Press Releases

Jul 29, 2020

ATN Reports Second Quarter 2020 Results

  • Generated Double-Digit Operating Income and EBITDA Growth on Stable Revenues
  • International and US Telecom Services Demonstrated Resilience to COVID-19 Pandemic Disruptions
  • Strong Balance Sheet Provides Significant Strength and Financial Flexibility

BEVERLY, Mass., July 29, 2020 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the second quarter ended June 30, 2020.

Business Review and Outlook

“Our second quarter results benefited from past investments and initiatives, which have led to steady operating income and EBITDA performance across our International Telecom and US Telecom segments. Strong year-on-year operating income and EBITDA comparisons in International Telecom reflect increased usage of our broadband services, which we believe are the best in our markets. This demand for our fixed services helped offset the impact of lower mobile revenue and handset sales due to pandemic-related travel and stay-at-home restrictions,” said Michael Prior, ATN’s Chief Executive Officer.

“In US Telecom, similar to first quarter segment results, we continued to execute on the carrier and CAFII federal revenue support contracts, which will provide relatively consistent revenues for the year. These contracts include our revenue support around the build-out of broadband services in under-served rural areas of the country as part of the federally funded CAFll program, and increased carrier service revenue as part of the FirstNet transaction. We continue to work through pandemic-related construction delays in our FirstNet network buildout and now expect to complete some FirstNet sites in late 2020.  

“We were pleased with our telecom operations’ performance and the role we have been able to play in providing essential connectivity and communications during this crisis, thanks to the commitment and dedication of our employees. Both our domestic and international operations showed resilience in a dynamic and uncertain environment. Looking ahead, we are concerned about the economic impact that long delays in the return of tourism and travel could have on international markets and will adjust our course as needed.  At the same time, we believe that the pandemic will lead to changes in global business and social behaviors and accelerate a shift to heavy telecom and data reliant activity.  This could provide attractive growth opportunities for ATN’s established and emerging businesses. We believe that our conservative approach to balance sheet management should provide the resources to manage through any potential downturns and continue to allow us to make investments that position our telecom services platforms for longer term growth,” Mr. Prior concluded.

Second Quarter Results

Second quarter 2020 consolidated revenues of $109.1 million were up 1% compared to the prior year quarter’s revenue of $107.7 million.  Operating income for the quarter was $7.0 million, up $4.2 million compared with the prior year quarter’s $2.8 million.  EBITDA1 was $29.0 million in the second quarter, up by 19% compared to $24.3 million in the prior year period.  Net income attributable to ATN’s stockholders for the second quarter was $4.7 million, or $0.30 per diluted share, compared with the prior year period’s net loss of $0.9 million, or $0.05 loss per share.

Second Quarter 2020 Operating Highlights

The Company has three reportable segments: (i) International Telecom; (ii) US Telecom; and (iii) Renewable Energy. 

Segment Results (in Thousands)
  Three Months Ended June 30, 2020
  International
Telecom
US Telecom Renewable
Energy
Corporate
and Other
Total
Revenue $ 80,064 $ 28,160 $ 874   $ -   $ 109,098
Operating Income (loss) $ 14,617 $ 1,826 $ (620 ) $ (8,799 ) $ 7,024
EBITDA1 $ 28,749 $ 7,543 $ (134 ) $ (7,143 ) $ 29,015
  Six Months Ended June 30, 2020
Capital Expenditures $ 19,929 $ 8,883 $ 1,634   $ 1,519   $ 31,965


Segment Results (in Thousands)
  Three Months Ended June 30, 2019
  International
Telecom
US Telecom Renewable
Energy
Corporate
and Other
Total
Revenue $ 79,859 $ 26,414 $ 1,448 $ -   $ 107,721
Operating Income $ 11,057 $ 1,521 $ 167 $ (9,991 ) $ 2,754
EBITDA1 $ 24,663 $ 7,072 $ 805 $ (8,237 ) $ 24,303
  Six Months Ended June 30, 2019
Capital Expenditures $ 23,692 $ 6,368 $ 817 $ 4,519   $ 35,396


Beginning in the first quarter of 2020 the Company restructured its presentation of revenue in the Condensed Consolidated Statement of Operations and in the Selected Segment Financial Information tables.  This change is intended to better align our reporting of financial performance with views of the Company management, industry competitors, and to facilitate discussions with investors and analysts.

International Telecom 

International Telecom consists of a broad range of communications services including fixed and mobile data, voice and video service revenues from our operations in Bermuda and the Caribbean.  International Telecom revenues were $80.1 million for the quarter, a slight increase year-on-year mainly due to increases in fixed broadband revenues and increases in managed services revenues partially offset by lower mobile revenues.  Compared to the prior year quarter, operating income increased 32% to $14.6 million and EBITDA1 increased 17% to $28.7 million, respectively, primarily from lower operating costs in the quarter of which approximately $1.0 million was related to one-time expense reductions in the quarter.

US Telecom 

US Telecom revenues consist mainly of carrier services revenues and fixed and mobile communications services from our retail operations in the Southwestern United States, as well as communications services provided to enterprise customers.  US Telecom segment revenues were $28.2 million in the quarter, an increase of 7% over the prior year period primarily due to a full quarter of federal support CAF II revenues in the current year quarter and increased FirstNet carrier services revenue.  The network build portion of the FirstNet agreement has continued during the pandemic, but the overall timing of the build schedule has been delayed.  Subject to ongoing delays caused by the pandemic-related restrictions, we currently expect construction revenues to begin in late 2020 and continue through 2021.  As revenues from the build will be largely offset by construction costs, we do not expect a material impact on operating income or EBITDA1 from this delay.  Operating income increased by $0.3 million from the prior year’s quarter to $1.8 million and EBITDA1 for this segment increased by $0.4 million to $7.5 million. The year-over-year profitability improvements were mainly driven by the revenue increases which were partially offset by additional operating costs related to our early stage business operations.   

Renewable Energy

Renewable Energy segment revenues are principally the result of the generation and sale of energy from our commercial solar projects in India.  We ended the second quarter of 2020 with 52 Megawatts (MWs) of revenue generating solar facilities and expect to begin generating revenue from additional MWs later in the year.  The current quarter’s operating loss was $0.6 million and EBITDA1 was a loss of $0.1 million, both below the prior year’s quarter due to pandemic-related restrictions which resulted in the temporary suspension of some of our customers’ operations.  Those restrictions lifted late in the quarter, and our customers’ operations and revenue generation resumed.  Absent additional government-mandated closures, we expect most of our customers to be fully operational again in the third quarter.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at June 30, 2020 was $125.9 million.  Net cash provided by operating activities was $40.4 million for the six months ended June 30, 2020, compared with $18.5 million for the prior year period.  The increase in operating cash flow compared with the prior year is mostly the result of increased net income and lower tax payments over last year.  For the six months ended June 30, 2020, the Company used net cash of $76.7 million for investing and financing activities compared to $64.8 million for the prior year period.  In the current year, this included $32.0 million in capital expenditures, $20.0 million in purchases of intangible assets, $7.9 million of dividends on common stock and share repurchases, and $5.5 million in minority partner distributions.  Management expects full year 2020 capital expenditures to be lower than originally forecasted at the beginning of the year as a result of the pandemic.  We expect full year 2020 capital expenditures in International Telecom to be approximately $35.0 - $40.0 million.  In the US Telecom segment, we expect capital expenditures to be approximately $25.0 - $30.0 million, including $10.0 million on towers and backhaul to support the FirstNet contract.    

Conference Call Information

ATN will host a conference call on Thursday, July 30, 2020 at 11:30 a.m. Eastern Time (ET) to discuss its second quarter results and business outlook. The call will be hosted by Michael Prior, Chairman 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 4642926. A replay of the call will be available at ir.atni.com beginning at approximately 2:30 p.m. (ET) on July 30, 2020.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, invests in and operates communications, energy and technology businesses in the United States and internationally, including the Caribbean region and Asia-Pacific, with a particular focus on markets with a need for significant infrastructure investments and improvements. Our operating subsidiaries today primarily provide: (i) advanced 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) distributed solar electric power to corporate and government customers and (iii) wholesale communications infrastructure services such as terrestrial and submarine fiber optic transport, communications tower facilities, managed mobile networks, and in-building 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, including the impact of the novel coronavirus pandemic on the economies of the markets we serve, our business and operations; expectations regarding revenue, operating income, EBITDA expectations and capital expenditures for 2020; the competitive environment in our key markets, demand for our services and industry trends; the impact of the CAF II federal support revenues and the FirstNet transaction; the impact of digital enhancements; our liquidity; 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, capital expenditures, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power;  (2) our ability to maintain favorable roaming arrangements, receive roaming traffic and satisfy the needs and demands of our major wireless customers; (3) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (4) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables businesses; (5) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (6) economic, political and other risks and opportunities facing our operations, including those resulting from the pandemic; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to expand and obtain funding for our renewable energy business; (9) our ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (10) the occurrence of weather events and natural catastrophes; (11) increased competition;  (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) our continued access to capital and credit markets; and (14) the risk of currency fluctuation for those markets in which we operate.  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, 2019, filed with the SEC on March 2, 2020 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, except as required by law.

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 included EBITDA in this release and in the tables included herein. 

EBITDA is defined as operating income (loss) before depreciation and amortization expense.   The Company believes that the inclusion of this non-GAAP financial measure 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 this non-GAAP measure, 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 measure included in this press release is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of this non-GAAP financial measure used in this press release to the most directly comparable GAAP financial measure are set forth in the text of, and the accompanying tables to, this press release.  While our non-GAAP financial measure is 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 this financial measure to the comparable GAAP financial measure included below, and not to rely on any single financial measure to evaluate our business.


 
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
       
  June 30,   December 31,
 2020  2019
Assets:      
  Cash and cash equivalents $ 124,798   $ 161,287
  Restricted cash   1,072     1,071
  Short-term investments   285     416
  Other current assets   118,035     65,949
       
  Total current assets   244,190     228,723
       
  Property, plant and equipment, net   587,857     605,581
  Operating lease right-of-use assets   63,933     68,763
 Goodwill and other intangible assets, net   160,996     161,818
  Other assets   54,629     65,841
       
Total assets $ 1,111,605   $ 1,130,726
       
Liabilities and Stockholders’ Equity:      
  Current portion of long-term debt $ 3,750   $ 3,750
  Taxes payable   9,039     8,517
  Current portion of operating lease liabilities   11,313     11,406
  Other current liabilities   94,330     95,996
       
  Total current liabilities   118,432     119,669
       
  Long-term debt, net of current portion $ 80,874   $ 82,676
  Deferred income taxes   5,476     8,680
  Operating lease liabilities   52,420     56,164
  Other long-term liabilities   56,760     57,454
       
Total liabilities   313,962     324,643
       
  Total ATN International, Inc.’s stockholders’ equity   668,730     676,122
  Non-controlling interests   128,913     129,961
       
Total equity   797,643     806,083
       
  Total liabilities and stockholders’ equity $ 1,111,605   $ 1,130,726
       



              Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
               
  Three Months Ended   Six Months Ended
June 30,   June 30,
    2020       2019       2020       2019  
Revenues:              
  Communications services $ 106,240     $ 105,019     $ 214,145     $ 205,633  
  Other   2,858       2,702       5,859       5,388  
  Total revenue   109,098       107,721       220,004       211,021  
               
Operating expenses:              
  Termination and access fees   28,470       27,930       56,583       55,818  
  Engineering and operations   17,367       19,107       35,856       38,139  
  Sales, marketing and customer service   9,373       9,874       18,876       19,264  
  General and administrative   24,752       26,590       49,676       50,405  
  Transaction-related charges   72       28       116       68  
  Depreciation and amortization   21,991       21,549       44,509       42,267  
  (Gain) loss on disposition of assets   49       (111 )     64       191  
Total operating expenses   102,074       104,967       205,680       206,152  
               
Operating income   7,024       2,754       14,324       4,869  
               
Other income (expense):              
  Interest expense, net   (1,508 )     (746 )     (2,421 )     (1,099 )
  Other income (expense)   590       (255 )     (2,310 )     (68 )
  Other income (expense), net   (918 )     (1,001 )     (4,731 )     (1,167 )
               
Income before income taxes   6,106       1,753       9,593       3,702  
  Income tax (benefit) expense   (2,258 )     (274 )     (1,149 )     939  
               
Net Income   8,364       2,027       10,742       2,763  
               
Net income attributable to non-controlling interests, net   (3,618 )     (2,883 )     (7,009 )     (5,198 )
               
Net income (loss) attributable to ATN International, Inc. stockholders $ 4,746     $ (856 )   $ 3,733     $ (2,435 )
               
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:              
               
  Basic Net Income (Loss) $ 0.30     $ (0.05 )   $ 0.23     $ (0.15 )
               
               
  Diluted Net Income (Loss) $ 0.30     $ (0.05 )   $ 0.23     $ (0.15 )
               
Weighted average common shares outstanding:              
  Basic   15,970       15,997       15,958       15,986  
Diluted   16,004       15,997       15,993       15,986  
               
Note: The Company has restructured its presentation of revenues - see Table 4            
               



Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
   
  Six Months Ended June 30,
    2020       2019  
       
       
  Net income $ 10,742     $ 2,762  
  Depreciation and amortization   44,509       42,267  
  Provision for doubtful accounts   3,397       2,736  
  (Gain) Loss on disposition of assets   64       191  
  Stock-based compensation   2,721       3,334  
  Deferred income taxes   (3,204 )     (4,574 )
  Loss on investments   1,412       -  
  Unrealized (gain) loss on foreign currency   780       (160 )
  Change in prepaid and accrued income taxes   (1,439 )     (16,853 )
  Change in other operating assets and liabilities   (18,867 )     (11,482 )
  Other non-cash activity   260       301  
       
  Net cash provided by operating activities   40,375       18,522  
       
  Capital expenditures   (31,965 )     (35,396 )
  Purchases of intangible assets, including deposits   (20,000 )     -  
  Purchases of strategic investments   (2,768 )     (10,000 )
  Purchase of short-term investments   -       (5,028 )
  Sale of short-term investments   -       141  
       
  Net cash used in investing activities   (54,733 )     (50,283 )
       
  Dividends paid on common stock   (5,443 )     (5,439 )
  Distributions to non-controlling interests   (5,541 )     (3,878 )
  Principal repayments of term loan   (1,876 )     (1,887 )
  Payment of debt issuance costs   (1,059 )     (1,340 )
  Stock-based compensation share repurchases   (1,733 )     (1,578 )
  Purchases of common stock - share buyback   (2,449 )     -  
  Repurchases of non-controlling interests   (3,911 )     (861 )
  Investments made by minority shareholders   -       488  
       
  Net cash used in financing activities   (22,012 )     (14,495 )
       
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash   (118 )     31  
       
Net change in total cash, cash equivalents and restricted cash   (36,488 )     (46,225 )
       
Total cash, cash equivalents and restricted cash, beginning of period   162,358       192,907  
       
Total cash, cash equivalents and restricted cash, end of period $ 125,870     $ 146,682  
       



          Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
           
For the three months ended June 30, 2020 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue**          
  Mobility $ 19,062   $ 2,367   $ -   $ -   $ 21,429  
  Fixed   56,567     4,937     -     -     61,504  
  Carrier services   1,897     20,856     -     -     22,753  
  Other   554     -     -     -     554  
Total communications services $ 78,080   $ 28,160   $ -   $ -   $ 106,240  
           
  Renewable Energy $ -   $ -   $ 874   $ -   $ 874  
  Managed Services   1,984     -     -     -     1,984  
Total Other $ 1,984   $ -   $ 874   $ -   $ 2,858  
           
  Total Revenue $ 80,064   $ 28,160   $ 874   $ -   $ 109,098  
           
Operating Income (Loss) $ 14,617   $ 1,826   $ (620 ) $ (8,799 ) $ 7,024  
Stock-based compensation   28     -     131     1,402     1,561  
Non-controlling interest ( net income or (loss) ) $ (2,464 ) $ (1,061 ) $ (93 ) $ -   $ (3,618 )
           
Non GAAP measures:          
EBITDA (1) $ 28,749   $ 7,543   $ (134 ) $ (7,143 ) $ 29,015  
Adjusted EBITDA (2) $ 28,749   $ 7,546   $ (18 ) $ (7,141 ) $ 29,136  
           
Balance Sheet Data (at June 30, 2020):          
Cash, cash equivalents and investments $ 60,598   $ 29,304   $ 22,801   $ 12,380   $ 125,083  
Total current assets   112,845     58,928     25,537     46,880     244,190  
Fixed assets, net   456,633     66,189     44,852     20,183     587,857  
Total assets   656,414     222,046     71,033     162,112     1,111,605  
Total current liabilities   71,627     23,994     1,164     21,647     118,432  
Total debt   84,624     -     -     -     84,624  
           
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments    
           
** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view
  of investors and company management.          
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
           
For the three months ended June 30, 2019 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue**          
  Mobility $ 21,007   $ 2,800   $ -   $ -   $ 23,807  
  Fixed   54,954     3,622     -     -     58,576  
  Carrier services   2,306     19,992     -     -     22,298  
  Other   338     -     -     -     338  
Total communications services $ 78,605   $ 26,414   $ -   $ -   $ 105,019  
           
  Renewable Energy $ -   $ -   $ 1,448   $ -   $ 1,448  
  Managed Services   1,254     -     -     -     1,254  
Total Other $ 1,254   $ -   $ 1,448   $ -   $ 2,702  
           
  Total Revenue $ 79,859   $ 26,414   $ 1,448   $ -   $ 107,721  
           
Operating Income (Loss) $ 11,057   $ 1,521   $ 167   $ (9,991 ) $ 2,754  
Stock-based compensation   11     -     -     2,017     2,028  
Non-controlling interest ( net income or (loss) ) $ (2,260 ) $ (603 ) $ (20 ) $ -   $ (2,883 )
           
Non GAAP measures:          
EBITDA (1) $ 24,663   $ 7,072   $ 805   $ (8,237 ) $ 24,303  
Adjusted EBITDA (2) $ 24,656   $ 6,968   $ 805   $ (8,209 ) $ 24,220  
           
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments    
           
** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view
  of investors and company management.          
           
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
           
For the six months ended June 30, 2020 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue**          
  Mobility $ 39,198   $ 4,770   $ -   $ -   $ 43,968  
  Fixed   115,056     9,762     -     -     124,818  
  Carrier services   3,541     40,927     -     -     44,468  
  Other   891     -     -     -     891  
Total communications services $ 158,686   $ 55,459   $ -   $ -   $ 214,145  
           
  Renewable Energy $ -   $ -   $ 2,196   $ -   $ 2,196  
  Managed Services   3,663     -     -     -     3,663  
Total Other $ 3,663   $ -   $ 2,196   $ -   $ 5,859  
           
  Total Revenue $ 162,349   $ 55,459   $ 2,196   $ -   $ 220,004  
           
Operating Income (Loss) $ 28,005   $ 4,019   $ (1,077 ) $ (16,623 ) $ 14,324  
Stock-based compensation   (9 )   -     131     2,599     2,721  
Non-controlling interest ( net income or (loss) ) $ (5,009 ) $ (2,094 ) $ 94   $ -   $ (7,009 )
           
Non GAAP measures:          
EBITDA (1) $ 56,453   $ 15,621   $ 23   $ (13,264 ) $ 58,833  
Adjusted EBITDA (2) $ 56,466   $ 15,626   $ 153   $ (13,232 ) $ 59,013  
           
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments    
           
** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view
  of investors and company management.          
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the six months ended June 30, 2019 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue**          
  Mobility $ 41,402   $ 5,494   $ -   $ -   $ 46,896  
  Fixed   111,080     5,581     -     -     116,661  
  Carrier services   4,567     36,832     -     -     41,399  
  Other   677     -     -     -     677  
Total communications services $ 157,726   $ 47,907   $ -   $ -   $ 205,633  
           
  Renewable Energy $ -   $ -   $ 2,938   $ -   $ 2,938  
  Managed Services   2,450     -     -     -     2,450  
Total Other $ 2,450   $ -   $ 2,938   $ -   $ 5,388  
           
  Total Revenue $ 160,176   $ 47,907   $ 2,938   $ -   $ 211,021  
           
Operating Income (Loss) $ 24,936   $ (2,006 ) $ (16 ) $ (18,045 ) $ 4,869  
Stock-based compensation   21     -     -     3,313     3,334  
Non-controlling interest ( net income or (loss) ) $ (4,656 ) $ (522 ) $ (20 ) $ -   $ (5,198 )
           
Non GAAP measures:          
EBITDA (1) $ 51,557   $ 9,143   $ 1,237   $ (14,801 ) $ 47,136  
Adjusted EBITDA (2) $ 51,543   $ 9,209   $ 1,376   $ (14,733 ) $ 47,395  
           
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments    
           
** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view
  of investors and company management.          
           
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at December 31, 2019
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Balance Sheet Data (at December 31, 2019):          
Cash, cash equivalents and investments $ 43,125   $ 38,240   $ 25,054   $ 55,284   $ 161,703  
Total current assets   91,497     54,207     27,534     55,484     228,723  
Fixed assets, net   466,523     69,184     48,421     21,452     605,581  
Total assets   647,228     222,356     76,723     184,419     1,130,726  
Total current liabilities   77,644     24,905     2,745     14,374     119,669  
Total debt   86,426     -     -     -     86,426  
           
           
(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    
           
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at June 30, 2020
           
  Quarter ended
  June 30, September 30, December 31, March 31, June 30,
    2019     2019     2019     2020     2020  
           
International Telecom Operational Data:          
Fixed - Voice   165,900     164,900     164,800     166,700     167,100  
Fixed - Data Subscribers   122,300     124,700     127,500     130,900     135,100  
Fixed - Video Subscribers   39,400     38,600     38,100     37,800     36,100  
Mobile - Subscribers *   290,400     285,000     284,100     282,100     276,200  
           
* Counts were adjusted for all periods presented based upon a change in methodology and process    
           



          Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
           
For the three months ended June 30, 2020 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Operating income (loss) $ 14,617   $ 1,826   $ (620 ) $ (8,799 ) $ 7,024  
Depreciation and amortization expense   14,132     5,717     486     1,656     21,991  
EBITDA $ 28,749   $ 7,543   $ (134 ) $ (7,143 )   29,015  
           
Transaction-related charges   -     -     70     2     72  
(Gain) Loss on disposition of assets   -     3     46     -     49  
ADJUSTED EBITDA $ 28,749   $ 7,546   $ (18 ) $ (7,141 )   29,136  
           
Revenue   80,064     28,160     874     -     109,098  
ADJUSTED EBITDA MARGIN   35.9 %   26.8 %   -2.1 % NA   26.7 %
           
           
For the three months ended June 30, 2019 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Operating income (loss) $ 11,057   $ 1,521   $ 167   $ (9,991 ) $ 2,754  
Depreciation and amortization expense   13,606     5,551     638     1,754     21,549  
EBITDA $ 24,663   $ 7,072   $ 805   $ (8,237 )   24,303  
           
Transaction-related charges   -     -     -     28     28  
(Gain) Loss on disposition of assets   (7 )   (104 )   -     -     (111 )
ADJUSTED EBITDA $ 24,656   $ 6,968   $ 805   $ (8,209 )   24,220  
           
Revenue   79,859     26,414     1,448     -     107,721  
ADJUSTED EBITDA MARGIN   30.9 %   26.4 %   55.6 % NA   22.5 %
           
           
           
           
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
           
For the six months ended June 30, 2020 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Operating income (loss) $ 28,005   $ 4,019   $ (1,077 ) $ (16,623 ) $ 14,324  
Depreciation and amortization expense   28,448     11,602     1,100     3,359     44,509  
EBITDA $ 56,453   $ 15,621   $ 23   $ (13,264 )   58,833  
           
Transaction-related charges   -     -     84     32     116  
(Gain) Loss on disposition of assets   13     5     46     -     64  
ADJUSTED EBITDA $ 56,466   $ 15,626   $ 153   $ (13,232 )   59,013  
           
Revenue   162,349     55,459     2,196     -     220,004  
ADJUSTED EBITDA MARGIN   34.8 %   28.2 %   7.0 % NA   26.8 %
           
           
           
For the six months ended June 30, 2019 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Operating income (loss) $ 24,936   $ (2,006 ) $ (16 ) $ (18,045 ) $ 4,869  
Depreciation and amortization expense   26,621     11,149     1,253     3,244     42,267  
EBITDA $ 51,557   $ 9,143   $ 1,237   $ (14,801 )   47,136  
           
Transaction-related charges   -     -     -     68     68  
(Gain) Loss on disposition of assets   (14 )   66     139     -     191  
ADJUSTED EBITDA $ 51,543   $ 9,209   $ 1,376   $ (14,733 )   47,395  
           
Revenue   160,176     47,907     2,938     -     211,021  
ADJUSTED EBITDA MARGIN   32.2 %   19.2 %   46.8 % NA   22.5 %


Contact:
978-619-1300
Michael T. Prior
Chairman and
Chief Executive Officer
Justin D. Benincasa
Chief Financial Officer


ATN International Logo-Blue Orange RGB-medium (1).jpg

Source: ATN International, Inc.