Landmark Infrastructure Partners LP Reports Fourth Quarter and Full Year 2014 Financial Results; Provides Guidance

EL SEGUNDO, Calif., Feb. 26, 2015 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (the "Partnership," "we," "us" or "our") (Nasdaq:LMRK) today announced fourth quarter and full year 2014 financial results.

Fourth Quarter and Full Year 2014 Results

For the period beginning with our initial public offering (IPO), which closed on November 19, 2014, through December 31, 2014, our net loss was $2.7 million, or $0.34 per common unit. During this same period, the Partnership generated earnings before interest, income taxes, depreciation and amortization (EBITDA) of ($1.9) million, Adjusted EBITDA of $1.5 million and distributable cash flow of $1.2 million. Net loss and EBITDA included the write-off of our predecessor's unamortized balance of deferred loan costs in connection with the IPO of $2.9 million, or $0.37 per common unit.

For the year ended December 31, 2014, the Partnership generated net income of $0.5 million, EBITDA of $9.0 million, Adjusted EBITDA of $12.4 million and distributable cash flow of $8.2 million.

Initial Public Offering

On November 14, 2014, the Partnership's common units began trading on the NASDAQ under the ticker symbol "LMRK." On November 19, 2014, the Partnership completed the offering of 2,650,000 common units, and on December 18, 2014, the Partnership sold 100,000 common units pursuant to a partial exercise of the underwriters' option to purchase additional units.

Cash Distributions

As previously announced, on January 26, 2015, the Board of Directors of the Partnership's general partner declared a prorated quarterly cash distribution of $0.1344 per unit, which corresponds to a minimum quarterly distribution of $0.2875 per unit, or $1.15 per unit on an annualized basis. This distribution was prorated for the period following the closing of the IPO and was paid on February 13, 2015.

Capital and Liquidity

As of December 31, 2014, the Partnership had $74.0 million of outstanding borrowings under its revolving credit facility and approximately $116.0 million of undrawn borrowing capacity, subject to compliance with certain covenants. During the fourth quarter, the Partnership swapped the floating one-month LIBOR rate on $70.0 million of its outstanding borrowings to a fixed rate of 1.52% for a four-year period beginning December 24, 2014. On February 5, 2015, the Partnership swapped the floating rate on an additional $25.0 million of borrowings at a fixed rate of 1.29% for a four-year period beginning April 13, 2015.

Guidance

The Partnership's sponsor, Landmark Dividend, has expressed its intent to offer us the right to purchase assets with annual rents ranging from $15.0 to $18.0 million over the next 12 months. These drop-downs, combined with organic portfolio growth expected from contractual rent escalators, leasing activity and revenue sharing arrangements, are expected to drive distribution growth of 10% to 15% over the minimum quarterly distribution ("MQD") of $0.2875 per unit ($1.15 per unit on an annualized basis) by the end of 2015.

Conference Call Information

The Partnership will hold a conference call on Thursday, February 26, 2015, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its fourth quarter 2014 financial and operating results. The call can be accessed via a live webcast at http://investor.landmarkmlp.com, or by dialing 877-930-8063 inside the U.S. and Canada. Investors outside the U.S. and Canada should dial 253-336-7764. The passcode for both numbers is 81941697.

A webcast replay will be available approximately two hours after the completion of the conference call through April 30, 2015 at http://investor.landmarkmlp.com. The replay is also available through March 8, 2015 by dialing 855-859-2056 or 404-537-3406 and entering the access code 81941697.

About Landmark Infrastructure Partners

The Partnership is a growth-oriented master limited partnership formed to acquire, own and manage a portfolio of real property interests that the Partnership leases to companies in the wireless communication, outdoor advertising and renewable power generation industries. Headquartered in El Segundo, California, the Partnership's real property interests consist of a diversified portfolio of real estate interests located in 42 states and the District of Columbia, entitling the Partnership to rental payments from leases on approximately 700 tenant sites.

Non-GAAP Financial Measures

We define EBITDA as net income before interest, income taxes, depreciation and amortization, and we define Adjusted EBITDA as EBITDA before impairments, acquisition-related costs, unrealized and realized gain or loss on derivatives, loss on extinguishment of debt, unit-based compensation, straight line rental adjustments, amortization of above- and below-market lease intangibles, and the capital contribution to fund our general and administrative expense reimbursement. We define distributable cash flow as Adjusted EBITDA less cash interest paid, current cash income tax paid and maintenance capital expenditures. Distributable cash flow will not reflect changes in working capital balances. EBITDA and Adjusted EBITDA should not be considered an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, EBITDA and Adjusted EBITDA should be compared with our reported net income in accordance with GAAP, as presented in our combined financial statements.

Adjusted EBITDA and distributable cash flow are non GAAP supplemental financial measures that management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

• our operating performance as compared to other publicly traded limited partnerships, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods;
• the ability of our business to generate sufficient cash to support our decision to make distributions to our unitholders;
• our ability to incur and service debt and fund capital expenditures; and
• the viability of acquisitions and the returns on investment of various investment opportunities.

We believe that the presentation of EBITDA and Adjusted EBITDA provides information useful to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to EBITDA, Adjusted EBITDA and distributable cash flow are net income and net cash provided by operating activities. EBITDA and Adjusted EBITDA should not be considered as an alternative to GAAP net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Each of EBITDA, Adjusted EBITDA and distributable cash flow has important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities, and these measures may vary from those of other companies. You should not consider EBITDA, Adjusted EBITDA and distributable cash flow in isolation or as a substitute for analysis of our results as reported under GAAP. As a result, because EBITDA, Adjusted EBITDA and distributable cash flow may be defined differently by other companies in our industry, EBITDA, Adjusted EBITDA and distributable cash flow as presented below may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. For a reconciliation of EBITDA, Adjusted EBITDA and distributable cash flow to the most comparable financial measures calculated and presented in accordance with GAAP, please see the "Reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow" table below.

Safe Harbor

This release contains forward-looking statements within the meaning of federal securities laws. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-looking information. You can identify forward-looking statements by words such as "anticipate," "believe," "estimate," "expect," "forecast," "project," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Partnership's control and are difficult to predict. These statements are often based upon various assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends made by the management of the Partnership. Although the Partnership believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, the Partnership cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. Examples of forward-looking statements in this press release include the discussion of potential acquisitions from our sponsor and our expected distribution growth. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements contained in the Partnership's filings with the U.S. Securities and Exchange Commission, including the Form S-11 and prospectus relating to the initial public offering of the Partnership's common units and the Partnership's annual report on Form 10-K for the year ended December 31, 2014. These risks could cause the Partnership's actual results to differ materially from those contained in any forward-looking statement.