ATN International(ATNI) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended September 30, 2024, was $178.5 million, a decrease of 6.5$191.0 million for the same period in 2023[6]. - Net loss attributable to ATN International, Inc. stockholders for the three months ended September 30, 2024, was $32.7 million, compared to a net loss of$3.6 million for the same period in 2023[6]. - Operating expenses for the three months ended September 30, 2024, increased to $216.8 million, up from$184.2 million in the same period last year, representing a 17.7% increase[6]. - Basic net loss per share attributable to ATN International, Inc. stockholders was $(2.26) for the three months ended September 30, 2024, compared to$(0.31) for the same period in 2023[6]. - Comprehensive loss attributable to ATN International, Inc. for the nine months ended September 30, 2024, was $29,689,000, compared to$6,929,000 for the same period in 2023, indicating a worsening financial performance[8]. - The company reported a comprehensive loss of $40,863,000 for the three months ended September 30, 2024, compared to a loss of$2,369,000 for the same period in 2023[8]. - The net loss for the nine months ended September 30, 2024, was $36,059,000, compared to$11,435,000 for the same period in 2023, highlighting a deteriorating trend[10]. - The company recorded a net loss attributable to stockholders of $34.1 million for the three months ended September 30, 2024, compared to a net loss of$4.9 million for the same period in 2023[95]. - The effective tax rate for the three months ended September 30, 2024, was 23.4%, significantly higher than the 12.7% rate for the same period in 2023[89]. Assets and Liabilities - Cash and cash equivalents as of September 30, 2024, were $100.7 million, significantly up from$49.2 million as of December 31, 2023[5]. - Total current assets increased to $325.6 million as of September 30, 2024, compared to$281.3 million at the end of 2023, reflecting a growth of 15.7%[5]. - Total liabilities as of September 30, 2024, were $1.08 billion, an increase from$1.06 billion as of December 31, 2023[5]. - Total assets decreased to $1.75 billion as of September 30, 2024, from$1.78 billion at the end of 2023[5]. - Total equity as of September 30, 2024, was $628,765,000, reflecting a decrease from$645,113,000 as of September 30, 2023[9]. - Total current liabilities as of September 30, 2024, were $268,430 thousand, compared to$293,194 thousand as of December 31, 2023, indicating a reduction of about 8.4%[108]. - Total debt, including current portion, was $568,906 thousand as of September 30, 2024, a decrease from$516,870 thousand as of December 31, 2023, reflecting an increase of approximately 10%[108]. Revenue and Expenses - Total revenue for the nine months ended September 30, 2024, was $548,527 thousand, an increase from$563,250 thousand in the same period last year, indicating a decline of approximately 2.6%[104]. - Communication services revenue decreased by $14.4 million or 2.6$533.1 million from $547.5 million year-over-year[153]. - Total operating expenses increased by$4.7 million or 0.8% to $558.0 million from$553.3 million year-over-year[153]. - Selling, general and administrative expenses decreased by $11.5 million, or 6.2$172.6 million for the nine months ended September 30, 2024, from $184.1 million for the same period in 2023[161]. - Depreciation and amortization expenses increased by$0.2 million, or 0.2%, to $107.2 million for the nine months ended September 30, 2024, from$107.0 million for the same period in 2023[162]. Goodwill and Impairments - The company reported a goodwill impairment of $35.3 million for the three months ended September 30, 2024[6]. - The company’s total goodwill balance as of September 30, 2024, was$60.7 million, with accumulated impairment of $55.9 million[84]. - A goodwill impairment of$35.3 million was recorded during the nine months ended September 30, 2024, due to a shift in business focus and operational challenges[164]. Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2024, were $85,672,000, a decrease from$126,640,000 in 2023[8]. - The company plans to invest approximately $100 million to$110 million in capital expenditures for the year ended December 31, 2024, primarily for network expansion and upgrades[172]. - The company has accrued $31.1 million in capital expenditures under the Replace and Remove Program, with expectations to be reimbursed within the next twelve months[80]. - The company received$87.2 million in reimbursements under the Replace and Remove Program, with $18.7 million classified as operating cash inflows[122]. Debt and Financing - The 2023 CoBank Credit Facility includes a$170 million revolving credit facility and a $130 million term loan facility, with all amounts drawn used to repay$139.5 million of debt from the 2019 CoBank Credit Facility[49]. - The Company had $126.8 million outstanding under the 2023 CoBank Term Loan and$69.1 million under the 2023 CoBank Revolving Loan as of September 30, 2024[51]. - The 2024 Alaska Credit Facility includes a $300 million secured term loan facility and a$90 million revolving facility, with $300 million outstanding under the term facility as of September 30, 2024[56]. - The company entered into a two-year forward starting interest rate swap agreement with a notional amount of$50.0 million, effective November 13, 2023, at a fixed SOFR rate of 4.896%[51]. - The company repaid all outstanding amounts under the 2022 Alaska Credit Facility using proceeds from the 2024 Alaska Credit Facility[188]. Operational Highlights - The company declared a dividend of $0.24 per share for the three months ended September 30, 2024, compared to$0.21 per share for the same period in 2023[6]. - The company recorded government grant revenue of $11.774 million for the three months ended September 30, 2024, compared to$11.109 million in the same period of 2023[23]. - The company has been awarded $100.1 million in construction grants to build network connectivity for eligible communities, with$4.7 million in capital expenditures disbursed during the three months ended September 30, 2024[120]. - The company provides mobile telecommunications services, fixed telecommunications services, carrier telecommunication services, and managed services to customers in various markets[113]. Market and Economic Conditions - Inflation has led to increased operating costs, potentially impacting financial condition and cash flows if costs cannot be passed on[202]. - The company is involved in ongoing litigation regarding spectrum fees and tax filings in Guyana, which may impact its financial position[112].