July 24, 2019 - 5:15 PM EDT
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ATN Reports Second Quarter 2019 Results

Second Quarter Results

  • Revenue excluding sale transactions and one-time items shows year-on-year organic growth
  • International telecom results reflect operational improvements in all markets
  • Sequential improvement in US Telecom operations resulting from seasonal factors and receipt of Connect America Fund Phase II funds

BEVERLY, Mass., July 24, 2019 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the second quarter ended June 30, 2019.

Business Review and Outlook

“Second quarter consolidated results reflected several positive elements that are expected to continue as we move ahead through 2019”, noted Michael Prior, Chief Executive Officer.  “While reported revenues declined $10.1 million and operating income declined $13.0 million on a year-on-year basis, adjusting for sale transactions and the Federal Communications Commissions ('FCC') hurricane support we received in last year’s second quarter, consolidated recurring revenue1 increased 4%, driving even higher year-on-year Adjusted EBITDA2 performance.  This improvement in underlying operations was led by our International Telecom operations.  While revenue for the segment was down 2%, recurring revenue was up 9%, excluding the $8.2 million in hurricane relief funds received from the FCC in the second quarter of 2018.   The steady post-hurricane recovery of our U.S. Virgin Island business and continued broadband growth and margin expansion in other key international markets were the major contributing factors.

“The improvement in International Telecom operations more than offset US Telecom segment results, which were considerably below last year’s levels, but up sequentially, reflecting seasonally higher volumes and the beginning of revenue benefits from our Connect America Fund Phase II ('CAF II') award.  As we have previously noted, there are several initiatives underway in our US Telecom business that, if successful, would improve results and provide a more stable revenue base.  These include providing additional services to our carrier customers beyond traditional wholesale roaming, and investments in new business offerings that have the potential to be longer term growth drivers for ATN.

“Looking ahead, we expect our International Telecom business to continue to perform well this year and generate healthy cash flows.  This operating segment is benefitting from the significant network investments we have made in the past few years, the continued steady recovery of our U.S. Virgin Islands business and improved market penetration and operating efficiencies across our portfolio. Also, we are optimistic that some of our initiatives will lead to an improved outlook for our US Telecom segment.  

“Based on our current portfolio of businesses, we reaffirm our expectation that 2019 will be a year of major improvement in cash flows for ATN, and we continue to seek out opportunities that have the potential to be value-creating for ATN and our shareholders.”

Second Quarter 2019 Financial Results

Second quarter 2019 revenues were $107.7 million compared to last year’s second quarter recurring revenue1 of $103.3 million. Last year’s reported revenues of $117.8 million included $4.5 million from the Company’s US solar assets portfolio that was sold in late 2018,  non-recurring revenue of $8.2 million for additional USF high cost support funding from the FCC for our U.S. Virgin Islands business and $1.8 million from  wholesale wireless cell sites that were sold last year.  Operating income for the second quarter of 2019 was $2.8 million compared with the prior year’s $15.8 million, and Adjusted EBITDA2 was $24.2 million, compared to $36.0 million in the prior year period.  In addition to the $14.5 million of 2018 revenue items noted above, the operating income comparison was also negatively affected by the prior year’s gain of $2.3 million from the sale of certain US Telecom assets.  Net loss attributable to ATN’s stockholders for the second quarter was $0.9 million, or $0.05 loss per share, compared with the prior year period’s net income of $7.2 million, or $0.45 income per diluted share.   

Second Quarter 2019 Operating Highlights

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

Segment Results
 Three Months Ended June 30, 2019 (in Thousands)
 US TelecomInternational
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue$26,413 $79,859 $1,449 $- $107,721 
Adjusted EBITDA1$6,968 $24,656 $805 $(8,209)$24,220 
Operating Income$1,521 $11,057 $167 $(9,991)$2,754 
 Six Months Ended June 30, 2019 (in Thousands)
Capital Expenditures$6,368 $23,692 $817 $4,519 $35,396 
 Three Months Ended June 30, 2018 (in Thousands)
 US TelecomInternational
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue$30,284 $81,481 $6,023 $- $117,788 
Adjusted EBITDA1$12,685 $27,617 $3,826 $(8,173)$35,955 
Operating Income$7,841 $15,571 $1,927 $(9,586)$15,753 
 Six Months Ended June 30, 2018 (in Thousands)
Capital Expenditures$7,266 $95,520 $1,388 $3,074 $107,248 

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.  Lower US Telecom segment revenues and operating income reflected a 10% year-over-year decline in wireless revenues, primarily due to  lower wholesale traffic, and the sale of approximately 100 wholesale wireless cell sites early in the third quarter of 2018. US Telecom revenues increased 23% sequentially over the prior quarter, reflecting higher seasonal traffic volumes and the additional revenue from the 10 year CAF II award that began this quarter. Adjusted EBITDA2 for this segment declined by 45% to $7.0 million year-on-year due to the impact of the reduction in wireless revenues over that period and the additional operating costs related to early stage business investments first made in mid-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 decreased 2% year-on-year mainly due to the $8.2 million of USF high cost support funding from the FCC received in the second quarter of 2018 that was mostly offset by increased broadband revenues in several of our markets, including the U.S. Virgin Islands, where  our operations continue to recover from the 2017 hurricanes.  We expect continued year-on-year revenue improvement throughout the remainder of 2019, exclusive of the additional non-recurring revenue of $7.2 million from FCC support received in the third quarter of 2018.  International Telecom operating income decreased 29% to $11.1 million from the prior year’s quarter and Adjusted EBITDA2 decreased 11% to $24.7 million from the prior year’s quarter, both as a result of the $8.2 million impact on operating income and Adjusted EBITDA2 from the non-recurring FCC support received in the second quarter of 2018.  This was partially offset by higher data revenues and increased revenues from the post-storm recovery.

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, second quarter 2019 revenues were $1.4 million, compared to $6.0 million in the prior year quarter, operating income was $0.2 million compared to $1.9 million in the prior year quarter and Adjusted EBITDA1 amounted to $0.8 million, compared to $3.8 million in the second quarter of 2018.  Year-on-year revenue, operating income and Adjusted EBITDA2 comparisons for this segment will be negative for the remainder of 2019 as a result of this transaction.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at June 30, 2019 was $146.7 million.  Additionally, the Company ended the second quarter with $5.3 million in short-term investments.  Net cash provided by operating activities was $18.5 million for the first six months of 2019, compared with $46.0 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 tax payments of $27.0 million primarily related to the gain on the 2018 sale of the US Solar asset portfolio, and other working capital activity in the current year.  For the first six months of 2019, the Company used net cash of $64.8 million for investing and financing activities.  This included $35.4 million in capital expenditures, $10.0 million for other minority investments, $5.0 million for the purchase of short-term cash investments and $5.4 million of dividends on common stock.  Management expects International Telecom capital expenditures to be approximately $50.0 million for the full year 2019, approximately $110.0 million below 2018 levels.  In the US Telecom segment, we expect capital expenditures to be similar to 2018 levels, excluding new initiatives and early stage business spending.  In the Renewable Energy segment, we expect $6.0 - $7.0 million of construction costs for the balance of 2019 related to building additional capacity.

Conference Call Information

ATN will host a conference call on Thursday, July 25, 2019 at 9:30 a.m. Eastern Time (ET) to discuss its second 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 9697219. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on July 25, 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 for 2019 and capital expenditures; the competitive environment in our key markets, demand for our services and industry trends; our growth opportunities; the estimated timeline for an 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 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, revenues from the US Solar asset portfolio which was sold in Q4 2018, and revenues from the US Telecom sale of 100 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.

_____________________________________________________________________
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.


  
 Table 1
 ATN International, Inc.
 Unaudited Condensed Consolidated Balance Sheets
 (in Thousands)
     
  June 30, December 31,
  2019 2018
 Assets:   
   Cash and cash equivalents$  145,611 $  191,836
   Restricted cash   1,071    1,071
   Short-term investments   5,281    393
   Other current assets   98,266    82,465
     
   Total current assets   250,229    275,765
     
   Property, plant and equipment, net   613,703    626,852
   Operating lease right-of-use assets   68,587    - 
   Goodwill and other intangible assets, net   165,933    166,979
   Other assets   48,524    37,708
     
 Total assets$  1,146,976 $  1,107,304
     
 Liabilities and Stockholders’ Equity:   
   Current portion of long-term debt$  4,688 $  4,688
   Taxes payable   8,342    31,795
   Current portion of operating lease liabilities   10,021    - 
   Other current liabilities   107,250    104,167
     
   Total current liabilities   130,301    140,650
     
   Long-term debt, net of current portion$  84,478 $  86,294
   Deferred income taxes   5,702    10,276
   Operating lease liabilities   58,748    - 
   Other long-term liabilities   49,206    46,760
     
   Total long-term liabilities   198,134    143,330
     
 Total liabilities   328,435    283,980
     
   Total ATN International, Inc.’s stockholders’ equity   689,683    695,387
   Non-controlling interests   128,858    127,937
     
 Total equity   818,541    823,324
     
   Total liabilities and stockholders’ equity$  1,146,976 $  1,107,304
     

 

         
        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,
   2019   2018   2019   2018 
 Revenues:       
   Wireless$  46,996  $  50,496  $  88,608  $  101,043 
   Wireline   59,276     61,269     119,473     109,365 
   Renewable energy   1,449     6,023     2,939     11,855 
   Total revenue   107,721     117,788     211,020     222,263 
         
 Operating expenses:       
   Termination and access fees   27,930     28,257     55,818     54,171 
   Engineering and operations   19,107     18,409     38,139     36,561 
   Sales, marketing and customer service   9,874     8,413     19,264     16,974 
   General and administrative   26,590     26,754     50,405     52,296 
   Transaction-related charges   28     438     68     465 
   Depreciation and amortization   21,549     21,913     42,267     43,217 
   (Gain) loss on disposition of assets   (111)    (2,333)    191     (2,049)
   Loss on damaged assets and other hurricane related       
     charges, net of insurance recovery   -      184     -      666 
 Total operating expenses   104,967     102,035     206,152     202,301 
         
 Operating income   2,754     15,753     4,868     19,962 
         
 Other income (expense):       
   Interest expense, net   (746)    (1,840)    (1,099)    (3,679)
   Other income (expense)    (255)    (1,045)    (68)    (1,798)
   Other income (expense), net   (1,001)    (2,885)    (1,167)    (5,477)
         
 Income before income taxes   1,753     12,868     3,701     14,485 
   Income tax expense (benefit)   (274)    2,088     939     6,008 
         
 Net Income    2,027     10,780     2,762     8,477 
         
 Net income attributable to non-controlling interests, net   (2,883)    (3,564)    (5,198)    (6,816)
         
 Net income (loss) attributable to ATN International, Inc. stockholders$  (856) $  7,216  $  (2,436) $  1,661 
         
 Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:       
         
   Basic Net Income (Loss)$  (0.05) $  0.45  $  (0.15) $  0.10 
         
         
   Diluted Net Income (Loss)$  (0.05) $  0.45  $  (0.15) $  0.10 
         
 Weighted average common shares outstanding:       
 Basic   15,997     15,962     15,986     15,996 
 Diluted    15,997     16,010     15,986     16,046 
         

 

  
 Table 3
 ATN International, Inc.
 Unaudited Condensed Consolidated Cash Flow Statement
 (in Thousands)
   
  Six Months Ended June 30,
   2019   2018 
     
   Net income $  2,762  $  8,477 
   Depreciation and amortization   42,267     43,217 
   Provision for doubtful accounts   2,736     2,249 
   Loss on disposition of assets   412     (2,049)
   Stock-based compensation   3,334     3,679 
   Deferred income taxes   (4,574)    (1,279)
   Change in prepaid and accrued income taxes   (16,853)    1,249 
   Change in other operating assets and liabilities   (11,703)    (11,142)
   Other non-cash activity   141     1,636 
     
   Net cash provided by operating activities   18,522     46,037 
     
   Capital expenditures   (35,273)    (40,594)
   Hurricane rebuild capital expenditures   (123)    (66,654)
   Hurricane insurance proceeds   -      34,606 
   Purchases of other investments   (10,000)    (2,000)
   Proceeds from sale of investments   141     5,348 
   Purchase of short-term investments   (5,028)    -  
   Proceeds from sale of assets   -      4,130 
   Divestiture of business, net of transferred cash of $0 and $0.3 million, respectively   -      926 
   Government grants   -      5,400 
     
     
   Net cash used in investing activities   (50,283)    (58,838)
     
   Dividends paid on common stock   (5,439)    (5,441)
   Distributions to non-controlling interests   (3,878)    (12,836)
   Principal repayments of term loan   (1,887)    (4,786)
   Payment of debt issuance costs   (1,340)    -  
   Stock-based compensation share repurchases   (1,578)    (3,660)
   Repurchases of non-controlling interests   (861)    (61)
   Investments made by minority shareholders   488     -  
     
   Net cash used in financing activities   (14,495)    (26,784)
     
 Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash   31     (178)
     
 Net change in total cash, cash equivalents and restricted cash   (46,225)    (39,763)
     
 Total cash, cash equivalents and restricted cash, beginning of period   192,907     219,890 
     
 Total cash, cash equivalents and restricted cash, end of period$  146,682  $  180,127 
     

 

      Table 4
 ATN International, Inc.
 Selected Segment Financial Information
 (In Thousands)
       
 For the three months ended June 30, 2019 is as follows:
       
  US
  Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
       
 Statement of Operations Data:     
 Revenue     
   Wireless$  25,656 $  21,340 $  -  $  -  $  46,996 
   Wireline   757    58,519    -     -     59,276 
   Renewable Energy   -     -     1,449    -     1,449 
   Total Revenue$  26,413 $  79,859 $  1,449 $  -  $  107,721 
       
 Operating Income (Loss)$  1,521 $  11,057 $  167 $  (9,991)$  2,754 
 Stock-based compensation$  -     11 $  -     2,017 $  2,028 
 Non-controlling interest ( net income or (loss) )$  (603)$  (2,260)$  (20)$  -  $  (2,883)
       
 Non GAAP measure:     
 Adjusted EBITDA (1)$  6,968 $  24,656 $  805 $  (8,209)$  24,220 
       
 Balance Sheet Data (at June 30, 2019):     
 Cash, cash equivalents and investments$  22,925 $  38,403 $  22,522 $  67,042 $  150,892 
 Total current assets   52,278    95,437    40,129    62,385    250,229 
 Fixed assets, net   72,501    474,185    44,309    22,708    613,703 
 Total assets   222,110    657,062    88,683    179,121    1,146,976 
 Total current liabilities   34,464    73,671    1,465    20,702    130,301 
 Total debt   -     89,167    -     -     89,167 
       
  
 ATN International, Inc.
 Selected Segment Financial Information
 (In Thousands)
       
 For the three months ended June 30, 2018 is as follows:
       
  US
  Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
       
 Statement of Operations Data:     
 Revenue     
   Wireless$  28,582 $  21,914 $  -  $  -  $  50,496 
   Wireline   1,702    59,567    -     -     61,269 
   Renewable Energy   -     -     6,023    -     6,023 
   Total Revenue$  30,284 $  81,481 $  6,023 $  -  $  117,788 
       
 Operating Income (Loss)$  7,841 $  15,571 $  1,927 $  (9,586)$  15,753 
 Stock-based compensation   -     20    29    2,054    2,103 
 Non-controlling interest ( net income or (loss) )$  (786)$  (2,567)$  (211)$  -  $  (3,564)
       
 Non GAAP measure:     
 Adjusted EBITDA (1)$  12,685 $  27,617 $  3,826 $  (8,173)$  35,955 
       
       
       
 ATN International, Inc.
 Selected Segment Financial Information
 (In Thousands)
       
 For the six months ended June 30, 2019 is as follows:
       
  US
  Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
       
 Statement of Operations Data:     
 Revenue     
   Wireless$  46,093 $  42,515 $  -  $  -  $  88,608 
   Wireline   1,813    117,660    -     -     119,473 
   Renewable Energy   -     -     2,939    -     2,939 
   Total Revenue$  47,906 $  160,175 $  2,939 $  -  $  211,020 
       
 Operating Income (Loss)$  (2,006)$  24,935 $  (16)$  (18,045)$  4,868 
 Stock-based compensation$  -     21 $  -     3,313 $  3,334 
 Non-controlling interest ( net income or (loss) )$  (522)$  (4,656)$  (20)$  -  $  (5,198)
       
 Non GAAP measure:     
 Adjusted EBITDA (1)$  9,209 $  51,542 $  1,376 $  (14,733)$  47,394 
       
 Statement of Cash Flows Data:     
 Capital expenditures$  6,368 $  23,692 $  817 $  4,519 $  35,396 
       
       
  
 ATN International, Inc.
 Selected Segment Financial Information
 (In Thousands)
       
 For the six months ended June 30, 2018 is as follows:
       
  US
  Telecom 
International
Telecom
 
Renewable
Energy
 
Corporate and
Other
  *
Total
       
 Statement of Operations Data:     
 Revenue     
   Wireless$  55,983 $  45,060 $  -  $  -  $  101,043 
   Wireline   2,800    106,565    -     -     109,365 
   Renewable Energy   -     -     11,855    -     11,855 
   Total Revenue$  58,783 $  151,625 $  11,855 $  -  $  222,263 
       
 Operating Income (Loss)$  13,065 $  21,211 $  3,863 $  (18,177)$  19,962 
 Stock-based compensation   -     48    57    3,574    3,679 
 Non-controlling interest ( net income or (loss) )$  (1,469)$  (4,836)$  (511)$  -  $  (6,816)
       
 Non GAAP measure:     
 Adjusted EBITDA (1)$  24,677 $  45,410 $  7,565 $  (15,391)$  62,261 
       
 Statement of Cash Flows Data:     
 Capital expenditures$  7,266 $  95,520 $  1,388 $  3,074 $  107,248 
       
       
       
  
 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
  June 30,September 30,December 31,March 31,June 30,
  2018**2018**2018** 2019  2019 
       
 US Telecom Operational Data:     
 Wireless - Total Domestic Base Stations   1,121    1,035    1,045    1,046    1,048 
       
       
 International Telecom Operational Data:     
 Wireline - Voice / Access lines*   167,900    170,400    171,100    171,200    171,200 
 Wireline - Data Subscribers*   114,900    116,800    119,800    123,600    125,400 
 Wireline - Video Subscribers   45,000    43,600    41,700    41,000    39,700 
 Wireless - Subscribers*   308,600    300,600    300,400    293,500    290,300 
       
 * 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 June 30, 2019 and 2018
       
 Three Months Ended June 30, 2019
  US
  Telecom 
  International
Telecom
Renewable
Energy

 Corporate and
Other *

 Total
 
       
 Net income (loss)attributable to ATN International, Inc. stockholders    $  (856)
 Net income attributable to non-controlling interests, net of tax       2,883 
 Income tax expense       (274)
 Other (income) expense, net       255 
 Interest expense, net       746 
 Operating income$  1,521 $  11,057 $  167 $  (9,991)$  2,754 
 Depreciation and amortization   5,551    13,606    638    1,754    21,549 
 (Gain) Loss on disposition of assets   (104)   (7)   -     -     (111)
 Transaction-related charges   -     -     -     28    28 
 Adjusted EBITDA $  6,968 $  24,656 $  805 $  (8,209)$  24,220 
       
       
 Three Months Ended June 30, 2018
  US  Telecom  Renewable EnergyCorporate and Other *Total
 International
Telecom
       
 Net Income (loss) attributable to ATN International, Inc. stockholders    $  7,216 
 Net income attributable to non-controlling interests, net of tax       3,564 
 Income tax benefit       2,088 
 Other expense, net       1,045 
 Interest expense, net       1,840 
 Operating income$  7,841 $  15,571 $  1,927 $  (9,586)$  15,753 
 Depreciation and amortization   6,835    11,794    1,899    1,385    21,913 
 (Gain) loss on disposition of assets   (2,401)   68    -     -     (2,333)
 Loss on damaged assets and other hurricane related charges , net of insurance recovery   -     184    -     -     184 
 Transaction-related charges   410    -     -     28    438 
 Adjusted EBITDA $  12,685 $  27,617 $  3,826 $  (8,173)$  35,955 
       
       
 *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments  
       
 Reconciliation of Net Income to Adjusted EBITDA for the Six Months Ended June 30, 2019 and 2018
       
 Six Months Ended June 30, 2019
  US  Telecom  Renewable
Energy
Corporate and
Other *
Total
 International
Telecom
       
 Net income attributable to ATN International, Inc. stockholders    $  (2,436)
 Net income attributable to non-controlling interests, net of tax       5,198 
 Income tax expense       939 
 Other (income) expense, net       68 
 Interest expense, net       1,099 
 Operating income$  (2,006)$  24,935 $  (16)$  (18,045)$  4,868 
 Depreciation and amortization   11,149    26,621    1,253    3,244    42,267 
 (Gain) Loss on disposition of long-lived assets   66    (14)   139    -     191 
 Transaction-related charges   -     -     -     68    68 
 Adjusted EBITDA $  9,209 $  51,542 $  1,376 $  (14,733)$  47,394 
       
       
 Six Months Ended June 30, 2018
  US
  Telecom 
 Renewable
Energy
Corporate and
Other *
Total
 International
Telecom
       
 Net Income attributable to ATN International, Inc. stockholders    $  1,661 
 Net income attributable to non-controlling interests, net of tax       6,816 
 Income tax expense       6,008 
 Other (income) expense, net       1,798 
 Interest expense, net       3,679 
 Operating income$  13,065 $  21,211 $  3,863 $  (18,177)$  19,962 
 Depreciation and amortization   13,348    23,465    3,673    2,731    43,217 
 (Gain) Loss on disposition of long-lived assets   (2,146)   68    29    -     (2,049)
 Loss on damaged assets and other hurricane related charges, net of insurance recovery   -     666    -     -     666 
 Transaction-related charges   410    -     -     55    465 
 Adjusted EBITDA $  24,677 $  45,410 $  7,565 $  (15,391)$  62,261 
       
       
 *  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 June 30, 2019 and 2018
         
 Three Months Ended June 30, 2019
  US International Renewable  
  Telecom Telecom Energy Total
         
 Revenue$  26,413  $  79,859  $  1,449  $  107,721 
         
 Adjustments for Recurring Revenue:   -      -      -      -  
         
 Recurring Revenue$  26,413  $  79,859  $  1,449  $  107,721 
         
         
 Three Months Ended June 30, 2018
         
  US International Renewable  
  Telecom Telecom Energy Total
         
 Revenue$  30,284  $  81,481  $  6,023  $  117,788 
         
   Less:  USF incremental high cost support funding      (8,181)       (8,181)
   Less: Revenues of US Solar asset portfolio, sold in Q4 2018      -      (4,498)    (4,498)
   Less: Revenues from US Telecom wholesale wireless cell sites sold in Q2 2018   (1,792)    -      -      (1,792)
         
 Recurring Revenue$  28,492  $  73,300  $  1,525  $  103,317 
         
         
 Reconciliation of Revenue to Recurring Revenue for the Six Months Ended June 30, 2019 and 2018
         
 Six Months Ended June 30, 2019
         
  US International Renewable  
  Telecom Telecom Energy Total
         
 Revenue$  47,898  $  160,176  $  2,939  $  211,013 
         
 Adjustments for Recurring Revenue:   -      -      -      -  
         
 Recurring Revenue$  47,898  $  160,176  $  2,939  $  211,013 
         
         
 Six Months Ended June 30, 2018
         
  US International Renewable  
  Telecom Telecom Energy Total
         
 Revenue$  58,783  $  151,625  $  11,855  $  222,263 
         
   Less:  USF incremental high cost support funding   -      (8,181)       (8,181)
   Less: Revenues of US Solar asset portfolio, sold in Q4 2018   -      -      (9,100)    (9,100)
   Less: Revenues from US Telecom wholesale wireless cell sites sold in Q2 2018   (4,052)    -      -      (4,052)
         
 Recurring Revenue$  54,731  $  143,444  $  2,755  $  200,930 
                 

Contact:

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

Justin D. Benincasa
Chief Financial Officer

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Source: GlobeNewswire (July 24, 2019 - 5:15 PM EDT)

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