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American Tower Corp. Reports Operating Results (10-Q)

August 02, 2012 | About:
10qk

10qk

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American Tower Corp. (AMT) filed Quarterly Report for the period ended 2012-06-30.

American Tower Corp has a market cap of $28.54 billion; its shares were traded at around $72.18 with a P/E ratio of 54.8 and P/S ratio of 11.7. The dividend yield of American Tower Corp stocks is 1.2%. American Tower Corp had an annual average earning growth of 9.9% over the past 10 years.

Highlight of Business Operations:

Domestic rental and management segment gross margin for the three months ended June 30, 2012 increased 14% to $385.3 million, including over 11% attributable to our legacy sites and approximately 3% attributable to new sites. The growth was primarily attributable to the increase in revenue as described above, and was partially offset by a less than 1% increase in direct operating costs, of which approximately 1% was attributable to expense decreases on our legacy domestic sites, primarily related to cost management initiatives, which was offset by an increase of approximately 2% attributable to the incremental direct operating costs associated with the addition of approximately 540 new domestic sites since April 1, 2011.

International rental and management segment gross margin for the three months ended June 30, 2012 increased 28% to $135.7 million, including approximately 3% attributable to our legacy sites and approximately 25% attributable to new sites. The growth was primarily attributable to the increase in revenue as described above, and was partially offset by a 35% increase in direct operating costs, including pass-through expenses. Direct operating expenses increased 1% as a result of the incremental costs associated with our legacy international sites and approximately 34% as a result of the incremental costs associated with the addition of approximately 11,700 new international sites since April 1, 2011.

Other operating expenses for the three months ended June 30, 2012 decreased 37% to $5.9 million. This decrease was primarily attributable to a decrease of approximately $5.0 million in acquisition related costs, including contingent consideration, and non-recurring consulting and legal costs incurred in 2011 associated with our REIT Conversion, partially offset by an increase of approximately $1.5 million in impairments and net loss on sales or disposals of assets.

Domestic rental and management segment gross margin for the six months ended June 30, 2012 increased 16% to $779.4 million, including approximately 13% attributable to our legacy sites and over 3% attributable to new sites. The growth was primarily attributable to the increase in revenue as described above, and was partially offset by an increase in direct operating costs of over 6%, of which 4% was attributable to expense increases on our legacy domestic sites, primarily from increased straight-line rent expense and higher than normal repairs and maintenance activity, and approximately 2% was attributable to the incremental direct operating costs associated with the addition of approximately 640 new domestic sites since January 1, 2011.

International rental and management segment gross margin for the six months ended June 30, 2012 increased over 37% to $265.6 million, was primarily attributable to new sites. The growth was primarily attributable to the increase in revenue as described above, and was partially offset by a 45% increase in direct operating costs, including pass-through expenses. Direct operating expenses increased approximately 49% as a result of the incremental costs associated with the addition of approximately 13,720 new international sites since January 1, 2011. The increase was partially reduced by a 4% decrease in expenses on our legacy international sites, primarily attributable to changes in foreign currency exchange rates.

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