10-QPeriod: Q3 FY2017

AMERICAN TOWER CORP /MA/ Quarterly Report for Q3 Ended Sep 30, 2017

Filed October 31, 2017For Securities:AMT

Summary

American Tower Corporation (AMT) reported solid financial results for the nine months ended September 30, 2017. Total revenues increased by 17% year-over-year to $4.96 billion, driven by robust growth in all property segments, particularly Asia and Latin America, and a significant increase in the services segment. This revenue growth translated into a substantial increase in operating profit, which rose 16% for the property segment and 55% for the services segment. Net income attributable to common stockholders saw a significant 40% increase to $931.9 million for the nine months. The company also maintained a strong liquidity position with over $2.5 billion in total liquidity, including cash and credit facilities, and continued to actively manage its capital structure through debt issuances and repurchases. The company's strategic acquisitions, such as the FPS Towers acquisition in France and continued expansion in Latin America, are contributing positively to revenue and profit. Despite the increase in debt and interest expense due to these activities, AMT's key financial metrics such as Adjusted EBITDA and AFFO (Adjusted Funds From Operations) demonstrate strong operational performance and cash flow generation. The company reiterated its commitment to REIT distribution requirements and provided guidance on expected capital expenditures for the remainder of the year, signaling a focus on continued growth and shareholder returns.

Financial Highlights

50 data points
Beta

Revenue

$1.68B

Net Income

$317.30M

18.9% Net Margin

EPS (Diluted)

$0.69

Total Assets

$32.32B

Cash & Equivalents

$799.50M

Free Cash Flow

$663.80M

Financial Statements
Beta
Revenue$1.68B
SG&A Expenses$148.00M
Operating Expenses$1.12B
Operating Income$561.10M
Interest Expense$188.78M
Net Income$317.30M
EPS (Basic)$0.70
EPS (Diluted)$0.69
Shares Outstanding (Basic)429.28M
Shares Outstanding (Diluted)432.83M

Key Highlights

  • 1Total revenues increased 17% to $4.96 billion for the nine months ended September 30, 2017, compared to the same period in 2016.
  • 2Net income attributable to common stockholders increased 40% to $931.9 million for the nine months ended September 30, 2017.
  • 3Operating profit for the property segment increased 16% year-over-year, with the Asia and EMEA segments showing particularly strong growth.
  • 4The company completed strategic acquisitions, including FPS Towers in France, contributing to revenue and asset growth.
  • 5Adjusted EBITDA grew 17% to $3.06 billion for the nine months ended September 30, 2017.
  • 6Total liquidity remained strong at over $2.5 billion as of September 30, 2017, supported by cash and undrawn credit facilities.
  • 7The company repurchased $669.7 million of its common stock during the nine months ended September 30, 2017, as part of its share repurchase program.

Frequently Asked Questions

American Tower Corporation's primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies, municipalities, and tenants in various other industries. They also offer tower-related services in the United States.

For the nine months ended September 30, 2017, American Tower reported total revenues of $4.96 billion, an increase of 17% compared to $4.25 billion in the same period of 2016. This growth was driven by strong performance across all property segments and an increase in their services segment.

American Tower maintains a significant liquidity position with over $2.5 billion in cash and credit facilities as of September 30, 2017. They actively manage their capital structure, including issuing senior notes and utilizing credit facilities to fund acquisitions and general corporate purposes. The company also engages in share repurchases and pays dividends to maintain REIT status and return value to shareholders. They believe their operating cash flow, credit facilities, and ability to raise capital will be sufficient to meet their obligations.

Key growth drivers include increased tenant billings from colocations (adding new tenants or equipment on existing sites), contractual rent escalations, and revenue from newly acquired or constructed sites. Broader trends like growing wireless data usage, smartphone penetration, and the deployment of new technologies (like 4G and future 5G) are expected to continue driving demand for communications real estate.