UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): July 30, 2014

 

 

AMERICAN TOWER CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-14195   65-0723837

(State or Other Jurisdiction

of Incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

116 Huntington Avenue

Boston, Massachusetts 02116

(Address of Principal Executive Offices) (Zip Code)

(617) 375-7500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02 Results of Operations and Financial Condition.

On July 30, 2014, American Tower Corporation (the “Company”) issued a press release (the “Press Release”) announcing financial results for the second quarter ended June 30, 2014. A copy of the Press Release is furnished herewith as Exhibit 99.1.

Exhibit 99.1 is furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such exhibit be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.

   

Description

99.1    Press Release, dated July 30, 2014 (Furnished herewith)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  AMERICAN TOWER CORPORATION
                          (Registrant)
Date:   July 30, 2014   By:  

                      /s/ THOMAS A. BARTLETT

                          Thomas A. Bartlett
  Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

 

Exhibit No.

   

Description

99.1    Press Release, dated July 30, 2014 (Furnished herewith)
EX-99.1

Exhibit 99.1

 

LOGO

Contact: Leah Stearns

Vice President, Investor Relations & Treasurer

Telephone: (617) 375-7500

AMERICAN TOWER CORPORATION REPORTS

SECOND QUARTER 2014 FINANCIAL RESULTS

 

SECOND QUARTER 2014 HIGHLIGHTS      
Consolidated Results   

Segment Results

 

•    Total revenue increased 27.5% to $1,031 million

   

•    

 

   

Domestic rental and management segment revenue increased 26.6% to $660 million

 

•    Adjusted EBITDA increased 30.2% to $682 million

   

•    

 

   

International rental and management segment revenue increased 29.0% to $346 million

 

•    AFFO increased 29.4% to $474 million

   

•    

    Network development services segment revenue was $26 million

Boston, Massachusetts – July 30, 2014: American Tower Corporation (NYSE: AMT) today reported financial results for the quarter ended June 30, 2014.

Jim Taiclet, American Tower’s Chief Executive Officer stated, “Our second quarter 2014 results exceeded our expectations across all key metrics due to strong global demand for our tower space. 4G coverage and densification initiatives by our major tenants drove Organic Core Growth of over 11% in the U.S., and significant investment levels by tenants internationally drove Organic Core Growth of nearly 18%. These strong Organic Core Growth trends, in combination with contributions from new assets, led to record AFFO per share growth in the quarter of over 29%.

We expect favorable leasing demand for communications real estate to continue and accordingly, we are raising our full year outlook for total rental and management revenue, Adjusted EBITDA and AFFO by $45 million, $55 million and $30 million, respectively.”

SECOND QUARTER 2014 OPERATING RESULTS OVERVIEW

American Tower generated the following operating results for the quarter ended June 30, 2014 (unless otherwise indicated, all comparative information is presented against the quarter ended June 30, 2013).

 

  •   Total revenue increased 27.5% to $1,031 million and total rental and management revenue increased 27.4% to $1,006 million.

 

  •   Total rental and management revenue Core Growth was approximately 32.9%, and total rental and management Organic Core Growth was approximately 13.6%.

 

  •   Total rental and management Gross Margin increased 25.3% to $746 million, and total rental and management Gross Margin percentage was 74%.

 

  •   Adjusted EBITDA increased 30.2% to $682 million, Core Growth in Adjusted EBITDA was 33.7%, and Adjusted EBITDA Margin was 66%.

 

  •   Adjusted Funds From Operations (AFFO) increased 29.4% to $474 million, AFFO per Share increased 29.3% to $1.19, and Core Growth in AFFO was approximately 31.4%.

 

  •   Net income attributable to American Tower Corporation common stockholders increased 130.5% to $230 million, and net income attributable to American Tower Corporation common stockholders per both basic and diluted common share increased 132.0% to $0.58.

 

  •   Cash provided by operating activities increased 36.7% to $1,072 million for the first half of 2014.

Second quarter 2014 results were favorably impacted by the recovery of corporate expenses of approximately $7 million and a one-time cash tax refund of approximately $5 million. The Company’s Core Growth metrics exclude the impact of both of these items.

 

1

Segment Results

Domestic Rental and Management Segment

 

  •   Revenue increased 26.6% to $660 million;

 

  •   Organic Core Growth in revenue was 11.4%;

 

  •   Gross Margin increased 25.3% to $533 million;

 

  •   Gross Margin percentage was 81%;

 

  •   Operating Profit increased 25.8% to $505 million, which represented 72% of total Operating Profit; and

 

  •   Operating Profit Margin was 77%.

Domestic rental and management segment results include the positive impact of accelerated revenue recognition under a multi-year equipment agreement with a major tenant. This revenue was included in the Company’s prior outlook for 2014 but was previously expected to be recorded evenly throughout the year.

International Rental and Management Segment

 

  •   Revenue increased 29.0% to $346 million;

 

  •   Organic Core Growth in revenue was 17.9%;

 

  •   Gross Margin increased 25.6% to $212 million;

 

  •   Gross Margin percentage was 61% (84% excluding the impact of $93 million of pass-through revenues);

 

  •   Operating Profit increased 30.2% to $178 million, which represented 25% of total Operating Profit; and

 

  •   Operating Profit Margin was 51% (70%, excluding the impact of $93 million of pass-through revenues).

Network Development Services Segment

 

  •   Revenue was $26 million;

 

  •   Gross Margin was $17 million;

 

  •   Gross Margin percentage was 65%;

 

  •   Operating Profit was $14 million, which represented 2% of total Operating Profit; and

 

  •   Operating Profit Margin was 56%.

Please refer to “Non-GAAP and Defined Financial Measures” on pages 5 and 6 for definitions of Gross Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New Property Core Growth and Net Leverage Ratio. For additional financial information, including reconciliations to GAAP measures, please refer to the unaudited selected financial information on pages 11 through 15.

INVESTING OVERVIEW

Distributions – On July 16, 2014, the Company paid its second quarter distribution of $0.34 per share, or a total of approximately $135 million, to common stockholders of record at the close of business on June 17, 2014. On May 21, 2014, the Company declared a dividend of $1.3563 per share, or approximately $8.1 million, payable to preferred stockholders of record at the close of business on August 1, 2014.

Cash Paid for Capital Expenditures – During the second quarter of 2014, total capital expenditures of $252 million included:

 

  •   $155 million for discretionary capital projects, including spending to complete the construction of 276 towers and the installation of 7 distributed antenna system networks and 336 shared generators domestically and the construction of 366 towers and the installation of 7 distributed antenna system networks internationally;

 

  •   $23 million to purchase land under the Company’s communications sites;

 

  •   $5 million for start-up capital projects in recently launched markets;

 

  •   $48 million for the redevelopment of existing communications sites to accommodate new tenant equipment; and

 

  •   $21 million for capital improvements and corporate capital expenditures.

Cash Paid for Acquisitions – During the second quarter of 2014, the Company spent $253 million for acquisitions, including the purchase of 85 towers in the U.S. and 423 internationally. The international acquisitions included 103 sites in Brazil from NII Holdings, Inc. and 320 sites acquired from other parties. The Company also assumed approximately $197 million in existing indebtedness as part of these transactions, which it repaid in June 2014.

The Company has entered into agreements to purchase an aggregate of 154 towers in the United States, and approximately 2,530 towers and exclusive use rights for approximately 2,110 additional towers in Brazil. The combined purchase price for these assets is expected to be approximately $1.1 billion, and is subject to customary adjustments.

FINANCING OVERVIEW

Leverage – For the quarter ended June 30, 2014, the Company’s Net Leverage Ratio was approximately 5.0x net debt (total debt less cash and cash equivalents) to second quarter 2014 annualized Adjusted EBITDA.

Liquidity – As of June 30, 2014, the Company had approximately $3.5 billion of total liquidity, comprised of the ability to borrow up to an aggregate of approximately $3.2 billion under its three revolving credit facilities, net of any outstanding letters of credit, and approximately $0.3 billion in cash and cash equivalents.

 

2

FULL YEAR 2014 OUTLOOK

The following estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of July 30, 2014. 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.

As reflected in the table below, the Company has raised the midpoint of its full year 2014 outlook for total rental and management revenue by $45 million, Adjusted EBITDA by $55 million and AFFO by $30 million. These estimates include only the impact of closed acquisitions.

The Company’s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for the remainder of 2014: (a) 2.30 Brazilian Reais; (b) 555.00 Chilean Pesos; (c) 1,900.00 Colombian Pesos; (d) 0.75 Euros; (e) 3.65 Ghanaian Cedi; (f) 60.00 Indian Rupees; (g) 13.00 Mexican Pesos; (h) 2.80 Peruvian Soles; (i) 10.70 South African Rand; and (j) 2,600.00 Ugandan Shillings.

 

($ in millions)    Full Year 2014      Midpoint
Growth		     Midpoint Core
Growth		  

Total rental and management revenue

    $ 3,945         to       $ 4,015         21.1 %      26.0 % 

Adjusted EBITDA(1)

      2,615         to         2,655         21.1 %      25.7 % 

AFFO(1)

      1,755         to         1,795         20.8 %      23.3 % 

Net Income

      830         to         850         74.2 %      N/A   

 

(1) See “Non-GAAP and Defined Financial Measures” below.

The Company’s outlook for total rental and management revenue reflects the following at the midpoint:

 

  •   Domestic rental and management segment revenue of $2,625 million and Organic Core Growth of over 9%; and

 

  •   International rental and management segment revenue of $1,355 million and Organic Core Growth of nearly 15%. International rental and management segment revenue includes approximately $354 million of pass-through revenue.

The calculation of midpoint Core Growth is as follows:

(Totals may not add due to rounding)

 

     Total Rental and
Management
Revenue		     Adjusted
EBITDA		     AFFO  

Outlook midpoint Core Growth

      26.0 %      25.7 %      23.3 % 

Estimated impact of fluctuations in foreign currency exchange rates

      (3.2 )%      (2.3 )%      (2.8 )% 

Impact of straight-line revenue and expense recognition

      (1.7 )%      (2.6 )%      —     

Impact of significant one-time items

      —   %      0.3 %      0.3 % 
  

 

 

    

 

 

    

 

 

  

Outlook midpoint growth

      21.1 %      21.1 %      20.8 % 
  

 

 

    

 

 

    

 

 

  

Total Rental and Management Revenue Core Growth Components(1):

(Totals may not add due to rounding)

 

     Full Year 2014

Organic Core Growth

    ~10.6%

New Property Core Growth(2)

    ~15.4%
  

 

Core Growth

    ~26.0%

 

(1) Reflects growth at the midpoint of outlook ranges.
(2) Revenue growth attributable to sites added to the portfolio on or after January 1, 2013.

 

3

Outlook for Capital Expenditures:

($ in millions)

(Totals may not add due to rounding)

 

     Full Year 2014  

Discretionary capital projects(1)

    $ 480         to       $ 540   

Ground lease purchases

      115         to         125   

Start-up capital projects

      35         to         45   

Redevelopment

      180         to         190   

Capital improvement

      95         to         105   

Corporate

      20         —           20   
  

 

 

        

 

 

  

Total

    $ 925         to       $ 1,025   
  

 

 

        

 

 

  

 

(1) Includes the construction of approximately 2,250 to 2,750 new communications sites.

Reconciliations of Outlook for Net Income to Adjusted EBITDA:

($ in millions)

(Totals may not add due to rounding)

 

     Full Year 2014  

Net income

    $ 830         to       $ 850   

Interest expense

      585         to         565   

Depreciation, amortization and accretion

      980         to         1,000   

Income tax provision

      68         to         79   

Stock-based compensation expense

      80         —         80   

Other, including other operating expenses, interest income, loss on retirement of long-term obligations, (income) loss on equity method investments and other expense (income)

      72         to         81   
  

 

 

        

 

 

  

Adjusted EBITDA

    $ 2,615         to       $ 2,655   
  

 

 

        

 

 

  

Reconciliations of Outlook for Net Income to AFFO:

($ in millions)

(Totals may not add due to rounding)

 

     Full Year 2014  

Net income

    $ 830        to       $ 850   

Straight-line revenue

      (127 )      —         (127 ) 

Straight-line expense

      38        —         38   

Depreciation, amortization and accretion

      980        to         1,000   

Stock-based compensation expense

      80        —         80   

Non-cash portion of tax provision

      3        —         3   

Other, including other operating expenses, interest expense, amortization of deferred financing costs, capitalized interest, debt discounts and premiums, loss on retirement of long-term obligations, other expense (income), non-cash interest related to joint venture shareholder loans and dividends declared on preferred stock

      66        to         76   

Capital improvement capital expenditures

      (95 )      to         (105 ) 

Corporate capital expenditures

      (20 )      —         (20 ) 
  

 

 

       

 

 

  

AFFO

    $ 1,755        to       $ 1,795   
  

 

 

       

 

 

  

 

4

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, 2014 and its outlook for 2014. 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: (866) 740-9153

International dial-in: (706) 645-9644

Passcode: 72309359

When available, a replay of the call can be accessed until 11:59 p.m. ET on August 13, 2014. The replay dial-in numbers are as follows:

U.S./Canada dial-in: (855) 859-2056

International dial-in: (404) 537-3406

Passcode: 72309359

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

About American Tower

American Tower is a leading independent owner, operator and developer of wireless and broadcast communications real estate with a global portfolio of approximately 69,000 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, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New Property Core Growth and Net Leverage Ratio. The Company uses Funds From Operations as defined by the National Association of Real Estate Investment Trusts (NAREIT), referred to herein as NAREIT Funds From Operations.

The Company defines Gross Margin as 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 defines Operating Profit as Gross Margin less selling, general, administrative and development expense, excluding stock-based compensation expense and corporate expenses. For reporting purposes, the international rental and management segment Operating Profit and Gross Margin also include interest income, TV Azteca, net. These measures of Gross Margin and Operating Profit are also before interest income, interest expense, loss on retirement of long-term obligations, other income (expense), net income (loss) attributable to non-controlling interest, income (loss) on equity method investments and income taxes. The Company defines Operating Profit Margin as the percentage that results from dividing Operating Profit by revenue. The Company defines Adjusted EBITDA as net income before income (loss) from discontinued operations, net, income (loss) from equity method investments, income tax provision (benefit), other income (expense), 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 defines Adjusted EBITDA Margin as the percentage that results from dividing Adjusted EBITDA by total revenue. NAREIT Funds From Operations is defined as 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 declared on preferred stock, and including adjustments for (i) unconsolidated affiliates and (ii) noncontrolling interest. The Company defines AFFO as NAREIT Funds From Operations before (i) straight-line revenue and expense, (ii) stock-based compensation expense, (iii) the non-cash portion of our tax provision, (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) loss on retirement of long-term obligations, (viii) other operating income (expense), and adjustments for (ix) unconsolidated affiliates, and (x) noncontrolling interest, less cash payments related to capital improvements and cash payments related to corporate capital expenditures. The Company defines AFFO per Share as AFFO divided by the diluted weighted average common shares outstanding. The Company defines Core Growth in total rental and management revenue, Adjusted EBITDA and AFFO as the increase or decrease, expressed as a percentage, resulting from a comparison of financial results for a current period with corresponding financial results for the corresponding period in a prior year, in each case, excluding the impact of straight-line revenue and expense recognition, foreign currency exchange rate fluctuations and significant one-time items. The Company defines Organic Core Growth in rental and management revenue as the increase or decrease, expressed as a percentage, resulting from a comparison of financial results for a current period with corresponding financial results for the corresponding period in a prior year, in each case, excluding the impact of straight-line revenue and expense recognition, foreign currency exchange rate fluctuations, significant one-time items and revenue associated with new properties that the Company has added to the portfolio since the beginning of the prior period. The Company defines New Property Core Growth in rental and management revenue as the increase or decrease, expressed as a percentage, on the properties the Company has added to its portfolio since the beginning of the prior period, in each case, excluding the impact of straight-line revenue and expense recognition, foreign currency exchange rate fluctuations and significant one-time items. The Company defines Net Leverage Ratio as net debt (total debt, less cash and cash equivalents) divided by last quarter annualized Adjusted EBITDA. 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. The Company believes that these measures can assist in comparing company performances on a consistent basis irrespective of depreciation and amortization or capital structure. Depreciation and amortization can vary significantly among companies depending on accounting methods, particularly where acquisitions or non-operating factors, including historical cost bases, are involved. Notwithstanding the foregoing, the Company’s measures of Gross Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations, AFFO, AFFO per Share, Core Growth, Organic Core Growth, New Property Core Growth and Net Leverage Ratio may not be comparable to similarly titled measures used by other companies.

 

5

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 2014 outlook, foreign currency exchange rates and our expectation 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) decrease in demand for our communications sites would materially and adversely affect our operating results, and we cannot control that demand; (2) if our tenants share site infrastructure to a significant degree or consolidate or merge, our growth, revenue and ability to generate positive cash flows could be materially and adversely affected; (3) our business is subject to government regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (4) our leverage and debt service obligations may materially and adversely affect us; (5) if we fail to pay scheduled dividends on our preferred stock, in cash or common stock, we will be prohibited from paying dividends on our common stock, which may jeopardize our status as a REIT; (6) increasing competition in the tower industry may materially and adversely affect us; (7) our expansion initiatives involve a number of risks and uncertainties that could adversely affect our operating results, disrupt our operations or expose us to additional risk if we are not able to successfully integrate operations, assets and personnel; (8) 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; (9) 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; (10) we may fail to realize the growth prospects and cost savings anticipated as a result of our acquisition of MIP Tower Holdings LLC, the parent company of Global Tower Partners (GTP); (11) new technologies or changes in a tenant’s business model could make our tower leasing business less desirable and result in decreasing revenues; (12) if we fail to remain qualified as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available; (13) we may be limited in our ability to fund required distributions using cash generated through our TRSs; (14) complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities; (15) certain of our business activities may be subject to corporate level income tax and foreign taxes, which reduce our cash flows and may create deferred and contingent tax liabilities; (16) we may need additional financing to fund capital expenditures, future growth and expansion initiatives and to satisfy our REIT distribution requirements; (17) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; (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 such towers will be eliminated; (19) 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; (20) we may incur goodwill and other intangible asset impairment charges, which could result in a significant reduction to our earnings; (21) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated; (22) we could have liability under environmental and occupational safety and health laws; and (23) our towers or data centers may be affected by natural disasters and other unforeseen events for which our insurance may not provide adequate coverage. 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-Q for the quarter ended March 31, 2014. We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

 

6

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

                                                                       
     June 30, 2014     December 31, 2013(1)  

ASSETS

     

CURRENT ASSETS:

     

Cash and cash equivalents

    $ 282,959      $ 293,576   

Restricted cash

      158,992        152,916   

Short-term investments

      15,298        18,612   

Accounts receivable, net

      174,612        151,084   

Prepaid and other current assets

      342,798        340,885   

Deferred income taxes

      23,786        22,401   
  

 

 

    

 

 

  

Total current assets

      998,445        979,474   
  

 

 

    

 

 

  

Property and equipment, net

      7,589,815        7,189,465   

Goodwill

      3,854,931        3,808,426   

Other intangible assets, net

      6,637,882        6,580,305   

Deferred income taxes

      268,349        264,294   

Deferred rent asset

      983,140        918,847   

Notes receivable and other non-current assets

      515,175        504,466   
  

 

 

    

 

 

  

TOTAL

    $ 20,847,737      $ 20,245,277   
  

 

 

    

 

 

  

LIABILITIES AND EQUITY

     

CURRENT LIABILITIES:

     

Accounts payable

    $ 132,734      $ 172,426   

Accrued expenses

      422,614        415,075   

Distributions payable

      139,837        575   

Accrued interest

      117,632        105,751   

Current portion of long-term obligations

      1,225,992        70,132   

Unearned revenue

      204,437        162,079   
  

 

 

    

 

 

  

Total current liabilities

      2,243,246        926,038   
  

 

 

    

 

 

  

Long-term obligations

      12,749,471        14,408,146   

Asset retirement obligations

      556,881        526,930   

Other non-current liabilities

      889,975        794,123   
  

 

 

    

 

 

  

Total liabilities

      16,439,573        16,655,237   
  

 

 

    

 

 

  

COMMITMENTS AND CONTINGENCIES

     

EQUITY:

     

Preferred stock

      60        —     

Common stock

      3,988        3,976   

Additional paid-in capital

      5,772,269        5,130,616   

Distributions in excess of earnings

      (911,163 )      (1,081,467 ) 

Accumulated other comprehensive loss

      (250,920 )      (311,220 ) 

Treasury stock

      (207,740 )      (207,740 ) 
  

 

 

    

 

 

  

Total American Tower Corporation equity

      4,406,494        3,534,165   

Noncontrolling interest

      1,670        55,875   
  

 

 

    

 

 

  

Total equity

      4,408,164        3,590,040   
  

 

 

    

 

 

  

TOTAL

    $ 20,847,737      $ 20,245,277   
  

 

 

    

 

 

  

 

(1) December 31, 2013 balances have been revised to reflect purchase accounting measurement period adjustments.

 

7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
     2014     2013     2014     2013  

REVENUES:

         

Rental and management

    $ 1,005,761      $ 789,199      $ 1,965,881      $ 1,566,632   

Network development services

      25,696        19,631        49,665        44,926   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating revenues

      1,031,457        808,830        2,015,546        1,611,558   
  

 

 

    

 

 

    

 

 

    

 

 

  

OPERATING EXPENSES:

       

Costs of operations (exclusive of items shown separately below):

         

Rental and management (including stock-based compensation expense of $343, $257, $715 and $503, respectively)

      263,184        198,217        514,019        389,512   

Network development services (including stock-based compensation expense of $110, $149, $242 and $341, respectively)

      9,091        7,492        19,025        17,963   

Depreciation, amortization and accretion

      245,427        184,608        491,190        370,412   

Selling, general, administrative and development expense (including stock-based compensation expense of $18,382, $16,649, $42,482 and $37,253, respectively)

      98,499        99,803        208,528        200,956   

Other operating expenses

      12,757        5,898        26,648        20,217   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      628,958        496,018        1,259,410        999,060   
  

 

 

    

 

 

    

 

 

    

 

 

  

OPERATING INCOME

      402,499        312,812        756,136        612,498   
  

 

 

    

 

 

    

 

 

    

 

 

  

OTHER INCOME (EXPENSE):

         

Interest income, TV Azteca, net of interest expense of $370, $371, $741 and $742 respectively

      2,662        3,586        5,257        7,129   

Interest income

      2,281        1,412        4,299        3,126   

Interest expense

      (146,234 )      (100,815 )      (289,541 )      (212,581 ) 

Loss on retirement of long-term obligations

      (1,284 )      (2,669 )      (1,522 )      (37,967 ) 

Other expense (including unrealized foreign currency losses of $23,553, $142,909, $25,558 and $120,766, respectively)

      (16,463 )      (141,660 )      (20,206 )      (119,369 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total other expense

      (159,038 )      (240,146 )      (301,713 )      (359,662 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

      243,461        72,666        454,423        252,836   

Income tax (provision) benefit

      (21,802 )      11,447        (39,451 )      (7,775 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

NET INCOME

      221,659        84,113        414,972        245,061   

Net loss attributable to noncontrolling interest

      12,772        15,708        21,958        26,167   
  

 

 

    

 

 

    

 

 

    

 

 

  

NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS

      234,431        99,821        436,930        271,228   

Dividends declared on preferred stock

      (4,375 )      —          (4,375 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS

    $ 230,056      $ 99,821      $ 432,555      $ 271,228   
  

 

 

    

 

 

    

 

 

    

 

 

  

NET INCOME PER COMMON SHARE AMOUNTS:

       

Basic net income attributable to American Tower Corporation common stockholders

    $ 0.58      $ 0.25      $ 1.09      $ 0.69   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted net income attributable to American Tower Corporation common stockholders

    $ 0.58      $ 0.25      $ 1.08      $ 0.68   
  

 

 

    

 

 

    

 

 

    

 

 

  

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

       

Basic

      395,872        395,420        395,511        395,330   
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

      399,588        399,458        399,452        399,659   
  

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS DECLARED PER COMMON SHARE

    $ 0.34      $ 0.27      $ 0.66      $ 0.53   

 

8

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

     Six months ended
June 30,		  
     2014     2013  

CASH FLOWS FROM OPERATING ACTIVITIES:

     

Net income

    $ 414,972      $ 245,061   

Adjustments to reconcile net income to cash provided by operating activities:

     

Stock-based compensation expense

      43,439        38,097   

Depreciation, amortization and accretion

      491,190        370,412   

Loss on early retirement of securitized debt

      1,269        35,288   

Other non-cash items reflected in statements of operations

      48,636        127,946   

Increase in net deferred rent asset

      (46,293 )      (53,017 ) 

Increase in restricted cash

      (194 )      (27,961 ) 

Increase in assets

      (28,473 )      (10,229 ) 

Increase in liabilities

      147,836        58,924   
  

 

 

    

 

 

  

Cash provided by operating activities

      1,072,382        784,521   
  

 

 

    

 

 

  

CASH FLOWS FROM INVESTING ACTIVITIES:

   

Payments for purchase of property and equipment and construction activities

      (466,247 )      (280,605 ) 

Payments for acquisitions, net of cash acquired

      (315,527 )      (311,170 ) 

Proceeds from sale of short-term investments and other non-current assets

      338,787        27,978   

Payments for short-term investments

      (332,684 )      (36,881 ) 

Deposits, restricted cash, investments and other

      (61,134 )      (1,096 ) 
  

 

 

    

 

 

  

Cash used for investing activities

      (836,805 )      (601,774 ) 
  

 

 

    

 

 

  

CASH FLOWS FROM FINANCING ACTIVITIES:

   

Borrowings under credit facilities

      360,000        249,000   

Proceeds from issuance of senior notes, net

      769,640        983,354   

Proceeds from other long-term borrowings

      3,033        16,000   

Proceeds from issuance of Securities in securitization transaction, net

      —          1,778,496   

Repayments of notes payable, credit facilities and capital leases

      (1,838,728 )      (2,938,699 ) 

(Distributions to) contributions from noncontrolling interest holders, net

      (291 )      17,721   

Purchases of common stock

      —          (74,625 ) 

Proceeds from stock options and stock purchase plan

      30,738        19,752   

Proceeds from the issuance of preferred stock, net

      583,326        —     

Payment for early retirement of securitized debt

      (6,767 )      (29,234 ) 

Deferred financing costs and other financing activities

      (22,914 )      (13,641 ) 

Distributions paid on common stock

      (127,269 )      (102,984 ) 
  

 

 

    

 

 

  

Cash used for financing activities

      (249,232 )      (94,860 ) 
  

 

 

    

 

 

  

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

      3,038        (8,058 ) 
  

 

 

    

 

 

  

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

      (10,617 )      79,829   

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

      293,576        368,618   
  

 

 

    

 

 

  

CASH AND CASH EQUIVALENTS, END OF PERIOD

    $ 282,959      $ 448,447   
  

 

 

    

 

 

  

CASH PAID FOR INCOME TAXES, NET

    $ 35,776      $ 17,153   
  

 

 

    

 

 

  

CASH PAID FOR INTEREST

    $ 270,257      $ 181,315   
  

 

 

    

 

 

  

 

9

UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT

(In thousands, except percentages. Totals may not add due to rounding.)

 

Three months ended June 30, 2014

  
     Rental and Management              
     Domestic     International     Total     Network
Development
Services		     Total  
            

Segment revenues

    $ 659,743      $ 346,018      $ 1,005,761      $ 25,696      $ 1,031,457   

Segment operating expenses (1)

      126,340        136,501        262,841        8,981        271,822   

Interest income, TV Azteca, net

      —          2,662        2,662        —          2,662   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment Gross Margin

      533,403        212,179        745,582        16,715        762,297   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment selling, general, administrative and development expense (1)

      28,313        34,472        62,785        2,326        65,111   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment Operating Profit

    $ 505,090      $ 177,707      $ 682,797      $ 14,389      $ 697,186   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment Operating Profit Margin

      77 %      51 %      68 %      56 %      68 % 

Percent of total Operating Profit

      72 %      25 %      98 %      2 %      100 % 

Three months ended June 30, 2013

  
     Rental and Management              
     Domestic     International     Total     Network
Development
Services		     Total  

Segment revenues

    $ 521,043      $ 268,156      $ 789,199      $ 19,631      $ 808,830   

Segment operating expenses (1)

      95,208        102,752        197,960        7,343        205,303   

Interest income, TV Azteca, net

      —          3,586        3,586        —          3,586   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment Gross Margin

      425,835        168,990        594,825        12,288        607,113   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment selling, general, administrative and development expense (1)

      24,243        32,490        56,733        2,324        59,057   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment Operating Profit

    $ 401,592      $ 136,500      $ 538,092      $ 9,964      $ 548,056   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Segment Operating Profit Margin

      77 %      51 %      68 %      51 %      68 % 

Percent of total Operating Profit

      73 %      25 %      98 %      2 %      100 % 

 

(1) Excludes stock-based compensation expense.

 

10

UNAUDITED SELECTED FINANCIAL INFORMATION

(In thousands, except where noted. Totals may not add due to rounding.)

SELECTED BALANCE SHEET DETAIL:

 

Long-term obligations summary, including current portion    June 30,
2014		      Pro Forma
June 30,
2014 (1)		  

2012 Credit Facility

    $ —         $ —     

2013 Credit Facility

      783,000         923,000   

2013 Short-Term Credit Facility

      —           —     

2013 Term Loan

      1,500,000         1,500,000   

4.625% Senior Notes due 2015

      599,875         599,875   

7.000% Senior Notes due 2017

      500,000         500,000   

4.500% Senior Notes due 2018

      999,575         999,575   

3.400% Senior Notes due 2019

      1,006,137         1,006,137   

7.250% Senior Notes due 2019

      296,999         296,999   

5.050% Senior Notes due 2020

      699,454         699,454   

5.900% Senior Notes due 2021

      499,444         499,444   

4.700% Senior Notes due 2022

      698,928         698,928   

3.500% Senior Notes due 2023

      992,872         992,872   

5.000% Senior Notes due 2024

      1,011,306         1,011,306   
  

 

 

     

 

 

  

Total unsecured at American Tower Corporation

    $ 9,587,590       $ 9,727,590   
  

 

 

     

 

 

  

Secured Tower Revenue Securities, Series 2013-1A

      500,000         500,000   

Secured Tower Revenue Securities, Series 2013-2A

      1,300,000         1,300,000   

GTP Notes (2)

      1,526,470         1,526,470   

Unison Notes (3)

      204,559         204,559   

South African facility (4)

      84,852         84,852   

Colombian long-term credit facility (4)

      71,399         71,399   

Colombian bridge loans (4)

      57,418         57,418   

Mexican loan (4)

      298,575         298,575   

Shareholder loans (5)

      262,426         227,331   

Capital leases

      82,174         82,174   
  

 

 

     

 

 

  

Total secured or subsidiary debt

    $ 4,387,873       $ 4,352,778   
  

 

 

     

 

 

  

Total debt

    $ 13,975,463       $ 14,080,368   
  

 

 

     

 

 

  

Cash and cash equivalents

      282,959      
  

 

 

     

Net debt (total debt less cash and cash equivalents)

    $ 13,692,504      
  

 

 

     

 

(1) Pro Forma for the Company’s additional net borrowings of $140.0 million under its 2013 Credit Facility and the purchase of the $35 million Colombian shareholder loan in July 2014.
(2) The GTP Notes are secured debt and were assumed in connection with an acquisition.
(3) The Unison Notes are secured debt and were assumed in connection with an acquisition.
(4) Denominated in local currency.
(5) Denominated in USD, reflects balances attributable to minority shareholder loans in the Company’s joint ventures in Colombia, Ghana and Uganda.

 

11

UNAUDITED SELECTED FINANCIAL INFORMATION

(In thousands, except where noted. Totals may not add due to rounding.)

SELECTED BALANCE SHEET DETAIL (CONTINUED):

 

Calculation of Net Leverage Ratio ($ in thousands)    Three months ended
June 30, 2014		  

Total debt

    $ 13,975,463   

Cash and cash equivalents

    $ 282,959   
  

 

 

  

Numerator: net debt (total debt less cash and cash equivalents)

    $ 13,692,504   

Adjusted EBITDA

    $ 682,180   

Denominator: annualized Adjusted EBITDA

      2,728,720   
  

 

 

  

Net Leverage Ratio

      5.0x   
  

 

 

  

 

Share count rollforward: (in millions of shares)    Three months ended
June 30, 2014		  

Total common shares, beginning of period

      395.7   

Common shares repurchased

      —     

Common shares issued

      0.3   
  

 

 

  

Total common shares outstanding, end of period (1)

      396.0   
  

 

 

  

 

(1) As of June 30, 2014, excludes (a) 3.6 million potentially dilutive common shares associated with vested and exercisable stock options with an average exercise price of $46.29 per common share, (b) 3.6 million potentially dilutive common shares associated with unvested stock options and (c) 1.7 million potentially dilutive common shares associated with unvested restricted stock units.

SELECTED STATEMENT OF OPERATIONS DETAIL:

Rental and management segment straight-line revenue and expense (1):

 

     Three months ended
June 30,		  
Domestic straight-line revenue and expense detail:    2014      2013  

Straight-line revenue

    $ 22,725       $ 30,216   

Straight-line expense

    $ 6,470       $ 5,387   

 

     Three months ended
June 30,		  
International straight-line revenue and expense detail:    2014      2013  

Straight-line revenue

    $ 10,423       $ 4,226   

Straight-line expense

    $ 1,402       $ 2,524   

 

(1) In accordance with GAAP, the Company recognizes rental and management revenue and expense related to non-cancellable tenant and ground lease agreements with fixed escalations on a straight-line basis, over the applicable lease term. As a result, the Company’s revenue recognized may differ materially from the amount of cash collected per tenant lease, and the Company’s expense incurred may differ materially from the amount of cash paid per ground lease. Additional information regarding straight-line accounting can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 in the section entitled “Revenue Recognition,” in note 1, “Business and Summary of Significant Accounting Policies” within the notes to the consolidated financial statements. The above table sets forth a summary of total rental and management straight-line revenue and expense, which represents the non-cash revenue and expense recorded due to straight-line recognition.

 

12

UNAUDITED SELECTED FINANCIAL INFORMATION

($ in thousands. Totals may not add due to rounding.)

SELECTED STATEMENT OF OPERATIONS DETAIL (CONTINUED):

 

     Three months ended
June 30,		  
International pass-through revenue detail:    2014      2013  

Pass-through revenue

    $ 93,236       $ 71,279   

 

     Three months ended
June 30,		  
Pre-paid rent detail (1):    2014     2013  

Beginning balance

    $ 404,262      $ 212,671   

Cash

      37,531        18,031   

Amortization (2)

      (34,790 )      (14,054 ) 
  

 

 

    

 

 

  

Ending balance

    $ 407,003      $ 216,649   
  

 

 

    

 

 

  

 

(1) Reflects capital contributions and prepayments associated with long-term tenant leases and amortization of recognized GAAP revenue associated with the leases corresponding to the capital contributions or prepayments.
(2) Includes the impact of fluctuations in foreign currency exchange rates.

 

     Three months ended
June 30,		  
Selling, general, administrative and development expense breakout:    2014      2013  

Total rental and management overhead

    $ 62,785       $ 56,733   

Network development services segment overhead

      2,326         2,324   

Corporate and development expenses

      15,006         24,097   

Stock-based compensation expense

      18,382         16,649   
  

 

 

     

 

 

  

Total

    $ 98,499       $ 99,803   
  

 

 

     

 

 

  

The following table reflects the estimated impact of foreign currency exchange rate fluctuations, straight-line revenue and expense recognition and material one-time items on total rental and management revenue, Adjusted EBITDA and AFFO:

The calculation of Core Growth is as follows:

 

Three months ended June 30, 2014

    Total Rental and
Management
Revenue		     Adjusted
EBITDA		     AFFO  

Core Growth

      32.9 %      33.7 %      31.4 % 

Estimated impact of fluctuations in foreign currency exchange rates

      (4.0 )%      (3.0 )%      (3.9 )% 

Estimated impact of straight-line revenue and expense recognition

      (1.5 )%      (1.9 )%      —     

Estimated impact of material one-time items

      —          1.4 %      1.9 % 
  

 

 

    

 

 

    

 

 

  

Reported growth

      27.4 %      30.2 %      29.4 % 

The components of Core Growth in rental and management revenue are as follows:

 

Three months ended June 30, 2014    Domestic     International     Total  

Organic Core Growth

      11.4 %      17.9 %      13.6 % 

New Property Core Growth(1)

      18.4 %      20.7 %      19.3 % 
  

 

 

    

 

 

    

 

 

  

Core Growth

      29.8 %      38.6 %      32.9 % 

 

(1) Revenue growth attributable to sites added to the portfolio on or after April 1, 2013.

 

13

UNAUDITED SELECTED FINANCIAL INFORMATION

($ in thousands. Totals may not add due to rounding.)

SELECTED CASH FLOW DETAIL:

 

     Three months ended
June 30,		  
Payments for purchase of property and equipment and construction activities:    2014      2013  

Discretionary - capital projects

    $ 155,401       $ 72,856   

Discretionary - ground lease purchases

      22,835         17,060   

Start-up capital projects

      4,589         7,813   

Redevelopment

      48,367         23,371   

Capital improvements

      17,225         26,442   

Corporate

      3,939         9,157   
  

 

 

     

 

 

  

Total

    $ 252,356       $ 156,700   
  

 

 

     

 

 

  

 

     Six Months Ended
June 30,		  
Payments for purchase of property and equipment and construction activities:    2014      2013  

Discretionary - capital projects

    $ 266,573       $ 130,126   

Discretionary - ground lease purchases

      67,695         31,860   

Start-up capital projects

      9,622         14,536   

Redevelopment

      78,739         45,083   

Capital improvements

      34,456         42,324   

Corporate

      9,162         16,675   
  

 

 

     

 

 

  

Total

    $ 466,247       $ 280,605   
  

 

 

     

 

 

  

SELECTED PORTFOLIO DETAIL – OWNED SITES:

 

Tower Count (1):    As of
March 31, 2014		      Constructed      Acquired      Adjustments     As of
June 30, 2014		  

United States

      27,846         276         85         (4 )      28,203   

Brazil

      6,753         50         109         (3 )      6,909   

Chile

      1,159         28         —           —          1,187   

Colombia

      3,496         46         —           (2 )      3,540   

Costa Rica

      457         6         —           (3 )      460   

Germany

      2,031         —           —           —          2,031   

Ghana

      1,992         6         —           —          1,998   

India

      11,938         183         —           (9 )      12,112   

Mexico

      8,385         5         314         (17 )      8,687   

Panama(2)

      58         —           —           —          58   

Peru

      498         1         —           —          499   

South Africa

      1,903         9         —           —          1,912   

Uganda

      1,194         32         —           —          1,226   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total

      67,710         642         508         (38 )      68,822   

 

(1) Excludes in-building and outdoor distributed antenna system networks.
(2) Identified as asset held-for-sale.

 

14

UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED FINANCIAL MEASURES

(In thousands, except per share data and percentages. Totals may not add due to rounding.)

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

 

     Three months ended
June 30,		  
     2014     2013  

Net income

    $ 221,659      $ 84,113   

Income tax provision (benefit)

      21,802        (11,447 ) 

Other expense

      16,463        141,660   

Loss on retirement of long-term obligations

      1,284        2,669   

Interest expense

      146,234        100,815   

Interest income

      (2,281 )      (1,412 ) 

Other operating expenses

      12,757        5,898   

Depreciation, amortization and accretion

      245,427        184,608   

Stock-based compensation expense

      18,835        17,055   
  

 

 

    

 

 

  

Adjusted EBITDA

    $ 682,180      $ 523,959   
  

 

 

    

 

 

  

Divided by total revenue

      1,031,457        808,830   
  

 

 

    

 

 

  

Adjusted EBITDA Margin

      66 %      65 % 
  

 

 

    

 

 

  

The reconciliation of net income to NAREIT Funds From Operations and the calculation of AFFO and AFFO per Share are presented below:

 

     Three months ended
June 30,		  
     2014     2013  

Net income

    $ 221,659      $ 84,113   

Real estate related depreciation, amortization and accretion

      219,171        160,610   

Losses from sale or disposal of real estate and real estate related impairment charges

      559        2,401   

Dividends declared on preferred stock

      (4,375 )      —     

Adjustments for unconsolidated affiliates and noncontrolling interest

      6,965        8,813   
  

 

 

    

 

 

  

NAREIT Funds From Operations

      443,979        255,937   
  

 

 

    

 

 

  

Straight-line revenue

      (33,148 )      (34,442 ) 

Straight-line expense

      7,872        7,911   

Stock-based compensation expense

      18,835        17,055   

Non-cash portion of tax provision (benefit)

      5,120        (15,057 ) 

Non-real estate related depreciation, amortization and accretion

      26,256        23,998   

Amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges

      3,176        7,395   

Other expense (1)

      16,463        141,660   

Loss on retirement of long-term obligations

      1,284        2,669   

Other operating expense (2)

      12,198        3,497   

Capital improvement capital expenditures

      (17,225 )      (26,442 ) 

Corporate capital expenditures

      (3,939 )      (9,157 ) 

Adjustments for unconsolidated affiliates and noncontrolling interest

      (6,965 )      (8,813 ) 
  

 

 

    

 

 

  

AFFO

    $ 473,906      $ 366,211   
  

 

 

    

 

 

  

Divided by weighted average diluted shares outstanding

      399,588        399,458   

AFFO per Share

    $ 1.19      $ 0.92   

 

(1) Primarily includes unrealized losses on foreign currency exchange rate fluctuations.
(2) Primarily includes acquisition related costs, impairment charges and integration costs.

 

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