Atn International, Inc. · NASDAQ:ATNI
Atn International — Q2 2024 Earnings Presentation
45 slides from Atn International's earnings presentation, Jul 25, 2024
Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call July 25, 2024 1
Slide 2: A Message from ATN's Leadership
Q2 FY 2024 A Message from ATN’s Leadership “We are making progress in our efforts to leverage our First-to-Fiber and Glass & Steel investments to deliver topline growth, improve operating efficiency and deliver value to our shareholders and customers over the long term.” - Brad Martin, Chief Executi
Slide 3: Key Performance Indicators (Q2 FY 2024)
Key Performance Indicators (Q2 FY 2024) Our Strategy is Yielding Growth Across Key Metrics & Favorably Impacting Mix Fiber Network High-Speed Data Mobile Network ~404k ~397k High-Speed Data International Mobile Broadband Homes Passed Subscribers +22% YOY Flat YOY >11,700 ~141k ~58k ~339k Fiber High-
Slide 4: Financial Highlights and Drivers
Financial Highlights and Drivers Q2 Total Revenue down 2% and Adjusted EBITDA1 up 7% International Telecom +4% Revenue and +14% Adj. EBITDA2 Strong high speed data subscriber growth (+9% YoY) Q2 ‘24 Revenue Q2 ‘24 Adj. EBITDA drove increased fixed broadband revenues (+4% YoY) International busin
Slide 5: Quarterly Financial Summary
Quarterly Financial Summary Q2 2024 Revenue, Operating Income, EBITDA2, & Adjusted EBITDA1 Revenue Operating Income EBITDA2 Adjusted EBITDA1 -2% $186 $183 +48% $62 +6% $24 $49 $46 $42 $2 Q2 2023 Q2 2024 Q2 2023 Q2 2024* Q2 2023 Q2 2024 Q2 2023 Q2 2024 (Figures shown in millions) 5 *Operating Income
Slide 6: Year-to-date Financial Summary
Year-to-date Financial Summary H1 2024 Revenue, Operating Income, EBITDA2, & Adjusted EBITDA1 Revenue Operating Income EBITDA2 Adjusted EBITDA1 -1% +2% $372 $370 $91 $92 $29 +25% $103 $82 $3 H1 2023 H1 2024 H1 2023 H1 2024* H1 2023 H1 2024 H1 2023 H1 2024 (Figures shown in millions) 6 *Operating Inc
Slide 7: US Telecom and International Telecom Segment Financials
US Telecom and International Telecom Segment Financials Q2 2024 Revenue & Adjusted EBITDA1 US Telecom International Telecom Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 -7% -4% $94 $23 $88 $22 +4% +14% $33 $92 $95 $29 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 (Figures show
Slide 8: Balance Sheet Update
Balance Sheet Update Strong Balance Sheet Supports Capital Allocation Priorities We are well-capitalized and committed to managing debt levels and expanding operating cash flow $73M $146M $62M Cash Position Undrawn Revolver Capacity 1H ’24 CapEx $541M Net Debt Ratio4 - 2.45x Debt Position • As of Ju
Slide 9: Reaffirming 2024 Outlook
Outlook Reaffirming 2024 Outlook Full Year 2024 Guidance Current Revenue $730M to $750M Adjusted EBITDA1 $190M to $200M CapEx $100M to $110M Net Debt Ratio3 2.25x to 2.50x exiting 2024 Note: For the Company’s full year 2024 outlook dated 7/24/24 for Adjusted EBITDA, Net Debt and Net Debt Ratio, the
Slide 10: 2024 Strategic Priorities
Key Tenants of ATN’s Plan 2024 Strategic Priorities Continue to convert high-value business opportunities by leveraging ATN’s 1 expanded & upgraded network, localized operations and trusted relationships Grow high-speed data subscriber base and further expand ATN’s fiber footprint 2 with targeted pr
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: Strong Core Capabilities
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: Our Investment Strategy: Capex and Grants
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 Highlights
Balance Sheet Highlights Balance Sheet Provides Flexibility to Execute our Strategy Liquidity* Net Debt Leverage Ratio4 Uses of Capital • Capital investments • Paying down debt Undrawn • Supporting dividend revolver $146M capacity • Share repurchases 2.38x 2.45x* 2.10x 2.25x to Cash & $73M 2.5x Exit
Slide 20: 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 steady, long-term net debt leverage over
Slide 21: Thank You
Thank You IR Website: ir.atni.com IR Email: ir@atni.com 21
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 full year 2024 outlook dated 7/24/24 for Adjusted EBITDA, Net Debt and Net Debt Ratio, the
Slide 23: Operating Results (in Thousands)
Operating Results (in Thousands) For Three Months Ended June 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: $ 95,357 $ 91,981 $ 87,924 $ 94,460 $
Slide 24: Operating Metrics
Operating Metrics Operating Metrics 2024 2024 2023 2023 2023 Q2 2024 Q2 Q1 Q4 Q3 Q2 vs. Q2 2023 High-Speed Data* Broadband Homes Passed 403,500 386,300 367,200 333,500 330,500 22% High-Speed Data* Broadband Customers 141,000 137,700 135,900 132,900 129,100 9% Broadband Homes Passed 803,300 789,700 7
Slide 25: Q2 2024 Financial Tables
Q2 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) June 30, December 31, Three Months Ended, Six Month
Slide 26: Q2 2024 Financial Tables (Cont.)
Q2 2024 Financial Tables (Cont.) Table 3 Table 4 ATN International, Inc. ATN International, Inc. Unaudited Condensed Consolidated Cash Flow Statements Selected Segment Financial Information (in Thousands) (In Thousands) Six Months Ended June 30, For the three months ended June 30, 2024 is as follows
Slide 27: Q2 2024 Financial Tables (Cont.)
Q2 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 June 30, 2023 is as follows: For the six mon
Slide 28: Q2 2024 Financial Tables (Cont.)
Q2 2024 Financial Tables (Cont.) Table 4 (continued) ATN International, Inc. Selected Segment Financial Information Table 5 (In Thousands) ATN International, Inc. For the six months ended June 30, 2023 is as follows: Reconciliation of Non-GAAP Measures International Corporate and (In Thousands) Tele
Slide 29: Q2 2024 Financial Tables (Cont.)
Q2 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 (in Thousands) For the six months ended June 30, 2024 is as follows: International Corporate and Telecom U
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: 2022 and 2021 Financial Tables (Cont.)
2022 and 2021 Financial Tables (Cont.) Table 2 Table 1 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 2022 and 2021 Financial Tables (Cont.)
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 45: IR Website and Email
IR Website: ir.atni.com IR Email: ir@atni.com 45