Second Quarter Financial Highlights:

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

BEVERLY, Mass., July 27, 2017 (GLOBE NEWSWIRE) -- ATN (NASDAQ:ATNI) today reported results for the second quarter and six months ended June 30, 2017. Unless otherwise indicated, the discussion of the Company’s results is focused on its continuing operations, and comparisons are to the same period in the prior year.

Business Review and Outlook

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

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

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

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

Second Quarter 2017 Financial Results

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

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

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

Second Quarter 2017 Operating Highlights

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

U.S. Telecom

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

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

International Telecom

International Telecom consists of a broad range of information and communications services including wireline and wireless data, internet, voice and video service revenues from our operations in Bermuda and the Caribbean including the U.S. Virgin Islands. International Telecom revenues were $81.4 million in the second quarter of 2017, a 62% increase from the $50.4 million reported in the second quarter of 2016.  Our acquisitions in Bermuda and the U.S. Virgin Islands in 2016 together added $30.6 million of incremental revenues during the current quarter and were responsible for this increase.

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

Renewable Energy

Renewable Energy segment revenues are generated principally by the sale of energy and solar renewable energy credits from our 28 commercial solar projects in the United States.  For the second quarter of 2017, revenues from our renewable energy business were $4.9 million, down 14% from the $5.7 million in the prior year mostly due to the expiration of certain renewable energy credits.  Adjusted EBITDA¹ for the Renewable Energy segment was $2.7 million in the second quarter, down $1.1 million from the prior year quarter due to the expiration of the renewable energy revenue credits and increased operating expenses from the ramp up of our solar business in India ahead of the offsetting revenue.   

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents at June 30, 2017 were $231.6 million.  In addition, the Company held $7.8 million of short-term investments and $16.9 million of restricted cash.  Net cash provided by operating activities was $65.5 million for the first six months of 2017, compared with $50.7 million for the first six months of 2016.    The increase in net cash provided by operating activities is due to the 2017 growth in revenue as a result of the 2016 acquisitions in the U.S. Virgin Islands and Bermuda, partially offset by the net impact of 2016 transaction-related charges and impairments of assets, and changes in working capital.  During the first six months of 2017, the Company received $22.6 million from the sale of its U.S. wireline business as well as the sales of other smaller international telecom business lines and paid an additional $36.8 million to purchase U.S. spectrum licenses.  Capital expenditures were $78.5 million for the first six months of 2017. The Company expects full year 2017 capital expenditures for its domestic and international telecom businesses to be between the $95 million to $115 million range estimated at the end of last year.  Expenditures include major network expansions and upgrades in multiple markets, including the recently acquired Bermuda and U.S. Virgin Islands businesses, and therefore are higher than what we would consider to be ordinary course capital expenditures.  These projects include extensive fiber builds and upgrades as well as market-wide mobile data network upgrades.  Once complete, we expect aggregate capital expenditures in existing telecom markets to decline significantly in 2018.  In addition, capital expenditures for our renewable energy business are expected to be in the range of $30 million to $45 million for the full year 2017, primarily related to ongoing construction of our solar projects in India.

Conference Call Information

ATN will host a conference call on Friday, July 28, 2017 at 8:15 a.m. Eastern Time (ET) to discuss its second quarter 2017 results. The call will be hosted by Michael Prior, President and Chief Executive Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are US/Canada: (877) 734-4582 and International: (678) 905-9376, conference ID 55443462. A replay of the call will be available at ir.atni.com beginning at 1:00 p.m. (ET) on Friday, July 28, 2017.

About ATN

ATN International, Inc. (Nasdaq:ATNI), headquartered in Beverly, Massachusetts, provides telecommunications services to rural, niche and other under-served markets and geographies in the United States, Bermuda and the Caribbean and owns and operates solar power systems in various locations in the United States and India. Through our operating subsidiaries, we (i) provide both wireless and wireline connectivity to residential and business customers, including a range of mobile wireless solutions, high speed internet services, video services and local exchange services, (ii) provide distributed solar electric power to corporate, utility and municipal customers and (iii) are the owner and operator of terrestrial and submarine fiber optic transport systems. For more information, please visit www.atni.com.

Cautionary Language Concerning Forward Looking Statements

This press release contains forward-looking statements relating to, among other matters, our future financial performance and results of operations; the competitive environment in our key markets, demand for our services and industry trends; the pace of expansion and improvement of our telecommunications network and renewable energy operations including our level of estimated future capital expenditures and our realization of the benefits of these investments; the anticipated timing of our build schedule and the commencement of energy production of our India renewable energy projects; and management’s plans and strategy for the future. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events or results.  Actual future events and results could differ materially from the events and results indicated in these statements as a result of many factors, including, among others, (1)  our ability to operate our newly acquired businesses in Bermuda and the U.S. Virgin Islands and both integrate these operations into our existing operations and execute planned network expansions and upgrades; (2) the general performance of our operations, including operating margins, revenues, capital expenditures, and the future growth and retention of our major customers and subscriber base and consumer demand for solar power; (3) government regulation of our businesses, which may impact our FCC and other telecommunications licenses or our renewables business; (4) economic, political and other risks facing our operations; (5) our ability to maintain favorable roaming arrangements; (6) our ability to efficiently and cost-effectively upgrade our networks and IT platforms to address  rapid and significant technological changes in the telecommunications industry; (7) the loss of or an inability to recruit skilled personnel in our various jurisdictions, including key members of management; (8) our ability to find investment or acquisition or disposition opportunities that fit our strategic goals for the Company; (9) increased competition; (10) our ability to expand our renewable energy business; (11) our reliance on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure; (12) the adequacy and expansion capabilities of our network capacity and customer service system to support our customer growth; (13) the occurrence of weather events and natural catastrophes; (14) our continued access to capital and credit markets; (15) the risk of currency fluctuation for those markets in which we operate and (16) our ability to realize the value that we believe exists in our businesses.  These and other additional factors that may cause actual future events and results to differ materially from the events and results indicated in the forward-looking statements above are set forth more fully under Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 1, 2017 and the other reports we file from time to time with the SEC.  The Company undertakes no obligation and has no intention to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors that may affect such forward-looking statements.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release also contains non-GAAP financial measures. Specifically, ATN has presented an Adjusted EBITDA measure.  Adjusted EBITDA is defined as net income attributable to ATN stockholders before bargain purchase gain, impairment of long-lived assets, restructuring charges, interest, taxes, depreciation and amortization, transaction-related charges, other income or expense, and net income attributable to non-controlling interests.    The Company believes that the inclusion of this non-GAAP financial measure helps investors gain a meaningful understanding of the Company's core operating results and enhances comparing such performance with prior periods. ATN’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measure included in this press release is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measure is set forth in the text of, and the accompanying tables to, this press release.

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

 

	Table 1
	ATN International, Inc.
	Unaudited Condensed Consolidated Balance Sheets
	(in Thousands)
		June 30,			December 31,
		2017			2016
	Assets:
	Cash and cash equivalents	$	231,640		$	269,721
	Restricted cash		714			524
	Short-term investments		7,755			9,237
	Other current assets		104,226			87,887
	Total current assets		344,335			367,369
	Long-term restricted cash		16,157			18,113
	Property, plant and equipment, net		649,734			647,712
	Goodwill and other intangible assets, net		171,945			126,193
	Other assets		19,305			38,831
	Total assets	$	1,201,476		$	1,198,218
	Liabilities and Stockholders’ Equity:
	Current portion of long-term debt	$	9,850		$	12,440
	Taxes payable		8,326			13,531
	Other current liabilities		133,715			124,134
	Total current liabilities		151,891			150,105
	Long-term debt, net of current portion	$	149,832		$	144,383
	Deferred income taxes		48,526			46,622
	Other long-term liabilities		30,777			47,939
	Total long-term liabilities		229,135			238,944
	Total liabilities		381,026			389,049
	Total ATN International, Inc.’s stockholders’ equity		681,709			677,055
	Non-controlling interests		138,741			132,114
	Total equity		820,450			809,169
	Total liabilities and stockholders’ equity	$	1,201,476		$	1,198,218

 

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

 

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

 

														Table 4
	ATN International, Inc.
	Selected Segment Financial Information
	(In Thousands)
	For the three months ended June 30, 2017 is as follows:
		U.S.  Telecom			International Telecom			Renewable Energy			Corporate and Other *			Total
	Statement of Operations Data:
	Revenue
	Wireless	$	34,505		$	19,955		$	-		$	-		$	54,460
	Wireline		2,057			59,402			-			-			61,459
	Renewable Energy		-			-			4,891			-			4,891
	Equipment and Other		416			2,013			6			-			2,435
	Total Revenue	$	36,978		$	81,370		$	4,897		$	-		$	123,245
	Operating Income (Loss)	$	13,147		$	10,805		$	846		$	(8,955	)	$	15,843
	Non-controlling interest ( net income or (loss) )	$	(1,756	)	$	(3,024	)	$	(246	)	$	-		$	(5,026	)
	Non GAAP measure:
	Adjusted EBITDA	$	19,393		$	23,939		$	2,676		$	(7,763	)	$	38,245
	Balance Sheet Data (at June 30, 2017):
	Cash, cash equivalents and investments	$	14,353		$	98,684		$	18,679		$	107,679		$	239,395
	Total current assets		43,730			152,351			27,209			121,045			344,335
	Fixed assets, net		102,532			374,748			156,503			15,951			649,734
	Total assets		205,968			602,990			201,785			190,733			1,201,476
	Total current liabilities		44,733			76,896			15,134			15,128			151,891
	Total debt		-			95,446			64,236			-			159,682
	ATN International, Inc.
	Selected Segment Financial Information
	(In Thousands)
	For the three months ended June 30, 2016 is as follows:
		U.S.  Telecom			International Telecom			Renewable Energy			Corporate and Other *			Total
	Statement of Operations Data:
	Revenue
	Wireless	$	37,655		$	19,433		$	-		$	-		$	57,088
	Wireline		5,811			28,165			-			-			33,976
	Renewable Energy		-			-			5,562			-			5,562
	Equipment and Other		480			2,765			120			-			3,365
	Total Revenue	$	43,946		$	50,363		$	5,682		$	-		$	99,991
	Operating Income (Loss)	$	4,797		$	9,259		$	(3,618	)	$	(8,526	)	$	1,912
	Non-controlling interest ( net income or (loss) )	$	(1,266	)	$	478		$	(412	)	$	-		$	(1,200	)
	Non GAAP measure:
	Adjusted EBITDA	$	21,482		$	15,420		$	3,809		$	(6,368	)	$	34,343
	*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
	ATN International, Inc.
	Selected Segment Financial Information
	(In Thousands)
	For the six months ended June 30, 2017 is as follows:
		U.S.  Telecom			International Telecom			Renewable Energy			Corporate and Other *			Total
	Statement of Operations Data:
	Revenue
	Wireless	$	71,668		$	39,022		$	-		$	-		$	110,690
	Wireline		8,108			117,151			-			-			125,259
	Renewable Energy		-			-			9,791			-			9,791
	Equipment and Other		995			4,487			138			-			5,620
	Total Revenue	$	80,771		$	160,660		$	9,929		$	-		$	251,360
	Operating Income (Loss)	$	28,533		$	20,771		$	2,287		$	(17,955	)	$	33,636
	Non-controlling interest ( net income or (loss) )	$	(4,153	)	$	(5,033	)	$	(565	)	$	-		$	(9,751	)
	Non GAAP measure:
	Adjusted EBITDA	$	42,561		$	46,901		$	5,571		$	(14,713	)	$	80,320
	Statement of Cash Flow Data:
	Capital expenditures	$	12,602		$	37,119		$	25,535		$	3,293		$	78,549
	ATN International, Inc.
	Selected Segment Financial Information
	(In Thousands)
	For the six months ended June 30, 2016 is as follows:
		U.S.  Telecom			International Telecom			Renewable Energy			Corporate and Other *			Total
	Statement of Operations Data:
	Revenue
	Wireless	$	77,119		$	38,846		$	-		$	-		$	115,965
	Wireline		11,857			44,564			-			-			56,421
	Renewable Energy		-			-			11,151			-			11,151
	Equipment and Other		1,169			4,850			120			-			6,139
	Total Revenue	$	90,145		$	88,260		$	11,271		$	-		$	189,676
	Operating Income (Loss)	$	21,579		$	16,959		$	(3,555	)	$	(17,179	)	$	17,804
	Non-controlling interest ( net income or (loss) )	$	(2,853	)	$	(1,875	)	$	(1,149	)	$	-		$	(5,877	)
	Non GAAP measure:
	Adjusted EBITDA	$	43,884		$	29,497		$	8,051		$	(12,988	)	$	68,444
	Statement of Cash Flow Data:
	Capital expenditures	$	16,447		$	22,283		$	242		$	3,755		$	42,727
	*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
	ATN International, Inc.
	Selected Segment Financial Information
	(In Thousands)
	At December 31, 2016 is as follows:
		U.S.  Telecom			International Telecom			Renewable Energy			Corporate and Other *			Total
	Balance Sheet Data:
	Cash, cash equivalents and investments	$	22,235		$	97,681		$	27,378		$	131,664		$	278,958
	Total current assets		50,983			143,201			37,440			135,745			367,369
	Fixed assets, net		129,274			372,741			130,268			15,429			647,712
	Total assets		240,006			597,454			190,253			170,505			1,198,218
	Total current liabilities		23,162			95,502			12,603			18,838			150,105
	Total debt		-			91,316			65,507			-			156,823
	*  Corporate and Other refer to corporate overhead expenses and consolidating adjustments
	ATN International, Inc.
	Selected Segment Operational Data
		Quarter ended
		December 31,			March 31,			June 30,
		2016 *			2017			2017
	U.S. Telecom Operational Data:
	Wireless - Total Domestic Base Stations		1,006			1,019			1,041
	International Telecom Operational Data:
	Wireline - Voice / Access lines		179,700			176,900			174,600
	Wireline - Data Subscribers		97,400			99,900			101,700
	Wireline - Video Subscribers		54,600			53,800			52,900
	Wireless - Subscribers		304,700			302,900			302,900
	* Adjusted subscriber counts for the sale of St Maarten and transfer of ownership of Aruba business

 

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

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