Atn International, Inc. · NASDAQ:ATNI
Atn International — Q3 2022 Earnings Presentation
30 slides from Atn International's earnings presentation, Oct 27, 2022
Slide 1: Investor Presentation Third Quarter 2022
Investor Presentation Third Quarter 2022 The community of Akiachak will be served by the Alaska FiberOptic Project Photo: Calista Corporation Nasdaq: ATNI 1
Slide 2: Forward-Looking Statements & Non-GAAP Financial Information
Forward-Looking Statements & Non-GAAP Financial Information This presentation may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are or may be forward-looking statements.
Slide 3: 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
Slide 4: CEO quote on third quarter 2022
“The third quarter of 2022 was another strong quarter for ATN – one where we served our customers well, advanced our strategic broadband buildouts, and made excellent progress toward our three-year growth objectives.” Michael Prior, CEO 4
Slide 5: Key Highlights in 3Q22
Key Highlights in 3Q22 High-Speed Network Growth » Grew homes passed by broadband networks by 9% YoY to 613,600. » Added 29,000 new homes passed by fiber or other higher-speed solutions. » 54% of broadband subscribers connected to fiber or other higher-speed networks, for an increase of 13% YoY. Mob
Slide 6: 3Q22 Operational Metrics
3Q22 Operational Metrics Broadband Homes Broadband Mobile Fiber Connected Owned Towers 2 Passed Customers Fiber Route Miles Subscribers Towers 1 613,600 205,200 9,756 404 356,000 404 Passed by HSD 3: 36% HSD 3 Capable: 54% Data presented may differ from prior reported quarter to reflect more accurat
Slide 7: 3Q22 Results: Total Revenues up 9% and Adjusted EBITDA up by 14% YoY
3Q22 Results: Total Revenues up 9% and Adjusted EBITDA up by 14% YoY Growth Drivers: Strong operating performance in Alaska, fiber & broadband customer additions, mobile subscriber growth, network upgrades & expansion International Segment: $90M U.S. Segment: $92M Revenue by Segment Substantial co
Slide 8: Macro Climate
Macro Climate We remain confident in our market-leading positions as well as our overall business prospects. Differentiated model and strategy. » Essential, high-demand communications services to rural and remote markets. » High recurring revenues, durable cash flows, and lasting customer relationsh
Slide 9: Twin-Pillar Growth Strategy Underpins Three Year Plan
Twin-Pillar Growth Strategy Underpins Three Year Plan Glass and SteelTM » Build and own core digital infrastructure, including fiber, towers, and data network capacity. “First-to-Fiber” » Establish first-mover advantage in bringing fiber to a community, business, residence or tower. Strategy will pr
Slide 10: 3Q22 Revenue, EBITDA, & Adjusted EBITDA
3Q22 Revenue, EBITDA, & Adjusted EBITDA in millions Revenue 9% $182 $167 EBITDA1 Adjusted EBITDA2 14% 21% $38 $42 $31 $37 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 • YoY revenue, EBITDA and adjusted EBITDA increases mainly driven by the performance of Alaska Communications as well as the addition of a full quar
Slide 11: 3Q22 Revenue & Adjusted EBITDA by Segment
3Q22 Revenue & Adjusted EBITDA by Segment in millions US Telecom4 International Telecom3 Revenue Revenue 13% $92 6% $90 $81 $85 Adjusted EBITDA2 Adjusted EBITDA2 34% 4% $27 $28 $22 $16 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 3Q21 3Q22 • See footnote explanations in Appendix 11
Slide 12: Strong Balance Sheet, Ample Debt Capacity, and Targeted Capex
Strong Balance Sheet, Ample Debt Capacity, and Targeted Capex $78M $103M $39M Cash Position Undrawn Revolver Capacity 3Q22 Capex $356M Net Leverage < 2x Debt Position • As of September 30, 2022 • Debt position excludes customer receivable credit facility. • See footnotes in appendix for additional e
Slide 13: Outlook
Outlook 2022 Guidance* » Adjusted EBITDA6 in the range of $165 - $170 million for the full year » Capex between $150-$160 million for the full year • Largest expenditures to be used for network expansion and upgrades, net of reimbursed amounts, which are expected to drive subscriber and revenue grow
Slide 14: 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 15: High-Level Overview
international High-Level Overview ‘ATN
Slide 16: 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 17: 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 18: 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 19: Thank You
Thank You IR Website: ir.atni.com IR Email: ir@atni.com 19
Slide 20: Appendix
Appendix 2020
Slide 21: Footnotes
Footnotes 1. See Table 5 in for reconciliation of Operating Income to EBITDA, a non-GAAP measure. 2. See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure. 3. International Telecom revenues are generated by delivery of a broad range of communications and managed I
Slide 22: Operating Results (in Thousands)
Operating Results (in Thousands) For Three Months Ended September 30, 2022 and 2021 2022 2021 2022 2021 2022 2021 2022 2021 International International US US Total Total Telecom Telecom Telecom Telecom All Other* All Other* ATN ATN Revenue $ 90,007 $ 85,306 $ 92,206 $ 81,454 $ - $ - $ 182,213 $ 166,
Slide 23: Condensed Consolidated Balance Sheets and Statements of Operations
Table 1 Table 2 ATN International, Inc. ATN International, Inc. Unaudited Condensed Consolidated Balance Sheets Unaudited Condensed Consolidated Statem ents of Operations (in Thousands) (in Thousands, Except per Share Data) September 30, December 31, Three Months Ended Nine Months Ended 2022 2021 Se
Slide 24: Condensed Consolidated Cash Flow Statement
Table 3 ATN International, Inc. Unaudited Condensed Consolidated Cash Flow Statement (in Thousands) Nine Months Ended September 30, 2022 2021 Net income (loss) $ (5,037) $ 3,089 Depreciation 100,421 68,693 Amortization of intangibles from acquisitions 9,744 4,324 Provision for doubtful accounts 4,96
Slide 25: Selected Segment Financial Information
Table 4 ATN International, Inc. Selected Segment Financial Information (In Thousands) ATN International, Inc. For the three months ended Septemb er 30, 2022 is as follows: Selected Segment Financial Information (In Thousands) International Renewable Corporate and Telecom US Telecom Energy Other * To
Slide 26: Selected Segment Financial Information (Nine Months)
ATN International, Inc. ATN International, Inc. Selected Segment Financial Information Selected Segment Financial Information (In Thousands) (In Thousands) For the nine months ended Septemb er 30, 2022 is as follows: For the nine months ended Septemb er 30, 2021 is as follows: International Renewabl
Slide 27: Selected Segment Financial and Operational Information
ATN International, Inc. ATN International, Inc. Selected Segment Financial Information Selected Segment Operational Information (In Thousands) at Decemb er 31, 2021 As of As of As of As of December 31, March 31, June 30, September 30, International Renewable Corporate and Telecom US Telecom Energy O
Slide 28: Reconciliation of Non-GAAP Measures
Table 5 ATN International, Inc. Reconciliation of Non-GAAP Measures (In Thousands) For the three months ended Septemb er 30, 2022 is as follows: For the nine months ended Septemb er 30, 2022 is as follows: International Renewable Corporate and International Renewable Corporate and Telecom US Telecom
Slide 29: Non GAAP Measure - Net Debt Ratio
Table 6 ATN International, Inc. Non GAAP Measure - Net Debt Ratio (in Thousands, Except per Share Data) September 30, December 31, 2022 2021 Current portion of long-term debt * $ 3,786 $ 4,665 Long-term debt, net of current portion * 351,866 327,111 Total debt $ 355,652 $ 331,776 Less: Cash and cash
Slide 30: Our growth strategy complements and enhances our differentiated approach
“Our growth strategy complements and enhances our differentiated approach, focused on entering and servicing rural and remote markets with high connectivity demand. These markets typically are characterized by lower socio-economic demographics or harsh natural environments, creating a critical need