Exhibit 99.2
[LOGO] AMERICAN TOWER
FOR IMMEDIATE RELEASE
ATC Contact: Anne Alter
Vice President of Finance, Investor Relations
Telephone: (617) 375-7500
AMERICAN TOWER CORPORATION REPORTS SIGNIFICANT PROGRESS AND
FOURTH QUARTER FREE CASH FLOW
. Achieves free cash flow positive in the fourth quarter 2002, ending the
quarter with $127 million of cash and cash equivalents
. EBITDA before restructuring excluding approximately $4 million of net,
non-recurring positive items increased 25% to $90.2 million from $72.4
million in the fourth quarter 2001
. Cash provided by operating activities increased to $105 million for the
full year 2002 from $26 million in 2001
. Net loss of $52.4 million in the fourth quarter 2002 decreased from $149.7
million in the fourth quarter 2001
BOSTON, MASSACHUSETTS - FEBRUARY 24, 2003 - American Tower Corporation (NYSE:
AMT) today reported increases in EBITDA ("loss from operations before
depreciation and amortization and impairments and net loss on sale of long-lived
assets, plus interest income TV Azteca, net"), EBITDA before restructuring
expense, tower cash flow ("rental and management revenue less rental and
management operating expenses plus interest income TV Azteca, net") and cash
provided by operating activities for the quarter ended and full year ended
December 31, 2002 as compared to the same periods in the prior year.
For the three months ended December 31, 2002, revenues decreased to $208.1
million, from $224.0 million for the three months ended December 31, 2001. Loss
from continuing operations before extraordinary loss and cumulative effect of
change in accounting principle decreased to $46.8 million, or $0.24 per share,
for the three months ended December 31, 2002 from $137.2 million, or $0.70 per
share, for the same period in 2001. Net Loss decreased to $52.4 million, or
$0.27 per share, for the three months ended December 31, 2002 from $149.7
million, or $0.77 per share, for the same period in 2001.
EBITDA increased to $90.6 million for the three months ended December 31, 2002
from $67.2 million for the same period in 2001. EBITDA before restructuring
increased to $94.2 million for the three months ended December 31, 2002 from
$72.4 million for the same period in 2001. Tower cash flow increased to $95.9
million for the three months ended December 31, 2002 from $70.2 million for the
same period in 2001. The Company generated Free Cash Flow ("EBITDA before
restructuring expense less interest expense and capital expenditures incurred")
of $10 million for the three months ended December 31, 2002. The three months
ended December 31, 2002 was the first quarter in which the Company attained
positive Free Cash Flow.
For the full year ended December 31, 2002, revenues increased to $788.4 million,
from $785.2 million for the full year ended December 31, 2001. Loss from
continuing operations before extraordinary loss and cumulative effect of change
in accounting principle decreased to $314.8 million, or $1.61 per share, for the
full year ended December 31, 2002 from $389.9 million, or $2.04 per share, for
the full year 2001. Net Loss, including a $562.6 million cumulative effect of
change in accounting principle, increased to $1.1 billion, or $5.84 per share,
for the full year ended December 31, 2002 from $450.1 million, or $2.35 per
share, for the full year 2001. As of January 1, 2002, the Company adopted the
provisions of SFAS No. 142 "Goodwill and Other Intangible Assets" (SFAS 142).
Accordingly, the Company ceased amortizing
(Continued)
Page 2 of 12
goodwill on January 1, 2002. The adoption of SFAS 142 reduced amortization
expense in continuing and discontinued operations by approximately $24.0 million
for the three months ended December 31, 2002 and $96.0 million for the year
ended December 31, 2002.
EBITDA increased to $315.3 million for the full year ended December 31, 2002
from $235.2 million for the full year 2001. EBITDA before restructuring
increased to $325.9 million for the full year ended December 31, 2002 from
$240.4 million for the full year 2001. Tower cash flow increased to $334.3
million for the full year ended December 31, 2002 from $237.9 million for the
full year 2001.
Results for the three months and full year ended December 31, 2002 include
approximately $4 million of net, non-recurring positive items, primarily
resulting from a lease buyout from a customer.
Steve Dodge, American Tower's Chairman and Chief Executive Officer, stated,
"2002 was a year of operational and strategic execution. Throughout the year, we
stated that we would continue to deliver solid tower performance and margin
expansion; execute and complete comprehensive operational initiatives; and
execute certain strategic transactions, including the sale of certain service
companies, a plan for the separation of Verestar and the resolution of the
October 2003 putable convert. We believe we have delivered on all of these
commitments.
"In the face of a very challenging telecom market, we continue to experience
steady organic growth in our tower rental business. Our organic same tower
revenue and cash flow growth, which represent the increase in revenue and cash
flow on the towers we owned at both the end of the fourth quarter 2002 and the
beginning of the fourth quarter 2001, are a strong 15% and 22%, respectively.
"In November 2001, we said we would accelerate the process of shifting our focus
from acquisitions and development activities to operational execution. During
2002 we simplified and streamlined the organization, moving from five regions
and twenty areas to three regions and ten areas, we pulled our lease processing
and accounting operations out of the regions and centralized them, and we
integrated our construction unit and tower operations unit into one. These
activities resulted in a significant increase in productivity per employee,
sharply improved margin performance, and faster and more consistent delivery on
behalf of customers. Notably, we also significantly tightened our return
criteria for new builds, resulting in greatly reduced capital spending.
"In addition, we announced a series of strategic transactions which have
significantly improved the company's overall asset mix. To date, we have
announced or closed the sale of approximately $200 million of non-core assets
and have announced our intention to divest additional non-core assets, including
our Verestar subsidiary, over the course of 2003. We also announced that we
would be using $100 million of proceeds from our asset sales to acquire
strategic tower assets. As a result of these initiatives, we have improved the
quality of our cash flow by downsizing or eliminating our more volatile
businesses and investing selectively in high return, tower assets.
"As a result of our solid tower performance and related initiatives, we have
reduced our leverage by nearly three full turns over the course of 2002.
Importantly, we were able to meet our internal goal of achieving Free Cash Flow
in the fourth quarter, one quarter earlier than forecast. Finally, as a result
of our new financing and subsequent bank amendment the October 2003 putable
convert's days are numbered.
"Good people make good things happen, and I'd like to acknowledge the fine work
of our senior team and of our managers and employees throughout the company. I
am betting on this group to keep delivering."
OPERATING HIGHLIGHTS
As noted above, results for the three months and full year ended December 31,
2002 include approximately $4 million of net, non-recurring positive items,
primarily resulting from a lease buyout. The following metrics are presented
excluding the $4 million of net, non-recurring positive items to facilitate
period to period operational comparisons.
(Continued)
Page 3 of 12
Organic same tower revenue and cash flow growth in the fourth quarter 2002 on
the 12,199 North American towers owned as of the beginning of the fourth quarter
2001 and the end of the fourth quarter 2002 was 15% and 22%, respectively.
Annualized lease-up activity on the 13,007 wireless towers owned at the
beginning and the end of the fourth quarter 2002 was 0.22 broadband equivalent
(BBE) tenants per tower, excluding contractual step downs in certain paging
contracts and the effect of the lease buyout included in the net, non-recurring
positive items described above. Our BBE lease-up is calculated net of churn,
excludes anchor tenants on build-to-suit towers and contractual escalators, and
does not consider the growth on broadcast towers.
Tower cash flow increased 31% to $91.9 million and margins improved to 63.4%, a
692 basis point increase from the same period in 2001. On a sequential basis,
tower cash flow increased $6.3 million and margins improved approximately 190
basis points in the fourth quarter 2002 from the third quarter 2002. The
incremental margin expansion was achieved through a combination of organic
revenue growth and active management of costs.
Free Cash Flow was $6 million in the fourth quarter 2002.
ASSET TRANSACTIONS
On page 11 of this release, the Company has provided a schedule of its publicly
announced strategic transactions. The Company is continuing to pursue strategic
divestitures of non-core assets and anticipates additional strategic activity in
the first quarter 2003 and beyond.
FINANCING HIGHLIGHTS
In January 2003, the Company and its subsidiary, American Tower Escrow
Corporation ("Escrow Corporation"), completed an approximately $420 million
offering, consisting of 12.25% senior subordinated discount notes of Escrow
Corporation and warrants to purchase class A common stock of the Company. The
purpose of the financing was to refinance a portion of our outstanding
indebtedness under our credit facilities by prepaying a portion of our
outstanding term loans and replacing a portion of the revolving loan capacity,
and to obtain bank consent to enable the Company to fund purchases of its 2.25%
convertible notes due 2009.
In February 2003, the Company successfully amended its credit facilities to
allow the Company to consummate the merger of Escrow Corporation with American
Towers, Inc. and to use the proceeds from the offering to repurchase the 2.25%
convertible notes. In connection with the amendment, the Company will prepay
$200 million of term loans under the credit facilities and reduce the revolving
loan commitments thereunder by $225 million to $425 million. The credit
facilities also were amended to modify and add certain provisions.
The Company (upon consummation of the merger described above which is expected
to occur later this month) has the right to use $217 million to pay, repurchase,
redeem, or retire the 2.25% convertible notes. If the put option of the holders
of the 2.25% convertible notes is satisfied by other means or if it is not
exercised in full by the holders, the Company may use any remaining funds to
pay, repurchase, redeem, or retire any convertible or senior notes of the
Company until June 30, 2004. If the Company has not completely utilized the $217
million for convertible and senior note purchases by June 30, 2004, the Company
will be required to apply any remaining cash to prepayments of the term loans
under its credit facilities.
As of December 31, 2002, the Company had $127 million in cash and had not drawn
on its revolving loan facility since April, 2002. Based on the financial
covenants of the amended credit facilities, the Company has the ability to draw
the entire undrawn portion of its $425 million revolving loan. The undrawn and
available portion amounts to $246 million, which is the $425 million total less
$160 million outstanding on the revolving loan less $19 million in outstanding
letters of credit. Combined with cash on hand as of December 31, 2002, the
Company had a total of $373 million in total liquidity, pro forma for the credit
facilities amendment.
(Continued)
Page 4 of 12
QUARTERLY AND FULL YEAR 2003 OUTLOOK
On page 12 of this release, the Company has provided its 2003 outlook on a full
year and quarterly basis for each its two operating segments.
The Company anticipates a solid lease-up environment in 2003 with revenue growth
rates of 10% to 14%. Also, the Company has adjusted its Rental and Management
outlook to reflect fourth quarter 2002 actual results.
The Company has adjusted its revenue and cash flow outlook for Services to
better reflect current business trends.
The Company maintains its expectation for total capital expenditures incurred of
between $50 million and $75 million. Rental and Management capital expenditures
incurred are expected to range from $45 million to $65 million, including $20
million to $35 million for constructing 100 to 150 new wireless towers, and $25
million to $30 million for tower maintenance and augmentation. Services and
Corporate capital expenditures incurred are expected to range from $2 million to
$5 million and Verestar capital expenditures incurred are expected to range from
$3 to $5 million.
CONFERENCE CALL INFORMATION
American Tower will host a conference call today at 11:00 a.m. Eastern to
discuss quarterly results and the Company's outlook for quarterly 2003 and full
year 2003. The call will be hosted by Brad Singer, Chief Financial Officer, who
will be joined by Steve Dodge, Chief Executive Officer, Jim Taiclet, President,
and other executive officers. The dial-in numbers are US/Canada: 800-603-0809,
international: 706-643-3257, no access codes required. A replay of the call will
be available from 2:00 p.m. Eastern Monday, February 24, 2003 until 12:00 a.m.
Eastern Monday, March 3, 2003. The replay dial-in numbers are US: 800-642-1687,
and international: 706-645-9291, access code 7743718. American Tower will also
sponsor a live simulcast of the call on its web site,
http://investor.americantower.com. A replay of the call will be available on the
web site shortly after the conclusion of the call.
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 15,000 sites in the
United States, Mexico, and Brazil, including approximately 300 broadcast tower
sites. Of the 15,000 sites, approximately 14,000 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 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.
ABOUT EBITDA, EBITDA BEFORE RESTRUCTURING, TOWER CASH FLOW AND FREE CASH FLOW
We do not consider EBITDA, EBITDA before restructuring, tower cash flow and free
cash flow as substitutes for other measures of profitability or liquidity
determined in accordance with generally accepted accounting principles (GAAP) in
the United States, such as operating income or cash flows from operating
activities. EBITDA, EBITDA before restructuring tower cash flow and free cash
flow are not calculated in accordance with GAAP: however, we have included them
in this release as additional information because they are commonly used in the
communications site industry as a measure of a company's operating performance.
More specifically, we believe they can assist in comparing company performances
on a consistent basis without regard to depreciation and amortization. Our
concern is that depreciation and amortization can vary significantly among
companies depending on accounting methods, particularly where acquisitions or
non-operating factors including historical cost bases are involved.
Notwithstanding the foregoing, our measure of EBITDA, EBITDA before
restructuring, tower cash flow and free cash flow may not be comparable to
similarly titled measures of other companies. Our results under GAAP are set
forth in the financial statements attached to this release.
(Continued)
Page 5 of 12
This press release contains "forward-looking statements" concerning our goals,
beliefs, expectations, strategies, objectives, plans, future operating results
and underlying assumptions, and other statements that are not necessarily based
on historical facts. Actual results may differ materially from those indicated
in our forward-looking statements as a result of various important factors,
including: (1) a decrease in demand for tower space, which would materially and
adversely affect our operating results; (2) continuation of the current U.S.
economic slowdown, which could materially and adversely affect our business; (3)
our substantial leverage and debt service obligations may adversely affect our
operating results by restricting our ability to allocate capital to income
producing assets; (4) restrictive covenants in our credit facilities and our
senior and convertible notes could adversely affect our business by further
limiting our flexibility; (5) if our wireless service provider customers
consolidate or merge with each other to a significant degree, our growth, our
revenue and our ability to generate positive cash flows could be adversely
affected; (6) due to the long-term expectations of revenue from tenant leases,
we are dependent on the creditworthiness of our tenants; (7) if we issue a
significant amount of equity securities, the trading price for our shares of
Class A Common Stock could be adversely affected; (8) operations in foreign
countries could lead to expropriations, government regulations, funds
inaccessibility, foreign exchange exposure and management problems; and (9) new
technologies could make our tower antenna leasing services less desirable to
potential tenants and result in decreasing revenues. For other important factors
that may cause actual results to differ materially from those indicated in our
forward-looking statements, we refer you to the information under the caption
entitled "Business Factors That May Affect Future Results" in our Form 10-Q for
the quarter ended September 30, 2002, which we incorporate herein by reference.
We undertake no obligation to update the information contained in this press
release to reflect subsequently occurring events or circumstances.
(Continued)
Page 6 of 12
[LOGO]
AMERICAN TOWER
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Twelve Months Ended
(In thousands, except per share data) December 31, December 31,
-------------------------- --------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
REVENUES:
Rental and management $ 149,006 $ 124,282 $ 548,923 $ 435,302
Network development services 59,044 99,726 239,497 349,848
----------- ----------- ----------- -----------
Total operating revenues 208,050 224,008 788,420 785,150
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Rental and management 56,597 57,721 228,519 211,811
Network development services 54,109 88,341 217,690 312,926
Depreciation and amortization (A) 81,549 96,827 316,876 346,020
Corporate general and administrative expense 5,405 7,591 24,349 26,478
Restructuring expense 3,674 5,236 10,638 5,236
Development expense 1,232 1,592 5,896 7,895
Impairments and net loss on sale of long-lived assets 6,222 74,260 90,734 74,260
----------- ----------- ----------- -----------
Total operating expenses 208,788 331,568 894,702 984,626
----------- ----------- ----------- -----------
LOSS FROM OPERATIONS (738) (107,560) (106,282) (199,476)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest income, TV Azteca, net 3,524 3,630 13,938 14,377
Interest income 945 4,638 3,514 28,622
Interest expense (62,694) (68,255) (255,645) (267,825)
Loss on investments and other expense (908) (8,743) (25,579) (38,797)
Loss on term loan cancellation (7,231)
Note conversion expense (26,336)
Minority interest in net earnings of subsidiaries (745) (302) (2,118) (318)
----------- ----------- ----------- -----------
Total other expense (59,878) (69,032) (273,121) (290,277)
----------- ----------- ----------- -----------
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (60,616) (176,592) (379,403) (489,753)
INCOME TAX BENEFIT 13,859 39,372 64,634 99,875
----------- ----------- ----------- -----------
LOSS FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY LOSS
AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (46,757) (137,220) (314,769) (389,878)
LOSS FROM DISCONTINUED OPERATIONS, NET (B) (5,687) (12,489) (263,427) (60,216)
EXTRAORDINARY LOSS ON EXTINGUISHMENT OF
DEBT, NET OF INCOME TAX BENEFIT OF $573 (1,065)
----------- ----------- ----------- -----------
LOSS BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE (52,444) (149,709) (579,261) (450,094)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF
INCOME TAX BENEFIT OF $14,438 (A) (562,618)
----------- ----------- ----------- -----------
NET LOSS $ (52,444) $ (149,709) $(1,141,879) $ (450,094)
=========== =========== =========== ===========
BASIC AND DILUTED NET LOSS PER COMMON SHARE AMOUNTS
Loss from continuing operations before extraordinary loss
and cumulative effect of change in accounting principle $ (0.24) $ (0.70) $ (1.61) $ (2.04)
Discontinued operations (0.03) (0.07) (1.34) (0.31)
Extraordinary loss (0.01)
Cumulative effect of change in accounting principle (2.88)
----------- ----------- ----------- -----------
BASIC AND DILUTED NET LOSS PER COMMON SHARE $ (0.27) $ (0.77) $ (5.84) $ (2.35)
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 195,601 195,164 195,454 191,586
=========== =========== =========== ===========
OTHER OPERATING DATA
(In thousands)
EBITDA (C) $ 90,557 $ 67,157 $ 315,266 $ 235,181
=========== =========== =========== ===========
EBITDA, before restructuring expense (C) $ 94,231 $ 72,393 $ 325,904 $ 240,417
=========== =========== =========== ===========
(Continued)
Page 7 of 12
NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
(A) As of January 1, 2002, the Company adopted the provisions of SFAS No. 142
"Goodwill and Other Intangible Assets" (SFAS 142). Accordingly, the Company
ceased amortizing goodwill on January 1, 2002. The adoption of SFAS 142
reduced amortization expense in continuing and discontinued operations by
approximately $24.0 million for the three months ended December 31, 2002
and $96.0 million for the year ended December 31, 2002. In addition, the
adoption of SFAS 142 resulted in the Company recognizing a $577.0 million
(before giving effect to an income tax benefit of $14.4 million) non-cash
charge related to goodwill impairment within our Satellite and Fiber
Network Access Services segment ($189.2 million) and our Network
Development Services segment ($387.8 million).
(B) During 2002, the Company committed to the disposal of its entire Satellite
and Fiber Network Access Services segment and certain components within its
Rental and Management and Services segments. Accordingly, the above
statements of operations have been adjusted to reflect the results of these
operations as discontinued operations.
(C) Defined as loss from operations before depreciation and amortization and
impairments and net loss on sale of long-lived assets, plus interest
income, TV Azteca, net.
The reconciliation of loss from operations to EBITDA is as follows:
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------- ----------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Loss from operations $ (738) $ (107,560) $ (106,282) $ (199,476)
Depreciation and amortization 81,549 96,827 316,876 346,020
Impairments and net loss on sale of long-lived assets 6,222 74,260 90,734 74,260
Interest income, TV Azteca, net 3,524 3,630 13,938 14,377
------------ ------------ ------------ ------------
EBITDA 90,557 67,157 315,266 235,181
------------ ------------ ------------ ------------
Restructuring expense 3,674 5,236 10,638 5,236
------------ ------------ ------------ ------------
EBITDA, before restructuring expense $ 94,231 $ 72,393 $ 325,904 $ 240,417
============ ============ ============ ============
(Continued)
Page 8 of 12
[LOGO]
AMERCIAN TOWER
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands) December 31, December 31,
2002 2001
-------------- --------------
ASSETS
Current Assets:
Cash and cash equivalents $ 127,292 $ 35,958
Restricted cash 94,071
Accounts receivable, net of allowance for doubtful accounts 83,177 182,612
Other current assets 100,970 209,566
Assets held for sale 234,724
-------------- --------------
Total current assets 546,163 522,207
-------------- --------------
Property and equipment, net 2,734,885 3,287,573
Goodwill and other intangible assets, net 1,745,504 2,507,911
Deferred income taxes 369,349 245,215
Other long-term assets 262,130 266,817
-------------- --------------
Total $ 5,658,031 $ 6,829,723
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 124,340 $ 214,539
Accrued interest 63,611 59,492
Convertible notes - 2.25% 210,899
Current portion of long-term obligations (excluding 2.25% notes) 59,243 12,585
Other current liabilities 47,123 56,098
Liabilities held for sale 165,006
-------------- --------------
Total current liabilities 670,222 342,714
-------------- --------------
Long-term obligations 3,194,537 3,549,375
Other long-term liabilities 37,382 54,501
-------------- --------------
Total liabilities 3,902,141 3,946,590
-------------- --------------
Minority interest in subsidiaries 15,567 13,937
-------------- --------------
STOCKHOLDERS' EQUITY:
Class A Common Stock 1,856 1,851
Class B Common Stock 79 80
Class C Common Stock 23 23
Additional paid-in capital 3,642,019 3,639,510
Accumulated deficit (1,887,030) (745,151)
Accumulated other comprehensive loss (5,564) (16,057)
Note receivable (6,720) (6,720)
Treasury stock (4,340) (4,340)
-------------- --------------
Total stockholders' equity 1,740,323 2,869,196
-------------- --------------
Total $ 5,658,031 $ 6,829,723
============== ==============
(Continued)
Page 9 of 12
[LOGO]
AMERICAN TOWER
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS Twelve Months Ended
(In thousands) December 31,
----------------------------------
2002 2001
--------------- --------------
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
Net loss $ (1,141,879) $ (450,094)
Cumulative effect of change in accounting principle (non-cash) 562,618
Other non-cash items reflected in statement of operations 660,136 494,106
Decrease (increase) in assets 55,996 (61,255)
(Decrease) increase in liabilities (31,722) 43,313
------------ ------------
Cash provided by operating activities 105,149 26,070
------------ ------------
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Payments for purchase of property and equipment and construction activities (180,497) (568,158)
Payments for acquisitions, net of cash acquired (56,361) (812,782)
Proceeds from sale of businesses and other long-term assets 109,353
Deposits, investments and other long-term assets 12,248 (64,363)
------------ ------------
Cash used for investing activities (115,257) (1,445,303)
------------ ------------
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Borrowings under credit facilities 160,000 181,500
Proceeds from senior notes offering 1,000,000
Repayment of credit facilities and other long-term obligations (148,270) (81,133)
Net proceeds from equity offerings, stock options and employee stock purchase plan 1,305 366,671
Deferred financing costs, restricted cash and other 88,407 (93,885)
------------ ------------
Cash provided by financing activities 101,442 1,373,153
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 91,334 (46,080)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 35,958 82,038
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 127,292 $ 35,958
============ ============
CASH PAID FOR INCOME TAXES $ 1,640 $ 3,349
============ ============
CASH PAID FOR INTEREST $ 251,705 $ 243,856
============ ============
(Continued)
Page 10 of 12
[LOGO]
AMERICAN TOWER
UNAUDITED SUPPLEMENTAL INFORMATION
SELECTED CAPITAL EXPENDITURE DETAIL Three Months Ended
(in millions) December 31, 2002
------------------------
CAPITAL EXPENDITURES INCURRED
Wireless tower construction $ 7
Broadcast tower construction 5
Maintenance/Improvements 3
Land 0
Services 0
Verestar 5
Corporate 1
------------------------
Total Capital Expenditures $ 21
------------------------
SELECTED BALANCE SHEET DETAIL December 31,
(in millions) 2002
------------------------
LIQUIDITY
Total cash balance $ 127
Available borrowings/(a)/ 246
------------------------
Total Liquidity $ 373
------------------------
LONG TERM OBLIGATIONS BREAKOUT, INCLUDING CURRENT PORTION
Revolving line of credit $ 160
Term loan A 850
Term loan B 500
9.375% Senior notes, due 2009 1,000
6.25% Convertible bond, due 2009 213
2.25% Discounted convertible bond, due 2009 211
5.00% Convertible bond, due 2010 450
Capital leases 47
Other 34
------------------------
Total Long Term Obligations $ 3,465
------------------------
SHARES OUTSTANDING 195.8
SELECTED TOWER PORTFOLIO DETAIL Three Months Ended
December 31, 2002
------------------------
BBE per tower/(b)/ 2.0
BBE lease-up/(b)/ 0.22
Same tower revenue growth/(c)/ 15%
Same tower cash flow growth/(c)/ 22%
--------------------------------------------------------------------------------
ACTIVE TOWER COUNTS Owned Wireless Towers Broadcast Towers Managed or Lease/Sublease Total
--------------------------------------------------------------------------------
Beginning Balance, 10/1/02 13,154 334 930 14,418
New Construction 56 4 60
Acquisitions 193 51 244
Reductions (147) (2) (149)
--------------------------------------------------------------------------------
Ending Balance, 12/31/02 13,256 336 981 14,573
--------------------------------------------------------------------------------
/(a)/ Available borrowings under Revolving Loan based on most restrictive
covenant as amended as of 2/24/03, adjusted for outstanding letters of
credit of $19 million.
/(b)/ BBE (Broadband Equivalent, assumes $1,500 in monthly rent) per tower
includes U.S., Mexico and Brazil Owned Wireless Towers.
/(c)/ Same tower revenue and cash flow growth include U.S. and Mexico owned
wireless and broadcast towers.
(Continued)
Page 11 of 12
[LOGO]
AMERICAN TOWER
AMERICAN TOWER CORPORATION FINANCIAL SUMMARY
February 24, 2003
(In Millions, Except Per Share Data)
ANNOUNCED STRATEGIC TRANSACTIONS/(1)/ Date
Announced Status Proceeds
--------- ------ --------
Sources of Proceeds
- -------------------
MTS Wireless Components /(2)/ 08-Aug-02 Closed $ 30
Corporate Headquarters Building /(3)/ 08-Nov-02 Closed 68
Remaining Service Components Business 10-Dec-02 Closed 41
12/10/02 Announced Real Estate Asset Sale 10-Dec-02 Signed 11
Maritime Telecommunications Network (MTN)/(4)/ 06-Jan-03 Closed 26
Non-Core Tower and Real Estate Asset Sales Various Closed 25
----------
Total $201
Uses of Proceeds
- ----------------
NII Holdings, Inc. Tower Acquisition 10-Dec-02 Pending /(5)/ $100
Retirement of Corporate Headquarters Building Debt /(3)/ 08-Nov-02 Closed 38
Debt prepayment from MTN proceeds 06-Jan-03 Closed 25
----------
Total $163
----------
Incremental Available Cash and Cash Flow from Announced Transactions $ 38
- --------------------------------------------------------------------
==========
(1) Excludes approximately $50 million of additional non-core asset sales that
the Company expects by mid-2003.
(2) Approximately $23 million of the $30 million of proceeds from the MTS
Wireless Components transaction have been received to date. The remaining
$7 million are in notes receivable expected to be received in 2003.
(3) Elimination of $38 million real estate debt and $30 million cash proceeds.
(4) Proceeds for the remainder of Verestar are estimated at up to $20 million
and would also include the elimination of $120 million of capital leases.
Pending the terms of the final disposition, the Company may have financial
guarantees of up to $12 million for Verestar contractual obligations.
(5) $50 million of the $100 million of NII Holdings tower had been closed as of
February 24, 2003.
(Continued)
Page 12 of 12
[LOGO]
AMERICAN TOWER
AMERICAN TOWER CORPORATION FINANCIAL SUMMARY
February 24, 2003
(In Millions, Except Per Share Data)
QUARTERLY AND FULL YEAR 2003 OUTLOOK
The following estimates are based on a number of assumptions that management
believes to be reasonable, and reflect the Company's expectations as of February
24, 2003. Company outlook is based on assumptions about the number of new builds
constructed, tenant lease-up and the timing of tower closings. Please refer to
the cautionary language included in this press release when considering this
information. The Company undertakes no obligation to update this information.
"Cash flow" is defined as segment revenues less segment operating expenses
before depreciation and amortization, development expense, restructuring
expense, corporate general and administrative expense, and impairments and net
loss on sale of long-lived assets. Segment cash flow for rental and management
includes interest income TV Azteca, net.
"EBITDA" is defined as operating loss before depreciation and amortization and
impairments and net loss on sale of assets plus interest income, TV Azteca, net.
Q1 2003 Q2 2003 Q3 2003 Q4 2003
Outlook Ranges Outlook Ranges Outlook Ranges Outlook Ranges
-------------------- ------------------ -------------------- --------------------
Rental and Management Revenue $ 146 to $ 150 $ 152 to $ 157 $ 158 to $ 163 $ 164 to $ 170
Rental and Management Cash Flow 93 to 96 97 to 103 102 to 107 108 to 114
(Includes Interest Income, TV Azteca, net)
Services Revenue 30 to 40 40 to 50 45 to 55 45 to 55
Services Cash Flow 2 to 4 3 to 5 4 to 6 4 to 6
Total Revenue 176 to 190 192 to 207 203 to 218 209 to 225
Total Cash Flow 95 to 100 100 to 108 106 to 113 112 to 120
Corporate Expense 6 to 6 6 to 5 6 to 5 6 to 5
Development Expense 1 to 1 1 to 1 1 to 1 1 to 1
EBITDA 88 to 93 93 to 102 99 to 107 105 to 114
Depreciation and Amortization 83 to 81 84 to 82 84 to 82 84 to 82
Interest Expense 75 to 73 75 to 73 74 to 72 70 to 68
Basic and Diluted Net Loss Per Common Share $ (0.33) to $ (0.30) $(0.29) to $(0.24) $(0.26) to $ (0.22) $(0.25) to $(0.20)
Before Discontinued Operations
Interest Exp., excluding accretion and deferred
financing $ 62 to $ 60 $ 58 to $ 56 $ 56 to $ 54 $ 52 to $ 50
Capital Expenditures Incurred 13 to 20 13 to 19 12 to 18 12 to 18
Full Year 2003
Outlook Ranges
------------------------
Rental and Management Revenue $ 620 to $ 640
Rental and Management Cash Flow 400 to 420
(Includes Interest Income, TV Azteca, net)
Services Revenue 160 to 200
Services Cash Flow 13 to 21
Total Revenue 780 to 840
Total Cash Flow 413 to 441
Corporate Expense 24 to 21
Development Expense 4 to 4
EBITDA 385 to 416
Depreciation and Amortization 335 to 327
Interest Expense 294 to 286
Basic and Diluted Net Loss Per Common Share $ (1.13) to $ (0.96)
Before Discontinued Operations
Interest Exp., excluding accretion and deferred financing $ 228 to $ 220
Capital Expenditures Incurred 50 to 75
Acquisition spending for the year 2003 is expected to be approximately $74
million, all of which is for the NII Holdings transaction, and $24 million of
which has been spent as of February 24, 2003.
About EBITDA and Segment Cash Flow
We do not consider EBITDA and segment cash flow as substitutes for other
measures of profitability or liquidity determined in accordance with generally
accepted accounting principles (GAAP) in the United States, such as operating
income or cash flows from operating activities. EBITDA and segment cash flow are
not calculated in accordance with GAAP. However, we have included them in this
release as additional information because they are commonly used in the
communications site industry as a measure of a company's operating performance.
More specifically, we believe they can assist in comparing company performances
on a consistent basis without regard to depreciation and amortization. Our
concern is that depreciation and amortization can vary significantly among
companies depending on accounting methods, particularly where acquisitions or
non-operating factors including historical cost bases are involved. However, our
measure of EBITDA and segment cash flow may not be comparable to similarly
titled measures of other companies.
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