Why is American Tower reclassifying Kline Iron & Steel Co., Inc. as a discontinued operation?

American Tower committed to sell Kline Iron & Steel Co., Inc. in June 2003. As per generally accepted accounting principles (GAAP), entities designated for divestiture are reported as discontinued operations to provide a clearer view of the ongoing business activities.

What is the financial impact of this reclassification on past financial statements?

The filing updates the company's 2002 Form 10-K to show Kline as a discontinued operation for fiscal years 2000, 2001, and 2002. While this changes the presentation, the historical revenues and pre-tax income related to Kline for these periods are disclosed, with Kline's revenues being $93.0M (2002), $95.8M (2001), $46.0M (2000) and pre-tax income being $7.0M (2002), $5.3M (2001), $1.0M (2000).

Does this filing indicate any changes in American Tower's core business strategy?

This filing primarily addresses a change in financial reporting presentation due to the planned divestiture of a non-core subsidiary (Kline). It does not inherently signal a shift in the overall strategic direction of American Tower's primary business operations, which revolve around tower infrastructure.

Are there any new material financial results disclosed in this filing?

This report is not presenting new financial results in terms of performance for the current period. Instead, it is retrospectively adjusting the presentation of prior periods' financial statements to reflect Kline as a discontinued operation, consistent with the company's current reporting standards and its decision to divest the subsidiary.

AMT 8-K SEC Disclosure

Summary

This 8-K filing from American Tower Corporation (AMT) primarily serves to conform the presentation of historical financial data to reflect the divestiture of its subsidiary, Kline Iron & Steel Co., Inc. ("Kline"). Investors should note that in June 2003, AMT committed to sell Kline, which was previously part of its network development services segment. Consequently, Kline has been classified as a discontinued operation in the company's financial reporting, starting with the second quarter of 2003. This filing specifically updates the company's 2002 Form 10-K to align with this discontinued operation treatment for Kline. The updated financial statements now present Kline as a discontinued operation for the fiscal years 2000, 2001, and 2002. The filing also includes the required certifications from the CEO and CFO under the Sarbanes-Oxley Act, confirming the effectiveness of the company's disclosure controls and procedures.

Key Highlights

1American Tower Corp is reclassifying its subsidiary, Kline Iron & Steel Co., Inc. ("Kline"), as a discontinued operation.
2This reclassification is effective from the second quarter of 2003.
3The company is updating its 2002 Form 10-K to reflect Kline as a discontinued operation for fiscal years 2000, 2001, and 2002.
4Kline generated approximately $93.0 million in revenues in 2002, $95.8 million in 2001, and $46.0 million in 2000.
5Pre-tax income from Kline was approximately $7.0 million in 2002, $5.3 million in 2001, and $1.0 million in 2000.
6The company has reaffirmed the effectiveness of its disclosure controls and procedures.
7CEO and CFO certifications, as required by Sarbanes-Oxley Act, are included.

AMERICAN TOWER CORP /MA/ 8-K Report (Oct 3, 2003)

Summary

Key Highlights

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