American Tower Corporation (reit) · NYSE:AMT
American Tower Corporation (reit) — Q4 2023 Earnings Presentation
20 slides from American Tower Corporation (reit)'s earnings presentation, Feb 27, 2024
Slide 1: Fourth Quarter & Full Year 2023 Earnings Conference Call
Fourth Quarter & Full Year 2023 Earnings Conference Call February 27, 2024
Slide 2: Agenda
Agenda Introduction Adam Smith Senior Vice President, Investor Relations Opening Remarks Steven Vondran 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 Change / FX- Y/Y Change / FX- $ in millions, except per share data 4Q23 4Q22 FY’23 FY‘22 Neutral Change(1) Neutral Change(1) Total property revenue $2,766 $2,645 4.6% 5.8% $11,001 $10,470 5.1% 6.8% Total revenue $2,787 $2,705 3.0% 4.3% $11,144 $10,711 4.0% 5.7% Ne
Slide 5: Financial Results
Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer
Slide 6: FY 2023 Performance
FY 2023 Performance ($ in millions) Property Revenue Adjusted EBITDA AFFO Attributable to AMT Common Stockholders 60.6% 62.3% $11,001 Cash Margin Cash Margin $10,470 $7,087 $6,644 $4,612 $4,517 5.1% Growth 2.1% Growth 6.8% FX-Neutral Growth(1) 6.7% Growth 3.0% FX-Neutral Growth(1) 7.2%Tenant Billing
Slide 7: 2024 Property Revenue Outlook
2024 Property Revenue Outlook(1) ($ in millions) $225 $80 $200 $11,140 ($175) $11,001 ($191) >1% Y/Y Growth; 3% FX Neutral(2) 2023 U.S & International Data Straight-line/ FX 2024 Canada Centers Pass-Through Outlook Strong demand driving organic growth and CoreSite performance; absorbing FX & straigh
Slide 8: 2024 Organic Tenant Billings Growth Outlook
2024 Organic Tenant Billings Growth Outlook(1)(2) ~11-12% >5.5% ~6% ~5-6% ~5% ~4.7% ~5% ~2% ~2% Total U.S. & Canada International Africa Europe LatAm APAC Impact of Sprint Churn(3) › 5G and other technology upgrades driving solid mid-single-digit consolidated Organic Tenant Billings Growth › US & Ca
Slide 9: 2024 Adjusted EBITDA Outlook
2024 Adjusted EBITDA Outlook(1) ($ in millions) $375 $30 $7,087 ($225) $7,135 ($132) <1% Y/Y Growth; ~2.5% FX Neutral(2) 2023 Cash Gross Cash SG&A Net FX 2024 Margin Straight-line Outlook 62.3% 62.6% Cash Margin Cash Margin Declining SG&A supporting cash margin expansion (1) Reflects 2024 outlook mi
Slide 10: 2024 Attributable AFFO Outlook
2024 Attributable AFFO Outlook(1)(2) ($ in millions) $405 $4,835 ($100) $4,612 ($82) $9.87 $10.33 per Share per Share ~5% Y/Y per Share Growth; ~6.5% FX Neutral(3) 2023 Cash Adjusted Financing FX 2024 EBITDA Costs / Other (4) Outlook › Expect return to strong, sustainable cash flow growth trajectory
Slide 11: Capital Allocation & Balance Sheet Management
Capital Allocation & Balance Sheet Management ($ in billions, totals may not add due to rounding) 2024E Capital Deployment(1) Balance Sheet Management 12/31/2022 12/31/2023 Net Leverage Discretionary 5.4x 5.2x (LQA) Capex Common Stock $1.4 Liquidity ($B) $7.1 $9.6 Dividends (2) $3.0 Fixed / Floating
Slide 12: In Summary
In Summary Solid Performance in 2023 › Strong performance anchored by demand for our global asset portfolio › Another record year of signed new business for our data center business › Expanded margins through deliberate focus on cost management, coupled with inherent operating leverage in tower mode
Slide 13: Definitions
Definitions Adjusted EBITDA: Net income before income (loss) from equity method investments; Income tax benefit (provision); Other income (expense); Gain (loss) on retirement of long-term obligations; Interest expense; Interest income; Other operating income (expense), including Goodwill impairment;
Slide 14: Definitions (continued)
Definitions (continued) New Site Tenant Billings: Day-one Tenant Billings associated with sites that have been built or acquired since the beginning of the prior-year period. Incremental colocations/amendments, escalations or cancellations that occur on these sites after the date of their addition t
Slide 15: Risk Factors
Risk Factors This presentation contains “forward-looking statements” concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Examples of these statements i
Slide 16: Risk Factors (continued)
Risk Factors (continued) (15) if we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if we qualify for taxation as a REIT, we may face tax liabilities that impact earnings and
Slide 17: Historical Reconciliations
Historical Reconciliations ($ in millions, totals may not add due to rounding) RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4Q22 4Q23 2023 Net income (loss) $482 $803 $672 $970 $1,225 $1,265 $1,917 $1,692 $2,568 $1,697 ($717) $13 $1,367 Income
Slide 18: 2024 Outlook Reconciliations
2024 Outlook Reconciliations(1)(2) ($ 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 2024 Net income $3,305 to $3,415 Interest expense 1,460 to 1,440 Depreciation, amortization and accretion 1,
Slide 19: Reconciliations
Reconciliations ($ in millions, except per share amounts & as noted, totals may not add due to rounding) Estimated Q4 2023 FX-Neutral Q4 2023 FX-Neutral Reconciliations Q4 2022 Q4 2023 Growth Rate FX Impact Q4 2022 FX-Neutral Growth Rate Total Property Revenue $2,645 $2,766 4.6% (~$33) $2,645 $2,799
Slide 20: 2024 India Outlook
2024 India Outlook ($ in millions, totals may not add due to rounding) (2) 2024 OUTLOOK INDIA BUSINESS CONTRIBUTIONS 1Q24E 2Q24E 3Q24E 4Q24E 2024 Outlook 2023 Total Tenant Billings (FX Impacted) $ 155 $ 160 $ 160 $ 165 $ 640 $ 627 Pass-Through Revenue (1) 145 140 140 140 565 518 Straight-Line Revenu
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