Press Releases

Oct 28, 2020

ATN Reports Third Quarter 2020 Results

  • Results Demonstrate Resilience and Discipline of Company’s Operations
  • International Telecom Posted Strong Growth in Operating Income and Cash Flow
  • US Telecom Delivers Initial FirstNet Sites and Steady Sequential Results

BEVERLY, Mass., Oct. 28, 2020 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the third quarter ended September 30, 2020.

Business Review and Outlook

Commenting on results, Michael Prior, Chief Executive Officer said, “In a time when connectivity and communications are essential, our telecom services operations demonstrated resilience and the benefits of our focus on operational efficiencies and reliability.

“Our International Telecom segment posted another quarter of improved profitability driven by a modest revenue increase and significant cost reductions achieved in several markets. Although some of our markets have been impacted by on-going pandemic-related travel restrictions, we continued to experience strong demand for our data services. This includes high speed internet to the home, an area in which our ongoing network investments have made us a leading high-quality service provider in all of our markets. Also, we were pleased to see a sequential increase in demand for our mobile services, reflecting the benefits of several ongoing sales and marketing initiatives. Our year-on-year EBITDA growth and lower capital expenditures in the segment provides us with substantial cash flow to invest in growth and other opportunities.

“US Telecom results have remained consistent over the last four quarters, however, year-on-year comparisons in this quarter are negatively affected by the previously-discussed treatment of restructured contracts which eliminated seasonality in our revenue reporting this year. After initial pandemic-related construction delays, we completed the first few sites of our FirstNet build-out and expect to complete approximately 25% of the sites by the end of this year. Also, we continue to build out broadband services in under-served rural areas of the country under various programs and initiatives. Our team did excellent work in connection with the FCC’s CBRS auction, which concluded last month with an investment of approximately $20.4 million.

“In summary, we are pleased with how well our operations have performed under challenging conditions, particularly in our international markets, where we have built a portfolio of high value, quality assets by investing in our networks and in management teams that continue to improve margins and quality of service. We are focused on using the cash flow from these operations and our substantial balance sheet capacity to invest in initiatives and programs that we believe have good prospects for growth and attractive risk-adjusted returns,” Mr. Prior concluded.

Third Quarter Results

Third quarter 2020 consolidated revenues of $111.7 million were down 3% compared to the prior year quarter’s revenue of $115.6 million. Operating income for the quarter was $9.6 million, down compared with the prior year quarter’s $10.2 million. EBITDA1 was $31.1 million in the third quarter, down by 5% compared to $32.9 million in the prior year period. Net income attributable to ATN’s stockholders for the third quarter was $2.7 million, or $0.17 per diluted share, compared with the prior year period’s net income of $1.4 million, or $0.09 per diluted share.

Third 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 September 30, 2020
  International
Telecom
US Telecom Renewable
Energy
Corporate
and Other
Total
Revenue $ 82,465 $ 28,097 $ 1,177   $ -   $ 111,739
Operating Income (loss) $ 16,024 $ 2,218 $ (98 ) $ (8,587 ) $ 9,557
EBITDA1 $ 29,695 $ 7,947 $ 393   $ (6,898 ) $ 31,137
Capital Expenditures $ 8,509 $ 8,371 $ 482   $ 1,334   $ 18,696
  Nine Months Ended September 30, 2020
Revenue $ 244,813 $ 83,557 $ 3,373   $ -   $ 331,743
Operating Income (loss) $ 44,119 $ 6,241 $ (1,175 ) $ (25,306 ) $ 23,879
EBITDA1 $ 86,239 $ 23,572 $ 415   $ (20,258 ) $ 89,968
Capital Expenditures $ 28,439 $ 17,254 $ 2,116   $ 2,853   $ 50,662

 

Segment Results (in Thousands)
  Three Months Ended September 30, 2019
  International
Telecom
US Telecom Renewable
Energy
Corporate
and Other
Total
Revenue $ 81,285 $ 32,893 $ 1,438   $ -   $ 115,616
Operating Income (loss) $ 10,867 $ 7,912 $ (714 ) $ (7,817 ) $ 10,248
EBITDA1 $ 24,956 $ 13,682 $ 302   $ (6,089 ) $ 32,851
Capital Expenditures $ 9,467 $ 2,165 $ 1,366   $ 1,093   $ 14,091
  Nine Months Ended September 30, 2019
Revenue $ 241,461 $ 80,800 $ 4,376   $ -   $ 326,637
Operating Income (loss) $ 35,802 $ 5,927 $ (750 ) $ (25,862 ) $ 15,117
EBITDA1 $ 76,511 $ 22,846 $ 1,519   $ (20,889 ) $ 79,987
Capital Expenditures $ 33,159 $ 8,533 $ 2,183   $ 5,611   $ 49,486

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 and industry competitors, and to facilitate discussions with investors and analysts.

International Telecom

International Telecom revenues are generated by delivery of a broad range of communications services, including data, voice and video services from our fixed and mobile network operations in Bermuda and the Caribbean. International Telecom revenues were $82.5 million for the quarter, a 1% increase year-on-year mainly due to increases in fixed broadband revenues partially offset by lower carrier services revenues related to lower roaming traffic due to travel restrictions. Compared to the prior year quarter, operating income increased 47% to $16.0 million and EBITDA1 increased 19% to $29.7 million, respectively, primarily from lower operating costs in the quarter. In October 2020, we completed a transaction to increase our equity ownership in One Communications, the Company’s Bermuda and Cayman based subsidiary, through the purchase of an additional approximately 10% stake, which is expected to be accretive to overall Company earnings beginning in the fourth quarter of 2020. Since the 2016 merger of our Bermuda-based mobile operations with KeyTech to create One Communications, we have increased our equity ownership position from 50% to approximately 70%.

US Telecom

US Telecom revenues consist mainly of carrier services revenues and fixed and mobile retail revenues from our networks and operations in the western United States, as well as communications services provided to enterprise customers.  US Telecom segment revenues were $28.1 million in the quarter, a decrease of 15% from the prior year period primarily due to the accounting impact of restructured carrier contracts, which eliminated the seasonal revenue accounting of the previous agreements. The network build portion of the FirstNet agreement has continued during the pandemic and the first few sites were completed and activated during the third quarter. Although the overall timing of the build schedule has been delayed as a result of the impact of pandemic-related restrictions, we expect construction revenues to be generated 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 and EBITDA1 for this segment of $2.2 million and $7.9 million, respectively, each decreased by $5.7 million from the prior year’s quarter mostly as a result of the revenue impact of restructured carrier contracts.

Renewable Energy

Renewable Energy segment revenues are principally the result of the generation and sale of electric power generated by our commercial solar projects in India.   We ended the third 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 and EBITDA1 of $0.1 million and $0.4 million, respectively, each improved compared with the prior year’s quarter due to lower operating expenses.

____________________________

1See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at September 30, 2020 was $136.2 million. Net cash provided by operating activities was $71.6 million for the nine months ended September 30, 2020, compared with $56.8 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, partially offset by a current year increase in cash used for working capital.   For the nine months ended September 30, 2020, the Company used net cash of $97.6 million for investing and financing activities compared to $83.4 million for the prior year period. In the current year, the net use of cash was most significantly comprised of $50.7 million in capital expenditures, $20.4 million in purchases of FCC spectrum, $8.8 million of repurchases of non-controlling interests, $8.3 million of ATN share repurchases, $8.2 million of dividends on common stock and $6.5 million in minority partner distributions.     

Conference Call Information

ATN will host a conference call on Thursday, October 29, 2020 at 11:00 a.m. Eastern Time (ET) to discuss its third 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 6472418. A replay of the call will be available at ir.atni.com beginning at approximately 2:00 p.m. (ET) on October 29, 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 future revenue, operating income, EBITDA and capital expenditures; the competitive environment in our key markets, demand for our services and industry trends; 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, as amended by Amendment No. 1 to the Annual Report on Form 10-K filed with the SEC on April 29, 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 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)  
           
    September 30,   December 31,  
    2020 2019  
  Assets:        
  Cash and cash equivalents $ 135,153   $ 161,287  
  Restricted cash   1,072     1,071  
  Short-term investments   403     416  
  Other current assets   88,956     65,949  
           
  Total current assets   225,584     228,723  
           
  Property, plant and equipment, net   589,428     605,581  
  Operating lease right-of-use assets   64,294     68,763  
  Goodwill and other intangible assets, net   181,040     161,818  
  Other assets   53,068     65,841  
           
  Total assets $ 1,113,414   $ 1,130,726  
           
  Liabilities and Stockholders’ Equity:        
  Current portion of long-term debt $ 3,750   $ 3,750  
  Taxes payable   7,921     8,517  
  Current portion of lease liabilities   10,902     11,406  
  Other current liabilities   110,289     95,996  
           
  Total current liabilities   132,862     119,669  
           
  Long-term debt, net of current portion $ 79,973   $ 82,676  
  Deferred income taxes   2,602     8,680  
  Lease liabilities   53,543     56,164  
  Other long-term liabilities   49,836     57,454  
           
  Total liabilities   318,816     324,643  
           
  Total ATN International, Inc.’s stockholders’ equity   667,875     676,122  
  Non-controlling interests   126,723     129,961  
           
  Total equity   794,598     806,083  
           
  Total liabilities and stockholders’ equity $ 1,113,414   $ 1,130,726  

 

                   
                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,  
    2020   2019   2020   2019  
  Revenues:                
  Communications services $ 108,721     $ 112,840     $ 322,865     $ 318,473    
  Other   3,018       2,776       8,878       8,164    
  Total revenue   111,739       115,616       331,743       326,637    
                   
  Operating expenses:                
  Termination and access fees   26,979       27,622       83,562       83,440    
  Construction costs   390       -       390       -    
  Engineering and operations   18,127       20,095       53,983       58,234    
  Sales, marketing and customer service   9,344       9,785       28,220       29,048    
  General and administrative   25,735       25,110       75,413       75,518    
  Transaction-related charges   31       21       147       89    
  Depreciation and amortization   21,580       22,603       66,089       64,870    
  (Gain) loss on disposition of assets   (4 )     132       60       321    
  Total operating expenses   102,182       105,368       307,864       311,520    
                   
  Operating income   9,557       10,248       23,879       15,117    
                   
  Other income (expense):                
  Interest expense, net   (1,243 )     (884 )     (3,664 )     (1,983 )  
  Other income (expense)   (2,031 )     (2,686 )     (4,341 )     (2,755 )  
  Other income (expense), net   (3,274 )     (3,570 )     (8,005 )     (4,738 )  
                   
  Income before income taxes   6,283       6,678       15,874       10,379    
  Income tax (benefit) expense   92       1,834       (1,057 )     2,774    
                   
  Net Income   6,191       4,844       16,931       7,605    
                   
  Net income attributable to non-controlling interests, net   (3,530 )     (3,459 )     (10,538 )     (8,657 )  
                   
  Net income (loss) attributable to ATN International, Inc. stockholders $ 2,661     $ 1,385     $ 6,393     $ (1,052 )  
                   
  Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:                
                   
  Basic Net Income (Loss) $ 0.17     $ 0.09     $ 0.40     $ (0.07 )  
                   
                   
  Diluted Net Income (Loss) $ 0.17     $ 0.09     $ 0.40     $ (0.07 )  
                   
  Weighted average common shares outstanding:                
  Basic   15,962       16,000       15,946       15,984    
  Diluted   16,011       16,007       15,991       15,984    
                   
                   
  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)  
       
    Nine Months Ended September 30,  
    2020   2019  
           
  Net income $ 16,931     $ 7,605    
  Depreciation and amortization   66,089       64,870    
  Provision for doubtful accounts   4,452       3,796    
  (Gain) Loss on disposition of assets   60       321    
  Stock-based compensation   4,608       4,881    
  Deferred income taxes   (6,078 )     (6,287 )  
  Loss on investments   3,360       2,131    
  Change in prepaid and accrued income taxes   620       (13,889 )  
  Change in other operating assets and liabilities   (19,295 )     (7,262 )  
  Other non-cash activity   844       681    
           
  Net cash provided by operating activities   71,591       56,847    
           
  Capital expenditures   (50,662 )     (49,486 )  
  Purchases of intangible assets, including deposits   (20,396 )     -    
  Purchases of strategic investments   (2,768 )     (10,285 )  
  Purchase of short-term investments   (116 )     (8,028 )  
  Sale of strategic investments   11,969       -    
  Sale of short-term investments   -       5,141    
           
  Net cash used in investing activities   (61,973 )     (62,658 )  
           
  Dividends paid on common stock   (8,166 )     (8,160 )  
  Distributions to non-controlling interests   (6,503 )     (5,760 )  
  Principal repayments of term loan   (2,814 )     (2,825 )  
  Payment of debt issuance costs   (1,096 )     (1,340 )  
  Stock-based compensation share repurchases   (1,733 )     (1,607 )  
  Purchases of common stock - share buyback   (6,589 )     (162 )  
  Repurchases of non-controlling interests   (8,763 )     (1,353 )  
  Investments made by minority shareholders   -       488    
           
  Net cash used in financing activities   (35,664 )     (20,719 )  
           
  Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash   (87 )     (26 )  
           
  Net change in total cash, cash equivalents and restricted cash   (26,133 )     (26,556 )  
           
  Total cash, cash equivalents and restricted cash, beginning of period   162,358       192,907    
           
  Total cash, cash equivalents and restricted cash, end of period $ 136,225     $ 166,351    

 

          Table 4  
ATN International, Inc.  
Selected Segment Financial Information  
(In Thousands)  
             
For the three months ended September 30, 2020 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
             
Statement of Operations Data:            
Revenue**            
Mobility $ 21,406   $ 2,432   $ -   $ -   $ 23,838    
Fixed   57,364     5,419     -     -     62,783    
Carrier services   1,851     19,852     -     -     21,703    
Other   397     -     -     -     397    
Total communications services $ 81,018   $ 27,703   $ -   $ -   $ 108,721    
             
Renewable Energy $ -   $ -   $ 1,177   $ -   $ 1,177    
Managed Services   1,447     -     -     -     1,447    
Construction   -     394     -     -     394    
Total Other $ 1,447   $ 394   $ 1,177   $ -   $ 3,018    
             
Total Revenue $ 82,465   $ 28,097   $ 1,177   $ -   $ 111,739    
             
Operating Income (Loss) $ 16,024   $ 2,218   $ (98 ) $ (8,587 ) $ 9,557    
Stock-based compensation   29     -     66     1,792     1,887    
Non-controlling interest ( net income or (loss) ) $ (2,762 ) $ (786 ) $ 18   $ -   $ (3,530 )  
             
Non GAAP measures:            
EBITDA (1) $ 29,695   $ 7,947   $ 393   $ (6,898 ) $ 31,137    
Adjusted EBITDA (2) $ 29,695   $ 7,943   $ 393   $ (6,867 ) $ 31,164    
             
Balance Sheet Data (at September 30, 2020):            
Cash, cash equivalents and investments $ 67,701   $ 25,177   $ 22,376   $ 20,302   $ 135,556    
Total current assets   124,515     59,801     25,290     15,978     225,584    
Fixed assets, net   452,303     77,017     45,773     14,335     589,428    
Total assets   664,307     233,288     71,757     144,062     1,113,414    
Total current liabilities   71,254     36,898     909     23,801     132,862    
Total debt   83,723     -     -     -     83,723    
             
* 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 September 30, 2019 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
             
Statement of Operations Data:            
Revenue**            
Mobility $ 21,364   $ 2,601   $ -   $ -   $ 23,965    
Fixed   55,845     4,304     -     -     60,149    
Carrier services   2,403     25,988     -     -     28,391    
Other   335     -     -     -     335    
Total communications services $ 79,947   $ 32,893   $ -   $ -   $ 112,840    
             
Renewable Energy $ -   $ -   $ 1,438   $ -   $ 1,438    
Managed Services   1,338     -     -     -     1,338    
Total Other $ 1,338   $ -   $ 1,438   $ -   $ 2,776    
             
Total Revenue $ 81,285   $ 32,893   $ 1,438   $ -   $ 115,616    
             
Operating Income (Loss) $ 10,867   $ 7,912   $ (714 ) $ (7,817 ) $ 10,248    
Stock-based compensation   285     -     -     1,263     1,548    
Non-controlling interest ( net income or (loss) ) $ (2,154 ) $ (1,342 ) $ 37   $ -   $ (3,459 )  
             
Non GAAP measures:            
EBITDA (1) $ 24,956   $ 13,682   $ 302   $ (6,089 ) $ 32,851    
Adjusted EBITDA (2) $ 24,956   $ 13,779   $ 337   $ (6,068 ) $ 33,004    
             
* 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 nine months ended September 30, 2020 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
Statement of Operations Data:            
Revenue**            
Mobility $ 60,604   $ 7,203   $ -   $ -   $ 67,807    
Fixed   172,420     15,181     -     -     187,601    
Carrier services   5,392     60,779     -     -     66,171    
Other   1,286     -     -     -     1,286    
Total communications services $ 239,702   $ 83,163   $ -   $ -   $ 322,865    
             
Renewable Energy $ -   $ -   $ 3,374   $ -   $ 3,374    
Managed Services   5,110     -     -     -     5,110    
Construction   -     394     -     -     394    
Total Other $ 5,110   $ 394   $ 3,374   $ -   $ 8,878    
             
Total Revenue $ 244,812   $ 83,557   $ 3,374   $ -   $ 331,743    
             
Operating Income (Loss) $ 44,119   $ 6,241   $ (1,175 ) $ (25,306 ) $ 23,879    
Stock-based compensation   20     -     197     4,391     4,608    
Non-controlling interest ( net income or (loss) ) $ (7,770 ) $ (2,880 ) $ 112   $ -   $ (10,538 )  
             
Non GAAP measures:            
EBITDA (1) $ 86,239   $ 23,572   $ 415   $ (20,258 ) $ 89,968    
Adjusted EBITDA (2) $ 86,252   $ 23,573   $ 545   $ (20,195 ) $ 90,175    
             
* 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 nine months ended September 30, 2019 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
             
Statement of Operations Data:            
Revenue**            
Mobility $ 62,766   $ 8,095   $ -   $ -   $ 70,861    
Fixed   166,925     9,885     -     -     176,810    
Carrier services   6,970     62,820     -     -     69,790    
Other   1,012     -     -     -     1,012    
Total communications services $ 237,673   $ 80,800   $ -   $ -   $ 318,473    
             
Renewable Energy $ -   $ -   $ 4,376   $ -   $ 4,376    
Managed Services   3,788     -     -     -     3,788    
Total Other $ 3,788   $ -   $ 4,376   $ -   $ 8,164    
             
Total Revenue $ 241,461   $ 80,800   $ 4,376   $ -   $ 326,637    
             
Operating Income (Loss) $ 35,802   $ 5,927   $ (750 ) $ (25,862 ) $ 15,117    
Stock-based compensation   306     -     -     4,575     4,881    
Non-controlling interest ( net income or (loss) ) $ (6,810 ) $ (1,864 ) $ 17   $ -   $ (8,657 )  
             
Non GAAP measures:            
EBITDA (1) $ 76,511   $ 22,846   $ 1,519   $ (20,889 ) $ 79,987    
Adjusted EBITDA (2) $ 76,497   $ 23,007   $ 1,693   $ (20,800 ) $ 80,397    
             
* 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 September 30, 2020  
             
  Quarter ended  
  September 30, December 31, March 31, June 30, September 30,  
  2019 2019 2020 2020 2020  
             
International Telecom Operational Data:            
Mobile - Subscribers *   285,000     284,100     282,100     276,400     289,100    
Fixed - Data Subscribers *   124,700     127,500     131,300     135,500     137,500    
Fixed - Video Subscribers *   38,900     38,400     38,100     36,400     35,800    
Fixed - Voice   164,900     164,800     166,700     167,100     167,900    
             
* 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 September 30, 2020 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
             
             
Operating income (loss) $ 16,024   $ 2,218   $ (98 ) $ (8,587 ) $ 9,557    
Depreciation and amortization expense   13,671     5,729     491     1,689     21,580    
EBITDA $ 29,695   $ 7,947   $ 393   $ (6,898 )   31,137    
             
Transaction-related charges   -     -     -     31     31    
(Gain) Loss on disposition of assets   -     (4 )   -     -     (4 )  
ADJUSTED EBITDA $ 29,695   $ 7,943   $ 393   $ (6,867 )   31,164    
             
Revenue   82,465     28,097     1,177     -     111,739    
ADJUSTED EBITDA MARGIN   36.0 %   28.3 %   33.4 %   NA     27.9 %  
             
             
For the three months ended September 30, 2019 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
             
             
Operating income (loss) $ 10,867   $ 7,912   $ (714 ) $ (7,817 ) $ 10,248    
Depreciation and amortization expense   14,089     5,770     1,016     1,728     22,603    
EBITDA $ 24,956   $ 13,682   $ 302   $ (6,089 )   32,851    
             
Transaction-related charges   -     -     -     21     21    
(Gain) Loss on disposition of assets   -     97     35     -     132    
ADJUSTED EBITDA $ 24,956   $ 13,779   $ 337   $ (6,068 )   33,004    
             
Revenue   81,285     32,893     1,438     -     115,616    
ADJUSTED EBITDA MARGIN   30.7 %   41.9 %   23.4 %   NA     28.5 %  
             
             
             
             
             
             
ATN International, Inc.  
Reconciliation of Non-GAAP Measures  
(In Thousands)  
             
For the nine months ended September 30, 2020 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
             
             
Operating income (loss) $ 44,119   $ 6,241   $ (1,175 ) $ (25,306 ) $ 23,879    
Depreciation and amortization expense   42,120     17,331     1,590     5,048     66,089    
EBITDA $ 86,239   $ 23,572   $ 415   $ (20,258 )   89,968    
             
Transaction-related charges   -     -     84     63     147    
(Gain) Loss on disposition of assets   13     1     46     -     60    
ADJUSTED EBITDA $ 86,252   $ 23,573   $ 545   $ (20,195 )   90,175    
             
Revenue   244,812     83,557     3,374     -     331,743    
ADJUSTED EBITDA MARGIN   35.2 %   28.2 %   16.2 %   NA     27.2 %  
             
             
             
             
For the nine months ended September 30, 2019 is as follows:  
             
  International
Telecom
US Telecom  Renewable
Energy
Corporate
and Other *
Total  
             
             
Operating income (loss) $ 35,802   $ 5,927   $ (750 ) $ (25,862 ) $ 15,117    
Depreciation and amortization expense   40,709     16,919     2,269     4,973     64,870    
EBITDA $ 76,511   $ 22,846   $ 1,519   $ (20,889 )   79,987    
             
Transaction-related charges   -     -     -     89     89    
(Gain) Loss on disposition of assets   (14 )   161     174     -     321    
ADJUSTED EBITDA $ 76,497   $ 23,007   $ 1,693   $ (20,800 )   80,397    
             
Revenue   241,461     80,800     4,376     -     326,637    
ADJUSTED EBITDA MARGIN   31.7 %   28.5 %   38.7 %   NA     24.6 %  

 

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.