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ATN Reports Second Quarter 2020 Results

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·24 min read
In this article:
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  • Generated Double-Digit Operating Income and EBITDA Growth on Stable Revenues

  • International and US Telecom Services Demonstrated Resilience to COVID-19 Pandemic Disruptions

  • Strong Balance Sheet Provides Significant Strength and Financial Flexibility

BEVERLY, Mass., July 29, 2020 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the second quarter ended June 30, 2020.

Business Review and Outlook

“Our second quarter results benefited from past investments and initiatives, which have led to steady operating income and EBITDA performance across our International Telecom and US Telecom segments. Strong year-on-year operating income and EBITDA comparisons in International Telecom reflect increased usage of our broadband services, which we believe are the best in our markets. This demand for our fixed services helped offset the impact of lower mobile revenue and handset sales due to pandemic-related travel and stay-at-home restrictions,” said Michael Prior, ATN’s Chief Executive Officer.

“In US Telecom, similar to first quarter segment results, we continued to execute on the carrier and CAFII federal revenue support contracts, which will provide relatively consistent revenues for the year. These contracts include our revenue support around the build-out of broadband services in under-served rural areas of the country as part of the federally funded CAFll program, and increased carrier service revenue as part of the FirstNet transaction. We continue to work through pandemic-related construction delays in our FirstNet network buildout and now expect to complete some FirstNet sites in late 2020.

“We were pleased with our telecom operations’ performance and the role we have been able to play in providing essential connectivity and communications during this crisis, thanks to the commitment and dedication of our employees. Both our domestic and international operations showed resilience in a dynamic and uncertain environment. Looking ahead, we are concerned about the economic impact that long delays in the return of tourism and travel could have on international markets and will adjust our course as needed. At the same time, we believe that the pandemic will lead to changes in global business and social behaviors and accelerate a shift to heavy telecom and data reliant activity. This could provide attractive growth opportunities for ATN’s established and emerging businesses. We believe that our conservative approach to balance sheet management should provide the resources to manage through any potential downturns and continue to allow us to make investments that position our telecom services platforms for longer term growth,” Mr. Prior concluded.

Second Quarter Results

Second quarter 2020 consolidated revenues of $109.1 million were up 1% compared to the prior year quarter’s revenue of $107.7 million. Operating income for the quarter was $7.0 million, up $4.2 million compared with the prior year quarter’s $2.8 million. EBITDA1 was $29.0 million in the second quarter, up by 19% compared to $24.3 million in the prior year period. Net income attributable to ATN’s stockholders for the second quarter was $4.7 million, or $0.30 per diluted share, compared with the prior year period’s net loss of $0.9 million, or $0.05 loss per share.

Second Quarter 2020 Operating Highlights

The Company has three reportable segments: (i) International Telecom; (ii) US Telecom; and (iii) Renewable Energy.

Segment Results (in Thousands)

Three Months Ended June 30, 2020

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other

Total

Revenue

$

80,064

$

28,160

$

874

$

-

$

109,098

Operating Income (loss)

$

14,617

$

1,826

$

(620

)

$

(8,799

)

$

7,024

EBITDA1

$

28,749

$

7,543

$

(134

)

$

(7,143

)

$

29,015

Six Months Ended June 30, 2020

Capital Expenditures

$

19,929

$

8,883

$

1,634

$

1,519

$

31,965


Segment Results (in Thousands)

Three Months Ended June 30, 2019

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other

Total

Revenue

$

79,859

$

26,414

$

1,448

$

-

$

107,721

Operating Income

$

11,057

$

1,521

$

167

$

(9,991

)

$

2,754

EBITDA1

$

24,663

$

7,072

$

805

$

(8,237

)

$

24,303

Six Months Ended June 30, 2019

Capital Expenditures

$

23,692

$

6,368

$

817

$

4,519

$

35,396


Beginning in the first quarter of 2020 the Company restructured its presentation of revenue in the Condensed Consolidated Statement of Operations and in the Selected Segment Financial Information tables. This change is intended to better align our reporting of financial performance with views of the Company management, industry competitors, and to facilitate discussions with investors and analysts.

International Telecom

International Telecom consists of a broad range of communications services including fixed and mobile data, voice and video service revenues from our operations in Bermuda and the Caribbean. International Telecom revenues were $80.1 million for the quarter, a slight increase year-on-year mainly due to increases in fixed broadband revenues and increases in managed services revenues partially offset by lower mobile revenues. Compared to the prior year quarter, operating income increased 32% to $14.6 million and EBITDA1 increased 17% to $28.7 million, respectively, primarily from lower operating costs in the quarter of which approximately $1.0 million was related to one-time expense reductions in the quarter.

US Telecom

US Telecom revenues consist mainly of carrier services revenues and fixed and mobile communications services from our retail operations in the Southwestern United States, as well as communications services provided to enterprise customers. US Telecom segment revenues were $28.2 million in the quarter, an increase of 7% over the prior year period primarily due to a full quarter of federal support CAF II revenues in the current year quarter and increased FirstNet carrier services revenue. The network build portion of the FirstNet agreement has continued during the pandemic, but the overall timing of the build schedule has been delayed. Subject to ongoing delays caused by the pandemic-related restrictions, we currently expect construction revenues to begin in late 2020 and continue through 2021. As revenues from the build will be largely offset by construction costs, we do not expect a material impact on operating income or EBITDA1 from this delay. Operating income increased by $0.3 million from the prior year’s quarter to $1.8 million and EBITDA1 for this segment increased by $0.4 million to $7.5 million. The year-over-year profitability improvements were mainly driven by the revenue increases which were partially offset by additional operating costs related to our early stage business operations.

Renewable Energy

Renewable Energy segment revenues are principally the result of the generation and sale of energy from our commercial solar projects in India. We ended the second quarter of 2020 with 52 Megawatts (MWs) of revenue generating solar facilities and expect to begin generating revenue from additional MWs later in the year. The current quarter’s operating loss was $0.6 million and EBITDA1 was a loss of $0.1 million, both below the prior year’s quarter due to pandemic-related restrictions which resulted in the temporary suspension of some of our customers’ operations. Those restrictions lifted late in the quarter, and our customers’ operations and revenue generation resumed. Absent additional government-mandated closures, we expect most of our customers to be fully operational again in the third quarter.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at June 30, 2020 was $125.9 million. Net cash provided by operating activities was $40.4 million for the six months ended June 30, 2020, compared with $18.5 million for the prior year period. The increase in operating cash flow compared with the prior year is mostly the result of increased net income and lower tax payments over last year. For the six months ended June 30, 2020, the Company used net cash of $76.7 million for investing and financing activities compared to $64.8 million for the prior year period. In the current year, this included $32.0 million in capital expenditures, $20.0 million in purchases of intangible assets, $7.9 million of dividends on common stock and share repurchases, and $5.5 million in minority partner distributions. Management expects full year 2020 capital expenditures to be lower than originally forecasted at the beginning of the year as a result of the pandemic. We expect full year 2020 capital expenditures in International Telecom to be approximately $35.0 - $40.0 million. In the US Telecom segment, we expect capital expenditures to be approximately $25.0 - $30.0 million, including $10.0 million on towers and backhaul to support the FirstNet contract.

Conference Call Information

ATN will host a conference call on Thursday, July 30, 2020 at 11:30 a.m. Eastern Time (ET) to discuss its second quarter results and business outlook. The call will be hosted by Michael Prior, Chairman and Chief Executive Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are US/Canada: (877) 734-4582 and International: (678) 905-9376, conference ID 4642926. A replay of the call will be available at ir.atni.com beginning at approximately 2:30 p.m. (ET) on July 30, 2020.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, invests in and operates communications, energy and technology businesses in the United States and internationally, including the Caribbean region and Asia-Pacific, with a particular focus on markets with a need for significant infrastructure investments and improvements. Our operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, high speed internet services, video services and local exchange services, (ii) distributed solar electric power to corporate and government customers and (iii) wholesale communications infrastructure services such as terrestrial and submarine fiber optic transport, communications tower facilities, managed mobile networks, and in-building systems. 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, our future financial performance and results of operations, including the impact of the novel coronavirus pandemic on the economies of the markets we serve, our business and operations; expectations regarding revenue, operating income, EBITDA expectations and capital expenditures for 2020; the competitive environment in our key markets, demand for our services and industry trends; the impact of the CAF II federal support revenues and the FirstNet transaction; the impact of digital enhancements; our liquidity; and management’s plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results. Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1) the general performance of our operations, including operating margins, revenues, capital expenditures, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power; (2) our ability to maintain favorable roaming arrangements, receive roaming traffic and satisfy the needs and demands of our major wireless customers; (3) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address rapid and significant technological changes in the telecommunications industry; (4) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables businesses; (5) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (6) economic, political and other risks and opportunities facing our operations, including those resulting from the pandemic; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to expand and obtain funding for our renewable energy business; (9) our ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (10) the occurrence of weather events and natural catastrophes; (11) increased competition; (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) our continued access to capital and credit markets; and (14) the risk of currency fluctuation for those markets in which we operate. 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, 2019, filed with the SEC on March 2, 2020 and the other reports we file 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, ATN has included EBITDA in this release and in the tables included herein.

EBITDA is defined as operating income (loss) before depreciation and amortization expense. The Company believes that the inclusion of this non-GAAP financial measure helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. ATN’s management uses this non-GAAP measure, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measure included in this press release is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of this non-GAAP financial measure used in this press release to the most directly comparable GAAP financial measure are set forth in the text of, and the accompanying tables to, this press release. While our non-GAAP financial measure is an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of this financial measure to the comparable GAAP financial measure included below, and not to rely on any single financial measure to evaluate our business.


Table 1

ATN International, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in Thousands)

June 30,

December 31,

2020

2019

Assets:

Cash and cash equivalents

$

124,798

$

161,287

Restricted cash

1,072

1,071

Short-term investments

285

416

Other current assets

118,035

65,949

Total current assets

244,190

228,723

Property, plant and equipment, net

587,857

605,581

Operating lease right-of-use assets

63,933

68,763

Goodwill and other intangible assets, net

160,996

161,818

Other assets

54,629

65,841

Total assets

$

1,111,605

$

1,130,726

Liabilities and Stockholders’ Equity:

Current portion of long-term debt

$

3,750

$

3,750

Taxes payable

9,039

8,517

Current portion of operating lease liabilities

11,313

11,406

Other current liabilities

94,330

95,996

Total current liabilities

118,432

119,669

Long-term debt, net of current portion

$

80,874

$

82,676

Deferred income taxes

5,476

8,680

Operating lease liabilities

52,420

56,164

Other long-term liabilities

56,760

57,454

Total liabilities

313,962

324,643

Total ATN International, Inc.’s stockholders’ equity

668,730

676,122

Non-controlling interests

128,913

129,961

Total equity

797,643

806,083

Total liabilities and stockholders’ equity

$

1,111,605

$

1,130,726



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,

2020

2019

2020

2019

Revenues:

Communications services

$

106,240

$

105,019

$

214,145

$

205,633

Other

2,858

2,702

5,859

5,388

Total revenue

109,098

107,721

220,004

211,021

Operating expenses:

Termination and access fees

28,470

27,930

56,583

55,818

Engineering and operations

17,367

19,107

35,856

38,139

Sales, marketing and customer service

9,373

9,874

18,876

19,264

General and administrative

24,752

26,590

49,676

50,405

Transaction-related charges

72

28

116

68

Depreciation and amortization

21,991

21,549

44,509

42,267

(Gain) loss on disposition of assets

49

(111

)

64

191

Total operating expenses

102,074

104,967

205,680

206,152

Operating income

7,024

2,754

14,324

4,869

Other income (expense):

Interest expense, net

(1,508

)

(746

)

(2,421

)

(1,099

)

Other income (expense)

590

(255

)

(2,310

)

(68

)

Other income (expense), net

(918

)

(1,001

)

(4,731

)

(1,167

)

Income before income taxes

6,106

1,753

9,593

3,702

Income tax (benefit) expense

(2,258

)

(274

)

(1,149

)

939

Net Income

8,364

2,027

10,742

2,763

Net income attributable to non-controlling interests, net

(3,618

)

(2,883

)

(7,009

)

(5,198

)

Net income (loss) attributable to ATN International, Inc. stockholders

$

4,746

$

(856

)

$

3,733

$

(2,435

)

Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:

Basic Net Income (Loss)

$

0.30

$

(0.05

)

$

0.23

$

(0.15

)

Diluted Net Income (Loss)

$

0.30

$

(0.05

)

$

0.23

$

(0.15

)

Weighted average common shares outstanding:

Basic

15,970

15,997

15,958

15,986

Diluted

16,004

15,997

15,993

15,986

Note: The Company has restructured its presentation of revenues - see Table 4



Table 3

ATN International, Inc.

Unaudited Condensed Consolidated Cash Flow Statement

(in Thousands)

Six Months Ended June 30,

2020

2019

Net income

$

10,742

$

2,762

Depreciation and amortization

44,509

42,267

Provision for doubtful accounts

3,397

2,736

(Gain) Loss on disposition of assets

64

191

Stock-based compensation

2,721

3,334

Deferred income taxes

(3,204

)

(4,574

)

Loss on investments

1,412

-

Unrealized (gain) loss on foreign currency

780

(160

)

Change in prepaid and accrued income taxes

(1,439

)

(16,853

)

Change in other operating assets and liabilities

(18,867

)

(11,482

)

Other non-cash activity

260

301

Net cash provided by operating activities

40,375

18,522

Capital expenditures

(31,965

)

(35,396

)

Purchases of intangible assets, including deposits

(20,000

)

-

Purchases of strategic investments

(2,768

)

(10,000

)

Purchase of short-term investments

-

(5,028

)

Sale of short-term investments

-

141

Net cash used in investing activities

(54,733

)

(50,283

)

Dividends paid on common stock

(5,443

)

(5,439

)

Distributions to non-controlling interests

(5,541

)

(3,878

)

Principal repayments of term loan

(1,876

)

(1,887

)

Payment of debt issuance costs

(1,059

)

(1,340

)

Stock-based compensation share repurchases

(1,733

)

(1,578

)

Purchases of common stock - share buyback

(2,449

)

-

Repurchases of non-controlling interests

(3,911

)

(861

)

Investments made by minority shareholders

-

488

Net cash used in financing activities

(22,012

)

(14,495

)

Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash

(118

)

31

Net change in total cash, cash equivalents and restricted cash

(36,488

)

(46,225

)

Total cash, cash equivalents and restricted cash, beginning of period

162,358

192,907

Total cash, cash equivalents and restricted cash, end of period

$

125,870

$

146,682



Table 4

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

For the three months ended June 30, 2020 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

19,062

$

2,367

$

-

$

-

$

21,429

Fixed

56,567

4,937

-

-

61,504

Carrier services

1,897

20,856

-

-

22,753

Other

554

-

-

-

554

Total communications services

$

78,080

$

28,160

$

-

$

-

$

106,240

Renewable Energy

$

-

$

-

$

874

$

-

$

874

Managed Services

1,984

-

-

-

1,984

Total Other

$

1,984

$

-

$

874

$

-

$

2,858

Total Revenue

$

80,064

$

28,160

$

874

$

-

$

109,098

Operating Income (Loss)

$

14,617

$

1,826

$

(620

)

$

(8,799

)

$

7,024

Stock-based compensation

28

-

131

1,402

1,561

Non-controlling interest ( net income or (loss) )

$

(2,464

)

$

(1,061

)

$

(93

)

$

-

$

(3,618

)

Non GAAP measures:

EBITDA (1)

$

28,749

$

7,543

$

(134

)

$

(7,143

)

$

29,015

Adjusted EBITDA (2)

$

28,749

$

7,546

$

(18

)

$

(7,141

)

$

29,136

Balance Sheet Data (at June 30, 2020):

Cash, cash equivalents and investments

$

60,598

$

29,304

$

22,801

$

12,380

$

125,083

Total current assets

112,845

58,928

25,537

46,880

244,190

Fixed assets, net

456,633

66,189

44,852

20,183

587,857

Total assets

656,414

222,046

71,033

162,112

1,111,605

Total current liabilities

71,627

23,994

1,164

21,647

118,432

Total debt

84,624

-

-

-

84,624

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments

** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view

of investors and company management.

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

For the three months ended June 30, 2019 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

21,007

$

2,800

$

-

$

-

$

23,807

Fixed

54,954

3,622

-

-

58,576

Carrier services

2,306

19,992

-

-

22,298

Other

338

-

-

-

338

Total communications services

$

78,605

$

26,414

$

-

$

-

$

105,019

Renewable Energy

$

-

$

-

$

1,448

$

-

$

1,448

Managed Services

1,254

-

-

-

1,254

Total Other

$

1,254

$

-

$

1,448

$

-

$

2,702

Total Revenue

$

79,859

$

26,414

$

1,448

$

-

$

107,721

Operating Income (Loss)

$

11,057

$

1,521

$

167

$

(9,991

)

$

2,754

Stock-based compensation

11

-

-

2,017

2,028

Non-controlling interest ( net income or (loss) )

$

(2,260

)

$

(603

)

$

(20

)

$

-

$

(2,883

)

Non GAAP measures:

EBITDA (1)

$

24,663

$

7,072

$

805

$

(8,237

)

$

24,303

Adjusted EBITDA (2)

$

24,656

$

6,968

$

805

$

(8,209

)

$

24,220

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments

** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view

of investors and company management.

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

For the six months ended June 30, 2020 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

39,198

$

4,770

$

-

$

-

$

43,968

Fixed

115,056

9,762

-

-

124,818

Carrier services

3,541

40,927

-

-

44,468

Other

891

-

-

-

891

Total communications services

$

158,686

$

55,459

$

-

$

-

$

214,145

Renewable Energy

$

-

$

-

$

2,196

$

-

$

2,196

Managed Services

3,663

-

-

-

3,663

Total Other

$

3,663

$

-

$

2,196

$

-

$

5,859

Total Revenue

$

162,349

$

55,459

$

2,196

$

-

$

220,004

Operating Income (Loss)

$

28,005

$

4,019

$

(1,077

)

$

(16,623

)

$

14,324

Stock-based compensation

(9

)

-

131

2,599

2,721

Non-controlling interest ( net income or (loss) )

$

(5,009

)

$

(2,094

)

$

94

$

-

$

(7,009

)

Non GAAP measures:

EBITDA (1)

$

56,453

$

15,621

$

23

$

(13,264

)

$

58,833

Adjusted EBITDA (2)

$

56,466

$

15,626

$

153

$

(13,232

)

$

59,013

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments

** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view

of investors and company management.

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

For the six months ended June 30, 2019 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

41,402

$

5,494

$

-

$

-

$

46,896

Fixed

111,080

5,581

-

-

116,661

Carrier services

4,567

36,832

-

-

41,399

Other

677

-

-

-

677

Total communications services

$

157,726

$

47,907

$

-

$

-

$

205,633

Renewable Energy

$

-

$

-

$

2,938

$

-

$

2,938

Managed Services

2,450

-

-

-

2,450

Total Other

$

2,450

$

-

$

2,938

$

-

$

5,388

Total Revenue

$

160,176

$

47,907

$

2,938

$

-

$

211,021

Operating Income (Loss)

$

24,936

$

(2,006

)

$

(16

)

$

(18,045

)

$

4,869

Stock-based compensation

21

-

-

3,313

3,334

Non-controlling interest ( net income or (loss) )

$

(4,656

)

$

(522

)

$

(20

)

$

-

$

(5,198

)

Non GAAP measures:

EBITDA (1)

$

51,557

$

9,143

$

1,237

$

(14,801

)

$

47,136

Adjusted EBITDA (2)

$

51,543

$

9,209

$

1,376

$

(14,733

)

$

47,395

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments

** The Company restructured its presentation of revenue to better align financial reporting with industry competitors, and the view

of investors and company management.

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

at December 31, 2019

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Balance Sheet Data (at December 31, 2019):

Cash, cash equivalents and investments

$

43,125

$

38,240

$

25,054

$

55,284

$

161,703

Total current assets

91,497

54,207

27,534

55,484

228,723

Fixed assets, net

466,523

69,184

48,421

21,452

605,581

Total assets

647,228

222,356

76,723

184,419

1,130,726

Total current liabilities

77,644

24,905

2,745

14,374

119,669

Total debt

86,426

-

-

-

86,426

(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 Financial Information

(In Thousands)

at June 30, 2020

Quarter ended

June 30,

September 30,

December 31,

March 31,

June 30,

2019

2019

2019

2020

2020

International Telecom Operational Data:

Fixed - Voice

165,900

164,900

164,800

166,700

167,100

Fixed - Data Subscribers

122,300

124,700

127,500

130,900

135,100

Fixed - Video Subscribers

39,400

38,600

38,100

37,800

36,100

Mobile - Subscribers *

290,400

285,000

284,100

282,100

276,200

* Counts were adjusted for all periods presented based upon a change in methodology and process



Table 5

ATN International, Inc.

Reconciliation of Non-GAAP Measures

(In Thousands)

For the three months ended June 30, 2020 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Operating income (loss)

$

14,617

$

1,826

$

(620

)

$

(8,799

)

$

7,024

Depreciation and amortization expense

14,132

5,717

486

1,656

21,991

EBITDA

$

28,749

$

7,543

$

(134

)

$

(7,143

)

29,015

Transaction-related charges

-

-

70

2

72

(Gain) Loss on disposition of assets

-

3

46

-

49

ADJUSTED EBITDA

$

28,749

$

7,546

$

(18

)

$

(7,141

)

29,136

Revenue

80,064

28,160

874

-

109,098

ADJUSTED EBITDA MARGIN

35.9

%

26.8

%

-2.1

%

NA

26.7

%

For the three months ended June 30, 2019 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Operating income (loss)

$

11,057

$

1,521

$

167

$

(9,991

)

$

2,754

Depreciation and amortization expense

13,606

5,551

638

1,754

21,549

EBITDA

$

24,663

$

7,072

$

805

$

(8,237

)

24,303

Transaction-related charges

-

-

-

28

28

(Gain) Loss on disposition of assets

(7

)

(104

)

-

-

(111

)

ADJUSTED EBITDA

$

24,656

$

6,968

$

805

$

(8,209

)

24,220

Revenue

79,859

26,414

1,448

-

107,721

ADJUSTED EBITDA MARGIN

30.9

%

26.4

%

55.6

%

NA

22.5

%

ATN International, Inc.

Reconciliation of Non-GAAP Measures

(In Thousands)

For the six months ended June 30, 2020 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Operating income (loss)

$

28,005

$

4,019

$

(1,077

)

$

(16,623

)

$

14,324

Depreciation and amortization expense

28,448

11,602

1,100

3,359

44,509

EBITDA

$

56,453

$

15,621

$

23

$

(13,264

)

58,833

Transaction-related charges

-

-

84

32

116

(Gain) Loss on disposition of assets

13

5

46

-

64

ADJUSTED EBITDA

$

56,466

$

15,626

$

153

$

(13,232

)

59,013

Revenue

162,349

55,459

2,196

-

220,004

ADJUSTED EBITDA MARGIN

34.8

%

28.2

%

7.0

%

NA

26.8

%

For the six months ended June 30, 2019 is as follows:

International Telecom

US Telecom

Renewable Energy

Corporate and Other *

Total

Operating income (loss)

$

24,936

$

(2,006

)

$

(16

)

$

(18,045

)

$

4,869

Depreciation and amortization expense

26,621

11,149

1,253

3,244

42,267

EBITDA

$

51,557

$

9,143

$

1,237

$

(14,801

)

47,136

Transaction-related charges

-

-

-

68

68

(Gain) Loss on disposition of assets

(14

)

66

139

-

191

ADJUSTED EBITDA

$

51,543

$

9,209

$

1,376

$

(14,733

)

47,395

Revenue

160,176

47,907

2,938

-

211,021

ADJUSTED EBITDA MARGIN

32.2

%

19.2

%

46.8

%

NA

22.5

%


Contact:
978-619-1300
Michael T. Prior
Chairman and
Chief Executive Officer
Justin D. Benincasa
Chief Financial Officer