BOSTON-American Tower Corp.’s stock hit a 52-week low after the company reported earnings for the second quarter ended June 30.
Although American Tower narrowed its losses, its stock dropped to $1.40 in mid-day trading, down 20 cents from the previous day’s close. The company reported a loss of $101.2 million, or 52 cents per share, for the quarter, compared with a loss of $103.9 million, or 54 cents per share, for second-quarter 2001.
American Tower said its revenues for the quarter totaled $257.4 million, an increase from the $246.7 million reported for the same period last year.
“We continue to execute on our business plan. Our core tower business performed well, with solid organic revenue gains, margin expansion and strong sequential cash flow growth,” said Steve Dodge, American Tower’s chairman and chief executive officer. “The tower business contributed over 90 percent of second-quarter total divisional cash flow and exceeded the high end of our tower cash flow outlook range for the second consecutive quarter.”
Dodge said the company’s capital expenditures for the second half of the year have been significantly reduced and consequently, it will borrow money at a nominal rate until it reaches cash flow even, which is expected to occur in early 2003.
The company owned 12,844 towers in North America at the end of the second quarter.
