Third Quarter 2015 Highlights:
ATN (NASDAQ:ATNI), today reported results for the third quarter
ended September 30, 2015. Unless otherwise indicated, the
discussion of the Company’s results is focused on its continuing
operations, and comparisons are to the same period in the prior
year.
Third Quarter 2015
Results
“Third quarter results were in line with our
overall expectations, reflecting a mix of factors affecting
revenues and operating profitability that are consistent with the
execution of our strategy,” said Michael Prior, Chief Executive
Officer.
Third quarter 2015 revenues were $96.8 million,
8% above the $89.4 million reported for the third quarter of
2014. U.S. wireless business revenues benefited from positive
year-on-year comparisons in retail operations and from a
significant increase in data traffic across the expanded wholesale
network. While lower contracted wholesale rates offset most of the
positive revenue impact of volume gains, the Company views this as
a value-enhancing strategy to generate steady long-term cash flows
and provide an attractive outsourced network model for its carrier
customers. Additionally, year-over-year comparisons benefited
from the addition of the solar operations acquired in late
2014.
Adjusted EBITDA1 for the third quarter was
$39.7 million, a 3% decrease over the $41.0 million reported for
the 2014 third quarter. Third quarter Adjusted EBITDA1
results in the U.S. Wireless business reflected increased operating
expenses related to expanded network coverage and the multiple
technologies utilized to support the growth in traffic volume. The
Company also incurred higher operating expenses this quarter in its
Guyana operations, where approximately one-half of the increase is
related to re-branding, legal and consulting expenses.”
Operating income was $22.5 million, down 20%
compared to last year’s $28.2 million due to $2.5 million of
one-time transaction-related charges, the increased expenses in
Guyana and the impact of the U.S. wholesale increased traffic
volume and reduced rates in the third quarter of 2015. Net
income from continuing operations attributable to ATN’s
stockholders was $6.6 million or $0.41 per diluted share, a
decrease from the $16.2 million or $1.01 per diluted share reported
in last year’s third quarter due in large part to reduced operating
income and an increase in the effective tax rate in the third
quarter of 2015.
Nine Month 2015 Financial
Results
Nine month revenues were $272.5 million, 10%
above the $247.8 million reported for the same period in
2014. Adjusted EBITDA1 was $114.3 million, up 10% from $104.1
million in the prior year period. Operating income was $70.4
million, up 7% compared to last year’s $66.0 million. Net
income attributable to ATN’s stockholders was $12.8 million or
$0.79 per diluted share compared with $35.5 million or $2.22 per
diluted share in the prior year’s period. Net income for the
nine months ended September 30, 2015 included a $19.9 million loss
related to the deconsolidation of the non-controlling interest from
the sale of our holdings in Turks and Caicos. Excluding this
one-time loss on deconsolidation, net income attributable to ATN’s
stockholders2 was $32.7 million, or $2.03 per diluted
share.
Acquisition Updates
“In October, we announced two strategically
important transactions that are aligned with our approach of
building out our service offerings in geographies where we see the
potential to create long term value.” said Michael Prior, Chief
Executive Officer. “With the Innovative acquisition, which we
expect to complete in mid-2016 pending regulatory approval, we will
significantly increase our footprint in the U.S. Virgin Islands,
adding wireline video, broadband and local voice services to our
existing mobile services there. Our acquisition of a controlling
interest in KeyTech Bermuda pairs our 43% ownership of CellOne with
their 42% ownership and adds wireline voice, broadband and video
services to our existing mobile services. KeyTech recently received
shareholder approval for the transaction and we are now awaiting
regulatory approval.
“Once completed, we expect these acquisitions to
add approximately $180 - $200 million in annualized revenues and we
are targeting normalized Adjusted EBITDA1 margins of 25% - 30% on a
combined basis, inclusive of our existing businesses in those
markets.
“In both cases, we are investing in markets and
geographies we know well, and where we will have the ability to
provide customers with a single connectivity solution for mobile
and fixed telecom and media services. After accounting for
the cash outlays associated with these agreements, ATN still will
have significant cash resources and debt capacity to invest in
organic growth projects and to deploy in additional acquisitions,
and we are actively reviewing opportunities in both categories,”
Mr. Prior noted. “In particular, we are seeing a pickup in
opportunities in the renewable energy segment and would like to put
additional capital to work there.”
1 See Table 4 for reconciliation of Net Income to Adjusted
EBITDA.
2 See Table 5 for reconciliation of Net Income Attributable
to ATN Stockholders to Net Income Attributable to ATN Stockholders
Excluding Loss on Deconsolidation.
Third Quarter 2015 Operating
Highlights
U.S. Wireless
U.S. wireless revenues primarily consist of
voice and data revenues from the Company's wholesale roaming
operations and the Company’s smaller retail operations. Total
revenues from the U.S. wireless business were $47.0 million in the
third quarter of 2015, an increase of 6% from the $44.3 million
reported in the third quarter of 2014. This increase was
mainly driven by an increase in U.S. retail revenues. U.S.
wholesale revenues were slightly above prior year levels in the
third quarter of 2015 as a result of expanded network and traffic
volume offsetting lower wholesale rates, but in this year’s fourth
quarter revenues are expected to be significantly below prior year
results as the full impact of recent rate reductions is felt. The
projected decline in the fourth quarter is partly due to traffic
volumes exceeding certain annual pricing tiers which should mean
that the associated revenues rebound in the first quarter of 2016.
Data revenues accounted for 66% of U.S. wireless revenues in the
2015 third quarter and 68% in the 2014 third quarter. The
Company ended the third quarter of 2015 with 799 domestic base
stations in service compared to 716 at the end of last year’s third
quarter.
International Wireless
International wireless revenues include retail
and wholesale voice and data wireless revenues from operations in
Bermuda and the Caribbean. International wireless revenues were
$20.4 million, a decrease of 5% from the $21.6 million reported in
the third quarter of 2014, as a result of the sale of our Turks and
Caicos operations in the first quarter of 2015, and lower wholesale
roaming revenues in many of our Island properties due to
anticipated rate declines. We expect retail revenues to
continue to grow but wholesale revenues to decline in our
international markets over time.
Wireline
Wireline revenues are generated by the Company's
wireline operations in Guyana, integrated voice and data and
wholesale transport operations in New England and New York State,
and domestic and international wholesale and retail long-distance
voice services. Wireline revenues were $21.8 million, up 1%
from $21.5 million in the third quarter of 2014 resulting mainly
from increases in broadband revenues in Guyana.
Renewable Energy
Renewable energy revenues are generated
principally by the sale of energy and solar renewable energy
credits from our 28 commercial solar projects. For the third
quarter of 2015, revenues from our renewable energy business were
$5.1 million, consistent with past quarters.
Reportable Operating
Segments
The Company has five reportable segments: (i)
U.S. Wireless; (ii) International Integrated Telephony, which
operates in Guyana; (iii) Island Wireless, which generates its
revenues and has its assets located in Bermuda and the Caribbean
(iv) U.S. Wireline; and (v) Renewable Energy, which provides
distributed generation solar power to corporate, utility and
municipal customers in the United States. Financial data on
our reportable operating segments for the three months ended
September 30, 2015 and 2014 are as follows (in thousands):
For the three months ended September 30,
2015:
|
U.S. Wireless |
International Integrated Telephony |
Island Wireless |
U.S. Wireline |
Renewable Energy |
Reconciling Items 3 |
Total |
|
|
|
|
|
|
|
|
Total Revenue |
$ |
47,679 |
|
$ |
22,537 |
|
$ |
15,368 |
|
$ |
6,146 |
|
$ |
5,052 |
|
$ |
- |
|
$ |
96,782 |
|
Adjusted EBITDA |
|
29,730 |
|
|
5,783 |
|
|
5,545 |
|
|
203 |
|
|
3,934 |
|
|
(5,545 |
) |
|
39,650 |
|
Operating Income (Loss) |
|
25,208 |
|
|
1,313 |
|
|
3,615 |
|
|
(990 |
) |
|
2,694 |
|
|
(9,316 |
) |
|
22,524 |
|
For the three months ended September 30, 2014:
|
U.S. Wireless |
International Integrated Telephony |
Island Wireless |
U.S. Wireline |
Renewable Energy |
Reconciling Items 3 |
Total |
|
|
|
|
|
|
|
|
Total Revenue |
$ |
44,736 |
|
$ |
21,831 |
|
$ |
16,627 |
|
$ |
6,199 |
|
n/a |
$ |
- |
|
$ |
89,393 |
|
Adjusted EBITDA |
|
31,242 |
|
|
9,462 |
|
|
4,827 |
|
|
722 |
|
n/a |
|
(5,280 |
) |
|
40,973 |
|
Operating Income (Loss) |
|
27,585 |
|
|
5,065 |
|
|
2,231 |
|
|
(471 |
) |
n/a |
|
(6,252 |
) |
|
28,158 |
|
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents at September 30, 2015
were $397.8 million. In addition, the Company holds $5.8
million of restricted cash related to our renewable energy
business. Net cash provided by operating activities of
continuing operations was $113.1 million for the first nine months
of 2015, compared with net cash provided by operating activities of
continuing operations of $51.0 million in the first nine months of
2014. The increase in the current year is due to increased
net income attributable to ATN’s stockholders2 excluding the loss
on deconsolidation, current year changes in working capital and
prior year tax payments. Capital expenditures were $46.0
million for the first nine months of 2015, and the Company expects
full year 2015 telecom capital expenditures in the range of $60.0
million to $70.0 million. Capital expenditures in the Renewable
Energy segment are more difficult to project, however the Company
continues to actively pursue investments in this segment.
Conference Call Information
ATN will host a conference call on Thursday,
October 29, 2015 at 9:30 a.m. Eastern Time (ET) to discuss its 2015
third quarter results. The call will be hosted by Michael Prior,
President 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 60797803.
A replay of the call will be available at ir.atni.com beginning at
1:00 p.m. (ET) on Thursday, October 29, 2015.
About ATN
ATN (Nasdaq:ATNI), headquartered
in Beverly, Massachusetts, provides telecommunications
services to rural, niche and other under-served markets and
geographies in the United States, Bermuda and
the Caribbean and owns and operates solar power systems
in select locations in the United States. Through our
operating subsidiaries, we (i) provide both wireless and wireline
connectivity to residential and business customers, including a
range of mobile wireless solutions, local exchange services and
broadband internet services, (ii) provide distributed solar
electric power to corporate, utility and municipal customers and
(iii) are the owner and operator of terrestrial and submarine fiber
optic transport 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; the competitive environment
in our key markets, demand for our services and industry trends;
the outcome of regulatory matters; the pace of our network
expansion and improvement, including our level of estimated future
capital expenditures and our realization of the benefits of these
investments; 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, and the future growth and
retention of our subscriber base and consumer demand for solar
power; (2) government regulation of our businesses, which may
impact our FCC and other telecommunications licenses or our
renewables business; (3) economic, political and other risks facing
our operations; (4) our ability to maintain favorable roaming
arrangements; (5) our ability to efficiently and cost-effectively
upgrade our networks and IT platforms to address rapid and
significant technological changes in the telecommunications
industry; (6) the loss of or an inability to recruit skilled
personnel in our various jurisdictions, including key members of
management; (7) our ability to find investment or acquisition or
disposition opportunities that fit our strategic goals for the
Company; (8) increased competition; (9) our ability to operate in
the renewable energy industry; (10) our reliance on a limited
number of key suppliers and vendors for timely supply of equipment
and services relating to our network infrastructure; (11) the
adequacy and expansion capabilities of our network capacity and
customer service system to support our customer growth; (12) the
occurrence of weather events and natural catastrophes; (13) our
continued access to capital and credit markets; (14) our ability to
realize the value that we believe exists in our businesses; and
(15) our ability to receive requisite regulatory consents and
approvals and satisfy other conditions needed to complete our
proposed acquisitions. 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, 2014, filed with the SEC on March 16, 2015 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.
Use of Non-GAAP Financial
Measures
In addition to financial measures prepared in
accordance with generally accepted accounting principles (GAAP),
this news release also contains non-GAAP financial measures.
Specifically, ATN has presented an Adjusted EBITDA measure and a
net income measure exclusive of the results of loss on the
deconsolidation of subsidiaries. Adjusted EBITDA is defined as net
income attributable to ATN stockholders before income from
discontinued operations, gain on disposal of discontinued
operations, interest, taxes, depreciation and amortization,
transaction-related charges, other income or expense, and net
income attributable to non-controlling interests. Net income
attributable to ATN stockholders excluding loss on deconsolidation
of subsidiary and the related earnings per diluted share is defined
as net income attributable to ATN stockholders less the loss and
tax impact of the deconsolidation of the subsidiary. 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 comparing such
performance with prior periods. ATN’s management uses these
non-GAAP measures, in addition to GAAP financial measures, as the
basis for measuring our core operating performance and comparing
such performance to that of prior periods. The non-GAAP financial
measures included in this news 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 used in this news release to the most directly
comparable GAAP financial measure is set forth in the text of, and
the accompanying tables to, this press release.
|
|
|
|
Table 1 |
|
|
ATLANTIC TELE-NETWORK, INC. |
|
|
Unaudited Condensed Consolidated Balance
Sheets |
|
|
(in Thousands) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
397,797 |
|
|
$ |
326,216 |
|
|
|
Restricted cash |
|
797 |
|
|
|
39,703 |
|
|
|
Assets of discontinued
operations |
|
44 |
|
|
|
175 |
|
|
|
Other current assets |
|
79,958 |
|
|
|
85,280 |
|
|
|
|
|
|
|
|
|
Total current assets |
|
478,596 |
|
|
|
451,374 |
|
|
|
|
|
|
|
|
|
Long-term restricted cash |
|
5,013 |
|
|
|
5,475 |
|
|
|
Property, plant and equipment,
net |
|
366,015 |
|
|
|
369,582 |
|
|
|
Goodwill and other intangible
assets, net |
|
90,277 |
|
|
|
91,080 |
|
|
|
Other assets |
|
6,557 |
|
|
|
7,519 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
946,458 |
|
|
$ |
925,030 |
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
Current portion of long-term
debt |
$ |
6,254 |
|
|
$ |
6,083 |
|
|
|
Liabilities of discontinued
operations |
|
1,293 |
|
|
|
1,247 |
|
|
|
Other current liabilities |
|
81,040 |
|
|
|
96,739 |
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
88,587 |
|
|
|
104,069 |
|
|
|
|
|
|
|
|
|
Long-term debt, net of current
portion |
$ |
28,141 |
|
|
$ |
32,794 |
|
|
|
Deferred income taxes |
|
37,694 |
|
|
|
30,366 |
|
|
|
Other long-term liabilities |
|
28,738 |
|
|
|
19,619 |
|
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
94,573 |
|
|
|
82,779 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
183,160 |
|
|
|
186,848 |
|
|
|
|
|
|
|
|
|
Total Atlantic Tele-Network, Inc.’s
stockholders’ equity |
|
679,516 |
|
|
|
677,222 |
|
|
|
Non-controlling interests |
|
83,782 |
|
|
|
60,960 |
|
|
|
|
|
|
|
|
|
Total equity |
|
763,298 |
|
|
|
738,182 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’
equity |
$ |
946,458 |
|
|
$ |
925,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 2 |
|
|
ATLANTIC TELE-NETWORK, INC. |
|
|
Unaudited Condensed Consolidated Statements of
Operations |
|
|
(in Thousands, Except per Share
Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
U.S. wireless |
$ |
47,047 |
|
|
$ |
44,306 |
|
|
$ |
122,993 |
|
|
$ |
110,153 |
|
|
|
International
wireless |
|
20,392 |
|
|
|
21,557 |
|
|
|
61,787 |
|
|
|
67,127 |
|
|
|
Wireline |
|
21,815 |
|
|
|
21,531 |
|
|
|
64,497 |
|
|
|
64,344 |
|
|
|
Renewable energy |
|
|
5,052 |
|
|
|
- |
|
|
|
15,631 |
|
|
|
- |
|
|
|
Equipment and
other |
|
2,476 |
|
|
|
1,999 |
|
|
|
7,545 |
|
|
|
6,212 |
|
|
|
Total revenue |
|
96,782 |
|
|
|
89,393 |
|
|
|
272,453 |
|
|
|
247,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Termination and access
fees |
|
21,343 |
|
|
|
19,321 |
|
|
|
60,827 |
|
|
|
58,188 |
|
|
|
Engineering and
operations |
|
10,631 |
|
|
|
7,525 |
|
|
|
26,218 |
|
|
|
21,508 |
|
|
|
Sales, marketing and
customer service |
|
5,797 |
|
|
|
5,827 |
|
|
|
16,315 |
|
|
|
16,499 |
|
|
|
Equipment expense |
|
3,431 |
|
|
|
2,924 |
|
|
|
10,093 |
|
|
|
8,938 |
|
|
|
General and
administrative |
|
15,930 |
|
|
|
12,823 |
|
|
|
44,743 |
|
|
|
38,596 |
|
|
|
Transaction-related
charges |
|
2,536 |
|
|
|
(27 |
) |
|
|
2,852 |
|
|
|
341 |
|
|
|
Depreciation and amortization |
|
|
14,590 |
|
|
|
12,842 |
|
|
|
43,813 |
|
|
|
37,752 |
|
|
|
Gain on disposition of
long-lived assets |
|
- |
|
|
|
- |
|
|
|
(2,823 |
) |
|
|
- |
|
|
|
Total
operating expenses |
|
74,258 |
|
|
|
61,235 |
|
|
|
202,038 |
|
|
|
181,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
22,524 |
|
|
|
28,158 |
|
|
|
70,415 |
|
|
|
66,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
(795 |
) |
|
|
(13 |
) |
|
|
(2,153 |
) |
|
|
(220 |
) |
|
|
Loss on deconsolidation of
subsidiary |
|
|
- |
|
|
|
- |
|
|
|
(19,937 |
) |
|
|
- |
|
|
|
Other income
(expense) |
|
53 |
|
|
|
338 |
|
|
|
114 |
|
|
|
302 |
|
|
|
Other income (expense),
net |
|
(742 |
) |
|
|
325 |
|
|
|
(21,976 |
) |
|
|
82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes |
|
21,782 |
|
|
|
28,483 |
|
|
|
48,439 |
|
|
|
66,096 |
|
|
|
Income tax expense |
|
10,134 |
|
|
|
9,569 |
|
|
|
22,655 |
|
|
|
22,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
11,648 |
|
|
|
18,914 |
|
|
|
25,784 |
|
|
|
43,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of tax |
|
- |
|
|
|
- |
|
|
|
390 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
11,648 |
|
|
|
18,914 |
|
|
|
26,174 |
|
|
|
43,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interests, net of
tax: |
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
(5,072 |
) |
|
|
(2,747 |
) |
|
|
(13,417 |
) |
|
|
(8,116 |
) |
|
|
Discontinued operations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Net income attributable
to non-controlling interests, net |
|
(5,072 |
) |
|
|
(2,747 |
) |
|
|
(13,417 |
) |
|
|
(8,116 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Atlantic Tele-Network, Inc.
stockholders |
$ |
6,576 |
|
|
$ |
16,167 |
|
|
$ |
12,757 |
|
|
$ |
35,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per weighted average share attributable to
Atlantic Tele-Network, Inc. stockholders: |
|
|
|
|
|
|
|
|
|
Income from continuing
operations |
$ |
0.41 |
|
|
$ |
1.02 |
|
|
$ |
0.77 |
|
|
$ |
2.24 |
|
|
|
Income from
discontinued operations |
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
|
Net income |
|
$ |
0.41 |
|
|
$ |
1.02 |
|
|
$ |
0.79 |
|
|
$ |
2.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per weighted average share attributable to
Atlantic Tele-Network, Inc. stockholders: |
|
|
|
|
|
|
|
|
|
Income from continuing
operations |
$ |
0.41 |
|
|
$ |
1.01 |
|
|
$ |
0.77 |
|
|
$ |
2.22 |
|
|
|
Income from
discontinued operations |
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
|
Net income |
|
$ |
0.41 |
|
|
$ |
1.01 |
|
|
$ |
0.79 |
|
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
16,049 |
|
|
|
15,923 |
|
|
|
16,009 |
|
|
|
15,890 |
|
|
|
Diluted |
|
16,165 |
|
|
|
16,030 |
|
|
|
16,128 |
|
|
|
16,001 |
|
|
|
|
|
Table 3 |
|
ATLANTIC TELE-NETWORK, INC. |
|
Unaudited Condensed Consolidated Cash Flow
Statement |
|
(in Thousands) |
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
Net income |
$ |
26,174 |
|
|
$ |
43,636 |
|
|
Income from
discontinued operations |
|
(390 |
) |
|
|
- |
|
|
Depreciation and
amortization |
|
43,813 |
|
|
|
37,752 |
|
|
Loss on deconsolidation
of subsidiary |
|
19,937 |
|
|
|
- |
|
|
Gain on disposition of
long-lived assets |
|
(2,823 |
) |
|
|
- |
|
|
Change in prepaid and
accrued taxes |
|
27,684 |
|
|
|
(18,401 |
) |
|
Change in other
operating assets and liabilities |
|
(6,817 |
) |
|
|
(12,092 |
) |
|
Other non-cash
activity |
|
4,967 |
|
|
|
4,766 |
|
|
|
|
|
|
|
Net cash provided by operating
activities of continuing operations |
|
112,545 |
|
|
|
55,661 |
|
|
Net cash provided by (used in)
operating activities of discontinued operations |
|
566 |
|
|
|
(4,612 |
) |
|
Net cash provided by operating
activities |
|
113,111 |
|
|
|
51,049 |
|
|
|
|
|
|
|
Capital expenditures,
net |
|
(46,031 |
) |
|
|
(41,699 |
) |
|
Acquisition of
business |
|
(11,968 |
) |
|
|
- |
|
|
Net proceeds from sale
of assets |
|
5,873 |
|
|
|
1,371 |
|
|
Change in restricted
cash |
|
39,368 |
|
|
|
38,707 |
|
|
|
|
|
|
|
Net cash used in investing
activities |
|
(12,758 |
) |
|
|
(1,621 |
) |
|
|
|
|
|
|
Dividends paid on
common stock |
|
(13,920 |
) |
|
|
(12,873 |
) |
|
Distributions to
non-controlling interests |
|
(11,363 |
) |
|
|
(7,931 |
) |
|
Other |
|
(3,489 |
) |
|
|
(805 |
) |
|
|
|
|
|
|
Net cash used in financing
activities |
|
(28,772 |
) |
|
|
(21,609 |
) |
|
|
|
|
|
|
Net change in cash and
cash equivalents |
|
71,581 |
|
|
|
27,819 |
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period |
|
326,216 |
|
|
|
356,607 |
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period |
$ |
397,797 |
|
|
$ |
384,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 |
|
|
ATLANTIC TELE-NETWORK, INC. |
|
|
Reconciliation of Non-GAAP
Measures |
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA for the Three Months Ended September 30, 2014 and
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014 |
|
|
|
U.S Wireless |
|
|
U.S. Wireline |
|
Reconciling Items |
Total |
|
|
International Integrated Telephony |
Island Wireless |
Renewable Energy |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Atlantic Tele-Network, Inc.
stockholders |
|
|
|
|
|
|
$ |
16,167 |
|
|
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
|
|
2,747 |
|
|
|
Income tax expense |
|
|
|
|
|
|
|
9,569 |
|
|
|
Other income |
|
|
|
|
|
|
|
(338 |
) |
|
|
Interest expense, net |
|
|
|
|
|
|
|
13 |
|
|
|
Operating income (loss) |
$ |
27,585 |
|
$ |
5,065 |
|
$ |
2,231 |
|
$ |
(471 |
) |
$ |
- |
|
$ |
(6,252 |
) |
$ |
28,158 |
|
|
|
Depreciation and amortization |
|
3,657 |
|
|
4,397 |
|
|
2,596 |
|
|
1,193 |
|
|
- |
|
|
999 |
|
|
12,842 |
|
|
|
Transaction-related charges |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(27 |
) |
|
(27 |
) |
|
|
Adjusted EBITDA |
$ |
31,242 |
|
$ |
9,462 |
|
$ |
4,827 |
|
$ |
722 |
|
$ |
- |
|
$ |
(5,280 |
) |
$ |
40,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2015 |
|
|
|
U.S Wireless |
|
|
U.S. Wireline |
|
Reconciling Items |
Total |
|
|
International Integrated Telephony |
Island Wireless |
Renewable Energy |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Atlantic Tele-Network, Inc.
stockholders |
|
|
|
|
|
|
$ |
6,576 |
|
|
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
|
|
5,072 |
|
|
|
Income tax expense |
|
|
|
|
|
|
|
10,134 |
|
|
|
Other income |
|
|
|
|
|
|
|
(53 |
) |
|
|
Interest expense, net |
|
|
|
|
|
|
|
795 |
|
|
|
Operating income (loss) |
$ |
25,208 |
|
$ |
1,313 |
|
$ |
3,615 |
|
$ |
(990 |
) |
$ |
2,694 |
|
$ |
(9,316 |
) |
$ |
22,524 |
|
|
|
Depreciation and amortization |
|
4,522 |
|
|
4,470 |
|
|
1,930 |
|
|
1,193 |
|
|
1,205 |
|
|
1,270 |
|
|
14,590 |
|
|
|
Transaction-related charges |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
35 |
|
|
2,501 |
|
|
2,536 |
|
|
|
Adjusted EBITDA |
$ |
29,730 |
|
$ |
5,783 |
|
$ |
5,545 |
|
$ |
203 |
|
$ |
3,934 |
|
$ |
(5,545 |
) |
$ |
39,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA for the Nine Months Ended September 30, 2014 and
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014 |
|
|
|
U.S Wireless |
|
|
U.S. Wireline |
|
Reconciling Items |
Total |
|
|
International Integrated Telephony |
Island Wireless |
Renewable Energy |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Atlantic Tele-Network, Inc.
stockholders |
|
|
|
|
|
|
$ |
35,520 |
|
|
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
|
|
8,116 |
|
|
|
Income tax expense |
|
|
|
|
|
|
|
22,460 |
|
|
|
Other expense |
|
|
|
|
|
|
|
(302 |
) |
|
|
Interest expense, net |
|
|
|
|
|
|
|
220 |
|
|
|
Operating income (loss) |
$ |
63,826 |
|
$ |
15,293 |
|
$ |
8,210 |
|
$ |
(2,511 |
) |
$ |
- |
|
$ |
(18,804 |
) |
$ |
66,014 |
|
|
|
Depreciation and amortization |
|
10,413 |
|
|
13,111 |
|
|
7,810 |
|
|
3,519 |
|
|
- |
|
|
2,899 |
|
|
37,752 |
|
|
|
Transaction-related charges |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
341 |
|
|
341 |
|
|
|
Adjusted EBITDA |
$ |
74,239 |
|
$ |
28,404 |
|
$ |
16,020 |
|
$ |
1,008 |
|
$ |
- |
|
$ |
(15,564 |
) |
$ |
104,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2015 |
|
|
|
U.S Wireless |
|
|
U.S. Wireline |
|
Reconciling Items |
Total |
|
|
International Integrated Telephony |
Island Wireless |
Renewable Energy |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Atlantic Tele-Network, Inc.
stockholders |
|
|
|
|
|
|
$ |
12,757 |
|
|
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
|
|
13,417 |
|
|
|
Income tax expense |
|
|
|
|
|
|
|
22,655 |
|
|
|
Other income |
|
|
|
|
|
|
|
(114 |
) |
|
|
Income from discontinued operations net of tax |
|
|
|
|
|
|
|
(390 |
) |
|
|
Loss on deconsolidation of subsidiary |
|
|
|
|
|
|
|
19,937 |
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
2,153 |
|
|
|
Operating income (loss) |
$ |
67,160 |
|
$ |
11,545 |
|
$ |
9,902 |
|
$ |
(3,046 |
) |
$ |
8,037 |
|
$ |
(23,183 |
) |
$ |
70,415 |
|
|
|
Depreciation and amortization |
|
13,175 |
|
|
13,249 |
|
|
6,461 |
|
|
3,699 |
|
|
3,613 |
|
|
3,616 |
|
|
43,813 |
|
|
|
Gain on disposition of long lived asset |
|
(2,823 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,823 |
) |
|
|
Transaction-related charges |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
97 |
|
|
2,755 |
|
|
2,852 |
|
|
|
Adjusted EBITDA |
$ |
77,512 |
|
$ |
24,794 |
|
$ |
16,363 |
|
$ |
653 |
|
$ |
11,747 |
|
$ |
(16,812 |
) |
$ |
114,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 |
|
|
|
ATLANTIC TELE-NETWORK, INC. |
|
|
|
Reconciliation of Non-GAAP
Measures |
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Attributable to
Atlantic Tele-Network, Inc Stockholders and
Earnings Per Share to Net |
|
|
|
|
Income Attributable to Atlantic Tele-Network, Inc
Stockholders Excluding Loss on Deconsolidation of Subsidiary
and |
|
Diluted Earnings Per Share for the Three Months
Ended September 30, 2014 and 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders |
|
|
|
$ |
16,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: None |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders excluding
loss |
|
|
|
|
|
|
on
deconsolidation of subsidiary |
|
|
|
|
|
|
$ |
16,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
stockholder |
|
|
|
|
|
|
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: None |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
stockholder
excluding loss on deconsolidation of subsidiary |
|
|
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders |
|
|
|
$ |
6,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: None |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders excluding
loss |
|
|
|
|
|
|
on
deconsolidation of subsidiary, net of tax |
|
|
|
|
|
$ |
6,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
|
stockholder |
|
|
|
|
|
|
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: None |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
stockholder
excluding loss on deconsolidation of subsidiary |
|
|
|
|
$ |
0.41 |
|
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|
|
|
|
|
|
|
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|
|
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|
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|
|
|
|
|
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|
|
ATLANTIC TELE-NETWORK, INC. |
|
|
|
Reconciliation of Non-GAAP
Measures |
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income Attributable to
Atlantic Tele-Network, Inc Stockholders and
Earnings Per Share to Net |
|
|
|
|
Income Attributable to Atlantic Tele-Network, Inc
Stockholders Excluding Loss on Deconsolidation of Subsidiary
and |
|
Diluted Earnings Per Share for the Nine Months
Ended September 30, 2014 and 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders |
|
|
|
$ |
35,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: None |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders excluding
loss |
|
|
|
|
|
|
on
deconsolidation of subsidiary |
|
|
|
|
|
|
$ |
35,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
stockholder |
|
|
|
|
|
|
|
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: None |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
stockholder
excluding loss on deconsolidation of subsidiary |
|
|
|
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders |
|
|
|
$ |
12,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
deconsolidation of subsidiary |
|
|
|
|
|
|
19,937 |
|
|
|
|
Income tax
expense adjustment |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Atlantic Tele-Network, Inc. stockholders excluding
loss |
|
|
|
|
|
|
on
deconsolidation of subsidiary, net of tax |
|
|
|
|
|
$ |
32,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
|
stockholder |
|
|
|
|
|
|
|
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment
for loss on deconsolidation |
|
|
|
|
|
|
1.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
income per weighted average share attributable to Atlantic
Tele-Network, Inc. |
|
|
|
|
|
stockholder
excluding loss on deconsolidation of subsidiary |
|
|
|
|
$ |
2.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
CONTACT:
Michael T. Prior
Chief Executive Officer
978-619-1300
Justin D. Benincasa
Chief Financial Officer
978-619-1300
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