ATN Reports Second Quarter 2021 Results

Rhea-AI Summary

ATN International reported a 14% increase in Q2 2021 revenues to $123.9 million, driven by broadband and mobility growth. The acquisition of Alaska Communications is expected to contribute $105-$109 million in revenue and $27-$29 million in Adjusted EBITDA through 2021. However, operating income declined to $2.9 million, and net income dropped to $2.0 million, reflecting increased operational costs and expenses. The company is optimistic about growth from its expanded fiber network and partnerships.

Positive

• Q2 2021 revenue increased 14% year-over-year to $123.9 million.
• Alaska Communications acquisition expected to generate $105-$109 million in revenue and $27-$29 million in Adjusted EBITDA by year-end.
• International Telecom segment revenue grew 8% due to higher broadband and mobile subscribers.

Negative

• Operating income decreased to $2.9 million, down from $7.0 million in Q2 2020.
• Net income dropped to $2.0 million from $4.8 million in the prior year.
• Increased operational costs associated with managed services, regulatory fees, and one-time legal expenses.

Second Quarter 2021 Results Show Steady Performance

• International Telecom Continues to Generate Revenue and Subscriber Growth
• US Telecom Results Include Forecasted Increase in Operating Costs

Alaska Communications Acquisition Expected to Contribute Revenues of $105 million to $109 million and Adjusted EBITDA² of $27 million to $29 million from July 22nd to the end of 2021

BEVERLY, Mass., July 28, 2021 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the second quarter and six months ended June 30, 2021.

Business Review and Outlook

Michael Prior, Chief Executive Officer, commented, “We are excited about the opportunities ahead as we integrate Alaska Communications into our broader platform. The acquisition more than doubles the size of our US Telecom operations, scales our fiber network reach and provides attractive opportunities for expansion and growth. This investment is core to our strategy and history of creating value through owning and operating critical communications infrastructure in rural and remote markets.

“We see multiple opportunities to drive revenue growth by building on a strong base of contracted revenue and leveraging our expansive fiber network in Alaska and parts of the Lower 48. Our priorities include expanding anchor tenant fiber network builds and growing wholesale, enterprise and consumer connections utilizing that expanded network reach and capability. While we expect to gain modest cost savings net of integration expenses over the first year of our combination, our focus is on delivering high value revenue synergies.”

The Company expects Alaska Communications to contribute revenues of $105 million to $109 million and Adjusted EBITDA² of between $27 million and $29 million from the closing date of July 22^nd to the end of 2021. This guidance does not assume any material contribution from the growth priorities outlined above, which are expected to be more additive to results in 2022 and beyond.

Mr. Prior continued, “In the second quarter, our International Telecom operations delivered revenue growth of 8%, driven by continued strong demand for broadband as well as higher mobile subscriber levels in many of our markets. EBITDA¹ margin comparisons were constrained as significant pandemic-related cost reductions in 2020 did not continue into 2021. Additionally, we incurred increased costs associated with the expansion of our managed services business, higher market-specific regulatory and license fees and one-time legal expenses. We expect this segment to benefit as travel and tourism return to pre-pandemic levels and we continue to invest in the expansion of our core network infrastructure.

“In our US Telecom segment, beyond the addition of Alaska Communications and its potential for fiber driven revenue and margin expansion, we continue to work on transitioning our legacy wholesale roaming business into a broader communications infrastructure platform by pursuing growth strategies in rural networks, which include middle mile fiber and enterprise and consumer data services, as well as in private network solutions. Given the breadth of the growth opportunities we have identified in these markets, we plan to explore strategic opportunities to attract outside financial partners who would provide additional funding to accelerate our market penetration. In particular, we believe our private networks business, which has attributes similar to software as a service and cloud platform businesses, could benefit from separate strategic funding and partnership opportunities that support accelerated growth.

“Since our founding in 1987, ATN has focused on bringing connectivity and resource solutions to historically under-served markets. We are exceedingly proud of our record of providing the latest, high quality communications infrastructure and services to communities that have long been overlooked by the larger players. We are pleased to see the growing investor interest in businesses that deliver positive social impacts to the communities they serve, and we believe the Alaska Communications acquisition reinforces our commitment to this strategy,” Mr. Prior noted.

Second Quarter 2021 Results

Second quarter 2021 consolidated revenues of $123.9 million were up 14% compared to the prior year quarter’s revenue of $109.1 million, driven by strong increases in broadband and mobility revenues in International Telecom and FirstNet construction revenues in the U.S. Telecom segment. The second quarter of 2021 had operating income of $2.9 million and Adjusted EBITDA² of $25.2 million, which were both down compared with the prior year quarter’s operating income of $7.0 million and Adjusted EBITDA² of $29.1 million. The decrease in operating income and Adjusted EBITDA was mainly driven by an increase in operating costs in the International Telecom segment and by higher development spending and lower margin revenues in the U.S. Telecom segment. Net income attributable to ATN’s stockholders for the second quarter was $2.0 million, or $0.13 per diluted share, compared with the prior year period’s net income attributable to ATN’s stockholders of $4.8 million, or $0.30 per diluted share.

Second Quarter 2021 Operating Highlights
The Company has three reportable segments: (i) International Telecom; (ii) US Telecom; and (iii) Corporate and all Other.

The Company completed its acquisition of Alaska Communications Systems on July 22, 2021. The acquired business will become part of the Company’s US Telecom segment beginning in the third quarter of 2021. The segment and consolidated information in the tables includes the performance of each of the Company and Alaska Communications for the three and six months ended June 30, 2021.

Segment Results (in Thousands)       

Three Months Ended June 30, 2021
	International				US				Corp &			Total			Alaska
	Telecom				Telecom				All Other*			ATN			Communications
Revenue	$86,218				$37,647				$0			$123,865			$61,643
Operating Income (Loss)	$14,643				($556			)	($11,181		)	$2,906			$1,903
EBITDA1,3	$28,433				$4,523				($9,895		)	$23,061			$13,246
Adjusted EBITDA2,4	$28,437				$4,545				($7,782		)	$25,200			$15,589
Capital Expenditures**	$11,337				$3,854				$1,061			$16,252			$14,879
Six Months Ended June 30, 2021
	International				US				Corp &			Total			Alaska
	Telecom				Telecom				All Other*			ATN			Communications
Revenue	$170,036				$77,921				$418			$248,375			$122,311
Operating Income (Loss)	$27,786				($1,090			)	($20,442		)	$6,254			$4,861
EBITDA1,3	$55,402				$9,182				($17,668		)	$46,916			$27,252
Adjusted EBITDA2,4	$55,405				$9,193				($14,695		)	$49,903			$31,013
Capital Expenditures**	$21,843				$18,792				$1,297			$41,932			$21,781

*Corporate and All Other segment in this presentation includes both the Renewable Energy operating segment and the Corporate and Other segment.

**Includes reimbursable capital expenditures of $323 and $6,508 for the three and six months ended June 30, 2021, respectively.

International Telecom

International Telecom revenues are generated by delivery of a broad range of communications services, including data, voice and video services from the Company’s fixed and mobile network operations in Bermuda and the Caribbean as well as direct government payments as part of the FCC high-cost support program in the USVI. International Telecom revenues were $86.2 million for the quarter, an 8% increase year-on-year mainly due to increases in mobility and broadband revenues in multiple markets from increased subscribers and ARPU. Carrier services revenues also increased as tourism increased in the U.S. Virgin Islands following the expiration of pandemic-related restrictions for domestic travel. Compared to the prior year quarter, operating income remained flat at $14.6 million and Adjusted EBITDA² decreased 1% to $28.4 million primarily due to increased operating costs compared to pandemic-related cost reductions in the prior year, higher regulatory and license fees and one-time legal expenses of $1.1 million. We have increased our equity ownership in One Communications, the Company’s Bermuda and Cayman based subsidiary, through equity repurchases and at the end of the second quarter of 2021 own approximately 78% of the outstanding equity compared to 59% at the end of prior year’s quarter. For the second quarter of 2021, ATN ownership represented 83% of the $28.4 million of Adjusted EBITDA² for the segment.

US Telecom

US Telecom revenues consist mainly of carrier services revenues and fixed enterprise and mobile retail revenues from the Company’s networks and operations in the western United States, as well as revenues from providing private networks for connectivity and automation to enterprise customers nationwide, and revenues from various government programs including CAF II, E-Rate, Lifeline and rural healthcare support programs. US Telecom segment revenues were $37.6 million in the quarter, an increase of 34% from the prior year period due mostly to $9.3 million of FirstNet construction revenues. Additionally, increases in rural broadband revenues were partially offset by declines in carrier services due to lower contractual roaming revenues. For the segment, the operating loss of $0.6 million and Adjusted EBITDA² of $4.5 million compared unfavorably to the prior year’s quarter by $2.4 million and $3.0 million, respectively. This was a result of the anticipated operating expenses of approximately $3.0 million in the quarter, up $1.3 million over last year, to further fund the development of the private networks business. As anticipated, we also had increased network operating costs from the FirstNet and CARES sites that came on line in late 2020.

By the end of the second quarter of 2021, the Company had completed and activated approximately 40% of the total sites related to the network build portion of its FirstNet Agreement and expects to complete an additional 25% of the total build by the end of 2021. As revenues from the build will be largely offset by construction costs, the Company does not expect a material impact on operating income from this activity.  

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at June 30, 2021 totaled $96.0 million. Net cash provided by operating activities was $27.5 million for the six months ended June 30, 2021, compared with $40.4 million for the prior year period. The decline in operating cash flow compared with the prior year is mostly the result of a current year decrease in operating income and an increase in the FirstNet construction customer receivable. For the six months ended June 30, 2021, the Company used net cash of $36.5 million for investing and financing activities compared to $76.7 million for the prior year period. For the six months ended June 30, 2021, the net use of cash was primarily attributable to $41.9 million in capital expenditures, which included $6.5 million of capital expenditures that are or will be reimbursed to us, $12.7 million of purchases of minority equity interests in our subsidiaries, $4.5 million in minority partner distributions and $5.4 million of dividends to Company stockholders. These uses of cash were partially offset by $18.6 million in net proceeds received from the completion of the Vibrant Energy equity sale and $17.6 million in new borrowings under the FirstNet receivables credit facility. Subsequent to the quarter, on July 22, 2021 the Company completed the acquisition of Alaska Communications and now owns approximately 52% of that company. The Company drew $73.0 million under its existing revolving credit facility to fund its portion of the merger consideration and subsequently repaid $10.0 million of that borrowing. In conjunction with the merger, Alaska Communications also entered into a new credit agreement that is non-recourse to the Company and borrowed $210.0 million under the term loan facility and $10 million under the $35.0 million revolving facility.

Conference Call Information

ATN will host a conference call on Thursday, July 29, 2021 at 10:00 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 7032438. A replay of the call will be available at ir.atni.com beginning at approximately 1:00 p.m. (ET) on Thursday, July 29, 2021.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, operates communications and technology businesses in the United States and internationally, including the Caribbean region, with a particular focus on markets with a need for growing demand for infrastructure investments and technology improvements. Our operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential and business customers, including a range of high-speed internet and data services, fixed and mobile wireless solutions, video and voice services, and (ii) carrier and enterprise communication services, wholesale communications infrastructure services such as terrestrial and submarine fiber optic transport, communications tower facilities, managed mobile networks, and in-building wireless 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, and on our business and operations; expectations regarding future revenues, operating income, EBITDA and capital expenditures; the competitive environment in our key markets, demand for our services and industry trends; our expectations regarding construction progress under our FirstNet agreement and the effect such progress will have on our financial results; our expectations regarding the benefits of our acquisition of Alaska Communications; the impact of federal support program revenues; our liquidity; the organization of our business; 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 retention of and future growth of our subscriber base, including growth in our private networks business; (2) our ability to successfully integrate our newly acquired Alaska Communications business with our own and realize cost synergies and expansion plans; (3) our ability to maintain favorable roaming arrangements, receive roaming traffic and satisfy the needs and demands of our major wireless customers; (4) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address rapid and significant technological changes in the telecommunications industry; (5) government regulation of our businesses, which may impact our FCC and other telecommunications licenses; (6) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (7) economic, political and other risks and opportunities facing our operations, including those resulting from the pandemic; (8) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (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 and our ability to secure the appropriate level of insurance coverage for these assets; (11) increased competition; (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; and (13) our continued access to capital and credit markets. 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, 2020, filed with the SEC on March 1, 2021, 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, the Company has included EBITDA and Adjusted EBITDA in this release and in the tables included herein.

EBITDA is defined as operating income (loss) before depreciation and amortization expense. The Company has defined Adjusted EBITDA as operating income (loss) before depreciation and amortization expense, transaction-related charges and the gain (loss) on disposition of assets. Alaska Communications has defined Adjusted EBITDA as operating income (loss) before depreciation and amortization expense, transaction and termination costs, the loss on disposal of assets, stock-based compensation and the net loss attributable to non-controlling interest. The Company believes that the inclusion of these non-GAAP financial measures help investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. Management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release. While non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating the Company’s own operating results over different periods of time, the Company urges investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

In the case of the Alaska Communications Acquisition contribution of Adjusted EBITDA guidance, we are unable to provide a formal reconciliation from operating income to Adjusted EBITDA as result of the impact of the cost of ongoing integration activities, transaction costs and the impact of purchase accounting on depreciation and amortization expenses over the period. The company will provide all actual operating income to Adjusted EBITDA reconciliations in its reporting for the third quarter of 2021.    

Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
	June 30,			December 31,
	2021			2020
Assets:
Cash and cash equivalents	$	94,885		$	103,925
Restricted cash		1,072			1,072
Assets held-for-sale		-			34,735
Customer receivable		4,094			1,227
Other current assets		99,794			99,106
Total current assets		199,845			240,065
Property, plant and equipment, net		526,285			536,462
Operating lease right-of-use assets		62,287			63,235
Customer receivable - long term		28,333			9,614
Goodwill and other intangible assets, net		180,006			180,687
Other assets		69,818			53,648
Total assets	$	1,066,574		$	1,083,711
Liabilities and Stockholders’ Equity:
Current portion of long-term debt	$	3,750		$	3,750
Current portion of customer receivable credit facility		2,335			-
Taxes payable		7,496			7,501
Current portion of lease liabilities		12,871			12,371
Liabilities held-for-sale		-			717
Other current liabilities		110,120			123,589
Total current liabilities		136,572			147,928
Long-term debt, net of current portion	$	67,294		$	69,073
Customer receivable credit facility, net of current portion		14,322			-
Deferred income taxes		7,439			10,675
Lease liabilities		51,306			51,082
Other long-term liabilities		48,455			50,617
Total liabilities		325,388			329,375
Total ATN International, Inc.’s stockholders’ equity		641,926			645,649
Non-controlling interests		99,260			108,687
Total equity		741,186			754,336
Total liabilities and stockholders’ equity	$	1,066,574		$	1,083,711

														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,
		2021				2020				2021				2020
Revenues:
Communications services		$	112,964			$	106,240			$	223,599			$	214,145
Other			10,901				2,858				24,776				5,859
Total revenue			123,865				109,098				248,375				220,004
Operating expenses (excluding depreciation and amortization unless otherwise indicated):
Cost of services			48,479				45,837				97,986				92,439
Cost of construction revenue			9,535				-				22,142				-
Selling, general and administrative			40,652				34,125				78,344				68,552
Transaction-related charges			1,396				72				2,126				116
Depreciation and amortization			20,155				21,991				40,662				44,509
Loss on disposition of long-lived assets			743				49				861				64
Total operating expenses			120,960				102,074				242,121				205,680
Operating income			2,905				7,024				6,254				14,324
Other income (expense):
Interest expense, net			(1,091	)			(1,508	)			(2,245	)			(2,421	)
Other income (expense)			(66	)			590				2,309				(2,310	)
Other income (expense), net			(1,157	)			(918	)			64				(4,731	)
Income before income taxes			1,748				6,106				6,318				9,593
Income tax benefit			(1,542	)			(2,258	)			(1,247	)			(1,149	)
Net Income			3,290				8,364				7,565				10,742
Net income attributable to non-controlling interests, net			(1,271	)			(3,618	)			(2,842	)			(7,009	)
Net income attributable to ATN International, Inc. stockholders		$	2,019			$	4,746			$	4,723			$	3,733
Net income per weighted average share attributable to ATN International, Inc. stockholders:
Basic Net Income		$	0.13			$	0.30			$	0.30			$	0.23
Diluted Net Income		$	0.13			$	0.30			$	0.30			$	0.23
Weighted average common shares outstanding:
Basic			15,912				15,970				15,907				15,958
Diluted			15,921				16,004				15,930				15,993

Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
	Six Months Ended June 30,
	2021				2020
Net income	$	7,565			$	10,742
Depreciation and amortization		40,662				44,509
Provision for doubtful accounts		2,299				3,397
Amortization of debt discount and debt issuance costs		337				260
Loss on disposition of assets and assets held-for-sale		861				64
Stock-based compensation		3,511				2,721
Deferred income taxes		(3,236	)			(3,204	)
(Gain) loss on equity investments		(1,793	)			1,412
Unrealized (gain) loss on foreign currency		(81	)			780
Increase in customer receivable		(21,586	)			-
Change in prepaid and accrued income taxes		(1,360	)			(1,439	)
Change in other operating assets and liabilities		281				(18,867	)
Net cash provided by operating activities		27,460				40,375
Capital expenditures		(35,424	)			(30,597	)
Reimbursable capital expenditures		(6,508	)			(1,368	)
Purchases of intangible assets, including deposits		-				(20,000	)
Purchases of strategic investments		(5,242	)			(2,768	)
Receipt of government grants		3,292				-
Sale of business, net of transferred cash of $0.9 million and $0 million, respectively		18,597				-
Net cash used in investing activities		(25,285	)			(54,733	)
Dividends paid on common stock		(5,411	)			(5,443	)
Distributions to non-controlling interests		(4,488	)			(5,541	)
Principal repayments of term loan		(1,883	)			(1,876	)
Payment of debt issuance costs		-				(1,059	)
Proceeds from customer receivable credit facility		17,582				-
Repayment of customer receivable credit facility		(384	)			-
Purchases of common stock - stock-based compensation		(1,713	)			(1,733	)
Purchases of common stock - share repurchase plan		(2,219	)			(2,449	)
Repurchases of non-controlling interests		(12,699	)			(3,911	)
Net cash used in financing activities		(11,215	)			(22,012	)
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash		-				(118	)
Net change in total cash, cash equivalents and restricted cash		(9,040	)			(36,488	)
Total cash, cash equivalents and restricted cash, beginning of period		104,997				162,358
Total cash, cash equivalents and restricted cash, end of period	$	95,957			$	125,870

													Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended June 30, 2021 is as follows:
	International Telecom			US Telecom			Renewable Energy			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility	$	22,754		$	2,407		$	-		$	-		$	25,161
Fixed		59,126			5,877			-			-			65,003
Carrier services		2,523			20,038			-			-			22,561
Other		239			-			-			-			239
Total communications services	$	84,642		$	28,322		$	-		$	-		$	112,964
Renewable Energy	$	-		$	-		$	-		$	-		$	-
Managed Services		1,576			-			-			-			1,576
Construction		-			9,325			-			-			9,325
Total Other	$	1,576		$	9,325		$	-		$	-		$	10,901
Total Revenue	$	86,218		$	37,647		$	-		$	-		$	123,865
Operating Income (Loss)	$	14,643		$	(556	)	$	(771	)	$	(10,411	)	$	2,905
Stock-based compensation		10			-			-			2,165			2,175
Non-controlling interest ( net income or (loss) )	$	(1,829	)	$	558		$	-		$	-		$	(1,271	)
Non GAAP measures:
EBITDA (1)	$	28,433		$	4,523		$	(771	)	$	(9,125	)	$	23,060
Adjusted EBITDA (2)	$	28,437		$	4,545		$	(54	)	$	(7,729	)	$	25,199
Balance Sheet Data (at June 30, 2021):
Cash, cash equivalents and investments	$	48,301		$	26,041		$	5,350		$	15,193		$	94,885
Total current assets		108,346			65,043			9,287			17,169			199,845
Fixed assets, net		447,261			68,064			-			10,960			526,285
Total assets		640,162			308,514			22,170			95,728			1,066,574
Total current liabilities		81,709			33,624			1,126			20,113			136,572
Total debt		71,044			16,657			-			-			87,701
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
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
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the six months ended June 30, 2021 is as follows:
	International Telecom			US Telecom			Renewable Energy			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility	$	44,575		$	5,267		$	-		$	-		$	49,842
Fixed		117,873			12,248			-			-			130,121
Carrier services		4,406			38,774			-			-			43,180
Other		456			-			-			-			456
Total communications services	$	167,310		$	56,289		$	-		$	-		$	223,599
Renewable Energy	$	-		$	-		$	418		$	-		$	418
Managed Services		2,726			-			-			-			2,726
Construction		-			21,632			-			-			21,632
Total Other	$	2,726		$	21,632		$	418		$	-		$	24,776
Total Revenue	$	170,036		$	77,921		$	418		$	-		$	248,375
Operating Income (Loss)	$	27,786		$	(1,090	)	$	(1,433	)	$	(19,009	)	$	6,254
Stock-based compensation		47			-			22			3,442			3,511
Non-controlling interest ( net income or (loss) )	$	(3,520	)	$	(118	)	$	796		$	-		$	(2,842	)
Non GAAP measures:
EBITDA (1)	$	55,402		$	9,182		$	(1,245	)	$	(16,423	)	$	46,916
Adjusted EBITDA (2)	$	55,405		$	9,193		$	(55	)	$	(14,640	)	$	49,903
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
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
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at December 31, 2020
	International Telecom			US Telecom			Renewable Energy			Corporate and Other *			Total
Balance Sheet Data (at December 31, 2020):
Cash, cash equivalents and investments	$	45,848		$	26,921		$	4,311		$	26,845		$	103,925
Total current assets		107,315			65,806			39,057			27,887			240,065
Fixed assets, net		449,888			73,717			-			12,857			536,462
Total assets		642,834			265,797			39,045			136,035			1,083,711
Total current liabilities		80,875			43,200			1,038			22,815			147,928
Total debt		72,823			-			-			-			72,823
(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, 2021
	Quarter ended
	June 30,			September 30,			December 31,			March 31,			June 30,
		2020			2020			2020			2021			2021
International Telecom Operational Data:
Mobile - Subscribers *
Pre-Paid		235,000			244,700			257,200			261,900			273,400
Post-Paid		40,100			43,100			44,700			45,500			46,400
Total		275,100			287,800			301,900			307,400			319,800
Mobile - Churn		2.55	%		1.77	%		2.18	%		2.28	%		2.21	%
Fixed - Subscribers*
Broadband		134,800			136,800			140,100			142,900			143,000
Video		36,300			35,800			35,800			35,300			33,600
Voice		163,900			163,700			164,300			165,500			165,800
* 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, 2021 is as follows:
	International Telecom			US Telecom			Renewable Energy			Corporate and Other *			Total
Operating income (loss)	$	14,643		$	(556	)	$	(771	)	$	(10,411	)	$	2,905
Depreciation and amortization expense		13,790			5,079			-			1,286			20,155
EBITDA	$	28,433		$	4,523		$	(771	)	$	(9,125	)		23,060
Transaction-related charges		-			-			-			1,396			1,396
(Gain) Loss on disposition of assets		4			22			717			-			743
ADJUSTED EBITDA	$	28,437		$	4,545		$	(54	)	$	(7,729	)		25,199
Revenue		86,218			37,647			-			-			123,865
ADJUSTED EBITDA MARGIN		33.0	%		12.1	%	NA			NA				20.3	%
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	%
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the six months ended June 30, 2021 is as follows:
	International Telecom			US Telecom			Renewable Energy			Corporate and Other *			Total
Operating income (loss)	$	27,786		$	(1,090	)	$	(1,433	)	$	(19,009	)	$	6,254
Depreciation and amortization expense		27,616			10,272			188			2,586			40,662
EBITDA	$	55,402		$	9,182		$	(1,245	)	$	(16,423	)		46,916
Transaction-related charges		-			-			566			1,560			2,126
(Gain) Loss on disposition of assets		3			11			624			223			861
ADJUSTED EBITDA	$	55,405		$	9,193		$	(55	)	$	(14,640	)		49,902
Revenue		170,036			77,921			418			-			248,375
ADJUSTED EBITDA MARGIN		32.6	%		11.8	%		-13.2	%	NA				20.1	%
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	%

	Table 6
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the three months ended June 30, 2021 is as follows:
Alaska Communications
	Total
Operating income (loss)	$	1,903
Depreciation and amortization expense		11,343
EBITDA		13,246
Transaction and termination costs		1,683
Loss on disposal of assets, net		307
Stock-based compensation		353
ADJUSTED EBITDA		15,589
For the six months ended June 30, 2021 is as follows:
Alaska Communications
	Total
Operating income (loss)	$	4,861
Depreciation and amortization expense		22,391
EBITDA		27,252
Transaction and termination costs		2,606
Loss on disposal of assets, net		391
Stock-based compensation		742
Net loss attributable to noncontrolling interest		22
ADJUSTED EBITDA		31,013

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.
2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.
3 See Table 6 for reconciliation of Alaska Communications Operating Income to EBITDA, a non-GAAP measure
4 See Table 6 for reconciliation of Alaska Communications Operating Income to Adjusted EBITDA, a non-GAAP measure

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

FAQ

What are the key figures from ATNI's Q2 2021 earnings report?

In Q2 2021, ATN International reported revenues of $123.9 million, operating income of $2.9 million, and net income of $2.0 million.

How much revenue is expected from the Alaska Communications acquisition?

The Alaska Communications acquisition is expected to contribute between $105 million and $109 million in revenue by the end of 2021.

What was the revenue growth percentage for ATNI's International Telecom segment?

The International Telecom segment experienced an 8% revenue growth in Q2 2021.

How did ATNI's operating income change in Q2 2021 compared to Q2 2020?

Operating income decreased to $2.9 million in Q2 2021, down from $7.0 million in Q2 2020.

What challenges did ATNI face in Q2 2021?

ATNI faced increased operational costs, regulatory fees, and one-time legal expenses, impacting overall profitability.