The Crown Castle First Quarter 2024 Earnings Call has begun, with participants in listen-only mode. After the presentation, there will be a Q&A session. The call is being recorded and the Vice President of Corporate Finance and Treasurer, Kris Hinson, is leading the call. Other participants include the Board Chair, the recently appointed President and CEO, the former Interim President and CEO, and the Chief Financial Officer. Forward-looking statements will be discussed and non-GAAP financial measures will be used. The call is taking place on April 17, 2024 and the company assumes no obligation to update any statements. The Board Chair welcomes the new CEO, Steven Moskowitz.

The CEO search committee and full board have been actively searching for a new leader and have unanimously chosen Steven, a 25-year industry veteran with strong operating experience in the tower industry and prior CEO experience. He has a proven track record of strategic capital allocation and value creation, and has successfully led companies such as American Tower, NextG Networks, and Centennial Towers. His experience and capabilities in operational efficiency, process improvement, and building strong leadership teams make him an ideal fit for Crown Castle. His leadership is expected to drive the company's strategic and operating plans and create value for shareholders, customers, and employees.

The speaker thanks Tony Melone for his leadership as Interim CEO and introduces Steven as the new CEO. An update is given on the Fiber Review process, which confirmed the company's valuable assets and is now exploring potential transaction opportunities with interested parties.

The company is excited to have Steven on board to help with their strategic alternatives and operational review. They have concluded their work with external consultants and have identified opportunities for operational improvement in both their enterprise fiber and small-cell businesses. Steven will work with the board and executive team to develop a revised operating plan and will share it with investors when appropriate. The board is pleased with the progress made and believes Steven is the best person to lead the company through the next stages of their Fiber Review. They thank the employees for their dedication and turn the call over to Steven.

The speaker is excited about leading Crown Castle and getting to know the team. They have a simple formula for leadership success, which includes developing a clear strategy, having a great team, maintaining a customer service-driven culture, and focusing on long-term value creation. They have experience as a competitor of Crown Castle and believe the company has the potential to be best-in-class. They are also optimistic about the future of communications infrastructure and believe the U.S. market is the best place to do business.

The incoming CEO of Crown Castle is excited about the company's potential for growth and is prioritizing a strategic review to maximize shareholder value. He plans to work with the board and employees to enhance customer relationships, manage cash wisely, and improve efficiency. This process will take time, but he is confident that together they can create solutions to refresh and reengineer the company, leading to improved performance and a stronger position in the market. The current Interim CEO is also praised for his commitment to the company.

The article discusses the first quarter results of Crown Castle, a telecommunications infrastructure company. The company has appointed a new CEO, Steven, who will take over in the next month. The company's first quarter results were in line with expectations, with 5% organic growth. However, this was offset by a $50 million reduction in site rental revenues due to Sprint Cancellations, a $54 million reduction in non-cash items, and a $26 million decrease in services margin contribution. The company remains on track for its full year outlook and looks forward to providing more details on its strategic initiatives in the second quarter earnings call.

The company's full year outlook remains unchanged, with a decrease in site rental revenues, adjusted EBITDA, and AFFO due to non-cash and one-time items. The expected organic contribution to site rental billings remains unchanged, with 2% consolidated organic growth and 5% growth excluding the impact of Sprint Cancellations. The company has strengthened its balance sheet and has ample liquidity to fund its business. The 2024 outlook for discretionary capital remains unchanged. The company has made good progress on its strategic and operating review of its fiber business and has successfully concluded its CEO search.

The speaker welcomes Steven to Crown Castle and expresses excitement about working together to enhance value for shareholders. They mention engaging with multiple parties, potentially for both fiber solutions and small cells. They are open to different transaction structures to maximize shareholder value. The speaker also mentions learning from shareholders and the fiber strategic review, and expresses a willingness to consider different strategies and asset mixes in the future.

The speaker discusses the positive support received from shareholders regarding the strategic review of the fiber business. They mention that opinions have varied, but all shareholders are excited about the steps being taken to unlock shareholder value. When asked about timing, the speaker states that they are working hard and dedicated to performing for shareholders, but cannot give a specific date for completion. The speaker also mentions that they are open to options such as selling a partial stake in fiber solutions or small cells to maximize shareholder value.

The speaker, Jonathan, asks two questions about the potential transaction and the second half momentum for the core tower business. Robert Bartolo responds that they are open to any form of transaction that maximizes shareholder value, including a JV structure. Tony Melone adds that they have grown tower revenue and expect second half activity to be higher, but nothing outside of the previously guided range. Jonathan asks about cost cutting and Dan Schlanger responds that they announced office consolidation and a reduction in their tower force last year.

The speaker discusses the company's realization of cost savings and how they have been incorporated into their income statement. They also mention the potential for additional cost savings and the role of their new employee, Steven, in optimizing the business. The speaker then addresses a question about the company's dividend, stating that it is an important aspect for both the board and investors and that they believe their balance sheet can support it.

During the strategic review, the company will have to consider the impact on the dividend, which is an important part of the company's capital and philosophy. The separation of the small cell business from the fiber solutions business is possible and will be explored further. The company expects the first half of the year to be the low point in FFO per share and there has been customer activity across all segments, with carriers moving towards densification for 5G and completing upgrades to mid-band 5G on sites that have not been upgraded yet.

The speaker believes that the first half of 2024 will be the low point for AFFO per share, but they expect it to grow throughout the remainder of the year. They are pleased with the results for the first quarter but do not see anything that would change their previous guidance. The speaker also reiterates the potential for continued densification of 5G networks, which could benefit Crown and their tower portfolio. They also mention that they have line of sight on 16,000 small cell sites for 2024, with a back-end loaded schedule. The next speaker congratulates Steven on his new role.

During a conference call, Rob and Steven discussed the potential for cost efficiency in the fiber segment of the business, with Steven noting that there may also be opportunities for operational efficiency in the tower segment. Steven plans to brainstorm with employees and develop an improvement plan, but it is too early to say anything concrete. There may also be changes in how the segments are run.

The speaker is asking about the new COO's role and if there have been any benefits from giving them full P&L responsibility. The COO says they are still learning and their focus is on having a strong team and implementing a simple strategy. The analyst asks about the order of importance between the new CEO and strategy, and the new COO says they have agency in constructing the strategy. The analyst also asks about the CFO's role.

During the earnings call, an analyst asked about the impact of a non-big three renewal on the straight line revenue EBITDA. Steven Moskowitz, a member of the board, answered that his involvement in the company's future strategy is crucial and he has good chemistry with the team. Another analyst, Daniel Schlanger, was unsure how to answer the question as there was no new contract or extension that significantly impacted straight line revenue.

During the earnings call, a question was raised about the decrease in contract renewable contract revenues from $230 million to $180 million in the first quarter. The speaker clarified that nothing had been pushed out or renewed in the quarter and offered to follow up with anyone who had further questions. Another participant asked about the simultaneous processes of selling all or part of the company and conducting an efficiency review. The speaker explained that the sale process was ongoing and the operational review had concluded, with the results being passed on to the new CEO. There were no changes to report in the ongoing services business.

The company believes that the services and contribution to margin will remain consistent throughout the year. There has been no significant change in customer behavior or carrier activity on the tower side, and the company has good line of sight on bookings for small cells and fiber solutions. There has been no material change in pacing within the quarter. The company has not seen any significant change in the percentage of towers upgraded with 5G equipment and there is no evidence of carrier activity to support fixed wireless.

The analyst asks about the discretionary CapEx and if it will be affected by the ongoing strategic review. Tony Melone provides an update on 5G and carrier activity on fixed wireless. Daniel Schlanger states that long term commitments will be honored and the company's outlook for 2024 remains unchanged. Brendan Lynch congratulates Steven on his new role and asks another question about the strategic review.

The speaker, Robert Bartolo, is asked about the company's strategic review and potential plans for the fiber and small cell business. He clarifies that the review is only focused on the fiber business and they are not currently considering future plans for the remaining business. Another question is asked about the potential impact of the current rate environment on carrier spending, to which Tony Melone responds that the carriers are primarily driven by capacity and service needs. The last question is about the tower business and the speaker notes that their first quarter results were in line with guidance.

The speaker asks about the company's leasing levels and whether they will reaccelerate to meet long term growth guidance. The CEO reiterates the need for more spectrum or densification to cover 5G speeds and believes that densification efforts will pick up in the future. The COO mentions the typical phases of builds in the industry and states that they are currently in a pause before a reacceleration phase. The CEO adds that he is optimistic about the company's shared infrastructure model.

Tony Melone expresses his appreciation for the Crown Castle team and announces the addition of Steven Moskowitz to the team. Moskowitz's skills and experience will help take advantage of the growing demand for communications infrastructure. Melone will stay engaged on the board. The conference has now concluded.

This summary was generated with AI and may contain some inaccuracies.