ATNI Q3 2026 earnings call transcript, November 5, 2026

Thank you very much.

for the remaining of the year, we are updating our full year outlook and our anticipated adjusted EBITDA will be at the high end of a modestly above our previously communicated guidance range. Our strong financial position provides flexibility for future investment while we remain focused on long-term shareholder value. Turning now to the international segment on slide 4. Mobility subscriber trends reflect a favorable shift in customer mix, with postpaid subscriber increasing 4%. A recent billing system upgrade was the primary driver of the prepaid subscriber loss in the quarter. Since last year, we have expanded our high-speed broadband footprint, growing homes back by 4%. While our international operations remain... ...predominantly consumer-focused, we continue to see opportunity to broaden our business services reach. Now, let me provide you a brief update on each of our international markets. In Guyana, we continue to expand the fiber footprint, increasing homes back, and growing fixed customer revenue. We believe the country's economic expansion will continue to create new demand for connectivity We believe the country's economic expansion will continue to create new and more opportunities for business offerings. We have also invested in our mobile network, enhancing our service offering, and growing both our postpaid subscriber base and consumer mobility webinars. In conjunction with the investment, we have decommissioned the 2G network and are on track to decommission the copper network. Lastly, we recently announced a partnership

with IDB Lab to expand access to digital financial services for a Guyana unbanked and underbanked population. In the Cayman Islands, our business continues to build momentum with growth across both residential broadband and business services. As we invest in growing our customer base, the team's deep roots in the community and focus on execution continue to strengthen our competitive position and support growth. We recently were awarded a managed services contract in connection with the planned development of a purpose-built STEM facility financed by DART. In the U.S. Virgin Islands, the market dynamics are complex and challenging, driven primarily by an unstable power grid. We remain focused on reinforcing our leading position in broad band while improving customer experience. In Bermuda, SOLID execution continues to support our market leading position in mobility and broadband services. Now moving to slide 5. Across the U.S. segment, high-speed broadband home paths increased 4% year-over-year, while high-speed broadband subscriber increased 7%. We continue to see opportunities. to modernize our network, expand our reach to a government-funded broadband initiative, and migrate customers from legacy networks to higher performance platforms. In Alaska, strong fixed business and carrier services performance continues this quarter. Looking forward, we have an opportunity to build on our BEAT Awards by expanding broadband access and continuing the modernization of

our network. We also see meaningful opportunities in the residential market as we expand our reach and improve execution with Cortland MADOC in place as of September 1st as the new CEO. Across our Southwest markets, we remain focused on expanding our fiber footprint and increasing penetration as we leverage government-supported projects. Our food has been, and will continue to be, executing this project effectively and converting network investment into sustainable customer and revenue growth. The progress across our markets reflects our continued focus on execution, operation improvement, and discipline investment. While realizing the potential of these opportunities will take time, we believe the action that we're taking today are strengthening the business and positioning it for sustainable growth and long-term value creation. In closing, I would like to thank our teams across all markets for their commitment and hard work. Their efforts continue to drive meaningful progress across the business and were instrumental in delivering the score's results. With that, I'll turn it over to Carlos to walk us through our financial results.

Let me turn now to the segment performance. Starting on slide 7, in our international segment, we continued to deliver year-over-year revenue growth and margin expansion. Total revenue income. Increased 2% to 97 million, while adjusted EBITDA grew 9% to 36 million, and adjusted EBITDA margin increased by 240 basis points to 37.4%. Growth in ancillary communication services, together with certain non-recurrent items in carrier services and mobility, helped to offset the previously disclosed loss of government support in the U.S. Virgin Islands. We have one remaining quarter of unfavorable year-over-year comparisons related to the cycle. Revenue growth combined with favorable operating expense timing contributed to the expansion in adjusted EBITDA margin. Now turning to slide 8, in our domestic segment, revenue was $86 million, down 2% or nearly $2 million year-over-year. Growth in carrier services growth in the U.S. Virgin Islands. and fixed business revenue partly helped offset the revenue decline anticipated and announced following the U.S. Tower portfolio sale, as well as lower construction activity. Communication service revenues would have increased by 1% when excluding the $1.4 million in foregone Tower rent revenue resulting from the transaction. Adjusted EBITDA for the quarter was approximately $19 million. and the adjusted EBITDA margin was 21.7% and consistent with the second quarter post sale level. Adjusted EBITDA would have increased 2% and the adjusted EBITDA margin would have expanded 60 basis points excluding the $1.5 million increase in operating costs and the reduction in Tower rent revenue resulting from the US Tower portfolio sale. We expect a similar impact in the fourth quarter which is built into our outlook.

As discussed last quarter, we continue to expect subsequent closings to occur over the next seven months with the potential for up to an additional $30 million in proceeds from remaining sites deferred at the initial closing. With that, let's turn to slide 9 to go over leverage and liquidity. We ended the quarter with $351 million in cash, cash equivalents and receipts. Restricted cash representing an increase of $234 million from year end. Total debt declined to $538 million and our net leverage ratio improved to 0.94 times from 2.36 times at year end 2025. The improvement was driven primarily by the debt reduction enabled by proceeds from the initial close of the tower sale earlier in the year. As a reminder, approximately 45% of our debt is currently insulated from interest rate fluctuations. In addition, roughly three quarters of our outstanding debt is ring fenced at the subsidiary level and is known recourse to the ATN parent company. For the first nine months of the year, net cash from operating activities was $77 million compared with $98 million in the prior year period. The decrease primarily reflects working capital timing. Turning to slide 10, capital expenditures for the first nine months of the year were $66 million, a $5 million increase versus the same period last year. The reimbursable CAPEX spend was $35 million versus $67 million last year, reflecting the variable timing of our government programs. As a reminder, our capital...

...expenditure plans are managed on a full-year basis, and while quarterly spending may fluctuate, we continue to expect capital expenditures for the full year to remain within our guided range. Now turning to slide 11, quarterly cash dividends of $0.29 per share paid on October 9 reflected the 5.5% increase approved by the Board in June. In July, the Board authorized an expansion of... the share repurchase program to $30 million and the full amount remained available as of September 30, 2026. Turning now to slide 12 for our outlook for 2026. We updated the full year 2026 adjusted to be the expectations to be at the high end of or modestly above the previously communicated range of 183 million to 193 million. We also expect capital expenditures net of reversible spending to remain in the range of $105 million to $115 million for the year. In closing, we delivered another quarter of solid execution. While we face heightened competition and some operational challenges during the quarter, we delivered stable revenue and adjusted to be that results. Combined with the strength of our balance sheet, we remain well positioned to

please press star 11 again. Please stand by.

Our first question comes from Greg Burns from Sidoti. Please go ahead.

Thank you again for joining us today and for your continued interest in ATN. We look forward to updating you on our continued progress during our fourth quarter earning call in early March. Thank you.

Thank you for your participation.