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Crown Castle Reports Fourth Quarter and Full Year 2018 Results, Raises Outlook for Full Year 2019

Crown Castle Reports Fourth Quarter and Full Year 2018 Results, Raises Outlook for Full Year 2019

HOUSTON, Jan. 23, 2019 (GLOBE NEWSWIRE) -- Crown Castle International Corp. (CCI) ("Crown Castle") today reported results for the quarter and year ended December 31, 2018.

"We closed out another year of growth with solid results in the fourth quarter and increased our Outlook for 2019, demonstrating the strong fundamentals across our business," stated Jay Brown, Crown Castle’s Chief Executive Officer. "We are excited about the opportunity we see to leverage the unmatched portfolio of more than 40,000 towers and 65,000 route miles of dense, high capacity fiber that we have built and acquired over the past two decades in the top U.S. markets where we see the greatest long-term demand.  We continue to believe our ability to offer towers, small cells and fiber solutions, which are all integral components of communications networks and are shared among multiple tenants, provides us the best opportunity to generate significant growth while delivering high returns for our shareholders.  Further, we believe that the U.S. is the best market for communications infrastructure ownership, and we are pursuing that compelling opportunity with our comprehensive offering.  With the positive momentum we continue to see in our towers and fiber segments, we remain focused on investing in our business to generate future growth and delivering dividend per share growth of 7% to 8% per year."

RESULTS FOR THE QUARTER
The table below sets forth select financial results for the three month period ended December 31, 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 Midpoint 
Q4 2018
Outlook(b)
Actual
Compared to
Outlook
Q4 2018 Q4 2017 Change % Change
Site rental revenues $1,209 $1,051 +$158 +15 % $1,194 +$15
Net income (loss) $213 $98 +$115 +117 % $214 -$1
Adjusted EBITDA(a) $816 $707 +$109 +15 % $825 -$8
AFFO(a)(c) $591 $512 +$79 +15 % $596 -$5
Weighted-average common shares outstanding - diluted   417   408   +9 +2 % 416 +1

Note: Figures may not tie due to rounding.

(a) See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
(b) As issued on October 17, 2018.
(c) Attributable to CCIC common stockholders.

HIGHLIGHTS FROM THE QUARTER

  • Site rental revenues.  Site rental revenues grew approximately 15%, or $158 million, from fourth quarter 2017 to fourth quarter 2018, inclusive of approximately $59 million in Organic Contribution to Site Rental Revenues, $82 million in contributions from acquisitions and other items, and a $17 million increase in straight-lined revenues.  The $59 million in Organic Contribution to Site Rental Revenues represents approximately 5.6% growth, comprised of approximately 7.7% growth from new leasing activity and contracted tenant escalations, net of approximately 2.1% from tenant non-renewals.  When compared to the prior fourth quarter 2018 Outlook issued on October 17, 2018, site rental revenues were approximately $15 million higher than expected and included approximately $10 million of additional straight-lined revenues primarily resulting from term extensions associated with leasing activity.
  • Net income.  Net income for fourth quarter 2018 was $213 million, compared to $98 million during the same period a year ago.
  • Adjusted EBITDA.  When compared to the prior fourth quarter 2018 Outlook, Adjusted EBITDA was impacted by approximately $10 million of higher costs associated with the combination of additional accruals for annual bonuses relating to full year 2018 results and expenses related to certain natural disasters that occurred during the fourth quarter.  In addition, Adjusted EBITDA was also impacted by approximately $5 million of lower services contribution that is now expected to contribute to Adjusted EBITDA in 2019.
  • Capital expenditures.  Capital expenditures during the quarter were $500 million, comprised of $18 million of land purchases, $30 million of sustaining capital expenditures, $447 million of revenue generating capital expenditures and $5 million of integration capital expenditures.  The revenue generating capital expenditures of $447 million included $349 million attributable to Fiber and $98 million attributable to Towers.
  • Common stock dividend.  During the quarter, Crown Castle paid common stock dividends of $1.125 per common share, an increase of approximately 7% on a per share basis compared to the same period a year ago.

RESULTS FOR THE YEAR
The table below sets forth select financial results for the year ended December 31, 2018.  For further information, refer to the financial statements and non-GAAP and other calculation reconciliations included in this press release.

(in millions) Actual Midpoint
Full Year
2018
Outlook(b)
Actual
Compared to
Outlook
  2018   2017 Change % Change
Site rental revenues $4,716 $3,669 +$1,047 +29 % $4,701 +$15
Net income (loss) $671 $445 +$226 +51 % $672 -$1
Adjusted EBITDA(a) $3,141 $2,482 +$659 +27 % $3,149 -$8
AFFO(a)(c) $2,274 $1,860 +$414 +22 % $2,278 -$5
Weighted-average common shares outstanding - diluted   415   383   +32 +8 % 415

Note: Figures may not tie due to rounding

(a) See reconciliation of this non-GAAP financial measure to net income (loss) included herein.
(b) As issued on October 17, 2018.
(c) Attributable to CCIC common stockholders.

HIGHLIGHTS FROM THE YEAR

  • Site rental revenues.  Site rental revenues grew approximately 29%, or $1,047 million, from full year 2017 to full year 2018, inclusive of approximately $207 million in Organic Contribution to Site Rental Revenues, $767 million in contributions from acquisitions and other items, and a $73 million increase in straight-lined revenues.  The $207 million in Organic Contribution to Site Rental Revenues represents approximately 5.6% growth, comprised of approximately 8.0% growth from new leasing activity and contracted tenant escalations, net of approximately 2.4% from tenant non-renewals.
  • Capital expenditures.  Capital expenditures during the year were $1.7 billion, comprised of $56 million of land purchases, $105 million of sustaining capital expenditures, $1.6 billion of revenue generating capital expenditures and $13 million of integration capital expenditures.  The revenue generating capital expenditures of $1.6 billion included approximately $1.2 billion attributable to Fiber and approximately $350 million attributable to Towers.
  • Common stock dividend.  During the year, Crown Castle paid common stock dividends of approximately $1.8 billion in the aggregate, or $4.275 per common share, an increase of approximately 10% on a per share basis compared to the same period a year ago.

"Our positive 2018 results and increased full year 2019 Outlook reflect the strong underlying demand for our communications infrastructure assets and our team's continued focus on translating the robust growth in data demand into growth in dividends per share," stated Dan Schlanger, Crown Castle's Chief Financial Officer.  "Looking back on 2018, we had a very successful year.  We delivered 10% growth in dividends per share year over year, made significant investments in new fiber assets in top markets where we see the greatest demand for small cells and fiber solutions, substantially completed the integration of our recent acquisitions, all while improving our financial flexibility by proactively refinancing upcoming maturities and increasing the average maturity of our debt.  Looking forward, we are excited about the growth trends across our business and the long-term opportunity in front of Crown Castle as we continue to target 7% to 8% annual growth in dividends per share."

OUTLOOK
This 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").  As previously announced on October 17, 2018, the Outlook section of Crown Castle's quarterly earnings releases now includes Outlook for full year periods only.

The following table sets forth Crown Castle's current Outlook for full year 2019:

(in millions) Full Year 2019
Site rental revenues $4,939 to $4,984
Site rental cost of operations(a) $1,438 to $1,483
Net income (loss) $781 to $861
Adjusted EBITDA(b) $3,344 to $3,389
Interest expense and amortization of deferred financing costs(c) $687 to $732
FFO(b)(d) $2,293 to $2,338
AFFO(b)(d) $2,413 to $2,458
Weighted-average common shares outstanding - diluted(e) 417

(a) Exclusive of depreciation, amortization and accretion.
(b) See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
(c) See reconciliation of "components of current outlook for interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense.
(d) Attributable to CCIC common stockholders.
(e) The assumption for full year 2019 diluted weighted-average common shares outstanding is based on the diluted common shares outstanding as of December 31, 2018.  The diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.

Full Year 2019 Outlook
The table below compares the results for full year 2018, midpoint of the current full year 2019 Outlook and the midpoint of the previously provided full year 2019 Outlook for select metrics.

  Midpoint of FY 2019 Outlook to FY 2018 Actual Comparison    
(in millions) Current
Full Year
2019 Outlook
Full Year
2018 Actual
Change % Change Previous Full Year 2019 Outlook(d) Current Compared to Previous Outlook
Site rental revenues $4,962 $4,716 +$246 +5 % $4,921 +$41
Net income (loss) $821 $671 +$150 +22 % $778 +$43
Adjusted EBITDA(a) $3,367 $3,141 +$226 +7 % $3,326 +$41
AFFO(a)(b) $2,436 $2,274 +$162 +7 % $2,436
Weighted-average common shares outstanding - diluted(c) 417 415 +2   416 +1

(a) See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
(b) Attributable to CCIC common stockholders.
(c) The assumption for full year 2019 diluted weighted-average common shares outstanding is based on the diluted common shares outstanding as of December 31, 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.
(d) As issued on October 17, 2018.

  • When compared to the prior full year 2019 Outlook, the increase to the expected growth in site rental revenues relates to the expected increase in straight-lined revenues primarily resulting from term extensions associated with leasing activity.
  • At the midpoints, the expected Organic Contribution to Site Rental Revenues from 2018 to 2019 represents 6.0% growth year over year compared to 5.6% for full year 2018, comprised of approximately 9.8% growth from new leasing activity and contracted tenant escalations, net of approximately 3.8% from tenant non-renewals.
  • The chart below reconciles the components of expected growth in site rental revenues from 2018 to 2019 of $223 million to $268 million, inclusive of expected Organic Contribution to Site Rental Revenues during 2019 of $260 million to $300 million.
    A chart accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/94746045-21ff-4713-950f-2f59af26b5d3
  • The chart below reconciles the components of expected growth in AFFO from 2018 to 2019 of $140 million to $185 million.
    A chart accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/eda99c75-44bc-48ad-b874-c615d6c58676
  • When compared to the prior full year 2019 Outlook, the Outlook for AFFO is unchanged.
  • Additional information is available in Crown Castle's quarterly Supplemental Information Package posted in the Investors section of its website.

CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, January 24, 2019, at 10:30 a.m. Eastern time to discuss its fourth quarter 2018 results.  The conference call may be accessed by dialing 888-204-4368 and asking for the Crown Castle call (access code 3601569) 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, January 24, 2019, through 1:30 p.m. Eastern time on Wednesday, April 24, 2019, and may be accessed by dialing 888-203-1112 and using access code 3601569.  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 CASTLE
Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 65,000 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 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 maintenance 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 Services and Other Gross Margin.  We define Segment Services and Other Gross Margin as segment services and other revenues less segment services and other cost of operations, excluding stock-based compensation expense recorded in consolidated services and other cost of operations.

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

All of these measurements of profit or loss are exclusive of depreciation, amortization and accretion, which are shown separately.

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.

Integration capital expenditures.  We define integration capital expenditures as those capital expenditures made as a result of integrating acquired companies into our business.

Sustaining capital expenditures.  We define sustaining capital expenditures as those capital expenditures not otherwise categorized as either discretionary or integration capital expenditures, such as (1) maintenance capital expenditures on our communications infrastructure assets that enable our customers' ongoing quiet enjoyment of the communications infrastructure and (2) corporate capital expenditures.

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
  December 31, 2018   December 31, 2017   December 31, 2018   December 31, 2017
(in millions)              
Net income (loss) $ 213     $ 98     $ 671     $ 445  
Adjustments to increase (decrease) net income (loss):              
Asset write-down charges 8     7     26     17  
Acquisition and integration costs 9     34     27     61  
Depreciation, amortization and accretion 390     362     1,528     1,242  
Amortization of prepaid lease purchase price adjustments 5     5     20     20  
Interest expense and amortization of deferred financing costs(a) 164     160     642     591  
(Gains) losses on retirement of long-term obligations         106     4  
Interest income (2 )   (6 )   (5 )   (19 )
Other (income) expense (1 )   2     (1 )   (1 )
(Benefit) provision for income taxes 5     15     19     26  
Stock-based compensation expense 25     30     108     96  
Adjusted EBITDA(b)(c) $ 816     $ 707     $ 3,141     $ 2,482  

(a) See the reconciliation of "components of historical interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense.
(b) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definition of Adjusted EBITDA.
(c) 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:

  Full Year 2019
(in millions) Outlook
Net income (loss) $ 781   to $ 861  
Adjustments to increase (decrease) net income (loss):      
Asset write-down charges $ 35   to $ 45  
Acquisition and integration costs $ 15   to $ 25  
Depreciation, amortization and accretion $ 1,606   to $ 1,646  
Amortization of prepaid lease purchase price adjustments $ 19   to $ 21  
Interest expense and amortization of deferred financing costs(a) $ 687   to $ 732  
(Gains) losses on retirement of long-term obligations $ 0   to $ 0  
Interest income $ (7 ) to $ (3 )
Other (income) expense $ (1 ) to $ 1  
(Benefit) provision for income taxes $ 17   to $ 25  
Stock-based compensation expense $ 111   to $ 116  
Adjusted EBITDA(b)(c) $ 3,344   to $ 3,389  

(a) See the reconciliation of "components of current outlook for interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense.
(b) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definition of Adjusted EBITDA.
(c) 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 Twelve Months Ended
(in millions) December 31, 2018   December 31, 2017   December 31, 2018   December 31, 2017
Net income (loss) $ 213     $ 98     $ 671     $ 445  
Real estate related depreciation, amortization and accretion 375     354     1,472     1,211  
Asset write-down charges 8     7     26     17  
Dividends on preferred stock (28 )   (30 )   (113 )   (30 )
FFO(a)(b)(c)(d)(e) $ 568     $ 429     $ 2,055     $ 1,643  
               
FFO (from above) $ 568     $ 429     $ 2,055     $ 1,643  
Adjustments to increase (decrease) FFO:              
Straight-lined revenue (20 )   (3 )   (72 )    
Straight-lined expense 21     23     90     93  
Stock-based compensation expense 25     30     108     96  
Non-cash portion of tax provision 3     12     2     9  
Non-real estate related depreciation, amortization and accretion 15     8     56     31  
Amortization of non-cash interest expense 2     2     7     9  
Other (income) expense (1 )   2     (1 )   (1 )
(Gains) losses on retirement of long-term obligations         106     4  
Acquisition and integration costs 9     34     27     61  
Maintenance capital expenditures (17 )   (13 )   (64 )   (41 )
Corporate capital expenditures (13 )   (12 )   (41 )   (44 )
AFFO(a)(b)(c)(d)(e) $ 591     $ 512     $ 2,274     $ 1,860  


(a) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of FFO and AFFO.
(b) FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid.
(c) Diluted weighted-average common shares outstanding were 417 million, 408 million, 415 million and 383 million for the three months ended December 31, 2018 and 2017, and the twelve months ended December 31, 2018 and 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.
(d) The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(e) Attributable to CCIC common stockholders.

Reconciliation of Current Outlook for FFO and AFFO:

  Full Year 2019
(in millions) Outlook
Net income (loss) $ 781   to $ 861  
Real estate related depreciation, amortization and accretion $ 1,557   to $ 1,577  
Asset write-down charges $ 35   to $ 45  
Dividends on preferred stock $ (113 ) to $ (113 )
FFO(a)(b)(c)(d)(e) $ 2,293   to $ 2,338  
       
FFO (from above) $ 2,293   to $ 2,338  
Adjustments to increase (decrease) FFO:      
Straight-lined revenue $ (50 ) to $ (30 )
Straight-lined expense $ 70   to $ 90  
Stock-based compensation expense $ 111   to $ 116  
Non-cash portion of tax provision $ (4 ) to $ 6  
Non-real estate related depreciation, amortization and accretion $ 49   to $ 69  
Amortization of non-cash interest expense $ (2 ) to $ 8  
Other (income) expense $ (1 ) to $ 1  
(Gains) losses on retirement of long-term obligations $ 0   to $ 0  
Acquisition and integration costs $ 15   to $ 25  
Maintenance capital expenditures $ (80 ) to $ (70 )
Corporate capital expenditures $ (45 ) to $ (35 )
AFFO(a)(b)(c)(d)(e) $ 2,413   to $ 2,458  


(a) The assumption for full year 2019 diluted weighted-average common shares outstanding is 417 million based on the diluted common shares outstanding as of December 31, 2018.  The diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.
(b) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion for our definitions of FFO and AFFO.
(c) FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid. 
(d) The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(e) Attributable to CCIC common stockholders.

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

  Previously Issued   Previously Issued   Previously Issued
  Q4 2018   Full Year 2018   Full Year 2019
(in millions) Outlook   Outlook   Outlook
Net income (loss) $ 201   to $ 226   $ 659   to $ 684     $ 738   to $ 818  
Adjustments to increase (decrease) net income (loss):                      
Asset write-down charges $ 9   to $ 11   $ 27   to $ 29     $ 35   to $ 45  
Acquisition and integration costs $ 8   to $ 12   $ 26   to $ 30     $ 15   to $ 25  
Depreciation, amortization and accretion $ 381   to $ 401   $ 1,519   to $ 1,539     $ 1,609   to $ 1,644  
Amortization of prepaid lease purchase price adjustments $ 4   to $ 6   $ 19   to $ 21     $ 19   to $ 21  
Interest expense and amortization of deferred financing costs $ 160   to $ 170   $ 638   to $ 648     $ 691   to $ 736  
(Gains) losses on retirement of long-term obligations $ 0   to $ 0   $ 106   to $ 106     $ 0   to $ 0  
Interest income $ (2 ) to $ 0   $ (6 ) to $ (4 )   $ (7 ) to $ (3 )
Other (income) expense $ (1 ) to $ 3   $ (1 ) to $ 3     $ (1 ) to $ 1  
(Benefit) provision for income taxes $ 3   to $ 8   $ 16   to $ 21     $ 16   to $ 24  
Stock-based compensation expense $ 23   to $ 27   $ 107   to $ 111     $ 111   to $ 115  
Adjusted EBITDA(a)(b) $ 820   to $ 830   $ 3,144   to $ 3,154     $ 3,303   to $ 3,348  

(a) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definition of Adjusted EBITDA.
(b) 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   Previously Issued
  Q4 2018   Full Year 2018   Full Year 2019
(in millions) Outlook   Outlook   Outlook
Net income (loss) $ 201   to $ 226     $ 659   to $ 684     $ 738   to $ 818  
Real estate related depreciation, amortization and accretion $ 372   to $ 382     $ 1,469   to $ 1,479     $ 1,560   to $ 1,580  
Asset write-down charges $ 9   to $ 11     $ 27   to $ 29     $ 35   to $ 45  
Dividends on preferred stock $ (28 ) to $ (28 )   $ (113 ) to $ (113 )   $ (113 ) to $ (113 )
FFO(a)(b)(c)(d) $ 567   to $ 577     $ 2,055   to $ 2,065     $ 2,252   to $ 2,297  
                       
FFO (from above) $ 567   to $ 577     $ 2,055   to $ 2,065     $ 2,252   to $ 2,297  
Adjustments to increase (decrease) FFO:                      
Straight-lined revenue $ (15 ) to $ (5 )   $ (67 ) to $ (57 )   $ (9 ) to $ 11  
Straight-lined expense $ 16   to $ 26     $ 85   to $ 95     $ 68   to $ 88  
Stock-based compensation expense $ 23   to $ 27     $ 107   to $ 111     $ 111   to $ 115  
Non-cash portion of tax provision $ (2 ) to $ 3     $ (4 ) to $ 1     $ (7 ) to $ 8  
Non-real estate related depreciation, amortization and accretion $ 9   to $ 19     $ 50   to $ 60     $ 49   to $ 64  
Amortization of non-cash interest expense $ 0   to $ 4     $ 5   to $ 9     $ 2   to $ 12  
Other (income) expense $ (1 ) to $ 3     $ (1 ) to $ 3     $ (1 ) to $ 1  
(Gains) losses on retirement of long-term obligations $ 0   to $ 0     $ 106   to $ 106     $ 0   to $ 0  
Acquisition and integration costs $ 8   to $ 12     $ 26   to $ 30     $ 15   to $ 25  
Maintenance capital expenditures $ (20 ) to $ (10 )   $ (66 ) to $ (56 )   $ (85 ) to $ (75 )
Corporate capital expenditures $ (30 ) to $ (20 )   $ (59 ) to $ (49 )   $ (40 ) to $ (30 )
AFFO(a)(b)(c)(d) $ 591   to $ 601     $ 2,273   to $ 2,283     $ 2,413   to $ 2,458  


(a)  Previously issued fourth quarter 2018, full year 2018 and full year 2019 Outlook assumes diluted weighted-average common shares outstanding as of September 30, 2018 of approximately 416 million, 415 million and 416 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.
(b)  See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion for our definitions of FFO and AFFO.
(c)  The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(d)  Attributable to CCIC common stockholders.

The components of changes in site rental revenues for the quarters ended December 31, 2018 and 2017 are as follows:

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