• Continued growth in domestic and international telecom drives improved underlying operating results
  • Telecom businesses well positioned to continue to deliver strong financial performance in 2020      

BEVERLY, Mass., Feb. 19, 2020 (GLOBE NEWSWIRE) -- ATN International, Inc. (Nasdaq: ATNI) today reported results for the fourth quarter and full year ended December 31, 2019.

Business Review and Outlook

“Fourth quarter operating results in our telecom segments improved considerably in most respects from last year’s levels,” said Michael Prior, ATN’s Chief Executive Officer. “Consolidated telecom revenues in the fourth quarter increased at a high single-digit rate, driving higher growth in Adjusted EBITDA1.

“Positive fourth quarter comparisons in our International Telecom segment were broad-based, reflective of growth in our broadband services across our markets and the continued recovery of our US Virgin Islands operations, following the 2017 hurricanes. Our scale and investments in expanded fiber coverage and capacity, combined with the improved economic conditions in several of our markets, have put us in a strong position to deliver the data services that are in high demand.

“US Telecom operations generated double-digit revenue growth for the quarter due to increased wholesale wireless revenue as part of the FirstNet transaction and our work on the Connect America Fund Phase II (CAF II). This revenue boost and related operating income expansion more than offset additional costs related to our early-stage domestic telecom ventures.

“Fourth quarter net income included $5.8 million of charges tied to a revision to the carrying value of our solar operations in India given changing market conditions and delays in execution on certain pipeline assets.  We are pleased with recent customer acquisition activities in this market and continue to evaluate potential partnering alternatives to execute on the solar energy platform that we have built in India.

“Looking ahead, we believe we have entered 2020 with our core telecom businesses well positioned, and we expect them to continue to increase segment revenue and Adjusted EBITDA1 for the year. Our International Telecom segment has a broadening revenue base, with the potential to participate in macro-economic growth in multiple markets while at the same time increasing share and driving operating efficiencies.  Our US Telecom segment has made great strides towards strengthening its wholesale revenue pipeline, with potential upside coming from our ability to expand our enterprise and retail offerings. Also, while still early in the development phase, we believe our Geoverse subsidiary is well positioned to play a major role in the promising “private LTE” market. Geoverse has developed a strong platform and technical solution and is pursuing growth both through turnkey in-building deployments and working with strategic partners who are interested in utilizing Geoverse’s network solution.”

Fourth Quarter and Full Year 2019 Financial Results

Fourth quarter 2019 consolidated revenues of $112.1 million were up 4% compared to last year’s reported revenues of $107.8 million.  An operating loss for the fourth quarter of 2019 of $1.7 million included $5.8 million of goodwill impairment charges and losses on disposed assets.  This compares with the prior year operating income of $10.3 million, which included the $10.9 million gain mostly from the sale of the Company’s U.S. solar portfolio.  Adjusted EBITDA1 was $28.5 million, an increase of 22% compared to $23.4 million in the prior year period and up 39% adjusting for the sale of U.S. solar assets included in Q4 2018.  Net loss attributable to ATN’s stockholders for the fourth quarter was $9.8 million, or $0.61 per share, and included approximately $3.0 million of foreign currency losses from several of our markets.  The prior year period’s net income was $1.1 million, or $0.07 per diluted share.

Revenues for the full year 2019 were $438.7 million, 3% below the $451.2 million reported for the full year 2018.  Operating income for the full year 2019 was $13.4 million including $6.1 million of goodwill impairment charges and losses on disposed assets.  In 2018, operating income was $61.0 million, which included $26.4 million in net gains on the sales of certain wholesale wireless assets in the U.S. and the Company’s U.S. solar portfolio.  Adjusted EBITDA1 for the full year 2019 was $108.9 million, a decrease of 12% from the prior year.  Net loss attributable to ATN stockholders for the full year 2019 was $10.8 million, or $0.68 per share, compared with the prior year’s net income of $19.8 million or $1.24 per diluted share.
______________________________________________________________________
1 See Table 5 for reconciliation of Net Income to Adjusted EBITDA.

Fourth Quarter 2019 Operating Highlights

The Company has three reportable segments: (i) US Telecom; (ii) International Telecom; and (iii) Renewable Energy. 

Segment Results (in Thousands)
 Three Months Ended December 31, 2019
 US TelecomInternational
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue$27,849$83,079$1,158 $- $112,086 
Operating Income (Loss)$2,137$11,119$(6,492)$(8,503)$(1,739)
Adjusted EBITDA1$8,349$26,598$146 $(6,625)$28,468 
 Year Ended December 31, 2019  
Capital Expenditures$17,490$42,029$6,448 $6,758 $72,725 
 Three Months Ended December 31, 2018  
 US TelecomInternational
Telecom
Renewable
Energy
Corporate and
Other
Total
Revenue$24,888$78,033$4,885 $- $107,806 
Operating Income (Loss)$973$7,572$9,753 $(7,980)$10,318 
Adjusted EBITDA1$6,467$20,645$2,948 $(6,704)$23,356 
 Year Ended December 31, 2018  
Capital Expenditures$13,389$160,013$4,515 $8,004 $185,921 
              

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.  International Telecom revenues increased 6% year-on-year mainly due to a strong increase in broadband revenues in most of our markets, including the U.S. Virgin Islands, where the market and our operations continue to recover and grow following the 2017 hurricanes.  International Telecom operating income increased 47% to $11.1 million from the prior year’s quarter and Adjusted EBITDA1 increased 29% to $26.6 million from the prior year’s quarter as a result of the higher broadband revenues in multiple markets, the post-storm recovery in the U.S. Virgin Islands and improved operating margins in multiple markets.

US Telecom

US Telecom revenues consist mainly of wireless revenues from our voice and data wholesale wireless operations and our smaller retail operations in the Southwestern United States, as well as enterprise and wholesale wireline revenues.  US Telecom segment revenues increased by 12% primarily due to the CAF II federal support revenues, which began earlier in 2019 and increased wholesale revenues as part of the FirstNet transaction.  Work has commenced and we expect construction revenues under the network build portion of the FirstNet agreement to begin in mid-2020 and continue through mid-2021.  As revenues from the build will be largely offset by construction costs, we do not expect a material impact on operating income or Adjusted EBITDA1.   Operating income increased to $2.1 million from the prior year’s quarter and Adjusted EBITDA1  for this segment increased by 29% to $8.3 million. This was due to the impact of the CAF II and FirstNet revenues and was offset partially by additional operating costs related to our early stage business investments.   

Renewable Energy

Renewable Energy segment revenues are principally the result of the generation and sale of energy from our commercial solar projects in India.  In the fourth quarter of 2018, ATN completed the sale of its portfolio of solar projects in the United States. As a result, fourth quarter 2019 revenues were $1.2 million, compared to $4.9 million in the prior year quarter and Adjusted EBITDA1 amounted to $0.1 million, compared to $2.9 million in the fourth quarter of 2018.  We finished 2019 with 52 MWs of revenue generating solar facilities compared to 49 MWs at the end of 2018 and have several activities underway to continue expanding that in 2020.  The current year’s operating loss was $6.4 million and includes the impact of $5.8 million of impaired goodwill and asset dispositions.  This compares to the prior year’s operating income of $9.8 million which included the $12.4 million gain on the sale of the U.S. solar portfolio. 

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash at December 31, 2019 was $162.4 million.  Additionally, the Company ended the fourth quarter with $0.4 million in short-term investments.  Net cash provided by operating activities was $87.9 million for the year ended 2019, compared with $115.9 million for the prior year.  The decrease in operating cash flow compared with the prior year is mostly the result of changes in net working capital activity, primarily income tax payments of $26.9 million made in 2019 and the related decrease in accrued taxes as a result of the 2018 gain on the sale of the U.S. solar portfolio.  For the year ended 2019, the Company used net cash of $118.2 million for investing and financing activities compared to $142.5 million for 2018.  In 2019, this included $72.7 million in capital expenditures, $10.9 million of dividends on common stock and $25.4 million for minority investments.  Over the past three years the company has made minority investments totaling approximately $32.3 million in four companies, in addition to serving as the primary funding partner in three early stage controlled subsidiaries.  Management expects full year 2020 capital expenditures in International Telecom to be approximately $45.0 - $50.0 million.  In the US Telecom segment, we expect capital expenditures to be approximately $35.0 - $40.0 million, including $20.0 million on towers and backhaul to support the FirstNet contract.  In the Renewable Energy segment, we expect $2.0 - $4.0 million of project costs in 2020 related to building additional capacity.

Conference Call Information

ATN will host a conference call on Thursday, February 20, 2020 at 9:30 a.m. Eastern Time (ET) to discuss its fourth quarter and year end 2019 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, conference ID 4758768. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on February 20, 2020.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, invests in and operates communications, energy and technology businesses in the United States and internationally, including the Caribbean region and Asia-Pacific, with a particular focus on markets with a need for significant infrastructure investments and improvements. Our operating subsidiaries today primarily provide: (i) advanced 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) distributed solar electric power to corporate and government customers and (iii) wholesale communications infrastructure services such as terrestrial and submarine fiber optic transport, communications tower facilities, managed mobile networks, and in-building 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 including revenue and Adjusted EBITDA expectations and capital expenditures for 2020; the competitive environment in our key markets, demand for our services and industry trends; the impact of the CAF II federal support revenues and the FirstNet transaction; our growth opportunities; our expectations for macro-economic growth in certain of our markets; 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, capital expenditures, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power;  (2) our ability to maintain favorable roaming arrangements, receive roaming traffic and satisfy the needs and demands of our major wireless customers; (3) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (4) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables businesses; (5) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (6) economic, political and other risks and opportunities facing our operations; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to expand and obtain funding for our renewable energy business; (9) our ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (10) the occurrence of weather events and natural catastrophes; (11) increased competition;  (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) our continued access to capital and credit markets; and (14) the risk of currency fluctuation for those markets in which we operate.  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, 2018, filed with the SEC on February 28, 2019 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, filed with the SEC on November 8, 2019 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, 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, ATN has included Adjusted EBITDA in this release and in the tables included herein. 

Adjusted EBITDA is defined as net income attributable to ATN stockholders before (gain) loss on disposition of long-lived assets, restructuring charges, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, loss on damaged assets and other hurricane charges, net of insurance recovery and net income attributable to non-controlling interests. 

The Company believes that the inclusion of this non-GAAP financial measure helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. ATN’s management uses this non-GAAP measure, 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 measure included in this press release is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of this non-GAAP financial measure used in this press release to the most directly comparable GAAP financial measure are set forth in the text of, and the accompanying tables to, this press release.  While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge 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 our business.

 
Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
    
 December 31, December 31,
20192018
Assets:   
Cash and cash equivalents$161,287 $191,836
Restricted cash 1,071  1,071
Short-term investments 416  393
Other current assets 65,949  82,465
    
Total current assets 228,723  275,765
    
Property, plant and equipment, net 605,581  626,852
Operating lease right-of-use assets 68,763  -
Goodwill and other intangible assets, net 161,818  166,979
Other assets 65,110  37,708
    
Total assets$1,129,995 $1,107,304
    
Liabilities and Stockholders’ Equity:   
Current portion of long-term debt$3,750 $4,688
Taxes payable 8,517  31,795
Current portion of operating lease liabilities 11,406  -
Other current liabilities 95,996  104,167
    
Total current liabilities 119,669  140,650
    
Long-term debt, net of current portion$82,676 $86,294
Deferred income taxes 7,949  10,276
Operating lease liabilities 56,164  -
Other long-term liabilities 57,454  46,760
    
Total liabilities 323,912  283,980
    
Total ATN International, Inc.’s stockholders’ equity 676,122  695,387
Non-controlling interests 129,961  127,937
    
Total equity 806,083  823,324
    
Total liabilities and stockholders’ equity$1,129,995 $1,107,304
    



       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,
 2019  2018  2019  2018 
Revenues:       
Wireless$49,782  $45,778  $193,488  $198,824 
Wireline 61,146   57,143   239,700   230,225 
Renewable energy 1,158   4,885   5,534   22,158 
Total revenue 112,086   107,806   438,722   451,207 
        
Operating expenses:       
Termination and access fees 29,503   30,441   112,943   114,478 
Engineering and operations 19,415   18,292   77,649   73,031 
Sales, marketing and customer service 9,682   9,238   38,730   35,207 
General and administrative 25,018   26,479   100,534   104,267 
Transaction-related charges 155   2,000   244   2,642 
Restructuring charges -   752   -   515 
Depreciation and amortization 24,255   21,117   89,125   85,719 
(Gain) loss on disposition of assets 2,518   (10,916)  2,841   (26,425)
Impairment of goodwill 3,279   -   3,279   - 
Loss on damaged assets and other hurricane related charges -   85   -   750 
Total operating expenses 113,825   97,488   425,345   390,184 
        
Operating income (loss) (1,739)  10,318   13,377   61,023 
        
Other income (expense):       
Interest expense, net (764)  (823)  (2,747)  (6,162)
Other income (expense) (1,803)  1,841   (4,558)  (1,119)
Other income (expense), net (2,567)  1,018   (7,305)  (7,281)
        
Income before income taxes (4,306)  11,336   6,072   53,742 
Income tax expense 1,331   5,851   4,105   18,870 
        
Net Income (Loss) (5,637)  5,485   1,967   34,872 
        
Net income attributable to non-controlling interests, net (4,116)  (4,352)  (12,773)  (15,057)
        
Net income (loss) attributable to ATN International, Inc. stockholders$(9,753) $1,133  $(10,806) $19,815 
        
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:       
        
Basic Net Income (Loss)$(0.61) $0.07  $(0.68) $1.24 
        
        
Diluted Net Income (Loss)$(0.61) $0.07  $(0.68) $1.24 
        
Weighted average common shares outstanding:       
Basic 16,000   15,981   15,983   15,988 
Diluted 16,000   16,025   15,983   16,042 
        



 
Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
  
 Year Ended December 31,
  2019   2018 
    
Net income$1,967  $34,872 
Depreciation and amortization 89,125   85,719 
Provision for doubtful accounts 5,816   5,134 
(Gain) Loss on disposition of assets 2,841   (26,425)
Stock-based compensation 6,384   6,420 
Deferred income taxes (2,192)  (23,242)
Loss on equity investments 4,724   - 
Impairment of goodwill 3,279   - 
Unrealized loss on foreign currency 362   1,342 
Change in prepaid and accrued income taxes (14,472)  32,236 
Change in other operating assets and liabilities (10,431)  (1,262)
Other non-cash activity 500   1,071 
    
Net cash provided by operating activities 87,903   115,865 
    
Capital expenditures (72,602)  (105,769)
Hurricane rebuild capital expenditures (123)  (80,152)
Hurricane insurance proceeds -   34,606 
Purchases of strategic investments (25,362)  (3,000)
Proceeds from sale of short-term investments 8,141   6,564 
Purchase of short-term investments (8,028)  (138)
Proceeds from sale of assets -   6,900 
Sale of business, net of transferred cash of $0 and $11.5 million, respectively 6,572   48,270 
Government grants 3,140   5,400 
    
    
Net cash used in investing activities (88,262)  (87,319)
    
Dividends paid on common stock (10,880)  (10,866)
Distributions to non-controlling interests (7,161)  (18,780)
Principal repayments of term loan (4,700)  (9,795)
Payment of debt issuance costs (1,340)  - 
Stock-based compensation share repurchases (1,649)  (4,622)
Purchases of common stock - share buyback (162)  (1,576)
Repurchases of non-controlling interests (4,504)  (9,663)
Investments made by minority shareholders 488   - 
Other -   72 
    
Net cash used in financing activities (29,908)  (55,230)
    
Effect of foreign currency exchange rates on total cash, cash equivalents and restricted cash (282)  (299)
    
Net change in total cash, cash equivalents and restricted cash (30,549)  (26,983)
    
Total cash, cash equivalents and restricted cash, beginning of period 192,907   219,890 
    
Total cash, cash equivalents and restricted cash, end of period$162,358  $192,907 
    



 
     Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
      
For the three months ended December 31, 2019 is as follows:
      
 US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
      
Statement of Operations Data:     
Revenue     
Wireless$27,172 $22,610 $- $- $49,782 
Wireline 677  60,469  -  -  61,146 
Renewable Energy -  -  1,158  -  1,158 
Total Revenue$27,849 $83,079 $1,158 $- $112,086 
      
Operating Income (Loss)$2,137 $11,119 $(6,492)$(8,503)$(1,739)
Stock-based compensation$- $100 $87 $1,316 $1,503 
Non-controlling interest ( net income or (loss) )$(1,186)$(2,924)$(6)$- $(4,116)
      
Non GAAP measure:     
Adjusted EBITDA (1)$8,349 $26,598 $146 $(6,625)$28,468 
      
Balance Sheet Data (at December 31, 2019):     
Cash, cash equivalents and investments$38,240 $43,125 $25,054 $55,284  161,703 
Total current assets 54,207  91,497  27,534  55,485  228,723 
Fixed assets, net 69,184  466,523  48,421  21,453  605,581 
Total assets 222,356  647,228  76,723  183,688  1,129,995 
Total current liabilities 24,905  77,644  2,745  14,375  119,669 
Total debt -  86,426  -  -  86,426 
      
* 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 December 31, 2018 is as follows:
      
 US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
      
Statement of Operations Data:     
Revenue     
Wireless$23,110 $22,668 $- $- $45,778 
Wireline 1,778  55,365  -  -  57,143 
Renewable Energy -  -  4,885  -  4,885 
Total Revenue$24,888 $78,033 $4,885 $- $107,806 
      
Operating Income (Loss)$973 $7,572 $9,753 $(7,980)$10,318 
Stock-based compensation -  19  19  1,310  1,348 
Non-controlling interest ( net income or (loss) )$(414)$(2,544)$(1,394)$- $(4,352)
      
Non GAAP measure:     
Adjusted EBITDA (1)$6,467 $20,645 $2,948 $(6,704)$23,356 
      
      
      
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the year ended December 31, 2019 is as follows:
      
 US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
      
Statement of Operations Data:     
Revenue     
Wireless$105,434 $88,054 $- $- $193,488 
Wireline 3,214  236,486  -  -  239,700 
Renewable Energy -  -  5,534  -  5,534 
Total Revenue$108,648 $324,540 $5,534 $- $438,722 
      
Operating Income (Loss)$8,064 $46,921 $(7,243)$(34,365)$13,377 
Stock-based compensation$-  405  87  5,892 $6,384 
Non-controlling interest ( net income or (loss) )$(3,050)$(9,734)$11 $- $(12,773)
      
Non GAAP measure:     
Adjusted EBITDA (1)$31,359 $103,095 $1,838 $(27,426)$108,866 
      
Statement of Cash Flows Data:     
Capital expenditures$17,490 $42,029 $6,448 $6,758 $72,725 
      
      
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the year ended December 31, 2018 is as follows:
      
 US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
      
Statement of Operations Data:     
Revenue     
Wireless$108,878 $89,946 $- $- $198,824 
Wireline 6,602  223,623  -  -  230,225 
Renewable Energy -  -  22,158  -  22,158 
Total Revenue$115,480 $313,569 $22,158 $- $451,207 
      
Operating Income (Loss)$36,813 $45,022 $13,440 $(34,252)$61,023 
Stock-based compensation -  88  105  6,227  6,420 
Non-controlling interest ( net income or (loss) )$(3,183)$(9,753)$(2,121)$- $(15,057)
      
Non GAAP measure:     
Adjusted EBITDA (1)$44,676 $94,463 $13,638 $(28,554)$124,223 
      
Statement of Cash Flows Data:     
Capital expenditures$13,389 $160,013 $4,515 $8,004 $185,921 
      
      
      
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
at December 31, 2018
      
 US Telecom International
Telecom
Renewable
Energy
Corporate and
Other *
Total
      
      
Balance Sheet Data (at December 31, 2018):     
Cash, cash equivalents and investments$19,118 $32,390 $62,678 $78,043 $192,229 
Total current assets 36,801  75,304  80,553  83,107  275,765 
Fixed assets, net 78,102  482,770  45,599  20,381  626,852 
Total assets 172,634  622,454  130,427  181,789  1,107,304 
Total current liabilities 15,783  82,575  3,465  38,827  140,650 
Total debt -  90,970  12  -  90,982 
      
      
(1) See Table 5 for reconciliation of Net Income to Adjusted EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
      
      
      
 Quarter ended
 December 31,March 31,June 30,September 30,December 31,
 2018**2019201920192019
      
US Telecom Operational Data:     
Total Domestic Base Stations 1,045  1,046  1,048  1,048  1,043 
      
      
International Telecom Operational Data:     
Voice / Access lines* 171,100  171,200  171,200  170,200  167,300 
High Speed Data Subscribers* 120,100  123,600  124,700  127,200  129,900 
Video Subscribers 41,700  41,000  39,700  38,600  38,200 
Wireless * 300,400  293,500  290,400  284,800  283,700 
      
* Counts were adjusted for all periods presented based upon a change in methodology and process
      
** For 2018 quarter, subscribers for voice, data and video in the U.S. Virgin Islands are included as active and in the subscriber count, but many were not billed post-hurricane
      


 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, 2019 and 2018
 
Three Months Ended December 31, 2019
 US
Telecom 
 International
Telecom
 Renewable
Energy
 Corporate and
Other *
 Total 
           
Net income (loss)attributable to ATN International, Inc. stockholders        $  (9,753)
Net income attributable to non-controlling interests, net of tax          4,116 
Income tax expense          1,331 
Other (income) expense, net          1,803 
Interest expense, net          764 
Operating income$  2,137 $  11,119 $  (6,492)$  (8,503)$  (1,739)
Depreciation and amortization  6,199   15,284   1,036   1,736   24,255 
(Gain) Loss on disposition of assets  13   195   2,310   -    2,518 
 Impairment of intangible assets  -    -    3,279   -    3,279 
Transaction-related charges  -    -    13   142   155 
Adjusted EBITDA $  8,349 $  26,598 $  146 $  (6,625)$  28,468 
           
           
           
  Three Months Ended December 31, 2018
 US
Telecom 
 International
Telecom 
 Renewable
Energy
 Corporate and
Other *
 Total 
            
Net Income (loss) attributable to ATN International, Inc. stockholders        $  1,133 
Net income attributable to non-controlling interests, net of tax          4,352 
Income tax expense          5,851 
Other expense, net          (1,841)
Interest expense, net          823 
Operating income$  973 $  7,572 $  9,753 $  (7,980)$  10,318 
Depreciation and amortization  5,602   12,983   1,097   1,435   21,117 
Restructuring charges  -    -    752   -    752 
(Gain) loss on disposition of assets  (134)  5   (10,787)  -    (10,916)
Loss on damaged assets and other hurricane related charges, net of insurance recovery  -    85   -    -    85 
Transaction-related charges  26   -    2,133   (159)  2,000 
Adjusted EBITDA $  6,467 $  20,645 $  2,948 $  (6,704)$  23,356 
           
           
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
           
 Reconciliation of Net Income to Adjusted EBITDA for the Year Ended December 31, 2019 and 2018
 Year Ended December 31, 2019
 US
Telecom 
 International
Telecom 
 Renewable
Energy
 Corporate and
Other *
 Total 
            
Net income (loss) attributable to ATN International, Inc. stockholders        $  (10,806)
Net income attributable to non-controlling interests, net of tax          12,773 
Income tax expense          4,105 
Other (income) expense, net          4,558 
Interest expense, net          2,747 
Operating income$  8,064 $  46,921 $  (7,243)$  (34,365)$  13,377 
Depreciation and amortization  23,119   55,993   3,305   6,708   89,125 
(Gain) Loss on disposition of long-lived assets  176   181   2,484   -    2,841 
 Impairment of intangible assets  -    -    3,279   -    3,279 
Transaction-related charges  -    -    13   231   244 
Adjusted EBITDA $  31,359 $  103,095 $  1,838 $  (27,426)$  108,866 
           
           
           
  Year Ended December 31, 2018
 US
Telecom 
 International
Telecom 
 Renewable
Energy
 Corporate and
Other *
 Total 
            
Net Income attributable to ATN International, Inc. stockholders        $  19,815 
Net income attributable to non-controlling interests, net of tax          15,057 
Income tax expense          18,870 
Other (income) expense, net          1,119 
Interest expense, net          6,162 
Operating income$  36,813 $  45,022 $  13,440 $  (34,252)$  61,023 
Depreciation and amortization  24,615   48,889   6,589   5,625   85,718 
Restructuring charges  -    (236)  751   -    515 
(Gain) Loss on disposition of long-lived assets  (17,188)  38   (9,275)  -    (26,425)
Loss on damaged assets and other hurricane related charges, net of insurance recovery  -    750   -    -    750 
Transaction-related charges  436   -    2,133   73   2,642 
Adjusted EBITDA $  44,676 $  94,463 $  13,638 $  (28,554)$  124,223 
           
           
*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments 
           


Contact978-619-1300
 Michael T. Prior
 Chairman and
 Chief Executive Officer
  
 Justin D. Benincasa
 Chief Financial Officer