BOSTON-American Tower Corp.’s third quarter results were met with congratulations from industry analysts on the company’s subsequent conference call.
Despite a $353.9 million net loss, or $1.81 per share, and decreased revenues, American Tower reported an EBITDA of $86 million, up 27 percent from the year-ago period and tower cash flow up 33 percent from last year to $86.8 million. The company owned 12,912 North American wireless towers at the end of the third quarter.
American Tower credited its cost reduction program, implemented early this year, for its positive results, as well as its current financial portfolio. The company said it has $65 million in cash and it has not drawn on its $650 million revolving credit facility, of which $490 is available, since April. American Tower estimates it has $555 million in total liquidity.
The company also released expectations for the fourth quarter and 2003. Certain previously announced asset sales, part of an effort to focus on the core business, should net the company an additional $100 million in the coming quarters and American Tower should realize some benefit from the sale of Verestar, to be completed by year-end.
American Tower hopes to become free cash flow positive in early 2003. Company shares were down nearly 12 percent following the earnings news to trade at $1.48.
