ATN Reports Third Quarter 2018 Results
- Another Quarter of Sequential Earnings Growth
- Restoration of US Virgin Islands Network Almost Complete
Third Quarter Financial Highlights:
- Revenues:
$121.1 million - Adjusted EBITDA1:
$38.9 million - Operating income:
$30.8 million - Net income attributable to ATN stockholders:
$17.0 million , or$1.06 per diluted share - Cash flow from operating activities for first nine months of 2018 was
$98.0 million
Business Review and Outlook
“Our third quarter results largely followed the same favorable trends as the second quarter. We continued to see sequential growth in profitability, reflecting positive comparisons in our international telecom operations and the receipt of additional FCC USF support,” said
“In addition to the underlying sequential earnings growth achieved in the third quarter, operating and net income benefitted from a gain on the completion of our previously-disclosed sale of approximately 100 wholesale cell sites in the U.S. Telecom segment. Similarly, we expect to report an additional gain in this year’s fourth quarter following the completion of our recently-announced sale of our U.S. solar portfolio if the transaction closes as and when expected. At the same time, we are continuing to invest in solar power facilities in other markets and look for other opportunities in the renewable energy sector as well.
“As mentioned last quarter, we have several initiatives under way in which we have invested some of our balance sheet capacity in early-stage small businesses to pursue growth. We remain optimistic that with pressure on large carriers to seek better network economics and focus internal spending on areas of strategic differentiation, there will be opportunities for us to put capital to work in shared infrastructure solutions,” Mr. Prior noted.
Third Quarter 2018 Financial Results
Third quarter 2018 revenues of
Revenues for the first nine months of 2018 were
Third Quarter 2018 Operating Highlights
The Company has three reportable segments: (i) U.S. Telecom; (ii) International Telecom; and (iii) Renewable Energy.
U.S. Telecom
U.S. Telecom revenues consist mainly of wireless revenues from our voice and data wholesale roaming operations and our smaller retail operations in the
U.S. Telecom Adjusted EBITDA1 of
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
International Telecom Adjusted EBITDA1 of
The sale of our U.S. solar portfolio currently is expected to close in the fourth quarter and we expect to record a gain on this sale. The transaction will reduce this segment’s revenue and Adjusted EBITDA1 compared to the prior year periods beginning in the period of the sale. In the third quarter of 2018 the U.S. solar portfolio had revenues of
Balance Sheet and Cash Flow Highlights
Total cash at
The pending sale of the U.S. solar business resulted in the classification of the related assets and liabilities of that business as held for sale as of
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 estimated timeline for the rebuilding of our operations and 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; 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.
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.
Table 1 | |||||
ATN International, Inc. | |||||
Unaudited Condensed Consolidated Balance Sheets | |||||
(in Thousands) | |||||
September 30, | December 31, | ||||
2018 | 2017 | ||||
Assets: | |||||
Cash and cash equivalents | $ | 161,112 | $ | 207,956 | |
Restricted cash | 1,071 | 833 | |||
Short-term investments | 314 | 7,076 | |||
Other current assets | 89,323 | 127,063 | |||
Assets held for sale | 97,477 | - | |||
Total current assets | 349,297 | 342,928 | |||
Long-term restricted cash | 11,768 | 11,101 | |||
Property, plant and equipment, net | 614,427 | 643,146 | |||
Goodwill and other intangible assets, net | 169,785 | 171,656 | |||
Other assets | 38,773 | 36,774 | |||
Total assets | $ | 1,184,050 | $ | 1,205,605 | |
Liabilities and Stockholders’ Equity: | |||||
Current portion of long-term debt | $ | 4,688 | $ | 10,919 | |
Taxes payable | 12,789 |
6,751 | |||
Other current liabilities | 117,176 | 144,035 | |||
Liabilities held for sale | 80,673 | - | |||
Total current liabilities | 215,326 | 161,705 | |||
Long-term debt, net of current portion | $ | 87,183 | $ | 144,873 | |
Deferred income taxes | 7,614 | 31,732 | |||
Other long-term liabilities | 44,880 | 37,072 | |||
Total long-term liabilities | 139,677 | 213,677 | |||
Total liabilities | 355,003 | 375,382 | |||
Total ATN International, Inc.’s stockholders’ equity | 697,655 | 688,727 | |||
Non-controlling interests | 131,392 | 141,496 | |||
Total equity | 829,047 | 830,223 | |||
Total liabilities and stockholders’ equity | $ | 1,184,050 | $ | 1,205,605 | |
Table 2 | ||||||||||||||||||
ATN International, Inc. | ||||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||||
(in Thousands, Except per Share Data) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Revenues: | ||||||||||||||||||
Wireless | $ | 52,003 | $ | 60,305 | $ | 153,046 | $ | 175,777 | ||||||||||
Wireline | 63,717 | 56,817 | 173,083 | 182,777 | ||||||||||||||
Renewable energy | 5,418 | 5,010 | 17,272 | 14,938 | ||||||||||||||
Total revenue | 121,138 | 122,132 | 343,401 | 373,492 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Termination and access fees | 29,866 | 30,554 | 84,037 | 94,478 | ||||||||||||||
Engineering and operations | 18,177 | 18,852 | 54,738 | 57,881 | ||||||||||||||
Sales, marketing and customer service | 8,995 | 8,440 | 25,969 | 26,176 | ||||||||||||||
General and administrative | 25,210 | 26,660 | 77,470 | 77,089 | ||||||||||||||
Transaction-related charges | 178 | 61 | 642 | 887 | ||||||||||||||
Depreciation and amortization | 21,384 | 21,157 | 64,602 | 65,904 | ||||||||||||||
(Gain) Loss on disposition of assets | (13,496 | ) | (593 | ) | (15,509 | ) | 513 | |||||||||||
Loss on damaged assets and other hurricane related charges | - | 36,566 | 666 | 36,566 | ||||||||||||||
Total operating expenses | 90,314 | 141,697 | 292,615 | 359,494 | ||||||||||||||
Operating income (loss) | 30,824 | (19,565 | ) | 50,786 | 13,998 | |||||||||||||
Other income (expense): | ||||||||||||||||||
Interest expense, net | (1,661 | ) | (1,645 | ) | (5,339 | ) | (5,480 | ) | ||||||||||
Loss on deconsolidation of subsidiary | - | - | - | (529 | ) | |||||||||||||
Other income (expense) | (1,244 | ) | (650 | ) | (3,042 | ) | (1,631 | ) | ||||||||||
Other expense, net | (2,905 | ) | (2,295 | ) | (8,381 | ) | (7,640 | ) | ||||||||||
Income (Loss) before income taxes | 27,919 | (21,860 | ) | 42,405 | 6,358 | |||||||||||||
Income tax expense (benefit) | 7,010 | (884 | ) | 13,018 | 4,839 | |||||||||||||
Net Income (Loss) | 20,909 | (20,976 | ) | 29,387 | 1,519 | |||||||||||||
Net income attributable to non-controlling interests, net | (3,887 | ) | (3,784 | ) | (10,705 | ) | (13,535 | ) | ||||||||||
Net Income (Loss) attributable to ATN International, Inc. stockholders | $ | 17,022 | $ | (24,760 | ) | $ | 18,682 | $ | (12,016 | ) | ||||||||
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders: | ||||||||||||||||||
Basic Net Income | $ | 1.07 | $ | (1.53 | ) | $ | 1.17 | $ | (0.74 | ) | ||||||||
Diluted Net Income | $ | 1.06 | $ | (1.53 | ) | $ | 1.16 | $ | (0.74 | ) | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||||
Basic | 15,958 | 16,178 | 15,987 | 16,177 | ||||||||||||||
Diluted | 16,021 | 16,178 | 16,042 | 16,177 | ||||||||||||||
Table 3 | |||||||
ATN International, Inc. | |||||||
Unaudited Condensed Consolidated Cash Flow Statement | |||||||
(in Thousands) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Net income | $ | 29,387 | $ | 1,519 | |||
Depreciation and amortization | 64,602 | 65,904 | |||||
Provision for doubtful accounts | 4,199 | 3,041 | |||||
(Gain) Loss on disposition of assets | (15,509 | ) | 513 | ||||
Loss on deconsolidation of subsidiary | - | 529 | |||||
Stock-based compensation | 5,071 | 5,437 | |||||
Loss on damaged assets and other hurricane related charges | - | 35,213 | |||||
Loss in equity method investments | - | 2,033 | |||||
Deferred income taxes | (3,062 | ) | 1,456 | ||||
Change in prepaid and accrued income taxes | 10,558 | (7,966 | ) | ||||
Change in other operating assets and liabilities | (20 |
) | 14,393 | ||||
Other non-cash activity | 2,788 | (84 | ) | ||||
Net cash provided by operating activities | 98,014 | 121,988 | |||||
Capital expenditures | (75,375 | ) | (108,276 | ) | |||
Hurricane rebuild capital expenditures | (78,903 | ) | - | ||||
Hurricane insurance proceeds | 34,606 | - | |||||
Acquisition of business | - | (1,183 | ) | ||||
Sale of business, net of transferred cash of $0 and $2.1 million | 926 | 22,381 | |||||
Purchases of spectrum licenses and other intangible assets, including deposits | - | (36,832 | ) | ||||
Net proceeds from sale of assets | 4,130 | - | |||||
Purchases of investments | (3,000 | ) | (18,107 | ) | |||
Proceeds from sale of investments | 6,564 | 2,761 | |||||
Government grants | 5,400 | - | |||||
Net cash used in investing activities | (105,652 | ) | (139,256 | ) | |||
Dividends paid on common stock | (8,153 | ) | (16,502 | ) | |||
Distributions to non-controlling interests | (15,271 | ) | (3,583 | ) | |||
Principal repayments of term loan | (5,723 | ) | (5,446 | ) | |||
Proceeds from new borrowings | - | 8,571 | |||||
Purchases of common stock | (3,677 | ) | (11,139 | ) | |||
Acquisition of business, net of acquired cash of $0 | - | (1,178 | ) | ||||
Repurchases of non-controlling interests | (5,196 | ) | (1,104 | ) | |||
Other | 72 | 727 | |||||
Net cash used in financing activities | (37,948 | ) | (29,654 | ) | |||
Effect of foreign currency exchange rates on total cash | (353 | ) | 200 | ||||
Net change in total cash | (45,939 | ) | (46,722 | ) | |||
Total cash, cash equivalents and restricted cash, beginning of period | 219,890 | 288,358 | |||||
Total cash, cash equivalents and restricted cash, end of period | $ | 173,951 | $ | 241,636 | |||
Table 4 | |||||||||||||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the three months ended September 30, 2018 is as follows: | |||||||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Wireless | $ | 29,784 | $ | 22,219 | $ | - | $ | - | $ | 52,003 | |||||
Wireline | 2,024 | 61,693 | - | - | 63,717 | ||||||||||
Renewable Energy | - | - | 5,418 | - | 5,418 | ||||||||||
Total Revenue | $ | 31,808 | $ | 83,912 | $ | 5,418 | $ | - | $ | 121,138 | |||||
Operating Income (Loss) | $ | 22,773 | $ | 16,239 | $ | (177 | ) | $ | (8,011 | ) | $ | 30,824 | |||
Non-controlling interest ( net income or (loss) ) | $ | (1,299 | ) | $ | (2,375 | ) | $ | (213 | ) | $ | - | $ | (3,887 | ) | |
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA | $ | 13,529 | $ | 28,645 | $ | 3,090 | $ | (6,375 | ) | $ | 38,889 | ||||
Balance Sheet Data (at September 30, 2018): | |||||||||||||||
Cash, cash equivalents and investments | $ | 25,202 | $ | 50,753 | $ | 12,085 | $ | 73,386 | $ | 161,426 | |||||
Assets held for sale | - | - | 97,477 | - | 97,477 | ||||||||||
Total current assets | 48,003 | 99,624 | 121,070 | 80,600 | 349,297 | ||||||||||
Fixed assets, net | 80,088 | 473,086 | 41,716 | 19,537 | 614,427 | ||||||||||
Total assets | 187,831 | 640,123 | 178,663 | 177,433 | 1,184,050 | ||||||||||
Liabilities held for sale | - | - | 80,673 | - | 80,673 | ||||||||||
Total current liabilities | 23,825 | 84,310 | 84,659 | 22,532 | 215,326 | ||||||||||
Total debt | - | 91,871 | - | - | 91,871 | ||||||||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the three months ended September 30, 2017 is as follows: | |||||||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Wireless | $ | 37,774 | $ | 22,531 | $ | - | $ | - | $ | 60,305 | |||||
Wireline | 2,336 | 54,481 | - | - | 56,817 | ||||||||||
Renewable Energy | - | - | 5,010 | - | 5,010 | ||||||||||
Total Revenue | $ | 40,110 | $ | 77,012 | $ | 5,010 | $ | - | $ | 122,132 | |||||
Operating Income (Loss) | $ | 15,987 | $ | (28,531 | ) | $ | 976 | $ | (7,997 | ) | $ | (19,565 | ) | ||
Non-controlling interest ( net income or (loss) ) | $ | (1,268 | ) | $ | (2,243 | ) | $ | (273 | ) | $ | - | $ | (3,784 | ) | |
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA | $ | 21,695 | $ | 20,300 | $ | 2,632 | $ | (7,001 | ) | $ | 37,626 | ||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the nine months ended September 30, 2018 is as follows: | |||||||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Wireless | $ | 85,767 | $ | 67,279 | $ | - | $ | - | $ | 153,046 | |||||
Wireline | 4,824 | 168,259 | - | - | 173,083 | ||||||||||
Renewable Energy | - | - | 17,272 | - | 17,272 | ||||||||||
Total Revenue | $ | 90,591 | $ | 235,538 | $ | 17,272 | $ | - | $ | 343,401 | |||||
Operating Income (Loss) | $ | 35,839 | $ | 37,449 | $ | 3,687 | $ | (26,189 | ) | $ | 50,786 | ||||
Non-controlling interest ( net income or (loss) ) | $ | (2,771 | ) | $ | (7,209 | ) | $ | (725 | ) | $ | - | $ | (10,705 | ) | |
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA | $ | 38,208 | $ | 74,055 | $ | 10,691 | $ | (21,767 | ) | $ | 101,187 | ||||
Statement of Cash Flow Data: | |||||||||||||||
Capital expenditures | $ | 9,460 | $ | 136,791 | $ | 1,641 | $ | 6,386 | $ | 154,278 | |||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the nine months ended September 30, 2017 is as follows: | |||||||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Wireless | $ | 110,398 | $ | 65,379 | $ | - | $ | - | $ | 175,777 | |||||
Wireline | 10,483 | 172,294 | - | - | 182,777 | ||||||||||
Renewable Energy | - | - | 14,938 | - | 14,938 | ||||||||||
Total Revenue | $ | 120,881 | $ | 237,673 | $ | 14,938 | $ | - | $ | 373,492 | |||||
Operating Income (Loss) | $ | 44,520 | $ | (7,833 | ) | $ | 3,263 | $ | (25,952 | ) | $ | 13,998 | |||
Non-controlling interest ( net income or (loss) ) | $ | (5,441 | ) | $ | (7,256 | ) | $ | (838 | ) | $ | - | $ | (13,535 | ) | |
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA | $ | 64,131 | $ | 67,247 | $ | 8,204 | $ | (21,714 | ) | $ | 117,868 | ||||
Statement of Cash Flow Data: | |||||||||||||||
Capital expenditures | $ | 17,395 | $ | 54,775 | $ | 31,327 | $ | 4,779 | $ | 108,276 | |||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the year ended December 31, 2017 is as follows: | |||||||||||||||
U.S. Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
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 | ||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
ATN International, Inc. | |||||||||||||||
Selected Segment Operational Data | |||||||||||||||
Quarter ended | |||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||
2017 |
2017 |
2018 |
2018 |
2018 |
|||||||||||
U.S. Telecom Operational Data: | |||||||||||||||
Wireless - Total Domestic Base Stations | 1,061 | 1,100 | 1,122 | 1,121 | 1,035 | ||||||||||
International Telecom Operational Data: | |||||||||||||||
Wireline - Voice / Access lines* | 162,500 | 161,500 | 165,300 | 168,400 | 170,400 | ||||||||||
Wireline - Data Subscribers* | 105,000 | 107,000 | 109,800 | 113,200 | 115,900 | ||||||||||
Wireline - Video Subscribers | 46,700 | 45,700 | 44,500 | 43,400 | 43,600 | ||||||||||
Wireless - Subscribers* | 302,000 | 307,200 | 310,700 | 308,700 | 301,300 | ||||||||||
* 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 September 30, 2018 and 2017 | |||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||
U.S. Telecom |
Renewable Energy |
Corporate and Other * |
Total | ||||||||||||
International Telecom |
|||||||||||||||
Net income attributable to ATN International, Inc. stockholders | $ | 17,022 | |||||||||||||
Net income attributable to non-controlling interests, net of tax | 3,887 | ||||||||||||||
Income tax expense | 7,010 | ||||||||||||||
Other (income) expense, net | 1,244 | ||||||||||||||
Interest expense, net | 1,661 | ||||||||||||||
Operating income | $ | 22,773 | $ | 16,239 | $ | (177 | ) | $ | (8,011 | ) | $ | 30,824 | |||
Depreciation and amortization | 5,665 | 12,441 | 1,819 | 1,458 | 21,383 | ||||||||||
(Gain) Loss on disposition of assets | (14,909 | ) | (35 | ) | 1,448 | - | (13,496 | ) | |||||||
Transaction-related charges | - | - | - | 178 | 178 | ||||||||||
Adjusted EBITDA | $ | 13,529 | $ | 28,645 | $ | 3,090 | $ | (6,375 | ) | $ | 38,889 | ||||
Three Months Ended September 30, 2017 | |||||||||||||||
U.S. Telecom |
Renewable Energy |
Corporate and Other * |
Total | ||||||||||||
International Telecom |
|||||||||||||||
Net Income (loss) attributable to ATN International, Inc. stockholders | $ | (24,760 | ) | ||||||||||||
Net income attributable to non-controlling interests, net of tax | 3,784 | ||||||||||||||
Income tax benefit | (884 | ) | |||||||||||||
Other expense, net | 650 | ||||||||||||||
Interest expense, net | 1,645 | ||||||||||||||
Operating income | $ | 15,987 | $ | (28,531 | ) | $ | 976 | $ | (7,997 | ) | $ | (19,565 | ) | ||
Depreciation and amortization | 6,301 | 12,088 | 1,656 | 1,112 | 21,157 | ||||||||||
(Gain) Loss on disposition of assets | (593 | ) | - | - | - | (593 | ) | ||||||||
Loss on damaged assets and other hurricane related charges, net of insurance recovery | - | 36,566 | - | - | 36,566 | ||||||||||
Transaction-related charges | - | 177 | - | (116 | ) | 61 | |||||||||
Adjusted EBITDA | $ | 21,695 | $ | 20,300 | $ | 2,632 | $ | (7,001 | ) | $ | 37,626 | ||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA for the Nine Months Ended September 30, 2018 and 2017 | |||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||
U.S. Telecom |
Renewable Energy |
Corporate and Other * |
Total | ||||||||||||
International Telecom |
|||||||||||||||
Net income attributable to ATN International, Inc. stockholders | $ | 18,682 | |||||||||||||
Net income attributable to non-controlling interests, net of tax | 10,705 | ||||||||||||||
Income tax expense | 13,018 | ||||||||||||||
Other (income) expense, net | 3,042 | ||||||||||||||
Interest expense, net | 5,339 | ||||||||||||||
Operating income | $ | 35,839 | $ | 37,449 | $ | 3,687 | $ | (26,189 | ) | $ | 50,786 | ||||
Depreciation and amortization | 19,013 | 35,907 | 5,492 | 4,190 | 64,602 | ||||||||||
(Gain) Loss on disposition of assets | (17,054 | ) | 33 | 1,512 | - | (15,509 | ) | ||||||||
Loss on damaged assets and other hurricane related charges | - | 666 | - | - | 666 | ||||||||||
Transaction-related charges | 410 | - | - | 232 | 642 | ||||||||||
Adjusted EBITDA | $ | 38,208 | $ | 74,055 | $ | 10,691 | $ | (21,767 | ) | $ | 101,187 | ||||
Nine Months Ended September 30, 2017 | |||||||||||||||
U.S. Telecom |
Renewable Energy |
Corporate and Other * |
Total | ||||||||||||
International Telecom |
|||||||||||||||
Net Income attributable to ATN International, Inc. stockholders | $ | (12,016 | ) | ||||||||||||
Net income attributable to non-controlling interests, net of tax | 13,535 | ||||||||||||||
Income tax expense | 4,839 | ||||||||||||||
Other expense, net | 1,631 | ||||||||||||||
Loss on deconsolidation of subsidiary | 529 | ||||||||||||||
Interest expense, net | 5,480 | ||||||||||||||
Operating income | $ | 44,520 | $ | (7,833 | ) | $ | 3,263 | $ | (25,952 | ) | $ | 13,998 | |||
Depreciation and amortization | 19,098 | 38,337 | 4,941 | 3,528 | 65,904 | ||||||||||
(Gain) Loss on disposition of assets | 513 | - | - | - | 513 | ||||||||||
Loss on damaged assets and other hurricane related charges | - | 36,566 | - | - | 36,566 | ||||||||||
Transaction-related charges | - | 177 | - | 710 | 887 | ||||||||||
Adjusted EBITDA | $ | 64,131 | $ | 67,247 | $ | 8,204 | $ | (21,714 | ) | $ | 117,868 | ||||
* 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 September 30, 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 | $ | 30,824 | $ | 17,022 | $ | 1.06 | ||||
Adjust for: Loss on damaged assets and other hurricane related charges | - | - | - | |||||||
Tax effect | - | - | - | |||||||
Non-GAAP | $ | 30,824 | $ | 17,022 | $ | 1.06 | ||||
For the Three Months Ended September 30, 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 | $ | (19,565 | ) | $ | (24,760 | ) | $ | (1.53 | ) | |
Adjust for: Loss on damaged assets and other hurricane related charges | 36,566 | 36,566 | 2.26 | |||||||
Tax effect | - | 69 | 0.00 | |||||||
Non-GAAP | $ | 17,001 | $ | 11,875 | $ | 0.73 | ||||
For the Nine Months Ended September 30, 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 | $ | 50,786 | $ | 18,682 | $ | 1.16 | ||||
Adjust for: Loss on damaged assets and other hurricane related charges | 666 | 666 | 0.04 | |||||||
Tax effect | - | - | - | |||||||
Non-GAAP | $ | 51,452 | $ | 19,348 | $ | 1.20 | ||||
For the Nine Months Ended September 30, 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 | $ | 13,998 | $ | (12,016 | ) | $ | (0.74 | ) | ||
Adjust for: Loss on damaged assets and other hurricane related charges | 36,566 | 36,566 | 2.26 | |||||||
Tax effect | - | 69 | 0.00 | |||||||
Non-GAAP | $ | 50,564 | $ | 24,619 | $ | 1.52 | ||||
_____________________________________
1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.
CONTACT:
978-619-1300
Chairman and
Chief Executive Officer
Justin D. Benincasa
Chief Financial Officer
Source: ATN International, Inc.