[October 27, 2016] |
|
American Tower Corporation Reports Third Quarter 2016 Financial Results
American Tower Corporation (NYSE:AMT) today reported financial results
for the quarter ended September 30, 2016.
Jim Taiclet, American Tower's Chief Executive Officer stated, "In
response to rapid growth in mobile data usage, our tenants continue to
utilize a combination of incremental spectrum assets, advancing
technology and our diverse portfolio of real estate to expand their
mobile networks and deliver top quality service to their subscribers.
Our global asset base of nearly 144,000 towers and over 700 small cell
systems is uniquely positioned to benefit from these continuing
investments, and as a result, we were able to extend our long track
record of generating double digit growth in property revenue, Adjusted
EBITDA and Consolidated AFFO per Share in the third quarter."
CONSOLIDATED OPERATING RESULTS OVERVIEW American Tower
generated the following operating results for the quarter ended
September 30, 2016 (unless otherwise indicated, all comparative
information is presented against the quarter ended September 30, 2015).
($ in millions, except per share amounts)
|
|
|
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Q3 2016
|
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Growth Rate
|
Total revenue
|
|
|
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$
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1,515
|
|
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22.4
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%
|
Total property revenue
|
|
|
|
$
|
1,498
|
|
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23.5
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%
|
Total Tenant Billings Growth
|
|
|
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$
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216
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|
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21.1
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%
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Organic Tenant Billings Growth
|
|
|
|
$
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78
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|
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7.7
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%
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Property Gross Margin
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|
|
|
$
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1,016
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|
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18.1
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%
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Property Gross Margin %
|
|
|
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67.8
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%
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|
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Net income attributable to AMT common stockholders(1)
|
|
|
|
$
|
238
|
|
|
211.9
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%
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Net income attributable to AMT common stockholders per diluted share(1)
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$
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0.55
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|
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205.6
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%
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Adjusted EBITDA
|
|
|
|
$
|
915
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|
|
17.5
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%
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Adjusted EBITDA Margin %
|
|
|
|
60.4
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%
|
|
|
|
|
|
|
|
|
|
NAREIT Funds From Operations (FFO) attributable to AMT common
stockholders
|
|
|
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$
|
578
|
|
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56.0
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%
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Consolidated AFFO
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|
|
|
$
|
641
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|
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14.9
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%
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Consolidated AFFO per Share
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|
|
|
$
|
1.49
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|
|
13.7
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%
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AFFO attributable to AMT common stockholders
|
|
|
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$
|
612
|
|
|
10.8
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%
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AFFO attributable to AMT common stockholders per Share
|
|
|
|
$
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1.42
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|
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10.1
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%
|
|
|
|
|
|
|
|
Cash provided by operating activities
|
|
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$
|
667
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|
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31.5
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%
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Less: total cash capital expenditures(2)
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$
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161
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(22.3)
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%
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Free Cash Flow
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|
|
|
$
|
506
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|
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68.6
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%
|
_______________
(1)
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|
Growth rate includes the impact of unrealized foreign currency
losses of approximately $78 million in the prior-year period and a
one-time cash tax charge of approximately $93 million as part of a
tax election recorded in the prior-year period, pursuant to which
GTP REIT no longer operates as a separate REIT for federal and state
income tax purposes.
|
(2)
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|
Cash capital expenditures for Q3 2016 include $5.0 million of
payments on capital leases of property and equipment, which are
presented in the condensed consolidated statements of cash flows
included herein under Repayments of notes payable, credit
facilities, senior notes, term loan and capital leases.
|
Please refer to "Non-GAAP and Defined Financial Measures" below for
definitions and other information regarding the Company's use of
non-GAAP measures. For financial information and reconciliations to GAAP
measures, please refer to the "Unaudited Selected Consolidated Financial
Information" and "Unaudited Reconciliations to GAAP Measures and the
Calculation of Defined Financial Measures" below.
CAPITAL ALLOCATION OVERVIEW
Distributions - During the third quarter of 2016, the
Company declared the following regular cash distributions to its common
stockholders:
Common Stock Distributions
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|
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Q3 2016(1)
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Distribution per share
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|
|
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$
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0.55
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Aggregate amount (in millions)
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$
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234
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Year-over-year per share growth
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|
|
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19.6
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%
|
_______________
(1) The dividend declared was paid in the fourth quarter of 2016 to
stockholders of record as of the close of business on September 30, 2016.
In addition, the Company declared approximately $27 million in preferred
stock dividends during the third quarter of 2016.
Capital Expenditures - During the third quarter of
2016, total capital expenditures were $161 million, of which
approximately $30 million was for non-discretionary capital improvements
and corporate capital expenditures. For additional capital expenditure
details, please refer to the supplemental disclosure package available
on the Company's website.
Acquisitions and Other Transactions - During the
third quarter of 2016, the Company spent $93.4 million to acquire 351
communications sites primarily in the Company's international markets.
Subsequent to the end of the third quarter of 2016, the Company
announced that it had entered into a definitive agreement with Dutch
pension fund manager PGGM to form a joint venture.
LEVERAGE AND FINANCING OVERVIEW
Leverage - For the quarter ended September 30,
2016, the Company's Net Leverage Ratio was approximately 5.0x net debt
(total debt less cash and cash equivalents) to third quarter 2016
annualized Adjusted EBITDA.
Calculation of Net Leverage Ratio
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|
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($ in millions)
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|
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As of September 30, 2016
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Total debt
|
|
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$
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18,679
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Less: Cash and cash equivalents
|
|
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530
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Net Debt
|
|
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18,149
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Divided By: Third quarter annualized Adjusted EBITDA(1)
|
|
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3,660
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Net Leverage Ratio
|
|
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5.0x
|
_______________
(1) Q3 2016 Adjusted EBITDA multiplied by four.
Liquidity - As of September 30, 2016, the Company
had approximately $3.3 billion of total liquidity, consisting of over
$0.5 billion in cash and cash equivalents plus the ability to borrow an
aggregate of approximately $2.8 billion under its revolving credit
facilities, net of any outstanding letters of credit.
On September 30, 2016, the Company completed an offering of 2.250%
senior unsecured notes due 2022 and 3.125% senior unsecured notes due
2027, in principal amounts of $600.0 million and $400.0 million,
respectively. The proceeds from this offering were used to repay
existing indebtedness under the Company's term loan entered into in
October 2013, as amended.
FULL YEAR 2016 OUTLOOK
The following estimates are based on a number of assumptions that
management believes to be reasonable and reflect the Company's
expectations as of October 27, 2016. Actual results may differ
materially from these estimates as a result of various factors, and the
Company refers you to the cautionary language regarding
"forward-looking" statements included in this press release when
considering this information.
The Company is raising the midpoint of its full year 2016 outlook for
property revenue, net income, Adjusted EBITDA and Consolidated AFFO by
$50 million, $15 million, $25 million and $30 million, respectively.
This includes the impact of foreign currency exchange rate fluctuations
on property revenue, Adjusted EBITDA and Consolidated AFFO, as outlined
below.
The Company's revised outlook is based on the following average foreign
currency exchange rates to 1.00 U.S. Dollar for the fourth quarter of
2016: (a) 3.40 Brazilian Reais; (b) 680 Chilean Pesos; (c) 3,050
Colombian Pesos; (d) 0.91 Euros; (e) 4.10 Ghanaian Cedi; (f) 68.30
Indian Rupees; (g) 18.60 Mexican Pesos; (h) 330 Nigerian Naira; (i) 3.45
Peruvian Soles; (j) 15.00 South African Rand; and (k) 3,400 Ugandan
Shillings.
Based on these assumptions, the Company's current outlook reflects
favorable impacts of foreign currency fluctuations of approximately $23
million for total property revenue, $15 million for Adjusted EBITDA and
$8 million for Consolidated AFFO, as compared to the Company's
previously issued full year outlook. Additional information pertaining
to the impact of foreign currency fluctuations on the Company's outlook
has been provided in the supplemental disclosure package available on
its website. The impact of foreign currency fluctuations on net income
is not provided, as the impact on all components of the net income
measure cannot be calculated without unreasonable effort.
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2016 Outlook ($ in millions)
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|
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Full Year 2016
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Midpoint
Growth
|
Total property revenue(1)
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|
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$
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5,685
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|
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to
|
|
$
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5,735
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22.0%
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Net income
|
|
|
995
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|
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to
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1,025
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|
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50.3%
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Adjusted EBITDA
|
|
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3,530
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|
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to
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3,560
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15.6%
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Consolidated AFFO
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|
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2,455
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|
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to
|
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2,485
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|
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14.9%
|
_______________
(1) Includes U.S. Property revenue of $3,360 to $3,380 and International
Property revenue of $2,325 to $2,355, reflecting midpoint growth rates
of 6.7% and 53.7%, respectively.
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2016 Outlook for Total Property revenue, at the midpoint,
includes the
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|
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International
|
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Total
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following components(1): ($ in
millions,totals may not add due to rounding.)
|
|
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U.S. Property
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|
Property(2)
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|
Property
|
International pass-through revenue
|
|
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$ N/A
|
|
$
|
737
|
|
$
|
737
|
Straight-line revenue
|
|
|
78
|
|
51
|
|
129
|
_______________
(1)
|
|
For additional discussion regarding these components, please refer
to "Revenue Components" below.
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(2)
|
|
International property revenue reflects the Company's Latin America,
EMEA and Asia segments.
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Total Property
|
|
Adjusted
|
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Consolidated
|
2016 Outlook growth, at the midpoint, includes the following
components(1):
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|
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Revenue
|
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EBITDA
|
|
AFFO
|
Outlook midpoint growth
|
|
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22.0%
|
|
15.6%
|
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14.9%
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(2.8)%
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|
(2.6)%
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|
(2.7)%
|
Estimated impact of straight-line revenue and expense recognition
|
|
|
(1.3)%
|
|
(1.8)%
|
|
-%
|
Estimated impact of international pass-through revenue
|
|
|
5.2%
|
|
-%
|
|
-%
|
_______________
(1) Growth components for net income are not provided, as the impact of
each of the line items on the measure cannot be calculated without
unreasonable effort.
|
|
|
|
|
|
|
|
2016 Outlook growth, at the midpoint, includes the following
components(1):
|
|
|
|
|
International
|
|
|
(Totals may not add due to rounding.)
|
|
|
U.S. Property
|
|
Property(2)
|
|
Total Property
|
Organic Tenant Billings
|
|
|
5.8%
|
|
13.3%
|
|
7.8%
|
New Site Tenant Billings
|
|
|
3.2%
|
|
45.6%
|
|
14.5%
|
Total Tenant Billings Growth
|
|
|
8.9%
|
|
58.9%
|
|
22.3%
|
_______________
(1)
|
|
For additional discussion regarding the component growth rates,
please refer to "Revenue Components" below.
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(2)
|
|
International property revenue reflects the Company's Latin America,
EMEA and Asia segments.
|
|
|
|
|
|
|
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Outlook for Capital Expenditures:
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
(Totals may not add due to rounding.)
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|
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Full Year 2016
|
Discretionary capital projects(1)
|
|
|
$
|
170
|
|
|
to
|
|
$
|
200
|
Ground lease purchases
|
|
|
140
|
|
|
to
|
|
160
|
Start-up capital projects
|
|
|
95
|
|
|
to
|
|
115
|
Redevelopment
|
|
|
155
|
|
|
to
|
|
175
|
Capital improvement
|
|
|
110
|
|
|
to
|
|
120
|
Corporate
|
|
|
15
|
|
|
-
|
|
15
|
Total
|
|
|
$
|
685
|
|
|
to
|
|
$
|
785
|
_______________
(1) Includes the construction of approximately 1,750 to 2,250
communications sites globally, reflecting reduced expectations for new
site construction in India for the balance of the year.
|
Reconciliation of Outlook for Net Income to Adjusted EBITDA:
|
($ in millions)
|
|
|
|
(Totals may not add due to rounding.)
|
|
|
Full Year 2016
|
Net income
|
|
|
$
|
995
|
|
|
to
|
|
$
|
1,025
|
Interest expense
|
|
|
730
|
|
|
to
|
|
720
|
Depreciation, amortization and accretion
|
|
|
1,520
|
|
|
to
|
|
1,550
|
Income tax provision
|
|
|
133
|
|
|
to
|
|
122
|
Stock-based compensation expense
|
|
|
90
|
|
|
-
|
|
90
|
Other, including other operating expenses, interest income, gain
(loss) on retirement of long-term
|
|
|
|
|
|
|
|
|
obligations and other income (expense)
|
|
|
62
|
|
|
to
|
|
53
|
Adjusted EBITDA
|
|
|
$
|
3,530
|
|
|
to
|
|
$
|
3,560
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Outlook for Net Income to Consolidated AFFO:
|
($ in millions)
|
|
|
|
(Totals may not add due to rounding.)
|
|
|
Full Year 2016
|
Net income
|
|
|
$
|
995
|
|
|
to
|
|
$
|
1,025
|
|
Straight-line revenue
|
|
|
(129
|
)
|
|
-
|
|
(129
|
)
|
Straight-line expense
|
|
|
67
|
|
|
-
|
|
67
|
|
Depreciation, amortization and accretion
|
|
|
1,520
|
|
|
to
|
|
1,550
|
|
Stock-based compensation expense
|
|
|
90
|
|
|
-
|
|
90
|
|
Deferred portion of income tax
|
|
|
38
|
|
|
to
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other, including other operating expenses, amortization of
deferred financing costs, capitalized
|
|
|
|
|
|
|
|
|
|
interest, debt discounts and premiums, gain (loss) on retirement
of long-term obligations, other
|
|
|
|
|
|
|
|
|
|
income (expense), long-term deferred interest charges and
dividends on preferred stock
|
|
|
(1
|
)
|
|
to
|
|
(8
|
)
|
Capital improvement capital expenditures
|
|
|
(110
|
)
|
|
to
|
|
(120
|
)
|
Corporate capital expenditures
|
|
|
(15
|
)
|
|
-
|
|
(15
|
)
|
Consolidated AFFO
|
|
|
$
|
2,455
|
|
|
to
|
|
$
|
2,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information American Tower will host a
conference call today at 8:30 a.m. ET to discuss its financial results
for the quarter ended September 30, 2016 and its outlook for 2016.
Supplemental materials for the call will be available on the Company's
website, www.americantower.com.
The conference call dial-in numbers are as follows:
U.S./Canada dial-in: (800) 260-0712 International dial-in: (651)
291-1170 Passcode: 403366
When available, a replay of the call can be accessed until 11:59 p.m. ET
on November 10, 2016. The replay dial-in numbers are as follows:
U.S./Canada dial-in: (800) 475-6701 International dial-in: (320)
365-3844 Passcode: 403366
American Tower will also sponsor a live simulcast and replay of the call
on its website, www.americantower.com.
About American Tower American Tower, one of the largest
global REITs, is a leading independent owner, operator and developer of
multitenant communications real estate with a portfolio of over 144,000
communications sites. For more information about American Tower, please
visit the "Earnings Materials" and "Company & Industry Resources"
sections of our investor relations website at www.americantower.com.
Non-GAAP and Defined Financial Measures In addition to the
results prepared in accordance with generally accepted accounting
principles in the United States (GAAP) provided throughout this press
release, the Company has presented the following non-GAAP and defined
financial measures: Gross Margin, Operating Profit, Operating Profit
Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From
Operations (FFO) attributable to American Tower Corporation common
stockholders, Consolidated Adjusted Funds From Operations (AFFO), AFFO
attributable to American Tower Corporation common stockholders,
Consolidated AFFO per Share, AFFO attributable to American Tower
Corporation common stockholders per Share, Free Cash Flow, Net Debt and
Net Leverage Ratio. In addition, the Company presents: Tenant Billings,
Tenant Billings Growth, Organic Tenant Billings Growth and New Site
Tenant Billings Growth.
These measures are not intended to replace financial performance
measures determined in accordance with GAAP. Rather, they are presented
as additional information because management believes they are useful
indicators of the current financial performance of the Company's core
businesses and are commonly used across its industry peer group. As
outlined in detail below, the Company believes that these measures can
assist in comparing company performance on a consistent basis
irrespective of depreciation and amortization or capital structure,
while also providing valuable incremental insight into the underlying
operating trends of its business.
Depreciation and amortization can vary significantly among companies
depending on accounting methods, particularly where acquisitions or
non-operating factors, including historical cost basis, are involved.
Notwithstanding the foregoing, the Company's Non-GAAP and Defined
Financial measures may not be comparable to similarly titled measures
used by other companies.
Revenue Components
In addition to reporting total revenue, the Company believes that
providing transparency around the components of its revenue provides
investors with insight into the indicators of the underlying demand for,
and operating performance of, its real estate portfolio. Accordingly,
the Company has provided disclosure of the following revenue components:
(i) Tenant Billings, (ii) New Site Tenant Billings; (iii) Organic Tenant
Billings; (iv) International pass-through revenue; (v) Straight-line
revenue; (vi) Pre-paid amortization revenue; and (vii) Other revenue.
Tenant Billings: The majority of the Company's revenue is
generated from non-cancellable, long-term tenant leases. Revenue from
Tenant Billings reflects several key aspects of the Company's real
estate business: (i) "colocations/amendments" reflects new tenant leases
for space on existing towers and amendments to existing leases to add
additional tenant equipment; (ii) "escalations" reflects contractual
increases in billing rates, which are typically tied to fixed
percentages or a variable percentage based on a consumer price index;
(iii) "cancellations" reflects the impact of tenant lease terminations
or non-renewals or, in limited circumstances, when the lease rates on
existing leases are reduced; and (iv) "new sites" reflects the impact of
new property construction and acquisitions.
New Site Tenant Billings: Day-one Tenant Billings associated with
sites that have been built or acquired since the beginning of the
prior-year period. Incremental colocations/amendments, escalations or
cancellations that occur on these sites after the date of their initial
addition to our portfolio is not included in New Site Tenant Billings.
The Company believes providing New Site Tenant Billings enhances an
investor's ability to analyze our existing real estate portfolio growth
as well as our development program growth, as the Company's construction
and acquisition activities can drive variability in growth rates from
period to period.
Organic Tenant Billings: Tenant Billings on sites that the
Company has owned since the beginning of the prior-year period, as well
as Tenant Billings activity on new sites that occurred after the date of
their initial addition to the Company's portfolio.
International pass-through revenue: A portion of the Company's
pass-through revenue is based on power and fuel expense reimbursements
and therefore subject to fluctuations in fuel prices. As a result,
revenue growth rates may fluctuate depending on the market price for
fuel in any given period, which is not representative of the Company's
real estate business and its economic exposure to power and fuel costs.
Furthermore, this expense reimbursement mitigates the economic impact
associated with fluctuations in operating expenses, such as power and
fuel costs and land rents in certain of the Company's markets. As a
result, the Company believes that it is appropriate to provide insight
into the impact of pass-through revenue on certain revenue growth rates.
Straight-line revenue: Under GAAP, the Company recognizes revenue
on a straight-line basis over the term of the contract for certain of
its tenant leases. Due to the Company's significant base of
non-cancellable, long-term tenant leases, this can result in significant
fluctuations in growth rates upon tenant lease signings and renewals
(typically increases), when amounts billed or received upfront upon
these events are initially deferred. These signings and renewals are
only a portion of the Company's underlying business growth and can
distort the underlying performance of our Tenant Billings Growth. As a
result, the Company believes that it is appropriate to provide insight
into the impact of straight-line revenue on certain growth rates in
revenue and select other measures.
Pre-paid amortization revenue: The Company recovers a portion of
the costs it incurs for the redevelopment and development of its
properties from its tenants. These upfront payments are then amortized
over the initial term of the corresponding tenant lease. Given this
amortization is not necessarily directly representative of underlying
leasing activity on our real estate portfolio, (i.e.: does not have a
renewal option or escalation as our tenant leases do) the Company
believes that it is appropriate to provide insight into the impact of
pre-paid amortization revenue on certain revenue growth rates to provide
transparency into the underlying performance of our real estate business.
Foreign currency exchange impact: The majority of the Company's
international revenue and operating expenses are denominated in each
respective country's local currency. As a result, foreign currency
fluctuations may distort the underlying performance of our real estate
business from period to period, depending on the movement of foreign
currency exchange rates versus the U.S. Dollar. The Company believes it
is appropriate to quantify the impact of foreign currency exchange
fluctuations to its reported growth to provide transparency into the
underlying performance of its real estate business.
Other revenue: Typically an immaterial portion of the Company's
total revenue, Other revenue represents revenue not captured by the
above listed terms and can include items such as tenant settlements.
Non-GAAP and Defined Financial Measure
Definitions
Tenant Billings Growth: The increase or decrease resulting from a
comparison of Tenant Billings for a current period with Tenant Billings
for the corresponding prior-year period, in each case adjusted for
foreign currency exchange fluctuations. The Company believes this
measure provides valuable insight into the growth in recurring Tenant
Billings and underlying demand for its real estate portfolio.
Organic Tenant Billings Growth: The portion of Tenant Billings
Growth attributable to Organic Tenant Billings. The Company believes
that organic growth is a useful measure of its ability to add tenancy
and incremental revenue to its assets for the reported period, which
enables investors and analysts to gain additional insight into the
relative attractiveness, and therefore the value, of the Company's
property assets.
New Site Tenant Billings Growth: The portion of Tenant Billings
Growth attributable to New Site Tenant Billings. The Company believes
this measure provides valuable insight into the growth attributable to
Tenant Billings from recently acquired or constructed properties.
Gross Margin: Revenues less operating expenses, excluding
stock-based compensation expense recorded in costs of operations,
depreciation, amortization and accretion, selling, general,
administrative and development expense and other operating expenses. The
Company believes this measure provides valuable insight into the
site-level profitability of its assets.
Operating Profit: Gross Margin less selling, general,
administrative and development expense, excluding stock-based
compensation expense and corporate expenses. The Company believes this
measure provides valuable insight into the site-level profitability of
its assets while also taking into account the overhead expenses required
to manage each of its operating segments.
For segment reporting purposes, the Latin America property segment
Operating Profit and Gross Margin also include interest income, TV
Azteca, net. Operating Profit and Gross Margin are before interest
income, interest expense, gain (loss) on retirement of long-term
obligations, other income (expense), net income (loss) attributable to
noncontrolling interest and income tax benefit (provision).
Operating Profit Margin: The percentage that results from
dividing Operating Profit by revenue.
Adjusted EBITDA: Net income before income (loss) from equity
method investments, income tax benefit (provision), other income
(expense), gain (loss) on retirement of long-term obligations, interest
expense, interest income, other operating income (expense),
depreciation, amortization and accretion and stock-based compensation
expense. The Company believes this measure provides valuable insight
into the profitability of its operations while at the same time taking
into account the central overhead expenses required to manage its global
operations. In addition, it is a widely used performance measure across
our telecommunications real estate sector.
Adjusted EBITDA Margin: The percentage that results from dividing
Adjusted EBITDA by total revenue.
NAREIT Funds From Operations (FFO), as defined by the National
Association of Real Estate Investment Trusts (NAREIT), attributable to
American Tower Corporation common stockholders: Net income before
gains or losses from the sale or disposal of real estate, real estate
related impairment charges, real estate related depreciation,
amortization and accretion and dividends on preferred stock, and
including adjustments for (i) unconsolidated affiliates and (ii)
noncontrolling interests. The Company believes this measure provides
valuable insight into the operating performance of its property assets
by excluding the charges described above, particularly depreciation
expenses, given the high initial, up-front capital intensity of the
Company's operating model. In addition, it is a widely used performance
measure across our telecommunications real estate sector.
Consolidated Adjusted Funds From Operations (AFFO): NAREIT FFO
attributable to American Tower Corporation common stockholders before
(i) straight-line revenue and expense, (ii) stock-based compensation
expense, (iii) the deferred portion of its tax provision, (iv) non-real
estate related depreciation, amortization and accretion, (v)
amortization of deferred financing costs, capitalized interest, debt
discounts and premiums and long-term deferred interest charges, (vi)
other income (expense), (vii) gain (loss) on retirement of long-term
obligations, (viii) other operating income (expense), and adjustments
for (ix) unconsolidated affiliates and (x) noncontrolling interests,
less cash payments related to capital improvements and cash payments
related to corporate capital expenditures. The Company believes this
measure provides valuable insight into the operating performance of its
property assets by further adjusting the NAREIT FFO attributable to
American Tower Corporation common stockholders metric to exclude the
factors outlined above, which if unadjusted, may cause material
fluctuations in NAREIT FFO attributable to American Tower Corporation
common stockholders growth from period to period that would not be
representative of the underlying performance of our property assets in
those periods. In addition, it is a widely used performance measure
across our telecommunications real estate sector.
Adjusted Funds From Operations (AFFO) attributable to American Tower
Corporation common stockholders: Consolidated AFFO, excluding the
impact of noncontrolling interests on both NAREIT FFO attributable to
American Tower Corporation common stockholders as well as the other line
items included in the calculation of Consolidated AFFO. The Company
believes that providing this additional metric enhances transparency,
given a significantly larger minority interest component of its business
as a result of the Company's Viom transaction, which closed in the
second quarter of 2016.
Consolidated AFFO per Share: Consolidated AFFO divided by the
diluted weighted average common shares outstanding.
AFFO attributable to American Tower Corporation common stockholders
per Share: AFFO attributable to American Tower Corporation common
stockholders divided by the diluted weighted average common shares
outstanding.
Free Cash Flow: Cash provided by operating activities less total
cash capital expenditures, including payments on capital leases of
property and equipment. The Company believes that Free Cash Flow is
useful to investors as the basis for comparing our performance and
coverage ratios with other companies in its industry.
Net Debt: Total long-term debt less cash and cash equivalents.
Net Leverage Ratio: Net Debt divided by the quarter's annualized
Adjusted EBITDA (the quarter's Adjusted EBITDA multiplied by four). The
Company believes that including this calculation is important for
investors and analysts given it is a critical component underlying its
credit agency ratings.
Cautionary Language Regarding Forward-Looking Statements This
press release contains "forward-looking statements" concerning our
goals, beliefs, expectations, strategies, objectives, plans, future
operating results and underlying assumptions, and other statements that
are not necessarily based on historical facts. Examples of these
statements include, but are not limited to, statements regarding our
full year 2016 outlook, foreign currency exchange rates and our
expectation regarding the leasing demand for communications real estate.
Actual results may differ materially from those indicated in our
forward-looking statements as a result of various important factors,
including: (1) decrease in demand for our communications sites would
materially and adversely affect our operating results, and we cannot
control that demand; (2) if our tenants share site infrastructure to a
significant degree or consolidate or merge, our growth, revenue and
ability to generate positive cash flows could be materially and
adversely affected; (3) increasing competition for tenants in the tower
industry may materially and adversely affect our pricing; (4)
competition for assets could adversely affect our ability to achieve our
return on investment criteria; (5) our business is subject to government
and tax regulations and changes in current or future laws or regulations
could restrict our ability to operate our business as we currently do;
(6) our leverage and debt service obligations may materially and
adversely affect us, including our ability to raise additional financing
to fund capital expenditures, future growth and expansion initiatives
and to satisfy our distribution requirements; (7) our expansion
initiatives involve a number of risks and uncertainties, including those
related to integration of acquired or leased assets, that could
adversely affect our operating results, disrupt our operations or expose
us to additional risk; (8) our foreign operations are subject to
economic, political and other risks that could materially and adversely
affect our revenues or financial position, including risks associated
with fluctuations in foreign currency exchange rates; (9) new
technologies or changes in a tenant's business model could make our
tower leasing business less desirable and result in decreasing revenues;
(10) a substantial portion of our revenue is derived from a small number
of tenants, and we are sensitive to changes in the creditworthiness and
financial strength of our tenants; (11) if we fail to remain qualified
for taxation as a REIT, we will be subject to tax at corporate income
tax rates, which may substantially reduce funds otherwise available, and
even if we qualify for taxation as a REIT, we may face tax liabilities
that impact earnings and available cash flow; (12) complying with REIT
requirements may limit our flexibility or cause us to forego otherwise
attractive opportunities; (13) if we are unable to protect our rights to
the land under our towers, it could adversely affect our business and
operating results; (14) if we are unable or choose not to exercise our
rights to purchase towers that are subject to lease and sublease
agreements at the end of the applicable period, our cash flows derived
from such towers will be eliminated; (15) restrictive covenants in the
agreements related to our securitization transactions, our credit
facilities and our debt securities and the terms of our preferred stock
could materially and adversely affect our business by limiting
flexibility, and we may be prohibited from paying dividends on our
common stock, which may jeopardize our qualification for taxation as a
REIT; (16) our costs could increase and our revenues could decrease due
to perceived health risks from radio emissions, especially if these
perceived risks are substantiated; (17) we could have liability under
environmental and occupational safety and health laws; and (18) our
towers, data centers or computer systems may be affected by natural
disasters and other unforeseen events for which our insurance may not
provide adequate coverage. For additional information regarding factors
that may cause actual results to differ materially from those indicated
in our forward-looking statements, we refer you to the information
contained in Item 1A of our Form 10-K for the year ended December 31,
2015, under the caption "Risk Factors". We undertake no obligation to
update the information contained in this press release to reflect
subsequently occurring events or circumstances.
|
|
|
|
|
|
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
530,358
|
|
|
$
|
320,686
|
|
Restricted cash
|
|
|
150,655
|
|
|
142,193
|
|
Accounts receivable, net
|
|
|
273,907
|
|
|
227,354
|
|
Prepaid and other current assets
|
|
|
415,836
|
|
|
306,235
|
|
Total current assets
|
|
|
1,370,756
|
|
|
996,468
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
10,452,038
|
|
|
9,866,424
|
|
GOODWILL
|
|
|
4,997,224
|
|
|
4,091,805
|
|
OTHER INTANGIBLE ASSETS, net
|
|
|
11,557,964
|
|
|
9,837,876
|
|
DEFERRED TAX ASSET
|
|
|
197,914
|
|
|
212,041
|
|
DEFERRED RENT ASSET
|
|
|
1,265,700
|
|
|
1,166,755
|
|
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS
|
|
|
813,931
|
|
|
732,903
|
|
TOTAL
|
|
|
$
|
30,655,527
|
|
|
$
|
26,904,272
|
|
LIABILITIES
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
105,551
|
|
|
$
|
96,714
|
|
Accrued expenses
|
|
|
571,989
|
|
|
516,413
|
|
Distributions payable
|
|
|
236,608
|
|
|
210,027
|
|
Accrued interest
|
|
|
108,077
|
|
|
115,672
|
|
Current portion of long-term obligations
|
|
|
242,992
|
|
|
50,202
|
|
Unearned revenue
|
|
|
254,336
|
|
|
211,001
|
|
Total current liabilities
|
|
|
1,519,553
|
|
|
1,200,029
|
|
LONG-TERM OBLIGATIONS
|
|
|
18,436,144
|
|
|
17,068,807
|
|
ASSET RETIREMENT OBLIGATIONS
|
|
|
965,087
|
|
|
856,936
|
|
DEFERRED TAX LIABILITY
|
|
|
792,139
|
|
|
106,333
|
|
OTHER NON-CURRENT LIABILITIES
|
|
|
1,068,121
|
|
|
959,349
|
|
Total liabilities
|
|
|
22,781,044
|
|
|
20,191,454
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
REDEEMABLE NONCONTROLLING INTERESTS
|
|
|
1,100,202
|
|
|
-
|
|
EQUITY:
|
|
|
|
|
|
Preferred stock, Series A
|
|
|
60
|
|
|
60
|
|
Preferred stock, Series B
|
|
|
14
|
|
|
14
|
|
Common stock
|
|
|
4,284
|
|
|
4,267
|
|
Additional paid-in capital
|
|
|
9,817,815
|
|
|
9,690,609
|
|
Distributions in excess of earnings
|
|
|
(1,030,663
|
)
|
|
(998,535
|
)
|
Accumulated other comprehensive loss
|
|
|
(1,876,374
|
)
|
|
(1,836,996
|
)
|
Treasury stock
|
|
|
(207,740
|
)
|
|
(207,740
|
)
|
Total American Tower Corporation equity
|
|
|
6,707,396
|
|
|
6,651,679
|
|
Noncontrolling interests
|
|
|
66,885
|
|
|
61,139
|
|
Total equity
|
|
|
6,774,281
|
|
|
6,712,818
|
|
TOTAL
|
|
|
$
|
30,655,527
|
|
|
$
|
26,904,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
Property
|
|
|
$
|
1,497,936
|
|
|
$
|
1,212,849
|
|
|
$
|
4,191,779
|
|
|
$
|
3,429,264
|
|
Services
|
|
|
16,909
|
|
|
25,061
|
|
|
54,340
|
|
|
62,211
|
|
Total operating revenues
|
|
|
1,514,845
|
|
|
1,237,910
|
|
|
4,246,119
|
|
|
3,491,475
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Costs of operations (exclusive of items shown separately below):
|
|
|
|
|
|
|
|
|
|
Property (including stock-based compensation expense of $426, $396,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,325 and $1,218, respectively)
|
|
|
485,525
|
|
|
356,082
|
|
|
1,280,386
|
|
|
929,624
|
|
Services (including stock-based compensation expense of $172, $99,
$578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and $336, respectively)
|
|
|
5,712
|
|
|
9,307
|
|
|
22,007
|
|
|
22,863
|
|
Depreciation, amortization and accretion
|
|
|
397,999
|
|
|
341,096
|
|
|
1,137,398
|
|
|
932,972
|
|
Selling, general, administrative and development expense
(including stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation expense of $19,628, $17,850, $68,309 and $70,697,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
respectively)
|
|
|
131,537
|
|
|
114,832
|
|
|
405,086
|
|
|
354,460
|
|
Other operating expenses
|
|
|
14,998
|
|
|
15,668
|
|
|
37,509
|
|
|
40,891
|
|
Total operating expenses
|
|
|
1,035,771
|
|
|
836,985
|
|
|
2,882,386
|
|
|
2,280,810
|
|
OPERATING INCOME
|
|
|
479,074
|
|
|
400,925
|
|
|
1,363,733
|
|
|
1,210,665
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
Interest income, TV Azteca, net of interest expense of $279, $40,
$846 and $780,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
respectively
|
|
|
2,742
|
|
|
2,993
|
|
|
8,206
|
|
|
8,251
|
|
Interest income
|
|
|
6,376
|
|
|
4,503
|
|
|
16,378
|
|
|
11,871
|
|
Interest expense
|
|
|
(190,160
|
)
|
|
(149,787
|
)
|
|
(531,076
|
)
|
|
(446,228
|
)
|
Gain (loss) on retirement of long-term obligations
|
|
|
-
|
|
|
-
|
|
|
830
|
|
|
(78,793
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (including unrealized foreign currency losses of
$8,321, $77,864,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$3,544 and $107,871, respectively)
|
|
|
(12,260
|
)
|
|
(66,659
|
)
|
|
(25,894
|
)
|
|
(123,291
|
)
|
Total other expense
|
|
|
(193,302
|
)
|
|
(208,950
|
)
|
|
(531,556
|
)
|
|
(628,190
|
)
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
285,772
|
|
|
191,975
|
|
|
832,177
|
|
|
582,475
|
|
Income tax provision(1)
|
|
|
(22,037
|
)
|
|
(94,235
|
)
|
|
(94,671
|
)
|
|
(132,063
|
)
|
NET INCOME
|
|
|
263,735
|
|
|
97,740
|
|
|
737,506
|
|
|
450,412
|
|
Net loss (income) attributable to noncontrolling interests
|
|
|
774
|
|
|
5,259
|
|
|
(10,288
|
)
|
|
1,960
|
|
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS
|
|
|
264,509
|
|
|
102,999
|
|
|
727,218
|
|
|
452,372
|
|
Dividends on preferred stock
|
|
|
(26,781
|
)
|
|
(26,781
|
)
|
|
(80,344
|
)
|
|
(63,382
|
)
|
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCKHOLDERS
|
|
|
$
|
237,728
|
|
|
$
|
76,218
|
|
|
$
|
646,874
|
|
|
$
|
388,990
|
|
NET INCOME PER COMMON SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
Basic net income attributable to American Tower Corporation common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders
|
|
|
$
|
0.56
|
|
|
$
|
0.18
|
|
|
$
|
1.52
|
|
|
$
|
0.93
|
|
Diluted net income attributable to American Tower Corporation
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders
|
|
|
$
|
0.55
|
|
|
$
|
0.18
|
|
|
$
|
1.51
|
|
|
$
|
0.92
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
425,517
|
|
|
423,375
|
|
|
424,831
|
|
|
417,280
|
|
DILUTED
|
|
|
429,925
|
|
|
427,227
|
|
|
429,019
|
|
|
421,352
|
|
_______________
(1) 2015 amounts include the impact of a one-time cash tax charge of
approximately $93 million as part of the tax election related to the GTP
REIT.
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2016
|
|
2015
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
|
$
|
737,506
|
|
|
$
|
450,412
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
1,137,398
|
|
|
932,972
|
|
Stock-based compensation expense
|
|
|
70,212
|
|
|
72,251
|
|
(Gain) loss on early retirement of long-term obligations
|
|
|
(830
|
)
|
|
78,793
|
|
Other non-cash items reflected in statements of operations
|
|
|
120,170
|
|
|
143,412
|
|
Decrease in restricted cash
|
|
|
4,126
|
|
|
19,971
|
|
Increase in net deferred rent balances
|
|
|
(51,762
|
)
|
|
(69,019
|
)
|
Increase in assets
|
|
|
(8,863
|
)
|
|
(106,535
|
)
|
(Decrease) increase in liabilities
|
|
|
(29,526
|
)
|
|
21,358
|
|
Cash provided by operating activities
|
|
|
1,978,431
|
|
|
1,543,615
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Payments for purchase of property and equipment and construction
activities
|
|
|
(475,174
|
)
|
|
(518,018
|
)
|
Payments for acquisitions, net of cash acquired
|
|
|
(1,309,915
|
)
|
|
(1,616,205
|
)
|
Payment for Verizon transaction
|
|
|
(4,748
|
)
|
|
(5,058,895
|
)
|
Proceeds from sales of short-term investments and other non-current
assets
|
|
|
4,459
|
|
|
1,002,214
|
|
Payments for short-term investments
|
|
|
-
|
|
|
(1,011,320
|
)
|
Deposits, restricted cash, investments and other
|
|
|
(824
|
)
|
|
(2,053
|
)
|
Cash used for investing activities
|
|
|
(1,786,202
|
)
|
|
(7,204,277
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
(Repayments of) proceeds from of short-term borrowings, net
|
|
|
(7,337
|
)
|
|
8,282
|
|
Borrowings under credit facilities
|
|
|
1,529,477
|
|
|
5,727,831
|
|
Proceeds from issuance of senior notes, net
|
|
|
3,236,383
|
|
|
1,492,298
|
|
Proceeds from term loan
|
|
|
-
|
|
|
500,000
|
|
Proceeds from other borrowings
|
|
|
70,806
|
|
|
-
|
|
Proceeds from issuance of securities in securitization transaction
|
|
|
-
|
|
|
875,000
|
|
Repayments of notes payable, credit facilities, senior notes, term
loan and capital leases(1)
|
|
|
(4,116,645
|
)
|
|
(6,092,710
|
)
|
(Distributions to) contributions from noncontrolling interest
holders, net
|
|
|
(700
|
)
|
|
4,449
|
|
Proceeds from stock options and ESPP
|
|
|
76,601
|
|
|
29,324
|
|
Distributions paid on preferred stock
|
|
|
(80,344
|
)
|
|
(57,866
|
)
|
Distributions paid on common stock
|
|
|
(651,966
|
)
|
|
(516,012
|
)
|
Proceeds from the issuance of common stock, net
|
|
|
-
|
|
|
2,440,327
|
|
Proceeds from the issuance of preferred stock, net
|
|
|
-
|
|
|
1,337,946
|
|
Payment for early retirement of long-term obligations
|
|
|
(125
|
)
|
|
(86,107
|
)
|
Deferred financing costs and other financing activities
|
|
|
(29,423
|
)
|
|
(30,314
|
)
|
Cash provided by financing activities
|
|
|
26,727
|
|
|
5,632,448
|
|
Net effect of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
|
(9,284
|
)
|
|
2,126
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
209,672
|
|
|
(26,088
|
)
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
320,686
|
|
|
313,492
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
|
$
|
530,358
|
|
|
$
|
287,404
|
|
CASH PAID FOR INCOME TAXES, NET
|
|
|
$
|
71,868
|
|
|
$
|
130,231
|
|
CASH PAID FOR INTEREST
|
|
|
$
|
516,382
|
|
|
$
|
472,079
|
|
_______________
(1) Nine months ended September 30, 2016 includes $13.8 million of
payments on capital leases of property and equipment.
|
|
|
|
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT
|
($ in millions. Totals may not add due to rounding.)
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2016
|
|
|
|
Property
|
|
Services
|
|
Total
|
|
|
|
U.S.
|
|
Latin America
|
|
Asia
|
|
EMEA
|
|
Total International
|
|
Total Property
|
Segment revenues
|
|
|
$
|
837
|
|
|
$
|
260
|
|
|
$
|
270
|
|
|
$
|
131
|
|
|
$
|
661
|
|
|
$
|
1,498
|
|
|
$
|
17
|
|
|
$
|
1,515
|
|
Segment operating expenses(1)
|
|
|
189
|
|
|
88
|
|
|
154
|
|
|
54
|
|
|
296
|
|
|
485
|
|
|
6
|
|
|
491
|
|
Interest income, TV Azteca, net
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
3
|
|
|
-
|
|
|
3
|
|
Segment Gross Margin
|
|
|
$
|
648
|
|
|
$
|
175
|
|
|
$
|
116
|
|
|
$
|
77
|
|
|
$
|
367
|
|
|
$
|
1,016
|
|
|
$
|
11
|
|
|
$
|
1,027
|
|
Segment SG&A(1)
|
|
|
36
|
|
|
15
|
|
|
15
|
|
|
13
|
|
|
43
|
|
|
79
|
|
|
3
|
|
|
82
|
|
Segment Operating Profit
|
|
|
$
|
613
|
|
|
$
|
159
|
|
|
$
|
101
|
|
|
$
|
64
|
|
|
$
|
324
|
|
|
$
|
937
|
|
|
$
|
9
|
|
|
$
|
945
|
|
Segment Operating Profit Margin
|
|
|
73
|
%
|
|
61
|
%
|
|
37
|
%
|
|
49
|
%
|
|
49
|
%
|
|
63
|
%
|
|
51
|
%
|
|
62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Growth
|
|
|
3.6
|
%
|
|
19.0
|
%
|
|
338.4
|
%
|
|
4.9
|
%
|
|
63.2
|
%
|
|
23.5
|
%
|
|
(32.5
|
)%
|
|
22.4
|
%
|
Total Tenant Billings Growth
|
|
|
5.8
|
%
|
|
20.3
|
%
|
|
355.9
|
%
|
|
14.5
|
%
|
|
62.1
|
%
|
|
21.1
|
%
|
|
|
|
|
Organic Tenant Billings Growth
|
|
|
5.7
|
%
|
|
13.9
|
%
|
|
11.2
|
%
|
|
12.0
|
%
|
|
13.0
|
%
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Components(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior-Year Tenant Billings
|
|
|
$
|
744
|
|
|
$
|
152
|
|
|
$
|
36
|
|
|
$
|
91
|
|
|
$
|
279
|
|
|
$
|
1,023
|
|
|
|
|
|
Colocations/Amendments
|
|
|
33
|
|
|
10
|
|
|
5
|
|
|
5
|
|
|
20
|
|
|
53
|
|
|
|
|
|
Escalations
|
|
|
21
|
|
|
12
|
|
|
2
|
|
|
5
|
|
|
19
|
|
|
40
|
|
|
|
|
|
Cancellations
|
|
|
(13
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(18
|
)
|
|
|
|
|
Other
|
|
|
2
|
|
|
1
|
|
|
(0
|
)
|
|
1
|
|
|
1
|
|
|
3
|
|
|
|
|
|
Organic Tenant Billings
|
|
|
$
|
786
|
|
|
$
|
173
|
|
|
$
|
40
|
|
|
$
|
102
|
|
|
$
|
315
|
|
|
$
|
1,101
|
|
|
|
|
|
New Site Tenant Billings
|
|
|
1
|
|
|
10
|
|
|
125
|
|
|
2
|
|
|
137
|
|
|
138
|
|
|
|
|
|
Total Tenant Billings
|
|
|
$
|
787
|
|
|
$
|
182
|
|
|
$
|
165
|
|
|
$
|
104
|
|
|
$
|
451
|
|
|
$
|
1,239
|
|
|
|
|
|
Foreign Currency Exchange Impact(3)
|
|
|
-
|
|
|
(1
|
)
|
|
(5
|
)
|
|
(7
|
)
|
|
(14
|
)
|
|
(14
|
)
|
|
|
|
|
Total Tenant Billings (Current Period)
|
|
|
$
|
787
|
|
|
$
|
181
|
|
|
$
|
160
|
|
|
$
|
97
|
|
|
$
|
437
|
|
|
$
|
1,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-Line Revenue
|
|
|
20
|
|
|
9
|
|
|
6
|
|
|
1
|
|
|
15
|
|
|
36
|
|
|
|
|
|
Prepaid Amortization Revenue
|
|
|
23
|
|
|
0
|
|
|
-
|
|
|
0
|
|
|
0
|
|
|
24
|
|
|
|
|
|
Other Revenue
|
|
|
6
|
|
|
2
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
4
|
|
|
|
|
|
International Pass-Through Revenue
|
|
|
-
|
|
|
69
|
|
|
112
|
|
|
42
|
|
|
223
|
|
|
223
|
|
|
|
|
|
Foreign Currency Exchange Impact(4)
|
|
|
-
|
|
|
(1
|
)
|
|
(4
|
)
|
|
(8
|
)
|
|
(13
|
)
|
|
(13
|
)
|
|
|
|
|
Total Property Revenue (Current Period)
|
|
|
$
|
837
|
|
|
$
|
260
|
|
|
$
|
270
|
|
|
$
|
131
|
|
|
$
|
661
|
|
|
$
|
1,498
|
|
|
|
|
|
_______________
(1)
|
|
Excludes stock-based compensation expense.
|
(2)
|
|
All components of revenue, except those labeled current period, have
been translated at prior period foreign exchange rates.
|
(3)
|
|
Reflects foreign currency exchange impact on all components of Total
Tenant Billings.
|
(4)
|
|
Reflects foreign currency exchange impact on components of revenue,
other than Total Tenant Billings.
|
|
|
|
|
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT
(CONTINUED)
|
($ in millions. Totals may not add due to rounding.)
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2015
|
|
|
|
Property
|
|
Services
|
|
Total
|
|
|
|
U.S.
|
|
Latin America
|
|
Asia
|
|
EMEA
|
|
Total International
|
|
Total Property
|
Segment revenues
|
|
|
$
|
808
|
|
|
$
|
219
|
|
|
$
|
62
|
|
|
$
|
125
|
|
|
$
|
405
|
|
|
$
|
1,213
|
|
|
$
|
25
|
|
|
$
|
1,238
|
|
Segment operating expenses(1)
|
|
|
187
|
|
|
78
|
|
|
33
|
|
|
57
|
|
|
168
|
|
|
356
|
|
|
9
|
|
|
365
|
|
Interest income, TV Azteca, net
|
|
|
-
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
3
|
|
|
-
|
|
|
3
|
|
Segment Gross Margin
|
|
|
$
|
621
|
|
|
$
|
144
|
|
|
$
|
29
|
|
|
$
|
67
|
|
|
$
|
240
|
|
|
$
|
860
|
|
|
$
|
16
|
|
|
$
|
876
|
|
Segment SG&A(1)
|
|
|
31
|
|
|
14
|
|
|
6
|
|
|
13
|
|
|
33
|
|
|
65
|
|
|
4
|
|
|
68
|
|
Segment Operating Profit
|
|
|
$
|
589
|
|
|
$
|
129
|
|
|
$
|
23
|
|
|
$
|
54
|
|
|
$
|
206
|
|
|
$
|
796
|
|
|
$
|
12
|
|
|
$
|
808
|
|
Segment Operating Profit Margin
|
|
|
73
|
%
|
|
59
|
%
|
|
38
|
%
|
|
43
|
%
|
|
51
|
%
|
|
66
|
%
|
|
48
|
%
|
|
65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Growth
|
|
|
21.8
|
%
|
|
2.0
|
%
|
|
6.3
|
%
|
|
65.6
|
%
|
|
16.5
|
%
|
|
20.0
|
%
|
|
(7.4
|
)%
|
|
19.2
|
%
|
Total Tenant Billings Growth
|
|
|
21.9
|
%
|
|
38.6
|
%
|
|
22.7
|
%
|
|
84.9
|
%
|
|
46.9
|
%
|
|
29.0
|
%
|
|
|
|
|
Organic Tenant Billings Growth
|
|
|
6.3
|
%
|
|
12.1
|
%
|
|
12.1
|
%
|
|
13.8
|
%
|
|
12.5
|
%
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Components(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior-Year Tenant Billings
|
|
|
$
|
611
|
|
|
$
|
155
|
|
|
$
|
32
|
|
|
$
|
54
|
|
|
$
|
241
|
|
|
$
|
852
|
|
|
|
|
|
Colocations/Amendments
|
|
|
34
|
|
|
11
|
|
|
4
|
|
|
4
|
|
|
19
|
|
|
54
|
|
|
|
|
|
Escalations
|
|
|
19
|
|
|
9
|
|
|
1
|
|
|
4
|
|
|
13
|
|
|
32
|
|
|
|
|
|
Cancellations
|
|
|
(14
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(0
|
)
|
|
(3
|
)
|
|
(18
|
)
|
|
|
|
|
Other
|
|
|
(0
|
)
|
|
1
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
1
|
|
|
|
|
|
Organic Tenant Billings
|
|
|
$
|
649
|
|
|
$
|
174
|
|
|
$
|
36
|
|
|
$
|
62
|
|
|
$
|
271
|
|
|
$
|
920
|
|
|
|
|
|
New Site Tenant Billings
|
|
|
95
|
|
|
41
|
|
|
3
|
|
|
39
|
|
|
83
|
|
|
178
|
|
|
|
|
|
Total Tenant Billings
|
|
|
$
|
744
|
|
|
$
|
215
|
|
|
$
|
39
|
|
|
$
|
101
|
|
|
$
|
354
|
|
|
$
|
1,098
|
|
|
|
|
|
Foreign Currency Exchange Impact(3)
|
|
|
-
|
|
|
(63
|
)
|
|
(3
|
)
|
|
(10
|
)
|
|
(76
|
)
|
|
(76
|
)
|
|
|
|
|
Total Tenant Billings (Current Period)
|
|
|
$
|
744
|
|
|
$
|
152
|
|
|
$
|
36
|
|
|
$
|
91
|
|
|
$
|
279
|
|
|
$
|
1,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-Line Revenue
|
|
|
32
|
|
|
6
|
|
|
0
|
|
|
2
|
|
|
8
|
|
|
41
|
|
|
|
|
|
Prepaid Amortization Revenue
|
|
|
21
|
|
|
0
|
|
|
-
|
|
|
0
|
|
|
1
|
|
|
21
|
|
|
|
|
|
Other Revenue
|
|
|
11
|
|
|
3
|
|
|
(0
|
)
|
|
3
|
|
|
6
|
|
|
16
|
|
|
|
|
|
International Pass-Through Revenue
|
|
|
-
|
|
|
83
|
|
|
27
|
|
|
32
|
|
|
142
|
|
|
142
|
|
|
|
|
|
Foreign Currency Exchange Impact(4)
|
|
|
-
|
|
|
(25
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(30
|
)
|
|
(30
|
)
|
|
|
|
|
Total Property Revenue (Current Period)
|
|
|
$
|
808
|
|
|
$
|
219
|
|
|
$
|
62
|
|
|
$
|
125
|
|
|
$
|
405
|
|
|
$
|
1,213
|
|
|
|
|
|
_______________
(1)
|
|
Excludes stock-based compensation expense.
|
(2)
|
|
All components of revenue, except those labeled current period, have
been translated at prior period foreign exchange rates.
|
(3)
|
|
Reflects foreign currency exchange impact on all components of Total
Tenant Billings.
|
(4)
|
|
Reflects foreign currency exchange impact on components of revenue,
other than Total Tenant Billings.
|
UNAUDITED SELECTED CONSOLIDATED FINANCIAL INFORMATION
($ in thousands. Totals may not add due to rounding.)
The following table reflects the estimated impact of foreign currency
exchange rate fluctuations, pass-through revenue and straight-line
revenue and expense recognition on total property revenue, Adjusted
EBITDA and Consolidated AFFO growth rates.
Components of Growth(1)(2):
|
|
|
Property
|
|
Adjusted
|
|
Consolidated
|
Three months ended September 30, 2016
|
|
|
Revenue
|
|
EBITDA
|
|
AFFO
|
Growth
|
|
|
23.5
|
%
|
|
17.5
|
%
|
|
14.9
|
%
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(1.2
|
)%
|
|
(0.5
|
)%
|
|
(0.1
|
)%
|
Estimated impact of straight-line revenue and expense recognition
|
|
|
(1.1
|
)%
|
|
(1.2
|
)%
|
|
-
|
%
|
Estimated impact of international pass-through revenue
|
|
|
6.3
|
%
|
|
-
|
%
|
|
-
|
%
|
_______________
(1)
|
|
See "Non-GAAP and Defined Financial Measures" above.
|
(2)
|
|
Growth components for net income are not provided, as the impact of
each of the line items on the measure cannot be calculated without
unreasonable effort.
|
|
|
|
|
|
|
The reconciliation of net income to Adjusted EBITDA and the
calculation of Adjusted EBITDA Margin are as follows:
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
2016
|
|
2015
|
Net income
|
|
|
$
|
263,735
|
|
|
$
|
97,740
|
|
Income tax provision
|
|
|
22,037
|
|
|
94,235
|
|
Other expense
|
|
|
12,260
|
|
|
66,659
|
|
Interest expense
|
|
|
190,160
|
|
|
149,787
|
|
Interest income
|
|
|
(6,376
|
)
|
|
(4,503
|
)
|
Other operating expenses
|
|
|
14,998
|
|
|
15,668
|
|
Depreciation, amortization and accretion
|
|
|
397,999
|
|
|
341,096
|
|
Stock-based compensation expense
|
|
|
20,226
|
|
|
18,345
|
|
Adjusted EBITDA
|
|
|
$
|
915,039
|
|
|
$
|
779,027
|
|
Total revenue
|
|
|
1,514,845
|
|
|
1,237,910
|
|
Adjusted EBITDA Margin
|
|
|
60
|
%
|
|
63
|
%
|
|
|
|
|
|
|
|
|
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF
DEFINED FINANCIAL MEASURES
($ in thousands, except per share data. Totals may not add due to
rounding.)
The reconciliation of net income to NAREIT FFO attributable to
American Tower Corporation common stockholders and the calculation of
Consolidated AFFO, Consolidated AFFO per Share, AFFO attributable to
American Tower Corporation common stockholders and AFFO attributable to
American Tower Corporation common stockholders per Share are presented
below:
|
|
|
|
|
|
|
Three months ended September 30,
|
|
|
|
2016
|
|
2015
|
Net income
|
|
|
$
|
263,735
|
|
|
$
|
97,740
|
|
Real estate related depreciation, amortization and accretion
|
|
|
355,721
|
|
|
297,263
|
|
Losses from sale or disposal of real estate and real estate related
impairment charges
|
|
|
12,150
|
|
|
1,200
|
|
Dividends on preferred stock
|
|
|
(26,781
|
)
|
|
(26,781
|
)
|
Adjustments for unconsolidated affiliates and noncontrolling
interests
|
|
|
(27,224
|
)
|
|
804
|
|
NAREIT FFO attributable to AMT common stockholders
|
|
|
$
|
577,601
|
|
|
$
|
370,226
|
|
Straight-line revenue
|
|
|
(34,645
|
)
|
|
(38,798
|
)
|
Straight-line expense
|
|
|
17,814
|
|
|
16,433
|
|
Stock-based compensation expense
|
|
|
20,226
|
|
|
18,345
|
|
Deferred portion of income tax
|
|
|
582
|
|
|
(6,085
|
)
|
GTP REIT One-time charge(1)
|
|
|
-
|
|
|
93,044
|
|
Non-real estate related depreciation, amortization and accretion
|
|
|
42,278
|
|
|
43,833
|
|
Amortization of deferred financing costs, capitalized interest and
debt discounts and
|
|
|
|
|
|
|
|
premiums and long-term deferred interest charges
|
|
|
5,578
|
|
|
7,292
|
|
Other expense(2)
|
|
|
12,260
|
|
|
66,659
|
|
Other operating expense(3)
|
|
|
2,848
|
|
|
14,468
|
|
Capital improvement capital expenditures
|
|
|
(27,975
|
)
|
|
(22,202
|
)
|
Corporate capital expenditures
|
|
|
(2,508
|
)
|
|
(4,343
|
)
|
Adjustments for unconsolidated affiliates and noncontrolling
interests
|
|
|
27,224
|
|
|
(804
|
)
|
Consolidated AFFO
|
|
|
$
|
641,283
|
|
|
$
|
558,068
|
|
Adjustments for unconsolidated affiliates and noncontrolling
interests
|
|
|
(29,315
|
)
|
|
(5,834
|
)
|
AFFO attributable to AMT common stockholders
|
|
|
$
|
611,968
|
|
|
$
|
552,234
|
|
Divided by weighted average diluted shares outstanding
|
|
|
429,925
|
|
|
427,227
|
|
Consolidated AFFO per Share
|
|
|
$
|
1.49
|
|
|
$
|
1.31
|
|
AFFO attributable to AMT common stockholders per Share
|
|
|
$
|
1.42
|
|
|
$
|
1.29
|
|
_______________
(1)
|
|
In the third quarter of 2015, the Company filed a tax election,
pursuant to which GTP no longer operates as a separate REIT for
federal and state income tax purposes. In connection with this
election, the Company incurred a one-time cash tax charge during the
third quarter of 2015. As this charge is non-recurring, the Company
does not believe it is an indication of operating performance and
believes it is more meaningful to present its AFFO metrics excluding
its impact. Accordingly, the Company presents Consolidated AFFO and
AFFO attributable to American Tower Corporation common stockholders
for the three months ended September 30, 2015 excluding this charge.
|
(2)
|
|
Primarily includes realized and unrealized (gains) losses on foreign
currency exchange rate fluctuations.
|
(3)
|
|
Primarily includes integration and acquisition-related costs.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027005585/en/
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