ATN Reports Fourth Quarter and Full Year 2021 Results and Provides Financial Outlook
Fourth Quarter 2021 Results
- Revenues increased by 52% to
$187.6 million from$123.7 million a year ago, primarily due to the successful acquisition ofAlaska Communications . - Net loss, including a one-time
$20.6 million goodwill impairment charge, was$24.2 million versus$20.5 million a year ago. - EBITDA1 increased to
$17.2 million from$7.5 million a year ago. - Adjusted EBITDA2 increased to
$42.3 million from$30.5 million a year ago. - Capital expenditures were
$35.2 million . - Total cash, cash equivalents and restricted cash was
$80.7 million as ofDecember 31, 2021 .
“We delivered a strong quarter marked by execution on strategic objectives aligned with our long-term growth plans,” said
“Our expansion in
“Our international operations remained resilient with double-digit year-over-year mobility and carrier services revenue growth. In addition, our broadband subscriber levels continued to show strength with year-over-year growth and low churn. Our strategic decision to increase our investments in marketing and network resources resulted in heightened operating expense levels for this segment in the quarter. By maintaining our leadership in mature markets through strong services and continued speed improvements, we are generating steady cash flows and using these proceeds to invest in higher-growth markets, such as
Fourth Quarter 2021 Financial Results
Fourth quarter 2021 consolidated revenues were
Fourth Quarter 2021 Operating Segment Results
The Company recorded financial results during the fourth quarter of 2021 in three categories: (i)
Operating Results (in Thousands)
For Three Months Ended |
||||||||||||||||||||||||
2021 | 2020 |
2021 | 2020 |
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
International | International | US | US | Total | Total | |||||||||||||||||||
Telecom | Telecom | Telecom | Telecom | All Other* | All Other* | ATN | ATN | |||||||||||||||||
Revenue | $ | 87,518 | $ | 83,819 | $ | 100,053 | $ | 38,700 | $ | - | $ | 1,182 | $ | 187,571 | $ | 123,701 | ||||||||
Operating Income (Loss) | $ | (7,100 | ) | $ | 14,806 | $ | (3,096 | ) | $ | 1,824 | $ | (10,101 | ) | $ | (31,330 | ) | $ | (20,297 | ) | $ | (14,700 | ) | ||
EBITDA1 | $ | 7,064 | $ | 28,972 | $ | 18,975 | $ | 7,818 | $ | (8,847 | ) | $ | (29,268 | ) | $ | 17,192 | $ | 7,522 | ||||||
Adjusted EBITDA2 | $ | 27,931 | $ | 28,960 | $ | 22,292 | $ | 7,793 | $ | (7,893 | ) | $ | (6,225 | ) | $ | 42,330 | $ | 30,528 | ||||||
Capital Expenditures** | $ | 17,500 | $ | 10,456 | $ | 17,078 | $ | 12,629 | $ | 642 | $ | 1,576 | $ | 35,220 | $ | 24,661 | ||||||||
For The Year Ended |
||||||||||||||||||||||||
2021 | 2020 |
2021 | 2020 |
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
International | International | US | US | Total | Total | |||||||||||||||||||
Telecom | Telecom | Telecom | Telecom | All Other* | All Other* | ATN | ATN | |||||||||||||||||
Revenue | $ | 342,859 | $ | 328,633 | $ | 259,431 | $ | 122,256 | $ | 417 | $ | 4,555 | $ | 602,707 | $ | 455,444 | ||||||||
Operating Income (Loss) | $ | 33,899 | $ | 58,924 | $ | (14,016 | ) | $ | 7,971 | $ | (34,908 | ) | $ | (57,715 | ) | $ | (15,025 | ) | $ | 9,180 | ||||
EBITDA1 | $ | 89,405 | $ | 115,208 | $ | 35,715 | $ | 31,296 | $ | (29,639 | ) | $ | (49,013 | ) | $ | 95,481 | $ | 97,491 | ||||||
Adjusted EBITDA2 | $ | 110,207 | $ | 115,210 | $ | 47,888 | $ | 31,272 | $ | (29,048 | ) | $ | (25,778 | ) | $ | 129,047 | $ | 120,704 | ||||||
Capital Expenditures** | $ | 49,985 | $ | 38,895 | $ | 53,235 | $ | 29,883 | $ | 2,922 | $ | 6,545 | $ | 106,142 | $ | 75,323 |
*For this table presentation, the Renewable Energy segment results and Corporate and Other segment results were combined. See table 4 for the separate presentation of the financial performance of these segments.
**Includes capital expenditures reimbursable from customers of
By the end of the fourth quarter of 2021, the Company had completed and activated approximately 60% of the total sites related to the network build portion of its long-term FirstNet Agreement. The completion of sites was slightly slower than expected due to delays relating to supply chain and the continuation of the pandemic. The Company expects to complete an additional 30% of the total build by the end of 2022 and that revenues from the build will be largely offset by construction costs incurred in the same period.
Balance Sheet and Cash Flow Highlights
As of
Net cash provided by operating activities was
Stock Buybacks and Quarterly Dividends
On
Business Outlook
“Looking forward, we plan to fully leverage our differentiated approach to connect more people around the world,” Prior continued. “This will include an increased level of investment in our fiber networks and other digital infrastructure across our
“Additionally, we are providing the following full-year 2022 guidance and three-year outlook to give investors a better sense of the evolution and potential of our business. These forecasts take into account the current state of our domestic and international markets as well as certain strategic initiatives. From a broad perspective, our goal as an organization is to continue leaning into servicing remote and rural markets to better satisfy the growing demand for enhanced digital infrastructure around the world. We have confidence in our strategy and team to execute on these plans going forward, and in our ability to accelerate our business momentum and deliver enhanced shareholder value,”
2022 Guidance
The Company has provided the following estimates on its expectations for 2022 financial performance:
- Significant revenue and Adjusted EBITDA growth, which includes a full year of
Alaska Communications business results, compared with the full year of 2021; - Adjusted EBITDA for the first quarter of 2022 down slightly from Adjusted EBITDA of
$42.3 million in the fourth quarter of 2021; - Adjusted EBITDA in the range of
$165 -$170 million for the full year; and - Capital expenditures for the full year in the range of
$150 -$160 million , net of reimbursed amounts, with the largest amounts projected to be used for network expansion and upgrades.
Three Year Outlook
The Company has set the following targets for its business to be achieved in 2024. These goals are largely based on, and in line with, the Company’s continuing investments in its “fiber-first” platform strategy. The three-year targets are as follows:
- Revenue compound annual growth rate (“CAGR”), excluding construction, of 4-6%, leading to revenue of
$770 -$810 million in 2024; - Adjusted EBITDA CAGR of 8%-10% over the three-year period;
- Capital expenditures return to more normalized levels of 10-15% of revenue after the three-year period; and
- Net Debt Ratio5 of less than 1.5x by the end of 2024.
Upon completion of this three-year plan, and possibly sooner, the Company believes it will be in a position to use its business momentum and growing operating cash flow to return more value to shareholders through increased dividends or other means. The Company will provide updates to the market on these initiatives from time to time as it progresses going forward.
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, the Company’s future financial performance, business goals and objectives, and results of operations, expectations regarding the transition of its
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, the Company has included EBITDA, Adjusted EBITDA and Net Debt Ratio in this release and in the tables included herein.
EBITDA is defined as operating income (loss) before depreciation and amortization expense. The Company has defined Adjusted EBITDA as operating income (loss) before depreciation and amortization expense, transaction-related charges, one-time impairment or special charges and the gain (loss) on disposition of assets. Net Debt Ratio is defined as total debt less cash and cash equivalents divided by Adjusted EBITDA. The Company believes that the inclusion of these non-GAAP financial measures help investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. Management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s 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 to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release. While non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating the Company’s own operating results over different periods of time, the Company urges 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 its business.
Contact:
Chief Financial Officer
978-619-1300
Investor Relations
ATNI@investorrelations.com
Table 1 | |||||||
Unaudited Condensed Consolidated Balance Sheets | |||||||
(in Thousands) | |||||||
2021 | 2020 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 79,601 | $ | 103,925 | |||
Restricted cash | 1,096 | 1,072 | |||||
Assets held-for-sale | - | 34,735 | |||||
Customer receivable | 4,145 | 1,227 | |||||
Other current assets | 147,775 | 99,106 | |||||
Total current assets | 232,617 | 240,065 | |||||
Property, plant and equipment, net | 943,209 | 536,462 | |||||
Operating lease right-of-use assets | 118,843 | 63,235 | |||||
Customer receivable - long term | 39,652 | 9,614 | |||||
198,164 | 181,769 | ||||||
Other assets | 76,119 | 52,566 | |||||
Total assets | $ | 1,608,604 | $ | 1,083,711 | |||
Liabilities, Redeemable Non-controlling interests and Stockholders’ Equity: | |||||||
Current portion of long-term debt | $ | 4,665 | $ | 3,750 | |||
Current portion of customer receivable credit facility | 4,620 | - | |||||
Taxes payable | 5,681 | 7,501 | |||||
Current portion of lease liabilities | 16,201 | 12,371 | |||||
Liabilities held-for-sale | - | 717 | |||||
Other current liabilities | 189,777 | 123,589 | |||||
Total current liabilities | 220,944 | 147,928 | |||||
Long-term debt, net of current portion | $ | 327,111 | $ | 69,073 | |||
Customer receivable credit facility, net of current portion | 30,148 | - | |||||
Deferred income taxes | 21,460 | 10,675 | |||||
Lease liabilities | 91,719 | 51,082 | |||||
Other long-term liabilities | 142,033 | 50,617 | |||||
Total liabilities | 833,415 | 329,375 | |||||
Redeemable Non-controlling interests | 72,936 | - | |||||
Stockholders' Equity | |||||||
Total ATN International, Inc.’s stockholders’ equity | 601,250 | 645,649 | |||||
Non-controlling interests | 101,003 | 108,687 | |||||
Total stockholders' equity | 702,253 | 754,336 | |||||
Total liabilities, Redeemable Non-controlling interests and stockholders’ equity | $ | 1,608,604 | $ | 1,083,711 |
Table 2 | |||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||
(in Thousands, Except per Share Data) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | |||||||||||||||
Communications services | $ | 170,722 | $ | 110,644 | $ | 549,620 | $ | 433,509 | |||||||
Construction | 7,840 | 10,519 | 35,889 | 10,913 | |||||||||||
Other | 9,009 | 2,538 | 17,198 | 11,022 | |||||||||||
Total revenue | 187,571 | 123,701 | 602,707 | 455,444 | |||||||||||
Operating expenses (excluding depreciation and amortization unless otherwise indicated): | |||||||||||||||
Cost of services and other | 80,605 | 47,567 | 249,322 | 185,113 | |||||||||||
Cost of construction revenue | 8,058 | 10,226 | 36,055 | 10,616 | |||||||||||
Selling, general and administrative | 56,578 | 35,380 | 188,283 | 139,011 | |||||||||||
Transaction-related charges | 2,398 | 1,494 | 10,221 | 1,641 | |||||||||||
Depreciation | 34,109 | 21,799 | 102,731 | 86,504 | |||||||||||
Amortization of intangibles from acquisitions | 3,380 | 423 | 7,775 | 1,807 | |||||||||||
20,586 | - | 20,586 | - | ||||||||||||
Loss on disposition of assets and assets held-for-sale | 2,154 | 21,512 | 2,759 | 21,572 | |||||||||||
Total operating expenses | 207,868 | 138,401 | 617,732 | 446,264 | |||||||||||
Operating income (loss) | (20,297 | ) | (14,700 | ) | (15,025 | ) | 9,180 | ||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (3,841 | ) | (1,262 | ) | (9,482 | ) | (4,926 | ) | |||||||
Other income (expense) | (103 | ) | 181 | 1,820 | (4,161 | ) | |||||||||
Other income (expense), net | (3,944 | ) | (1,081 | ) | (7,662 | ) | (9,087 | ) | |||||||
Income (loss) before income taxes | (24,241 | ) | (15,781 | ) | (22,687 | ) | 93 | ||||||||
Income tax expense (benefit) | (343 | ) | 1,858 | (1,878 | ) | 801 | |||||||||
Net loss | (23,898 | ) | (17,639 | ) | (20,809 | ) | (708 | ) | |||||||
Net income attributable to non-controlling interests, net | (313 | ) | (2,876 | ) | (1,299 | ) | (13,414 | ) | |||||||
Net loss attributable to |
$ | (24,211 | ) | $ | (20,515 | ) | $ | (22,108 | ) | $ | (14,122 | ) | |||
Net loss per weighted average share attributable to |
|||||||||||||||
Basic Net Income | $ | (1.60 | ) | $ | (1.29 | ) | $ | (1.52 | ) | $ | (0.89 | ) | |||
Diluted Net Income | $ | (1.60 | ) | $ | (1.29 | ) | $ | (1.52 | ) | $ | (0.89 | ) | |||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 15,796 | 15,898 | 15,867 | 15,923 | |||||||||||
Diluted | 15,796 | 15,898 | 15,867 | 15,923 |
Table 3 | |||||||
Unaudited Condensed Consolidated Cash Flow Statement | |||||||
(in Thousands) | |||||||
Year Ended |
|||||||
2021 | 2020 | ||||||
Net income (loss) | $ | (20,809 | ) | $ | (708 | ) | |
Depreciation | 102,731 | 86,504 | |||||
Amortization of intangibles from acquisitions | 7,775 | 1,807 | |||||
Provision for doubtful accounts | 4,850 | 5,010 | |||||
Amortization of debt discount and debt issuance costs | 1,275 | 530 | |||||
Loss on disposition of assets and assets held-for-sale | 2,759 | 21,572 | |||||
20,586 | - | ||||||
Stock-based compensation | 6,581 | 5,912 | |||||
Deferred income taxes | (6,612 | ) | (7,317 | ) | |||
Loss on equity investments | 86 | 3,427 | |||||
Unrealized (gain) loss on foreign currency | (81 | ) | 357 | ||||
Increase in customer receivable | (32,955 | ) | - | ||||
Change in prepaid and accrued income taxes | (3,868 | ) | 3,017 | ||||
Change in other operating assets and liabilities | (1,770 | ) | (33,827 | ) | |||
Net cash provided by operating activities | 80,548 | 86,284 | |||||
Capital expenditures | (96,442 | ) | (60,358 | ) | |||
Reimbursable capital expenditures | (9,700 | ) | (14,965 | ) | |||
Purchase of businesses, net of |
(340,152 | ) | - | ||||
Purchases of intangible assets, including deposits | - | (20,396 | ) | ||||
Purchases of strategic investments | (6,399 | ) | (2,768 | ) | |||
Proceeds from strategic investments | - | 11,969 | |||||
Purchases of short-term investments | - | (116 | ) | ||||
Proceeds from sales of short-term investments | - | 120 | |||||
Receipt of government grants | 7,517 | 16,316 | |||||
Sale of business, net of transferred cash of |
18,597 | - | |||||
Net cash used in investing activities | (426,579 | ) | (70,198 | ) | |||
Dividends paid on common stock | (10,813 | ) | (10,891 | ) | |||
Distributions to non-controlling interests | (7,468 | ) | (10,368 | ) | |||
Term loan - borrowing | 210,000 | - | |||||
Term loan - repayments | (8,758 | ) | (13,751 | ) | |||
Revolving credit facility – borrowings | 97,000 | - | |||||
Revolving credit facility – repayments | (33,500 | ) | - | ||||
Proceeds from mezzanine equity | 71,533 | - | |||||
Payment of debt issuance costs | (6,568 | ) | (1,096 | ) | |||
Proceeds from customer receivable credit facility | 37,321 | - | |||||
Repayment of customer receivable credit facility | (1,828 | ) | - | ||||
Purchases of common stock - stock-based compensation | (1,713 | ) | (1,733 | ) | |||
Proceeds from stock option exercises | 383 | - | |||||
Purchases of common stock - share repurchase plan | (10,546 | ) | (6,589 | ) | |||
Repurchases of non-controlling interests | (13,312 | ) | (28,939 | ) | |||
Net cash provided by (used in) financing activities | 321,731 | (73,367 | ) | ||||
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash | - | (80 | ) | ||||
Net change in total cash, cash equivalents and restricted cash | (24,300 | ) | (57,361 | ) | |||
Total cash, cash equivalents and restricted cash, beginning of period | 104,997 | 162,358 | |||||
Total cash, cash equivalents and restricted cash, end of period | $ | 80,697 | $ | 104,997 |
Table 4 | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the three months ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Mobility | |||||||||||||||
Business | $ | 3,066 | $ | 253 | $ | - | $ | - | $ | 3,319 | |||||
Consumer | 21,881 | 1,274 | - | - | 23,155 | ||||||||||
Total | $ | 24,947 | $ | 1,527 | $ | - | $ | - | $ | 26,474 | |||||
Fixed | |||||||||||||||
Business | $ | 17,421 | $ | 26,875 | $ | - | $ | - | $ | 44,296 | |||||
Consumer | 40,750 | 18,891 | - | - | 59,641 | ||||||||||
Total | $ | 58,171 | $ | 45,766 | $ | - | $ | - | $ | 103,937 | |||||
Carrier Services | $ | 2,974 | $ | 37,079 | $ | - | $ | - | $ | 40,053 | |||||
Other | 258 | - | - | - | 258 | ||||||||||
Total Communications Services | $ | 86,350 | $ | 84,372 | $ | - | $ | - | $ | 170,722 | |||||
Construction | $ | - | $ | 7,840 | $ | - | $ | - | $ | 7,840 | |||||
Managed services | $ | 1,168 | $ | 7,841 | $ | - | $ | - | $ | 9,009 | |||||
Total Other | $ | 1,168 | $ | 7,841 | $ | - | $ | - | $ | 9,009 | |||||
Total Revenue | $ | 87,518 | $ | 100,053 | $ | - | $ | - | $ | 187,571 | |||||
Depreciation | $ | 13,746 | $ | 19,109 | $ | - | $ | 1,254 | $ | 34,109 | |||||
Amortization of intangibles from acquisitions | $ | 418 | $ | 2,962 | $ | - | $ | - | $ | 3,380 | |||||
Total operating expenses | $ | 94,617 | $ | 103,151 | $ | 971 | $ | 9,129 | $ | 207,868 | |||||
Operating loss | $ | (7,100 | ) | $ | (3,096 | ) | $ | (971 | ) | $ | (9,130 | ) | $ | (20,297 | ) |
Stock-based compensation | $ | 44 | $ | 125 | $ | - | $ | 1,295 | $ | 1,464 | |||||
Non-controlling interest ( net income or (loss) ) | $ | (1,691 | ) | $ | 1,378 | $ | - | $ | - | $ | (313 | ) | |||
Non GAAP measures: | |||||||||||||||
EBITDA (1) | $ | 7,064 | $ | 18,975 | $ | (971 | ) | $ | (7,876 | ) | $ | 17,192 | |||
Adjusted EBITDA (2) | $ | 27,931 | $ | 22,292 | $ | (58 | ) | $ | (7,835 | ) | $ | 42,330 | |||
Balance Sheet Data (at |
|||||||||||||||
Cash, cash equivalents and investments | $ | 43,128 | $ | 28,486 | $ | 659 | $ | 7,628 | $ | 79,901 | |||||
Total current assets | 108,677 | 111,741 | 3,585 | 8,614 | 232,617 | ||||||||||
Fixed assets, net | 452,856 | 480,250 | - | 10,103 | 943,209 | ||||||||||
Total assets | 630,515 | 877,041 | 17,481 | 83,567 | 1,608,604 | ||||||||||
Total current liabilities | 91,090 | 108,950 | 356 | 20,548 | 220,944 | ||||||||||
Total debt | 64,243 | 240,802 | - | 61,499 | 366,544 | ||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the three months ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Mobility | |||||||||||||||
Business | $ | 1,183 | $ | 264 | $ | - | $ | - | $ | 1,447 | |||||
Consumer | 21,349 | 2,160 | - | - | 23,509 | ||||||||||
Total | $ | 22,532 | $ | 2,424 | $ | - | $ | - | $ | 24,956 | |||||
Fixed | |||||||||||||||
Business | $ | 16,661 | $ | 3,562 | $ | - | $ | - | $ | 20,223 | |||||
Consumer | 41,294 | 3,526 | - | - | 44,820 | ||||||||||
Total | $ | 57,955 | $ | 7,068 | $ | - | $ | - | $ | 65,043 | |||||
Carrier Services | $ | 1,728 | $ | 18,669 | $ | - | $ | - | $ | 20,397 | |||||
Other | 248 | - | - | - | 248 | ||||||||||
Total Communications Services | $ | 82,463 | $ | 28,181 | $ | - | $ | - | $ | 110,644 | |||||
Construction | $ | - | $ | 10,519 | $ | - | $ | - | $ | 10,519 | |||||
Renewable Energy | $ | - | $ | - | $ | 1,182 | $ | - | $ | 1,182 | |||||
Managed services | 1,356 | - | - | - | 1,356 | ||||||||||
Total Other | $ | 1,356 | $ | - | $ | 1,182 | $ | - | $ | 2,538 | |||||
Total Revenue | $ | 83,819 | $ | 38,700 | $ | 1,182 | $ | - | $ | 123,701 | |||||
Depreciation | $ | 13,743 | $ | 5,994 | $ | 626 | $ | 1,436 | $ | 21,799 | |||||
Amortization of intangibles from acquisitions | $ | 423 | $ | - | $ | - | $ | - | $ | 423 | |||||
Total operating expenses | $ | 69,013 | $ | 36,876 | $ | 23,756 | $ | 8,756 | $ | 138,401 | |||||
Operating income (loss) | $ | 14,806 | $ | 1,824 | $ | (22,574 | ) | $ | (8,756 | ) | $ | (14,700 | ) | ||
Stock-based compensation | $ | 29 | $ | 15 | $ | 66 | $ | 1,194 | $ | 1,304 | |||||
Non-controlling interest ( net income or (loss) ) | $ | (8 | ) | $ | (1,171 | ) | $ | 24 | $ | (1,721 | ) | $ | (2,876 | ) | |
Non GAAP measures: | |||||||||||||||
EBITDA (1) | $ | 28,972 | $ | 7,818 | $ | (21,948 | ) | $ | (7,320 | ) | $ | 7,522 | |||
Adjusted EBITDA (2) | $ | 28,960 | $ | 7,793 | $ | 235 | $ | (6,460 | ) | $ | 30,528 | ||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the year ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Mobility | |||||||||||||||
Business | $ | 6,983 | $ | 1,402 | $ | - | $ | - | $ | 8,385 | |||||
Consumer | 86,384 | 7,532 | - | - | 93,916 | ||||||||||
Total | $ | 93,367 | $ | 8,934 | $ | - | $ | - | $ | 102,301 | |||||
Fixed | |||||||||||||||
Business | $ | 67,458 | $ | 53,283 | $ | - | $ | - | $ | 120,741 | |||||
Consumer | 166,005 | 41,897 | - | - | 207,902 | ||||||||||
Total | $ | 233,463 | $ | 95,180 | $ | - | $ | - | $ | 328,643 | |||||
Carrier Services | $ | 9,937 | $ | 107,793 | $ | - | $ | - | $ | 117,730 | |||||
Other | 946 | - | - | - | 946 | ||||||||||
Total Communications Services | $ | 337,713 | $ | 211,907 | $ | - | $ | - | $ | 549,620 | |||||
Construction | $ | - | $ | 35,889 | $ | - | $ | - | $ | 35,889 | |||||
Renewable Energy | $ | - | $ | - | $ | 417 | $ | - | $ | 417 | |||||
Managed services | 5,146 | 11,635 | - | - | 16,781 | ||||||||||
Total Other | $ | 5,146 | $ | 11,635 | $ | 417 | $ | - | $ | 17,198 | |||||
Total Revenue | $ | 342,859 | $ | 259,431 | $ | 417 | $ | - | $ | 602,707 | |||||
Depreciation | $ | 53,858 | $ | 43,604 | $ | 188 | $ | 5,081 | $ | 102,731 | |||||
Amortization of intangibles from acquisitions | $ | 1,648 | $ | 6,127 | $ | - | $ | - | $ | 7,775 | |||||
Total operating expenses | $ | 308,961 | $ | 273,447 | $ | 2,876 | $ | 32,448 | $ | 617,732 | |||||
Operating income (loss) | $ | 33,899 | $ | (14,016 | ) | $ | (2,459 | ) | $ | (32,449 | ) | $ | (15,025 | ) | |
Stock-based compensation | $ | 128 | $ | 271 | $ | 22 | $ | 6,160 | $ | 6,581 | |||||
Non-controlling interest ( net income or (loss) ) | $ | (7,548 | ) | $ | 5,452 | $ | 797 | $ | - | $ | (1,299 | ) | |||
Non GAAP measures: | |||||||||||||||
EBITDA (1) | $ | 89,405 | $ | 35,715 | $ | (2,271 | ) | $ | (27,368 | ) | $ | 95,481 | |||
Adjusted EBITDA (2) | $ | 110,207 | $ | 47,888 | $ | (168 | ) | $ | (28,880 | ) | $ | 129,047 | |||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the year ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Mobility | |||||||||||||||
Business | $ | 4,319 | $ | 404 | $ | 4,723 | |||||||||
Consumer | 78,817 | 9,222 | - | - | 88,039 | ||||||||||
Total | $ | 83,136 | $ | 9,626 | $ | - | $ | - | $ | 92,762 | |||||
Fixed | |||||||||||||||
Business | $ | 67,776 | $ | 10,237 | $ | - | $ | - | $ | 78,013 | |||||
Consumer | 162,599 | 12,032 | 174,631 | ||||||||||||
Total | $ | 230,375 | $ | 22,269 | $ | - | $ | - | $ | 252,644 | |||||
Carrier Services | $ | 7,120 | $ | 79,448 | $ | - | $ | - | $ | 86,568 | |||||
Other | 1,535 | - | - | - | 1,535 | ||||||||||
Total Communications Services | $ | 322,166 | $ | 111,343 | $ | - | $ | - | $ | 433,509 | |||||
Construction | $ | - | $ | 10,913 | $ | - | $ | - | $ | 10,913 | |||||
Renewable Energy | $ | - | $ | - | $ | 4,555 | $ | - | $ | 4,555 | |||||
Managed services | 6,467 | - | - | - | 6,467 | ||||||||||
Total Other | $ | 6,467 | $ | - | $ | 4,555 | $ | - | $ | 11,022 | |||||
Total Revenue | $ | 328,633 | $ | 122,256 | $ | 4,555 | $ | - | $ | 455,444 | |||||
Depreciation | $ | 54,477 | $ | 23,325 | $ | 2,216 | $ | 6,486 | $ | 86,504 | |||||
Amortization of intangibles from acquisitions | $ | 1,807 | $ | - | $ | - | $ | - | $ | 1,807 | |||||
Total operating expenses | $ | 269,709 | $ | 114,285 | $ | 28,304 | $ | 33,966 | $ | 446,264 | |||||
Operating income (loss) | $ | 58,924 | $ | 7,971 | $ | (23,749 | ) | $ | (33,966 | ) | $ | 9,180 | |||
Stock-based compensation | $ | 49 | $ | 15 | $ | 262 | $ | 5,585 | $ | 5,911 | |||||
Non-controlling interest ( net income or (loss) ) | $ | (9,499 | ) | $ | (4,051 | ) | $ | 136 | $ | - | $ | (13,414 | ) | ||
Non GAAP measures: | |||||||||||||||
EBITDA (1) | $ | 115,208 | $ | 31,296 | $ | (21,533 | ) | $ | (27,480 | ) | $ | 97,491 | |||
Adjusted EBITDA (2) | $ | 115,210 | $ | 31,272 | $ | 779 | $ | (26,557 | ) | $ | 120,704 | ||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
at |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Balance Sheet Data (at |
|||||||||||||||
Cash, cash equivalents and investments | $ | 45,848 | $ | 26,921 | $ | 4,311 | $ | 26,845 | $ | 103,925 | |||||
Total current assets | 107,315 | 65,806 | 39,057 | 27,887 | 240,065 | ||||||||||
Fixed assets, net | 449,888 | 73,717 | - | 12,857 | 536,462 | ||||||||||
Total assets | 642,834 | 265,797 | 39,045 | 136,035 | 1,083,711 | ||||||||||
Total current liabilities | 80,875 | 43,200 | 1,038 | 22,815 | 147,928 | ||||||||||
Total debt | 72,823 | - | - | - | 72,823 | ||||||||||
(1) See Table 5 for reconciliation of Operating Income to EBITDA | |||||||||||||||
(2) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA | |||||||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Selected Segment Operational Information | |||||||||||||||
As of | |||||||||||||||
2021 | |||||||||||||||
Consolidated Operational Data: | |||||||||||||||
7,900 | |||||||||||||||
394 | |||||||||||||||
398 | |||||||||||||||
Broadband Homes Passed - total | 493,000 | ||||||||||||||
Broadband Homes Passed - by HSD *** | 179,900 | ||||||||||||||
% Broadband Homes Passed by HSD *** | 36 | % | |||||||||||||
Broadband Customers | 203,700 | ||||||||||||||
HSD *** Capable Customers | 98,100 | ||||||||||||||
% HSD*** Capable Customers | 48 | % | |||||||||||||
* All cell sites, including rooftops, that the company serves with its own fiber | |||||||||||||||
** All geographically distinct cell sites, including towers and other structures | |||||||||||||||
*** HSD is defined as download speeds > 100 Mbs | |||||||||||||||
Quarter ended | |||||||||||||||
2020 | 2021 | 2021 | 2021 | 2021 | |||||||||||
International Telecom Operational Data: | |||||||||||||||
Mobile - Subscribers # | |||||||||||||||
Pre-Paid | 257,200 | 261,900 | 273,400 | 276,400 | 285,800 | ||||||||||
Post-Paid | 44,700 | 45,700 | 46,600 | 49,300 | 49,800 | ||||||||||
Total | 301,900 | 307,600 | 320,000 | 325,700 | 335,600 | ||||||||||
Mobile - Churn | 2.17 | % | 2.26 | % | 2.19 | % | 2.68 | % | 2.73 | % | |||||
Fixed - Subscribers# | |||||||||||||||
Broadband | 140,100 | 142,900 | 143,000 | 143,900 | 146,300 | ||||||||||
Video | 35,800 | 35,300 | 33,600 | 33,100 | 32,600 | ||||||||||
Voice | 164,300 | 165,500 | 165,800 | 166,200 | 167,400 | ||||||||||
# Counts were adjusted for all periods presented based upon a change in methodology and process |
Table 5 | |||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||
(In Thousands) | |||||||||||||||
For the three months ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Operating loss | $ | (7,100 | ) | $ | (3,096 | ) | $ | (971 | ) | $ | (9,130 | ) | $ | (20,297 | ) |
Depreciation expense | 13,746 | 19,109 | - | 1,254 | 34,109 | ||||||||||
Amortization of intangibles from acquisitions | 418 | 2,962 | - | - | 3,380 | ||||||||||
EBITDA | $ | 7,064 | $ | 18,975 | $ | (971 | ) | $ | (7,876 | ) | $ | 17,192 | |||
Transaction-related charges | - | 2,357 | - | 41 | 2,398 | ||||||||||
20,586 | - | - | - | 20,586 | |||||||||||
Loss on disposition of assets | 281 | 960 | 913 | - | 2,154 | ||||||||||
ADJUSTED EBITDA | $ | 27,931 | $ | 22,292 | $ | (58 | ) | $ | (7,835 | ) | $ | 42,330 | |||
Revenue | 87,518 | 100,053 | - | - | 187,571 | ||||||||||
ADJUSTED EBITDA MARGIN | 31.9 | % | 22.3 | % | NA | NA | 22.6 | % | |||||||
For the three months ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Operating income (loss) | $ | 14,806 | $ | 1,824 | $ | (22,574 | ) | $ | (8,756 | ) | $ | (14,700 | ) | ||
Depreciation expense | 13,743 | 5,994 | 626 | 1,436 | 21,799 | ||||||||||
Amortization of intangibles from acquisitions | 423 | - | - | - | 423 | ||||||||||
EBITDA | $ | 28,972 | $ | 7,818 | $ | (21,948 | ) | $ | (7,320 | ) | $ | 7,522 | |||
Transaction-related charges | - | - | 634 | 860 | 1,494 | ||||||||||
(Gain) Loss on disposition of assets | (12 | ) | (25 | ) | 21,549 | - | 21,512 | ||||||||
ADJUSTED EBITDA | $ | 28,960 | $ | 7,793 | $ | 235 | $ | (6,460 | ) | $ | 30,528 | ||||
Revenue | 83,819 | 38,700 | 1,182 | - | 123,701 | ||||||||||
ADJUSTED EBITDA MARGIN | 34.6 | % | 20.1 | % | 19.9 | % | NA | 24.7 | % | ||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||
(In Thousands) | |||||||||||||||
For the year ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Operating income (loss) | $ | 33,899 | $ | (14,016 | ) | $ | (2,459 | ) | $ | (32,449 | ) | $ | (15,025 | ) | |
Depreciation expense | 53,858 | 43,604 | 188 | 5,081 | 102,731 | ||||||||||
Amortization of intangibles from acquisitions | 1,648 | 6,127 | - | - | 7,775 | ||||||||||
EBITDA | $ | 89,405 | $ | 35,715 | $ | (2,271 | ) | $ | (27,368 | ) | $ | 95,481 | |||
Transaction-related charges | - | 11,390 | 566 | (1,735 | ) | 10,221 | |||||||||
20,586 | - | - | - | 20,586 | |||||||||||
Loss on disposition of assets | 216 | 783 | 1,537 | 223 | 2,759 | ||||||||||
ADJUSTED EBITDA | $ | 110,207 | $ | 47,888 | $ | (168 | ) | $ | (28,880 | ) | $ | 129,047 | |||
Revenue | 342,859 | 259,431 | 417 | - | 602,707 | ||||||||||
ADJUSTED EBITDA MARGIN | 32.1 | % | 18.5 | % | -40.3 | % | NA | 21.4 | % | ||||||
For the year ended |
|||||||||||||||
Renewable Energy | Corporate and Other * | Total | |||||||||||||
Operating income (loss) | $ | 58,924 | $ | 7,971 | $ | (23,749 | ) | $ | (33,966 | ) | $ | 9,180 | |||
Depreciation expense | 54,477 | 23,325 | 2,216 | 6,486 | 86,504 | ||||||||||
Amortization of intangibles from acquisitions | 1,807 | - | - | - | 1,807 | ||||||||||
EBITDA | $ | 115,208 | $ | 31,296 | $ | (21,533 | ) | $ | (27,480 | ) | $ | 97,491 | |||
Transaction-related charges | - | - | 718 | 923 | 1,641 | ||||||||||
(Gain) Loss on disposition of assets | 2 | (24 | ) | 21,594 | - | 21,572 | |||||||||
ADJUSTED EBITDA | $ | 115,210 | $ | 31,272 | $ | 779 | $ | (26,557 | ) | $ | 120,704 | ||||
Revenue | 328,633 | 122,256 | 4,555 | - | 455,444 | ||||||||||
ADJUSTED EBITDA MARGIN | 35.1 | % | 25.6 | % | 17.1 | % | NA | 26.5 | % |
Table 6 |
|||||||
Non GAAP Measure - Net Debt Ratio | |||||||
(in Thousands, Except per Share Data) | |||||||
At |
|||||||
2021 | 2020 | ||||||
Current portion of long-term debt | $ | 4,665 | $ | 3,750 | |||
Long-term debt, net of current portion | 327,111 | 69,073 | |||||
Total debt | $ | 331,776 | $ | 72,823 | |||
Less: Cash and cash equivalents | 79,601 | 103,925 | |||||
Net Debt | $ | 252,175 | $ | (31,102 | ) | ||
Adjusted EBITDA - for the year ended | $ | 129,047 | $ | 120,704 | |||
Net Debt Ratio | 1.95 | (0.26 | ) |
_________________________________
1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.
2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.
3
4
5 Net Debt Ratio is defined as total Debt less Cash and Cash Equivalents divided by Adjusted EBITDA – see Table 6.
Source: ATN International, Inc.