Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 11, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'ATLANTIC TELE NETWORK INC /DE | ' |
Entity Central Index Key | '0000879585 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 15,924,748 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $348,804 | $356,607 |
Restricted cash | 58,794 | 39,000 |
Accounts receivable, net of allowances of $9.7 million and $9.1 million, respectively | 44,598 | 37,680 |
Materials and supplies | 8,507 | 7,269 |
Deferred income taxes | 1,994 | 1,994 |
Prepayments and other current assets | 21,182 | 24,705 |
Assets of discontinued operations | 169 | 4,748 |
Total current assets | 484,048 | 472,003 |
Fixed Assets: | ' | ' |
Property, plant and equipment | 626,716 | 606,912 |
Less: accumulated depreciation | -373,689 | -352,280 |
Net fixed assets | 253,027 | 254,632 |
Telecommunication licenses, net | 40,301 | 39,687 |
Goodwill | 45,077 | 45,077 |
Trade name license, net | 417 | 417 |
Customer relationships, net | 1,647 | 1,807 |
Restricted cash | ' | 39,000 |
Other assets | 6,247 | 7,096 |
Total assets | 830,764 | 859,719 |
Current Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 39,892 | 41,709 |
Dividends payable | 4,311 | 4,279 |
Accrued taxes | 6,441 | 36,081 |
Advance payments and deposits | 7,784 | 8,327 |
Deferred income taxes | 1,601 | 1,601 |
Other current liabilities | 3,353 | 17,889 |
Liabilities of discontinued operations | 13,698 | 11,187 |
Total current liabilities | 77,080 | 121,073 |
Deferred income taxes | 25,428 | 26,007 |
Other liabilities | 16,655 | 12,784 |
Total liabilities | 119,163 | 159,864 |
Commitments and contingencies (Note 12) | ' | ' |
Atlantic Tele-Network, Inc. Stockholders' Equity: | ' | ' |
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $0.01 par value per share; 50,000,000 shares authorized; 16,494,982 and 16,631,797 shares issued, respectively, and 15,816,189 and 15,924,748 shares outstanding, respectively | 166 | 164 |
Treasury stock, at cost; 678,793 and 707,049 shares, respectively | -15,166 | -13,389 |
Additional paid-in capital | 142,589 | 139,106 |
Retained earnings | 530,399 | 519,651 |
Accumulated other comprehensive loss | -2,199 | -2,202 |
Total Atlantic Tele-Network, Inc. stockholders' equity | 655,789 | 643,330 |
Non-controlling interests | 55,812 | 56,525 |
Total equity | 711,601 | 699,855 |
Total liabilities and equity | $830,764 | $859,719 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowances (in dollars) | $9.10 | $9.70 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 16,631,797 | 16,494,982 |
Common stock, shares outstanding | 15,924,748 | 15,816,189 |
Treasury stock, shares | 707,049 | 678,793 |
CONDENSED_CONSOLIDATED_INCOME_
CONDENSED CONSOLIDATED INCOME STATEMENTS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUE: | ' | ' | ' | ' |
Total revenue | $83,269 | $71,626 | $158,443 | $136,458 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | ' | ' | ' | ' |
Termination and access fees | 16,231 | 13,601 | 32,093 | 26,656 |
Engineering and operations | 9,521 | 9,182 | 19,151 | 18,840 |
Sales and marketing | 4,926 | 4,787 | 9,946 | 9,276 |
Equipment expense | 3,273 | 2,834 | 5,988 | 5,501 |
General and administrative | 14,435 | 13,120 | 28,133 | 25,029 |
Transaction-related charges | 346 | ' | 367 | 63 |
Depreciation and amortization | 12,930 | 12,195 | 24,910 | 24,183 |
Gain on disposition of long lived asset | ' | ' | ' | -1,076 |
Total operating expenses | 61,662 | 55,719 | 120,588 | 108,472 |
Income from operations | 21,607 | 15,907 | 37,855 | 27,986 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Interest expense, net | -20 | -2,722 | -207 | -4,986 |
Other income (expense), net | 73 | 13 | -36 | 27 |
Other income (expense), net | 53 | -2,709 | -243 | -4,959 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 21,660 | 13,198 | 37,612 | 23,027 |
Income tax expense | 7,338 | 4,868 | 12,890 | 8,813 |
INCOME FROM CONTINUING OPERATIONS | 14,322 | 8,330 | 24,722 | 14,214 |
Income from discontinued operations, net of tax | ' | 3,091 | ' | 7,125 |
NET INCOME | 14,322 | 11,421 | 24,722 | 21,339 |
Net income attributable to non-controlling interests, net of tax: | ' | ' | ' | ' |
Continuing operations | -2,809 | -1,934 | -5,368 | -2,989 |
Discontinued operations | ' | -630 | ' | -717 |
Net income attributable to non-controlling interests, net of tax | -2,809 | -2,564 | -5,368 | -3,706 |
NET INCOME ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS | 11,513 | 8,857 | 19,354 | 17,633 |
NET INCOME PER WEIGHTED AVERAGE BASIC SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.72 | $0.41 | $1.22 | $0.72 |
Discontinued operations (in dollars per share) | ' | $0.16 | ' | $0.41 |
Total (in dollars per share) | $0.72 | $0.57 | $1.22 | $1.13 |
NET INCOME PER WEIGHTED AVERAGE DILUTED SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.72 | $0.40 | $1.21 | $0.71 |
Discontinued operations (in dollars per share) | ' | $0.16 | ' | $0.41 |
Total (in dollars per share) | $0.72 | $0.56 | $1.21 | $1.12 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ' | ' | ' | ' |
Basic (in shares) | 15,915 | 15,706 | 15,873 | 15,647 |
Diluted (in shares) | 16,023 | 15,821 | 15,986 | 15,756 |
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK (in dollars per share) | $0.27 | $0.25 | $0.54 | $0.50 |
U.S. wireless | ' | ' | ' | ' |
REVENUE: | ' | ' | ' | ' |
Total revenue | 37,456 | 26,589 | 65,848 | 47,802 |
International wireless | ' | ' | ' | ' |
REVENUE: | ' | ' | ' | ' |
Total revenue | 22,422 | 21,837 | 45,570 | 43,267 |
Wireline | ' | ' | ' | ' |
REVENUE: | ' | ' | ' | ' |
Total revenue | 21,283 | 20,877 | 42,813 | 41,441 |
Equipment and other | ' | ' | ' | ' |
REVENUE: | ' | ' | ' | ' |
Total revenue | $2,108 | $2,323 | $4,212 | $3,948 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
Net income | $24,722 | $21,339 |
Other comprehensive income: | ' | ' |
Unrealized gain on interest rate swap, net of tax expense of $2.2 million and $0.0 million, respectively | ' | 3,265 |
Other comprehensive income, net of tax | ' | 3,265 |
Comprehensive income | 24,722 | 24,604 |
Less: Comprehensive income attributable to non-controlling interests | -5,368 | -3,706 |
Comprehensive income attributable to Atlantic Tele-Network, Inc. | $19,354 | $20,898 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
Unrealized gain on interest rate swap, tax expense | $0 | $2.20 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $24,722 | $21,339 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ' | ' |
Depreciation and amortization | 24,910 | 24,183 |
Provision for doubtful accounts | 256 | 569 |
Amortization of debt discount and debt issuance costs | 48 | 631 |
Stock-based compensation | 2,379 | 1,972 |
Income from discontinued operations, net of tax | ' | -7,125 |
Gain on disposition of long-lived assets | ' | -1,076 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | ' | ' |
Accounts receivable | -7,174 | -6,104 |
Materials and supplies, prepayments, and other current assets | -3,336 | -7,216 |
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities | -641 | 10,026 |
Accrued taxes | -23,952 | -24,028 |
Other | -1,905 | -653 |
Net cash provided by operating activities of continuing operations | 15,307 | 12,518 |
Net cash provided by (used in) operating activities of discontinued operations | -3,255 | 22,917 |
Net cash provided by operating activities | 12,052 | 35,435 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -25,104 | -39,696 |
Proceeds from disposition of long-lived assets | 1,371 | 1,500 |
Decrease in restricted cash | 19,206 | ' |
Net cash used in investing activities of continuing operations | -4,527 | -38,196 |
Net cash used in investing activities of discontinued operations | ' | -12,487 |
Net cash used in investing activities | -4,527 | -50,683 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Dividends paid on common stock | -8,574 | -3,919 |
Distributions to non-controlling interests | -6,081 | -1,624 |
Payment of debt issuance costs | ' | -12 |
Principal repayment of term loan | ' | -3,920 |
Proceeds from stock option exercises | 610 | 1,232 |
Purchase of common stock | -1,283 | -915 |
Investments made by minority shareholders in consolidated affiliates | ' | 135 |
Net cash used in financing activities of continuing operations | -15,328 | -9,023 |
Net cash used in financing activities of discontinued operations | ' | -938 |
Net cash used in financing activities | -15,328 | -9,961 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -7,803 | -25,209 |
CASH AND CASH EQUIVALENTS, beginning of the period | 356,607 | 136,647 |
CASH AND CASH EQUIVALENTS, end of the period | $348,804 | $111,438 |
ORGANIZATION_AND_BUSINESS_OPER
ORGANIZATION AND BUSINESS OPERATIONS | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
ORGANIZATION AND BUSINESS OPERATIONS | ' | ||||||
ORGANIZATION AND BUSINESS OPERATIONS | ' | ||||||
1. ORGANIZATION AND BUSINESS OPERATIONS | |||||||
The Company is a telecommunications holdings company that, through its operating subsidiaries, provides wireless and wireline telecommunications services in North America, Bermuda and the Caribbean. | |||||||
The Company offers the following principal services: | |||||||
· Wireless. In the United States, the Company offers wholesale wireless voice and data roaming services to national, regional, local and selected international wireless carriers in rural markets located principally in the Southwest and Midwest. The Company also offers wireless voice and data services to retail customers in Bermuda, Guyana, the Caribbean and smaller markets in the United States. | |||||||
· Wireline. The Company’s local telephone and data services include its operations in Guyana and the mainland United States. The Company is the exclusive licensed provider of domestic wireline local and long-distance telephone services in Guyana and international voice and data communications into and out of Guyana. The Company also offers facilities-based integrated voice and data communications services to enterprise and residential customers in New England, primarily in Vermont, and wholesale transport services in Vermont and New York State. In addition, the Company offers wholesale long-distance voice services to telecommunications carriers. | |||||||
The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which the Company reports its revenue and the markets it served as of June 30, 2014: | |||||||
Services | Segment | Markets | Tradenames | ||||
Wireless | U.S. Wireless | United States | Commnet, Choice | ||||
Island Wireless | Aruba, Bermuda, Turks and Caicos, U.S. Virgin Islands | Mio, CellOne, Islandcom, Choice | |||||
International Integrated Telephony | Guyana | Cellink | |||||
Wireline | International Integrated Telephony | Guyana | GT&T, eMagine | ||||
U.S. Wireline | United States (New England and New York State) | Sovernet, ION, EssexTel | |||||
The Company is actively evaluating potential strategic acquisitions and investment opportunities, both domestic and international, that meet its return-on-investment and other acquisition criteria. The Company provides management, technical, financial, regulatory, and marketing services to its subsidiaries and typically receives a management fee equal to a percentage of their respective revenue. Management fees from subsidiaries are eliminated in consolidation. For information about the Company’s business segments and geographical information about its revenue, operating income and long-lived assets, see Note 11 to the Condensed Consolidated Financial Statements. | |||||||
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
2. BASIS OF PRESENTATION | |
The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial information included herein is unaudited; however, the Company believes such information and the disclosures herein are adequate to make the information presented not misleading and reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial position and results of operations for such periods. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Results of interim periods may not be indicative of results for the full year. These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K. | |
See Note 4 for information regarding the Company’s sale of its U.S. retail wireless business operated under the Alltel name. The assets, liabilities and operations of the Alltel business have been classified as discontinued for all periods presented. Unless indicated otherwise, the information in the notes to the Condensed Consolidated Financial Statements refer only to our continuing operations. | |
Consolidation | |
The consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and certain entities, which are consolidated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) authoritative guidance on the consolidation of variable interest entities since it is determined that the Company is the primary beneficiary of these entities. | |
During the six months ended June 30, 2014, the Company recognized approximately $0.7 million in general and administrative expenses to correct for an understatement of transactional tax liabilities generated in periods during 2013. The Company determined that the impact of the correction of this error was not material to the current or any prior period financial statements. | |
The Company’s effective tax rate declined in 2014 as the result of increased income in lower taxed jurisdictions, such as Bermuda, as compared to 2013. The Company’s effective tax rate in 2013 was higher than the statutory federal income tax rate of 35% (plus applicable statutory state income tax rates) due primarily to (i) the portion of our earnings that are taxed in Guyana at 45%, and (ii) a portion of the Company’s earnings that include losses generated in foreign jurisdictions for which we receive no tax benefit since these are non-tax jurisdictions. The Company’s effective tax rates for the three months ended June 30, 2013 and 2014 were 36.9% and 33.9%, respectively. The Company’s effective tax rates for the six months ended June 30, 2013 and 2014 were 38.3% and 34.3%, respectively. | |
Recent Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. | |
In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective beginning January 1, 2017, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements. | |
In April 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 provides guidance on determining when disposals can be presented as discontinued operations. ASU 2014-08 requires that only disposals representing a strategic shift in operations should be presented as discontinued operations. A strategic shift may include a disposal of a major line of business, major equity method investment or a major part of an entity. Additionally, ASU 2014-08 requires expanded disclosures regarding discontinued operations. This standard is effective prospectively for reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s condensed consolidated financial statements. | |
In March 2013, the FASB issued ASU 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 provides clarification regarding whether ASC 810-10, “Consolidation — Overall” or ASC 830-30, “Foreign Currency Matters—Translation of Financial Statements,” applies to the release of cumulative translation adjustments into net income when a reporting entity either sells a part or all of its investment in a foreign entity or ceases to have a controlling financial interest in a subsidiary or group of assets that constitute a business within a foreign entity. The revised standard is effective for reporting periods beginning after December 15, 2013. The adoption of this amendment did not have a material impact on the Company’s condensed consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force),” which states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a company does not have: (i) a net operating loss carryforward; (ii) a similar tax loss; or (iii) a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The authoritative guidance is effective for fiscal years and the interim periods within those fiscal years beginning on or after December 15, 2013 and was applied on a prospective basis. The adoption of this authoritative guidance did not have a material impact on the Company’s condensed consolidated financial statements. | |
USE_OF_ESTIMATES
USE OF ESTIMATES | 6 Months Ended |
Jun. 30, 2014 | |
USE OF ESTIMATES | ' |
USE OF ESTIMATES | ' |
3. USE OF ESTIMATES | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates relate to the allowance for doubtful accounts, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in purchase business combinations, fair value of indefinite-lived intangible assets, goodwill and income taxes. Actual results could differ significantly from those estimates | |
DISCONTINUED_OPERATIONS_SALE_O
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | ' | |||||||||||||
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | ' | |||||||||||||
4. DISCONTINUED OPERATIONS — SALE OF U.S. RETAIL WIRELESS BUSINESS | ||||||||||||||
On September 20, 2013, the Federal Communications Commission announced its approval of the previously announced proposed sale of the Company’s U.S. retail wireless business operated under the Alltel name to AT&T Mobility for approximately $780.0 million in cash plus $16.8 million in working capital adjustments. The Company previously reported the operations of this business within its U.S. Wireless segment. As a result of that approval, the Company completed the sale of certain U.S. retail wireless assets on that date. | ||||||||||||||
The $796.8 million in cash proceeds included $78.0 million of cash to be held in a general indemnity escrow account. Subject to the terms and conditions of the purchase agreement between AT&T Mobility and the Company governing the sale, the restrictions on $19.5 million of these funds expired March 2014. The remaining $58.5 million has been recorded as restricted cash on the Company’s June 30, 2014 balance sheet and classified as a current asset since $19.5 million and $39.0 million will be released, subject to any indemnity claims, to the Company in September 2014 and March 2015, respectively. | ||||||||||||||
As of June 30, 2014, the Company has also recorded $7.3 million for the minority shareholders’ interests in the sold operation which is based on the estimated final distributions to the minority shareholders and is included in non-controlling interests on its balance sheet. | ||||||||||||||
The Company has reclassified the assets of its Alltel operations, consisting of prepaid expenses and other current assets, and liabilities of its Alltel operations, consisting of accounts payable and other current liabilities, to assets of discontinued operations and liabilities of discontinued operations, respectively, within its December 31, 2013 and June 30, 2014 balance sheets. | ||||||||||||||
Revenues and income from discontinued operations related to the Alltel business for the three months and six months ended June 30, 2013 and 2014 were as follows (in thousands): | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Revenue from discontinued operations | $ | 103,446 | $ | — | $ | 211,483 | $ | — | ||||||
Income from discontinued operations, net of tax expense of $1.8 million and $4.3 million for the three and six months ended June 30, 2013 respectively | 3,091 | — | 7,125 | — | ||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
5. FAIR VALUE MEASUREMENTS | |||||||||||
In accordance with the provisions of fair value accounting, a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model. | |||||||||||
The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: | |||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 assets and liabilities include money market funds, debt and equity securities and derivative contracts that are traded in an active exchange market. | ||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes corporate obligations and non-exchange traded derivative contracts. | ||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments and intangible assets that have been impaired whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | ||||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2013 and June 30, 2014 are summarized as follows (in thousands): | |||||||||||
December 31, 2013 | |||||||||||
Description | Quoted Prices in | Significant Other | Total | ||||||||
Active Markets | Observable Inputs | ||||||||||
(Level 1) | (Level 2) | ||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | |||||
Money market funds | $ | 2,244 | $ | — | $ | 2,244 | |||||
Total assets measured at fair value | $ | 2,244 | $ | 363 | $ | 2,607 | |||||
June 30, 2014 | |||||||||||
Description | Quoted Prices in | Significant Other | Total | ||||||||
Active Markets | Observable Inputs | ||||||||||
(Level 1) | (Level 2) | ||||||||||
Certificate of deposit | $ | — | $ | 363 | $ | 363 | |||||
Money market funds | $ | 2,039 | $ | — | $ | 2,039 | |||||
Total assets measured at fair value | $ | 2,039 | $ | 363 | $ | 2,402 | |||||
Certificate of Deposit | |||||||||||
As of December 31, 2013 and June 30, 2014, this asset class consisted of a time deposit at a financial institution denominated in U.S. dollars. The asset class is classified within Level 2 of the fair value hierarchy because the fair value was based on observable market data. | |||||||||||
Money Market Funds | |||||||||||
As of December 31, 2013 and June 30, 2014, this asset class consisted of a money market portfolio that comprises Federal government and U.S. Treasury securities. The asset class is classified within Level 1 of the fair value hierarchy because its underlying investments are valued using quoted market prices in active markets for identical assets. | |||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2014 | |
LONG-TERM DEBT | ' |
LONG-TERM DEBT | ' |
6. LONG-TERM DEBT | |
The Company has a credit facility (the “Credit Facility”) which previously included two term loans and currently provides for a revolver loan of up to $100.0 million. The revolver loan also has a $10.0 million swingline sub-facility and a $55.0 million letter of credit sub-facility for issuance in connection with the Company’s Mobility Fund Grant obligations (see Note 8). | |
On September 20, 2013 the Company repaid its outstanding term loans in full. Amounts borrowed under the term loans bore interest at a rate equal to, at the Company’s option, either (i) at the London Interbank Offered Rate (LIBOR) plus an applicable margin ranging between 2.00% to 4.00% or (ii) a base rate plus an applicable margin ranging from 1.00% to 3.00%. The base rate was equal to the higher of (i) 1.50% plus the higher of (x) the one-week LIBOR and (y) the one-month LIBOR; or (ii) the prime rate (as defined in the Credit Facility). The applicable margin was determined based on the ratio of our indebtedness (as defined in the Credit Facility) to our EBITDA (as defined in the Credit Facility). | |
Amounts borrowed under the revolver loan bear interest at a rate equal to, at the Company’s option, either (i) LIBOR plus an applicable margin ranging between 2.00% to 3.50% or (ii) a base rate plus an applicable margin ranging from 1.00% to 2.50% (or, in the case of amounts borrowed under the swing-line sub- facility, an applicable margin ranging from 0.50% to 2.00%.) The Company must also pay a fee ranging from 0.25% to 0.50% of the average daily unused portion of the revolver loan over each calendar quarter, which fee is payable in arrears on the last day of each calendar quarter. | |
The Credit Facility contains customary representations, warranties and covenants, including covenants by the Company limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. In addition, the Credit Facility contains financial covenants by the Company that (i) impose a maximum leverage ratio of indebtedness to EBITDA, (ii) require a minimum debt service ratio of EBITDA to principal, interest and taxes payments and (iii) require a minimum ratio of equity to consolidated assets. As of June 30, 2014, we were in compliance with all of the financial covenants of the Credit Facility. | |
Note Payable—Other | |
In connection with the Company’s merger of its Bermuda subsidiary with M3 Wireless, Ltd. in May 2011, the Company assumed a term loan of approximately $7.0 million owed to Keytech Ltd., the former parent company of M3 Wireless, Ltd. and current 42% minority shareholder in the Company’s Bermuda operations. This term loan, which bore interest at 7% per annum, was repaid in full in July 2013. | |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||
7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||
The Company’s objective in using interest rate derivatives was to add stability to interest expense and to manage its exposure to the interest rate movements of its variable-rate debt. To accomplish this objective, the Company primarily used interest rate derivatives as part of its interest rate risk management strategy. Interest rate derivatives, designated as cash flow hedges, involved the receipt of variable-rate amounts from counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | ||||||||||||
The effective portion of changes in the fair value of interest rate derivatives that qualified as cash flow hedges was recorded in accumulated other comprehensive income and was subsequently reclassified into earnings in the period that the hedged forecasted transaction affected earnings. | ||||||||||||
As a result of the repayment of its variable-rate debt on September 20, 2013, the Company terminated its interest rate derivatives in October 2013. | ||||||||||||
Amounts previously reported in accumulated other comprehensive income related to the interest rate derivatives were reclassified to “Unrealized loss on interest rate derivative contracts” as of the date of the prepayment of the Company’s outstanding term notes. | ||||||||||||
The table below presents the effect of the Company’s derivative financial instruments on the consolidated income statements for the three and six months ended June 30, 2013 and 2014 (in thousands): | ||||||||||||
Three Months | Derivative in Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||
Ended | Hedging Relationships | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | ||||||||
June 30, | in Other | from Accumulated | from Accumulated | |||||||||
Comprehensive | Other | Other | ||||||||||
Income on | Comprehensive | Comprehensive | ||||||||||
Derivative | Income into Income | Income into | ||||||||||
(Effective Portion) | (Effective Portion) | Income | ||||||||||
(Effective Portion) | ||||||||||||
2013 | Interest Rate Swap | $ | 4,373 | Interest expense | $ | 1,039 | ||||||
2014 | Interest Rate Swap | $ | — | Interest expense | $ | — | ||||||
Six Months | Derivative in Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||
Ended | Hedging Relationships | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | ||||||||
June 30, | in Other | from Accumulated | from Accumulated | |||||||||
Comprehensive | Other | Other | ||||||||||
Income on | Comprehensive | Comprehensive | ||||||||||
Derivative | Income into Income | Income into | ||||||||||
(Effective Portion) | (Effective Portion) | Income | ||||||||||
(Effective Portion) | ||||||||||||
2013 | Interest Rate Swap | $ | 5,441 | Interest expense | $ | (2,022 | ) | |||||
2014 | Interest Rate Swap | $ | — | Interest expense | $ | — | ||||||
GOVERNMENT_GRANTS
GOVERNMENT GRANTS | 6 Months Ended |
Jun. 30, 2014 | |
GOVERNMENT GRANTS | ' |
GOVERNMENT GRANTS | ' |
8. GOVERNMENT GRANTS | |
The Company has received funding from the U.S. Government and its agencies under Stimulus and Mobility Fund programs. These are generally designed to fund telecommunications infrastructure expansion into rural or underserved areas of the United States. The fund programs are evaluated to determine if they represent funding related to capital expenditures (capital grants) or operating activities (income grants). | |
Stimulus Grants | |
The Company was awarded several federal stimulus grants in 2009 and 2010 by the U.S. Government under provisions of the American Recovery and Reinvestment Act of 2009 intended to stimulate the deployment of broadband infrastructure and services to rural, unserved and underserved areas. As of June 30, 2014, the Company has spent (i) $35.8 million in capital expenditures (of which $27.5 million has been funded by the federal stimulus grant) in connection with the Company’s build of ten new segments of fiber-optic, middle-mile broadband infrastructure in upstate New York and parts of Pennsylvania and Vermont; (ii) $7.6 million in capital expenditures (of which $5.3 million has been funded by the federal stimulus grant) in connection with the Company’s last-mile broadband infrastructure buildout in the Navajo Nation across Arizona, New Mexico and Utah; and (iii) $45.4 million in capital expenditures (of which $31.8 million has been or is expected to be funded by the federal stimulus grant) in connection with the Company’s fiber-optic middle mile network buildout to provide broadband and transport services to over 340 community anchor institutions in Vermont. The results of the Company’s New York and Vermont stimulus projects are included in the Company’s “U.S. Wireline” segment and the results of the Company’s Navajo stimulus project are included in the Company’s “U.S. Wireless” segment. The New York and Navajo Stimulus projects were completed during 2013. The Vermont stimulus project will be completed during the latter half of 2014 and the Company anticipates that it will incur an additional $3.0 million of capital expenditures of which $2.1 million is expected to be funded by the federal stimulus grants. | |
Mobility Fund Grants | |
As part of the Federal Communications Commission’s (“FCC”) reform of its Universal Service Fund (“USF”) program, which previously provided support to carriers seeking to offer telecommunications services in high-cost areas and to low-income households, the FCC created the Mobility Fund and the Tribal Mobility Fund, each a one-time award meant to support wireless coverage in underserved geographic areas in the United States. In August 2013, the Company received FCC final approval for approximately $21.7 million of Mobility Fund support and in June 2014, approximately $2.4 million of Tribal Mobility fund support to its wholesale wireless business (collectively the “Mobility Funds”) to expand voice and broadband networks in certain geographic areas in order to offer either 3G or 4G coverage. As part of the receipt of the Mobility Funds, the Company committed to comply with certain additional FCC construction and other requirements. A portion of these funds will be used to offset network capital costs and a portion is used to offset the costs of supporting the networks for a period of five years. In connection with the Company’s application for the Mobility Funds, the Company has posted approximately $11.0 million in letters of credit to the Universal Service Administrative Company (“USAC”) to secure these obligations. If the Company fails to comply with any of the terms and conditions upon which the Mobility Funds were granted, or if it loses eligibility for the Mobility Funds, USAC will be entitled to draw the entire amount of the letter of credit applicable to the affected project plus penalties and may disqualify the Company from the receipt of additional Mobility Fund support. As of June 30, 2014, all of the letters of credit remain outstanding and no amounts have been drawn thereon. | |
The Company began the construction of its Mobility Funds projects during the third quarter of 2013 and its results are included in the Company’s “U.S. Wireless” segment. As of June 30, 2014, the Company has received approximately $7.3 million in Mobility Funds. Of these funds, $1.4 million was recorded as an offset to the cost of the property, plant, and equipment associated with these projects and, consequentially, a reduction of future depreciation expense and $6.1 million was recorded as a liability to reduce future operating expenses. The balance sheet presentation is based on the timing of the expected recognition of the funds and accordingly, $2.3 million is recorded within other current liabilities while the remaining $3.8 million is recorded within other long-term liabilities. | |
EQUITY
EQUITY | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
EQUITY | ' | |||||||||||||||||||
EQUITY | ' | |||||||||||||||||||
9. EQUITY | ||||||||||||||||||||
Total equity was as follows (in thousands): | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Atlantic Tele- | Non-Controlling | Total Equity | Atlantic Tele- | Non-Controlling | Total | |||||||||||||||
Network, Inc. | Interests | Network, Inc. | Interests | Equity | ||||||||||||||||
Equity, beginning of period | $ | 334,146 | $ | 60,094 | $ | 394,240 | $ | 643,330 | $ | 56,525 | $ | 699,855 | ||||||||
Stock-based compensation | 2,071 | — | 2,071 | 2,379 | — | 2,379 | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | 17,633 | 3,706 | 21,339 | 19,354 | 5,368 | 24,722 | ||||||||||||||
Other comprehensive income-Gain on interest rate swap (net of tax) | 3,265 | — | 3,265 | — | — | — | ||||||||||||||
Total comprehensive income | 20,898 | 3,706 | 24,604 | 19,354 | 5,368 | 24,722 | ||||||||||||||
Issuance of common stock upon exercise of stock options | 3,955 | — | 3,955 | 1,109 | — | 1,109 | ||||||||||||||
Dividends declared on common stock | (7,884 | ) | — | (7,884 | ) | (8,605 | ) | — | (8,605 | ) | ||||||||||
Distributions to non-controlling interests | — | (3,096 | ) | (3,096 | ) | — | (6,081 | ) | (6,081 | ) | ||||||||||
Investments made by non-controlling interests | — | 135 | 135 | — | — | — | ||||||||||||||
Purchase of treasury stock | (3,640 | ) | — | (3,640 | ) | (1,778 | ) | — | (1,778 | ) | ||||||||||
Equity, end of period | $ | 349,546 | $ | 60,839 | $ | 410,385 | $ | 655,789 | $ | 55,812 | $ | 711,601 | ||||||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
NET INCOME PER SHARE | ' | |||||||||
NET INCOME PER SHARE | ' | |||||||||
10. NET INCOME PER SHARE | ||||||||||
For the three and six months ended June 30, 2013 and 2014, outstanding stock options were the only potentially dilutive securities. The reconciliation from basic to diluted weighted average common shares outstanding is as follows (in thousands): | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2013 | 2014 | 2013 | 2014 | |||||||
Basic weighted-average common shares outstanding | 15,706 | 15,915 | 15,647 | 15,873 | ||||||
Stock options | 115 | 108 | 109 | 113 | ||||||
Diluted weighted-average common shares outstanding | 15,821 | 16,023 | 15,756 | 15,986 | ||||||
The above calculation for the three months ended June 30, 2013 does not include 60,000 shares related to certain stock options because the effects of such options were anti-dilutive. For the six months ended June 30, 2014 the calculation does not include 153,000 shares related to certain stock options because the effect of such options was anti-dilutive. | ||||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||
11. SEGMENT REPORTING | ||||||||||||||||||||
The Company has four reportable segments for separate disclosure in accordance with the FASB’s authoritative guidance on disclosures about segments of an enterprise. Those four segments are: i) U.S. Wireless, which generates all of its revenues in and has all of its assets located in the United States, ii) International Integrated Telephony, which generates all of its revenues in and has all of its assets located in Guyana, iii) Island Wireless, which generates a majority of its revenues in, and has a majority of its assets located in, Bermuda and which also generates revenues in and has assets located in the U.S. Virgin Islands, Aruba and Turks and Caicos and iv) U.S. Wireline, which generates all of its revenues in and has all of its assets located in the United States. The operating segments are managed separately because each offers different services and serves different markets. | ||||||||||||||||||||
The following tables provide information for each operating segment (in thousands): | ||||||||||||||||||||
For the Three Months Ended June 30, 2013 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 26,589 | $ | — | $ | — | $ | — | $ | — | $ | 26,589 | ||||||||
International wireless | — | 6,530 | 15,307 | — | — | 21,837 | ||||||||||||||
Wireline | 152 | 15,170 | — | 5,555 | — | 20,877 | ||||||||||||||
Equipment and other | 103 | 508 | 1,655 | 57 | — | 2,323 | ||||||||||||||
Total revenue | 26,844 | 22,208 | 16,962 | 5,612 | — | 71,626 | ||||||||||||||
Depreciation and amortization | 3,997 | 4,535 | 2,560 | 794 | 309 | 12,195 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 1,166 | 1,166 | ||||||||||||||
Operating income (loss) | 12,934 | 6,235 | 2,301 | (124 | ) | (5,439 | ) | 15,907 | ||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 47,802 | $ | — | $ | — | $ | — | $ | — | $ | 47,802 | ||||||||
International wireless | — | 13,284 | 29,983 | — | — | 43,267 | ||||||||||||||
Wireline | 305 | 30,853 | — | 10,283 | — | 41,441 | ||||||||||||||
Equipment and other | 205 | 763 | 2,873 | 107 | — | 3,948 | ||||||||||||||
Total revenue | 48,312 | 44,900 | 32,856 | 10,390 | — | 136,458 | ||||||||||||||
Depreciation and amortization | 8,080 | 8,925 | 5,155 | 1,436 | 587 | 24,183 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 1,972 | 1,972 | ||||||||||||||
Operating income (loss) | 22,179 | 12,568 | 3,935 | (532 | ) | (10,164 | ) | 27,986 | ||||||||||||
For the Three Months Ended June 30, 2014 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 37,456 | $ | — | $ | — | $ | — | $ | — | $ | 37,456 | ||||||||
International wireless | — | 6,758 | 15,664 | — | — | 22,422 | ||||||||||||||
Wireline | 152 | 14,445 | — | 6,686 | — | 21,283 | ||||||||||||||
Equipment and other | 207 | 194 | 1,641 | 66 | — | 2,108 | ||||||||||||||
Total revenue | 37,815 | 21,397 | 17,305 | 6,752 | — | 83,269 | ||||||||||||||
Depreciation and amortization | 3,453 | 4,400 | 2,607 | 1,186 | 1,284 | 12,930 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 1,323 | 1,323 | ||||||||||||||
Operating income (loss) | 22,651 | 4,594 | 2,552 | (966 | ) | (7,224 | ) | 21,607 | ||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 65,848 | $ | — | $ | — | $ | — | $ | — | $ | 65,848 | ||||||||
International wireless | — | 13,655 | 31,915 | — | — | 45,570 | ||||||||||||||
Wireline | 305 | 29,151 | — | 13,357 | — | 42,812 | ||||||||||||||
Equipment and other | 386 | 389 | 3,313 | 125 | — | 4,212 | ||||||||||||||
Total revenue | 66,538 | 43,195 | 35,228 | 13,482 | — | 158,443 | ||||||||||||||
Depreciation and amortization | 6,756 | 8,713 | 5,215 | 2,327 | 1,899 | 24,910 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 2,379 | 2,379 | ||||||||||||||
Operating income (loss) | 36,239 | 10,229 | 5,978 | (2,040 | ) | (12,480 | ) | 37,855 | ||||||||||||
Segment Assets | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Net fixed assets | $ | 73,592 | $ | 118,917 | $ | 29,310 | $ | 26,082 | $ | 6,731 | $ | 254,632 | ||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | 45,077 | ||||||||||||||
Total assets | 151,094 | -1 | 197,903 | 74,427 | 45,351 | 390,944 | 859,719 | |||||||||||||
June 30, 2014: | ||||||||||||||||||||
Net fixed assets | $ | 72,244 | $ | 114,557 | $ | 26,450 | $ | 25,987 | $ | 13,778 | $ | 253,027 | ||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | 45,077 | ||||||||||||||
Total assets | 244,308 | -1 | 200,209 | 76,897 | 43,034 | 266,314 | 830,764 | |||||||||||||
(1) Includes $4,748 and $169 of assets associated with our discontinued operations as of December 31, 2013 and June 30, 2014, respectively. | ||||||||||||||||||||
Capital Expenditures | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2013 | $ | 23,357 | $ | 6,116 | $ | 1,911 | $ | 6,689 | $ | 1,623 | $ | 39,696 | ||||||||
2014 | $ | 14,845 | $ | 6,072 | $ | 1,958 | $ | 976 | $ | 1,253 | $ | 25,104 | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
12. COMMITMENTS AND CONTINGENCIES | |
Regulatory and Litigation Matters | |
The Company and its subsidiaries are subject to certain regulatory and legal proceedings and other claims arising in the ordinary course of business, some of which involve claims for damages and taxes that are substantial in amount. The Company believes that, except for the items discussed below and in our Annual Report on Form 10-K for the year ended December 31, 2013, for which the Company is currently unable to predict the final outcome, the disposition of proceedings currently pending will not have a material adverse effect on the Company’s financial position or results of operations. | |
On May 8, 2009, Digicel filed a lawsuit in Guyana challenging the legality of GT&T’s exclusive license rights under Guyana’s constitution. Digicel initially filed this lawsuit against the Attorney General of Guyana in the High Court. On May 13, 2009, GT&T petitioned to intervene in the suit in order to oppose Digicel’s claims and that petition was granted on May 18, 2009. GT&T filed an answer to the charge on June 22, 2009 and the case is pending. The Company believes that any legal challenge to GT&T’s exclusive license rights granted in 1990 is without merit and the Company is vigorously defending against the legal challenge. | |
In Bermuda, the Regulatory Authority continued its implementation of the Electronic Communications Act of 2011, which allows communications service providers to enter new lines of business and introduces competition in the sector. As the government of Bermuda continues to reform the local telecommunications market it is possible that new or amended regulations may establish regulatory and other fees that could increase our regulatory costs. We cannot predict when or if these proposals will be adopted, or, if adopted, the impact that their implementation will have on our Island Wireless Segment. | |
The term of the Company’s telecommunications license to operate in Aruba expired on January 15, 2014. The government of Aruba informed the Company earlier in January 2014 that a renewed license would be issued only upon payment by the Company of a fee in the amount of approximately $4.0 million. In addition, the government of Aruba demanded that the Company pay overdue spectrum invoices in the amount of approximately $2.0 million no later than July 31, 2014. The Company continues to contest the assessment of these fees, and continues to operate actively seek a resolution with the Aruba government with respect to the fees, if any, to be paid in relation to a renewed license and the assessed spectrum fees. | |
ORGANIZATION_AND_BUSINESS_OPER1
ORGANIZATION AND BUSINESS OPERATIONS (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
ORGANIZATION AND BUSINESS OPERATIONS | ' | ||||||
Schedule of the operating activities of the Company's principal subsidiaries, the segments in which the Company reports its revenue and markets served | ' | ||||||
Services | Segment | Markets | Tradenames | ||||
Wireless | U.S. Wireless | United States | Commnet, Choice | ||||
Island Wireless | Aruba, Bermuda, Turks and Caicos, U.S. Virgin Islands | Mio, CellOne, Islandcom, Choice | |||||
International Integrated Telephony | Guyana | Cellink | |||||
Wireline | International Integrated Telephony | Guyana | GT&T, eMagine | ||||
U.S. Wireline | United States (New England and New York State) | Sovernet, ION, EssexTel | |||||
DISCONTINUED_OPERATIONS_SALE_O1
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | ' | |||||||||||||
Schedule of revenues and income from discontinued operations | ' | |||||||||||||
Revenues and income from discontinued operations related to the Alltel business for the three months and six months ended June 30, 2013 and 2014 were as follows (in thousands): | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Revenue from discontinued operations | $ | 103,446 | $ | — | $ | 211,483 | $ | — | ||||||
Income from discontinued operations, net of tax expense of $1.8 million and $4.3 million for the three and six months ended June 30, 2013 respectively | 3,091 | — | 7,125 | — | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
Schedule of assets and liabilities of the entity measured at fair value on a recurring basis | ' | ||||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2013 and June 30, 2014 are summarized as follows (in thousands): | |||||||||||
December 31, 2013 | |||||||||||
Description | Quoted Prices in | Significant Other | Total | ||||||||
Active Markets | Observable Inputs | ||||||||||
(Level 1) | (Level 2) | ||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | |||||
Money market funds | $ | 2,244 | $ | — | $ | 2,244 | |||||
Total assets measured at fair value | $ | 2,244 | $ | 363 | $ | 2,607 | |||||
June 30, 2014 | |||||||||||
Description | Quoted Prices in | Significant Other | Total | ||||||||
Active Markets | Observable Inputs | ||||||||||
(Level 1) | (Level 2) | ||||||||||
Certificate of deposit | $ | — | $ | 363 | $ | 363 | |||||
Money market funds | $ | 2,039 | $ | — | $ | 2,039 | |||||
Total assets measured at fair value | $ | 2,039 | $ | 363 | $ | 2,402 | |||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||
Schedule of effect of the entity's derivative financial instruments on the consolidated income statements | ' | |||||||||||
The table below presents the effect of the Company’s derivative financial instruments on the consolidated income statements for the three and six months ended June 30, 2013 and 2014 (in thousands): | ||||||||||||
Three Months | Derivative in Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||
Ended | Hedging Relationships | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | ||||||||
June 30, | in Other | from Accumulated | from Accumulated | |||||||||
Comprehensive | Other | Other | ||||||||||
Income on | Comprehensive | Comprehensive | ||||||||||
Derivative | Income into Income | Income into | ||||||||||
(Effective Portion) | (Effective Portion) | Income | ||||||||||
(Effective Portion) | ||||||||||||
2013 | Interest Rate Swap | $ | 4,373 | Interest expense | $ | 1,039 | ||||||
2014 | Interest Rate Swap | $ | — | Interest expense | $ | — | ||||||
Six Months | Derivative in Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||
Ended | Hedging Relationships | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | ||||||||
June 30, | in Other | from Accumulated | from Accumulated | |||||||||
Comprehensive | Other | Other | ||||||||||
Income on | Comprehensive | Comprehensive | ||||||||||
Derivative | Income into Income | Income into | ||||||||||
(Effective Portion) | (Effective Portion) | Income | ||||||||||
(Effective Portion) | ||||||||||||
2013 | Interest Rate Swap | $ | 5,441 | Interest expense | $ | (2,022 | ) | |||||
2014 | Interest Rate Swap | $ | — | Interest expense | $ | — | ||||||
EQUITY_Tables
EQUITY (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
EQUITY | ' | |||||||||||||||||||
Schedule of total equity | ' | |||||||||||||||||||
Total equity was as follows (in thousands): | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Atlantic Tele- | Non-Controlling | Total Equity | Atlantic Tele- | Non-Controlling | Total | |||||||||||||||
Network, Inc. | Interests | Network, Inc. | Interests | Equity | ||||||||||||||||
Equity, beginning of period | $ | 334,146 | $ | 60,094 | $ | 394,240 | $ | 643,330 | $ | 56,525 | $ | 699,855 | ||||||||
Stock-based compensation | 2,071 | — | 2,071 | 2,379 | — | 2,379 | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | 17,633 | 3,706 | 21,339 | 19,354 | 5,368 | 24,722 | ||||||||||||||
Other comprehensive income-Gain on interest rate swap (net of tax) | 3,265 | — | 3,265 | — | — | — | ||||||||||||||
Total comprehensive income | 20,898 | 3,706 | 24,604 | 19,354 | 5,368 | 24,722 | ||||||||||||||
Issuance of common stock upon exercise of stock options | 3,955 | — | 3,955 | 1,109 | — | 1,109 | ||||||||||||||
Dividends declared on common stock | (7,884 | ) | — | (7,884 | ) | (8,605 | ) | — | (8,605 | ) | ||||||||||
Distributions to non-controlling interests | — | (3,096 | ) | (3,096 | ) | — | (6,081 | ) | (6,081 | ) | ||||||||||
Investments made by non-controlling interests | — | 135 | 135 | — | — | — | ||||||||||||||
Purchase of treasury stock | (3,640 | ) | — | (3,640 | ) | (1,778 | ) | — | (1,778 | ) | ||||||||||
Equity, end of period | $ | 349,546 | $ | 60,839 | $ | 410,385 | $ | 655,789 | $ | 55,812 | $ | 711,601 | ||||||||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
NET INCOME PER SHARE | ' | |||||||||
Schedule of reconciliation from basic to diluted weighted average common shares outstanding | ' | |||||||||
The reconciliation from basic to diluted weighted average common shares outstanding is as follows (in thousands): | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | June 30, | |||||||||
2013 | 2014 | 2013 | 2014 | |||||||
Basic weighted-average common shares outstanding | 15,706 | 15,915 | 15,647 | 15,873 | ||||||
Stock options | 115 | 108 | 109 | 113 | ||||||
Diluted weighted-average common shares outstanding | 15,821 | 16,023 | 15,756 | 15,986 | ||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||
Schedule of information for each operating segment | ' | |||||||||||||||||||
The following tables provide information for each operating segment (in thousands): | ||||||||||||||||||||
For the Three Months Ended June 30, 2013 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 26,589 | $ | — | $ | — | $ | — | $ | — | $ | 26,589 | ||||||||
International wireless | — | 6,530 | 15,307 | — | — | 21,837 | ||||||||||||||
Wireline | 152 | 15,170 | — | 5,555 | — | 20,877 | ||||||||||||||
Equipment and other | 103 | 508 | 1,655 | 57 | — | 2,323 | ||||||||||||||
Total revenue | 26,844 | 22,208 | 16,962 | 5,612 | — | 71,626 | ||||||||||||||
Depreciation and amortization | 3,997 | 4,535 | 2,560 | 794 | 309 | 12,195 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 1,166 | 1,166 | ||||||||||||||
Operating income (loss) | 12,934 | 6,235 | 2,301 | (124 | ) | (5,439 | ) | 15,907 | ||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 47,802 | $ | — | $ | — | $ | — | $ | — | $ | 47,802 | ||||||||
International wireless | — | 13,284 | 29,983 | — | — | 43,267 | ||||||||||||||
Wireline | 305 | 30,853 | — | 10,283 | — | 41,441 | ||||||||||||||
Equipment and other | 205 | 763 | 2,873 | 107 | — | 3,948 | ||||||||||||||
Total revenue | 48,312 | 44,900 | 32,856 | 10,390 | — | 136,458 | ||||||||||||||
Depreciation and amortization | 8,080 | 8,925 | 5,155 | 1,436 | 587 | 24,183 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 1,972 | 1,972 | ||||||||||||||
Operating income (loss) | 22,179 | 12,568 | 3,935 | (532 | ) | (10,164 | ) | 27,986 | ||||||||||||
For the Three Months Ended June 30, 2014 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 37,456 | $ | — | $ | — | $ | — | $ | — | $ | 37,456 | ||||||||
International wireless | — | 6,758 | 15,664 | — | — | 22,422 | ||||||||||||||
Wireline | 152 | 14,445 | — | 6,686 | — | 21,283 | ||||||||||||||
Equipment and other | 207 | 194 | 1,641 | 66 | — | 2,108 | ||||||||||||||
Total revenue | 37,815 | 21,397 | 17,305 | 6,752 | — | 83,269 | ||||||||||||||
Depreciation and amortization | 3,453 | 4,400 | 2,607 | 1,186 | 1,284 | 12,930 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 1,323 | 1,323 | ||||||||||||||
Operating income (loss) | 22,651 | 4,594 | 2,552 | (966 | ) | (7,224 | ) | 21,607 | ||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
U.S. wireless | $ | 65,848 | $ | — | $ | — | $ | — | $ | — | $ | 65,848 | ||||||||
International wireless | — | 13,655 | 31,915 | — | — | 45,570 | ||||||||||||||
Wireline | 305 | 29,151 | — | 13,357 | — | 42,812 | ||||||||||||||
Equipment and other | 386 | 389 | 3,313 | 125 | — | 4,212 | ||||||||||||||
Total revenue | 66,538 | 43,195 | 35,228 | 13,482 | — | 158,443 | ||||||||||||||
Depreciation and amortization | 6,756 | 8,713 | 5,215 | 2,327 | 1,899 | 24,910 | ||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 2,379 | 2,379 | ||||||||||||||
Operating income (loss) | 36,239 | 10,229 | 5,978 | (2,040 | ) | (12,480 | ) | 37,855 | ||||||||||||
Segment Assets | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Net fixed assets | $ | 73,592 | $ | 118,917 | $ | 29,310 | $ | 26,082 | $ | 6,731 | $ | 254,632 | ||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | 45,077 | ||||||||||||||
Total assets | 151,094 | -1 | 197,903 | 74,427 | 45,351 | 390,944 | 859,719 | |||||||||||||
June 30, 2014: | ||||||||||||||||||||
Net fixed assets | $ | 72,244 | $ | 114,557 | $ | 26,450 | $ | 25,987 | $ | 13,778 | $ | 253,027 | ||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | 45,077 | ||||||||||||||
Total assets | 244,308 | -1 | 200,209 | 76,897 | 43,034 | 266,314 | 830,764 | |||||||||||||
(1) Includes $4,748 and $169 of assets associated with our discontinued operations as of December 31, 2013 and June 30, 2014, respectively. | ||||||||||||||||||||
Capital Expenditures | ||||||||||||||||||||
U.S. Wireless | International | Island | U.S. | Reconciling | Consolidated | |||||||||||||||
Integrated | Wireless | Wireline | Items | |||||||||||||||||
Telephony | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2013 | $ | 23,357 | $ | 6,116 | $ | 1,911 | $ | 6,689 | $ | 1,623 | $ | 39,696 | ||||||||
2014 | $ | 14,845 | $ | 6,072 | $ | 1,958 | $ | 976 | $ | 1,253 | $ | 25,104 | ||||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (Reclassifications, General and administrative expense, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Reclassifications | General and administrative expense | ' |
Reclassifications | ' |
Prior period reclassifications | $0.70 |
BASIS_OF_PRESENTATION_Details_
BASIS OF PRESENTATION (Details 2) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Income tax | ' | ' | ' | ' | ' |
Statutory federal income tax rate (as a percent) | ' | ' | ' | ' | 35.00% |
Effective tax rate (as a percent) | 33.90% | 36.90% | 34.30% | 38.30% | ' |
Guyana | ' | ' | ' | ' | ' |
Income tax | ' | ' | ' | ' | ' |
Statutory federal income tax rate (as a percent) | ' | ' | ' | ' | 45.00% |
DISCONTINUED_OPERATIONS_SALE_O2
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 20, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2015 | Sep. 30, 2014 | |
Alltel Sale | Alltel Sale | Alltel Sale | Alltel Sale | Alltel Sale | Alltel Sale | Alltel Sale | |||||
AT&T Mobility | AT&T Mobility | AT&T Mobility | AT&T Mobility | AT&T Mobility | AT&T Mobility | AT&T Mobility | |||||
Subsequent event | Subsequent event | ||||||||||
SALE OF U.S. RETAIL WIRELESS BUSINESS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds | ' | ' | ' | ' | $780,000,000 | ' | ' | ' | ' | ' | ' |
Working capital adjustments | ' | ' | ' | ' | 16,800,000 | ' | ' | ' | ' | ' | ' |
Total cash proceeds including working capital adjustments | ' | ' | ' | ' | 796,800,000 | ' | ' | ' | ' | ' | ' |
Cash held in escrow | ' | ' | ' | ' | 78,000,000 | ' | ' | ' | ' | ' | ' |
First release of escrowed cash | ' | ' | ' | ' | ' | 19,500,000 | ' | ' | ' | ' | ' |
Restricted cash | ' | ' | 58,794,000 | 39,000,000 | ' | ' | ' | 58,500,000 | ' | ' | ' |
Second release of escrowed cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,500,000 |
Third release of escrowed cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | ' |
Minority shareholders' interests in sold operations | ' | ' | ' | ' | ' | ' | ' | 7,300,000 | ' | ' | ' |
Revenues and income from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from discontinued operations | ' | ' | ' | ' | ' | ' | 103,446,000 | ' | 211,483,000 | ' | ' |
Income from discontinued operations, net of tax expense | 3,091,000 | 7,125,000 | ' | ' | ' | ' | 3,091,000 | ' | 7,125,000 | ' | ' |
Income from discontinued operations, tax expense | ' | ' | ' | ' | ' | ' | $1,800,000 | ' | $4,300,000 | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Recurring basis, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Quoted Prices in Active Markets (Level 1) | ' | ' |
Fair value measurements | ' | ' |
Money market funds | $2,039 | $2,244 |
Total assets measured at fair value | 2,039 | 2,244 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair value measurements | ' | ' |
Certificates of deposit | 363 | 363 |
Total assets measured at fair value | 363 | 363 |
Total | ' | ' |
Fair value measurements | ' | ' |
Certificates of deposit | 363 | 363 |
Money market funds | 2,039 | 2,244 |
Total assets measured at fair value | $2,402 | $2,607 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 1 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | 31-May-11 | Sep. 20, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | 18-May-12 | Sep. 20, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 2-May-11 |
Bermuda wireless operations | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Term loans | Term loans | Term loans | Term loans | Term loans | Term loans | Term loans | Revolver loan | Revolver loan | Revolver loan | Revolver loan | Revolver loan | Revolver loan | Revolver loan | Revolver loan | Revolver loan | Swingline sub-facility | Swingline sub-facility | Swingline sub-facility | Letter of credit sub-facility | Note payable - other | |
One-week LIBOR | One-week LIBOR | One-month LIBOR | One-month LIBOR | Prime Rate | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Minimum | Minimum | Maximum | Maximum | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | M3 Wireless, Ltd. | ||
item | LIBOR | Base rate | Minimum | Minimum | Maximum | Maximum | LIBOR | Base rate | LIBOR | Base rate | LIBOR | Base rate | Minimum | Maximum | Minimum | Maximum | Keytech Ltd. | ||||||||||
LIBOR | Base rate | LIBOR | Base rate | Base rate | Base rate | ||||||||||||||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100 | ' | ' | ' | ' | $10 | ' | ' | $55 | ' |
Number of term loans | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | 'one-week LIBOR | ' | 'one-month LIBOR | 'Prime Rate | ' | 'LIBOR | 'Base Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Base Rate | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (as a percent) | ' | 1.50% | ' | 1.50% | ' | ' | ' | ' | ' | 2.00% | 1.00% | 4.00% | 3.00% | 2.00% | 1.00% | 3.50% | 2.50% | ' | ' | ' | ' | ' | ' | 0.50% | 2.00% | ' | ' |
Commitment fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 0.50% | ' | ' | ' | ' | ' |
Term loan assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7 |
Ownership interest held by minority shareholder (as a percent) | 42.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) (Interest Rate Swaps, Derivative in Cash Flow Hedging Relationships, USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Interest Rate Swaps | Derivative in Cash Flow Hedging Relationships | ' | ' |
Derivative instruments and hedging activities | ' | ' |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $4,373 | $5,441 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | $1,039 | ($2,022) |
GOVERNMENT_GRANTS_Details
GOVERNMENT GRANTS (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
item | |
Upstate New York and parts of Pennsylvania and Vermont | ' |
GOVERNMENT GRANTS | ' |
Capital expenditures | $35.80 |
Federal stimulus grant | 27.5 |
Number of new segments of fiber-optic, middle mile broadband infrastructure built | 10 |
Navajo Nation across Arizona, New Mexico and Utah | ' |
GOVERNMENT GRANTS | ' |
Capital expenditures | 7.6 |
Federal stimulus grant | 5.3 |
Vermont | ' |
GOVERNMENT GRANTS | ' |
Capital expenditures | 45.4 |
Federal stimulus grant | 31.8 |
Additional capital expenditures to be incurred | 3 |
Expected amount of federal stimulus grants | $2.10 |
Vermont | Minimum | ' |
GOVERNMENT GRANTS | ' |
Number of community anchor institutions to whom broadband and transport services are provided | 340 |
GOVERNMENT_GRANTS_Details_2
GOVERNMENT GRANTS (Details 2) (USD $) | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Letters of credit | Mobility Funds | Mobility Funds | Mobility Funds | Mobility Funds | Mobility Funds | Tribal Mobility Fund | ||
U.S. Wireless | U.S. Wireless | U.S. Wireless | U.S. Wireless | |||||
Liability | Other current liabilities | Other long-term liabilities | ||||||
GOVERNMENT GRANTS | ' | ' | ' | ' | ' | ' | ' | ' |
Mobility Funds approved by FCC | ' | ' | $21.70 | ' | ' | ' | ' | $2.40 |
Period over which a portion of the Mobility Funds is used to offset the costs of supporting the networks | '5 years | ' | ' | ' | ' | ' | ' | ' |
Letters of credit posted to USAC | ' | 11 | ' | ' | ' | ' | ' | ' |
Amount of letters of credit drawn | ' | 0 | ' | ' | ' | ' | ' | ' |
Mobility Funds received | ' | ' | ' | 7.3 | 6.1 | 2.3 | 3.8 | ' |
Grant funds used to offset fixed asset related costs | ' | ' | ' | $1.40 | ' | ' | ' | ' |
EQUITY_Details
EQUITY (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stockholders' equity | ' | ' | ' | ' |
Equity, beginning of period | ' | ' | $699,855 | $394,240 |
Stock-based compensation | ' | ' | 2,379 | 2,071 |
Comprehensive income: | ' | ' | ' | ' |
Net income | 14,322 | 11,421 | 24,722 | 21,339 |
Other comprehensive income | ' | ' | ' | ' |
Gain on interest rate swap (net of tax) | ' | ' | ' | 3,265 |
Comprehensive income | ' | ' | 24,722 | 24,604 |
Issuance of common stock upon exercise of stock options | ' | ' | 1,109 | 3,955 |
Dividends declared on common stock | ' | ' | -8,605 | -7,884 |
Distributions to non-controlling interests | ' | ' | -6,081 | -3,096 |
Investments made by non-controlling interests | ' | ' | ' | 135 |
Purchase of treasury stock | ' | ' | -1,778 | -3,640 |
Equity, end of period | 711,601 | 410,385 | 711,601 | 410,385 |
Atlantic Tele-Network, Inc. | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
Equity, beginning of period | ' | ' | 643,330 | 334,146 |
Stock-based compensation | ' | ' | 2,379 | 2,071 |
Comprehensive income: | ' | ' | ' | ' |
Net income | ' | ' | 19,354 | 17,633 |
Other comprehensive income | ' | ' | ' | ' |
Gain on interest rate swap (net of tax) | ' | ' | ' | 3,265 |
Comprehensive income | ' | ' | 19,354 | 20,898 |
Issuance of common stock upon exercise of stock options | ' | ' | 1,109 | 3,955 |
Dividends declared on common stock | ' | ' | -8,605 | -7,884 |
Purchase of treasury stock | ' | ' | -1,778 | -3,640 |
Equity, end of period | 655,789 | 349,546 | 655,789 | 349,546 |
Non-Controlling Interests | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
Equity, beginning of period | ' | ' | 56,525 | 60,094 |
Comprehensive income: | ' | ' | ' | ' |
Net income | ' | ' | 5,368 | 3,706 |
Other comprehensive income | ' | ' | ' | ' |
Comprehensive income | ' | ' | 5,368 | 3,706 |
Distributions to non-controlling interests | ' | ' | -6,081 | -3,096 |
Investments made by non-controlling interests | ' | ' | ' | 135 |
Equity, end of period | $55,812 | $60,839 | $55,812 | $60,839 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reconciliation from basic to diluted weighted average common shares outstanding | ' | ' | ' | ' |
Basic weighted-average common shares outstanding | 15,915,000 | 15,706,000 | 15,873,000 | 15,647,000 |
Stock options (in shares) | 108,000 | 115,000 | 113,000 | 109,000 |
Diluted weighted-average common shares outstanding | 16,023,000 | 15,821,000 | 15,986,000 | 15,756,000 |
Stock options | ' | ' | ' | ' |
Anti-dilutive common shares not included for computation of earnings per share | ' | ' | ' | ' |
Anti-dilutive potential shares excluded from the computation of diluted weighted average shares outstanding (in shares) | ' | 60,000 | 153,000 | ' |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
item | |||||
SEGMENT REPORTING | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 4 | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | $83,269 | $71,626 | $158,443 | $136,458 | ' |
Depreciation and amortization | 12,930 | 12,195 | 24,910 | 24,183 | ' |
Non-cash stock-based compensation | 1,323 | 1,166 | 2,379 | 1,972 | ' |
Operating income (loss) | 21,607 | 15,907 | 37,855 | 27,986 | ' |
Segment Assets | ' | ' | ' | ' | ' |
Net fixed assets | 253,027 | ' | 253,027 | ' | 254,632 |
Goodwill | 45,077 | ' | 45,077 | ' | 45,077 |
Total assets | 830,764 | ' | 830,764 | ' | 859,719 |
Capital Expenditures | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | 25,104 | 39,696 | ' |
U.S. wireless | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 37,456 | 26,589 | 65,848 | 47,802 | ' |
International wireless | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 22,422 | 21,837 | 45,570 | 43,267 | ' |
Wireline | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 21,283 | 20,877 | 42,813 | 41,441 | ' |
Equipment and other | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 2,108 | 2,323 | 4,212 | 3,948 | ' |
Reconciling Items | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Depreciation and amortization | 1,284 | 309 | 1,899 | 587 | ' |
Non-cash stock-based compensation | 1,323 | 1,166 | 2,379 | 1,972 | ' |
Operating income (loss) | -7,224 | -5,439 | -12,480 | -10,164 | ' |
Segment Assets | ' | ' | ' | ' | ' |
Net fixed assets | 13,778 | ' | 13,778 | ' | 6,731 |
Total assets | 266,314 | ' | 266,314 | ' | 390,944 |
Capital Expenditures | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | 1,253 | 1,623 | ' |
U.S. Wireless | Discontinued operations | ' | ' | ' | ' | ' |
Segment Assets | ' | ' | ' | ' | ' |
Total assets | 169 | ' | 169 | ' | 4,748 |
U.S. Wireless | Operating segments | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 37,815 | 26,844 | 66,538 | 48,312 | ' |
Depreciation and amortization | 3,453 | 3,997 | 6,756 | 8,080 | ' |
Operating income (loss) | 22,651 | 12,934 | 36,239 | 22,179 | ' |
Segment Assets | ' | ' | ' | ' | ' |
Net fixed assets | 72,244 | ' | 72,244 | ' | 73,592 |
Goodwill | 32,148 | ' | 32,148 | ' | 32,148 |
Total assets | 244,308 | ' | 244,308 | ' | 151,094 |
Capital Expenditures | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | 14,845 | 23,357 | ' |
U.S. Wireless | Operating segments | U.S. wireless | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 37,456 | 26,589 | 65,848 | 47,802 | ' |
U.S. Wireless | Operating segments | Wireline | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 152 | 152 | 305 | 305 | ' |
U.S. Wireless | Operating segments | Equipment and other | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 207 | 103 | 386 | 205 | ' |
International Integrated Telephony | Operating segments | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 21,397 | 22,208 | 43,195 | 44,900 | ' |
Depreciation and amortization | 4,400 | 4,535 | 8,713 | 8,925 | ' |
Operating income (loss) | 4,594 | 6,235 | 10,229 | 12,568 | ' |
Segment Assets | ' | ' | ' | ' | ' |
Net fixed assets | 114,557 | ' | 114,557 | ' | 118,917 |
Total assets | 200,209 | ' | 200,209 | ' | 197,903 |
Capital Expenditures | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | 6,072 | 6,116 | ' |
International Integrated Telephony | Operating segments | International wireless | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 6,758 | 6,530 | 13,655 | 13,284 | ' |
International Integrated Telephony | Operating segments | Wireline | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 14,445 | 15,170 | 29,151 | 30,853 | ' |
International Integrated Telephony | Operating segments | Equipment and other | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 194 | 508 | 389 | 763 | ' |
Island Wireless | Operating segments | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 17,305 | 16,962 | 35,228 | 32,856 | ' |
Depreciation and amortization | 2,607 | 2,560 | 5,215 | 5,155 | ' |
Operating income (loss) | 2,552 | 2,301 | 5,978 | 3,935 | ' |
Segment Assets | ' | ' | ' | ' | ' |
Net fixed assets | 26,450 | ' | 26,450 | ' | 29,310 |
Goodwill | 5,438 | ' | 5,438 | ' | 5,438 |
Total assets | 76,897 | ' | 76,897 | ' | 74,427 |
Capital Expenditures | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | 1,958 | 1,911 | ' |
Island Wireless | Operating segments | International wireless | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 15,664 | 15,307 | 31,915 | 29,983 | ' |
Island Wireless | Operating segments | Equipment and other | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 1,641 | 1,655 | 3,313 | 2,873 | ' |
U.S. Wireline | Operating segments | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 6,752 | 5,612 | 13,482 | 10,390 | ' |
Depreciation and amortization | 1,186 | 794 | 2,327 | 1,436 | ' |
Operating income (loss) | -966 | -124 | -2,040 | -532 | ' |
Segment Assets | ' | ' | ' | ' | ' |
Net fixed assets | 25,987 | ' | 25,987 | ' | 26,082 |
Goodwill | 7,491 | ' | 7,491 | ' | 7,491 |
Total assets | 43,034 | ' | 43,034 | ' | 45,351 |
Capital Expenditures | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | 976 | 6,689 | ' |
U.S. Wireline | Operating segments | Wireline | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | 6,686 | 5,555 | 13,357 | 10,283 | ' |
U.S. Wireline | Operating segments | Equipment and other | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' |
Revenue | $66 | $57 | $125 | $107 | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2014 | Jan. 02, 2014 |
Commitments and contingencies | ' | ' |
Renewal fee of telecommunications license | ' | $4 |
Amount of overdue spectrum fees demanded by the government of Aruba be paid by July 31, 2014 | $2 | ' |