approximately $12 million from the AT&T Agreement.
• AFFO. When compared to the prior first quarter 2018 Outlook, AFFO for first quarter 2018 benefited from approximately $11 million of lower sustaining capital expenditures due to timing as those expenditures are expected to occur later in 2018.
• Capital expenditures and acquisitions. Capital expenditures during the quarter were approximately $370 million, comprised of approximately $14 million of land purchases, approximately $22 million of sustaining capital expenditures, approximately $328 million of revenue generating capital expenditures and approximately $6 million of integration capital expenditures.
• Common stock dividend. During the quarter, Crown Castle paid common stock dividends of $1.05 per common share, an increase of approximately 11% compared to the same period a year ago.
• Financing activities. Crown Castle issued $1.75 billion in aggregate principal amount of senior unsecured notes in January and sold 7.765 million shares of its common stock in March ("March Equity Offering"), resulting in additional gross proceeds of approximately $850 million. Net proceeds from both transactions were used for general corporate purposes, including the repayment of existing indebtedness.
• Overall Results. Adjusted for the benefit associated with the AT&T Agreement and the timing of the sustaining capital expenditures, first quarter 2018 results exceeded the midpoint of the prior first quarter 2018 Outlook for site rental revenues, Adjusted EBITDA and AFFO.

For earnings history and earnings-related data on Crown Castle (CCI) click here.