ATN International(US:ATNI)2023-07-30 18:41Financial Data and Key Metrics Changes - Total Q2 consolidated revenues increased by 4% year-over-year, with operating income improving to $2.4 million from $1.7 million last year, and adjusted EBITDA rising 10% to $4.1 million driven by strong subscriber growth [16][19] - Total net income for the quarter increased to $800,000, reflecting a loss of $0.03 per share, which includes the impact of preferred dividends [16] Business Line Data and Key Metrics Changes - International revenues rose 4% in the quarter, with adjusted EBITDA up 7%, driven by strong broadband and mobile subscriber growth, partially offset by a reduction in federal high-cost support subsidies for the U.S. Virgin Islands [17] - In the U.S. segment, revenues were up 4% due to growth in fixed revenues from strong enterprise sales in Alaska, despite reductions in legacy roaming revenues [18] Market Data and Key Metrics Changes - The high-speed subscriber base and international mobile subscriber base each grew by double digits, with homes passed by high-speed data networks increasing 10% sequentially and 66% year-over-year [8][9] - The international mobile subscriber base reached over 399,000, marking a 14% increase from the same period last year [9] Company Strategy and Development Direction - The company is focused on its Glass & Steel and First-to-Fiber strategies, targeting regions such as Alaska, the Western U.S., rural tribal lands, and the Caribbean [7] - A long-term agreement with Verizon Wireless was announced, emphasizing the transition from wholesale roaming services to providing infrastructure and technical services, which will generate stable long-term recurring revenue [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive positioning and the positive momentum heading into the second half of 2023, driven by growing revenue, improved margins, and expanding subscriber bases [14] - The company expects to reduce capital expenditures and increase operating cash flows, aiming to lower the net leverage ratio by the end of 2024 [22] Other Important Information - The company completed a $300 million debt refinancing, extending and expanding its senior secured credit facilities, which enhances financial flexibility [13][21] - The company was awarded a $10 million grant to build a fiber and fixed wireless network in New Mexico, which will serve over 11,000 unserved and underserved locations [11] Q&A Session Summary Question: Was the recent acquisition the November acquisition of Sacred Wind? - Yes, it was the last year's acquisition of Sacred Wind [26] Question: Is the Verizon contract more about recurring revenues rather than construction? - Yes, it will be more consistent recurring revenue without construction revenue [28] Question: Are there any near-term headwinds from the new North American wireless carrier contract? - No, there are no near-term headwinds anticipated [38] Question: Will interest rates impact capital expenditure plans? - Interest expense has increased, but there has been no need to adjust capital spending plans based on interest expense [40] Question: What is the status of government subsidies and BEAD? - The company is working with local state broadband offices to identify sustainable projects for the BEAD program [43] Question: What metrics will be provided for 2024 guidance? - The focus will be on key metrics such as EBITDA and CapEx, with no specific guidance on subscriber metrics at this time [49]