ATN Reports First Quarter 2024 Results; Revises Full Year 2024 Outlook

Core Insights - The company reported a 1% increase in first-quarter revenues to $186.8 million, driven by a 12% increase in high-speed broadband subscribers and a 28% expansion in broadband homes passed by high-speed data services [1][6][11] - The first quarter net loss increased to $(6.3) million, or $(0.50) per share, influenced by restructuring expenses of $1.2 million, despite an increase in operating income to $4.6 million [1][7][31] - Adjusted EBITDA decreased by 3% to $43.5 million, attributed to higher service costs that offset revenue growth [1][8] Financial Performance - First quarter revenues were $186.8 million, up from $185.8 million year-over-year, primarily due to higher fixed revenues in the International segment [6][11] - Operating income rose to $4.6 million compared to $0.6 million in the previous year, mainly due to lower restructuring expenses and reduced depreciation and amortization [7][8] - The net loss attributable to ATN stockholders was $(6.3) million, compared to $(5.9) million in the same quarter last year, reflecting increased interest and income tax expenses [7][31] Subscriber and Network Growth - Total high-speed broadband subscribers increased by 12%, reaching 137,700, while broadband homes passed by high-speed data services grew by 28% to 386,300 [1][13] - The company continues to execute its "First-to-Fiber" and "Glass & Steel™" strategies to enhance its digital infrastructure and fixed wireless capabilities [4][11] Revised Outlook for 2024 - The company revised its 2024 revenue guidance to a range of $730 million to $750 million, excluding construction revenue, and adjusted EBITDA expectations to $190 million to $200 million [2][5][17] - Capital expenditures for 2024 are now expected to be between $100 million and $110 million, reflecting project delays and a focus on improving operating cash flow [2][5][18] Strategic Initiatives - The company is prioritizing the recovery of project delivery schedules and pursuing business revenue opportunities to mitigate the impact of delays in carrier services projects [5][11] - A three-year strategic investment plan initiated in 2021 aims to accelerate investments in high-speed data and expand broadband subscribers, with a reduction in capital expenditures as the plan nears completion [11][20]