Exhibit 99.1
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[AMERICAN TOWER LOGO]
ATC CONTACT: ANNE ALTER
Director of Investor Relations
Telephone: (617) 375-7500
FOR IMMEDIATE RELEASE
AMERICAN TOWER ESTIMATES FOURTH QUARTER RESULTS
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AND REAFFIRMS FISCAL YEAR 2001 OUTLOOK
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Boston, Massachusetts January 5, 2001 - American Tower Corporation (NYSE: AMT)
today announced that it expects fourth quarter 2000 revenues to be in a range of
$226 million to $233 million. This estimated revenue exceeds the Company's
previously announced expectations due primarily to stronger than expected sales
in the Services and Internet, voice, data and video segments. American Tower
also expects its fourth quarter 2000 EBITDA ("operating income (loss) before
depreciation and amortization plus interest income TV Azteca, net") to be in a
range of $56 million and $60 million. This estimated EBITDA is below the
Company's previously announced expectations due primarily to a one time reserve
for bad debt of up to $7 million related to sales of components to Anicom, Inc.,
(formerly, NASDAQ: ANIC) a Services customer in the components business.
American Tower also expects newly constructed towers for the fourth quarter 2000
to be greater than 500, exceeding expectations, bringing the full year total to
over 1,650. The fourth quarter annualized tenant net lease-up rate is expected
to be 0.45 broadband equivalent tenants per tower.
Steve Dodge, Chief Executive Officer of American Tower stated, "It's important
to emphasize that this reserve for bad debt, while very disappointing, is a one
time event that has absolutely no bearing on our outlook for 2001. We remain
very encouraged by our strong revenue growth and the strong underlying demand
for our towers and services that this growth evidences. Our 2000 annual new
tower development total of 1,650 greatly surpasses our original plan of 1,200,
which sets us up very well for 2001 and beyond but which also serves to diminish
EBITDA in the short term. Additionally, during the second half of 2000, we have
created and staffed 20 management areas within our five regions further
strengthening our new tower development, leasing, and customer service
functions. While we are certain that this investment will help our business in
2001 and beyond -- and has already contributed to the accelerating pace of our
new tower development activities -- it puts pressure on our margins in the near
term. We continue to show a determination, to invest in those critical areas we
believe will enhance future value creation."
American Tower also announced that it reaffirms its fiscal year 2001 outlook.
An "Estimated Summary of Fourth Quarter 2000 Results and Reaffirmed Fiscal Year
2001 Outlook" is included in the attached exhibit.
The estimated financial results contained in this announcement for American
Tower's fourth quarter are preliminary, and are subject to the closing of its
financial books and the completion of customary quarter-end review procedures
and the fiscal year 2000 audit. Final financial results for the quarter and the
year may vary. American Tower expects to release its financial results for the
fourth quarter 2000 and fiscal year 2000 during the week of February 26, 2001.
(continued)
Page 2
American Tower will host a conference call on Friday, January 5, 2001 at 11:30
a.m. Eastern to discuss the revised company outlook. The call will be hosted by
Joe Winn, Chief Financial Officer, who will be joined by Steve Dodge, Chief
Executive Officer. The dial-in numbers are US: (800) 230-1085, international:
(612) 332-0637, no access codes required. A replay of the call will be
available from 4:00 p.m. Eastern Friday, January 5, 2001 until 11:59 p.m.
Eastern Friday, January 12, 2001. The replay dial-in numbers are US: (800) 475-
6701, and international: (320) 365-3844, access code 563766.
American Tower is the leading independent owner, operator and developer of
broadcast and wireless communications sites in North America. Giving effect to
pending transactions, American Tower operates approximately 13,000 sites in the
United States, Mexico and Canada, including approximately 300 broadcast tower
sites. Of the 13,000 sites, approximately 12,000 are owned or leased towers and
approximately 1,000 are managed and lease/sublease sites. Based in Boston,
American Tower has regional hub offices in Boston, Atlanta, Chicago, Houston,
San Francisco and Mexico City. For more information about American Tower
Corporation and its subsidiary Verestar, Inc., please visit our web sites
www.americantower.com and www.verestar.com.
This press release contains "forward-looking statements" that involve a number
of risks and uncertainties. Forward-looking statements include the information
regarding the estimated results of operations for the fourth quarter and our
outlook for the results of operation for 2001 and statements regarding our
goals, beliefs, strategies, objectives, plans or current expectations and
matters that are not historical facts. For example, when we use the words
believe, expect, estimate, anticipate or similar expressions, we are making
forward-looking statements. You should be aware that certain important factors
may affect us in the future and could cause actual results to differ materially
from those expressed in our forward-looking statements. These important factors
include, but are not limited to (i) our substantial capital requirements and
leverage due principally to our ongoing acquisitions and construction, (ii) our
dependence on the following: wireless communications demand, use of satellites
for Internet data transmission, and implementation of digital television, (iii)
the success of our tower construction program, (iv) our ability to locate
attractive acquisition targets, acquire them on terms we feel are reasonable,
and successfully integrate our acquisitions, and (v) the governmental,
expropriation, currency and fund repatriation risks inherent in our growing
foreign operations. In addition, please also refer to the "Risk Factors"
section of our registration statement on Form S-3 filed with the SEC on August
31, 2000 for other important factors that may cause actual results to differ
materially from those expressed in our forward-looking statements. We undertake
no obligation to update the forward-looking statements contained in this press
release, to reflect subsequently occurring events or circumstances.
(continued)
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AMERICAN TOWER CORPORATION
Estimated Summary of Fourth Quarter 2000 Results
and Reaffirmed Fiscal Year 2001 Outlook
January 5, 2001
In Millions
Fourth Quarter 2000 Fiscal Year 2001
Estimated Ranges Reaffirmed Ranges
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Rental and Management Revenue $ 83 to $ 85 $ 405 to $ 420
Rental and Management Cash Flow 46 to 48 235 to 250
(includes Interest Income TV Azteca, net)
Services Revenue 94 to 97 405 to 470
Services Cash Flow* 6 to 7 65 to 75
Internet, Voice, Data and Video Transmission Revenue 49 to 51 270 to 290
Internet, Voice, Data and Video Transmission Cash Flow 13 to 14 60 to 65
Total Revenue 226 to 233 1,080 to 1,180
Total Cash Flow 65 to 69 360 to 390
EBITDA Excluding Development Expense 60 to 64 338 to 368
EBITDA 56 to 60 335 to 365
*Includes $7 million reserve for bad debt noted in text.
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