Summary
American Tower Corporation (AMT) reported its third-quarter and year-to-date results for the period ending September 30, 2008. The company demonstrated consistent revenue growth, primarily driven by its rental and management segment, which accounts for the majority of its total revenue. Total revenues increased by 11% for the third quarter and 10% for the first nine months of the year compared to the same periods in 2007. Financially, the company saw a significant increase in net income for the nine-month period, up 323% year-over-year, largely due to a substantial benefit recognized from discontinued operations related to its Verestar investment. Despite this large year-over-year swing, operational performance remained solid, with rental and management segment operating profit increasing by 10% and 7% for the third quarter and nine-month periods, respectively. The company also continued its share repurchase program, demonstrating a commitment to returning value to shareholders.
Financial Highlights
24 data points| Revenue | $409.27M |
| SG&A Expenses | $44.72M |
| Operating Expenses | $254.90M |
| Operating Income | $154.37M |
| Interest Expense | $63.55M |
| Net Income | $60.47M |
| EPS (Basic) | $0.15 |
| EPS (Diluted) | $0.15 |
| Shares Outstanding (Basic) | 393.57M |
| Shares Outstanding (Diluted) | 416.54M |
Key Highlights
- 1Total revenues increased by 11% year-over-year in Q3 2008 to $409.3 million and by 10% for the first nine months of 2008 to $1.185 billion.
- 2Rental and management revenue, the company's core business, grew by 10% in Q3 and 9% for the nine-month period.
- 3Net income saw a significant increase of 323% for the nine months ended September 30, 2008, reaching $261.4 million, largely due to a $106.1 million tax benefit from discontinued operations related to its Verestar investment.
- 4Depreciation, amortization, and accretion decreased by 21% in Q3 and 23% for the nine-month period due to a change in the estimated useful lives of towers and intangible assets from 15 to 20 years, effective January 1, 2008.
- 5The company continued its share repurchase program, buying back approximately 15.5 million shares for $617.6 million during the first nine months of 2008.
- 6Total outstanding indebtedness was $4.4 billion as of September 30, 2008, with the company holding $66.2 million in cash and cash equivalents and $543.1 million in borrowing capacity under its revolving credit facility.
- 7The company is actively addressing a material weakness in its internal control over financial reporting related to income tax accounting.