Atlantic Tele-Network Reports 2006 Results

    Full Year 2006 Highlights

    --  Revenue increases 52% to $155.4 million

    --  Operating Income increases 41% to $52.3 million

    --  Earnings increase 71% to $23.2 million

    --  Earnings Per Share increase 56% to $1.70

    --  Strong contributions to year-over-year results from acquired

    SALEM, MASS., March 1 /CNW/ - Atlantic Tele-Network, Inc. (NASDAQ:   ATNI)
today reported earnings for the quarter and year ended December 31, 2006. For
the year ended December 31, 2006, revenue was $155.4 million, an increase of
$53.1 million or 52% as compared to revenue of $102.3 million for the year
ended December 31, 2005. For the year ended December 31, 2006, earnings were
$23.2 million as compared to $13.6 million for the same period in 2005, an
increase of $9.6 million or 71%. On a per share basis, earnings increased by
56% to $1.70 per share from $1.09 per share for the year ended December 31,

    Revenue for the quarter was $42.0 million, an increase of $10.6 million
or 34% as compared to revenue of $31.4 million for the quarter ended December
31, 2005. Earnings were $6.6 million as compared to $2.9 million for the
quarter ended December 31, 2005, an increase of $3.7 million or 128%. On a per
share basis, earnings increased by 87% to $0.43 per share from $0.23 per share
for the quarter ended December 31, 2005. Excluding the impact of a $2.1
million reserve taken in the fourth quarter of 2005, earnings for the three
months and year ended December 31, 2006, increased $1.6 million and $7.5
million, respectively, or 32% and 48%, respectively.

    Per share data for the three months and year ended December 31, 2006 were
affected by the Company's sale in the third quarter of 2.6 million shares of
the Company's common stock at $19.00 per share in an underwritten public
offering, from which the Company received $46.3 million in net proceeds.

    Share and per share amounts for all periods also reflect the effects of
the 5-for-2 split of the Company's common stock, which took place on March 31,

    "Our main objective for the year was to develop new sources of revenue
and growth without negatively impacting earnings. Thus far, we have exceeded
our goals. This announcement of our full year results for 2006 concludes a
very satisfying year" said Michael T. Prior, Chief Executive Officer of
Atlantic Tele-Network, Inc. "Our recently added rural wireless business
(Commnet) and New England telephone, data and service provider (Sovernet) both
had a strong year. In particular, the team at Commnet completed an ambitious
expansion of our rural wireless network in the Southwest, while continuing to
grow multiple sources of revenue from core voice roaming services for major US
carriers, to data roaming and roaming for international carriers. And, we are
pleased as well that most of our pre-existing businesses were able to deliver
very respectable results for the year. In Guyana, GT&T managed to grow
revenues, operating income and profits despite an increase in cellular
competition. In 2006, we extended coverage and increased the capacity of our
GSM network in Guyana and extended the wireline network to new areas as well.
Choice Communications managed to continue to grow revenue and reduce operating
losses, reaching our goal of self-funding all cash operating expenses by

    Mr. Prior added, "Looking ahead, we expect to invest significant
additional capital in our U.S. businesses which we believe have attractive
opportunities to expand the reach of their networks and add new services. Our
main challenge in 2007 appears to be greater competition in Guyana, where the
existing nationwide wireless competitor was acquired in late 2006 by a large,
aggressive, regional operator. The increased competition is likely to put
pressure on our wireless operating margins and market share in Guyana.
Overall, we expect to grow consolidated earnings in 2007, but do not think the
organic growth will be as strong as in 2006."

    Fourth Quarter 2006 Operating Highlights

    As was previously announced, the Company completed the acquisitions of
Sovernet, Inc., a Vermont telephone and data services provider, in February
2006 and Commnet Wireless, LLC, a U.S. rural wireless business, in September
2005. The Company's results reflect Sovernet only since the date of
acquisition and consequently Sovernet is not reflected in the Company's
results for the three months or twelve months ended December 31, 2005. The
Company's results for the year ended December 31, 2005 reflect Commnet only
from the date of its acquisition in September 2005.

    The Company generated the following operating results for the quarter
ended December 31, 2006 (unless otherwise indicated, all comparative
information is compared against the quarter ended December 31, 2005):

    Wireless Revenue Wireless revenue increased by $5.9 million, or 50%, to
$17.7 million from $11.8 million. This increase was attributable to the
continued expansion of our rural wireless network, along with growth in
minutes of use and increases in data and international roaming revenue. Our
Commnet subsidiary ended the quarter with a total of 287 base stations,
compared to 233 on December 31, 2005. In addition, the increase in wireless
revenue also reflects growth of our subscriber base in Guyana. Our wireless
customer base in Guyana increased from 228,000 subscribers to 269,000
subscribers, of which 207,000 use GSM service as compared to 102,000 GSM
subscribers a year ago and 175,000 at the end of September 2006.

    Local Telephone and Data Revenue Local telephone and data revenue
increased $3.8 million, or 51%, to $11.2 million from $7.4 million. Of this
increase, $3.6 million was attributable to the addition of Sovernet. Excluding
that contribution, local telephone and data revenue generated by our Guyana
and Virgin Islands operations increased by $0.2 million, or 3%. Access lines
at GT&T increased from approximately 113,000 to 121,000, or 7%, as we
continued to extend the wireline infrastructure to additional communities. In
the Virgin Islands, our broadband wireless subscriber base grew by more than
146% over the year, contributing to the increase in revenues.

    International Long Distance Revenue and Other Revenue International long
distance revenue, all of which is generated by our GT&T subsidiary, was $12.2
million during 2006, an increase of $0.8 million, or 7%, from $11.4 million in
2005. Inbound minutes represented 86% of international traffic for the
quarter. Other revenue increased primarily as a result of a 16% increase in
television subscribers in our Virgin Islands operations.

    Operating Expenses Operating expenses increased by $8.1 million, or 40%,
from $20.1 million to $28.2 million for 2005 and 2006, respectively. Of the
$8.1 million increase, $3.0 million is attributable to the addition of
Sovernet. Excluding Sovernet, operating expenses increased $5.1 million. Of
the $5.1 million, $1.7 million is attributable to increased sales and
marketing efforts at GT&T to encourage our TDMA subscribers to convert to GSM
handsets and to re-position ourselves against our changing competition. A
further $1.8 million is related to increased engineering and operations costs
associated with expanding our networks and an increase in termination and
access fees from year over year traffic growth at both GT&T and Commnet. The
balance of the increase in operating expenses is predominantly a result of
increased depreciation and amortization expense and additional overhead costs
to support our growth.

    Operating Income Operating income increased by $2.5 million, or 22%, from
$11.3 million to $13.8 million. Of the $2.5 million increase, $0.6 million is
attributable to the addition of Sovernet. The balance primarily reflects the
growth in our rural wireless and Virgin Islands businesses.

    Bermuda Digital Communications Equity in the earnings from BDC, our
Bermuda affiliate, declined from $0.6 million for 2005 to $0.5 million for
2006. This decline was due to a decrease in revenue and increased marketing
and handset expenses to maintain our share of a maturing market. Wireless
subscribers were down slightly from December 31, 2005, although we maintained
our position as the largest of the three competitive cellular providers in

    Conference Call Information

    Atlantic Tele-Network will host a conference call tomorrow, March 2, 2007
at 10:00 a.m. Eastern time (ET) to discuss its fourth quarter results for
2006. The call will be hosted by Michael Prior, President and Chief Executive
Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers
are US/Canada: (800) 946-0713 and International: (719) 457-2642, access code
8472275. A replay of the call will be available from 1:00 p.m. (ET) March 2,
2007 until 11:59 p.m. (ET) on March 8, 2007. The replay dial-in numbers are
US/Canada: (888) 203-1112 and International: (719) 457-0820, access code

    About Atlantic Tele-Network

    Atlantic Tele-Network, Inc. (NASDAQ:  ATNI) is a telecommunications company
with corporate offices in Salem, Massachusetts and St. Thomas, U.S. Virgin
Islands. Its principal subsidiaries include: Guyana Telephone and Telegraph
Company, Limited, which is the national telephone service provider for all
local, long-distance and international service, as well as the largest
cellular service provider, in the Cooperative Republic of Guyana; Commnet
Wireless, LLC, which provides voice and data wireless roaming services for
U.S. and international carriers in rural areas throughout the United States;
Sovernet, Inc., which provides wireline voice and data services to businesses
and homes across Vermont; and Choice Communications, LLC, which provides
wireless television and wireless broadband services, as well as dial-up
internet services in the U.S. Virgin Islands. The Company also owns 44% of
Bermuda Digital Communications Ltd., which, under the Cellular One name, is
the largest provider of cellular voice and data services in Bermuda.

    Cautionary Language Concerning Forward-Looking Statements

    This news release contains forward-looking statements relating to, among
other matters, the future financial performance and results of operations of
the Company, including the relative contributions of Commnet and Sovernet;
demand for our services and industry trends; the pace of our network expansion
and improvement, including our realization of the benefits of these
investments; and management's plans and strategy for the future. These
forward-looking statements are based on estimates, projections, beliefs, and
assumptions and are not guarantees of future events or results. Actual future
events and results could differ materially from the events and results
indicated in these statements as a result of many factors, including, among
others, (1) significant political and regulatory risk facing our exclusive
license to provide local exchange and long distance telephone services in
Guyana; (2) any significant decline in the price or volume of international
long distance calls to Guyana; (3) increased competition affecting our
businesses; (4) the regulation of rates that GT&T may charge for local
wireline telephone service; (5) significant tax disputes between GT&T and the
Guyanese tax authorities; (6) a significant portion of our U.S. wireless
revenue is derived from a small number of customers; (7) our failure to
maintain favorable roaming arrangements; (8) economic, political and other
risks facing our foreign political operations; (9) regulatory changes
affecting our businesses; (10) rapid and significant technological changes in
the telecommunications industry; (11) our reliance on a limited number of key
suppliers and vendors for timely supply of equipment and services relating to
our network infrastructure; (12) loss of any key members of management; (13)
the adequacy and expansion capabilities of our network capacity and customer
service system to support our customer growth; (14) dependence of our wireless
and wireline revenues on the reliability and performance of our network
infrastructure; (15) the occurrence of severe weather and natural
catastrophes; (16) our economic interest in our Bermuda affiliate may be
reduced in 2008; and (17) our inability to realize the value that we believe
exists in businesses that we acquire. These and other additional factors that
may cause actual future events and results to differ materially from the
events and results indicated in the forward-looking statements above are set
forth more fully under Item 1A "Risk Factors" of the Company's Annual Report
on Form 10-K for the year ended December 31, 2005, which is on file with the
SEC. The Company undertakes no obligation to update these forward-looking
statements to reflect actual results, changes in assumptions or changes in
other factors that may affect such forward-looking statements.


                         ATLANTIC TELE-NETWORK, INC.
                Unaudited Condensed Consolidated Balance Sheet
                       As of December 31, 2005 and 2006
                                (in Thousands)

                                              December 31,   December 31,
                                                  2005           2006
                                             --------------- -------------
       Cash and Cash Equivalents                   $ 26,493      $ 60,543
       Other Current Assets                          22,179        30,596
                                             --------------- -------------

       Total Current Assets                          48,672        91,139

       Fixed Assets, net                            125,709       138,573
       Goodwill and Other Intangible Assets,
        net                                          40,277        59,733
       Other Assets                                  19,173        13,169
                                             --------------- -------------

    Total Assets                                   $233,831      $302,614
                                             --------------- -------------

    Liabilities and Stockholders' Equity
       Current Liabilities (excluding
        current portion of long term debt)         $ 33,962      $ 35,041

       Long Term Debt (including current
        portion)                                     55,750        50,000
       Other Liabilities                              6,469        12,846
                                             --------------- -------------

    Total Liabilities                                96,181        97,887

    Minority Interests                               21,940        25,539
                                             --------------- -------------

    Stockholders' Equity                            115,710       179,188
                                             --------------- -------------

       Total Liabilities and Stockholders'
        Equity                                     $233,831      $302,614
                                             --------------- -------------

                         ATLANTIC TELE-NETWORK, INC.
          Unaudited Condensed Consolidated Statements of Operations
                    (in Thousands, Except per Share Data)

                                    Three Months Ended     Year Ended
                                       December 31,       December 31,
                                    ------------------ -------------------
                                      2005     2006      2005      2006
                                     -------- -------- --------- ---------
       Wireless                      $11,786  $17,697  $ 25,964  $ 61,946
       Local Telephone and Data        7,357   11,183    27,926    43,103
       International Long Distance    11,449   12,151    45,439    46,663
       Other Revenues                    790      963     2,952     3,646
                                     -------- -------- --------- ---------

       Total Revenue                  31,382   41,994   102,281   155,358

    Operating Expenses:
       Termination and Access Fees     3,535    5,408     7,941    22,687
       Internet and Programming          678      933     2,601     3,504
       Engineering and Operations      4,262    5,654    15,136    19,691
       Sales, Marketing and Customer
        Services                       1,772    3,760     6,457    10,088
       General and Administrative      4,851    5,729    15,624    21,767
       Depreciation and Amortization   4,886    6,477    17,110    24,510
       Non-Cash Stock Based
        Compensation                     119      213       420       822
                                     -------- -------- --------- ---------

    Total Operating Expenses          20,103   28,174    65,289   103,069
                                     -------- -------- --------- ---------

    Operating Income                  11,279   13,820    36,992    52,289

    Other Income (Expense):
       Interest Income (Expense),
        net                             (865)    (266)     (688)   (2,147)
       Other Income (Expense)         (1,775)     106      (630)      725
                                     -------- -------- --------- ---------

       Other Expense, net             (2,640)    (160)   (1,318)   (1,422)

    Income Before Income Taxes,
     Minority Interests and Equity
     in Earnings of Unconsolidated
     Affiliates                        8,639   13,660    35,674    50,867
       Income Taxes                    5,159    6,234    20,801    25,210
                                     -------- -------- --------- ---------

    Income Before Minority Interests
     and Equity in Earnings of
     Unconsolidated Affiliates         3,480    7,426    14,873    25,657
       Equity in Earnings of
        Unconsolidated Affiliates        763      457     3,043     2,467
       Minority Interests             (1,354)  (1,306)   (4,318)   (4,919)
                                     -------- -------- --------- ---------

       Net Income                    $ 2,889  $ 6,577  $ 13,598  $ 23,205
                                     -------- -------- --------- ---------

    Net Income Per Share
        Basic                        $  0.23  $  0.44  $   1.09  $   1.71
                                     -------- -------- --------- ---------
        Diluted                      $  0.23  $  0.43  $   1.09  $   1.70
                                     -------- -------- --------- ---------
    Weighted Average Common Shares
        Basic                         12,435   15,095    12,465    13,568
                                     -------- -------- --------- ---------
        Diluted                       12,480   15,247    12,488    13,672
                                     -------- -------- --------- ---------

For further information:

For further information: Atlantic Tele-Network, Inc. Michael T. Prior,
978-619-1300 Chief Executive Officer or Justin D. Benincasa, 978-619-1300
Chief Financial Officer

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