10-QPeriod: Q1 FY2013

AMERICAN TOWER CORP /MA/ Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 1, 2013For Securities:AMT

Summary

American Tower Corporation (AMT) reported its first quarter 2013 financial results, showcasing significant revenue growth driven by both domestic and international rental and management operations. Total revenues increased by 15% year-over-year, largely due to the addition of new sites and organic growth from existing legacy sites, supported by strong demand for wireless services and network upgrades. The company's financial performance reflects continued strategic expansion, with substantial investments in acquiring and constructing new communication sites globally. While net income saw a decrease primarily due to a one-time loss on debt retirement, Adjusted EBITDA demonstrated robust growth of 13%, underscoring the operational strength and recurring revenue nature of its business model. AMT also continues to manage its capital structure effectively, undertaking a significant securitization transaction and a senior notes offering to optimize its debt profile.

Financial Highlights

52 data points
Beta

Revenue

$802.73M

Net Income

$171.41M

21.4% Net Margin

EPS (Diluted)

$0.43

Total Assets

$14.46B

Cash & Equivalents

$441.71M

Free Cash Flow

$394.04M

Financial Statements
Beta
Revenue$802.73M
SG&A Expenses$101.15M
Operating Expenses$503.04M
Operating Income$299.69M
Interest Expense$111.77M
Net Income$171.41M
EPS (Basic)$0.43
EPS (Diluted)$0.43
Shares Outstanding (Basic)395.24M
Shares Outstanding (Diluted)399.66M

Key Highlights

  • 1Total revenues increased by 15% to $802.7 million for the three months ended March 31, 2013, compared to $696.5 million in the prior year period.
  • 2Domestic rental and management segment revenue grew by 6% to $515.7 million, while international rental and management segment revenue surged by 33% to $261.8 million, driven by new site acquisitions and organic growth.
  • 3Adjusted EBITDA increased by 13% to $524.4 million, demonstrating strong operational performance and cash flow generation.
  • 4Net income attributable to American Tower Corporation decreased by 23% to $171.4 million, largely due to a $35.3 million loss on retirement of long-term obligations.
  • 5The company completed a significant securitization transaction, issuing $1.8 billion in Secured Tower Revenue Securities, Series 2013-1A and 2013-2A, and used proceeds to repay existing debt.
  • 6Cash flows from operating activities were $394.0 million, a slight decrease from the prior year, primarily due to increased cash paid for interest and income taxes.
  • 7Capital expenditures for investing activities increased to $376.6 million, driven by substantial acquisition activity, including the purchase of approximately 920 communication sites.

Frequently Asked Questions

Revenue growth was primarily driven by increases in both domestic and international rental and management segments. This growth was fueled by organic revenue from existing legacy sites (supported by new tenant leases and amendments) and substantial revenue from new sites acquired or constructed since January 1, 2012. The network development services segment also saw significant growth.

The decrease in net income was largely attributable to a one-time loss of $35.3 million incurred from the retirement of long-term obligations, specifically the repayment of Commercial Mortgage Pass-Through Certificates, Series 2007-1. Increases in interest expense and depreciation, amortization, and accretion also contributed to the net income decline.

The company actively managed its capital structure by completing a $1.8 billion securitization transaction and a $1.0 billion senior notes offering. Proceeds from these transactions were used to repay outstanding indebtedness under credit facilities and existing securitized debt, thereby optimizing the company's debt profile and extending maturities.

American Tower Corporation projected total capital expenditures between $550 million and $650 million for 2013. This investment is allocated across various areas including capital improvements, corporate expenditures, ground lease purchases, and discretionary projects like new site construction (expected to be 2,250 to 2,750 new sites) and acquisitions.