Landmark Infrastructure Partners LP Reports First Quarter 2015 Financial Results

EL SEGUNDO, Calif., May 7, 2015 (GLOBE NEWSWIRE) -- Landmark Infrastructure Partners LP (the "Partnership," "we," "us" or "our") (Nasdaq:LMRK) today announced first quarter financial results.

Highlights:

• Acquired assets from its sponsor, Landmark Dividend LLC ("Landmark"), with combined annual rents of approximately $2.8 million for total consideration of $47.3 million
• Generated Adjusted EBITDA of $3.4 million and distributable cash flow of $2.5 million
• Increased quarterly distribution per unit for the first quarter by 3.5% over the minimum quarterly distribution ("MQD") to $0.2975 per unit

First Quarter 2015 Results

For the quarter ended March 31, 2015, the Partnership generated Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization) of $3.4 million and distributable cash flow of $2.5 million. Additionally, the partnership generated a net loss of $2.9 million, or $0.37 per common unit, and a deficit in EBITDA of approximately $0.9 million. These net loss and EBITDA amounts include the impact of $2.8 million of non-cash impairments for eleven wireless communication assets and $0.8 million of unrealized losses on derivatives. First quarter Adjusted EBITDA, distributable cash flow, net loss and EBITDA exclude results prior to March 4, 2015 that are attributable to the assets acquired in the First Quarter Acquisition (as defined below).

"We are pleased with our first quarter operating performance," said Tim Brazy, the Partnership's Chief Executive Officer. "We were able to close one of the drop-down acquisitions planned for the beginning of the second quarter a bit earlier than anticipated and increase our distribution by 3.5%. While we recorded impairments associated with our wireless communication sites, we maintain our 2015 occupancy rate guidance of 97%."

Quarterly Distribution

As previously announced, on April 23, 2015, the Board of Directors of the Partnership's general partner declared a quarterly cash distribution of $0.2975 per limited partner unit, or $1.19 per unit on an annualized basis, for the quarter ended March 31, 2015. This distribution represents a 3.5% increase over the Partnership's MQD of $0.2875 per unit, and is payable on May 14, 2015 to unitholders of record as of May 5, 2015.

Capital and Liquidity

As of March 31, 2015, the Partnership had $97.0 million of outstanding borrowings under its revolving credit facility (the "Facility") and approximately $93.0 million of undrawn borrowing capacity, subject to compliance with certain covenants. During the first quarter, the Partnership swapped the floating rate on $25.0 million of borrowings at an effective fixed rate of 3.79% for a four-year period beginning April 13, 2015. The additional swap brings the total fixed borrowings under the Facility to $95.0 million with a total weighted average fixed interest rate of 3.96%.

Recent Drop-down Acquisitions

The Partnership recently completed two drop-down acquisitions from Landmark that closed on March 4, 2015 (the "First Quarter Acquisition") and April 8, 2015 (the "Second Quarter Acquisition"), respectively. Both of these acquisitions were accretive to the Partnership's distributable cash flow. In connection with the First Quarter Acquisition, we acquired 81 tenant sites with expected annual rental revenue of approximately $1.5 million for total consideration of $25.2 million. In connection with the Second Quarter Acquisition, we acquired 73 tenant sites with expected annual rental revenue of approximately $1.3 million for total consideration of $22.2 million. The consideration for each acquisition was funded primarily with borrowings under the Partnership's existing Facility.

Because of the common control aspects of the acquisitions, they were deemed to be transactions between entities under common control and, as such, will be accounted for on an "as if pooled" basis for all periods in which common control existed. As a result, our financial and operating results for the first quarter retroactively include financial and operating results from the First Quarter Acquisition.

Guidance

The Partnership's sponsor, Landmark Dividend, has previously expressed its intent to offer us the right to purchase assets with annual rents ranging from $15.0 to $18.0 million over a 12-month period beginning February 26, 2015. 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 MQD of $0.2875 per unit ($1.15 per unit on an annualized basis) by the end of 2015. As a result of the two recent drop-down acquisitions from Landmark, the Partnership's management expects to recommend that its Board increase the Partnership's second quarter 2015 cash distribution to $0.3075 per unit, which is 7.0% higher than the MQD of $0.2875 per unit, and anticipated in August 2015.

Conference Call Information

The Partnership will hold a conference call on Thursday, May 7, 2015, at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its first quarter 2015 financial and operating results. The call can be accessed via a live webcast at http://investor.landmarkmlp.com, or by dialing 877-930-8063 in the U.S. and Canada. Investors outside of the U.S. and Canada should dial 253-336-7764. The passcode for both numbers is 28472594.

A webcast replay will be available approximately two hours after the completion of the conference call through June 30, 2015 at http://investor.landmarkmlp.com. The replay is also available through May 17, 2015 by dialing 855-859-2056 or 404-537-3406 and entering the access code 28472594.

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 long-term and perpetual easements, tenant lease assignments and fee simple properties located in 45 states and the District of Columbia, entitling the Partnership to rental payments from leases on approximately 850 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 or realized gain or loss on derivatives, loss on extinguishment of debt, gain on sale of real property interest, unit-based compensation, straight line rental adjustments, amortization of above- and below-market rents, and after 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. We believe that to understand our performance further, EBITDA, Adjusted EBITDA and distributable cash flow should be compared with our reported net income in accordance with generally accepted accounting principles in the United States ("GAAP"), as presented in our combined financial statements.

EBITDA, 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, Adjusted EBITDA and distributable cash flow 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, Adjusted EBITDA and distributable cash flow should not be considered as an alternative to GAAP net income, net cash provided by 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, occupancy rate 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 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.

CONTACT: Marcelo Choi
         Vice President, Investor Relations
         (310) 598-3173
         ir@landmarkmlp.com