Independent owner, operator and developer of broadcast and wireless communications sites American Tower Corporation has reported that its total revenues increased 8% to $408.3 million for the fourth ended December 31, 2008. Rental and management segment revenues increased 6.4% to $394.3 million during the quarter.
Rental and management segment gross margin increased 8.2% to $307.4 million, and network development services segment revenue and gross margin increased to $14 million and $5.9 million, respectively.
Operating income was $152.7 million and net income was $85.8 million, which includes approximately $30.3 million pre-tax and $18.6 million, net of tax, respectively, related to the company’s previously disclosed change in the estimated useful lives of its towers and certain related intangible assets. Net income per basic and diluted common share was $0.22 and $0.21, respectively.
Total selling, general, administrative, and development expense was $45 million. Adjusted EBITDA increased 10.9% to $280 million, and adjusted EBITDA Margin was 69%. Adjusted EBITDA growth of 10.9% includes a negative impact to growth of approximately 1.6% as a result of unfavorable fluctuations in foreign currency exchange rates and a negative impact of 2.5% from straight-line revenue and expense recognition.
During the quarter ended December 31, 2008, the company repurchased a total of approximately 2.8 million shares of its Class A common stock for approximately $79.4 million. As of February 13, 2009, the company had repurchased approximately $534.1 million under its $1.5 billion share repurchase program announced in March 2008, which includes the repurchase of approximately 28,000 shares of its Class A common stock for approximately $0.8 million, during the period January 1, 2009 to February 13, 2009.
The company estimates that actual rental and management segment revenue and adjusted EBITDA for the full year 2009 would be negatively impacted by approximately $31 million and $16 million, respectively.
Jim Taiclet, American Tower’s Chief Executive Officer, said: “American Tower’s strong financial results in 2008 showcased our position as the premier provider of infrastructure to the wireless industry and confirmed a number of beneficial trends within our customer base, industry sector, and company that we believe will continue through 2009 and beyond.”
