Radius Global Infrastructure Reports First Quarter 2021 Results
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.
- 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.
- 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
FINANCIAL RESULTS
Revenue increased
Gross Profit increased
Annualized In Place Rents increased to
Investments in Real Property Interests and Related Intangible Assets, as identified in the Company’s Consolidated Statements of Cash Flows, was
Acquisition Capex deployed by the Company was
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
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
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
|
|
|
Period from
|
|
|
|
Period from
|
|
|||
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,
|
|
|
December 31,
|
|
||
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, |
|
|
— |
|
|
|
— |
|
Series B Founder Preferred Stock, |
|
|
— |
|
|
|
— |
|
Class A Common Stock, |
|
|
— |
|
|
|
— |
|
Class B Common Stock, |
|
|
— |
|
|
|
— |
|
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
|
|
|
Period from
|
|
|
|
Period from
|
|
|||
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:RADIRADI RankingsRADI Latest NewsRADI Stock Data
1.50B
69.76M
8.69%
103.07%
11.27%
Telecom Services
Communication Services
United States
Bala Cynwyd
|