Crown Castle Reports Fourth Quarter 2023 and Full Year 2023 Results, Maintains Outlook for Full Year 2024

Published

HOUSTON, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Crown Castle Inc. (NYSE: CCI) ("Crown Castle") today reported results for the fourth quarter and full year ended December 31, 2023 and maintained its full year 2024 outlook, as reflected in the table below.

 Full Year 2024 Full Year 2023
(dollars in millions, except per share amounts)Current OutlookMidpoint(a)MidpointGrowth RateCompared toFull Year 2023Actual ActualActual GrowthRate Comparedto Full Year2022 Actual
 
Site rental revenues$6,370(2)%  $6,5324% 
Net income (loss)$1,253(17)%  $1,502(10)% 
Net income (loss) per share—diluted$2.88(17)%  $3.46(10)% 
Adjusted EBITDA(b)$4,163(6)%  $4,4152% 
AFFO(b)$3,005(8)%  $3,2772% 
AFFO per share(b)$6.91(8)%  $7.552% 

(a)   As issued on January 24, 2024 and unchanged from the previous full year 2024 Outlook issued on October 18, 2023.(b)  See "Non-GAAP Measures and Other Information" for further information and reconciliation of non-GAAP financial measures to net income (loss), including on a per share basis.

"Crown Castle delivered 2023 results in line with our expectations, including site rental billings, Adjusted EBITDA, and AFFO. We generated full-year tower organic revenue growth of 5%, achieved 8,000 new small cell nodes for the year, with 2,000 additional nodes completed that are expected to begin billing in first quarter 2024, and returned to year-over-year fiber solutions revenue growth of approximately 3% in the fourth quarter," said Tony Melone, Crown Castle's Interim Chief Executive Officer ("CEO"). "Looking forward, my focus is on delivering on our 2024 Outlook and continuing to serve our customers with excellence, while at the same time supporting the ongoing strategic review of our Fiber business and providing stability through our CEO transition period."

RESULTS FOR THE YEARThe table below sets forth select financial results for the year ended December 31, 2023 and December 31, 2022.

 ActualPrevious2023OutlookMidpoint(b)ActualComparedto PreviousOutlookMidpoint
(dollars in millions, except per share amounts) 2023 2022 Change% Change
Site rental revenues$6,532$6,289 $243 4% $6,511$21 
Net income (loss)$1,502$1,675 $(173) (10)% $1,469$33 
Net income (loss) per share—diluted$3.46$3.86 $(0.40) (10)% $3.38$0.08 
Adjusted EBITDA(a)$4,415$4,340 $75 2% $4,422$(7) 
AFFO(a)$3,277$3,200 $77 2% $3,279$(2) 
AFFO per share(a)$7.55$7.38 $0.17 2% $7.54$0.01 

(a)  See "Non-GAAP Measures and Other Information" for further information and reconciliation of non-GAAP financial measures to net income (loss), including on a per share basis.(b)   As issued October 18, 2023.

HIGHLIGHTS FROM THE YEAR

  • Site rental revenues. Site rental revenues grew 4%, or $243 million, from full year 2022 to full year 2023, inclusive of approximately $361 million in Organic Contribution to Site Rental Billings, a $136 million decrease in straight-lined revenues, and a $15 million increase in amortization of prepaid rent. The $361 million in Organic Contribution to Site Rental Billings, which includes $170 million net contribution from Sprint Cancellations, represents 6.8% growth, or 4.0% when adjusted for the impact of Sprint Cancellations.
  • Net income. Net income for the full year 2023 was $1.5 billion compared to $1.7 billion for the full year 2022, and included $85 million of charges incurred during the year related to our restructuring plan announced in July 2023.
  • Adjusted EBITDA. Full year 2023 Adjusted EBITDA was $4.4 billion compared to $4.3 billion for the full year 2022, representing 2% growth.
  • AFFO and AFFO per share. Full year 2023 AFFO was $3.3 billion, or $7.55 per share, representing growth from the full year 2022 of 2%.
  • Capital expenditures. Capital expenditures during the year were $1.4 billion, comprised of $1.3 billion of discretionary capital expenditures and $83 million of sustaining capital expenditures. Discretionary capital expenditures included approximately $1.1 billion attributable to Fiber and $186 million attributable to Towers.
  • Common stock dividend. During the year, Crown Castle paid common stock dividends of approximately $2.7 billion in the aggregate, or $6.26 per common share, an increase of 4.7% on a per share basis compared to the same period a year ago.
  • Financing activity. In December 2023, Crown Castle issued $1.5 billion in aggregate principal amount of senior unsecured notes in a combination of 5-year and 10-year maturities with a weighted average maturity and coupon of approximately 8 years and 5.7%, respectively. Net proceeds from the senior notes offering were used to repay outstanding indebtedness under its commercial paper program and pay related fees and expenses.

"The growth delivered in 2023 across towers, small cells, and fiber solutions demonstrates our customers' continued demand for our assets, and we are well positioned to execute on our expectations for 2024," stated Dan Schlanger, Crown Castle's Chief Financial Officer. "In December, we issued $1.5 billion of long-term fixed rate debt at a weighted average interest rate of 5.7%, allowing us to end the year with more than 90% fixed rate debt, a weighted average debt maturity of 8 years, limited maturities through 2024, and more than $6 billion of available liquidity under our revolving credit facility."

FIBER STRATEGIC REVIEW AND CEO SEARCHThe Fiber Review Committee of Crown Castle's Board of Directors ("Board") is progressing the strategic and operating review of the fiber business with the goal of enhancing stockholder value. Concurrently, the Board's CEO Search Committee is conducting a thorough search to identify Crown Castle's next CEO. The Company will provide updates as developments warrant.

MANAGEMENT CHANGESCrown Castle announced today that Dan Schlanger will remain in his role as Executive Vice President and Chief Financial Officer. The Company previously announced Mr. Schlanger would depart on March 31, 2024.

"The Board and I, together with Dan, agreed it would be best for him to continue serving as Crown Castle’s CFO," said Mr. Melone. "Dan has been a valuable member of our executive leadership team and has made significant contributions over the past seven years. His expertise and leadership are important as we position the Company for success in 2024 and beyond, in addition to providing continuity during our CEO search process. We are thankful for Dan’s ongoing service and commitment to Crown Castle."

Crown Castle also announced that Mike Kavanagh, currently its Executive Vice President and Chief Commercial Officer, has been appointed Executive Vice President and Chief Operating Officer ("COO") for Towers, and Chris Levendos will serve as Executive Vice President and COO for Fiber, the position he held for several years. Operations and sales responsibilities will be consolidated under each COO by respective segment.

"I believe this leadership structure provides an enhanced focus on generating the highest returns in each business segment and will best enable us to maximize value across our portfolio. I am confident that Mike and Chris will help us execute our strategy and drive stockholder value," stated Mr. Melone.

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 SEC.

The following table sets forth Crown Castle's current full year 2024 Outlook, which remains unchanged from the previous full year 2024 Outlook.

(in millions, except per share amounts)Full Year 2024
Site rental billings(a)$5,740to$5,780
Amortization of prepaid rent$410to$435
Straight-lined revenues$175to$200
Site rental revenues$6,347to$6,392
Site rental costs of operations(b)$1,686to$1,731
Services and other gross margin$65to$95
Net income (loss)$1,213to$1,293
Net income (loss) per share—diluted$2.79to$2.97
Adjusted EBITDA(c)$4,138to$4,188
Depreciation, amortization and accretion$1,680to$1,775
Interest expense and amortization of deferred financing costs, net(d)$933to$978
FFO(c)$2,951to$2,996
AFFO(c)$2,980to$3,030
AFFO per share(c)$6.85to$6.97

(a)   See "Non-GAAP Measures and Other Information" for our definition of site rental billings.(b)   Exclusive of depreciation, amortization and accretion.(c)  See "Non-GAAP Measures and Other Information" for further information and reconciliation of non-GAAP financial measures to net income (loss), including on a per share basis.(d)   See "Non-GAAP Measures and Other Information" for the reconciliation of "Outlook for Components of Interest Expense."

  • Full year 2023 site rental revenues were $21 million above the 2023 Outlook at the midpoint, inclusive of approximately $5 million of higher-than-expected Towers revenue in the fourth quarter not expected to recur in 2024. Our 2024 Outlook remains unchanged and year-over-year core leasing activity is expected to be within the growth ranges below.
  • The chart below reconciles the components contributing to expected 2024 growth in site rental revenues. Full year consolidated site rental billings growth, excluding the impact of Sprint Cancellations, is expected to be 5%, inclusive of 4.5% from towers, 13% from small cells, and 3% from fiber solutions.2024 Outlook for Organic Contribution to Site Rental Billings, Change in Site Rental Revenues ($ in millions)
  • The chart below reconciles the components contributing to the year over year change to 2024 AFFO.2024 Outlook for Change in AFFO ($ in millions)
  • The full year 2024 Outlook for discretionary capital expenditures and prepaid rent additions remains unchanged. Expected discretionary capital expenditures are $1.5 billion to $1.6 billion, including approximately $1.4 billion in the Fiber segment and $180 million in the Towers segment, and prepaid rent additions are expected to be approximately $430 million in 2024, including $350 million from Fiber and $80 million from Towers.

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

CONFERENCE CALL DETAILS Crown Castle has scheduled a conference call for Thursday, January 25, 2024, at 10:30 a.m. Eastern time to discuss its full year 2023 results. A listen only live audio webcast of the conference call, along with supplemental materials for the call, can be accessed on the Crown Castle website at https://investor.crowncastle.com. Participants may join the conference call by dialing 833-816-1115 (Toll Free) or 412-317-0694 (International) at least 30 minutes prior to the start time. All dial-in participants should ask to join the Crown Castle call.

A replay of the webcast will be available on the Investor page of Crown Castle's website until end of day, Saturday, January 25, 2025.

ABOUT CROWN CASTLECrown Castle owns, operates and leases more than 40,000 cell towers and approximately 90,000 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 Measures and Other Information

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, Organic Contribution to Site Rental Billings, including as Adjusted for Impact of Sprint Cancellations, and Net Debt, 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").

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 site rental revenues and 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 (loss) 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 (in periods where applicable)) and (2) sustaining capital expenditures, and excludes the impact of our (1) asset base (primarily depreciation, amortization and accretion) and (2) 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 revenues or expenses are 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 (loss) computed in accordance with GAAP as a measure of our performance and should not be considered as an alternative to cash flow 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 real estate 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 (loss) 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 Billings 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 Organic Contribution to Site Rental Billings to assess year-over-year growth rates for our rental activities, to evaluate current performance, to capture trends in rental rates, core leasing activities and tenant non-renewals in our core business, as well as to forecast future results. Separately, we are also disclosing Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations, which is outside of ordinary course, to provide further insight into our results of operations and underlying trends. Management believes that identifying the impact for Sprint Cancellations provides increased transparency and comparability across periods. Organic Contribution to Site Rental Billings (including as Adjusted for Impact of Sprint Cancellations) 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.
  • Net Debt is useful to investors or other interested parties in evaluating our overall debt position and future debt capacity. Management uses Net Debt in assessing our leverage. Net Debt is not meant as an alternative measure of debt and should be considered only as a supplement in understanding and assessing our leverage.

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, net, (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, net (income) loss from discontinued operations, (gain) loss on sale of discontinued operations, cumulative effect of a change in accounting principle and stock-based compensation expense, net.

AFFO. We define AFFO as FFO before straight-lined revenues, straight-lined expenses, stock-based compensation expense, net, 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, impairment of available-for-sale securities, acquisition and integration costs, restructuring charges (credits), net (income) loss from discontinued operations, (gain) loss on sale of discontinued operations, cumulative effect of a change in accounting principle and adjustments for noncontrolling interests, less sustaining capital expenditures.

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

FFO. We define FFO as net income (loss) plus real estate related depreciation, amortization and accretion and asset write-down charges, less noncontrolling interest and cash paid for preferred stock dividends (in periods where applicable), and is a measure of funds from operations attributable to common stockholders.

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

Organic Contribution to Site Rental Billings. We define Organic Contribution to Site Rental Billings as the sum of the change in site rental revenues related to core leasing activity, escalators and payments for Sprint Cancellations, less non-renewals of tenant contracts and non-renewals associated with Sprint Cancellations. Additionally, Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations reflects Organic Contribution to Site Rental Billings less payments for Sprint Cancellations, plus non-renewals associated with Sprint Cancellations.

Net Debt. We define Net Debt as (1) debt and other long-term obligations and (2) current maturities of debt and other obligations, excluding unamortized adjustments, net; less cash, cash equivalents and restricted cash.

Segment Measures

Segment site rental gross margin. We define segment site rental gross margin as segment site rental revenues less segment site rental costs of operations, excluding stock-based compensation expense, net and amortization of prepaid lease purchase price adjustments recorded in consolidated site rental costs 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 costs of operations, excluding stock-based compensation expense, net recorded in consolidated services and other costs of operations.

Segment operating profit. We define segment operating profit as segment site rental gross margin plus segment services and other gross margin, less segment selling, general and administrative expenses.

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 Definitions

Site rental billings. We define site rental billings as site rental revenues exclusive of the impacts from (1) straight-lined revenues, (2) amortization of prepaid rent in accordance with GAAP and (3) contribution from recent acquisitions until the one-year anniversary of such acquisitions.

Core leasing activity. We define core leasing activity as site rental revenues growth from tenant additions across our entire portfolio and renewals or extensions of tenant contracts, exclusive of (1) the impacts from both straight-lined revenues and amortization of prepaid rent in accordance with GAAP and (2) payments for Sprint Cancellations, where applicable.

Non-renewals. We define non-renewals of tenant contracts as the reduction in site rental revenues as a result of tenant churn, terminations and, in limited circumstances, reductions of existing lease rates, exclusive of non-renewals associated with Sprint Cancellations, where applicable.

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 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 relates 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.

Sustaining capital expenditures. We define sustaining capital expenditures as those capital expenditures not otherwise categorized as discretionary 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.

Sprint Cancellations. We define Sprint Cancellations as lease cancellations related to the previously disclosed T-Mobile US, Inc. and Sprint network consolidation as described in our press release dated April 19, 2023.

Reconciliation of Historical Adjusted EBITDA:

 For the Three Months Ended For the Twelve Months Ended
(in millions; totals may not sum due to rounding)December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net income (loss)$361  $413  $1,502  $1,675 
Adjustments to increase (decrease) net income (loss):       
Asset write-down charges 3   8   33   34 
Acquisition and integration costs    1   1   2 
Depreciation, amortization and accretion 439   431   1,754   1,707 
Restructuring charges 13      85    
Amortization of prepaid lease purchase price adjustments 4   4   16   16 
Interest expense and amortization of deferred financing costs, net(a) 223   192   850   699 
(Gains) losses on retirement of long-term obligations          28 
Interest income (5)  (2)  (15)  (3)
Other (income) expense 2   5   6   10 
(Benefit) provision for income taxes 5   2   26   16 
Stock-based compensation expense, net 31   36   157   156 
Adjusted EBITDA(b)(c)$1,076  $1,090  $4,415  $4,340 
                

Reconciliation of Current Outlook for Adjusted EBITDA:

 Full Year 2024
(in millions; totals may not sum due to rounding)Outlook(e)
Net income (loss)$1,213 to $1,293 
Adjustments to increase (decrease) net income (loss):    
Asset write-down charges$42 to $52 
Acquisition and integration costs$0 to $6 
Depreciation, amortization and accretion$1,680 to $1,775 
Restructuring charges$0 to $15 
Amortization of prepaid lease purchase price adjustments$15 to $17 
Interest expense and amortization of deferred financing costs, net(d)$933 to $978 
(Gains) losses on retirement of long-term obligations$0 to $0 
Interest income$(12) to $(11) 
Other (income) expense$0 to $9 
(Benefit) provision for income taxes$20 to $28 
Stock-based compensation expense, net$142 to $146 
Adjusted EBITDA(b)(c)$4,138 to $4,188 
       

(a)   See the reconciliation of "Components of Interest Expense" for a discussion of non-cash interest expense.(b)   See discussion and our definition of Adjusted EBITDA in this "Non-GAAP Measures and Other Information." (c)   The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.(d)   See the reconciliation of "Outlook for Components of Interest Expense" for a discussion of non-cash interest expense. (e)   As issued on January 24, 2024.

Reconciliation of Historical FFO and AFFO:

 For the Three Months Ended For the Twelve Months Ended
(in millions; totals may not sum due to rounding)December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net income (loss)$361  $413  $1,502  $1,675 
Real estate related depreciation, amortization and accretion 426   417   1,692   1,653 
Asset write-down charges 3   8   33   34 
FFO(a)(b)$790  $838  $3,227  $3,362 
Weighted-average common shares outstanding—diluted 434   434   434   434 
        
FFO (from above)$790  $838  $3,227  $3,362 
Adjustments to increase (decrease) FFO:       
Straight-lined revenues (51)  (85)  (274)  (410)
Straight-lined expenses 17   18   73   73 
Stock-based compensation expense, net 31   36   157   156 
Non-cash portion of tax provision    2   8   6 
Non-real estate related depreciation, amortization and accretion 13   14   62   54 
Amortization of non-cash interest expense 3   3   14   14 
Other (income) expense 2   5   6   10 
(Gains) losses on retirement of long-term obligations          28 
Acquisition and integration costs    1   1   2 
Restructuring charges 13      85    
Sustaining capital expenditures (28)  (30)  (83)  (95)
AFFO(a)(b)$790  $802  $3,277  $3,200 
Weighted-average common shares outstanding—diluted 434   434   434   434 
                

(a)   See discussion and our definitions of FFO and AFFO in this "Non-GAAP Measures and Other Information."(b)   The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.

Reconciliation of Historical FFO and AFFO per share:

 For the Three Months Ended For the Twelve Months Ended
(in millions, except per share amounts; totals may not sum due to rounding)December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net income (loss)$0.83  $0.95  $3.46  $3.86 
Real estate related depreciation, amortization and accretion 0.98   0.96   3.90   3.81 
Asset write-down charges 0.01   0.02   0.08   0.08 
FFO(a)(b)$1.82  $1.93  $7.43  $7.75 
Weighted-average common shares outstanding—diluted 434   434   434   434 
        
FFO (from above)$1.82  $1.93  $7.43  $7.75 
Adjustments to increase (decrease) FFO:       
Straight-lined revenues (0.12)  (0.20)  (0.63)  (0.94)
Straight-lined expenses 0.04   0.04   0.17   0.17 
Stock-based compensation expense, net 0.07   0.08   0.36   0.36 
Non-cash portion of tax provision       0.02   0.01 
Non-real estate related depreciation, amortization and accretion 0.03   0.03   0.14   0.12 
Amortization of non-cash interest expense 0.01   0.01   0.03   0.03 
Other (income) expense    0.01   0.01   0.02 
(Gains) losses on retirement of long-term obligations          0.06 
Acquisition and integration costs          0.01 
Restructuring charges 0.03      0.20    
Sustaining capital expenditures (0.06)  (0.07)  (0.19)  (0.22)
AFFO(a)(b)$1.82  $1.85  $7.55  $7.38 
Weighted-average common shares outstanding—diluted 434   434   434   434 
                

(a)   See discussion and our definitions of FFO and AFFO, including per share amounts, in this "Non-GAAP Measures and Other Information." (b)   The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.

Reconciliation of Current Outlook for FFO and AFFO:

 Full Year 2024
(in millions; totals may not sum due to rounding)Outlook(a)
Net income (loss)$1,213 to $1,293 
Real estate related depreciation, amortization and accretion$1,634 to $1,714 
Asset write-down charges$42 to $52 
FFO(b)(c)$2,951 to $2,996 
Weighted-average common shares outstanding—diluted435 
     
FFO (from above)$2,951 to $2,996 
Adjustments to increase (decrease) FFO:    
Straight-lined revenues$(197) to $(177) 
Straight-lined expenses$55 to $75 
Stock-based compensation expense, net$142 to $146 
Non-cash portion of tax provision$2 to $17 
Non-real estate related depreciation, amortization and accretion$46 to $61 
Amortization of non-cash interest expense$9 to $19 
Other (income) expense$0 to $9 
(Gains) losses on retirement of long-term obligations$0 to $0 
Acquisition and integration costs$0 to $6 
Restructuring charges$0 to $15 
Sustaining capital expenditures$(85) to $(65) 
AFFO(b)(c)$2,980 to $3,030 
Weighted-average common shares outstanding—diluted435 
  

Reconciliation of Current Outlook for FFO and AFFO per share:

 Full Year 2024
(in millions, except per share amounts; totals may not sum due to rounding)Outlook per share(a)
Net income (loss)$2.79 to $2.97 
Real estate related depreciation, amortization and accretion$3.76 to $3.94 
Asset write-down charges$0.10 to $0.12 
FFO(b)(c)$6.78 to $6.89 
Weighted-average common shares outstanding—diluted435 
     
FFO (from above)$6.78 to $6.89 
Adjustments to increase (decrease) FFO:    
Straight-lined revenues$(0.45) to $(0.41) 
Straight-lined expenses$0.13 to $0.17 
Stock-based compensation expense, net$0.33 to $0.34 
Non-cash portion of tax provision$0.00 to $0.04 
Non-real estate related depreciation, amortization and accretion$0.11 to $0.14 
Amortization of non-cash interest expense$0.02 to $0.04 
Other (income) expense$0.00 to $0.02 
(Gains) losses on retirement of long-term obligations$0.00 to $0.00 
Acquisition and integration costs$0.00 to $0.01 
Restructuring charges$0.00 to $0.03 
Sustaining capital expenditures$(0.20) to $(0.15) 
AFFO(b)(c)$6.85 to $6.97 
Weighted-average common shares outstanding—diluted435 
  

(a)   As issued on January 24, 2024.(b)   See discussion and our definitions of FFO and AFFO, including per share amounts, in this "Non-GAAP Measures and Other Information."(c)   The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.

Components of Changes in Site Rental Revenues for the Quarters Ended December 31, 2023 and 2022:

 Three Months Ended December 31,
(dollars in millions; totals may not sum due to rounding) 2023   2022 
Components of changes in site rental revenues:   
Prior year site rental billings(a)$1,348  $1,290 
    
Core leasing activity(a) 79   73 
Escalators 24   27 
Non-renewals(a) (36)  (43)
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(a) 67   57 
Payments for Sprint Cancellations(a)(b) 10    
Non-renewals associated with Sprint Cancellations(a)(b) (7)   
Organic Contribution to Site Rental Billings(a) 70   57 
Straight-lined revenues 51   85 
Amortization of prepaid rent 134   145 
Acquisitions(c) 1   1 
Other     
Total site rental revenues$1,603  $1,578 
    
Year-over-year changes in revenues:   
Site rental revenues as a percentage of prior year site rental revenues 1.6%  7.1%
Changes in revenues as a percentage of prior year site rental billings:   
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(a) 4.9%  4.3%
Organic Contribution to Site Rental Billings(a) 5.2%  4.3%
        

(a)   See our definitions of site rental billings, core leasing activity, non-renewals, Sprint Cancellations, Organic Contribution to Site Rental Billings and Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations in this "Non-GAAP Measures and Other Information."(b)   In the fourth quarter 2023, we received $2 million and $8 million of payments for Sprint Cancellations that related to small cells and fiber solutions, respectively, and $5 million and $2 million of non-renewals associated with Sprint Cancellations that related to small cells and fiber solutions, respectively.(c)   Represents the contribution from recent acquisitions. The financial impact of recent acquisitions is excluded from Organic Contribution to Site Rental Billings, including as Adjusted for Impact of Sprint Cancellations, until the one-year anniversary of such acquisitions.

Components of Changes in Site Rental Revenues for Full Year 2023 Actual and Current Outlook for Full Year 2024:

(dollars in millions; totals may not sum due to rounding)Full Year 2023 Full Year 2024 Outlook(a)
Components of changes in site rental revenues:   
Prior year site rental billings excluding payments for Sprint Cancellations(b)$5,310  $5,505 
Prior year payments for Sprint Cancellations(b)   $170 
Prior year site rental billings(b) 5,310  $5,675 
    
Core leasing activity(b) 275  $305 to $335 
Escalators 96  $95 to $105 
Non-renewals(b) (158)  $(165) to $(145) 
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(b) 212  $245 to $285 
Payments for Sprint Cancellations(b)(c) 170  $(170) to $(160) 
Non-renewals associated with Sprint Cancellations(b)(c) (21)  $(10) to $(10) 
Organic Contribution to Site Rental Billings(b) 361  $70 to $110 
Straight-lined revenues 274  $175 to $200 
Amortization of prepaid rent 584  $410 to $435 
Acquisitions(d) 4         
Other          
Total site rental revenues$6,532   $6,347 to  $6,392 
    
Year-over-year changes in revenues:(e)   
Site rental revenues as a percentage of prior year site rental revenues 3.9%  (2.5)% 
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(b) 4.0%  4.8% 
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(b) 6.8%  1.6% 
        

(a)   As issued on January 24, 2024 and unchanged from the previous full year 2024 Outlook issued on October 18, 2023.(b)  See our definitions of site rental billings, core leasing activity, non-renewals, Sprint Cancellations, Organic Contribution to Site Rental Billings, and Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations in this "Non-GAAP Measures and Other Information."(c)   In 2023, we received $104 million and $66 million of payments for Sprint Cancellations that related to small cells and fiber solutions, respectively, and $14 million and $7 million of non-renewals associated with Sprint Cancellations that related to small cells and fiber solutions, respectively. These payments are non-recurring and therefore reduce full year 2024 Organic Contribution to Site Rental Billings by the same amount. (d)  Represents the contribution from recent acquisitions. The financial impact of recent acquisitions is excluded from Organic Contribution to Site Rental Billings, including as Adjusted for Impact of Sprint Cancellations, until the one-year anniversary of such acquisitions.(e)   Calculated based on midpoint of respective full year Outlook, where applicable.

Components of Capital Expenditures:(a)

 For the Three Months Ended
 December 31, 2023 December 31, 2022
(in millions)TowersFiberOtherTotal TowersFiberOtherTotal
Discretionary capital expenditures:         
Communications infrastructure improvements and other capital projects$21 $288 $7 $316 $29 $307 $7 $343
Purchases of land interests 13      13  16      16
Sustaining capital expenditures   15  13  28  3  6  21  30
Total capital expenditures$34 $303 $20 $357 $48 $313 $28 $389
          
 For the Twelve Months Ended
 December 31, 2023 December 31, 2022
(in millions)TowersFiberOtherTotal TowersFiberOtherTotal
Discretionary capital expenditures:         
Communications infrastructure improvements and other capital projects$122 $1,131 $24 $1,277 $121 $1,017 $24 $1,162
Purchases of land interests 64      64  53      53
Sustaining capital expenditures 8  44  31  83  11  41  43  95
Total capital expenditures$194 $1,175 $55 $1,424 $185 $1,058 $67 $1,310
                        

Outlook for Discretionary Capital Expenditures Less Prepaid Rent Additions:(a)(d)

(in millions)Full Year 2024 Outlook(b)
Discretionary capital expenditures$1,530to$1,630
Less: Prepaid rent additions(c)~$430
Discretionary capital expenditures less prepaid rent additions $1,100to$1,200
     

Components of Interest Expense:

 For the Three Months Ended
(in millions)December 31, 2023 December 31, 2022
Interest expense on debt obligations$220  $189 
Amortization of deferred financing costs and adjustments on long-term debt 7   6 
Capitalized interest (4)  (3)
Interest expense and amortization of deferred financing costs, net$223  $192 
        

Outlook for Components of Interest Expense:

(in millions)Full Year 2024 Outlook(b)
Interest expense on debt obligations$922to$962 
Amortization of deferred financing costs and adjustments on long-term debt$20to$30 
Capitalized interest$(17)to$(7) 
Interest expense and amortization of deferred financing costs, net$933to$978 
       

(a)   See our definitions of discretionary capital expenditures and sustaining capital expenditures in this "Non-GAAP Measures and Other Information."(b)   As issued on January 24, 2024 and unchanged from the previous full year 2024 Outlook issued on October 18, 2023.(c)   Reflects up-front consideration from long-term tenant contracts (commonly referred to as prepaid rent) that are amortized and recognized as revenue over the associated estimated lease term in accordance with GAAP.(d)   Outlook reflects discretionary capital expenditures, exclusive of sustaining capital expenditures. See "Non-GAAP Measures and Other Information" for our definitions of discretionary capital expenditures and sustaining capital expenditures.

Debt Balances and Maturity Dates as of December 31, 2023:

(in millions)Face Value(a) Final Maturity
Cash, cash equivalents and restricted cash$281  
Senior Secured Notes, Series 2009-1, Class A-2(b) 40 Aug. 2029
Senior Secured Tower Revenue Notes, Series 2015-2(c) 700 May 2045
Senior Secured Tower Revenue Notes, Series 2018-2(c) 750 July 2048
Finance leases and other obligations 271 Various
Total secured debt$1,761  
2016 Revolver(d) 670 July 2027
2016 Term Loan A(e) 1,162 July 2027
Commercial Paper Notes(f)  N/A
3.200% Senior Notes 750 Sept. 2024
1.350% Senior Notes 500 July 2025
4.450% Senior Notes 900 Feb. 2026
3.700% Senior Notes 750 June 2026
1.050% Senior Notes 1,000 July 2026
2.900% Senior Notes 750 Mar. 2027
4.000% Senior Notes 500 Mar. 2027
3.650% Senior Notes 1,000 Sept. 2027
5.000% Senior Notes 1,000 Jan. 2028
3.800% Senior Notes 1,000 Feb. 2028
4.800% Senior Notes 600 Sept. 2028
4.300% Senior Notes 600 Feb. 2029
5.600% Senior Notes 750 June 2029
3.100% Senior Notes 550 Nov. 2029
3.300% Senior Notes 750 July 2030
2.250% Senior Notes 1,100 Jan. 2031
2.100% Senior Notes 1,000 Apr. 2031
2.500% Senior Notes 750 July 2031
5.100% Senior Notes 750 May 2033
5.800% Senior Notes 750 Mar. 2034
2.900% Senior Notes 1,250 Apr. 2041
4.750% Senior Notes 350 May 2047
5.200% Senior Notes 400 Feb. 2049
4.000% Senior Notes 350 Nov. 2049
4.150% Senior Notes 500 July 2050
3.250% Senior Notes 900 Jan. 2051
Total unsecured debt$21,332  
Net Debt(g)$22,812  
     

(a)   Net of required principal amortizations.(b)   The Senior Secured Notes, 2009-1, Class A-2 principal amortizes over a period ending in August 2029.(c)   If the respective series of Tower Revenue Notes are not paid in full on or prior to an applicable anticipated repayment date, then the Excess Cash Flow (as defined in the indenture) of the issuers of such notes will be used to repay principal of the applicable series, and additional interest (of an additional approximately 5% per annum) will accrue on the respective series. The Senior Secured Tower Revenue Notes, 2015-2 and 2018-2 have anticipated repayment dates in 2025 and 2028, respectively. Notes are prepayable at par if voluntarily repaid within eighteen months of maturity; earlier prepayment may require additional consideration.(d)   As of December 31, 2023, the undrawn availability under the $7.0 billion 2016 Revolver was $6.3 billion. The Company pays a commitment fee on the undrawn available amount, which as of December 31, 2023 ranged from 0.080% to 0.300%, based on the Company's senior unsecured debt rating, per annum.(e)   The 2016 Term Loan A principal amortizes over a period ending in July 2027.(f)   As of December 31, 2023, the Company had $2.0 billion available for issuance under its $2.0 billion unsecured commercial paper program. The maturities of the Commercial Paper Notes, when outstanding, may vary but may not exceed 397 days from the date of issue.(g)   See further information on, and our definition and calculation of, Net Debt in this "Non-GAAP Measures and Other Information."

Cautionary Language Regarding Forward-Looking Statements

This news release contains forward-looking statements and information that are based on our management's current expectations as of the date of this news release. Statements that are not historical facts are hereby identified as forward-looking statements. In addition, words such as "estimate," "see," "anticipate," "project," "plan," "intend," "believe," "expect," "likely," "predicted," "positioned," "continue," "target," "focus," and any variations of these words and similar expressions are intended to identify forward-looking statements. Such statements include our full year 2024 Outlook and plans, projections, expectations and estimates regarding (1) the value of our business model and strategy and the demand for our communications infrastructure, (2) revenue growth and its driving factors, (3) net income (loss) (including on a per share basis), (4) AFFO (including on a per share basis) and its components and growth, (5) Adjusted EBITDA and its components and growth, (6) Organic Contribution to Site Rental Billings (including as Adjusted for Impact of Sprint Cancellations) and its components and growth, (7) site rental revenues and its components and growth, (8) interest expense, (9) the impact of Sprint Cancellations on our operating and financial results, (10) services contribution, (11) the growth in our business and its driving factors,(12) discretionary capital expenditures, (13) prepaid rent additions and amortization, (14) core leasing activity, (15) site rental billings, (16) Fiber business review and the potential impacts and benefits therefrom, (17) small cell deployment, including timing and billing with respect thereto, and (18) leadership structure benefits. All future dividends are subject to declaration by our board of directors.

Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including prevailing market conditions and the following:

  • Our business depends on the demand for our communications infrastructure (including towers, small cells and fiber), 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 tenants may materially and adversely affect our business (including reducing demand for our communications infrastructure or services).
  • A substantial portion of our revenues is derived from a small number of tenants, and the loss, consolidation or financial instability of any of such tenants may materially decrease revenues, reduce demand for our communications infrastructure and services and impact our dividend per share growth.
  • 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.
  • 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 lower than anticipated.
  • Failure to timely, efficiently and safely execute on our construction projects could adversely affect our business.
  • 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 rights to land under our towers and the right-of-way and other agreements related to our small cells and fiber, our business may be adversely affected.
  • Our services business has historically experienced significant volatility in demand, which reduces the predictability of our results.
  • 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.
  • Cybersecurity breaches or other information technology disruptions could adversely affect our operations, business and reputation.
  • Our business may be adversely impacted by climate-related events, natural disasters, including wildfires, and other unforeseen events.
  • 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 wireless technologies may not deploy or be adopted by tenants as rapidly or in the manner projected.
  • Our focus on and disclosure of our Environmental, Social and Governance position, metrics, strategy, goals and initiatives expose us to potential litigation and other adverse effects to our business.
  • We operate in a challenging labor market and failure to attract, recruit and retain qualified and experienced employees could adversely affect our business, operations and costs.
  • Our substantial level of indebtedness could adversely affect our ability to react to changes in our business, and the terms of our debt instruments 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, possibly on unfavorable terms, 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.
  • Certain provisions of our restated certificate of incorporation, as amended, 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.
  • 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.
  • 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 Real Estate Investment Trust ("REIT") involves highly technical and complex provisions of the Code. Failure to remain qualified as a REIT would result in our inability to deduct dividends to stockholders when computing our taxable income, thereby increasing our tax obligations and reducing our available cash.
  • 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. Our filings with the SEC are available through the SEC website at www.sec.gov or through our investor relations website at investor.crowncastle.com. We use our investor relations website to disclose information about us that may be deemed to be material. We encourage investors, the media and others interested in us to visit our investor relations website from time to time to review up-to-date information or to sign up for e-mail alerts to be notified when new or updated information is posted on the site.

As used in this release, the term "including," and any variation thereof, means "including without limitation."

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

 December 31,2023 December 31, 2022
ASSETS   
Current assets:   
Cash and cash equivalents$105  $156 
Restricted cash 171   166 
Receivables, net 481   593 
Prepaid expenses 103   102 
Deferred site rental receivables 116   127 
Other current assets 56   73 
Total current assets 1,032   1,217 
Deferred site rental receivables 2,239   1,954 
Property and equipment, net 15,666   15,407 
Operating lease right-of-use assets 6,187   6,526 
Goodwill 10,085   10,085 
Other intangible assets, net 3,179   3,596 
Other assets, net 139   136 
Total assets$38,527  $38,921 
    
LIABILITIES AND EQUITY   
Current liabilities:   
Accounts payable$252  $236 
Accrued interest 219   183 
Deferred revenues 605   736 
Other accrued liabilities 342   407 
Current maturities of debt and other obligations 835   819 
Current portion of operating lease liabilities 332   350 
Total current liabilities 2,585   2,731 
Debt and other long-term obligations 22,086   20,910 
Operating lease liabilities 5,561   5,881 
Other long-term liabilities 1,914   1,950 
Total liabilities 32,146   31,472 
Commitments and contingencies   
Stockholders' equity:   
Common stock, 0.01 par value; 1,200 shares authorized; shares issued and outstanding: December 31, 2023—434 and December 31, 2022—433 4   4 
Additional paid-in capital 18,270   18,116 
Accumulated other comprehensive income (loss) (4)  (5)
Dividends/distributions in excess of earnings (11,889)  (10,666)
Total equity 6,381   7,449 
Total liabilities and equity$38,527  $38,921 

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

 Three Months Ended December 31, Twelve Months Ended December 31,
  2023   2022   2023   2022 
Net revenues:       
Site rental$1,603  $1,578  $6,532  $6,289 
Services and other 71   186   449   697 
Net revenues 1,674   1,764   6,981   6,986 
Operating expenses:       
Costs of operations:(a)       
Site rental 407   400   1,664   1,602 
Services and other 48   122   316   466 
Selling, general and administrative 178   192   759   750 
Asset write-down charges 3   8   33   34 
Acquisition and integration costs    1   1   2 
Depreciation, amortization and accretion 439   431   1,754   1,707 
Restructuring charges 13      85    
Total operating expenses 1,088   1,154   4,612   4,561 
Operating income (loss) 586   610   2,369   2,425 
Interest expense and amortization of deferred financing costs, net (223)  (192)  (850)  (699)
Gains (losses) on retirement of long-term obligations          (28)
Interest income 5   2   15   3 
Other income (expense) (2)  (5)  (6)  (10)
Income (loss) before income taxes 366   415   1,528   1,691 
Benefit (provision) for income taxes (5)  (2)  (26)  (16)
Net income (loss)$361  $413  $1,502  $1,675 
        
Net income (loss), per common share:       
Basic$0.84  $0.95  $3.46  $3.87 
Diluted$0.83  $0.95  $3.46  $3.86 
Weighted-average common shares outstanding:       
Basic 434   433   434   433 
Diluted 434   434   434   434 
                

(a)  Exclusive of depreciation, amortization and accretion shown separately.

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

 Twelve Months Ended December 31,
  2023   2022 
Cash flows from operating activities:   
Net income (loss)$1,502  $1,675 
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:   
Depreciation, amortization and accretion 1,754   1,707 
(Gains) losses on retirement of long-term obligations    28 
Amortization of deferred financing costs and other non-cash interest 29   17 
Stock-based compensation expense, net 157   156 
Asset write-down charges 33   34 
Deferred income tax (benefit) provision 8   3 
Other non-cash adjustments, net 14   5 
Changes in assets and liabilities, excluding the effects of acquisitions:   
Increase (decrease) in liabilities (243)  (286)
Decrease (increase) in assets (128)  (461)
Net cash provided by (used for) operating activities 3,126   2,878 
Cash flows from investing activities:   
Capital expenditures (1,424)  (1,310)
Payments for acquisitions, net of cash acquired (96)  (35)
Other investing activities, net 1   (7)
Net cash provided by (used for) investing activities (1,519)  (1,352)
Cash flows from financing activities:   
Proceeds from issuance of long-term debt 3,843   748 
Principal payments on debt and other long-term obligations (79)  (74)
Purchases and redemptions of long-term debt (750)  (1,274)
Borrowings under revolving credit facility 3,613   3,495 
Payments under revolving credit facility (4,248)  (2,855)
Net borrowings (repayments) under commercial paper program (1,241)  976 
Payments for financing costs (39)  (14)
Purchases of common stock (30)  (65)
Dividends/distributions paid on common stock (2,723)  (2,602)
Net cash provided by (used for) financing activities (1,654)  (1,665)
Net increase (decrease) in cash, cash equivalents and restricted cash (47)  (139)
Effect of exchange rate changes on cash 1    
Cash, cash equivalents and restricted cash at beginning of period 327   466 
Cash, cash equivalents and restricted cash at end of period$281  $327 
Supplemental disclosure of cash flow information:   
Interest paid 800   684 
Income taxes paid (refunded) 18   10 

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

SEGMENT OPERATING RESULTS
 Three Months Ended December 31, 2023 Three Months Ended December 31, 2022
 Towers Fiber Other Total Towers Fiber Other Total
Segment site rental revenues$1,079 $524   $1,603 $1,086 $492   $1,578
Segment services and other revenues 65  6    71  183  3    186
Segment revenues 1,144  530    1,674  1,269  495    1,764
Segment site rental costs of operations 231  168    399  230  161    391
Segment services and other costs of operations 42  4    46  117  2    119
Segment costs of operations(a)(b) 273  172    445  347  163    510
Segment site rental gross margin(c) 848  356    1,204  856  331    1,187
Segment services and other gross margin(c) 23  2    25  66  1    67
Segment selling, general and administrative expenses(b) 19  47    66  30  50    80
Segment operating profit(c) 852  311    1,163  892  282    1,174
Other selling, general and administrative expenses(b)    $87  87     $84  84
Stock-based compensation expense, net     31  31      36  36
Depreciation, amortization and accretion     439  439      431  431
Restructuring charges     13  13        
Interest expense and amortization of deferred financing costs, net     223  223      192  192
Other (income) expenses to reconcile to income (loss) before income taxes(d)     4  4      16  16
Income (loss) before income taxes      $366       $415
                  

(a)   Exclusive of depreciation, amortization and accretion shown separately.(b)   Segment costs of operations exclude (1) stock-based compensation expense, net of $6 million and $8 million for the three months ended December 31, 2023 and 2022, respectively and (2) prepaid lease purchase price adjustments of $4 million for each of the three months ended December 31, 2023 and 2022. Segment selling, general and administrative expenses and other selling, general and administrative expenses exclude stock-based compensation expense, net of $25 million and $28 million for the three months ended December 31, 2023 and 2022, respectively.(c)   See "Non-GAAP Measures and Other Information" for a discussion and our definitions of segment site rental gross margin, segment services and other gross margin and segment operating profit.(d)   See condensed consolidated statement of operations for further information.

SEGMENT OPERATING RESULTS
 Twelve Months Ended December 31, 2023 Twelve Months Ended December 31, 2022
 Towers Fiber Other Total Towers Fiber Other Total
Segment site rental revenues$4,313 $2,219   $6,532 $4,322 $1,967   $6,289
Segment services and other revenues 421  28    449  685  12    697
Segment revenues 4,734  2,247    6,981  5,007  1,979    6,986
Segment site rental costs of operations 943  686    1,629  918  650    1,568
Segment services and other costs of operations 294  12    306  447  9    456
Segment costs of operations(a)(b) 1,237  698    1,935  1,365  659    2,024
Segment site rental gross margin(c) 3,370  1,533    4,903  3,404  1,317    4,721
Segment services and other gross margin(c) 127  16    143  238  3    241
Segment selling, general and administrative expenses(b) 104  194    298  115  190    305
Segment operating profit(c) 3,393  1,355    4,748  3,527  1,130    4,657
Other selling, general and administrative expenses(b)    $333  333     $317  317
Stock-based compensation expense, net     157  157      156  156
Depreciation, amortization and accretion     1,754  1,754      1,707  1,707
Restructuring charges     85  85        
Interest expense and amortization of deferred financing costs, net     850  850      699  699
Other (income) expenses to reconcile to income (loss) before income taxes(d)     41  41      87  87
Income (loss) before income taxes      $1,528       $1,691
                  

(a)   Exclusive of depreciation, amortization and accretion shown separately.(b)  Segment costs of operations exclude (1) stock-based compensation expense, net of $29 million and $28 million for the twelve months ended December 31, 2023 and 2022, respectively, and (2) prepaid lease purchase price adjustments of $16 million for each of the twelve months ended December 31, 2023 and 2022. Segment selling, general and administrative expenses and other selling, general and administrative expenses exclude stock-based compensation expense, net of $128 million for each of the twelve months ended December 31, 2023 and 2022.(c)   See "Non-GAAP Measures and Other Information" for a discussion and our definitions of segment site rental gross margin, segment services and other gross margin and segment operating profit.(d)   See condensed consolidated statement of operations for further information.

Contacts:Dan Schlanger, CFO
 Kris Hinson, VP Corp Finance & Treasurer
 Crown Castle Inc.
 713-570-3050
  

Charts accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/eb784ef7-bd48-44d2-8bd0-feebc04e8713https://www.globenewswire.com/NewsRoom/AttachmentNg/efed6789-fdd1-4d7a-a354-a1582620f745

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Chart 1

2024 Outlook for Organic Contribution to Site Rental Billings, Change in Site Rental Revenues ($ in millions)
Chart 2

2024 Outlook for Change in AFFO ($ in millions)
Source: Crown Castle Inc.

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