ATN International Inc (ATNI) Reports Mixed 2023 Results and Provides 2024 Outlook
Revenue: Increased to $762.2 million in 2023, up 5% from $725.7 million in 2022.
Operating Income: Grew to $13.2 million in 2023 from $7.9 million in the previous year.
Net Loss: Expanded to $(14.5) million in 2023, or $(1.25) per share, compared to a net loss of $(5.6) million, or $(0.67) per share in 2022.
Adjusted EBITDA: Increased to $189.5 million in 2023, up from $172.7 million in 2022.
Capital Expenditures: Totaled $163.3 million net of reimbursable expenditures for 2023, compared to $160.1 million in the prior year.
Dividends and Share Repurchases: Quarterly dividend increased by over 14% to $0.24 per share; $15.0 million spent on share repurchases in 2023.
2024 Outlook: Revenue projected between $750 million to $770 million; Adjusted EBITDA expected to be $200 million to $208 million.
On February 21, 2024, ATN International Inc (NASDAQ:ATNI) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023 and providing an outlook for 2024. As a telecommunications and utilities company, ATNI has been focusing on critical infrastructure-based communications and related information technology solutions, with operating segments in US Telecom, International Telecom, and Renewable Energy.
Performance and Challenges
ATNI's "First-to-Fiber" and "Glass & Steel" strategies have driven year-over-year growth, with a 4% increase in consolidated revenues for the fourth quarter and a 5% increase for the full year. However, the company faced challenges, including a net loss attributable to stockholders of $(5.8) million in the fourth quarter and $(14.5) million for the full year, largely due to restructuring expenses and increased interest expense. Despite these setbacks, the company's Adjusted EBITDA improved, signaling strong underlying operational performance.
Financial Achievements
The growth in operating income from $7.9 million to $13.2 million reflects the company's ability to improve profitability in a competitive telecommunications industry. ATNI's investments in expanding its high-speed network have laid a foundation for sustainable value creation, as evidenced by the increase in high-speed capable broadband subscribers and homes passed by high-speed data services.
Key Financial Metrics
ATNI's balance sheet shows a total cash position of $65.2 million and total debt of $516.9 million as of December 31, 2023. The company's net cash provided by operating activities was $113.0 million for the year, an improvement from the previous year. Capital expenditures were significant, reflecting ongoing investments in network expansion and technology upgrades.
"We believe that the investments we have made, which have expanded the reach and capabilities of our high-speed network, provide a solid foundation for sustainable value-creation in the years ahead," said Brad Martin, ATNI Chief Executive Officer.
2024 Outlook and Strategic Focus
Looking ahead to 2024, ATNI anticipates continued growth in its customer base and operating margins, with a focus on increasing EBITDA and improving cash flow generation. The company plans to reduce internally funded capital expenditures and leverage available grant funding to augment network expansion. The guidance for 2024 projects revenue between $750 million to $770 million and Adjusted EBITDA between $200 million to $208 million, with capital expenditures expected to be between $110 million to $120 million.
Value investors and potential GuruFocus.com members may find ATNI's strategic investments and focus on margin improvement initiatives promising, despite the short-term challenges reflected in the net losses. The company's commitment to expanding its high-speed network and improving operational efficiency could position it well for future growth and profitability.
For a more detailed analysis of ATN International Inc's financial results and outlook, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from ATN International Inc for further details.
This article first appeared on GuruFocus.
