Atlantic Tele-Network, Inc. Announces Earnings For second Quarter 1999.ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--Aug. 6, 1999-- Atlantic Tele-Network, Inc. (AMEX AMEX See: American Stock Exchange :ANK ANK Ankara (Turkey) ANK Attempted, Not Known ANK Alphanumeric Keyboard ANK Anunaki (ancient Sumerian Gods) ), today reported earnings of $0.31per share for the quarter ended June 30, 1999 on net income of $1.46 million. This compares to earnings per share of $0.63 for the quarter ended June 30, 1998 on net income of $3.1 million. Telephone operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter ending June 30, 1999 were $18.3 million as compared to $23.7 million for 1998, a decrease of $5.4 million or 23%. The decrease in revenues was due primarily to the expected drop in audiotext traffic and to an increase in the "refiling" or mislabeling mislabeling, n 1. the inaccurate identification of a product in which the label lists ingredients or components that are not actually included within the product. 2. of traffic from the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and United Kingdom to Guyana. Total telephone operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $14.5 million for the second quarter of 1999 compared with $17.2 million for the corresponding quarter of 1998. This decrease was due primarily to reductions in audiotext traffic which resulted in reduced international long-distance expense. For the six months ended June 30, 1999 return on investment at GT&T was 6.6% per annum Per annum Yearly. currently being earned on rate base of $107 million. The contract among GT&T, ATN ATN Acute tubular necrosis, see there and the Government of Guyana calls for a minimum of 15% per annum return on investment. Atlantic Tele-Network, Inc. also announced that on July 28, 1999 its' subsidiary Guyana Telephone and Telegraph Company Limited received favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. decisions from the Guyana High Court in two pending cases against the Guyana Public Utilities Commission. GT&T had challenged PUC (Public Utility Commission) A regulatory body in every state in the U.S. that governs public utilities within its jurisdiction such as electricity, gas, oil, sewer, water, transportation and telephone service. Some states call it the Public Service Commission (PSC). orders barring payment of management fees and intercompany indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. to ATN. The High Court found that the PUC's proceedings violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. principles of natural justice and ordered de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. proceedings in both cases. In 1997 GT&T obtained temporary stays of both PUC orders, and since that time has been paying management fees to ATN and has fully paid its intercompany indebtedness "We have expected to see a continued decline in audiotext traffic and a reduction in GT&T's effective rates for inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound international traffic," said CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Cornelius B. Prior, Jr. "GT&T's application for rate relief for these events were filed with the PUC in December 1997 and October 1998 and are still pending." Mr. Prior added, "ATN is also actively seeking acquisitions which will offset the decline in revenue. We are in an extremely good position to expand our operations given our telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. expertise and strong financial position." Bermuda Digital Communications Transmitting text, voice and video in binary form. See communications. Ltd. ("BDC (Backup Domain Controller) In a Windows NT server, a copy of the Primary Domain Controller (PDC). The BDC is periodically synchronized with the PDC. See PDC. BDC - Backup Domain Controller ") commenced operations on July 2, 1999, offering under the "Cellular One" name brand, the Lucent system providing Bermudians for the first time with a choice in cellular carriers. BDC had over 700 subscribers in the small Bermuda market in its first 30 days of operations. BDC is the sole cellular and PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. competitor to the Bermuda Telephone Company. Atlantic Tele-Network, Inc. owns 30% of BDC's common stock and warrants to increase ATN's ownership to 45%. Atlantic Tele-Network, Inc. is a telecommunications company See telecom company. with headquarters in St. Thomas, U.S. Virgin Islands. Its' principal subsidiary, Guyana Telephone & Telegraph Company Limited, is the national telephone service provider in the Cooperative Republic of Guyana for all local, long-distance and international service. In addition to its' investment in GT&T and BDC, ATN has a 75% interest in Digicom S.A., which provides dispatch radio See two-way radio. , wireless data network and paging services in Haiti. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws. Actual results could differ materially from these statements as a result of many factors, including matters discussed in the Company's Form 10K annual report for the fiscal year ended December 31, 1998, and in the Company's Form 10Q report for the quarter ended March 31, 1999 which are on file with the Securities and Exchange Commission. Financial Tables Follow -0-
Schedule A
ATLANTIC TELE-NETWORK, INC.
Consolidated Condensed
Statements of Operations
(Columnar Amounts in Thousands, Except Per Share Data)
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- -------- -------- --------
1999 1998 1999 1998
Telephone Operations:
Revenues:
International long-
distance revenues $ 15,811 $ 21,081 $ 34,263 $ 40,982
Local exchange service 2,082 2,421 4,025 4,634
Other revenues 408 240 754 488
-------- -------- -------- --------
Total revenues 18,301 23,742 39,042 46,104
Expenses:
International long-
distance expenses 8,083 10,302 17,493 21,275
Telephone operating
expenses 4,927 5,612 10,020 10,290
General and
administrative 1,451 1,318 2,816 2,464
-------- -------- -------- --------
Total expenses 14,461 17,232 30,329 34,029
-------- -------- -------- --------
Income from
telephone
operations 3,840 6,510 8,713 12,075
Other Operations
Revenues of other
operations 385 -- 717 --
Expenses of other
operations 476 -- 936 --
-------- -------- -------- --------
Income from other
operations (91) -- (219) --
Non-operating Revenues
and Expenses:
Interest expense (463) (566) (943) (1,147)
Interest income 506 454 1,056 692
Other income (expense) (140) -- (245) 3,750
-------- -------- -------- --------
Non-operating revenues
and expenses, net (97) (112) (132) 3,295
-------- -------- -------- --------
Income before income
taxes and minority
interest 3,652 6,398 8,362 15,370
Income taxes 1,996 2,842 4,414 6,532
-------- -------- -------- --------
Income before minority
interest 1,656 3,556 3,948 8,838
Minority interest (195) (461) (474) (872)
-------- -------- -------- --------
Net income $ 1,461 $ 3,095 $ 3,474 $ 7,966
======== ======== ======== ========
Net income per share:
Basic $ 0.31 $ 0.63 $ 0.74 $ 1.62
======== ======== ======== ========
Diluted $ 0.31 $ 0.63 $ 0.74 $ 1.62
======== ======== ======== ========
Weighted average common
stock outstanding:
Basic 4,659 4,909 4,709 4,909
======== ======== ======== ========
Diluted 4,659 4,909 4,709 4,909
======== ======== ======== ========
Schedule B
ATLANTIC TELE-NETWORK, INC.
Selected Operations Statistics
For the Three and Six Months Ended June 30, 1998 and 1999
(In Thousands, Except Access Line Data)
Guyana Telephone & Telegraph
Co., Ltd.
As of As of As of
06/30/99 03/31/99 06/30/98
--------- -------- --------
Access lines at end of period 63,360 62,075 57,522
====== ====== ======
International Long-Distance Traffic:
For the Three Months For the Six Months
-------------------- --------------------
Ended Ended Ended Ended
06/30/99 06/30/98 06/30/99 06/30/98
-------- -------- -------- --------
International Minutes
of Traffic:
Inbound 14,081 12,371 27,301 23,888
Audiotext 10,524 14,884 22,343 30,732
------ ------ ------ ------
Total inbound 24,605 27,255 49,644 54,620
Outbound 3,935 4,078 7,830 8,170
------ ------ ------ ------
Total 28,540 31,333 57,474 62,790
International Minutes
of Traffic Mix:
Inbound 49.3% 39.5% 47.5% 38.0%
Audiotext 36.9% 47.5% 38.9% 49.0%
Outbound 13.8% 13.0% 13.6% 13.0%
------ ------ ------ ------
Total 100.0% 100.0% 100.0% 100.0%
This schedule was previously released on July 12, 1999.
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