Atn International, Inc. · NASDAQ:ATNI
Atn International — Q3 2024 Earnings Presentation
43 slides from Atn International's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call October 30, 2024 1
Slide 2: Safe Harbor and Non-GAAP Financial Measures Definition
Q3 FY 2024 Safe Harbor and Non-GAAP Financial Measures Definition Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements relating to, among other matters, the Company’s future financial performance, business goals and objectives, and results o
Slide 3: A Message from ATN's Leadership
Q3 FY 2024 A Message from ATN’s Leadership “Our near-term performance continues to be a tale of two segments – with progress in the International segment and near-term headwinds persisting in our US operations. We are executing strategic actions to align our cost structure with current revenue level
Slide 4: Key Performance Indicators (Q3 FY 2024)
Key Performance Indicators (Q3 FY 2024) Strategy is Yielding YoY Increases Across Key Metrics & Favorable Mix Shifts Fiber Network High-Speed Data Mobile Network ~400k ~395k High-Speed Data International Mobile Broadband Homes Passed Subscribers +20% YOY -1% YOY >11,900 ~141k ~59k ~336k Fiber High-S
Slide 5: Financial Highlights and Drivers
Financial Highlights and Drivers Q3 Total Revenue and Adjusted EBITDA1 International Telecom Flat Revenue and +17% Adj. EBITDA1 Fixed revenue increased (+3%) with growth in business Q3 ‘24 Revenue Q3 ‘24 Adj. EBITDA1 and consumer; total international mobility revenue declined (-4%) as business mob
Slide 6: Quarterly Financial Summary
Quarterly Financial Summary Total Revenue and Adjusted EBITDA1 Q3 Q3 YTD YTD Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 -3% Flat -7% -5% $563 $549 $138 $138 $191 $48 $46 $178 Q3 2023 Q3 2024 Q3 2023 Q3 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 (Figures shown in millions) 6 1. See Table 5 for r
Slide 7: US Telecom and International Telecom Segment Financials
US Telecom and International Telecom Segment Financials Q3 2024 Revenue & Adjusted EBITDA1 US Telecom International Telecom Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 Flat -34% -13% $94 $94 +17% $32 $27 $28 $94 $84 $18 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 (Figures s
Slide 8: Balance Sheet Update
Balance Sheet Update Strong Balance Sheet Supports Capital Allocation Priorities We are well-capitalized and committed to reducing Capex, managing debt levels and expanding operating cash flow $117M $197M $86M Cash Position Undrawn Revolver Capacity2 YTD ’24 CapEx $569M Net Debt Ratio - 2.39x Debt P
Slide 9: Updating Full Year 2024 Guidance
Outlook Updating Full Year 2024 Guidance Previous Current Revenue $730M to $750M $720M to $730M Adjusted EBITDA* $190M to $200M $182M to $188M Capital Expenditures $100M to $110M $100M to $110M 2.25x to 2.50x 2.3x to 2.6x Net Debt Ratio* exiting 2024 exiting 2024 *For the Company’s full year 2024 ou
Slide 10: 2024 Strategic Priorities
Key Tenants of ATN’s Plan 2024 Strategic Priorities International: Continue to convert high-value business opportunities leveraging 1 ATN’s expanded & upgraded network, localized operations & trusted relationships Domestic: Refocus efforts on growing business and carrier customer revenues, 2 strengt
Slide 11: About ATN International
About ATN International 11
Slide 12: Our Mission
Our Mission To digitally empower people and communities so that they can connect with the world and prosper 12
Slide 13: ATN At-a-Glance
ATN At-a-Glance Leading Provider of Critical Communications Infrastructure & Services in Rural and Remote Markets $762M $189M 2,300 ~32% 35+ y e a r s FY23 FY23 Adjusted Employees Insider Operating Revenue EBITDA1 Ownership Experience 49% I n t e r n a t i o n a l 51% D o m e s t i c Mobility Bermud
Slide 14: International Telecom Segment At-a-Glance
International Telecom Segment At-a-Glance Serving Bermuda, the Cayman Islands, Guyana and the US Virgin Islands Revenue Trends Revenue Trends Revenue By Product Offerings Mobility $356 $371 Mobility $343 Consumer & Business Broadband Fixed Wireline Voice and Video $371M Carrier Services 2023 R
Slide 15: US Telecom Segment At-a-Glance
US Telecom Segment At-a-Glance Serving Alaska and Southwestern United States Revenue Trends Revenue Trends Revenue By Product Offerings $391 Wholesale & FTT Backhaul $370 Mobility Consumer & Enterprise Broadband $259 Fixed Carrier Managed Service $391M Carrier Services 2023 Revenue Strategic P
Slide 16: Driving Sustainable Competitive Advantages
Strong Core Capabilities Driving Sustainable Competitive Advantages Targeting Underbuilt Deeply Localized Aligned with Market Segments Operations Growth Trends Focus on market segments Strong local management • Global digital transformation with high unmet demand enhances close relationships • Growi
Slide 17: Our Investment Strategy
Our Investment Strategy Leveraging Enhanced Network Reach & Capabilities to Deliver Value 3-Year Investment Strategy (2022 to 2024) International: • Expand fiber-rich digital infrastructure in growth First-to-Fiber markets (Cayman & Guyana) Establish first-mover • Strengthen ATN’s network & services
Slide 18: Using a Combination of Capex and Grants to Support Growth
Our Investment Strategy Using a Combination of Capex and Grants to Support Growth Strategic Capex Our Approach: 3-year investment cycle Scaling back capex investments in 2024 $160 $163 – final year of 3-year investment cycle $100 to $110* Continuing to focus on monetizing $96 l upgraded network
Slide 19: Balance Sheet Provides Flexibility to Execute our Strategy
Balance Sheet Highlights Balance Sheet Provides Flexibility to Execute our Strategy Liquidity Net Debt Leverage Ratio Uses of Capital • Capital investments • Paying down debt Undrawn • Supporting dividend revolver $197M capacity • Share repurchases 2.38x 2.39x 2.10x 2.3x to Cash & $117M 2.6x equival
Slide 20: Committed to a Balanced Approach to Capital Allocation
Capital Allocation Committed to a Balanced Approach to Capital Allocation 1 2 3 Strategic De-Lever the Return Capital Capex Spending Balance Sheet To Shareholders • Focused on investments • Objective to return to ~2.0x • Since the start of 2022, resulting in recurring cash flows net debt leverage ov
Slide 21: Q3 2024 Operating Results (in Thousands)
Q3 2024 Operating Results (in Thousands) For Three Months Ended September 30, 2024 and 2023 2024 2023 2024 2023 2024 2023 2024 2023 International International US US Corporate and Corporate and Total Total Telecom Telecom Telecom Telecom Other* Other* ATN ATN Total Revenue: $ 94,281 $ 93,878 $ 84,17
Slide 22: Q3 2024 Operating Metrics
Q3 2024 Operating Metrics Operating Metrics 2024 2024 2024 2023 2023 Q3 2024 Q3 Q2 Q1 Q4 Q3 vs. Q3 2023 High-Speed Data* Broadband Homes Passed 399,500 396,100 386,300 367,200 333,500 20% High-Speed Data* Broadband Customers 141,500 142,000 138,700 135,900 132,900 6% Broadband Homes Passed 798,400 8
Slide 23: Q3 2024 Financial Tables
Q3 2024 Financial Tables 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) Three Months Ended, Nine Months Ended, September 30
Slide 24: Financial Tables (Cont.)
Financial Tables (Cont.) Table 4 Table 3 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 Septemb er 30, 2024 is as follows: Nine Months Ended Septembe
Slide 25: Q3 2024 Financial Tables (Cont.)
Q3 2024 Financial Tables (Cont.) 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 three months ended Septemb er 30, 2023 is as follows: For the n
Slide 26: Q3 2024 Financial Tables (Cont.)
Q3 2024 Financial Tables (Cont.) Table 4 (continued) ATN International, Inc. Selected Segment Financial Information Table 5 (In Thousands) ATN International, Inc. For the nine months ended Septemb er 30, 2023 is as follows: Reconciliation of Non-GAAP Measures (In Thousands) International Corporate a
Slide 27: Q3 2024 Financial Tables (Cont.)
Q3 2024 Financial Tables (Cont.) Table 5 (continued) Table 6 ATN International, Inc. Reconciliation of Non-GAAP Measures ATN International, Inc. (In Thousands) Non GAAP Measure - Net Debt Ratio For the nine months ended Septemb er 30, 2024 is as follows: (in Thousands) International Corporate and Te
Slide 28: 2023 and 2022 Financial Tables
2023 and 2022 Financial Tables For Three Months Ended December 31, 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: $ 94,467 $ 90,384 $ 104,499 $ 101,63
Slide 29: 2023 and 2022 Financial Tables (Cont.)
2023 and 2022 Financial Tables (Cont.) Operating Metrics 2023 2023 2023 2023 2022 Q4 2023 Q4 Q3 Q2 Q1 Q4 vs. Q4 2022 Broadband Homes Passed 768,900 746,600 746,800 736,300 728,900 5% Broadband Homes Passed by HSD* 367,200 333,500 331,000 301,600 275,100 33% Broadband Customers 214,400 213,900 215,50
Slide 30: 2023 and 2022 Financial Tables (Cont.)
2023 and 2022 Financial Tables (Cont.) Table 2 Table 1 ATN International, Inc. ATN International, Inc. Unaudited Condensed Consolidated Statem ents of Operations Unaudited Condensed Consolidated Balance Sheets (in Thousands, Except per Share Data) (in Thousands) Three Months Ended, Year Ended, Decem
Slide 31: 2023 and 2022 Financial Tables (Cont.)
2023 and 2022 Financial Tables (Cont.) Table 4 Table 3 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 Decemb er 31, 2023 is as follows: Year Ended De
Slide 32: 2023 and 2022 Financial Tables (Cont.)
2023 and 2022 Financial Tables (Cont.) 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 year ended Decemb er 31, 2023 is as follows: For the thre
Slide 33: 2023 and 2022 Financial Tables (Cont.)
2023 and 2022 Financial Tables (Cont.) Table 4 (continued) ATN International, Inc. Selected Segment Financial Information Table 5 (In Thousands) ATN International, Inc. For the year ended Decemb er 31, 2022 is as follows: Reconciliation of Non-GAAP Measures (In Thousands) International Corporate and
Slide 34: 2023 and 2022 Financial Tables (Cont.)
2023 and 2022 Financial Tables (Cont.) Table 5 (continued) Table 6 ATN International, Inc. ATN International, Inc. Reconciliation of Non-GAAP Measures Non GAAP Measure - Net Debt Ratio (In Thousands) (in Thousands) For the year ended Decemb er 31, 2023 is as follows: International Corporate and Tele
Slide 35: 2022 and 2021 Financial Tables
2022 and 2021 Financial Tables For Three Months Ended December 31, 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 $ 90,384 $ 87,518 $ 101,631 $ 100,053 $ - $ - $ 192,015 $ 187,5
Slide 36: 2022 and 2021 Financial Tables (Cont.)
2022 and 2021 Financial Tables (Cont.) 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) Three Months Ended Year Ended Decembe
Slide 37: 2022 and 2021 Financial Tables (Cont.)
2022 and 2021 Financial Tables (Cont.) Table 3 ATN International, Inc. Unaudited Condensed Consolidated Cash Flow Statements (in Thousands) Year Ended December 31, 2022 2021 Net Loss $ (7,583) $ (20,809) Depreciation 135,137 102,731 Amortization of intangibles from acquisitions 13,016 7,775 Provisio
Slide 38: 2022 and 2021 Financial Tables (Cont.)
2022 and 2021 Financial Tables (Cont.) Table 4 ATN International, Inc. Selected Segment Financial Information ATN International, Inc. (In Thousands) Selected Segment Financial Information For the three months ended Decemb er 31, 2022 is as follows: (In Thousands) For the three months ended Decemb er
Slide 39: 2022 and 2021 Financial Tables (Cont.)
2022 and 2021 Financial Tables (Cont.) ATN International, Inc. Selected Segment Financial Information ATN International, Inc. (In Thousands) Selected Segment Financial Information (In Thousands) For the year ended Decemb er 31, 2021 is as follows: For the year ended Decemb er 31, 2022 is as follows:
Slide 40: 2022 and 2021 Financial Tables (Cont.)
2022 and 2021 Financial Tables (Cont.) 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 As of December 31, March 31, June 30, September 30, December 31, Interna
Slide 41: 2022 and 2021 Financial Tables (Cont.)
2022 and 2021 Financial Tables (Cont.) Table 5 ATN International, Inc. For the year ended Decemb er 31, 2022 is as follows: Reconciliation of Non-GAAP Measures (In Thousands) International Renewable Corporate and For the three months ended Decemb er 31, 2022 is as follows: Telecom US Telecom Energy
Slide 42: Non GAAP Measure - Net Debt Ratio
2022 and 2021 Financial Tables (Cont.) Table 6 ATN International, Inc. Non GAAP Measure - Net Debt Ratio (in Thousands, Except per Share Data) December 31, December 31, 2022 2021 Current portion of long-term debt * $ 6,172 $ 4,665 Long-term debt, net of current portion * 415,727 327,111 Total debt $
Slide 43: IR Website: ir.atni.com, IR Email: ir@atni.com
IR Website: ir.atni.com IR Email: ir@atni.com 43