Press Releases

Oct 27, 2021

ATN Reports Third Quarter 2021 Results

Alaska Communications Acquisition Drives 49% Year-on-Year Consolidated Revenue Growth

  • International Telecom Continues to Generate Subscriber and Revenue Growth

Alaska Communications Performed in Line with Expectations

Expanding Domestic Network Reach to Grow High Speed Data Revenue and Customers 

BEVERLY, Mass., Oct. 27, 2021 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the third quarter and nine months ended September 30, 2021.

Business Review and Outlook

Michael Prior, Chief Executive Officer, commented, “The Alaska Communications acquisition has significantly increased the scale of ATN’s domestic operations and has opened additional opportunities for us to pursue growth initiatives that also provide significant social and economic benefits by bringing high speed connectivity to the communities we serve.

“The addition of approximately ten weeks of Alaska Communications operations was the major driver of a nearly three-fold increase in our US Telecom segment revenues, with fiber-based services to enterprise, government, wholesale and residential customers representing the majority of that growth.  Higher FirstNet construction revenues also contributed to the increase. Additionally, we experienced growth in our legacy domestic business in the western U.S. due to higher consumer broadband revenues following our late 2020 build out of rural broadband networks under various government programs and public-private initiatives.  ATN now owns and operates approximately 6,000 fiber route miles in the U.S., and with more federal government funding becoming available to help connect rural communities to true high speed data access, we have allocated additional resources to capture opportunities to build-out rural middle mile fiber networks and fiber and fixed wireless connections. This is a priority for the strategic transformation of our legacy domestic wholesale roaming business into a broader fiber-based communications platform, and it is in keeping with our corporate mission of bringing reliable and affordable access to the modern communications infrastructure to historically underbuilt areas.

“International Telecom revenue increased in the third quarter, reflecting the positive performance of several of our key international markets, where upgrades and expansions of our networks and effective marketing campaigns have resulted in continued subscriber growth. We are pleased with the third quarter and year-to-date revenue performance of this segment and see additional growth opportunities on the horizon. Higher expense levels in part reflected a difficult comparison with the unusually low operating costs we had during the pandemic and increased regulatory costs. While supply chain disruptions have not had a material effect on our business year-to-date, we continue to monitor this potential given its impact on other communications infrastructure and technology companies.

“Looking ahead, we see opportunities to drive additional revenue growth in both of our business segments. We are continuing to expand our networks and offerings in several of our International Telecom markets   where we see the potential to increase penetration and market share.  Domestically, in addition to rural network buildouts in the “lower 48”, we continue to upgrade and extend our fiber network in Alaska, adding wholesale, enterprise and residential connections to grow our customer base utilizing that expanded network reach and capability,” Mr. Prior noted.

Third Quarter 2021 Results

Third quarter 2021 consolidated revenues of $166.8 million were up 49% compared to the prior year quarter’s revenue of $111.7 million.  The Company closed the acquisition of Alaska Communications in late July, which contributed $46.8 million to third quarter revenues.  The third quarter of 2021 had an operating loss of $1.0 million and Adjusted EBITDA2 of $36.8 million, compared with the prior year quarter’s operating income of $9.6 million and Adjusted EBITDA2 of $31.2 million.  The decrease in operating income was mostly the result of increased transaction-related fees and amortization expenses from the consolidation of Alaska Communications results.  The Adjusted EBITDA2 increase was due to the addition of $10.6 million from Alaska Communications, partially offset by a net decline in the International Telecom segment.  The net loss attributable to ATN’s stockholders for the third quarter was $2.6 million, and a $0.22 loss per share, compared with the prior year period’s net income attributable to ATN’s stockholders of $2.7 million, or $0.17 income per diluted share.

Third Quarter 2021 Operating Highlights
The Company recorded financial results during the third quarter of 2021 in three categories: (i) International Telecom; (ii) US Telecom; and (iii) All Other.  For the purposes of the below presentation, the Company’s Renewable Energy segment has been combined with Corporate and Other as “All Other”.

The Company completed its acquisition of Alaska Communications on July 22, 2021, and the consolidated results are included in the Company’s US Telecom segment.  

Operating Results (in Thousands)

Three Months Ended September 30, 2021
         
   International  US   Total 
  Telecom Telecom All Other* ATN
Revenue $ 85,306 $ 81,454   $ 0   $ 166,760  
Operating Income (Loss) $ 13,213 $ (9,830 ) $ (4,365 ) $ (982 )
EBITDA1 $ 26,940 $ 7,559   $ (3,126 ) $ 31,373  
Adjusted EBITDA2 $ 26,872 $ 16,404   $ (6,463 ) $ 36,813  
Capital Expenditures** $ 10,642 $ 17,364   $ 983   $ 28,989  


Nine Months Ended September 30, 2021
         
   International US    Total 
  Telecom Telecom All Other* ATN
Revenue $ 255,342 $ 159,375   $ 418   $ 415,135  
Operating Income (Loss) $ 40,999 $ (10,920 ) $ (24,808 ) $ 5,271  
EBITDA1 $ 82,341 $ 16,740   $ (20,793 ) $ 78,288  
Adjusted EBITDA2 $ 82,276 $ 23,820   $ (19,380 ) $ 86,716  
Capital Expenditures** $ 32,485 $ 36,157   $ 2,280   $ 70,922  


Three Months Ended September 30, 2020
         
   International  US   Total 
  Telecom Telecom All Other* ATN
Revenue $ 82,465 $ 28,097   $ 1,177   $ 111,739  
Operating Income (Loss) $ 16,024 $ 2,218   $ (8,685 ) $ 9,557  
EBITDA1 $ 29,695 $ 7,947   $ (6,505 ) $ 31,137  
Adjusted EBITDA2 $ 29,695 $ 7,943   $ (6,474 ) $ 31,164  
Capital Expenditures** $ 8,510 $ 8,371   $ 1,816   $ 18,697  


Nine Months Ended September 30, 2020
         
   International  US    Total
  Telecom Telecom All Other* ATN
Revenue $ 244,812 $ 83,557   $ 3,374   $ 331,743  
Operating Income (Loss) $ 44,119 $ 6,241   $ (26,481 ) $ 23,879  
EBITDA1 $ 86,239 $ 23,572   $ (19,843 ) $ 89,968  
Adjusted EBITDA2 $ 86,252 $ 23,573   $ (19,650 ) $ 90,175  
Capital Expenditures** $ 28,439 $ 17,254   $ 4,969   $ 50,662  

*For this table presentation, the Renewable Energy segment and Corporate and Other results were combined.  See table 4 for the separate presentation of the financial performance of these items.

**Includes capital expenditures reimbursable from customers of $2,192 and $8,700 for the three and nine months ended September 30, 2021, respectively and $502 and $1,870 for the three and nine months ended September 30, 2020, respectively.

International Telecom 

International Telecom revenues are generated by delivery of a broad range of communications and managed IT services, including data, voice and video services from the Company’s fixed and mobile network operations in Bermuda and the Caribbean, and include direct government payments as part of the FCC high-cost support program in the USVI.  International Telecom revenues were $85.3 million for the quarter, a 3% increase year-on-year mainly due to subscriber and ARPU growth which drove increases in mobility and fixed revenues in multiple markets, partially offset by the loss of $1.4 million in FCC high-cost support in the USVI.  Carrier services revenues also increased as travel and tourism increased in the U.S. Virgin Islands.  Operating expenses increased in most of the markets compared with the prior year as operating expenses returned to normalized pre-pandemic levels and due to the introduction of higher regulatory fees in Guyana earlier in 2021.  As a result, when compared with the prior year quarter, operating income of $13.2 million and Adjusted EBITDA2 of $26.9 million decreased by 18% and 10%, respectively, for the third quarter of 2021.

US Telecom 

US Telecom revenues consist of broadband, carrier services, managed IT services, fixed enterprise, and mobile retail revenues from the Company’s networks and operations in Alaska and in the western United States, including various government programs such as CAF II, E-Rate, Lifeline and rural healthcare support programs.  US Telecom segment revenues were $81.5 million in the quarter, up $53.4 million from the prior year period.  This increase was mostly due to the addition of $46.8 million of revenues from Alaska Communications, as well as $6.0 million of increased construction revenue related to the FirstNet contract build.  Adjusted EBITDA2 for the quarter was $16.4 million compared to the prior year period’s Adjusted EBITDA2 of $7.9 million.  This increase was driven by the addition of the Alaska Communications results of $10.6 million partially offset by approximately $2.0 million of additional expenses in our private network operations. For the segment, the current period’s operating loss was $9.8 million compared to the prior year’s operating income of $2.2 million, primarily due to $8.8 million of transaction-related fees and amortization expense related to the Alaska Communications acquisition and the additional expenses in our private network operations.  

By the end of the third quarter of 2021, the Company had completed and activated approximately 50% of the total sites related to the network build portion of its FirstNet Agreement and expects to complete an additional 15% of the total build by the end of 2021.  Revenues from the build will continue to be largely offset by construction costs. 

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash on September 30, 2021 totaled $102.4 million.  On July 22, 2021 the Company completed the acquisition of Alaska Communications for approximately $339.5 million.  The acquisition was funded through a draw under the Company’s existing revolving credit facility of which $65.0 million is outstanding, an equity contribution from our financial partner and proceeds from Alaska Communications new credit agreement that is non-recourse to the Company.  At the end of the quarter, Alaska Communications had outstanding a $210.0 million term loan facility and $10.0 million drawn under its $35.0 million revolving facility. 

Net cash provided by operating activities was $47.7 million for the nine months ended September 30, 2021, compared with $71.6 million for the prior year period.  The decline in operating cash flow compared with the prior year is mostly the result of a current year decrease in operating income and a $25.7 million increase in the FirstNet construction customer receivable.   For the nine months ended September 30, 2021, the Company used net cash of $50.3 million for investing and financing activities compared to $97.6 million for the prior year period.  The net use of cash was primarily attributable to $339.5 million used to purchase Alaska Communications offset by net borrowings of $285.0 million and $71.5 million of partner equity contributions, mentioned above, $70.9 million in capital expenditures, $13.1 million of purchases of minority equity interests in our subsidiaries, $13.0 million in repurchases of Company common stock and dividends to Company stockholders, and $4.8 million in minority partner distributions.  These uses of cash were partially offset by $7.1 million in grants received, $18.6 million in net proceeds received from the completion of the Vibrant Energy equity sale and $27.5 million in new borrowings under the FirstNet receivables credit facility. 

Conference Call Information

ATN will host a conference call on Thursday, October 28, 2021 at 10:00 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 7087676. A replay of the call will be available at ir.atni.com beginning at approximately 1:00 p.m. (ET) on Thursday, October 28, 2021.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, operates communications and technology businesses in the United States and internationally, including the Caribbean region, with a particular focus on markets with a need for growing demand for infrastructure investments and technology improvements. Our operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential and business customers, including a range of high-speed internet and data services, fixed and mobile wireless solutions, video and voice services, and (ii) carrier and enterprise communication services, wholesale communications infrastructure services such as terrestrial and submarine fiber optic transport, communications tower facilities, managed mobile networks, and in-building wireless 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, and on our business and operations; expectations regarding future revenues, operating income, EBITDA and capital expenditures; the competitive environment in our key markets, demand for our services and industry trends; our expectations regarding construction progress under our FirstNet agreement and the effect such progress will have on our financial results; our expectations regarding the benefits of our acquisition of Alaska Communications; the impact of federal support program revenues; our liquidity; the organization of our business; 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 retention of and future growth of our subscriber base, including growth in our private networks business; (2) our ability to successfully integrate our newly acquired Alaska Communications business with our own and realize cost synergies and expansion plans; (3) our ability to satisfy the needs and demands of our major wireless customers; (4) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address rapid and significant technological changes in the telecommunications industry; (5) government regulation of our businesses, which may impact our telecommunications licenses, our revenue and our operating costs; (6) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (7) economic, political and other risks and opportunities facing our operations, including those resulting from the pandemic; (8) the loss of, or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (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 and our ability to secure the appropriate level of insurance coverage for these assets; (11) increased competition;  (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; and (13) our continued access to capital and credit markets.  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, 2020, filed with the SEC on March 1, 2021, those set forth under Item 1A “Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, filed with the SEC on August 9, 2021 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, the Company has included EBITDA and Adjusted EBITDA in this release and in the tables included herein. 

EBITDA is defined as operating income (loss) before depreciation and amortization expense.   The Company has defined Adjusted EBITDA as operating income (loss) before depreciation and amortization expense, transaction-related charges and the gain (loss) on disposition of assets. The Company believes that the inclusion of these non-GAAP financial measures help investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. Management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release.  While non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating the Company’s own operating results over different periods of time, the Company urges investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

 
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
       
  September 30,   December 31,
2021 2020
Assets:      
   Cash and cash equivalents $ 101,268   $ 103,925
   Restricted cash   1,096     1,072
   Assets held-for-sale   -     34,735
   Customer receivable   3,430     1,227
   Other current assets   143,911     99,106
       
   Total current assets   249,705     240,065
       
   Property, plant and equipment, net   915,834     536,462
   Operating lease right-of-use assets   122,422     63,235
   Customer receivable - long term   33,096     9,614
   Goodwill and other intangible assets, net   228,985     181,769
   Other assets   77,342     52,566
       
Total assets $ 1,627,384   $ 1,083,711
       
Liabilities, Mezzanine Equity and Stockholders’ Equity:      
   Current portion of long-term debt $ 3,762   $ 3,750
   Current portion of customer receivable credit faciity   3,295     -
   Taxes payable   9,350     7,501
   Current portion of lease liabilities   14,256     12,371
   Liabilities held-for-sale   -     717
   Other current liabilities   172,347     123,589
   Total current liabilities   203,010     147,928
       
   Long-term debt, net of current portion $ 345,073   $ 69,073
   Customer receivable credit facility, net of current portion   22,486     -
   Deferred income taxes   21,776     10,675
   Lease liabilities   96,031     51,082
   Other long-term liabilities   135,614     50,617
       
Total liabilities   823,990     329,375
       
Mezzanine Equity   71,820     -
       
Stockholders' Equity      
   Total ATN International, Inc.’s stockholders’ equity   629,292     645,649
   Non-controlling interests   102,282     108,687
       
Total stockholders' equity   731,574     754,336
       
Total liabilities, mezzanine equity and stockholders’ equity $ 1,627,384   $ 1,083,711
       



              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,
    2021       2020       2021       2020  
Revenues:              
   Communications services $ 155,298     $ 108,721     $ 378,897     $ 322,865  
   Other   11,462       3,018       36,238       8,878  
   Total revenue   166,760       111,739       415,135       331,743  
               
Operating expenses (excluding depreciation and amortization unless otherwise indicated):              
   Cost of services   70,732       45,106       168,717       137,545  
   Cost of construction revenue   5,855       390       27,997       390  
   Selling, general and administrative   53,360       35,079       131,705       103,633  
   Transaction-related charges   5,696       31       7,823       147  
   Depreciation   28,875       21,157       68,693       64,705  
   Amortization of intangibles from acquisitions   3,480       423       4,324       1,384  
   (Gain) loss on disposition of long-lived assets   (256 )     (4 )     605       60  
Total operating expenses   167,742       102,182       409,864       307,864  
               
Operating income (loss)   (982 )     9,557       5,271       23,879  
               
Other income (expense):              
   Interest expense, net   (3,396 )     (1,243 )     (5,640 )     (3,664 )
   Other income (expense)   (385 )     (2,031 )     1,923       (4,341 )
   Other income (expense), net   (3,781 )     (3,274 )     (3,717 )     (8,005 )
               
Income (loss) before income taxes   (4,763 )     6,283       1,554       15,874  
   Income tax expense (benefit)   (288 )     92       (1,535 )     (1,057 )
               
Net Income (loss)   (4,475 )     6,191       3,089       16,931  
               
Net (income) loss attributable to non-controlling interests, net   1,856       (3,530 )     (986 )     (10,538 )
               
Net income (loss) attributable to ATN International, Inc. stockholders $ (2,619 )   $ 2,661     $ 2,103     $ 6,393  
               
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:              
               
  Basic Net Income $ (0.22 )   $ 0.17     $ 0.08     $ 0.40  
               
               
  Diluted Net Income $ (0.22 )   $ 0.17     $ 0.08     $ 0.40  
               
Weighted average common shares outstanding:              
   Basic   15,860       15,962       15,891       15,946  
Diluted   15,860       16,011       15,901       15,991  
               



Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
   
  Nine Months Ended September 30,
    2021       2020  
       
   Net income $ 3,089     $ 16,931  
   Depreciation   68,693       64,705  
   Amortization of intangibles from acquisitions   4,324       1,384  
   Provision for doubtful accounts   3,303       4,452  
   Amortization of debt discount and debt issuance costs   767       395  
   Loss on disposition of assets and assets held-for-sale   605       60  
   Stock-based compensation   5,116       4,608  
   Deferred income taxes   (5,939 )     (6,078 )
   (Gain) loss on equity investments   (647 )     3,360  
   Unrealized (gain) loss on foreign currency   (81 )     449  
   Increase in customer receivable   (25,684 )     -  
   Change in prepaid and accrued income taxes   (2,106 )     620  
   Change in other operating assets and liabilities   (3,724 )     (19,295 )
       
       Net cash provided by operating activities   47,716       71,591  
       
   Capital expenditures   (62,222 )     (48,792 )
   Reimbursable capital expenditures   (8,700 )     (1,870 )
   Purchase of businesses, net of $11.9 million of acquired cash   (340,152 )     -  
   Purchases of intangible assets, including deposits   -       (20,396 )
   Purchases of strategic investments   (6,399 )     (2,768 )
   Purchases of short-term investments   -       (116 )
   Receipt of government grants   7,094       -  
   Proceeds from strategic investments   -       11,969  
   Sale of business, net of transferred cash of $0.9 million and $0 million, respectively   18,597       -  
       
       Net cash used in investing activities   (391,782 )     (61,973 )
       
   Dividends paid on common stock   (8,118 )     (8,166 )
   Distributions to non-controlling interests   (4,823 )     (6,503 )
   Principal repayments of term loan   (2,821 )     (2,814 )
   New borrowings, net of repayments   285,000       -  
   Proceeds from mezzanine equity   71,533       -  
   Payment of debt issuance costs   (6,568 )     (1,096 )
   Proceeds from customer receivable credit facility   27,540       -  
   Repayment of customer receivable credit facility   (1,005 )     -  
   Purchases of common stock - stock-based compensation   (1,713 )     (1,733 )
   Proceeds from stock option exercises   383       -  
   Purchases of common stock - share repurchase plan   (4,836 )     (6,589 )
   Repurchases of non-controlling interests   (13,139 )     (8,763 )
       
       Net cash provided by (used in) financing activities   341,433       (35,664 )
       
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash   -       (87 )
       
Net change in total cash, cash equivalents and restricted cash   (2,633 )     (26,133 )
       
Total cash, cash equivalents and restricted cash, beginning of period   104,997       162,358  
       
Total cash, cash equivalents and restricted cash, end of period $ 102,364     $ 136,225  
       



          Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
           
For the three months ended September 30, 2021 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue          
   Mobility          
        Business $ 1,422   $ 231   $ -   $ -   $ 1,653  
        Consumer   22,423     1,909     -     -     24,332  
        Total $ 23,845   $ 2,140   $ -   $ -   $ 25,985  
           
   Fixed          
        Business $ 16,549   $ 21,681   $ -   $ -   $ 38,230  
        Consumer   40,870     15,484     -     -     56,354  
        Total $ 57,419   $ 37,165   $ -   $ -   $ 94,584  
           
  Carrier Services $ 2,557   $ 31,939   $ -   $ -   $ 34,496  
  Other   233     -     -     -     233  
           
Total Communications Services $ 84,054   $ 71,244   $ -   $ -   $ 155,298  
           
  Managed services $ 1,252   $ 3,793   $ -   $ -   $ 5,045  
  Construction   -     6,417     -     -     6,417  
           
Total Other $ 1,252   $ 10,210   $ -   $ -   $ 11,462  
           
Total Revenue $ 85,306   $ 81,454   $ -   $ -   $ 166,760  
           
Depreciation $ 13,308   $ 14,327   $ -   $ 1,240   $ 28,875  
Amortization of intangibles from acquisitions $ 418   $ 3,062   $ -   $ -   $ 3,480  
Total operating expenses $ 72,093   $ 91,284   $ 55   $ 4,310   $ 167,742  
Operating Income (Loss) $ 13,213   $ (9,830 ) $ (55 ) $ (4,310 ) $ (982 )
Stock-based compensation $ 36   $ 101   $ -   $ 1,468   $ 1,605  
Non-controlling interest ( net income or (loss) ) $ (2,337 ) $ 4,193   $ -   $ -   $ 1,856  
           
Non GAAP measures:          
EBITDA (1) $ 26,939   $ 7,559   $ (55 ) $ (3,070 ) $ 31,373  
Adjusted EBITDA (2) $ 26,872   $ 16,404   $ (56 ) $ (6,407 ) $ 36,813  
           
Balance Sheet Data (at September 30, 2021):          
Cash, cash equivalents and investments $ 52,106   $ 38,143   $ 2,476   $ 8,543   $ 101,268  
Total current assets   116,271     116,852     6,322     10,260     249,705  
Fixed assets, net   448,062     457,154     -     10,618     915,834  
Total assets   650,023     870,281     20,500     86,580     1,627,384  
Total current liabilities   84,092     93,612     356     24,950     203,010  
Total debt   70,142     239,474     -     65,000     374,616  
           
* 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, 2020 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue          
   Mobility          
        Business $ 1,108   $ 136   $ -   $ -   $ 1,244  
        Consumer   20,298     2,296     -     -     22,594  
        Total $ 21,406   $ 2,432   $ -   $ -   $ 23,838  
           
   Fixed          
        Business $ 16,516   $ 1,954   $ -   $ -   $ 18,470  
        Consumer   40,848     3,465     -     -     44,313  
        Total $ 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  
           
Depreciation $ 13,248   $ 5,729   $ 491   $ 1,689   $ 21,157  
Amortization of intangibles from acquisitions $ 423   $ -   $ -   $ -   $ 423  
Total operating expenses $ 66,441   $ 25,879   $ 1,275   $ 8,587   $ 102,182  
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  
           
* 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, 2021 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue          
   Mobility          
        Business $ 3,917   $ 1,149   $ -   $ -   $ 5,066  
        Consumer   64,503     6,258     -     -     70,761  
        Total $ 68,420   $ 7,407   $ -   $ -   $ 75,827  
           
   Fixed          
        Business $ 50,037   $ 26,409   $ -   $ -   $ 76,446  
        Consumer   125,255     23,004     -     -     148,259  
        Total $ 175,292   $ 49,413   $ -   $ -   $ 224,705  
           
  Carrier Services $ 6,963   $ 70,713   $ -   $ -   $ 77,676  
  Other   689     -     -     -     689  
           
Total Communications Services $ 251,364   $ 127,533   $ -   $ -   $ 378,897  
           
   Renewable Energy $ -   $ -   $ 418   $ -   $ 418  
  Managed services   3,978     3,793     -     -     7,771  
  Construction   -     28,049     -     -     28,049  
           
Total Other $ 3,978   $ 31,842   $ 418   $ -   $ 36,238  
           
Total Revenue $ 255,342   $ 159,375   $ 418   $ -   $ 415,135  
           
Depreciation $ 40,080   $ 24,598   $ 188   $ 3,827   $ 68,693  
Amortization of intangibles from acquisitions $ 1,262   $ 3,062   $ -   $ -   $ 4,324  
Total operating expenses $ 214,343   $ 170,295   $ 1,906   $ 23,320   $ 409,864  
Operating Income (Loss) $ 40,999   $ (10,920 ) $ (1,488 ) $ (23,320 ) $ 5,271  
Stock-based compensation $ 83   $ -   $ 22   $ 4,911   $ 5,016  
Non-controlling interest ( net income or (loss) ) $ (5,857 ) $ 4,075   $ 796   $ -   $ (986 )
           
Non GAAP measures:          
EBITDA (1) $ 82,341   $ 16,740   $ (1,300 ) $ (19,493 ) $ 78,288  
Adjusted EBITDA (2) $ 82,276   $ 23,820   $ (110 ) $ (19,270 ) $ 86,716  
           
* 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, 2020 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
Statement of Operations Data:          
Revenue          
   Mobility          
        Business $ 3,136   $ 140   $ -   $ -   $ 3,276  
        Consumer   57,468     7,063     -     -     64,531  
        Total $ 60,604   $ 7,203   $ -   $ -   $ 67,807  
           
   Fixed          
        Business $ 51,115   $ 6,676   $ -   $ -   $ 57,791  
        Consumer   121,305     8,505     -     -     129,810  
        Total $ 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  
           
Depreciation $ 40,736   $ 17,331   $ 1,590   $ 5,048   $ 64,705  
Amortization of intangibles from acquisitions $ 1,384   $ -   $ -   $ -   $ 1,384  
Total operating expenses $ 200,693   $ 77,316   $ 4,549   $ 25,306   $ 307,864  
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    
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at December 31, 2020
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Balance Sheet Data (at December 31, 2020):          
Cash, cash equivalents and investments $ 45,848   $ 26,921   $ 4,311   $ 26,845   $ 103,925  
Total current assets   107,315     65,806     39,057     27,887     240,065  
Fixed assets, net   449,888     73,717     -     12,857     536,462  
Total assets   642,834     265,797     39,045     136,035     1,083,711  
Total current liabilities   80,875     43,200     1,038     22,815     147,928  
Total debt   72,823     -     -     -     72,823  
           
           
(1) See Table 5 for reconciliation of Operating Income to EBITDA        
(2) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA      
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments    
           
           
           
ATN International, Inc.
Selected Segment Operational Information
(In Thousands)
at September 30, 2021
           
  Quarter ended
  September 30, December 31, March 31, June 30, September 30,
    2020     2020     2021     2021     2021  
           
International Telecom Operational Data:          
           
Mobile - Subscribers *          
   Pre-Paid   244,700     257,200     261,900     273,400     276,400  
   Post-Paid   43,100     44,700     45,500     46,400     49,300  
   Total   287,800     301,900     307,400     319,800     325,700  
           
Mobile - Churn   1.77 %   2.18 %   2.28 %   2.21 %   2.67 %
           
Fixed - Subscribers*          
   Broadband   136,800     140,100     142,900     143,000     143,900  
   Video   35,800     35,800     35,300     33,600     33,100  
   Voice   163,700     164,300     165,500     165,800     166,200  
           
           
* 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 September 30, 2021 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Operating income (loss) $ 13,213   $ (9,830 ) $ (55 ) $ (4,310 ) $ (982 )
Depreciation expense   13,308     14,327     -     1,240     28,875  
Amortization of intangibles from acquisitions   418     3,062     -     -     3,480  
EBITDA $ 26,939   $ 7,559   $ (55 ) $ (3,070 ) $ 31,373  
           
Transaction-related charges   -     9,033     -     (3,337 ) $ 5,696  
(Gain) Loss on disposition of assets   (67 )   (188 )   (1 )   -   $ (257 )
ADJUSTED EBITDA $ 26,872   $ 16,404   $ (56 ) $ (6,407 ) $
36,813  
           
Revenue   85,306     81,454     -     -     166,760  
ADJUSTED EBITDA MARGIN   31.5 %   20.1 % NA NA   22.1 %
           
           
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 expense   13,248     5,729     491     1,689     21,157  
Amortization of intangibles from acquisitions   423     -     -     -     423  
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 %
           
           
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
           
For the nine months ended September 30, 2021 is as follows:
           
  International Telecom  US Telecom  Renewable Energy Corporate and Other * Total
           
           
Operating income (loss) $ 40,999   $ (10,920 ) $ (1,488 ) $ (23,320 ) $ 5,271  
Depreciation expense   40,080     24,598     188     3,827     68,693  
Amortization of intangibles from acquisitions   1,262     3,062     -     -     4,324  
EBITDA $ 82,341   $ 16,740   $ (1,300 ) $ (19,493 ) $ 78,288  
           
Transaction-related charges   -     7,257     566     -     7,823  
(Gain) Loss on disposition of assets   (65 )   (177 )   624     223     605  
ADJUSTED EBITDA $ 82,276   $ 23,820   $ (110 ) $ (19,270 ) $ 86,716  
           
Revenue   255,342     159,375     418     -     415,135  
ADJUSTED EBITDA MARGIN   32.2 %   14.9 %   -26.4 % NA   20.9 %
           
           
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 expense   40,736     17,331     1,590     5,048     64,705  
Amortization of intangibles from acquisitions   1,384     -     -     -     1,384  
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 %

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

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

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Source: ATN International, Inc.