Atlantic Tele-Network, Inc. Reports Earnings of $0.42 Per Share for the First Quarter of 1999.ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--May 3, 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 $0.42 per share for the quarter ended March 31, 1999 on net income of $2.0 million. This compares to earnings per share of $0.99 for the quarter ended March 31, 1998 on net income of $4.9 million. The 1998 first quarter results included $2.3 million of earnings resulting from the settlement of a claim with an insurance carrier for the cancellation of an insurance policy. After excluding this unusual item, 1998 earnings were $2.6 million, or $0.53 per share. 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 March 31, 1999 were $20.7 million as compared to $22.4 million for 1998, a decrease of $1.7 million or 7.6%. Revenues in 1999 include a reduction of approximately $1.5 million due to an apparent re-origination of traffic through France Telecom via AT&T, which management suspects actually originated principally 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. and the United Kingdom and would have normally been settled at a higher rate. The effect of this re-origination on earnings is $488,000 or $0.11 per share. Management is currently investigating this re-origination issue. 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 $15.9 million for the first quarter of 1999 compared with $16.8 million for the corresponding quarter of 1998. This decrease was due primarily to reductions in audiotext Same as audiotex. traffic which resulted in reduced international long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. expense. 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, "Income from telephone operations declined 12% in the first quarter of 1999 compared to the first quarter of 1998, which was almost entirely due to the apparent 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 USA and UK traffic as traffic of French origin. Legitimate French traffic is settled at a lower rate than either USA or UK traffic. We do not believe that the traffic in question is legitimate French traffic. We are aggressively pursuing this issue and hope for a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. outcome. Audiotext revenues also declined compared to last year, but this was substantially offset by an increase of higher margin regular inbound traffic Traffic originating in an area outside the continental United States destined for or moving in the general direction of the continental United States. . Local access lines were up 10%, but local service revenues were down 12% due to a decline of approximately 27% in the value of the Guyana dollar Noun 1. Guyana dollar - the basic unit of money in Guyana dollar - the basic monetary unit in many countries; equal to 100 cents during 1998." Atlantic Tele-Network, Inc. is a telecommunications company See telecom company. with headquarters in St. Thomas, U.S. Virgin Islands. Its principal subsidiary, 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. 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 the national telephone service provider in the Cooperative Republic of Guyana for all local, long-distance and international service. ATN ATN Acute tubular necrosis, see there also owns a 75% interest in Digicom S.A., which provides dispatch radio See two-way radio. , wireless data network and paging services in Haiti Haiti (hā`tē), Fr. Haïti (äētē`), officially Republic of Haiti, republic (2005 est. pop. 8,122,000), 10,700 sq mi (27,713 sq km), West Indies, on the western third of the island of Hispaniola. and owns 30% of Bermuda Digital Communications Transmitting text, voice and video in binary form. See communications. Ltd., which when operational as "Cellular One," will be 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 Bermuda Telephone Company. 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, which is on file with the Securities and Exchange Commission.
ATLANTIC TELE-NETWORK, INC.
Statement of Operations Data
For the Three Months Ended March 31, 1998 and 1999
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
-------------------------
1998 1999
------------ ---------
Telephone operations:
Revenues:
Local exchange service revenues $ 2,213 $ 1,943
International long-distance revenues 19,901 18,452
Other revenues 248 346
------------ ---------
Total revenues 22,362 20,741
------------ ---------
Expenses:
International long-distance expenses 10,973 9,410
Telephone operating expenses 4,678 5,093
General and administrative expenses 1,146 1,365
------------ ---------
Total operating expenses 16,797 15,868
------------ ---------
Income from telephone operations 5,565 4,873
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Other operations:
Revenues of other operations - 332
Expenses of other operations - 460
------------ ---------
Loss from other operations - (128)
------------ ---------
Other income (expense):
Interest expense (581) (480)
Interest income 238 550
Other income (expense): 3,750 (105)
------------ ---------
Other income (expense), net: 3,407 (35)
------------ ---------
Income before income taxes and minority
interest 8,972 4,710
Income taxes 3,690 2,418
------------ ---------
Income before minority interest 5,282 2,292
Minority interest (411) (279)
------------ ---------
Net income $ 4,871 $ 2,013
============ =========
Net income per share:
Basic $ 0.99 $ 0.42
============ =========
Diluted $ 0.99 $ 0.42
============ =========
Weighted average common stock outstanding:
Basic 4,909 4,757
============ =========
Diluted 4,909 4,757
============ =========
ATLANTIC TELE-NETWORK, INC.
Selected Operations Statistics
For the Three Months Ended March 31, 1998 and 1999
(In Thousands, Except Access Line Data)
Guyana Telephone & Telegraph Co., Ltd.
As of As of
3/31/98 03/31/99
----------------- -------------
Access lines at end of period 56,323 62,075
================= =============
International Long-Distance Traffic:
For The For the
Three Months Three Months
Ended Ended
3/31/98 3/31/99
----------------- -------------
International Minutes of Traffic:
Inbound 11,517 13,220
Audiotext 15,848 11,819
----------------- -------------
Total inbound 27,365 25,039
Outbound 4,092 3,895
----------------- -------------
Total 31,457 28,934
International Minutes of Traffic
Mix:
Inbound 36.6% 45.7%
Audiotext 50.4% 40.8%
Outbound 13.0% 13.5%
----------------- -------------
Total 100.0% 100.0%
This schedule was previously released on April 13, 1999.
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