American Tower Corporation Reports Third Quarter 2009 Financial Results
More News related to AMT
- American Tower Corporation Agrees to Acquire 196 Towers from Cincinnati Bell Inc.
- AMT Provides Business Update for the Third Quarter 2009
- American Tower Corporation Announces Completion of Redemption of Outstanding 7.125% Senior Notes
- AMT Successful in Preclinical Treatment of DMD
- Macquarie Downgrades American Tower (AMT) to Neutral
THIRD QUARTER 2009 HIGHLIGHTS
-- Rental and management segment revenue increased to $430.5 million
-- Cash provided by operating activities was $240.1 million
-- Added over 570 new communications sites to our portfolio
BOSTON--(BUSINESS WIRE)-- American Tower Corporation (NYSE: AMT) today reported financial results for the third quarter ended September 30, 2009.
Jim Taiclet, American Tower's Chief Executive Officer stated, "2009 has been a very successful year thus far for American Tower, both operationally and financially. Our achievements to date include the integration of over 2,650 new communications sites into our portfolio, while maintaining our industry leading Adjusted EBITDA Margin. In addition, the recent upgrades of our credit rating to investment grade enabled us to issue 4.625% senior unsecured notes, by far the lowest cost unsecured notes we have achieved to date. These trends highlight our disciplined capital allocation process and strong balance sheet which we believe will continue to provide a foundation for strong Core Growth beyond 2009."
Operating Highlights
American Tower generated the following operating results for the quarter ended September 30, 2009 (unless otherwise indicated, all comparative information is presented against the quarter ended September 30, 2008):
Total revenues increased 8.5% to $444.1 million, and rental and management segment revenues increased 9.2% to $430.5 million. Rental and management segment revenue for the quarter ended September 30, 2009 includes $6.7 million of one-time revenue related to a termination agreement with one of the Company's broadcast customers. In addition, rental and management segment revenue growth was negatively impacted by approximately 2.1% due to foreign currency exchange rate fluctuations and 0.9% due to straight-line revenue recognition. Excluding the impact of foreign currency exchange rate fluctuations, straight-line revenue recognition and the one-time revenue item described above, our Core Growth in rental and management segment revenue was 10.3%. Rental and management segment Gross Margin increased 9.4% to $333.0 million. Network development services revenue and Gross Margin were $13.6 million and $6.1 million, respectively.
Total selling, general, administrative and development expense was $47.9 million. The Company's selling, general, administrative and development expense for the quarter included $13.0 million of stock-based compensation expense.
Adjusted EBITDA increased 9.6% to $304.2 million, and Adjusted EBITDA Margin was 68%. Adjusted EBITDA growth was negatively impacted by approximately 1.4% due to foreign currency exchange rate fluctuations and 0.8% due to straight-line revenue and expense recognition. Excluding the impact of foreign currency exchange rate fluctuations, straight-line revenue recognition and the one-time revenue item described above, our Core Growth in Adjusted EBITDA was 9.2%.
Operating income was $179.1 million and net income was $67.4 million. Net income per basic and diluted common share was $0.17.
The Company is introducing a new performance metric, Recurring Free Cash Flow, which it believes better measures the performance of its underlying assets and reflects the amount that may be available for the Company to reinvest into the business through discretionary capital expenditures and acquisitions or return to shareholders. During the quarter ended September 30, 2009, Recurring Free Cash Flow increased 16.3% to $206.0 million and Recurring Free Cash Flow per Share increased 18.6% to $0.51.
Investing Highlights
During the quarter ended September 30, 2009, cash provided by operating activities of $240.1 million, less $68.6 million in capital expenditures, resulted in Free Cash Flow of $171.5 million. Discretionary capital expenditures of $50.5 million included $32.9 million for the construction of new communications sites and the installation of shared back-up power generators and $17.6 million for the purchase of land under our towers. Additionally, the Company spent $12.0 million for capital improvements and corporate capital expenditures and $6.0 million for the augmentation of existing sites to accommodate new equipment. Separately, the Company spent $67.9 million on acquisitions.
During the quarter ended September 30, 2009, the Company completed the construction of 267 communications sites and purchased 304 communications sites, including our previously announced acquisition of 230 communications sites in Brazil. Subsequent to the end of the quarter, the Company acquired an additional 326 communications sites in India.
During the quarter ended September 30, 2009, the Company repurchased a total of 3.6 million shares of its Class A common stock for approximately $117.6 million pursuant to its stock repurchase program. As of October 23, 2009, the Company had repurchased approximately 19.9 million shares of its Class A common stock for approximately $721.3 million under its $1.5 billion stock repurchase program announced in March 2008, which includes approximately 20,800 shares of Class A common stock repurchased for approximately $0.8 million subsequent to September 30, 2009. The Company will continue to manage the pacing of the program in the future in response to general market conditions and other relevant factors.
Please refer to Non-GAAP and Defined Financial Measures on pages 3 and 4 for definitions of Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Recurring Free Cash Flow, Recurring Free Cash Flow per Share, Core Growth and Free Cash Flow. For additional financial information, including reconciliations to GAAP measures, please refer to the supplemental schedules of selected financial information on pages 8 through 12.
Reaffirming Full Year 2009 Outlook
Based on its continued strong operating performance, the Company is reaffirming its Full Year 2009 Outlook that was provided on July 29, 2009.
These estimates are based on a number of assumptions that management believes to be reasonable, and reflect the Company's expectations as of November 3, 2009. Actual results may differ materially from these estimates as a result of various factors, and we refer you to the cautionary language regarding "forward-looking" statements included in this press release when considering this information.
Conference Call Information
American Tower will host a conference call today at 8:30 a.m. ET to discuss its third quarter 2009 financial results. Supplemental materials for the call will be available on the Company's website www.americantower.com. The conference call dial-in numbers are as follows:
US/Canada dial-in: (877) 235-9047 International dial-in: (706) 645-9644 Passcode: 36210079
A replay of the call will be available from 10:30 a.m. ET November 3, 2009 until 11:59 p.m. ET November 17, 2009. The replay dial-in numbers are as follows:
US/Canada dial-in: (800) 642-1687 International dial-in: (706) 645-9291 Passcode: 36210079
American Tower will also sponsor a live simulcast of the call on its website, www.americantower.com. When available, a replay of the call will be available on the Company's website.
About American Tower
American Tower is a leading independent owner, operator and developer of broadcast and wireless communications sites. American Tower currently owns and operates approximately 26,700 communications sites in the United States, Mexico, Brazil and India. For more information about American Tower, please visit www.americantower.com.
Non-GAAP and Defined Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles (GAAP) provided throughout this press release, the Company has presented the following non-GAAP and defined financial measures: Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Recurring Free Cash Flow, Recurring Free Cash Flow per Share, Core Growth and Free Cash Flow. The Company defines Rental and Management Segment Gross Margin as operating income before depreciation, amortization and accretion, other operating expenses, stock-based compensation expense, corporate expenses, international business development expenses, rental and management segment overhead, network development services segment overhead, network development services segment operating expenses, network development services segment revenue, plus interest income, TV Azteca, net. The Company defines Network Development Services Segment Gross Margin as operating income before depreciation, amortization and accretion, other operating expenses, stock-based compensation expense, corporate expenses, international business development expenses, network development services segment overhead, rental and management segment overhead, rental and management segment operating expenses, and rental and management segment revenue. The Company defines Adjusted EBITDA as operating income before depreciation, amortization and accretion, other operating expenses, and stock-based compensation expense, plus interest income, TV Azteca, net. The Company defines Adjusted EBITDA Margin as the percentage that results from dividing Adjusted EBITDA by total revenue. The Company defines Recurring Free Cash Flow as Adjusted EBITDA before straight-line revenue and expense, plus interest income, less interest expense, cash paid for income taxes and cash payments related to redevelopment, capital improvement and corporate capital expenditures. The Company defines Recurring Free Cash Flow per Share as Recurring Free Cash Flow divided by the diluted weighted average common shares outstanding. The Company defines Core Growth in rental and management segment revenue and Adjusted EBITDA as the increase or decrease, expressed as a percentage, resulting from a comparison of financial results for a current period with corresponding financial results for the corresponding period in a prior year, in each case, excluding the impact of straight-line revenue and expense recognition, foreign currency fluctuations, and material one-time items. The Company defines Free Cash Flow as cash provided by operating activities less payments for purchase of property and equipment and construction activities. These measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as additional information because management believes they are useful indicators of the current financial performance of the Company's core businesses. The Company believes that these measures can assist in comparing company performances on a consistent basis irrespective of depreciation and amortization or capital structure. Depreciation and amortization can vary significantly among companies depending on accounting methods, particularly where acquisitions or non-operating factors, including historical cost bases, are involved. Notwithstanding the foregoing, the Company's measures of Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Recurring Free Cash Flow, Recurring Free Cash Flow per Share, Core Growth and Free Cash Flow may not be comparable to similarly titled measures used by other companies.
Cautionary Language Regarding Forward-Looking Statements
This press release contains "forward-looking statements" concerning the Company's goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions, and other statements that are not necessarily based on historical facts. Examples of these statements include, but are not limited to statements regarding our full year 2009 outlook, our stock repurchase programs, the financial strength of certain of our customers and foreign currency exchange rates. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) decrease in demand for our communications sites would materially and adversely affect our operating results and we cannot control that demand; (2) if our wireless service provider customers consolidate or merge with each other to a significant degree, our growth, revenue and ability to generate positive cash flows could be adversely affected; (3) substantial leverage and debt service obligations may adversely affect us; (4) restrictive covenants in the loan agreement for the revolving credit facility and term loan, the indentures governing our debt securities, and the loan agreement related to our securitization transaction could adversely affect our business by limiting flexibility; (5) we could suffer adverse tax and other financial consequences if taxing authorities do not agree with our tax positions, or we are unable to utilize our net operating losses; (6) due to the long-term expectations of revenue from tenant leases, the tower industry is sensitive to the creditworthiness and financial strength of its tenants; (7) our foreign operations are subject to economic, political, and other risks that could adversely affect our revenues or financial position, including risks associated with foreign currency exchange rates; (8) a substantial portion of our revenue is derived from a small number of customers; (9) we anticipate that we may need additional financing to fund our stock repurchase programs, to refinance our existing indebtedness and to fund future growth and expansion initiatives; (10) new technologies could make our tower leasing business less desirable to potential tenants and result in decreasing revenues; (11) we could have liability under environmental laws; (12) our business is subject to government regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (13) increasing competition in the tower industry may create pricing pressures that may adversely affect us; (14) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; (15) if we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, our cash flows derived from such towers would be eliminated; (16) our towers may be affected by natural disasters and other unforeseen damage for which our insurance may not provide adequate coverage; (17) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated; and (18) our historical stock option granting practices are subject to ongoing governmental proceedings, which could result in fines, penalties or other liability. For other important factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of our Form 10-Q for the quarter ended June 30, 2009 under the caption "Risk Factors." We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $ 229,674 $ 143,077
Restricted cash 50,795 51,866
Short-term investments and available-for-sale 3,844 2,028
securities
Accounts receivable, net of allowances 71,271 51,313
Prepaid and other current assets 78,723 61,415
Deferred income taxes 191,623 163,981
Total current assets 625,930 473,680
Property and equipment, net 3,128,120 3,022,636
Goodwill 2,239,420 2,186,233
Other intangible assets, net 1,532,400 1,566,155
Deferred income taxes 225,728 381,428
Notes receivable and other long-term assets 643,226 581,533
Total $ 8,394,824 $ 8,211,665
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 165,957 $ 151,985
Accrued interest 47,270 28,635
Current portion of long-term obligations 7,717 1,837
Unearned revenue 120,057 120,188
Total current liabilities 341,001 302,645
Long-term obligations 4,179,038 4,331,309
Other long-term liabilities 639,634 583,232
Total liabilities 5,159,673 5,217,186
STOCKHOLDERS' EQUITY
Class A Common Stock 4,785 4,685
Additional paid-in capital 8,352,944 8,109,224
Accumulated deficit (2,173,882 ) (2,356,127 )
Accumulated other comprehensive loss (18,420 ) (20,031 )
Treasury stock (2,933,612 ) (2,746,429 )
Total American Tower Corporation stockholders' 3,231,815 2,991,322
equity
Non-controlling interest 3,336 3,157
Total stockholders' equity 3,235,151 2,994,479
Total $ 8,394,824 $ 8,211,665
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
REVENUES:
Rental and management $ 430,525 $ 394,396 $ 1,233,222 $ 1,152,722
Network development 13,580 14,872 42,919 32,458
services
Total operating revenues 444,105 409,268 1,276,141 1,185,180
OPERATING EXPENSES:
Costs of operations
(exclusive of items
shown separately below)
Rental and management 101,128 93,696 283,549 272,579
Network development 7,466 10,161 25,324 18,710
services
Depreciation,
amortization and 105,543 104,389 307,874 301,158
accretion
Selling, general,
administrative and 47,865 44,719 155,357 135,412
development expense (1)
Other operating expenses 3,026 1,936 8,228 3,308
Total operating expenses 265,028 254,901 780,332 731,167
OPERATING INCOME 179,077 154,367 495,809 454,013
OTHER INCOME (EXPENSE)
Interest income, TV 3,585 3,586 10,669 10,711
Azteca, net
Interest income 736 1,017 1,717 2,959
Interest expense (64,122 ) (63,546 ) (188,345 ) (191,568 )
Loss on retirement of (391 ) (959 ) (6,385 ) (1,195 )
long-term obligations
Other income (expense) 42 1,059 1,096 (1,045 )
Total other expense (60,150 ) (58,843 ) (181,248 ) (180,138 )
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES, MINORITY INTEREST 118,927 95,524 314,561 273,875
AND INCOME ON EQUITY
METHOD INVESTMENTS
Income tax provision (51,348 ) (34,918 ) (139,883 ) (120,254 )
Income on equity method 3 5 20 18
investments
INCOME FROM CONTINUING 67,582 60,611 174,698 153,639
OPERATIONS
(Loss) income from
discontinued operations, (4 ) (50 ) 8,127 108,034
net
NET INCOME 67,578 60,561 182,825 261,673
Net income attributable
to non-controlling (223 ) (95 ) (580 ) (266 )
interest
NET INCOME ATTRIBUTABLE
TO AMERICAN TOWER $ 67,355 $ 60,466 $ 182,245 $ 261,407
CORPORATION (AMT)
NET INCOME PER COMMON
SHARE AMOUNTS:
BASIC:
Income from continuing
operations attributable $ 0.17 $ 0.15 $ 0.44 $ 0.39
to AMT
(Loss) income from
discontinued operations -- -- 0.02 0.27
attributable to AMT
Net income attributable $ 0.17 $ 0.15 $ 0.46 $ 0.66
to AMT
DILUTED:
Income from continuing
operations attributable $ 0.17 $ 0.15 $ 0.43 $ 0.36
to AMT
(Loss) income from
discontinued operations -- -- 0.02 0.26
attributable to AMT
Net income attributable $ 0.17 $ 0.15 $ 0.45 $ 0.62
to AMT
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
BASIC 397,315 393,567 397,305 396,187
DILUTED 405,728 416,541 408,303 421,703
___
(1) Selling, general, administrative and development expense includes $12,950
and $13,249 of stock-based compensation expense for the three months ended
September 30, 2009 and September 30, 2008, respectively, and $50,124 and $43,111
of stock-based compensation expense for the nine months ended September 30, 2009
and September 30, 2008, respectively.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
September 30,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 182,825 $ 261,673
Stock-based compensation expense 50,124 43,111
Depreciation, amortization and accretion 307,874 301,158
Deferred income taxes related to discontinued (3,174 ) (104,966 )
operations
Other non-cash items reflected in statements of 147,146 112,033
operations
Increase in net deferred rent asset (8,329 ) (16,651 )
Decrease (increase) in restricted cash 4,236 (1,008 )
Increase in assets (49,297 ) (15,489 )
Increase in liabilities 17,994 6,465
Cash provided by operating activities 649,399 586,326
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for purchase of property and equipment and (182,427 ) (165,194 )
construction activities
Payments for acquisitions (161,175 ) (32,633 )
Proceeds from sale of available-for-sale securities 3,550 4,517
and other long term assets
Deposits, restricted cash and investments (4,329 ) 1,843
Cash used for investing activities (344,381 ) (191,467 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of senior debt 300,000 --
Borrowings under credit facilities -- 525,000
Repayments of notes payable, credit facilities and (354,644 ) (326,929 )
capital leases
Purchases of Class A common stock (189,670 ) (631,901 )
Proceeds from stock options, warrants and stock 35,987 75,910
purchase plan
Deferred financing costs and other financing (10,128 ) (3,827 )
activities
Cash used for financing activities (218,455 ) (361,747 )
Net effect of changes in foreign currency exchange 34 --
rates on cash and cash equivalents
NET INCREASE IN CASH AND CASH EQUIVALENTS 86,597 33,112
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 143,077 33,123
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 229,674 $ 66,235
CASH PAID FOR INCOME TAXES $ 32,760 $ 27,442
CASH PAID FOR INTEREST $ 160,567 $ 168,815
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to rounding.)
SELECTED BALANCE SHEET DETAIL:
Long-term obligations summary, including September 30, 2009
current portion: September 30, 2009
As Adjusted (1)
Commercial Mortgage Pass-Through $ 1,750,000 $ 1,750,000
Certificates, Series 2007-1
Senior Unsecured Revolving Credit 625,000 550,000
Facility
Senior Unsecured Term Loan 325,000 325,000
7.125% Senior Notes due 2012 500,915 --
4.625% Senior Notes due 2015 -- 599,184
7.000% Senior Notes due 2017 500,000 500,000
7.250% Senior Notes due 2019 294,947 294,947
5.000% Convertible Notes due 2010 59,683 59,683
7.250% Senior Subordinated Notes due 288 288
2011
XCEL Telecom Credit Facility (2) 71,206 71,206
Other debt, including capital leases 59,716 59,716
Total debt $ 4,186,755 $ 4,210,024
Cash and cash equivalents 229,674
Net debt (Total debt less cash and cash $ 3,957,081
equivalents)
___
(1) Gives effect to the following events subsequent to the end of the third
quarter: (a) the Company's use of cash on hand to repay $75.0 million under its
Senior Unsecured Revolving Credit Facility on October 19, 2009; (b) the issuance
of $600.0 million principal amount of 4.625% Senior Notes due 2015 at a price
equal to 99.864% of face value on October 20, 2009; and (c) the call for
redemption of all outstanding 7.125% Senior Notes due 2012, which is set for
November 13, 2009.
(2) The Indian rupee-denominated debt was an outstanding obligation of XCEL at
the time of the Company's acquisition of XCEL.
Share count rollforward: (In millions of shares)
Total shares outstanding, as of June 30, 2009 395.8
Shares repurchased (3.6)
Shares issued (1) 8.9
Total shares outstanding, as of September 30, 2009 401.1
___
(1) Includes 7.9 million shares of Class A common stock issued in connection
with the conversion of $162.1 million principal amount of the Company's 3.000%
Convertible Notes due 2010, prior to the redemption of the notes on August 27,
2009.
Aggregate potential dilutive shares from other securities
(1):(In millions of shares)
Vested and exercisable stock options with an average 7.0
exercise price of $28.62 per share (2)
Warrants - reflects shares issuable upon exercise with an 1.8
effective exercise price of $4.48 per share
Potential dilution, as of September 30, 2009 8.8
___
(1) Excludes shares related to the Company's 5.000% Convertible Notes due 2010,
which are convertible at $51.50 per share.
(2) Excludes (a) 5.7 million unvested stock options and (b) 2.0 million unvested
restricted stock units outstanding, as of September 30, 2009.
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to rounding.)
SELECTED INCOME STATEMENT DETAIL:
The following table reflects the estimated impact of foreign currency exchange
rate fluctuations,straight-line revenue and expense recognition and material
one-time items on rental and management segment revenue and Adjusted EBITDA:
Three Months Ended
September 30, 2009
Rental and management segment revenue growth components:
Core rental and management segment revenue growth 10.3 %
Estimated impact of fluctuations in foreign currency (2.1 )%
exchange rates
Impact of straight-line revenue recognition (0.9 )%
Impact of material one-time revenue item 1.9 %
Total rental and management segment revenue growth 9.2 %
Adjusted EBITDA growth components:
Core Adjusted EBITDA growth 9.2 %
Estimated impact of fluctuations in foreign currency (1.4 )%
exchange rates
Net impact of straight-line revenue and expense recognition (0.8 )%
Impact of material one-time revenue item 2.6 %
Total Adjusted EBITDA growth 9.6 %
Rental and management segment straight-line revenue and expense:
In accordance with GAAP, the Company recognizes rental and management segment revenue and expense related to non-cancelable customer and ground lease agreements with fixed escalations on a straight-line basis, over the applicable lease term. As a result, the Company's revenue recognized may differ materially from the amount of cash collected per customer lease, and the Company's expense incurred may differ materially from the amount of cash paid per ground lease. Additional information regarding straight-line accounting can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2008. A summary of rental and management segment straight-line revenue and expense, which represents the non-cash revenue and expense recorded due to straight-line recognition, is as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Rental and management segment $ 9,827 $ 12,264 $ 28,720 $ 38,406
straight-line revenue
Rental and management segment 6,832 7,469 20,391 21,755
straight-line expense
Selling, general, administrative and Three Months Ended Nine Months Ended
development expense
September 30, September 30,
breakout: 2009 2008 2009 2008
Rental and management segment overhead $ 22,267 $ 17,514 $ 63,500 $ 49,991
Network development services segment 1,436 869 4,383 3,060
overhead
Corporate expenses (1) 10,232 10,952 34,128 32,659
International business development 980 2,135 3,222 6,591
expenses
Stock-based compensation expense (2) 12,950 13,249 50,124 43,111
Total $ 47,865 $ 44,719 $ 155,357 $ 135,412
___
(1) Includes a $3.1 million one-time reduction during the nine months ended
September 30, 2008 related to payroll tax expense.
(2) Includes $6.6 million related to the modification of certain stock option
awards during the nine months ended September 30, 2009.
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to rounding.)
SELECTED INCOME STATEMENT DETAIL:
Three Months Ended
Interest expense detail: September 30,
2009 2008
Commercial Mortgage Pass-Through Certificates, Series 2007-1 $ 24,542 $ 24,535
Senior Unsecured Revolving Credit Facility and Term Loan, 9,557 9,284
net of interest rate swap agreements
7.500% Senior Notes due 2012 (1) 212 4,219
7.125% Senior Notes due 2012 8,842 8,575
7.000% Senior Notes due 2017 8,750 8,750
7.250% Senior Notes due 2019 5,527 ---
5.000% Convertible Notes due 2010 746 746
3.000% Convertible Notes due 2012 (2) 413 2,610
XCEL Telecom Credit Facility 2,374 ---
Other debt, including capital leases and amortization of 3,159 4,827
deferred financing costs
Total $ 64,122 $ 63,546
___
(1) During the three months ended September 30, 2009, pursuant to a tender offer
and subsequent redemption, the Company repurchased the remaining 7.500% Senior
Notes due 2012.
(2) During the three months ended September 30, 2009, the Company redeemed the
remaining 3.000% Convertible Notes due 2012 that had not been converted prior to
the redemption date.
SELECTED CASH FLOW DETAIL:
Three Months Ended Nine Months Ended
Payments for purchase of property and
equipment and construction activities: September 30, September 30,
2009 2008 2009 2008
Discretionary - new site construction $ 32,927 $ 29,088 $ 91,998 $ 49,024
and generator installation
Discretionary - ground lease purchases 17,637 11,448 35,183 30,868
Redevelopment 6,035 16,856 25,031 57,053
Capital improvement 8,212 9,087 22,651 23,954
Corporate 3,762 1,397 7,564 4,295
Total $ 68,573 $ 67,876 $ 182,427 $ 165,194
SELECTED PORTFOLIO DETAIL - OWNED SITES: Three Months Ended September 30, 2009 Wireless Broadcast In-building Total Beginning balance, July 1, 2009 25,212 414 176 25,802 New construction 265 -- 2 267 Acquisitions 295 9 -- 304 Adjustments/Reductions 1 -- -- 1 Ending balance, September 30, 2009 25,773 423 178 26,374
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED
FINANCIAL MEASURES
(In thousands, except where noted. Totals may not add due to rounding.)
The reconciliation of Operating income to Adjusted EBITDA and the calculation of
Rental and Management Segment Operating Profit, Rental and Management Gross
Margin, Network Development Services Segment Operating Profit, Network
Development Services Segment Gross Margin, Recurring Free Cash Flow, Recurring
Free Cash Flow per Share and Adjusted EBITDA Margin are as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Operating income 179,077 154,367 495,809 454,013
Depreciation,
amortization and 105,543 104,389 307,874 301,158
accretion
Other operating 3,026 1,936 8,228 3,308
expenses
Stock-based
compensation 12,950 13,249 50,124 43,111
expense
Plus: Interest
income, TV Azteca, 3,585 3,586 10,669 10,711
net
Adjusted EBITDA $ 304,181 $ 277,527 $ 872,704 $ 812,301
Corporate expenses 11,212 13,087 37,350 39,250
(1)
Network development
services segment 1,436 869 4,383 3,060
overhead
Network development
services segment 7,466 10,161 25,324 18,710
operating expenses
Network development
services segment (13,580 ) (14,872 ) (42,919 ) (32,458 )
revenue
Rental and
Management Segment $ 310,715 $ 286,772 $ 896,842 $ 840,863
Operating Profit
Rental and
Management segment 22,267 17,514 63,500 49,991
overhead
Rental and
Management Segment $ 332,982 $ 304,286 $ 960,342 $ 890,854
Gross Margin
Adjusted EBITDA $ 304,181 $ 277,527 $ 872,704 $ 812,301
(from above)
Corporate expenses 11,212 13,087 37,350 39,250
(1)
Rental and
Management segment 22,267 17,514 63,500 49,991
overhead
Rental and
Management segment 101,128 93,696 283,549 272,579
operating expenses
Interest income, TV (3,585 ) (3,586 ) (10,669 ) (10,711 )
Azteca, net
Rental and
Management segment (430,525 ) (394,396 ) (1,233,222 ) (1,152,722 )
revenue
Network Development
Services Segment $ 4,678 $ 3,842 $ 13,212 $ 10,688
Operating Profit
Network development
services segment 1,436 869 4,383 3,060
overhead
Network Development
Services Segment $ 6,114 $ 4,711 $ 17,595 $ 13,748
Gross Margin
Adjusted EBITDA $ 304,181 $ 277,527 $ 872,704 $ 812,301
(from above)
Interest expense (64,122 ) (63,546 ) (188,345 ) (191,568 )
Interest income 736 1,017 1,717 2,959
Cash paid for (13,764 ) (5,636 ) (32,760 ) (27,442 )
income taxes
Straight-line (9,827 ) (12,264 ) (28,720 ) (38,406 )
revenue
Straight-line 6,832 7,469 20,391 21,755
expense
Redevelopment
capital (6,035 ) (16,856 ) (25,031 ) (57,053 )
expenditures
Capital improvement
capital (8,212 ) (9,087 ) (22,651 ) (23,954 )
expenditures
Corporate capital (3,762 ) (1,397 ) (7,564 ) (4,295 )
expenditures
Recurring Free Cash 206,027 177,227 589,741 494,297
Flow
Divided by weighted
average diluted 405,728 416,541 408,303 421,703
shares outstanding
Recurring Free Cash $ 0.51 $ 0.43 $ 1.44 $ 1.17
Flow per Share
Adjusted EBITDA $ 304,181 $ 277,527 $ 872,704 $ 812,301
(from above)
Divided by total 444,105 409,268 1,276,141 1,185,180
operating revenues
Adjusted EBITDA 68 % 68 % 68 % 69 %
Margin
___
(1) Excludes stock-based compensation expense.
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED
FINANCIAL MEASURES
(In thousands, except where noted. Totals may not add due to rounding.)
The calculation of Free Cash Flow is as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Cash provided by operating $ 240,052 $ 227,193 $ 649,399 $ 586,326
activities
Payments for purchase of
property and equipment and (68,573 ) (67,876 ) (182,427 ) (165,194 )
construction activities
Free Cash Flow $ 171,479 $ 159,317 $ 466,972 $ 421,132
Source: American Tower Corporation
Related Categories
Press ReleasesStocks Mentioned
-0.37Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
