Market Overview

American Tower Corporation Reports Second Quarter 2018 Financial Results

Share:

CONSOLIDATED HIGHLIGHTS
Second Quarter 2018

Total revenue increased 7.1% to $1,781 million
● Property revenue
increased 6.8% to $1,749 million
● Net income decreased 19.1% to
$314 million
● Adjusted EBITDA increased 6.2% to $1,084 million

Consolidated AFFO increased 16.4% to $844 million
● Consolidated
AFFO per Share increased 13.1% to $1.90

American Tower Corporation (NYSE:AMT) today reported financial results
for the quarter ended June 30, 2018.

Jim Taiclet, American Tower's Chief Executive Officer, stated, "The
rapid adoption of unlimited data plans in the U.S. wireless market has
elevated aggregate year-over-year mobile data usage growth to roughly
40%. This is in turn fueling record levels of U.S. commenced new
business for American Tower, resulting in Organic Tenant Billings Growth
of 7.4% in the second quarter. Furthermore, given this robust data
growth, deployment of new spectrum and the introduction of advanced
technology across our U.S. tenant base, we are increasing our full year
2018 expectations for U.S. Organic Tenant Billings Growth to
approximately 7%. We also anticipate a multiyear period of elevated
demand in the U.S. as our tenants invest in 4G capacity and quality
while launching mobile 5G networks, enhanced Internet of Things services
and other initiatives that we expect will sustain demand for our
comprehensive telecommunications real estate portfolio.

"Our Latin America segment posted second quarter Organic Tenant Billings
Growth in excess of 12%, reflecting especially strong trends in Mexico
and Brazil, and we also saw consistent, steady results in EMEA. In
India, where we recently added approximately 20,000 Vodafone and Idea
Cellular sites, the carrier consolidation process is progressing as we
anticipated. We fully expect the reordered India mobile industry to
invest significantly to bring 4G to its subscriber base once the carrier
mergers that are underway are completed. Taken together, we expect our
highly diversified international business to deliver strong, sustainable
growth for many years to come."

CONSOLIDATED OPERATING RESULTS OVERVIEW
American Tower
generated the following operating results for the quarter ended June 30,
2018 (all comparative information is presented against the quarter ended
June 30, 2017). The Company is reporting its results in millions rather
than thousands and, as a result, certain rounding adjustments have been
made to prior-period amounts.

($ in millions, except per share amounts.)       Q2 2018(1)     Growth Rate
Total revenue $ 1,781 7.1 %
Total property revenue $ 1,749 6.8 %
Total Tenant Billings Growth $ 120 9.1 %
Organic Tenant Billings Growth $ 76 5.7 %
Property Gross Margin $ 1,199 5.7 %
Property Gross Margin % 68.6 %
Net income(2) $ 314 (19.1 )%
Net income attributable to AMT common stockholders(2) $ 307 (10.9 )%
Net income attributable to AMT common stockholders per diluted share(2) $ 0.69 (13.8 )%
Adjusted EBITDA $ 1,084 6.2 %
Adjusted EBITDA Margin % 60.9 %
 
Nareit Funds From Operations (FFO) attributable to AMT common
stockholders
$ 711 4.7 %
Consolidated AFFO $ 844 16.4 %
Consolidated AFFO per Share $ 1.90 13.1 %
AFFO attributable to AMT common stockholders $ 775 13.7 %
AFFO attributable to AMT common stockholders per Share $ 1.74 10.1 %
 
Cash provided by operating activities $ 940 18.2 %
Less: total cash capital expenditures(3) $ 228   8.5 %
Free Cash Flow $ 712 21.7 %
(1)     Inclusive of impacts from Indian Carrier Consolidation-Driven Churn.
For reconciliations of these impacts on key metrics, please see
tables below.
(2) Reflects an impairment charge of approximately $33 million,
primarily associated with assets in India, partially offset by an
income tax benefit, also in India. The net impact of these items
attributable to AMT common stockholders is approximately $11 million.
(3) Q2 2018 cash capital expenditures include $6.7 million of payments
on capital leases of property and equipment, which are presented in
the condensed consolidated statements of cash flows included herein
under Repayments of notes payable, credit facilities, senior notes,
secured debt and capital leases.
 

Certain wireless carriers in India are in the process of merging their
operations or exiting the marketplace. The Company's operational and
financial results during the second quarter of 2018 were impacted by
churn driven by this carrier consolidation process. We are disclosing
the additional financial metrics below to quantify the impacts of this
churn, which we expect to occur at varying rates over the next several
years, and to provide additional insight into the underlying long-term
trends across the Company's business excluding these impacts. The impact
of Indian Carrier Consolidation-Driven Churn on net income is not
provided, as the impact on all components of the net income measure
cannot be reasonably calculated.

 

Reconciliation of Indian Carrier Consolidation-Driven Churn
Impact to Operating Results:

($ in millions, except
per share amounts. Totals may not add due to rounding.)

      Q2 2018 Results     Q2 2017 Results     Growth Rates vs. Prior Year

Inclusive of
Indian Carrier
Consolidation-
Driven
Churn

   

Impact of
Indian Carrier
Consolidation-
Driven Churn

    Normalized

Inclusive of
Indian Carrier
Consolidation-
Driven
Churn

   

Impact of
Indian Carrier
Consolidation-
Driven Churn

    Normalized

Inclusive of
Indian Carrier
Consolidation-
Driven
Churn

   

Impact of
Indian Carrier
Consolidation-
Driven Churn

    Normalized
Total property revenue $ 1,749 $ 42 $ 1,792 $ 1,638 $ 1 $ 1,639 6.8 % 2.5 % 9.3 %
Adjusted EBITDA 1,084 24 1,108 1,021 1 1,022 6.2 % 2.3 % 8.5 %
Consolidated AFFO 844 19 864 725 1 726 16.4 % 2.6 % 19.0 %
Consolidated AFFO per Share 1.90 0.04 1.94 1.68 0.00 1.68 13.1 % 2.4 % 15.5 %
Consolidated Organic Tenant Billings 76 25 100 89 1 90 5.7 % 1.8 % 7.5 %
International Organic Tenant Billings 14 25 39 41 1 42 2.9 % 5.0 % 7.9 %
 

Please refer to "Non-GAAP and Defined Financial Measures" below for
definitions and other information regarding the Company's use of
non-GAAP measures. For financial information and reconciliations to GAAP
measures, please refer to the "Unaudited Selected Consolidated Financial
Information" below.

CAPITAL ALLOCATION OVERVIEW

Distributions – During the quarter ended June 30, 2018,
the Company declared the following regular cash distributions to its
common stockholders:

Common Stock Distributions       Q2 2018(1)
Distribution per share $ 0.77
Aggregate amount (in millions) $ 340
Year-over-year per share growth 20 %
_______________
(1)     The distribution declared was paid in the third quarter of 2018 to
stockholders of record as of the close of business on June 19, 2018.
 

Stock Repurchase Program During the second
quarter of 2018, the Company repurchased a total of approximately 0.7
million shares of its common stock under its stock repurchase program
for approximately $100 million. Subsequent to the end of the second
quarter, through July 24, 2018, the Company repurchased approximately
0.4 million additional shares of its common stock pursuant to the
program, for approximately $57 million, and had approximately $2.2
billion remaining under its existing stock repurchase programs.

Capital Expenditures During the second quarter of
2018, total capital expenditures were $228 million, of which $30 million
was for non-discretionary capital improvements and corporate capital
expenditures. For additional capital expenditure details, please refer
to the supplemental disclosure package available on the Company's
website.

Acquisitions During the second quarter of 2018,
the Company spent approximately $663 million to acquire over 10,000
sites, including over 9,700 sites in India through its previously
announced transaction with Idea Cellular Limited.

LEVERAGE, FINANCING AND OTHER EVENTS OVERVIEW

Leverage For the quarter ended June 30, 2018, the
Company's Net Leverage Ratio was 4.7x net debt (total debt less cash and
cash equivalents) to second quarter 2018 annualized Adjusted EBITDA.

Calculation of Net Leverage Ratio      
($ in millions, totals may not add due to rounding) As of June 30, 2018
Total debt $ 21,114
Less: Cash and cash equivalents 835
Net Debt 20,279
Divided By: Second quarter annualized Adjusted EBITDA(1) 4,336
Net Leverage Ratio 4.7x
_______________
(1)     Q2 2018 Adjusted EBITDA multiplied by four.
 

Liquidity As of June 30, 2018, the Company had
$4.0 billion of total liquidity, consisting of $0.8 billion in cash and
cash equivalents plus the ability to borrow an aggregate of over $3.1
billion under its revolving credit facilities, net of any outstanding
letters of credit.

On May 22, 2018, the Company issued €500.0 million aggregate principal
amount of Euro-denominated 1.950% senior unsecured notes due 2026. The
net proceeds from this issuance were used to repay a portion of existing
indebtedness under one of the Company's revolving credit facilities.

Other Events The Company has not received
interest payments from TV Azteca in 2018. Accordingly, the Company's
second quarter 2018 results reflect the reversal of approximately $3.4
million in previously recorded interest and no recognition of interest
due in the second quarter. The Company is pursuing collection of the
approximately $6 million in unpaid interest to date as well as the
reinstatement of regular payments pursuant to its contractual agreement
with TV Azteca.

FULL YEAR 2018 OUTLOOK

The following full year 2018 financial and operational estimates are
based on a number of assumptions that management believes to be
reasonable and reflect the Company's expectations as of July 31, 2018.
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's outlook is based on the following average foreign currency
exchange rates to 1.00 U.S. Dollar for July 31, 2018 through December
31, 2018: (a) 27.90 Argentinean Pesos; (b) 3.85 Brazilian Reais; (c) 645
Chilean Pesos; (d) 2,930 Colombian Pesos; (e) 0.86 Euros; (f) 4.75
Ghanaian Cedi; (g) 69.10 Indian Rupees; (h) 20.00 Mexican Pesos; (i) 360
Nigerian Naira; (j) 5,690 Paraguayan Guarani; (k) 3.30 Peruvian Soles;
(l) 13.60 South African Rand; and (m) 3,850 Ugandan Shillings.

The Company is reducing the midpoint of its full year 2018 outlook for
property revenue, net income and Adjusted EBITDA by $60 million, $80
million and $30 million, respectively, and reiterating the midpoint of
its outlook for Consolidated AFFO.

The Company's outlook reflects estimated unfavorable impacts from
foreign currency exchange rate fluctuations to property revenue,
Adjusted EBITDA and Consolidated AFFO, of approximately $116 million,
$61 million and $50 million, respectively, as compared to the Company's
prior 2018 outlook. The impact of foreign currency exchange rate
fluctuations on net income is not provided, as the impact on all
components of the net income measure cannot be calculated without
unreasonable effort. Further, the Company's revised outlook incorporates
a reduction of approximately $11 million in TV Azteca interest income as
compared to its prior outlook.

The Company's full year 2018 outlook also reflects estimated unfavorable
impacts from Indian Carrier Consolidation-Driven Churn on property
revenue, Adjusted EBITDA and Consolidated AFFO of approximately $180
million, $115 million and $90 million, respectively, inclusive of an
expected reduction in pass-through revenue of approximately $60 million.
At this time, the Company expects the impacts of Indian Carrier
Consolidation-Driven Churn to last for several years and anticipates
that churn rates in India will return to lower levels once the
consolidation process is complete. The Company is providing key outlook
measures adjusted to quantify the impacts of Indian Carrier
Consolidation-Driven Churn on such measures as it believes that these
adjusted measures better reflect the long-term trajectory of its
recurring business and provide investors with a more comprehensive
analysis of the Company's business. The impact of Indian Carrier
Consolidation-Driven Churn on net income is not provided, as the impact
on all components of the net income measure cannot be calculated without
unreasonable effort.

Additional information pertaining to the impact of foreign currency,
London Interbank Offered Rate (LIBOR) fluctuations and Indian Carrier
Consolidation-Driven Churn on the Company's outlook has been provided in
the supplemental disclosure package available on the Company's website.

2018 Outlook ($ in millions)       Full Year 2018    

Midpoint
Growth

Total property revenue(1) $ 6,840     to     $ 6,970 5.2%
Net income 1,275 to 1,335 6.5%
Adjusted EBITDA 4,255 to 4,315 4.8%
Consolidated AFFO 3,200 to 3,260 11.3%
_______________
(1)     Includes U.S. property revenue of $3,770 million to $3,810 million
and international property revenue of $3,070 million to $3,160
million, reflecting midpoint growth rates of 5.1% and 5.2%,
respectively. The U.S. growth rate reflects a negative impact of
approximately 3% associated with a decrease in non-cash
straight-line revenue recognition. The international growth rate
includes an estimated negative impact of approximately 6%
attributable to Indian Carrier Consolidation-Driven Churn and
approximately 5% from the translational impacts of foreign currency
exchange fluctuations. International property revenue reflects the
Company's Latin America, EMEA and Asia segments.
 

2018 Outlook for Total Property revenue, at the midpoint,
includes the following components
(1):
($
in millions, totals may not add due to rounding.)

      U.S. Property     International Property(2)     Total Property
International pass-through revenue N/A $ 915 $ 915
Straight-line revenue 45 33 78
_______________
(1)     For additional discussion regarding these components, please refer
to "Revenue Components" below.
(2) International property revenue reflects the Company's Latin America,
EMEA and Asia segments.
 

2018 Outlook for Total Tenant Billings Growth, at the midpoint,
includes the following components
(1):
(Totals
may not add due to rounding.)

      U.S. Property    

International
Property(2)

    Total Property
Organic Tenant Billings ~7% ~2% >5%
New Site Tenant Billings >0.5% >8% ~3-4%
Total Tenant Billings Growth >7.5% ~10% >8%
_______________
(1)     For additional discussion regarding the component growth rates,
please refer to "Revenue Components" below.
(2) International property revenue reflects the Company's Latin America,
EMEA and Asia segments.
 

Reconciliation of Indian Carrier Consolidation-Driven Churn
Impact to 2018 Outlook:

($ in millions, except per
share amounts. Totals may not add due to rounding.)

      FY 2017 Results     2018 Outlook, at the Midpoint     Midpoint Growth Rates vs. Prior Year

Inclusive of
Indian Carrier
Consolidation-
Driven
Churn

   

Impact of
Indian Carrier
Consolidation-
Driven Churn

    Normalized

Inclusive of
Indian Carrier
Consolidation-
Driven
Churn

   

Impact of
Indian Carrier
Consolidation-
Driven Churn

    Normalized

Inclusive of
Indian Carrier
Consolidation-
Driven
Churn

   

Impact of
Indian Carrier
Consolidation-
Driven Churn

    Normalized
Total property revenue $ 6,566 $ 9 $ 6,575 $ 6,905 $ 180 $ 7,085 5.2 % 2.6 % 7.8 %
Adjusted EBITDA 4,090 9 4,098 4,285 115 4,400 4.8 % 2.6 % 7.4 %
Consolidated AFFO 2,902 7 2,909 3,230 90 3,320 11.3 % 2.8 % 14.1 %
Consolidated AFFO per Share(1) 6.72 0.02 6.74 7.30 0.20 7.50 8.6 % 2.6 % 11.3 %
Consolidated Organic Tenant Billings 347 9 356 270 110 380

>5

%

~2

%

>7

%

International Organic Tenant Billings 152 9 161 35 110 145

~2

%

~5-6

%

>7

%

_______________
(1)     Assuming 2018 weighted average diluted share count of approximately
442.5 million shares.
 

Outlook for Capital Expenditures:
($ in millions,
totals may not add due to rounding.)

     

Full Year 2018

Discretionary capital projects(1) $ 250     to     $ 290
Ground lease purchases 150 to 170
Start-up capital projects 90 to 100
Redevelopment 210 to 230
Capital improvement 140 to 150
Corporate 10 10
Total $ 850 to $ 950
_______________
(1)     Includes the construction of approximately 2,000 to 3,000
communications sites globally.
 

Reconciliation of Outlook for Adjusted EBITDA to Net income:
($
in millions, totals may not add due to rounding.)

      Full Year 2018
Net income $ 1,275     to     $ 1,335
Interest expense 840 to 820
Depreciation, amortization and accretion 1,770 to 1,810
Income tax benefit (20 ) to
Stock-based compensation expense 130 130
Other, including other operating expenses, interest income, gain
(loss) on retirement of long-term obligations and other income
(expense)(1)
260   to 220
Adjusted EBITDA $ 4,255   to $ 4,315
_______________
(1)     Includes impact of impairments, primarily in India.
 

Reconciliation of Outlook for Consolidated AFFO to Net income:
($
in millions, totals may not add due to rounding.)

      Full Year 2018
Net income $ 1,275     to     $ 1,335
Straight-line revenue (78 ) (78 )
Straight-line expense 65 65
Depreciation, amortization and accretion 1,770 to 1,810
Stock-based compensation expense 130 130
Deferred portion of income tax (119 ) to (120 )
Other, including other operating expense, amortization of deferred
financing costs, capitalized interest, debt discounts and premiums,
gain (loss) on retirement of long-term obligations, other income
(expense), long-term deferred interest charges and dividends on
preferred stock(1)
307 to 278
Capital improvement capital expenditures (140 ) to (150 )
Corporate capital expenditures (10 ) (10 )
Consolidated AFFO $ 3,200   to $ 3,260  
_______________
(1)     Includes impact of impairments, primarily in India.
 

Conference Call Information
American Tower will host a
conference call today at 8:30 a.m. ET to discuss its financial results
for the quarter ended June 30, 2018 and its updated outlook for 2018.
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: (800) 260-0702
International dial-in: (651)
291-1170
Passcode: 451156

When available, a replay of the call can be accessed until 11:59 p.m. ET
on August 15, 2018. The replay dial-in numbers are as follows:

U.S./Canada dial-in: (800) 475-6701
International dial-in: (320)
365-3844
Passcode: 451156

American Tower will also sponsor a live simulcast and replay of the call
on its website, www.americantower.com.

About American Tower
American Tower, one of the largest
global REITs, is a leading independent owner, operator and developer of
multitenant communications real estate with a portfolio of approximately
170,000 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 (FFO) attributable to American Tower Corporation common
stockholders, Consolidated Adjusted Funds From Operations (AFFO), AFFO
attributable to American Tower Corporation common stockholders,
Consolidated AFFO per Share, AFFO attributable to American Tower
Corporation common stockholders per Share, Free Cash Flow, Net Debt, Net
Leverage Ratio and Indian Carrier Consolidation-Driven Churn. In
addition, the Company presents: Tenant Billings, Tenant Billings Growth,
Organic Tenant Billings Growth and New Site Tenant Billings Growth.

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 and are commonly used across its industry peer group. As
outlined in detail below, the Company believes that these measures can
assist in comparing company performance on a consistent basis
irrespective of depreciation and amortization or capital structure,
while also providing valuable incremental insight into the underlying
operating trends of its business.

Depreciation and amortization can vary significantly among companies
depending on accounting methods, particularly where acquisitions or
non-operating factors, including historical cost basis, are involved.
The Company's Non-GAAP and Defined Financial measures may not be
comparable to similarly titled measures used by other companies.

Revenue Components

In addition to reporting total revenue, the Company believes that
providing transparency around the components of its revenue provides
investors with insight into the indicators of the underlying demand for,
and operating performance of, its real estate portfolio. Accordingly,
the Company has provided disclosure of the following revenue components:
(i) Tenant Billings, (ii) New Site Tenant Billings; (iii) Organic Tenant
Billings; (iv) International pass-through revenue; (v) Straight-line
revenue; (vi) Pre-paid amortization revenue; (vii) Foreign currency
exchange impact; and (viii) Other revenue.

Tenant Billings: The majority of the Company's revenue is
generated from non-cancellable, long-term tenant leases. Revenue from
Tenant Billings reflects several key aspects of the Company's real
estate business: (i) "colocations/amendments" reflects new tenant leases
for space on existing towers and amendments to existing leases to add
additional tenant equipment; (ii) "escalations" reflects contractual
increases in billing rates, which are typically tied to fixed
percentages or a variable percentage based on a consumer price index;
(iii) "cancellations" reflects the impact of tenant lease terminations
or non-renewals or, in limited circumstances, when the lease rates on
existing leases are reduced; and (iv) "new sites" reflects the impact of
new property construction and acquisitions.

New Site Tenant Billings: Day-one Tenant Billings associated with
sites that have been built or acquired since the beginning of the
prior-year period. Incremental colocations/amendments, escalations or
cancellations that occur on these sites after the date of their addition
to our portfolio are not included in New Site Tenant Billings. The
Company believes providing New Site Tenant Billings enhances an
investor's ability to analyze the Company's existing real estate
portfolio growth as well as its development program growth, as the
Company's construction and acquisition activities can drive variability
in growth rates from period to period.

Organic Tenant Billings: Tenant Billings on sites that the
Company has owned since the beginning of the prior-year period, as well
as Tenant Billings activity on new sites that occurred after the date of
their addition to the Company's portfolio.

International pass-through revenue: A portion of the Company's
pass-through revenue is based on power and fuel expense reimbursements
and therefore subject to fluctuations in fuel prices. As a result,
revenue growth rates may fluctuate depending on the market price for
fuel in any given period, which is not representative of the Company's
real estate business and its economic exposure to power and fuel costs.
Furthermore, this expense reimbursement mitigates the economic impact
associated with fluctuations in operating expenses, such as power and
fuel costs and land rents in certain of the Company's markets. As a
result, the Company believes that it is appropriate to provide insight
into the impact of pass-through revenue on certain revenue growth rates.

Straight-line revenue: Under GAAP, the Company recognizes revenue
on a straight-line basis over the term of the contract for certain of
its tenant leases. Due to the Company's significant base of
non-cancellable, long-term tenant leases, this can result in significant
fluctuations in growth rates upon tenant lease signings and renewals
(typically increases), when amounts billed or received upfront upon
these events are initially deferred. These signings and renewals are
only a portion of the Company's underlying business growth and can
distort the underlying performance of our Tenant Billings Growth. As a
result, the Company believes that it is appropriate to provide insight
into the impact of straight-line revenue on certain growth rates in
revenue and select other measures.

Pre-paid amortization revenue: The Company recovers a portion of
the costs it incurs for the redevelopment and development of its
properties from its tenants. These upfront payments are then amortized
over the initial term of the corresponding tenant lease. Given this
amortization is not necessarily directly representative of underlying
leasing activity on its real estate portfolio, (i.e.: does not have a
renewal option or escalation as our tenant leases do) the Company
believes that it is appropriate to provide insight into the impact of
pre-paid amortization revenue on certain revenue growth rates to provide
transparency into the underlying performance of our real estate business.

Foreign currency exchange impact: The majority of the Company's
international revenue and operating expenses are denominated in each
country's local currency. As a result, foreign currency fluctuations may
distort the underlying performance of our real estate business from
period to period, depending on the movement of foreign currency exchange
rates versus the U.S. Dollar. The Company believes it is appropriate to
quantify the impact of foreign currency exchange fluctuations on its
reported growth to provide transparency into the underlying performance
of its real estate business.

Other revenue: Other revenue represents revenue not captured by
the above listed items and can include items such as tenant settlements
and fiber solutions revenue.

Non-GAAP and Defined Financial Measure
Definitions

Tenant Billings Growth: The increase or decrease resulting from a
comparison of Tenant Billings for a current period with Tenant Billings
for the corresponding prior-year period, in each case adjusted for
foreign currency exchange fluctuations. The Company believes this
measure provides valuable insight into the growth in recurring Tenant
Billings and underlying demand for its real estate portfolio.

Organic Tenant Billings Growth: The portion of Tenant Billings
Growth attributable to Organic Tenant Billings. The Company believes
that organic growth is a useful measure of its ability to add tenancy
and incremental revenue to its assets for the reported period, which
enables investors and analysts to gain additional insight into the
relative attractiveness, and therefore the value, of the Company's
property assets.

New Site Tenant Billings Growth: The portion of Tenant Billings
Growth attributable to New Site Tenant Billings. The Company believes
this measure provides valuable insight into the growth attributable to
Tenant Billings from recently acquired or constructed properties.

Indian Carrier Consolidation-Driven Churn: Tenant cancellations
specifically attributable to short-term carrier consolidation in India.
Includes impacts of carrier exits from the marketplace and carrier
cancellations as a result of consolidation but excludes normal course
churn. The Company believes that providing this additional metric
enhances transparency and provides a better understanding of its
recurring business without the impact of what it believes to be a
transitory event.

Gross Margin: 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 believes this measure provides valuable insight into the
site-level profitability of its assets.

Operating Profit: Gross Margin less selling, general,
administrative and development expense, excluding stock-based
compensation expense and corporate expenses. The Company believes this
measure provides valuable insight into the site-level profitability of
its assets while also taking into account the overhead expenses required
to manage each of its operating segments.

For segment reporting purposes, the Latin America property segment
Operating Profit and Gross Margin also include interest income
(expense), TV Azteca, net. Operating Profit and Gross Margin are before
interest income, interest expense, gain (loss) on retirement of
long-term obligations, other income (expense), net income (loss)
attributable to noncontrolling interest and income tax benefit
(provision).

Operating Profit Margin: The percentage that results from
dividing Operating Profit by revenue.

Adjusted EBITDA: Net income before 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 believes this measure provides valuable insight
into the profitability of its operations while at the same time taking
into account the central overhead expenses required to manage its global
operations. In addition, it is a widely used performance measure across
the telecommunications real estate sector.

Adjusted EBITDA Margin: The percentage that results from dividing
Adjusted EBITDA by total revenue.

Nareit Funds From Operations (FFO), as defined by the National
Association of Real Estate Investment Trusts (Nareit), attributable to
American Tower Corporation common stockholders:
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 on preferred stock, and
including adjustments for (i) unconsolidated affiliates and (ii)
noncontrolling interests. The Company believes this measure provides
valuable insight into the operating performance of its property assets
by excluding the charges described above, particularly depreciation
expenses, given the high initial, up-front capital intensity of the
Company's operating model. In addition, it is a widely used performance
measure across the telecommunications real estate sector.

Consolidated Adjusted Funds From Operations (AFFO): Nareit FFO
attributable to American Tower Corporation common stockholders before
(i) straight-line revenue and expense, (ii) stock-based compensation
expense, (iii) the deferred portion of income tax, (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 interests, less cash
payments related to capital improvements and cash payments related to
corporate capital expenditures. The Company believes this measure
provides valuable insight into the operating performance of its property
assets by further adjusting the Nareit FFO attributable to American
Tower Corporation common stockholders metric to exclude the factors
outlined above, which if unadjusted, may cause material fluctuations in
Nareit FFO attributable to American Tower Corporation common
stockholders growth from period to period that would not be
representative of the underlying performance of the Company's property
assets in those periods. In addition, it is a widely used performance
measure across the telecommunications real estate sector.

Adjusted Funds From Operations (AFFO) attributable to American Tower
Corporation common stockholders:
Consolidated AFFO, excluding the
impact of noncontrolling interests on both Nareit FFO attributable to
American Tower Corporation common stockholders and the other line items
included in the calculation of Consolidated AFFO. The Company believes
that providing this additional metric enhances transparency, given the
minority interests in its Indian and European businesses as a result of
the Company's Viom transaction and European joint venture with PGGM,
which both closed in 2016.

Consolidated AFFO per Share: Consolidated AFFO divided by the
diluted weighted average common shares outstanding.

AFFO attributable to American Tower Corporation common stockholders
per Share:
AFFO attributable to American Tower Corporation common
stockholders divided by the diluted weighted average common shares
outstanding.

Free Cash Flow: Cash provided by operating activities less total
cash capital expenditures, including payments on capital leases of
property and equipment. The Company believes that Free Cash Flow is
useful to investors as the basis for comparing our performance and
coverage ratios with other companies in its industry, although this
measure of Free Cash Flow may not be directly comparable to similar
measures used by other companies.

Net Debt: Total long-term debt, including current portion, less
cash and cash equivalents.

Net Leverage Ratio: Net Debt divided by the quarter's annualized
Adjusted EBITDA (the quarter's Adjusted EBITDA multiplied by four). The
Company believes that including this calculation is important for
investors and analysts given it is a critical component underlying its
credit agency ratings.

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 2018 outlook and other targets, our expectations regarding
Indian Carrier Consolidation-Driven Churn and factors that could affect
our expectations, foreign currency exchange rates, our expectations
regarding TV Azteca interest payments and our expectations 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) a significant
decrease in leasing demand for our communications infrastructure would
materially and adversely affect our business and operating results, and
we cannot control that demand; (2) increasing competition within our
industry for tenants may materially and adversely affect our revenue;
(3) if our tenants consolidate their operations, exit the
telecommunications business or share site infrastructure to a
significant degree, our growth, revenue and ability to generate positive
cash flows could be materially and adversely affected; (4) our business
is subject to government and tax regulations and changes in current or
future laws or regulations could restrict our ability to operate our
business as we currently do or impact our competitive landscape; (5) 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; (6) 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; (7) our
expansion initiatives involve a number of risks and uncertainties,
including those related to integrating acquired or leased assets, that
could adversely affect our operating results, disrupt our operations or
expose us to additional risk; (8) competition for assets could adversely
affect our ability to achieve our return on investment criteria; (9) new
technologies or changes in a tenant's business model could make our
tower leasing business less desirable and result in decreasing revenues
and operating results; (10) our leverage and debt service obligations
may materially and adversely affect our ability to raise additional
financing to fund capital expenditures, future growth and expansion
initiatives and to satisfy our distribution requirements; (11) if we
fail to remain qualified for taxation as a REIT, we will be subject to
tax at corporate income tax rates, which may substantially reduce funds
otherwise available, and even if we qualify for taxation as a REIT, we
may face tax liabilities that impact earnings and available cash flow;
(12) complying with REIT requirements may limit our flexibility or cause
us to forego otherwise attractive opportunities; (13) 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, which may
jeopardize our qualification for taxation as a REIT; (14) 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; (15) our costs could increase and our revenues could
decrease due to perceived health risks from radio emissions, especially
if these perceived risks are substantiated; (16) we could have liability
under environmental and occupational safety and health laws; (17) if we
are unable to protect our rights to the land under our towers, it could
adversely affect our business and operating results; and (18) 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 those towers will be eliminated. 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-K for the year ended December 31, 2017, under the caption "Risk
Factors". We undertake no obligation to update the information contained
in this press release to reflect subsequently occurring events or
circumstances.

         

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In millions)

 
June 30, 2018 December 31, 2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 834.5 $ 802.1
Restricted cash 135.6 152.8
Short-term investments 80.8 1.0
Accounts receivable, net 506.9 513.6
Prepaid and other current assets 569.3   568.6  
Total current assets 2,127.1   2,038.1  
PROPERTY AND EQUIPMENT, net 11,067.0 11,101.0
GOODWILL 5,526.6 5,638.4
OTHER INTANGIBLE ASSETS, net 11,758.2 11,783.3
DEFERRED TAX ASSET 183.7 204.4
DEFERRED RENT ASSET 1,518.6 1,499.0
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS 1,024.5   950.1  
TOTAL $ 33,205.7   $ 33,214.3  
LIABILITIES
CURRENT LIABILITIES:
Accounts payable $ 137.0 $ 142.9
Accrued expenses 782.5 854.3
Distributions payable 344.9 304.4
Accrued interest 178.1 166.9
Current portion of long-term obligations 2,791.8 774.8
Unearned revenue 328.6   268.8  
Total current liabilities 4,562.9   2,512.1  
LONG-TERM OBLIGATIONS 18,322.0 19,430.3
ASSET RETIREMENT OBLIGATIONS 1,185.8 1,175.3
DEFERRED TAX LIABILITY 752.2 898.1
OTHER NON-CURRENT LIABILITIES 1,246.9   1,244.2  
Total liabilities 26,069.8   25,260.0  
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS 1,009.3 1,126.2
EQUITY:
Preferred stock, Series B 0.0
Common stock 4.5 4.4
Additional paid-in capital 10,251.9 10,247.5
Distributions in excess of earnings (1,121.6 ) (1,058.1 )
Accumulated other comprehensive loss (2,510.1 ) (1,978.3 )
Treasury stock (1,074.0 ) (974.0 )
Total American Tower Corporation equity 5,550.7 6,241.5
Noncontrolling interests 575.9   586.6  
Total equity 6,126.6   6,828.1  
TOTAL $ 33,205.7   $ 33,214.3  
 
         

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

 
Three Months Ended June 30, Six Months Ended June 30,
2018     2017 2018     2017
REVENUES:
Property $ 1,749.4 $ 1,638.1 $ 3,459.8 $ 3,232.2
Services 31.5   24.4   62.9   46.5  
Total operating revenues 1,780.9   1,662.5   3,522.7   3,278.7  
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property (including stock-based compensation expense of $0.5, $0.6,
$1.2 and $1.3, respectively)
547.2 507.2 1,054.6 993.4
Services (including stock-based compensation expense of $0.2, $0.2,
$0.5 and $0.4, respectively)
13.1 10.0 25.6 16.5
Depreciation, amortization and accretion 449.7 396.4 896.0 817.5
Selling, general, administrative and development expense (including
stock-based compensation expense of $24.1, $25.0, $65.8 and $60.3,
respectively)
157.9 153.1 362.8 317.9
Other operating expenses(1) 67.0   18.9   234.8   25.1  
Total operating expenses 1,234.9   1,085.6   2,573.8   2,170.4  
OPERATING INCOME 546.0   576.9   948.9   1,108.3  
OTHER INCOME (EXPENSE):
Interest (expense) income, TV Azteca (net of interest expense of
$0.0, $0.3, $0.3 and $0.6, respectively)
(3.4 ) 2.8 (0.7 ) 5.5
Interest income 18.4 8.3 33.8 18.2
Interest expense (207.9 ) (187.0 ) (407.5 ) (370.7 )
Loss on retirement of long-term obligations (0.3 ) (55.7 )
Other (expense) income (including unrealized foreign currency
(losses) gains of ($39.1), $7.7, ($14.2) and $35.7, respectively)
(34.8 ) 11.7   (7.0 ) 41.0  
Total other expense (227.7 ) (164.5 ) (381.4 ) (361.7 )
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 318.3 412.4 567.5 746.6
Income tax (provision) benefit(2) (3.9 ) (23.9 ) 27.2   (50.7 )
NET INCOME 314.4 388.5 594.7 695.9
Net income attributable to noncontrolling interests (7.7 ) (21.5 ) (2.8 ) (12.8 )
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS 306.7 367.0 591.9 683.1
Dividends on preferred stock   (22.8 ) (9.4 ) (49.6 )
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON
STOCKHOLDERS
$ 306.7   $ 344.2   $ 582.5   $ 633.5  
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common
stockholders
$ 0.69   $ 0.81   $ 1.33   $ 1.48  
Diluted net income attributable to American Tower Corporation common
stockholders
$ 0.69   $ 0.80   $ 1.32   $ 1.47  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC 441,497   427,298   438,328   427,288  
DILUTED 444,362   430,487   441,513   430,444  
_______________
(1)     Three months and six months ended June 30, 2018 reflect impairment
charges of approximately $33 million and $181 million, respectively,
primarily associated with assets in India, partially offset by
income tax benefits, also in India. The net impact of these items
attributable to AMT common stockholders for the three and six months
ended June 30, 2018 was approximately $11 million and $70 million,
respectively.
(2) Six months ended June 30, 2018 includes income tax benefit primarily
attributable to an income tax benefit in India recognized during the
period.
 
     

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(1)

(In millions)

 
Six Months Ended June 30,
2018     2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 594.7 $ 695.9
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation, amortization and accretion 896.0 817.5
Stock-based compensation expense 67.5 62.0
Loss on early retirement of long-term obligations 55.7
Other non-cash items reflected in statements of operations 206.0 (50.2 )
Increase in net deferred rent balances (10.7 ) (71.5 )
Increase in assets (68.9 ) (102.0 )
Increase in liabilities 47.2   65.4  
Cash provided by operating activities 1,731.8   1,472.8  
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for purchase of property and equipment and construction
activities
(424.9 ) (371.5 )
Payments for acquisitions, net of cash acquired (1,336.5 ) (857.2 )
Proceeds from sales of short-term investments and other non-current
assets
894.5 7.2
Payments for short-term investments (952.8 )
Deposits and other (23.3 ) 7.0  
Cash used for investing activities (1,843.0 ) (1,214.5 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit facilities 2,663.3 2,508.6
Proceeds from issuance of senior notes, net 584.9 1,279.4
Proceeds from term loan 1,500.0
Proceeds from issuance of securities in securitization transaction 500.0
Repayments of notes payable, credit facilities, senior notes,
secured debt and capital leases(2)
(4,257.4 ) (3,126.7 )
(Distributions to) contributions from noncontrolling interest
holders, net
(13.9 ) 265.3
Purchases of common stock (98.6 ) (641.4 )
Proceeds from stock options and ESPP 40.2 82.6
Distributions paid on common stock (635.6 ) (514.9 )
Distributions paid on preferred stock (18.9 ) (53.6 )
Payment for early retirement of long-term obligations (61.8 )
Deferred financing costs and other financing activities (55.1 ) (28.1 )
Purchase of noncontrolling interest (20.5 )  
Cash provided by (used for) financing activities 188.4   (290.6 )
Net effect of changes in foreign currency exchange rates on cash and
cash equivalents, and restricted cash
(62.0 ) 9.1  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, AND RESTRICTED
CASH
15.2 (23.2 )
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 954.9   936.5  
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 970.1   $ 913.3  
CASH PAID FOR INCOME TAXES, NET $ 44.6   $ 60.4  
CASH PAID FOR INTEREST $ 382.5   $ 352.0  
_______________
(1)     Reflects Financial Accounting Standards Board (FASB) guidance
requiring restricted cash be included with cash and cash equivalents.
(2) Six months ended June 30, 2018 and June 30, 2017 include $16.0
million and $16.1 million, respectively, of payments on capital
leases of property and equipment.
 
     

UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT

($ in millions, totals may not add due to rounding.)

 
Three Months Ended June 30, 2018
Property     Services     Total
U.S.    

Latin
America

    Asia(1)     EMEA    

Total
International

   

Total
Property

Segment revenues $ 957 $ 318 $ 308 $ 167 $ 792 $ 1,749 $ 32 $ 1,781
Segment operating expenses(2) 199 109 180 59 348 547 13 560
Interest expense, TV Azteca, net(3)   (3 )     (3 ) (3 )   (3 )
Segment Gross Margin $ 758   $ 205   $ 128   $ 108   $ 441   $ 1,199   $ 19   $ 1,218  
Segment SG&A(2) 44   19   15   18   52   96   3   99  
Segment Operating Profit $ 714   $ 186   $ 113   $ 91   $ 389   $ 1,104   $ 16   $ 1,119  
Segment Operating Profit Margin 75 % 59 % 37 % 54 % 49 % 63 % 50 % 63 %
 
Revenue Growth 6.7 % 10.8 % 4.5 % 4.4 % 7.0 % 6.8 % 29.1 % 7.1 %
Total Tenant Billings Growth 8.1 % 16.0 % 6.6 % 8.0 % 10.7 % 9.1 %
Organic Tenant Billings Growth 7.4 % 12.4 % (10.2 )% 6.8 % 2.9 % 5.7 %
 
 
Revenue Components(4)
Prior-Year Tenant Billings $ 830 $ 198 $ 179 $ 119 $ 497 $ 1,327
Colocations/Amendments 46 14 11 4 29 76
Escalations 26 11 3 6 20 46
Cancellations (10 ) (2 ) (33 ) (2 ) (37 ) (47 )
Other (1 ) 2   0   (0 ) 2   1  
Organic Tenant Billings $ 891   $ 223   $ 161   $ 127   $ 511   $ 1,402  
New Site Tenant Billings 6   7   30   1   39   45  
Total Tenant Billings $ 898   $ 230   $ 191   $ 129   $ 550   $ 1,447  
Foreign Currency Exchange Impact(5)   (15 ) (6 ) (0 ) (21 ) (21 )
Total Tenant Billings (Current Period) $ 898   $ 216   $ 184   $ 129   $ 528   $ 1,426  
 
Straight-Line Revenue 13 9 4 2 15 28
Prepaid Amortization Revenue 24 1 0 1 25
Other Revenue 23 17 (7 ) 1 12 35
International Pass-Through Revenue 83 130 35 249 249
Foreign Currency Exchange Impact(6)   (7 ) (5 ) (1 ) (12 ) (12 )
Total Property Revenue (Current Period) $ 957   $ 318   $ 308   $ 167   $ 792   $ 1,749  
_______________
(1)     Inclusive of impacts from Indian Carrier Consolidation-Driven Churn.
See quarterly supplemental materials package for additional detail.
(2) Excludes stock-based compensation expense.
(3) Represents reversal of interest income recognized in the prior
period due to nonpayment.
(4) All components of revenue, except those labeled current period, have
been translated at prior-period foreign currency exchange rates.
(5) Reflects foreign currency exchange impact on all components of Total
Tenant Billings.
(6) Reflects foreign currency exchange impact on components of revenue,
other than Total Tenant Billings.
 
     

UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT
(CONTINUED)

($ in millions, totals may not add due to rounding.)

 
Three Months Ended June 30, 2017
Property     Services     Total
U.S.    

Latin
America

    Asia(1)     EMEA    

Total
International

   

Total
Property

Segment revenues $ 897 $ 287 $ 295 $ 160 $ 741 $ 1,638 $ 24 $ 1,663
Segment operating expenses(2) 184 96 168 59 323 507 10 516
Interest income, TV Azteca, net   3       3   3     3  
Segment Gross Margin $ 714   $ 193   $ 127   $ 101   $ 421   $ 1,134   $ 15   $ 1,149  
Segment SG&A(2) 36   19   17   18   54   90   4   94  
Segment Operating Profit $ 677   $ 174   $ 110   $ 83   $ 367   $ 1,044   $ 11   $ 1,055  
Segment Operating Profit Margin 75 % 61 % 37 % 52 % 49 % 64 % 46 % 63 %
 
Revenue Growth 8.1 % 20.9 % 31.1 % 18.5 % 24.2 % 14.9 % 51.3 % 15.3 %
Total Tenant Billings Growth 6.4 % 13.0 % 32.0 % 25.8 % 22.4 % 11.8 %
Organic Tenant Billings Growth 6.2 % 11.1 % 10.1 % 8.9 % 10.3 % 7.6 %
 
 
Revenue Components(3)(4)
Prior-Year Tenant Billings $ 780 $ 168 $ 131 $ 99 $ 398 $ 1,177
Colocations/Amendments 38 9 15 5 29 67
Escalations 24 10 4 6 20 44
Cancellations (14 ) (1 ) (6 ) (1 ) (8 ) (22 )
Other (0 ) 1   0   (0 ) 0   (0 )
Organic Tenant Billings $ 828   $ 187   $ 144   $ 107   $ 438   $ 1,267  
New Site Tenant Billings 2   3   29   17   48   50  
Total Tenant Billings $ 830   $ 190   $ 173   $ 124   $ 487   $ 1,317  
Foreign Currency Exchange Impact(5)   8   6   (5 ) 10   10  
Total Tenant Billings (Current Period) $ 830   $ 198   $ 179   $ 119   $ 496   $ 1,327  
 
Straight-Line Revenue 36 8 4 2 14 51
Prepaid Amortization Revenue 26 0 0 1 26
Other Revenue 5 4 (6 ) (0 ) (2 ) 3
International Pass-Through Revenue 72 113 48 233 233
Foreign Currency Exchange Impact(6)   4   4   (10 ) (2 ) (2 )
Total Property Revenue (Current Period) $ 897   $ 287   $ 295   $ 160   $ 741   $ 1,638  
_______________
(1)     Inclusive of impacts from Indian Carrier Consolidation-Driven Churn.
See quarterly supplemental materials package for additional detail.
(2) Excludes stock-based compensation expense.
(3) All components of revenue, except those labeled current period, have
been translated at prior-period foreign currency exchange rates.
(4) Reflects reclassification of fiber solutions revenue from Tenant
Billings components to Other Revenue.
(5) Reflects foreign currency exchange impact on all components of Total
Tenant Billings.
(6) Reflects foreign currency exchange impact on components of revenue,
other than Total Tenant Billings.
 
 

UNAUDITED SELECTED CONSOLIDATED FINANCIAL INFORMATION

($ in millions, totals may not add due to rounding.)

The reconciliation of Adjusted EBITDA to net income and the
calculation of Adjusted EBITDA Margin are as follows:

      Three Months Ended June 30,
2018     2017
Net income $ 314.4 $ 388.5
Income tax provision 3.9 23.9
Other expense (income) 34.8 (11.7 )
Loss on retirement of long-term obligations 0.3
Interest expense 207.9 187.0
Interest income (18.4 ) (8.3 )
Other operating expenses 67.0 18.9
Depreciation, amortization and accretion 449.7 396.4
Stock-based compensation expense 24.8   25.8  
Adjusted EBITDA $ 1,084.1   $ 1,020.8  
Total revenue 1,780.9   1,662.5  
Adjusted EBITDA Margin 61 % 61 %
 
 

The reconciliation of Nareit FFO attributable to American Tower
Corporation common stockholders to net income and the calculation
of Consolidated AFFO, Consolidated AFFO per Share, AFFO
attributable to American Tower Corporation common stockholders and
AFFO attributable to American Tower Corporation common
stockholders per Share are presented below:

      Three Months Ended June 30,
2018     2017
Net income $ 314.4 $ 388.5
Real estate related depreciation, amortization and accretion 400.1 352.5
Losses from sale or disposal of real estate and real estate related
impairment charges
56.7 12.3
Dividends on preferred stock (22.8 )
Adjustments for unconsolidated affiliates and noncontrolling
interests
(60.2 ) (51.2 )
Nareit FFO attributable to AMT common stockholders $ 711.0   $ 679.3  
Straight-line revenue (27.5 ) (50.9 )
Straight-line expense 20.6 14.3
Stock-based compensation expense 24.8 25.8
Deferred portion of income tax(1) (16.0 ) (13.4 )
Non-real estate related depreciation, amortization and accretion 49.6 43.9
Amortization of deferred financing costs, capitalized interest and
debt discounts and premiums and long-term deferred interest charges
6.1 8.2
Other expense (income)(2) 34.8 (11.7 )
Loss on retirement of long-term obligations 0.3
Other operating expense(3) 10.3 6.4
Capital improvement capital expenditures (27.6 ) (24.8 )
Corporate capital expenditures (2.3 ) (3.5 )
Adjustments for unconsolidated affiliates and noncontrolling
interests
60.2   51.2  
Consolidated AFFO 844.0   725.1  
Adjustments for unconsolidated affiliates and noncontrolling
interests(4)
(69.3 ) (43.9 )
AFFO attributable to AMT common stockholders $ 774.7   $ 681.2  
Divided by weighted average diluted shares outstanding 444,362   430,487  
Consolidated AFFO per Share $ 1.90   $ 1.68  
AFFO attributable to AMT common stockholders per Share $ 1.74   $ 1.58  
_______________
(1)     Reflects tax benefit in India recorded in Q2 2018.
(2) Q2 2018 and Q2 2017 include unrealized losses (gains) on foreign
currency exchange rate fluctuations of $39.1 million and ($7.7)
million, respectively.
(3) Primarily includes integration and acquisition-related costs.
(4) Includes adjustments for the impact on both Nareit FFO attributable
to American Tower Corporation common stockholders and the other line
items included in the calculation of Consolidated AFFO.
 

View Comments and Join the Discussion!