Communication tower sites operator American Tower Corp. (AMT) Wednesday reported a lower first-quarter profit, reflecting a loss on retirement of obligations related to refinancing as well as a decline in unrealized foreign currency gains. Revenues, however, grew about 15 percent and topped analysts' estimates.
In the first quarter, net income attributable to the company decreased to $171.41 million or $0.43 per share, from $221.31 million or $0.56 per share in the previous year.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.48 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that the decrease in net income was mainly due to $35.3 million loss on retirement of long-term obligations related to refinancing of the company's $1.75 billion securitization and a year over year decline in unrealized foreign currency gains of $33.7 million.
Adjusted funds from operations, or AFFO per share was $0.90, while the company posted $0.82 per share last year. The company said AFFO reflected impact of the introduction of a new category of capital expenditures, "Start-Up Capital Projects."
Total operating revenues grew 15.2 percent to $802.73 million, which also came above analysts' estimate of $791.89 million. Total rental and management revenue increased 13.7 percent to $777.43 million, and the core growth was about 20.3 percent.
Jim Taiclet, chief executive officer of the company stated, "Our strong first quarter results, enhanced network investment programs announced by wireless carriers in the U.S. and around the world, and my recent interactions with our field teams on the ground all confirm continuing robust demand for tower space."
For full year 2013, the company expects to report adjusted funds from operations in the range of $1.42 billion to $1.47 billion, and net income in the range of $765 million to $840 million.
Total rental and management revenue is estimated to be in the range of $3.16 billion to $3.21 billion.
AMT is currently trading at $83.69, down $0.30 or 0.36 percent, on a volume of 417 thousand shares.
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