ATN Reports Second Quarter 2020 Results

Rhea-AI Summary

ATN International reported Q2 2020 results with consolidated revenues of $109.1 million, up 1% year-over-year. Operating income increased to $7.0 million, and EBITDA rose 19% to $29.0 million. The International Telecom segment showed resilience, fueled by growing demand for broadband services, while US Telecom benefited from federal revenue support. However, the company faces challenges due to pandemic-related delays impacting international markets and construction timelines. The total cash standing was $125.9 million, providing financial flexibility.

Positive

• Q2 2020 consolidated revenues increased by 1% to $109.1 million.
• Operating income grew to $7.0 million, up from $2.8 million in Q2 2019.
• EBITDA rose 19% year-over-year to $29.0 million.
• International Telecom revenue increased due to rising broadband demand.
• US Telecom segment saw a 7% revenue increase due to federal support contracts.

Negative

• Lower mobile revenue and handset sales due to pandemic-related restrictions.
• Construction delays impacting FirstNet network buildout.
• Concerns over economic impact from prolonged travel restrictions on international markets.

• 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

FAQ

What were ATNI's Q2 2020 revenue and EBITDA results?

ATNI reported Q2 2020 revenues of $109.1 million and EBITDA of $29.0 million.

How did ATNI's operating income change in Q2 2020?

Operating income for Q2 2020 was $7.0 million, an increase from $2.8 million in Q2 2019.

What challenges did ATNI face in Q2 2020?

Challenges included lower mobile revenues and construction delays due to the pandemic.

What is ATNI's total cash position as of June 30, 2020?

As of June 30, 2020, ATNI had total cash, cash equivalents, and restricted cash of $125.9 million.

How did ATNI's International Telecom segment perform in Q2 2020?

The International Telecom segment reported increased revenues driven by strong demand for broadband services.