ATN International(US:ATNI)2023-04-29 18:15Financial Data and Key Metrics Changes - Total consolidated revenues increased by 8% year-over-year, reaching the highest level in over a decade [17][10] - Operating income improved to $0.6 million from $0.1 million a year ago [17] - Adjusted EBITDA rose by 6% year-over-year, driven by strength in the international segment and steady domestic results [17][18] - Net loss for the quarter increased to $5.9 million, or a loss of $0.44 per share, primarily due to a $5.4 million increase in interest expense [21] Business Line Data and Key Metrics Changes - International segment revenues rose by 4%, with adjusted EBITDA up by 5%, supported by growth in broadband and mobile subscribers [18] - U.S. segment revenues increased by 12%, with adjusted EBITDA up by 16%, mainly due to strong performance in Alaska and the Sacred Wind acquisition [19][21] - Homes passed by broadband networks grew to approximately 736,000, a 21% increase year-over-year [11] Market Data and Key Metrics Changes - Mobile subscribers in the international segment increased by 13% year-over-year, reaching over 328,000 [11] - 55% of broadband subscribers were connected to fiber or higher-speed networks, reflecting an 18% year-over-year growth in high-speed data subscribers [11] Company Strategy and Development Direction - The company is focused on providing connectivity in underserved areas, including the Caribbean and rural U.S. regions [5][6] - Strategic initiatives include "glass and steel" and "first to fiber," aimed at expanding market leadership and improving customer retention [6][7] - The company is investing in quality assets to enhance market position and reduce customer churn [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of revenue and long-term growth prospects, tracking to the three-year plan established in 2022 [10][14] - The company anticipates continued revenue and EBITDA growth trends throughout 2023 [10][25] - Management highlighted the importance of maintaining financial flexibility to support strategic investments [15][16] Other Important Information - The company reported core CapEx for the quarter of $50.6 million, with expectations for lower CapEx spending for the remainder of the year [22][24] - The consolidated net debt to adjusted EBITDA ratio was 2.3 times, indicating a strong balance sheet [23] Q&A Session Summary Question: Update on FirstNet contract completion and revenue expectations - Management indicated that the FirstNet project is about 75% complete, with revised revenue expectations of $12 million to $14 million for the year [28][30] Question: Impact of Sacred Wind acquisition on guidance - The Sacred Wind acquisition is included in the overall guidance, contributing approximately $10 million of annual EBITDA [32] Question: Market share and growth opportunities in international wireless - Management noted that subscriber growth is primarily from taking market share rather than overall market growth [46] Question: Future CapEx expectations - Management expects CapEx to step down significantly in 2024, with a gradual decrease starting next year [44][45] Question: Preparations for roaming business changes - Management believes they have accounted for necessary charges and will continue to utilize existing towers while phasing out some sites [51] Question: Seasonality in Alaska's fiber build business - There is minimal seasonality in the Alaska business, although certain quarters may see larger numbers due to project timing [52][53]