American Tower Corporation Reports Selected Second Quarter 2006 Financial 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. ): SECOND QUARTER 2006 HIGHLIGHTS --Rental and management segment revenue increased to $320.2 million --Rental and management segment gross margin increased to $240.6 million --Cash provided by operating activities increased to $141.2 million American Tower Corporation (NYSE:AMT) today reported selected financial results for the second quarter ended June June: see month. 30, 2006. Given the Company's ongoing internal review of its historical stock option granting practices, today's announcement of second quarter results includes selected financial results only. Additional information regarding the Company's stock option review is set forth below. 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, "Demand for tower space remains robust. On a pro-forma basis, adjusted for the impact of our merger with SpectraSite, our second quarter 2006 tower revenues grew 12% over the prior year. Leasing activity among the four national US carriers, complemented by regional and emerging carriers, broadcasters, and our international customers, enabled us to exceed the high end of our second quarter revenue guidance. Moreover, we have also raised our full year 2006 tower revenue and gross margin guidance based on our confidence in the sustainability of the current favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. leasing environment." "We also remain focused on continuously improving our operational execution across our industry leading tower portfolio. We continue to realize the benefits of our portfolio, through strong revenue growth and the 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. inherent in the economies derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from our scale. In addition we continue to enhance our working relationships with our major customers to maximize our share of new business opportunities as carriers expand their networks, further deploy 3G data capabilities, and develop their plans to utilize new spectrum being auctioned later this summer." Second Quarter 2006 Operating Highlights American Tower generated the following operating results for the quarter ended June 30, 2006 (unless otherwise indicated, all comparative information is compared against the quarter ended June 30, 2005): Total revenues increased 73% to $325.9 million and rental and management segment revenues increased 73% to $320.2 million, of which $111.2 million was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to SpectraSite. Rental and Management Segment Gross Margin increased 70% to $240.6 million, of which $77.5 million was attributable to SpectraSite. Services Segment revenue and Gross Margin increased to $5.7 million and $3.1 million, respectively. As discussed below under Non-GAAP and Defined Financial Measures, Segment Gross Margin reflects segment revenue less direct segment-level expenses and does not include selling, general, administrative and development expenses related to the segment. Total selling, general, administrative and development expense was $36.3 million for the quarter ended June 30, 2006. The Company's selling, general, administrative and development expense for the quarter includes estimated non-cash stock-based compensation expense of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $9.6 million, calculated based on historical assumptions regarding option values. This amount does not take into account any adjustments that may be required as a result of the ongoing stock option review. As discussed below, the Company may need to record additional non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for stock-based compensation expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc certain option grants. Such a non-cash charge could cause the Company's selling, general, administrative and development expense for the quarter to increase. Accordingly, this amount should be considered preliminary until the Company files its Form 10-Q Form 10-Q See 10-Q. for the second quarter ended June 30, 2006. Free Cash Flow was $112.5 million, of which $36.8 million was attributable to SpectraSite. Free Cash Flow was comprised of $141.2 million of cash provided by operating activities, less $28.7 million of payments for purchase of property and equipment and construction activities, including $15.4 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 57 towers and the installation of 3 in-building systems during the quarter. Please refer to Non-GAAP and Defined Financial Measures on page 4 for definitions of Rental and Management Segment Gross Margin, Services Segment Gross Margin and Free Cash Flow. For additional financial information, including reconciliations to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures, please refer to the supplemental schedules of selected financial information and 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 pages 6 and 7. Stock Option Matter Update and Expected 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. As previously announced, the Company's Board of Directors has appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. a special committee of independent directors to conduct a review of the Company's historical stock option granting practices and related accounting. The special committee is being assisted by independent legal counsel and forensic Belonging to courts of justice. forensic 1) adj. from Latin forensis for "belonging to the forum," ancient Rome's site for public debate, and currently meaning pertaining to the courts. auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together . On July July: see month. 28, 2006, the Company announced that the special committee had reached a preliminary conclusion that the actual measurement dates for financial accounting purposes of certain stock option grants likely differ from the recorded grant dates of such awards and that, as a result, the Company may need to record additional non-cash charges for stock-based compensation expense relating to these option grants. While the special committee has not completed its investigation and is continuing its review of these matters, the Company has determined that a restatement of its previously issued financial statements is likely. Accordingly, the Company's management, after consultation with the Company's independent registered public accounting firm, has concluded that the financial statements and the related independent auditors' reports contained in the Company's prior filings with the Securities and Exchange Commission should no longer be relied upon. As the stock option review is not yet complete, the Company has not yet determined the aggregate amount of additional non-cash stock-based compensation expense, nor has it determined the amount of such expense to be recorded in any specific prior period or in any future period. The Company has also not yet determined the impact of any related tax consequences. The Company does not expect the review to result in material changes to its historical revenues or non-option related 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. , nor would it have a material impact on the Company's cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . As a result, the Company is unable at this time to provide detailed GAAP or non-GAAP financial results for the quarter ended June 30, 2006. The Company believes that the selected financial results presented herein would not be affected by the results of the stock option review, except as noted above with respect to the Company's selling, general, administrative and development expense, which should be considered preliminary until the Company files its Form 10-Q for the quarter ended June 30, 2006. The Company intends to report its complete financial results and file its Form 10-Q for the quarter ended June 30, 2006 as soon as practicable practicable adj. when something can be done or performed. once conclusions are reached regarding the impact of the stock option review on the Company's financial statements. At this time, the Company does not expect that such conclusions will be reached until after the date the Form 10-Q is required to be filed. Accordingly, the Company does not expect that it will be able to timely file its Form 10-Q for the quarter ended June 30, 2006. Assuming conclusions are reached in a timely manner, the Company expects that it will prepare and file the Form 10-Q and the necessary restated reports with the Securities and Exchange Commission in the next four to six weeks. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program and Financing Highlights As previously announced, the Company has temporarily suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. its stock repurchase program while the review of its stock option granting practices is ongoing. In November November: see month. 2005, the Company announced that its Board of Directors had approved the 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. of up to $750 million of the Company's Class A common stock during the period November 2005 through December December: see month. 2006. Prior to the suspension of the stock repurchase program, the Company had repurchased a total of 11.8 million shares of its Class A common stock for approximately $358.4 million, including approximately 3.5 million shares for approximately $116.3 million during the quarter ended June 30, 2006. During the quarter ended June 30, 2006, the Company issued an aggregate of 4.7 million shares of its Class A common stock as a result of warrant exercises. A summary of stock repurchase and issuance activity that occurred during the quarter ended June 30, 2006 is included on page 7. During the quarter ended June 30, 2006, holders of approximately $22.6 million principal amount of the Company's 3.25% Convertible Notes due 2010 converted their notes into 1.8 million shares of the Company's Class A common stock. In connection with the conversion, the Company paid the noteholders approximately $1.7 million, calculated based on accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid interest and the discounted value of future interest payments on the notes. In addition, the Company repurchased a total of $36.9 million principal amount of its 7.25% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes due 2011 for approximately $38.0 million. Subsequent to the end of the quarter, the Company repurchased an additional $6.9 million principal amount of its 7.25% Notes for approximately $7.1 million and $18.5 principal amount million of its 5.0% Convertible Notes due 2007 for approximately $18.4 million. Third Quarter and Full Year 2006 Outlook The following estimates are based on a number of assumptions that management believes to be reasonable, and reflect the Company's expectations as of August 7, 2006. Please refer to the cautionary language regarding "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements included in this press release when considering this information. The Company undertakes no obligation to update this information.
($ in millions) Third Quarter Full Year 2006
2006
-------------- ------------------
Rental and management segment
revenue $324 to $327 $1,285 to $1,295
Rental and management segment gross
margin (1) 243 to 245 966 to 978
Services segment revenue 3 to 4 15 to 20
Services segment gross margin (1) 2 to 2 8 to 10
Interest expense 54 to 54 220 to 215
Payments for purchase of property
and equipment and construction
activities (2) 32 to 37 120 to 130
(1) Segment gross margin reflects segment revenue less direct
segment-level expenses only and does not include depreciation,
amortization and accretion; selling, general, administrative and
development expense; and impairments, net loss on sale of
long-lived assets, restructuring and merger related expense.
Rental and management segment gross margin includes interest
income, TV Azteca, net. See Non-GAAP and Defined Financial
Measures below.
(2) The Company's full year 2006 outlook for capital expenditures
includes $65 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.
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 second quarter results for 2006 and the Company's outlook for the third 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 3673222. A replay of the call will be available from 9:30 a.m. EST August 7, 2006 until 11:59 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. August 14, 2006. The replay dial-in numbers are US/Canada: (800) 642-1687 and International: (706) 645-9291, access code 3673222. 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, Services Segment Gross 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, 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 Services Segment Gross Margin 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, rental and management segment overhead, rental and management segment operating expenses, and rental and management segment revenue. 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. Notwithstanding the foregoing, the Company's measures of Rental and Management Segment Gross Margin, Services Segment Gross Margin and Free Cash Flow may not be comparable to similarly titled measures used by other companies. 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, statements regarding our third quarter and full year 2006 Outlook, the review of our historical stock option granting practices, the likely restatement of our previously issued financial statements, the filing of our Form 10-Q for the quarter ended June 30, 2006, our 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) the final results of the review of our historical stock option granting practices; (2) the extent of any necessary corrections to our determinations of non-cash stock-based compensation expense as a result of the stock option review and the impact on our financial statements of any such corrections; (3) the costs associated with the review of our historical stock option granting practices and the related inquiries, investigations and legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ; (4) a decrease in demand for tower space would materially and adversely affect our operating results and we cannot control that demand; (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, revenue and ability to generate positive cash flows could be adversely affected; (6) substantial leverage and debt service obligations may adversely affect us; (7) 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; (8) 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; (9) our foreign operations are subject to economic, political and other risks that could adversely affect our revenues or financial position; (10) a substantial portion of our revenues is derived from a small number of customers; (11) 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 (12) new technologies could make our tower leasing business less desirable to potential tenants and result in decreasing revenues; (13) we could have liability under environmental laws; (14) 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; (15) increasing competition in the tower industry may create pricing pressures that may adversely affect us; (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 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; (18) our towers may be affected by natural disasters and other unforeseen damage for which our insurance may not provide adequate coverage; (19) 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 (20) 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-Q for the quarter ended March 31, 2006 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 SELECTED FINANCIAL INFORMATION (1)
($ in thousands)
June 30, 2006
------------------------------------
American
SELECTED BALANCE SHEET DETAIL: Tower SpectraSite Consolidated
----------- ----------- ------------
Long-term obligations summary,
including current portion
Credit Facilities $1,000,000 $725,000 $1,725,000
7.250% Senior Subordinated
Notes, due 2011 363,073 363,073
7.500% Senior Notes, due 2012 225,000 225,000
7.125% Senior Notes, due 2012 501,657 501,657
5.000% Convertible Notes, due
2010 275,688 275,688
3.250% Convertible Notes, due
2010 107,869 107,869
3.000% Convertible Notes, due
2012 344,455 344,455
Other debt 59,697 289 59,986
----------- ----------- ------------
Total debt $2,877,439 $725,289 $3,602,728
Cash and cash equivalents 45,502 44,952 90,454
----------- ----------- ------------
Net debt (Total debt less
Cash and cash equivalents) $2,831,937 $680,337 $3,512,274
=========== =========== ============
Three Months Ended June 30,
-----------------------------------------------
2006 2005
---------------------------------- ------------
SELECTED OPERATING American
RESULTS: Tower SpectraSite Consolidated Consolidated
--------- ----------- ------------ ------------
Rental and
management segment
revenue $208,923 $111,246 $320,169 $184,609
Interest income, TV
Azteca, net 3,584 3,584 3,584
Rental and
management segment
expense (2) (49,391) (33,737) (83,128) (46,599)
--------- ----------- ------------ ------------
Rental and
management segment
gross margin (3) $163,116 $77,509 $240,625 $141,594
========= =========== ============ ============
Network development
services segment
revenue $5,599 $95 $5,694 $3,451
Network development
services segment
expense (2) (2,521) (88) (2,609) (2,090)
--------- ----------- ------------ ------------
Network development
services segment
gross margin (3) $3,078 $7 $3,085 $1,361
========= =========== ============ ============
Selling, general, administrative and
development expense (including non-cash
stock based compensation expense of
$9,556) (4) $36,303 $20,473
Depreciation, amortization and accretion $132,811 $84,784
Three Months Ended June 30, 2006
---------------------------------
American
SELECTED INTEREST EXPENSE DETAIL: Tower SpectraSite Consolidated
-------- ----------- ------------
Long-term obligations summary,
including current portion
Credit Facilities $14,393 $10,371 $24,764
7.250% Senior Subordinated Notes,
due 2011 7,078 7,078
7.500% Senior Notes, due 2012 4,219 4,219
7.125% Senior Notes, due 2012 8,856 8,856
5.000% Convertible Notes, due
2010 3,451 3,451
3.250% Convertible Notes, due
2010 754 754
3.000% Convertible Notes, due
2012 2,609 2,609
Other interest expense, including
amortization of deferred
financing fees 2,706 (747) 1,959
-------- ----------- ------------
Total Interest Expense $44,066 $9,624 $53,690
======== =========== ============
Three Months Ended June 30,
----------------------------------------------
2006 2005
--------------------------------- ------------
SELECTED CASH FLOW American
DETAIL: Tower SpectraSite Consolidated Consolidated
-------- ----------- ------------ ------------
Cash provided by
operating
activities $97,442 $43,717 $141,159 $72,454
Payments for
purchase of
property and
equipment and
construction
activities:
Discretionary 12,586 2,836 15,422 11,112
Improvements
/Augmentation 7,936 4,081 12,017 8,659
Corporate 1,229 1,229 874
-------- ----------- ------------ ------------
Total $21,751 $6,917 $28,668 $20,645
======== =========== ============ ============
Cash paid for income taxes $6,302 $8,495
Cash paid for interest $64,243 $52,915
(1) The selected financial information presented herein is unaudited
and does not reflect complete GAAP financial statements. As
discussed above, the Company's review of its historical stock
option granting practices is not yet complete. Based on
preliminary conclusions, the Company has determined that it may
need to record additional non-cash charges for stock-based
compensation expense relating to certain option grants. The
Company has not yet determined the amount of any such compensation
charges or the related tax impact. Accordingly, the Company is
unable at this time to provide detailed GAAP or non-GAAP financial
results for the quarter ended June 30, 2006. Except as noted above
with respect to selling, general, administrative and development
expense, the Company believes that the selected financial results
presented herein would not be affected by the results of the stock
option review.
(2) Includes direct segment-level expenses only and does not include
depreciation, amortization and accretion; selling, general,
administrative and development expense; and impairments, net loss
on sale of long-lived assets, restructuring and merger related
expense.
(3) Segment gross margin reflects segment revenue less direct
segment-level expenses only and does not include depreciation,
amortization and accretion; selling, general, administrative and
development expense; and impairments, net loss on sale of
long-lived assets, restructuring and merger related expense.
Rental and management segment gross margin includes interest
income, TV Azteca, net. See Non-GAAP and Defined Financial
Measures above.
(4) Reflects estimated non-cash stock-based compensation expense
calculated based on historical assumptions regarding option
values, which does not take into account any adjustments that may
be required as a result of the ongoing stock option review.
UNAUDITED SUPPLEMENTAL INFORMATION
SHARE COUNT ROLLFORWARD (in millions):
Total shares outstanding, as of March 31, 2006 420
Shares issued - employee stock option exercises 2
Shares issued - warrant exercises 5
Shares issued - convertible note exercises 2
Shares repurchased (4)
-----------
Total shares outstanding, as of June 30, 2006 425
===========
SELECTED PORTFOLIO DETAIL - OWNED SITES:
Three Months Ended In-
June 30, 2006 Wireless Broadcast building Total
-------- --------- --------- -------
Beginning Balance, April 1,
2006 21,694 407 121 22,222
New Construction 57 3 60
Acquisitions 20 20
Reductions (14) (14)
-------- --------- --------- -------
Ending Balance, June 30, 2006 21,757 407 124 22,288
======== ========= ========= =======
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