ATN Reports Fourth Quarter and Full Year 2018 Results
Fourth Quarter Results
- International Telecom Operations Showed PositiveComparisons in Key Markets
- U.S. Telecom Comparisons Reflected Continued Effect of Lower Wholesale Revenue and Impact of Asset Sale, Expiration of certain Federal Subsidies, and Early Stage Business Expenses
Cash Flow from Operating Activities was
Business Review and Outlook
“Results for the fourth quarter were mixed, with our International Telecom operations performing well, and our U.S. Telecom operations managing through difficult market conditions,” noted
“Our International Telecom segment experienced strong revenue and Adjusted EBITDA1 growth, reflecting market share gains and progress in achieving operating efficiencies, and the slow but steady recovery of our
“As anticipated, the decline in fourth quarter Adjusted EBITDA1 for our U.S. Telecom segment from last year was more pronounced than in prior periods, with close to one-half of the reduction due to the sale of 100 wholesale sites, the end of FCC Mobility Fund I program subsidies, and higher expenses relating to our early stage business investments. The other factor causing the year-on-year Adjusted EBITDA1 decline was a further decrease in wholesale wireless revenue, which has led to lower segment margins over the last several quarters. In 2018, we reduced our domestic capital expenditures by 40% to improve returns, and we continue to discuss additional ways to utilize our network and operational capabilities with our large carrier customers. In
“While 2018 brought challenges for ATN, there were several accomplishments worth noting. We succeeded in producing a consolidated adjusted EBITDA margin2 of 28% for the full year despite the headwinds of re-building our network in the USVI and of adapting to lower returns in our domestic wireless business; we produced higher year-on-year revenue and expanded margins in all of our major International Telecom businesses, and completed multiple major network builds in those markets; we made two early stage greenfield infrastructure investments, that we believe offer significant growth potential; and, we completed an opportunistic sale of our U.S. solar operations, that enabled us to capture an attractive return on an investment we made four years earlier. Looking ahead, our priorities for 2019 include generating momentum behind one or more of our U.S. Telecom growth initiatives, accelerating the business recovery in the US Virgin Islands, and delivering an increase in total cash flow from our International Telecom segment,” Mr. Prior concluded.
Fourth Quarter and Full Year 2018 Financial Results
Fourth quarter 2018 revenues of
Revenues for the full year 2018 were
Fourth Quarter 2018 Operating Highlights
The Company has three reportable segments: (i) U.S. Telecom; (ii) International Telecom; and (iii) Renewable Energy.
Segment Results | ||||||||||
Three Months Ended December 31, 2018 (in Thousands) | ||||||||||
US Telecom | International Telecom |
Renewable Energy |
Corporate and Other |
Total | ||||||
Revenue | $ | 24,888 | $ | 78,033 | $ | 4,885 | $ | - | $ | 107,806 |
Adjusted EBITDA1 | $ | 6,467 | $ | 20,645 | $ | 2,948 | $ | (6,704) | $ | 23,356 |
Operating Income | $ | 973 | $ | 7,572 | $ | 9,753 | $ | (7,980) | $ | 10,318 |
Full Year Ended December 31, 2018 (in Thousands) | ||||||||||
Annual Capital Expenditures | $ | 13,389 | $ | 160,013 | $ | 4,515 | $ | 8,004 | $ | 185,921 |
Three Months Ended December 31, 2017 (in Thousands) | ||||||||||
US Telecom | International Telecom |
Renewable Energy |
Corporate and Other |
Total | ||||||
Revenue | $ | 34,844 | $ | 66,931 | $ | 5,927 | $ | - | $ | 107,702 |
Adjusted EBITDA1 | $ | 16,793 | $ | 16,748 | $ | 3,637 | $ | (6,400) | $ | 30,778 |
Operating Income | $ | 10,798 | $ | 36,316 | $ | 1,910 | $ | (7,544) | $ | 41,480 |
Full Year Ended December 31, 2017 (in Thousands) | ||||||||||
Annual Capital Expenditures | $ | 22,230 | $ | 80,912 | $ | 32,728 | $ | 6,501 | $ | 142,371 |
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
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
Balance Sheet and Cash Flow Highlights
Total cash 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; our growth opportunities; our priorities for 2019; 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; our future financial expectations; the estimated timeline for an increase in revenues from our customers in the
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has presented the following measures in this release and in the tables included herein: Adjusted EBITDA; Adjusted EBITDA margin; Operating Income excluding hurricane charges; Net income (loss) attributable to ATN’s stockholders excluding hurricane charges; and Net income (loss) per share attributable to ATN stockholders excluding hurricane charges.
Adjusted EBITDA is defined as net income attributable to ATN stockholders before (gain) loss on disposition 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.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Total revenue.
Operating Income excluding hurricane charges is defined as Operating Income (Loss) adjusted for loss on damaged assets and other hurricane related charges. Net income (loss) attributable to ATN stockholders excluding hurricane charges is defined as Net income (loss) attributable to ATN stockholders adjusted for loss on damaged assets and other hurricane related charges.
Net income (loss) per share attributable to ATN stockholders excluding hurricane charges is defined as net income (loss) per share attributable to ATN stockholders adjusted for loss on damaged assets and other hurricane related charges.
The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. ATN’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measure is set forth in the text of, and the accompanying tables to, this press release. While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
________________________
1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.
2 See Table 5 for reconciliation of Net Income Margin to Adjusted EBITDA Margin.
Table 1 | ||||||||
ATN International, Inc. | ||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||
(in Thousands) | ||||||||
December 31, | December 31, | |||||||
2018 | 2017 | |||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 191,836 | $ | 207,956 | ||||
Restricted cash | 1,071 | 833 | ||||||
Short-term investments | 393 | 7,076 | ||||||
Other current assets | 82,465 | 127,063 | ||||||
Total current assets | 275,765 | 342,928 | ||||||
Long-term restricted cash | - | 11,101 | ||||||
Property, plant and equipment, net | 626,852 | 643,146 | ||||||
Goodwill and other intangible assets, net | 166,979 | 171,656 | ||||||
Other assets | 37,708 | 36,774 | ||||||
Total assets | $ | 1,107,304 | $ | 1,205,605 | ||||
Liabilities and Stockholders’ Equity: | ||||||||
Current portion of long-term debt | $ | 4,688 | $ | 10,919 | ||||
Taxes payable | 28,695 | 6,751 | ||||||
Other current liabilities | 107,267 | 144,035 | ||||||
Total current liabilities | 140,650 | 161,705 | ||||||
Long-term debt, net of current portion | $ | 86,294 | $ | 144,873 | ||||
Deferred income taxes | 10,276 | 31,732 | ||||||
Other long-term liabilities | 46,760 | 37,072 | ||||||
Total long-term liabilities | 143,330 | 213,677 | ||||||
Total liabilities | 283,980 | 375,382 | ||||||
Total ATN International, Inc.’s stockholders’ equity | 695,387 | 688,727 | ||||||
Non-controlling interests | 127,937 | 141,496 | ||||||
Total equity | 823,324 | 830,223 | ||||||
Total liabilities and stockholders’ equity | $ | 1,107,304 | $ | 1,205,605 | ||||
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, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues: | ||||||||||||||||
Wireless | $ | 45,778 | $ | 56,725 | $ | 198,824 | $ | 232,501 | ||||||||
Wireline | 57,143 | 45,050 | 230,225 | 227,827 | ||||||||||||
Renewable energy | 4,885 | 5,927 | 22,158 | 20,865 | ||||||||||||
Total revenue | 107,806 | 107,702 | 451,207 | 481,193 | ||||||||||||
Operating expenses: | ||||||||||||||||
Termination and access fees | 30,441 | 26,146 | 114,478 | 120,624 | ||||||||||||
Engineering and operations | 18,292 | 16,733 | 73,031 | 74,614 | ||||||||||||
Sales, marketing and customer service | 9,238 | 9,008 | 35,207 | 35,184 | ||||||||||||
General and administrative | 26,479 | 25,037 | 104,267 | 102,294 | ||||||||||||
Transaction-related charges | 2,000 | 123 | 2,642 | 1,009 | ||||||||||||
Restructuring charges | 752 | 1,169 | 515 | 1,169 | ||||||||||||
Depreciation and amortization | 21,117 | 21,028 | 85,719 | 86,934 | ||||||||||||
(Gain) Loss on disposition of assets | (10,916) | (412) | (26,425) | 101 | ||||||||||||
Loss on damaged assets and other hurricane related | ||||||||||||||||
charges, net of insurance recovery | 85 | (32,610) | 750 | 3,956 | ||||||||||||
Total operating expenses | 97,488 | 66,222 | 390,184 | 425,885 | ||||||||||||
Operating income | 10,318 | 41,480 | 61,023 | 55,308 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (823) | (1,880) | (6,162) | (7,225) | ||||||||||||
Loss on deconsolidation of subsidiary | - | - | - | (529) | ||||||||||||
Other income (expense) | 1,841 | 1,590 | (1,119) | (1) | ||||||||||||
Other income (expense), net | 1,018 | (290) | (7,281) | (7,755) | ||||||||||||
Income before income taxes | 11,336 | 41,190 | 53,742 | 47,553 | ||||||||||||
Income tax expense (benefit) | 5,851 | (6,180) | 18,870 | (1,341) | ||||||||||||
Net Income | 5,485 | 47,370 | 34,872 | 48,894 | ||||||||||||
Net income attributable to non-controlling interests, net | (4,352) | (3,871) | (15,057) | (17,406) | ||||||||||||
Net Income attributable to ATN International, Inc. stockholders | $ | 1,133 | $ | 43,499 | $ | 19,815 | $ | 31,488 | ||||||||
Net income per weighted average share attributable to ATN International, Inc. stockholders: | ||||||||||||||||
Basic Net Income | $ | 0.07 | $ | 2.71 | $ | 1.24 | $ | 1.95 | ||||||||
Diluted Net Income | $ | 0.07 | $ | 2.71 | $ | 1.24 | $ | 1.94 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 15,981 | 16,023 | 15,988 | 16,138 | ||||||||||||
Diluted | 16,025 | 16,073 | 16,042 | 16,210 | ||||||||||||
Table 3 | |||||||
ATN International, Inc. | |||||||
Unaudited Condensed Consolidated Cash Flow Statement | |||||||
(in Thousands) | |||||||
Year Ended December 31, | |||||||
2018 | 2017 | ||||||
Net income | $ | 34,872 | $ | 48,894 | |||
Depreciation and amortization | 85,719 | 86,934 | |||||
Provision for doubtful accounts | 5,134 | 3,993 | |||||
(Gain) Loss on disposition of assets | (26,425) | 101 | |||||
Loss on deconsolidation of subsidiary | - | 529 | |||||
Stock-based compensation | 6,420 | 6,977 | |||||
Loss on damaged assets and other hurricane related charges | - | 35,443 | |||||
Insurance recovery related to hurricane claims | - | (34,606) | |||||
Loss in equity method investments | - | 2,033 | |||||
(Gain) loss on sale of investments | - | (826) | |||||
Deferred income taxes | (23,242) | (13,505) | |||||
Change in prepaid and accrued income taxes | 29,136 | (389) | |||||
Change in other operating assets and liabilities | 1,838 | 10,262 | |||||
Other non-cash activity | 2,413 | (115) | |||||
Net cash provided by operating activities | 115,865 | 145,725 | |||||
Capital expenditures | (105,769) | (133,786) | |||||
Hurricane rebuild capital expenditures | (80,152) | (8,585) | |||||
Hurricane insurance proceeds | 34,606 | - | |||||
Acquisition of businesses | - | (1,183) | |||||
Sales of businesses, net of transferred cash of $11.5 and $2.1 million | 48,270 | 22,381 | |||||
Purchases of spectrum licenses and other intangible assets, including deposits | - | (36,832) | |||||
Net proceeds from sale of assets | 6,900 | - | |||||
Strategic investments | (3,000) | (18,107) | |||||
Proceeds from sale of investments | - | 3,794 | |||||
Sale of short term investments | 6,564 | - | |||||
Purchase of securities | (138) | - | |||||
Government grants | 5,400 | - | |||||
Net cash used in investing activities | (87,319) | (172,318) | |||||
Dividends paid on common stock | (10,866) | (19,227) | |||||
Distributions to non-controlling interests | (18,780) | (6,858) | |||||
Principal repayments of term loan | (9,795) | (9,355) | |||||
Proceeds from new borrowings | - | 8,571 | |||||
Purchases of common stock | (6,198) | (12,855) | |||||
Repurchases of non-controlling interests | (9,663) | (2,025) | |||||
Other | 72 | (352) | |||||
Net cash used in financing activities | (55,230) | (42,101) | |||||
Effect of foreign currency exchange rates on total cash | (299) | 226 | |||||
Net change in total cash | (26,983) | (68,468) | |||||
Total cash, cash equivalents and restricted cash, beginning of period | 219,890 | 288,358 | |||||
Total cash, cash equivalents and restricted cash, end of period | $ | 192,907 | $ | 219,890 | |||
Table 4 | |||||||||||
ATN International, Inc. | |||||||||||
Selected Segment Financial Information | |||||||||||
(In Thousands) | |||||||||||
For the three months ended December 31, 2018 is as follows: | |||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||
Statement of Operations Data: | |||||||||||
Revenue | |||||||||||
Wireless | $ | 23,110 | $ | 22,668 | $ | - | $ | - | $ | 45,778 | |
Wireline | 1,778 | 55,365 | - | - | 57,143 | ||||||
Renewable Energy | - | - | 4,885 | - | 4,885 | ||||||
Total Revenue | $ | 24,888 | $ | 78,033 | $ | 4,885 | $ | - | $ | 107,806 | |
Operating Income (Loss) | $ | 973 | $ | 7,572 | $ | 9,753 | $ | (7,980) | $ | 10,318 | |
Non-controlling interest ( net income or (loss) ) | $ | (414) | $ | (2,544) | $ | (1,394) | $ - | $ | (4,352) | ||
Non GAAP measure: | |||||||||||
Adjusted EBITDA (1) | $ | 6,467 | $ | 20,645 | $ | 2,948 | $ | (6,704) | $ | 23,356 | |
Balance Sheet Data (at December 31, 2018): | |||||||||||
Cash, cash equivalents and investments | $ | 19,118 | $ | 32,390 | $ | 62,678 | $ | 78,043 | $ | 192,229 | |
Total current assets | 36,801 | 75,304 | 80,553 | 83,107 | 275,765 | ||||||
Fixed assets, net | 78,102 | 482,770 | 45,599 | 20,381 | 626,852 | ||||||
Total assets | 172,634 | 622,454 | 130,427 | 181,789 | 1,107,304 | ||||||
Total current liabilities | 15,783 | 82,575 | 3,465 | 38,827 | 140,650 | ||||||
Total debt | - | 90,970 | 12 | - | 90,982 | ||||||
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 | $ | 32,631 | $ | 24,094 | $ | - | $ | - | $ | 56,725 | |
Wireline | 2,213 | 42,837 | - | - | 45,050 | ||||||
Renewable Energy | - | - | 5,927 | - | 5,927 | ||||||
Total Revenue | $ | 34,844 | $ | 66,931 | $ | 5,927 | $ | - | $ | 107,702 | |
Operating Income (Loss) | $ | 10,798 | $ | 36,316 | $ | 1,910 | $ | (7,544) | $ | 41,480 | |
Non-controlling interest ( net income or (loss) ) | $ | (1,679) | $ | (1,902) | $ | (290) | $ - | $ | (3,871) | ||
Non GAAP measure: | |||||||||||
Adjusted EBITDA (1) | $ | 16,793 | $ | 16,748 | $ | 3,637 | $ | (6,400) | $ | 30,778 | |
Balance Sheet Data (at December 31, 2017): | |||||||||||
Cash, cash equivalents and investments | $ | 19,585 | $ | 110,700 | $ | 8,120 | $ | 76,627 | $ | 215,032 | |
Total current assets | 40,975 | 190,396 | 18,060 | 93,497 | 342,928 | ||||||
Fixed assets, net | 99,462 | 367,485 | 158,447 | 17,752 | 643,146 | ||||||
Total assets | 200,142 | 629,007 | 192,406 | 184,050 | 1,205,605 | ||||||
Total current liabilities | 41,248 | 91,887 | 14,754 | 13,816 | 161,705 | ||||||
Total debt | - | 94,577 | 61,215 | - | 155,792 | ||||||
(1) See Table 5 for reconciliation of Net Income to Adjusted EBITDA | |||||||||||
* 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, 2018 is as follows: | |||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||
Statement of Operations Data: | |||||||||||
Revenue | |||||||||||
Wireless | $ | 108,878 | $ | 89,946 | $ | - | $ | - | $ | 198,824 | |
Wireline | 6,602 | 223,623 | - | - | 230,225 | ||||||
Renewable Energy | - | - | 22,158 | - | 22,158 | ||||||
Total Revenue | $ | 115,480 | $ | 313,569 | $ | 22,158 | $ | - | $ | 451,207 | |
Operating Income (Loss) | $ | 36,813 | $ | 45,022 | $ | 13,440 | $ | (34,252) | $ | 61,023 | |
Non-controlling interest ( net income or (loss) ) | $ | (3,183) | $ | (9,753) | $ | (2,121) | $ - | $ | (15,057) | ||
Non GAAP measure: | |||||||||||
Adjusted EBITDA (1) | $ | 44,676 | $ | 94,463 | $ | 13,639 | $ | (28,554) | $ | 124,224 | |
Statement of Cash Flow Data: | |||||||||||
Capital expenditures | $ | 13,389 | $ | 160,013 | $ | 4,515 | $ | 8,004 | $ | 185,921 | |
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 | $ | 143,028 | $ | 89,473 | $ | - | $ | - | $ | 232,501 | |
Wireline | 12,695 | 215,132 | - | - | 227,827 | ||||||
Renewable Energy | - | - | 20,865 | - | 20,865 | ||||||
Total Revenue | $ | 155,723 | $ | 304,605 | $ | 20,865 | $ | - | $ | 481,193 | |
Operating Income (Loss) | $ | 55,317 | $ | 28,308 | $ | 5,179 | $ | (33,496) | $ | 55,308 | |
Non-controlling interest ( net income or (loss) ) | $ | (7,100) | $ | (9,178) | $ | (1,128) | $ | - | $ | (17,406) | |
Non GAAP measure: | |||||||||||
Adjusted EBITDA (1) | $ | 81,049 | $ | 83,696 | $ | 11,847 | $ | (28,115) | $ | 148,477 | |
Statement of Cash Flow Data: | |||||||||||
Capital expenditures | $ | 22,230 | $ | 80,912 | $ | 32,728 | $ | 6,501 | $ | 142,371 | |
(1) See Table 5 for reconciliation of Net Income to Adjusted EBITDA | |||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||
ATN International, Inc. | |||||||||||
Selected Segment Financial Information | |||||||||||
(In Thousands) | |||||||||||
Quarter ended | |||||||||||
December 31, | March 31, | June 30, | September 30, | December 31, | |||||||
2017 | 2018 | 2018 | 2018 | 2018 | |||||||
U.S. Telecom Operational Data: | |||||||||||
Wireless - Total Domestic Base Stations | 1,100 | 1,122 | 1,121 | 1,035 | 1,045 | ||||||
International Telecom Operational Data: | |||||||||||
Wireline - Voice / Access lines* | 162,600 | 165,100 | 167,900 | 170,400 | 171,100 | ||||||
Wireline - Data Subscribers* | 109,600 | 112,000 | 114,900 | 116,800 | 119,800 | ||||||
Wireline - Video Subscribers | 47,300 | 46,200 | 45,000 | 43,600 | 41,700 | ||||||
Wireless - Subscribers* | 308,100 | 310,000 | 308,700 | 300,500 | 300,400 | ||||||
* Subscriber counts were adjusted for all periods presented based upon a change in methodology | |||||||||||
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, 2018 and 2017 | |||||||||||||||
Three Months Ended December 31, 2018 | |||||||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total |
|||||||||||
Net income attributable to ATN International, Inc. stockholders | $ | 1,133 | |||||||||||||
Net income attributable to non-controlling interests, net of tax | 4,352 | ||||||||||||||
Income tax expense | 5,851 | ||||||||||||||
Other (income) expense, net | (1,841) | ||||||||||||||
Interest expense, net | 823 | ||||||||||||||
Operating income | $ | 973 | $ | 7,572 | $ | 9,753 | $ | (7,980) | $ | 10,318 | |||||
Depreciation and amortization | 5,602 | 12,983 | 1,097 | 1,435 | 21,117 | ||||||||||
Restructuring charges | - | - | 752 | - | 752 | ||||||||||
(Gain) Loss on disposition of assets | (134) | 5 | (10,787) | - | (10,916) | ||||||||||
Loss on damaged assets and other hurricane related charges , net of insurance recovery | - | 85 | - | - | 85 | ||||||||||
Transaction-related charges | 26 | - | 2,133 | (159) | 2,000 | ||||||||||
Adjusted EBITDA | $ | 6,467 | $ | 20,645 | $ | 2,948 | $ | (6,704) | $ | 23,356 | |||||
Three Months Ended December 31, 2017 |
|||||||||||||||
U.S. Telecom |
|
Corporate and Other * |
Total |
||||||||||||
International Telecom |
Renewable Energy |
||||||||||||||
Net Income (loss) 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 expense, net | (1,590) | ||||||||||||||
Interest expense, net | 1,880 | ||||||||||||||
Operating income | $ | 10,798 | $ | 36,316 | $ | 1,910 | $ | (7,544) | $ | 41,480 | |||||
Depreciation and amortization | 6,502 | 11,669 | 1,727 | 1,130 | 21,028 | ||||||||||
(Gain) Loss on disposition 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 | $ | 16,748 | $ | 3,637 | $ | (6,400) | $ | 30,778 | |||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA For the Year Ended December 31, 2018 and 2017 and Net Income Margin to Adjusted EBITDA Margin for the Year Ended December 31, 2018 | |||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA |
Reconciliation of Net Income Margin to Adjusted EBITDA Margin |
||||||||||||||
U.S. Telecom |
Renewable Energy |
Corporate and Other * |
Total |
||||||||||||
International Telecom |
Total | ||||||||||||||
Total revenue | $ | 451,207 | |||||||||||||
Net income attributable to ATN International, Inc. stockholders | $ | 19,815 | Net income margin | 4% | |||||||||||
Net income attributable to non-controlling interests, net of tax | 15,057 | 3% | |||||||||||||
Income tax expense | 18,870 | 4% | |||||||||||||
Other (income) expense, net | 1,119 | 0% | |||||||||||||
Interest expense, net | 6,162 | 1% | |||||||||||||
Operating income | $ | 36,813 | $ | 45,022 | $ | 13,440 | $ | (34,252) | $ | 61,023 | Operating income margin | 14% | |||
Depreciation and amortization | 24,615 | 48,889 | 6,589 | 5,625 | 85,718 | 19% | |||||||||
Restructuring charges | - | (236) | 752 | - | 516 | 0% | |||||||||
(Gain) Loss on disposition of assets | (17,188) | 38 | (9,275) | - | (26,425) | -6% | |||||||||
Loss on damaged assets and other hurricane related charges , net of insurance recovery | - | 750 | - | - | 750 | 0% | |||||||||
Transaction-related charges | 436 | - | 2,133 | 73 | 2,642 | 1% | |||||||||
Adjusted EBITDA | $ | 44,676 | $ | 94,463 | $ | 13,639 | $ | (28,554) | $ | 124,224 | Adjusted EBITDA margin | 28% | |||
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 expense | (1,341) | ||||||||||||||
Other expense, net | 1 | ||||||||||||||
Loss on deconsolidation of subsidiary | 529 | ||||||||||||||
Interest expense, net | 7,225 | ||||||||||||||
Operating income | $ | 55,317 | $ | 28,308 | $ | 5,179 | $ | (33,496) | $ | 55,308 | |||||
Depreciation and amortization | 25,601 | 50,007 | 6,668 | 4,658 | 86,934 | ||||||||||
(Gain) Loss on disposition 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 | $ | 83,696 | $ | 11,847 | $ | (28,115) | $ | 148,477 | |||||
* 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, Net Income (Loss) attributable to ATN stockholders to Net Income (Loss) attributable to ATN stockholders excluding hurricane charges and Net Income (Loss) per share attributable to ATN stockholders to Net Income (Loss) per share attributable to ATN stockholders excluding hurricane charges | |||||||
For the Three Months Ended December 31, 2018 is as follows: | |||||||
Operating Income (Loss) | Net Income (Loss) Attributable to ATN Stockholders |
Net Income (Loss) per share Attributable to ATN Stockholders |
|||||
GAAP - As reported | $ | 10,318 | $ | 1,133 | $ | 0.07 | |
Adjust for: Loss on damaged assets and other hurricane related charges, net of insurance recovery | 85 | 85 | 0.01 | ||||
Tax effect | - | - | - | ||||
Non-GAAP | $ | 10,403 | $ | 1,218 | $ | 0.08 | |
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 | $ | 41,480 | $ | 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 | $ | 8,870 | $ | 10,958 | $ | 0.69 | |
For the Year Ended December 31, 2018 is as follows: | |||||||
Operating Income (Loss) |
Net Income (Loss) Attributable to ATN Stockholders |
Net Income (Loss) per share Attributable to ATN Stockholders |
|||||
GAAP - As reported | $ | 61,023 | $ | 19,815 | $ | 1.24 | |
Adjust for: Loss on damaged assets and other hurricane related charges, net of insurance recovery | 750 | 750 | 0.05 | ||||
Tax effect | - | - | - | ||||
Non-GAAP | $ | 61,773 | $ | 20,565 | $ | 1.29 | |
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 | $ | 55,308 | $ | 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 | - | - | 0.00 | ||||
Non-GAAP | $ | 59,264 | $ | 35,444 | $ | 2.19 | |
Contact:
978-619-1300
Chairman and
Chief Executive Officer
Chief Financial Officer
Source: ATN International, Inc.