Fourth Quarter Financial
Highlights:
ATN (NASDAQ:ATNI) today reported results for the fourth quarter and
year ended December 31, 2016. 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. In the first quarter of 2016, the Company changed its
segment reporting structure and an unaudited recast of financial
information for the eight quarterly periods in the fiscal years
ending December 31, 2014 and 2015 can be found in the Company’s
Form 8-K filing dated April 12, 2016.
Business Review and Outlook
“Fourth quarter performance represented a solid
finish to a year in which we significantly expanded the scope of
ATN’s operations through synergistic acquisitions in telecom
services and strategic and organic initiatives in renewable
energy,” said Michael Prior, Chief Executive Officer.
“Revenue contributions in the fourth quarter from our 2016 telecom
acquisitions in Bermuda and U.S. Virgin Islands were consistent
with plan, and our first India renewable energy projects, while not
generating revenue yet, are set to deliver electricity production
in the 2017 first quarter.
“We are pleased with the market positioning of
our international telecom operations. Revenues have remained steady
during the integration of our Bermuda and USVI acquisitions,
providing a solid platform for long term development and cash
flows. Our early efforts have been focused on improving
network performance and delivering service upgrades to ensure a
superior customer experience and further strengthen our leading
market positions. We will continue to make network
investments in all our international markets in 2017, with a
significant decline in those capital expenditures expected for
2018. “U.S. wholesale wireless continued to face
the effect of lower rates, offset in part by higher retail
revenues. The net result was a modest decline in revenues and
EBITDA in the fourth quarter compared to last year. This
quarter-over-quarter trend is likely to be a factor again in 2017,
but the impact should be less pronounced, as rate reductions
stabilize and we benefit from additional operating
efficiencies.
“We were delayed on our build schedule in India
due in large part to the government imposed currency reform, but we
are moving forward with new construction and anticipate having 50MW
operational in the second quarter and potentially twice that by
year end. We are exploring financing alternatives on
completed projects, which will help determine the pace and extent
of our construction of new solar facilities in India for the second
half of the year. At present, we still see an attractive
opportunity to build more than 250MW of distributed generation
projects in India over the next two years.
“More broadly, we expect 2017 to be a year of
continued progress for ATN. We have a strong and growing base
of operating cash flows, which reached approximately $112 million,
inclusive of funding a $22 million pension obligation in lieu of
purchase consideration paid to the seller for our U.S. Virgin
Islands acquisition, for 2016, and significant remaining capacity
on our balance sheet. We have recently completed or expect to
complete some smaller strategic acquisitions and dispositions which
should improve both of those attributes. Our telecom
operations consist of a balanced and diversified portfolio of
wireless and wireline assets, many of which are in markets where we
have significant operating synergies that may be realized over
time. Our India solar projects do not rely on government
subsidies for economic returns, and while pricing per kWh is lower
than in the U.S., we expect our India operations to generate more
than $2 million in very high incremental margin revenue in the 2017
fourth quarter and to grow steadily from there,” Mr. Prior
concluded.
Fourth Quarter and Full Year 2016
Financial Results
Fourth quarter 2016 revenues were $128.5
million, a 55% increase from the $82.9 million reported for the
fourth quarter of 2015. Revenue growth resulted primarily from a
$46.5 million, or 122%, increase in our International Telecom
segment revenues mostly due to the impact of our recent Bermuda and
U.S. Virgin Islands acquisitions. Adjusted EBITDA1 for the
fourth quarter was $34.1 million, 33% above the prior year period,
primarily from the impact of the recent acquisitions and reduced
operating expenses in Guyana and in U.S. Telecom, partially offset
by a decline in Renewable Energy operating results. Operating
income for the fourth quarter, which included a $10.0 million
increase in depreciation and amortization expense primarily due to
the recent acquisitions, was $10.9 million, an increase of 33% when
compared to the prior year period.
Net income attributable to ATN’s stockholders
for the fourth quarter was $2.3 million or $0.14 per diluted share,
a decline of 44% compared with the prior year period of $4.2
million, or $0.26 per diluted share due to increased depreciation
and amortization expense, and higher net interest expense related
to the recent acquisitions and investments.
Revenues for the full year 2016 were $457.0
million, a 29% increase from the $355.4 million reported for the
same period of 2015. Adjusted EBITDA1 for
the full year 2016 was $149.0 million, up 7% from the prior
year. Operating income of $50.8 million for the full year
2016 declined from the prior year’s $78.6 million due in large part
to a $19.1 million increase in depreciation and amortization, a
$9.1 million increase in transaction-related expenses associated
with the acquisitions in 2016, and an $11.4 million impairment
charge in the year. Net income attributable to ATN’s
stockholders for the full year 2016 was $12.5 million or $0.77 per
diluted share, compared with the prior year $16.9 million, or $1.05
per diluted share.
Fourth Quarter 2016 Operating
Highlights
The Company has three reportable segments: (i)
U.S. Telecom; (ii) International Telecom; and (iii) Renewable
Energy.
U.S. Telecom
U.S. Telecom revenues consist of wireless
revenues from our voice and data wholesale roaming operations and
our smaller retail operations in the Southwestern United States and
wireline revenues from our wholesale transport and enterprise
business in the Northeastern United States. Total U.S.
Telecom segment revenues were $39.0 million in the fourth quarter
of 2016, a 1% decrease from the $39.3 million reported in the
fourth quarter of 2015. U.S. Wireless revenues declined 5% to
$30.9 million compared with $32.4 million in the prior year
quarter, due mostly to lower wholesale roaming rates, partially
offset by growth in data traffic volumes and low margin retail
wireless revenues. U.S. Wireline revenues were $7.7
million, up from $6.3 million in the prior year. The Company ended
the fourth quarter of 2016 with 1,006 domestic base stations in
service compared to 877 at the end of last year’s fourth
quarter.
U.S. Telecom Adjusted EBITDA1 of $16.4 million
in the fourth quarter of 2016 increased 5% compared to the prior
year’s $15.7 million. The increase was primarily due to a
reduction in segment operating expenses which offset lower
wholesale wireless revenues in the current year quarter.
International Telecom
International Telecom consists of a broad range
of information and communications services including wireline and
wireless data, internet, voice and video service revenues from our
operations in Bermuda and the Caribbean including the U.S. Virgin
Islands. International Telecom revenues were $84.7 million in the
fourth quarter of 2016, a 122% increase from the $38.2 million
reported in the fourth quarter of 2015. Our recent
acquisitions in Bermuda and the U.S. Virgin Islands added $47.3
million of incremental revenues during the current year quarter and
were responsible for this increase.
International Telecom Adjusted EBITDA1 of $21.1
million in the fourth quarter increased 77% from $11.9 million in
the prior year period. The increase is the result of the 2016
acquisitions and lower year over year operating expenses in Guyana.
Renewable Energy
Renewable Energy segment revenues are generated
principally by the sale of energy and solar renewable energy
credits from our 28 commercial solar projects in the United
States. For the fourth quarter of 2016, revenues from our
renewable energy business were $4.8 million, down 11% from the $5.4
million in the prior year mostly due to the expiration of certain
renewable energy credits in California. Adjusted EBITDA1 for
the Renewable Energy segment was $2.8 million in the fourth
quarter, a decrease of 27% from the prior year quarter due to the
expiration of those credits and increased operating expenses from
our new solar business in India prior to generating revenue. The
expiry of that credit revenue will lower domestic renewable energy
revenue in the coming quarters but both revenue and EBITDA for this
segment will benefit as we begin generating revenue from the
facilities under construction in India. The construction
delays in the fourth quarter of 2016 have pushed back the timeline
on the revenue and EBITDA contribution of the new solar facilities
in India
Balance Sheet and Cash Flow
Highlights
Cash and cash equivalents at December 31, 2016
were $269.7 million. In addition, the Company held $9.2
million of short-term investments and $18.6 million of restricted
cash. Net cash provided by operating activities was $111.7
million for the full year of 2016, compared with $139.2 million for
the full year of 2015. The decrease in net cash provided by
operating activities is due to lower net income in 2016, including
the impact of transaction and restructuring charges, the funding of
a $22.5 million pension obligation in lieu of purchase
consideration paid to the seller for our U.S. Virgin Islands
acquisition, and changes in deferred income taxes. Capital
expenditures were $124.3 million for the full year 2016, which
included $22.6 million spent on renewable energy projects. The
Company expects full year 2017 capital expenditures for its Telecom
businesses, including the recent Bermuda and USVI acquisitions, to
be in the range of $95 million to $115 million. Capital
expenditures in the domestic and international telecom
segments are higher than what we would expect in the ordinary
course due to concurrent network expansions and upgrades in
multiple markets. These projects include extensive fiber builds and
upgrades and market-wide mobile data network upgrades. Once
complete, we expect aggregate capital expenditures in existing
telecom markets to decline significantly in 2018. In addition,
capital expenditures for our Renewable Energy business are expected
to be in the range of $40 million to $60 million for the full year
2017, primarily related to ongoing construction of our solar
projects in India.
Conference Call Information
ATN will host a conference call on Thursday,
February 23, 2017 at 9:30 a.m. Eastern Time (ET) to discuss its
fourth quarter and year ended 2016 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 70892859. A replay of the call will be available at
ir.atni.com beginning at 1:00 p.m. (ET) on Thursday, February 23,
2017.
About ATN
ATN International, Inc. (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 various locations in the
United States and India. Through our operating subsidiaries, we (i)
provide both wireless and wireline connectivity to residential and
business customers, including a range of mobile wireless solutions,
high speed internet services, video services and local exchange
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 pace of expansion and improvement of our telecommunications
network and renewable energy operations including our level of
estimated future capital expenditures and our realization of the
benefits of these investments; the anticipated timing of the
closing of the sale of our wireline business in the Northeastern
United States; the anticipated timing of our build schedule and the
commencement of energy production of our India renewable energy
projects; 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) our ability to operate our newly acquired businesses in
Bermuda and the U.S. Virgin Islands and integrate these operations
into our existing operations; (2) the general performance of our
operations, including operating margins, revenues, and the future
growth and retention of our major customers and subscriber base and
consumer demand for solar power; (3) government regulation of our
businesses, which may impact our FCC and other telecommunications
licenses or our renewables business; (4) economic, political and
other risks facing our operations; (5) our ability to maintain
favorable roaming arrangements; (6) our ability to efficiently and
cost-effectively upgrade our networks and IT platforms to
address rapid and significant technological changes in the
telecommunications industry; (7) the loss of or an inability to
recruit skilled personnel in our various jurisdictions, including
key members of management; (8) our ability to find investment or
acquisition or disposition opportunities that fit our strategic
goals for the Company; (9) increased competition; (10) our ability
to expand our renewable energy business; (11) our reliance on a
limited number of key suppliers and vendors for timely supply of
equipment and services relating to our network infrastructure; (12)
the adequacy and expansion capabilities of our network capacity and
customer service system to support our customer growth; (13) the
occurrence of weather events and natural catastrophes; (14) our
continued access to capital and credit markets; (15) the risk of
currency fluctuation for those markets in which we operate: (16)
our ability to realize the value that we believe exists in our
businesses; and (17) our ability to receive requisite regulatory
consents and approvals and satisfy other conditions needed to
complete the pending sale of our wireline business in the
Northeastern United States. 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, 2015, filed with the SEC on February 29, 2016
and the Company’s Quarterly Report on Form 10-Q for the quarters
ended March 31, 2016, June 30, 2016, and September 30, 2016 filed
with the SEC on May 10, 2016, August 9, 2016, and November 10,
2016, respectively, and 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 press release also contains non-GAAP financial measures.
Specifically, ATN has presented an Adjusted EBITDA measure.
Adjusted EBITDA is defined as net income attributable to ATN
stockholders before income from discontinued operations, bargain
purchase gain, impairment of long-lived assets, restructuring
charges, interest, taxes, depreciation and amortization,
transaction-related charges, other income or expense, and net
income attributable to non-controlling interests. 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
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 used in
this press 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 |
ATN International, Inc. |
Unaudited Condensed Consolidated Balance
Sheets |
(in Thousands) |
|
|
|
|
|
December 31, |
|
December 31, |
2016 |
2015 |
Assets: |
|
|
|
Cash and
cash equivalents |
$ |
269,721 |
|
$ |
392,045 |
Restricted cash |
|
524 |
|
|
824 |
Short-term investments |
|
9,237 |
|
|
- |
Other
current assets |
|
88,294 |
|
|
75,623 |
|
|
|
|
Total
current assets |
|
367,776 |
|
|
468,492 |
|
|
|
|
Long-term
restricted cash |
|
18,113 |
|
|
5,477 |
Property,
plant and equipment, net |
|
647,712 |
|
|
373,503 |
Goodwill
and other intangible assets, net |
|
128,084 |
|
|
90,043 |
Other
assets |
|
36,533 |
|
|
7,489 |
|
|
|
|
Total assets |
$ |
1,198,218 |
|
$ |
945,004 |
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
Current
portion of long-term debt |
$ |
12,440 |
|
$ |
6,284 |
Taxes
payable |
|
13,531 |
|
|
9,181 |
Other
current liabilities |
|
124,202 |
|
|
68,890 |
|
|
|
|
Total
current liabilities |
|
150,173 |
|
|
84,355 |
|
|
|
|
Long-term
debt, net of current portion |
$ |
144,383 |
|
$ |
26,575 |
Deferred
income taxes |
|
47,072 |
|
|
45,406 |
Other
long-term liabilities |
|
47,871 |
|
|
26,944 |
|
|
|
|
Total
long-term liabilities |
|
239,326 |
|
|
98,925 |
|
|
|
|
Total liabilities |
|
389,499 |
|
|
183,280 |
|
|
|
|
Total ATN
International, Inc.’s stockholders’ equity |
|
676,495 |
|
|
680,299 |
Non-controlling interests |
|
132,224 |
|
|
81,425 |
|
|
|
|
Total equity |
|
808,719 |
|
|
761,724 |
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
1,198,218 |
|
$ |
945,004 |
|
|
|
|
|
|
|
|
|
|
|
|
Table 2 |
ATN International, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
(in Thousands, Except per Share
Data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenues: |
|
|
|
|
|
|
|
|
Wireless |
$ |
51,498 |
|
|
$ |
52,263 |
|
|
$ |
228,798 |
|
|
$ |
237,042 |
|
Wireline |
|
65,777 |
|
|
|
21,988 |
|
|
|
188,019 |
|
|
|
86,485 |
|
Renewable
energy |
|
|
4,672 |
|
|
|
5,409 |
|
|
|
21,608 |
|
|
|
21,040 |
|
Equipment and other |
|
6,585 |
|
|
|
3,256 |
|
|
|
18,578 |
|
|
|
10,802 |
|
Total revenue |
|
128,532 |
|
|
|
82,916 |
|
|
|
457,003 |
|
|
|
355,369 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Termination and access fees |
|
35,754 |
|
|
|
19,862 |
|
|
|
116,427 |
|
|
|
77,806 |
|
Engineering and operations |
|
16,632 |
|
|
|
10,991 |
|
|
|
52,902 |
|
|
|
39,582 |
|
Sales, marketing and customer service |
|
8,663 |
|
|
|
6,264 |
|
|
|
31,050 |
|
|
|
23,898 |
|
Equipment expense |
|
4,037 |
|
|
|
4,764 |
|
|
|
14,342 |
|
|
|
14,803 |
|
General and administrative |
|
29,344 |
|
|
|
15,447 |
|
|
|
93,293 |
|
|
|
59,436 |
|
Transaction-related charges |
|
123 |
|
|
|
4,330 |
|
|
|
16,279 |
|
|
|
7,182 |
|
Restructuring charges |
|
|
- |
|
|
|
- |
|
|
|
1,785 |
|
|
|
- |
|
Depreciation and amortization |
|
|
23,067 |
|
|
|
13,077 |
|
|
|
75,980 |
|
|
|
56,890 |
|
Impairment of long-lived assets |
|
|
- |
|
|
|
- |
|
|
|
11,425 |
|
|
|
- |
|
Bargain
purchase gain |
|
|
- |
|
|
|
- |
|
|
|
(7,304 |
) |
|
|
- |
|
(Gain) loss on disposition of long-lived assets |
|
- |
|
|
|
- |
|
|
|
27 |
|
|
|
(2,823 |
) |
Total
operating expenses |
|
117,620 |
|
|
|
74,735 |
|
|
|
406,206 |
|
|
|
276,774 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
10,912 |
|
|
|
8,181 |
|
|
|
50,797 |
|
|
|
78,595 |
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
Interest expense, net |
|
(1,377 |
) |
|
|
(439 |
) |
|
|
(4,123 |
) |
|
|
(2,592 |
) |
Loss on deconsolidation of subsidiary |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(19,937 |
) |
Other income, net |
|
(944 |
) |
|
|
21 |
|
|
|
(300 |
) |
|
|
135 |
|
Other expense, net |
|
(2,321 |
) |
|
|
(418 |
) |
|
|
(4,423 |
) |
|
|
(22,394 |
) |
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes |
|
8,591 |
|
|
|
7,763 |
|
|
|
46,374 |
|
|
|
56,201 |
|
Income tax expense |
|
4,433 |
|
|
|
1,482 |
|
|
|
21,610 |
|
|
|
24,137 |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
4,158 |
|
|
|
6,281 |
|
|
|
24,764 |
|
|
|
32,064 |
|
|
|
|
|
|
|
|
|
|
Gain on disposal of discontinued operations, net of tax |
|
- |
|
|
|
702 |
|
|
|
- |
|
|
|
1,092 |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
4,158 |
|
|
|
6,983 |
|
|
|
24,764 |
|
|
|
33,156 |
|
Net income attributable to non-controlling interests, net |
|
(1,822 |
) |
|
|
(2,799 |
) |
|
|
(12,223 |
) |
|
|
(16,216 |
) |
|
|
|
|
|
|
|
|
|
Net income attributable to ATN International, Inc.
stockholders |
$ |
2,336 |
|
|
$ |
4,184 |
|
|
$ |
12,541 |
|
|
$ |
16,940 |
|
|
|
|
|
|
|
|
|
Basic net income per weighted average share attributable to ATN
International, Inc. stockholders: |
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.14 |
|
|
$ |
0.22 |
|
|
$ |
0.78 |
|
|
$ |
0.99 |
|
Income from discontinued operations |
|
- |
|
|
|
0.04 |
|
|
|
- |
|
|
|
0.07 |
|
Net
income |
|
$ |
0.14 |
|
|
$ |
0.26 |
|
|
$ |
0.78 |
|
|
$ |
1.06 |
|
|
|
|
|
|
|
|
|
|
Diluted net income per weighted average share attributable to
ATN International, Inc. stockholders: |
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.14 |
|
|
$ |
0.22 |
|
|
$ |
0.77 |
|
|
$ |
0.98 |
|
Income from discontinued operations |
|
- |
|
|
|
0.04 |
|
|
|
- |
|
|
|
0.07 |
|
Net
income |
|
$ |
0.14 |
|
|
$ |
0.26 |
|
|
$ |
0.77 |
|
|
$ |
1.05 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
16,139 |
|
|
|
16,061 |
|
|
|
16,131 |
|
|
|
16,022 |
|
Diluted |
|
16,223 |
|
|
|
16,179 |
|
|
|
16,227 |
|
|
|
16,142 |
|
|
|
|
|
|
|
|
|
|
Table 3 |
ATN International, Inc. |
Unaudited Condensed Consolidated Cash Flow
Statement |
(in Thousands) |
|
|
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
Net income |
$ |
24,764 |
|
|
$ |
33,156 |
|
Income from
discontinued operations |
|
- |
|
|
|
(1,092 |
) |
Depreciation and
amortization |
|
75,980 |
|
|
|
56,890 |
|
Stock-based
compensation |
|
6,410 |
|
|
|
4,975 |
|
Loss on deconsolidation
of subsidiary |
|
- |
|
|
|
19,937 |
|
Bargain purchase
gain |
|
(7,304 |
) |
|
|
- |
|
(Gain) loss on
disposition of long-lived assets |
|
27 |
|
|
|
(2,823 |
) |
Impairment of
long-lived assets |
|
11,425 |
|
|
|
- |
|
Deferred income
taxes |
|
(5,136 |
) |
|
|
17,869 |
|
Pension funding
required by Innovative acquisition |
|
(22,494 |
) |
|
|
- |
|
Change in prepaid and
accrued income taxes |
|
21,497 |
|
|
|
9,478 |
|
Change in other
operating assets and liabilities |
|
2,959 |
|
|
|
(1,230 |
) |
Other non-cash
activity |
|
3,528 |
|
|
|
1,920 |
|
|
|
|
|
Net cash
provided by operating activities of continuing operations |
|
111,656 |
|
|
|
139,080 |
|
Net cash
provided by operating activities of discontinued operations |
|
- |
|
|
|
158 |
|
Net cash
provided by operating activities |
|
111,656 |
|
|
|
139,238 |
|
|
|
|
|
Capital
expenditures |
|
(124,282 |
) |
|
|
(64,753 |
) |
Acquisition of
businesses and non-controlling interests, net of acquired cash of
$12,611 and $6,571 |
|
(153,440 |
) |
|
|
(11,968 |
) |
Purchases of spectrum
licenses, including deposits |
|
(10,860 |
) |
|
|
- |
|
Net proceeds from sale
of assets |
|
1,424 |
|
|
|
5,873 |
|
Purchase of short-term
investments |
|
(7,422 |
) |
|
|
- |
|
Purchase of
securities |
|
(2,000 |
) |
|
|
- |
|
Change in restricted
cash |
|
(12,108 |
) |
|
|
38,877 |
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities |
|
(308,688 |
) |
|
|
(31,971 |
) |
|
|
|
|
Dividends paid on
common stock |
|
(20,965 |
) |
|
|
(19,070 |
) |
Proceeds from new
borrowings |
|
125,800 |
|
|
|
- |
|
Distributions to
non-controlling interests |
|
(8,632 |
) |
|
|
(16,514 |
) |
Repayments of long-term
debt |
|
(33,564 |
) |
|
|
(6,017 |
) |
Purchases of common
stock |
|
(4,114 |
) |
|
|
(1,893 |
) |
Investments made by
minority shareholders |
|
22,409 |
|
|
|
- |
|
Other |
|
(5,600 |
) |
|
|
2,056 |
|
|
|
|
|
Net cash
provided by (used in) financing activities |
|
75,334 |
|
|
|
(41,438 |
) |
|
|
|
|
Effect of foreign
currency exchange rates on cash and cash equivalents |
|
(626 |
) |
|
|
- |
|
|
|
|
|
Net change in cash and
cash equivalents |
|
(122,324 |
) |
|
|
65,829 |
|
|
|
|
|
Cash and cash
equivalents, beginning of period |
|
392,045 |
|
|
|
326,216 |
|
|
|
|
|
Cash and cash
equivalents, end of period |
$ |
269,721 |
|
|
$ |
392,045 |
|
|
|
|
|
|
|
|
|
|
Table 4 |
ATN International, Inc. |
Selected Segment Financial
Information |
(In Thousands, Except Operational
Data) |
|
|
|
|
|
|
For the three months ended December 31, 2016 is as
follows: |
|
|
|
|
|
|
|
U.S.
Telecom |
International
Telecom |
Renewable
Energy |
Reconciling Items |
Total |
|
|
|
|
|
|
Statement of
Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Wireless |
$ |
30,859 |
|
$ |
20,639 |
|
$ |
- |
|
$ |
- |
|
$ |
51,498 |
|
Wireline |
|
7,655 |
|
|
58,122 |
|
|
- |
|
|
- |
|
|
65,777 |
|
Renewable
Energy |
|
- |
|
|
- |
|
|
4,672 |
|
|
- |
|
|
4,672 |
|
Equipment
and Other |
|
510 |
|
|
5,941 |
|
|
134 |
|
|
- |
|
|
6,585 |
|
Total
Revenue |
$ |
39,024 |
|
$ |
84,702 |
|
$ |
4,806 |
|
$ |
- |
|
$ |
128,532 |
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
9,485 |
|
$ |
8,011 |
|
$ |
488 |
|
$ |
(7,072 |
) |
$ |
10,912 |
|
|
|
|
|
|
|
Non-controlling
interest ( net income or (loss) ) |
$ |
(946 |
) |
$ |
(588 |
) |
$ |
(288 |
) |
$ |
- |
|
$ |
(1,822 |
) |
|
|
|
|
|
|
Non GAAP
measure: |
|
|
|
|
|
Adjusted
EBITDA |
$ |
16,446 |
|
$ |
21,127 |
|
$ |
2,762 |
|
$ |
(6,233 |
) |
$ |
34,102 |
|
|
|
|
|
|
|
Statement of
Cash Flow Data: |
|
|
|
|
|
Capital
expenditures |
$ |
5,273 |
|
$ |
26,265 |
|
$ |
12,290 |
|
$ |
1,999 |
|
$ |
45,827 |
|
|
|
|
|
|
|
Balance Sheet
Data: |
|
|
|
|
|
Cash, cash equivalents
and investments |
$ |
22,235 |
|
$ |
97,681 |
|
$ |
27,378 |
|
$ |
131,664 |
|
$ |
278,958 |
|
Total current
assets |
|
50,983 |
|
|
143,202 |
|
|
37,439 |
|
|
136,152 |
|
|
367,776 |
|
Fixed assets, net |
|
129,274 |
|
|
372,741 |
|
|
130,268 |
|
|
15,429 |
|
|
647,712 |
|
Total assets |
|
240,006 |
|
|
597,454 |
|
|
190,253 |
|
|
170,505 |
|
|
1,198,218 |
|
Total current
liabilities |
|
23,162 |
|
|
95,570 |
|
|
12,603 |
|
|
18,838 |
|
|
150,173 |
|
Total debt |
|
- |
|
|
91,316 |
|
|
65,507 |
|
|
- |
|
|
156,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Telecom Operational Data: |
|
|
|
|
|
Wireline - Voice /
Access lines |
|
|
179,700 |
|
|
|
|
Wireline - Data
Subscribers |
|
|
97,400 |
|
|
|
|
Wireline - Video
Subscribers |
|
|
60,600 |
|
|
|
|
Wireless -
Subscribers |
|
|
310,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2015 is as
follows: |
|
|
|
|
|
|
|
U.S.
Telecom |
International
Telecom |
Renewable
Energy |
Reconciling Items |
Total |
|
|
|
|
|
|
Statement of
Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Wireless |
$ |
32,397 |
|
$ |
19,866 |
|
$ |
- |
|
$ |
- |
|
$ |
52,263 |
|
Wireline |
|
6,326 |
|
|
15,662 |
|
|
- |
|
|
- |
|
|
21,988 |
|
Renewable
Energy |
|
- |
|
|
- |
|
|
5,409 |
|
|
- |
|
|
5,409 |
|
Equipment
and Other |
|
582 |
|
|
2,674 |
|
|
- |
|
|
- |
|
|
3,256 |
|
Total
Revenue |
$ |
39,305 |
|
$ |
38,202 |
|
$ |
5,409 |
|
$ |
- |
|
$ |
82,916 |
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
10,345 |
|
$ |
6,754 |
|
$ |
(1,317 |
) |
$ |
(7,601 |
) |
$ |
8,181 |
|
|
|
|
|
|
|
Non-controlling
interest ( net income or (loss) ) |
$ |
(430 |
) |
$ |
(2,098 |
) |
$ |
(271 |
) |
$ |
- |
|
$ |
(2,799 |
) |
|
|
|
|
|
|
Non GAAP
measure: |
|
|
|
|
|
Adjusted
EBITDA |
$ |
15,710 |
|
$ |
11,927 |
|
$ |
3,800 |
|
$ |
(5,849 |
) |
$ |
25,588 |
|
|
|
|
|
|
|
Statement of
Cash Flow Data: |
|
|
|
|
|
Capital
expenditures |
$ |
9,956 |
|
$ |
7,007 |
|
$ |
13 |
|
$ |
1,746 |
|
$ |
18,722 |
|
|
|
|
|
|
|
Balance Sheet
Data: |
|
|
|
|
|
Cash, cash equivalents
and investments |
$ |
10,639 |
|
$ |
92,942 |
|
$ |
7,436 |
|
$ |
281,028 |
|
$ |
392,045 |
|
Total current
assets |
|
41,599 |
|
|
117,712 |
|
|
10,735 |
|
|
298,446 |
|
|
468,492 |
|
Fixed assets, net |
|
119,596 |
|
|
134,344 |
|
|
106,560 |
|
|
13,003 |
|
|
373,503 |
|
Total assets |
|
225,292 |
|
|
276,580 |
|
|
122,788 |
|
|
320,344 |
|
|
945,004 |
|
Total current
liabilities |
|
26,399 |
|
|
31,675 |
|
|
7,314 |
|
|
18,967 |
|
|
84,355 |
|
Total debt |
|
- |
|
|
- |
|
|
32,859 |
|
|
- |
|
|
32,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATN International, Inc. |
Selected Segment Financial
Information |
(In Thousands) |
For the year ended December 31, 2016 is as
follows: |
|
|
|
|
|
|
|
U.S.
Telecom |
International
Telecom |
Renewable
Energy |
Reconciling
Items |
Total |
|
|
|
|
|
|
Statement of
Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Wireless |
$ |
148,053 |
|
$ |
80,745 |
|
$ |
- |
|
$ |
- |
|
$ |
228,798 |
|
Wireline |
|
26,448 |
|
|
161,571 |
|
|
- |
|
|
- |
|
|
188,019 |
|
Renewable
Energy |
|
- |
|
|
- |
|
|
21,608 |
|
|
- |
|
|
21,608 |
|
Equipment
and Other |
|
2,225 |
|
|
15,960 |
|
|
393 |
|
|
- |
|
|
18,578 |
|
Total
Revenue |
$ |
176,726 |
|
$ |
258,276 |
|
$ |
22,001 |
|
$ |
- |
|
$ |
457,003 |
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
49,078 |
|
$ |
36,436 |
|
$ |
(246 |
) |
$ |
(34,471 |
) |
$ |
50,797 |
|
|
|
|
|
|
|
Non-controlling
interest ( net income or (loss) ) |
$ |
(5,833 |
) |
$ |
(4,499 |
) |
$ |
(1,890 |
) |
$ |
- |
|
$ |
(12,222 |
) |
|
|
|
|
|
|
Non GAAP
measure: |
|
|
|
|
|
Adjusted
EBITDA |
$ |
84,625 |
|
$ |
75,358 |
|
$ |
14,885 |
|
$ |
(25,880 |
) |
$ |
148,988 |
|
|
|
|
|
|
|
Statement of
Cash Flow Data: |
|
|
|
|
|
Capital
expenditures |
$ |
31,983 |
|
$ |
62,808 |
|
$ |
22,615 |
|
$ |
6,876 |
|
$ |
124,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2015 is as
follows: |
|
|
|
|
|
|
|
U.S.
Telecom |
International
Telecom |
Renewable
Energy |
Reconciling
Items |
Total |
|
|
|
|
|
|
Statement of
Operations Data: |
|
|
|
|
|
Revenue |
|
|
|
|
|
Wireless |
$ |
155,390 |
|
$ |
81,652 |
|
$ |
- |
|
$ |
- |
|
$ |
237,042 |
|
Wireline |
|
25,241 |
|
|
61,244 |
|
|
- |
|
|
- |
|
|
86,485 |
|
Renewable
Energy |
|
- |
|
|
- |
|
|
21,040 |
|
|
- |
|
|
21,040 |
|
Equipment
and Other |
|
2,355 |
|
|
8,447 |
|
|
- |
|
|
- |
|
|
10,802 |
|
Total
Revenue |
$ |
182,986 |
|
$ |
151,343 |
|
$ |
21,040 |
|
$ |
- |
|
$ |
355,369 |
|
|
|
|
|
|
|
Operating Income
(Loss) |
$ |
74,459 |
|
$ |
28,200 |
|
$ |
6,720 |
|
$ |
(30,784 |
) |
$ |
78,595 |
|
|
|
|
|
|
|
Non-controlling
interest ( net income or (loss) ) |
$ |
(5,563 |
) |
$ |
(8,908 |
) |
$ |
(1,745 |
) |
$ |
- |
|
$ |
(16,216 |
) |
|
|
|
|
|
|
Non GAAP
measure: |
|
|
|
|
|
Adjusted
EBITDA |
$ |
93,876 |
|
$ |
53,083 |
|
$ |
15,547 |
|
$ |
(22,662 |
) |
$ |
139,844 |
|
|
|
|
|
|
|
Statement of
Cash Flow Data: |
|
|
|
|
|
Capital
expenditures |
$ |
37,590 |
|
$ |
22,804 |
|
$ |
38 |
|
$ |
4,321 |
|
$ |
64,753 |
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 |
ATN International, Inc. |
Reconciliation of Non-GAAP
Measures |
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA for the Three Months Ended December 31, 2016 and
2015 |
|
|
|
|
|
|
Three Months Ended December 31, 2016 |
|
U.S. Telecom |
International Telecom |
Renewable Energy |
Reconciling Items |
Total |
|
|
|
|
|
|
Net income attributable to ATN International, Inc.
stockholders |
|
|
|
|
$ |
2,336 |
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
1,822 |
|
Income tax expense |
|
|
|
|
|
4,433 |
|
Other income, net |
|
|
|
|
|
944 |
|
Interest expense, net |
|
|
|
|
|
1,377 |
|
Operating income |
$ |
9,485 |
|
$ |
8,011 |
|
$ |
488 |
|
$ |
(7,072 |
) |
$ |
10,912 |
|
Depreciation and amortization |
|
6,961 |
|
|
13,116 |
|
|
1,345 |
|
|
1,645 |
|
|
23,067 |
|
Transaction-related charges |
|
- |
|
|
- |
|
|
929 |
|
|
(806 |
) |
|
123 |
|
Adjusted EBITDA |
$ |
16,446 |
|
$ |
21,127 |
|
$ |
2,762 |
|
$ |
(6,233 |
) |
$ |
34,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2015 |
|
U.S. Telecom |
International Telecom |
Renewable Energy |
Reconciling Items |
Total |
|
|
|
|
|
|
Net income attributable to ATN International, Inc.
stockholders |
|
|
|
|
$ |
4,184 |
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
2,799 |
|
Gain on disposal of discontinued operations, net of tax |
|
|
|
|
|
(702 |
) |
Income tax expense |
|
|
|
|
|
1,482 |
|
Other income, net |
|
|
|
|
|
(21 |
) |
Interest expense, net |
|
|
|
|
|
439 |
|
Operating income |
$ |
10,345 |
|
$ |
6,754 |
|
$ |
(1,317 |
) |
$ |
(7,601 |
) |
$ |
8,181 |
|
Depreciation and amortization |
|
5,365 |
|
|
5,173 |
|
|
1,207 |
|
|
1,332 |
|
|
13,077 |
|
Transaction-related charges |
|
- |
|
|
- |
|
|
3,910 |
|
|
420 |
|
|
4,330 |
|
Adjusted EBITDA |
$ |
15,710 |
|
$ |
11,927 |
|
$ |
3,800 |
|
$ |
(5,849 |
) |
$ |
25,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to Adjusted
EBITDA for the Year Ended December 31, 2016 and 2015 |
|
|
|
|
|
|
Year Ended December 31, 2016 |
|
U.S. Telecom |
International Telecom |
Renewable Energy |
Reconciling Items |
Total |
|
|
|
|
|
|
Net income attributable to ATN International, Inc.
stockholders |
|
|
|
|
$ |
12,541 |
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
12,223 |
|
Income tax expense |
|
|
|
|
|
21,610 |
|
Other income, net |
|
|
|
|
|
300 |
|
Interest expense, net |
|
|
|
|
|
4,123 |
|
Operating income |
$ |
49,078 |
|
$ |
36,436 |
|
$ |
(246 |
) |
$ |
(34,471 |
) |
$ |
50,797 |
|
Depreciation and amortization |
|
24,471 |
|
|
40,492 |
|
|
4,987 |
|
|
6,030 |
|
|
75,980 |
|
(Gain) loss on disposition of long-lived asset |
|
- |
|
|
27 |
|
|
- |
|
|
- |
|
|
27 |
|
Bargain purchase gain |
|
- |
|
|
(7,304 |
) |
|
- |
|
|
- |
|
|
(7,304 |
) |
Impairment of long-lived assets |
|
11,076 |
|
|
349 |
|
|
- |
|
|
- |
|
|
11,425 |
|
Restructuring charges |
|
- |
|
|
1,785 |
|
|
- |
|
|
- |
|
|
1,785 |
|
Transaction-related charges |
|
- |
|
|
3,573 |
|
|
10,144 |
|
|
2,561 |
|
|
16,278 |
|
Adjusted EBITDA |
$ |
84,625 |
|
$ |
75,358 |
|
$ |
14,885 |
|
$ |
(25,880 |
) |
$ |
148,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2015 |
|
U.S. Telecom |
International Telecom |
Renewable Energy |
Reconciling Items |
Total |
|
|
|
|
|
|
Net income attributable to ATN International, Inc.
stockholders |
|
|
|
|
$ |
16,940 |
|
Net income attributable to non-controlling interests, net of
tax |
|
|
|
|
|
16,216 |
|
(Gain) loss on disposition of long-lived asset |
|
|
|
|
|
(1,092 |
) |
Income tax expense |
|
|
|
|
|
24,137 |
|
Other income, net |
|
|
|
|
|
(135 |
) |
Loss on deconsolidation of subsidiary |
|
|
|
|
|
19,937 |
|
Interest expense, net |
|
|
|
|
|
2,592 |
|
Operating income |
$ |
74,459 |
|
$ |
28,200 |
|
$ |
6,720 |
|
$ |
(30,784 |
) |
$ |
78,595 |
|
Depreciation and amortization |
|
22,240 |
|
|
24,883 |
|
|
4,820 |
|
|
4,947 |
|
|
56,890 |
|
(Gain) loss on disposition of long-lived asset |
|
(2,823 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(2,823 |
) |
Transaction-related charges |
|
- |
|
|
- |
|
|
4,007 |
|
|
3,175 |
|
|
7,182 |
|
Adjusted EBITDA |
$ |
93,876 |
|
$ |
53,083 |
|
$ |
15,547 |
|
$ |
(22,662 |
) |
$ |
139,844 |
|
|
|
|
|
|
|
1 See Table 5 for reconciliation of Net Income (Loss) to
Adjusted EBITDA.
CONTACT:
978-619-1300
Michael T. Prior
Chief Executive Officer
Justin D. Benincasa
Chief Financial Officer
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