"First-to-Fiber” and "Glass & SteelTM” Strategies Yield Year-Over-Year Increases in High-Speed Data Subscriber and Network Reach Metrics
- Total high-speed broadband subscribers increased 6% year-over-year
- Broadband homes passed by high-speed data services expanded 20% year-over-year
- Capital expenditures were $85.7 million (net of $71.8 million reimbursements) for the first nine months of 2024, reduced from $126.6 million (net of $14.3 million reimbursements) for the first nine months of 2023
- International Telecom segment revenues were essentially flat supported by growth in consumer and business fixed revenues and business mobility revenues
- US Telecom segment revenues were down 13% due primarily to the anticipated conclusion of two government subsidy programs and the anticipated reduction in construction revenues
- Third quarter net loss increased to $32.7 million, or $2.26 per diluted share inclusive of a $35.3 million non-cash goodwill impairment charge
- Operating loss increased to $38.4 million, including the impairment charge
- Adjusted EBITDA1 decreased 5% to $45.7 million
- Year-to-date net cash from operations increased 9% year-over-year to $97.4 million
The Company's expectations for full-year 2024 outlook are as follows:
- Revenue is now expected to be in the range of $720 million to $730 million, excluding construction revenue
- Adjusted EBITDA2 is now expected to be in the range of $182 million to $188 million
- Capital Expenditures are still expected to be in the range of $100 million to $110 million, net of reimbursements
- Net Debt Ratio3 is now expected to be in the range of 2.3x to 2.6x exiting 2024
Wednesday October 30, 2024, at 10:00 a.m. ET; Webcast Link: https://edge.media-server.com/mmc/p/i66c89ki
BEVERLY, Mass., Oct. 29, 2024 (GLOBE NEWSWIRE) -- 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 September 30, 2024.
Remarks by Brad Martin, ATN Chief Executive Officer
"We reported strong free cash flow from operations in the third quarter, driven by effective cost and net working capital management. Our performance continues to reflect a tale of two segments, with revenues impacted primarily by underperformance in our US Telecom segment related to the conclusion of certain government subsidy programs, slower consumer growth, and delays in enterprise sales and delivery. Based on these dynamics, and compression in market multiples, we recorded a non-cash $35 million goodwill impairment charge during the third quarter.
"In the International Telecom segment, solid fixed revenue gains and business mobility revenue growth offset softness in consumer mobility related to competitive pressures, and we delivered Adjusted EBITDA growth. Additionally, we increased our international post-paid mobile subscriber bases both sequentially and year-over-year.
"To reflect our expectations for near-term operating performance, we are lowering our revenue and Adjusted EBITDA guidance ranges for fiscal 2024 and increasing our expected leverage multiple exiting the year. We are taking strategic actions intended to align our cost structure with current revenue levels, while focusing on margin improvement and cash flow generation. These actions include refocusing efforts on growing our business and carrier customer revenues in the US, strengthening sales execution teams, and maximizing value from deployed assets.
"Longer term, we remain committed to leveraging the value and longevity of our upgraded network while diligently operating the business in an effort to further expand cash flows and position ATN to deliver increased value for shareholders.”
Third Quarter 2024 Financial Results
Consolidated revenues were $178.5 million, down 7% versus $191.0 million in the year-ago quarter. This primarily reflects the overall revenue decline in the US Telecom segment due in part to the anticipated impact of the end of the Emergency Connectivity Fund (ECF) and Affordable Care Program (ACP), and a reduction in construction revenues for the quarter.
Operating loss was $38.4 million in the third quarter versus operating income of $6.8 million in the year-ago quarter. The decrease in operating income was primarily due to a $35.3 million non-cash goodwill impairment charge on certain US Telecom assets, $3.8 million of transaction-related charges, and $2.3 million of restructuring and reorganization expenses.
Net loss attributable to ATN stockholders in the third quarter of 2024 was $32.7 million, or a loss of $2.26 per share compared with a net loss attributable to ATN stockholders of $3.6 million, or $0.31 loss per share, in the year-ago quarter. The year-over-year change was the result of the above-mentioned factors that increased the operating loss combined with an increase in interest expense. In all periods, the loss per share calculation includes the impact of preferred dividends that are not included in the net loss calculation.
Adjusted EBITDA1 was $45.7 million in the third quarter of 2024, a decrease from $47.8 million in the year-ago quarter primarily due to lower US Telecom revenues.
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 September 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: | $ | 94,281 | $ | 93,878 | $ | 84,170 | $ | 97,158 | $ | - | $ | - | $ | 178,451 | $ | 191,036 | ||||||||
| Mobility | 26,809 | 27,791 | 706 | 946 | - | - | 27,515 | 28,737 | ||||||||||||||||
| Fixed | 61,759 | 59,983 | 51,015 | 58,342 | - | - | 112,774 | 118,325 | ||||||||||||||||
| Carrier Services | 3,272 | 3,441 | 29,430 | 32,319 | - | - | 32,702 | 35,760 | ||||||||||||||||
| Construction | - | - | 203 | 2,038 | - | - | 203 | 2,038 | ||||||||||||||||
| All other | 2,441 | 2,663 | 2,816 | 3,513 | - | - | 5,257 | 6,176 | ||||||||||||||||
| Operating Income (Loss) | $ | 12,853 | $ | 12,800 | $ | (44,333 | ) | $ | 3,018 | $ | (6,878 | ) | $ | (8,981 | ) | $ | (38,358 | ) | $ | 6,837 | ||||
| EBITDA** | $ | 31,518 | $ | 27,394 | $ | (23,912 | ) | $ | 25,299 | $ | (6,674 | ) | $ | (8,363 | ) | $ | 932 | $ | 44,330 | |||||
| Adjusted EBITDA1 | $ | 32,248 | $ | 27,502 | $ | 17,692 | $ | 26,860 | $ | (4,270 | ) | $ | (6,516 | ) | $ | 45,670 | $ | 47,846 | ||||||
| Capital Expenditures*** | $ | 10,489 |
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