ATN International(ATNI) - 2022 Q4 - Annual Report

Acquisitions and Investments - The company acquired Sacred Wind Enterprises for $44.4 million, enhancing its infrastructure reach and broadband services in rural Southwest[133]. - The acquisition of Alaska Communications was completed for approximately$339.5 million, expanding broadband telecommunication services in Alaska[136]. - The company has been awarded $145.5 million in grants under the Tribal Broadband Connectivity Program to deploy broadband connectivity on tribal lands[144]. - The company anticipates receiving approximately$20.1 million over 10 years from the Rural Digital Opportunities Fund to provide broadband and voice coverage to over 10,000 households[141]. - The company was allocated up to $207 million under the Replace and Remove Program to remove and replace communications equipment deemed a national security risk[145]. - The company expects to invest approximately$160 million to $170 million in telecommunication networks and business support systems for the year ending December 31, 2023, aimed at driving future subscriber and revenue growth[181]. Revenue and Financial Performance - Total revenue for the year ended December 31, 2022, increased by$142.6 million, or 25.9%, to $725.7 million compared to$602.7 million in 2021[157]. - Communication services revenue rose by $142.6 million, or 25.9$692.2 million in 2022 from $549.6 million in 2021[157]. - Operating income for the year ended December 31, 2022, was$7.9 million, a significant increase of $22.9 million, or 152.9$15.0 million in 2021[157]. - The company reported a net loss attributable to ATN International, Inc. stockholders of $5.6 million in 2022, an improvement of$16.5 million, or 74.5%, from a loss of $22.1 million in 2021[157]. - Net income (loss) attributable to ATN International, Inc. stockholders was a loss of$5.6 million for the year ended December 31, 2022, compared to a loss of $22.1 million for the year ended December 31, 2021[174]. Segment Performance - US Telecom segment revenue surged by$110.8 million, or 42.7%, to $370.2 million in 2022, largely due to a full year of Alaska operations included in the results[154]. - International Telecom segment revenue increased by$12.7 million, or 3.7%, to $355.6 million in 2022, driven by improved retail and marketing strategies[154]. - Mobility revenue increased by$7.7 million, or 7.5%, to $110.0 million in 2022, with all growth attributed to business customers[156]. - Fixed revenue increased by$109.8 million, or 33.4%, to $438.4 million, with$75.9 million from business customers and $33.9 million from consumer customers[159]. - US Telecom segment fixed revenue rose by$109.9 million, or 115.4%, to $205.1 million, primarily due to a full year of Alaska operations included in 2022 results[159]. Expenses and Costs - Total operating expenses increased by$100.1 million, or 16.2%, to $717.8 million in 2022 from$617.7 million in 2021[157]. - Operating expenses for the US Telecom segment rose by $102.5 million to$375.9 million in 2022, primarily due to the inclusion of Alaska operations[154]. - Cost of communication services increased by $63.6 million, or 25.5$312.9 million, with US Telecom segment costs rising by 53.8%[166]. - Selling, general and administrative expenses increased by $43.5 million, or 23.1$231.8 million, with US Telecom segment expenses rising by 53.0%[168]. - Depreciation and amortization expenses increased by $32.4 million, or 31.5$135.1 million in 2022 compared to $102.7 million in 2021[157]. Cash Flow and Liquidity - Cash used in investing activities was$167.2 million and $426.6 million for the years ended December 31, 2022 and 2021, respectively, reflecting a decrease of$259.4 million[179]. - For the year ended December 31, 2022, cash provided by operating activities was $102.9 million, an increase of$22.4 million compared to $80.5 million in 2021, primarily due to a net income increase of$13.2 million[181]. - As of December 31, 2022, total liquidity was approximately $59.7 million in cash, cash equivalents, and restricted cash[178]. - The company had$99.0 million outstanding in borrowings under the 2019 CoBank Credit Facility, with $75.0 million available for future borrowings[184]. Debt and Financing - The Alaska Credit Facility was amended to increase the Revolving Credit Commitment from$35.0 million to $75.0 million and the Term Loan Commitment from$210 million to $230 million[188]. - The company assumed$31.6 million of term debt in connection with the acquisition of Sacred Wind Enterprises, with $31.4 million outstanding as of December 31, 2022[193]. - The company reported compliance with all financial covenants of the 2019 CoBank Credit Facility as of December 31, 2022[184]. - The Receivables Credit Facility had$46.2 million outstanding as of December 31, 2022, with $22.3 million of availability remaining[192]. - The company accrued$14.7 million for legal and regulatory contingencies as of December 31, 2022[209]. Future Outlook - Future fixed revenue growth is expected in US Telecom segment due to expanded broadband access in Alaska and western United States[159]. - The company expects to incur construction costs of approximately $22 million in 2023 related to the FirstNet Agreement[203]. - The company is a recipient of the Connect America Fund Phase II program, expecting to spend$12.5 million in capital expenditures in 2023[205]. - For 2023, the company expects capital expenditures to be approximately $160 million to$170 million, primarily for network expansion and upgrades[203]. Internal Controls and Compliance - As of December 31, 2022, the company concluded that its disclosure controls and procedures were effective at the reasonable assurance level[213]. - The internal control over financial reporting was assessed as effective as of December 31, 2022, based on COSO criteria[214]. - There were no changes in internal control over financial reporting during the quarter ended December 31, 2022, that materially affected the internal controls[216].