Atn International, Inc. · NASDAQ:ATNI
Atn International — Q4 2021 Earnings Presentation
28 slides from Atn International's earnings presentation, Feb 24, 2022
Slide 1: Investor Presentation: Fourth Quarter and Full Year 2021
ATNI: Nasdaq Investor Presentation Fourth Quarter and Full Year 2021 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: CEO quote on building networks in under-served markets
“ATN is focused on building a strong communications network and subscriber base in traditionally under-built or under-served market segments. This delivers high recurring revenues, durable cash flows, reliable dividends, and long-term shareholder value.” Michael Prior, CEO 3
Slide 4: ATN provides access to opportunity and the global marketplace
ATN provides access to opportunity and the global marketplace United States: United States: International: Rural Alaska Navajo Nation Caribbean & Guyana Providing high-speed data Bringing fiber into poorly Rapidly deploying fiber and services to schools and served communities, both other high-
Slide 5: Our mission
Our mission is to digitally empower people and communities so that they can connect with the world and prosper
Slide 6: Our vision
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 7: Initiatives to Secure Our Vision and Long-term Growth
Initiatives to Secure Our Vision and Long-term Growth Domestic: » Alaska provides ample opportunity to accelerate our revenue and customer growth by expanding the reach of our domestic data network » Pivoting to a “Glass and Steel” fiber-first platform strategy in lower-48 and transitioning away fro
Slide 8: Q4 2021 Highlights
Q4 2021 Highlights 4Q21 ATN Segment Revenue Distribution Double-Digit Revenue and Adjusted EBITDA Growth YoY ~47% ~53% Successful Integration of Alaska Communications Consistent Growth in International Markets Domestic Interntional Further Advanced Transition to Fiber-First Platform Strategy 8
Slide 9: Three-Year Outlook: 2024 Objectives
Three-Year Outlook: 2024 Objectives » Revenue of $770-$810 million • excluding construction revenues • compound annual growth rate (“CAGR”) of 4-6% » Adjusted EBITDA CAGR of 8-10% over three-year period » Capital Expenditures: 10-15% of revenue by end of 2024 • Returning to more normalized levels by
Slide 10: 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 11: Fourth Quarter and Full Year 2021 Financial Highlights
Fourth Quarter and Full Year 2021 Financial Highlights 11
Slide 12: Q4 Revenue & Adjusted EBITDA Breakdown by Segment
Q4 Revenue & Adjusted EBITDA Breakdown by Segment in millions Domestic International Revenue Adjusted EBITDA Revenue Adjusted EBITDA $100 5% $88 $84 156% $39 -3% $29 $28 $22 175% $8 2020 2021 2020 2021 2020 2021 2020 2021 » YoY revenue and adjusted EBITDA increases driven by integration of Alaska Co
Slide 13: Q4 & Full Year Revenue & Adjusted EBITDA
Q4 & Full Year Revenue & Adjusted EBITDA in millions 4Q 2021 Full Year 2021 Adjusted EBITDA Revenue Adjusted EBITDA Revenue $603 32% $455 52% $188 7% $129 38% $124 $121 $31 $42 2020 2021 2020 2021 2020 2021 2020 2021 » YoY revenue and adjusted EBITDA increases driven by integration of Alaska Communi
Slide 14: Q4 Operational Metrics
Q4 Operational Metrics Fiber Connected Broadband Homes Broadband Customers Fiber Route Miles Towers Owned Towers Passed 203,700 493,000 7,900 394 398 Passed by HSD1: 36% HSD1 Capable: 48% 1 HSD is defined as download speeds > 100mps 14
Slide 15: Strong Balance Sheet, Ample Debt Capacity, and Targeted Capex
Strong Balance Sheet, Ample Debt Capacity, and Targeted Capex $35.2M $81M $138.5M 4Q21 Capex Cash Position Undrawn Revolver Capacity $106.1M $332M Net Leverage < 2x FY21 Capex Debt Position • As of December 31, 2021 • See footnotes in appendix for additional explanations of Capex (capital expenditur
Slide 16: Near-Term Outlook
Near-Term Outlook 2022 Guidance: » Significant revenue and Adjusted EBITDA growth • Includes full year of Alaska Communications business results. • Carrier services revenues to increasingly be generated by backhaul, tower rental, field maintenance, and technical services. • Additional contribution f
Slide 17: 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 18: Thank You
Thank You IR Website: ir.atni.com IR Email: ir@atni.com 18
Slide 19: Appendix
Appendix 1919
Slide 20: 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 21: Operating Results (in Thousands)
Operating Results (in Thousands) For Three Months Ended December 31, 2021 and 2020 2021 2020 2021 2020 2021 2020 2021 2020 International International US US Total Total Telecom Telecom Telecom Telecom All Other* All Other* ATN ATN Revenue $ 87,518 $ 83,819 $ 100,053 $ 38,700 $ - $ 1,182 $ 187,571 $
Slide 22: Table 1 Unaudited 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) December 31, December 31, Three Months Ended Year Ended 2021 2020 December 3
Slide 23: Table 3 Unaudited Condensed Consolidated Cash Flow Statement
Table 3 ATN International, Inc. Unaudited Condensed Consolidated Cash Flow Statement (in Thousands) Year Ended December 31, 2021 2020 Net income (loss) $ (20,809) $ (708) Depreciation 102,731 86,504 Amortization of intangibles from acquisitions 7,775 1,807 Provision for doubtful accounts 4,850 5,010
Slide 24: Table 4 Selected Segment Financial Information
Table 4 ATN International, Inc. ATN International, Inc. Selected Segment Financial Information Selected Segment Financial Information (In Thousands) (In Thousands) For the three months ended Decemb er 31, 2021 is as follows: For the three months ended Decemb er 31, 2020 is as follows: International
Slide 25: Selected Segment Financial Information
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, 2020 is as follows: International Renewable Corporate and
Slide 26: Selected Segment Operational Information
ATN International, Inc. ATN International, Inc. Selected Segment Operational Information Selected Segment Financial Information (In Thousands) at Decemb er 31, 2020 As of December 31, International Renewable Corporate and Telecom US Telecom Energy Other * Total 2021 Balance Sheet Data (at December 3
Slide 27: Table 5 Reconciliation of Non-GAAP Measures
Table 5 ATN International, Inc. ATN International, Inc. Reconciliation of Non-GAAP Measures Reconciliation of Non-GAAP Measures (In Thousands) (In Thousands) For the three months ended Decemb er 31, 2021 is as follows: For the year ended Decemb er 31, 2021 is as follows: International Renewable Corp
Slide 28: Table 6 Non GAAP Measure - Net Debt Ratio
Table 6 ATN International, Inc. Non GAAP Measure - Net Debt Ratio (in Thousands, Except per Share Data) At December 31, 2021 2020 Current portion of long-term debt $ 4,665 $ 3,750 Long-term debt, net of current portion 327,111 69,073 Total debt $ 331,776 $ 72,823 Less: Cash and cash equivalents 79,6