Market Overview

ATN Reports Fourth Quarter and Full Year 2019 Results

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  • Continued growth in domestic and international telecom drives improved underlying operating results
  • Telecom businesses well positioned to continue to deliver strong financial performance in 2020      

BEVERLY, Mass., Feb. 19, 2020 (GLOBE NEWSWIRE) -- ATN International, Inc. (NASDAQ:ATNI) today reported results for the fourth quarter and full year ended December 31, 2019.

Business Review and Outlook

"Fourth quarter operating results in our telecom segments improved considerably in most respects from last year's levels," said Michael Prior, ATN's Chief Executive Officer. "Consolidated telecom revenues in the fourth quarter increased at a high single-digit rate, driving higher growth in Adjusted EBITDA1.

"Positive fourth quarter comparisons in our International Telecom segment were broad-based, reflective of growth in our broadband services across our markets and the continued recovery of our US Virgin Islands operations, following the 2017 hurricanes. Our scale and investments in expanded fiber coverage and capacity, combined with the improved economic conditions in several of our markets, have put us in a strong position to deliver the data services that are in high demand.

"US Telecom operations generated double-digit revenue growth for the quarter due to increased wholesale wireless revenue as part of the FirstNet transaction and our work on the Connect America Fund Phase II (CAF II). This revenue boost and related operating income expansion more than offset additional costs related to our early-stage domestic telecom ventures.

"Fourth quarter net income included $5.8 million of charges tied to a revision to the carrying value of our solar operations in India given changing market conditions and delays in execution on certain pipeline assets.  We are pleased with recent customer acquisition activities in this market and continue to evaluate potential partnering alternatives to execute on the solar energy platform that we have built in India.

"Looking ahead, we believe we have entered 2020 with our core telecom businesses well positioned, and we expect them to continue to increase segment revenue and Adjusted EBITDA1 for the year. Our International Telecom segment has a broadening revenue base, with the potential to participate in macro-economic growth in multiple markets while at the same time increasing share and driving operating efficiencies.  Our US Telecom segment has made great strides towards strengthening its wholesale revenue pipeline, with potential upside coming from our ability to expand our enterprise and retail offerings. Also, while still early in the development phase, we believe our Geoverse subsidiary is well positioned to play a major role in the promising "private LTE" market. Geoverse has developed a strong platform and technical solution and is pursuing growth both through turnkey in-building deployments and working with strategic partners who are interested in utilizing Geoverse's network solution."

Fourth Quarter and Full Year 2019 Financial Results

Fourth quarter 2019 consolidated revenues of $112.1 million were up 4% compared to last year's reported revenues of $107.8 million.  An operating loss for the fourth quarter of 2019 of $1.7 million included $5.8 million of goodwill impairment charges and losses on disposed assets.  This compares with the prior year operating income of $10.3 million, which included the $10.9 million gain mostly from the sale of the Company's U.S. solar portfolio.  Adjusted EBITDA1 was $28.5 million, an increase of 22% compared to $23.4 million in the prior year period and up 39% adjusting for the sale of U.S. solar assets included in Q4 2018.  Net loss attributable to ATN's stockholders for the fourth quarter was $9.8 million, or $0.61 per share, and included approximately $3.0 million of foreign currency losses from several of our markets.  The prior year period's net income was $1.1 million, or $0.07 per diluted share.

Revenues for the full year 2019 were $438.7 million, 3% below the $451.2 million reported for the full year 2018.  Operating income for the full year 2019 was $13.4 million including $6.1 million of goodwill impairment charges and losses on disposed assets.  In 2018, operating income was $61.0 million, which included $26.4 million in net gains on the sales of certain wholesale wireless assets in the U.S. and the Company's U.S. solar portfolio.  Adjusted EBITDA1 for the full year 2019 was $108.9 million, a decrease of 12% from the prior year.  Net loss attributable to ATN stockholders for the full year 2019 was $10.8 million, or $0.68 per share, compared with the prior year's net income of $19.8 million or $1.24 per diluted share.
______________________________________________________________________
1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.

Fourth Quarter 2019 Operating Highlights

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

Segment Results (in Thousands)
  Three Months Ended December 31, 2019
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 27,849 $ 83,079 $ 1,158   $ -   $ 112,086  
Operating Income (Loss) $ 2,137 $ 11,119 $ (6,492 ) $ (8,503 ) $ (1,739 )
Adjusted EBITDA1 $ 8,349 $ 26,598 $ 146   $ (6,625 ) $ 28,468  
  Year Ended December 31, 2019  
Capital Expenditures $ 17,490 $ 42,029 $ 6,448   $ 6,758   $ 72,725  
  Three Months Ended December 31, 2018  
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue $ 24,888 $ 78,033 $ 4,885   $ -   $ 107,806  
Operating Income (Loss) $ 973 $ 7,572 $ 9,753   $ (7,980 ) $ 10,318  
Adjusted EBITDA1 $ 6,467 $ 20,645 $ 2,948   $ (6,704 ) $ 23,356  
  Year Ended December 31, 2018  
Capital Expenditures $ 13,389 $ 160,013 $ 4,515   $ 8,004   $ 185,921  
                           

International Telecom

International Telecom consists of a broad range of information and communications services including wireline and wireless data, internet, voice and video service revenues from our operations in Bermuda and the Caribbean.  International Telecom revenues increased 6% year-on-year mainly due to a strong increase in broadband revenues in most of our markets, including the U.S. Virgin Islands, where the market and our operations continue to recover and grow following the 2017 hurricanes.  International Telecom operating income increased 47% to $11.1 million from the prior year's quarter and Adjusted EBITDA1 increased 29% to $26.6 million from the prior year's quarter as a result of the higher broadband revenues in multiple markets, the post-storm recovery in the U.S. Virgin Islands and improved operating margins in multiple markets.

US Telecom

US Telecom revenues consist mainly of wireless revenues from our voice and data wholesale wireless operations and our smaller retail operations in the Southwestern United States, as well as enterprise and wholesale wireline revenues.  US Telecom segment revenues increased by 12% primarily due to the CAF II federal support revenues, which began earlier in 2019 and increased wholesale revenues as part of the FirstNet transaction.  Work has commenced and we expect construction revenues under the network build portion of the FirstNet agreement to begin in mid-2020 and continue through mid-2021.  As revenues from the build will be largely offset by construction costs, we do not expect a material impact on operating income or Adjusted EBITDA1.   Operating income increased to $2.1 million from the prior year's quarter and Adjusted EBITDA1  for this segment increased by 29% to $8.3 million. This was due to the impact of the CAF II and FirstNet revenues and was offset partially by additional operating costs related to our early stage business investments.   

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, fourth quarter 2019 revenues were $1.2 million, compared to $4.9 million in the prior year quarter and Adjusted EBITDA1 amounted to $0.1 million, compared to $2.9 million in the fourth quarter of 2018.  We finished 2019 with 52 MWs of revenue generating solar facilities compared to 49 MWs at the end of 2018 and have several activities underway to continue expanding that in 2020.  The current year's operating loss was $6.4 million and includes the impact of $5.8 million of impaired goodwill and asset dispositions.  This compares to the prior year's operating income of $9.8 million which included the $12.4 million gain on the sale of the U.S. solar portfolio. 

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at December 31, 2019 was $162.4 million.  Additionally, the Company ended the fourth quarter with $0.4 million in short-term investments.  Net cash provided by operating activities was $87.9 million for the year ended 2019, compared with $115.9 million for the prior year.  The decrease in operating cash flow compared with the prior year is mostly the result of changes in net working capital activity, primarily income tax payments of $26.9 million made in 2019 and the related decrease in accrued taxes as a result of the 2018 gain on the sale of the U.S. solar portfolio.  For the year ended 2019, the Company used net cash of $118.2 million for investing and financing activities compared to $142.5 million for 2018.  In 2019, this included $72.7 million in capital expenditures, $10.9 million of dividends on common stock and $25.4 million for minority investments.  Over the past three years the company has made minority investments totaling approximately $32.3 million in four companies, in addition to serving as the primary funding partner in three early stage controlled subsidiaries.  Management expects full year 2020 capital expenditures in International Telecom to be approximately $45.0 - $50.0 million.  In the US Telecom segment, we expect capital expenditures to be approximately $35.0 - $40.0 million, including $20.0 million on towers and backhaul to support the FirstNet contract.  In the Renewable Energy segment, we expect $2.0 - $4.0 million of project costs in 2020 related to building additional capacity.

Conference Call Information

ATN will host a conference call on Thursday, February 20, 2020 at 9:30 a.m. Eastern Time (ET) to discuss its fourth quarter and year end 2019 results and business outlook. The call will be hosted by Michael Prior, Chairman and Chief Executive Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are US/Canada: (877) 734-4582 and International: (678) 905-9376, conference ID 4758768. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on February 20, 2020.

About ATN

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

Cautionary Language Concerning Forward Looking Statements

This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations including revenue and Adjusted EBITDA expectations and capital expenditures for 2020; the competitive environment in our key markets, demand for our services and industry trends; the impact of the CAF II federal support revenues and the FirstNet transaction; our growth opportunities; our expectations for macro-economic growth in certain of our markets; 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 and opportunities facing our operations; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to expand and obtain funding for our renewable energy business; (9) our ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (10) the occurrence of weather events and natural catastrophes; (11) increased competition;  (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) our continued access to capital and credit markets; and (14) the risk of currency fluctuation for those markets in which we operate.  These and other additional factors that may cause actual future events and results to differ materially from the events and results indicated in the forward-looking statements above are set forth more fully under Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019 and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, filed with the SEC on November 8, 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 Adjusted EBITDA in this release and in the tables included herein. 

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 this non-GAAP financial measure 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 this non-GAAP measure, 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 measure included in this press release is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of this non-GAAP financial measure used in this press release to the most directly comparable GAAP financial measure are set forth in the text of, and the accompanying tables to, this press release.  While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.

 
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
       
  December 31,   December 31,
2019 2018
Assets:      
Cash and cash equivalents $ 161,287   $ 191,836
Restricted cash   1,071     1,071
Short-term investments   416     393
Other current assets   65,949     82,465
       
Total current assets   228,723     275,765
       
Property, plant and equipment, net   605,581     626,852
Operating lease right-of-use assets   68,763     -
Goodwill and other intangible assets, net   161,818     166,979
Other assets   65,110     37,708
       
Total assets $ 1,129,995   $ 1,107,304
       
Liabilities and Stockholders' Equity:      
Current portion of long-term debt $ 3,750   $ 4,688
Taxes payable   8,517     31,795
Current portion of operating lease liabilities   11,406     -
Other current liabilities   95,996     104,167
       
Total current liabilities   119,669     140,650
       
Long-term debt, net of current portion $ 82,676   $ 86,294
Deferred income taxes   7,949     10,276
Operating lease liabilities   56,164     -
Other long-term liabilities   57,454     46,760
       
Total liabilities   323,912     283,980
       
Total ATN International, Inc.'s stockholders' equity   676,122     695,387
Non-controlling interests   129,961     127,937
       
Total equity   806,083     823,324
       
Total liabilities and stockholders' equity $ 1,129,995   $ 1,107,304
       



              Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
               
  Three Months Ended   Year Ended
December 31,   December 31,
  2019     2018     2019     2018  
Revenues:              
Wireless $ 49,782     $ 45,778     $ 193,488     $ 198,824  
Wireline   61,146       57,143       239,700       230,225  
Renewable energy   1,158       4,885       5,534       22,158  
Total revenue   112,086       107,806       438,722       451,207  
               
Operating expenses:              
Termination and access fees   29,503       30,441       112,943       114,478  
Engineering and operations   19,415       18,292       77,649       73,031  
Sales, marketing and customer service   9,682       9,238       38,730       35,207  
General and administrative   25,018       26,479       100,534       104,267  
Transaction-related charges   155       2,000       244       2,642  
Restructuring charges   -       752       -       515  
Depreciation and amortization   24,255       21,117       89,125       85,719  
(Gain) loss on disposition of assets   2,518       (10,916 )     2,841       (26,425 )
Impairment of goodwill   3,279       -       3,279       -  
Loss on damaged assets and other hurricane related charges   -       85       -       750  
Total operating expenses   113,825       97,488       425,345       390,184  
               
Operating income (loss)   (1,739 )     10,318       13,377       61,023  
               
Other income (expense):              
Interest expense, net   (764 )     (823 )     (2,747 )     (6,162 )
Other income (expense)   (1,803 )     1,841       (4,558 )     (1,119 )
Other income (expense), net   (2,567 )     1,018       (7,305 )     (7,281 )
               
Income before income taxes   (4,306 )     11,336       6,072       53,742  
Income tax expense   1,331       5,851       4,105       18,870  
               
Net Income (Loss)   (5,637 )     5,485       1,967       34,872  
               
Net income attributable to non-controlling interests, net   (4,116 )     (4,352 )     (12,773 )     (15,057 )
               
Net income (loss) attributable to ATN International, Inc. stockholders $ (9,753 )   $ 1,133     $ (10,806 )   $ 19,815  
               
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:              
               
Basic Net Income (Loss) $ (0.61 )   $ 0.07     $ (0.68 )   $ 1.24  
               
               
Diluted Net Income (Loss) $ (0.61 )   $ 0.07     $ (0.68 )   $ 1.24  
               
Weighted average common shares outstanding:              
Basic   16,000       15,981       15,983       15,988  
Diluted   16,000       16,025       15,983       16,042  
               



 
Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
   
  Year Ended December 31,
    2019       2018  
       
Net income $ 1,967     $ 34,872  
Depreciation and amortization   89,125       85,719  
Provision for doubtful accounts   5,816       5,134  
(Gain) Loss on disposition of assets   2,841       (26,425 )
Stock-based compensation   6,384       6,420  
Deferred income taxes   (2,192 )     (23,242 )
Loss on equity investments   4,724       -  
Impairment of goodwill   3,279       -  
Unrealized loss on foreign currency   362       1,342  
Change in prepaid and accrued income taxes   (14,472 )     32,236  
Change in other operating assets and liabilities   (10,431 )     (1,262 )
Other non-cash activity   500       1,071  
       
Net cash provided by operating activities   87,903       115,865  
       
Capital expenditures   (72,602 )     (105,769 )
Hurricane rebuild capital expenditures   (123 )     (80,152 )
Hurricane insurance proceeds   -       34,606  
Purchases of strategic investments   (25,362 )     (3,000 )
Proceeds from sale of short-term investments   8,141       6,564  
Purchase of short-term investments   (8,028 )     (138 )
Proceeds from sale of assets   -       6,900  
Sale of business, net of transferred cash of $0 and $11.5 million, respectively   6,572       48,270  
Government grants   3,140       5,400  
       
       
Net cash used in investing activities   (88,262 )     (87,319 )
       
Dividends paid on common stock   (10,880 )     (10,866 )
Distributions to non-controlling interests   (7,161 )     (18,780 )
Principal repayments of term loan   (4,700 )     (9,795 )
Payment of debt issuance costs   (1,340 )     -  
Stock-based compensation share repurchases   (1,649 )     (4,622 )
Purchases of common stock - share buyback   (162 )     (1,576 )
Repurchases of non-controlling interests   (4,504 )     (9,663 )
Investments made by minority shareholders   488       -  
Other   -       72  
       
Net cash used in financing activities   (29,908 )     (55,230 )
       
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash   (282 )     (299 )
       
Net change in total cash, cash equivalents and restricted cash   (30,549 )     (26,983 )
       
Total cash, cash equivalents and restricted cash, beginning of period   192,907       219,890  
       
Total cash, cash equivalents and restricted cash, end of period $ 162,358     $ 192,907  
       



 
          Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
           
For the three months ended December 31, 2019 is as follows:
           
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 27,172   $ 22,610   $ -   $ -   $ 49,782  
Wireline   677     60,469     -     -     61,146  
Renewable Energy   -     -     1,158     -     1,158  
Total Revenue $ 27,849   $ 83,079   $ 1,158   $ -   $ 112,086  
           
Operating Income (Loss) $ 2,137   $ 11,119   $ (6,492 ) $ (8,503 ) $ (1,739 )
Stock-based compensation $ -   $ 100   $ 87   $ 1,316   $ 1,503  
Non-controlling interest ( net income or (loss) ) $ (1,186 ) $ (2,924 ) $ (6 ) $ -   $ (4,116 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 8,349   $ 26,598   $ 146   $ (6,625 ) $ 28,468  
           
Balance Sheet Data (at December 31, 2019):          
Cash, cash equivalents and investments $ 38,240   $ 43,125   $ 25,054   $ 55,284     161,703  
Total current assets   54,207     91,497     27,534     55,485     228,723  
Fixed assets, net   69,184     466,523     48,421     21,453     605,581  
Total assets   222,356     647,228     76,723     183,688     1,129,995  
Total current liabilities   24,905     77,644     2,745     14,375     119,669  
Total debt   -     86,426     -     -     86,426  
           
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
           
For the three months ended December 31, 2018 is as follows:
           
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 23,110   $ 22,668   $ -   $ -   $ 45,778  
Wireline   1,778     55,365     -     -     57,143  
Renewable Energy   -     -     4,885     -     4,885  
Total Revenue $ 24,888   $ 78,033   $ 4,885   $ -   $ 107,806  
           
Operating Income (Loss) $ 973   $ 7,572   $ 9,753   $ (7,980 ) $ 10,318  
Stock-based compensation   -     19     19     1,310     1,348  
Non-controlling interest ( net income or (loss) ) $ (414 ) $ (2,544 ) $ (1,394 ) $ -   $ (4,352 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 6,467   $ 20,645   $ 2,948   $ (6,704 ) $ 23,356  
           
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the year ended December 31, 2019 is as follows:
           
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 105,434   $ 88,054   $ -   $ -   $ 193,488  
Wireline   3,214     236,486     -     -     239,700  
Renewable Energy   -     -     5,534     -     5,534  
Total Revenue $ 108,648   $ 324,540   $ 5,534   $ -   $ 438,722  
           
Operating Income (Loss) $ 8,064   $ 46,921   $ (7,243 ) $ (34,365 ) $ 13,377  
Stock-based compensation $ -     405     87     5,892   $ 6,384  
Non-controlling interest ( net income or (loss) ) $ (3,050 ) $ (9,734 ) $ 11   $ -   $ (12,773 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 31,359   $ 103,095   $ 1,838   $ (27,426 ) $ 108,866  
           
Statement of Cash Flows Data:          
Capital expenditures $ 17,490   $ 42,029   $ 6,448   $ 6,758   $ 72,725  
           
           
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the year ended December 31, 2018 is as follows:
           
  US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
           
Statement of Operations Data:          
Revenue          
Wireless $ 108,878   $ 89,946   $ -   $ -   $ 198,824  
Wireline   6,602     223,623     -     -     230,225  
Renewable Energy   -     -     22,158     -     22,158  
Total Revenue $ 115,480   $ 313,569   $ 22,158   $ -   $ 451,207  
           
Operating Income (Loss) $ 36,813   $ 45,022   $ 13,440   $ (34,252 ) $ 61,023  
Stock-based compensation   -     88     105     6,227     6,420  
Non-controlling interest ( net income or (loss) ) $ (3,183 ) $ (9,753 ) $ (2,121 ) $ -   $ (15,057 )
           
Non GAAP measure:          
Adjusted EBITDA (1) $ 44,676   $ 94,463   $ 13,638   $ (28,554 ) $ 124,223  
           
Statement of Cash Flows Data:          
Capital expenditures $ 13,389   $ 160,013   $ 4,515   $ 8,004   $ 185,921  
           
           
           
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
  December 31, March 31, June 30, September 30, December 31,
  2018** 2019 2019 2019 2019
           
US Telecom Operational Data:          
Total Domestic Base Stations   1,045     1,046     1,048     1,048     1,043  
           
           
International Telecom Operational Data:          
Voice / Access lines*   171,100     171,200     171,200     170,200     167,300  
High Speed Data Subscribers*   120,100     123,600     124,700     127,200     129,900  
Video Subscribers   41,700     41,000     39,700     38,600     38,200  
Wireless *   300,400     293,500     290,400     284,800     283,700  
           
* Counts were adjusted for all periods presented based upon a change in methodology and process
           
** For 2018 quarter, subscribers for 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 December 31, 2019 and 2018
 
Three Months Ended December 31, 2019
  US
Telecom 
  International
Telecom
  Renewable
Energy
  Corporate and
Other *
  Total  
                     
Net income (loss)attributable to ATN International, Inc. stockholders                 $   (9,753 )
Net income attributable to non-controlling interests, net of tax                   4,116  
Income tax expense                   1,331  
Other (income) expense, net                   1,803  
Interest expense, net                   764  
Operating income $   2,137   $   11,119   $   (6,492 ) $   (8,503 ) $   (1,739 )
Depreciation and amortization   6,199     15,284     1,036     1,736     24,255  
(Gain) Loss on disposition of assets   13     195     2,310     -      2,518  
 Impairment of intangible assets   -      -      3,279     -      3,279  
Transaction-related charges   -      -      13     142     155  
Adjusted EBITDA  $   8,349   $   26,598   $   146   $   (6,625 ) $   28,468  
                     
                     
                     
  Three Months Ended December 31, 2018
  US
Telecom 
  International
Telecom 
  Renewable
Energy
  Corporate and
Other *
  Total  
                       
Net Income (loss) attributable to ATN International, Inc. stockholders                 $   1,133  
Net income attributable to non-controlling interests, net of tax                   4,352  
Income tax expense                   5,851  
Other expense, net                   (1,841 )
Interest expense, net                   823  
Operating income $   973   $   7,572   $   9,753   $   (7,980 ) $   10,318  
Depreciation and amortization   5,602     12,983     1,097     1,435     21,117  
Restructuring charges   -      -      752     -      752  
(Gain) loss on disposition of assets   (134 )   5     (10,787 )   -      (10,916 )
Loss on damaged assets and other hurricane related charges, net of insurance recovery   -      85     -      -      85  
Transaction-related charges   26     -      2,133     (159 )   2,000  
Adjusted EBITDA  $   6,467   $   20,645   $   2,948   $   (6,704 ) $   23,356  
                     
                     
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
                     
 Reconciliation of Net Income to Adjusted EBITDA for the Year Ended December 31, 2019 and 2018
 Year Ended December 31, 2019
  US
Telecom 
  International
Telecom 
  Renewable
Energy
  Corporate and
Other *
  Total  
                       
Net income (loss) attributable to ATN International, Inc. stockholders                 $   (10,806 )
Net income attributable to non-controlling interests, net of tax                   12,773  
Income tax expense                   4,105  
Other (income) expense, net                   4,558  
Interest expense, net                   2,747  
Operating income $   8,064   $   46,921   $   (7,243 ) $   (34,365 ) $   13,377  
Depreciation and amortization   23,119     55,993     3,305     6,708     89,125  
(Gain) Loss on disposition of long-lived assets   176     181     2,484     -      2,841  
 Impairment of intangible assets   -      -      3,279     -      3,279  
Transaction-related charges   -      -      13     231     244  
Adjusted EBITDA  $   31,359   $   103,095   $   1,838   $   (27,426 ) $   108,866  
                     
                     
                     
  Year Ended December 31, 2018
  US
Telecom 
  International
Telecom 
  Renewable
Energy
  Corporate and
Other *
  Total  
                       
Net Income attributable to ATN International, Inc. stockholders                 $   19,815  
Net income attributable to non-controlling interests, net of tax                   15,057  
Income tax expense                   18,870  
Other (income) expense, net                   1,119  
Interest expense, net                   6,162  
Operating income $   36,813   $   45,022   $   13,440   $   (34,252 ) $   61,023  
Depreciation and amortization   24,615     48,889     6,589     5,625     85,718  
Restructuring charges   -      (236 )   751     -      515  
(Gain) Loss on disposition of long-lived assets   (17,188 )   38     (9,275 )   -      (26,425 )
Loss on damaged assets and other hurricane related charges, net of insurance recovery   -      750     -      -      750  
Transaction-related charges   436     -      2,133     73     2,642  
Adjusted EBITDA  $   44,676   $   94,463   $   13,638   $   (28,554 ) $   124,223  
                     
                     
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments 
                     


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

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