American Tower Corp.
) second-quarter 2013 net income of $99.8 million or 25 cents per
share more than doubled from $48.2 million or 12 cents per share
in the prior-year quarter. However, it missed the Zacks Consensus
Estimate of 53 cents. Total revenue of $808.8 million increased
15.9% year over year, but were below the Zacks Consensus Estimate
of $817 million.
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Adjusted EBITDA in the reported quarter was $524 million,
representing an annualized growth of 12.5%. Adjusted EBITDA
margin was 65% compared with 67% in the prior-year quarter. Gross
margin was 75.1% compared with 75.9% in the year-ago quarter.
Selling, general & administrative expenses were $99.8 million
compared with $76.8 million in the year-ago quarter. Operating
income was $312.8 million, up 15.6% year over year. In the
reported quarter, American Tower repurchased 0.8 million shares
of its Class A common stock for a total consideration of $62.1
In the second quarter of 2013, American Tower generated $390.5
million in cash from operations, up 8.2% year over year. Adjusted
funds from operations (AFFO) in the reported quarter were $366.2
million, up 19.5% from the year-ago quarter. AFFO per share was
92 cents compared with 77 cents in the prior-year quarter.
At the end of second quarter 2013, American Tower had $462.7
million in cash and marketable securities and around $8,798.6
million in outstanding debt on its balance sheet compared with
$374.6 million and $8,693.3 million at the end of 2012,
respectively. At the end of second quarter 2013,
debt-to-capitalization ratio was 0.71 as compared with 0.70 at
the end of 2012.
Domestic Rental and Management Segment
Quarterly revenues were $521 million, up 10.1% year over year.
Gross margin came in at 81.7% compared with 81.4% in the year-ago
quarter. Operating margin was 77%, flat with the year-ago
International Rental and Management Segment
Quarterly revenues stood at $268.2 million, signifying a 28.4%
year-over-year increase. Gross margin for the segment was 63%
compared with 65% in the year-ago quarter. Operating margin was
51% compared with 56% in the year-ago quarter.
Network Development Services Segment
Quarterly revenues were $19.6 million, up by 26.5% year over
year. Gross margin was 62.8% compared with 54.2% in the year-ago
quarter. Operating margin was 51% compared with 42% in the
At the end of the second quarter of 2013, American Tower managed
56,193 communications towers, of which 55,720 were for Wireless
network and 473 for Broadcasting. Geographically, the company
operates 22,720 wireless towers and 274 broadcast towers in the
U.S. along with 33,473 wireless towers and 199 broadcast towers
outside the U.S.
For 2013, total revenue from the Rental & Management segment
is likely to be $3,160 million to $3,210 million. Adjusted EBITDA
is anticipated in the band of $2,085 to $2,135 million. AFFO is
estimated at around $1,430 -$1,480 million. Net income is
estimated around $655 -$695 million. Capital expenditure is
expected in the band of $525 -$625 million.
Other Stocks to Consider
American Tower currently has a Zacks Rank #3 (Hold). Other stocks
in the wireless tower industry include
Crown Castle International Corp.
SBA Communication Corp.