American Tower Corporation Reports Fourth Quarter and Full Year 2004 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. ): FULL YEAR 2004 HIGHLIGHTS --Rental and Management segment revenues increased 10% to $684.4 million --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 16% to $461.4 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 17% to $437.4 million --Cash provided by operating activities increased 39% to $216.7 million American Tower Corporation (NYSE: AMT) today reported financial results for the fourth quarter and full year ended December December: see month. 31, 2004. The financial results discussed in this press release reflect the impact of the Company's previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of its historical financial statements for periods ending on or prior to September September: see month. 30, 2004, as discussed in more detail below. Total revenues increased 11% to $184.7 million and 12% to $706.7 million, respectively, for the fourth quarter and full year ended December 31, 2004, as compared to the same periods in 2003. 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 revenue increased 9% to $177.3 million and 10% to $684.4 million, respectively, for the fourth quarter and full year ended December 31, 2004, as compared to the same periods in 2003. Rental and management segment operating profit increased 13% to $120.6 million and 16% to $461.4 million, respectively, for the fourth quarter and full year ended December 31, 2004, as compared to the same periods in 2003. Adjusted EBITDA (defined 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 and 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 and 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). expense, 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) increased 13% to $114.1 million and 17% to $437.4 million, respectively, for the fourth quarter and full year ended December 31, 2004, as compared to the same periods in 2003. Due to the previously disclosed correction CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. of the Company's accounting practices for ground leases, the rental and management segment operating profit and Adjusted EBITDA include additional non-cash straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. rent expense of $2.6 million and $11.4 million for the fourth quarter and full year ended December 31, 2004, and $3.2 million and $14.0 million for the fourth quarter and full year ended December 31, 2003. Income from operations increased to $21.4 million for the fourth quarter of 2004, as compared to $3.4 million for the same period in 2003. 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 was $68.2 million, or $(0.30) per share, and net loss was $74.0 million, or $(0.32) per share, for the fourth quarter of 2004. Loss from continuing operations includes a $50.6 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loss on retirement of 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. obligations related to the refinancing Refinancing An extension and/or increase in amount of existing debt. of certain of the Company's outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . For the full year ended December 31, 2004, income from operations increased to $69.8 million, as compared to a loss of $2.6 million for the same period in 2003. Loss from continuing operations for the full year ended December 31, 2004 was $239.2 million, or $(1.07) per share, and net loss was $247.6 million, or $(1.10) per share, and includes a $138.0 million pre-tax loss on retirement of long-term obligations. Net cash provided by operating activities increased 39% to $216.7 million, and payments for purchases of property and equipment and construction activities decreased 32% to $42.2 million, for the fiscal year ended December 31, 2004, as compared to the same period in 2003. 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 Chairman and Chief Executive Officer, stated "We fully expect to continue experiencing robust demand for tower space in 2005. Subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. growth remains a key driver of tower lease-up demand and we anticipate that new marketing and branding initiatives being launched or expanded by wireless carriers and MVNOs will attract major affinity groups A special interest group. This is a marketing term for a group of people with similar interests. , creating momentum for subscriber growth. In addition, our carrier customers continue to view network quality as a critical competitive advantage necessary for attracting new customers and limiting churn churn: see butter. . Recent public announcements by wireless carriers confirm their commitment to continue investing the capital necessary to develop their wireless networks, even in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of consolidation in the sector. "At American Tower, we are continuing our focus on our core leasing business. As wireless subscribers and minutes-of-use expand and carriers invest in their networks, we maintain our commitment to meeting their infrastructure needs through operational improvement initiatives and development of our talent. We are dedicated to supporting our customers' need for speed to market by delivering faster and higher quality service, while efficiently investing in our business systems and the people who provide it. "We continue to have confidence in delivering another year of strong results in 2005, based on our expectation of roughly similar levels of tower demand as last year, our significant operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. through rigorous cost control, and our improved financial position." Financing Highlights The Company continued to thoughtfully thought·ful adj. 1. Engrossed in thought; contemplative. 2. Exhibiting or characterized by careful thought: a thoughtful essay. 3. access the capital markets and utilize its free cash flow to strengthen its financial position. As previously announced, the Company issued $300 million of 7.125% senior notes due 2012 in October October: see month. of 2004 and an additional $200 million of these notes in December of 2004. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $30 million of cash on hand were used to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. or redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. $494 million principal amount of 9.375% senior notes due 2009, including $361 million principal amount in the fourth quarter of 2004 and $133 million principal amount in January January: see month. of 2005. In addition, the Company continued to use its free cash flow to repurchase its 12.25% senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. discount notes due 2008. The Company repurchased a total of $163 million face amount ($98 million of accreted value accreted value The current value of an original-issue discount bond, taking into account imputed interest that has accumulated. , net of $7 million fair value allocated to the warrants) of its 12.25% senior subordinated discount notes due 2008 for an aggregate purchase price of $123 million in cash, $126 million face amount of which were repurchased in the fourth quarter of 2004 and $37 million face amount of which were repurchased subsequent to the end of the fourth quarter of 2004. The Company reduced its Net Leverage Ratio (defined as total debt less cash and cash equivalents and restricted cash and investments on hand divided by fourth quarter annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. Adjusted EBITDA) to 6.7x as of December 31, 2004. 2005 Quarterly and Full Year Outlook The following estimates are based on a number of assumptions that management believes to be reasonable, and reflect the Company's expectations as of March 30, 2005. Please refer to the cautionary language regarding "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements included in this press release when considering this information. The Company undertakes no obligation to update this information.
($ millions) First Quarter Full Year 2005
2005
-------------- --------------
Rental and management segment revenue $178 to $180 $729 to $744
Rental and management segment operating
profit (1) 122 to 124 504 to 515
Services segment revenue 3 to 3 12 to 15
Services segment operating profit 1 to 1 4 to 4
Total revenue 181 to 183 741 to 759
Total segment operating profit 123 to 125 508 to 519
Corporate SG&A 7 to 6 26 to 27
Adjusted EBITDA 116 to 119 482 to 492
Non-cash interest expense (2) 14 to 14 53 to 53
Cash interest expense 41 to 40 172 to 162
Loss from continuing operations (3) (34)to (32) (84)to (68)
Basic and diluted net loss per common
share from continuing operations (0.15)to(0.14) (0.36)to(0.30)
Payments for purchase of property and
equipment and construction activities
(4) 12 to 14 55 to 65
(1) Rental and management segment operating profit includes $3 million and $10 million of non-cash straight-line rent expense for the first quarter and full year 2005, respectively. (2) Non-cash interest expense includes the accretion from the Company's 12.25% senior subordinated discount notes and the amortization of deferred financing fees and warrant discount. (3) The loss from continuing operations includes a $15 million pre-tax loss from retirement of long-term obligations as a result of our debt repurchases through March 30, 2005. (4) The Company's outlook for capital expenditures is $55 million to $65 million, including $30 million to $35 million for the construction of approximately 125-150 new wireless towers, and approximately $25 million to $30 million for tower improvements and augmentation AUGMENTATION, old English law. The name of a court erected by Henry VIII., which was invested with the power of determining suits and controversies relating to monasteries and abbey lands. and corporate capital expenditures. Lease-Related Accounting Adjustments and Restatement As discussed in the Company's current report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed with the Securities and Exchange Commission on February February: see month. 28, 2005, in February 2005, the Company undertook a review of its lease accounting practices as a result of changes in lease accounting announced by other public companies in January and February of 2005 and guidance provided by the Securities and Exchange Commission in its February 7, 2005 letter to the accounting industry. As a result of this review, the Company determined that it should change the periods used to calculate depreciation and amortization expense and straight-line rent expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc certain of its tower assets and underlying ground leases. Accordingly, the Company restated its historical financial statements and, earlier today, filed with the Securities and Exchange Commission an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. annual report on Form 10-K/A for the fiscal year ended December 31, 2003 and amended quarterly reports on Form 10-Q/A for the fiscal quarters ended March 31, June June: see month. 30 and September 30, 2004, to reflect the restatement. The primary effect of this accounting correction was to accelerate to earlier periods non-cash rent expense and depreciation and amortization expense with respect to certain of the Company's tower sites, resulting in an increase in non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) compared to what was previously reported. The restatement did not affect the Company's historical or future cash flows provided by operating activities. Conference Call Information American Tower will host a conference call today at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to discuss quarterly and full year results for 2004 and the Company's outlook for full year 2005. 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, International: (706) 645-9644 access code 5049292. A replay of the call will be available from 11:00 a.m. EST March 30, 2005 until 11:59 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. April 6, 2005. The replay dial-in numbers are US/Canada: (800) 642-1687 and international: (706) 645-9291, access code 5049292. 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 web site, http://investor.americantower.com. A replay of the call will be available on the web site shortly after the conclusion of the call. 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 North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . American Tower operates approximately 15,000 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. , including approximately 300 broadcast tower sites. For more information about American Tower Corporation, please visit our website www.americantower.com. Non-GAAP 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) provided throughout this press release, we have presented the following non-GAAP financial measures: Adjusted EBITDA and Net Leverage Ratio. 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, our measures of Adjusted EBITDA and Net Leverage Ratio may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included on page 10 of this press release. Our results under GAAP are set forth in the financial statements attached as pages 6 to 8 of this press release. This press release contains "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. " 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, our first quarter and full year 2005 Outlook 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; (2) our substantial leverage and debt service obligations may adversely affect our operating results; (3) 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 loan agreement and indentures could adversely affect our business by further limiting our flexibility; (4) our participation or inability to participate in tower industry consolidation could involve certain risks; (5) 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, our revenue and our ability to generate positive cash flows could be adversely affected; (6) due to the long-term expectations of revenue from tenant leases, we are dependent on 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 our tenants; (7) our foreign operations are subject to economic, political and other risks; (8) 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; (9) the 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; (10) new technologies could make our tower antenna leasing services less desirable to potential tenants and result in decreasing revenues; (11) we could have liability under environmental laws; (12) 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; (13) increasing competition in the tower industry may create pricing pressures; (14) if we are unable to protect our rights to the land under our towers, it could adversely affect our business; (15) 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 ; and (16) 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 under the caption entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Factors That May Affect Future Results" in our Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2004, which we incorporate herein by reference. 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)
December December
31, 31,
2004 2003
----------- -----------
ASSETS (As
restated)
Current Assets:
Cash and cash equivalents $215,557 $105,465
Restricted cash and investments - 170,036
Accounts receivable, net 38,634 57,735
Other current assets 51,457 65,766
Assets held for sale 3,389 17,651
----------- -----------
Total current assets 309,037 416,653
----------- -----------
Property and equipment, net 2,273,356 2,483,324
Goodwill and other intangible assets, net 1,577,986 1,612,432
Deferred income taxes 633,814 502,737
Notes receivable and other long-term assets 291,779 275,508
----------- -----------
Total $5,085,972 $5,290,654
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $121,672 $107,557
Accrued interest 39,466 59,734
Current portion of long-term obligations 138,386 76,627
Other current liabilities 32,681 41,449
Liabilities held for sale - 9,910
----------- -----------
Total current liabilities 332,205 295,277
----------- -----------
Long-term obligations 3,155,228 3,283,104
Other long-term liabilities 121,505 83,496
----------- -----------
Total liabilities 3,608,938 3,661,877
----------- -----------
Minority interest in subsidiaries 6,081 18,599
----------- -----------
STOCKHOLDERS' EQUITY
Class A Common Stock 2,297 2,119
Class B Common Stock - 70
Class C Common Stock - 12
Additional paid-in capital 4,012,425 3,910,879
Accumulated deficit (2,539,403) (2,291,816)
Note receivable - (6,720)
Treasury stock (4,366) (4,366)
----------- -----------
Total stockholders' equity 1,470,953 1,610,178
----------- -----------
Total $5,085,972 $5,290,654
=========== ===========
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Year Ended
December December
31, 31,
-------------------- ---------------------
2004 2003 2004 2003
--------- ---------- ---------- ----------
(As (As
restated) restated)
REVENUES:
Rental and management $177,313 $163,126 $684,422 $619,697
Network development
services 7,383 3,021 22,238 12,796
--------- ---------- ---------- ----------
Total operating
revenues 184,696 166,147 706,660 632,493
--------- ---------- ---------- ----------
OPERATING EXPENSES:
Rental and management 60,278 60,253 237,312 236,680
Network development
services 6,761 1,959 18,801 9,493
Depreciation, amortization
and accretion 81,071 81,423 329,449 330,414
Corporate general,
administrative and
development expense 7,077 6,761 27,468 26,867
Impairments, net loss on
sale of long-lived assets
and restructuring expense 8,072 12,312 23,876 31,656
--------- ---------- ---------- ----------
Total operating
expenses 163,259 162,708 636,906 635,110
--------- ---------- ---------- ----------
OPERATING INCOME (LOSS)
FROM CONTINUING OPERATIONS 21,437 3,439 69,754 (2,617)
--------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest income, TV
Azteca, net 3,540 3,669 14,316 14,222
Interest income 1,442 1,222 4,844 5,255
Interest expense (59,428) (68,006) (262,237) (279,783)
Loss on retirement of
long-term obligations (50,624) (5,129) (138,016) (46,197)
Other expense (763) (1,382) (2,798) (8,598)
--------- ---------- ---------- ----------
Total other expense (105,833) (69,626) (383,891) (315,101)
--------- ---------- ---------- ----------
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES,
MINORITY INTEREST AND
EQUITY METHOD INVESTMENTS (84,396) (66,187) (314,137) (317,718)
--------- ---------- ---------- ----------
Income tax benefit 17,492 18,758 80,176 77,796
Minority interest in net
earnings of subsidiaries (182) (1,433) (2,366) (3,703)
Loss on equity method
investments (1,064) (1,387) (2,915) (21,221)
--------- ---------- ---------- ----------
LOSS FROM CONTINUING
OPERATIONS (68,150) (50,249) (239,242) (264,846)
--------- ---------- ---------- ----------
LOSS FROM DISCONTINUED
OPERATIONS, NET (5,880) (6,643) (8,345) (60,475)
--------- ---------- ---------- ----------
NET LOSS $(74,030) $(56,892) $(247,587) $(325,321)
========= ========== ========== ==========
BASIC AND DILUTED NET LOSS PER
COMMON SHARE AMOUNTS
Loss from continuing
operations $(0.30) $(0.23) $(1.07) $(1.27)
Loss from discontinued
operations (0.02) (0.03) (0.03) (0.29)
--------- ---------- ---------- ----------
NET LOSS PER COMMON SHARE $(0.32) $(0.26) $(1.10) $(1.56)
========= ========== ========== ==========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 228,469 219,662 224,336 208,098
========= ========== ========== ==========
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
December 31,
-----------------------
2004 2003
----------- -----------
(As
restated)
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net loss $(247,587) $(325,321)
Non-cash items reflected in statements of
operations 498,835 503,021
Increase in assets (17,330) (15,557)
Decrease in liabilities (17,218) (5,757)
----------- -----------
Cash provided by operating activities 216,700 156,386
----------- -----------
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Payments for purchase of property and
equipment and construction activities (42,181) (61,608)
Payments for acquisitions, net of cash
required (33,403) (95,077)
Payment for acquisition of Mexico minority
interest (3,947) -
Proceeds from notes receivable, net - 6,946
Proceeds from sale of businesses and other
long-term assets 31,987 110,753
Distributions to minority interest (456) (671)
Deposits and investments 2,784 (16,353)
----------- -----------
Cash used for investing activities (45,216) (56,010)
----------- -----------
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Proceeds from issuance of debt securities
and notes payable 1,072,500 1,032,384
Net proceeds from equity offering, stock
options and other 40,556 126,847
Borrowings under credit facility 700,000 -
Repayment of notes payable, credit
facility and capital leases (2,003,401) (1,071,956)
Restricted cash 170,036 (170,036)
Deferred financing costs and other
financing activities (41,083) (39,442)
----------- -----------
Cash used for financing activities (61,392) (122,203)
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 110,092 (21,827)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 105,465 127,292
----------- -----------
CASH AND CASH EQUIVALENTS, END OF YEAR $215,557 $105,465
=========== ===========
CASH PAID FOR INCOME TAXES $4,257 $2,609
=========== ===========
CASH PAID FOR INTEREST $209,874 $223,263
=========== ===========
UNAUDITED SUPPLEMENTAL
INFORMATION
SELECTED CAPITAL EXPENDITURE DETAIL Three
(in millions) Months Year
Ended Ended
December December
31, 2004 31, 2004
---------- --------
CAPITAL EXPENDITURES (PAYMENTS FOR
PURCHASE OF PROPERTY AND EQUIPMENT AND
CONSTRUCTION ACTIVITIES)
Discretionary $4.9 $13.5
Improvements/Augumentation 7.6 24.9
Corporate 1.1 3.8
---------- --------
Total $13.6 $42.2
---------- --------
SELECTED INTEREST EXPENSE DETAIL Three Year
(in millions) Months Ended
Ended December
December 31,
31, 2004 2004
---------- --------
Credit facility $8 $29
12.25% Senior subordinated
discount notes due 2008 10 51
9.375% Senior notes due 2009 10 79
5.0% Convertible notes due 2010 3 15
3.25% Convertible notes due 2010 2 7
7.25% Senior subordinated notes due 2011 7 29
7.50% Senior notes due 2012 4 15
3.00% Convertible notes due 2012 3 4
7.125% Senior notes due 2012 6 6
Deferred financing amortization, warrant
discount and other discount amortization 5 22
Other 1 5
---------- --------
Total interest expense $59 $262
---------- --------
SELECTED BALANCE SHEET DETAIL
(in millions)
LONG TERM OBLIGATIONS BREAKOUT, INCLUDING
CURRENT PORTION
December
31, 2004
----------
Term loan A $300
Term loan B 398
12.25% Senior subordinated
discount notes due 2008 304
9.375% Senior notes due 2009 275
5.0% Convertible notes due 2010 276
3.25% Convertible notes due 2010 210
7.25% Senior subordinated notes due 2011 400
7.50% Senior notes due 2012 225
7.125% Senior notes due 2012 502
3.00% Convertible notes due 2012 344
Other debt 60
----------
Total debt 3,294
Cash & cash equivalents 216
----------
Net debt (Total debt less
total cash and cash equivalents) $3,078
==========
SELECTED SHARE DETAIL
December 31, 2004
-----------------
TOTAL SHARES OUTSTANDING
(in millions) 229.6
=======
SELECTED TOWER PORTFOLIO DETAIL
Three Months Ended
December 31, 2004
ACTIVE TOWER COUNTS Owned Broadcast Managed or Total
Wireless Towers Lease/
Towers Sublease
--------- -------- ---------- --------
Beginning Balance, 10/1/04 13,698 327 715 14,740
New Construction 21 - - 21
Acquisitions 27 - - 27
Reductions (5) - (5) (10)
------- ---------- -------- -------
Ending Balance, 12/31/04 13,741 327 710 14,778
======= ========== ======== ========
UNAUDITED
RECONCILIATIONS
TO GAAP MEASURES
Fourth Quarter and Full Year
2004 and 2003:
Adjusted EBITDA
The reconciliation Three
of net loss to Months Year
adjusted Ended Ended
EBITDA is as December December
follows: 31, 31,
------------------------- -------------------------
(in thousands
of dollars) 2004 2003 2004 2003
---------- ---------- ---------- ----------
(As (As
restated) restated)
Net loss $(74,030) $(56,892) $(247,587) $(325,321)
Loss from
discontinued
operations,
net 5,880 6,643 8,345 60,475
---------- ---------- ---------- ----------
Loss from
continuing
operations (68,150) (50,249) (239,242) (264,846)
---------- ---------- ---------- ----------
Interest
expense 59,428 68,006 262,237 279,783
Interest income (1,442) (1,222) (4,844) (5,255)
Income tax
benefit (17,492) (18,758) (80,176) (77,796)
Depreciation,
amortization
and accretion 81,071 81,423 329,449 330,414
Impairments,
net loss on
sale of long-
lived assets
and
restructuring
expense 8,072 12,312 23,876 31,656
Loss on
retirement of
long-term
obligations 50,624 5,129 138,016 46,197
Minority
interest in
net earnings
of subsidiaries 182 1,433 2,366 3,703
Loss on equity
method
investments 1,064 1,387 2,915 21,221
Other expense 763 1,382 2,798 8,598
---------- ---------- ---------- ----------
Adjusted EBITDA $114,120 $100,843 $437,395 $373,675
========== ========== ========== ==========
Fourth Quarter 2004 and 2003: Net Leverage Ratio The calculation
of net leverage for the end of the fourth quarter 2004 and 2003 is as
follows:
December 31,
-----------------------------
(in thousands
of dollars) 2004 2003
---------- ----------
(As
restated)
Cash and cash
equivalents $215,557 $105,465
Restricted cash
and
investments - 170,036
---------- ----------
Total cash and
cash
equivalents 215,557 275,501
---------- ----------
Current portion
of long-term
obligations 138,386 76,627
Long-term
obligations 3,155,228 3,283,104
---------- ----------
Total debt 3,293,614 3,359,731
---------- ----------
Net debt (Total
debt less total
cash and cash
equivalents) 3,078,057 3,084,230
Respective 4Q
Adjusted
EBITDA 114,120 100,843
x 4 x 4
---------- ----------
Respective 4Q
Annualized
Adjusted
EBITDA $456,480 $403,372
---------- ----------
Net Leverage 6.7x 7.6x
Ratio (Net ========== ==========
debt divided
by respective
4Q annualized
Adjusted
EBITDA)
Reconciliation
of 2005
Outlook to
GAAP Measures
The reconciliation
of loss from
continuing
operations to
Adjusted First Full
EBITDA is as Quarter Year
follows: 2005 2005
----------------------- -----------------------
(in millions of Low High Low High
dollars)
---------- ---------- ---------- ----------
Loss from
continuing
operations
(1)(2) $(34) to $(32) $(84) to $(68)
Total interest
expense 55 to 54 225 to 215
Other, including
interest income,
loss on retirement
of long-term
obligations, loss
on equity method
investments, other
expense, depreciation,
amortization and
accretion, minority
interest in net earnings
of subsidiaries,
and income tax
benefit (2) 95 to 97 341 to 345
---------- ---------- ---------- ---------
Adjusted EBITDA $116 $119 $482 $492
========== ========== ========== =========
(1) The Company has not reconciled our Adjusted EBITDA to net loss
because we do not provide guidance for loss from discontinued
operations, net, which is the reconciling item between loss from
continuing operations and net loss.
(2) The Company's first quarter loss from continuing operations
includes $15 million pre-tax loss from retirement of long-term
obligations as a result of our debt repurchases as of March 30, 2005.
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