ATN International(ATNI) - 2024 Q4 - Annual Results

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]