American Tower Corp.’s first-quarter 2003 results reflected a continued focus on its core rental and management operations and optimism in financial expectations for the latter half of 2003.
The company reported revenues of $177.2 million, down from the $186.6 million reported a year ago, which American Tower said was due to its focus on rental and management operations and reduction of service operations. Jim Taiclet, president and chief operating officer of American Tower, reiterated the company’s intention to ensure its services business remains profitable, adding that it is only expected to make up a small portion of total revenues.
Net loss for the quarter was $91.6 million, or 47 cents per share, an improvement from the $634.4 million, or $3.25 per share, net loss for first-quarter 2002. EBITDA increased to $89.7 million and for the second consecutive quarter, the company reported positive free cash flow of $7 million.
American Tower’s guidance anticipates total revenues and EBITDA will increase and net loss will decrease throughout 2003. “The likelihood of [carriers] actually spending money is greater this year than it has been in the past,” said Chairman and Chief Executive Officer Steve Dodge.
American Tower earlier in the week said it will resell 1.4 million shares of Class A common stock and will resell 808,000 warrants to purchase shares of Class A common stock. The company does not expect to receive any proceeds unless the warrants are fully exercised for cash. The transaction should help the company adjust its cost structure while preserving its current stock price, which experienced gains throughout the first quarter and has been trading above the $5 mark since early March. “Perhaps the most satisfying aspect of the quarter has been to see our investors making money once again,” said Dodge. American Tower was trading at $7.38 per share at press time.
In other tower news, SBA Communications Corp. announced it has received a $195 million credit facility from GE Structured Finance and affiliates of Oak Hill Advisors Inc. to refinance the existing senior credit facility of subsidiary SBA Telecommunications Inc.
SBA owes $255 million under the existing facility and plans to use proceeds from the refinancing, cash on hand and part of the proceeds from the first closing of the previously announced sale of towers to AAT Communications Corp. to repay the facility in full. The new facility will include a $95 million term loan and a $100 million revolving line of credit. SBA was trading at $1.50 per share.
Also, Crown Castle International Corp., which is scheduled to release its first-quarter earnings news this week,announced it will pay the quarterly dividend on its 6.25 percent Convertible Preferred Stock on May 15 to holders of record as of May 1 in shares of its common stock. Crown was trading at $6.39 per share at press time.
