ATN International, Inc.
Feb 21, 2018

ATN Reports Fourth Quarter and Full Year 2017 Results

Fourth Quarter Financial Highlights:

BEVERLY, Mass., Feb. 21, 2018 (GLOBE NEWSWIRE) -- ATN (NASDAQ:ATNI) today reported results for the fourth quarter and year ended December 31, 2017. Unless otherwise indicated, the discussion of the Company's results is in comparison to the same period in the prior year.

Business Review and Outlook

"Fourth quarter revenue performance was consistent with our expectations across all of our business units and represents a base to build upon in 2018," said Michael Prior, Chief Executive Officer. "Those expectations included lower International Telecom segment revenue due to the tremendous damage caused by the two Category 5 hurricanes that hit the Virgin Islands in September.  The Viya team, with support from ATN and contractors, has been working around the clock to get our hurricane-damaged U.S. Virgin Islands operations back to normal, following progress on power restoration. As previously noted, while we are making major progress in the first quarter, full restoration of the wireline networks will take until mid-2018 based on recent estimates. On a consolidated basis, our profits for the quarter rebounded from the third quarter, as well as year-on-year, as we recognized the full benefit on our storm-related insurance claims and were able to reduce our group tax liabilities due to the recent U.S. tax law changes.  Those changes will benefit us moving forward and help level the competitive playing field in a number of international markets as well as freeing us up to more efficiently allocate capital to the most promising investments and operations.

"Full year 2017 results included both the positive and negative impacts of several special items, which have skewed year-on-year comparisons, but we have entered 2018 with much of our business positioned for sequential improvement into 2019.  We expect to see progressively better performance from our International Telecom operations as we re-connect customers in the U.S. Virgin Islands and continue to grow our broadband subscriber base following fiber network expansions in other markets.

"As previously noted, we expect our U.S. Telecom segment's 2018 revenues to be below 2017 levels, in the range of $110 million to $120 million. Almost two-thirds of the projected decrease is related to significant asset sales, notably our Northeast wireline operation, which closed in March of 2017, and the previously-announced sale of 100 wholesale wireless sites to a carrier customer that is expected to close in early 2018. The balance is attributable to lower contractual roaming rates in our domestic wholesale business, the impact of which we expect to partially offset through lower ongoing capital expenditures and reduced operating expenses.  Looking further ahead, we see our existing domestic telecommunications properties as a relatively consistent source of cash flows to fund investments and other opportunities for growth. 

"In renewable energy many of our recently completed sites have received regulatory approval and are now generating revenue.  As we head into 2018, we expect our first phase of completed solar power plants in India to generate revenue of approximately $6 to $7 million per annum.  We are in discussions with funding partners and evaluating the pace and extent of our expansion opportunities in India beyond this initial phase.  

"We generated strong operating cash flow in 2017, and increased free cash flow continues to be a focus as we carefully analyze capital spending in our telecom businesses. Outside of hurricane restoration costs, we expect 2018 capital spending to be significantly lower than in the last few years, reflecting the pending completion of several major network upgrades in our international telecom segment and the alignment of domestic wholesale capital investment with current market conditions.  Tax reform will lower our effective tax rate from our historical average and will provide additional resources for investment in organic and strategic growth," Mr. Prior noted.

Fourth Quarter and Full Year 2017 Financial Results

Fourth quarter 2017 revenues were $107.7 million, a 16% decrease from the $128.5 million reported for the fourth quarter of 2016.  Revenue decreases for the quarter included approximately $17 million in reductions due to service disruptions as a result of the September 2017 hurricanes in the U.S. Virgin Islands in addition to the absence of revenue from our recently exited U.S. wireline business.  These reductions were partially offset by revenue increases in our U.S. wireless business, growth in international broadband and wireless revenues and the ramping up of revenue generation from our solar business in India.  Adjusted EBITDA1 for the fourth quarter was $30.8 million, 7% below the prior year period, primarily associated with the foregoing revenue decreases.  Operating income for the fourth quarter was $41.5 million due in large part to the $32.6 million from the recognition of insurance benefits from the hurricanes partially offset by hurricane charges.  Operating income excluding hurricane charges and insurance recoveries2 for the fourth quarter was $8.9 million.

Net income attributable to ATN's stockholders for the fourth quarter was $43.5 million or $2.71 per diluted share, an increase over the prior year net income of $1.9 million or $0.12 per diluted share.  The Income Tax benefit for the quarter reflects the recent passage of the Tax Cuts and Jobs Act of 2017 and includes a $7.4 million transition tax on foreign earnings offset by an $18.4 million benefit from reduced federal rates on our deferred tax liabilities.  Net Income attributable to ATN stockholders excluding hurricane charges and insurance recoveries2 for the fourth quarter was $11.0 million, or $0.69 per diluted share.
                                                                                                                      
Revenues for the full year 2017 were $481.2 million, a 5% increase from the $457.0 million reported for the full year 2016.  Revenue increases for this period are mostly due to the full year 2017 impact of the 2016 acquisitions in Bermuda and the U.S. Virgin Islands, partially offset by decreases in the U.S. wireless business and the 2017 sale of the U.S. wireline business.  Adjusted EBITDA1 for the full year 2017 was $148.6 million, an increase of 1% from the prior year.  Operating income for the full year 2017 was $55.5 million compared with $49.8 million of operating income in the prior year.  Net income for the full year attributable to ATN stockholders was $31.5 million or $1.94 per diluted share, as compared to the prior year $12.1 million and $0.75 per diluted share.

Fourth Quarter 2017 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 $34.8 million in the fourth quarter of 2017, an 11% decrease from the $39.0 million reported in the fourth quarter of 2016.  U.S. wireless revenues increased 4% to $32.1 million compared with $30.9 million in the prior year quarter due mostly to increased wholesale traffic.   U.S. wireline revenues decreased to $2.2 million from $7.7 million in the prior year quarter primarily as a result of the sale of our Northeastern U.S. wireline business in early March 2017. The Company ended the fourth quarter of 2017 with 1,100 domestic base stations in service compared to 1,006 at the end of 2016. 

U.S. Telecom Adjusted EBITDA1 of $16.8 million in the fourth quarter of 2017 increased 2% compared to the prior year's $16.4 million.  The increase was mainly due to the growth in wireless revenues and reductions in wireless operating expenses.   

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 $66.9 million in the fourth quarter of 2017, a 21% decrease from the $84.7 million reported in the fourth quarter of 2016.  While some of the reduction in revenues is due to the sale of businesses in St. Maarten and the British Virgin Islands earlier in 2017 and despite some offsetting increases in certain markets, the bulk of the decline was due to the extensive network storm-driven service outages in the U.S. Virgin Islands.  The first quarter of 2018 will also see significantly lower revenue for this segment given the continued impacts of the hurricanes.  We expect revenue in the second quarter to recover throughout the period, though the level of damage to the Virgin Islands economy may mean it is some time before we see a return to pre-storm levels in that market.  We are carefully evaluating the scope and other aspects of our investments in network restoration in light of the situation.

International Telecom Adjusted EBITDA1 of $16.8 million in the fourth quarter decreased 17% from $20.1 million in the prior year period.  The decrease is primarily the result of the revenue impact from service outages resulting from the hurricanes in the U.S. Virgin Islands.    

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 fourth quarter of 2017, revenues from our renewable energy business were $5.9 million, and increased 23% from the $4.8 million in the prior year due mainly to commencement of revenue generation from newly completed solar power plants in India.  The growth in India power production revenue drove an increase in Adjusted EBITDA1 for the Renewable Energy segment to $3.6 million in the fourth quarter, up $0.9 million from the prior year's quarter.   

Balance Sheet and Cash Flow Highlights

Cash and short-term investments at December 31, 2017 were $215.0 million.  Net cash provided by operating activities was $145.7 million for the full year of 2017, compared with $111.7 million for the full year of 2016.  The increase in net cash provided by operating activities is largely due to lower acquisition related charges and a $22.5 million funding of a pension obligation in lieu of purchase consideration paid to the seller of 2016 U.S. Virgin Islands acquisition, offset partially by changes in working capital.  During 2017, the Company used cash of $20.5 million for investments in new assets and businesses and received $22.4 million from the sales and dispositions of other business lines.  Capital expenditures for the year totaled $142.4 million.  Included in the total was $103.1 million of capital expenditures in the domestic and international telecom segments, including $13.3 million incurred for hurricane restorations, and $30.9 million for the construction of solar facilities in India. The Company expects full year 2018 capital expenditures for its domestic and international telecom businesses to be $65 million to $80 million excluding hurricane restoration costs in the U.S. Virgin Islands.  Hurricane restoration capital expenditures are expected to be between $35 million and $45 million in 2018.  We estimate capital expenditures of approximately $5 million to $7 million will be spent to finish the initial phase of India renewables construction, however continued expansion in the market is largely dependent on our ability to secure local financing and the timing and terms and conditions which are difficult to estimate at this time.    

In the year ended December 31, 2017, the Company repurchased 201,932 shares of common stock totaling $10.6 million under its share repurchase program and paid $19.2 million in dividends.   

Conference Call Information

ATN will host a conference call on Thursday, February 22, 2018 at 9:30 a.m. Eastern Time (ET) to discuss its fourth quarter 2017 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 1685639. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on February 22, 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 restoration of our U.S. Virgin Islands operations; our estimates of total losses due to Hurricanes Irma and Maria; 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 the commencement of energy production of our India renewable energy projects; anticipated effects of recent U.S. tax changes; 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; (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, 2016, filed with the SEC on March 1, 2017 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:  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 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.                 

1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.
2 See Table 6 for reconciliation of Operating Income (Loss), Net Income (Loss) Attributable to ATN Stockholders and Net Income (Loss) Attributable to ATN Stockholders per share to Operating Income excluding hurricane charges and insurance recoveries, Net Income Attributable to ATN Stockholders excluding hurricane charges and insurance recoveries and Diluted Income per share Attributable to ATN Stockholders excluding hurricane charges and insurance recoveries, respectively.

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

Justin D. Benincasa
Chief Financial Officer

 

  
 Table 1
 ATN International, Inc.
 Unaudited Condensed Consolidated Balance Sheets
 (in Thousands)
     
  December 31, December 31,
 20172016
 Assets:   
   Cash and cash equivalents$  207,956 $  269,721
   Restricted cash   833    524
   Short-term investments   7,076    9,237
   Other current assets   127,062    87,887
     
   Total current assets   342,927    367,369
     
   Long-term restricted cash   11,101    18,113
   Property, plant and equipment, net   643,146    647,712
   Goodwill and other intangible assets, net   171,657    126,193
   Other assets   35,580    38,831
     
 Total assets$  1,204,411 $  1,198,218
     
 Liabilities and Stockholders' Equity:   
   Current portion of long-term debt$  10,919 $  12,440
   Taxes payable   7,126    13,531
   Other current liabilities   144,035    124,134
     
   Total current liabilities   162,080    150,105
     
   Long-term debt, net of current portion$  144,873 $  144,383
   Deferred income taxes   30,162    46,622
   Other long-term liabilities   37,073    47,939
     
   Total long-term liabilities   212,108    238,944
     
 Total liabilities   374,188    389,049
     
   Total ATN International, Inc.'s stockholders' equity   688,727    677,055
   Non-controlling interests   141,496    132,114
     
 Total equity   830,223    809,169
     
   Total liabilities and stockholders' equity$  1,204,411 $  1,198,218
     

 

             
           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, 
     2017   2016    2017   2016  
 Revenues:           
   Wireless $  54,096  $  51,498   $  222,040  $  228,798  
   Wireline    44,195     65,777      225,763     188,019  
   Renewable energy     5,702     4,672      20,467     21,608  
   Equipment and other    3,709     6,585      12,923     18,578  
   Total revenue    107,702     128,532      481,193     457,003  
            
 Operating expenses:          
   Termination and access fees    21,761     33,618      107,520     111,491  
   Engineering and operations    16,733     19,793      74,614     60,414  
   Sales, marketing and customer service    9,008     8,439      35,184     30,253  
   Equipment expense    4,385     4,200      13,104     14,951  
   General and administrative    24,997     29,381      102,134     91,905  
   Transaction-related charges    123     123      1,009     16,279  
   Restructuring charges     1,169     -       1,169     1,785  
   Depreciation and amortization     21,028     23,067      86,934     75,980  
   Impairment of long-lived assets     -      -       -      11,425  
   Bargain purchase gain     -      -       -      (7,304) 
   (Gain) loss on sale of assets     (412)    -       101     27  
   Loss on damaged assets and other hurricane related           
      charges, net of insurance recovery    (32,610)    -       3,956     -   
 Total operating expenses    66,182     118,621      425,725     407,206  
            
 Operating income    41,520     9,911      55,468     49,797  
            
 Other income (expense):          
   Interest expense, net    (1,920)    (1,377)     (7,225)    (4,123) 
   Loss on deconsolidation of subsidiary    -      -       (529)    -   
   Other income (expense)     1,590     (944)     (161)    (300) 
   Other expense, net    (330)    (2,321)     (7,915)    (4,423) 
            
 Income before income taxes    41,190     7,590      47,553     45,374  
   Income tax expense (benefit)    (6,180)    3,982      (1,341)    21,160  
            
 Net Income    47,370     3,608      48,894     24,214  
             
 Net Income attributable to non-controlling interests, net     (3,871)    (1,713)     (17,406)    (12,113) 
             
 Net Income attributable to ATN International, Inc. stockholders $  43,499  $  1,895   $  31,488  $  12,101  
            
 Basic net income per weighted average share attributable to ATN International, Inc. stockholders:           
             
   Net Income  $  2.71  $  0.12   $  1.95  $  0.75  
            
 Diluted net income per weighted average share attributable to ATN International, Inc. stockholders:           
            
   Net Income  $  2.71  $  0.12   $  1.94  $  0.75  
            
 Weighted average common shares outstanding:          
    Basic     16,023     16,139      16,138     16,131  
 Diluted      16,073     16,223      16,210     16,227  
             

 

   
 Table 3 
 ATN International, Inc. 
 Unaudited Condensed Consolidated Cash Flow Statement 
 (in Thousands) 
    
  Year Ended December 31, 
   2017   2016  
      
   Net income$  48,894  $  24,214  
   Depreciation and amortization   86,934     75,980  
   Stock-based compensation   6,984     6,410  
   Hurricane insurance recovery   (34,606)    
   Loss on damaged assets from hurricanes   35,443     
   Equity in earnings   2,033     -   
   Bargain purchase gain   -      (7,304) 
   Impairment of long-lived assets   -      11,425  
   Deferred income taxes   (14,216)    (5,636) 
   Pension funding required by Innovative acquisition   -      (22,494) 
   Change in prepaid and accrued income taxes   322     21,547  
   Change in other operating assets and liabilities   10,259     3,962  
   Other non-cash activity   3,678     3,552  
      
    Net cash provided by operating activities   145,725     111,656  
      
   Capital expenditures   (142,371)    (124,282) 
   Acquisition of businesses, net of acquired cash of $0 and $12.6 million   (20,470)    (146,395) 
   Sale of business, net of transferred cash of $2.1 million   22,381     -   
   Purchases of spectrum licenses and other intangible assets, including deposits   (36,832)    (10,860) 
   Acquisition of non-controlling interest in subsidiary   -      (7,045) 
   Purchase of marketable securities   -      (2,000) 
   Purchase of short-term investments      (7,422) 
   Proceeds from sale of investments   3,797     1,424  
   Change in restricted cash   6,702     (12,108) 
      
      
    Net cash used in investing activities   (166,793)    (308,688) 
      
   Dividends paid on common stock   (19,227)    (20,965) 
   Distributions to non-controlling interests   (6,858)    (8,632) 
   Principal repayments of term loan   (9,355)    (33,564) 
   Proceeds from new borrowings   8,571     125,800  
   Purchases of common stock   (12,855)    (4,114) 
   Investments made by minority shareholders in consolidated affiliates   122     22,409  
   Other   (1,321)    (5,600) 
      
    Net cash provided by (used in) financing activities   (40,923)    75,334  
      
 Effect of foreign currency exchange rates on cash and cash equivalents   226     (626) 
      
 Net change in cash and cash equivalents   (61,765)    (122,324) 
      
 Cash and cash equivalents, beginning of period   269,721     392,045  
      
 Cash and cash equivalents, end of period$  207,956  $  269,721  
      

 

      Table 4 
 ATN International, Inc. 
 Selected Segment Financial Information 
 (In Thousands) 
        
 For the three months ended December 31, 2017 is as follows: 
        
  U.S.
Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total 
        
 Statement of Operations Data:      
 Revenue      
   Wireless$  32,138 $  21,958 $  -  $  -  $  54,096  
   Wireline   2,213    41,982    -     -     44,195  
   Renewable Energy   -     -     5,702    -     5,702  
   Equipment and Other   493    2,991    225    -     3,709  
     Total Revenue$  34,844 $  66,931 $  5,927 $  -  $  107,702  
        
 Operating Income (Loss)$  10,798 $  36,356 $  1,910 $  (7,544)$  41,520  
 Non-controlling interest ( net income or (loss) )$  (1,679)$  (1,902)$  (290)$  -  $  (3,871) 
        
 Non GAAP measure:      
 Adjusted EBITDA $  16,793 $  16,788 $  3,637 $  (6,400)$  30,818  
        
 Balance Sheet Data (at December 31, 2017):      
 Cash, cash equivalents and investments$  19,585 $  110,702 $  8,120 $  76,625 $  215,032  
 Total current assets   40,975    190,385    18,060    93,507    342,927  
 Fixed assets, net   99,462    367,484    158,447    17,753    643,146  
 Total assets   200,142    629,006    192,407    182,856    1,204,411  
 Total current liabilities   41,248    91,887    14,754    14,191    162,080  
 Total debt   -     94,577    61,215    -     155,792  
        
 ATN International, Inc. 
 Selected Segment Financial Information 
 (In Thousands) 
        
 For the three months ended December 31, 2016 is as follows: 
        
  U.S.
Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
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 $  7,010 $  488 $  (7,072)$  9,911  
 Non-controlling interest ( net income or (loss) )$  (946)$  (478)$  (289)$  -  $  (1,713) 
        
 Non GAAP measure:      
 Adjusted EBITDA $  16,446 $  20,126 $  2,762 $  (6,233)$  33,101  
        
 Balance Sheet Data (at December 31, 2016):      
 Cash, cash equivalents and investments$  22,235 $  97,681 $  27,378 $  131,664 $  278,958  
 Total current assets   50,983    143,201    37,440    135,745    367,369  
 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    95,502    12,603    18,838    150,105  
 Total debt   -     91,316    65,507    -     156,823  
        
 *  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 
        
 Statement of Operations Data:      
 Revenue      
   Wireless$  140,636 $  81,404 $  -  $  -  $  222,040  
   Wireline   12,656    213,107    -     -     225,763  
   Renewable Energy   -     -     20,467    -     20,467  
   Equipment and Other   2,432    10,092    399    -     12,923  
     Total Revenue$  155,724 $  304,603 $  20,866 $  -  $  481,193  
        
 Operating Income (Loss)$  55,317 $  28,468 $  5,179 $  (33,496)$  55,468  
        
 Non-controlling interest ( net income or (loss) )$  (7,100)$  (9,178)$  (1,128)$  -  $  (17,406) 
        
 Non GAAP measure:      
 Adjusted EBITDA $  81,049 $  83,856 $  11,847 $  (28,115)$  148,637  
        
 Statement of Cash Flow Data:      
 Capital expenditures$  22,230 $  80,912 $  32,728 $  6,501 $  142,371  
        
        
 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
 
Corporate and
Other
  *
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 $  35,436 $  (246)$  (34,471)$  49,797  
        
 Non-controlling interest ( net income or (loss) )$  (5,834)$  (4,389)$  (1,890)$  -  $  (12,113) 
        
 Non GAAP measure:      
 Adjusted EBITDA $  84,625 $  74,358 $  14,885 $  (25,880)$  147,988  
        
 Statement of Cash Flow Data:      
 Capital expenditures$  31,983 $  62,808 $  22,615 $  6,876 $  124,282  
        
        
 *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments   
        
        
        
 ATN International, Inc. 
 Selected Segment Operational Data 
        
  Quarter ended 
  December 31,March 31,June 30,September 30,December 31, 
  2016 *2017 *2017 *2017 *2017 
        
 U.S. Telecom Operational Data:      
 Wireless - Total Domestic Base Stations   1,006    1,019    1,041    1,061    1,100  
        
        
 International Telecom Operational Data:      
 Wireline - Voice / Access lines   179,700    176,900    174,600    172,300    171,200  
 Wireline - Data Subscribers   97,400    99,900    101,700    102,400    104,900  
 Wireline - Video Subscribers   48,600    47,900    47,200    46,700    45,700  
 Wireless - Subscribers   304,700    302,900    302,900    302,000    307,200  
        
        
 * 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 December 31, 2017 and 2016 
        
 Three Months Ended December 31, 2017 
  U.S.
Telecom 
 International
Telecom

Renewable
Energy
Corporate
and Other *
Total 
  
        
 Net Income attributable to ATN International, Inc.
stockholders
    $  43,499  
 Net Income attributable to non-controlling interests,
net of tax
       3,871  
 Income tax benefit       (6,180) 
 Other (income) expense, net       (1,590) 
 Interest expense, net       1,920  
 Operating income$  10,798 $  36,356 $  1,910 $  (7,544)$  41,520  
 Depreciation and amortization   6,502    11,669    1,727    1,130    21,028  
 (Gain) loss on sale of assets   (507)   95    -     -     (412) 
 Loss on damaged assets and other hurricane
related charges, net of insurance recovery
   -     (32,610)   -     -     (32,610) 
 Restructuring charges   -     1,169    -     -     1,169  
 Transaction-related charges   -     109    -     14    123  
 Adjusted EBITDA $  16,793 $  16,788 $  3,637 $  (6,400)$  30,818  
        
        
        
        
 Three Months Ended December 31, 2016 
  U.S.
Telecom 
 International
Telecom

Renewable
Energy
Corporate
and Other *
Total 
  
        
 Net Income attributable to ATN International, Inc.
stockholders
    $  1,895  
 Net Income attributable to non-controlling interests,
net of tax
       1,713  
 Income tax expense       3,982  
 Other (income) expense, net       944  
 Interest expense, net       1,377  
 Operating income$  9,485 $  7,010 $  488 $  (7,072)$  9,911  
 Depreciation and amortization   6,961    13,116    1,345    1,645    23,067  
 Transaction-related charges   -     -     929    (806)   123  
 Adjusted EBITDA $  16,446 $  20,126 $  2,762 $  (6,233)$  33,101  
        
        
        
        
 *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments   
        
        
 Reconciliation of Net Income to Adjusted EBITDA for the Year Ended December 31, 2017 and 2016 
        
 Year Ended December 31, 2017 
  U.S.
Telecom 
 International
Telecom

Renewable
Energy
Corporate
and Other *
Total 
  
        
 Net Income attributable to ATN International, Inc.
stockholders
    $  31,488  
 Net Income attributable to non-controlling interests,
net of tax
       17,406  
 Income tax benefit       (1,341) 
 Loss on deconsolidation of subsidiary       529  
 Other expense, net       161  
 Interest expense, net       7,225  
 Operating income$  55,317 $  28,468 $  5,179 $  (33,496)$  55,468  
 Depreciation and amortization   25,601    50,007    6,668    4,658    86,934  
 (Gain) loss on sale of assets   131    (30)   -     -     101  
 Loss on damaged assets and other hurricane
related charges, net of insurance recovery
   -     3,956    -     -     3,956  
 Restructuring  charges   -     1,169    -     -     1,169  
 Transaction-related charges   -     286    -     723    1,009  
 Adjusted EBITDA $  81,049 $  83,856 $  11,847 $  (28,115)$  148,637  
        
        
        
        
 Year Ended December 31, 2016 
  U.S.
Telecom 
 International
Telecom

Renewable
Energy
Corporate
and Other *
Total 
  
        
 Net Income attributable to ATN International, Inc.
stockholders
    $  12,101  
 Net Income attributable to non-controlling interests,
net of tax
       12,113  
 Income tax expense       21,160  
 Other expense, net       300  
 Interest expense, net       4,123  
 Operating income$  49,078 $  35,436 $  (246)$  (34,471)$  49,797  
 Depreciation and amortization   24,471    40,492    4,987    6,030    75,980  
 Impairment of long-lived asset   11,076    349    -     -     11,425  
 Bargain purchase gain   -     (7,304)   -     -     (7,304) 
 (Gain) loss on sale of assets   -     27    -     -     27  
 Restructuring charges   -     1,785    -     -     1,785  
 Transaction-related charges   -     3,573    10,144    2,561    16,278  
 Adjusted EBITDA $  84,625 $  74,358 $  14,885 $  (25,880)$  147,988  
        
        
        
 *  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 December 31, 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$  41,520 $  43,499 $  2.71 
 Adjust for:  Loss on damaged assets and other
hurricane related charges, net of insurance recovery
   (32,610)   (32,610)   (2.03)
 Tax effect   -     69    0.00 
 
 Non-GAAP$  8,910 $  10,958 $  0.69 
   
     
     
 
 For the Year Ended December 31, 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$  55,468 $  31,488 $  1.94 
 Adjust for:  Loss on damaged assets and other
hurricane related charges, net of insurance recovery
   3,956    3,956    0.24 
 Tax effect   -     -     -  
     
 Non-GAAP $  59,424 $  35,444 $  2.18