ATN Reports Third Quarter 2019 Results
Third Quarter Results
- Revenue was
$115.6 million compared to prior year of$121.1 million - Excluding one-time items and a sale transaction, revenue increased year-on-year
- International Telecom operations continue strong cash flow trends
- US Telecom operations benefitted from new long-term contracts
Business Review and Outlook
“Our third quarter performance reflects both continued organic growth in our International Telecom businesses and the improved performance of our US Telecom segment,” said
“We continued to achieve positive operating results in our International Telecom segment, where we are benefitting from leadership positions in key markets and the network investments made in the past several years to expand fiber coverage and data capacity. Additionally, the steady recovery of our
“US Telecom segment revenues also increased at a mid-single digit rate in the third quarter, and we were pleased to see a positive year-over-year comparison for the quarter. The positive revenue performance this quarter benefitted from a full quarter of Connect America Fund Phase ll (CAF II) federal support revenue and the new contract signed in August as part of a comprehensive agreement to support AT&T’s partnership with the
“With respect to our
Third Quarter 2019 Financial Results
Third quarter 2019 revenues of
______________________________________________________________________
1 See Table 6 for reconciliation of Revenue to Recurring Revenue, which is a non-GAAP measure
2 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.
Third Quarter 2019 Operating Highlights
The Company has three reportable segments: (i) US Telecom; (ii) International Telecom; and (iii) Renewable Energy.
Segment Results (in Thousands) | ||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||
US Telecom | International Telecom |
Renewable Energy |
Corporate and Other |
Total | ||||||||
Revenue | $ | 32,893 | $ | 81,285 | $ | 1,438 | $ | - | $ | 115,616 | ||
Operating Income (Loss) | $ | 7,912 | $ | 10,867 | $ | (714 | ) | $ | (7,817 | ) | $ | 10,248 |
Adjusted EBITDA2 | $ | 13,779 | $ | 24,956 | $ | 337 | $ | (6,068 | ) | $ | 33,004 | |
Nine Months Ended September 30, 2019 |
||||||||||||
Capital Expenditures | $ | 8,533 | $ | 33,159 | $ | 2,183 | $ | 5,611 | $ | 49,486 | ||
Three Months Ended September 30, 2018 |
||||||||||||
US Telecom | International Telecom |
Renewable Energy |
Corporate and Other |
Total | ||||||||
Revenue | $ | 31,808 | $ | 83,912 | $ | 5,418 | $ | - | $ | 121,138 | ||
Operating Income (Loss) | $ | 22,773 | $ | 16,239 | $ | (177 | ) | $ | (8,011 | ) | $ | 30,824 |
Adjusted EBITDA2 | $ | 13,529 | $ | 28,645 | $ | 3,090 | $ | (6,374 | ) | $ | 38,890 | |
Nine Months Ended September 30, 2018 |
||||||||||||
Capital Expenditures | $ | 9,460 | $ | 136,791 | $ | 1,641 | $ | 6,386 | $ | 154,278 |
The following is the reconciliation of Revenue to Recurring Revenue for the three months ended
Reconciliation of Revenue to Recurring Revenue1 (in Thousands) | |||||||||||||
Three Months Ended September 30, 2019 |
|||||||||||||
US Telecom | International Telecom |
Renewable Energy |
Corporate and Other |
Total | |||||||||
Revenue | $ | 32,893 | $ | 81,285 | $ | 1,438 | $ | - | $ | 115,616 | |||
Adjustments | $ | - | $ | - | $ | - | $ | - | $ | - | |||
Recurring Revenue1 | $ | 32,893 | $ | 81,285 | $ | 1,438 | $ | - | $ | 115,616 | |||
Three Months Ended September 30, 2018 |
|||||||||||||
US Telecom | International Telecom |
Renewable Energy |
Corporate and Other |
Total | |||||||||
Revenue | $ | 31,808 | $ | 83,912 | $ | 5,418 | $ | - | $ | 121,138 | |||
USF Incremental high cost support funding | $ | - | $ | (7,219 | ) | $ | - | $ | - | $ | (7,219 | ) | |
US Solar portfolio revenues | $ | - | $ | - | $ | (4,182 | ) | $ | - | $ | (4,182 | ) | |
Recurring Revenue1 | $ | 31,808 | $ | 76,693 | $ | 1,236 | $ | - | $ | 109,737 |
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
US Telecom
US Telecom revenues consist mainly of wireless revenues from our voice and data wholesale wireless operations and our smaller retail operations in the
Balance Sheet and Cash Flow Highlights
Total cash, cash equivalents and restricted cash at
Conference Call Information
ATN will host a conference call on
About ATN
Cautionary Language Concerning Forward Looking Statements
This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations including revenue and adjusted EBITDA expectations and capital expenditures for 2019; the competitive environment in our key markets, demand for our services and industry trends; our growth opportunities; the estimated increase in revenues from our customers in the
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has included Recurring Revenue and Adjusted EBITDA in this release and in the tables included herein.
Recurring Revenue is defined as total revenue adjusted to exclude the receipt of incremental USF support funds in support of the Company’s restoration of its network following the 2017 hurricanes in the
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.
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, | ||||
2019 | 2018 | ||||
Assets: | |||||
Cash and cash equivalents | $ | 165,280 | $ | 191,836 | |
Restricted cash | 1,071 | 1,071 | |||
Short-term investments | 3,250 | 393 | |||
Other current assets | 88,210 | 82,465 | |||
Total current assets | 257,811 | 275,765 | |||
Property, plant and equipment, net | 605,501 | 626,852 | |||
Operating lease right-of-use assets | 71,111 | - | |||
Goodwill and other intangible assets, net | 165,521 | 166,979 | |||
Other assets | 62,856 | 37,708 | |||
Total assets | $ | 1,162,800 | $ | 1,107,304 | |
Liabilities and Stockholders’ Equity: | |||||
Current portion of long-term debt | $ | 4,688 | $ | 4,688 | |
Taxes payable | 9,999 | 31,795 | |||
Current portion of operating lease liabilities | 9,912 | - | |||
Other current liabilities | 116,431 | 104,167 | |||
Total current liabilities | 141,030 | 140,650 | |||
Long-term debt, net of current portion | $ | 83,577 | $ | 86,294 | |
Deferred income taxes | 3,989 | 10,276 | |||
Operating lease liabilities | 59,663 | - | |||
Other long-term liabilities | 56,242 | 46,760 | |||
Total liabilities | 344,501 | 283,980 | |||
Total ATN International, Inc.’s stockholders’ equity | 688,083 | 695,387 | |||
Non-controlling interests | 130,216 | 127,937 | |||
Total equity | 818,299 | 823,324 | |||
Total liabilities and stockholders’ equity | $ | 1,162,800 | $ | 1,107,304 | |
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, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Wireless | $ | 54,555 | $ | 52,003 | $ | 143,705 | $ | 153,046 | |||||||
Wireline | 59,623 | 63,717 | 178,555 | 173,083 | |||||||||||
Renewable energy | 1,438 | 5,418 | 4,377 | 17,272 | |||||||||||
Total revenue | 115,616 | 121,138 | 326,637 | 343,401 | |||||||||||
Operating expenses: | |||||||||||||||
Termination and access fees | 27,622 | 29,866 | 83,440 | 84,037 | |||||||||||
Engineering and operations | 20,095 | 18,177 | 58,234 | 54,738 | |||||||||||
Sales, marketing and customer service | 9,785 | 8,995 | 29,048 | 25,969 | |||||||||||
General and administrative | 25,110 | 25,210 | 75,518 | 77,470 | |||||||||||
Transaction-related charges | 21 | 178 | 89 | 642 | |||||||||||
Depreciation and amortization | 22,603 | 21,384 | 64,870 | 64,602 | |||||||||||
(Gain) loss on disposition of assets | 132 | (13,496 | ) | 321 | (15,509 | ) | |||||||||
Loss on damaged assets and other hurricane related charges | - | - | - | 666 | |||||||||||
Total operating expenses | 105,368 | 90,314 | 311,520 | 292,615 | |||||||||||
Operating income | 10,248 | 30,824 | 15,117 | 50,786 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (884 | ) | (1,661 | ) | (1,983 | ) | (5,339 | ) | |||||||
Other income (expense) | (2,686 | ) | (1,244 | ) | (2,755 | ) | (3,042 | ) | |||||||
Other income (expense), net | (3,570 | ) | (2,905 | ) | (4,738 | ) | (8,381 | ) | |||||||
Income before income taxes | 6,678 | 27,919 | 10,379 | 42,405 | |||||||||||
Income tax expense | 1,834 | 7,010 | 2,774 | 13,018 | |||||||||||
Net Income | 4,844 | 20,909 | 7,605 | 29,387 | |||||||||||
Net income attributable to non-controlling interests, net | (3,459 | ) | (3,887 | ) | (8,657 | ) | (10,705 | ) | |||||||
Net income (loss) attributable to ATN International, Inc. stockholders | $ | 1,385 | $ | 17,022 | $ | (1,052 | ) | $ | 18,682 | ||||||
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders: | |||||||||||||||
Basic Net Income (Loss) | $ | 0.09 | $ | 1.07 | $ | (0.07 | ) | $ | 1.17 | ||||||
Diluted Net Income (Loss) | $ | 0.09 | $ | 1.06 | $ | (0.07 | ) | $ | 1.16 | ||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 16,000 | 15,958 | 15,984 | 15,987 | |||||||||||
Diluted | 16,007 | 16,021 | 15,984 | 16,042 | |||||||||||
Table 3 | |||||||
ATN International, Inc. | |||||||
Unaudited Condensed Consolidated Cash Flow Statement | |||||||
(in Thousands) | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Net income | $ | 7,605 | $ | 29,387 | |||
Depreciation and amortization | 64,870 | 64,602 | |||||
Provision for doubtful accounts | 3,796 | 4,199 | |||||
(Gain) Loss on disposition of assets | 321 | (15,509 | ) | ||||
Stock-based compensation | 4,881 | 5,071 | |||||
Deferred income taxes | (6,287 | ) | (3,062 | ) | |||
Investment loss | 2,313 | - | |||||
Change in prepaid and accrued income taxes | (13,889 | ) | 10,557 | ||||
Change in other operating assets and liabilities | (7,444 | ) | (19 | ) | |||
Other non-cash activity | 681 | 2,788 | |||||
Net cash provided by operating activities | 56,847 | 98,014 | |||||
Capital expenditures | (49,363 | ) | (75,375 | ) | |||
Hurricane rebuild capital expenditures | (123 | ) | (78,903 | ) | |||
Hurricane insurance proceeds | - | 34,606 | |||||
Purchases of strategic investments | (10,285 | ) | (3,000 | ) | |||
Proceeds from sale of short-term investments | 5,141 | 6,564 | |||||
Purchase of short-term investments | (8,028 | ) | - | ||||
Proceeds from sale of assets | - | 4,130 | |||||
Divestiture of business | - | 926 | |||||
Government grants | - | 5,400 | |||||
Net cash used in investing activities | (62,658 | ) | (105,652 | ) | |||
Dividends paid on common stock | (8,160 | ) | (8,153 | ) | |||
Distributions to non-controlling interests | (5,760 | ) | (15,271 | ) | |||
Principal repayments of term loan | (2,825 | ) | (5,723 | ) | |||
Payment of debt issuance costs | (1,340 | ) | - | ||||
Stock-based compensation share repurchases | (1,607 | ) | (2,101 | ) | |||
Purchases of common stock - share buyback | (162 | ) | (1,576 | ) | |||
Repurchases of non-controlling interests | (1,353 | ) | (5,196 | ) | |||
Investments made by minority shareholders | 488 | - | |||||
Other | - | 72 | |||||
Net cash used in financing activities | (20,719 | ) | (37,948 | ) | |||
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash | (26 | ) | (353 | ) | |||
Net change in total cash, cash equivalents and restricted cash | (26,556 | ) | (45,939 | ) | |||
Total cash, cash equivalents and restricted cash, beginning of period | 192,907 | 219,890 | |||||
Total cash, cash equivalents and restricted cash, end of period | $ | 166,351 | $ | 173,951 | |||
Table 4 |
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ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the three months ended September 30, 2019 is as follows: | |||||||||||||||
US Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Wireless | $ | 32,168 | $ | 22,387 | $ | - | $ | - | $ | 54,555 | |||||
Wireline | 725 | 58,898 | - | - | 59,623 | ||||||||||
Renewable Energy | - | - | 1,438 | - | 1,438 | ||||||||||
Total Revenue | $ | 32,893 | $ | 81,285 | $ | 1,438 | $ | - | $ | 115,616 | |||||
Operating Income (Loss) | $ | 7,912 | $ | 10,867 | $ | (714 | ) | $ | (7,817 | ) | $ | 10,248 | |||
Stock-based compensation | $ | - | $ | 285 | $ | - | $ | 1,263 | $ | 1,548 | |||||
Non-controlling interest ( net income or (loss) ) | $ | (1,342 | ) | $ | (2,154 | ) | $ | 37 | $ | - | $ | (3,459 | ) | ||
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA (1) | $ | 13,779 | $ | 24,956 | $ | 337 | $ | (6,068 | ) | $ | 33,004 | ||||
Balance Sheet Data (at September 30, 2019): | |||||||||||||||
Cash, cash equivalents and investments | $ | 36,738 | $ | 51,178 | $ | 21,030 | $ | 59,585 | $ | 168,530 | |||||
Total current assets | 60,782 | 101,113 | 38,696 | 57,220 | 257,811 | ||||||||||
Fixed assets, net | 69,642 | 470,338 | 43,497 | 22,024 | 605,501 | ||||||||||
Total assets | 230,585 | 660,367 | 86,224 | 185,624 | 1,162,800 | ||||||||||
Total current liabilities | 30,870 | 75,348 | 1,354 | 33,458 | 141,030 | ||||||||||
Total debt | - | 88,265 | - | - | 88,265 | ||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the three months ended September 30, 2018 is as follows: | |||||||||||||||
US 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 | |||
Stock-based compensation | - | 20 | 29 | 1,344 | 1,393 | ||||||||||
Non-controlling interest ( net income or (loss) ) | $ | (1,299 | ) | $ | (2,375 | ) | $ | (213 | ) | $ | - | $ | (3,887 | ) | |
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA (1) | $ | 13,529 | $ | 28,645 | $ | 3,090 | $ | (6,374 | ) | $ | 38,890 | ||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the nine months ended September 30, 2019 is as follows: | |||||||||||||||
US Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Statement of Operations Data: | |||||||||||||||
Revenue | |||||||||||||||
Wireless | $ | 78,261 | $ | 65,444 | $ | - | $ | - | $ | 143,705 | |||||
Wireline | 2,538 | 176,017 | - | - | 178,555 | ||||||||||
Renewable Energy | - | - | 4,377 | - | 4,377 | ||||||||||
Total Revenue | $ | 80,799 | $ | 241,461 | $ | 4,377 | $ | - | $ | 326,637 | |||||
Operating Income (Loss) | $ | 5,927 | $ | 35,802 | $ | (750 | ) | $ | (25,862 | ) | $ | 15,117 | |||
Stock-based compensation | $ | - | 306 | $ | - | 4,575 | $ | 4,881 | |||||||
Non-controlling interest ( net income or (loss) ) | $ | (1,864 | ) | $ | (6,810 | ) | $ | 17 | $ | - | $ | (8,657 | ) | ||
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA (1) | $ | 23,007 | $ | 76,497 | $ | 1,693 | $ | (20,800 | ) | $ | 80,397 | ||||
Statement of Cash Flows Data: | |||||||||||||||
Capital expenditures | $ | 8,533 | $ | 33,159 | $ | 2,183 | $ | 5,611 | $ | 49,486 | |||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
For the nine months ended September 30, 2018 is as follows: | |||||||||||||||
US 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 | ||||
Stock-based compensation | - | 68 | 86 | 4,917 | 5,071 | ||||||||||
Non-controlling interest ( net income or (loss) ) | $ | (2,771 | ) | $ | (7,209 | ) | $ | (725 | ) | $ | - | $ | (10,705 | ) | |
Non GAAP measure: | |||||||||||||||
Adjusted EBITDA (1) | $ | 38,208 | $ | 74,055 | $ | 10,691 | $ | (21,767 | ) | $ | 101,187 | ||||
Statement of Cash Flows Data: | |||||||||||||||
Capital expenditures | $ | 9,460 | $ | 136,791 | $ | 1,641 | $ | 6,386 | $ | 154,278 | |||||
ATN International, Inc. | |||||||||||||||
Selected Segment Financial Information | |||||||||||||||
(In Thousands) | |||||||||||||||
at December 31, 2018 | |||||||||||||||
US Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Balance Sheet Data (at December 31, 2018): | |||||||||||||||
Cash, cash equivalents and investments | $ | 19,118 | $ | 32,390 | $ | 62,678 | $ | 78,043 | $ | 192,229 | |||||
Total current assets | 36,801 | 75,304 | 80,553 | 83,107 | 275,765 | ||||||||||
Fixed assets, net | 78,102 | 482,770 | 45,599 | 20,381 | 626,852 | ||||||||||
Total assets | 172,634 | 622,454 | 130,427 | 181,789 | 1,107,304 | ||||||||||
Total current liabilities | 15,783 | 82,575 | 3,465 | 38,827 | 140,650 | ||||||||||
Total debt | - | 90,970 | 12 | - | 90,982 | ||||||||||
(1) See Table 5 for reconciliation of Net Income to Adjusted EBITDA | |||||||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Quarter ended | |||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||
2018** | 2018** | 2019 | 2019 | 2019 | |||||||||||
US Telecom Operational Data: | |||||||||||||||
Wireless - Total Domestic Base Stations | 1,035 | 1,045 | 1,046 | 1,048 | 1,048 | ||||||||||
International Telecom Operational Data: | |||||||||||||||
Wireline - Voice / Access lines* | 170,400 | 171,100 | 171,200 | 171,200 | 170,200 | ||||||||||
Wireline - Data Subscribers* | 116,800 | 119,800 | 123,600 | 124,700 | 127,100 | ||||||||||
Wireline - Video Subscribers | 43,600 | 41,700 | 41,000 | 39,700 | 38,600 | ||||||||||
Wireless - Subscribers* | 300,600 | 300,400 | 293,500 | 290,400 | 284,800 | ||||||||||
* Subscriber counts were adjusted for all periods presented based upon a change in methodology | |||||||||||||||
** For the presented 2018 quarters, subscribers for wireline voice, data and video in the U.S. Virgin Islands are included as active and in the subscriber count, but many were not billed post-hurricane | |||||||||||||||
Table 5 | |||||||||||||||
ATN International, Inc. | |||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||
(In Thousands) | |||||||||||||||
|
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Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended September 30, 2019 and 2018 | |||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||
US Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Net income (loss)attributable to ATN International, Inc. stockholders | $ | 1,385 | |||||||||||||
Net income attributable to non-controlling interests, net of tax | 3,459 | ||||||||||||||
Income tax expense | 1,834 | ||||||||||||||
Other (income) expense, net | 2,686 | ||||||||||||||
Interest expense, net | 884 | ||||||||||||||
Operating income | $ | 7,912 | $ | 10,867 | $ | (714 | ) | $ | (7,817 | ) | $ | 10,248 | |||
Depreciation and amortization | 5,770 | 14,089 | 1,016 | 1,728 | 22,603 | ||||||||||
(Gain) Loss on disposition of assets | 97 | - | 35 | - | 132 | ||||||||||
Transaction-related charges | - | - | - | 21 | 21 | ||||||||||
Adjusted EBITDA | $ | 13,779 | $ | 24,956 | $ | 337 | $ | (6,068 | ) | $ | 33,004 | ||||
Three Months Ended September 30, 2018 | |||||||||||||||
US Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Net Income (loss) attributable to ATN International, Inc. stockholders | $ | 17,022 | |||||||||||||
Net income attributable to non-controlling interests, net of tax | 3,887 | ||||||||||||||
Income tax benefit | 7,010 | ||||||||||||||
Other 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 | 1,459 | 21,384 | ||||||||||
(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 | $ | (6,374 | ) | $ | 38,890 | ||||
* 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, 2019 and 2018 | |||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||
US Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
Net income attributable to ATN International, Inc. stockholders | $ | (1,052 | ) | ||||||||||||
Net income attributable to non-controlling interests, net of tax | 8,657 | ||||||||||||||
Income tax expense | 2,774 | ||||||||||||||
Other (income) expense, net | 2,755 | ||||||||||||||
Interest expense, net | 1,983 | ||||||||||||||
Operating income | $ | 5,927 | $ | 35,802 | $ | (750 | ) | $ | (25,862 | ) | $ | 15,117 | |||
Depreciation and amortization | 16,919 | 40,709 | 2,269 | 4,973 | 64,870 | ||||||||||
(Gain) Loss on disposition of long-lived assets | 161 | (14 | ) | 174 | - | 321 | |||||||||
Transaction-related charges | - | - | - | 89 | 89 | ||||||||||
Adjusted EBITDA | $ | 23,007 | $ | 76,497 | $ | 1,693 | $ | (20,800 | ) | $ | 80,397 | ||||
Nine Months Ended September 30, 2018 | |||||||||||||||
US Telecom |
International Telecom |
Renewable Energy |
Corporate and Other * |
Total | |||||||||||
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 long-lived assets | (17,054 | ) | 33 | 1,512 | - | (15,509 | ) | ||||||||
Loss on damaged assets and other hurricane related charges, net of insurance recovery | - | 666 | - | - | 666 | ||||||||||
Transaction-related charges | 410 | - | - | 232 | 642 | ||||||||||
Adjusted EBITDA | $ | 38,208 | $ | 74,055 | $ | 10,691 | $ | (21,767 | ) | $ | 101,187 | ||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments | |||||||||||||||
Table 6 | |||||||||||||||
ATN International, Inc. | |||||||||||||||
Reconciliation of Non GAAP Measures | |||||||||||||||
(in Thousands) | |||||||||||||||
Reconciliation of Revenue to Recurring Revenue for the Three Months Ended September 30, 2019 and 2018 | |||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||
US | International | Renewable | |||||||||||||
Telecom | Telecom | Energy | Total | ||||||||||||
Revenue | $ | 32,893 | $ | 81,285 | $ | 1,438 | $ | 115,616 | |||||||
Adjustments for Recurring Revenue: | - | - | - | - | |||||||||||
Recurring Revenue | $ | 32,893 | $ | 81,285 | $ | 1,438 | $ | 115,616 | |||||||
Three Months Ended September 30, 2018 | |||||||||||||||
US | International | Renewable | |||||||||||||
Telecom | Telecom | Energy | Total | ||||||||||||
Revenue | $ | 31,808 | $ | 83,912 | $ | 5,418 | $ | 121,138 | |||||||
Less: USF incremental high cost support funding | - | (7,219 | ) | - | (7,219 | ) | |||||||||
Less: Revenues of US Solar asset portfolio, sold in Q4 2018 | - | - | (4,182 | ) | (4,182 | ) | |||||||||
Recurring Revenue | $ | 31,808 | $ | 76,693 | $ | 1,236 | $ | 109,737 | |||||||
Reconciliation of Revenue to Recurring Revenue for the Nine Months Ended September 30, 2019 and 2018 | |||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||
US | International | Renewable | |||||||||||||
Telecom | Telecom | Energy | Total | ||||||||||||
Revenue | $ | 80,799 | $ | 241,461 | $ | 4,377 | $ | 326,637 | |||||||
Adjustments for Recurring Revenue: | - | - | - | - | |||||||||||
Recurring Revenue | $ | 80,799 | $ | 241,461 | $ | 4,377 | $ | 326,637 | |||||||
Nine Months Ended September 30, 2018 | |||||||||||||||
US | International | Renewable | |||||||||||||
Telecom | Telecom | Energy | Total | ||||||||||||
Revenue | $ | 90,591 | $ | 235,538 | $ | 17,272 | $ | 343,401 | |||||||
Less: USF incremental high cost support funding | - | (15,400 | ) | - | (15,400 | ) | |||||||||
Less: Revenues of US Solar asset portfolio, sold in Q4 2018 | - | - | (13,282 | ) | (13,282 | ) | |||||||||
Less: Revenues from US Telecom wholesale wireless cell sites sold in Q2 2018 | (4,052 | ) | - | - | (4,052 | ) | |||||||||
Recurring Revenue | $ | 86,539 | $ | 220,138 | $ | 3,990 | $ | 310,667 |
Contact: | 978-619-1300 |
Michael T. Prior | |
Chairman and | |
Chief Executive Officer | |
Justin D. Benincasa | |
Chief Financial Officer |
Source: ATN International, Inc.