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Exhibit 99.1

 

NEWS RELEASE

 

FOR IMMEDIATE RELEASE

CONTACT:

Michael T. Prior

Tuesday, July 30, 2013

 

Chief Executive Officer

 

 

978-619-1300

 

 

 

 

 

Justin D. Benincasa

 

 

Chief Financial Officer

 

 

978-619-1300

 

Atlantic Tele-Network, Inc. Reports

Second Quarter 2013 Results

 

—Legacy wholesale and international wireless businesses experience steady year-over—year growth—

 

·                  Total revenues were $175.1 million

 

·                  Adjusted EBITDA was $45.9 million

 

·                  Operating income was $20.1 million

 

·                  Net income attributable to ATN’s stockholders was $8.9 million, or $0.56 per diluted share

 

Beverly, MA (July 30, 2013) — Atlantic Tele-Network, Inc. (NASDAQ: ATNI) today reported results for the second quarter ended June 30, 2013.

 

Second Quarter 2013 Financial Results

 

“Second quarter results reflected trends similar to those of the first quarter,” said Michael Prior, Atlantic Tele-Network’s Chief Executive Officer.  “We achieved solid year-over-year increases in revenues and operating profitability in our legacy domestic wholesale wireless business, primarily driven by higher data volumes and certain shorter-term service revenues, which have more than offset the impact of the sale of our Midwest spectrum late in 2012.  Second quarter results also benefited from stronger performance across all of our Island Wireless operations, where we have continued to grow our subscriber base and control costs.  Wireline revenues were slightly below last year’s second quarter as our domestic wireline business helped offset lower international long-distance revenue.

 

“We continue to expect the closing of our Alltel sale transaction to occur in the second half of this year, pending receipt of the necessary regulatory approvals.  Second quarter operating trends in this business were consistent with those of the prior quarter, with revenue comparisons reflecting the impact of attrition in the postpaid customer base and significant declines in wholesale revenues within these markets.”

 



 

Total revenues for the second quarter were $175.1 million, 5% below the $185.5 million reported for the second quarter of 2012.  The year-over-year decrease resulted from lower U.S. wireless revenues in both the wholesale and retail lines of our Alltel business, as reported in the Company’s U.S. Wireless segment, partially offset by higher revenues in our legacy U.S. wholesale wireless business, higher international wireless revenues and equipment sales.

 

Adjusted EBITDA(1) for the 2013 second quarter was $45.9 million, 7% below the $49.6 million reported in the 2012 second quarter, as a result of the wholesale and retail revenue decline within the Alltel markets.  This decline was partially offset by improved profitability within the legacy wholesale business of the Company’s U.S. Wireless segment, along with improvements in the International Integrated Telephony and Island Wireless segments.  Operating income for the second quarter of 2013 was $20.1 million, a 13% decrease from the $23.1 million reported in last year’s second quarter.  Net income attributable to ATN’s stockholders was $8.9 million, or $0.56 per diluted share, as compared to the $10.5 million, or $0.67 per diluted share, reported in last year’s second quarter.

 

Second Quarter 2013 Operating Highlights

 

U.S. Wireless Service Revenues

 

U.S. wireless service revenues include voice and data service revenues from the Company’s prepaid and postpaid retail operations as well as its wholesale roaming operations. Total service revenues from the U.S. wireless businesses were $122.8 million compared to $135.6 million in the second quarter of 2012, a decrease of 9%.

 

U.S. retail wireless service revenues were $80.7 million, 4% below the $84.0 million reported in the 2012 second quarter.  This decrease was due mainly to a year-over-year shift in subscriber mix from postpaid to lower ARPU prepaid offers, which offset overall subscriber growth. At the end of the 2013 second quarter, the Company had approximately 591,000 U.S. retail wireless subscribers, an increase of 1% from the approximately 584,000 subscribers the Company had at the end of last year’s second quarter. Positive net subscriber additions in the Company’s U.S. retail wireless business were driven by growth in prepaid subscribers.  Of the total subscribers at June 30, 2013, approximately 409,000 were postpaid subscribers and approximately 182,000 were prepaid subscribers. (2)

 

U.S. wholesale wireless revenues were $42.0 million, a decrease of 18% from the $51.6 million reported in the second quarter of 2012. Wholesale revenues declined in the Alltel markets as a result of roaming partners reducing their reliance on the Company for coverage.  The Company’s legacy wholesale markets experienced a slight increase in revenue due to increased data traffic despite the sale of certain spectrum and related cell sites in the Midwest U.S. in the fourth quarter of 2012.  Data revenues accounted for 56% of wholesale wireless revenues for the quarter, compared to 51% a year earlier.

 

International Wireless Revenues

 

International wireless revenues include retail and wholesale voice and data wireless revenues from international operations in Bermuda and the Caribbean. International wireless revenues were $21.8 million, an increase of 8% over the $20.3 million reported in the second quarter of 2012.  This increase was largely due to subscriber and other retail growth, as well as increased roaming revenues, within the Island Wireless segment. At the end of the second quarter of 2013, the Company had approximately 333,000 international wireless subscribers of which 88% were prepaid subscribers.  This is an increase of approximately 2% from approximately 325,000 wireless subscribers at the end of the second quarter of 2012.

 



 

Wireline Revenues

 

Wireline revenues are primarily generated by the Company’s wireline operations in Guyana, including international telephone calls into and out of that country, its integrated voice and data and wholesale transport operations in New England and New York State, and by its wholesale long-distance voice services. Wireline revenues were $20.9 million, a 1% decrease from the $21.1 million recorded in the second quarter of 2012.  The decrease was primarily a result of decrease in international voice calls into Guyana, largely offset by increased data revenue in that country and increases in wholesale long-distance voice services.

 

Reportable Operating Segments

 

The Company has four reportable segments: (i) U.S. Wireless; (ii) International Integrated Telephony, which operates in Guyana; (iii) Island Wireless, which generates its revenues and has its assets located in Bermuda and the Caribbean (including the U.S. Virgin Islands); and (iv) U.S. Wireline. Financial data on our reportable operating segments for the three months ended June 30, 2013 are as follows (in thousands):

 

 

 

U.S.
Wireless

 

International
Integrated
Telephony

 

Island
Wireless

 

U.S.
Wireline

 

Reconciling
Items (3)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

130,290

 

$

22,208

 

$

16,962

 

$

5,612

 

$

 

$

175,072

 

Adjusted EBITDA

 

34,730

 

10,770

 

4,861

 

670

 

(5,130

)

45,901

 

Operating Income (Loss)

 

17,250

 

6,235

 

2,301

 

(124

)

(5,525

)

20,137

 

 

On January 22, 2013, the Company announced a definitive agreement to sell its U.S. retail wireless business operating under the Alltel name to AT&T for a cash purchase price of $780.0 million.  This business is reported as part of the U.S. Wireless segment, and for the second quarter of 2013 it generated revenues, adjusted EBITDA and operating income of approximately $103.4 million, $17.8 million and $3.8 million, respectively.  For the six months ended June 30, 2013, the Alltel business generated revenues, adjusted EBITDA and operating income of approximately $211.5 million, $38.0 million and $9.1 million, respectively. (3)

 

Balance Sheet and Cash Flow Highlights

 

Cash and cash equivalents at June 30, 2013 were $111.4 million.  Long-term debt was $243.6 million.  Net cash provided by operating activities was $10.5 million for the second quarter of 2013 and $35.4 million for the first six months of 2013.  Capital expenditures were $31.3 million for the second quarter.  The Company expects full year 2013 capital expenditures in the range of $80 to $90 million, assuming the Alltel sale transaction is completed as anticipated in 2013.

 


(1)  See Table 5 for reconciliation of Net Income to Adjusted EBITDA.

(2)  Additional operating data on the Company’s U.S. retail wireless business can be found in Table 4.

(3)  Reconciling items are comprised of corporate general and administrative costs and transaction-related charges

(4)  See Table 6 for reconciliation of operating income to Adjusted EBITDA for the Alltel business.

 



 

Conference Call Information

 

Atlantic Tele-Network will host a conference call on Wednesday, July 31, 2013 at 9:30 a.m. Eastern Time (ET) to discuss its 2013 second quarter results. The call will be hosted by Michael Prior, President and Chief Executive Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are US/Canada: (877) 734-4582 and International: (678) 905-9376, conference ID 20381500. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on July 31, 2013.

 

About Atlantic Tele-Network

 

Atlantic Tele-Network, Inc. (NASDAQ:ATNI), headquartered in Beverly, Massachusetts, provides telecommunications services to rural, niche and other under-served markets and geographies in the United States, Bermuda and the Caribbean. Through our operating subsidiaries, we provide both wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, local exchange services and broadband internet services and are the owner and operator of terrestrial and submarine fiber optic transport systems. For more information, please visit www.atni.com.

 

Cautionary Language Concerning Forward Looking Statements

 

This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations; our proposed sale of our Alltel operations and the expected timetable for the completion of such sale; the competitive environment in our key markets, demand for our services and industry trends; the outcome of regulatory matters; our continued access to the credit and capital markets; the pace of our network expansion and improvement, including our level of estimated future capital expenditures and our realization of the benefits of these investments; 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 our operations, including operating margins, wholesale revenues, and the future retention and turnover of our subscriber base; (2) our ability to receive requisite regulatory consents and approvals and satisfy other conditions needed to complete our proposed sale of our Alltel operations; (3) our ability to maintain favorable roaming arrangements; (4) increased competition; (5) economic, political and other risks facing our foreign operations; (6) the loss of certain FCC and other licenses, USF funds or other regulatory changes affecting our businesses; (7) rapid and significant technological changes in the telecommunications industry; (8) any loss of any key members of management; (9) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure and retail wireless business; (10) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (11) the occurrence of severe weather and natural catastrophes; (12) our continued access to capital and credit markets; and (13) our ability to realize the value that we believe exists in our businesses. 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, 2012, filed with the SEC on March 18, 2013, in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2013, filed with the SEC on May 10, 2013 and the other reports we file from time to time with the SEC. The Company undertakes no obligation 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.

 



 

Use of Non-GAAP Financial Measures

 

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release also contains non-GAAP financial measures. Specifically, ATN has presented Adjusted EBITDA and ARPU measures. Adjusted EBITDA is defined as net income attributable to ATN stockholders before interest, taxes, depreciation and amortization, transaction-related charges, impairment of intangible assets, gain on disposition of long-lived assets, other income or expense, net income attributable to non-controlling interests, and equity in earnings of unconsolidated affiliates. ARPU, or monthly average revenue per subscriber/unit, is computed by dividing total retail service revenues per period by the weighted average number of subscribers with service during that period, and then dividing that result by the number of months in the period.  The Company believes that the inclusion of these non-GAAP financial measures helps investors to gain a meaningful understanding of the Company’s core operating results and enhance comparing such performance with prior periods. ATN’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measures included in this news release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of the non-GAAP financial measures used in this news release to the most directly comparable GAAP financial measures are set forth in the text of, and the accompanying tables to, this press release.

 


 


 

Table 1

 

ATLANTIC TELE-NETWORK, INC.

Unaudited Condensed Consolidated Balance Sheets

(in Thousands)

 

 

 

June 30,

 

December 31,

 

 

 

2013

 

2012

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

111,438

 

$

136,647

 

Other current assets

 

130,275

 

119,504

 

 

 

 

 

 

 

Total current assets

 

241,713

 

256,151

 

 

 

 

 

 

 

Property, plant and equipment, net

 

450,832

 

450,547

 

Goodwill and other intangible assets, net

 

176,678

 

180,904

 

Other assets

 

23,289

 

23,273

 

 

 

 

 

 

 

Total assets

 

$

892,512

 

$

910,875

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

Current portion of long-term debt

 

$

19,600

 

$

15,680

 

Other current liabilities

 

116,211

 

143,525

 

 

 

 

 

 

 

Total current liabilities

 

135,811

 

159,205

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

243,632

 

250,900

 

Other liabilities

 

102,684

 

106,530

 

 

 

 

 

 

 

Total liabilities

 

482,127

 

516,635

 

 

 

 

 

 

 

Total Atlantic Tele-Network, Inc.’s stockholders’ equity

 

349,546

 

334,146

 

Non-controlling interests

 

60,839

 

60,094

 

 

 

 

 

 

 

Total equity

 

410,385

 

394,240

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

892,512

 

$

910,875

 

 



 

Table 2

 

ATLANTIC TELE-NETWORK, INC.

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, Except per Share Data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2013

 

2012 (a)

 

2013

 

2012 (a)

 

Revenues:

 

 

 

 

 

 

 

 

 

U.S. wireless:

 

 

 

 

 

 

 

 

 

Retail

 

$

80,733

 

$

84,002

 

$

162,015

 

$

170,686

 

Wholesale

 

42,030

 

51,553

 

82,332

 

98,937

 

International wireless

 

21,837

 

20,271

 

43,267

 

39,171

 

Wireline

 

20,877

 

21,074

 

41,441

 

42,804

 

Equipment and other

 

9,595

 

8,596

 

18,885

 

16,985

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

175,072

 

185,496

 

347,940

 

368,583

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Termination and access fees

 

32,857

 

38,994

 

67,093

 

79,536

 

Engineering and operations

 

21,781

 

22,469

 

43,932

 

44,434

 

Sales, marketing and customer service

 

28,612

 

31,026

 

58,114

 

63,031

 

Equipment expense

 

24,384

 

22,393

 

48,941

 

43,085

 

General and administrative

 

21,537

 

20,966

 

40,683

 

43,690

 

Transaction-related charges

 

310

 

 

1,092

 

5

 

Depreciation and amortization

 

25,454

 

26,582

 

51,255

 

53,606

 

Gain on disposition of long-lived assets

 

 

 

(1,076

)

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

154,935

 

162,430

 

310,034

 

327,387

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

20,137

 

23,066

 

37,906

 

41,196

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,729

)

(3,904

)

(5,002

)

(7,782

)

Other income (expense)

 

334

 

(346

)

536

 

(282

)

Equity in earnings of unconsolidated affiliates

 

394

 

930

 

976

 

2,331

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(2,001

)

(3,320

)

(3,490

)

(5,733

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

18,136

 

19,746

 

34,416

 

35,463

 

Income taxes

 

6,715

 

7,979

 

13,077

 

14,759

 

 

 

 

 

 

 

 

 

 

 

Net income

 

11,421

 

11,767

 

21,339

 

20,704

 

Net income attributable to non-controlling interests, net of tax

 

(2,564

)

(1,237

)

(3,706

)

(853

)

 

 

 

 

 

 

 

 

 

 

Net income attributable to Atlantic Tele-Network, Inc. stockholders

 

$

8,857

 

$

10,530

 

$

17,633

 

$

19,851

 

 

 

 

 

 

 

 

 

 

 

Net income per weighted average share attributable to Atlantic Tele-Network, Inc. stockholders:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.56

 

$

0.68

 

$

1.13

 

$

1.28

 

Diluted

 

$

0.56

 

$

0.67

 

$

1.12

 

$

1.27

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

15,706

 

15,535

 

15,647

 

15,495

 

Diluted

 

15,821

 

15,609

 

15,756

 

15,581

 

 


(a)         Certain reclassifications have been made to prior period amounts to conform to the current presentation

 



 

Table 3

 

ATLANTIC TELE-NETWORK, INC.

Unaudited Condensed Consolidated Cash Flow Statement

(in Thousands)

 

 

 

Six months ended June 30,

 

 

 

2013

 

2012

 

 

 

 

 

 

 

Net income

 

$

21,339

 

$

20,704

 

Depreciation and amortization

 

51,255

 

53,606

 

Change in operating assets and liabilities

 

(42,919

)

(2,459

)

Other

 

5,760

 

7,757

 

 

 

 

 

 

 

Net cash provided by operating activities

 

35,435

 

79,608

 

 

 

 

 

 

 

Capital expenditures

 

(52,183

)

(32,272

)

Proceeds from disposition of long-lived assets

 

1,500

 

 

 

 

 

 

 

 

Net cash used by investing activities

 

(50,683

)

(32,272

)

 

 

 

 

 

 

Repayments of revolver loan, net of borrowings

 

 

(28,156

)

Borrowings under term loans

 

 

275,000

 

Principal repayments of term loans

 

(3,920

)

(252,953

)

Dividends paid on common stock

 

(3,919

)

(7,119

)

Distributions to non-controlling interests

 

(2,562

)

(929

)

Other

 

440

 

(2,077

)

 

 

 

 

 

 

Net cash used by financing activities

 

(9,961

)

(16,234

)

 

 

 

 

 

 

Net change in cash and cash equivalents

 

(25,209

)

31,102

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

136,647

 

48,735

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

111,438

 

$

79,837

 

 



 

Table 4

 

ATLANTIC TELE-NETWORK, INC.

Operating Data for U.S. Retail Wireless Operations

 

Three Months Ended:

 

JUN 2012

 

SEP 2012

 

DEC 2012

 

MAR 2013

 

JUN 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Subscribers

 

578,585

 

583,547

 

585,418

 

587,766

 

589,670

 

Prepay

 

130,981

 

141,452

 

153,108

 

162,656

 

177,096

 

Postpay

 

447,604

 

442,095

 

432,310

 

425,110

 

412,574

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Additions

 

55,448

 

66,539

 

69,719

 

73,331

 

70,735

 

Prepay

 

31,868

 

40,779

 

39,843

 

47,212

 

42,631

 

Postpay

 

23,580

 

25,760

 

29,876

 

26,119

 

28,104

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Additions

 

4,962

 

1,871

 

2,348

 

1,904

 

1,058

 

Prepay

 

10,471

 

11,656

 

9,548

 

14,440

 

4,804

 

Postpay

 

(5,509

)

(9,785

)

(7,200

)

(12,536

)

(3,746

)

 

 

 

 

 

 

 

 

 

 

 

 

Ending Subscribers

 

583,547

 

585,418

 

587,766

 

589,670

 

590,728

 

Prepay

 

141,452

 

153,108

 

162,656

 

177,096

 

181,900

 

Postpay

 

442,095

 

432,310

 

425,110

 

412,574

 

408,828

 

 

ATLANTIC TELE-NETWORK, INC.

U.S. Retail Wireless Operations Key Performance Indicators

 

Three Months Ended:

 

JUN 2012

 

SEP 2012

 

DEC 2012

 

MAR 2013

 

JUN 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Subscribers (weighted monthly)

 

580,441

 

583,607

 

585,519

 

586,376

 

588,401

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Average Revenues per Subscriber/Unit (ARPU)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

· Subscriber ARPU

 

$

47.63

 

$

46.87

 

$

46.79

 

$

45.34

 

$

44.77

 

 

 

 

 

 

 

 

 

 

 

 

 

· Postpaid Subscriber ARPU

 

$

53.96

 

$

54.52

 

$

55.16

 

$

54.49

 

$

55.18

 

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Postpay Subscriber Churn

 

2.18

%

2.70

%

2.88

%

3.07

%

2.59

%

 

 

 

 

 

 

 

 

 

 

 

 

Monthly Blended Subscriber Churn

 

2.90

%

3.70

%

3.84

%

4.07

%

3.95

%

 



 

Table 5

 

ATLANTIC TELE-NETWORK, INC.

Reconciliation of Non-GAAP Measures

(In Thousands)

 

Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended June 30, 2012 and 2013

 

Three Months Ended June 30, 2012

 

 

 

U.S Wireless

 

International
Integrated
Telephony

 

Island
Wireless

 

U.S. Wireline

 

Reconciling
Items

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Atlantic Tele-Network, Inc. stockholders

 

 

 

 

 

 

 

 

 

 

 

$

10,530

 

Net loss attributable to non-controlling interests, net of tax

 

 

 

 

 

 

 

 

 

 

 

1,237

 

Income taxes

 

 

 

 

 

 

 

 

 

 

 

7,979

 

Equity in earnings of unconsolidated affiliates

 

 

 

 

 

 

 

 

 

 

 

(930

)

Other income

 

 

 

 

 

 

 

 

 

 

 

346

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

3,904

 

Operating income (loss)

 

$

23,978

 

$

4,141

 

$

279

 

$

(666

)

$

(4,666

)

$

23,066

 

Depreciation and amortization

 

18,324

 

4,490

 

2,783

 

693

 

292

 

26,582

 

Adjusted EBITDA

 

$

42,302

 

$

8,631

 

$

3,062

 

$

27

 

$

(4,374

)

$

49,648

 

 

Three Months Ended June 30, 2013

 

 

 

U.S Wireless

 

International
Integrated
Telephony

 

Island
Wireless

 

U.S. Wireline

 

Reconciling
Items

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Atlantic Tele-Network, Inc. stockholders

 

 

 

 

 

 

 

 

 

 

 

$

8,857

 

Net income attributable to non-controlling interests, net of tax

 

 

 

 

 

 

 

 

 

 

 

2,564

 

Income taxes

 

 

 

 

 

 

 

 

 

 

 

6,715

 

Equity in earnings of unconsolidated affiliates

 

 

 

 

 

 

 

 

 

 

 

(394

)

Other income

 

 

 

 

 

 

 

 

 

 

 

(334

)

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

2,729

 

Operating income (loss)

 

$

17,250

 

$

6,235

 

$

2,301

 

$

(124

)

$

(5,525

)

$

20,137

 

Depreciation and amortization

 

17,170

 

4,535

 

2,560

 

794

 

395

 

25,454

 

Transaction-related charges

 

310

 

 

 

 

 

310

 

Adjusted EBITDA

 

$

34,730

 

$

10,770

 

$

4,861

 

$

670

 

$

(5,130

)

$

45,901

 

 



 

Reconciliation of Net Income to Adjusted EBITDA for the Six Months Ended June 30, 2012 and 2013

 

Six Months Ended June 30, 2012

 

 

 

U.S Wireless

 

International
Integrated
Telephony

 

Island
Wireless

 

U.S. Wireline

 

Reconciling
Items

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Atlantic Tele-Network, Inc. stockholders

 

 

 

 

 

 

 

 

 

 

 

$

19,851

 

Net loss attributable to non-controlling interests, net of tax

 

 

 

 

 

 

 

 

 

 

 

853

 

Income taxes

 

 

 

 

 

 

 

 

 

 

 

14,759

 

Equity in earnings of unconsolidated affiliates

 

 

 

 

 

 

 

 

 

 

 

(2,331

)

Other income

 

 

 

 

 

 

 

 

 

 

 

282

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

7,782

 

Operating income (loss)

 

$

42,900

 

$

10,377

 

$

(1,362

)

$

(1,089

)

$

(9,630

)

$

41,196

 

Depreciation and amortization

 

37,026

 

9,017

 

5,569

 

1,438

 

556

 

53,606

 

Transaction-related charges

 

 

 

 

 

5

 

5

 

Adjusted EBITDA

 

$

79,926

 

$

19,394

 

$

4,207

 

$

349

 

$

(9,069

)

$

94,807

 

 

Six Months Ended June 30, 2013

 

 

 

U.S Wireless

 

International
Integrated
Telephony

 

Island
Wireless

 

U.S. Wireline

 

Reconciling
Items

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Atlantic Tele-Network, Inc. stockholders

 

 

 

 

 

 

 

 

 

 

 

$

17,633

 

Net income attributable to non-controlling interests, net of tax

 

 

 

 

 

 

 

 

 

 

 

3,706

 

Income taxes

 

 

 

 

 

 

 

 

 

 

 

13,077

 

Equity in earnings of unconsolidated affiliates

 

 

 

 

 

 

 

 

 

 

 

(976

)

Other income

 

 

 

 

 

 

 

 

 

 

 

(536

)

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

5,002

 

Operating income (loss)

 

$

32,267

 

$

12,568

 

$

3,935

 

$

(532

)

$

(10,332

)

$

37,906

 

Depreciation and amortization

 

34,985

 

8,925

 

5,155

 

1,436

 

754

 

51,255

 

Transaction-related charges

 

1,029

 

 

 

 

 

 

 

63

 

1,092

 

Gain on disposition of long-lived assets

 

(1,076

)

 

 

 

 

(1,076

)

Adjusted EBITDA

 

$

67,205

 

$

21,493

 

$

9,090

 

$

904

 

$

(9,515

)

$

89,177

 

 



 

Table 6

 

ATLANTIC TELE-NETWORK, INC.

Reconciliation of Operating Income to Adjusted EBITDA for the Alltel Business

(In Thousands)

 

 

 

For the Three
Months
Ended June
30, 2013

 

For the Six
Months
Ended June
30, 2013

 

 

 

 

 

 

 

Operating income

 

$

3,844

 

$

9,143

 

Depreciation and amortization

 

13,645

 

27,850

 

Transaction-related charges

 

310

 

1,029

 

Adjusted EBITDA

 

$

17,799

 

$

38,022