10-QPeriod: Q3 FY2024

AMERICAN TOWER CORP /MA/ Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 29, 2024For Securities:AMT

Summary

American Tower Corporation (AMT) reported its third-quarter and year-to-date results for the period ending September 30, 2024. Total operating revenues remained flat year-over-year for the quarter at $2.52 billion, but showed a slight increase of 0.4% to $7.58 billion for the nine-month period. A significant event during the period was the completion of the sale of its India operations (ATC TIPL) for approximately $2.2 billion, which resulted in a substantial loss from discontinued operations of $1.21 billion for the quarter and $978.3 million for the nine-month period. This divestiture, alongside other operational factors, led to a net loss attributable to common stockholders of $(792.3) million ($1.69 per share) for the quarter, a notable shift from a net income of $586.9 million ($1.26 per share) in the prior year quarter. Despite the net loss, cash flow from operations remained strong, increasing to $4.09 billion for the first nine months, and the company maintained a robust liquidity position with over $10.9 billion in total liquidity.

Financial Statements
Beta
Revenue$2.52B
SG&A Expenses$227.70M
Operating Expenses$1.38B
Operating Income$1.14B
Net Income-$792.30M
EPS (Basic)$-1.70
EPS (Diluted)$-1.69
Shares Outstanding (Basic)467.20M
Shares Outstanding (Diluted)468.26M

Key Highlights

  • 1Total operating revenues for the third quarter were $2.52 billion, flat compared to the prior year quarter, while for the nine months ended September 30, 2024, revenues increased slightly to $7.58 billion.
  • 2The company completed the sale of its India operations (ATC TIPL) on September 12, 2024, for approximately $2.2 billion, which resulted in a significant loss from discontinued operations of $1.21 billion for the quarter and $978.3 million for the nine months.
  • 3Net loss attributable to American Tower Corporation common stockholders was $(792.3) million ($1.69 per diluted share) for the third quarter, compared to net income of $586.9 million ($1.26 per diluted share) in the prior year quarter.
  • 4Cash provided by operating activities increased to $4.09 billion for the nine months ended September 30, 2024, up from $3.58 billion in the prior year period, demonstrating resilient operational cash generation.
  • 5Adjusted EBITDA for the quarter was $1.69 billion, a slight decrease of 0.9% year-over-year, while for the nine months it increased by 0.8% to $5.12 billion.
  • 6AFFO (Adjusted Funds From Operations) attributable to common stockholders increased by 3% to $1.24 billion for the quarter and by 9% to $3.85 billion for the nine months, indicating strong underlying cash flow from continuing operations.
  • 7The company maintained a strong liquidity position with total liquidity of $10.9 billion as of September 30, 2024, including $8.76 billion available under its credit facilities.

Frequently Asked Questions

The sale of American Tower's India operations (ATC TIPL) on September 12, 2024, for approximately $2.2 billion, was a significant event. It resulted in a substantial 'Loss from discontinued operations, net of taxes' of $1.21 billion for the third quarter and $978.3 million for the nine-month period. This loss primarily includes the reclassification of cumulative translation adjustments and the loss on sale.

The company reported a net loss attributable to American Tower Corporation common stockholders of $(792.3) million ($1.69 per diluted share) for the third quarter of 2024, a significant change from a net income of $586.9 million ($1.26 per diluted share) in the same quarter of 2023. This shift was largely driven by the loss from discontinued operations related to the India sale, alongside foreign currency losses and an increased income tax provision.

Cash flow from operating activities remained strong, increasing to $4.09 billion for the nine months ended September 30, 2024. The company also reported total liquidity of $10.9 billion as of September 30, 2024, including significant availability under its credit facilities. This indicates a solid financial position to meet ongoing obligations and pursue growth opportunities.

Total liabilities decreased to $52.6 billion from $55.2 billion at the end of 2023. Long-term obligations decreased to $33.4 billion from $35.7 billion. The company made significant repayments and new issuances of senior notes, along with using proceeds from the India sale to repay existing indebtedness, indicating active debt management during the period.