Atn International, Inc. · NASDAQ:ATNI
Atn International — Q3 2023 Earnings Presentation
29 slides from Atn International's earnings presentation, Oct 26, 2023
Slide 1: Investor Presentation Third Quarter 2023
Investor Presentation Nasdaq: ATNI Third Quarter 2023 October 2023
Slide 2: ATN International Vision, Mission & Core Values
ATN International Vision, Mission & Core Values VISION Our vision looks to a future where all people and communities - regardless of geographic or economic circumstance - will have access to the resources and connections of the global data ecosystem MISSION Our mission is to utilize our technical an
Slide 3: CEO Commentary on Third-Quarter Performance
“We’re pleased with our third-quarter performance, as we continued to rapidly convert customers to our high-speed network and work toward completing our three-year plan at the end of 2024. Let me share three key takeaways from our performance: First, we continue to execute well on all fronts, delive
Slide 4: Key Highlights in Q3 2023: Strong Subscriber Growth
Key Highlights in Q3 2023: Strong Subscriber Growth Glass & SteelTM and “First-to-Fiber” Growth Strategies Demonstrating Results » Grew broadband homes passed by HSD 52% YoY to 333,500. » HSD broadband customers rose 20% YoY to nearly 133,000. » 62% of broadband customers are now HSD broadband custo
Slide 5: Q3 2023 Operational Metrics
Q3 2023 Operational Metrics Key Performance Indicators >11,500 >214k >132k >402k >746k Broadband HSD International Mobile Fiber Route Miles Broadband Homes Subscribers Passed Customers Customers Notes • Data presented may differ from prior reported quarter to reflect more accurate data and/or change
Slide 6: Q3 2023 Results: Total Revenues up 5% and Adjusted EBITDA up 10% YoY
Q3 2023 Results: Total Revenues up 5% and Adjusted EBITDA1 up 10% YoY Growth Drivers: Successful Execution of “Glass & SteelTM” and “First-to-Fiber” buildout strategies; executing well with steady subscriber adds across the international and domestic segments Revenue by Segment International Telecom
Slide 7: Q3 2023 Revenue, Operating Income, EBITDA, & Adjusted EBITDA
Q3 2023 Revenue, Operating Income, EBITDA2, & Adjusted EBITDA1 Total consolidated revenues $191M; Operating Income $7M; EBITDA2 $44M; Adjusted EBITDA1 $48M (Figures shown in millions) Revenue Operating Income EBITDA2 Adjusted EBITDA1 +5% $191 $182 +17% +10% $48 $44 $38 $44 +375% $7 $1 Q3 2022 Q3 202
Slide 8: Q3 2023 Revenue & Adjusted EBITDA by Segment
Q3 2023 Revenue & Adjusted EBITDA1 by Segment in millions US Telecom International Telecom Revenue Adjusted EBITDA1 Revenue Adjusted EBITDA1 +5% $97 $92 +4% $94 $90 +22% $27 -1% $28 $28 $22 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 8
Slide 9: Results Through September – Revenue, EBITDA, & Adjusted EBITDA
Results Through September 30 – Revenue, EBITDA2, & Adjusted EBITDA1 in millions Revenue EBITDA2 Adjusted EBITDA1 +6% $563 $534 +9% $138 $127 +11% $126 $113 Through Q3 2022 Through Q3 2023 Through Q3 2022 Through Q3 2023 Through Q3 2022 Through Q3 2023 9
Slide 10: Strong Balance Sheet and Fiber-driven Growth CapEx
Strong Balance Sheet and Fiber-driven Growth CapEx $73M $147M $37M Cash Position Undrawn Revolver Capacity Q3 ‘23 CapEx $498M Net Debt Ratio4 - 2.3x Debt Position • As of September 30, 2023 • Debt position and Net Debt Ratio excludes customer receivable credit facility. • See footnotes in appendix f
Slide 11: Reiterating 2023 Outlook and Providing Preliminary 2024 Outlook
Reiterating 2023 Outlook and Providing Preliminary 2024 Outlook 2023 Guidance* » Adjusted EBITDA1 for the full year 2023 expected to be in the range of $183 to $193 million. » CapEx for the full year 2023 expected to be between $160 to $170 million. Preliminary 2024 Guidance* » Adjusted EBITDA1 for
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 ATN
Slide 14: Telecom Market and Business Dynamics
Telecom Market and Business Dynamics Strong Market Growth, Durable Customer Relationships, and Sound Stewardship Strong Macro Trends Recurring Revenues Efficiencies and Smart Driving Growth with Growth Capital Deployment Opportunities Prospects Global digital Established subsidiaries Focused on driv
Slide 15: 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 16: 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 17: Full Year Revenue, EBITDA, & Adjusted EBITDA
Full Year Revenue, EBITDA1, & Adjusted EBITDA2 in millions Revenue EBITDA1 Adjusted EBITDA2 +20% 20% $726 $156 +28% $165 $603 +63% $129 $95 2021 2022 2021 2022 2021 2022 17
Slide 18: Thank You
Thank You IR Website: ir.atni.com IR Email: ir@atni.com 18
Slide 19: Appendix
Appendix AIN 13
Slide 20: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements This presentation and our press release contain 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 tran
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 September 30, 2023 and 2022 2023 2022 2023 2022 2023 2022 2023 2022 International International US US Other* Other* Total Total Telecom Telecom Telecom Telecom Other* Other* ATN ATN Total Revenue: $ 93,878 $ 90,007 $ 97,158 $ 92,206 $ - $ - $ 1
Slide 24: Operating Metrics
Operating Metrics Operating Metrics 2023 2023 2023 2022 2022 Q3 2023 Q3 Q2 Q1 Q4 Q3 vs. Q3 2022 Broadband Homes Passed 746,600 746,800 736,300 728,900 613,600 22% Broadband Homes Passed by HSD* 333,500 331,000 301,600 275,100 219,300 52% Broadband Customers 214,800 217,100 216,900 210,300 205,200 5%
Slide 25: Table 1 Unaudited Condensed Consolidated Balance Sheets
Table 1 Table 2 ATN International, Inc. ATN International, Inc. Unaudited Condensed Consolidated Balance Sheets Unaudited Condensed Consolidated Statements of Operations (in Thousands) (in Thousands, Except per Share Data) September 30, December 31, Three Months Ended, Nine Months Ended, 2023 2022 S
Slide 26: Table 3 Unaudited Condensed Consolidated Cash Flow Statements
Table 3 ATN International, Inc. Unaudited Condensed Consolidated Cash Flow Statements Table 4 (in Thousands) ATN International, Inc. Selected Segment Financial Information Nine Months Ended September 30, (In Thousands) 2023 2022 For the three months ended September 30, 2023 is as follows: Net Loss $
Slide 27: Table 4 (continued) Selected Segment Financial Information
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 nine months ended September 30, 2023 is as follows: For the three months ended September 30, 202
Slide 28: Table 5 Reconciliation of Non-GAAP Measures
Table 4 (continued) Table 5 ATN International, Inc. ATN International, Inc. Selected Segment Financial Information Reconciliation of Non-GAAP Measures (In Thousands) (In Thousands) For the nine months ended September 30, 2022 is as follows: For the three months ended September 30, 2023 is as follows
Slide 29: Table 5 (continued) Reconciliation of Non-GAAP Measures
Table 5 (continued) ATN International, Inc. Table 6 Reconciliation of Non-GAAP Measures (In Thousands) ATN International, Inc. Non GAAP Measure - Net Debt Ratio For the nine months ended September 30, 2023 is as follows: (in Thousands) International Corporate and Telecom US Telecom Other * Total Sep