CONSOLIDATED HIGHLIGHTS Third Quarter 2019
- Total revenue increased 9.4% to $1,954 million
- Property revenue increased 9.7% to $1,922 million
- Net income increased 33.9% to $505 million
- Adjusted EBITDA increased 12.2% to $1,229 million
- Consolidated AFFO increased 8.5% to $891 million
American Tower Corporation (NYSE: AMT) today reported financial
results for the quarter ended September 30, 2019.
Jim Taiclet, American Tower’s Chief Executive Officer, stated,
“U.S Organic Tenant Billings Growth of 7.1%, coupled with solid
underlying demand trends in our international markets, drove strong
results in the third quarter. Our tenants are making significant
investments in their networks as mobile data usage growth
continues, and in the U.S., we are now seeing the early stages of
5G spending.
We are focused on positioning the Company to benefit from mobile
network technology evolution over the long term through mutually
beneficial master lease agreements, continued selective portfolio
expansion and our innovation program. We are confident that our
strong balance sheet, growing dividend, emphasis on operational
efficiency and comprehensive global footprint position us to
deliver sustainable growth for years to come.”
CONSOLIDATED OPERATING RESULTS OVERVIEW American Tower
generated the following operating results for the quarter ended
September 30, 2019 (all comparative information is presented
against the quarter ended September 30, 2018).
($ in millions, except per share
amounts.)
Q3 2019(1)
Growth Rate
Total
revenue........................................................................................................................................
$
1,954
9.4
%
Total property
revenue........................................................................................................................................
$
1,922
9.7
%
Total Tenant Billings
Growth........................................................................................................................................
$
72
5.0
%
Organic Tenant Billings
Growth........................................................................................................................................
$
53
3.7
%
Property Gross
Margin........................................................................................................................................
$
1,374
13.6
%
Property Gross Margin
%........................................................................................................................................
71.5
%
Net
income........................................................................................................................................
$
505
33.9
%
Net income attributable to AMT common
stockholders........................................................................................................................................
$
499
35.9
%
Net income attributable to AMT common
stockholders per diluted
share........................................................................................................................................
$
1.12
34.9
%
Adjusted
EBITDA........................................................................................................................................
$
1,229
12.2
%
Adjusted EBITDA Margin
%........................................................................................................................................
62.9
%
Nareit Funds From Operations (FFO)
attributable to AMT common
stockholders........................................................................................................................................
$
900
20.3
%
Consolidated
AFFO........................................................................................................................................
$
891
8.5
%
Consolidated AFFO per
Share........................................................................................................................................
$
2.00
8.1
%
AFFO attributable to AMT common
stockholders........................................................................................................................................
$
861
10.4
%
AFFO attributable to AMT common
stockholders per
Share........................................................................................................................................
$
1.93
9.7
%
Cash provided by operating
activities........................................................................................................................................
$
937
24.4
%
Less: total cash capital
expenditures(2)........................................................................................................................................
$
277
44.2
%
Free Cash
Flow........................................................................................................................................
$
660
17.6
%
_______________ (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) Q3 2019
cash capital expenditures include $18.1 million of finance lease
and perpetual land easement payments reported in cash flows from
financing activities in the condensed consolidated statements of
cash flows.
The Company’s operational and financial results during the third
quarter of 2019 were impacted by churn driven by carrier
consolidation in India (Indian Carrier Consolidation-Driven Churn,
“ICCC”). We are disclosing the additional financial metrics below
to provide insight into the underlying long-term trends across the
Company’s business excluding these impacts. We expect ICCC to
impact our operational and financial results in the fourth quarter
of 2019 and to result in an overall reduction in Indian contracted
tenant revenue. The impacts of ICCC on net income are not provided,
as the impact on all components of the net income measure cannot be
reasonably calculated.
Reconciliation of Indian Carrier
Consolidation-Driven Churn Impact to Operating Results: ($ in
millions, except per share amounts. Totals may not add due to
rounding.)
Q3 2019 Results
Q3 2018 Results
Growth Rates vs. Prior
Year
As Reported
Impact of ICCC(1)
Normalized
As Reported
Impact of ICCC(1)
Normalized
As Reported
Impact of ICCC(1)
Normalized
Total property
revenue...................................................
$
1,922
$
91
$
2,013
$
1,752
$
48
$
1,799
9.7
%
2.2
%
11.9
%
Adjusted
EBITDA...................................................
1,229
63
1,292
1,095
27
1,123
12.2
%
2.9
%
15.1
%
Consolidated
AFFO...................................................
891
50
941
821
22
843
8.5
%
3.1
%
11.6
%
Consolidated AFFO per
Share...................................................
$
2.00
$
0.11
$
2.11
$
1.85
$
0.05
$
1.90
8.1
%
2.9
%
11.1
%
Consolidated Organic Tenant
Billings...................................................
53
55
108
72
31
103
3.7
%
3.7
%
7.4
%
International Organic Tenant
Billings...................................................
(12
)
55
43
10
31
41
(2.3
)%
10.1
%
7.8
%
_______________ (1) Reflects the cumulative impacts of ICCC
since 2017.
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 September 30,
2019, the Company declared the following regular cash distributions
to its common stockholders:
Common Stock Distributions
Q3 2019(1)
Distributions per
share.....................................................................................................................................................
$
0.95
Aggregate amount (in
millions).....................................................................................................................................................
$
421
Year-over-year per share
growth.....................................................................................................................................................
20.3
%
_______________ (1) The distribution declared on September 13,
2019 was paid in the fourth quarter of 2019 to stockholders of
record as of the close of business on September 27, 2019.
Capital Expenditures – During the third quarter of 2019,
total capital expenditures were $277 million, of which $47 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 third quarter of 2019, the
Company spent approximately $0.5 billion to acquire 615
communications sites and other related assets, primarily through a
previously disclosed transaction in the U.S. In addition, the
Company spent $43 million to purchase the 243 remaining towers
under its previously disclosed sublease agreement, as amended, with
ALLTEL Communications, LLC, a predecessor entity to Verizon
Wireless.
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 approximately $1.85 billion. The Company
continues to expect the transaction to close by the end of 2019,
subject to customary closing conditions and regulatory approvals.
Subject to the closing of the Eaton Towers transaction, the Company
anticipates acquiring the interests of its joint venture partner,
MTN Group Limited, in each of the joint ventures in Ghana and
Uganda.
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 now expects to complete the redemption of the remaining
put shares in Q4 2019 for total consideration of approximately INR
24.8 billion (approximately $350 million as of September 30, 2019),
subject to regulatory approval. After the completion of the
redemption, the Company will hold an approximately 92% ownership
interest in ATC TIPL.
Additionally, in the third quarter of 2019, the Company signed a
new master lease agreement (“MLA”) with AT&T Inc. in the U.S.
The Company’s third quarter 2019 results and revised full year 2019
outlook include the impacts of the MLA.
LEVERAGE AND FINANCING OVERVIEW
Leverage – For the quarter ended September 30, 2019, the
Company’s Net Leverage Ratio was 4.1x net debt (total debt less
cash and cash equivalents) to third quarter 2019 annualized
Adjusted EBITDA.
Calculation of Net Leverage Ratio
($ in millions, totals may not add due to rounding)
As of September 30,
2019
Total
debt.............................................................................................................................................
$
21,484
Less: Cash and cash
equivalents.............................................................................................................................................
1,353
Net
Debt.............................................................................................................................................
20,131
Divided By: Third quarter annualized
Adjusted
EBITDA(1).............................................................................................................................................
4,917
Net Leverage
Ratio.............................................................................................................................................
4.1x
_______________ (1) Q3 2019 Adjusted EBITDA multiplied by
four.
Liquidity – As of September 30, 2019, the Company had
$5.2 billion of total liquidity, consisting of $1.4 billion in cash
and cash equivalents plus the ability to borrow an aggregate of
$3.8 billion under its revolving credit facilities, net of any
outstanding letters of credit.
On October 3, 2019, the Company issued $750.0 million aggregate
principal amount of 2.750% senior unsecured notes due 2027 and
$600.0 million aggregate principal amount of 3.700% senior
unsecured notes due 2049. The Company used the net proceeds to
repay existing indebtedness under its 2013 credit facility and its
2019 term loan.
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 October 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 October 31, 2019
through December 31, 2019: (a) 64.20 Argentinean Pesos; (b) 4.15
Brazilian Reais; (c) 720 Chilean Pesos; (d) 3,440 Colombian Pesos;
(e) 0.91 Euros; (f) 5.45 Ghanaian Cedi; (g) 71.50 Indian Rupees;
(h) 104 Kenyan Shillings; (i) 19.70 Mexican Pesos; (j) 360 Nigerian
Naira; (k) 6,400 Paraguayan Guarani; (l) 3.35 Peruvian Soles; (m)
15.05 South African Rand; and (n) 3,690 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 $180 million, $145 million, $180 million and
$5 million, respectively, as compared to the Company’s outlook
issued on July 31, 2019. The increases in property revenue, net
income and Adjusted EBITDA include approximately $167 million in
additional straight-line revenue as a result of the Company’s new
MLA with AT&T.
The Company’s outlook reflects estimated unfavorable impacts of
foreign currency exchange rate fluctuations to property revenue,
Adjusted EBITDA and Consolidated AFFO, of approximately $32
million, $16 million and $13 million, respectively, as compared to
the Company’s outlook issued on July 31, 2019. 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
$367 million, $254 million and $203 million, respectively,
inclusive of an expected reduction in pass-through revenue of
approximately $84 million and the benefit of approximately $27
million in ICCC-related settlement payments in 2019. The expected
2019-specific impacts of ICCC to property revenue, Adjusted EBITDA
and Consolidated AFFO are $178 million, $134 million and $107
million, respectively, including $23 million in lower pass-through
revenue and the benefit of ICCC-related settlement payments. At
this time, the Company expects the impacts of ICCC to last
throughout the remainder of 2019. The Company is providing key
outlook measures adjusted to quantify the impacts of ICCC on such
measures and the impact of ICCC and the Company’s settlement with
Tata Teleservices and related entities (“Tata”) in the fourth
quarter of 2018 on growth rates as it believes that these adjusted
measures better reflect the long-term trajectory of its recurring
business and provide investors with a more comprehensive analysis
of the Company’s operations. The impacts of ICCC and the Tata
settlement on net income are not provided, as the impact on all
components of the net income measure cannot be calculated without
unreasonable effort.
Additional information pertaining to the impact of foreign
currency, London Interbank Offered Rate (“LIBOR”) fluctuations and
ICCC on the Company’s outlook has been provided in the supplemental
disclosure package available on the Company’s website.
2019 Outlook ($ in millions)
Full Year 2019
Midpoint Growth Rates vs.
Prior Year
Total property
revenue(1)...............................................................................................................
$
7,420
to
$
7,480
1.8%
Net
income...............................................................................................................
1,750
to
1,790
39.9%
Adjusted
EBITDA...............................................................................................................
4,690
to
4,730
0.9%
Consolidated
AFFO...............................................................................................................
3,480
to
3,520
(1.1)%
_______________ (1) Includes U.S. property revenue of $4,170
million to $4,190 million and international property revenue of
$3,250 million to $3,290 million, reflecting midpoint growth rates
of 9.4% and (6.4)%, respectively. The U.S. growth rate includes a
positive impact of approximately 2% associated with an increase in
non-cash straight-line revenue recognition. The international
growth rate includes estimated negative impacts of approximately
15% attributable to ICCC and the non-recurrence of the Tata
settlement, and approximately 4% from the translational effects of
foreign currency exchange rate fluctuations. International property
revenue reflects the Company’s Latin America, EMEA and Asia
segments.
2019 Outlook for Total Property
revenue, at the midpoint, includes the following components(1):
($ in millions, totals may not add due to rounding.)
U.S. Property
International
Property(2)
Total Property
International pass-through
revenue.................................................................................................................................
N/A
$
995
$
995
Straight-line
revenue.................................................................................................................................
142
40
182
_______________ (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%
~(1-2)%
~4%
New Site Tenant
Billings..................................................................................................................................
~0.5%
~5-6%
>2%
Total Tenant Billings
Growth..................................................................................................................................
~7.5-8%
~3-4%
>6%
_______________ (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.
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
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
$
7,450
$
367
$
7,817
1.8
%
7.2
%
9.0
%
Adjusted
EBITDA...............................
4,667
(327
)
120
4,459
4,710
254
4,964
0.9
%
10.4
%
11.3
%
Consolidated
AFFO...............................
3,539
(313
)
96
3,322
3,500
203
3,703
(1.1
)%
12.6
%
11.5
%
Consolidated AFFO per
Share(6)...............................
$
7.99
$
(0.71
)
$
0.22
$
7.50
$
7.87
$
0.45
$
8.32
(1.5
)%
12.4
%
10.9
%
Consolidated Organic Tenant
Billings...............................
275
—
128
403
223
210
433
~4
%
~3-4
%
>7
%
International Organic Tenant
Billings...............................
32
—
128
160
(37
)
210
172
~(1-2
)%
~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 impact
of approximately $27 million in ICCC-related settlement payments.
(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 $84 million in
pass-through revenue for 2018 and 2019, respectively. (6) Assumes
2019 weighted average diluted share count of 445 million
shares.
Outlook for Capital Expenditures:
($ in millions, totals may not add due to rounding.)
Full Year 2019
Discretionary capital
projects(1)..............................................................................................................................................................
$
385
to
$
415
Ground lease
purchases..............................................................................................................................................................
165
to
175
Start-up capital
projects..............................................................................................................................................................
70
to
90
Redevelopment..............................................................................................................................................................
270
to
290
Capital
improvement..............................................................................................................................................................
150
to
170
Corporate..............................................................................................................................................................
10
—
10
Total......................................................................................................................................................
$
1,050
to
$
1,150
_______________ (1) Includes the construction of 4,000 to 4,500
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............................................................................................................................................................
$
1,750
to
$
1,790
Interest
expense............................................................................................................................................................
825
to
815
Depreciation, amortization and
accretion............................................................................................................................................................
1,775
to
1,785
Income tax
provision............................................................................................................................................................
140
to
135
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)........................................................................................................................................................
100
to
95
Adjusted
EBITDA....................................................................................................................................................
$
4,690
to
$
4,730
Reconciliation of Outlook for
Consolidated AFFO to Net income: ($ in millions, totals may not
add due to rounding.)
Full Year 2019
Net
income............................................................................................................................................................
$
1,750
to
$
1,790
Straight-line
revenue............................................................................................................................................................
(182
)
—
(182
)
Straight-line
expense............................................................................................................................................................
47
—
47
Depreciation, amortization and
accretion............................................................................................................................................................
1,775
to
1,785
Stock-based compensation
expense............................................................................................................................................................
100
to
110
Deferred portion of income
tax............................................................................................................................................................
4
to
8
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........................................................................................................................................................
146
to
143
Capital improvement capital
expenditures............................................................................................................................................................
(150
)
to
(170
)
Corporate capital
expenditures............................................................................................................................................................
(10
)
—
(10
)
Consolidated
AFFO............................................................................................................................................................
$
3,480
to
$
3,520
Conference Call Information American Tower will host a
conference call today at 8:30 a.m. ET to discuss its financial
results for the quarter ended September 30, 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: (866) 254-5937
International dial-in: (651) 291-1246 Passcode: 472805
When available, a replay of the call can be accessed until 11:59
p.m. ET on November 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: 472805
American Tower will also sponsor a live simulcast and replay of
the call on its website, www.americantower.com.
About American Tower American Tower, one of the largest
global REITs, is a leading independent owner, operator and
developer of multitenant communications real estate with a
portfolio of over 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, our expectations for the acquisition of MTN
Group Limited’s interests 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)
September 30, 2019
December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents...............................................................................................................................
$
1,352.6
$
1,208.7
Restricted
cash...............................................................................................................................
95.7
96.2
Accounts receivable,
net...............................................................................................................................
441.7
459.0
Prepaid and other current
assets...............................................................................................................................
472.0
621.2
Total current
assets.......................................................................................................................
2,362.0
2,385.1
PROPERTY AND EQUIPMENT,
net.......................................................................................................................................
11,283.2
11,247.1
GOODWILL.......................................................................................................................................
5,481.4
5,501.9
OTHER INTANGIBLE ASSETS,
net.......................................................................................................................................
10,895.8
11,174.3
DEFERRED TAX
ASSET.......................................................................................................................................
143.5
157.7
DEFERRED RENT
ASSET.......................................................................................................................................
1,677.7
1,581.7
RIGHT-OF-USE
ASSET(1).......................................................................................................................................
7,214.7
—
NOTES RECEIVABLE AND OTHER NON-CURRENT
ASSETS.......................................................................................................................................
248.9
962.6
TOTAL.......................................................................................................................................
$
39,307.2
$
33,010.4
LIABILITIES
CURRENT LIABILITIES:
Accounts
payable...............................................................................................................................
$
136.2
$
130.8
Accrued
expenses...............................................................................................................................
856.7
948.3
Distributions
payable...............................................................................................................................
427.5
377.4
Accrued
interest...............................................................................................................................
145.4
174.5
Current portion of operating lease
liability(1)...............................................................................................................................
475.1
—
Current portion of long-term
obligations...............................................................................................................................
2,443.6
2,754.8
Unearned
revenue...............................................................................................................................
302.9
304.1
Total current
liabilities.......................................................................................................................
4,787.4
4,689.9
LONG-TERM
OBLIGATIONS.......................................................................................................................................
19,040.0
18,405.1
OPERATING LEASE
LIABILITY(1).......................................................................................................................................
6,448.0
—
ASSET RETIREMENT
OBLIGATIONS.......................................................................................................................................
1,252.5
1,210.0
DEFERRED TAX
LIABILITY.......................................................................................................................................
538.5
535.9
OTHER NON-CURRENT
LIABILITIES.......................................................................................................................................
870.9
1,265.1
Total
liabilities.......................................................................................................................
32,937.3
26,106.0
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING
INTERESTS
574.8
1,004.8
EQUITY:
Common
stock...............................................................................................................................
4.5
4.5
Additional paid-in
capital...............................................................................................................................
10,551.8
10,380.8
Distributions in excess of
earnings...............................................................................................................................
(1,130.1
)
(1,199.5
)
Accumulated other comprehensive
loss...............................................................................................................................
(2,979.0
)
(2,642.9
)
Treasury
stock...............................................................................................................................
(1,206.8
)
(1,206.8
)
Total American Tower Corporation
equity.......................................................................................................................
5,240.4
5,336.1
Noncontrolling
interests...............................................................................................................................
554.7
563.5
Total
equity.......................................................................................................................
5,795.1
5,899.6
TOTAL.......................................................................................................................................
$
39,307.2
$
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 September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
REVENUES:
Property....................................................................................................................
$
1,921.6
$
1,751.6
$
5,556.5
$
5,211.4
Services....................................................................................................................
32.0
33.9
100.1
96.8
Total operating
revenues............................................................................................................
1,953.6
1,785.5
5,656.6
5,308.2
OPERATING EXPENSES:
Costs of operations (exclusive of items
shown separately below):
Property(1)........................................................................................................
548.0
543.1
1,630.4
1,597.7
Services(1)........................................................................................................
11.9
13.6
36.2
39.2
Depreciation, amortization and
accretion....................................................................................................................
442.8
448.9
1,328.6
1,344.9
Selling, general, administrative and
development
expense(1)(2)................................................................................................................
187.9
177.9
550.8
540.7
Other operating
expenses(3)....................................................................................................................
34.7
34.8
83.5
269.6
Total operating
expenses............................................................................................................
1,225.3
1,218.3
3,629.5
3,792.1
OPERATING
INCOME...................................................................................
728.3
567.2
2,027.1
1,516.1
OTHER INCOME (EXPENSE):
Interest income (expense), TV
Azteca....................................................................................................................
—
0.6
—
(0.1
)
Interest
income....................................................................................................................
12.2
10.1
36.3
43.9
Interest
expense....................................................................................................................
(201.3
)
(209.2
)
(613.3
)
(616.7
)
Loss on retirement of long-term
obligations....................................................................................................................
—
—
(22.2
)
—
Other income (including foreign currency
(losses) gains of ($1.1), $2.2, $13.7 and ($14.9),
respectively)................................................................................................................
2.8
21.1
19.6
14.1
Total other
expense............................................................................................................
(186.3
)
(177.4
)
(579.6
)
(558.8
)
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES......
542.0
389.8
1,447.5
957.3
Income tax (provision)
benefit(4)....................................................................................................................
(36.7
)
(12.5
)
(100.3
)
14.7
NET
INCOME................................................................................................
505.3
377.3
1,347.2
972.0
Net income attributable to noncontrolling
interests....................................................................................................................
(6.7
)
(10.4
)
(22.1
)
(13.2
)
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER
CORPORATION
STOCKHOLDERS..........................................................................................
498.6
366.9
1,325.1
958.8
Dividends on preferred
stock.............................................................................
—
—
—
(9.4
)
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER
CORPORATION COMMON
STOCKHOLDERS.........................................................................
$
498.6
$
366.9
$
1,325.1
$
949.4
NET INCOME PER COMMON SHARE
AMOUNTS:........................................
Basic net income attributable to American
Tower Corporation common
stockholders....................................................................................................................
$
1.13
$
0.83
$
3.00
$
2.16
Diluted net income attributable to
American Tower Corporation common
stockholders....................................................................................................................
$
1.12
$
0.83
$
2.98
$
2.15
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
(in thousands):
BASIC......................................................................................................
442,763
440,889
442,110
439,191
DILUTED.................................................................................................
445,829
444,121
445,352
442,468
_______________ (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 $23.5 million and $87.9 million for the three and nine
months ended September 30, 2019, respectively, and $43.8 million
and $111.3 million for the three and nine months ended September
30, 2018, respectively. (2) Nine months ended September 30, 2018
includes approximately $33 million of bad debt expense, primarily
associated with Aircel’s bankruptcy in India. (3) Nine months ended
September 30, 2018 reflect impairment charges of approximately $182
million, 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 nine months ended September 30, 2018 was approximately $71
million. (4) Nine months ended September 30, 2018 includes income
tax benefit in India.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In millions)
Nine Months Ended September
30,
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net
income..........................................................................................................................
$
1,347.2
$
972.0
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation, amortization and
accretion..................................................................................................................
1,328.6
1,344.9
Amortization of operating
leases(1)..................................................................................................................
440.1
—
Stock-based compensation
expense..................................................................................................................
87.9
111.3
Loss on early retirement of long-term
obligations..................................................................................................................
22.2
—
Other non-cash items reflected in
statements of
operations..................................................................................................................
163.8
194.5
Increase in net deferred rent
balances..................................................................................................................
(99.6
)
(23.9
)
Reduction in operating lease
liability(1)..................................................................................................................
(388.9
)
—
Increase in
assets..................................................................................................................
(84.5
)
(143.6
)
(Decrease) increase in
liabilities..................................................................................................................
(57.9
)
29.9
Cash provided by operating
activities..................................................................................................................................
2,758.9
2,485.1
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for purchase of property and
equipment and construction
activities..........................................................................................................................
(724.6
)
(610.4
)
Payments for acquisitions, net of cash
acquired..........................................................................................................................
(687.6
)
(1,437.8
)
Proceeds from sales of short-term
investments and other non-current
assets..........................................................................................................................
378.4
1,097.0
Payments for short-term
investments..........................................................................................................................
(355.9
)
(1,072.2
)
Deposits and
other..........................................................................................................................
(11.1
)
(31.7
)
Cash used for investing
activities..................................................................................................................................
(1,400.8
)
(2,055.1
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit
facilities..........................................................................................................................
3,330.0
2,913.3
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)..........................................................................................................................
(7,672.4
)
(4,329.2
)
Distributions to noncontrolling interest
holders,
net..........................................................................................................................
(11.6
)
(14.3
)
Purchases of common
stock..........................................................................................................................
—
(181.2
)
Proceeds from stock options and employee
stock purchase
plan..........................................................................................................................
92.7
54.1
Payment for early retirement of long-term
obligations..........................................................................................................................
(21.0
)
—
Deferred financing costs and other
financing
activities(3)..........................................................................................................................
(114.1
)
(47.4
)
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..........................................................................................................................
(1,182.2
)
(975.1
)
Cash used for financing
activities..................................................................................................................................
(1,174.6
)
(34.3
)
Net effect of changes in foreign currency
exchange rates on cash and cash equivalents, and restricted
cash..................................................................................................................................
(40.1
)
(57.3
)
NET INCREASE IN CASH AND CASH EQUIVALENTS,
AND RESTRICTED
CASH..................................................................................................................................
143.4
338.4
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..................................................................................................................................
$
1,448.3
$
1,293.3
CASH PAID FOR INCOME TAXES,
NET..................................................................................................................................
$
111.0
$
75.3
CASH PAID FOR
INTEREST..................................................................................................................................
$
621.5
$
640.8
_______________ (1) Reflects the new lease accounting standard
requiring a right-of-use model. (2) Nine months ended September 30,
2019 includes $16.4 million of finance lease payments. Nine months
ended September 30, 2018 includes $22.4 million of payments on
capital leases of property and equipment. (3) Nine months ended
September 30, 2019 includes $21.2 million of perpetual land
easement payments.
UNAUDITED CONSOLIDATED RESULTS FROM
OPERATIONS, BY SEGMENT ($ in millions, totals may not add due
to rounding.)
Three Months Ended September
30, 2019
Property
Services
Total
U.S.
Latin America
Asia(1)
EMEA
Total International
Total Property
Segment
revenues.................................................................
$
1,096
$
332
$
313
$
182
$
826
$
1,922
$
32
$
1,954
Segment operating
expenses(2).................................................................
208
104
178
59
340
548
12
559
Segment Gross
Margin.................................................................
$
888
$
228
$
135
$
123
$
486
$
1,374
$
20
$
1,394
Segment
SG&A(2).............................................................
45
24
33
20
76
121
3
124
Segment Operating
Profit.................................................................
$
844
$
205
$
102
$
103
$
409
$
1,253
$
17
$
1,270
Segment Operating Profit
Margin.................................................................
77
%
62
%
32
%
57
%
50
%
65
%
53
%
65
%
Revenue
Growth.............................................................
14.4
%
9.0
%
(3.3
)%
8.9
%
4.0
%
9.7
%
(5.6
)%
9.4
%
Total Tenant Billings
Growth.............................................................
7.6
%
9.3
%
(17.6
)%
13.4
%
0.6
%
5.0
%
Organic Tenant Billings
Growth.............................................................
7.1
%
7.5
%
(20.1
)%
8.0
%
(2.3
)%
3.7
%
Revenue Components(3)
Prior-Year Tenant
Billings.................................................................
$
907
$
211
$
190
$
126
$
526
$
1,433
Colocations/Amendments.................................................................
52
11
19
4
35
87
Escalations.................................................................
29
11
3
6
20
49
Cancellations.................................................................
(14
)
(7
)
(61
)
(2
)
(70
)
(85
)
Other.................................................................
(2
)
1
1
2
4
2
Organic Tenant
Billings.................................................................
$
971
$
226
$
152
$
136
$
514
$
1,486
New Site Tenant
Billings.................................................................
4
4
5
7
15
20
Total Tenant
Billings.................................................................
$
976
$
230
$
156
$
143
$
529
$
1,505
Foreign Currency Exchange
Impact(4).................................................................
—
(6
)
(1
)
(6
)
(13
)
(13
)
Total Tenant Billings (Current
Period).................................................................
$
976
$
224
$
155
$
137
$
516
$
1,492
Straight-Line
Revenue.................................................................
80
4
4
1
9
89
Prepaid Amortization
Revenue.................................................................
25
1
—
1
2
27
Other
Revenue.................................................................
15
26
17
3
47
61
International Pass-Through
Revenue.................................................................
—
78
139
40
257
257
Foreign Currency Exchange
Impact(5).................................................................
—
(2
)
(1
)
(2
)
(5
)
(5
)
Total Property Revenue (Current
Period).................................................................
$
1,096
$
332
$
313
$
182
$
826
$
1,922
_______________ (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 September
30, 2018
Property
Services
Total
U.S.
Latin America
Asia(1)
EMEA
Total International
Total Property
Segment
revenues.................................................................
$
958
$
304
$
323
$
167
$
794
$
1,752
$
34
$
1,786
Segment operating
expenses(2).................................................................
193
97
195
58
349
542
13
556
Interest expense, TV Azteca,
net.............................................................
—
1
—
—
1
1
—
1
Segment Gross
Margin.................................................................
$
764
$
208
$
128
$
109
$
446
$
1,210
$
21
$
1,230
Segment
SG&A(2).............................................................
38
21
14
16
50
88
6
95
Segment Operating
Profit.................................................................
$
727
$
187
$
115
$
93
$
395
$
1,122
$
14
$
1,136
Segment Operating Profit
Margin.............................................................
76
%
62
%
36
%
56
%
50
%
64
%
42
%
64
%
Revenue
Growth.................................................................
5.9
%
2.0
%
8.6
%
7.1
%
5.7
%
5.8
%
34.0
%
6.2
%
Total Tenant Billings
Growth.............................................................
8.0
%
14.5
%
13.2
%
7.8
%
12.5
%
9.7
%
Organic Tenant Billings
Growth.............................................................
7.4
%
11.3
%
(12.0
)%
6.7
%
2.0
%
5.3
%
Revenue Components(3)
Prior-Year Tenant
Billings.................................................................
$
839
$
209
$
182
$
120
$
511
$
1,351
Colocations/Amendments.................................................................
50
12
12
4
28
78
Escalations.................................................................
26
12
4
6
22
48
Cancellations.................................................................
(12
)
(3
)
(38
)
(3
)
(43
)
(56
)
Other.................................................................
(1
)
3
0
0
3
2
Organic Tenant
Billings.................................................................
$
901
$
233
$
160
$
128
$
521
$
1,423
New Site Tenant
Billings.................................................................
6
7
46
1
54
60
Total Tenant
Billings.................................................................
$
907
$
240
$
206
$
129
$
575
$
1,482
Foreign Currency Exchange
Impact(4).................................................................
—
(29
)
(16
)
(3
)
(49
)
(49
)
Total Tenant Billings (Current
Period).................................................................
$
907
$
211
$
190
$
126
$
526
$
1,433
Straight-Line
Revenue.................................................................
16
2
6
1
9
25
Prepaid Amortization
Revenue.................................................................
29
0
—
1
1
30
Other
Revenue.................................................................
6
22
(9
)
6
19
25
International Pass-Through
Revenue.................................................................
—
84
148
36
268
268
Foreign Currency Exchange
Impact(5).................................................................
—
(15
)
(11
)
(3
)
(29
)
(29
)
Total Property Revenue (Current
Period).................................................................
$
958
$
304
$
323
$
167
$
794
$
1,752
_______________ (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 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 September
30,
2019(1)
2018(1)
Net
income..................................................................................................................................
$
505.3
$
377.3
Income tax
provision..........................................................................................................................
36.7
12.5
Other
income..........................................................................................................................
(2.8
)
(21.1
)
Interest
expense..........................................................................................................................
201.3
209.2
Interest
income..........................................................................................................................
(12.2
)
(10.1
)
Other operating
expenses..........................................................................................................................
34.7
34.8
Depreciation, amortization and
accretion..........................................................................................................................
442.8
448.9
Stock-based compensation
expense..........................................................................................................................
23.5
43.8
Adjusted
EBITDA..................................................................................................................................
$
1,229.3
$
1,095.3
Total
revenue..................................................................................................................................
1,953.6
1,785.5
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 September
30,
2019(1)
2018(1)
Net
income..................................................................................................................................
$
505.3
$
377.3
Real estate related depreciation,
amortization and
accretion..........................................................................................................................
394.0
399.7
Losses from sale or disposal of real
estate and real estate related impairment
charges......................................................................................................................
32.2
22.5
Adjustments for unconsolidated affiliates
and noncontrolling
interests......................................................................................................................
(31.5
)
(51.1
)
Nareit FFO attributable to AMT common
stockholders..................................................................................................................................
$
900.0
$
748.4
Straight-line
revenue..........................................................................................................................
(88.6
)
(25.4
)
Straight-line
expense..........................................................................................................................
11.7
12.1
Stock-based compensation
expense..........................................................................................................................
23.5
43.8
Deferred portion of income
tax..........................................................................................................................
3.6
(18.2
)
Non-real estate related depreciation,
amortization and
accretion......................................................................................................................
48.8
49.2
Amortization of deferred financing costs,
capitalized interest and debt discounts and premiums and long-term
deferred interest
charges......................................................................................................................
7.8
3.6
Other
income(2)..........................................................................................................................
(2.8
)
(21.1
)
Other operating
expense(3)..........................................................................................................................
2.5
12.3
Capital improvement capital
expenditures..........................................................................................................................
(44.6
)
(32.0
)
Corporate capital
expenditures..........................................................................................................................
(2.1
)
(2.4
)
Adjustments for unconsolidated affiliates
and noncontrolling
interests..........................................................................................................................
31.5
51.1
Consolidated
AFFO..................................................................................................................................
891.3
821.4
Adjustments for unconsolidated affiliates
and noncontrolling
interests(4)..........................................................................................................................
(30.3
)
(41.8
)
AFFO attributable to AMT common
stockholders..................................................................................................................................
$
861.0
$
779.6
Divided by weighted average diluted shares
outstanding..........................................................................................................................
445,829
444,121
Consolidated AFFO per
Share..................................................................................................................................
$
2.00
$
1.85
AFFO attributable to AMT common
stockholders per
Share..................................................................................................................................
$
1.93
$
1.76
_______________ (1) Reflects the negative impacts of ICCC. (2)
Q3 2019 and Q3 2018 include losses (gains) on foreign currency
exchange rate fluctuations of $1.1 million and ($2.2) million,
respectively. (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 and the other line items included in the
calculation of Consolidated AFFO.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191031005269/en/
Igor Khislavsky Vice President, Investor Relations (617)
375-7500
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