BOSTON-American Tower Corp.’s second-quarter 2003 financial results reflected increased revenues as well as increased losses, and showed the company is still shedding non-core assets to further its financial stability.
The company recorded total revenues of $178.2 million, up from $165.8 million in the second quarter of 2002. Rental and management segment revenues accounted for $151.9 million, up from $132.0 million for the year-ago quarter. Net loss, however, also increased to $107.7 million, or 53 cents per share, from $101.2 million, or 52 cents per share, for the same period in 2002.
Adjusted earnings before interest, taxes, depreciation and amortization increased to $96.2 million, from $72.9 million in the year-ago period. Free cash flow, which American Tower considers “adjusted EBITDA less interest expense and capital expenditures incurred, excluding acquisitions and divestitures,” was $14.2 million.
Organic same-tower revenue and same-tower cash flow growth was 12 percent as of the end of the quarter, compared with 19 percent as of the beginning of the second quarter of 2002.
American Tower plans to sell its steel fabrication and tall tower construction service subsidiary, Kline Iron & Steel Co. Inc., within the next 12 months and expects to generate a total $30 million from the sale of non-core assets in 2003.
“While our customers are also focused on delivering free cash flow, the demands on their networks are increasing, so the deployment of coverage and capacity sites continues,” said Steve Dodge, chairman and chief executive officer. “As the correlation between network quality and financial performance grows stronger, and as certain companies effectively promote perceived network advantages, we believe the motivation to invest in new sites and site upgrades will intensify.”
