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TheStreet Open House

American Tower Corporation Reports Third Quarter And Year To Date 2012 Financial Results

The Company currently expects to close on up to 700 communications sites globally during the fourth quarter of 2012.

Stock Repurchase Program – During the third quarter of 2012, the Company repurchased a total of approximately 0.1 million shares of its common stock for approximately $5.9 million pursuant to its stock repurchase program. Between October 1, 2012 and October 18, 2012, the Company repurchased a total of 16,689 additional shares of its common stock for approximately $1.2 million.

During the nine months ended September 30, 2012, the Company repurchased a total of approximately 0.3 million shares of its common stock for approximately $16.7 million pursuant to its stock repurchase program.

FINANCING OVERVIEW

LeverageFor the quarter ended September 30, 2012, the Company’s net leverage ratio was approximately 3.8x net debt (total debt less cash and cash equivalents) to third quarter 2012 annualized Adjusted EBITDA.

Liquidity As of September 30, 2012, the Company had approximately $2.4 billion of total liquidity, comprised of approximately $382.3 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 October 31, 2012. These estimates include the Company’s new contract renegotiation and extension with one if its major U.S. customers. 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 fourth quarter of 2012: (a) 2.00 Brazilian Reais; (b) 480.00 Chilean Pesos; (c) 1,800.00 Colombian Pesos; (d) 1.90 Ghanaian Cedi; (e) 53.50 Indian Rupees; (f) 12.80 Mexican Pesos; (g) 2.60 Peruvian Soles; (h) 8.50 South African Rand; and (i) 2,550.00 Ugandan Schillings.

($ in millions)     Midpoint   Midpoint Core

(Totals may not add due to rounding.)

Full Year 2012 Growth Growth
Total rental and management revenue $ 2,775   to   $ 2,805 16.9 % 20.3 %
Adjusted EBITDA (1) $ 1,850 to $ 1,880 16.9 % 19.7 %
Adjusted Funds From Operations (1) $ 1,185 to $ 1,207 13.3 % 17.5 %
Net Income $ 625 to $ 660 68.3 % 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 $1,935 million; and (2) international rental and management segment revenue of $855 million, which includes approximately $200 million of pass-through revenue.

 

Total Rental and

   
The calculation of midpoint Core Growth is as follows:

Management

Adjusted

(Totals may not add due to rounding.)

Revenue EBITDA

AFFO (1)

Outlook midpoint Core Growth 20.3% 19.7% 17.5%
Estimated impact of fluctuations in foreign currency exchange rates (3.7)% (3.0)% (3.5)%
Impact of straight-line revenue and expense recognition (0.1)% - -
Impact of significant one-time items 0.5% 0.3% (0.7)%
Outlook midpoint growth 16.9% 16.9% 13.3%

_____

(1) Core Growth in AFFO reflects approximately $25 million of one-time start-up capital improvement capital expenditures related to our joint ventures in Colombia, Ghana and Uganda.
 
Outlook for Capital Expenditures:  
($ in millions)

(Totals may not add due to rounding.)

Full Year 2012

Capital improvement $85   to   $95
Corporate 16 to 20
Redevelopment 75 to 85
Ground lease purchases 70 to 80
Discretionary capital projects (1) 254 to 270
Total $500 to $550

_____

(1) Includes the construction of approximately 2,000 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 $625     to     $660
Interest expense 400 to 395
Depreciation, amortization and accretion 630 to 622
Stock-based compensation expense 55 to 53
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) 140 to 150
Adjusted EBITDA $1,850 to $1,880
 
 

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 $625 to $660
Straight-line revenue (166) - (166)
Straight-line expense 34 - 34
Depreciation, amortization and accretion 630 to 622
Stock-based compensation expense 55 to 53
Non-cash portion of tax provision 26 to 30
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 82 to 89
Capital improvement capital expenditures (85) to (95)
Corporate capital expenditures (16) to (20)
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 third quarter ended September 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) 740-9153International dial-in: (706) 645-9644Passcode: 39720713

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