ATNI ATN International Inc

ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported financial results for the three and nine months ended September 30, 2023.

Remarks by Michael Prior, ATN CEO“We continued to execute on our First-to-Fiber and Glass & Steel™ strategies in the third quarter, contributing to solid revenue growth of 5% across the enterprise,” said Michael Prior, Chief Executive Officer of ATN. “Operating income and Adjusted EBITDA also grew in the third quarter, reflecting the positive momentum of the capital investments in our markets, and we remain on track to achieve our 2023 guidance.

“In the third quarter, we achieved strong high-speed broadband subscriber growth of 20%. Additionally, our international markets saw a 13% annual increase in mobile subscribers,” Prior said. “Based on strong market tailwinds and our approach to maximizing the long-term value of our capital investments, we are excited about the prospects for growth and free cash flow expansion across ATN’s Caribbean operations.

"Domestically, we continue to expand our network reach to high-speed data subscribers and enterprise and government customers. At the same time, we are making progress on rationalizing legacy network and operating costs, with further reductions expected over the coming year. Our team won another $45 million in USDA grants to connect people in remote and rural areas to high-speed Internet, including a partnered project where a tribal entity is the direct award recipient. Grants such as these will fund further fiber network expansion in rural Alaska and the US southwest.

“As we move closer to the final year of our three-year schedule of investments, we are planning to come down the other side of the investment bell curve, positioning us to start to reap the benefits of our network investments more fully. These expected benefits include growth in our subscriber base, revenue, and operating margins alongside reduced capital expenditures, as reflected in our full-year 2024 preliminary outlook," Prior concluded.

Third Quarter 2023 Financial Results

Consolidated revenues were $191.0 million, up 5% versus $182.2 million in the year-ago quarter. This increase primarily reflects higher fixed and carrier services revenues, including those from the Sacred Wind acquisition, partially offset by lower legacy roaming and construction revenues.

Operating income rose to $6.8 million, from $1.4 million in the year-ago quarter. The year-over-year increase was primarily due to higher revenues, partially offset by an increase in operating and depreciation expenses from the Sacred Wind acquisition.

Net loss attributable to ATN stockholders was $(3.6) million, or a loss of $(0.31) per share, compared with a net loss attributable to ATN stockholders of $(2.8) million, or $(0.25) loss per share, in the year-ago quarter. The decrease in net income was due primarily to a $5.8 million increase in interest expense partially offset by a $5.4 million increase in operating income. In both periods, the loss per share calculation includes the impact of preferred dividends that are not included in the net loss calculation.

Adjusted EBITDA1 increased to $47.8 million, from $43.6 million in the year-ago quarter.

Segment Operating Results (in Thousands)

The Company recorded financial results in three categories: (i) International Telecom; (ii) US Telecom; and (iii) Corporate and Other.

For Three Months Ended September 30, 2023 and 2022
		2023		2022		2023			2022			2023			2022			2023		2022
	International		International		US			US			Corporate			Corporate			Total		Total
	Telecom		Telecom		Telecom			Telecom			and Other*			and Other*			ATN		ATN
Total Revenue:	$	93,878	$	90,007	$	97,158		$	92,206		$	-		$	-		$	191,036	$	182,213
Mobility		27,791		26,482		946			2,356			-			-			28,737		28,838
Fixed		59,983		58,567		58,342			51,652			-			-			118,325		110,219
Carrier Services		3,441		3,220		32,319			31,360			-			-			35,760		34,580
Construction		-		-		2,038			3,332			-			-			2,038		3,332
All other		2,663		1,738		3,513			3,506			-			-			6,176		5,244
Operating Income (Loss)	$	12,800	$	13,360	$	3,018		$	716		$	(8,981	)	$	(12,637	)	$	6,837	$	1,439
EBITDA2	$	27,394	$	27,866	$	25,300		$	21,913		$	(8,363	)	$	(11,791	)	$	44,331	$	37,988
Adjusted EBITDA1	$	27,502	$	27,917	$	26,861		$	22,044		$	(6,516	)	$	(6,405	)	$	47,847	$	43,556
Capital Expenditures**	$	18,744	$	19,400	$	18,445		$	19,131		$	-		$	209		$	37,189	$	38,740
For Nine Months Ended September 30, 2023 and 2022
		2023		2022		2023			2022			2023			2022			2023		2022
	International		International		US			US			Corporate			Corporate			Total		Total
	Telecom		Telecom		Telecom			Telecom			and Other*			and Other*			ATN		ATN
Total Revenue:	$	276,267	$	265,197	$	286,983		$	268,533		$	-		$	-		$	563,250	$	533,730
Mobility		80,754		75,022		3,081			6,036			-			-			83,835		81,058
Fixed		178,546		175,262		175,346			148,800			-			-			353,892		324,062
Carrier Services		11,011		10,042		95,978			96,102			-			-			106,989		106,144
Construction		-		-		3,648			8,615			-			-			3,648		8,615
All other		5,956		4,871		8,930			8,980			-			-			14,886		13,851
Operating Income (Loss)	$	41,177	$	36,889	$	(3,719	)	$	(4,199	)	$	(27,547	)	$	(29,418	)	$	9,911	$	3,272
EBITDA2	$	84,807	$	81,190	$	67,126		$	58,899		$	(25,517	)	$	(26,652	)	$	126,416	$	113,437
Adjusted EBITDA1	$	85,089	$	82,389	$	72,443		$	62,441		$	(19,097	)	$	(17,440	)	$	138,435	$	127,390
Capital Expenditures**	$	57,610	$	53,270	$	69,030		$	56,041		$	-		$	633		$	126,640	$	109,944

* Corporate and Other refer to corporate overhead expenses and consolidating adjustments.**Excludes government capital program amounts disbursed and amounts received.

ATN’s Strategic Plan and Key Performance Indicators

Investments to drive long-term growth and durable cash flow

To address the growing need for more bandwidth and reliable connectivity across all markets in which we operate, the Company continues to deploy capital in fiber and fiber-fed high-speed data solutions to increase the Company’s fiber footprint and grow broadband subscribers.

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%
HSD* Broadband Customers	132,900		129,000		122,600		113,000		110,700		20%
Fiber Route Miles	11,575		11,561		11,099		10,545		9,756		19%
International Mobile Subscribers
Pre-Paid	346,100		340,200		328,800		322,000		301,800		15%
Post-Paid	56,100		58,900		56,900		55,700		54,200		4%
Total	402,200		399,100		385,700		377,700		356,000		13%
Blended Churn	3.76	%	2.69	%	2.81	%	2.25	%	3.02	%

*HSD is defined as download speeds 100 Mbps or greater and HSD Broadband Customers as subscribers connected to our high-speed networks regardless of the speed of plan selected.

Note: Data presented may differ from prior periods to reflect more accurate data and/or changes in calculation methodology and process.

Balance Sheet and Cash Flow Highlights

Total cash, cash equivalents and restricted cash as of September 30, 2023, was $73.1 million and total debt was $498.4 million, versus $77.8 million of cash, cash equivalents and restricted cash and $355.7 million of total debt at the end of the year-ago quarter.

Net cash provided by operating activities was $89.5 million for the nine months ended September 30, 2023, compared with net cash provided by operating activities of $79.0 million in the prior year period.   

Capital expenditures were $126.6 million net of $14.3 million of reimbursable capital expenditures for the nine months ended September 30, 2023, versus $109.9 million, net of $4.0 million of reimbursable capital expenditures in the prior year period.

Quarterly Dividends and Stock Repurchases

Quarterly dividends ATN paid a quarterly dividend of $0.21 per share on October 6, 2023, on all common shares outstanding to stockholders of record as of September 30, 2023.

Stock repurchases of the Company’s common stock totaled $11.7 million in the first nine months of 2023.

Guidance and Outlook

The Company is continuing investments in its “Glass & Steel™” and “First-to-Fiber” market strategies. At the start of 2022, the Company set business targets to be achieved exiting 2024 following a three-year period of above-normal network investments. The Company is reiterating its 2023 outlook and providing preliminary guidance for the full year 2024 as network investments begin to return to more normalized levels and management continues its focus on increasing free cash flow and driving positive returns on its network investments.

Reiterates outlook for full year ending December 31, 2023:

Adjusted EBITDA1	$183 million to $193 million	Full year 2023
Capital Expenditures	$160 million to $170 million	Full year 2023

Provides preliminary outlook for full year ending December 31, 2024:

Adjusted EBITDA1	$200 million to $208 million	Full year 2024
Capital Expenditures	$120 million to $130 million	Full year 2024

For the Company’s full year 2023 and 2024 outlooks for Adjusted EBITDA, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA.

Conference Call Information

Call Date: Thursday, October 26, 2023Call Time: 10:00 a.m. ETWebcast Link: https://edge.media-server.com/mmc/p/3yif2rqx

Live Call Participant Link: https://register.vevent.com/register/BIdac10076c12d42508a2c85e814f53a36

Webcast Link InstructionsYou can listen to a live audio webcast of the conference call by visiting the “Webcast Link” above or the "Events & Presentations" section of the Company's Investor Relations website at https://ir.atni.com/events-and-presentations. A replay of the conference call will be available at the same locations beginning at approximately 1:00 pm ET on the same day. The Company also will provide an investor presentation as a supplement to the call on the “Events & Presentations” section of its Investor Relations website.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a leading provider of digital infrastructure and communications services for all. The Company operates in the United States and internationally, including the Caribbean region, with a focus on rural and remote markets with a growing demand for infrastructure investments. The Company’s operating subsidiaries today primarily provide: (i) advanced mobility and fixed connectivity to residential, business, and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and (ii) carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities. For more information, please visit www.atni.com.

Use of Non-GAAP Financial Measures and Definition of Terms

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 this release and the tables included herein.

EBITDA is defined as Operating income (loss) before depreciation and amortization expense.

Adjusted EBITDA is defined as Operating income (loss) before depreciation and amortization expense, transaction-related charges, restructuring expenses, one-time impairment or special charges, and the gain (loss) on disposition of assets. To more closely align with similar calculations presented by companies in its industry, beginning in the first quarter of 2023, the Company excluded non-cash stock-based compensation in its adjustment to derive Adjusted EBITDA. Prior periods have been restated to conform to this definition change.

Net Debt is defined as total debt less cash and cash equivalents and restricted cash.

Net Debt Ratio is defined as Net Debt divided by the trailing four quarters’ ended total Adjusted EBITDA at the measurement date.

The Company believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of the Company's core operating results and enhances the usefulness of comparing such performance with prior periods. Management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the Company’s core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release. While non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating the Company’s own operating results over different periods of time, the Company urges investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains 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 transition of its US Telecom business, its future revenues, operating income, cash flows, network and operating costs, EBITDA, Adjusted EBITDA, Net Debt, Net Debt Ratio, and capital investments; demand for the Company’s services and industry trends; the Company’s liquidity; our expansion into growing markets; the expansion of the Company’s customer base; receipt of certain government grants and management’s plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results. Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1) the general performance of the Company’s operations, including operating margins, revenues, capital expenditures, and the retention of and future growth of the Company’s subscriber base and ARPU; (2) the Company’s reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to the Company’s network infrastructure; (3) the Company’s ability to satisfy the needs and demands of the Company’s major carrier customers; (4) the Company’s ability to realize expansion plans for its fiber markets; (5) the adequacy and expansion capabilities of the Company’s network capacity and customer service system to support the Company’s customer growth; (6) the Company’s ability to efficiently and cost-effectively upgrade the Company’s networks and information technology platforms to address rapid and significant technological changes in the telecommunications industry; (7) the Company’s continued access to capital and credit markets on terms it deems favorable; (8) government subsidy program availability and regulation of the Company’s businesses, which may impact the Company’s telecommunications licenses, the Company’s revenue and the Company’s operating costs; (9) the Company’s ability to successfully transition its US Telecom business away from wholesale mobility to other carrier and consumer-based services; (10) ongoing risk of an economic downturn, political, geopolitical and other risks and opportunities facing the Company’s operations, including those resulting from the continued inflation and other macroeconomic headwinds including increased costs and supply chain disruptions; (11) the loss of, or an inability to recruit skilled personnel in the Company’s various jurisdictions, including key members of management; (12) the Company’s ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (13) the occurrence of weather events and natural catastrophes and the Company’s ability to secure the appropriate level of insurance coverage for these assets; and (14) increased competition. These and other additional factors that may cause actual future events and results to differ materially from the events and results indicated in the forward-looking statements above are set forth more fully under Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 15, 2023, and the other reports the Company files from time to time with the SEC. The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors that may affect such forward-looking statements, except as required by law.

Contact

Justin D. Benincasa	Ian Rhoades
Chief Financial Officer	Investor Relations
ATN International, Inc.	Sharon Merrill Advisors, Inc.
978-619-1300	ATNI@investorrelations.com

Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
	September 30,			December 31,
	2023			2022
Assets:
Cash and cash equivalents	$	66,063		$	54,660
Restricted cash		7,024			5,068
Customer receivable		6,702			5,803
Other current assets		187,576			164,157
Total current assets		267,365			229,688
Property, plant and equipment, net		1,069,433			1,055,954
Operating lease right-of-use assets		103,002			108,702
Customer receivable - long term		44,623			46,706
Goodwill and other intangible assets, net		176,443			185,794
Other assets		90,360			81,025
Total assets	$	1,751,226		$	1,707,869
Liabilities, redeemable non-controlling interests and stockholders’ equity:
Current portion of long-term debt	$	21,278		$	6,172
Current portion of customer receivable credit facility		6,727			6,073
Taxes payable		9,463			7,335
Current portion of lease liabilities		16,331			15,457
Other current liabilities		208,858			198,143
Total current liabilities		262,657			233,180
Long-term debt, net of current portion	$	477,099		$	415,727
Customer receivable credit facility, net of current portion		38,010			39,275
Deferred income taxes		19,198			28,650
Lease liabilities		80,260			83,319
Other long-term liabilities		133,102			138,420
Total liabilities		1,010,326			938,571
Redeemable non-controlling interests		95,787			92,468
Stockholders' equity:
Total ATN International, Inc.’s stockholders’ equity		545,754			580,814
Non-controlling interests		99,359			96,016
Total stockholders' equity		645,113			676,830
Total liabilities, redeemable non-controlling interests and stockholders’ equity	$	1,751,226		$	1,707,869

Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
	Three Months Ended,								Nine Months Ended,
	September 30,								September 30,
		2023				2022				2023				2022
Revenues:
Communications services	$	184,601			$	173,977			$	547,484			$	512,315
Construction		2,038				3,332				3,648				8,615
Other		4,397				4,904				12,118				12,800
Total revenue		191,036				182,213				563,250				533,730
Operating expenses (excluding depreciation and amortization unless otherwise indicated):
Cost of services and other		80,367				78,949				237,125				229,821
Cost of construction revenue		2,031				3,321				3,635				8,640
Selling, general and administrative		60,792				56,387				184,055				167,879
Stock-based compensation		1,956				1,669				6,473				5,696
Transaction-related charges		45				3,416				496				4,381
Restructuring expenses		1,383				-				4,640				-
Depreciation		34,370				33,312				106,991				100,421
Amortization of intangibles from acquisitions		3,124				3,236				9,514				9,744
Loss on disposition of assets		132				484				410				3,876
Total operating expenses		184,200				180,774				553,339				530,458
Operating income		6,836				1,439				9,911				3,272
Other income (expense):
Interest expense, net		(11,309	)			(5,475	)			(30,338	)			(13,066	)
Other income		213				1,904				2,623				3,379
Other income (expense), net		(11,096	)			(3,571	)			(27,715	)			(9,687	)
Loss before income taxes		(4,260	)			(2,132	)			(17,804	)			(6,415	)
Income tax benefit		(542	)			(360	)			(6,369	)			(1,378	)
Net loss		(3,718	)			(1,772	)			(11,435	)			(5,037	)
Net (income) loss attributable to non-controlling interests, net		134				(1,011	)			2,733				782
Net loss attributable to ATN International, Inc. stockholders	$	(3,584	)		$	(2,783	)		$	(8,702	)		$	(4,255	)
Net loss per weighted average share attributable to ATN International, Inc. stockholders:
Basic and Diluted Net Loss	$	(0.31	)		$	(0.25	)		$	(0.80	)		$	(0.49	)
Weighted average common shares outstanding:
Basic		15,601				15,763				15,666				15,746
Diluted		15,601				15,763				15,666				15,746

Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statements
(in Thousands)
	Nine Months Ended September 30,
		2023				2022
Net Loss	$	(11,435	)		$	(5,037	)
Depreciation		106,991				100,421
Amortization of intangibles from acquisitions		9,514				9,744
Provision for doubtful accounts		4,014				4,969
Amortization of debt discount and debt issuance costs		1,806				1,512
Loss on disposition of long-lived assets		410				3,876
Stock-based compensation		6,472				5,696
Deferred income taxes		(9,452	)			(6,619	)
Loss on pension settlement		369				1,725
Gain on equity investments		(2,752	)			(5,617	)
Increase (decrease) in customer receivable		1,185				(4,399	)
Change in prepaid and accrued income taxes		3,602				8,369
Change in other operating assets and liabilities		(21,240	)			(35,665	)
Net cash provided by operating activities		89,484				78,975
Capital expenditures		(126,640	)			(109,944	)
Government capital programs:
Amounts disbursed		(14,261	)			(4,015	)
Amounts received		16,065				2,668
Proceeds from sale of investments		-				15,745
Spectrum deposit refund		-				1,136
Proceeds from dispositions of long-lived assets		-				683
Purchases of strategic investments		(1,055	)			(2,750	)
Purchases and sales of businesses		1,314				1,835
Net cash used in investing activities		(124,577	)			(94,642	)
Dividends paid on common stock		(9,918	)			(8,028	)
Distributions to non-controlling interests		(1,447	)			(1,375	)
Business combination contingent consideration		-				(1,718	)
Finance leases		(932	)			(820	)
Term loan - borrowings		130,000				711
Term loan - repayments		(3,532	)			(953	)
Payment of debt issuance costs		(3,708	)			-
Revolving credit facilities – borrowings		126,893				68,000
Revolving credit facilities – repayments		(174,292	)			(45,000	)
Proceeds from customer receivable credit facility		4,300				12,225
Repayment of customer receivable credit facility		(4,998	)			(3,543	)
Purchases of common stock - stock-based compensation		(1,473	)			(1,169	)
Purchases of common stock - share repurchase plan		(11,679	)			(942	)
Repurchases of non-controlling interests, net		(762	)			(4,609	)
Net cash provided by financing activities		48,452				12,779
Net change in total cash, cash equivalents and restricted cash		13,359				(2,888	)
Total cash, cash equivalents and restricted cash, beginning of period		59,728				80,697
Total cash, cash equivalents and restricted cash, end of period	$	73,087			$	77,809

Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	3,818		$	129		$	-		$	3,947
Consumer		23,973			817			-			24,790
Total	$	27,791		$	946		$	-		$	28,737
Fixed
Business	$	18,016		$	35,680		$	-		$	53,696
Consumer		41,967			22,662			-			64,629
Total	$	59,983		$	58,342		$	-		$	118,325
Carrier Services	$	3,441		$	32,319		$	-		$	35,760
Other		1,236			544			-			1,780
Total Communications Services	$	92,451		$	92,151		$	-		$	184,602
Construction	$	-		$	2,038		$	-		$	2,038
Managed services	$	1,427		$	2,969		$	-		$	4,396
Total Other	$	1,427		$	2,969		$	-		$	4,396
Total Revenue	$	93,878		$	97,158		$	-		$	191,036
Depreciation	$	14,354		$	19,398		$	618		$	34,370
Amortization of intangibles from acquisitions	$	240		$	2,884		$	-		$	3,124
Total operating expenses	$	81,078		$	94,140		$	8,981		$	184,199
Operating income (loss)	$	12,800		$	3,018		$	(8,981	)	$	6,837
Net (income) loss attributable to non-controlling interests	$	(1,794	)	$	1,928		$	-		$	134
Non GAAP measures:
EBITDA (2)	$	27,394		$	25,300		$	(8,363	)	$	44,331
Adjusted EBITDA (1)	$	27,502		$	26,861		$	(6,516	)	$	47,847
Balance Sheet Data (at September 30, 2023):
Cash, cash equivalents and restricted cash	$	35,588		$	31,677		$	5,821		$	73,086
Total current assets		115,888			143,280			8,197			267,365
Fixed assets, net		476,355			587,623			5,455			1,069,433
Total assets		671,285			996,413			83,528			1,751,226
Total current liabilities		82,178			148,351			32,127			262,656
Total debt, including current portion		63,210			285,843			149,326			498,379
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
							Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended September 30, 2022 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	3,706		$	298		$	-		$	4,004
Consumer		22,776			2,058			-			24,834
Total	$	26,482		$	2,356		$	-		$	28,838
Fixed
Business	$	18,578		$	32,509		$	-		$	51,087
Consumer		39,989			19,143			-			59,132
Total	$	58,567		$	51,652		$	-		$	110,219
Carrier Services	$	3,220		$	31,360		$	-		$	34,580
Other		340			-			-			340
Total Communications Services	$	88,609		$	85,368		$	-		$	173,977
Construction	$	-		$	3,332		$	-		$	3,332
Managed services	$	1,398		$	3,506		$	-		$	4,904
Total Other	$	1,398		$	3,506		$	-		$	4,904
Total Revenue	$	90,007		$	92,206		$	-		$	182,213
Depreciation	$	14,126		$	18,341		$	846		$	33,313
Amortization of intangibles from acquisitions	$	380		$	2,856		$	-		$	3,236
Total operating expenses	$	76,647		$	91,490		$	12,637		$	180,774
Operating income (loss)	$	13,360		$	716		$	(12,637	)	$	1,439
Net (income) loss attributable to non-controlling interests	$	(2,391	)	$	1,380		$	-		$	(1,011	)
Non GAAP measures:
EBITDA (2)	$	27,866		$	21,913		$	(11,791	)	$	37,988
Adjusted EBITDA (1)	$	27,917		$	22,044		$	(6,405	)	$	43,556
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
							Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the nine months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	11,484		$	415		$	-		$	11,899
Consumer		69,270			2,666			-			71,936
Total	$	80,754		$	3,081		$	-		$	83,835
Fixed
Business	$	52,602		$	107,494		$	-		$	160,096
Consumer		125,944			67,852			-			193,796
Total	$	178,546		$	175,346		$	-		$	353,892
Carrier Services	$	11,011		$	95,978		$	-		$	106,989
Other		2,084			684			-			2,768
Total Communications Services	$	272,395		$	275,089		$	-		$	547,484
Construction	$	-		$	3,648		$	-		$	3,648
Managed services	$	3,872		$	8,246		$	-		$	12,118
Total Other	$	3,872		$	8,246		$	-		$	12,118
Total Revenue	$	276,267		$	286,983		$	-		$	563,250
Depreciation	$	42,646		$	62,315		$	2,030		$	106,991
Amortization of intangibles from acquisitions	$	984		$	8,530		$	-		$	9,514
Total operating expenses	$	235,090		$	290,702		$	27,547		$	553,339
Operating income (loss)	$	41,177		$	(3,719	)	$	(27,547	)	$	9,911
Net (income) loss attributable to non-controlling interests	$	(5,650	)	$	8,383		$	-		$	2,733
Non GAAP measures:
EBITDA (2)	$	84,807		$	67,126		$	(25,517	)	$	126,416
Adjusted EBITDA (1)	$	85,089		$	72,443		$	(19,097	)	$	138,435
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
							Table 4 (continued)
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the nine months ended September 30, 2022 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Statement of Operations Data:
Revenue
Mobility
Business	$	10,997		$	973		$	-		$	11,970
Consumer		64,025			5,063			-			69,088
Total	$	75,022		$	6,036		$	-		$	81,058
Fixed
Business	$	52,827		$	91,521		$	-		$	144,348
Consumer		122,435			57,279			-			179,714
Total	$	175,262		$	148,800		$	-		$	324,062
Carrier Services	$	10,042		$	96,102		$	-		$	106,144
Other		1,051			-			-			1,051
Total Communications Services	$	261,377		$	250,938		$	-		$	512,315
Construction	$	-		$	8,615		$	-		$	8,615
Managed services	$	3,820		$	8,980		$	-		$	12,800
Total Other	$	3,820		$	8,980		$	-		$	12,800
Total Revenue	$	265,197		$	268,533		$	-		$	533,730
Depreciation	$	43,109		$	54,546		$	2,766		$	100,421
Amortization of intangibles from acquisitions	$	1,192		$	8,552		$	-		$	9,744
Total operating expenses	$	228,308		$	272,732		$	29,418		$	530,458
Operating income (loss)	$	36,889		$	(4,199	)	$	(29,418	)	$	3,272
Net (income) loss attributable to non-controlling interests	$	(4,830	)	$	5,612		$	-		$	782
Non GAAP measures:
EBITDA (2)	$	81,190		$	58,899		$	(26,652	)	$	113,437
Adjusted EBITDA (1)	$	82,389		$	62,441		$	(17,440	)	$	127,390
Balance Sheet Data (at December 31, 2022):
Cash, cash equivalents and restricted cash	$	26,418		$	26,375		$	6,935		$	59,728
Total current assets		105,324			116,038			8,326			229,688
Fixed assets, net		462,447			585,969			7,538			1,055,954
Total assets		643,664			980,543			83,662			1,707,869
Total current liabilities		86,738			119,756			26,686			233,180
Total debt, including current portion		59,659			263,240			99,000			421,899
(1) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA
(2) See Table 5 for reconciliation of Operating Income to EBITDA
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments

Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the three months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	12,800		$	3,018		$	(8,981	)	$	6,837
Depreciation expense		14,354			19,398			618			34,370
Amortization of intangibles from acquisitions		240			2,884			-			3,124
EBITDA	$	27,394		$	25,300		$	(8,363	)	$	44,331
Stock-based compensation		130			23			1,802			1,955
Restructuring expenses		-			1,383			-			1,383
Transaction-related charges		-			-			45			45
(Gain) Loss on disposition of assets		(22	)		155			-			133
ADJUSTED EBITDA	$	27,502		$	26,861		$	(6,516	)	$	47,847
For the three months ended September 30, 2022 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	13,360		$	716		$	(12,637	)	$	1,439
Depreciation expense		14,126			18,341			846			33,313
Amortization of intangibles from acquisitions		380			2,856			-			3,236
EBITDA	$	27,866		$	21,913		$	(11,791	)	$	37,988
Stock-based compensation		54			132			1,483			1,669
Transaction-related charges		-			212			3,203			3,415
(Gain) Loss on disposition of assets		(3	)		(213	)		700			484
ADJUSTED EBITDA	$	27,917		$	22,044		$	(6,405	)	$	43,556
Table 5 (continued)
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
For the nine months ended September 30, 2023 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	41,177		$	(3,719	)	$	(27,547	)	$	9,911
Depreciation expense		42,646			62,315			2,030			106,991
Amortization of intangibles from acquisitions		984			8,530			-			9,514
EBITDA	$	84,807		$	67,126		$	(25,517	)	$	126,416
Stock-based compensation		307			109			6,057			6,473
Restructuring expenses		-			4,640			-			4,640
Transaction-related charges		-			133			363			496
(Gain) Loss on disposition of assets		(25	)		435			-			410
ADJUSTED EBITDA	$	85,089		$	72,443		$	(19,097	)	$	138,435
For the nine months ended September 30, 2022 is as follows:
	International Telecom			US Telecom			Corporate and Other *			Total
Operating income (loss)	$	36,889		$	(4,199	)	$	(29,418	)		3,272
Depreciation expense		43,109			54,546			2,766			100,421
Amortization of intangibles from acquisitions		1,192			8,552			-			9,744
EBITDA	$	81,190		$	58,899		$	(26,652	)	$	113,437
Stock-based compensation		170			301			5,225			5,696
Transaction-related charges		-			1,094			3,287			4,381
(Gain) Loss on disposition of assets		1,029			2,147			700			3,876
ADJUSTED EBITDA	$	82,389		$	62,441		$	(17,440	)	$	127,390

Table 6
ATN International, Inc.
Non GAAP Measure - Net Debt Ratio
(in Thousands)
	September 30,			December 31,
	2023			2022
Current portion of long-term debt *	$	21,278		$	6,172
Long-term debt, net of current portion *		477,099			415,727
Total debt	$	498,377		$	421,899
Less: Cash, cash equivalents and restricted cash		73,087			59,728
Net Debt	$	425,290		$	362,171
Adjusted EBITDA - for the four quarters ended	$	183,734		$	172,688
Net Debt Ratio		2.31			2.10
* Excludes Customer receivable credit facility

 

___________________           

1 See Table 5 for reconciliation of Operating Income to Adjusted EBITDA, a non-GAAP measure.

2 For the Company’s Adjusted EBITDA Guidance, the Company is not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures, on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a full description of items excluded from the Company’s expected Adjusted EBITDA