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ATN Reports Fourth Quarter and Full Year 2016 Results

Fourth Quarter Financial Highlights:

  • Revenues: $128.5 million
  • Adjusted EBITDA1: $34.1 million
  • Operating income: $10.9 million
  • Net income attributable to ATN’s stockholders: $2.3 million, or $0.14 per diluted share
  • Cash flow from operating activities for full year 2016 was $111.7 million which includes the negative impact of funding a $22.5 million pension obligation in lieu of purchase consideration paid to the seller for our U.S. Virgin Islands acquisition

BEVERLY, Mass., Feb. 22, 2017 (GLOBE NEWSWIRE) -- ATN (NASDAQ:ATNI) today reported results for the fourth quarter and year ended December 31, 2016. Unless otherwise indicated, the discussion of the Company’s results is focused on its continuing operations, and comparisons are to the same period in the prior year. In the first quarter of 2016, the Company changed its segment reporting structure and an unaudited recast of financial information for the eight quarterly periods in the fiscal years ending December 31, 2014 and 2015 can be found in the Company’s Form 8-K filing dated April 12, 2016.

Business Review and Outlook

“Fourth quarter performance represented a solid finish to a year in which we significantly expanded the scope of ATN’s operations through synergistic acquisitions in telecom services and strategic and organic initiatives in renewable energy,” said Michael Prior, Chief Executive Officer. “Revenue contributions in the fourth quarter from our 2016 telecom acquisitions in Bermuda and U.S. Virgin Islands were consistent with plan, and our first India renewable energy projects, while not generating revenue yet, are set to deliver electricity production in the 2017 first quarter.

“We are pleased with the market positioning of our international telecom operations. Revenues have remained steady during the integration of our Bermuda and USVI acquisitions, providing a solid platform for long term development and cash flows. Our early efforts have been focused on improving network performance and delivering service upgrades to ensure a superior customer experience and further strengthen our leading market positions. We will continue to make network investments in all our international markets in 2017, with a significant decline in those capital expenditures expected for 2018.

“U.S. wholesale wireless continued to face the effect of lower rates, offset in part by higher retail revenues. The net result was a modest decline in revenues and EBITDA in the fourth quarter compared to last year. This quarter-over-quarter trend is likely to be a factor again in 2017, but the impact should be less pronounced, as rate reductions stabilize and we benefit from additional operating efficiencies.

“We were delayed on our build schedule in India due in large part to the government imposed currency reform, but we are moving forward with new construction and anticipate having 50MW operational in the second quarter and potentially twice that by year end. We are exploring financing alternatives on completed projects, which will help determine the pace and extent of our construction of new solar facilities in India for the second half of the year. At present, we still see an attractive opportunity to build more than 250MW of distributed generation projects in India over the next two years.

“More broadly, we expect 2017 to be a year of continued progress for ATN. We have a strong and growing base of operating cash flows, which reached approximately $112 million, inclusive of funding a $22 million pension obligation in lieu of purchase consideration paid to the seller for our U.S. Virgin Islands acquisition, for 2016, and significant remaining capacity on our balance sheet. We have recently completed or expect to complete some smaller strategic acquisitions and dispositions which should improve both of those attributes. Our telecom operations consist of a balanced and diversified portfolio of wireless and wireline assets, many of which are in markets where we have significant operating synergies that may be realized over time. Our India solar projects do not rely on government subsidies for economic returns, and while pricing per kWh is lower than in the U.S., we expect our India operations to generate more than $2 million in very high incremental margin revenue in the 2017 fourth quarter and to grow steadily from there,” Mr. Prior concluded.

Fourth Quarter and Full Year 2016 Financial Results

Fourth quarter 2016 revenues were $128.5 million, a 55% increase from the $82.9 million reported for the fourth quarter of 2015. Revenue growth resulted primarily from a $46.5 million, or 122%, increase in our International Telecom segment revenues mostly due to the impact of our recent Bermuda and U.S. Virgin Islands acquisitions. Adjusted EBITDA1 for the fourth quarter was $34.1 million, 33% above the prior year period, primarily from the impact of the recent acquisitions and reduced operating expenses in Guyana and in U.S. Telecom, partially offset by a decline in Renewable Energy operating results. Operating income for the fourth quarter, which included a $10.0 million increase in depreciation and amortization expense primarily due to the recent acquisitions, was $10.9 million, an increase of 33% when compared to the prior year period.

Net income attributable to ATN’s stockholders for the fourth quarter was $2.3 million or $0.14 per diluted share, a decline of 44% compared with the prior year period of $4.2 million, or $0.26 per diluted share due to increased depreciation and amortization expense, and higher net interest expense related to the recent acquisitions and investments.

Revenues for the full year 2016 were $457.0 million, a 29% increase from the $355.4 million reported for the same period of 2015. Adjusted EBITDA1 for the full year 2016 was $149.0 million, up 7% from the prior year. Operating income of $50.8 million for the full year 2016 declined from the prior year’s $78.6 million due in large part to a $19.1 million increase in depreciation and amortization, a $9.1 million increase in transaction-related expenses associated with the acquisitions in 2016, and an $11.4 million impairment charge in the year. Net income attributable to ATN’s stockholders for the full year 2016 was $12.5 million or $0.77 per diluted share, compared with the prior year $16.9 million, or $1.05 per diluted share.

Fourth Quarter 2016 Operating Highlights

The Company has three reportable segments: (i) U.S. Telecom; (ii) International Telecom; and (iii) Renewable Energy.

U.S. Telecom

U.S. Telecom revenues consist of wireless revenues from our voice and data wholesale roaming operations and our smaller retail operations in the Southwestern United States and wireline revenues from our wholesale transport and enterprise business in the Northeastern United States. Total U.S. Telecom segment revenues were $39.0 million in the fourth quarter of 2016, a 1% decrease from the $39.3 million reported in the fourth quarter of 2015. U.S. Wireless revenues declined 5% to $30.9 million compared with $32.4 million in the prior year quarter, due mostly to lower wholesale roaming rates, partially offset by growth in data traffic volumes and low margin retail wireless revenues. U.S. Wireline revenues were $7.7 million, up from $6.3 million in the prior year. The Company ended the fourth quarter of 2016 with 1,006 domestic base stations in service compared to 877 at the end of last year’s fourth quarter.

U.S. Telecom Adjusted EBITDA1 of $16.4 million in the fourth quarter of 2016 increased 5% compared to the prior year’s $15.7 million. The increase was primarily due to a reduction in segment operating expenses which offset lower wholesale wireless revenues in the current year quarter.

International Telecom

International Telecom consists of a broad range of information and communications services including wireline and wireless data, internet, voice and video service revenues from our operations in Bermuda and the Caribbean including the U.S. Virgin Islands. International Telecom revenues were $84.7 million in the fourth quarter of 2016, a 122% increase from the $38.2 million reported in the fourth quarter of 2015. Our recent acquisitions in Bermuda and the U.S. Virgin Islands added $47.3 million of incremental revenues during the current year quarter and were responsible for this increase.

International Telecom Adjusted EBITDA1 of $21.1 million in the fourth quarter increased 77% from $11.9 million in the prior year period. The increase is the result of the 2016 acquisitions and lower year over year operating expenses in Guyana.

Renewable Energy

Renewable Energy segment revenues are generated principally by the sale of energy and solar renewable energy credits from our 28 commercial solar projects in the United States. For the fourth quarter of 2016, revenues from our renewable energy business were $4.8 million, down 11% from the $5.4 million in the prior year mostly due to the expiration of certain renewable energy credits in California. Adjusted EBITDA1 for the Renewable Energy segment was $2.8 million in the fourth quarter, a decrease of 27% from the prior year quarter due to the expiration of those credits and increased operating expenses from our new solar business in India prior to generating revenue. The expiry of that credit revenue will lower domestic renewable energy revenue in the coming quarters but both revenue and EBITDA for this segment will benefit as we begin generating revenue from the facilities under construction in India. The construction delays in the fourth quarter of 2016 have pushed back the timeline on the revenue and EBITDA contribution of the new solar facilities in India

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents at December 31, 2016 were $269.7 million. In addition, the Company held $9.2 million of short-term investments and $18.6 million of restricted cash. Net cash provided by operating activities was $111.7 million for the full year of 2016, compared with $139.2 million for the full year of 2015. The decrease in net cash provided by operating activities is due to lower net income in 2016, including the impact of transaction and restructuring charges, the funding of a $22.5 million pension obligation in lieu of purchase consideration paid to the seller for our U.S. Virgin Islands acquisition, and changes in deferred income taxes. Capital expenditures were $124.3 million for the full year 2016, which included $22.6 million spent on renewable energy projects. The Company expects full year 2017 capital expenditures for its Telecom businesses, including the recent Bermuda and USVI acquisitions, to be in the range of $95 million to $115 million. Capital expenditures in the domestic and international telecom segments are higher than what we would expect in the ordinary course due to concurrent network expansions and upgrades in multiple markets. These projects include extensive fiber builds and upgrades and market-wide mobile data network upgrades. Once complete, we expect aggregate capital expenditures in existing telecom markets to decline significantly in 2018. In addition, capital expenditures for our Renewable Energy business are expected to be in the range of $40 million to $60 million for the full year 2017, primarily related to ongoing construction of our solar projects in India.

Conference Call Information

ATN will host a conference call on Thursday, February 23, 2017 at 9:30 a.m. Eastern Time (ET) to discuss its fourth quarter and year ended 2016 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 70892859. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on Thursday, February 23, 2017.

About ATN

ATN International, 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 and owns and operates solar power systems in various locations in the United States and India. Through our operating subsidiaries, we (i) provide both wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, high speed internet services, video services and local exchange services, (ii) provide distributed solar electric power to corporate, utility and municipal customers and (iii) 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; the competitive environment in our key markets, demand for our services and industry trends; the pace of expansion and improvement of our telecommunications network and renewable energy operations including our level of estimated future capital expenditures and our realization of the benefits of these investments; the anticipated timing of the closing of the sale of our wireline business in the Northeastern United States; the anticipated timing of our build schedule and the commencement of energy production of our India renewable energy projects; 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) our ability to operate our newly acquired businesses in Bermuda and the U.S. Virgin Islands and integrate these operations into our existing operations; (2) the general performance of our operations, including operating margins, revenues, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power; (3) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables business; (4) economic, political and other risks facing our operations; (5) our ability to maintain favorable roaming arrangements; (6) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address rapid and significant technological changes in the telecommunications industry; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to find investment or acquisition or disposition opportunities that fit our strategic goals for the Company; (9) increased competition; (10) our ability to expand our renewable energy business; (11) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) the occurrence of weather events and natural catastrophes; (14) our continued access to capital and credit markets; (15) the risk of currency fluctuation for those markets in which we operate: (16) our ability to realize the value that we believe exists in our businesses; and (17) our ability to receive requisite regulatory consents and approvals and satisfy other conditions needed to complete the pending sale of our wireline business in the Northeastern United States. 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, 2015, filed with the SEC on February 29, 2016 and the Company’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016, and September 30, 2016 filed with the SEC on May 10, 2016, August 9, 2016, and November 10, 2016, respectively, and other reports we file 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.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has presented an Adjusted EBITDA measure. Adjusted EBITDA is defined as net income attributable to ATN stockholders before income from discontinued operations, bargain purchase gain, impairment of long-lived assets, restructuring charges, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, and net income attributable to non-controlling interests. 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 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 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 used in this press release to the most directly comparable GAAP financial measure is set forth in the text of, and the accompanying tables to, this press release.

Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
December 31, December 31,
2016 2015
Assets:
Cash and cash equivalents$ 269,721 $ 392,045
Restricted cash 524 824
Short-term investments 9,237 -
Other current assets 88,294 75,623
Total current assets 367,776 468,492
Long-term restricted cash 18,113 5,477
Property, plant and equipment, net 647,712 373,503
Goodwill and other intangible assets, net 128,084 90,043
Other assets 36,533 7,489
Total assets$ 1,198,218 $ 945,004
Liabilities and Stockholders’ Equity:
Current portion of long-term debt$ 12,440 $ 6,284
Taxes payable 13,531 9,181
Other current liabilities 124,202 68,890
Total current liabilities 150,173 84,355
Long-term debt, net of current portion$ 144,383 $ 26,575
Deferred income taxes 47,072 45,406
Other long-term liabilities 47,871 26,944
Total long-term liabilities 239,326 98,925
Total liabilities 389,499 183,280
Total ATN International, Inc.’s stockholders’ equity 676,495 680,299
Non-controlling interests 132,224 81,425
Total equity 808,719 761,724
Total liabilities and stockholders’ equity$ 1,198,218 $ 945,004

Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
Three Months Ended Year Ended
December 31, December 31,
2016 2015 2016 2015
Revenues:
Wireless$ 51,498 $ 52,263 $ 228,798 $ 237,042
Wireline 65,777 21,988 188,019 86,485
Renewable energy 4,672 5,409 21,608 21,040
Equipment and other 6,585 3,256 18,578 10,802
Total revenue 128,532 82,916 457,003 355,369
Operating expenses:
Termination and access fees 35,754 19,862 116,427 77,806
Engineering and operations 16,632 10,991 52,902 39,582
Sales, marketing and customer service 8,663 6,264 31,050 23,898
Equipment expense 4,037 4,764 14,342 14,803
General and administrative 29,344 15,447 93,293 59,436
Transaction-related charges 123 4,330 16,279 7,182
Restructuring charges - - 1,785 -
Depreciation and amortization 23,067 13,077 75,980 56,890
Impairment of long-lived assets - - 11,425 -
Bargain purchase gain - - (7,304) -
(Gain) loss on disposition of long-lived assets - - 27 (2,823)
Total operating expenses 117,620 74,735 406,206 276,774
Operating income 10,912 8,181 50,797 78,595
Other income (expense):
Interest expense, net (1,377) (439) (4,123) (2,592)
Loss on deconsolidation of subsidiary - - - (19,937)
Other income, net (944) 21 (300) 135
Other expense, net (2,321) (418) (4,423) (22,394)
Income from continuing operations before income taxes 8,591 7,763 46,374 56,201
Income tax expense 4,433 1,482 21,610 24,137
Income from continuing operations 4,158 6,281 24,764 32,064
Gain on disposal of discontinued operations, net of tax - 702 - 1,092
Net income 4,158 6,983 24,764 33,156
Net income attributable to non-controlling interests, net (1,822) (2,799) (12,223) (16,216)
Net income attributable to ATN International, Inc. stockholders$ 2,336 $ 4,184 $ 12,541 $ 16,940
Basic net income per weighted average share attributable to ATN International, Inc. stockholders:
Income from continuing operations$ 0.14 $ 0.22 $ 0.78 $ 0.99
Income from discontinued operations - 0.04 - 0.07
Net income $ 0.14 $ 0.26 $ 0.78 $ 1.06
Diluted net income per weighted average share attributable to ATN International, Inc. stockholders:
Income from continuing operations$ 0.14 $ 0.22 $ 0.77 $ 0.98
Income from discontinued operations - 0.04 - 0.07
Net income $ 0.14 $ 0.26 $ 0.77 $ 1.05
Weighted average common shares outstanding:
Basic 16,139 16,061 16,131 16,022
Diluted 16,223 16,179 16,227 16,142

Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
Year Ended December 31,
2016 2015
Net income$ 24,764 $ 33,156
Income from discontinued operations - (1,092)
Depreciation and amortization 75,980 56,890
Stock-based compensation 6,410 4,975
Loss on deconsolidation of subsidiary - 19,937
Bargain purchase gain (7,304) -
(Gain) loss on disposition of long-lived assets 27 (2,823)
Impairment of long-lived assets 11,425 -
Deferred income taxes (5,136) 17,869
Pension funding required by Innovative acquisition (22,494) -
Change in prepaid and accrued income taxes 21,497 9,478
Change in other operating assets and liabilities 2,959 (1,230)
Other non-cash activity 3,528 1,920
Net cash provided by operating activities of continuing operations 111,656 139,080
Net cash provided by operating activities of discontinued operations - 158
Net cash provided by operating activities 111,656 139,238
Capital expenditures (124,282) (64,753)
Acquisition of businesses and non-controlling interests, net of acquired cash of $12,611 and $6,571 (153,440) (11,968)
Purchases of spectrum licenses, including deposits (10,860) -
Net proceeds from sale of assets 1,424 5,873
Purchase of short-term investments (7,422) -
Purchase of securities (2,000) -
Change in restricted cash (12,108) 38,877
Net cash used in investing activities (308,688) (31,971)
Dividends paid on common stock (20,965) (19,070)
Proceeds from new borrowings 125,800 -
Distributions to non-controlling interests (8,632) (16,514)
Repayments of long-term debt (33,564) (6,017)
Purchases of common stock (4,114) (1,893)
Investments made by minority shareholders 22,409 -
Other (5,600) 2,056
Net cash provided by (used in) financing activities 75,334 (41,438)
Effect of foreign currency exchange rates on cash and cash equivalents (626) -
Net change in cash and cash equivalents (122,324) 65,829
Cash and cash equivalents, beginning of period 392,045 326,216
Cash and cash equivalents, end of period$ 269,721 $ 392,045

Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands, Except Operational Data)
For the three months ended December 31, 2016 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Reconciling
Items
Total
Statement of Operations Data:
Revenue
Wireless$ 30,859 $ 20,639 $ - $ - $ 51,498
Wireline 7,655 58,122 - - 65,777
Renewable Energy - - 4,672 - 4,672
Equipment and Other 510 5,941 134 - 6,585
Total Revenue$ 39,024 $ 84,702 $ 4,806 $ - $ 128,532
Operating Income (Loss)$ 9,485 $ 8,011 $ 488 $ (7,072)$ 10,912
Non-controlling interest ( net income or (loss) )$ (946)$ (588)$ (288)$ - $ (1,822)
Non GAAP measure:
Adjusted EBITDA $ 16,446 $ 21,127 $ 2,762 $ (6,233)$ 34,102
Statement of Cash Flow Data:
Capital expenditures$ 5,273 $ 26,265 $ 12,290 $ 1,999 $ 45,827
Balance Sheet Data:
Cash, cash equivalents and investments$ 22,235 $ 97,681 $ 27,378 $ 131,664 $ 278,958
Total current assets 50,983 143,202
37,439 136,152 367,776
Fixed assets, net 129,274 372,741 130,268 15,429 647,712
Total assets 240,006 597,454 190,253 170,505 1,198,218
Total current liabilities 23,162 95,570 12,603 18,838 150,173
Total debt - 91,316 65,507 - 156,823
International Telecom Operational Data:
Wireline - Voice / Access lines 179,700
Wireline - Data Subscribers 97,400
Wireline - Video Subscribers 60,600
Wireless - Subscribers 310,800
For the three months ended December 31, 2015 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Reconciling
Items
Total
Statement of Operations Data:
Revenue
Wireless$ 32,397 $ 19,866 $ - $ - $ 52,263
Wireline 6,326 15,662 - - 21,988
Renewable Energy - - 5,409 - 5,409
Equipment and Other 582 2,674 - - 3,256
Total Revenue$ 39,305 $ 38,202 $ 5,409 $ - $ 82,916
Operating Income (Loss)$ 10,345 $ 6,754 $ (1,317)$ (7,601)$ 8,181
Non-controlling interest ( net income or (loss) )$ (430)$ (2,098)$ (271)$ - $ (2,799)
Non GAAP measure:
Adjusted EBITDA $ 15,710 $ 11,927 $ 3,800 $ (5,849)$ 25,588
Statement of Cash Flow Data:
Capital expenditures$ 9,956 $ 7,007 $ 13 $ 1,746 $ 18,722
Balance Sheet Data:
Cash, cash equivalents and investments$ 10,639 $ 92,942 $ 7,436 $ 281,028 $ 392,045
Total current assets 41,599 117,712 10,735 298,446 468,492
Fixed assets, net 119,596 134,344 106,560 13,003 373,503
Total assets 225,292 276,580 122,788 320,344 945,004
Total current liabilities 26,399 31,675 7,314 18,967 84,355
Total debt - - 32,859 - 32,859
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the year ended December 31, 2016 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Reconciling
Items
Total
Statement of Operations Data:
Revenue
Wireless$ 148,053 $ 80,745 $- $ - $ 228,798
Wireline 26,448 161,571 - - 188,019
Renewable Energy - - 21,608 - 21,608
Equipment and Other 2,225 15,960 393 - 18,578
Total Revenue$ 176,726 $ 258,276 $ 22,001 $ - $ 457,003
Operating Income (Loss)$ 49,078 $ 36,436 $ (246)$ (34,471)$ 50,797
Non-controlling interest ( net income or (loss) )$ (5,833)$ (4,499)$ (1,890)$ - $ (12,222)
Non GAAP measure:
Adjusted EBITDA $ 84,625 $ 75,358 $ 14,885 $ (25,880)$ 148,988
Statement of Cash Flow Data:
Capital expenditures$ 31,983 $ 62,808 $ 22,615 $ 6,876 $ 124,282
For the year ended December 31, 2015 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Reconciling
Items
Total
Statement of Operations Data:
Revenue
Wireless$ 155,390 $ 81,652 $ - $ - $ 237,042
Wireline 25,241 61,244 - - 86,485
Renewable Energy - - 21,040 - 21,040
Equipment and Other 2,355 8,447 - - 10,802
Total Revenue$ 182,986 $ 151,343 $ 21,040 $ - $ 355,369
Operating Income (Loss)$ 74,459 $ 28,200 $ 6,720 $ (30,784)$ 78,595
Non-controlling interest ( net income or (loss) )$ (5,563)$ (8,908)$ (1,745)$ - $ (16,216)
Non GAAP measure:
Adjusted EBITDA $ 93,876 $ 53,083 $ 15,547 $ (22,662)$ 139,844
Statement of Cash Flow Data:
Capital expenditures$ 37,590 $ 22,804 $ 38 $ 4,321 $ 64,753

Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended December 31, 2016 and 2015
Three Months Ended December 31, 2016
U.S.
Telecom
International
Telecom

Renewable
Energy
Reconciling
Items
Total
Net income attributable to ATN International, Inc. stockholders $ 2,336
Net income attributable to non-controlling interests, net of tax 1,822
Income tax expense 4,433
Other income, net 944
Interest expense, net 1,377
Operating income$ 9,485 $ 8,011 $ 488 $ (7,072)$ 10,912
Depreciation and amortization 6,961 13,116 1,345 1,645 23,067
Transaction-related charges - - 929 (806) 123
Adjusted EBITDA $ 16,446 $ 21,127 $ 2,762 $ (6,233)$ 34,102
Three Months Ended December 31, 2015
U.S.
Telecom
International
Telecom

Renewable
Energy
Reconciling
Items
Total
Net income attributable to ATN International, Inc. stockholders $ 4,184
Net income attributable to non-controlling interests, net of tax 2,799
Gain on disposal of discontinued operations, net of tax (702)
Income tax expense 1,482
Other income, net (21)
Interest expense, net 439
Operating income$ 10,345 $ 6,754 $ (1,317)$ (7,601)$ 8,181
Depreciation and amortization 5,365 5,173 1,207 1,332 13,077
Transaction-related charges - - 3,910 420 4,330
Adjusted EBITDA $ 15,710 $ 11,927 $ 3,800 $ (5,849)$ 25,588
Reconciliation of Net Income to Adjusted EBITDA for the Year Ended December 31, 2016 and 2015
Year Ended December 31, 2016
U.S.
Telecom
International
Telecom

Renewable
Energy
Reconciling
Items
Total
Net income attributable to ATN International, Inc. stockholders $ 12,541
Net income attributable to non-controlling interests, net of tax 12,223
Income tax expense 21,610
Other income, net 300
Interest expense, net 4,123
Operating income$ 49,078 $ 36,436 $ (246)$ (34,471)$ 50,797
Depreciation and amortization 24,471 40,492 4,987 6,030 75,980
(Gain) loss on disposition of long-lived asset - 27 - - 27
Bargain purchase gain - (7,304) - - (7,304)
Impairment of long-lived assets 11,076 349 - - 11,425
Restructuring charges - 1,785 - - 1,785
Transaction-related charges - 3,573 10,144 2,561 16,278
Adjusted EBITDA $ 84,625 $ 75,358 $ 14,885 $ (25,880)$ 148,988
Year Ended December 31, 2015
U.S.
Telecom
International
Telecom

Renewable
Energy
Reconciling
Items
Total
Net income attributable to ATN International, Inc. stockholders $ 16,940
Net income attributable to non-controlling interests, net of tax 16,216
(Gain) loss on disposition of long-lived asset (1,092)
Income tax expense 24,137
Other income, net (135)
Loss on deconsolidation of subsidiary 19,937
Interest expense, net 2,592
Operating income$ 74,459 $ 28,200 $ 6,720 $ (30,784)$ 78,595
Depreciation and amortization 22,240 24,883 4,820 4,947 56,890
(Gain) loss on disposition of long-lived asset (2,823) - - - (2,823)
Transaction-related charges - - 4,007 3,175 7,182
Adjusted EBITDA $ 93,876 $ 53,083 $�� 15,547 $ (22,662)$ 139,844


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


CONTACT: 978-619-1300 Michael T. Prior Chief Executive Officer Justin D. Benincasa Chief Financial Officer

Source:ATN International, Inc.