UPDATE When it released its latest earnings on Wednesday, Crown Castle acknowledged in a Securities and Exchange Commission (SEC) filing the company is under investigation by the agency. Crown Castle said it received a subpoena from the SEC primarily related to its “long-standing capitalization and expense policies for tenant upgrades and installations in its services business.”
Before receiving the subpoena, Crown had previously submitted documents to the SEC related to certain services-related transactions, the company said.
Crown SVP/CFO Daniel Schlanger called the previous submissions “not material in amount” during the company’s earnings call Thursday.
“The subpoena requires us to produce certain documents, but is not a finding that any violation of law has occurred,” Schlanger clarified, according to a Seeking Alpha transcript. “We believe our longstanding capitalization and expense policies are appropriate, and we will, of course, cooperate fully with the SEC, including in connection with their review of those policies.”
Does Crown have any idea when the company would know exactly what the SEC is looking for? “We don’t have any indication of timing,” said Crown President/CEO Jay Brown. “We’ll fully cooperate with the requests that have been made of us and we’ll work through the process as appropriate.”
October 21, 2019