Core Viewpoint - ATN International, Inc. is set to release its fourth quarter and full year 2024 results on March 4, 2025, with a conference call scheduled for March 5, 2025, at 10:00 a.m. ET to discuss these results [1] Group 1 - The conference call will be accessible via a live audio webcast, and a replay will be available shortly after the call [2] - Participants must register to join the live call, receiving dial-in numbers and a unique PIN for access [3] Group 2 - ATN International, Inc. is a prominent provider of digital infrastructure and communications services, operating in the U.S. and internationally, particularly in rural and remote markets [4] - The company's services include advanced wireless and wireline connectivity, high-speed Internet, data services, and carrier communications services [4]

Financial Performance - Total revenue for the three months ended September 30, 2024, was $178.5 million, a decrease of 6.5% compared to $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% to $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%, to $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].

1 Q3 2024 Earnings Call October 30, 2024 Q3 FY 2024 2 Safe Harbor and Non-GAAP Financial Measures Definition 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 costs, EBI ...

Financial Data and Key Metrics Changes - Total company revenue for Q3 2024 was $178.5 million, down 7% compared to the same period in 2023, primarily due to the conclusion of government programs impacting the US Telecom segment [26][28] - Operating loss for Q3 was $38.4 million, compared to operating income of $6.8 million in Q3 2023, which included a non-cash $35.3 million goodwill impairment charge [27][28] - Net loss was $32.7 million or $2.26 per share, compared to a net loss of $3.6 million or $0.31 per share in the prior year [28] - Adjusted EBITDA for Q3 was $45.7 million, down 5% from the previous year, mainly due to declines in revenues and margins in the US Telecom segment [29] Business Line Data and Key Metrics Changes - In the International segment, revenues were flat at $94.3 million, but adjusted EBITDA grew to $32.2 million, an increase of 17.3% year-over-year [30][31] - The Domestic segment saw revenues of $84.2 million, down 13% year-over-year, with adjusted EBITDA declining 34.1% to $17.7 million [32] Market Data and Key Metrics Changes - The International segment experienced growth in sales for consumer and business fixed customers, as well as business mobility, despite declines in consumer mobility revenue in Guyana due to competitive pressures [16][18] - High-speed data subscribers increased by 4% year-over-year, reflecting continued strength in international markets [17] Company Strategy and Development Direction - The company is focused on leveraging upgraded network assets and managing costs to improve cash flow and deliver sustainable value [7][10] - Strategic actions include optimizing asset value, advancing cost efficiency initiatives, and leveraging government funding to support capital investments [12][13] - The company is reducing capital expenditures while continuing to fund targeted network expansions through internal resources and government grants [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged underperformance in US operations due to lower prepaid consumer mobility sales and slower sales execution [9] - The company is adjusting its full-year financial outlook, expecting revenues in the range of $720 million to $730 million, down from a previous range of $730 million to $750 million [36] - Management remains confident in the long-term strategy and is committed to positioning the company for sustainable growth despite near-term headwinds [38] Other Important Information - The company reported a non-cash $35 million goodwill impairment charge due to current market dynamics and compression of market multiples [11] - Capital expenditures for the first nine months of the year totaled $85.7 million, down from $126.6 million in the prior year [34] Q&A Session Summary Question: Regarding US Telecom underperformance and cost restructuring - Management indicated that restructuring efforts are already reflected in the numbers, with more structural changes expected to yield benefits in 2025 and beyond [43][44] Question: Spectrum position and potential monetization - Management confirmed that spectrum remains a key asset and they are exploring opportunities to optimize its value, including potential divestitures [46][47] Question: Construction revenues and future projects - Approximately $8 million of construction revenues are expected, with most coming in 2025 due to delays in equipment choices [49] Question: Demand environment in the US market - Management noted strong demand in the enterprise market but acknowledged execution challenges in the consumer segment, particularly due to competitive dynamics [54][55] Question: Subscriber losses and market dynamics - Management clarified that while subscriber maintenance was in line with expectations, unexpected challenges in retaining customers impacted new sales [62] Question: Focus on higher ARPU subscribers in Guyana - The strategy in Guyana is to upgrade the customer base to higher services, focusing on data plan customers, while losing low ARPU voice customers to competition [66][68]

Core Insights - ATN International reported a quarterly loss of $0.10 per share, better than the Zacks Consensus Estimate of a loss of $0.16, and an improvement from a loss of $0.24 per share a year ago, representing an earnings surprise of 37.50% [1] - The company posted revenues of $178.45 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.90%, and down from $191.04 million year-over-year [2] - ATN International shares have declined approximately 18.8% year-to-date, contrasting with the S&P 500's gain of 22.1% [3] Earnings Outlook - The earnings outlook for ATN International is currently favorable, with a consensus EPS estimate of $0.07 on revenues of $187.27 million for the upcoming quarter, and $0.09 on revenues of $743.01 million for the current fiscal year [7] - The company has surpassed consensus EPS estimates two times over the last four quarters, indicating a potential for future performance improvement [2] Industry Context - The Wireless National industry, to which ATN International belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact ATN International's stock performance [5]

Financial Performance - Q3 2024 consolidated revenues were $178.5 million, down 7% from $191.0 million in the year-ago quarter[8]. - Third quarter net loss increased to $32.7 million, or $2.26 per diluted share, including a $35.3 million non-cash goodwill impairment charge[2]. - Adjusted EBITDA decreased by 5% to $45.7 million compared to $47.8 million in the year-ago quarter[11]. - Total revenue for Q3 2024 was $178,451,000, a decrease of 6.5% compared to $191,036,000 in Q3 2023[33]. - Communications services revenue decreased to $174,422,000 from $184,601,000, representing a decline of 5.6% year-over-year[33]. - Operating income for Q3 2024 was a loss of $38,358,000, compared to a profit of $6,836,000 in Q3 2023[33]. - Net loss attributable to ATN International, Inc. stockholders was $32,691,000 for Q3 2024, compared to a loss of $3,584,000 in Q3 2023[33]. - Total revenue for the nine months ended September 30, 2024, reached $548,527,000, comprising $282,697,000 from International Telecom and $265,830,000 from US Telecom[39]. - Total revenue for the nine months ended September 30, 2023, was $563,250,000, with a breakdown of $276,267,000 from International Telecom and $286,983,000 from US Telecom[40]. Guidance and Expectations - Full-year 2024 revenue is now expected to be in the range of $720 million to $730 million, excluding construction revenue[3]. - Adjusted EBITDA for 2024 is now expected to be in the range of $182 million to $188 million[3]. - Updated revenue guidance for full-year 2024 is $720 million to $730 million, down from the previous range of $730 million to $750 million[22]. - Adjusted EBITDA guidance for full-year 2024 is revised to $182 million to $188 million, previously $190 million to $200 million[22]. - The Company expects internally funded capital investments to be 10% to 15% of revenues in 2025[22]. Subscriber and Service Metrics - Total high-speed broadband subscribers increased by 6% year-over-year[2]. - High-Speed Data Broadband Homes Passed increased by 20% year-over-year to 399,500 in Q3 2024[16]. - High-Speed Data Broadband Customers grew by 6% year-over-year to 141,500 in Q3 2024[16]. - Blended churn rate increased slightly to 3.47% in Q3 2024 from 3.44% in Q2 2024[16]. Cash and Debt Position - Total cash and cash equivalents as of September 30, 2024, was $116.8 million, up from $62.2 million on December 31, 2023[19]. - Total debt increased to $568.9 million as of September 30, 2024, compared to $516.9 million on December 31, 2023[19]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $97.4 million, compared to $89.5 million in the prior year[19]. - Cash, cash equivalents, and restricted cash increased significantly to $116.764 million from $62.167 million, marking an increase of approximately 87.6%[46]. - Net debt decreased slightly to $452.142 million from $454.703 million, indicating a reduction of about 0.6%[46]. - The net debt ratio remains stable at 2.39 compared to 2.40 in the previous period, indicating consistent leverage levels[46]. Capital Expenditures - Capital expenditures for 2024 are still expected to be in the range of $100 million to $110 million, net of reimbursements[3]. - Capital expenditures for the nine months ended September 30, 2024, were $85.7 million, down from $126.6 million in the prior year[20]. - The company disbursed $71,849,000 under government capital programs during the nine months ended September 30, 2024, compared to $14,261,000 in the same period of 2023[34]. Impairments and Equity - Goodwill impairment of $35,269,000 was recorded in Q3 2024, with no impairment reported in Q3 2023[33]. - Stockholders' equity decreased to $594,123,000 from $637,803,000, a decline of 6.8%[32]. - The company reported a goodwill impairment of $35,269,000 during the nine months ended September 30, 2024[34].

Core Insights - The company reported a year-over-year increase in total high-speed broadband subscribers by 6% and a 20% expansion in broadband homes passed by high-speed data services [1] - The third quarter of 2024 saw a net loss of $32.7 million, or $2.26 per diluted share, which included a non-cash goodwill impairment charge of $35.3 million [1][7] - The company updated its full-year 2024 revenue guidance to a range of $720 million to $730 million, down from a previous range of $730 million to $750 million [17] Financial Performance - Consolidated revenues for Q3 2024 were $178.5 million, a decrease of 7% from $191.0 million in Q3 2023, primarily due to declines in the US Telecom segment [5][6] - Adjusted EBITDA for Q3 2024 decreased by 5% to $45.7 million compared to $47.8 million in the same quarter last year [8] - Year-to-date net cash from operations increased by 9% year-over-year to $97.4 million [15] Segment Performance - The International Telecom segment's revenues were essentially flat, supported by growth in consumer and business fixed revenues, while the US Telecom segment revenues decreased by 13% [1][3] - The International Telecom segment saw solid fixed revenue gains and business mobility revenue growth, offsetting softness in consumer mobility [3][4] Capital Expenditures and Debt - Capital expenditures for the first nine months of 2024 were $85.7 million, reduced from $126.6 million in the same period of 2023 [1][15] - The net debt ratio is now expected to be in the range of 2.3x to 2.6x exiting 2024, an increase from the previous guidance of 2.25x to 2.50x [17] Strategic Outlook - The company is transitioning from heavy investments to a focus on margin and cash flow improvement as part of its three-year strategic plan initiated in 2021 [12] - Strategic actions are being taken to align the cost structure with current revenue levels while focusing on margin improvement and cash flow generation [4]

Core Viewpoint - ATN International (ATNI) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects a positive earnings outlook for ATN International, potentially leading to increased buying pressure and a rise in stock price [2]. - For the fiscal year ending December 2024, ATN International is expected to earn $0.09 per share, representing a 107.2% increase from the previous year's reported figure [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for ATN International has increased by 113.3%, indicating a strong upward revision trend [5]. - The correlation between earnings estimate revisions and near-term stock movements is well-established, making it a critical factor for investment decisions [4]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revision features [6][7]. - The Zacks Rank 2 upgrade positions ATN International in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [7].

BEVERLY, Mass., Oct. 16, 2024 (GLOBE NEWSWIRE) -- ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, announced today that it will release third quarter 2024 results on Tuesday, October 29, 2024, after market close. The Company will host a conference call to discuss its results at 10:00 a.m. ET on Wednesday, October 30, 2024. Key details regarding the call are as follows: Call Date: Wednesday, October 30, 2024 Call Time: ...

The Zacks Wireless National industry is likely to benefit from healthy demand trends with an accelerated 5G rollout and increased fiber densification, helping bridge the digital divide with seamless connectivity. However, high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions and high customer inventory levels have dented the industry’s profitability.Nevertheless, Cogent Communications Holdings, Inc. (CCOI) , Liberty Latin America Ltd. (LILA) and ATN International, I ...