UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
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| Item 2.02 | Results of Operations and Financial Condition. |
On April 26, 2023, ATN International, Inc. (the “Company”) issued a press release announcing financial results for the three months ended March 31, 2023. A copy of the press release is furnished herewith as Exhibit 99.1.
Exhibit 99.1 is furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| 99.1 | Press Release of the Company, dated April 26, 2023 |
| 104 | Cover Page Data File (formatted as inline XBRL document) |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ATN INTERNATIONAL, INC. | ||
| By: | /s/ Justin D. Benincasa | |
| Justin D. Benincasa | ||
| Chief Financial Officer | ||
| Dated April 26, 2023 | ||
3
Exhibit 99.1
ATN Reports First-Quarter 2023 Results; Reiterates Outlook
“First-to-Fiber” and “Glass and SteelTM” Strategies Drive Growth
| · | Revenue grew 8% to $185.8 million | |
| · | Increased total high-speed subscribers reached by 18% | |
| · | Expanded broadband homes passed by high-speed digital solutions by 56% | |
| · | Capital expenditures were $50.6 million (net of $2.1 million of reimbursables) |
Adjusted EBITDA Improvements Follow Subscriber and Revenue Growth
| · | Net loss increased to $(5.9) million, or $(0.44) per share; operating income increased to $0.6 million | |
| · | Adjusted EBITDA1 increased 6% to $44.8 million |
Reiterates 2023 Outlook3
| · | Adjusted EBITDA expected to be in the range of $183.0 to $193.0 million | |
| · | Capital Expenditures expected to be in the range of $160.0 to $170.0 million |
Earnings Conference Call
| · | Thursday, April 27, 2023, at 10:00 a.m. ET; web participant link: https://edge.media-server.com/mmc/p/xxataq2m |
Beverly, MA (April 26, 2023) – ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported financial results for the quarter ended March 31, 2023.
1 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.
2 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.
3 For the Company’s three-year outlook for Adjusted EBITDA, Net Debt and Net Debt Ratio, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA and Net Debt.
1
COMPANY CONFIDENTIAL
Remarks by Michael Prior, ATN CEO
“The first quarter of 2023 marks the start of the second year of our three-year investment plan. We are already seeing the benefits of our expanded network and its associated customer additions. Broadband homes passed by high-speed solutions increased by 56% versus last year, primarily due to fiber-based network expansions in Guyana and Alaska. ATN’s first quarter revenue reached the highest level in more than a decade. As we continue to add subscribers to the network, we expect to strengthen and expand our core base of highly durable revenue and cash flow.
“We showed consistency of execution in the first quarter and were again rewarded with solid subscriber growth, high levels of customer retention and progress on our key operational and financial metrics. We expect our customer base, revenue, and Adjusted EBITDA growth trends to continue throughout 2023 and continue to track to our three-year plan.”
First Quarter 2023 Financial Results
Consolidated revenues were $185.8 million, up 8% versus $172.0 million in the year-ago quarter. This increase primarily reflects increased mobility and fixed revenues, including those from a recent acquisition, partially offset by lower legacy roaming and construction revenues.
Operating income increased to $0.6 million, from $0.1 million in the year-ago quarter. The year-over-year increase was primarily due to higher revenues, partially offset by an increase in depreciation expense from a recent acquisition and a restructuring charge associated with our legacy wholesale wireless business. Last year’s first quarter operating income included a loss on the disposition of assets.
Net loss attributable to ATN stockholders was $(5.9) million, or $(0.44) loss per share, and increased in comparison to the net loss of $(0.9) million, or $(0.13) loss per share, in the year-ago quarter due primarily to a $5.3 million increase in net interest expense compared with last year.
Adjusted EBITDA1 increased to $44.8 million, from $42.1 million in the year-ago quarter.
2
COMPANY CONFIDENTIAL
Segment Operating Results (in Thousands)
The Company recorded financial results in three categories: (i) International Telecom; (ii) US Telecom; and (iii) Corporate and Other.
| For Three Months Ended March 31, 2023 and 2022 | ||||||||||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
| International | International | US | US | Total | Total | |||||||||||||||||||||||||||
| Telecom | Telecom | Telecom | Telecom | All Other* | All Other* | ATN | ATN | |||||||||||||||||||||||||
| Total Revenue: | $ | 90,408 | $ | 86,787 | $ | 95,366 | $ | 85,232 | $ | - | $ | - | $ | 185,774 | $ | 172,019 | ||||||||||||||||
| Mobility | 26,107 | 23,586 | 1,159 | 1,830 | - | - | 27,266 | 25,416 | ||||||||||||||||||||||||
| Fixed | 58,891 | 58,347 | 58,902 | 46,113 | - | - | 117,793 | 104,460 | ||||||||||||||||||||||||
| Carrier Services | 3,690 | 3,402 | 32,084 | 32,989 | - | - | 35,774 | 36,391 | ||||||||||||||||||||||||
| Construction | - | - | 590 | 1,987 | - | - | 590 | 1,987 | ||||||||||||||||||||||||
| All other | 1,720 | 1,452 | 2,631 | 2,313 | - | - | 4,351 | 3,765 | ||||||||||||||||||||||||
| Operating Income (Loss) | $ | 13,825 | $ | 11,802 | $ | (4,342 | ) | $ | (4,635 | ) | $ | (8,847 | ) | $ | (7,059 | ) | $ | 636 | $ | 108 | ||||||||||||
| EBITDA2 | $ | 28,391 | $ | 26,117 | $ | 20,012 | $ | 16,647 | $ | (8,116 | ) | $ | (6,106 | ) | $ | 40,287 | $ | 36,658 | ||||||||||||||
| Adjusted EBITDA1 | $ | 28,458 | $ | 27,208 | $ | 22,809 | $ | 19,668 | $ | (6,469 | ) | $ | (4,784 | ) | $ | 44,798 | $ | 42,092 | ||||||||||||||
| Capital Expenditures** | $ | 21,463 | $ | 15,170 | $ | 29,135 | $ | 18,847 | $ | - | $ | 203 | $ | 50,598 | $ | 34,220 | ||||||||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments.
**Excludes government capital programs amounts disbursed and amounts received.
ATN’s Strategic Plan and Key Performance Indicators
Investments to drive long-term growth and durable cash flow – To address the growing need for more bandwidth and reliable connectivity across all markets and geographies in which we operate, the Company continues to deploy capital in fiber and fiber-fed high-speed data solutions to increase the Company’s fiber footprint and grow broadband subscribers.
3
COMPANY CONFIDENTIAL
Operating Metrics
| Operating Metrics | ||||||||||||||||||||||||
| 2023 | 2022 | 2022 | 2022 | 2022 | Q1 2023 | |||||||||||||||||||
| Q1 | Q4 | Q3 | Q2 | Q1 | vs. Q1 2022 | |||||||||||||||||||
| Broadband Homes Passed | 736,300 | 728,900 | 613,600 | 614,200 | 610,100 | 21 | % | |||||||||||||||||
| Broadband Homes Passed by HSD* | 301,600 | 275,100 | 219,300 | 199,800 | 193,300 | 56 | % | |||||||||||||||||
| Broadband Customers | 216,900 | 210,300 | 205,200 | 204,500 | 204,000 | 6 | % | |||||||||||||||||
| HSD* Broadband Customers | 119,800 | 113,000 | 110,700 | 105,600 | 101,800 | 18 | % | |||||||||||||||||
| Fiber Route Miles | 11,099 | 10,545 | 9,756 | 9,399 | 9,127 | 22 | % | |||||||||||||||||
| International Mobile Subscribers | ||||||||||||||||||||||||
| Pre-Paid | 328,300 | 322,000 | 301,800 | 297,000 | 291,900 | 12 | % | |||||||||||||||||
| Post-Paid | 57,100 | 55,700 | 54,200 | 51,900 | 50,200 | 14 | % | |||||||||||||||||
| Total | 385,400 | 377,700 | 356,000 | 348,900 | 342,100 | 13 | % | |||||||||||||||||
| Blended Churn | 2.81 | % | 2.25 | % | 3.02 | % | 2.80 | % | 2.86 | % | ||||||||||||||
*HSD is defined as download speeds greater than 100 Mbps and HSD subscribers connected to our high-speed networks regardless of the speed of plan selected.
Note: Data presented may differ from prior periods to reflect more accurate data and/or changes in calculation methodology and process.
Balance Sheet and Cash Flow Highlights
Total cash, cash equivalents and restricted cash as of March 31, 2023, was $61.0 million and total debt was $464.7 million, versus $76.8 million of cash, cash equivalents and restricted cash and $352.2 million of total debt at the end of the year-ago quarter.
Net cash provided by operating activities was $16.0 million at quarter-end, compared with net cash provided by operating activities of $11.4 million in the year-ago quarter.
Capital Expenditures were $50.6 million net of $2.1 million of reimbursable capital expenditures for the first quarter of 2023, versus $34.2 million a year ago.
Quarterly Dividends and Stock Repurchases
Quarterly dividends ATN paid a quarterly dividend of $0.21 per share on April 7, 2023, on all common shares outstanding to stockholders of record as of March 31, 2023.
Stock repurchases of the Company’s common stock totaled $1.4 million in the first quarter of 2023.
4
COMPANY CONFIDENTIAL
Guidance and Outlook
The Company is continuing investments in its “Glass and Steel™” and “First-to-Fiber” market strategies. At the start of 2022, the Company set business targets to be achieved exiting 2024 following a three-year period of above-normal network investments. In 2023, the Company believes it remains well-positioned to achieve the growth rate targets, capital expenditure levels projected, and projected leverage ratios.
Reiterates outlook for full year 2023 ending December 31, 2023:
| Adjusted EBITDA1 | $183 million to $193 million | Full year 2023 |
| Capital Expenditure | $160 million to $170 million | Full year 2023 |
Reiterates outlook for the three-year period ending December 31, 2024:
| Revenue CAGR | 4-6% | 2021-2024 |
| Adjusted EBITDA1 CAGR | 8-10% | 2021-2024 |
| Capital Expenditure | Return to 10-15% of Revenue | After 2024 |
| Net Debt Ratio | Approx. 2.0x | Exiting 2024 |
Note: Revenue and Adjusted EBITDA CAGRS assume full year 2021 Alaska results and exclude construction revenue.
For the Company’s three-year outlook for Adjusted EBITDA, Net Debt and Net Debt Ratio, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA and Net Debt.
Conference Call Information
Call Date: Thursday, April 27, 2023
Call Time: 10:00 a.m. ET
Webcast Link: https://edge.media-server.com/mmc/p/xxataq2m
Live Call Participant Link: https://register.vevent.com/register/BI0423a82305c04203a8dc0b9313c6d153
Webcast Link Instructions – A live audio webcast of the conference call is available by visiting the “Webcast Link” above or the “Events & Presentations” section of the Company’s Investor Relations website at https://ir.atni.com/events-and-presentations. A replay of the conference call will be available at the same location approximately one hour after the live call concludes. The Company also will provide an investor presentation as a supplement to the call on the “Events & Presentations” section of its Investor Relations website.
5
COMPANY CONFIDENTIAL
About ATN
ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a leading provider of digital infrastructure and communications services for all. The Company operates in the United States and internationally, including the Caribbean region, with a focus on rural and remote markets with a growing demand for infrastructure investments. The Company’s operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential, business, and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and (ii) carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities. For more information, please visit www.atni.com.
Use of Non-GAAP Financial Measures and Definition of Terms
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, Adjusted EBITDA, Net Debt, and Net Debt Ratio in this release and the tables included herein.
EBITDA is defined as Operating income (loss) before depreciation and amortization expense.
Adjusted EBITDA is defined as Operating income (loss) before depreciation and amortization expense, transaction-related charges, one-time impairment or special charges, and the gain (loss) on disposition of assets. To more closely align with similar calculations presented by companies in its industry, beginning in this first quarter of 2023, the Company excludes non-cash stock-based compensation in its adjustment to derive Adjusted EBITDA. Prior periods have been restated to conform to this definition change.
Net Debt is defined as total debt less cash and cash equivalents and restricted cash.
Net Debt Ratio is defined as Net Debt divided by the trailing four quarters’ ended total Adjusted EBITDA at the measurement date.
6
COMPANY CONFIDENTIAL
The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. 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.
Cautionary Language Concerning Forward-Looking Statements
This press release contains forward-looking statements relating to, among other matters, the Company’s future financial performance, business goals and objectives, and results of operations, expectations regarding the transition of its US Telecom business, its future revenues, operating income, cash flows, EBITDA, Adjusted EBITDA, Net Debt, Net Debt Ratio, and capital investments; demand for the Company’s services and industry trends; the Company’s liquidity; the organization of the Company’s business; our expansion into growing markets; the expansion of the Company’s customer base; 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 the Company’s operations, including operating margins, revenues, capital expenditures, and the retention of and future growth of the Company’s subscriber base and ARPU; (2) the Company’s reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to the Company’s network infrastructure; (3) the Company’s ability to satisfy the needs and demands of the Company’s major carrier customers; (4) the Company’s ability to realize cost synergies for its newly acquired businesses and expansion plans for its fiber markets; (5) the adequacy and expansion capabilities of the Company’s network capacity and customer service system to support the Company’s customer growth; (6) the Company’s ability to efficiently and cost-effectively upgrade the Company’s networks and information technology platforms to address rapid and significant technological changes in the telecommunications industry; (7) the Company’s continued access to capital and credit markets on terms it deems favorable; (8) government subsidy program availability and regulation of the Company’s businesses, which may impact the Company’s telecommunications licenses, the Company’s revenue and the Company’s operating costs; (9) the Company’s ability to successfully transition its US Telecom business away from wholesale wireless to other carrier and consumer-based services; (10) increased risk of an economic downturn, political, geopolitical and other risks and opportunities facing the Company’s operations, including those resulting from the persistence of high inflation and other macroeconomic headwinds including increased costs and supply chain disruptions; (11) the loss of, or an inability to recruit skilled personnel in the Company’s various jurisdictions, including key members of management; (12) the Company’s ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (13) the occurrence of weather events and natural catastrophes and the Company’s ability to secure the appropriate level of insurance coverage for these assets; and (14) increased competition. 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, 2022, filed with the SEC on March 15, 2023, and the other reports the Company files 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.
Contact
| Justin D. Benincasa | Ian Rhoades |
| Chief Financial Officer | Investor Relations |
| ATN International, Inc. | Sharon Merrill Advisors, Inc. |
| 978-619-1300 | ATNI@investorrelations.com |
7
COMPANY CONFIDENTIAL
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 56,016 | $ | 54,660 | ||||
| Restricted cash | 4,961 | 5,068 | ||||||
| Customer receivable | 6,083 | 5,803 | ||||||
| Other current assets | 164,492 | 164,157 | ||||||
| Total current assets | 231,552 | 229,688 | ||||||
| Property, plant and equipment, net | 1,056,363 | 1,055,954 | ||||||
| Operating lease right-of-use assets | 101,953 | 108,702 | ||||||
| Customer receivable - long term | 45,681 | 46,706 | ||||||
| Goodwill and other intangible assets, net | 182,626 | 185,794 | ||||||
| Other assets | 81,840 | 81,025 | ||||||
| Total assets | $ | 1,700,015 | $ | 1,707,869 | ||||
| Liabilities, redeemable non-controlling interests and stockholders’ equity: | ||||||||
| Current portion of long-term debt | $ | 11,537 | $ | 6,172 | ||||
| Current portion of customer receivable credit facility | 6,574 | 6,073 | ||||||
| Taxes payable | 13,611 | 7,335 | ||||||
| Current portion of lease liabilities | 13,785 | 15,457 | ||||||
| Other current liabilities | 159,877 | 198,143 | ||||||
| Total current liabilities | 205,384 | 233,180 | ||||||
| Long-term debt, net of current portion | $ | 453,144 | $ | 415,727 | ||||
| Customer receivable credit facility, net of current portion | 41,533 | 39,275 | ||||||
| Deferred income taxes | 26,697 | 28,650 | ||||||
| Lease liabilities | 78,360 | 83,319 | ||||||
| Other long-term liabilities | 137,148 | 138,420 | ||||||
| Total liabilities | 942,266 | 938,571 | ||||||
| Redeemable non-controlling interests | 93,223 | 92,468 | ||||||
| Stockholders' equity | ||||||||
| Total ATN International, Inc.’s stockholders’ equity | 567,243 | 580,814 | ||||||
| Non-controlling interests | 97,283 | 96,016 | ||||||
| Total stockholders' equity | 664,526 | 676,830 | ||||||
| Total liabilities, redeemable non-controlling interests and stockholders’ equity | $ | 1,700,015 | $ | 1,707,869 | ||||
8
COMPANY CONFIDENTIAL
Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
| Three Months Ended, | ||||||||
| March 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenues: | ||||||||
| Communications services | $ | 181,308 | $ | 166,543 | ||||
| Construction | 590 | 1,987 | ||||||
| Other | 3,876 | 3,489 | ||||||
| Total revenue | 185,774 | 172,019 | ||||||
| Operating expenses (excluding depreciation and amortization unless otherwise indicated): | ||||||||
| Cost of services and other | 79,040 | 73,011 | ||||||
| Cost of construction revenue | 588 | 2,033 | ||||||
| Selling, general and administrative | 61,348 | 54,882 | ||||||
| Stock-based compensation | 1,778 | 1,461 | ||||||
| Transaction-related charges | 13 | 554 | ||||||
| Restructuring expenses | 2,887 | - | ||||||
| Depreciation | 36,404 | 33,292 | ||||||
| Amortization of intangibles from acquisitions | 3,247 | 3,258 | ||||||
| (Gain) Loss on disposition of assets | (167 | ) | 3,420 | |||||
| Total operating expenses | 185,138 | 171,911 | ||||||
| Operating income | 636 | 108 | ||||||
| Other income (expense): | ||||||||
| Interest expense, net | (8,625 | ) | (3,312 | ) | ||||
| Other income (expense) | 194 | 4,199 | ||||||
| Other income (expenses), net | (8,431 | ) | 887 | |||||
| Income (loss) before income taxes | (7,795 | ) | 995 | |||||
| Income tax expense (benefit) | (740 | ) | 2,952 | |||||
| Net loss | (7,055 | ) | (1,957 | ) | ||||
| Net loss attributable to non-controlling interests, net | 1,170 | 1,009 | ||||||
| Net loss attributable to ATN International, Inc. stockholders | $ | (5,885 | ) | $ | (948 | ) | ||
| Net loss per weighted average share attributable to ATN International, Inc. stockholders: | ||||||||
| Basic Net Loss | $ | (0.44 | ) | $ | (0.13 | ) | ||
| Diluted Net Loss | $ | (0.44 | ) | $ | (0.13 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic | 15,768 | 15,708 | ||||||
| Diluted | 15,768 | 15,708 | ||||||
9
COMPANY CONFIDENTIAL
Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statements
(in Thousands)
| Three Months Ended March 31, | ||||||||
| 2023 | 2022 | |||||||
| Net Loss | $ | (7,055 | ) | $ | (1,957 | ) | ||
| Depreciation | 36,404 | 33,292 | ||||||
| Amortization of intangibles from acquisitions | 3,247 | 3,258 | ||||||
| Provision for doubtful accounts | 1,378 | 1,913 | ||||||
| Amortization of debt discount and debt issuance costs | 569 | 501 | ||||||
| (Gain) loss on disposition of long-lived assets | (167 | ) | 3,420 | |||||
| Stock-based compensation | 1,778 | 1,461 | ||||||
| Deferred income taxes | (1,953 | ) | 191 | |||||
| Loss on pension settlement | 369 | - | ||||||
| (Gain) loss on equity investments | (315 | ) | (4,222 | ) | ||||
| Increase in customer receivable | 745 | (746 | ) | |||||
| Change in prepaid and accrued income taxes | 7,632 | 8,969 | ||||||
| Change in other operating assets and liabilities | (26,620 | ) | (34,692 | ) | ||||
| Net cash provided by operating activities | 16,012 | 11,388 | ||||||
| Capital expenditures | (50,598 | ) | (34,220 | ) | ||||
| Government capital programs: | ||||||||
| Amounts disbursed | (2,127 | ) | (248 | ) | ||||
| Amounts received | 593 | - | ||||||
| Net purchases of investments | (630 | ) | - | |||||
| Net cash used in investing activities | (52,762 | ) | (34,468 | ) | ||||
| Dividends paid on common stock | (3,310 | ) | (2,672 | ) | ||||
| Distributions to non-controlling interests | - | (263 | ) | |||||
| Finance lease repayments | (249 | ) | (338 | ) | ||||
| Term loan - repayments | (1,171 | ) | (938 | ) | ||||
| Payment of debt issuance costs | (119 | ) | - | |||||
| Revolving credit facilities – borrowings | 57,553 | 36,500 | ||||||
| Revolving credit facilities – repayments | (14,000 | ) | (15,500 | ) | ||||
| Proceeds from customer receivable credit facility | 4,300 | 8,000 | ||||||
| Repayment of customer receivable credit facility | (1,570 | ) | (1,003 | ) | ||||
| Purchases of common stock - stock-based compensation | (1,433 | ) | (1,136 | ) | ||||
| Purchases of common stock - share repurchase plan | (1,407 | ) | (941 | ) | ||||
| Repurchases of non-controlling interests, net | (595 | ) | (2,481 | ) | ||||
| Net cash provided by used in financing activities | 37,999 | 19,228 | ||||||
| Net change in total cash, cash equivalents and restricted cash | 1,249 | (3,852 | ) | |||||
| Total cash, cash equivalents and restricted cash, beginning of period | 59,728 | 80,697 | ||||||
| Total cash, cash equivalents and restricted cash, end of period | $ | 60,977 | $ | 76,845 | ||||
10
COMPANY CONFIDENTIAL
Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended March 31, 2023 is as follows:
| International Telecom | US Telecom | Corporate
and Other * | Total | |||||||||||||
| Statement of Operations Data: | ||||||||||||||||
| Revenue | ||||||||||||||||
| Mobility | ||||||||||||||||
| Business | $ | 3,575 | $ | 172 | $ | - | $ | 3,747 | ||||||||
| Consumer | 22,532 | 987 | - | 23,519 | ||||||||||||
| Total | $ | 26,107 | $ | 1,159 | $ | - | $ | 27,266 | ||||||||
| Fixed | ||||||||||||||||
| Business | $ | 17,113 | $ | 36,320 | $ | - | $ | 53,433 | ||||||||
| Consumer | 41,778 | 22,582 | - | 64,360 | ||||||||||||
| Total | $ | 58,891 | $ | 58,902 | $ | - | $ | 117,793 | ||||||||
| Carrier Services | $ | 3,690 | $ | 32,084 | $ | - | $ | 35,774 | ||||||||
| Other | 400 | 75 | - | 475 | ||||||||||||
| Total Communications Services | $ | 89,088 | $ | 92,220 | $ | - | $ | 181,308 | ||||||||
| Construction | $ | - | $ | 590 | $ | - | $ | 590 | ||||||||
| Managed services | $ | 1,320 | $ | 2,556 | $ | - | $ | 3,876 | ||||||||
| Total Other | $ | 1,320 | $ | 2,556 | $ | - | $ | 3,876 | ||||||||
| Total Revenue | $ | 90,408 | $ | 95,366 | $ | - | $ | 185,774 | ||||||||
| Depreciation | $ | 14,186 | $ | 21,487 | $ | 731 | $ | 36,404 | ||||||||
| Amortization of intangibles from acquisitions | $ | 380 | $ | 2,867 | $ | - | $ | 3,247 | ||||||||
| Total operating expenses | $ | 76,583 | $ | 99,708 | $ | 8,847 | $ | 185,138 | ||||||||
| Operating income (loss) | $ | 13,825 | $ | (4,342 | ) | $ | (8,847 | ) | $ | 636 | ||||||
| Stock-based compensation | $ | 67 | $ | 77 | $ | 1,634 | $ | 1,778 | ||||||||
| Non-controlling interest ( net income or (loss) ) | $ | (1,807 | ) | $ | 2,977 | $ | - | $ | 1,170 | |||||||
| Non GAAP measures: | ||||||||||||||||
| EBITDA (2) | $ | 28,391 | $ | 20,012 | $ | (8,116 | ) | $ | 40,287 | |||||||
| Adjusted EBITDA (1) | $ | 28,458 | $ | 22,809 | $ | (6,469 | ) | $ | 44,798 | |||||||
| Balance Sheet Data (at March 31, 2023): | ||||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 31,737 | $ | 23,021 | $ | 6,219 | $ | 60,977 | ||||||||
| Total current assets | 113,711 | 110,108 | 7,733 | 231,552 | ||||||||||||
| Fixed assets, net | 468,961 | 580,633 | 6,769 | 1,056,363 | ||||||||||||
| Total assets | 658,621 | 959,395 | 81,999 | 1,700,015 | ||||||||||||
| Total current liabilities | 88,967 | 96,844 | 19,573 | 205,384 | ||||||||||||
| Total debt, including current portion | 63,235 | 279,446 | 122,000 | 464,681 | ||||||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
11
COMPANY CONFIDENTIAL
Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended March 31, 2022 is as follows:
| International Telecom | US Telecom | Corporate
and Other * | Total | |||||||||||||
| Statement of Operations Data: | ||||||||||||||||
| Revenue | ||||||||||||||||
| Mobility | ||||||||||||||||
| Business | $ | 3,616 | $ | 374 | $ | - | $ | 3,990 | ||||||||
| Consumer | 19,970 | 1,456 | - | 21,426 | ||||||||||||
| Total | $ | 23,586 | $ | 1,830 | $ | - | $ | 25,416 | ||||||||
| Fixed | ||||||||||||||||
| Business | $ | 17,254 | $ | 27,145 | $ | - | $ | 44,399 | ||||||||
| Consumer | 41,093 | 18,968 | - | 60,061 | ||||||||||||
| Total | $ | 58,347 | $ | 46,113 | $ | - | $ | 104,460 | ||||||||
| Carrier Services | $ | 3,402 | $ | 32,989 | $ | - | $ | 36,391 | ||||||||
| Other | 276 | - | - | 276 | ||||||||||||
| Total Communications Services | $ | 85,611 | $ | 80,932 | $ | - | $ | 166,543 | ||||||||
| Construction | $ | - | $ | 1,987 | $ | - | $ | 1,987 | ||||||||
| Managed services | $ | 1,176 | $ | 2,313 | $ | - | $ | 3,489 | ||||||||
| Total Other | $ | 1,176 | $ | 2,313 | $ | - | $ | 3,489 | ||||||||
| Total Revenue | $ | 86,787 | $ | 85,232 | $ | - | $ | 172,019 | ||||||||
| Depreciation | $ | 13,897 | $ | 18,442 | $ | 953 | $ | 33,292 | ||||||||
| Amortization of intangibles from acquisitions | $ | 418 | $ | 2,840 | $ | - | $ | 3,258 | ||||||||
| Total operating expenses | $ | 74,985 | $ | 89,867 | $ | 7,059 | $ | 171,911 | ||||||||
| Operating income (loss) | $ | 11,802 | $ | (4,635 | ) | $ | (7,059 | ) | $ | 108 | ||||||
| Stock-based compensation | $ | 60 | $ | 90 | $ | 1,310 | $ | 1,460 | ||||||||
| Non-controlling interest ( net income or (loss) ) | $ | (1,519 | ) | $ | 2,528 | $ | - | $ | 1,009 | |||||||
| Non GAAP measures: | ||||||||||||||||
| EBITDA (2) | $ | 26,117 | $ | 16,647 | $ | (6,106 | ) | $ | 36,658 | |||||||
| Adjusted EBITDA (1) | $ | 27,208 | $ | 19,668 | $ | (4,784 | ) | $ | 42,092 | |||||||
| Balance Sheet Data (at December 31, 2022): | ||||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 26,418 | $ | 26,375 | $ | 6,935 | $ | 59,728 | ||||||||
| Total current assets | 105,324 | 116,038 | 8,326 | 229,688 | ||||||||||||
| Fixed assets, net | 462,447 | 585,969 | 7,538 | 1,055,954 | ||||||||||||
| Total assets | 643,664 | 980,543 | 83,662 | 1,707,869 | ||||||||||||
| Total current liabilities | 86,738 | 119,756 | 26,686 | 233,180 | ||||||||||||
| Total debt, including current portion | 59,659 | 263,240 | 99,000 | 421,899 | ||||||||||||
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
12
COMPANY CONFIDENTIAL
Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the three months ended March 31, 2023 is as follows:
| International Telecom | US Telecom | Corporate
and Other * | Total | |||||||||||||
| Operating income (loss) | $ | 13,825 | $ | (4,342 | ) | $ | (8,847 | ) | $ | 636 | ||||||
| Depreciation expense | 14,186 | 21,487 | 731 | 36,404 | ||||||||||||
| Amortization of intangibles from acquisitions | 380 | 2,867 | - | 3,247 | ||||||||||||
| EBITDA | $ | 28,391 | $ | 20,012 | $ | (8,116 | ) | $ | 40,287 | |||||||
| Stock-based compensation | 67 | 77 | 1,634 | 1,778 | ||||||||||||
| Restructuring expenses | - | 2,887 | - | 2,887 | ||||||||||||
| Transaction-related charges | - | - | 13 | 13 | ||||||||||||
| (Gain) Loss on disposition of assets | - | (167 | ) | - | (167 | ) | ||||||||||
| ADJUSTED EBITDA | $ | 28,458 | $ | 22,809 | $ | (6,469 | ) | $ | 44,798 | |||||||
For the three months ended March 31, 2022 is as follows:
| International Telecom | US Telecom | Corporate
and Other * | Total | |||||||||||||
| Operating income (loss) | $ | 11,802 | $ | (4,635 | ) | $ | (7,059 | ) | $ | 108 | ||||||
| Depreciation expense | 13,897 | 18,442 | 953 | 33,292 | ||||||||||||
| Amortization of intangibles from acquisitions | 418 | 2,840 | - | 3,258 | ||||||||||||
| EBITDA | $ | 26,117 | $ | 16,647 | $ | (6,106 | ) | $ | 36,658 | |||||||
| Stock-based compensation | 60 | 90 | 1,310 | 1,460 | ||||||||||||
| Transaction-related charges | - | 542 | 12 | 554 | ||||||||||||
| (Gain) Loss on disposition of assets | 1,031 | 2,389 | - | 3,420 | ||||||||||||
| ADJUSTED EBITDA | $ | 27,208 | $ | 19,668 | $ | (4,784 | ) | $ | 42,092 | |||||||
13
COMPANY CONFIDENTIAL
Table 6
ATN International, Inc.
Non GAAP Measure - Net Debt Ratio
(in Thousands)
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Current portion of long-term debt * | $ | 11,537 | $ | 6,172 | ||||
| Long-term debt, net of current portion * | 453,144 | 415,727 | ||||||
| Total debt | $ | 464,681 | $ | 421,899 | ||||
| Less: Cash, cash equivalents and restricted cash | 60,977 | 59,728 | ||||||
| Net Debt | $ | 403,704 | $ | 362,171 | ||||
| Adjusted EBITDA - for the four quarters ended | $ | 175,393 | $ | 172,688 | ||||
| Net Debt Ratio | 2.30 | 2.10 | ||||||
* Excludes Customer receivable credit facility
14