American Tower reviewing books on tax issue

February 25, 2008 08:15 AM E-mail| |Comments ()| Text size – +

American Tower Corp., which owns wireless communication towers, said today that fourth-quarter revenue rose 12 percent but delayed reporting additional financial information while it resolves a tax issue.

The Boston-based company is reviewing past tax accounting for its former satellite and fiber network access unit, Verestar, and said it may take non-cash adjustments to past revenue and net operating loss carry-forwards -- which are used to determine tax bills.

"The company has discovered potential prior period errors associated with certain non-cash tax-related items," American Tower said in a statement. "The company is in the process of completing its analyses, including an evaluation of the materiality of the potential errors and any impact on prior period financial statements."

American Tower did report revenue and other operating metrics from the fourth-quarter and full year. The company said its customers' need for expanded wireless coverage boosted demand, sending revenue up to $378.1 million. Rental and management revenue added 12 percent to $370.5 million.

Analysts expected revenue of $371 million, according to Thomson Financial.

The company reported $128.9 million in cash from operating activities. Free cash flow was $81.5 million.

Chief Executive Jim Taicelt said in a statement the higher revenue came from "robust demand for tower space among numerous carriers in all of our served markets."

For 2008, American Tower expects revenue from its rental and management segment to come in between $1.52 billion and $1.54 billion. Analysts expect $1.57 billion in total revenue. (AP)