EX-99.2 3 a13-23558_1ex99d2.htm EX-99.2

Exhibit 99.2

 

The financial information below shows the unaudited results of operations of the Company for each of the quarters in the fiscal year ending December 31, 2012, as well as the quarters ended March 31, 2013 and June 30, 2013, that give effect to the reclassification of the  Company’s domestic retail wireless business operated under the “Alltel” name as a discontinued operation.   This business was sold to AT&T Mobility LLC on September 20, 2013.

 

ATLANTIC TELE-NETWORK, INC.

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, Except per Share Data)

 

 

 

Three Months Ended

 

 

 

March 31,
2012

 

June 30,
2012

 

September 30,
2012

 

December 31,
2012

 

March 31,
2013

 

June 30,
2013

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. wireless

 

$

23,330

 

$

25,599

 

$

29,042

 

$

24,847

 

$

21,212

 

$

26,589

 

International wireless

 

18,900

 

20,271

 

21,014

 

21,277

 

21,430

 

21,837

 

Wireline

 

21,731

 

21,074

 

21,289

 

21,430

 

20,564

 

20,877

 

Equipment and other

 

1,785

 

1,882

 

1,967

 

2,358

 

1,626

 

2,323

 

Total revenue

 

65,746

 

68,826

 

73,312

 

69,912

 

64,832

 

71,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Termination and access fees

 

13,852

 

14,116

 

14,435

 

14,410

 

13,055

 

13,601

 

Engineering and operations

 

10,176

 

9,755

 

9,903

 

10,184

 

9,658

 

9,182

 

Sales, marketing and customer service

 

4,778

 

5,800

 

4,299

 

4,140

 

4,489

 

4,787

 

Equipment expense

 

2,746

 

3,274

 

3,129

 

4,232

 

2,667

 

2,834

 

General and administrative

 

12,585

 

12,254

 

12,952

 

11,798

 

11,909

 

13,120

 

Transaction-related charges

 

5

 

 

2

 

 

64

 

 

Depreciation and amortization

 

13,189

 

12,695

 

12,421

 

12,283

 

11,988

 

12,195

 

Impairment of intangible assets

 

 

 

 

3,350

 

 

 

Gain on disposition of long-lived assets

 

 

 

 

(11,605

)

(1,076

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

57,331

 

57,894

 

57,141

 

48,792

 

52,754

 

55,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

8,415

 

10,932

 

16,171

 

21,120

 

12,078

 

15,907

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(3,871

)

(3,899

)

(2,985

)

(2,954

)

(2,263

)

(2,722

)

Other income (expense)

 

44

 

(536

)

49

 

2,309

 

14

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(3,827

)

(4,435

)

(2,936

)

(645

)

(2,249

)

(2,709

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

4,588

 

6,497

 

13,235

 

20,475

 

9,829

 

13,198

 

Income taxes

 

2,214

 

2,673

 

4,145

 

11,799

 

3,945

 

4,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

2,374

 

3,824

 

9,090

 

8,676

 

5,884

 

8,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations, net of tax

 

6,563

 

7,943

 

8,922

 

5,775

 

4,034

 

3,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

8,937

 

11,767

 

18,012

 

14,451

 

9,918

 

11,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to non-controlling interests, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

522

 

(855

)

(1,681

)

(1,130

)

(1,055

)

(1,934

)

Discontinued operations

 

(138

)

(382

)

(365

)

(205

)

(87

)

(630

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to non-controlling interests, net

 

384

 

(1,237

)

(2,046

)

(1,335

)

(1,142

)

(2,564

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Atlantic Tele-Network, Inc. stockholders

 

$

9,321

 

$

10,530

 

$

15,966

 

$

13,116

 

$

8,776

 

$

8,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per weighted average share attributable to Atlantic Tele-Network, Inc. stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.19

 

$

0.19

 

$

0.48

 

$

0.48

 

$

0.31

 

$

0.41

 

Income from discontinued operations

 

0.42

 

0.49

 

0.55

 

0.36

 

0.25

 

0.16

 

Net income

 

$

0.61

 

$

0.68

 

$

1.03

 

$

0.84

 

$

0.56

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per weighted average share attributable to Atlantic Tele-Network, Inc. stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.19

 

$

0.19

 

$

0.47

 

$

0.48

 

$

0.31

 

$

0.40

 

Income from discontinued operations

 

0.41

 

0.48

 

0.55

 

0.36

 

0.25

 

0.16

 

Net income

 

$

0.60

 

$

0.67

 

$

1.02

 

$

0.84

 

$

0.56

 

$

0.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

15,456

 

15,535

 

15,560

 

15,572

 

15,588

 

15,706

 

Diluted

 

15,554

 

15,609

 

15,651

 

15,663

 

15,695

 

15,821

 

 

Use of Non-GAAP Financial Measures

 

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), the information presented herein also contains non-GAAP financial measures. Specifically, ATN has presented an Adjusted EBITDA measure. Adjusted EBITDA is defined as net income attributable to ATN stockholders before income from discontinued operations, gain on disposal of discontinued operations, interest, taxes, depreciation and amortization, transaction-related charges, impairment of intangible assets, gain on disposition of long-lived assets, other income or expense, and net income attributable to non-controlling interests. The Company believes that the inclusion of this non-GAAP financial measure helps investors to gain a meaningful understanding of the Company’s core operating results and enhance comparing such performance with prior periods. ATN’s management uses this non-GAAP measure, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods. The non-GAAP financial measure included herein is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Reconciliations of the non-GAAP financial measure used herein to the most directly comparable GAAP financial measure is set forth in the next page.

 



 

ATLANTIC TELE-NETWORK, INC.

Reconcilation of Operating Income to Adjusted EBITDA (Non-GAAP Measure)

(in Thousands, Except per Share Data)

 

 

 

Three Months Ended

 

 

 

March 31,
2012

 

June 30,
2012

 

September 30,
2012

 

December 31,
2012

 

March 31,
2013

 

June 30,
2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

$

8,415

 

$

10,932

 

$

16,171

 

$

21,120

 

$

12,078

 

$

15,907

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction-related charges

 

5

 

 

2

 

 

64

 

 

Depreciation and amortization

 

13,189

 

12,695

 

12,421

 

12,283

 

11,988

 

12,195

 

Impairment of intangible assets

 

 

 

 

3,350

 

 

 

Gain on disposition of long-lived assets

 

 

 

 

(11,605

)

(1,076

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

21,609

 

$

23,627

 

$

28,594

 

$

25,148

 

$

23,054

 

$

28,102