What is American Tower's primary business focus as of December 2003?

American Tower's primary business focus is leasing antenna space on its multi-tenant communications towers to wireless service providers and broadcast companies. This segment, referred to as the 'rental and management segment,' is the core of its operations and generates the majority of its revenue and operating profit.

How did the company's revenue change in 2003 compared to 2002?

Total revenues increased to $715.1 million in 2003 from $675.1 million in 2002. This increase was primarily driven by a 14% rise in rental and management revenues, which offset a 27% decrease in network development services revenues.

What is the company's strategy regarding its asset portfolio and debt?

American Tower is actively managing its tower portfolio by selling non-core towers and reinvesting proceeds into high-quality tower assets. The company also aims to reduce its substantial outstanding indebtedness, which stood at approximately $3.4 billion as of December 31, 2003, by utilizing cash flow from operations and proceeds from asset dispositions.

What is the company's approach to customer concentration?

While a significant portion of revenue is derived from a small number of customers, with Verizon Wireless being the largest at approximately 12% of 2003 revenues, the company has a diverse customer base. Approximately 62% of revenues came from eight customers in 2003, indicating some concentration but also a broad base of support.

AMT 10-K FY2003 Annual Report — Revenue, Net Income, EPS

Summary

American Tower Corporation (AMT) reported its 2003 fiscal year results, demonstrating a strategic shift towards its core tower leasing business while divesting non-core assets. The company experienced revenue growth driven by its rental and management segment, which accounted for the vast majority of its operating profit. This growth was fueled by the addition of new tenants to existing towers and revenue from recently acquired and constructed sites. AMT continued to streamline its operations by selling off non-core services businesses, focusing resources on expanding its high-quality tower portfolio and reducing debt. The company's financial performance in 2003 showed increased total revenues compared to 2002, primarily due to strong performance in the rental and management segment, which benefited from contractual lease escalators and increased tower utilization. Despite a decline in revenue from its network development services segment, the overall business outlook remained focused on the stable, recurring revenue generated by its tower leases. Management highlighted the long-term nature of tenant leases and the low incremental costs of adding new tenants as key drivers of future profitability and stable cash flows.

Key Highlights

1Total revenues increased to $715.1 million in 2003, up from $675.1 million in 2002, driven by a 14% increase in rental and management revenues.

2The rental and management segment, the company's core business, accounted for approximately 98.4% of its segment operating profit in 2003.

3The company continued its strategy of divesting non-core assets, completing approximately $123.9 million in non-core asset sales from January 1, 2003, to March 5, 2004.

4Capital expenditures were significantly reduced in 2003 compared to prior years, reflecting a focus on deleveraging and optimizing existing assets.

5AMT maintained a substantial amount of indebtedness, with approximately $3.4 billion in consolidated debt as of December 31, 2003.

6The company had $275.5 million in cash and cash equivalents and $269.3 million in unused capacity under its revolving credit facility as of December 31, 2003, indicating a solid liquidity position.

7Verizon Wireless was AMT's largest customer, representing approximately 12% of total revenues in 2003.

AMERICAN TOWER CORP /MA/ Annual Report, Year Ended Dec 31, 2003

Summary

Key Highlights

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