American Tower Corporation (reit) · NYSE:AMT
American Tower Corporation (reit) — American Tower — Q1 2020 Earnings Presentation
26 slides from American Tower Corporation (reit)'s earnings presentation, Apr 29, 2020
Slide 1: First Quarter 2020 Earnings Conference Call
First Quarter 2020 Earnings Conference Call April 29, 2020
Slide 2: Agenda
Agenda Introduction Igor Khislavsky 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 Closing Remarks Jim Taiclet Executive Chairman 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 concerning our goals, beliefs, strategies, future operating results and underlying assumptions. Actual results may differ materially fr
Slide 4: Consolidated Results Highlights
Consolidated Results Highlights $ in millions, except per share data Q1 2020 Q1 2019 Y/Y Change Total Property Revenue $1,973 $1,786 10.5% Total Revenue $1,993 $1,813 9.9% Net income attributable to AMT Common $415 $397 4.4% Stockholders Per diluted share attributable to AMT $0.93 $0.89 4.5% Adjuste
Slide 5: Opening Remarks
Opening Remarks Tom Bartlett President and Chief Executive Officer
Slide 6: Foundational U.S. Business
Foundational U.S. Business U.S. Organic Tenant U.S. Cash SG&A as a % of Q1 2020 U.S. NOI Yield Billings Growth Property Revenue by Vintage 7.3% 7.3% 4.4% 24% 5.8% 6.2% 4.3% 17% ~5% 4.2% 13% 4.2% 4.1% 6% (1) (1) 2016 2017 2018 2019 2020E 2016 2017 2018 2019 2020E Pre-2005 2005- 2011- Total 2010 2020
Slide 7: Financial Results
Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer
Slide 8: Q1 2020 Property Revenue
Q1 2020 Property Revenue ($ in millions) Property Revenue Organic Tenant Billings Growth $1,973 9.3% 7.5% $1,786 5.4% 5.6% 5.1% 10.5% Growth 10.3% Tenant Billings Growth 1.9% (0.7%) Q1 2019 Q1 2020 Total U.S. Intl. Africa LatAm Europe Asia › Property revenue growth driven by solid organic trends and
Slide 9: Q1 2020 Adjusted EBITDA and Consolidated AFFO
Q1 2020 Adjusted EBITDA and Consolidated AFFO ($ in millions, except per share data) Adjusted EBITDA Consolidated AFFO $1,271 $861 $907 $1,114 5.3% Growth 14.1% Growth 4.6% Per Share Growth Q1 2019 Q1 2020 Q1 2019 Q1 2020 61.5% Margin 63.8% Margin $1.94/Share $2.03/Share › Underlying operating lever
Slide 10: Affirming Property Revenue Outlook on FX-Neutral Basis
Affirming Property Revenue Outlook on FX- Neutral Basis(1)(2) ($ in millions) Property Revenue Organic Tenant Billings Growth $8,050 ~9% $7,750 ~7% (~$300) ~5% ~5% ~5% +3.8% vs. 2019 +9.0% on FX-neutral basis ~1-2% ~0% Prior Outlook FX Impact Current Outlook Total U.S. Intl. Africa LatAm Europe Asia
Slide 11: Affirming Adjusted EBITDA and Consolidated AFFO Outlook on FX-Neutral Basis
Affirming Adjusted EBITDA and Consolidated AFFO Outlook on FX-Neutral Basis(1)(2) ($ in millions, except per share data) Adjusted EBITDA Consolidated AFFO $5,135 $4,970 $3,790 (~$165) $3,650 (~$140) +4.8% vs. 2019 +3.7% vs. 2019 +9.2% on FX-neutral basis +8.8% on FX-neutral basis Prior Outlook FX Im
Slide 12: Disciplined, Diverse Capital Allocation Strategy
Disciplined, Diverse Capital Allocation Strategy ($ in billions, except per share data) 2020E Capital Deployment Historical Consolidated Historical Return on AFFO per Share Invested Capital Non-Discretionary Capex $8.18 $0.2 Discretionary 10.9% 10.4% Capex $0.9 M&A & Share Repurchases (2) $1.0 Commo
Slide 13: Substantial Liquidity & Strong Balance Sheet
Substantial Liquidity & Strong Balance Sheet(1) ($ in billions) Liquidity Debt Tenor Weighted Average Cost of Debt (years) $5.4 5.2 5.2 3.9% (1) $3.6 3.1% 2016 Q1 2020 2016 Q1 2020 2016 Q1 2020 Increased by $1.8 Billion Sustained at 5+ Years Decreased by ~80 basis points › $5.4 billion in liquidity
Slide 14: In Summary
In Summary Strong First Quarter › Solid trends demonstrate resilience and stability of business model › 20% growth in common dividend › Liquidity of $5.4 billion(1) › Continued margin expansion and strong cash flow generation Expect to manage through COVID-19 crisis throughout 2020 › Broadly consist
Slide 15: Definitions
Definitions Adjusted EBITDA: Net income before income (loss) from equity method investments; Income tax benefit (provision); Other income (expense); Gain (loss) on retirement of long-term obligations; Interest expense; Interest income; Other operating income (expense); Depreciation, amortization and
Slide 16: Definitions (continued)
Definitions (continued) Organic Tenant Billings: Tenant Billings on sites that the Company has owned since the beginning of the prior-year period, as well as Tenant Billings activity on new sites that occurred after the date of their addition to the Company’s portfolio. Organic Tenant Billings Growt
Slide 17: Risk Factors
Risk Factors This presentation contains “forward-looking statements” concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions and other statements that are not necessarily based on historical facts. Examples of these statements i
Slide 18: Risk Factors (continued)
Risk Factors (continued) (15) restrictive covenants in the agreements related to our securitization transactions, our credit facilities and our debt securities could materially and adversely affect our business by limiting flexibility, and we may be prohibited from paying dividends on our common sto
Slide 19: Historical Reconciliations: ROIC
Historical Reconciliations: ROIC ($ in millions, totals may not add due to rounding) RETURN ON INVESTED CAPITAL (ROIC) RECONCILIATION (1) 2010 2011 2012 2013(2) 2014 2015(3) 2016 (4) 2017(5) 2018 (5)(6) 2019 (5) 2020E(7) Adjusted EBITDA $1,348 $1,595 $1,892 $2,401 $2,650 $3,206 $3,743 $4,149 $4,725
Slide 20: Historical Reconciliations: U.S.
Historical Reconciliations: U.S. ($ in millions, totals may not add due to rounding) U.S. NOI Yield by Vintage Pre-2005 Annualized Revenue $1,681 Annualized Direct Expense 189 Annualized Gross Margin 1,493 Divided By: Total Investment $6,160 NOI Yield % 24% 2005-2010 Annualized Revenue $1,213 Annual
Slide 21: Historical Reconciliations
Historical Reconciliations ($ in millions, totals may not add due to rounding) RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME 2010 2011 2012 2013 2014 2015 2016 2017 2018 ( 1) 2019 1Q19 1Q20 Net income $374 $382 $594 $482 $803 $672 $970 $1,225 $1,265 $1,917 $408 $419 (Income) loss from discontinued
Slide 22: Current 2020 Outlook Reconciliations
Current 2020 Outlook Reconciliations(1)(2) ($ in millions, totals may not add due to rounding) Reconciliations of Outlook for Adjusted EBITDA to Net Income: Full Year 2020 Net income $1,790 to $1,890 Interest expense 855 to 835 Depreciation, amortization and accretion 1,870 to 1,890 Income tax provi
Slide 23: Prior 2020 Outlook Reconciliations
Prior 2020 Outlook Reconciliations(1)(2) ($ in millions, totals may not add due to rounding) Reconciliations of Outlook for Adjusted EBITDA to Net Income: Full Year 2020 Net income $1,950 to $2,050 Interest expense 865 to 845 Depreciation, amortization and accretion 1,925 to 1,945 Income tax provisi
Slide 24: 2020 FX-Neutral Reconciliations
2020 FX-Neutral Reconciliations(1) ($ in millions, totals may not add due to rounding) Growth Estimated Q1 2020 Growth Q1 2019 Q1 2020 Rate FX Impact Q1 2019 FX-Neutral Rate Total Property Revenue $1,786 $1,973 10.5% # (~$48) $1,786 $2,021 13.2% Adjusted EBITDA 1,114 1,271 14.1% # (~26) 1,114 1,297
Slide 25: Q1 2020 Consolidated AFFO Reconciliation
Q1 2020 Consolidated AFFO Reconciliation ($ and shares in millions, except per share amounts) Q1 2019 Q1 2020 Growth Rate Consolidated AFFO, as Reported $861 $907 5.3% Add: Cash Interest Payment for MTN JV stakes - 63 Consolidated AFFO, excluding Cash Interest Payment for MTN JV stakes $861 $970 12.
Slide 26: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in millions) Q1 2020 Total Debt $24,577 Cash and cash equivalents 1,326 Net debt $23,251 The quarter's annualized (LQA) Adjusted EBITDA 5,084 Consolidated AFFO per Share, as Reported 4.6x 26