10-QPeriod: Q1 FY2014

AMERICAN TOWER CORP /MA/ Quarterly Report for Q1 Ended Mar 31, 2014

Filed May 1, 2014For Securities:AMT

Summary

American Tower Corporation (AMT) reported solid financial performance for the first quarter of 2014, with total revenues increasing by 23% year-over-year to $984.1 million. This growth was driven primarily by strong performance in both domestic and international rental and management segments, fueled by organic growth on existing sites and the addition of new sites through construction and acquisitions. The acquisition of MIP Tower Holdings LLC (MIPT) in late 2013 significantly contributed to this expansion, adding approximately 13,750 new sites to the portfolio. Net income attributable to American Tower Corporation rose by 20% to $202.5 million, or $0.51 per diluted share. Adjusted EBITDA also saw a healthy increase of 22% to $640.5 million, reflecting the company's ability to grow revenue while managing expenses effectively. The company maintained a strong liquidity position with approximately $3.2 billion in total liquidity as of March 31, 2014, and generated $476.6 million in cash flow from operating activities, demonstrating its ability to fund operations, investments, and required REIT distributions.

Financial Highlights

52 data points
Beta

Revenue

$984.09M

Net Income

$202.50M

20.6% Net Margin

EPS (Diluted)

$0.51

Total Assets

$20.42B

Cash & Equivalents

$333.44M

Free Cash Flow

$476.58M

Financial Statements
Beta
Revenue$984.09M
SG&A Expenses$110.03M
Operating Expenses$630.45M
Operating Income$353.64M
Interest Expense$143.31M
Net Income$202.50M
EPS (Basic)$0.51
EPS (Diluted)$0.51
Shares Outstanding (Basic)395.15M
Shares Outstanding (Diluted)399.12M

Key Highlights

  • 1Total revenues increased 23% year-over-year to $984.1 million, driven by robust growth in both domestic and international rental and management segments.
  • 2Net income attributable to American Tower Corporation increased 20% to $202.5 million, or $0.51 per diluted share.
  • 3Adjusted EBITDA grew 22% year-over-year to $640.5 million, indicating strong operational performance.
  • 4The company reported approximately $3.2 billion in total liquidity, comprised of $0.3 billion in cash and cash equivalents and substantial borrowing capacity under its credit facilities.
  • 5Cash provided by operating activities increased by $82.5 million to $476.6 million, demonstrating healthy cash generation.
  • 6The acquisition of MIP Tower Holdings LLC (MIPT) significantly contributed to portfolio expansion, adding approximately 13,750 new sites.
  • 7The company continues to manage its debt prudently, with total outstanding indebtedness of approximately $14.3 billion as of March 31, 2014, and reported compliance with all debt covenants.

Frequently Asked Questions

Revenue growth was primarily driven by an increase in both domestic and international rental and management segments. This included organic growth from existing sites (legacy sites) due to new tenant leases and contractual rent escalations, as well as significant revenue contribution from newly acquired sites, notably those added through the acquisition of MIP Tower Holdings LLC (MIPT) and other constructions or acquisitions since January 1, 2013.

The acquisition of MIPT, completed in October 2013, significantly contributed to the company's revenue and portfolio expansion. It added approximately 13,750 new sites (including domestic, Costa Rica, and Panama sites) and generated approximately $85.0 million in revenue during the first quarter of 2014, contributing to the overall 23% increase in total revenues.

As of March 31, 2014, American Tower Corp. maintained a strong liquidity position with approximately $3.2 billion in total liquidity, consisting of $0.3 billion in cash and cash equivalents and substantial borrowing capacity under its credit facilities. The company had total outstanding indebtedness of approximately $14.3 billion and reported compliance with all debt covenants. Financing activities during the quarter included issuing new senior notes and repaying existing credit facility balances.

The company is exposed to foreign currency exchange rate fluctuations, particularly from its international operations. For the first quarter of 2014, negative impacts from foreign currency translation were noted, especially related to the Brazilian Real, Ghanaian Cedi, and Indian Rupee. While the company has not historically engaged in significant currency hedging, it does have interest rate swap agreements for specific foreign debt exposures. The company also noted that approximately 32% of revenues and 39% of operating expenses were denominated in foreign currencies.