ATN International Inc.
04/28/2022 | Press release | Distributed by Public on 04/28/2022 04:09
ATN Reports First Quarter 2022 Results and Reiterates Financial Outlook - Form 8-K
ATN Reports First Quarter 2022 Results and
Reiterates Financial Outlook
First Quarter 2022 Results
| · | Revenues increased to $172.0 million from $124.5 million a year ago, primarily due to the successful acquisition of Alaska Communications. |
| · | Net loss was $0.9 million versus net income of $2.7 million a year ago. |
| · | EBITDA1 increased to $36.7 million from $23.9 million a year ago. |
| · | Adjusted EBITDA2 increased to $40.6 million from $24.7 million a year ago. |
| · | Capital expenditures were $34.5 million. |
| · | Total cash, cash equivalents and restricted cash was $76.8 million as of March 31, 2022. |
Beverly, MA (April 27, 2022) -- ATN International, Inc. ("ATN" or the "Company") (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported results for the first quarter ended March 31, 2022.
"We started off 2022 on the right foot, expanding our subscriber counts and reach in multiple markets," commented Michael Prior, Chief Executive Officer of ATN. "With a persistent focus on being first to fiber, we are rapidly deploying fiber optic facilities and other high-speed solutions in the communities we serve. More communities, homes, businesses, schools, and even other carriers now have access to world-class connectivity as a result. Customers up and down the value chain are very appreciative of these in-roads, and we continue to build relationships for the long term.
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.
1
"Staying true to our roots, we brought digital connectivity to more remote areas in the quarter. This included connecting ten Navajo Nation Consortium schools and bringing fiber to five new communities in Guyana, greatly improving broadband capacity for residents, businesses and schools in these coastal and inland mining towns. We currently have more than half a million homes passed by our broadband networks, up 92% from a year ago, and we are now capable of delivering higher-speed data services to 38% of our residential subscribers. We expect to continue to increase the number of homes, schools and businesses passed by our high-speed services as well as the number of customers subscribed to those services throughout the year which should be reflected in our financial results through revenue growth and margin improvement.
"Looking ahead, as we advance our network builds, strategic initiatives and augmented sales and marketing capabilities, we remain confident in our 2022 and three-year forecasts. We continue to see attractive investment opportunities in many of our markets with good growth potential. We plan to further expand our offerings of higher-speed services via fiber and other high-speed data solutions to capture this sizable opportunity," added Prior.
First Quarter 2022 Financial Results
First quarter 2022 consolidated revenues were $172.0 million, up 38% compared with $124.5 million in the same period a year ago. The Company reported operating income of $0.1 million and Adjusted EBITDA2 of $40.6 million compared with an operating income of $3.3 million and Adjusted EBITDA2 of $24.7 million in the same period a year ago. The increase in revenue and Adjusted EBITDA2 was mostly driven by the addition of Alaska Communications' results. The decrease in operating income for the quarter was mainly driven by $3.4 million of one-time losses on disposed assets in both the Company's US and International Telecom businesses. Net loss attributable to ATN stockholders for the first quarter was $1.0 million, or $0.13 loss per share, compared with net income attributable to ATN stockholders of $2.7 million, or $0.17 income per diluted share, in the same period a year ago.
First Quarter 2022 Operating Segment Results
The Company recorded financial results during the first quarter of 2022 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 the Company's Corporate segment and Other segment as "All Other."
2
Operating Results (in Thousands)
| For Three Months Ended March 31, 2022 and 2021 | ||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
| International | International | US | US | Total | Total | |||||||||||||||||||||||||||
| Telecom | Telecom | Telecom | Telecom | All Other* | All Other* | ATN | ATN | |||||||||||||||||||||||||
| Revenue | $ | 86,787 | $ | 83,820 | $ | 85,232 | $ | 40,272 | $ | - | $ | 418 | $ | 172,019 | $ | 124,510 | ||||||||||||||||
| Operating Income (Loss) | $ | 11,802 | $ | 13,116 | $ | (4,635 | ) | $ | (534 | ) | $ | (7,059 | ) | $ | (9,233 | ) | $ | 108 | $ | 3,349 | ||||||||||||
| EBITDA1 | $ | 26,117 | $ | 26,942 | $ | 16,647 | $ | 4,659 | $ | (6,106 | ) | $ | (7,744 | ) | $ | 36,658 | $ | 23,857 | ||||||||||||||
| Adjusted EBITDA2 | $ | 27,148 | $ | 26,941 | $ | 19,578 | $ | 4,648 | $ | (6,094 | ) | $ | (6,885 | ) | $ | 40,632 | $ | 24,704 | ||||||||||||||
| Capital Expenditures** | $ | 15,170 | $ | 10,506 | $ | 19,095 | $ | 14,939 | $ | 203 | $ | 235 | $ | 34,468 | $ | 25,680 |
*For this table presentation, the Renewable Energy segment results and Corporate and Other segment results were combined. See table 4 for the separate presentation of the financial performance of these segments.
**Includes capital expenditures reimbursable from customers of $0.2 million and $6.2 million for the three months ended March 31, 2022, and the three months ended March 31, 2021, respectively.
International Telecom
International Telecom revenues3 were $86.8 million for the quarter, up 4% year-over-year. This increase was mainly due to mobility subscriber growth as well as higher carrier services revenue, partially offset by a decline in federal high-cost support subsidies for the U.S. Virgin Islands. Increased travel and tourism in the U.S. Virgin Islands and Bermuda contributed to the increases in segment revenues. Operating expenses for the quarter increased incrementally year-over-year as the Company's operations returned to pre-pandemic levels and the Company invested in brand positioning to expand its subscriber base in certain markets. The International Telecom segment reported operating income of $11.8 million and Adjusted EBITDA2 of $27.1 million in the quarter, compared with operating income of $13.1 million and Adjusted EBITDA2 of $26.9 million in the prior year period. The year-over-year changes were due to higher operating expenditures offsetting the increase in segment revenues, and the impact of a one-time loss on disposed assets in the quarter.
3 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.
3
US Telecom
US Telecom segment revenues4 were $85.2 million in the quarter, more than doubling from $40.3 million in the prior year period. Business and carrier services revenues accounted for approximately 75% of the segment's services revenues in the first quarter of 2022. Operating loss was $4.6 million compared with $0.5 million in the same period a year ago. This increase in operating loss was mainly due to lower profitability in the Company's legacy US Telecom business and one-time losses on disposed assets. Adjusted EBITDA2 was $19.6 million in the quarter compared with $4.6 million in the same period a year ago. The increase in segment revenue and Adjusted EBITDA2 was mainly due to the consolidation of Alaska Communications, partially offset by the reduction in legacy wholesale wireless revenues. The increase in Adjusted EBITDA2 was also driven by the consolidation of Alaska Communications and expense reductions associated with the Company's private networks business, partially offset by the year-over-year increases in network costs due to the completion of additional FirstNet sites.
By the end of the first quarter of 2022, the Company had completed and activated just over 60% of the total sites related to the network build portion of its long-term FirstNet Agreement. The Company expects to complete an additional 30% of the total build by the end of 2022 and that revenues from the build will be largely offset by construction costs incurred in the same period.
Balance Sheet and Cash Flow Highlights
As of March 31, 2022, the Company had total cash, cash equivalents and restricted cash of $76.8 million, compared with $80.7 million as of December 31, 2021.
Net cash provided by operating activities was $11.4 million for the three months ended March 31, 2022, compared with $5.3 million for the three months ended March 31, 2021. The year-over-year increase in operating cash flow was due to the increase in EBITDA in the first quarter of 2022, which offset net reductions in working capital. For the three months ended March 31, 2022, the Company used net cash of $15.2 million for investing and financing activities, compared to $18.0 million for the three months ended March 31, 2021. The net use of cash was primarily attributable to $34.5 million in capital expenditures, $2.5 million of purchases of minority equity interests in the Company's subsidiaries and $3.6 million in dividends to Company stockholders and repurchases of Company common stock. These uses of cash were partially offset by net borrowings of $21.0 million under revolving credit agreements.
4 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.
4
Quarterly Dividends and Stock Buybacks
On March 28, 2022, ATN announced that its Board of Directors had declared a quarterly dividend of $0.17 per share, payable on April 15, 2022, on all common shares outstanding to stockholders of record as of April 8, 2022. In the first quarter of 2022, the Company utilized cash on hand to repurchase $0.9 million in common stock.
2022 Guidance
The Company is reiterating its outlook for 2022 financial performance, originally provided on February 23, 2022, within its fourth quarter and full year 2021 earnings release. The foundation of the Company's full year 2022 financial targets is based on continued capital investments in the range of $150 to $160 million (net of reimbursed amounts), primarily in network expansion and upgrades, which are expected to drive subscriber and revenue growth. The Company expects its Adjusted EBITDA levels to increase in the latter part of the year and to be in the range of $165 to $170 million for the full year5. The Company expects its revenue and Adjusted EBITDA growth to be supported by the contribution of a full year of business results from Alaska Communications.
Three Year Outlook
The Company is reiterating its targets to be achieved in the three-year period ending in 2024, originally provided on February 23, 2022 within its fourth quarter and full year 2021 earnings release. These goals are largely based on, and in line with, the Company's continuing investments in its Glass and Steel™ and "fiber-first" platform strategies, which the Company anticipates will drive compound annual revenue growth (excluding construction revenues) of 4-6%, leading to 2024 revenue in the range of $770 to $810 million. The Company also expects compound annual Adjusted EBITDA growth of 8-10% for the three-year period ending in 20245, outpacing its expected compound annual revenue growth rate over the same period. Capital expenditures are expected to return to more normalized levels of 10-15% of revenues after the three-year investment period ending in 2024. The Company's Net Debt Ratio6 is expected to be less than 1.5x at the end of the three-year period ending in 20245.
5 For the Company's 2022 Guidance Adjusted EBITDA and Three Year Outlook Adjusted EBITDA and Net Debt Ratio, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see "Use of Non-GAAP Financial Measures" below for a full description of items excluded from the Company's expected Adjusted EBITDA and Net Debt Ratio.
6 Net Debt Ratio, a non-GAAP measure, is defined as total Debt less Cash and Cash Equivalents divided by Adjusted EBITDA - see Table 6.
5
The Company will provide updates to the market on this strategy and outlook from time to time as it progresses going forward.
Strategic Progress Highlights
The Company believes that its Glass and Steel™ and "first-to-fiber" market strategies are important for its long-term success and sees a rapidly growing need for more bandwidth and reliable connectivity. Deploying capital for growth in fiber and fiber-fed high-speed data solutions to more homes, businesses, schools, cell sites, and communities has led to increases in the Company's fiber footprint and broadband subscriber levels. Domestically, the addition of Alaska Communications has further accelerated the Company's reach.
From January 1, 2020 to the present, the Company has:
| · | Added 242,000 premises passed by broadband and 30,000 premises passed by higher-speed solutions7 . |
| · | Added approximately 64,700 broadband subscribers, an increase of 47%. |
| · | More than doubled terrestrial fiber facilities, adding over 6,000 route miles. |
| · | Expanded mobile data capacity in all markets and added over 56,000 mobile subscribers, an increase of 18%. |
Conference Call Information
ATN will host a conference call on Thursday, April 28, 2022, at 10:30 a.m. Eastern Time (ET) to discuss its first 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. The Conference ID is 7884416. A replay of the call will be available at ir.atni.com beginning at approximately 1:00 p.m. (ET) on Thursday, April 28, 2022.
About ATN
ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a provider of digital infrastructure and communications services in the United States and internationally, including the Caribbean region, with a focus on rural and remote markets with a growing demand for infrastructure investments. The Company's operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential, business and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and (ii) carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities. For more information, please visit www.atni.com.
7 Defined as download speeds of greater than 100 MBPS.
6
Cautionary Language Concerning Forward Looking Statements
This press release contains forward-looking statements relating to, among other matters, the Company's future financial performance, business goals and objectives, and results of operations, expectations regarding the transition of its US Telecom business, its future revenues, operating income, EBITDA, Adjusted EBITDA, and capital expenditures; the competitive environment in the Company's key markets, demand for the Company's services and industry trends; the Company's expectations regarding consumer and enterprise demand for its US Telecom services, expectations regarding the benefits of the Company's acquisition of Alaska Communications; the impact of federal support program and government subsidy revenues; the Company's liquidity; the organization of the Company's 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 Company's ability to successfully transition its US Telecom business away from wholesale wireless to other carrier and consumer-based services; (2) the general performance of the Company's operations, including operating margins, revenues, capital expenditures, and the retention of and future growth of the Company's subscriber base and ARPU; (3) the Company's ability to realize cost synergies and expansion plans for its Alaska Communications business; (4) the Company's ability to satisfy the needs and demands of the Company's major carrier customers; (5) the Company's ability to efficiently and cost-effectively upgrade the Company's networks and information technology platforms to address rapid and significant technological changes in the telecommunications industry; (6) government subsidy program availability and regulation of the Company's businesses, which may impact the Company's telecommunications licenses, the Company's revenue and the Company's operating costs; (7) the Company's reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to the Company's network infrastructure; (8) economic, political and other risks and opportunities facing the Company's operations, including those resulting from the pandemic; (9) the loss of, or an inability to recruit skilled personnel in the Company's various jurisdictions, including key members of management; (10) the Company's ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (11) the occurrence of weather events and natural catastrophes and the Company's ability to secure the appropriate level of insurance coverage for these assets; (12) increased competition; (13) the adequacy and expansion capabilities of the Company's network capacity and customer service system to support the Company's customer growth; and (14) the Company's 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, 2021, filed with the SEC on March 16, 2022 and the other reports the Company files from time to time with the SEC. The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors that may affect such forward-looking statements, except as required by law.
7
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, Adjusted EBITDA and Net Debt Ratio 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, one-time impairment or special charges and the gain (loss) on disposition of assets. Net Debt Ratio is defined as total debt less cash and cash equivalents divided by the four quarters ended total Adjusted EBITDA at the measurement date. The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. Management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company's core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release. While non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating the Company's own operating results over different periods of time, the Company urges investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.
8
Contact:
Justin D. Benincasa
Chief Financial Officer
ATN International, Inc.
978-619-1300
Polly Pearson
Investor Relations [email protected]
9
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 75,748 | $ | 79,601 | ||||
| Restricted cash | 1,097 | 1,096 | ||||||
| Customer receivable | 4,336 | 4,145 | ||||||
| Other current assets | 139,660 | 147,775 | ||||||
| Total current assets | 220,841 | 232,617 | ||||||
| Property, plant and equipment, net | 933,875 | 943,209 | ||||||
| Operating lease right-of-use assets | 118,091 | 118,843 | ||||||
| Customer receivable - long term | 40,206 | 39,652 | ||||||
| Goodwill and other intangible assets, net | 194,937 | 198,164 | ||||||
| Other assets | 82,757 | 76,119 | ||||||
| Total assets | $ | 1,590,707 | $ | 1,608,604 | ||||
| Liabilities, Redeemable Non-controlling interests and Stockholders' Equity: | ||||||||
| Current portion of long-term debt | $ | 3,743 | $ | 4,665 | ||||
| Current portion of customer receivable credit facility | 5,280 | 4,620 | ||||||
| Taxes payable | 6,680 | 5,681 | ||||||
| Current portion of lease liabilities | 16,953 | 16,201 | ||||||
| Other current liabilities | 152,070 | 189,777 | ||||||
| Total current liabilities | 184,726 | 220,944 | ||||||
| Long-term debt, net of current portion | $ | 348,463 | $ | 327,111 | ||||
| Customer receivable credit facility, net of current portion | 36,515 | 30,148 | ||||||
| Deferred income taxes | 21,651 | 21,460 | ||||||
| Lease liabilities | 91,494 | 91,719 | ||||||
| Other long-term liabilities | 140,246 | 142,033 | ||||||
| Total liabilities | 823,095 | 833,415 | ||||||
| Redeemable Non-controlling interests | 74,052 | 72,936 | ||||||
| Stockholders' Equity | ||||||||
| Total ATN International, Inc.'s stockholders' equity | 594,792 | 601,250 | ||||||
| Non-controlling interests | 98,768 | 101,003 | ||||||
| Total stockholders' equity | 693,560 | 702,253 | ||||||
| Total liabilities, Redeemable Non-controlling interests and stockholders' equity | $ | 1,590,707 | $ | 1,608,604 |
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Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| Revenues: | ||||||||
| Communications services | $ | 166,543 | $ | 110,636 | ||||
| Construction | 1,987 | 12,306 | ||||||
| Other | 3,489 | 1,568 | ||||||
| Total revenue | 172,019 | 124,510 | ||||||
| Operating expenses (excluding depreciation and amortization unless otherwise indicated): | ||||||||
| Cost of services and other | 73,011 | 49,507 | ||||||
| Cost of construction revenue | 2,033 | 12,606 | ||||||
| Selling, general and administrative | 56,343 | 37,693 | ||||||
| Transaction-related charges | 554 | 730 | ||||||
| Depreciation | 33,292 | 20,111 | ||||||
| Amortization of intangibles from acquisitions | 3,258 | 397 | ||||||
| Loss on disposition of assets | 3,420 | 117 | ||||||
| Total operating expenses | 171,911 | 121,161 | ||||||
| Operating income | 108 | 3,349 | ||||||
| Other income (expense): | ||||||||
| Interest expense, net | (3,312 | ) | (1,153 | ) | ||||
| Other income (expense) | 4,199 | 2,375 | ||||||
| Other income, net | 887 | 1,222 | ||||||
| Income before income taxes | 995 | 4,571 | ||||||
| Income tax expense | 2,952 | 295 | ||||||
| Net income (loss) | (1,957 | ) | 4,276 | |||||
| Net income (loss) attributable to non-controlling interests, net | 1,009 | (1,570 | ) | |||||
| Net income (loss) attributable to ATN International, Inc. stockholders | $ | (948 | ) | $ | 2,706 | |||
| Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders: | ||||||||
| Basic Net Income (loss) | $ | (0.13 | ) | $ | 0.17 | |||
| Diluted Net Income (loss) | $ | (0.13 | ) | $ | 0.17 | |||
| Weighted average common shares outstanding: | ||||||||
| Basic | 15,708 | 15,902 | ||||||
| Diluted | 15,708 | 15,952 |
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Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Net income (loss) | $ | (1,957 | ) | $ | 4,276 | |||
| Depreciation | 33,292 | 20,111 | ||||||
| Amortization of intangibles from acquisitions | 3,258 | 397 | ||||||
| Provision for doubtful accounts | 1,913 | 1,122 | ||||||
| Amortization of debt discount and debt issuance costs | 501 | 168 | ||||||
| Loss on disposition of long-lived assets | 3,420 | 117 | ||||||
| Stock-based compensation | 1,461 | 1,336 | ||||||
| Deferred income taxes | 191 | (2,504 | ) | |||||
| Gain on equity investments | (4,222 | ) | (2,188 | ) | ||||
| Unrealized (gain) loss on foreign currency | - | (81 | ) | |||||
| Increase in customer receivable | (746 | ) | (12,579 | ) | ||||
| Change in prepaid and accrued income taxes | 8,969 | 1,810 | ||||||
| Change in other operating assets and liabilities | (34,692 | ) | (6,662 | ) | ||||
| Net cash provided by operating activities | 11,388 | 5,323 | ||||||
| Capital expenditures | (34,220 | ) | (19,495 | ) | ||||
| Reimbursable capital expenditures | (248 | ) | (6,185 | ) | ||||
| Purchases of strategic investments | - | (4,155 | ) | |||||
| Receipt of government grants | - | 3,292 | ||||||
| Sale of business, net of transferred cash of $0 and $0.9 million, respectively | - | 18,597 | ||||||
| Net cash used in investing activities | (34,468 | ) | (7,946 | ) | ||||
| Dividends paid on common stock | (2,672 | ) | (2,703 | ) | ||||
| Distributions to non-controlling interests | (263 | ) | (3,530 | ) | ||||
| Finance leases | (338 | ) | - | |||||
| Term loan - repayments | (938 | ) | (938 | ) | ||||
| Revolving credit facility - borrowings | 36,500 | - | ||||||
| Revolving credit facility - repayments | (15,500 | ) | - | |||||
| Payment of debt issuance costs | - | 53 | ||||||
| Proceeds from customer receivable credit facility | 8,000 | 10,814 | ||||||
| Repayment of customer receivable credit facility | (1,003 | ) | - | |||||
| Purchases of common stock - stock-based compensation | (1,136 | ) | (1,677 | ) | ||||
| Purchases of common stock - share repurchase plan | (941 | ) | (540 | ) | ||||
| Repurchases of non-controlling interests | (2,481 | ) | (11,522 | ) | ||||
| Net cash provided by (used in) financing activities | 19,228 | (10,043 | ) | |||||
| Net change in total cash, cash equivalents and restricted cash | (3,852 | ) | (12,666 | ) | ||||
| Total cash, cash equivalents and restricted cash, beginning of period | 80,697 | 104,997 | ||||||
| Total cash, cash equivalents and restricted cash, end of period | $ | 76,845 | $ | 92,331 |
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Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended March 31, 2022 is as follows:
| International Telecom | US Telecom | Renewable Energy | Corporate and Other * | Total | ||||||||||||||||
| Statement of Operations Data: | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Mobility | ||||||||||||||||||||
| Business | $ | 3,616 | $ | 374 | $ | - | $ | - | $ | 3,990 | ||||||||||
| Consumer | 19,970 | 1,456 | - | - | 21,426 | |||||||||||||||
| Total | $ | 23,586 | $ | 1,830 | $ | - | $ | - | $ | 25,416 | ||||||||||
| Fixed | ||||||||||||||||||||
| Business | $ | 17,254 | $ | 27,145 | $ | - | $ | - | $ | 44,399 | ||||||||||
| Consumer | 41,093 | 18,968 | - | - | 60,061 | |||||||||||||||
| Total | $ | 58,347 | $ | 46,113 | $ | - | $ | - | $ | 104,460 | ||||||||||
| Carrier Services | $ | 3,402 | $ | 32,989 | $ | - | $ | - | $ | 36,391 | ||||||||||
| Other | 276 | - | - | - | 276 | |||||||||||||||
| Total Communications Services | $ | 85,611 | $ | 80,932 | $ | - | $ | - | $ | 166,543 | ||||||||||
| Construction | $ | - | $ | 1,987 | $ | - | $ | - | $ | 1,987 | ||||||||||
| Managed services | $ | 1,176 | $ | 2,313 | $ | - | $ | - | $ | 3,489 | ||||||||||
| Total Other | $ | 1,176 | $ | 2,313 | $ | - | $ | - | $ | 3,489 | ||||||||||
| Total Revenue | $ | 86,787 | $ | 85,232 | $ | - | $ | - | $ | 172,019 | ||||||||||
| Depreciation | $ | 13,897 | $ | 18,442 | $ | - | $ | 953 | $ | 33,292 | ||||||||||
| Amortization of intangibles from acquisitions | $ | 418 | $ | 2,840 | $ | - | $ | - | $ | 3,258 | ||||||||||
| Total operating expenses | $ | 74,984 | $ | 89,868 | $ | 23 | $ | 7,036 | $ | 171,911 | ||||||||||
| Operating income (loss) | $ | 11,802 | $ | (4,635 | ) | $ | (23 | ) | $ | (7,036 | ) | $ | 108 | |||||||
| Stock-based compensation | $ | 60 | $ | 90 | $ | - | $ | 1,310 | $ | 1,460 | ||||||||||
| Non-controlling interest ( net income or (loss) ) | $ | (1,519 | ) | $ | 2,528 | $ | - | $ | - | $ | 1,009 | |||||||||
| Non GAAP measures: | ||||||||||||||||||||
| EBITDA (1) | $ | 26,117 | $ | 16,647 | $ | (23 | ) | $ | (6,083 | ) | $ | 36,658 | ||||||||
| Adjusted EBITDA (2) | $ | 27,148 | $ | 19,578 | $ | (23 | ) | $ | (6,071 | ) | $ | 40,632 | ||||||||
| Balance Sheet Data (at March 31, 2022): | ||||||||||||||||||||
| Cash, cash equivalents and investments | $ | 40,101 | $ | 29,285 | $ | 705 | $ | 5,957 | $ | 76,048 | ||||||||||
| Total current assets | 105,551 | 108,779 | 3,653 | 2,858 | 220,841 | |||||||||||||||
| Fixed assets, net | 448,064 | 476,491 | - | 9,320 | 933,875 | |||||||||||||||
| Total assets | 623,497 | 868,338 | 17,053 | 81,818 | 1,590,706 | |||||||||||||||
| Total current liabilities | 80,857 | 87,434 | 356 | 16,079 | 184,726 | |||||||||||||||
| Total debt | 63,342 | 259,159 | - | 71,500 | 394,001 |
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
13
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended March 31, 2021 is as follows:
| International Telecom | US Telecom | Renewable Energy | Corporate and Other * | Total | ||||||||||||||||
| Statement of Operations Data: | ||||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Mobility | ||||||||||||||||||||
| Business | $ | 1,197 | $ | 576 | $ | - | $ | - | $ | 1,773 | ||||||||||
| Consumer | 20,624 | 2,284 | - | - | 22,908 | |||||||||||||||
| Total | $ | 21,821 | $ | 2,860 | $ | - | $ | - | $ | 24,681 | ||||||||||
| Fixed | ||||||||||||||||||||
| Business | $ | 16,634 | $ | 2,696 | $ | - | $ | - | $ | 19,330 | ||||||||||
| Consumer | 42,114 | 3,674 | - | - | 45,788 | |||||||||||||||
| Total | $ | 58,748 | $ | 6,370 | $ | - | $ | - | $ | 65,118 | ||||||||||
| Carrier Services | $ | 1,883 | $ | 18,736 | $ | - | $ | - | $ | 20,619 | ||||||||||
| Other | 218 | - | - | - | 218 | |||||||||||||||
| Total Communications Services | $ | 82,670 | $ | 27,966 | $ | - | $ | - | $ | 110,636 | ||||||||||
| Construction | $ | - | $ | 12,306 | $ | - | $ | - | $ | 12,306 | ||||||||||
| Renewable Energy | $ | - | $ | - | $ | 418 | $ | - | $ | 418 | ||||||||||
| Managed services | 1,150 | - | - | - | 1,150 | |||||||||||||||
| Total Other | $ | 1,150 | $ | - | $ | 418 | $ | - | $ | 1,568 | ||||||||||
| Total Revenue | $ | 83,820 | $ | 40,272 | $ | 418 | $ | - | $ | 124,510 | ||||||||||
| Depreciation | $ | 13,429 | $ | 5,193 | $ | 188 | $ | 1,301 | $ | 20,111 | ||||||||||
| Amortization of intangibles from acquisitions | $ | 397 | $ | - | $ | - | $ | - | $ | 397 | ||||||||||
| Total operating expenses | $ | 70,704 | $ | 40,806 | $ | 1,080 | $ | 8,571 | $ | 121,161 | ||||||||||
| Operating income (loss) | $ | 13,116 | $ | (534 | ) | $ | (662 | ) | $ | (8,571 | ) | $ | 3,349 | |||||||
| Stock-based compensation | $ | 37 | $ | 15 | $ | 22 | $ | 1,262 | $ | 1,336 | ||||||||||
| Non-controlling interest ( net income or (loss) ) | $ | (1,690 | ) | $ | (676 | ) | $ | 796 | $ | - | $ | (1,570 | ) | |||||||
| Non GAAP measures: | ||||||||||||||||||||
| EBITDA (1) | $ | 26,942 | $ | 4,659 | $ | (474 | ) | $ | (7,270 | ) | $ | 23,857 | ||||||||
| Adjusted EBITDA (2) | $ | 26,941 | $ | 4,648 | $ | (1 | ) | $ | (6,884 | ) | $ | 24,704 |
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at December 31, 2021
| International Telecom | US Telecom | Renewable Energy | Corporate and Other * | Total | ||||||||||||||||
| Balance Sheet Data (at December 31, 2021): | ||||||||||||||||||||
| Cash, cash equivalents and investments | $ | 43,128 | $ | 28,486 | $ | 659 | $ | 7,628 | $ | 79,901 | ||||||||||
| Total current assets | 108,677 | 111,741 | 3,585 | 8,614 | 232,617 | |||||||||||||||
| Fixed assets, net | 452,856 | 480,250 | - | 10,103 | 943,209 | |||||||||||||||
| Total assets | 630,515 | 877,041 | 17,481 | 83,567 | 1,608,604 | |||||||||||||||
| Total current liabilities | 91,090 | 108,950 | 356 | 20,548 | 220,944 | |||||||||||||||
| Total debt | 64,243 | 240,802 | - | 61,499 | 366,544 |
(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
14
ATN International, Inc.
Selected Segment Operational Information
| As of | As of | |||||||
| December 31, | March 31, | |||||||
| 2021 | 2022 | |||||||
| Consolidated Operational Data #: | ||||||||
| Fiber Route Miles | 9,058 | 9,127 | ||||||
| Fiber Connected Towers * | 394 | 394 | ||||||
| Owned Towers ** | 398 | 398 | ||||||
| Broadband Homes Passed - total | 502,400 | 502,400 | ||||||
| Broadband Homes Passed - by HSD *** | 187,300 | 190,200 | ||||||
| % Broadband Homes Passed by HSD *** | 37 | % | 38 | % | ||||
| Broadband Customers | 203,700 | 204,000 | ||||||
| HSD *** Capable Customers | 98,100 | 101,800 | ||||||
| % HSD*** Capable Customers | 48 | % | 50 | % |
| Quarter ended | ||||||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | March 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2022 | ||||||||||||||||
| International Telecom Operational Data: | ||||||||||||||||||||
| Mobile - Subscribers # | ||||||||||||||||||||
| Pre-Paid | 261,900 | 273,400 | 276,400 | 285,800 | 291,900 | |||||||||||||||
| Post-Paid | 45,700 | 46,600 | 49,200 | 49,800 | 50,200 | |||||||||||||||
| Total | 307,600 | 320,000 | 325,600 | 335,600 | 342,100 | |||||||||||||||
| Mobile - Blended Churn | 2.26 | % | 2.19 | % | 2.68 | % | 2.73 | % | 2.86 | % |
# Data presented may differ from prior reported quarter to reflect more accurate data and/or changes in calculation methodology and process.
* All cell sites, including rooftops, that the company serves with its own fiber
** All geographically distinct cell sites, including towers and other structures
*** HSD is defined as download speeds > 100 Mbs
15
Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the three months ended March 31, 2022 is as follows:
|
International Telecom |
US Telecom |
Renewable Energy |
Corporate and Other * |
Total | ||||||||||||||||
| Operating income (loss) | $ | 11,802 | $ | (4,635 | ) | $ | (23 | ) | $ | (7,036 | ) | $ | 108 | |||||||
| Depreciation expense | 13,897 | 18,442 | - | 953 | 33,292 | |||||||||||||||
| Amortization of intangibles from acquisitions | 418 | 2,840 | - | - | 3,258 | |||||||||||||||
| EBITDA | $ | 26,117 | $ | 16,647 | $ | (23 | ) | $ | (6,083 | ) | $ | 36,658 | ||||||||
| Transaction-related charges | - | 542 | - | 12 | 554 | |||||||||||||||
| Loss on disposition of assets | 1,031 | 2,389 | - | - | 3,420 | |||||||||||||||
| ADJUSTED EBITDA | $ | 27,148 | $ | 19,578 | $ | (23 | ) | $ | (6,071 | ) | $ | 40,632 | ||||||||
| Revenue | 86,787 | 85,232 | - | - | 172,019 | |||||||||||||||
| ADJUSTED EBITDA MARGIN | 31.3 | % | 23.0 | % | NA | NA | 23.6 | % |
For the three months ended March 31, 2021 is as follows:
| International Telecom | US Telecom | Renewable Energy | Corporate and Other * | Total | ||||||||||||||||
| Operating income (loss) | $ | 13,116 | $ | (534 | ) | $ | (662 | ) | $ | (8,571 | ) | $ | 3,349 | |||||||
| Depreciation expense | 13,429 | 5,193 | 188 | 1,301 | 20,111 | |||||||||||||||
| Amortization of intangibles from acquisitions | 397 | - | - | - | 397 | |||||||||||||||
| EBITDA | $ | 26,942 | $ | 4,659 | $ | (474 | ) | $ | (7,270 | ) | $ | 23,857 | ||||||||
| Transaction-related charges | - | - | 566 | 164 | 730 | |||||||||||||||
| (Gain) Loss on disposition of assets | (1 | ) | (11 | ) | (93 | ) | 222 | 117 | ||||||||||||
| ADJUSTED EBITDA | $ | 26,941 | $ | 4,648 | $ | (1 | ) | $ | (6,884 | ) | $ | 24,704 | ||||||||
| Revenue | 83,820 | 40,272 | 418 | - | 124,510 | |||||||||||||||
| ADJUSTED EBITDA MARGIN | 32.1 | % | 11.5 | % | -0.2 | % | NA | 19.8 | % |
16
Table 6
ATN International, Inc.
Non GAAP Measure - Net Debt Ratio
(in Thousands, Except per Share Data)
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Current portion of long-term debt | $ | 3,743 | $ | 4,665 | ||||
| Long-term debt, net of current portion | 348,463 | 327,111 | ||||||
| Total debt | $ | 352,206 | $ | 331,776 | ||||
| Less: Cash and cash equivalents | 75,748 | 79,601 | ||||||
| Net Debt | $ | 276,458 | $ | 252,175 | ||||
| Adjusted EBITDA - for the four quarters ended | $ | 144,977 | $ | 129,047 | ||||
| Net Debt Ratio | 1.91 | 1.95 |
17