NASDAQ$ATNI

ATN International Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

ATN's second quarter results benefited from past investments. Operating income and EBITDA performance remained steady across International Telecom and US Telecom segments.

ATN International reported a 1% increase in consolidated revenues, reaching $109.1 million. The company experienced a significant rise in operating income and EBITDA, driven by strong performance in the International Telecom segment and growth in US Telecom revenues.

  • Consolidated revenues increased by 1% year-over-year to $109.1 million.
  • Operating income rose by $4.2 million to $7.0 million.
  • EBITDA increased by 19% to $29.0 million.
  • Net income attributable to ATN's stockholders was $4.7 million, or $0.30 per diluted share.

Headline financials

Total Revenue

$109M

Previous: $108M+1.3%
EPS (adj)

$0.30

Previous: -$0.05+700.0%
Capital Expenditures

-$32M

Previous: -$35.4M+9.7%
Free Cash Flow

-$23.6M

Previous: -$33.4M+29.3%
Net Income

$8.36M

Previous: $2.03M+312.6%
Operating Income

$7.02M

Previous: $2.75M+155.0%
Gross Profit

$63.3M

Previous: $108M-41.3%
Cash & Equivalents

$125M

Previous: $146M-14.3%
Total Assets

$1.11B

Previous: $1.15B-3.1%
Stock-Based Comp

$1.56M

Previous: $2.03M-23.2%

Revenue & EPS history

ATN · Revenue · Quarterly

$109M

Q2 2020+1.3%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

ATN · $108M total across 2 segments · Q2 2020

  • International Telecom
    $80.1M+0.4%
  • US Telecom
    $28.2M+7.2%

Forward guidance

Looking ahead, the company is concerned about the economic impact that long delays in the return of tourism and travel could have on international markets and will adjust its course as needed. At the same time, the company believes that the pandemic will lead to changes in global business and social behaviors and accelerate a shift to heavy telecom and data reliant activity, which could provide attractive growth opportunities.

Tailwinds

  • CAFII federal revenue support contracts will provide relatively consistent revenues for the year.
  • Increased carrier service revenue as part of the FirstNet transaction.
  • Pandemic may accelerate a shift to heavy telecom and data reliant activity.
  • Conservative approach to balance sheet management should provide resources to manage through potential downturns.
  • Investments that position telecom services platforms for longer term growth.

Headwinds

  • The impact of lower mobile revenue and handset sales due to pandemic-related travel and stay-at-home restrictions.
  • Pandemic-related construction delays in FirstNet network buildout.
  • Economic impact that long delays in the return of tourism and travel could have on international markets.
  • The network build portion of the FirstNet agreement has continued during the pandemic, but the overall timing of the build schedule has been delayed
  • Customers' operations and revenue generation in Renewable Energy segment were suspended temporarily.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.3%

Avg return

Earnings day

-3.6%

Avg return

5 days after

-1.1%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+20.8%

Q2 2018

Best reaction

-31.7%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-0.9%
Q4 2025-16.7%-18.0%-8.5%
Q3 2025-3.1%-6.7%+37.6%
Q1 2025-15.4%-6.3%-19.7%
Q4 2024+6.8%+20.7%+9.6%
Q3 2024-27.7%-35.0%-36.2%
Q2 2024+14.6%+18.9%+17.9%
Q1 2024-31.7%-30.0%-16.7%
Q4 2023-22.0%-1.9%-15.9%
Q3 2023-9.9%-12.9%-7.7%
Q2 2023-1.0%-1.1%-1.6%
Q1 2023-2.9%-5.8%-1.4%
Q4 2022-13.4%-11.5%-17.9%
Q3 2022+4.2%+11.7%+21.6%
Q2 2022-5.1%+0.4%+5.7%
Q1 2022+1.1%-1.8%+10.2%
Q4 2021+1.0%-2.9%+14.6%
Q3 2021-7.1%-5.0%-6.8%
Q2 2021-1.0%-2.8%+3.3%
Q1 2021-1.0%-4.2%-0.8%
Q4 2020-1.7%+6.1%+2.9%
Q3 2020+2.9%+5.7%+14.0%
Q2 2020+4.1%-1.6%+3.8%
Q1 2020-11.8%-20.4%-15.7%
Q4 2019+1.2%-2.2%-6.5%
Q3 2019+10.4%+10.0%-3.0%
Q2 2019+0.4%-1.4%-9.1%
Q1 2019+3.8%+0.7%+1.4%
Q4 2018-23.1%-26.8%-28.6%
Q3 2018+10.6%+10.8%+13.8%
Q2 2018+20.8%+17.5%+36.3%
Q1 2018-7.6%-20.0%-20.7%
Q4 2017+7.3%+12.3%+7.2%
Q3 2017+2.1%-1.4%+12.7%
Q2 2017-9.1%-10.8%-9.1%
Q1 2017-0.7%-6.1%-11.0%
Q4 2016-6.2%-10.0%-11.4%
Q3 2016+1.8%+2.6%+12.5%
Q2 2016-7.6%-9.3%-18.6%
Q1 2016-0.5%
Q4 2015-6.3%
Q3 2015-7.6%
Q2 2015-0.6%
Q1 2015-3.3%
Q4 2014+4.3%
Q3 2014+2.0%
Q2 2014+8.9%
Q1 2014-4.1%
Q4 2013-0.6%
Q3 2013-2.5%
Q2 2013-3.3%
Q1 2013+1.9%
Q4 2012+8.1%
Q3 2012+6.4%
Q2 2012+12.9%
Q1 2011-5.6%
Q1 2012+18.3%
Q4 2011+1.1%
Q4 2009+1.1%
Q3 2011-4.6%
Q3 2010-4.6%
Q4 2010+6.7%
Q2 2010+6.7%
Q2 2011+6.7%
Q1 2010+2.7%

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