10-QPeriod: Q3 FY2015

AMERICAN TOWER CORP /MA/ Quarterly Report for Q3 Ended Sep 30, 2015

Filed October 29, 2015For Securities:AMT

Summary

American Tower Corporation (AMT) reported its third-quarter 2015 financial results, showcasing robust revenue growth driven by significant acquisitions and organic expansion. The company experienced a substantial increase in total revenues, up 19% year-over-year for the quarter, largely fueled by the successful integration of 11,448 sites from Verizon. This strategic acquisition, along with other international expansions in Nigeria, contributed significantly to both domestic and international rental and management segment revenues. While revenues grew, net income saw a decrease due to higher depreciation, amortization, income tax provisions, and other expenses, including the impact of foreign currency translation. AMT maintained a strong operational performance with an increase in Adjusted EBITDA, reflecting the profitability of its core leasing business. The company also provided an update on its capital structure, highlighting successful debt refinancing and equity offerings to support its growth initiatives, particularly the significant Verizon Transaction. The balance sheet shows an increase in property and equipment and intangible assets, reflecting continued investment in its infrastructure.

Financial Highlights

51 data points
Beta

Revenue

$1.24B

Net Income

$103.00M

8.3% Net Margin

EPS (Diluted)

$0.18

Total Assets

$26.93B

Cash & Equivalents

$287.40M

Free Cash Flow

$507.15M

Financial Statements
Beta
Revenue$1.24B
SG&A Expenses$114.83M
Operating Expenses$836.99M
Operating Income$400.93M
Interest Expense$149.79M
Net Income$103.00M
EPS (Basic)$0.18
EPS (Diluted)$0.18
Shares Outstanding (Basic)423.38M
Shares Outstanding (Diluted)427.23M

Key Highlights

  • 1Total revenues increased by 19% to $1.24 billion for the third quarter of 2015 compared to the prior year, driven by new site acquisitions and organic growth.
  • 2The Verizon Transaction, involving 11,448 domestic wireless communications sites, significantly contributed to revenue growth, adding approximately $97.4 million in the third quarter.
  • 3Adjusted EBITDA increased by 17% to $779 million for the third quarter of 2015, demonstrating strong operational profitability.
  • 4Net income attributable to common stockholders decreased by 53% to $76.2 million for the quarter, impacted by higher depreciation, amortization, income tax provision, and foreign currency translation losses.
  • 5The company successfully raised approximately $2.44 billion from a common stock offering and $1.34 billion from a Series B Preferred Stock offering to fund the Verizon Transaction.
  • 6Long-term obligations increased significantly to $16.98 billion as of September 30, 2015, reflecting the financing of strategic acquisitions.
  • 7American Tower expanded its international presence with the acquisition of 4,699 communications sites in Nigeria on July 1, 2015.

Frequently Asked Questions

Revenue growth was primarily driven by the addition of new sites from significant acquisitions, most notably the Verizon Transaction, which added 11,448 sites. Organic revenue growth from legacy sites, including new tenant leases and contractual rent escalations, also contributed.

The decrease in net income was mainly due to increased expenses, including higher depreciation, amortization, and accretion related to recent acquisitions. Additionally, there were higher income tax provisions and a significant negative impact from foreign currency translation losses.

American Tower financed the Verizon Transaction and other acquisitions through a combination of equity offerings (common and preferred stock), borrowings under its credit facilities, and cash on hand. The company also successfully refinanced certain debt obligations.

The company expects continued revenue growth driven by the ongoing demand for wireless communications infrastructure. Key trends supporting this include increasing smartphone penetration, growing data usage, the deployment of advanced wireless technologies (like 4G), and spectrum expansion by wireless carriers. The company also plans to continue strategically developing or acquiring new sites.