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CST: 14/11/2019 14:14:09   

ATN Reports Third Quarter 2019 Results

21 Days ago

Third Quarter Results

  • Revenue was $115.6 million compared to prior year of $121.1 million
  • Excluding one-time items and a sale transaction, revenue increased year-on-year
  • International Telecom operations continue strong cash flow trends
  • US Telecom operations benefitted from new long-term contracts

BEVERLY, Mass., Oct. 23, 2019 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the third quarter ended September 30, 2019.

Business Review and Outlook

“Our third quarter performance reflects both continued organic growth in our International Telecom businesses and the improved performance of our US Telecom segment,” said Michael Prior, Chairman, and Chief Executive Officer. “While reported revenues and operating income declined year-on-year, adjusting for non-recurring items included in the year-ago quarter, consolidated recurring revenue¹ increased at a mid-single digit rate, driving even higher year-on-year growth in Adjusted EBITDA.  

“We continued to achieve positive operating results in our International Telecom segment, where we are benefitting from leadership positions in key markets and the network investments made in the past several years to expand fiber coverage and data capacity. Additionally, the steady recovery of our U.S. Virgin Islands business is evident as more hotels and residential housing units come back online in the market, and we take back market share.  Adjusting for non-recurring items that were included in the year-ago quarter, our International Telecom segment revenue increased 6%, and we anticipate continued year-on-year revenue growth for the segment in the fourth quarter.  More important, quarterly results for this segment again showed a significant improvement in free cash flow compared to 2018 levels.

“US Telecom segment revenues also increased at a mid-single digit rate in the third quarter, and we were pleased to see a positive year-over-year comparison for the quarter. The positive revenue performance this quarter benefitted from a full quarter of Connect America Fund Phase ll (CAF II) federal support revenue and the new contract signed in August as part of a comprehensive agreement to support AT&T’s partnership with the First Responder Network Authority, known as FirstNet.  The infrastructure services and support deliverables of this agreement will provide ATN with stable, long-term recurring revenue and consistent cash flows. We expect year-on-year US Telecom segment comparisons to continue to be favorable in this year’s fourth quarter.  

“With respect to our Renewable Energy segment, we are building part of our shovel ready pipeline and adding additional capacity, while at the same time holding preliminary discussions with potential strategic partners interested in investing through the Vibrant Energy platform.”

Third Quarter 2019 Financial Results

Third quarter 2019 revenues of $115.6 million were down 5% compared to last year’s reported revenues of $121.1 million.  Compared with third quarter 2018 recurring revenues1 of $109.7 million, third quarter 2019 recurring revenues1 increased by 5%. Last year’s reported revenues included $4.2 million from the Company’s U.S. solar portfolio sold in late 2018 and non-recurring revenue of $7.2 million for additional hurricane related USF high cost support funding from the FCC for our U.S. Virgin Islands business.  Operating income for the third quarter of 2019 was $10.2 million compared with the prior year’s $30.8 million, and Adjusted EBITDA2 was $33.0 million, compared to $38.9 million in the prior year period.  In addition to the $11.4 million of 2018 non-recurring revenue items noted above, the operating income comparison was also negatively affected by the prior year’s gain of $13.5 million from the sale of certain US Telecom assets.  Other income (expense) also includes a $2.1 million mark-to-market write-down of a non-controlling equity investment.  Net income attributable to ATN’s stockholders for the third quarter was $1.4 million, or $0.09 per diluted share, compared with the prior year period’s net income of $17.0 million, or $1.06 per diluted share.   

______________________________________________________________________
1 See Table 6 for reconciliation of Revenue to Recurring Revenue, which is a non-GAAP measure
2 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.


Third Quarter 2019 Operating Highlights

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

Segment Results (in Thousands)
  Three Months Ended September 30, 2019
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 32,893 $ 81,285 $ 1,438   $ -   $ 115,616
Operating Income (Loss) $ 7,912 $ 10,867 $ (714 ) $ (7,817 ) $ 10,248
Adjusted EBITDA2 $ 13,779 $ 24,956 $ 337   $ (6,068 ) $ 33,004
Nine Months Ended September 30, 2019
Capital Expenditures $ 8,533 $ 33,159 $ 2,183   $ 5,611   $ 49,486
Three Months Ended September 30, 2018
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 31,808 $ 83,912 $ 5,418   $ -   $ 121,138
Operating Income (Loss) $ 22,773 $ 16,239 $ (177 ) $ (8,011 ) $ 30,824
Adjusted EBITDA2 $ 13,529 $ 28,645 $ 3,090   $ (6,374 ) $ 38,890
Nine Months Ended September 30, 2018
Capital Expenditures $ 9,460 $ 136,791 $ 1,641   $ 6,386   $ 154,278

The following is the reconciliation of Revenue to Recurring Revenue for the three months ended September 30, 2019 and September 30, 2018:

Reconciliation of Revenue to Recurring Revenue 1  (in Thousands)
Three Months Ended September 30, 2019
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 32,893 $ 81,285   $ 1,438   $ - $ 115,616  
Adjustments $ - $ -   $ -   $ - $ -  
Recurring Revenue 1 $ 32,893 $ 81,285   $ 1,438   $ - $ 115,616  
Three Months Ended September 30, 2018
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 31,808 $ 83,912   $ 5,418   $ - $ 121,138  
USF Incremental high cost support funding $ - $ (7,219 ) $ -   $ - $ (7,219 )
US Solar portfolio revenues $ - $ -   $ (4,182 ) $ - $ (4,182 )
Recurring Revenue 1 $ 31,808 $ 76,693   $ 1,236   $ - $ 109,737  

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 decreased 3% year-on-year mainly due to the non-recurring $7.2 million of USF high cost support funding from the FCC received in the third quarter of 2018.  Offsetting the loss of those non-recurring revenues has been a strong increase in broadband revenues in most of our markets, including the U.S. Virgin Islands, where the market and our operations continue to recover from the 2017 hurricanes.  We expect continued year-on-year revenue improvement in this segment in the fourth quarter of 2019.  International Telecom operating income decreased 33% to $10.9 million from the prior year’s quarter and Adjusted EBITDA2 decreased 13% to $25.0 million from the prior year’s quarter, both as a result of the $7.2 million non-recurring revenue received in the third quarter of 2018.  This was partially offset by higher broadband revenues in multiple markets and the post-storm recovery in the U.S. Virgin Islands.

US Telecom

US Telecom revenues consist mainly of wireless revenues from our voice and data wholesale wireless operations and our smaller retail operations in the Southwestern United States, as well as enterprise and wholesale wireline revenues.  US Telecom segment revenues increased by 3% primarily due to the CAF II federal support revenues, which began earlier in 2019. US Telecom revenues increased 25% sequentially over the prior quarter, reflecting higher seasonal traffic volumes and the commencement of the FirstNet agreement. We expect construction revenues under the network build portion of the FirstNet agreement to begin in the fourth quarter and continue through mid-2021.  As revenues from the build will be largely offset by construction costs, it should not have a material impact on Adjusted EBITDA2 or operating income.   Adjusted EBITDA2 for this segment increased by 2% to $13.8 million year-on-year due to the impact of the CAF II revenues offset partially by Mobility Fund expense offsets discontinued from the prior year and additional operating costs related to early stage business investments.  The decrease in this segment’s operating income from the prior year’s $22.8 million to $7.9 million was mostly due to the $13.5 million gain on sale of certain wholesale wireless cell sites in the third quarter of 2018.

Renewable Energy

Renewable Energy segment revenues are principally the result of the generation and sale of energy from our commercial solar projects in India.  In the fourth quarter of 2018, ATN completed the sale of its portfolio of solar projects in the United States. As a result, third quarter 2019 revenues were $1.4 million, compared to $5.4 million in the prior year quarter, operating loss was $0.7 million compared to an operating loss of $0.2 million in the prior year quarter and Adjusted EBITDA2 amounted to $0.3 million, compared to $3.1 million in the third quarter of 2018.  Year-on-year revenue, operating income and Adjusted EBITDA2 comparisons for this segment will also be negative for the fourth quarter as a result of the sale transaction.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at September 30, 2019 was $166.4 million.  Additionally, the Company ended the third quarter with $3.3 million in short-term investments.  Net cash provided by operating activities was $56.8 million for the first nine months of 2019, compared with $98.0 million for the prior year period.  The decrease in operating cash flow compared with the prior year is mostly the result of lower net income, the current year income tax payments of $28.5 million primarily related to the gain on the 2018 sale of the U.S. Solar asset portfolio, and other working capital activity in the current year.  For the first nine months of 2019, the Company used net cash of $83.4 million for investing and financing activities compared to $143.6 million for the first nine months of 2018.  This included $49.5 million in capital expenditures, $10.3 million for minority investments and $8.2 million of dividends on common stock.  Management expects full year 2019 capital expenditures in International Telecom to be approximately $50 million which would be approximately $110 million below 2018 levels.  In the US Telecom segment, we expect capital expenditures to be approximately $10 - $15 million, including some required capital spending related to towers and backhaul in conjunction with the FirstNet contract.  In the Renewable Energy segment, we expect $6 - $7 million of project costs in 2019 related to building additional capacity.

Conference Call Information

ATN will host a conference call on Thursday, October 24, 2019 at 9:30 a.m. Eastern Time (ET) to discuss its third quarter 2019 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 4758768. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on October 24, 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 including revenue and adjusted EBITDA expectations and capital expenditures for 2019; the competitive environment in our key markets, demand for our services and industry trends; our growth opportunities; the estimated increase in revenues from our customers in the U.S. Virgin Islands following the hurricanes; and management’s plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results.  Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others,  (1) the general performance of our operations, including operating margins, revenues, capital expenditures, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power;  (2) our ability to maintain favorable roaming arrangements, receive roaming traffic and satisfy the needs and demands of our major wireless customers; (3) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (4) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables businesses; (5) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (6) economic, political and other risks facing our operations; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to expand and obtain funding for our renewable energy business; (9) our ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (10) the occurrence of weather events and natural catastrophes; (11) increased competition;  (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) our continued access to capital and credit markets; and (14) the risk of currency fluctuation for those markets in which we operate.  These and other additional factors that may cause actual future events and results to differ materially from the events and results indicated in the forward-looking statements above are set forth more fully under Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019 and the other reports we file from time to time with the SEC.  The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors that may affect such forward-looking statements, except as required by law.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has included Recurring Revenue and Adjusted EBITDA in this release and in the tables included herein. 

Recurring Revenue is defined as total revenue adjusted to exclude the receipt of incremental USF support funds in support of the Company’s restoration of its network following the 2017 hurricanes in the U.S. Virgin Islands, revenues from our U.S. solar asset portfolio that was sold in Q4 2018, and revenues from the sale of certain US Telecom wholesale wireless cell sites in Q2 2018. 

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. 

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. 

Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
       
  September 30,   December 31,
2019 2018
Assets:      
Cash and cash equivalents $ 165,280   $ 191,836
Restricted cash   1,071     1,071
Short-term investments   3,250     393
Other current assets   88,210     82,465
       
Total current assets   257,811     275,765
       
Property, plant and equipment, net   605,501     626,852
Operating lease right-of-use assets   71,111     -
Goodwill and other intangible assets, net   165,521     166,979
Other assets   62,856     37,708
       
Total assets $ 1,162,800   $ 1,107,304
       
Liabilities and Stockholders’ Equity:      
Current portion of long-term debt $ 4,688   $ 4,688
Taxes payable   9,999     31,795
Current portion of operating lease liabilities   9,912     -
Other current liabilities   116,431     104,167
       
Total current liabilities   141,030     140,650
       
Long-term debt, net of current portion $ 83,577   $ 86,294
Deferred income taxes   3,989     10,276
Operating lease liabilities   59,663     -
Other long-term liabilities   56,242     46,760
       
Total liabilities   344,501     283,980
       
Total ATN International, Inc.’s stockholders’ equity   688,083     695,387
Non-controlling interests   130,216     127,937
       
Total equity   818,299     823,324
       
Total liabilities and stockholders’ equity $ 1,162,800   $ 1,107,304
       



Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
               
  Three Months Ended   Nine Months Ended
September 30,   September 30,
  2019   2018   2019   2018
Revenues:              
Wireless $ 54,555     $ 52,003     $ 143,705     $ 153,046  
Wireline   59,623       63,717       178,555       173,083  
Renewable energy   1,438       5,418       4,377       17,272  
Total revenue   115,616       121,138       326,637       343,401  
               
Operating expenses:              
Termination and access fees   27,622       29,866       83,440       84,037  
Engineering and operations   20,095       18,177       58,234       54,738  
Sales, marketing and customer service   9,785       8,995       29,048       25,969  
General and administrative   25,110       25,210       75,518       77,470  
Transaction-related charges   21       178       89       642  
Depreciation and amortization   22,603       21,384       64,870       64,602  
(Gain) loss on disposition of assets   132       (13,496 )     321       (15,509 )
Loss on damaged assets and other hurricane related charges   -       -       -       666  
Total operating expenses   105,368       90,314       311,520       292,615  
               
Operating income   10,248       30,824       15,117       50,786  
               
Other income (expense):              
Interest expense, net   (884 )     (1,661 )     (1,983 )     (5,339 )
Other income (expense)   (2,686 )     (1,244 )     (2,755 )     (3,042 )
Other income (expense), net   (3,570 )     (2,905 )     (4,738 )     (8,381 )
               
Income before income taxes   6,678       27,919       10,379       42,405  
Income tax expense   1,834       7,010       2,774       13,018  
               
Net Income   4,844       20,909       7,605       29,387  
               
Net income attributable to non-controlling interests, net   (3,459 )     (3,887 )     (8,657 )     (10,705 )
               
Net income (loss) attributable to ATN International, Inc. stockholders $ 1,385     $ 17,022     $ (1,052 )   $ 18,682  
               
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:              
               
Basic Net Income (Loss) $ 0.09     $ 1.07     $ (0.07 )   $ 1.17  
               
Diluted Net Income (Loss) $ 0.09     $ 1.06     $ (0.07 )   $ 1.16  
               
Weighted average common shares outstanding:              
Basic   16,000       15,958       15,984       15,987  
Diluted   16,007       16,021       15,984       16,042  
               



Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
   
  Nine Months Ended September 30,
  2019   2018
       
Net income $ 7,605     $ 29,387  
Depreciation and amortization   64,870       64,602  
Provision for doubtful accounts   3,796       4,199  
(Gain) Loss on disposition of assets   321       (15,509 )
Stock-based compensation   4,881       5,071  
Deferred income taxes   (6,287 )     (3,062 )
Investment loss   2,313       -  
Change in prepaid and accrued income taxes   (13,889 )     10,557  
Change in other operating assets and liabilities   (7,444 )     (19 )
Other non-cash activity   681       2,788  
       
Net cash provided by operating activities   56,847       98,014  
       
Capital expenditures   (49,363 )     (75,375 )
Hurricane rebuild capital expenditures   (123 )     (78,903 )
Hurricane insurance proceeds   -       34,606  
Purchases of strategic investments   (10,285 )     (3,000 )
Proceeds from sale of short-term investments   5,141       6,564  
Purchase of short-term investments   (8,028 )     -  
Proceeds from sale of assets   -       4,130  
Divestiture of business   -       926  
Government grants   -       5,400  
       
       
Net cash used in investing activities   (62,658 )     (105,652 )
       
Dividends paid on common stock   (8,160 )     (8,153 )
Distributions to non-controlling interests   (5,760 )     (15,271 )
Principal repayments of term loan   (2,825 )     (5,723 )
Payment of debt issuance costs   (1,340 )     -  
Stock-based compensation share repurchases   (1,607 )     (2,101 )
Purchases of common stock - share buyback   (162 )     (1,576 )
Repurchases of non-controlling interests   (1,353 )     (5,196 )
Investments made by minority shareholders   488       -  
Other   -       72  
       
Net cash used in financing activities   (20,719 )     (37,948 )
       
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash   (26 )     (353 )
       
Net change in total cash, cash equivalents and restricted cash   (26,556 )     (45,939 )
       
Total cash, cash equivalents and restricted cash, beginning of period   192,907       219,890  
       
Total cash, cash equivalents and restricted cash, end of period $ 166,351     $ 173,951  
       



Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
 
For the three months ended September 30, 2019 is as follows:
           
  US
Telecom
International
Telecom
Renewable
Energy
Corporate
and Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 32,168   $ 22,387   $ -   $ -   $ 54,555  
Wireline   725     58,898     -     -     59,623  
Renewable Energy   -     -     1,438     -     1,438  
Total Revenue $ 32,893   $ 81,285   $ 1,438   $ -   $ 115,616  
           
Operating Income (Loss) $ 7,912   $ 10,867   $ (714 ) $ (7,817 ) $ 10,248  
Stock-based compensation $ -   $ 285   $ -   $ 1,263   $ 1,548  
Non-controlling interest ( net income or (loss) ) $ (1,342 ) $ (2,154 ) $ 37   $ -   $ (3,459 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 13,779   $ 24,956   $ 337   $ (6,068 ) $ 33,004  
           
Balance Sheet Data (at September 30, 2019):          
Cash, cash equivalents and investments $ 36,738   $ 51,178   $ 21,030   $ 59,585   $ 168,530  
Total current assets   60,782     101,113     38,696     57,220     257,811  
Fixed assets, net   69,642     470,338     43,497     22,024     605,501  
Total assets   230,585     660,367     86,224     185,624     1,162,800  
Total current liabilities   30,870     75,348     1,354     33,458     141,030  
Total debt   -     88,265     -     -     88,265  
           
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
 
 
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
 
For the three months ended September 30, 2018 is as follows:
           
  US
Telecom
International
Telecom
Renewable
Energy
Corporate
and Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 29,784   $ 22,219   $ -   $ -   $ 52,003  
Wireline   2,024     61,693     -     -     63,717  
Renewable Energy   -     -     5,418     -     5,418  
Total Revenue $ 31,808   $ 83,912   $ 5,418   $ -   $ 121,138  
           
Operating Income (Loss) $ 22,773   $ 16,239   $ (177 ) $ (8,011 ) $ 30,824  
Stock-based compensation   -     20     29     1,344     1,393  
Non-controlling interest ( net income or (loss) ) $ (1,299 ) $ (2,375 ) $ (213 ) $ -   $ (3,887 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 13,529   $ 28,645   $ 3,090   $ (6,374 ) $ 38,890  
           
           
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the nine months ended September 30, 2019 is as follows:
           
  US
Telecom
International
Telecom
Renewable
Energy
Corporate
and Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 78,261   $ 65,444   $ -   $ -   $ 143,705  
Wireline   2,538     176,017     -     -     178,555  
Renewable Energy   -     -     4,377     -     4,377  
Total Revenue $ 80,799   $ 241,461   $ 4,377   $ -   $ 326,637  
           
Operating Income (Loss) $ 5,927   $ 35,802   $ (750 ) $ (25,862 ) $ 15,117  
Stock-based compensation $ -     306   $ -     4,575   $ 4,881  
Non-controlling interest ( net income or (loss) ) $ (1,864 ) $ (6,810 ) $ 17   $ -   $ (8,657 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 23,007   $ 76,497   $ 1,693   $ (20,800 ) $ 80,397  
           
Statement of Cash Flows Data:          
Capital expenditures $ 8,533   $ 33,159   $ 2,183   $ 5,611   $ 49,486  
           
           
 
 
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the nine months ended September 30, 2018 is as follows:
           
  US
Telecom
International
Telecom
Renewable
Energy
Corporate
and Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 85,767   $ 67,279   $ -   $ -   $ 153,046  
Wireline   4,824     168,259     -     -     173,083  
Renewable Energy   -     -     17,272     -     17,272  
Total Revenue $ 90,591   $ 235,538   $ 17,272   $ -   $ 343,401  
           
Operating Income (Loss) $ 35,839   $ 37,449   $ 3,687   $ (26,189 ) $ 50,786  
Stock-based compensation   -     68     86     4,917     5,071  
Non-controlling interest ( net income or (loss) ) $ (2,771 ) $ (7,209 ) $ (725 ) $ -   $ (10,705 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 38,208   $ 74,055   $ 10,691   $ (21,767 ) $ 101,187  
           
Statement of Cash Flows Data:          
Capital expenditures $ 9,460   $ 136,791   $ 1,641   $ 6,386   $ 154,278  
           
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at December 31, 2018
           
  US
Telecom
International
Telecom
Renewable
Energy
Corporate
and Other *
Total
           
           
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  
           
           
(1) See Table 5 for reconciliation of Net Income to Adjusted EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
           
           
           
  Quarter ended
  September 30, December 31, March 31, June 30, September 30,
  2018** 2018** 2019 2019 2019
           
US Telecom Operational Data:          
Wireless - Total Domestic Base Stations   1,035     1,045     1,046     1,048     1,048  
           
           
International Telecom Operational Data:          
Wireline - Voice / Access lines*   170,400     171,100     171,200     171,200     170,200  
Wireline - Data Subscribers*   116,800     119,800     123,600     124,700     127,100  
Wireline - Video Subscribers   43,600     41,700     41,000     39,700     38,600  
Wireless - Subscribers*   300,600     300,400     293,500     290,400     284,800  
           
* Subscriber counts were adjusted for all periods presented based upon a change in methodology
           
** For the presented 2018 quarters, subscribers for wireline voice, data and video in the U.S. Virgin Islands are included as active and in the subscriber count, but many were not billed post-hurricane
         



Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
   
 
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended September 30, 2019 and 2018
 
Three Months Ended September 30, 2019
  US
Telecom 
  International
Telecom
  Renewable
Energy
  Corporate
and Other *
  Total  
                     
Net income (loss)attributable to ATN International, Inc. stockholders                 $ 1,385  
Net income attributable to non-controlling interests, net of tax                 3,459  
Income tax expense                 1,834  
Other (income) expense, net                 2,686  
Interest expense, net                 884  
Operating income $ 7,912   $ 10,867   $ (714 ) $ (7,817 ) $ 10,248  
Depreciation and amortization 5,770   14,089   1,016   1,728   22,603  
(Gain) Loss on disposition of assets 97   -   35   -   132  
Transaction-related charges -   -   -   21   21  
Adjusted EBITDA $ 13,779   $ 24,956   $ 337   $ (6,068 ) $ 33,004  
                     
Three Months Ended September 30, 2018
  US
Telecom 
  International
Telecom 
  Renewable
Energy
  Corporate
and Other *
  Total   
                     
Net Income (loss) attributable to ATN International, Inc. stockholders                 $ 17,022  
Net income attributable to non-controlling interests, net of tax                 3,887  
Income tax benefit                 7,010  
Other expense, net                 1,244  
Interest expense, net                 1,661  
Operating income $ 22,773   $ 16,239   $ (177 ) $ (8,011 ) $ 30,824  
Depreciation and amortization 5,665   12,441   1,819   1,459   21,384  
(Gain) loss on disposition of assets (14,909 ) (35 ) 1,448   -   (13,496 )
Transaction-related charges -   -   -   178   178  
Adjusted EBITDA $ 13,529   $ 28,645   $ 3,090   $ (6,374 ) $ 38,890  
                     
                     
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
                     
                     
Reconciliation of Net Income to Adjusted EBITDA for the Nine Months Ended September 30, 2019 and 2018
Nine Months Ended September 30, 2019
  US
Telecom 
   International
Telecom 
  Renewable
Energy
  Corporate
and Other *
  Total  
Net income attributable to ATN International, Inc. stockholders                 $ (1,052 )
Net income attributable to non-controlling interests, net of tax                 8,657  
Income tax expense                 2,774  
Other (income) expense, net                 2,755  
Interest expense, net                 1,983  
Operating income $ 5,927   $ 35,802   $ (750 ) $ (25,862 ) $ 15,117  
Depreciation and amortization 16,919   40,709   2,269   4,973   64,870  
(Gain) Loss on disposition of long-lived assets 161   (14 ) 174   -   321  
Transaction-related charges -   -   -   89   89  
Adjusted EBITDA $ 23,007   $ 76,497   $ 1,693   $ (20,800 ) $ 80,397  
                     
                     
                     
Nine Months Ended September 30, 2018
  US
Telecom 
   International
Telecom 
  Renewable
Energy
  Corporate
and Other *
  Total  
Net Income attributable to ATN International, Inc. stockholders                 $ 18,682  
Net income attributable to non-controlling interests, net of tax                 10,705  
Income tax expense                 13,018  
Other (income) expense, net                 3,042  
Interest expense, net                 5,339  
Operating income $ 35,839   $ 37,449   $ 3,687   $ (26,189 ) $ 50,786  
Depreciation and amortization 19,013   35,907   5,492   4,190   64,602  
(Gain) Loss on disposition of long-lived assets (17,054 ) 33   1,512   -   (15,509 )
Loss on damaged assets and other hurricane related charges, net of insurance recovery -   666   -   -   666  
Transaction-related charges 410   -   -   232   642  
Adjusted EBITDA $ 38,208   $ 74,055   $ 10,691   $ (21,767 ) $ 101,187  
                     
                     
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
 



              Table 6
ATN International, Inc.
Reconciliation of Non GAAP Measures
(in Thousands)
               
Reconciliation of Revenue to Recurring Revenue for the Three Months Ended September 30, 2019 and 2018
               
Three Months Ended September 30, 2019
  US   International   Renewable    
  Telecom   Telecom   Energy   Total
               
Revenue $ 32,893     $ 81,285     $ 1,438     $ 115,616  
               
Adjustments for Recurring Revenue:   -       -       -       -  
               
Recurring Revenue $ 32,893     $ 81,285     $ 1,438     $ 115,616  
               
               
Three Months Ended September 30, 2018
               
  US   International   Renewable    
  Telecom   Telecom   Energy   Total
               
Revenue $ 31,808     $ 83,912     $ 5,418     $ 121,138  
               
Less: USF incremental high cost support funding   -       (7,219 )     -       (7,219 )
Less: Revenues of US Solar asset portfolio, sold in Q4 2018   -       -       (4,182 )     (4,182 )
               
Recurring Revenue $ 31,808     $ 76,693     $ 1,236     $ 109,737  
               
               
               
Reconciliation of Revenue to Recurring Revenue for the Nine Months Ended September 30, 2019 and 2018
               
Nine Months Ended September 30, 2019
               
               
  US   International   Renewable    
  Telecom   Telecom   Energy   Total
               
Revenue $ 80,799     $ 241,461     $ 4,377     $ 326,637  
               
Adjustments for Recurring Revenue:   -       -       -       -  
               
Recurring Revenue $ 80,799     $ 241,461     $ 4,377     $ 326,637  
               
               
Nine Months Ended September 30, 2018
               
  US   International   Renewable    
  Telecom   Telecom   Energy   Total
               
Revenue $ 90,591     $ 235,538     $ 17,272     $ 343,401  
Less: USF incremental high cost support funding   -       (15,400 )     -       (15,400 )
Less: Revenues of US Solar asset portfolio, sold in Q4 2018   -       -       (13,282 )     (13,282 )
Less: Revenues from US Telecom wholesale wireless cell sites sold in Q2 2018   (4,052 )     -       -       (4,052 )
               
Recurring Revenue $ 86,539     $ 220,138     $ 3,990     $ 310,667  


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

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