ATN International, Inc.
Feb 22, 2017

ATN Reports Fourth Quarter and Full Year 2016 Results

Fourth Quarter Financial Highlights:

BEVERLY, Mass., Feb. 22, 2017 (GLOBE NEWSWIRE) -- ATN (NASDAQ:ATNI) today reported results for the fourth quarter and year ended December 31, 2016. 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.  In the first quarter of 2016, the Company changed its segment reporting structure and an unaudited recast of financial information for the eight quarterly periods in the fiscal years ending December 31, 2014 and 2015 can be found in the Company's Form 8-K filing dated April 12, 2016.

Business Review and Outlook

"Fourth quarter performance represented a solid finish to a year in which we significantly expanded the scope of ATN's operations through synergistic acquisitions in telecom services and strategic and organic initiatives in renewable energy," said Michael Prior, Chief Executive Officer.  "Revenue contributions in the fourth quarter from our 2016 telecom acquisitions in Bermuda and U.S. Virgin Islands were consistent with plan, and our first India renewable energy projects, while not generating revenue yet, are set to deliver electricity production in the 2017 first quarter.

"We are pleased with the market positioning of our international telecom operations. Revenues have remained steady during the integration of our Bermuda and USVI acquisitions, providing a solid platform for long term development and cash flows.  Our early efforts have been focused on improving network performance and delivering service upgrades to ensure a superior customer experience and further strengthen our leading market positions.  We will continue to make network investments in all our international markets in 2017, with a significant decline in those capital expenditures expected for 2018.
   
"U.S. wholesale wireless continued to face the effect of lower rates, offset in part by higher retail revenues.  The net result was a modest decline in revenues and EBITDA in the fourth quarter compared to last year. This quarter-over-quarter trend is likely to be a factor again in 2017, but the impact should be less pronounced, as rate reductions stabilize and we benefit from additional operating efficiencies.

"We were delayed on our build schedule in India due in large part to the government imposed currency reform, but we are moving forward with new construction and anticipate having 50MW operational in the second quarter and potentially twice that by year end.  We are exploring financing alternatives on completed projects, which will help determine the pace and extent of our construction of new solar facilities in India for the second half of the year.  At present, we still see an attractive opportunity to build more than 250MW of distributed generation projects in India over the next two years.   

"More broadly, we expect 2017 to be a year of continued progress for ATN.  We have a strong and growing base of operating cash flows, which reached approximately $112 million, inclusive of funding a $22 million pension obligation in lieu of purchase consideration paid to the seller for our U.S. Virgin Islands acquisition, for 2016, and significant remaining capacity on our balance sheet.  We have recently completed or expect to complete some smaller strategic acquisitions and dispositions which should improve both of those attributes.  Our telecom operations consist of a balanced and diversified portfolio of wireless and wireline assets, many of which are in markets where we have significant operating synergies that may be realized over time.  Our India solar projects do not rely on government subsidies for economic returns, and while pricing per kWh is lower than in the U.S., we expect our India operations to generate more than $2 million in very high incremental margin revenue in the 2017 fourth quarter and to grow steadily from there," Mr. Prior concluded.

Fourth Quarter and Full Year 2016 Financial Results

Fourth quarter 2016 revenues were $128.5 million, a 55% increase from the $82.9 million reported for the fourth quarter of 2015. Revenue growth resulted primarily from a $46.5 million, or 122%, increase in our International Telecom segment revenues mostly due to the impact of our recent Bermuda and U.S. Virgin Islands acquisitions. Adjusted EBITDA1 for the fourth quarter was $34.1 million, 33% above the prior year period, primarily from the impact of the recent acquisitions and reduced operating expenses in Guyana and in U.S. Telecom, partially offset by a decline in Renewable Energy operating results. Operating income for the fourth quarter, which included a $10.0 million increase in depreciation and amortization expense primarily due to the recent acquisitions, was $10.9 million, an increase of 33% when compared to the prior year period.

Net income attributable to ATN's stockholders for the fourth quarter was $2.3 million or $0.14 per diluted share, a decline of 44% compared with the prior year period of $4.2 million, or $0.26 per diluted share due to increased depreciation and amortization expense, and higher net interest expense related to the recent acquisitions and investments.   

Revenues for the full year 2016 were $457.0 million, a 29% increase from the $355.4 million reported for the same period of 2015.  Adjusted EBITDA1 for the full year 2016 was $149.0 million, up 7% from the prior year.  Operating income of $50.8 million for the full year 2016 declined from the prior year's $78.6 million due in large part to a $19.1 million increase in depreciation and amortization, a $9.1 million increase in transaction-related expenses associated with the acquisitions in 2016, and an $11.4 million impairment charge in the year.  Net income attributable to ATN's stockholders for the full year 2016 was $12.5 million or $0.77 per diluted share, compared with the prior year $16.9 million, or $1.05 per diluted share.  

Fourth Quarter 2016 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 of wireless revenues from our voice and data wholesale roaming operations and our smaller retail operations in the Southwestern United States and wireline revenues from our wholesale transport and enterprise business in the Northeastern United States.  Total U.S. Telecom segment revenues were $39.0 million in the fourth quarter of 2016, a 1% decrease from the $39.3 million reported in the fourth quarter of 2015.  U.S. Wireless revenues declined 5% to $30.9 million compared with $32.4 million in the prior year quarter, due mostly to lower wholesale roaming rates, partially offset by growth in data traffic volumes and low margin retail wireless revenues.   U.S. Wireline revenues were $7.7 million, up from $6.3 million in the prior year. The Company ended the fourth quarter of 2016 with 1,006 domestic base stations in service compared to 877 at the end of last year's fourth quarter. 

U.S. Telecom Adjusted EBITDA1 of $16.4 million in the fourth quarter of 2016 increased 5% compared to the prior year's $15.7 million.  The increase was primarily due to a reduction in segment operating expenses which offset lower wholesale wireless revenues in the current year quarter.   

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 including the U.S. Virgin Islands. International Telecom revenues were $84.7 million in the fourth quarter of 2016, a 122% increase from the $38.2 million reported in the fourth quarter of 2015.  Our recent acquisitions in Bermuda and the U.S. Virgin Islands added $47.3 million of incremental revenues during the current year quarter and were responsible for this increase.

International Telecom Adjusted EBITDA1 of $21.1 million in the fourth quarter increased 77% from $11.9 million in the prior year period.  The increase is the result of the 2016 acquisitions and lower year over year operating expenses in Guyana.    

Renewable Energy

Renewable Energy segment revenues are generated principally by the sale of energy and solar renewable energy credits from our 28 commercial solar projects in the United States.  For the fourth quarter of 2016, revenues from our renewable energy business were $4.8 million, down 11% from the $5.4 million in the prior year mostly due to the expiration of certain renewable energy credits in California.  Adjusted EBITDA1 for the Renewable Energy segment was $2.8 million in the fourth quarter, a decrease of 27% from the prior year quarter due to the expiration of those credits and increased operating expenses from our new solar business in India prior to generating revenue. The expiry of that credit revenue will lower domestic renewable energy revenue in the coming quarters but both revenue and EBITDA for this segment will benefit as we begin generating revenue from the facilities under construction in India.  The construction delays in the fourth quarter of 2016 have pushed back the timeline on the revenue and EBITDA contribution of the new solar facilities in India

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents at December 31, 2016 were $269.7 million.  In addition, the Company held $9.2 million of short-term investments and $18.6 million of restricted cash.  Net cash provided by operating activities was $111.7 million for the full year of 2016, compared with $139.2 million for the full year of 2015.  The decrease in net cash provided by operating activities is due to lower net income in 2016, including the impact of transaction and restructuring charges, the funding of a $22.5 million pension obligation in lieu of purchase consideration paid to the seller for our U.S. Virgin Islands acquisition, and changes in deferred income taxes.  Capital expenditures were $124.3 million for the full year 2016, which included $22.6 million spent on renewable energy projects. The Company expects full year 2017 capital expenditures for its Telecom businesses, including the recent Bermuda and USVI acquisitions, to be in the range of $95 million to $115 million.  Capital expenditures in the domestic and international telecom segments are higher than what we would expect in the ordinary course due to concurrent network expansions and upgrades in multiple markets. These projects include extensive fiber builds and upgrades and market-wide mobile data network upgrades.  Once complete, we expect aggregate capital expenditures in existing telecom markets to decline significantly in 2018. In addition, capital expenditures for our Renewable Energy business are expected to be in the range of $40 million to $60 million for the full year 2017, primarily related to ongoing construction of our solar projects in India.

Conference Call Information

ATN will host a conference call on Thursday, February 23, 2017 at 9:30 a.m. Eastern Time (ET) to discuss its fourth quarter and year ended 2016 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 70892859. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on Thursday, February 23, 2017.

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, 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 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 the closing of the sale of our wireline business in the Northeastern United States; the anticipated timing of our build schedule and the commencement of 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 operate our newly acquired businesses in Bermuda and the U.S. Virgin Islands and integrate these operations into our existing operations; (2) the general performance of our operations, including operating margins, revenues, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power; (3) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables business; (4) economic, political and other risks facing our operations; (5) our ability to maintain favorable roaming arrangements; (6) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to find investment or acquisition or disposition opportunities that fit our strategic goals for the Company; (9) increased competition; (10) our ability to expand our renewable energy business; (11) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) the occurrence of weather events and natural catastrophes; (14) our continued access to capital and credit markets; (15) the risk of currency fluctuation for those markets in which we operate: (16) our ability to realize the value that we believe exists in our businesses; and (17) our ability to receive requisite regulatory consents and approvals and satisfy other conditions needed to complete the pending sale of our wireline business in the Northeastern United States. 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, 2015, filed with the SEC on February 29, 2016 and the Company's Quarterly Report on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016, and September 30, 2016 filed with the SEC on May 10, 2016, August 9, 2016, and November 10, 2016, respectively, and 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 an Adjusted EBITDA measure. Adjusted EBITDA is defined as net income attributable to ATN stockholders before income from discontinued operations, bargain purchase gain, impairment of long-lived assets, restructuring charges, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, and net income attributable to non-controlling interests. 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 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.

   

Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
    
 December 31, December 31,
 2016 2015
Assets:   
Cash and cash equivalents$  269,721 $  392,045
Restricted cash   524    824
Short-term investments   9,237    - 
Other current assets   88,294    75,623
    
Total current assets   367,776    468,492
    
Long-term restricted cash   18,113    5,477
Property, plant and equipment, net   647,712    373,503
Goodwill and other intangible assets, net   128,084    90,043
Other assets   36,533    7,489
    
Total assets$  1,198,218 $  945,004
    
Liabilities and Stockholders' Equity:   
Current portion of long-term debt$  12,440 $  6,284
Taxes payable   13,531    9,181
Other current liabilities   124,202    68,890
    
Total current liabilities   150,173    84,355
    
Long-term debt, net of current portion$  144,383 $  26,575
Deferred income taxes   47,072    45,406
Other long-term liabilities   47,871    26,944
    
Total long-term liabilities   239,326    98,925
    
Total liabilities   389,499    183,280
    
Total ATN International, Inc.'s stockholders' equity   676,495    680,299
Non-controlling interests   132,224    81,425
    
Total equity   808,719    761,724
    
Total liabilities and stockholders' equity$  1,198,218 $  945,004
    

 

        Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
        
  Three Months Ended Year Ended
 December 31, December 31,
   2016   2015   2016   2015 
Revenues:        
Wireless$  51,498  $  52,263  $  228,798  $  237,042 
Wireline   65,777     21,988     188,019     86,485 
Renewable energy    4,672     5,409     21,608     21,040 
Equipment and other   6,585     3,256     18,578     10,802 
Total revenue   128,532     82,916     457,003     355,369 
        
Operating expenses:       
Termination and access fees   35,754     19,862     116,427     77,806 
Engineering and operations   16,632     10,991     52,902     39,582 
Sales, marketing and customer service   8,663     6,264     31,050     23,898 
Equipment expense   4,037     4,764     14,342     14,803 
General and administrative   29,344     15,447     93,293     59,436 
Transaction-related charges   123     4,330     16,279     7,182 
Restructuring charges    -      -      1,785     -  
Depreciation and amortization    23,067     13,077     75,980     56,890 
Impairment of long-lived assets    -      -      11,425     -  
Bargain purchase gain    -      -      (7,304)    -  
(Gain) loss on disposition of long-lived assets   -      -      27     (2,823)
Total operating expenses   117,620     74,735     406,206     276,774 
        
Operating income    10,912     8,181     50,797     78,595 
        
Other income (expense):       
Interest expense, net   (1,377)    (439)    (4,123)    (2,592)
Loss on deconsolidation of subsidiary   -      -      -      (19,937)
Other income, net   (944)    21     (300)    135 
Other expense, net   (2,321)    (418)    (4,423)    (22,394)
        
Income from continuing operations before income taxes    8,591     7,763     46,374     56,201 
Income tax expense   4,433     1,482     21,610     24,137 
        
Income from continuing operations   4,158     6,281     24,764     32,064 
         
Gain on disposal of discontinued operations, net of tax   -      702     -      1,092 
         
Net income    4,158     6,983     24,764     33,156 
Net income attributable to non-controlling interests, net   (1,822)    (2,799)    (12,223)    (16,216)
         
Net income attributable to ATN International, Inc. stockholders$  2,336  $  4,184  $  12,541  $  16,940 
        
Basic net income per weighted average share attributable to ATN International, Inc. stockholders:       
Income from continuing operations$  0.14  $  0.22  $  0.78  $  0.99 
Income from discontinued operations   -      0.04     -      0.07 
Net income $  0.14  $  0.26  $  0.78  $  1.06 
         
Diluted net income per weighted average share attributable to ATN International, Inc. stockholders:       
Income from continuing operations$  0.14  $  0.22  $  0.77  $  0.98 
Income from discontinued operations   -      0.04     -      0.07 
Net income $  0.14  $  0.26  $  0.77  $  1.05 
         
Weighted average common shares outstanding:       
Basic   16,139     16,061     16,131     16,022 
Diluted   16,223     16,179     16,227     16,142 
         

 

Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
  
 Year Ended December 31,
  2016   2015 
    
Net income$  24,764  $  33,156 
Income from discontinued operations   -      (1,092)
Depreciation and amortization   75,980     56,890 
Stock-based compensation   6,410     4,975 
Loss on deconsolidation of subsidiary   -      19,937 
Bargain purchase gain   (7,304)    -  
(Gain) loss on disposition of long-lived assets   27     (2,823)
Impairment of long-lived assets   11,425     -  
Deferred income taxes   (5,136)    17,869 
Pension funding required by Innovative acquisition   (22,494)    -  
Change in prepaid and accrued income taxes   21,497     9,478 
Change in other operating assets and liabilities   2,959     (1,230)
Other non-cash activity   3,528     1,920 
    
Net cash provided by operating activities of continuing operations   111,656     139,080 
Net cash provided by operating activities of discontinued operations   -      158 
Net cash provided by operating activities   111,656     139,238 
    
Capital expenditures   (124,282)    (64,753)
Acquisition of businesses and non-controlling interests, net of acquired cash of $12,611 and $6,571   (153,440)    (11,968)
Purchases of spectrum licenses, including deposits   (10,860)    -  
Net proceeds from sale of assets   1,424     5,873 
Purchase of short-term investments   (7,422)    -  
Purchase of securities   (2,000)    -  
Change in restricted cash   (12,108)    38,877 
    
    
Net cash used in investing activities   (308,688)    (31,971)
    
Dividends paid on common stock   (20,965)    (19,070)
Proceeds from new borrowings   125,800     -  
Distributions to non-controlling interests   (8,632)    (16,514)
Repayments of long-term debt    (33,564)    (6,017)
Purchases of common stock   (4,114)  (1,893
Investments made by minority shareholders   22,409     -  
Other   (5,600)   2,056 
    
Net cash provided by (used in) financing activities   75,334     (41,438)
    
Effect of foreign currency exchange rates on cash and cash equivalents   (626)    -  
    
Net change in cash and cash equivalents   (122,324)    65,829 
    
Cash and cash equivalents, beginning of period   392,045     326,216 
    
Cash and cash equivalents, end of period$  269,721  $  392,045 
    

 

     Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands, Except Operational Data)
      
For the three months ended December 31, 2016 is as follows:
      
 U.S. 
Telecom 
International
Telecom
 
Renewable
Energy
 
Reconciling
Items
Total
      
Statement of Operations Data:     
Revenue     
Wireless$  30,859 $  20,639 $  -  $  -  $  51,498 
Wireline   7,655    58,122    -     -     65,777 
Renewable Energy   -     -     4,672    -     4,672 
Equipment and Other   510    5,941    134    -     6,585 
Total Revenue$  39,024 $  84,702 $  4,806 $  -  $  128,532 
      
Operating Income (Loss)$  9,485 $  8,011 $  488 $  (7,072)$  10,912 
      
Non-controlling interest ( net income or (loss) )$  (946)$  (588)$  (288)$  -  $  (1,822)
      
Non GAAP measure:     
Adjusted EBITDA $  16,446 $  21,127 $  2,762 $  (6,233)$  34,102 
      
Statement of Cash Flow Data:     
Capital expenditures$  5,273 $  26,265 $  12,290 $  1,999 $  45,827 
      
Balance Sheet Data:     
Cash, cash equivalents and investments$  22,235 $ 97,681 $ 27,378 $  131,664 $  278,958 
Total current assets   50,983  143,202
   37,439    136,152    367,776 
Fixed assets, net   129,274    372,741    130,268    15,429    647,712 
Total assets   240,006    597,454    190,253    170,505    1,198,218 
Total current liabilities   23,162    95,570    12,603    18,838    150,173 
Total debt   -     91,316    65,507    -     156,823 
      
      
International Telecom Operational Data:     
Wireline - Voice / Access lines    179,700    
Wireline - Data Subscribers    97,400    
Wireline - Video Subscribers    60,600    
Wireless - Subscribers    310,800    
      
      
      
      
      
      
For the three months ended December 31, 2015 is as follows:
      
 U.S. 
Telecom 
International
Telecom
 
Renewable
Energy
 
Reconciling
Items
Total
      
Statement of Operations Data:     
Revenue     
Wireless$  32,397 $  19,866 $  -  $  -  $  52,263 
Wireline   6,326    15,662    -     -     21,988 
Renewable Energy   -     -     5,409    -     5,409 
Equipment and Other   582    2,674    -     -     3,256 
Total Revenue$  39,305 $  38,202 $  5,409 $  -  $  82,916 
      
Operating Income (Loss)$  10,345 $  6,754 $  (1,317)$  (7,601)$  8,181 
      
Non-controlling interest ( net income or (loss) )$  (430)$  (2,098)$  (271)$  -  $  (2,799)
      
Non GAAP measure:     
Adjusted EBITDA $  15,710 $  11,927 $  3,800 $  (5,849)$  25,588 
      
Statement of Cash Flow Data:     
Capital expenditures$  9,956 $  7,007 $  13 $  1,746 $  18,722 
      
Balance Sheet Data:     
Cash, cash equivalents and investments$  10,639 $  92,942 $  7,436 $  281,028 $  392,045 
Total current assets   41,599    117,712    10,735    298,446    468,492 
Fixed assets, net   119,596    134,344    106,560    13,003    373,503 
Total assets   225,292    276,580    122,788    320,344    945,004 
Total current liabilities   26,399    31,675    7,314    18,967    84,355 
Total debt   -     -     32,859    -     32,859 
      
      
      
      
      
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the year ended December 31, 2016 is as follows:
      
 U.S. 
Telecom 
International
Telecom
 
Renewable
Energy
 
Reconciling
Items
 
Total
      
Statement of Operations Data:     
Revenue     
Wireless$  148,053 $  80,745  $ $  -  $  228,798 
Wireline   26,448    161,571      -     188,019 
Renewable Energy   -     -     21,608    -     21,608 
Equipment and Other   2,225    15,960    393    -     18,578 
Total Revenue$  176,726 $  258,276 $  22,001 $  -  $  457,003 
      
Operating Income (Loss)$  49,078 $  36,436 $  (246)$  (34,471)$  50,797 
      
Non-controlling interest ( net income or (loss) )$  (5,833)$  (4,499)$  (1,890)$  -  $  (12,222)
      
Non GAAP measure:     
Adjusted EBITDA $  84,625 $  75,358 $  14,885 $  (25,880)$  148,988 
      
Statement of Cash Flow Data:     
Capital expenditures$  31,983 $  62,808 $  22,615 $  6,876 $  124,282 
      
      
      
For the year ended December 31, 2015 is as follows:
      
 U.S. 
Telecom 
International
Telecom
 
Renewable
Energy
 
Reconciling
Items
 
Total
      
Statement of Operations Data:     
Revenue     
Wireless$  155,390 $  81,652 $  -  $  -  $  237,042 
Wireline   25,241    61,244    -     -     86,485 
Renewable Energy   -     -     21,040    -     21,040 
Equipment and Other   2,355    8,447    -     -     10,802 
Total Revenue$  182,986 $  151,343 $  21,040 $  -  $  355,369 
      
Operating Income (Loss)$  74,459 $  28,200 $  6,720 $  (30,784)$  78,595 
      
Non-controlling interest ( net income or (loss) )$  (5,563)$  (8,908)$  (1,745)$  -  $  (16,216)
      
Non GAAP measure:     
Adjusted EBITDA $  93,876 $  53,083 $  15,547 $  (22,662)$  139,844 
      
Statement of Cash Flow Data:     
Capital expenditures$  37,590 $  22,804 $  38 $  4,321 $  64,753 
      

 

     Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
      
      
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended December 31, 2016 and 2015
      
Three Months Ended December 31, 2016
 U.S. 
Telecom 
International
Telecom

Renewable
Energy
Reconciling
Items
Total
      
Net income attributable to ATN International, Inc. stockholders    $  2,336 
Net income attributable to non-controlling interests, net of tax       1,822 
Income tax expense       4,433 
Other income, net       944 
Interest expense, net       1,377 
Operating income$  9,485 $  8,011 $  488 $  (7,072)$  10,912 
Depreciation and amortization   6,961    13,116    1,345    1,645    23,067 
Transaction-related charges   -     -     929    (806)   123 
Adjusted EBITDA $  16,446 $  21,127 $  2,762 $  (6,233)$  34,102 
      
      
      
Three Months Ended December 31, 2015
 U.S. 
Telecom 
International
Telecom

Renewable
Energy
Reconciling
Items
Total
      
Net income attributable to ATN International, 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, net       (21)
Interest expense, net       439 
Operating income$  10,345 $  6,754 $  (1,317)$  (7,601)$  8,181 
Depreciation and amortization   5,365    5,173    1,207    1,332    13,077 
Transaction-related charges   -     -     3,910    420    4,330 
Adjusted EBITDA $  15,710 $  11,927 $  3,800 $  (5,849)$  25,588 
      
      
      
      
      
Reconciliation of Net Income to Adjusted EBITDA for the Year Ended December 31, 2016 and 2015
      
Year Ended December 31, 2016
 U.S. 
Telecom 
International
Telecom

Renewable
Energy
Reconciling
Items
Total
      
Net income attributable to ATN International, Inc. stockholders    $  12,541 
Net income attributable to non-controlling interests, net of tax       12,223 
Income tax expense       21,610 
Other income, net       300 
Interest expense, net       4,123 
Operating income$  49,078 $  36,436 $  (246)$  (34,471)$  50,797 
Depreciation and amortization   24,471    40,492    4,987    6,030    75,980 
(Gain) loss on disposition of long-lived asset   -     27    -     -     27 
Bargain purchase gain   -     (7,304)   -     -     (7,304)
Impairment of long-lived assets   11,076    349    -     -     11,425 
Restructuring charges   -     1,785    -     -     1,785 
Transaction-related charges   -     3,573    10,144    2,561    16,278 
Adjusted EBITDA $  84,625 $  75,358 $  14,885 $  (25,880)$  148,988 
      
      
      
Year Ended December 31, 2015
 U.S. 
Telecom 
 International
Telecom

Renewable
Energy
Reconciling
Items
Total
      
Net income attributable to ATN International, Inc. stockholders    $  16,940 
Net income attributable to non-controlling interests, net of tax       16,216 
(Gain) loss on disposition of long-lived asset       (1,092)
Income tax expense       24,137 
Other income, net       (135)
Loss on deconsolidation of subsidiary       19,937 
Interest expense, net       2,592 
Operating income$  74,459 $  28,200 $  6,720 $  (30,784)$  78,595 
Depreciation and amortization   22,240    24,883    4,820    4,947    56,890 
(Gain) loss on disposition of long-lived asset   (2,823)   -     -     -     (2,823)
Transaction-related charges   -     -     4,007    3,175    7,182 
Adjusted EBITDA $  93,876 $  53,083 $  15,547 $  (22,662)$  139,844 
      


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

 

CONTACT:

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

Justin D. Benincasa
Chief Financial Officer