The following excerpt is from the company's SEC filing.
Telephone: (617) 375-7500
AMERICAN TOWER CORPORATION REPORTS
THIRD QUARTER 2015 HIGHLIGHTS
Total revenue increased 19.2% to $1,238 million
Domestic rental and management segment revenue increased 21.8%, or 21.2% on a core basis
Adjusted EBITDA increased 17.0% to $779 million
International rental and management segment revenue increased 16.5%, or 43.5% on a core basis
AFFO increased 21.4% to $558 million
Network development services segment revenue was $25 million
Boston, Massachusetts – October 29, 2015:
American Tower Corporation (NYSE: AMT) today reported financial results for the quarter ended
September 30, 2015
Jim Taiclet, American Tower's Chief Executive Officer stated, "Our nearly 14% growth in AFFO per Share in the third quarter was fueled by continuing exponential growth in mobile data demand in both the U.S. and in our international markets. We believe that this growth in demand will go on for many years to come, driven by a combination of lower cost smartphones proliferating around the world, additional spectrum being deployed for mobile data and the competitive imperative for mobile operators to steadily invest in their networks.
Our strategic objective is to capture this long-term growth opportunity by building strong positions in the world’s largest free market economies with attractive wireless industry structures. So far in 2015, we have made tremendous progress on expanding American Tower’s global growth platform through our acquisitions of rights to the Verizon towers in the U.S., Telecom Italia’s towers in Brazil, Airtel’s portfolio in Nigeria and our recently announced Viom transaction in India. We expect that these strategically located assets will further lengthen and strengthen our AFFO per Share growth trajectory well into the future."
2015 OPERATING RESULTS OVERVIEW
American Tower generated the following operating results for the quarter ended
(unless otherwise indicated, all comparative information is presented against the quarter ended
September 30, 2014
, and total rental and management revenue increased
Total rental and management revenue Core Growth was approximately
, and total rental and management Organic Core Growth was approximately
Total rental and management Gross Margin increased
, and total rental and management Gross Margin percentage was
, Core Growth in Adjusted EBITDA was
, and Adjusted EBITDA Margin was
Adjusted Funds From Operations (AFFO) increased
, AFFO per Share increased
, and Core Growth in AFFO was approximately
, each of which excludes the impact of the one-time GTP cash tax payment described below.
The Company incurred one-time cash costs of approximately $93 million in the third quarter in connection with its previously disclosed tax election, pursuant to which Global Tower Partners (GTP) REIT was folded into the American Tower REIT and no longer operates as a separate REIT for federal and state income tax purposes.
Net income attributable to American Tower common stockholders decreased
, and Net income attributable to American Tower common stockholders per both basic and diluted common share decreased to
. The decreases were primarily attributable to the one-time GTP cash tax item as well as the non-cash impacts of unfavorable foreign currency exchange rate fluctuations on intercompany balances.
Cash provided by operating activities decreased
for the first nine months of 2015.
Domestic Rental and Management Segment
Organic Core Growth in revenue was
Operating Profit increased
, which represented
of total Operating Profit; and
Operating Profit Margin was
International Rental and Management Segment
, and Core Growth in revenue was
excluding the impact of
of pass-through revenues);
excluding the impact of pass-through revenues).
Network Development Services Segment
Gross Margin was
Operating Profit was
Please refer to “Non-GAAP and Defined Financial Measures” below for definitions of Gross Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New Property Core Growth and Net Leverage Ratio. For additional financial information, including reconciliations to GAAP measures, please refer to the unaudited selected financial information below.
CAPITAL ALLOCATION OVERVIEW
Common Stock Distributions
– During the third quarter of 2015, the Company paid its
2015 distribution of
per share, or a total of approximately
, to common stockholders. Subsequent to the end of the third quarter, the Company paid its
Mandatory Convertible Preferred Stock Dividends
of 2015, the Company paid an aggregate amount of approximately $27 million in Series A and Series B preferred stock dividends. Subsequent to the end of the third quarter, the Company declared dividends on its Series A and Series B preferred stock in an aggregate amount of approximately $27 million, payable on November 16, 2015 to such stockholders of record at the close of business on November 1, 2015.
Cash Paid for Capital Expenditures
, total capital expenditures of
for discretionary capital projects, including spending to complete the construction of 22 towers and the installation of two distributed antenna system networks domestically and the construction of 737 towers and the installation of nine distributed antenna system networks internationally;
to purchase land under the Company’s communications sites;
for start-up capital projects;
for the redevelopment of existing communications sites to accommodate new tenant equipment; and
for capital improvements and corporate capital expenditures.
Cash Paid for Acquisitions
, the Company spent approximately $946 million to acquire
five sites in the U.S. and 6,206 sites internationally.
This included the Company’s acquisition of 4,700 communications sites in Nigeria in the third quarter, as part of its previously announced transaction with Bharti Airtel, for a total consideration of approximately $1.1 billion, including VAT. Of the purchase price, approximately $807 million of the consideration has been paid, with the remainder to be paid prior to January 15, 2016.
Further, on September 30, 2015, the Company closed on an additional 1,125 communications sites in Brazil as part of a previously announced transaction with TIM Celular S.A., for an aggregate purchase price of approximately BRL 517 million (approximately $131 million at the date of acquisition).
Subsequent to the end of the third quarter, the Company announced that one of its wholly owned subsidiaries had entered into a definitive agreement to acquire a 51% controlling interest in Viom Networks Limited, which owns and operates approximately 42,200 wireless
communications towers and 200 indoor distributed antenna systems across India, for a total cash consideration of approximately INR 76 billion (approximately $1,157 million assuming an exchange rate of 66 INR per USD). The Company expects the transaction to close in mid-2016.
For the quarter ended
, the Company’s Net Leverage Ratio was approximately
net debt (total debt less cash and cash equivalents) to
2015 annualized Adjusted EBITDA.
, the Company had approximately
of total liquidity, comprised of the ability to borrow up to an aggregate of approximately
under its revolving credit facilities, net of outstanding letters of credit, and approximately $0.3 billion in cash and cash equivalents.
Subsequent to the end of the quarter, the Company extended the maturity dates of its 2014 Credit Facility, 2013 Credit Facility and Term Loan to January 29, 2021, June 28, 2019 and January 29, 2021, respectively.
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 29,
. 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 current outlook reflects unfavorable impacts of foreign currency fluctuations of approximately $56 million for total rental and management revenue, $30 million for Adjusted EBITDA and $28 million for AFFO, relative to the foreign exchange rate assumptions used in the Company's prior outlook.
After incorporating these impacts, the Company has reduced the midpoint of its full year 2015 outlook for total rental and management revenue by
, and raised the midpoint for Adjusted EBITDA by $5 million and AFFO by $10 million.
The Company's outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for the fourth quarter of 2015: (a)
Brazilian Reais; (b)
Chilean Pesos; (c)
Colombian Pesos; (d)
Ghanaian Cedi; (f)
Indian Rupees; (g)
Mexican Pesos; (h)
Nigerian Naira; (i)
Peruvian Soles; (j)
South African Rand; and (k)
Ugandan Shillings. These assumptions are based on the more conservative of: (a) the 30-day average spot rate; or (b) the average Bloomberg forecast for each currency.
($ in millions)
Full Year 2015
See “Non-GAAP and Defined Financial Measures” below.
The Company’s outlook for total rental and management revenue reflects the following at the midpoint:
Domestic rental and management segment revenue of
and Organic Core Growth of approximately 7%; and
International rental and management segment revenue of $
and Organic Core Growth of nearly 11%. International rental and management segment revenue includes approximately
of pass-through revenue.
The calculation of midpoint Core Growth is as follows:
(Totals may not add due to rounding)
Total Rental and
Outlook midpoint Core Growth
Impact of pass-through revenues
Estimated impact of fluctuations in foreign currency exchange rates
Impact of straight-line revenue and expense recognition
Impact of significant one-time items
Outlook midpoint growth
Total Rental and Management Revenue Core Growth Components
Reflects growth at the midpoint of outlook ranges. Excludes pass-through revenue.
Revenue growth attributable to sites added to the portfolio on or after January 1, 2014.
Outlook for Capital Expenditures:
Discretionary capital projects
Ground lease purchases
Start-up capital projects
Includes the construction of approximately
Reconciliations of Outlook for Net Income to Adjusted EBITDA:
Depreciation, amortization and accretion
Income tax provision
Stock-based compensation expense
Other, including other operating expenses, interest income, (gain) loss on retirement of long-term obligations, (income) loss on equity method investments and other expense (income)
Includes approximately $93 million one-time cash tax charge as part of the tax election related to the GTP REIT.
Reconciliations of Outlook for Net Income to AFFO:
Non-cash portion of tax provision
GTP REIT one-time cash tax charge
Other, including other operating expenses, amortization of deferred financing costs, capitalized interest, debt discounts and premiums, (gain) loss on retirement of long-term obligations, other expense (income), non-cash interest related to joint venture shareholder loans and dividends on preferred stock
Capital improvement capital expenditures
Corporate capital expenditures
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, 2015 and its outlook for
. Supplemental materials for the call will be available on the Company’s website,
. The conference call dial-in numbers are as follows:
U.S./Canada dial-in: (877) 586-5042
International dial-in: (706) 645-9644
When available, a replay of the call can be accessed until 11:59 p.m. ET on November 5,
. The replay dial-in numbers are as follows:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
American Tower will also sponsor a live simulcast and replay of the call on its website,
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 99,000 communications sites. For more information about American Tower, please visit the “Earnings Materials” and “Company & Industry Resources” sections of our investor relations website at
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, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New Property Core Growth and Net Leverage Ratio. The Company uses Funds From Operations as defined by the National Association of Real Estate Investment Trusts (NAREIT), referred to herein as NAREIT Funds From Operations.
The Company defines Gross Margin as 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 defines Operating Profit as Gross Margin less selling, general, administrative and development expense, excluding stock-based compensation expense and corporate expenses. For reporting purposes, the international rental and management segment Operating Profit and Gross Margin also include interest income, TV Azteca, net. These measures of Gross Margin and Operating Profit are also before interest income, interest expense, gain (loss) on retirement of long-term obligations, other income (expense), net income (loss) attributable to non-controlling interest, income (loss) on equity method investments and income tax benefit (provision). The Company defines Operating Profit Margin as the percentage that results from dividing Operating Profit by revenue. The Company defines Adjusted EBITDA as net income before income (loss) from discontinued operations, net, 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 defines Adjusted EBITDA Margin as the percentage that results from dividing Adjusted EBITDA by total revenue. NAREIT Funds From Operations is defined as 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 interest. The Company defines AFFO as NAREIT Funds From Operations before (i) straight-line revenue and expense, (ii) stock-based compensation expense, (iii) the non-cash portion of our tax provision, (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 interest, less cash payments related to capital improvements and cash payments related to corporate capital expenditures. The Company defines AFFO per Share as AFFO divided by the diluted weighted average common shares outstanding. The Company defines Core Growth in total rental and management revenue, Adjusted EBITDA and AFFO as the increase or decrease, expressed as a percentage, resulting from a comparison of financial results for a current period with corresponding financial results for the corresponding period in a prior year, in each case, excluding the impact of pass-through revenue (expense), where applicable, straight-line revenue and expense recognition, foreign currency exchange rate fluctuations and significant one-time items. The Company defines Organic Core Growth in rental and management revenue as the increase or decrease, expressed as a percentage, resulting from a comparison of financial results for a current period with corresponding financial results for the corresponding period in a prior year, in each case, excluding the impact of pass-through revenue (expense), straight-line revenue and expense recognition, foreign currency exchange rate fluctuations, significant one-time items and revenue associated with new properties that the Company has added to the portfolio since the beginning of the prior period. The Company defines New Property Core Growth in rental and management revenue as the increase or decrease, expressed as a percentage, on the properties the Company has added to its portfolio since the beginning of the prior period, in each case excluding the impact of pass-through revenue (expense), straight-line revenue and expense recognition, foreign currency exchange rate fluctuations and significant one-time items. The Company defines Net Leverage Ratio as net debt (total debt, less cash and cash equivalents) divided by last quarter annualized Adjusted EBITDA. 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. The Company believes that these measures can assist in comparing company performances on a consistent basis irrespective of depreciation and amortization or capital structure. Depreciation and amortization can vary significantly among companies depending on accounting methods, particularly where acquisitions or non-operating factors, including historical cost bases, are involved. Notwithstanding the foregoing, the Company's measures of Gross Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New Property Core Growth and Net Leverage Ratio may not be comparable to similarly titled measures used by other companies.
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 2015 outlook, foreign currency exchange rates, our expectation regarding the leasing demand for communications real estate and the anticipated closing of acquisitions. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) decrease in demand for our communications sites would materially and adversely affect our operating results, and we cannot control that demand; (2) if our tenants share site infrastructure to a significant degree or consolidate or merge, our growth, revenue and ability to generate positive cash flows could be materially and adversely affected; (3) increasing competition for tenants in the tower industry may materially and adversely affect our pricing; (4) competition for assets could adversely affect our ability to achieve our return on investment criteria; (5) our business is subject to government regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (6) our leverage and debt service obligations may materially and adversely affect us; (7) failure to successfully and efficiently integrate acquired or leased assets, including those leased from Verizon, into our operations may adversely affect our business, operations and financial condition; (8) our expansion initiatives involve a number of risks and uncertainties that could adversely affect our operating results, disrupt our operations or expose us to additional risk; (9) 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; (10) a substantial portion of our revenue is derived from a small number of tenants, and we are sensitive to changes in the creditworthiness and financial strength of our tenants; (11) new technologies or changes in a tenant’s business model could make our tower leasing business less desirable and result in decreasing revenues; (12) if we fail to remain qualified as a REIT, we will be subject to tax at corporate income tax rates, which may
substantially reduce funds otherwise available; (13) complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities; (14) certain of our business activities may be subject to corporate level income tax and foreign taxes, which reduce our cash flows and may create deferred and contingent tax liabilities; (15) we may need additional financing to fund capital expenditures, future growth and expansion initiatives and to satisfy our REIT distribution requirements; (16) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; (17) if we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, our cash flows derived from such towers will be eliminated; (18) 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 if we fail to pay scheduled dividends on our preferred stock, which may jeopardize our qualification for taxation as a REIT; (19) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated; (20) we could have liability under environmental and occupational safety and health laws; and (21) our towers, data centers or computer systems may be affected by natural disasters and other unforeseen events for which our insurance may not provide adequate coverage. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of our Form 10-K for the year ended December 31, 2014. We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Accounts receivable, net
Prepaid and other current assets
Deferred income taxes
Total current assets
PROPERTY AND EQUIPMENT, NET
OTHER INTANGIBLE ASSETS, NET
DEFERRED INCOME TAXES
DEFERRED RENT ASSET
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS
LIABILITIES AND EQUITY
Current portion of long-term obligations
Total current liabilities
ASSET RETIREMENT OBLIGATIONS
OTHER NON-CURRENT LIABILITIES
COMMITMENTS AND CONTINGENCIES
5.25%, Series A Preferred Stock
5.50%, Series B Preferred Stock
Additional paid-in capital
Distributions in excess of earnings
Accumulated other comprehensive loss
Total American Tower Corporation equity
December 31, 2014 balances have been revised to reflect purchase accounting measurement period adjustments.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
Nine Months Ended
Rental and management
Total operating revenues
Costs of operations (exclusive of items shown separately below):
Rental and management (including stock-based compensation expense of $396, $344, $1,218 and $1,059, respectively)
Network development services (including stock-based compensation expense of $99, $101, $336 and $343, respectively)
Selling, general, administrative and development expense (including stock-based compensation expense of $17,850, $17,824, $70,697 and $60,306, respectively)
Other operating expenses
Total operating expenses
OTHER INCOME (EXPENSE):
Interest income, TV Azteca, net
Gain (loss) on retirement of long-term obligations
Other expense (including unrealized foreign currency losses of $77,864, $36,998, $107,871 and $62,556, respectively)
Total other expense
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
Net loss attributable to noncontrolling interest
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS
Dividends on preferred stock
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common stockholders
Diluted net income attributable to American Tower Corporation common stockholders
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30,
CASH FLOWS FROM OPERATING ACTIVITIES:
Adjustments to reconcile net income to cash provided by operating activities:
Loss (gain) on early retirement of long-term obligations
Other non-cash items reflected in statements of operations
Increase in net deferred rent asset
Decrease in restricted cash
Increase in assets
Increase in liabilities
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for purchase of property and equipment and construction activities
Payments for acquisitions, net of cash acquired
Payment for Verizon transaction
Proceeds from sale of assets, net of cash
Proceeds from sale of short-term investments and other non-current assets
Payments for short-term investments
Deposits, restricted cash and other
Cash used for investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term borrowings, net
Borrowings under credit facilities
Proceeds from issuance of senior notes, net
Proceeds from term loan
Proceeds from other long-term borrowings
Proceeds from issuance of securities in securitization transaction
Repayments of notes payable, credit facilities, senior notes and capital leases
Contributions from noncontrolling interest holders, net
Proceeds from stock options and stock purchase plan
Proceeds from the issuance of common stock, net
Proceeds from the issuance of preferred stock, net
Payment for early retirement of long-term obligations
Deferred financing costs and other financing activities
Purchase of noncontrolling interest
Distributions paid on common stock
Distributions paid on preferred stock
Cash provided by (used for) financing activities
Net effect of changes in foreign currency exchange rates on cash and cash equivalents
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD
CASH PAID FOR INCOME TAXES, NET
CASH PAID FOR INTEREST
UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT
(In thousands, except percentages. Totals may not add due to rounding.)
Three Months Ended September 30, 2015
Segment operating expenses
Segment Gross Margin
Segment selling, general, administrative and development expense
Segment Operating Profit
Segment Operating Profit Margin
Percent of total Operating Profit
Three Months Ended September 30, 2014
Excludes stock-based compensation expense.
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to rounding.)
SELECTED BALANCE SHEET DETAIL:
Long-term obligations summary, including current portion
2013 Term Loan
2.800% senior notes due 2020
3.40% senior notes due 2019
3.450% senior notes due 2021
3.50% senior notes due 2023
4.000% senior notes due 2025
4.500% senior notes due 2018
4.70% senior notes due 2022
5.00% senior notes due 2024
5.050% senior notes due 2020
5.900% senior notes due 2021
7.25% senior notes due 2019
Total unsecured debt at American Tower Corporation
Secured Tower Revenue Securities, Series 2013-1A
Secured Tower Revenue Securities, Series 2013-2A
American Tower Secured Revenue Notes, Series 2015-1 Class A
American Tower Secured Revenue Notes, Series 2015-2 Class A
Secured Tower Cellular Side Revenue Notes, Series, 2012-1 Class A, Series 2012-2 Class A, Series 2012-2 Class B and Series 2012-2 Class C
South African facility
Colombian credit facility
BR Towers debentures
Brazil credit facility
Other debt, including capital leases
Total secured or subsidiary debt
Net debt (total debt less cash and cash equivalents)
Secured debt assumed in connection with an acquisition.
Denominated in local currency.
Assumed in connection with an acquisition.
Reflects balances attributable to minority shareholder loans in the Company's joint ventures in Ghana and Uganda. The Ghana shareholder loan is denominated in Ghanaian Cedi and the Uganda shareholder loan is denominated in USD.
SELECTED BALANCE SHEET DETAIL (CONTINUED):
Calculation of Net Leverage Ratio
($ in thousands)
Numerator: net debt (total debt less cash and cash equivalents)
Denominator: annualized Adjusted EBITDA
Share count rollforward:
(in millions of shares)
Total common shares, beginning of period
Common shares repurchased
Common shares issued
Total common shares outstanding, end of period
As of September 30, 2015, excludes (a)
million potentially dilutive common shares associated with vested and exercisable stock options with an average exercise price of $
per common share, (b)
million potentially dilutive common shares associated with unvested stock options, (c)
million potentially dilutive common shares associated with unvested restricted stock units and (d) the potentially dilutive common shares associated with the Company’s preferred stock.
SELECTED STATEMENT OF OPERATIONS DETAIL:
Rental and management segment straight-line revenue and expense
Domestic straight-line revenue and expense detail:
International straight-line revenue and expense detail:
In accordance with GAAP, the Company recognizes rental and management revenue and expense related to non-cancellable tenant and ground lease agreements with fixed escalations on a straight-line basis, over the applicable lease term. As a result, the Company’s revenue recognized may differ materially from the amount of cash collected per tenant lease, and the Company’s expense incurred may differ materially from the amount of cash paid per ground lease. Additional information regarding straight-line accounting can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 in the section entitled “Revenue Recognition,” in note 1, “Business and Summary of Significant Accounting Policies” within the notes to the consolidated financial statements. The above table sets forth a summary of total rental and management straight-line revenue and expense, which represents the non-cash revenue and expense recorded due to straight-line recognition.
($ in thousands. Totals may not add due to rounding.)
SELECTED STATEMENT OF OPERATIONS DETAIL (CONTINUED):
International pass-through revenue detail:
Pre-paid rent detail
(1) Reflects cash received for capital contributions and prepayments associated with long-term tenant leases and amortization of GAAP revenue associated with the leases corresponding to the capital contributions or prepayments.
(2) Excludes the impacts of decommissioning revenues and termination fees.
(3) Includes the impact of foreign currency exchange rate fluctuations.
Selling, general, administrative and development expense breakout:
Total rental and management overhead
Network development services segment overhead
Corporate and development expenses
The following table reflects the estimated impact of foreign currency exchange rate fluctuations, pass-through revenue (expense), straight-line revenue and expense recognition and material one-time items on total rental and management revenue, Adjusted EBITDA and AFFO:
The calculation of Core Growth is as follows:
Estimated Impact of straight-line revenue recognition
Estimated Impact of material one-time items
The components of Core Growth in rental and management revenue are as follows:
(1) Revenue growth attributable to sites added to the portfolio on or after July 1, 2014.
SELECTED CASH FLOW DETAIL:
Payments for purchase of property and equipment and construction activities:
Discretionary - capital projects
Discretionary - ground lease purchases
SELECTED PORTFOLIO DETAIL – OWNED AND OPERATED SITES:
As of June 30, 2015
Excludes in-building and outdoor distributed antenna system networks.
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED FINANCIAL MEASURES
(In thousands, except per share data and percentages. Totals may not add due to rounding.)
The reconciliation of net income to Adjusted EBITDA and the calculation of Adjusted EBITDA Margin are as follows:
Gain on retirement of long-term obligations
Divided by total revenue
The reconciliation of net income to NAREIT Funds From Operations and the calculation of AFFO and AFFO per Share are presented below:
Real estate related depreciation, amortization and accretion
Losses from sale or disposal of real estate and real estate related impairment charges
Adjustments for unconsolidated affiliates and noncontrolling interest
Non-real estate related depreciation, amortization and accretion
Amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges
GTP REIT one-time charge
Divided by weighted average diluted shares outstanding
In the third quarter, the Company filed a tax election, pursuant to which GTP no longer operates as a REIT for federal and state income tax purposes. In connection with this election, the Company incurred a one-time cash tax charge during the third quarter of 2015. As this charge is non-recurring, the Company does not believe it is an indication of operating performance and believes it is more meaningful to reflect AFFO excluding its impact. Accordingly, the Company presents AFFO for the three months ended September 30, 2015 excluding this charge.
Primarily includes unrealized losses on foreign currency exchange rate fluctuations.
Primarily includes acquisition related costs, integration costs, losses from sale of assets and impairment charges.
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. American Tower Corporation (REIT) next reports earnings on October 29, 2015.
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