ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a
leading provider of digital infrastructure and communications
services, today reported results for the first quarter ended March
31, 2022.
“We started off 2022 on the right foot,
expanding our subscriber counts and reach in multiple markets,”
commented Michael Prior, Chief Executive Officer of ATN. “With a
persistent focus on being first to fiber, we are rapidly deploying
fiber optic facilities and other high-speed solutions in the
communities we serve. More communities, homes, businesses, schools,
and even other carriers now have access to world-class connectivity
as a result. Customers up and down the value chain are very
appreciative of these in-roads, and we continue to build
relationships for the long term.
“Staying true to our roots, we brought digital
connectivity to more remote areas in the quarter. This included
connecting ten Navajo Nation Consortium schools and bringing fiber
to five new communities in Guyana, greatly improving broadband
capacity for residents, businesses and schools in these coastal and
inland mining towns. We currently have more than half a million
homes passed by our broadband networks, up 92% from a year ago, and
we are now capable of delivering higher-speed data services to 38%
of our residential subscribers. We expect to continue to increase
the number of homes, schools and businesses passed by our
high-speed services as well as the number of customers subscribed
to those services throughout the year which should be reflected in
our financial results through revenue growth and margin
improvement.
“Looking ahead, as we advance our network
builds, strategic initiatives and augmented sales and marketing
capabilities, we remain confident in our 2022 and three-year
forecasts. We continue to see attractive investment opportunities
in many of our markets with good growth potential. We plan to
further expand our offerings of higher-speed services via fiber and
other high-speed data solutions to capture this sizable
opportunity,” added Prior.
First Quarter 2022 Financial Results
First quarter 2022 consolidated revenues were
$172.0 million, up 38% compared with $124.5 million in the same
period a year ago. The Company reported operating income of $0.1
million and Adjusted EBITDA2 of $40.6 million compared with an
operating income of $3.3 million and Adjusted EBITDA2 of $24.7
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. The decrease in operating income for the
quarter was mainly driven by $3.4 million of one-time losses on
disposed assets in both the Company’s US and International Telecom
businesses. Net loss attributable to ATN stockholders for the first
quarter was $1.0 million, or $0.13 loss per share, compared with
net income attributable to ATN stockholders of $2.7 million, or
$0.17 income per diluted share, in the same period a year ago.
First Quarter 2022 Operating Segment
Results
The Company recorded financial results during
the first 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 March 31, 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 |
$ |
86,787 |
$ |
83,820 |
$ |
85,232 |
|
$ |
40,272 |
|
$ |
- |
|
$ |
418 |
|
$ |
172,019 |
$ |
124,510 |
Operating Income (Loss) |
$ |
11,802 |
$ |
13,116 |
$ |
(4,635 |
) |
$ |
(534 |
) |
$ |
(7,059 |
) |
$ |
(9,233 |
) |
$ |
108 |
$ |
3,349 |
EBITDA1 |
$ |
26,117 |
$ |
26,942 |
$ |
16,647 |
|
$ |
4,659 |
|
$ |
(6,106 |
) |
$ |
(7,744 |
) |
$ |
36,658 |
$ |
23,857 |
Adjusted EBITDA2 |
$ |
27,148 |
$ |
26,941 |
$ |
19,578 |
|
$ |
4,648 |
|
$ |
(6,094 |
) |
$ |
(6,885 |
) |
$ |
40,632 |
$ |
24,704 |
Capital Expenditures** |
$ |
15,170 |
$ |
10,506 |
$ |
19,095 |
|
$ |
14,939 |
|
$ |
203 |
|
$ |
235 |
|
$ |
34,468 |
$ |
25,680 |
*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 capital expenditures reimbursable
from customers of $0.2 million and $6.2 million for the three
months ended March 31, 2022, and the three months ended March 31,
2021, respectively.
International Telecom
International Telecom revenues3 were $86.8 million for the
quarter, up 4% year-over-year. This increase was mainly due to
mobility subscriber growth as well as higher carrier services
revenue, partially offset by a decline in federal high-cost support
subsidies for the U.S. Virgin Islands. Increased travel and tourism
in the U.S. Virgin Islands and Bermuda contributed to the increases
in segment revenues. Operating expenses for the quarter increased
incrementally year-over-year as the Company’s operations returned
to pre-pandemic levels and the Company invested in brand
positioning to expand its subscriber base in certain markets. The
International Telecom segment reported operating income of $11.8
million and Adjusted EBITDA2 of $27.1 million in the quarter,
compared with operating income of $13.1 million and Adjusted
EBITDA2 of $26.9 million in the prior year period. The
year-over-year changes were due to higher operating expenditures
offsetting the increase in segment revenues, and the impact of a
one-time loss on disposed assets in the quarter.
US Telecom
US Telecom segment revenues4 were $85.2 million
in the quarter, more than doubling from $40.3 million in the prior
year period. Business and carrier services revenues accounted for
approximately 75% of the segment’s services revenues in the first
quarter of 2022. Operating loss was $4.6 million
compared with $0.5 million in the same period a year ago. This
increase in operating loss was mainly due to lower profitability in
the Company’s legacy US Telecom business and one-time losses on
disposed assets. Adjusted EBITDA2 was $19.6 million in the quarter
compared with $4.6 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. The increase in
Adjusted EBITDA2 was also driven by the consolidation of Alaska
Communications and expense reductions associated with the Company’s
private networks business, partially offset by the year-over-year
increases in network costs due to the completion of additional
FirstNet sites.
By the end of the first quarter of 2022, the
Company had completed and activated just over 60% of the total
sites related to the network build portion of its long-term
FirstNet Agreement. The Company expects to complete an additional
30% of the total build by the end of 2022 and that revenues from
the build will be largely offset by construction costs incurred in
the same period.
Balance Sheet and Cash Flow
Highlights
As of March 31, 2022, the Company had total
cash, cash equivalents and restricted cash of $76.8 million,
compared with $80.7 million as of December 31, 2021.
Net cash provided by operating activities was
$11.4 million for the three months ended March 31, 2022, compared
with $5.3 million for the three months ended March 31, 2021. The
year-over-year increase in operating cash flow was due to the
increase in EBITDA in the first quarter of 2022, which offset net
reductions in working capital. For the three months ended March 31,
2022, the Company used net cash of $15.2 million for investing and
financing activities, compared to $18.0 million for the three
months ended March 31, 2021. The net use of cash was primarily
attributable to $34.5 million in capital expenditures, $2.5 million
of purchases of minority equity interests in the Company’s
subsidiaries and $3.6 million in dividends to Company stockholders
and repurchases of Company common stock. These uses of cash were
partially offset by net borrowings of $21.0 million under revolving
credit agreements.
Quarterly Dividends and Stock
Buybacks
On March 28, 2022, ATN announced that its Board
of Directors had declared a quarterly dividend of $0.17 per share,
payable on April 15, 2022, on all common shares outstanding to
stockholders of record as of April 8, 2022. In the first quarter of
2022, the Company utilized cash on hand to repurchase $0.9 million
in common stock.
2022 GuidanceThe Company is
reiterating its outlook for 2022 financial performance, 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. The Company
expects its Adjusted EBITDA levels to increase in the latter part
of the year and to be in the range of $165 to $170 million for the
full year5. The Company expects its revenue and Adjusted EBITDA
growth to be supported by the contribution of a full year of
business results from Alaska Communications.
Three Year Outlook The Company
is reiterating 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. These goals are
largely based on, and in line with, the Company’s continuing
investments in its Glass and Steel™ and “fiber-first” platform
strategies, which the Company anticipates will drive compound
annual revenue growth (excluding construction revenues) of 4-6%,
leading to 2024 revenue in the range of $770 to $810 million. The
Company also expects compound annual Adjusted EBITDA growth of
8-10% for the three-year period ending in 20245, outpacing its
expected compound annual revenue growth rate over the same period.
Capital expenditures are expected to return to more normalized
levels of 10-15% of revenues after the three-year investment period
ending in 2024. The Company’s Net Debt Ratio6 is expected to be
less than 1.5x at the end of the three-year period ending in
20245.
The Company will provide updates to the market
on this strategy and outlook from time to time as it progresses
going forward.
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 has led to
increases in the Company’s fiber footprint and broadband subscriber
levels. Domestically, the addition of Alaska Communications has
further accelerated the Company’s reach.
From January 1, 2020 to the present, the Company
has:
- Added 242,000 premises passed by
broadband and 30,000 premises passed by higher-speed solutions7
.
- Added approximately 64,700
broadband subscribers, an increase of 47%.
- More than doubled terrestrial fiber
facilities, adding over 6,000 route miles.
- Expanded mobile data capacity in
all markets and added over 56,000 mobile subscribers, an increase
of 18%.
Conference Call Information
ATN will host a conference call on Thursday,
April 28, 2022, at 10:30 a.m. Eastern Time (ET) to discuss its
first quarter results and business outlook. 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. The
Conference ID is 7884416. A replay of the call will be available at
ir.atni.com beginning at approximately 1:00 p.m. (ET) on Thursday,
April 28, 2022.
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 expenditures; the competitive
environment in the Company’s key markets, demand for the Company’s
services and industry trends; the Company’s expectations regarding
consumer and enterprise demand for its US Telecom services,
expectations regarding the benefits of the Company’s acquisition of
Alaska Communications; the impact of federal support program and
government subsidy revenues; 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;
(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. 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) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
2022 |
2021 |
|
Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
75,748 |
|
$ |
79,601 |
|
Restricted cash |
|
1,097 |
|
|
1,096 |
|
Customer receivable |
|
4,336 |
|
|
4,145 |
|
Other current assets |
|
139,660 |
|
|
147,775 |
|
|
|
|
|
|
Total current assets |
|
220,841 |
|
|
232,617 |
|
|
|
|
|
|
Property, plant and equipment, net |
|
933,875 |
|
|
943,209 |
|
Operating lease right-of-use assets |
|
118,091 |
|
|
118,843 |
|
Customer receivable - long term |
|
40,206 |
|
|
39,652 |
|
Goodwill and other intangible assets, net |
|
194,937 |
|
|
198,164 |
|
Other assets |
|
82,757 |
|
|
76,119 |
|
|
|
|
|
|
Total
assets |
$ |
1,590,707 |
|
$ |
1,608,604 |
|
|
|
|
|
|
Liabilities,
Redeemable Non-controlling interests and Stockholders’ Equity: |
|
|
|
|
Current portion of long-term debt |
$ |
3,743 |
|
$ |
4,665 |
|
Current portion of customer receivable credit
facility |
|
5,280 |
|
|
4,620 |
|
Taxes payable |
|
6,680 |
|
|
5,681 |
|
Current portion of lease liabilities |
|
16,953 |
|
|
16,201 |
|
Other current liabilities |
|
152,070 |
|
|
189,777 |
|
Total current liabilities |
|
184,726 |
|
|
220,944 |
|
|
|
|
|
|
Long-term debt, net of current portion |
$ |
348,463 |
|
$ |
327,111 |
|
Customer receivable credit facility, net of
current portion |
|
36,515 |
|
|
30,148 |
|
Deferred income taxes |
|
21,651 |
|
|
21,460 |
|
Lease liabilities |
|
91,494 |
|
|
91,719 |
|
Other long-term liabilities |
|
140,246 |
|
|
142,033 |
|
|
|
|
|
|
Total
liabilities |
|
823,095 |
|
|
833,415 |
|
|
|
|
|
|
Redeemable
Non-controlling interests |
|
74,052 |
|
|
72,936 |
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
Total ATN International, Inc.’s stockholders’
equity |
|
594,792 |
|
|
601,250 |
|
Non-controlling interests |
|
98,768 |
|
|
101,003 |
|
|
|
|
|
|
Total
stockholders' equity |
|
693,560 |
|
|
702,253 |
|
|
|
|
|
|
Total
liabilities, Redeemable Non-controlling interests and stockholders’
equity |
$ |
1,590,707 |
|
$ |
1,608,604 |
|
|
|
|
|
|
|
|
|
Table
2 |
|
ATN
International, Inc. |
|
Unaudited
Condensed Consolidated Statements of Operations |
|
(in
Thousands, Except per Share Data) |
|
|
|
|
|
|
|
Three Months
Ended |
|
March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
Revenues: |
|
|
|
|
Communications services |
$ |
166,543 |
|
|
$ |
110,636 |
|
|
Construction |
|
1,987 |
|
|
|
12,306 |
|
|
Other |
|
3,489 |
|
|
|
1,568 |
|
|
Total revenue |
|
172,019 |
|
|
|
124,510 |
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation and amortization unless otherwise
indicated): |
|
|
|
|
Cost of services and other |
|
73,011 |
|
|
|
49,507 |
|
|
Cost of construction revenue |
|
2,033 |
|
|
|
12,606 |
|
|
Selling, general and administrative |
|
56,343 |
|
|
|
37,693 |
|
|
Transaction-related charges |
|
554 |
|
|
|
730 |
|
|
Depreciation |
|
33,292 |
|
|
|
20,111 |
|
|
Amortization of intangibles from
acquisitions |
|
3,258 |
|
|
|
397 |
|
|
Loss on disposition of assets |
|
3,420 |
|
|
|
117 |
|
|
Total
operating expenses |
|
171,911 |
|
|
|
121,161 |
|
|
|
|
|
|
|
Operating
income |
|
108 |
|
|
|
3,349 |
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
Interest expense, net |
|
(3,312 |
) |
|
|
(1,153 |
) |
|
Other income (expense) |
|
4,199 |
|
|
|
2,375 |
|
|
Other income, net |
|
887 |
|
|
|
1,222 |
|
|
|
|
|
|
|
Income
before income taxes |
|
995 |
|
|
|
4,571 |
|
|
Income tax expense |
|
2,952 |
|
|
|
295 |
|
|
|
|
|
|
|
Net income
(loss) |
|
(1,957 |
) |
|
|
4,276 |
|
|
|
|
|
|
|
Net income
(loss) attributable to non-controlling interests, net |
|
1,009 |
|
|
|
(1,570 |
) |
|
|
|
|
|
|
Net income
(loss) attributable to ATN International, Inc. stockholders |
$ |
(948 |
) |
|
$ |
2,706 |
|
|
|
|
|
|
|
Net income
(loss) per weighted average share attributable to ATN
International, Inc. stockholders: |
|
|
|
|
|
|
|
|
|
Basic Net Income (loss) |
$ |
(0.13 |
) |
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Income (loss) |
$ |
(0.13 |
) |
|
$ |
0.17 |
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
Basic |
|
15,708 |
|
|
|
15,902 |
|
|
Diluted |
|
15,708 |
|
|
|
15,952 |
|
|
|
|
|
|
|
Table
3 |
|
ATN
International, Inc. |
|
Unaudited
Condensed Consolidated Cash Flow Statement |
|
(in Thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Net income (loss) |
$ |
(1,957 |
) |
|
$ |
4,276 |
|
|
Depreciation |
|
33,292 |
|
|
|
20,111 |
|
|
Amortization of intangibles from
acquisitions |
|
3,258 |
|
|
|
397 |
|
|
Provision for doubtful accounts |
|
1,913 |
|
|
|
1,122 |
|
|
Amortization of debt discount and debt issuance
costs |
|
501 |
|
|
|
168 |
|
|
Loss on disposition of long-lived assets |
|
3,420 |
|
|
|
117 |
|
|
Stock-based compensation |
|
1,461 |
|
|
|
1,336 |
|
|
Deferred income taxes |
|
191 |
|
|
|
(2,504 |
) |
|
Gain on equity investments |
|
(4,222 |
) |
|
|
(2,188 |
) |
|
Unrealized (gain) loss on foreign currency |
|
- |
|
|
|
(81 |
) |
|
Increase in customer receivable |
|
(746 |
) |
|
|
(12,579 |
) |
|
Change in prepaid and accrued income taxes |
|
8,969 |
|
|
|
1,810 |
|
|
Change in other operating assets and
liabilities |
|
(34,692 |
) |
|
|
(6,662 |
) |
|
|
|
|
|
|
Net cash provided by
operating activities |
|
11,388 |
|
|
|
5,323 |
|
|
|
|
|
|
|
Capital expenditures |
|
(34,220 |
) |
|
|
(19,495 |
) |
|
Reimbursable capital expenditures |
|
(248 |
) |
|
|
(6,185 |
) |
|
Purchases of strategic investments |
|
- |
|
|
|
(4,155 |
) |
|
Receipt of government grants |
|
- |
|
|
|
3,292 |
|
|
Sale of business, net of transferred cash of $0
and $0.9 million, respectively |
|
- |
|
|
|
18,597 |
|
|
|
|
|
|
|
Net cash used in
investing activities |
|
(34,468 |
) |
|
|
(7,946 |
) |
|
|
|
|
|
|
Dividends paid on common stock |
|
(2,672 |
) |
|
|
(2,703 |
) |
|
Distributions to non-controlling interests |
|
(263 |
) |
|
|
(3,530 |
) |
|
Finance leases |
|
(338 |
) |
|
|
- |
|
|
Term loan - repayments |
|
(938 |
) |
|
|
(938 |
) |
|
Revolving credit facility – borrowings |
|
36,500 |
|
|
|
- |
|
|
Revolving credit facility – repayments |
|
(15,500 |
) |
|
|
- |
|
|
Payment of debt issuance costs |
|
- |
|
|
|
53 |
|
|
Proceeds from customer receivable credit
facility |
|
8,000 |
|
|
|
10,814 |
|
|
Repayment of customer receivable credit
facility |
|
(1,003 |
) |
|
|
- |
|
|
Purchases of common stock - stock-based
compensation |
|
(1,136 |
) |
|
|
(1,677 |
) |
|
Purchases of common stock - share repurchase
plan |
|
(941 |
) |
|
|
(540 |
) |
|
Repurchases of non-controlling interests |
|
(2,481 |
) |
|
|
(11,522 |
) |
|
|
|
|
|
|
Net cash provided by
(used in) financing activities |
|
19,228 |
|
|
|
(10,043 |
) |
|
|
|
|
|
|
Net change
in total cash, cash equivalents and restricted cash |
|
(3,852 |
) |
|
|
(12,666 |
) |
|
|
|
|
|
|
Total cash,
cash equivalents and restricted cash, beginning of period |
|
80,697 |
|
|
|
104,997 |
|
|
|
|
|
|
|
Total cash,
cash equivalents and restricted cash, end of period |
$ |
76,845 |
|
|
$ |
92,331 |
|
|
|
|
|
|
|
|
|
|
|
Table
4 |
ATN
International, Inc. |
Selected
Segment Financial Information |
(In
Thousands) |
|
|
|
|
|
|
For the three months ended March 31, 2022 is as follows: |
|
|
|
|
|
|
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total |
|
|
|
|
|
|
Statement of Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Mobility |
|
|
|
|
|
Business |
$ |
3,616 |
|
$ |
374 |
|
$ |
- |
|
$ |
- |
|
$ |
3,990 |
|
Consumer |
|
19,970 |
|
|
1,456 |
|
|
- |
|
|
- |
|
|
21,426 |
|
Total |
$ |
23,586 |
|
$ |
1,830 |
|
$ |
- |
|
$ |
- |
|
$ |
25,416 |
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
Business |
$ |
17,254 |
|
$ |
27,145 |
|
$ |
- |
|
$ |
- |
|
$ |
44,399 |
|
Consumer |
|
41,093 |
|
|
18,968 |
|
|
- |
|
|
- |
|
|
60,061 |
|
Total |
$ |
58,347 |
|
$ |
46,113 |
|
$ |
- |
|
$ |
- |
|
$ |
104,460 |
|
|
|
|
|
|
|
Carrier Services |
$ |
3,402 |
|
$ |
32,989 |
|
$ |
- |
|
$ |
- |
|
$ |
36,391 |
|
Other |
|
276 |
|
|
- |
|
|
- |
|
|
- |
|
|
276 |
|
|
|
|
|
|
|
Total Communications Services |
$ |
85,611 |
|
$ |
80,932 |
|
$ |
- |
|
$ |
- |
|
$ |
166,543 |
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
1,987 |
|
$ |
- |
|
$ |
- |
|
$ |
1,987 |
|
|
|
|
|
|
|
Managed services |
$ |
1,176 |
|
$ |
2,313 |
|
$ |
- |
|
$ |
- |
|
$ |
3,489 |
|
Total Other |
$ |
1,176 |
|
$ |
2,313 |
|
$ |
- |
|
$ |
- |
|
$ |
3,489 |
|
|
|
|
|
|
|
Total Revenue |
$ |
86,787 |
|
$ |
85,232 |
|
$ |
- |
|
$ |
- |
|
$ |
172,019 |
|
|
|
|
|
|
|
Depreciation |
$ |
13,897 |
|
$ |
18,442 |
|
$ |
- |
|
$ |
953 |
|
$ |
33,292 |
|
Amortization
of intangibles from acquisitions |
$ |
418 |
|
$ |
2,840 |
|
$ |
- |
|
$ |
- |
|
$ |
3,258 |
|
Total
operating expenses |
$ |
74,984 |
|
$ |
89,868 |
|
$ |
23 |
|
$ |
7,036 |
|
$ |
171,911 |
|
Operating
income (loss) |
$ |
11,802 |
|
$ |
(4,635 |
) |
$ |
(23 |
) |
$ |
(7,036 |
) |
$ |
108 |
|
Stock-based
compensation |
$ |
60 |
|
$ |
90 |
|
$ |
- |
|
$ |
1,310 |
|
$ |
1,460 |
|
Non-controlling interest ( net income or (loss) ) |
$ |
(1,519 |
) |
$ |
2,528 |
|
$ |
- |
|
$ |
- |
|
$ |
1,009 |
|
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
EBITDA
(1) |
$ |
26,117 |
|
$ |
16,647 |
|
$ |
(23 |
) |
$ |
(6,083 |
) |
$ |
36,658 |
|
Adjusted
EBITDA (2) |
$ |
27,148 |
|
$ |
19,578 |
|
$ |
(23 |
) |
$ |
(6,071 |
) |
$ |
40,632 |
|
|
|
|
|
|
|
Balance Sheet Data (at March 31, 2022): |
|
|
|
|
|
Cash, cash
equivalents and investments |
$ |
40,101 |
|
$ |
29,285 |
|
$ |
705 |
|
$ |
5,957 |
|
$ |
76,048 |
|
Total
current assets |
|
105,551 |
|
|
108,779 |
|
|
3,653 |
|
|
2,858 |
|
|
220,841 |
|
Fixed
assets, net |
|
448,064 |
|
|
476,491 |
|
|
- |
|
|
9,320 |
|
|
933,875 |
|
Total
assets |
|
623,497 |
|
|
868,338 |
|
|
17,053 |
|
|
81,818 |
|
|
1,590,706 |
|
Total
current liabilities |
|
80,857 |
|
|
87,434 |
|
|
356 |
|
|
16,079 |
|
|
184,726 |
|
Total
debt |
|
63,342 |
|
|
259,159 |
|
|
- |
|
|
71,500 |
|
|
394,001 |
|
|
|
|
|
|
|
* 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 March 31, 2021 is as follows: |
|
|
|
|
|
|
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total |
Statement of Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Mobility |
|
|
|
|
|
Business |
$ |
1,197 |
|
$ |
576 |
|
$ |
- |
|
$ |
- |
|
$ |
1,773 |
|
Consumer |
|
20,624 |
|
|
2,284 |
|
|
- |
|
|
- |
|
|
22,908 |
|
Total |
$ |
21,821 |
|
$ |
2,860 |
|
$ |
- |
|
$ |
- |
|
$ |
24,681 |
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
Business |
$ |
16,634 |
|
$ |
2,696 |
|
$ |
- |
|
$ |
- |
|
$ |
19,330 |
|
Consumer |
|
42,114 |
|
|
3,674 |
|
|
- |
|
|
- |
|
|
45,788 |
|
Total |
$ |
58,748 |
|
$ |
6,370 |
|
$ |
- |
|
$ |
- |
|
$ |
65,118 |
|
|
|
|
|
|
|
Carrier Services |
$ |
1,883 |
|
$ |
18,736 |
|
$ |
- |
|
$ |
- |
|
$ |
20,619 |
|
Other |
|
218 |
|
|
- |
|
|
- |
|
|
- |
|
|
218 |
|
|
|
|
|
|
|
Total Communications Services |
$ |
82,670 |
|
$ |
27,966 |
|
$ |
- |
|
$ |
- |
|
$ |
110,636 |
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
12,306 |
|
$ |
- |
|
$ |
- |
|
$ |
12,306 |
|
|
|
|
|
|
|
Renewable Energy |
$ |
- |
|
$ |
- |
|
$ |
418 |
|
$ |
- |
|
$ |
418 |
|
Managed services |
|
1,150 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,150 |
|
|
|
|
|
|
|
Total Other |
$ |
1,150 |
|
$ |
- |
|
$ |
418 |
|
$ |
- |
|
$ |
1,568 |
|
|
|
|
|
|
|
Total Revenue |
$ |
83,820 |
|
$ |
40,272 |
|
$ |
418 |
|
$ |
- |
|
$ |
124,510 |
|
|
|
|
|
|
|
Depreciation |
$ |
13,429 |
|
$ |
5,193 |
|
$ |
188 |
|
$ |
1,301 |
|
$ |
20,111 |
|
Amortization
of intangibles from acquisitions |
$ |
397 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
397 |
|
Total
operating expenses |
$ |
70,704 |
|
$ |
40,806 |
|
$ |
1,080 |
|
$ |
8,571 |
|
$ |
121,161 |
|
Operating
income (loss) |
$ |
13,116 |
|
$ |
(534 |
) |
$ |
(662 |
) |
$ |
(8,571 |
) |
$ |
3,349 |
|
Stock-based
compensation |
$ |
37 |
|
$ |
15 |
|
$ |
22 |
|
$ |
1,262 |
|
$ |
1,336 |
|
Non-controlling interest ( net income or (loss) ) |
$ |
(1,690 |
) |
$ |
(676 |
) |
$ |
796 |
|
$ |
- |
|
$ |
(1,570 |
) |
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
EBITDA
(1) |
$ |
26,942 |
|
$ |
4,659 |
|
$ |
(474 |
) |
$ |
(7,270 |
) |
$ |
23,857 |
|
Adjusted
EBITDA (2) |
$ |
26,941 |
|
$ |
4,648 |
|
$ |
(1 |
) |
$ |
(6,884 |
) |
$ |
24,704 |
|
|
|
|
|
|
|
* 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 |
Renewable Energy |
Corporate and Other * |
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 |
|
|
|
|
December
31, |
March
31, |
|
|
|
|
2021 |
2022 |
|
|
|
|
|
|
Consolidated Operational Data #: |
|
|
|
|
|
|
|
|
|
|
|
Fiber Route
Miles |
|
|
|
|
9,058 |
|
|
9,127 |
|
Fiber
Connected Towers * |
|
|
|
|
394 |
|
|
394 |
|
Owned Towers
** |
|
|
|
|
398 |
|
|
398 |
|
|
|
|
|
|
|
Broadband
Homes Passed - total |
|
|
|
|
502,400 |
|
|
502,400 |
|
Broadband
Homes Passed - by HSD *** |
|
|
|
|
187,300 |
|
|
190,200 |
|
% Broadband
Homes Passed by HSD *** |
|
|
|
|
37 |
% |
|
38 |
% |
|
|
|
|
|
|
Broadband
Customers |
|
|
|
|
203,700 |
|
|
204,000 |
|
HSD ***
Capable Customers |
|
|
|
|
98,100 |
|
|
101,800 |
|
% HSD***
Capable Customers |
|
|
|
|
48 |
% |
|
50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
March
31, |
June
30, |
September
30, |
December
31, |
March
31, |
|
2021 |
2021 |
2021 |
2021 |
2022 |
International Telecom Operational Data: |
|
|
|
|
|
|
|
|
|
|
|
Mobile - Subscribers # |
|
|
|
|
|
Pre-Paid |
|
261,900 |
|
|
273,400 |
|
|
276,400 |
|
|
285,800 |
|
|
291,900 |
|
Post-Paid |
|
45,700 |
|
|
46,600 |
|
|
49,200 |
|
|
49,800 |
|
|
50,200 |
|
Total |
|
307,600 |
|
|
320,000 |
|
|
325,600 |
|
|
335,600 |
|
|
342,100 |
|
|
|
|
|
|
|
Mobile - Blended Churn |
|
2.26 |
% |
|
2.19 |
% |
|
2.68 |
% |
|
2.73 |
% |
|
2.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
# 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 March 31, 2022 is as follows: |
|
|
|
|
|
|
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
11,802 |
|
$ |
(4,635 |
) |
$ |
(23 |
) |
$ |
(7,036 |
) |
$ |
108 |
|
Depreciation
expense |
|
13,897 |
|
|
18,442 |
|
|
- |
|
|
953 |
|
|
33,292 |
|
Amortization
of intangibles from acquisitions |
|
418 |
|
|
2,840 |
|
|
- |
|
|
- |
|
|
3,258 |
|
EBITDA |
$ |
26,117 |
|
$ |
16,647 |
|
$ |
(23 |
) |
$ |
(6,083 |
) |
$ |
36,658 |
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
542 |
|
|
- |
|
|
12 |
|
|
554 |
|
Loss on
disposition of assets |
|
1,031 |
|
|
2,389 |
|
|
- |
|
|
- |
|
|
3,420 |
|
ADJUSTED EBITDA |
$ |
27,148 |
|
$ |
19,578 |
|
$ |
(23 |
) |
$ |
(6,071 |
) |
$ |
40,632 |
|
|
|
|
|
|
|
Revenue |
|
86,787 |
|
|
85,232 |
|
|
- |
|
|
- |
|
|
172,019 |
|
ADJUSTED EBITDA MARGIN |
|
31.3 |
% |
|
23.0 |
% |
NA |
|
NA |
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31, 2021 is as follows: |
|
|
|
|
|
|
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
13,116 |
|
$ |
(534 |
) |
$ |
(662 |
) |
$ |
(8,571 |
) |
$ |
3,349 |
|
Depreciation
expense |
|
13,429 |
|
|
5,193 |
|
|
188 |
|
|
1,301 |
|
|
20,111 |
|
Amortization
of intangibles from acquisitions |
|
397 |
|
|
- |
|
|
- |
|
|
- |
|
|
397 |
|
EBITDA |
$ |
26,942 |
|
$ |
4,659 |
|
$ |
(474 |
) |
$ |
(7,270 |
) |
$ |
23,857 |
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
- |
|
|
566 |
|
|
164 |
|
|
730 |
|
(Gain) Loss
on disposition of assets |
|
(1 |
) |
|
(11 |
) |
|
(93 |
) |
|
222 |
|
|
117 |
|
ADJUSTED EBITDA |
$ |
26,941 |
|
$ |
4,648 |
|
$ |
(1 |
) |
$ |
(6,884 |
) |
$ |
24,704 |
|
|
|
|
|
|
|
Revenue |
|
83,820 |
|
|
40,272 |
|
|
418 |
|
|
- |
|
|
124,510 |
|
ADJUSTED EBITDA MARGIN |
|
32.1 |
% |
|
11.5 |
% |
|
-0.2 |
% |
NA |
|
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
Table
6 |
|
ATN
International, Inc. |
|
Non GAAP
Measure - Net Debt Ratio |
|
(in
Thousands, Except per Share Data) |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2022 |
2021 |
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
$ |
3,743 |
|
$ |
4,665 |
|
Long-term
debt, net of current portion |
|
348,463 |
|
|
327,111 |
|
|
|
|
|
|
Total
debt |
$ |
352,206 |
|
$ |
331,776 |
|
|
|
|
|
|
Less: Cash
and cash equivalents |
|
75,748 |
|
|
79,601 |
|
|
|
|
|
|
Net
Debt |
$ |
276,458 |
|
$ |
252,175 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA - for the four quarters ended |
$ |
144,977 |
|
$ |
129,047 |
|
|
|
|
|
|
|
|
|
|
|
Net Debt
Ratio |
|
1.91 |
|
|
1.95 |
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 and
Three Year Outlook Adjusted EBITDA and Net Debt Ratio, 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 and Net Debt Ratio.6 Net Debt Ratio, a non-GAAP measure, is
defined as total Debt less Cash and Cash Equivalents divided by
Adjusted EBITDA – see Table 6.7 Defined as download speeds of
greater than 100 MBPS.
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