ATNI ATN International Inc

ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported financial results for the quarter ended June 30, 2024.

Remarks by Brad Martin, ATN Chief Executive Officer

“We are making progress in our efforts to leverage our investments to deliver top line growth while improving operating efficiency. Our second quarter performance is driving the business toward that goal as we increased consolidated Adjusted EBITDA by 6%, delivered International Telecom segment top-line and Adjusted EBITDA growth, and benefited from our cost management efforts. Our US Telecom segment’s performance was in line with our expectations, reflecting the impact of the expiration of the ECF program, as previously signaled.″

“We continue to enhance the performance and longevity of ATN’s network and improve the quality of our revenue streams through the execution of our First-to-Fiber and Glass & Steel™ strategies. In the second quarter, we grew homes passed by high-speed broadband and had a healthy conversion of subscribers to our high-value high-speed broadband networks. In mobility, we continue to convert our mobility subscriber base to higher margin pre-paid and post-paid plans, expand data usage, and increase business subscribers.”  

“Looking ahead, we are reiterating our fiscal year 2024 outlook based on our first half performance and the progress we are making executing to our plan. As we near the end of our three-year strategy, we are focusing on maximizing the investments in our upgraded network assets while supporting further expansion at more normalized capex levels supplemented by U.S. government funded infrastructure programs. We believe that our high-speed network expansion and ongoing focus on margin improvement provides a solid foundation for driving strong, sustainable recurring revenues, durable free cash flow, and enhanced shareholder value over the long-term.”

Second Quarter 2024 Financial Results

Consolidated revenues were $183.3 million, down 2% versus $186.4 million in the year-ago quarter. This decrease primarily reflects the impact of the end of the ECF program in the US Telecom segment, which offset the increase in fixed revenues in the International Telecom segment.

Operating income was $24.3 million in the second quarter versus $2.4 million in the year-ago quarter. The increase in operating income was primarily due to a $15.9 million gain on the disposition of a non-core asset, a $4.3 million reduction in year-over-year selling, general and administrative expenses, and a $1.9 million reduction in depreciation and amortization expense.

Net income attributable to ATN stockholders in the second quarter of 2024 was $9.0 million, or income of $0.50 per diluted share compared with a net income attributable to ATN stockholders of $0.8 million, or $(0.03) loss per share, in the year-ago quarter. The increase year-over-year was the result of an increase in operating income, which more than offset the increase in interest expense. In all periods, the income or loss per share calculation includes the impact of preferred dividends that are not included in the net income (loss) calculation.

Adjusted EBITDA1 increased to $48.7 million in the second quarter of 2024 from $45.8 million in the year-ago quarter due to lower operating expenses, which more than offset the decrease in revenue.

Segment Operating Results (in Thousands)

The Company recorded financial results in three categories: (i) International Telecom; (ii) US Telecom; and (iii) Corporate and Other*.

For Three Months Ended June 30, 2024 and 2023
	2024			2023			2024				2023			2024			2023		2024			2023
	International			International			US			US			Corporate and			Corporate and			Total			Total
	Telecom			Telecom			Telecom			Telecom			Other*			Other*			ATN			ATN
Total Revenue:	$	95,357		$	91,981		$	87,924		$	94,460		$	-		$	-		$	183,281		$	186,441
Mobility		26,811			26,856			769			977			-			-			27,580			27,833
Fixed		62,215			59,673			52,491			58,103			-			-			114,706			117,776
Carrier Services		3,636			3,879			30,056			31,576			-			-			33,692			35,455
Construction		-			-			820			1,020			-			-			820			1,020
All other		2,695			1,573			3,788			2,784			-			-			6,483			4,357
Operating Income (Loss)	$	32,405		$	14,552		$	884		$	(2,394	)	$	(8,973	)	$	(9,720	)	$	24,316		$	2,438
EBITDA**	$	48,934		$	29,022		$	21,811		$	21,816		$	(8,926	)	$	(9,039	)	$	61,819		$	41,799
Adjusted EBITDA1	$	33,285		$	29,128		$	21,919		$	22,776		$	(6,534	)	$	(6,113	)	$	48,670		$	45,791
Capital Expenditures***	$	12,035		$	17,408		$	13,540		$	21,450		$	238		$	(5	)	$	25,813		$	38,853
For Six Months Ended June 30, 2024 and 2023
	2024			2023			2024				2023			2024			2023		2024			2023
	International			International			US			US			Corporate and			Corporate and			Total			Total
	Telecom			Telecom			Telecom			Telecom			Other*			Other*			ATN			ATN
Total Revenue:	$	188,416		$	182,389		$	181,660		$	189,825		$	-		$	-		$	370,076		$	372,214
Mobility		52,848			52,963			1,606			2,136			-			-			54,454			55,099
Fixed		123,536			118,563			110,376			117,004			-			-			233,912			235,567
Carrier Services		7,209			7,570			60,109			63,660			-			-			67,318			71,230
Construction		-			-			2,406			1,610			-			-			2,406			1,610
All other		4,823			3,293			7,163			5,415			-			-			11,986			8,708
Operating Income (Loss)	$	44,090		$	28,377		$	1,482		$	(6,737	)	$	(16,682	)	$	(18,566	)	$	28,890		$	3,074
EBITDA**	$	76,993		$	57,413		$	42,275		$	41,826		$	(16,557	)	$	(17,154	)	$	102,711		$	82,085
Adjusted EBITDA1	$	62,558		$	57,586		$	42,622		$	45,583		$	(12,992	)	$	(12,581	)	$	92,188		$	90,588
Capital Expenditures***	$	28,951		$	38,906		$	31,299		$	50,584		$	1,579		$	(40	)	$	61,829		$	89,450

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments.** See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure***Excludes government capital program amounts disbursed and amounts received.

ATN’s Strategic Plan and Key Performance Indicators

The Company is half-way through the final year of its three-year strategic plan initiated in 2021 to accelerate investments in its high-speed data footprint and grow high speed broadband subscribers. During this final year of the plan, the Company is reducing capital expenditures to approach more normalized spending levels and plans to augment further network expansion with previously announced and future grant funding.

Operating Metrics

	Operating Metrics
		2024		2024		2023		2023		2023		Q2 2024
		Q2		Q1		Q4		Q3		Q2		vs. Q2 2023
	High-Speed Data* Broadband Homes Passed	403,500		386,300		367,200		333,500		330,500		22	%
	High-Speed Data* Broadband Customers	141,000		137,700		135,900		132,900		129,100		9	%
	Broadband Homes Passed	803,300		789,700		768,900		746,600		746,800		8	%
	Broadband Customers	212,900		214,000		214,400		213,900		215,500		-1	%
	Fiber Route Miles	11,728		11,692		11,655		11,575		11,561		1	%
	International Mobile Subscribers
	Pre-Paid	339,000		346,400		350,700		345,500		339,600		-0	%
	Post-Paid	57,900		57,300		57,000		55,600		58,600		-1	%
	Total	396,900		403,700		407,700		401,100		398,200		-0	%
	Blended Churn	3.44	%	3.34	%	3.33	%	3.76	%	2.69	%

*High-Speed Data is defined as download speeds 100 Mbps or greater and High-Speed Data Broadband Customers as subscribers connected to our high-speed networks regardless of the speed of plan selected.

Note: Data may differ from prior periods to reflect more accurate data and/or changes in calculation methodology and process.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash as of June 30, 2024, was $73.3 million and total debt was $540.8 million, versus $67.2 million of cash, cash equivalents and restricted cash and $482.1 million of total debt at the end of the year-ago quarter.

Net cash provided by operating activities was $53.5 million for the six months ended June 30, 2024, compared with net cash provided by operating activities of $60.3 million in the prior year period.   

Capital expenditures were $61.8 million net of $46.2 million of reimbursable capital expenditures for the six months ended June 30, 2024, versus $89.5 million, net of $7.0 million of reimbursable capital expenditures in the prior year period.

Quarterly Dividends and Stock Repurchases

Quarterly dividends of $0.24 per share were paid on July 10, 2024, on all common shares outstanding to stockholders of record as of June 30, 2024.

Share repurchases made by the Company during the second quarter of 2024 totaled $9.9 million. There is $15 million remaining under the share repurchase program authorized in December 2023.

Reaffirms Full-Year 2024 Guidance and Outlook

The Company is reaffirming its guidance and outlook for the full-year ended December 31, 2024, as follows:

Revenue (excluding construction revenue)	$730 million to $750 million	Full-year 2024
Adjusted EBITDA1	$190 million to $200 million	Full-year 2024
Capital Expenditures	$100 million to $110 million	Full-year 2024
Net Debt Ratio 3	2.25x to 2.50x	Exiting 2024

Longer term, the Company continues to prioritize increasing cash flow and driving positive returns through realized efficiencies that leverage ATN’s high-quality network assets. In 2025, the Company expects internally funded capital investments to be in the range of 10% to 15% of revenues.

For the Company’s full-year 2024 outlook for Adjusted EBITDA and Net Debt Ratio, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA and the description of the calculation of Net Debt Ratio.

Conference Call Information

Call Date: Thursday, July 25, 2024Call Time: 10:00 a.m. ETWebcast Link:  https://edge.media-server.com/mmc/p/x3cd8cb6

Live Call Participant Link: https://register.vevent.com/register/BIbb2582646cf142d1bebb5428692491b1

Webcast Link InstructionsYou can listen to a live audio webcast of the conference call by visiting the “Webcast Link” above or the "Events & Presentations" section of the Company's Investor Relations website at https://ir.atni.com/events-and-presentations. A replay of the conference call will be available at the same locations beginning at approximately 1:00 pm ET on the same day. The Company also will provide an investor presentation as a supplement to the call on the “Events & Presentations” section of its Investor Relations website.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a leading provider of digital infrastructure and communications services for all. The Company operates in the United States and internationally, including the Caribbean region, with a focus on rural and remote markets with a growing demand for infrastructure investments. The Company’s operating subsidiaries today primarily provide: (i) advanced wireless and wireline connectivity to residential, business, and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and (ii) carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities. For more information, please visit www.atni.com.

Use of Non-GAAP Financial Measures and Definition of Terms

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, the Company has included EBITDA, Adjusted EBITDA, Net Debt, and Net Debt Ratio in this release and the tables included herein.

EBITDA is defined as Operating income (loss) before depreciation and amortization expense.

Adjusted EBITDA is defined as Operating income (loss) before depreciation and amortization expense, transaction-related charges, restructuring expenses, one-time impairment or special charges, non-cash stock-based compensation, and the gain (loss) on disposition of assets.

Net Debt is defined as total debt less cash and cash equivalents and restricted cash.

Net Debt Ratio is defined as Net Debt divided by the sum of the trailing four quarters Adjusted EBITDA at the measurement date.

The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. Management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release. While non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating the Company’s own operating results over different periods of time, the Company urges investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains forward-looking statements relating to, among other matters, the Company’s future financial performance, business goals and objectives, and results of operations, expectations regarding its strategic investment plan, its future revenues, operating income, operating margin, cash flows, network and operating costs, EBITDA, Adjusted EBITDA, Net Debt, Net Debt Ratio, cost management initiatives, and capital investments; demand for the Company’s services and industry trends; the timing of revenue, the Company’s liquidity; the expansion of the Company’s customer base and networks; receipt of certain government grants and management’s plans, expectations 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 the Company’s operations, including operating margins, revenues, capital expenditures, the impact of cost savings initiatives, and the retention of and future growth of the Company’s subscriber base and ARPU; (2) the Company’s reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to the Company’s network infrastructure; (3) the Company’s ability to satisfy the needs and demands of the Company’s major carrier customers; (4) the Company’s ability to realize expansion plans for its fiber markets; (5) the adequacy and expansion capabilities of the Company’s network capacity and customer service system to support the Company’s customer growth; (6) the Company’s ability to efficiently and cost-effectively upgrade the Company’s networks and information technology platforms to address rapid and significant technological changes in the telecommunications industry; (7) the Company’s continued access to capital and credit markets on terms it deems favorable; (8) government subsidy program availability and regulation of the Company’s businesses, which may impact the Company’s telecommunications licenses, the Company’s revenue and the Company’s operating costs; (9) the Company’s ability to successfully transition its US Telecom business away from wholesale mobility to other carrier and consumer-based services; (10) ongoing risk of an economic downturn, political, geopolitical and other risks and opportunities facing the Company’s operations, including those resulting from the continued inflation and other macroeconomic headwinds including increased costs and supply chain disruptions; (11) management transitions, and the loss of, or an inability to recruit skilled personnel in the Company’s various jurisdictions, including key members of management; (12) the Company’s ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (13) the occurrence of weather events and natural catastrophes and the Company’s ability to secure the appropriate level of insurance coverage for these assets; and the impact of such events on the timing of project implementation and corresponding revenue, and (14) increased competition. 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, 2023, filed with the SEC on March 15, 2024, and the other reports the Company files from time to time with the SEC. The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors that may affect such forward-looking statements, except as required by law.

Contact

Michele SatrowskyCorporate TreasurerATN International, Inc.978-619-1300

Ian RhoadesInvestor RelationsSharon Merrill Advisors, Inc.ATNI@investorrelations.com

 

	Table 1
	ATN International, Inc.
	Unaudited Condensed Consolidated Balance Sheets
	(in Thousands)
		June 30,			December 31,
		2024			2023
	Assets:
	Cash and cash equivalents	$	58,932		$	49,225
	Restricted cash		14,321			12,942
	Customer receivable		7,746			7,249
	Other current assets		214,897			211,856
	Total current assets		295,896			281,272
	Property, plant and equipment, net		1,061,322			1,080,659
	Operating lease right-of-use assets		97,738			99,335
	Customer receivable - long term		43,761			45,676
	Goodwill and other intangible assets, net		169,210			173,008
	Other assets		104,414			103,764
	Total assets	$	1,772,341		$	1,783,714
	Liabilities, redeemable non-controlling interests and stockholders’ equity:
	Current portion of long-term debt	$	16,573		$	24,290
	Current portion of customer receivable credit facility		7,659			7,110
	Taxes payable		11,994			10,876
	Current portion of lease liabilities		15,074			15,164
	Other current liabilities		217,585			235,754
	Total current liabilities		268,885			293,194
	Long-term debt, net of current portion	$	524,262		$	492,580
	Customer receivable credit facility, net of current portion		38,442			38,943
	Deferred income taxes		17,754			19,775
	Lease liabilities		75,592			76,936
	Other long-term liabilities		135,316			138,566
	Total liabilities		1,060,251			1,059,994
	Redeemable non-controlling interests		83,325			85,917
	Stockholders' equity:
	Total ATN International, Inc.’s stockholders’ equity		526,771			541,073
	Non-controlling interests		101,994			96,730
	Total stockholders' equity		628,765			637,803
	Total liabilities, redeemable non-controlling interests and stockholders’ equity	$	1,772,341		$	1,783,714

																	Table 2
	ATN International, Inc.
	Unaudited Condensed Consolidated Statements of Operations
	(in Thousands, Except per Share Data)
					Three Months Ended,								Six Months Ended,
					June 30,								June 30,
						2024				2023				2024				2023
	Revenues:
	Communications services				$	177,365			$	181,576			$	358,633			$	362,883
	Construction					820				1,020				2,406				1,610
	Other					5,096				3,845				9,037				7,721
	Total revenue					183,281				186,441				370,076				372,214
	Operating expenses (excluding depreciation and amortization unless otherwise indicated):
	Cost of services and other					76,137				77,718				156,527				156,759
	Cost of construction revenue					813				1,016				2,382				1,604
	Selling, general and administrative					57,661				61,914				118,979				123,262
	Stock-based compensation					2,781				2,739				4,690				4,517
	Transaction-related charges					-				438				19				451
	Restructuring expenses					-				370				1,190				3,257
	Depreciation					35,558				36,217				69,897				72,621
	Amortization of intangibles from acquisitions					1,945				3,144				3,924				6,391
	(Gain) loss on disposition of assets					(15,930	)			445				(16,422	)			278
	Total operating expenses					158,965				184,001				341,186				369,140
	Operating income					24,316				2,440				28,890				3,074
	Other income (expense):
	Interest expense, net					(12,196	)			(10,404	)			(23,271	)			(19,029	)
	Other income (expense)					(579	)			2,216				(406	)			2,411
	Other income (expense), net					(12,775	)			(8,188	)			(23,677	)			(16,618	)
	Income (loss) before income taxes					11,541				(5,748	)			5,213				(13,544	)
	Income tax expense (benefit)					204				(5,087	)			1,822				(5,827	)
	Net income (loss)					11,337				(661	)			3,391				(7,717	)
	Net income (loss) attributable to non-controlling interests, net					(2,334	)			1,428				(701	)			2,599
	Net income (loss) attributable to ATN International, Inc. stockholders				$	9,003			$	767			$	2,690			$	(5,118	)
	Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:
	Basic				$	0.50			$	(0.03	)		$	(0.00	)		$	(0.48	)
	Diluted				$	0.50			$	(0.03	)		$	(0.00	)		$	(0.48	)
	Weighted average common shares outstanding:
	Basic					15,254				15,719				15,346				15,726
	Diluted					15,255				15,719				15,360				15,726

Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statements
(in Thousands)
	Six Months Ended June 30,
		2024				2023
Net income (loss)	$	3,391			$	(7,717	)
Depreciation		69,897				72,621
Amortization of intangibles from acquisitions		3,924				6,391
Provision for doubtful accounts		2,855				2,463
Amortization of debt discount and debt issuance costs		1,249				1,162
(Gain) Loss on disposition of assets		(16,422	)			278
Stock-based compensation		4,690				4,517
Deferred income taxes		(2,550	)			(6,616	)
Loss on pension settlement		-				369
Gain on equity investments		(218	)			(2,501	)
Decrease in customer receivable		1,418				1,186
Change in prepaid and accrued income taxes		273				3,302
Change in other operating assets and liabilities		(14,975	)			(15,126	)
Net cash provided by operating activities		53,532				60,329
Capital expenditures		(61,830	)			(89,451	)
Government capital programs:
Amounts disbursed		(46,198	)			(6,986	)
Amounts received		48,564				593
Net proceeds from sale of assets		17,910				-
Purchases of spectrum licenses and other intangible assets		(573	)			-
Purchases and sales of investments		162				(1,055	)
Acquisition of business		-				1,314
Net cash used in investing activities		(41,965	)			(95,585	)
Dividends paid on common stock		(7,421	)			(6,633	)
Distributions to non-controlling interests		(2,116	)			(1,447	)
Finance lease payments		(915	)			(481	)
Term loan - repayments		(12,112	)			(2,335	)
Payment of debt issuance costs		(974	)			(159	)
Revolving credit facilities – borrowings		75,000				88,273
Revolving credit facilities – repayments		(40,002	)			(26,500	)
Proceeds from customer receivable credit facility		3,700				4,300
Repayment of customer receivable credit facility		(3,709	)			(3,247	)
Purchases of common stock - stock-based compensation		(1,932	)			(1,433	)
Purchases of common stock - share repurchase plan		(10,000	)			(6,828	)
Repurchases of non-controlling interests, net		-				(760	)
Net cash provided by (used in) financing activities		(481	)			42,750
Net change in total cash, cash equivalents and restricted cash		11,086				7,494
Total cash, cash equivalents and restricted cash, beginning of period		62,167				59,728
Total cash, cash equivalents and restricted cash, end of period	$	73,253			$	67,222

										Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended June 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	4,932		$	68		$	-		$	5,000
Consumer		21,879			701			-			22,580
Total	$	26,811		$	769		$	-		$	27,580
Fixed
Business	$	18,715		$	30,817		$	-		$	49,532
Consumer		43,500			21,674			-			65,174
Total	$	62,215		$	52,491		$	-		$	114,706
Carrier Services	$	3,636		$	30,056		$	-		$	33,692
Other		1,045			342			-			1,387
Total Communications Services	$	93,707		$	83,658		$	-		$	177,365
Construction	$	-		$	820		$	-		$	820
Managed services	$	1,650		$	3,446		$	-		$	5,096
Total Other	$	1,650		$	3,446		$	-		$	5,096
Total Revenue	$	95,357		$	87,924		$	-		$	183,281
Depreciation	$	16,277		$	19,234		$	47		$	35,558
Amortization of intangibles from acquisitions	$	252		$	1,693		$	-		$	1,945
Total operating expenses	$	62,952		$	87,040		$	8,973		$	158,965
Operating income (loss)	$	32,405		$	884		$	(8,973	)	$	24,316
Net (income) loss attributable to non-controlling interests	$	(5,137	)	$	2,803		$	-		$	(2,334	)
Non GAAP measures:
EBITDA (2)	$	48,934		$	21,811		$	(8,926	)	$	61,819
Adjusted EBITDA (1)	$	33,285		$	21,919		$	(6,534	)	$	48,670
Balance Sheet Data (at June 30, 2024):
Cash, cash equivalents and restricted cash	$	33,563		$	36,448		$	3,242		$	73,253
Total current assets		130,572			155,822			9,502			295,896
Fixed assets, net		475,862			579,092			6,368			1,061,322
Total assets		683,111			997,592			91,638			1,772,341
Total current liabilities		91,529			145,856			31,500			268,885
Total debt, including current portion		59,801			298,375			182,659			540,835
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
										Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended June 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	3,507		$	114		$	-		$	3,621
Consumer		23,349			863			-			24,212
Total	$	26,856		$	977		$	-		$	27,833
Fixed
Business	$	17,214		$	35,495		$	-		$	52,709
Consumer		42,459			22,608			-			65,067
Total	$	59,673		$	58,103		$	-		$	117,776
Carrier Services	$	3,879		$	31,576		$	-		$	35,455
Other		448			64			-			512
Total Communications Services	$	90,856		$	90,720		$	-		$	181,576
Construction	$	-		$	1,020		$	-		$	1,020
Managed services	$	1,125		$	2,720		$	-		$	3,845
Total Other	$	1,125		$	2,720		$	-		$	3,845
Total Revenue	$	91,981		$	94,460		$	-		$	186,441
Depreciation	$	14,106		$	21,430		$	681		$	36,217
Amortization of intangibles from acquisitions	$	364		$	2,780		$	-		$	3,144
Total operating expenses	$	77,429		$	96,854		$	9,720		$	184,003
Operating income (loss)	$	14,552		$	(2,394	)	$	(9,720	)	$	2,438
Net (income) loss attributable to non-controlling interests	$	(2,050	)	$	3,478		$	-		$	1,428
Non GAAP measures:
EBITDA (2)	$	29,022		$	21,816		$	(9,039	)	$	41,799
Adjusted EBITDA (1)	$	29,128		$	22,776		$	(6,113	)	$	45,791
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the six months ended June 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	9,740		$	141		$	-		$	9,881
Consumer		43,108			1,465			-			44,573
Total	$	52,848		$	1,606		$	-		$	54,454
Fixed
Business	$	37,247		$	65,783		$	-		$	103,030
Consumer		86,289			44,593			-			130,882
Total	$	123,536		$	110,376		$	-		$	233,912
Carrier Services	$	7,209		$	60,109		$	-		$	67,318
Other		1,863			1,086			-			2,949
Total Communications Services	$	185,456		$	173,177		$	-		$	358,633
Construction	$	-		$	2,406		$	-		$	2,406
Managed services	$	2,960		$	6,077		$	-		$	9,037
Total Other	$	2,960		$	6,077		$	-		$	9,037
Total Revenue	$	188,416		$	181,660		$	-		$	370,076
Depreciation	$	32,400		$	37,372		$	125		$	69,897
Amortization of intangibles from acquisitions	$	503		$	3,421		$	-		$	3,924
Total operating expenses	$	144,326		$	180,178		$	16,682		$	341,186
Operating income (loss)	$	44,090		$	1,482		$	(16,682	)	$	28,890
Net (income) loss attributable to non-controlling interests	$	(6,574	)	$	5,872		$	-		$	(702	)
Non GAAP measures:
EBITDA (2)	$	76,993		$	42,275		$	(16,557	)	$	102,711
Adjusted EBITDA (1)	$	62,558		$	42,622		$	(12,992	)	$	92,188
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
										Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the six months ended June 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	7,083		$	286		$	-		$	7,369
Consumer		45,880			1,850			-			47,730
Total	$	52,963		$	2,136		$	-		$	55,099
Fixed
Business	$	34,327		$	71,814		$	-		$	106,141
Consumer		84,236			45,190			-			129,426
Total	$	118,563		$	117,004		$	-		$	235,567
Carrier Services	$	7,570		$	63,660		$	-		$	71,230
Other		848			139			-			987
Total Communications Services	$	179,944		$	182,939		$	-		$	362,883
Construction	$	-		$	1,610		$	-		$	1,610
Managed services	$	2,445		$	5,276		$	-		$	7,721
Total Other	$	2,445		$	5,276		$	-		$	7,721
Total Revenue	$	182,389		$	189,825		$	-		$	372,214
Depreciation	$	28,292		$	42,917		$	1,412		$	72,621
Amortization of intangibles from acquisitions	$	744		$	5,646		$	-		$	6,390
Total operating expenses	$	154,012		$	196,562		$	18,566		$	369,140
Operating income (loss)	$	28,377		$	(6,737	)	$	(18,566	)	$	3,074
Net (income) loss attributable to non-controlling interests	$	(3,856	)	$	6,455		$	-		$	2,599
Non GAAP measures:
EBITDA (2)	$	57,413		$	41,826		$	(17,154	)	$	82,085
Adjusted EBITDA (1)	$	57,586		$	45,583		$	(12,581	)	$	90,588
Balance Sheet Data (at December 31, 2023):
Cash, cash equivalents and restricted cash	$	26,354		$	33,574		$	2,239		$	62,167
Total current assets		107,469			162,768			11,035			281,272
Fixed assets, net		481,911			593,833			4,915			1,080,659
Total assets		672,171			1,019,924			91,619			1,783,714
Total current liabilities		86,540			169,297			37,357			293,194
Total debt, including current portion		64,254			293,607			159,009			516,870
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments

										Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the three months ended June 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	32,405		$	884		$	(8,973	)	$	24,316
Depreciation expense		16,277			19,234			47			35,558
Amortization of intangibles from acquisitions		252			1,693			-			1,945
EBITDA	$	48,934		$	21,811		$	(8,926	)	$	61,819
Stock-based compensation		193			196			2,392			2,781
(Gain) Loss on disposition of assets		(15,842	)		(88	)		-			(15,930	)
ADJUSTED EBITDA	$	33,285		$	21,919		$	(6,534	)	$	48,670
For the three months ended June 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	14,552		$	(2,394	)	$	(9,720	)	$	2,438
Depreciation expense		14,106			21,430			681			36,217
Amortization of intangibles from acquisitions		364			2,780			-			3,144
EBITDA	$	29,022		$	21,816		$	(9,039	)	$	41,799
Stock-based compensation		109			9			2,621			2,739
Restructuring expenses		-			370			-			370
Transaction-related charges		-			133			305			438
(Gain) Loss on disposition of assets		(3	)		448			-			445
ADJUSTED EBITDA	$	29,128		$	22,776		$	(6,113	)	$	45,791
										Table 5 (continued)
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the six months ended June 30, 2024 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	44,090		$	1,482		$	(16,682	)	$	28,890
Depreciation expense		32,400			37,372			125			69,897
Amortization of intangibles from acquisitions		503			3,421			-			3,924
EBITDA	$	76,993		$	42,275		$	(16,557	)	$	102,711
Stock-based compensation		217			327			4,146			4,690
Restructuring expenses		1,190			-			-			1,190
Transaction-related charges		-			-			19			19
(Gain) Loss on disposition of assets		(15,842	)		20			(600	)		(16,422	)
ADJUSTED EBITDA	$	62,558		$	42,622		$	(12,992	)	$	92,188
For the six months ended June 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	28,377		$	(6,737	)	$	(18,566	)	$	3,074
Depreciation expense		28,292			42,917			1,412			72,621
Amortization of intangibles from acquisitions		744			5,646			-			6,390
EBITDA	$	57,413		$	41,826		$	(17,154	)	$	82,085
Stock-based compensation		176			86			4,255			4,517
Restructuring expenses		-			3,257			-			3,257
Transaction-related charges		-			133			318			451
(Gain) Loss on disposition of assets		(3	)		281			-			278
ADJUSTED EBITDA	$	57,586		$	45,583		$	(12,581	)	$	90,588

									Table 6
	ATN International, Inc.
	Non GAAP Measure - Net Debt Ratio
	(in Thousands)
						June 30,			December 31,
						2024			2023
	Current portion of long-term debt *					$	16,573		$	24,290
	Long-term debt, net of current portion *						524,262			492,580
	Total debt					$	540,835		$	516,870
	Less: Cash, cash equivalents and restricted cash						73,253			62,167
	Net Debt					$	467,582		$	454,703
	Adjusted EBITDA - for the four quarters ended					$	191,050		$	189,451
	Net Debt Ratio						2.45			2.40
	* Excludes Customer receivable credit facility

 

1 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.2 For the Company’s Adjusted EBITDA Guidance, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measure or reconciliations to such GAAP financial measure, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA3 Please see “Use of Non-GAAP Financial Measures” below for a full definition of Net Debt Ratio.