ATN International, Inc. (NASDAQ:ATNI) Q3 2019 Earnings Conference Call October 24, 2019 9:30 AM ET Company Participants Justin Benincasa - CFO Michael Prior - President, CEO & Chairman Conference Call Participants Richard Prentiss - Raymond James & Associates Gregory Burns - Sidoti & Company Allen Klee - National Securities Corporation Hamed Khorsand - BWS Financial Inc. Operator Ladies and gentlemen, thank you for standing by, and welcome to the ATN International Third Quarter 2019 Earnings Conference Call ...

PART I—FINANCIAL INFORMATION [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Presents ATN International's unaudited condensed consolidated financial statements for Q2 and H1 2019 and 2018 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total current assets** | $250,229 | $275,765 | | **Total assets** | $1,146,976 | $1,107,304 | | **Total current liabilities** | $130,301 | $140,650 | | **Total liabilities** | $328,435 | $283,980 | | **Total equity** | $818,541 | $823,324 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $107,721 | $117,788 | $211,020 | $222,263 | | **Income from Operations** | $2,754 | $15,753 | $4,868 | $19,962 | | **Net Income (Loss) Attributable to ATNI** | $(856) | $7,216 | $(2,436) | $1,661 | | **Diluted EPS** | $(0.05) | $0.45 | $(0.15) | $0.10 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $18,522 | $46,037 | | **Net cash used in investing activities** | $(50,283) | $(58,838) | | **Net cash used in financing activities** | $(14,495) | $(26,784) | | **Net change in cash, cash equivalents, and restricted cash** | $(46,225) | $(39,763) | [Note 1. Organization and Business Operations](index=9&type=section&id=Note%201.%20ORGANIZATION%20AND%20BUSINESS%20OPERATIONS) The company operates as a holding company with three segments: US Telecom, International Telecom, and Renewable Energy - The company manages its operations through three identified segments: US Telecom, International Telecom, and Renewable Energy[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) Operating Segments and Markets (as of June 30, 2019) | Segment | Services | Markets | | :--- | :--- | :--- | | **US Telecom** | Wireless, Wireline | United States | | **International Telecom** | Wireline, Wireless, Video | Bermuda, Cayman Islands, Guyana, US Virgin Islands | | **Renewable Energy** | Solar | India | [Note 4. Leases](index=13&type=section&id=Note%204.%20LEASES) Adopted ASC 842 on January 1, 2019, recognizing a **$70.8 million** operating lease ROU asset and liabilities - Upon adopting ASC 842 on January 1, 2019, the company recognized an operating lease right-of-use (ROU) asset of **$70.8 million**, a short-term lease liability of **$8.2 million**, and a long-term lease liability of **$61.2 million**[42](index=42&type=chunk) Lease Metrics as of June 30, 2019 | Metric | Value | | :--- | :--- | | **Weighted Average Remaining Lease Term (Operating)** | 7.1 years | | **Weighted Average Remaining Lease Term (Financing)** | 11.9 years | | **Weighted Average Discount Rate (Operating)** | 5.1% | [Note 6. Impact of Hurricanes Irma and Maria](index=15&type=section&id=Note%206.%20IMPACT%20OF%20HURRICANES%20IRMA%20AND%20MARIA) Hurricanes Irma and Maria impacted US Virgin Islands operations; **$34.6 million** insurance recoveries received - The company received **$34.6 million** in insurance recoveries in February 2018 to aid recovery from the hurricanes[54](index=54&type=chunk) Hurricane Rebuild Expenditures (in millions) | Period | Expenditure | | :--- | :--- | | **Six Months Ended June 30, 2019** | $0.1 | | **Six Months Ended June 30, 2018** | $66.7 | [Note 9. Long-Term Debt](index=19&type=section&id=Note%209.%20LONG-TERM%20DEBT) Entered a new **$200 million** revolving credit facility in April 2019, with no outstanding borrowings - The company entered into a new five-year, **$200 million** revolving credit facility on April 10, 2019. As of June 30, 2019, there were no borrowings, and availability was **$192.0 million** net of letters of credit[73](index=73&type=chunk)[77](index=77&type=chunk) - The company was not in compliance with the Net Leverage Ratio covenant for its Viya Debt for the year ending December 31, 2018, and received a waiver from the lender[81](index=81&type=chunk) [Note 14. Segment Reporting](index=25&type=section&id=Note%2014.%20SEGMENT%20REPORTING) Details financial performance of US Telecom, International Telecom, and Renewable Energy segments, noting mixed results Segment Revenue (in thousands) - Six Months Ended June 30 | Segment | 2019 | 2018 | | :--- | :--- | :--- | | **US Telecom** | $47,906 | $58,783 | | **International Telecom** | $160,175 | $151,625 | | **Renewable Energy** | $2,939 | $11,855 | | **Total Revenue** | **$211,020** | **$222,263** | Segment Operating Income (Loss) (in thousands) - Six Months Ended June 30 | Segment | 2019 | 2018 | | :--- | :--- | :--- | | **US Telecom** | $(2,006) | $13,065 | | **International Telecom** | $24,935 | $21,211 | | **Renewable Energy** | $(16) | $3,863 | | **Corporate and Other** | $(18,045) | $(18,177) | | **Total Operating Income** | **$4,868** | **$19,962** | [Note 15. Commitments and Contingencies](index=27&type=section&id=Note%2015.%20COMMITMENTS%20AND%20CONTINGENCIES) Faces significant legal challenges in Guyana, including GTT's exclusive license and **$44.1 million** in disputed tax assessments - The Government of Guyana passed legislation in 2016 to introduce more competition, which could affect GTT's exclusive license. Discussions with the government are ongoing[112](index=112&type=chunk)[113](index=113&type=chunk) - GTT is involved in several legal claims with the Guyana Revenue Authority regarding tax filings dating back to 1991, with disputed assessments totaling **$44.1 million**. The company has accrued **$5.0 million** for these matters as of June 30, 2019[118](index=118&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial performance for Q2 and H1 2019 vs. 2018, focusing on segment performance, liquidity, and capital [Results of Operations (Three Months Ended June 30, 2019 vs. 2018)](index=33&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20June%2030%2C%202019%20vs.%202018)) Q2 2019 total revenue decreased **8.5%** to **$107.7 million**, with operating income down **82.5%** Consolidated Results of Operations - Q2 2019 vs Q2 2018 (in thousands) | Metric | Q2 2019 | Q2 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $107,721 | $117,788 | $(10,067) | (8.5)% | | **Income from Operations** | $2,754 | $15,753 | $(12,999) | (82.5)% | | **Net Income (Loss) Attributable to ATNI** | $(856) | $7,216 | $(8,072) | (111.9)% | - US Telecom revenue decreased by **12.9%** to **$26.4 million**, primarily due to a **$2.9 million** decline in wireless revenue from reduced wholesale traffic and the sale of 100 cell sites in July 2018[144](index=144&type=chunk)[145](index=145&type=chunk) - Renewable Energy revenue decreased by **76.7%** to **$1.4 million**, primarily as a result of the November 2018 sale of the US Solar Operations[151](index=151&type=chunk) [Results of Operations (Six Months Ended June 30, 2019 vs. 2018)](index=47&type=section&id=Results%20of%20Operations%20(Six%20Months%20Ended%20June%2030%2C%202019%20vs.%202018)) H1 2019 total revenue decreased **5.1%** to **$211.0 million**, with operating income down **75.6%** Consolidated Results of Operations - H1 2019 vs H1 2018 (in thousands) | Metric | H1 2019 | H1 2018 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $211,020 | $222,263 | $(11,243) | (5.1)% | | **Income from Operations** | $4,868 | $19,962 | $(15,094) | (75.6)% | | **Net Income (Loss) Attributable to ATNI** | $(2,436) | $1,661 | $(4,097) | (246.7)% | - US Telecom revenue decreased by **18.5%** to **$47.9 million**, leading to an operating loss of **$2.0 million** compared to an income of **$13.1 million** in H1 2018[213](index=213&type=chunk)[217](index=217&type=chunk) - International Telecom revenue increased by **5.7%** to **$160.2 million**, and operating income grew **17.9%** to **$25.0 million**, largely due to increased broadband revenues[218](index=218&type=chunk)[220](index=220&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2019, cash was **$146.7 million**, with operating cash flow at **$18.5 million** and capital expenditures at **$35.4 million** - Cash and cash equivalents decreased by **$46.2 million** during the first six months of 2019 to **$146.7 million**, primarily due to capital expenditures (**$35.4 million**), investments (**$10.0 million**), and dividends (**$5.4 million**), partially offset by cash from operations (**$18.5 million**)[270](index=270&type=chunk)[271](index=271&type=chunk) Capital Expenditures by Segment (in thousands) - Six Months Ended June 30 | Segment | 2019 | 2018 | | :--- | :--- | :--- | | **US Telecom** | $6,368 | $7,266 | | **International Telecom** | $23,692 | $95,520 | | **Renewable Energy** | $817 | $1,388 | | **Corporate and Other** | $4,519 | $3,074 | | **Total** | **$35,396** | **$107,248** | - The company expects 2019 capital expenditures for the International Telecom segment to be approximately **$50.0 million** to **$55.0 million**[266](index=266&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are foreign currency translation and interest rate sensitivity on **$21.3 million** of variable rate debt - The company is exposed to foreign currency risk from its operations in India (Indian Rupee) and Guyana (Guyana Dollar)[301](index=301&type=chunk) - As of June 30, 2019, the company had **$21.3 million** of variable rate debt outstanding, creating exposure to interest rate fluctuations[304](index=304&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2019, with no material changes in Q2 2019 - Based on an evaluation as of June 30, 2019, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[305](index=305&type=chunk) - No changes in internal control over financial reporting occurred during Q2 2019 that have materially affected, or are reasonably likely to materially affect, internal controls[306](index=306&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 15 for details on ongoing legal matters, including GTT's exclusive license and tax disputes in Guyana - The company is engaged in significant legal and regulatory proceedings in Guyana concerning the exclusivity of its telecommunications license and tax disputes. For full details, see Note 15[111](index=111&type=chunk)[307](index=307&type=chunk) [Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) Refers to risk factors in the 2018 Annual Report on Form 10-K; no new or updated risks in this report - The report refers to the risk factors previously disclosed in the company's 2018 Annual Report on Form 10-K[308](index=308&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the stock repurchase program, with **$37.7 million** remaining available and no shares repurchased during the quarter - As of June 30, 2019, **$37.7 million** remains authorized for share repurchases under the 2016 Repurchase Plan[309](index=309&type=chunk) - No shares were repurchased under the publicly announced plan during the quarter ended June 30, 2019[310](index=310&type=chunk) [Exhibits](index=64&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data files - The filing includes required CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[312](index=312&type=chunk)

ATN International, Inc. (NASDAQ:ATNI) Q2 2019 Earnings Conference Call July 25, 2019 9:30 AM ET Company Participants Justin D. Benincasa - CFO Michael T.C. Prior - President, CEO, and Chairman Conference Call Participants Allen Klee - Maxim Group LLC Richard Prentiss - Raymond James & Associates Hamed Khorsand - BWS Financial Inc. Operator Good day ladies and gentlemen and welcome to the ATN International Second Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-12593 ATN INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation ...

ATN International, Inc. (NASDAQ:ATNI) Q1 2019 Results Earnings Conference Call April 25, 2019 9:30 AM ET Company Participants Michael Prior - Chief Executive Officer Justin Benincasa - Chief Financial Officer Conference Call Participants Ric Prentiss - Raymond James Allen Klee - Maxim Group Hamed Khorsand - BWS Financial Operator Good day, ladies and gentlemen and welcome to the ATN International First Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. Later, we will con ...

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ATN International, Inc (NASDAQ:ATNI) Q4 2018 Earnings Conference Call February 21, 2019 9:30 AM ET Company Participants Justin Benincasa - Chief Financial Officer Michael Prior - Chief Executive Officer Conference Call Participants Ric Prentiss - Raymond James Allen Klee - Maxim Group Hamed Khorsand - BWS Financial Operator Good day, ladies and gentlemen and welcome to the ATN International Fourth Quarter and Full Year 2018 Conference Call. At this time, all participants are in a listen-only mode. Later, we ...