2016 Q2 Form 10-Q Financial Statement

#000105350716000048 Filed on July 28, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2015 Q2
Revenue $1.442B $1.174B
YoY Change 22.81% 13.86%
Cost Of Revenue $7.140M $8.173M
YoY Change -12.64% -10.1%
Gross Profit $1.435B $1.166B
YoY Change 23.05% 14.07%
Gross Profit Margin 99.5% 99.3%
Selling, General & Admin $138.2M $116.3M
YoY Change 18.82% 18.11%
% of Gross Profit 9.63% 9.98%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $397.8M $328.4M
YoY Change 21.13% 33.82%
% of Gross Profit 27.72% 28.16%
Operating Expenses $138.2M $116.3M
YoY Change 18.82% 18.11%
Operating Profit $432.8M $389.8M
YoY Change 11.04% -3.16%
Interest Expense $181.0M $148.5M
YoY Change 21.9% 1.55%
% of Operating Profit 41.83% 38.1%
Other Income/Expense, Net -$196.8M -$218.6M
YoY Change -9.97% 37.48%
Pretax Income $236.0M $171.1M
YoY Change 37.89% -29.71%
Income Tax $43.51M $13.96M
% Of Pretax Income 18.44% 8.15%
Net Earnings $187.6M $156.1M
YoY Change 20.21% -33.43%
Net Earnings / Revenue 13.01% 13.29%
Basic Earnings Per Share $0.38 $0.31
Diluted Earnings Per Share $0.37 $0.30
COMMON SHARES
Basic Shares Outstanding 424.9M shares 423.2M shares
Diluted Shares Outstanding 429.0M shares 426.9M shares

Balance Sheet

Concept 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $411.0M $315.0M
YoY Change 30.48% 5.7%
Cash & Equivalents $410.5M $274.7M
Short-Term Investments $40.00M
Other Short-Term Assets $534.0M $360.0M
YoY Change 48.33% -23.73%
Inventory
Prepaid Expenses $59.06M $29.81M
Receivables $285.4M $212.9M
Other Receivables $92.00M $52.00M
Total Short-Term Assets $1.321B $940.6M
YoY Change 40.4% -5.8%
LONG-TERM ASSETS
Property, Plant & Equipment $10.58B $9.586B
YoY Change 10.32% 26.31%
Goodwill $4.982B $4.037B
YoY Change 23.42% 4.71%
Intangibles $11.59B $9.853B
YoY Change 17.63% 48.44%
Long-Term Investments
YoY Change
Other Assets $809.3M $736.8M
YoY Change 9.83% 43.02%
Total Long-Term Assets $29.42B $25.53B
YoY Change 15.24% 28.61%
TOTAL ASSETS
Total Short-Term Assets $1.321B $940.6M
Total Long-Term Assets $29.42B $25.53B
Total Assets $30.74B $26.47B
YoY Change 16.13% 26.97%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $120.6M $82.85M
YoY Change 45.55% -37.58%
Accrued Expenses $617.7M $413.0M
YoY Change 49.57% -2.28%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $314.1M $38.81M
YoY Change 709.15% -96.83%
Total Short-Term Liabilities $1.656B $1.037B
YoY Change 59.71% -53.79%
LONG-TERM LIABILITIES
Long-Term Debt $18.40B $16.19B
YoY Change 13.7% 26.95%
Other Long-Term Liabilities $1.058B $1.050B
YoY Change 0.83% 17.95%
Total Long-Term Liabilities $19.46B $1.050B
YoY Change 1753.94% 17.95%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.656B $1.037B
Total Long-Term Liabilities $19.46B $1.050B
Total Liabilities $22.81B $19.10B
YoY Change 19.47% 16.16%
SHAREHOLDERS EQUITY
Retained Earnings -$1.033B -$876.6M
YoY Change 17.88% -3.79%
Common Stock $4.280M $4.260M
YoY Change 0.47% 6.82%
Preferred Stock
YoY Change
Treasury Stock (at cost) $207.7M $207.7M
YoY Change 0.0% 0.0%
Treasury Stock Shares 2.810M shares 2.810M shares
Shareholders Equity $6.774B $7.311B
YoY Change
Total Liabilities & Shareholders Equity $30.74B $26.47B
YoY Change 16.13% 26.97%

Cashflow Statement

Concept 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income $187.6M $156.1M
YoY Change 20.21% -33.43%
Depreciation, Depletion And Amortization $397.8M $328.4M
YoY Change 21.13% 33.82%
Cash From Operating Activities $747.8M $526.6M
YoY Change 42.01% -11.61%
INVESTING ACTIVITIES
Capital Expenditures -$165.2M -$151.9M
YoY Change 8.76% -39.79%
Acquisitions
YoY Change
Other Investing Activities -$1.193B -$678.1M
YoY Change 75.89% 131.12%
Cash From Investing Activities -$1.358B -$830.0M
YoY Change 63.6% 52.1%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 696.4M 230.1M
YoY Change 202.65% -338.94%
NET CHANGE
Cash From Operating Activities 747.8M 526.6M
Cash From Investing Activities -1.358B -830.0M
Cash From Financing Activities 696.4M 230.1M
Net Change In Cash 86.30M -73.30M
YoY Change -217.74% 58.66%
FREE CASH FLOW
Cash From Operating Activities $747.8M $526.6M
Capital Expenditures -$165.2M -$151.9M
Free Cash Flow $913.0M $678.5M
YoY Change 34.56% -20.0%

Facts In Submission

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434000 USD
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:13px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">American Tower Corporation (together with its subsidiaries, &#8220;ATC&#8221; or the &#8220;Company&#8221;) is one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. The Company&#8217;s primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries, which the Company refers to as its property operations. Additionally, the Company offers tower-related services, referred to as its services operations, in the United States, including site acquisition, zoning and permitting and structural analysis, which primarily support its site leasing business, including the addition of new tenants and equipment on its sites. </font></div><div style="line-height:120%;padding-top:13px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s portfolio primarily consists of towers it owns and towers it operates pursuant to long-term lease arrangements, as well as distributed antenna system (&#8220;DAS&#8221;) networks, which provide seamless coverage solutions for in-building and outdoor wireless environments. In addition to the communications sites in its portfolio, the Company manages rooftop and tower sites for property owners under various contractual arrangements. The Company also holds property interests that it leases to communications service providers and third-party tower operators.</font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">ATC is a holding company that conducts its operations through its directly and indirectly owned subsidiaries and its joint ventures. ATC&#8217;s principal domestic operating subsidiaries are American Towers LLC and SpectraSite Communications, LLC. ATC conducts its international operations primarily through its subsidiary, American Tower International, Inc., which in turn conducts operations through its various international holding and operating subsidiaries and joint ventures. </font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 21, 2016, the Company significantly expanded its Asia segment portfolio by acquiring a </font><font style="font-family:inherit;font-size:10pt;">51%</font><font style="font-family:inherit;font-size:10pt;"> controlling ownership interest in Viom Networks Limited (&#8220;Viom&#8221;), a telecommunications infrastructure company that owns and operates over </font><font style="font-family:inherit;font-size:10pt;">42,000</font><font style="font-family:inherit;font-size:10pt;"> wireless communications towers and </font><font style="font-family:inherit;font-size:10pt;">200</font><font style="font-family:inherit;font-size:10pt;"> indoor DAS networks in India (the &#8220;Viom Acquisition&#8221;). Subsequent to the closing, Viom was renamed ATC Telecom Infrastructure Private Limited (&#8220;ATC TIPL&#8221;).</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company operates as a real estate investment trust for U.S. federal income tax purposes (&#8220;REIT&#8221;). Accordingly, the Company generally is not subject to U.S. federal income taxes on income generated by its REIT operations, including the income derived from leasing space on its towers, as the Company receives a dividends paid deduction for distributions to stockholders that generally offsets its income and gains.&#160;&#160;However, the Company remains obligated to pay U.S. federal income taxes on earnings from its domestic taxable REIT subsidiaries (&#8220;TRSs&#8221;). In addition, the Company&#8217;s international assets and operations, regardless of their designation for U.S. tax purposes, continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The use of TRSs enables the Company to continue to engage in certain businesses while complying with REIT qualification requirements. The Company may, from time to time, change the election of previously designated TRSs to be included as part of the REIT. As of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;">, the Company&#8217;s REIT-qualified businesses included its U.S. tower leasing business, most of its operations in Costa Rica, Germany and Mexico and a majority of its services segment and indoor DAS networks business.</font></div><div style="line-height:120%;text-indent:30px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying consolidated and condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. The financial information included herein is unaudited. However, the Company believes that all adjustments considered necessary for a fair presentation of its financial position and results of operations for such periods have been included herein. The consolidated and condensed consolidated financial statements and related notes should be read in conjunction with the Company&#8217;s Annual Report on Form&#160;10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> (the &#8220;</font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;"> Form 10-K&#8221;). The results of operations for the three and six months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results that may be expected for the entire year. </font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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