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Crown Castle Reports Third Quarter 2019 Results, Provides Outlook for Full Year 2020 and Announces 7% Increase to Common Stock Dividend

Crown Castle Reports Third Quarter 2019 Results, Provides Outlook for Full Year 2020 and Announces 7% Increase to Common Stock Dividend

HOUSTON, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Crown Castle International Corp. (CCI) ("Crown Castle") today reported results for the quarter ended September 30, 2019, and issued its full year 2020 Outlook as reflected in the table below:

(in millions) Midpoint of
Current
Full Year
2020 Outlook
Midpoint of
Current
Full Year
2019 Outlook
Full Year
2018
Actual
Full Year 2019
Outlook to Full
Year 2020 Outlook
% Change
Full Year 2018 to
Full Year 2019
Outlook
% Change
Site rental revenues $5,219 $4,965 $4,716 +5% +5%
Net income (loss) $1,128 $926 $671 +22% +38%
Net income (loss) per share—diluted(a) $2.53 $1.95 $1.34 +30% +46%
Adjusted EBITDA(b) $3,592 $3,408 $3,141 +5% +9%
AFFO(a)(b) $2,685 $2,479 $2,274 +8% +9%
AFFO per share(a)(b) $6.33 $5.94 $5.48 +7% +8%

(a) Attributable to CCIC common stockholders.
(b) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" included herein for further information and reconciliation of this non-GAAP financial measure to net income (loss).

"We delivered terrific results in the third quarter and increased our annualized common stock dividend by 7% to $4.80 per share," stated Jay Brown, Crown Castle’s Chief Executive Officer.  "We 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. represents the best market in the world for communications infrastructure ownership, and we are pursuing that compelling opportunity with our comprehensive offering.

"In 2019, we  are experiencing the highest level of tower leasing activity in more than a decade, and we expect to generate a similar level of new leasing activity from towers in 2020 as our customers deploy additional cell sites and spectrum in response to the rapid growth in mobile data traffic.  Additionally, we are constructing small cells for our customers as they invest in their current networks while beginning the early stages of 5G deployments, and we expect to deploy a similar volume of small cells in 2020 as we are deploying in 2019.  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 while 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 September 30, 2019 and 2018.

(in millions) Q3 2019 Q3 2018 Change % Change
Site rental revenues $1,260 $1,184 +$76 +6%
Net income (loss) $272 $164 +$108 +66%
Net income (loss) per share—diluted(a) $0.58 $0.33 +$0.25 +76%
Adjusted EBITDA(b) $882 $793 +$89 +11%
AFFO(a)(b) $646 $579 +$67 +12%
AFFO per share(a)(b) $1.55 $1.39 +$0.16 +12%

(a) Attributable to CCIC common stockholders.
(b) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" included herein for further information and reconciliation of this non-GAAP financial measure to net income (loss).

HIGHLIGHTS FROM THE QUARTER

  • Site rental revenues.  Site rental revenues grew approximately 6.4%, or $76 million, from third quarter 2018 to third quarter 2019, inclusive of approximately $70 million in Organic Contribution to Site Rental Revenues and an approximately $6 million increase in straight-lined revenues.  The $70 million in Organic Contribution to Site Rental Revenues represents approximately 6.0% growth, comprised of approximately 9.7% growth from new leasing activity and contracted tenant escalations, net of approximately 3.7% from tenant non-renewals.
  • Net income.  Net income for the third quarter 2019 was $272 million, compared to $164 million during the same period a year ago.
  • Capital expenditures.  Capital expenditures during the quarter were $540 million, comprised of $18 million of land purchases, $29 million of sustaining capital expenditures, $491 million of discretionary capital expenditures and $2 million of integration capital expenditures.  The discretionary capital expenditures of $491 million includes $371 million attributable to Fiber and $120 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.
  • Financing activities.  During the quarter, Crown Castle issued $900 million of Senior Unsecured Notes, with net proceeds from the offering and cash on hand used to repay outstanding indebtedness under the revolving credit facility and commercial paper program.

"The strong third quarter results reflect our ability to leverage our leadership position in the U.S. across towers, small cells and fiber solutions to generate attractive growth," stated Dan Schlanger, Crown Castle's Chief Financial Officer.  "As we focus on closing out another successful year of growth in 2019 and look toward 2020, we are excited about the positive growth trends driving demand for our tower and fiber assets.  During the last five years, and inclusive of the dividend increase we are announcing today, we have increased our dividend by a compounded annual growth rate of approximately 8%.  Looking forward, we believe we are in a great position to deliver on our annual dividend growth target of 7% to 8% while at the same time making significant investments in our business that we believe will generate attractive long-term returns and support future growth."

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 SEC.

The following table sets forth Crown Castle's current Outlook for full year 2019 and full year 2020:

(in millions) Full Year 2019 Full Year 2020
Site rental revenues $4,950 to $4,980 $5,196 to $5,241
Site rental cost of operations(a) $1,442 to $1,472 $1,482 to $1,527
Net income (loss) $896 to $956 $1,088 to $1,168
Adjusted EBITDA(b) $3,393 to $3,423 $3,569 to $3,614
Interest expense and amortization of deferred financing costs(c) $674 to $704 $691 to $736
FFO(b)(d) $2,363 to $2,393 $2,539 to $2,584
AFFO(b)(d) $2,464 to $2,494 $2,662 to $2,707
Weighted-average common shares outstanding - diluted(e)  418  424

(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 diluted weighted-average common shares outstanding for full year 2019 Outlook is based on the diluted common shares outstanding as of September 30, 2019, and does not include any assumed conversion of preferred stock in the share count. The full year 2020 Outlook is inclusive of the assumed conversion of preferred stock in August 2020, which we expect to result in (1) an increase in the diluted weighted-average common shares outstanding by approximately 6 million shares and (2) a reduction in the amount of annual preferred stock dividends paid by approximately $28 million when compared to the full year 2019 Outlook.

Full Year 2019 and 2020 Outlook
The current full year 2019 Outlook remains unchanged from the prior full year 2019 Outlook issued on July 17, 2019.  The table below compares the midpoint of the full year 2020 Outlook and the midpoint of the full year 2019 Outlook for select metrics.

(in millions) Midpoint of
Current Full Year
2020 Outlook
Midpoint of
Current Full Year
2019 Outlook
Change % Change
Site rental revenues $5,219 $4,965 +$254 +5%
Net income (loss) $1,128 $926 +$202 +22%
Net income (loss) per share—diluted(a)(b) $2.53 $1.95 +$0.58 +30%
Adjusted EBITDA(c) $3,592 $3,408 +$184 +5%
AFFO(a)(c) $2,685 $2,479 +$206 +8%
AFFO per share(a)(b)(c) $6.33 $5.94 +$0.39 +7%
Weighted-average common shares outstanding - diluted(b)  424  418  +6 +1%

(a) Attributable to CCIC common stockholders.
(b) The assumption for diluted weighted-average common shares outstanding for full year 2019 Outlook is based on the diluted common shares outstanding as of September 30, 2019, and does not include any assumed conversion of preferred stock in the share count.  The full year 2020 Outlook is inclusive of the assumed conversion of preferred stock in August 2020, which we expect to result in (1) an increase in the diluted weighted-average common shares outstanding by approximately 6 million shares and (2) a reduction in the amount of annual preferred stock dividends paid by approximately $28 million when compared to the full year 2019 Outlook.  
(c) See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.

  • The full year 2020 Outlook assumes the proposed merger between T-Mobile and Sprint closes prior to the end of the first quarter 2020.
  • The 2020 Outlook also reflects the impact of the assumed conversion of preferred stock in August 2020.  This conversion will increase the diluted weighted average common shares outstanding for 2020 by approximately 6 million and reduce the annual preferred stock dividends paid by approximately $28 million when compared to 2019.
  • The chart below reconciles the components of expected growth in site rental revenues from 2019 to 2020 of $220 million to $265 million, inclusive of expected Organic Contribution to Site Rental Revenues during 2020 of $265 million to $305 million.
    Chart 1: https://www.globenewswire.com/NewsRoom/AttachmentNg/2ce1289e-1d70-4c18-9d2f-e1dd0f737671
  • New leasing activity is expected to contribute $365 million to $395 million to 2020 Organic Contribution to Site Rental Revenues, consisting of new leasing activity from towers of $140 million to $150 million (compares to $135 million to $145 million for 2019), small cells of $65 million to $75 million (consistent with 2019 activity), and fiber solutions of $160 million to $170 million (compares to $145 million to $155 million for 2019).
  • The Outlook also reflects an expected deployment of approximately 10,000 small cell nodes during 2020 (similar to expected deployment levels in 2019) and a consistent contribution to growth from fiber solutions when compared to 2019.
  • The chart below reconciles the components of expected growth in AFFO from 2019 to 2020 of $185 million to $230 million.
    Chart 2: https://www.globenewswire.com/NewsRoom/AttachmentNg/fb068b50-43cd-4b12-9f45-6f0a80798376
  • Additional information is available in Crown Castle's quarterly Supplemental Information Package posted in the Investors section of its website.

DIVIDEND INCREASE ANNOUNCEMENT
Crown Castle's Board of Directors has declared a quarterly cash dividend of $1.20 per common share, representing an increase of approximately 7% over the previous quarterly dividend of $1.125 per share.  The quarterly dividend will be payable on December 31, 2019 to common stockholders of record at the close of business on December 13, 2019.  Future dividends are subject to the approval of Crown Castle's Board of Directors.

CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, October 17, 2019, at 10:30 a.m. Eastern time to discuss its third quarter 2019 results.  The conference call may be accessed by dialing 800-367-2403 and asking for the Crown Castle call (access code 2038078) at least 30 minutes prior to the start time.  The conference call may also be accessed live over the Internet at investor.crowncastle.com.  Supplemental materials for the call have been posted on the Crown Castle website at investor.crowncastle.com.

A telephonic replay of the conference call will be available from 1:30 p.m. Eastern time on Thursday, October 17, 2019, through 1:30 p.m. Eastern time on Wednesday, January 15, 2020, and may be accessed by dialing 888-203-1112 and using access code 2038078.  An audio archive will also be available on the company's website at 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 more than 75,000 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"), including per share amounts, Funds from Operations ("FFO"), including per share amounts, 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 non-GAAP financial measures 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.  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.

Our non-GAAP financial measures 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, including per share amounts, 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, including per share amounts, 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 tenant 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.

AFFO per share. We define AFFO per share as AFFO divided by diluted weighted-average common shares outstanding.

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.

FFO per share. We define FFO per share as FFO divided by the diluted weighted-average common shares outstanding.

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 tenant 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.  Additionally, certain costs are shared across segments and are reflected in our segment measures through allocations that management believes to be reasonable.

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 primarily consist of expansion or development of communications infrastructure (including capital expenditures related to (1) enhancing communications infrastructure assets in order to add new tenants for the first time or support subsequent tenant equipment augmentations, or (2) modifying the structure of a communications infrastructure asset to accommodate additional tenants), and construction of new communications infrastructure.  Discretionary capital expenditures also include 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), certain technology-related investments necessary to support and scale future customer demand for our communications infrastructure 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 tenants' ongoing quiet enjoyment of the communications infrastructure and (2) ordinary corporate capital expenditures.

The tables set forth on the following pages 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.

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
  September 30, 2019   September 30, 2018   December 31, 2018
(in millions)          
Net income (loss) $ 272     $ 164     $ 671  
Adjustments to increase (decrease) net income (loss):          
Asset write-down charges 2     8     26  
Acquisition and integration costs 4     4     27  
Depreciation, amortization and accretion 389     385     1,528  
Amortization of prepaid lease purchase price adjustments 5     5     20  
Interest expense and amortization of deferred financing costs(a) 173     160     642  
(Gains) losses on retirement of long-term obligations     32     106  
Interest income (2 )   (1 )   (5 )
Other (income) expense 5     (1 )   (1 )
(Benefit) provision for income taxes 5     5     19  
Stock-based compensation expense 29     32     108  
Adjusted EBITDA(b)(c) $ 882     $ 793     $ 3,141  
                       

(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   Full Year 2020
(in millions) Outlook   Outlook
Net income (loss) $ 896   to $ 956     $ 1,088   to $ 1,168  
Adjustments to increase (decrease) net income (loss):              
Asset write-down charges $ 23   to $ 33     $ 20   to $ 30  
Acquisition and integration costs $ 11   to $ 21     $ 7   to $ 17  
Depreciation, amortization and accretion $ 1,576   to $ 1,611     $ 1,503   to $ 1,598  
Amortization of prepaid lease purchase price adjustments $ 19   to $ 21     $ 18   to $ 20  
Interest expense and amortization of deferred financing costs(a) $ 674   to $ 704     $ 691   to $ 736  
(Gains) losses on retirement of long-term obligations $ 2   to $ 2     $ 0   to $ 0  
Interest income $ (8 ) to $ (4 )   $ (7 ) to $ (3 )
Other (income) expense $ 2   to $ 4     $ (1 ) to $ 1  
(Benefit) provision for income taxes $ 16   to $ 24     $ 16   to $ 24  
Stock-based compensation expense $ 112   to $ 120     $ 126   to $ 130  
Adjusted EBITDA(b)(c) $ 3,393   to $ 3,423     $ 3,569   to $ 3,614  
                               

(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 Nine Months Ended   For the Twelve Months Ended
(in millions) September 30, 2019   September 30, 2018   September 30, 2019   September 30, 2018   December 31, 2018
Net income (loss) $ 272     $ 164     $ 729     $ 458     $ 671  
Real estate related depreciation, amortization and accretion 375     371     1,134     1,097     1,472  
Asset write-down charges 2     8     13     18     26  
Dividends on preferred stock (28 )   (28 )   (85 )   (85 )   (113 )
FFO(a)(b)(c)(d) $ 622     $ 515     $ 1,789     $ 1,487     $ 2,055  
Weighted-average common shares outstanding—diluted(e) 418     416     418     414     415  
FFO per share(a)(b)(c)(d)(e) $ 1.49     $ 1.24     $ 4.28     $ 3.59     $ 4.95  
                   
FFO (from above) $ 622     $ 515     $ 1,789     $ 1,487     $ 2,055  
Adjustments to increase (decrease) FFO:                  
Straight-lined revenue (22 )   (17 )   (62 )   (53 )   (72 )
Straight-lined expense 24     23     70     69     90  
Stock-based compensation expense 29     32     90     84     108  
Non-cash portion of tax provision 1     2     2     (1 )   2  
Non-real estate related depreciation, amortization and accretion 14     14     42     41     56  
Amortization of non-cash interest expense     2     1     5     7  
Other (income) expense 5     (1 )   6         (1 )
(Gains) losses on retirement of long-term obligations     32     2     106     106  
Acquisition and integration costs 4     4     10     18     27  
Sustaining capital expenditures (29 )   (27 )   (80 )   (75 )   (105 )
AFFO(a)(b)(c)(d) $ 646     $ 579     $ 1,871     $ 1,683     $ 2,274  
Weighted-average common shares outstanding—diluted(e) 418     416     418     414     415  
AFFO per share(a)(b)(c)(d)(e) $ 1.55     $ 1.39     $ 4.48     $ 4.06     $ 5.48  
                                       

(a) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of FFO, including per share amounts, and AFFO, including per share amounts.
(b) FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid.
(c) Attributable to CCIC common stockholders.
(d) The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(e) For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of preferred stock in the share count.

Reconciliation of Current Outlook for FFO and AFFO:

  Full Year 2019 Full Year 2020
(in millions) Outlook Outlook
Net income (loss) $ 896   to $ 956   $ 1,088   to $ 1,168  
Real estate related depreciation, amortization and accretion $ 1,528   to $ 1,548   $ 1,454   to $ 1,534  
Asset write-down charges $ 23   to $ 33   $ 20   to $ 30  
Dividends on preferred stock $ (113 ) to $ (113 ) $ (85 ) to $ (85 )
FFO(a)(b)(c)(d) $ 2,363   to $ 2,393   $ 2,539   to $ 2,584  
Weighted-average common shares outstanding—diluted(e)   418     424  
FFO per share(a)(b)(c)(d)(e) $ 5.66   to $ 5.73   $ 5.99   to $ 6.09  
             
FFO (from above) $ 2,363   to $ 2,393   $ 2,539   to $ 2,584  
Adjustments to increase (decrease) FFO:            
Straight-lined revenue $ (74 ) to $ (54 ) $ (53 ) to $ (33 )
Straight-lined expense $ 81   to $ 101   $ 70   to $ 90  
Stock-based compensation expense $ 112   to $ 120   $ 126   to $ 130  
Non-cash portion of tax provision $ (6 ) to $ 9   $ (6 ) to $ 9  
Non-real estate related depreciation, amortization and accretion $ 48   to $ 63   $ 49   to $ 64  
Amortization of non-cash interest expense $ (5 ) to $ 5   $ (4 ) to $ 6  
Other (income) expense $ 2   to $ 4   $ (1 ) to $ 1  
(Gains) losses on retirement of long-term obligations $ 2   to $ 2   $ 0   to $ 0  
Acquisition and integration costs $ 11   to $ 21   $ 7   to $ 17  
Sustaining capital expenditures $ (136 ) to $ (106 ) $ (123 ) to $ (103 )
AFFO(a)(b)(c)(d) $ 2,464   to $ 2,494   $ 2,662   to $ 2,707  
Weighted-average common shares outstanding—diluted(e)   418     424  
AFFO per share(a)(b)(c)(d)(e) $ 5.90   to $ 5.97   $ 6.28   to $ 6.38  
                             

(a) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of FFO, including per share amounts, and AFFO, including per share amounts.
(b) FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid.
(c) Attributable to CCIC common stockholders.
(d) The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(e) The assumption for diluted weighted-average common shares outstanding for full year 2019 Outlook is based on the diluted common shares outstanding as of September 30, 2019, and does not include any assumed conversion of preferred stock in the share count.  The full year 2020 Outlook is inclusive of the assumed conversion of preferred stock in August 2020, which we expect to result in (1) an increase in the diluted weighted-average common shares outstanding by approximately 6 million shares and (2) a reduction in the amount of annual preferred stock dividends paid by approximately $28 million when compared to the full year 2019 Outlook.

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

  Previously Issued
  Full Year 2019
(in millions) Outlook
Net income (loss) $ 896   to $ 956  
Adjustments to increase (decrease) net income (loss):      
Asset write-down charges $ 23   to $ 33  
Acquisition and integration costs $ 11   to $ 21  
Depreciation, amortization and accretion $ 1,576   to $ 1,611  
Amortization of prepaid lease purchase price adjustments $ 19   to $ 21  
Interest expense and amortization of deferred financing costs $ 674   to $ 704  
(Gains) losses on retirement of long-term obligations $ 2   to $ 2  
Interest income $ (8 ) to $ (4 )
Other (income) expense $ 2   to $ 4  
(Benefit) provision for income taxes $ 16   to $ 24  
Stock-based compensation expense $ 112   to $ 120  
Adjusted EBITDA(a)(b) $ 3,393   to $ 3,423  
               

(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
  Full Year 2019
(in millions) Outlook
Net income (loss) $ 896   to $ 956  
Real estate related depreciation, amortization and accretion $ 1,528   to $ 1,548  
Asset write-down charges $ 23   to $ 33  
Dividends on preferred stock $ (113 ) to $ (113 )
FFO(a)(b)(c)(d) $ 2,363   to $ 2,393  
Weighted-average common shares outstanding—diluted(e)   418  
FFO per share(a)(b)(c)(d)(e) $ 5.66   to $ 5.73  
       
FFO (from above) $ 2,363   to $ 2,393  
Adjustments to increase (decrease) FFO:      
Straight-lined revenue $ (74 ) to $ (54 )
Straight-lined expense $ 81   to $ 101  
Stock-based compensation expense $ 112   to $ 120  
Non-cash portion of tax provision $ (6 ) to $ 9  
Non-real estate related depreciation, amortization and accretion $ 48   to $ 63  
Amortization of non-cash interest expense $ (5 ) to $ 5  
Other (income) expense $ 2   to $ 4  
(Gains) losses on retirement of long-term obligations $ 2   to $ 2  
Acquisition and integration costs $ 11   to $ 21  
Maintenance capital expenditures $ (90 ) to $ (75 )
Corporate capital expenditures $ (46 ) to $ (31 )
AFFO(a)(b)(c)(d) $ 2,464   to $ 2,494  
Weighted-average common shares outstanding—diluted(e)   418  
AFFO per share(a)(b)(c)(d)(e) $ 5.90   to $ 5.97  
               

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

The components of changes in site rental revenues for the quarters ended September 30, 2019 and 2018 are as follows:

null
  Three Months Ended
 September 30,
(dollars in millions) 2019   2018
Components of changes in site rental revenues(a):      
Prior year site rental revenues exclusive of straight-lined revenues associated with fixed escalators(b)(c) $ 1,168     $ 896  
       
New leasing activity(b)(c) 92     54  
Escalators 22     21  
Non-renewals (44 )   (23 )
Organic Contribution to Site Rental Revenues(d) 70     52  
Straight-lined revenues associated with fixed escalators 22     17  
Acquisitions(e)     219  
Other      
Total GAAP site rental revenues $ 1,260     $