American Tower Corp. (AMT) today declared fourth quarter 2009 financial results. On a GAAP basis, fourth quarter net income from continuing operations was $64.2 million or 16 cents per share compared to a net income of $82.8 million or 20 cents per share from continuing operations in the prior-year quarter.

Quarterly EPS of 16 cents was well below the Zacks Consensus Estimate of 18 cents. Significant increase in loss on retirement of long-term obligations and higher income taxes hurt the company’s bottom-line in the reported quarter.

Quarterly total revenue of $448 million was an improvement of 9.7% year-over-year. This was mostly in line with the Zacks Consensus Estimate of $446 million. The primary reason for the solid top-line performance was the healthy growth of the company’s core Rental and Management business segment.

Adjusted EBITDA in the fourth quarter was $308.2 million, up 10.1% over the prior-year quarter. Quarterly adjusted EBITDA margin was 69%. Gross margin was 76% in the same quarter compared to 75.9% in the year-ago quarter.

Quarterly selling, general & administrative expenditure was $46.3 million compared to $45 million in the year-ago quarter. During the reported quarter, American Tower repurchased 0.7 million shares of its Class A common stock for total consideration of approximately $27.6 million.

During the fourth quarter, American Tower generated $192.7 million of cash compared to $186.9 million in the prior-year quarter. Quarterly free cash flow (cash flow from operation less capital expenditure) was $124.7 million compared to $108.6 million in the year-ago quarter.

At the end of fiscal 2009, the company had $257.1 million in cash & cash equivalents and $4,211.6 million of outstanding debt compared to $145.1 million in cash & cash equivalents and $4,333 million of outstanding debt at the end of the previous year.

Rental and Management Segment

Quarterly revenue of $435.2 million was an improvement of 10.4% year-over-year. Gross profit increased 10.2% over prior-year quarter to $334.8 million.

Network Development Services Segment

Quarterly revenue of $12.8 million was down 8.8% year-over-year. Gross profit decreased 3% over prior-year quarter to $5.7 million.

Tower Count

During the fourth quarter 2009, American Tower completed the construction of 355 wireless sites and purchased 524 wireless sites. As of December 31, 2009, the company had total 27,256 communications towers of which 26,638 for Wireless network, 429 for Broadcasting and the rest 189 for DAS (Distributed Antenna System).

Proposed Acquisition

Subsequent to the end of the quarter, American Tower, through its wholly owned Indian subsidiary Transcend, entered into a definitive stock purchase agreement with Essar Telecom Infrastructure of India to acquire substantially all of the issued and outstanding shares of Essar. Essar Telecom Infrastructure operates approximately 4,450 wireless communications sites in India, including a number of sites that are currently under construction.

The total consideration for the acquisition is estimated to be approximately $430 million and is subject to certain post closing adjustments. This deal is expected to be close by the end of the second quarter of 2010. As a result of this acquisition, the company’s wireless communications site portfolio in India will increase to more than 7,000 sites.

Financial Outlook

For full fiscal 2010, revenue from the Rental & Management segment is expected to range between $1,810 million – $1,840 million. Income from continuing operations will be within the range of $300 million – $310 million. Adjusted EBITDA will be within the range of $1,260 million – $1,290 million. Cash flow from operating activity will be around $950 million – $980 million. Capital expenditures will be around $300 million – $350 million.

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