10-QPeriod: Q3 FY2021

AMERICAN TOWER CORP /MA/ Quarterly Report for Q3 Ended Sep 30, 2021

Filed October 28, 2021For Securities:AMT

Summary

American Tower Corporation (AMT) reported a strong third quarter ending September 29, 2021, with total revenues increasing by 22% year-over-year to $2.45 billion. This growth was primarily driven by significant increases in property and services revenue, fueled by the integration of acquired assets, particularly the Telxius acquisition, and organic growth through tenant billings, colocations, and contractual escalations across its global segments. The company demonstrated robust operational performance with an operating income of $827.5 million, up from $785.1 million in the prior year. Net income attributable to common stockholders surged by 57% to $723.0 million. This strong financial performance was supported by substantial investments in growth, highlighted by capital expenditures of $941.2 million and substantial acquisition activities, including the Telxius transaction which significantly expanded its international footprint. AMT also maintained a strong liquidity position with over $8.7 billion in total liquidity, including substantial availability under its credit facilities. The company continued its disciplined capital allocation, focusing on strategic acquisitions and organic growth while managing its debt profile through various financing activities, including senior note offerings. Overall, the report indicates a period of significant growth and strategic execution for American Tower.

Financial Highlights

51 data points
Beta

Revenue

$2.45B

Net Income

$723.00M

29.5% Net Margin

EPS (Diluted)

$1.58

Total Assets

$60.53B

Cash & Equivalents

$3.28B

Free Cash Flow

$1.78B

Financial Statements
Beta
Revenue$2.45B
SG&A Expenses$205.90M
Operating Expenses$1.63B
Operating Income$827.50M
Interest Expense$226.10M
Net Income$723.00M
EPS (Basic)$1.59
EPS (Diluted)$1.58
Shares Outstanding (Basic)455.22M
Shares Outstanding (Diluted)456.98M

Key Highlights

  • 1Total revenues increased by 22% year-over-year to $2.45 billion for the three months ended September 30, 2021.
  • 2Net income attributable to American Tower Corporation common stockholders increased by 57% to $723.0 million for the three months ended September 30, 2021.
  • 3Operating income grew to $827.5 million, up from $785.1 million in the prior year's comparable period.
  • 4The company made significant investments in acquisitions, notably the Telxius acquisition, which contributed substantially to revenue growth across its Europe and Latin America segments.
  • 5Cash flow from operating activities increased significantly to $4.14 billion for the nine months ended September 30, 2021.
  • 6Total liquidity remained strong at $8.7 billion as of September 30, 2021, with ample availability under its credit facilities.
  • 7The company completed multiple senior note offerings totaling billions of dollars in aggregate principal amount, further strengthening its capital structure and funding growth initiatives.

Frequently Asked Questions

Revenue growth was primarily driven by a 19% increase in total property revenues and a substantial 238% increase in services revenues. This growth was fueled by organic growth across its global segments, including tenant billings, colocations, contractual escalations, and new sites acquired through acquisitions, notably the Telxius acquisition which significantly expanded its presence in Europe and Latin America.

American Tower actively managed its debt and financing by completing several senior note offerings totaling billions of dollars, which were used to repay existing indebtedness and fund acquisitions. The company also amended and extended its credit facilities, increasing commitments and extending maturity dates, demonstrating a proactive approach to maintaining financial flexibility.

The Telxius acquisition, completed in stages throughout the period, was a major contributor to revenue growth, particularly in the Europe and Latin America segments. The acquired sites generated significant revenue and were integrated into American Tower's operations, demonstrating the company's ability to successfully execute large-scale strategic transactions.

The company maintained a strong liquidity position with $8.7 billion in total liquidity as of September 30, 2021, including over $5.4 billion available under its credit facilities. Management believes that cash generated from operations, combined with borrowing capacity, will be sufficient to fund upcoming obligations, capital expenditures, and distributions.