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American Tower Corporation Reports Second Quarter And First Half 2012 Financial Results

Distributions – On July 18, 2012, the Company paid its second regular distribution to stockholders of record at the close of business on July 2, 2012 of $0.22 per share, or an aggregate of approximately $86.9 million.

During the first half of 2012, the Company declared an aggregate distribution of $0.43 per share, or approximately $169.8 million payable to its stockholders of record. Subject to the discretion of the Company’s Board of Directors, the Company expects to continue paying regular distributions, the amount and timing of which will be determined by the Board.

Leverage – For the quarter ended June 30, 2012, the Company’s net leverage ratio was approximately 3.7x net debt (total debt less cash and cash equivalents) to second quarter 2012 annualized Adjusted EBITDA.

Liquidity – As of June 30, 2012, the Company had approximately $2.5 billion of total liquidity, comprised of approximately $481.9 million in cash and cash equivalents, plus the ability to borrow an aggregate of approximately $2.0 billion under its two revolving credit facilities, net of any outstanding letters of credit.

FULL YEAR 2012 OUTLOOK

The following estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of August 1, 2012. Actual results may differ materially from these estimates as a result of various factors and the Company refers you to the cautionary language regarding “forward-looking” statements included in this press release when considering this information.

The Company’s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for the remainder of 2012: (a) 2.00 Brazilian Reais; (b) 500.00 Chilean Pesos; (c) 1,800.00 Colombian Pesos; (d) 1.90 Ghanaian Cedi; (e) 55.00 Indian Rupees; (f) 13.50 Mexican Pesos; (g) 2.70 Peruvian Soles; (h) 8.20 South African Rand; and (i) 2,500.00 Ugandan Schillings.

($ in millions)

(Totals may not add due to rounding.)

  Full Year 2012  

Midpoint

Growth

 

Midpoint

Core Growth

Total rental and management revenue $2,745   to   $2,795 16.1% 20.4%
Adjusted EBITDA (1) 1,810 to 1,850 14.7% 18.8%
Adjusted Funds From Operations (1) 1,185 to 1,207 13.3% 17.0%
Net Income 535 to 555 42.7% N/A
__________________________
(1) See Non-GAAP and Defined Financial Measures below.

The Company’s outlook for total rental and management revenue reflects the following at the midpoint: (1) domestic rental and management segment revenue of $1,910 million; and (2) international rental and management segment revenue of $860 million, which includes approximately $220 million of pass-through revenue.

The calculation of midpoint Core Growth is as follows:

(Totals may not add due to rounding.)

 

Total Rental and

Management

Revenue

 

Adjusted

EBITDA

  AFFO (1)
Outlook midpoint Core Growth 20.4% 18.8% 17.0%
Estimated impact of fluctuations in foreign currency exchange rates (3.9)% (3.2)% (3.5)%
Impact of straight-line revenue and expense recognition (0.9)% (1.3)% -
Impact of significant one-time items 0.5% 0.4% (0.1)%
Outlook midpoint growth 16.1% 14.7% 13.3%
 
(1) Core Growth in AFFO reflects approximately $20 million of one-time start-up capital improvement capital expenditures related to our joint ventures in Colombia, Ghana and Uganda, which is partially offset by approximately $12.4 million, attributable to a tax refund, received in the first quarter of 2012.
 

Outlook for Capital Expenditures:

($ in millions)

(Totals may not add due to rounding.)

Full Year 2012
Capital improvement $75   to   $85
Corporate 15 - 15
Redevelopment 75 to 85
Ground lease purchases 70 to 80
Discretionary capital projects (1) 265 to 335
Total $500 to $600
__________________________
(1) Includes the construction of approximately 1,800 to 2,200 new communications sites.

Reconciliations of Outlook for Net Income to Adjusted EBITDA:

($ in millions)

(Totals may not add due to rounding.)

  Full Year 2012
Net income $535   to   $555
Interest expense 395 to 400
Depreciation, amortization and accretion 660 to 670
Stock-based compensation expense 53 to 55

Other, including other operating expenses, interest income, loss on

retirement of long-term obligations, (income) loss on equity method

investments, other (income) expense and income tax provision

(benefit)

167 to 170
Adjusted EBITDA $1,810 to $1,850

 

 

Reconciliations of Outlook for Net Income to Adjusted Funds From Operations:

($ in millions)

(Totals may not add due to rounding.)

Full Year 2012
Net income $535 to $555
Straight-line revenue (148) - (148)
Straight-line expense 36 - 36
Depreciation, amortization and accretion 660 to 670
Stock-based compensation expense 53 to 55
Non-cash portion of tax provision 28 - 28

Other, including other operating expenses, interest expense, amortization

of deferred financing costs, debt discounts and capitalized interest, loss

on retirement of long-term obligations and other (income) expense

 

111

 

-

 

111

Capital improvement capital expenditures (75) to (85)
Corporate capital expenditures (15) - (15)
Adjusted Funds From Operations $1,185 to $1,207
 

Conference Call Information

American Tower will host a conference call today at 8:30 a.m. ET to discuss its financial results for the second quarter ended June 30, 2012 and its outlook for the full year 2012. Supplemental materials for the call will be available on the Company’s website, www.americantower.com. The conference call dial-in numbers are as follows:

U.S./Canada dial-in: (866) 740-9153

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