Atn International, Inc. · NASDAQ:ATNI
Atn International — Q2 2023 Earnings Presentation
29 slides from Atn International's earnings presentation, Jul 27, 2023
Slide 1: Investor Presentation Second Quarter 2023
Investor Presentation Nasdaq: ATNI Second Quarter 2023
Slide 2: Our mission is to digitally empower people and communities
Our mission is to digitally empower people and communities so that they can connect with the world and prosper 2
Slide 3: CEO Michael Prior quote on Q2 performance
“We capped the first half of 2023 with a strong second quarter, highlighted by robust subscriber growth and an accelerating conversion of subscribers to our high-speed network. Let me share three key takeaways from our Q2 performance: • First, we continue to execute well against our three-year plan,
Slide 4: Key Highlights in Q2 2023: Strong Subscriber Growth
Key Highlights in Q2 2023: Strong Subscriber Growth Glass & SteelTM and “First-to-Fiber” Growth Strategies Demonstrating Results » Grew broadband homes passed by 22% YoY to more than 746,000. » Broadband customers rose 6% YoY to more than 217,000. » +59% of broadband customers are now HSD broadband
Slide 5: Q2 2023 Operational Metrics
Q2 2023 Operational Metrics Key Performance Indicators Broadband Fiber Route Miles Broadband Homes Customers International Mobile Passed 217,100 Subscribers +11,500 746,800 HSD Customers 399,100 129,000 Notes • Data presented may differ from prior reported quarter to reflect more accurate data and/o
Slide 6: Q2 2023 Results: Total Revenues up 4% and Adjusted EBITDA up 10% YoY
Q2 2023 Results: Total Revenues up 4% and Adjusted EBITDA1 up 10% YoY Growth Drivers: Successful Execution of “Glass & SteelTM” and “First-to-Fiber” buildout strategies; strong subscriber growth across the international and domestic segments. Revenue by Segment International Telecom: $92M US Telecom
Slide 7: Q2 2023 Revenue, Operating Income, EBITDA, & Adjusted EBITDA
Q2 2023 Revenue, Operating Income, EBITDA2, & Adjusted EBITDA1 Total consolidated revenues $186M; Operating Income $2.4M; EBITDA1 $42M; Adjusted EBITDA2 $46M (Figures shown in millions) Revenue Operating Income EBITDA2 Adjusted EBITDA1 4% $186 $179 8% 10% $39 $42 $42 $46 42% $1.7 $2.4 Q2 2022 Q2 202
Slide 8: Q2 2023 Revenue & Adjusted EBITDA by Segment
Q2 2023 Revenue & Adjusted EBITDA1 by Segment in millions US Telecom International Telecom Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 4% 4% $94 $91 $92 $88 10% 7% $29 $23 $27 $21 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 8
Slide 9: First Half 2023 Revenue, EBITDA, & Adjusted EBITDA
First Half 2023 Revenue, EBITDA2, & Adjusted EBITDA1 in millions Revenue EBITDA2 Adjusted EBITDA1 6% $372 $352 8% $91 9% $84 $82 $75 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 9
Slide 10: Strong Balance Sheet and Fiber-driven Growth CapEx
Strong Balance Sheet and Fiber-driven Growth CapEx $67M $62M $39M Cash Position Undrawn Revolver Capacity Q2 ‘23 CapEx $482M Net Debt Ratio4 - 2.3x Debt Position • As of June 30, 2023 • Debt position and Net Debt Ratio excludes customer receivable credit facility. • See footnotes in appendix for add
Slide 11: Reiterating 2023 and 3-year Outlook
Reiterating 2023 and 3-year Outlook 2023 Guidance* » Adjusted EBITDA1 expected to be in the range of $183-$193 million for the full year with more of the growth coming in the second half of the year. » CapEx expected to be between $160-$170 million for the full year, primarily in network expansion a
Slide 12: Investment Summary
Investment Summary Our differentiated and compelling business model drives reliable financial results and lasting performance. Compelling Business Model Lasting Financial Performance i. Macro Trends Fueling Connectivity Demand High Recurring Revenues ii. Focused Market Strategy Durable Cash Flow
Slide 13: High-Level Overview
ATN international High-Level Overview i, 3ATN remetona
Slide 14: Providing Access to Opportunity and the Global Marketplace
Providing Access to Opportunity and the Global Marketplace United States: United States: International: Alaska Southwest Bermuda & Caribbean Providing high-speed data Bringing fiber into poorly Rapidly deploying fiber and services to schools and served communities, both other high-speed soluti
Slide 15: Proven Playbook & Focused Market Strategy
Proven Playbook & Focused Market Strategy “Right-Time” Entry » Enter under-built or under-served markets early in their growth cycles. First-Mover Advantage » Establish strong footholds, lasting customer relationships, and cutting-edge network infrastructure in our target markets. Streamlined Operat
Slide 16: Full Year Revenue, EBITDA, & Adjusted EBITDA
Full Year Revenue, EBITDA1, & Adjusted EBITDA2 in millions Revenue EBITDA1 Adjusted EBITDA2 20% $726 $156 28% $165 $603 63% $129 $95 2021 2022 2021 2022 2021 2022 16
Slide 17: Our vision is to bring social and economic prosperity
Our vision is to bring social and economic prosperity by providing people and communities with the best digital connectivity the world has to offer.
Slide 18: Thank You
Thank You IR Website: ir.atni.com IR Email: ir@atni.com 18
Slide 19: Appendix
Appendix ATN r international
Slide 20: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements » This press release contains forward-looking statements relating to, among other matters, the Company’s future financial performance, business goals and objectives, and results of operations, expectations regarding the transition of its US T
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, the Company has included EBITDA, Adjusted EBITDA, Net Debt and Net Debt Ratio in t
Slide 22: Footnotes
Footnotes 1. See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure. 2. See Table 5 for reconciliation of Operating Income to EBITDA, a non-GAAP measure. 3. For the Company’s three-year outlook for Adjusted EBITDA, Net Debt and Net Debt Ratio, the Company is not ab
Slide 23: Operating Results (in Thousands)
Operating Results (in Thousands) For Three Months Ended June 30, 2023 and 2022 2023 2022 2023 2022 2023 2022 2023 2022 International International US US Corporate and Corporate and Total Total Telecom Telecom Telecom Telecom Other* Other* ATN ATN Total Revenue: $ 91,981 $ 88,406 $ 94,460 $ 91,091 $
Slide 24: Operating Metrics
Operating Metrics *HSD is defined as download speeds of 100 Mbps or greater. HSD Broadband Customers are connected to our high-speed networks regardless of the speed of plan selected. Note: Data presented may differ from prior periods to reflect more accurate data and/or changes in calculation metho
Slide 25: Condensed Consolidated Balance Sheets and Statements of Operations
Table 1 ATN International, Inc. Unaudited Condensed Consolidated Balance Sheets Table 2 (in Thousands) ATN International, Inc. Unaudited Condensed Consolidated Statem ents of Operations June 30, December 31, (in Thousands, Except per Share Data) 2023 2022 Three Months Ended, Six Months Ended, Assets
Slide 26: Cash Flow Statements and Selected Segment Financial Information
Table 3 Table 4 ATN International, Inc. ATN International, Inc. Unaudited Condensed Consolidated Cash Flow Statements Selected Segment Financial Information (in Thousands) (In Thousands) For the three months ended June 30, 2023 is as follows: Six Months Ended June 30, 2023 2022 International Corpora
Slide 27: Selected Segment Financial Information (continued)
Table 4 (continued) Table 4 (continued) ATN International, Inc. ATN International, Inc. Selected Segment Financial Information Selected Segment Financial Information (In Thousands) (In Thousands) For the six months ended June 30, 2023 is as follows: For the three months ended June 30, 2022 is as fol
Slide 28: Reconciliation of Non-GAAP Measures
Table 4 (continued) ATN International, Inc. Table 5 Selected Segment Financial Information ATN International, Inc. (In Thousands) Reconciliation of Non-GAAP Measures For the six months ended June 30, 2022 is as follows: (In Thousands) International Corporate and Telecom US Telecom Other * Total For
Slide 29: Reconciliation of Non-GAAP Measures and Net Debt Ratio
Table 5 (continued) Table 6 For the six months ended June 30, 2023 is as follows: ATN International, Inc. International Corporate and Telecom US Telecom Other * Total Non GAAP Measure - Net Debt Ratio (in Thousands) Operating income (loss) $ 28,377 $ (6,737) $ (18,566) $ 3,074 Depreciation expense 2