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CST: 21/05/2019 04:27:26   

ATN Reports Fourth Quarter and Full Year 2018 Results

89 Days ago

Fourth Quarter Results

  • International Telecom Operations Showed Positive Comparisons in Key Markets
  • U.S. Telecom Comparisons Reflected Continued Effect of Lower Wholesale Revenue and Impact of Asset Sale, Expiration of certain Federal Subsidies, and Early Stage Business Expenses

Cash Flow from Operating Activities was $116 Million for Full Year 2018

BEVERLY, Mass., Feb. 20, 2019 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the fourth quarter and full year ended December 31, 2018.

Business Review and Outlook

“Results for the fourth quarter were mixed, with our International Telecom operations performing well, and our U.S. Telecom operations managing through difficult market conditions,” noted Michael Prior, Chief Executive Officer.

“Our International Telecom segment experienced strong revenue and Adjusted EBITDAgrowth, reflecting market share gains and progress in achieving operating efficiencies, and the slow but steady recovery of our U.S. Virgin Islands business following the 2017 hurricanes. Investments in network upgrades and fiber to the home programs have improved our subscriber metrics and revenue and strengthened our competitive position in key markets heading into 2019.

“As anticipated, the decline in fourth quarter Adjusted EBITDA1 for our U.S. Telecom segment from last year was more pronounced than in prior periods, with close to one-half of the reduction due to the sale of 100 wholesale sites, the end of FCC Mobility Fund I program subsidies, and higher expenses relating to our early stage business investments. The other factor causing the year-on-year Adjusted EBITDA1 decline was a further decrease in wholesale wireless revenue, which has led to lower segment margins over the last several quarters. In 2018, we reduced our domestic capital expenditures by 40% to improve returns, and we continue to discuss additional ways to utilize our network and operational capabilities with our large carrier customers. In October 2018, we were notified that we were awarded $80 million in funding over the next 10 years as part of the Connect America Fund II program to bring fixed wireless broadband and voice services to rural areas in the U.S. in or around our existing mobile network operating footprint.  We expect this funding to begin to benefit our U.S. Telecom segment results starting in the second half of this year.

“While 2018 brought challenges for ATN, there were several accomplishments worth noting. We succeeded in producing a consolidated adjusted EBITDA margin2 of 28% for the full year despite the headwinds of re-building our network in the USVI and of adapting to lower returns in our domestic wireless business; we produced higher year-on-year  revenue and expanded margins in all of our major International Telecom businesses, and completed multiple major network builds in those markets;  we made  two early stage greenfield infrastructure investments, that we believe offer significant growth potential; and, we completed an opportunistic sale of our U.S. solar operations, that enabled us to capture an attractive return on an investment we made four years earlier.  Looking ahead, our priorities for 2019 include generating momentum behind one or more of our U.S. Telecom growth initiatives, accelerating the business recovery in the US Virgin Islands, and delivering an increase in total cash flow from our International Telecom segment,” Mr. Prior concluded.

Fourth Quarter and Full Year 2018 Financial Results

Fourth quarter 2018 revenues of $107.8 million were similar to 2017 levels of $107.7 million.  The $11.1 million or 17% increase in International Telecom revenues offset a $10.0 million or 29% decline in U.S. Telecom revenues, of which approximately 60% of the decline was due to lower wholesale roaming traffic and the remaining 40% reflects several transactional items that were not comparable on a year-on-year basis.  Adjusted EBITDA1 for the fourth quarter of 2018 was $23.4 million, or 24% below the prior year period, primarily due to the revenue declines in the U.S. Telecom segment. Operating income for the fourth quarter was $10.3 million, which included a net gain of $10.9 million mostly from the sale of the Company’s U.S. solar portfolio. In last year’s fourth quarter, operating income was $41.5 million, inclusive of the net benefit of $32.6 million in insurance recoveries from the 2017 hurricanes in the U.S. Virgin Islands.  Net income attributable to ATN’s stockholders for the fourth quarter was $1.1 million, or $0.07 per diluted share compared with the prior year period’s $43.5 million or $2.71 per diluted share.   

Revenues for the full year 2018 were $451.2 million, 6% below the $481.2 million reported for the full year 2017.   Adjusted EBITDA1 for the full year 2018 was $124.2 million, a decrease of 16% from the prior year.  Operating income for the full year 2018 was $61.0 million, which included $26.4 million in net gains on the sales of certain wholesale wireless assets in the U.S. and the Company’s U.S. solar portfolio. In 2017, operating income was $55.3 million, which included $4.0 million of net losses from damaged assets and other hurricane-related charges, net of insurance recovery.  Net income attributable to ATN stockholders for the full year 2018 was $19.8 million or $1.24 per diluted share, compared with the prior year’s $31.5 million or $1.94 per diluted share.

Fourth Quarter 2018 Operating Highlights

The Company has three reportable segments: (i) U.S. Telecom; (ii) International Telecom; and (iii) Renewable Energy.  

Segment Results
  Three Months Ended December 31, 2018 (in Thousands)
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 24,888 $ 78,033 $ 4,885 $ - $ 107,806
Adjusted EBITDA1 $ 6,467 $ 20,645 $ 2,948 $ (6,704) $ 23,356
Operating Income $ 973 $ 7,572 $ 9,753 $ (7,980) $ 10,318
  Full Year Ended December 31, 2018 (in Thousands)
Annual Capital Expenditures $ 13,389 $ 160,013 $ 4,515 $ 8,004 $ 185,921
  Three Months Ended December 31, 2017 (in Thousands)
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 34,844 $ 66,931 $ 5,927 $ - $ 107,702
Adjusted EBITDA1 $ 16,793 $ 16,748 $ 3,637 $ (6,400) $ 30,778
Operating Income $ 10,798 $ 36,316 $ 1,910 $ (7,544) $ 41,480
   
  Full Year Ended December 31, 2017 (in Thousands)
Annual Capital Expenditures $ 22,230 $ 80,912 $ 32,728 $ 6,501 $ 142,371

U.S. Telecom

U.S. Telecom revenues consist mainly of wireless revenues from our voice and data wholesale roaming operations and our smaller retail operations in the Southwestern United States, as well as enterprise and wholesale wireline revenues.  The decline in U.S. Telecom segment revenues reflected a 29% revenue decline in U.S. wireless revenues to $23.1 million, primarily due to the lower wholesale roaming traffic, and the completion of the sale of approximately 100 wholesale wireless cell sites early in the third quarter of 2018.  In addition to these factors, the decline in U.S. Telecom Adjusted EBITDA1  was due to the completion of our Mobility Fund I program obligation and cessation of the related expense offsets and the additional operating costs related to early stage business investments made in 2018.

International Telecom

International Telecom consists of a broad range of information and communications services including wireline and wireless data, internet, voice and video service revenues from our operations in Bermuda and the Caribbean.  International Telecom revenues increased 17% year-on-year mainly due to broadband and wireless revenues increases in several of our businesses.  This includes the U.S. Virgin Islands, where we continued to recover from the 2017 hurricanes.  While we expect continued sequential revenue improvement in 2019, exclusive of the additional non-recurring FCC support received in 2018, the level of damage to the U.S. Virgin Islands economy, coupled with losses due to accelerated “cord cutting” and alternative offerings, may impact our ability to fully return to pre-storm levels in that market.  During 2018, we made substantial investments in re-building our USVI network with expanded resiliency and capabilities. International Telecom Adjusted EBITDA1 increased 23% primarily as a result of higher revenues in several of our markets alongside improving cost containment.

Renewable Energy

Renewable Energy segment revenues are principally the result of the generation and sale of energy and solar renewable energy credits from our commercial solar projects in India, and the United States.  During the fourth quarter of 2018, ATN completed the sale of its United States portfolio of solar projects, which produced a gain on sale of $12.5 million. As a result, the operating results of these projects are reflected only through November 8, 2018, which caused the year-on-year declines in revenues and Adjusted EBITDA1. Year-on-year revenue and Adjusted EBITDA1 comparisons for this segment will be negative for most of 2019 as a result of this transaction.

Balance Sheet and Cash Flow Highlights

Total cash at December 31, 2018 was $192.9 million.  Additionally, the Company ended the fourth quarter with $0.4 million in short-term investments.  Net cash provided by operating activities was $115.9 million for the full year 2018, compared with $145.7 million for the prior year period.  The decrease in net cash provided by operating activities was primarily due to lower Adjusted EBITDA1 in the U.S. Telecom segment partially offset by increases in the International Telecom segment.  For full year 2018, the Company used net cash of $142.6 million for investing and financing activities.  This included $80.2 million of capital expenditures for network repairs and resiliency enhancements to the network following the 2017 hurricanes in the U.S. Virgin Islands which were partially offset by $34.6 million of insurance proceeds, $105.8 million in other capital expenditures and $18.8 million in partner distributions.   Partially offsetting these expenditures was the $48.3 million of net proceeds (excluding escrow amounts) from the sale of solar assets in the United States.  Management currently estimates International Telecom capital expenditures will be between $50.0 million to $55.0 million in 2019, and approximately $100.0 million lower than 2018.  In the U.S. Telecom segment, we expect capital expenditures to be similar to 2018 levels excluding new initiatives and early stage business spending.      

Conference Call Information

ATN will host a conference call on Thursday, February 21, 2019 at 9:30 a.m. Eastern Time (ET) to discuss its fourth quarter 2018 results. 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 6978317. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on February 21, 2019.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, invests in and operates communications, energy and technology businesses in the United States and internationally, including the Caribbean region and Asia-Pacific, with a particular focus on markets with a need for significant infrastructure investments and improvements. Our operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, high speed internet services, video services and local exchange services, (ii) distributed solar electric power to corporate and government customers and (iii) wholesale communications infrastructure services such as terrestrial and submarine fiber optic transport, communications tower facilities, managed mobile networks, and in-building systems. For more information, please visit www.atni.com.

Cautionary Language Concerning Forward Looking Statements

This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations; the competitive environment in our key markets, demand for our services and industry trends; our growth opportunities; our priorities for 2019; the pace of expansion and improvement of our telecommunications network and renewable energy operations including our level of estimated future capital expenditures and our realization of the benefits of these investments; our future financial expectations; the estimated timeline for an increase in revenues from our customers in the U.S. Virgin Islands following the hurricanes; our ability and timing to receive financial support from the government for our rebuild in the U.S. Virgin Islands and the timing of such support; the anticipated timing of our build schedule and energy production of our India renewable energy projects; and management’s plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results.  Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others,  (1) the general performance of our operations, including operating margins, revenues, capital expenditures, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power;  (2) our ability to maintain favorable roaming arrangements and satisfy the needs and demands of our major wireless customers; (3) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (4) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables businesses; (5) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (6) our ability to restore our networks and customer services in the U.S. Virgin Islands, including obtaining government or other support necessary to do so; (7) economic, political and other risks facing our operations; (8) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (9) our ability to expand our renewable energy business; (10) our ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (11) the occurrence of weather events and natural catastrophes; (12) increased competition;  (13) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (14) our continued access to capital and credit markets; and (15) the risk of currency fluctuation for those markets in which we operate.  These and other additional factors that may cause actual future events and results to differ materially from the events and results indicated in the forward-looking statements above are set forth more fully under Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018 and the other reports we file from time to time with the SEC.  The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors that may affect such forward-looking statements, except as required by law.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has presented the following measures in this release and in the tables included herein:  Adjusted EBITDA; Adjusted EBITDA margin; Operating Income excluding hurricane charges; Net income (loss) attributable to ATN’s stockholders excluding hurricane charges; and Net income (loss) per share attributable to ATN stockholders excluding hurricane charges. 

Adjusted EBITDA is defined as net income attributable to ATN stockholders before (gain) loss on disposition of long-lived assets, restructuring charges, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, loss on damaged assets and other hurricane charges, net of insurance recovery and net income attributable to non-controlling interests. 

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Total revenue.

Operating Income excluding hurricane charges is defined as Operating Income (Loss) adjusted for loss on damaged assets and other hurricane related charges.  Net income (loss) attributable to ATN stockholders excluding hurricane charges is defined as Net income (loss) attributable to ATN stockholders adjusted for loss on damaged assets and other hurricane related charges. 

Net income (loss) per share attributable to ATN stockholders excluding hurricane charges is defined as net income (loss) per share attributable to ATN stockholders adjusted for loss on damaged assets and other hurricane related charges. 

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. ATN’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial 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 used in this press release to the most directly comparable GAAP financial measure is set forth in the text of, and the accompanying tables to, this press release.  While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.

________________________

1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.
2 See Table 5 for reconciliation of Net Income Margin to Adjusted EBITDA Margin.

 

     
  Table 1  
  ATN International, Inc.  
  Unaudited Condensed Consolidated Balance Sheets  
  (in Thousands)  
                 
        December 31,     December 31,  
      2018   2017  
  Assets:              
  Cash and cash equivalents   $ 191,836   $ 207,956  
  Restricted cash     1,071     833  
  Short-term investments     393     7,076  
  Other current assets     82,465     127,063  
                 
  Total current assets     275,765     342,928  
                 
  Long-term restricted cash     -     11,101  
  Property, plant and equipment, net     626,852     643,146  
  Goodwill and other intangible assets, net     166,979     171,656  
  Other assets     37,708     36,774  
                 
  Total assets   $ 1,107,304   $ 1,205,605  
                 
  Liabilities and Stockholders’ Equity:              
  Current portion of long-term debt   $ 4,688   $ 10,919  
  Taxes payable     28,695     6,751  
  Other current liabilities     107,267     144,035  
                 
  Total current liabilities     140,650     161,705  
                 
  Long-term debt, net of current portion   $ 86,294   $ 144,873  
  Deferred income taxes     10,276     31,732  
  Other long-term liabilities     46,760     37,072  
                 
  Total long-term liabilities     143,330     213,677  
                 
  Total liabilities     283,980     375,382  
                 
  Total ATN International, Inc.’s stockholders’ equity     695,387     688,727  
  Non-controlling interests     127,937     141,496  
                 
  Total equity     823,324     830,223  
                 
  Total liabilities and stockholders’ equity   $ 1,107,304   $ 1,205,605  
                 


                         
                      Table 2  
  ATN International, Inc.  
  Unaudited Condensed Consolidated Statements of Operations  
  (in Thousands, Except per Share Data)  
                       
        Three Months Ended     Year Ended  
      December 31,     December 31,  
        2018   2017     2018   2017  
  Revenues:                      
  Wireless   $ 45,778   $ 56,725     $ 198,824   $ 232,501  
  Wireline   57,143   45,050     230,225   227,827  
  Renewable energy   4,885   5,927     22,158   20,865  
  Total revenue   107,806   107,702     451,207   481,193  
                       
  Operating expenses:                    
  Termination and access fees   30,441   26,146     114,478   120,624  
  Engineering and operations   18,292   16,733     73,031   74,614  
  Sales, marketing and customer service   9,238   9,008     35,207   35,184  
  General and administrative   26,479   25,037     104,267   102,294  
  Transaction-related charges   2,000   123     2,642   1,009  
  Restructuring charges     752   1,169     515   1,169  
  Depreciation and amortization     21,117   21,028     85,719   86,934  
  (Gain) Loss on disposition of assets     (10,916)   (412)     (26,425)   101  
  Loss on damaged assets and other hurricane related                      
  charges, net of insurance recovery   85   (32,610)     750   3,956  
  Total operating expenses   97,488   66,222     390,184   425,885  
                       
  Operating income   10,318   41,480     61,023   55,308  
                       
  Other income (expense):                    
  Interest expense, net   (823)   (1,880)     (6,162)   (7,225)  
  Loss on deconsolidation of subsidiary   -   -     -   (529)  
  Other income (expense)   1,841   1,590     (1,119)   (1)  
  Other income (expense), net   1,018   (290)     (7,281)   (7,755)  
                       
  Income before income taxes   11,336   41,190     53,742   47,553  
  Income tax expense (benefit)   5,851   (6,180)     18,870   (1,341)  
                       
  Net Income   5,485   47,370     34,872   48,894  
                         
  Net income attributable to non-controlling interests, net   (4,352)   (3,871)     (15,057)   (17,406)  
                         
  Net Income attributable to ATN International, Inc. stockholders   $ 1,133   $ 43,499     $ 19,815   $ 31,488  
                       
  Net income per weighted average share attributable to ATN International, Inc. stockholders:                      
                         
  Basic Net Income     $ 0.07   $ 2.71     $ 1.24   $ 1.95  
                       
                       
  Diluted Net Income   $ 0.07   $ 2.71     $ 1.24   $ 1.94  
                       
  Weighted average common shares outstanding:                    
  Basic     15,981   16,023     15,988   16,138  
  Diluted     16,025   16,073     16,042   16,210  
                         


     
  Table 3  
  ATN International, Inc.  
  Unaudited Condensed Consolidated Cash Flow Statement  
  (in Thousands)  
       
    Year Ended December 31,  
    2018   2017  
           
    Net income $   34,872   $   48,894  
    Depreciation and amortization   85,719     86,934  
    Provision for doubtful accounts   5,134     3,993  
    (Gain) Loss on disposition of assets   (26,425)     101  
    Loss on deconsolidation of subsidiary   -      529  
    Stock-based compensation   6,420     6,977  
    Loss on damaged assets and other hurricane related charges   -      35,443  
    Insurance recovery related to hurricane claims   -      (34,606)  
    Loss in equity method investments   -      2,033  
    (Gain) loss on sale of investments   -      (826)  
    Deferred income taxes   (23,242)     (13,505)  
    Change in prepaid and accrued income taxes   29,136     (389)  
    Change in other operating assets and liabilities   1,838     10,262  
    Other non-cash activity   2,413     (115)  
           
    Net cash provided by operating activities   115,865     145,725  
           
    Capital expenditures   (105,769)     (133,786)  
    Hurricane rebuild capital expenditures   (80,152)     (8,585)  
    Hurricane insurance proceeds   34,606     -   
    Acquisition of businesses   -      (1,183)  
    Sales of businesses, net of transferred cash of $11.5 and $2.1 million   48,270     22,381  
    Purchases of spectrum licenses and other intangible assets, including deposits   -      (36,832)  
    Net proceeds from sale of assets   6,900     -   
    Strategic investments   (3,000)     (18,107)  
    Proceeds from sale of investments   -      3,794  
    Sale of short term investments   6,564     -   
    Purchase of securities   (138)     -   
    Government grants   5,400     -   
           
           
    Net cash used in investing activities   (87,319)     (172,318)  
           
    Dividends paid on common stock   (10,866)     (19,227)  
    Distributions to non-controlling interests   (18,780)     (6,858)  
    Principal repayments of term loan   (9,795)     (9,355)  
    Proceeds from new borrowings   -      8,571  
    Purchases of common stock   (6,198)     (12,855)  
    Repurchases of non-controlling interests   (9,663)     (2,025)  
    Other   72     (352)  
           
    Net cash used in financing activities   (55,230)     (42,101)  
           
  Effect of foreign currency exchange rates on total cash   (299)     226  
           
  Net change in total cash   (26,983)     (68,468)  
           
  Total cash, cash equivalents and restricted cash, beginning of period   219,890     288,358  
           
  Total cash, cash equivalents and restricted cash, end of period $   192,907   $   219,890  
           


            Table 4
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the three months ended December 31, 2018 is as follows:
             
    U.S.  
Telecom  
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $   23,110 $   22,668  $  $ $   45,778
  Wireline   1,778   55,365   -      57,143
  Renewable Energy   -    -    4,885     4,885
  Total Revenue $   24,888 $   78,033 $   4,885  $ $   107,806
             
  Operating Income (Loss) $   973 $   7,572 $   9,753 $   (7,980) $   10,318
  Non-controlling interest ( net income or (loss) ) $   (414) $   (2,544) $   (1,394)  $  -  $   (4,352)
             
  Non GAAP measure:          
  Adjusted EBITDA (1) $   6,467 $   20,645 $   2,948 $   (6,704) $   23,356
             
  Balance Sheet Data (at December 31, 2018):          
  Cash, cash equivalents and investments $   19,118 $   32,390 $   62,678 $   78,043 $   192,229
  Total current assets   36,801   75,304   80,553   83,107   275,765
  Fixed assets, net   78,102   482,770   45,599   20,381   626,852
  Total assets   172,634   622,454   130,427   181,789   1,107,304
  Total current liabilities   15,783   82,575   3,465   38,827   140,650
  Total debt   -    90,970   12   -    90,982
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the three months ended December 31, 2017 is as follows:
             
    U.S.  
Telecom  
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $   32,631 $   24,094  $  $ $   56,725
  Wireline   2,213   42,837       45,050
  Renewable Energy   -    -    5,927     5,927
  Total Revenue $   34,844 $   66,931 $   5,927  $ $   107,702
             
  Operating Income (Loss) $   10,798 $   36,316 $   1,910 $   (7,544) $   41,480
  Non-controlling interest ( net income or (loss) ) $   (1,679) $   (1,902) $   (290)  $  -  $   (3,871)
             
  Non GAAP measure:          
  Adjusted EBITDA (1) $   16,793 $   16,748 $   3,637 $   (6,400) $   30,778
             
  Balance Sheet Data (at December 31, 2017):          
  Cash, cash equivalents and investments $   19,585 $   110,700 $   8,120 $   76,627 $   215,032
  Total current assets   40,975   190,396   18,060   93,497   342,928
  Fixed assets, net   99,462   367,485   158,447   17,752   643,146
  Total assets   200,142   629,007   192,406   184,050   1,205,605
  Total current liabilities   41,248   91,887   14,754   13,816   161,705
  Total debt   -    94,577   61,215   -    155,792
             
  (1) See Table 5 for reconciliation of Net Income to Adjusted EBITDA        
  *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments    
             
             
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the year ended December 31, 2018 is as follows:
             
    U.S.  
Telecom  
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $   108,878 $   89,946  $  $ $   198,824
  Wireline   6,602   223,623       230,225
  Renewable Energy   -    -    22,158     22,158
  Total Revenue $   115,480 $   313,569 $   22,158  $ $   451,207
             
  Operating Income (Loss) $   36,813 $   45,022 $   13,440 $   (34,252) $   61,023
  Non-controlling interest ( net income or (loss) ) $   (3,183) $   (9,753) $   (2,121)  $  -  $   (15,057)
             
  Non GAAP measure:          
  Adjusted EBITDA (1) $   44,676 $   94,463 $   13,639 $   (28,554) $   124,224
             
  Statement of Cash Flow Data:          
  Capital expenditures $   13,389 $   160,013 $   4,515 $   8,004 $   185,921
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the year ended December 31, 2017 is as follows:
             
    U.S.
Telecom  
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $   143,028 $   89,473  $  $ $   232,501
  Wireline   12,695   215,132       227,827
  Renewable Energy   -    -    20,865     20,865
  Total Revenue $   155,723 $   304,605 $   20,865  $ $   481,193
             
  Operating Income (Loss) $   55,317 $   28,308 $   5,179 $   (33,496) $   55,308
  Non-controlling interest ( net income or (loss) ) $   (7,100) $   (9,178) $   (1,128)  $ $   (17,406)
             
  Non GAAP measure:          
  Adjusted EBITDA (1) $   81,049 $   83,696 $   11,847 $   (28,115) $   148,477
             
  Statement of Cash Flow Data:          
  Capital expenditures $   22,230 $   80,912 $   32,728 $   6,501 $   142,371
             
             
  (1) See Table 5 for reconciliation of Net Income to Adjusted EBITDA
  *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
             
             
             
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
    Quarter ended
    December 31, March 31, June 30, September 30, December 31,
    2017 2018 2018 2018 2018
             
  U.S. Telecom Operational Data:          
  Wireless - Total Domestic Base Stations   1,100   1,122   1,121   1,035   1,045
             
             
  International Telecom Operational Data:          
  Wireline - Voice / Access lines*   162,600   165,100   167,900   170,400   171,100
  Wireline - Data Subscribers*   109,600   112,000   114,900   116,800   119,800
  Wireline - Video Subscribers   47,300   46,200   45,000   43,600   41,700
  Wireless - Subscribers*   308,100   310,000   308,700   300,500   300,400
             
  * Subscriber counts were adjusted for all periods presented based upon a change in methodology
             


          Table 5        
ATN International, Inc.    
Reconciliation of Non-GAAP Measures    
(In Thousands)    
                   
                   
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended December 31, 2018 and 2017        
                   
Three Months Ended December 31, 2018                            
  U.S.
Telecom  
 
International
Telecom
 
Renewable
Energy

Corporate and Other *
Total
       
       
                   
Net income attributable to ATN International, Inc. stockholders         $   1,133        
Net income attributable to non-controlling interests, net of tax           4,352        
Income tax expense           5,851        
Other (income) expense, net           (1,841)        
Interest expense, net           823        
Operating income $   973 $   7,572 $   9,753 $   (7,980) $   10,318        
Depreciation and amortization   5,602   12,983   1,097   1,435   21,117        
Restructuring charges   -    -    752   -    752        
(Gain) Loss on disposition of assets   (134)   5   (10,787)   -    (10,916)        
Loss on damaged assets and other hurricane related charges , net of insurance recovery   -    85   -    -    85        
Transaction-related charges   26   -    2,133   (159)   2,000        
Adjusted EBITDA  $   6,467 $   20,645 $   2,948 $   (6,704) $   23,356        
                   
                   
                   
                   
Three Months Ended December 31, 2017
       
  U.S.
Telecom
 
  Corporate and
Other *

Total
   
  International
Telecom


Renewable
Energy
     
                   
Net Income (loss) attributable to ATN International, Inc. stockholders         $   43,499        
Net income attributable to non-controlling interests, net of tax           3,871        
Income tax benefit           (6,180)        
Other expense, net           (1,590)        
Interest expense, net           1,880        
Operating income $   10,798 $   36,316 $   1,910 $   (7,544) $   41,480        
Depreciation and amortization   6,502   11,669   1,727   1,130   21,028        
(Gain) Loss on disposition of assets   (507)   95   -    -    (412)        
Loss on damaged assets and other hurricane related charges, net of insurance recovery   -    (32,610)   -    -    (32,610)        
Restructuring charges   -    1,169   -    -    1,169        
Transaction-related charges   -    109   -    14   123        
Adjusted EBITDA  $   16,793 $   16,748 $   3,637 $   (6,400) $   30,778        
                   
                   
                   
                   
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments  
                   
                   
Reconciliation of Net Income to Adjusted EBITDA For the Year Ended December 31, 2018 and 2017 and Net Income Margin to Adjusted EBITDA Margin for the Year Ended December 31, 2018  
                   
                   
Year Ended December 31, 2018                            
  Reconciliation of Net Income to Adjusted EBITDA
  Reconciliation of Net Income Margin to Adjusted EBITDA Margin
 
  U.S.  
Telecom
    Renewable
Energy

Corporate and
Other *

Total
       
  International
Telecom
    Total        
                   
Total revenue               $   451,207  
Net income attributable to ATN International, Inc. stockholders         $   19,815   Net income margin 4%  
Net income attributable to non-controlling interests, net of tax           15,057     3%  
Income tax expense           18,870     4%  
Other (income) expense, net           1,119     0%  
Interest expense, net           6,162     1%  
Operating income $   36,813 $   45,022 $   13,440 $   (34,252) $   61,023   Operating income margin 14%  
Depreciation and amortization   24,615   48,889   6,589   5,625   85,718     19%  
Restructuring charges   -    (236)   752   -    516     0%  
(Gain) Loss on disposition of assets   (17,188)   38   (9,275)   -    (26,425)     -6%  
Loss on damaged assets and other hurricane related charges , net of insurance recovery   -    750   -    -    750     0%  
Transaction-related charges   436   -    2,133   73   2,642     1%  
Adjusted EBITDA  $   44,676 $   94,463 $   13,639 $   (28,554) $   124,224   Adjusted EBITDA margin 28%  
                   
                   
                   
                   
Year Ended December 31, 2017                            
  U.S.
Telecom
International
Telecom

Renewable
Energy

Corporate and
Other *

Total
       
         
                   
Net Income attributable to ATN International, Inc. stockholders         $   31,488        
Net income attributable to non-controlling interests, net of tax           17,406        
Income tax expense           (1,341)        
Other expense, net           1        
Loss on deconsolidation of subsidiary           529        
Interest expense, net           7,225        
Operating income $   55,317 $   28,308 $   5,179 $   (33,496) $   55,308        
Depreciation and amortization   25,601   50,007   6,668   4,658   86,934        
(Gain) Loss on disposition of assets   131   (30)   -    -    101        
Loss on damaged assets and other hurricane related charges , net of insurance recovery   -    3,956   -    -    3,956        
Restructuring charges   -    1,169   -    -    1,169        
Transaction-related charges   -    286   -    723   1,009        
Adjusted EBITDA  $   81,049 $   83,696 $   11,847 $   (28,115) $ 148,477        
                   
                   
                   
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments            


   
        Table 6
  ATN International, Inc.
  (In Thousands)
  Reconciliation of GAAP measures to Non-GAAP measures
         
  Reconciliation of Operating Income (Loss) to Operating Income excluding hurricane charges, Net Income (Loss) attributable to ATN stockholders to Net Income (Loss) attributable to ATN stockholders excluding hurricane charges and Net Income (Loss) per share attributable to ATN stockholders to Net Income (Loss) per share attributable to ATN stockholders excluding hurricane charges
         
  For the Three Months Ended December 31, 2018 is as follows:
         
    Operating Income (Loss) Net Income (Loss)
Attributable to ATN
Stockholders
Net Income (Loss) per
share Attributable to ATN
Stockholders
         
  GAAP - As reported $   10,318 $   1,133 $   0.07
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   85   85   0.01
  Tax effect   -    -    - 
  Non-GAAP $   10,403 $   1,218 $   0.08
     
         
  For the Three Months Ended December 31, 2017 is as follows:
         
    Operating Income
(Loss)
Net Income (Loss)
Attributable to ATN
Stockholders
Net Income (Loss)
per share Attributable to ATN
|Stockholders
         
  GAAP - As reported $   41,480 $   43,499 $   2.71
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   (32,610)   (32,610)   (2.03)
  Tax effect   -    69   0.00
  Non-GAAP $   8,870 $   10,958 $   0.69
 
  For the Year Ended December 31, 2018 is as follows:
         
    Operating Income
(Loss)
Net Income (Loss)
Attributable to ATN
Stockholders
Net Income (Loss)
per share Attributable to ATN
Stockholders
         
  GAAP - As reported $   61,023 $   19,815 $   1.24
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   750   750   0.05
  Tax effect   -    -    - 
  Non-GAAP $   61,773 $   20,565 $   1.29
         
  For the Year Ended December 31, 2017 is as follows:
         
    Operating Income
(Loss)
Net Income (Loss)
Attributable to ATN
Stockholders
Net Income (Loss)
per share Attributable to ATN
Stockholders
         
  GAAP - As reported $   55,308 $   31,488 $   1.94
  Adjust for:  Loss on damaged assets and other hurricane related charges, net of insurance recovery   3,956   3,956   0.24
  Tax effect   -    -    0.00
  Non-GAAP $   59,264 $   35,444 $   2.19
 

Contact:       
978-619-1300
Michael T. Prior
Chairman and
Chief Executive Officer

Justin D. Benincasa
Chief Financial Officer

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