Summary
This Form 8-K filing by American Tower Corporation (AMT) on August 7, 2006, primarily addresses two key areas. Firstly, it announces selected financial results for the second quarter ended June 30, 2006, via an accompanying press release. Secondly, and more significantly for investors, the company disclosed that a restatement of previously issued financial statements is likely due to an ongoing review of historical stock option granting practices. This review, conducted by a special committee of independent directors, preliminarily suggests that the accounting for certain stock option grants may be incorrect, potentially leading to additional non-cash charges for stock-based compensation expense. The company expects this situation will prevent the timely filing of its Form 10-Q for the quarter ended June 30, 2006.
Key Highlights
- 1American Tower Corporation is likely to restate its previously issued financial statements.
- 2The restatement is related to historical stock option granting practices and accounting.
- 3A special committee of independent directors is overseeing a review of these practices.
- 4Preliminary findings indicate that the recorded grant dates for some stock options may differ from their actual measurement dates for accounting purposes.
- 5Additional non-cash charges for stock-based compensation expense may be required.
- 6The company anticipates it will not be able to file its Form 10-Q for the quarter ended June 30, 2006, on time.
- 7The company does not expect material changes to historical revenues, non-option related operating expenses, or cash flow from operations due to this matter.