ATN International, Inc.
Feb 24, 2016

ATN Reports Fourth Quarter and Full Year 2015 Results

Fourth Quarter and Full Year 2015 Financial Highlights:


BEVERLY, Mass., Feb. 24, 2016 (GLOBE NEWSWIRE) -- ATN (NASDAQ:ATNI), today reported results for the fourth quarter and year ended December 31, 2015. Unless otherwise indicated, the discussion of the Company's results is focused on its continuing operations, and comparisons are to the same period in the prior year.   

Fourth Quarter 2015 and Full Year 2015 Financial Results and Business Review

"Fourth quarter and full year 2015 performance reflected the key trends we have discussed over the past several quarters," said Michael Prior, Chief Executive Officer. "Most notably, fourth quarter results from our U.S. wireless business were affected by the reduced rates we negotiated with our carrier customers in exchange for extended terms and other strategic considerations, with the ultimate objective of transitioning to a long-term outsourced network model.  We had projected that the greatest impact on revenues and profitability would occur in this seasonally slower period, when volume thresholds would reduce data rates to their lowest level of the year. Higher data traffic across our expanded network and the continued growth in our rural retail wireless business partially mitigated the effect of these lower rates on revenue, but in the aggregate did not improve margins.

"The sale of our Turks and Caicos business in early 2015 negatively impacted international wireless revenue comparisons, but positively affected EBITDA comparisons.  In addition, we continued to focus on margin improvement in our USVI operations and to invest in our Guyana operations including rebranding, opening new retail stores and making several operational and business support system enhancements.

 "Full year 2015 results demonstrated solid execution across several of our strategic objectives," Mr. Prior continued.  "We successfully implemented plans to secure the long term value of our domestic wholesale wireless business by providing cost efficient rate plans to our larger carrier customers in exchange for extended term contracts that provide us greater visibility on projected cash flows as well as other strategic benefits to enhance the business and the value of our relationships.  We took action to optimize our international wireless portfolio by divesting an unprofitable operation and investing to improve the performance in another; and we put a portion of our significant balance sheet capacity to work as we executed agreements to acquire businesses that we believe will be quickly accretive and will significantly enhance our competitive position in two of our markets," concluded Mr. Prior.

Fourth quarter 2015 revenues were $82.9 million, 6% below the $88.5 million reported for the fourth quarter of 2014.  The decline resulted from a reduction in U.S. wireless revenues and a reduction of international wireless revenues due to the sale of our Turks and Caicos business, partially offset by incremental revenues from the Company's renewable energy business, acquired in late 2014.

Adjusted EBITDA1 for the fourth quarter was $25.6 million, a 28% decrease over the $35.7 million reported for the 2014 fourth quarter.  Fourth quarter Adjusted EBITDA1 results in the U.S. Wireless business reflected lower revenues along with increased operating expenses related to expanded network coverage and the cost to maintain multiple technologies utilized to support the rapid growth in data traffic volume.   

Operating income for the fourth quarter was $8.2 million, down 58% compared to last year's $19.6 million in the same period mostly due to the reduction in U.S. Wireless revenue and the increased cost of expanded network coverage, and increased transaction-related charges of $4.3 million, which were largely related to our evaluation of renewable energy investment opportunities.  Operating income comparisons were favorably impacted by the addition of the renewable energy business and the sale of the Turks and Caicos business in 2015.   

Net income attributable to ATN's stockholders for the fourth quarter was $4.2 million or $0.26 per diluted share, a decrease from the $12.6 million or $0.79 per diluted share reported in last year's fourth quarter.

Full year revenues were $355.4 million, 6% above the $336.3 million reported for the full year 2014.  Adjusted EBITDA1 was $139.8 million for both the full year of 2015 and 2014.  Operating income was $78.6 million, down 8% compared to last year's $85.6 million.  Full year net income attributable to ATN's stockholders was $16.9 million or $1.05 per diluted share compared with $48.2 million or $3.01 per diluted share in the prior year.  Net income attributable to ATN's stockholders for the full year 2015 included a $19.9 million loss related to the deconsolidation of the non-controlling interest from the sale of our holdings in Turks and Caicos.  Excluding this one-time loss on deconsolidation, net income attributable to ATN's stockholders2 was $36.9 million, or $2.29 per diluted share.

Acquisition Update

In October 2015, ATN announced it had entered into an agreement to acquire a controlling interest in KeyTech Bermuda, a provider of data, video and voice services in Bermuda and the Cayman Islands. The transaction is currently awaiting regulatory approval and is expected to close by the end of the first quarter of 2016. The KeyTech transaction is expected to contribute incremental annual revenues of $80 - $90 million for the first year of operations.

Also in October 2015, ATN announced the entry into an agreement to acquire the Innovative group of companies, operators of cable TV, internet and landline telecom services primarily in the U.S. Virgin Islands. When combined together with its existing Choice subsidiary, the combined company is expected to have aggregate annual revenues of $110 million and EBITDA margins between 20% and 25% for the first year of operations, exclusive of one-time integration and transaction expenses. While the waiting period for the Hart-Scott Rodino Act has expired, we are currently awaiting other regulatory approvals and the transaction is expected to close by mid-2016.

 "Looking ahead," Mr. Prior noted, "we expect 2016 to be a pivotal year for the Company, as we continue to transition the domestic wireless business, complete and consolidate the pending telecom acquisitions, and explore additional growth opportunities, including in the distributed generation solar sector. For full year 2016, we expect U.S. wireless business revenues of $140 million to $150 million and an EBITDA margin of 50% to 55% for this business, with lower year-on-year comparisons beginning in the second quarter of the year. This reflects the projected decline in data usage rates partially offset by volume gains, but does not contemplate any significant expansion in our network coverage. Overall, consolidated results for 2016 are expected to benefit from the pending acquisitions and potential improvements in our international wireless business, and our continued strong cash flow in 2015 added to our already substantial balance sheet capacity, even after taking into consideration the over $100 million we invested into the renewables sector a little more than a year ago.  Further," Mr. Prior concluded, "we believe that we have significant resources to invest beyond the capital required to fund the anticipated close of the pending transactions, and that our growth trajectory in 2016 and beyond will be based largely on identifying and capitalizing on new investment opportunities."

Fourth Quarter 2015 Operating Highlights

U.S. Wireless

U.S. wireless revenues consist of voice and data revenues from the Company's wholesale roaming operations and the Company's smaller retail operations.  Total U.S. wireless revenues were $32.4 million in the fourth quarter of 2015, a decrease of 24% from the $42.9 million reported in the fourth quarter of 2014.  This decrease was the result of significantly reduced wholesale rates offsetting data traffic growth, network expansions and retail revenue growth. The decline in wholesale rates is partly due to traffic volumes achieving certain annual contractual pricing tier reductions in the fourth quarter, which will reset in the first quarter of 2016, and also rate decreases that started at the beginning of 2015.  Wholesale data revenues accounted for 59% of U.S. wireless revenues in the 2015 fourth quarter and 71% in the 2014 fourth quarter, as wholesale price decreases and retail revenue growth outpaced the growth in wholesale traffic volume.  The Company ended the fourth quarter of 2015 with 812 domestic base stations in service compared to 764 at the end of last year's fourth quarter.

International Wireless

International wireless revenues include retail and wholesale voice and data wireless revenues from operations in Bermuda and the Caribbean. International wireless revenues were $19.9 million, a decrease of 8% from the $21.5 million reported in the fourth quarter of 2014, mostly as a result of the sale of our Turks and Caicos operations in the first quarter of 2015.

Wireline  

Wireline revenues are generated by the Company's wireline operations in Guyana, integrated voice and data and wholesale transport operations in New England and New York State, and domestic and international wholesale and retail long-distance voice services.  Wireline revenues were $22.0 million, up 5% from $20.9 million in the fourth quarter of 2014, resulting mainly from increases in residential and business data revenues in Guyana.  

Renewable Energy

Renewable energy revenues are generated principally by the sale of energy and solar renewable energy credits from our 28 commercial solar projects.  For the fourth quarter of 2015, revenues from our renewable energy business were $5.4 million, consistent with the first three quarters of 2015.

Reportable Operating Segments

The Company has five reportable segments: (i) U.S. Wireless; (ii) International Integrated Telephony, which operates in Guyana; (iii) Island Wireless, which generates its revenues and has its assets located in Bermuda and the Caribbean (iv) U.S. Wireline; and (v) Renewable Energy, which provides distributed generation solar power to corporate, utility and municipal customers in the United States.  Beginning in the first quarter of 2016, the Company plans to consolidate into three reportable segments: (i) U.S. Telecom; (ii) International Telecom; and (iii) Renewable Energy, consistent with how management began to view the structuring and managing of business operations in 2016.  Financial data on our reportable operating segments for the three months ended December 31, 2015 and 2014 are as follows (in thousands):

For the three months ended December 31, 2015:

 U.S. Wireless International
Integrated
Telephony
 Island Wireless U.S. Wireline Renewable
Energy
 Reconciling
Items
 Total
        
Total Revenue$  33,071 $  22,892 $  15,311 $  6,233 $  5,409 $- $  82,916 
Adjusted EBITDA   15,626    7,414    4,513    84    3,800    (5,849)   25,588 
Operating Income
(Loss)
   11,197    4,193    2,561    (852)   (1,317)   (7,601)   8,181 

For the three months ended December 31, 2014:

 U.S. Wireless International
Integrated
Telephony
 Island Wireless U.S. Wireline Renewable
Energy
 Reconciling
Items
 Total
        
Total Revenue$  43,319 $  21,906 $  16,720 $  6,117 $  449 $- $  88,511 
Adjusted EBITDA   29,295    8,631    3,698    49    384    (6,395)   35,662 
Operating Income
(Loss)
   25,362    4,334    837    (1,157)   (2,218)   (7,596)   19,562 

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents at December 31, 2015 were $392.0 million.  In addition, the Company held $6.3 million of restricted cash primarily related to our renewable energy business.  Net cash provided by operating activities was $139.2 million for the full year 2015, compared with net cash provided by operating activities of $78.0 million for the full year 2014.  The increase was due to significant prior year cash income tax payments associated with the sale of a business and other current year changes in working capital.  Capital expenditures were $64.8 million for the full year 2015, and the Company expects full year 2016 capital expenditures to be mostly for the telecom businesses and to be in the range of $60.0 million to $70.0 million, not including any pending acquisitions.

Conference Call Information

ATN will host a conference call on Thursday, February 25, 2016 at 10:00 a.m. Eastern Time (ET) to discuss its 2015 fourth quarter and 2015 year-end results. The call will be hosted by Michael Prior, President 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 50571141. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on Thursday, February 25, 2016.

  
About ATN

ATN (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 select locations in the United States. Through our operating subsidiaries, we (i) provide both wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, local exchange services and broadband internet services, (ii) provide distributed solar electric power to corporate, utility 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 competitive environment in our key markets, demand for our services and industry trends; the outcome of regulatory matters; the pace of our network expansion and improvement, including our level of estimated future capital expenditures and our realization of the benefits of these investments; and management's plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results.  Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1)  the general performance of our operations, including operating margins, revenues, and the future growth and retention of our subscriber base and consumer demand for solar power; (2) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables business; (3) economic, political and other risks facing our operations; (4) our ability to maintain favorable roaming arrangements; (5) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (6) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (7) our ability to find investment or acquisition or disposition opportunities that fit our strategic goals for the Company; (8) increased competition; (9) our ability to operate in the renewable energy industry; (10) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (11) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (12) the occurrence of weather events and natural catastrophes; (13) our continued access to capital and credit markets; (14) our ability to realize the value that we believe exists in our businesses; and (15) our ability to receive requisite regulatory consents and approvals and satisfy other conditions needed to complete our proposed acquisitions. 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, 2014, filed with the SEC on March 16, 2015 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 news release also contains non-GAAP financial measures. Specifically, ATN has presented an Adjusted EBITDA measure and a net income measure exclusive of the results of loss on the deconsolidation of subsidiaries. Adjusted EBITDA is defined as net income attributable to ATN stockholders before income from discontinued operations, gain on disposal of discontinued operations, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, and net income attributable to non-controlling interests. Net income attributable to ATN stockholders excluding loss on deconsolidation of subsidiary and the related earnings per diluted share is defined as net income attributable to ATN stockholders less the loss and tax impact of the deconsolidation of the subsidiary.  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 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 news 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 news release to the most directly comparable GAAP financial measure is set forth in the text of, and the accompanying tables to, this press release.

1 See Table 4 for reconciliation of Net Income to Adjusted EBITDA.

2 See Table 5 for reconciliation of Net Income Attributable to ATN Stockholders to Net Income Attributable to ATN Stockholders Excluding Loss on Deconsolidation.


Table 1
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
    
 December 31, December 31,
 2015  2014 
Assets:   
Cash and cash equivalents$  392,045  $  326,216 
Restricted cash   824     39,703 
Assets of discontinued operations -     175 
Other current assets   75,623      85,280 
    
Total current assets   468,492     451,374 
    
Long-term restricted cash   5,477     5,475 
Property, plant and equipment, net    373,503     369,582 
Goodwill and other intangible assets, net   90,043     91,080 
Other assets   7,489     7,519 
    
Total assets$  945,004  $  925,030 
    
Liabilities and Stockholders' Equity:   
Current portion of long-term debt$  6,284  $  6,083 
Taxes payable   9,181      5,667 
Liabilities of discontinued operations -     1,247 
Other current liabilities   68,890     91,072 
    
Total current liabilities   84,355     104,069 
    
Long-term debt, net of current portion   26,575     32,794 
Deferred income taxes   45,406      30,366 
Other liabilities   26,944     19,619 
    
Total liabilities   183,280     186,848 
    
Total Atlantic Tele-Network, Inc.'s stockholders' equity   680,299     677,222 
Non-controlling interests   81,425     60,960 
    
Total equity   761,724     738,182 
    
Total liabilities and stockholders' equity$  945,004  $  925,030 

    

 






Table 2
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
     
  Three Months Ended Year Ended
 December 31, December 31,
   2015   2014   2015   2014 
Revenues:        
U.S. wireless$  32,397  $  42,887  $  155,390  $  153,040 
International wireless   19,866     21,522     81,652     88,650 
Wireline   21,988     20,941     86,485     85,284 
Renewable energy    5,409   -   21,040   - 
Equipment and other   3,256     3,161     10,802     9,373 
Total revenue   82,916     88,511     355,369     336,347 
        
Operating expenses:       
Termination and access fees   20,727     19,233     81,928     77,888 
Engineering and operations   10,460     9,094      37,244     30,954 
Sales, marketing and customer service   5,680     5,723     21,466     21,664 
Equipment expense   4,905     4,400     14,997     13,338 
General and administrative   15,556     14,399     59,890     52,734 
Transaction-related charges   4,330     2,618     7,182     2,959 
Depreciation and amortization    13,077     13,482     56,890     51,234 
Gain on disposal of long-lived assets -   -   (2,823)  - 
Total operating expenses   74,735     68,949     276,774      250,771 
        
Operating income   8,181     19,562     78,595     85,576 
        
Other income (expense):       
Interest income (expense), net   (439)    (200)    (2,592)     (420)
Loss on deconsolidation of subsidiary  -   -   (19,937)  - 
Other income (expense)   21     710     135     1,012 
Other income (expense), net   (418)    510     (22,394)    592 
        
Income from continuing operations before income taxes   7,763     20,072     56,201     86,168 
Income tax expense (benefit)   1,482     5,688     24,137     28,148 
        
Income from continuing operations   6,281     14,384     32,064     58,020 
         
Gain on disposal of discontinued operations, net of tax   702     1,102     1,092     1,102 
         
Net income    6,983     15,486     33,156     59,122 
         
Net income attributable to non-controlling interests, net of tax:       
Continuing operations    (2,799)    (2,854)    (16,216)     (10,970)
Net income attributable to non-controlling interests, net   (2,799)    (2,854)    (16,216)    (10,970)
         
Net income attributable to Atlantic Tele-Network, Inc. stockholders$  4,184  $   12,632  $  16,940  $  48,152 
        
Basic net income per weighted average share attributable to Atlantic Tele-Network, Inc. stockholders:       
Income from continuing operations$  0.22  $  0.72  $  0.99  $  2.96 
Gain on disposal of discontinued operations   0.04     0.07      0.07     0.07 
Net income $  0.26  $  0.79  $  1.06  $  3.03 
         
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc. stockholders:       
Income from continuing operations$  0.22  $  0.72  $  0.98  $  2.94 
Gain on disposal of discontinued operations   0.04     0.07     0.07     0.07 
Net income $  0.26  $  0.79  $  1.05  $  3.01 
         
Weighted average common shares outstanding:       
Basic   16,061     15,923     16,022     15,898 
Diluted   16,179     16,049     16,142     16,014 

      


 




Table 3
ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
  
 Year ended December 31,
  2015   2014 
    
Net income$  33,156  $  59,122 
Gain on sale of discontinued operations   (1,092)    (1,102)
Depreciation and amortization   56,890     51,234 
Stock-based compensation   4,975     4,323 
Loss on deconsolidation of subsidiary   19,937   - 
Gain on disposal of long-lived assets   (2,823)  - 
Change in prepaid and accrued income taxes   9,478     (18,270)
Change in other operating assets and liabilities   (1,230)    (14,285)
Other non-cash activity   19,789     1,677 
    
Net cash provided by operating activities of continuing operations   139,080     82,699 
Net cash provided by (used in) operating activities of discontinued operations   158     (4,719)
Net cash provided by operating activities   139,238     77,980 
    
Capital expenditures   (64,753)    (58,300)
Acquisition of business net of operating cash acquired of $6,571   (11,968)     (50,361)
Change in restricted cash   38,877     38,707 
Restricted cash from acquisition of business -     (5,884)
Proceeds from disposition of long-lived assets   5,873     1,371 
    
Net cash used in investing activities   (31,971)    (74,467)
    
Principal repayments of term loans   (6,017)    -  
Dividends paid on common stock   (19,070)    (17,488)
Distributions to non-controlling interests   (16,514)    (16,331)
Other   163     (85)
    
Net cash used in financing activities   (41,438)    (33,904)
    
    
Net change in cash and cash equivalents   65,829     (30,391)
    
Cash and cash equivalents, beginning of period   326,216     356,607 
    
Cash and cash equivalents, end of period$  392,045  $  326,216 

     

 





       Table 4
ATLANTIC TELE-NETWORK, INC.
Reconciliation of Non-GAAP Measures
(In Thousands)
        
        
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended December 31, 2014 and 2015
        
Three Months Ended December 31, 2014
 U.S Wireless         Total
 International
Integrated
Telephony
 Island
Wireless
 U.S. Wireline Renewable
Energy
 Reconciling
Items
 
        
Net income attributable to Atlantic Tele-Network, Inc. stockholders      $  12,632 
Net income attributable to non-controlling interests, net of tax         2,854 
Gain on disposal of discontinued operations, net of tax         (1,102)
Income tax benefit         5,688 
Other expense         (710)
Interest expense, net         200 
Operating income (loss)$  25,362 $  4,334 $  837 $  (1,157)$  (2,218)$  (7,596)$  19,562 
Depreciation and amortization   3,933    4,297    2,861    1,206 $  105    1,080    13,482 
Transaction-related charges -  -  -  - $  2,497    121    2,618 
Adjusted EBITDA$  29,295 $  8,631 $  3,698 $  49 $  384 $  (6,395)$  35,662 
        
Three Months Ended December  31, 2015
 U.S Wireless         Total
 International
Integrated
Telephony
 Island
Wireless
 U.S. Wireline Renewable
Energy
 Reconciling
Items
 
        
Net income attributable to Atlantic Tele-Network, Inc. stockholders      $  4,184 
Net income attributable to non-controlling interests, net of tax         2,799 
Gain on disposal of discontinued operations, net of tax         (702)
Income tax expense         1,482 
Other income         (21)
Interest expense, net         439 
Operating income (loss)$  11,197 $  4,193 $  2,561 $  (852)$  (1,317)$  (7,601)$  8,181 
Depreciation and amortization   4,429    3,221    1,952    936    1,207    1,332    13,077 
Transaction-related charges -  -  -  -    3,910    420    4,330 
Adjusted EBITDA$  15,626 $  7,414 $  4,513 $  84 $  3,800 $  (5,849)$  25,588 

 





 

Reconciliation of Net Income to Adjusted EBITDA for the Years Ended December 31, 2014 and 2015
        
Year Ended December 31, 2014
 U.S Wireless         Total
 International
Integrated
Telephony
 Island
Wireless
 U.S. Wireline Renewable
Energy
 Reconciling
Items
 
        
Net income attributable to Atlantic Tele-Network, Inc. stockholders      $  48,152 
Net income attributable to non-controlling interests, net of tax         10,970 
Gain on disposal of discontinued operations, net of tax         (1,102)
Income tax expense         28,148 
Other income         (1,012)
Interest expense, net         420 
Operating income (loss)$  89,187 $  19,628 $  9,046 $   (3,668)$  (2,218)$  (26,399)$  85,576 
Depreciation and amortization   14,345    17,408    10,671    4,725    105    3,980    51,234 
Transaction-related charges -  -  -  -    2,497    462    2,959 
Adjusted EBITDA$  103,532 $  37,036 $  19,717 $  1,057 $  384 $  (21,957)$  139,769 
        
Year Ended December 31, 2015
 U.S Wireless         Total
 International
Integrated
Telephony
 Island
Wireless
 U.S. Wireline Renewable
Energy
 Reconciling
Items
 
        
Net income attributable to Atlantic Tele-Network, Inc. stockholders      $  16,940 
Net income attributable to non-controlling interests, net of tax         16,216 
Gain on disposal of discontinued operations, net of tax         (1,092)
Income tax expense         24,137 
Other income         (135)
Loss on deconsolidation of subsidiary         19,937 
Interest expense, net         2,592 
Operating income (loss)$  78,357 $  15,738 $  12,462 $  (3,898)$  6,720 $  (30,784)$  78,595 
Depreciation and amortization   17,605    16,470    8,413    4,635     4,820    4,947    56,890 
Gain on disposal of long-lived assets   (2,823)        (2,823)
Transaction-related charges -  -  -  -    4,007    3,175    7,182 
Adjusted EBITDA$  93,139 $  32,208 $  20,875 $  737 $  15,547 $  (22,662)$  139,844 

          

 




         

         Table 5
ATLANTIC TELE-NETWORK, INC.
Reconciliation of Non-GAAP Measures
(In Thousands)
          
          
Reconciliation of Net Income Attributable to Atlantic Tele-Network, Inc Stockholders and Earnings Per Share to Net 
Income Attributable to Atlantic Tele-Network, Inc Stockholders Excluding Loss on Deconsolidation of Subsidiary and
Diluted Earnings Per Share for the Three Months Ended December 31, 2014 and 2015  
          
Three Months Ended December 31, 2014
          
         Total
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders   $  12,632 
          
Adjustments: None        - 
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders excluding loss    
on deconsolidation of subsidiary      $  12,632 
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder        $  0.79 
          
Adjustments: None        - 
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder excluding loss on deconsolidation of subsidiary    $  0.79 
          
          
          
Three Months Ended December 31, 2015
          
         Total
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders   $  4,184 
          
Adjustments: None        - 
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders excluding loss    
on deconsolidation of subsidiary, net of tax     $  4,184 
          
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder        $  0.26 
          
Adjustments: None        - 
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder excluding loss on deconsolidation of subsidiary    $  0.26 
          
          









ATLANTIC TELE-NETWORK, INC.
Reconciliation of Non-GAAP Measures
(In Thousands)
          
          
Reconciliation of Net Income Attributable to Atlantic Tele-Network, Inc Stockholders and Earnings Per Share to Net 
Income Attributable to Atlantic Tele-Network, Inc Stockholders Excluding Loss on Deconsolidation of Subsidiary and
Diluted Earnings Per Share for the Year Ended December 31, 2014 and 2015   
          
Year Ended December 31, 2014
          
         Total
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders   $  48,152 
          
Adjustments: None        - 
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders excluding loss    
on deconsolidation of subsidiary      $  48,152 
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder        $  3.01 
          
Adjustments: None        - 
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder excluding loss on deconsolidation of subsidiary    $  3.01 
          
          
          
Year Ended December 31, 2015
          
         Total
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders   $  16,940 
          
Loss on deconsolidation of subsidiary        19,937 
Income tax expense adjustment       - 
          
Net income attributable to Atlantic Tele-Network, Inc. stockholders excluding loss    
on deconsolidation of subsidiary, net of tax     $  36,877 
          
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder        $  1.05 
          
Adjustment for loss on deconsolidation        1.24 
          
Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc.   
stockholder excluding loss on deconsolidation of subsidiary    $  2.29 
          
          
Contact:

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

Justin D. Benincasa
Chief Financial Officer
978-619-1300