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.
  • EBITDA

    1

    increased to $36.7 million from $23.9 million a year ago.
  • Adjusted EBITDA

    2

    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, Mass., April 27, 2022 (GLOBE NEWSWIRE) — 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.

“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 EBITDA

2

of $40.6 million compared with an operating income of $3.3 million and Adjusted EBITDA

2

of $24.7 million in the same period a year ago. The increase in revenue and Adjusted EBITDA

2

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.”



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

EBITDA


1

$ 26,117 $ 26,942 $ 16,647 $ 4,659 $ (6,106 ) $ (7,744 ) $ 36,658 $ 23,857

Adjusted EBITDA


2

$ 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 revenues

3

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 EBITDA

2

of $27.1 million in the quarter, compared with operating income of $13.1 million and Adjusted EBITDA

2

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.



US Telecom

US Telecom segment revenues

4

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 EBITDA

2

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 EBITDA

2

was mainly due to the consolidation of Alaska Communications, partially offset by the reduction in legacy wholesale wireless revenues. The increase in Adjusted EBITDA

2

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.



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 year

5

. 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 $700 to $810 million. The Company also expects compound annual Adjusted EBITDA growth of 8-10% for the three-year period ending in 2024

5

, 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 Ratio

6

is expected to be less than 1.5x at the end of the three-year period ending in 2024

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 solutions

    7

    .
  • 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.



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.



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.


Contact:

Justin D. Benincasa

Chief Financial Officer

ATN International, Inc.

978-619-1300

Polly Pearson

Investor Relations


[email protected]



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



Table 2


ATN International, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, Except per Share Data)
Three Months Ended
March 31,
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



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



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

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

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


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

%


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


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 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.


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.


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.


7

Defined as download speeds of greater than 100 MBPS.


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