YOU ARE AT:Archived ArticlesAmerican Tower, Global Signal report solid quarterly results

American Tower, Global Signal report solid quarterly results

American Tower Corp. and Global Signal Inc. continued the wave of solid third-quarter 2004 financial results from wireless tower companies.

American Tower reported total revenues of $199.2 million and income from operations of $24.6 million, increased from $186.9 million and $12 million, respectively, a year ago. Net loss was $55.9 million, or 25 cents per share, while earnings before interest, taxes, depreciation and amortization increased 15 percent from the year-ago period to reach $115.7 million. American Tower generated net cash of $43.8 million, up 49 percent from last year, and free cash flow was up 114 percent to $40.1 million.

“The consistency of our operating performance and the strong fundamentals of our customers and the wireless communication industry, combined with the continued improvement in our financial position, give us confidence in our future performance as we look forward to 2005 and beyond,” said Jim Taiclet, chairman and chief executive officer.

For the full year 2004, American Tower expects revenues to reach between $700 million and $703 million, with EBITDA of $448 million to $452 million.

Shares of American Tower were trading down slightly at $16.48 following the news.

For Global Signal, revenues reached $46.5 million, up from $41.9 million a year ago, and net income increased 57 percent to $6.3 million, or 12 cents per share. Meanwhile, EBITDA was up 27 percent to $26.5 million. Free cash flow was approximately $18.9 million, or 35 cents per share.

The company’s revenue, tower cash flow, EBITDA and free cash flow numbers all beat analyst Raymond James & Associates Inc. estimates by nearly $1 million each. “Since tower business has good visibility we are not surprised,” the analyst firm said in a research note.

Global Signal was also trading down slightly at $23.69 per share following its earnings news.

The company did not release expectations for full-year 2004.

SBA Communications Corp.’s results are due later today.

ABOUT AUTHOR