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ATN Reports Third Quarter 2024 Results; Updates Full-Year 2024 Outlook

“First-to-Fiber” and “Glass & SteelTM” Strategies Yield Year-Over-Year Increases in High-Speed Data Subscriber and Network Reach Metrics  

Q3 2024 Results Highlighted by International Telecom Segment Fixed Revenue Growth, Cost Management Initiatives Supporting Margin Expansion

Updates 2024 Outlook for Revenues, Adjusted EBITDA and Net Debt Ratio
The Company’s expectations for full-year 2024 outlook are as follows:

Earnings Conference Call
Wednesday October 30, 2024, at 10:00 a.m. ET; Webcast Link: https://edge.media-server.com/mmc/p/i66c89ki

BEVERLY, Mass., Oct. 29, 2024 (GLOBE NEWSWIRE) — ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported financial results for the quarter ended September 30, 2024.

Remarks by Brad Martin, ATN Chief Executive Officer

“We reported strong free cash flow from operations in the third quarter, driven by effective cost and net working capital management. Our performance continues to reflect a tale of two segments, with revenues impacted primarily by underperformance in our US Telecom segment related to the conclusion of certain government subsidy programs, slower consumer growth, and delays in enterprise sales and delivery. Based on these dynamics, and compression in market multiples, we recorded a non-cash $35 million goodwill impairment charge during the third quarter.

“In the International Telecom segment, solid fixed revenue gains and business mobility revenue growth offset softness in consumer mobility related to competitive pressures, and we delivered Adjusted EBITDA growth. Additionally, we increased our international post-paid mobile subscriber bases both sequentially and year-over-year.

“To reflect our expectations for near-term operating performance, we are lowering our revenue and Adjusted EBITDA guidance ranges for fiscal 2024 and increasing our expected leverage multiple exiting the year. We are taking strategic actions intended to align our cost structure with current revenue levels, while focusing on margin improvement and cash flow generation. These actions include refocusing efforts on growing our business and carrier customer revenues in the US, strengthening sales execution teams, and maximizing value from deployed assets.

“Longer term, we remain committed to leveraging the value and longevity of our upgraded network while diligently operating the business in an effort to further expand cash flows and position ATN to deliver increased value for shareholders.”

Third Quarter 2024 Financial Results

Consolidated revenues were $178.5 million, down 7% versus $191.0 million in the year-ago quarter. This primarily reflects the overall revenue decline in the US Telecom segment due in part to the anticipated impact of the end of the Emergency Connectivity Fund (ECF) and Affordable Care Program (ACP), and a reduction in construction revenues for the quarter.

Operating loss was $38.4 million in the third quarter versus operating income of $6.8 million in the year-ago quarter. The decrease in operating income was primarily due to a $35.3 million non-cash goodwill impairment charge on certain US Telecom assets, $3.8 million of transaction-related charges, and $2.3 million of restructuring and reorganization expenses.

Net loss attributable to ATN stockholders in the third quarter of 2024 was $32.7 million, or a loss of $2.26 per share compared with a net loss attributable to ATN stockholders of $3.6 million, or $0.31 loss per share, in the year-ago quarter. The year-over-year change was the result of the above-mentioned factors that increased the operating loss combined with an increase in interest expense. In all periods, the loss per share calculation includes the impact of preferred dividends that are not included in the net loss calculation.

Adjusted EBITDA1 was $45.7 million in the third quarter of 2024, a decrease from $47.8 million in the year-ago quarter primarily due to lower US Telecom revenues.

Segment Operating Results (in Thousands)

The Company recorded financial results in three categories: (i) International Telecom; (ii) US Telecom; and (iii) Corporate and Other*.

For Three Months Ended September 30, 2024 and 2023
                 
    2024     2023     2024     2023     2024     2023     2024     2023  
  International International US US Corporate and Corporate and Total Total
  Telecom Telecom Telecom Telecom Other* Other* ATN ATN
Total Revenue: $ 94,281   $ 93,878   $ 84,170   $ 97,158   $   $   $ 178,451   $ 191,036  
Mobility   26,809     27,791     706     946             27,515     28,737  
Fixed   61,759     59,983     51,015     58,342             112,774     118,325  
Carrier Services   3,272     3,441     29,430     32,319             32,702     35,760  
Construction           203     2,038             203     2,038  
All other   2,441     2,663     2,816     3,513             5,257     6,176  
                 
Operating Income (Loss) $ 12,853   $ 12,800   $ (44,333 ) $ 3,018   $ (6,878 ) $ (8,981 ) $ (38,358 ) $ 6,837  
EBITDA** $ 31,518   $ 27,394   $ (23,912 ) $ 25,299   $ (6,674 ) $ (8,363 ) $ 932   $ 44,330  
Adjusted EBITDA1 $ 32,248   $ 27,502   $ 17,692   $ 26,860   $ (4,270 ) $ (6,516 ) $ 45,670   $ 47,846  
Capital Expenditures*** $ 10,489   $ 18,744   $ 13,070   $ 18,445   $ 282   $   $ 23,841   $ 37,189  
                 
                 
For Nine Months Ended September 30, 2024 and 2023
                 
    2024     2023     2024     2023     2024     2023     2024     2023  
  International International US US Corporate and Corporate and Total Total
  Telecom Telecom Telecom Telecom Other* Other* ATN ATN
Total Revenue: $ 282,697   $ 276,267   $ 265,830   $ 286,983   $   $   $ 548,527   $ 563,250  
Mobility   79,657     80,754     2,312     3,081             81,969     83,835  
Fixed   185,295     178,546     161,392     175,346             346,687     353,892  
Carrier Services   10,481     11,011     89,539     95,978             100,020     106,989  
Construction           2,609     3,648             2,609     3,648  
All other   7,264     5,956     9,978     8,930             17,242     14,886  
                 
Operating Income (Loss) $ 56,944   $ 41,177   $ (42,852 ) $ (3,719 ) $ (23,559 ) $ (27,547 ) $ (9,467 ) $ 9,911  
EBITDA** $ 108,512   $ 84,807   $ 18,361   $ 67,126   $ (23,229 ) $ (25,517 ) $ 103,644   $ 126,416  
Adjusted EBITDA1 $ 94,808   $ 85,089   $ 60,313   $ 72,443   $ (17,260 ) $ (19,097 ) $ 137,861   $ 138,435  
Capital Expenditures*** $ 39,440   $ 57,610   $ 44,371   $ 69,030   $ 1,860   $   $ 85,671   $ 126,640  
                 

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments.
** See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure
***Excludes government capital program amounts disbursed, and amounts received.

ATN’s Strategic Plan and Key Performance Indicators

The Company is in the final quarter of its three-year strategic plan initiated in 2021 to accelerate investments in its high-speed data footprint and grow high speed broadband subscribers. During this final year of the plan, the Company is transitioning away from a period of heavy investments to focus more on margin and cash flow improvement. The Company believes these efforts will allow it to improve returns to shareholders.

Operating Metrics

Operating Metrics
             
  2024 2024 2024 2023 2023 Q3 2024
  Q3 Q2 Q1 Q4 Q3  vs. Q3 2023
             
High-Speed Data* Broadband Homes Passed 399,500   396,100   386,300   367,200   333,500   20 %
High-Speed Data* Broadband Customers 141,500   142,000   138,700   135,900   132,900   6 %
             
Broadband Homes Passed 798,400   803,300   789,700   768,900   746,600   7 %
Broadband Customers 206,400   213,000   214,100   214,400   213,900   -4 %
             
Fiber Route Miles 11,901   11,728   11,692   11,655   11,575   3 %
             
International Mobile Subscribers            
Pre-Paid 336,400   339,000   346,400   350,700   345,500   -3 %
Post-Paid 58,700   57,900   57,300   57,000   55,600   6 %
Total 395,100   396,900   403,700   407,700   401,100   -1 %
             
Blended Churn 3.47 % 3.44 % 3.34 % 3.33 % 3.76 %  
             

*High-Speed Data is defined as download speeds 100 Mbps or greater and High-Speed Data Broadband Customers as subscribers connected to our high-speed networks regardless of the speed of plan selected.

Note: Data may differ from prior periods to reflect more accurate data and/or changes in calculation methodology and process.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash as of September 30, 2024, was $116.8 million and total debt was $568.9 million, versus $62.2 million of cash, cash equivalents and restricted cash and $516.9 million of total debt on December 31, 2023.

Net cash provided by operating activities was $97.4 million for the nine months ended September 30, 2024, compared with net cash provided by operating activities of $89.5 million in the prior year period.   

Capital expenditures were $85.7 million net of $71.8 million of reimbursable capital expenditures for the nine months ended September 30, 2024, versus $126.6 million, net of $14.3 million of reimbursable capital expenditures in the prior year period.

Quarterly Dividends and Stock Repurchases

Quarterly dividends of $0.24 per share were paid on October 4, 2024 on all common shares outstanding to stockholders of record as of September 30, 2024.

Updates Full-Year 2024 Guidance and Outlook

The Company has updated its revenue, adjusted EBITDA and net debt ratio guidance ranges and reiterated its capital expenditure guidance range for the full year ended December 31, 2024, as follows:

Revenue (excluding construction revenue) $720 million to $730 million (previously $730 million to $750 million) Full-year 2024
Adjusted EBITDA1 $182 million to $188 million (previously $190 million to $200 million) Full-year 2024
Capital Expenditures $100 million to $110 million Full-year 2024
Net Debt Ratio3 2.3x to 2.6x (previously 2.25x to 2.50x) Exiting 2024

Longer term, the Company continues to prioritize increasing cash flow and driving positive returns through realized efficiencies that leverage ATN’s high-quality assets. In 2025, the Company expects internally funded capital investments to be in the range of 10% to 15% of revenues and supported by cash flow from operations.

For the Company’s full-year 2024 outlook for Adjusted EBITDA and Net Debt Ratio, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA and the description of the calculation of Net Debt Ratio.

Conference Call Information

Call Date: Wednesday, October 30, 2024
Call Time: 10:00 a.m. ET
Webcast Link: https://edge.media-server.com/mmc/p/i66c89ki
Live Call Participant Link: https://register.vevent.com/register/BIbf889f89a57e4183ba9dbe6725fa759d

Webcast Link Instructions
You can listen to a live audio webcast of the conference call by visiting the “Webcast Link” above or the “Events & Presentations” section of the Company’s Investor Relations website at https://ir.atni.com/events-and-presentations. A replay of the conference call will be available at the same locations beginning at approximately 1:00 pm ET on the same day. The Company also will provide an investor presentation as a supplement to the call on the “Events & Presentations” section of its Investor Relations website.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a leading provider of digital infrastructure and communications services for all. The Company operates in the United States and internationally, including the Caribbean region, with a focus on rural and remote markets with a growing demand for infrastructure investments. The Company’s operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential, business, and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and (ii) carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities. For more information, please visit www.atni.com.

Use of Non-GAAP Financial Measures and Definition of Terms

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

EBITDA is defined as Operating income (loss) before depreciation and amortization expense.

Adjusted EBITDA is defined as Operating income (loss) before depreciation and amortization expense, transaction-related charges, restructuring and reorganization expenses, one-time impairment or special charges, non-cash stock-based compensation, and the gain (loss) on disposition of assets and transfers.

Net Debt is defined as total debt less cash and cash equivalents and restricted cash.

Net Debt Ratio is defined as Net Debt divided by the sum of the trailing four quarters Adjusted EBITDA at the measurement date.

The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company’s core operating results and enhances the usefulness of comparing such performance with prior periods. Management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release. While non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating the Company’s own operating results over different periods of time, the Company urges investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains forward-looking statements relating to, among other matters, the Company’s future financial performance, business goals and objectives, and results of operations, expectations regarding its strategic investment plan, its future revenues, operating income, operating margin, cash flows, network and operating costs, EBITDA, Adjusted EBITDA, Net Debt, Net Debt Ratio, cost management initiatives, and capital investments; demand for the Company’s services and industry trends; the timing of revenue, the Company’s liquidity; the expansion of the Company’s customer base and networks; receipt of certain government grants and management’s plans, expectations and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results. Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1) the general performance of the Company’s operations, including operating margins, revenues, capital expenditures, the impact of cost savings initiatives, the ability to expand its carrier and business customer sales, and the retention of and future growth of the Company’s subscriber base and ARPU; (2) the Company’s reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to the Company’s network infrastructure; (3) the Company’s ability to satisfy the needs and demands of the Company’s major carrier customers; (4) the Company’s ability to realize expansion plans for customer growth on its existing assets; (5) the adequacy and expansion capabilities of the Company’s network capacity and customer service system to support the Company’s customer growth; (6) the Company’s ability to efficiently and cost-effectively upgrade the Company’s networks and information technology platforms to address rapid and significant technological changes in the telecommunications industry; (7) the Company’s continued access to capital and credit markets on terms it deems favorable; (8) government subsidy program availability and regulation of the Company’s businesses, which may impact the Company’s telecommunications licenses, the Company’s revenue and the Company’s operating costs; (9) the Company’s ability to successfully transition its US Telecom business away from wholesale mobility to other carrier, enterprise, and consumer-based services; (10) ongoing risk of an economic downturn, political, geopolitical and other risks and opportunities facing the Company’s operations, including those resulting from the continued inflation and other macroeconomic headwinds including increased costs and supply chain disruptions; (11) management transitions, and the loss of, or an inability to recruit skilled personnel in the Company’s various jurisdictions, including key members of management; (12) the Company’s ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (13) the occurrence of weather events and natural catastrophes and the Company’s ability to secure the appropriate level of insurance coverage for these assets; and the impact of such events on the timing of project implementation and corresponding revenue, and (14) increased competition. These and other additional factors that may cause actual future events and results to differ materially from the events and results indicated in the forward-looking statements above are set forth more fully under Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 15, 2024, and the other reports the Company files from time to time with the SEC. The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors that may affect such forward-looking statements, except as required by law.

Contact  
   
Michele Satrowsky Adam Rogers
Corporate Treasurer Investor Relations
ATN International, Inc. Sharon Merrill Advisors, Inc.
978-619-1300 ATNI@investorrelations.com 
       
 
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
       
  September 30,   December 31,
  2024     2023  
Assets:      
Cash and cash equivalents $ 100,689     $ 49,225  
Restricted cash   16,075       12,942  
Customer receivable   7,924       7,249  
Other current assets   200,918       211,856  
       
Total current assets   325,606       281,272  
       
Property, plant and equipment, net   1,049,002       1,080,659  
Operating lease right-of-use assets   99,231       99,335  
Customer receivable – long term   41,925       45,676  
Goodwill and other intangible assets, net   132,042       173,008  
Other assets   103,575       103,764  
       
Total assets $ 1,751,381     $ 1,783,714  
       
Liabilities, redeemable non-controlling interests and stockholders’ equity:      
Current portion of long-term debt $ 7,413     $ 24,290  
Current portion of customer receivable credit facility   7,935       7,110  
Taxes payable   10,685       10,876  
Current portion of lease liabilities   15,310       15,164  
Other current liabilities   227,087       235,754  
       
Total current liabilities   268,430       293,194  
       
Long-term debt, net of current portion $ 561,493     $ 492,580  
Customer receivable credit facility, net of current portion   38,274       38,943  
Deferred income taxes   1,878       19,775  
Lease liabilities   77,033       76,936  
Other long-term liabilities   135,067       138,566  
       
Total liabilities   1,082,175       1,059,994  
       
Redeemable non-controlling interests   75,083       85,917  
       
Stockholders’ equity:      
Total ATN International, Inc.’s stockholders’ equity   490,795       541,073  
Non-controlling interests   103,328       96,730  
       
Total stockholders’ equity   594,123       637,803  
       
Total liabilities, redeemable non-controlling interests and stockholders’ equity $ 1,751,381     $ 1,783,714  
               
          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,
    2024       2023       2024       2023  
Revenues:              
Communications services $ 174,422     $ 184,601     $ 533,055     $ 547,484  
Construction   203       2,038       2,609       3,648  
Other   3,826       4,397       12,863       12,118  
Total revenue   178,451       191,036       548,527       563,250  
               
Operating expenses (excluding depreciation and amortization unless otherwise indicated):              
Cost of services and other   78,973       80,367       235,499       237,125  
Cost of construction revenue   205       2,031       2,588       3,635  
Selling, general and administrative   53,601       60,792       172,580       184,055  
Stock-based compensation   1,831       1,956       6,521       6,473  
Transaction-related charges   3,791       45       3,809       496  
Restructuring and reorganization expenses   2,345       1,383       3,535       4,640  
Depreciation   37,299       34,370       107,196       106,991  
Amortization of intangibles from acquisitions   1,991       3,124       5,916       9,514  
(Gain) loss on disposition of assets and transfers   1,504       132       (14,919 )     410  
Goodwill impairment   35,269             35,269        
Total operating expenses   216,809       184,200       557,994       553,339  
               
Operating income (loss)   (38,358 )     6,836       (9,467 )     9,911  
               
Other income (expense):              
Interest expense, net   (12,483 )     (11,309 )     (35,753 )     (30,338 )
Other income (expense)   (645 )     213       (1,052 )     2,623  
Other income (expense), net   (13,128 )     (11,096 )     (36,805 )     (27,715 )
               
Loss before income taxes   (51,486 )     (4,260 )     (46,272 )     (17,804 )
Income tax benefit   (12,035 )     (542 )     (10,213 )     (6,369 )
               
Net loss   (39,451 )     (3,718 )     (36,059 )     (11,435 )
               
Net loss attributable to non-controlling interests, net   6,760       134       6,059       2,733  
               
Net loss attributable to ATN International, Inc. stockholders $ (32,691 )   $ (3,584 )   $ (30,000 )   $ (8,702 )
               
Net loss per weighted average share attributable to ATN International, Inc. stockholders:              
               
Basic $ (2.26 )   $ (0.31 )   $ (2.24 )   $ (0.80 )
               
Diluted $ (2.26 )   $ (0.31 )   $ (2.24 )   $ (0.80 )
               
Weighted average common shares outstanding:              
Basic   15,114       15,601       15,268       15,666  
Diluted   15,114       15,601       15,268       15,666  
 
Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statements
(in Thousands)
   
   Nine Months Ended September 30,
    2024       2023  
       
Net loss $ (36,059 )   $ (11,435 )
Depreciation   107,196       106,991  
Amortization of intangibles from acquisitions   5,916       9,514  
Provision for doubtful accounts   4,209       4,014  
Amortization of debt discount and debt issuance costs   1,915       1,806  
(Gain) Loss on disposition of assets and transfers   (14,919 )     410  
Stock-based compensation   6,521       6,472  
Deferred income taxes   (14,409 )     (9,452 )
Loss on pension settlement         369  
Gain on equity investments   (484 )     (2,752 )
Loss on extinguishment of debt   760        
Goodwill impairment   35,269        
Decrease in customer receivable   3,076       1,185  
Change in prepaid and accrued income taxes   (3,164 )     3,602  
Change in other operating assets and liabilities   1,599       (21,240 )
       
Net cash provided by operating activities   97,426       89,484  
       
Capital expenditures   (85,672 )     (126,640 )
Government capital programs:      
Amounts disbursed   (71,849 )     (14,261 )
Amounts received   72,531       16,065  
Net proceeds from sale of assets   17,910        
Purchases and sales of strategic investments   790       (1,055 )
Purchases and sales of investments   505        
Acquisition of business         1,314  
Other   (573 )      
       
Net cash used in investing activities   (66,358 )     (124,577 )
       
Dividends paid on common stock   (11,047 )     (9,918 )
Distributions to non-controlling interests   (2,226 )     (1,447 )
Finance lease payments   (1,357 )     (932 )
Term loan – borrowings   300,000       130,000  
Term loan – repayments   (239,430 )     (3,532 )
Payment of debt issuance costs   (6,548 )     (3,708 )
Revolving credit facilities – borrowings   90,000       126,893  
Revolving credit facilities – repayments   (94,002 )     (174,292 )
Proceeds from customer receivable credit facility   5,740       4,300  
Repayment of customer receivable credit facility   (5,669 )     (4,998 )
Purchases of common stock – stock-based compensation   (1,932 )     (1,473 )
Purchases of common stock – share repurchase plan   (10,000 )     (11,679 )
Repurchases of non-controlling interests, net         (762 )
       
Net cash provided by financing activities   23,529       48,452  
       
Net change in total cash, cash equivalents and restricted cash   54,597       13,359  
       
Total cash, cash equivalents and restricted cash, beginning of period   62,167       59,728  
       
Total cash, cash equivalents and restricted cash, end of period $ 116,764     $ 73,087  
 
Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
         
For the three months ended September 30, 2024 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
         
Statement of Operations Data:        
Revenue        
Mobility        
Business $ 5,007   $ 68   $   $ 5,075  
Consumer   21,802     638         22,440  
Total $ 26,809   $ 706   $   $ 27,515  
         
Fixed        
Business $ 18,692   $ 29,575   $   $ 48,267  
Consumer   43,067     21,440         64,507  
Total $ 61,759   $ 51,015   $   $ 112,774  
         
Carrier Services $ 3,272   $ 29,430   $   $ 32,702  
Other   1,175     255         1,430  
         
Total Communications Services $ 93,015   $ 81,406   $   $ 174,421  
         
Construction $   $ 203   $   $ 203  
         
Managed services $ 1,266   $ 2,561   $   $ 3,827  
Total Other $ 1,266   $ 2,561   $   $ 3,827  
         
Total Revenue $ 94,281   $ 84,170   $   $ 178,451  
         
Depreciation $ 18,414   $ 18,681   $ 204   $ 37,299  
Amortization of intangibles from acquisitions $ 251   $ 1,740   $   $ 1,991  
Total operating expenses $ 81,428   $ 128,503   $ 6,878   $ 216,809  
Operating income (loss) $ 12,853   $ (44,333 ) $ (6,878 ) $ (38,358 )
Net (income) loss attributable to non-controlling interests $ (1,893 ) $ 8,653   $   $ 6,760  
         
Non GAAP measures:        
EBITDA (2) $ 31,518   $ (23,912 ) $ (6,674 ) $ 932  
Adjusted EBITDA (1) $ 32,248   $ 17,692   $ (4,270 ) $ 45,670  
         
Balance Sheet Data (at September 30, 2024):        
Cash, cash equivalents and restricted cash $ 52,043   $ 62,772   $ 1,949   $ 116,764  
Total current assets   149,987     167,440     8,179     325,606  
Fixed assets, net   468,559     573,997     6,446     1,049,002  
Total assets   695,127     967,028     89,226     1,751,381  
Total current liabilities   96,384     140,689     31,357     268,430  
Total debt, including current portion   59,824     316,672     192,409     568,905  
         
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
     
Table 4 (continued)
         
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
         
For the three months ended September 30, 2023 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
Statement of Operations Data:        
Revenue        
Mobility        
Business $ 3,818   $ 129   $   $ 3,947  
Consumer   23,973     817         24,790  
Total $ 27,791   $ 946   $   $ 28,737  
         
Fixed        
Business $ 18,016   $ 35,680   $   $ 53,696  
Consumer   41,967     22,662         64,629  
Total $ 59,983   $ 58,342   $   $ 118,325  
         
Carrier Services $ 3,441   $ 32,319   $   $ 35,760  
Other   1,236     544         1,780  
         
Total Communications Services $ 92,451   $ 92,151   $   $ 184,602  
         
Construction $   $ 2,038   $   $ 2,038  
         
Managed services $ 1,427   $ 2,969   $   $ 4,396  
         
Total Other $ 1,427   $ 2,969   $   $ 4,396  
         
Total Revenue $ 93,878   $ 97,158   $   $ 191,036  
         
Depreciation $ 14,354   $ 19,397   $ 618   $ 34,369  
Amortization of intangibles from acquisitions $ 240   $ 2,884   $   $ 3,124  
Total operating expenses $ 81,078   $ 94,140   $ 8,981   $ 184,199  
Operating income (loss) $ 12,800   $ 3,018   $ (8,981 ) $ 6,837  
Net (income) loss attributable to non-controlling interests $ (1,794 ) $ 1,928   $   $ 134  
         
Non GAAP measures:        
EBITDA (2) $ 27,394   $ 25,299   $ (8,363 ) $ 44,330  
Adjusted EBITDA (1) $ 27,502   $ 26,860   $ (6,516 ) $ 47,846  
         
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
         
Table 4 (continued)
         
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
         
For the nine months ended September 30, 2024 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
         
Statement of Operations Data:        
Revenue        
Mobility        
Business $ 14,747   $ 209   $   $ 14,956  
Consumer   64,910     2,103         67,013  
Total $ 79,657   $ 2,312   $   $ 81,969  
         
Fixed        
Business $ 55,939   $ 95,359   $   $ 151,298  
Consumer   129,356     66,033         195,389  
Total $ 185,295   $ 161,392   $   $ 346,687  
         
Carrier Services $ 10,481   $ 89,539   $   $ 100,020  
Other   3,038     1,341         4,379  
         
Total Communications Services $ 278,471   $ 254,584   $   $ 533,055  
         
Construction $   $ 2,609   $   $ 2,609  
         
Managed services $ 4,226   $ 8,637   $   $ 12,863  
Total Other $ 4,226   $ 8,637   $   $ 12,863  
         
Total Revenue $ 282,697   $ 265,830   $   $ 548,527  
         
Depreciation $ 50,814   $ 56,052   $ 330   $ 107,196  
Amortization of intangibles from acquisitions $ 754   $ 5,161   $   $ 5,915  
Total operating expenses $ 225,753   $ 308,682   $ 23,559   $ 557,994  
Operating income (loss) $ 56,944   $ (42,852 ) $ (23,559 ) $ (9,467 )
Net (income) loss attributable to non-controlling interests $ (8,467 ) $ 14,526   $   $ 6,059  
         
Non GAAP measures:        
EBITDA (2) $ 108,512   $ 18,361   $ (23,229 ) $ 103,644  
Adjusted EBITDA (1) $ 94,808   $ 60,313   $ (17,260 ) $ 137,861  
         
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
 
Table 4 (continued)
         
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
         
For the nine months ended September 30, 2023 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
         
Statement of Operations Data:        
Revenue        
Mobility        
Business $ 11,484   $ 415   $   $ 11,899  
Consumer   69,270     2,666         71,936  
Total $ 80,754   $ 3,081   $   $ 83,835  
         
Fixed        
Business $ 52,602   $ 107,494   $   $ 160,096  
Consumer   125,944     67,852         193,796  
Total $ 178,546   $ 175,346   $   $ 353,892  
         
Carrier Services $ 11,011   $ 95,978   $   $ 106,989  
Other   2,084     684         2,768  
         
Total Communications Services $ 272,395   $ 275,089   $   $ 547,484  
         
Construction $   $ 3,648   $   $ 3,648  
         
Managed services $ 3,872   $ 8,246   $   $ 12,118  
         
Total Other $ 3,872   $ 8,246   $   $ 12,118  
         
Total Revenue $ 276,267   $ 286,983   $   $ 563,250  
         
Depreciation $ 42,646   $ 62,315   $ 2,030   $ 106,991  
Amortization of intangibles from acquisitions $ 984   $ 8,530   $   $ 9,514  
Total operating expenses $ 235,090   $ 290,702   $ 27,547   $ 553,339  
Operating income (loss) $ 41,177   $ (3,719 ) $ (27,547 ) $ 9,911  
Net (income) loss attributable to non-controlling interests $ (5,650 ) $ 8,383   $   $ 2,733  
         
Non GAAP measures:        
EBITDA (2) $ 84,807   $ 67,126   $ (25,517 ) $ 126,416  
Adjusted EBITDA (1) $ 85,089   $ 72,443   $ (19,097 ) $ 138,435  
         
Balance Sheet Data (at December 31, 2023):        
Cash, cash equivalents and restricted cash $ 26,354   $ 33,574   $ 2,239   $ 62,167  
Total current assets   107,469     162,768     11,035     281,272  
Fixed assets, net   481,911     593,833     4,915     1,080,659  
Total assets   672,171     1,019,924     91,619     1,783,714  
Total current liabilities   86,540     169,297     37,357     293,194  
Total debt, including current portion   64,254     293,607     159,009     516,870  
         
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
 
Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
         
For the three months ended September 30, 2024 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
         
         
Operating income (loss) $ 12,853   $ (44,333 ) $ (6,878 ) $ (38,358 )
Depreciation expense   18,414     18,681     204     37,299  
Amortization of intangibles from acquisitions   251     1,740         1,991  
EBITDA $ 31,518   $ (23,912 ) $ (6,674 ) $ 932  
         
Stock-based compensation   102     157     1,571     1,830  
Restructuring and reorganization expenses   299     1,167     879     2,345  
Transaction-related charges       3,789     1     3,790  
(Gain) Loss on disposition of assets and transfers   329     1,222     (47 )   1,504  
Goodwill impairment       35,269         35,269  
ADJUSTED EBITDA $ 32,248   $ 17,692   $ (4,270 ) $ 45,670  
         
         
For the three months ended September 30, 2023 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
         
         
Operating income (loss) $ 12,800   $ 3,018   $ (8,981 ) $ 6,837  
Depreciation expense   14,354     19,397     618     34,369  
Amortization of intangibles from acquisitions   240     2,884         3,124  
EBITDA $ 27,394   $ 25,299   $ (8,363 ) $ 44,330  
         
Stock-based compensation   130     23     1,802     1,955  
Restructuring and reorganization expenses       1,383         1,383  
Transaction-related charges           45     45  
(Gain) Loss on disposition of assets and transfers   (22 )   155         133  
ADJUSTED EBITDA $ 27,502   $ 26,860   $ (6,516 ) $ 47,846  
         
Table 5 (continued)
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
         
For the nine months ended September 30, 2024 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
         
         
Operating income (loss) $ 56,944   $ (42,852 ) $ (23,559 ) $ (9,467 )
Depreciation expense   50,814     56,052     330     107,196  
Amortization of intangibles from acquisitions   754     5,161         5,915  
EBITDA $ 108,512   $ 18,361   $ (23,229 ) $ 103,644  
         
Stock-based compensation   319     484     5,718     6,521  
Restructuring and reorganization expenses   1,489     1,167     879     3,535  
Transaction-related charges       3,789     20     3,809  
(Gain) Loss on disposition of assets and transfers   (15,512 )   1,243     (648 )   (14,917 )
Goodwill impairment       35,269         35,269  
ADJUSTED EBITDA $ 94,808   $ 60,313   $ (17,260 ) $ 137,861  
         
         
For the nine months ended September 30, 2023 is as follows:
         
  International Telecom US Telecom Corporate and Other * Total
         
         
Operating income (loss) $ 41,177   $ (3,719 ) $ (27,547 ) $ 9,911  
Depreciation expense   42,646     62,315     2,030     106,991  
Amortization of intangibles from acquisitions   984     8,530         9,514  
EBITDA $ 84,807   $ 67,126   $ (25,517 ) $ 126,416  
         
Stock-based compensation   307     109     6,057     6,473  
Restructuring and reorganization expenses       4,640         4,640  
Transaction-related charges       133     363     496  
(Gain) Loss on disposition of assets and transfers   (25 )   435         410  
ADJUSTED EBITDA $ 85,089   $ 72,443   $ (19,097 ) $ 138,435  
       
Table 6
       
ATN International, Inc.
Non GAAP Measure – Net Debt Ratio
(in Thousands)
       
       
  September 30,   December 31,
    2024     2023  
       
       
Current portion of long-term debt * $ 7,413     $ 24,290  
Long-term debt, net of current portion *   561,493       492,580  
       
Total debt $ 568,906     $ 516,870  
       
Less: Cash, cash equivalents and restricted cash   116,764       62,167  
       
Net Debt $ 452,142     $ 454,703  
       
       
Adjusted EBITDA – for the four quarters ended $ 188,877     $ 189,451  
       
       
Net Debt Ratio   2.39       2.40  
       
       
* Excludes Customer receivable credit facility
 

_____________________________________
1
See Table 5 for reconciliation of Operating Income to Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP measures.
2 For the Company’s Adjusted EBITDA Guidance, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measure or reconciliations to such GAAP financial measure, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA
3 Please see “Use of Non-GAAP Financial Measures” below for a full definition of Net Debt Ratio.


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