ATN Reports Second-Quarter 2023 Results; Reiterates Outlook

“First-to-Fiber” and “Glass & SteelTM” Strategies Drive Year Over Year Growth

  • Grew revenue 4% to $186.4 million
  • Increased total high-speed subscribers by 22%
  • Expanded broadband homes passed by high-speed data services by 66%
  • Capital expenditures were $38.9 million (net of $4.9 million of reimbursements)

Operating Income and Adjusted EBITDA Improvements Follow Subscriber and Revenue Growth

  • Increased net income to $0.8 million, or a $(0.03) loss per share; operating income increased to $2.4 million
  • Increased Adjusted EBITDA1 by 10% to $45.8 million

Reiterates 2023 Outlook3

  • Adjusted EBITDA expected to be in the range of $183 million to $193 million
  • Capital expenditures expected to be in the range of $160 million to $170 million

Earnings Conference Call

BEVERLY, Mass., July 26, 2023 (GLOBE NEWSWIRE) -- ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported financial results for the three and six months ended June 30, 2023.

Remarks by Michael Prior, ATN CEO

“The growth in revenues and our customer base contributed to margin improvement and Adjusted EBITDA expansion, tracking to our three-year plan. Over the past year, we have increased the number of homes passed by fiber and other high-speed networks by 66%. This has led to 22% growth in our high-speed data subscribers as we have upgraded legacy broadband users and brought on new subscribers. This early success improves the durability of our revenue further validating our Glass & SteelTM and First-to-Fiber strategies. Also, we were pleased with the 14% growth in international mobile subscribers.

“As expected, we closed a major, long-term contract with a national mobile carrier during the quarter to provide network, infrastructure, and technical services. This long-term contract leverages our operating capabilities and a mobile network covering more than 50,000 square miles of the western United States.

“Our long-term track record of strong operational and financial performance provided the foundation to refinance our main credit facility on attractive terms despite the current market environment. The new facilities have five- and six-year maturities, adding to our financial strength and flexibility. As we enter the latter stages of our three-year fiber-driven expansion, our focus is shifting toward increasing free cash flow and reducing our leverage ratio, as we anticipate network spending to moderate while growing our subscriber base and recurring revenue on this expanded and upgraded network footprint.”

Second Quarter 2023 Financial Results

Consolidated revenues were $186.4 million, up 4% versus $179.5 million in the year-ago quarter. This increase primarily reflects higher mobility and fixed revenues, including those from a recent acquisition, partially offset by lower legacy roaming and construction revenues.

Operating income rose to $2.4 million, from $1.7 million in the year-ago quarter. The year-over-year increase was primarily due to higher revenues, partially offset by an increase in operating and depreciation expenses from a recent acquisition.

Net income attributable to ATN stockholders increased to $0.8 million, and a net loss of $(0.03) per share, compared with a net loss attributable to ATN stockholders of $(0.5) million, or $(0.11) loss per share, in the year-ago quarter. The improvement in net income was due primarily to an increase in operating income, an income tax benefit and income from non-controlling investments, partially offset by a $6.1 million increase in interest expense. In both periods, the loss per share calculation includes the impact of preferred dividends that are not included in the net income (loss) calculation.

Adjusted EBITDA1 increased to $45.8 million, from $41.7 million in the year-ago quarter.

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 June 30, 2023 and 2022
         
  2023  2022  2023  2022  2023  2022  2023  2022 
 InternationalInternationalUSUSCorporate andCorporate andTotalTotal
 TelecomTelecomTelecomTelecomOther*Other*ATNATN
Total Revenue:$ 91,981 $ 88,406 $ 94,460 $ 91,091 $ - $ - $ 186,441 $ 179,497 
Mobility 26,856  24,954  977  1,850  -  -  27,833  26,804 
Fixed 59,673  58,349  58,103  51,032  -  -  117,776  109,381 
Carrier Services 3,879  3,421  31,576  31,753  -  -  35,455  35,174 
Construction -  -  1,020  3,297  -  -  1,020  3,297 
All other 1,573  1,682  2,784  3,159  -  -  4,357  4,841 
         
Operating Income (Loss)$14,552 $11,645 $(2,394)$(281)$(9,720)$(9,642)$2,438 $1,722 
EBITDA2$29,022 $27,113 $21,816 $20,338 $(9,039)$(8,662)$41,799 $38,789 
Adjusted EBITDA1$29,128 $27,169 $22,776 $20,729 $(6,113)$(6,157)$45,791 $41,741 
Capital Expenditures**$17,408 $18,699 $21,450 $18,063 $(5)$222 $38,853 $36,984 
         
         
For Six Months Ended June 30, 2023 and 2022
         
  2023  2022  2023  2022  2023  2022  2023  2022 
 InternationalInternationalUSUSCorporate andCorporate andTotalTotal
 TelecomTelecomTelecomTelecomOther*Other*ATNATN
Total Revenue:$ 182,389 $ 175,191 $ 189,825 $ 176,326 $ - $ - $ 372,214 $ 351,517 
Mobility 52,963  48,540  2,136  3,680  -  -  55,099  52,220 
Fixed 118,563  116,696  117,004  97,147  -  -  235,567  213,843 
Carrier Services 7,570  6,823  63,660  64,742  -  -  71,230  71,565 
Construction -  -  1,610  5,283  -  -  1,610  5,283 
All other 3,293  3,132  5,415  5,474  -  -  8,708  8,606 
         
Operating Income (Loss)$28,377 $23,450 $(6,737)$(4,914)$(18,566)$(16,703)$3,074 $1,833 
EBITDA2$57,413 $53,233 $41,826 $36,987 $(17,154)$(14,770)$82,085 $75,450 
Adjusted EBITDA1$57,586 $54,380 $45,583 $40,398 $(12,581)$(10,942)$90,588 $83,836 
Capital Expenditures**$38,906 $33,870 $50,584 $36,910 $(40)$424 $89,450 $71,204 

* 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 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.

Operating Metrics

Operating Metrics
       
 20232023202220222022Q2 2023
 Q2Q1Q4Q3Q2 vs. Q2 2022
Broadband Homes Passed 746,800 736,300 728,900 613,600 614,200 22%
Broadband Homes Passed by HSD*331,000 301,600 275,100 219,300 199,800 66%
       
Broadband Customers217,100 216,900 210,300 205,200 204,500 6%
HSD* Broadband Customers129,000 122,600 113,000 110,700 105,600 22%
       
Fiber Route Miles11,561 11,099 10,545 9,756 9,399 23%
       
International Mobile Subscribers      
Pre-Paid340,200 328,800 322,000 301,800 297,000 15%
Post-Paid58,900 56,900 55,700 54,200 51,900 13%
Total399,100 385,700 377,700 356,000 348,900 14%
       
Blended Churn2.69%2.81%2.25%3.02%2.80% 

*HSD is defined as download speeds 100 Mbps or greater and HSD Broadband Customers as 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 June 30, 2023, was $67.2 million and total debt was $482.1 million, versus $72.2 million of cash, cash equivalents and restricted cash and $356.1 million of total debt at the end of the year-ago quarter.

Net cash provided by operating activities was $60.3 million for the six months ended June 30, 2023, compared with net cash provided by operating activities of $50.7 million in the prior year period.   

Capital expenditures were $89.5 million net of $7.0 million of reimbursable capital expenditures for the six months ended June 30, 2023, versus $71.2 million, net of $3.9 million of reimbursable capital expenditures a year ago.

Quarterly Dividends and Stock Repurchases

Quarterly dividends ATN paid a quarterly dividend of $0.21 per share on July 7, 2023, on all common shares outstanding to stockholders of record as of June 30, 2023.

Stock repurchases of the Company’s common stock totaled $6.8 million in the first six months of 2023.

Guidance and Outlook

The Company is continuing investments in its “Glass & 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 ending December 31, 2023:

Adjusted EBITDA1$183 million to $193 millionFull year 2023
Capital Expenditures$160 million to $170 millionFull year 2023


Reiterates outlook for the three-year period ending December 31, 2024:

Revenue CAGR4-6%2021-2024
Adjusted EBITDA1 CAGR8-10%2021-2024
Capital ExpendituresReturn to 10-15% of RevenueAfter 2024
Net Debt RatioApprox. 2.0xExiting 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, CAGR, 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, July 27, 2023
Call Time: 10:00 a.m. ET
Webcast Link: https://edge.media-server.com/mmc/p/hweveeqj
Live Call Participant Link: https://register.vevent.com/register/BI91d57dad09fe477f9509fd230131cc7b

Webcast Link InstructionsA 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.

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, restructuring expenses, 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 excluded 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.

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; 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 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) ongoing risk of an economic downturn, political, geopolitical and other risks and opportunities facing the Company’s operations, including those resulting from the continued 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. BenincasaIan Rhoades
Chief Financial OfficerInvestor Relations
ATN International, Inc.Sharon Merrill Advisors, Inc.
978-619-1300ATNI@investorrelations.com


    
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
    
  June 30,   December 31, 
  2023   2022 
Assets:       
Cash and cash equivalents$64,005  $54,660 
Restricted cash 3,217   5,068 
Customer receivable 6,625   5,803 
Other current assets 174,249   164,157 
    
Total current assets 248,096   229,688 
    
Property, plant and equipment, net 1,063,464   1,055,954 
Operating lease right-of-use assets 105,090   108,702 
Customer receivable - long term 44,698   46,706 
Goodwill and other intangible assets, net 179,489   185,794 
Other assets 89,132   81,025 
    
Total assets$1,729,969  $1,707,869 
    
Liabilities, redeemable non-controlling interests and stockholders’ equity:   
Current portion of long-term debt$18,070  $6,172 
Current portion of customer receivable credit facility 6,710   6,073 
Taxes payable 11,107   7,335 
Current portion of lease liabilities 16,472   15,457 
Other current liabilities 188,483   198,143 
    
Total current liabilities 240,842   233,180 
    
Long-term debt, net of current portion$464,069  $415,727 
Customer receivable credit facility, net of current portion 39,749   39,275 
Deferred income taxes 22,034   28,650 
Lease liabilities 80,893   83,319 
Other long-term liabilities 132,922   138,420 
    
Total liabilities 980,509   938,571 
    
Redeemable non-controlling interests 94,484   92,468 
    
Stockholders' equity   
Total ATN International, Inc.’s stockholders’ equity 557,253   580,814 
Non-controlling interests 97,723   96,016 
    
Total stockholders' equity 654,976   676,830 
    
Total liabilities, redeemable non-controlling interests and stockholders’ equity$1,729,969  $1,707,869 


        
       Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
        
 Three Months Ended, Six Months Ended,
 June 30, June 30,
Revenues:2023 2022 2023 2022
Communications services$181,576  $171,795  $362,883  $338,338 
Construction 1,020   3,297   1,610   5,283 
Other 3,845   4,405   7,721   7,896 
Total revenue 186,441   179,497   372,214   351,517 
        
Operating expenses (excluding depreciation and amortization unless otherwise indicated):       
Cost of services and other 77,718   77,860   156,759   150,871 
Cost of construction revenue 1,016   3,286   1,604   5,319 
Selling, general and administrative 61,914   56,610   123,262   111,491 
Stock-based compensation 2,739   2,568   4,517   4,028 
Transaction-related charges 438   412   451   966 
Restructuring expenses 370   -   3,257   - 
Depreciation 36,217   33,817   72,621   67,109 
Amortization of intangibles from acquisitions 3,144   3,250   6,391   6,508 
(Gain) Loss on disposition of assets 445   (28)  278   3,392 
Total operating expenses 184,001   177,775   369,140   349,684 
        
Operating income 2,440   1,722   3,074   1,833 
        
Other income (expense):       
Interest expense, net (10,404)  (4,278)  (19,029)  (7,590)
Other income (expense) 2,216   (2,724)  2,411   1,474 
Other income (expenses), net (8,188)  (7,002)  (16,618)  (6,116)
        
Loss before income taxes (5,748)  (5,280)  (13,544)  (4,283)
Income tax benefit (5,087)  (3,971)  (5,827)  (1,018)
        
Net loss (661)  (1,309)  (7,717)  (3,265)
        
Net loss attributable to non-controlling interests, net 1,428   784   2,599   1,794 
        
Net income (loss) attributable to ATN International, Inc. stockholders$767  $(525) $(5,118) $(1,471)
        
Net loss per weighted average share attributable to ATN International, Inc. stockholders:       
        
Basic Net Loss$(0.03) $(0.11) $(0.48) $(0.24)
        
Diluted Net Loss$(0.03) $(0.11) $(0.48) $(0.24)
        
Weighted average common shares outstanding:       
Basic 15,719   15,749   15,726   15,736 
Diluted 15,719   15,749   15,726   15,736 


 
Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statements
(in Thousands)
  
  Six Months Ended June 30,
  2023   2022 
    
Net Loss$(7,717) $(3,265)
Depreciation 72,621   67,109 
Amortization of intangibles from acquisitions 6,391   6,508 
Provision for doubtful accounts 2,463   3,153 
Amortization of debt discount and debt issuance costs 1,162   1,004 
Loss on disposition of long-lived assets 278   3,392 
Stock-based compensation 4,517   4,028 
Deferred income taxes (6,616)  (3,871)
Loss on pension settlement 369   1,725 
Gain on equity investments (2,501)  (3,401)
Increase in customer receivable 1,186   (2,298)
Change in prepaid and accrued income taxes 3,302   9,433 
Change in other operating assets and liabilities (15,126)  (32,797)
    
Net cash provided by operating activities 60,329   50,720 
    
Capital expenditures (89,451)  (71,204)
Government capital programs:   
Amounts disbursed (6,986)  (3,894)
Amounts received 593   - 
Purchases of strategic investments (1,055)  (1,400)
Purchases and sales of businesses 1,314   1,835 
    
Net cash used in investing activities (95,585)  (74,663)
    
Dividends paid on common stock (6,633)  (5,348)
Distributions to non-controlling interests (1,447)  (1,375)
Finance leases (481)  (574)
Term loan - repayments (2,335)  (938)
Payment of debt issuance costs (159)  - 
Revolving credit facilities – borrowings 88,273   49,000 
Revolving credit facilities – repayments (26,500)  (24,500)
Proceeds from customer receivable credit facility 4,300   8,000 
Repayment of customer receivable credit facility (3,247)  (2,258)
Purchases of common stock - stock-based compensation (1,433)  (1,169)
Purchases of common stock - share repurchase plan (6,828)  (941)
Repurchases of non-controlling interests, net (760)  (4,491)
    
Net cash provided by financing activities 42,750   15,406 
    
Net change in total cash, cash equivalents and restricted cash 7,494   (8,537)
    
Total cash, cash equivalents and restricted cash, beginning of period 59,728   80,697 
    
Total cash, cash equivalents and restricted cash, end of period$67,222  $72,160 


 
Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
     
For the three months ended June 30, 2023 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
     
Statement of Operations Data:    
Revenue    
Mobility    
Business$3,507 $114 $- $3,621 
Consumer 23,349  863  -  24,212 
Total$26,856 $977 $- $27,833 
     
Fixed    
Business$17,214 $35,495 $- $52,709 
Consumer 42,459  22,608  -  65,067 
Total$59,673 $58,103 $- $117,776 
     
Carrier Services$3,879 $31,576 $- $35,455 
Other 448  64  -  512 
     
Total Communications Services$90,856 $90,720 $- $181,576 
     
Construction$- $1,020 $- $1,020 
     
Managed services$1,125 $2,720 $- $3,845 
Total Other $1,125 $2,720 $- $3,845 
     
Total Revenue$91,981 $94,460 $- $186,441 
     
Depreciation$14,106 $21,430 $681 $36,217 
Amortization of intangibles from acquisitions$364 $2,780 $- $3,144 
Total operating expenses$77,429 $96,854 $9,720 $184,003 
Operating income (loss)$14,552 $(2,394)$(9,720)$2,438 
Non-controlling interest ( net income or (loss) )$(2,050)$3,478 $- $1,428 
     
Non GAAP measures:    
EBITDA (2)$29,022 $21,816 $(9,039)$41,799 
Adjusted EBITDA (1)$29,128 $22,776 $(6,113)$45,791 
     
Balance Sheet Data (at June 30, 2023):    
Cash, cash equivalents and restricted cash$33,331 $25,433 $8,458 $67,222 
Total current assets 116,153  121,908  10,035  248,096 
Fixed assets, net 472,547  584,834  6,083  1,063,464 
Total assets 668,185  975,996  85,788  1,729,969 
Total current liabilities 88,950  123,616  28,276  240,842 
Total debt, including current portion 63,478  280,661  138,000  482,139 
     
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
 
Table 4 (continued)
     
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
     
For the three months ended June 30, 2022 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
Statement of Operations Data:    
Revenue    
Mobility    
Business$3,675 $301 $- $3,976 
Consumer 21,279  1,549  -  22,828 
Total$24,954 $1,850 $- $26,804 
     
Fixed    
Business$16,996 $31,866 $- $48,862 
Consumer 41,353  19,166  -  60,519 
Total$58,349 $51,032 $- $109,381 
     
Carrier Services$3,421 $31,753 $- $35,174 
Other 436  -  -  436 
     
Total Communications Services$87,160 $84,635 $- $171,795 
     
Construction$- $3,297 $- $3,297 
     
Managed services$1,246 $3,159 $- $4,405 
     
Total Other $1,246 $3,159 $- $4,405 
     
Total Revenue$88,406 $91,091 $- $179,497 
     
Depreciation$15,074 $17,763 $980 $33,817 
Amortization of intangibles from acquisitions$394 $2,856 $- $3,250 
Total operating expenses$76,761 $91,372 $9,642 $177,775 
Operating income (loss)$11,645 $(281)$(9,642)$1,722 
Non-controlling interest ( net income or (loss) )$(921)$1,705 $- $784 
     
Non GAAP measures:    
EBITDA (2)$27,113 $20,338 $(8,662)$38,789 
Adjusted EBITDA (1)$27,169 $20,729 $(6,157)$41,741 
     
     
(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
     
     
Table 4 (continued)
     
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
     
For the six months ended June 30, 2023 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
     
Statement of Operations Data:    
Revenue    
Mobility    
Business$7,083 $286 $- $7,369 
Consumer 45,880  1,850  -  47,730 
Total$52,963 $2,136 $- $55,099 
     
Fixed    
Business$34,327 $71,814 $- $106,141 
Consumer 84,236  45,190  -  129,426 
Total$118,563 $117,004 $- $235,567 
     
Carrier Services$7,570 $63,660 $- $71,230 
Other 848  139  -  987 
     
Total Communications Services$179,944 $182,939 $- $362,883 
     
Construction$- $1,610 $- $1,610 
     
Managed services$2,445 $5,276 $- $7,721 
Total Other $2,445 $5,276 $- $7,721 
     
Total Revenue$182,389 $189,825 $- $372,214 
     
Depreciation$28,292 $42,917 $1,412 $72,621 
Amortization of intangibles from acquisitions$744 $5,646 $- $6,390 
Total operating expenses$154,012 $196,562 $18,566 $369,140 
Operating income (loss)$28,377 $(6,737)$(18,566)$3,074 
Non-controlling interest ( net income or (loss) )$(3,856)$6,455 $- $2,599 
     
Non GAAP measures:    
EBITDA (2)$57,413 $41,826 $(17,154)$82,085 
Adjusted EBITDA (1)$57,586 $45,583 $(12,581)$90,588 
     
     
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments 
 
Table 4 (continued)
     
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
     
For the six months ended June 30, 2022 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
     
Statement of Operations Data:    
Revenue    
Mobility    
Business$7,291 $674 $- $7,965 
Consumer 41,249  3,006  -  44,255 
Total$48,540 $3,680 $- $52,220 
     
Fixed    
Business$34,250 $59,011 $- $93,261 
Consumer 82,446  38,136  -  120,582 
Total$116,696 $97,147 $- $213,843 
     
Carrier Services$6,823 $64,742 $- $71,565 
Other 710  -  -  710 
     
Total Communications Services$172,769 $165,569 $- $338,338 
     
Construction$- $5,283 $- $5,283 
     
Managed services$2,422 $5,474 $- $7,896 
     
Total Other $2,422 $5,474 $- $7,896 
     
Total Revenue$175,191 $176,326 $- $351,517 
     
Depreciation$28,971 $36,205 $1,933 $67,109 
Amortization of intangibles from acquisitions$812 $5,696 $- $6,508 
Total operating expenses$151,741 $181,240 $16,703 $349,684 
Operating income (loss)$23,450 $(4,914)$(16,703)$1,833 
Non-controlling interest ( net income or (loss) )$(2,440)$4,234 $- $1,794 
     
Non GAAP measures:    
EBITDA (2)$53,233 $36,987 $(14,770)$75,450 
Adjusted EBITDA (1)$54,380 $40,398 $(10,942)$83,836 
     
     
     
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
     


     
Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
     
For the three months ended June 30, 2023 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
     
     
Operating income (loss)$14,552 $(2,394)$(9,720)$2,438 
Depreciation expense 14,106  21,430  681  36,217 
Amortization of intangibles from acquisitions 364  2,780  -  3,144 
EBITDA$ 29,022 $ 21,816 $ (9,039)$ 41,799 
     
Stock-based compensation 109  9  2,621  2,739 
Restructuring expenses -  370  -  370 
Transaction-related charges -  133  305  438 
(Gain) Loss on disposition of assets (3) 448  -  445 
ADJUSTED EBITDA$ 29,128 $ 22,776 $ (6,113)$ 45,791 
     
     
For the three months ended June 30, 2022 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
     
     
Operating income (loss)$11,645 $(281)$(9,642)$1,722 
Depreciation expense 15,074  17,763  980  33,817 
Amortization of intangibles from acquisitions 394  2,856  -  3,250 
EBITDA$ 27,113 $ 20,338 $ (8,662)$ 38,789 
     
Stock-based compensation 56  79  2,433  2,568 
Transaction-related charges -  340  72  412 
(Gain) Loss on disposition of assets -  (28) -  (28)
ADJUSTED EBITDA$ 27,169 $ 20,729 $ (6,157)$ 41,741 
     
Table 5 (continued)
     
For the six months ended June 30, 2023 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
     
     
Operating income (loss)$28,377 $(6,737)$(18,566)$3,074 
Depreciation expense 28,292  42,917  1,412  72,621 
Amortization of intangibles from acquisitions 744  5,646  -  6,390 
EBITDA$ 57,413 $ 41,826 $ (17,154)$ 82,085 
     
Stock-based compensation 176  86  4,255  4,517 
Restructuring expenses -  3,257  -  3,257 
Transaction-related charges -  133  318  451 
(Gain) Loss on disposition of assets (3) 281  -  278 
ADJUSTED EBITDA$ 57,586 $ 45,583 $ (12,581)$ 90,588 
     
     
For the six months ended June 30, 2022 is as follows:
     
 International Telecom US Telecom Corporate and Other *Total
     
     
Operating income (loss)$23,450 $(4,914)$(16,703) 1,833 
Depreciation expense 28,971  36,205  1,933  67,109 
Amortization of intangibles from acquisitions 812  5,696  -  6,508 
EBITDA$ 53,233 $ 36,987 $ (14,770)$ 75,450 
     
Stock-based compensation 116  169  3,743  4,028 
Transaction-related charges -  881  85  966 
(Gain) Loss on disposition of assets 1,031  2,361  -  3,392 
ADJUSTED EBITDA$ 54,380 $ 40,398 $ (10,942)$ 83,836 


    
Table 6
    
ATN International, Inc.
Non GAAP Measure - Net Debt Ratio
(in Thousands)
    
    
 June 30, December 31,
  2023  2022 
    
    
Current portion of long-term debt *$18,070  $6,172 
Long-term debt, net of current portion * 464,069   415,727 
    
Total debt$482,139  $421,899 
    
Less: Cash, cash equivalents and restricted cash 67,222   59,728 
    
Net Debt$414,917  $362,171 
    
    
Adjusted EBITDA - for the four quarters ended$179,444  $172,688 
    
    
Net Debt Ratio 2.31   2.10 
    
    
* Excludes Customer receivable credit facility   
    

 


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 Adjusted EBITDA Guidance, 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.


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