What was the primary driver of the significant increase in revenues and assets during the quarter?

The primary driver was the completion of the merger with SpectraSite, Inc. on August 8, 2005. This acquisition substantially increased the company's tower portfolio and, consequently, its assets, including goodwill and intangible assets. SpectraSite's operational results were included in the financial statements from August 3, 2005, contributing significantly to the reported revenues.

Despite revenue growth, why did the company continue to report a net loss?

The company reported a net loss due to several factors, including significant merger-related expenses, ongoing interest expenses on its substantial debt load, and increased depreciation and amortization charges related to the acquired SpectraSite assets. Non-cash charges and the costs associated with debt retirement also contributed to the net loss.

What steps has the company taken to manage its debt obligations?

American Tower has been actively managing its debt. During the nine months ended September 30, 2005, the company redeemed all of its outstanding 9 3/8% senior notes and repurchased a portion of its ATI 12.25% senior subordinated discount notes. Furthermore, in October 2005, the company refinanced its existing credit facilities into new, larger credit facilities with extended maturity dates, indicating a proactive approach to its capital structure.

What is the outlook for future revenue growth?

Management expects continued growth in rental and management revenue by adding new tenants to existing tower capacity. The company anticipates that the majority of new leasing activity will continue to come from wireless and broadcast service providers. The integration of SpectraSite's assets is expected to contribute to this growth.

AMT 10-Q Quarterly Report Q3 FY2005 — Revenue, Net Income, EPS

Summary

American Tower Corp (AMT) reported its third-quarter results for the period ending September 30, 2005. The company's financial performance was significantly impacted by its merger with SpectraSite, completed in August 2005. This acquisition substantially increased AMT's tower portfolio to over 22,000 sites and resulted in a significant rise in goodwill and intangible assets. While total revenues showed a substantial increase year-over-year, driven by the inclusion of SpectraSite's operations, the company continued to report a net loss. This loss was influenced by merger-related expenses, interest expenses, and non-cash charges. Despite the net loss, operational cash flow remained positive, and the company took steps to manage its debt, including the redemption of its 9 3/8% senior notes.

Key Highlights

1Completed the merger with SpectraSite, Inc. on August 8, 2005, significantly expanding the company's tower portfolio to over 22,000 sites.
2Reported a net loss of $20.9 million for the three months ended September 30, 2005, compared to a net loss of $60.1 million in the prior year's period.
3Total revenues increased by 46% to $264.7 million for the three months ended September 30, 2005, largely due to the inclusion of SpectraSite's revenues.
4Depreciation, amortization, and accretion expenses increased by 43% to $116.8 million, primarily driven by assets acquired in the SpectraSite merger.
5Interest expense decreased by 12% to $57.7 million, mainly due to the redemption of senior notes and repurchases of other debt.
6The company redeemed all outstanding 9 3/8% senior notes due 2009 during the nine months ended September 30, 2005.
7As of September 30, 2005, total outstanding indebtedness was approximately $3.6 billion.
8In October 2005, the company refinanced its credit facilities, establishing new facilities totaling $1.3 billion for American Tower and $1.15 billion for SpectraSite.

AMERICAN TOWER CORP /MA/ Quarterly Report for Q3 Ended Sep 30, 2005

Summary

Key Highlights

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