Bay Street News

ATN Reports Second Quarter 2024 Results; Reiterates Full-Year 2024 Outlook

Leveraging “First-to-Fiber” and “Glass & Steel™” Strategic Investments to Deliver Growth in High-Speed Data Subscribers and Network Reach   

International Telecom Segment Growth and Cost Management Benefit Q2 2024 Results

Reaffirms 2024 Outlook
The Company reiterated expectations for full-year 2024 with:

Earnings Conference Call

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 6%, delivered International Telecom segment top-line and Adjusted EBITDA growth, and benefited from our cost management efforts. Our US Telecom segment’s performance was in line with our expectations, reflecting the impact of the expiration of the ECF program, as previously signaled.″

“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 $183.3 million, down 2% versus $186.4 million in the year-ago quarter. This decrease primarily reflects the impact of the end of the ECF program in the US Telecom segment, which offset the increase in fixed revenues in the International Telecom segment.

Operating income was $24.3 million in the second quarter versus $2.4 million in the year-ago quarter. The increase in operating income was primarily due to a $15.9 million gain on the disposition of a non-core asset, a $4.3 million reduction in year-over-year selling, general and administrative expenses, and a $1.9 million reduction in depreciation and amortization expense.

Net income attributable to ATN stockholders in the second quarter of 2024 was $9.0 million, or income of $0.50 per diluted share compared with a net income attributable to ATN stockholders of $0.8 million, or $(0.03) loss per share, in the year-ago quarter. The increase year-over-year was the result of an increase in operating income, which more than offset the increase in interest expense. In all periods, the income or loss per share calculation includes the impact of preferred dividends that are not included in the net income (loss) calculation.

Adjusted EBITDA1 increased to $48.7 million in the second quarter of 2024 from $45.8 million in the year-ago quarter due to lower operating expenses, which more than offset the decrease in revenue.

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 $73.3 million and total debt was $540.8 million, versus $67.2 million of cash, cash equivalents and restricted cash and $482.1 million of total debt at the end of the year-ago quarter.

Net cash provided by operating activities was $53.5 million for the six months ended June 30, 2024, compared with net cash provided by operating activities of $60.3 million in the prior year period.   

Capital expenditures were $61.8 million net of $46.2 million of reimbursable capital expenditures for the six months ended June 30, 2024, versus $89.5 million, net of $7.0 million of reimbursable capital expenditures in the prior year period.

Quarterly Dividends and Stock Repurchases

Quarterly dividends of $0.24 per share were paid on July 10, 2024, on all common shares outstanding to stockholders of record as of June 30, 2024.

Share repurchases made by the Company during the second quarter of 2024 totaled $9.9 million. There is $15 million remaining under the share repurchase program authorized in December 2023.

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) $730 million to $750 million Full-year 2024
Adjusted EBITDA1 $190 million to $200 million Full-year 2024
Capital Expenditures $100 million to $110 million 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 10% to 15% of revenues.

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 Linkhttps://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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