CONSOLIDATED HIGHLIGHTS
Fourth Quarter 2016
- Total revenue increased 20.3% to $1,540
million
- Property revenue increased 21.6% to
$1,521 million
- Net income increased 5.1% to $233
million
- Adjusted EBITDA increased 16.7% to $936
million
- Consolidated AFFO increased 20.9% to
$655 million
Full Year 2016
- Total revenue increased 21.3% to $5,786
million
- Property revenue increased 22.1% to
$5,713 million
- Net income increased 44.4% to $970
million
- Adjusted EBITDA increased 15.9% to
$3,553 million
- Consolidated AFFO increased 15.8% to
$2,490 million
American Tower Corporation (NYSE:AMT) today reported financial
results for the quarter and full year ended December 31,
2016.
Jim Taiclet, American Tower’s Chief Executive Officer stated,
“In 2016, we once again generated double digit growth in our
property revenue, Adjusted EBITDA and Consolidated AFFO per Share.
At the same time, we continued to expand our asset base through our
active tower construction program and accretive acquisitions like
the Viom transaction in India and ended the year with nearly
145,000 towers and small cell systems.
In all of these markets, consumers are driving increases in
smartphone penetration and monthly data consumption, including in
the U.S., where the average smartphone user now consumes over 4.4
gigabytes of data per month. We expect that these trends will
in turn result in continued network investment and underpin our
expectations for 2017, which include Organic Tenant Billings Growth
of over 7% and Consolidated AFFO growth of over 10%. Further,
we continue to target annual dividend per share growth of at least
20%, remain committed to our target net leverage range and expect
to evaluate both accretive acquisition opportunities and a
reinstatement of our share repurchase program during the course of
the year.”
CONSOLIDATED OPERATING RESULTS OVERVIEW
American Tower generated the following operating results for the
quarter and year ended December 31, 2016 (unless otherwise
indicated, all comparative information is presented against the
quarter and year ended December 31, 2015), as applicable.
($ in millions, except
per share amounts)
Q4 2016 Growth Rate FY
2016 Growth Rate Total revenue $ 1,540 20.3 % $
5,786 21.3 % Total property revenue $ 1,521 21.6 % $ 5,713
22.1 % Total Tenant Billings Growth $ 215 20.8 % $ 881 22.4 %
Organic Tenant Billings Growth $ 81 7.8 % $ 308 7.8 % Property
Gross Margin $ 1,042 14.7 % $ 3,963 16.0 % Property Gross Margin %
68.5 % 69.4 % Net income(1) $ 233 5.1 % $ 970 44.4 % Net income
attributable to AMT common stockholders(1) $ 202 (1.7 )% $ 849 42.8
% Net income attributable to AMT common stockholders per diluted
share(1) $ 0.47 (2.1 )% $ 1.98 40.4 % Adjusted EBITDA $ 936 16.7 %
$ 3,553 15.9 % Adjusted EBITDA Margin % 60.8 % 61.4 % NAREIT
Funds From Operations (FFO) attributable to AMT common
stockholders(1) $ 557 5.2 % $ 2,188 26.3 % Consolidated AFFO $ 655
20.9 % $ 2,490 15.8 % Consolidated AFFO per Share $ 1.52 19.7 % $
5.80 14.2 % AFFO attributable to AMT common stockholders $ 631 17.0
% $ 2,400 13.4 % AFFO attributable to AMT common stockholders per
Share $ 1.47 16.7 % $ 5.59 11.8 % Cash provided by operating
activities $ 725 13.4 % $ 2,704 23.8 % Less: total cash capital
expenditures(2) $ 212 0.8 % $ 701 (3.8
)% Free Cash Flow $ 513 19.6 % $ 2,002 37.7 % (1)
FY 2016 growth rate includes the impact of a one-time cash
tax charge of approximately $93 million recorded in Q3 2015 as part
of a tax election pursuant to which GTP REIT no longer operates as
a separate REIT for federal and state income tax purposes. (2) Cash
capital expenditures for Q4 2016 and FY 2016 include $5.1 million
and $18.9 million, respectively, of payments on capital leases of
property and equipment, which are presented in the condensed
consolidated statements of cash flows included herein under
Repayments of notes payable, credit facilities, term loan, senior
notes and capital leases.
Please refer to “Non-GAAP and Defined Financial Measures” below
for definitions and other information regarding the Company’s use
of non-GAAP measures. For financial information and reconciliations
to GAAP measures, please refer to the “Unaudited Selected
Consolidated Financial Information” and “Unaudited Reconciliations
to GAAP Measures and the Calculation of Defined Financial Measures”
below.
CAPITAL ALLOCATION OVERVIEW
Distributions – During the quarter and full year ended
December 31, 2016, the Company declared the following regular cash
distributions to its common stockholders:
Common Stock Distributions
Q4 2016(1) FY 2016 Distribution per
share $ 0.58 $ 2.17 Aggregate amount (in millions) $ 248 $ 924
Year-over-year per share growth 18 % 20 % _______________ (1)
The dividend declared was paid in the first quarter
of 2017 to stockholders of record as of the close of business on
December 28, 2016.
In addition, the Company paid approximately $27 million in
preferred stock dividends during the fourth quarter of 2016 and
$107 million during the year ended December 31,2016.
Capital Expenditures – During the fourth quarter of 2016,
total capital expenditures were $212 million, of which
approximately $47 million was for non-discretionary capital
improvements and corporate capital expenditures. For the full year,
total capital expenditures were $701 million, of which
approximately $127 million was for non-discretionary capital
improvements and corporate capital expenditures. For additional
capital expenditure details, please refer to the supplemental
disclosure package available on the Company’s website.
Acquisitions and Other Transactions – During the fourth
quarter of 2016, the Company spent approximately $106 million to
acquire 108 sites, primarily in its existing international markets,
and Comunicaciones y Consumos, S.A. (CyCSA) in Argentina, a new
market for the Company. In December 2016, the Company finalized its
entry into a joint venture (“ATC Europe”) with PGGM. In addition,
during the fourth quarter of 2016, ATC Europe entered into a
definitive agreement to acquire FPS Towers (“FPS”) in France, which
is also a new market for the Company. The FPS acquisition closed on
February 15, 2017. As a result, the Company now operates in 15
countries. For the full year, the Company spent $1.4 billion to
acquire over 43,000 communications sites, primarily in the
Company’s international markets.
LEVERAGE AND FINANCING OVERVIEW
Leverage – For the quarter ended December 31, 2016,
the Company’s Net Leverage Ratio was approximately 4.7x net debt
(total debt less cash and cash equivalents) to fourth quarter 2016
annualized Adjusted EBITDA.
Calculation of Net Leverage Ratio ($ in
millions)
As of December 31, 2016 Total debt $ 18,533 Less:
Cash and cash equivalents 787 Net Debt 17,746 Divided By:
Fourth quarter annualized Adjusted EBITDA(1) 3,743 Net
Leverage Ratio 4.7x _______________ (1) Q4 2016
Adjusted EBITDA multiplied by four.
Liquidity – As of December 31, 2016, the Company had
approximately $3.6 billion of total liquidity, consisting of
approximately $0.8 billion in cash and cash equivalents plus the
ability to borrow an aggregate of approximately $2.8 billion under
its revolving credit facilities, net of any outstanding letters of
credit.
Subsequent to the end of the fourth quarter of 2016, the Company
borrowed an aggregate of $1.0 billion under its credit facilities.
These borrowings were used to fund the Company’s FPS acquisition in
France, the redemption of all outstanding 7.25% senior
unsecured notes, the repayment of all amounts outstanding under
certain securitized notes assumed in connection with prior
acquisitions and for general corporate purposes.
FULL YEAR 2017 OUTLOOK
The following estimates are based on a number of assumptions
that management believes to be reasonable and reflect the Company’s
expectations as of February 27, 2017. Actual results may differ
materially from these estimates as a result of various factors, and
the Company refers you to the cautionary language regarding
“forward-looking” statements included in this press release when
considering this information.
The Company’s outlook includes the impact of its recently closed
acquisition of FPS and is based on the following average foreign
currency exchange rates to 1.00 U.S. Dollar for the remainder
of 2017: (a) 16.70 Argentinean Pesos; (b) 3.35 Brazilian
Reais; (c) 675 Chilean Pesos; (d) 3,060 Colombian Pesos;
(e) 0.95 Euros; (f) 4.45 Ghanaian Cedi; (g) 68.60
Indian Rupees; (h) 21.50 Mexican Pesos; (i) 320.00 Nigerian
Naira; (j) 3.40 Peruvian Soles; (k) 14.40 South African
Rand; and (l) 3,650 Ugandan Shillings.
Additional information pertaining to the impact of foreign
currency and London Interbank Offered Rate (LIBOR) fluctuations on
the Company’s outlook has been provided in the supplemental
disclosure package available on its website. The impact of foreign
currency fluctuations on net income is not provided, as the impact
on all components of the net income measure cannot be calculated
without unreasonable effort.
2017 Outlook ($ in millions)
Full Year 2017
MidpointGrowth
Total property revenue(1) $ 6,210 to $ 6,390 10.3 %
Net income 1,175 to 1,245 24.7 % Adjusted EBITDA 3,810 to 3,910 8.6
% Consolidated AFFO 2,700 to 2,800 10.4 % _______________ (1)
Includes U.S. property revenue of $3,445 to $3,505
and international property revenue of $2,765 to $2,885 reflecting
midpoint growth rates of 3.1% and 20.6%, respectively. The U.S.
growth rate reflects a negative impact of 1.2% from the
non-recurrence of approximately $39 million in decommissioning
revenue from 2016 and 1.8% associated with a decrease in non-cash
straight-line revenue recognition. International property revenue
reflects the Company’s Latin America, EMEA and Asia segments.
2017 Outlook for Total Property
revenue, at the midpoint, includes the following
components(1): ($ in millions, totals may not add
due to rounding.)
U.S. Property
InternationalProperty(2)
Total Property International pass-through revenue
$
N/A
$ 890 $ 890 Straight-line revenue 18 40 58 _______________ (1)
For additional discussion regarding these components,
please refer to “Revenue Components” below. (2) International
property revenue reflects the Company’s Latin America, EMEA and
Asia segments.
2017 Outlook
growth, at the midpoint, includes the following
components(1):
Total PropertyRevenue
AdjustedEBITDA
ConsolidatedAFFO
Outlook midpoint growth 10.3% 8.6% 10.4% Estimated impact of
fluctuations in foreign currency exchange rates (0.9)% (0.7)%
(0.7)% Estimated impact of straight-line revenue and expense
recognition (1.6)% (2.2)% —% Estimated impact of international
pass-through revenue 1.6% —% —% _______________ (1)
Growth components for net income are not provided, as the impact of
each of the line items on the measure cannot be calculated without
unreasonable effort.
2017 Outlook growth, at the midpoint,
includes the following components(1): (Totals may
not add due to rounding.)
U.S. Property
InternationalProperty(2)
TotalProperty
Organic Tenant Billings ~6% ~10% ~7-8% New Site Tenant Billings
~0.1% ~16% ~5-6% Total Tenant Billings Growth >6% >25%
>12% _______________ (1) For additional discussion
regarding the component growth rates, please refer to “Revenue
Components” below. (2) International property revenue reflects the
Company’s Latin America, EMEA and Asia segments.
Outlook for Capital Expenditures: ($ in
millions) (Totals may not add due to rounding.)
Full Year
2017 Discretionary capital projects(1) $ 145 to $
175 Ground lease purchases 150 to 160 Start-up capital projects 165
to 185 Redevelopment 185 to 215 Capital improvement 140 to 150
Corporate 15 — 15 Total $ 800 to $ 900
_______________ (1) Includes the construction of
approximately 2,500 to 3,500 communications sites globally.
Reconciliation of Outlook for Adjusted EBITDA to Net
income: ($ in millions) (Totals may not add due
to rounding.)
Full Year 2017 Net income $ 1,175
to $ 1,245 Interest expense 750 to 770
Depreciation, amortization and accretion 1,535 to 1,565 Income tax
provision 143 to 133 Stock-based compensation expense 91 — 91
Other, including other operating expenses,
interest income, gain (loss) on retirement of long-term
obligations and other income (expense)
116 to 106 Adjusted EBITDA $ 3,810 to $ 3,910
Reconciliation of Outlook for Consolidated AFFO to Net
income: ($ in millions) (Totals may not add due
to rounding.)
Full Year 2017 Net income $ 1,175
to $ 1,245 Straight-line revenue (58 ) — (58 )
Straight-line expense 66 — 66 Depreciation, amortization and
accretion 1,535 to 1,565 Stock-based compensation expense 91 — 91
Deferred portion of income tax 7 to 23
Other, including other operating expenses,
amortization of deferred financing costs, capitalized
interest, debt discounts and premiums,
gain (loss) on retirement of long-term obligations, other
income (expense), long-term deferred
interest charges and dividends on preferred stock
39 to 33 Capital improvement capital expenditures (140 ) to (150 )
Corporate capital expenditures (15 ) — (15 ) Consolidated AFFO $
2,700 to $ 2,800
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, 2016 and its outlook for 2017.
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)
260-0702International dial-in: (612) 288-0318Passcode: 416147
When available, a replay of the call can be accessed until 11:59
p.m. ET on March 13, 2017. The replay dial-in numbers are as
follows:
U.S./Canada dial-in: (800)
475-6701International dial-in: (320) 365-3844Passcode: 416147
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 approximately
147,000 communications sites. For more information about American
Tower, please visit the “Earnings Materials” and “Company &
Industry Resources” sections of our investor relations website at
www.americantower.com.
Non-GAAP and Defined Financial Measures
In addition to the results prepared in accordance with generally
accepted accounting principles in the United States (GAAP) provided
throughout this press release, the Company has presented the
following non-GAAP and defined financial measures: Gross Margin,
Operating Profit, Operating Profit Margin, Adjusted EBITDA,
Adjusted EBITDA Margin, NAREIT Funds From Operations (FFO)
attributable to American Tower Corporation common stockholders,
Consolidated Adjusted Funds From Operations (AFFO), AFFO
attributable to American Tower Corporation common stockholders,
Consolidated AFFO per Share, AFFO attributable to American Tower
Corporation common stockholders per Share, Free Cash Flow, Net Debt
and Net Leverage Ratio. In addition, the Company presents: Tenant
Billings, Tenant Billings Growth, Organic Tenant Billings Growth
and New Site Tenant Billings Growth.
These measures are not intended to replace financial performance
measures determined in accordance with GAAP. Rather, they are
presented as additional information because management believes
they are useful indicators of the current financial performance of
the Company's core businesses and are commonly used across its
industry peer group. As outlined in detail below, the Company
believes that these measures can assist in comparing company
performance on a consistent basis irrespective of depreciation and
amortization or capital structure, while also providing valuable
incremental insight into the underlying operating trends of its
business.
Depreciation and amortization can vary significantly among
companies depending on accounting methods, particularly where
acquisitions or non-operating factors, including historical cost
basis, are involved. Notwithstanding the foregoing, the Company's
Non-GAAP and Defined Financial measures may not be comparable to
similarly titled measures used by other companies.
Revenue Components
In addition to reporting total revenue, the Company believes
that providing transparency around the components of its revenue
provides investors with insight into the indicators of the
underlying demand for, and operating performance of, its real
estate portfolio. Accordingly, the Company has provided disclosure
of the following revenue components: (i) Tenant Billings, (ii) New
Site Tenant Billings; (iii) Organic Tenant Billings; (iv)
International pass-through revenue; (v) Straight-line revenue; (vi)
Pre-paid amortization revenue; and (vii) Other revenue.
Tenant Billings: The majority of the Company’s revenue is
generated from non-cancellable, long-term tenant leases. Revenue
from Tenant Billings reflects several key aspects of the Company’s
real estate business: (i) “colocations/amendments” reflects new
tenant leases for space on existing towers and amendments to
existing leases to add additional tenant equipment; (ii)
“escalations” reflects contractual increases in billing rates,
which are typically tied to fixed percentages or a variable
percentage based on a consumer price index; (iii) “cancellations”
reflects the impact of tenant lease terminations or non-renewals
or, in limited circumstances, when the lease rates on existing
leases are reduced; and (iv) “new sites” reflects the impact of new
property construction and acquisitions.
New Site Tenant Billings: Day-one Tenant Billings
associated with sites that have been built or acquired since the
beginning of the prior-year period. Incremental
colocations/amendments, escalations or cancellations that occur on
these sites after the date of their initial addition to our
portfolio are not included in New Site Tenant Billings. The Company
believes providing New Site Tenant Billings enhances an investor’s
ability to analyze our existing real estate portfolio growth as
well as our development program growth, as the Company’s
construction and acquisition activities can drive variability in
growth rates from period to period.
Organic Tenant Billings: Tenant Billings on sites that
the Company has owned since the beginning of the prior-year period,
as well as Tenant Billings activity on new sites that occurred
after the date of their initial addition to the Company’s
portfolio.
International pass-through revenue: A portion of the
Company’s pass-through revenue is based on power and fuel expense
reimbursements and therefore subject to fluctuations in fuel
prices. As a result, revenue growth rates may fluctuate depending
on the market price for fuel in any given period, which is not
representative of the Company’s real estate business and its
economic exposure to power and fuel costs. Furthermore, this
expense reimbursement mitigates the economic impact associated with
fluctuations in operating expenses, such as power and fuel costs
and land rents in certain of the Company’s markets. As a result,
the Company believes that it is appropriate to provide insight into
the impact of pass-through revenue on certain revenue growth
rates.
Straight-line revenue: Under GAAP, the Company recognizes
revenue on a straight-line basis over the term of the contract for
certain of its tenant leases. Due to the Company’s significant base
of non-cancellable, long-term tenant leases, this can result in
significant fluctuations in growth rates upon tenant lease signings
and renewals (typically increases), when amounts billed or received
upfront upon these events are initially deferred. These signings
and renewals are only a portion of the Company’s underlying
business growth and can distort the underlying performance of our
Tenant Billings Growth. As a result, the Company believes that it
is appropriate to provide insight into the impact of straight-line
revenue on certain growth rates in revenue and select other
measures.
Pre-paid amortization revenue: The Company recovers a
portion of the costs it incurs for the redevelopment and
development of its properties from its tenants. These upfront
payments are then amortized over the initial term of the
corresponding tenant lease. Given this amortization is not
necessarily directly representative of underlying leasing activity
on our real estate portfolio, (i.e.: does not have a renewal option
or escalation as our tenant leases do) the Company believes that it
is appropriate to provide insight into the impact of pre-paid
amortization revenue on certain revenue growth rates to provide
transparency into the underlying performance of our real estate
business.
Foreign currency exchange impact: The majority of the
Company’s international revenue and operating expenses are
denominated in each respective country’s local currency. As a
result, foreign currency fluctuations may distort the underlying
performance of our real estate business from period to period,
depending on the movement of foreign currency exchange rates versus
the U.S. Dollar. The Company believes it is appropriate to quantify
the impact of foreign currency exchange fluctuations to its
reported growth to provide transparency into the underlying
performance of its real estate business.
Other revenue: Typically an immaterial portion of the
Company’s total revenue, Other revenue represents revenue not
captured by the above listed terms and can include items such as
tenant settlements.
Non-GAAP and Defined Financial Measure
Definitions
Tenant Billings Growth: The increase or decrease
resulting from a comparison of Tenant Billings for a current period
with Tenant Billings for the corresponding prior-year period, in
each case adjusted for foreign currency exchange fluctuations. The
Company believes this measure provides valuable insight into the
growth in recurring Tenant Billings and underlying demand for its
real estate portfolio.
Organic Tenant Billings Growth: The portion of Tenant
Billings Growth attributable to Organic Tenant Billings. The
Company believes that organic growth is a useful measure of its
ability to add tenancy and incremental revenue to its assets for
the reported period, which enables investors and analysts to gain
additional insight into the relative attractiveness, and therefore
the value, of the Company’s property assets.
New Site Tenant Billings Growth: The portion of Tenant
Billings Growth attributable to New Site Tenant Billings. The
Company believes this measure provides valuable insight into the
growth attributable to Tenant Billings from recently acquired or
constructed properties.
Gross Margin: Revenues less operating expenses, excluding
stock-based compensation expense recorded in costs of operations,
depreciation, amortization and accretion, selling, general,
administrative and development expense and other operating
expenses. The Company believes this measure provides valuable
insight into the site-level profitability of its assets.
Operating Profit: Gross Margin less selling, general,
administrative and development expense, excluding stock-based
compensation expense and corporate expenses. The Company believes
this measure provides valuable insight into the site-level
profitability of its assets while also taking into account the
overhead expenses required to manage each of its operating
segments.
For segment reporting purposes, the Latin America property
segment Operating Profit and Gross Margin also include interest
income, TV Azteca, net. Operating Profit and Gross Margin are
before interest income, interest expense, gain (loss) on retirement
of long-term obligations, other income (expense), net income (loss)
attributable to noncontrolling interest and income tax benefit
(provision).
Operating Profit Margin: The percentage that results from
dividing Operating Profit by revenue.
Adjusted EBITDA: Net income before income (loss) from
equity method investments, income tax benefit (provision), other
income (expense), gain (loss) on retirement of long-term
obligations, interest expense, interest income, other operating
income (expense), depreciation, amortization and accretion and
stock-based compensation expense. The Company believes this measure
provides valuable insight into the profitability of its operations
while at the same time taking into account the central overhead
expenses required to manage its global operations. In addition, it
is a widely used performance measure across our telecommunications
real estate sector.
Adjusted EBITDA Margin: The percentage that results from
dividing Adjusted EBITDA by total revenue.
NAREIT Funds From Operations (FFO), as defined by the
National Association of Real Estate Investment Trusts (NAREIT),
attributable to American Tower Corporation common stockholders:
Net income before gains or losses from the sale or disposal of real
estate, real estate related impairment charges, real estate related
depreciation, amortization and accretion and dividends on preferred
stock, and including adjustments for (i) unconsolidated affiliates
and (ii) noncontrolling interests. The Company believes this
measure provides valuable insight into the operating performance of
its property assets by excluding the charges described above,
particularly depreciation expenses, given the high initial,
up-front capital intensity of the Company’s operating model. In
addition, it is a widely used performance measure across our
telecommunications real estate sector.
Consolidated Adjusted Funds From Operations (AFFO):
NAREIT FFO attributable to American Tower Corporation common
stockholders before (i) straight-line revenue and expense, (ii)
stock-based compensation expense, (iii) the deferred portion of
income tax, (iv) non-real estate related depreciation, amortization
and accretion, (v) amortization of deferred financing costs,
capitalized interest, debt discounts and premiums and long-term
deferred interest charges, (vi) other income (expense), (vii) gain
(loss) on retirement of long-term obligations, (viii) other
operating income (expense), and adjustments for (ix) unconsolidated
affiliates and (x) noncontrolling interests, less cash payments
related to capital improvements and cash payments related to
corporate capital expenditures. The Company believes this measure
provides valuable insight into the operating performance of its
property assets by further adjusting the NAREIT FFO attributable to
American Tower Corporation common stockholders metric to exclude
the factors outlined above, which if unadjusted, may cause material
fluctuations in NAREIT FFO attributable to American Tower
Corporation common stockholders growth from period to period that
would not be representative of the underlying performance of our
property assets in those periods. In addition, it is a widely used
performance measure across our telecommunications real estate
sector.
Adjusted Funds From Operations (AFFO) attributable to
American Tower Corporation common stockholders: Consolidated
AFFO, excluding the impact of noncontrolling interests on both
NAREIT FFO attributable to American Tower Corporation common
stockholders as well as the other line items included in the
calculation of Consolidated AFFO. The Company believes that
providing this additional metric enhances transparency, given a
significantly larger minority interest component of its business as
a result of the Company’s Viom transaction and European joint
venture with PGGM, which both closed in 2016.
Consolidated AFFO per Share: Consolidated AFFO divided by
the diluted weighted average common shares outstanding.
AFFO attributable to American Tower Corporation common
stockholders per Share: AFFO attributable to American Tower
Corporation common stockholders divided by the diluted weighted
average common shares outstanding.
Free Cash Flow: Cash provided by operating activities
less total cash capital expenditures, including payments on capital
leases of property and equipment. The Company believes that Free
Cash Flow is useful to investors as the basis for comparing our
performance and coverage ratios with other companies in its
industry.
Net Debt: Total long-term debt less cash and cash
equivalents.
Net Leverage Ratio: Net Debt divided by the quarter’s
annualized Adjusted EBITDA (the quarter’s Adjusted EBITDA
multiplied by four). The Company believes that including this
calculation is important for investors and analysts given it is a
critical component underlying its credit agency ratings.
Cautionary Language Regarding Forward-Looking
Statements
This press release contains “forward-looking statements”
concerning our goals, beliefs, expectations, strategies,
objectives, plans, future operating results and underlying
assumptions, and other statements that are not necessarily based on
historical facts. Examples of these statements include, but are not
limited to, statements regarding our full year 2017 outlook and
other targets, foreign currency exchange rates, our expectation
regarding the leasing demand for communications real estate and
potential reinstatement of our share repurchase program. 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
infrastructure would materially and adversely affect our operating
results, and we cannot control that demand; (2) increasing
competition for tenants in the tower industry may materially and
adversely affect our revenue; (3) 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; (4) 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; (5) 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; (6) our expansion initiatives involve a number of risks and
uncertainties, including those related to integrating acquired or
leased assets, that could adversely affect our operating results,
disrupt our operations or expose us to additional risk; (7)
competition for assets could adversely affect our ability to
achieve our return on investment criteria; (8) new technologies or
changes in a tenant’s business model could make our tower leasing
business less desirable and result in decreasing revenues; (9) our
leverage and debt service obligations may materially and adversely
affect our ability to raise additional financing to fund capital
expenditures, future growth and expansion initiatives and to
satisfy our distribution requirements; (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)
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; (14) if we
are unable to protect our rights to the land under our towers, it
could adversely affect our business and operating results; (15) 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; (16) our costs could increase and our revenues
could decrease due to perceived health risks from radio emissions,
especially if these perceived risks are substantiated; (17) we
could have liability under environmental and occupational safety
and health laws; and (18) our towers, data centers or computer
systems may be affected by natural disasters and other unforeseen
events for which our insurance may not provide adequate coverage.
For additional information regarding factors that may cause actual
results to differ materially from those indicated in our
forward-looking statements, we refer you to the information
contained in Item 1A of our Form 10-K for the year ended December
31, 2015, under the caption “Risk Factors”. We undertake no
obligation to update the information contained in this press
release to reflect subsequently occurring events or
circumstances.
UNAUDITED CONSOLIDATED BALANCE
SHEETS(In thousands)
December 31, 2016 December 31, 2015
ASSETS CURRENT ASSETS: Cash and cash equivalents $ 787,161 $
320,686 Restricted cash 149,281 142,193 Short-term investments
4,026 — Accounts receivable, net 308,369 227,354 Prepaid and other
current assets 441,033 306,235 Total current assets
1,689,870 996,468 PROPERTY AND EQUIPMENT, net
10,517,258 9,866,424 GOODWILL 5,070,680 4,091,805 OTHER INTANGIBLE
ASSETS, net 11,274,611 9,837,876 DEFERRED TAX ASSET 195,678 212,041
DEFERRED RENT ASSET 1,289,530 1,166,755 NOTES RECEIVABLE AND OTHER
NON-CURRENT ASSETS 841,523 732,903 TOTAL $ 30,879,150
$ 26,904,272
LIABILITIES CURRENT LIABILITIES:
Accounts payable $ 118,666 $ 96,714 Accrued expenses 620,563
516,413 Distributions payable 250,550 210,027 Accrued interest
157,297 115,672 Current portion of long-term obligations 238,806
50,202 Unearned revenue 245,387 211,001 Total current
liabilities 1,631,269 1,200,029 LONG-TERM OBLIGATIONS
18,294,659 17,068,807 ASSET RETIREMENT OBLIGATIONS 965,507 856,936
DEFERRED TAX LIABILITY 777,572 106,333 OTHER NON-CURRENT
LIABILITIES 1,142,723 959,349 Total liabilities
22,811,730 20,191,454
COMMITMENTS AND
CONTINGENCIES REDEEMABLE NONCONTROLLING INTERESTS
1,091,220 —
EQUITY: Preferred stock, Series A 60 60
Preferred stock, Series B 14 14 Common stock 4,299 4,267 Additional
paid-in capital 10,043,559 9,690,609 Distributions in excess of
earnings (1,076,965 ) (998,535 ) Accumulated other comprehensive
loss (1,999,332 ) (1,836,996 ) Treasury stock (207,740 ) (207,740 )
Total American Tower Corporation equity 6,763,895 6,651,679
Noncontrolling interests 212,305 61,139 Total equity
6,976,200 6,712,818 TOTAL $ 30,879,150 $
26,904,272
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share data)
Three Months Ended December
31,
Twelve Months EndedDecember
31,
2016 2015 2016 2015
REVENUES: Property $ 1,521,347 $ 1,251,124 $ 5,713,126 $ 4,680,388
Services 18,202 28,917 72,542 91,128
Total operating revenues 1,539,549 1,280,041
5,785,668 4,771,516 OPERATING EXPENSES: Costs of
operations (exclusive of items shown separately below):
Property (including stock-based
compensation expense of $425, $396,
$1,750 and $1,614, respectively)
482,308 345,812 1,762,694 1,275,436
Services (including stock-based
compensation expense of $110, $103,
$688 and $439, respectively)
5,688 10,569 27,695 33,432 Depreciation, amortization and accretion
388,237 352,356 1,525,635 1,285,328
Selling, general, administrative and
development expense (including stock-based
compensation expense of $19,151, $17,787,
$87,460 and $88,484, respectively)
138,309 143,375 543,395 497,835 Other operating expenses 35,711
25,805 73,220 66,696 Total operating
expenses 1,050,253 877,917 3,932,639 3,158,727
OPERATING INCOME 489,296 402,124 1,853,029
1,612,789 OTHER INCOME (EXPENSE): Interest income, TV
Azteca, net of interest expense of $317, $40, $1,163 and $820,
respectively 2,754 2,958 10,960 11,209 Interest income 9,240 4,608
25,618 16,479 Interest expense (186,049 ) (149,721 ) (717,125 )
(595,949 ) Gain (loss) on retirement of long-term obligations 338
(813 ) 1,168 (79,606 )
Other expense (including unrealized
foreign currency losses (gains) of $19,895,
($36,398), $23,439 and $71,473,
respectively)
(21,896 ) (11,669 ) (47,790 ) (134,960 ) Total other expense
(195,613 ) (154,637 ) (727,169 ) (782,827 ) INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES 293,683 247,487 1,125,860 829,962
Income tax provision(1) (60,830 ) (25,892 ) (155,501 ) (157,955 )
NET INCOME 232,853 221,595 970,359 672,007 Net (income) loss
attributable to noncontrolling interests (3,646 ) 11,107
(13,934 ) 13,067 NET INCOME ATTRIBUTABLE TO AMERICAN TOWER
CORPORATION STOCKHOLDERS 229,207 232,702 956,425 685,074 Dividends
on preferred stock (26,781 ) (26,781 ) (107,125 ) (90,163 ) NET
INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON
STOCKHOLDERS $ 202,426 $ 205,921 $ 849,300 $
594,911 NET INCOME PER COMMON SHARE AMOUNTS: Basic net
income attributable to American Tower Corporation common
stockholders $ 0.48 $ 0.49 $ 2.00 $ 1.42
Diluted net income attributable to American Tower
Corporation common stockholders $ 0.47 $ 0.48 $ 1.98
$ 1.41 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
BASIC 426,071 423,736 425,143 418,907
DILUTED 429,896 427,802 429,283 423,015
_______________ (1) Full year 2015 amount includes
the impact of a one-time cash tax charge of approximately $93
million as part of the tax election related to the GTP REIT
recorded in the third quarter of 2015.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(In thousands)
Twelve Months Ended December 31, 2016
2015 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $
970,359 $ 672,007 Adjustments to reconcile net income to cash
provided by operating activities: Depreciation, amortization and
accretion 1,525,635 1,285,328 Stock-based compensation expense
89,898 90,537 (Gain) loss on early retirement of long-term
obligations (1,168 ) 79,750 Other non-cash items reflected in
statements of operations 222,689 190,718 Decrease in restricted
cash 5,256 16,112 Increase in net deferred rent balances (63,896 )
(98,883 ) Increase in assets (71,877 ) (147,425 ) Increase in
liabilities 26,708 94,908 Cash provided by operating
activities 2,703,604 2,183,052 CASH FLOWS FROM
INVESTING ACTIVITIES: Payments for purchase of property and
equipment and construction activities (682,505 ) (728,753 )
Payments for acquisitions, net of cash acquired (1,416,373 )
(1,961,056 ) Payment for Verizon transaction (4,748 ) (5,059,462 )
Proceeds from sales of short-term investments and other non-current
assets 13,056 1,032,320 Payments for short-term investments (750 )
(1,022,816 ) Deposits, restricted cash and other (16,126 ) (1,968 )
Cash used for investing activities (2,107,446 ) (7,741,735 ) CASH
FLOWS FROM FINANCING ACTIVITIES: Proceeds from short-term
borrowings, net — 9,043 Borrowings under credit facilities
2,446,845 6,126,618 Proceeds from issuance of senior notes, net
3,236,383 1,492,298 Proceeds from term loan — 500,000 Proceeds from
other borrowings — 54,549 Proceeds from issuance of securities in
securitization transaction — 875,000 Repayments of notes payable,
credit facilities, term loan, senior notes and capital leases(1)
(5,093,747 ) (6,393,405 ) Contributions from noncontrolling
interest holders, net 238,480 7,201 Proceeds from stock options and
stock purchase plan 92,473 50,716 Distributions paid on preferred
stock (107,125 ) (84,647 ) Distributions paid on common stock
(886,116 ) (710,852 ) Proceeds from the issuance of common stock,
net — 2,440,327 Proceeds from the issuance of preferred stock, net
— 1,337,946 Payment for early retirement of long-term obligations
(86 ) (85,672 ) Deferred financing costs and other financing
activities (26,401 ) (30,021 ) Cash (used for) provided by
financing activities (99,294 ) 5,589,101 Net effect of
changes in foreign currency exchange rates on cash and cash
equivalents (30,389 ) (23,224 ) NET INCREASE IN CASH AND CASH
EQUIVALENTS 466,475 7,194 CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 320,686 313,492 CASH AND CASH EQUIVALENTS, END
OF PERIOD $ 787,161 $ 320,686 CASH PAID FOR INCOME
TAXES, NET $ 96,241 $ 157,058 CASH PAID FOR INTEREST
$ 645,092 $ 577,952 _______________ (1)
Twelve months ended December 31, 2016 includes $18.9 million of
payments on capital leases of property and equipment.
UNAUDITED CONSOLIDATED RESULTS FROM
OPERATIONS, BY SEGMENT($ in millions. Totals may not add due to
rounding.)
Three Months Ended December 31, 2016 Property
Services Total U.S.
LatinAmerica
Asia EMEA
TotalInternational
TotalProperty
Segment revenues $ 852 $ 265 $ 270 $ 134 $ 670 $ 1,521 $ 18 $ 1,540
Segment operating expenses(1) 185 91 151 56 297 482 6 487 Interest
income, TV Azteca, net — 3 — — 3
3 — 3 Segment Gross Margin $ 667 $ 177
$ 119 $ 79 $ 375 $ 1,042 $ 13
$ 1,055 Segment SG&A(1) 40 16 12
15 43 83 4 86 Segment
Operating Profit $ 627 $ 162 $ 107 $ 64
$ 333 $ 960 $ 9 $ 969 Segment Operating
Profit Margin 74 % 61 % 40 % 47 % 50 % 63 % 50 % 63 %
Revenue Growth 2.8 % 13.2 % 324.9 % 8.1 % 58.6 % 21.6 % (37.1 )%
20.3 % Total Tenant Billings Growth 6.0 % 17.6 % 347.1 % 16.0 %
61.0 % 20.8 % Organic Tenant Billings Growth 5.8 % 13.1 % 19.1 %
11.2 % 13.3 % 7.8 %
Revenue
Components(2) Prior-Year Tenant Billings $ 755 $ 150 $
37 $ 91 $ 279 $ 1,034 Colocations/Amendments 34 9 8 5 22 57
Escalations 22 11 3 5 19 41 Cancellations (14 ) (1 ) (3 ) (1 ) (5 )
(19 ) Other 2 0 (0 ) 1 1 3
Organic Tenant Billings $ 799 $ 170 $ 44 $ 102
$ 316 $ 1,115 New Site Tenant Billings 1
7 122 4 133 134 Total
Tenant Billings $ 800 $ 177 $ 166 $ 106
$ 449 $ 1,249 Foreign Currency Exchange Impact(3) —
4 (4 ) (6 ) (6 ) (6 ) Total Tenant Billings (Current
Period) $ 800 $ 181 $ 163 $ 100 $ 444
$ 1,243 Straight-Line Revenue 17 8 5 1 14 31
Prepaid Amortization Revenue 25 1 — 0 1 26 Other Revenue 10 7 (5 )
(2 ) 0 10 International Pass-Through Revenue — 66 110 46 222 222
Foreign Currency Exchange Impact(4) — 3 (3 ) (11 )
(10 ) (10 ) Total Property Revenue (Current Period) $ 852 $
265 $ 270 $ 134 $ 670 $ 1,521
_______________ (1) Excludes stock-based compensation
expense. (2) All components of revenue, except those labeled
current period, have been translated at prior period foreign
exchange rates. (3) Reflects foreign currency exchange impact on
all components of Total Tenant Billings. (4) Reflects foreign
currency exchange impact on components of revenue, other than Total
Tenant Billings.
UNAUDITED CONSOLIDATED RESULTS FROM
OPERATIONS, BY SEGMENT (CONTINUED)($ in millions. Totals may
not add due to rounding.)
Three Months Ended December 31, 2015 Property
Services Total U.S.
LatinAmerica
Asia EMEA
TotalInternational
TotalProperty
Segment revenues $ 829 $ 234 $ 64 $ 124 $ 422 $ 1,251 $ 29 $ 1,280
Segment operating expenses(1) 176 83 33 54 169 345 10 356 Interest
income, TV Azteca, net — 3 — — 3
3 — 3 Segment Gross Margin $ 653 $ 155
$ 31 $ 71 $ 256 $ 909 $ 18
$ 927 Segment SG&A(1) 49 18 6
15 38 87 5 92 Segment
Operating Profit $ 604 $ 137 $ 25 $ 56
$ 218 $ 821 $ 13 $ 835 Segment
Operating Profit Margin 73 % 58 % 39 % 45 % 52 % 66 % 46 % 65 %
Revenue Growth 21.8 % 10.0 % 11.4 % 57.5 % 21.0 % 21.5 %
75.7 % 22.3 % Total Tenant Billings Growth 21.1 % 32.5 % 22.5 %
85.7 % 43.3 % 27.3 % Organic Tenant Billings Growth 6.1 % 12.4 %
12.4 % 16.0 % 13.2 % 8.1 %
Revenue
Components(2) Prior-Year Tenant Billings $ 623 $ 156 $
32 $ 55 $ 243 $ 867 Colocations/Amendments 33 11 4 5 20 53
Escalations 19 9 1 4 14 33 Cancellations (14 ) (2 ) (1 ) (0 ) (2 )
(17 ) Other (0 ) 1 0 (0 ) 1 1 Organic
Tenant Billings $ 661 $ 175 $ 36 $ 64 $
276 $ 937 New Site Tenant Billings 93 31
3 39 73 167 Total Tenant
Billings $ 755 $ 206 $ 40 $ 103 $ 349
$ 1,104 Foreign Currency Exchange Impact(3) —
(56 ) (2 ) (11 ) (70 ) (70 ) Total Tenant Billings (Current Period)
$ 755 $ 150 $ 37 $ 91 $ 279 $
1,034 Straight-Line Revenue 30 19 0 2 21 51 Prepaid
Amortization Revenue 22 0 — 0 0 23 Other Revenue 22 7 0 1 8 31
International Pass-Through Revenue — 85 27 34 147 147 Foreign
Currency Exchange Impact(4) — (28 ) (2 ) (4 ) (33 ) (33 )
Total Property Revenue (Current Period) $ 829 $ 234 $
64 $ 124 $ 422 $ 1,251 _______________
(1) Excludes stock-based compensation expense. (2)
All components of revenue, except those labeled current period,
have been translated at prior period foreign exchange rates. (3)
Reflects foreign currency exchange impact on all components of
Total Tenant Billings. (4) Reflects foreign currency exchange
impact on components of revenue, other than Total Tenant Billings.
UNAUDITED CONSOLIDATED RESULTS FROM
OPERATIONS, BY SEGMENT (CONTINUED)($ in millions. Totals may
not add due to rounding.)
Twelve Months Ended December 31, 2016 Property
Services Total U.S.
LatinAmerica
Asia EMEA
TotalInternational
TotalProperty
Segment revenues $ 3,370 $ 986 $ 828 $ 530 $ 2,343 $ 5,713 $ 73 $
5,786 Segment operating expenses(1) 733 338 466 224 1,028 1,761 27
1,788 Interest income, TV Azteca, net — 11 — —
11 11 — 11 Segment Gross Margin
$ 2,637 $ 659 $ 362 $ 306 $ 1,327
$ 3,963 $ 46 $ 4,009 Segment
SG&A(1) 148 61 48 61 170 317
13 330 Segment Operating Profit $ 2,489
$ 598 $ 313 $ 245 $ 1,157 $ 3,646
$ 33 $ 3,679 Segment Operating Profit Margin
74 % 61 % 38 % 46 % 49 % 64 % 46 % 64 % Revenue Growth 6.7 %
11.3 % 241.7 % 34.0 % 53.9 % 22.1 % (20.4 )% 21.3 % Total Tenant
Billings Growth 8.9 % 21.2 % 259.4 % 42.4 % 59.2 % 22.4 % Organic
Tenant Billings Growth 5.8 % 13.2 % 13.4 % 14.1 % 13.5 % 7.8 %
Revenue Components(2) Prior-Year Tenant
Billings $ 2,881 $ 620 $ 142 $ 292 $ 1,055 $ 3,936
Colocations/Amendments 129 37 22 22 81 210 Escalations 83 47 7 19
73 155 Cancellations (49 ) (4 ) (9 ) (2 ) (15 ) (64 ) Other 3
2 (1 ) 2 3 6 Organic Tenant
Billings $ 3,046 $ 702 $ 161 $ 334 $
1,197 $ 4,243 New Site Tenant Billings 91 50
350 83 482 573 Total Tenant
Billings $ 3,138 $ 751 $ 511 $ 417 $
1,679 $ 4,817 Foreign Currency Exchange Impact(3) —
(69 ) (20 ) (27 ) (117 ) (117 ) Total Tenant Billings
(Current Period) $ 3,138 $ 682 $ 491 $ 389
$ 1,563 $ 4,700 Straight-Line Revenue
79 40 14 4 59 138 Prepaid Amortization Revenue 94 2 — 0 2 97 Other
Revenue 59 9 (6 ) (1 ) 2 61 International Pass-Through Revenue —
281 343 159 783 783 Foreign Currency Exchange Impact(4) —
(28 ) (14 ) (23 ) (65 ) (65 ) Total Property Revenue (Current
Period) $ 3,370 $ 986 $ 828 $ 530 $
2,343 $ 5,713 _______________ (1)
Excludes stock-based compensation expense. (2) All components of
revenue, except those labeled current period, have been translated
at prior period foreign exchange rates. (3) Reflects foreign
currency exchange impact on all components of Total Tenant
Billings. (4) Reflects foreign currency exchange impact on
components of revenue, other than Total Tenant Billings.
UNAUDITED CONSOLIDATED RESULTS FROM
OPERATIONS, BY SEGMENT (CONTINUED)($ in millions. Totals may
not add due to rounding.)
Twelve Months Ended December 31, 2015 Property
Services Total U.S.
LatinAmerica
Asia EMEA
TotalInternational
TotalProperty
Segment revenues $ 3,158 $ 886 $ 242 $ 395 $ 1,523 $ 4,680 $ 91 $
4,772 Segment operating expenses(1) 678 305 127 164 595 1,274 33
1,307 Interest income, TV Azteca, net — 11 — —
11 11 — 11 Segment Gross Margin
$ 2,479 $ 592 $ 115 $ 231 $ 939
$ 3,418 $ 58 $ 3,476 Segment SG&A(1) 139
62 23 49 134 272 16
288 Segment Operating Profit $ 2,340 $ 530
$ 93 $ 183 $ 805 $ 3,146 $ 42
$ 3,188 Segment Operating Profit Margin 74 % 60 % 38
% 46 % 53 % 67 % 47 % 67 % Revenue Growth 19.6 % 6.4 % 10.3
% 25.4 % 11.4 % 16.8 % (2.2 )% 16.4 % Total Tenant Billings Growth
18.9 % 33.7 % 20.8 % 50.6 % 36.0 % 23.8 % Organic Tenant Billings
Growth 6.4 % 11.5 % 11.8 % 14.8 % 12.3 % 8.1 %
Revenue Components(2) Prior-Year Tenant Billings $
2,422 $ 606 $ 124 $ 225 $ 955 $ 3,377 Colocations/Amendments 141 42
17 17 76 217 Escalations 75 32 3 17 51 126 Cancellations (56 ) (7 )
(6 ) (0 ) (13 ) (69 ) Other (5 ) 4 (0 ) 0 4 (2
) Organic Tenant Billings $ 2,577 $ 676 $ 138
$ 258 $ 1,073 $ 3,649 New Site Tenant Billings
304 134 11 80 226 530
Total Tenant Billings $ 2,881 $ 811 $ 149 $
338 $ 1,299 $ 4,179 Foreign Currency Exchange
Impact(3) — (191 ) (7 ) (46 ) (244 ) (244 ) Total Tenant
Billings (Current Period) $ 2,881 $ 620 $ 142
$ 292 $ 1,055 $ 3,936 Straight-Line
Revenue 119 34 1 7 43 162 Prepaid Amortization Revenue 81 2 — 0 2
83 Other Revenue 76 17 (0 ) 3 20 96 International Pass-Through
Revenue — 289 104 108 502 502 Foreign Currency Exchange Impact(4) —
(77 ) (5 ) (17 ) (99 ) (99 ) Total Property Revenue (Current
Period) $ 3,158 $ 886 $ 242 $ 395 $
1,523 $ 4,680 _______________ (1)
Excludes stock-based compensation expense. (2) All components of
revenue, except those labeled current period, have been translated
at prior period foreign exchange rates. (3) Reflects foreign
currency exchange impact on all components of Total Tenant
Billings. (4) Reflects foreign currency exchange impact on
components of revenue, other than Total Tenant Billings.
UNAUDITED SELECTED CONSOLIDATED FINANCIAL INFORMATION($
in thousands. Totals may not add due to rounding.)
The following table reflects the estimated impact of foreign
currency exchange rate fluctuations, international pass-through
revenue and straight-line revenue and expense recognition on total
property revenue, Adjusted EBITDA and Consolidated AFFO growth
rates.
Components of
Growth(1)(2):
Three months ended December
31, 2016
PropertyRevenue
AdjustedEBITDA
ConsolidatedAFFO
Growth 21.6 % 16.7 % 20.9 % Estimated impact of fluctuations in
foreign currency exchange rates (0.5 )% (0.1 )% (0.3 )% Estimated
impact of straight-line revenue and expense recognition (2.3 )%
(2.9 )% — % Estimated impact of international pass-through revenue
6.1 % — % — %
Twelve months ended December 31, 2016
PropertyRevenue
AdjustedEBITDA
ConsolidatedAFFO
Growth 22.1 % 15.9 % 15.8 % Estimated impact of fluctuations
in foreign currency exchange rates (2.6 )% (2.6 )% (2.9 )%
Estimated impact of straight-line revenue and expense recognition
(1.3 )% (1.7 )% — % Estimated impact of international pass-through
revenue 5.2 % — % — % _______________ (1) See
“Non-GAAP and Defined Financial Measures” above. (2) Growth
components for net income are not provided, as the impact of each
of the line items on the measure cannot be calculated without
unreasonable effort.
The reconciliation of net income to Adjusted EBITDA and the
calculation of Adjusted EBITDA Margin are as follows:
Three Months Ended December
31,
Twelve Months Ended December
31,
2016 2015 2016 2015 Net
income $ 232,853 $ 221,595 $ 970,359 $ 672,007 Income tax provision
60,830 25,892 155,501 157,955 Other expense 21,896 11,669 47,790
134,960 (Gain) loss on retirement of long-term obligations (338 )
813 (1,168 ) 79,606 Interest expense 186,049 149,721 717,125
595,949 Interest income (9,240 ) (4,608 ) (25,618 ) (16,479 ) Other
operating expenses 35,711 25,805 73,220 66,696 Depreciation,
amortization and accretion 388,237 352,356 1,525,635 1,285,328
Stock-based compensation expense 19,686 18,286 89,898
90,537 Adjusted EBITDA $ 935,684 $ 801,529
$ 3,552,742 $ 3,066,559 Total revenue
1,539,549 1,280,041 5,785,668 4,771,516
Adjusted EBITDA Margin 61 % 63 % 61 % 64 %
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE
CALCULATION OF DEFINED FINANCIAL MEASURES($ in thousands,
except per share data. Totals may not add due to rounding.)
The reconciliation of NAREIT FFO attributable to American
Tower Corporation common stockholders to net income and the
calculation of Consolidated AFFO, Consolidated AFFO per Share, AFFO
attributable to American Tower Corporation common stockholders and
AFFO attributable to American Tower Corporation common stockholders
per Share are presented below:
Three Months Ended December
31,
Twelve Months Ended December
31,
2016 2015 2016 2015 Net
income $ 232,853 $ 221,595 $ 970,359 $ 672,007 Real estate related
depreciation, amortization and accretion 345,360 311,066 1,358,927
1,128,340
Losses from sale or disposal of real
estate and real estate related
impairment charges
32,583 17,771 54,465 29,427 Dividends on preferred stock (26,781 )
(26,781 ) (107,125 ) (90,163 ) Adjustments for unconsolidated
affiliates and noncontrolling interests (26,951 ) 5,849
(88,133 ) (6,429 ) NAREIT FFO attributable to AMT common
stockholders $ 557,064 $ 529,500 $ 2,188,493 $
1,733,182 Straight-line revenue (29,771 ) (46,782 ) (131,660
) (154,959 ) Straight-line expense 17,637 16,918 67,764 56,076
Stock-based compensation expense 19,686 18,286 89,898 90,537
Deferred portion of income tax 36,457 (935 ) 59,260 897 GTP REIT
One-time charge(1) — — — 93,044 Non-real estate related
depreciation, amortization and accretion 42,877 41,290 166,708
156,988
Amortization of deferred financing costs,
capitalized interest and debt
discounts and premiums and long-term
deferred interest charges
5,715 6,383 23,139 22,575 Other expense(2) 21,896 11,669 47,790
134,960 (Gain) loss on retirement of long-term obligations (338 )
813 (1,168 ) 79,606 Other operating expense(3) 3,128 8,034 18,755
37,269 Capital improvement capital expenditures (39,797 ) (31,032 )
(110,249 ) (89,867 ) Corporate capital expenditures (6,706 ) (6,567
) (16,438 ) (16,447 ) Adjustments for unconsolidated affiliates and
noncontrolling interests 26,951 (5,849 ) 88,133 6,429
Consolidated AFFO 654,799 541,728
2,490,425 2,150,290 Adjustments for unconsolidated
affiliates and noncontrolling interests(4) (23,827 ) (2,486
) (90,266 ) (33,982 ) AFFO attributable to AMT common stockholders
$ 630,972 $ 539,242 $ 2,400,159 $ 2,116,308
Divided by weighted average diluted shares outstanding
429,896 427,802 429,283 423,015
Consolidated AFFO per Share $ 1.52 $ 1.27 $ 5.80
$ 5.08 AFFO attributable to AMT common stockholders
per Share $ 1.47 $ 1.26 $ 5.59 $ 5.00
_______________ (1) In the third quarter of 2015, the
Company filed a tax election, pursuant to which GTP no longer
operates as a separate REIT for federal and state income tax
purposes. In connection with this election, the Company incurred a
one-time cash tax charge during the third quarter of 2015. As this
charge is non-recurring, the Company does not believe it is an
indication of operating performance and believes it is more
meaningful to present its AFFO metrics excluding its impact.
Accordingly, the Company presents Consolidated AFFO, Consolidated
AFFO per Share, AFFO attributable to American Tower Corporation
common stockholders and AFFO attributable to American Tower
Corporation common stockholders per Share for the twelve months
ended December 31, 2015 excluding this charge. (2) Primarily
includes realized and unrealized (gains) losses on foreign currency
exchange rate fluctuations. (3) Primarily includes integration and
acquisition-related costs. (4) Includes adjustments for the impact
on both NAREIT FFO attributable to American Tower Corporation
common stockholders as well as the other line items included in the
calculation of Consolidated AFFO.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170227005373/en/
American Tower CorporationLeah Stearns, 617-375-7500Senior Vice
President, Treasurer and Investor Relations
American Tower (NYSE:AMT)
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