10-QPeriod: Q2 FY2021

AMERICAN TOWER CORP /MA/ Quarterly Report for Q2 Ended Jun 30, 2021

Filed July 29, 2021For Securities:AMT

Summary

American Tower Corporation (AMT) reported strong financial results for the second quarter and first half of 2021, demonstrating significant growth driven by strategic acquisitions and robust operational performance across its global tower portfolio. Total revenues increased by 20% year-over-year for the quarter and 14% for the six-month period, reflecting contributions from newly acquired sites and continued tenant activity such as collocations and amendments. The company successfully closed a substantial portion of the Telxius Acquisition, integrating approximately 27,000 new communications sites in Europe and Latin America, significantly expanding its global footprint and revenue base. Profitability metrics showed notable improvement, with Net Income attributable to American Tower Corporation common stockholders rising by 67% for the quarter and 61% for the six months. Adjusted EBITDA saw a healthy increase of 22% for the quarter and 17% for the six months, underscoring operational efficiency and the accretion from recent acquisitions. The company also strengthened its financial position through successful debt and equity offerings, raising substantial capital to fund its growth initiatives, including the Telxius Acquisition. Looking ahead, AMT remains focused on integrating its acquisitions, driving organic growth through collocations and amendments, and maintaining its position as a leading global provider of communication infrastructure.

Financial Highlights

51 data points
Beta

Revenue

$2.30B

Net Income

$746.30M

32.5% Net Margin

EPS (Diluted)

$1.65

Total Assets

$58.98B

Cash & Equivalents

$1.93B

Free Cash Flow

$674.00M

Financial Statements
Beta
Revenue$2.30B
SG&A Expenses$207.20M
Operating Expenses$1.45B
Operating Income$849.20M
Interest Expense$213.70M
Net Income$746.30M
EPS (Basic)$1.66
EPS (Diluted)$1.65
Shares Outstanding (Basic)450.62M
Shares Outstanding (Diluted)452.35M

Key Highlights

  • 1Total revenues increased by 20% to $2.3 billion for the three months ended June 30, 2021, and by 14% to $4.5 billion for the six months ended June 30, 2021, compared to the prior year periods.
  • 2Net income attributable to American Tower Corporation common stockholders grew significantly by 67% to $746.3 million for the quarter and by 61% to $1.4 billion for the six months.
  • 3Adjusted EBITDA increased by 22% to $1.5 billion for the three months and by 17% to $2.9 billion for the six months, indicating strong operational performance.
  • 4The company completed the acquisition of approximately 27,000 communications sites from Telxius in Europe and Latin America for approximately $8.8 billion, a significant expansion of its global portfolio.
  • 5AMT raised substantial capital through equity offerings ($2.4 billion) and senior note offerings ($1.4 billion USD and $2.4 billion EUR equivalent), enhancing financial flexibility.
  • 6Consolidated AFFO attributable to American Tower Corporation common stockholders grew by 20% for the quarter and 18% for the six months, reflecting strong cash flow generation.
  • 7The company maintained strong liquidity with $4.7 billion in total liquidity as of June 30, 2021, supported by available credit facilities and cash on hand.

Frequently Asked Questions

The Telxius Acquisition, which closed in June 2021, significantly expanded American Tower's global footprint with the addition of approximately 27,000 communications sites in Europe and Latin America. This transaction contributed approximately $42.0 million in revenue in Europe and $10.9 million in Latin America during the second quarter of 2021, and added $3.5 billion in goodwill. The acquisition was a primary driver of the substantial increase in total revenues and operating income for the period.

The company noted elevated churn rates in India due to ongoing evaluations by tenants regarding Adjusted Gross Revenue (AGR) fees and charges. In the U.S. & Canada segment, elevated churn is expected for several years due to contractual lease cancellations and non-renewals related to the T-Mobile Master Lease Agreement (MLA). While churn impacts revenue, the company expects its overall financial performance to remain robust, with these factors being closely monitored.

American Tower actively managed its capital structure by issuing approximately $3.8 billion in senior notes and raising $2.4 billion through a common stock offering to fund acquisitions, primarily the Telxius transaction. The company also amended and extended its credit facilities, increasing commitments and extending maturity dates. As of June 30, 2021, total outstanding indebtedness was $35.8 billion, with significant capacity available under its credit facilities.

Revenue growth in the U.S. & Canada segment was driven by a combination of factors. Tenant billings increased due to new sites acquired or constructed (primarily from the InSite Acquisition), leasing additional space on existing sites (colocations and amendments), and contractual escalations. Other revenue also saw a significant increase due to straight-line accounting adjustments, largely influenced by the T-Mobile MLA.