Atlantic Tele-Network, Inc. (NASDAQ: ATNI), today reported results for the second quarter ended June 30, 2012.
Second Quarter/First Half 2012 Financial Results
"Profitability significantly increased in the second quarter primarily as a result of the anticipated expense reductions and the operating efficiencies we achieved in our U.S. retail wireless business. Additionally, our results for the period benefitted from higher international wireless revenues, which partially offset lower U.S. retail wireless revenues that resulted from the net subscriber attrition we experienced during the transition period last year,” said Michael T. Prior, Chief Executive Officer. “In fact, this marks the first quarter since the Alltel acquisition was completed in April 2010 that we experienced an overall net gain in subscribers, and while there is still work to be done to attract more postpaid customers, we are pleased to have reached this milestone. The positive trends of our U.S. prepaid subscribers and the initial response to our Walmart retail launch is encouraging. In the third quarter, however, we will experience a high percentage of contract expirations, which combined with seasonality, are likely to result in somewhat lower subscriber levels for the period.
"Our international wireless business continued to perform well in the second quarter with operating results benefitting from higher revenues and further expense synergies following our May 2011 merger in Bermuda. U.S. wholesale revenues were stable year-on-year and increased 9% sequentially due to seasonal factors,” Mr. Prior said.Total revenues for the second quarter were $185.3 million, a 4% decrease from the $193.8 million reported for the second quarter of 2011, reflecting lower U.S. retail wireless revenues, partially offset by higher international wireless revenues and equipment sales. Adjusted EBITDA 1 for the 2012 second quarter was $49.7 million, 55% above the $32.0 million reported in the 2011 second quarter, led by the strong performance of our U.S. Wireless and Island Wireless segments, where adjusted EBITDA increased by $18.4 million and $2.8 million, respectively, partially offset by a decrease of $2.6 million in the International Integrated Telephony segment. Second quarter 2011 U.S. Wireless segment results were impacted by significant costs associated with the transition of the acquired Alltel wireless assets and other one-time items, totaling approximately $14.8 million. Total operating income for the second quarter of 2012 was $23.1 million, a 267% increase over the $6.3 million reported in last year's second quarter. Net income attributable to ATN's stockholders was $10.5 million, or $0.67 per diluted share, more than five times the $1.8 million, or $0.12 per diluted share, reported in last year’s second quarter. “First half 2012 results illustrate the solid earnings capability of our diversified portfolio of telecom service assets. We continue to deleverage while also maintaining a high level of investment in our networks. This strategy has provided us with an even stronger balance sheet and offers us the flexibility to rapidly increase internal and external investments as the circumstances and opportunities arise,” Mr. Prior said.
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