Company Overview - ATN International, Inc. is a leading provider of digital infrastructure and communications services, headquartered in Beverly, Massachusetts [4] - The company operates in the United States and internationally, focusing on rural and remote markets with increasing 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] Upcoming Financial Results - ATN will release its second quarter 2025 results on August 7, 2025, after market close [1] - A conference call to discuss the results will be held on August 8, 2025, at 10:00 a.m. ET [1] - The call will be accessible via a live audio webcast, with a replay available shortly after the call [2] Participation Details - Participants must register through a provided link to receive dial-in numbers and a unique PIN for the live call [3] - If participants forget their PIN or lose the registration confirmation, they can re-register to obtain a new PIN [3] Additional Information - An investor presentation will be available as a supplement to the conference call on the company's Investor Relations website [2] - For further information, the company can be contacted through its corporate treasurer or investor relations [6]

Core Points - ATN International, Inc. announced a quarterly dividend increase of 15% to $0.275 per share, payable on July 7, 2025 [1] - The decision to increase the dividend reflects the company's confidence in its financial strength and future cash flow generation [2] - The company is focused on monetizing investments made during a recent three-year strategic capital spending cycle, supported by cost management and efficiency initiatives [2] Company Overview - ATN International, Inc. is headquartered in Beverly, Massachusetts, and provides digital infrastructure and communications services in the U.S. and internationally, particularly in rural and remote markets [3] - The company's services include advanced wireless and wireline connectivity, high-speed Internet, data services, and carrier and enterprise communications services [3]

Financial Performance - Total revenue for the three months ended March 31, 2025, was $179.294 million, a decrease of 4.0% from $186.794 million in the same period of 2024[14]. - Communication services revenue decreased to $174.031 million from $181.268 million, reflecting a decline of 4.0% year-over-year[14]. - Net loss attributable to ATN International, Inc. stockholders for Q1 2025 was $8.928 million, compared to a net loss of $6.315 million in Q1 2024, representing an increase in loss of 41.5%[14]. - Basic and diluted net loss per share for Q1 2025 was $(0.69), compared to $(0.50) in Q1 2024, indicating a worsening in per-share performance[14]. - The company reported comprehensive loss attributable to ATN International, Inc. of $8.497 million for Q1 2025, compared to $4.883 million in Q1 2024, indicating a significant increase in comprehensive loss[17]. - For the three months ended March 31, 2025, the company reported a net loss of $11,387,000, compared to a net loss of $7,948,000 for the same period in 2024, indicating a year-over-year increase in losses of approximately 43%[22]. - The company reported a total comprehensive loss of $10,956,000 for the three months ended March 31, 2025, compared to a total comprehensive loss of $6,516,000 for the same period in 2024, indicating a 68.0% increase in losses[22]. - The effective tax rate for the three months ended March 31, 2025 was 1.7%, a significant improvement from the effective tax rate of (25.6%) for the same period in 2024[137][138]. Assets and Liabilities - Total current assets decreased slightly to $305.707 million as of March 31, 2025, from $309.161 million at December 31, 2024[12]. - Total liabilities decreased to $1,049.174 million as of March 31, 2025, from $1,055.349 million at December 31, 2024[12]. - Cash and cash equivalents increased to $83.452 million as of March 31, 2025, compared to $73.393 million at December 31, 2024, showing a growth of 13.9%[12]. - Total assets as of March 31, 2025, were $1,707,449 million, compared to $1,727,103 million at the end of 2024, showing a decrease of approximately 1.1%[157]. - Total debt, including current portion, was $562,384 million as of March 31, 2025, slightly up from $557,356 million at the end of 2024[157]. Cash Flow and Expenditures - The company generated net cash provided by operating activities of $35,905,000 for the three months ended March 31, 2025, compared to $23,176,000 for the same period in 2024, reflecting a year-over-year increase of approximately 55%[22]. - Capital expenditures for the three months ended March 31, 2025, were $20,832,000, a decrease from $36,016,000 in the same period of 2024, indicating a reduction of approximately 42%[22]. - The company declared dividends of $3,652,000 on common stock for the three months ended March 31, 2025, compared to $3,720,000 in the same period of 2024, showing a slight decrease of about 2%[22]. Strategic Focus and Investments - The company continues to focus on strategic investment plans and expansion of its customer base, despite facing challenges in operating margins and subscriber growth[8]. - The company is actively evaluating investment opportunities and strategic transactions to enhance its telecommunications business and generate excess operating cash flows[24]. - The company is focused on expanding its digital infrastructure and communications services in rural and remote markets in the U.S. and internationally, including Bermuda and the Caribbean[23]. Revenue Recognition and Performance Obligations - Revenue recognized under ASC 606 for services transferred over time was $158.221 million for Q1 2025, up from $166.603 million in Q1 2024, indicating a decline of about 5.0%[40]. - Remaining performance obligations totaled $595 million as of March 31, 2025, with approximately 43% expected to be satisfied within the next 24 months[47]. - The company recognized $18.3 million in revenue related to contract liabilities during the three months ended March 31, 2025[45]. - Government support revenue for the three months ended March 31, 2025, was $12.672 million, compared to $11.780 million for the same period in 2024, showing an increase of approximately 7.5%[40]. Operational Segments - Operating income for the International Telecom segment was $14.750 million for the three months ended March 31, 2025, while the US Telecom segment reported an operating loss of $2.415 million[154]. - The company’s operating segments include US Telecom and International Telecom, focusing on providing digital infrastructure and communication services in rural and remote markets[23][26].

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $179.3 million, down 4% year over year, primarily due to the wind down of COVID-era government subsidy programs [17][18] - Adjusted EBITDA increased by 2% to $44.3 million, supported by growth in the international segment, despite a decline in the U.S. segment [19] - Cash from operations increased by 55% to $35.9 million, reflecting improved working capital management [21] Business Line Data and Key Metrics Changes - International segment revenues increased to $94.5 million from $93.1 million year over year, with adjusted EBITDA rising to $32.4 million, up from $29.3 million [20] - Domestic segment revenues decreased by 9.5% to $84.8 million, with adjusted EBITDA down 15.4% to $17.5 million due to the conclusion of government subsidy programs [20] Market Data and Key Metrics Changes - The number of broadband homes passed by high-speed data services increased by 11% year on year to 427,000 households, with a 2% growth in high-speed subscriber base [8] - Demand for high-speed broadband and business services remained steady, contributing to improvements in average revenue per user (ARPU) [10] Company Strategy and Development Direction - The company aims to grow its fiber and fiber-fed business while transitioning from legacy consumer services, focusing on operational performance and disciplined investment [11][13] - Approximately $370 million in government-funded broadband infrastructure projects are underway, with over half expected to be completed in 2025, supporting long-term growth strategy [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in the company's strategy and financial foundation, reaffirming the 2025 outlook [6][13] - The company is monitoring trade and tariff developments, believing it can manage any near-term impacts within its existing financial outlook [14] Other Important Information - The company plans to shift the timing of its earnings release and calls by approximately one week to better align with its 10-Q filing [4][5] - Capital expenditures in Q1 totaled $20.8 million, a reduction from $36 million in the prior year's quarter, reflecting a shift towards increasing operational cash flow [22] Q&A Session Summary Question: How insulated is the company from trade and tariff impacts? - Management indicated that a significant portion of construction materials is sourced in the U.S., while electronics are monitored closely due to potential tariff impacts [33][34] Question: What is the company's exposure to foreign exchange rates? - The company has not seen significant fluctuations in its international markets, particularly in Guyana, which has a buffer due to oil exports [36] Question: How does the company view the marketplace regarding private versus public multiples? - Management is observing the vibrant market dynamics and is focused on unlocking value for investors [37][38] Question: How will government funding impact financials? - Approximately half of the $370 million in government funding projects are expected to be completed in 2025, with significant monetization anticipated in 2026 and 2027 [40][41] Question: What is the outlook for growth in 2026 and 2027? - Management expressed optimism about growth prospects based on carrier demand and ongoing transitions to fiber services [62] Question: How is the company managing interest costs and free cash flow? - The company is focused on improving margins and reducing capital expenditures to enhance free cash flow and provide better capital allocation options [64][65]

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $179.3 million, down 4% year over year, primarily due to the wind down of COVID-era government subsidy programs [16] - Adjusted EBITDA increased by 2% to $44.3 million, supported by growth in the international segment [17] - Net loss for Q1 was $8.9 million, compared to a net loss of $6.3 million in the prior year [16][17] - Cash from operations increased by 55% to $35.9 million, reflecting improved working capital management [20] Business Line Data and Key Metrics Changes - International segment revenues increased to $94.5 million, up from $93.1 million year over year, driven by carrier services growth [18] - Adjusted EBITDA for the international segment rose to $32.4 million, an increase of 10% year over year [18] - Domestic segment revenues were $84.8 million, down 9.5% year over year, impacted by the conclusion of government subsidy programs [19] Market Data and Key Metrics Changes - The number of broadband homes passed by high-speed data services increased by 11% year on year to 427,000 households [8] - High-speed subscriber base grew by 2% year on year, indicating steady demand for broadband services [8] Company Strategy and Development Direction - The company aims to grow its fiber and fiber-fed business while transitioning from legacy consumer services [10] - Approximately $370 million in government-funded broadband infrastructure projects are underway, with over half expected to be completed in 2025 [11] - The focus remains on expanding high-speed broadband and business services in international markets while stabilizing the U.S. business around sustainable revenue streams [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in operational performance and disciplined investment strategies [6] - The company reaffirmed its 2025 outlook, expecting revenue to align with 2024 levels, excluding construction revenue [22] - Management is monitoring trade and tariff developments, believing they can manage any near-term impacts within the existing financial outlook [13] Other Important Information - The company plans to shift the timing of its earnings release and calls by approximately one week to better align with its 10-Q filing [4][5] - Capital expenditures in Q1 totaled $20.8 million, a reduction from $36 million in the prior year's quarter, reflecting a shift towards increasing operational cash flow [21] Q&A Session Summary Question: How insulated is the company from trade and tariff impacts? - The company sources a significant portion of its fiber construction materials in the U.S., while electronics are monitored closely due to potential tariff impacts [31][33] Question: What is the company's exposure to foreign exchange rates? - The majority of international operations are in stable markets, with no significant fluctuations observed so far [35] Question: How does the company view the marketplace regarding private versus public multiples? - The company is observing the vibrant market dynamics and is focused on unlocking value for investors [36] Question: How will government funding impact financials? - Approximately half of the $370 million in government funding projects are expected to be completed in 2025, with significant monetization anticipated in 2026 and 2027 [40][41] Question: What is the outlook for the BEAD program? - The company is participating in the BEAD program, with funding dynamics being monitored closely, and expects delays in award timing [44][46] Question: What progress has been made in monetizing investments? - New leadership teams have been established, and there is growing carrier demand for access and transport services, indicating positive progress [49][51]

Financial Performance - ATN International's Q1 2025 total revenue reached $179 million[17], while adjusted EBITDA amounted to $44 million[17] - International Telecom segment revenue increased by 2% to $94 million[22] and adjusted EBITDA grew by 11% to $32 million[22] - US Telecom segment revenue decreased by 10% to $85 million[23] and adjusted EBITDA declined by 15% to $18 million[23] Key Performance Indicators - High-Speed Data Broadband Homes Passed increased by 11% year-over-year to approximately 427,000[15] - High-Speed Data Customers increased by 2% year-over-year to approximately 141,000[15] - International Mobile Subscribers decreased by 3% year-over-year to approximately 392,000[15], with Pre-Paid subscribers decreasing by 4% and Post-Paid subscribers increasing by 4%[15] - Fiber Route Miles increased by 2% year-over-year to over 11,900[13] Balance Sheet and Capital Allocation - The company's cash position is $97 million[26], with a debt position of $562 million[26] and undrawn revolver capacity of $195 million[26] - Net Debt Ratio is 2.52x[26] - Q1 2025 capital expenditures totaled $21 million[26] 2025 Outlook - The company reaffirms its full-year 2025 outlook, expecting revenue (excluding construction revenue) to be in line with 2024 revenue of $725 million[29], adjusted EBITDA to be flat with 2024 adjusted EBITDA of $184 million[29], and capital expenditures between $90 million and $100 million[29]

Financial Performance - Consolidated revenues for Q1 2025 were $179.3 million, a decline of 4% from $186.8 million in Q1 2024[8] - Adjusted EBITDA increased by 2% to $44.3 million in Q1 2025, compared to $43.5 million in the same quarter last year[12] - Net loss attributable to ATN stockholders was $(8.9) million, or $(0.69) per share, compared to a net loss of $(6.3) million, or $(0.50) per share in Q1 2024[11] - Total revenue for Q1 2025 was $179.294 million, a decrease of 4.0% from $186.794 million in Q1 2024[37] - Communications services revenue was $174.031 million, down 4.0% from $181.268 million year-over-year[37] - Operating income for Q1 2025 was $2.667 million, compared to $4.574 million in Q1 2024, reflecting a decline of 41.7%[37] - Basic and diluted net income (loss) per share was $(0.69) for Q1 2025, compared to $(0.50) in Q1 2024[37] - Adjusted EBITDA for Q1 2025 was $44,339 million, compared to $43,518 million in Q1 2024, reflecting a year-over-year increase of 1.9%[45] - Total operating expenses for Q1 2025 were $176,627 million, up from $182,220 million in Q1 2024, indicating a decrease of 3.2%[41] - The company reported an operating income of $2,667 million for Q1 2025, compared to $4,574 million in Q1 2024, representing a decline of 41.8%[41] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by 55% to $35.9 million in Q1 2025, compared to $23.2 million in Q1 2024[19] - Capital expenditures for Q1 2025 were $20.8 million, down from $36.0 million in the prior year period[19] - Net cash provided by operating activities was $35.905 million for Q1 2025, an increase from $23.176 million in Q1 2024[39] - Capital expenditures for Q1 2025 were $20.832 million, down from $36.016 million in the same period last year[39] - The company reported a net change in total cash, cash equivalents, and restricted cash of $8.015 million for the quarter, ending with a total of $97.259 million[39] Assets and Liabilities - Total assets decreased to $1.707 billion as of March 31, 2025, from $1.727 billion at the end of 2024[35] - Total liabilities were $1.049 billion as of March 31, 2025, slightly down from $1.055 billion at the end of 2024[35] - Total current assets as of March 31, 2025, were $305,707 million, slightly down from $309,161 million at the end of 2024[41] - Total debt, including the current portion, was $562,384 million as of March 31, 2025, compared to $557,356 million at the end of 2024, showing a slight increase[48] - The company’s total assets were $1,707,449 million as of March 31, 2025, compared to $1,727,103 million at the end of 2024, reflecting a decrease[48] Debt Management - The net debt ratio was 2.52x as of March 31, 2025, compared to 2.54x at the end of 2024[18] - The net debt ratio improved to 2.52 as of March 31, 2025, down from 2.54 at the end of 2024, indicating better leverage management[48] Subscriber Growth - High-speed broadband homes passed increased by 11% to 427,300 in Q1 2025[16] - Total high-speed subscribers grew by 2% to 141,300 in Q1 2025[16] Future Outlook - For full year 2025, revenue excluding construction revenue is expected to align with last year's result of $725 million[23] - Adjusted EBITDA for full year 2025 is expected to be essentially flat with the prior year result of $184 million[23] Non-controlling Interests - The company reported a net income attributable to non-controlling interests of $2,459 million for Q1 2025, compared to $1,633 million in Q1 2024, indicating an increase of 50.6%[41]

Company Performance - ATN International reported a quarterly loss of $0.57 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.10, marking an earnings surprise of -470% [1] - The company posted revenues of $179.29 million for the quarter ended March 2025, slightly exceeding the Zacks Consensus Estimate by 0.35%, but down from $186.79 million a year ago [2] - Over the last four quarters, ATN International has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Outlook - The stock has increased approximately 8.9% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $183.71 million, and for the current fiscal year, it is -$0.08 on revenues of $728.03 million [7] Industry Context - The Wireless National industry, to which ATN International belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ATN International's stock performance [5][6]

Core Insights - ATN International, Inc. reported a 4% decline in consolidated revenues for Q1 2025, totaling $179.3 million compared to $186.8 million in Q1 2024, primarily due to the wind-down of subsidy programs in the US Telecom segment [6][9][4] - Adjusted EBITDA increased by 2% year-over-year to $44.3 million, supported by disciplined cost management despite lower revenues [9][4] - The company experienced a net loss of $8.9 million, or $0.69 per share, compared to a net loss of $6.3 million, or $0.50 per share, in the previous year [9][8] Financial Performance - Operating income decreased to $2.7 million in Q1 2025 from $4.6 million in Q1 2024, impacted by lower revenues and increased transaction-related charges [7][9] - Net cash provided by operating activities rose significantly by 55% to $35.9 million, up from $23.2 million in the prior year [17][9] - Capital expenditures for the quarter were $20.8 million, down from $36.0 million in the same period last year [17][9] Segment Performance - International Telecom segment revenue increased to $94.5 million, while US Telecom segment revenue decreased to $84.8 million [11][41] - The International segment maintained positive momentum with consistent demand for high-speed services, contributing to a year-over-year increase in Adjusted EBITDA [5][4] - The US Telecom segment is undergoing a transition strategy to align networks with business and carrier solutions, which is expected to impact near-term revenue but improve margins over time [5][4] Business Outlook - The company reaffirmed its full-year 2025 outlook, expecting revenues (excluding construction revenue) to align with last year's result of $725 million and Adjusted EBITDA to remain flat at approximately $184 million [22][19] - Capital expenditures for 2025 are projected to be in the range of $90 to $100 million, with the Net Debt Ratio expected to remain flat or slightly improve by the end of 2025 [22][19] - The focus for 2025 is on expanding cash flow and capturing benefits from strategic investments made over the past three years [19][4]

Group 1 - ATN International (ATNI) is a notable stock in the Computer and Technology sector, currently outperforming its peers with a year-to-date return of 6.4% compared to the sector average of -11.2% [4] - The Zacks Rank for ATN International is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 74.7% increase in the consensus estimate for full-year earnings over the past three months [3][4] - ATN International belongs to the Wireless National industry, which has an average year-to-date return of 9.7%, indicating that ATNI is slightly underperforming its industry [6] Group 2 - Another stock in the Computer and Technology sector, Spotify (SPOT), has shown a year-to-date return of 33.6% and has a Zacks Rank of 2 (Buy) with a 20.7% increase in the consensus estimate for its current year EPS over the past three months [5] - The Computer and Technology sector is ranked 8 in the Zacks Sector Rank, which measures the strength of individual sector groups [2]