ATN International Inc
For the period ended Jun 30, 2024. Filed Aug 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 9, 2024
ATNI$28.02+5.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-10.
0001558370-24-007776
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0001558370-24-011708
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 187 previous paragraphs and 224 current paragraphs.
100 unchanged; 70 reworded; 39 added; 13 removed; 4 previous and 15 current paragraphs rearranged.
Tables are not compared: 34 previous and 56 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (39)
Current report
Operating expenses within our International Telecom segment decreased by $14.4 million, or 18.6%, to $63.0 million from $77.4 million for the three months ended June 30, 2024 and 2023, respectively. The net decrease was the result of a $15.8 million gain on the disposition of long-lived assets, primarily real estate, and certain cost savings initiatives that commenced in previous periods partially offset by an increase in other operating expenses to support this segment’s revenue growth.
Current report
US Telecom. Revenue within our US Telecom segment decreased by $6.6 million, or 7.0%, to $87.9 million from $94.5 million for the three months ended June 30, 2024 and 2023, respectively, primarily as a result of the conclusion of the Emergency Connectivity Fund during the second quarter of 2024.
Current report
Within our International Telecom segment, Managed Services revenue increased $0.5 million, or 41.7%, to $1.7 million from $1.2 million for the three months ended June 30, 2024 and 2023, respectively, as a result of our continued efforts to sell Managed Services solutions across all of our international markets.
Current report
Within our US Telecom segment, Managed Services revenue increased $0.7 million, or 25.9%, to $3.4 million from $2.7 million for the three months ended June 30, 2024 and 2023, respectively, as a result of our continued efforts to sell Managed Services solutions to all of our US markets.
Current report
Cost of communication services in both our International and US Telecom segments may continue to decrease as a result of the ongoing cost reduction initiatives that commenced in previous periods but may be partially offset by future inflationary pressure.
Current report
Selling, general and administrative expenses in both our International and US Telecom segments, as well as our Corporate Overhead, may decrease as a result of the ongoing cost reduction initiatives that commenced in previous periods but may be partially offset by future inflationary pressure.
Current report
**Restructuring expenses.**We did not record any restructuring expenses during the three months ended June 30, 2024. In connection with our repositioning of our legacy wholesale roaming operations in our US Telecom segment, we recorded a $0.4 million restructuring charge during the three months ended June 30, 2023 primarily related to the decommissioning of certain cell sites.
Current report
During the three months ended June 30, 2023, we recorded a loss on the disposition of long-lived assets of $0.4 million within our US Telecom segment.
Current report
Other income (expense). For the three months ended June 30, 2024, other income (expense) was $0.6 million of expense primarily related to expenses for certain employee benefit plans and losses on foreign currency transactions.
Current report
**Income taxes.**Our effective tax rate for the three months ended June 30, 2024 and 2023 was 1.8% and 88.5% respectively.
Current report
We recorded an income tax expense of $0.2 million in relation to a pretax income of $11.5 million for the three months ended June 30, 2024. The effective tax rate for the three months ended June 30, 2024 was primarily impacted by the following items (i) the mix of income generated among the jurisdictions in which we operate, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence and (iii) discrete items including a $2.4 million expense associated with the gain on sale of land in a foreign jurisdiction, a $3.7 million benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration and a $0.8 million expense for interest on unrecognized tax positions.
Current report
Selected Segment Financial Information
Current report
As a result, our International Telecom segment’s operating income increased $15.7 million, or 55.3%, to $44.1 million from $28.4 million for the six months ended June 30, 2024 and 2023, respectively.
Current report
US Telecom. Revenue within our US Telecom segment decreased by $8.1 million, or 4.3%, to $181.7 million from $189.8 million for the six months ended June 30, 2024 and 2023, respectively, primarily as a result of the conclusion of the Emergency Connectivity Fund during the second quarter of 2024.
Current report
Operating expenses within our US Telecom segment decreased $16.3 million, or 8.3%, to $180.2 million from $196.5 million for the six months ended June 30, 2024 and 2023, respectively, as a result of certain cost savings initiatives that commenced in previous periods.
Current report
Communications Services Revenue
Current report
**Mobility Revenue.**Mobility revenue decreased by $0.6 million, or 1.1%, to $54.5 million for the six months ended June 30, 2024 from $55.1 million for the six months ended June 30, 2023. Mobility revenue from consumer customers decreased by $3.1 million partially offset by an increase in Mobility revenue from business customers of $2.5 million.
Current report
**Fixed Revenue.**Fixed revenue decreased by $1.7 million, or 0.7%, to $233.9 million from $235.6 million for the six months ended June 30, 2024 and 2023, respectively. Revenue from business customers decreased by $3.1 million, partially offset by an increase in revenue from consumer customers of $1.5 million. The increase in Fixed revenue, within our segments, consisted of the following:
Current report
**Carrier Services Revenue.**Carrier Services revenue decreased by $3.9 million, or 5.5%, to $67.3 million from $71.2 million for the six months ended June 30, 2024 and 2023, respectively. The decrease, within our segments, consisted of the following:
Current report
Construction Revenue
Current report
During the six months ended June 30, 2024 and 2023, Construction revenue increased to $2.4 million from $1.6 million, respectively, as a result of an increase in the number of sites completed during 2024 as compared to 2023.
Current report
Other Revenue
Current report
**Managed Services Revenue.**Managed Services revenue increased $1.3 million, or 16.9%, to $9.0 million from $7.7 million during the six months ended June 30, 2024 and 2023, respectively. The net increase in Managed Services revenue, within our segments, consisted of the following:
Current report
Within our International Telecom segment, Managed Services revenue increased $0.6 million, or 25.0%, to $3.0 million from $2.4 million for the six months ended June 30, 2024 and 2023, respectively, as a result of our continued efforts to sell Managed Services solutions across all of our international markets.
Current report
Within our US Telecom segment, Managed Services revenue increased $0.8 million, or 15.1%, to $6.1 million from $5.3 million for the six months ended June 30, 2024 and 2023, respectively, as a result of our continued efforts to sell Managed Services solutions to all of our US markets.
Current report
Operating Expenses
Current report
**Cost of communication services and other.**Cost of communication services and other decreased by $0.3 million, or 0.2%, to $156.5 million from $156.8 million for the six months ended June 30, 2024 and 2023, respectively. The net increase in cost of communication services and other, within our segments, consisted of the following:
Current report
**Selling, general and administrative expenses.**Selling, general and administrative expenses decreased $4.3 million, or 3.5%, to $119.0 million from $123.3 million during the six months ended June 30, 2024 and 2023, respectively. The changes in selling, general and administrative expenses, within our segments, consisted of the following:
Current report
**Stock-based compensation.**Stock-based compensation for the six months ended June 30, 2024 and 2023 was $4.7 million and $4.5 million, respectively.
Current report
Transaction-related charges. We incurred a nominal amount of transaction-related charges during the six months ended June 30, 2024 and $0.5 million during the six months ended June 30, 2023.
Current report
** **In connection with our repositioning of our legacy wholesale roaming operations in our US Telecom segment, we recorded a $3.3 million restructuring charge during the six months ended June 30, 2023 primarily related to the decommissioning of certain cell sites.
Current report
Depreciation and amortization expenses. Depreciation and amortization expenses decreased by $2.7 million, or 3.7%, to $69.9 million from $72.6 million for the six months ended June 30, 2024 and 2023, respectively. The net decrease in depreciation and amortization expenses, within our segments, consisted primarily of the following:
Current report
Gain on disposition of assets. During the six months ended June 30, 2024, we recorded a gain on the disposition of assets of $16.4 million. This gain is comprised primarily of a $15.9 million gain related to the sale of real estate within our International Telecom segment and a $0.5 million gain pertaining to the previously completed disposition of our renewable energy assets.
Current report
During the six months ended June 30, 2023, we recorded a loss on the disposition of long-lived assets of $0.3 million within our US Telecom segment.
Current report
Interest income. Interest income was $0.6 million and a nominal amount for the six months ended June 30, 2024 and 2023, respectively.
Current report
Income taxes. Our effective tax rate for the six months ended June 30, 2024 and 2023 was 35.0% and 43.0%, respectively.
Current report
We recorded an income tax benefit of $5.8 million in relation to a pretax loss of $13.5 million for the six months ended June 30, 2023. The effective tax rate for the six months ended June 30, 2023 was primarily impacted by the following items (i) the mix of income generated among the jurisdictions in which we operate, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence and (iii) discrete items including a $4.0 million benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration, and a $1.3 million expense for interest on unrecognized tax positions.
Current report
**Net income (loss) attributable to ATN International, Inc. stockholders.**Net income (loss) attributable to ATN International, Inc. stockholders was $2.7 million of income for the six months ended June 30, 2024 as compared to $5.1 million of loss for the six months ended June 30, 2023.
Current report
*Cash provided by (used in) financing activities.*Cash provided by (used in) financing activities was $0.5 million of cash used in financing activities during the six months ended June 30, 2024 and $42.8 million of cash provided by financing activities during the six months ended June 30, 2023. The change of $43.3 million was primarily the result of a reduction in borrowings, net of repayments, of $38.0 million, and increase in cash used to repurchase our common stock (including shares repurchased from employees and directors to satisfy certain tax withholding obligations) of $3.7 million and an increase in cash used for the payment of dividends to our common stockholders of $0.8 million.
Removed paragraphs (13)
Previous report
US Telecom. Revenue within our US Telecom segment decreased by $1.7 million, or 1.8%, to $93.7 million from $95.4 million for the three months ended March 31, 2024 and 2023, respectively, primarily as a result of delays in the delivery of certain carrier service projects partially offset by an increase in construction revenue related to the FirstNet Transaction.
Previous report
from business customers decreased by $1.4 million as a result of a decrease in revenue generated from government programs. This decrease in revenue from business customers was partially offset by an increase in revenue from consumer customers of $0.3 million.
Previous report
Managed Services revenue remained consistent at $3.9 million for the three months ended March 31, 2024 and 2023. Managed Services revenue within both our International Telecom and US Telecom segments remained consistent at $1.3 million and $2.6 million, respectively.
Previous report
Cost of communication services in both our International and US Telecom segments may increase as a result of product mix with an expected increase in fixed revenue and as a result of continued inflationary pressure.
Previous report
Selling, general and administrative expenses may increase in our International Telecom segment to support our expanded operations. Within the US Telecom segment, we expect an increase as a result of our network expansions in Alaska and the southwest US. Our Corporate Overhead segment may also experience an increase in these expenses to support expanding operations. In addition, selling, general, and administrative expenses may increase as a result of continued inflationary pressure, issues facing the global supply chain and geopolitical uncertainty.
Previous report
During the three months ended March 31, 2023, we recorded a gain on the disposition of long-lived assets of $0.2 million within our US Telecom segment.
Previous report
**Income taxes.**Our effective tax rate for the three months ended March 31, 2024 and 2023 was (25.6%) and 9.5%, respectively.
Previous report
million for the three months ended March 31, 2024 and 2023, respectively, as a result of increased losses at our less than wholly owned subsidiaries within this segment.
Previous report
*Cash provided by financing activities.*Cash provided by financing activities decreased by $18.4 million to $19.6 million from $38.0 million for the three months ended March 31, 2024 and 2023, respectively. This decrease was primarily related to the decrease in borrowings, net of repayments, under our credit facilities of $19.5 million partially offset by the $0.8 million increase in cash used for the repurchase of our common stock (including shares repurchased
Previous report
from employees to satisfy certain tax withholding obligations as well as repurchases under our Stock Repurchase Plans as discussed below).
Previous report
On December 23, 2022, Alaska Communications entered into a First Amendment Agreement (the “ACS Amendment”). The ACS Amendment amends the Alaska Credit Facility to increase its Revolving Credit Commitment from $35.0 million to $75.0 million and Term Loan Commitment from $210.0 million to $230.0 million. As a part of the transaction, the Term Loan commitment was fully funded as the outstanding Revolving Credit Commitment balance was transferred.
Previous report
In addition to the above changes, the ACS Amendment replaced the calculation of interest from an applicable margin applied to LIBOR with the same applicable margin applied to the Secured Overnight Financing Rate (“SOFR”) plus a 10-basis point adjustment.
Previous report
As of March 31, 2024, Alaska Communications Systems Holdings had $5.3 million outstanding and no available borrowings under the Alaska Term Facility.
Reworded paragraphs (70)
Previous wording
In July 2019, we entered into a Network Build and Maintenance Agreement with AT&T Mobility, LLC (“AT&T”) that we subsequently amended through March 31, 2024 (the “FirstNet Agreement”). In connection with the FirstNet Agreement, we are building a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) in or near our current operating areas in the western United States. Pursuant to the FirstNet Agreement and subject to certain limitations contained therein, all cell sites must be completed and accepted within a specified period of time. Since the inception of the project through March 31, 2024, we have recorded $73.2 million in construction revenue and expect to record approximately $9.0 million in additional construction revenue and related costs as sites are completed. We expect to substantially complete the build by the end of 2024 with the remainder to be completed in early 2025. Revenues from construction are expected to have minimal impact on operating income.
Current wording
In July 2019, we entered into a Network Build and Maintenance Agreement with AT&T Mobility, LLC (“AT&T”) that we subsequently amended through December 31, 2023 (the “FirstNet Agreement”). In connection with the FirstNet Agreement, we are building a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) in or near our current operating areas in the western United States. Pursuant to the FirstNet Agreement and subject to certain limitations contained therein, all cell sites must be completed and accepted within a specified period of time. Since the inception of the project through June 30, 2024, we have recorded $75.6 million in construction revenue and expect to record approximately $8.0 million in additional construction revenue and related costs as sites are completed. We expect to substantially complete the build by the end of 2024 with the remainder to be completed in early 2025. Revenues from construction are expected to have minimal impact on operating income.
Previous wording
We recognize revenue from several government funded programs including the USF, a subsidy program managed by the Federal Communications Commission (“FCC”), and the Alaska Universal Service Fund (“AUSF”), a similar program managed by the Regulatory Commission of Alaska (the “RCA”). USF funds are disbursed to telecommunication providers through four programs: the High Cost Program; the Low Income Program (“Lifeline Program”); the Schools and Libraries Program (“E-Rate Program”); and the Rural Health Care Support Program. Our International Telecom segment receives $5.5 million of legacy frozen high cost support funding in the US Virgin Islands. This funding expires on December 31, 2025.
Current wording
We recognize revenue from several government funded programs including the USF, a subsidy program managed by the Federal Communications Commission (“FCC”), and the Alaska Universal Service Fund (“AUSF”), a similar program managed by the Regulatory Commission of Alaska (the “RCA”). USF funds are disbursed to telecommunication providers through four programs: the High Cost Program; the Low Income Program (“Lifeline Program”); the Schools and Libraries Program (“E-Rate Program”); and the Rural Health Care Support Program. Our International Telecom segment receives $5.5 million of legacy frozen high cost support funding in the US Virgin Islands. This funding expires on December 31, 2025. Additionally, we recognize revenue from the FCC’s Affordable Connectivity Program (“ACP”) and the Emergency Connectivity Fund (“ECF”). The ACP provides eligible low-income consumers with a monthly subsidy for broadband connectivity and the ECF provides schools and libraries with subsidies for broadband connectivity. Funding under the ACP and ECF programs expired in the second quarter of 2024.
Previous wording
We also recognize revenue from the Connect America Fund Phase II program (“CAF II”) which offers subsidies to carriers to expand broadband coverage in designated areas. Under CAF II, our US Telecom segment will receive an aggregate of $27.7 million annually through December 2025 and an aggregate of $8.0 million annually from January 2026 through July 2028.
Current wording
We also recognize High Cost support revenue from the Connect America Fund Phase II program (“CAF II”) and the Enhanced Alternative Connect America Cost Model program (“E-ACAM”). These programs offer subsidies to carriers to expand broadband coverage in designated areas. Under CAF II, we expect to receive an aggregate of $27.7 million annually through December 2025 and an aggregate of $8.0 million annually from January 2026 through July 2028. Under E-ACAM, we expect to receive a total of $118.2 million over a 15 year period beginning in 2024. The annual E-ACAM funding is approximately $9 million from 2024 through 2030 and ultimately decreasing to over time $6 million in 2038.
Previous wording
We were awarded approximately $22.7 million over 10 years to provide broadband and voice coverage to over 10,000 households in the United States (not including Alaska) under the 2020 Rural Digital Opportunity Fund Phase I Auction (“RDOF”). During the three months ended March 31, 2024 and 2023, we recorded $0.1 million and $0.6 million of revenue from the RDOF program, respectively.
Current wording
We were awarded approximately $22.7 million over 10 years to provide broadband and voice coverage to over 10,000 households in the United States (not including Alaska) under the 2020 Rural Digital Opportunity Fund Phase I Auction (“RDOF”). During the six months ended June 30, 2024, we entered into agreements to transfer $13.0 million of RDOF obligations. The transfer applications are pending regulatory approval.
Previous wording
During the three months ended March 31, 2024, we disbursed capital expenditures of $3.4 million under these programs and received reimbursement of $1.9 million. These cash flows are classified as investing activities in our statement of cash flows.
Current wording
During the three months ended June 30, 2024, we disbursed capital expenditures of $3.6 million under these programs and received reimbursement of $2.3 million. These cash flows are classified as investing activities in our statement of cash flows.
Previous wording
In addition, we partner with tribal governments to obtain grants under various government grant programs including, but not limited to, the Tribal Broadband Connectivity Program (“TBCP”) and the Rural Development Broadband ReConnect Program (“ReConnect”). These programs are administered by United States government agencies to deploy broadband connectivity in certain underserved areas. We were identified as a sub recipient of grants under these programs totaling $192.6 million as of March 31, 2024. Through March 31, 2024, we have received $10.4 million of funding under these programs and spent $10.1 million on construction obligations. These amounts are recorded as operating cash flows in the company’s statement of cash flows.
Current wording
to deploy broadband connectivity in certain underserved areas. We were identified as a sub recipient of grants under these programs totaling $192.6 million as of June 30, 2024. Through June 30, 2024, we have received $11.3 million of funding under these programs and spent $11.4 million on construction obligations. These amounts are recorded as operating cash flows in the company’s statement of cash flows.
Previous wording
We have incurred total expenditures of $80.7 million related to this project, of which $16.3 million were incurred in 2024. Of these total expenditures, $61.0 million were classified as capital.
Current wording
We have incurred total expenditures of $112.0 million related to this project, of which $47.7 million were incurred in 2024. Of these total expenditures, $87.4 million were classified as capital.
Previous wording
have received $14.4 million of reimbursement under the program, of which $5.8 million was classified as operating cash inflows and $8.6 million was classified as investing cash inflows in our statement of cash flows.
Current wording
At June 30, 2024, $27.3 million of capital expenditures were accrued and unpaid. We expect to be reimbursed, within the next twelve months, for all amounts spent to date. During the six months ended June 30, 2024 we have received $52.1 million of reimbursement under the program, of which $10.7 million was classified as operating cash inflows and $41.4 million was classified as investing cash inflows in our statement of cash flows.
Previous wording
(1) Reconciling items refer to corporate overhead costs and consolidating adjustments.
Current wording
(1) Corporate and other items refer to corporate overhead costs and consolidating adjustments.
Previous wording
International Telecom. Revenues within our International Telecom segment increased $2.7 million, or 3.0%, to $93.1 million from $90.4 million for the three months ended March 31, 2024 and 2023, respectively, as a result of network upgrades and expansions as well as improved customer care and marketing strategies which led to an increase in mobile and fixed subscribers including an increase in the number of homes passed by high-speed data solutions which allowed us to migrate legacy copper customers to more durable fiber services.
Current wording
International Telecom. Revenues within our International Telecom segment increased $3.4 million, or 3.7%, to $95.4 million from $92.0 million for the three months ended June 30, 2024 and 2023, respectively, primarily as a result of an increase in Fixed Revenues which increased $2.5 million, or 4.2%, to $62.2 million from $59.7 million for the three months ended June 30, 2024 and 2023, respectively. This increase in Fixed Revenues was primarily the result of network upgrades and expansions as well as improved customer care and marketing strategies which led to an increase in both business and consumer subscribers. In addition, an increase in the number of homes passed by high-speed data solutions allowed us to migrate legacy copper customers to more durable fiber services.
Previous wording
As a result, our International Telecom segment’s operating income decreased $2.1 million, or 15.2%, to $11.7 million from $13.8 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
As a result, our International Telecom segment’s operating income increased $17.8 million, or 121.9%, to $32.4 million from $14.6 million for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Operating expenses within our US Telecom segment decreased $6.6 million, or 6.6%, to $93.1 million from $99.7 million for the three months ended March 31, 2024 and 2023, respectively, as a result of certain cost reduction programs that were implemented in previous periods partially offset by an increase in transport costs and costs associated with project-related revenues.
Current wording
Operating expenses within our US Telecom segment decreased $9.9 million, or 10.2%, to $87.0 million from $96.9 million for the three months ended June 30, 2024 and 2023, respectively, as a result of certain cost savings initiatives that were implemented in previous periods.
Previous wording
As a result of the above, our US Telecom segment’s operating income (loss) increased by $4.9 million to income of $0.6 million from a loss of $4.3 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
As a result of the above, our US Telecom segment’s operating income (loss) increased by $3.3 million to income of $0.9 million from a loss of $2.4 million for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Mobility revenue decreased by $0.4 million, or 1.5%, to $26.9 million for the three months ended March 31, 2024 from $27.3 million for the three months ended March 31, 2023. Mobility revenue from consumer customers decreased by $1.5 million partially offset by an increase in Mobility revenue from business customers of $1.1 million.
Current wording
Mobility revenue decreased by $0.2 million, or 0.7%, to $27.6 million for the three months ended June 30, 2024 from $27.8 million for the three months ended June 30, 2023. Mobility revenue from consumer customers decreased by $1.6 million partially offset by an increase in Mobility revenue from business customers of $1.4 million.
Previous wording
The decrease in Mobility revenue, within our segments, consisted of the following:
Current wording
The net decrease in Mobility revenue, within our segments, consisted of the following:
Previous wording
Mobility revenue within our International Telecom segment may increase as a result of continued network upgrades and our marketing efforts to increase the number of our subscribers. However, increased competition and regulatory changes within our international markets may limit that revenue growth. We expect that Mobility revenue within our US Telecom segment will decrease over time as we put more emphasis on other revenue sources within that segment.
Current wording
Mobility revenue within our International Telecom segment may increase as a result of continued network upgrades and our marketing efforts to increase the number of our subscribers, data usage, and to convert our current subscriber base to higher margin prepaid and postpaid plans. However, we believe that increased competition and regulatory changes within our international markets may limit that revenue growth. We expect that Mobility revenue within our US Telecom segment will decrease over time as we put more emphasis on other revenue sources within that segment.
Previous wording
Fixed Revenue**.**Fixed revenue is primarily generated by broadband, voice, and video service revenues provided to retail and business customers over our wireline networks. Fixed revenue within our US Telecom segment also includes awards from the Connect America Fund Phase II and Emergency Connectivity Fund programs in the western United States and Alaska, as well as revenue from the Alaska Universal Service Fund. Within our International Telecom segment, Fixed revenue also includes funding under the FCC’s High Cost Program in the US Virgin Islands.
Current wording
**Fixed Revenue.**Fixed revenue is primarily generated by broadband, voice, and video service revenues provided to retail and business customers over our wireline networks. Fixed revenue within our US Telecom segment also includes awards from the Connect America Fund Phase II program and, through early April 2024, the Emergency Connectivity Fund program in the western United States and Alaska, as well as revenue from the Alaska Universal Service Fund. Within our International Telecom segment, Fixed revenue also includes funding under the FCC’s High Cost Program in the US Virgin Islands.
Previous wording
Fixed revenue increased by $1.4 million, or 1.2%, to $119.2 million from $117.8 million for the three months ended March 31, 2024 and 2023, respectively. Of this increase, $0.1 million and $1.3 million relate to increases in revenue from business and consumer customers, respectively. The increase in Fixed revenue, within our segments, consisted of the following:
Current wording
Fixed revenue decreased by $3.1 million, or 2.6%, to $114.7 million from $117.8 million for the three months ended June 30, 2024 and 2023, respectively. Of this net decrease of $3.1 million, revenue from business customers decreased by $3.2 million, partially offset by an increase in revenue from consumer customers of $0.1 million. The increase in Fixed revenue, within our segments, consisted of the following:
Previous wording
Within our US Telecom segment, we expect Fixed revenue to decrease in the short term as the COVID-19 related Emergency Connectivity Fund program was discontinued beyond the first quarter of 2024. Over time, we expect these decreases to be partially offset by increases in other business revenue in Alaska and our western United States operations, as we further deploy fiber and fiber-fed broadband access to both consumers and businesses.
Current wording
Within our US Telecom segment, we expect Fixed revenue to decrease in the short term as a result of the impact of the expiration of the Emergency Connectivity Fund. Over time, we expect these decreases to be partially offset by increases in other business revenue in Alaska and our western United States operations, as we further deploy fiber and fiber-fed broadband access to both consumers and businesses.
Previous wording
Carrier Services revenue decreased by $2.2 million, or 6.1%, to $33.6 million from $35.8 million for the three months ended March 31, 2024 and 2023, respectively. The decrease, within our segments, consisted of the following:
Current wording
Carrier Services revenue decreased by $1.8 million, or 5.1%, to $33.7 million from $35.5 million for the three months ended June 30, 2024 and 2023, respectively. The decrease, within our segments, consisted of the following:
Previous wording
Within our International Telecom segment, Carrier Services revenue may continue to increase if international travel continues to increase. Such increases, however, may be partially offset by a decrease within our international long-distance business in Guyana as consumers seek to use alternative technology services to place long-distance calls.
Current wording
Within our International Telecom segment, Carrier Services revenue may increase if international travel increases. Such increases, however, may be partially offset by a decrease within our international long-distance business in Guyana as consumers seek to use alternative technology services to place long-distance calls.
Previous wording
**Other Communications Services Revenue.**Other Communications Services revenue includes miscellaneous services that the operations within our International Telecom segment provide to retail subscribers and project-related revenue generated within our US Telecom segment. Other Communications Services revenue increased by $1.1 million to $1.6 million from $0.5 million for the three months ended March 31, 2024 and 2023, respectively, primarily as a result of $0.2 million and $0.7 million of non-recurring project-related revenue being recognized within our International Telecom and US Telecom segments, respectively, during the three months ended March 31, 2024.
Current wording
**Other Communications Services Revenue.**Other Communications Services revenue includes miscellaneous services that the operations within our International Telecom segment provide to retail subscribers and project-related revenue generated within both our International and US Telecom segments. Other Communications Services revenue increased by $0.9 million to $1.4 million from $0.5 million for the three months ended June 30, 2024 and 2023, respectively, primarily as a result of non-recurring project-related revenue being recognized within both our International Telecom and US Telecom segments, respectively, during the three months ended June 30, 2024.
Previous wording
Construction revenue represents revenue generated within our US Telecom segment for the construction of network cell sites related to the FirstNet Agreement. During the three months ended March 31, 2024 and 2023, Construction revenue increased to $1.6 million from $0.6 million, respectively, as a result of an increase in the number of sites completed during 2024 as compared to 2023. We expect to substantially complete the build by the end of 2024 with the remainder to be completed in early 2025.
Current wording
Construction revenue represents revenue generated within our US Telecom segment for the construction of network cell sites related to the FirstNet Agreement. During the three months ended June 30, 2024 and 2023, Construction revenue decreased to $0.8 million from $1.0 million, respectively, as a result of a decrease in the number of sites completed during 2024 as compared to 2023. We expect to substantially complete the build by the end of 2024 with the remainder to be completed in early 2025.
Previous wording
**Managed Services Revenue.**Managed Services revenue is generated within both our International and US Telecom segments and includes network, application, infrastructure, and hosting services.
Current wording
**Managed Services Revenue.**Managed Services revenue is generated within both our International and US Telecom segments and includes network, application, infrastructure, and hosting services. Managed Services revenue increased $1.3 million, or 34.2%, to $5.1 million from $3.8 million during the three months ended June 30, 2024 and 2023, respectively. The net increase in Managed Services revenue, within our segments, consisted of the following:
Previous wording
Cost of communication services and other increased by $1.4 million, or 1.8%, to $80.4 million from $79.0 million for the three months ended March 31, 2024 and 2023, respectively. The net increase in cost of communication services and other, within our segments, consisted of the following:
Current wording
Cost of communication services and other decreased by $1.6 million, or 2.1%, to $76.1 million from $77.7 million for the three months ended June 30, 2024 and 2023, respectively. The net decrease in cost of communication services and other, within our segments, consisted of the following:
Previous wording
Cost of construction revenue. Cost of construction revenue includes the expenses incurred in connection with the construction of and the delivery to AT&T of cell sites in accordance with our FirstNet Agreement. During the three months ended March 31, 2024 and 2023, cost of construction revenue increased to $1.6 million from $0.6 million as a result of an increase in the number of sites completed during 2024 as compared to 2023. We expect to substantially complete the build by the end of 2024 with the remainder to be completed in early 2025.
Current wording
Cost of construction revenue. Cost of construction revenue includes the expenses incurred in connection with the construction of and the delivery to AT&T of cell sites in accordance with our FirstNet Agreement. During the three months ended June 30, 2024 and 2023, cost of construction revenue decreased to $0.8 million from $1.0 million as a result of a decrease in the number of sites completed during 2024 as compared to 2023. We expect to substantially complete the build by the end of 2024 with the remainder to be completed in early 2025.
Previous wording
Selling, general and administrative expenses remained consistent at $61.3 million for the three months ended March 31, 2024 and 2023. The changes in selling, general and administrative expenses, within our segments, consisted of the following:
Current wording
Selling, general and administrative expenses decreased $4.2 million, or 6.8%, to $57.7 million from $61.9 million for the three months ended June 30, 2024 and 2023, respectively. The changes in selling, general and administrative expenses, within our segments, consisted of the following:
Previous wording
Stock-based compensation for the three months ended March 31, 2024 and 2023 was $1.9 million and $1.8 million, respectively.
Current wording
Stock-based compensation for the three months ended June 30, 2024 and 2023 was $2.8 million and $2.7 million, respectively.
Previous wording
We incurred a nominal amount of transaction-related charges during the three months ended March 31, 2024 and 2023.
Current wording
We incurred a nominal amount of transaction-related charges during the three months ended June 30, 2024 and $0.4 million during the three months ended June 30, 2023.
Previous wording
Depreciation and amortization expenses decreased by $2.1 million, or 5.8%, to $34.3 million from $36.4 million for the three months ended March 31, 2024 and 2023, respectively. The net decrease in depreciation and amortization expenses, within our segments, consisted primarily of the following:
Current wording
Depreciation and amortization expenses decreased by $0.6 million, or 1.7%, to $35.6 million from $36.2 million for the three months ended June 30, 2024 and 2023, respectively. The net decrease in depreciation and amortization expenses, within our segments, consisted primarily of the following:
Previous wording
We expect depreciation and amortization expenses to decrease within our US Telecom segments as some of our tangible and intangible assets we acquired are now fully depreciated.
Current wording
We expect depreciation and amortization expenses to increase in our International Telecom segment as a result of recent capital expenditures and decrease within our US Telecom segments as some of our tangible and intangible assets we acquired are now fully depreciated.
Previous wording
Amortization of intangibles from acquisitions decreased by $1.2 million to $2.0 million from $3.2 million for the three months ended March 31, 2024 and 2023, respectively, as a result of certain intangible assets becoming fully amortized in recent periods.
Current wording
Amortization of intangibles from acquisitions decreased by $1.2 million to $1.9 million from $3.1 million for the three months ended June 30, 2024 and 2023, respectively, as a result of certain intangible assets becoming fully amortized in recent periods.
Previous wording
Gain on disposition of assets. During the three months ended March 31, 2024, we recorded a gain on the disposition of assets of $0.5 million primarily relating to the previously completed disposition of our renewable energy assets.
Current wording
Gain (loss) on disposition of assets. During the three months ended June 30, 2024, we recorded a gain on the disposition of assets of $15.9 million primarily relating to the sale of real estate in our International Telecom segment.
Previous wording
Interest income. Interest income represents interest earned on our cash, cash equivalents, restricted cash and short-term investment balances. Interest income was $0.4 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Interest income. Interest income represents interest earned on our cash, cash equivalents, restricted cash and short-term investment balances. Interest income was $0.1 million and a nominal amount for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Interest expense increased to $11.5 million from $8.8 million for the three months ended March 31, 2024 and 2023, respectively, as additional interest expense was incurred as a result of an increase in borrowings under our credit facilities and a year-over-year increase in the term SOFR rate on all floating-rate borrowings under those facilities.
Current wording
Interest expense increased to $12.3 million from $10.4 million for the three months ended June 30, 2024 and 2023, respectively, as additional interest expense was incurred as a result of an increase in borrowings under our credit facilities and a year-over-year increase in the term SOFR rate on all floating-rate borrowings under those facilities.
Previous wording
Interest expense may increase in future periods as a result of increases in interest rates and future borrowings.
Current wording
Interest expense may increase in future periods as a result of additional borrowings or an increase in interest rates.
Previous wording
For the three months ended March 31, 2023, other income (expenses) was $0.2 million of income primarily related to gains from our noncontrolling investments.
Current wording
For the three months ended June 30, 2023, other income (expense) was $2.2 million of income primarily related to gains from our noncontrolling investments.
Previous wording
We recorded an income tax benefit of $0.7 million in relation to a pretax loss of $7.8 million for the three months ended March 31, 2023. The effective tax rate for the three months ended March 31, 2023 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which we operate, (ii) a net increase related to valuation allowances placed on certain deferred tax assets and (iii) discrete items including $0.6 million of expense for interest on unrecognized tax positions.
Current wording
We recorded an income tax benefit of $5.1 million in relation to a pretax loss of $5.7 million for the three months ended June 30, 2023. The effective tax rate for the three months ended June 30, 2023 was primarily impacted by the following items (i) the mix of income generated among the jurisdictions in which we operate, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence and (iii) discrete items including a $4.0 million benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration and a $0.7 million expense for interest on unrecognized tax positions.
Previous wording
Net income attributable to noncontrolling interests, net of tax. Net income attributable to noncontrolling interests, net of tax reflected an allocation of $1.6 million and $1.2 million of losses generated by our less than wholly owned subsidiaries for the three months ended March 31, 2024 and 2023, respectively. Changes in net income attributable to noncontrolling interests, net of tax, within our segments, consisted of the following:
Current wording
Net income (loss) attributable to noncontrolling interests, net of tax. Net income (loss) attributable to noncontrolling interests, net of tax reflected an allocation of $2.3 million of income and $1.4 million of losses generated by our less than wholly owned subsidiaries for the three months ended June 30, 2024 and 2023, respectively. Changes in net income (loss) attributable to noncontrolling interests, net of tax, within our segments, consisted of the following:
Previous wording
**Net loss attributable to ATN International, Inc. stockholders.**Net loss attributable to ATN International, Inc. stockholders was $6.3 million for the three months ended March 31, 2024 as compared to $5.9 million for the three months ended March 31, 2023.
Current wording
**Net income (loss) attributable to ATN International, Inc. stockholders.**Net income (loss) attributable to ATN International, Inc. stockholders was $9.0 million of income for the three months ended June 30, 2024 as compared to $0.8 million of income for the three months ended June 30, 2023.
Showing the first 40 of 70 pairs. Open the source sections for the rest.
Rearranged current paragraphs (15)
Current report — wording carried from elsewhere
In addition, we partner with tribal governments to obtain grants under various government grant programs including, but not limited to, the Tribal Broadband Connectivity Program (“TBCP”) and the Rural Development Broadband ReConnect Program (“ReConnect”). These programs are administered by United States government agencies
Current report — wording carried from elsewhere
The following represents selected segment information for the six months ended June 30, 2024 and 2023 (in thousands):
Current report — wording carried from elsewhere
A comparison of our segment results for the six months ended June 30, 2024, and 2023 is as follows:
Current report — wording carried from elsewhere
International Telecom. Revenues within our International Telecom segment increased $6.0 million, or 3.3%, to $188.4 million from $182.4 million for the six months ended June 30, 2024 and 2023, respectively, primarily as a result of an increase in Fixed Revenues which increased $4.9 million, or 4.1%, to $123.5 million from $118.6 million for the six months ended June 30, 2024 and 2023, respectively. This increase in Fixed Revenues was primarily the result of network upgrades and expansions as well as improved customer care and marketing strategies which led to an increase in both business and consumer subscribers. In addition, an increase in the number of homes passed by high-speed data solutions allowed us to migrate legacy copper customers to more durable fiber services.
Current report — wording carried from elsewhere
As a result of the above, our US Telecom segment’s operating income (loss) increased by $8.2 million to income of $1.5 million from a loss of $6.7 million for the six months ended June 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
The following represents a year over year discussion and analysis of our results of operations for the six months ended June 30, 2024 and 2023 (in thousands):
Current report — wording carried from elsewhere
The net decrease in Mobility revenue, within our segments, consisted of the following:
Current report — wording carried from elsewhere
**Other Communications Services Revenue.**Other Communications Services revenue increased by $1.9 million to $2.9 million from $1.0 million for the six months ended June 30, 2024 and 2023, respectively, primarily as a result of non-recurring project-related revenue being recognized within our International Telecom and US Telecom segments, respectively, during the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Cost of construction revenue. During the six months ended June 30, 2024 and 2023, cost of construction revenue increased to $2.4 million from $1.6 million as a result of an increase in the number of sites completed during 2024 as compared to 2023.
Current report — wording carried from elsewhere
Amortization of intangibles from acquisitions.* *Amortization of intangibles from acquisitions decreased by $2.5 million to $3.9 million from $6.4 million for the six months ended June 30, 2024 and 2023, respectively, as a result of certain intangible assets becoming fully amortized in recent periods.
Current report — wording carried from elsewhere
**Interest expense.**Interest expense increased to $23.9 million from $19.3 million for the six months ended June 30, 2024 and 2023, respectively, as additional interest expense was incurred as a result of an increase in borrowings under our credit facilities and a year-over-year increase in the term SOFR rate on all floating-rate borrowings under those facilities.
Current report — wording carried from elsewhere
For the six months ended June 30, 2023, other income (expenses) was $2.4 million of income primarily related to gains from our noncontrolling investments.
Current report — wording carried from elsewhere
Our effective tax rate is based upon estimated income before provision for income taxes for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax contingencies. Our consolidated tax rate will continue to be impacted by any transactional or one-time items in the future and the mix of income in any given year generated among the jurisdictions in which we operate. While we believe we have adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from our accrued positions as a result of uncertain and complex applications of tax law and regulations. Additionally, the recognition and measurement of certain tax benefits include estimates and judgments by management. Accordingly, we could record additional provisions or benefits for US federal, state, and foreign tax matters in future periods as new information becomes available.
Current report — wording carried from elsewhere
Net income (loss) attributable to noncontrolling interests, net of tax. Net income (loss) attributable to noncontrolling interests, net of tax reflected an allocation of $0.7 million of income and $2.6 million of losses generated by our less than wholly owned subsidiaries for the six months ended June 30, 2024 and 2023, respectively. Changes in net income (loss) attributable to noncontrolling interests, net of tax, within our segments, consisted of the following:
Current report — wording carried from elsewhere
On a per diluted share basis, net income was break even per diluted share for the six months ended June 30, 2024 as compared to a loss of $0.48 per diluted share for the six months ended June 30, 2023. Such per share amounts were negatively impacted by accrued preferred dividends of $2.7 million and $2.3 million for the six months ended June 30, 2024 and 2023, respectively.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
We also recognize revenue from the FCC’s Affordable Connectivity Program (“ACP”) and the Emergency Connectivity Fund (“ECF”). The ACP provides eligible low-income consumers with a monthly subsidy for broadband
Previous report — wording carried elsewhere
connectivity and the ECF provides schools and libraries with subsidies for broadband connectivity. Funding under the ACP and ECF programs is set to expire in the second quarter of 2024.
Previous report — wording carried elsewhere
At March 31, 2024, $33.4 million of capital expenditures were accrued and unpaid. We expect to be reimbursed for all amounts spent within the next twelve months. During the three months ended March 31, 2024 we
Previous report — wording carried elsewhere
The Alaska Term Facility contains events of default customary for facilities of this type.