American Tower Corporation (reit) · NYSE:AMT
American Tower Corporation (reit) — Q3 2023 Earnings Presentation
23 slides from American Tower Corporation (reit)'s earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Earnings Conference Call
Third Quarter 2023 Earnings Conference Call October 26, 2023
Slide 2: Agenda
Agenda Introduction Adam Smith Senior Vice President, Investor Relations Opening Remarks Tom Bartlett President and Chief Executive Officer Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements within the meaning of federal securities laws concerning our goals, beliefs, strategies, future operating results and underlying assump
Slide 4: Consolidated Results Highlights
Consolidated Results Highlights Y/Y Y/Y FX-Neutral $ in millions, except per share data Q3 2023 Q3 2022 Change Change(1) Total property revenue $2,792 $2,610 7.0% 8.0% Total revenue $2,819 $2,672 5.5% 6.4% Net income attributable to AMT common(2) (3) $587 $840 (30.1%) N/A stockholders (3) Per dilute
Slide 5: Technology Update
Technology Update Tom Bartlett President and Chief Executive Officer
Slide 6: 5G Mobile Data Growth
5G Mobile Data Growth Average Data Usage Profile Examples of Video Streaming North America 2023(1) Increases per Day Daily Monthly Use Case Usage Consumption Video Streaming ~1.25 hrs 19-20 GB ~1.25 hrs of 720p HD, or 360p ~10 min <1 GB ~45 mins of 1080 HD, or 480p ~30 min 5-6 GB 720p HD ~25 min 8-9
Slide 7: Financial Results
Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer
Slide 8: Q3 2023 Property Revenue
Q3 2023 Property Revenue ($ in millions) Property Revenue Organic Tenant Billings Growth(2) 12.8% $2,792 $2,610 7.9% 8.2% >7% >6.5% 7.0% Growth 6.1% 8.0% FX-Neutral Growth(1) 5.2% 6.3% 7.3% Tenant Billings Growth 5.3% Q3 2022 Q3 2023 Total U.S. & Intl LatAm APAC Europe Africa Canada Impact of Sprint
Slide 9: Q3 2023 Adjusted EBITDA and Attributable AFFO
Q3 2023 Adjusted EBITDA and Attributable AFFO ($ in millions) Adjusted EBITDA AFFO Attributable to AMT $1,814 Common Stockholders $1,643 $1,206 $1,102 9.5% Growth 10.4% Growth 10.0% FX-Neutral Growth(1) 10.8% FX-Neutral Growth(1) 9.3% Per Share Growth Q3 2022 Q3 2023 Q3 2022 Q3 2023 61.5% Margin 64.
Slide 10: Raising 2023 Property Revenue Outlook
Raising 2023 Property Revenue Outlook(1) ($ in millions) $57 $10,940 $31 $10,880 ($28) >4%, or >6% FX-neutral growth(2), vs. 2022 Prior Outlook Core Property Pass-Through/ FX Current Outlook Outperformance Straight-line › Increasing 2023 Property Revenue midpoint by ~$60 million vs. prior outlook ›
Slide 11: Raising 2023 Organic Tenant Billings Growth Outlook
Raising 2023 Organic Tenant Billings Growth Outlook(1)(2) ~12% ~8% >7% ~7% ~6.5% ~5% ~5% ~6% >5% Total U.S. & Canada International LatAm APAC Europe Africa Impact of Sprint Churn(3) › Raising outlook for Organic Tenant Billings Growth across nearly all segments › Increasing U.S. & Canada colocation
Slide 12: Raising 2023 Adjusted EBITDA Outlook
Raising 2023 Adjusted EBITDA Outlook(1) ($ in millions) $67 $14 $13 $7,050 $6,990 ($20) ($14) >6%, or 7% FX-neutral Growth(2), vs. 2022 Prior Outlook Cash Property Services Cash SG&A Net Straight-line FX Current Outlook Gross Margin Gross Margin 63.2% Margin 63.6% Margin › Raising Adjusted EBITDA ou
Slide 13: Raising 2023 Attributable AFFO Outlook
Raising 2023 Attributable AFFO Outlook(1) ($ in millions) $61 $4,570 $4,530 ($16) ($5) $9.70 $9.79 per Share per Share <1%, or 1% FX-neutral per Share Growth(2) vs. 2022 Prior Outlook Cash Adjusted EBITDA Other FX Current Outlook › Increasing Attributable AFFO per Share midpoint by $0.09 vs. prior o
Slide 14: Capital Allocation & Balance Sheet Management
Capital Allocation & Balance Sheet Management ($ in billions, totals may not add due to rounding) 2023E Capital Deployment(1) Balance Sheet Management 12/31/2022 9/30/2023 Net Leverage 5.4x 5.0x Discretionary (LQA) Common Capex Stock $1.5 Liquidity ($B) $7.1 $9.7 (2) Dividends $3.0 Fixed / Floating
Slide 15: In Summary
In Summary Strong Third Quarter › Compelling organic growth as positive secular trends persist, supporting the ability to raise full year outlook across critical financial metrics › Data center business continues to outperform our initial underwriting expectations, positioned for another year of rec
Slide 16: Definitions
Definitions Adjusted EBITDA: Net income before income (loss) from equity method investments; Income tax benefit (provision); Other income (expense); Gain (loss) on retirement of long-term obligations; Interest expense; Interest income; Other operating income (expense), including Goodwill impairment;
Slide 17: Definitions (continued)
Definitions (continued) New Site Tenant Billings: Day-one Tenant Billings associated with sites that have been built or acquired since the beginning of the prior-year period. Incremental colocations/amendments, escalations or cancellations that occur on these sites after the date of their addition t
Slide 18: Risk Factors
Risk Factors This presentation contains “forward-looking statements” concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Examples of these statements i
Slide 19: Risk Factors (continued)
Risk Factors (continued) (15) if we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if we qualify for taxation as a REIT, we may face tax liabilities that impact earnings and
Slide 20: Historical Reconciliations
Historical Reconciliations ($ in millions, totals may not add due to rounding) RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME 2012 2013 2014 2015 2016 2017 2018( 1) 2019 2020 2021 2022 3Q22 3Q23 Net income $594 $482 $803 $672 $970 $1,225 $1,265 $1,917 $1,692 $2,568 $1,697 $820 $577 Income from equi
Slide 21: Current 2023 Outlook Reconciliations
Current 2023 Outlook Reconciliations(1)(2) ($ in millions, except share and per share data, totals may not add due to rounding) Reconciliations of Outlook for Adjusted EBITDA to Net Income: Full Year 2023 Net income $1,695 to $1,755 Interest expense 1,400 to 1,410 Depreciation, amortization and accr
Slide 22: Prior 2023 Outlook Reconciliations
Prior 2023 Outlook Reconciliations(1)(2) ($ in millions, except share and per share data, totals may not add due to rounding) Reconciliations of Outlook for Adjusted EBITDA to Net Income: Full Year 2023 Net income $1,785 to $1,845 Interest expense 1,420 to 1,400 Depreciation, amortization and accret
Slide 23: Reconciliations
Reconciliations ($ in millions, except per share amounts & as noted, totals may not add due to rounding) Growth Estimated Q3 2023 FX-Neutral Q3 2023 FX-Neutral Reconciliations Q3 2022 Q3 2023 Rate FX Impact Q3 2022 FX-Neutral Growth Rate Total Property Revenue $2,610 $2,792 7.0% (~$25) $2,610 $2,817
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