Andrew, here's a snip from Salomon Smith Barney
(there is a law against posting the whole report)
Salomon Smith Barney's Media & Telecom Conference
Salomon Smith Barney
Wednesday, January 12, 2000
* AMERICAN TOWER SENIOR MANAGEMENT PRESENT AT SALOMON SMITH BARNEY'S 10TH
ANNUAL ENTERTAINMENT, MEDIA AND TELECOM CONFERENCE: Steve Dodge,
President and CEO, and Joe Winn, CFO, presented at SSB's 10th Annual
Entertainment, Media and Telecommunications Conference Tuesday, January
11, 2000. American Tower is bullish on its outlook for all 4 of its
business segments: broacast towers services; teleports and wireless
towers. Management continues to focus on new tower builds & maintaining a
leading position in all segments.
* BROADCAST TOWERS - Management remains attracted by the very good
economics
of broadcast towers and expect ROI's of 20% over the next 5 years.
Management is confident that it will achieve its goal of $100 million in
tall tower EBITDA in 5 years.
* SERVICES - The company reaffirmed its commitment to the services
business.
Although this business typically has lower margins than the site rental
segments, it does generate very good returns. Management expects this
business to generate $100 million of EBITDA over next 5 years.
* TELEPORTS - During AMT's upbeat presentation management presented a
very bullish outlook toward this segment. We believe the teleport
business is a great way to play the growth in international internet
traffic. They indicated that this was another segment capable of
producing $100 million of EBITDA within 5 years.
* WIRELESS TOWERS- The wireless segment continues to perform well. AMT
built over 1,050 new towers in 1999 and is confident it will attain its
new towers build estimates moving forward. Lease-up of existing towers
remains robust. An average of 2.5 tenants per tower in 5 years achieves
15% ROA, and 3.0 tenants per tower generates 19% ROA. Build-To-Suit
backlog remains strong at 2500 towers. |
