Radius Global Infrastructure Reports Second Quarter 2023 Results
Revenue Increased
Bill Berkman, Co-Chairman and CEO of Radius Global Infrastructure, commented:
“We generated quarterly Revenue of
RECENTLY ANNOUNCED TRANSACTION
As previously announced on March 1, 2023, Radius entered into a definitive agreement under which EQT Active Core Infrastructure (“EQT”) and the Public Sector Pension Investment Board (“PSP”), through certain of their controlled affiliates, will acquire the Company (the “Merger”). The Company has since obtained all antitrust and direct foreign investment approvals required in connection with the Merger except for one foreign direct investment approval that remains outstanding. The parties still expect the Merger to close in the third quarter of 2023, subject to the conditions set forth in the Merger Agreement, although there can be no assurance that the Merger will occur by that date. On June 15, 2023, the Merger was approved by the Company’s stockholders.
For additional information relating to this pending transaction, please refer to the definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission (the “SEC”) on May 12, 2023 (as amended and supplemented) and other relevant materials that the Company has filed and may file with the SEC in connection with the Merger.
QUARTERLY RESULTS
Revenue increased
Gross Profit rose
Annualized In-Place Rents (“AIPR”) were
YEAR-TO-DATE RESULTS
GAAP Revenue increased
GAAP Gross Profit rose
Investments in Real Property Interests and Related Intangible Assets, as identified in the Company’s Consolidated Statements of Cash Flows, was
Acquisition Capex was
Please refer to the GAAP financial disclosures, reconciliations and comparisons to non-GAAP financial measurements set forth below and in the Company’s Form 10-Q for the quarter ended June 30, 2023.
LIQUIDITY
As of June 30, 2023, Radius had
FINANCING TRANSACTIONS
The summary below presents significant financing activities that have occurred in 2023.
-
In May and June 2023, Radius borrowed
€50 million and€100 million , respectively (an aggregate of in USD equivalent) in floating rate loans under an upsized and amended multi-currency financing facility. The$162 million €50 million borrowing has a cash pay coupon based on the three-month EURIBOR plus3.50% and1.50% payment-in-kind. The€100 million borrowing has a cash pay coupon based on the three-month EURIBOR plus5.00% . Interest on the borrowings is payable quarterly and each loan will mature in November 2028.
-
In July 2023, Radius made two borrowings totaling
€110 million (or in USD equivalent as of the funding date) of the$121 million €1,750 million available under an upsized and amended financing facility that Radius entered into in December 2021. The fixed interest borrowing of€65 million accrues interest at an annual rate of approximately6.4% . The floating rate interest rate loan of€45 million accrues interest based on the three-month EURIBOR plus3.50% . Interest on the borrowings is payable quarterly and each loan will mature in July 2031.
OUTLOOK FOR 2023
As previously noted, the Company is not providing guidance with respect to the outlook for Acquisition Capex in 2023 in light of the pending Merger with EQT and PSP.
About the Company
Radius Global Infrastructure, Inc., through its various subsidiaries, is a multinational owner and acquiror of triple net rental streams and real properties leased to wireless operators, wired operators, wireless tower companies, and other digital infrastructure operators as part of their infrastructure required to deliver a wide range of services.
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, 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, capital expenditures, plans and objectives, macroeconomic conditions and our proposed transaction with certain affiliates of EQT and PSP. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe,” “expect,” “anticipate,” “estimate,” “outlook,” “plan,” “continue,” “intend,” “should,” “may,” “will,” 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 current 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, publicly 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, liquidity and our proposed transaction with certain affiliates of EQT and PSP. 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 expected results are summarized below. Other factors besides those summarized could also adversely affect us. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for management to predict all such risks and uncertainties or how they may affect us. 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.
Important other 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: our proposed transaction with certain affiliates of EQT and PSP may not be completed in a timely manner or at all, including the risk that the last remaining required direct foreign investment approval is not obtained, is delayed or is subject to unanticipated conditions that could adversely affect us or our ability to satisfy the conditions to closing of the Merger; the possibility that any or all of the various conditions to the consummation of the Merger may not be satisfied or waived, , including the failure (a) to receive and the last remaining required direct foreign investment approval (or any conditions, limitations or restrictions placed on such approvals) and (b) to satisfy conditions related to (i) there being no event of default under certain of the Company’s existing debt facilities, (ii) certain waivers of change of control provisions under certain of the debt agreements of the Company and its subsidiaries being in full force and effect at the closing, including the possibility that such waivers fail to be in full force and effect at the closing because any two of William H. Berkman, Scott G. Bruce and Richard I. Goldstein have ceased to continue in their current capacities as Chief Executive Officer, President and Chief Operating Officer of the Company, respectively, at the closing, and (iii) the Company having a specified minimum cash balance and the Company or any of its subsidiaries having an additional specified amount of additional cash, in each case at the closing; the possibility that compliance with the minimum cash condition to the consummation of the proposed transaction may limit the growth of the Company’s business, depending on the availability to the Company of other sources of capital that are permitted under the terms of the definitive agreement entered into in connection with the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction, including in circumstances that would require us to pay a termination fee or other expenses; the effect of the announcement or pendency of the proposed transaction on our ability to retain and hire key personnel, our ability to maintain the relationships with its customers, suppliers and others with whom it does business, or its operating results and business generally; risks related to diverting management’s attention from our ongoing business operations; the risk that stockholder litigation in connection with the proposed transaction may result in significant costs of defense, indemnification and liability; the extent that wireless carriers (mobile network operators, or “MNOs”) or tower companies consolidate their operations, exit the wireless communications business or share site infrastructure to a significant degree; the extent that new technologies reduce demand for wireless infrastructure; competition for assets; whether the tenant leases for the wireless communication tower, antennae or other digital communications infrastructure located on our real property interests are renewed with similar rates or at all; the extent of unexpected lease cancellations, given that most of the tenant leases associated with our assets may be terminated upon limited notice by the MNO or tower company and unexpected lease cancellations could materially impact cash flow from operations; economic, political, cultural, and regulatory risks and other risks to our operations, including risks associated with fluctuations in foreign currency exchange rates and local inflation rates; the effect of the Electronic Communications Code in the
RADIUS GLOBAL INFRASTRUCTURE, INC. AND SUBSIDIARIES |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||
(in USD thousands, except share and per share amounts) |
||||||||||||||||
|
|
Three months
|
|
|
Six months
|
|
|
Three months
|
|
|
Six months
|
|
||||
Revenue |
|
$ |
42,475 |
|
|
$ |
83,689 |
|
|
$ |
32,568 |
|
|
$ |
63,167 |
|
Cost of service |
|
|
2,421 |
|
|
|
4,313 |
|
|
|
2,027 |
|
|
|
2,868 |
|
Gross profit |
|
|
40,054 |
|
|
|
79,376 |
|
|
|
30,541 |
|
|
|
60,299 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
25,486 |
|
|
|
54,950 |
|
|
|
21,205 |
|
|
|
43,892 |
|
Share-based compensation |
|
|
5,389 |
|
|
|
10,573 |
|
|
|
5,496 |
|
|
|
10,088 |
|
Amortization and depreciation |
|
|
23,950 |
|
|
|
47,035 |
|
|
|
19,324 |
|
|
|
38,075 |
|
Impairment - decommissions |
|
|
1,500 |
|
|
|
2,550 |
|
|
|
1,272 |
|
|
|
2,037 |
|
Total operating expenses |
|
|
56,325 |
|
|
|
115,108 |
|
|
|
47,297 |
|
|
|
94,092 |
|
Operating loss |
|
|
(16,271 |
) |
|
|
(35,732 |
) |
|
|
(16,756 |
) |
|
|
(33,793 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Realized and unrealized gain (loss) on foreign currency debt |
|
|
(11,982 |
) |
|
|
(27,461 |
) |
|
|
58,667 |
|
|
|
82,899 |
|
Interest expense |
|
|
(18,957 |
) |
|
|
(36,628 |
) |
|
|
(16,714 |
) |
|
|
(32,812 |
) |
Other income (expense), net |
|
|
3,751 |
|
|
|
6,966 |
|
|
|
(3,164 |
) |
|
|
(2,072 |
) |
Gain on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
942 |
|
|
|
942 |
|
Total other income (expense), net |
|
|
(27,188 |
) |
|
|
(57,123 |
) |
|
|
39,731 |
|
|
|
48,957 |
|
Income (loss) before income tax expense (benefit) |
|
|
(43,459 |
) |
|
|
(92,855 |
) |
|
|
22,975 |
|
|
|
15,164 |
|
Income tax expense (benefit) |
|
|
(201 |
) |
|
|
(1,785 |
) |
|
|
(577 |
) |
|
|
(3,743 |
) |
Net income (loss) |
|
|
(43,258 |
) |
|
|
(91,070 |
) |
|
|
23,552 |
|
|
|
18,907 |
|
Net income (loss) attributable to noncontrolling interest |
|
|
(1,402 |
) |
|
|
(3,629 |
) |
|
|
1,385 |
|
|
|
1,177 |
|
Net income (loss) attributable to stockholders |
|
|
(41,856 |
) |
|
|
(87,441 |
) |
|
|
22,167 |
|
|
|
17,730 |
|
Stock dividend payment to holders of Series A Founders Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
(40,832 |
) |
|
|
(40,832 |
) |
Net loss attributable to common stockholders |
|
$ |
(41,856 |
) |
|
$ |
(87,441 |
) |
|
$ |
(18,665 |
) |
|
$ |
(23,102 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
$ |
(0.43 |
) |
|
$ |
(0.90 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.25 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
|
98,315,969 |
|
|
|
97,075,883 |
|
|
|
93,506,412 |
|
|
|
92,809,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
See accompanying notes to condensed consolidated financial statements. |
RADIUS GLOBAL INFRASTRUCTURE, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
(in USD thousands, except share and per share amounts) |
||||||||
|
|
June 30,
|
|
|
December 31,
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
282,012 |
|
|
$ |
224,258 |
|
Restricted cash |
|
|
2,817 |
|
|
|
1,971 |
|
Short-term investments |
|
|
19,914 |
|
|
|
39,205 |
|
Total cash, cash equivalents, restricted cash, and short-term investments |
|
|
304,743 |
|
|
|
265,434 |
|
Trade receivables, net |
|
|
10,496 |
|
|
|
8,200 |
|
Prepaid expenses and other current assets |
|
|
29,091 |
|
|
|
28,773 |
|
Total current assets |
|
|
344,330 |
|
|
|
302,407 |
|
Real property interests, net: |
|
|
|
|
|
|
||
Right-of-use assets - finance leases, net |
|
|
458,401 |
|
|
|
379,052 |
|
Telecom real property interests, net |
|
|
1,651,931 |
|
|
|
1,569,676 |
|
Real property interests, net |
|
|
2,110,332 |
|
|
|
1,948,728 |
|
Intangible assets, net |
|
|
12,239 |
|
|
|
12,121 |
|
Property and equipment, net |
|
|
1,222 |
|
|
|
1,241 |
|
Goodwill |
|
|
80,509 |
|
|
|
80,509 |
|
Deferred tax asset |
|
|
1,636 |
|
|
|
306 |
|
Restricted cash, long-term |
|
|
53,766 |
|
|
|
88,054 |
|
Other long-term assets |
|
|
18,552 |
|
|
|
20,124 |
|
Total assets |
|
$ |
2,622,586 |
|
|
$ |
2,453,490 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
$ |
55,383 |
|
|
$ |
48,767 |
|
Rent received in advance |
|
|
33,781 |
|
|
|
26,551 |
|
Finance lease liabilities, current |
|
|
13,355 |
|
|
|
15,589 |
|
Telecom real property interest liabilities, current |
|
|
6,549 |
|
|
|
7,975 |
|
Total current liabilities |
|
|
109,068 |
|
|
|
98,882 |
|
Finance lease liabilities |
|
|
22,766 |
|
|
|
22,277 |
|
Telecom real property interest liabilities |
|
|
1,252 |
|
|
|
4,483 |
|
Long-term debt, net of debt discount and deferred financing costs |
|
|
1,692,943 |
|
|
|
1,503,352 |
|
Deferred tax liability |
|
|
147,073 |
|
|
|
131,229 |
|
Other long-term liabilities |
|
|
12,318 |
|
|
|
10,473 |
|
Total liabilities |
|
|
1,985,420 |
|
|
|
1,770,696 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Series A Founder Preferred Stock, |
|
|
— |
|
|
|
— |
|
Series B Founder Preferred Stock, |
|
|
— |
|
|
|
— |
|
Class A Common Stock, |
|
|
10 |
|
|
|
10 |
|
Class B Common Stock, |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
1,088,385 |
|
|
|
1,060,055 |
|
Accumulated other comprehensive loss |
|
|
(51,324 |
) |
|
|
(85,936 |
) |
Accumulated deficit |
|
|
(426,260 |
) |
|
|
(338,819 |
) |
Total stockholders’ equity attributable to Radius Global Infrastructure, Inc. |
|
|
610,811 |
|
|
|
635,310 |
|
Noncontrolling interest |
|
|
26,355 |
|
|
|
47,484 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,622,586 |
|
|
$ |
2,453,490 |
|
See accompanying notes to condensed consolidated financial statements. |
|
||||||||
RADIUS GLOBAL INFRASTRUCTURE, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
(in USD thousands) |
||||||||
|
|
Six months
|
|
|
Six months
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
(91,070 |
) |
|
$ |
18,907 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Amortization and depreciation |
|
|
47,035 |
|
|
|
38,075 |
|
Amortization of finance lease and telecom real property interest liabilities discount |
|
|
917 |
|
|
|
733 |
|
Impairment - decommissions |
|
|
2,550 |
|
|
|
2,037 |
|
Realized and unrealized loss (gain) on foreign currency debt |
|
|
27,461 |
|
|
|
(82,899 |
) |
Amortization of debt discount and deferred financing costs |
|
|
3,504 |
|
|
|
2,715 |
|
Provision for bad debt expense |
|
|
303 |
|
|
|
207 |
|
Share-based compensation |
|
|
10,573 |
|
|
|
10,088 |
|
Deferred income taxes |
|
|
(5,632 |
) |
|
|
(5,626 |
) |
Gain on extinguishment |
|
|
— |
|
|
|
(942 |
) |
Change in assets and liabilities: |
|
|
|
|
|
|
||
Trade receivables, net |
|
|
(2,232 |
) |
|
|
(881 |
) |
Prepaid expenses and other assets |
|
|
3,123 |
|
|
|
(507 |
) |
Accounts payable, accrued expenses and other long-term liabilities |
|
|
9,265 |
|
|
|
5,483 |
|
Rent received in advance |
|
|
6,318 |
|
|
|
2,414 |
|
Net cash provided by (used in) operating activities |
|
|
12,115 |
|
|
|
(10,196 |
) |
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Investments in real property interests and related intangible assets |
|
|
(150,402 |
) |
|
|
(259,721 |
) |
Advance deposits made for real property interest investments |
|
|
(138 |
) |
|
|
(22,686 |
) |
Proceeds from sales of real property interests |
|
|
262 |
|
|
|
— |
|
Proceeds from maturities of short-term investments |
|
|
20,000 |
|
|
|
— |
|
Purchases of property and equipment |
|
|
(348 |
) |
|
|
(195 |
) |
Net cash used in investing activities |
|
|
(130,626 |
) |
|
|
(282,602 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from borrowings under debt agreements |
|
|
158,760 |
|
|
|
427,003 |
|
Repayments of term loans and other debt |
|
|
— |
|
|
|
(112,129 |
) |
Debt issuance costs |
|
|
(2,933 |
) |
|
|
(12,571 |
) |
Proceeds from exercises of stock options |
|
|
257 |
|
|
|
260 |
|
Repayments of finance lease and telecom real property interest liabilities |
|
|
(16,408 |
) |
|
|
(7,407 |
) |
Net cash provided by financing activities |
|
|
139,676 |
|
|
|
295,156 |
|
|
|
|
|
|
|
|
||
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash |
|
|
3,147 |
|
|
|
(19,208 |
) |
|
|
|
|
|
|
|
||
Net change in cash and cash equivalents and restricted cash |
|
|
24,312 |
|
|
|
(16,850 |
) |
|
|
|
|
|
|
|
||
Cash and cash equivalents and restricted cash at beginning of period |
|
|
314,283 |
|
|
|
632,193 |
|
Cash and cash equivalents and restricted cash at end of period |
|
$ |
338,595 |
|
|
$ |
615,343 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash and non-cash transactions: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
32,793 |
|
|
$ |
30,063 |
|
Cash paid for income taxes |
|
$ |
2,684 |
|
|
$ |
1,371 |
|
See accompanying notes to condensed consolidated financial statements. |
Non-GAAP Financial Measures
We use certain additional financial measures not defined by generally accepted accounting principles in
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization. Adjusted EBITDA is calculated by taking EBITDA and further adjusting for non-cash impairment—decommissions expense, realized and unrealized gains and losses on foreign currency debt, realized and unrealized foreign exchange gains/losses associated with non-debt transactions and balances denominated in a currency other than the functional currency, share-based compensation expense and transaction-related costs recorded in selling, general and administrative expenses incurred for incremental business acquisition pursuits (successful and unsuccessful) and related financing and integration activities. Management believes the presentation of EBITDA and Adjusted EBITDA provides valuable additional information for users of the financial statements in assessing our financial condition and results of operations. Each of EBITDA and Adjusted EBITDA has important limitations as analytical tools because they exclude some, but not all, items that affect net income, therefore the calculation of these financial measures may be different from the calculations used by other companies and comparability may therefore be limited. You should not consider EBITDA, Adjusted EBITDA or any of our other non-GAAP financial measures as an alternative or substitute for our results.
The following are reconciliations of EBITDA and Adjusted EBITDA to net income (loss), the most comparable GAAP measure:
(in thousands) |
|
Three months
|
|
|
Six months
|
|
|
Three months
|
|
|
Six months
|
|
||||
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
(43,258 |
) |
|
$ |
(91,070 |
) |
|
$ |
23,552 |
|
|
$ |
18,907 |
|
Amortization and depreciation |
|
|
23,950 |
|
|
|
47,035 |
|
|
|
19,324 |
|
|
|
38,075 |
|
Interest expense |
|
|
18,957 |
|
|
|
36,628 |
|
|
|
16,714 |
|
|
|
32,812 |
|
Income tax expense (benefit) |
|
|
(201 |
) |
|
|
(1,785 |
) |
|
|
(577 |
) |
|
|
(3,743 |
) |
EBITDA |
|
|
(552 |
) |
|
|
(9,192 |
) |
|
|
59,013 |
|
|
|
86,051 |
|
Impairment - decommissions |
|
|
1,500 |
|
|
|
2,550 |
|
|
|
1,272 |
|
|
|
2,037 |
|
Realized and unrealized (gain) loss on foreign currency debt |
|
|
11,982 |
|
|
|
27,461 |
|
|
|
(58,667 |
) |
|
|
(82,899 |
) |
Share-based compensation expense |
|
|
5,389 |
|
|
|
10,573 |
|
|
|
5,496 |
|
|
|
10,088 |
|
Non-cash foreign currency adjustments |
|
|
(1,408 |
) |
|
|
(1,442 |
) |
|
|
4,177 |
|
|
|
4,582 |
|
Transaction-related costs |
|
|
2,073 |
|
|
|
9,268 |
|
|
|
472 |
|
|
|
612 |
|
Adjusted EBITDA |
$ |
18,984 |
$ |
39,218 |
$ |
11,763 |
$ |
20,471 |
Acquisition Capex
Acquisition Capex is a non-GAAP financial measure. Our payments for acquisitions of real property interests consist of either a one-time payment upon the acquisition or up-front payments with contractually committed payments made over a period of time, pursuant to each real property interest agreement. In all cases, we contractually acquire all rights associated with the underlying revenue-producing assets upon entering into the agreement to purchase the real property interest and records the related assets in the period of acquisition. Acquisition Capex therefore represents the total cash spent and committed to be spent for the acquisitions of revenue-producing assets during the period measured. Management believes the presentation of Acquisition Capex provides valuable additional information for users of the financial statements in assessing our financial performance and growth, as it is a comprehensive measure of our investments in the revenue-producing assets that we acquire in a given period. Acquisition Capex has important limitations as an analytical tool, because it excludes certain fixed and variable costs related to our selling, marketing and underwriting activities included in selling, general and administrative expenses in the condensed consolidated statements of operations, including corporate overhead expenses. Further, this financial measure may be different from calculations used by other companies and comparability may therefore be limited. You should not consider Acquisition Capex or any of the other non-GAAP measures we utilize as an alternative or substitute for our results.
The following is a reconciliation of Acquisition Capex to the amounts included as an investing cash flow in the condensed consolidated statements of cash flows for investments in real property interests and related intangible assets, the most comparable GAAP measure, which generally represents up-front payments made in connection the acquisition of these assets during the period. The primary adjustment to the comparable GAAP measure is “committed contractual payments for investments in real property interests and intangible assets,” which represents the total amount of future payments that we were contractually committed to make in connection with our acquisitions of real property interests and intangible assets that occurred during the period. Additionally, foreign exchange translation adjustments impact the determination of Acquisition Capex.
(in thousands) |
|
Six months
|
|
|
Six months
|
|
||
(unaudited) |
|
|
|
|
|
|
||
Investments in real property interests and related intangible assets |
|
$ |
150,402 |
|
|
$ |
259,721 |
|
Committed contractual payments for investments in real property interests and intangible assets |
|
|
9,963 |
|
|
|
7,036 |
|
Foreign exchange translation impacts and other |
|
|
(1,275 |
) |
|
|
(12,627 |
) |
Acquisition Capex |
|
$ |
159,090 |
|
|
$ |
254,130 |
|
Annualized In-Place Rents
Annualized in-place rents is a non-GAAP measure that measures performance based on annualized contractual revenue from the rents expected to be collected on leases owned and acquired (“in place”) as of the measurement date. Annualized in-place rents is calculated using the implied monthly revenue from all revenue producing leases that are in place as of the measurement date multiplied by twelve. Implied monthly revenue for each lease is calculated based on the most recent rental payment under such lease. Management believes the presentation of annualized in-place rents provides valuable additional information for users of the financial statements in assessing our financial performance and growth. In particular, management believes the presentation of annualized in-place rents provides a measurement at the applicable point of time as opposed to revenue, which is recorded in the applicable period on revenue-producing assets in place as they are acquired. Annualized in-place rents has important limitations as an analytical tool because it is calculated at a particular moment in time, the measurement date, but implies an annualized amount of contractual revenue. As a result, following the measurement date, among other things, the underlying leases used in calculating the annualized in-place rents financial measure may be terminated, new leases may be acquired, or the contractual rents payable under such leases may not be collected. In these respects, among others, annualized in-place rents differs from “revenue,” which is the closest comparable GAAP measure and which represents all revenues (contractual or otherwise) earned over the applicable period. Revenue is recorded as earned over the period in which the lessee is given control over the use of the wireless communication sites and recorded over the term of the lease. You should not consider annualized in-place rents or any of the other non-GAAP measures we utilize as an alternative or substitute for our results. The following is a comparison of annualized in-place rents to revenue, the most comparable GAAP measure:
(in thousands) |
|
Six months
|
|
|
Year ended
|
|
||
(unaudited) |
|
|
|
|
|
|
||
Revenue for year ended December 31 |
|
|
|
|
$ |
135,456 |
|
|
Annualized in-place rents as of December 31 |
|
|
|
|
$ |
157,553 |
|
|
Annualized in-place rents as of June 30 |
|
$ |
176,696 |
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230809284403/en/
Investor Relations:
Jason Harbes, CFA
Email: investorrelations@radiusglobal.com
Phone: 1-484-278-2667
Source: Radius Global Infrastructure, Inc.