Market Overview

American Tower Corporation Reports First Quarter 2019 Financial Results

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CONSOLIDATED HIGHLIGHTS

First Quarter 2019

  • Total revenue increased 4.1% to $1,813 million
  • Property revenue increased 4.4% to $1,786 million
  • Net income increased 45.4% to $408 million
  • Adjusted EBITDA increased 4.9% to $1,114 million
  • Consolidated AFFO increased 6.7% to $861 million

American Tower Corporation (NYSE:AMT) today reported financial results
for the quarter ended March 31, 2019.

Jim Taiclet, American Tower's Chief Executive Officer, stated, "We began
2019 with a solid quarter of results, highlighted by strong global
leasing activity, 8.2% Organic Tenant Billings Growth in the U.S., the
construction of more than 700 new sites and a 20% dividend increase.

We remain focused on driving operational excellence, prudently deploying
capital and leveraging our innovation program to capitalize on exciting
future opportunities as wireless networks continue to advance. With our
portfolio of more than 170,000 towers, small cell systems and other
communications real estate, we believe we are well positioned to take
advantage of the global demand trends in mobile to continue driving
attractive growth and returns for years to come."

CONSOLIDATED OPERATING RESULTS OVERVIEW

American Tower generated the following operating results for the quarter
ended March 31, 2019 (all comparative information is presented against
the quarter ended March 31, 2018).

         
($ in millions, except per share amounts.)   Q1 2019(1) Growth Rate
Total revenue $ 1,813 4.1 %
Total property revenue $ 1,786 4.4 %
Total Tenant Billings Growth $ 109 7.8 %
Organic Tenant Billings Growth $ 50 3.5 %
Property Gross Margin $ 1,254 3.9 %
Property Gross Margin % 70.2 %
Net income(2) $ 408 45.4 %
Net income attributable to AMT common stockholders(2) $ 397 44.1 %
Net income attributable to AMT common stockholders per diluted share(2) $ 0.89 41.3 %
Adjusted EBITDA $ 1,114 4.9 %
Adjusted EBITDA Margin % 61.5 %
 
Nareit Funds From Operations (FFO) attributable to AMT common
stockholders
$ 770 2.9 %
Consolidated AFFO $ 861 6.7 %
Consolidated AFFO per Share $ 1.94 5.4 %
AFFO attributable to AMT common stockholders $ 818 7.7 %
AFFO attributable to AMT common stockholders per Share $ 1.84 6.4 %
 
Cash provided by operating activities $ 785 (0.8 )%
Less: total cash capital expenditures(3) $ 231   11.8 %
Free Cash Flow $ 555 (5.3 )%
 
_______________
(1)   Inclusive of the negative impacts of Indian Carrier
Consolidation-Driven Churn (ICCC). For reconciliations of these
impacts on key metrics, please see tables below.
(2) Q1 2019 growth rates positively impacted by the nonrecurrence of an
impairment charge of approximately $147 million, primarily related
to assets in India, partially offset by an income tax benefit in
India, both recorded in Q1 2018. The portion of these items
attributable to AMT common stockholders in Q1 2018 was approximately
$59 million.
(3) Q1 2019 cash capital expenditures include $12.8 million of finance
lease and perpetual land easement payments reported in cash flows
from financing activities in the condensed consolidated statements
of cash flows.
 

Certain wireless carriers in India are in the process of, or have
recently concluded, merging their operations or exiting the marketplace.
The Company's operational and financial results during the first quarter
of 2019 were impacted by churn driven by this carrier consolidation
process (Indian Carrier Consolidation-Driven Churn, "ICCC"). We are
disclosing the additional financial metrics below to provide insight
into the underlying long-term trends across the Company's business
excluding these impacts. We expect ICCC to impact our operational and
financial results at varying rates throughout the remainder of 2019 and
to result in an overall reduction in Indian contracted tenant revenue.
The impacts of ICCC on net income are 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.)

      Q1 2019 Results     Q1 2018 Results     Growth Rates vs. Prior Year
($ in millions) As Reported    

Impact of
ICCC(1)

    Normalized As Reported    

Impact of
ICCC(1)

    Normalized As Reported    

Impact of
ICCC(1)

    Normalized
Total property revenue $ 1,786 $ 89 $ 1,875 $ 1,710 $ 20 $ 1,730 4.4 % 4.0 % 8.4 %
Adjusted EBITDA 1,114 61 1,176 1,062 14 1,077 4.9 % 4.3 % 9.2 %
Consolidated AFFO 861 49 910 807 12 819 6.7 % 4.5 % 11.2 %
Consolidated AFFO per Share $ 1.94 $ 0.11 $ 2.05 $ 1.84 $ 0.03 $ 1.87 5.4 % 4.2 % 9.6 %
Consolidated Organic Tenant Billings 50 67 117 75 14 89 3.5 % 4.7 % 8.2 %
International Organic Tenant Billings (23 ) 67 45 23 14 37 (4.3 )% 12.6 % 8.3 %
 
_______________
(1)   Reflects the cumulative impacts of ICCC since 2017.
 

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 March 31, 2019,
the Company declared the following regular cash distributions to its
common stockholders:

       
Common Stock Distributions   Q1 2019(1)
Distributions per share $ 0.90
Aggregate amount (in millions) $ 398
Year-over-year per share growth 20.0 %
 
_______________
(1)   The distribution declared on March 7, 2019 was paid in the second
quarter of 2019 to stockholders of record as of the close of
business on April 11, 2019.
 

Capital Expenditures During the first quarter of
2019, total capital expenditures were $231 million, of which $32 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 first quarter of 2019,
the Company spent approximately $91 million for the acquisition of 107
communications sites, located primarily in international markets, and
other communications infrastructure assets.

Other Events – During the first quarter of 2019, the
Company completed its previously disclosed redemption of 50% of Tata
Teleservices Limited (Tata Teleservices) and Tata Sons' combined
holdings of ATC Telecom Infrastructure Private Limited (ATC TIPL) and
100% of Infrastructure Development Finance Company's (IDFC) holdings of
ATC TIPL, thereby increasing its ownership interest in ATC TIPL to
approximately 79%.

Subsequent to the end of the first quarter of 2019, Tata Teleservices
served notice of exercise of its put options with respect to 100% of its
remaining combined holdings with Tata Sons in ATC TIPL. The Company
expects to complete the redemption of the remaining put shares in 2019
for total consideration of approximately INR 24.8 billion (approximately
$359 million as of March 31, 2019), subject to regulatory approval.
After the completion of the redemption, the Company will hold an
approximately 92% ownership interest in ATC TIPL.

LEVERAGE AND FINANCING OVERVIEW

Leverage For the quarter ended March 31, 2019,
the Company's Net Leverage Ratio was 4.5x net debt (total debt less cash
and cash equivalents) to first quarter 2019 annualized Adjusted EBITDA.

     

Calculation of Net Leverage Ratio
($ in millions,
totals may not add due to rounding)

As of March 31, 2019
Total debt $ 21,204
Less: Cash and cash equivalents 1,005
Net Debt 20,199
Divided By: First quarter annualized Adjusted EBITDA(1) 4,458
Net Leverage Ratio 4.5x
 
_______________
(1)   Q1 2019 Adjusted EBITDA multiplied by four.
 

Liquidity As of March 31, 2019, the Company had
$3.6 billion of total liquidity, consisting of $1.0 billion in cash and
cash equivalents plus the ability to borrow an aggregate of $2.6 billion
under its revolving credit facilities, net of any outstanding letters of
credit.

On February 14, 2019, the Company entered into a loan agreement for a
new $1.3 billion unsecured term loan. The Company used the net proceeds
of this new term loan, together with cash on hand, to repay all
outstanding indebtedness under its 2018 term loan.

On March 15, 2019, the Company issued $650.0 million aggregate principal
amount of 3.375% senior unsecured notes due 2024 and $600.0 million
aggregate principal amount of 3.950% senior unsecured notes due 2029.
The Company used the net proceeds to repay existing indebtedness under
its 2013 credit facility and its 2014 credit facility.

Subsequent to the end of the first quarter, on April 22, 2019, the
Company completed its previously announced redemption of all of its
outstanding 5.050% senior unsecured notes due 2020 for an aggregate
principal amount of $700 million.

FULL YEAR 2019 OUTLOOK

The following full year 2019 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 May 3, 2019.
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 May 3, 2019 through December 31,
2019: (a) 44.30 Argentinean Pesos; (b) 3.85 Brazilian Reais; (c) 670
Chilean Pesos; (d) 3,130 Colombian Pesos; (e) 0.89 Euros; (f) 5.35
Ghanaian Cedi; (g) 70.20 Indian Rupees; (h) 102 Kenyan Shillings; (i)
19.40 Mexican Pesos; (j) 360 Nigerian Naira; (k) 6,190 Paraguayan
Guarani; (l) 3.30 Peruvian Soles; (m) 14.40 South African Rand; and
(n) 3,750 Ugandan Shillings.

The Company's outlook reflects estimated unfavorable impacts of foreign
currency exchange rate fluctuations to property revenue, Adjusted EBITDA
and Consolidated AFFO, of approximately $13 million, $14 million and $12
million, respectively, as compared to the Company's prior 2019 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.

The Company's full year 2019 outlook also reflects estimated cumulative
expected unfavorable impacts of ICCC on property revenue, Adjusted
EBITDA and Consolidated AFFO of approximately $380 million, $268 million
and $214 million, respectively, inclusive of an expected reduction in
pass-through revenue of approximately $83 million. These impacts are
unchanged from the Company's prior outlook and include consolidation
churn experienced through the end of the first quarter of 2019, as well
as the incremental expected impacts of ICCC throughout the remainder of
2019. The expected 2019-specific impacts of ICCC to property revenue,
Adjusted EBITDA and Consolidated AFFO are $191 million, $148 million and
$118 million, respectively, including $22 million in lower pass-through
revenue. At this time, the Company expects the impacts of ICCC to last
throughout 2019 and anticipates that churn rates in India will return to
lower levels in 2020 and beyond. The Company is providing key outlook
measures adjusted to quantify the impacts of ICCC on such measures and
the impact of ICCC and the Company's settlement with Tata Teleservices
and related entities (Tata) in the fourth quarter of 2018 on growth
rates 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 operations. The
impacts of ICCC and the Tata settlement on net income are 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 ICCC on the
Company's outlook has been provided in the supplemental disclosure
package available on the Company's website.

         
2019 Outlook ($ in millions) Full Year 2019 Midpoint

Growth

Total property revenue(1) $ 7,135     to     $ 7,285 (1.4)%
Net income 1,560 to 1,660 27.3%
Adjusted EBITDA 4,420 to 4,520 (4.2)%
Consolidated AFFO 3,375 to 3,475 (3.2)%
 
_______________
(1)   Includes U.S. property revenue of $3,925 million to $4,015 million
and international property revenue of $3,210 million to $3,270
million, reflecting midpoint growth rates of 3.9% and (7.2)%,
respectively. The U.S. growth rate includes a negative impact of
nearly 3% associated with a decrease in non-cash straight-line
revenue recognition. The international growth rate includes
estimated negative impacts of approximately 15% attributable to ICCC
and the non-recurrence of the Tata settlement, and approximately 3%
from the translational effects of foreign currency exchange rate
fluctuations. International property revenue reflects the Company's
Latin America, EMEA and Asia segments.
 
             

2019 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 $ 980 $ 980
Straight-line revenue (28) 37 9
   
_______________
(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.
 
             

2019 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)% ~3-4%
New Site Tenant Billings <0.5% ~5-6% >2%
Total Tenant Billings Growth >7% ~3-4% ~5-6%
 
_______________
(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 2019 Outlook:

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

      FY 2018 Results     2019 Outlook, at the Midpoint    

Midpoint Growth Rates
vs. Prior Year

($ in millions) As Reported    

Impact of
Tata
Settlement(1)

   

Impact of
ICCC(2)

    Normalized As Reported    

Impact of
ICCC(2)

    Normalized As Reported    

Impact of
ICCC and
Tata
Settlement(3)

    Normalized
Total property revenue(4) $ 7,315 $ (334 ) $ 189 $ 7,170 $ 7,210 $ 380 $ 7,590 (1.4)% 7.3% 5.9%
Adjusted EBITDA 4,667 (327 ) 120 $ 4,459 $ 4,470 $ 268 4,738 (4.2)% 10.5% 6.2%
Consolidated AFFO 3,539 (313 ) 96 3,322 $ 3,425 $ 214 3,639

(3.2)%

12.8% 9.6%
Consolidated AFFO per Share(5) $ 7.99 $ (0.71 ) $ 0.22 $ 7.50 $ 7.70 $ 0.48 $ 8.18

(3.6)%

12.7% 9.1%
Consolidated Organic Tenant Billings 275 128 403 $ 204 $ 211 416 ~3-4% ~3.5% ~7%
International Organic Tenant Billings 32 128 160 $ (46 ) $ 211 166 (~2)% ~9-10% ~7-8%
 
_______________
(1)   Includes the one-time net positive impacts to 2018 property revenue,
Adjusted EBITDA and Consolidated AFFO related to the Company's
settlement with Tata. Churn associated with the settlement is
reflected in the ICCC column.
(2) Reflects the cumulative impacts of ICCC since 2017.
(3) Reflects the cumulative impacts of ICCC since 2017 and the 2018
impacts of the Tata settlement.
(4) Expected ICCC impacts include a cumulative decline of approximately
$61 million and $83 million in pass-through revenue for 2018 and
2019, respectively.
(5) Assumes 2019 weighted average diluted share count of 445 million
shares.
 
             

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

Full Year 2019
Discretionary capital projects(1) $ 315 to $ 355
Ground lease purchases 150 to 160
Start-up capital projects 70 to 90
Redevelopment 255 to 265
Capital improvement 150 to 170
Corporate 10   10
Total $ 950   to $ 1,050
 
_______________
(1)   Includes the construction of 2,750 to 3,750 communications sites
globally.
 
             

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

Full Year 2019
Net income $ 1,560 to $ 1,660
Interest expense 840 to 810
Depreciation, amortization and accretion 1,765 to 1,805
Income tax provision 125 to 135
Stock-based compensation expense 100 to 110

Other, including other operating expenses, interest income, gain
(loss) on retirement of long-term

obligations and other income (expense)

30   to
Adjusted EBITDA $ 4,420   to $ 4,520
 
             

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

Full Year 2019
Net income $ 1,560 to $ 1,660
Straight-line revenue (9 ) (9 )
Straight-line expense 35 35
Depreciation, amortization and accretion 1,765 to 1,805
Stock-based compensation expense 100 to 110
Deferred portion of income tax 5 to 11

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
distributions to minority interests

79 to 43
Capital improvement capital expenditures (150 ) to (170 )
Corporate capital expenditures (10 ) (10 )
Consolidated AFFO $ 3,375   to $ 3,475  
 

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 March 31, 2019 and
its updated outlook for 2019. 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) 260-0718
International dial-in: (651)
291-1246
Passcode: 465582

When available, a replay of the call can be accessed until 11:59 p.m. ET
on May 17, 2019. The replay dial-in numbers are as follows:

U.S./Canada dial-in: (800) 475-6701
International dial-in: (320)
365-3844
Passcode: 465582

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 over 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 (ICCC). 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 rate 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 rate 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 (ICCC): 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, in periods through the third quarter of
2018, 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.

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 finance leases and
perpetual land easements. 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 and
finance lease liabilities, 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 2019 outlook and other targets, our expectations regarding
Indian Carrier Consolidation-Driven Churn (ICCC) and factors that could
affect such expectations, foreign currency exchange rates, our
expectations for the redemption of shares in ATC TIPL 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 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) new technologies or changes in our or
a tenant's business model could make our tower leasing business less
desirable and result in decreasing revenues and operating results; (9)
competition for assets could adversely affect our ability to achieve our
return on investment criteria; (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, fiber networks, data centers or computer
systems may be affected by natural disasters, security breaches 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, 2018, 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)

 
March 31, 2019 December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,004.8 $ 1,208.7
Restricted cash 94.9 96.2
Short-term investments 18.4
Accounts receivable, net 473.0 459.0
Prepaid and other current assets 471.2   621.2  
Total current assets 2,062.3   2,385.1  
PROPERTY AND EQUIPMENT, net 11,202.6 11,247.1
GOODWILL 5,538.2 5,501.9
OTHER INTANGIBLE ASSETS, net 11,042.8 11,174.3
DEFERRED TAX ASSET 132.3 157.7
DEFERRED RENT ASSET 1,588.6 1,581.7
RIGHT-OF-USE ASSET(1) 7,080.9
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS 279.1   962.6  
TOTAL $ 38,926.8   $ 33,010.4  
LIABILITIES
CURRENT LIABILITIES:
Accounts payable $ 130.0 $ 130.8
Accrued expenses 863.7 948.3
Distributions payable 403.1 377.4
Accrued interest 126.5 174.5
Current portion of operating lease liability(1) 498.4
Current portion of long-term obligations 2,097.2 2,754.8
Unearned revenue 293.0   304.1  
Total current liabilities 4,411.9   4,689.9  
LONG-TERM OBLIGATIONS 19,107.1 18,405.1
OPERATING LEASE LIABILITY(1) 6,316.1
ASSET RETIREMENT OBLIGATIONS 1,227.2 1,210.0
DEFERRED TAX LIABILITY 510.8 535.9
OTHER NON-CURRENT LIABILITIES 864.4   1,265.1  
Total liabilities 32,437.5   26,106.0  
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS 589.0 1,004.8
EQUITY:
Common stock 4.5 4.5
Additional paid-in capital 10,447.9 10,380.8
Distributions in excess of earnings (1,226.4 ) (1,199.5 )
Accumulated other comprehensive loss (2,672.2 ) (2,642.9 )
Treasury stock (1,206.8 ) (1,206.8 )
Total American Tower Corporation equity 5,347.0 5,336.1
Noncontrolling interests 553.3   563.5  
Total equity 5,900.3   5,899.6  
TOTAL $ 38,926.8   $ 33,010.4  
 
_______________
(1)   Reflects the adoption of the new lease accounting standard requiring
a right-of-use model.
 

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

     
Three Months Ended March 31,
2019     2018
REVENUES:
Property $ 1,786.0 $ 1,710.4
Services 27.4   31.4  
Total operating revenues 1,813.4   1,741.8  
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property(1) 533.0 507.4
Services(1) 10.4 12.5
Depreciation, amortization and accretion 436.9 446.3
Selling, general, administrative and development expense(1)(2) 198.1 204.9
Other operating expenses(3) 20.1   167.8  
Total operating expenses 1,198.5   1,338.9  
OPERATING INCOME 614.9   402.9  
OTHER INCOME (EXPENSE):
Interest income, TV Azteca (net of interest expense of $0.0 and
$0.3, respectively)
2.7
Interest income 12.4 15.4
Interest expense (207.5 ) (199.6 )
Loss on retirement of long-term obligations (0.1 )
Other income (including foreign currency gains of $20.1 and $23.3,
respectively)
21.9   27.8  
Total other expense (173.3 ) (153.7 )
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 441.6 249.2
Income tax (provision) benefit(4) (34.0 ) 31.1  
NET INCOME 407.6 280.3
Net (income) loss attributable to noncontrolling interests (10.2 ) 4.9  
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS 397.4 285.2
Dividends on preferred stock   (9.4 )
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON
STOCKHOLDERS
$ 397.4   $ 275.8  
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common
stockholders
$ 0.90   $ 0.63  
Diluted net income attributable to American Tower Corporation common
stockholders
$ 0.89   $ 0.63  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC 441,351   435,124  
DILUTED 444,621   438,520  
 
_______________
(1)   Property costs of operations, services costs of operations and
selling, general, administrative and development expense include
stock-based compensation expense in aggregate amounts of $42.5
million and $42.7 million in Q1 2019 and Q1 2018, respectively.
(2) Q1 2018 includes approximately $29 million of bad debt expense,
primarily associated with Aircel's bankruptcy in India.
(3) Q1 2018 reflects an impairment charge of approximately $147 million,
primarily related to assets in India, partially offset by an income
tax benefit in India. The portion of these items attributable to AMT
common stockholders was approximately $59 million.
(4) Q1 2018 income tax benefit primarily attributable to an income tax
benefit in India recognized during the period.
 
     

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

 
Three Months Ended March 31,
2019     2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 407.6 $ 280.3
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation, amortization and accretion 436.9 446.3
Amortization of operating leases(1) 152.6
Stock-based compensation expense 42.5 42.7
Loss on early retirement of long-term obligations 0.1
Other non-cash items reflected in statements of operations 28.9 96.8
Increase in net deferred rent balances (5.3 ) (3.9 )
Reduction in operating lease liability(1) (132.4 )
Increase in assets (33.0 ) (95.4 )
(Decrease) increase in liabilities (112.8 ) 25.0  
Cash provided by operating activities 785.1   791.8  
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for purchase of property and equipment and construction
activities
(220.8 ) (198.5 )
Payments for acquisitions, net of cash acquired (91.1 ) (673.4 )
Proceeds from sales of short-term investments and other non-current
assets
254.9 84.0
Payments for short-term investments (261.5 ) (478.1 )
Deposits and other (4.8 ) (14.6 )
Cash used for investing activities (323.3 ) (1,280.6 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit facilities 1,700.0 1,748.3
Proceeds from issuance of senior notes, net 1,241.6
Proceeds from term loan 1,300.0 1,500.0
Proceeds from issuance of securities in securitization transaction 500.0

Repayments of notes payable, credit facilities, senior notes,
secured debt, term loan,

finance leases and capital leases(2)

(4,025.9 ) (2,584.9 )
Distributions to noncontrolling interest holders, net (13.8 ) (0.3 )
Proceeds from stock options 27.2 20.0
Deferred financing costs and other financing activities(3) (76.7 ) (42.6 )
Purchase of redeemable noncontrolling interest (425.7 )
Distributions paid on preferred stock (18.9 )
Distributions paid on common stock (377.1 ) (304.3 )
Cash (used for) provided by financing activities (650.4 ) 817.3  

Net effect of changes in foreign currency exchange rates on cash
and cash equivalents, and

restricted cash

(16.6 ) (4.5 )

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS, AND

RESTRICTED CASH

(205.2 ) 324.0
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 1,304.9   954.9  
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 1,099.7   $ 1,278.9  
CASH PAID FOR INCOME TAXES, NET $ 36.9   $ 24.7  
CASH PAID FOR INTEREST $ 249.0   $ 228.6  
 
_______________
(1)   Reflects the adoption of the new lease accounting standard requiring
a right-of-use model.
(2) Q1 2019 includes $1.3 million of finance lease payments. Q1 2018
includes $9.3 million of payments on capital leases of property and
equipment.
(3) Q1 2019 includes $11.5 million of perpetual land easement payments.
 
     

UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT

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

 
Three Months Ended March 31, 2019
Property     Services     Total
U.S.    

Latin
America

    Asia(1)     EMEA    

Total
International

   

Total
Property

Segment revenues $ 986 $ 333 $ 289 $ 178 $ 800 $ 1,786 $ 27 $ 1,813
Segment operating expenses(2) 191   103   178   60   341   532   10   543  
Segment Gross Margin $ 795   $ 230   $ 111  

$

118   $ 459   $ 1,254   $ 17   $ 1,271  
Segment SG&A(2) 42   28   27   18   73   114   3   118  
Segment Operating Profit $ 753   $ 202   $ 84   $ 99   $ 386   $ 1,139   $ 14   $ 1,153  
Segment Operating Profit Margin 76 % 61 % 29 % 56 % 48 % 64 % 51 % 64 %
 
Revenue Growth 5.9 % 0.5 % 5.8 % 1.9 % 2.7 % 4.4 % (12.7 )% 4.1 %
Total Tenant Billings Growth 8.4 % 9.5 % (0.8 )% 11.8 % 6.7 % 7.8 %
Organic Tenant Billings Growth 8.2 % 7.7 % (28.5 )% 6.5 % (4.3 )% 3.5 %
 
 
Revenue Components(3)
Prior-Year Tenant Billings $ 881 $ 225 $ 170 $ 130 $ 525 $ 1,406
Colocations/Amendments 57 11 17 5 32 89
Escalations 28 11 3 6 21 49
Cancellations (12 ) (6 ) (69 ) (3 ) (79 ) (91 )
Other (1 ) 2   1   1   4   3  
Organic Tenant Billings $ 953   $ 242   $ 121   $ 139   $ 502   $ 1,455  
New Site Tenant Billings 2   4   47   7   58   60  
Total Tenant Billings $ 955   $ 246   $ 168   $ 146   $ 560   $ 1,515  
Foreign Currency Exchange Impact(4)   (23 ) (15 ) (11 ) (49 ) (49 )
Total Tenant Billings (Current Period) $ 955   $ 223   $ 153   $ 135   $ 511   $ 1,466  
 
Straight-Line Revenue (6 ) 6 4 2 11 6
Prepaid Amortization Revenue 28 1 1 2 30
Other Revenue 9 27 6 4 38 46
International Pass-Through Revenue 86 139 39 264 264
Foreign Currency Exchange Impact(5)   (10 ) (13 ) (3 ) (26 ) (26 )
Total Property Revenue (Current Period) $ 986   $ 333   $ 289   $ 178   $ 800   $ 1,786  
 
_______________
(1)   Inclusive of the negative impacts of ICCC. 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 foreign currency exchange impact on all components of Total
Tenant Billings.
(5) 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 March 31, 2018
Property     Services     Total
U.S.    

Latin
America

    Asia(1)     EMEA    

Total
International

   

Total
Property

Segment revenues $ 931 $ 332 $ 273 $ 174 $ 779 $ 1,710 $ 31 $ 1,742
Segment operating expenses(2) 186 103 158 59 320 507 12 519
Interest income, TV Azteca, net   3       3   3     3  
Segment Gross Margin $ 745   $ 231   $ 115   $ 115   $ 461   $ 1,206   $ 19   $ 1,226  
Segment SG&A(2) 35   25   44   17   86   121   4   124  
Segment Operating Profit $ 710   $ 206   $ 71   $ 98   $ 376   $ 1,085   $ 16   $ 1,101  
Segment Operating Profit Margin 76 % 62 % 26 % 56 % 48 % 63 % 50 % 63 %
 
Revenue Growth 4.4 % 20.1 % (0.9 )% 15.8 % 10.9 % 7.3 % 42.1 % 7.8 %
Total Tenant Billings Growth 7.2 % 15.1 % (3.7 )% 12.5 % 7.8 % 7.4 %
Organic Tenant Billings Growth 6.3 % 11.7 % (4.7 )% 7.4 % 4.9 % 5.8 %
 
 
Revenue Components(3)
Prior-Year Tenant Billings $ 822 $ 192 $ 169 $ 112 $ 473 $ 1,295
Colocations/Amendments 38 12 12 4 27 65
Escalations 25 11 3 6 20 45
Cancellations (10 ) (2 ) (23 ) (1 ) (26 ) (36 )
Other (1 ) 2   0   0   2   1  
Organic Tenant Billings $ 873   $ 215   $ 161   $ 120   $ 496   $ 1,370  
New Site Tenant Billings 7   6   2   6   14   21  
Total Tenant Billings $ 881   $ 221   $ 162   $ 126   $ 510   $ 1,391  
Foreign Currency Exchange Impact(4)   3   7   4   15   15  
Total Tenant Billings (Current Period) $ 881   $ 225   $ 170   $ 130   $ 525   $ 1,406  
 
Straight-Line Revenue 15 1 2 1 3 18
Prepaid Amortization Revenue 22 0 0 1 23
Other Revenue 14 25 (8 ) 5 21 35
International Pass-Through Revenue 80 105 38 224 224
Foreign Currency Exchange Impact(5)   1   5   (0 ) 5   5  
Total Property Revenue (Current Period) $ 931   $ 332   $ 273   $ 174   $ 779   $ 1,710  
 
_______________
(1)   Inclusive of the negative impacts of ICCC. 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 foreign currency exchange impact on all components of Total
Tenant Billings.
(5) 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 March 31,
2019(1)     2018(1)
Net income $ 407.6 $ 280.3
Income tax provision (benefit) 34.0 (31.1 )
Other income (21.9 ) (27.8 )
Loss on retirement of long-term obligations 0.1
Interest expense 207.5 199.6
Interest income (12.4 ) (15.4 )
Other operating expenses 20.1 167.8
Depreciation, amortization and accretion 436.9 446.3
Stock-based compensation expense 42.5   42.7  
Adjusted EBITDA $ 1,114.4   $ 1,062.4  
Total revenue 1,813.4   1,741.8  
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 as follows:

     
Three Months Ended March 31,
2019(1)     2018(1)
Net income $ 407.6 $ 280.3
Real estate related depreciation, amortization and accretion 388.5 397.3
Losses from sale or disposal of real estate and real estate related
impairment charges(2)
19.1 166.3
Dividends on preferred stock (9.4 )
Adjustments for unconsolidated affiliates and noncontrolling
interests
(45.6 ) (86.9 )
Nareit FFO attributable to AMT common stockholders $ 769.6   $ 747.6  
Straight-line revenue (5.3 ) (17.8 )
Straight-line expense 9.2 14.0
Stock-based compensation expense 42.5 42.7
Deferred portion of income tax(3) (2.9 ) (55.8 )
Non-real estate related depreciation, amortization and accretion 48.4 49.0

Amortization of deferred financing costs, capitalized interest and
debt

discounts and premiums and long-term deferred interest charges

6.4 2.9
Other income(4) (21.9 ) (27.8 )
Loss on retirement of long-term obligations 0.1
Other operating expense(5) 1.0 1.5
Capital improvement capital expenditures (28.2 ) (33.7 )
Corporate capital expenditures (3.4 ) (2.4 )
Adjustments for unconsolidated affiliates and noncontrolling
interests
45.6   86.9  
Consolidated AFFO 861.1   807.1  
Adjustments for unconsolidated affiliates and noncontrolling
interests(6)
(43.3 ) (47.8 )
AFFO attributable to AMT common stockholders $ 817.8  

$

759.3  
Divided by weighted average diluted shares outstanding 444,621   438,520  
Consolidated AFFO per Share $ 1.94   $ 1.84  
AFFO attributable to AMT common stockholders per Share $ 1.84   $ 1.73  
 
_______________
(1)   Reflects the negative impacts of ICCC.
(2) Q1 2019 and Q1 2018 include impairment charges of $18.1 million and
$147.4 million, respectively.
(3) Q1 2018 amount includes a tax benefit primarily attributable to the
tax effect of an increase in impairment charges and a one-time
benefit for merger-related activity in the Company's Asia property
segment.
(4) Q1 2019 and Q1 2018 includes gains on foreign currency exchange rate
fluctuations of $20.1 million and $23.3 million, respectively.
(5) Primarily includes integration and acquisition-related costs.
(6) 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.
 

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