HOUSTON, July 18, 2018 (GLOBE NEWSWIRE) -- Crown Castle International Corp. (NYSE: CCI) ("Crown Castle") today reported results for the quarter ended June 30, 2018.

2018 Outlook for Organic Contribution to Site Rental Revenues, Growth in Site Rental Revenues ($ in millions) 2018 Outlook for AFFO growth ($ in millions)

"We delivered another terrific quarter of results, and remain on track to generate attractive growth in cash flows and dividends per share for the full year 2018," stated Jay Brown, Crown Castle’s Chief Executive Officer. "Over the past two decades, we have built and acquired an unmatched portfolio of more than 40,000 towers and 60,000 route miles of dense, high capacity fiber in the top U.S. markets, where we see the greatest long-term demand from multiple customers. We believe our ability to offer towers, small cells and fiber solutions, which are all integral components of communications networks, is the best strategy to pursue this significant growth opportunity while generating high returns for our shareholders by sharing our assets among multiple tenants. Based on our experience, we believe that the U.S. represents the best market in the world for communications infrastructure ownership and we have a differentiated strategy to pursue that compelling opportunity. With the positive momentum we continue to see in our towers and fiber segments, we remain dedicated to investing in our business to generate future growth while delivering near-term dividend per share growth of 7% to 8% per year."

RESULTS FOR THE QUARTERThe table below sets forth select financial results for the three month period ended June 30, 2018 and 2017. For further information, refer to the financial statements and non-GAAP, segment and other calculation reconciliations included in this press release.

(in millions)	Actual								MidpointQ2 2018Outlook(b)		ActualCompared toOutlook
	Q2 2018		Q2 2017		Change		% Change
Site rental revenues	$1,169		$869		+$300		+35	%	$1,158		+$11
Net income (loss)	$180		$112		+$68		+61	%	$152		+$28
Adjusted EBITDA(a)	$769		$589		+$180		+31	%	$762		+$7
AFFO(a)(c)	$546		$440		+$106		+24	%	$544		+$2
Weighted-average common shares outstanding - diluted	416		366		+50		+14	%	416		—

Note: Figures may not tie due to rounding.

1. See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
2. As issued on April 18, 2018.
3. Attributable to CCIC common stockholders.

HIGHLIGHTS FROM THE QUARTER

• Site rental revenues. Site rental revenues grew approximately 35%, or $300 million, from second quarter 2017 to second quarter 2018, inclusive of approximately $49 million in Organic Contribution to Site Rental Revenues plus $231 million in contributions from acquisitions and other items, plus a $20 million increase in straight-lined revenues. The $49 million in Organic Contribution to Site Rental Revenues represents approximately 5.6% growth, comprised of approximately 8% growth from new leasing activity and contracted tenant escalations, net of approximately 2.5% from tenant non-renewals. When compared to the prior second quarter 2018 Outlook, site rental revenues benefited by approximately $9 million of additional straight-lined revenues primarily resulting from term extensions associated with leasing activity.
• Net income. Net income for second quarter 2018 was $180 million, compared to $112 million during the same period a year ago.
• Adjusted EBITDA. When compared to the second quarter 2018 Outlook, Adjusted EBITDA benefited by approximately $9 million of additional straight-lined revenues, partially offset by the timing of certain network services contribution that is now expected to contribute to Adjusted EBITDA during the remainder of 2018.
• Capital expenditures. Capital expenditures during the quarter were $393 million, comprised of $10 million of land purchases, $26 million of sustaining capital expenditures, $356 million of revenue generating capital expenditures and $1 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. During the quarter, Crown Castle increased the commitments under its Senior Unsecured Revolving Credit Facility by $750 million and extended the maturity date on its Senior Unsecured Credit Facility to June 2023. In July, Crown Castle issued $1.0 billion of Senior Secured Tower Revenue Notes with net proceeds from the offering and cash on hand used to retire $1.0 billion of existing Senior Secured Tower Revenue Notes. With these financings, the weighted average maturity of outstanding debt was extended to 6.5 years while the weighted average interest rate was reduced to 3.9%.

"The momentum we see across the business has translated into solid financial results and an 11% year-over-year growth in dividends per share during the first half of 2018, demonstrating how well positioned Crown Castle is to capitalize on the positive tailwinds creating demand for our communications infrastructure," stated Dan Schlanger, Crown Castle's Chief Financial Officer. "With our recent refinancings, we have increased our financial flexibility, positioning us to continue to invest in our business and create significant value for our shareholders by leveraging our leading portfolio of towers and high-capacity fiber assets."

OUTLOOKThis Outlook section contains forward-looking statements, and actual results may differ materially. Information regarding potential risks which could cause actual results to differ from the forward-looking statements herein is set forth below and in Crown Castle's filings with the Securities and Exchange Commission ("SEC").

The following table sets forth Crown Castle's current Outlook for third quarter 2018 and full year 2018:

(in millions)	Third Quarter 2018					Full Year 2018
Site rental revenues	$1,172		to	$1,182		$4,673		to	$4,703
Site rental cost of operations(a)	$345		to	$355		$1,382		to	$1,412
Net income (loss)	$126		to	$151		$603		to	$663
Adjusted EBITDA(b)	$785		to	$795		$3,132		to	$3,162
Interest expense and amortization of deferred financing costs(c)	$156		to	$166		$627		to	$657
FFO(b)(d)	$490		to	$500		$2,014		to	$2,044
AFFO(b)(d)	$568		to	$578		$2,263		to	$2,293
Weighted-average common shares outstanding - diluted(e)	416					415

1. Exclusive of depreciation, amortization and accretion.
2. See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
3. See reconciliation of "components of interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense.
4. Attributable to CCIC common stockholders.
5. The assumption for third quarter 2018 and full year 2018 diluted weighted-average common shares outstanding is based on the diluted common shares outstanding as of June 30, 2018. For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.

• Compared to second quarter 2018, the midpoints of third quarter 2018 Outlook for Adjusted EBITDA and AFFO are expected to benefit from a higher network services contribution and lower cash tax payments.

Full Year 2018 OutlookThe table below compares the results for full year 2017, midpoint of the current full year 2018 Outlook and the midpoint of the previously provided full year 2018 Outlook for select metrics.

	Midpoint of FY 2018 Outlook to FY 2017 Actual Comparison
(in millions)	CurrentFull Year2018 Outlook		Full Year2017 Actual		Change		% Change		Previous Full Year 2018 Outlook(d)		CurrentCompared to Previous Outlook
Site rental revenues	$4,688		$3,669		+$1,019		+28	%	$4,662		+$26
Net income (loss)	$633		$445		+$188		+42	%	$629		+$4
Adjusted EBITDA(a)	$3,147		$2,482		+$665		+27	%	$3,120		+$27
AFFO(a)(b)	$2,278		$1,860		+$418		+22	%	$2,278		—
Weighted-average common shares outstanding - diluted(c)	415		383		+32		+8	%	415		—

1. See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
2. Attributable to CCIC common stockholders.
3. The assumption for full year 2018 diluted weighted-average common shares outstanding is based on diluted common shares outstanding as of June 30, 2018. For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.
4. As issued on April 18, 2018.

• The chart below reconciles the components of expected growth in site rental revenues from 2017 to 2018 of $1,005 million to $1,035 million, inclusive of expected Organic Contribution to Site Rental Revenues during 2018 of $190 million to $220 million.
• The increases in full year 2018 Outlook reflect a higher expected contribution from straight-lined revenues. The increase to expected straight-lined revenues primarily reflects the impact of term extensions associated with leasing activity.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/c1f978e3-c552-43c5-a17a-d30c509e141b

• For the above chart, the entire expected contribution to full year 2018 Outlook for growth in site rental revenues from Lightower is included within acquisitions.
• The chart below reconciles the components of expected growth in AFFO from 2017 to 2018 of $400 million to $430 million.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/378f1a8b-4f75-4c51-801e-90ae4a87e990

• Additional information is available in Crown Castle's quarterly Supplemental Information Package posted in the Investors section of its website.

CONFERENCE CALL DETAILSCrown Castle has scheduled a conference call for Thursday, July 19, 2018, at 10:30 a.m. Eastern time to discuss its second quarter 2018 results. The conference call may be accessed by dialing 877-260-1479 and asking for the Crown Castle call (access code 9212580) at least 30 minutes prior to the start time. The conference call may also be accessed live over the Internet at http://investor.crowncastle.com. Supplemental materials for the call have been posted on the Crown Castle website at http://investor.crowncastle.com.

A telephonic replay of the conference call will be available from 1:30 p.m. Eastern time on Thursday, July 19, 2018, through 1:30 p.m. Eastern time on Wednesday, October 17, 2018, and may be accessed by dialing 888-203-1112 and using access code 9212580. An audio archive will also be available on the company's website at http://investor.crowncastle.com shortly after the call and will be accessible for approximately 90 days.

ABOUT CROWN CASTLECrown Castle owns, operates and leases more than 40,000 cell towers and approximately 60,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service - bringing information, ideas and innovations to the people and businesses that need them. For more information on Crown Castle, please visit www.crowncastle.com.

Non-GAAP Financial Measures, Segment Measures and Other Calculations

This press release includes presentations of Adjusted EBITDA, Adjusted Funds from Operations ("AFFO"), Funds from Operations ("FFO") and Organic Contribution to Site Rental Revenues, which are non-GAAP financial measures. These non-GAAP financial measures are not intended as alternative measures of operating results or cash flow from operations (as determined in accordance with Generally Accepted Accounting Principles ("GAAP")).

Our measures of Adjusted EBITDA, AFFO, FFO and Organic Contribution to Site Rental Revenues may not be comparable to similarly titled measures of other companies, including other companies in the communications infrastructure sector or other real estate investment trusts ("REITs"). Our definition of FFO is consistent with guidelines from the National Association of Real Estate Investment Trusts with the exception of the impact of income taxes in periods prior to our REIT conversion in 2014.

In addition to the non-GAAP financial measures used herein, we also provide Segment Site Rental Gross Margin, Segment Network Services and Other Gross Margin and Segment Operating Profit, which are key measures used by management to evaluate our operating segments for purposes of making decisions about allocating capital and assessing performance. These segment measures are provided pursuant to GAAP requirements related to segment reporting. In addition, we provide the components of certain GAAP measures, such as capital expenditures.

Adjusted EBITDA, AFFO, FFO and Organic Contribution to Site Rental Revenues are presented as additional information because management believes these measures are useful indicators of the financial performance of our business. Among other things, management believes that:

• Adjusted EBITDA is useful to investors or other interested parties in evaluating our financial performance. Adjusted EBITDA is the primary measure used by management (1) to evaluate the economic productivity of our operations and (2) for purposes of making decisions about allocating resources to, and assessing the performance of, our operations. Management believes that Adjusted EBITDA helps investors or other interested parties meaningfully evaluate and compare the results of our operations (1) from period to period and (2) to our competitors, by removing the impact of our capital structure (primarily interest charges from our outstanding debt) and asset base (primarily depreciation, amortization and accretion) from our financial results. Management also believes Adjusted EBITDA is frequently used by investors or other interested parties in the evaluation of the communications infrastructure sector and other REITs to measure financial performance without regard to items such as depreciation, amortization and accretion which can vary depending upon accounting methods and the book value of assets. In addition, Adjusted EBITDA is similar to the measure of current financial performance generally used in our debt covenant calculations. Adjusted EBITDA should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.
• AFFO is useful to investors or other interested parties in evaluating our financial performance. Management believes that AFFO helps investors or other interested parties meaningfully evaluate our financial performance as it includes (1) the impact of our capital structure (primarily interest expense on our outstanding debt and dividends on our preferred stock) and (2) sustaining capital expenditures, and excludes the impact of our (a) asset base (primarily depreciation, amortization and accretion) and (b) certain non-cash items, including straight-lined revenues and expenses related to fixed escalations and rent free periods. GAAP requires rental revenues and expenses related to leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. In accordance with GAAP, if payment terms call for fixed escalations, or rent free periods, the revenue or expense is recognized on a straight-lined basis over the fixed, non-cancelable term of the contract. Management notes that Crown Castle uses AFFO only as a performance measure. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance and should not be considered as an alternative to cash flows from operations or as residual cash flow available for discretionary investment.
• FFO is useful to investors or other interested parties in evaluating our financial performance. Management believes that FFO may be used by investors or other interested parties as a basis to compare our financial performance with that of other REITs. FFO helps investors or other interested parties meaningfully evaluate financial performance by excluding the impact of our asset base (primarily depreciation, amortization and accretion). FFO is not a key performance indicator used by Crown Castle. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance and should not be considered as an alternative to cash flow from operations.
• Organic Contribution to Site Rental Revenues is useful to investors or other interested parties in understanding the components of the year-over-year changes in our site rental revenues computed in accordance with GAAP. Management uses the Organic Contribution to Site Rental Revenues to assess year-over-year growth rates for our rental activities, to evaluate current performance, to capture trends in rental rates, new leasing activities and customer non-renewals in our core business, as well to forecast future results. Organic Contribution to Site Rental Revenues is not meant as an alternative measure of revenue and should be considered only as a supplement in understanding and assessing the performance of our site rental revenues computed in accordance with GAAP.

We define our non-GAAP financial measures, segment measures and other calculations as follows:

Non-GAAP Financial Measures

Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges, acquisition and integration costs, depreciation, amortization and accretion, amortization of prepaid lease purchase price adjustments, interest expense and amortization of deferred financing costs, (gains) losses on retirement of long-term obligations, net (gain) loss on interest rate swaps, (gains) losses on foreign currency swaps, impairment of available-for-sale securities, interest income, other (income) expense, (benefit) provision for income taxes, cumulative effect of a change in accounting principle, (income) loss from discontinued operations and stock-based compensation expense.

Adjusted Funds from Operations. We define Adjusted Funds from Operations as FFO before straight-lined revenue, straight-lined expense, stock-based compensation expense, non-cash portion of tax provision, non-real estate related depreciation, amortization and accretion, amortization of non-cash interest expense, other (income) expense, (gains) losses on retirement of long-term obligations, net (gain) loss on interest rate swaps, (gains) losses on foreign currency swaps, acquisition and integration costs, and adjustments for noncontrolling interests, and less sustaining capital expenditures (comprised of capital improvement capital expenditures and corporate capital expenditures).

Funds from Operations. We define Funds from Operations as net income plus real estate related depreciation, amortization and accretion and asset write-down charges, less noncontrolling interest and cash paid for preferred stock dividends, and is a measure of funds from operations attributable to CCIC common stockholders.

Organic Contribution to Site Rental Revenues. We define the Organic Contribution to Site Rental Revenues as the sum of the change in GAAP site rental revenues related to (1) new leasing activity, including revenues from the construction of small cells and the impact of prepaid rent, (2) escalators and less (3) non-renewals of customer contracts.

Segment Measures

Segment Site Rental Gross Margin. We define Segment Site Rental Gross Margin as segment site rental revenues less segment site rental cost of operations, excluding stock-based compensation expense and prepaid lease purchase price adjustments recorded in consolidated site rental cost of operations.

Segment Network Services and Other Gross Margin. We define Segment Network Services and Other Gross Margin as segment network services and other revenues less segment network services and other cost of operations, excluding stock-based compensation expense recorded in consolidated network services and other cost of operations.

Segment Operating Profit. We define Segment Operating Profit as segment site rental gross margin plus segment network services and other gross margin, less general and administrative expenses attributable to the respective segment.

Other Calculations

Discretionary capital expenditures. We define discretionary capital expenditures as those capital expenditures made with respect to activities which we believe exhibit sufficient potential to enhance long-term stockholder value. They consist of expansion or development of existing communications infrastructure, construction of new communications infrastructure, and, to a lesser extent, purchases of land interests (which primarily relate to land assets under towers as we seek to manage our interests in the land beneath our towers) and other capital projects.

Sustaining capital expenditures. We define sustaining capital expenditures as those capital expenditures made with respect to either (1) corporate capital expenditures or (2) capital improvement capital expenditures on our communications infrastructure assets that enable our customers' ongoing quiet enjoyment of the communications infrastructure.

Integration capital expenditures. We define integration capital expenditures as those capital expenditures made specifically with respect to recent acquisitions that are essential to integrating acquired companies into our business.

The tables set forth below reconcile the non-GAAP financial measures used herein to comparable GAAP financial measures. The components in these tables may not sum to the total due to rounding. The Company has changed its presentation to millions and, as a result, any necessary rounding adjustments have been made to prior year disclosed amounts.

Reconciliations of Non-GAAP Financial Measures, Segment Measures and Other Calculations to Comparable GAAP Financial Measures:

Reconciliation of Historical Adjusted EBITDA:

	For the Three Months Ended								For the Twelve Months Ended
	June 30, 2018				June 30, 2017				December 31, 2017
(in millions)
Net income (loss)	$	180			$	112			$	445
Adjustments to increase (decrease) net income (loss):
Asset write-down charges	6				4				17
Acquisition and integration costs	8				8				61
Depreciation, amortization and accretion	379				296				1,242
Amortization of prepaid lease purchase price adjustments	5				5				20
Interest expense and amortization of deferred financing costs(a)	158				142				591
(Gains) losses on retirement of long-term obligations	3				—				4
Interest income	(1		)		(1		)		(19		)
Other (income) expense	—				1				(1		)
(Benefit) provision for income taxes	5				5				26
Stock-based compensation expense	26				17				96
Adjusted EBITDA(b)(c)	$	769			$	589			$	2,482

1. See the reconciliation of "components of interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense.
2. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definition of Adjusted EBITDA.
3. The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.

Reconciliation of Current Outlook for Adjusted EBITDA:

	Q3 2018							Full Year 2018
(in millions)	Outlook							Outlook
Net income (loss)	$	126		to	$	151		$	603		to	$	663
Adjustments to increase (decrease) net income (loss):
Asset write-down charges	$	9		to	$	11		$	25		to	$	35
Acquisition and integration costs	$	16		to	$	20		$	45		to	$	55
Depreciation, amortization and accretion	$	378		to	$	398		$	1,513		to	$	1,548
Amortization of prepaid lease purchase price adjustments	$	4		to	$	6		$	19		to	$	21
Interest expense and amortization of deferred financing costs(a)	$	156		to	$	166		$	627		to	$	657
(Gains) losses on retirement of long-term obligations	$	33		to	$	33		$	107		to	$	107
Interest income	$	(1	)	to	$	1		$	(4	)	to	$	0
Other (income) expense	$	(1	)	to	$	3		$	2		to	$	4
(Benefit) provision for income taxes	$	7		to	$	11		$	24		to	$	32
Stock-based compensation expense	$	25		to	$	29		$	101		to	$	109
Adjusted EBITDA(b)(c)	$	785		to	$	795		$	3,132		to	$	3,162

1. See the reconciliation of "components of historical interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense.
2. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definition of Adjusted EBITDA.
3. The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.

Reconciliation of Historical FFO and AFFO:

	For the Three Months Ended								For the Six Months Ended								For the Twelve Months Ended
(in millions)	June 30, 2018				June 30, 2017				June 30, 2018				June 30, 2017				December 31, 2017
Net income (loss)	$	180			$	112			$	294			$	231			$	445
Real estate related depreciation, amortization and accretion	367				289				726				569				1,211
Asset write-down charges	6				4				9				5				17
Dividends on preferred stock	(28		)		—				(57		)		—				(30		)
FFO(a)(b)(c)(d)(e)	$	525			$	405			$	973			$	806			$	1,643
FFO (from above)	$	525			$	405			$	973			$	806			$	1,643
Adjustments to increase (decrease) FFO:
Straight-lined revenue	(20		)		1				(36		)		—				—
Straight-lined expense	23				23				47				46				93
Stock-based compensation expense	26				17				52				42				96
Non-cash portion of tax provision	(7		)		(5		)		(3		)		(1		)		9
Non-real estate related depreciation, amortization and accretion	12				7				27				15				31
Amortization of non-cash interest expense	1				3				4				5				9
Other (income) expense	—				1				1				(4		)		(2		)
(Gains) losses on retirement of long-term obligations	3				—				74				4				4
Acquisition and integration costs	8				8				14				14				61
Capital improvement capital expenditures	(18		)		(9		)		(31		)		(16		)		(41		)
Corporate capital expenditures	(8		)		(10		)		(17		)		(19		)		(44		)
AFFO(a)(b)(c)(d)(e)	$	546			$	440			$	1,104			$	890			$	1,860

1. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of FFO and AFFO.
2. FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid.
3. Diluted weighted-average common shares outstanding were 416 million, 366 million, 413 million, 364 million and 383 million for the three months ended June 30, 2018 and 2017, the six months ended June 30, 2018 and 2017 and the twelve months ended December 31, 2017, respectively. For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.
4. The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
5. Attributable to CCIC common stockholders.

Reconciliation of Current Outlook for FFO and AFFO:

	Q3 2018								Full Year 2018
(in millions)	Outlook								Outlook
Net income (loss)	$	126		to	$	151			$	603		to	$	663
Real estate related depreciation, amortization and accretion	$	370		to	$	380			$	1,469		to	$	1,489
Asset write-down charges	$	9		to	$	11			$	25		to	$	35
Dividends on preferred stock	$	(28	)	to	$	(28	)		$	(113	)	to	$	(113	)
FFO(a)(b)(c)(d)(e)	$	490		to	$	500			$	2,014		to	$	2,044
FFO (from above)	$	490		to	$	500			$	2,014		to	$	2,044
Adjustments to increase (decrease) FFO:
Straight-lined revenue	$	(18	)	to	$	(8	)		$	(65	)	to	$	(45	)
Straight-lined expense	$	16		to	$	26			$	79		to	$	99
Stock-based compensation expense	$	25		to	$	29			$	101		to	$	109
Non-cash portion of tax provision	$	1		to	$	11			$	0		to	$	15
Non-real estate related depreciation, amortization and accretion	$	8		to	$	18			$	44		to	$	59
Amortization of non-cash interest expense	$	(1	)	to	$	4			$	2		to	$	12
Other (income) expense	$	(1	)	to	$	3			$	2		to	$	4
(Gains) losses on retirement of long-term obligations	$	33		to	$	33			$	107		to	$	107
Acquisition and integration costs	$	16		to	$	20			$	45		to	$	55
Capital improvement capital expenditures	$	(14	)	to	$	(4	)		$	(71	)	to	$	(56	)
Corporate capital expenditures	$	(26	)	to	$	(16	)		$	(59	)	to	$	(44	)
AFFO(a)(b)(c)(d)(e)	$	568		to	$	578			$	2,263		to	$	2,293

1. The assumption for third quarter 2018 and full year 2018 diluted weighted-average common shares outstanding is 416 million and 415 million, respectively, based on diluted common shares outstanding as of June 30, 2018. For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.
2. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion for our definitions of FFO and AFFO.
3. FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid.
4. The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
5. Attributable to CCIC common stockholders.

For Comparative Purposes - Reconciliation of Previous Outlook for Adjusted EBITDA:

	Previously Issued							Previously Issued
	Q2 2018							Full Year 2018
(in millions)	Outlook							Outlook
Net income (loss)	$	139		to	$	164		$	589		to	$	669
Adjustments to increase (decrease) net income (loss):
Asset write-down charges	$	9		to	$	11		$	28		to	$	38
Acquisition and integration costs	$	13		to	$	17		$	45		to	$	55
Depreciation, amortization and accretion	$	373		to	$	393		$	1,517		to	$	1,552
Amortization of prepaid lease purchase price adjustments	$	4		to	$	6		$	19		to	$	21
Interest expense and amortization of deferred financing costs	$	154		to	$	164		$	616		to	$	661
(Gains) losses on retirement of long-term obligations	$	0		to	$	0		$	71		to	$	71
Interest income	$	(1	)	to	$	1		$	(3	)	to	$	1
Other (income) expense	$	(1	)	to	$	3		$	3		to	$	5
(Benefit) provision for income taxes	$	8		to	$	12		$	28		to	$	36
Stock-based compensation expense	$	26		to	$	30		$	104		to	$	112
Adjusted EBITDA(a)(b)	$	757		to	$	767		$	3,097		to	$	3,142

1. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definition of Adjusted EBITDA.
2. The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.

For Comparative Purposes - Reconciliation of Previous Outlook for FFO and AFFO:

	Previously Issued								Previously Issued
	Q2 2018								Full Year 2018
(in millions)	Outlook								Outlook
Net income (loss)	$	139		to	$	164			$	589		to	$	669
Real estate related depreciation, amortization and accretion	$	363		to	$	373			$	1,466		to	$	1,486
Asset write-down charges	$	9		to	$	11			$	28		to	$	38
Dividends on preferred stock	$	(28	)	to	$	(28	)		$	(113	)	to	$	(113	)
FFO(a)(b)(c)(d)	$	496		to	$	506			$	2,002		to	$	2,047
FFO (from above)	$	496		to	$	506			$	2.002		to	$	2,047
Adjustments to increase (decrease) FFO:
Straight-lined revenue	$	(16	)	to	$	(6	)		$	(39	)	to	$	(19	)
Straight-lined expense	$	17		to	$	27			$	77		to	$	97
Stock-based compensation expense	$	26		to	$	30			$	104		to	$	112
Non-cash portion of tax provision	$	(7	)	to	$	3			$	3		to	$	18
Non-real estate related depreciation, amortization and accretion	$	10		to	$	20			$	51		to	$	66
Amortization of non-cash interest expense	$	(1	)	to	$	4			$	3		to	$	13
Other (income) expense	$	(1	)	to	$	3			$	3		to	$	5
(Gains) losses on retirement of long-term obligations	$	0		to	$	0			$	71		to	$	71
Acquisition and integration costs	$	13		to	$	17			$	45		to	$	55
Capital improvement capital expenditures	$	(19	)	to	$	(9	)		$	(67	)	to	$	(52	)
Corporate capital expenditures	$	(18	)	to	$	(8	)		$	(64	)	to	$	(49	)
AFFO(a)(b)(c)(d)	$	539		to	$	549			$	2,255		to	$	2,300

1. Previously issued second quarter 2018 and full year 2018 Outlook assumes diluted weighted-average common shares outstanding as of March 31, 2018 of 416 million and 415 million, respectively. For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.
2. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion for our definitions of FFO and AFFO.
3. The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
4. Attributable to CCIC common stockholders.

The components of changes in site rental revenues for the quarters ended June 30, 2018 and 2017 are as follows:

	Three Months Ended June 30,
(in millions)	2018				2017
Components of changes in site rental revenues(a):
Prior year site rental revenues exclusive of straight-lined revenues associated with fixed escalators(b)(c)	$	870			$	788
New leasing activity(b)(c)	51				45
Escalators	20				21
Non-renewals	(22		)		(24		)
Organic Contribution to Site Rental Revenues(d)	49				42
Straight-lined revenues associated with fixed escalators	20				(1		)
Acquisitions(e)	231				40
Other	—				—
Total GAAP site rental revenues	$	1,169			$	869
Year-over-year changes in revenue:
Reported GAAP site rental revenues	34.5		%
Organic Contribution to Site Rental Revenues(d)(f)	5.6		%

1. Additional information regarding Crown Castle's site rental revenues, including projected revenue from customer licenses, tenant non-renewals, straight-lined revenues and prepaid rent is available in Crown Castle's quarterly Supplemental Information Package posted in the Investors section of its website.
2. Includes revenues from amortization of prepaid rent in accordance with GAAP.
3. Includes revenues from the construction of new small cell nodes, exclusive of straight-lined revenues related to fixed escalators.
4. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein.
5. Represents the initial contribution of recent acquisitions. The financial impact of recent acquisitions is excluded from Organic Contribution to Site Rental Revenues until the one-year anniversary of the acquisition.
6. Calculated as the percentage change from prior year site rental revenues, exclusive of straight-lined revenues associated with fixed escalations, compared to Organic Contribution to Site Rental Revenues for the current period.

The components of the changes in site rental revenues for the year ending December 31, 2018 are forecasted as follows:

(dollars in millions)	Full Year 2017				Full Year 2018 Outlook
Components of changes in site rental revenues(a):
Prior year site rental revenues exclusive of straight-lined revenues associated with fixed escalators(b)(c)	$	3,186			$3,670
New leasing activity(b)(c)		166			$190-$220
Escalators		84			$80-$90
Non-renewals		(90	)		($90)-($80)
Organic Contribution to Site Rental Revenues(d)		160			$190-$220
Straight-lined revenues associated with fixed escalators		—			$45-$65
Acquisitions(e)		323			$745-$765
Other		—			—
Total GAAP site rental revenues	$	3,669			$4,673-$4,703
Year-over-year changes in revenue:
Reported GAAP site rental revenues(f)					27.8%
Organic Contribution to Site Rental Revenues(d)(f)(g)					5.6%

1. Additional information regarding Crown Castle's site rental revenues, including projected revenue from customer licenses, tenant non-renewals, straight-lined revenues and prepaid rent is available in Crown Castle's quarterly Supplemental Information Package posted in the Investors section of its website.
2. Includes revenues from amortization of prepaid rent in accordance with GAAP.
3. Includes revenues from the construction of new small cell nodes, exclusive of straight-lined revenues related to fixed escalators.
4. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein.
5. Represents the contribution from recent acquisitions. The financial impact of recent acquisitions is excluded from Organic Contribution to Site Rental Revenues until the one-year anniversary of the acquisition, with the exception of the impact of Lightower, which has been reflected as a contribution from acquisitions for the Full Year 2018 Outlook.
6. Calculated based on midpoint of Full Year 2018 Outlook.
7. Calculated as the percentage change from prior year site rental revenues, exclusive of straight-lined revenues associated with fixed escalations, compared to Organic Contribution to Site Rental Revenues for the current period.

Components of Historical Interest Expense and Amortization of Deferred Financing Costs:

	For the Three Months Ended
(in millions)	June 30, 2018				June 30, 2017
Interest expense on debt obligations	$	157			$	139
Amortization of deferred financing costs and adjustments on long-term debt, net	5				5
Other, net	(4		)		(2		)
Interest expense and amortization of deferred financing costs	$	158			$	142

Components of Current Outlook for Interest Expense and Amortization of Deferred Financing Costs:

	Q3 2018								Full Year 2018
(in millions)	Outlook								Outlook
Interest expense on debt obligations	$	157		to	$	162			$	630		to	$	640
Amortization of deferred financing costs and adjustments on long-term debt, net	$	4		to	$	7			$	19		to	$	24
Other, net	$	(5	)	to	$	(3	)		$	(17	)	to	$	(12	)
Interest expense and amortization of deferred financing costs	$	156		to	$	166			$	627		to	$	657

Debt balances and maturity dates as of June 30, 2018 are as follows:

(in millions)	Face Value			Final Maturity
Bank debt - variable rate:
2016 Revolver	$	315		Jun. 2023
2016 Term Loan A	2,386			Jun. 2023
Total bank debt	2,701
Securitized debt - fixed rate:
Secured Notes, Series 2009-1, Class A-1(a)	23			Aug. 2019
Secured Notes, Series 2009-1, Class A-2(a)	70			Aug. 2029
Tower Revenue Notes, Series 2010-6(b)	1,000			Aug. 2040
Tower Revenue Notes, Series 2015-1(b)	300			May 2042
Tower Revenue Notes, Series 2015-2(b)	700			May 2045
Total securitized debt	2,093
Bonds - fixed rate:
5.250% Senior Notes	1,650			Jan. 2023
3.849% Secured Notes	1,000			Apr. 2023
4.875% Senior Notes	850			Apr. 2022
3.400% Senior Notes	850			Feb. 2021
4.450% Senior Notes	900			Feb. 2026
3.700% Senior Notes	750			June 2026
2.250% Senior Notes	700			Sept. 2021
4.000% Senior Notes	500			Mar. 2027
4.750% Senior Notes	350			May 2047
3.200% Senior Notes	750			Sept. 2024
3.650% Senior Notes	1,000			Sept. 2027
3.150% Senior Notes	750			Feb. 2023
3.800% Senior Notes	1,000			Feb. 2028
Total bonds	11,050
Capital leases and other obligations	222			Various
Total Debt	$	16,066
Less: Cash and Cash Equivalents(c)	$	206
Net Debt	$	15,860

1. The Senior Secured Notes, Series 2009-1, Class A-1 principal amortizes during the period beginning in January 2010 and ending in 2019 and the Senior Secured Notes, 2009-1, Class A-2 principal amortizes during the period beginning in 2019 and ending in 2029.
2. The Senior Secured Tower Revenue Notes Series 2015-1 and 2015-2 have anticipated repayment dates in 2022 and 2025, respectively. In July 2018, the Company issued $1.0 billion of Senior Secured Tower Revenue Notes, Series 2018-1 and Series 2018-2 with anticipated repayment dates in 2023 and 2028, respectively. The Company used the proceeds from such offering, together with cash on hand, to repay the previously outstanding Senior Secured Tower Revenue Notes, Series 2010-6, which had an anticipated repayment date in 2020.
3. Excludes restricted cash.

Net Debt to Last Quarter Annualized Adjusted EBITDA is computed as follows:

(dollars in millions)	For the Three Months Ended June 30, 2018
Total face value of debt	$	16,066
Ending cash and cash equivalents(a)	206
Total Net Debt	$	15,860
Adjusted EBITDA for the three months ended June 30, 2018	$	769
Last quarter annualized Adjusted EBITDA	3,076
Net Debt to Last Quarter Annualized Adjusted EBITDA	5.2		x

1. Excludes restricted cash.

Components of Capital Expenditures:

	For the Three Months Ended
(in millions)	June 30, 2018													June 30, 2017
	Towers			Fiber			Other			Total				Towers			Fiber			Other			Total
Discretionary:
Purchases of land interests	$	10		$	—		$	—		$	10			$	21		$	—		$	—		$	21
Communications infrastructure construction and improvements	77			279			—			356				76			184			—			260
Sustaining:
Capital improvement and corporate	11			11			4			26				9			4			6			19
Integration	—			—			1			1				—			—			—			—
Total	$	98		$	289		$	5		$	393			$	107		$	188		$	6		$	301

Note: See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for further discussion of our components of capital expenditures.

Cautionary Language Regarding Forward-Looking Statements

This press release contains forward-looking statements and information that are based on our management's current expectations. Such statements include our Outlook and plans, projections, and estimates regarding (1) potential benefits, returns, opportunities and customer and shareholder value which may be derived from our business, assets, investments, acquisitions and dividends, including on a long-and short-term basis, (2) our strategy, strategic position, business model and capabilities and the strength of our business, (3) our growth, including growth in our cash flows and dividends per share, long-term prospects and the trends impacting our business, (4) the potential benefits and contributions which may be derived from our recent acquisitions, such as Lightower, including the contribution to or impact on our financial or operating results, inclusive of site rental revenues, Adjusted EBITDA, AFFO and Organic Contribution to Site Rental Revenues, (5) impact of the recent refinancings and the potential benefits which may be derived therefrom, (6) leasing environment and activity, including the contribution to our financial or operating results therefrom, (7) our investments in our business and communications infrastructure assets and the potential growth, returns and benefits therefrom, (8) our dividends and our dividend growth rate and targets, (9) strategic position of and demand for our communications infrastructure and services, (10) cash flows, (11) tenant non-renewals, including the impact thereof, (12) capital expenditures, including sustaining capital expenditures, (13) straight-line adjustments, (14) site rental revenues and estimated growth thereof, (15) site rental cost of operations, (16) net income (loss), (17) Adjusted EBITDA, including the impact thereon of timing items, (18) expenses, including interest expense, and amortization of deferred financing costs, (19) FFO, (20) AFFO and estimated growth thereof, (21) Organic Contribution to Site Rental Revenues, (22) our weighted-average common shares outstanding, including on a diluted basis, (23) network services contribution and (24) the utility of certain financial measures, including non-GAAP financial measures. Such forward-looking statements are subject to certain risks, uncertainties and assumptions prevailing market conditions and the following:

• Our business depends on the demand for our communications infrastructure, driven primarily by demand for data, and we may be adversely affected by any slowdown in such demand. Additionally, a reduction in the amount or change in the mix of network investment by our customers may materially and adversely affect our business (including reducing demand for tenant additions and network services).
• A substantial portion of our revenues is derived from a small number of customers, and the loss, consolidation or financial instability of any of such customers may materially decrease revenues or reduce demand for our communications infrastructure and network services.
• The expansion or development of our business, including through acquisitions, increased product offerings or other strategic growth opportunities may cause disruptions in our business, which may have an adverse effect on our business, operations or financial results. Additionally, we may fail to realize all of the anticipated benefits of the Lightower acquisition, or those benefits may take longer to realize than expected.
• Our fiber segment has expanded rapidly, and the fiber business model contains certain differences from our towers business model, resulting in different operational risks. If we do not successfully operate our Fiber business model or identify or manage the related operational risks, such operations may produce results that are less than anticipated.
• Failure to timely and efficiently execute on our construction projects could adversely affect our business.
• Our substantial level of indebtedness could adversely affect our ability to react to changes in our business, and the terms of our debt instruments and our 6.875% Mandatory Convertible Preferred Stock limit our ability to take a number of actions that our management might otherwise believe to be in our best interests. In addition, if we fail to comply with our covenants, our debt could be accelerated.
• We have a substantial amount of indebtedness. In the event we do not repay or refinance such indebtedness, we could face substantial liquidity issues and might be required to issue equity securities or securities convertible into equity securities, or sell some of our assets to meet our debt payment obligations.
• Sales or issuances of a substantial number of shares of our common stock or securities convertible into shares of our common stock may adversely affect the market price of our common stock.
• As a result of competition in our industry, we may find it more difficult to negotiate favorable rates on our new or renewing tenant contracts.
• New technologies may reduce demand for our communications infrastructure or negatively impact our revenues.
• If we fail to retain rights to our communications infrastructure, including the land interests under our towers and the right-of-way and other agreements related to our small cells and fiber solutions, our business may be adversely affected.
• Our network services business has historically experienced significant volatility in demand, which reduces the predictability of our results.
• New wireless technologies may not deploy or be adopted by customers as rapidly or in the manner projected.
• If we fail to comply with laws or regulations which regulate our business and which may change at any time, we may be fined or even lose our right to conduct some of our business.
• If radio frequency emissions from wireless handsets or equipment on our communications infrastructure are demonstrated to cause negative health effects, potential future claims could adversely affect our operations, costs or revenues.
• Certain provisions of our restated certificate of incorporation, amended and restated by-laws and operative agreements, and domestic and international competition laws may make it more difficult for a third party to acquire control of us or for us to acquire control of a third party, even if such a change in control would be beneficial to our stockholders.
• We may be vulnerable to security breaches that could adversely affect our business, operations, and reputation.
• Future dividend payments to our stockholders will reduce the availability of our cash on hand available to fund future discretionary investments, and may result in a need to incur indebtedness or issue equity securities to fund growth opportunities. In such event, the then current economic, credit market or equity market conditions will impact the availability or cost of such financing, which may hinder our ability to grow our per share results of operations.
• Remaining qualified to be taxed as a REIT involves highly technical and complex provisions of the U.S. Internal Revenue Code. Failure to remain qualified as a REIT would result in our inability to deduct dividends to stockholders when computing our taxable income, which would reduce our available cash.
• If we fail to pay scheduled dividends on our 6.875% Mandatory Convertible Preferred Stock, in cash, common stock, or any combination of cash and common stock, we will be prohibited from paying dividends on our common stock, which may jeopardize our status as a REIT.
• Complying with REIT requirements, including the 90% distribution requirement, may limit our flexibility or cause us to forgo otherwise attractive opportunities, including certain discretionary investments and potential financing alternatives.
• REIT related ownership limitations and transfer restrictions may prevent or restrict certain transfers of our capital stock.

Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the SEC. As used in this release, the term "including," and any variation thereof, means "including without limitation."

CROWN CASTLE INTERNATIONAL CORP.CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)(Amounts in millions, except par values)

	June 30, 2018				December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	206			$	314
Restricted cash	125				121
Receivables, net	455				398
Prepaid expenses	197				162
Other current assets	181				139
Total current assets	1,164				1,134
Deferred site rental receivables	1,303				1,300
Property and equipment, net	13,218				12,933
Goodwill	10,075				10,021
Other intangible assets, net	5,729				5,962
Long-term prepaid rent and other assets, net	885				879
Total assets	$	32,374			$	32,229
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	272			$	249
Accrued interest	154				132
Deferred revenues	476				457
Other accrued liabilities	272				339
Current maturities of debt and other obligations	112				115
Total current liabilities	1,286				1,292
Debt and other long-term obligations	15,844				16,044
Other long-term liabilities	2,678				2,554
Total liabilities	19,808				19,890
Commitments and contingencies
CCIC stockholders' equity:
Common stock, $0.01 par value; 600 shares authorized; shares issued and outstanding: June 30, 2018—415 and December 31, 2017—406	4				4
6.875% Mandatory Convertible Preferred Stock, Series A, $0.01 par value; 20 shares authorized; shares issued and outstanding: June 30, 2018—2 and December 31, 2017—2; aggregate liquidation value: June 30, 2018—$1,650 and December 31, 2017—$1,650	—				—
Additional paid-in capital	17,711				16,844
Accumulated other comprehensive income (loss)	(5		)		(4		)
Dividends/distributions in excess of earnings	(5,144		)		(4,505		)
Total equity	12,566				12,339
Total liabilities and equity	$	32,374			$	32,229

CROWN CASTLE INTERNATIONAL CORP.CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)(Amounts in millions, except per share amounts)

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
Net revenues:
Site rental	$	1,169			$	869			$	2,323			$	1,726
Network services and other	161				169				307				328
Net revenues	1,330				1,038				2,630				2,054
Operating expenses:
Costs of operations (exclusive of depreciation, amortization and accretion):
Site rental	355				269				702				534
Network services and other	99				104				185				203
General and administrative	138				98				273				199
Asset write-down charges	6				4				9				5
Acquisition and integration costs	8				8				14				14
Depreciation, amortization and accretion	379				296				753				584
Total operating expenses	985				779				1,936				1,539
Operating income (loss)	345				259				694				515
Interest expense and amortization of deferred financing costs	(158		)		(142		)		(318		)		(276		)
Gains (losses) on retirement of long-term obligations	(3		)		—				(74		)		(4		)
Interest income	1				1				2				1
Other income (expense)	—				(1		)		(1		)		4
Income (loss) from continuing operations before income taxes	185				117				303				240
Benefit (provision) for income taxes	(5		)		(5		)		(9		)		(9		)
Net income (loss)	180				112				294				231
Dividends on preferred stock	(28		)		—				(57		)		—
Net income (loss) attributable to CCIC common stockholders	$	152			$	112			$	237			$	231
Net income (loss) attributable to CCIC common stockholders, per common share:
Net income (loss) attributable to CCIC common stockholders, basic	$	0.37			$	0.31			$	0.58			$	0.64
Net income (loss) attributable to CCIC common stockholders, diluted	$	0.36			$	0.31			$	0.57			$	0.64
Weighted-average common shares outstanding:
Basic	415				364				412				363
Diluted	416				366				413				364

CROWN CASTLE INTERNATIONAL CORP.CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)(a)(In millions of dollars)

	Six Months Ended June 30,
	2018				2017
Cash flows from operating activities:
Net income (loss)	$	294			$	231
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation, amortization and accretion	753				584
(Gains) losses on retirement of long-term obligations	74				4
Amortization of deferred financing costs and other non-cash interest	4				5
Stock-based compensation expense	47				45
Asset write-down charges	9				5
Deferred income tax (benefit) provision	1				—
Other non-cash adjustments, net	1				(3		)
Changes in assets and liabilities, excluding the effects of acquisitions:
Increase (decrease) in liabilities	78				17
Decrease (increase) in assets	(150		)		43
Net cash provided by (used for) operating activities	1,111				931
Cash flows from investing activities:
Payments for acquisitions, net of cash acquired	(18		)		(2,104		)
Capital expenditures	(763		)		(563		)
Other investing activities, net	3				(8		)
Net cash provided by (used for) investing activities	(778		)		(2,675		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	1,743				1,345
Principal payments on debt and other long-term obligations	(47		)		(60		)
Purchases and redemptions of long-term debt	(1,318		)		—
Borrowings under revolving credit facility	485				1,755
Payments under revolving credit facility	(1,150		)		(1,405		)
Payments for financing costs	(20		)		(11		)
Net proceeds from issuance of common stock	841				464
Purchases of common stock	(34		)		(23		)
Dividends/distributions paid on common stock	(879		)		(696		)
Dividends paid on preferred stock	(57		)		—
Net cash provided by (used for) financing activities	(436		)		1,369
Net increase (decrease) in cash, cash equivalents, and restricted cash	(103		)		(375		)
Effect of exchange rate changes	(1		)		1
Cash, cash equivalents, and restricted cash at beginning of period(a)	440				697
Cash, cash equivalents, and restricted cash at end of period(a)	$	336			$	323
Supplemental disclosure of cash flow information:
Interest paid	292				260
Income taxes paid	12				10

1. Effective January 1, 2018, the Company is required to explain the change in restricted cash in addition to the change in cash and cash equivalents in its condensed consolidated statement of cash flows. The Company has applied this approach for all periods presented.

CROWN CASTLE INTERNATIONAL CORP.SEGMENT OPERATING RESULTS (UNAUDITED)(In millions of dollars)

SEGMENT OPERATING RESULTS
	Three Months Ended June 30, 2018																Three Months Ended June 30, 2017
	Towers				Fiber				Other				Consolidated Total				Towers				Fiber				Other				Consolidated Total
Segment site rental revenues	$	771			$	398							$	1,169			$	718			$	151							$	869
Segment network services and other revenue	158				3								161				158				11								169
Segment revenues	929				401								1,330				876				162								1,038
Segment site rental cost of operations	216				130								346				211				52								263
Segment network services and other cost of operations	94				3								97				96				8								104
Segment cost of operations(a)	310				133								443				307				60								367
Segment site rental gross margin(b)	555				268								823				507				99								606
Segment network services and other gross margin(b)	64				—								64				62				3								65
Segment general and administrative expenses(a)	27				44								71				23				19								42
Segment operating profit(b)	592				224								816				546				83								629
Other general and administrative expenses(a)									$	47			47												$	41			41
Stock-based compensation expense									26				26												17				17
Depreciation, amortization and accretion									379				379												296				296
Interest expense and amortization of deferred financing costs									158				158												142				142
Other income (expenses) to reconcile to income (loss) from continuing operations before income taxes(c)									21				21												16				16
Income (loss) from continuing operations before income taxes													$	185															$	117

1. Segment cost of operations excludes (1) stock-based compensation expense of $6 million and $2 million for the three months ended June 30, 2018 and 2017, respectively and (2) prepaid lease purchase price adjustments of $5 million for both of the three months ended June 30, 2018 and 2017. General and administrative expenses exclude stock-based compensation expense of $20 million and $15 million for the three months ended June 30, 2018 and 2017, respectively.
2. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of segment site rental gross margin, segment network services and other gross margin and segment operating profit.
3. See condensed consolidated statement of operations for further information.

SEGMENT OPERATING RESULTS
	Six Months Ended June 30, 2018																Six Months Ended June 30, 2017
	Towers				Fiber				Other				Consolidated Total				Towers				Fiber				Other				Consolidated Total
Segment site rental revenues	$	1,536			$	787							$	2,323			$	1,434			$	292							$	1,726
Segment network services and other revenue	300				7								307				308				20								328
Segment revenues	1,836				794								2,630				1,742				312								2,054
Segment site rental cost of operations	427				256								683				420				99								519
Segment network services and other cost of operations	176				5								181				185				17								202
Segment cost of operations(a)	603				261								864				605				116								721
Segment site rental gross margin(b)	1,109				531								1,640				1,014				193								1,207
Segment network services and other gross margin(b)	124				2								126				123				3								126
Segment general and administrative expenses(a)	53				87								140				47				36								83
Segment operating profit(b)	1,180				446								1,626				1,090				160								1,250
Other general and administrative expenses(a)									$	94			94												$	80			80
Stock-based compensation expense									52				52												42				42
Depreciation, amortization and accretion									753				753												584				584
Interest expense and amortization of deferred financing costs									318				318												276				276
Other income (expenses) to reconcile to income (loss) from continuing operations before income taxes(c)									106				106												28				28
Income (loss) from continuing operations before income taxes													$	303															$	240

1. Segment cost of operations excludes (1) stock-based compensation expense of $13 million and $6 million for the six months ended June 30, 2018 and 2017, respectively and (2) prepaid lease purchase price adjustments of $10 million for both of the six months ended June 30, 2018 and 2017. General and administrative expenses exclude stock-based compensation expense of $39 million and $36 million for the six months ended June 30, 2018 and 2017, respectively.
2. See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of segment site rental gross margin, segment network services and other gross margin and segment operating profit.
3. See condensed consolidated statement of operations for further information.

Contacts:	Dan Schlanger, CFO and Treasurer
	Ben Lowe, VP Corporate Finance
	Crown Castle International Corp.
	713-570-3050

Source: Crown Castle International Corporation

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Crown Castle (CCI) Tops Q2 EPS by 5c, Offers OutlookJuly 18, 2018 4:20 PM