BOSTON--(BUSINESS WIRE)--American Tower Corporation (NYSE:AMT) today reported financial results for the quarter ended June 30, 2016.
Jim Taiclet, American Tower’s Chief Executive Officer stated, “Our Company’s strong second quarter total Property Revenue growth of nearly 24% was powered by solid U.S. Organic Tenant Billings Growth of nearly 6%, and more than double that level in our international markets, at approximately 14%. Total Organic Tenant Billings grew by approximately 8% in the quarter and were further enhanced by an approximately 15% contribution in New Site Tenant Billings associated primarily with our Viom transaction in India and sites acquired from Bharti Airtel in Nigeria and TIM in Brazil.
American Tower’s consistent track record of performance is based on 20 years of dedication to developing a leadership position in the physical, intellectual and organizational capital that enables us to provide high quality telecommunications real estate to the world’s largest network operators in the U.S., Latin America, Asia and EMEA. We therefore believe that our company has built a sustainable competitive advantage that will drive continuing growth in Consolidated AFFO per share and in our dividend for many years to come.”
Capital Expenditures – During the second quarter of 2016, total capital expenditures were $169 million. For additional capital expenditure details, please refer to the supplemental disclosure package available on the Company’s website.
Acquisitions – During the second quarter of 2016, the Company spent $1.2 billion primarily to acquire 42,975 sites internationally.
This included the closing of the Company’s previously announced acquisition of a 51% controlling ownership interest in Viom Networks Limited (“Viom”) on April 21, 2016. The total cash consideration for the Viom acquisition was approximately 76 billion Indian Rupees (“INR”). The Company also assumed approximately INR 52 billion of debt at closing.
Liquidity – As of June 30, 2016, the Company had approximately $3.2 billion of total liquidity, consisting of over $0.4 billion in cash and cash equivalents plus the ability to borrow an aggregate of approximately $2.8 billion under its revolving credit facilities, net of any outstanding letters of credit.
FULL YEAR 2016 OUTLOOK
Please note that certain outlook disclosures have been updated in response to the Securities and Exchange Commission’s recently updated Compliance and Disclosure Interpretations on the use of non-GAAP financial measures. For comparability, outlook tables in their previous format, updated for our current expectations, have been included in the Appendix of this press release. Please note that in future disclosures, the tables in the previous format will no longer be available.
The following estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of July 28, 2016. 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.
The Company is raising the midpoint of its full year 2016 outlook for property revenue, Adjusted EBITDA and Consolidated AFFO by $10 million, $15 million and $15 million, respectively. This includes an approximately $7 million negative impact on all three metrics from the revenue reserve we recorded in Brazil in the second quarter as well as the impacts of foreign currency exchange fluctuations, as outlined below. The Company is reducing the midpoint of its full year 2016 outlook for net income by $70 million primarily as a result of increased expected depreciation and amortization expense.
The Company’s revised outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for the second half of 2016: (a) 3.50 Brazilian Reais; (b) 670 Chilean Pesos; (c) 3,100 Colombian Pesos; (d) 0.92 Euros; (e) 4.00 Ghanaian Cedi; (f) 68.40 Indian Rupees; (g) 18.90 Mexican Pesos; (h) 300 Nigerian Naira; (i) 3.40 Peruvian Soles; (j) 15.75 South African Rand; and (k) 3,400 Ugandan Shillings.
Based on these assumptions, the Company’s current outlook reflects favorable impacts of foreign currency fluctuations of approximately $1 million for total property revenue, $17 million for Adjusted EBITDA and $18 million for Consolidated AFFO, as compared to the Company’s previously issued full year outlook. Additional information pertaining to the impact of foreign currency fluctuations on the Company’s outlook has been provided in the supplemental disclosure package available on its website. The impact of foreign currency fluctuations on net income is not provided, as the impact on all components of the net income measure cannot be calculated without unreasonable effort.
About American Tower
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multi-tenant communications real estate with a portfolio of over 144,000 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.
