ATN International, Inc. (ATNI) has reported 9.05 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $7.17 million, or $0.44 a share in the quarter, compared with $6.58 million, or $0.41 a share for the same period last year.
Revenue during the quarter surged 43.41 percent to $138.80 million from $96.78 million in the previous year period. Total expenses were 84.09 percent of quarterly revenues, up from 76.73 percent for the same period last year. That has resulted in a contraction of 736 basis points in operating margin to 15.91 percent.
Operating income for the quarter was $22.08 million, compared with $22.52 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $46.44 million compared with $39.65 million in the prior year period. At the same time, adjusted EBITDA margin contracted 751 basis points in the quarter to 33.46 percent from 40.97 percent in the last year period.
"This was the first full quarter of consolidated results following our recent Bermuda and U.S. Virgin Islands acquisitions, and we are pleased with the initial performance as it was in line with our expectations and represents a solid foundation from which to drive long-term revenue and operating synergies," said Michael Prior, chief executive officer.
Operating cash flow declines
ATN International, Inc. has generated cash of $92.10 million from operating activities during the nine month period, down 18.57 percent or $21.01 million, when compared with the last year period.
The company has spent $250.27 million cash to meet investing activities during the nine month period as against cash outgo of $12.76 million in the last year period. It has incurred net capital expenditure of $77.03 million on net basis during the nine month period, up 91.82 percent or $36.87 million from year ago period.
Cash flow from financing activities was $46.64 million for the nine month period as against cash outgo of $28.77 million in the last year period.
Cash and cash equivalents stood at $280.26 million as on Sep. 30, 2016, down 29.55 percent or $117.53 million from $397.80 million on Sep. 30, 2015.
Working capital drops significantly
ATN International, Inc. has witnessed a decline in the working capital over the last year. It stood at $246.96 million as at Sep. 30, 2016, down 36.68 percent or $143.05 million from $390.01 million on Sep. 30, 2015. Current ratio was at 2.79 as on Sep. 30, 2016, down from 5.40 on Sep. 30, 2015.
Days sales outstanding went down to 16 days for the quarter compared with 45 days for the same period last year.
Debt increases substantially
ATN International, Inc. has witnessed an increase in total debt over the last one year. It stood at $118.90 million as on Sep. 30, 2016, up 245.68 percent or $84.50 million from $34.40 million on Sep. 30, 2015. Total debt was 10.20 percent of total assets as on Sep. 30, 2016, compared with 3.63 percent on Sep. 30, 2015. Debt to equity ratio was at 0.15 as on Sep. 30, 2016, up from 0.05 as on Sep. 30, 2015.
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