8-KEarnings & ResultsFinancial EventsExhibits & Filings

AMERICAN TOWER CORP /MA/ 8-K Report, Financial Results (Aug 7, 2006)

Filed August 7, 2006For Securities:AMT

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.

Frequently Asked Questions

The company is likely restating its financial statements due to issues identified with historical stock option granting practices and their related accounting. A preliminary review suggests that the accounting for certain stock options may not have been accurate, potentially requiring adjustments to stock-based compensation expense.

The primary financial impact is the potential for additional non-cash charges related to stock-based compensation expense. However, the company states that it does not expect this review to materially affect historical revenues, non-option related operating expenses, or cash flow from operations.

The company has not yet determined the full impact or the exact amount of charges. The investigation is ongoing, and the company does not expect to reach conclusions until after the deadline for its Form 10-Q for the quarter ended June 30, 2006. Therefore, the 10-Q filing will be delayed, and the restated financials will be filed as soon as practicable once conclusions are reached.

Yes, the company issued a press release on August 7, 2006, announcing selected financial results for the second quarter ended June 30, 2006. This press release is furnished as part of the 8-K filing.