ATN International Inc (ATNI) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus News
3 min read

In This Article:

  • Total Revenue: $178.5 million, down 7% year-over-year.

  • Operating Loss: $38.4 million, includes a $35.3 million goodwill impairment charge.

  • Net Loss: $32.7 million or $2.26 per share.

  • Adjusted EBITDA: $45.7 million, down 5% year-over-year.

  • International Segment Revenue: $94.3 million, flat year-over-year.

  • International Segment Adjusted EBITDA: $32.2 million, up 17.3% year-over-year.

  • Domestic Segment Revenue: $84.2 million, down 13% year-over-year.

  • Domestic Segment Adjusted EBITDA: $17.7 million, down 34.1% year-over-year.

  • Net Cash Provided by Operating Activities: $97.4 million for the first nine months of 2024.

  • Capital Expenditures: $85.7 million net of $71.8 million reimbursable for the first nine months of 2024.

  • Full Year Revenue Guidance: Revised to $720 million to $730 million.

  • Full Year Adjusted EBITDA Guidance: Revised to $182 million to $188 million.

  • Net Debt Ratio: 2.39 times, with total debt of $561 million.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ATN International Inc (NASDAQ:ATNI) reported strong free cash flow from operations in Q3 2024.

  • The international segment achieved double-digit growth in adjusted EBITDA, driven by effective cost management.

  • ATN International Inc (NASDAQ:ATNI) launched 5G in two international markets, contributing to improved subscriber quality and revenue growth.

  • The company is leveraging government funding, such as the B program, to support capital investments and enhance infrastructure.

  • ATN International Inc (NASDAQ:ATNI) is focused on optimizing value through cost efficiency initiatives and strategic asset management.

Negative Points

  • The US operations underperformed, with lower levels of nonplanned prepaid consumer mobility sales and slower consumer sales execution.

  • ATN International Inc (NASDAQ:ATNI) reported a non-cash $35 million goodwill impairment charge due to market dynamics and compression in market multiples.

  • Revenue was down 7% year-over-year, primarily due to the conclusion of government programs and a reduction in construction revenues.

  • The company faced challenges in Alaska, with expected revenue pipelines not materializing as projected.

  • ATN International Inc (NASDAQ:ATNI) had to adjust its full-year financial outlook due to these challenges, reflecting lower revenue and adjusted EBITDA expectations.

Q & A Highlights

Q: Can you elaborate on the restructuring efforts in the US Telecom segment and the expected timeline for seeing benefits? A: Carlos Doglioli, CFO: Some restructuring efforts are already reflected in the numbers, with benefits expected to be more visible in 2025 and beyond. These efforts include cost management and organizational changes aimed at improving margins and cash flow.

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