Atlantic Tele-Network, Inc. (NASDAQ: ATNI), today reported results for the third quarter ended September 30, 2012.
Third Quarter/Nine Months 2012 Financial Results
“In addition to benefitting from seasonal factors, this year’s strong third quarter performance reflected our ability to achieve operating efficiencies and expense reductions in our U.S. retail wireless business,” said Michael T. Prior, Chief Executive Officer. “Our team has done a good job of managing expenses without impacting service levels. We posted our second consecutive quarter of net subscriber growth in what is, for the industry, a seasonally weak quarter for net subscriber additions. On the other hand, positive subscriber metrics continued to be driven by increases in the prepaid subscriber base as the currently high number of contract expirations contributed to another decline in postpaid subscriber levels and higher churn. Gaining additional traction with postpaid subscribers remains a key priority.
“Our international wireless business had another solid quarter thanks to subscriber growth in multiple markets and additional operating efficiencies. Wireline revenues were relatively stable for the quarter and we continue to make significant progress on our fiber network builds in the northeast U.S., which should allow for future revenue growth in this area,” Mr. Prior added.Total revenues for the third quarter were $188.8 million, a 3% decrease from the $194.3 million reported for the third quarter of 2011, but up 1.9% sequentially. The year-over-year decline resulted from lower U.S. retail and wholesale wireless revenues, which were partially offset by higher international wireless revenues and equipment sales. The sequential increase reflected seasonally higher U.S. wholesale wireless revenue and the growing international wireless revenue that together more than compensated for lower U.S. retail wireless revenues. Adjusted EBITDA 1 for the 2012 third quarter was $55.7 million, 7% above the $52.1 million reported in the 2011 third quarter, led by the strong performance of our U.S. Wireless and Island Wireless segments, where adjusted EBITDA increased by $3.3 million and $2.1 million, respectively. Operating income for the third quarter of 2012 was $29.6 million, a 7% increase over the $27.6 million reported in last year's third quarter. Net income attributable to ATN's stockholders was $16.0 million, or $1.02 per diluted share, a 41% increase over the $11.3 million, or $0.73 per diluted share, reported in last year’s third quarter. Total revenues for the first nine months of 2012 were $557.0 million compared to $576.3 in last year’s first nine months, a decrease of 3%. Adjusted EBITDA was $150.5 million, up 26% year-over-year; operating income increased 60% to $70.9 million; and net income attributable to ATN’s stockholders was $35.8 million, or $2.30 per diluted share, more than double the $17.6 million or $1.14 per diluted share reported for last year’s first nine months.