ATNI ATN International Inc

ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported financial results for the quarter ended September 30, 2024.

Remarks by Brad Martin, ATN Chief Executive Officer

“We reported strong free cash flow from operations in the third quarter, driven by effective cost and net working capital management. Our performance continues to reflect a tale of two segments, with revenues impacted primarily by underperformance in our US Telecom segment related to the conclusion of certain government subsidy programs, slower consumer growth, and delays in enterprise sales and delivery. Based on these dynamics, and compression in market multiples, we recorded a non-cash $35 million goodwill impairment charge during the third quarter.

“In the International Telecom segment, solid fixed revenue gains and business mobility revenue growth offset softness in consumer mobility related to competitive pressures, and we delivered Adjusted EBITDA growth. Additionally, we increased our international post-paid mobile subscriber bases both sequentially and year-over-year.

“To reflect our expectations for near-term operating performance, we are lowering our revenue and Adjusted EBITDA guidance ranges for fiscal 2024 and increasing our expected leverage multiple exiting the year. We are taking strategic actions intended to align our cost structure with current revenue levels, while focusing on margin improvement and cash flow generation. These actions include refocusing efforts on growing our business and carrier customer revenues in the US, strengthening sales execution teams, and maximizing value from deployed assets.

“Longer term, we remain committed to leveraging the value and longevity of our upgraded network while diligently operating the business in an effort to further expand cash flows and position ATN to deliver increased value for shareholders.”

Third Quarter 2024 Financial Results

Consolidated revenues were $178.5 million, down 7% versus $191.0 million in the year-ago quarter. This primarily reflects the overall revenue decline in the US Telecom segment due in part to the anticipated impact of the end of the Emergency Connectivity Fund (ECF) and Affordable Care Program (ACP), and a reduction in construction revenues for the quarter.

Operating loss was $38.4 million in the third quarter versus operating income of $6.8 million in the year-ago quarter. The decrease in operating income was primarily due to a $35.3 million non-cash goodwill impairment charge on certain US Telecom assets, $3.8 million of transaction-related charges, and $2.3 million of restructuring and reorganization expenses.

Net loss attributable to ATN stockholders in the third quarter of 2024 was $32.7 million, or a loss of $2.26 per share compared with a net loss attributable to ATN stockholders of $3.6 million, or $0.31 loss per share, in the year-ago quarter. The year-over-year change was the result of the above-mentioned factors that increased the operating loss combined with an increase in interest expense. In all periods, the loss per share calculation includes the impact of preferred dividends that are not included in the net loss calculation.

Adjusted EBITDA1 was $45.7 million in the third quarter of 2024, a decrease from $47.8 million in the year-ago quarter primarily due to lower US Telecom revenues.

Segment Operating Results (in Thousands)

The Company recorded financial results in three categories: (i) International Telecom; (ii) US Telecom; and (iii) Corporate and Other*.

For Three Months Ended September 30, 2024 and 2023
		2024			2023			2024			2023			2024			2023			2024			2023
	International			International			US			US			Corporate and			Corporate and			Total			Total
	Telecom			Telecom			Telecom			Telecom			Other*			Other*			ATN			ATN
Total Revenue:	$	94,281		$	93,878		$	84,170		$	97,158		$	-		$	-		$	178,451		$	191,036
Mobility		26,809			27,791			706			946			-			-			27,515			28,737
Fixed		61,759			59,983			51,015			58,342			-			-			112,774			118,325
Carrier Services		3,272			3,441			29,430			32,319			-			-			32,702			35,760
Construction		-			-			203			2,038			-			-			203			2,038
All other		2,441			2,663			2,816			3,513			-			-			5,257			6,176
Operating Income (Loss)	$	12,853		$	12,800		$	(44,333	)	$	3,018		$	(6,878	)	$	(8,981	)	$	(38,358	)	$	6,837
EBITDA**	$	31,518		$	27,394		$	(23,912	)	$	25,299		$	(6,674	)	$	(8,363	)	$	932		$	44,330
Adjusted EBITDA1	$	32,248		$	27,502		$	17,692		$	26,860		$	(4,270	)	$	(6,516	)	$	45,670		$	47,846
Capital Expenditures***	$	10,489		$	18,744		$	13,070		$	18,445		$	282		$	-		$	23,841		$	37,189
For Nine Months Ended September 30, 2024 and 2023
		2024			2023			2024			2023			2024			2023			2024			2023
	International			International			US			US			Corporate and			Corporate and			Total			Total
	Telecom			Telecom			Telecom			Telecom			Other*			Other*			ATN			ATN
Total Revenue:	$	282,697		$	276,267		$	265,830		$	286,983		$	-		$	-		$	548,527		$	563,250
Mobility		79,657			80,754			2,312			3,081			-			-			81,969			83,835
Fixed		185,295			178,546			161,392			175,346			-			-			346,687			353,892
Carrier Services		10,481			11,011			89,539			95,978			-			-			100,020			106,989
Construction		-			-			2,609			3,648			-			-			2,609			3,648
All other		7,264			5,956			9,978			8,930			-			-			17,242			14,886
Operating Income (Loss)	$	56,944		$	41,177		$	(42,852	)	$	(3,719	)	$	(23,559	)	$	(27,547	)	$	(9,467	)	$	9,911
EBITDA**	$	108,512		$	84,807		$	18,361		$	67,126		$	(23,229	)	$	(25,517	)	$	103,644		$	126,416
Adjusted EBITDA1	$	94,808		$	85,089		$	60,313		$	72,443		$	(17,260	)	$	(19,097	)	$	137,861		$	138,435
Capital Expenditures***	$	39,440		$	57,610		$	44,371		$	69,030		$	1,860		$	-		$	85,671		$	126,640

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments.** See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure***Excludes government capital program amounts disbursed, and amounts received.

ATN’s Strategic Plan and Key Performance Indicators

The Company is in the final quarter of its three-year strategic plan initiated in 2021 to accelerate investments in its high-speed data footprint and grow high speed broadband subscribers. During this final year of the plan, the Company is transitioning away from a period of heavy investments to focus more on margin and cash flow improvement. The Company believes these efforts will allow it to improve returns to shareholders.

Operating Metrics

Operating Metrics
	2024		2024		2024		2023		2023		Q3 2024
	Q3		Q2		Q1		Q4		Q3		vs. Q3 2023
High-Speed Data* Broadband Homes Passed	399,500		396,100		386,300		367,200		333,500		20	%
High-Speed Data* Broadband Customers	141,500		142,000		138,700		135,900		132,900		6	%
Broadband Homes Passed	798,400		803,300		789,700		768,900		746,600		7	%
Broadband Customers	206,400		213,000		214,100		214,400		213,900		-4	%
Fiber Route Miles	11,901		11,728		11,692		11,655		11,575		3	%
International Mobile Subscribers
Pre-Paid	336,400		339,000		346,400		350,700		345,500		-3	%
Post-Paid	58,700		57,900		57,300		57,000		55,600		6	%
Total	395,100		396,900		403,700		407,700		401,100		-1	%
Blended Churn	3.47	%	3.44	%	3.34	%	3.33	%	3.76	%

*High-Speed Data is defined as download speeds 100 Mbps or greater and High-Speed Data Broadband Customers as subscribers connected to our high-speed networks regardless of the speed of plan selected.

Note: Data may differ from prior periods to reflect more accurate data and/or changes in calculation methodology and process.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash as of September 30, 2024, was $116.8 million and total debt was $568.9 million, versus $62.2 million of cash, cash equivalents and restricted cash and $516.9 million of total debt on December 31, 2023.

Net cash provided by operating activities was $97.4 million for the nine months ended September 30, 2024, compared with net cash provided by operating activities of $89.5 million in the prior year period.   

Capital expenditures were $85.7 million net of $71.8 million of reimbursable capital expenditures for the nine months ended September 30, 2024, versus $126.6 million, net of $14.3 million of reimbursable capital expenditures in the prior year period.

Quarterly Dividends and Stock Repurchases

Quarterly dividends of $0.24 per share were paid on October 4, 2024 on all common shares outstanding to stockholders of record as of September 30, 2024.

Updates Full-Year 2024 Guidance and Outlook

The Company has updated its revenue, adjusted EBITDA and net debt ratio guidance ranges and reiterated its capital expenditure guidance range for the full year ended December 31, 2024, as follows:

Revenue (excluding construction revenue)	$720 million to $730 million (previously $730 million to $750 million)	Full-year 2024
Adjusted EBITDA1	$182 million to $188 million (previously $190 million to $200 million)	Full-year 2024
Capital Expenditures	$100 million to $110 million	Full-year 2024
Net Debt Ratio3	2.3x to 2.6x (previously 2.25x to 2.50x)	Exiting 2024

Longer term, the Company continues to prioritize increasing cash flow and driving positive returns through realized efficiencies that leverage ATN’s high-quality assets. In 2025, the Company expects internally funded capital investments to be in the range of 10% to 15% of revenues and supported by cash flow from operations.

For the Company’s full-year 2024 outlook for 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 the description of the calculation of Net Debt Ratio.

Conference Call Information

Call Date: Wednesday, October 30, 2024Call Time: 10:00 a.m. ETWebcast Link: https://edge.media-server.com/mmc/p/i66c89kiLive Call Participant Link: https://register.vevent.com/register/BIbf889f89a57e4183ba9dbe6725fa759d

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.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a leading provider of digital infrastructure and communications services for all. The Company operates 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.

Use of Non-GAAP Financial Measures and Definition of Terms

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, Net Debt, and Net Debt Ratio in this release and the tables included herein.

EBITDA is defined as Operating income (loss) before depreciation and amortization expense.

Adjusted EBITDA is defined as Operating income (loss) before depreciation and amortization expense, transaction-related charges, restructuring and reorganization expenses, one-time impairment or special charges, non-cash stock-based compensation, and the gain (loss) on disposition of assets and transfers.

Net Debt is defined as total debt less cash and cash equivalents and restricted cash.

Net Debt Ratio is defined as Net Debt divided by the sum of the trailing four quarters 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.

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 its strategic investment plan, its future revenues, operating income, operating margin, cash flows, network and operating costs, EBITDA, Adjusted EBITDA, Net Debt, Net Debt Ratio, cost management initiatives, and capital investments; demand for the Company’s services and industry trends; the timing of revenue, the Company’s liquidity; the expansion of the Company’s customer base and networks; receipt of certain government grants and management’s plans, expectations 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 the Company’s operations, including operating margins, revenues, capital expenditures, the impact of cost savings initiatives, the ability to expand its carrier and business customer sales, and the retention of and future growth of the Company’s subscriber base and ARPU; (2) 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; (3) the Company’s ability to satisfy the needs and demands of the Company’s major carrier customers; (4) the Company’s ability to realize expansion plans for customer growth on its existing assets; (5) the adequacy and expansion capabilities of the Company’s network capacity and customer service system to support the Company’s customer growth; (6) 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; (7) the Company’s continued access to capital and credit markets on terms it deems favorable; (8) 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; (9) the Company’s ability to successfully transition its US Telecom business away from wholesale mobility to other carrier, enterprise, and consumer-based services; (10) ongoing risk of an economic downturn, political, geopolitical and other risks and opportunities facing the Company’s operations, including those resulting from the continued inflation and other macroeconomic headwinds including increased costs and supply chain disruptions; (11) management transitions, and the loss of, or an inability to recruit skilled personnel in the Company’s various jurisdictions, including key members of management; (12) the Company’s ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (13) the occurrence of weather events and natural catastrophes and the Company’s ability to secure the appropriate level of insurance coverage for these assets; and the impact of such events on the timing of project implementation and corresponding revenue, and (14) increased competition. 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, 2023, filed with the SEC on March 15, 2024, 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.

Contact
Michele Satrowsky	Adam Rogers
Corporate Treasurer	Investor Relations
ATN International, Inc.	Sharon Merrill Advisors, Inc.
978-619-1300	ATNI@investorrelations.com

Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
	September 30,				December 31,
		2024				2023
Assets:
Cash and cash equivalents	$	100,689			$	49,225
Restricted cash		16,075				12,942
Customer receivable		7,924				7,249
Other current assets		200,918				211,856
Total current assets		325,606				281,272
Property, plant and equipment, net		1,049,002				1,080,659
Operating lease right-of-use assets		99,231				99,335
Customer receivable - long term		41,925				45,676
Goodwill and other intangible assets, net		132,042				173,008
Other assets		103,575				103,764
Total assets	$	1,751,381			$	1,783,714
Liabilities, redeemable non-controlling interests and stockholders’ equity:
Current portion of long-term debt	$	7,413			$	24,290
Current portion of customer receivable credit facility		7,935				7,110
Taxes payable		10,685				10,876
Current portion of lease liabilities		15,310				15,164
Other current liabilities		227,087				235,754
Total current liabilities		268,430				293,194
Long-term debt, net of current portion	$	561,493			$	492,580
Customer receivable credit facility, net of current portion		38,274				38,943
Deferred income taxes		1,878				19,775
Lease liabilities		77,033				76,936
Other long-term liabilities		135,067				138,566
Total liabilities		1,082,175				1,059,994
Redeemable non-controlling interests		75,083				85,917
Stockholders' equity:
Total ATN International, Inc.’s stockholders’ equity		490,795				541,073
Non-controlling interests		103,328				96,730
Total stockholders' equity		594,123				637,803
Total liabilities, redeemable non-controlling interests and stockholders’ equity	$	1,751,381			$	1,783,714

Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
	Three Months Ended,								Nine Months Ended,
	September 30,								September 30,
		2024				2023				2024				2023
Revenues:
Communications services	$	174,422			$	184,601			$	533,055			$	547,484
Construction		203				2,038				2,609				3,648
Other		3,826				4,397				12,863				12,118
Total revenue		178,451				191,036				548,527				563,250
Operating expenses (excluding depreciation and amortization unless otherwise indicated):
Cost of services and other		78,973				80,367				235,499				237,125
Cost of construction revenue		205				2,031				2,588				3,635
Selling, general and administrative		53,601				60,792				172,580				184,055
Stock-based compensation		1,831				1,956				6,521				6,473
Transaction-related charges		3,791				45				3,809				496
Restructuring and reorganization expenses		2,345				1,383				3,535				4,640
Depreciation		37,299				34,370				107,196				106,991
Amortization of intangibles from acquisitions		1,991				3,124				5,916				9,514
(Gain) loss on disposition of assets and transfers		1,504				132				(14,919	)			410
Goodwill impairment		35,269				-				35,269				-
Total operating expenses		216,809				184,200				557,994				553,339
Operating income (loss)		(38,358	)			6,836				(9,467	)			9,911
Other income (expense):
Interest expense, net		(12,483	)			(11,309	)			(35,753	)			(30,338	)
Other income (expense)		(645	)			213				(1,052	)			2,623
Other income (expense), net		(13,128	)			(11,096	)			(36,805	)			(27,715	)
Loss before income taxes		(51,486	)			(4,260	)			(46,272	)			(17,804	)
Income tax benefit		(12,035	)			(542	)			(10,213	)			(6,369	)
Net loss		(39,451	)			(3,718	)			(36,059	)			(11,435	)
Net loss attributable to non-controlling interests, net		6,760				134				6,059				2,733
Net loss attributable to ATN International, Inc. stockholders	$	(32,691	)		$	(3,584	)		$	(30,000	)		$	(8,702	)
Net loss per weighted average share attributable to ATN International, Inc. stockholders:
Basic	$	(2.26	)		$	(0.31	)		$	(2.24	)		$	(0.80	)
Diluted	$	(2.26	)		$	(0.31	)		$	(2.24	)		$	(0.80	)
Weighted average common shares outstanding:
Basic		15,114				15,601				15,268				15,666
Diluted		15,114				15,601				15,268				15,666

Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statements
(in Thousands)
	Nine Months Ended September 30,
		2024				2023
Net loss	$	(36,059	)		$	(11,435	)
Depreciation		107,196				106,991
Amortization of intangibles from acquisitions		5,916				9,514
Provision for doubtful accounts		4,209				4,014
Amortization of debt discount and debt issuance costs		1,915				1,806
(Gain) Loss on disposition of assets and transfers		(14,919	)			410
Stock-based compensation		6,521				6,472
Deferred income taxes		(14,409	)			(9,452	)
Loss on pension settlement		-				369
Gain on equity investments		(484	)			(2,752	)
Loss on extinguishment of debt		760				-
Goodwill impairment		35,269				-
Decrease in customer receivable		3,076				1,185
Change in prepaid and accrued income taxes		(3,164	)			3,602
Change in other operating assets and liabilities		1,599				(21,240	)
Net cash provided by operating activities		97,426				89,484
Capital expenditures		(85,672	)			(126,640	)
Government capital programs:
Amounts disbursed		(71,849	)			(14,261	)
Amounts received		72,531				16,065
Net proceeds from sale of assets		17,910				-
Purchases and sales of strategic investments		790				(1,055	)
Purchases and sales of investments		505				-
Acquisition of business		-				1,314
Other		(573	)			-
Net cash used in investing activities		(66,358	)			(124,577	)
Dividends paid on common stock		(11,047	)			(9,918	)
Distributions to non-controlling interests		(2,226	)			(1,447	)
Finance lease payments		(1,357	)			(932	)
Term loan - borrowings		300,000				130,000
Term loan - repayments		(239,430	)			(3,532	)
Payment of debt issuance costs		(6,548	)			(3,708	)
Revolving credit facilities – borrowings		90,000				126,893
Revolving credit facilities – repayments		(94,002	)			(174,292	)
Proceeds from customer receivable credit facility		5,740				4,300
Repayment of customer receivable credit facility		(5,669	)			(4,998	)
Purchases of common stock - stock-based compensation		(1,932	)			(1,473	)
Purchases of common stock - share repurchase plan		(10,000	)			(11,679	)
Repurchases of non-controlling interests, net		-				(762	)
Net cash provided by financing activities		23,529				48,452
Net change in total cash, cash equivalents and restricted cash		54,597				13,359
Total cash, cash equivalents and restricted cash, beginning of period		62,167				59,728
Total cash, cash equivalents and restricted cash, end of period	$	116,764			$	73,087

Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended September 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	5,007		$	68		$	-		$	5,075
Consumer		21,802			638			-			22,440
Total	$	26,809		$	706		$	-		$	27,515
Fixed
Business	$	18,692		$	29,575		$	-		$	48,267
Consumer		43,067			21,440			-			64,507
Total	$	61,759		$	51,015		$	-		$	112,774
Carrier Services	$	3,272		$	29,430		$	-		$	32,702
Other		1,175			255			-			1,430
Total Communications Services	$	93,015		$	81,406		$	-		$	174,421
Construction	$	-		$	203		$	-		$	203
Managed services	$	1,266		$	2,561		$	-		$	3,827
Total Other	$	1,266		$	2,561		$	-		$	3,827
Total Revenue	$	94,281		$	84,170		$	-		$	178,451
Depreciation	$	18,414		$	18,681		$	204		$	37,299
Amortization of intangibles from acquisitions	$	251		$	1,740		$	-		$	1,991
Total operating expenses	$	81,428		$	128,503		$	6,878		$	216,809
Operating income (loss)	$	12,853		$	(44,333	)	$	(6,878	)	$	(38,358	)
Net (income) loss attributable to non-controlling interests	$	(1,893	)	$	8,653		$	-		$	6,760
Non GAAP measures:
EBITDA (2)	$	31,518		$	(23,912	)	$	(6,674	)	$	932
Adjusted EBITDA (1)	$	32,248		$	17,692		$	(4,270	)	$	45,670
Balance Sheet Data (at September 30, 2024):
Cash, cash equivalents and restricted cash	$	52,043		$	62,772		$	1,949		$	116,764
Total current assets		149,987			167,440			8,179			325,606
Fixed assets, net		468,559			573,997			6,446			1,049,002
Total assets		695,127			967,028			89,226			1,751,381
Total current liabilities		96,384			140,689			31,357			268,430
Total debt, including current portion		59,824			316,672			192,409			568,905
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	3,818		$	129		$	-		$	3,947
Consumer		23,973			817			-			24,790
Total	$	27,791		$	946		$	-		$	28,737
Fixed
Business	$	18,016		$	35,680		$	-		$	53,696
Consumer		41,967			22,662			-			64,629
Total	$	59,983		$	58,342		$	-		$	118,325
Carrier Services	$	3,441		$	32,319		$	-		$	35,760
Other		1,236			544			-			1,780
Total Communications Services	$	92,451		$	92,151		$	-		$	184,602
Construction	$	-		$	2,038		$	-		$	2,038
Managed services	$	1,427		$	2,969		$	-		$	4,396
Total Other	$	1,427		$	2,969		$	-		$	4,396
Total Revenue	$	93,878		$	97,158		$	-		$	191,036
Depreciation	$	14,354		$	19,397		$	618		$	34,369
Amortization of intangibles from acquisitions	$	240		$	2,884		$	-		$	3,124
Total operating expenses	$	81,078		$	94,140		$	8,981		$	184,199
Operating income (loss)	$	12,800		$	3,018		$	(8,981	)	$	6,837
Net (income) loss attributable to non-controlling interests	$	(1,794	)	$	1,928		$	-		$	134
Non GAAP measures:
EBITDA (2)	$	27,394		$	25,299		$	(8,363	)	$	44,330
Adjusted EBITDA (1)	$	27,502		$	26,860		$	(6,516	)	$	47,846
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the nine months ended September 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	14,747		$	209		$	-		$	14,956
Consumer		64,910			2,103			-			67,013
Total	$	79,657		$	2,312		$	-		$	81,969
Fixed
Business	$	55,939		$	95,359		$	-		$	151,298
Consumer		129,356			66,033			-			195,389
Total	$	185,295		$	161,392		$	-		$	346,687
Carrier Services	$	10,481		$	89,539		$	-		$	100,020
Other		3,038			1,341			-			4,379
Total Communications Services	$	278,471		$	254,584		$	-		$	533,055
Construction	$	-		$	2,609		$	-		$	2,609
Managed services	$	4,226		$	8,637		$	-		$	12,863
Total Other	$	4,226		$	8,637		$	-		$	12,863
Total Revenue	$	282,697		$	265,830		$	-		$	548,527
Depreciation	$	50,814		$	56,052		$	330		$	107,196
Amortization of intangibles from acquisitions	$	754		$	5,161		$	-		$	5,915
Total operating expenses	$	225,753		$	308,682		$	23,559		$	557,994
Operating income (loss)	$	56,944		$	(42,852	)	$	(23,559	)	$	(9,467	)
Net (income) loss attributable to non-controlling interests	$	(8,467	)	$	14,526		$	-		$	6,059
Non GAAP measures:
EBITDA (2)	$	108,512		$	18,361		$	(23,229	)	$	103,644
Adjusted EBITDA (1)	$	94,808		$	60,313		$	(17,260	)	$	137,861
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the nine months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	11,484		$	415		$	-		$	11,899
Consumer		69,270			2,666			-			71,936
Total	$	80,754		$	3,081		$	-		$	83,835
Fixed
Business	$	52,602		$	107,494		$	-		$	160,096
Consumer		125,944			67,852			-			193,796
Total	$	178,546		$	175,346		$	-		$	353,892
Carrier Services	$	11,011		$	95,978		$	-		$	106,989
Other		2,084			684			-			2,768
Total Communications Services	$	272,395		$	275,089		$	-		$	547,484
Construction	$	-		$	3,648		$	-		$	3,648
Managed services	$	3,872		$	8,246		$	-		$	12,118
Total Other	$	3,872		$	8,246		$	-		$	12,118
Total Revenue	$	276,267		$	286,983		$	-		$	563,250
Depreciation	$	42,646		$	62,315		$	2,030		$	106,991
Amortization of intangibles from acquisitions	$	984		$	8,530		$	-		$	9,514
Total operating expenses	$	235,090		$	290,702		$	27,547		$	553,339
Operating income (loss)	$	41,177		$	(3,719	)	$	(27,547	)	$	9,911
Net (income) loss attributable to non-controlling interests	$	(5,650	)	$	8,383		$	-		$	2,733
Non GAAP measures:
EBITDA (2)	$	84,807		$	67,126		$	(25,517	)	$	126,416
Adjusted EBITDA (1)	$	85,089		$	72,443		$	(19,097	)	$	138,435
Balance Sheet Data (at December 31, 2023):
Cash, cash equivalents and restricted cash	$	26,354		$	33,574		$	2,239		$	62,167
Total current assets		107,469			162,768			11,035			281,272
Fixed assets, net		481,911			593,833			4,915			1,080,659
Total assets		672,171			1,019,924			91,619			1,783,714
Total current liabilities		86,540			169,297			37,357			293,194
Total debt, including current portion		64,254			293,607			159,009			516,870
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments

Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the three months ended September 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	12,853		$	(44,333	)	$	(6,878	)	$	(38,358	)
Depreciation expense		18,414			18,681			204			37,299
Amortization of intangibles from acquisitions		251			1,740			-			1,991
EBITDA	$	31,518		$	(23,912	)	$	(6,674	)	$	932
Stock-based compensation		102			157			1,571			1,830
Restructuring and reorganization expenses		299			1,167			879			2,345
Transaction-related charges		-			3,789			1			3,790
(Gain) Loss on disposition of assets and transfers		329			1,222			(47	)		1,504
Goodwill impairment		-			35,269			-			35,269
ADJUSTED EBITDA	$	32,248		$	17,692		$	(4,270	)	$	45,670
For the three months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	12,800		$	3,018		$	(8,981	)	$	6,837
Depreciation expense		14,354			19,397			618			34,369
Amortization of intangibles from acquisitions		240			2,884			-			3,124
EBITDA	$	27,394		$	25,299		$	(8,363	)	$	44,330
Stock-based compensation		130			23			1,802			1,955
Restructuring and reorganization expenses		-			1,383			-			1,383
Transaction-related charges		-			-			45			45
(Gain) Loss on disposition of assets and transfers		(22	)		155			-			133
ADJUSTED EBITDA	$	27,502		$	26,860		$	(6,516	)	$	47,846
Table 5 (continued)
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the nine months ended September 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	56,944		$	(42,852	)	$	(23,559	)	$	(9,467	)
Depreciation expense		50,814			56,052			330			107,196
Amortization of intangibles from acquisitions		754			5,161			-			5,915
EBITDA	$	108,512		$	18,361		$	(23,229	)	$	103,644
Stock-based compensation		319			484			5,718			6,521
Restructuring and reorganization expenses		1,489			1,167			879			3,535
Transaction-related charges		-			3,789			20			3,809
(Gain) Loss on disposition of assets and transfers		(15,512	)		1,243			(648	)		(14,917	)
Goodwill impairment		-			35,269			-			35,269
ADJUSTED EBITDA	$	94,808		$	60,313		$	(17,260	)	$	137,861
For the nine months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	41,177		$	(3,719	)	$	(27,547	)	$	9,911
Depreciation expense		42,646			62,315			2,030			106,991
Amortization of intangibles from acquisitions		984			8,530			-			9,514
EBITDA	$	84,807		$	67,126		$	(25,517	)	$	126,416
Stock-based compensation		307			109			6,057			6,473
Restructuring and reorganization expenses		-			4,640			-			4,640
Transaction-related charges		-			133			363			496
(Gain) Loss on disposition of assets and transfers		(25	)		435			-			410
ADJUSTED EBITDA	$	85,089		$	72,443		$	(19,097	)	$	138,435

Table 6
ATN International, Inc.
Non GAAP Measure - Net Debt Ratio
(in Thousands)
	September 30,				December 31,
		2024				2023
Current portion of long-term debt *	$	7,413			$	24,290
Long-term debt, net of current portion *		561,493				492,580
Total debt	$	568,906			$	516,870
Less: Cash, cash equivalents and restricted cash		116,764				62,167
Net Debt	$	452,142			$	454,703
Adjusted EBITDA - for the four quarters ended	$	188,877			$	189,451
Net Debt Ratio		2.39				2.40
* Excludes Customer receivable credit facility

_____________________________________1 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP measures.2 For the Company’s Adjusted EBITDA Guidance, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measure or reconciliations to such GAAP financial measure, 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 EBITDA3 Please see “Use of Non-GAAP Financial Measures” below for a full definition of Net Debt Ratio.