Does anyone know what was expected from the company? Earnings release...
American Tower Corporation Reports Strong Third Quarter Results
BOSTON--(BUSINESS WIRE)--Oct. 27, 2000--American Tower Corporation (the ``Company'' or ``American Tower'')(NYSE: AMT - news) today reported significant increases in revenues and EBITDA excluding development expense (``operating loss before depreciation and amortization and development expense plus interest income, TV Azteca, net'') for the quarter and nine months ended September 30, 2000 as compared to the same periods in the prior year.
For the three months ended September 30, 2000, revenues increased to $209.0 million from $67.5 million for the three months ended September 30, 1999. EBITDA excluding development expense increased to $64.0 million for the three months ended September 30, 2000 from $25.5 million for the same period in 1999. For the nine months ended September 30, 2000, revenues increased to $491.5 million from $169.1 million for the nine months ended September 30, 1999. EBITDA excluding development expense increased to $146.1 million for the nine months ended September 30, 2000 from $64.5 million for the same period in 1999.
Steve Dodge, American Tower's Chairman and Chief Executive Officer stated, ``We are experiencing very strong organic growth in both revenue and EBITDA in all of our business segments. At the same time, we are focused on expanding the scale and reach of our asset base to take advantage of strong demand and to leverage our investment in people. We believe we are achieving long term competitive advantages through managing down the average cost of our towers, the operating costs of our towers, and our cost of capital.''
Fourth Quarter 2000 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 October 27, 2000. 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 and development expense. Rental and management cash flow includes interest income, TV Azteca, net.
Rental and management revenues are expected to be between $83 million and $88 million. Rental and management cash flow is expected to be between $48 million and $53 million.
Services revenues are expected to be between $85 million and $94 million. Services cash flow is expected to be between $12 million and $14 million.
Internet, voice, data and video transmission services revenues are expected to be between $45 million and $47 million. Internet, voice, data and video transmission services cash flow is expected to be between $12 million and $14 million.
EBITDA excluding development expense is expected to be between $68 million and $77 million. EBITDA is expected to be between $67 million and $76 million.
Depreciation and amortization expense are expected to be between $90 million and $95 million. Net interest expense is expected to be between $42 million and $45 million.
Basic and diluted net loss per share is expected to be between $(0.30) and $(0.32).
American Tower will host a conference call today at 10:00 a.m. Eastern to discuss quarterly results and fourth quarter outlook. The call will be hosted by Joe Winn, Chief Financial Officer, who will be joined by Steve Dodge, Chief Executive Officer. The dial-in numbers are US: 888-639-6205, international: 952-556-2846, no access codes required. A replay of the call will be available from 1:00 p.m. Eastern Friday, October 27, 2000 until 11:59 p.m. Eastern Tuesday, November 7, 2000. The replay dial-in numbers are US: 800-475-6701, and international: 320-365-3844, access code 544945. American Tower will also sponsor a live simulcast and replay of the call on its web site www.americantower.com.
American Tower is the leading independent owner, operator and developer of broadcast and wireless communications sites in North America. Giving effect to pending transactions, American Tower operates approximately 10,800 sites in the United States, Mexico and Canada, including approximately 300 broadcast tower sites. Of the 10,800 sites, approximately 9,800 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 and Mexico City. 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'' that involve a number of risks and uncertainties. Forward-looking statements include the information contained in the section titled ``Fourth Quarter 2000 Outlook'' and statements regarding our goals, beliefs, strategies, objectives, plans or current expectations and matters that are not historical facts. For example, when we use the words believe, expect, estimate, anticipate or similar expressions, we are making forward-looking statements. You should be aware that certain factors may affect us in the future and could cause actual results to differ materially from those expressed in our forward-looking statements. These factors include, but are not limited to (i) our substantial capital requirements and leverage due principally to our ongoing acquisitions and construction, (ii) our dependence on the following: wireless communications demand, use of satellites for Internet data transmission, and implementation of digital television, (iii) the success of our tower construction program, (iv) our ability to locate attractive acquisition targets, acquire them on terms we feel are reasonable, and successfully integrate our acquisitions, and (v) the governmental, expropriation, currency and fund repatriation risks inherent in our growing foreign operations. We undertake no obligation to update the forward-looking statements contained in this press release, including the fourth quarter outlook ranges, to reflect subsequently occurring events or circumstances.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
REVENUES:
Rental and management $ 75,535 $ 37,768 $ 192,475 $ 94,640
Services 91,185 22,710 203,363 54,948
Internet, voice, data
and video
transmission
services 42,238 7,061 95,684 19,512
Total operating revenues 208,958 67,539 491,522 169,100
OPERATING EXPENSES:
Rental and management 37,335 17,603 97,117 42,946
Services 75,741 16,737 173,068 41,300
Internet, voice, data
and video
transmission
services 32,060 5,421 74,318 14,045
Depreciation and
amortization 75,973 35,111 198,264 92,919
Development expense (A) 5,311 744 10,495 1,302
Corporate general and
administrative expense 3,442 2,255 9,957 6,327
Total operating expenses 229,862 77,871 563,219 198,839
OPERATING LOSS (20,904) (10,332) (71,697) (29,739)
OTHER INCOME (EXPENSE):
Interest expense (41,752) (5,958) (112,339) (17,497)
Interest income
and other, net 6,560 3,162 12,997 13,899
Interest income,
TV Azteca,
net of $296
and $753
of interest
expense,
respectively
(related party) 3,607 9,070
Note conversion
expense (B) (16,968)
Minority interest
in net (earnings)
losses of
subsidiaries 140 (158) 82 (79)
Total other
income (expense) (31,445) (2,954) (107,158) (3,677)
LOSS BEFORE BENEFIT
FOR INCOME TAXES
AND EXTRAORDINARY
LOSSES (52,349) (13,286) (178,855) (33,416)
INCOME TAX BENEFIT 12,822 195 43,036 942
LOSS BEFORE
EXTRAORDINARY LOSSES (39,527) (13,091) (135,819) (32,474)
EXTRAORDINARY LOSSES ON
EXTINGUISHMENT OF
DEBT, NET OF
INCOME TAX
BENEFIT OF $2,892 (4,338)
NET LOSS $ (39,527) $(13,091) $ (140,157) $(32,474)
BASIC AND DILUTED
NET LOSS PER
COMMON SHARE
Loss before
extraordinary losses $ (0.22) $ (0.08) $ (0.82) $ (0.22)
Extraordinary losses (0.03)
BASIC AND DILUTED
NET LOSS PER
COMMON SHARE $ (0.22) $ (0.08) $ (0.85) $ (0.22)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 178,056 155,625 165,244 147,588
OTHER OPERATING DATA
(In thousands)
EBITDA (C) $ 58,676 $ 24,779 $ 135,637 $ 63,180
EBITDA EXCLUDING
DEVELOPMENT EXPENSE $ 63,987 $ 25,523 $ 146,132 $ 64,482
NET LOSS PER SHARE
EXCLUDING NOTE
CONVERSION EXPENSE
AND EXTRAORDINARY
LOSSES $ (0.22) $ (0.08) $ (0.72) $ (0.22)
LEGEND
(A) Includes costs incurred for acquisitions and related integration,
new business initiatives, abandoned acquisitions and costs
associated with tower site inspections and related data
gathering. Certain reclassifications have been made to the 1999
amounts to conform with the 2000 presentation.
(B) Represents expense equal to the fair value of incremental stock
issued to encourage convertible note holders to convert their
holdings prior to the original conversion term.
(C) Defined as operating loss before depreciation and amortization
plus interest income, TV Azteca, net.
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Contact:
American Tower Corporation
Anne Alter, Director of Investor Relations
(617) 375-7500 |
