Tuesday, May 4, 2010

American Tower Sees 11% Rise in Quarterly Revenues

Tower network operator, American Tower has seen its first-quarter revenues rise by 11.2% to US$454.4 million as the company boosted its tower assets by 4,000 over the previous year. Rental and management segment revenue growth was positively impacted by approximately 2.2% due to foreign currency exchange rate fluctuations and approximately 0.7% due to straight-line revenue recognition. Excluding the impact of these items, Core Growth in rental and management segment revenue was 9.2%. Rental and management segment Gross Margin increased 12.1% to $346.9 million. Network development services revenue and Gross Margin were $10.6 million and $4.6 million, respectively.

Net income increased to $96.3 million, which reflects an effective tax rate decrease of 17.2% which was substantially driven by the implementation of tax planning initiatives in Latin America.

Jim Taiclet, American Tower's Chief Executive Officer stated, "During the first quarter of 2010 we remained focused on both maximizing the utilization of our legacy portfolio and making investments in further expanding our portfolio of assets. Our operational performance during the quarter provided us the ability to reinvest $55 million in capital expenditures and $89 million in acquisitions, while also returning $52 million to shareholders through our stock repurchase program. Since the beginning of the first quarter of 2009, we have added approximately 4,000 new sites to our portfolio and made select investments in people and systems to support our growing asset base. We accomplished all of this while maintaining our industry leading Adjusted EBITDA margin of 69% and positioning the Company for continued strong performance."

Based on its first quarter 2010 performance, the Company is reaffirming its Full Year 2010 outlook.

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