EX-99.2
Exhibit 99.2
Contact: Leah Stearns
Vice President, Investor Relations & Capital Markets
Telephone: (617) 375-7500
AMERICAN TOWER CORPORATION REPORTS
THIRD QUARTER AND YEAR TO DATE 2013 FINANCIAL RESULTS
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| CONSOLIDATED HIGHLIGHTS |
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| Third Quarter 2013 |
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Year to Date 2013 |
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Total revenue increased 13.3% to $807.9 million |
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• |
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Total revenue increased 14.8% to $2,419.4 million |
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Operating income increased 4.5% to $308.9 million |
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Operating income increased 9.6% to $921.4 million |
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Cash provided by operating activities increased 1.8% to $359.9 million |
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Cash provided by operating activities increased 2.5% to $1,144.4 million |
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| SEGMENT HIGHLIGHTS |
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| Third Quarter 2013 |
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Year to Date 2013 |
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Domestic rental and management segment revenue increased 10.3% to $529.9 million |
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• |
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Domestic rental and management segment revenue increased 8.7% to $1,566.7 million |
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International rental and management segment revenue increased 22.8% to $266.6 million |
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International rental and management segment revenue increased 27.9% to $796.5 million |
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Network development services segment revenue was $11.3 million |
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Network development services segment revenue was $56.2 million |
Boston, Massachusetts – October 30, 2013: American Tower Corporation (NYSE: AMT) today reported financial
results for the quarter ended September 30, 2013.
Jim Taiclet, American Tower’s Chief Executive Officer stated, “Consumers in the U.S. and
around the world love their smartphones and tablets, continuously upgrading devices and using more applications and bandwidth. Leading mobile operators are aggressively upgrading their networks to capture this business, further driving demand
for tower space. Consequently, strong leasing activity across our global portfolio led to core organic growth of over 9% in the U.S. and 14% in our international segment in the third quarter.
We anticipate strong leasing demand for communications site real estate going forward, and through our recently announced acquisitions of Global Tower
Partners and portfolios from Nextel International, we have reweighted our asset base toward our three original markets, the U.S., Mexico and Brazil. These investments, coupled with the diversification and growth prospects of our tower assets in
Europe, Africa, and Asia, provide the strategic positioning to achieve our long-term objective of driving mid-teen annual growth in AFFO per share.”
THIRD QUARTER 2013 OPERATING RESULTS OVERVIEW
American
Tower generated the following operating results for the quarter ended September 30, 2013 (unless otherwise indicated, all comparative information is presented against the quarter ended September 30, 2012).
Total revenue increased 13.3% to $807.9 million and total rental and management revenue increased 14.2% to $796.6 million. Total rental and management revenue
Core Growth was approximately 18.5%. Please refer to the selected statement of operations detail on page 13, which highlights the items affecting all Core Growth percentages for the quarter ended September 30, 2013.
Total rental and management Gross Margin increased 15.3% to $604.4 million. Total selling, general, administrative and development expense was $97.8 million,
including $14.7 million of stock-based compensation expense. Adjusted EBITDA increased 13.9% to $527.9 million, Core Growth in Adjusted EBITDA was 17.4%, and Adjusted EBITDA Margin was 65%.
1
Adjusted Funds From Operations (AFFO) increased 24.4% to $367.3 million, AFFO per Share increased 24.3% to $0.92,
and Core Growth in AFFO was approximately 25.9%.
Operating income increased 4.5% to $308.9 million, and net income attributable to American Tower
Corporation decreased 22.4% to $180.1 million. The decrease was primarily attributable to the Company’s recognition of unrealized non-cash losses of $30.9 million associated with fluctuations in foreign currency exchange rates related to
intercompany loans and similar unaffiliated balances. Net income attributable to American Tower Corporation per basic common share decreased 22.0% to $0.46, and net income attributable to American Tower Corporation per diluted common share decreased
22.4% to $0.45.
Cash provided by operating activities increased 1.8% to $359.9 million.
Segment Results
Domestic Rental and Management
Segment – Domestic rental and management segment revenue increased 10.3% to $529.9 million, which represented 66% of total revenues, and domestic rental and management segment Gross Margin increased 12.0% to $434.7 million.
Domestic rental and management segment Operating Profit increased 11.4% to $410.2 million, and domestic rental and management segment Operating Profit Margin was 77%.
International Rental and Management Segment – International rental and management segment revenue increased 22.8% to $266.6 million,
which represented 33% of total revenues. International rental and management segment Gross Margin increased 25.0% to $169.7 million, while international rental and management segment Operating Profit increased 24.7% to $138.0 million. International
rental and management segment Operating Profit Margin was 52% (71%, excluding the impact of $71.3 million of pass-through revenues).
Network
Development Services Segment – Network development services segment revenue was $11.3 million, which represented 1% of total revenues. Network development services segment Gross Margin was $6.5 million, and network development
services segment Operating Profit was $4.6 million. Network development services segment Operating Profit Margin was 41%.
YEAR TO DATE 2013 OPERATING
RESULTS OVERVIEW
American Tower generated the following operating results for the nine months ended September 30, 2013 (unless otherwise
indicated, all comparative information is presented against the nine months ended September 30, 2012).
Total revenue increased 14.8% to $2,419.4
million and total rental and management revenue increased 14.5% to $2,363.2 million. Total rental and management revenue Core Growth was approximately 18.9%. Please refer to the selected statement of operations detail on page 13, which highlights
the items affecting all Core Growth percentages for the nine months ended September 30, 2013.
Total rental and management Gross Margin increased
14.0% to $1,789.2 million. Total selling, general, administrative and development expense was $298.7 million, including $52.0 million of stock-based compensation expense. Adjusted EBITDA increased 13.3% to $1,576.2 million, Core Growth in Adjusted
EBITDA was 17.2%, and the Adjusted EBITDA Margin was 65%.
AFFO increased 17.7% to $1,091.4 million, AFFO per Share increased 17.7% to $2.73, and Core
Growth in AFFO was approximately 21.7%.
Operating income increased 9.6% to $921.4 million, while net income attributable to American Tower Corporation
decreased 10.0% to $451.4 million. The decrease was primarily attributable to the Company’s recognition of unrealized non-cash losses of $151.7 million associated with fluctuations in foreign currency exchange rates related to intercompany
loans and similar unaffiliated balances. Net income attributable to American Tower Corporation per basic common share decreased 10.2% to $1.14, and net income attributable to American Tower Corporation per diluted common share decreased 10.3% to
$1.13.
Cash provided by operating activities increased 2.5% to $1,144.4 million.
Segment Results
Domestic Rental and Management
Segment – Domestic rental and management segment revenue increased 8.7% to $1,566.7 million, which represented 65% of total revenues. Domestic rental and management segment Gross Margin increased 10.0% to $1,284.4 million, while
domestic rental and management segment Operating Profit increased 9.6% to $1,212.7 million. Domestic rental and management segment Operating Profit Margin was 77%.
International Rental and Management Segment – International rental and management segment revenue increased 27.9% to $796.5 million,
which represented 33% of total revenues. International rental and management segment Gross Margin increased 25.8% to $504.8 million, while international rental and management segment Operating Profit increased 23.5% to $411.0 million. International
rental and management segment Operating Profit Margin was 52% (70%, excluding the impact of $212.2 million of pass-through revenues).
Network
Development Services Segment – Network development services segment revenue was $56.2 million, which represented 2% of total revenues. Network development services segment Gross Margin was $33.8 million, and network development
services segment Operating Profit was $26.7 million. Network development services segment Operating Profit Margin was 48%.
2
Please refer to “Non-GAAP and Defined Financial Measures” on pages 5 and 6 for definitions of Gross
Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations, Adjusted Funds From Operations, Adjusted Funds From Operations per Share, Core Growth and Net Leverage Ratio. For additional
financial information, including reconciliations to GAAP measures, please refer to the unaudited selected financial information on pages 11 through 14.
INVESTING OVERVIEW
Distributions – On
October 7, 2013, the Company paid its third quarter distribution of $0.28 per share, or a total of approximately $110.5 million, to stockholders of record at the close of business on September 23, 2013.
During the nine months ended September 30, 2013, the Company declared an aggregate of $0.81 per share in distributions, or a total of approximately
$320.0 million, to its stockholders. Subject to the discretion of the Company’s Board of Directors, the Company expects to continue paying regular distributions, the amount and timing of which will be determined by the Board.
Cash Paid for Capital Expenditures – During the third quarter of 2013, total capital expenditures of $167.6 million included $80.7
million for discretionary capital projects, including spending to complete the construction of 48 towers and the installation of 2 distributed antenna system networks and 509 shared generators domestically and the construction of 417 towers and the
installation of 3 distributed antenna system networks internationally; $22.7 million to purchase land under the Company’s communications sites; $7.6 million for start-up capital projects in recently launched markets; $30.0 million for the
redevelopment of existing communications sites to accommodate new tenant equipment; and $26.7 million for capital improvements and corporate capital expenditures.
During the nine months ended September 30, 2013, total capital expenditures of $448.2 million included $210.9 million for discretionary capital projects,
including spending to complete the construction of 192 towers and the installation of 8 distributed antenna system networks and 857 shared generators domestically and the construction of 1,113 towers and the installation of 28 distributed antenna
system networks internationally; $54.5 million to purchase land under the Company’s communications sites; $22.1 million for start-up capital projects in recently launched markets; $75.1 million for the redevelopment of existing communications
sites to accommodate new tenant equipment; and $85.7 million for capital improvements and corporate capital expenditures.
Cash Paid for
Acquisitions – During the third quarter of 2013, the Company spent $54.5 million for the purchase of 3 domestic towers and 513 international towers. The international towers consisted of those acquired pursuant to previously
announced agreements, including 294 towers in Colombia, 189 towers in South Africa and 9 towers in Ghana. In addition, the Company acquired 20 towers in Mexico during the third quarter of 2013.
During the nine months ended September 30, 2013, the Company spent $365.7 million for the purchase of 59 domestic towers and 1,530 international towers.
As previously announced, subsequent to the end of the third quarter of 2013, the Company completed its acquisition of MIP Tower Holdings LLC, a private
real estate investment trust, which is the parent company of Global Tower Partners (GTP) in which it acquired over 5,000 towers, the rights to over 9,000 rooftop sites and over 800 managed towers domestically, and approximately 550 towers in Central
America. As consideration for the acquisition, American Tower assumed approximately $1.5 billion of existing GTP debt and paid approximately $3.3 billion in cash.
During the third quarter, the Company entered into an agreement with NII Holdings, Inc. to acquire up to 2,790 communications sites in Brazil and 1,666
communications sites in Mexico in two separate transactions, for approximately 945 million Brazilian Reais (approximately $423.8 million) and 5,025 million Mexican Pesos (approximately $382.3 million), respectively.
In addition, during the third quarter, the Company entered into an agreement to acquire up to 236 communications sites in Brazil for an aggregate purchase
price of up to approximately 283 million Brazilian Reais (approximately $127.1 million), which are expected to close during the first quarter of 2014.
Stock Repurchase Program – During the third quarter of 2013, the Company repurchased a total of approximately 1.0 million shares of
its common stock for approximately $70.4 million pursuant to its stock repurchase program. On September 6, 2013, the Company temporarily suspended repurchases following the signing of its agreement to acquire GTP.
During the nine months ended September 30, 2013, the Company repurchased a total of approximately 1.9 million shares of its common stock for
approximately $145.0 million pursuant to its stock repurchase program.
FINANCING OVERVIEW
Leverage – For the quarter ended September 30, 2013, the Company’s Net Leverage Ratio was approximately 4.1x net debt
(total debt less cash and cash equivalents) to third quarter 2013 annualized Adjusted EBITDA. On October 1, 2013, the Company’s Net Leverage Ratio increased as a result of its acquisition of GTP.
3
Liquidity – As of September 30, 2013, the Company had approximately $5.2 billion
of total liquidity, comprised of approximately $4.0 billion in cash and cash equivalents, plus the ability to borrow an aggregate of approximately $1.2 billion under its revolving credit facilities, net of any outstanding letters of credit. On
October 1, 2013, the Company utilized $3.3 billion of its cash on hand to fund the acquisition of GTP.
Subsequent to the end of the third quarter of
2013, the Company entered into a new $1.5 billion term loan, the proceeds of which, along with cash on hand, were used to repay its existing $750 million 2012 term loan and $800 million under its 2012 revolving credit facility. As a result, the
Company’s total liquidity was approximately $2.6 billion as of October 30, 2013.
FULL YEAR 2013 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 30, 2013. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking” statements included in this press release
when considering this information.
As reflected in the table below, the Company has raised the midpoint of its full year 2013 outlook for total rental
and management revenue by $80 million, Adjusted EBITDA by $55 million and AFFO by $10 million. These estimates include the impact of the Company’s acquisition of sites from GTP, which closed on October 1, 2013 and the Company’s
pending acquisition of sites from NII Holdings in Mexico, which is scheduled to close in November 2013.
The Company’s outlook is based on the
following average foreign currency exchange rates to 1.00 U.S. Dollar for the fourth quarter of 2013: (a) 2.25 Brazilian Reais; (b) 505.00 Chilean Pesos; (c) 1,900.00 Colombian Pesos; (d) 0.75 Euros; (e) 2.15 Ghanaian
Cedi; (f) 63.00 Indian Rupees; (g) 12.90 Mexican Pesos; (h) 2.75 Peruvian Soles; (i) 10.00 South African Rand; and (j) 2,550.00 Ugandan Schillings.
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| ($ in millions) |
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Full Year 2013 |
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Midpoint
Growth |
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Midpoint Core
Growth |
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| Total rental and management revenue |
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$ |
3,250 |
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to |
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$ |
3,280 |
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16.5 |
% |
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21.2 |
% |
| Adjusted EBITDA(1) |
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$ |
2,150 |
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to |
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$ |
2,180 |
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14.4 |
% |
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19.4 |
% |
| Adjusted Funds From Operations(1) |
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$ |
1,455 |
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to |
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$ |
1,475 |
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19.8 |
% |
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22.4 |
% |
| Net Income |
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$ |
580 |
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to |
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$ |
620 |
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1.0 |
% |
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N/A |
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(1) |
See “Non-GAAP and Defined Financial Measures” below. |
The Company’s outlook for total rental
and management revenue reflects the following at the midpoint: (1) domestic rental and management segment revenue of $2,180 million; and (2) international rental and management segment revenue of $1,085 million, which includes
approximately $286 million of pass-through revenue.
The calculation of midpoint Core Growth is as follows:
(Totals may not add due to rounding.)
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Total Rental and
Management
Revenue |
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Adjusted
EBITDA |
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AFFO |
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| Outlook midpoint Core Growth |
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21.2 |
% |
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19.4 |
% |
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22.4 |
% |
| Estimated impact of fluctuations in foreign currency exchange rates |
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(2.1 |
)% |
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(1.4 |
)% |
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(1.9 |
)% |
| Impact of straight-line revenue and expense recognition |
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(1.9 |
)% |
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(2.4 |
)% |
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— |
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| Impact of significant one-time items |
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(0.7 |
)% |
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(1.1 |
)% |
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(0.6 |
)% |
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| Outlook midpoint growth |
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16.5 |
% |
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14.4 |
% |
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19.8 |
% |
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Outlook for Capital Expenditures:
($ in millions)
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| (Totals may not add due to rounding.) |
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Full Year 2013 |
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| Discretionary capital projects(1) |
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$ |
305 |
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to |
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$ |
315 |
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| Ground lease purchases |
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85 |
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to |
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105 |
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| Start-up capital projects |
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20 |
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— |
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20 |
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| Redevelopment |
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100 |
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to |
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110 |
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| Capital improvement(2) |
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85 |
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to |
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95 |
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| Corporate |
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30 |
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— |
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30 |
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| Total |
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$ |
625 |
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to |
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$ |
675 |
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(1) |
Includes the construction of approximately 1,900 to 2,100 new communications sites. |
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(2) |
Includes spending related to a lighting system upgrade in the U.S. of approximately $15 million. |
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Reconciliations of Outlook for Net Income to Adjusted EBITDA:
($ in millions)
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| (Totals may not add due to rounding.) |
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Full Year 2013 |
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| Net income |
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$ |
580 |
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to |
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$ |
620 |
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| Interest expense |
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465 |
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to |
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455 |
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| Depreciation, amortization and accretion |
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805 |
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to |
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785 |
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| Income tax provision |
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30 |
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to |
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40 |
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| Stock-based compensation expense |
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65 |
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to |
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70 |
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| Other, including other operating expenses, interest income, loss on retirement of long-term obligations, (income) loss on equity method
investments and other (income) expense |
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205 |
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to |
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210 |
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| Adjusted EBITDA |
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$ |
2,150 |
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to |
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$ |
2,180 |
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Reconciliations of Outlook for Net Income to Adjusted Funds From Operations:
($ in millions)
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| (Totals may not add due to rounding.) |
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Full Year 2013 |
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| Net income |
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$ |
580 |
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to |
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$ |
620 |
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| Straight-line revenue |
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(144 |
) |
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— |
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(144 |
) |
| Straight-line expense |
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33 |
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— |
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33 |
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| Depreciation, amortization and accretion |
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805 |
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to |
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785 |
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| Stock-based compensation expense |
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65 |
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to |
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70 |
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| Non-cash portion of tax provision |
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(12 |
) |
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— |
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(12 |
) |
| Other, including other operating expenses, interest expense, amortization of deferred financing costs, capitalized interest, debt
discounts and premiums and long-term deferred interest charges, loss on retirement of long-term obligations, other (income) expense and non-cash interest related to joint venture shareholder loans |
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243 |
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to |
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248 |
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| Capital improvement capital expenditures |
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(85 |
) |
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to |
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(95 |
) |
| Corporate capital expenditures |
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(30 |
) |
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— |
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(30 |
) |
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| Adjusted Funds From Operations |
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$ |
1,455 |
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to |
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$ |
1,475 |
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Conference Call Information
American Tower will host a conference call today at 8:30 a.m. ET to discuss its financial results for the third quarter and nine months ended
September 30, 2013 and its full year 2013 outlook. Supplemental materials for the call will be available on the Company’s website, www.americantower.com. The conference call dial-in numbers are as follows:
U.S./Canada dial-in: (866) 740-9153
International dial-in: (706) 645-9644
Passcode: 87346738
When
available, a replay of the call can be accessed until 11:59 p.m. ET on November 13, 2013. The replay dial-in numbers are as follows:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
Passcode: 87346738
American
Tower will also sponsor a live simulcast and replay of the call on its website, www.americantower.com.
About American Tower
American Tower is a leading independent owner, operator and developer of wireless and broadcast communications real estate. American Tower currently owns and
operates over 61,000 communications sites in the United States, Brazil, Chile, Colombia, Costa Rica, Germany, Ghana, India, Mexico, Panama, Peru, South Africa and Uganda. 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 with generally accepted accounting principles in the United States (GAAP) provided throughout this press
release, the Company has presented the following non-GAAP and defined financial measures: Gross Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations, Adjusted Funds From Operations,
Adjusted Funds From Operations per Share, Core Growth and Net Leverage Ratio. The Company uses Funds From Operations as defined by the National Association of Real Estate Investment Trusts (NAREIT), referred to herein as NAREIT Funds From
Operations.
5
The Company defines Gross Margin as revenues less operating expenses, excluding stock-based compensation expense
recorded in costs of operations, depreciation, amortization and accretion, selling, general, administrative and development expense, and other operating expenses. The Company defines Operating Profit as Gross Margin less selling, general,
administrative and development expense, excluding stock-based compensation expense and corporate expenses. For reporting purposes, the international rental and management segment Operating Profit and Gross Margin also include interest income, TV
Azteca, net. These measures of Gross Margin and Operating Profit are also before interest income, interest expense, loss on retirement of long-term obligations, other income (expense), net income attributable to non-controlling interest, income
(loss) on equity method investments and income taxes. The Company defines Operating Profit Margin as the percentage that results from dividing Operating Profit by revenue. The Company defines Adjusted EBITDA as net income before income (loss) from
discontinued operations, net, income (loss) from equity method investments, income tax provision (benefit), other (income) expense, loss on retirement of long-term obligations, interest expense, interest income, other operating income (expenses),
depreciation, amortization and accretion and stock-based compensation expense. The Company defines Adjusted EBITDA Margin as the percentage that results from dividing Adjusted EBITDA by total revenue. NAREIT Funds From Operations is defined as net
income before gains or losses from the sale or disposal of real estate, real estate related impairment charges and real estate related depreciation, amortization and accretion, and including adjustments for (i) unconsolidated affiliates and
(ii) noncontrolling interest. The Company defines Adjusted Funds From Operations as NAREIT Funds From Operations before (i) straight-line revenue and expense, (ii) stock-based compensation expense, (iii) the non-cash portion of
our tax provision, (iv) non-real estate related depreciation, amortization and accretion, (v) amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges,
(vi) other (income) expense, (vii) loss on retirement of long-term obligations, (viii) other operating (income) expense, and adjusted for (ix) unconsolidated affiliates, and (x) noncontrolling interest, less cash payments
related to capital improvements and cash payments related to corporate capital expenditures. The Company defines Adjusted Funds From Operations per Share as Adjusted Funds From Operations divided by the diluted weighted average common shares
outstanding. The Company defines Core Growth in total rental and management revenue, Adjusted EBITDA and Adjusted Funds From Operations as the increase or decrease, expressed as a percentage, resulting from a comparison of financial results for a
current period with corresponding financial results for the corresponding period in a prior year, in each case, excluding the impact of straight-line revenue and expense recognition, foreign currency exchange rate fluctuations and significant
one-time items. The Company defines Net Leverage Ratio as net debt (total debt, less cash and cash equivalents) divided by last quarter annualized Adjusted EBITDA. These measures are not intended to replace financial performance measures determined
in accordance with GAAP. Rather, they are presented as additional information because management believes they are useful indicators of the current financial performance of the Company’s core businesses. The Company believes that these measures
can assist in comparing company performances on a consistent basis irrespective of depreciation and amortization or capital structure. 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 Gross Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA
Margin, NAREIT Funds From Operations, Adjusted Funds From Operations, Adjusted Funds From Operations per Share, Core Growth and Net Leverage Ratio may not be comparable to similarly titled measures used by other companies.
Cautionary Language Regarding Forward-Looking Statements
This press release contains “forward-looking statements” 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 statements regarding our full year 2013 outlook, foreign currency exchange
rates and our expectation regarding the declaration of regular distributions. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) decrease in
demand for our communications sites would materially and adversely affect our operating results and we cannot control that demand; (2) new technologies or changes in a tenant’s business model could make our tower leasing business less
desirable and result in decreasing revenues; (3) our business is subject to government regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (4) if our
tenants consolidate, merge or share site infrastructure with each other to a significant degree, our growth, revenue and ability to generate positive cash flows could be materially and adversely affected; (5) we could suffer adverse tax or
other financial consequences if taxing authorities do not agree with our tax positions; (6) our expansion initiatives involve a number of risks and uncertainties that could adversely affect our operating results, disrupt our operations or
expose us to additional risk if we are not able to successfully integrate operations, assets and personnel; (7) our foreign operations are subject to economic, political and other risks that could materially and adversely affect our revenues or
financial position, including risks associated with fluctuations in foreign currency exchange rates; (8) our leverage and debt service obligations may materially and adversely affect us; (9) we may fail to realize the growth prospects and cost
savings anticipated as a result of our acquisition of GTP; (10) we will incur significant transaction and acquisition-related integration costs in connection with the acquisition of GTP; (11) a substantial portion of our revenue is derived from
a small number of tenants, and we are sensitive to changes in the creditworthiness and financial strength of our tenants; (12) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and
operating results; (13) increasing competition in the tower industry may create pricing pressures that may materially and adversely affect us; (14) if we are unable or choose not to exercise our rights to purchase towers that are subject
to lease and sublease agreements at the end of the applicable period, our cash flows derived from such towers would be eliminated; (15) if we fail to remain qualified as a REIT, we would be subject to tax at corporate income tax rates, which
would substantially reduce funds otherwise available; (16) we may be limited in our ability to fund required distributions using cash generated through our TRSs; (17) complying with REIT requirements may limit our flexibility or cause us
to forego otherwise attractive opportunities; (18) certain of our business activities may be subject to corporate level income tax and foreign taxes, which reduce our cash flows, and may have deferred and contingent tax liabilities;
(19) we may need additional financing to fund capital expenditures, future growth and expansion initiatives and to satisfy our REIT distribution requirements; (20) restrictive covenants in the Loan Agreement related to our Securitization
and indentures related to the GTP Securitization, the loan agreements for our credit facilities and the indentures governing our debt securities could materially and adversely affect our business by limiting flexibility; (21) we may incur
goodwill and other intangible asset impairment charges which could result in a significant reduction to our earnings; (22) we have limited experience operating as a REIT, which may adversely affect our financial condition, results of
operations, cash flow and ability to satisfy debt service obligations; (23) we could have liability under environmental and occupational safety and health laws; (24) our towers or data centers may be affected by natural disasters and other
unforeseen events for which our insurance may not provide adequate coverage; (25) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are
substantiated. For additional information regarding 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 June 30, 2013. We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
6
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2013 |
|
|
December 31, 2012(1) |
|
| ASSETS |
|
|
|
|
|
|
|
|
| CURRENT ASSETS: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
4,040,353 |
|
|
$ |
368,618 |
|
| Restricted cash |
|
|
132,019 |
|
|
|
69,316 |
|
| Short-term investments |
|
|
27,381 |
|
|
|
6,018 |
|
| Accounts receivable, net |
|
|
152,560 |
|
|
|
143,772 |
|
| Prepaid and other current assets |
|
|
365,792 |
|
|
|
222,999 |
|
| Deferred income taxes |
|
|
23,931 |
|
|
|
25,754 |
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
4,742,036 |
|
|
|
836,477 |
|
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
5,878,826 |
|
|
|
5,766,150 |
|
| Goodwill |
|
|
2,815,271 |
|
|
|
2,842,717 |
|
| Other intangible assets, net |
|
|
3,195,106 |
|
|
|
3,205,496 |
|
| Deferred income taxes |
|
|
219,373 |
|
|
|
209,589 |
|
| Deferred rent asset |
|
|
878,124 |
|
|
|
776,201 |
|
| Notes receivable and other non-current assets |
|
|
452,584 |
|
|
|
452,788 |
|
|
|
|
|
|
|
|
|
|
| TOTAL |
|
$ |
18,181,320 |
|
|
$ |
14,089,418 |
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
90,845 |
|
|
$ |
89,578 |
|
| Accrued expenses |
|
|
331,311 |
|
|
|
286,962 |
|
| Distributions payable |
|
|
110,937 |
|
|
|
189 |
|
| Accrued interest |
|
|
84,528 |
|
|
|
71,271 |
|
| Current portion of long-term obligations |
|
|
67,276 |
|
|
|
60,031 |
|
| Unearned revenue |
|
|
138,422 |
|
|
|
124,147 |
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
823,319 |
|
|
|
632,178 |
|
|
|
|
|
|
|
|
|
|
| Long-term obligations |
|
|
12,578,532 |
|
|
|
8,693,345 |
|
| Asset retirement obligations |
|
|
461,586 |
|
|
|
435,613 |
|
| Other non-current liabilities |
|
|
705,966 |
|
|
|
644,101 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
14,569,403 |
|
|
|
10,405,237 |
|
|
|
|
|
|
|
|
|
|
| COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
| EQUITY: |
|
|
|
|
|
|
|
|
| Common stock |
|
|
3,973 |
|
|
|
3,959 |
|
| Additional paid-in capital |
|
|
5,097,325 |
|
|
|
5,012,124 |
|
| Distributions in excess of earnings |
|
|
(1,066,580 |
) |
|
|
(1,196,907 |
) |
| Accumulated other comprehensive loss |
|
|
(298,015 |
) |
|
|
(183,347 |
) |
| Treasury stock |
|
|
(207,740 |
) |
|
|
(62,728 |
) |
|
|
|
|
|
|
|
|
|
| Total American Tower Corporation equity |
|
|
3,528,963 |
|
|
|
3,573,101 |
|
| Noncontrolling interest |
|
|
82,954 |
|
|
|
111,080 |
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
3,611,917 |
|
|
|
3,684,181 |
|
|
|
|
|
|
|
|
|
|
| TOTAL |
|
$ |
18,181,320 |
|
|
$ |
14,089,418 |
|
|
|
|
|
|
|
|
|
|
| (1) |
December 31, 2012 balances have been revised to reflect purchase accounting measurement period adjustments. |
7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental and management |
|
$ |
796,575 |
|
|
$ |
697,554 |
|
|
$ |
2,363,207 |
|
|
$ |
2,063,806 |
|
| Network development services |
|
|
11,305 |
|
|
|
15,781 |
|
|
|
56,231 |
|
|
|
43,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating revenues |
|
|
807,880 |
|
|
|
713,335 |
|
|
|
2,419,438 |
|
|
|
2,107,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs of operations (exclusive of items shown separately below): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental and management (including stock-based compensation expense of $248, $195, $751 and $594, respectively) |
|
|
195,953 |
|
|
|
177,336 |
|
|
|
585,465 |
|
|
|
506,120 |
|
| Network development services (including stock-based compensation expense of $99, $245, $440 and $749, respectively) |
|
|
4,876 |
|
|
|
7,568 |
|
|
|
22,839 |
|
|
|
22,153 |
|
| Depreciation, amortization and accretion |
|
|
184,922 |
|
|
|
144,061 |
|
|
|
555,334 |
|
|
|
465,788 |
|
| Selling, general, administrative and development expense (including stock-based compensation expense of $14,711, $12,618, $51,964 and
$38,311, respectively) |
|
|
97,781 |
|
|
|
81,459 |
|
|
|
298,737 |
|
|
|
237,891 |
|
| Other operating expenses |
|
|
15,469 |
|
|
|
7,359 |
|
|
|
35,686 |
|
|
|
35,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
499,001 |
|
|
|
417,783 |
|
|
|
1,498,061 |
|
|
|
1,267,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OPERATING INCOME |
|
|
308,879 |
|
|
|
295,552 |
|
|
|
921,377 |
|
|
|
840,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income, TV Azteca, net |
|
|
3,544 |
|
|
|
3,586 |
|
|
|
10,673 |
|
|
|
10,715 |
|
| Interest income |
|
|
2,342 |
|
|
|
1,717 |
|
|
|
5,468 |
|
|
|
6,253 |
|
| Interest expense |
|
|
(106,335 |
) |
|
|
(102,272 |
) |
|
|
(318,916 |
) |
|
|
(297,622 |
) |
| Loss on retirement of long-term obligations |
|
|
— |
|
|
|
— |
|
|
|
(37,967 |
) |
|
|
(398 |
) |
| Other (expense) income (including unrealized foreign currency (losses) gains of $(30,907), $46,191, $(151,673), and $(12,847),
respectively) |
|
|
(29,622 |
) |
|
|
46,294 |
|
|
|
(148,991 |
) |
|
|
(19,468 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total other expense |
|
|
(130,071 |
) |
|
|
(50,675 |
) |
|
|
(489,733 |
) |
|
|
(300,520 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INCOME ON EQUITY METHOD INVESTMENTS |
|
|
178,808 |
|
|
|
244,877 |
|
|
|
431,644 |
|
|
|
539,964 |
|
| Income tax provision |
|
|
(15,586 |
) |
|
|
(13,054 |
) |
|
|
(23,361 |
) |
|
|
(64,117 |
) |
| Income on equity method investments |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME |
|
|
163,222 |
|
|
|
231,825 |
|
|
|
408,283 |
|
|
|
475,872 |
|
| Net loss attributable to noncontrolling interest |
|
|
16,901 |
|
|
|
264 |
|
|
|
43,068 |
|
|
|
25,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION |
|
$ |
180,123 |
|
|
$ |
232,089 |
|
|
$ |
451,351 |
|
|
$ |
501,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME PER COMMON SHARE AMOUNTS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic net income attributable to American Tower Corporation |
|
$ |
0.46 |
|
|
$ |
0.59 |
|
|
$ |
1.14 |
|
|
$ |
1.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted net income attributable to American Tower Corporation |
|
$ |
0.45 |
|
|
$ |
0.58 |
|
|
$ |
1.13 |
|
|
$ |
1.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
394,759 |
|
|
|
395,244 |
|
|
|
395,138 |
|
|
|
394,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
|
398,348 |
|
|
|
399,487 |
|
|
|
399,275 |
|
|
|
399,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DISTRIBUTIONS DECLARED PER SHARE |
|
$ |
0.28 |
|
|
$ |
0.23 |
|
|
$ |
0.81 |
|
|
$ |
0.66 |
|
8
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
408,283 |
|
|
$ |
475,872 |
|
| Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
53,155 |
|
|
|
39,654 |
|
| Depreciation, amortization and accretion |
|
|
555,334 |
|
|
|
465,788 |
|
| Loss on early retirement of securitized debt |
|
|
35,288 |
|
|
|
— |
|
| Other non-cash items reflected in statements of operations |
|
|
164,406 |
|
|
|
79,655 |
|
| Increase in net deferred rent asset |
|
|
(83,694 |
) |
|
|
(92,296 |
) |
| Increase in restricted cash |
|
|
(62,703 |
) |
|
|
(693 |
) |
| Increase in assets |
|
|
(59,267 |
) |
|
|
(36,137 |
) |
| Increase in liabilities |
|
|
133,641 |
|
|
|
184,704 |
|
|
|
|
|
|
|
|
|
|
| Cash provided by operating activities |
|
|
1,144,443 |
|
|
|
1,116,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Payments for purchase of property and equipment and construction activities |
|
|
(448,249 |
) |
|
|
(377,026 |
) |
| Payments for acquisitions, net of cash acquired |
|
|
(365,658 |
) |
|
|
(822,714 |
) |
| Proceeds from sale of short-term investments and other non-current assets |
|
|
27,889 |
|
|
|
358,707 |
|
| Payments for short-term investments |
|
|
(50,224 |
) |
|
|
(330,341 |
) |
| Deposits, restricted cash, investments and other |
|
|
(122,396 |
) |
|
|
(2,892 |
) |
|
|
|
|
|
|
|
|
|
| Cash used for investing activities |
|
|
(958,638 |
) |
|
|
(1,174,266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
| Proceeds from short-term borrowings, net |
|
|
7,544 |
|
|
|
20,099 |
|
| Borrowings under credit facilities |
|
|
3,507,000 |
|
|
|
1,325,000 |
|
| Proceeds from issuance of senior notes, net |
|
|
2,221,792 |
|
|
|
698,670 |
|
| Proceeds from issuance of Securities in securitization transaction, net |
|
|
1,778,496 |
|
|
|
— |
|
| Proceeds from term loan credit facility |
|
|
— |
|
|
|
750,000 |
|
| Proceeds from other long-term borrowings |
|
|
27,971 |
|
|
|
99,132 |
|
| Repayments of notes payable, credit facilities and capital leases |
|
|
(3,705,454 |
) |
|
|
(2,655,367 |
) |
| Contributions from noncontrolling interest holders, net |
|
|
17,584 |
|
|
|
48,500 |
|
| Purchases of common stock |
|
|
(145,012 |
) |
|
|
(16,733 |
) |
| Proceeds from stock options |
|
|
32,973 |
|
|
|
42,825 |
|
| Distributions |
|
|
(209,711 |
) |
|
|
(169,816 |
) |
| Payment for early retirement of securitized debt |
|
|
(29,234 |
) |
|
|
— |
|
| Deferred financing costs and other financing activities |
|
|
(9,190 |
) |
|
|
(30,215 |
) |
|
|
|
|
|
|
|
|
|
| Cash provided by financing activities |
|
|
3,494,759 |
|
|
|
112,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net effect of changes in foreign currency exchange rates on cash and cash equivalents |
|
|
(8,829 |
) |
|
|
(2,255 |
) |
| NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
3,671,735 |
|
|
|
52,121 |
|
|
|
|
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
368,618 |
|
|
|
330,191 |
|
|
|
|
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
|
4,040,353 |
|
|
|
382,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH PAID FOR INCOME TAXES, NET OF REFUNDS |
|
$ |
23,172 |
|
|
$ |
28,465 |
|
|
|
|
|
|
|
|
|
|
| CASH PAID FOR INTEREST |
|
$ |
283,145 |
|
|
$ |
265,443 |
|
|
|
|
|
|
|
|
|
|
9
UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended September 30,
2013 |
|
| |
|
Rental and Management |
|
|
Network
Development
Services |
|
|
Total |
|
| |
|
Domestic |
|
|
International |
|
|
Total |
|
|
|
| Segment revenues |
|
$ |
529,941 |
|
|
$ |
266,634 |
|
|
$ |
796,575 |
|
|
$ |
11,305 |
|
|
$ |
807,880 |
|
| Segment operating expenses(1) |
|
|
95,232 |
|
|
|
100,473 |
|
|
|
195,705 |
|
|
|
4,777 |
|
|
|
200,482 |
|
| Interest income, TV Azteca, net |
|
|
— |
|
|
|
3,544 |
|
|
|
3,544 |
|
|
|
— |
|
|
|
3,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Gross Margin |
|
|
434,709 |
|
|
|
169,705 |
|
|
|
604,414 |
|
|
|
6,528 |
|
|
|
610,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment selling, general, administrative and development expense(1) |
|
|
24,523 |
|
|
|
31,728 |
|
|
|
56,251 |
|
|
|
1,880 |
|
|
|
58,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit |
|
$ |
410,186 |
|
|
$ |
137,977 |
|
|
$ |
548,163 |
|
|
$ |
4,648 |
|
|
$ |
552,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit Margin |
|
|
77 |
% |
|
|
52 |
% |
|
|
69 |
% |
|
|
41 |
% |
|
|
68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended September 30,
2012 |
|
| |
|
Rental and Management |
|
|
Network
Development
Services |
|
|
Total |
|
| |
|
Domestic |
|
|
International |
|
|
Total |
|
|
|
| Segment revenues |
|
$ |
480,351 |
|
|
$ |
217,203 |
|
|
$ |
697,554 |
|
|
$ |
15,781 |
|
|
$ |
713,335 |
|
| Segment operating expenses(1) |
|
|
92,072 |
|
|
|
85,069 |
|
|
|
177,141 |
|
|
|
7,323 |
|
|
|
184,464 |
|
| Interest income, TV Azteca, net |
|
|
— |
|
|
|
3,586 |
|
|
|
3,586 |
|
|
|
— |
|
|
|
3,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Gross Margin |
|
|
388,279 |
|
|
|
135,720 |
|
|
|
523,999 |
|
|
|
8,458 |
|
|
|
532,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment selling, general, administrative and development expense(1) |
|
|
20,141 |
|
|
|
25,057 |
|
|
|
45,198 |
|
|
|
2,127 |
|
|
|
47,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit |
|
$ |
368,138 |
|
|
$ |
110,663 |
|
|
$ |
478,801 |
|
|
$ |
6,331 |
|
|
$ |
485,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit Margin |
|
|
77 |
% |
|
|
51 |
% |
|
|
69 |
% |
|
|
40 |
% |
|
|
68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine months ended September 30,
2013 |
|
| |
|
Rental and Management |
|
|
Network
Development
Services |
|
|
Total |
|
| |
|
Domestic |
|
|
International |
|
|
Total |
|
|
|
| Segment revenues |
|
$ |
1,566,660 |
|
|
$ |
796,547 |
|
|
$ |
2,363,207 |
|
|
$ |
56,231 |
|
|
$ |
2,419,438 |
|
| Segment operating expenses(1) |
|
|
282,273 |
|
|
|
302,441 |
|
|
|
584,714 |
|
|
|
22,399 |
|
|
|
607,113 |
|
| Interest income, TV Azteca, net |
|
|
— |
|
|
|
10,673 |
|
|
|
10,673 |
|
|
|
— |
|
|
|
10,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Gross Margin |
|
|
1,284,387 |
|
|
|
504,779 |
|
|
|
1,789,166 |
|
|
|
33,832 |
|
|
|
1,822,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment selling, general, administrative and development expense(1) |
|
|
71,664 |
|
|
|
93,753 |
|
|
|
165,417 |
|
|
|
7,105 |
|
|
|
172,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit |
|
$ |
1,212,723 |
|
|
$ |
411,026 |
|
|
$ |
1,623,749 |
|
|
$ |
26,727 |
|
|
$ |
1,650,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit Margin |
|
|
77 |
% |
|
|
52 |
% |
|
|
69 |
% |
|
|
48 |
% |
|
|
68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine months ended September 30,
2012 |
|
| |
|
Rental and Management |
|
|
Network
Development
Services |
|
|
Total |
|
| |
|
Domestic |
|
|
International |
|
|
Total |
|
|
|
| Segment revenues |
|
$ |
1,440,824 |
|
|
$ |
622,982 |
|
|
$ |
2,063,806 |
|
|
$ |
43,780 |
|
|
$ |
2,107,586 |
|
| Segment operating expenses(1) |
|
|
273,188 |
|
|
|
232,338 |
|
|
|
505,526 |
|
|
|
21,404 |
|
|
|
526,930 |
|
| Interest income, TV Azteca, net |
|
|
— |
|
|
|
10,715 |
|
|
|
10,715 |
|
|
|
— |
|
|
|
10,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Gross Margin |
|
|
1,167,636 |
|
|
|
401,359 |
|
|
|
1,568,995 |
|
|
|
22,376 |
|
|
|
1,591,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment selling, general, administrative and development expense(1) |
|
|
60,638 |
|
|
|
68,433 |
|
|
|
129,071 |
|
|
|
4,410 |
|
|
|
133,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit |
|
$ |
1,106,998 |
|
|
$ |
332,926 |
|
|
$ |
1,439,924 |
|
|
$ |
17,966 |
|
|
$ |
1,457,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Operating Profit Margin |
|
|
77 |
% |
|
|
53 |
% |
|
|
70 |
% |
|
|
41 |
% |
|
|
69 |
% |
| (1) |
Excludes stock-based compensation expense. |
10
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to rounding.)
SELECTED BALANCE SHEET DETAIL:
|
|
|
|
|
|
|
|
|
| Long-term obligations summary, including current portion |
|
September 30, 2013 |
|
|
September 30, 2013
Pro Forma(1) |
|
| 2012 Credit Facility(2) |
|
$ |
963,000 |
|
|
$ |
163,000 |
|
| 2013 Credit Facility |
|
|
1,853,000 |
|
|
|
1,853,000 |
|
| 2012 Term Loan |
|
|
750,000 |
|
|
|
— |
|
| 2013 Term Loan(2) |
|
|
— |
|
|
|
1,500,000 |
|
| 4.625% Senior Notes due 2015 |
|
|
599,754 |
|
|
|
599,754 |
|
| 7.000% Senior Notes due 2017 |
|
|
500,000 |
|
|
|
500,000 |
|
| 4.500% Senior Notes due 2018 |
|
|
999,493 |
|
|
|
999,493 |
|
| 3.400% Senior Notes due 2019 |
|
|
749,346 |
|
|
|
749,346 |
|
| 7.250% Senior Notes due 2019 |
|
|
296,626 |
|
|
|
296,626 |
|
| 5.050% Senior Notes due 2020 |
|
|
699,393 |
|
|
|
699,393 |
|
| 5.900% Senior Notes due 2021 |
|
|
499,399 |
|
|
|
499,399 |
|
| 4.700% Senior Notes due 2022 |
|
|
698,842 |
|
|
|
698,842 |
|
| 3.500% Senior Notes due 2023 |
|
|
992,347 |
|
|
|
992,347 |
|
| 5.000% Senior Notes due 2024 |
|
|
499,445 |
|
|
|
499,445 |
|
|
|
|
|
|
|
|
|
|
| Total unsecured debt at American Tower Corporation |
|
$ |
10,100,645 |
|
|
$ |
10,050,645 |
|
|
|
|
|
|
|
|
|
|
| Secured Tower Revenue Securities, Series 2013-1A |
|
|
500,000 |
|
|
|
500,000 |
|
| Secured Tower Revenue Securities, Series 2013-2A |
|
|
1,300,000 |
|
|
|
1,300,000 |
|
| GTP Securitizations(3) |
|
|
— |
|
|
|
1,543,586 |
|
| Unison Notes(4) |
|
|
205,874 |
|
|
|
205,874 |
|
| South African Facility(5) |
|
|
94,798 |
|
|
|
94,798 |
|
| Colombian long-term credit facility(5) |
|
|
70,509 |
|
|
|
70,509 |
|
| Colombian bridge loans(5) |
|
|
56,415 |
|
|
|
56,415 |
|
| GTP Costa Rica loan(6) |
|
|
— |
|
|
|
32,600 |
|
| Shareholder loans(7) |
|
|
251,667 |
|
|
|
251,667 |
|
| Indian Working Capital Facility |
|
|
— |
|
|
|
— |
|
| Capital leases |
|
|
65,900 |
|
|
|
65,900 |
|
|
|
|
|
|
|
|
|
|
| Total secured or subsidiary debt |
|
$ |
2,545,163 |
|
|
$ |
4,121,349 |
|
|
|
|
|
|
|
|
|
|
| Total debt |
|
$ |
12,645,808 |
|
|
$ |
14,171,994 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
4,040,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net debt (total debt less cash and cash equivalents) |
|
$ |
8,605,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) |
Pro Forma for the close of the acquisition of GTP and the close of the 2013 Term Loan. |
| |
(2) |
On October 29, 2013, the Company used net proceeds from borrowings under the 2013 Term Loan and cash on hand to repay the 2012 Term Loan and $800 million under the 2012 Credit Facility. |
| |
(3) |
The GTP Securitizations were assumed in connection with the acquisition of GTP and include approximately $1.5 billion of existing indebtedness from GTP and a fair value adjustment of approximately $53.0 million.
|
| |
(4) |
The Unison Notes are secured debt and were assumed as a result of the acquisition of certain legal entities holding a portfolio of property interests from Unison Holdings LLC and Unison Site Management II, L.L.C.
|
| |
(5) |
Denominated in local currency. |
| |
(6) |
The GTP Costa Rica loan was assumed in connection with the acquisition of GTP and is denominated in USD. |
| |
(7) |
Denominated in USD, reflects balances attributable to minority shareholder loans in the Company’s joint ventures in Colombia, Ghana and Uganda. |
|
|
|
|
|
| Calculation of Net Leverage Ratio ($ in thousands) |
|
September 30, 2013 |
|
| Total debt |
|
$ |
12,645,808 |
|
| Cash and cash equivalents |
|
|
4,040,353 |
|
|
|
|
|
|
| Numerator: net debt (total debt less cash and cash equivalents) |
|
$ |
8,605,455 |
|
|
|
| Adjusted EBITDA |
|
$ |
527,872 |
|
| Denominator: annualized Adjusted EBITDA |
|
|
2,111,488 |
|
|
|
|
|
|
| Net Leverage Ratio(1) |
|
|
4.1x |
|
|
|
|
|
|
| |
(1) |
Subsequent to the end of the third quarter of 2013, the Company utilized $3.3 billion of cash on hand to fund the acquisition of GTP and assumed $1.5 billion of existing indebtedness from GTP. As a result, the
Company’s Net Leverage Ratio increased. |
11
UNAUDITED SELECTED FINANCIAL INFORMATION
(In thousands, except where noted. Totals may not add due to rounding.)
SELECTED BALANCE SHEET DETAIL (CONTINUED):
|
|
|
|
|
|
|
|
|
| Share count rollforward: (in millions of shares) |
|
Three Months Ended
September 30, 2013 |
|
|
Nine Months Ended
September 30, 2013 |
|
| Total common shares, beginning of period |
|
|
395.1 |
|
|
|
395.1 |
|
| Common shares repurchased |
|
|
(1.0 |
) |
|
|
(1.9 |
) |
| Common shares issued |
|
|
0.4 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
| Total common shares outstanding, end of period(1) |
|
|
394.5 |
|
|
|
394.5 |
|
|
|
|
|
|
|
|
|
|
| |
(1) |
As of September 30, 2013, excludes (a) 3.5 million potentially dilutive shares associated with vested and exercisable stock options with an average exercise price of $40.05 per share,
(b) 2.9 million potentially dilutive shares associated with unvested stock options, and (c) 1.8 million potentially dilutive shares associated with unvested restricted stock units. |
SELECTED STATEMENT OF OPERATIONS DETAIL:
Total rental
and management straight-line revenue and expense (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| Total rental and management operations straight-line revenue |
|
$ |
37,286 |
|
|
$ |
40,986 |
|
|
$ |
105,968 |
|
|
$ |
118,545 |
|
| Total rental and management operations straight-line expense |
|
$ |
6,293 |
|
|
$ |
8,118 |
|
|
$ |
21,319 |
|
|
$ |
26,147 |
|
| |
(1) |
In accordance with GAAP, the Company recognizes consolidated rental and management revenue and expense related to non-cancellable customer and ground lease agreements with fixed escalations on a straight-line basis,
over the applicable lease term. As a result, the Company’s revenue recognized may differ materially from the amount of cash collected per tenant lease, and the Company’s expense incurred may differ materially from the amount of cash paid
per ground lease. Additional information regarding straight-line accounting can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 in the section entitled “Revenue Recognition,” in note 1,
“Business and Summary of Significant Accounting Policies” within the notes to the consolidated financial statements. The above table sets forth a summary of total rental and management straight-line revenue and expense, which represents
the non-cash revenue and expense recorded due to straight-line recognition. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| International pass-through revenue detail: |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| Pass-through revenue |
|
$ |
71,280 |
|
|
$ |
57,201 |
|
|
$ |
212,210 |
|
|
$ |
161,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| Pre-paid rent detail: |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| Beginning balance |
|
$ |
216,649 |
|
|
$ |
158,536 |
|
|
$ |
198,792 |
|
|
$ |
156,678 |
|
| Cash |
|
|
42,950 |
|
|
|
48,397 |
|
|
|
87,993 |
|
|
|
73,868 |
|
| Amortization(1) |
|
|
(15,561 |
) |
|
|
(8,359 |
) |
|
|
(42,748 |
) |
|
|
(31,972 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending balance |
|
$ |
244,037 |
|
|
$ |
198,574 |
|
|
$ |
244,037 |
|
|
$ |
198,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) |
Includes the impact of fluctuations in foreign currency exchange rates. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| Selling, general, administrative and development expense breakout: |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| Total rental and management overhead |
|
$ |
56,251 |
|
|
$ |
45,198 |
|
|
$ |
165,417 |
|
|
$ |
129,071 |
|
| Network development services segment overhead |
|
|
1,880 |
|
|
|
2,127 |
|
|
|
7,105 |
|
|
|
4,410 |
|
| Corporate and development expenses |
|
|
24,939 |
|
|
|
21,516 |
|
|
|
74,251 |
|
|
|
66,099 |
|
| Stock-based compensation expense |
|
|
14,711 |
|
|
|
12,618 |
|
|
|
51,964 |
|
|
|
38,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
97,781 |
|
|
$ |
81,459 |
|
|
$ |
298,737 |
|
|
$ |
237,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
UNAUDITED SELECTED FINANCIAL INFORMATION
($ in thousands. Totals may not add due to rounding.)
SELECTED STATEMENT OF OPERATIONS DETAIL (CONTINUED):
The
following table reflects the estimated impact of foreign currency exchange rate fluctuations, straight-line revenue and expense recognition and material one-time items on total rental and management revenue, Adjusted EBITDA and AFFO:
The calculation of Core Growth is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, 2013 |
|
Total Rental and
Management
Revenue |
|
|
Adjusted
EBITDA |
|
|
AFFO |
|
| Core Growth |
|
|
18.5 |
% |
|
|
17.4 |
% |
|
|
25.9 |
% |
| Estimated impact of fluctuations in foreign currency exchange rates |
|
|
(2.8 |
)% |
|
|
(1.9 |
)% |
|
|
(2.7 |
)% |
| Impact of straight-line revenue recognition |
|
|
(1.4 |
)% |
|
|
(1.5 |
)% |
|
|
— |
|
| Impact of material one-time items |
|
|
— |
|
|
|
— |
|
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported growth |
|
|
14.2 |
% |
|
|
13.9 |
% |
|
|
24.4 |
% |
|
|
|
|
| Nine Months Ended September 30, 2013 |
|
|
|
|
|
|
|
|
|
| Core Growth |
|
|
18.9 |
% |
|
|
17.2 |
% |
|
|
21.7 |
% |
| Estimated impact of fluctuations in foreign currency exchange rates |
|
|
(1.8 |
)% |
|
|
(1.2 |
)% |
|
|
(1.9 |
)% |
| Impact of straight-line revenue recognition |
|
|
(1.6 |
)% |
|
|
(1.6 |
)% |
|
|
— |
|
| Impact of material one-time items |
|
|
(0.9 |
)% |
|
|
(1.0 |
)% |
|
|
(2.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reported growth |
|
|
14.5 |
% |
|
|
13.3 |
% |
|
|
17.7 |
% |
SELECTED CASH FLOW DETAIL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| Payments for purchase of property and equipment and construction activities: |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| Discretionary - capital projects |
|
$ |
80,733 |
|
|
$ |
78,894 |
|
|
$ |
210,860 |
|
|
$ |
192,165 |
|
| Discretionary - ground lease purchases |
|
|
22,656 |
|
|
|
21,273 |
|
|
|
54,516 |
|
|
|
48,462 |
|
| Start-up capital projects |
|
|
7,597 |
|
|
|
11,253 |
|
|
|
22,133 |
|
|
|
18,915 |
|
| Redevelopment |
|
|
30,004 |
|
|
|
17,748 |
|
|
|
75,087 |
|
|
|
58,703 |
|
| Capital improvements |
|
|
18,724 |
|
|
|
16,189 |
|
|
|
61,048 |
|
|
|
44,587 |
|
| Corporate |
|
|
7,930 |
|
|
|
5,267 |
|
|
|
24,605 |
|
|
|
14,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
167,644 |
|
|
$ |
150,624 |
|
|
$ |
448,249 |
|
|
$ |
377,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED PORTFOLIO DETAIL – OWNED SITES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tower Count (1): |
|
As of
June 30, 2013 |
|
|
Constructed |
|
|
Acquired |
|
|
Adjustments |
|
|
As of
September 30, 2013 |
|
| United States (2) |
|
|
22,720 |
|
|
|
48 |
|
|
|
3 |
|
|
|
(17 |
) |
|
|
22,754 |
|
| Brazil |
|
|
4,482 |
|
|
|
29 |
|
|
|
— |
|
|
|
— |
|
|
|
4,511 |
|
| Chile |
|
|
1,182 |
|
|
|
2 |
|
|
|
1 |
|
|
|
(36 |
) |
|
|
1,149 |
|
| Colombia |
|
|
3,104 |
|
|
|
47 |
|
|
|
294 |
|
|
|
(16 |
) |
|
|
3,429 |
|
| Germany |
|
|
2,031 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,031 |
|
| Ghana |
|
|
1,931 |
|
|
|
14 |
|
|
|
9 |
|
|
|
— |
|
|
|
1,954 |
|
| India |
|
|
10,774 |
|
|
|
215 |
|
|
|
— |
|
|
|
(30 |
) |
|
|
10,959 |
|
| Mexico (3) |
|
|
6,721 |
|
|
|
65 |
|
|
|
20 |
|
|
|
— |
|
|
|
6,806 |
|
| Peru |
|
|
499 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
499 |
|
| South Africa |
|
|
1,629 |
|
|
|
10 |
|
|
|
189 |
|
|
|
— |
|
|
|
1,828 |
|
| Uganda |
|
|
1,120 |
|
|
|
35 |
|
|
|
— |
|
|
|
(7 |
) |
|
|
1,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
56,193 |
|
|
|
465 |
|
|
|
516 |
|
|
|
(106 |
) |
|
|
57,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) |
Excludes in-building and outdoor distributed antenna system networks. |
| |
(2) |
Includes 274 broadcast towers. |
| |
(3) |
Includes 199 broadcast towers. |
13
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED FINANCIAL MEASURES
(In thousands, except per share data and percentages. Totals may not add due to rounding.)
The reconciliation of net income to Adjusted EBITDA and the calculation of Adjusted EBITDA Margin are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| Net income |
|
$ |
163,222 |
|
|
$ |
231,825 |
|
|
$ |
408,283 |
|
|
$ |
475,872 |
|
| Income from equity method investments |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(25 |
) |
| Income tax provision |
|
|
15,586 |
|
|
|
13,054 |
|
|
|
23,361 |
|
|
|
64,117 |
|
| Other expense (income) |
|
|
29,622 |
|
|
|
(46,294 |
) |
|
|
148,991 |
|
|
|
19,468 |
|
| Loss on retirement of long-term obligations |
|
|
— |
|
|
|
— |
|
|
|
37,967 |
|
|
|
398 |
|
| Interest expense |
|
|
106,335 |
|
|
|
102,272 |
|
|
|
318,916 |
|
|
|
297,622 |
|
| Interest income |
|
|
(2,342 |
) |
|
|
(1,717 |
) |
|
|
(5,468 |
) |
|
|
(6,253 |
) |
| Other operating expenses |
|
|
15,469 |
|
|
|
7,359 |
|
|
|
35,686 |
|
|
|
35,150 |
|
| Depreciation, amortization and accretion |
|
|
184,922 |
|
|
|
144,061 |
|
|
|
555,334 |
|
|
|
465,788 |
|
| Stock-based compensation expense |
|
|
15,058 |
|
|
|
13,058 |
|
|
|
53,155 |
|
|
|
39,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
527,872 |
|
|
$ |
463,616 |
|
|
$ |
1,576,225 |
|
|
$ |
1,391,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Divided by total revenue |
|
|
807,880 |
|
|
|
713,335 |
|
|
|
2,419,438 |
|
|
|
2,107,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA Margin |
|
|
65 |
% |
|
|
65 |
% |
|
|
65 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation of net income to NAREIT Funds From Operations and the calculation of Adjusted Funds From Operations and
Adjusted Funds From Operations per Share are presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| Net Income |
|
$ |
163,222 |
|
|
$ |
231,825 |
|
|
$ |
408,283 |
|
|
$ |
475,872 |
|
| Real estate related depreciation, amortization and accretion |
|
|
160,976 |
|
|
|
122,944 |
|
|
|
485,328 |
|
|
|
407,970 |
|
| Losses from sale or disposal of real estate and real estate related impairment charges |
|
|
6,160 |
|
|
|
1,901 |
|
|
|
8,830 |
|
|
|
7,911 |
|
| Adjustments for unconsolidated affiliates and noncontrolling interest |
|
|
10,516 |
|
|
|
(6,338 |
) |
|
|
22,159 |
|
|
|
10,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NAREIT Funds From Operations |
|
$ |
340,874 |
|
|
$ |
350,332 |
|
|
$ |
924,600 |
|
|
$ |
901,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Straight-line revenue |
|
|
(37,286 |
) |
|
|
(40,986 |
) |
|
|
(105,968 |
) |
|
|
(118,545 |
) |
| Straight-line expense |
|
|
6,293 |
|
|
|
8,118 |
|
|
|
21,319 |
|
|
|
26,147 |
|
| Stock-based compensation expense |
|
|
15,058 |
|
|
|
13,058 |
|
|
|
53,155 |
|
|
|
39,654 |
|
| Non-cash portion of tax provision |
|
|
9,567 |
|
|
|
(2,635 |
) |
|
|
189 |
|
|
|
35,652 |
|
| Non-real estate related depreciation, amortization and accretion |
|
|
23,946 |
|
|
|
21,117 |
|
|
|
70,006 |
|
|
|
57,818 |
|
| Amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term
deferred interest charges |
|
|
7,127 |
|
|
|
2,254 |
|
|
|
22,049 |
|
|
|
6,516 |
|
| Other expense (income) (1) |
|
|
29,622 |
|
|
|
(46,294 |
) |
|
|
148,991 |
|
|
|
19,468 |
|
| Loss on retirement of long-term obligations |
|
|
— |
|
|
|
— |
|
|
|
37,967 |
|
|
|
398 |
|
| Other operating expense (2) |
|
|
9,309 |
|
|
|
5,458 |
|
|
|
26,856 |
|
|
|
27,239 |
|
| Capital improvement capital expenditures (3) |
|
|
(18,724 |
) |
|
|
(16,189 |
) |
|
|
(61,048 |
) |
|
|
(44,587 |
) |
| Corporate capital expenditures |
|
|
(7,930 |
) |
|
|
(5,268 |
) |
|
|
(24,605 |
) |
|
|
(14,194 |
) |
| Adjustments for unconsolidated affiliates and noncontrolling interest |
|
|
(10,516 |
) |
|
|
6,338 |
|
|
|
(22,159 |
) |
|
|
(10,135 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Funds From Operations |
|
$ |
367,340 |
|
|
$ |
295,303 |
|
|
$ |
1,091,352 |
|
|
$ |
927,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Divided by weighted average diluted shares outstanding |
|
|
398,348 |
|
|
|
399,487 |
|
|
|
399,275 |
|
|
|
399,084 |
|
| Adjusted Funds From Operations per Share |
|
$ |
0.92 |
|
|
$ |
0.74 |
|
|
$ |
2.73 |
|
|
$ |
2.32 |
|
| |
(1) |
Primarily includes unrealized (gain) loss on foreign currency exchange rate fluctuations. |
| |
(2) |
Primarily includes transaction related costs. |
| |
(3) |
2012 amounts adjusted to exclude the category of capital expenditures, start-up capital projects. |
14