CONSOLIDATED HIGHLIGHTS
Second Quarter 2019
- Total revenue increased 6.1% to $1,890 million
- Property revenue increased 5.7% to $1,849 million
- Net income increased 38.1% to $434 million
- Adjusted EBITDA increased 9.2% to $1,183 million
- Consolidated AFFO increased 7.8% to $910 million
American Tower Corporation (NYSE: AMT) today reported financial
results for the quarter ended June 30, 2019.
Jim Taiclet, American Tower’s Chief Executive Officer, stated,
“We had another strong quarter in Q2 2019, highlighted by 7.5%
Organic Tenant Billings Growth in the U.S. and sustained momentum
across our international operations. U.S. consumer demand for
mobile data continues to expand more than 30% per year, with
broadly similar usage growth rates in our overseas markets fueling
ongoing demand for tower space. In addition, initial 5G deployments
are now picking up in the U.S. and we are seeing increasing signs
that low and mid-band spectrum on macro towers will serve as a
substantial component of next generation networks.
Our strong second quarter results indicate that our Stand and
Deliver strategy of leading wireless connectivity around the globe
predominantly with macro towers, innovating for a mobile future,
driving efficiency both internally and for the industry and
selectively growing our portfolio to serve our tenants is the right
course for American Tower and our stockholders. Moreover, the
success of this strategy and effective operational execution across
our served markets has led us to raise our full year expectations
for all of our key metrics as we drive towards a successful second
half of 2019.”
CONSOLIDATED OPERATING RESULTS OVERVIEW American Tower
generated the following operating results for the quarter ended
June 30, 2019 (all comparative information is presented against the
quarter ended June 30, 2018).
($ in millions, except per share
amounts.)
Q2 2019(1)
Growth Rate
Total revenue
$
1,890
6.1
%
Total property revenue
$
1,849
5.7
%
Total Tenant Billings Growth
$
80
5.6
%
Organic Tenant Billings Growth
$
49
3.4
%
Property Gross Margin
$
1,300
8.4
%
Property Gross Margin %
70.3
%
Net income(2)
$
434
38.1
%
Net income attributable to AMT common
stockholders(2)
$
429
39.9
%
Net income attributable to AMT common
stockholders per diluted share(2)
$
0.96
39.1
%
Adjusted EBITDA
$
1,183
9.2
%
Adjusted EBITDA Margin %
62.6
%
Nareit Funds From Operations (FFO)
attributable to AMT common stockholders
$
829
16.5
%
Consolidated AFFO
$
910
7.8
%
Consolidated AFFO per Share
$
2.04
7.4
%
AFFO attributable to AMT common
stockholders
$
893
15.3
%
AFFO attributable to AMT common
stockholders per Share
$
2.01
15.5
%
Cash provided by operating activities
$
1,037
10.3
%
Less: total cash capital
expenditures(3)
$
248
8.4
%
Free Cash Flow
$
789
10.9
%
_______________
(1)
Inclusive of the negative impacts of
Indian Carrier Consolidation-Driven Churn (ICCC). For
reconciliations of these impacts on key metrics, please see tables
below.
(2)
Q2 2019 growth rates positively impacted
by the nonrecurrence of an approximately $33 million impairment
charge primarily related to assets in India recognized in Q2
2018.
(3)
Q2 2019 cash capital expenditures include
$6.7 million of finance lease and perpetual land easement payments
reported in cash flows from financing activities in the condensed
consolidated statements of cash flows.
The Company’s operational and financial results during the
second quarter of 2019 were impacted by churn driven by carrier
consolidation in India (Indian Carrier Consolidation-Driven Churn,
“ICCC”). We are disclosing the additional financial metrics below
to provide insight into the underlying long-term trends across the
Company’s business excluding these impacts. We expect ICCC to
impact our operational and financial results at varying rates
throughout the remainder of 2019 and to result in an overall
reduction in Indian contracted tenant revenue. The impacts of ICCC
on net income are not provided, as the impact on all components of
the net income measure cannot be reasonably calculated.
Reconciliation of Indian Carrier
Consolidation-Driven Churn Impact to Operating Results: ($ in
millions, except per share amounts. Totals may not add due to
rounding.)
Q2 2019 Results
Q2 2018 Results
Growth Rates vs. Prior
Year
($ in millions)
As Reported
Impact of ICCC(1)(2)
Normalized
As Reported
Impact of ICCC(1)
Normalized
As Reported
Impact of ICCC(1)(2)
Normalized
Total property revenue
$
1,849
$
88
$
1,937
$
1,749
$
42
$
1,792
5.7
%
2.4
%
8.1
%
Adjusted EBITDA
1,183
59
1,243
1,084
24
1,108
9.2
%
2.9
%
12.1
%
Consolidated AFFO
910
47
957
844
19
864
7.8
%
3.0
%
10.8
%
Consolidated AFFO per Share
$
2.04
$
0.11
$
2.15
$
1.90
$
0.04
$
1.94
7.4
%
3.5
%
10.8
%
Consolidated Organic Tenant Billings
49
63
112
76
25
100
3.4
%
4.3
%
7.7
%
International Organic Tenant Billings
(19
)
63
44
14
25
39
(3.6
)%
11.6
%
8.0
%
_______________
(1)
Reflects the cumulative impacts of ICCC
since 2017.
(2)
Includes the benefit of approximately $9
million of settlement payments related to ICCC in prior
periods.
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” below.
CAPITAL ALLOCATION OVERVIEW
Distributions – During the quarter ended June 30, 2019,
the Company declared the following regular cash distributions to
its common stockholders:
Common Stock Distributions
Q2 2019(1)
Distributions per share
$
0.92
Aggregate amount (in millions)
$
407
Year-over-year per share growth
19.5
%
_______________
(1)
The distribution declared on May 22, 2019
was paid in the third quarter of 2019 to stockholders of record as
of the close of business on June 19, 2019.
Capital Expenditures – During the second quarter of 2019,
total capital expenditures were $248 million, of which $39 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 – During the second quarter of 2019, the
Company spent approximately $43 million to acquire 256
communications sites and other related assets, primarily in
international markets.
Additionally, as previously disclosed, the Company has entered
into a definitive agreement to acquire Eaton Towers Holding Limited
(“Eaton Towers”) for total consideration, including the assumption
of existing debt, of $1.85 billion. Eaton Towers’ portfolio
includes approximately 5,500 communications sites across five
African markets and the transaction is expected to close by the end
of 2019, subject to customary closing conditions and regulatory
approvals.
On July 24, 2019, the Company entered into a definitive
agreement to acquire approximately 400 towers and other related
property interests in the United States for approximately $0.5
billion. The transaction is expected to close in the third quarter
of 2019, subject to customary closing conditions.
Other Events – In April 2019, Tata Teleservices Limited
(“Tata Teleservices”) served notice of exercise of its put options
with respect to 100% of its remaining combined holdings with Tata
Sons in ATC Telecom Infrastructure Private Limited (“ATC TIPL”).
The Company expects to complete the redemption of the remaining put
shares in Q3 2019 for total consideration of approximately INR 24.8
billion (approximately $359.4 million as of June 30, 2019), subject
to regulatory approval. After the completion of the redemption, the
Company will hold an approximately 92% ownership interest in ATC
TIPL.
LEVERAGE AND FINANCING OVERVIEW
Leverage – For the quarter ended June 30, 2019, the
Company’s Net Leverage Ratio was 4.2x net debt (total debt less
cash and cash equivalents) to second quarter 2019 annualized
Adjusted EBITDA.
Calculation of Net Leverage Ratio
($ in millions, totals may not add due to rounding)
As of June 30, 2019
Total debt
$
21,058
Less: Cash and cash equivalents
1,192
Net Debt
19,866
Divided By: Second quarter annualized
Adjusted EBITDA(1)
4,734
Net Leverage Ratio
4.2x
_______________
(1)
Q2 2019 Adjusted EBITDA multiplied by
four.
Liquidity – As of June 30, 2019, the Company had $5.5
billion of total liquidity, consisting of $1.2 billion in cash and
cash equivalents plus the ability to borrow an aggregate of $4.3
billion under its revolving credit facilities, net of any
outstanding letters of credit.
On April 22, 2019, the Company completed its previously
announced redemption of all of its outstanding 5.050% senior
unsecured notes due 2020 for an aggregate principal amount of $700
million.
On June 13, 2019, the Company issued $650.0 million aggregate
principal amount of 2.950% senior unsecured notes due 2025 and
$1.65 billion aggregate principal amount of 3.800% senior unsecured
notes due 2029. The Company used the net proceeds to repay existing
indebtedness under its credit facilities.
FULL YEAR 2019 OUTLOOK The following full year 2019
financial and operational estimates are based on a number of
assumptions that management believes to be reasonable and reflect
the Company’s expectations as of July 31, 2019. Actual results may
differ materially from these estimates as a result of various
factors, and the Company refers you to the cautionary language
regarding “forward-looking” statements included in this press
release when considering this information.
The Company’s outlook is based on the following average foreign
currency exchange rates to 1.00 U.S. Dollar for July 31, 2019
through December 31, 2019: (a) 46.90 Argentinean Pesos; (b) 3.85
Brazilian Reais; (c) 700 Chilean Pesos; (d) 3,270 Colombian Pesos;
(e) 0.89 Euros; (f) 5.45 Ghanaian Cedi; (g) 69.80 Indian Rupees;
(h) 102 Kenyan Shillings; (i) 19.50 Mexican Pesos; (j) 360 Nigerian
Naira; (k) 6,260 Paraguayan Guarani; (l) 3.35 Peruvian Soles; (m)
14.40 South African Rand; and (n) 3,770 Ugandan Shillings.
The Company is raising the midpoint of its full year 2019
outlook for property revenue, net income, Adjusted EBITDA and
Consolidated AFFO by $60 million, $15 million, $60 million and $70
million, respectively.
The Company’s outlook reflects estimated unfavorable impacts of
foreign currency exchange rate fluctuations to property revenue,
Adjusted EBITDA and Consolidated AFFO, of approximately $3 million,
$3 million and $6 million, respectively, as compared to the
Company’s prior 2019 outlook. The impact of foreign currency
exchange rate fluctuations on net income is not provided, as the
impact on all components of the net income measure cannot be
calculated without unreasonable effort.
The Company’s full year 2019 outlook also reflects estimated
cumulative expected unfavorable impacts of ICCC on property
revenue, Adjusted EBITDA and Consolidated AFFO of approximately
$375 million, $261 million and $209 million, respectively,
inclusive of an expected reduction in pass-through revenue of
approximately $85 million and the benefit of approximately $9
million of settlement payments related to ICCC in prior periods,
which was not contemplated within the Company’s prior outlook. The
expected 2019-specific impacts of ICCC to property revenue,
Adjusted EBITDA and Consolidated AFFO are $186 million, $141
million and $113 million, respectively, including $24 million in
lower pass-through revenue and the expected benefit of the
settlement payments. At this time, the Company expects the impacts
of ICCC to last throughout 2019 and anticipates that churn rates in
India will return to lower levels in 2020 and beyond. The Company
is providing key outlook measures adjusted to quantify the impacts
of ICCC on such measures and the impact of ICCC and the Company’s
settlement with Tata Teleservices and related entities (“Tata”) in
the fourth quarter of 2018 on growth rates as it believes that
these adjusted measures better reflect the long-term trajectory of
its recurring business and provide investors with a more
comprehensive analysis of the Company’s operations. The impacts of
ICCC and the Tata settlement on net income are not provided, as the
impact on all components of the net income measure cannot be
calculated without unreasonable effort.
Additional information pertaining to the impact of foreign
currency, London Interbank Offered Rate (“LIBOR”) fluctuations and
ICCC on the Company’s outlook has been provided in the supplemental
disclosure package available on the Company’s website.
2019 Outlook ($ in millions)
Full Year 2019
Midpoint Growth Rates vs.
Prior Year
Total property revenue(1)
$
7,205
to
$
7,335
(0.6)%
Net income
1,590
to
1,660
28.5%
Adjusted EBITDA
4,490
to
4,570
(2.9)%
Consolidated AFFO
3,460
to
3,530
(1.2)%
_______________
(1)
Includes U.S. property revenue of $3,960
million to $4,020 million and international property revenue of
$3,245 million to $3,315 million, reflecting midpoint growth rates
of 4.4% and (6.1)%, respectively. The U.S. growth rate includes a
negative impact of over 2% associated with a decrease in non-cash
straight-line revenue recognition. The international growth rate
includes estimated negative impacts of approximately 15%
attributable to ICCC and the non-recurrence of the Tata settlement,
and approximately 3% from the translational effects of foreign
currency exchange rate fluctuations. International property revenue
reflects the Company’s Latin America, EMEA and Asia segments.
2019 Outlook for Total Property
revenue, at the midpoint, includes the following components(1):
($ in millions, totals may not add due to rounding.)
U.S. Property
International
Property(2)
Total Property
International pass-through revenue
N/A
$
1,000
$
1,000
Straight-line revenue
(25
)
40
15
_______________
(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.
2019 Outlook for Total Tenant Billings
Growth, at the midpoint, includes the following components(1):
(Totals may not add due to rounding.)
U.S. Property
International
Property(2)
Total Property
Organic Tenant Billings
≥7%
~(2)%
~4%
New Site Tenant Billings
<0.5%
~5-6%
~2%
Total Tenant Billings Growth
>7%
~3-4%
~6%
_______________
(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.
Reconciliation of Indian Carrier
Consolidation-Driven Churn Impact to 2019 Outlook: ($ in
millions, except per share amounts. Totals may not add due to
rounding.)
FY 2018 Results
2019 Outlook, at the
Midpoint
Midpoint Growth Rates vs.
Prior Year
($ in millions)
As Reported
Impact of Tata Settlement(1)
Impact of ICCC(2)
Normalized
As Reported
Impact of ICCC(2)(3)
Normalized
As Reported
Impact of ICCC and Tata
Settlement(3)(4)
Normalized
Total property revenue(5)
$
7,315
$
(334
)
$
189
$
7,170
$
7,270
$
375
$
7,645
(0.6
)%
7.2
%
6.6
%
Adjusted EBITDA
4,667
(327
)
120
4,459
4,530
261
4,791
(2.9
)%
10.4
%
7.4
%
Consolidated AFFO
3,539
(313
)
96
3,322
3,495
209
3,704
(1.2
)%
12.8
%
11.5
%
Consolidated AFFO per Share(6)
$
7.99
$
(0.71
)
$
0.22
$
7.50
$
7.85
$
0.47
$
8.32
(1.8
)%
12.7
%
10.9
%
Consolidated Organic Tenant Billings
275
—
128
403
216
210
426
~4%
~3-4%
>7%
International Organic Tenant Billings
32
—
128
160
(42
)
210
169
~(2)%
~10%
~8%
_______________
(1)
Includes the one-time net positive impacts
to 2018 property revenue, Adjusted EBITDA and Consolidated AFFO
related to the Company's settlement with Tata. Churn associated
with the settlement is reflected in the ICCC column.
(2)
Reflects the cumulative impacts of ICCC
since 2017.
(3)
Includes the impacts of settlement payments of approximately $9
million related to ICCC in prior periods.
(4)
Reflects the cumulative impacts of ICCC since 2017 and the 2018
impacts of the Tata settlement.
(5)
Expected ICCC impacts include a cumulative decline of approximately
$61 million and $85 million in pass-through revenue for 2018 and
2019, respectively.
(6)
Assumes 2019 weighted average diluted share count of 445 million
shares.
Outlook for Capital Expenditures:
($ in millions, totals may not add due to rounding.)
Full Year 2019
Discretionary capital projects(1)
$
350
to
$
380
Ground lease purchases
150
to
160
Start-up capital projects
70
to
90
Redevelopment
270
to
290
Capital improvement
150
to
170
Corporate
10
—
10
Total
$
1,000
to
$
1,100
_______________
(1)
Includes the construction of 3,000 to
4,000 communications sites globally.
Reconciliation of Outlook for Adjusted
EBITDA to Net income: ($ in millions, totals may not add due to
rounding.)
Full Year 2019
Net income
$
1,590
to
$
1,660
Interest expense
820
to
810
Depreciation, amortization and
accretion
1,760
to
1,800
Income tax provision
135
to
125
Stock-based compensation expense
100
to
110
Other, including other operating expenses,
interest income, gain (loss) on retirement of long-term obligations
and other income (expense)
85
to
65
Adjusted EBITDA
$
4,490
to
$
4,570
Reconciliation of Outlook for
Consolidated AFFO to Net income: ($ in millions, totals may not
add due to rounding.)
Full Year 2019
Net income
$
1,590
to
$
1,660
Straight-line revenue
(15
)
—
(15
)
Straight-line expense
42
—
42
Depreciation, amortization and
accretion
1,760
to
1,800
Stock-based compensation expense
100
to
110
Deferred portion of income tax
3
—
3
Other, including other operating expense,
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 distributions to minority interests
140
to
110
Capital improvement capital
expenditures
(150
)
to
(170
)
Corporate capital expenditures
(10
)
—
(10
)
Consolidated AFFO
$
3,460
to
$
3,530
Conference Call Information American Tower will host a
conference call today at 8:30 a.m. ET to discuss its financial
results for the quarter ended June 30, 2019 and its updated outlook
for 2019. 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) 260-0718
International dial-in: (612) 288-0318 Passcode: 469119
When available, a replay of the call can be accessed until 11:59
p.m. ET on August 14, 2019. The replay dial-in numbers are as
follows:
U.S./Canada dial-in: (800) 475-6701
International dial-in: (320) 365-3844 Passcode: 469119
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 171,000 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, Net Leverage Ratio and Indian Carrier Consolidation-Driven
Churn (ICCC). 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. 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; (vii) Foreign currency exchange
impact; and (viii) 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 sites 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 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 the Company’s existing real estate portfolio growth as
well as its 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 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 its 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 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 rate fluctuations on its reported growth
to provide transparency into the underlying performance of its real
estate business.
Other revenue: Other revenue represents revenue not
captured by the above listed items and can include items such as
tenant settlements and fiber solutions revenue.
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 rate 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.
Indian Carrier Consolidation-Driven Churn (ICCC): Tenant
cancellations specifically attributable to short-term carrier
consolidation in India. Includes impacts of carrier exits from the
marketplace and carrier cancellations as a result of consolidation,
but excludes normal course churn. The Company believes that
providing this additional metric enhances transparency and provides
a better understanding of its recurring business without the impact
of what it believes to be a transitory event.
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, in periods through the third
quarter of 2018, the Latin America property segment Operating
Profit and Gross Margin also include interest income (expense), 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 the 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 the
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 the
Company’s property assets in those periods. In addition, it is a
widely used performance measure across the 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 and the other line items included in the calculation
of Consolidated AFFO. The Company believes that providing this
additional metric enhances transparency, given the minority
interests in its Indian and European businesses.
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 finance
leases and perpetual land easements. 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, although this measure of Free Cash Flow may not be
directly comparable to similar measures used by other
companies.
Net Debt: Total long-term debt, including current portion
and finance lease liabilities, 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 2019 outlook and other targets,
our expectations regarding Indian Carrier Consolidation-Driven
Churn (ICCC) and factors that could affect such expectations,
foreign currency exchange rates, our expectations for the closing
of signed acquisitions, our expectations for the redemption of
shares in ATC TIPL and our expectations regarding the leasing
demand for communications real estate. Actual results may differ
materially from those indicated in our forward-looking statements
as a result of various important factors, including: (1) a
significant decrease in leasing demand for our communications
infrastructure would materially and adversely affect our business
and operating results, and we cannot control that demand; (2)
increasing competition within our industry may materially and
adversely affect our revenue; (3) if our tenants consolidate their
operations, exit the telecommunications business or share site
infrastructure to a significant degree, 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 or impact our competitive landscape; (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) 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; (7) 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; (8) new technologies or changes in our or a
tenant’s business model could make our tower leasing business less
desirable and result in decreasing revenues and operating results;
(9) competition for assets could adversely affect our ability to
achieve our return on investment criteria; (10) 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; (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 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) our towers, fiber
networks, data centers or computer systems may be affected by
natural disasters, security breaches and other unforeseen events
for which our insurance may not provide adequate coverage; (15) our
costs could increase and our revenues could decrease due to
perceived health risks from radio emissions, especially if these
perceived risks are substantiated; (16) we could have liability
under environmental and occupational safety and health laws; (17)
if we are unable to protect our rights to the land under our
towers, it could adversely affect our business and operating
results; and (18) 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 those towers will be eliminated. 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, 2018, 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 millions)
June 30, 2019
December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
1,192.2
$
1,208.7
Restricted cash
93.8
96.2
Accounts receivable, net
459.5
459.0
Prepaid and other current assets
486.9
621.2
Total current assets
2,232.4
2,385.1
PROPERTY AND EQUIPMENT, net
11,268.6
11,247.1
GOODWILL
5,557.8
5,501.9
OTHER INTANGIBLE ASSETS, net
10,895.2
11,174.3
DEFERRED TAX ASSET
147.8
157.7
DEFERRED RENT ASSET
1,597.1
1,581.7
RIGHT-OF-USE ASSET(1)
7,110.0
—
NOTES RECEIVABLE AND OTHER NON-CURRENT
ASSETS
263.8
962.6
TOTAL
$
39,072.7
$
33,010.4
LIABILITIES
CURRENT LIABILITIES:
Accounts payable
$
144.9
$
130.8
Accrued expenses
835.6
948.3
Distributions payable
413.0
377.4
Accrued interest
154.2
174.5
Current portion of operating lease
liability(1)
496.9
—
Current portion of long-term
obligations
2,442.2
2,754.8
Unearned revenue
334.8
304.1
Total current liabilities
4,821.6
4,689.9
LONG-TERM OBLIGATIONS
18,615.9
18,405.1
OPERATING LEASE LIABILITY(1)
6,335.4
—
ASSET RETIREMENT OBLIGATIONS
1,252.3
1,210.0
DEFERRED TAX LIABILITY
546.2
535.9
OTHER NON-CURRENT LIABILITIES
868.0
1,265.1
Total liabilities
32,439.4
26,106.0
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING
INTERESTS
590.2
1,004.8
EQUITY:
Common stock
4.5
4.5
Additional paid-in capital
10,492.7
10,380.8
Distributions in excess of earnings
(1,206.2
)
(1,199.5
)
Accumulated other comprehensive loss
(2,606.7
)
(2,642.9
)
Treasury stock
(1,206.8
)
(1,206.8
)
Total American Tower Corporation
equity
5,477.5
5,336.1
Noncontrolling interests
565.6
563.5
Total equity
6,043.1
5,899.6
TOTAL
$
39,072.7
$
33,010.4
_______________
(1)
Reflects the new lease accounting standard
requiring a right-of-use model.
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS (In millions, except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
REVENUES:
Property
$
1,848.9
$
1,749.4
$
3,634.9
$
3,459.8
Services
40.7
31.5
68.1
62.9
Total operating revenues
1,889.6
1,780.9
3,703.0
3,522.7
OPERATING EXPENSES:
Costs of operations (exclusive of items
shown separately below):
Property(1)
549.4
547.2
1,082.4
1,054.6
Services(1)
13.9
13.1
24.3
25.6
Depreciation, amortization and
accretion
448.9
449.7
885.8
896.0
Selling, general, administrative and
development expense(1)(2)
164.8
157.9
362.9
362.8
Other operating expenses(3)
28.7
67.0
48.8
234.8
Total operating expenses
1,205.7
1,234.9
2,404.2
2,573.8
OPERATING INCOME
683.9
546.0
1,298.8
948.9
OTHER INCOME (EXPENSE):
Interest expense, TV Azteca
—
(3.4
)
—
(0.7
)
Interest income
11.7
18.4
24.1
33.8
Interest expense
(204.5
)
(207.9
)
(412.0
)
(407.5
)
Loss on retirement of long-term
obligations
(22.1
)
—
(22.2
)
—
Other (expense) income (including foreign
currency (losses) gains of $(5.3), $(40.4), $14.8 and $(17.1),
respectively)
(5.1
)
(34.8
)
16.8
(7.0
)
Total other expense
(220.0
)
(227.7
)
(393.3
)
(381.4
)
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES
463.9
318.3
905.5
567.5
Income tax (provision) benefit(4)
(29.6
)
(3.9
)
(63.6
)
27.2
NET INCOME
434.3
314.4
841.9
594.7
Net income attributable to noncontrolling
interests
(5.2
)
(7.7
)
(15.4
)
(2.8
)
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER
CORPORATION STOCKHOLDERS
429.1
306.7
826.5
591.9
Dividends on preferred stock
—
—
—
(9.4
)
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER
CORPORATION COMMON STOCKHOLDERS
$
429.1
$
306.7
$
826.5
$
582.5
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American
Tower Corporation common stockholders
$
0.97
$
0.69
$
1.87
$
1.33
Diluted net income attributable to
American Tower Corporation common stockholders
$
0.96
$
0.69
$
1.86
$
1.32
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
(in thousands):
BASIC
442,203
441,497
441,778
438,328
DILUTED
445,337
444,362
445,040
441,513
_______________
(1)
Property costs of operations, services
costs of operations and selling, general, administrative and
development expense include stock-based compensation expense in
aggregate amounts of $21.9 million and $64.4 million for the three
and six months ended June 30, 2019, respectively, and $24.8 million
and $67.5 million for the three and six months ended June 30, 2018,
respectively.
(2)
Six months ended June 30, 2018 includes
approximately $29 million of bad debt expense, primarily associated
with Aircel’s bankruptcy in India.
(3)
Three and six months ended June 30, 2018
reflect impairment charges of approximately $33 million and $181
million, respectively, primarily related to assets in India,
partially offset by an income tax benefit in India. The portion of
these items attributable to American Tower Corporation common
stockholders for the three and six months ended June 30, 2018 was
approximately $11 million and $70 million, respectively.
(4)
Six months ended June 30, 2018 includes
income tax benefit in India.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In millions)
Six Months Ended June
30,
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
841.9
$
594.7
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation, amortization and
accretion
885.8
896.0
Amortization of operating leases(1)
298.8
—
Stock-based compensation expense
64.4
67.5
Loss on early retirement of long-term
obligations
22.2
—
Other non-cash items reflected in
statements of operations
86.5
206.0
Increase in net deferred rent balances
(11.0
)
(10.7
)
Reduction in operating lease
liability(1)
(259.3
)
—
Increase in assets
(52.4
)
(68.9
)
(Decrease) increase in liabilities
(55.2
)
47.2
Cash provided by operating activities
1,821.7
1,731.8
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for purchase of property and
equipment and construction activities
(464.3
)
(424.9
)
Payments for acquisitions, net of cash
acquired
(134.5
)
(1,336.5
)
Proceeds from sales of short-term
investments and other non-current assets
368.7
894.5
Payments for short-term investments
(355.9
)
(952.8
)
Deposits and other
(4.7
)
(23.3
)
Cash used for investing activities
(590.7
)
(1,843.0
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit facilities
2,620.0
2,663.3
Proceeds from issuance of senior notes,
net
3,529.7
584.9
Proceeds from term loan
1,300.0
1,500.0
Proceeds from issuance of securities in
securitization transaction
—
500.0
Repayments of notes payable, credit
facilities, senior notes, secured debt, term loan, finance leases
and capital leases(2)
(7,413.2
)
(4,257.4
)
Distributions to noncontrolling interest
holders, net
(14.0
)
(13.9
)
Purchases of common stock
—
(98.6
)
Proceeds from stock options and employee
stock purchase plan
56.6
40.2
Payment for early retirement of long-term
obligations
(21.0
)
—
Deferred financing costs and other
financing activities(3)
(104.7
)
(55.1
)
Purchase of redeemable noncontrolling
interest
(425.7
)
—
Purchase of noncontrolling interest
—
(20.5
)
Distributions paid on preferred stock
—
(18.9
)
Distributions paid on common stock
(775.1
)
(635.6
)
Cash (used for) provided by financing
activities
(1,247.4
)
188.4
Net effect of changes in foreign currency
exchange rates on cash and cash equivalents, and restricted
cash
(2.5
)
(62.0
)
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS, AND RESTRICTED CASH
(18.9
)
15.2
CASH AND CASH EQUIVALENTS, AND RESTRICTED
CASH, BEGINNING OF PERIOD
1,304.9
954.9
CASH AND CASH EQUIVALENTS, AND RESTRICTED
CASH, END OF PERIOD
$
1,286.0
$
970.1
CASH PAID FOR INCOME TAXES, NET
$
77.9
$
44.6
CASH PAID FOR INTEREST
$
419.3
$
382.5
_______________
(1)
Reflects the new lease accounting standard
requiring a right-of-use model.
(2)
Six months ended June 30, 2019 includes
$4.5 million of finance lease payments. Six months ended June 30,
2018 includes $16.0 million of payments on capital leases of
property and equipment.
(3)
Six months ended June 30, 2019 includes
$15.0 million of perpetual land easement payments.
UNAUDITED CONSOLIDATED RESULTS FROM
OPERATIONS, BY SEGMENT ($ in millions, totals may not add due
to rounding.)
Three Months Ended June 30,
2019
Property
Services
Total
U.S.
Latin America
Asia(1)
EMEA
Total International
Total Property
Segment revenues
$
1,007
$
346
$
321
$
175
$
842
$
1,849
$
41
$
1,890
Segment operating expenses(2)
197
104
188
61
352
549
14
563
Segment Gross Margin
$
811
$
242
$
133
$
114
$
489
$
1,300
$
27
$
1,327
Segment SG&A(2)
42
24
18
20
62
104
2
106
Segment Operating Profit
$
768
$
218
$
115
$
94
$
428
$
1,196
$
25
$
1,221
Segment Operating Profit Margin
76
%
63
%
36
%
54
%
51
%
65
%
61
%
65
%
Revenue Growth
5.3
%
8.7
%
4.3
%
5.0
%
6.2
%
5.7
%
29.2
%
6.1
%
Total Tenant Billings Growth
7.8
%
8.9
%
(13.7
)%
12.3
%
1.9
%
5.6
%
Organic Tenant Billings Growth
7.5
%
7.3
%
(23.8
)%
7.2
%
(3.6
)%
3.4
%
Revenue Components(3)
Prior-Year Tenant Billings
$
898
$
215
$
184
$
129
$
528
$
1,426
Colocations/Amendments
52
10
18
4
33
85
Escalations
29
11
3
6
20
49
Cancellations
(12
)
(7
)
(66
)
(3
)
(75
)
(87
)
Other
(1
)
1
0
2
4
2
Organic Tenant Billings
$
965
$
231
$
140
$
138
$
510
$
1,475
New Site Tenant Billings
2
3
19
7
29
31
Total Tenant Billings
$
967
$
235
$
159
$
144
$
538
$
1,506
Foreign Currency Exchange Impact(4)
—
(13
)
(6
)
(9
)
(29
)
(29
)
Total Tenant Billings (Current Period)
$
967
$
222
$
153
$
135
$
510
$
1,477
Straight-Line Revenue
(4
)
6
3
1
10
6
Prepaid Amortization Revenue
26
1
—
1
2
29
Other Revenue
18
40
19
3
62
80
International Pass-Through Revenue
—
82
153
37
272
272
Foreign Currency Exchange Impact(5)
—
(5
)
(7
)
(2
)
(14
)
(14
)
Total Property Revenue (Current
Period)
$
1,007
$
346
$
321
$
175
$
842
$
1,849
_______________
(1)
Inclusive of the negative impacts of ICCC.
See quarterly supplemental materials package for additional
detail.
(2)
Excludes stock-based compensation
expense.
(3)
All components of revenue, except those
labeled current period, have been translated at prior-period
foreign currency exchange rates.
(4)
Reflects foreign currency exchange impact
on all components of Total Tenant Billings.
(5)
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 June 30,
2018
Property
Services
Total
U.S.
Latin America
Asia(1)
EMEA
Total International
Total Property
Segment revenues
$
957
$
318
$
308
$
167
$
792
$
1,749
$
32
$
1,781
Segment operating expenses(2)
199
109
180
59
348
547
13
560
Interest expense, TV Azteca, net(3)
—
(3
)
—
—
(3
)
(3
)
—
(3
)
Segment Gross Margin
$
758
$
205
$
128
$
108
$
441
$
1,199
$
19
$
1,218
Segment SG&A(2)
44
19
15
18
52
96
3
99
Segment Operating Profit
$
714
$
186
$
113
$
91
$
389
$
1,104
$
16
$
1,119
Segment Operating Profit Margin
75
%
59
%
37
%
54
%
49
%
63
%
50
%
63
%
Revenue Growth
6.7
%
10.8
%
4.5
%
4.4
%
7.0
%
6.8
%
29.1
%
7.1
%
Total Tenant Billings Growth
8.1
%
16.0
%
6.6
%
8.0
%
10.7
%
9.1
%
Organic Tenant Billings Growth
7.4
%
12.4
%
(10.2
)%
6.8
%
2.9
%
5.7
%
Revenue Components(4)
Prior-Year Tenant Billings
$
830
$
198
$
179
$
119
$
497
$
1,327
Colocations/Amendments
46
14
11
4
29
76
Escalations
26
11
3
6
20
46
Cancellations
(10
)
(2
)
(33
)
(2
)
(37
)
(47
)
Other
(1
)
2
0
(0
)
2
1
Organic Tenant Billings
$
891
$
223
$
161
$
127
$
511
$
1,402
New Site Tenant Billings
6
7
30
1
39
45
Total Tenant Billings
$
898
$
230
$
191
$
129
$
550
$
1,447
Foreign Currency Exchange Impact(5)
—
(15
)
(6
)
(0
)
(21
)
(21
)
Total Tenant Billings (Current Period)
$
898
$
216
$
184
$
129
$
528
$
1,426
Straight-Line Revenue
13
9
4
2
15
28
Prepaid Amortization Revenue
24
1
—
0
1
25
Other Revenue
23
17
(7
)
1
12
35
International Pass-Through Revenue
—
83
130
35
249
249
Foreign Currency Exchange Impact(6)
—
(7
)
(5
)
(1
)
(12
)
(12
)
Total Property Revenue (Current
Period)
$
957
$
318
$
308
$
167
$
792
$
1,749
_______________
(1)
Inclusive of the negative impacts of ICCC.
See quarterly supplemental materials package for additional
detail.
(2)
Excludes stock-based compensation
expense.
(3)
Represents reversal of interest income
recognized in the prior period due to nonpayment. The Company
subsequently signed a new agreement with TV Azteca which
extinguished this note.
(4)
All components of revenue, except those
labeled current period, have been translated at prior-period
foreign currency exchange rates.
(5)
Reflects foreign currency exchange impact
on all components of Total Tenant Billings.
(6)
Reflects foreign currency exchange impact on components of revenue,
other than Total Tenant Billings.
UNAUDITED SELECTED CONSOLIDATED
FINANCIAL INFORMATION
($ in millions, totals may not add due to
rounding.)
The reconciliation of Adjusted EBITDA
to net income and the calculation of Adjusted EBITDA Margin are as
follows:
Three Months Ended June
30,
2019(1)
2018(1)
Net income
$
434.3
$
314.4
Income tax provision
29.6
3.9
Other expense
5.1
34.8
Loss on retirement of long-term
obligations
22.1
—
Interest expense
204.5
207.9
Interest income
(11.7
)
(18.4
)
Other operating expenses
28.7
67.0
Depreciation, amortization and
accretion
448.9
449.7
Stock-based compensation expense
21.9
24.8
Adjusted EBITDA
$
1,183.4
$
1,084.1
Total revenue
1,889.6
1,780.9
Adjusted EBITDA Margin
63
%
61
%
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 as follows:
Three Months Ended June
30,
2019(1)
2018(1)
Net income
$
434.3
$
314.4
Real estate related depreciation,
amortization and accretion
400.7
400.1
Losses from sale or disposal of real
estate and real estate related impairment charges(2)
24.4
56.7
Adjustments for unconsolidated affiliates
and noncontrolling interests
(30.8
)
(60.2
)
Nareit FFO attributable to AMT common
stockholders
$
828.6
$
711.0
Straight-line revenue
(5.7
)
(27.5
)
Straight-line expense
12.0
20.6
Stock-based compensation expense
21.9
24.8
Deferred portion of income tax(3)
(11.4
)
(16.0
)
Non-real estate related depreciation,
amortization and accretion
48.2
49.6
Amortization of deferred financing costs,
capitalized interest and debt discounts and premiums and long-term
deferred interest charges
6.4
6.1
Payment of shareholder loan
interest(4)
(14.2
)
—
Other expense(5)
5.1
34.8
Loss on retirement of long-term
obligations
22.1
—
Other operating expense(6)
4.3
10.3
Capital improvement capital
expenditures
(36.4
)
(27.6
)
Corporate capital expenditures
(2.1
)
(2.3
)
Adjustments for unconsolidated affiliates
and noncontrolling interests
30.8
60.2
Consolidated AFFO
909.6
844.0
Adjustments for unconsolidated affiliates
and noncontrolling interests(7)
(16.5
)
(69.3
)
AFFO attributable to AMT common
stockholders
$
893.1
$
774.7
Divided by weighted average diluted shares
outstanding
445,337
444,362
Consolidated AFFO per Share
$
2.04
$
1.90
AFFO attributable to AMT common
stockholders per Share
$
2.01
$
1.74
_______________
(1)
Reflects the negative impacts of ICCC.
(2)
Q2 2018 includes impairment charge
of approximately $33 million.
(3)
Q2 2018 reflects income tax benefit in India
(4)
In Q2 2019, the Company made a capitalized
interest payment of approximately $14.2 million associated with the
purchase of the shareholder loan previously held by its joint
venture partner in Ghana. This long-term deferred interest was
previously expensed but excluded from Consolidated AFFO.
(5)
Q2 2019 and Q2 2018 include losses on
foreign currency exchange rate fluctuations of $5.3 million and
$40.4 million, respectively.
(6)
Primarily includes integration and acquisition-related
costs.
(7)
Includes adjustments for the impact on both Nareit FFO
attributable to American Tower Corporation common stockholders and
the other line items included in the calculation of Consolidated
AFFO.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190731005358/en/
Igor Khislavsky Vice President, Investor Relations Telephone:
(617) 375-7500
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