EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

6 Months Ended

Jun. 30, 2022

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

12. EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

Earnings Per Share

The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Numerator:
Net income (loss) attributable to ATN International, Inc. stockholders		(525)		2,019		(1,471)		4,723
Less: Preferred dividends		(1,154)		—		(2,270)		—
Net income (loss) attributable to ATN International, Inc. common stockholders	$	(1,679)	$	2,019	$	(3,741)	$	4,723
Denominator:
Weighted-average shares outstanding- Basic		15,749		15,912		15,736		15,907
Effective of dilutive securities:
Stock options, restricted stock units and performance stock units		—		9		—		23
Weighted-average shares outstanding- Diluted		15,749		15,921		15,736		15,930

For each of the three and six months ended June 30, 2021, the calculations of basic and diluted weighted average shares of common stock outstanding do not include 5,000 shares relating to stock options as the effects of those options were anti-dilutive.

Redeemable Noncontrolling Interests

In connection with the Alaska Transaction, the Company has accounted for the Freedom 3 Investment as redeemable noncontrolling interests in its consolidated financial statements. The redeemable noncontrolling interests consist of $22.6 million of redeemable common units and $48.3 million of redeemable preferred units. The common units contain a put option allowing the holder to sell the common units to a subsidiary of the Company at the then fair market value. The put option is solely the obligation of Alaska Communications and is nonrecourse to the Company. The put option begins at the earlier of a future initial public offering of the Alaska Communications operations or July 2028. The fair value of the common units remained at $22.6 million at June 30, 2022, unchanged from the value at July 22, 2021. The redeemable preferred equity carries a 9% preferred dividend which compounds quarterly. The preferred units contain a put option allowing the holder to sell the preferred units to a subsidiary of the Company at the unpaid issue price plus unpaid dividends. The put option is solely the obligation of Alaska Communications and is nonrecourse to the Company. The put option begins at the earlier of a future initial public offering of the Alaska Communications operations or July 2028. The unpaid preferred dividend was $4.3 million at June 30, 2022.

For the three and six months ended June 30, 2022, the Company allocated losses of $0.6 million and $1.7 million, respectively, to the redeemable common units representing their proportionate share of operating losses. Additionally, the fair value of the redeemable common units increased by $1.7 million during the six months ended June 30, 2022.

The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for the six months ended June 30, 2022:

	Redeemable Preferred Units		Redeemable Common Units		Total Redeemable Noncontrolling Interests
Balance, December 31, 2021	$	50,296	$	22,640	$	72,936
Accrued preferred dividend		2,270		—		2,270
Allocated net loss		—		(1,678)		(1,678)
Change in fair value		—		1,678		1,678
Balance, June 30, 2022	$	52,566	$	22,640	$	75,206