Press Releases

Jul 25, 2018

ATN Reports Second Quarter 2018 Results

-- Sequential Earnings Growth Led By Improved International Telecom Results --
-- Rebuild of U.S. Virgin Islands Network Proceeding Apace --

Second Quarter Financial Highlights:

  • Revenues: $117.8 million
  • Adjusted EBITDA1: $36.0 million
  • Operating income: $15.8 million   
  • Net income attributable to ATN stockholders: $7.2 million, or $0.45 per diluted share
  • Cash flow from operating activities for first six months of 2018 was $44.0 million

BEVERLY, Mass., July 25, 2018 (GLOBE NEWSWIRE) -- ATN (Nasdaq:ATNI) today reported results for the second quarter ended June 30, 2018.

Business Review and Outlook

“Our second quarter operating results showed marked improvement over first quarter levels, benefitting from continued progress in our International Telecom markets, steady performance in our domestic wireless business and an additional advance of FCC USF support,” said Michael Prior, the Company’s Chief Executive Officer.  “We have made great strides this quarter re-connecting customers in the U.S. Virgin Islands, and we continued to see positive EBITDA margin comparisons across our other international markets.    

“Specifically, investments we have made in our international telecom segment to extend and upgrade our broadband network and service offerings in several markets have resulted in positive subscriber growth and continued margin expansion. Additionally, we are pleased to report that substantially all of the network backbone is fully restored in the U.S. Virgin Islands and close to 60% of customer premises in the territory are now re-connected to the new wireline network that we have rebuilt following the devastating impact of Hurricanes Irma and Maria. We expect to substantially complete our restoration efforts by the end of the third quarter, and following the promise of further FCC support, we have expanded and accelerated plans for building additional resiliency and capabilities into the network.

“Our U.S. Telecom business performed in line with our expectations with revenues and EBITDA increasing slightly on a sequential basis, reflecting higher seasonal volumes. As previously noted, we have substantially curtailed capital spending in this area as we assess future growth opportunities.  At the same time, we have launched several initiatives to explore new revenue opportunities in our domestic telecom business that have the potential to provide growth and significant cash flows down the line.

“We are pleased with the second quarter results and expect to see continued positive trends in our international telecom business, supported by stable performance in domestic telecom, in the second half of this year. In addition to the organic initiatives mentioned previously, we have made investments in new platforms and technologies that we believe can develop into significant growth opportunities.  While these activities increase short term operating costs, we are optimistic about their longer term potential,” Mr. Prior noted.  

Second Quarter 2018 Financial Results

Second quarter 2018 revenues were $117.8 million, 4% below the $123.2 million reported for the second quarter of 2017. The sale of our British Virgin Islands business in late 2017 and the destruction of much of our U.S. Virgin Islands wireline network due to the 2017 hurricanes reduced revenue by approximately $11.0 million. Additionally, U.S. wireless revenues declined $6.3 million, as anticipated, due to previously-agreed revenue caps and other contract changes.  These reductions were partially offset by revenue from an additional payment of $8.2 million for USF high cost support funding from the FCC for our U.S. Virgin Islands business, increases in international wireless and broadband revenues and the ramp up of revenue generation from our solar business in India.  Adjusted EBITDA1 for the second quarter of 2018 was $36.0 million, or 6% below the prior year period, primarily because of the noted revenue declines.  Operating income for the second quarter was $15.8 million, flat to the prior year period as the $2.3 million gain on sales of assets in the second quarter of 2018 along with current year operating and depreciation expense decreases offset the impact of the revenue declines.  Net income attributable to ATN’s stockholders for the second quarter was $7.2 million or $0.45 per diluted share, an increase from the prior year period’s net income attributable to ATN stockholders of $5.9 million or $0.36 per diluted share, reflecting a reduction in minority partner income.   

Revenues for the first six months of 2018 were $222.3 million, 12% below the $251.4 million reported for the same period in 2017.  This revenue decline reflects the six-month impact of the revenue changes highlighted in the second quarter comparison.  Correspondingly, Adjusted EBITDA1 for the first six months of 2018 was $62.3 million, a decrease of 22% from the prior year period and operating income for the first six months of 2018 was $20.0 million, a decrease from the prior year period’s $33.6 million.  Net income attributable to ATN stockholders for the first six months of 2018 was $1.7 million or $0.10 per diluted share, compared with the prior year period’s $12.7 million and $0.78 per diluted share.

Second Quarter 2018 Operating Highlights

The Company has three reportable segments: (i) U.S. Telecom; (ii) International Telecom; and (iii) Renewable Energy. 

U.S. Telecom

U.S. Telecom revenues consist mainly of wireless revenues from our voice and data wholesale roaming operations and our smaller retail operations in the Southwestern United States, as well as enterprise and wholesale wireline revenues.  Total U.S. Telecom segment revenues were $30.3 million in the second quarter of 2018, an 18% decrease from the $37.0 million reported in the second quarter of 2017.  U.S. wireless revenues decreased 18% to $28.6 million compared with $34.9 million in the prior year quarter due to the impact of previously agreed upon revenue caps and other wholesale wireless contract changes. The expected sale of a portion of the Company’s wireless network closed early in the third quarter of 2018.

U.S. Telecom Adjusted EBITDA1 of $12.7 million in the second quarter of 2018 decreased 35% compared to the prior year period’s $19.4 million.  The decrease was mostly due to the reduction in wireless revenues, as well as the cost of some earlier stage initiatives.

International Telecom

International Telecom consists of a broad range of information and communications services including wireline and wireless data, internet, voice and video service revenues from our operations in Bermuda and the Caribbean.  International Telecom revenues were $81.5 million in the second quarter of 2018, a 1% increase from the $81.4 million reported in the second quarter of 2017.  As expected, the extensive network damage in the U.S. Virgin Islands resulted in a reduction of approximately $10.0 million in revenue in the quarter compared with the prior year.  However the impact of this decline was lessened by the hurricane relief USF revenue of $8.2 million.  Additionally, revenues were down $1.1 million from last year due to the sale of our British Virgin Islands business in mid-2017.  These reductions were partially offset by an aggregate increase in wireless and broadband revenues. While we expect year-on-year revenue comparisons in the third quarter will continue to be negatively impacted by the storm-related service outages, we expect sequential revenue improvement in the third quarter (excluding the Q2 USF revenue benefit) and segment revenues should begin to more fully recover in the fourth quarter of 2018.  The level of damage to the U.S. Virgin Islands economy and our customer base may mean it is some time before we see a full return to pre-storm levels in that market.  In light of the promise of additional FCC support, we have expanded and accelerated plans to build additional resiliency and capabilities into our USVI network.

International Telecom Adjusted EBITDA1 of $27.6 million in the second quarter increased 16% from $23.9 million in the prior year period.  The increase is primarily the result of the noted additional USF revenue benefit in the U.S. Virgin Islands and in the growth in other markets against a backdrop of improving cost controls.

Renewable Energy

Renewable Energy segment revenues are generated principally by the generation and sale of energy and solar renewable energy credits from our commercial solar projects in the United States and India.  For the second quarter of 2018, revenues from our renewable energy business were $6.0 million, an increase of 23% from $4.9 million in the prior year period due mainly to the commencement of revenue generation from newly completed solar power plants in India.  The growth in India power production revenue also drove an increase in Adjusted EBITDA1 for the Renewable Energy segment to $3.8 million in the second quarter, up $1.2 million from the prior year’s quarter.   

Balance Sheet and Cash Flow Highlights

Total cash at June 30, 2018 was $180.1 million.  Additionally, the Company ended the second quarter with $1.6 million in short-term investments.  Net cash provided by operating activities was $44.0 million for the first six months of 2018, compared with $65.5 million for the prior year period.  The decrease in net cash provided by operating activities is primarily due to the revenue reductions in the U.S.Telecom wireless business and the wireline business in the U.S. Virgin Islands.  During the first six months of 2018, the Company used net cash of $83.6 million for investing and financing activities.  This included $66.7 million of capital expenditures for network repairs and resiliency following the 2017 hurricanes in the U.S. Virgin Islands, partially offset by $34.6 million in storm-related insurance proceeds, $40.6 million in other capital expenditures and $12.8 million in partner distributions.  In addition to the estimated $65 million of network repairs in the U.S. Virgin Islands, an additional $15 million for network resiliency is planned.  We also estimate that other capital expenditures in the telecom segments will be at the high end of our original estimate of between $65 and $80 million, as some of the growth capital expenditures planned for 2019 will be accelerated into 2018 as we see strong customer demand on the fiber network expansions in the International Telecom segment.  

Conference Call Information

ATN will host a conference call on Thursday, July 26, 2018 at 9:30 a.m. Eastern Time (ET) to discuss its second quarter 2018 results. The call will be hosted by Michael Prior, Chairman and Chief Executive Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are US/Canada: (877) 734-4582 and International: (678) 905-9376, conference ID 1846245. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on July 26, 2018.

About ATN

ATN International, Inc. (Nasdaq:ATNI), headquartered in Beverly, Massachusetts, provides telecommunications services to rural, niche and other under-served markets and geographies in the United States, Bermuda and the Caribbean and owns and operates solar power systems in various locations in the United States and India. Through our operating subsidiaries, we (i) provide both wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, high speed internet services, video services and local exchange services, (ii) provide distributed solar electric power to corporate and municipal customers and (iii) are the owner and operator of terrestrial and submarine fiber optic transport systems. For more information, please visit www.atni.com.

Cautionary Language Concerning Forward Looking Statements

This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations; the estimated timeline for the rebuilding of our operations and revenues from our customers in the U.S. Virgin Islands following the hurricanes; our estimates of total losses due to the hurricanes and our estimated costs of restoring hurricane-damaged services; our ability to receive financial support from the government for our rebuild in the U.S. Virgin Islands and the timing of such support; the competitive environment in our key markets, demand for our services and industry trends; the pace of expansion and improvement of our telecommunications network and renewable energy operations including our level of estimated future capital expenditures and our realization of the benefits of these investments; the anticipated timing of our build schedule and energy production of our India renewable energy projects; and management’s plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results.  Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1)  our ability to restore our networks and services to our customers in the U.S. Virgin Islands in an efficient and timely manner and to obtain governmental or other support necessary to fully restore services in the U.S. Virgin Islands; (2) our ability to execute planned network expansions and upgrades in our various markets; (3) the general performance of our operations, including operating margins, revenues, capital expenditures, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power; (4) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables business; (5) economic, political and other risks facing our operations; (6) our ability to maintain favorable roaming arrangements and satisfy the needs and demands of our major wireless customers; (7) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address rapid and significant technological changes in the telecommunications industry; (8) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (9) our ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (10) increased competition; (11) our ability to expand our renewable energy business; (12) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (13) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (14) the occurrence of weather events and natural catastrophes; (15) our continued access to capital and credit markets; (16) the risk of currency fluctuation for those markets in which we operate; and (17) our ability to realize the value that we believe exists in our businesses.  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, 2017, filed with the SEC on March 1, 2018 and the other reports we file from time to time with the SEC.  The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors that may affect such forward-looking statements.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has presented the following measures in this release and in the tables included herein:  Adjusted EBITDA; Operating Income excluding hurricane charges and insurance recoveries; Net income (loss) attributable to ATN’s stockholders excluding hurricane charges and insurance recoveries; and Net income (loss) per share attributable to ATN stockholders excluding hurricane charges and insurance recoveries. 

Adjusted EBITDA is defined as net income attributable to ATN stockholders before bargain purchase gain, impairment of long-lived assets, restructuring charges, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, loss on damaged assets and other hurricane charges, net of insurance recovery and net income attributable to non-controlling interests.  

Operating Income excluding hurricane charges and insurance recoveries is defined as Operating Income (Loss) adjusted for loss on damaged assets and other hurricane related charges, net of insurance recovery.  Net income (loss) attributable to ATN stockholders excluding hurricane charges and insurance recoveries is defined as Net income (loss) attributable to ATN stockholders adjusted for loss on damaged assets and other hurricane related charges net of insurance recovery. 

Net income (loss) per share attributable to ATN stockholders excluding hurricane charges and insurance recoveries is defined as net income (loss) per share attributable to ATN stockholders adjusted for loss on damaged assets and other hurricane related charges, net of insurance recovery. 

The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. ATN’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measure is set forth in the text of, and the accompanying tables to, this press release.  While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.


   
  Table 1
  ATN International, Inc.
  Unaudited Condensed Consolidated Balance Sheets
  (in Thousands)
         
    June 30,   December 31,
  2018 2017
  Assets:      
  Cash and cash equivalents $ 167,107   $ 207,956
  Restricted cash   1,071     833
  Short-term investments   1,595     7,076
  Other current assets   94,540     127,063
         
  Total current assets   264,313     342,928
         
  Long-term restricted cash   11,949     11,101
  Property, plant and equipment, net   702,968     643,146
  Goodwill and other intangible assets, net   170,324     171,656
  Other assets   39,445     36,774
         
  Total assets $ 1,188,999   $ 1,205,605
         
  Liabilities and Stockholders’ Equity:      
  Current portion of long-term debt $ 11,268   $ 10,919
  Taxes payable   10,238     6,751
  Other current liabilities   135,884     144,035
         
  Total current liabilities   157,390     161,705
         
  Long-term debt, net of current portion $ 139,733   $ 144,873
  Deferred income taxes   30,755     31,732
  Other long-term liabilities   41,612     37,072
         
  Total long-term liabilities   212,100     213,677
         
  Total liabilities   369,490     375,382
         
  Total ATN International, Inc.’s stockholders’ equity   683,085     688,727
  Non-controlling interests   136,424     141,496
         
  Total equity   819,509     830,223
         
  Total liabilities and stockholders’ equity $ 1,188,999   $ 1,205,605
         

 

                         
                      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,  
          2018       2017         2018       2017    
  Revenues:                      
  Wireless   $ 50,496     $ 56,546       $ 101,043     $ 115,471    
  Wireline     61,269       61,802         109,365       125,960    
  Renewable energy     6,023       4,897         11,855       9,929    
  Total revenue     117,788       123,245         222,263       251,360    
                       
  Operating expenses:                    
  Termination and access fees     28,257       30,922         54,171       63,924    
  Engineering and operations     18,409       19,378         36,561       39,061    
  Sales, marketing and customer service     8,413       8,729         16,974       17,765    
  General and administrative     26,754       26,011         52,296       50,370    
  Transaction-related charges     438       148         465       826    
  Depreciation and amortization       21,913       22,254         43,217       44,747    
  (Gain) Loss on disposition of long-lived assets       (2,333 )     -         (2,049 )     1,111    
  Loss on damaged assets and other hurricane related                      
  charges, net of insurance recovery     184       -         666       -    
  Total operating expenses     102,035       107,442         202,301       217,804    
                       
  Operating income     15,753       15,803         19,962       33,556    
                       
  Other income (expense):                    
  Interest expense, net     (1,840 )     (1,806 )       (3,679 )     (3,836 )  
  Loss on deconsolidation of subsidiary     -       -         -       (529 )  
  Other income (expense)     (1,045 )     (492 )       (1,798 )     (973 )  
  Other expense, net     (2,885 )     (2,298 )       (5,477 )     (5,338 )  
                       
  Income before income taxes     12,868       13,505         14,485       28,218    
  Income tax expense     2,088       2,596         6,008       5,724    
                       
  Net Income     10,780       10,909         8,477       22,494    
                         
  Net income attributable to non-controlling interests, net     (3,564 )     (5,026 )       (6,816 )     (9,751 )  
                         
  Net Income attributable to ATN International, Inc. stockholders   $ 7,216     $ 5,883       $ 1,661     $ 12,743    
                       
  Net income per weighted average share attributable to ATN International, Inc. stockholders:                      
                         
  Basic Net Income     $ 0.45     $ 0.36       $ 0.10     $ 0.79    
                       
  Diluted Net Income   $ 0.45     $ 0.36       $ 0.10     $ 0.78    
                       
  Weighted average common shares outstanding:                    
  Basic       15,962       16,195         15,996       16,176    
  Diluted       16,010       16,274         16,047       16,263    
                         

 

     
  Table 3  
  ATN International, Inc.  
  Unaudited Condensed Consolidated Cash Flow Statement  
  (in Thousands)  
       
    Six Months Ended June 30,  
      2018       2017    
           
  Net income $ 8,477     $ 22,494    
  Depreciation and amortization   43,217       44,747    
  (Gain) Loss on disposition of long-lived assets   (2,042 )     1,111    
  Loss on deconsolidation of subsidiary   -       529    
  Stock-based compensation   3,679       3,786    
  Loss in equity method investments   -       2,033    
  Deferred income taxes   (1,279 )     2,379    
  Change in prepaid and accrued income taxes   1,249       (6,881 )  
  Change in other operating assets and liabilities   (13,151 )     (6,370 )  
  Other non-cash activity   3,885       1,639    
           
  Net cash provided by operating activities   44,035       65,467    
           
  Capital expenditures   (40,594 )     (78,559 )  
  Hurricane rebuild capital expenditures   (66,654 )     -    
  Hurricane insurance proceeds   34,606       -    
  Sale of business, net of transferred cash of $0 and $2.1 million   926       22,597    
  Purchases of spectrum licenses and other intangible assets, including deposits   -       (36,832 )  
  Net proceeds from sale of assets   4,130       -    
  Proceeds from sale of investments   5,348       2,761    
  Government grants   5,400       -    
           
           
  Net cash used in investing activities   (56,838 )     (90,033 )  
           
  Dividends paid on common stock   (5,441 )     (10,992 )  
  Distributions to non-controlling interests   (12,836 )     (3,373 )  
  Principal repayments of term loan   (4,786 )     (5,447 )  
  Proceeds from new borrowings   -       8,571    
  Purchases of common stock   (3,660 )     (2,186 )  
  Acquisition of business, net of acquired cash of $0   -       (1,178 )  
  Repurchases of non-controlling interests   (61 )     (953 )  
  Investments made by minority shareholders in consolidated affiliates   -       122    
  Other   -       (52 )  
           
  Net cash used in financing activities   (26,784 )     (15,488 )  
           
  Effect of foreign currency exchange rates on total cash   (178 )     207    
           
  Net change in total cash   (39,765 )     (39,847 )  
           
  Total cash, beginning of period   219,890       288,358    
           
  Total cash, end of period $ 180,125     $ 248,511    
           

 

            Table 4  
  ATN International, Inc.  
  Selected Segment Financial Information  
  (In Thousands)  
               
  For the three months ended June 30, 2018 is as follows:  
               
    U.S.
Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
 *
Total  
               
  Statement of Operations Data:            
  Revenue            
  Wireless $ 28,582   $ 21,914   $ -   $ -   $ 50,496    
  Wireline   1,702     59,567     -     -     61,269    
  Renewable Energy   -     -     6,023     -     6,023    
  Total Revenue $ 30,284   $ 81,481   $ 6,023   $ -   $ 117,788    
               
  Operating Income (Loss) $ 7,841   $ 15,571   $ 1,927   $ (9,586 ) $ 15,753    
  Non-controlling interest ( net income or (loss) ) $ (786 ) $ (2,567 ) $ (211 ) $ -   $ (3,564 )  
               
  Non GAAP measure:            
  Adjusted EBITDA $ 12,685   $ 27,617   $ 3,826   $ (8,173 ) $ 35,955    
               
  Balance Sheet Data (at June 30, 2018):            
  Cash, cash equivalents and investments $ 16,241   $ 49,882   $ 12,403   $ 90,176   $ 168,702    
  Total current assets   43,413     97,603     18,077     105,220     264,313    
  Fixed assets, net   92,435     442,854     150,022     17,657     702,968    
  Total assets   195,587     611,654     184,255     197,503     1,188,999    
  Total current liabilities   44,618     79,484     12,378     20,910     157,390    
  Total debt   -     92,774     58,227     -     151,001    
               
 

ATN International, Inc.
 
  Selected Segment Financial Information  
  (In Thousands)  
               
  For the three months ended June 30, 2017 is as follows:  
               
    U.S.
Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
 *
Total  
               
  Statement of Operations Data:            
  Revenue            
  Wireless $ 34,921   $ 21,625   $ -   $ -   $ 56,546    
  Wireline   2,057     59,745     -     -     61,802    
  Renewable Energy   -     -     4,897     -     4,897    
  Total Revenue $ 36,978   $ 81,370   $ 4,897   $ -   $ 123,245    
               
  Operating Income (Loss) $ 13,147   $ 10,765   $ 846   $ (8,955 ) $ 15,803    
  Non-controlling interest ( net income or (loss) ) $ (1,756 ) $ (3,024 ) $ (246 ) $ -   $ (5,026 )  
               
  Non GAAP measure:            
  Adjusted EBITDA $ 19,393   $ 23,899   $ 2,676   $ (7,763 ) $ 38,205    
               
  * 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, 2018 is as follows:  
               
    U.S.
Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
 *
Total  
               
  Statement of Operations Data:            
  Revenue            
  Wireless $ 55,983   $ 45,060   $ -   $ -   $ 101,043    
  Wireline   2,800     106,565     -     -     109,365    
  Renewable Energy   -     -     11,855     -     11,855    
  Total Revenue $ 58,783   $ 151,625   $ 11,855   $ -   $ 222,263    
               
  Operating Income (Loss) $ 13,065   $ 21,211   $ 3,863   $ (18,177 ) $ 19,962    
  Non-controlling interest ( net income or (loss) ) $ (1,469 ) $ (4,836 ) $ (511 ) $ -   $ (6,816 )  
               
  Non GAAP measure:            
  Adjusted EBITDA $ 24,677   $ 45,410   $ 7,565   $ (15,391 ) $ 62,261    
               
  Statement of Cash Flow Data:            
  Capital expenditures $ 7,266   $ 95,520   $ 1,388   $ 3,074   $ 107,248    
               
 

ATN International, Inc.
 
  Selected Segment Financial Information  
  (In Thousands)  
               
  For the six months ended June 30, 2017 is as follows:  
               
    U.S.
Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
 *
Total  
               
  Statement of Operations Data:            
  Revenue            
  Wireless $ 72,623   $ 42,848   $ -   $ -   $ 115,471    
  Wireline   8,148     117,812     -     -     125,960    
  Renewable Energy   -     -     9,929     -     9,929    
  Total Revenue $ 80,771   $ 160,660   $ 9,929   $ -   $ 251,360    
               
  Operating Income (Loss) $ 28,533   $ 20,691   $ 2,287   $ (17,955 ) $ 33,556    
  Non-controlling interest ( net income or (loss) ) $ (4,153 ) $ (5,033 ) $ (565 ) $ -   $ (9,751 )  
               
  Non GAAP measure:            
  Adjusted EBITDA $ 42,561   $ 46,821   $ 5,571   $ (14,713 ) $ 80,240    
               
  Statement of Cash Flow Data:            
  Capital expenditures $ 12,602   $ 37,129   $ 25,535   $ 3,293   $ 78,559    
               
  * Corporate and Other refer to corporate overhead expenses and consolidating adjustments      
         
 

ATN International, Inc.
 
  Selected Segment Financial Information  
  (In Thousands)  
               
  For the year ended December 31, 2017 is as follows:  
               
    U.S.
Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
 *
Total  
               
               
  Balance Sheet Data (at December 31, 2017):            
  Cash, cash equivalents and investments $ 19,585   $ 110,700   $ 8,120   $ 76,627   $ 215,032    
  Total current assets   40,975     190,396     18,060     93,497     342,928    
  Fixed assets, net   99,462     367,485     158,447     17,752     643,146    
  Total assets   200,142     629,007     192,406     184,050     1,205,605    
  Total current liabilities   41,248     91,887     14,754     13,816     161,705    
  Total debt   -     94,577     61,215     -     155,792    
               
  * Corporate and Other refer to corporate overhead expenses and consolidating adjustments      
               
 

ATN International, Inc.
 
  Selected Segment Operational Data  
               
    Quarter ended  
    June 30, September 30, December 31, March 31, June 30,  
    2017 * 2017 *   2017     2018     2018    
               
  U.S. Telecom Operational Data:            
  Wireless - Total Domestic Base Stations   1,041     1,061     1,100     1,122     1,121    
               
               
  International Telecom Operational Data:            
  Wireline - Voice / Access lines   174,600     172,300     171,200     169,500     168,700    
  Wireline - Data Subscribers   101,700     102,400     104,900     105,900     110,200    
  Wireline - Video Subscribers   47,200     46,700     45,700     44,500     43,400    
  Wireless - Subscribers   302,900     302,000     307,200     310,800     308,100    
               
  * Adjusted subscriber counts for the sales of St Maarten and British Virgin Islands, and the transfer of ownership of Aruba business  
               

 

            Table 5  
  ATN International, Inc.  
  Reconciliation of Non-GAAP Measures  
  (In Thousands)  
               
  Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended June 30, 2018 and 2017  
               
  Three Months Ended June 30, 2018  
    U.S.
Telecom 
  Renewable
Energy
Corporate and
Other *
Total  
  International
Telecom
 
               
  Net income attributable to ATN International, Inc. stockholders         $ 7,216    
  Net income attributable to non-controlling interests, net of tax           3,564    
  Income tax expense           2,088    
  Other (income) expense, net           1,045    
  Interest expense, net           1,840    
  Operating income $ 7,841   $ 15,571   $ 1,927 $ (9,586 ) $ 15,753    
  Depreciation and amortization   6,835     11,794     1,899   1,385     21,913    
  (Gain) Loss on disposition of long-lived assets   (2,401 )   68     -   -     (2,333 )  
  Loss on damaged assets and other hurricane related charges, net of insurance recovery   -     184     -   -     184    
  Transaction-related charges   410     -     -   28     438    
  Adjusted EBITDA $ 12,685   $ 27,617   $ 3,826 $ (8,173 ) $ 35,955    
               
               
  Three Months Ended June 30, 2017  
    U.S.
Telecom 
  Renewable
Energy
Corporate and
Other *
Total  
  International
Telecom
 
               
  Net Income attributable to ATN International, Inc. stockholders         $ 5,883    
  Net income attributable to non-controlling interests, net of tax           5,026    
  Income tax expense           2,596    
  Other (income) expense, net           492    
  Interest expense, net           1,806    
  Operating income $ 13,147   $ 10,765   $ 846 $ (8,955 ) $ 15,803    
  Depreciation and amortization   6,246     13,134     1,830   1,044     22,254    
  Transaction-related charges   -     -     -   148     148    
  Adjusted EBITDA $ 19,393   $ 23,899   $ 2,676 $ (7,763 ) $ 38,205    
               
               
  * Corporate and Other refer to corporate overhead expenses and consolidating adjustments      
               
  Reconciliation of Net Income to Adjusted EBITDA for the Six Months Ended June 30, 2018 and 2017  
               
  Six Months Ended June 30, 2018  
    U.S.
Telecom 
  Renewable
Energy
Corporate and
Other *
Total  
  International
Telecom
 
               
  Net income attributable to ATN International, Inc. stockholders         $ 1,661    
  Net income attributable to non-controlling interests, net of tax           6,816    
  Income tax expense           6,008    
  Other (income) expense, net           1,798    
  Interest expense, net           3,679    
  Operating income $ 13,065   $ 21,211   $ 3,863 $ (18,177 ) $ 19,962    
  Depreciation and amortization   13,348     23,465     3,673   2,731     43,217    
  (Gain) Loss on disposition of long-lived assets   (2,146 )   68     29   -     (2,049 )  
  Loss on damaged assets and other hurricane related charges, net of insurance recovery   -     666     -   -     666    
  Transaction-related charges   410     -     -   55     465    
  Adjusted EBITDA $ 24,677   $ 45,410   $ 7,565 $ (15,391 ) $ 62,261    
               
               
  Six Months Ended June 30, 2017  
    U.S.
Telecom 
  Renewable
Energy
Corporate and
Other *
Total  
  International
Telecom
 
               
  Net Income attributable to ATN International, Inc. stockholders         $ 12,743    
  Net income attributable to non-controlling interests, net of tax           9,751    
  Income tax expense           5,724    
  Other (income) expense, net           973    
  Loss on deconsolidation of subsidiary           529    
  Interest expense, net           3,836    
  Operating income $ 28,533   $ 20,691   $ 2,287 $ (17,955 ) $ 33,556    
  Depreciation and amortization   12,797     26,250     3,284   2,416     44,747    
  Loss on disposition of long-lived assets   1,231     (120 )   -   -     1,111    
  Transaction-related charges   -     -     -   826     826    
  Adjusted EBITDA $ 42,561   $ 46,821   $ 5,571 $ (14,713 ) $ 80,240    
               
               
  * Corporate and Other refer to corporate overhead expenses and consolidating adjustments      
         

 

   
        Table 6
  ATN International, Inc.
  (In Thousands)
  Reconciliation of GAAP measures to Non-GAAP measures
         
  Reconciliation of Operating Income (Loss) to Operating Income excluding hurricane charges and insurance recoveries, Net Income (Loss) attributable to ATN stockholders to Net Income (Loss) attributable to ATN stockholders excluding hurricane charges and insurance recoveries and Net Income (Loss) per share attributable to ATN stockholders to Net Income (Loss) per share attributable to ATN stockholders excluding hurricane charges and insurance recoveries
         
  For the Three Months Ended June 30, 2018 is as follows:
         
    Operating Income (Loss) Net Income (Loss)
Attributable to ATN
Stockholders
Net Income (Loss) per
share Attributable to ATN
Stockholders
         
  GAAP - As reported $ 15,753 $ 7,216 $ 0.45
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   184   184   0.01
  Tax effect   -   -   -
  Non-GAAP $ 15,937 $ 7,400 $ 0.46
     
         
  For the Three Months Ended June 30, 2017 is as follows:
         
    Operating Income (Loss) Net Income (Loss)
Attributable to ATN
Stockholders
Net Income (Loss) per
share Attributable to ATN
Stockholders
         
  GAAP - As reported $ 15,803 $ 5,883 $ 0.36
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   -   -   -
  Tax effect   -   -   -
  Non-GAAP $ 15,803 $ 5,883 $ 0.36
 
  For the Six Months Ended June 30, 2018 is as follows:
         
    Operating Income (Loss) Net Income (Loss)
Attributable to ATN
Stockholders
Net Income (Loss) per
share Attributable to ATN
Stockholders
         
  GAAP - As reported $ 19,962 $ 1,661 $ 0.10
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   666   666   0.04
  Tax effect   -   -   -
  Non-GAAP $ 20,628 $ 2,327 $ 0.14
         
  For the Six Months Ended June 30, 2017 is as follows:
         
    Operating Income (Loss) Net Income (Loss)
Attributable to ATN Stockholders
Net Income (Loss) per
share Attributable to ATN Stockholders
         
  GAAP - As reported $ 33,556 $ 12,743 $ 0.78
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   -   -   -
  Tax effect   -   -   -
  Non-GAAP $ 33,556 $ 12,743 $ 0.78
 

_______________________

1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.

CONTACT:
978-619-1300
Michael T. Prior
Chief Executive Officer

Justin D. Benincasa
Chief Financial Officer

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Source: ATN International, Inc.