ATN International(US:ATNI)2021-10-30 01:42Financial Data and Key Metrics Changes - Total consolidated revenues for Q3 2021 were $166.8 million, up 49% from the previous year, with consolidated adjusted EBITDA at $36.8 million compared to $31.2 million [17] - The consolidated net loss for the quarter was $2.6 million, or $0.22 per share, which includes $1.6 million of non-cash stock-based compensation expense [21][22] Business Line Data and Key Metrics Changes - In the International segment, revenues were $85.3 million, up from $82.5 million a year ago, while adjusted EBITDA decreased to $26.9 million from $29.7 million [18] - The U.S. Telecom segment reported revenues of $81.5 million, an increase of $53.4 million year-on-year, with adjusted EBITDA rising to $16.4 million, up $8.5 million from last year [19] Market Data and Key Metrics Changes - The International segment added nearly 38,000 mobile subscribers, representing a 13% annual increase, while broadband subscribers grew to approximately 144,000, a 5% increase year-on-year [9] - The U.S. Telecom segment now has about 58,000 broadband subscribers, contributing to over $200,000 for the company as a whole [13] Company Strategy and Development Direction - The company aims to connect more communities to high-speed data access, leveraging the acquisition of Alaska Communications and expanding broadband networks in Caribbean markets [6] - A multi-year program is in place to increase data speeds offered on networks, with a focus on converting lower-speed subscribers to higher-speed plans [10] Management's Comments on Operating Environment and Future Outlook - Management expects continued revenue growth in both International and U.S. Telecom segments, with a focus on maintaining subscriber bases and pursuing growth in the business and enterprise sector, particularly in Guyana [11][12] - The company anticipates that higher expenses in the International Telecom segment will negatively impact EBITDA comparisons in the near term, but expects revenue growth to improve margins in the future [7][28] Other Important Information - Capital expenditures for the International segment were $10.6 million for the quarter, while the U.S. Telecom segment incurred $17.4 million in capital expenditures [19][21] - The company has returned $13 million to shareholders through dividends and share buybacks year-to-date [22] Q&A Session Summary Question: What are the trends for data subscribers in the International segments? - Management noted that while net adds may slow as areas reach better penetration rates, churn remains low and they expect continued subscriber growth in the long run [25] Question: What metrics should be monitored for Alaska operations? - Key metrics include the reach of the fiber network, fiber-connected towers, and the number of connected communities and businesses [27] Question: What are the expectations for international margins? - Management did not provide specific targets but indicated that a healthy integrated telecom in mature markets would be on the higher end of the margin range discussed [29] Question: How much FCC support revenue is still being received in the U.S. Virgin Islands? - The company is currently receiving about $10.9 million annually, which is expected to decrease significantly in the coming years [36][49] Question: Are there any supply chain issues affecting operations? - Management acknowledged some supply chain challenges, particularly related to materials and labor, but stated it has not been material overall [52][54] Question: What is the strategy regarding LEO satellite services? - The company views LEO satellite services as a valuable tool for connecting challenging communities, with lower gross margins compared to fiber but attractive free cash flow potential [57][59]