American Tower (AMT) 8-K Results of Operations and Financial Condition

Exhibit 99.1

UNAUDITED CONDENSED

CONSOLIDATED BALANCE SHEETS

(In thousands)	December 31, 2005 (a)			December 31, 2004
ASSETS
Current Assets:
Cash and cash equivalents	$	112,701		$	215,557
Accounts receivable, net		36,995			38,634
Deferred income taxes		31,359			6,090
Other current assets		44,823			48,756
Total current assets		225,878			309,037
Property and equipment, net		3,460,526			2,273,356
Goodwill		2,142,551			592,683
Other intangible assets, net		2,077,312			985,303
Deferred income taxes		504,659			633,814
Notes receivable and other long-term assets		357,294			291,779
Total	$	8,768,220		$	5,085,972
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	175,558		$	121,672
Accrued interest		37,850			39,466
Current portion of long-term obligations		162,153			138,386
Other current liabilities		77,655			32,681
Total current liabilities		453,216			332,205
Long-term obligations		3,451,276			3,155,228
Other long-term liabilities		327,354			121,505
Total liabilities		4,231,846			3,608,938
Minority interest in subsidiaries		9,794			6,081
STOCKHOLDERS’ EQUITY
Class A Common Stock		4,156			2,297
Additional paid-in capital		7,317,668			4,012,425
Accumulated deficit		(2,710,993	)		(2,539,403	)
Unearned compensation		(2,497	)
Accumulated other comprehensive loss		(803	)
Treasury stock		(80,951	)		(4,366	)
Total stockholders’ equity		4,526,580			1,470,953
Total	$	8,768,220		$	5,085,972

NOTE:

(a) The allocation of the SpectraSite purchase price is based on a preliminary third-party valuation and management’s estimates and assumptions which are subject to adjustment as additional information is obtained and the third-party valuation is finalized.

UNAUDITED CONDENSED

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)	Three Months Ended December 31,						Year Ended December 31,
	2005 (a)			2004			2005 (a)			2004
REVENUES:
Rental and management	$	302,792		$	177,313		$	929,762		$	684,422
Network development services		4,833			7,383			15,024			22,238
Total operating revenues		307,625			184,696			944,786			706,660
OPERATING EXPENSES:
Rental and management		98,863			60,278			306,148			237,312
Network development services		3,547			6,761			11,981			18,801
Depreciation, amortization and accretion		127,747			81,071			411,254			329,449
Corporate general, administrative and development expense		12,674			7,077			37,977			27,468
Impairments, net loss on sale of long-lived assets, restructuring and merger related expense		23,895			8,072			34,232			23,876
Total operating expenses		266,726			163,259			801,592			636,906
OPERATING INCOME FROM CONTINUING OPERATIONS		40,899			21,437			143,194			69,754
OTHER INCOME (EXPENSE):
Interest income, TV Azteca, net		3,541			3,540			14,232			14,316
Interest income		1,544			1,442			4,402			4,844
Interest expense		(57,009	)		(59,428	)		(222,419	)		(262,237	)
Loss on retirement of long-term obligations		(21,260	)		(50,624	)		(67,110	)		(138,016	)
Other (expense) income		(395	)		(763	)		227			(2,798	)
Total other expense		(73,579	)		(105,833	)		(270,668	)		(383,891	)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTEREST AND LOSS ON EQUITY METHOD INVESTMENTS		(32,680	)		(84,396	)		(127,474	)		(314,137	)
Income tax (provision) benefit		(18,833	)(b)		17,492			(4,003	)(b)		80,176
Minority interest in net earnings of subsidiaries		(336	)		(182	)		(575	)		(2,366	)
Earnings (loss) on equity method investments		42			(1,064	)		(2,078	)		(2,915	)
LOSS FROM CONTINUING OPERATIONS BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		(51,807	)		(68,150	)		(134,130	)		(239,242	)
LOSS FROM DISCONTINUED OPERATIONS, NET		(9	)		(5,880	)		(1,935	)		(8,345	)
LOSS BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET		(51,816	)		(74,030	)		(136,065	)		(247,587	)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF INCOME TAX BENEFIT OF $11,697		(35,525	)(c)					(35,525	)(c)
NET LOSS	$	(87,341	)	$	(74,030	)	$	(171,590	)	$	(247,587	)
BASIC AND DILUTED LOSS PER COMMON SHARE AMOUNTS:
Loss from continuing operations	$	(0.13	)	$	(0.30	)	$	(0.44	)	$	(1.07	)
Loss from discontinued operations					(0.02	)		(0.01	)		(0.03	)
Cumulative effect of change in accounting principle		(0.09	)					(0.12	)
NET LOSS PER COMMON SHARE	$	(0.21	)	$	(0.32	)	$	(0.57	)	$	(1.10	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		412,595			228,469			302,510			224,336

NOTES:

(a) Includes the results of operations of SpectraSite as of August 3, 2005. In addition, the allocation of the SpectraSite purchase price is based on a preliminary third-party valuation and management’s estimates and assumptions, which are subject to adjustment as additional information is obtained and the third-party valuation is finalized.

(b) The income tax (provision) benefit in the fourth quarter of 2005 has been reduced by $29.5 million to reflect a reduction in management’s estimate of the net realizable value of the Company’s income tax refund claim based upon the current status of the claim.

(c) As of December 31, 2005, the Company adopted the provisions of FASB Interpretation No. 47 “Accounting for Conditional Asset Retirement Obligations”. The impact of the adoption resulted in a non-cash charge of $35.5 million (net of a $11.7 million tax benefit) recorded as a cumulative effect of a change in accounting principle related to changes in settlement date assumptions and the related depreciation and accretion of its asset retirement obligations.

UNAUDITED CONDENSED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)	Year Ended December 31,
	2005			2004
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net loss	$	(171,590	)	$	(247,587	)
Cumulative effect of change in accounting principle, net		35,525
Non-cash items reflected in statements of operations, primarily depreciation and amortization		565,912			498,835
Increase in assets		(20,384	)		(17,330	)
Decrease in liabilities		(12,259	)		(17,218	)
Cash provided by operating activities		397,204			216,700
CASH FLOWS (USED FOR) PROVIDED BY INVESTING ACTIVITIES:
Payments for purchase of property and equipment and construction activities		(88,637	)		(42,181	)
Payments for acquisitions		(7,479	)		(33,403	)
Payments for acquisition of Mexico minority interest		(7,270	)		(3,947	)
Cash acquired from SpectraSite merger, net of transaction costs		16,696
Proceeds from sale of businesses and other long-term assets		6,881			31,987
Restricted cash and investments					170,036
Deposits, investments and other long-term assets		(725	)		2,328
Cash (used for) provided by investing activities		(80,534	)		124,820
CASH FLOWS USED FOR FINANCING ACTIVITIES:
Repayment of notes payable, credit facilities and capital leases		(1,949,444	)		(2,003,401	)
Borrowings under credit facilities		1,543,000			700,000
Proceeds from issuance of debt securities and notes payable					1,072,500
Net proceeds from equity offering, stock options and stock purchase plans		65,357			40,556
Purchase of treasury stock		(68,927	)
Deferred financing costs and other financing activities		(9,512	)		(41,083	)
Cash used for financing activities		(419,526	)		(231,428	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(102,856	)		110,092
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		215,557			105,465
CASH AND CASH EQUIVALENTS, END OF YEAR	$	112,701		$	215,557
CASH PAID FOR INCOME TAXES	$	18,519		$	4,257
CASH PAID FOR INTEREST	$	183,307		$	209,874