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ATN Reports Third Quarter 2020 Results

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·24 min read
In this article:
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  • Results Demonstrate Resilience and Discipline of Company’s Operations

  • International Telecom Posted Strong Growth in Operating Income and Cash Flow

  • US Telecom Delivers Initial FirstNet Sites and Steady Sequential Results

BEVERLY, Mass., Oct. 28, 2020 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the third quarter ended September 30, 2020.

Business Review and Outlook

Commenting on results, Michael Prior, Chief Executive Officer said, “In a time when connectivity and communications are essential, our telecom services operations demonstrated resilience and the benefits of our focus on operational efficiencies and reliability.

“Our International Telecom segment posted another quarter of improved profitability driven by a modest revenue increase and significant cost reductions achieved in several markets. Although some of our markets have been impacted by on-going pandemic-related travel restrictions, we continued to experience strong demand for our data services. This includes high speed internet to the home, an area in which our ongoing network investments have made us a leading high-quality service provider in all of our markets. Also, we were pleased to see a sequential increase in demand for our mobile services, reflecting the benefits of several ongoing sales and marketing initiatives. Our year-on-year EBITDA growth and lower capital expenditures in the segment provides us with substantial cash flow to invest in growth and other opportunities.

“US Telecom results have remained consistent over the last four quarters, however, year-on-year comparisons in this quarter are negatively affected by the previously-discussed treatment of restructured contracts which eliminated seasonality in our revenue reporting this year. After initial pandemic-related construction delays, we completed the first few sites of our FirstNet build-out and expect to complete approximately 25% of the sites by the end of this year. Also, we continue to build out broadband services in under-served rural areas of the country under various programs and initiatives. Our team did excellent work in connection with the FCC’s CBRS auction, which concluded last month with an investment of approximately $20.4 million.

“In summary, we are pleased with how well our operations have performed under challenging conditions, particularly in our international markets, where we have built a portfolio of high value, quality assets by investing in our networks and in management teams that continue to improve margins and quality of service. We are focused on using the cash flow from these operations and our substantial balance sheet capacity to invest in initiatives and programs that we believe have good prospects for growth and attractive risk-adjusted returns,” Mr. Prior concluded.

Third Quarter Results

Third quarter 2020 consolidated revenues of $111.7 million were down 3% compared to the prior year quarter’s revenue of $115.6 million. Operating income for the quarter was $9.6 million, down compared with the prior year quarter’s $10.2 million. EBITDA1 was $31.1 million in the third quarter, down by 5% compared to $32.9 million in the prior year period. Net income attributable to ATN’s stockholders for the third quarter was $2.7 million, or $0.17 per diluted share, compared with the prior year period’s net income of $1.4 million, or $0.09 per diluted share.

Third 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 September 30, 2020

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other

Total

Revenue

$

82,465

$

28,097

$

1,177

$

-

$

111,739

Operating Income (loss)

$

16,024

$

2,218

$

(98

)

$

(8,587

)

$

9,557

EBITDA1

$

29,695

$

7,947

$

393

$

(6,898

)

$

31,137

Capital Expenditures

$

8,509

$

8,371

$

482

$

1,334

$

18,696

Nine Months Ended September 30, 2020

Revenue

$

244,813

$

83,557

$

3,373

$

-

$

331,743

Operating Income (loss)

$

44,119

$

6,241

$

(1,175

)

$

(25,306

)

$

23,879

EBITDA1

$

86,239

$

23,572

$

415

$

(20,258

)

$

89,968

Capital Expenditures

$

28,439

$

17,254

$

2,116

$

2,853

$

50,662


Segment Results (in Thousands)

Three Months Ended September 30, 2019

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other

Total

Revenue

$

81,285

$

32,893

$

1,438

$

-

$

115,616

Operating Income (loss)

$

10,867

$

7,912

$

(714

)

$

(7,817

)

$

10,248

EBITDA1

$

24,956

$

13,682

$

302

$

(6,089

)

$

32,851

Capital Expenditures

$

9,467

$

2,165

$

1,366

$

1,093

$

14,091

Nine Months Ended September 30, 2019

Revenue

$

241,461

$

80,800

$

4,376

$

-

$

326,637

Operating Income (loss)

$

35,802

$

5,927

$

(750

)

$

(25,862

)

$

15,117

EBITDA1

$

76,511

$

22,846

$

1,519

$

(20,889

)

$

79,987

Capital Expenditures

$

33,159

$

8,533

$

2,183

$

5,611

$

49,486

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 and industry competitors, and to facilitate discussions with investors and analysts.

International Telecom

International Telecom revenues are generated by delivery of a broad range of communications services, including data, voice and video services from our fixed and mobile network operations in Bermuda and the Caribbean. International Telecom revenues were $82.5 million for the quarter, a 1% increase year-on-year mainly due to increases in fixed broadband revenues partially offset by lower carrier services revenues related to lower roaming traffic due to travel restrictions. Compared to the prior year quarter, operating income increased 47% to $16.0 million and EBITDA1 increased 19% to $29.7 million, respectively, primarily from lower operating costs in the quarter. In October 2020, we completed a transaction to increase our equity ownership in One Communications, the Company’s Bermuda and Cayman based subsidiary, through the purchase of an additional approximately 10% stake, which is expected to be accretive to overall Company earnings beginning in the fourth quarter of 2020. Since the 2016 merger of our Bermuda-based mobile operations with KeyTech to create One Communications, we have increased our equity ownership position from 50% to approximately 70%.

US Telecom

US Telecom revenues consist mainly of carrier services revenues and fixed and mobile retail revenues from our networks and operations in the western United States, as well as communications services provided to enterprise customers. US Telecom segment revenues were $28.1 million in the quarter, a decrease of 15% from the prior year period primarily due to the accounting impact of restructured carrier contracts, which eliminated the seasonal revenue accounting of the previous agreements. The network build portion of the FirstNet agreement has continued during the pandemic and the first few sites were completed and activated during the third quarter. Although the overall timing of the build schedule has been delayed as a result of the impact of pandemic-related restrictions, we expect construction revenues to be generated 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 and EBITDA1 for this segment of $2.2 million and $7.9 million, respectively, each decreased by $5.7 million from the prior year’s quarter mostly as a result of the revenue impact of restructured carrier contracts.

Renewable Energy

Renewable Energy segment revenues are principally the result of the generation and sale of electric power generated by our commercial solar projects in India. We ended the third 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 and EBITDA1 of $0.1 million and $0.4 million, respectively, each improved compared with the prior year’s quarter due to lower operating expenses.

____________________________

1See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at September 30, 2020 was $136.2 million. Net cash provided by operating activities was $71.6 million for the nine months ended September 30, 2020, compared with $56.8 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, partially offset by a current year increase in cash used for working capital. For the nine months ended September 30, 2020, the Company used net cash of $97.6 million for investing and financing activities compared to $83.4 million for the prior year period. In the current year, the net use of cash was most significantly comprised of $50.7 million in capital expenditures, $20.4 million in purchases of FCC spectrum, $8.8 million of repurchases of non-controlling interests, $8.3 million of ATN share repurchases, $8.2 million of dividends on common stock and $6.5 million in minority partner distributions.

Conference Call Information

ATN will host a conference call on Thursday, October 29, 2020 at 11:00 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. The dial-in numbers are US/Canada: (877) 734-4582 and International: (678) 905-9376, conference ID 6472418. A replay of the call will be available at ir.atni.com beginning at approximately 2:00 p.m. (ET) on October 29, 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 future revenue, operating income, EBITDA and capital expenditures; the competitive environment in our key markets, demand for our services and industry trends; 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, as amended by Amendment No. 1 to the Annual Report on Form 10-K filed with the SEC on April 29, 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 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)

September 30,

December 31,

2020

2019

Assets:

Cash and cash equivalents

$

135,153

$

161,287

Restricted cash

1,072

1,071

Short-term investments

403

416

Other current assets

88,956

65,949

Total current assets

225,584

228,723

Property, plant and equipment, net

589,428

605,581

Operating lease right-of-use assets

64,294

68,763

Goodwill and other intangible assets, net

181,040

161,818

Other assets

53,068

65,841

Total assets

$

1,113,414

$

1,130,726

Liabilities and Stockholders’ Equity:

Current portion of long-term debt

$

3,750

$

3,750

Taxes payable

7,921

8,517

Current portion of lease liabilities

10,902

11,406

Other current liabilities

110,289

95,996

Total current liabilities

132,862

119,669

Long-term debt, net of current portion

$

79,973

$

82,676

Deferred income taxes

2,602

8,680

Lease liabilities

53,543

56,164

Other long-term liabilities

49,836

57,454

Total liabilities

318,816

324,643

Total ATN International, Inc.’s stockholders’ equity

667,875

676,122

Non-controlling interests

126,723

129,961

Total equity

794,598

806,083

Total liabilities and stockholders’ equity

$

1,113,414

$

1,130,726


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,

2020

2019

2020

2019

Revenues:

Communications services

$

108,721

$

112,840

$

322,865

$

318,473

Other

3,018

2,776

8,878

8,164

Total revenue

111,739

115,616

331,743

326,637

Operating expenses:

Termination and access fees

26,979

27,622

83,562

83,440

Construction costs

390

-

390

-

Engineering and operations

18,127

20,095

53,983

58,234

Sales, marketing and customer service

9,344

9,785

28,220

29,048

General and administrative

25,735

25,110

75,413

75,518

Transaction-related charges

31

21

147

89

Depreciation and amortization

21,580

22,603

66,089

64,870

(Gain) loss on disposition of assets

(4

)

132

60

321

Total operating expenses

102,182

105,368

307,864

311,520

Operating income

9,557

10,248

23,879

15,117

Other income (expense):

Interest expense, net

(1,243

)

(884

)

(3,664

)

(1,983

)

Other income (expense)

(2,031

)

(2,686

)

(4,341

)

(2,755

)

Other income (expense), net

(3,274

)

(3,570

)

(8,005

)

(4,738

)

Income before income taxes

6,283

6,678

15,874

10,379

Income tax (benefit) expense

92

1,834

(1,057

)

2,774

Net Income

6,191

4,844

16,931

7,605

Net income attributable to non-controlling interests, net

(3,530

)

(3,459

)

(10,538

)

(8,657

)

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

$

2,661

$

1,385

$

6,393

$

(1,052

)

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

Basic Net Income (Loss)

$

0.17

$

0.09

$

0.40

$

(0.07

)

Diluted Net Income (Loss)

$

0.17

$

0.09

$

0.40

$

(0.07

)

Weighted average common shares outstanding:

Basic

15,962

16,000

15,946

15,984

Diluted

16,011

16,007

15,991

15,984

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)

Nine Months Ended September 30,

2020

2019

Net income

$

16,931

$

7,605

Depreciation and amortization

66,089

64,870

Provision for doubtful accounts

4,452

3,796

(Gain) Loss on disposition of assets

60

321

Stock-based compensation

4,608

4,881

Deferred income taxes

(6,078

)

(6,287

)

Loss on investments

3,360

2,131

Change in prepaid and accrued income taxes

620

(13,889

)

Change in other operating assets and liabilities

(19,295

)

(7,262

)

Other non-cash activity

844

681

Net cash provided by operating activities

71,591

56,847

Capital expenditures

(50,662

)

(49,486

)

Purchases of intangible assets, including deposits

(20,396

)

-

Purchases of strategic investments

(2,768

)

(10,285

)

Purchase of short-term investments

(116

)

(8,028

)

Sale of strategic investments

11,969

-

Sale of short-term investments

-

5,141

Net cash used in investing activities

(61,973

)

(62,658

)

Dividends paid on common stock

(8,166

)

(8,160

)

Distributions to non-controlling interests

(6,503

)

(5,760

)

Principal repayments of term loan

(2,814

)

(2,825

)

Payment of debt issuance costs

(1,096

)

(1,340

)

Stock-based compensation share repurchases

(1,733

)

(1,607

)

Purchases of common stock - share buyback

(6,589

)

(162

)

Repurchases of non-controlling interests

(8,763

)

(1,353

)

Investments made by minority shareholders

-

488

Net cash used in financing activities

(35,664

)

(20,719

)

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

(87

)

(26

)

Net change in total cash, cash equivalents and restricted cash

(26,133

)

(26,556

)

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

162,358

192,907

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

$

136,225

$

166,351


Table 4

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

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

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

21,406

$

2,432

$

-

$

-

$

23,838

Fixed

57,364

5,419

-

-

62,783

Carrier services

1,851

19,852

-

-

21,703

Other

397

-

-

-

397

Total communications services

$

81,018

$

27,703

$

-

$

-

$

108,721

Renewable Energy

$

-

$

-

$

1,177

$

-

$

1,177

Managed Services

1,447

-

-

-

1,447

Construction

-

394

-

-

394

Total Other

$

1,447

$

394

$

1,177

$

-

$

3,018

Total Revenue

$

82,465

$

28,097

$

1,177

$

-

$

111,739

Operating Income (Loss)

$

16,024

$

2,218

$

(98

)

$

(8,587

)

$

9,557

Stock-based compensation

29

-

66

1,792

1,887

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

$

(2,762

)

$

(786

)

$

18

$

-

$

(3,530

)

Non GAAP measures:

EBITDA (1)

$

29,695

$

7,947

$

393

$

(6,898

)

$

31,137

Adjusted EBITDA (2)

$

29,695

$

7,943

$

393

$

(6,867

)

$

31,164

Balance Sheet Data (at September 30, 2020):

Cash, cash equivalents and investments

$

67,701

$

25,177

$

22,376

$

20,302

$

135,556

Total current assets

124,515

59,801

25,290

15,978

225,584

Fixed assets, net

452,303

77,017

45,773

14,335

589,428

Total assets

664,307

233,288

71,757

144,062

1,113,414

Total current liabilities

71,254

36,898

909

23,801

132,862

Total debt

83,723

-

-

-

83,723

* 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 September 30, 2019 is as follows:

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

21,364

$

2,601

$

-

$

-

$

23,965

Fixed

55,845

4,304

-

-

60,149

Carrier services

2,403

25,988

-

-

28,391

Other

335

-

-

-

335

Total communications services

$

79,947

$

32,893

$

-

$

-

$

112,840

Renewable Energy

$

-

$

-

$

1,438

$

-

$

1,438

Managed Services

1,338

-

-

-

1,338

Total Other

$

1,338

$

-

$

1,438

$

-

$

2,776

Total Revenue

$

81,285

$

32,893

$

1,438

$

-

$

115,616

Operating Income (Loss)

$

10,867

$

7,912

$

(714

)

$

(7,817

)

$

10,248

Stock-based compensation

285

-

-

1,263

1,548

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

$

(2,154

)

$

(1,342

)

$

37

$

-

$

(3,459

)

Non GAAP measures:

EBITDA (1)

$

24,956

$

13,682

$

302

$

(6,089

)

$

32,851

Adjusted EBITDA (2)

$

24,956

$

13,779

$

337

$

(6,068

)

$

33,004

* 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 nine months ended September 30, 2020 is as follows:

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

60,604

$

7,203

$

-

$

-

$

67,807

Fixed

172,420

15,181

-

-

187,601

Carrier services

5,392

60,779

-

-

66,171

Other

1,286

-

-

-

1,286

Total communications services

$

239,702

$

83,163

$

-

$

-

$

322,865

Renewable Energy

$

-

$

-

$

3,374

$

-

$

3,374

Managed Services

5,110

-

-

-

5,110

Construction

-

394

-

-

394

Total Other

$

5,110

$

394

$

3,374

$

-

$

8,878

Total Revenue

$

244,812

$

83,557

$

3,374

$

-

$

331,743

Operating Income (Loss)

$

44,119

$

6,241

$

(1,175

)

$

(25,306

)

$

23,879

Stock-based compensation

20

-

197

4,391

4,608

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

$

(7,770

)

$

(2,880

)

$

112

$

-

$

(10,538

)

Non GAAP measures:

EBITDA (1)

$

86,239

$

23,572

$

415

$

(20,258

)

$

89,968

Adjusted EBITDA (2)

$

86,252

$

23,573

$

545

$

(20,195

)

$

90,175

* 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 nine months ended September 30, 2019 is as follows:

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Statement of Operations Data:

Revenue**

Mobility

$

62,766

$

8,095

$

-

$

-

$

70,861

Fixed

166,925

9,885

-

-

176,810

Carrier services

6,970

62,820

-

-

69,790

Other

1,012

-

-

-

1,012

Total communications services

$

237,673

$

80,800

$

-

$

-

$

318,473

Renewable Energy

$

-

$

-

$

4,376

$

-

$

4,376

Managed Services

3,788

-

-

-

3,788

Total Other

$

3,788

$

-

$

4,376

$

-

$

8,164

Total Revenue

$

241,461

$

80,800

$

4,376

$

-

$

326,637

Operating Income (Loss)

$

35,802

$

5,927

$

(750

)

$

(25,862

)

$

15,117

Stock-based compensation

306

-

-

4,575

4,881

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

$

(6,810

)

$

(1,864

)

$

17

$

-

$

(8,657

)

Non GAAP measures:

EBITDA (1)

$

76,511

$

22,846

$

1,519

$

(20,889

)

$

79,987

Adjusted EBITDA (2)

$

76,497

$

23,007

$

1,693

$

(20,800

)

$

80,397

* 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 September 30, 2020

Quarter ended

September 30,

December 31,

March 31,

June 30,

September 30,

2019

2019

2020

2020

2020

International Telecom Operational Data:

Mobile - Subscribers *

285,000

284,100

282,100

276,400

289,100

Fixed - Data Subscribers *

124,700

127,500

131,300

135,500

137,500

Fixed - Video Subscribers *

38,900

38,400

38,100

36,400

35,800

Fixed - Voice

164,900

164,800

166,700

167,100

167,900

* 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 September 30, 2020 is as follows:

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Operating income (loss)

$

16,024

$

2,218

$

(98

)

$

(8,587

)

$

9,557

Depreciation and amortization expense

13,671

5,729

491

1,689

21,580

EBITDA

$

29,695

$

7,947

$

393

$

(6,898

)

31,137

Transaction-related charges

-

-

-

31

31

(Gain) Loss on disposition of assets

-

(4

)

-

-

(4

)

ADJUSTED EBITDA

$

29,695

$

7,943

$

393

$

(6,867

)

31,164

Revenue

82,465

28,097

1,177

-

111,739

ADJUSTED EBITDA MARGIN

36.0

%

28.3

%

33.4

%

NA

27.9

%

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

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Operating income (loss)

$

10,867

$

7,912

$

(714

)

$

(7,817

)

$

10,248

Depreciation and amortization expense

14,089

5,770

1,016

1,728

22,603

EBITDA

$

24,956

$

13,682

$

302

$

(6,089

)

32,851

Transaction-related charges

-

-

-

21

21

(Gain) Loss on disposition of assets

-

97

35

-

132

ADJUSTED EBITDA

$

24,956

$

13,779

$

337

$

(6,068

)

33,004

Revenue

81,285

32,893

1,438

-

115,616

ADJUSTED EBITDA MARGIN

30.7

%

41.9

%

23.4

%

NA

28.5

%

ATN International, Inc.

Reconciliation of Non-GAAP Measures

(In Thousands)

For the nine months ended September 30, 2020 is as follows:

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Operating income (loss)

$

44,119

$

6,241

$

(1,175

)

$

(25,306

)

$

23,879

Depreciation and amortization expense

42,120

17,331

1,590

5,048

66,089

EBITDA

$

86,239

$

23,572

$

415

$

(20,258

)

89,968

Transaction-related charges

-

-

84

63

147

(Gain) Loss on disposition of assets

13

1

46

-

60

ADJUSTED EBITDA

$

86,252

$

23,573

$

545

$

(20,195

)

90,175

Revenue

244,812

83,557

3,374

-

331,743

ADJUSTED EBITDA MARGIN

35.2

%

28.2

%

16.2

%

NA

27.2

%

For the nine months ended September 30, 2019 is as follows:

International
Telecom

US Telecom

Renewable
Energy

Corporate
and Other *

Total

Operating income (loss)

$

35,802

$

5,927

$

(750

)

$

(25,862

)

$

15,117

Depreciation and amortization expense

40,709

16,919

2,269

4,973

64,870

EBITDA

$

76,511

$

22,846

$

1,519

$

(20,889

)

79,987

Transaction-related charges

-

-

-

89

89

(Gain) Loss on disposition of assets

(14

)

161

174

-

321

ADJUSTED EBITDA

$

76,497

$

23,007

$

1,693

$

(20,800

)

80,397

Revenue

241,461

80,800

4,376

-

326,637

ADJUSTED EBITDA MARGIN

31.7

%

28.5

%

38.7

%

NA

24.6

%


CONTACT:

978-619-1300

Michael T. Prior

Chairman and

Chief Executive Officer

Justin D. Benincasa

Chief Financial Officer