American Tower Corporation Reports First Quarter 2006 Results.BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. -- American Tower Corporation Formed in 1995, American Tower Corporation is a publicly held company (NYSE: AMT) that is a leading owner and operator of wireless and broadcast communications sites in North America. Today American Tower owns and operates over 30,000 sites in the United States, Mexico and Brazil. (NYSE NYSE See: New York Stock Exchange : AMT See vPro. ): FIRST QUARTER 2006 HIGHLIGHTS --Total revenues increased to $320.4 million --Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased to $216.3 million --Cash provided by operating activities increased to $151.7 million --Repurchased $293.2 million of its Class A common stock to date American Tower Corporation (NYSE: AMT) today reported financial results for the first quarter ended March 31, 2006. Jim Taiclet, American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Tower's Chief Executive Officer stated, "American Tower made significant progress over the past quarter. We have substantially completed the integration related to our merger with SpectraSite, while continuing to deliver strong performance across our entire portfolio. When compared to pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results for the first quarter of 2005, our revenues and Adjusted EBITDA grew 14% and 29%, respectively. Additionally, we continue to lead the industry in operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , which are now meeting our pre-merger levels. "With our solid first quarter results and the strong performance of our wireless carrier customers, we expect to continue to deliver strong operating results as we focus on leveraging the quality of our diversified diversified (di·verˑ·s tower portfolio and integrated operations to meet our customers' needs. We are excited to build on our operational momentum as we continue to refine our processes to decrease our cycle times and improve our service to our customers, enabling them to deploy their networks in a cost effective, time efficient manner." First Quarter 2006 Operating Highlights American Tower generated the following operating results for the quarter ended March 31, 2006 (unless otherwise indicated, all comparative information is compared against the quarter ended March 31, 2005): Total revenues increased 74% to $320.4 million and rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. and management segment revenues increased 74% to $316.3 million, of which $108.5 million was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to SpectraSite. Revenue for the quarter ended March 31, 2006 included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.3 million of net positive non-recurring items. Rental and Management Segment Gross Margin increased 76% to $240.2 million, of which $77.1 million was attributable to SpectraSite. Rental and Management Segment Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased 80% to $224.5, of which $71.9 million was attributable to SpectraSite. Adjusted EBITDA increased 83% to $216.3 million, of which $68.9 million was attributable to SpectraSite. Adjusted EBITDA Margin was 67%. Income from operations increased to $69.0 million, of which $14.9 million was attributable to SpectraSite. Loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the decreased to $2.3 million, which includes $9.1 million of income from continuing operations attributable to SpectraSite. Net loss decreased to $2.6 million, or $(0.01) per share, which includes $9.1 million of net income attributable to SpectraSite. Free Cash Flow was $123.3 million, of which $52.0 million was attributable to SpectraSite. Free Cash Flow was comprised of $151.7 million of cash provided by operating activities less $28.4 million of payments for purchase of property and equipment and construction activities, including $11.4 million of discretionary capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . The Company completed the construction of 54 towers and the installation of 13 in-building systems during the quarter. Please refer to the definitions of non-GAAP and defined financial measures, including Rental and Management Segment Gross Margin, Rental and Management Segment Operating Profit, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow, and reconciliations to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures on page 9 and to the supplemental schedules for selected American Tower and SpectraSite stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." financial information on page 8. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program and Financing Highlights The Company has repurchased a total of 9.9 million shares of its Class A common stock to date, for approximately $293.2 million, as part of its previously announced $750 million stock repurchase program. During the quarter ended March 31, 2006, the Company repurchased approximately 5.5 million shares of its Class A common stock for approximately $165.5 million, and, as of April 26, 2006, had repurchased an additional 1.6 million shares of its Class A common stock for approximately $51.1 million subsequent to the end of the first quarter of 2006. The Company expects to complete this stock repurchase program in the second half of 2006, and upon completion, expects that it will continue its stock repurchase activity by extending or supplementing the current program with additional repurchases. As previously reported, the Company completed the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of all outstanding 12.25% senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. discount notes of American Towers, Inc. (ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. 12.25% Notes) in February February: see month. 2006. During the quarter ended March 31, 2006, the warrants associated with the ATI 12.25% notes became exercisable, and the Company issued an aggregate of 9.7 million shares of its Class A common stock upon the exercise of 0.7 million warrants. A summary of stock repurchase and issuance activity that occurred during the quarter ended March 31, 2006 is included on page 8 of this release. Second Quarter and Full Year 2006 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 April 26, 2006. Please refer to the cautionary language regarding "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements included in this press release when considering this information. The Company undertakes no obligation to update this information.
($ in millions) Second Quarter Full Year
2006 2006
-------------- ---------
Rental and management segment revenue $314 to $318 $1,270 to $1,290
Rental and management segment gross
margin $233 to $238 $948 to $971
Services segment revenue $3 to $4 $12 to $16
Services segment gross margin $2 to $2 $7 to $7
Total revenue $317 to $322 $1,282 to $1,306
Total gross margin $235 to $240 $955 to $978
Adjusted EBITDA $210 to $214 $855 to $875
Interest expense $56 to $54 $230 to $220
Income from continuing operations $1 to $3 $1 to $25
Payments for purchase of property and
equipment and construction
activities (1) $30 to $35 $110 to $130
(1) The Company's full year 2006 outlook for capital expenditures
includes $55 million to $75 million for the construction of
approximately 275 new wireless towers, the installation of 40
in-building systems and $10 million of land purchases.
The reconciliation of income from continuing operations to Adjusted
EBITDA is as follows:
($ in millions) Second Quarter Full Year
2006 2006
-------------- ---------
Income from continuing operations (1) $1 to $3 $1 to $25
Depreciation, amortization and
accretion (2) $138 to $136 $543 to $537
Interest Expense $56 to $54 $230 to $220
Other (3) $15 to $21 $81 to $93
Adjusted EBITDA $210 to $214 $855 to $875
(1) The Company has not reconciled Adjusted EBITDA to net loss because
it does not provide guidance for loss from discontinued
operations, net, which is the reconciling item between loss from
continuing operations and net loss.
(2) Depreciation, amortization and accretion expense included in the
calculation of income from continuing operations is based on the
preliminary purchase price allocation of SpectraSite and is
subject to change.
(3) Other includes impairments, net loss on sale of long-lived assets,
restructuring and merger related expense, non-cash stock-based
compensation expense, interest income, loss on retirement of
long-term obligations, earnings (loss) on equity method
investments, other (expense) income, income tax (provision)
benefit and minority interest in net earnings of subsidiaries.
Conference Call Information American Tower will host a conference call today at 8:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to discuss its first quarter results for 2006 and the Company's outlook for the second quarter and full year 2006. The call will be hosted by Brad Singer, Chief Financial Officer, who will be joined by Jim Taiclet, Chairman and Chief Executive Officer. The dial-in numbers are US/Canada: (877) 235-9047 and International: (706) 645-9644, access code 7942482. A replay of the call will be available from 11:30 a.m. EST April 26, 2006 until 11:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. May 3, 2006. The replay dial-in numbers are US/Canada: (800) 642-1687 and International: (706) 645-9291, access code 7942482. American Tower will also sponsor a live simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. of the call on its website, http://investor.americantower.com. When available, a replay of the call will be accessible on the Company's website. American Tower is the leading independent owner, operator and developer of broadcast and wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. sites in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. . American Tower owns and operates over 22,000 sites in the United States, Mexico, and Brazil. Additionally, American Tower manages approximately 2,000 revenue producing rooftop and tower sites. For more information about American Tower, please visit www.americantower.com. Non-GAAP and Defined Financial Measures In addition to the results prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) provided throughout this press release, the Company has presented the following non-GAAP and defined financial measures: Rental and Management Segment Gross Margin, Rental and Management Segment Operating Profit, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow. American Tower defines Rental and Management Segment Gross Margin as income from operations before depreciation, amortization and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the , impairments, net loss on sale of long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. assets, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and merger related expense, non-cash stock-based compensation expense, corporate expenses, rental and management segment overhead, services segment overhead, services segment operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , services segment revenue, plus interest income, TV Azteca TV Azteca is the second largest Mexican television network. It was established in 1968 as the state-owned Instituto Mexicano de la Televisión ("Imevisión"), and was privatized under its current name in 1993. Its flagship program is the newscast Hechos. , net. American Tower defines Rental and Management Segment Operating Profit as income from operations before depreciation, amortization and accretion, impairments, net loss on sale of long-lived assets, restructuring and merger related expense, non-cash stock-based compensation expense, corporate expenses, services segment overhead, services segment operating expenses, services segment revenue, plus interest income, TV Azteca, net. American Tower defines Adjusted EBITDA as income from operations before depreciation, amortization and accretion, impairments, net loss on sale of long-lived assets, restructuring and merger related expense, non-cash stock-based compensation expense, plus interest income, TV Azteca, net. American Tower defines Adjusted EBITDA Margin as a percentage of Adjusted EBITDA over total revenues. American Tower defines Free Cash Flow as cash provided by operating activities less payments for purchase of property and equipment and construction activities. These measures are not intended as substitutes for other measures of financial performance determined in accordance with GAAP. They are presented as additional information because management believes they are useful indicators of the current financial performance of our core businesses. We believe that these measures can assist in comparing company performances on a consistent basis without regard to depreciation and amortization or capital structure. Our concern is that 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. Additionally, interest expense may vary significantly depending on capital structure. Notwithstanding the foregoing, the Company's measures of Rental and Management Segment Gross Margin, Rental and Management Segment Operating Profit, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP measures are included above and on page 9 of this press release. The Company's results under GAAP are set forth in the financial statements attached as pages 5 to 7 of this press release. Cautionary Language Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains "forward-looking statements" concerning the Company's 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, our second quarter and full year 2006 Outlook, stock repurchase program and planned future capital expenditures. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) a decrease in demand for tower space would materially and adversely affect our operating results and we cannot control that demand; (2) if our wireless service provider customers consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. or merge See mail merge and concatenate. with each other to a significant degree, our growth, revenue and ability to generate positive cash flows could be adversely affected; (3) substantial leverage and debt service obligations may adversely affect us; (4) restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. in our credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and indentures could adversely affect our business by limiting flexibility; (5) due to the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. expectations of revenue from tenant leases, the tower industry is sensitive to the creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. of its tenants; (6) our foreign operations are subject to economic, political and other risks that could adversely affect our revenues or financial position; (7) a substantial portion of our revenues is derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from a small number of customers; (8) status of Iusacell Iusacell Grupo Iusacell is Mexico's #3 mobile operator. The company provides cellular services reaching about 90% of Mexico's population, including Mexico City and received more licenses to cover the remaining regions in early 2005. It has more than 4. Celular's financial restructuring exposes us to risks and uncertainties; (9) we may not realize the intended benefits of the merger if we are unable to integrate SpectraSite's operations, wireless communication tower portfolio, customers and personnel in a timely and efficient manner, which could adversely affect our business and the value of our Class A common stock; (10) we expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. substantial expenses related to the integration of SpectraSite; (11) new technologies could make our tower leasing business less desirable to potential tenants and result in decreasing revenues; (12) we could have liability under environmental laws; (13) our business is subject to government regulations and changes in current or future laws or regulations could restrict In the C programming language, the data pointed to by a pointer declared with the restrict qualifier may not be pointed to by any other pointer. This allows for more effective optimization. our ability to operate our business as we currently do; (14) increasing competition in the tower industry may create pricing pressures that may adversely affect us; (15) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; (16) if we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. agreements at the end of the applicable period, our cash flows derived from such towers would be eliminated; (17) our towers may be affected by natural disasters and other unforeseen damage for which our insurance may not provide adequate coverage; (18) our costs could increase and our revenues could decrease due to perceived per·ceive tr.v. per·ceived, per·ceiv·ing, per·ceives 1. To become aware of directly through any of the senses, especially sight or hearing. 2. To achieve understanding of; apprehend. health risks from radio emissions emissions npl → émissions fpl emissions npl → Emissionen pl , especially if these risks are substantiated; and (19) the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most proceeding of our Verestar subsidiary exposes us to risks and uncertainties. For other important 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2005 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands) March 31, December 31,
2006 2005
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 85,573 $ 112,701
Accounts receivable, net 33,216 33,942
Prepaid and other current assets 77,266 47,876
Deferred income taxes 31,359 31,359
----------- -----------
Total current assets 227,414 225,878
----------- -----------
Property and equipment, net 3,386,262 3,460,526
Goodwill and other intangible assets, net 4,168,736 4,219,863
Deferred income taxes 500,029 504,659
Notes receivable and other long-term assets 384,991 357,294
----------- -----------
Total $8,667,432 $8,768,220
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 175,010 $ 175,558
Accrued interest 52,652 37,850
Current portion of long-term obligations 1,783 162,153
Unearned revenue 71,090 77,655
----------- -----------
Total current liabilities 300,535 453,216
----------- -----------
Long-term obligations 3,607,768 3,451,276
Other long-term liabilities 337,578 327,354
----------- -----------
Total liabilities 4,245,881 4,231,846
----------- -----------
Minority interest in subsidiaries 9,922 9,794
----------- -----------
STOCKHOLDERS' EQUITY
Class A Common Stock 4,288 4,156
Additional paid-in capital 7,361,766 7,317,668
Accumulated deficit (2,713,578) (2,710,993)
Unearned compensation (2,497)
Accumulated other comprehensive income (loss) 5,624 (803)
Treasury stock (246,471) (80,951)
----------- -----------
Total stockholders' equity 4,411,629 4,526,580
----------- -----------
Total $8,667,432 $8,768,220
=========== ===========
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended
(In thousands, except per share data) March 31,
-------------------
2006 2005
--------- ---------
REVENUES:
Rental and management $316,259 $181,570
Network development services 4,150 2,785
--------- ---------
Total operating revenues 320,409 184,355
--------- ---------
OPERATING EXPENSES:
Rental and management 79,541 48,225
Network development services 2,071 1,432
Depreciation, amortization and accretion 133,261 81,971
Selling, general, administrative and
development expense (including
non-cash stock compensation expense in 2006 of
$8,954) (1) 34,975 19,698
Impairments, net loss on sale of long-lived
assets, restructuring and
merger related expense 1,514 2,777
--------- ---------
Total operating expenses 251,362 154,103
--------- ---------
INCOME FROM OPERATIONS 69,047 30,252
--------- ---------
OTHER INCOME (EXPENSE):
Interest income, TV Azteca, net 3,498 3,498
Interest income 1,358 699
Interest expense (54,257) (54,716)
Loss on retirement of long-term obligations (21,577) (15,042)
Other income 3,729 670
--------- ---------
Total other expense (67,249) (64,891)
--------- ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE
INCOME
--------- ---------
TAXES, MINORITY INTEREST AND EQUITY METHOD
INVESTMENTS 1,798 (34,639)
--------- ---------
Income tax (provision) benefit (3,812) 4,338
Minority interest in net earnings of
subsidiaries (257) (55)
Income (loss) on equity method investments 4 (1,098)
--------- ---------
LOSS FROM CONTINUING OPERATIONS (2,267) (31,454)
LOSS FROM DISCONTINUED OPERATIONS, NET (318) (107)
--------- ---------
NET LOSS $ (2,585) $(31,561)
========= =========
BASIC AND DILUTED NET LOSS PER COMMON SHARE
AMOUNTS
Loss from continuing operations $ (0.01) $ (0.14)
Loss from discontinued operations
--------- ---------
BASIC AND DILUTED NET LOSS PER
COMMON SHARE $ (0.01) $ (0.14)
========= =========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 417,379 230,158
========= =========
(1) Please note that the Company has consolidated all of its overhead
expenses into one line-item entitled "selling, general,
administrative and development expense". Previously, the Company
allocated overhead specific to its rental and management segment
to rental and management operating expenses and overhead specific
to its services segment to services operating expenses. Please
refer to page 8 for a breakout of selling, general, administrative
and development expense into the Company's previous
classifications.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended
(In thousands) March 31,
--------------------
2006 2005
--------- ---------
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net loss $ (2,585) $(31,561)
Non-cash items reflected in statements of
operations 169,557 109,829
(Increase) decrease in assets (30,762) 13,606
Increase in liabilities 15,486 681
--------- ---------
Cash provided by operating activities 151,696 92,555
--------- ---------
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Payments for purchase of property and equipment
and construction activities (28,376) (15,881)
Payments for acquisitions (724) (932)
Payment for acquisition of Mexico minority
interest (7,270)
Proceeds from sale of businesses and other
long-term assets 1,636 910
Deposits and other investing activities (50) (310)
--------- ---------
Cash used for investing activities (27,514) (23,483)
--------- ---------
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Borrowings under credit facilities 179,000
Repayment of notes payable, credit facilities
and capital leases (182,024) (169,086)
Purchases of Class A common stock (162,680)
Net proceeds from stock options and warrants 16,179 7,500
Deferred financing costs and other financing
activities (1,785) (246)
--------- ---------
Cash used for financing activities (151,310) (161,832)
--------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (27,128) (92,760)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 112,701 215,557
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 85,573 $122,797
========= =========
CASH PAID FOR INCOME TAXES $ 7,333 $ 958
========= =========
CASH PAID FOR INTEREST $ 34,971 $ 37,255
========= =========
UNAUDITED SUPPLEMENTAL INFORMATION
Selected Operating Results
($ in thousands) Three Months Ended,
March 31, 2006
-----------------------------------
Selected Income Statement Results: American SpectraSite Consolidated
Tower
Total revenue $ 211,946 108,463 $ 320,409
Total operating expense (50,283) (31,329) (81,612)
Selling, general, administrative
and development expense (23,520) (11,455) (34,975)
Add: non-cash stock-based
compensation expense 5,695 3,259 8,954
Interest income, TV Azteca, net 3,498 3,498
---------- ---------- ----------
Adjusted EBITDA $ 147,336 $ 68,938 $ 216,274
========== ========== ==========
Selling, General, Administrative
and Development Expense Breakout:
Rental & management segment
overhead $ 10,466 $ 5,280 $ 15,746
Services segment overhead 1,053 1,053
Corporate expenses 6,306 2,916 9,222
Non-cash stock-based compensation
expense 5,695 3,259 8,954
---------- ---------- ----------
Total selling, general,
administrative and development
expense $ 23,520 $ 11,455 $ 34,975
========== ========== ==========
Selected Statement of Cash Flows
Results:
Cash provided by operating
activities $ 92,743 $ 58,953 $ 151,696
Payments for purchase
of property and equipment
and construction
activities
Discretionary 8,493 2,858 11,351
Improvements/Augumentation 12,046 4,074 16,120
Corporate 905 905
---------- ---------- ----------
Total 21,444 6,932 28,376
========== ========== ==========
Selected Balance Sheet Detail
($ in millions) March 31, 2006
----------------------------------
Long-term obligations summary, American SpectraSite Consolidated
including current portion Tower
Credit Facilities $ 972 $ 700 $ 1,672
7.250% Senior Subordinated Notes,
due 2011 400 400
7.500% Senior Notes, due 2012 225 225
7.125% Senior Notes, due 2012 502 502
5.000% Convertible Notes, due
2010 276 276
3.250% Convertible Notes, due
2010 130 130
3.000% Convertible Notes, due
2012 344 344
Other debt 61 61
---------- ---------- ----------
Total debt $ 2,910 $ 700 $ 3,610
Cash and cash equivalents 66 20 86
---------- ---------- ----------
Net debt (Total debt less Cash
and cash equivalents) $ 2,844 $ 680 $ 3,524
========== ========== ==========
Share Count Rollforward
(in millions)
Total shares outstanding, as of
December 31, 2005 412.7
Shares issued - employee stock
option exercises 1.6
Shares issued - convertible note
conversions 1.8
Shares issued - warrant exercises 9.7
Shares repurchased (5.5)
----------
Total shares outstanding, as of
March 31, 2006 420.3
==========
Selected Portfolio Detail -
Owned Wireless, Broadcast and
In-building Systems
Three Months Ended
March 31, 2006
Tower Count Wireless Broadcast In- Total
building
-------- -------- -------- --------
Beginning balance,
January 1, 2006 21,659 407 108 22,174
New construction 54 13 67
Acquisitions 4 4
Reductions (23) (23)
-------- -------- -------- --------
Ending balance, March 31, 2006 21,694 407 121 22,222
======== ======== ======== ========
UNAUDITED RECONCILIATIONS TO GAAP MEASURES
($ in thousands)
The reconciliation of
net (loss) income to
Adjusted EBITDA,
Rental and Management
Segment Operating
Profit and Rental and Three Months Ended Three Months Ended
Management Gross March 31, March 31,
Margin is as follows: 2006 2005
-----------------------------------------------
American SpectraSite Consolidated Consolidated
Tower
Net (loss) income $(11,669) $ 9,084 $ (2,585) $ (31,561)
Loss from
discontinued
operations, net 318 318 107
----------- ----------- ----------- -----------
(Loss) income from
continuing
operations (11,351) 9,084 (2,267) (31,454)
----------- ----------- ----------- -----------
Interest expense 44,585 9,672 54,257 54,716
Interest income (1,137) (221) (1,358) (699)
Income tax provision
(benefit) 3,812 3,812 (4,338)
Depreciation,
amortization and
accretion 84,235 49,026 133,261 81,971
Impairments, net
loss on sale of
long-lived assets,
restructuring and
merger related
expense (221) 1,735 1,514 2,777
Loss on retirement
of long-term
obligations 21,577 21,577 15,042
Minority interest in
net earnings of
subsidiaries 257 257 55
(Income) loss on
equity method
investments (4) (4) 1,098
Non-cash stock-based
compensation
expense 5,695 3,259 8,954
Other income (112) (3,617) (3,729) (670)
----------- ----------- ----------- -----------
Adjusted EBITDA $147,336 $ 68,938 $ 216,274 $ 118,498
=========== =========== =========== ===========
Corporate expenses 6,306 2,916 9,222 6,973
Services segment
overhead 1,053 1,053 770
Services segment
operating expenses 2,016 55 2,071 1,432
Services segment
revenue (4,097) (53) (4,150) (2,785)
----------- ----------- ----------- -----------
Rental and
Management
Segment Operating
Profit $152,614 $ 71,856 $ 224,470 $ 124,888
=========== =========== =========== ===========
Rental and management
segment overhead 10,466 5,280 15,746 11,955
----------- ----------- ----------- -----------
Rental and
Management Segment
Gross Margin $163,080 $ 77,136 $ 240,216 $ 136,843
=========== =========== =========== ===========
The calculation of Three Months Ended
Adjusted EBITDA March 31,
Margin is as follows: 2006
-----------------------------------
American SpectraSite Consolidated
Tower
Adjusted EBITDA $147,336 $ 68,938 $ 216,274
Divided by total
revenues 211,946 108,463 320,409
----------- ----------- -----------
Adjusted EBITDA
Margin 70% 64% 67%
=========== =========== ===========
The calculation of Three Months Ended
Free Cash Flow is as March 31,
follows: 2006
------------------------------------
American SpectraSite Consolidated
Tower
Cash provided by
operating activities $ 92,743 $ 58,953 $ 151,696
Payments for purchase
of property and
equipment and
construction
activities (21,444) (6,932) (28,376)
----------- ----------- -----------
Free Cash Flow $ 71,299 $ 52,021 $ 123,320
=========== =========== ===========
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