Atlantic Tele-Network, Inc. Reports 2003 Full Year Earnings Increase of 29% And 4th Quarter Earnings Increase of 25% Over 4th Quarter 2002.Business Editors/High-Tech Writers ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--March 12, 2004 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 its operating results for the three months and year ended December December: see month. 31, 2003. ATN ATN Acute tubular necrosis, see there reported net income of $3.2 million, or $0.64 per share ($0.64 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), for the quarter ended December 31, 2003, compared to net income of $2.6 million, or $0.51 per share ($0.50 diluted), for the quarter ended December 31, 2002, an increase of 25%. Net income for the full year totaled $12.2 million, or $2.44 per share ($2.43 diluted), compared to earnings of $9.5 million, or $1.90 per share ($1.87 diluted), for 2002, an increase of 29%. For the full year 2003, total 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. rose 11% to $78.9 million, as compared to $70.8 million for 2002. Local exchange service revenues contributed nearly $6 million of this roughly $8 million increase, rising 21%. The increase in local exchange service revenues primarily reflects a 48% increase in GT&T's cellular subscribers, which increased from 79,915 on December 31, 2002 to 118,658 on December 31, 2003. For the same periods, GT&T's wireline subscribers (access lines) increased by 7% from 86,245 to 92,683 also contributing to the increase in revenues. International long distance revenues rose 6% on greater traffic volumes but lower revenue per minute. Income from telephone operations increased to $34.5 million in 2003, as compared to $27.4 million in 2002, an increase of $7.1 million or 26%. The Company was able to improve margins significantly by holding 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. essentially flat, offsetting a 15% increase in general and administrative expenses and an 8% increase in telephone operating expenses with a 24% reduction in international long distance expenses due to lower average outbound out·bound adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" termination rates Termination rates are the charges which one telecommunications operator will charge another in order to terminate calls on their network. For example, a customer of T-Mobile wishes to call a friend who has a Vodafone mobile. . Other operations, comprised of Choice Communications and Call Home Telecom in 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. Virgin Islands and Atlantic Tele-Center (ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered ) in Guyana Guyana (gīăn`ə, –än`–), officially Co-operative Republic of Guyana, republic (2005 est. pop. 765,000), 83,000 sq mi (214,969 sq km), NE South America. , continued to struggle in their development efforts, increasing revenues by 13%, but also increasing expenses resulting in a loss from other operations of $5.5 million, a 9% increase over 2002. Revenues and losses of other operations were adversely affected by writedowns of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying at Call Home Telecom. Cellular operations in Bermuda Bermuda (bûrmy  `də), British dependency (2005 est. pop. 65,400), 21 sq mi (53 sq km), comprising some 150 coral rocks, islets, and islands (of which some 20 are inhabited), in the were up 12% for the twelve months
ended December 31, 2003, with equity in earnings of 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 rising to $2 million from $1.8 million in 2002. Both increases reflect subscriber growth, as well as careful attention to costs. BDC ended the year with nearly 17,800 subscribers, as compared to approximately 16,600 subscribers at the end of 2002. Cornelius Cornelius, in the New Testament, centurion of an Italian cohort stationed at Caesarea, one of the first Gentile converts and traditionally first bishop of Caesarea. Cornelius Roman centurion baptized by Peter. [N.T.: Acts 10, 11] See : Baptism B. Prior, Jr., Chairman of the Board and Chief Executive Officer of Atlantic Tele-Network, Inc., said: "We are quite pleased with our overall results in 2003. Management of our GT&T subsidiary did an excellent job of keeping expenses in check while growing subscribers and lines. GT&T has publicly announced a goal of adding around 13,000 access lines in 2004, in continuation of our commitment to extend the core telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. infrastructure to new communities in Guyana. GT&T has also begun work on adding a GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. overlay (1) A preprinted, precut form placed over a screen, key or tablet for identification purposes. See keyboard template. (2) A program segment called into memory when required. to its TDMA (Time Division Multiple Access) A satellite and cellular phone technology that interleaves multiple digital signals onto a single high-speed channel. For cellular, TDMA triples the capacity of the original analog method (FDMA). system to allow it to offer new services to its customers. While the fourth quarter saw a substantial increase in cellular subscribers due to seasonal promotions, we do not expect to see the same growth of our base in 2004 and we expect incoming competition, which had originally announced plans to be operational in 2003, to begin offering services some time in 2004. Choice Communications, our U.S. Virgin Islands subsidiary, continued strong growth in its wireless CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. business and we believe that the additional investments we are making to expand and improve the network will lead to improved operating performance in 2004." For the quarter ended December 31, 2003 telephone operating revenues were $21.9 million, an increase of 14% over the fourth quarter of 2002. Both international long distance revenues and local exchange service revenues posted significant increases in the quarter, with local exchange service revenues rising by $1 million or 13% over the fourth quarter of 2002 due to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. strong cellular subscriber growth and, to a lesser extent, increased access lines in service. International long distance revenues increased by $1.7 million or 16% over the fourth quarter of 2002. While total minutes of use increased by 34% during the quarter, reflecting both increased cellular subscribers and lines in service, the average revenue per minute was lower due to a continued shift in the mix of traffic and the overall decline in international rates. International long distance revenues for the quarter ended December 31, 2003 includes $750,000 related to traffic generated in prior periods as GT&T received payment on settled disputes with two international carriers. The Company recorded other income of $826,000 in the fourth quarter of 2003, compared to expenses of $65,000 in the fourth quarter of 2002. This increase is primarily the result of a substantial net foreign exchange gain in the quarter, but a more modest gain for the year, stemming from a decline in the US dollar value of the Guyanese dollar The dollar (currency code GYD) has been the currency of Guyana (formerly British Guiana) since 1839. It is normally abbreviated with the dollar sign $, or alternatively GY$ to distinguish it from other dollar-denominated currencies. . 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 and Telegraph telegraph, term originally applied to any device or system for distant communication by means of visible or audible signals, now commonly restricted to electrically operated devices. Attempts at long-distance communication date back thousands of years (see signaling). Company, Limited, is 80% owned by ATN and is the national telephone service provider in the Cooperative Republic of Guyana for all local, long-distance and international service. ATN also owns 44% of Bermuda Digital Communications Transmitting text, voice and video in binary form. See communications. Ltd., doing business in Bermuda as Cellular One, 100% of Choice Communications, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the largest Internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. in the United States Virgin Islands and the only wireless TV provider in the USVI USVI United States Virgin Islands USVI US Vision, Inc. (stock symbol) USVI United States Vegetation Index , as well as 100% of Atlantic Tele-Center, Inc., a Web-enabled outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. call center in Guyana. 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 year ended December 31, 2002, and Form 10-Q Form 10-Q See 10-Q. quarterly reports for the quarters ended March 31, 2003, June 30, 2003 and September 30, 2003, which are on file with the Securities and Exchange Commission.
SCHEDULE A
ATLANTIC TELE-NETWORK, INC.
Statement of Operations Data
For the Three and Twelve Months Ended December 31, 2003 and 2002
(In Thousands, Except Per Share Data)
Three Months Ended Twelve Months Ended
December 31, December 31,
(Unaudited) (Unaudited)
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Telephone Operations:
Operating revenues:
International long-distance
revenues $12,247 $10,538 $42,017 $39,711
Local exchange service
revenues 8,712 7,736 33,483 27,788
Other revenues 962 1,018 3,365 3,311
--------- --------- --------- ---------
Total operating revenues 21,921 19,292 78,865 70,810
Operating expenses:
International long-distance
expenses 1,646 1,938 7,087 9,344
Telephone operating
expenses 8,935 7,750 30,679 28,309
General and administrative
expenses 1,661 1,702 6,637 5,776
--------- --------- --------- ---------
Total telephone
operating expenses 12,242 11,390 44,403 43,429
--------- --------- --------- ---------
Income from telephone
operations 9,679 7,902 34,462 27,381
--------- --------- --------- ---------
Other Operations:
Revenues of other
operations 860 1,170 4,422 3,908
Expenses of other
operations 2,872 2,429 9,896 8,916
--------- --------- --------- ---------
Loss from other
operations (2,012) (1,259) (5,474) (5,008)
--------- --------- --------- ---------
Other Income (expense):
Interest expense (179) (173) (424) (686)
Interest income 127 155 511 991
Equity in earnings of Bermuda
Digital Telecommunications 382 285 2,030 1,812
Other income (expense) 826 (65) 631 344
--------- --------- --------- ---------
Total other income
(expense), net 1,156 202 2,748 2,461
--------- --------- --------- ---------
Income before Income Taxes and
Minority Interest 8,823 6,845 31,736 24,834
Income Taxes 4,403 3,586 16,008 12,943
--------- --------- --------- ---------
Income before Minority
Interest 4,420 3,259 15,728 11,891
Minority Interest (1,227) (707) (3,484) (2,404)
--------- --------- --------- ---------
Net Income 3,193 2,552 12,244 9,487
========= ========= ========= =========
Net Income Per Share:
Basic $0.64 $0.51 $2.44 $1.90
========= ========= ========= =========
Diluted $0.64 $0.50 $2.43 $1.87
========= ========= ========= =========
Weighted Average Common Shares
Outstanding:
Basic 5,024 5,001 5,018 5,000
========= ========= ========= =========
Diluted 5,024 5,071 5,033 5,071
========= ========= ========= =========
SCHEDULE B
ATLANTIC TELE-NETWORK, INC.
Select Operations Statistics
(In Thousands, Except Access Line Data)
Guyana Telephone & Telegraph Co., Ltd.
As of As of As of As of
2003 12/31/03 9/30/03 6/30/03 3/31/03
--------- --------- --------- ---------
Access lines (fixed) 92,683 89,693 88,138 87,057
========= ========= ========= =========
Cellular subscriber lines 118,658 107,807 104,852 92,756
========= ========= ========= =========
As of As of As of As of
2002 12/31/02 9/30/02 6/30/02 3/31/02
--------- --------- --------- ---------
Access lines (fixed) 86,245 83,791 82,043 81,386
========= ========= ========= =========
Cellular subscriber lines 79,915 67,931 57,048 51,244
========= ========= ========= =========
International Long-Distance Traffic:
Twelve
Months
2003 For the Three Months Ended Ended
------------------------------------ --------
12/31/03 9/30/03 6/30/03 3/31/03 12/31/03
--------- -------- -------- -------- --------
International Minutes of
Traffic:
Inbound 36,596 29,761 29,820 28,164 124,341
Outbound 6,863 6,848 6,331 5,602 25,644
-------- -------- -------- -------- --------
Total international
Minutes 43,459 36,609 36,151 33,766 149,985
International Minutes of
Traffic Mix:
Inbound 84.2% 81.3% 82.5% 83.4% 82.9%
Outbound 15.8% 18.7% 17.5% 16.6% 17.1%
-------- -------- -------- -------- --------
Total International
Minutes 100.0% 100.0% 100.0% 100.0% 100.0%
======== ======== ======== ======== ========
Twelve
Months
2002 For the Three Months Ended Ended
------------------------------------ --------
12/31/02 9/30/02 6/30/02 3/31/02 12/31/02
--------- -------- -------- -------- --------
International Minutes of
Traffic:
Inbound 27,680 26,752 25,475 20,322 100,229
Outbound 4,748 4,975 4,644 4,484 18,851
-------- -------- -------- -------- --------
Total international
Minutes 32,428 31,727 30,120 24,807 119,080
International Minutes of
Traffic Mix:
Inbound 85.4% 84.3% 84.6% 81.9% 84.2%
Outbound 14.6% 15.7% 15.4% 18.1% 15.8%
-------- -------- -------- -------- --------
Total International
Minutes 100.0% 100.0% 100.0% 100.0% 100.0%
======== ======== ======== ======== ========
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