ATN Reports Second Quarter 2024 Results; Reiterates Full-Year 2024 Outlook
ATN International (ATNI) reported Q2 2024 results and reiterated its full-year 2024 outlook. Key highlights:
- Consolidated revenues decreased 2% to $183.3 million
- Net income increased to $9.0 million, or $0.50 per diluted share
- Adjusted EBITDA increased 6% to $48.7 million
- Total high-speed broadband subscribers increased by 9%
- Broadband homes passed by high-speed data services expanded by 22%
The company reaffirmed its 2024 outlook, expecting revenue of $730-750 million and Adjusted EBITDA of $190-200 million. ATN is focusing on leveraging its network investments to drive growth in high-speed data subscribers and network reach while improving operating efficiency.
ATN International (ATNI) ha riportato i risultati del secondo trimestre 2024 e ha confermato le sue previsioni per l'intero anno 2024. Principali punti salienti:
- I ricavi consolidati sono diminuiti del 2% a 183,3 milioni di dollari
- Il reddito netto è aumentato a 9,0 milioni di dollari, ovvero 0,50 dollari per azione diluita
- EBITDA rettificato aumentato del 6% a 48,7 milioni di dollari
- Il numero totale di abbonati a banda larga ad alta velocità è aumentato del 9%
- Le abitazioni raggiunte dai servizi di dati ad alta velocità sono aumentate del 22%
La società ha confermato le sue previsioni per il 2024, prevedendo ricavi tra 730 e 750 milioni di dollari e un EBITDA rettificato tra 190 e 200 milioni di dollari. ATN sta puntando a sfruttare i suoi investimenti in rete per stimolare la crescita degli abbonati ai dati ad alta velocità e l'espansione della rete, migliorando al contempo l'efficienza operativa.
ATN International (ATNI) informó sobre los resultados del segundo trimestre de 2024 y reiteró sus expectativas para todo el año 2024. Puntos destacados clave:
- Los ingresos consolidados disminuyeron un 2% a 183,3 millones de dólares
- El ingreso neto aumentó a 9,0 millones de dólares, o 0,50 dólares por acción diluida
- El EBITDA ajustado aumentó un 6% a 48,7 millones de dólares
- El número total de suscriptores de banda ancha de alta velocidad aumentó en un 9%
- Las viviendas alcanzadas por servicios de datos de alta velocidad se expandieron en un 22%
La compañía reafirmó su perspectiva para 2024, esperando ingresos de entre 730 y 750 millones de dólares y un EBITDA ajustado de entre 190 y 200 millones de dólares. ATN se está enfocando en aprovechar sus inversiones en red para impulsar el crecimiento en suscriptores de datos de alta velocidad y la cobertura de red, mientras mejora la eficiencia operativa.
ATN International (ATNI)은 2024년 2분기 실적을 보고하고 2024년 전체에 대한 전망을 재확인했습니다. 주요 하이라이트:
- 총 매출이 1억 8,330만 달러로 2% 감소했습니다.
- 순이익이 900만 달러, 즉 희석주당 0.50달러로 증가했습니다.
- 조정된 EBITDA가 4,870만 달러로 6% 증가했습니다.
- 고속 브로드밴드 가입자가 9% 증가했습니다.
- 고속 데이터 서비스로 연결된 가정 수가 22% 증가했습니다.
회사는 2024년 전망을 재확인하며 7억 3천만에서 7억 5천만 달러의 수익과 1억 9천만에서 2억 달러의 조정 EBITDA를 예상하고 있습니다. ATN은 고속 데이터 가입자 수와 네트워크 범위를 확대하기 위해 네트워크 투자 활용에 주력하고 있으며, 운영 효율성을 개선하고 있습니다.
ATN International (ATNI) a publié ses résultats du deuxième trimestre 2024 et a réitéré ses prévisions pour l'année complète 2024. Points clés :
- Les revenus consolidés ont diminué de 2 % pour atteindre 183,3 millions de dollars
- Le revenu net a augmenté à 9,0 millions de dollars, soit 0,50 dollar par action diluée
- L'EBITDA ajusté a augmenté de 6 % pour atteindre 48,7 millions de dollars
- Le nombre total d'abonnés à la large bande haut débit a augmenté de 9 %
- Le nombre de foyers raccordés aux services de données haut débit a augmenté de 22 %
L'entreprise a réaffirmé ses prévisions pour 2024, s'attendant à des revenus de 730 à 750 millions de dollars et un EBITDA ajusté de 190 à 200 millions de dollars. ATN se concentre sur l'exploitation de ses investissements dans le réseau pour stimuler la croissance des abonnés à la data haut débit et l'extension de son réseau, tout en améliorant l'efficacité opérationnelle.
ATN International (ATNI) berichtete über die Ergebnisse des zweiten Quartals 2024 und bekräftigte seine Prognose für das gesamte Jahr 2024. Wichtige Highlights:
- Die konsolidierten Erlöse gingen um 2% auf 183,3 Millionen Dollar zurück
- Der Nettogewinn stieg auf 9,0 Millionen Dollar, oder 0,50 Dollar pro verwässerter Aktie
- Das bereinigte EBITDA stieg um 6% auf 48,7 Millionen Dollar
- Die Zahl der Breitbandkunden mit Hochgeschwindigkeitsinternet stieg um 9%
- Die Haushalte, die durch Hochgeschwindigkeitsdatenservices erreicht wurden, erhöhten sich um 22%
Das Unternehmen bekräftigte seine Prognose für 2024 und erwartet Erlöse zwischen 730 und 750 Millionen Dollar sowie ein bereinigtes EBITDA zwischen 190 und 200 Millionen Dollar. ATN konzentriert sich darauf, seine Netzwerkinvestitionen zu nutzen, um das Wachstum der Hochgeschwindigkeitsdatenabonnenten und die Reichweite des Netzwerks zu fördern, während die Betriebseffizienz verbessert wird.
- Adjusted EBITDA increased 6% to $48.7 million
- Net income increased to $9.0 million, or $0.50 per diluted share
- Total high-speed broadband subscribers increased by 9%
- Broadband homes passed by high-speed data services expanded by 22%
- International Telecom segment revenues rose 4%
- $15.9 million gain on the sale of a non-core asset
- Consolidated revenues decreased 2% to $183.3 million
- US Telecom segment revenues were down 7% due to conclusion of Emergency Connectivity Fund program
- Interest expense increased year-over-year
Insights
ATN International's Q2 2024 results present a mixed picture with some positive developments and challenges. Key highlights include:
- Consolidated revenues decreased
2% to$183.3 million , primarily due to the conclusion of the Emergency Connectivity Fund program in the US Telecom segment. - Net income increased to
$9.0 million , or$0.50 per diluted share, boosted by a$15.9 million gain on the sale of a non-core asset. - Adjusted EBITDA increased
6% to$48.7 million , driven by lower operating expenses. - The company reiterated its full-year 2024 outlook, projecting revenue between
$730 million and$750 million and Adjusted EBITDA between$190 million and$200 million .
The company's strategic investments in 'First-to-Fiber' and 'Glass & Steel™' are showing promise, with a
However, investors should note the
Overall, ATN's focus on high-speed network expansion and margin improvement provides a solid foundation for sustainable recurring revenues and free cash flow generation. The company's ability to execute its strategic plan and capitalize on its network investments will be important for long-term shareholder value creation.
ATN International's Q2 2024 results reflect the ongoing transformation in the telecom industry, particularly the shift towards high-speed broadband and fiber networks. The company's strategic focus on 'First-to-Fiber' and 'Glass & Steel™' aligns well with industry trends, but also presents challenges and opportunities:
- Network Expansion: The
22% increase in homes passed by high-speed data services is impressive and positions ATN well for future growth. However, the company will need to maintain a high conversion rate to capitalize on this expanded footprint. - Subscriber Growth: The
9% increase in high-speed broadband subscribers is encouraging, but the overall1% decrease in total broadband customers suggests some cannibalization of lower-tier services. - Mobile Market: The flat performance in mobile subscribers indicates a mature market. ATN's focus on converting subscribers to higher-margin plans is a sound strategy in this environment.
- Infrastructure Investment: The reduction in capital expenditures to more normalized levels, supplemented by government funding, is a common industry approach. However, it may limit ATN's ability to differentiate through network superiority.
The telecom industry is increasingly focused on maximizing return on invested capital. ATN's strategy of leveraging its upgraded network assets while reducing capital intensity aligns with this trend. However, the company will need to carefully balance network expansion with operational efficiency to drive sustainable growth and profitability in a highly competitive market.
Leveraging “First-to-Fiber” and “Glass & Steel™” Strategic Investments to Deliver Growth in High-Speed Data Subscribers and Network Reach
- Total high-speed broadband subscribers increased by
9% - Broadband homes passed by high-speed data services expanded by
22% - Capital expenditures were
$61.8 million (net of$46.2 million reimbursements) for the first six months of 2024
International Telecom Segment Growth and Cost Management Benefit Q2 2024 Results
- Second quarter consolidated revenues decreased
2% to$183.3 million , in line with expectations - International Telecom segment revenues rose
4% supported by growth in consumer and business fixed revenues, and business mobility revenue - US Telecom segment revenues were down
7% due primarily to conclusion of Emergency Connectivity Fund (ECF) program - Second quarter net income increased to
$9.0 million , or$0.50 per diluted share inclusive of a$15.9 million gain on the sale of a non-core asset - Operating income increased to
$24.3 million - Adjusted EBITDA1 increased
6% to$48.7 million
Reaffirms 2024 Outlook
The Company reiterated expectations for full-year 2024 with:
- Revenue in the range of
$730 million to$750 million , excluding construction revenue - Adjusted EBITDA2 in the range of
$190 million to$200 million - Capital Expenditures in the range of
$100 million to$110 million , net of reimbursements - Net Debt Ratio3 in the range of 2.25x to 2.50x exiting 2024
Earnings Conference Call
- Thursday, July 25, 2024, at 10:00 a.m. ET; webcast link:
https://edge.media-server.com/mmc/p/x3cd8cb6
BEVERLY, Mass., July 24, 2024 (GLOBE NEWSWIRE) -- ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported financial results for the quarter ended June 30, 2024.
Remarks by Brad Martin, ATN Chief Executive Officer
“We are making progress in our efforts to leverage our investments to deliver top line growth while improving operating efficiency. Our second quarter performance is driving the business toward that goal as we increased consolidated Adjusted EBITDA by
“We continue to enhance the performance and longevity of ATN’s network and improve the quality of our revenue streams through the execution of our First-to-Fiber and Glass & Steel™ strategies. In the second quarter, we grew homes passed by high-speed broadband and had a healthy conversion of subscribers to our high-value high-speed broadband networks. In mobility, we continue to convert our mobility subscriber base to higher margin pre-paid and post-paid plans, expand data usage, and increase business subscribers.”
“Looking ahead, we are reiterating our fiscal year 2024 outlook based on our first half performance and the progress we are making executing to our plan. As we near the end of our three-year strategy, we are focusing on maximizing the investments in our upgraded network assets while supporting further expansion at more normalized capex levels supplemented by U.S. government funded infrastructure programs. We believe that our high-speed network expansion and ongoing focus on margin improvement provides a solid foundation for driving strong, sustainable recurring revenues, durable free cash flow, and enhanced shareholder value over the long-term.”
Second Quarter 2024 Financial Results
Consolidated revenues were
Operating income was
Net income attributable to ATN stockholders in the second quarter of 2024 was
Adjusted EBITDA1 increased to
Segment Operating Results (in Thousands)
The Company recorded financial results in three categories: (i) International Telecom; (ii) US Telecom; and (iii) Corporate and Other*.
| For Three Months Ended June 30, 2024 and 2023 | ||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| International | International | US | US | Corporate and | Corporate and | Total | Total | |||||||||||||||||||
| Telecom | Telecom | Telecom | Telecom | Other* | Other* | ATN | ATN | |||||||||||||||||||
| Total Revenue: | $ | 95,357 | $ | 91,981 | $ | 87,924 | $ | 94,460 | $ | - | $ | - | $ | 183,281 | $ | 186,441 | ||||||||||
| Mobility | 26,811 | 26,856 | 769 | 977 | - | - | 27,580 | 27,833 | ||||||||||||||||||
| Fixed | 62,215 | 59,673 | 52,491 | 58,103 | - | - | 114,706 | 117,776 | ||||||||||||||||||
| Carrier Services | 3,636 | 3,879 | 30,056 | 31,576 | - | - | 33,692 | 35,455 | ||||||||||||||||||
| Construction | - | - | 820 | 1,020 | - | - | 820 | 1,020 | ||||||||||||||||||
| All other | 2,695 | 1,573 | 3,788 | 2,784 | - | - | 6,483 | 4,357 | ||||||||||||||||||
| Operating Income (Loss) | $ | 32,405 | $ | 14,552 | $ | 884 | $ | (2,394 | ) | $ | (8,973 | ) | $ | (9,720 | ) | $ | 24,316 | $ | 2,438 | |||||||
| EBITDA** | $ | 48,934 | $ | 29,022 | $ | 21,811 | $ | 21,816 | $ | (8,926 | ) | $ | (9,039 | ) | $ | 61,819 | $ | 41,799 | ||||||||
| Adjusted EBITDA1 | $ | 33,285 | $ | 29,128 | $ | 21,919 | $ | 22,776 | $ | (6,534 | ) | $ | (6,113 | ) | $ | 48,670 | $ | 45,791 | ||||||||
| Capital Expenditures*** | $ | 12,035 | $ | 17,408 | $ | 13,540 | $ | 21,450 | $ | 238 | $ | (5 | ) | $ | 25,813 | $ | 38,853 | |||||||||
| For Six Months Ended June 30, 2024 and 2023 | ||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| International | International | US | US | Corporate and | Corporate and | Total | Total | |||||||||||||||||||
| Telecom | Telecom | Telecom | Telecom | Other* | Other* | ATN | ATN | |||||||||||||||||||
| Total Revenue: | $ | 188,416 | $ | 182,389 | $ | 181,660 | $ | 189,825 | $ | - | $ | - | $ | 370,076 | $ | 372,214 | ||||||||||
| Mobility | 52,848 | 52,963 | 1,606 | 2,136 | - | - | 54,454 | 55,099 | ||||||||||||||||||
| Fixed | 123,536 | 118,563 | 110,376 | 117,004 | - | - | 233,912 | 235,567 | ||||||||||||||||||
| Carrier Services | 7,209 | 7,570 | 60,109 | 63,660 | - | - | 67,318 | 71,230 | ||||||||||||||||||
| Construction | - | - | 2,406 | 1,610 | - | - | 2,406 | 1,610 | ||||||||||||||||||
| All other | 4,823 | 3,293 | 7,163 | 5,415 | - | - | 11,986 | 8,708 | ||||||||||||||||||
| Operating Income (Loss) | $ | 44,090 | $ | 28,377 | $ | 1,482 | $ | (6,737 | ) | $ | (16,682 | ) | $ | (18,566 | ) | $ | 28,890 | $ | 3,074 | |||||||
| EBITDA** | $ | 76,993 | $ | 57,413 | $ | 42,275 | $ | 41,826 | $ | (16,557 | ) | $ | (17,154 | ) | $ | 102,711 | $ | 82,085 | ||||||||
| Adjusted EBITDA1 | $ | 62,558 | $ | 57,586 | $ | 42,622 | $ | 45,583 | $ | (12,992 | ) | $ | (12,581 | ) | $ | 92,188 | $ | 90,588 | ||||||||
| Capital Expenditures*** | $ | 28,951 | $ | 38,906 | $ | 31,299 | $ | 50,584 | $ | 1,579 | $ | (40 | ) | $ | 61,829 | $ | 89,450 | |||||||||
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments.
** See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure
***Excludes government capital program amounts disbursed and amounts received.
ATN’s Strategic Plan and Key Performance Indicators
The Company is half-way through the final year of its three-year strategic plan initiated in 2021 to accelerate investments in its high-speed data footprint and grow high speed broadband subscribers. During this final year of the plan, the Company is reducing capital expenditures to approach more normalized spending levels and plans to augment further network expansion with previously announced and future grant funding.
Operating Metrics
| Operating Metrics | |||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | Q2 2024 | ||||||||||
| Q2 | Q1 | Q4 | Q3 | Q2 | vs. Q2 2023 | ||||||||||
| High-Speed Data* Broadband Homes Passed | 403,500 | 386,300 | 367,200 | 333,500 | 330,500 | 22 | % | ||||||||
| High-Speed Data* Broadband Customers | 141,000 | 137,700 | 135,900 | 132,900 | 129,100 | 9 | % | ||||||||
| Broadband Homes Passed | 803,300 | 789,700 | 768,900 | 746,600 | 746,800 | 8 | % | ||||||||
| Broadband Customers | 212,900 | 214,000 | 214,400 | 213,900 | 215,500 | -1 | % | ||||||||
| Fiber Route Miles | 11,728 | 11,692 | 11,655 | 11,575 | 11,561 | 1 | % | ||||||||
| International Mobile Subscribers | |||||||||||||||
| Pre-Paid | 339,000 | 346,400 | 350,700 | 345,500 | 339,600 | -0 | % | ||||||||
| Post-Paid | 57,900 | 57,300 | 57,000 | 55,600 | 58,600 | -1 | % | ||||||||
| Total | 396,900 | 403,700 | 407,700 | 401,100 | 398,200 | -0 | % | ||||||||
| Blended Churn | 3.44 | % | 3.34 | % | 3.33 | % | 3.76 | % | 2.69 | % | |||||
*High-Speed Data is defined as download speeds 100 Mbps or greater and High-Speed Data Broadband Customers as subscribers connected to our high-speed networks regardless of the speed of plan selected.
Note: Data may differ from prior periods to reflect more accurate data and/or changes in calculation methodology and process.
Balance Sheet and Cash Flow Highlights
Total cash, cash equivalents and restricted cash as of June 30, 2024, was
Net cash provided by operating activities was
Capital expenditures were
Quarterly Dividends and Stock Repurchases
Quarterly dividends of
Share repurchases made by the Company during the second quarter of 2024 totaled
Reaffirms Full-Year 2024 Guidance and Outlook
The Company is reaffirming its guidance and outlook for the full-year ended December 31, 2024, as follows:
| Revenue (excluding construction revenue) | Full-year 2024 | |
| Adjusted EBITDA1 | Full-year 2024 | |
| Capital Expenditures | Full-year 2024 | |
| Net Debt Ratio 3 | 2.25x to 2.50x | Exiting 2024 |
Longer term, the Company continues to prioritize increasing cash flow and driving positive returns through realized efficiencies that leverage ATN’s high-quality network assets. In 2025, the Company expects internally funded capital investments to be in the range of
For the Company’s full-year 2024 outlook for Adjusted EBITDA and Net Debt Ratio, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA and the description of the calculation of Net Debt Ratio.
Conference Call Information
Call Date: Thursday, July 25, 2024
Call Time: 10:00 a.m. ET
Webcast Link: https://edge.media-server.com/mmc/p/x3cd8cb6
Live Call Participant Link: https://register.vevent.com/register/BIbb2582646cf142d1bebb5428692491b1
Webcast Link Instructions
You can listen to a live audio webcast of the conference call by visiting the “Webcast Link” above or the "Events & Presentations" section of the Company's Investor Relations website at https://ir.atni.com/events-and-presentations. A replay of the conference call will be available at the same locations beginning at approximately 1:00 pm ET on the same day. The Company also will provide an investor presentation as a supplement to the call on the “Events & Presentations” section of its Investor Relations website.
About ATN
ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a leading provider of digital infrastructure and communications services for all. The Company operates in the United States and internationally, including the Caribbean region, with a focus on rural and remote markets with a growing demand for infrastructure investments. The Company’s operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential, business, and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and (ii) carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities. For more information, please visit www.atni.com.
Use of Non-GAAP Financial Measures and Definition of Terms
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, Adjusted EBITDA, Net Debt, and Net Debt Ratio in this release and the tables included herein.
EBITDA is defined as Operating income (loss) before depreciation and amortization expense.
Adjusted EBITDA is defined as Operating income (loss) before depreciation and amortization expense, transaction-related charges, restructuring expenses, one-time impairment or special charges, non-cash stock-based compensation, and the gain (loss) on disposition of assets.
Net Debt is defined as total debt less cash and cash equivalents and restricted cash.
Net Debt Ratio is defined as Net Debt divided by the sum of the trailing four quarters Adjusted EBITDA at the measurement date.
The Company believes that the inclusion of these non-GAAP financial measures helps 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.
Cautionary Language Concerning Forward-Looking Statements
This press release contains forward-looking statements relating to, among other matters, the Company’s future financial performance, business goals and objectives, and results of operations, expectations regarding its strategic investment plan, its future revenues, operating income, operating margin, cash flows, network and operating costs, EBITDA, Adjusted EBITDA, Net Debt, Net Debt Ratio, cost management initiatives, and capital investments; demand for the Company’s services and industry trends; the timing of revenue, the Company’s liquidity; the expansion of the Company’s customer base and networks; receipt of certain government grants and management’s plans, expectations 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 the Company’s operations, including operating margins, revenues, capital expenditures, the impact of cost savings initiatives, and the retention of and future growth of the Company’s subscriber base and ARPU; (2) the Company’s reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to the Company’s network infrastructure; (3) the Company’s ability to satisfy the needs and demands of the Company’s major carrier customers; (4) the Company’s ability to realize expansion plans for its fiber markets; (5) the adequacy and expansion capabilities of the Company’s network capacity and customer service system to support the Company’s customer growth; (6) the Company’s ability to efficiently and cost-effectively upgrade the Company’s networks and information technology platforms to address rapid and significant technological changes in the telecommunications industry; (7) the Company’s continued access to capital and credit markets on terms it deems favorable; (8) government subsidy program availability and regulation of the Company’s businesses, which may impact the Company’s telecommunications licenses, the Company’s revenue and the Company’s operating costs; (9) the Company’s ability to successfully transition its US Telecom business away from wholesale mobility to other carrier and consumer-based services; (10) ongoing risk of an economic downturn, political, geopolitical and other risks and opportunities facing the Company’s operations, including those resulting from the continued inflation and other macroeconomic headwinds including increased costs and supply chain disruptions; (11) management transitions, and the loss of, or an inability to recruit skilled personnel in the Company’s various jurisdictions, including key members of management; (12) the Company’s ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (13) the occurrence of weather events and natural catastrophes and the Company’s ability to secure the appropriate level of insurance coverage for these assets; and the impact of such events on the timing of project implementation and corresponding revenue, and (14) increased competition. 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, 2023, filed with the SEC on March 15, 2024, and the other reports the Company files 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.
Contact
| Michele Satrowsky Corporate Treasurer ATN International, Inc. 978-619-1300 | Ian Rhoades Investor Relations Sharon Merrill Advisors, Inc. ATNI@investorrelations.com |
| Table 1 | |||||||
| ATN International, Inc. | |||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||
| (in Thousands) | |||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 58,932 | $ | 49,225 | |||
| Restricted cash | 14,321 | 12,942 | |||||
| Customer receivable | 7,746 | 7,249 | |||||
| Other current assets | 214,897 | 211,856 | |||||
| Total current assets | 295,896 | 281,272 | |||||
| Property, plant and equipment, net | 1,061,322 | 1,080,659 | |||||
| Operating lease right-of-use assets | 97,738 | 99,335 | |||||
| Customer receivable - long term | 43,761 | 45,676 | |||||
| Goodwill and other intangible assets, net | 169,210 | 173,008 | |||||
| Other assets | 104,414 | 103,764 | |||||
| Total assets | $ | 1,772,341 | $ | 1,783,714 | |||
| Liabilities, redeemable non-controlling interests and stockholders’ equity: | |||||||
| Current portion of long-term debt | $ | 16,573 | $ | 24,290 | |||
| Current portion of customer receivable credit facility | 7,659 | 7,110 | |||||
| Taxes payable | 11,994 | 10,876 | |||||
| Current portion of lease liabilities | 15,074 | 15,164 | |||||
| Other current liabilities | 217,585 | 235,754 | |||||
| Total current liabilities | 268,885 | 293,194 | |||||
| Long-term debt, net of current portion | $ | 524,262 | $ | 492,580 | |||
| Customer receivable credit facility, net of current portion | 38,442 | 38,943 | |||||
| Deferred income taxes | 17,754 | 19,775 | |||||
| Lease liabilities | 75,592 | 76,936 | |||||
| Other long-term liabilities | 135,316 | 138,566 | |||||
| Total liabilities | 1,060,251 | 1,059,994 | |||||
| Redeemable non-controlling interests | 83,325 | 85,917 | |||||
| Stockholders' equity: | |||||||
| Total ATN International, Inc.’s stockholders’ equity | 526,771 | 541,073 | |||||
| Non-controlling interests | 101,994 | 96,730 | |||||
| Total stockholders' equity | 628,765 | 637,803 | |||||
| Total liabilities, redeemable non-controlling interests and stockholders’ equity | $ | 1,772,341 | $ | 1,783,714 | |||
| 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, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Communications services | $ | 177,365 | $ | 181,576 | $ | 358,633 | $ | 362,883 | ||||||||||||
| Construction | 820 | 1,020 | 2,406 | 1,610 | ||||||||||||||||
| Other | 5,096 | 3,845 | 9,037 | 7,721 | ||||||||||||||||
| Total revenue | 183,281 | 186,441 | 370,076 | 372,214 | ||||||||||||||||
| Operating expenses (excluding depreciation and amortization unless otherwise indicated): | ||||||||||||||||||||
| Cost of services and other | 76,137 | 77,718 | 156,527 | 156,759 | ||||||||||||||||
| Cost of construction revenue | 813 | 1,016 | 2,382 | 1,604 | ||||||||||||||||
| Selling, general and administrative | 57,661 | 61,914 | 118,979 | 123,262 | ||||||||||||||||
| Stock-based compensation | 2,781 | 2,739 | 4,690 | 4,517 | ||||||||||||||||
| Transaction-related charges | - | 438 | 19 | 451 | ||||||||||||||||
| Restructuring expenses | - | 370 | 1,190 | 3,257 | ||||||||||||||||
| Depreciation | 35,558 | 36,217 | 69,897 | 72,621 | ||||||||||||||||
| Amortization of intangibles from acquisitions | 1,945 | 3,144 | 3,924 | 6,391 | ||||||||||||||||
| (Gain) loss on disposition of assets | (15,930 | ) | 445 | (16,422 | ) | 278 | ||||||||||||||
| Total operating expenses | 158,965 | 184,001 | 341,186 | 369,140 | ||||||||||||||||
| Operating income | 24,316 | 2,440 | 28,890 | 3,074 | ||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest expense, net | (12,196 | ) | (10,404 | ) | (23,271 | ) | (19,029 | ) | ||||||||||||
| Other income (expense) | (579 | ) | 2,216 | (406 | ) | 2,411 | ||||||||||||||
| Other income (expense), net | (12,775 | ) | (8,188 | ) | (23,677 | ) | (16,618 | ) | ||||||||||||
| Income (loss) before income taxes | 11,541 | (5,748 | ) | 5,213 | (13,544 | ) | ||||||||||||||
| Income tax expense (benefit) | 204 | (5,087 | ) | 1,822 | (5,827 | ) | ||||||||||||||
| Net income (loss) | 11,337 | (661 | ) | 3,391 | (7,717 | ) | ||||||||||||||
| Net income (loss) attributable to non-controlling interests, net | (2,334 | ) | 1,428 | (701 | ) | 2,599 | ||||||||||||||
| Net income (loss) attributable to ATN International, Inc. stockholders | $ | 9,003 | $ | 767 | $ | 2,690 | $ | (5,118 | ) | |||||||||||
| Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders: | ||||||||||||||||||||
| Basic | $ | 0.50 | $ | (0.03 | ) | $ | (0.00 | ) | $ | (0.48 | ) | |||||||||
| Diluted | $ | 0.50 | $ | (0.03 | ) | $ | (0.00 | ) | $ | (0.48 | ) | |||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 15,254 | 15,719 | 15,346 | 15,726 | ||||||||||||||||
| Diluted | 15,255 | 15,719 | 15,360 | 15,726 | ||||||||||||||||
| Table 3 | ||||||||
| ATN International, Inc. | ||||||||
| Unaudited Condensed Consolidated Cash Flow Statements | ||||||||
| (in Thousands) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Net income (loss) | $ | 3,391 | $ | (7,717 | ) | |||
| Depreciation | 69,897 | 72,621 | ||||||
| Amortization of intangibles from acquisitions | 3,924 | 6,391 | ||||||
| Provision for doubtful accounts | 2,855 | 2,463 | ||||||
| Amortization of debt discount and debt issuance costs | 1,249 | 1,162 | ||||||
| (Gain) Loss on disposition of assets | (16,422 | ) | 278 | |||||
| Stock-based compensation | 4,690 | 4,517 | ||||||
| Deferred income taxes | (2,550 | ) | (6,616 | ) | ||||
| Loss on pension settlement | - | 369 | ||||||
| Gain on equity investments | (218 | ) | (2,501 | ) | ||||
| Decrease in customer receivable | 1,418 | 1,186 | ||||||
| Change in prepaid and accrued income taxes | 273 | 3,302 | ||||||
| Change in other operating assets and liabilities | (14,975 | ) | (15,126 | ) | ||||
| Net cash provided by operating activities | 53,532 | 60,329 | ||||||
| Capital expenditures | (61,830 | ) | (89,451 | ) | ||||
| Government capital programs: | ||||||||
| Amounts disbursed | (46,198 | ) | (6,986 | ) | ||||
| Amounts received | 48,564 | 593 | ||||||
| Net proceeds from sale of assets | 17,910 | - | ||||||
| Purchases of spectrum licenses and other intangible assets | (573 | ) | - | |||||
| Purchases and sales of investments | 162 | (1,055 | ) | |||||
| Acquisition of business | - | 1,314 | ||||||
| Net cash used in investing activities | (41,965 | ) | (95,585 | ) | ||||
| Dividends paid on common stock | (7,421 | ) | (6,633 | ) | ||||
| Distributions to non-controlling interests | (2,116 | ) | (1,447 | ) | ||||
| Finance lease payments | (915 | ) | (481 | ) | ||||
| Term loan - repayments | (12,112 | ) | (2,335 | ) | ||||
| Payment of debt issuance costs | (974 | ) | (159 | ) | ||||
| Revolving credit facilities – borrowings | 75,000 | 88,273 | ||||||
| Revolving credit facilities – repayments | (40,002 | ) | (26,500 | ) | ||||
| Proceeds from customer receivable credit facility | 3,700 | 4,300 | ||||||
| Repayment of customer receivable credit facility | (3,709 | ) | (3,247 | ) | ||||
| Purchases of common stock - stock-based compensation | (1,932 | ) | (1,433 | ) | ||||
| Purchases of common stock - share repurchase plan | (10,000 | ) | (6,828 | ) | ||||
| Repurchases of non-controlling interests, net | - | (760 | ) | |||||
| Net cash provided by (used in) financing activities | (481 | ) | 42,750 | |||||
| Net change in total cash, cash equivalents and restricted cash | 11,086 | 7,494 | ||||||
| Total cash, cash equivalents and restricted cash, beginning of period | 62,167 | 59,728 | ||||||
| Total cash, cash equivalents and restricted cash, end of period | $ | 73,253 | $ | 67,222 | ||||
| Table 4 | ||||||||||||||
| ATN International, Inc. | ||||||||||||||
| Selected Segment Financial Information | ||||||||||||||
| (In Thousands) | ||||||||||||||
| For the three months ended June 30, 2024 is as follows: | ||||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | |||||||||||
| Statement of Operations Data: | ||||||||||||||
| Revenue | ||||||||||||||
| Mobility | ||||||||||||||
| Business | $ | 4,932 | $ | 68 | $ | - | $ | 5,000 | ||||||
| Consumer | 21,879 | 701 | - | 22,580 | ||||||||||
| Total | $ | 26,811 | $ | 769 | $ | - | $ | 27,580 | ||||||
| Fixed | ||||||||||||||
| Business | $ | 18,715 | $ | 30,817 | $ | - | $ | 49,532 | ||||||
| Consumer | 43,500 | 21,674 | - | 65,174 | ||||||||||
| Total | $ | 62,215 | $ | 52,491 | $ | - | $ | 114,706 | ||||||
| Carrier Services | $ | 3,636 | $ | 30,056 | $ | - | $ | 33,692 | ||||||
| Other | 1,045 | 342 | - | 1,387 | ||||||||||
| Total Communications Services | $ | 93,707 | $ | 83,658 | $ | - | $ | 177,365 | ||||||
| Construction | $ | - | $ | 820 | $ | - | $ | 820 | ||||||
| Managed services | $ | 1,650 | $ | 3,446 | $ | - | $ | 5,096 | ||||||
| Total Other | $ | 1,650 | $ | 3,446 | $ | - | $ | 5,096 | ||||||
| Total Revenue | $ | 95,357 | $ | 87,924 | $ | - | $ | 183,281 | ||||||
| Depreciation | $ | 16,277 | $ | 19,234 | $ | 47 | $ | 35,558 | ||||||
| Amortization of intangibles from acquisitions | $ | 252 | $ | 1,693 | $ | - | $ | 1,945 | ||||||
| Total operating expenses | $ | 62,952 | $ | 87,040 | $ | 8,973 | $ | 158,965 | ||||||
| Operating income (loss) | $ | 32,405 | $ | 884 | $ | (8,973 | ) | $ | 24,316 | |||||
| Net (income) loss attributable to non-controlling interests | $ | (5,137 | ) | $ | 2,803 | $ | - | $ | (2,334 | ) | ||||
| Non GAAP measures: | ||||||||||||||
| EBITDA (2) | $ | 48,934 | $ | 21,811 | $ | (8,926 | ) | $ | 61,819 | |||||
| Adjusted EBITDA (1) | $ | 33,285 | $ | 21,919 | $ | (6,534 | ) | $ | 48,670 | |||||
| Balance Sheet Data (at June 30, 2024): | ||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 33,563 | $ | 36,448 | $ | 3,242 | $ | 73,253 | ||||||
| Total current assets | 130,572 | 155,822 | 9,502 | 295,896 | ||||||||||
| Fixed assets, net | 475,862 | 579,092 | 6,368 | 1,061,322 | ||||||||||
| Total assets | 683,111 | 997,592 | 91,638 | 1,772,341 | ||||||||||
| Total current liabilities | 91,529 | 145,856 | 31,500 | 268,885 | ||||||||||
| Total debt, including current portion | 59,801 | 298,375 | 182,659 | 540,835 | ||||||||||
| * Corporate and Other refer to corporate overhead expenses and consolidating adjustments | ||||||||||||||
| Table 4 (continued) | ||||||||||||||
| ATN International, Inc. | ||||||||||||||
| Selected Segment Financial Information | ||||||||||||||
| (In Thousands) | ||||||||||||||
| For the three months ended June 30, 2023 is as follows: | ||||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | |||||||||||
| Statement of Operations Data: | ||||||||||||||
| Revenue | ||||||||||||||
| Mobility | ||||||||||||||
| Business | $ | 3,507 | $ | 114 | $ | - | $ | 3,621 | ||||||
| Consumer | 23,349 | 863 | - | 24,212 | ||||||||||
| Total | $ | 26,856 | $ | 977 | $ | - | $ | 27,833 | ||||||
| Fixed | ||||||||||||||
| Business | $ | 17,214 | $ | 35,495 | $ | - | $ | 52,709 | ||||||
| Consumer | 42,459 | 22,608 | - | 65,067 | ||||||||||
| Total | $ | 59,673 | $ | 58,103 | $ | - | $ | 117,776 | ||||||
| Carrier Services | $ | 3,879 | $ | 31,576 | $ | - | $ | 35,455 | ||||||
| Other | 448 | 64 | - | 512 | ||||||||||
| Total Communications Services | $ | 90,856 | $ | 90,720 | $ | - | $ | 181,576 | ||||||
| Construction | $ | - | $ | 1,020 | $ | - | $ | 1,020 | ||||||
| Managed services | $ | 1,125 | $ | 2,720 | $ | - | $ | 3,845 | ||||||
| Total Other | $ | 1,125 | $ | 2,720 | $ | - | $ | 3,845 | ||||||
| Total Revenue | $ | 91,981 | $ | 94,460 | $ | - | $ | 186,441 | ||||||
| Depreciation | $ | 14,106 | $ | 21,430 | $ | 681 | $ | 36,217 | ||||||
| Amortization of intangibles from acquisitions | $ | 364 | $ | 2,780 | $ | - | $ | 3,144 | ||||||
| Total operating expenses | $ | 77,429 | $ | 96,854 | $ | 9,720 | $ | 184,003 | ||||||
| Operating income (loss) | $ | 14,552 | $ | (2,394 | ) | $ | (9,720 | ) | $ | 2,438 | ||||
| Net (income) loss attributable to non-controlling interests | $ | (2,050 | ) | $ | 3,478 | $ | - | $ | 1,428 | |||||
| Non GAAP measures: | ||||||||||||||
| EBITDA (2) | $ | 29,022 | $ | 21,816 | $ | (9,039 | ) | $ | 41,799 | |||||
| Adjusted EBITDA (1) | $ | 29,128 | $ | 22,776 | $ | (6,113 | ) | $ | 45,791 | |||||
| (1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||||
| (2) See Table 5 for reconciliation of Operating Income to EBITDA | ||||||||||||||
| * 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, 2024 is as follows: | ||||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | |||||||||||
| Statement of Operations Data: | ||||||||||||||
| Revenue | ||||||||||||||
| Mobility | ||||||||||||||
| Business | $ | 9,740 | $ | 141 | $ | - | $ | 9,881 | ||||||
| Consumer | 43,108 | 1,465 | - | 44,573 | ||||||||||
| Total | $ | 52,848 | $ | 1,606 | $ | - | $ | 54,454 | ||||||
| Fixed | ||||||||||||||
| Business | $ | 37,247 | $ | 65,783 | $ | - | $ | 103,030 | ||||||
| Consumer | 86,289 | 44,593 | - | 130,882 | ||||||||||
| Total | $ | 123,536 | $ | 110,376 | $ | - | $ | 233,912 | ||||||
| Carrier Services | $ | 7,209 | $ | 60,109 | $ | - | $ | 67,318 | ||||||
| Other | 1,863 | 1,086 | - | 2,949 | ||||||||||
| Total Communications Services | $ | 185,456 | $ | 173,177 | $ | - | $ | 358,633 | ||||||
| Construction | $ | - | $ | 2,406 | $ | - | $ | 2,406 | ||||||
| Managed services | $ | 2,960 | $ | 6,077 | $ | - | $ | 9,037 | ||||||
| Total Other | $ | 2,960 | $ | 6,077 | $ | - | $ | 9,037 | ||||||
| Total Revenue | $ | 188,416 | $ | 181,660 | $ | - | $ | 370,076 | ||||||
| Depreciation | $ | 32,400 | $ | 37,372 | $ | 125 | $ | 69,897 | ||||||
| Amortization of intangibles from acquisitions | $ | 503 | $ | 3,421 | $ | - | $ | 3,924 | ||||||
| Total operating expenses | $ | 144,326 | $ | 180,178 | $ | 16,682 | $ | 341,186 | ||||||
| Operating income (loss) | $ | 44,090 | $ | 1,482 | $ | (16,682 | ) | $ | 28,890 | |||||
| Net (income) loss attributable to non-controlling interests | $ | (6,574 | ) | $ | 5,872 | $ | - | $ | (702 | ) | ||||
| Non GAAP measures: | ||||||||||||||
| EBITDA (2) | $ | 76,993 | $ | 42,275 | $ | (16,557 | ) | $ | 102,711 | |||||
| Adjusted EBITDA (1) | $ | 62,558 | $ | 42,622 | $ | (12,992 | ) | $ | 92,188 | |||||
| * Corporate and Other refer to corporate overhead expenses and consolidating adjustments | ||||||||||||||
| Table 4 (continued) | ||||||||||||||
| ATN International, Inc. | ||||||||||||||
| Selected Segment Financial Information | ||||||||||||||
| (In Thousands) | ||||||||||||||
| For the six months ended June 30, 2023 is as follows: | ||||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | |||||||||||
| Statement of Operations Data: | ||||||||||||||
| Revenue | ||||||||||||||
| Mobility | ||||||||||||||
| Business | $ | 7,083 | $ | 286 | $ | - | $ | 7,369 | ||||||
| Consumer | 45,880 | 1,850 | - | 47,730 | ||||||||||
| Total | $ | 52,963 | $ | 2,136 | $ | - | $ | 55,099 | ||||||
| Fixed | ||||||||||||||
| Business | $ | 34,327 | $ | 71,814 | $ | - | $ | 106,141 | ||||||
| Consumer | 84,236 | 45,190 | - | 129,426 | ||||||||||
| Total | $ | 118,563 | $ | 117,004 | $ | - | $ | 235,567 | ||||||
| Carrier Services | $ | 7,570 | $ | 63,660 | $ | - | $ | 71,230 | ||||||
| Other | 848 | 139 | - | 987 | ||||||||||
| Total Communications Services | $ | 179,944 | $ | 182,939 | $ | - | $ | 362,883 | ||||||
| Construction | $ | - | $ | 1,610 | $ | - | $ | 1,610 | ||||||
| Managed services | $ | 2,445 | $ | 5,276 | $ | - | $ | 7,721 | ||||||
| Total Other | $ | 2,445 | $ | 5,276 | $ | - | $ | 7,721 | ||||||
| Total Revenue | $ | 182,389 | $ | 189,825 | $ | - | $ | 372,214 | ||||||
| Depreciation | $ | 28,292 | $ | 42,917 | $ | 1,412 | $ | 72,621 | ||||||
| Amortization of intangibles from acquisitions | $ | 744 | $ | 5,646 | $ | - | $ | 6,390 | ||||||
| Total operating expenses | $ | 154,012 | $ | 196,562 | $ | 18,566 | $ | 369,140 | ||||||
| Operating income (loss) | $ | 28,377 | $ | (6,737 | ) | $ | (18,566 | ) | $ | 3,074 | ||||
| Net (income) loss attributable to non-controlling interests | $ | (3,856 | ) | $ | 6,455 | $ | - | $ | 2,599 | |||||
| Non GAAP measures: | ||||||||||||||
| EBITDA (2) | $ | 57,413 | $ | 41,826 | $ | (17,154 | ) | $ | 82,085 | |||||
| Adjusted EBITDA (1) | $ | 57,586 | $ | 45,583 | $ | (12,581 | ) | $ | 90,588 | |||||
| Balance Sheet Data (at December 31, 2023): | ||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 26,354 | $ | 33,574 | $ | 2,239 | $ | 62,167 | ||||||
| Total current assets | 107,469 | 162,768 | 11,035 | 281,272 | ||||||||||
| Fixed assets, net | 481,911 | 593,833 | 4,915 | 1,080,659 | ||||||||||
| Total assets | 672,171 | 1,019,924 | 91,619 | 1,783,714 | ||||||||||
| Total current liabilities | 86,540 | 169,297 | 37,357 | 293,194 | ||||||||||
| Total debt, including current portion | 64,254 | 293,607 | 159,009 | 516,870 | ||||||||||
| (1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA | ||||||||||||||
| (2) See Table 5 for reconciliation of Operating Income to EBITDA | ||||||||||||||
| * Corporate and Other refer to corporate overhead expenses and consolidating adjustments | ||||||||||||||
| Table 5 | |||||||||||||
| ATN International, Inc. | |||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||
| (In Thousands) | |||||||||||||
| For the three months ended June 30, 2024 is as follows: | |||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | ||||||||||
| Operating income (loss) | $ | 32,405 | $ | 884 | $ | (8,973 | ) | $ | 24,316 | ||||
| Depreciation expense | 16,277 | 19,234 | 47 | 35,558 | |||||||||
| Amortization of intangibles from acquisitions | 252 | 1,693 | - | 1,945 | |||||||||
| EBITDA | $ | 48,934 | $ | 21,811 | $ | (8,926 | ) | $ | 61,819 | ||||
| Stock-based compensation | 193 | 196 | 2,392 | 2,781 | |||||||||
| (Gain) Loss on disposition of assets | (15,842 | ) | (88 | ) | - | (15,930 | ) | ||||||
| ADJUSTED EBITDA | $ | 33,285 | $ | 21,919 | $ | (6,534 | ) | $ | 48,670 | ||||
| For the three months ended June 30, 2023 is as follows: | |||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | ||||||||||
| Operating income (loss) | $ | 14,552 | $ | (2,394 | ) | $ | (9,720 | ) | $ | 2,438 | |||
| Depreciation expense | 14,106 | 21,430 | 681 | 36,217 | |||||||||
| Amortization of intangibles from acquisitions | 364 | 2,780 | - | 3,144 | |||||||||
| EBITDA | $ | 29,022 | $ | 21,816 | $ | (9,039 | ) | $ | 41,799 | ||||
| Stock-based compensation | 109 | 9 | 2,621 | 2,739 | |||||||||
| Restructuring expenses | - | 370 | - | 370 | |||||||||
| Transaction-related charges | - | 133 | 305 | 438 | |||||||||
| (Gain) Loss on disposition of assets | (3 | ) | 448 | - | 445 | ||||||||
| ADJUSTED EBITDA | $ | 29,128 | $ | 22,776 | $ | (6,113 | ) | $ | 45,791 | ||||
| Table 5 (continued) | |||||||||||||
| ATN International, Inc. | |||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||
| (In Thousands) | |||||||||||||
| For the six months ended June 30, 2024 is as follows: | |||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | ||||||||||
| Operating income (loss) | $ | 44,090 | $ | 1,482 | $ | (16,682 | ) | $ | 28,890 | ||||
| Depreciation expense | 32,400 | 37,372 | 125 | 69,897 | |||||||||
| Amortization of intangibles from acquisitions | 503 | 3,421 | - | 3,924 | |||||||||
| EBITDA | $ | 76,993 | $ | 42,275 | $ | (16,557 | ) | $ | 102,711 | ||||
| Stock-based compensation | 217 | 327 | 4,146 | 4,690 | |||||||||
| Restructuring expenses | 1,190 | - | - | 1,190 | |||||||||
| Transaction-related charges | - | - | 19 | 19 | |||||||||
| (Gain) Loss on disposition of assets | (15,842 | ) | 20 | (600 | ) | (16,422 | ) | ||||||
| ADJUSTED EBITDA | $ | 62,558 | $ | 42,622 | $ | (12,992 | ) | $ | 92,188 | ||||
| For the six months ended June 30, 2023 is as follows: | |||||||||||||
| International Telecom | US Telecom | Corporate and Other * | Total | ||||||||||
| Operating income (loss) | $ | 28,377 | $ | (6,737 | ) | $ | (18,566 | ) | $ | 3,074 | |||
| Depreciation expense | 28,292 | 42,917 | 1,412 | 72,621 | |||||||||
| Amortization of intangibles from acquisitions | 744 | 5,646 | - | 6,390 | |||||||||
| EBITDA | $ | 57,413 | $ | 41,826 | $ | (17,154 | ) | $ | 82,085 | ||||
| Stock-based compensation | 176 | 86 | 4,255 | 4,517 | |||||||||
| Restructuring expenses | - | 3,257 | - | 3,257 | |||||||||
| Transaction-related charges | - | 133 | 318 | 451 | |||||||||
| (Gain) Loss on disposition of assets | (3 | ) | 281 | - | 278 | ||||||||
| ADJUSTED EBITDA | $ | 57,586 | $ | 45,583 | $ | (12,581 | ) | $ | 90,588 | ||||
| Table 6 | ||||||||||||
| ATN International, Inc. | ||||||||||||
| Non GAAP Measure - Net Debt Ratio | ||||||||||||
| (in Thousands) | ||||||||||||
| June 30, | December 31, | |||||||||||
| 2024 | 2023 | |||||||||||
| Current portion of long-term debt * | $ | 16,573 | $ | 24,290 | ||||||||
| Long-term debt, net of current portion * | 524,262 | 492,580 | ||||||||||
| Total debt | $ | 540,835 | $ | 516,870 | ||||||||
| Less: Cash, cash equivalents and restricted cash | 73,253 | 62,167 | ||||||||||
| Net Debt | $ | 467,582 | $ | 454,703 | ||||||||
| Adjusted EBITDA - for the four quarters ended | $ | 191,050 | $ | 189,451 | ||||||||
| Net Debt Ratio | 2.45 | 2.40 | ||||||||||
| * Excludes Customer receivable credit facility | ||||||||||||
1 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.
2 For the Company’s Adjusted EBITDA Guidance, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measure or reconciliations to such GAAP financial measure, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA
3 Please see “Use of Non-GAAP Financial Measures” below for a full definition of Net Debt Ratio.
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