American Tower Corporation Reports Third Quarter 2004 Results.
-- Rental and Management segment revenues increased 11% to $174.9
million
-- Rental and Management segment operating profit increased 16%
to $121.6 million
-- Adjusted EBITDA increased 15% to $115.7 million
-- Cash provided by operating activities increased 49% to $43.8
million
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 financial results for the quarter ended September September: see month. 30, 2004, delivering solid growth in 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 and 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. . For the three months ended September 30, 2004, total revenues increased to $199.2 million and income from operations increased to $24.6 million, as compared to $186.9 million and $12.0 million, respectively, for the same period in 2003. Net loss for the third quarter was $55.9 million, or $(0.25) per share, and includes a $48.0 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 the Company's 9.375% senior notes and the repurchases of other debt securities described below. Rental and Management segment revenues increased 11% to $174.9 million and operating profit increased 16% to $121.6 million for the three months ended September 30, 2004, as compared to the same period in 2003. Rental and Management segment revenues and operating profit include approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2 million of net non-recurring positive items. 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 ("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 15% to $115.7 million for the three months ended September 30, 2004, as compared to the same period in 2003. Net cash provided by operating activities increased 49% to $43.8 million, and payments for purchase of property and equipment and construction activities decreased 25% to $9.9 million for the three months ended September 30, 2004, as compared to the same period in 2003. Free cash flow ("Adjusted EBITDA less interest expense and payments for purchase of property and equipment and construction activities") increased 114% to $40.1 million for the three months ended September 30, 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 "Our third quarter results reflect the continued strength of our tower rental business. As wireless subscribers and minutes of use continue to grow and new services and applications are deployed, we remain focused on delivering faster, more efficient and higher quality operational execution, which will continue to drive significant revenue and free cash flow growth. "We have also made substantial progress strengthening our financial position during the third quarter with two refinancings that reduce our interest costs and extend maturities. Since the beginning of the year we have refinanced or repurchased over $1 billion of debt, reducing our annual interest expense by approximately $50 million and further accelerating our free cash flow growth. "The consistency Consistency can refer to:
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. industry, combined with the continued improvement in our financial position, give us confidence in our future performance as we look forward to 2005 and beyond." Sale of Construction Services As previously announced in October October: see month. 2004, the Company signed a definitive agreement to sell its tower construction services unit. As a result of the pending sale, the Company recorded an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of approximately $2 million during the three months ended September 30, 2004 and will report its tower construction services unit as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. , commencing in the fourth quarter of 2004. The sale is expected to close during the fourth quarter of 2004, subject to satisfaction of customary closing conditions. The Company's network development services segment will continue to provide complementary non-construction services including site acquisition, zoning and permitting, and structural analysis. Financing Highlights The Company continued to strengthen its financial position through a combination of strong operational execution and its capital market activities. As previously announced, in the third quarter of 2004 the Company sold $345 million principal amount of its 3.00% convertible notes due 2012 through an institutional private placement. The Company used 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). of the offering and $47 million of cash on hand to 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. and 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. a total of $357 million principal amount of the Company's 9.375% senior notes due 2009 during the third quarter. In addition, the Company completed the sale of $300 million principal amount of 7.125% senior notes due 2012 in October 2004. The Company will use the net proceeds of this financing to fund 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. in November November: see month. 2004 of $276 million of its 9.375% senior notes. 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, repurchasing a total of $147 million face amount ($85 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 discount allocated to warrants) for an aggregate purchase price of $110 million in cash, including $84 million face amount in the third quarter of 2004 and $63 million face amount subsequent to the end of the third quarter. The Company has repurchased a total of $247 million face amount of its 12.25% senior subordinated discount notes to date. As a result of the Company's year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. note repurchases and refinancings, the Company anticipates saving approximately $50 million in 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. net interest expense. In addition, the Company has recorded a pre-tax loss on retirement of long-term obligations of $48 million in the third quarter of 2004 and has included a pre-tax loss on retirement of long-term obligations of approximately $35 million in its outlook for the fourth quarter of 2004. The Company reduced its Net Leverage Ratio ("total debt less cash and cash equivalents and restricted cash and investments on hand divided by third quarter annualized Adjusted EBITDA") to 6.7x as of September 30, 2004. Fourth Quarter and Full Year 2005 Outlook The Company's fourth quarter and full year 2004 and 2005 outlook for each of its operating segments is provided on page 9 of this press release. 4Q04 Highlights --The Company has adjusted its Rental and Management segment revenue outlook to $175 million to $177 million, reflecting a modest increase in the low end of the outlook, and increased its Rental and Management segment operating profit outlook to $121 million to $124 million --The Company has adjusted its Network Development Services segment outlook to reflect its construction services unit as a discontinued operation --The Company has reduced its outlook for interest expense to $58 million to $60 million as a result of refinancing activities and debt repurchases during and subsequent to the third quarter of 2004 --The Company has reduced its outlook for capital expenditures to $10 million to $15 million 2005 Highlights --The Company's full year 2005 Rental and Management segment revenue and operating profit outlook is based on annual incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue of $43 million to $56 million and approximately 90% or greater cash flow conversion rate --The Company's full year 2005 outlook for interest expense is $220 million to $235 million, including $66 million of non-cash interest --The Company's full year 2005 outlook for capital expenditures is $50 million to $65 million, including $25 million to $35 million for the construction of approximately 100 to 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 Conference Call Information American Tower will host a conference call today at 10:00 a.m. Eastern to discuss quarterly results 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 1524219. A replay of the call will be available from 11:00 a.m. Eastern October 28, 2004 until 11:00 p.m. Eastern November 4, 2004. The replay dial-in numbers are US/Canada: (800) 642-1687 and international: (706) 645-9291, access code 1524219. 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 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, Free Cash Flow 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, Free Cash Flow 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 5 to 7 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 quarterly and full year 2004 and full year 2005 Outlook, the planned sale of our tower construction services unit 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 expropriation The taking of private property for public use or in the public interest. The taking of U.S. industry situated in a foreign country, by a foreign government. Expropriation is the act of a government taking private property; Eminent Domain is the legal term describing the risk, governmental regulation, funds inaccessibility in·ac·ces·si·ble adj. Not accessible; remote or unapproachable. in  ac·ces ,
and foreign exchange exposure; (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) new technologies could make our tower antenna leasing services less desirable to potential tenants and result in decreasing revenues; (10) 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; and (11) 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 June June: see month. 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) September December
30, 31,
2004 2003
-----------------------
ASSETS
Current Assets:
Cash and cash equivalents $126,833 $105,465
Restricted cash and investments 170,036
Accounts receivable, net 41,704 57,735
Other current assets 73,203 68,160
Assets held for sale 3,389 10,119
-----------------------
Total current assets 245,129 411,515
-----------------------
Property and equipment, net 2,391,203 2,546,525
Goodwill and other intangible assets, net 1,627,506 1,649,760
Deferred income taxes 516,060 449,180
Notes receivable and other long-term assets 288,536 275,508
-----------------------
Total $5,068,434 $5,332,488
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $104,833 $107,557
Accrued interest 31,162 59,734
Current portion of long-term obligations 6,722 77,622
Other current liabilities 33,154 41,449
Liabilities held for sale 8,416
-----------------------
Total current liabilities 175,871 294,778
-----------------------
Long-term obligations 3,211,635 3,283,603
Other long-term liabilities 47,037 23,961
-----------------------
Total liabilities 3,434,543 3,602,342
-----------------------
Minority interest in subsidiaries 11,863 18,599
-----------------------
STOCKHOLDERS' EQUITY
Class A Common Stock 2,267 2,119
Class B Common Stock 70
Class C Common Stock 12
Additional paid-in capital 3,973,893 3,910,879
Accumulated deficit (2,349,766)(2,190,447)
Note receivable (6,720)
Treasury stock (4,366) (4,366)
-----------------------
Total stockholders' equity 1,622,028 1,711,547
-----------------------
Total $5,068,434 $5,332,488
=======================
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per Three Months Ended Nine Months Ended
share data) September 30, September 30,
------------------------------------------
2004 2003 2004 2003
------------------------------------------
REVENUES:
Rental and management $174,946 $158,193 $507,109 $456,571
Network development
services 24,242 28,681 71,230 67,052
------------------------------------------
Total operating
revenues 199,188 186,874 578,339 523,623
------------------------------------------
OPERATING EXPENSES:
Rental and management 56,969 56,758 168,186 165,659
Network development
services 23,216 26,274 68,213 62,486
Depreciation,
amortization and
accretion 78,695 77,687 237,754 236,965
Corporate general,
administrative and
development expense 6,861 6,493 20,391 20,106
Impairments, net loss
on sale of long-lived
assets and
restructuring expense 8,815 7,646 18,102 19,344
------------------------------------------
Total operating
expenses 174,556 174,858 512,646 504,560
------------------------------------------
INCOME FROM OPERATIONS 24,632 12,016 65,693 19,063
------------------------------------------
OTHER INCOME (EXPENSE):
Interest income, TV
Azteca, net 3,584 3,523 10,776 10,553
Interest income 1,166 1,177 3,402 4,033
Interest expense (65,653) (68,906) (202,870) (211,849)
(Loss) gain on
retirement of long-
term obligations (47,951) 3,255 (87,392) (41,068)
Loss on investments and
other expense (1,787) (1,449) (3,886) (27,050)
Minority interest in
net earnings of
subsidiaries (271) (907) (2,184) (2,270)
------------------------------------------
Total other
expense (110,912) (63,307) (282,154) (267,651)
------------------------------------------
LOSS FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES (86,280) (51,291) (216,461) (248,588)
INCOME TAX BENEFIT 29,076 13,593 56,720 50,453
------------------------------------------
LOSS FROM CONTINUING
OPERATIONS (57,204) (37,698) (159,741) (198,135)
INCOME (LOSS) FROM
DISCONTINUED OPERATIONS,
NET 1,300 (15,164) 422 (54,065)
------------------------------------------
NET LOSS $(55,904) $(52,862) $(159,319)$(252,200)
==========================================
BASIC AND DILUTED NET LOSS
PER COMMON SHARE AMOUNTS
Loss from continuing
operations $(0.25) $(0.18) $(0.72) $(0.97)
Income (loss) from
discontinued
operations (0.07) 0.01 (0.27)
------------------------------------------
BASIC AND DILUTED NET LOSS
PER COMMON SHARE $(0.25) $(0.25) $(0.71) $(1.24)
==========================================
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 224,839 213,788 222,948 204,201
==========================================
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended
(In thousands) September 30,
----------------------
2004 2003
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(159,319) $(252,200)
Non-cash items reflected in statements of
operations 350,853 368,255
(Increase) decrease in assets (132) 12,546
Decrease in liabilities (42,239) (48,576)
----------- ----------
Cash provided by operating activities 149,163 80,025
----------- ----------
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Payments for purchase of property and
equipment and construction activities (28,612) (45,934)
Payments for acquisitions (27,843) (75,990)
Payment for acquisition of Mexico minority
interest (3,947)
Proceeds from sale of businesses and other
long-term assets 23,499 74,296
Deposits, investments and other long-term
assets 325 (10,048)
----------- ----------
Cash used for investing activities (36,578) (57,676)
----------- ----------
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Proceeds from issuance of debt securities and
notes payable 570,000 632,384
Net proceeds from equity offering, stock
options and other 23,460 125,205
Repayment of notes payable, credit facility
and capital leases (1,523,835) (528,745)
Borrowings under credit facility 700,000
Restricted cash and investments 170,036 (283,722)
Deferred financing costs (30,878) (28,632)
----------- ----------
Cash used for financing activities (91,217) (83,510)
----------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 21,368 (61,161)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 105,465 127,292
----------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $126,833 $66,131
=========== ==========
CASH PAID FOR INCOME TAXES $1,902 $1,613
=========== ==========
CASH PAID FOR INTEREST $173,718 $198,658
=========== ==========
UNAUDITED SUPPLEMENTAL INFORMATION
SELECTED CAPITAL
EXPENDITURE DETAIL Three Months Ended
(in millions) September 30, 2004
----------------------------------
CAPITAL EXPENDITURES (PAYMENTS FOR PURCHASE OF PROPERTY
AND EQUIPMENT AND CONSTRUCTION ACTIVITIES)
Discretionary $3
Improvements/Augumentation 6
Corporate 1
-------------------------
Total $10
-------------------------
SELECTED INTEREST EXPENSE
DETAIL Three Months Ended
(in millions) September 30, 2004
-------------------------
Credit facility $7
12.25% Senior subordinated discount notes due 2008 12
Discount amortization of $0.01 warrants expiring
2008 2
9.375% Senior notes due 2009 22
5.0% Convertible notes due 2010 3
3.25% Convertible notes due 2010 2
7.25% Senior subordinated notes due 2011 7
7.50% Senior notes due 2012 4
3.0% Convertible notes due 2012 1
Discount and deferred financing amortization 3
Other 3
-------------------------
Total interest expense $66
-------------------------
SELECTED BALANCE SHEET
DETAIL
(in millions)
LONG TERM OBLIGATIONS BREAKOUT, September 30, 2004
INCLUDING CURRENT PORTION
-------------------------
Term loan A 300
Term loan B 399
12.25% Senior subordinated discount notes due 2008 367
9.375% Senior notes due 2009 636
5.00% 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
3.00% Convertible notes due 2012 344
Other debt 61
-------------------------
Total long term obligations $3,218
-------------------------
Net debt (Total long term obligations less
total cash and cash equivalents) $3,092
-------------------------
SELECTED SHARE DETAIL
September 30, 2004
------------------
TOTAL SHARES OUTSTANDING
(in millions) 226.6
==================
SELECTED TOWER PORTFOLIO DETAIL
Three Months Ended
September 30, 2004
ACTIVE TOWER COUNTS
Owned
Wireless Broadcast Managed or
Towers Towers Lease/Sublease Total
-----------------------------------------
Beginning Balance, 7/1/04 13,646 327 719 14,692
New Construction 14 - - 14
Acquisitions 49 - - 49
Reductions (11) - (4) (15)
-----------------------------------
Ending Balance, 9/30/04 13,698 327 715 14,740
===================================
The following estimates are based on a number of assumptions that
management believes to be reasonable, and reflect the Company's
expectations as of October 28, 2004. Company outlook is based on
assumptions about the number of new builds constructed, tenant
lease-up and the timing of tower closings. Please refer to the
cautionary language regarding "forward-looking" statements included in
this press release when considering this information. The Company
undertakes no obligation to update this information.
"Segment operating profit" is defined as segment revenues less
segment operating expenses before depreciation, amortization and
accretion, corporate general administrative and development expense,
and impairments, net loss on sale of long-lived assets and
restructuring expense. Segment operating profit for rental and
management includes interest income, TV Azteca, net.
"Adjusted EBITDA" is defined as income from operations before
depreciation, amortization and accretion and impairments, net loss on
sale of long-lived assets and restructuring expense, plus interest
income, TV Azteca, net.
American Tower Corporation Financial Summary
October 28, 2004
(In millions, except per share data)
2004: 4Q AND FULL YEAR OUTLOOK, 2005: FULL YEAR OUTLOOK
Q4 2004 Full Year 2004 2005
Outlook Ranges Outlook Ranges Outlook Ranges
--------------- --------------- ---------------
Rental and management
revenue $175 to $177 $682 to $684 $725 to $740
Rental and management
segment operating
profit 121 to 124 471 to 474 511 to 523
(Includes
interest income,
TV Azteca, net)
Services revenue (1) 3 to 4 18 to 19 13 to 17
Services segment
operating profit (1) 1 to 1 4 to 4 3 to 5
Total revenue 178 to 181 700 to 703 738 to 757
Total segment
operating profit 122 to 125 475 to 478 514 to 528
Corporate and
development expense 7 to 6 27 to 26 28 to 25
Adjusted EBITDA 115 to 119 448 to 452 486 to 503
Depreciation,
amortization and
accretion 79 to 77 313 to 311 315 to 310
Total interest expense 60 to 58 263 to 261 235 to 220
Loss from continuing
operations (2) (48) to (43) (203) to (198) (66) to (42)
Basic and diluted net
loss per common share
from continuing
operations (0.21) to(0.19) (0.91) to(0.89) (0.29) to(0.18)
Payments for purchase
of property and
equipment and
construction
activities 10 to 15 39 to 44 50 to 65
Non-cash interest
expense included in
total interest
expense above:
Accretion of
12.25% senior
subordinated
notes due 2008 $11 to $11 $51 to 51 $46 to $46
Accretion of
warrants
discount 2 to 2 8 to 8 7 to 7
Amortization of
deferred
financing fees 3 to 3 15 to 15 13 to 13
------ ------ ------ ------ ------ ------
Total non-cash
interest expense $16 to $16 $74 to $74 $66 to $66
RECONCILIATION OF OUTLOOK TO
GAAP MEASURES (3)
The reconciliation of
loss from continuing
operations to Q4 2004 Full Year 2004 Full Year 2005
Adjusted EBITDA is as
follows: Outlook Ranges Outlook Ranges Outlook Ranges
--------------- --------------- ---------------
Loss from continuing
operations $(48) to $(43) $(203) to$(198) $(66) to $(42)
Interest expense 60 to 58 263 to 261 235 to 220
Depreciation,
amortization and
accretion 79 to 77 313 to 311 315 to 310
Other, including
interest income, loss
on retirement of
long-term
obligations, loss on
investment and other
expense, and income
tax benefit 24 to 27 75 to 78 2 to 15
------ ------ ------ ------ ------ ------
Adjusted EBITDA $115 to $119 $448 to $452 $486 to $503
====== ====== ====== ====== ====== ======
(1) The Services segment reflects the construction services division
as a discontinued operation.
(2) The 4Q04 Loss from continuing operations includes a $35 million
loss from retirement of long-term obligations as a result of our debt
repurchases.
(3) We have not reconciled our adjusted EBITDA outlook 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.
UNAUDITED RECONCILIATIONS TO GAAP MEASURES
In thousands
Third Quarter 2004 and 2003: Adjusted
EBITDA and free cash flow
The reconciliation of net loss to
adjusted EBITDA and free cash flow Three Months Ended
is as follows: September 30,
------------------------------
2004 2003
---------- ----------
Net loss $(55,904) $(52,862)
(Income) loss from discontinued
operations, net (1,300) 15,164
---------- ----------
Loss from continuing operations (57,204) (37,698)
---------- ----------
Interest expense 65,653 68,906
Interest income (1,166) (1,177)
Income tax benefit (29,076) (13,593)
Depreciation, amortization and
accretion 78,695 77,687
Impairments, net loss on sale of long-
lived assets and restructuring expense 8,815 7,646
Loss (gain) on retirement of long-term
obligations 47,951 (3,255)
Minority interest in net earnings of
subsidiaries 271 907
Loss on investments and other expense 1,787 1,449
---------- ----------
Adjusted EBITDA $115,726 $100,872
========== ==========
Interest expense (65,653) (68,906)
Payments for purchase of property and
equipment and construction activities (9,946) (13,243)
---------- ----------
Free cash flow 40,127 18,723
---------- ----------
Accretion of 2.25% discount convertible
notes due 2009 1 917
Accretion of 12.25% senior subordinated
discount notes due 2008 12,176 13,398
Accretion of warrants discount (issued
in conjunction with 12.25% notes) 1,872 2,263
Amortization of deferred financing fees 3,378 3,690
---------- ----------
Free cash flow, excluding accretion and
amortization of deferred financing $57,554 $38,991
========== ==========
Net Leverage Ratio
The calculation of net leverage for the
end of the third quarter 2004 and 2003
is as follows: September 30,
------------------------------
2004 2003
---------- ----------
Cash and cash equivalents $126,833 $66,131
Restricted cash and investments - 283,722
---------- ----------
Total cash and cash equivalents 126,833 349,853
---------- ----------
Current portion of long-term
obligations 6,722 185,732
Long-term obligations 3,211,635 3,304,866
---------- ----------
Total debt 3,218,357 3,490,598
---------- ----------
Net debt (Total debt less total cash
and cash equivalents) 3,091,524 3,140,745
Respective 3Q Adjusted EBITDA 115,726 100,872
x 4 x 4
---------- ----------
Respective 3Q Annualized Adjusted
EBITDA $462,904 $403,488
---------- ----------
Net Leverage Ratio (Net debt divided by 6.7x 7.8x
respective 3Q annualized Adjusted
EBITDA)
========== ==========
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