American Tower Corp. (AMT) today posted first quarter 2010 financial results. On a GAAP basis, first quarter net income was $96.3 million or 24 cents per share, compared to a net income of $58.6 million or 15 cents per share in the prior-year quarter. Quarterly EPS of 24 cents was well below the Zacks Consensus Estimate of 18 cents.
Higher revenue and 17.2% decline in effective tax rate due to implementation of tax-planning initiatives in Latin America are the primary reasons for this encouraging performance.
Quarterly total revenue of $454.4 million was an improvement of 11.2% year-over-year and was in line with the Zacks Consensus Estimate. Main 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 first quarter 2010 was $311.5 million, up 10.8% over the prior-year quarter. Quarterly adjusted EBITDA margin was 69%. Gross margin was 76.6% in the same quarter compared to 76.1% in the year-ago quarter. Quarterly recurring cash flow increased 16.9% year-over-year to $225.1 million.
Quarterly selling, general & administrative expenditure was $53.5 million compared to $57.6 million in the year-ago quarter. During the reported quarter, American Tower repurchased 1.2 million shares of its Class A common stock for total consideration of approximately $51.5 million.
During the first quarter 2010, American Tower generated $253.7 million of cash from operations, compared to $205.7 million in the prior-year quarter. Quarterly free cash flow (cash flow from operations less capital expenditure) was $198.6 million, compared to $156.1 million in the year-ago quarter.
At the end of the first quarter of 2010, the company had $371.8 million of cash & cash equivalents and around $4,230 million of outstanding debt on its balance sheet, compared to $257.1 million of cash & cash equivalents and $4,211.6 million of outstanding debt at the end of the previous year.
Rental and Management Segment
Quarterly revenue of $443.8 million was an improvement of 12.1% year-over-year. Gross profit increased 12.1% over prior-year quarter to $346.9 million.
Network Development Services Segment
Quarterly revenue of $10.6 million was down 16.6% year-over-year. Gross profit decreased 10.7% over prior-year quarter to $4.6 million.
Tower Count
During the first quarter 2010, American Tower completed the construction of 236 wireless sites and purchased 164 wireless sites. As of Mar 31, 2010, the company had total 27,661 communications towers of which 27,037 for Wireless network, 431 for Broadcasting and the rest 193 for DAS (Distributed Antenna System).
Future 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 in the range of $300 million – $310 million. Adjusted EBITDA will be in the range of $1,260 million – $1,290 million. Cash flow from operations will be around $950 million – $980 million. Capital expenditures will be around $300 million – $350 million.
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