[February 23, 2015] |
|
American Tower Corporation Reports Fourth Quarter and Full Year 2014 Financial Results
American Tower Corporation (NYSE: AMT) today reported financial results
for the fourth quarter and full year ended December 31, 2014.
Jim Taiclet, American Tower's Chief Executive Officer stated, "In 2014,
our rental and management segment revenues topped $4 billion for the
first time in our history, a 22% increase over the prior year. Our solid
top line growth was driven by a combination of continued network
expansion and modernization by our tenants around the world, and by our
successful construction and acquisition programs, which together added
nearly 8,500 new sites in 2014.
Moreover, our recently announced transactions with Verizon, Telecom
Italia, and Bharti Airtel are expected to close in the first half of
2015 and will further enhance our strategic positioning in the U.S.,
Latin America and Africa. We expect that these assets will both
strengthen and lengthen the company's growth trajectory for years to
come, as well as advance our global strategy of expanding our business
relationships with the world's leading mobile operators."
FOURTH QUARTER 2014 OPERATING RESULTS OVERVIEW
American Tower generated the following operating results for the quarter
ended December 31, 2014 (unless otherwise indicated, all comparative
information is presented against the quarter ended December 31, 2013).
-
Total revenue increased 11.1% to $1,046 million, and total rental and
management revenue increased 11.5% to $1,030 million.
-
Total rental and management revenue Core Growth was approximately
17.6%, and total rental and management Organic Core Growth was
approximately 10.0%.
-
Total rental and management Gross Margin increased 10.2% to $763
million, and total rental and management Gross Margin percentage was
74%.
-
Adjusted EBITDA increased 10.2% to $661 million, Core Growth in
Adjusted EBITDA was 17.0%, and Adjusted EBITDA Margin was 63%.
Adjusted EBITDA was negatively impacted by one-time SG&A items of
approximately $4.9 million.
-
Adjusted Funds From Operations (AFFO) increased 16.8% to $442 million,
AFFO per Share increased 15.8% to $1.10, and Core Growth in AFFO was
approximately 21.7%.
-
Net income attributable to American Tower per basic common share
increased 72.0% to $0.43 and Net income attributable to American Tower
per diluted common share increased 68.0% to $0.42.
-
Cash provided by operating activities increased 24.3% to $565 million.
Segment Results
Domestic Rental and Management Segment
-
Revenue increased 9.3% to $681 million;
-
Organic Core Growth in revenue was 9.0%;
-
Gross Margin increased 9.4% to $547 million;
-
Gross Margin percentage was 80%;
-
Operating Profit increased 8.8% to $508 million, which represented 73%
of total Operating Profit; and
-
Operating Profit Margin was 75%.
International Rental and Management Segment
-
Revenue increased 15.9% to $349 million;
-
Organic Core Growth in revenue excluding pass-through was 12.9%;
-
Organic Core Growth in revenue was 12.6%;
-
Gross Margin increased 12.1% to $216 million;
-
Gross Margin percentage was 62% (85% excluding the impact of $94
million of pass-through revenues);
-
Operating Profit increased 9.9% to $179 million, which represented 26%
of total Operating Profit; and
-
Operating Profit Margin was 51% (70%, excluding the impact of $94
million of pass-through revenues).
Network Development Services Segment
-
Revenue was $16 million;
-
Gross Margin was $9 million;
-
Gross Margin percentage was 57%;
-
Operating Profit was $5 million, which represented 1% of total
Operating Profit; and
-
Operating Profit Margin was 29%.
FULL YEAR 2014 OPERATING RESULTS OVERVIEW
American Tower generated the following operating results for the twelve
months ended December 31, 2014 (unless otherwise indicated, all
comparative information is presented against the twelve months ended
December 31, 2013).
-
Total revenue increased 22.0% to $4,100 million and total rental and
management revenue increased 21.9% to $4,007 million.
-
Total rental and management revenue Core Growth was approximately
27.5%, and total rental and management revenue Organic Core Growth was
approximately 11.1%.
-
Total rental and management Gross Margin increased 19.4% to $2,963
million, and total rental and management Gross Margin percentage was
74%.
-
Adjusted EBITDA increased 21.8% to $2,650 million, Core Growth in
Adjusted EBITDA was 27.3%, and the Adjusted EBITDA Margin was 65%.
-
AFFO increased 23.5% to $1,815 million, AFFO per Share increased 23.4%
to $4.54, and Core Growth in AFFO was approximately 27.3%.
-
Net income attributable to American Tower per basic common share
increased 44.3% to $2.02, and net income attributable to American
Tower per diluted common share increased 44.9% to $2.00.
-
Cash provided by operating activities increased 33.5% to $2,135
million.
Segment Results
Domestic Rental and Management Segment
-
Revenue increased 20.6% to $2,640 million;
-
Organic Core Growth in revenue was 9.6%;
-
Gross Margin increased 19.1% to $2,124 million;
-
Gross Margin percentage was 80%;
-
Operating Profit increased 19.0% to $1,999 million, which represented
73% of total Operating Profit; and
-
Operating Profit Margin was 76%.
International Rental and Management Segment
-
Revenue increased 24.5% to $1,367 million;
-
Organic Core Growth in revenue excluding pass-through was 13.1%;
-
Organic Core Growth in revenue was 15.5%;
-
Gross Margin increased 20.2% to $839 million;
-
Gross Margin percentage was 61% (83% excluding the impact of $363
million of pass-through revenues);
-
Operating Profit increased 22.7% to $705 million, which represented
26% of total Operating Profit; and
-
Operating Profit Margin was 52% (70%, excluding the impact of $363
million of pass-through revenues).
Network Development Services Segment
-
Revenue was $93 million;
-
Gross Margin was $56 million;
-
Gross Margin percentage was 60%;
-
Operating Profit was $43 million, which represented 2% of total
Operating Profit; and
-
Operating Profit Margin was 46%.
Please refer to "Non-GAAP and Defined Financial Measures" below for
definitions of Gross Margin, Operating Profit, Operating Profit Margin,
Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations,
AFFO, AFFO per Share, Core Growth, Organic Core Growth, New Property
Core Growth and Net Leverage Ratio. For additional financial
information, including reconciliations to GAAP measures, please refer to
the unaudited selected financial information below.
INVESTING OVERVIEW
Distributions - In the fourth quarter, the Company
declared its fourth quarter common stock distribution as well as a
preferred stock dividend payable in February. On January 13, 2015, the
Company paid its fourth quarter common stock distribution of $0.38 per
share, or a total of approximately $151 million, to common stockholders
of record at the close of business on December 16, 2014. On February 16,
2015, the Company paid a dividend of $1.3125 per share, or
approximately $8 million, to preferred stockholders of record at the
close of business on February 1, 2015.
During the twelve months ended December 31, 2014, the Company declared
an aggregate of $1.40 per share in distributions, or a total of
approximately $555 million, to its common stockholders. The Company also
declared an aggregate of $3.9813 per share, or approximately $24
million, to its preferred 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
fourth quarter of 2014, total capital expenditures of $251 million
included:
-
$100 million for discretionary capital projects, including spending to
complete the construction of 51 towers and the installation of 15
distributed antenna system networks and 24 shared generators
domestically and the construction of 907 towers and the installation
of 15 distributed antenna system networks internationally;
-
$43 million to purchase land under the Company's communications sites;
-
$12 million for start-up capital projects in recently launched markets;
-
$62 million for the redevelopment of existing communications sites to
accommodate new tenant equipment; and
-
$34 million for capital improvements and corporate capital
expenditures.
During the twelve months ended December 31, 2014, total capital
expenditures of $974 million included:
-
$522 million for discretionary capital projects, including spending to
complete the construction of 618 towers and the installation of 39
distributed antenna system networks and 530 shared generators
domestically and the construction of 2,441 towers and the installation
of 35 distributed antenna system networks internationally;
-
$134 million to purchase land under the Company's communications sites;
-
$26 million for start-up capital projects in recently launched markets;
-
$194 million for the redevelopment of existing communications sites to
accommodate new tenant equipment; and
-
$99 million for capital improvements and corporate capital
expenditures.
Cash Paid for Acquisitions - During the fourth
quarter of 2014, the Company spent $686 million and assumed
approximately $261 million of debt for the purchase of 140 towers
domestically and 4,625 sites internationally. The international sites
included 4,617 sites acquired as part of the Company's BR Towers
acquisition in Brazil, which closed on November 19th, 2014. Subsequent
to the close of the BR Towers acquisition, the Company repaid
approximately $122 million in debt that had been assumed as part of the
acquisition.
During the twelve months ended December 31, 2014, the Company spent
$1,011 million and assumed approximately $458 million of debt for the
purchase of 242 towers domestically and 5,075 sites internationally.
During the fourth quarter of 2014, the Company announced that it had
entered into definitive agreements to acquire approximately 4,800
communications sites in Nigeria from Airtel for approximately $1.05
billion and approximately 6,500 communications sites from TIM in Brazil
for approximately 3.0 billion BRL. In addition, subsequent to the end of
the fourth quarter, the Company announced that it had entered into a
definitive agreement pursuant to which it will acquire the exclusive
right to lease, acquire or otherwise operate and manage up to 11,489
wireless communications sites from Verizon Communications, Inc.
(Verizon) in the United States for approximately $5.056 billion. These
transactions are expected to close in the first half of 2015.
FINANCING OVERVIEW
Leverage - For the quarter ended December 31, 2014,
the Company's Net Leverage Ratio was approximately 5.4x net debt (total
debt less cash and cash equivalents) to fourth quarter 2014 annualized
Adjusted EBITDA.
Liquidity - As of December 31, 2014, the Company
had approximately $2.7 billion of total liquidity, comprised of
approximately $0.3 billion in cash and cash equivalents, plus the
ability to borrow an aggregate of approximately $2.4 billion under its
revolving credit facilities, net of any outstanding letters of credit.
Upon entering into an agreement for the Verizon transaction in February
2015, the Company obtained commitments to receive up to $5.05 billion in
bridge loans to ensure financing for the transaction. After subsequently
obtaining $1.75 billion in incremental commitments under its existing
bank facilities, the bridge loan commitment was reduced to $3.3 billion.
On February 11, 2015, the Company completed its previously announced
redemption of all of its outstanding 4.625% senior notes due 2015, at
100.5898% of the principal amount, plus accrued and unpaid interest. The
total aggregate redemption price was approximately $613.6 million,
including approximately $10.0 million in accrued interest.
FULL YEAR 2015 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 February 23, 2015. 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.
Our current full year 2015 outlook excludes the impact of the pending
Verizon, TIM and Airtel transactions. Once closed, we expect the
annualized year one contributions from the transactions to be as follows:
(in millions)
|
|
|
Revenue
|
|
|
Gross Margin
|
|
|
Incremental SG&A (% of Revenue)
|
Verizon Wireless
|
|
|
$
|
410
|
|
|
|
$
|
235
|
|
|
|
~5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Airtel Nigeria
|
|
|
$
|
248
|
|
|
|
$
|
87
|
|
|
|
~11%
|
|
|
|
|
|
|
|
|
|
|
|
|
TIM Brazil (in BRL)
|
|
|
435
|
|
|
|
191
|
|
|
|
<2%
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's outlook is based on the following average foreign currency
exchange rates to 1.00 U.S. Dollar for the full year 2015: (a) 2.75
Brazilian Reais; (b) 630.00 Chilean Pesos; (c) 2,400.00 Colombian Pesos;
(d) 0.90 Euros; (e) 3.50 Ghanaian Cedi; (f) 62.50 Indian Rupees;
(g) 14.75 Mexican Pesos; (h) 3.10 Peruvian Soles; (i) 11.65 South
African Rand; and (j) 2,900.00 Ugandan Schillings.
A 5% fluctuation in foreign currency exchange rate assumptions versus
the rates assumed in the Company's 2015 outlook would result in an
impact of approximately $72 million in revenues, approximately $39
million in Adjusted EBITDA and approximately $35 million in AFFO,
relative to the midpoints of the Company's 2015 outlook.
($ in millions)
|
|
|
Full Year 2015
|
|
|
Midpoint
Growth
|
|
|
Midpoint Core
Growth
|
Total rental and management revenue
|
|
|
$
|
4,250
|
|
to
|
|
$
|
4,330
|
|
|
|
7.1
|
%
|
|
|
11.7
|
%
|
Adjusted EBITDA(1)
|
|
|
2,820
|
|
to
|
|
2,900
|
|
|
|
7.9
|
%
|
|
|
11.7
|
%
|
AFFO(1)
|
|
|
1,940
|
|
to
|
|
2,000
|
|
|
|
8.6
|
%
|
|
|
13.4
|
%
|
Net Income
|
|
|
945
|
|
to
|
|
995
|
|
|
|
20.8
|
%
|
|
|
N/A
|
(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:
-
Domestic rental and management segment revenue of $2,845 million and
Organic Core Growth of over 7%; and
-
International rental and management segment revenue of $1,445 million
and Organic Core Growth excluding pass-through of nearly 10%.
International rental and management segment revenue includes
approximately $373 million of pass-through revenue.
The calculation of midpoint Core Growth is as follows: (Totals
may not add due to rounding.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Rental and
Management
Revenue
|
|
|
Adjusted
EBITDA(1)
|
|
|
AFFO(1)
|
Outlook midpoint Core Growth
|
|
|
11.7
|
%
|
|
|
11.7
|
%
|
|
|
13.4
|
%
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(4.2)
|
%
|
|
|
(3.4)
|
%
|
|
|
(4.6)
|
%
|
Impact of straight-line revenue and expense recognition
|
|
|
(0.3)
|
%
|
|
|
(0.2)
|
%
|
|
|
-
|
|
Impact of significant one-time items
|
|
|
-
|
|
|
|
(0.1)
|
%
|
|
|
(0.2)
|
%
|
Outlook midpoint growth
|
|
|
7.1
|
%
|
|
|
7.9
|
%
|
|
|
8.6
|
%
|
(1) See "Non-GAAP and Defined Financial Measures" below.
Total Rental and Management Revenue Core Growth Components(1):
(Totals may not add due to rounding.)
|
|
|
Full Year 2015
|
Organic Core Growth
|
|
|
~8%
|
Core New Property Growth(2)
|
|
|
~4%
|
Core Growth
|
|
|
~12%
|
(1) Reflects growth at the midpoint of outlook ranges.
(2) Revenue growth attributable to sites added to the portfolio on or
after January 1, 2014.
Outlook for Capital Expenditures:
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
(Totals may not add due to rounding.)
|
|
|
Full Year 2015
|
Discretionary capital projects(1)
|
|
|
$
|
340
|
|
to
|
|
$
|
380
|
Ground lease purchases
|
|
|
170
|
|
to
|
|
190
|
Start-up capital projects
|
|
|
30
|
|
to
|
|
40
|
Redevelopment
|
|
|
155
|
|
to
|
|
175
|
Capital improvement
|
|
|
90
|
|
to
|
|
100
|
Corporate
|
|
|
15
|
|
-
|
|
15
|
Total
|
|
|
$
|
800
|
|
to
|
|
$
|
900
|
(1) Includes the construction of approximately 2,750 to 3,250
communications sites.
Reconciliations of Outlook for Net Income to Adjusted EBITDA:
|
($ in millions)
|
|
|
(Totals may not add due to rounding.)
|
|
Full Year 2015
|
Net income
|
|
$
|
945
|
|
to
|
|
$
|
995
|
Interest expense
|
|
590
|
|
to
|
|
620
|
Depreciation, amortization and accretion
|
|
1,065
|
|
to
|
|
1,075
|
Income tax provision
|
|
95
|
|
to
|
|
85
|
Stock-based compensation expense
|
|
90
|
|
-
|
|
90
|
Other, including other operating expenses, interest income, loss on
retirement of long-term obligations, income (loss) on equity method
investments and other income (expense)
|
|
35
|
|
-
|
|
35
|
Adjusted EBITDA
|
|
$
|
2,820
|
|
to
|
|
$
|
2,900
|
|
|
|
|
|
|
|
|
|
Reconciliations of Outlook for Net Income to AFFO:
|
($ in millions)
|
|
|
(Totals may not add due to rounding.)
|
|
Full Year 2015
|
Net income
|
|
$
|
945
|
|
|
to
|
|
$
|
995
|
|
Straight-line revenue
|
|
(120
|
)
|
|
-
|
|
(120
|
)
|
Straight-line expense
|
|
32
|
|
|
-
|
|
32
|
|
Depreciation, amortization and accretion
|
|
1,065
|
|
|
to
|
|
1,075
|
|
Stock-based compensation expense
|
|
90
|
|
|
-
|
|
90
|
|
Non-cash portion of tax provision
|
|
11
|
|
|
to
|
|
18
|
|
Other, including other operating expenses, amortization of deferred
financing costs, capitalized interest, debt discounts and premiums,
(gain) loss on retirement of long-term obligations, other income
(expense), non-cash interest related to joint venture shareholder
loans and dividends declared on preferred stock
|
|
23
|
|
|
to
|
|
26
|
|
Capital improvement capital expenditures
|
|
(90
|
)
|
|
to
|
|
(100
|
)
|
Corporate capital expenditures
|
|
(15
|
)
|
|
-
|
|
(15
|
)
|
AFFO
|
|
$
|
1,940
|
|
|
to
|
|
$
|
2,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information
American Tower will host a conference call tomorrow at 8:30 a.m. ET to
discuss its financial results for the fourth quarter and full year ended
December 31, 2014 and its outlook for 2015. 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: 74272127
When available, a replay of the call can be accessed until 11:59 p.m. ET
on March 3, 2015. The replay dial-in numbers are as follows:
U.S./Canada dial-in: (855) 859-2056 International dial-in: (404)
537-3406 Passcode: 74272127
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
communications real estate, with a global portfolio of over 75,000
communications sites. For more information about American Tower, please
visit the "Earnings Materials" and "Company & Industry Resources"
sections of our investor relations website at 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, AFFO, AFFO per Share, Core Growth, Organic Core
Growth, New Property 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.
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, gain (loss) on retirement of long-term obligations,
other income (expense), net income (loss) attributable to
non-controlling interest, income (loss) on equity method investments and
income tax benefit (provision). 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 benefit (provision), other income
(expense), gain (loss) on retirement of long-term obligations, interest
expense, interest income, other operating income (expense),
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, real estate related depreciation, amortization and accretion
and dividends declared on preferred stock, and including adjustments for
(i) unconsolidated affiliates and (ii) noncontrolling interest. The
Company defines AFFO 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) gain (loss) on retirement of long-term
obligations, (viii) other operating income (expense), and adjustments
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 AFFO per Share as
AFFO divided by the diluted weighted average common shares outstanding.
The Company defines Core Growth in total rental and management revenue,
Adjusted EBITDA and AFFO 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 Organic Core Growth in rental and management revenue 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, significant
one-time items and revenue associated with new properties that the
Company has added to the portfolio since the beginning of the prior
period. The Company defines New Property Core Growth in rental and
management revenue as the increase or decrease, expressed as a
percentage, on the properties the Company has added to its portfolio
since the beginning of the prior period, 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, AFFO, AFFO per Share, Core Growth, Organic Core
Growth, New Property 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 2015 outlook, foreign currency exchange rates and our expectation
regarding the leasing demand for communications real estate. 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) if our tenants share site infrastructure to a
significant degree or consolidate or merge, our growth, revenue and
ability to generate positive cash flows could be materially and
adversely affected; (3) increasing competition for tenants in the tower
industry may materially and adversely affect our pricing; (4)
competition for assets could adversely affect our ability to achieve our
return on investment criteria; (5) 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; (6) our
leverage and debt service obligations may materially and adversely
affect us; (7) failure to successfully and efficiently integrate
acquired or leased assets, including from the proposed Verizon
transaction, into our operations may adversely affect our business,
operations and financial condition; (8) 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; (9) 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; (10) 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; (11) new technologies or changes in a tenant's business model
could make our tower leasing business less desirable and result in
decreasing revenues; (12) if we fail to remain qualified as a REIT, we
will be subject to tax at corporate income tax rates, which may
substantially reduce funds otherwise available; (13) complying with REIT
requirements may limit our flexibility or cause us to forego otherwise
attractive opportunities; (14) certain of our business activities may be
subject to corporate level income tax and foreign taxes, which reduce
our cash flows and may create deferred and contingent tax liabilities;
(15) we may need additional financing to fund capital expenditures,
future growth and expansion initiatives and to satisfy our REIT
distribution requirements; (16) if we are unable to protect our rights
to the land under our towers, it could adversely affect our business and
operating results; (17) 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 will be eliminated; (18) restrictive covenants in the
agreements related to our securitization transactions, our credit
facilities and our debt securities could materially and adversely affect
our business by limiting flexibility, and we may be prohibited from
paying dividends on our common stock if we fail to pay scheduled
dividends on our preferred stock, which may jeopardize our qualification
for taxation as a REIT; (19) our costs could increase and our revenues
could decrease due to perceived health risks from radio emissions,
especially if these perceived risks are substantiated; (20) we could
have liability under environmental and occupational safety and health
laws; and (21) our towers, data centers or computer systems may be
affected by natural disasters and other unforeseen events for which our
insurance may not provide adequate coverage. 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 September 30, 2014. We undertake no obligation to update the
information contained in this press release to reflect subsequently
occurring events or circumstances.
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013(1)
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
313,492
|
|
|
|
$
|
293,576
|
|
Restricted cash
|
|
|
160,206
|
|
|
|
152,916
|
|
Short-term investments
|
|
|
6,302
|
|
|
|
18,612
|
|
Accounts receivable, net
|
|
|
198,714
|
|
|
|
151,165
|
|
Prepaid and other current assets
|
|
|
254,622
|
|
|
|
347,417
|
|
Deferred income taxes
|
|
|
14,632
|
|
|
|
22,401
|
|
Total current assets
|
|
|
947,968
|
|
|
|
986,087
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
7,626,817
|
|
|
|
7,177,728
|
|
GOODWILL
|
|
|
4,017,082
|
|
|
|
3,854,802
|
|
OTHER INTANGIBLE ASSETS, net
|
|
|
6,889,331
|
|
|
|
6,570,119
|
|
DEFERRED INCOME TAXES
|
|
|
253,186
|
|
|
|
266,909
|
|
DEFERRED RENT ASSET
|
|
|
1,030,707
|
|
|
|
918,847
|
|
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS
|
|
|
566,454
|
|
|
|
509,173
|
|
TOTAL
|
|
|
$
|
21,331,545
|
|
|
|
$
|
20,283,665
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
90,366
|
|
|
|
$
|
172,938
|
|
Accrued expenses
|
|
|
417,754
|
|
|
|
421,188
|
|
Distributions payable
|
|
|
159,864
|
|
|
|
575
|
|
Accrued interest
|
|
|
130,265
|
|
|
|
105,751
|
|
Current portion of long-term obligations
|
|
|
897,624
|
|
|
|
70,132
|
|
Unearned revenue
|
|
|
233,819
|
|
|
|
162,079
|
|
Total current liabilities
|
|
|
1,929,692
|
|
|
|
932,663
|
|
LONG-TERM OBLIGATIONS
|
|
|
13,711,084
|
|
|
|
14,408,146
|
|
ASSET RETIREMENT OBLIGATIONS
|
|
|
609,035
|
|
|
|
549,548
|
|
OTHER NON-CURRENT LIABILITIES
|
|
|
1,028,382
|
|
|
|
803,268
|
|
Total liabilities
|
|
|
17,278,193
|
|
|
|
16,693,625
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
60
|
|
|
|
-
|
|
Common stock
|
|
|
3,995
|
|
|
|
3,976
|
|
Additional paid-in capital
|
|
|
5,788,786
|
|
|
|
5,130,616
|
|
Distributions in excess of earnings
|
|
|
(837,320
|
)
|
|
|
(1,081,467
|
)
|
Accumulated other comprehensive loss
|
|
|
(794,221
|
)
|
|
|
(311,220
|
)
|
Treasury stock
|
|
|
(207,740
|
)
|
|
|
(207,740
|
)
|
Total American Tower Corporation equity
|
|
|
3,953,560
|
|
|
|
3,534,165
|
|
Noncontrolling interest
|
|
|
99,792
|
|
|
|
55,875
|
|
Total equity
|
|
|
4,053,352
|
|
|
|
3,590,040
|
|
TOTAL
|
|
|
$
|
21,331,545
|
|
|
|
$
|
20,283,665
|
|
(1) December 31, 2013 balances have been revised to reflect purchase
accounting measurement period adjustments.
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and management
|
|
|
$
|
1,029,854
|
|
|
|
$
|
923,883
|
|
|
|
$
|
4,006,854
|
|
|
|
$
|
3,287,090
|
|
Network development services
|
|
|
16,460
|
|
|
|
18,086
|
|
|
|
93,194
|
|
|
|
74,317
|
|
Total operating revenues
|
|
|
1,046,314
|
|
|
|
941,969
|
|
|
|
4,100,048
|
|
|
|
3,361,407
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of operations (exclusive of items shown separately below):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and management (including stock-based compensation expense of
$338, $226, $1,397 and $977, respectively)
|
|
|
269,803
|
|
|
|
243,277
|
|
|
|
1,056,177
|
|
|
|
828,742
|
|
Network development services (including stock-based compensation
expense of $97, $127, $440 and $567, respectively)
|
|
|
7,216
|
|
|
|
8,292
|
|
|
|
38,088
|
|
|
|
31,131
|
|
Depreciation, amortization and accretion
|
|
|
263,546
|
|
|
|
244,811
|
|
|
|
1,003,802
|
|
|
|
800,145
|
|
Selling, general, administrative and development expense (including
stock-based compensation expense of $18,010, $14,630, $78,316 and
$66,594, respectively)
|
|
|
129,105
|
|
|
|
116,808
|
|
|
|
446,542
|
|
|
|
415,545
|
|
Other operating expenses
|
|
|
30,665
|
|
|
|
35,853
|
|
|
|
68,517
|
|
|
|
71,539
|
|
Total operating expenses
|
|
|
700,335
|
|
|
|
649,041
|
|
|
|
2,613,126
|
|
|
|
2,147,102
|
|
OPERATING INCOME
|
|
|
345,979
|
|
|
|
292,928
|
|
|
|
1,486,922
|
|
|
|
1,214,305
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, TV Azteca, net
|
|
|
2,629
|
|
|
|
11,562
|
|
|
|
10,547
|
|
|
|
22,235
|
|
Interest income
|
|
|
5,853
|
|
|
|
4,238
|
|
|
|
14,002
|
|
|
|
9,706
|
|
Interest expense
|
|
|
(147,481
|
)
|
|
|
(139,380
|
)
|
|
|
(580,234
|
)
|
|
|
(458,296
|
)
|
Loss on retirement of long-term obligations
|
|
|
(4,920
|
)
|
|
|
(734
|
)
|
|
|
(3,473
|
)
|
|
|
(38,701
|
)
|
Other expense (including unrealized foreign currency (gains) losses
of ($13,273), $60,049, $49,319 and $211,722, respectively)
|
|
|
(7,835
|
)
|
|
|
(58,509
|
)
|
|
|
(62,060
|
)
|
|
|
(207,500
|
)
|
Total other expense
|
|
|
(151,754
|
)
|
|
|
(182,823
|
)
|
|
|
(621,218
|
)
|
|
|
(672,556
|
)
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INCOME ON
EQUITY METHOD INVESTMENTS
|
|
|
194,225
|
|
|
|
110,105
|
|
|
|
865,704
|
|
|
|
541,749
|
|
Income tax provision
|
|
|
(12,628
|
)
|
|
|
(36,180
|
)
|
|
|
(62,505
|
)
|
|
|
(59,541
|
)
|
NET INCOME
|
|
|
181,597
|
|
|
|
73,925
|
|
|
|
803,199
|
|
|
|
482,208
|
|
Net loss attributable to noncontrolling interest
|
|
|
(1,210
|
)
|
|
|
26,057
|
|
|
|
21,711
|
|
|
|
69,125
|
|
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS
|
|
|
180,387
|
|
|
|
99,982
|
|
|
|
824,910
|
|
|
|
551,333
|
|
Dividends declared on preferred stock
|
|
|
(11,813
|
)
|
|
|
-
|
|
|
|
(23,888
|
)
|
|
|
-
|
|
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON
STOCKHOLDERS
|
|
|
$
|
168,574
|
|
|
|
$
|
99,982
|
|
|
|
$
|
801,022
|
|
|
|
$
|
551,333
|
|
NET INCOME PER COMMON SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income attributable to American Tower Corporation common
stockholders
|
|
|
$
|
0.43
|
|
|
|
$
|
0.25
|
|
|
|
$
|
2.02
|
|
|
|
$
|
1.40
|
|
Diluted net income attributable to American Tower Corporation common
stockholders
|
|
|
$
|
0.42
|
|
|
|
$
|
0.25
|
|
|
|
$
|
2.00
|
|
|
|
$
|
1.38
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
396,553
|
|
|
|
394,751
|
|
|
|
395,958
|
|
|
|
395,040
|
|
DILUTED
|
|
|
400,899
|
|
|
|
398,609
|
|
|
|
400,086
|
|
|
|
399,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
2014
|
|
|
2013
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
803,199
|
|
|
|
$
|
482,208
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
80,153
|
|
|
|
68,138
|
|
Depreciation, amortization and accretion
|
|
|
1,003,802
|
|
|
|
800,145
|
|
Loss on early retirement of long-term obligations
|
|
|
3,379
|
|
|
|
35,288
|
|
Other non-cash items reflected in statement of operations
|
|
|
86,790
|
|
|
|
231,764
|
|
Increase in net deferred rent asset
|
|
|
(83,852
|
)
|
|
|
(115,443
|
)
|
Decrease (increase) in restricted cash
|
|
|
7,522
|
|
|
|
(52,717
|
)
|
Increase in assets
|
|
|
(85,966
|
)
|
|
|
(115,118
|
)
|
Increase in liabilities
|
|
|
319,562
|
|
|
|
264,782
|
|
Cash provided by operating activities
|
|
|
2,134,589
|
|
|
|
1,599,047
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Payments for purchase of property and equipment and construction
activities
|
|
|
(974,404
|
)
|
|
|
(724,532
|
)
|
Payments for acquisitions, net of cash acquired
|
|
|
(1,010,637
|
)
|
|
|
(4,461,764
|
)
|
Net proceeds from sale of assets
|
|
|
15,464
|
|
|
|
-
|
|
Proceeds from sales of short-term investments, available-for-sale
securities and other long-term assets
|
|
|
1,434,831
|
|
|
|
421,714
|
|
Payments for short-term investments
|
|
|
(1,395,316
|
)
|
|
|
(427,267
|
)
|
Deposits, restricted cash and other
|
|
|
(19,486
|
)
|
|
|
18,512
|
|
Cash used in investing activities
|
|
|
(1,949,548
|
)
|
|
|
(5,173,337
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from (repayments of) short-term borrowings, net
|
|
|
-
|
|
|
|
8,191
|
|
Borrowings under credit facilities
|
|
|
2,187,000
|
|
|
|
3,507,000
|
|
Proceeds from issuance of senior notes, net
|
|
|
1,415,844
|
|
|
|
2,221,792
|
|
Proceeds from term loan
|
|
|
-
|
|
|
|
1,500,000
|
|
Proceeds from other long-term borrowings
|
|
|
102,070
|
|
|
|
402,688
|
|
Proceeds from issuance of Securities in Securitization transaction,
net
|
|
|
-
|
|
|
|
1,778,496
|
|
Repayments of notes payable, credit facilities and capital leases
|
|
|
(3,903,144
|
)
|
|
|
(5,337,339
|
)
|
Contributions from noncontrolling interest holders, net
|
|
|
9,098
|
|
|
|
17,447
|
|
Purchases of common stock
|
|
|
-
|
|
|
|
(145,012
|
)
|
Proceeds from stock options and stock purchase plan
|
|
|
62,276
|
|
|
|
45,496
|
|
Proceeds from the issuance of preferred stock, net
|
|
|
583,105
|
|
|
|
-
|
|
Purchase of preferred stock assumed in an acquisition
|
|
|
(59,111
|
)
|
|
|
-
|
|
Payment for early retirement of long-term obligations
|
|
|
(11,593
|
)
|
|
|
(29,234
|
)
|
Deferred financing costs and other financing activities
|
|
|
(34,670
|
)
|
|
|
(9,273
|
)
|
Purchase of noncontrolling interest
|
|
|
(64,822
|
)
|
|
|
-
|
|
Distributions paid on common stock
|
|
|
(404,631
|
)
|
|
|
(434,687
|
)
|
Distributions paid on preferred stock
|
|
|
(16,013
|
)
|
|
|
-
|
|
Cash (used in) provided by financing activities
|
|
|
(134,591
|
)
|
|
|
3,525,565
|
|
|
|
|
|
|
|
|
|
|
Net effect of changes in foreign currency exchange rates on cash and
cash equivalents
|
|
|
(30,534
|
)
|
|
|
(26,317
|
)
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
19,916
|
|
|
|
(75,042
|
)
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
293,576
|
|
|
|
368,618
|
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
|
$
|
313,492
|
|
|
|
$
|
293,576
|
|
|
|
|
|
|
|
|
|
|
CASH PAID FOR INCOME TAXES, NET
|
|
|
$
|
69,212
|
|
|
|
$
|
51,676
|
|
CASH PAID FOR INTEREST
|
|
|
$
|
548,089
|
|
|
|
$
|
397,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT
|
(In thousands, except percentages)
|
|
Three months ended December 31, 2014
|
|
|
|
Rental and Management
|
|
|
Network Development Services
|
|
|
Total
|
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
|
|
Segment revenues
|
|
|
$
|
680,698
|
|
|
|
$
|
349,156
|
|
|
|
$
|
1,029,854
|
|
|
|
$
|
16,460
|
|
|
|
$
|
1,046,314
|
|
Segment operating expenses(1)
|
|
|
133,942
|
|
|
|
135,523
|
|
|
|
269,465
|
|
|
|
7,119
|
|
|
|
276,584
|
|
Interest income, TV Azteca, net
|
|
|
-
|
|
|
|
2,629
|
|
|
|
2,629
|
|
|
|
-
|
|
|
|
2,629
|
|
Segment Gross Margin
|
|
|
546,756
|
|
|
|
216,262
|
|
|
|
763,018
|
|
|
|
9,341
|
|
|
|
772,359
|
|
Segment selling, general, administrative and development expense(1)
|
|
|
38,267
|
|
|
|
36,849
|
|
|
|
75,116
|
|
|
|
4,593
|
|
|
|
79,709
|
|
Segment Operating Profit
|
|
|
$
|
508,489
|
|
|
|
$
|
179,413
|
|
|
|
$
|
687,902
|
|
|
|
$
|
4,748
|
|
|
|
$
|
692,650
|
|
Segment Operating Profit Margin
|
|
|
75
|
%
|
|
|
51
|
%
|
|
|
67
|
%
|
|
|
29
|
%
|
|
|
66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2013
|
|
|
|
Rental and Management
|
|
|
Network Development Services
|
|
|
Total
|
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
|
|
Segment revenues
|
|
|
$
|
622,705
|
|
|
|
$
|
301,178
|
|
|
|
$
|
923,883
|
|
|
|
$
|
18,086
|
|
|
|
$
|
941,969
|
|
Segment operating expenses(1)
|
|
|
123,146
|
|
|
|
119,905
|
|
|
|
243,051
|
|
|
|
8,165
|
|
|
|
251,216
|
|
Interest income, TV Azteca, net(2)
|
|
|
-
|
|
|
|
11,562
|
|
|
|
11,562
|
|
|
|
-
|
|
|
|
11,562
|
|
Segment Gross Margin
|
|
|
499,559
|
|
|
|
192,835
|
|
|
|
692,394
|
|
|
|
9,921
|
|
|
|
702,315
|
|
Segment selling, general, administrative and development expense(1)
|
|
|
32,325
|
|
|
|
29,585
|
|
|
|
61,910
|
|
|
|
2,152
|
|
|
|
64,062
|
|
Segment Operating Profit
|
|
|
$
|
467,234
|
|
|
|
$
|
163,250
|
|
|
|
$
|
630,484
|
|
|
|
$
|
7,769
|
|
|
|
$
|
638,253
|
|
Segment Operating Profit Margin
|
|
|
75
|
%
|
|
|
54
|
%
|
|
|
68
|
%
|
|
|
43
|
%
|
|
|
68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2014
|
|
|
|
Rental and Management
|
|
|
Network Development Services
|
|
|
Total
|
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
|
|
Segment revenues
|
|
|
$
|
2,639,790
|
|
|
|
$
|
1,367,064
|
|
|
|
$
|
4,006,854
|
|
|
|
$
|
93,194
|
|
|
|
$
|
4,100,048
|
|
Segment operating expenses(1)
|
|
|
515,742
|
|
|
|
539,038
|
|
|
|
1,054,780
|
|
|
|
37,648
|
|
|
|
1,092,428
|
|
Interest income, TV Azteca, net
|
|
|
-
|
|
|
|
10,547
|
|
|
|
10,547
|
|
|
|
-
|
|
|
|
10,547
|
|
Segment Gross Margin
|
|
|
2,124,048
|
|
|
|
838,573
|
|
|
|
2,962,621
|
|
|
|
55,546
|
|
|
|
3,018,167
|
|
Segment selling, general, administrative and development expense(1)
|
|
|
124,944
|
|
|
|
133,978
|
|
|
|
258,922
|
|
|
|
12,469
|
|
|
|
271,391
|
|
Segment Operating Profit
|
|
|
$
|
1,999,104
|
|
|
|
$
|
704,595
|
|
|
|
$
|
2,703,699
|
|
|
|
$
|
43,077
|
|
|
|
$
|
2,746,776
|
|
Segment Operating Profit Margin
|
|
|
76
|
%
|
|
|
52
|
%
|
|
|
67
|
%
|
|
|
46
|
%
|
|
|
67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2013
|
|
|
|
Rental and Management
|
|
|
Network Development Services
|
|
|
Total
|
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
|
|
Segment revenues
|
|
|
$
|
2,189,365
|
|
|
|
$
|
1,097,725
|
|
|
|
$
|
3,287,090
|
|
|
|
$
|
74,317
|
|
|
|
$
|
3,361,407
|
|
Segment operating expenses(1)
|
|
|
405,419
|
|
|
|
422,346
|
|
|
|
827,765
|
|
|
|
30,564
|
|
|
|
858,329
|
|
Interest income, TV Azteca, net(2)
|
|
|
-
|
|
|
|
22,235
|
|
|
|
22,235
|
|
|
|
-
|
|
|
|
22,235
|
|
Segment Gross Margin
|
|
|
1,783,946
|
|
|
|
697,614
|
|
|
|
2,481,560
|
|
|
|
43,753
|
|
|
|
2,525,313
|
|
Segment selling, general, administrative and development expense(1)
|
|
|
103,989
|
|
|
|
123,338
|
|
|
|
227,327
|
|
|
|
9,257
|
|
|
|
236,584
|
|
Segment Operating Profit
|
|
|
$
|
1,679,957
|
|
|
|
$
|
574,276
|
|
|
|
$
|
2,254,233
|
|
|
|
$
|
34,496
|
|
|
|
$
|
2,288,729
|
|
Segment Operating Profit Margin
|
|
|
77
|
%
|
|
|
52
|
%
|
|
|
69
|
%
|
|
|
46
|
%
|
|
|
68
|
%
|
(1) Excludes stock-based compensation expense.
(2) Includes approximately $8.0 million of interest income received in
connection with a partial loan prepayment by TV Azteca.
|
|
|
|
|
|
|
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
|
|
|
December 31, 2014
|
|
|
Pro Forma December 31, 2014(1)
|
2013 Credit Facility
|
|
|
$
|
-
|
|
|
|
$
|
115,000
|
2013 Term Loan
|
|
|
1,500,000
|
|
|
|
2,000,000
|
2014 Credit Facility
|
|
|
1,100,000
|
|
|
|
1,145,000
|
3.400% Senior Notes due 2019
|
|
|
1,005,509
|
|
|
|
1,005,509
|
3.450% Senior Notes due 2021
|
|
|
646,394
|
|
|
|
646,394
|
3.500% Senior Notes due 2023
|
|
|
993,230
|
|
|
|
993,230
|
4.500% Senior Notes due 2018
|
|
|
999,631
|
|
|
|
999,631
|
4.625% Senior Notes due 2015
|
|
|
599,958
|
|
|
|
-
|
4.700% Senior Notes due 2022
|
|
|
698,987
|
|
|
|
698,987
|
5.000% Senior Notes due 2024
|
|
|
1,010,834
|
|
|
|
1,010,834
|
5.050% Senior Notes due 2020
|
|
|
699,496
|
|
|
|
699,496
|
5.900% Senior Notes due 2021
|
|
|
499,474
|
|
|
|
499,474
|
7.000% Senior Notes due 2017
|
|
|
500,000
|
|
|
|
500,000
|
7.250% Senior Notes due 2019
|
|
|
297,260
|
|
|
|
297,260
|
Total unsecured debt at American Tower Corporation
|
|
|
10,550,773
|
|
|
|
10,610,815
|
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 Notes(2)
|
|
|
1,263,983
|
|
|
|
1,263,983
|
Unison Notes(3)
|
|
|
203,683
|
|
|
|
203,683
|
South African Facility(4)
|
|
|
75,133
|
|
|
|
75,133
|
Colombian Credit Facility(4)
|
|
|
83,596
|
|
|
|
83,596
|
BR Towers Debentures(4)(5)
|
|
|
118,688
|
|
|
|
118,688
|
BR Towers Credit Facility(4)(5)
|
|
|
16,389
|
|
|
|
16,389
|
Mexican loan(4)
|
|
|
263,426
|
|
|
|
263,426
|
Shareholder loans(6)
|
|
|
137,655
|
|
|
|
137,655
|
Capital leases
|
|
|
95,382
|
|
|
|
95,382
|
Total secured or subsidiary debt
|
|
|
4,057,935
|
|
|
|
4,057,935
|
Total debt
|
|
|
$
|
14,608,708
|
|
|
|
$
|
14,668,750
|
Cash and cash equivalents
|
|
|
313,492
|
|
|
|
|
Net debt (total debt less cash and cash equivalents)
|
|
|
$
|
14,295,216
|
|
|
|
|
(1) Pro Forma for the following activity in 2015, (i) net borrowings of
$115 million under the 2013 credit facility, (ii) net borrowings of $45
million under the 2014 credit facility, (iii) the redemption of all of
the outstanding 4.625% senior notes due 2015 in accordance with the
terms thereof and (iv) borrowings of $500 million under the 2013 Term
Loan.
(2) The GTP Notes are secured debt and were assumed in connection with
the acquisition of MIPT. In August 2014, the Company repaid in full the
aggregate principal amount outstanding of $250 million under the Series
2010-1 notes.
(3) The Unison Notes are secured debt and were assumed in connection
with an acquisition.
(4) Denominated in local currency.
(5) The BR Towers debt was assumed in connection with the acquisition of
BR Towers.
(6) Reflects balances attributable to minority shareholder loans in the
Company's joint ventures in Ghana and Uganda. The Ghana shareholder loan
is denominated in Ghanaian Cedi and the Uganda shareholder loan is
denominated in USD.
|
|
|
|
UNAUDITED SELECTED FINANCIAL INFORMATION
|
|
|
|
(In thousands, except where noted. Totals may not add due to
rounding.)
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET DETAIL (CONTINUED):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Calculation of Net Leverage Ratio ($ in thousands)
|
|
|
December 31, 2014
|
Total debt
|
|
|
$
|
14,608,708
|
Cash and cash equivalents
|
|
|
313,492
|
Numerator: net debt (total debt less cash and cash equivalents)
|
|
|
$
|
14,295,216
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
661,264
|
Denominator: annualized Adjusted EBITDA
|
|
|
2,645,056
|
Net Leverage Ratio
|
|
|
5.4x
|
|
|
|
|
Share count rollforward: (in millions of shares)
|
|
|
Three months ended December 31, 2014
|
Total common shares, beginning of period
|
|
|
396.4
|
Common shares repurchased
|
|
|
-
|
Common shares issued
|
|
|
0.3
|
Total common shares outstanding, end of period(1)
|
|
|
396.7
|
(1) As of December 31, 2014, excludes (a) 3.0 million potentially
dilutive shares associated with vested and exercisable stock options
with an average exercise price of $46.77 per share; (b) 3.5 million
potentially dilutive shares associated with unvested stock options;
(c) 1.7 million potentially dilutive shares associated with unvested
restricted stock units; and (d) the potentially dilutive common shares
associated with the Company's mandatory convertible preferred stock.
|
|
|
|
|
|
|
SELECTED STATEMENT OF OPERATIONS DETAIL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and management straight-line revenue and expense(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
Domestic straight-line revenue and expense detail:
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Straight-line revenue
|
|
|
$
|
20,801
|
|
|
|
$
|
34,120
|
|
|
|
$
|
91,490
|
|
|
|
$
|
125,367
|
Straight-line expense
|
|
|
$
|
6,229
|
|
|
|
$
|
5,562
|
|
|
|
$
|
29,197
|
|
|
|
$
|
19,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
International straight-line revenue and expense detail:
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Straight-line revenue
|
|
|
$
|
6,595
|
|
|
|
$
|
7,576
|
|
|
|
$
|
32,226
|
|
|
|
$
|
22,297
|
Straight-line expense
|
|
|
$
|
2,435
|
|
|
|
$
|
2,851
|
|
|
|
$
|
9,181
|
|
|
|
$
|
10,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In accordance with GAAP, the Company recognizes rental and
management revenue and expense related to non-cancellable tenant 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, 2013 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 December 31,
|
|
Twelve Months Ended
December 31,
|
International pass-through revenue detail:
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Pass-through revenue
|
|
|
$
|
93,707
|
|
|
$
|
83,337
|
|
|
$
|
362,761
|
|
|
$
|
295,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED SELECTED FINANCIAL INFORMATION
|
|
|
|
|
|
|
($ in thousands. Totals may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED STATEMENT OF OPERATIONS DETAIL (CONTINUED):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
Prepaid rent detail(1):
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Beginning balance
|
|
|
$
|
447,329
|
|
|
|
$
|
244,037
|
|
|
|
$
|
326,177
|
|
|
|
$
|
198,792
|
|
Cash
|
|
|
80,750
|
|
|
|
101,064
|
|
|
|
285,256
|
|
|
|
189,057
|
|
Amortization(2)
|
|
|
(31,555
|
)
|
|
|
(18,924
|
)
|
|
|
(114,909
|
)
|
|
|
(61,672
|
)
|
Ending balance
|
|
|
$
|
496,524
|
|
|
|
$
|
326,177
|
|
|
|
$
|
496,524
|
|
|
|
$
|
326,177
|
|
(1) Reflects capital contributions and prepayments associated with
long-term tenant leases and amortization of those amounts as GAAP
revenue over the terms of the associated leases.
(2) Includes the impact of fluctuations in foreign currency exchange
rates.
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
Selling, general, administrative and development expense breakout:
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Total rental and management overhead
|
|
|
$
|
75,116
|
|
|
|
$
|
61,910
|
|
|
|
$
|
258,922
|
|
|
|
$
|
227,327
|
Network development services segment overhead
|
|
|
4,593
|
|
|
|
2,152
|
|
|
|
12,469
|
|
|
|
9,257
|
Corporate and development expenses(1)
|
|
|
31,386
|
|
|
|
38,116
|
|
|
|
96,835
|
|
|
|
112,367
|
Stock-based compensation expense
|
|
|
18,010
|
|
|
|
14,630
|
|
|
|
78,316
|
|
|
|
66,594
|
Total
|
|
|
$
|
129,105
|
|
|
|
$
|
116,808
|
|
|
|
$
|
446,542
|
|
|
|
$
|
415,545
|
(1) 2013 includes approximately $10.0 million of legal-related expenses,
most of which were subsequently reimbursed to the Company in 2014. The
reimbursements are reflected in the 2014 totals.
The following table reflects the estimated impact of foreign currency
exchange rate fluctuations, straight-line revenue and expense
recognition and material one-time items on total rental and management
revenue, Adjusted EBITDA and AFFO:
|
|
|
|
|
|
|
|
|
|
The calculation of Core Growth is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2014
|
|
|
Total Rental and Management Revenue
|
|
|
Adjusted EBITDA
|
|
|
AFFO
|
Core Growth
|
|
|
17.6
|
%
|
|
|
17.0
|
%
|
|
|
21.7
|
%
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(3.8)
|
%
|
|
|
(3.0)
|
%
|
|
|
(4.2
|
)%
|
Impact of straight-line revenue recognition
|
|
|
(2.2)
|
%
|
|
|
(3.2)
|
%
|
|
|
-
|
|
Impact of material one-time items
|
|
|
-
|
|
|
|
(0.5)
|
%
|
|
|
(0.8
|
)%
|
Reported growth
|
|
|
11.5
|
%
|
|
|
10.2
|
%
|
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2014
|
|
|
Total Rental and Management Revenue
|
|
|
Adjusted EBITDA
|
|
|
AFFO
|
Core Growth
|
|
|
27.5
|
%
|
|
|
27.3
|
%
|
|
|
27.3
|
%
|
Estimated impact of fluctuations in foreign currency exchange rates
|
|
|
(3.8)
|
%
|
|
|
(2.8)
|
%
|
|
|
(3.6
|
)%
|
Impact of straight-line revenue recognition
|
|
|
(1.8)
|
%
|
|
|
(2.8)
|
%
|
|
|
-
|
|
Impact of material one-time items
|
|
|
-
|
|
|
|
0.2
|
%
|
|
|
(0.1
|
)%
|
Reported growth
|
|
|
21.9
|
%
|
|
|
21.8
|
%
|
|
|
23.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED SELECTED FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
($ in thousands. Totals may not add due to rounding.)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of Core Growth in rental and management revenue
are as follows:
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2014
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
Organic Core Growth
|
|
|
9.0
|
%
|
|
|
12.6
|
%
|
|
|
10.0
|
%
|
Core New Property Growth(1)
|
|
|
3.1
|
%
|
|
|
16.1
|
%
|
|
|
7.6
|
%
|
Core Growth
|
|
|
12.1
|
%
|
|
|
28.7
|
%
|
|
|
17.6
|
%
|
(1) Defined as revenue growth associated with properties that the
Company has added to the portfolio since the beginning of the prior
period.
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2014
|
|
|
Domestic
|
|
|
International
|
|
|
Total
|
Organic Core Growth
|
|
|
9.6
|
%
|
|
|
15.5
|
%
|
|
|
11.1
|
%
|
Core New Property Growth
|
|
|
13.8
|
%
|
|
|
19.8
|
%
|
|
|
16.5
|
%
|
Core Growth
|
|
|
23.5
|
%
|
|
|
35.3
|
%
|
|
|
27.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED CASH FLOW DETAIL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
Payments for purchase of property and equipment and construction
activities:
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Discretionary - capital projects
|
|
|
$
|
100,056
|
|
|
|
$
|
170,772
|
|
|
|
$
|
521,543
|
|
|
|
$
|
381,632
|
Discretionary - ground lease purchases
|
|
|
42,903
|
|
|
|
29,326
|
|
|
|
133,729
|
|
|
|
83,842
|
Start-up capital projects
|
|
|
11,542
|
|
|
|
4,527
|
|
|
|
25,515
|
|
|
|
26,660
|
Redevelopment
|
|
|
62,487
|
|
|
|
45,710
|
|
|
|
194,430
|
|
|
|
120,797
|
Capital improvements
|
|
|
24,740
|
|
|
|
20,170
|
|
|
|
75,041
|
|
|
|
81,218
|
Corporate
|
|
|
9,322
|
|
|
|
5,778
|
|
|
|
24,146
|
|
|
|
30,383
|
Total
|
|
|
$
|
251,050
|
|
|
|
$
|
276,283
|
|
|
|
$
|
974,404
|
|
|
|
$
|
724,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED PORTFOLIO DETAIL - OWNED SITES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tower Count(1):
|
|
|
As of September 30, 2014
|
|
|
Constructed
|
|
|
Acquired
|
|
|
Adjustments
|
|
|
As of December 31, 2014
|
United States
|
|
|
28,394
|
|
|
|
51
|
|
|
|
140
|
|
|
|
(19
|
)
|
|
|
28,566
|
Brazil
|
|
|
6,959
|
|
|
|
297
|
|
|
|
4,611
|
|
|
|
6
|
|
|
|
11,873
|
Chile
|
|
|
1,156
|
|
|
|
2
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
1,156
|
Colombia
|
|
|
3,555
|
|
|
|
35
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
3,589
|
Costa Rica
|
|
|
460
|
|
|
|
3
|
|
|
|
-
|
|
|
|
1
|
|
|
|
464
|
Germany
|
|
|
2,031
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,031
|
Ghana
|
|
|
2,022
|
|
|
|
16
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,038
|
India
|
|
|
12,533
|
|
|
|
499
|
|
|
|
-
|
|
|
|
(55
|
)
|
|
|
12,977
|
Mexico
|
|
|
8,701
|
|
|
|
6
|
|
|
|
8
|
|
|
|
1
|
|
|
|
8,716
|
Peru
|
|
|
528
|
|
|
|
43
|
|
|
|
-
|
|
|
|
-
|
|
|
|
571
|
South Africa
|
|
|
1,917
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,918
|
Uganda
|
|
|
1,263
|
|
|
|
5
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
1,265
|
Total
|
|
|
69,519
|
|
|
|
958
|
|
|
|
4,759
|
|
|
|
(72
|
)
|
|
|
75,164
|
(1) Excludes in-building and outdoor distributed antenna system networks.
|
|
|
|
|
|
|
UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION
OF DEFINED FINANCIAL MEASURES
|
(In thousands, except 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 December 31,
|
|
|
Twelve Months Ended
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net income
|
|
|
$
|
181,597
|
|
|
|
$
|
73,925
|
|
|
|
$
|
803,199
|
|
|
|
$
|
482,208
|
|
Income tax provision
|
|
|
12,628
|
|
|
|
36,180
|
|
|
|
62,505
|
|
|
|
59,541
|
|
Other expense
|
|
|
7,835
|
|
|
|
58,509
|
|
|
|
62,060
|
|
|
|
207,500
|
|
Loss on retirement of long-term obligations
|
|
|
4,920
|
|
|
|
734
|
|
|
|
3,473
|
|
|
|
38,701
|
|
Interest expense
|
|
|
147,481
|
|
|
|
139,380
|
|
|
|
580,234
|
|
|
|
458,296
|
|
Interest income
|
|
|
(5,853
|
)
|
|
|
(4,238
|
)
|
|
|
(14,002
|
)
|
|
|
(9,706
|
)
|
Other operating expenses
|
|
|
30,665
|
|
|
|
35,853
|
|
|
|
68,517
|
|
|
|
71,539
|
|
Depreciation, amortization and accretion
|
|
|
263,546
|
|
|
|
244,811
|
|
|
|
1,003,802
|
|
|
|
800,145
|
|
Stock-based compensation expense
|
|
|
18,445
|
|
|
|
14,983
|
|
|
|
80,153
|
|
|
|
68,138
|
|
Adjusted EBITDA
|
|
|
$
|
661,264
|
|
|
|
$
|
600,137
|
|
|
|
$
|
2,649,941
|
|
|
|
$
|
2,176,362
|
|
Divided by total revenue
|
|
|
1,046,314
|
|
|
|
941,969
|
|
|
|
4,100,048
|
|
|
|
3,361,407
|
|
Adjusted EBITDA Margin
|
|
|
63
|
%
|
|
|
64
|
%
|
|
|
65
|
%
|
|
|
65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation of net income to NAREIT Funds From
Operations and the calculation of AFFO and AFFO per Share are
presented below:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Twelve Months Ended December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Net Income
|
|
|
$
|
181,597
|
|
|
|
$
|
73,925
|
|
|
|
$
|
803,199
|
|
|
|
$
|
482,208
|
|
Real estate related depreciation, amortization and accretion
|
|
|
222,548
|
|
|
|
215,964
|
|
|
|
878,714
|
|
|
|
701,292
|
|
Losses from sale or disposal of real estate and real estate related
impairment charges
|
|
|
15,305
|
|
|
|
23,645
|
|
|
|
18,160
|
|
|
|
32,475
|
|
Dividends declared on preferred stock
|
|
|
(11,813
|
)
|
|
|
-
|
|
|
|
(23,888
|
)
|
|
|
-
|
|
Adjustments for unconsolidated affiliates and noncontrolling interest
|
|
|
(7,177
|
)
|
|
|
18,841
|
|
|
|
(1,815
|
)
|
|
|
41,000
|
|
NAREIT Funds From Operations
|
|
|
400,460
|
|
|
|
332,375
|
|
|
|
1,674,370
|
|
|
|
1,256,975
|
|
Straight-line revenue
|
|
|
(27,396
|
)
|
|
|
(41,696
|
)
|
|
|
(123,716
|
)
|
|
|
(147,664
|
)
|
Straight-line expense
|
|
|
8,664
|
|
|
|
8,413
|
|
|
|
38,378
|
|
|
|
29,732
|
|
Stock-based compensation expense
|
|
|
18,445
|
|
|
|
14,983
|
|
|
|
80,153
|
|
|
|
68,138
|
|
Non-cash portion of tax provision
|
|
|
(4,205
|
)
|
|
|
7,676
|
|
|
|
(6,707
|
)
|
|
|
7,865
|
|
Non-real estate related depreciation, amortization and accretion
|
|
|
40,998
|
|
|
|
28,847
|
|
|
|
125,088
|
|
|
|
98,853
|
|
Amortization of deferred financing costs, capitalized interest and
debt discounts and premiums and long-term deferred interest charges(1)
|
|
|
3,489
|
|
|
|
906
|
|
|
|
8,622
|
|
|
|
22,955
|
|
Other expense(2)
|
|
|
7,835
|
|
|
|
58,509
|
|
|
|
62,060
|
|
|
|
207,500
|
|
Loss on retirement of long-term obligations
|
|
|
4,920
|
|
|
|
734
|
|
|
|
3,473
|
|
|
|
38,701
|
|
Other operating expense(3)
|
|
|
15,360
|
|
|
|
12,208
|
|
|
|
50,357
|
|
|
|
39,064
|
|
Capital improvement capital expenditures
|
|
|
(24,740
|
)
|
|
|
(20,170
|
)
|
|
|
(75,041
|
)
|
|
|
(81,218
|
)
|
Corporate capital expenditures
|
|
|
(9,323
|
)
|
|
|
(5,778
|
)
|
|
|
(24,146
|
)
|
|
|
(30,383
|
)
|
Adjustments for unconsolidated affiliates and noncontrolling interest
|
|
|
7,177
|
|
|
|
(18,841
|
)
|
|
|
1,815
|
|
|
|
(41,000
|
)
|
AFFO
|
|
|
$
|
441,684
|
|
|
|
$
|
378,166
|
|
|
|
$
|
1,814,706
|
|
|
|
$
|
1,469,518
|
|
Divided by weighted average diluted shares outstanding
|
|
|
400,899
|
|
|
|
398,609
|
|
|
|
400,086
|
|
|
|
399,146
|
|
AFFO per Share
|
|
|
$
|
1.10
|
|
|
|
$
|
0.95
|
|
|
|
$
|
4.54
|
|
|
|
$
|
3.68
|
|
(1) Includes accrued non-cash interest expense attributable to
joint-venture loans.
(2) Primarily includes unrealized loss on foreign currency exchange rate
fluctuations.
(3) Primarily includes impairments and transaction related costs.
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