HOUSTON-Following Crown Castle International Corp.’s good news-the company’s shrinking net loss in the second quarter-the company released some not-so-good news that the Securities and Exchange Commission has launched an informal inquiry into the company’s stock-option practices.
Crown said it will cooperate with the SEC in its investigation, and will also conduct an internal investigation into the matter. Crown is one of a number of companies embroiled in stock-option investigations.
As for its second-quarter results, Crown’s net loss came in at $13.3 million for the quarter, down from a net loss of $225.8 million during the same period last year. Last year’s results included $198.5 million in losses from early retirement of debt.
Site rental revenues for the quarter increased 14.8 percent to $169.2 million from $147.4 million for the same period last year. Site rental gross margin increased 19.4 percent to $118.2 million from $99 million during the same period last year.
The company offered guidance for the third quarter of a net loss of between $17 million and $34 million. For the year, it forecasts a net loss of between $63 million and $110 million.
Raymond James Equity Research called the company’s earnings solid, noting, “We believe the environment for CCI remains favorable for continued shareholder value creation.”
CCI is the nation’s second-largest tower owner with about 12,300 sites.
News of the company’s earnings sent its stock down $1.69 per share to $33.71.
