ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a
leading provider of digital infrastructure and communications
services, today reported results for the three and nine months
ended September 30, 2022.
“We executed well on our strategic growth
priorities and achieved a solid financial performance in the third
quarter,” said Michael Prior, Chief Executive Officer of ATN.
“Consistent with our ‘First-to-Fiber’ and ‘Glass and Steel’
strategies, we remained focused on being first to build and own
modern, core digital infrastructure in the markets we serve. As a
result, we continued to make steady progress across our key
operational metrics, including the numbers of customers connected
to and premises passed by our high-speed networks, which were up
13% and 15%, respectively, since the beginning of the year.
Additionally, in the quarter we grew our international mobility
subscriber base and mobility revenues by 9% and 11%, respectively,
year over year. These efforts continue to demonstrate our
leadership across our operating areas and lay the foundation for
our ongoing expansion in growing markets.
“With steady demand for our enterprise and
wholesale solutions, Alaska Communications has continued to perform
well and add to our topline and adjusted EBITDA2 while furthering
our overall network expansion. In addition to the benefit of a full
current quarter of Alaska results, both revenue and Adjusted
EBITDA2 also demonstrated strong organic growth year over year. In
recent months, we collaborated with two native Alaskan corporations
to secure federal grants totaling approximately $103 million to
connect 25 communities in Alaska’s rural Yukon Delta region, one of
the most underserved regions in the U.S. We also received a series
of federal grants for roughly $41 million to bring fiber,
broadband, and fixed wireless services to communities in the rural
Southwest U.S., inclusive of the $10 million grant we highlighted
last quarter. These grants will enable us to expand the number of
homes, schools, health care facilities, and business premises
covered by our fiber networks.
“With more than 30 years of experience
specializing in bringing connectivity to rural, remote, and other
traditionally underserved market segments, we are well-positioned
to provide advanced data services to these communities for positive
socioeconomic benefits and lasting business success. Looking ahead,
while we recognize the current macroeconomic headwinds, we also
remain confident in the critical need for our essential
connectivity services, the durability of our operations, and the
flexibility of our financial strategy. We plan to continue
executing our growth strategies going forward while also managing
our investments and operations prudently to ensure long-term
success.”
Third Quarter 2022 Financial Results
Third quarter 2022 consolidated revenues were
$182.2 million, up 9% compared with $166.8 million in the same
period a year ago. The Company reported operating income of $1.4
million and Adjusted EBITDA2 of $41.9 million, improving from an
operating loss of $1.0 million and Adjusted EBITDA2 of $36.8
million in the same period a year ago. These increases were due to
the improved operating performance of Alaska Communications as well
as the inclusion of a full quarter, or thirteen weeks, of Alaska
Communications’ results versus the addition of ten weeks of Alaska
Communications results in the same period a year ago3. Net loss
attributable to ATN stockholders for the third quarter was $2.8
million, or $0.25 loss per share, compared with net loss
attributable to ATN stockholders of $2.6 million, or $0.22 loss per
share, in the same period a year ago.
Third Quarter 2022 Operating Segment
Results
The Company recorded financial results during
the third quarter of 2022 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 the Company’s Corporate and Other segment as
“All Other.”
Operating Results (in
Thousands)
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|
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For Three Months Ended September 30, 2022 and
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
2021 |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
2021 |
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|
|
International |
International |
US |
US |
|
|
Total |
Total |
|
|
|
Telecom |
Telecom |
Telecom |
Telecom |
All Other* |
All Other* |
ATN |
ATN |
|
|
Revenue |
$ |
90,007 |
$ |
85,306 |
$ |
92,206 |
|
$ |
81,454 |
|
$ |
- |
|
$ |
- |
|
$ |
182,213 |
$ |
166,760 |
|
|
|
Operating Income (Loss) |
$ |
13,360 |
$ |
13,213 |
$ |
716 |
|
$ |
(9,830 |
) |
$ |
(12,637 |
) |
$ |
(4,365 |
) |
$ |
1,439 |
$ |
(982 |
) |
|
|
EBITDA1 |
$ |
27,866 |
$ |
26,939 |
$ |
21,913 |
|
$ |
7,559 |
|
$ |
(11,791 |
) |
$ |
(3,125 |
) |
$ |
37,988 |
$ |
31,373 |
|
|
|
Adjusted EBITDA2 |
$ |
27,863 |
$ |
26,872 |
$ |
21,912 |
|
$ |
16,404 |
|
$ |
(7,888 |
) |
$ |
(6,463 |
) |
$ |
41,887 |
$ |
36,813 |
|
|
|
Capital Expenditures** |
$ |
19,400 |
$ |
10,642 |
$ |
19,252 |
|
$ |
17,364 |
|
$ |
209 |
|
$ |
983 |
|
$ |
38,861 |
$ |
28,989 |
|
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For Nine Months Ended September 30, 2022 and
2021 |
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|
|
|
|
|
|
2022 |
|
2021 |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
|
International |
International |
US |
US |
|
|
Total |
Total |
|
|
|
Telecom |
Telecom |
Telecom |
Telecom |
All Other* |
All Other* |
ATN |
ATN |
|
|
Revenue |
$ |
265,197 |
$ |
255,342 |
$ |
268,533 |
|
$ |
159,375 |
|
$ |
- |
|
$ |
418 |
|
$ |
533,730 |
$ |
415,135 |
|
|
|
Operating Income (Loss) |
$ |
36,889 |
$ |
40,999 |
$ |
(4,199 |
) |
$ |
(10,920 |
) |
$ |
(29,418 |
) |
$ |
(24,808 |
) |
$ |
3,272 |
$ |
5,271 |
|
|
|
EBITDA1 |
$ |
81,190 |
$ |
82,341 |
$ |
58,899 |
|
$ |
16,740 |
|
$ |
(26,652 |
) |
$ |
(20,793 |
) |
$ |
113,437 |
$ |
78,288 |
|
|
|
Adjusted EBITDA2 |
$ |
82,219 |
$ |
82,276 |
$ |
62,140 |
|
$ |
23,820 |
|
$ |
(22,665 |
) |
$ |
(19,380 |
) |
$ |
121,694 |
$ |
86,716 |
|
|
|
Capital Expenditures** |
$ |
53,270 |
$ |
32,485 |
$ |
60,055 |
|
$ |
36,157 |
|
$ |
633 |
|
$ |
2,280 |
|
$ |
113,958 |
$ |
70,922 |
|
|
|
|
|
|
|
|
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|
*For this table presentation, the Renewable
Energy segment results and Corporate and Other segment results were
combined. See table 4 for the separate presentation of the
financial performance of these segments.
**Includes reimbursable capital expenditures of
$0.1 million and $4.0 million for the three and nine months ended
September 30, 2022, respectively, and $2.2 million and $8.7 million
for the three and nine months ended September 30, 2021,
respectively.
International Telecom
International Telecom revenues4 were $90.0
million for the quarter, up 6% year over year. This increase was
the result of mobile and broadband subscriber growth in the
segment. The growth in fixed revenues was partially offset by a
scheduled step down in federal high-cost support subsidies for the
U.S. Virgin Islands. Operating expenses for the quarter increased
incrementally year over year as the Company invested in growing its
market share in mobile as well as expanding and enhancing its
networks and sales and marketing capabilities. Operating income was
$13.4 million and Adjusted EBITDA2 was $27.9 million in the
quarter, compared with operating income of $13.2 million and
Adjusted EBITDA2 of $26.9 million in the prior year period. The
year over year increases in operating income and Adjusted EBITDA2
were mainly due to the same factors that drove higher segment
revenue, partially offset by higher operating expenditures in the
third quarter.
US Telecom
US Telecom revenues5 were $92.2 million in
the quarter, up 13% year over year. Business and carrier services
revenues accounted for approximately 70% of the segment’s services
revenues in the third quarter of 2022. The increase in segment
revenues was mainly due to the improved revenue performance of
Alaska Communications as well as the addition of three weeks of
Alaska Communications results in the third quarter of 2022, versus
a partial quarter of Alaska Communications results in the same
period a year ago3. The year over year increase in segment revenues
was partially offset by reduced legacy wholesale wireless revenues
and lower FirstNet construction revenues due to the timing of
completed sites. Operating income was $0.7 million in the quarter
improving from an operating loss of $9.8 million in the same period
a year ago. The year over year improvement in operating income was
mainly due to a reduction in transaction fees which offset an
increase in depreciation in the current quarter. Adjusted EBITDA2
was $21.9 million in the quarter, increasing by 34% from $16.4
million in the same period a year ago, mainly due to the same
factors which led to higher revenues in the third quarter of 2022.
By the end of the third quarter of 2022, the
Company had completed and activated approximately 70% of the total
sites related to the network build portion of its long-term
FirstNet Agreement. The Company now expects to complete an
additional 5% of the total build by the end of 2022 and the
remainder of the sites in 2023. Revenues from the build will be
largely offset by construction costs incurred in the same
period.
Balance Sheet and Cash Flow
Highlights
As of September 30, 2022, the Company had total
cash, cash equivalents and restricted cash of $77.8 million and
total debt of $355.7 million, compared with $80.7 million of cash,
cash equivalents and restricted cash and $331.8 million of total
debt as of December 31, 2021.
Net cash provided by operating activities was
$79.0 million for the nine months ended September 30, 2022,
compared with $47.7 million for the nine months ended September 30,
2021. The year over year increase in operating cash flow was due to
an increase of $35.1 million in EBITDA for the first nine months of
2022, which more than offset the net cash used from changes in
working capital. For the nine months ended September 30, 2022, the
Company used net cash of $81.8 million for investing and financing
activities, compared to $50.3 million for the nine months ended
September 30, 2021. The increase was principally due to capital
expenditures, which were $114.0 million in the current year. For
the nine months ended September 30, 2022, additional uses of cash
were from $4.6 million of purchases of minority equity interests in
the Company’s subsidiaries, and an aggregate of $9.0 million in
dividends to Company stockholders and repurchases of the Company’s
common stock. These uses of cash were partially offset by net
borrowings of $23.7 million under revolving credit agreements and
$15.7 million in proceeds received from the sale of investments.
Quarterly Dividends and Stock
Buybacks
On September 15, 2022, ATN announced that its
Board of Directors had declared a quarterly dividend of $0.17 per
share, payable on October 7, 2022, on all common shares outstanding
to stockholders of record as of September 30, 2022. For the nine
months ended September 30, 2022, the Company utilized cash on hand
to repurchase $0.9 million of its common stock.
2022 Guidance and Outlook
The Company is reiterating its outlook for its
2022 financial performance and its targets to be achieved in the
three-year period ending in 2024, originally provided on February
23, 2022, within its fourth quarter and full year 2021 earnings
release. The Company’s full year 2022 capital investment plan
is $150 to $160 million (net of reimbursed amounts), primarily in
network expansion and upgrades, which are expected to drive
subscriber and revenue growth in the following periods. The Company
continues to expect its Adjusted EBITDA to be in the range of $165
to $170 million for the full year6.
Strategic Progress Highlights
The Company believes that its Glass and Steel™
and “First-to-Fiber” market strategies are important for its
long-term success and sees a rapidly growing need for more
bandwidth and reliable connectivity. Deploying capital for growth
in fiber and fiber-fed high-speed data solutions to more homes,
businesses, schools, health care facilities, cell sites, and
communities, has led to increases in the Company’s fiber footprint
and broadband subscriber levels.
From January 1, 2020, to September 30, 2022, the
Company has:
- Added 350,000 premises passed by broadband, with 56,000 of the
total group passed by higher-speed solutions7.
- Added approximately 65,900 broadband subscribers.
- Increased terrestrial fiber facilities by adding over 6,730
route miles.
- Expanded mobile data capacity in all markets and added
approximately 70,000 mobile subscribers.
Conference Call Information
ATN will host a conference call on Thursday, October 27, 2022,
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. Key details regarding the call are as
follows:
Call Date: Thursday, October 27, 2022
Call Time: 10:00 a.m. ET Webcast
Link: https://edge.media-server.com/mmc/p/g5pr763r
Audio
Conference: https://register.vevent.com/register/BIa8f47e6dccb543a1a66884ce69a9e02b
Live Call Participant
Link: https://edge.media-server.com/mmc/console/client/
Webcast Link Instructions You
can listen to a live audio webcast of the conference call 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 locations
beginning at approximately 1:00 pm ET on the same day.
The Company also will provide an investor presentation as a
supplement to the call on the “Events & Presentations” section
of its Investor Relations website.
Live Call Participant
Instructions To participate in the live call, you must
register using the “Live Call Participant Link” above. Once
registered, you will receive dial-in numbers and a unique PIN
number. When you dial in, you will input your PIN and be routed
into the call. If you register and forget your PIN, or lose the
registration confirmation email, simply re-register to receive a
new PIN.
About ATN
ATN International, Inc. (Nasdaq: ATNI),
headquartered in Beverly, Massachusetts, is a provider of digital
infrastructure and communications services 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.
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, EBITDA,
Adjusted EBITDA, and capital investments; demand for
the Company’s services and industry trends; construction progress
under the Company’s FirstNet agreement and the effect such progress
will have on the Company’s financial results; the Company’s receipt
of certain grant awards; expectations regarding the benefits of the
Company’s acquisition of Alaska Communications; the Company’s
liquidity; the organization of the Company’s business; our
expansion into growing markets; 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 Company’s ability to successfully
transition its US Telecom business away from wholesale wireless to
other carrier and consumer-based services; (2) 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; (3) the
Company’s ability to realize cost synergies and expansion plans for
its Alaska Communications business; (4) the Company’s ability to
satisfy the needs and demands of the Company’s major carrier
customers; (5) 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; (6)
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; (7) 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; (8)
economic, political and other risks and opportunities facing the
Company’s operations, including those resulting from the pandemic,
geopolitical tensions, including the Ukraine invasion, inflation,
and other current macroeconomic headwinds including increased costs
and supply chain disruptions; (9) the loss of, or an inability to
recruit skilled personnel in the Company’s various jurisdictions,
including key members of management; (10) the Company’s ability to
find investment or acquisition or disposition opportunities that
fit the strategic goals of the Company; (11) the occurrence of
weather events and natural catastrophes and the Company’s ability
to secure the appropriate level of insurance coverage for these
assets; (12) increased competition; (13) the adequacy and expansion
capabilities of the Company’s network capacity and customer service
system to support the Company’s customer growth; and, (14) the
Company’s 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, 2021, filed with the SEC on
March 16, 2022 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.
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, Adjusted EBITDA and
Net Debt Ratio 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,
one-time impairment or special charges and the gain (loss) on
disposition of assets. Net Debt Ratio is defined as total debt less
cash and cash equivalents divided by the four quarters ended total
Adjusted EBITDA at the measurement date. 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.
Contact:
Justin D. BenincasaChief Financial OfficerATN
International, Inc.978-619-1300
Polly Pearson Investor Relations
ATNI@investorrelations.com
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Table
1 |
|
|
ATN
International, Inc. |
|
|
Unaudited
Condensed Consolidated Balance Sheets |
|
|
(in Thousands) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
2022 |
|
2021 |
|
|
Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
76,714 |
|
$ |
79,601 |
|
|
Restricted cash |
|
1,095 |
|
|
1,096 |
|
|
Customer receivable |
|
4,813 |
|
|
4,145 |
|
|
Other current assets |
|
149,902 |
|
|
147,775 |
|
|
|
|
|
|
|
|
Total current assets |
|
232,524 |
|
|
232,617 |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
951,276 |
|
|
943,209 |
|
|
Operating lease right-of-use assets |
|
109,564 |
|
|
118,843 |
|
|
Customer receivable - long term |
|
43,382 |
|
|
39,652 |
|
|
Goodwill and other intangible assets, net |
|
187,376 |
|
|
198,164 |
|
|
Other assets |
|
72,547 |
|
|
76,119 |
|
|
|
|
|
|
|
|
Total
assets |
$ |
1,596,669 |
|
$ |
1,608,604 |
|
|
|
|
|
|
|
|
Liabilities,
Redeemable Non-controlling interests and Stockholders’ Equity: |
|
|
|
|
|
Current portion of long-term debt |
$ |
3,786 |
|
$ |
4,665 |
|
|
Current portion of customer receivable credit facility |
|
5,696 |
|
|
4,620 |
|
|
Taxes payable |
|
6,309 |
|
|
5,681 |
|
|
Current portion of lease liabilities |
|
17,399 |
|
|
16,201 |
|
|
Other current liabilities |
|
181,135 |
|
|
189,777 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
214,325 |
|
|
220,944 |
|
|
|
|
|
|
|
|
Long-term debt, net of current portion |
$ |
351,866 |
|
$ |
327,111 |
|
|
Customer receivable credit facility, net of current portion |
|
37,841 |
|
|
30,148 |
|
|
Deferred income taxes |
|
15,653 |
|
|
21,460 |
|
|
Lease liabilities |
|
83,489 |
|
|
91,719 |
|
|
Other long-term liabilities |
|
134,707 |
|
|
142,033 |
|
|
|
|
|
|
|
|
Total
liabilities |
|
837,881 |
|
|
833,415 |
|
|
|
|
|
|
|
|
Redeemable
Non-controlling interests |
|
76,398 |
|
|
72,936 |
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
Total ATN International, Inc.’s stockholders’ equity |
|
584,467 |
|
|
601,250 |
|
|
Non-controlling interests |
|
97,923 |
|
|
101,003 |
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
682,390 |
|
|
702,253 |
|
|
|
|
|
|
|
|
Total
liabilities, Redeemable Non-controlling interests and stockholders’
equity |
$ |
1,596,669 |
|
$ |
1,608,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications services |
|
|
|
|
$ |
173,977 |
|
|
$ |
155,298 |
|
|
$ |
512,315 |
|
|
$ |
378,897 |
|
|
|
Construction |
|
|
|
|
|
3,332 |
|
|
|
6,417 |
|
|
|
8,615 |
|
|
|
28,049 |
|
|
|
Other |
|
|
|
|
|
4,904 |
|
|
|
5,045 |
|
|
|
12,800 |
|
|
|
8,189 |
|
|
|
Total revenue |
|
|
|
|
|
182,213 |
|
|
|
166,760 |
|
|
|
533,730 |
|
|
|
415,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses (excluding depreciation and amortization unless otherwise
indicated): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services and other |
|
|
|
|
|
78,949 |
|
|
|
70,732 |
|
|
|
229,821 |
|
|
|
168,717 |
|
|
|
Cost of construction revenue |
|
|
|
|
|
3,321 |
|
|
|
5,855 |
|
|
|
8,640 |
|
|
|
27,997 |
|
|
|
Selling, general and administrative |
|
|
|
|
|
58,056 |
|
|
|
53,360 |
|
|
|
173,575 |
|
|
|
131,705 |
|
|
|
Transaction-related charges |
|
|
|
|
|
3,416 |
|
|
|
5,696 |
|
|
|
4,381 |
|
|
|
7,823 |
|
|
|
Depreciation |
|
|
|
|
|
33,312 |
|
|
|
28,875 |
|
|
|
100,421 |
|
|
|
68,693 |
|
|
|
Amortization of intangibles from acquisitions |
|
|
|
|
|
3,236 |
|
|
|
3,480 |
|
|
|
9,744 |
|
|
|
4,324 |
|
|
|
(Gain) loss on disposition of assets |
|
|
|
|
|
484 |
|
|
|
(256 |
) |
|
|
3,876 |
|
|
|
605 |
|
|
|
Total
operating expenses |
|
|
|
|
|
180,774 |
|
|
|
167,742 |
|
|
|
530,458 |
|
|
|
409,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
|
|
1,439 |
|
|
|
(982 |
) |
|
|
3,272 |
|
|
|
5,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
(5,475 |
) |
|
|
(3,396 |
) |
|
|
(13,066 |
) |
|
|
(5,640 |
) |
|
|
Other income (expense) |
|
|
|
|
|
1,904 |
|
|
|
(385 |
) |
|
|
3,379 |
|
|
|
1,923 |
|
|
|
Other income, net |
|
|
|
|
(3,571 |
) |
|
|
(3,781 |
) |
|
|
(9,687 |
) |
|
|
(3,717 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
|
|
(2,132 |
) |
|
|
(4,763 |
) |
|
|
(6,415 |
) |
|
|
1,554 |
|
|
|
Income tax expense (benefit) |
|
|
|
|
|
(360 |
) |
|
|
(288 |
) |
|
|
(1,378 |
) |
|
|
(1,535 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
|
|
|
|
(1,772 |
) |
|
|
(4,475 |
) |
|
|
(5,037 |
) |
|
|
3,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to non-controlling interests, net |
|
|
|
|
|
(1,011 |
) |
|
|
1,856 |
|
|
|
782 |
|
|
|
(986 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to ATN International, Inc. stockholders |
|
|
|
|
$ |
(2,783 |
) |
|
$ |
(2,619 |
) |
|
$ |
(4,255 |
) |
|
$ |
2,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per weighted average share attributable to ATN
International, Inc. stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net Income (loss) |
|
|
|
|
$ |
(0.25 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.49 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Income (loss) |
|
|
|
|
$ |
(0.25 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.49 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
15,763 |
|
|
|
15,860 |
|
|
|
15,746 |
|
|
|
15,891 |
|
|
|
Diluted |
|
|
|
|
|
15,763 |
|
|
|
15,860 |
|
|
|
15,746 |
|
|
|
15,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3 |
|
ATN
International, Inc. |
|
Unaudited
Condensed Consolidated Cash Flow Statement |
|
(in Thousands) |
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
Net income
(loss) |
$ |
(5,037 |
) |
|
$ |
3,089 |
|
|
Depreciation |
|
100,421 |
|
|
|
68,693 |
|
|
Amortization
of intangibles from acquisitions |
|
9,744 |
|
|
|
4,324 |
|
|
Provision
for doubtful accounts |
|
4,969 |
|
|
|
3,303 |
|
|
Amortization
of debt discount and debt issuance costs |
|
1,512 |
|
|
|
767 |
|
|
Loss on
disposition of long-lived assets |
|
3,876 |
|
|
|
605 |
|
|
Stock-based
compensation |
|
5,697 |
|
|
|
5,116 |
|
|
Deferred
income taxes |
|
(6,619 |
) |
|
|
(5,939 |
) |
|
Gain on
equity investments |
|
(5,617 |
) |
|
|
(647 |
) |
|
Loss on
pension settlement |
|
1,725 |
|
|
|
- |
|
|
Unrealized
(gain) loss on foreign currency |
|
- |
|
|
|
(81 |
) |
|
Increase in
customer receivable |
|
(4,399 |
) |
|
|
(25,684 |
) |
|
Change in
prepaid and accrued income taxes |
|
8,369 |
|
|
|
(2,106 |
) |
|
Change in
other operating assets and liabilities |
|
(35,666 |
) |
|
|
(3,724 |
) |
|
|
|
|
|
|
Net cash provided by operating activities |
|
78,975 |
|
|
|
47,716 |
|
|
|
|
|
|
|
Capital
expenditures |
|
(109,944 |
) |
|
|
(62,222 |
) |
|
Reimbursable
capital expenditures |
|
(4,015 |
) |
|
|
(8,700 |
) |
|
Proceeds
from sale of investments |
|
15,745 |
|
|
|
- |
|
|
Spectrum
deposit refund |
|
1,136 |
|
|
|
- |
|
|
Purchase of
businesses, net of $11.9 of acquired cash |
|
- |
|
|
|
(340,152 |
) |
|
Purchases of
strategic investments |
|
(2,750 |
) |
|
|
(6,399 |
) |
|
Receipt of
government grants |
|
2,668 |
|
|
|
7,094 |
|
|
Proceeds
from the disposition of long-lived assets |
|
683 |
|
|
|
- |
|
|
Sale of
business, net of transferred cash of $0 and $0.9 million,
respectively |
|
1,835 |
|
|
|
18,597 |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(94,642 |
) |
|
|
(391,782 |
) |
|
|
|
|
|
|
Dividends
paid on common stock |
|
(8,028 |
) |
|
|
(8,118 |
) |
|
Distributions to non-controlling interests |
|
(1,375 |
) |
|
|
(4,823 |
) |
|
Business
combination contingent consideration |
|
(1,718 |
) |
|
|
- |
|
|
Finance
lease repayments |
|
(820 |
) |
|
|
- |
|
|
Term loan -
repayments |
|
(953 |
) |
|
|
(2,821 |
) |
|
New
borrowings, net of repayments |
|
- |
|
|
|
285,000 |
|
|
Proceeds
from mezzanine equity |
|
- |
|
|
|
71,533 |
|
|
Payment of
debt issuance costs |
|
- |
|
|
|
(6,568 |
) |
|
Revolving
credit facility – borrowings |
|
68,711 |
|
|
|
- |
|
|
Revolving
credit facility – repayments |
|
(45,000 |
) |
|
|
- |
|
|
Proceeds
from customer receivable credit facility |
|
12,225 |
|
|
|
27,540 |
|
|
Repayment of
customer receivable credit facility |
|
(3,543 |
) |
|
|
(1,005 |
) |
|
Purchases of
common stock - stock-based compensation |
|
(1,169 |
) |
|
|
(1,713 |
) |
|
Proceeds
from stock option exercises |
|
- |
|
|
|
383 |
|
|
Purchases of
common stock - share repurchase plan |
|
(942 |
) |
|
|
(4,836 |
) |
|
Repurchases
of non-controlling interests, net |
|
(4,609 |
) |
|
|
(13,139 |
) |
|
|
|
|
|
|
Net cash provided by used in financing activities |
|
12,779 |
|
|
|
341,433 |
|
|
|
|
|
|
|
Net change
in total cash, cash equivalents and restricted cash |
|
(2,888 |
) |
|
|
(2,633 |
) |
|
|
|
|
|
|
Total cash,
cash equivalents and restricted cash, beginning of period |
|
80,697 |
|
|
|
104,997 |
|
|
|
|
|
|
|
Total cash,
cash equivalents and restricted cash, end of period |
$ |
77,809 |
|
|
$ |
102,364 |
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 |
|
ATN
International, Inc. |
|
Selected
Segment Financial Information |
|
(In
Thousands) |
|
|
|
|
|
|
|
|
For the three months ended September 30, 2022 is as follows: |
|
|
|
|
|
|
|
|
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total |
|
|
|
|
|
|
|
|
Statement of Operations Data: |
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
Mobility |
|
|
|
|
|
|
Business |
$ |
3,706 |
|
$ |
298 |
|
$ |
- |
|
$ |
- |
|
$ |
4,004 |
|
|
Consumer |
|
22,776 |
|
|
2,058 |
|
|
- |
|
|
- |
|
|
24,834 |
|
|
Total |
$ |
26,482 |
|
$ |
2,356 |
|
$ |
- |
|
$ |
- |
|
$ |
28,838 |
|
|
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
|
Business |
$ |
18,578 |
|
$ |
32,509 |
|
$ |
- |
|
$ |
- |
|
$ |
51,087 |
|
|
Consumer |
|
39,989 |
|
|
19,143 |
|
|
- |
|
|
- |
|
|
59,132 |
|
|
Total |
$ |
58,567 |
|
$ |
51,652 |
|
$ |
- |
|
$ |
- |
|
$ |
110,219 |
|
|
|
|
|
|
|
|
|
Carrier
Services |
$ |
3,220 |
|
$ |
31,360 |
|
$ |
- |
|
$ |
- |
|
$ |
34,580 |
|
|
Other |
|
340 |
|
|
- |
|
|
- |
|
|
- |
|
|
340 |
|
|
|
|
|
|
|
|
|
Total Communications Services |
$ |
88,609 |
|
$ |
85,368 |
|
$ |
- |
|
$ |
- |
|
$ |
173,977 |
|
|
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
3,332 |
|
$ |
- |
|
$ |
- |
|
$ |
3,332 |
|
|
|
|
|
|
|
|
|
Managed services |
$ |
1,398 |
|
$ |
3,506 |
|
$ |
- |
|
$ |
- |
|
$ |
4,904 |
|
|
Total Other |
$ |
1,398 |
|
$ |
3,506 |
|
$ |
- |
|
$ |
- |
|
$ |
4,904 |
|
|
|
|
|
|
|
|
|
Total Revenue |
$ |
90,007 |
|
$ |
92,206 |
|
$ |
- |
|
$ |
- |
|
$ |
182,213 |
|
|
|
|
|
|
|
|
|
Depreciation |
$ |
14,126 |
|
$ |
18,341 |
|
$ |
- |
|
$ |
846 |
|
$ |
33,313 |
|
|
Amortization
of intangibles from acquisitions |
$ |
380 |
|
$ |
2,856 |
|
$ |
- |
|
$ |
- |
|
$ |
3,236 |
|
|
Total
operating expenses |
$ |
76,647 |
|
$ |
91,490 |
|
$ |
711 |
|
$ |
11,926 |
|
$ |
180,774 |
|
|
Operating
income (loss) |
$ |
13,360 |
|
$ |
716 |
|
$ |
(711 |
) |
$ |
(11,926 |
) |
$ |
1,439 |
|
|
Stock-based
compensation |
$ |
54 |
|
$ |
132 |
|
$ |
- |
|
$ |
1,483 |
|
$ |
1,669 |
|
|
Non-controlling interest ( net income or (loss) ) |
$ |
(2,391 |
) |
$ |
1,380 |
|
$ |
- |
|
$ |
- |
|
$ |
(1,011 |
) |
|
|
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
|
EBITDA
(1) |
$ |
27,866 |
|
$ |
21,913 |
|
$ |
(711 |
) |
$ |
(11,080 |
) |
$ |
37,988 |
|
|
Adjusted
EBITDA (2) |
$ |
27,863 |
|
$ |
21,912 |
|
$ |
(11 |
) |
$ |
(7,877 |
) |
$ |
41,887 |
|
|
|
|
|
|
|
|
|
Balance Sheet Data (at September 30, 2022): |
|
|
|
|
|
|
Cash, cash
equivalents and investments |
$ |
39,413 |
|
$ |
32,961 |
|
$ |
- |
|
$ |
5,735 |
|
$ |
78,109 |
|
|
Total
current assets |
|
110,610 |
|
|
114,960 |
|
|
- |
|
|
6,954 |
|
|
232,524 |
|
|
Fixed
assets, net |
|
459,553 |
|
|
483,817 |
|
|
- |
|
|
7,906 |
|
|
951,276 |
|
|
Total
assets |
|
641,307 |
|
|
872,650 |
|
|
- |
|
|
82,712 |
|
|
1,596,669 |
|
|
Total
current liabilities |
|
84,848 |
|
|
101,132 |
|
|
- |
|
|
28,345 |
|
|
214,325 |
|
|
Total debt,
including current portion |
|
63,386 |
|
|
221,265 |
|
|
- |
|
|
71,000 |
|
|
355,651 |
|
|
|
|
|
|
|
|
|
|
|
* 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, 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 |
|
|
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
6,417 |
|
$ |
- |
|
$ |
- |
|
$ |
6,417 |
|
|
|
|
|
|
|
|
|
Managed services |
$ |
1,252 |
|
$ |
3,793 |
|
$ |
- |
|
$ |
- |
|
$ |
5,045 |
|
|
|
|
|
|
|
|
|
Total Other |
$ |
1,252 |
|
$ |
3,793 |
|
$ |
- |
|
$ |
- |
|
$ |
5,045 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
* 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, 2022 is as follows: |
|
|
|
|
|
|
|
|
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total |
|
|
|
|
|
|
|
|
Statement of Operations Data: |
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
Mobility |
|
|
|
|
|
|
Business |
$ |
10,997 |
|
$ |
973 |
|
$ |
- |
|
$ |
- |
|
$ |
11,970 |
|
|
Consumer |
|
64,025 |
|
|
5,063 |
|
|
- |
|
|
- |
|
|
69,088 |
|
|
Total |
$ |
75,022 |
|
$ |
6,036 |
|
$ |
- |
|
$ |
- |
|
$ |
81,058 |
|
|
|
|
|
|
|
|
|
Fixed |
|
|
|
|
|
|
Business |
$ |
52,827 |
|
$ |
91,521 |
|
$ |
- |
|
$ |
- |
|
$ |
144,348 |
|
|
Consumer |
|
122,435 |
|
|
57,279 |
|
|
- |
|
|
- |
|
|
179,714 |
|
|
Total |
$ |
175,262 |
|
$ |
148,800 |
|
$ |
- |
|
$ |
- |
|
$ |
324,062 |
|
|
|
|
|
|
|
|
|
Carrier Services |
$ |
10,042 |
|
$ |
96,102 |
|
$ |
- |
|
$ |
- |
|
$ |
106,144 |
|
|
Other |
|
1,051 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,051 |
|
|
|
|
|
|
|
|
|
Total Communications Services |
$ |
261,377 |
|
$ |
250,938 |
|
$ |
- |
|
$ |
- |
|
$ |
512,315 |
|
|
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
8,615 |
|
$ |
- |
|
$ |
- |
|
$ |
8,615 |
|
|
|
|
|
|
|
|
|
Managed services |
$ |
3,820 |
|
$ |
8,980 |
|
$ |
- |
|
$ |
- |
|
$ |
12,800 |
|
|
Total Other |
$ |
3,820 |
|
$ |
8,980 |
|
$ |
- |
|
$ |
- |
|
$ |
12,800 |
|
|
|
|
|
|
|
|
|
Total Revenue |
$ |
265,197 |
|
$ |
268,533 |
|
$ |
- |
|
$ |
- |
|
$ |
533,730 |
|
|
|
|
|
|
|
|
|
Depreciation |
$ |
43,109 |
|
$ |
54,546 |
|
$ |
- |
|
$ |
2,766 |
|
$ |
100,421 |
|
|
Amortization
of intangibles from acquisitions |
$ |
1,192 |
|
$ |
8,552 |
|
$ |
- |
|
$ |
- |
|
$ |
9,744 |
|
|
Total
operating expenses |
$ |
228,308 |
|
$ |
272,732 |
|
$ |
755 |
|
$ |
28,663 |
|
$ |
530,458 |
|
|
Operating
income (loss) |
$ |
36,889 |
|
$ |
(4,199 |
) |
$ |
(755 |
) |
$ |
(28,663 |
) |
$ |
3,272 |
|
|
Stock-based
compensation |
$ |
170 |
|
$ |
301 |
|
$ |
- |
|
$ |
5,225 |
|
$ |
5,696 |
|
|
Non-controlling interest ( net income or (loss) ) |
$ |
(4,830 |
) |
$ |
5,612 |
|
$ |
- |
|
$ |
- |
|
$ |
782 |
|
|
|
|
|
|
|
|
|
Non
GAAP measures: |
|
|
|
|
|
|
EBITDA
(1) |
$ |
81,190 |
|
$ |
58,899 |
|
$ |
(755 |
) |
$ |
(25,897 |
) |
$ |
113,437 |
|
|
Adjusted
EBITDA (2) |
$ |
82,219 |
|
$ |
62,140 |
|
$ |
(55 |
) |
$ |
(22,610 |
) |
$ |
121,694 |
|
|
|
|
|
|
|
|
|
* 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 |
|
|
|
|
|
|
|
|
|
Construction |
$ |
- |
|
$ |
28,049 |
|
$ |
- |
|
$ |
- |
|
$ |
28,049 |
|
|
|
|
|
|
|
|
|
Renewable Energy |
$ |
- |
|
$ |
- |
|
$ |
418 |
|
$ |
- |
|
$ |
418 |
|
|
Managed services |
|
3,978 |
|
|
3,793 |
|
|
- |
|
|
- |
|
|
7,771 |
|
|
|
|
|
|
|
|
|
Total Other |
$ |
3,978 |
|
$ |
3,793 |
|
$ |
418 |
|
$ |
- |
|
$ |
8,189 |
|
|
|
|
|
|
|
|
|
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) |
|
at December 31, 2021 |
|
|
|
|
|
|
|
|
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total |
|
|
|
|
|
|
|
|
Balance Sheet Data (at December 31, 2021): |
|
|
|
|
|
|
Cash, cash
equivalents and investments |
$ |
43,128 |
|
$ |
28,486 |
|
$ |
659 |
|
$ |
7,628 |
|
$ |
79,901 |
|
|
Total
current assets |
|
108,677 |
|
|
111,741 |
|
|
3,585 |
|
|
8,614 |
|
|
232,617 |
|
|
Fixed
assets, net |
|
452,856 |
|
|
480,250 |
|
|
- |
|
|
10,103 |
|
|
943,209 |
|
|
Total
assets |
|
630,515 |
|
|
877,041 |
|
|
17,481 |
|
|
83,567 |
|
|
1,608,604 |
|
|
Total
current liabilities |
|
91,090 |
|
|
108,950 |
|
|
356 |
|
|
20,548 |
|
|
220,944 |
|
|
Total debt,
including current portion |
|
64,243 |
|
|
240,802 |
|
|
- |
|
|
61,499 |
|
|
366,544 |
|
|
|
|
|
|
|
|
|
(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 |
|
|
|
|
|
|
|
|
|
|
As
of |
As
of |
As
of |
As
of |
|
|
|
December
31, |
March
31, |
June
30, |
September
30, |
|
|
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Consolidated Operational Data #: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiber Route
Miles |
|
|
9,058 |
|
|
9,127 |
|
|
9,399 |
|
|
9,756 |
|
|
Fiber
Connected Towers * |
|
|
364 |
|
|
364 |
|
|
364 |
|
|
404 |
|
|
Owned Towers
** |
|
|
404 |
|
|
404 |
|
|
404 |
|
|
404 |
|
|
|
|
|
|
|
|
|
Broadband
Homes Passed - total |
|
|
565,300 |
|
|
565,600 |
|
|
569,800 |
|
|
613,600 |
|
|
Broadband
Homes Passed - by HSD *** |
|
|
190,400 |
|
|
193,300 |
|
|
199,800 |
|
|
219,300 |
|
|
% Broadband
Homes Passed by HSD *** |
|
|
34 |
% |
|
34 |
% |
|
35 |
% |
|
36 |
% |
|
|
|
|
|
|
|
|
Broadband
Customers |
|
|
203,700 |
|
|
204,000 |
|
|
204,500 |
|
|
205,200 |
|
|
HSD ***
Capable Customers |
|
|
98,100 |
|
|
101,800 |
|
|
105,600 |
|
|
110,700 |
|
|
% HSD***
Capable Customers |
|
|
48 |
% |
|
50 |
% |
|
52 |
% |
|
54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
September
30, |
December
31, |
March
31, |
June
30, |
September
30, |
|
|
|
2021 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
International Telecom Operational Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile - Subscribers # |
|
|
|
|
|
|
Pre-Paid |
|
276,400 |
|
|
285,800 |
|
|
291,900 |
|
|
297,000 |
|
|
301,800 |
|
|
Post-Paid |
|
49,200 |
|
|
49,800 |
|
|
50,200 |
|
|
51,900 |
|
|
54,200 |
|
|
Total |
|
325,600 |
|
|
335,600 |
|
|
342,100 |
|
|
348,900 |
|
|
356,000 |
|
|
|
|
|
|
|
|
|
Mobile - Blended Churn |
|
2.68 |
% |
|
2.73 |
% |
|
2.86 |
% |
|
2.80 |
% |
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# Data presented may
differ from prior reported quarter to reflect more accurate data
and/or changes in calculation methodology and process. |
|
|
|
|
|
|
|
|
* All cell sites, including rooftops, that the company serves with
its own fiber |
|
|
|
|
|
|
|
|
|
|
|
** All geographically distinct cell sites, including towers and
other structures |
|
|
|
|
|
|
|
|
|
|
|
*** HSD is
defined as download speeds >100 Mbps |
|
|
|
|
|
|
|
|
|
|
|
Table 5 |
|
ATN
International, Inc. |
|
Reconciliation of Non-GAAP Measures |
|
(In
Thousands) |
|
|
|
|
|
|
|
|
For the three months ended September 30, 2022 is as follows: |
|
|
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
13,360 |
|
$ |
716 |
|
$ |
(711 |
) |
$ |
(11,926 |
) |
$ |
1,439 |
|
|
Depreciation
expense |
|
14,126 |
|
|
18,341 |
|
|
- |
|
|
846 |
|
|
33,313 |
|
|
Amortization
of intangibles from acquisitions |
|
380 |
|
|
2,856 |
|
|
- |
|
|
- |
|
|
3,236 |
|
|
EBITDA |
$ |
27,866 |
|
$ |
21,913 |
|
$ |
(711 |
) |
$ |
(11,080 |
) |
$ |
37,988 |
|
|
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
212 |
|
|
- |
|
|
3,203 |
|
|
3,415 |
|
|
(Gain) Loss
on disposition of assets |
|
(3 |
) |
|
(213 |
) |
|
700 |
|
|
- |
|
|
484 |
|
|
ADJUSTED EBITDA |
$ |
27,863 |
|
$ |
21,912 |
|
$ |
(11 |
) |
$ |
(7,877 |
) |
$ |
41,887 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
90,007 |
|
$ |
92,206 |
|
$ |
- |
|
$ |
- |
|
$ |
182,213 |
|
|
ADJUSTED EBITDA MARGIN |
|
31.0 |
% |
|
23.8 |
% |
NA |
NA |
|
23.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2021 is as follows: |
|
|
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
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 |
) |
|
- |
|
|
(256 |
) |
|
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 nine months ended September 30, 2022 is as follows: |
|
|
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
36,889 |
|
$ |
(4,199 |
) |
$ |
(755 |
) |
$ |
(28,663 |
) |
$ |
3,272 |
|
|
Depreciation
expense |
|
43,109 |
|
|
54,546 |
|
|
- |
|
|
2,766 |
|
|
100,421 |
|
|
Amortization
of intangibles from acquisitions |
|
1,192 |
|
|
8,552 |
|
|
- |
|
|
- |
|
|
9,744 |
|
|
EBITDA |
$ |
81,190 |
|
$ |
58,899 |
|
$ |
(755 |
) |
$ |
(25,897 |
) |
$ |
113,437 |
|
|
|
|
|
|
|
|
|
Transaction-related charges |
|
- |
|
|
1,094 |
|
|
- |
|
|
3,287 |
|
|
4,381 |
|
|
(Gain) Loss
on disposition of assets |
|
1,029 |
|
|
2,147 |
|
|
700 |
|
|
- |
|
|
3,876 |
|
|
ADJUSTED EBITDA |
$ |
82,219 |
|
$ |
62,140 |
|
$ |
(55 |
) |
$ |
(22,610 |
) |
$ |
121,694 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
265,197 |
|
$ |
268,533 |
|
$ |
- |
|
$ |
- |
|
$ |
533,730 |
|
|
ADJUSTED EBITDA MARGIN |
|
31.0 |
% |
|
23.1 |
% |
NA |
NA |
|
22.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, 2021 is as follows: |
|
|
|
|
|
|
|
|
|
InternationalTelecom |
US Telecom |
RenewableEnergy |
Corporate andOther * |
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 |
% |
|
-26.3 |
% |
NA |
|
20.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6 |
|
|
|
|
|
|
|
|
|
|
|
|
ATN
International, Inc. |
|
Non GAAP
Measure - Net Debt Ratio |
|
(in
Thousands, Except per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt * |
|
|
|
|
$ |
3,786 |
|
$ |
4,665 |
|
|
Long-term
debt, net of current portion * |
|
|
|
|
|
351,866 |
|
|
327,111 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
debt |
|
|
|
|
$ |
355,652 |
|
$ |
331,776 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Cash
and cash equivalents |
|
|
|
|
|
76,714 |
|
|
79,601 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Debt |
|
|
|
|
$ |
278,938 |
|
$ |
252,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA - for the four quarters ended |
|
|
|
|
$ |
164,022 |
|
$ |
129,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
Ratio |
|
|
|
|
|
1.70 |
|
|
1.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes
Customer Receivable and Credit Facility |
|
|
|
|
|
|
|
|
___________________________________________________________________________________________________________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.3 ATN completed its
joint acquisition of Alaska Communications on July 22, 2021.4
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. 5 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. 6 For the Company’s 2022 Guidance Adjusted
EBITDA, the Company is not able to provide without unreasonable
effort the most directly comparable GAAP financial measures, or
reconciliations to such GAAP financial measure, 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.7 Defined as download
speeds of greater than 100 MBPS.
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