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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Group 1 - Annaly Capital Management, Inc. (NLY) has seen a 6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 11.9%, higher than the industry average of 10.3% [1] - Hang Seng Bank Limited (HSNGY) has experienced a 5.8% increase in the Zacks Consensus Estimate for its current year earnings in the last 60 days and offers a dividend yield of 11.4%, significantly above the industry average of 3.8% [2] - ATN International, Inc. (ATNI) has had a remarkable 78.1% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [2]

Q4 and Year-end 2024 Earnings Call March 5, 2025 1 Safe Harbor and Non-GAAP Financial Measures Definition Q4 FY 2024 Cautionary Language Concerning Forward-Looking Statements 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 its strategic investment plan, its future revenues, operating income, operating margin, cash flows, network and operating co ...

Financial Data and Key Metrics Changes - Full-year revenue for 2024 was $729 million, representing a 4% decrease from 2023 due to the conclusion of significant programs in the US telecom segment [24] - Adjusted EBITDA for the full year 2024 decreased to $184 million, down from $189.5 million in the prior year [28] - Net income for Q4 2024 was $3.6 million, or $0.14 per share, compared to a net loss of $5.8 million or $0.46 per share in the prior year [26] - Full-year net loss for 2024 was $26.4 million or $2.10 per share, compared to a net loss of $14.5 million or $1.25 per share in 2023, primarily due to a goodwill impairment charge of $35.3 million [27] Business Line Data and Key Metrics Changes - International segment revenue for Q4 2024 was $94.8 million, essentially flat compared to the same period in the previous year, while full-year revenue increased nearly 2% to $377.5 million [29] - Domestic segment revenue for Q4 2024 was $85.8 million, down 18% year over year, and down 10% for the full year [30] - Adjusted EBITDA for the international segment increased 4.8% for the quarter and 9.7% for the full year, while domestic segment EBITDA decreased 29% for the quarter and 20% for the full year [28][30] Market Data and Key Metrics Changes - The international segment continued to grow, supported by strong demand for high-speed broadband and business solutions, with business mobility revenue increasing by 21% [12] - The US market is transitioning away from legacy technologies, with a focus on enterprise and carrier-driven fiber-based revenue streams [10] Company Strategy and Development Direction - The company is focused on long-term value creation, operational efficiency, and financial discipline, marking the end of a three-year investment cycle [7] - The strategy includes expanding fiber networks, exiting lower-margin services, and optimizing operations to enhance profitability [11][18] - The company aims to leverage government funding to accelerate fiber expansion, having secured over $370 million in grants [14][15] Management's Comments on Operating Environment and Future Outlook - Management expects short-term revenue decline due to the transition but believes it positions the company for long-term stability and higher-margin growth [12] - The focus for 2025 includes stabilizing the US telecom segment and enhancing cash flow generation while continuing to expand margins in the international segment [35] - Management remains confident in the disciplined execution of their strategy, which is expected to support long-term shareholder value creation [20][39] Other Important Information - The company ended 2024 with a net debt ratio of 2.54 times on total debt outstanding of $557.4 million [31] - Capital expenditures for 2024 totaled $110.4 million, down from $163.3 million in the previous year, reflecting a planned reduction in capital intensity [33] Q&A Session Summary Question: Capital expenditure budget for 2025 - Management indicated that the guidance aligns with expectations, with a continued reduction in CapEx anticipated [46] Question: Traction in enterprise and carrier services - Management reported a 6.5% growth in the business base internationally and a 2.7% quarter-over-quarter subscriber growth in business customers [50] Question: Impact of competition on prepaid subscribers - The decline in prepaid subscribers was primarily due to competition, particularly from a new 5G entrant in Guyana [53] Question: Specific services in carrier managed services - The company offers a range of services including lit services, dark services, and backhaul services, and has the ability to lease spectrum assets [58] Question: Visibility of the business - Management expressed confidence in the visibility of the carrier and managed solutions business, driven by increasing demand for bandwidth [97] Question: Plans for stabilizing the US domestic business - The expectation is to stabilize the US business in 2025, setting the stage for growth in 2026 and beyond [104] Question: Timeline for shutting down legacy copper - The company targets significant progress in shutting down copper infrastructure by 2030, with ongoing evaluations of market conditions [108]

Financial Performance - Fourth quarter revenues declined 9% year over year to $180.5 million; full-year revenues decreased 4% to $729.1 million, impacted by the conclusion of the Emergency Connectivity Fund (ECF) program[3] - Fourth quarter operating income increased to $8.7 million year over year; full-year operating loss was $(0.8) million, including a goodwill impairment charge of $35.3 million[8] - Fourth quarter net income was $3.6 million, or $0.14 per diluted share, compared to a net loss of $(5.8) million, or $(0.46) per share, in the year-ago quarter[10] - Full-year Adjusted EBITDA decreased 3% to $184.1 million; fourth quarter Adjusted EBITDA decreased 9% year over year to $46.2 million[11] - Total revenue for the year ended December 31, 2024, was $729,075 million, a significant increase from $762,216 million in 2023, reflecting a growth in both mobility and fixed segments[55][57] - The operating income for 2024 was reported at a loss of $795 million, compared to an operating income of $13,175 million in 2023, indicating a decline in profitability[55][57] - Adjusted EBITDA for 2024 reached $184,084 million, up from $189,451 million in 2023, showing a slight decrease in operational efficiency[62][57] - The total communications services revenue for 2024 was $707,758 million, compared to $735,082 million in 2023, reflecting a decrease of approximately 3.7%[55][57] Subscriber and Market Growth - High-speed broadband subscribers grew by 3% and homes passed increased by 16% year over year[3] - International revenue growth is anticipated in the low single digits for 2025, while domestic revenue is expected to decline temporarily due to the transition from legacy services[28] - The company completed its three-year strategic plan initiated in 2022 to accelerate investments in high-speed data footprint and grow high-speed broadband subscribers[19] Cash Flow and Debt Management - Net cash provided by operating activities increased 16% year-over-year to $129.2 million[22] - The net debt ratio was 2.54x at year-end 2024, with expectations to remain flat or slightly improve by the end of 2025[3] - The company reported a net cash provided by operating activities of $129.210 million for the year ended December 31, 2024, an increase from $111.632 million in 2023[48] - The company’s total debt, including the current portion, was $557.356 million as of December 31, 2024[50] - Total debt increased to $557,356,000 in 2024 from $516,870,000 in 2023, while net debt rose to $466,818,000 from $454,703,000[66] - The net debt ratio increased to 2.54 in 2024 compared to 2.40 in 2023, indicating a higher leverage position[66] Capital Expenditures and Investments - Capital expenditures for the full year 2024 were $110.4 million, down from $163.3 million in the prior year[23] - For 2025, ATN targets capital expenditures in the range of $90 to $100 million, net of reimbursements[30] - The company invested $10.0 million in share repurchases for the year ended December 31, 2024, with no shares repurchased in Q4 2024[24] Equity and Assets - Total assets decreased from $1,783.7 million in 2023 to $1,728.3 million in 2024[44] - Total stockholders' equity decreased from $637.8 million in 2023 to $595.5 million in 2024[44] - The current portion of long-term debt decreased from $24.3 million in 2023 to $8.2 million in 2024[44] - Total current assets as of December 31, 2023, were $281,272 million, indicating a solid liquidity position for the company[57] Future Outlook - Revenue for the full year 2025 is expected to be in line with last year, excluding construction revenue; Adjusted EBITDA is expected to be essentially flat[3] - ATN's focus for 2025 is on expanding cash flow to realize the benefits of investments and position for long-term growth and profitability[27] - ATN expects International Adjusted EBITDA to expand in 2025, driven by revenue growth and continued cost optimization[29]

Financial Performance - ATN International reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of a loss of $0.24 per share, and compared to a loss of $0.12 per share a year ago, representing an earnings surprise of 216.67% [1] - The company posted revenues of $180.55 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.80%, but down from $198.97 million in the same quarter last year [2] Market Performance - ATN International shares have declined approximately 0.9% since the beginning of the year, while the S&P 500 has seen a decline of 0.5% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.21 on revenues of $180.71 million, and for the current fiscal year, it is -$0.32 on revenues of $736.38 million [7] - The estimate revisions trend for ATN International is mixed, which could change following the recent earnings report [6] Industry Context - The Wireless National industry, to which ATN International belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]