ATN International, Inc. (NASDAQ:ATNI) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 09:30 am ET

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ATN International, Inc. (NASDAQ:ATNI) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the ATN International First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer-session and instructions will follow at that time. (Operator Instructions). As a reminder, today's conference is being recorded.

I would like to introduce your host for today's conference, Mr. Justin Benincasa, Chief Financial Officer. Sir, please go ahead.

Executive
Justin Benincasa

Great. Thank you, Michelle. Good morning, everyone, and thank you for joining us on our call to review our first quarter 2018 results. With me here is Michael Prior, ATN's President and Chief Executive Officer. During the call, I'll cover the relevant financial information and Michael will be providing an update on the business and outlook.

Before I turn the call over to Michael, I'd like to point out that this call and our press release contain forward-looking statements concerning our current expectations, objectives and underlying assumptions regarding our future operating results and are subject to risks and uncertainties that could cause actual results to differ materially from those described.

Also, in an effort to provide useful information to investors, our comments today include non-GAAP financial measures. For details on these measures and reconciliations to comparable GAAP measures and for information regarding the factors that may affect our future operating results, please refer to our earnings release on our Web site at atni.com or the 8-K filing provided to the SEC.

And I'll turn the call over to Michael.

Executive
Michael Prior

Thanks, Justin. All right, well, overall results for the quarter were as expected, down substantially from the comparable period last year. The two main factors of course were the loss of revenue in the Virgin Islands due to the destruction of our wireline network and it should be said a lot of the other infrastructure in the territory during the two massive September 2017 hurricanes and the much discussed reduction in U.S. wireless wholesale revenue resulting from contract changes that went into effect in 2017.

Both of those factors will continue to negatively impact year-on-year comparisons throughout 2018, though we expect to see sequential quarterly improvement in the international telecom segment throughout the year, as our wireline network build in the VI nears completion and customers reconnect it.

Also, on the good news side of the fence, I was happy to see performance improvements in several areas, notably including non-hurricane affected markets in International Telecom and in Indian solar. I'll talk more about those in a few minutes.

From a capital allocation standpoint looking forward a bit, we are feeling fairly positive about the ability to grow free cash flow from the mix of operations we have today and at the same time we are actively looking at opportunities to invest our balance sheet capacity and future growth.

So with that, I'll turn to more of the segment details starting with International Telecom. So there I'll try to keep it shorter than last time but so much attention is on the post-hurricane