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ATN Reports Second Quarter 2017 Results

Second Quarter Financial Highlights:

  • Revenues: $123.2 million
  • Adjusted EBITDA1: $38.2 million
  • Operating income: $15.8 million
  • Net income attributable to ATN’s stockholders: $5.9 million, or $0.36 per diluted share
  • Cash flow from operating activities was $65.5 million for the first six months of 2017

BEVERLY, Mass., July 27, 2017 (GLOBE NEWSWIRE) -- ATN (NASDAQ:ATNI) today reported results for the second quarter and six months ended June 30, 2017. 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.

Business Review and Outlook

“Our financial results continue to reflect the benefits of our strategy of managing a diversified infrastructure services portfolio, developed through acquisitions and organic growth,” noted Michael Prior, Chief Executive Officer. “Year-on-year revenue growth was driven by the integration of our 2016 international telecom acquisitions, which more than offset decreases in U.S. Telecom revenues from the sale of our U.S. wireline business last quarter and continued pricing pressures in our wholesale business. Additionally, our legacy international telecom businesses continued to make progress in the second quarter, benefitting from ongoing initiatives to enhance customer offerings and improve operating margins.

“Adjusted EBITDA, as expected, was ahead of last year but lagged revenue growth due to the consolidation of the lower margin 2016 acquisitions and lower margins in our domestic wholesale business.

“In renewable energy, performance of our domestic solar business was similar to the first quarter despite weather related production decreases in the Northeast. In India, we have 40 megawatts operational and are awaiting final regulatory approval before booking the attendant revenues.

“Revenue caps now included in all of our major domestic wireless contracts preclude our ability to offset reduced pricing with growing data usage. As a result, we expect third quarter U.S. Telecom revenues to be similar to those of the second quarter and the fourth quarter to be lower given the typical seasonality. In early 2018 we expect one of our carrier customers to exercise its purchase option to acquire 100 of our sites. The sale of these sites, which is our only remaining option arrangement, together with the impact of the revenue caps and a current lack of footprint expansion opportunities, is expected to result in 2018 revenue for the segment of $105 to $115 million. The impact on 2018 results should be offset in part by reduced operating expenses and lower capital expenditures in both the U.S. and International Telecom segments. The resulting cash flows will provide us with additional balance sheet capacity as we explore opportunities to further build and diversify our portfolio of operating companies.”

Second Quarter 2017 Financial Results

Second quarter 2017 revenues were $123.2 million, a 23% increase from the $100.0 million reported for the second quarter of 2016. Revenue growth for the quarter was primarily from a $31.0 million increase in our International Telecom segment revenues which in turn was mainly due to the impact of the 2016 Bermuda and U.S. Virgin Islands acquisitions. Adjusted EBITDA1 for the second quarter was $38.2 million, 11% above the prior year period, also from the impact of our 2016 acquisitions and improved operating results in existing International Telecom businesses, partially offset by a decline in U.S. Telecom and Renewable Energy operating results. Operating income for the second quarter was $15.8 million which included an additional $5.8 million of depreciation and amortization mostly related to the 2016 acquisitions. Operating income is up $13.9 million over the same quarter last year which included the impact of transaction-related expenses, asset impairments and a bargain purchase gain.

Net income attributable to ATN’s stockholders for the second quarter was $5.9 million or $0.36 per diluted share, an increase over the prior year loss which included the one-time items noted above.

Revenues for the first six months of 2017 were $251.4 million, a 33% increase from the $189.7 million reported for the same period in 2016. Adjusted EBITDA1 for the first six months of 2017 was $80.3 million, an increase of 17% from the prior year. Operating income of $33.6 million for the first six months of 2017 improved from the prior year’s $17.8 million as a result of the impact of the 2016 acquisitions and the transaction-related charges, impairments of assets and restructuring charges that reduced comparable 2016 results. Net income attributable to ATN stockholders was $12.7 million or $0.78 per diluted share, an improvement from the $3.0 million and $0.19 per diluted share for the prior year period.

Second Quarter 2017 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 mainly of wireless revenues from our voice and data wholesale roaming operations and our smaller retail operations in the Southwestern United States, as well as enterprise and wholesale wireline revenues. Total U.S. Telecom segment revenues were $37.0 million in the second quarter of 2017, a 16% decrease from the $43.9 million reported in the second quarter of 2016. U.S. Wireless revenues declined 8% to $34.5 million compared with $37.7 million in the prior year quarter, due mostly to lower contractual wholesale roaming rates and revenue caps. U.S. Wireline revenues decreased to $2.1 million from $5.8 million in the prior year as a result the sale of our Northeastern U.S. wireline business in early March 2017. The Company ended the second quarter of 2017 with 1,041 domestic base stations in service compared to 905 at the end of last year’s second quarter.

U.S. Telecom Adjusted EBITDA1 of $19.4 million in the second quarter of 2017 decreased 10% compared to the prior year’s $21.5 million. The decrease was mainly due to the reduction in wireless revenues and to a lesser extent the sale of our wireline business partially offset by reductions in wireless operating expenses.

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 $81.4 million in the second quarter of 2017, a 62% increase from the $50.4 million reported in the second quarter of 2016. Our acquisitions in Bermuda and the U.S. Virgin Islands in 2016 together added $30.6 million of incremental revenues during the current quarter and were responsible for this increase.

International Telecom Adjusted EBITDA1 of $23.9 million in the second quarter increased 55% from $15.4 million in the prior year period. The increase is the result of the impact of the 2016 acquisitions and improved year over year operating results in some legacy markets.

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 second quarter of 2017, revenues from our renewable energy business were $4.9 million, down 14% from the $5.7 million in the prior year mostly due to the expiration of certain renewable energy credits. Adjusted EBITDA1 for the Renewable Energy segment was $2.7 million in the second quarter, down $1.1 million from the prior year quarter due to the expiration of the renewable energy revenue credits and increased operating expenses from the ramp up of our solar business in India ahead of the offsetting revenue.

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents at June 30, 2017 were $231.6 million. In addition, the Company held $7.8 million of short-term investments and $16.9 million of restricted cash. Net cash provided by operating activities was $65.5 million for the first six months of 2017, compared with $50.7 million for the first six months of 2016. The increase in net cash provided by operating activities is due to the 2017 growth in revenue as a result of the 2016 acquisitions in the U.S. Virgin Islands and Bermuda, partially offset by the net impact of 2016 transaction-related charges and impairments of assets, and changes in working capital. During the first six months of 2017, the Company received $22.6 million from the sale of its U.S. wireline business as well as the sales of other smaller international telecom business lines and paid an additional $36.8 million to purchase U.S. spectrum licenses. Capital expenditures were $78.5 million for the first six months of 2017. The Company expects full year 2017 capital expenditures for its domestic and international telecom businesses to be between the $95 million to $115 million range estimated at the end of last year. Expenditures include major network expansions and upgrades in multiple markets, including the recently acquired Bermuda and U.S. Virgin Islands businesses, and therefore are higher than what we would consider to be ordinary course capital expenditures. These projects include extensive fiber builds and upgrades as well as 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 $30 million to $45 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 Friday, July 28, 2017 at 8:15 a.m. Eastern Time (ET) to discuss its second quarter 2017 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 55443462. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on Friday, July 28, 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 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 both integrate these operations into our existing operations and execute planned network expansions and upgrades; (2) the general performance of our operations, including operating margins, revenues, capital expenditures, 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 and (16) 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, 2016, filed with the SEC on March 1, 2017 and the 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 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 this non-GAAP financial measure 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 measure included in this press release is 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.

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


Table 1
ATN International, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)
June 30, December 31,
20172016
Assets:
Cash and cash equivalents$231,640 $269,721
Restricted cash 714 524
Short-term investments 7,755 9,237
Other current assets 104,226 87,887
Total current assets 344,335 367,369
Long-term restricted cash 16,157 18,113
Property, plant and equipment, net 649,734 647,712
Goodwill and other intangible assets, net 171,945 126,193
Other assets 19,305 38,831
Total assets$1,201,476 $1,198,218
Liabilities and Stockholders’ Equity:
Current portion of long-term debt$9,850 $12,440
Taxes payable 8,326 13,531
Other current liabilities 133,715 124,134
Total current liabilities 151,891 150,105
Long-term debt, net of current portion$149,832 $144,383
Deferred income taxes 48,526 46,622
Other long-term liabilities 30,777 47,939
Total long-term liabilities 229,135 238,944
Total liabilities 381,026 389,049
Total ATN International, Inc.’s stockholders’ equity 681,709 677,055
Non-controlling interests 138,741 132,114
Total equity 820,450 809,169
Total liabilities and stockholders’ equity$1,201,476 $1,198,218

Table 2
ATN International, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
Revenues:
Wireless $54,460 $57,088 $110,690 $115,965
Wireline 61,459 33,976 125,259 56,421
Renewable energy 4,891 5,562 9,791 11,151
Equipment and other 2,435 3,365 5,620 6,139
Total revenue 123,245 99,991 251,360 189,676
Operating expenses:
Termination and access fees 27,915 23,797 58,372 43,514
Engineering and operations 19,362 10,739 39,029 21,249
Sales, marketing and customer service 8,715 7,681 17,737 13,437
Equipment expense 3,008 4,133 5,553 7,362
General and administrative 26,000 19,298 50,349 35,670
Transaction-related charges 148 10,410 826 14,065
Restructuring charges - 1,785 - 1,785
Depreciation and amortization 22,254 16,493 44,747 31,047
Impairment of long-lived asset - 11,076 - 11,076
Bargain purchase gain - (7,304) - (7,304)
(Gain) Loss on disposition of long-lived assets - (29) 1,111 (29)
Total operating expenses 107,402 98,079 217,724 171,872
Operating income 15,843 1,912 33,636 17,804
Other income (expense):
Interest expense, net (1,806) (716) (3,836) (1,194)
Loss on deconsolidation of subsidiary - - (529) -
Other expense (532) (137) (1,053) (123)
Other expense, net (2,338) (853) (5,418) (1,317)
Income before income taxes 13,505 1,059 28,218 16,487
Income tax expense 2,596 2,945 5,724 7,576
Net Income (Loss) 10,909 (1,886) 22,494 8,911
Net Income (Loss) attributable to non-controlling interests, net (5,026) (1,200) (9,751) (5,877)
Net Income (Loss) attributable to ATN International, Inc. stockholders $5,883 $(3,086) $12,743 $3,034
Basic net income per weighted average share attributable to ATN International, Inc. stockholders:
Net Income (Loss) $0.36 $(0.19) $0.79 $0.19
Diluted net income per weighted average share attributable to ATN International, Inc. stockholders:
Net Income (Loss) $0.36 $(0.19) $0.78 $0.19
Weighted average common shares outstanding:
Basic 16,195 16,145 16,176 16,118
Diluted 16,274 16,145 16,263 16,221

Table 3
ATN International, Inc.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)
Six Months Ended June 30,
2017 2016
Net income$22,494 $8,911
Depreciation and amortization 44,747 31,047
Stock-based compensation 3,786 3,633
Loss (Gain) on disposition of long-lived assets 1,111 (29)
Loss on deconsolidation of subsidiary 529 -
Equity in earnings 2,033 -
Bargain purchase gain - (7,304)
Impairment of long-lived assets - 11,076
Deferred income taxes - (8,775)
Change in prepaid and accrued income taxes (4,502) 15,294
Change in other operating assets and liabilities (6,370) (3,469)
Other non-cash activity 1,639 336
Net cash provided by operating activities 65,467 50,720
Capital expenditures (78,549) (42,727)
Acquisition of businesses, net of acquired cash of $0 and $8.3 million (1,178) (29,719)
Sale of business, net of transferred cash of $2.1 million 22,597 -
Purchases of spectrum licenses and other intangible assets, including deposits (36,832) (10,860)
Purchase of securities - (2,000)
Acquisition of non-controlling interest in subsidiary - (7,045)
Proceeds from sale of investments 2,761 -
Change in restricted cash 1,756 1,134
Net cash used in investing activities (89,445) (91,217)
Dividends paid on common stock (10,992) (10,311)
Distributions to non-controlling interests (3,373) (4,302)
Principal repayments of term loan (5,447) (4,759)
Proceeds from new borrowings 8,571 -
Purchases of common stock (2,186) (1,986)
Investments made by minority shareholders in consolidated affiliates 122 21,904
Other (1,005) 164
Net cash provided by (used in) financing activities (14,310) 710
Effect of foreign currency exchange rates on cash and cash equivalents 207 -
Net change in cash and cash equivalents (38,081) (39,787)
Cash and cash equivalents, beginning of period 269,721 392,045
Cash and cash equivalents, end of period$231,640 $352,258

Table 4
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended June 30, 2017 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Corporate and Other *Total
Statement of Operations Data:
Revenue
Wireless$34,505 $19,955 $- $- $54,460
Wireline 2,057 59,402 - - 61,459
Renewable Energy - - 4,891 - 4,891
Equipment and Other 416 2,013 6 - 2,435
Total Revenue$36,978 $81,370 $4,897 $- $123,245
Operating Income (Loss)$13,147 $10,805 $846 $(8,955)$15,843
Non-controlling interest ( net income or (loss) )$(1,756)$(3,024)$(246)$- $(5,026)
Non GAAP measure:
Adjusted EBITDA$19,393 $23,939 $2,676 $(7,763)$38,245
Balance Sheet Data (at June 30, 2017):
Cash, cash equivalents and investments$14,353 $98,684 $18,679 $107,679 $239,395
Total current assets 43,730 152,351 27,209 121,045 344,335
Fixed assets, net 102,532 374,748 156,503 15,951 649,734
Total assets 205,968 602,990 201,785 190,733 1,201,476
Total current liabilities 44,733 76,896 15,134 15,128 151,891
Total debt - 95,446 64,236 - 159,682
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the three months ended June 30, 2016 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Corporate and Other *Total
Statement of Operations Data:
Revenue
Wireless$37,655 $19,433 $- $- $57,088
Wireline 5,811 28,165 - - 33,976
Renewable Energy - - 5,562 - 5,562
Equipment and Other 480 2,765 120 - 3,365
Total Revenue$43,946 $50,363 $5,682 $- $99,991
Operating Income (Loss)$4,797 $9,259 $(3,618)$(8,526)$1,912
Non-controlling interest ( net income or (loss) )$(1,266)$478 $(412)$- $(1,200)
Non GAAP measure:
Adjusted EBITDA$21,482 $15,420 $3,809 $(6,368)$34,343
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the six months ended June 30, 2017 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Corporate and Other *Total
Statement of Operations Data:
Revenue
Wireless$71,668 $39,022 $- $- $110,690
Wireline 8,108 117,151 - - 125,259
Renewable Energy - - 9,791 - 9,791
Equipment and Other 995 4,487 138 - 5,620
Total Revenue$80,771 $160,660 $9,929 $- $251,360
Operating Income (Loss)$28,533 $20,771 $2,287 $(17,955)$33,636
Non-controlling interest ( net income or (loss) )$(4,153)$(5,033)$(565)$- $(9,751)
Non GAAP measure:
Adjusted EBITDA$42,561 $46,901 $5,571 $(14,713)$80,320
Statement of Cash Flow Data:
Capital expenditures$12,602 $37,119 $25,535 $3,293 $78,549
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
For the six months ended June 30, 2016 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Corporate and Other *Total
Statement of Operations Data:
Revenue
Wireless$77,119 $38,846 $- $- $115,965
Wireline 11,857 44,564 - - 56,421
Renewable Energy - - 11,151 - 11,151
Equipment and Other 1,169 4,850 120 - 6,139
Total Revenue$90,145 $88,260 $11,271 $- $189,676
Operating Income (Loss)$21,579 $16,959 $(3,555)$(17,179)$17,804
Non-controlling interest ( net income or (loss) )$(2,853)$(1,875)$(1,149)$- $(5,877)
Non GAAP measure:
Adjusted EBITDA$43,884 $29,497 $8,051 $(12,988)$68,444
Statement of Cash Flow Data:
Capital expenditures$16,447 $22,283 $242 $3,755 $42,727
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
ATN International, Inc.
Selected Segment Financial Information
(In Thousands)
At December 31, 2016 is as follows:
U.S.
Telecom
International
Telecom
Renewable
Energy
Corporate and Other *Total
Balance Sheet Data:
Cash, cash equivalents and investments$22,235 $97,681 $27,378 $131,664 $278,958
Total current assets 50,983 143,201 37,440 135,745 367,369
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 95,502 12,603 18,838 150,105
Total debt - 91,316 65,507 - 156,823
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
ATN International, Inc.
Selected Segment Operational Data
Quarter ended
December 31,March 31,June 30,
2016 * 2017 2017
U.S. Telecom Operational Data:
Wireless - Total Domestic Base Stations 1,006 1,019 1,041
International Telecom Operational Data:
Wireline - Voice / Access lines 179,700 176,900 174,600
Wireline - Data Subscribers 97,400 99,900 101,700
Wireline - Video Subscribers 54,600 53,800 52,900
Wireless - Subscribers 304,700 302,900 302,900
* Adjusted subscriber counts for the sale of St Maarten and transfer of ownership of Aruba business

Table 5
ATN International, Inc.
Reconciliation of Non-GAAP Measures
(In Thousands)
Reconciliation of Net Income to Adjusted EBITDA for the Three Months Ended June 30, 2017 and 2016
Three Months Ended June 30, 2017
U.S. Telecom Renewable EnergyCorporate
and Other *
Total
International Telecom
Net Income attributable to ATN International, Inc. stockholders $5,883
Net Income (Loss) attributable to non-controlling interests, net of tax 5,026
Income tax expense 2,596
Other expense, net 532
Interest expense, net 1,806
Operating income$13,147$10,805 $846 $(8,955)$15,843
Depreciation and amortization 6,246 13,134 1,830 1,044 22,254
Transaction-related charges - - - 148 148
Adjusted EBITDA$19,393$23,939 $2,676 $(7,763)$38,245
Three Months Ended June 30, 2016
U.S. Telecom Renewable EnergyCorporate
and Other *
Total
International Telecom
Net Income (Loss) attributable to ATN International, Inc. stockholders $(3,086)
Net Income (Loss) attributable to non-controlling interests, net of tax 1,200
Income tax expense 2,945
Other expense, net 137
Interest expense, net 716
Operating income$4,797$9,259 $(3,618)$(8,526)$1,912
Depreciation and amortization 5,609 8,209 1,207 1,468 16,493
Impairment of long-lived asset 11,076 - - - 11,076
Bargain purchase gain - (7,304) - - (7,304)
Gain on disposition of long-lived assets - (29) - - (29)
Restructuring charges - 1,785 - - 1,785
Transaction-related charges - 3,500 6,220 690 10,410
Adjusted EBITDA$21,482$15,420 $3,809 $(6,368)$34,343
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments
Reconciliation of Net Income to Adjusted EBITDA for the Six Months Ended June 30, 2017 and 2016
Six Months Ended June 30, 2017
U.S. Telecom Renewable EnergyCorporate
and Other *
Total
International Telecom
Net Income attributable to ATN International, Inc. stockholders $12,743
Net Income (Loss) attributable to non-controlling interests, net of tax 9,751
Income tax expense 5,724
Loss on deconsolidation of subsidiary 529
Other expense, net 1,053
Interest expense, net 3,836
Operating income$28,533$20,771 $2,287 $(17,955)$33,636
Depreciation and amortization 12,797 26,250 3,284 2,416 44,747
(Gain) loss on disposition of long-lived asset 1,231 (120) - - 1,111
Transaction-related charges - - - 826 826
Adjusted EBITDA$42,561$46,901 $5,571 $(14,713)$80,320
Six Months Ended June 30, 2016
U.S.
Telecom
Renewable
Energy
Corporate
and Other *
Total
International
Telecom
Net Income (Loss) attributable to ATN International, Inc. stockholders $3,034
Net Income (Loss) attributable to non-controlling interests, net of tax 5,877
Income tax expense 7,576
Other income, net 123
Interest expense, net 1,194
Operating income$21,579$16,959 $(3,555)$(17,179)$17,804
Depreciation and amortization 11,229 14,586 2,415 2,817 31,047
Impairment of long-lived asset 11,076 - - - 11,076
Bargain purchase gain - (7,304) - - (7,304)
Gain on disposition of long-lived assets - (29) - - (29)
Restructuring charges - 1,785 - - 1,785
Transaction-related charges - 3,500 9,191 1,374 14,065
Adjusted EBITDA$43,884$29,497 $8,051 $(12,988)$68,444
* Corporate and Other refer to corporate overhead expenses and consolidating adjustments


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

Source:ATN International, Inc.