ATN Reports First Quarter 2015 Results
First Quarter 2015 Highlights:
-
Revenues increased 14% to
$85.3 million -
Adjusted EBITDA1 was
$35.3 million , up 20% -
Operating income was
$19.2 million , up 18% -
Net loss attributable to ATN's stockholders was
$3.3 million , or$0.21 per share, inclusive of a$19.9 million loss on the deconsolidation of the Company's holdings in Turks and Caicos -
Exclusive of the one-time loss on the deconsolidation, net income attributable to ATN's stockholders2 was
$9.6 million , or$0.60 per diluted share -
Cash flow from operating activities was
$35.5 million
First Quarter 2015 Results
"First quarter operating performance represented a good start to 2015. We posted strong year-on-year revenue growth driven by our U.S. wireless business and the addition of the first full quarter of operating results from our renewable energy acquisition, completed late last year. These increases more than offset declines in our International Integrated Telephony segment and flat to modestly lower year-on-year comparisons in our wireline and international wireless businesses," noted
"U.S. wireless revenues increased 26%, thanks in large part to the capital investments we have made over the last two years adding capacity, coverage and advanced technologies to our rural wireless network. In 2014 alone, we added nearly 175 base stations and approximately 115 new sites, and upgraded more than 75 sites to more advanced mobile data technologies. As previously reported, we have adjusted prices in order to keep overall costs reasonable for our carrier customers as data traffic volumes have surged. While the decline in wholesale rates is expected to more than offset the usage growth on existing sites this year, we will gain the benefit of lower risk and longer-term returns.
"Continued solid performance in
"The
First quarter revenues were
First Quarter 2015 Operating Highlights
U.S. wireless revenues primarily consist of voice and data revenues from the Company's wholesale roaming operations. Total revenues from the U.S. wireless business were
International wireless revenues include retail and wholesale voice and data wireless revenues from operations in
During the first quarter of 2015, the Company sold its holdings in Turks and Caicos. As a result of this sale, we recorded a loss of
Wireline
Wireline revenues are generated by the Company's wireline operations in
Renewable Energy
Renewable energy revenues are generated by our 28 commercial solar projects operating at 59 sites in select locations in
Reportable Operating Segments
The Company has five reportable segments: (i)
For the three months ended |
|||||||
|
International Integrated Telephony |
|
U.S. Wireline |
Renewable Energy |
Reconciling Items 3 |
Total |
|
Total Revenue | $ 36,479 | $ 21,108 | $ 16,566 | $ 5,896 | $ 5,289 | $ -- | $ 85,338 |
Adjusted EBITDA | 22,057 | 8,132 | 4,958 | 221 | 4,098 | (4,161) | 35,305 |
Operating Income (Loss) | 17,910 | 3,766 | 2,413 | (1,135) | 2,652 | (6,455) | 19,151 |
For the three months ended |
|||||||
|
International Integrated Telephony |
|
U.S. Wireline |
Renewable Energy |
Reconciling Items 3 |
Total |
|
Total Revenue | $ 28,723 | $ 21,797 | $ 17,923 | $ 6,731 | n/a | $ -- | $ 75,174 |
Adjusted EBITDA | 16,892 | 9,948 | 6,034 | 66 | n/a | (3,633) | 29,307 |
Operating Income (Loss) | 13,589 | 5,635 | 3,426 | (1,074) | n/a | (5,328) | 16,248 |
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents at
Conference Call Information
ATN will host a conference call on
About ATN
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
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, stock-based compensation, transaction-related charges, gain on disposition of long-lived assets, other income or expense, unrealized loss on interest rate swap contracts 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.
Table 1 | ||
|
||
Unaudited Condensed Consolidated Balance Sheets | ||
(in Thousands) | ||
|
|
|
2015 | 2014 | |
Assets: | ||
Cash and cash equivalents | $ 380,333 | $ 326,216 |
Restricted cash | 780 | 39,703 |
Assets of discontinued operations | 44 | 175 |
Other current assets | 77,839 | 85,280 |
Total current assets | 458,996 | 451,374 |
Long-term restricted cash | 4,763 | 5,475 |
Property, plant and equipment, net | 363,387 | 369,582 |
Goodwill and other intangible assets, net | 90,807 | 91,080 |
Other assets | 6,830 | 7,519 |
Total assets | $ 924,783 | $ 925,030 |
Liabilities and Stockholders' Equity: | ||
Current portion of long-term debt | $ 6,150 | $ 6,083 |
Income taxes payable | 855 | 5,667 |
Liabilities of discontinued operations | 1,316 | 1,247 |
Other current liabilities | 76,774 | 91,072 |
Total current liabilities | 85,095 | 104,069 |
Long-term debt, net of current portion | $ 31,244 | $ 32,794 |
Deferred income taxes | 30,366 | 30,366 |
Other long-term liabilities | 28,096 | 19,619 |
Total long-term liabilities | 89,706 | 82,779 |
Total liabilities | 174,801 | 186,848 |
|
669,298 | 677,222 |
Non-controlling interests | 80,684 | 60,960 |
Total equity | 749,982 | 738,182 |
Total liabilities and stockholders' equity | $ 924,783 | $ 925,030 |
Table 2 | ||
|
||
Unaudited Condensed Consolidated Statements of Operations | ||
(in Thousands, Except per Share Data) | ||
Three Months Ended | ||
|
||
2015 | 2014 | |
Revenues: | ||
U.S. wireless | $ 35,843 | $ 28,392 |
International wireless | 21,172 | 23,148 |
Wireline | 20,593 | 21,530 |
Renewable energy | 5,289 | -- |
Equipment and other | 2,441 | 2,104 |
Total revenue | 85,338 | 75,174 |
Operating expenses: | ||
Termination and access fees | 16,035 | 15,862 |
Engineering and operations | 10,418 | 9,630 |
Sales, marketing and customer service | 5,236 | 5,020 |
Equipment expense | 3,821 | 2,715 |
General and administrative | 15,747 | 13,698 |
Transaction-related charges | 179 | 21 |
Depreciation and amortization | 14,751 | 11,980 |
Total operating expenses | 66,187 | 58,926 |
Operating income | 19,151 | 16,248 |
Other income (expense): | ||
Interest expense, net | (614) | (186) |
Loss on deconsolidation of subsidiary | (19,937) | -- |
Other income (expense) | 32 | (109) |
Other income (expense), net | (20,519) | (295) |
Income (Loss) from continuing operations before income taxes | (1,368) | 15,953 |
Income tax expense (benefit) | (486) | 5,552 |
Net income (loss) from continuing operations | (882) | 10,401 |
Income from discontinued operations, net of tax | 390 | -- |
Net income (loss) | (492) | 10,401 |
Net income attributable to non-controlling interests, net of tax | (2,777) | (2,560) |
Net income (loss) attributable to |
$ (3,269) | $ 7,841 |
Basic net income (loss) per weighted average share attributable to |
||
Income (Loss) from continuing operations | $ (0.23) | $ 0.50 |
Income from discontinued operations | 0.02 | -- |
Net income (loss) | $ (0.21) | $ 0.50 |
Diluted net income (loss) per weighted average share attributable to |
||
Income (Loss) from continuing operations | $ (0.23) | $ 0.49 |
Income from discontinued operations | 0.02 | -- |
Net income (loss) | $ (0.21) | $ 0.49 |
Weighted average common shares outstanding: | ||
Basic | 15,939 | 15,830 |
Diluted | 15,939 | 15,950 |
Table 3 | ||
|
||
Unaudited Condensed Consolidated Cash Flow Statement | ||
(in Thousands) | ||
Three Months Ended |
||
2015 | 2014 | |
Net income (loss) | $ (492) | $ 10,401 |
Depreciation and amortization | 14,751 | 11,980 |
Loss on deconsolidation of subsidiary | 19,937 | -- |
Change in prepaid and accrued income taxes | 5,952 | (23,128) |
Change in other operating assets and liabilities | (6,546) | (7,855) |
Other | 1,653 | 1,996 |
Net cash provided by (used in) operating activities of continuing operations | 35,255 | (6,606) |
Net cash provided by (used in) operating activities of discontinued operations | 199 | (2,429) |
Net cash provided by (used in) operating activities | 35,454 | (9,035) |
Capital expenditures | (13,812) | (8,736) |
Acquisition of business | (2,600) | -- |
Net proceeds from sale of assets | 5,873 | 1,371 |
Change in restricted cash | 39,635 | 19,204 |
Net cash provided by investing activities of continuing operations | 29,096 | 11,839 |
Dividends paid on common stock | (4,618) | (4,278) |
Distributions to non-controlling interests | (3,066) | (1,482) |
Other | (2,749) | (825) |
Net cash used in financing activities of discontinued operations | (10,433) | (6,585) |
Net change in cash and cash equivalents | 54,117 | (3,781) |
Cash and cash equivalents, beginning of period | 326,216 | 356,607 |
Cash and cash equivalents, end of period | $ 380,333 | $ 352,826 |
Cash paid for income taxes | $ 3,801 | $ 32,923 |
Table 4 | |||||||
|
|||||||
Reconciliation of Non-GAAP Measures | |||||||
(In Thousands) | |||||||
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended |
|||||||
Three Months Ended |
|||||||
U. |
International Integrated Telephony |
Island Wireless |
U.S. Wireline |
Renewable Energy |
Reconciling Items |
Total |
|
Net income attributable to |
$ 7,841 | ||||||
Net income attributable to non-controlling interests, net of tax | 2,560 | ||||||
Income tax expense | 5,552 | ||||||
Other income | 109 | ||||||
Interest expense, net | 186 | ||||||
Operating income (loss) | $ 13,589 | $ 5,635 | $ 3,426 | $ (1,074) | $ -- | $ (5,328) |
|
Depreciation and amortization | 3,303 | 4,313 | 2,608 | 1,140 | -- | 616 | 11,980 |
Stock based compensation | 1,058 | 1,058 | |||||
Transaction-related charges | -- | 21 | 21 | ||||
Adjusted EBITDA | $ 16,892 | $ 9,948 | $ 6,034 | $ 66 | $ -- | $ (3,633) |
|
Three Months Ended |
|||||||
U. |
International Integrated Telephony |
Island Wireless |
U.S. Wireline |
Renewable Energy |
Reconciling Items |
Total |
|
Net loss attributable to |
$ (3,269) | ||||||
Net income attributable to non-controlling interests, net of tax | 2,777 | ||||||
Income tax benefit | (486) | ||||||
Other (income) | (32) | ||||||
Income from discontinued operations, net of tax | (390) | ||||||
Loss on deconsolidation of subsidiary | 19,937 | ||||||
Interest expense, net | 614 | ||||||
Operating income (loss) | $ 17,910 | $ 3,766 | $ 2,413 | $ (1,135) | $ 2,652 | $ (6,455) |
|
Depreciation and amortization | 4,147 | 4,366 | 2,545 | 1,356 | 1,204 | 1,133 | 14,751 |
Stock based compensation | 181 | 1,043 | 1,224 | ||||
Transaction-related charges | 61 | 118 | 179 | ||||
Adjusted EBITDA | $ 22,057 | $ 8,132 | $ 4,958 | $ 221 | $ 4,098 | $ (4,161) |
|
Table 5 | |
|
|
Reconciliation of Non-GAAP Measures | |
(In Thousands) | |
Reconciliation of Net Income (Loss) Attributable to |
|
Three Months Ended |
|
Total | |
Net income (loss) attributable to |
$ 7,841 |
Adjustments: None | -- |
Net income (loss) attributable to |
$ 7,841 |
Diluted net income (loss) per weighted average share attributable to |
$ 0.49 |
Adjustments: None | -- |
Diluted net income (loss) per weighted average share attributable to |
$ 0.49 |
Three Months Ended |
|
Total | |
Net income loss attributable to |
$ (3,269) |
Loss on deconsolidation of subsidiary | 19,937 |
Income tax expense adjustment | (7,022) |
Net income attributable to |
$ 9,646 |
Diluted net loss per weighted average share attributable to |
$ (0.21) |
Adjustment for loss on deconsolidation, change in income tax expense and use of 16,068 of diluted shares | 0.81 |
Diluted net income (loss) per weighted average share attributable to |
$ 0.60 |
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.
3 Reconciling items are comprised of corporate general and administrative costs and transaction-related charges
CONTACT:Source:Michael T. Prior Chief Executive Officer 978-619-1300Justin D. Benincasa Chief Financial Officer 978-619-1300
News Provided by Acquire Media