American Tower Corporation Reports Strong First Quarter Results and Improved Revenue Outlook for the Year.Business/Technology Editors BOSTON--(BUSINESS WIRE)--May 2, 2001 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. ) today reported significant increases in revenues and 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 before development expense ("operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. before depreciation and amortization and development 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") for the quarter ended March 31, 2001 as compared to the same period in the prior year. For the three months ended March 31, 2001, revenues increased to $262.5 million from $115.5 million for the three months ended March 31, 2000. EBITDA excluding development expense increased to $62.5 million for the three months ended March 31, 2001 from $34.7 million for the same period in 2000. Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Dodge, 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 are pleased with our first quarter performance and our ability to generate rental and services revenue above our expectations for the quarter despite economic 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 which are challenging to at least a portion of our customer base. We believe this speaks to the fundamental strength of the wireless sector and its main participants. We are specifically encouraged that our year to date tower rental sales performance is virtually on track with last year's despite our increasingly selective approach to new lease applications. "With an eye toward better tower inventory management and 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. profitability, we continue to focus our sales efforts on customers which we believe have superior long-term prospects. At the same time, we are continuing to increase our reserve for doubtful accounts, which is affecting our margins, but which we believe appropriately reflects the risks inherent in certain customer categories. "We are increasing our tower rental revenue outlook for the year. We expect to perform to this level through focused selling and by accelerating the closing of the ALLTEL ALLTEL Corporation (NYSE: AT) is an American telecommunications company with headquarters in Little Rock, Arkansas. Alltel provides wireless services to residential and business customers in 35 states. portfolio. "As we have stated previously, we plan to continue to grow our asset base through new construction and acquisitions, perhaps modifying the mix to take advantage of current positive trends in acquisition pricing. We are particularly excited about the quality of certain international opportunities, and we now foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. the development of international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. with greater scale than previously anticipated, though still within the framework of our existing capital resources. In anticipation of this enhanced international effort, we are also adjusting our guidance to increase 2001 development expense. The payoff, however, could be very substantial." American Tower will host a conference call today at 11:00 a.m. Eastern to discuss quarterly results and the Company's outlook for quarterly 2001 and fiscal year 2001. The call will be hosted by Joe Winn, Chief Financial Officer, who will be joined by Steve Dodge, Chief Executive Officer, and other executive officers. The dial-in numbers are US: 877-209-9920, international: 612-332-1210, no access codes required. A replay of the call will be available from 2:30 p.m. Eastern Wednesday Wednesday: see week. , May 2, 2001 until 11:59 p.m. Eastern Wednesday, May 9, 2001. The replay dial-in numbers are US: 800-475-6701, and international: 320-365-3844, access code 582261. American Tower will also sponsor a live simulcast of the call on its web site at http://investor.americantower.com. A replay of the call on the web site will be available shortly after the end 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. . Giving effect to pending transactions, American Tower operates approximately 13,900 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 Canada, including approximately 300 broadcast tower sites. Of the 13,900 sites, approximately 12,900 are owned or leased towers and approximately 1,000 are managed and lease/sublease sites. Based in Boston, American Tower has regional hub offices in Boston, Atlanta, Chicago, Houston, San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi . For more information about American Tower Corporation and its subsidiary Verestar, Inc., please visit our web sites www.americantower.com and www.verestar.com. This press release contains "forward looking statements" relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc projections, plans, objectives, future events or performance and underlying assumptions and other statements which are not statements of historical fact. 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. include the information regarding our outlook for the results of operations for 2001. These forward looking statements are subject to important factors that could cause actual results to differ materially from those indicated in our forward looking statements, including: (i) a decrease in demand for tower space would materially and adversely affect our operating results and we cannot control that demand; (ii) our substantial leverage and debt service obligations may adversely affect our operating results and our ability to make payments on our 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. ; (iii) 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 our senior notes could adversely affect our business by limiting flexibility; (iv) build-to-suit construction projects and major acquisitions from wireless service providers increase our dependence on a limited number of customers, the loss of which could materially decrease revenue, and may also involve less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms; (vii) if we cannot successfully integrate acquired sites or businesses or mange mange (mānj), contagious skin disease of domestic and wild animals. The several types of mange, including follicular and sarcoptic mange, are caused by various minute parasitic mites that burrow into skin, hair follicles, or sweat glands. our operations as we grow, our business will be adversely affected and our growth may decline; (viii) increasing competition in the satellite and fiber network access services market may slow Verestar's growth and adversely affect its business; (ix) expanding operations into foreign countries could lead to expropriations, government regulations, funds inaccessibility in·ac·ces·si·ble adj. Not accessible; remote or unapproachable. in  ac·ces , foreign
exchange exposure and management problems; and (x) a significant general
slow down in the economy in 2001 could reduce consumer demand for
wireless services, thereby causing providers to delay implementation of
new systems and technologies, and has already harmed, and may continue
to harm, the financial condition of some wireless service providers. For
other important factors that may cause actual results to differ
materially from those in our forward looking statements, we refer you to
those set forth under the caption "Business - Factors That May
Affect Future Results" in our Form 10-K Form 10-KA 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 31, 2000, which we incorporate herein by reference. Forward looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward looking statements made by us. American Tower Corporation 116 Huntington Avenue Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New 02116 (617) 375-7500 FAX (617) 375-7575 www.americantower.com
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
REVENUES:
Rental and management $ 91,211 $ 53,707
Services 106,514 38,152
Satellite and fiber network access
services 64,743 23,658
Total operating revenues 262,468 115,517
OPERATING EXPENSES:
Rental and management 45,590 28,492
Services 96,498 32,200
Satellite and fiber network
access services 56,313 19,016
Depreciation and amortization 94,999 55,198
Development expense (A) 2,745 988
Corporate general and
administrative expense 5,127 3,431
Total operating expenses 301,272 139,325
OPERATING LOSS (38,804) (23,808)
OTHER INCOME (EXPENSE):
Interest expense (66,679) (32,150)
Interest income and other, net 8,407 2,586
Interest income, TV Azteca, net of
$292 and $160 of interest expense,
respectively 3,538 2,308
Minority interest in net earnings
of subsidiaries (58) (36)
Total other expense (54,792) (27,292)
LOSS BEFORE INCOME TAXES
AND EXTRAORDINARY LOSSES (93,596) (51,100)
INCOME TAX BENEFIT 22,089 13,440
LOSS BEFORE EXTRAORDINARY
LOSSES (71,507) (37,660)
EXTRAORDINARY LOSSES ON
EXTINGUISHMENT OF DEBT, NET
OF INCOME TAX BENEFIT OF $2,892 (4,338)
NET LOSS $(71,507) $(41,998)
BASIC AND DILUTED NET LOSS
PER COMMON SHARE
Loss before extraordinary
losses $ (0.38) $ (0.24)
Extraordinary losses (0.03)
BASIC AND DILUTED NET LOSS
PER COMMON SHARE $ (0.38) $ (0.27)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 187,179 156,515
OTHER OPERATING DATA
(In thousands, except per
share data)
EBITDA (B) $ 59,733 $ 33,698
EBITDA EXCLUDING DEVELOPMENT
EXPENSE $ 62,478 $ 34,686
LEGEND
(A) Includes uncapitalized acquisition costs, costs to integrate
acquisitions, costs associated with new business initiatives,
abandoned acquisition costs and costs associated with tower site
inspections and related data gathering.
(B) Defined as operating loss before depreciation and amortization
plus interest income TV Azteca, net.
American Tower Corporation
May 2, 2001
(In Millions)
2001 Quarterly and 2001 Fiscal 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 May 2, 2001. Company outlook is based on
assumptions about the timing of closings, the number of towers closed,
the number of new builds constructed, and tenant lease-up rates.
Please refer to the cautionary language included in this press release
when considering this information. The Company undertakes no
obligation to update this information.
"Cash flow" is defined as segment revenues less segment operating
expenses before depreciation and amortization, development expense,
and corporate general and administrative expense. Segment cash flow
for rental and management includes interest income TV Azteca, net.
Q2 2001 Q3 2001
Outlook Ranges Outlook Ranges
Rental and Management
Revenue $ 97 to $ 100 $ 111 to $ 114
Rental and Management Cash Flow 53 to 57 63 to 67
(includes Interest
Income TV Azteca, net)
Services Revenue 98 to 118 115 to 140
Services Cash Flow 12 to 16 17 to 23
Satellite and Fiber Network
Access Services Revenue 68 to 73 77 to 81
Satellite and Fiber Network
Access Services Cash Flow 11 to 14 17 to 18
Total Revenue 263 to 291 303 to 335
Total Cash Flow 76 to 87 97 to 108
EBITDA Excluding Development
Expense 71 to 81 91 to 103
EBITDA 69 to 80 89 to 102
Depreciation and Amortization 107 to 105 116 to 114
Interest Expense, Net of
Interest Income and Other 69 to 65 76 to 72
Basic and Diluted Net Loss
Per Common Share $(0.45) to $(0.38) $(0.44) to $(0.36)
Q4 2001 Fiscal Year 2001
Outlook Ranges Outlook Ranges
Rental and Management Revenue $ 124 to $ 130 $ 423 to $ 435
Rental and Management Cash Flow 72 to 79 235 to 250
(includes Interest Income
TV Azteca, net)
Services Revenue 105 to 130 425 to 495
Services Cash Flow 15 to 20 55 to 70
Satellite and Fiber Network
Access Services Revenue 89 to 93 299 to 312
Satellite and Fiber Network
Access Services Cash Flow 23 to 24 60 to 65
Total Revenue 318 to 353 1,147 to 1,242
Total Cash Flow 110 to 123 350 to 385
EBITDA Excluding Development
Expense 104 to 117 328 to 363
EBITDA 102 to 116 319 to 357
Depreciation and Amortization 127 to 125 445 to 439
Interest Expense, Net of
Interest Income and Other 81 to 77 285 to 273
Basic and Diluted Net Loss Per
Common Share $(0.45) to $(0.37) $(1.73) to $(1.50)
Capital expenditures for the year 2001 are expected to be between $550
million and $670 million.
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