ATN International(US:ATNI)2021-02-28 06:29Financial Data and Key Metrics Changes - Total consolidated reported revenues for Q4 2020 were $123.7 million, up 10% from $112.1 million in Q4 2019 [19] - Adjusted EBITDA for Q4 2020 was $30.5 million, an increase of 7% over $28.5 million in Q4 2019 [19] - The company reported a net loss of $20.5 million or $1.29 per share, which included a $21.5 million loss on the sale of Vibrant Energy [25] Business Line Data and Key Metrics Changes - In the International Telecom segment, Q4 revenues increased slightly to $83.8 million, with adjusted EBITDA rising 6% to $28.1 million [19] - In the U.S. Telecom segment, Q4 revenues totaled $38.7 million, up from $27.8 million a year ago, primarily due to $10.5 million of FirstNet construction revenue [21] - Adjusted EBITDA for the U.S. Telecom segment was $7.2 million, down from $8.3 million in Q4 2019 [21] Market Data and Key Metrics Changes - Fixed data subscribers in the International Telecom segment increased by over 10% year-on-year, while mobile subscribers grew by roughly 7% [8] - The company expects continued investment in advanced services, including higher speed fixed and mobile data, despite challenges from regulatory changes in several markets [9] Company Strategy and Development Direction - The company is transitioning its U.S. Telecom business from roaming-based wholesale revenue to a mix of backhaul, tower rentals, and enterprise services [10] - The acquisition of Alaska Communications is seen as a strategic move to enhance capabilities and drive revenue synergies [16][17] - The company plans to invest significantly in private networks and expand its sales and marketing activities in 2021 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for economic recovery in tourist-dependent markets and significant growth in Guyana's economy [9] - The company anticipates lower EBITDA for the U.S. Telecom segment in 2021 but believes the investments made will yield growth and better economics in the medium term [18] - Management highlighted the resilience demonstrated in 2020 and the focus on core communications services as a foundation for future growth [5][18] Other Important Information - The company completed the sale of 67% of its equity interest in Vibrant Energy, receiving approximately $21 million [24] - The company ended Q4 2020 with total cash and short-term investments of $104 million and total debt outstanding of $72.8 million [25] - The expected net leverage ratio post-acquisition of Alaska Communications is projected to be under 2x, providing financial flexibility for future investments [26] Q&A Session Summary Question: How will the funding for the Alaska acquisition work? - The funding will be roughly 50% equity capital needed from both ATN and Freedom 3 Capital, with ATN's cash outlay expected to be in the $70 million to $75 million range [29][31] Question: What are the expected revenue synergies from the Alaska acquisition? - Specifics on CapEx and revenue synergies are still being planned, but opportunities for fiber expansion and private networks are anticipated [32] Question: How will the Navajo Nation project impact revenue growth? - The partnership is expected to lead to subscriber gains, which will flow through to revenue, although initial costs may impact EBITDA [35][36] Question: What is the trajectory of the remaining carrier services revenue? - A decline is expected in the long term unless the business transitions successfully, with opportunities to fill the gap through wholesale services [50] Question: What is the current market share in the wireless segment? - There is significant opportunity to increase market share, driven by new capabilities and improved sales strategies [56] Question: What activities are being pursued in sales and marketing for private LTE? - The company is building out its sales force and pursuing both direct and indirect channels to enhance market presence [60][62] Question: How will the Alaska acquisition be reported in terms of EBITDA? - The operations will be consolidated, and all EBITDA will be reported, with a minority interest adjustment [68]