On July 25, 2024, ATN International Inc (ATNI, Financial) released its 8-K filing for the second quarter of 2024. ATN International Inc is a telecommunications and utilities company that provides digital infrastructure and communications services, focusing on rural and remote markets in the United States and internationally, including Bermuda and the Caribbean region. The company operates through two main segments: US Telecom and International Telecom.
Performance Overview
ATN International Inc (ATNI, Financial) reported consolidated revenues of $183.3 million for Q2 2024, slightly below the $186.4 million reported in the same quarter last year. This 2% decrease was primarily due to the expiration of the ECF program in the US Telecom segment, which offset the revenue growth in the International Telecom segment.
Operating income saw a significant increase to $24.3 million from $2.4 million in the year-ago quarter. This improvement was driven by a $15.9 million gain on the disposition of a non-core asset, a $4.3 million reduction in selling, general, and administrative expenses, and a $1.9 million reduction in depreciation and amortization expenses.
Financial Achievements
Net income attributable to ATN stockholders was $9.0 million, or $0.50 per diluted share, compared to $0.8 million, or a loss of $0.03 per share, in the same quarter last year. The increase in net income was primarily due to higher operating income, which offset the rise in interest expenses.
Adjusted EBITDA increased to $48.7 million from $45.8 million in the year-ago quarter, reflecting lower operating expenses that more than compensated for the revenue decline.
Segment Performance
| Segment | Q2 2024 Revenue ($000) | Q2 2023 Revenue ($000) | Q2 2024 Operating Income ($000) | Q2 2023 Operating Income ($000) |
|---|---|---|---|---|
| International Telecom | 95,357 | 91,981 | 32,405 | 14,552 |
| US Telecom | 87,924 | 94,460 | 884 | (2,394) |
| Corporate and Other | - | - | (8,973) | (9,720) |
| Total | 183,281 | 186,441 | 24,316 | 2,438 |
Balance Sheet and Cash Flow Highlights
As of June 30, 2024, ATN International Inc (ATNI, Financial) reported total cash, cash equivalents, and restricted cash of $73.3 million, with total debt amounting to $540.8 million. Net cash provided by operating activities for the first half of 2024 was $53.5 million, compared to $60.3 million in the prior year period. Capital expenditures for the same period were $61.8 million, net of $46.2 million of reimbursable capital expenditures, versus $89.5 million in the prior year period.
Strategic Plan and Outlook
ATN International Inc (ATNI, Financial) is in the final year of its three-year strategic plan initiated in 2021, focusing on accelerating investments in its high-speed data footprint and growing high-speed broadband subscribers. The company is reducing capital expenditures to more normalized levels and plans to augment further network expansion with grant funding.
"We are making progress in our efforts to leverage our investments to deliver top line growth while improving operating efficiency. Our second quarter performance is driving the business toward that goal as we increased consolidated Adjusted EBITDA by 6%, delivered International Telecom segment top-line and Adjusted EBITDA growth, and benefited from our cost management efforts," said Brad Martin, ATN Chief Executive Officer.
ATN International Inc (ATNI, Financial) reaffirmed its full-year 2024 guidance, expecting revenue (excluding construction revenue) between $730 million and $750 million, Adjusted EBITDA between $190 million and $200 million, and capital expenditures between $100 million and $110 million.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from ATN International Inc for further details.
