EX-99.1 2 tm2131222d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

News Release

 

 

 

For Immediate Release Contact: 978-619-1300
Wednesday October 27, 2021   Michael T. Prior
    Chairman and
    Chief Executive Officer
     
    Justin D. Benincasa
    Chief Financial Officer

 

ATN Reports Third Quarter 2021 Results

 

Alaska Communications Acquisition Drives 49% Year-on-Year Consolidated Revenue Growth

 

·International Telecom Continues to Generate Subscriber and Revenue Growth

 

Alaska Communications Performed in Line with Expectations

 

Expanding Domestic Network Reach to Grow High Speed Data Revenue and Customers

 

Beverly, MA (October 27, 2021) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the third quarter and nine months ended September 30, 2021.

 

Business Review and Outlook

 

Michael Prior, Chief Executive Officer, commented, “The Alaska Communications acquisition has significantly increased the scale of ATN’s domestic operations and has opened additional opportunities for us to pursue growth initiatives that also provide significant social and economic benefits by bringing high speed connectivity to the communities we serve.

 

“The addition of approximately ten weeks of Alaska Communications operations was the major driver of a nearly three-fold increase in our US Telecom segment revenues, with fiber-based services to enterprise, government, wholesale and residential customers representing the majority of that growth. Higher FirstNet construction revenues also contributed to the increase. Additionally, we experienced growth in our legacy domestic business in the western U.S. due to higher consumer broadband revenues following our late 2020 build out of rural broadband networks under various government programs and public-private initiatives. ATN now owns and operates approximately 6,000 fiber route miles in the U.S., and with more federal government funding becoming available to help connect rural communities to true high speed data access, we have allocated additional resources to capture opportunities to build-out rural middle mile fiber networks and fiber and fixed wireless connections. This is a priority for the strategic transformation of our legacy domestic wholesale roaming business into a broader fiber-based communications platform, and it is in keeping with our corporate mission of bringing reliable and affordable access to the modern communications infrastructure to historically underbuilt areas.

 

1

 

“International Telecom revenue increased in the third quarter, reflecting the positive performance of several of our key international markets, where upgrades and expansions of our networks and effective marketing campaigns have resulted in continued subscriber growth. We are pleased with the third quarter and year-to-date revenue performance of this segment and see additional growth opportunities on the horizon. Higher expense levels in part reflected a difficult comparison with the unusually low operating costs we had during the pandemic and increased regulatory costs. While supply chain disruptions have not had a material effect on our business year-to-date, we continue to monitor this potential given its impact on other communications infrastructure and technology companies.

 

“Looking ahead, we see opportunities to drive additional revenue growth in both of our business segments. We are continuing to expand our networks and offerings in several of our International Telecom markets where we see the potential to increase penetration and market share. Domestically, in addition to rural network buildouts in the “lower 48”, we continue to upgrade and extend our fiber network in Alaska, adding wholesale, enterprise and residential connections to grow our customer base utilizing that expanded network reach and capability,” Mr. Prior noted.

 

Third Quarter 2021 Results

 

Third quarter 2021 consolidated revenues of $166.8 million were up 49% compared to the prior year quarter’s revenue of $111.7 million. The Company closed the acquisition of Alaska Communications in late July, which contributed $46.8 million to third quarter revenues. The third quarter of 2021 had an operating loss of $1.0 million and Adjusted EBITDA2 of $36.8 million, compared with the prior year quarter’s operating income of $9.6 million and Adjusted EBITDA2 of $31.2 million. The decrease in operating income was mostly the result of increased transaction-related fees and amortization expenses from the consolidation of Alaska Communications results. The Adjusted EBITDA2 increase was due to the addition of $10.6 million from Alaska Communications, partially offset by a net decline in the International Telecom segment. The net loss attributable to ATN’s stockholders for the third quarter was $2.6 million, and a $0.22 loss per share, compared with the prior year period’s net income attributable to ATN’s stockholders of $2.7 million, or $0.17 income per diluted share.

 

Third Quarter 2021 Operating Highlights

 

The Company recorded financial results during the third quarter of 2021 in three categories: (i) International Telecom; (ii) US Telecom; and (iii) All Other. For the purposes of the below presentation, the Company’s Renewable Energy segment has been combined with Corporate and Other as “All Other”.

 

The Company completed its acquisition of Alaska Communications on July 22, 2021, and the consolidated results are included in the Company’s US Telecom segment.

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.

 

2

 

Operating Results (in Thousands)

 

Three Months Ended September 30, 2021

 

   International   US       Total 
   Telecom   Telecom   All Other*   ATN 
Revenue  $85,306   $81,454   $0   $166,760 
Operating Income (Loss)  $13,213   $(9,830)  $(4,365)  $(982)
EBITDA1  $26,940   $7,559   $(3,126)  $31,373 
Adjusted EBITDA2  $26,872   $16,404   $(6,463)  $36,813 
Capital Expenditures**  $10,642   $17,364   $983   $28,989 

 

Nine Months Ended September 30, 2021

 

   International   US       Total 
   Telecom   Telecom   All Other*   ATN 
Revenue  $255,342   $159,375   $418   $415,135 
Operating Income (Loss)  $40,999   $(10,920)  $(24,808)  $5,271 
EBITDA1  $82,341   $16,740   $(20,793)  $78,288 
Adjusted EBITDA2  $82,276   $23,820   $(19,380)  $86,716 
Capital Expenditures**  $32,485   $36,157   $2,280   $70,922 

 

Three Months Ended September 30, 2020

 

   International   US       Total 
   Telecom   Telecom   All Other*   ATN 
Revenue  $82,465   $28,097   $1,177   $111,739 
Operating Income (Loss)  $16,024   $2,218   $(8,685)  $9,557 
EBITDA1  $29,695   $7,947   $(6,505)  $31,137 
Adjusted EBITDA2  $29,695   $7,943   $(6,474)  $31,164 
Capital Expenditures**  $8,510   $8,371   $1,816   $18,697 
                     

 

Nine Months Ended September 30, 2020

 

   International   US       Total 
   Telecom   Telecom   All Other*   ATN 
Revenue  $244,812   $83,557   $3,374   $331,743 
Operating Income (Loss)  $44,119   $6,241   $(26,481)  $23,879 
EBITDA1  $86,239   $23,572   $(19,843)  $89,968 
Adjusted EBITDA2  $86,252   $23,573   $(19,650)  $90,175 
Capital Expenditures**  $28,439   $17,254   $4,969   $50,662 

 

*For this table presentation, the Renewable Energy segment and Corporate and Other results were combined. See table 4 for the separate presentation of the financial performance of these items.

 

**Includes capital expenditures reimbursable from customers of $2,192 and $8,700 for the three and nine months ended September 30, 2021, respectively, and $502 and $1,870 for the three and nine months ended September 30, 2020, respectively.

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.

 

3

 

International Telecom

 

International Telecom revenues are generated by delivery of a broad range of communications and managed IT services, including data, voice and video services from the Company’s fixed and mobile network operations in Bermuda and the Caribbean, and include direct government payments as part of the FCC high-cost support program in the USVI. International Telecom revenues were $85.3 million for the quarter, a 3% increase year-on-year mainly due to subscriber and ARPU growth which drove increases in mobility and fixed revenues in multiple markets, partially offset by the loss of $1.4 million in FCC high-cost support in the USVI. Carrier services revenues also increased as travel and tourism increased in the U.S. Virgin Islands. Operating expenses increased in most of the markets compared with the prior year as operating expenses returned to normalized pre-pandemic levels and due to the introduction of higher regulatory fees in Guyana earlier in 2021. As a result, when compared with the prior year quarter, operating income of $13.2 million and Adjusted EBITDA2 of $26.9 million decreased by 18% and 10%, respectively, for the third quarter of 2021.

 

US Telecom

 

US Telecom revenues consist of broadband, carrier services, managed IT services, fixed enterprise, and mobile retail revenues from the Company’s networks and operations in Alaska and in the western United States, including various government programs such as CAF II, E-Rate, Lifeline and rural healthcare support programs. US Telecom segment revenues were $81.5 million in the quarter, up $53.4 million from the prior year period. This increase was mostly due to the addition of $46.8 million of revenues from Alaska Communications, as well as $6.0 million of increased construction revenue related to the FirstNet contract build. Adjusted EBITDA2 for the quarter was $16.4 million compared to the prior year period’s Adjusted EBITDA2 of $7.9 million. This increase was driven by the addition of the Alaska Communications results of $10.6 million partially offset by approximately $2.0 million of additional expenses in our private network operations. For the segment, the current period’s operating loss was $9.8 million compared to the prior year’s operating income of $2.2 million, primarily due to $8.8 million of transaction-related fees and amortization expense related to the Alaska Communications acquisition and the additional expenses in our private network operations.

 

By the end of the third quarter of 2021, the Company had completed and activated approximately 50% of the total sites related to the network build portion of its FirstNet Agreement and expects to complete an additional 15% of the total build by the end of 2021. Revenues from the build will continue to be largely offset by construction costs.

 

Balance Sheet and Cash Flow Highlights

 

Total cash, cash equivalents and restricted cash on September 30, 2021 totaled $102.4 million. On July 22, 2021 the Company completed the acquisition of Alaska Communications for approximately $339.5 million. The acquisition was funded through a draw under the Company’s existing revolving credit facility of which $65.0 million is outstanding, an equity contribution from our financial partner and proceeds from Alaska Communications new credit agreement that is non-recourse to the Company. At the end of the quarter, Alaska Communications had outstanding a $210.0 million term loan facility and $10.0 million drawn under its $35.0 million revolving facility.

 

Net cash provided by operating activities was $47.7 million for the nine months ended September 30, 2021, compared with $71.6 million for the prior year period. The decline in operating cash flow compared with the prior year is mostly the result of a current year decrease in operating income and a $25.7 million increase in the FirstNet construction customer receivable. For the nine months ended September 30, 2021, the Company used net cash of $50.3 million for investing and financing activities compared to $97.6 million for the prior year period. The net use of cash was primarily attributable to $339.5 million used to purchase Alaska Communications offset by net borrowings of $285.0 million and $71.5 million of partner equity contributions, mentioned above, $70.9 million in capital expenditures, $13.1 million of purchases of minority equity interests in our subsidiaries, $13.0 million in repurchases of Company common stock and dividends to Company stockholders, and $4.8 million in minority partner distributions. These uses of cash were partially offset by $7.1 million in grants received, $18.6 million in net proceeds received from the completion of the Vibrant Energy equity sale and $27.5 million in new borrowings under the FirstNet receivables credit facility.

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure. 

 

4

 

Conference Call Information

 

ATN will host a conference call on Thursday, October 28, 2021 at 10:00 a.m. Eastern Time (ET) to discuss its third quarter 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 7087676. A replay of the call will be available at ir.atni.com beginning at approximately 1:00 p.m. (ET) on Thursday, October 28, 2021.

 

About ATN

 

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, operates communications and technology businesses in the United States and internationally, including the Caribbean region, with a particular focus on markets with a need for growing demand for infrastructure investments and technology improvements. Our operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential and business customers, including a range of high-speed internet and data services, fixed and mobile wireless solutions, video and voice services, and (ii) carrier and enterprise communication services, wholesale communications infrastructure services such as terrestrial and submarine fiber optic transport, communications tower facilities, managed mobile networks, and in-building wireless 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 the impact of the novel coronavirus pandemic on the economies of the markets we serve, and on our business and operations; expectations regarding future revenues, operating income, EBITDA and capital expenditures; the competitive environment in our key markets, demand for our services and industry trends; our expectations regarding construction progress under our FirstNet agreement and the effect such progress will have on our financial results; our expectations regarding the benefits of our acquisition of Alaska Communications; the impact of federal support program revenues; our liquidity; the organization of our business; 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 retention of and future growth of our subscriber base, including growth in our private networks business; (2) our ability to successfully integrate our newly acquired Alaska Communications business with our own and realize cost synergies and expansion plans; (3) our ability to satisfy the needs and demands of our major wireless customers; (4) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address rapid and significant technological changes in the telecommunications industry; (5) government regulation of our businesses, which may impact our telecommunications licenses, our revenue and our operating costs; (6) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (7) economic, political and other risks and opportunities facing our operations, including those resulting from the pandemic; (8) the loss of, or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (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 and our ability to secure the appropriate level of insurance coverage for these assets; (11) increased competition; (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; and (13) our continued access to capital and credit markets. 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, 2020, filed with the SEC on March 1, 2021, those set forth under Item 1A “Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, filed with the SEC on August 9, 2021 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.

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure 

 

5

 

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, the Company has included EBITDA and Adjusted EBITDA in this release and in the tables included herein.

 

EBITDA is defined as operating income (loss) before depreciation and amortization expense. The Company has defined Adjusted EBITDA as operating income (loss) before depreciation and amortization expense, transaction-related charges and the gain (loss) on disposition of assets. The Company believes that the inclusion of these non-GAAP financial measures help 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.

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.

 

6

 

 

  Table 1
  ATN International, Inc.
  Unaudited Condensed Consolidated Balance Sheets
  (in Thousands)

 
   September 30,   December 31, 
   2021   2020 
Assets:        
   Cash and cash equivalents  $101,268   $103,925 
   Restricted cash   1,096    1,072 
   Assets held-for-sale   -    34,735 
   Customer receivable   3,430    1,227 
   Other current assets   143,911    99,106 
   Total current assets   249,705    240,065 
   Property, plant and equipment, net   915,834    536,462 
   Operating lease right-of-use assets   122,422    63,235 
   Customer receivable - long term   33,096    9,614 
   Goodwill and other intangible assets, net   228,985    181,769 
   Other assets   77,342    52,566 
Total assets  $1,627,384   $1,083,711 
Liabilities, Mezzanine Equity and Stockholders’ Equity:          
   Current portion of long-term debt  $3,762   $3,750 
   Current portion of customer receivable credit faciity   3,295    - 
   Taxes payable   9,350    7,501 
   Current portion of lease liabilities   14,256    12,371 
   Liabilities held-for-sale   -    717 
   Other current liabilities   172,347    123,589 
   Total current liabilities   203,010    147,928 
   Long-term debt, net of current portion  $345,073   $69,073 
   Customer receivable credit facility, net of current portion   22,486    - 
   Deferred income taxes   21,776    10,675 
   Lease liabilities   96,031    51,082 
   Other long-term liabilities   135,614    50,617 
Total liabilities   823,990    329,375 
Mezzanine Equity   71,820    - 
Stockholders' Equity          
   Total ATN International, Inc.’s stockholders’ equity   629,292    645,649 
   Non-controlling interests   102,282    108,687 
Total stockholders' equity   731,574    754,336 
Total liabilities, mezzanine equity and stockholders’ equity  $1,627,384   $1,083,711 

 

7

 

 

                      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, 
   2021   2020   2021   2020 
Revenues:                
   Communications services  $155,298   $108,721   $378,897   $322,865 
   Other   11,462    3,018    36,238    8,878 
   Total revenue   166,760    111,739    415,135    331,743 
Operating expenses (excluding depreciation and amortization unless otherwise indicated):                    
   Cost of services   70,732    45,106    168,717    137,545 
   Cost of construction revenue   5,855    390    27,997    390 
   Selling, general and administrative   53,360    35,079    131,705    103,633 
   Transaction-related charges   5,696    31    7,823    147 
   Depreciation   28,875    21,157    68,693    64,705 
   Amortization of intangibles from acquisitions   3,480    423    4,324    1,384 
   (Gain) loss on disposition of long-lived assets   (256)   (4)   605    60 
Total operating expenses   167,742    102,182    409,864    307,864 
Operating income (loss)   (982)   9,557    5,271    23,879 
Other income (expense):                    
   Interest expense, net   (3,396)   (1,243)   (5,640)   (3,664)
   Other income (expense)   (385)   (2,031)   1,923    (4,341)
   Other income (expense), net   (3,781)   (3,274)   (3,717)   (8,005)
Income (loss) before income taxes   (4,763)   6,283    1,554    15,874 
   Income tax expense (benefit)   (288)   92    (1,535)   (1,057)
Net Income (loss)   (4,475)   6,191    3,089    16,931 
Net (income) loss attributable to non-controlling interests, net   1,856    (3,530)   (986)   (10,538)
Net income (loss) attributable to ATN International, Inc. stockholders  $(2,619)  $2,661   $2,103   $6,393 
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:                    
  Basic Net Income  $(0.22)  $0.17   $0.08   $0.40 
  Diluted Net Income  $(0.22)  $0.17   $0.08   $0.40 
Weighted average common shares outstanding:                    
   Basic   15,860    15,962    15,891    15,946 
    Diluted   15,860    16,011    15,901    15,991 

 

8

 

 

 

              Table 3  
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
     
   Nine Months Ended September 30, 
   2021   2020 
   Net income  $3,089   $16,931 
   Depreciation   68,693    64,705 
   Amortization of intangibles from acquisitions   4,324    1,384 
   Provision for doubtful accounts   3,303    4,452 
   Amortization of debt discount and debt issuance costs   767    395 
   Loss on disposition of assets and assets held-for-sale   605    60 
   Stock-based compensation   5,116    4,608 
   Deferred income taxes   (5,939)   (6,078)
   (Gain) loss on equity investments   (647)   3,360 
   Unrealized (gain) loss on foreign currency   (81)   449 
   Increase in customer receivable   (25,684)   - 
   Change in prepaid and accrued income taxes   (2,106)   620 
   Change in other operating assets and liabilities   (3,724)   (19,295)
       Net cash provided by operating activities   47,716    71,591 
           
   Capital expenditures   (62,222)   (48,792)
   Reimbursable capital expenditures   (8,700)   (1,870)
   Purchase of businesses, net of $11.9 million of acquired cash   (340,152)   - 
   Purchases of intangible assets, including deposits   -    (20,396)
   Purchases of strategic investments   (6,399)   (2,768)
   Purchases of short-term investments   -    (116)
   Receipt of government grants   7,094    - 
   Proceeds from strategic investments   -    11,969 
   Sale of business, net of transferred cash of $0.9 million and $0 million, respectively   18,597    - 
       Net cash used in investing activities   (391,782)   (61,973)
           
   Dividends paid on common stock   (8,118)   (8,166)
   Distributions to non-controlling interests   (4,823)   (6,503)
   Principal repayments of term loan   (2,821)   (2,814)
   New borrowings, net of repayments   285,000    - 
   Proceeds from mezzanine equity   71,533    - 
   Payment of debt issuance costs   (6,568)   (1,096)
   Proceeds from customer receivable credit facility   27,540    - 
   Repayment of customer receivable credit facility   (1,005)   - 
   Purchases of common stock - stock-based compensation   (1,713)   (1,733)
   Proceeds from stock option exercises   383    - 
   Purchases of common stock - share repurchase plan   (4,836)   (6,589)
   Repurchases of non-controlling interests   (13,139)   (8,763)
       Net cash provided by (used in) financing activities   341,433    (35,664)
           
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash   -    (87)
           
Net change in total cash, cash equivalents and restricted cash   (2,633)   (26,133)
           
Total cash, cash equivalents and restricted cash, beginning of period   104,997    162,358 
Total cash, cash equivalents and restricted cash, end of period  $102,364   $136,225 

 

9 

 

 

                   Table 4 
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
                     
For the three months ended September 30, 2021 is as follows:
                     
   International Telecom   US Telecom   Renewable Energy   Corporate and Other  *   Total 
Statement of Operations Data:                         
Revenue                         
   Mobility                         
        Business  $1,422   $231   $-   $-   $1,653 
        Consumer   22,423    1,909    -    -    24,332 
        Total  $23,845   $2,140   $-   $-   $25,985 
                          
   Fixed                         
        Business  $16,549   $21,681   $-   $-   $38,230 
        Consumer   40,870    15,484    -    -    56,354 
        Total  $57,419   $37,165   $-   $-   $94,584 
                          
  Carrier Services  $2,557   $31,939   $-   $-   $34,496 
  Other   233    -    -    -    233 
Total Communications Services  $84,054   $71,244   $-   $-   $155,298 
                          
  Managed services  $1,252   $3,793   $-   $-   $5,045 
  Construction   -    6,417    -    -    6,417 
                          
Total Other  $1,252   $10,210   $-   $-   $11,462 
                          
Total Revenue  $85,306   $81,454   $-   $-   $166,760 
                          
Depreciation  $13,308   $14,327   $-   $1,240   $28,875 
Amortization of intangibles from acquisitions  $418   $3,062   $-   $-   $3,480 
Total operating expenses  $72,093   $91,284   $55   $4,310   $167,742 
Operating Income (Loss)  $13,213   $(9,830)  $(55)  $(4,310)  $(982)
Stock-based compensation  $36   $101   $-   $1,468   $1,605 
Non-controlling interest ( net income or (loss) )  $(2,337)  $4,193   $-   $-   $1,856 
                          
Non GAAP measures:                         
EBITDA (1)  $26,939   $7,559   $(55)  $(3,070)  $31,373 
Adjusted EBITDA (2)  $26,872   $16,404   $(56)  $(6,407)  $36,813 
                          
Balance Sheet Data (at September 30, 2021):                         
Cash, cash equivalents and investments  $52,106   $38,143   $2,476   $8,543   $101,268 
Total current assets   116,271    116,852    6,322    10,260    249,705 
Fixed assets, net   448,062    457,154    -    10,618    915,834 
Total assets   650,023    870,281    20,500    86,580    1,627,384 
Total current liabilities   84,092    93,612    356    24,950    203,010 
Total debt   70,142    239,474    -    65,000    374,616 

 

*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments

 

10 

 

 

 

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

 

For the three months ended September 30, 2020 is as follows:

 

   International
Telecom		   US Telecom   Renewable
Energy		   Corporate and
Other  *		   Total 
Statement of Operations Data:                         
Revenue                         
Mobility                         
Business  $1,108   $136   $-   $-   $1,244 
Consumer   20,298    2,296    -    -    22,594 
Total  $21,406   $2,432   $-   $-   $23,838 
                          
Fixed                         
Business  $16,516   $1,954   $-   $-   $18,470 
Consumer   40,848    3,465    -    -    44,313 
Total  $57,364   $5,419   $-   $-   $62,783 
                          
Carrier Services  $1,851   $19,852   $-   $-   $21,703 
Other   397    -    -    -    397 
Total Communications Services  $81,018   $27,703   $-   $-   $108,721 
                          
Renewable Energy  $-   $-   $1,177   $-   $1,177 
Managed services   1,447    -    -    -    1,447 
Construction   -    394    -    -    394 
                          
Total Other  $1,447   $394   $1,177   $-   $3,018 
                          
Total Revenue  $82,465   $28,097   $1,177   $-   $111,739 
                          
Depreciation  $13,248   $5,729   $491   $1,689   $21,157 
Amortization of intangibles from acquisitions  $423   $-   $-   $-   $423 
Total operating expenses  $66,441   $25,879   $1,275   $8,587   $102,182 
Operating Income (Loss)  $16,024   $2,218   $(98)  $(8,587)  $9,557 
Stock-based compensation  $29   $-   $66   $1,792   $1,887 
Non-controlling interest ( net income or (loss) )  $(2,762)  $(786)  $18   $-   $(3,530)
                          
Non GAAP measures:                         
EBITDA (1)  $29,695   $7,947   $393   $(6,898)  $31,137 
Adjusted EBITDA (2)  $29,695   $7,943   $393   $(6,867)  $31,164 

 

*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments

 

11 

 

 

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

 

For the nine months ended September 30, 2021 is as follows:

 

   International
Telecom		   US Telecom   Renewable
Energy		   Corporate and
Other  *		   Total 
Statement of Operations Data:                         
Revenue                         
Mobility                         
Business  $3,917   $1,149   $-   $-   $5,066 
Consumer   64,503    6,258    -    -    70,761 
Total  $68,420   $7,407   $-   $-   $75,827 
                          
Fixed                         
Business  $50,037   $26,409   $-   $-   $76,446 
Consumer   125,255    23,004    -    -    148,259 
Total  $175,292   $49,413   $-   $-   $224,705 
                          
Carrier Services  $6,963   $70,713   $-   $-   $77,676 
Other   689    -    -    -    689 
                          
Total Communications Services  $251,364   $127,533   $-   $-   $378,897 
                          
Renewable Energy  $-   $-   $418   $-   $418 
Managed services   3,978    3,793    -    -    7,771 
Construction   -    28,049    -    -    28,049 
                          
Total Other  $3,978   $31,842   $418   $-   $36,238 
                          
Total Revenue  $255,342   $159,375   $418   $-   $415,135 
                          
Depreciation  $40,080   $24,598   $188   $3,827   $68,693 
Amortization of intangibles from acquisitions  $1,262   $3,062   $-   $-   $4,324 
Total operating expenses  $214,343   $170,295   $1,906   $23,320   $409,864 
Operating Income (Loss)  $40,999   $(10,920)  $(1,488)  $(23,320)  $5,271 
Stock-based compensation  $83   $-   $22   $4,911   $5,016 
Non-controlling interest ( net income or (loss) )  $(5,857)  $4,075   $796   $-   $(986)
                          
Non GAAP measures:                         
EBITDA (1)  $82,341   $16,740   $(1,300)  $(19,493)  $78,288 
Adjusted EBITDA (2)  $82,276   $23,820   $(110)  $(19,270)  $86,716 

 

*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments

 

12 

 

 

                     
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
                     
For the nine months ended September 30, 2020 is as follows:
                     
   International
Telecom		   US Telecom   Renewable
Energy		   Corporate and Other  *   Total 
Statement of Operations Data:                         
Revenue                         
   Mobility                         
        Business  $3,136   $140             $3,276 
        Consumer   57,468    7,063    -    -    64,531 
        Total  $60,604   $7,203   $-   $-   $67,807 
                          
   Fixed                         
        Business  $51,115   $6,676   $-   $-   $57,791 
        Consumer   121,305    8,505              129,810 
        Total  $172,420   $15,181   $-   $-   $187,601 
                          
  Carrier Services  $5,392   $60,779   $-   $-   $66,171 
  Other   1,286    -    -    -    1,286 
Total Communications Services  $239,702   $83,163   $-   $-   $322,865 
                          
  Renewable Energy  $-   $-   $3,374   $-   $3,374 
  Managed services   5,110    -    -    -    5,110 
  Construction   -    394    -    -    394 
                          
Total Other  $5,110   $394   $3,374   $-   $8,878 
                          
Total Revenue  $244,812   $83,557   $3,374   $-   $331,743 
                          
Depreciation  $40,736   $17,331   $1,590   $5,048   $64,705 
Amortization of intangibles from acquisitions  $1,384   $-   $-   $-   $1,384 
Total operating expenses  $200,693   $77,316   $4,549   $25,306   $307,864 
Operating Income (Loss)  $44,119   $6,241   $(1,175)  $(25,306)  $23,879 
Stock-based compensation  $20   $-   $197   $4,391   $4,608 
Non-controlling interest ( net income or (loss) )  $(7,770)  $(2,880)  $112   $-   $(10,538)
                          
Non GAAP measures:                         
EBITDA (1)  $86,239   $23,572   $415   $(20,258)  $89,968 
Adjusted EBITDA (2)  $86,252   $23,573   $545   $(20,195)  $90,175 

 

*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.

 

13

 

 

                     
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at December 31, 2020
                     
   International Telecom   US Telecom   Renewable Energy   Corporate and Other  *   Total 
Balance Sheet Data (at December 31, 2020):                         
Cash, cash equivalents and investments  $45,848   $26,921   $4,311   $26,845   $103,925 
Total current assets   107,315    65,806    39,057    27,887    240,065 
Fixed assets, net   449,888    73,717    -    12,857    536,462 
Total assets   642,834    265,797    39,045    136,035    1,083,711 
Total current liabilities   80,875    43,200    1,038    22,815    147,928 
Total debt   72,823    -    -    -    72,823 

 

(1) See Table 5 for reconciliation of Operating Income to EBITDA

(2) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA

*Corporate and Other refer to corporate overhead expenses and consolidating adjustments

 

ATN International, Inc.
Selected Segment Operational Information
(In Thousands)
at September 30, 2021
                     
   Quarter ended 
   September 30,   December 31,   March 31,   June 30,   September 30, 
   2020   2020   2021   2021   2021 
International Telecom Operational Data:                         
                          
Mobile - Subscribers *                         
   Pre-Paid   244,700    257,200    261,900    273,400    276,400 
   Post-Paid   43,100    44,700    45,500    46,400    49,300 
   Total   287,800    301,900    307,400    319,800    325,700 
                          
Mobile - Churn   1.77%   2.18%   2.28%   2.21%   2.67%
                          
Fixed - Subscribers*                         
   Broadband   136,800    140,100    142,900    143,000    143,900 
   Video   35,800    35,800    35,300    33,600    33,100 
   Voice   163,700    164,300    165,500    165,800    166,200 

 

* Counts were adjusted for all periods presented based upon a change in methodology and process

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure

 

14

 

 

      

          Table 5
           
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
           
For the three months ended September 30, 2021 is as follows:

 

   International
Telecom		   US Telecom   Renewable
Energy		   Corporate and
Other  *		   Total 
Operating income (loss)  $13,213   $(9,830)  $(55)  $(4,310)  $(982)
Depreciation expense   13,308    14,327    -    1,240    28,875 
Amortization of intangibles from acquisitions   418    3,062    -    -    3,480 
EBITDA  $26,939   $7,559   $(55)  $(3,070)  $31,373 
                          
Transaction-related charges   -    9,033    -    (3,337)   5,696 
(Gain) Loss on disposition of assets   (67)   (188)   (1)   -    (257)
ADJUSTED EBITDA  $26,872   $16,404   $(56)  $(6,407)  $36,813 
                          
Revenue   85,306    81,454    -    -    166,760 
ADJUSTED EBITDA MARGIN   31.5%   20.1%   NA    NA    22.1%

           
For the three months ended September 30, 2020 is as follows:

 

   International
Telecom		   US Telecom   Renewable
Energy		   Corporate and
Other  *		   Total 
Operating income (loss)  $16,024   $2,218   $(98)  $(8,587)  $9,557 
Depreciation expense   13,248    5,729    491    1,689    21,157 
Amortization of intangibles from acquisitions   423    -    -    -    423 
EBITDA  $29,695   $7,947   $393   $(6,898)  $31,137 
                          
Transaction-related charges   -    -    -    31    31 
(Gain) Loss on disposition of assets   -    (4)   -    -    (4)
ADJUSTED EBITDA  $29,695   $7,943   $393   $(6,867)  $31,164 
                          
Revenue   82,465    28,097    1,177    -    111,739 
ADJUSTED EBITDA MARGIN   36.0%   28.3%   33.4%   NA    27.9%

 

15

 

   

ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
           
For the nine months ended September 30, 2021 is as follows:

 

   International
Telecom		   US Telecom   Renewable
Energy		   Corporate and
Other  *		   Total 
Operating income (loss)  $40,999   $(10,920)  $(1,488)  $(23,320)  $5,271 
Depreciation expense   40,080    24,598    188    3,827    68,693 
Amortization of intangibles from acquisitions   1,262    3,062    -    -    4,324 
EBITDA  $82,341   $16,740   $(1,300)  $(19,493)  $78,288 
                          
Transaction-related charges   -    7,257    566    -    7,823 
(Gain) Loss on disposition of assets   (65)   (177)   624    223    605 
ADJUSTED EBITDA  $82,276   $23,820   $(110)  $(19,270)  $86,716 
                          
Revenue   255,342    159,375    418    -    415,135 
ADJUSTED EBITDA MARGIN   32.2%   14.9%   -26.4%   NA    20.9%

           
For the nine months ended September 30, 2020 is as follows:

 

   International
Telecom		   US Telecom  

Renewable

Energy

   Corporate and
Other  *		   Total 
Operating income (loss)  $44,119   $6,241   $(1,175)  $(25,306)  $23,879 
Depreciation expense   40,736    17,331    1,590    5,048    64,705 
Amortization of intangibles from acquisitions   1,384    -    -    -    1,384 
EBITDA  $86,239   $23,572   $415   $(20,258)  $89,968 
                          
Transaction-related charges   -    -    84    63    147 
(Gain) Loss on disposition of assets   13    1    46    -    60 
ADJUSTED EBITDA  $86,252   $23,573   $545   $(20,195)  $90,175 
                          
Revenue   244,812    83,557    3,374    -    331,743 
ADJUSTED EBITDA MARGIN   35.2%   28.2%   16.2%   NA    27.2%

 

1 See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure.

2 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.

 

16