First Quarter Results
ATN International, Inc. (Nasdaq: ATNI) today reported results for
the first quarter ended March 31, 2019.
Business Review and Outlook
“Overall financial results in the quarter
benefited from our diversified business model,” said Michael Prior,
Chairman, and Chief Executive Officer. “Similar to the 2018 fourth
quarter, the strong performance of our International Telecom
operations partially offset the impact of lower domestic telecom
revenues on our consolidated Adjusted EBITDA1 in the first quarter,
a period in which year-over-year comparisons for the U.S. Telecom
segment were especially difficult.
“The strong revenue growth in our International
Telecom operations was broad-based, driven by data growth and share
gains in certain markets and improved results from our U.S. Virgin
Islands business following the 2017 hurricanes. This in turn led to
improving margins and growth in Adjusted EBITDA1.
“Our U.S. Telecom business continued to manage
through a difficult operating environment. Roughly 35%, or $3.5
million, of the year-on-year U.S. Telecom Adjusted EBITDA1 decline
was due to the combined effect of the sale of 100 wholesale sites
in mid- 2018, the end of the FCC Mobility Fund subsidies, and
additional expenses related to the operations of our early stage
business investments. Continued pressure on wholesale
traffic volumes and rates, in what is already a typically a low
seasonal traffic quarter for that business, accounted for the rest
of the decline in Adjusted EBITDA1.
“Looking ahead, we expect our International
Telecom businesses to continue to perform well, reflecting
investments that we have made over the last several years in our
networks, which have resulted in significant improvements in
customer experience and the reach and breadth of our service
offerings. We expect that the steady recovery of our U.S.
Virgin Islands business will increase its contribution to overall
operating segment results. In the second quarter, we expect our
domestic wholesale revenues to improve sequentially and there are
several initiatives underway to increase U.S. Telecom segment
Adjusted EBITDA1 levels over the longer term. Additionally,
we expect the funding of our award of the Connect America Fund ll
program to begin to benefit U.S. Telecom segment’s revenues in the
second half of 2019.
“Based on our current portfolio of businesses,
we expect 2019 to be a year of strong cash flow generation for ATN
as much of our major network investment in the International
Telecom segment has been completed. We continue to closely
monitor our domestic telecom capital expenditures to address
reduced revenues as we work through other initiatives to grow
revenue in the segment. In addition to our ongoing investments in
promising earlier stage companies, we continue to evaluate
opportunities within our areas of expertise that have the potential
to be value-creating for ATN and its shareholders.”
1 See Table 5 for reconciliation of Net Income
to Adjusted EBITDA.
First Quarter 2019 Financial
Results
First quarter 2019 revenues of $103.3 million
were comparable with the prior year revenues of $104.5 million.
The $10.2 million or 15% increase in International Telecom
revenues offset a $7.0 million or 25% decline in U.S. Telecom
revenues, with approximately 70% of the decline due to lower
wholesale traffic and the remaining 30% reflecting the effect of
the prior year sale of wholesale wireless cell sites.
Additionally, Renewable Energy segment revenues of $1.5 million
were down $4.3 million from the prior year, reflecting the sale of
the U.S. solar asset portfolio in late 2018. Operating income
for the first quarter was $2.1 million compared with last year’s
first quarter operating income of $4.2 million. Adjusted
EBITDA1 for the first quarter of 2019 was $23.2 million, compared
to $26.3 million in the prior year period, primarily reflecting the
revenue decline in the U.S. Telecom segment and the sale of the
U.S. solar portfolio. Net loss attributable to ATN’s
stockholders for the first quarter was $1.6 million, or $0.10 loss
per share compared with the prior year period’s loss of $5.6
million or $0.35 loss per share.
First Quarter 2019 Operating
Highlights
The Company has three reportable segments: (i)
U.S. Telecom; (ii) International Telecom; and (iii) Renewable
Energy.
|
Segment Results |
|
Three Months Ended March 31, 2019 (in
Thousands) |
|
U.S. Telecom |
InternationalTelecom |
RenewableEnergy |
Corporateand Other |
Total |
Revenue |
$ |
21,493 |
|
$ |
80,317 |
|
$ |
1,490 |
|
$ |
- |
|
$ |
103,300 |
Operating Income (loss) |
$ |
(3,506 |
) |
$ |
13,878 |
|
$ |
(203 |
) |
$ |
(8,055 |
) |
$ |
2,114 |
Adjusted EBITDA1 |
$ |
2,263 |
|
$ |
26,886 |
|
$ |
551 |
|
$ |
(6,526 |
) |
$ |
23,174 |
Capital Expenditures |
$ |
3,075 |
|
$ |
11,356 |
|
$ |
609 |
|
$ |
2,724 |
|
$ |
17,764 |
|
Three Months Ended March 31, 2018 (in
Thousands) |
|
U.S. Telecom |
InternationalTelecom |
RenewableEnergy |
Corporateand Other |
Total |
Revenue |
$ |
28,499 |
|
$ |
70,145 |
|
$ |
5,831 |
|
$ |
- |
|
$ |
104,475 |
Operating Income (loss) |
$ |
5,224 |
|
$ |
5,640 |
|
$ |
1,936 |
|
$ |
(8,591 |
) |
$ |
4,209 |
Adjusted EBITDA1 |
$ |
11,992 |
|
$ |
17,793 |
|
$ |
3,739 |
|
$ |
(7,217 |
) |
$ |
26,307 |
Capital Expenditures |
$ |
4,751 |
|
$ |
43,995 |
|
$ |
854 |
|
$ |
2,292 |
|
$ |
51,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Telecom
U.S. Telecom revenues consist mainly of wireless
revenues from our voice and data wholesale wireless operations
and our smaller retail operations in the Southwestern United
States, as well as enterprise and wholesale wireline
revenues. Lower U.S. Telecom segment revenues reflected a 25%
decline in U.S. wireless revenues to $20.4 million, primarily due
to the lower wholesale traffic, and the sale of approximately 100
wholesale wireless cell sites early in the third quarter of
2018. In addition to these factors, the decline in U.S.
Telecom Adjusted EBITDA1 was due to the completion of our
Mobility Fund I program and cessation of the related expense
offsets, as well as the additional operating costs related to early
stage business investments made in 2018.
International Telecom
International Telecom consists of a broad range
of information and communications services including wireline and
wireless data, internet, voice and video service revenues from our
operations in Bermuda and the Caribbean. International
Telecom revenues increased 15% year-on-year mainly due to higher
broadband revenues in several of our businesses including the U.S.
Virgin Islands, as our operations recover from the 2017 hurricanes.
While we expect continued sequential revenue improvement in
2019, exclusive of the additional non-recurring revenue from FCC
support received in the second and third quarters of 2018, the
level of damage to the U.S. Virgin Islands economy may impact our
ability to fully return to pre-storm levels in that market.
International Telecom Adjusted EBITDA1 increased 51%,
primarily as a result of higher data revenues and the post-storm
recovery.
Renewable Energy
Renewable Energy segment revenues are
principally the result of the generation and sale of energy from
our commercial solar projects in India. During the fourth
quarter of 2018, ATN completed the sale of its portfolio of solar
projects in the United States. As a result, first quarter 2019
revenues were $1.5 million, compared to $5.8 million in the prior
year quarter, and Adjusted EBITDA1 amounted to $0.6 million,
compared to $3.7 million in the first quarter of 2018.
Year-on-year revenue and Adjusted EBITDA1 comparisons for
this segment will be negative for the remainder of 2019 as a result
of this transaction.
Balance Sheet and Cash Flow
Highlights
Total cash and cash equivalents at March 31,
2019 was $172.6 million. Additionally, the Company ended the
first quarter with $5.3 million in short-term investments.
Net cash provided by operating activities was $18.8 million for the
first quarter of 2019, compared with $22.5 million for the prior
year period. The decrease in operating cash flow compared
with the prior year is mostly the result of the use of cash for
working capital activity in the current year, partially offset by a
$3.0 million increase in net income after tax. For the first
quarter of 2019, the Company used net cash of $39.1 million for
investing and financing activities. This included $17.8
million in capital expenditures, $10.0 million for the purchases of
other investments and $5.0 million for the purchase of short-term
investments. Management reaffirms its estimate for
International Telecom capital expenditures to range from $50.0
million to $55.0 million for the full year 2019, approximately
$100.0 million below 2018 levels. In the U.S. Telecom
segment, we expect capital expenditures to be similar to 2018
levels, excluding new initiatives and early stage business
spending.
Conference Call Information
ATN will host a conference call on Thursday,
April 25, 2019 at 9:30 a.m. Eastern Time (ET) to discuss its first
quarter 2019 results. The call will be hosted by Michael Prior,
Chairman and Chief Executive Officer, and Justin Benincasa, Chief
Financial Officer. The dial-in numbers are US/Canada: (877)
734-4582 and International: (678) 905-9376, conference ID 7269628.
A replay of the call will be available at ir.atni.com beginning at
1:00 p.m. (ET) on April 25, 2019.
About ATN
ATN International, Inc. (Nasdaq: ATNI),
headquartered in Beverly, Massachusetts, invests in and
operates communications, energy and technology businesses in the
United States and internationally, including the Caribbean region
and Asia-Pacific, with a particular focus on markets with a need
for significant infrastructure investments and improvements. Our
operating subsidiaries today primarily provide: (i) advanced
wireless and wireline connectivity to residential and business
customers, including a range of mobile wireless solutions, high
speed internet services, video services and local exchange
services, (ii) distributed solar electric power to corporate and
government customers and (iii) wholesale communications
infrastructure services such as terrestrial and submarine fiber
optic transport, communications tower facilities, managed mobile
networks, and in-building systems. For more information, please
visit www.atni.com.
Cautionary Language Concerning Forward
Looking Statements
This press release contains forward-looking
statements relating to, among other matters, our future financial
performance and results of operations; the competitive environment
in our key markets, demand for our services and industry trends;
our growth opportunities; our priorities for 2019; the pace of
expansion and improvement of our telecommunications network and
renewable energy operations including our level of estimated future
capital expenditures and our realization of the benefits of these
investments; our future financial expectations; the estimated
timeline for an increase in revenues from our customers in the U.S.
Virgin Islands following the hurricanes; our future receipt and
timing of funding in connection with the Connect America Fund II
program; our ability and timing to receive financial support from
the government for our rebuild in the U.S. Virgin Islands and the
timing of such support; the anticipated timing of our build
schedule and energy production of our India renewable energy
projects; and management’s plans and strategy for the future. These
forward-looking statements are based on estimates, projections,
beliefs, and assumptions and are not guarantees of future events or
results. Actual future events and results could differ
materially from the events and results indicated in these
statements as a result of many factors, including, among others,
(1) the general performance of our operations, including
operating margins, revenues, capital expenditures, and the future
growth and retention of our major customers and subscriber base and
consumer demand for solar power; (2) our ability to maintain
favorable roaming arrangements, receive roaming traffic and satisfy
the needs and demands of our major wireless customers; (3) our
ability to efficiently and cost-effectively upgrade our networks
and IT platforms to address rapid and significant
technological changes in the telecommunications industry; (4)
government regulation of our businesses, which may impact our FCC
and other telecommunications licenses or our renewables businesses;
(5) our reliance on a limited number of key suppliers and vendors
for timely supply of equipment and services relating to our network
infrastructure; (6) economic, political and other risks facing our
operations; (7) the loss of or an inability to recruit skilled
personnel in our various jurisdictions, including key members of
management; (8) our ability to expand our renewable energy
business; (9) our ability to find investment or acquisition or
disposition opportunities that fit the strategic goals of the
Company; (10) the occurrence of weather events and natural
catastrophes; (11) increased competition; (12) the adequacy
and expansion capabilities of our network capacity and customer
service system to support our customer growth; (13) our continued
access to capital and credit markets; and (14) the risk of currency
fluctuation for those markets in which we operate. These and
other additional factors that may cause actual future events and
results to differ materially from the events and results indicated
in the forward-looking statements above are set forth more fully
under Item 1A “Risk Factors” of the Company’s Annual Report on Form
10-K for the year ended December 31, 2018, filed with the SEC on
February 28, 2019 and the other reports we file from time to time
with the SEC. The Company undertakes no obligation and has no
intention to update these forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors
that may affect such forward-looking statements, except as required
by law.
Use of Non-GAAP Financial
Measures
In addition to financial measures prepared in
accordance with generally accepted accounting principles (GAAP),
this press release also contains non-GAAP financial measures.
Specifically, ATN has Adjusted EBITDA in this release and in the
tables included herein.
Adjusted EBITDA is defined as net income
attributable to ATN stockholders before (gain) loss on disposition
of long-lived assets, restructuring charges, interest, taxes,
depreciation and amortization, transaction-related charges, other
income or expense, loss on damaged assets and other hurricane
charges, net of insurance recovery and net income attributable to
non-controlling interests.
The Company believes that the inclusion of these
non-GAAP financial measures helps investors gain a meaningful
understanding of the Company's core operating results and enhances
the usefulness of comparing such performance with prior periods.
ATN’s management uses these non-GAAP measures, in addition to GAAP
financial measures, as the basis for measuring our core operating
performance and comparing such performance to that of prior
periods. The non-GAAP financial measures included in this press
release are not meant to be considered superior to or a substitute
for results of operations prepared in accordance with GAAP.
Reconciliations of these non-GAAP financial measures used in this
press release to the most directly comparable GAAP financial
measure is set forth in the text of, and the accompanying tables
to, this press release. While our non-GAAP financial measures
are an important tool for financial and operational decision-making
and for evaluating our own operating results over different periods
of time, we urge investors to review the reconciliation of these
financial measures to the comparable GAAP financial measures
included below, and not to rely on any single financial measure to
evaluate our business.
|
|
Table 1 |
|
ATN International, Inc. |
|
Unaudited Condensed Consolidated Balance
Sheets |
|
(in Thousands) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2019 |
2018 |
|
Assets: |
|
|
|
|
Cash and cash
equivalents |
$ |
171,483 |
|
$ |
191,836 |
|
Restricted
cash |
|
1,071 |
|
|
1,071 |
|
Short-term
investments |
|
5,280 |
|
|
393 |
|
Other current
assets |
|
83,310 |
|
|
82,465 |
|
|
|
|
|
|
Total
current assets |
|
261,144 |
|
|
275,765 |
|
|
|
|
|
|
Property, plant
and equipment, net |
|
619,798 |
|
|
626,852 |
|
Operating lease
right-of-use assets |
|
68,185 |
|
|
- |
|
Goodwill and
other intangible assets, net |
|
166,439 |
|
|
166,979 |
|
Other
assets |
|
47,264 |
|
|
37,708 |
|
|
|
|
|
|
Total assets |
$ |
1,162,830 |
|
$ |
1,107,304 |
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
Current portion
of long-term debt |
$ |
4,688 |
|
$ |
4,688 |
|
Taxes
payable |
|
32,099 |
|
|
31,795 |
|
Current portion
of operating lease liabilities |
|
8,351 |
|
|
- |
|
Other current
liabilities |
|
96,179 |
|
|
104,167 |
|
|
|
|
|
|
Total
current liabilities |
|
141,317 |
|
|
140,650 |
|
|
|
|
|
|
Long-term debt,
net of current portion |
$ |
85,380 |
|
$ |
86,294 |
|
Deferred income
taxes |
|
8,362 |
|
|
10,276 |
|
Operating lease
liabilities |
|
58,835 |
|
|
- |
|
Other long-term
liabilities |
|
48,952 |
|
|
46,760 |
|
|
|
|
|
|
Total
long-term liabilities |
|
201,529 |
|
|
143,330 |
|
|
|
|
|
|
Total liabilities |
|
342,846 |
|
|
283,980 |
|
|
|
|
|
|
Total ATN
International, Inc.’s stockholders’ equity |
|
691,021 |
|
|
695,387 |
|
Non-controlling
interests |
|
128,963 |
|
|
127,937 |
|
|
|
|
|
|
Total equity |
|
819,984 |
|
|
823,324 |
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
1,162,830 |
|
$ |
1,107,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2 |
ATN International, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
(in Thousands, Except per Share
Data) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
|
2019 |
|
|
2018 |
|
Revenues: |
|
|
|
|
Wireless |
|
$ |
41,613 |
|
|
$ |
50,548 |
|
Wireline |
|
|
60,197 |
|
|
|
48,096 |
|
Renewable
energy |
|
|
1,490 |
|
|
|
5,831 |
|
Total
revenue |
|
|
103,300 |
|
|
|
104,475 |
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Termination and
access fees |
|
|
27,888 |
|
|
|
25,914 |
|
Engineering and
operations |
|
|
19,032 |
|
|
|
18,152 |
|
Sales, marketing
and customer service |
|
|
9,390 |
|
|
|
8,562 |
|
General and
administrative |
|
|
23,816 |
|
|
|
25,540 |
|
Transaction-related charges |
|
|
40 |
|
|
|
27 |
|
Depreciation and
amortization |
|
|
20,718 |
|
|
|
21,305 |
|
Loss on
disposition of assets |
|
|
302 |
|
|
|
284 |
|
Loss on damaged assets and other hurricane related charges, net of
insurance recovery |
|
|
- |
|
|
|
482 |
|
Total operating
expenses |
|
|
101,186 |
|
|
|
100,266 |
|
|
|
|
|
|
Operating income |
|
|
2,114 |
|
|
|
4,209 |
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
Interest
expense, net |
|
|
(353 |
) |
|
|
(1,838 |
) |
Other income (expense) |
|
|
187 |
|
|
|
(753 |
) |
Other income
(expense), net |
|
|
(166 |
) |
|
|
(2,591 |
) |
|
|
|
|
|
Income before income
taxes |
|
|
1,948 |
|
|
|
1,618 |
|
Income tax
expense |
|
|
1,213 |
|
|
|
3,921 |
|
|
|
|
|
|
Net
Income (Loss) |
|
|
735 |
|
|
|
(2,303 |
) |
|
|
|
|
|
Net
income attributable to non-controlling interests, net |
|
|
(2,316 |
) |
|
|
(3,252 |
) |
|
|
|
|
|
Net loss
attributable to ATN International, Inc. stockholders |
|
$ |
(1,581 |
) |
|
$ |
(5,555 |
) |
|
|
|
|
|
Net loss
per weighted average share attributable to ATN International, Inc.
stockholders: |
|
|
|
|
|
|
|
|
|
Basic Net Loss |
|
$ |
(0.10 |
) |
|
$ |
(0.35 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted Net Loss |
|
$ |
(0.10 |
) |
|
$ |
(0.35 |
) |
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
Basic |
|
|
16,001 |
|
|
|
16,019 |
|
Diluted |
|
|
16,001 |
|
|
|
16,019 |
|
|
|
|
|
|
|
Table 3 |
ATN International, Inc. |
Unaudited Condensed Consolidated Cash Flow
Statement |
(in Thousands) |
|
|
|
Three Months Ended March 31, |
|
2019 |
|
|
2018 |
|
|
|
|
|
Net income
(loss) |
$ |
735 |
|
|
$ |
(2,303 |
) |
Depreciation and
amortization |
|
20,718 |
|
|
|
21,305 |
|
Provision for
doubtful accounts |
|
1,285 |
|
|
|
796 |
|
Loss on
disposition of assets |
|
302 |
|
|
|
284 |
|
Stock-based
compensation |
|
1,306 |
|
|
|
1,576 |
|
Deferred income
taxes |
|
(1,914 |
) |
|
|
(1,089 |
) |
Change in
prepaid and accrued income taxes |
|
6,778 |
|
|
|
3,292 |
|
Change in other
operating assets and liabilities |
|
(10,519 |
) |
|
|
(1,963 |
) |
Other non-cash
activity |
|
79 |
|
|
|
646 |
|
|
|
|
|
Net cash provided by operating activities |
|
18,770 |
|
|
|
22,544 |
|
|
|
|
|
Capital
expenditures |
|
(17,641 |
) |
|
|
(21,041 |
) |
Hurricane
rebuild capital expenditures |
|
(123 |
) |
|
|
(30,851 |
) |
Hurricane
insurance proceeds |
|
- |
|
|
|
34,606 |
|
Purchases of
other investments |
|
(10,000 |
) |
|
|
- |
|
Proceeds from
sale of investments |
|
141 |
|
|
|
4,809 |
|
Purchase of
short-term investments |
|
(5,000 |
) |
|
|
- |
|
Government
grants |
|
- |
|
|
|
5,400 |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(32,623 |
) |
|
|
(7,077 |
) |
|
|
|
|
Dividends paid
on common stock |
|
(2,720 |
) |
|
|
(2,724 |
) |
Distributions to
non-controlling interests |
|
(1,540 |
) |
|
|
(12,424 |
) |
Principal
repayments of term loan |
|
(949 |
) |
|
|
(938 |
) |
Stock-based
compensation share repurchases |
|
(1,569 |
) |
|
|
(2,041 |
) |
Repurchases of
non-controlling interests |
|
(225 |
) |
|
|
(3 |
) |
Investments made
by minority shareholders |
|
488 |
|
|
|
- |
|
|
|
|
|
Net cash used in financing activities |
|
(6,515 |
) |
|
|
(18,130 |
) |
|
|
|
|
Effect of foreign
currency exchange rates on total cash, cash equivalents and
restricted cash |
|
15 |
|
|
|
(31 |
) |
|
|
|
|
Net change in total
cash, cash equivalents and restricted cash |
|
(20,353 |
) |
|
|
(2,694 |
) |
|
|
|
|
Total cash, cash
equivalents and restricted cash, beginning of period |
|
192,907 |
|
|
|
219,890 |
|
|
|
|
|
Total cash, cash
equivalents and restricted cash, end of period |
$ |
172,554 |
|
|
$ |
217,196 |
|
|
|
|
|
|
|
|
|
|
Table 4 |
ATN International, Inc. |
Selected Segment Financial
Information |
(In Thousands) |
|
For the three months ended March 31, 2019 is as
follows: |
|
|
U.S. Telecom |
InternationalTelecom |
RenewableEnergy |
Corporateand
Other * |
Total |
|
|
|
|
|
|
Statement of
Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Wireless |
$ |
20,437 |
|
$ |
21,176 |
|
$ |
- |
|
$ |
- |
|
$ |
41,613 |
|
Wireline |
|
1,056 |
|
|
59,141 |
|
|
- |
|
|
- |
|
|
60,197 |
|
Renewable
Energy |
|
- |
|
|
- |
|
|
1,490 |
|
|
- |
|
|
1,490 |
|
Total Revenue |
$ |
21,493 |
|
$ |
80,317 |
|
$ |
1,490 |
|
$ |
- |
|
$ |
103,300 |
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
(3,506 |
) |
$ |
13,878 |
|
$ |
(203 |
) |
$ |
(8,055 |
) |
$ |
2,114 |
|
Stock-based
compensation |
$ |
- |
|
|
11 |
|
$ |
- |
|
|
1,295 |
|
$ |
1,306 |
|
Non-controlling
interest ( net income or (loss) ) |
$ |
81 |
|
$ |
(2,397 |
) |
$ |
- |
|
$ |
- |
|
$ |
(2,316 |
) |
|
|
|
|
|
|
Non GAAP
measure: |
|
|
|
|
|
Adjusted EBITDA
(1) |
$ |
2,263 |
|
$ |
26,886 |
|
$ |
551 |
|
$ |
(6,526 |
) |
$ |
23,174 |
|
|
|
|
|
|
|
Statement of
Cash Flows Data: |
|
|
|
|
|
Capital
expenditures |
$ |
3,075 |
|
$ |
11,356 |
|
$ |
609 |
|
$ |
2,724 |
|
$ |
17,764 |
|
|
|
|
|
|
|
Balance Sheet
Data (at March 31, 2019): |
|
|
|
|
|
Cash, cash equivalents
and investments |
$ |
14,858 |
|
$ |
40,731 |
|
$ |
56,874 |
|
$ |
64,300 |
|
$ |
176,763 |
|
Total current
assets |
|
38,580 |
|
|
89,785 |
|
|
74,533 |
|
|
58,246 |
|
|
261,144 |
|
Fixed assets, net |
|
75,004 |
|
|
477,147 |
|
|
44,866 |
|
|
22,781 |
|
|
619,798 |
|
Total assets |
|
217,756 |
|
|
648,736 |
|
|
123,624 |
|
|
172,714 |
|
|
1,162,830 |
|
Total current
liabilities |
|
25,517 |
|
|
78,649 |
|
|
2,149 |
|
|
35,002 |
|
|
141,317 |
|
Total debt |
|
- |
|
|
90,068 |
|
|
- |
|
|
- |
|
|
90,068 |
|
|
|
|
|
|
|
ATN International, Inc. |
Selected Segment Financial
Information |
(In Thousands) |
|
|
|
|
|
|
For the three months ended March 31, 2018 is as
follows: |
|
|
U.S. Telecom |
InternationalTelecom |
RenewableEnergy |
Corporateand
Other * |
Total |
|
|
|
|
|
|
Statement of
Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Wireless |
$ |
27,401 |
|
$ |
23,147 |
|
$ |
- |
|
$ |
- |
|
$ |
50,548 |
|
Wireline |
|
1,098 |
|
|
46,998 |
|
|
- |
|
|
- |
|
|
48,096 |
|
Renewable
Energy |
|
- |
|
|
- |
|
|
5,831 |
|
|
- |
|
|
5,831 |
|
Total Revenue |
$ |
28,499 |
|
$ |
70,145 |
|
$ |
5,831 |
|
$ |
- |
|
$ |
104,475 |
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
5,224 |
|
$ |
5,640 |
|
$ |
1,936 |
|
$ |
(8,591 |
) |
$ |
4,209 |
|
Stock-based
compensation |
|
- |
|
|
29 |
|
|
29 |
|
|
1,518 |
|
|
1,576 |
|
Non-controlling
interest ( net income or (loss) ) |
$ |
(683 |
) |
$ |
(2,269 |
) |
$ |
(300 |
) |
$ |
- |
|
$ |
(3,252 |
) |
|
|
|
|
|
|
Non GAAP
measure: |
|
|
|
|
|
Adjusted EBITDA
(1) |
$ |
11,992 |
|
$ |
17,793 |
|
$ |
3,739 |
|
$ |
(7,217 |
) |
$ |
26,307 |
|
|
|
|
|
|
|
Statement of
Cash Flows Data: |
|
|
|
|
|
Capital
expenditures |
$ |
4,751 |
|
$ |
43,995 |
|
$ |
854 |
|
$ |
2,292 |
|
$ |
51,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATN International, Inc. |
Selected Segment Financial
Information |
(In Thousands) |
at December 31, 2018 |
|
|
|
|
|
|
|
U.S. Telecom |
InternationalTelecom |
RenewableEnergy |
Corporateand
Other * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Data (at December 31, 2018): |
|
|
|
|
|
Cash, cash equivalents
and investments |
$ |
19,118 |
|
$ |
32,390 |
|
$ |
62,678 |
|
$ |
78,043 |
|
$ |
192,229 |
|
Total current
assets |
|
36,801 |
|
|
75,304 |
|
|
80,553 |
|
|
83,107 |
|
|
275,765 |
|
Fixed assets, net |
|
78,102 |
|
|
482,770 |
|
|
45,599 |
|
|
20,381 |
|
|
626,852 |
|
Total assets |
|
172,634 |
|
|
622,454 |
|
|
130,427 |
|
|
181,789 |
|
|
1,107,304 |
|
Total current
liabilities |
|
15,783 |
|
|
82,575 |
|
|
3,465 |
|
|
38,827 |
|
|
140,650 |
|
Total debt |
|
- |
|
|
90,970 |
|
|
12 |
|
|
- |
|
|
90,982 |
|
|
|
|
|
|
|
(1) See Table 5 for reconciliation of Net Income to Adjusted
EBITDA |
|
|
|
|
* Corporate and Other refer to corporate overhead
expenses and consolidating adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
|
2018** |
2018** |
2018** |
2018** |
2019 |
|
|
|
|
|
|
U.S. Telecom
Operational Data: |
|
|
|
|
|
Wireless - Total
Domestic Base Stations |
|
1,122 |
|
|
1,121 |
|
|
1,035 |
|
|
1,045 |
|
|
1,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Telecom Operational Data: |
|
|
|
|
|
Wireline - Voice /
Access lines* |
|
165,100 |
|
|
167,900 |
|
|
170,400 |
|
|
171,100 |
|
|
171,200 |
|
Wireline - Data
Subscribers* |
|
112,000 |
|
|
114,900 |
|
|
116,800 |
|
|
119,800 |
|
|
125,600 |
|
Wireline - Video
Subscribers |
|
46,200 |
|
|
45,000 |
|
|
43,600 |
|
|
41,700 |
|
|
41,000 |
|
Wireless -
Subscribers* |
|
309,900 |
|
|
308,600 |
|
|
300,600 |
|
|
300,400 |
|
|
293,500 |
|
|
|
|
|
|
|
*
Subscriber counts were adjusted for all periods presented based
upon a change in methodology |
|
|
|
|
|
|
|
|
**
For the presented 2018 quarters, subscribers for wireline voice,
data and video in the U.S. Virgin Islands are included as active
and in the subscriber count, but many were not billed
post-hurricane |
|
|
|
|
|
|
|
Table 5 |
ATN International, Inc. |
Reconciliation of Non-GAAP
Measures |
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA for the Three Months Ended March 31, 2019 and
2018 |
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
U.S.Telecom |
|
RenewableEnergy |
Corporateand Other * |
Total |
InternationalTelecom |
|
|
|
|
|
|
Net income (loss)attributable to ATN International, Inc.
stockholders |
|
|
|
|
$ |
(1,581 |
) |
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
2,316 |
|
Income tax expense |
|
|
|
|
|
1,213 |
|
Other (income) expense, net |
|
|
|
|
|
(187 |
) |
Interest expense, net |
|
|
|
|
|
353 |
|
Operating
income |
$ |
(3,506 |
) |
$ |
13,878 |
|
$ |
(203 |
) |
$ |
(8,055 |
) |
$ |
2,114 |
|
Depreciation and amortization |
|
5,598 |
|
|
13,015 |
|
|
616 |
|
|
1,489 |
|
|
20,718 |
|
(Gain) Loss on disposition of assets |
|
171 |
|
|
(7 |
) |
|
138 |
|
|
- |
|
|
302 |
|
Transaction-related charges |
|
- |
|
|
- |
|
|
- |
|
|
40 |
|
|
40 |
|
Adjusted EBITDA |
$ |
2,263 |
|
$ |
26,886 |
|
$ |
551 |
|
$ |
(6,526 |
) |
$ |
23,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2018 |
|
U.S. Telecom |
|
RenewableEnergy |
Corporateand Other * |
Total |
InternationalTelecom |
|
|
|
|
|
|
Net Income (loss) attributable to ATN International, Inc.
stockholders |
|
|
|
|
$ |
(5,555 |
) |
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
3,252 |
|
Income tax benefit |
|
|
|
|
|
3,921 |
|
Other expense, net |
|
|
|
|
|
753 |
|
Interest expense, net |
|
|
|
|
|
1,838 |
|
Operating income |
$ |
5,224 |
|
$ |
5,640 |
|
$ |
1,936 |
|
$ |
(8,591 |
) |
$ |
4,209 |
|
Depreciation and amortization |
|
6,513 |
|
|
11,671 |
|
|
1,774 |
|
|
1,347 |
|
|
21,305 |
|
Loss on disposition of assets |
|
255 |
|
|
- |
|
|
29 |
|
|
- |
|
|
284 |
|
Loss on damaged assets and other hurricane related charges , net of
insurance recovery |
|
- |
|
|
482 |
|
|
- |
|
|
- |
|
|
482 |
|
Transaction-related charges |
|
- |
|
|
- |
|
|
- |
|
|
27 |
|
|
27 |
|
Adjusted EBITDA |
$ |
11,992 |
|
$ |
17,793 |
|
$ |
3,739 |
|
$ |
(7,217 |
) |
$ |
26,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Corporate and Other refer to corporate overhead expenses and
consolidating adjustments |
|
|
|
|
|
Contact:
978-619-1300Michael T. PriorChairman andChief Executive Officer
Justin D. BenincasaChief Financial Officer
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