American Tower Corporation (NYSE:AMT) today reported financial results
for the quarter ended March 31, 2014.
Jim Taiclet, American Tower's Chief Executive Officer stated, “The
technology transition from 3G to 4G wireless services in the U.S. is in
full swing. We expect 4G device penetration to expand from 26% to 33%
during the course of 2014. This 3G to 4G transition, coupled with even
more applications, games, music and video services is putting
significant strain on wireless networks and is driving elevated demand
for tower space.
We are experiencing the benefit of this phenomenon, not only on our
legacy domestic sites, but also on the GTP assets we acquired last year,
which are already exceeding our original expectations. The resulting
strong growth in the U.S. business, augmented by our even faster growing
international segment has put us firmly on track to achieve double-digit
annual growth in AFFO per Share for the foreseeable future."
FIRST QUARTER 2014 OPERATING RESULTS OVERVIEW
American Tower generated the following operating results for the quarter
ended March 31, 2014 (unless otherwise indicated, all comparative
information is presented against the quarter ended March 31, 2013).
Total revenue increased 22.6% to $984.1 million and total rental and
management revenue increased 23.5% to $960.1 million. Total rental and
management revenue Core Growth was approximately 30.2%, and total rental
and management Organic Core Growth was approximately 11.5%. Please refer
to the selected statement of operations detail on page 12, which
highlights the items affecting all Core Growth percentages for the
quarter ended March 31, 2014.
Total rental and management Gross Margin increased 20.7% to $712.3
million. Total selling, general, administrative and development expense
was $110.0 million, including $24.1 million of stock-based compensation
expense. Adjusted EBITDA increased 22.1% to $640.5 million, Core Growth
in Adjusted EBITDA was 28.3%, and Adjusted EBITDA Margin was 65%.
Adjusted Funds From Operations (AFFO) increased 22.8% to $439.3 million,
AFFO per Share increased 22.2% to $1.10, and Core Growth in AFFO was
approximately 28.2%.
Operating income increased 18.0% to $353.6 million, and net income
attributable to American Tower Corporation increased 18.1% to $202.5
million. Net income attributable to American Tower Corporation per both
basic and diluted common share increased 18.6% to $0.51.
Cash provided by operating activities increased 20.9% to $476.6 million.
Segment Results
Domestic Rental and Management Segment – Domestic
rental and management segment revenue increased 23.3% to $635.8 million,
and Organic Core Growth in domestic rental and management segment
revenue was 9.2%. Domestic rental and management segment Gross Margin
increased 21.3% to $514.3 million. Domestic rental and management
segment Operating Profit increased 21.4% to $486.9 million, which
represented 73% of total Operating Profit. Domestic rental and
management segment Operating Profit Margin was 77%.
International Rental and Management Segment –
International rental and management segment revenue increased 23.9% to
$324.3 million, and Organic Core Growth in international rental and
management segment revenue was 16.1%. International rental and
management segment Gross Margin increased 19.2% to $198.0 million, while
international rental and management segment Operating Profit increased
23.6% to $168.8 million, which represented 25% of total Operating
Profit. International rental and management segment Operating Profit
Margin was 52% (70%, excluding the impact of $82.4 million of
pass-through revenues).
Network Development Services Segment – Network
development services segment revenue was $24.0 million. Network
development services segment Gross Margin was $14.2 million, and network
development services segment Operating Profit was $11.6 million, which
represented 2% of total Operating Profit. Network development services
segment Operating Profit Margin was 49%.
Please refer to “Non-GAAP and Defined Financial Measures” on pages 4 and
5 for definitions of Gross Margin, Operating Profit, Operating Profit
Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From
Operations, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New
Property Core Growth and Net Leverage Ratio. For additional financial
information, including reconciliations to GAAP measures, please refer to
the unaudited selected financial information on pages 10 through 13.
INVESTING OVERVIEW
Distributions – On April 25, 2014, the Company paid its
first quarter distribution of $0.32 per share, or a total of
approximately $126.6 million, to stockholders of record at the close of
business on April 10, 2014.
Cash Paid for Capital Expenditures – During the
first quarter of 2014, total capital expenditures of $213.9 million
included:
-
$111.2 million for discretionary capital projects, including spending
to complete the construction of 104 towers and the installation of 6
distributed antenna system networks and 126 shared generators
domestically, and the construction of 548 towers and the installation
of 9 distributed antenna system networks internationally;
-
$44.9 million to purchase land under the Company’s communications
sites;
-
$5.0 million for start-up capital projects in recently launched
markets;
-
$30.4 million for the redevelopment of existing communications sites
to accommodate new tenant equipment; and
-
$22.4 million for capital improvements and corporate capital
expenditures.
Cash Paid for Acquisitions – During the first
quarter of 2014, the Company spent $62.8 million for acquisitions, which
was primarily related to sites acquired during December 2013.
Subsequent to the end of the first quarter of 2014, the Company acquired
entities holding a portfolio of 60 communications sites and related
assets in the U.S., which are primarily leased to radio and television
broadcast tenants, from Richland Properties LLC (“Richland”). Total
consideration for the acquisition was approximately $385.9 million,
which included the assumption of approximately $196.5 million of secured
debt.
FINANCING OVERVIEW
Leverage – For the quarter ended March 31, 2014,
the Company’s Net Leverage Ratio was approximately 5.5x net debt (total
debt less cash and cash equivalents) to first quarter 2014 annualized
Adjusted EBITDA.
Liquidity – As of March 31, 2014, the Company had
approximately $3.2 billion of total liquidity, comprised of the ability
to borrow up to an aggregate of approximately $2.8 billion under its
three revolving credit facilities, net of any outstanding letters of
credit, and over $0.3 billion in cash and cash equivalents.
FULL YEAR 2014 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 May 1, 2014. 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's outlook is based on the following average foreign currency
exchange rates to 1.00 U.S. Dollar for the remainder of 2014: (a) 2.35
Brazilian Reais; (b) 550.00 Chilean Pesos; (c) 2,000.00 Colombian Pesos;
(d) 0.75 Euros; (e) 2.75 Ghanaian Cedi; (f) 61.00 Indian Rupees;
(g) 13.10 Mexican Pesos; (h) 2.80 Peruvian Soles; (i) 10.80 South
African Rand; and (j) 2,500.00 Ugandan Shillings.
As reflected in the table below, the Company has raised the midpoint of
its full year 2014 outlook for total rental and management revenue by
$70 million, Adjusted EBITDA by $50 million and AFFO by $35 million.
These estimates include the acquisition of Richland in the U.S.
|
($ in millions)
|
|
|
|
Full Year 2014
|
|
|
Midpoint
Growth
|
|
|
|
Midpoint Core
Growth
|
|
|
Total rental and management revenue
|
|
|
|
$
|
3,895
|
|
|
|
to
|
|
|
|
$
|
3,975
|
|
|
|
19.7
|
%
|
|
|
|
24.8
|
%
|
|
Adjusted EBITDA(1)
|
|
|
|
2,555
|
|
|
|
to
|
|
|
|
2,605
|
|
|
|
18.5
|
%
|
|
|
|
24.2
|
%
|
|
AFFO(1)
|
|
|
|
1,725
|
|
|
|
to
|
|
|
|
1,765
|
|
|
|
18.7
|
%
|
|
|
|
22.2
|
%
|
|
Net income
|
|
|
|
820
|
|
|
|
to
|
|
|
|
850
|
|
|
|
73.2
|
%
|
|
|
|
N/A
|
|
|
(1) See “Non-GAAP and Defined Financial Measures” below.
|
The Company’s outlook for total rental and management revenue reflects
the following at the midpoint:
-
Domestic rental and management segment revenue of $2,605 million and
Organic Core Growth of over 9%; and
-
International rental and management segment revenue of $1,330 million,
which includes approximately $342 million of pass-through revenue, and
Organic Core Growth of nearly 13%.
|
The calculation of midpoint Core Growth is as follows:
(Totals
may not add due to rounding.)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Rental and
Management
Revenue
|
|
Adjusted
EBITDA
|
|
AFFO
|
|
Outlook midpoint Core Growth
|
|
24.8%
|
|
24.2%
|
|
22.2%
|
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
(3.0)%
|
|
(2.3)%
|
|
(2.8)%
|
|
Impact of straight-line revenue and expense recognition
|
|
(2.1)%
|
|
(3.3)%
|
|
—
|
|
Impact of significant one-time items
|
|
—
|
|
(0.1)%
|
|
(0.7)%
|
|
Outlook midpoint growth
|
|
19.7%
|
|
18.5%
|
|
18.7%
|
|
|
|
|
|
|
|
|
|
Total Rental and Management Revenue Core Growth Components(1):
(Totals may not add due to rounding.)
|
|
Full Year 2014
|
|
Organic Core Growth
|
|
10%
|
|
New Property Core Growth
|
|
15%
|
|
Core Growth
|
|
25%
|
|
(1) Reflects growth at the midpoint of outlook ranges.
|
|
Outlook for Capital Expenditures:
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
(Totals may not add due to rounding.)
|
Full Year 2014
|
|
Discretionary capital projects(1)
|
$
|
415
|
|
|
to
|
|
|
$
|
475
|
|
Ground lease purchases
|
105
|
|
|
to
|
|
|
115
|
|
Start-up capital projects
|
40
|
|
|
to
|
|
|
50
|
|
Redevelopment
|
170
|
|
|
to
|
|
|
180
|
|
Capital improvement(2)
|
100
|
|
|
to
|
|
|
110
|
|
Corporate
|
20
|
|
|
—
|
|
|
20
|
|
Total
|
$
|
850
|
|
|
to
|
|
|
$
|
950
|
|
(1) Includes the construction of approximately 2,250 to 2,750 new
communications sites.
(2) Includes spending related to a
lighting and monitoring system upgrade in the U.S. of
approximately $15 million.
|
|
Reconciliations of Outlook for Net Income to Adjusted EBITDA:
|
|
|
($ in millions)
|
|
|
(Totals may not add due to rounding.)
|
Full Year 2014
|
|
Net income
|
$
|
820
|
|
|
|
to
|
|
|
$
|
850
|
|
|
Interest expense
|
595
|
|
|
|
to
|
|
|
578
|
|
|
Depreciation, amortization and accretion
|
965
|
|
|
|
to
|
|
|
985
|
|
|
Income tax provision
|
63
|
|
|
|
to
|
|
|
74
|
|
|
Stock-based compensation expense
|
80
|
|
|
|
—
|
|
|
80
|
|
|
Other, including other operating expenses, interest income,
loss
on retirement of long-term obligations, (income)
loss on
equity method investments and other expense (income)
|
32
|
|
|
|
to
|
|
|
38
|
|
|
Adjusted EBITDA
|
$
|
2,555
|
|
|
|
to
|
|
|
$
|
2,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Outlook for Net Income to AFFO:
|
|
|
($ in millions)
|
|
|
(Totals may not add due to rounding.)
|
Full Year 2014
|
|
Net income
|
$
|
820
|
|
|
|
to
|
|
|
$
|
850
|
|
|
Straight-line revenue
|
(114
|
)
|
|
|
—
|
|
|
(114
|
)
|
|
Straight-line expense
|
41
|
|
|
|
—
|
|
|
41
|
|
|
Depreciation, amortization and accretion
|
965
|
|
|
|
to
|
|
|
985
|
|
|
Stock-based compensation expense
|
80
|
|
|
|
—
|
|
|
80
|
|
|
Non-cash portion of tax provision
|
—
|
|
|
|
to
|
|
|
(4
|
)
|
|
Non-cash portion of interest expense
|
14
|
|
|
|
to
|
|
|
12
|
|
|
Other, including other operating expenses, loss on retirement
of
long-term obligations and other expense (income)
|
39
|
|
|
|
to
|
|
|
45
|
|
|
Capital improvement capital expenditures
|
(100
|
)
|
|
|
to
|
|
|
(110
|
)
|
|
Corporate capital expenditures
|
(20
|
)
|
|
|
—
|
|
|
(20
|
)
|
|
AFFO
|
$
|
1,725
|
|
|
|
to
|
|
|
$
|
1,765
|
|
Conference Call Information
American Tower will host a conference call today at 8:30 a.m. ET to
discuss its financial results for the three months ended March 31, 2014
and its outlook for 2014. 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: (866) 740-9153
International dial-in: (706)
645-9644
Passcode: 30664545
When available, a replay of the
call can be accessed until 11:59 p.m. ET on May 14, 2014. The replay
dial-in numbers are as follows:
U.S./Canada dial-in: (855) 859-2056
International
dial-in: (404) 537-3406
Passcode: 30664545
American Tower will
also sponsor a live simulcast and replay of the call on its website, www.americantower.com.
About American Tower
American Tower is a leading independent owner, operator and developer of
wireless and broadcast communications real estate. American Tower
currently owns and operates approximately 68,000 communications sites in
the United States, Brazil, Chile, Colombia, Costa Rica, Germany, Ghana,
India, Mexico, Panama, Peru, South Africa and Uganda. 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, AFFO, AFFO per Share, Core Growth, Organic Core
Growth, New Property Core Growth and Net Leverage Ratio. The Company
uses Funds From Operations as defined by the National Association of
Real Estate Investment Trusts (NAREIT), referred to herein as NAREIT FFO.
The Company defines Gross Margin as 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 defines Operating Profit as Gross Margin less selling,
general, administrative and development expense, excluding stock-based
compensation expense and corporate expenses. For reporting purposes, the
international rental and management segment Operating Profit and Gross
Margin also include interest income, TV Azteca, net. These measures of
Gross Margin and Operating Profit are also before interest income,
interest expense, loss on retirement of long-term obligations, other
(expense) income, net income (loss) attributable to non-controlling
interest, income (loss) on equity method investments and income taxes.
The Company defines Operating Profit Margin as the percentage that
results from dividing Operating Profit by revenue. The Company defines
Adjusted EBITDA as net income before income (loss) from discontinued
operations, net, income (loss) from equity method investments, income
tax provision (benefit), other income (expense), 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 defines Adjusted EBITDA
Margin as the percentage that results from dividing Adjusted EBITDA by
total revenue. NAREIT FFO is defined as net income before gains or
losses from the sale or disposal of real estate, real estate related
impairment charges and real estate related depreciation, amortization
and accretion, and including adjustments for (i) unconsolidated
affiliates and (ii) noncontrolling interest. The Company defines AFFO as
NAREIT FFO before (i) straight-line revenue and expense, (ii)
stock-based compensation expense, (iii) the non-cash portion of our 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,
(vi) other income (expense), (vii) loss on retirement of long-term
obligations, (viii) other operating income (expense), and adjustments
for (ix) unconsolidated affiliates, and (x) noncontrolling interest,
less cash payments related to capital improvements and cash payments
related to corporate capital expenditures. The Company defines AFFO per
Share as AFFO divided by the diluted weighted average common shares
outstanding. The Company defines Core Growth in total rental and
management revenue, Adjusted EBITDA and AFFO as the increase or
decrease, expressed as a percentage, resulting from a comparison of
financial results for a current period with corresponding financial
results for the corresponding period in a prior year, in each case,
excluding the impact of straight-line revenue and expense recognition,
foreign currency exchange rate fluctuations and significant one-time
items. The Company defines Organic Core Growth in rental and management
revenue as the increase or decrease, expressed as a percentage,
resulting from a comparison of financial results for a current period
with corresponding financial results for the corresponding period in a
prior year, in each case, excluding the impact of straight-line revenue
and expense recognition, foreign currency exchange rate fluctuations,
significant one-time items and revenue associated with new properties
that the Company has added to the portfolio since the beginning of the
prior period. The Company defines New Property Core Growth in rental and
management revenue as the increase or decrease, expressed as a
percentage, on the properties the Company has added to its portfolio
since the beginning of the prior period, in each case, excluding the
impact of straight-line revenue and expense recognition, foreign
currency exchange rate fluctuations and significant one-time items. The
Company defines Net Leverage Ratio as net debt (total debt, less cash
and cash equivalents) divided by last quarter annualized Adjusted
EBITDA. 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. The Company believes that these measures can assist in
comparing company performances on a consistent basis irrespective of
depreciation and amortization or capital structure. Depreciation and
amortization can vary significantly among companies depending on
accounting methods, particularly where acquisitions or non-operating
factors, including historical cost bases, are involved. Notwithstanding
the foregoing, the Company's measures of Gross Margin, Operating Profit,
Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT
FFO, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New
Property Core Growth and Net Leverage Ratio may not be comparable to
similarly titled measures used by other companies.
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 2014 outlook, foreign currency exchange rates and our expectation
regarding future growth of our AFFO per Share. 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) our business is subject
to government regulations and changes in current or future laws or
regulations could restrict our ability to operate our business as we
currently do; (4) our leverage and debt service obligations may
materially and adversely affect us; (5) increasing competition in the
tower industry may materially and adversely affect us; (6) our expansion
initiatives involve a number of risks and uncertainties that could
adversely affect our operating results, disrupt our operations or expose
us to additional risk if we are not able to successfully integrate
operations, assets and personnel; (7) 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; (8) 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; (9) we may fail to realize the growth
prospects and cost savings anticipated as a result of our acquisition of
MIP Tower Holdings LLC, the parent company of Global Tower Partners
(GTP); (10) new technologies or changes in a tenant’s business model
could make our tower leasing business less desirable and result in
decreasing revenues; (11) if we fail to remain qualified as a REIT, we
will be subject to tax at corporate income tax rates, which may
substantially reduce funds otherwise available; (12) we may be limited
in our ability to fund required distributions using cash generated
through our TRSs; (13) complying with REIT requirements may limit our
flexibility or cause us to forego otherwise attractive opportunities;
(14) certain of our business activities may be subject to corporate
level income tax and foreign taxes, which reduce our cash flows, and may
create deferred and contingent tax liabilities; (15) we may need
additional financing to fund capital expenditures, future growth and
expansion initiatives and to satisfy our REIT distribution requirements;
(16) if we are unable to protect our rights to the land under our
towers, it could adversely affect our business and operating results;
(17) 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; (18) restrictive covenants in the agreements related to our
securitization transactions, our credit facilities and our debt
securities could materially and adversely affect our business by
limiting flexibility; (19) we may incur goodwill and other intangible
asset impairment charges, which could result in a significant reduction
to our earnings; (20) our costs could increase and our revenues could
decrease due to perceived health risks from radio emissions, especially
if these perceived risks are substantiated; (21) we could have liability
under environmental and occupational safety and health laws; and (22)
our towers or data centers 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, 2013. We
undertake no obligation to update the information contained in this
press release to reflect subsequently occurring events or circumstances.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
|
|
|
|
March 31, 2014
|
|
|
December 31, 2013(1)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
333,439
|
|
|
|
$
|
293,576
|
|
|
Restricted cash
|
|
|
|
161,262
|
|
|
|
152,916
|
|
|
Short-term investments
|
|
|
|
34,430
|
|
|
|
18,612
|
|
|
Accounts receivable, net
|
|
|
|
227,155
|
|
|
|
151,084
|
|
|
Prepaid and other current assets
|
|
|
|
265,057
|
|
|
|
314,176
|
|
|
Deferred income taxes
|
|
|
|
21,638
|
|
|
|
22,401
|
|
|
Total current assets
|
|
|
|
1,042,981
|
|
|
|
952,765
|
|
|
Property and equipment, net
|
|
|
|
7,344,049
|
|
|
|
7,262,175
|
|
|
Goodwill
|
|
|
|
3,737,681
|
|
|
|
3,729,792
|
|
|
Other intangible assets, net
|
|
|
|
6,617,524
|
|
|
|
6,701,459
|
|
|
Deferred income taxes
|
|
|
|
270,994
|
|
|
|
262,529
|
|
|
Deferred rent asset
|
|
|
|
950,576
|
|
|
|
918,847
|
|
|
Notes receivable and other non-current assets
|
|
|
|
453,602
|
|
|
|
445,004
|
|
|
TOTAL
|
|
|
|
$
|
20,417,407
|
|
|
|
$
|
20,272,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
115,726
|
|
|
|
$
|
171,050
|
|
|
Accrued expenses
|
|
|
|
400,449
|
|
|
|
415,324
|
|
|
Distributions payable
|
|
|
|
127,286
|
|
|
|
575
|
|
|
Accrued interest
|
|
|
|
90,945
|
|
|
|
105,751
|
|
|
Current portion of long-term obligations
|
|
|
|
325,170
|
|
|
|
70,132
|
|
|
Unearned revenue
|
|
|
|
215,429
|
|
|
|
161,926
|
|
|
Total current liabilities
|
|
|
|
1,275,005
|
|
|
|
924,758
|
|
|
Long-term obligations
|
|
|
|
14,009,007
|
|
|
|
14,408,146
|
|
|
Asset retirement obligations
|
|
|
|
538,241
|
|
|
|
526,869
|
|
|
Other non-current liabilities
|
|
|
|
893,549
|
|
|
|
822,758
|
|
|
Total liabilities
|
|
|
|
16,715,802
|
|
|
|
16,682,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
3,984
|
|
|
|
3,976
|
|
|
Additional paid-in capital
|
|
|
|
5,153,402
|
|
|
|
5,130,616
|
|
|
Distributions in excess of earnings
|
|
|
|
(1,006,058
|
)
|
|
|
(1,081,467
|
)
|
|
Accumulated other comprehensive loss
|
|
|
|
(272,410
|
)
|
|
|
(311,220
|
)
|
|
Treasury stock
|
|
|
|
(207,740
|
)
|
|
|
(207,740
|
)
|
|
Total American Tower Corporation equity
|
|
|
|
3,671,178
|
|
|
|
3,534,165
|
|
|
Noncontrolling interest
|
|
|
|
30,427
|
|
|
|
55,875
|
|
|
Total equity
|
|
|
|
3,701,605
|
|
|
|
3,590,040
|
|
|
TOTAL
|
|
|
|
$
|
20,417,407
|
|
|
|
$
|
20,272,571
|
|
|
(1) December 31, 2013 balances have been revised to reflect
purchase accounting measurement period adjustments.
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
Rental and management
|
|
|
|
$
|
960,120
|
|
|
|
$
|
777,433
|
|
|
Network development services
|
|
|
|
23,969
|
|
|
|
25,295
|
|
|
Total operating revenues
|
|
|
|
984,089
|
|
|
|
802,728
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of operations (exclusive of items shown separately below):
|
|
|
|
|
|
|
|
|
|
|
Rental and management (including stock-based compensation expense of
$372 and $246, respectively)
|
|
|
|
250,835
|
|
|
|
191,295
|
|
|
Network development services (including stock-based compensation
expense of $132 and $192, respectively)
|
|
|
|
9,934
|
|
|
|
10,471
|
|
|
Depreciation, amortization and accretion
|
|
|
|
245,763
|
|
|
|
185,804
|
|
|
Selling, general, administrative and development expense
(including stock-based compensation expense of
$24,100 and
$20,604, respectively)
|
|
|
|
110,029
|
|
|
|
101,153
|
|
|
Other operating expenses
|
|
|
|
13,891
|
|
|
|
14,319
|
|
|
Total operating expenses
|
|
|
|
630,452
|
|
|
|
503,042
|
|
|
OPERATING INCOME
|
|
|
|
353,637
|
|
|
|
299,686
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
Interest income, TV Azteca, net
|
|
|
|
2,595
|
|
|
|
3,543
|
|
|
Interest income
|
|
|
|
2,018
|
|
|
|
1,714
|
|
|
Interest expense
|
|
|
|
(143,307
|
)
|
|
|
(111,766
|
)
|
|
Loss on retirement of long-term obligations
|
|
|
|
(238
|
)
|
|
|
(35,298
|
)
|
|
Other (expense) income (including unrealized foreign currency
(losses) gains of ($2,005) and $22,143, respectively)
|
|
|
|
(3,743
|
)
|
|
|
22,291
|
|
|
Total other expense
|
|
|
|
(142,675
|
)
|
|
|
(119,516
|
)
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
|
210,962
|
|
|
|
180,170
|
|
|
Income tax provision
|
|
|
|
(17,649
|
)
|
|
|
(19,222
|
)
|
|
NET INCOME
|
|
|
|
193,313
|
|
|
|
160,948
|
|
|
Net loss attributable to noncontrolling interest
|
|
|
|
9,186
|
|
|
|
10,459
|
|
|
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION
|
|
|
|
$
|
202,499
|
|
|
|
$
|
171,407
|
|
|
NET INCOME PER COMMON SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
|
Basic net income attributable to American Tower Corporation
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.43
|
|
|
Diluted net income attributable to American Tower Corporation
|
|
|
|
$
|
0.51
|
|
|
|
$
|
0.43
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
|
395,146
|
|
|
|
395,239
|
|
|
DILUTED
|
|
|
|
399,120
|
|
|
|
399,659
|
|
|
DISTRIBUTIONS DECLARED PER SHARE
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.26
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
193,313
|
|
|
|
$
|
160,948
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
24,604
|
|
|
|
21,042
|
|
|
Depreciation, amortization and accretion
|
|
|
|
245,763
|
|
|
|
185,804
|
|
|
Loss on early retirement of securitized debt
|
|
|
|
238
|
|
|
|
35,288
|
|
|
Other non-cash items reflected in statements of operations
|
|
|
|
5,060
|
|
|
|
(7,496
|
)
|
|
Increase in net deferred rent asset
|
|
|
|
(21,393
|
)
|
|
|
(26,806
|
)
|
|
(Increase) decrease in restricted cash
|
|
|
|
(8,347
|
)
|
|
|
22,583
|
|
|
Increase in assets
|
|
|
|
(43,449
|
)
|
|
|
(7,374
|
)
|
|
Increase in liabilities
|
|
|
|
80,793
|
|
|
|
10,047
|
|
|
Cash provided by operating activities
|
|
|
|
476,582
|
|
|
|
394,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Payments for purchase of property and equipment and construction
activities
|
|
|
|
(213,891
|
)
|
|
|
(123,905
|
)
|
|
Payments for acquisitions, net of cash acquired
|
|
|
|
(62,761
|
)
|
|
|
(245,094
|
)
|
|
Proceeds from sale of short-term investments and other non-current
assets
|
|
|
|
138,228
|
|
|
|
7,150
|
|
|
Payments for short-term investments
|
|
|
|
(151,263
|
)
|
|
|
(14,650
|
)
|
|
Deposits, restricted cash, investments and other
|
|
|
|
(1,369
|
)
|
|
|
(129
|
)
|
|
Cash used for investing activities
|
|
|
|
(291,056
|
)
|
|
|
(376,628
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Repayments of short-term borrowings
|
|
|
|
(172
|
)
|
|
|
—
|
|
|
Borrowings under credit facilities
|
|
|
|
—
|
|
|
|
249,000
|
|
|
Proceeds from issuance of senior notes, net
|
|
|
|
769,640
|
|
|
|
983,354
|
|
|
Proceeds from other long-term borrowings
|
|
|
|
3,033
|
|
|
|
—
|
|
|
Proceeds from issuance of Securities in securitization transaction,
net
|
|
|
|
—
|
|
|
|
1,778,496
|
|
|
Repayments of notes payable, credit facilities and capital leases
|
|
|
|
(916,632
|
)
|
|
|
(2,937,744
|
)
|
|
(Distributions to) contributions from noncontrolling interest
holders, net
|
|
|
|
(154
|
)
|
|
|
7,658
|
|
|
Purchases of common stock
|
|
|
|
—
|
|
|
|
(12,480
|
)
|
|
Proceeds from stock options
|
|
|
|
13,795
|
|
|
|
6,140
|
|
|
Payment for early retirement of securitized debt
|
|
|
|
—
|
|
|
|
(29,234
|
)
|
|
Deferred financing costs and other financing activities
|
|
|
|
(21,857
|
)
|
|
|
(10,561
|
)
|
|
Distributions
|
|
|
|
(554
|
)
|
|
|
—
|
|
|
Cash (used for) provided by financing activities
|
|
|
|
(152,901
|
)
|
|
|
34,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effect of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
|
|
7,238
|
|
|
|
21,051
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
|
39,863
|
|
|
|
73,088
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
|
293,576
|
|
|
|
368,618
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
|
|
333,439
|
|
|
|
441,706
|
|
|
CASH PAID FOR INCOME TAXES, NET OF REFUNDS
|
|
|
|
$
|
19,094
|
|
|
|
$
|
13,543
|
|
|
CASH PAID FOR INTEREST
|
|
|
|
$
|
154,497
|
|
|
|
$
|
95,251
|
|
|
UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT
(In thousands, except percentages)
|
|
Three months ended March 31, 2014
|
|
|
|
Rental and Management
|
|
|
Network
Development Services
|
|
|
Total
|
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
|
|
|
Segment revenues
|
|
$
|
635,779
|
|
|
|
$
|
324,341
|
|
|
|
$
|
960,120
|
|
|
|
$
|
23,969
|
|
|
|
$
|
984,089
|
|
|
Segment operating expenses (1)
|
|
121,509
|
|
|
|
128,954
|
|
|
|
250,463
|
|
|
|
9,802
|
|
|
|
260,265
|
|
|
Interest income, TV Azteca, net
|
|
—
|
|
|
|
2,595
|
|
|
|
2,595
|
|
|
|
—
|
|
|
|
2,595
|
|
|
Segment Gross Margin
|
|
514,270
|
|
|
|
197,982
|
|
|
|
712,252
|
|
|
|
14,167
|
|
|
|
726,419
|
|
|
Segment selling, general, administrative and development expense (1)
|
|
27,409
|
|
|
|
29,216
|
|
|
|
56,625
|
|
|
|
2,530
|
|
|
|
59,155
|
|
|
Segment Operating Profit
|
|
$
|
486,861
|
|
|
|
$
|
168,766
|
|
|
|
$
|
655,627
|
|
|
|
$
|
11,637
|
|
|
|
$
|
667,264
|
|
|
Segment Operating Profit Margin
|
|
77
|
%
|
|
|
52
|
%
|
|
|
68
|
%
|
|
|
49
|
%
|
|
|
68
|
%
|
|
Percent of total Operating Profit
|
|
73
|
%
|
|
|
25
|
%
|
|
|
98
|
%
|
|
|
2
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2013
|
|
|
|
Rental and Management
|
|
|
Network
Development Services
|
|
|
Total
|
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
|
|
|
Segment revenues
|
|
$
|
515,676
|
|
|
|
$
|
261,757
|
|
|
|
$
|
777,433
|
|
|
|
$
|
25,295
|
|
|
|
$
|
802,728
|
|
|
Segment operating expenses (1)
|
|
91,833
|
|
|
|
99,216
|
|
|
|
191,049
|
|
|
|
10,279
|
|
|
|
201,328
|
|
|
Interest income, TV Azteca, net
|
|
—
|
|
|
|
3,543
|
|
|
|
3,543
|
|
|
|
—
|
|
|
|
3,543
|
|
|
Segment Gross Margin
|
|
423,843
|
|
|
|
166,084
|
|
|
|
589,927
|
|
|
|
15,016
|
|
|
|
604,943
|
|
|
Segment selling, general, administrative and development expense (1)
|
|
22,898
|
|
|
|
29,535
|
|
|
|
52,433
|
|
|
|
2,901
|
|
|
|
55,334
|
|
|
Segment Operating Profit
|
|
$
|
400,945
|
|
|
|
$
|
136,549
|
|
|
|
$
|
537,494
|
|
|
|
$
|
12,115
|
|
|
|
$
|
549,609
|
|
|
Segment Operating Profit Margin
|
|
78
|
%
|
|
|
52
|
%
|
|
|
69
|
%
|
|
|
48
|
%
|
|
|
68
|
%
|
|
Percent of total Operating Profit
|
|
73
|
%
|
|
|
25
|
%
|
|
|
98
|
%
|
|
|
2
|
%
|
|
|
100
|
%
|
|
(1) Excludes stock-based compensation expense.
|
|
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to
rounding.)
SELECTED BALANCE SHEET DETAIL:
|
|
Long-term obligations summary, including current portion
|
March 31, 2014
|
|
Pro Forma
March 31, 2014 (1)
|
|
2012 Credit Facility
|
$
|
—
|
|
$
|
—
|
|
2013 Credit Facility
|
1,143,000
|
|
1,308,000
|
|
2013 Short-Term Credit Facility
|
—
|
|
—
|
|
2013 Term Loan
|
1,500,000
|
|
1,500,000
|
|
4.625% Senior Notes due 2015
|
599,834
|
|
599,834
|
|
7.000% Senior Notes due 2017
|
500,000
|
|
500,000
|
|
4.500% Senior Notes due 2018
|
999,548
|
|
999,548
|
|
3.400% Senior Notes due 2019
|
1,006,447
|
|
1,006,447
|
|
7.250% Senior Notes due 2019
|
296,872
|
|
296,872
|
|
5.050% Senior Notes due 2020
|
699,433
|
|
699,433
|
|
5.900% Senior Notes due 2021
|
499,429
|
|
499,429
|
|
4.700% Senior Notes due 2022
|
698,899
|
|
698,899
|
|
3.500% Senior Notes due 2023
|
992,695
|
|
992,695
|
|
5.000% Senior Notes due 2024
|
1,011,538
|
|
1,011,538
|
|
Total unsecured at American Tower Corporation
|
$
|
9,947,695
|
|
$
|
10,112,695
|
|
Secured Tower Revenue Securities, Series 2013-1A
|
500,000
|
|
500,000
|
|
Secured Tower Revenue Securities, Series 2013-2A
|
1,300,000
|
|
1,300,000
|
|
GTP Notes (2)
|
1,532,176
|
|
1,532,176
|
|
Unison Notes (3)
|
204,998
|
|
204,998
|
|
Richland Notes (1)
|
—
|
|
196,500
|
|
South African facility (4)
|
88,004
|
|
88,004
|
|
Colombian long-term credit facility (4)
|
68,519
|
|
68,519
|
|
Colombian bridge loans (4)
|
54,960
|
|
54,960
|
|
Mexican loan (4)
|
296,667
|
|
296,667
|
|
Shareholder loans (5)
|
263,983
|
|
263,983
|
|
Capital leases
|
77,175
|
|
77,175
|
|
Total secured or subsidiary debt
|
$
|
4,386,482
|
|
$
|
4,582,982
|
|
Total debt
|
$
|
14,334,177
|
|
$
|
14,695,677
|
|
Cash and cash equivalents
|
333,439
|
|
|
|
Net debt (total debt less cash and cash equivalents)
|
$
|
14,000,738
|
|
|
|
|
(1) Pro Forma for the Richland acquisition, which closed subsequent to
the end of the first quarter of 2014. The Company borrowed an additional
$165.0 million under its 2013 Credit Facility to fund the acquisition
and assumed $196.5 million in secured debt.
(2) The GTP Notes are
secured debt and were assumed in connection with the acquisition of GTP.
(3)
The Unison Notes are secured debt and were assumed as a result of the
acquisition of certain legal entities holding a portfolio of property
interests from Unison Holdings LLC and Unison Site Management II, L.L.C.
(4)
Denominated in local currency.
(5) Denominated in USD, reflects
balances attributable to minority shareholder loans in the Company’s
joint ventures in Colombia, Ghana and Uganda.
|
Calculation of Net Leverage Ratio ($ in thousands)
|
|
|
|
Three Months Ended
March 31, 2014
|
|
Total debt
|
|
|
|
$
|
14,334,177
|
|
Cash and cash equivalents
|
|
|
|
|
333,439
|
|
Numerator: net debt (total debt less cash and cash equivalents)
|
|
|
|
$
|
14,000,738
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
640,490
|
|
Denominator: annualized Adjusted EBITDA
|
|
|
|
2,561,960
|
|
Net Leverage Ratio
|
|
|
|
5.5x
|
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to
rounding.)
SELECTED BALANCE SHEET DETAIL (CONTINUED):
|
Share count rollforward: (in millions of shares)
|
|
Three Months Ended
March 31, 2014
|
|
Total common shares, beginning of period
|
|
394.9
|
|
Common shares repurchased
|
|
—
|
|
Common shares issued (1)
|
|
0.8
|
|
Total common shares outstanding, end of period (2)
|
|
395.7
|
|
|
(1) Related to stock-based compensation.
(2) As of March 31, 2014,
excludes (a) 3.8 million potentially dilutive shares associated with
vested and exercisable stock options with an average exercise price of
$46.31 per share, (b) 3.7 million potentially dilutive shares associated
with unvested stock options, and (c) 1.8 million potentially dilutive
shares associated with unvested restricted stock units.
SELECTED STATEMENT OF OPERATIONS DETAIL:
Total rental and management straight-line revenue and expense (1):
|
|
|
Three Months Ended
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
Total rental and management operations straight-line revenue
|
|
$
|
31,230
|
|
|
$
|
34,240
|
|
Total rental and management operations straight-line expense
|
|
$
|
9,478
|
|
|
$
|
7,115
|
(1) In accordance with GAAP, the Company recognizes consolidated rental
and management revenue and expense related to non-cancellable tenant and
ground lease agreements with fixed escalations on a straight-line basis,
over the applicable lease term. As a result, the Company’s revenue
recognized may differ materially from the amount of cash collected per
tenant lease, and the Company’s expense incurred may differ materially
from the amount of cash paid per ground lease. Additional information
regarding straight-line accounting can be found in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2013 in the section
entitled “Revenue Recognition,” in note 1, “Business and Summary of
Significant Accounting Policies” within the notes to the consolidated
financial statements. The above table sets forth a summary of total
rental and management straight-line revenue and expense, which
represents the non-cash revenue and expense recorded due to
straight-line recognition.
|
|
|
|
Three Months Ended
March 31,
|
|
International pass-through revenue detail:
|
|
|
2014
|
|
|
2013
|
|
Pass-through revenue
|
|
|
$
|
82,432
|
|
|
$
|
69,651
|
|
|
|
|
Three Months Ended
March 31,
|
|
Pre-paid rent detail (1):
|
|
|
2014
|
|
|
|
2013
|
|
|
Beginning balance
|
|
|
$
|
326,177
|
|
|
|
$
|
198,792
|
|
|
Cash
|
|
|
102,933
|
|
|
|
27,012
|
|
|
Amortization (2)
|
|
|
(24,848
|
)
|
|
|
(13,133
|
)
|
|
Ending balance
|
|
|
$
|
404,262
|
|
|
|
$
|
212,671
|
|
(1) Reflects capital contributions and prepayments associated with
long-term tenant leases and amortization of recognized GAAP revenue
associated with the leases corresponding to the capital contributions or
prepayments.
(2) Includes the impact of fluctuations in foreign currency exchange
rates.
|
|
|
|
|
Three Months Ended
March 31,
|
|
Selling, general, administrative and development expense breakout:
|
|
|
|
2014
|
|
|
|
2013
|
|
Total rental and management overhead
|
|
|
|
$
|
56,625
|
|
|
|
$
|
52,433
|
|
Network development services segment overhead
|
|
|
|
2,530
|
|
|
|
2,901
|
|
Corporate and development expenses
|
|
|
|
26,774
|
|
|
|
25,215
|
|
Stock-based compensation expense
|
|
|
|
24,100
|
|
|
|
20,604
|
|
Total
|
|
|
|
$
|
110,029
|
|
|
|
$
|
101,153
|
UNAUDITED SELECTED FINANCIAL INFORMATION
($ in thousands. Totals may not add due to rounding.)
SELECTED STATEMENT OF OPERATIONS DETAIL (CONTINUED):
The following table reflects the estimated impact of foreign currency
exchange rate fluctuations, straight-line revenue and expense
recognition and material one-time items on total rental and management
revenue, Adjusted EBITDA and AFFO:
The calculation of Core Growth is as follows:
|
Three Months Ended March 31, 2014
|
|
|
Total Rental
and Management
Revenue
|
|
|
|
Adjusted
EBITDA
|
|
|
|
AFFO
|
|
Core Growth
|
|
|
30.2
|
%
|
|
|
|
28.3
|
%
|
|
|
|
28.2
|
%
|
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(5.2
|
)%
|
|
|
|
(3.8
|
)%
|
|
|
|
(4.4
|
)%
|
|
Impact of straight-line revenue recognition
|
|
|
(1.5
|
)%
|
|
|
|
(2.4
|
)%
|
|
|
|
—
|
|
|
Impact of material one-time items
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1.0
|
)%
|
|
Reported growth
|
|
|
23.5
|
%
|
|
|
|
22.1
|
%
|
|
|
|
22.8
|
%
|
The components of Core Growth in rental and management revenue are as
follows:
|
Three Months Ended March 31, 2014
|
|
|
Domestic
|
|
|
|
International
|
|
|
|
Total
|
|
Organic Core Growth
|
|
|
9.2%
|
|
|
|
16.1
|
%
|
|
|
|
11.5
|
%
|
|
New Property Core Growth
|
|
|
16.8%
|
|
|
|
22.0
|
%
|
|
|
|
18.7
|
%
|
|
Core Growth
|
|
|
26.0%
|
|
|
|
38.1
|
%
|
|
|
|
30.2
|
%
|
SELECTED CASH FLOW DETAIL:
|
|
|
|
Three Months Ended
March 31,
|
|
Payments for purchase of property and equipment and construction
activities:
|
|
|
2014
|
|
|
|
2013
|
|
Discretionary - capital projects
|
|
|
$
|
111,172
|
|
|
|
$
|
57,270
|
|
Discretionary - ground lease purchases
|
|
|
44,860
|
|
|
|
14,800
|
|
Start-up capital projects
|
|
|
5,033
|
|
|
|
6,723
|
|
Redevelopment
|
|
|
30,372
|
|
|
|
21,712
|
|
Capital improvements
|
|
|
17,231
|
|
|
|
15,882
|
|
Corporate
|
|
|
5,223
|
|
|
|
7,518
|
|
Total
|
|
|
$
|
213,891
|
|
|
|
$
|
123,905
|
SELECTED PORTFOLIO DETAIL – OWNED SITES:
|
Tower Count (1):
|
|
As of
December 31, 2013
|
|
|
|
Constructed
|
|
|
Acquired
|
|
|
Adjustments
|
|
|
As of
March 31, 2014
|
|
United States
|
|
27,739
|
|
|
|
104
|
|
|
|
3
|
|
|
|
—
|
|
|
|
27,846
|
|
Brazil
|
|
6,746
|
|
|
|
7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,753
|
|
Chile
|
|
1,150
|
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,159
|
|
Colombia
|
|
3,461
|
|
|
|
36
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
3,496
|
|
Costa Rica
|
|
456
|
|
|
|
2
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
457
|
|
Germany
|
|
2,031
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,031
|
|
Ghana
|
|
1,969
|
|
|
|
10
|
|
|
|
12
|
|
|
|
1
|
|
|
|
1,992
|
|
India
|
|
11,529
|
|
|
|
435
|
|
|
|
—
|
|
|
|
(26
|
)
|
|
|
11,938
|
|
Mexico
|
|
8,369
|
|
|
|
16
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,385
|
|
Panama
|
|
57
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
58
|
|
Peru
|
|
498
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
498
|
|
South Africa
|
|
1,900
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,903
|
|
Uganda
|
|
1,164
|
|
|
|
30
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,194
|
|
Total
|
|
67,069
|
|
|
|
652
|
|
|
|
15
|
|
|
|
(26
|
)
|
|
|
67,710
|
(1) Excludes in-building and outdoor distributed antenna system networks.
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF
DEFINED FINANCIAL MEASURES
(In thousands, except per share data and percentages. Totals may not
add due to rounding.)
The reconciliation of net income to Adjusted EBITDA and the
calculation of Adjusted EBITDA Margin are as follows:
|
|
|
Three Months Ended
March 31,
|
|
|
|
2014
|
2013
|
|
Net income
|
|
$
|
193,313
|
|
|
$
|
160,948
|
|
|
Income tax provision
|
|
17,649
|
|
|
19,222
|
|
|
Other expense
|
|
3,743
|
|
|
(22,291
|
)
|
|
Loss on retirement of long-term obligations
|
|
238
|
|
|
35,298
|
|
|
Interest expense
|
|
143,307
|
|
|
111,766
|
|
|
Interest income
|
|
(2,018
|
)
|
|
(1,714
|
)
|
|
Other operating expenses
|
|
13,891
|
|
|
14,319
|
|
|
Depreciation, amortization and accretion
|
|
245,763
|
|
|
185,804
|
|
|
Stock-based compensation expense
|
|
24,604
|
|
|
21,042
|
|
|
Adjusted EBITDA
|
|
$
|
640,490
|
|
|
$
|
524,394
|
|
|
Divided by total revenue
|
|
984,089
|
|
|
802,728
|
|
|
Adjusted EBITDA Margin
|
|
65
|
%
|
|
65
|
%
|
The reconciliation of net income to NAREIT FFO and the calculation of
AFFO and AFFO per Share are presented below:
|
|
Three Months Ended
March 31,
|
|
|
2014
|
|
|
|
|
2013
|
|
|
Net Income
|
$
|
193,313
|
|
|
|
|
$
|
160,948
|
|
|
Real estate related depreciation, amortization and accretion
|
217,018
|
|
|
|
|
163,742
|
|
|
Losses from sale or disposal of real estate and real estate related
impairment charges
|
1,670
|
|
|
|
|
269
|
|
|
Adjustments for unconsolidated affiliates and noncontrolling interest
|
2,446
|
|
|
|
|
2,830
|
|
|
NAREIT FFO
|
414,447
|
|
|
|
|
327,789
|
|
|
Straight-line revenue
|
(31,230
|
)
|
|
|
|
(34,240
|
)
|
|
Straight-line expense
|
9,478
|
|
|
|
|
7,115
|
|
|
Stock-based compensation expense
|
24,604
|
|
|
|
|
21,042
|
|
|
Non-cash portion of tax provision
|
(1,445
|
)
|
|
|
|
5,679
|
|
|
Non-real estate related depreciation, amortization and accretion
|
28,745
|
|
|
|
|
22,062
|
|
|
Amortization of deferred financing costs, capitalized interest and
debt discounts and premiums (1)
|
3,417
|
|
|
|
|
7,527
|
|
|
Other expense (2)
|
3,743
|
|
|
|
|
(22,291
|
)
|
|
Loss on retirement of long-term obligations
|
238
|
|
|
|
|
35,298
|
|
|
Other operating expense (3)
|
12,221
|
|
|
|
|
14,050
|
|
|
Capital improvement capital expenditures
|
(17,231
|
)
|
|
|
|
(15,882
|
)
|
|
Corporate capital expenditures
|
(5,223
|
)
|
|
|
|
(7,518
|
)
|
|
Adjustments for unconsolidated affiliates and noncontrolling interest
|
$
|
(2,446
|
)
|
|
|
|
$
|
(2,830
|
)
|
|
AFFO
|
$
|
439,318
|
|
|
|
|
$
|
357,801
|
|
|
Divided by weighted average diluted shares outstanding
|
399,120
|
|
|
|
|
399,659
|
|
|
AFFO per Share
|
$
|
1.10
|
|
|
|
|
$
|
0.90
|
|
(1) Includes accrued non-cash interest expense attributable to
joint-venture loans and the amortization of debt premiums and discounts.
(2)
Primarily includes unrealized (gain) loss on foreign currency exchange
rate fluctuations.
(3) Primarily includes impairments and
transaction related costs.
Copyright Business Wire 2014