American Tower Corporation Reports Fourth Quarter and Full Year 2012 Financial Results

  American Tower Corporation Reports Fourth Quarter and Full Year 2012
  Financial Results

CONSOLIDATED HIGHLIGHTS

Fourth Quarter 2012

  *Total revenue increased 17.6% to $768.4 million
  *Operating income increased 12.7% to $279.2 million
  *Cash provided by operating activities decreased 5.7% to $297.8 million

Full Year 2012

  *Total revenue increased 17.7% to $2,876.0 million
  *Operating income increased 21.7% to $1,119.7 million
  *Cash provided by operating activities increased 21.3% to $1,414.4 million

SEGMENT HIGHLIGHTS

Fourth Quarter 2012

  *Domestic rental and management segment revenue increased 7.5% to $499.9
    million
  *International rental and management segment revenue increased 36.3% to
    $239.8 million
  *Network development services segment revenue was $28.7 million

Full Year 2012

  *Domestic rental and management segment revenue increased 11.3% to $1,940.7
    million
  *International rental and management segment revenue increased 34.4% to
    $862.8 million
  *Network development services segment revenue was $72.5 million

Business Wire

BOSTON -- February 26, 2013

American Tower Corporation (NYSE: AMT)  today reported financial results for
the fourth quarter and full year ended December 31, 2012.

Jim Taiclet, American Tower’s Chief Executive Officer stated, “2012
represented another strong year of performance, as we remained focused on two
primary aspirations: strengthening our core U.S. business by securing extended
customer agreements to enable robust, sustained organic growth; and leveraging
the rapid global adoption of wireless services to drive our international
market expansion. As a result, we were able to achieve Core Growth in rental
revenue and Adjusted EBITDA of over 21% and Core Growth in AFFO of nearly 19%.

"Our Outlook for 2013 reflects continued mid-teen Core Growth in rental
revenue, Adjusted EBITDA and AFFO, and we are focused on pursuing our
disciplined global investment strategy to sustain these levels of growth into
the future."

FOURTH QUARTER 2012 OPERATING RESULTS OVERVIEW

American Tower generated the following operating results for the quarter ended
December 31, 2012 (unless otherwise indicated, all comparative information is
presented against the quarter ended December 31, 2011).

Total revenue increased 17.6% to $768.4 million and total rental and
management revenue increased 15.4% to $739.7 million. Total rental and
management revenue Core Growth was approximately 19.3%. Please refer to the
selected statement of operations detail on page 14, which highlights the items
affecting all Core Growth percentages for the quarter ended December 31, 2012.

Total rental and management Gross Margin increased 15.6% to $562.9 million,
which includes the impact of a one-time favorable expense item attributable to
the domestic rental and management segment, as further described below. Total
selling, general, administrative and development expense was $89.4 million,
including $11.9 million of stock-based compensation expense. Adjusted EBITDA
increased 16.8% to $500.6 million, Core Growth in Adjusted EBITDA was 19.6%,
and Adjusted EBITDA Margin was 65%.

Adjusted Funds From Operations (AFFO) increased 4.7% to $289.7 million, which
includes the negative impact of two non-recurring international tax payments
of approximately $15.5 million in aggregate and new market start-up capital
expenditures of approximately $5.6 million. Core Growth in AFFO was
approximately 11.6%, and AFFO per Share increased 2.9% to $0.72.

Operating income increased 12.7% to $279.2 million, while net income
attributable to American Tower Corporation decreased 33.9% to $135.7 million.
The decrease was primarily attributable to a one-time positive net impact of
approximately $121.0 million during the fourth quarter of 2011, as a result of
the reversal of certain deferred tax assets and liabilities resulting from the
Company’s conversion to a real estate investment trust (REIT). In addition,
contributing to the decrease was the negative impact of approximately $39.4
million that the Company recorded during the fourth quarter of 2012 in
relation to valuation allowances attributable to net operating losses
generated by its international rental and management segment. Net income
attributable to American Tower Corporation per both basic and diluted common
share decreased 34.6% to $0.34.

Cash provided by operating activities decreased 5.7% to $297.8 million.

Segment Results

Domestic Rental and Management Segment – Domestic rental and management
segment revenue increased 7.5% to $499.9 million, which represented 65% of
total revenues. Domestic rental and management segment Gross Margin increased
11.3% to $415.5 million, which includes the favorable one-time impact of
approximately $5.7 million related to land rent expense. Domestic rental and
management segment Operating Profit increased 10.7% to $390.5 million, and
domestic rental and management segment Operating Profit Margin was 78%.

International Rental and Management Segment – International rental and
management segment revenue increased 36.3% to $239.8 million, which
represented 31% of total revenues. International rental and management segment
Gross Margin increased 29.7% to $147.4 million, while international rental and
management segment Operating Profit increased 30.5% to $120.2 million. 
International rental and management segment Operating Profit Margin was 50%
(70%, excluding the impact of $67.9 million of pass-through revenues).

Network Development Services Segment – Network development services segment
revenue was $28.7 million, which represented 4% of total revenues. Network
development services segment Gross Margin was $15.3 million, and network
development services segment Operating Profit was $12.9 million. Network
development services segment Operating Profit Margin was 45%.

FULL YEAR 2012 OPERATING RESULTS OVERVIEW

American Tower generated the following operating results for the full year
ended December 31, 2012 (unless otherwise indicated, all comparative
information is presented against the full year ended December 31, 2011).

Total revenue increased 17.7% to $2,876.0 million and total rental and
management revenue increased 17.5% to $2,803.5 million. Total rental and
management revenue Core Growth was approximately 21.1%. Please refer to the
selected statement of operations detail on page 14, which highlights the items
affecting all Core Growth percentages for the year ended December 31, 2012.

Total rental and management Gross Margin increased 17.7% to $2,131.9 million.
Total selling, general, administrative and development expense was $327.3
million, including $50.2 million of stock-based compensation expense. Adjusted
EBITDA increased 18.6% to $1,892.4 million, Core Growth in Adjusted EBITDA was
21.3%, and the Adjusted EBITDA Margin was 66%.

AFFO increased 13.5% to $1,198.1 million, Core Growth in AFFO was
approximately 18.8%, and AFFO per Share increased 13.6% to $3.00.

Operating income increased 21.7% to $1,119.7 million, while net income
attributable to American Tower Corporation increased 60.7% to $637.3 million.
Net income attributable to American Tower Corporation per basic common share
increased 61.0% to $1.61, and net income attributable to American Tower
Corporation per diluted common share increased 61.6% to $1.60.

Cash provided by operating activities increased 21.3% to $1,414.4 million.

Segment Results

Domestic Rental and Management Segment – Domestic rental and management
segment revenue increased 11.3% to $1,940.7 million, which represented 67% of
total revenues. Domestic rental and management segment Gross Margin increased
13.8% to $1,583.1 million, while domestic rental and management segment
Operating Profit increased 14.0% to $1,497.5 million. Domestic rental and
management segment Operating Profit Margin was 77%.

International Rental and Management Segment – International rental and
management segment revenue increased 34.4% to $862.8 million, which
represented 30% of total revenues. International rental and management segment
Gross Margin increased 30.5% to $548.7 million, while international rental and
management segment Operating Profit increased 33.9% to $453.1 million.
International rental and management segment Operating Profit Margin was 53%
(72%, excluding the impact of $229.1 million of pass-through revenues).

Network Development Services Segment – Network development services segment
revenue was $72.5 million, which represented 3% of total revenues. Network
development services segment Gross Margin was $37.6 million, and network
development services segment Operating Profit was $30.9 million. Network
development services segment Operating Profit Margin was 43%.

Please refer to “Non-GAAP and Defined Financial Measures” on pages 6 and 7 for
definitions of Gross Margin, Operating Profit, Operating Profit Margin,
Adjusted EBITDA, Adjusted EBITDA Margin, Funds From Operations, Adjusted Funds
From Operations, Adjusted Funds From Operations per Share, Core Growth and Net
Leverage Ratio. For additional financial information, including
reconciliations to GAAP measures, please refer to the unaudited selected
financial information on pages 12 through 16.

INVESTING OVERVIEW

Distributions – On December 31, 2012, the Company paid its fourth quarter
distribution of $0.24 per share, or a total of approximately $94.8 million, to
stockholders of record at the close of business on December 17, 2012.

During the twelve months ended December 31, 2012, the Company paid an
aggregate of $0.90 per share in distributions, or a total of approximately
$355.6 million, to its stockholders. Subject to the discretion of the
Company’s Board of Directors, the Company expects to continue paying regular
distributions, the amount and timing of which will be determined by the Board.

Cash Paid for Capital Expenditures – During the fourth quarter of 2012,  total
capital expenditures of $191.0 million included $86.9 million for
discretionary capital projects, including spending to complete the
construction of 87 towers and the installation of 6 distributed antenna system
networks and 304 shared generators domestically and the construction of 432
towers and the installation of 2 distributed antenna system networks
internationally; $33.9 million to purchase land under the Company’s
communications sites; $28.0 million for the redevelopment of existing
communications sites to accommodate new tenant equipment; and $42.3 million
for capital improvements and corporate capital expenditures.

During the twelve months ended December 31, 2012,  total capital expenditures
of $568.0 million included $279.0 million for discretionary capital projects,
including spending to complete the construction of 235 towers and the
installation of 15 distributed antenna system networks and 603 shared
generators domestically and the construction of 2,109 towers and the
installation of 2 distributed antenna system networks internationally; $82.3
million to purchase land under the Company’s communications sites; $86.7
million for the redevelopment of existing communications sites to accommodate
new tenant equipment; and $120.0 million for capital improvements and
corporate capital expenditures.

Cash Paid for Acquisitions – During the fourth quarter of 2012, the Company
spent $1,175.2 million for the purchase of 627 domestic towers, 24 domestic
property interests under third-party communications sites and 2,263
international towers. The international towers consisted of those acquired
pursuant to previously announced agreements, including 2,031 towers in
Germany, 190 towers in Mexico and 42 towers in Colombia. Subsequent to the end
of the fourth quarter of 2012, the Company acquired an additional 883 towers
in Mexico for an aggregate purchase price of $248.5 million, subject to
post-closing adjustments and value added tax.

During the twelve months ended December 31, 2012, the Company spent $1,998.0
million for the purchase of 713 domestic towers, 24 domestic property
interests under third-party communications sites, 5,733 international towers
and amounts due for acquisitions completed in December of 2011.

Stock Repurchase Program – During the fourth quarter of 2012, the Company
repurchased a total of approximately 0.6 million shares of its common stock
for approximately $46.0 million pursuant to its stock repurchase program.
Between January 1, 2013 and January 21, 2013, the Company repurchased an
additional 15,790 shares of its common stock for an aggregate of $1.2 million.

During the twelve months ended December 31, 2012, the Company repurchased a
total of approximately 0.9 million shares of its common stock for
approximately $62.7 million pursuant to its stock repurchase program.

FINANCING UPDATE

Leverage – For the quarter ended December 31, 2012, the Company’s net leverage
ratio was approximately 4.2x net debt (total debt less cash and cash
equivalents) to fourth quarter 2012 annualized Adjusted EBITDA.

Liquidity – As of December 31, 2012, the Company had approximately $1.1
billion of total liquidity, comprised of approximately $368.6 million in cash
and cash equivalents, plus the ability to borrow an aggregate of approximately
$734.6 million under its two revolving credit facilities, net of any
outstanding letters of credit.

Subsequent to the end of the fourth quarter of 2012, the Company increased its
liquidity by approximately $1.0 billion through the issuance of 3.50% senior
unsecured notes due 2023, the net proceeds of which were used to repay
borrowings under the Company’s revolving credit facilities.

FULL YEAR 2013 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 26, 2013. These estimates include the impact of the Company’s
acquisition of 883 towers in Mexico, which closed subsequent to the end of the
fourth quarter of 2012 and the construction of between 2,250 to 2,750 new
sites. Actual results may differ materially from these estimates as a result
of various factors, and the Company refers you to the cautionary language
regarding “forward-looking” statements included in this press release when
considering this information.

The Company’s outlook is based on the following average foreign currency
exchange rates to 1.00 U.S. Dollar for the full year 2013: (a) 2.00 Brazilian
Reais; (b) 475.00 Chilean Pesos; (c) 1,800.00 Colombian Pesos; (d) 0.78 Euros;
(e) 1.90 Ghanaian Cedi; (f) 53.00 Indian Rupees; (g) 12.50 Mexican Pesos; (h)
2.55 Peruvian Soles; (i) 8.70 South African Rand; and (j) 2,650.00 Ugandan
Schillings.

($ in millions)              Full Year 2013        Midpoint  Midpoint Core
                                                      Growth     Growth
Total rental and               $3,160  to  $3,210   13.6%      16.5%
management revenue
Adjusted EBITDA ^(1)           $2,080   to   $2,130   11.2%      14.8%
Adjusted Funds From            $1,360   to   $1,410   15.6%      16.3%
Operations^(1)
Net Income                     $765     to   $840     35.1%      N/A
________
(1) See “Non-GAAP and Defined Financial Measures” below.

The Company’s outlook for total rental and management revenue reflects the
following at the midpoint: (1) domestic rental and management segment revenue
of $2,080 million; and (2) international rental and management segment revenue
of $1,105 million, which includes approximately $285 million of pass-through
revenue.

The calculation of
midpoint Core Growth is as      Total Rental
follows:                       and              Adjusted        AFFO
                                Management       EBITDA
(Totals may not add due to      Revenue
rounding.)
Outlook midpoint Core           16.5%            14.8%            16.3%
Growth
Estimated impact of
fluctuations in foreign         (0.2)%           (0.0)%           0.0%
currency exchange rates
Impact of straight-line
revenue and expense             (2.0)%           (2.4)%           -
recognition
Impact of significant           (0.6)%           (1.1)%           (0.8)%
one-time items(1)
Outlook midpoint growth         13.6%            11.2%            15.6%
___
(1) Attributable to 2012 one-time items and new market start-up capital
expenditures of approximately $20 million in 2013.
                                                 
Outlook for Capital Expenditures:

($ in millions)                                  Full Year 2013

(Totals may not add due to rounding.)
Discretionary capital projects^(1)               $240      to         $300
Ground lease purchases                           85         to          105
Redevelopment                                    95         to          105
Capital improvement^(2)                          105        to          115
Corporate                                        25         -           25
Total                                            $550       to          $650
___
(1) Includes the construction of approximately 2,250 to 2,750 new
communications sites.
(2) Includes new market start-up capital expenditures of approximately $20
million and spending related to a lighting system upgrade in the U.S of
approximately $15 million.

Reconciliations of Outlook for Net Income to Adjusted EBITDA:
($ in millions)
                                                         Full Year 2013
(Totals may not add due to rounding.)
Net income                                                $765    to  $840
Interest expense                                          460      to   450
Depreciation, amortization and accretion                  755      to   725
Income tax provision                                      63       to   73
Stock-based compensation expense                          65       -    65
Other, including other operating expenses, interest
income, loss on retirement of long-term obligations,      (28)     to   (23)
(income) loss on equity method investments and other
(income) expense
Adjusted EBITDA                                           $2,080   to   $2,130

Reconciliations of Outlook for Net Income to Adjusted Funds From Operations:
($ in millions)
                                                          Full Year 2013
(Totals may not add due to rounding.)
Net income                                                $765     to   $840
Straight-line revenue                                     (135)    -    (135)
Straight-line expense                                     31       -    31
Depreciation, amortization and accretion                  755      to   725
Stock-based compensation expense                          65       -    65
Non-cash portion of tax provision                         5        to   10
Other, including other operating expenses, interest
expense, amortization of deferred financing costs, debt
discounts and capitalized interest, loss on retirement    4        to   14
of long-term obligations, other (income) expense and
non-cash interest related to joint venture shareholder
loans
Capital improvement capital expenditures                  (105)    to   (115)
Corporate capital expenditures                            (25)     -    (25)
Adjusted Funds From Operations                            $1,360   to   $1,410

Conference Call Information

American Tower will host a conference call today at 8:30 a.m. ET to discuss
its financial results for the fourth quarter and full year ended December 31,
2012 and its outlook for 2013. Supplemental materials for the call will be
available on the Company’s website, www.americantower.com. The conference call
dial-in numbers are as follows:

U.S./Canada dial-in: (866) 740-9153

International dial-in: (706) 645-9644

Passcode: 94770658

When available, a replay of the call can be accessed until 11:59 p.m. ET on
March 12, 2013. The replay dial-in numbers are as follows:

U.S./Canada dial-in: (855) 859-2056

International dial-in: (404) 537-3406

Passcode: 94770658

American Tower will also sponsor a live simulcast and replay of the call on
its website, www.americantower.com.

About American Tower

American Tower is a leading independent owner, operator and developer of
wireless and broadcast communications real estate. American Tower currently
owns and operates over 54,000 communications sites in the United States,
Brazil, Chile, Colombia, Germany, Ghana, India, Mexico, Peru, South Africa and
Uganda. For more information about American Tower, please visit
www.americantower.com.

Non-GAAP and Defined Financial Measures

In addition to the results prepared in accordance with generally accepted
accounting principles in the United States (GAAP) provided throughout this
press release, the Company has presented the following non-GAAP and defined
financial measures: Gross Margin, Operating Profit, Operating Profit Margin,
Adjusted EBITDA, Adjusted EBITDA Margin, Funds From Operations, Adjusted Funds
From Operations, Adjusted Funds From Operations per Share, Core Growth and Net
Leverage Ratio.

The Company defines Gross Margin as revenues less operating expenses,
excluding stock-based compensation expense. The Company defines Operating
Profit as Gross Margin less selling, general, administrative and development
expense, excluding stock-based compensation expense and corporate expenses.
For reporting purposes, the international rental and management segment
Operating Profit and Gross Margin also include interest income, TV Azteca,
net. These measures of Gross Margin and Operating Profit are also before
interest income, interest expense, loss on retirement of long-term
obligations, other income (expense), net income attributable to
non-controlling interest, income (loss) on equity method investments, income
taxes and discontinued operations. The Company defines Operating Profit Margin
as the percentage that results from dividing Operating Profit by revenue. The
Company defines Adjusted EBITDA as net income before income (loss) from
discontinued operations, net, income (loss) from equity method investments,
income tax provision (benefit), other (income) expense, loss on retirement of
long-term obligations, interest expense, interest income, other operating
expenses, depreciation, amortization and accretion and stock-based
compensation expense. The Company defines Adjusted EBITDA Margin as the
percentage that results from dividing Adjusted EBITDA by total revenue. The
Company defines Funds From Operations as net income before real estate related
depreciation, amortization and accretion. The Company defines Adjusted Funds
From Operations as Funds From Operations before straight-line revenue and
expense, stock-based compensation expense, non-cash portion of tax provision,
non-real estate related depreciation, amortization and accretion, amortization
of deferred financing costs, debt discounts and capitalized interest, other
(income) expense, loss on retirement of long-term obligations, other operating
(income) expense, less cash payments related to capital improvements and cash
payments related to corporate capital expenditures. The Company defines
Adjusted Funds From Operations per Share as Adjusted Funds From Operations
divided by the diluted weighted average common shares outstanding. Funds From
Operations for the three and twelve months ended December 31, 2011 are
presented on a pro forma basis and reflect adjustments for income tax
provision as if the REIT conversion had occurred on January 1, 2011. The
Company defines Core Growth in total rental and management revenue, Adjusted
EBITDA and Adjusted Funds From Operations as the increase or decrease,
expressed as a percentage, resulting from a comparison of financial results
for a current period with corresponding financial results for the
corresponding period in a prior year, in each case, excluding the impact of
straight-line revenue and expense recognition, foreign currency exchange rate
fluctuations and significant one-time items. The Company defines Net Leverage
Ratio as net debt (total debt, less cash and cash equivalents) divided by last
quarter annualized Adjusted EBITDA. These measures are not intended to replace
financial performance measures determined in accordance with GAAP. Rather,
they are presented as additional information because management believes they
are useful indicators of the current financial performance of the Company’s
core businesses. The Company believes that these measures can assist in
comparing company performances on a consistent basis irrespective of
depreciation and amortization or capital structure. 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, the
Company’s measures of Gross Margin, Operating Profit, Operating Profit Margin,
Adjusted EBITDA, Adjusted EBITDA Margin, Funds From Operations, Adjusted Funds
From Operations, Adjusted Funds From Operations per Share, Core Growth and Net
Leverage Ratio may not be comparable to similarly titled measures used by
other companies.

Cautionary Language Regarding Forward-Looking Statements

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. Examples of these statements include, but are not
limited to statements regarding our full year 2013 outlook, foreign currency
exchange rates and our expectation regarding the declaration of regular
distributions. Actual results may differ materially from those indicated in
our forward-looking statements as a result of various important factors,
including: (1) decrease in demand for our communications sites would
materially and adversely affect our operating results and we cannot control
that demand; (2) new technologies or changes in a tenant’s business model
could make our tower leasing business less desirable and result in decreasing
revenues; (3) our business is subject to government regulations and changes in
current or future laws or regulations could restrict our ability to operate
our business as we currently do; (4) if our tenants consolidate, merge or
share site infrastructure with each other to a significant degree, our growth,
revenue and ability to generate positive cash flows could be materially and
adversely affected; (5) we could suffer adverse tax or other financial
consequences if taxing authorities do not agree with our tax positions; (6) a
substantial portion of our revenue is derived from a small number of tenants,
and we are sensitive to changes in the creditworthiness and financial strength
of our tenants; (7) our foreign operations are subject to economic, political
and other risks that could materially and adversely affect our revenues or
financial position, including risks associated with fluctuations in foreign
currency exchange rates; (8) our expansion initiatives involve a number of
risks and uncertainties that could adversely affect our operating results,
disrupt our operations or expose us to additional risk if we are not able to
successfully integrate operations, assets and personnel; (9) if we are unable
to protect our rights to the land under our towers, it could adversely affect
our business and operating results; (10) increasing competition in the tower
industry may create pricing pressures that may materially and adversely affect
us; (11) if we are unable or choose not to exercise our rights to purchase
towers that are subject to lease and sublease agreements at the end of the
applicable period, our cash flows derived from such towers would be
eliminated; (12) if we fail to qualify as a REIT or fail to remain qualified
as a REIT, we would be subject to tax at corporate income tax rates, which
would substantially reduce funds otherwise available; (13) we may be limited
in our ability to fund required distributions using cash generated through our
TRSs; (14) complying with REIT requirements may limit our flexibility or cause
us to forego otherwise attractive opportunities; (15) certain of our business
activities may be subject to corporate level income tax and foreign taxes,
which reduce our cash flows, and may have deferred and contingent tax
liabilities; (16) we may need additional financing to fund capital
expenditures, future growth and expansion initiatives and to satisfy our REIT
distribution requirements;(17) our leverage and debt service obligations may
materially and adversely affect us; (18) restrictive covenants in the loan
agreements related to our securitization transaction, the loan agreements for
our credit facilities and the indentures governing our debt securities could
materially and adversely affect our business by limiting flexibility; (19) we
may incur goodwill and other intangible asset impairment charges which could
result in a significant reduction to our earnings; (20) we have limited
experience operating as a REIT, which may adversely affect our financial
condition, results of operations, cash flow and ability to satisfy debt
service obligations; (21) we could have liability under environmental and
occupational safety and health laws; (22) our towers or data centers may be
affected by natural disasters and other unforeseen events for which our
insurance may not provide adequate coverage; and (23) our costs could increase
and our revenues could decrease due to perceived health risks from radio
emissions, especially if these perceived risks are substantiated. For
additional information regarding factors that may cause actual results to
differ materially from those indicated in our forward-looking statements, we
refer you to the information contained in Item 1A of our Form 10-Q for the
nine months ended September 30, 2012. We undertake no obligation to update the
information contained in this press release to reflect subsequently occurring
events or circumstances.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                       
                                             December 31,       December 31,
                                             2012               2011^(1)
ASSETS:
Current assets:
     Cash and cash equivalents               $368,618           $330,191
     Restricted cash                         69,316             42,215
     Short-term investments and              6,018              22,270
     available-for-sale securities
     Accounts receivable, net                136,971            100,610
     Prepaid and other current assets        222,851            250,273
     Deferred income taxes                   25,754             29,596
     Total current assets                    829,528            775,155
Property and equipment, net                  5,789,995          4,981,722
Goodwill                                     2,912,046          2,676,290
Other intangible assets, net                 3,115,053          2,495,053
Deferred income taxes                        213,518            209,031
Deferred rent asset                          776,201            609,529
Notes receivable and other non-current       452,788            495,615
assets
Total                                        $14,089,129        $12,242,395
                                                                
LIABILITIES AND EQUITY:
Current liabilities:
     Accounts payable                        $89,578            $215,931
     Accrued expenses                        286,962            305,538
     Distributions payable                   189                -
     Accrued interest                        71,271             65,729
     Current portion of long-term            60,031             101,816
     obligations
     Unearned revenue                        124,147            92,483
     Total current liabilities               632,178            781,497
Long-term obligations                        8,693,345          7,134,492
Asset retirement obligations                 435,724            344,180
Other non-current liabilities                643,701            572,084
     Total liabilities                       10,404,948         8,832,253
                                                                
COMMITMENTS AND CONTINGENCIES
EQUITY :
Common stock                                 3,959              3,936
Additional paid-in capital                   5,012,124          4,903,800
Distributions in excess of earnings          (1,196,907)        (1,477,899)
Accumulated other comprehensive loss         (183,347)          (142,617)
Treasury stock(2)                            (62,728)           -
     Total American Tower Corporation equity 3,573,101          3,287,220
Noncontrolling interest                      111,080            122,922
     Total equity                            3,684,181          3,410,142
Total                                        $14,089,129        $12,242,395

(1) December 31, 2011 balances have been revised to reflect purchase
accounting measurement period adjustments.
(2) As part of the Company’s reorganization to qualify as a REIT for federal
income tax purposes, effective December 31, 2011, the Company completed the
merger with its predecessor, approved by the Company’s stockholders in
November 2011. At the time of the merger, each share of Class A common stock
of American Tower held in treasury at December 31, 2011 ceased to be
outstanding, and a corresponding adjustment was recorded to additional paid‐in
capital and common stock.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                                                          
                                Three Months Ended     Twelve Months Ended
                                December 31,           December 31,
                                2012        2011       2012         2011
REVENUES:
  Rental and management         $739,684    $640,883   $2,803,490   $2,386,185
  Network development services  28,690      12,316     72,470       57,347
  Total operating revenues      768,374     653,199    2,875,960    2,443,532
OPERATING EXPENSES:
  Costs of operations
  (exclusive of items shown
  separately below):
  Rental and management
  (including stock-based
  compensation expense of $199, 180,561     157,818    686,681      590,272
  $252, $793 and $1,105,
  respectively)
  Network development services
  (including stock-based
  compensation expense $219,    13,645      7,800      35,798       30,684
  $314, $968 and $1,224,
  respectively)
  Depreciation, amortization    178,488     143,615    644,276      555,517
  and accretion
  Selling, general,
  administrative and
  development expense
  (including stock-based        89,410      73,895     327,301      288,824
  compensation expense of
  $11,911, $10,686, $50,222,
  and $45,108 respectively)
  Other operating expenses      27,035      22,333     62,185       58,103
  Total operating expenses      489,139     405,461    1,756,241    1,523,400
OPERATING INCOME                279,235     247,738    1,119,719    920,132
OTHER INCOME (EXPENSE):
  Interest income, TV Azteca,   3,543       3,627      14,258       14,214
  net
  Interest income               1,427       541        7,680        7,378
  Interest expense              (104,043)   (85,119)   (401,665)    (311,854)
  Loss on retirement of         -           -          (398)        -
  long-term obligations
  Other expense (including
  unrealized foreign currency
  losses of $21,483, $29,548,   (18,832)    (7,265)    (38,300)     (122,975)
  $34,330 and $131,053,
  respectively)
  Total other expense           (117,905)   (88,216)   (418,425)    (413,237)
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES
AND
  INCOME ON EQUITY METHOD       161,330     159,522    701,294      506,895
  INVESTMENTS
  Income tax provision          (43,187)    36,901     (107,304)    (125,080)
  Income on equity method       10          11         35           25
  investments
NET INCOME                      $118,153    $196,434   $594,025     $381,840
  Net loss (income)
  attributable to               17,526      8,676      43,258       14,622
  noncontrolling interest
NET INCOME ATTRIBUTABLE TO      $135,679    $205,110   $637,283     $396,462
AMERICAN TOWER CORPORATION
                                                                    
NET INCOME PER COMMON SHARE
AMOUNTS
  Basic net income attributable $0.34       $0.52      $1.61        $1.00
  to American Tower Corporation
  Diluted net income
  attributable to American      $0.34       $0.52      $1.60        $0.99
  Tower Corporation
                                                                    
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
  BASIC                         395,195     393,347    394,772      395,711
  DILUTED                       399,625     397,724    399,287      400,195
                                                                    
DISTRIBUTIONS DECLARED PER      $0.24       $0.35      $0.90        $0.35
SHARE:

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                                              
                                                     Twelve Months Ended
                                                     December 31,
                                                     2012          2011
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                         $594,025      $381,840
  Adjustments to reconcile net income to cash
  provided by operating activities:
  Stock-based compensation expense                   51,983        47,437
  Depreciation, amortization and accretion           644,276       555,517
  Other non-cash items reflected in statements of    130,517       243,648
  operations
  Increase in net deferred rent asset                (130,512)     (113,042)
  (Increase) decrease in restricted cash             (26,500)      11,867
  Decrease (increase) in assets                      40,961        (72,516)
  Increase in liabilities                            109,641       111,191
Cash provided by operating activities                1,414,391     1,165,942
                                                                   
CASH FLOWS FROM INVESTING ACTIVITIES:
  Payments for purchase of property and equipment    (568,048)     (523,015)
  and construction activities
  Payments for acquisitions, net of cash acquired    (1,997,955)   (2,320,673)
  Proceeds from sales of short-term investments,
  available-for-sale securities and other
  long-term assets                                   374,682       69,971
  Payment for short-term investments                 (352,306)     (42,590)
  Deposits, restricted cash and other                (14,758)      25,495
Cash used in investing activities                    (2,558,385)   (2,790,812)
                                                                   
CASH FLOWS FROM FINANCING ACTIVITIES:
  (Repayments of) proceeds from short-term           (55,264)      128,121
  borrowings, net
  Borrowings under credit facilities                 2,582,000     1,005,014
  Proceeds from issuance of senior notes             698,670       499,290
  Proceeds from term loan credit facility            750,000       -
  Proceeds from other long-term borrowings           177,299       212,783
  Repayments of notes payable, credit facilities and (2,658,566)   (395,384)
  capital leases
  Contributions from noncontrolling interest         52,761        140,880
  holders, net
  Purchases of common stock                          (62,728)      (437,402)
  Proceeds from stock options, warrants and stock    55,441        85,642
  purchase plan
  Distributions                                      (355,574)     (137,765)
  Deferred financing costs and other financing       (13,673)      (15,084)
  activities
Cash provided by financing activities                1,170,366     1,086,095
                                                                   
Net effect of changes in foreign currency exchange   12,055        (14,997)
rates on cash and cash equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 38,427        (553,772)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD       330,191       883,963
CASH AND CASH EQUIVALENTS, END OF PERIOD             $368,618      $330,191
                                                                   
CASH PAID FOR INCOME TAXES, NET                      $69,277       $53,909
CASH PAID FOR INTEREST                               $366,458      $274,234

UNAUDITED RESULTS FROM OPERATIONS, BY SEGMENT
(In thousands,
except                                                              
percentages)
                                                                         
Three Months Ended, December 31, 2012
                 Rental and Management                     Network
                                                           Development   Total
                 Domestic     International   Total        Services
Segment revenues $499,865     $239,819        $739,684     $28,690       $768,374
Segment
operating        84,367       95,995          180,362      13,426        193,788
expenses(1)
Interest income, -            3,543           3,543        -             3,543
TV Azteca, net
Segment Gross    415,498      147,367         562,865      15,264        578,129
Margin
Segment selling,
general,
administrative
    and
    development  25,025       27,146          52,171       2,334         54,505
    expense(1)
Segment          $390,473     $120,221        $510,694     $12,930       $523,624
Operating Profit
Segment
Operating Profit 78%          50%             69%          45%           68%
Margin

Three Months Ended, December 31, 2011
                 Rental and Management                     Network
                                                           Development   Total
                 Domestic     International   Total        Services
Segment revenues $464,945     $175,938        $640,883     $12,316       $653,199
Segment
operating        91,602       65,964          157,566      7,486         165,052
expenses(1)
Interest income, -            3,627           3,627        -             3,627
TV Azteca, net
Segment Gross    373,343      113,601         486,944      4,830         491,774
Margin
Segment selling,
general,
administrative
    and
    development  20,513       21,487          42,000       2,734         44,734
    expense(1)
Segment          $352,830     $92,114         $444,944     $2,096        $447,040
Operating Profit
Segment
Operating Profit 76%          52%             69%          17%           68%
Margin
                                                                         
Twelve Months Ended, December 31, 2012
                 Rental and Management                     Network
                                                           Development   Total
                 Domestic     International   Total        Services
Segment revenues $1,940,689   $862,801        $2,803,490   $72,470       $2,875,960
Segment
operating        357,555      328,333         685,888      34,830        720,718
expenses(1)
Interest income, -            14,258          14,258       -             14,258
TV Azteca, net
Segment Gross    1,583,134    548,726         2,131,860    37,640        2,169,500
Margin
Segment selling,
general,
administrative
    and
    development  85,663       95,579          181,242      6,744         187,986
    expense(1)
Segment          $1,497,471   $453,147        $1,950,618   $30,896       $1,981,514
Operating Profit
Segment
Operating Profit 77%          53%             70%          43%           69%
Margin

Twelve Months Ended, December 31, 2011
                 Rental and Management                     Network
                                                           Development   Total
                 Domestic     International   Total        Services
Segment revenues $1,744,260   $641,925        $2,386,185   $57,347       $2,443,532
Segment
operating        353,458      235,709         589,167      29,460        618,627
expenses(1)
Interest income, -            14,214          14,214       -             14,214
TV Azteca, net
Segment Gross    1,390,802    420,430         1,811,232    27,887        1,839,119
Margin
Segment selling,
general,
administrative
    and
    development  77,041       82,106          159,147      7,864         167,011
    expense(1)
Segment          $1,313,761   $338,324        $1,652,085   $20,023       $1,672,108
Operating Profit
Segment
Operating Profit 75%          53%             69%          35%           68%
Margin

    Excludes
(1) stock-based
    compensation
    expense.

UNAUDITED SELECTED FINANCIAL INFORMATION                    
(In thousands, except where noted. Totals may not add due
to rounding.)
                                   
Selected Balance Sheet Detail:
                                                                 December 31,
                                                                 2012
Long-term obligations summary,               December 31,        Pro Forma (1)
including current portion                    2012
2011 Credit Facility                         $265,000            $-
2012 Credit Facility                         992,000             322,000
2012 Term Loan                               750,000             750,000
4.625% Senior Notes due 2015                 599,638             599,638
7.000% Senior Notes due 2017                 500,000             500,000
4.500% Senior Notes due 2018                 999,414             999,414
7.250% Senior Notes due 2019                 296,272             296,272
5.050% Senior Notes due 2020                 699,333             699,333
5.900% Senior Notes due 2021                 499,356             499,356
4.700% Senior Notes due 2022                 698,760             698,760
3.500% Senior Notes due 2023                 -                   991,850
Total Unsecured at American Tower            $6,299,773          $6,356,624
Corporation
Commercial Mortgage Pass-Through             1,750,000           1,750,000
Certificates, Series 2007-1
Unison Notes (2)                             207,188             207,188
South African Facility (3)                   98,456              98,456
Colombian long-term credit                   76,347              76,347
facility (3)
Colombian bridge loans (3)                   53,169              53,169
Shareholder loans (4)                        211,150             211,150
Capital leases                               57,293              57,293
Total Secured or Subsidiary Debt             $2,453,603          $2,453,603
Total debt                                   $8,753,376          $8,810,227
Cash and cash equivalents                    368,618
Net debt (total debt less cash and           $8,384,758
cash equivalents)

        Pro Forma as of February 26, 2013 for: (a) the registered public
        offering of $1.0 billion aggregate principal amount of senior
(1)     unsecured notes and associated repayment of certain indebtedness under
        the 2011 and 2012 Credit Facilities; and (b) the aggregate borrowing
        of an additional $49 million under the 2012 Credit Facility.
        The Unison Notes are secured debt and were assumed as a result of the
(2)     acquisition of certain legal entities holding a portfolio of property
        interests from Unison Holdings LLC and Unison Site Management II,
        L.L.C.
(3)     Denominated in local currency.
        Denominated in USD, reflects balances attributable to minority
(4)     shareholder loans in the Company’s joint ventures in Colombia, Ghana
        and Uganda.
                                                            
                                                            Three Months Ended
Calculation of Net Leverage Ratio                           December 31, 2012
($ in thousands)
Total debt                                                  $8,753,376
Cash and cash equivalents                                   368,618
Numerator: net debt (total debt less cash and cash          $8,384,758
equivalents)
                                                            
Adjusted EBITDA                                             $500,630
Denominator: annualized Adjusted EBITDA                     2,002,520
Net leverage ratio                                          4.2x

UNAUDITED SELECTED FINANCIAL INFORMATION            
(In thousands, except where noted. Totals may not add due to rounding.)
                                                         
                                                Three Months       Twelve
                                                Ended              Months
                                                                   Ended
Share count rollforward: (in                   December           December
millions of shares)                             31,2012            31,2012
Total common shares, beginning of period        395.4              393.6
Common shares repurchased                       (0.6)              (0.9)
Common shares issued                            0.3                2.3
         Total common shares outstanding,      395.1              395.1
          end of period (1)
          As of December 31, 2012, excludes (a) 3.2 million potentially
          dilutive shares associated with vested and exercisable stock options
(1)       with an average exercise price of $37.07 per share, (b) 2.7 million
          potentially dilutive shares associated with unvested stock options,
          and (c) 1.9 million potentially dilutive shares associated with
          unvested restricted stock units.

Total rental and management straight-line revenue and expense:
In accordance with GAAP, the Company recognizes consolidated rental and
management revenue and expense related to non-cancellable customer and ground
lease agreements with fixed escalations on a straight-line basis, over the
applicable lease term. As a result, the Company’s revenue recognized may
differ materially from the amount of cash collected per tenant lease, and the
Company’s expense incurred may differ materially from the amount of cash paid
per ground lease. Additional information regarding straight-line accounting
can be found in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2011 in the section entitled "Revenue Recognition," in note 1,
"Business and Summary of Significant Accounting Policies" within the notes to
the consolidated financial statements. A summary of total rental and
management straight-line revenue and expense, which represents the non-cash
revenue and expense recorded due to straight-line recognition, is as follows:
                                                    
                             Three Months Ended            Twelve Months Ended
                             December 31,                  December 31,
                             2012           2011          2012      2011
Total rental and
management operations        $47,260         $50,994       $165,806   $143,994
straight-line revenue
Total rental and
management operations        $7,553          $7,827        $33,700    $30,952
straight-line expense
                                                                      
                             Three Months Ended            Twelve Months Ended
                             December 31,                  December 31,
Selling, general,
administrative and           2012            2011          2012       2011
development expense
breakout:
Total rental and             $52,171         $42,000       $181,242   $159,147
management overhead
Network development          2,334           2,734         6,744      7,864
services segment overhead
Corporate and development    22,994          18,475        89,093     76,705
expenses
Stock-based compensation     11,911          10,686        50,222     45,108
expense
Total                        $89,410         $73,895       $327,301   $288,824
                                                                      
                             Three Months Ended            Twelve Months Ended
                             December 31,                  December 31,
International
pass-through revenue         2012            2011          2012       2011
detail:
Pass-through revenue         $67,933         $49,388       $229,105   $176,085
                                                                      
SELECTED CASH FLOW
DETAIL:
                             Three Months Ended            Twelve Months Ended
                             December 31,                  December 31,
Payments for purchase of
property and equipment       2012            2011          2012       2011
and construction
activities:
Discretionary - capital      $86,850         $74,996       $279,015   $296,906
projects
Discretionary - ground       33,887          11,012        82,349     91,292
lease purchases
Redevelopment                27,954          18,020        86,656     55,301
Capital improvements (1)     36,477          16,714        99,981     60,829
Corporate                    5,853           5,184         20,047     18,687
Total                        $191,021        $125,926      $568,048   $523,015
____
      Includes new market start-up capital expenditures of: (a) approximately
(1)   $5.6 million during the three months ended December 31, 2012; and (b)
      approximately $24.5 million during the twelve months ended December 31,
      2012.
                                                                    
UNAUDITED SELECTED FINANCIAL INFORMATION
(Totals may not add due to rounding.)
                 
SELECTED STATEMENT
OF OPERATIONS
DETAIL:
The following table reflects the estimated impact of foreign currency exchange
rate fluctuations, straight-line revenue and expense recognition and material
one-time items on total rental and management revenue, Adjusted EBITDA and
AFFO:
                                                                    
The calculation of Core Growth is as
follows:
                                      Total Rental
                                      and              Adjusted
Three Months Ended December 31,                        EBITDA       AFFO
2012                                  Management
                                      Revenue
Core Growth                           19.3%            19.6%        11.6%
Estimated impact of fluctuations
in foreign currency exchange          (1.8)%           (1.4)%       (1.4)%
rates
Impact of straight-line revenue       (2.0)%           (2.8)%       -
recognition
Impact of material one-time items     -                1.4%         (5.6)%
    Reported growth                   15.4%            16.8%        4.7%
                                                                    
                                      Total Rental
                                      and              Adjusted     AFFO
Twelve Months Ended December 31,      Management       EBITDA
2012                                  Revenue
Core Growth                           21.1%            21.3%        18.8%
Estimated impact of fluctuations
in foreign currency exchange          (3.8)%           (3.1)%       (3.8)%
rates
Impact of straight-line revenue       (0.2)%           (0.1)%       -
recognition
Impact of material one-time items     0.5%             0.6%         (1.4)%
    Reported growth                   17.5%            18.6%        13.5%

                                                               
SELECTED PORTFOLIO DETAIL - OWNED
SITES:
                      
Tower       As of                                                     As of
Count(1):
            September   Constructed    Acquired      Adjustments      December
            30, 2012                                                  31, 2012
United      21,668      87             627           152              22,534
States(2)
Brazil      4,311       28             -             6                4,345
Chile       1,180       1              -             -                1,181
Colombia    2,847       58             42            57               3,004
Germany     -           -              2,031         -                2,031
Ghana       1,908       18             -             -                1,926
India       10,116      287            -             (25)             10,378
Mexico(3)   5,562       26             190           (1)              5,777
Peru        475         -              -             25               500
South       1,601       2              -             1                1,604
Africa
Uganda      1,031       12             -             -                1,043
___ Total   50,699      519            2,890         215              54,323
(1) Excludes in-building and outdoor distributed antenna system networks.
(2) Includes 274 broadcast towers.
(3) Includes 199 broadcast towers.












UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED
FINANCIAL MEASURES
(In thousands, except percentages. Totals may not add due to rounding.)
                                                    
The reconciliation of net income to Adjusted EBITDA and the calculation of
Adjusted EBITDA Margin are as follows:
                                                                      
                                Three Months Ended       Twelve Months Ended
                                December 31,             December 31,
                                2012          2011       2012         2011
Net income                      $118,153      $196,434   $594,025     $381,840
    Income from equity method   (10)          (11)       (35)         (25)
    investments
    Income tax provision        43,187        (36,901)   107,304      125,080
    (benefit)
    Other expense               18,832        7,265      38,300       122,975
    Loss on retirement of       -             -          398          -
    long-term obligations
    Interest expense            104,043       85,119     401,665      311,854
    Interest income             (1,427)       (541)      (7,680)      (7,378)
    Other operating expenses    27,035        22,333     62,185       58,103
    Depreciation, amortization  178,488       143,615    644,276      555,517
    and accretion
    Stock-based compensation    12,329        11,252     51,983       47,437
    expense
Adjusted EBITDA                 $500,630      $428,565   $1,892,421   $1,595,403
Divided by total revenue        768,374       653,199    2,875,960    2,443,532
    Adjusted EBITDA Margin      65%           66%        66%          65%

UNAUDITED REIT MEASURES AND RECONCILIATIONS TO                 
GAAP MEASURES
(In thousands, except per share data. Totals may
not add due to rounding.)
                                
The reconciliation of net income to Funds From Operations and the calculation
of Adjusted Funds From Operations and Adjusted Funds From Operations per Share
are presented below:
                                                                   
                          Three Months Ended        Twelve Months Ended
                          December 31,              December 31,
                          2012         2011         2012           2011
Net Income                $118,153     $196,434     $594,025       $381,840
      Adjustment for
      pro forma income    -            (40,570)     -              82,908
      tax provision
      (benefit) (1)
           Pro forma      118,153      155,864      594,025        464,748
           net income
      Real estate
      related
      depreciation,       154,329      124,977      562,298        481,926
      amortization and
      accretion
Funds From Operations     272,482      280,841      1,156,323      946,674
      Straight-line       (47,260)     (50,994)     (165,806)      (143,994)
      revenue
      Straight-line       7,553        7,827        33,700         30,952
      expense
      Stock-based
      compensation        12,329       11,252       51,983         47,437
      expense
      Non-cash portion    2,375        (1,432)      38,027         (11,737)
      of tax provision
      Non-real estate
      related
      depreciation,       24,159       18,638       81,978         73,591
      amortization and
      accretion
      Amortization of
      deferred
      financing costs,
      capitalized         14,492       2,742        21,008         11,021
      interest and
      debt discounts
      and premiums (2)
      Other expense       18,832       7,265        38,300         122,975
      (3)
      Loss on
      retirement of       -            -            398            -
      long-term
      obligations
      Other operating     27,035       22,333       62,185         58,103
      expense (4)
      Capital
      improvement         (36,477)     (16,714)     (99,981)       (60,829)
      capital
      expenditures
      Corporate
      capital             (5,853)      (5,184)      (20,047)       (18,687)
      expenditures
Adjusted Funds From       $289,667     $276,574     $1,198,068     $1,055,505
Operations
      Divided by
      weighted average    399,625      397,724      399,287        400,195
      diluted shares
      outstanding
Adjusted Funds From       $0.72        $0.70        $3.00          $2.64
Operations per Share
___
    Adjustment for three and twelve months ended December 31, 2011 assumes the
    REIT election occurred effective as of January 1, 2011, and that as a
    result, income taxes would no longer be payable on certain of the
    Company’s activities. As a result, on a pro forma basis, income tax
    expense is lower by the amount of the adjustment. For more information,
    see Note (B) to Unaudited Pro Forma Consolidated Financial Statements in
    the Company’s Definitive Proxy Statement, filed with the SEC on October
    11, 2011. The pro forma adjustment set forth in this footnote has been
(1) made solely for the purpose of this pro forma information. This
    information is not necessarily indicative of the financial position or
    operating results that would have been achieved had the REIT election been
    effective as of January 1, 2011, nor is it necessarily indicative of
    future financial position or operating results. It also does not reflect
    one-time transaction costs related to the REIT election and the potential
    immaterial effect of lower cash balances these transactions have on
    interest income, higher borrowing costs or foregone investment
    opportunities.
(2) Reflects accrued non-cash interest expense attributable to joint-venture
    loans.
(3) Primarily includes unrealized (gain) loss on foreign currency exchange
    rate fluctuations.
(4) Primarily includes impairments and transaction related costs.

Contact:

American Tower Corporation
Leah Stearns, 617-375-7500
Vice President, Investor Relations & Capital Markets
 
Press spacebar to pause and continue. Press esc to stop.