Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

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Equity Bottom-Up

<ul>
<li>ATNI is trading at approximately 35 percent discount to tangible book value after reporting first quarter results with negative free cash flow and reducing adjusted EBITDA guidance by 4.4 percent.</li>
<li>ATNI experienced delays in securing government contracts in the quarter and slower process in growing commercial broadband accounts.</li>
<li>ATNI is forecasting adjusted EBITDA of $190 million to $200 million leading to calculation of positive free cash flow. </li>
</ul>


ATNI is trading at approximately 35 percent discount to tangible book value after reporting first quarter results with negative free cash flow and reducing adjusted EBITDA guidance by 4.4 percent.
ATNI experienced delays in securing government contracts in the quarter and slower process in growing commercial broadband accounts.
ATNI is forecasting adjusted EBITDA of $190 million to $200 million leading to calculation of positive free cash flow. 


<ul>
<li>ATNI reiterated its entry into the era of generating free cash flow after spending the last several years building out its fiber network</li>
<li>ATNI reported fourth quarter results that showed services revenue rising sequentially. An increase in subscribers is the source for the success</li>
<li>To grow revenue and generate free cash flow, ATNI has expanded its broadband network to approximately 769 thousand homes passed with 367 thousand of these homes having high-speed data</li>
</ul>


ATNI reiterated its entry into the era of generating free cash flow after spending the last several years building out its fiber network
ATNI reported fourth quarter results that showed services revenue rising sequentially. An increase in subscribers is the source for the success
To grow revenue and generate free cash flow, ATNI has expanded its broadband network to approximately 769 thousand homes passed with 367 thousand of these homes having high-speed data


<ul>
<li>ATNI is getting set to undergo management change right when the Company was to begin harvesting cash flow from several years of capital expenditures</li>
<li>In 2024, CEO would move to Executive Chairman and the CFO plans to retire. In their place, ATNI has named Brad Martin as CEO and Carlos Doglioli as CFO</li>
<li>Current COO has overseen the investment in Alaska and other markets ATNI has been placing fiber lines in an attempt to thwart competition before there was a severe pricing pressure</li>
</ul>


ATNI is getting set to undergo management change right when the Company was to begin harvesting cash flow from several years of capital expenditures
In 2024, CEO would move to Executive Chairman and the CFO plans to retire. In their place, ATNI has named Brad Martin as CEO and Carlos Doglioli as CFO
Current COO has overseen the investment in Alaska and other markets ATNI has been placing fiber lines in an attempt to thwart competition before there was a severe pricing pressure


<ul>
<li>ATNI is benefiting from its capital expenditure investments through an increase in revenue and adjusted EBITDA, but it has come with the price of higher interest expense</li>
<li>ATNI reported third quarter results showing subscriber growth in each of its markets, but that was not enough to mend the cost of capital that has increased this year</li>
<li>ATNI is now projecting 2024 capital expenditures to decline materially in what could result in improving ATNI’s debt balance over the next four quarters</li>
</ul>


ATNI is benefiting from its capital expenditure investments through an increase in revenue and adjusted EBITDA, but it has come with the price of higher interest expense
ATNI reported third quarter results showing subscriber growth in each of its markets, but that was not enough to mend the cost of capital that has increased this year
ATNI is now projecting 2024 capital expenditures to decline materially in what could result in improving ATNI’s debt balance over the next four quarters


<ul type="disc"><li>The third quarter marks the first time ATN International (ATNI) would be reporting quarterly results that include the purchase of Alaska Communications (“Alaska”). When ATNI reported second quarter results, the Company included guidance on what Alaska could contribute for the rest of the year. However, ATNI’s stock has continued to discount the contribution with the shares trading relatively flat since the beginning of the year.</li></ul> <ul type="disc"><li>Until the purchase of Alaska, ATNI’s revenue growth was dependent on its FirstNet contract that included no-margin construction revenue. Free cash flow has been minimal given the capital outlay required for the different projects ATNI has undertaken this year.</li></ul> <ul type="disc"><li>ATNI should begin to generate a return on its Alaska purchase immediately while it invests in revenue synergies for next year.</li></ul> <ul type="disc"><li>ATNI’s stock is trading near book value even though the business should begin to show an increase in free cash flow in the second half of 2021.</li></ul>

The third quarter marks the first time ATN International (ATNI) would be reporting quarterly results that include the purchase of Alaska Communications (“Alaska”). When ATNI reported second quarter results, the Company included guidance on what Alaska could contribute for the rest of the year. However, ATNI’s stock has continued to discount the contribution with the shares trading relatively flat since the beginning of the year. Until the purchase of Alaska, ATNI’s revenue growth was dependent on its FirstNet contract that included no-margin construction revenue. Free cash flow has been minimal given the capital outlay required for the different projects ATNI has undertaken this year. ATNI should begin to generate a return on its Alaska purchase immediately while it invests in revenue synergies for next year. ATNI’s stock is trading near book value even though the business should begin to show an increase in free cash flow in the second half of 2021.

United States

ATN International, Inc. provides telecommunications services to rural, niche, and other under-served markets and geographies.  The Company, through subsidiaries, provides both wireless and wireline connectivity to residential and business customers. ATN International also provides a range of mobile wireless solutions, local exchange services and broadband internet services.

ATN International (ATNI US)

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ATNI: The Free Cash Flow Story Begins

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ATNI: Changing from the Top

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ATNI: Turning Away from Debt

ATNI Company has continued to grow the number of subscribers on its fiber and wireless networks. However, debt has continued to increase due to...

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ATNI: A Catalyst of an Operator

Q3 marks the first time ATNI reports results after purchasing Alaska Communications. We are anticipating broader investor attention to the stock...

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