ATN International, Inc. Q1 FY2025 earnings call

• Teams across ATN have shown continued commitment and execution despite industry - wide shifts and macroeconomic uncertainty. - In the face of macroeconomic uncertainty, the company remains focused on operational performance, disciplined investment, and long - term strategy. Q1 results reflect this discipline, with top - line revenue down due to the wind - down of COVID - era government subsidy programs in U.S. markets. - Cash from operations increased 55% to $35.9 million. - The International segment saw improved operating efficiency, with adjusted EBITDA up 11% year - on - year, and demand for high - speed broadband and business services remains steady. - Domestically, the company is focused on its strategic shift to grow its fiber and fiber - fed business and carrier solutions, and is advancing approximately $370 million in government - funded broadband infrastructure projects, with over half expected to be completed in 2025. - The company made strong progress on cash generation in Q1, reflecting disciplined cost controls and focused capital allocation.

The International segment saw Q1 revenues increase to $94.5 million from $93.1 million in the prior-year first quarter, driven partly by carrier services growth. Adjusted EBITDA for the International segment climbed to $32.4 million for the quarter, an 11% year - on - year rise. The Domestic segment had first - quarter revenues of $84.8 million, a 9.5% year - over - year decline. The lower revenue led to a decrease in adjusted EBITDA to $17.5 million, a 15.4% year - on - year drop.

• Reaffirms 2025 outlook: expects revenue for the year to be in line with 2024 excluding construction revenue. - Adjusted EBITDA is essentially flat with the previous year. - Net capital expenditures are between $90 million and $100 million. - Net debt ratio is expected to remain flat to year - end 2024 with a slight potential improvement by year - end. - The second half of 2025 is expected to contribute a larger share of full - year results.

• Monitors recent developments around trade and tariffs. Any sustained increase in tariffs on network infrastructure, including fiber - related components and electronics, could introduce cost pressure over time.

Q: Rick Prentiss of Raymond James & Associates asked about supply chains, fiber sourcing, and trade tariffs.

A: Brad Martin responded that much of the fiber construction materials are sourced in the U.S., and electronics from various regions are being closely watched. The largest consumer markets are international and not immediately impacted by some tariffs.

Q: Greg Burns asked about government grant funding and the BEAD program.

A: Brad Martin discussed the $370 million in government funding, with about half of the projects expected to be completed in 2025, and monetization being larger in out - years '26 and '27. Regarding the BEAD program, there are delays with states, but the basic financial and technical requirements for the programs remain unchanged.

Q: Rick Prentiss followed up on BEAD funding and NTIA confirmation.

A: Brad Martin mentioned that the BEAD program is delayed, with states not yet granting funds, which impacts the timing of monetization of BEAD builds.

Q: Rick Prentiss asked about balance sheet management.

A: Carlos Doglioli said the company is working on improving margins to delever, lowering capital expenditures to improve leverage and capital allocation optionality.