ATN Reports Second Quarter 2024 Results; Reiterates Full-Year 2024 Outlook

Leveraging “First-to-Fiber” and “Glass & Steel™” Strategic Investments to Deliver Growth in High-Speed Data Subscribers and Network Reach   

  • Total high-speed broadband subscribers increased by 9%
  • Broadband homes passed by high-speed data services expanded by 22%
  • Capital expenditures were $61.8 million (net of $46.2 million reimbursements) for the first six months of 2024

International Telecom Segment Growth and Cost Management Benefit Q2 2024 Results

  • Second quarter consolidated revenues decreased 2% to $183.3 million, in line with expectations
  • International Telecom segment revenues rose 4% supported by growth in consumer and business fixed revenues, and business mobility revenue
  • US Telecom segment revenues were down 7% due primarily to conclusion of Emergency Connectivity Fund (ECF) program
  • Second quarter net income increased to $9.0 million, or $0.50 per diluted share inclusive of a $15.9 million gain on the sale of a non-core asset
  • Operating income increased to $24.3 million
  • Adjusted EBITDA1 increased 6% to $48.7 million

Reaffirms 2024 Outlook
The Company reiterated expectations for full-year 2024 with:

  • Revenue in the range of $730 million to $750 million, excluding construction revenue
  • Adjusted EBITDA2 in the range of $190 million to $200 million
  • Capital Expenditures in the range of $100 million to $110 million, net of reimbursements
  • Net Debt Ratio3 in the range of 2.25x to 2.50x exiting 2024

Earnings Conference Call

BEVERLY, Mass., July 24, 2024 (GLOBE NEWSWIRE) -- 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 June 30, 2024.

Remarks by Brad Martin, ATN Chief Executive Officer

“We are making progress in our efforts to leverage our investments to deliver top line growth while improving operating efficiency. Our second quarter performance is driving the business toward that goal as we increased consolidated Adjusted EBITDA by 6%, delivered International Telecom segment top-line and Adjusted EBITDA growth, and benefited from our cost management efforts. Our US Telecom segment’s performance was in line with our expectations, reflecting the impact of the expiration of the ECF program, as previously signaled.″

“We continue to enhance the performance and longevity of ATN’s network and improve the quality of our revenue streams through the execution of our First-to-Fiber and Glass & Steel™ strategies. In the second quarter, we grew homes passed by high-speed broadband and had a healthy conversion of subscribers to our high-value high-speed broadband networks. In mobility, we continue to convert our mobility subscriber base to higher margin pre-paid and post-paid plans, expand data usage, and increase business subscribers.”  

“Looking ahead, we are reiterating our fiscal year 2024 outlook based on our first half performance and the progress we are making executing to our plan. As we near the end of our three-year strategy, we are focusing on maximizing the investments in our upgraded network assets while supporting further expansion at more normalized capex levels supplemented by U.S. government funded infrastructure programs. We believe that our high-speed network expansion and ongoing focus on margin improvement provides a solid foundation for driving strong, sustainable recurring revenues, durable free cash flow, and enhanced shareholder value over the long-term.”

Second Quarter 2024 Financial Results

Consolidated revenues were $183.3 million, down 2% versus $186.4 million in the year-ago quarter. This decrease primarily reflects the impact of the end of the ECF program in the US Telecom segment, which offset the increase in fixed revenues in the International Telecom segment.

Operating income was $24.3 million in the second quarter versus $2.4 million in the year-ago quarter. The increase in operating income was primarily due to a $15.9 million gain on the disposition of a non-core asset, a $4.3 million reduction in year-over-year selling, general and administrative expenses, and a $1.9 million reduction in depreciation and amortization expense.

Net income attributable to ATN stockholders in the second quarter of 2024 was $9.0 million, or income of $0.50 per diluted share compared with a net income attributable to ATN stockholders of $0.8 million, or $(0.03) loss per share, in the year-ago quarter. The increase year-over-year was the result of an increase in operating income, which more than offset the increase in interest expense. In all periods, the income or loss per share calculation includes the impact of preferred dividends that are not included in the net income (loss) calculation.

Adjusted EBITDA1 increased to $48.7 million in the second quarter of 2024 from $45.8 million in the year-ago quarter due to lower operating expenses, which more than offset the decrease in revenue.

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 June 30, 2024 and 2023
  
           
 202420232024 2023  2024  2023 20242023  
 InternationalInternationalUSUSCorporate andCorporate andTotalTotal  
 TelecomTelecomTelecomTelecomOther*Other*ATNATN  
Total Revenue:$ 95,357 $ 91,981 $ 87,924 $ 94,460 $ - $ - $ 183,281 $ 186,441   
Mobility 26,811  26,856  769  977  -  -  27,580  27,833   
Fixed 62,215  59,673  52,491  58,103  -  -  114,706  117,776   
Carrier Services 3,636  3,879  30,056  31,576  -  -  33,692  35,455   
Construction -  -  820  1,020  -  -  820  1,020   
All other 2,695  1,573  3,788  2,784  -  -  6,483  4,357   
           
Operating Income (Loss)$32,405 $14,552 $884 $(2,394)$(8,973)$(9,720)$24,316 $2,438   
EBITDA**$48,934 $29,022 $21,811 $21,816 $(8,926)$(9,039)$61,819 $41,799   
Adjusted EBITDA1$33,285 $29,128 $21,919 $22,776 $(6,534)$(6,113)$48,670 $45,791   
Capital Expenditures***$12,035 $17,408 $13,540 $21,450 $238 $(5)$25,813 $38,853   
           
           
For Six Months Ended June 30, 2024 and 2023
  
           
 202420232024 2023  2024  2023 20242023  
 InternationalInternationalUSUSCorporate andCorporate andTotalTotal  
 TelecomTelecomTelecomTelecomOther*Other*ATNATN  
Total Revenue:$ 188,416 $ 182,389 $ 181,660 $ 189,825 $ - $ - $ 370,076 $ 372,214   
Mobility 52,848  52,963  1,606  2,136  -  -  54,454  55,099   
Fixed 123,536  118,563  110,376  117,004  -  -  233,912  235,567   
Carrier Services 7,209  7,570  60,109  63,660  -  -  67,318  71,230   
Construction -  -  2,406  1,610  -  -  2,406  1,610   
All other 4,823  3,293  7,163  5,415  -  -  11,986  8,708   
           
Operating Income (Loss)$44,090 $28,377 $1,482 $(6,737)$(16,682)$(18,566)$28,890 $3,074   
EBITDA**$76,993 $57,413 $42,275 $41,826 $(16,557)$(17,154)$102,711 $82,085   
Adjusted EBITDA1$62,558 $57,586 $42,622 $45,583 $(12,992)$(12,581)$92,188 $90,588   
Capital Expenditures***$28,951 $38,906 $31,299 $50,584 $1,579 $(40)$61,829 $89,450   
           

* 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 half-way through the final year 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 reducing capital expenditures to approach more normalized spending levels and plans to augment further network expansion with previously announced and future grant funding.

Operating Metrics

          
 Operating Metrics
  
          
  20242024202320232023Q2 2024  
  Q2Q1Q4Q3Q2 vs. Q2 2023  
          
 High-Speed Data* Broadband Homes Passed 403,500 386,300 367,200 333,500 330,500 22%  
 High-Speed Data* Broadband Customers141,000 137,700 135,900 132,900 129,100 9%  
          
 Broadband Homes Passed 803,300 789,700 768,900 746,600 746,800 8%  
 Broadband Customers212,900 214,000 214,400 213,900 215,500 -1%  
          
 Fiber Route Miles11,728 11,692 11,655 11,575 11,561 1%  
          
 International Mobile Subscribers        
 Pre-Paid339,000 346,400 350,700 345,500 339,600 -0%  
 Post-Paid57,900 57,300 57,000 55,600 58,600 -1%  
 Total396,900 403,700 407,700 401,100 398,200 -0%  
          
 Blended Churn3.44%3.34%3.33%3.76%2.69%   
          

*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 June 30, 2024, was $73.3 million and total debt was $540.8 million, versus $67.2 million of cash, cash equivalents and restricted cash and $482.1 million of total debt at the end of the year-ago quarter.

Net cash provided by operating activities was $53.5 million for the six months ended June 30, 2024, compared with net cash provided by operating activities of $60.3 million in the prior year period.   

Capital expenditures were $61.8 million net of $46.2 million of reimbursable capital expenditures for the six months ended June 30, 2024, versus $89.5 million, net of $7.0 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 July 10, 2024, on all common shares outstanding to stockholders of record as of June 30, 2024.

Share repurchases made by the Company during the second quarter of 2024 totaled $9.9 million. There is $15 million remaining under the share repurchase program authorized in December 2023.

Reaffirms Full-Year 2024 Guidance and Outlook

The Company is reaffirming its guidance and outlook for the full-year ended December 31, 2024, as follows:

Revenue (excluding construction revenue)$730 million to $750 millionFull-year 2024
Adjusted EBITDA1$190 million to $200 millionFull-year 2024
Capital Expenditures$100 million to $110 millionFull-year 2024
Net Debt Ratio 32.25x to 2.50xExiting 2024
   

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

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: Thursday, July 25, 2024
Call Time: 10:00 a.m. ET
Webcast Link:  https://edge.media-server.com/mmc/p/x3cd8cb6

Live Call Participant Linkhttps://register.vevent.com/register/BIbb2582646cf142d1bebb5428692491b1

Webcast Link Instructions
You 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 expenses, one-time impairment or special charges, non-cash stock-based compensation, and the gain (loss) on disposition of assets.

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, 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 its fiber markets; (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 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
Corporate Treasurer
ATN International, Inc.
978-619-1300
Ian Rhoades
Investor Relations
Sharon Merrill Advisors, Inc.
ATNI@investorrelations.com

 

      
   
 Table 1 
 ATN International, Inc. 
 Unaudited Condensed Consolidated Balance Sheets 
 (in Thousands) 
      
  June 30, December 31, 
 20242023 
 Assets:    
 Cash and cash equivalents$58,932 $49,225 
 Restricted cash 14,321  12,942 
 Customer receivable 7,746  7,249 
 Other current assets 214,897  211,856 
      
 Total current assets 295,896  281,272 
      
 Property, plant and equipment, net 1,061,322  1,080,659 
 Operating lease right-of-use assets 97,738  99,335 
 Customer receivable - long term 43,761  45,676 
 Goodwill and other intangible assets, net 169,210  173,008 
 Other assets 104,414  103,764 
      
 Total assets$1,772,341 $1,783,714 
      
 Liabilities, redeemable non-controlling interests and stockholders’ equity:    
 Current portion of long-term debt$16,573 $24,290 
 Current portion of customer receivable credit facility 7,659  7,110 
 Taxes payable 11,994  10,876 
 Current portion of lease liabilities 15,074  15,164 
 Other current liabilities 217,585  235,754 
      
 Total current liabilities 268,885  293,194 
      
 Long-term debt, net of current portion$524,262 $492,580 
 Customer receivable credit facility, net of current portion 38,442  38,943 
 Deferred income taxes 17,754  19,775 
 Lease liabilities 75,592  76,936 
 Other long-term liabilities 135,316  138,566 
      
 Total liabilities 1,060,251  1,059,994 
      
 Redeemable non-controlling interests 83,325  85,917 
      
 Stockholders' equity:    
 Total ATN International, Inc.’s stockholders’ equity 526,771  541,073 
 Non-controlling interests 101,994  96,730 
      
 Total stockholders' equity 628,765  637,803 
      
 Total liabilities, redeemable non-controlling interests and stockholders’ equity$1,772,341 $1,783,714 
      


             
           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, 
      2024   2023   2024   2023  
 Revenues:           
 Communications services  $177,365  $181,576  $358,633  $362,883  
 Construction   820   1,020   2,406   1,610  
 Other   5,096   3,845   9,037   7,721  
 Total revenue   183,281   186,441   370,076   372,214  
            
 Operating expenses (excluding depreciation and amortization unless otherwise indicated):          
 Cost of services and other   76,137   77,718   156,527   156,759  
 Cost of construction revenue    813   1,016   2,382   1,604  
 Selling, general and administrative   57,661   61,914   118,979   123,262  
 Stock-based compensation    2,781   2,739   4,690   4,517  
 Transaction-related charges   -   438   19   451  
 Restructuring expenses    -   370   1,190   3,257  
 Depreciation    35,558   36,217   69,897   72,621  
 Amortization of intangibles from acquisitions    1,945   3,144   3,924   6,391  
 (Gain) loss on disposition of assets    (15,930)  445   (16,422)  278  
 Total operating expenses   158,965   184,001   341,186   369,140  
            
 Operating income   24,316   2,440   28,890   3,074  
            
 Other income (expense):          
 Interest expense, net   (12,196)  (10,404)  (23,271)  (19,029) 
 Other income (expense)   (579)  2,216   (406)  2,411  
 Other income (expense), net   (12,775)  (8,188)  (23,677)  (16,618) 
            
 Income (loss) before income taxes   11,541   (5,748)  5,213   (13,544) 
 Income tax expense (benefit)   204   (5,087)  1,822   (5,827) 
            
 Net income (loss)   11,337   (661)  3,391   (7,717) 
             
 Net income (loss) attributable to non-controlling interests, net    (2,334)  1,428   (701)  2,599  
             
 Net income (loss) attributable to ATN International, Inc. stockholders  $9,003  $767  $2,690  $(5,118) 
            
 Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:           
             
 Basic   $0.50  $(0.03) $(0.00) $(0.48) 
            
 Diluted   $0.50  $(0.03) $(0.00) $(0.48) 
            
 Weighted average common shares outstanding:          
 Basic    15,254   15,719   15,346   15,726  
 Diluted    15,255   15,719   15,360   15,726  
             


  
Table 3 
ATN International, Inc. 
Unaudited Condensed Consolidated Cash Flow Statements 
(in Thousands) 
   
 Six Months Ended June 30, 
  2024   2023  
     
Net income (loss)$3,391  $(7,717) 
Depreciation 69,897   72,621  
Amortization of intangibles from acquisitions 3,924   6,391  
Provision for doubtful accounts 2,855   2,463  
Amortization of debt discount and debt issuance costs 1,249   1,162  
(Gain) Loss on disposition of assets (16,422)  278  
Stock-based compensation 4,690   4,517  
Deferred income taxes (2,550)  (6,616) 
Loss on pension settlement -   369  
Gain on equity investments (218)  (2,501) 
Decrease in customer receivable 1,418   1,186  
Change in prepaid and accrued income taxes 273   3,302  
Change in other operating assets and liabilities (14,975)  (15,126) 
     
Net cash provided by operating activities 53,532   60,329  
     
Capital expenditures (61,830)  (89,451) 
Government capital programs:    
Amounts disbursed (46,198)  (6,986) 
Amounts received 48,564   593  
Net proceeds from sale of assets 17,910   -  
Purchases of spectrum licenses and other intangible assets (573)  -  
Purchases and sales of investments 162   (1,055) 
Acquisition of business -   1,314  
     
Net cash used in investing activities (41,965)  (95,585) 
     
Dividends paid on common stock (7,421)  (6,633) 
Distributions to non-controlling interests (2,116)  (1,447) 
Finance lease payments (915)  (481) 
Term loan - repayments (12,112)  (2,335) 
Payment of debt issuance costs (974)  (159) 
Revolving credit facilities – borrowings 75,000   88,273  
Revolving credit facilities – repayments (40,002)  (26,500) 
Proceeds from customer receivable credit facility 3,700   4,300  
Repayment of customer receivable credit facility (3,709)  (3,247) 
Purchases of common stock - stock-based compensation (1,932)  (1,433) 
Purchases of common stock - share repurchase plan (10,000)  (6,828) 
Repurchases of non-controlling interests, net -   (760) 
     
Net cash provided by (used in) financing activities (481)  42,750  
     
Net change in total cash, cash equivalents and restricted cash 11,086   7,494  
     
Total cash, cash equivalents and restricted cash, beginning of period 62,167   59,728  
     
Total cash, cash equivalents and restricted cash, end of period$73,253  $67,222  
     


    Table 4  
ATN International, Inc.  
Selected Segment Financial Information  
(In Thousands)  
       
For the three months ended June 30, 2024 is as follows:  
       
 International Telecom US Telecom Corporate and Other *Total  
       
Statement of Operations Data:      
Revenue      
Mobility      
Business$4,932 $68 $- $5,000   
Consumer 21,879  701  -  22,580   
Total$26,811 $769 $- $27,580   
       
Fixed      
Business$18,715 $30,817 $- $49,532   
Consumer 43,500  21,674  -  65,174   
Total$62,215 $52,491 $- $114,706   
       
Carrier Services$3,636 $30,056 $- $33,692   
Other 1,045  342  -  1,387   
       
Total Communications Services$93,707 $83,658 $- $177,365   
       
Construction$- $820 $- $820   
       
Managed services$1,650 $3,446 $- $5,096   
Total Other $1,650 $3,446 $- $5,096   
       
Total Revenue$95,357 $87,924 $- $183,281   
       
Depreciation$16,277 $19,234 $47 $35,558   
Amortization of intangibles from acquisitions$252 $1,693 $- $1,945   
Total operating expenses$62,952 $87,040 $8,973 $158,965   
Operating income (loss)$32,405 $884 $(8,973)$24,316   
Net (income) loss attributable to non-controlling interests$(5,137)$2,803 $- $(2,334)  
       
Non GAAP measures:      
EBITDA (2)$48,934 $21,811 $(8,926)$61,819   
Adjusted EBITDA (1)$33,285 $21,919 $(6,534)$48,670   
       
Balance Sheet Data (at June 30, 2024):      
Cash, cash equivalents and restricted cash$33,563 $36,448 $3,242 $73,253   
Total current assets 130,572  155,822  9,502  295,896   
Fixed assets, net 475,862  579,092  6,368  1,061,322   
Total assets 683,111  997,592  91,638  1,772,341   
Total current liabilities 91,529  145,856  31,500  268,885   
Total debt, including current portion 59,801  298,375  182,659  540,835   
       
* 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 June 30, 2023 is as follows:  
       
 International Telecom US Telecom Corporate and Other *Total  
Statement of Operations Data:      
Revenue      
Mobility      
Business$3,507 $114 $- $3,621   
Consumer 23,349  863  -  24,212   
Total$26,856 $977 $- $27,833   
       
Fixed      
Business$17,214 $35,495 $- $52,709   
Consumer 42,459  22,608  -  65,067   
Total$59,673 $58,103 $- $117,776   
       
Carrier Services$3,879 $31,576 $- $35,455   
Other 448  64  -  512   
       
Total Communications Services$90,856 $90,720 $- $181,576   
       
Construction$- $1,020 $- $1,020   
       
Managed services$1,125 $2,720 $- $3,845   
       
Total Other $1,125 $2,720 $- $3,845   
       
Total Revenue$91,981 $94,460 $- $186,441   
       
Depreciation$14,106 $21,430 $681 $36,217   
Amortization of intangibles from acquisitions$364 $2,780 $- $3,144   
Total operating expenses$77,429 $96,854 $9,720 $184,003   
Operating income (loss)$14,552 $(2,394)$(9,720)$2,438   
Net (income) loss attributable to non-controlling interests$(2,050)$3,478 $- $1,428   
       
Non GAAP measures:      
EBITDA (2)$29,022 $21,816 $(9,039)$41,799   
Adjusted EBITDA (1)$29,128 $22,776 $(6,113)$45,791   
       
       
(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    
       
       
       
       
ATN International, Inc.  
Selected Segment Financial Information  
(In Thousands)  
       
For the six months ended June 30, 2024 is as follows:  
       
 International Telecom US Telecom Corporate and Other *Total  
       
Statement of Operations Data:      
Revenue      
Mobility      
Business$9,740 $141 $- $9,881   
Consumer 43,108  1,465  -  44,573   
Total$52,848 $1,606 $- $54,454   
       
Fixed      
Business$37,247 $65,783 $- $103,030   
Consumer 86,289  44,593  -  130,882   
Total$123,536 $110,376 $- $233,912   
       
Carrier Services$7,209 $60,109 $- $67,318   
Other 1,863  1,086  -  2,949   
       
Total Communications Services$185,456 $173,177 $- $358,633   
       
Construction$- $2,406 $- $2,406   
       
Managed services$2,960 $6,077 $- $9,037   
Total Other $2,960 $6,077 $- $9,037   
       
Total Revenue$188,416 $181,660 $- $370,076   
       
Depreciation$32,400 $37,372 $125 $69,897   
Amortization of intangibles from acquisitions$503 $3,421 $- $3,924   
Total operating expenses$144,326 $180,178 $16,682 $341,186   
Operating income (loss)$44,090 $1,482 $(16,682)$28,890   
Net (income) loss attributable to non-controlling interests$(6,574)$5,872 $- $(702)  
       
Non GAAP measures:      
EBITDA (2)$76,993 $42,275 $(16,557)$102,711   
Adjusted EBITDA (1)$62,558 $42,622 $(12,992)$92,188   
       
       
* 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 six months ended June 30, 2023 is as follows:  
       
 International Telecom US Telecom Corporate and Other *Total  
       
Statement of Operations Data:      
Revenue      
Mobility      
Business$7,083 $286 $- $7,369   
Consumer 45,880  1,850  -  47,730   
Total$52,963 $2,136 $- $55,099   
       
Fixed      
Business$34,327 $71,814 $- $106,141   
Consumer 84,236  45,190  -  129,426   
Total$118,563 $117,004 $- $235,567   
       
Carrier Services$7,570 $63,660 $- $71,230   
Other 848  139  -  987   
       
Total Communications Services$179,944 $182,939 $- $362,883   
       
Construction$- $1,610 $- $1,610   
       
Managed services$2,445 $5,276 $- $7,721   
       
Total Other $2,445 $5,276 $- $7,721   
       
Total Revenue$182,389 $189,825 $- $372,214   
       
Depreciation$28,292 $42,917 $1,412 $72,621   
Amortization of intangibles from acquisitions$744 $5,646 $- $6,390   
Total operating expenses$154,012 $196,562 $18,566 $369,140   
Operating income (loss)$28,377 $(6,737)$(18,566)$3,074   
Net (income) loss attributable to non-controlling interests$(3,856)$6,455 $- $2,599   
       
Non GAAP measures:      
EBITDA (2)$57,413 $41,826 $(17,154)$82,085   
Adjusted EBITDA (1)$57,586 $45,583 $(12,581)$90,588   
       
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 June 30, 2024 is as follows: 
      
 International Telecom US Telecom Corporate and Other *Total 
      
      
Operating income (loss)$32,405 $884 $(8,973)$24,316  
Depreciation expense 16,277  19,234  47  35,558  
Amortization of intangibles from acquisitions 252  1,693  -  1,945  
EBITDA$ 48,934 $ 21,811 $ (8,926)$ 61,819  
      
Stock-based compensation 193  196  2,392  2,781  
(Gain) Loss on disposition of assets (15,842) (88) -  (15,930) 
ADJUSTED EBITDA$ 33,285 $ 21,919 $ (6,534)$ 48,670  
      
      
      
For the three months ended June 30, 2023 is as follows: 
      
 International Telecom US Telecom Corporate and Other *Total 
      
      
Operating income (loss)$14,552 $(2,394)$(9,720)$2,438  
Depreciation expense 14,106  21,430  681  36,217  
Amortization of intangibles from acquisitions 364  2,780  -  3,144  
EBITDA$ 29,022 $ 21,816 $ (9,039)$ 41,799  
      
Stock-based compensation 109  9  2,621  2,739  
Restructuring expenses -  370  -  370  
Transaction-related charges -  133  305  438  
(Gain) Loss on disposition of assets (3) 448  -  445  
ADJUSTED EBITDA$ 29,128 $ 22,776 $ (6,113)$ 45,791  
      
    Table 5 (continued)
ATN International, Inc. 
Reconciliation of Non-GAAP Measures 
(In Thousands) 
      
For the six months ended June 30, 2024 is as follows: 
      
 International Telecom US Telecom Corporate and Other *Total 
      
      
Operating income (loss)$44,090 $1,482 $(16,682)$28,890  
Depreciation expense 32,400  37,372  125  69,897  
Amortization of intangibles from acquisitions 503  3,421  -  3,924  
EBITDA$ 76,993 $ 42,275 $ (16,557)$ 102,711  
      
Stock-based compensation 217  327  4,146  4,690  
Restructuring expenses 1,190  -  -  1,190  
Transaction-related charges -  -  19  19  
(Gain) Loss on disposition of assets (15,842) 20  (600) (16,422) 
ADJUSTED EBITDA$ 62,558 $ 42,622 $ (12,992)$ 92,188  
      
      
      
For the six months ended June 30, 2023 is as follows: 
      
 International Telecom US Telecom Corporate and Other *Total 
      
      
Operating income (loss)$28,377 $(6,737)$(18,566)$3,074  
Depreciation expense 28,292  42,917  1,412  72,621  
Amortization of intangibles from acquisitions 744  5,646  -  6,390  
EBITDA$ 57,413 $ 41,826 $ (17,154)$ 82,085  
      
Stock-based compensation 176  86  4,255  4,517  
Restructuring expenses -  3,257  -  3,257  
Transaction-related charges -  133  318  451  
(Gain) Loss on disposition of assets (3) 281  -  278  
ADJUSTED EBITDA$ 57,586 $ 45,583 $ (12,581)$ 90,588  
      


           
        Table 6  
           
 ATN International, Inc.
 Non GAAP Measure - Net Debt Ratio
 (in Thousands)
           
           
      June 30, December 31, 
      20242023  
           
           
 Current portion of long-term debt *    $16,573 $24,290  
 Long-term debt, net of current portion *     524,262  492,580  
           
 Total debt    $540,835 $516,870  
           
 Less: Cash, cash equivalents and restricted cash     73,253  62,167  
           
 Net Debt    $467,582 $454,703  
           
           
 Adjusted EBITDA - for the four quarters ended    $191,050 $189,451  
           
           
 Net Debt Ratio     2.45  2.40  
           
           
 * Excludes Customer receivable credit facility         

 


1 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.
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 EBITDA
3 Please see “Use of Non-GAAP Financial Measures” below for a full definition of Net Debt Ratio.


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