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 Crown Castle Reports Fourth Quarter and Full Year 2017 Results, Raises Outlook for Full Year 2018
   Wednesday, January 24, 2018 4:15:20 PM ET

Crown Castle International Corp. (CCI ) ("Crown Castle") today reported results for the quarter and year ended December 31, 2017.

"Our solid full year 2017 results and increased Outlook for 2018 reflect the strong fundamentals across our business as we remain focused on consistently delivering value to our customers and shareholders," stated Jay Brown, Crown Castle’s Chief Executive Officer. "By all measures, 2017 was a tremendous year for Crown Castle. We delivered 8% growth in dividends per share, at the high end of our long-term annual dividend growth target, while making significant investments to strategically position Crown Castle to remain the leading shared infrastructure provider in the U.S. In the near-term, we remain excited by the increasing investment activity by our customers that is translating to an expected increase in new leasing activity across towers, small cells and fiber solutions in 2018. This level of leasing activity demonstrates the attractiveness of our unique portfolio of assets, which we believe are well positioned to benefit from the continued growth in demand for data. As a result, we remain confident in our ability to grow our cash flows and deliver on our 7% to 8% annual growth target in dividends per share."

RESULTS FOR THE QUARTER

The table below sets forth select financial results for the three month period ended December 31, 2017 and December 31, 2016. For further information, refer to the financial statements and non-GAAP, segment and other calculation reconciliations included in this press release.

(in millions)                                                                                                  Actual                                Midpoint  Actual
                                                                                                                                                     Q4 2017   Compared to
                                                                                                                                                     Outlook   Outlook
                                                                                                               Q4 2017   Q4 2016 $ Change  % Change
Site rental revenues                                                                                           $   1,051 $   817 +$   234  +29  %    $    907  +$    144
Net income (loss)                                                                                              $   98    $   125 -$   27   -22  %    $    104  -$    6
Adjusted EBITDA                                                                                                $   707   $   575 +$   132  +23  %    $    627  +$    81
AFFO                                                                                                           $   512   $   406 +$   106  +26  %    $    433  +$    79
Weighted-average common shares outstanding - diluted                                                               408       353      +55  +16  %         408        --
Note: Figures may not tie due to rounding.
(a) See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
(b) As issued on October 18, 2017.
(c) Attributable to CCIC common stockholders.

HIGHLIGHTS FROM THE QUARTER

RESULTS FOR THE YEAR

The table below sets forth select financial results for the year ended December 31, 2017. For further information, refer to the financial statements and non-GAAP and other calculation reconciliations included in this press release.

(in millions)                                                                                   Actual                              Midpoint   Actual
                                                                                                                                    Full Year  Compared to
                                                                                                                                    2017       Outlook
                                                                                                                                    Outlook
                                                                                                  2017    2016  $ Change  % Change
Site rental revenues                                                                            $ 3,669 $ 3,233 +$   436  +13  %    $    3,525 +$    144
Net income (loss)                                                                               $ 445   $ 357   +$   88   +25  %    $    451   -$    6
Adjusted EBITDA                                                                                 $ 2,482 $ 2,228 +$   254  +11  %    $    2,402 +$    81
AFFO                                                                                            $ 1,860 $ 1,610 +$   250  +16  %    $    1,782 +$    79
Weighted-average common shares outstanding - diluted                                              383     341        +42  +12  %         383         --
Note: Figures may not tie due to rounding
(a) See reconciliation of this non-GAAP financial measure to net income (loss) included herein.
(b) As issued on October 18, 2017.
(c) Attributable to CCIC common stockholders

HIGHLIGHTS FROM THE YEAR

"Our positive 2017 results and increased full year 2018 Outlook are a result of great execution by our team as they continue to deliver for our customers who are utilizing our unique portfolio of infrastructure assets to meet the robust underlying growth in data," stated Dan Schlanger, Crown Castle’s Chief Financial Officer. "Looking back, we had a very successful 2017. We deployed approximately $9 billion of capital to secure premium metro fiber assets in top markets where we see the greatest long-term demand for small cells and fiber solutions, and improved our financial flexibility by increasing the average maturity of our debt and lowering our average interest rate, all while delivering an 8% increase in dividends per share. Looking forward, we are focused on successfully integrating our recent acquisitions and are excited by the long-term opportunity in front of Crown Castle to deliver on our 7% to 8% annual growth target in dividends per share."

OUTLOOK

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

The following table sets forth Crown Castle’s current Outlook for first quarter 2018 and full year 2018:
(in millions)                                                 First Quarter 2018                                  Full Year 2018
Site rental revenues                                          $                                  1,132 to $ 1,142 $                                  4,582 to $ 4,627
Site rental cost of operations                                $                                  341   to $ 351   $                                  1,360 to $ 1,405
Net income (loss)                                             $                                  116   to $ 141   $                                  511   to $ 591
Adjusted EBITDA                                               $                                  745   to $ 755   $                                  3,049 to $ 3,094
Interest expense and amortization of deferred financing costs $                                  157   to $ 167   $                                  642   to $ 687
FFO                                                           $                                  477   to $ 487   $                                  1,965 to $ 2,010
AFFO                                                          $                                  538   to $ 548   $                                  2,219 to $ 2,264
Weighted-average common shares outstanding - diluted                                             408                                                 408
(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 interest expense and amortization of deferred financing costs" herein for a discussion of non-cash interest expense.
(d) Attributable to CCIC common stockholders.
(e) Our AFFO for historical periods may not be comparable to those periods presented prospectively from and after January 1, 2018, including our Outlook for first quarter 2018 and full year 2018 herein.  See "Sustaining capital expenditures" and "Integration capital expenditures" within "Non-GAAP Financial Measures, Segment Measures and Other Calculations" for further information.
(f) The  assumption for first quarter 2018 and full year 2018 diluted weighted-average common shares outstanding is based on diluted common shares outstanding as of December 31, 2017.  For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of the 6.875% Mandatory Convertible Preferred Stock in the share count.

Full Year 2018 Outlook

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

                                                     Midpoint of FY 2018 Outlook to FY 2017 Actual Comparison
(in millions)                                        Current                             Full Year                           $ Change                          % Change                        Previous                            Current
                                                     Full Year                           2017                                                                                                  Full Year                           Compared
                                                     2018                                Actual                                                                                                2018                                to
                                                     Outlook                                                                                                                                   Outlook                             Previous
                                                                                                                                                                                                                                   Outlook
Site rental revenues                                 $                             4,605 $                             3,669 +$                            936 +26                           % $                             4,569 +$                            36
Net income (loss)                                    $                             551   $                             445   +$                            106 +24                           % $                             555   -$                            4
Adjusted EBITDA                                      $                             3,072 $                             2,482 +$                            590 +24                           % $                             3,036 +$                            36
AFFO                                                 $                             2,242 $                             1,860 +$                            382 +21                           % $                             2,242                               --
Weighted-average common shares outstanding - diluted                               408                                 383                                 +25 +7                            %                               408                                 --
(a) See reconciliation of this non-GAAP financial measure to net income (loss) and definition included herein.
(b) Our AFFO for historical periods may not be comparable to those periods presented prospectively from and after January 1, 2018, including our Outlook for first quarter 2018 and full year 2018 herein.  See "Sustaining capital expenditures" and "Integration capital expenditures" within "Non-GAAP Financial Measures, Segment Measures and Other Calculations" for further information.
(c) Attributable to CCIC common stockholders.
(d) The assumption for full year 2018 diluted weighted-average common shares outstanding is based on diluted common shares outstanding as of December 31, 2017.  For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of the 6.875% Mandatory Convertible Preferred Stock in the share count.
(e) As issued on October 18, 2017.

A photo accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/987fa22d-d9d6-4922-81b5-381f87e5a469

A photo accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/be1c4894-2e27-4063-b08d-e267d05c5e95

CONFERENCE CALL DETAILS

Crown Castle has scheduled a conference call for Thursday, January 25, 2018, at 10:30 a.m. Eastern time to discuss its fourth quarter 2017 results. The conference call may be accessed by dialing 800-239-9838 and asking for the Crown Castle call (access code 3593733) at least 30 minutes prior to the start time. The conference call may also be accessed live over the Internet at http://investor.crowncastle.com . Supplemental materials for the call have been posted on the Crown Castle website at http://investor.crowncastle.com .

A telephonic replay of the conference call will be available from 1:30 p.m. Eastern time on Thursday, January 25, 2018, through 1:30 p.m. Eastern time on Wednesday, April 25, 2018, and may be accessed by dialing 888-203-1112 and using access code 3593733. An audio archive will also be available on the company’s website at http://investor.crowncastle.com shortly after the call and will be accessible for approximately 90 days.

ABOUT CROWN CASTLE

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

Non-GAAP Financial Measures, Segment Measures and Other Calculations

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

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

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

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

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 capital improvement capital expenditures and corporate capital expenditures (i.e., sustaining capital expenditures). See "Sustaining capital expenditures" and "Integration capital expenditures" below for further information regarding our calculation of certain components of AFFO.

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

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

Segment Measures

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

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

Segment Operating Profit. We define Segment Operating Profit as segment revenues less segment cost of operations and segment general and administrative expenses, excluding stock-based compensation expense and prepaid lease purchase price adjustments recorded in cost of operations.

As a result of our 2017 acquisitions of fiber assets, we have changed the name of our "Small Cells" operating segment to "Fiber". The change did not impact the composition of the aforementioned segment.

Other Calculations

Discretionary capital expenditures. We define discretionary capital expenditures as those capital expenditures made with respect to activities which we believe exhibit sufficient potential to enhance long-term stockholder value. They consist of (1) improvements to existing communications infrastructure and construction of new communications infrastructure (collectively referred to as "revenue generating") and (2) purchases of land assets under towers as we seek to manage our interests in the land beneath our towers.

Sustaining capital expenditures. We define sustaining capital expenditures as those capital expenditures made with respect to either (1) corporate capital expenditures, such as buildings, information technology equipment and office equipment or (2) capital improvement capital expenditures to our communications infrastructure assets that enable our customers’ ongoing quiet enjoyment of the communications infrastructure. For periods presented prior to 2018, integration capital expenditures are included within sustaining capital expenditures, as discussed in "Integration capital expenditures" below.

Integration capital expenditures. We anticipate incurring initial capital expenditures related to integrating Lightower into our existing business. We anticipate that the majority of these expected capital expenditures will be incurred beginning in 2018 and will primarily relate to the overall integration of Lightower’s information technology assets into our business. We believe these expenditures are not indicative of our ongoing financial performance, and therefore their inclusion in our AFFO may hinder usefulness to investors and other interested parties. Moreover, integration capital expenditures were approximately $3.6 million and $0.1 million for the years ended December 31, 2017 and 2016, respectively, and as such, we believe that these costs have not previously been significant enough to warrant separate consideration with regard to the impact to AFFO.

As such, for periods presented prior to 2018, integration capital expenditures were included as a component within sustaining capital expenditures. For periods presented beginning January 1, 2018, including our Outlook for first quarter 2018 and full year 2018 included herein, we no longer reflect integration capital expenditures within sustaining capital expenditures and consider integration capital expenditures as its own component of our capital expenditures.

Because of our reclassification of integration capital expenditures, our AFFO for historical periods may not be comparable to those periods presented prospectively from and after January 1, 2018, including our Outlook for first quarter 2018 and full year 2018 included herein.

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

The tables set forth below reconcile the non-GAAP financial measures used herein to comparable GAAP financial measures. The components in these tables may not sum to the total due to rounding.

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

Reconciliation of Historical Adjusted EBITDA:

                                                              For the Three Months Ended                        For the Twelve Months Ended
                                                              December 31,             December 31,             December 31,             December 31,
                                                              2017                     2016                     2017                     2016
(in millions)
Net income (loss)                                             $          98.1          $          124.7         $          444.6         $          357.0
Adjustments to increase (decrease) net income (loss):
Asset write-down charges                                      7.0                      6.2                      17.3                     34.5
Acquisition and integration costs                             34.4                     6.0                      61.4                     17.5
Depreciation, amortization and accretion                      362.2                    273.8                    1,242.4                  1,108.6
Amortization of prepaid lease purchase price adjustments      5.0                      5.3                      20.1                     21.3
Interest expense and amortization of deferred financing costs 160.3                    129.4                    590.7                    515.0
(Gains) losses on retirement of long-term obligations         --                       --                       3.5                      52.3
Interest income                                               (6.2                  )  (0.3                  )  (18.8                 )  (0.8                  )
Other (income) expense                                        1.5                      4.2                      (2.0                  )  8.8
(Benefit) provision for income taxes                          14.8                     4.1                      26.0                     16.9
Stock-based compensation expense                              30.0                     21.2                     96.4                     96.5
Adjusted EBITDA                                               $          707.0         $          574.6         $          2,481.8       $          2,227.5
(a)  See the reconciliation of "components of 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:

                                                              Q1 2018                           Full Year 2018
(in millions)                                                 Outlook                           Outlook
Net income (loss)                                             $116            to $141           $511            to $591
Adjustments to increase (decrease) net income (loss):
Asset write-down charges                                      $9              to $11            $35             to $45
Acquisition and integration costs                             $13             to $17            $45             to $55
Depreciation, amortization and accretion                      $380            to $400           $1,566          to $1,601
Amortization of prepaid lease purchase price adjustments      $4              to $6             $19             to $21
Interest expense and amortization of deferred financing costs $157            to $167           $642            to $687
(Gains) losses on retirement of long-term obligations         $0              to $0             $0              to $0
Interest income                                               $(1           ) to $1             $(2           ) to $2
Other (income) expense                                        $(1           ) to $3             $3              to $5
(Benefit) provision for income taxes                          $8              to $12            $34             to $42
Stock-based compensation expense                              $27             to $31            $116            to $124
Adjusted EBITDA                                               $745            to $755           $3,049          to $3,094
(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 Historical FFO and AFFO:

                                                                 For the Three Months Ended                                                For the Twelve Months Ended
(in millions)                                                    December 31,                         December 31,                         December 31,                                               December 31,
                                                                 2017                                 2016                                 2017                                                       2016
Net income (loss)                                                $                           98.1     $                           124.7    $                           444.6                          $                           357.0
Real estate related depreciation, amortization and accretion     354.1                                267.0                                1,211.4                                                    1,082.1
Asset write-down charges                                         7.0                                  6.2                                  17.3                                                       34.5
Dividends on preferred stock                                     (29.9                             )  (11.0                             )  (29.9                                                   )  (44.0                                                   )
FFO                                                              $                           429.3    $                           386.9    $                           1,643.3                        $                           1,429.5
FFO (from above)                                                 $                           429.3    $                           386.9    $                           1,643.3                        $                           1,429.5
Adjustments to increase (decrease) FFO:
Straight-lined revenue                                           (2.6                              )  (5.0                              )  0.3                                                        (47.4                                                   )
Straight-lined expense                                           22.7                                 23.1                                 92.6                                                       94.2
Stock-based compensation expense                                 30.0                                 21.2                                 96.4                                                       96.5
Non-cash portion of tax provision                                11.9                                 2.1                                  9.2                                                        7.3
Non-real estate related depreciation, amortization and accretion 8.1                                  6.9                                  31.0                                                       26.5
Amortization of non-cash interest expense                        1.7                                  3.0                                  9.4                                                        14.3
Other (income) expense                                           1.5                                  4.2                                  (2.0                                                    )  8.8
(Gains) losses on retirement of long-term obligations            --                                   --                                   3.5                                                        52.3
Acquisition and integration costs                                34.4                                 6.0                                  61.4                                                       17.5
Capital improvement capital expenditures                         (13.5                             )  (17.5                             )  (40.8                                                   )  (42.8                                                   )
Corporate capital expenditures                                   (11.6                             )  (24.6                             )  (44.0                                                   )  (46.9                                                   )
AFFO                                                             $                           511.8    $                           406.4    $                           1,860.4                        $                           1,609.9
(a) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of FFO and AFFO.
(b) FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid.
(c) Diluted weighted-average common shares outstanding were 408.1 million, 352.9 million, 383.2 million and 340.9 million for the three months ended December 31, 2017 and 2016 and the twelve months ended December 31, 2017 and 2016, respectively.  For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of the 6.875% Mandatory Convertible Preferred Stock in the share count.
(d) The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(e) Attributable to CCIC common stockholders.

Reconciliation of Current Outlook for FFO and AFFO:

                                                                 Q1 2018                                                    Full Year 2018
(in millions)                                                    Outlook                                                    Outlook
Net income (loss)                                                $116                        to $141                        $511                        to $591
Real estate related depreciation, amortization and accretion     $367                        to $377                        $1,500                      to $1,520
Asset write-down charges                                         $9                          to $11                         $35                         to $45
Dividends on preferred stock                                     $(28                      ) to $(28)                       $(113                     ) to $(113)
FFO                                                              $477                        to $487                        $1,965                      to $2,010
FFO (from above)                                                 $477                        to $487                        $1,965                      to $2,010
Adjustments to increase (decrease) FFO:
Straight-lined revenue                                           $(7                       ) to $3                          $21                         to $41
Straight-lined expense                                           $17                         to $27                         $72                         to $92
Stock-based compensation expense                                 $27                         to $31                         $116                        to $124
Non-cash portion of tax provision                                $3                          to $13                         $(8                       ) to $7
Non-real estate related depreciation, amortization and accretion $13                         to $23                         $66                         to $81
Amortization of non-cash interest expense                        $0                          to $5                          $5                          to $15
Other (income) expense                                           $(1                       ) to $3                          $3                          to $5
(Gains) losses on retirement of long-term obligations            $0                          to $0                          $0                          to $0
Acquisition and integration costs                                $13                         to $17                         $45                         to $55
Capital improvement capital expenditures                         $(22                      ) to $(12)                       $(76                      ) to $(61)
Corporate capital expenditures                                   $(21                      ) to $(11)                       $(56                      ) to $(41)
AFFO                                                             $538                        to $548                        $2,219                      to $2,264
(a)  The assumption for first quarter 2018 and full year 2018 diluted weighted-average common shares outstanding is 408.1 million based on diluted common shares outstanding as of December 31, 2017.  For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of the 6.875% Mandatory Convertible Preferred Stock in the share count.
(b)  See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion for our definitions of FFO and AFFO.
(c)  FFO and AFFO are reduced by cash paid for preferred stock dividends during the period in which they are paid.
(d)  The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(e)  Attributable to CCIC common stockholders.
(f)  Our AFFO for historical periods may not be comparable to those periods presented prospectively from and after January 1, 2018, including our Outlook for first quarter 2018 and full year 2018 herein.  See "Sustaining capital expenditures" and "Integration capital expenditures" within "Non-GAAP Financial Measures, Segment Measures and Other Calculations" for further information.

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

                                                              Previously Issued         Previously Issued          Previously Issued
                                                              Q4 2017                   Full Year 2017             Full Year 2018
(in millions)                                                 Outlook                   Outlook                    Outlook
Net income (loss)                                             $91       to     $116     $438      to     $463      $515      to     $595
Adjustments to increase (decrease) net income (loss):
Asset write-down charges                                      $9        to     $11      $19       to     $21       $35       to     $45
Acquisition and integration costs                             $11       to     $15      $38       to     $42       $64       to     $74
Depreciation, amortization and accretion                      $296      to     $310     $1,176    to     $1,190    $1,508    to     $1,544
Amortization of prepaid lease purchase price adjustments      $4        to     $6       $19       to     $21       $19       to     $21
Interest expense and amortization of deferred financing costs $159      to     $164     $590      to     $595      $644      to     $689
(Gains) losses on retirement of long-term obligations         $0        to     $0       $4        to     $4        $0        to     $0
Interest income                                               $(1     ) to     $1       $(14    ) to     $(12)     $(2     ) to     $2
Other (income) expense                                        $(1     ) to     $3       $(4     ) to     $0        $3        to     $5
(Benefit) provision for income taxes                          $3        to     $7       $14       to     $18       $32       to     $40
Stock-based compensation expense                              $23       to     $25      $89       to     $91       $115      to     $120
Adjusted EBITDA                                               $624      to     $629     $2,399    to     $2,404    $3,013    to     $3,058
(a)  See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definition of Adjusted EBITDA.
(b)  The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.

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

                                                                 Previously Issued                            Previously Issued                            Previously Issued
                                                                 Q4 2017                                      Full Year 2017                               Full Year 2018
(in millions)                                                    Outlook                                      Outlook                                      Outlook
Net income (loss)                                                $91                  to $116                 $438                 to $463                 $515                                   to $595
Real estate related depreciation, amortization and accretion     $290                 to $300                 $1,147               to $1,157               $1,442                                 to $1,463
Asset write-down charges                                         $9                   to $11                  $19                  to $21                  $35                                    to $45
Dividends on preferred stock                                     $(30               ) to $(30)                $(30               ) to $(30)                $(113                                ) to $(113)
FFO                                                              $376                 to $381                 $1,590               to $1,595                                 $1,910               to $1,955
FFO (from above)                                                 $376                 to $381                 $1,590               to $1,595               $1,910                                 to $1,955
Adjustments to increase (decrease) FFO:
Straight-lined revenue                                           $5                   to $10                  $8                   to $13                  $57                                    to $77
Straight-lined expense                                           $20                  to $25                  $90                  to $95                  $70                                    to $90
Stock-based compensation expense                                 $23                  to $25                  $89                  to $91                  $115                                   to $120
Non-cash portion of tax provision                                $(2                ) to $3                   $(4                ) to $1                   $(7                                  ) to $8
Non-real estate related depreciation, amortization and accretion $6                   to $10                  $29                  to $33                  $66                                    to $81
Amortization of non-cash interest expense                        $1                   to $6                   $9                   to $14                  $6                                     to $16
Other (income) expense                                           $(1                ) to $3                   $(4                ) to $0                   $3                                     to $5
(Gains) losses on retirement of long-term obligations            $0                   to $0                   $4                   to $4                   $0                                     to $0
Acquisition and integration costs                                $11                  to $15                  $38                  to $42                  $64                                    to $74
Capital improvement capital expenditures                         $(11               ) to $(6)                 $(39               ) to $(34)                $(73                                 ) to $(63)
Corporate capital expenditures                                   $(19               ) to $(14)                $(52               ) to $(47)                $(53                                 ) to $(43)
AFFO                                                             $430                 to $435                 $1,779               to $1,784               $2,219                                 to $2,264
(a)  Previously issued fourth quarter 2017, full year 2017 and full year 2018 Outlook assumes diluted common shares outstanding as of September 30, 2017 of approximately 408.0 million, 383.4 million and 408.0 million, respectively.  For all periods presented, the diluted weighted-average common shares outstanding does not include any assumed conversion of the 6.875% Mandatory Convertible Preferred Stock in the share count.
(b)  See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion for our definitions of FFO and AFFO.
(c)  The above reconciliation excludes line items included in our definition which are not applicable for the periods shown.
(d)  Attributable to CCIC common stockholders.

The components of changes in site rental revenues for the quarters ended December 31, 2017 and 2016 are as follows:

                                                                                                      Three Months Ended
                                                                                                      December 31,
(in millions)                                                                                         2017                                            2016
Components of changes in site rental revenues:
Prior year site rental revenues exclusive of straight-lined revenues associated with fixed escalators $                                      812      $    763
New leasing activity                                                                                  42                                              38
Escalators                                                                                            20                                              22
Non-renewals                                                                                          (18                                          )  (21      )
Organic Contribution to Site Rental Revenues                                                          44                                              39
Straight-lined revenues associated with fixed escalators                                              3                                               5
Acquisitions and builds                                                                               192                                             10
Other                                                                                                 --                                              --
Total GAAP site rental revenues                                                                       $                                      1,051    $    817
Year-over-year changes in revenue:
Reported GAAP site rental revenues                                                                    28.6                                         %
Organic Contribution to Site Rental Revenues                                                          5.5                                          %
(a) Additional information regarding Crown Castle’s site rental revenues, including projected revenue from customer licenses, tenant non-renewals, straight-lined revenues and prepaid rent is available in Crown Castle’s quarterly Supplemental Information Package posted in the Investors section of its website.
(b) Includes revenues from amortization of prepaid rent in accordance with GAAP.
(c) Includes revenues from the construction of new small cell nodes, exclusive of straight-lined revenues related to fixed escalators.
(d) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein.
(e) The financial impact of acquisitions, as measured by the initial contribution, and tower builds is excluded from Organic Contribution to Site Rental Revenues until the one-year anniversary of the acquisition or build.
(f) Calculated as the percentage change from prior year site rental revenues, exclusive of straight-lined revenues associated with fixed escalations compared to Organic Contribution to Site Rental Revenues for the current period.

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

(in millions)                                                                                         Full Year                                       Full Year
                                                                                                      2017                                            2018 Outlook
Components of changes in site rental revenues:
Prior year site rental revenues exclusive of straight-lined revenues associated with fixed escalators $3,186                                          $3,670
New leasing activity                                                                                  166                                             190-220
Escalators                                                                                            84                                              80-90
Non-renewals                                                                                          (90)                                            (95)-(75)
Organic Contribution to Site Rental Revenues                                                          160                                             185-225
Straight-lined revenues associated with fixed escalators                                              --                                              (40)-(20)
Acquisitions and builds                                                                               323                                             745-765
Other                                                                                                 --                                              --
Total GAAP site rental revenues                                                                       $3,669                                          $4,582-$4,627
Year-over-year changes in revenue:
Reported GAAP site rental revenues                                                                    13.5%                                           25.5%
Organic Contribution to Site Rental Revenues                                                          5.1%                                            5.6%
(a) Additional information regarding Crown Castle’s site rental revenues, including projected revenue from customer licenses, tenant non-renewals, straight-lined revenues and prepaid rent is available in Crown Castle’s quarterly Supplemental Information Package posted in the Investors section of its website.
(b) Includes revenues from amortization of prepaid rent in accordance with GAAP.
(c) Includes revenues from the construction of new small cell nodes, exclusive of straight-lined revenues related to fixed escalators.
(d) See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein.
(e) The financial impact of acquisitions, as measured by the initial contribution, and tower builds is excluded from Organic Contribution to Site Rental Revenues until the one-year anniversary of the acquisition or build.
(f) Calculated based on midpoint of Full Year 2018 Outlook.
(g) Calculated as the percentage change from prior year site rental revenues, exclusive of straight-lined revenues associated with fixed escalations compared to Organic Contribution to Site Rental Revenues for the current period.

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

                                                                                For the Three Months Ended
(in millions)                                                                   December 31,     December 31,
                                                                                2017             2016
Interest expense on debt obligations                                            $    158.5       $    126.3
Amortization of deferred financing costs and adjustments on long-term debt, net 5.1              4.6
Other, net                                                                      (3.3       )     (1.5       )
Interest expense and amortization of deferred financing costs                   $    160.3       $    129.4

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

                                                                                Q1 2018        Full Year 2018
(in millions)                                                                   Outlook        Outlook
Interest expense on debt obligations                                            $157  to $162  $  645    to $665
Amortization of deferred financing costs and adjustments on long-term debt, net $4    to $7    $  18     to $23
Other, net                                                                      $(4 ) to $(2)  $  (13 )  to $(8)
Interest expense and amortization of deferred financing costs                   $157  to $167  $  642    to $687

Debt balances and maturity dates as of December 31, 2017 are as follows:

(in millions)                                                                                                Face Value            Final Maturity
Bank debt - variable rate:
2016 Revolver                                                                                                $          980.0      Aug. 2022
2016 Term Loan A                                                                                             2,400.9               Aug. 2022
Total bank debt                                                                                              3,380.9
Securitized debt - fixed rate:
Secured Notes, Series 2009-1, Class A-1                                                                      33.1                  Aug. 2019
Secured Notes, Series 2009-1, Class A-2                                                                      70.0                  Aug. 2029
Tower Revenue Notes, Series 2010-3                                                                           1,250.0               Jan. 2040
Tower Revenue Notes, Series 2010-6                                                                           1,000.0               Aug. 2040
Tower Revenue Notes, Series 2015-1                                                                           300.0                 May 2042
Tower Revenue Notes, Series 2015-2                                                                           700.0                 May 2045
Total securitized debt                                                                                       3,353.1
Bonds - fixed rate:
5.250% Senior Notes                                                                                          1,650.0               Jan. 2023
3.849% Secured Notes                                                                                         1,000.0               Apr. 2023
4.875% Senior Notes                                                                                          850.0                 Apr. 2022
3.400% Senior Notes                                                                                          850.0                 Feb. 2021
4.450% Senior Notes                                                                                          900.0                 Feb. 2026
3.700% Senior Notes                                                                                          750.0                 June 2026
2.250% Senior Notes                                                                                          700.0                 Sept. 2021
4.000% Senior Notes                                                                                          500.0                 Mar. 2027
4.750% Senior Notes                                                                                          350.0                 May 2047
3.200% Senior Notes                                                                                          750.0                 Sept. 2024
3.650% Senior Notes                                                                                          1,000.0               Sept. 2027
Total bonds                                                                                                  9,300.0
Capital leases and other obligations                                                                         227.8                 Various
Total Debt                                                                                                   $          16,261.8
Less: Cash and Cash Equivalents                                                                              $          314.1
Net Debt                                                                                                     $          15,947.7
?
(a) The Senior Secured Tower Revenue Notes, Series 2010-3 and 2010-6 have anticipated repayment dates in 2020.  The Senior Secured Tower Revenue Notes, Series 2015-1 and 2015-2 have anticipated repayment dates in 2022 and 2025, respectively.  In January 2018, the Company issued $750.0 million aggregate principal amount of 3.150% senior unsecured notes due July 2023 and $1.0 billion aggregate principal amount of 3.800% senior unsecured notes due February 2028 and used the net proceeds of such offering to repay (1) in full the Senior Secured Tower Revenue Notes, Series 2010-3 and (2) a portion of the outstanding borrowings under the 2016 Revolver.
(b) The Senior Secured Notes, Series 2009-1, Class A-1 principal amortizes during the period beginning in January 2010 and ending in 2019 and the Senior Secured Notes, 2009-1, Class A-2 principal amortizes during the period beginning in 2019 and ending in 2029.
(c) Excludes restricted cash.

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

(in millions)                                                              For the Three Months
                                                                           Ended December 31, 2017
Total face value of debt                                                   $                                                                          16,261.8
Ending cash and cash equivalents                                           314.1
Total Net Debt                                                             $                                                                          15,947.7
Adjusted EBITDA for the three months ended December 31, 2017               $                                                                          707.0
Last quarter annualized Adjusted EBITDA                                    2,828.0
Net Debt to Last Quarter Annualized Adjusted EBITDA                        5.6                                                                                 x
(a) Excludes restricted cash.
(b) The Net Debt to Last Quarter Annualized Adjusted EBITDA calculation does not give effect to a full quarter ownership of Lightower, as this acquisition closed on November 1, 2017.  For the quarter ended December 31, 2017, Lightower contribution to the Company’s Adjusted EBITDA was $83 million.

Components of Capital Expenditures:

                                  For the Three Months Ended
(in millions)                     December 31, 2017                     December 31, 2016
                                  Towers    Fiber     Other  Total      Towers    Fiber     Other    Total
Discretionary:
Purchases of land interests       $  14.6   $  --     $ --   $  14.6    $  16.7   $  --     $  --    $  16.7
Communications infrastructure     76.2      260.6     --     336.8      77.0      123.9     --       200.9
construction and improvements
Sustaining:
Capital improvement and corporate 10.6      7.8       6.7    25.1       16.9      6.3       18.9     42.1
Total                             $  101.4  $  268.4  $ 6.7  $  376.5   $  110.6  $  130.2  $  18.9  $  259.7

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

Cautionary Language Regarding Forward-Looking Statements

This press release contains forward-looking statements and information that are based on our management’s current expectations. Such statements include our Outlook and plans, projections, and estimates regarding (1) potential benefits, returns, opportunities and customer and shareholder value which may be derived from our business, assets, investments, acquisitions and dividends, including on a long-term basis, (2) our strategy, strategic position, business model and capabilities and the strength of our business, (3) our customers’ investments and the demand from our customers, and the benefits which may be derived therefrom, (4) growth in demand for data and the benefits which may be derived therefrom, (5) our growth, including our revenue growth, long-term prospects and the trends impacting our business, (6) our ability to successfully integrate our recent acquisitions, including Lightower, and the potential benefits and contributions which may be derived from such acquisitions, including (a) our ability to deliver on our dividend growth target and (b) the contribution to or impact on our financial or operating results, including site rental revenues, Adjusted EBITDA, net income, AFFO and Organic Contribution to Site Rental Revenues, (7) leasing environment and activity, (8) our investments, including in towers, small cells and fiber, and the potential growth, returns and benefits therefrom, (9) our dividends, including our dividend plans and the amount of our dividends and dividend growth rate and targets, (10) strategic position of and demand for our communications infrastructure (including fiber solutions and small cells) and services and the geographic location of such demand, (11) cash flows, (12) potential contribution from the deployment of FirstNet, (13) tenant non-renewals, including the impact thereof, (14) capital expenditures, including sustaining capital expenditures and integration capital expenditures and the timing thereof, (15) straight-line adjustments, (16) site rental revenues and estimated growth thereof, (17) site rental cost of operations, (18) net income (loss), (19) Adjusted EBITDA, (20) expenses, including interest expense and amortization of deferred financing costs, (21) FFO, (22) AFFO and estimated growth thereof, (23) Organic Contribution to Site Rental Revenues, (24) our weighted-average common shares outstanding, including on a diluted basis, (25) network services contribution and (26) the utility of certain financial measures, including non-GAAP financial measures. Such forward-looking statements are subject to certain risks, uncertainties and assumptions prevailing market conditions and the following:

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

 CROWN CASTLE INTERNATIONAL CORP.
 CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
 (in thousands, except share amounts)
                                                                                                              December 31,           December 31,
                                                                                                              2017                   2016
ASSETS
Current assets:
Cash and cash equivalents                                                                                     $     314,094          $     567,599
Restricted cash                                                                                               121,065                124,547
Receivables, net                                                                                              397,585                373,532
Prepaid expenses                                                                                              162,366                128,721
Other current assets                                                                                          138,670                130,362
Total current assets                                                                                          1,133,780              1,324,761
Deferred site rental receivables                                                                              1,300,338              1,317,658
Property and equipment, net                                                                                   12,932,885             9,805,315
Goodwill                                                                                                      10,021,468             5,757,676
Other intangible assets, net                                                                                  5,961,759              3,650,072
Long-term prepaid rent and other assets, net                                                                  879,340                819,610
Total assets                                                                                                  $     32,229,570       $     22,675,092
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                                                                                              $     230,279          $     188,516
Accrued interest                                                                                              131,790                97,019
Deferred revenues                                                                                             457,116                353,005
Other accrued liabilities                                                                                     357,646                221,066
Current maturities of debt and other obligations                                                              115,251                101,749
Total current liabilities                                                                                     1,292,082              961,355
Debt and other long-term obligations                                                                          16,044,369             12,069,393
Other long-term liabilities                                                                                   2,554,037              2,087,229
Total liabilities                                                                                             19,890,488             15,117,977
Commitments and contingencies
CCIC stockholders’ equity:
Common stock, $0.01 par value; 600,000,000 shares authorized; shares issued and outstanding: December 31,     4,063                  3,605
2017--406,280,673 and December 31, 2016--360,536,659
6.875% Mandatory Convertible Preferred Stock, Series A, $0.01 par value; 20,000,000 shares authorized; shares 17                     --
issued and outstanding: December 31, 2017--1,649,998 and December 31, 2016--0; aggregate liquidation value:
December 31, 2017--$1,649,998 and December 31, 2016--$0
Additional paid-in capital                                                                                    16,843,607             10,938,236
Accumulated other comprehensive income (loss)                                                                 (3,989           )     (5,888           )
Dividends/distributions in excess of earnings                                                                 (4,504,616       )     (3,378,838       )
Total equity                                                                                                  12,339,082             7,557,115
Total liabilities and equity                                                                                  $     32,229,570       $     22,675,092
 CROWN CASTLE INTERNATIONAL CORP.
 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
 (in thousands, except share and per share amounts)
                                                                              Three Months Ended                  Twelve Months Ended
                                                                              December 31,                        December 31,
                                                                              2017               2016             2017               2016
Net revenues:
Site rental                                                                   $    1,050,686     $    817,381     $    3,669,191     $    3,233,307
Network services and other                                                    187,404            215,035          686,414            687,918
Net revenues                                                                  1,238,090          1,032,416        4,355,605          3,921,225
Operating expenses:
Costs of operations (exclusive of depreciation, amortization and accretion):
Site rental                                                                   328,945            261,127          1,143,914          1,023,350
Network services and other                                                    109,650            131,105          419,787            417,171
General and administrative                                                    127,466            92,122           426,698            371,031
Asset write-down charges                                                      7,038              6,202            17,322             34,453
Acquisition and integration costs                                             34,351             5,994            61,431             17,453
Depreciation, amortization and accretion                                      362,211            273,826          1,242,408          1,108,551
Total operating expenses                                                      969,661            770,376          3,311,560          2,972,009
Operating income (loss)                                                       268,429            262,040          1,044,045          949,216
Interest expense and amortization of deferred financing costs                 (160,280       )   (129,376     )   (590,682       )   (515,032       )
Gains (losses) on retirement of long-term obligations                         --                 --               (3,525         )   (52,291        )
Interest income                                                               6,176              342              18,761             796
Other income (expense)                                                        (1,468         )   (4,212       )   1,994              (8,835         )
Income (loss) from continuing operations before income taxes                  112,857            128,794          470,593            373,854
Benefit (provision) for income taxes                                          (14,753        )   (4,084       )   (26,043        )   (16,881        )
Net income (loss)                                                             98,104             124,710          444,550            356,973
Dividends on preferred stock                                                  (28,359        )   --               (58,294        )   (32,991        )
Net income (loss) attributable to CCIC common stockholders                    $    69,745        $    124,710     $    386,256       $    323,982
Net income (loss) attributable to CCIC common stockholders, per common share:
Net income (loss) attributable to CCIC common stockholders, basic             $    0.17          $    0.35        $    1.01          $    0.95
Net income (loss) attributable to CCIC common stockholders, diluted           $    0.17          $    0.35        $    1.01          $    0.95
Weighted-average common shares outstanding (in thousands):
Basic                                                                         406,278            352,116          381,740            340,349
Diluted                                                                       408,130            352,878          383,221            340,879
 CROWN CASTLE INTERNATIONAL CORP.
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
 (in thousands)
                                                                                                    Twelve Months Ended December 31,
                                                                                                    2017                2016
Cash flows from operating activities:
Net income (loss)                                                                                   $     444,550       $     356,973
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation, amortization and accretion                                                            1,242,408           1,108,551
(Gains) losses on retirement of long-term obligations                                               3,525               52,291
Amortization of deferred financing costs and other non-cash interest                                9,368               14,333
Stock-based compensation expense                                                                    91,647              79,338
Asset write-down charges                                                                            17,322              34,453
Deferred income tax (benefit) provision                                                             14,888              8,603
Other non-cash adjustments, net                                                                     (1,320        )     5,059
Changes in assets and liabilities, excluding the effects of acquisitions:
Increase (decrease) in liabilities                                                                  176,226             236,642
Decrease (increase) in assets                                                                       45,572              (113,979      )
Net cash provided by (used for) operating activities                                                2,044,186           1,782,264
Cash flows from investing activities:
Payments for acquisition of businesses, net of cash acquired                                        (9,260,135    )     (556,854      )
Capital expenditures                                                                                (1,228,071    )     (873,883      )
Net (payments) receipts from settled swaps                                                          (328          )     8,141
Other investing activities, net                                                                     (5,487        )     12,364
Net cash provided by (used for) investing activities                                                (10,494,021   )     (1,410,232    )
Cash flows from financing activities:
Proceeds from issuance of long-term debt                                                            3,092,323           5,201,010
Principal payments on debt and other long-term obligations                                          (118,880      )     (95,787       )
Purchases and redemptions of long-term debt                                                         --                  (4,044,834    )
Borrowings under revolving credit facility                                                          2,820,000           3,440,000
Payments under revolving credit facility                                                            (1,840,000    )     (4,565,000    )
Payments for financing costs                                                                        (29,240       )     (41,533       )
Net proceeds from issuance of common stock                                                          4,221,329           1,325,865
Net proceeds from issuance of preferred stock                                                       1,607,759           --
Purchases of capital stock                                                                          (23,307       )     (24,936       )
Dividends/distributions paid on common stock                                                        (1,508,705    )     (1,239,158    )
Dividends paid on preferred stock                                                                   (29,935       )     (43,988       )
Net (increase) decrease in restricted cash                                                          3,808               (7,931        )
Net cash provided by (used for) financing activities                                                8,195,152           (96,292       )
Net increase (decrease) in cash and cash equivalents - continuing operations                        (254,683      )     275,740
Discontinued operations:
Net cash provided by (used for) investing activities                                                --                  113,150
Net increase (decrease) in cash and cash equivalents - discontinued operations                      --                  113,150
Effect of exchange rate changes                                                                     1,178               (101          )
Cash and cash equivalents at beginning of period                                                    567,599             178,810
Cash and cash equivalents at end of period                                                          $     314,094       $     567,599
Supplemental disclosure of cash flow information:
Interest paid                                                                                       546,543             470,655
Income taxes paid                                                                                   16,427              13,821
 CROWN CASTLE INTERNATIONAL CORP.
 SEGMENT OPERATING RESULTS (UNAUDITED)
 (in thousands)
SEGMENT OPERATING RESULTS
                                                                                                     Three Months Ended December 31, 2017                                                                                                   Three Months Ended December 31, 2016
                                                                                                     Towers                                Fiber                                 Other                Consolidated                          Towers                                Fiber                                 Other                Consolidated
                                                                                                                                                                                                      Total                                                                                                                                  Total
Segment site rental revenues                                                                         $                 740,560             $                 310,126                                  $                 1,050,686           $                 712,549             $                 104,832                                  $                 817,381
Segment network services and other revenue                                                           175,939                               11,465                                                     187,404                               169,647                               45,388                                                     215,035
Segment revenues                                                                                     916,499                               321,591                                                    1,238,090                             882,196                               150,220                                                    1,032,416
Segment site rental cost of operations                                                               212,090                               105,633                                                    317,723                               214,878                               38,057                                                     252,935
Segment network services and other cost of operations                                                98,516                                9,613                                                      108,129                               95,289                                34,207                                                     129,496
Segment cost of operations                                                                           310,606                               115,246                                                    425,852                               310,167                               72,264                                                     382,431
Segment site rental gross margin                                                                     528,470                               204,493                                                    732,963                               497,671                               66,775                                                     564,446
Segment network services and other gross margin                                                      77,423                                1,852                                                      79,275                                74,358                                11,181                                                     85,539
Segment general and administrative expenses                                                          24,537                                34,278                                46,411               105,226                               24,574                                14,956                                35,838               75,368
Segment operating profit                                                                             581,356                               172,067                               (46,411           )  707,012                               547,455                               63,000                                (35,838           )  574,617
Stock-based compensation expense                                                                                                                                                 29,976               29,976                                                                                                            21,241               21,241
Depreciation, amortization and accretion                                                                                                                                         362,211              362,211                                                                                                           273,826              273,826
Interest expense and amortization of deferred financing costs                                                                                                                    160,280              160,280                                                                                                           129,376              129,376
Other income (expenses) to reconcile to income (loss) from continuing operations before income taxes                                                                             41,688               41,688                                                                                                            21,380               21,380
Income (loss) from continuing operations before income taxes                                                                                                                                          $                 112,857                                                                                                              $                 128,794
(a)  Segment cost of operations excludes (1) stock-based compensation expense of $7.7 million and $4.5 million for the three months ended December 31, 2017 and 2016, respectively and (2) prepaid lease purchase price adjustments of $5.0 million and $5.3 million for the three months ended December 31, 2017 and 2016, respectively.  Segment general and administrative expenses exclude stock-based compensation expense of $22.3 million and $16.8 million for the three months ended December 31, 2017 and 2016, respectively.
(b)  See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of segment site rental gross margin, segment network services and other gross margin and segment operating profit.
(c)  See condensed consolidated statement of operations for further information.
SEGMENT OPERATING RESULTS
                                                                                                     Twelve Months Ended December 31, 2017                                                                                                  Twelve Months Ended December 31, 2016
                                                                                                     Towers                                Fiber                                 Other                Consolidated                          Towers                                Fiber                                 Other                Consolidated
                                                                                                                                                                                                      Total                                                                                                                                  Total
Segment site rental revenues                                                                         $                 2,899,554           $                 769,637                                  $                 3,669,191           $                 2,830,708           $                 402,599                                  $                 3,233,307
Segment network services and other revenue                                                           636,532                               49,882                                                     686,414                               603,689                               84,229                                                     687,918
Segment revenues                                                                                     3,536,086                             819,519                                                    4,355,605                             3,434,397                             486,828                                                    3,921,225
Segment site rental cost of operations                                                               844,795                               264,059                                                    1,108,854                             840,209                               147,459                                                    987,668
Segment network services and other cost of operations                                                374,134                               40,691                                                     414,825                               344,595                               64,859                                                     409,454
Segment cost of operations                                                                           1,218,929                             304,750                                                    1,523,679                             1,184,804                             212,318                                                    1,397,122
Segment site rental gross margin                                                                     2,054,759                             505,578                                                    2,560,337                             1,990,499                             255,140                                                    2,245,639
Segment network services and other gross margin                                                      262,398                               9,191                                                      271,589                               259,094                               19,370                                                     278,464
Segment general and administrative expenses                                                          93,662                                89,048                                167,455              350,165                               92,903                                60,676                                143,001              296,580
Segment operating profit                                                                             2,223,495                             425,721                               (167,455          )  2,481,761                             2,156,690                             213,834                               (143,001          )  2,227,523
Stock-based compensation expense                                                                                                                                                 96,435               96,435                                                                                                            96,538               96,538
Depreciation, amortization and accretion                                                                                                                                         1,242,408            1,242,408                                                                                                         1,108,551            1,108,551
Interest expense and amortization of deferred financing costs                                                                                                                    590,682              590,682                                                                                                           515,032              515,032
Other income (expenses) to reconcile to income (loss) from continuing operations before income taxes                                                                             81,643               81,643                                                                                                            133,548              133,548
Income (loss) from continuing operations before income taxes                                                                                                                                          $                 470,593                                                                                                              $                 373,854
(a)  Segment cost of operations excludes (1) stock-based compensation expense of $19.9 million and $22.1 million for the twelve months ended December 31, 2017 and 2016, respectively and (2) prepaid lease purchase price adjustments of $20.1 million and $21.3 million for the twelve months ended December 31, 2017 and 2016, respectively.  Segment general and administrative expenses exclude stock-based compensation expense of $76.5 million and $74.5 million for the twelve months ended December 31, 2017 and 2016, respectively.
(b)  See "Non-GAAP Financial Measures, Segment Measures and Other Calculations" herein for a discussion of our definitions of segment site rental gross margin, segment network services and other gross margin and segment operating profit.
(c)  See condensed consolidated statement of operations for further information.

Contacts:

Dan Schlanger, CFO

Ben Lowe, VP Corporate Finance

Crown Castle International Corp.

713-570-3050

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