American Tower Corporation (reit) · NYSE:AMT
American Tower Corporation (reit) — Q2 2023 Earnings Presentation
21 slides from American Tower Corporation (reit)'s earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Earnings Conference Call
Second Quarter 2023 Earnings Conference Call July 27, 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 Q2 2023 Q2 2022 Change Change(1) Total property revenue $2,729 $2,615 4.4% 6.3% Total revenue $2,772 $2,674 3.6% 5.6% Net income attributable to AMT common(2) (3) $476 $898 (47.0%) N/A stockholders (3) Per dilute
Slide 5: Financial Results
Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer
Slide 6: Q2 2023 Property Revenue
Q2 2023 Property Revenue ($ in millions) Property Revenue Organic Tenant Billings Growth(2) $2,729 12.9% $2,615 7.9% 8.3% ~7% ~6.5% 4.4% Growth 6.3% FX-Neutral Growth(1) 5.4% 5.6% 6.2% 7.2% Tenant Billings Growth 5.1% Q2 2022 Q2 2023 Total U.S. & Intl LatAm APAC Europe Africa Canada Impact of Sprint
Slide 7: Q2 2023 Adjusted EBITDA and Attributable AFFO
Q2 2023 Adjusted EBITDA and Attributable AFFO ($ in millions) Adjusted EBITDA AFFO Attributable to AMT Common Stockholders $1,749 $1,671 $1,155 $1,151 (0.4%) Growth 4.7% Growth 0.9% FX-Neutral Growth(1) 5.9% FX-Neutral Growth(1) (2.0%) Per Share Growth Q2 2022 Q2 2023 Q2 2022 Q2 2023 62.5% Margin 63
Slide 8: Raising 2023 Property Revenue Outlook
Raising 2023 Property Revenue Outlook(1) ($ in millions) $60 $10,880 $65 $10,755 ~4% Growth, or >5% on an FX-neutral basis(2), vs. 2022 Prior Outlook Core Property Straight-line/ Current Outlook Outperformance Pass-Through/FX › Increasing 2023 Property Revenue midpoint by ~$125 million vs. prior out
Slide 9: Raising 2023 Organic Tenant Billings Growth Outlook
Raising 2023 Organic Tenant Billings Growth Outlook(1)(2) >11% ~8% ~6.5% >6% >6.5% ~5.5% ~5% ~4% ~4% Total U.S. & Canada International LatAm APAC Europe Africa Impact of Sprint Churn(3) › Raising outlook for Consolidated and International Organic Tenant Billings Growth › International outperformance
Slide 10: Raising 2023 Adjusted EBITDA Outlook
Raising 2023 Adjusted EBITDA Outlook(1) ($ in millions) $75 $40 $6,990 $6,915 ($40) >5% Growth, or ~6% on an FX-neutral basis(2), vs. 2022 Prior Outlook Cash Property Services Straight-line/FX Current Outlook Gross Margin Gross Margin 62.9% Margin 63.2% Margin › Raising Adjusted EBITDA outlook midpo
Slide 11: Raising 2023 Attributable AFFO Outlook
Raising 2023 Attributable AFFO Outlook(1) ($ in millions) $35 $4,530 $4,505 ($10) $9.65 $9.70 per Share per Share ~(0.6%) per Share Growth, or flat on an FX-neutral basis(2), vs. 2022 Prior Outlook Cash Adjusted EBITDA Other/FX Current Outlook › Increasing Attributable AFFO per Share midpoint by $0.
Slide 12: Capital Allocation & Balance Sheet Management
Capital Allocation & Balance Sheet Management ($ in millions, except as noted) U.S. Data Center Backlog & Discretionary Balance Sheet Management Capital Spend 12/31/2022 6/30/2023 $383 (1) $360 $328 Net Leverage 5.4x 5.3x $54 (LQA) $247 $203 Liquidity ($B) $7.1 $8.2 $144 $37 $111 Fixed / Floating $2
Slide 13: In Summary
In Summary Strong Second Quarter › Solid performance supported by strong leasing growth across our global portfolio › Tower business complemented by another quarter of elevated leasing volumes from CoreSite › Focus on cost management continues to drive high conversion rates and margin expansion › Co
Slide 14: Definitions
Definitions Adjusted EBITDA: Net income before income (loss) from equity method investments; Income tax benefit (provision); Other income (expense); Gain (loss) on retirement of long-term obligations; Interest expense; Interest income; Other operating income (expense); Depreciation, amortization and
Slide 15: Definitions (continued)
Definitions (continued) New Site Tenant Billings: Day-one Tenant Billings associated with sites that have been built or acquired since the beginning of the prior-year period. Incremental colocations/amendments, escalations or cancellations that occur on these sites after the date of their addition t
Slide 16: Risk Factors
Risk Factors This presentation contains “forward-looking statements” concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Examples of these statements i
Slide 17: Risk Factors (continued)
Risk Factors (continued) (15) if we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if we qualify for taxation as a REIT, we may face tax liabilities that impact earnings and
Slide 18: Historical Reconciliations
Historical Reconciliations ($ 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 2Q22 2Q23 Net income $594 $482 $803 $672 $970 $1,225 $1,265 $1,917 $1,692 $2,568 $1,697 $891 $462 Income from equi
Slide 19: Current 2023 Outlook Reconciliations
Current 2023 Outlook Reconciliations(1)(2) ($ 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 $1,785 to $1,845 Interest expense 1,420 to 1,400 Depreciation, amortization and accr
Slide 20: Prior 2023 Outlook Reconciliations
Prior 2023 Outlook Reconciliations(1)(2) ($ 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 $1,770 to $1,880 Interest expense 1,395 to 1,375 Depreciation, amortization and accret
Slide 21: Reconciliations
Reconciliations ($ in millions, except per share amounts & as noted, totals may not add due to rounding) Growth Estimated Q2 2023 FX-Neutral Q2 2023 FX-Neutral Reconciliations Q2 2022 Q2 2023 Rate FX Impact Q2 2022 FX-Neutral Growth Rate Total Property Revenue $2,615 $2,729 4.4% (~$51) $2,615 $2,780
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