10-QPeriod: Q1 FY2012

AMERICAN TOWER CORP /MA/ Quarterly Report for Q1 Ended Mar 31, 2012

Filed May 3, 2012For Securities:AMT

Summary

American Tower Corporation (AMT) reported strong first-quarter 2012 results, marked by a significant increase in total revenues, up 24% year-over-year to $696.5 million. This growth was primarily driven by robust performance in both domestic and international rental and management segments, fueled by organic revenue growth from legacy sites and contributions from newly acquired and constructed sites. The company's strategic transition to a Real Estate Investment Trust (REIT) effective January 1, 2012, is a key development, positioning it to potentially benefit from tax advantages while requiring a focus on distributions to stockholders. Despite increased interest expenses and other operating costs, particularly related to acquisitions and impairments, net income attributable to American Tower Corporation surged by 129% to $221.3 million. Adjusted EBITDA also showed healthy growth, increasing by 23% to $462.5 million, underscoring the operational strength of its core business. The company also demonstrated solid liquidity, with substantial cash and cash equivalents and significant borrowing capacity, enabling it to fund operations, capital expenditures, and strategic growth initiatives, including ongoing acquisitions and a continued stock repurchase program.

Financial Highlights

50 data points
Beta

Revenue

$696.52M

Net Income

$221.31M

31.8% Net Margin

EPS (Diluted)

$0.56

Total Assets

$12.64B

Cash & Equivalents

$471.26M

Free Cash Flow

$402.02M

Financial Statements
Beta
Revenue$696.52M
SG&A Expenses$79.58M
Operating Expenses$422.07M
Operating Income$274.45M
Interest Expense$95.12M
Net Income$221.31M
EPS (Basic)$0.56
EPS (Diluted)$0.56
Shares Outstanding (Basic)393.88M
Shares Outstanding (Diluted)398.45M

Key Highlights

  • 1Total revenues increased by 24% to $696.5 million for the three months ended March 31, 2012, compared to the prior year period.
  • 2Domestic rental and management revenue grew 17% year-over-year, driven by organic growth and new sites.
  • 3International rental and management revenue saw a significant increase of 53% year-over-year, largely due to new site acquisitions and construction.
  • 4Net income attributable to American Tower Corporation more than doubled, increasing by 129% to $221.3 million.
  • 5Adjusted EBITDA increased by 23% to $462.5 million, reflecting strong operational performance across segments.
  • 6The company successfully transitioned to operating as a Real Estate Investment Trust (REIT) effective January 1, 2012.
  • 7Total outstanding debt stood at approximately $7.3 billion as of March 31, 2012, with significant liquidity from cash and credit facilities.

Frequently Asked Questions

The most significant development is the company's transition to operating as a Real Estate Investment Trust (REIT) for federal income tax purposes, effective January 1, 2012. This change impacts its tax structure and requires distributions to stockholders, which are now being made.

American Tower Corporation experienced robust revenue growth, with total revenues increasing by 24% to $696.5 million. This was driven by strong performance in both its domestic and international rental and management segments, benefiting from organic growth on existing sites and contributions from new sites.

As of March 31, 2012, the company had total outstanding indebtedness of approximately $7.3 billion. However, it maintained a strong liquidity position with approximately $471.3 million in cash and cash equivalents and the ability to borrow up to $1.365 billion under its revolving credit facilities, providing ample resources for operations and strategic investments.

Yes, the company disclosed several risks, including potential impacts from tenant consolidation and mergers, new technologies that could reduce demand for tower space, risks associated with international operations and currency fluctuations, regulatory changes, dependence on a few large tenants, and the ongoing management of its significant debt obligations. An SEC subpoena related to tax accounting and reporting is also mentioned.