American Tower stock up on Q1 earnings

American Tower Corp. (AMT) stock ticked up 3.2% at press time today on first-quarter financials that included total revenues of $562.7 million, up 23.8% from the year-ago period. Net income inched down 4.6% to nearly $92 million. The company continues to expand its tower portfolio domestically and abroad and increased its 2011 outlook to reflect that expansion.
“Our financial results for the first quarter demonstrate the robust environment in the U.S. wireless market, driven by immense growth in demand for broadband data services, and the ongoing success of our international expansion strategy,” said CEO Jim Taiclet. The CEO also used the first-quarter conference call so say he was mischaracterized in a recent press article, and that American Tower supports AT&T Mobility’s attempted purchase of T-Mobile USA Inc.
American Tower’s domestic rental and management segment revenue rose 12.9% to $417.6 million, which represented 74.2% of total revenues. In addition, domestic rental and management segment operating profit increased 13.6% to $316.3 million. Adjusted earnings before interest, taxes depreciation and amortization (EBITDA) was up 21.1% to $377 million, and operating income rose 22.1% to $218.3 million.
The tower company built or bought about 1,000 sites in the United States and about 8,900 internationally. By the end of the year, American Tower expects to own about 17,800 towers internationally, representing about 45% of its portfolio. The company expects to hold about 39,400 towers by the end of the year.
The company spent nearly $840 million in the quarter, comprised of $617 million in acquisitions, $98 million in capital expense and $123 million in stock repurchases.
The company updated its full-year guidance to reflect revenue from its purchase of 627 towers in Brazil and the pending purchase of 900 towers in Ghana. The company expects to make between $2.3 billion and $2.34 billion from rental and management segment revenue in 2011, a 20% increase from previous guidance, and expects its (EBITDA) to increase 15% from previous guidance to between $1.53 billion and $1.57 billion.
American Tower acquired about 140 sites in Chile from VTR Banda Ancha S.A. for about $20 million.
In South Africa, the company completed the sale of 959 towers from Cell C Ltd. for about $150 million. American Tower expects to add another 400 towers there this year for about $60 million and may buy another 1,800 towers that are either under construction or expected to be under construction in the next one or two years for about $230 million. Cell C will be an anchor tenant on each of these towers.
In Brazil, American Tower bought 627 towers for $553 million in a deal expected to close in the second quarter.
The company also purchased exclusive use rights for 116 towers from Telef