Summary
AMERICAN TOWER CORP /MA/ (AMT) reported its financial results for the period ending June 29, 2009. The company saw a 8% increase in total revenues year-over-year for the quarter, driven by a 6% rise in rental and management revenue. This growth was supported by adding new tenants and equipment to existing sites, as well as revenue from newly acquired or constructed sites. Despite revenue growth, operating expenses also increased by 8%, largely due to higher selling, general, administrative, and development expenses, partly influenced by increased bad debt expense and acquisition-related costs. The company also recorded a significant loss on the retirement of long-term obligations due to repurchasing its 7.50% senior notes. Net income attributable to American Tower Corporation decreased by 65% compared to the prior year's quarter, primarily due to a significant income tax benefit recorded in the prior year related to discontinued operations (Verestar).
Financial Highlights
45 data points| Revenue | $423.36M |
| SG&A Expenses | $49.86M |
| Operating Expenses | $256.91M |
| Operating Income | $166.45M |
| Interest Expense | $62.65M |
| Net Income | $56.29M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.14 |
| Shares Outstanding (Basic) | 397.42M |
| Shares Outstanding (Diluted) | 408.83M |
Key Highlights
- 1Total revenues increased by 8% to $423.4 million for the second quarter of 2009 compared to the same period in 2008.
- 2Rental and management revenue, the primary revenue driver (96% of total revenues), grew by 6% to $406.8 million, reflecting growth from existing and acquired sites.
- 3Selling, general, administrative, and development (SG&A&D) expenses increased by 19% to $49.9 million, impacted by higher bad debt expenses and acquisition costs.
- 4The company recorded a $6.0 million loss on the retirement of long-term obligations related to the repurchase of 7.50% senior notes.
- 5Net income attributable to American Tower Corporation decreased significantly by 65% to $56.3 million, largely due to the absence of a large tax benefit from discontinued operations recorded in the prior year.
- 6Cash flow from operating activities increased by approximately $50.2 million to $409.3 million for the six months ended June 30, 2009, compared to the prior year.
- 7The company acquired XCEL Telecom Private Limited in India for approximately $98.0 million, adding 1,660 towers to its portfolio and generating preliminary goodwill of $45.9 million.