ATN International (ATNI) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Day, and thank you for standing by. Welcome to the ATN International Q1 twenty twenty five Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw ...

Cautionary Language Concerning Forward-Looking Statements First Quarter 2025 Earnings Call May 1, 2025 1 Safe Harbor and Non-GAAP Financial Measures Definition Q1 FY 2025 This presentation contains forward-looking statements relating to, among other matters, the Company's future financial performance, business goals and objectives, and results of operations, expectations regarding the transition of its US Telecom business, its future revenues, operating income, cash flows, network and operating costs, Adjus ...

Financial Performance - Consolidated revenues for Q1 2025 were $179.3 million, a decline of 4% from $186.8 million in Q1 2024[8] - Adjusted EBITDA increased by 2% to $44.3 million in Q1 2025, compared to $43.5 million in the same quarter last year[12] - Net loss attributable to ATN stockholders was $(8.9) million, or $(0.69) per share, compared to a net loss of $(6.3) million, or $(0.50) per share in Q1 2024[11] - Total revenue for Q1 2025 was $179.294 million, a decrease of 4.0% from $186.794 million in Q1 2024[37] - Communications services revenue was $174.031 million, down 4.0% from $181.268 million year-over-year[37] - Operating income for Q1 2025 was $2.667 million, compared to $4.574 million in Q1 2024, reflecting a decline of 41.7%[37] - Basic and diluted net income (loss) per share was $(0.69) for Q1 2025, compared to $(0.50) in Q1 2024[37] - Adjusted EBITDA for Q1 2025 was $44,339 million, compared to $43,518 million in Q1 2024, reflecting a year-over-year increase of 1.9%[45] - Total operating expenses for Q1 2025 were $176,627 million, up from $182,220 million in Q1 2024, indicating a decrease of 3.2%[41] - The company reported an operating income of $2,667 million for Q1 2025, compared to $4,574 million in Q1 2024, representing a decline of 41.8%[41] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by 55% to $35.9 million in Q1 2025, compared to $23.2 million in Q1 2024[19] - Capital expenditures for Q1 2025 were $20.8 million, down from $36.0 million in the prior year period[19] - Net cash provided by operating activities was $35.905 million for Q1 2025, an increase from $23.176 million in Q1 2024[39] - Capital expenditures for Q1 2025 were $20.832 million, down from $36.016 million in the same period last year[39] - The company reported a net change in total cash, cash equivalents, and restricted cash of $8.015 million for the quarter, ending with a total of $97.259 million[39] Assets and Liabilities - Total assets decreased to $1.707 billion as of March 31, 2025, from $1.727 billion at the end of 2024[35] - Total liabilities were $1.049 billion as of March 31, 2025, slightly down from $1.055 billion at the end of 2024[35] - Total current assets as of March 31, 2025, were $305,707 million, slightly down from $309,161 million at the end of 2024[41] - Total debt, including the current portion, was $562,384 million as of March 31, 2025, compared to $557,356 million at the end of 2024, showing a slight increase[48] - The company’s total assets were $1,707,449 million as of March 31, 2025, compared to $1,727,103 million at the end of 2024, reflecting a decrease[48] Debt Management - The net debt ratio was 2.52x as of March 31, 2025, compared to 2.54x at the end of 2024[18] - The net debt ratio improved to 2.52 as of March 31, 2025, down from 2.54 at the end of 2024, indicating better leverage management[48] Subscriber Growth - High-speed broadband homes passed increased by 11% to 427,300 in Q1 2025[16] - Total high-speed subscribers grew by 2% to 141,300 in Q1 2025[16] Future Outlook - For full year 2025, revenue excluding construction revenue is expected to align with last year's result of $725 million[23] - Adjusted EBITDA for full year 2025 is expected to be essentially flat with the prior year result of $184 million[23] Non-controlling Interests - The company reported a net income attributable to non-controlling interests of $2,459 million for Q1 2025, compared to $1,633 million in Q1 2024, indicating an increase of 50.6%[41]

ATN International (ATNI) came out with a quarterly loss of $0.57 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -470%. A quarter ago, it was expected that this provider of telecommunications services would post a loss of $0.24 per share when it actually produced earnings of $0.28, delivering a surprise of 216.67%.Over the last fou ...

First Quarter 2025 vs. First Quarter 2024 Financial Highlights Expanded high-speed broadband homes passed by 11%Grew total high-speed subscribers by 2%Revenues declined 4% to $179.3 millionOperating income decreased to $2.7 millionNet loss was $(8.9) million, or $(0.69) per shareAdjusted EBITDA1 increased 2% to $44.3 millionNet cash provided by operating activities increased 55% to $35.9 millionCapital expenditures were $20.8 million (net of $22.4 million reimbursements)Net Debt Ratio3 was 2.52x on March 31 ...

Core Viewpoint - ATN International, Inc. will release its first quarter 2025 results on April 30, 2025, and will host a conference call on May 1, 2025, to discuss these results [1] Company Overview - ATN International, Inc. is a leading provider of digital infrastructure and communications services, operating in the United States and internationally, including the Caribbean region [4] - The company focuses on rural and remote markets with a growing demand for infrastructure investments [4] - ATN's services include advanced wireless and wireline connectivity, high-speed Internet, data services, fixed and mobile wireless solutions, video and voice services, as well as carrier and enterprise communications services [4]

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. ATN International (ATNI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.ATN International is one of 611 companies in the Computer an ...

Revenue and Income - As of December 31, 2024, total revenue reached $729.1 million, with International Telecom contributing $377.5 million and US Telecom contributing $351.6 million[222]. - The company recorded $74 million in construction revenue from the FirstNet Agreement with AT&T, expecting an additional $6 million as sites are completed[205]. - Operating income for International Telecom was $75.8 million, while US Telecom reported an operating loss of $44.4 million[222]. - The company reported a net loss before income taxes of $50.9 million for the year ended December 31, 2024[222]. - Total revenue for the year ended December 31, 2024, decreased by $33.1 million, or 4.3%, to $729.1 million from $762.2 million in 2023[233]. - Communication services revenue declined by $27.3 million, or 3.7%, to $707.8 million in 2024 compared to $735.1 million in 2023[233]. - The US Telecom segment's revenue decreased by $39.9 million, or 10.2%, to $351.6 million in 2024 from $391.5 million in 2023, primarily due to a reduction in Fixed revenues[228]. - Net loss attributable to ATN International, Inc. stockholders increased by $11.9 million, or 81.8%, to $26.4 million in 2024 from $14.5 million in 2023[233]. Operating Expenses - Total operating expenses amounted to $729.9 million, with significant costs in communication services and selling, general, and administrative expenses[222]. - Operating expenses for the year ended December 31, 2024, decreased by $19.2 million, or 2.6%, to $729.9 million from $749.0 million in 2023[233]. - Selling, general and administrative expenses decreased by $13.8 million, or 5.7%, to $228.9 million, reflecting ongoing cost reduction initiatives[260]. - Depreciation and amortization expenses decreased by $3.3 million, or 2.3%, to $138.3 million, with expectations of further declines due to reduced capital expenditures[268]. Revenue Breakdown - Fixed revenue decreased by $14.4 million, or 3.0%, to $458.4 million from $472.8 million for the years ended December 31, 2024 and 2023, respectively[240]. - Mobility revenue decreased by $2.5 million, or 2.2%, to $110.0 million for the year ended December 31, 2024, down from $112.5 million in 2023[236]. - International Telecom segment's Mobility revenue decreased by $1.3 million, or 1.2%, to $107.2 million for the year ended December 31, 2024[241]. - US Telecom segment's Mobility revenue decreased by $1.2 million, or 30.0%, to $2.8 million due to the conclusion of retail mobility services under its own brand[241]. - International Telecom segment's Fixed revenue increased by $7.0 million, or 2.9%, to $246.2 million, driven by network upgrades and expansions[242]. - US Telecom segment's Fixed revenue decreased by $21.4 million, or 9.2%, to $212.2 million, primarily due to the end of the Emergency Connectivity Fund and Affordable Care Programs[242]. - Carrier Services revenue decreased by $9.6 million, or 6.7%, to $133.3 million, with a notable decrease in US Telecom segment's revenue by $8.6 million, or 6.7%[246]. - Other Communications Services revenue decreased by $0.8 million, or 11.6%, to $6.1 million, attributed to a reduction in non-recurring project-related revenue[248]. - Managed Services revenue increased by $0.9 million, or 5.5%, to $17.4 million, with growth in both International and US Telecom segments[253]. Grants and Agreements - The company recognized $178.3 million in grants under various government programs aimed at deploying broadband connectivity in underserved areas[214]. - The company was awarded $150.2 million in construction grants, with $10.8 million disbursed in capital expenditures during the year ended December 31, 2024[212]. - The company expects to complete the FirstNet network build by the end of 2025, with ongoing maintenance and transport services provided to AT&T[205][206]. - The Verizon CMS Agreement will enhance wireless services in the southwestern United States, with an initial term ending in 2030[207][209]. Impairments and Charges - Goodwill impairment charge recorded during the year ended December 31, 2024, was $35.3 million[229]. - The company recorded a goodwill impairment of $35.3 million for the quarter ended September 30, 2024, due to a shift in operations and delays in network upgrades[274][275]. - The company recorded an impairment of $35.3 million for its US Telecom segment during the quarter ended September 30, 2024, due to a shift in operations and delays in network upgrades[380]. Cash Flow and Liquidity - Cash provided by operating activities was $127.9 million in 2024, an increase of $16.3 million from $111.6 million in 2023, reflecting improvements in working capital[304]. - Cash used in investing activities decreased by $61.3 million to $103.8 million in 2024, primarily due to increased cash inflows from government reimbursements[296]. - As of December 31, 2024, total liquidity was approximately $89.2 million, with $557.4 million in debt net of unamortized deferred financing costs[293]. - As of December 31, 2024, the outstanding amount under the 2023 CoBank Term Loan was $125.9 million, with $58.6 million outstanding under the 2023 CoBank Revolving Loan and $111.4 million available[313]. - The company has $111.4 million available under the CoBank Credit Facility, $89.0 million under the Alaska Revolving Facility, and $9.2 million under the Receivables Credit Facility as of December 31, 2024[370]. Debt and Financing - The 2023 CoBank Credit Agreement imposes a maximum Total Net Leverage Ratio of 3.25 to 1.0, measured quarterly[310]. - A two-year forward starting interest rate swap agreement was entered into in October 2023, with a notional amount of $50.0 million and a fixed SOFR rate of 4.896%[314]. - The 2024 Alaska Credit Facility includes a $300 million secured term loan and a $90 million revolving facility, with $300 million outstanding under the term facility as of December 31, 2024[319]. - The 2024 Alaska Credit Facility requires maintaining a maximum Consolidated Net Total Leverage Ratio of 4.75:1.00, stepping down to 4.50:1.00 in Q3 2027[325]. - The 2024 Alaska Term Facility requires quarterly principal payments starting in Q4 2026, with amounts of $1.875 million and $3.75 million due in specified periods[324]. - The 2024 Alaska Credit Agreement includes customary covenants and events of default, with Holdings and its subsidiaries as guarantors[328]. - Future minimum principal repayments for debt facilities are projected at $8.3 million in 2025, escalating to $371.2 million in 2029[361]. Interest and Tax - Interest income increased to $1.2 million for the year ended December 31, 2024, compared to $0.5 million in 2023, attributed to higher cash balances and interest rates[276]. - Interest expense rose to $49.5 million in 2024 from $42.7 million in 2023, driven by increased borrowings under credit facilities[278]. - The effective tax rate increased to 37.5% in 2024 from 31.9% in 2023, influenced by changes in unrecognized tax positions and valuation allowances[282][283]. Legal and Contingencies - The company has accrued $13.8 million for legal contingencies as of December 31, 2024, due to probable adverse outcomes from ongoing legal proceedings[381]. Future Projections - The company plans to invest approximately $90 million to $100 million in capital expenditures for network expansion and upgrades in 2025[300]. - For 2025, capital expenditures are expected to be approximately $90 million to $100 million, primarily for network maintenance and upgrades[360]. - The company expects to incur approximately $6 million in construction costs related to the FirstNet Agreement, primarily in 2025[363]. - The company has committed to pay approximately $37.0 million in software licensing and maintenance services in 2025[368].

The Zacks Wireless National industry is set to benefit from an accelerated 5G rollout and increased fiber densification driven by healthy demand trends. However, high capital expenditures for infrastructure upgrades, supply-chain disruptions amid the prolonged Russia-Ukraine war, Middle East tensions and high customer inventory levels have dented the growth prospects to some extent.  Against this backdrop, T-Mobile US, Inc. (TMUS) , United States Cellular Corporation (USM) and ATN International, Inc. (ATNI) ...

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