CONSOLIDATED HIGHLIGHTS
Fourth Quarter 2015
-
Total revenue increased 22.3% to $1,280 million
-
Property revenue increased 21.5% to $1,251 million
-
Adjusted EBITDA increased 21.2% to $802 million
-
AFFO increased 22.7% to $542 million
Full Year 2015
-
Total revenue increased 16.4% to $4,772 million
-
Property revenue increased 16.8% to $4,680 million
-
Adjusted EBITDA increased 15.7% to $3,067 million
-
AFFO increased 18.5% to $2,150 million
American Tower Corporation (NYSE:AMT) today reported financial results
for the fourth quarter and full year ended December 31, 2015.
Jim Taiclet, American Tower’s Chief Executive Officer stated, “In 2015,
we once again delivered double digit growth in revenue, Adjusted EBITDA
and AFFO per Share while increasing our common stock dividend by nearly
30%. At the same time, we strengthened our positioning across our major
markets, including in our home U.S. market through the Verizon
transaction, in Brazil through our TIM transaction, in Nigeria where we
launched operations in connection with our acquisition of sites from
Airtel and most recently in India through our agreement to acquire a
majority interest in Viom.
In 2016, we expect to extend our proven track record of generating
double digit growth across our key metrics as we drive additional
organic revenue on our existing assets and selectively seek
complementary new investments, all while maintaining the strength of our
balance sheet.”
CONSOLIDATED OPERATING RESULTS OVERVIEW
American Tower generated the following operating results for the quarter
and year ended December 31, 2015 (unless otherwise indicated, all
comparative information is presented against the quarter and year ended
December 31, 2014, as applicable). During the fourth quarter of 2015,
the Company changed its reportable segments to divide its international
segment into three regional segments and changed the title of its rental
and management segment to “Property” and its network development
services segment to “Services”.
The Company now operates in five reportable segments: U.S. property,
Asia property, EMEA property, Latin America property and Services. The
Company believes this reporting structure provides more visibility into
its operating segments as they continue to grow and corresponds with
management’s current approach of allocating costs and resources,
managing the growth and profitability of the business and assessing its
operating performance. Detailed segment-level operating results are
provided below.
For the full year 2015, the Company exceeded the midpoint of its
previously issued outlook for total property revenue by approximately
$30 million and Adjusted EBITDA by approximately $22 million, driven by
strong operating results across its global footprint. Compared to the
prior year period, net income for the full year was impacted by a
one-time cash tax charge related to Global Tower Partners (“GTP”),
expenses associated with the early retirement of debt and the non-cash
impact of unfavorable foreign currency exchange rate fluctuations on
intercompany balances.
|
|
|
($ in millions, except percentages and per share amounts)
|
|
|
|
|
Q4 2015
|
|
Growth Rate
|
|
FY 2015
|
|
Growth Rate
|
|
Total property revenue
|
|
|
$
|
1,251
|
|
|
21.5
|
%
|
|
$
|
4,680
|
|
|
16.8
|
%
|
|
Total revenue
|
|
|
$
|
1,280
|
|
|
22.3
|
%
|
|
$
|
4,772
|
|
|
16.4
|
%
|
|
Property Gross Margin
|
|
|
$
|
909
|
|
|
19.1
|
%
|
|
$
|
3,418
|
|
|
15.4
|
%
|
|
Adjusted EBITDA
|
|
|
$
|
802
|
|
|
21.2
|
%
|
|
$
|
3,067
|
|
|
15.7
|
%
|
|
Net income attributable to AMT common stockholders
|
|
|
$
|
206
|
|
|
22.2
|
%
|
|
$
|
595
|
|
|
(25.7
|
)%
|
|
Net income attributable to AMT common stockholders per diluted share
|
|
|
$
|
0.48
|
|
|
14.3
|
%
|
|
$
|
1.41
|
|
|
(29.5
|
)%
|
|
Property revenue Core Growth(1)
|
|
|
|
|
25.9
|
%
|
|
|
|
23.1
|
%
|
|
Property revenue Organic Core Growth(2)
|
|
|
|
|
7.1
|
%
|
|
|
|
7.6
|
%
|
|
(1)
|
|
Property revenue Core Growth reflects revenue growth excluding the
impacts of straight-line and pass-through revenue, foreign currency
exchange rate fluctuations and significant one-time items.
|
|
(2)
|
|
Q4 2015 Organic Core Growth excludes revenue growth associated with
properties that the Company has added to the portfolio since the
beginning of Q4 2014. FY 2015 Organic Core Growth excludes revenue
growth attributable to sites added to the portfolio on or after
January 1, 2014.
|
|
|
|
|
For the full year 2015, the Company exceeded the midpoint of its
previously issued outlook for Adjusted Funds From Operations (AFFO) by
approximately $25 million, driven by strong growth in Adjusted EBITDA as
well as lower than forecasted cash interest expense and cash tax
payments.
|
|
|
|
($ in millions, except percentages and per share amounts)
|
|
|
|
|
|
|
|
Growth
|
|
|
|
Growth
|
|
|
|
|
Q4 2015
|
|
Rate
|
|
FY 2015
|
|
Rate
|
|
Funds From Operations (FFO)
|
|
|
$
|
530
|
|
32.2%
|
|
$
|
1,733
|
|
3.5%
|
|
AFFO
|
|
|
$
|
542
|
|
22.7%
|
|
$
|
2,150
|
|
18.5%
|
|
AFFO per Share
|
|
|
$
|
1.27
|
|
15.5%
|
|
$
|
5.08
|
|
11.9%
|
|
Cash provided by operating activities
|
|
|
$
|
639
|
|
13.2%
|
|
$
|
2,183
|
|
2.3%
|
|
Free Cash Flow(1)
|
|
|
$
|
429
|
|
36.6%
|
|
$
|
1,454
|
|
25.4%
|
|
(1)
|
|
Free cash flow is defined as cash provided by operating activities
less total capital expenditures.
|
Please refer to “Non-GAAP and Defined Financial Measures” below for
additional definitions. For additional financial information and
reconciliations to GAAP measures, please refer to the “Unaudited
Selected Financial Information” and “Unaudited Reconciliation to GAAP
measures and the calculation of Defined Financial Measures” below.
CAPITAL ALLOCATION OVERVIEW
Distributions – During the fourth quarter and full year
ended December 31, 2015, the Company declared the following regular cash
distributions to its common stockholders:
|
|
|
|
|
|
|
|
Common Stock Distributions
|
|
|
Q4 2015
|
|
FY 2015
|
|
Distribution per share
|
|
|
$0.49
|
|
$1.81
|
|
Aggregate amount (millions)(1)
|
|
|
$208
|
|
$766
|
|
Year-over-year per share growth
|
|
|
28.9%
|
|
29.3%
|
|
(1)
|
|
The dividend declared during the fourth quarter of 2015 was paid in
the first quarter of 2016 to stockholders of record as of the close
of business on December 16, 2015.
|
In addition, the Company paid $27 million in preferred stock dividends
during the fourth quarter and $85 million during the full year ended
December 31, 2015.
Capital Expenditures – During the fourth quarter of
2015, total capital expenditures were $211 million, and for the full
year, total capital expenditures were $729 million. For additional
capital expenditure details, please refer to the supplemental disclosure
package posted on the Company’s website.
Acquisitions – In the fourth quarter of 2015, the
Company spent approximately $345 million on acquisitions. This included
a payment of approximately $304 million in connection with our
previously closed acquisition of sites in Nigeria from Bharti Airtel
Limited (“Airtel”), as well as approximately $41 million for the
acquisition of 11 sites in the U.S. and 238 sites internationally. For
the full year, the Company spent approximately $7.02 billion for: (i)
the exclusive rights to operate and manage 11,286 sites in the U.S.,
(ii) 209 sites in the U.S. and (iii) 10,638 sites internationally. As of
December 31, 2015, the Company owned or operated over 100,000 towers and
nearly 500 distributed antenna system networks.
|
|
|
Summary of Significant 2015 Transactions:
|
|
# of Sites
|
|
Counterparty
|
|
Country
|
|
Day 1 Average Tenancy
|
|
Purchase Price (USD)
|
|
Closing Date(s)
|
|
11,449(1)
|
|
Verizon Communications
|
|
U.S.
|
|
~1.4
|
|
~$5.1 billion
|
|
March 27, 2015
|
|
5,483
|
|
TIM Celular S.A.
|
|
Brazil
|
|
~1.6
|
|
~$797 million
|
|
April 29, 2015(2)
|
|
4,716
|
|
Bharti Airtel Limited
|
|
Nigeria
|
|
~1.2
|
|
~$1.1 billion
|
|
July 1, 2015(2)
|
|
(1)
|
|
Includes the acquisition of 163 sites and the acquisition of
exclusive rights to operate and manage 11,286 sites.
|
|
(2)
|
|
Represents initial closing date.
|
On October 21, 2015, the Company entered into a definitive agreement to
acquire a 51% controlling ownership interest in Viom Networks Limited
(“Viom”), which owns and operates over 42,000 sites in India. The total
cash consideration for the Viom acquisition is expected to be
approximately 76 billion Indian Rupees (“INR”). The Company also expects
to assume approximately INR 49 billion of existing net debt at closing.
The Company anticipates consolidating the full financial results for
Viom upon closing, which is expected to occur in the first quarter of
2016, subject to certain conditions.
LEVERAGE AND FINANCING OVERVIEW
Leverage – For the quarter ended December 31, 2015,
the Company’s Net Leverage Ratio was approximately 5.2x net debt (total
debt less cash and cash equivalents) to fourth quarter 2015 annualized
Adjusted EBITDA.
|
|
|
|
|
|
|
Calculation of Net Leverage Ratio
|
|
|
|
Three Months Ended
|
|
($ in millions)
|
|
|
|
December 31, 2015
|
|
Net Debt
|
|
|
|
$
|
16,798
|
|
Last Quarter Annualized Adjusted EBITDA
|
|
|
|
3,206
|
|
Net Leverage Ratio
|
|
|
|
5.2x
|
|
|
|
|
|
|
Liquidity – As of December 31, 2015, the Company
had approximately $1.9 billion of total liquidity, consisting of over
$0.3 billion in cash and cash equivalents, plus the ability to borrow an
aggregate of over $1.5 billion under its revolving credit facilities,
net of any outstanding letters of credit.
Subsequent to the end of the fourth quarter of 2015, the Company issued
a total of $1.25 billion aggregate principal amount of unsecured senior
notes. The proceeds of the offering were used to repay existing
indebtedness under the Company’s 2013 senior unsecured credit facility
and for general corporate purposes.
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 February 26, 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’s current outlook reflects unfavorable impacts of foreign
currency fluctuations of approximately $258 million for total property
revenue, $140 million for Adjusted EBITDA and $122 million for AFFO,
relative to 2015 operating results. Information pertaining to the impact
of foreign currency fluctuations on the Company’s outlook has been
provided in the supplemental disclosure package posted on its website.
The Company’s outlook includes the estimated impact of the Viom
transaction, assuming a nine month contribution to operating results.
The portfolio is expected to contribute approximately $595 million in
revenue and $230 million in Adjusted EBITDA to full year 2016 results.
In addition, the costs associated with financing the transaction have
been reflected in the Company’s outlook.
The Company’s outlook is based on the following average foreign currency
exchange rates to 1.00 U.S. Dollar for the full year 2016: (a) 4.20
Brazilian Reais; (b) 720 Chilean Pesos; (c) 3,400 Colombian Pesos;
(d) 0.94 Euros; (e) 4.00 Ghanaian Cedi; (f) 67.80 Indian Rupees;
(g) 18.40 Mexican Pesos; (h) 200 Nigerian Naira; (i) 3.50 Peruvian
Soles; (j) 16.40 South African Rand; and (k) 3,500 Ugandan Shillings.
|
|
|
|
|
|
The Company’s outlook for 2016 reflects the following:
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midpoint
|
|
Midpoint Core
|
|
|
|
|
Full Year 2016
|
|
Growth
|
|
Growth(1)
|
|
Total property revenue
|
|
|
$
|
5,540
|
|
to
|
$
|
5,680
|
|
|
19.9%
|
|
22.1
|
%
|
|
Adjusted EBITDA(1)
|
|
|
3,430
|
|
to
|
3,530
|
|
|
13.5%
|
|
20.9
|
%
|
|
AFFO(1)
|
|
|
2,355
|
|
to
|
2,455
|
|
|
11.8%
|
|
17.9
|
%
|
|
Net income
|
|
|
1,010
|
|
to
|
1,120
|
|
|
58.5%
|
|
N/A
|
|
(1)
|
|
See “Non-GAAP and Defined Financial Measures” below.
|
|
|
|
|
The Company’s outlook for total property revenue reflects the
following, at the midpoint:
($ in millions)
|
|
|
|
|
|
Organic Core
|
|
Pass-through
|
|
Straight-line
|
|
|
Segment Revenue
|
|
Growth(1)
|
|
Revenue(2)
|
|
Revenue(2)
|
|
U.S. property revenue
|
$
|
3,355
|
|
~5.5%
|
|
$
|
—
|
|
$
|
60
|
|
Total international property revenue
|
2,255
|
|
~12%
|
|
690
|
|
41
|
|
Total property revenue
|
$
|
5,610
|
|
~7%
|
|
$
|
690
|
|
$
|
101
|
|
(1)
|
|
See “Non-GAAP and Defined Financial Measures” below.
|
|
(2)
|
|
Included in Segment Revenue totals but excluded from Core Growth and
Organic Core Growth.
|
|
|
|
|
|
|
|
|
|
|
The calculation of outlook midpoint Core Growth is as follows:
|
|
|
|
|
|
|
|
|
(Totals may not add due to rounding.)
|
|
|
|
|
|
|
|
|
|
|
|
Total Property
|
|
Adjusted
|
|
|
|
|
|
|
Revenue
|
|
EBITDA(1)
|
|
AFFO(1)
|
|
Outlook midpoint Core Growth
|
|
|
22.1%
|
|
20.9%
|
|
17.9%
|
|
Estimated impact of pass-through revenues
|
|
|
4.3%
|
|
—
|
|
—
|
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(4.5)%
|
|
(4.6)%
|
|
(5.7)%
|
|
Estimated impact of straight-line revenue and expense recognition
|
|
|
(1.9)%
|
|
(2.4)%
|
|
—
|
|
Estimated impact of significant one-time items
|
|
|
(0.2)%
|
|
(0.3)%
|
|
(0.4)%
|
|
Outlook midpoint growth
|
|
|
19.9%
|
|
13.5%
|
|
11.8%
|
|
(1)
|
|
See “Non-GAAP and Defined Financial Measures” below.
|
|
|
|
|
|
|
Total Property Revenue Core Growth Components(1):
|
|
|
|
|
(Totals may not add due to rounding.)
|
|
|
Full Year 2016
|
|
Organic Core Growth
|
|
|
~7%
|
|
New Property Core Growth(2)
|
|
|
~15%
|
|
Core Growth
|
|
|
~22%
|
|
(1)
|
|
Reflects growth at the midpoint of outlook ranges.
|
|
(2)
|
|
Reflects revenue growth at sites that have been under American
Tower’s ownership or control for less than 12 months.
|
|
|
|
|
|
Outlook for Capital Expenditures:
|
|
($ in millions)
|
|
|
|
|
|
|
(Totals may not add due to rounding.)
|
|
|
Full Year 2016
|
|
Discretionary capital projects(1)
|
|
|
$
|
170
|
|
to
|
$
|
200
|
|
Ground lease purchases
|
|
|
130
|
|
to
|
150
|
|
Start-up capital projects
|
|
|
90
|
|
to
|
110
|
|
Redevelopment
|
|
|
190
|
|
to
|
210
|
|
Capital improvement
|
|
|
110
|
|
to
|
120
|
|
Corporate
|
|
|
10
|
|
—
|
10
|
|
Total
|
|
|
$
|
700
|
|
to
|
$
|
800
|
|
(1)
|
|
Includes the construction of approximately 2,500 to 3,000
communications sites globally.
|
|
|
|
Reconciliations of Outlook for Net Income to Adjusted EBITDA:
|
|
($ in millions)
|
|
(Totals may not add due to rounding.)
|
|
|
Full Year 2016
|
|
Net income
|
|
|
$
|
1,010
|
|
to
|
$
|
1,120
|
|
Interest expense
|
|
|
745
|
|
to
|
715
|
|
Depreciation, amortization and accretion
|
|
|
1,435
|
|
to
|
1,465
|
|
Income tax provision
|
|
|
110
|
|
to
|
100
|
|
Stock-based compensation expense
|
|
|
95
|
|
—
|
95
|
|
Other, including other operating expenses, interest income, gain
(loss) on retirement of long-term
|
|
|
|
|
|
|
|
obligations, income (loss) on equity method investments and other
income (expense)
|
|
|
35
|
|
—
|
35
|
|
Adjusted EBITDA
|
|
|
$
|
3,430
|
|
to
|
$
|
3,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Outlook for Net Income to AFFO:
|
|
($ in millions)
|
|
|
|
|
(Totals may not add due to rounding.)
|
|
|
Full Year 2016
|
|
Net income
|
|
|
$
|
1,010
|
|
to
|
$
|
1,120
|
|
|
Straight-line revenue
|
|
|
(101
|
)
|
—
|
(101
|
)
|
|
Straight-line expense
|
|
|
59
|
|
—
|
59
|
|
|
Depreciation, amortization and accretion
|
|
|
1,435
|
|
to
|
1,465
|
|
|
Stock-based compensation expense
|
|
|
95
|
|
—
|
95
|
|
|
Non-cash portion of tax provision
|
|
|
14
|
|
to
|
5
|
|
|
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), non-cash interest related to joint venture
shareholder loans and dividends on
|
|
|
|
|
|
|
|
|
preferred stock
|
|
|
(37
|
)
|
to
|
(58
|
)
|
|
Capital improvement capital expenditures
|
|
|
(110
|
)
|
to
|
(120
|
)
|
|
Corporate capital expenditures
|
|
|
(10
|
)
|
—
|
(10
|
)
|
|
AFFO
|
|
|
$
|
2,355
|
|
to
|
$
|
2,455
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information
American Tower will host a conference call today at 8:30 a.m. ET to
discuss its financial results for the fourth quarter and full year ended
December 31, 2015 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)
291-1246
Passcode: 385554
When available, a replay of the call can be accessed until 11:59 p.m. ET
on March 11, 2016. The replay dial-in numbers are as follows:
U.S./Canada dial-in: (800) 475-6701
International dial-in: (320)
365-3844
Passcode: 385554
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 100,000
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, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New
Property Core Growth, Net Leverage Ratio, Tenant Run-Rate Revenue and
Tenant Non-Run Rate Revenue. The Company uses Funds From Operations as
defined by the National Association of Real Estate Investment Trusts
(NAREIT), referred to herein as NAREIT Funds From Operations.
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
Latin America property 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,
gain (loss) on retirement of long-term obligations, other income
(expense), net income (loss) attributable to non-controlling interest,
income (loss) on equity method investments and income tax benefit
(provision). 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
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 defines Adjusted EBITDA Margin as the percentage
that results from dividing Adjusted EBITDA by total revenue. NAREIT
Funds From Operations is defined as 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 interest. The Company
defines AFFO as NAREIT Funds From Operations before (i) straight-line
revenue and expense, (ii) stock-based compensation expense, (iii) the
non-cash 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 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 property 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 pass-through revenue (expense), where
applicable, straight-line revenue and expense recognition, foreign
currency exchange rate fluctuations and significant one-time items. The
Company defines Organic Core Growth in property 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 pass-through revenue (expense), 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 year period. The Company defines New Property
Core Growth in property 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 year period, in each case
excluding the impact of pass-through revenue (expense), 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. The Company defines
Tenant Run-Rate Revenue as primarily cash-based, recurring revenues,
typically tied to long-term tenant lease agreements that in the absence
of churn at the end of the contract term should continue in the future,
excluding pass-through revenue. The Company defines Tenant Non-Run Rate
Revenue as primarily non-recurring revenue, including back-billing,
decommissioning agreements and straight-line revenue, as well as
out-of-period items, excluding pass-through revenue. 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 Funds From
Operations, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New
Property Core Growth, Net Leverage Ratio, Tenant Run-Rate Revenue and
Tenant Non-Run Rate Revenue 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 2016 outlook, foreign currency exchange rates, our expectation
regarding the leasing demand for communications real estate and the
anticipated closing and impact of acquisitions. 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, 2014, under the
caption “Risk Factors”, as updated in the Form 10-Q for the quarter
ended September 30, 2015. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014(1)
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
320,686
|
|
|
$
|
313,492
|
|
|
Restricted cash
|
|
|
142,193
|
|
|
160,206
|
|
|
Short-term investments
|
|
|
—
|
|
|
6,302
|
|
|
Accounts receivable, net
|
|
|
227,354
|
|
|
199,074
|
|
|
Prepaid and other current assets
|
|
|
306,235
|
|
|
264,793
|
|
|
Deferred income taxes
|
|
|
—
|
|
|
14,000
|
|
|
Total current assets
|
|
|
996,468
|
|
|
957,867
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
9,866,424
|
|
|
7,590,112
|
|
|
GOODWILL
|
|
|
4,091,805
|
|
|
4,032,174
|
|
|
OTHER INTANGIBLE ASSETS, net
|
|
|
9,837,876
|
|
|
6,824,273
|
|
|
DEFERRED INCOME TAXES
|
|
|
212,041
|
|
|
253,186
|
|
|
DEFERRED RENT ASSET
|
|
|
1,166,755
|
|
|
1,030,707
|
|
|
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS
|
|
|
732,903
|
|
|
575,246
|
|
|
TOTAL
|
|
|
$
|
26,904,272
|
|
|
$
|
21,263,565
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
96,714
|
|
|
$
|
90,366
|
|
|
Accrued expenses
|
|
|
516,413
|
|
|
417,836
|
|
|
Distributions payable
|
|
|
210,027
|
|
|
159,864
|
|
|
Accrued interest
|
|
|
115,672
|
|
|
130,265
|
|
|
Current portion of long-term obligations
|
|
|
50,202
|
|
|
897,386
|
|
|
Unearned revenue
|
|
|
211,001
|
|
|
233,819
|
|
|
Total current liabilities
|
|
|
1,200,029
|
|
|
1,929,536
|
|
|
LONG-TERM OBLIGATIONS
|
|
|
17,068,807
|
|
|
13,642,955
|
|
|
ASSET RETIREMENT OBLIGATIONS
|
|
|
856,936
|
|
|
609,035
|
|
|
OTHER NON-CURRENT LIABILITIES
|
|
|
1,065,682
|
|
|
1,028,687
|
|
|
Total liabilities
|
|
|
20,191,454
|
|
|
17,210,213
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
Preferred stock, Series A
|
|
|
60
|
|
|
60
|
|
|
Preferred stock, Series B
|
|
|
14
|
|
|
—
|
|
|
Common stock
|
|
|
4,267
|
|
|
3,995
|
|
|
Additional paid-in capital
|
|
|
9,690,609
|
|
|
5,788,786
|
|
|
Distributions in excess of earnings
|
|
|
(998,535
|
)
|
|
(837,320
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(1,836,996
|
)
|
|
(794,221
|
)
|
|
Treasury stock
|
|
|
(207,740
|
)
|
|
(207,740
|
)
|
|
Total American Tower Corporation equity
|
|
|
6,651,679
|
|
|
3,953,560
|
|
|
Noncontrolling interest
|
|
|
61,139
|
|
|
99,792
|
|
|
Total equity
|
|
|
6,712,818
|
|
|
4,053,352
|
|
|
TOTAL
|
|
|
$
|
26,904,272
|
|
|
$
|
21,263,565
|
|
|
(1)
|
|
December 31, 2014 balances have been revised to reflect purchase
accounting measurement period adjustments and reclassification of
debt issuance costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
Property
|
|
|
$
|
1,251,124
|
|
|
$
|
1,029,854
|
|
|
$
|
4,680,388
|
|
|
$
|
4,006,854
|
|
|
Services
|
|
|
28,917
|
|
|
16,460
|
|
|
91,128
|
|
|
93,194
|
|
|
Total operating revenues
|
|
|
1,280,041
|
|
|
1,046,314
|
|
|
4,771,516
|
|
|
4,100,048
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of operations (exclusive of items shown separately below):
|
|
|
|
|
|
|
|
|
|
|
Property (including stock-based compensation expense of $396,
$338, $1,614, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,397, respectively)
|
|
|
345,812
|
|
|
269,803
|
|
|
1,275,436
|
|
|
1,056,177
|
|
|
Services (including stock-based compensation expense of $103, $97,
$439, and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$440, respectively)
|
|
|
10,569
|
|
|
7,216
|
|
|
33,432
|
|
|
38,088
|
|
|
Depreciation, amortization and accretion
|
|
|
352,356
|
|
|
263,546
|
|
|
1,285,328
|
|
|
1,003,802
|
|
|
Selling, general, administrative and development expense
(including stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation expense of $17,787, $18,010, $88,484 and $78,316,
respectively)
|
|
|
143,375
|
|
|
129,105
|
|
|
497,835
|
|
|
446,542
|
|
|
Other operating expenses
|
|
|
25,805
|
|
|
30,665
|
|
|
66,696
|
|
|
68,517
|
|
|
Total operating expenses
|
|
|
877,917
|
|
|
700,335
|
|
|
3,158,727
|
|
|
2,613,126
|
|
|
OPERATING INCOME
|
|
|
402,124
|
|
|
345,979
|
|
|
1,612,789
|
|
|
1,486,922
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
Interest income, TV Azteca, net
|
|
|
2,958
|
|
|
2,629
|
|
|
11,209
|
|
|
10,547
|
|
|
Interest income
|
|
|
4,608
|
|
|
5,853
|
|
|
16,479
|
|
|
14,002
|
|
|
Interest expense
|
|
|
(149,721
|
)
|
|
(147,481
|
)
|
|
(595,949
|
)
|
|
(580,234
|
)
|
|
Loss on retirement of long-term obligations
|
|
|
(813
|
)
|
|
(4,920
|
)
|
|
(79,606
|
)
|
|
(3,473
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (including unrealized foreign currency (gains)
losses of ($36,398),
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($13,237), $71,473, and $49,319, respectively)
|
|
|
(11,669
|
)
|
|
(7,835
|
)
|
|
(134,960
|
)
|
|
(62,060
|
)
|
|
Total other expense
|
|
|
(154,637
|
)
|
|
(151,754
|
)
|
|
(782,827
|
)
|
|
(621,218
|
)
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
|
247,487
|
|
|
194,225
|
|
|
829,962
|
|
|
865,704
|
|
|
Income tax provision
|
|
|
(25,892
|
)
|
|
(12,628
|
)
|
|
(157,955
|
)
|
|
(62,505
|
)
|
|
NET INCOME
|
|
|
221,595
|
|
|
181,597
|
|
|
672,007
|
|
|
803,199
|
|
|
Net loss (income) attributable to noncontrolling interest
|
|
|
11,107
|
|
|
(1,210
|
)
|
|
13,067
|
|
|
21,711
|
|
|
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS
|
|
|
232,702
|
|
|
180,387
|
|
|
685,074
|
|
|
824,910
|
|
|
Dividends on preferred stock
|
|
|
(26,781
|
)
|
|
(11,813
|
)
|
|
(90,163
|
)
|
|
(23,888
|
)
|
|
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON
STOCKHOLDERS
|
|
|
$
|
205,921
|
|
|
$
|
168,574
|
|
|
$
|
594,911
|
|
|
$
|
801,022
|
|
|
NET INCOME PER COMMON SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
|
Basic net income attributable to American Tower Corporation common
stockholders
|
|
|
$
|
0.49
|
|
|
$
|
0.43
|
|
|
$
|
1.42
|
|
|
$
|
2.02
|
|
|
Diluted net income attributable to American Tower Corporation common
stockholders
|
|
|
$
|
0.48
|
|
|
$
|
0.42
|
|
|
$
|
1.41
|
|
|
$
|
2.00
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
423,736
|
|
|
396,553
|
|
|
418,907
|
|
|
395,958
|
|
|
DILUTED
|
|
|
427,802
|
|
|
400,899
|
|
|
423,015
|
|
|
400,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
|
2015
|
|
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
672,007
|
|
|
$
|
803,199
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
90,537
|
|
|
80,153
|
|
|
Depreciation, amortization and accretion
|
|
|
1,285,328
|
|
|
1,003,802
|
|
|
Loss on early retirement of long-term obligations
|
|
|
79,750
|
|
|
3,379
|
|
|
Other non-cash items reflected in statement of operations
|
|
|
190,718
|
|
|
86,790
|
|
|
Increase in net deferred rent asset
|
|
|
(98,883
|
)
|
|
(83,852
|
)
|
|
Decrease in restricted cash
|
|
|
16,112
|
|
|
7,522
|
|
|
Increase in assets
|
|
|
(147,425
|
)
|
|
(85,966
|
)
|
|
Increase in liabilities
|
|
|
94,908
|
|
|
319,562
|
|
|
Cash provided by operating activities
|
|
|
2,183,052
|
|
|
2,134,589
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Payments for purchase of property and equipment and construction
activities
|
|
|
(728,753
|
)
|
|
(974,404
|
)
|
|
Payments for acquisitions, net of cash acquired
|
|
|
(1,961,056
|
)
|
|
(1,010,637
|
)
|
|
Payment for Verizon transaction
|
|
|
(5,059,462
|
)
|
|
—
|
|
|
Proceeds from sale of assets, net of cash
|
|
|
—
|
|
|
15,464
|
|
|
Proceeds from sales of short-term investments and other non-current
assets
|
|
|
1,032,320
|
|
|
1,434,831
|
|
|
Payments for short-term investments
|
|
|
(1,022,816
|
)
|
|
(1,395,316
|
)
|
|
Deposits, restricted cash and other
|
|
|
(1,968
|
)
|
|
(19,486
|
)
|
|
Cash used for investing activities
|
|
|
(7,741,735
|
)
|
|
(1,949,548
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds from short-term borrowings, net
|
|
|
9,043
|
|
|
—
|
|
|
Borrowings under credit facilities
|
|
|
6,126,618
|
|
|
2,187,000
|
|
|
Proceeds from issuance of senior notes, net
|
|
|
1,492,298
|
|
|
1,415,844
|
|
|
Proceeds from term loan
|
|
|
500,000
|
|
|
—
|
|
|
Proceeds from other long-term borrowings
|
|
|
54,549
|
|
|
102,070
|
|
|
Proceeds from issuance of securities in securitization transaction
|
|
|
875,000
|
|
|
—
|
|
|
Repayments of notes payable, credit facilities, term loan, senior
notes and capital leases
|
|
|
(6,393,405
|
)
|
|
(3,903,144
|
)
|
|
Contributions from noncontrolling interest holders, net
|
|
|
7,201
|
|
|
9,098
|
|
|
Proceeds from the issuance of common stock, net
|
|
|
2,440,327
|
|
|
—
|
|
|
Proceeds from the issuance of preferred stock, net
|
|
|
1,337,946
|
|
|
583,105
|
|
|
Proceeds from stock options and stock purchase plan
|
|
|
50,716
|
|
|
62,276
|
|
|
Purchase of preferred stock assumed in acquisition
|
|
|
—
|
|
|
(59,111
|
)
|
|
Payment for early retirement of long-term obligations
|
|
|
(85,672
|
)
|
|
(11,593
|
)
|
|
Deferred financing costs and other financing activities
|
|
|
(30,021
|
)
|
|
(34,670
|
)
|
|
Purchase of noncontrolling interest
|
|
|
—
|
|
|
(64,822
|
)
|
|
Distributions paid on preferred stock
|
|
|
(84,647
|
)
|
|
(16,013
|
)
|
|
Distributions paid on common stock
|
|
|
(710,852
|
)
|
|
(404,631
|
)
|
|
Cash provided by (used for) financing activities
|
|
|
5,589,101
|
|
|
(134,591
|
)
|
|
Net effect of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
|
(23,224
|
)
|
|
(30,534
|
)
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
7,194
|
|
|
19,916
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
313,492
|
|
|
293,576
|
|
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
|
$
|
320,686
|
|
|
$
|
313,492
|
|
|
CASH PAID FOR INCOME TAXES, NET
|
|
|
$
|
157,058
|
|
|
$
|
69,212
|
|
|
CASH PAID FOR INTEREST
|
|
|
$
|
577,952
|
|
|
$
|
548,089
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT
(In
millions, except percentages. Totals may not add due to rounding.)
|
|
|
|
Three months ended December 31, 2015
|
|
|
|
|
Property
|
|
Services
|
|
Total
|
|
|
|
|
U.S.
|
|
Asia
|
|
EMEA
|
|
Latin
America
|
|
Total
International
|
|
Total
Property
|
|
Segment revenues
|
|
|
$
|
829
|
|
|
$
|
64
|
|
|
$
|
124
|
|
|
$
|
234
|
|
|
$
|
422
|
|
|
$
|
1,251
|
|
|
$
|
29
|
|
|
$
|
1,280
|
|
|
Segment operating expenses(1)
|
|
|
176
|
|
|
33
|
|
|
54
|
|
|
83
|
|
|
169
|
|
|
345
|
|
|
10
|
|
|
356
|
|
|
Interest income, TV Azteca, net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
Segment Gross Margin
|
|
|
653
|
|
|
31
|
|
|
71
|
|
|
155
|
|
|
256
|
|
|
909
|
|
|
18
|
|
|
927
|
|
|
Segment SG&A(1)
|
|
|
49
|
|
|
6
|
|
|
15
|
|
|
18
|
|
|
38
|
|
|
87
|
|
|
5
|
|
|
92
|
|
|
Segment Operating Profit
|
|
|
$
|
604
|
|
|
$
|
25
|
|
|
$
|
56
|
|
|
$
|
137
|
|
|
$
|
218
|
|
|
$
|
821
|
|
|
$
|
13
|
|
|
$
|
835
|
|
|
Segment Operating Profit Margin
|
|
|
73
|
%
|
|
39
|
%
|
|
45
|
%
|
|
58
|
%
|
|
52
|
%
|
|
66
|
%
|
|
46
|
%
|
|
65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Growth
|
|
|
19.9
|
%
|
|
21.5
|
%
|
|
84.3
|
%
|
|
30.7
|
%
|
|
41.6
|
%
|
|
25.9
|
%
|
|
|
|
|
|
New Property Core Growth
|
|
|
14.7
|
%
|
|
10.7
|
%
|
|
69.9
|
%
|
|
18.5
|
%
|
|
29.0
|
%
|
|
18.8
|
%
|
|
|
|
|
|
Organic Core Growth
|
|
|
5.2
|
%
|
|
10.8
|
%
|
|
14.4
|
%
|
|
12.2
|
%
|
|
12.5
|
%
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tenant Run-Rate Revenue(2)
|
|
|
$
|
776
|
|
|
$
|
37
|
|
|
$
|
92
|
|
|
$
|
150
|
|
|
$
|
280
|
|
|
$
|
1,056
|
|
|
|
|
|
|
Tenant Non-Run Rate Revenue(3)
|
|
|
53
|
|
|
1
|
|
|
1
|
|
|
19
|
|
|
21
|
|
|
73
|
|
|
|
|
|
|
International Pass-Through Revenue
|
|
|
—
|
|
|
26
|
|
|
31
|
|
|
65
|
|
|
122
|
|
|
122
|
|
|
|
|
|
|
Segment Revenue
|
|
|
$
|
829
|
|
|
$
|
64
|
|
|
$
|
124
|
|
|
$
|
234
|
|
|
$
|
422
|
|
|
$
|
1,251
|
|
|
|
|
|
|
Straight-Line Revenue(4)
|
|
|
$
|
30
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
15
|
|
|
$
|
17
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2014
|
|
|
|
|
Property
|
|
Services
|
|
Total
|
|
|
|
|
U.S.
|
|
Asia
|
|
EMEA
|
|
Latin
America
|
|
Total
International
|
|
Total
Property
|
|
Segment revenues
|
|
|
$
|
681
|
|
|
$
|
57
|
|
|
$
|
79
|
|
|
$
|
213
|
|
|
$
|
349
|
|
|
$
|
1,030
|
|
|
$
|
16
|
|
|
$
|
1,046
|
|
|
Segment operating expenses(1)
|
|
|
134
|
|
|
31
|
|
|
32
|
|
|
72
|
|
|
136
|
|
|
269
|
|
|
7
|
|
|
277
|
|
|
Interest income, TV Azteca,
net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
Segment Gross Margin
|
|
|
547
|
|
|
26
|
|
|
47
|
|
|
144
|
|
|
216
|
|
|
763
|
|
|
9
|
|
|
772
|
|
|
Segment SG&A(1)
|
|
|
38
|
|
|
5
|
|
|
10
|
|
|
19
|
|
|
33
|
|
|
72
|
|
|
5
|
|
|
76
|
|
|
Segment Operating Profit
|
|
|
$
|
508
|
|
|
$
|
21
|
|
|
$
|
36
|
|
|
$
|
125
|
|
|
$
|
183
|
|
|
$
|
691
|
|
|
$
|
5
|
|
|
$
|
696
|
|
|
Segment Operating Profit Margin
|
|
|
75
|
%
|
|
37
|
%
|
|
46
|
%
|
|
59
|
%
|
|
52
|
%
|
|
67
|
%
|
|
29
|
%
|
|
67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Growth
|
|
|
12.1
|
%
|
|
24.3
|
%
|
|
20.4
|
%
|
|
35.7
|
%
|
|
30.3
|
%
|
|
16.9
|
%
|
|
|
|
|
|
New Property Core Growth
|
|
|
3.1
|
%
|
|
11.4
|
%
|
|
4.1
|
%
|
|
24.4
|
%
|
|
17.3
|
%
|
|
7.0
|
%
|
|
|
|
|
|
Organic Core Growth
|
|
|
9.0
|
%
|
|
13.0
|
%
|
|
16.3
|
%
|
|
11.3
|
%
|
|
12.9
|
%
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tenant Run-Rate Revenue(2)
|
|
|
$
|
644
|
|
|
$
|
32
|
|
|
$
|
55
|
|
|
$
|
161
|
|
|
$
|
249
|
|
|
$
|
892
|
|
|
|
|
|
|
Tenant Non-Run Rate Revenue(3)
|
|
|
37
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
7
|
|
|
44
|
|
|
|
|
|
|
International Pass-Through Revenue
|
|
|
—
|
|
|
24
|
|
|
20
|
|
|
50
|
|
|
94
|
|
|
94
|
|
|
|
|
|
|
Segment Revenue
|
|
|
$
|
681
|
|
|
$
|
57
|
|
|
$
|
79
|
|
|
$
|
213
|
|
|
$
|
349
|
|
|
$
|
1,030
|
|
|
|
|
|
|
Straight-Line Revenue(4)
|
|
|
$
|
21
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
27
|
|
|
|
|
|
|
(1)
|
|
Excludes stock-based compensation expense.
|
|
(2)
|
|
Primarily cash-based, recurring revenues, typically tied to
long-term tenant lease agreements that, in the absence of churn at
the end of the contract term, should continue in the future,
excluding pass-through revenue.
|
|
(3)
|
|
Primarily non-recurring revenue, including back-billing,
decommissioning agreements and straight-line revenue, as well as
out-of-period items, excluding pass-through revenue.
|
|
(4)
|
|
Straight-line revenue is included in Tenant Non-Run Rate Revenue.
|
|
|
|
|
UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT (CONTINUED)
(In
millions, except percentages. Totals may not add due to rounding.)
|
|
|
|
Twelve months ended December 31, 2015
|
|
|
|
|
Property
|
|
Services
|
|
Total
|
|
|
|
|
U.S.
|
|
Asia
|
|
EMEA
|
|
Latin
America
|
|
Total
International
|
|
Total
Property
|
|
Segment revenues
|
|
|
$
|
3,158
|
|
|
$
|
242
|
|
|
$
|
395
|
|
|
$
|
886
|
|
|
$
|
1,523
|
|
|
$
|
4,680
|
|
|
$
|
91
|
|
|
$
|
4,772
|
|
|
Segment operating expenses(1)
|
|
|
678
|
|
|
127
|
|
|
164
|
|
|
305
|
|
|
595
|
|
|
1,274
|
|
|
33
|
|
|
1,307
|
|
|
Interest income, TV Azteca, net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
Segment Gross Margin
|
|
|
2,479
|
|
|
115
|
|
|
231
|
|
|
592
|
|
|
939
|
|
|
3,418
|
|
|
58
|
|
|
3,476
|
|
|
Segment SG&A(1)
|
|
|
139
|
|
|
23
|
|
|
49
|
|
|
62
|
|
|
134
|
|
|
272
|
|
|
16
|
|
|
288
|
|
|
Segment Operating Profit
|
|
|
$
|
2,340
|
|
|
$
|
93
|
|
|
$
|
183
|
|
|
$
|
530
|
|
|
$
|
805
|
|
|
$
|
3,146
|
|
|
$
|
42
|
|
|
$
|
3,188
|
|
|
Segment Operating Profit Margin
|
|
|
74
|
%
|
|
38
|
%
|
|
46
|
%
|
|
60
|
%
|
|
53
|
%
|
|
67
|
%
|
|
47
|
%
|
|
67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Growth
|
|
|
18.9
|
%
|
|
20.9
|
%
|
|
49.2
|
%
|
|
31.2
|
%
|
|
34.1
|
%
|
|
23.1
|
%
|
|
|
|
|
|
New Property Core Growth
|
|
|
12.4
|
%
|
|
11.3
|
%
|
|
36.0
|
%
|
|
20.9
|
%
|
|
23.2
|
%
|
|
15.5
|
%
|
|
|
|
|
|
Organic Core Growth
|
|
|
6.6
|
%
|
|
9.6
|
%
|
|
13.2
|
%
|
|
10.3
|
%
|
|
10.9
|
%
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tenant Run-Rate Revenue(2)
|
|
|
$
|
2,959
|
|
|
$
|
141
|
|
|
$
|
296
|
|
|
$
|
624
|
|
|
$
|
1,061
|
|
|
$
|
4,020
|
|
|
|
|
|
|
Tenant Non-Run Rate Revenue(3)
|
|
|
199
|
|
|
2
|
|
|
5
|
|
|
32
|
|
|
39
|
|
|
238
|
|
|
|
|
|
|
International Pass-Through Revenue
|
|
|
—
|
|
|
99
|
|
|
94
|
|
|
230
|
|
|
423
|
|
|
423
|
|
|
|
|
|
|
Segment revenue
|
|
|
$
|
3,158
|
|
|
$
|
242
|
|
|
$
|
395
|
|
|
$
|
886
|
|
|
$
|
1,523
|
|
|
$
|
4,680
|
|
|
|
|
|
|
Straight-Line Revenue(4)
|
|
|
$
|
119
|
|
|
$
|
1
|
|
|
$
|
6
|
|
|
$
|
28
|
|
|
$
|
36
|
|
|
$
|
155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2014
|
|
|
|
|
Property
|
|
Services
|
|
Total
|
|
|
|
|
U.S.
|
|
Asia
|
|
EMEA
|
|
Latin
America
|
|
Total
International
|
|
Total
Property
|
|
Segment revenues
|
|
|
$
|
2,640
|
|
|
$
|
220
|
|
|
$
|
315
|
|
|
$
|
832
|
|
|
$
|
1,367
|
|
|
$
|
4,007
|
|
|
$
|
93
|
|
|
$
|
4,100
|
|
|
Segment operating expenses(1)
|
|
|
516
|
|
|
122
|
|
|
127
|
|
|
291
|
|
|
539
|
|
|
1,055
|
|
|
38
|
|
|
1,092
|
|
|
Interest income, TV Azteca, net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
Segment Gross Margin
|
|
|
$
|
2,124
|
|
|
$
|
98
|
|
|
$
|
188
|
|
|
$
|
552
|
|
|
$
|
839
|
|
|
$
|
2,963
|
|
|
$
|
56
|
|
|
$
|
3,018
|
|
|
Segment SG&A(1)
|
|
|
125
|
|
|
20
|
|
|
40
|
|
|
67
|
|
|
126
|
|
|
251
|
|
|
12
|
|
|
263
|
|
|
Segment Operating Profit
|
|
|
1,999
|
|
|
78
|
|
|
149
|
|
|
486
|
|
|
712
|
|
|
2,712
|
|
|
43
|
|
|
2,755
|
|
|
Segment Operating Profit Margin
|
|
|
76
|
%
|
|
36
|
%
|
|
47
|
%
|
|
58
|
%
|
|
52
|
%
|
|
68
|
%
|
|
46
|
%
|
|
67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Growth
|
|
|
23.5
|
%
|
|
18.0
|
%
|
|
22.2
|
%
|
|
46.0
|
%
|
|
35.4
|
%
|
|
26.7
|
%
|
|
|
|
|
|
New Property Core Growth
|
|
|
13.8
|
%
|
|
10.0
|
%
|
|
5.2
|
%
|
|
33.7
|
%
|
|
22.4
|
%
|
|
16.7
|
%
|
|
|
|
|
|
Organic Core Growth
|
|
|
9.6
|
%
|
|
8.0
|
%
|
|
17.0
|
%
|
|
12.3
|
%
|
|
13.1
|
%
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tenant Run-Rate Revenue(2)
|
|
|
$
|
2,490
|
|
|
$
|
122
|
|
|
$
|
224
|
|
|
$
|
617
|
|
|
$
|
964
|
|
|
$
|
3,454
|
|
|
|
|
|
|
Tenant Non-Run Rate Revenue(3)
|
|
|
149
|
|
|
2
|
|
|
16
|
|
|
22
|
|
|
41
|
|
|
190
|
|
|
|
|
|
|
International Pass-Through Revenue
|
|
|
—
|
|
|
95
|
|
|
75
|
|
|
193
|
|
|
363
|
|
|
363
|
|
|
|
|
|
|
Segment revenue
|
|
|
$
|
2,640
|
|
|
$
|
220
|
|
|
$
|
315
|
|
|
$
|
832
|
|
|
$
|
1,367
|
|
|
$
|
4,007
|
|
|
|
|
|
|
Straight-Line Revenue(4)
|
|
|
$
|
91
|
|
|
$
|
1
|
|
|
$
|
11
|
|
|
$
|
20
|
|
|
$
|
32
|
|
|
$
|
124
|
|
|
|
|
|
|
(1)
|
|
Excludes stock-based compensation expense.
|
|
(2)
|
|
Primarily cash-based, recurring revenues, typically tied to
long-term tenant lease agreements, that in the absence of churn at
the end of the contract term, should continue in the future,
excluding pass-through revenue.
|
|
(3)
|
|
Primarily non-recurring revenue, including back-billing,
decommissioning agreements and straight-line revenue, as well as
out-of-period items, excluding pass-through revenue.
|
|
(4)
|
|
Straight-line revenue is included in Tenant Non-Run Rate Revenue.
|
|
|
|
|
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands,
except where noted. Totals may not add due to rounding.)
The following table reflects the estimated impact of foreign currency
exchange rate fluctuations, pass-through revenue (expense),
straight-line revenue and expense recognition and material one-time
items on total property revenue, Adjusted EBITDA and AFFO.
|
|
|
|
|
|
|
|
|
|
The calculation of Core Growth is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
Three months ended December 31, 2015
|
|
|
Property Revenue
|
|
EBITDA
|
|
AFFO
|
|
Core Growth
|
|
|
25.9%
|
|
26.2%
|
|
29.8%
|
|
Estimated impact of pass-through revenue
|
|
|
0.9%
|
|
—
|
|
—
|
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(7.3)%
|
|
(8.0)%
|
|
(10.0)%
|
|
Estimated impact of straight-line revenue recognition
|
|
|
1.3%
|
|
1.0%
|
|
—
|
|
Estimated impact of significant one-time items
|
|
|
0.8%
|
|
2.1%
|
|
2.8%
|
|
Reported growth
|
|
|
21.5%
|
|
21.2%
|
|
22.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
Twelve months ended December 31, 2015
|
|
|
Property Revenue
|
|
EBITDA
|
|
AFFO
|
|
Core Growth
|
|
|
23.1%
|
|
22.8%
|
|
27.5%
|
|
Estimated impact of pass-through revenue
|
|
|
0.0%
|
|
—
|
|
—
|
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(6.4)%
|
|
(7.1)%
|
|
(9.1)%
|
|
Estimated impact of straight-line revenue recognition
|
|
|
0.3%
|
|
0.1%
|
|
—
|
|
Estimated impact of significant one-time items
|
|
|
(0.2)%
|
|
(0.1)%
|
|
0.2%
|
|
Reported growth
|
|
|
16.8%
|
|
15.7%
|
|
18.5%
|
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF
DEFINED FINANCIAL MEASURES
(In thousands, except
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
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net income
|
|
|
$
|
221,595
|
|
|
$
|
181,597
|
|
|
$
|
672,007
|
|
|
$
|
803,199
|
|
|
Income tax provision
|
|
|
25,892
|
|
|
12,628
|
|
|
157,955
|
|
|
62,505
|
|
|
Other expense
|
|
|
11,669
|
|
|
7,835
|
|
|
134,960
|
|
|
62,060
|
|
|
Loss on retirement of long-term obligations
|
|
|
813
|
|
|
4,920
|
|
|
79,606
|
|
|
3,473
|
|
|
Interest expense
|
|
|
149,721
|
|
|
147,481
|
|
|
595,949
|
|
|
580,234
|
|
|
Interest income
|
|
|
(4,608
|
)
|
|
(5,853
|
)
|
|
(16,479
|
)
|
|
(14,002
|
)
|
|
Other operating expenses
|
|
|
25,805
|
|
|
30,665
|
|
|
66,696
|
|
|
68,517
|
|
|
Depreciation, amortization and accretion
|
|
|
352,356
|
|
|
263,546
|
|
|
1,285,328
|
|
|
1,003,802
|
|
|
Stock-based compensation expense
|
|
|
18,286
|
|
|
18,445
|
|
|
90,537
|
|
|
80,153
|
|
|
Adjusted EBITDA
|
|
|
$
|
801,529
|
|
|
$
|
661,264
|
|
|
$
|
3,066,559
|
|
|
$
|
2,649,941
|
|
|
Divided by total revenue
|
|
|
1,280,041
|
|
|
1,046,314
|
|
|
4,771,516
|
|
|
4,100,048
|
|
|
Adjusted EBITDA Margin
|
|
|
63
|
%
|
|
63
|
%
|
|
64
|
%
|
|
65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation of net income to NAREIT Funds From Operations and
the calculation of AFFO and AFFO per Share are presented below:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net Income
|
|
|
$
|
221,595
|
|
|
$
|
181,597
|
|
|
$
|
672,007
|
|
|
$
|
803,199
|
|
|
Real estate related depreciation, amortization and accretion
|
|
|
311,066
|
|
|
222,548
|
|
|
1,128,340
|
|
|
878,714
|
|
|
Losses from sale or disposal of real estate and real estate related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impairment charges
|
|
|
17,771
|
|
|
15,305
|
|
|
29,427
|
|
|
18,160
|
|
|
Dividends on preferred stock
|
|
|
(26,781
|
)
|
|
(11,813
|
)
|
|
(90,163
|
)
|
|
(23,888
|
)
|
|
Adjustments for unconsolidated affiliates and noncontrolling interest
|
|
|
5,849
|
|
|
(7,177
|
)
|
|
(6,429
|
)
|
|
(1,815
|
)
|
|
NAREIT Funds From Operations
|
|
|
529,500
|
|
|
400,460
|
|
|
1,733,182
|
|
|
1,674,370
|
|
|
Straight-line revenue
|
|
|
(46,782
|
)
|
|
(27,396
|
)
|
|
(154,959
|
)
|
|
(123,716
|
)
|
|
Straight-line expense
|
|
|
16,918
|
|
|
8,664
|
|
|
56,076
|
|
|
38,378
|
|
|
Stock-based compensation expense
|
|
|
18,286
|
|
|
18,445
|
|
|
90,537
|
|
|
80,153
|
|
|
Non-cash portion of tax provision
|
|
|
(935
|
)
|
|
(4,205
|
)
|
|
897
|
|
|
(6,707
|
)
|
|
Non-real estate related depreciation, amortization and accretion
|
|
|
41,290
|
|
|
40,998
|
|
|
156,988
|
|
|
125,088
|
|
|
Amortization of deferred financing costs, capitalized interest and
debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
discounts and premiums and long-term deferred interest charges
|
|
|
6,383
|
|
|
3,489
|
|
|
22,575
|
|
|
8,622
|
|
|
Other expense(1)
|
|
|
11,669
|
|
|
7,835
|
|
|
134,960
|
|
|
62,060
|
|
|
Loss on retirement of long-term obligations
|
|
|
813
|
|
|
4,920
|
|
|
79,606
|
|
|
3,473
|
|
|
Other operating expense(2)
|
|
|
8,034
|
|
|
15,360
|
|
|
37,269
|
|
|
50,357
|
|
|
Capital improvement capital expenditures
|
|
|
(31,032
|
)
|
|
(24,740
|
)
|
|
(89,867
|
)
|
|
(75,041
|
)
|
|
Corporate capital expenditures
|
|
|
(6,567
|
)
|
|
(9,323
|
)
|
|
(16,447
|
)
|
|
(24,146
|
)
|
|
Adjustments for unconsolidated affiliates and noncontrolling interest
|
|
|
(5,849
|
)
|
|
7,177
|
|
|
6,429
|
|
|
1,815
|
|
|
GTP REIT one-time tax charge(3)
|
|
|
—
|
|
|
—
|
|
|
93,044
|
|
|
—
|
|
|
AFFO
|
|
|
$
|
541,728
|
|
|
$
|
441,684
|
|
|
$
|
2,150,290
|
|
|
$
|
1,814,706
|
|
|
Divided by weighted average diluted shares outstanding
|
|
|
427,802
|
|
|
400,899
|
|
|
423,015
|
|
|
400,086
|
|
|
AFFO per Share
|
|
|
$
|
1.27
|
|
|
$
|
1.10
|
|
|
$
|
5.08
|
|
|
$
|
4.54
|
|
|
(1)
|
|
Primarily includes realized and unrealized loss on foreign currency
exchange rate fluctuations.
|
|
(2)
|
|
Primarily includes impairments and transaction related costs.
|
|
(3)
|
|
During the year ended December 31, 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
the 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 AFFO
excluding its impact.
|
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