ATN Reports First Quarter 2022 Results and
Reiterates Financial Outlook

First Quarter 2022 Results

·Revenues increased to $172.0 million from $124.5 million a year ago, primarily due to the successful acquisition of Alaska Communications.
·Net loss was $0.9 million versus net income of $2.7 million a year ago.
·EBITDA1 increased to $36.7 million from $23.9 million a year ago.
·Adjusted EBITDA2 increased to $40.6 million from $24.7 million a year ago.
·Capital expenditures were $34.5 million.
·Total cash, cash equivalents and restricted cash was $76.8 million as of March 31, 2022.

Beverly, MA (April 27, 2022) -- ATN International, Inc. (“ATN” or the “Company”) (Nasdaq: ATNI), a leading provider of digital infrastructure and communications services, today reported results for the first quarter ended March 31, 2022.

“We started off 2022 on the right foot, expanding our subscriber counts and reach in multiple markets,” commented Michael Prior, Chief Executive Officer of ATN. “With a persistent focus on being first to fiber, we are rapidly deploying fiber optic facilities and other high-speed solutions in the communities we serve. More communities, homes, businesses, schools, and even other carriers now have access to world-class connectivity as a result. Customers up and down the value chain are very appreciative of these in-roads, and we continue to build relationships for the long term.

 

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

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

1

“Staying true to our roots, we brought digital connectivity to more remote areas in the quarter. This included connecting ten Navajo Nation Consortium schools and bringing fiber to five new communities in Guyana, greatly improving broadband capacity for residents, businesses and schools in these coastal and inland mining towns. We currently have more than half a million homes passed by our broadband networks, up 92% from a year ago, and we are now capable of delivering higher-speed data services to 38% of our residential subscribers. We expect to continue to increase the number of homes, schools and businesses passed by our high-speed services as well as the number of customers subscribed to those services throughout the year which should be reflected in our financial results through revenue growth and margin improvement.

“Looking ahead, as we advance our network builds, strategic initiatives and augmented sales and marketing capabilities, we remain confident in our 2022 and three-year forecasts. We continue to see attractive investment opportunities in many of our markets with good growth potential. We plan to further expand our offerings of higher-speed services via fiber and other high-speed data solutions to capture this sizable opportunity,” added Prior.

First Quarter 2022 Financial Results

First quarter 2022 consolidated revenues were $172.0 million, up 38% compared with $124.5 million in the same period a year ago. The Company reported operating income of $0.1 million and Adjusted EBITDA2 of $40.6 million compared with an operating income of $3.3 million and Adjusted EBITDA2 of $24.7 million in the same period a year ago. The increase in revenue and Adjusted EBITDA2 was mostly driven by the addition of Alaska Communications' results. The decrease in operating income for the quarter was mainly driven by $3.4 million of one-time losses on disposed assets in both the Company’s US and International Telecom businesses. Net loss attributable to ATN stockholders for the first quarter was $1.0 million, or $0.13 loss per share, compared with net income attributable to ATN stockholders of $2.7 million, or $0.17 income per diluted share, in the same period a year ago.

First Quarter 2022 Operating Segment Results

The Company recorded financial results during the first quarter of 2022 in three categories: (i) International Telecom; (ii) US Telecom; and (iii) All Other. For the purposes of the below presentation, the Company’s Renewable Energy segment has been combined with the Company’s Corporate segment and Other segment as “All Other.”

2

Operating Results (in Thousands)

   For Three Months Ended March 31, 2022 and 2021 
   2022   2021   2022   2021   2022   2021   2022   2021 
   International   International   US   US           Total   Total 
   Telecom   Telecom   Telecom   Telecom   All Other*   All Other*   ATN   ATN 
Revenue  $86,787   $83,820   $85,232   $40,272   $-   $418   $172,019   $124,510 
Operating Income (Loss)  $11,802   $13,116   $(4,635)  $(534)  $(7,059)  $(9,233)  $108   $3,349 
EBITDA1  $26,117   $26,942   $16,647   $4,659   $(6,106)  $(7,744)  $36,658   $23,857 
Adjusted EBITDA2  $27,148   $26,941   $19,578   $4,648   $(6,094)  $(6,885)  $40,632   $24,704 
Capital Expenditures**  $15,170   $10,506   $19,095   $14,939   $203   $235   $34,468   $25,680 

*For this table presentation, the Renewable Energy segment results and Corporate and Other segment results were combined. See table 4 for the separate presentation of the financial performance of these segments.

**Includes capital expenditures reimbursable from customers of $0.2 million and $6.2 million for the three months ended March 31, 2022, and the three months ended March 31, 2021, respectively.

International Telecom

International Telecom revenues3 were $86.8 million for the quarter, up 4% year-over-year. This increase was mainly due to mobility subscriber growth as well as higher carrier services revenue, partially offset by a decline in federal high-cost support subsidies for the U.S. Virgin Islands. Increased travel and tourism in the U.S. Virgin Islands and Bermuda contributed to the increases in segment revenues. Operating expenses for the quarter increased incrementally year-over-year as the Company’s operations returned to pre-pandemic levels and the Company invested in brand positioning to expand its subscriber base in certain markets. The International Telecom segment reported operating income of $11.8 million and Adjusted EBITDA2 of $27.1 million in the quarter, compared with operating income of $13.1 million and Adjusted EBITDA2 of $26.9 million in the prior year period. The year-over-year changes were due to higher operating expenditures offsetting the increase in segment revenues, and the impact of a one-time loss on disposed assets in the quarter.

 

3 International Telecom revenues are generated by delivery of a broad range of communications and managed IT services, including data, voice and video services from the Company’s fixed and mobile network operations in Bermuda and the Caribbean, and include direct government payments as part of the FCC high-cost support program in the USVI.

3

US Telecom

US Telecom segment revenues4 were $85.2 million in the quarter, more than doubling from $40.3 million in the prior year period. Business and carrier services revenues accounted for approximately 75% of the segment’s services revenues in the first quarter of 2022. Operating loss was $4.6 million compared with $0.5 million in the same period a year ago. This increase in operating loss was mainly due to lower profitability in the Company’s legacy US Telecom business and one-time losses on disposed assets. Adjusted EBITDA2 was $19.6 million in the quarter compared with $4.6 million in the same period a year ago. The increase in segment revenue and Adjusted EBITDA2 was mainly due to the consolidation of Alaska Communications, partially offset by the reduction in legacy wholesale wireless revenues. The increase in Adjusted EBITDA2 was also driven by the consolidation of Alaska Communications and expense reductions associated with the Company’s private networks business, partially offset by the year-over-year increases in network costs due to the completion of additional FirstNet sites.

By the end of the first quarter of 2022, the Company had completed and activated just over 60% of the total sites related to the network build portion of its long-term FirstNet Agreement. The Company expects to complete an additional 30% of the total build by the end of 2022 and that revenues from the build will be largely offset by construction costs incurred in the same period.

Balance Sheet and Cash Flow Highlights

As of March 31, 2022, the Company had total cash, cash equivalents and restricted cash of $76.8 million, compared with $80.7 million as of December 31, 2021.

Net cash provided by operating activities was $11.4 million for the three months ended March 31, 2022, compared with $5.3 million for the three months ended March 31, 2021. The year-over-year increase in operating cash flow was due to the increase in EBITDA in the first quarter of 2022, which offset net reductions in working capital. For the three months ended March 31, 2022, the Company used net cash of $15.2 million for investing and financing activities, compared to $18.0 million for the three months ended March 31, 2021. The net use of cash was primarily attributable to $34.5 million in capital expenditures, $2.5 million of purchases of minority equity interests in the Company’s subsidiaries and $3.6 million in dividends to Company stockholders and repurchases of Company common stock. These uses of cash were partially offset by net borrowings of $21.0 million under revolving credit agreements.

 

4 US Telecom revenues consist of broadband, carrier services, managed IT services, fixed enterprise, and mobile retail revenues from the Company’s networks and operations in Alaska and in the western United States, including various government programs such as CAF II, E-Rate, Lifeline and rural healthcare support programs.

4

Quarterly Dividends and Stock Buybacks

On March 28, 2022, ATN announced that its Board of Directors had declared a quarterly dividend of $0.17 per share, payable on April 15, 2022, on all common shares outstanding to stockholders of record as of April 8, 2022. In the first quarter of 2022, the Company utilized cash on hand to repurchase $0.9 million in common stock.

2022 Guidance

The Company is reiterating its outlook for 2022 financial performance, originally provided on February 23, 2022, within its fourth quarter and full year 2021 earnings release. The foundation of the Company’s full year 2022 financial targets is based on continued capital investments in the range of $150 to $160 million (net of reimbursed amounts), primarily in network expansion and upgrades, which are expected to drive subscriber and revenue growth. The Company expects its Adjusted EBITDA levels to increase in the latter part of the year and to be in the range of $165 to $170 million for the full year5. The Company expects its revenue and Adjusted EBITDA growth to be supported by the contribution of a full year of business results from Alaska Communications.

Three Year Outlook

The Company is reiterating its targets to be achieved in the three-year period ending in 2024, originally provided on February 23, 2022 within its fourth quarter and full year 2021 earnings release. These goals are largely based on, and in line with, the Company’s continuing investments in its Glass and Steel™ and “fiber-first” platform strategies, which the Company anticipates will drive compound annual revenue growth (excluding construction revenues) of 4-6%, leading to 2024 revenue in the range of $770 to $810 million. The Company also expects compound annual Adjusted EBITDA growth of 8-10% for the three-year period ending in 20245, outpacing its expected compound annual revenue growth rate over the same period. Capital expenditures are expected to return to more normalized levels of 10-15% of revenues after the three-year investment period ending in 2024. The Company’s Net Debt Ratio6 is expected to be less than 1.5x at the end of the three-year period ending in 20245.

 

5 For the Company’s 2022 Guidance Adjusted EBITDA and Three Year Outlook Adjusted EBITDA and Net Debt Ratio, 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 and Net Debt Ratio.

6 Net Debt Ratio, a non-GAAP measure, is defined as total Debt less Cash and Cash Equivalents divided by Adjusted EBITDA – see Table 6.

5

The Company will provide updates to the market on this strategy and outlook from time to time as it progresses going forward.

Strategic Progress Highlights

The Company believes that its Glass and Steel™ and “first-to-fiber” market strategies are important for its long-term success and sees a rapidly growing need for more bandwidth and reliable connectivity. Deploying capital for growth in fiber and fiber-fed high-speed data solutions to more homes, businesses, schools, cell sites, and communities has led to increases in the Company’s fiber footprint and broadband subscriber levels. Domestically, the addition of Alaska Communications has further accelerated the Company’s reach.

From January 1, 2020 to the present, the Company has:

·Added 242,000 premises passed by broadband and 30,000 premises passed by higher-speed solutions7 .
·Added approximately 64,700 broadband subscribers, an increase of 47%.
·More than doubled terrestrial fiber facilities, adding over 6,000 route miles.
·Expanded mobile data capacity in all markets and added over 56,000 mobile subscribers, an increase of 18%.

Conference Call Information

ATN will host a conference call on Thursday, April 28, 2022, at 10:30 a.m. Eastern Time (ET) to discuss its first quarter results and business outlook. The call will be hosted by Michael Prior, Chairman 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. The Conference ID is 7884416. A replay of the call will be available at ir.atni.com beginning at approximately 1:00 p.m. (ET) on Thursday, April 28, 2022.

About ATN

ATN International, Inc. (Nasdaq: ATNI), headquartered in Beverly, Massachusetts, is a provider of digital infrastructure and communications services 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 wireless and wireline 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.

 

7 Defined as download speeds of greater than 100 MBPS.

6

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, EBITDA, Adjusted EBITDA, and capital expenditures; the competitive environment in the Company’s key markets, demand for the Company’s services and industry trends; the Company’s expectations regarding consumer and enterprise demand for its US Telecom services, expectations regarding the benefits of the Company’s acquisition of Alaska Communications; the impact of federal support program and government subsidy revenues; the Company’s liquidity; the organization of the Company’s business; 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 Company’s ability to successfully transition its US Telecom business away from wholesale wireless to other carrier and consumer-based services; (2) 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; (3) the Company’s ability to realize cost synergies and expansion plans for its Alaska Communications business; (4) the Company’s ability to satisfy the needs and demands of the Company’s major carrier customers; (5) 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; (6) 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; (7) 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; (8) economic, political and other risks and opportunities facing the Company’s operations, including those resulting from the pandemic; (9) the loss of, or an inability to recruit skilled personnel in the Company’s various jurisdictions, including key members of management; (10) the Company’s ability to find investment or acquisition or disposition opportunities that fit the strategic goals of the Company; (11) the occurrence of weather events and natural catastrophes and the Company’s ability to secure the appropriate level of insurance coverage for these assets; (12) increased competition; (13) the adequacy and expansion capabilities of the Company’s network capacity and customer service system to support the Company’s customer growth; and (14) the Company’s continued access to capital and credit markets. 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, 2021, filed with the SEC on March 16, 2022 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.

7

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, the Company has included EBITDA, Adjusted EBITDA and Net Debt Ratio in this release and in the tables included herein.

EBITDA is defined as operating income (loss) before depreciation and amortization expense. The Company has defined Adjusted EBITDA as operating income (loss) before depreciation and amortization expense, transaction-related charges, one-time impairment or special charges and the gain (loss) on disposition of assets. Net Debt Ratio is defined as total debt less cash and cash equivalents divided by the 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.

8

Contact:

Justin D. Benincasa

Chief Financial Officer

ATN International, Inc.

978-619-1300

Polly Pearson

Investor Relations [email protected]

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Table 1

ATN International, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in Thousands)

   March 31,   December 31, 
   2022   2021 
Assets:          
   Cash and cash equivalents  $75,748   $79,601 
   Restricted cash   1,097    1,096 
   Customer receivable   4,336    4,145 
   Other current assets   139,660    147,775 
           
   Total current assets   220,841    232,617 
           
   Property, plant and equipment, net   933,875    943,209 
   Operating lease right-of-use assets   118,091    118,843 
   Customer receivable - long term   40,206    39,652 
   Goodwill and other intangible assets, net   194,937    198,164 
   Other assets   82,757    76,119 
           
Total assets  $1,590,707   $1,608,604 
           
Liabilities, Redeemable Non-controlling interests and Stockholders’ Equity:          
   Current portion of long-term debt  $3,743   $4,665 
   Current portion of customer receivable credit facility   5,280    4,620 
   Taxes payable   6,680    5,681 
   Current portion of lease liabilities   16,953    16,201 
   Other current liabilities   152,070    189,777 
           
   Total current liabilities   184,726    220,944 
           
   Long-term debt, net of current portion  $348,463   $327,111 
   Customer receivable credit facility, net of current portion   36,515    30,148 
   Deferred income taxes   21,651    21,460 
   Lease liabilities   91,494    91,719 
   Other long-term liabilities   140,246    142,033 
           
Total liabilities   823,095    833,415 
           
Redeemable Non-controlling interests   74,052    72,936 
           
Stockholders' Equity          
   Total ATN International, Inc.’s stockholders’ equity   594,792    601,250 
   Non-controlling interests   98,768    101,003 
           
Total stockholders' equity   693,560    702,253 
           
Total liabilities, Redeemable Non-controlling interests and stockholders’ equity  $1,590,707   $1,608,604 

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Table 2

ATN International, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, Except per Share Data)

   Three Months Ended 
   2022   2021 
Revenues:          
   Communications services  $166,543   $110,636 
   Construction   1,987    12,306 
   Other   3,489    1,568 
   Total revenue   172,019    124,510 
           
Operating expenses (excluding depreciation and amortization unless otherwise indicated):          
   Cost of services and other   73,011    49,507 
   Cost of construction revenue   2,033    12,606 
   Selling, general and administrative   56,343    37,693 
   Transaction-related charges   554    730 
   Depreciation   33,292    20,111 
   Amortization of intangibles from acquisitions   3,258    397 
   Loss on disposition of assets   3,420    117 
Total operating expenses   171,911    121,161 
           
Operating income   108    3,349 
           
Other income (expense):          
   Interest expense, net   (3,312)   (1,153)
   Other income (expense)   4,199    2,375 
   Other income, net   887    1,222 
           
Income before income taxes   995    4,571 
   Income tax expense   2,952    295 
           
Net income (loss)   (1,957)   4,276 
           
Net income (loss) attributable to non-controlling interests, net   1,009    (1,570)
           
Net income (loss) attributable to ATN International, Inc. stockholders  $(948)  $2,706 
           
Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders:          
           
  Basic Net Income (loss)  $(0.13)  $0.17 
           
           
  Diluted Net Income (loss)  $(0.13)  $0.17 
           
Weighted average common shares outstanding:          
   Basic   15,708    15,902 
   Diluted   15,708    15,952 

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Table 3

ATN International, Inc.

Unaudited Condensed Consolidated Cash Flow Statement

(in Thousands)

   Three Months Ended March 31, 
   2022   2021 
           
   Net income (loss)  $(1,957)  $4,276 
   Depreciation   33,292    20,111 
   Amortization of intangibles from acquisitions   3,258    397 
   Provision for doubtful accounts   1,913    1,122 
   Amortization of debt discount and debt issuance costs   501    168 
   Loss on disposition of long-lived assets   3,420    117 
   Stock-based compensation   1,461    1,336 
   Deferred income taxes   191    (2,504)
   Gain on equity investments   (4,222)   (2,188)
   Unrealized (gain) loss on foreign currency   -    (81)
   Increase in customer receivable   (746)   (12,579)
   Change in prepaid and accrued income taxes   8,969    1,810 
   Change in other operating assets and liabilities   (34,692)   (6,662)
           
       Net cash provided by operating activities   11,388    5,323 
           
   Capital expenditures   (34,220)   (19,495)
   Reimbursable capital expenditures   (248)   (6,185)
   Purchases of strategic investments   -    (4,155)
   Receipt of government grants   -    3,292 
   Sale of business, net of transferred cash of $0 and $0.9 million, respectively   -    18,597 
           
       Net cash used in investing activities   (34,468)   (7,946)
           
   Dividends paid on common stock   (2,672)   (2,703)
   Distributions to non-controlling interests   (263)   (3,530)
   Finance leases   (338)   - 
   Term loan - repayments   (938)   (938)
   Revolving credit facility – borrowings   36,500    - 
   Revolving credit facility – repayments   (15,500)   - 
   Payment of debt issuance costs   -    53 
   Proceeds from customer receivable credit facility   8,000    10,814 
   Repayment of customer receivable credit facility   (1,003)   - 
   Purchases of common stock - stock-based compensation   (1,136)   (1,677)
   Purchases of common stock - share repurchase plan   (941)   (540)
   Repurchases of non-controlling interests   (2,481)   (11,522)
           
       Net cash provided by (used in) financing activities   19,228    (10,043)
           
Net change in total cash, cash equivalents and restricted cash   (3,852)   (12,666)
           
Total cash, cash equivalents and restricted cash, beginning of period   80,697    104,997 
           
Total cash, cash equivalents and restricted cash, end of period  $76,845   $92,331 

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Table 4

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

For the three months ended March 31, 2022 is as follows:

   International Telecom   US Telecom   Renewable Energy   Corporate and Other  *   Total 
Statement of Operations Data:                         
Revenue                         
   Mobility                         
        Business  $3,616   $374   $-   $-   $3,990 
        Consumer   19,970    1,456    -    -    21,426 
        Total  $23,586   $1,830   $-   $-   $25,416 
                          
   Fixed                         
        Business  $17,254   $27,145   $-   $-   $44,399 
        Consumer   41,093    18,968    -    -    60,061 
        Total  $58,347   $46,113   $-   $-   $104,460 
                          
  Carrier Services  $3,402   $32,989   $-   $-   $36,391 
  Other   276    -    -    -    276 
                          
Total Communications Services  $85,611   $80,932   $-   $-   $166,543 
                          
Construction  $-   $1,987   $-   $-   $1,987 
                          
  Managed services  $1,176   $2,313   $-   $-   $3,489 
Total Other  $1,176   $2,313   $-   $-   $3,489 
                          
Total Revenue  $86,787   $85,232   $-   $-   $172,019 
                          
Depreciation  $13,897   $18,442   $-   $953   $33,292 
Amortization of intangibles from acquisitions  $418   $2,840   $-   $-   $3,258 
Total operating expenses  $74,984   $89,868   $23   $7,036   $171,911 
Operating income (loss)  $11,802   $(4,635)  $(23)  $(7,036)  $108 
Stock-based compensation  $60   $90   $-   $1,310   $1,460 
Non-controlling interest ( net income or (loss) )  $(1,519)  $2,528   $-   $-   $1,009 
                          
Non GAAP measures:                         
EBITDA (1)  $26,117   $16,647   $(23)  $(6,083)  $36,658 
Adjusted EBITDA (2)  $27,148   $19,578   $(23)  $(6,071)  $40,632 
                          
Balance Sheet Data (at March 31, 2022):                         
Cash, cash equivalents and investments  $40,101   $29,285   $705   $5,957   $76,048 
Total current assets   105,551    108,779    3,653    2,858    220,841 
Fixed assets, net   448,064    476,491    -    9,320    933,875 
Total assets   623,497    868,338    17,053    81,818    1,590,706 
Total current liabilities   80,857    87,434    356    16,079    184,726 
Total debt   63,342    259,159    -    71,500    394,001 

*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments

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ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

For the three months ended March 31, 2021 is as follows:

   International Telecom   US Telecom   Renewable Energy   Corporate and Other  *   Total 
Statement of Operations Data:                         
Revenue                         
   Mobility                         
        Business  $1,197   $576   $-   $-   $1,773 
        Consumer   20,624    2,284    -    -    22,908 
        Total  $21,821   $2,860   $-   $-   $24,681 
                          
   Fixed                         
        Business  $16,634   $2,696   $-   $-   $19,330 
        Consumer   42,114    3,674    -    -    45,788 
        Total  $58,748   $6,370   $-   $-   $65,118 
                          
  Carrier Services  $1,883   $18,736   $-   $-   $20,619 
  Other   218    -    -    -    218 
                          
Total Communications Services  $82,670   $27,966   $-   $-   $110,636 
                          
Construction  $-   $12,306   $-   $-   $12,306 
                          
  Renewable Energy  $-   $-   $418   $-   $418 
  Managed services   1,150    -    -    -    1,150 
                          
Total Other  $1,150   $-   $418   $-   $1,568 
                          
Total Revenue  $83,820   $40,272   $418   $-   $124,510 
                          
Depreciation  $13,429   $5,193   $188   $1,301   $20,111 
Amortization of intangibles from acquisitions  $397   $-   $-   $-   $397 
Total operating expenses  $70,704   $40,806   $1,080   $8,571   $121,161 
Operating income (loss)  $13,116   $(534)  $(662)  $(8,571)  $3,349 
Stock-based compensation  $37   $15   $22   $1,262   $1,336 
Non-controlling interest ( net income or (loss) )  $(1,690)  $(676)  $796   $-   $(1,570)
                          
Non GAAP measures:                         
EBITDA (1)  $26,942   $4,659   $(474)  $(7,270)  $23,857 
Adjusted EBITDA (2)  $26,941   $4,648   $(1)  $(6,884)  $24,704 

*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments      

ATN International, Inc.

Selected Segment Financial Information

(In Thousands)

at December 31, 2021

   International Telecom   US Telecom   Renewable Energy   Corporate and Other  *   Total 
Balance Sheet Data (at December 31, 2021):                         
Cash, cash equivalents and investments  $43,128   $28,486   $659   $7,628   $79,901 
Total current assets   108,677    111,741    3,585    8,614    232,617 
Fixed assets, net   452,856    480,250    -    10,103    943,209 
Total assets   630,515    877,041    17,481    83,567    1,608,604 
Total current liabilities   91,090    108,950    356    20,548    220,944 
Total debt   64,243    240,802    -    61,499    366,544 

(1) See Table 5 for reconciliation of Operating Income to EBITDA        

(2) See Table 5 for reconciliation of Operating Income to Adjusted EBITDA        

*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments      

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ATN International, Inc.

Selected Segment Operational Information

   As of   As of 
   December 31,   March 31, 
   2021   2022 
Consolidated Operational Data #:          
           
Fiber Route Miles   9,058    9,127 
Fiber Connected Towers *   394    394 
Owned Towers **   398    398 
           
Broadband Homes Passed - total   502,400    502,400 
Broadband Homes Passed - by HSD ***   187,300    190,200 
% Broadband Homes Passed by HSD ***   37%   38%
           
Broadband Customers   203,700    204,000 
HSD *** Capable Customers   98,100    101,800 
% HSD*** Capable Customers   48%   50%
   Quarter ended 
   March 31,   June 30,   September 30,   December 31,   March 31, 
   2021   2021   2021   2021   2022 
International Telecom Operational Data:                         
                          
Mobile - Subscribers #                         
   Pre-Paid   261,900    273,400    276,400    285,800    291,900 
   Post-Paid   45,700    46,600    49,200    49,800    50,200 
   Total   307,600    320,000    325,600    335,600    342,100 
                          
Mobile - Blended Churn   2.26%   2.19%   2.68%   2.73%   2.86%

#  Data presented may differ from prior reported quarter to reflect more accurate data and/or changes in calculation methodology and process.

* All cell sites, including rooftops, that the company serves with its own fiber      

** All geographically distinct cell sites, including towers and other structures      

*** HSD is defined as download speeds > 100 Mbs          

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          Table 5

ATN International, Inc.

Reconciliation of Non-GAAP Measures

(In Thousands)

For the three months ended March 31, 2022 is as follows:

   International
Telecom
   US Telecom   Renewable
Energy
   Corporate and
Other  *
   Total 
Operating income (loss)  $11,802   $(4,635)  $(23)  $(7,036)  $108 
Depreciation expense   13,897    18,442    -    953    33,292 
Amortization of intangibles from acquisitions   418    2,840    -    -    3,258 
EBITDA  $26,117   $16,647   $(23)  $(6,083)  $36,658 
                          
Transaction-related charges   -    542    -    12    554 
Loss on disposition of assets   1,031    2,389    -    -    3,420 
ADJUSTED EBITDA  $27,148   $19,578   $(23)  $(6,071)  $40,632 
                          
Revenue   86,787    85,232    -    -    172,019 
ADJUSTED EBITDA MARGIN   31.3%   23.0%   NA    NA    23.6%

For the three months ended March 31, 2021 is as follows:

   International Telecom   US Telecom   Renewable Energy   Corporate and Other  *   Total 
Operating income (loss)  $13,116   $(534)  $(662)  $(8,571)  $3,349 
Depreciation expense   13,429    5,193    188    1,301    20,111 
Amortization of intangibles from acquisitions   397    -    -    -    397 
EBITDA  $26,942   $4,659   $(474)  $(7,270)  $23,857 
                          
Transaction-related charges   -    -    566    164    730 
(Gain) Loss on disposition of assets   (1)   (11)   (93)   222    117 
ADJUSTED EBITDA  $26,941   $4,648   $(1)  $(6,884)  $24,704 
                          
Revenue   83,820    40,272    418    -    124,510 
ADJUSTED EBITDA MARGIN   32.1%   11.5%   -0.2%   NA    19.8%

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              Table 6

ATN International, Inc.

Non GAAP Measure - Net Debt Ratio

(in Thousands, Except per Share Data)

   March 31,   December 31, 
   2022   2021 
Current portion of long-term debt  $3,743   $4,665 
Long-term debt, net of current portion   348,463    327,111 
           
Total debt  $352,206   $331,776 
           
Less: Cash and cash equivalents   75,748    79,601 
           
Net Debt  $276,458   $252,175 
           
           
Adjusted EBITDA - for the four quarters ended  $144,977   $129,047 
           
           
Net Debt Ratio   1.91    1.95 

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