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Radius Global Infrastructure Reports First Quarter 2021 Results

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Radius Global Infrastructure, Inc. (NASDAQ: RADI) reported a strong performance for the first quarter of 2021, with revenue increasing by 42% to $22.2 million compared to $15.6 million in Q1 2020. Gross profit also rose 41% to $21.9 million, maintaining a gross profit margin of approximately 99%. Annualized In Place Rents increased by 49% to over $90 million. The company invested $104.7 million in real property interests, a significant increase of 385% year-over-year. Recent financing included a $75 million junior secured debt issuance and a PIPE offering for 14.3 million shares at $13.95 each.

Positive
  • Revenue increased 42% to $22.2 million.
  • Gross profit increased 41% to $21.9 million, with a 99% gross profit margin.
  • Annualized In Place Rents rose 49% to over $90 million.
  • Investment in real property interests surged 385% to $104.7 million.
  • PIPE offering of 14.3 million shares at $13.95 each supports further growth.
Negative
  • None.

Radius Global Infrastructure, Inc. (NASDAQ: RADI) (“Radius” or the “Company”), one of the largest global owners and acquirors of real property interests and contractual rights underlying essential telecommunications digital infrastructure in 19 countries, today reported results for the first quarter of 2021.

“We are very pleased to announce another quarterly result of strong revenue, gross profit and portfolio growth, adding to the significant capital deployment achieved in the fourth quarter of 2020. In Q1 2021, we increased revenue by 42% over the 2020 first quarter, bringing our Annualized In Place Rents to over $90 million. We are excited to continue adding to the powerful scale of these stable cash flow streams underlying essential telecom digital infrastructure leases,” commented Bill Berkman, Co-Chairman and Chief Executive Officer.

FINANCIAL RESULTS

Revenue increased 42% to $22.2 million for the three months ended March 31, 2021 compared to revenue of $15.6 million for the three months ended March 31, 2020.

Gross Profit increased 41% to $21.9 million Q1 2021 compared to gross profit of $15.5 million in the corresponding 2020 three-month period, while maintain a gross profit margin of approximately 99%.

Annualized In Place Rents increased to $90.6 million as of March 31, 2021, an increase of $29.8 million or 49% over the March 31, 2020 Annualized In Place Rents of $60.8 million.

Investments in Real Property Interests and Related Intangible Assets, as identified in the Company’s Consolidated Statements of Cash Flows, was $104.7 million and $21.6 million for the three months ended March 31, 2021 and 2020 respectively, an increase of $83.1 million, or 385%, for the quarter ended March 31, 2021 over the quarter ended March 31, 2020.

Acquisition Capex deployed by the Company was $107.8 million and $28.4 million for the quarter ended March 31, 2021 and 2020 respectively, an increase of $79.4 million or 280% for the quarter ended March 31, 2021 over the quarter ended March 31, 2020.

We refer you to the GAAP financial disclosure and reconciliations to non-GAAP financial measurement set forth below and in the Company’s Form 10-Q for the quarter ended March 31, 2021. The Company pays for its acquisitions of real property interests either with a one-time payment at the time of acquisition or, under certain circumstances, with a combination of upfront payments and future contractually committed payments over a period of time, in each case pursuant to the individual acquisition agreement. In our Consolidated Statements of Cash Flows, the one-time and upfront cash payments are reported as Investments in Real Property Interests and Related Intangible Assets. The total cash spent and the commitment for future payments in any given period for the acquisition of real property interests adjusted for changes in foreign currency is our Acquisition Capex. Acquisition Capex is a non-GAAP metric, albeit one the Company believes is valuable to readers of the Company’s financial statements. Please refer to the table below for a full reconciliation of Acquisition Capex.

2021 FINANCING TRANSACTIONS

On April 15, 2021, the Company issued $75 million junior secured debt on its domestic rental streams at 98.25, with a 6% cash pay interest only that matures in April 2023. Additionally, the Company added approximately $94 million of USD equivalents in February 2021 with the issuance of eight year, fixed and floating rate, interest-only global secured notes under an existing debt facility. The global secured debt was issued in 77 million euros at a cash coupon rate of 3.9%, with 1.75% of interest paid in kind.

On May 11, 2021, the Company agreed to issue 14,336,918 shares of Class A common stock in a private offering (PIPE) with various investors. The purchasers of the shares of Class A Common Stock will be entitled to registration rights, including the Company’s obligation to file a registration statement with the SEC with respect to such shares no later than June 11, 2021. The price of the Class A common stock issued in this transaction, which is expected to close on or about May 14, 2021, was $13.95 per share, representing the volume weighted average price (VWAP) for the 5-day trading period ending on May 11, 2021 of $14.68 per share, less a 5% discount.

The proceeds of all financing transactions (debt and equity) will be used to fund continued growth. Goldman Sachs & Co. LLC acted as placement agent for the Company in connection with the PIPE transaction.

Attachment: Financial statement tables and non-GAAP reconciliations

WEBCAST AND CONFERENCE CALL INFORMATION

Management will host a webcast and conference call on Wednesday, May 12, 2021 at 8:30 A.M. Eastern Time to review the Company’s first quarter financial results, discuss recent events and conduct a question-and-answer session.

The live webcast and presentation slides will be available through the “News & Events” section of the Company’s website, https://www.radiusglobal.com/news-events/events-presentations. Participants are advised to go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-877-407-0789 or 1-201-689-8562, respectively. Upon dialing in, please request to join the Radius Global Infrastructure First Quarter 2021 Earnings Conference Call.

A replay of the webcast and access to the presentation slides will be available on the Company’s website until Wednesday, May 26, 2021, at https://www.radiusglobal.com/news-events/events-presentations.

About the Company

Radius Global Infrastructure, Inc., through its subsidiary AP WIP Investments, LLC ("APW"), is a multinational owner of a growing, diversified portfolio of primarily triple net rental streams from wireless operators and tower companies for properties underlying their mission critical digital infrastructure. APW's proven lease origination engine drives attractive yields on capital invested and maintains a broad pipeline of acquisition opportunities.

For further information see https://www.radiusglobal.com.

FORWARD-LOOKING STATEMENTS AND DISCLAIMERS

Certain matters discussed in this press release, including the attachments, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are subject to risks and uncertainties. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, their negative or other variations or comparable terminology.

Forward-looking statements are subject to significant risks and uncertainties and are based on beliefs, assumptions and expectations based upon our historical performance and on our current plans, estimates and expectations in light of information available to us. Any forward-looking statement speaks only as of the date on which it is made. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Actual results may differ materially from those set forth in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Certain important factors that we think could cause our actual results to differ materially from those expressed in or contemplated by the forward-looking statements are summarized below, including the ongoing impact of the current outbreak of COVID-19 on the U.S., regional and global economies, the U.S. sustainable infrastructure market and the broader financial markets. The current outbreak of COVID-19 has also impacted, and is likely to continue to impact, directly or indirectly, many of the other important factors below and the risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “Annual Report”) and in our subsequent filings under the Exchange Act. Other factors besides those listed could also adversely affect us. We operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. In particular, it is difficult to fully assess the impact of COVID-19 at this time due to, among other factors, uncertainty regarding the severity and duration of the outbreak domestically and internationally, uncertainty regarding the effectiveness of federal, state and local governments’ efforts to contain the spread of COVID-19 and respond to its direct and indirect impact on the U.S. economy and economic activity, including the timing of the successful distribution of an effective vaccine.

Important factors that could cause our actual results to differ materially from those expressed in or contemplated by the forward-looking statements include, but are not limited to, the extent to which wireless carriers or tower companies consolidate their operations, exit the wireless communications business or share site infrastructure to a significant degree; the extent to which new technologies reduce demand for wireless infrastructure; competition for assets; whether the tenant leases for the wireless communication tower or antennae located on our real property interests are renewed with similar rates or at all; the extent of unexpected lease cancellations, given that substantially all of the tenant leases associated with our assets may be terminated upon limited notice by the wireless carrier or tower company and unexpected lease cancellations could materially impact cash flow from operations; economic, political, cultural and other risks to our operations outside the U.S., including risks associated with fluctuations in foreign currency exchange rates and local inflation rates; any regulatory uncertainty; the extent to which we continue to grow at an accelerated rate, which may prevent us from achieving profitability or positive cash flow at a company level (as determined in accordance with GAAP) for the foreseeable future; the fact that we have incurred a significant amount of debt and may in the future incur additional indebtedness; the extent to which the terms of our debt agreements limit our flexibility in operating our business; and the other factors, risks and uncertainties described in the Annual Report.

RADIUS GLOBAL INFRASTRUCTURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in thousands, except share and per share amounts)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
March 31,
2021

 

 

Period from
February 10,
2020 to
March 31,
2020

 

 

 

Period from
January 1,
2020 to
February 9,
2020

 

Revenue

 

$

22,172

 

 

$

8,755

 

 

 

$

6,836

 

Cost of service

 

 

295

 

 

 

71

 

 

 

 

34

 

Gross profit

 

 

21,877

 

 

 

8,684

 

 

 

 

6,802

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

15,389

 

 

 

8,667

 

 

 

 

4,344

 

Share-based compensation

 

 

4,103

 

 

 

71,363

 

 

 

 

 

Amortization and depreciation

 

 

14,080

 

 

 

7,115

 

 

 

 

2,584

 

Impairment - decommissions

 

 

687

 

 

 

521

 

 

 

 

530

 

Total operating expenses

 

 

34,259

 

 

 

87,666

 

 

 

 

7,458

 

Operating loss

 

 

(12,382

)

 

 

(78,982

)

 

 

 

(656

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gain on foreign currency debt

 

 

14,607

 

 

 

4,269

 

 

 

 

11,500

 

Interest expense, net

 

 

(8,987

)

 

 

(3,534

)

 

 

 

(3,623

)

Other income (expense), net

 

 

(2,145

)

 

 

153

 

 

 

 

(277

)

Total other income (expense), net

 

 

3,475

 

 

 

888

 

 

 

 

7,600

 

Income (loss) before income tax expense

 

 

(8,907

)

 

 

(78,094

)

 

 

 

6,944

 

Income tax expense (benefit)

 

 

(722

)

 

 

987

 

 

 

 

767

 

Net income (loss)

 

 

(8,185

)

 

 

(79,081

)

 

 

$

6,177

 

Net loss attributable to noncontrolling interest

 

 

(606

)

 

 

(771

)

 

 

 

 

 

Net loss attributable to stockholders

 

 

(7,579

)

 

 

(78,310

)

 

 

 

 

 

Stock dividend payment to holders of Series A Founders Preferred Stock

 

 

(31,391

)

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(38,970

)

 

$

(78,310

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.66

)

 

$

(1.34

)

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

59,479,707

 

 

 

58,425,000

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements

RADIUS GLOBAL INFRASTRUCTURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

March 31,
2021

 

 

December 31,
2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

86,977

 

 

$

99,896

 

Restricted cash

 

 

1,916

 

 

 

1,614

 

Trade receivables, net

 

 

7,814

 

 

 

7,829

 

Prepaid expenses and other current assets

 

 

19,138

 

 

 

17,352

 

Total current assets

 

 

115,845

 

 

 

126,691

 

Real property interests, net:

 

 

 

 

 

 

 

 

Right-of-use assets - finance leases, net

 

 

255,310

 

 

 

237,862

 

Telecom real property interests, net

 

 

913,320

 

 

 

851,529

 

Real property interests, net

 

 

1,168,630

 

 

 

1,089,391

 

Intangible assets, net

 

 

6,293

 

 

 

5,880

 

Property and equipment, net

 

 

1,478

 

 

 

1,382

 

Goodwill

 

 

80,509

 

 

 

80,509

 

Deferred tax asset

 

 

1,135

 

 

 

1,173

 

Restricted cash, long-term

 

 

107,841

 

 

 

113,938

 

Other long-term assets

 

 

8,726

 

 

 

9,266

 

Total assets

 

$

1,490,457

 

 

$

1,428,230

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

34,654

 

 

$

30,854

 

Rent received in advance

 

 

23,276

 

 

 

19,587

 

Finance lease liabilities, current

 

 

10,420

 

 

 

9,920

 

Telecom real property interest liabilities, current

 

 

5,011

 

 

 

5,749

 

Total current liabilities

 

 

73,361

 

 

 

66,110

 

Finance lease liabilities

 

 

22,996

 

 

 

23,925

 

Telecom real property interest liabilities

 

 

11,523

 

 

 

11,813

 

Long-term debt, net of debt discount and deferred financing costs

 

 

805,332

 

 

 

728,473

 

Deferred tax liability

 

 

55,000

 

 

 

57,137

 

Other long-term liabilities

 

 

8,561

 

 

 

8,704

 

Total liabilities

 

 

976,773

 

 

 

896,162

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Series A Founder Preferred Stock, $0.0001 par value; 1,600,000 shares authorized; 1,600,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Series B Founder Preferred Stock, $0.0001 par value; 1,386,033 shares authorized; 1,386,033 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Class A Common Stock, $0.0001 par value; 1,590,000,000 shares authorized; 61,212,042 and 58,425,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Class B Common Stock, $0.0001 par value; 200,000,000 shares authorized; 11,611,769 and 11,414,030 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

678,058

 

 

 

673,955

 

Accumulated other comprehensive income

 

 

1,466

 

 

 

15,768

 

Accumulated deficit

 

 

(220,816

)

 

 

(213,237

)

Total stockholders’ equity attributable to Radius Global Infrastructure, Inc.

 

 

458,708

 

 

 

476,486

 

Noncontrolling interest

 

 

54,976

 

 

 

55,582

 

Total liabilities and stockholders’ equity

 

$

1,490,457

 

 

$

1,428,230

 

 

See accompanying notes to condensed consolidated financial statements.

RADIUS GLOBAL INFRASTRUCTURE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands, except share and per share amounts)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
March 31,
2021

 

 

Period from
February 10,
2020 to
March 31,
2020

 

 

 

Period from
January 1,
2020 to
February 9,
2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(8,185

)

 

$

(79,081

)

 

 

$

6,177

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization and depreciation

 

 

14,080

 

 

 

7,115

 

 

 

 

2,584

 

Amortization of finance lease and telecom real property interest liabilities discount

 

 

317

 

 

 

177

 

 

 

 

213

 

Impairment – decommissions

 

 

687

 

 

 

521

 

 

 

 

530

 

Realized and unrealized loss (gain) on foreign currency debt

 

 

(14,607

)

 

 

(4,269

)

 

 

 

(11,500

)

Amortization of debt discount and deferred financing costs

 

 

135

 

 

 

10

 

 

 

 

280

 

Provision for bad debt expense

 

 

(45

)

 

 

53

 

 

 

 

26

 

Share-based compensation

 

 

4,103

 

 

 

71,363

 

 

 

 

 

Deferred income taxes

 

 

(1,909

)

 

 

441

 

 

 

 

339

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade receivables, net

 

 

(151

)

 

 

(404

)

 

 

 

(682

)

Prepaid expenses and other assets

 

 

(1,878

)

 

 

(1,464

)

 

 

 

935

 

Accounts payable, accrued expenses and other long-term liabilities

 

 

4,084

 

 

 

(23,432

)

 

 

 

(4,605

)

Rent received in advance

 

 

3,969

 

 

 

36

 

 

 

 

2,251

 

Net cash provided by (used in) operating activities

 

 

600

 

 

 

(28,934

)

 

 

 

(3,452

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid in APW Acquisition, net of cash acquired

 

 

 

 

 

(277,065

)

 

 

 

 

Investments in real property interests and related intangible assets

 

 

(104,684

)

 

 

(16,519

)

 

 

 

(5,064

)

Advances on note receivable

 

 

 

 

 

(2,500

)

 

 

 

(17,500

)

Purchases of property and equipment

 

 

(328

)

 

 

(119

)

 

 

 

(40

)

Net cash used in investing activities

 

 

(105,012

)

 

 

(296,203

)

 

 

 

(22,604

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under loan agreements

 

 

93,940

 

 

 

 

 

 

 

 

Repayments of term loans and other debt

 

 

(54

)

 

 

 

 

 

 

(250

)

Debt issuance costs

 

 

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FAQ

What were Radius Global Infrastructure's Q1 2021 revenue and profit figures?

In Q1 2021, Radius Global Infrastructure reported revenue of $22.2 million and a gross profit of $21.9 million.

How much did Annualized In Place Rents increase for Radius Global Infrastructure in Q1 2021?

Annualized In Place Rents increased by 49% to over $90 million as of March 31, 2021.

What significant financing transactions occurred for Radius Global Infrastructure in April 2021?

In April 2021, Radius issued $75 million in junior secured debt and also completed a PIPE offering.

What was the amount invested in real property interests by Radius Global Infrastructure in Q1 2021?

Radius Global Infrastructure invested $104.7 million in real property interests for Q1 2021, marking a 385% increase compared to the previous year.

How many shares were issued in the PIPE offering by Radius Global Infrastructure?

Radius Global Infrastructure agreed to issue 14,336,918 shares of Class A common stock in the PIPE offering.

Radius Global Infrastructure, Inc.

NASDAQ:RADI

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