Summary
American Tower Corporation (AMT) reported its third-quarter and nine-month results for the period ending September 30, 2009. The company demonstrated revenue growth driven primarily by its core rental and management segment, which saw a 9% increase year-over-year for the quarter and a 7% increase for the nine-month period. This growth was fueled by adding new tenants and equipment to existing sites, as well as contributions from acquired sites. While network development services revenue saw a slight decrease in the quarter, it increased year-over-year for the nine-month period. The company also successfully managed its expenses, with total operating expenses increasing at a slower pace than revenues. During the period, AMT actively managed its debt, including a significant debt refinancing effort that included issuing new notes and repurchasing existing ones, demonstrating a proactive approach to its capital structure. The company also continued its share repurchase program. Looking ahead, AMT expressed confidence in its ability to fund operations and capital expenditures through internally generated cash flow, while also noting the potential for opportunistic capital raising. The company's international expansion efforts, particularly in India and Brazil through acquisitions, are progressing and align with its strategic growth objectives. Despite some ongoing legal proceedings and the general economic climate, AMT appears focused on strengthening its core business and expanding its infrastructure footprint.
Financial Highlights
46 data points| Revenue | $444.11M |
| SG&A Expenses | $47.87M |
| Operating Expenses | $265.03M |
| Operating Income | $179.08M |
| Interest Expense | $64.12M |
| Net Income | $67.36M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 397.31M |
| Shares Outstanding (Diluted) | 405.73M |
Key Highlights
- 1Total revenues increased by 9% to $444.1 million for the three months ended September 30, 2009, compared to the prior year period, driven by a 9% increase in rental and management revenue.
- 2Rental and management revenue increased by $36.1 million (9%) for the three months ended September 30, 2009, compared to the prior year period, reflecting growth from existing sites and new acquisitions.
- 3The company successfully issued $300.0 million of 7.25% senior unsecured notes due 2019 and used a portion of the proceeds to repurchase $225.0 million of its 7.50% notes.
- 4Total operating expenses increased by 4% to $265.0 million for the three months ended September 30, 2009, indicating effective cost management relative to revenue growth.
- 5Cash provided by operating activities was $649.4 million for the nine months ended September 30, 2009, an increase of approximately $63.1 million from the same period in 2008.
- 6The company acquired XCEL Telecom Private Limited in India for approximately $96.0 million, supporting its international expansion strategy.
- 7Despite a decrease in net income of 30% for the nine months ended September 30, 2009, to $182.2 million, this was significantly impacted by income from discontinued operations in the prior year period, with income from continuing operations showing a 14% increase.