Atn International, Inc. · NASDAQ:ATNI
Atn International — Q4 2023 Earnings Presentation
26 slides from Atn International's earnings presentation, Feb 22, 2024
Slide 1: Q4 2023 Earnings Call
Nasdaq: ATNI Q4 2023 Earnings Call February 21, 2024
Slide 2: Our Mission
Our Mission: To digitally empower people and communities so that they can connect with the world and prosper
Slide 3: ATN At-A-Glance
ATN At-A-Glance ~ $1.1 Billion FY23 Revenue: F Y 2 3 Ad j u s t e d Enterprise Value $762M E B I T D A 1 : $189M 2,400 ~32% 35+ years Leading Provider Employees Insider Ownership Operating Experience of Critical Communications Infrastructure & Services in Rural and Remote I N T E R N AT I O N AL ( ~
Slide 4: Our Core Capabilities Drive Sustainable Competitive Advantages
Our Core Capabilities Drive Sustainable Competitive Advantages Targeting Underbuilt Deeply Localized Aligned with Market Segments Operations Growth Trends Focus on market segments • Global digital transformation Strong local management with high unmet demand for • Growing need for reliable connectiv
Slide 5: Positioning ATN to Accelerate Free Cash Flow Generation
Completing 3-Year Investment Plan to Expand High-Speed Network Reach: Positioning ATN to Accelerate Free Cash Flow Generation Glass & SteelTM Strategy Build & own advanced digital infrastructure. • Adapt to meet customer connectivity needs 3-Year • Capitalize on available government programs Buildin
Slide 6: Q4 and Annual 2023 Earnings Results
Q4 and Annual 2023 Earnings Results
Slide 7: A Message from CEO Brad Martin
A Message from CEO Brad Martin “This is a significant time in ATN’s journey. We have entered the third and final year of our strategic investment plan to expand the reach and capability of our high-speed networks and to bring more high-speed data services to remote and underserved consumers and busi
Slide 8: Strong FY23 Positions ATN to Reap Full Benefits of Network Investments
Strong FY23 Positions ATN to Reap Full Benefits of Network Investments Significant progress advancing strategic milestones FY2023 • Advancing First-to-Fiber and Glass & Steel investment strategies Financial Highlights • Transitioning legacy revenues to carrier managed services • Expanding U.S. busin
Slide 9: Our Investment Strategy is Yielding Growth Across Key Metrics
Our Investment Strategy is Yielding Growth Across Key Metrics Q4 2023 Operational Metrics Key Performance Indicators >11,650 >768k >214k >135k >408k Fiber Broadband Broadband HSD International Mobile Route Miles Homes Passed Customers Customers Subscribers +11% YOY +5% YOY +2% YOY +20% YOY 8% YOY No
Slide 10: Q4 Total Revenues up 4% and Adjusted EBITDA up 13% YoY
Q4 Total Revenues up 4% and Adjusted EBITDA1 up 13% YoY Growth Drivers: International Telecom: $94M Strong HSD subscriber growth (+20% YOY) driving • Successful Execution of “Glass & SteelTM” and increased broadband revenues “First-to-Fiber” buildout strategies Strong 8% mobile subscriber growth
Slide 11: Q4 Revenue, Operating Income, EBITDA, & Adjusted EBITDA
Q4 Revenue, Operating Income, EBITDA2, & Adjusted EBITDA1 Revenue growth and Adjusted EBITDA increase driven by strong subscriber growth across both segments (Figures shown in millions) Revenue Operating Income EBITDA2 Adjusted EBITDA1 +4% $199 $192 -4% +13% $43 $41 $51 $45 -30% $4.7 $3.3 Q4 2022 Q4
Slide 12: Q4 Revenue & Adjusted EBITDA by Segment
Q4 Revenue & Adjusted EBITDA1 by Segment (Figures shown in millions) US Telecom International Telecom Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 +3% +5% $102 $104 $94 $90 +6% +20% $31 $27 $29 $23 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 12
Slide 13: Full Year Revenue, Operating Income, EBITDA, & Adjusted EBITDA
Full Year Revenue, Operating Income, EBITDA2, & Adjusted EBITDA1 Strong broad-based performance supported by network expansion, subscriber growth and margin improvement initiatives (Figures shown in millions) Revenue Operating Income EBITDA2 Adjusted EBITDA1 +5% $762 $726 +10% $ 189 $173 +7% $167 $1
Slide 14: Strong Balance Sheet Supports Fiber-driven Growth CapEx
Strong Balance Sheet Supports Fiber-driven Growth CapEx We are well-capitalized and committed to managing debt levels and expanding operating cash flow $37M $65M $136M Undrawn Revolver Q4 ’23 CapEx Cash Position Capacity $163M $517M Net Debt Ratio4 - 2.4x FY23 CapEx Debt Position • As of December 31
Slide 15: 2024 Strategic Priorities
2024 Strategic Priorities Positioning ATN to reap long-term benefits of investments & deliver sustainable shareholder value Complete the final stage of 3-year investment strategy for growing 1 high-speed network subscriber base and expanding fiber footprint Leverage upgraded network footprint with a
Slide 16: ATN International – 2024 Outlook
ATN International – 2024 Outlook Updated 2/21/2024 “As we enter the final year of our three- Full Year 2024 Guidance3 year investment cycle, we are taking actions to position ATN to realize the full Revenue $750M to $770M benefits of our investments going forward. Adjusted EBITDA1 $200M to $208M Thi
Slide 17: Poised to Accelerate Cash Flow as we Complete 3-Year Investment Strategy
Poised to Accelerate Cash Flow as we Complete 3-Year Investment Strategy Differentiated and Compelling Reliable and Lasting Business Model Financial Performance i. Macro Trends Fueling Connectivity Demand High Recurring Revenues ii. Focused Market Strategy Expanding Cash Flows iii. Providing Ess
Slide 18: Thank You
Thank You IR Website: ir.atni.com IR Email: ir@atni.com 18
Slide 19: 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 2/21/24 for Adjusted EBITDA, Net Debt and Net Debt Ratio, the
Slide 20: Operating Results (in Thousands)
Operating Results (in Thousands) 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,
Slide 21: Operating Metrics
Operating Metrics 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 214,400 213,900 215,500 214,000 210,500 2%
Slide 22: Unaudited Condensed Consolidated Balance Sheets and Statements of Operations
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, December 31, December 31, December 31, Decem
Slide 23: Cash Flow Statements and Selected Segment Financial Information
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 December 31, 2023 2022 International Corp
Slide 24: 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 year ended Decemb er 31, 2023 is as follows: For the three months ended Decemb er 31, 2022 is as
Slide 25: Reconciliation of Non-GAAP Measures
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 Telecom US Telecom Other * Total For t
Slide 26: Reconciliation of Non-GAAP Measures (continued) and Net Debt Ratio
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 Telecom US Telecom Other * Total December 3