Summary
American Tower Corporation (AMT) reported its financial results for the quarter and nine months ended September 30, 2019. The company demonstrated strong top-line growth, with total operating revenues increasing by 9% year-over-year for the quarter and 7% for the nine-month period, driven primarily by its U.S. and Latin America property segments. Net income attributable to common stockholders saw a significant increase of 34% for the quarter and 39% for the nine months. Adjusted EBITDA also showed robust growth, up 12% for the quarter and 9% for the nine months, indicating solid operational performance. Key financial activities during the period included significant debt management, with substantial issuances of senior notes and repayments of existing debt, aiming to optimize the company's capital structure. The adoption of new lease accounting standards also impacted the balance sheet, introducing significant right-of-use assets and lease liabilities. The company continued its strategic investments in acquisitions and capital expenditures, laying the groundwork for future growth. Despite challenges such as carrier consolidation in India impacting revenue and gross margin in the Asia segment, AMT demonstrated resilience and a positive outlook for continued growth.
Financial Highlights
51 data points| Revenue | $1.95B |
| Cost of Revenue | $11.90M |
| Gross Profit | $1.94B |
| SG&A Expenses | $187.90M |
| Operating Expenses | $1.23B |
| Operating Income | $728.30M |
| Interest Expense | $201.30M |
| Net Income | $498.60M |
| EPS (Basic) | $1.13 |
| EPS (Diluted) | $1.12 |
| Shares Outstanding (Basic) | 442.76M |
| Shares Outstanding (Diluted) | 445.83M |
Key Highlights
- 1Total operating revenues increased by 9% to $1.95 billion for the third quarter of 2019 and by 7% to $5.66 billion for the first nine months of 2019, year-over-year.
- 2Net income attributable to common stockholders rose significantly to $498.6 million ($1.12 per diluted share) for the third quarter and $1.325 billion ($2.98 per diluted share) for the nine months, year-over-year.
- 3Adjusted EBITDA grew by 12% to $1.23 billion for the third quarter and by 9% to $3.53 billion for the nine months, reflecting strong operational performance.
- 4The company actively managed its debt profile, issuing new senior notes totaling $2.27 billion in the second quarter and $1.35 billion in early October (subsequent to quarter-end), while also repaying approximately $1.7 billion in senior notes and $1.5 billion in term loans during the first nine months.
- 5Adoption of new lease accounting standards resulted in the recognition of significant right-of-use assets ($7.2 billion) and operating lease liabilities ($6.9 billion) on the balance sheet as of September 30, 2019.
- 6Acquisitions remained a key growth driver, with $483.9 million invested in a U.S. acquisition and $183.8 million in other international acquisitions during the nine months, alongside the agreement to acquire Eaton Towers for approximately $1.85 billion.
- 7The Asia segment experienced revenue declines and margin compression due to carrier consolidation in India, impacting consolidated property revenue by $268.4 million for the nine months.