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ATN International(ATNI) - 2021 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total consolidated revenues for Q1 2021 were $124.5 million, up 12% from $110.9 million in Q1 2020 [12] - Consolidated adjusted EBITDA decreased to $24.7 million from $29.9 million in the first quarter of 2020 [12] - Consolidated net income for the quarter was $2.7 million or $0.17 per share, which includes a $2.5 million write-up of one of the minority investments [16] Business Line Data and Key Metrics Changes - In the International Telecom segment, revenues increased to $83.8 million from $82.3 million year-on-year, while adjusted EBITDA decreased to $26.9 million from $27.8 million [13] - U.S. Telecom segment revenues rose to $40.3 million from $27.3 million a year ago, including $12.3 million from the FirstNet project [14] - Adjusted EBITDA for the U.S. Telecom segment declined to $4.6 million from $8.1 million due to higher operating costs [15] Market Data and Key Metrics Changes - Fixed data subscribers in the International Telecom segment increased by about 9% year-on-year, with mobile subscribers also up by 9% [7] - Video subscribers continued to decline, while voice subscribers remained steady [8] - The overall economic activity in the markets remains historically low due to the pandemic, impacting roaming and commercial customer revenues [8] Company Strategy and Development Direction - The company is focusing on cost reduction initiatives in several markets to address rising expenses [8] - The acquisition of Alaska Communications is expected to enhance revenue synergies and accelerate execution of their business strategy [11] - The company is exploring opportunities in federal infrastructure programs to address the digital divide [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the quarter was largely in line with expectations, with strong revenue drivers in International Telecom despite ongoing pandemic challenges [6] - There is optimism regarding the infrastructure bill and its potential benefits for communications infrastructure builds [20] - Management anticipates a pickup in revenue as travel restrictions ease and vaccination efforts progress [8] Other Important Information - The company completed a partial exit from its Indian renewable energy business, allowing a focus on communication services closer to home [6] - Capital expenditures for the quarter were reported at $10.5 million for the International Telecom segment and $14.9 million for the U.S. Telecom segment [14][16] Q&A Session Summary Question: Can you expand on the infrastructure bill and its implications? - Management is closely monitoring the infrastructure bill and believes there is bipartisan support for communications infrastructure builds, with significant funding expected [20][21] Question: What is the expected timeline for the Alaska acquisition? - Management expressed a "get it done" attitude regarding the acquisition, with expectations for closing in the coming months [27][30] Question: What is the status of private networks and their revenue generation? - The company is generating revenue from private networks but anticipates that the prospective revenue is much larger than current figures [44] Question: How does the Alaska acquisition impact cash taxes? - The acquisition is expected to be beneficial for cash taxes due to existing net operating losses [57] Question: What percentage of international EBITDA does One Communications contribute? - Management did not provide a specific breakdown but indicated that One Communications is a substantial contributor to the international segment [39]