Market Overview

ATN Reports Third Quarter 2017 Results

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Third Quarter Financial Highlights:

  • Revenues: $122.1 million
  • Adjusted EBITDA1, which excludes the loss on damaged assets and other hurricane related charges was $37.7 million
  • Operating loss of $19.5 million
  • Operating income excluding hurricane related charges2 is $17.0 million.
  • Net loss attributable to ATN's stockholders: $24.8 million, or $1.53 loss per share
  • Net income attributable to ATN's stockholders excluding hurricane related charges2 is $11.9 million, or $0.73 per share
  • Cash flow from operating activities was $121.4 million for the first nine months of 2017

BEVERLY, Mass., Oct. 30, 2017 (GLOBE NEWSWIRE) -- ATN (NASDAQ:ATNI) today reported results for the third quarter and nine months ended September 30, 2017.  Unless otherwise indicated, the discussion of the Company's results is focused on its continuing operations, and comparisons are to the same period in the prior year.

Business Review and Outlook

"ATN's operating performance in the third quarter was broadly in line with our expectations excluding the impact of the September hurricanes on the U.S. Virgin Islands," said Michael Prior, Chief Executive Officer.  "As previously disclosed, we had anticipated a year-over-year decline in wireless revenues resulting from contractual pricing changes in our domestic wholesale wireless business.  That was the case in the third quarter, but we were pleased to see traffic was modestly better than we had expected in this seasonally stronger period.  Approximately half of the decline in wireline revenues from last year related to the sale of our U.S. wireline business this past March.  The other half of the decline reflected the impact from Hurricanes Irma and Maria, which significantly impacted the customers and damaged the network of Viya, our Virgin Islands subsidiary, in September.

"We could not be prouder of Viya's employees and leadership team for the work they have done before, during and after the storm.  They have been instrumental in leading, coordinating and partnering with local and federal authorities and charitable organizations on many community relief efforts.  Among other things Viya has been coordinating damage assessments with the local power authority, providing free wireless hot spots to the community and restoring critical services.  These recovery efforts have been supported by numerous engineers and technical and other employees from within the ATN group.

"We have been able to restore wireless coverage to a large part of St. Thomas and expect to bring up wireless service on St. Croix over the next few weeks.  St. John, the smallest of the main islands, is being serviced with hot spots.  Our damage assessment has been hampered by the still devastating island conditions and lack of commercial power and therefore is not yet complete.  We currently estimate that approximately one third of our wireline plant sustained significant damage, but only a very small percentage of our wireline customers are currently receiving service, due to the lack of commercial power as well as the damage to many residences.  Until commercial electricity is restored to more of the territory, it is difficult to assess the timeline for restoring wireline services, which currently comprise most of our revenue in the USVI.  We do have insurance for named storms which compensates us for replacement costs of damaged property, extra expenses and business interruption up to a net coverage of approximately $34 million, but we believe total losses for these items will exceed this level.  Additionally, from a financial reporting standpoint, we do not anticipate the positive offset from insurance proceeds to be recognized until 2018.  We expect that the effect on our Adjusted EBITDA of the loss of wireline service revenues from our U.S. Virgin Island properties will be most pronounced in the fourth quarter of this year, with progressive improvement expected over the following two to three quarters.

"In the third quarter, we made progress in our renewable energy venture in India, Vibrant Energy.  We received final regulatory approval for an 11MW (DC) project installation, and we have three additional projects with a combined 29MW (DC) completed and producing power to the grid, but we are awaiting regulatory approval to begin billing our identified customers.

"We completed over $10 million of repurchases of the Company's common stock during the third quarter as part of the previously announced shift in our capital allocation strategy.  Additionally, we made a minority investment in a newly formed Australian telecommunications infrastructure company, and we continue to evaluate other opportunities to put our significant balance sheet capacity to work," Mr. Prior concluded.

Third Quarter 2017 Financial Results

The Company intends to provide an updated estimate of the loss on damaged assets and other hurricane related charges in the U.S. Virgin Islands with its Quarterly Report on Form 10-Q for the third quarter 2017 to be filed with the SEC as its assessment of the hurricanes impact on operations is still ongoing.

Third quarter 2017 revenues were $122.1 million, a 12% decrease from the $138.8 million reported for the third quarter of 2016.  Revenue decreases for the quarter include $7.3 million from the sale of our U.S. Wireline and St. Maarten businesses in the first quarter of the year and the sale of the British Virgin Island business this quarter, $4.4 million in service disruption credits issued to customers as a result of the hurricanes, and declines in U.S. Telecom revenues mainly related to lower contractual rates.  Adjusted EBITDA1 for the third quarter was $37.7 million, 19% below the prior year period, primarily associated with the foregoing revenue decreases.  Operating loss for the third quarter was $19.5 million due to expenses and charges related to the hurricanes as well as other revenue declines.  Operating income excluding hurricane related charges2 for the third quarter was $17.0 million.

Net loss attributable to ATN's stockholders for the third quarter was $24.8 million or $1.53 loss per share, a decrease over the prior year net income of $7.2 million or $0.44 income per share.  Net Income excluding hurricane related charges2 for the third quarter was $11.9 million, or $0.73 per share.

Revenues for the first nine months of 2017 were $373.5 million, a 14% increase from the $328.5 million reported for the same period in 2016.  Revenue increases for this period are mostly due to the impact of the 2016 acquisitions in Bermuda and the U.S. Virgin Islands.  Adjusted EBITDA1 for the first nine months of 2017 was $118.0 million, an increase of 3% from the prior year.  The operating income of $14.1 million for the first nine months of 2017 includes $36.6 million of charges related to hurricane damages this quarter without the benefit of any offset from related insurance claim proceeds.  Operating income excluding hurricane related charges2 for the first nine months of 2017 is $50.7 million.  Net loss attributable to ATN stockholders was $12.0 million or $0.74 loss per share, as compared to the net income attributable to ATN stockholders of $10.2 million and $0.63 per share in the prior year period. Net income excluding hurricane related charges2 for the first nine months of 2017 was $24.6 million or $1.52 per diluted share.

Third Quarter 2017 Operating Highlights

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

U.S. Telecom

U.S. Telecom revenues consist mainly of wireless revenues from our voice and data wholesale roaming operations and our smaller retail operations in the Southwestern United States, as well as enterprise and wholesale wireline revenues.  Total U.S. Telecom segment revenues were $40.1 million in the third quarter of 2017, a 16% decrease from the $47.6 million reported in the third quarter of 2016.  U.S. Wireless revenues declined 8% to $36.8 million compared with $40.1 million in the prior year quarter, due mostly to lower contractual wholesale roaming rates and revenue caps.   U.S. Wireline revenues decreased to $2.3 million from $6.9 million in the prior year primarily as a result the sale of our Northeastern U.S. wireline business in early March 2017. The Company ended the third quarter of 2017 with 1,061 domestic base stations in service compared to 926 at the end of last year's third quarter. 

U.S. Telecom Adjusted EBITDA1 of $21.7 million in the third quarter of 2017 decreased 11% compared to the prior year's $24.3 million.  The decrease was mainly due to the reduction in wireless revenues as previously noted partially offset by reductions in wireless operating expenses.   

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 including the U.S. Virgin Islands. International Telecom revenues were $77.0 million in the third quarter of 2017, a 10% decrease from the $85.3 million reported in the third quarter of 2016. In addition to the impact of the sale of our businesses in St. Maarten and the British Virgin Islands earlier in 2017, $4.4 million of service credits were issued for the month of September to customers impacted by hurricane outages in the U.S. Virgin Islands. 

International Telecom Adjusted EBITDA1 of $20.3 million in the third quarter decreased 18% from $24.7 million in the prior year period.  The decrease is the primarily the result of the revenue impacts from service credits  following the hurricanes in the U.S. Virgin Islands, but this figure excludes the loss on damaged assets and other hurricane related charges.    

Renewable Energy

Renewable Energy segment revenues are generated principally by the sale of energy and solar renewable energy credits from our 28 commercial solar projects in the United States.  For the third quarter of 2017, revenues from our renewable energy business were $5.0 million, down 15% from the $5.9 million in the prior year mostly due to the scheduled expiration of certain renewable energy credits.  Adjusted EBITDA1 for the Renewable Energy segment was $2.6 million in the third quarter, down $1.4 million from the prior year quarter due to the lower revenue and increased operating expenses from the ramp up of our solar business in India ahead of the offsetting revenue.   

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents at September 30, 2017 were $224.6 million.  In addition, the Company held $7.9 million of short-term investments and $17.0 million of restricted cash.  Net cash provided by operating activities was $121.4 million for the first nine months of 2017, compared with $92.1 million for the first nine months of 2016.  The increase in net cash provided by operating activities is due to the 2017 growth in revenue as a result of the 2016 acquisitions in the U.S. Virgin Islands and Bermuda, in addition to the net impact of 2016 transaction-related charges and impairments of assets, and changes in working capital.  During the first nine months of 2017, the Company used cash of $32.2 million for investments in new assets and businesses after netting proceeds received from the sales and dispositions of other business lines.  Total capital expenditures were $107.7 million for the first nine months of 2017.  The Company expects full year 2017 capital expenditures for its domestic and international telecom businesses to be between the $95.0 million to $110.0 million range estimated at the beginning of the year.  Expenditures include planned major network expansions and upgrades in multiple markets, including the recently acquired Bermuda and U.S. Virgin Islands businesses, and therefore are higher than what we would consider to be ordinary course capital expenditures.  These projects include extensive fiber builds and upgrades as well as market-wide mobile data network upgrades but exclude the restoration work being undertaken in the U.S. Virgin Islands post hurricanes Irma and Maria.  In addition, capital expenditures for our renewable energy business are expected to be in the range of $30.0 million to $40.0 million for the full year 2017, primarily related to ongoing construction of solar projects in India.

Through September 30, the Company has repurchased 201,932 shares of common stock totaling $10.6 million and paid $16.5 million in dividends in 2017.   

Conference Call Information

ATN will host a conference call on Tuesday, October 31, 2017 at 9:30 a.m. Eastern Time (ET) to discuss its third quarter 2017 results. The call will be hosted by Michael Prior, President 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 1105620. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on October 31, 2017.

About ATN

ATN International, Inc. (NASDAQ:ATNI), headquartered in Beverly, Massachusetts, provides telecommunications services to rural, niche and other under-served markets and geographies in the United States, Bermuda and the Caribbean and owns and operates solar power systems in various locations in the United States and India. Through our operating subsidiaries, we (i) provide both 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) provide distributed solar electric power to corporate and municipal customers and (iii) are the owner and operator of terrestrial and submarine fiber optic transport systems. For more information, please visit www.atni.com.

Cautionary Language Concerning Forward Looking Statements

This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations; the estimated timeline for restoration of our U.S. Virgin Islands operations; our estimates of total losses due to Hurricanes Irma and Maria; the competitive environment in our key markets, demand for our services and industry trends; the pace of expansion and improvement of our telecommunications network and renewable energy operations including our level of estimated future capital expenditures and our realization of the benefits of these investments; the anticipated timing of our build schedule and the commencement of energy production of our India renewable energy projects; and management's plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results.  Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1)  our ability to conduct and complete a full assessment of damage in the U.S. Virgin Islands; (2) our ability to restore our networks and services to our customers in the U.S. Virgin Islands in an efficient and timely manner; (3) our ability to operate our newly acquired businesses in Bermuda and the U.S. Virgin Islands and both integrate these operations into our existing operations and execute planned network expansions and upgrades; (4) 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; (5) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables business; (6) economic, political and other risks facing our operations; (7) our ability to maintain favorable roaming arrangements; (8) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (9) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (10) our ability to find investment or acquisition or disposition opportunities that fit our strategic goals for the Company; (11) increased competition; (12) our ability to expand our renewable energy business; (13) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (14) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (15) the occurrence of weather events and natural catastrophes; (16) our continued access to capital and credit markets; (17) the risk of currency fluctuation for those markets in which we operate and (18) our ability to realize the value that we believe exists in our businesses.  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, 2016, filed with the SEC on March 1, 2017 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.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has presented the following measures:  Adjusted EBITDA; Operating Income excluding hurricane related charges; Net Income excluding hurricane related charges and; Diluted income per share excluding hurricane related charges.  Adjusted EBITDA is defined as net income attributable to ATN stockholders before bargain purchase gain, impairment of long-lived assets, restructuring charges, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, loss on damages of assets and other hurricane related charges and net income attributable to non-controlling interests.  Operating Income excluding hurricane related charges is defined as Operating Income (Loss) adjusted for the loss on damaged assets and other charges from hurricanes.  Net Income excluding hurricane related charges is defined as Net Income (Loss) adjusted for the loss on damaged assets and other hurricane related charges.  Diluted income per share excluding hurricane related charges is defined as net income (loss) per diluted share adjusted for the loss on damaged assets and other hurricane related charges.  The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company's core operating results and enhances 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.

1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA. 
2 See Table 6 for reconciliation of Operating Income (Loss), Net Income (Loss) and Net Income (Loss) per share to Operating Income excluding hurricane charges, Net Income excluding hurricane charges and Diluted income per share excluding hurricane charges, respectively.

   
  Table 1
  ATN International, Inc.
  Unaudited Condensed Consolidated Balance Sheets
  (in Thousands)
         
    September 30,   December 31,
    2017 2016
Assets:      
  Cash and cash equivalents $ 224,597   $ 269,721
  Restricted cash   833     524
  Short-term investments   7,857     9,237
  Other current assets   101,451     87,887
         
  Total current assets   334,738     367,369
         
  Long-term restricted cash   16,206     18,113
  Property, plant and equipment, net   624,595     647,712
  Goodwill and other intangible assets, net   172,231     126,193
  Other assets   36,248     38,831
         
Total assets $ 1,184,018   $ 1,198,218
         
Liabilities and Stockholders' Equity:      
  Current portion of long-term debt $ 13,944   $ 12,440
  Taxes payable   9,370     13,531
  Other current liabilities   150,363     124,134
         
  Total current liabilities   173,677     150,105
         
  Long-term debt, net of current portion $ 145,707   $ 144,383
  Deferred income taxes   45,655     46,622
  Other long-term liabilities   32,245     47,939
         
  Total long-term liabilities   223,607     238,944
         
Total liabilities   397,284     389,049
         
  Total ATN International, Inc.'s stockholders' equity   644,628     677,055
  Non-controlling interests   142,106     132,114
         
Total equity   786,734     809,169
         
  Total liabilities and stockholders' equity $ 1,184,018   $ 1,198,218
         


                      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,
          2017       2016         2017       2016  
  Revenues:                    
  Wireless   $ 57,254     $ 61,151       $ 167,945     $ 177,300  
  Wireline     56,309       66,129         181,568       122,190  
  Renewable energy       4,974       5,784         14,765       16,935  
  Equipment and other     3,595       5,731         9,214       12,046  
  Total revenue     122,132       138,795         373,492       328,471  
                     
  Operating expenses:                  
  Termination and access fees     27,387       34,359         85,758       77,872  
  Engineering and operations     18,852       19,372         57,881       40,621  
  Sales, marketing and customer service     8,440       8,377         26,176       21,814  
  Equipment expense     3,167       3,390         8,720       10,751  
  General and administrative     26,620       26,854         76,969       62,525  
  Transaction-related charges     61       2,091         887       16,156  
  Restructuring charges       -       -         -       1,785  
  Depreciation and amortization       21,157       21,866         65,904       52,913  
  Impairment of long-lived assets       -       349         -       11,425  
  Bargain purchase gain       -       -         -       (7,304 )
  (Gain) loss on sale of assets       (593 )     56         513       27  
  Loss on damaged assets and other hurricane related charges     36,566       -         36,566       -  
  Total operating expenses     141,657       116,714         359,374       288,585  
                     
  Operating income (loss)     (19,525 )     22,081         14,118       39,886  
                     
  Other income (expense):                  
  Interest expense, net     (1,645 )     (1,551 )       (5,480 )     (2,745 )
  Loss on deconsolidation of subsidiary     -       -         (529 )     -  
  Other expense     (690 )     766         (1,751 )     643  
  Other expense, net     (2,335 )     (785 )       (7,760 )     (2,102 )
                     
  Income (loss) before income taxes     (21,860 )     21,296         6,358       37,784  
  Income tax expense (benefit)     (884 )     9,602         4,839       17,178  
                     
  Net Income (Loss)     (20,976 )     11,694         1,519       20,606  
                       
  Net Income (Loss) attributable to non-controlling interests, net   (3,784 )     (4,523 )       (13,535 )     (10,400 )
                       
  Net Income (Loss) attributable to ATN International, Inc. stockholders   $ (24,760 )   $ 7,171       $ (12,016 )   $ 10,206  
                     
  Basic net income per weighted average share attributable to ATN International, Inc. stockholders:                    
                       
  Net Income (Loss)     $ (1.53 )   $ 0.44       $ (0.74 )   $ 0.63  
                     
  Diluted net income per weighted average share attributable to ATN International, Inc. stockholders:                    
                     
  Net Income (Loss)   $ (1.53 )   $ 0.44       $ (0.74 )   $ 0.63  
                     
  Weighted average common shares outstanding:                  
  Basic       16,178       16,148         16,177       16,128  
  Diluted       16,178       16,241         16,177       16,228  
                       


  Table 3
  ATN International, Inc.
  Unaudited Condensed Consolidated Cash Flow Statement
  (in Thousands)
     
    Nine Months Ended September 30,
      2017       2016  
         
  Net income $ 1,519     $ 20,606  
  Depreciation and amortization   65,904       52,913  
  Stock-based compensation   5,437       5,032  
  Loss on damaged assets and other hurricane related charges   35,213       -  
  Loss on deconsolidation of subsidiary   529       -  
  (Gain) Loss on sale of assets   (536 )     27  
  Equity in earnings   2,033       -  
  Bargain purchase gain   -       (7,304 )
  Impairment of long-lived assets   -       11,425  
  Deferred income taxes   1,456       (8,775 )
  Change in prepaid and accrued income taxes   (7,971 )     21,886  
  Change in other operating assets and liabilities   13,769       (5,135 )
  Other non-cash activity   4,011       1,430  
         
  Net cash provided by operating activities   121,364       92,105  
         
  Capital expenditures   (107,652 )     (78,455 )
  Acquisition of businesses, net of acquired cash of $0 and $8.3 million   (20,470 )     (152,499 )
  Sale of business, net of transferred cash of $2.1 million   22,381       -  
  Purchases of spectrum licenses and other intangible assets, including deposits   (36,832 )     (10,860 )
  Purchase of securities   -       (9,422 )
  Proceeds from sale of investments   2,761       1,424  
  Change in restricted cash   1,598       (28,287 )
         
         
  Net cash used in investing activities   (138,214 )     (278,099 )
         
  Dividends paid on common stock   (16,502 )     (15,468 )
  Distributions to non-controlling interests   (3,583 )     (7,667 )
  Principal repayments of term loan   (5,447 )     (7,982 )
  Proceeds from new borrowings   8,571       60,000  
  Purchases of common stock   (11,139 )     (3,997 )
  Investments made by minority shareholders in consolidated affiliates   122       22,409  
  Other   (496 )     (650 )
         
  Net cash provided by (used in) financing activities   (28,474 )     46,645  
         
  Effect of foreign currency exchange rates on cash and cash equivalents   200       (263 )
         
  Net change in cash and cash equivalents   (45,124 )     (139,612 )
         
  Cash and cash equivalents, beginning of period   269,721       392,045  
         
  Cash and cash equivalents, end of period $ 224,597     $ 252,433  
         


            Table 4
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the three months ended September 30, 2017 is as follows:
             
    U.S. 
Telecom
International
Telecom
Renewable
Energy
Corporate and
Other  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $ 36,830   $ 20,424   $ -   $ -   $ 57,254  
  Wireline   2,336     53,973     -     -     56,309  
  Renewable Energy   -     -     4,974     -     4,974  
  Equipment and Other   945     2,614     36     -     3,595  
  Total Revenue $ 40,111   $ 77,011   $ 5,010   $ -   $ 122,132  
             
  Operating Income (Loss) $ 15,987   $ (28,491 ) $ 976   $ (7,997 ) $ (19,525 )
             
  Non-controlling interest ( net income or (loss) ) $ (1,268 ) $ (2,243 ) $ (273 ) $ -   $ (3,784 )
             
  Non GAAP measure:          
  Adjusted EBITDA $ 21,695   $ 20,340   $ 2,632   $ (7,001 ) $ 37,666  
             
  Balance Sheet Data (at September 30, 2017):          
  Cash, cash equivalents and investments $ 31,328   $ 112,169   $ 19,147   $ 70,643   $ 233,287  
  Total current assets   61,473     163,235     25,301     84,729     334,738  
  Fixed assets, net   100,349     347,421     158,554     18,271     624,595  
  Total assets   221,528     586,747     201,024     174,719     1,184,018  
  Total current liabilities   53,065     86,359     18,561     15,692     173,677  
  Total debt   -     95,465     64,187     -     159,652  
             
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the three months ended September 30, 2016 is as follows:
             
    U.S. 
Telecom
International
Telecom
Renewable
Energy
Corporate and
Other  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $ 40,076   $ 21,075   $ -   $ -   $ 61,151  
  Wireline   6,936     59,193     -     -     66,129  
  Renewable Energy   -     -     5,784     -     5,784  
  Equipment and Other   548     5,045     138     -     5,731  
  Total Revenue $ 47,560   $ 85,313   $ 5,922   $ -   $ 138,795  
             
  Operating Income (Loss) $ 18,120   $ 11,358   $ 2,822   $ (10,219 ) $ 22,081  
             
  Non-controlling interest ( net income or (loss) ) $ (2,034 ) $ (2,036 ) $ (453 ) $ -   $ (4,523 )
             
  Non GAAP measure:          
  Adjusted EBITDA $ 24,296   $ 24,732   $ 4,073   $ (6,658 ) $ 46,443  
             
             
  *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
             
             
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the nine months ended September 30, 2017 is as follows:
             
    U.S. 
Telecom
International
Telecom
Renewable
Energy
Corporate and
Other  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $ 108,499   $ 59,446   $ -   $ -   $ 167,945  
  Wireline   10,443     171,125     -     -     181,568  
  Renewable Energy   -     -     14,765     -     14,765  
  Equipment and Other   1,939     7,101     174     -     9,214  
  Total Revenue $ 120,881   $ 237,672   $ 14,939   $ -   $ 373,492  
             
  Operating Income (Loss) $ 44,520   $ (7,713 ) $ 3,263   $ (25,952 ) $ 14,118  
             
  Non-controlling interest ( net income or (loss) ) $ (5,441 ) $ (7,256 ) $ (838 ) $ -   $ (13,535 )
             
  Non GAAP measure:          
  Adjusted EBITDA $ 64,131   $ 67,367   $ 8,204   $ (21,714 ) $ 117,988  
             
  Statement of Cash Flow Data:          
  Capital expenditures $ 16,773   $ 54,775   $ 31,327   $ 4,779   $ 107,654  
             
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
             
  For the nine months ended September 30, 2016 is as follows:
             
    U.S. 
Telecom
International
Telecom
Renewable
Energy
Corporate and
Other  *
Total
             
  Statement of Operations Data:          
  Revenue          
  Wireless $ 117,194   $ 60,106   $ -   $ -   $ 177,300  
  Wireline   18,793     103,397     -     -     122,190  
  Renewable Energy   -     -     16,935     -     16,935  
  Equipment and Other   1,716     10,071     259     -     12,046  
  Total Revenue $ 137,703   $ 173,574   $ 17,194   $ -   $ 328,471  
             
  Operating Income (Loss) $ 39,698   $ 28,320   $ (734 ) $ (27,398 ) $ 39,886  
             
  Non-controlling interest ( net income or (loss) ) $ (4,888 ) $ (3,911 ) $ (1,601 ) $ -   $ (10,400 )
             
  Non GAAP measure:          
  Adjusted EBITDA $ 68,179   $ 54,232   $ 12,123   $ (19,646 ) $ 114,888  
             
  Statement of Cash Flow Data:          
  Capital expenditures $ 26,709   $ 36,543   $ 10,326   $ 4,877   $ 78,455  
             
             
  *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
             
             
             
  ATN International, Inc.
  Selected Segment Financial Information
  (In Thousands)
  At December 31, 2016 is as follows:
             
    U.S. 
Telecom
International
Telecom
Renewable
Energy
Corporate and
Other  *
Total
             
  Balance Sheet Data:          
  Cash, cash equivalents and investments $ 22,235   $ 97,681   $ 27,378   $ 131,664   $ 278,958  
  Total current assets   50,983     143,201     37,440     135,745     367,369  
  Fixed assets, net   129,274     372,741     130,268     15,429     647,712  
  Total assets   240,006     597,454     190,253     170,505     1,198,218  
  Total current liabilities   23,162     95,502     12,603     18,838     150,105  
  Total debt   -     91,316     65,507     -     156,823  
             
  *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
             
             
  ATN International, Inc.
  Selected Segment Operational Data
             
    Quarter ended  
    December 31, March 31, June 30, September 30,  
    2016 * 2017 * 2017 * 2017 *, **  
             
  U.S. Telecom Operational Data:          
  Wireless - Total Domestic Base Stations   1,006     1,019     1,041     1,061    
             
             
  International Telecom Operational Data:          
  Wireline - Voice / Access lines   179,700     176,900     174,600     172,300    
  Wireline - Data Subscribers   97,400     99,900     101,700     102,400    
  Wireline - Video Subscribers   48,600     47,900     47,200     46,700    
  Wireless - Subscribers   304,700     302,900     302,900     302,000    
             
             
  * Adjusted subscriber counts for the sales of St Maarten and British Virgin Islands, and the transfer of ownership of Aruba business
             
  **  The subscriber counts for the U.S. Virgin Islands were as of August 31, 2017 and before the impact of Hurricane Irma and Maria.
             


            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, 2017 and 2016
             
  Three Months Ended September 30, 2017
    U.S.
Telecom

International
Telecom 
Renewable
Energy

Corporate
and Other *

Total
             
  Net Income attributable to ATN International, Inc. stockholders         $   (24,760 )
  Net Income (Loss) attributable to non-controlling interests, net of tax             3,784  
  Income tax benefit             (884 )
  Other expense, net             690  
  Interest expense, net             1,645  
  Operating income $   15,987   $   (28,491 ) $   976   $   (7,997 ) $   (19,525 )
  Depreciation and amortization     6,301       12,088       1,656       1,112       21,157  
  (Gain) loss on sale of assets     (593 )     -        -        -        (593 )
  Loss on damaged assets and other hurricane related charges     -        36,566       -        -        36,566  
  Transaction-related charges     -        177       -        (116 )     61  
  Adjusted EBITDA $   21,695   $   20,340   $   2,632   $   (7,001 ) $   37,666  
             
             
             
             
  Three Months Ended September 30, 2016
    U.S.
Telecom

International
Telecom 
Renewable
Energy

Corporate
and Other *

Total
             
  Net Income (Loss) attributable to ATN International, Inc. stockholders         $   7,171  
  Net Income (Loss) attributable to non-controlling interests, net of tax             4,523  
  Income tax expense             9,602  
  Other income, net             (766 )
  Interest expense, net             1,551  
  Operating income $   18,120   $   11,358   $   2,822   $   (10,219 ) $   22,081  
  Depreciation and amortization     6,176       12,896       1,227       1,567       21,866  
  Impairment of long-lived asset     -        349       -        -        349  
  (Gain) loss on sale of assets     -        56       -        -        56  
  Transaction-related charges     -        73       24       1,994       2,091  
  Adjusted EBITDA $   24,296   $   24,732   $   4,073   $   (6,658 ) $   46,443  
             
             
             
             
  *  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, 2017 and 2016
             
  Nine Months Ended September 30, 2017
    U.S. 
Telecom

International
Telecom 
Renewable
Energy

Corporate
and Other *

Total
             
  Net Income attributable to ATN International, Inc. stockholders         $   (12,016 )
  Net Income (Loss) attributable to non-controlling interests, net of tax             13,535  
  Income tax expense             4,839  
  Loss on deconsolidation of subsidiary             529  
  Other expense, net             1,751  
  Interest expense, net             5,480  
  Operating income $   44,520   $   (7,713 ) $   3,263   $   (25,952 ) $   14,118  
  Depreciation and amortization     19,098       38,337       4,941       3,528       65,904  
  (Gain) loss on sale of assets     513       -        -        -        513  
  Loss on damaged assets and other hurricane related charges     -        36,566       -        -        36,566  
  Transaction-related charges     -        177       -        710       887  
  Adjusted EBITDA $   64,131   $   67,367   $   8,204   $   (21,714 ) $   117,988  
             
             
             
             
  Nine Months Ended September 30, 2016
    U.S. 
Telecom

International
Telecom 
Renewable
Energy

Corporate
and Other *

Total
             
  Net Income (Loss) attributable to ATN International, Inc. stockholders         $   10,206  
  Net Income (Loss) attributable to non-controlling interests, net of tax             10,400  
  Income tax expense             17,178  
  Other income, net             (643 )
  Interest expense, net             2,745  
  Operating income $   39,698   $   28,320   $   (734 ) $   (27,398 ) $   39,886  
  Depreciation and amortization     17,405       27,482       3,642       4,384       52,913  
  Impairment of long-lived asset     11,076       349       -        -        11,425  
  Bargain purchase gain     -        (7,304 )     -        -        (7,304 )
  (Gain) loss on sale of assets     -        27       -        -        27  
  Restructuring charges     -        1,785       -        -        1,785  
  Transaction-related charges     -        3,573       9,215       3,368       16,156  
  Adjusted EBITDA $   68,179   $   54,232   $   12,123   $   (19,646 ) $   114,888  
             
             
             
  *  Corporate and Other refer to corporate overhead expenses and consolidating adjustments 
             


        Table 6
         
  ATN International, Inc.
  (In Thousands)
  Reconciliation of GAAP measures to Non-GAAP measures
         
  Reconciliation of Operating Income (Loss) to Operating Income excluding hurricane charges, Net Income (Loss) to Net Income (Loss) excluding hurricane charges and Net Income (Loss) per share to Net Income per share excluding hurricane charges
         
  For the three months ended September 30, 2017 is as follows:
         
    Operating Income (Loss) Net Income (Loss) Net Income (Loss) per
share
         
  GAAP - As reported $ (19,525 ) $ (24,760 ) $ (1.53 )
  Add back:  Loss on damaged assets and other charges from hurricanes   36,566     36,566     2.26  
  Tax effect   -     69     0.00  
         
  Non-GAAP $ 17,041   $ 11,875   $ 0.73  
         
         
         
         
         
  For the nine months ended September 30, 2017 is as follows:
         
    Operating Income (Loss) Net Income (Loss) Net Income (Loss) per
share
         
  GAAP - As reported $ 14,118   $ (12,016 ) $ (0.74 )
  Add back:  Loss on damaged assets and other charges from hurricanes   36,566     36,566     2.26  
  Tax effect   -     69     0.00  
         
  Non-GAAP $ 50,684   $ 24,619   $ 1.52  
         


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

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