Radius Global Infrastructure Reports First Quarter 2021 Results

Rhea-AI Summary

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			{ "@context": "https://schema.org", "@type": "FAQPage", "name": "Radius Global Infrastructure Reports First Quarter 2021 Results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were Radius Global Infrastructure's Q1 2021 revenue and profit figures?", "acceptedAnswer": { "@type": "Answer", "text": "In Q1 2021, Radius Global Infrastructure reported revenue of $22.2 million and a gross profit of $21.9 million." } }, { "@type": "Question", "name": "How much did Annualized In Place Rents increase for Radius Global Infrastructure in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Annualized In Place Rents increased by 49% to over $90 million as of March 31, 2021." } }, { "@type": "Question", "name": "What significant financing transactions occurred for Radius Global Infrastructure in April 2021?", "acceptedAnswer": { "@type": "Answer", "text": "In April 2021, Radius issued $75 million in junior secured debt and also completed a PIPE offering." } }, { "@type": "Question", "name": "What was the amount invested in real property interests by Radius Global Infrastructure in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Radius Global Infrastructure invested $104.7 million in real property interests for Q1 2021, marking a 385% increase compared to the previous year." } }, { "@type": "Question", "name": "How many shares were issued in the PIPE offering by Radius Global Infrastructure?", "acceptedAnswer": { "@type": "Answer", "text": "Radius Global Infrastructure agreed to issue 14,336,918 shares of Class A common stock in the PIPE offering." } } ] } 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 RADI Rankings N/A Ranked by Market Cap N/A Ranked by Dividends RADI Latest News Sep 21, 2023 EQT and PSP complete acquisition of Radius Global Infrastructure Aug 9, 2023 Radius Global Infrastructure Reports Second Quarter 2023 Results May 9, 2023 Radius Global Infrastructure Reports First Quarter 2023 Results Apr 21, 2023 Radius Global Infrastructure Announces First Quarter 2023 Earnings Release Date Mar 1, 2023 EQT Active Core Infrastructure announces first investment to acquire Radius Global Infrastructure RADI Stock Data Market Cap 1.50B Float 80.22M Insiders Ownership 8.69% Institutions Ownership 103.07% Short Percent 11.27% Industry Telecom Services Sector Communication Services Website Link Country United States City Bala Cynwyd Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit Google News © 2020-2024 StockTitan.net