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 ...

Financial Performance - The company reported a net loss of $8.2 million for the six months ended June 30, 2024, compared to a net income of $5.1 million for the same period in 2023[11]. - Net income for the three months ended June 30, 2024, was $11,337 thousand, compared to a net loss of $661 thousand in the same period of 2023[15]. - For the three months ended June 30, 2024, the net income attributable to ATN International, Inc. common stockholders was $7.627 million, compared to a net loss of $0.493 million for the same period in 2023[141]. - The operating income for the six months ended June 30, 2024, was $28.890 million, compared to an operating loss of $16.682 million for the same period in 2023[150]. - Net income for the six months ended June 30, 2024, was $3,391,000, a significant improvement compared to a net loss of $7,717,000 for the same period in 2023[22]. - The company reported an operating income of $3.074 million for the six months ended June 30, 2024, compared to an operating loss of $18.566 million in the same period of 2023, indicating a significant improvement[152]. - The effective tax rate for the three months ended June 30, 2024, was 1.8%, significantly lower than 88.5% for the same period in 2023[129]. Revenue and Expenses - Total revenue for the three months ended June 30, 2024, was $183,281 thousand, a decrease of 1% from $186,441 thousand in the same period of 2023[12]. - Total revenue for the six months ended June 30, 2024, was $370.1 million, a slight decrease from $372.2 million in the same period of 2023[44]. - Total revenue for the Company reached $46,892 million, with US Telecom contributing $43,636 million and International Telecom $3,256 million[115]. - Total operating expenses decreased by $25.036 million, or 13.6%, to $158.965 million from $184.001 million[194]. - Operating expenses for the three months ended June 30, 2024, totaled $158,965 thousand, down from $184,001 thousand in the same period of 2023, reflecting a decrease of approximately 14%[12]. - Total mobility revenue reached $55.099 million, while total fixed revenue was $235.567 million, indicating a strong performance in fixed services compared to mobility[152]. Assets and Liabilities - Total current assets increased to $295.9 million as of June 30, 2024, compared to $281.3 million as of December 31, 2023, reflecting a growth of approximately 5.5%[9]. - Total liabilities decreased to $1,060.3 million as of June 30, 2024, down from $1,059.9 million as of December 31, 2023, showing a slight reduction of approximately 0.04%[9]. - The company’s total assets decreased to $1,772.3 million as of June 30, 2024, down from $1,783.7 million, indicating a decline of about 0.6%[9]. - Total debt, including the current portion, was $540.835 million as of June 30, 2024, a decrease from $516.870 million as of December 31, 2023, indicating a reduction in leverage[154]. - The company accrued $12.5 million for potential liabilities arising from various claims and regulatory proceedings as of June 30, 2024, reflecting ongoing legal challenges[162]. Cash Flow and Investments - The company reported net cash provided by operating activities of $58,410,000 for the six months ended June 30, 2024, compared to $60,329,000 for the same period in 2023[22]. - Total cash, cash equivalents, and restricted cash at the end of the period was $73,253,000, up from $67,222,000 at the end of June 2023, reflecting a net change in cash of $11,086,000[22]. - The company’s cash and cash equivalents increased to $58.9 million as of June 30, 2024, compared to $49.2 million at the end of 2023, representing a growth of approximately 19.5%[9]. - The company has developed significant operational expertise to enhance service quality and economies of scale in rural and remote markets[24]. - The company actively evaluates investment opportunities and strategic transactions to complement its telecommunications business model[25]. Segment Performance - As of June 30, 2024, the company identified two operating segments: International Telecom and US Telecom, focusing on various telecommunications services[27]. - International Telecom segment revenues increased by $3.4 million, or 3.7%, to $95.4 million for the three months ended June 30, 2024, driven by a 4.2% increase in Fixed Revenues[191]. - Revenue in the US Telecom segment decreased by $6.6 million, or 7.0%, to $87.9 million from $94.5 million, primarily due to the conclusion of the Emergency Connectivity Fund[192]. - Operating income in the International Telecom segment increased by $17.8 million, or 121.9%, to $32.4 million from $14.6 million for the same period[192]. Capital Expenditures and Grants - Capital expenditures for the six months ended June 30, 2024, were $61,830,000, a decrease from $89,451,000 in the same period of 2023[22]. - The company has been awarded construction grants totaling $100,149 thousand as of December 31, 2023, with expectations to meet all requirements associated with these grants[118]. - Under the Replace and Remove Program, the Company has spent a total of $112,042 thousand by June 30, 2024, with pending reimbursements of $42,773 thousand[123]. - The company anticipates that all amounts spent under the Replace and Remove Program will be reimbursed within the next twelve months[185]. Debt and Financing - The Company incurred restructuring expenses totaling $12.4 million since Q1 2023, with $1.2 million and $3.3 million recorded in the six months ended June 30, 2024, and 2023, respectively[32]. - The Company entered into a forward starting interest rate swap agreement with a notional amount of $50 million, fixed at 4.896%, effective November 13, 2023[88]. - The Company holds investments without a readily determinable fair value totaling $41,710 thousand, with fair value investments at $931 thousand as of June 30, 2024[76]. - The Company expects to receive an aggregate of $27.7 million annually from the Connect America Fund Phase II program through December 2025[110]. Operational Developments - The company continues to focus on expanding its digital infrastructure and communications services in rural and remote markets, both domestically and internationally[164]. - The company entered into a Carrier Managed Services Master Agreement with Verizon to provide network and infrastructure services, with an initial term ending in 2030[174]. - The company expects to complete the build for the FirstNet project by the end of 2024, with minimal impact on operating income from construction revenues[173].

Core Viewpoint - ATN International (ATNI) has seen a 16.4% increase in share price over the past four weeks, closing at $27.03, with a mean price target of $36 indicating a potential upside of 33.2% [1] Price Targets and Analyst Consensus - The average price target for ATNI ranges from a low of $30 to a high of $45, with a standard deviation of $7.94, suggesting variability in analyst estimates [1] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement direction and magnitude [4] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about ATNI's earnings prospects, with a 69.5% increase in the Zacks Consensus Estimate for the current year, reflecting two upward revisions and no negative revisions [5] - ATNI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [5] Limitations of Price Targets - Price targets set by analysts can often mislead investors, as empirical research shows they rarely indicate actual stock price movements [3] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [3]

ATN International, Inc. (NASDAQ:ATNI) Q2 2024 Earnings Call Transcript July 25, 2024 10:00 AM ET Company Participants Michele Satrowsky - Corporate Treasurer & Head of IR Brad Martin - CEO Carlos Doglioli - CFO Conference Call Participants Rick Prentiss - Raymond James Hamed Khorsand - BWS Financial Greg Burns - Sidoti Operator Good day, and thank you for standing by. Welcome to the ATN International Q2 2024 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. Afte ...