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Communications Sales & Leasing Reports 1Q Earnings up From 4Q

2 min read

Communications Sales & Leasing Inc. of Little Rock on Thursday reported a first-quarter net income of $8 million, a gain of $800,000 from 7.2 million in the fourth quarter.

CS&L spun off from Windstream Corp. in April, so it didn’t report earnings for the first quarter of last year.

Revenues also increased by $800,000, from $173.9 million in the fourth quarter of 2015 to $174.7 million for the first quarter of 2016.  

Earnings per common share were 5 cents for both the first quarter of this year and fourth quarter of last year.

The publicly traded real estate investment trust completed its $409 million acquisition of PEG Bandwidth LLC after the quarter ended.

According to a news release, CS&L paid $315 million in cash, borrowing $321 million under its revolving credit facility to fund that cash portion of the purchase price and transaction costs.

The company also issued one million shares of its common stock and issued 87,500 shares of its 3 percent series A convertible preferred stock to holders of PEG membership interests.

On May 12, CS&L also spent $3 million on 32 wireless towers and operating rights for 49 wireless towers on approximately 1,000 properties that are being leased exclusively to Windstream, the release states.

During the first quarter, CS&L purchased wireless tower assets from Summit Wireless Infrastructure LLC of Mexico for $3 million.

CS&L expects to gain, by the end of 2016, $55 million in revenues from its purchase of PEG and that net income attributable to common shares will be between 28 cents and 30 cents per diluted share. 

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