ATN International(US:ATNI)2024-08-09 16:59Financial 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].