Atlantic Tele-Network, Inc. Reports Second Quarter 2002 Earnings Increase Over the First Quarter of 2002 But Down From Last Year.Business Editors/High-Tech Writers ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--Aug. 6, 2002 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 $2.2 million, or $0.43 per share, for the second quarter ended June June: see month. 30, 2002, an increase over first quarter earnings, which were $2.0 million, or $.40 per share. Earnings for the three months ended June 30, 2001 were $3.1 million, or $0.62 per share. The increase in second quarter 2002 earnings over first quarter 2002 was the result of an increase of $1.0 million, or 19%, in income from telephone operations. This increase was primarily due to an increase of $743,000, or 9%, in international long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. revenues as a result of growth of 21% in international minutes of traffic. In addition, local exchange service revenues increased in the second quarter by $344,000, or 6%, as a result of cellular subscribers growing from 51,244 in March 2002 to 57,048 in June 2002, an 11% increase in three months. These increases were offset in part by increased expenses associated with expansion and development at Atlantic Tele-Center, the Company's web-based call center 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. and by expenses associated with the conversion of the Company's wireless TV operations in the Virgin Islands from analog to digital. 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, 2002 were $16.5 million as compared to $21.4 million for the second quarter of 2001, a decrease of $4.9 million, or 23%. Regular inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound international traffic revenues decreased by $6.6 million, or 53%, as the international settlement rate for traffic from the U.S. to Guyana decreased from $.85 per minute to $.23 per minute effective January January: see month. 1, 2002. This decrease was partially offset by an increase in local exchange service revenues of $2.1 million, or 48%, due to increased cellular and wireline subscribers. Cellular subscribers increased from 18,412 at June 30, 2001 to 57,048 at June 30, 2002, an increase of over 200%, while wireline subscribers increased from 75,136 to 82,043, or 9%, for the same periods. 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 $10.4 million for the second quarter of 2002 compared with $12.7 million for the corresponding quarter of 2001, a decrease of $2.3 million or 18%. This decrease was due primarily to reductions in 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" international traffic expense as the international settlement rate for traffic from Guyana to the U.S. decreased from $.85 per minute to $.23 per minute effective January 1, 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 regret that we still have been unable to obtain an increase in local wireline rates in Guyana to offset the decrease in revenues from U.S. traffic. As a result, we earned only about 9% on our GT&T investment in the first six months, compared to the 15% guaranteed by our contract with the government of Guyana. We continue to press our efforts for a rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting of local rates, both with the Government and the PSC (Public Service Commission) Same as PUC. ." The Company also announced the selection of PricewaterhouseCoopers to replace Arther Andersen as the Company's accountants, as unanimously recommended by the Company's independent audit committee. Finally, ATN ATN Acute tubular necrosis, see there stated that while WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. is a leading carrier for GT&T, it does not expect service or financial disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. as a result of the current WorldCom situation. GT&T has relationships with multiple carriers including Sprint and AT&T, and owns cable facilities to 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. . 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 owns 100% of Choice Communications, 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. 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. ATN also holds a 44% investment 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 Digital Communications Transmitting text, voice and video in binary form. See communications. Ltd., the non-wireline cellular operator
in Bermuda using the name "Cellular One."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, 2001, and Form 10Q quarterly report for the quarter ended March 31, 2002 which are on file with the Securities and Exchange Commission.
Schedule A
ATLANTIC TELE-NETWORK, INC.
Statement of Operations Data
For the Three and Six Months Ended June 30, 2002 and 2001
(In Thousands, Except Per Share Data)
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------- ------------------
2002 2001 2002 2001
-------- -------- --------- --------
Telephone operations:
Revenues:
Local exchange service revenues $ 6,502 $ 4,388 $ 12,660 $ 7,930
International long-distance
revenues 9,261 16,381 17,779 30,468
Other revenues 783 670 1,419 1,413
-------- -------- --------- --------
Total revenues 16,546 21,439 31,858 39,811
-------- -------- --------- --------
Expenses:
International long-distance
expenses 2,417 4,220 5,085 8,193
Telephone operating expenses 6,868 6,920 13,236 13,014
General and administrative
expenses 1,125 1,579 2,268 2,882
-------- -------- --------- --------
Total operating expenses 10,410 12,719 20,589 24,089
-------- -------- --------- --------
Income from telephone
operations 6,136 8,720 11,269 15,722
-------- -------- --------- --------
Other operations:
Revenues of other operations 860 1,129 1,945 2,267
Expenses of other operations 2,124 1,831 4,030 3,684
-------- -------- --------- --------
Loss from other operations (1,264) (702) (2,085) (1,417)
-------- -------- --------- --------
Other income (expense):
Interest expense (131) (167) (286) (346)
Interest income 350 368 651 925
Equity in earnings of Bermuda
Digital Comm. 498 408 848 587
Other income (expense): 229 (412) 408 (314)
-------- -------- --------- --------
Other income (expense), net: 946 197 1,621 852
-------- -------- --------- --------
Income before income taxes and
minority interest 5,818 8,215 10,805 15,157
Income taxes 3,136 4,301 5,683 7,849
-------- -------- --------- --------
Income before minority interest 2,682 3,914 5,122 7,308
Minority interest (510) (809) (933) (1,437)
-------- -------- --------- --------
Net income $ 2,172 $ 3,105 $ 4,189 $ 5,871
======== ======== ========= ========
Net income per share:
Basic $ 0.43 $ 0.62 $ 0.84 $ 1.18
======== ======== ========= ========
Diluted $ 0.43 $ 0.62 $ 0.83 $ 1.17
======== ======== ========= ========
Weighted average common stock
outstanding:
Basic 4,995 4,987 4,995 4,987
======== ======== ========= ========
Diluted 5,066 5,025 5,066 5,010
======== ======== ========= ========
Schedule B
ATLANTIC TELE-NETWORK, INC.
Selected Operations Statistics
For the Quarters Ended December 31, 2001, March 31, 2002 and
June 30, 2001 and 2002
(In Thousands, Except Access Line Data)
Guyana Telephone & Telegraph Co., Ltd.
As of As of As of As of
06/30/02 03/31/02 12/31/01 06/30/01
-------- -------- -------- --------
Access lines (fixed) 82,043 81,386 79,913 75,136
======== ======== ======== ========
Cellular subscribers lines 57,048 51,244 39,206 18,412
======== ======== ======== ========
International Long-Distance Traffic:
For the Three For the Six
Months Ended Months Ended
-------- -------- -------- --------
06/30/02 03/31/02 06/30/02 06/30/01
-------- -------- -------- --------
International Minutes of Traffic:
Inbound 24,762 19,364 44,126 35,567
Audiotext 714 958 1,672 1,683
-------- -------- -------- --------
Total inbound 25,476 20,322 45,798 37,250
Outbound 4,644 4,484 9,128 9,573
-------- -------- -------- --------
Total 30,120 24,806 54,926 46,823
International Minutes of Traffic
Mix:
Inbound 82.2% 78.1% 80.3% 76.0%
Audiotext 2.4% 3.9% 3.1% 3.6%
Outbound 15.4% 18.0% 16.6% 20.4%
-------- -------- -------- --------
Total 100.0% 100.0% 100.0% 100.0%
======== ======== ======== ========
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