ATN Reports Third Quarter and Nine Month 2015 Results
Third Quarter 2015 Highlights:
- Revenues of
$96.8 million - Adjusted EBITDA1 of
$39.7 million - Operating income of $22.5 million included
$2.5 million of transaction-related costs - Net income attributable to ATN's stockholders was
$6.6 million , or$0.41 per diluted share - Cash flow from operating activities for the first nine months of 2015 was
$113.1 million
Third Quarter 2015 Results
"Third quarter results were in line with our overall expectations, reflecting a mix of factors affecting revenues and operating profitability that are consistent with the execution of our strategy," said
Third quarter 2015 revenues were
Adjusted EBITDA1 for the third quarter was
Operating income was
Nine Month 2015 Financial Results
Nine month revenues were
Acquisition Updates
"In October, we announced two strategically important transactions that are aligned with our approach of building out our service offerings in geographies where we see the potential to create long term value." said
"Once completed, we expect these acquisitions to add approximately
"In both cases, we are investing in markets and geographies we know well, and where we will have the ability to provide customers with a single connectivity solution for mobile and fixed telecom and media services. After accounting for the cash outlays associated with these agreements, ATN still will have significant cash resources and debt capacity to invest in organic growth projects and to deploy in additional acquisitions, and we are actively reviewing opportunities in both categories,"
1 See Table 4 for reconciliation of Net Income to Adjusted EBITDA.
2 See Table 5 for reconciliation of Net Income Attributable to ATN Stockholders to Net Income Attributable to ATN Stockholders Excluding Loss on Deconsolidation.
Third Quarter 2015 Operating Highlights
U.S. wireless revenues primarily consist of voice and data revenues from the Company's wholesale roaming operations and the Company's smaller retail operations. Total revenues from the U.S. wireless business were
International wireless revenues include retail and wholesale voice and data wireless revenues from operations in
Wireline
Wireline revenues are generated by the Company's wireline operations in
Renewable Energy
Renewable energy revenues are generated principally by the sale of energy and solar renewable energy credits from our 28 commercial solar projects. For the third quarter of 2015, revenues from our renewable energy business were
Reportable Operating Segments
The Company has five reportable segments: (i)
For the three months ended
International Integrated Telephony | U.S. Wireline | Renewable Energy | Reconciling Items 3 | Total | |||||||||||||||||
Total Revenue | $ | 47,679 | $ | 22,537 | $ | 15,368 | $ | 6,146 | $ | 5,052 | $ | - | $ | 96,782 | |||||||
Adjusted EBITDA | 29,730 | 5,783 | 5,545 | 203 | 3,934 | (5,545 | ) | 39,650 | |||||||||||||
Operating Income (Loss) | 25,208 | 1,313 | 3,615 | (990 | ) | 2,694 | (9,316 | ) | 22,524 |
For the three months ended
International Integrated Telephony | U.S. Wireline | Renewable Energy | Reconciling Items 3 | Total | |||||||||||||||
Total Revenue | $ | 44,736 | $ | 21,831 | $ | 16,627 | $ | 6,199 | n/a | $ | - | $ | 89,393 | ||||||
Adjusted EBITDA | 31,242 | 9,462 | 4,827 | 722 | n/a | (5,280 | ) | 40,973 | |||||||||||
Operating Income (Loss) | 27,585 | 5,065 | 2,231 | (471 | ) | n/a | (6,252 | ) | 28,158 |
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents at
Conference Call Information
ATN will host a conference call on
About ATN
ATN (Nasdaq:ATNI), headquartered in Beverly,
Cautionary Language Concerning Forward Looking Statements
This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations; the competitive
environment in our key markets, demand for our services and industry trends; the outcome of regulatory matters; the pace of our network expansion and improvement, including our level of estimated future capital expenditures and our realization of the benefits of these investments; 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, and the future growth and retention of our subscriber base and consumer demand for solar power; (2) government regulation of our businesses, which may impact our
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release also contains non-GAAP financial measures. Specifically, ATN has presented an Adjusted EBITDA measure and a net income measure exclusive of the results of loss on the deconsolidation of subsidiaries. Adjusted EBITDA is defined as net income attributable to ATN stockholders before income from discontinued operations, gain on disposal of discontinued operations, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, and net income attributable to non-controlling interests. Net income attributable to ATN stockholders excluding loss on deconsolidation of subsidiary and the related earnings per diluted share is defined as net income attributable to ATN stockholders less the loss and tax impact of the deconsolidation of the subsidiary. 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 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 news 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 news release to the most directly comparable GAAP financial measure is set forth in the text of, and the accompanying tables to, this press release.
Table 1 | |||||||||
Unaudited Condensed Consolidated Balance Sheets | |||||||||
(in Thousands) | |||||||||
2015 | 2014 | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 397,797 | $ | 326,216 | |||||
Restricted cash | 797 | 39,703 | |||||||
Assets of discontinued operations | 44 | 175 | |||||||
Other current assets | 79,958 | 85,280 | |||||||
Total current assets | 478,596 | 451,374 | |||||||
Long-term restricted cash | 5,013 | 5,475 | |||||||
Property, plant and equipment, net | 366,015 | 369,582 | |||||||
90,277 | 91,080 | ||||||||
Other assets | 6,557 | 7,519 | |||||||
Total assets | $ | 946,458 | $ | 925,030 | |||||
Liabilities and Stockholders' Equity: | |||||||||
Current portion of long-term debt | $ | 6,254 | $ | 6,083 | |||||
Liabilities of discontinued operations | 1,293 | 1,247 | |||||||
Other current liabilities | 81,040 | 96,739 | |||||||
Total current liabilities | 88,587 | 104,069 | |||||||
Long-term debt, net of current portion | $ | 28,141 | $ | 32,794 | |||||
Deferred income taxes | 37,694 | 30,366 | |||||||
Other long-term liabilities | 28,738 | 19,619 | |||||||
Total long-term liabilities | 94,573 | 82,779 | |||||||
Total liabilities | 183,160 | 186,848 | |||||||
Total | 679,516 | 677,222 | |||||||
Non-controlling interests | 83,782 | 60,960 | |||||||
Total equity | 763,298 | 738,182 | |||||||
Total liabilities and stockholders' equity | $ | 946,458 | $ | 925,030 |
Table 2 | ||||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||||
(in Thousands, Except per Share Data) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Revenues: | ||||||||||||||||||
U.S. wireless | $ | 47,047 | $ | 44,306 | $ | 122,993 | $ | 110,153 | ||||||||||
International wireless | 20,392 | 21,557 | 61,787 | 67,127 | ||||||||||||||
Wireline | 21,815 | 21,531 | 64,497 | 64,344 | ||||||||||||||
Renewable energy | 5,052 | - | 15,631 | - | ||||||||||||||
Equipment and other | 2,476 | 1,999 | 7,545 | 6,212 | ||||||||||||||
Total revenue | 96,782 | 89,393 | 272,453 | 247,836 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Termination and access fees | 21,343 | 19,321 | 60,827 | 58,188 | ||||||||||||||
Engineering and operations | 10,631 | 7,525 | 26,218 | 21,508 | ||||||||||||||
Sales, marketing and customer service | 5,797 | 5,827 | 16,315 | 16,499 | ||||||||||||||
Equipment expense | 3,431 | 2,924 | 10,093 | 8,938 | ||||||||||||||
General and administrative | 15,930 | 12,823 | 44,743 | 38,596 | ||||||||||||||
Transaction-related charges | 2,536 | (27 | ) | 2,852 | 341 | |||||||||||||
Depreciation and amortization | 14,590 | 12,842 | 43,813 | 37,752 | ||||||||||||||
Gain on disposition of long-lived assets | - | - | (2,823 | ) | - | |||||||||||||
Total operating expenses | 74,258 | 61,235 | 202,038 | 181,822 | ||||||||||||||
Operating income | 22,524 | 28,158 | 70,415 | 66,014 | ||||||||||||||
Other income (expense): | ||||||||||||||||||
Interest expense, net | (795 | ) | (13 | ) | (2,153 | ) | (220 | ) | ||||||||||
Loss on deconsolidation of subsidiary | - | - | (19,937 | ) | - | |||||||||||||
Other income (expense) | 53 | 338 | 114 | 302 | ||||||||||||||
Other income (expense), net | (742 | ) | 325 | (21,976 | ) | 82 | ||||||||||||
Income from continuing operations before income taxes | 21,782 | 28,483 | 48,439 | 66,096 | ||||||||||||||
Income tax expense | 10,134 | 9,569 | 22,655 | 22,460 | ||||||||||||||
Income from continuing operations | 11,648 | 18,914 | 25,784 | 43,636 | ||||||||||||||
Income from discontinued operations, net of tax | - | - | 390 | - | ||||||||||||||
Net income | 11,648 | 18,914 | 26,174 | 43,636 | ||||||||||||||
Net income attributable to non-controlling interests, net of tax: | ||||||||||||||||||
Continuing operations | (5,072 | ) | (2,747 | ) | (13,417 | ) | (8,116 | ) | ||||||||||
Discontinued operations | - | - | - | - | ||||||||||||||
Net income attributable to non-controlling interests, net | (5,072 | ) | (2,747 | ) | (13,417 | ) | (8,116 | ) | ||||||||||
Net income attributable to | $ | 6,576 | $ | 16,167 | $ | 12,757 | $ | 35,520 | ||||||||||
Basic net income per weighted average share attributable to | ||||||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 1.02 | $ | 0.77 | $ | 2.24 | ||||||||||
Income from discontinued operations | - | - | 0.02 | - | ||||||||||||||
Net income | $ | 0.41 | $ | 1.02 | $ | 0.79 | $ | 2.24 | ||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 1.01 | $ | 0.77 | $ | 2.22 | ||||||||||
Income from discontinued operations | - | - | 0.02 | - | ||||||||||||||
Net income | $ | 0.41 | $ | 1.01 | $ | 0.79 | $ | 2.22 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||
Basic | 16,049 | 15,923 | 16,009 | 15,890 | ||||||||||||||
Diluted | 16,165 | 16,030 | 16,128 | 16,001 |
Table 3 | ||||||||
| ||||||||
Unaudited Condensed Consolidated Cash Flow Statement | ||||||||
(in Thousands) | ||||||||
Nine Months Ended | ||||||||
2015 | 2014 | |||||||
Net income | $ | 26,174 | $ | 43,636 | ||||
Income from discontinued operations | (390 | ) | - | |||||
Depreciation and amortization | 43,813 | 37,752 | ||||||
Loss on deconsolidation of subsidiary | 19,937 | - | ||||||
Gain on disposition of long-lived assets | (2,823 | ) | - | |||||
Change in prepaid and accrued taxes | 27,684 | (18,401 | ) | |||||
Change in other operating assets and liabilities | (6,817 | ) | (12,092 | ) | ||||
Other non-cash activity | 4,967 | 4,766 | ||||||
Net cash provided by operating activities of continuing operations | 112,545 | 55,661 | ||||||
Net cash provided by (used in) operating activities of discontinued operations | 566 | (4,612 | ) | |||||
Net cash provided by operating activities | 113,111 | 51,049 | ||||||
Capital expenditures, net | (46,031 | ) | (41,699 | ) | ||||
Acquisition of business | (11,968 | ) | - | |||||
Net proceeds from sale of assets | 5,873 | 1,371 | ||||||
Change in restricted cash | 39,368 | 38,707 | ||||||
Net cash used in investing activities | (12,758 | ) | (1,621 | ) | ||||
Dividends paid on common stock | (13,920 | ) | (12,873 | ) | ||||
Distributions to non-controlling interests | (11,363 | ) | (7,931 | ) | ||||
Other | (3,489 | ) | (805 | ) | ||||
Net cash used in financing activities | (28,772 | ) | (21,609 | ) | ||||
Net change in cash and cash equivalents | 71,581 | 27,819 | ||||||
Cash and cash equivalents, beginning of period | 326,216 | 356,607 | ||||||
Cash and cash equivalents, end of period | $ | 397,797 | $ | 384,426 | ||||
Table 4 | |||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
U. | U.S. Wireline | Reconciling Items | Total | ||||||||||||||||||||
International Integrated Telephony | Island Wireless | Renewable Energy | |||||||||||||||||||||
Net income attributable to | $ | 16,167 | |||||||||||||||||||||
Net income attributable to non-controlling interests, net of tax | 2,747 | ||||||||||||||||||||||
Income tax expense | 9,569 | ||||||||||||||||||||||
Other income | (338 | ) | |||||||||||||||||||||
Interest expense, net | 13 | ||||||||||||||||||||||
Operating income (loss) | $ | 27,585 | $ | 5,065 | $ | 2,231 | $ | (471 | ) | $ | - | $ | (6,252 | ) | $ | 28,158 | |||||||
Depreciation and amortization | 3,657 | 4,397 | 2,596 | 1,193 | - | 999 | 12,842 | ||||||||||||||||
Transaction-related charges | - | - | - | - | - | (27 | ) | (27 | ) | ||||||||||||||
Adjusted EBITDA | $ | 31,242 | $ | 9,462 | $ | 4,827 | $ | 722 | $ | - | $ | (5,280 | ) | $ | 40,973 | ||||||||
Three Months Ended | |||||||||||||||||||||||
U. | U.S. Wireline | Reconciling Items | Total | ||||||||||||||||||||
International Integrated Telephony | Island Wireless | Renewable Energy | |||||||||||||||||||||
Net income attributable to | $ | 6,576 | |||||||||||||||||||||
Net income attributable to non-controlling interests, net of tax | 5,072 | ||||||||||||||||||||||
Income tax expense | 10,134 | ||||||||||||||||||||||
Other income | (53 | ) | |||||||||||||||||||||
Interest expense, net | 795 | ||||||||||||||||||||||
Operating income (loss) | $ | 25,208 | $ | 1,313 | $ | 3,615 | $ | (990 | ) | $ | 2,694 | $ | (9,316 | ) | $ | 22,524 | |||||||
Depreciation and amortization | 4,522 | 4,470 | 1,930 | 1,193 | 1,205 | 1,270 | 14,590 | ||||||||||||||||
Transaction-related charges | - | - | - | - | 35 | 2,501 | 2,536 | ||||||||||||||||
Adjusted EBITDA | $ | 29,730 | $ | 5,783 | $ | 5,545 | $ | 203 | $ | 3,934 | $ | (5,545 | ) | $ | 39,650 | ||||||||
Reconciliation of Net Income to Adjusted EBITDA for the Nine Months Ended | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
U. | U.S. Wireline | Reconciling Items | Total | ||||||||||||||||||||
International Integrated Telephony | Island Wireless | Renewable Energy | |||||||||||||||||||||
Net income attributable to | $ | 35,520 | |||||||||||||||||||||
Net income attributable to non-controlling interests, net of tax | 8,116 | ||||||||||||||||||||||
Income tax expense | 22,460 | ||||||||||||||||||||||
Other expense | (302 | ) | |||||||||||||||||||||
Interest expense, net | 220 | ||||||||||||||||||||||
Operating income (loss) | $ | 63,826 | $ | 15,293 | $ | 8,210 | $ | (2,511 | ) | $ | - | $ | (18,804 | ) | $ | 66,014 | |||||||
Depreciation and amortization | 10,413 | 13,111 | 7,810 | 3,519 | - | 2,899 | 37,752 | ||||||||||||||||
Transaction-related charges | - | - | - | - | - | 341 | 341 | ||||||||||||||||
Adjusted EBITDA | $ | 74,239 | $ | 28,404 | $ | 16,020 | $ | 1,008 | $ | - | $ | (15,564 | ) | $ | 104,107 | ||||||||
Nine Months Ended | |||||||||||||||||||||||
U. | U.S. Wireline | Reconciling Items | Total | ||||||||||||||||||||
International Integrated Telephony | Island Wireless | Renewable Energy | |||||||||||||||||||||
Net income attributable to | $ | 12,757 | |||||||||||||||||||||
Net income attributable to non-controlling interests, net of tax | 13,417 | ||||||||||||||||||||||
Income tax expense | 22,655 | ||||||||||||||||||||||
Other income | (114 | ) | |||||||||||||||||||||
Income from discontinued operations net of tax | (390 | ) | |||||||||||||||||||||
Loss on deconsolidation of subsidiary | 19,937 | ||||||||||||||||||||||
Interest expense, net | 2,153 | ||||||||||||||||||||||
Operating income (loss) | $ | 67,160 | $ | 11,545 | $ | 9,902 | $ | (3,046 | ) | $ | 8,037 | $ | (23,183 | ) | $ | 70,415 | |||||||
Depreciation and amortization | 13,175 | 13,249 | 6,461 | 3,699 | 3,613 | 3,616 | 43,813 | ||||||||||||||||
Gain on disposition of long lived asset | (2,823 | ) | - | - | - | - | - | (2,823 | ) | ||||||||||||||
Transaction-related charges | - | - | - | - | 97 | 2,755 | 2,852 | ||||||||||||||||
Adjusted EBITDA | $ | 77,512 | $ | 24,794 | $ | 16,363 | $ | 653 | $ | 11,747 | $ | (16,812 | ) | $ | 114,257 | ||||||||
Table 5 | ||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||
(In Thousands) | ||||||||||||||
Reconciliation of Net Income Attributable to | ||||||||||||||
Income Attributable to | ||||||||||||||
Diluted Earnings Per Share for the Three Months Ended | ||||||||||||||
Three Months Ended | ||||||||||||||
Total | ||||||||||||||
Net income attributable to | $ | 16,167 | ||||||||||||
Adjustments: None | - | |||||||||||||
Net income attributable to | ||||||||||||||
on deconsolidation of subsidiary | $ | 16,167 | ||||||||||||
Diluted net income
per weighted average share attributable to | ||||||||||||||
stockholder | $ | 1.01 | ||||||||||||
Adjustments: None | - | |||||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||
stockholder excluding loss on deconsolidation of subsidiary | $ | 1.01 | ||||||||||||
Three Months Ended | ||||||||||||||
Total | ||||||||||||||
Net income attributable to | $ | 6,576 | ||||||||||||
Adjustments: None | - | |||||||||||||
Net income attributable to | ||||||||||||||
on deconsolidation of subsidiary, net of tax | $ | 6,576 | ||||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||
stockholder | $ | 0.41 | ||||||||||||
Adjustments: None | - | |||||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||
stockholder excluding loss on deconsolidation of subsidiary | $ | 0.41 | ||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||
(In Thousands) | ||||||||||||||
Reconciliation of Net Income Attributable to | ||||||||||||||
Income Attributable to | ||||||||||||||
Diluted Earnings Per Share for the Nine Months Ended | ||||||||||||||
Nine Months Ended | ||||||||||||||
Total | ||||||||||||||
Net income attributable to | $ | 35,520 | ||||||||||||
Adjustments: None | - | |||||||||||||
Net income attributable to | ||||||||||||||
on deconsolidation of subsidiary | $ | 35,520 | ||||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||
stockholder | $ | 2.22 | ||||||||||||
Adjustments: None | - | |||||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||
stockholder excluding loss on deconsolidation of subsidiary | $ | 2.22 | ||||||||||||
Nine Months Ended | ||||||||||||||
Total | ||||||||||||||
Net income
attributable to | $ | 12,757 | ||||||||||||
Loss on deconsolidation of subsidiary | 19,937 | |||||||||||||
Income tax expense adjustment | - | |||||||||||||
Net income attributable to | ||||||||||||||
on deconsolidation of subsidiary, net of tax | $ | 32,694 | ||||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||
stockholder | $ | 0.79 | ||||||||||||
Adjustment for loss on deconsolidation | 1.24 | |||||||||||||
Diluted net income per weighted average share attributable to | ||||||||||||||
stockholder excluding loss on deconsolidation of subsidiary | $ | 2.03 | ||||||||||||
CONTACT:Source:Michael T. Prior Chief Executive Officer 978-619-1300Justin D. Benincasa Chief Financial Officer 978-619-1300
News Provided by Acquire Media