ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a
leading provider of digital infrastructure and communications
services, today reported results for the three and six months ended
June 30, 2022.
“We delivered solid revenues in the second
quarter while at the same time managing a slight uptick in labor
expenses and increased development costs as we continued to invest
in advancing our long-term growth strategy,” said Michael Prior,
Chief Executive Officer of ATN. “After one full year of operating
Alaska Communications, we have expanded our overall U.S.
infrastructure footprint, strengthened our base of recurring
revenues, and increased our topline segment revenues by more than
50% year over year. In addition, by combining forces with the
Alaska team, we have won several significant awards to bring
increased, and more affordable, connectivity to some of the state’s
more rural locations.
“Our Commnet Broadband subsidiary announced
separately today, that we entered into an agreement this week to
acquire Sacred Wind Enterprises, the largest privately owned
broadband company in New Mexico. We view this transaction as a next
step in the transformation of Commnet's legacy wholesale roaming
business. When complete, the combination will expand our core
digital infrastructure footprint, and development pipeline, and
increase the scale of our wholesale carrier, residential, and
business broadband services in the rural Southwest. We expect to
utilize approximately $25.0 million of cash and assume
approximately $32.0 million in debt to close the transaction after
we have obtained regulatory approvals. We do not expect this
business combination to have a meaningful impact on our 2022
operating results, as its closing is currently anticipated to occur
in the fourth quarter of this year. On a standalone basis, we
expect Sacred Wind Enterprises to generate approximately $10
million of EBITDA in 2022.
“Additionally, we are pleased to announce that
we have won a grant for approximately $10 million in support of our
Southern Apache County Fiber to the Home project. Through this
project, we aim to deliver fiber-based broadband to more than
11,000 residents and 4,000 homes and businesses in several
northeastern Arizona communities, many of which suffer from high
unemployment and poverty rates.
“We remain committed to building more core
digital infrastructure and expanding our fiber footprint in the
communities we serve. By focusing on our growth strategy and
putting our customers first, we have continued to advance many of
our key metrics, including homes passed by broadband services,
total broadband customers, and broadband customers served by
networks with speeds of 100 MBPs or greater. On this point, we saw
our broadband homes passed by high-speed networks increase to
nearly 200,000, and are now able to offer more than half of our
broadband customer base high-speed services, driven primarily by
expansion in our International Telecom markets. Overall, we expect
our investments from the first half of 2022 to support our annual
and multi-year revenue and EBITDA growth projections, and we
continue to see ample demand for our cutting-edge solutions,” added
Prior.
Second Quarter 2022 Financial Results
Second quarter 2022 consolidated revenues were
$179.5 million, up 45% compared with $123.9 million in the same
period a year ago. The Company reported operating income of $1.7
million and Adjusted EBITDA2 of $39.2 million compared with an
operating income of $2.9 million and Adjusted EBITDA2 of $25.2
million in the same period a year ago. The increase in revenue and
Adjusted EBITDA2 was mostly driven by the addition of Alaska
Communications' results, partially offset by a decline in legacy
wholesale wireless revenues and increased operating expenses in the
Company’s International Telecom segment. These expenses reflect the
Company’s continued investment in network expansion and
enhancement, along with improving its sales and marketing
capabilities to support future growth. The decrease in operating
income for the quarter includes the impact of the increased
depreciation and amortization expenses from Alaska Communications.
Net loss attributable to ATN stockholders for the second quarter
was $0.5 million, or $0.11 loss per share, compared with net income
attributable to ATN stockholders of $2.0 million, or $0.13 income
per diluted share, in the same period a year ago. The increase in
the net loss for the quarter was driven by the increase in interest
expense from the Alaska Communication’s acquisition and other
expenses related to dissolving a defined benefit pension plan.
Second Quarter 2022 Operating Segment
Results
The Company recorded financial results during
the second quarter of 2022 in three categories: (i) International
Telecom; (ii) US Telecom; and (iii) All Other. For the purposes of
the below presentation, the Company’s Renewable Energy segment has
been combined with the Company’s Corporate segment and Other
segment as “All Other.”
Operating Results (in
Thousands)
For Three Months Ended June 30, 2022 and 2021 |
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
2022 |
2021 |
2022 |
2021 |
2022 |
2021 |
|
|
International |
International |
US |
US |
|
|
Total |
Total |
|
|
Telecom |
Telecom |
Telecom |
Telecom |
All Other* |
All Other* |
ATN |
ATN |
|
Revenue |
$ |
88,406 |
$ |
86,218 |
$ |
91,091 |
|
$ |
37,647 |
|
$ |
- |
|
$ |
- |
|
$ |
179,497 |
$ |
123,865 |
|
Operating Income (Loss) |
$ |
11,645 |
$ |
14,643 |
$ |
(281 |
) |
$ |
(556 |
) |
$ |
(9,642 |
) |
$ |
(11,182 |
) |
$ |
1,722 |
$ |
2,905 |
|
EBITDA1 |
$ |
27,113 |
$ |
28,433 |
$ |
20,338 |
|
$ |
4,523 |
|
$ |
(8,662 |
) |
$ |
(9,896 |
) |
$ |
38,789 |
$ |
23,060 |
|
Adjusted EBITDA2 |
$ |
27,113 |
$ |
28,437 |
$ |
20,650 |
|
$ |
4,545 |
|
$ |
(8,590 |
) |
$ |
(7,783 |
) |
$ |
39,173 |
$ |
25,199 |
|
Capital Expenditures** |
$ |
18,699 |
$ |
11,337 |
$ |
21,709 |
|
$ |
3,854 |
|
$ |
222 |
|
$ |
1,061 |
|
$ |
40,630 |
$ |
16,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Six Months Ended June 30, 2022 and 2021 |
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
2022 |
2021 |
2022 |
2021 |
2022 |
2021 |
|
|
International |
International |
US |
US |
|
|
Total |
Total |
|
|
Telecom |
Telecom |
Telecom |
Telecom |
All Other* |
All Other* |
ATN |
ATN |
|
Revenue |
$ |
175,191 |
$ |
170,036 |
$ |
176,326 |
|
$ |
77,921 |
|
$ |
- |
|
$ |
418 |
|
$ |
351,517 |
$ |
248,375 |
|
Operating Income (Loss) |
$ |
23,450 |
$ |
27,786 |
$ |
(4,914 |
) |
$ |
(1,090 |
) |
$ |
(16,703 |
) |
$ |
(20,442 |
) |
$ |
1,833 |
$ |
6,254 |
|
EBITDA1 |
$ |
53,233 |
$ |
55,402 |
$ |
36,987 |
|
$ |
9,182 |
|
$ |
(14,770 |
) |
$ |
(17,668 |
) |
$ |
75,450 |
$ |
46,916 |
|
Adjusted EBITDA2 |
$ |
54,264 |
$ |
55,405 |
$ |
40,229 |
|
$ |
9,193 |
|
$ |
(14,685 |
) |
$ |
(14,695 |
) |
$ |
79,808 |
$ |
49,903 |
|
Capital Expenditures** |
$ |
33,870 |
$ |
21,843 |
$ |
40,804 |
|
$ |
18,792 |
|
$ |
424 |
|
$ |
1,297 |
|
$ |
75,098 |
$ |
41,932 |
|
|
|
|
|
|
|
|
|
|
|
*For this table presentation, the Renewable
Energy segment results and Corporate and Other segment results were
combined. See table 4 for the separate presentation of the
financial performance of these segments.
**Includes reimbursable capital expenditures of
$3.7 million and $3.9 million for the three and six months ended
June 30, 2022, respectively, and reimbursable capital expenditures
of $0.3 million and $6.5 million for the three and six months ended
June 30, 2021, respectively.
International Telecom
International Telecom revenues3 were $88.4
million for the quarter, up 3% year over year. This increase was
mainly due to mobile subscriber growth and higher carrier services
revenue, which resulted from increased travel and tourism in the
U.S. Virgin Islands and Bermuda. The increase in segment revenues
was partially offset by a scheduled step down in federal high-cost
support subsidies for the U.S. Virgin Islands. Operating expenses
for the quarter increased incrementally year over year as the
Company invested in expanding and enhancing its networks and sales
and marketing capabilities to expand its subscriber base. Operating
income was $11.6 million and Adjusted EBITDA2 was $27.1 million in
the quarter, compared with operating income of $14.6 million and
Adjusted EBITDA2 of $28.4 million in the prior year period. The
year-over-year changes in operating income and Adjusted EBITDA2
were mainly due to higher operating expenditures, which offset the
increase in total segment revenues.
US Telecom
US Telecom segment revenues4 were $91.1 million
in the quarter, more than doubling from $37.6 million in the prior
year period. Business and carrier services revenues accounted for
approximately 70% of the segment’s services revenues in the second
quarter of 2022. Operating loss was $0.3 million compared with $0.6
million in the same period a year ago. Adjusted EBITDA2 was $20.7
million in the quarter compared with $4.5 million in the same
period a year ago. The increase in segment revenue and Adjusted
EBITDA2 was mainly due to the consolidation of Alaska
Communications, partially offset by the reduction in legacy
wholesale wireless revenues.
By the end of the second quarter of 2022, the
Company had completed and activated approximately 65% of the total
sites related to the network build portion of its long-term
FirstNet Agreement. The Company now expects to complete an
additional 20% of the total build by the end of 2022 with
completion of remainder of the sites in early 2023. Revenues from
the build will be largely offset by construction costs incurred in
the same period.
Balance Sheet and Cash Flow
Highlights
As of June 30, 2022, the Company had total cash,
cash equivalents and restricted cash of $72.2 million, compared
with $80.7 million as of December 31, 2021.
Net cash provided by operating activities was
$50.7 million for the six months ended June 30, 2022, compared with
$27.5 million for the six months ended June 30, 2021. The
year-over-year increase in operating cash flow was due to the
increase in EBITDA for the first six months of 2022, which offset
net uses of working capital. For the six months ended June 30,
2022, the Company used net cash of $59.3 million for investing and
financing activities, compared to $36.5 million for the six months
ended June 30, 2021. The net use of cash was primarily attributable
to $75.1 million in capital expenditures, $4.5 million of purchases
of minority equity interests in the Company’s subsidiaries and $7.5
million in dividends to Company stockholders and repurchases of
Company common stock. These uses of cash were partially offset by
net borrowings of $24.5 million under revolving credit
agreements.
Quarterly Dividends and Stock
Buybacks
On June 13, 2022, ATN announced that its Board
of Directors had declared a quarterly dividend of $0.17 per share,
payable on July 8, 2022, on all common shares outstanding to
stockholders of record as of June 30, 2022. For the six months
ended June 30, 2022, the Company utilized cash on hand to
repurchase $0.9 million in common stock.
2022 Guidance and OutlookThe
Company is reiterating its outlook for 2022 financial performance
and its targets to be achieved in the three-year period ending in
2024, originally provided on February 23, 2022, within its fourth
quarter and full year 2021 earnings release. The foundation of the
Company’s full year 2022 financial targets is based on continued
capital investments in the range of $150 to $160 million (net of
reimbursed amounts), primarily in network expansion and upgrades,
which are expected to drive subscriber and revenue growth in the
following periods. The Company continues to expect its Adjusted
EBITDA levels to increase in the second half of 2022 and to be in
the range of $165 to $170 million for the full year5.
Strategic Progress Highlights
The Company believes that its Glass and Steel™
and “first-to-fiber” market strategies are important for its
long-term success and sees a rapidly growing need for more
bandwidth and reliable connectivity. Deploying capital for growth
in fiber and fiber-fed high-speed data solutions to more homes,
businesses, schools, cell sites, and communities, inclusive of the
Company’s acquisition of Alaska Communications, has led to
increases in the Company’s fiber footprint and broadband subscriber
levels.
From January 1, 2020, to the present, the
Company has:
- Added 306,000 premises passed by
broadband, with 36,000 of the total group passed by higher-speed
solutions6 .
- Added approximately 65,200
broadband subscribers.
- Increased terrestrial fiber
facilities by adding over 6,370 route miles.
- Expanded mobile data capacity in
all markets and added approximately 62,800 mobile subscribers.
Conference Call Information
ATN will host a conference call on Thursday, July 28, 2022, at
10:00 a.m. Eastern Time (ET) to discuss its second quarter results
and business outlook. The call will be hosted by Michael Prior,
Chairman and Chief Executive Officer, and Justin Benincasa, Chief
Financial Officer. Key details regarding the call are as
follows:
Call Date: Thursday, July 28,
2022Call Time: 10:00 a.m. ETWebcast
Link: https://edge.media-server.com/mmc/p/mhsoowk7Live
Call Participant
Link: https://register.vevent.com/register/BI58f382e1d9c744529bb8c9941529aab2
Webcast Link InstructionsYou can listen to a
live audio webcast of the conference call by visiting the “Webcast
Link” above or the "Events & Presentations" section of the
Company's Investor Relations website
at https://ir.atni.com/events-and-presentations. A replay of
the conference call will be available at the same locations
beginning at approximately 1:00 pm ET on the same day.
The Company also will provide an investor presentation as a
supplement to the call on the “Events & Presentations” section
of its Investor Relations website.
Live Call Participant InstructionsTo
participate in the live call, you must register using the “Live
Call Participant Link” above. Once registered, you will receive
dial-in numbers and a unique PIN number. When you dial in, you will
input your PIN and be routed into the call. If you register and
forget your PIN, or lose the registration confirmation email,
simply re-register to receive a new PIN.
About ATN
ATN International, Inc. (Nasdaq: ATNI),
headquartered in Beverly, Massachusetts, is a provider of digital
infrastructure and communications services in the United States and
internationally, including the Caribbean region, with a focus on
rural and remote markets with a growing demand for infrastructure
investments. The Company’s operating subsidiaries today primarily
provide: (i) advanced wireless and wireline connectivity to
residential, business and government customers, including a range
of high-speed Internet and data services, fixed and mobile wireless
solutions, and video and voice services; and (ii) carrier and
enterprise communications services, such as terrestrial and
submarine fiber optic transport, and communications tower
facilities. 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, the Company’s future
financial performance, business goals and objectives, and results
of operations, expectations regarding the transition of its US
Telecom business, its future revenues, operating income, EBITDA,
Adjusted EBITDA, and capital investments; demand for the Company’s
services and industry trends; construction progress under the
Company’s FirstNet agreement and the effect such progress will have
on the Company’s financial results; the Company’s receipt of
certain grant awards; the Company’s anticipated acquisition of
Sacred Wind Enterprises and related business impacts; expectations
regarding the benefits of the Company’s acquisition of Alaska
Communications; the Company’s liquidity; the organization of the
Company’s business; 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 Company’s ability to successfully transition its US Telecom
business away from wholesale wireless to other carrier and
consumer-based services; (2) the general performance of the
Company’s operations, including operating margins, revenues,
capital expenditures, and the retention of and future growth of the
Company’s subscriber base and ARPU; (3) the Company’s ability to
realize cost synergies and expansion plans for its Alaska
Communications business; (4) the Company’s ability to satisfy the
needs and demands of the Company’s major carrier customers; (5) the
Company’s ability to efficiently and cost-effectively upgrade the
Company’s networks and information technology platforms to
address rapid and significant technological changes in the
telecommunications industry; (6) government subsidy program
availability and regulation of the Company’s businesses, which may
impact the Company’s telecommunications licenses, the Company’s
revenue and the Company’s operating costs; (7) the Company’s
reliance on a limited number of key suppliers and vendors for
timely supply of equipment and services relating to the Company’s
network infrastructure; (8) economic, political and other risks and
opportunities facing the Company’s operations, including those
resulting from the pandemic, geopolitical tensions, including the
Ukraine invasion, and inflation, including increased costs and
supply chain disruptions; (9) the loss of, or an inability to
recruit skilled personnel in the Company’s various jurisdictions,
including key members of management; (10) the Company’s ability to
find investment or acquisition or disposition opportunities that
fit the strategic goals of the Company; (11) the occurrence of
weather events and natural catastrophes and the Company’s ability
to secure the appropriate level of insurance coverage for these
assets; (12) increased competition; (13) the adequacy and expansion
capabilities of the Company’s network capacity and customer service
system to support the Company’s customer growth; and, (14) the
Company’s continued access to capital and credit markets; and (15)
the Company’s ability to successfully complete its pending
acquisition of Sacred Wind Enterprises and recognize the expected
benefits of such acquisition. 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, 2021, filed with the SEC on March
16, 2022, and the other reports the Company files 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, the Company has included EBITDA, Adjusted EBITDA and
Net Debt Ratio in this release and in the tables included
herein.
EBITDA is defined as operating income (loss)
before depreciation and amortization expense. The Company has
defined Adjusted EBITDA as operating income (loss) before
depreciation and amortization expense, transaction-related charges,
one-time impairment or special charges and the gain (loss) on
disposition of assets. Net Debt Ratio is defined as total debt less
cash and cash equivalents divided by the four quarters ended total
Adjusted EBITDA at the measurement date. 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. Management uses these non-GAAP measures, in
addition to GAAP financial measures, as the basis for measuring the
Company’s 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 to the
most directly comparable GAAP financial measures are set forth in
the text of, and the accompanying tables to, this press release.
While non-GAAP financial measures are an important tool for
financial and operational decision-making and for evaluating the
Company’s own operating results over different periods of time, the
Company urges 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 its business.
Contact:
Justin D. BenincasaChief Financial OfficerATN
International, Inc.978-619-1300
Polly Pearson Investor Relations
ATNI@investorrelations.com
|
Table
1 |
|
ATN
International, Inc. |
|
Unaudited
Condensed Consolidated Balance Sheets |
|
(in Thousands) |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2022 |
2021 |
Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
71,061 |
|
$ |
79,601 |
|
Restricted
cash |
|
1,099 |
|
|
1,096 |
|
Customer
receivable |
|
6,239 |
|
|
4,145 |
|
Other
current assets |
|
145,881 |
|
|
147,775 |
|
|
|
|
|
|
Total
current assets |
|
224,280 |
|
|
232,617 |
|
|
|
|
|
|
Property,
plant and equipment, net |
|
940,273 |
|
|
943,209 |
|
Operating
lease right-of-use assets |
|
115,103 |
|
|
118,843 |
|
Customer
receivable - long term |
|
39,855 |
|
|
39,652 |
|
Goodwill and
other intangible assets, net |
|
191,718 |
|
|
198,164 |
|
Other
assets |
|
84,525 |
|
|
76,119 |
|
|
|
|
|
Total assets |
$ |
1,595,754 |
|
$ |
1,608,604 |
|
|
|
|
|
Liabilities, Redeemable Non-controlling interests and Stockholders’
Equity: |
|
|
|
Current portion of long-term debt |
$ |
3,759 |
|
$ |
4,665 |
|
Current
portion of customer receivable credit facility |
|
5,326 |
|
|
4,620 |
|
Taxes
payable |
|
9,261 |
|
|
5,681 |
|
Current
portion of lease liabilities |
|
16,779 |
|
|
16,201 |
|
Other
current liabilities |
|
168,659 |
|
|
189,777 |
|
|
|
|
|
|
Total
current liabilities |
|
203,784 |
|
|
220,944 |
|
|
|
|
|
|
Long-term
debt, net of current portion |
$ |
352,319 |
|
$ |
327,111 |
|
Customer
receivable credit facility, net of current portion |
|
35,243 |
|
|
30,148 |
|
Deferred
income taxes |
|
18,400 |
|
|
21,460 |
|
Lease
liabilities |
|
88,828 |
|
|
91,719 |
|
Other
long-term liabilities |
|
135,103 |
|
|
142,033 |
|
|
|
|
|
Total liabilities |
|
833,677 |
|
|
833,415 |
|
|
|
|
|
Redeemable Non-controlling interests |
|
75,205 |
|
|
72,936 |
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
Total ATN
International, Inc.’s stockholders’ equity |
|
591,120 |
|
|
601,250 |
|
Non-controlling interests |
|
95,752 |
|
|
101,003 |
|
|
|
|
|
Total stockholders' equity |
|
686,872 |
|
|
702,253 |
|
|
|
|
|
Total liabilities, Redeemable Non-controlling interests and
stockholders’ equity |
$ |
1,595,754 |
|
$ |
1,608,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2 |
|
ATN
International, Inc. |
|
Unaudited
Condensed Consolidated Statements of Operations |
|
(in
Thousands, Except per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues: |
|
|
|
|
|
|
|
|
|
Communications services |
|
$ |
171,795 |
|
|
$ |
112,964 |
|
|
$ |
338,338 |
|
|
$ |
223,599 |
|
|
Construction |
|
|
3,297 |
|
|
|
9,325 |
|
|
|
5,283 |
|
|
|
21,632 |
|
|
Other |
|
|
4,405 |
|
|
|
1,576 |
|
|
|
7,896 |
|
|
|
3,144 |
|
|
Total
revenue |
|
|
179,497 |
|
|
|
123,865 |
|
|
|
351,517 |
|
|
|
248,375 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (excluding depreciation and
amortization unless otherwise indicated): |
|
|
|
|
|
|
|
|
|
Cost of
services and other |
|
|
77,860 |
|
|
|
48,479 |
|
|
|
150,871 |
|
|
|
97,986 |
|
|
Cost of
construction revenue |
|
|
3,286 |
|
|
|
9,535 |
|
|
|
5,319 |
|
|
|
22,142 |
|
|
Selling,
general and administrative |
|
|
59,178 |
|
|
|
40,652 |
|
|
|
115,519 |
|
|
|
78,344 |
|
|
Transaction-related charges |
|
|
412 |
|
|
|
1,396 |
|
|
|
966 |
|
|
|
2,126 |
|
|
Depreciation |
|
|
33,817 |
|
|
|
19,739 |
|
|
|
67,109 |
|
|
|
39,849 |
|
|
Amortization
of intangibles from acquisitions |
|
|
3,250 |
|
|
|
416 |
|
|
|
6,508 |
|
|
|
813 |
|
|
Loss on
disposition of assets |
|
|
(28 |
) |
|
|
743 |
|
|
|
3,392 |
|
|
|
861 |
|
Total operating expenses |
|
|
177,775 |
|
|
|
120,960 |
|
|
|
349,684 |
|
|
|
242,121 |
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
1,722 |
|
|
|
2,905 |
|
|
|
1,833 |
|
|
|
6,254 |
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(4,278 |
) |
|
|
(1,091 |
) |
|
|
(7,590 |
) |
|
|
(2,245 |
) |
|
Other income
(expense) |
|
|
(2,724 |
) |
|
|
(66 |
) |
|
|
1,474 |
|
|
|
2,309 |
|
|
Other
income, net |
|
|
(7,002 |
) |
|
|
(1,157 |
) |
|
|
(6,116 |
) |
|
|
64 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
(5,280 |
) |
|
|
1,748 |
|
|
|
(4,283 |
) |
|
|
6,318 |
|
|
Income tax
expense (benefit) |
|
|
(3,971 |
) |
|
|
(1,542 |
) |
|
|
(1,018 |
) |
|
|
(1,247 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(1,309 |
) |
|
|
3,290 |
|
|
|
(3,265 |
) |
|
|
7,565 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to non-controlling
interests, net |
|
|
784 |
|
|
|
(1,271 |
) |
|
|
1,794 |
|
|
|
(2,842 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to ATN
International, Inc. stockholders |
|
$ |
(525 |
) |
|
$ |
2,019 |
|
|
$ |
(1,471 |
) |
|
$ |
4,723 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per weighted average share
attributable to ATN International, Inc. stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net
Income (loss) |
|
$ |
(0.11 |
) |
|
$ |
0.13 |
|
|
$ |
(0.24 |
) |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net
Income (loss) |
|
$ |
(0.11 |
) |
|
$ |
0.13 |
|
|
$ |
(0.24 |
) |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
15,749 |
|
|
|
15,912 |
|
|
|
15,736 |
|
|
|
15,907 |
|
|
Diluted |
|
|
15,749 |
|
|
|
15,921 |
|
|
|
15,736 |
|
|
|
15,930 |
|
|
|
|
|
|
|
|
|
|
|
Table
3 |
ATN
International, Inc. |
Unaudited
Condensed Consolidated Cash Flow Statement |
(in Thousands) |
|
|
|
Six Months Ended June 30, |
|
2022 |
|
2021 |
|
|
|
|
Net income (loss) |
$ |
(3,265 |
) |
|
$ |
7,565 |
|
Depreciation |
|
67,109 |
|
|
|
39,850 |
|
Amortization
of intangibles from acquisitions |
|
6,508 |
|
|
|
812 |
|
Provision
for doubtful accounts |
|
3,153 |
|
|
|
2,299 |
|
Amortization
of debt discount and debt issuance costs |
|
1,004 |
|
|
|
337 |
|
Loss on
disposition of long-lived assets |
|
3,392 |
|
|
|
861 |
|
Stock-based
compensation |
|
4,028 |
|
|
|
3,511 |
|
Deferred
income taxes |
|
(3,871 |
) |
|
|
(3,236 |
) |
(Gain) loss
on equity investments |
|
(3,401 |
) |
|
|
(1,793 |
) |
Loss on
pension settlement |
|
1,725 |
|
|
|
- |
|
Unrealized
(gain) loss on foreign currency |
|
- |
|
|
|
(81 |
) |
Increase in
customer receivable |
|
(2,298 |
) |
|
|
(21,586 |
) |
Change in
prepaid and accrued income taxes |
|
9,433 |
|
|
|
(1,360 |
) |
Change in
other operating assets and liabilities |
|
(32,797 |
) |
|
|
281 |
|
|
|
|
|
Net cash provided by operating activities |
|
50,720 |
|
|
|
27,460 |
|
|
|
|
|
Capital
expenditures |
|
(71,204 |
) |
|
|
(35,424 |
) |
Reimbursable
capital expenditures |
|
(3,894 |
) |
|
|
(6,508 |
) |
Purchases of
strategic investments |
|
(1,400 |
) |
|
|
(5,242 |
) |
Receipt of
government grants |
|
- |
|
|
|
3,292 |
|
Sale of
business, net of transferred cash of $0 and $0.9 million,
respectively |
|
1,835 |
|
|
|
18,597 |
|
|
|
|
|
Net cash used in investing activities |
|
(74,663 |
) |
|
|
(25,285 |
) |
|
|
|
|
Dividends
paid on common stock |
|
(5,348 |
) |
|
|
(5,411 |
) |
Distributions to non-controlling interests |
|
(1,375 |
) |
|
|
(4,488 |
) |
Finance
leases |
|
(574 |
) |
|
|
- |
|
Term loan -
repayments |
|
(938 |
) |
|
|
(1,883 |
) |
Revolving
credit facility – borrowings |
|
49,000 |
|
|
|
- |
|
Revolving
credit facility – repayments |
|
(24,500 |
) |
|
|
- |
|
Proceeds
from customer receivable credit facility |
|
8,000 |
|
|
|
17,582 |
|
Repayment of
customer receivable credit facility |
|
(2,258 |
) |
|
|
(384 |
) |
Purchases of
common stock - stock-based compensation |
|
(1,169 |
) |
|
|
(1,713 |
) |
Purchases of
common stock - share repurchase plan |
|
(941 |
) |
|
|
(2,219 |
) |
Repurchases
of non-controlling interests, net |
|
(4,491 |
) |
|
|
(12,699 |
) |
|
|
|
|
Net cash provided by (used in) financing activities |
|
15,406 |
|
|
|
(11,215 |
) |
|
|
|
|
Net change
in total cash, cash equivalents and restricted cash |
|
(8,537 |
) |
|
|
(9,040 |
) |
|
|
|
|
Total cash,
cash equivalents and restricted cash, beginning of period |
|
80,697 |
|
|
|
104,997 |
|
|
|
|
|
Total cash,
cash equivalents and restricted cash, end of period |
$ |
72,160 |
|
|
$ |
95,957 |
|
|
|
|
|
|
|
|
|
|
Table 4 |
ATN
International, Inc. |
Selected
Segment Financial Information |
(In
Thousands) |
|
|
|
|
|
|
For the three months ended June 30, 2022 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
Statement of Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Mobility |
|
|
|
|
|
Business |
$ |
3,675 |
|
$ |
301 |
|
$ |
- |
|
$ |
- |
|
$ |
3,976 |
|
Consumer |
|
21,279 |
|
|
1,549 |
|
|
- |
|
|
- |
|
|
22,828 |
|
Total |
$ |
24,954 |
|
$ |
1,850 |
|
$ |
- |
|
$ |
- |
|
$ |
26,804 |
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
Business |
$ |
16,996 |
|
$ |
31,866 |
|
$ |
- |
|
$ |
- |
|
$ |
48,862 |
|
Consumer |
|
41,353 |
|
|
19,166 |
|
|
- |
|
|
- |
|
|
60,519 |
|
Total |
$ |
58,349 |
|
$ |
51,032 |
|
$ |
- |
|
$ |
- |
|
$ |
109,381 |
|
|
|
|
|
|
|
Carrier Services |
$ |
3,421 |
|
$ |
31,753 |
|
$ |
- |
|
$ |
- |
|
$ |
35,174 |
|
Other |
|
436 |
|
|
- |
|
|
- |
|
|
- |
|
|
436 |
|
|
|
|
|
|
|
Total Communications Services |
$ |
87,160 |
|
$ |
84,635 |
|
$ |
- |
|
$ |
- |
|
$ |
171,795 |
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
3,297 |
|
$ |
- |
|
$ |
- |
|
$ |
3,297 |
|
|
|
|
|
|
|
Managed services |
$ |
1,246 |
|
$ |
3,159 |
|
$ |
- |
|
$ |
- |
|
$ |
4,405 |
|
Total Other |
$ |
1,246 |
|
$ |
3,159 |
|
$ |
- |
|
$ |
- |
|
$ |
4,405 |
|
|
|
|
|
|
|
Total Revenue |
$ |
88,406 |
|
$ |
91,091 |
|
$ |
- |
|
$ |
- |
|
$ |
179,497 |
|
|
|
|
|
|
|
Depreciation |
$ |
15,074 |
|
$ |
17,763 |
|
$ |
- |
|
$ |
980 |
|
$ |
33,817 |
|
Amortization
of intangibles from acquisitions |
$ |
394 |
|
$ |
2,856 |
|
$ |
- |
|
$ |
- |
|
$ |
3,250 |
|
Total
operating expenses |
$ |
76,761 |
|
$ |
91,372 |
|
$ |
22 |
|
$ |
9,620 |
|
$ |
177,775 |
|
Operating
income (loss) |
$ |
11,645 |
|
$ |
(281 |
) |
$ |
(22 |
) |
$ |
(9,620 |
) |
$ |
1,722 |
|
Stock-based
compensation |
$ |
56 |
|
$ |
79 |
|
$ |
- |
|
$ |
2,433 |
|
$ |
2,568 |
|
Non-controlling interest ( net income or (loss) ) |
$ |
(921 |
) |
$ |
1,705 |
|
$ |
- |
|
$ |
- |
|
$ |
784 |
|
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
EBITDA
(1) |
$ |
27,113 |
|
$ |
20,338 |
|
$ |
(22 |
) |
$ |
(8,640 |
) |
$ |
38,789 |
|
Adjusted
EBITDA (2) |
$ |
27,113 |
|
$ |
20,650 |
|
$ |
(22 |
) |
$ |
(8,568 |
) |
$ |
39,173 |
|
|
|
|
|
|
|
Balance Sheet Data (at June 30, 2022): |
|
|
|
|
|
Cash, cash
equivalents and investments |
$ |
36,472 |
|
$ |
26,867 |
|
$ |
133 |
|
$ |
7,889 |
|
$ |
71,361 |
|
Total
current assets |
|
107,004 |
|
|
108,005 |
|
|
1,243 |
|
|
8,028 |
|
|
224,280 |
|
Fixed
assets, net |
|
453,245 |
|
|
478,443 |
|
|
- |
|
|
8,585 |
|
|
940,273 |
|
Total
assets |
|
632,399 |
|
|
864,324 |
|
|
14,970 |
|
|
84,061 |
|
|
1,595,754 |
|
Total
current liabilities |
|
85,703 |
|
|
91,138 |
|
|
356 |
|
|
26,587 |
|
|
203,784 |
|
Total
debt |
|
63,378 |
|
|
255,269 |
|
|
- |
|
|
78,000 |
|
|
396,647 |
|
|
|
|
|
|
|
* Corporate and Other
refer to corporate overhead expenses and consolidating
adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATN
International, Inc. |
Selected
Segment Financial Information |
(In
Thousands) |
|
|
|
|
|
|
For the three months ended June 30, 2021 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
Statement of Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Mobility |
|
|
|
|
|
Business |
$ |
1,298 |
|
$ |
342 |
|
$ |
- |
|
$ |
- |
|
$ |
1,640 |
|
Consumer |
|
21,456 |
|
|
2,065 |
|
|
- |
|
|
- |
|
|
23,521 |
|
Total |
$ |
22,754 |
|
$ |
2,407 |
|
$ |
- |
|
$ |
- |
|
$ |
25,161 |
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
Business |
$ |
16,855 |
|
$ |
2,031 |
|
$ |
- |
|
$ |
- |
|
$ |
18,886 |
|
Consumer |
|
42,271 |
|
|
3,846 |
|
|
- |
|
|
- |
|
|
46,117 |
|
Total |
$ |
59,126 |
|
$ |
5,877 |
|
$ |
- |
|
$ |
- |
|
$ |
65,003 |
|
|
|
|
|
|
|
Carrier Services |
$ |
2,523 |
|
$ |
20,038 |
|
$ |
- |
|
$ |
- |
|
$ |
22,561 |
|
Other |
|
239 |
|
|
- |
|
|
- |
|
|
- |
|
|
239 |
|
|
|
|
|
|
|
Total Communications Services |
$ |
84,642 |
|
$ |
28,322 |
|
$ |
- |
|
$ |
- |
|
$ |
112,964 |
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
9,325 |
|
$ |
- |
|
$ |
- |
|
$ |
9,325 |
|
|
|
|
|
|
|
Renewable Energy |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
Managed services |
|
1,576 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,576 |
|
|
|
|
|
|
|
Total Other |
$ |
1,576 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
1,576 |
|
|
|
|
|
|
|
Total Revenue |
$ |
86,218 |
|
$ |
37,647 |
|
$ |
- |
|
$ |
- |
|
$ |
123,865 |
|
|
|
|
|
|
|
Depreciation |
$ |
13,374 |
|
$ |
5,079 |
|
$ |
- |
|
$ |
1,286 |
|
$ |
19,739 |
|
Amortization
of intangibles from acquisitions |
$ |
416 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
416 |
|
Total
operating expenses |
$ |
71,575 |
|
$ |
38,203 |
|
$ |
771 |
|
$ |
10,411 |
|
$ |
120,960 |
|
Operating
income (loss) |
$ |
14,643 |
|
$ |
(556 |
) |
$ |
(771 |
) |
$ |
(10,411 |
) |
$ |
2,905 |
|
Stock-based
compensation |
$ |
10 |
|
$ |
- |
|
$ |
- |
|
$ |
2,165 |
|
$ |
2,175 |
|
Non-controlling interest ( net income or (loss) ) |
$ |
(1,829 |
) |
$ |
558 |
|
$ |
- |
|
$ |
- |
|
$ |
(1,271 |
) |
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
EBITDA
(1) |
$ |
28,433 |
|
$ |
4,523 |
|
$ |
(771 |
) |
$ |
(9,125 |
) |
$ |
23,060 |
|
Adjusted
EBITDA (2) |
$ |
28,437 |
|
$ |
4,545 |
|
$ |
(54 |
) |
$ |
(7,729 |
) |
$ |
25,199 |
|
|
|
|
|
|
|
* Corporate and Other
refer to corporate overhead expenses and consolidating
adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATN
International, Inc. |
Selected
Segment Financial Information |
(In
Thousands) |
|
|
|
|
|
|
For the six months ended June 30, 2022 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
Statement of Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Mobility |
|
|
|
|
|
Business |
$ |
7,291 |
|
$ |
674 |
|
$ |
- |
|
$ |
- |
|
$ |
7,965 |
|
Consumer |
|
41,249 |
|
|
3,006 |
|
|
- |
|
|
- |
|
|
44,255 |
|
Total |
$ |
48,540 |
|
$ |
3,680 |
|
$ |
- |
|
$ |
- |
|
$ |
52,220 |
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
Business |
$ |
34,250 |
|
$ |
59,011 |
|
$ |
- |
|
$ |
- |
|
$ |
93,261 |
|
Consumer |
|
82,446 |
|
|
38,136 |
|
|
- |
|
|
- |
|
|
120,582 |
|
Total |
$ |
116,696 |
|
$ |
97,147 |
|
$ |
- |
|
$ |
- |
|
$ |
213,843 |
|
|
|
|
|
|
|
Carrier Services |
$ |
6,823 |
|
$ |
64,742 |
|
$ |
- |
|
$ |
- |
|
$ |
71,565 |
|
Other |
|
710 |
|
|
- |
|
|
- |
|
|
- |
|
|
710 |
|
|
|
|
|
|
|
Total Communications Services |
$ |
172,769 |
|
$ |
165,569 |
|
$ |
- |
|
$ |
- |
|
$ |
338,338 |
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
5,283 |
|
$ |
- |
|
$ |
- |
|
$ |
5,283 |
|
|
|
|
|
|
|
Managed services |
$ |
2,422 |
|
$ |
5,474 |
|
$ |
- |
|
$ |
- |
|
$ |
7,896 |
|
Total Other |
$ |
2,422 |
|
$ |
5,474 |
|
$ |
- |
|
$ |
- |
|
$ |
7,896 |
|
|
|
|
|
|
|
Total Revenue |
$ |
175,191 |
|
$ |
176,326 |
|
$ |
- |
|
$ |
- |
|
$ |
351,517 |
|
|
|
|
|
|
|
Depreciation |
$ |
28,971 |
|
$ |
36,205 |
|
$ |
- |
|
$ |
1,933 |
|
$ |
67,109 |
|
Amortization
of intangibles from acquisitions |
$ |
812 |
|
$ |
5,696 |
|
$ |
- |
|
$ |
- |
|
$ |
6,508 |
|
Total
operating expenses |
$ |
151,741 |
|
$ |
181,240 |
|
$ |
45 |
|
$ |
16,658 |
|
$ |
349,684 |
|
Operating
income (loss) |
$ |
23,450 |
|
$ |
(4,914 |
) |
$ |
(45 |
) |
$ |
(16,658 |
) |
$ |
1,833 |
|
Stock-based
compensation |
$ |
116 |
|
$ |
169 |
|
$ |
- |
|
$ |
3,743 |
|
$ |
4,028 |
|
Non-controlling interest ( net income or (loss) ) |
$ |
(2,440 |
) |
$ |
4,234 |
|
$ |
- |
|
$ |
- |
|
$ |
1,794 |
|
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
EBITDA
(1) |
$ |
53,233 |
|
$ |
36,987 |
|
$ |
(45 |
) |
$ |
(14,725 |
) |
$ |
75,450 |
|
Adjusted
EBITDA (2) |
$ |
54,264 |
|
$ |
40,229 |
|
$ |
(45 |
) |
$ |
(14,640 |
) |
$ |
79,808 |
|
|
|
|
|
|
|
* Corporate and Other
refer to corporate overhead expenses and consolidating
adjustments |
|
|
|
|
|
|
|
|
ATN
International, Inc. |
Selected
Segment Financial Information |
(In
Thousands) |
|
|
|
|
|
|
For the six months ended June 30, 2021 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
Statement of Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Mobility |
|
|
|
|
|
Business |
$ |
2,495 |
|
$ |
918 |
|
$ |
- |
|
$ |
- |
|
$ |
3,413 |
|
Consumer |
|
42,080 |
|
|
4,349 |
|
|
- |
|
|
- |
|
|
46,429 |
|
Total |
$ |
44,575 |
|
$ |
5,267 |
|
$ |
- |
|
$ |
- |
|
$ |
49,842 |
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
Business |
$ |
33,488 |
|
$ |
4,728 |
|
$ |
- |
|
$ |
- |
|
$ |
38,216 |
|
Consumer |
|
84,385 |
|
|
7,520 |
|
|
- |
|
|
- |
|
|
91,905 |
|
Total |
$ |
117,873 |
|
$ |
12,248 |
|
$ |
- |
|
$ |
- |
|
$ |
130,121 |
|
|
|
|
|
|
|
Carrier Services |
$ |
4,406 |
|
$ |
38,774 |
|
$ |
- |
|
$ |
- |
|
$ |
43,180 |
|
Other |
|
456 |
|
|
- |
|
|
- |
|
|
- |
|
|
456 |
|
|
|
|
|
|
|
Total Communications Services |
$ |
167,310 |
|
$ |
56,289 |
|
$ |
- |
|
$ |
- |
|
$ |
223,599 |
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
21,632 |
|
$ |
- |
|
$ |
- |
|
$ |
21,632 |
|
|
|
|
|
|
|
Renewable Energy |
$ |
- |
|
$ |
- |
|
$ |
418 |
|
$ |
- |
|
$ |
418 |
|
Managed services |
|
2,726 |
|
|
- |
|
|
- |
|
|
- |
|
|
2,726 |
|
|
|
|
|
|
|
Total Other |
$ |
2,726 |
|
$ |
- |
|
$ |
418 |
|
$ |
- |
|
$ |
3,144 |
|
|
|
|
|
|
|
Total Revenue |
$ |
170,036 |
|
$ |
77,921 |
|
$ |
418 |
|
$ |
- |
|
$ |
248,375 |
|
|
|
|
|
|
|
Depreciation |
$ |
26,803 |
|
$ |
10,272 |
|
$ |
188 |
|
$ |
2,586 |
|
$ |
39,849 |
|
Amortization
of intangibles from acquisitions |
$ |
813 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
813 |
|
Total
operating expenses |
$ |
142,250 |
|
$ |
79,011 |
|
$ |
1,851 |
|
$ |
19,009 |
|
$ |
242,121 |
|
Operating
income (loss) |
$ |
27,786 |
|
$ |
(1,090 |
) |
$ |
(1,433 |
) |
$ |
(19,009 |
) |
$ |
6,254 |
|
Stock-based
compensation |
$ |
47 |
|
$ |
- |
|
$ |
22 |
|
$ |
3,442 |
|
$ |
3,511 |
|
Non-controlling interest ( net income or (loss) ) |
$ |
(3,520 |
) |
$ |
(118 |
) |
$ |
796 |
|
$ |
- |
|
$ |
(2,842 |
) |
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
EBITDA
(1) |
$ |
55,402 |
|
$ |
9,182 |
|
$ |
(1,245 |
) |
$ |
(16,423 |
) |
$ |
46,916 |
|
Adjusted
EBITDA (2) |
$ |
55,405 |
|
$ |
9,193 |
|
$ |
(55 |
) |
$ |
(14,640 |
) |
$ |
49,903 |
|
|
|
|
|
|
|
* Corporate and Other
refer to corporate overhead expenses and consolidating
adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATN International, Inc. |
Selected
Segment Financial Information |
(In
Thousands) |
at December 31, 2021 |
|
|
|
|
|
|
|
International Telecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
Balance Sheet Data (at December 31, 2021): |
|
|
|
|
|
Cash, cash
equivalents and investments |
$ |
43,128 |
|
$ |
28,486 |
|
$ |
659 |
|
$ |
7,628 |
|
$ |
79,901 |
|
Total
current assets |
|
108,677 |
|
|
111,741 |
|
|
3,585 |
|
|
8,614 |
|
|
232,617 |
|
Fixed
assets, net |
|
452,856 |
|
|
480,250 |
|
|
- |
|
|
10,103 |
|
|
943,209 |
|
Total
assets |
|
630,515 |
|
|
877,041 |
|
|
17,481 |
|
|
83,567 |
|
|
1,608,604 |
|
Total
current liabilities |
|
91,090 |
|
|
108,950 |
|
|
356 |
|
|
20,548 |
|
|
220,944 |
|
Total
debt |
|
64,243 |
|
|
240,802 |
|
|
- |
|
|
61,499 |
|
|
366,544 |
|
|
|
|
|
|
|
(1) See Table 5 for reconciliation of Operating Income to
EBITDA |
|
|
|
|
(2) See Table 5 for reconciliation of Operating Income to Adjusted
EBITDA |
|
|
|
* Corporate and Other
refer to corporate overhead expenses and consolidating
adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATN International, Inc. |
Selected Segment Operational Information |
|
|
|
|
|
|
|
|
|
As
of |
As
of |
As
of |
|
|
|
December
31, |
March
31, |
June
30, |
|
|
|
2021 |
2022 |
2022 |
|
|
|
|
|
|
Consolidated Operational Data #: |
|
|
|
|
|
|
|
|
|
|
|
Fiber Route
Miles |
|
|
|
9,058 |
|
|
9,127 |
|
|
9,399 |
|
Fiber
Connected Towers * |
|
|
|
394 |
|
|
394 |
|
|
398 |
|
Owned Towers
** |
|
|
|
398 |
|
|
398 |
|
|
398 |
|
|
|
|
|
|
|
Broadband
Homes Passed - total |
|
|
|
565,300 |
|
|
565,600 |
|
|
569,800 |
|
Broadband
Homes Passed - by HSD *** |
|
|
|
190,400 |
|
|
193,300 |
|
|
199,800 |
|
% Broadband
Homes Passed by HSD *** |
|
|
|
34 |
% |
|
34 |
% |
|
35 |
% |
|
|
|
|
|
|
Broadband
Customers |
|
|
|
203,700 |
|
|
204,000 |
|
|
204,500 |
|
HSD ***
Capable Customers |
|
|
|
98,100 |
|
|
101,800 |
|
|
105,600 |
|
% HSD***
Capable Customers |
|
|
|
48 |
% |
|
50 |
% |
|
52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
June
30, |
September
30, |
December
31, |
March
31, |
June
30, |
|
2021 |
2021 |
2021 |
2022 |
2022 |
International Telecom Operational Data: |
|
|
|
|
|
|
|
|
|
|
|
Mobile - Subscribers # |
|
|
|
|
|
Pre-Paid |
|
273,400 |
|
|
276,400 |
|
|
285,800 |
|
|
291,900 |
|
|
297,000 |
|
Post-Paid |
|
46,600 |
|
|
49,200 |
|
|
49,800 |
|
|
50,200 |
|
|
51,900 |
|
Total |
|
320,000 |
|
|
325,600 |
|
|
335,600 |
|
|
342,100 |
|
|
348,900 |
|
|
|
|
|
|
|
Mobile - Blended Churn |
|
2.19 |
% |
|
2.68 |
% |
|
2.73 |
% |
|
2.86 |
% |
|
2.80 |
% |
|
|
|
|
|
|
# Data presented may
differ from prior reported quarter to reflect more accurate data
and/or changes in calculation methodology and process. |
* All cell sites, including rooftops, that the company serves with
its own fiber |
|
|
|
** All geographically distinct cell sites, including towers and
other structures |
|
|
|
*** HSD is
defined as download speeds>100 Mbs |
|
|
|
|
|
|
|
|
|
|
Table 5 |
ATN
International, Inc. |
Reconciliation of Non-GAAP Measures |
(In
Thousands) |
|
|
|
|
|
|
For the three months ended June 30, 2022 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
11,645 |
|
$ |
(281 |
) |
$ |
(22 |
) |
$ |
(9,620 |
) |
$ |
1,722 |
|
Depreciation
expense |
|
15,074 |
|
|
17,763 |
|
|
- |
|
|
980 |
|
|
33,817 |
|
Amortization
of intangibles from acquisitions |
|
394 |
|
|
2,856 |
|
|
- |
|
|
- |
|
|
3,250 |
|
EBITDA |
$ |
27,113 |
|
$ |
20,338 |
|
$ |
(22 |
) |
$ |
(8,640 |
) |
$ |
38,789 |
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
340 |
|
|
- |
|
|
72 |
|
|
412 |
|
(Gain) Loss
on disposition of assets |
|
- |
|
|
(28 |
) |
|
- |
|
|
- |
|
|
(28 |
) |
ADJUSTED EBITDA |
$ |
27,113 |
|
$ |
20,650 |
|
$ |
(22 |
) |
$ |
(8,568 |
) |
$ |
39,173 |
|
|
|
|
|
|
|
Revenue |
|
88,406 |
|
|
91,091 |
|
|
- |
|
|
- |
|
|
179,497 |
|
ADJUSTED EBITDA MARGIN |
|
30.7 |
% |
|
22.7 |
% |
NA |
NA |
|
21.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2021 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
14,643 |
|
$ |
(556 |
) |
$ |
(771 |
) |
$ |
(10,411 |
) |
$ |
2,905 |
|
Depreciation
expense |
|
13,374 |
|
|
5,079 |
|
|
- |
|
|
1,286 |
|
|
19,739 |
|
Amortization
of intangibles from acquisitions |
|
416 |
|
|
- |
|
|
- |
|
|
- |
|
|
416 |
|
EBITDA |
$ |
28,433 |
|
$ |
4,523 |
|
$ |
(771 |
) |
$ |
(9,125 |
) |
$ |
23,060 |
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
- |
|
|
- |
|
|
1,396 |
|
|
1,396 |
|
(Gain) Loss
on disposition of assets |
|
4 |
|
|
22 |
|
|
717 |
|
|
- |
|
|
743 |
|
ADJUSTED EBITDA |
$ |
28,437 |
|
$ |
4,545 |
|
$ |
(54 |
) |
$ |
(7,729 |
) |
$ |
25,199 |
|
|
|
|
|
|
|
Revenue |
|
86,218 |
|
|
37,647 |
|
|
- |
|
|
- |
|
|
123,865 |
|
ADJUSTED EBITDA MARGIN |
|
33.0 |
% |
|
12.1 |
% |
NA |
NA |
|
20.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2022 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
23,450 |
|
$ |
(4,914 |
) |
$ |
(45 |
) |
$ |
(16,658 |
) |
$ |
1,833 |
|
Depreciation
expense |
|
28,971 |
|
|
36,205 |
|
|
- |
|
|
1,933 |
|
|
67,109 |
|
Amortization
of intangibles from acquisitions |
|
812 |
|
|
5,696 |
|
|
- |
|
|
- |
|
|
6,508 |
|
EBITDA |
$ |
53,233 |
|
$ |
36,987 |
|
$ |
(45 |
) |
$ |
(14,725 |
) |
$ |
75,450 |
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
881 |
|
|
- |
|
|
85 |
|
|
966 |
|
(Gain) Loss
on disposition of assets |
|
1,031 |
|
|
2,361 |
|
|
- |
|
|
- |
|
|
3,392 |
|
ADJUSTED EBITDA |
$ |
54,264 |
|
$ |
40,229 |
|
$ |
(45 |
) |
$ |
(14,640 |
) |
$ |
79,808 |
|
|
|
|
|
|
|
Revenue |
|
175,191 |
|
|
176,326 |
|
|
- |
|
|
- |
|
|
351,517 |
|
ADJUSTED EBITDA MARGIN |
|
31.0 |
% |
|
22.8 |
% |
NA |
NA |
|
22.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2021 is as follows: |
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
27,786 |
|
$ |
(1,090 |
) |
$ |
(1,433 |
) |
$ |
(19,009 |
) |
$ |
6,254 |
|
Depreciation
expense |
|
26,803 |
|
|
10,272 |
|
|
188 |
|
|
2,586 |
|
|
39,849 |
|
Amortization
of intangibles from acquisitions |
|
813 |
|
|
- |
|
|
- |
|
|
- |
|
|
813 |
|
EBITDA |
$ |
55,402 |
|
$ |
9,182 |
|
$ |
(1,245 |
) |
$ |
(16,423 |
) |
$ |
46,916 |
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
- |
|
|
566 |
|
|
1,560 |
|
|
2,126 |
|
(Gain) Loss
on disposition of assets |
|
3 |
|
|
11 |
|
|
624 |
|
|
223 |
|
|
861 |
|
ADJUSTED EBITDA |
$ |
55,405 |
|
$ |
9,193 |
|
$ |
(55 |
) |
$ |
(14,640 |
) |
$ |
49,903 |
|
|
|
|
|
|
|
Revenue |
|
170,036 |
|
|
77,921 |
|
|
418 |
|
|
- |
|
|
248,375 |
|
ADJUSTED EBITDA MARGIN |
|
32.6 |
% |
|
11.8 |
% |
|
-13.2 |
% |
NA |
|
20.1 |
% |
|
|
|
|
Table 6 |
|
|
|
|
|
ATN
International, Inc. |
Non GAAP
Measure - Net Debt Ratio |
(in
Thousands, Except per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2022 |
2021 |
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt * |
|
$ |
3,759 |
|
$ |
4,665 |
Long-term
debt, net of current portion * |
|
|
352,319 |
|
|
327,111 |
|
|
|
|
|
Total
debt |
|
$ |
356,078 |
|
$ |
331,776 |
|
|
|
|
|
Less: Cash
and cash equivalents |
|
|
71,061 |
|
|
79,601 |
|
|
|
|
|
Net
Debt |
|
$ |
285,017 |
|
$ |
252,175 |
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA - for the four quarters ended |
|
$ |
158,948 |
|
$ |
129,047 |
|
|
|
|
|
|
|
|
|
|
Net Debt
Ratio |
|
|
1.79 |
|
|
1.95 |
|
|
|
|
|
|
|
|
|
|
* Excludes
Customer Receivable and Credit Facility |
|
|
|
|
1 See Table 5 for reconciliation of Operating Income to EBITDA,
a non-GAAP measure.2 See Table 5 for reconciliation of Operating
Income to Adjusted EBITDA, a non-GAAP measure.
3International Telecom revenues are generated by delivery of a
broad range of communications and managed IT services, including
data, voice and video services from the Company’s fixed and mobile
network operations in Bermuda and the Caribbean, and include direct
government payments as part of the FCC high-cost support program in
the USVI. 4 US Telecom revenues consist of broadband, carrier
services, managed IT services, fixed enterprise, and mobile retail
revenues from the Company’s networks and operations in Alaska and
in the western United States, including various government programs
such as CAF II, E-Rate, Lifeline and rural healthcare support
programs. 5 For the Company’s 2022 Guidance Adjusted EBITDA , the
Company is not able to provide without unreasonable effort the most
directly comparable GAAP financial measures, or reconciliations to
such GAAP financial measures, on a forward-looking basis. Please
see “Use of Non-GAAP Financial Measures” below for a full
description of items excluded from the Company’s expected Adjusted
EBITDA.6 Defined as download speeds of greater than 100 MBPS.
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