Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-12593 | |
Entity Registrant Name | ATN INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-0728886 | |
Entity Address, Address Line One | 500 Cummings Center | |
Entity Address, City or Town | Beverly | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01915 | |
City Area Code | 978 | |
Local Phone Number | 619-1300 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | ATNI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,921,222 | |
Entity Central Index Key | 0000879585 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 91,259 | $ 103,925 |
Restricted cash | 1,072 | 1,072 |
Accounts receivable, net of allowances for credit losses of $13.0 million and $12.1 million, respectively | 41,600 | 44,152 |
Customer receivable | 2,365 | 1,227 |
Inventory, materials and supplies | 6,185 | 5,504 |
Prepayments and other current assets | 52,796 | 49,450 |
Assets held for sale | 34,735 | |
Total current assets | 195,277 | 240,065 |
Fixed Assets: | ||
Property, plant and equipment | 1,264,279 | 1,252,780 |
Less accumulated depreciation | (736,208) | (716,318) |
Net fixed assets | 528,071 | 536,462 |
Telecommunication licenses, net | 114,083 | 114,083 |
Goodwill | 60,690 | 60,691 |
Customer relationships, net | 5,560 | 5,913 |
Operating lease right-of-use assets | 61,762 | 63,235 |
Customer receivable - long term | 21,056 | 9,614 |
Other assets | 71,223 | 53,648 |
Total assets | 1,057,722 | 1,083,711 |
Current Liabilities: | ||
Current portion of long-term debt | 3,750 | 3,750 |
Current portion of Customer receivable credit facility | 1,101 | |
Accounts payable and accrued liabilities | 74,529 | 96,205 |
Dividends payable | 2,708 | 2,703 |
Accrued taxes | 8,495 | 7,501 |
Current portion of lease liabilities | 12,446 | 12,371 |
Advance payments and deposits | 24,727 | 24,681 |
Liabilities held for sale | 717 | |
Total current liabilities | 127,756 | 147,928 |
Deferred income taxes | 8,171 | 10,675 |
Lease liabilities, excluding current portion | 50,902 | 51,082 |
Other liabilities | 50,738 | 50,617 |
Customer receivable credit facility, net of current portion | 9,713 | |
Long-term debt, excluding current portion | 68,173 | 69,073 |
Total liabilities | 315,453 | 329,375 |
Commitments and contingencies (Note 14) | ||
ATN International, 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; 17,449,541 and 17,383,898 shares issued, respectively, 15,920,141 and 15,898,477 shares outstanding, respectively | 172 | 172 |
Treasury stock, at cost; 1,529,400 and 1,485,421 shares, respectively | (61,677) | (59,456) |
Additional paid-in capital | 186,930 | 187,754 |
Retained earnings | 516,897 | 516,901 |
Accumulated other comprehensive income | 269 | 278 |
Total ATN International, Inc. stockholders' equity | 642,591 | 645,649 |
Non-controlling interests | 99,678 | 108,687 |
Total equity | 742,269 | 754,336 |
Total liabilities and equity | $ 1,057,722 | $ 1,083,711 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances (in dollars) | $ 13 | $ 12.1 |
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 | 17,449,541 | 17,383,898 |
Common stock, shares outstanding | 15,920,141 | 15,898,477 |
Treasury stock, shares | 1,529,400 | 1,485,421 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUE: | ||
Total revenue | $ 124,510 | $ 110,905 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | ||
Selling, general and administrative | 37,693 | 34,427 |
Transaction-related charges | 730 | 44 |
Depreciation and amortization | 20,508 | 22,518 |
Loss on disposition of long-lived assets | 117 | 15 |
Total operating expenses | 121,161 | 103,606 |
Income from operations | 3,349 | 7,299 |
OTHER INCOME (EXPENSE) | ||
Interest income | (6) | 243 |
Interest expense | (1,147) | (1,156) |
Other income (expense) | 2,375 | (2,901) |
Other income (expense), net | 1,222 | (3,814) |
INCOME BEFORE INCOME TAXES | 4,571 | 3,485 |
Income tax provisions | 295 | 1,109 |
NET INCOME | 4,276 | 2,376 |
Net income attributable to non-controlling interests, net of tax expense of $0.1 million and $0.3 million, respectively. | (1,570) | (3,390) |
NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $ 2,706 | $ (1,014) |
NET INCOME (LOSS) PER WEIGHTED AVERAGE SHARE ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS: | ||
Basic (in dollars per share) | $ 0.17 | $ (0.06) |
Diluted (in dollars per share) | $ 0.17 | $ (0.06) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic (in shares) | 15,902 | 16,001 |
Diluted (in shares) | 15,952 | 16,001 |
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK (in dollars per share) | $ 0.17 | $ 0.17 |
Communication services | ||
REVENUE: | ||
Total revenue | $ 110,636 | $ 107,904 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | ||
Cost of services | 49,507 | 46,602 |
Other | ||
REVENUE: | ||
Total revenue | 13,874 | $ 3,001 |
Construction | ||
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | ||
Cost of services | $ 12,606 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Noncontrolling interest income tax expense | $ 0.1 | $ 0.3 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income | $ 4,276 | $ 2,376 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (40) | (4,425) |
Unrealized gain (loss) on derivatives | 31 | (177) |
Other comprehensive income (loss), net of tax | (9) | (4,602) |
Comprehensive income | 4,267 | (2,226) |
Less: Comprehensive income attributable to non-controlling interests | (1,570) | (3,390) |
Comprehensive income (loss) attributable to ATN International, Inc. | $ 2,697 | $ (5,616) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total ATNI Stockholders' Equity | Common Stock | Treasury Stock, at cost | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Non-Controlling Interests | Total |
Balance, beginning of period at Dec. 31, 2019 | $ 676,122 | $ 172 | $ (51,129) | $ 188,471 | $ 541,890 | $ (3,282) | $ 129,961 | $ 806,083 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of shares of common stock upon exercise of stock options | (3,229) | (3,229) | (3,229) | |||||
Stock-based compensation | 1,196 | 1,196 | (36) | 1,160 | ||||
Dividends declared on common stock | (2,715) | (2,715) | (2,715) | |||||
Distributions to non-controlling interests | (4,220) | (4,220) | ||||||
Repurchase of non-controlling interests | (1,774) | (1,774) | ||||||
Comprehensive income: | ||||||||
Net income (loss) | (1,014) | (1,014) | 3,390 | 2,376 | ||||
Other comprehensive income (loss) | (4,602) | (4,602) | (4,602) | |||||
Comprehensive income | (5,616) | 3,390 | (2,226) | |||||
Balance, end of period at Mar. 31, 2020 | 665,758 | 172 | (54,358) | 189,667 | 538,161 | (7,884) | 127,321 | 793,079 |
Balance, beginning of period at Dec. 31, 2020 | 645,649 | 172 | (59,456) | 187,754 | 516,901 | 278 | 108,687 | 754,336 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchase of shares of common stock | (2,221) | (2,221) | (2,221) | |||||
Stock-based compensation | 1,262 | 1,262 | 74 | 1,336 | ||||
Dividends declared on common stock | (2,710) | (2,710) | (2,710) | |||||
Distributions to non-controlling interests | (1,530) | (1,530) | ||||||
Repurchase of non-controlling interests | (2,086) | (2,086) | (9,123) | (11,209) | ||||
Comprehensive income: | ||||||||
Net income (loss) | 2,706 | 2,706 | 1,570 | 4,276 | ||||
Other comprehensive income (loss) | (9) | (9) | (9) | |||||
Comprehensive income | 2,697 | 1,570 | 4,267 | |||||
Balance, end of period at Mar. 31, 2021 | $ 642,591 | $ 172 | $ (61,677) | $ 186,930 | $ 516,897 | $ 269 | $ 99,678 | $ 742,269 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY | ||
Issuance of shares of common stock upon exercise of stock options | 62,892 | |
Purchase of shares of common stock | 43,978 | |
Dividends declared on common stock (dollars per per share) | $ 0.17 | $ 0.17 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 4,276 | $ 2,376 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Depreciation and amortization | 20,508 | 22,518 |
Provision for doubtful accounts | 1,122 | 1,260 |
Amortization of debt discount and debt issuance costs | 168 | 126 |
Stock-based compensation | 1,336 | 1,160 |
Deferred income taxes | (2,504) | (1,135) |
(Gain) loss on equity investments | (2,188) | 1,775 |
Loss on disposition of long-lived assets | 117 | 15 |
Unrealized (gain) loss on foreign currency | (81) | 739 |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Accounts receivable | 1,430 | (10,887) |
Customer receivable | (12,579) | |
Materials and supplies, prepayments, and other current assets | (253) | 431 |
Prepaid income taxes | 399 | |
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities | (7,648) | (4,055) |
Accrued taxes | 1,810 | 355 |
Other assets | (242) | 298 |
Other liabilities | 51 | 84 |
Net cash provided by operating activities | 5,323 | 15,459 |
Cash flows from investing activities: | ||
Capital expenditures | (19,495) | (14,061) |
Reimbursable capital expenditures | (6,185) | |
Receipt of government grants | 3,292 | |
Divestiture of businesses, net of transferred cash of $0.9 million | 18,597 | |
Purchases of strategic investments | (4,155) | (2,768) |
Net cash used in investing activities | (7,946) | (16,829) |
Cash flows from financing activities: | ||
Dividends paid on common stock | (2,703) | (2,721) |
Distributions to non-controlling interests | (3,530) | (4,220) |
Payment of debt issuance costs | 53 | (1,010) |
Principal repayments of term loan | (938) | (938) |
Purchases of common stock - stock-based compensation | (1,677) | (1,625) |
Purchases of common stock - share repurchase plan | (540) | (1,600) |
Repurchases of non-controlling interests | (11,522) | (1,774) |
Customer receivable credit facility borrowing | 10,814 | |
Net cash used in financing activities | (10,043) | (13,888) |
Effect of foreign currency exchange rates on cash and cash equivalents | (115) | |
Net change in cash, cash equivalents, and restricted cash | (12,666) | (15,373) |
Total cash, cash equivalents, and restricted cash, beginning of period | 104,997 | 162,358 |
Total cash, cash equivalents, and restricted cash, end of period | 92,331 | 146,985 |
Noncash investing activity: | ||
Purchases of property, plant and equipment included in accounts payable and accrued expenses | $ 10,075 | $ 8,393 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Net of transferred cash | $ 0.9 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 3 Months Ended |
Mar. 31, 2021 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
ORGANIZATION AND BUSINESS OPERATIONS | 1. ORGANIZATION AND BUSINESS OPERATIONS The Company strives to be a leading platform for the operation of, and investment in, smaller and specialty market communications services and technology companies. The Company has a long track record of delivering critical infrastructure-based solutions to underserved markets. The Company’s majority-owned operating subsidiaries provide facilities-based communications services, along with related information technology solutions, in the United States, Bermuda, and the Caribbean. The Company also has non-controlling investments in several communications and technology companies, and it continues to consider opportunities to make controlling and minority investments in businesses that it believes have the potential for generating substantial and relatively steady cash flows over extended periods of time or have technologies or business models that might prove valuable to the Company’s main operating subsidiaries or create significant longer term growth potential for the Company as a whole. At the holding company level, the Company oversees the allocation of capital within and among its subsidiaries, affiliates, new investments, and stockholders. The Company also has developed significant operational expertise and resources that it uses to augment the capabilities of its individual operating subsidiaries. Over the past ten years, the Company has built a platform of resources and expertise to support its operating subsidiaries and to improve their quality of service, and customer acquisition, retention, and satisfaction while maintaining optimal operating efficiencies. The Company has a number of shared service functions, including billing, network and engineering and customer service, and the parent company also employs personnel with specialized skills that provide greater economies of scale and expertise than would typically be available at the operating subsidiary level. The Company was incorporated in Delaware in 1987, began trading publicly in 1991 and spun off more than half of its operations to stockholders in 1998. The Company actively evaluates potential acquisitions, investment opportunities and other strategic transactions, both domestic and international, and generally looks for those that it believes have the potential for generating steady excess cash flows over extended periods of time. In addition, the Company considers non-controlling investments in earlier stage businesses that it considers strategically relevant, and which may offer long-term growth potential for us, either individually, or as research and development businesses that can support the Company’s operating subsidiaries in new technology, product, and service development and offerings. The Company has used the cash generated from its established operating units, and any asset sales, to re-invest in its existing businesses, to make strategic investments in additional businesses, and to return cash to the Company’s investors. The Company provides management, technical, financial, regulatory, and marketing services to its subsidiaries and typically receives a management fee calculated as a percentage of their revenues, which is eliminated in consolidation. For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Notes 1 and 14 to the Consolidated Financial Statements included in this Report. Through March 31, 2021, the Company had identified three operating segments to manage and review its operations and to facilitate investor presentations of its results. These three operating segments are as follows: ● International Telecom. Businesses contained in the Company’s international telecom segment offer a mix of fixed data, internet and voice services (“Fixed”) as well as retail mobility (“Mobility”) services to customers in Bermuda, the Cayman Islands, Guyana and the US Virgin Islands. The Company offers fixed video services in Bermuda, the Cayman Islands, and the US Virgin Islands and managed information technology services (“Managed Services”) to enterprise customers in all its markets. The Company also offers services to other telecom providers (“Carrier Services”), such as international long-distance, transport and access services, and roaming from such telecom providers’ customers traveling in its network service areas. ● US Telecom. In the United States, primarily in the Southwest, the Company offers Carrier Services, including wholesale roaming services, the leasing of critical network infrastructure such as towers and transport facilities, and site maintenance. The Company also provides Fixed, Mobility, and Managed Services to its retail and enterprise customers, and private network services to enterprise customers, municipalities and other service providers. ● Renewable Energy. In India, the Company provided distributed generation solar power to commercial and industrial customers through January 27, 2021. See Sale of Renewable Energy Operations for further details The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which it reports its revenue and the markets it served during the three months ended March 31, 2021: Segment Services Markets Tradenames International Telecom Mobility Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Fixed Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT+, Viya Carrier Services Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT+, Viya US Telecom Mobility United States (rural markets) Choice, Choice NTUA Wireless, Geoverse Fixed United States Commnet, Choice, Choice NTUA Wireless, Deploycom Carrier Services United States Commnet, Essextel Managed Services United States Choice Renewable Energy (1) Solar India Vibrant Energy (1) See Sale of Renewable Energy Operations for further details. The Company actively evaluates potential acquisitions, investment opportunities and other strategic transactions, both domestic and international, that meet its return on investment and other criteria. In addition, the Company considers non-controlling investments in earlier stage businesses that it considers strategically relevant, and which may offer long-term growth potential for the Company, either individually, or as research and development businesses that can support the Company’s operating subsidiaries in new product and service development and offerings. 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 revenues which is eliminated in consolidation. For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Note 13 to the Consolidated Financial Statements included in this Report. COVID-19 The Company is continuing to monitor and assess the effects of the ongoing COVID-19 pandemic on its commercial operations, the safety of its employees and their families, its sales force and customers and any potential impact on the Company’s revenue in 2021. The preparation of the condensed consolidated financial statements requires the Company to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates estimates, judgments and methodologies. The Company assessed certain accounting matters and estimates that generally require consideration of forecasted financial information in context with the information and estimates reasonably available to the Company and the unknown future impacts of COVID-19 as of March 31, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s allowance for credit losses, the carrying value of the Company’s goodwill and other long-lived assets, financial assets, valuation allowances for tax assets and revenue recognition. The Company assessed the impacts of COVID-19 on its consolidated financial statements as of and for the three months ended March 31, 2021, in particular the impacts on lines of revenues, operating expenses as well as the deferral and savings on other operating expenses and capital expenditures. During the three months ended March 31, 2021, while the Company’s International Telecom segment experienced strengthened demand for both its Mobility and Fixed services, its Carrier Services revenue declined as a result of a reduction in roaming revenue due to pandemic-related travel and stay-at-home restrictions in these markets as compared to the same period in 2020. Such restrictions also resulted in decreased Mobility and Carrier Services revenues within the Company’s US Telecom segment during the three months ended March 31, 2021 as compared to the same period of 2020. However, in response to certain anticipated impacts, the Company was able to implement operating expense savings during 2020 and the first quarter of 2021, particularly with respect to the Company’s International Telecom segment, that when coupled with Company-wide travel expense savings and capital expenditure deferrals, acted to offset much of the revenue loss or additional credit loss allowances caused by anticipated customer non-payment activity in the year. As a result, the Company’s assessment did not indicate that there was a material impact to the Company’s consolidated financial statements as of and for the three months ended March 31, 2021. However, the Company’s future assessments of the impacts of COVID-19 for the remainder of 2021 or the Company’s ability to realize continued operational expense savings, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. For example, the local economies of many of the Company’s Caribbean markets are tourism-dependent and the decline in global travel activity resulting from COVID-19 may continue to impact the Company’s revenue and cash flows for certain services in these markets as the Company’s retail and enterprise customers may be unable to pay for services, and the Company’s international roaming revenue may decline. Apart from government issued travel restrictions, we currently cannot assess how COVID-19 may influence our subscribers’ procurement behavior for our services or how that behavior will impact our revenues in the foreseeable future. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2021 | |
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 the periods described therein. 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 Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. The condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company holds controlling interests 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. Presentation of Revenue Effective January 1, 2020, the Company changed its presentation of revenue in the Condensed Consolidated Statement of Operations and in the Selected Segment Financial Information tables. This change is intended to better align the Company’s financial performance with the views of management and industry competitors, and to facilitate a more constructive dialogue with the investment community. Specifically, the previously disclosed revenue categories of wireless and wireline revenue are being represented as Mobility, Fixed and Carrier Services revenue within the Company’s segment information and are included within communications services revenue within its Statements of Operations. Managed services revenue, which was previously a component of wireline revenue, along with revenue from the Company’s Renewable Energy operations, is now included in other revenue. Construction revenue is also included as a component of other revenue. Presentation of Operating Expenses Effective January 1, 2021, the Company changed its presentation of operating expenses in the Condensed Consolidated Statement of Operations by combining the previously disclosed Termination and Access Fees with Engineering and Operations as the newly represented Cost of Services. In addition, the previously disclosed Sales, Marketing and Customer Service expenses are now combined with the previously disclosed General and Administrative expenses within the newly represented Selling, general and administrative expenses. The change in presentation was made to better align the Company’s results with industry standards. Cost of construction services continues to be broken out separately and all depreciation and amortization continues to be shown separately. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. The Company adopted ASU 2016-13 using the modified retrospective approach on its January 1, 2020 effective date. Refer to Note 3 of the Condensed Consolidated Financial Statements in this Report. On December 18, 2019, the FASB issued new guidance that simplifies the accounting for income taxes. Amendments include the removal of certain exceptions to the general principles of ASC 740, Income taxes. The Company adopted this guidance in 2021 using a prospective method. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements; however, the impact in future periods will be dependent on the extent of future events and circumstances. |
REVENUE RECOGNITION AND RECEIVA
REVENUE RECOGNITION AND RECEIVABLES | 3 Months Ended |
Mar. 31, 2021 | |
REVENUE RECOGNITION AND RECEIVABLES | |
REVENUE RECOGNITION AND RECEIVABLES | 3. REVENUE RECOGNITION AND RECEIVABLES Contract Assets and Liabilities The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from retail wireless contracts with both a multiyear service period and a promotional discount. In these contracts the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on the Company’s balance sheets. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retail revenue for postpaid customers is generally billed one month in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including mobile voice and data services, sold to customers is recorded as deferred revenue prior to the commencement of services. Contract liabilities are recorded in advanced payments and deposits on the Company’s balance sheets. In July 2019, August 2020 and May 2021, the Company entered into a Network Build and Maintenance Agreement (the “FirstNet Agreement”) with AT&T Mobility, LLC (“AT&T”) and the First and Second Amendments to the FirstNet Agreement, respectively (the “FirstNet Transaction”). In connection with the FirstNet Transaction, the Company will build a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) as well as a commercial wireless network in or near the Company’s current operating area in the Southwestern United States. The FirstNet Transaction includes construction and service performance obligations. The Company allocated the transaction price of the FirstNet Agreement to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The current portion receivables under this agreement are recorded in Customer receivable and the long-term portion is recorded in Customer receivable long-term on the Company’s balance sheet. The Company has certain wholesale roaming agreements that contain stand ready performance obligations and management allocates transaction value to performance obligations based on the standalone selling price. The standalone selling price is the estimated price the Company would charge for the good or service with similar customers in similar circumstances. Management determined the performance obligations were obligations to make the service continuously available and will recognize revenue evenly over the service period. Contract assets and liabilities consisted of the following (amounts in thousands) March 31, 2021 December 31, 2020 $ Change % Change Contract asset – current $ 3,044 $ 2,478 $ 566 23 % Contract asset – noncurrent 1,141 910 231 25 % Contract liability – current (17,159) (18,544) 1,385 7 % Contract liability – noncurrent (2,255) (2,193) (62) (3) % Net contract liability $ (15,229) $ (17,349) $ 2,120 12 % The contract asset – current is included in prepayments and other current assets and the contract asset – noncurrent is included in other assets on the Company’s balance sheet. The contract liability – current is included in advance payments and deposits and the contract liability – noncurrent is included in other liabilities on the Company’s balance sheet. The decrease in the Company’s net contract liability was due to the timing of customer prepayments, contract billings, and the FirstNet Transaction. During the three months ended March 31, 2021, the Company recognized revenue of $15.1 million related to its December 31, 2020 contract liability and amortized $0.7 million of the December 31, 2020 contract asset into revenue. The Company did no t recognize any revenue in the three months ended March 31, 2021 related to performance obligations that were satisfied or partially satisfied in previous periods. Contract Acquisition Costs The March 31, 2021 balance sheet includes current contract acquisition costs of $1.7 million in prepayments and other current assets and long term contract acquisition costs of $1.5 million in other assets. During the three months ended March 31, 2021, the Company amortized $0.6 million of contract acquisition cost. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear retail wireless contracts, which include a promotional discount, and the Company’s construction and service contracts. The transaction price allocated to unsatisfied performance obligations was $273 million and $299 million at March 31, 2021 and December 31, 2020, respectively. The Company expects to satisfy approximately 60% of the remaining performance obligations and recognize the transaction price within 24 months and the remainder thereafter. The Company has certain retail, wholesale, and renewable energy contracts where transaction price is allocated to remaining performance obligations. However, the Company omits these contracts from its disclosure by applying the right to invoice , one year or less, and wholly unsatisfied performance obligation practical expedients. Disaggregation The Company's revenue is presented on a disaggregated basis in Note 13 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision makers for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from Communication Services and other revenue. Communication Services revenue is further disaggregated into Mobility, Fixed, Carrier Services, and other services. Other revenue is further disaggregated into renewable energy, managed services and construction revenue. This disaggregation of revenue depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Receivables The Company adopted ASU 2016-13 on January 1, 2020. The standard requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses is based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. The Company adopted ASU 2016-13 using the modified retrospective approach, however, there was no impact of adoption on retained earnings. The standard impacted the Company’s calculation of credit losses from trade receivables. Historically, the Company recorded credit losses subsequent to the initial revenue transaction. After adoption of ASU 2016-13, the Company will record an estimate of future credit losses in conjunction with the revenue transaction based on the information available including historical experience and management’s expectations of future conditions. Those estimates will be updated as additional information becomes available. Our allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. There was no significant impact to the Company’s operating results due to the adoption of this standard. million. The receivable under the FirstNet Agreement totaled $23.4 million of which $2.4 million was current and $21.0 million was long-term. At December 31, 2020, the Company had gross accounts receivable of million was long-term. The Company monitors receivables through the use of historical operating data adjusted for expectation of future performance as appropriate. Activity in the allowance for credit losses is below: Three months ended March 31, 2021 Three months ended March 31, 2020 Balance at beginning of period $ 12,121 $ 12,724 Current period provision for expected losses 1,122 1,260 Write-offs charged against the allowance (354) (1,525) Recoveries collected 124 208 Balance at end of period $ 13,013 $ 12,667 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2021 | |
LEASES | |
LEASES | 4. LEASES The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The lease terms 3 Supplemental lease information The components of lease expense were as follows (in thousands): March 31, 2021 March 31, 2020 Operating lease cost: Operating lease cost $ 4,225 $ 4,047 Short-term lease cost 408 543 Variable lease cost 1,065 803 Total operating lease cost $ 5,698 $ 5,393 Finance lease cost: Amortization of right-of-use asset $ 574 $ 571 Variable costs 196 272 Total finance lease cost $ 770 $ 843 During each of the three month periods ended March 31, 2021 and 2020, the Company paid $3.5 million for operating lease liabilities. During the three months ended March 31, 2021, the Company recorded At March 31, 2021, finance leases with a cost of $26.5 million and accumulated amortization of $10.1 million were included in property, plant and equipment. During the three months ended March 31, 2021, the Company paid $0.1 million for finance lease liabilities and recorded $1.1 million of additional finance lease liabilities. At March 31, 2021, finance leases had a lease liability of $2.2 million, of which $0.4 million was current. At December 31, 2020, finance leases with a cost of $25.4 million and accumulated amortization of $9.5 million were included in property, plant and equipment The weighted average remaining lease terms and discount rates as of March 31, 2021 and December 31, 2020 are noted in the table below: March 31, 2021 December 31, 2020 Weighted-average remaining lease term Operating leases 5.8 years 5.9 years Financing leases 10.6 years 10.9 years Weighted-average discount rate Operating leases 4.9% 5.0% Financing leases 4.2% 3.3% Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands): Operating Leases Financing Leases 2021 (excluding the three months ended March 31, 2021) $ 11,043 $ 377 2022 14,479 502 2023 12,086 502 2024 11,033 380 2025 8,133 281 Thereafter 13,638 522 Total lease payments 70,412 2,564 Less imputed interest (9,619) (339) Total $ 60,793 $ 2,225 Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands): Operating Leases Financing Leases 2021 $ 14,877 $ 334 2022 14,202 333 2023 11,799 333 2024 10,633 211 2025 7,816 — Thereafter 13,094 — Total lease payments 72,421 1,211 Less imputed interest (10,097) (82) Total $ 62,324 $ 1,129 As of March 31, 2021, the Company did not have any material operating or finance leases that have not yet commenced. |
USE OF ESTIMATES
USE OF ESTIMATES | 3 Months Ended |
Mar. 31, 2021 | |
USE OF ESTIMATES | |
USE OF ESTIMATES | 5. 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 credit losses, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in business combinations, fair value of indefinite-lived intangible assets, goodwill, assessing the impairment of assets, revenue, and income taxes. Actual results could differ significantly from those estimates. See Note 1 for a discussion of the impact of COVID-19 on the use of these estimates. |
DISPOSITIONS
DISPOSITIONS | 3 Months Ended |
Mar. 31, 2021 | |
DISPOSITIONS AND PLATFORM INVESTMENTS | |
DISPOSITIONS AND PLATFORM INVESTMENTS | 6. DISPOSITIONS Disposition of International Solar Business On November 19, 2020, the Company entered into an agreement to sell 67% of the outstanding equity interests of its India solar operations that owns and operates distributed generation solar power projects under the Vibrant name in India, or the Vibrant Transaction. ownership interest in the India solar operations subsequent to the transaction. The sale agreement contains representations, warranties and covenants of the parties that are customary for transactions of this type. The sale was completed in Company’s ownership interest in Vibrant are recorded through the equity method of accounting within the Corporate and Other operating segment. As such, the Company’s consolidated financial statements will not include revenue and operating expenses from Vibrant, but instead, “other income (expense)” within the Corporate and Other operating segment will include its share of Vibrant’s profits or losses. The Company will continue to present the historical results of its Renewable Energy segment for comparative purposes. The table below identifies the assets and liabilities transferred (in thousands): Consideration Received $ 35,218 Assets and liabilities disposed Current assets 4,899 Property, plant and equipment 45,891 Other assets 439 Current liabilities (759) Net assets disposed $ 50,470 Consideration less net assets disposed (15,252) Foreign currency losses reclassified from accumulated other comprehensive income 6,258 Loss on sale 21,510 Transaction costs 1,283 Loss on sale including transaction costs $ (22,793) The Company reported a loss on sale of $21.5 million during the year ended December 31, 2020 and Vibrant’s assets and liabilities were reported as held for sale at December 31, 2020. The Company recorded transaction costs of million was recorded during the three months ended March 31, 2021. The consideration received includes million of an equity method investment in Vibrant. The Company is finalizing working capital adjustments and the purchase price escrow will be held in escrow for a period of twelve months after the closing to secure the Company’s indemnification obligations. The Company has 24 months after the close of the transaction to satisfy the conditions necessary to receive the earn out consideration. The Vibrant Transaction does not qualify as discontinued operations because the disposition was not a strategic shift which will have a major effect on the Company’s operations, the historical results and financial position of the operations are presented within continuing operations. |
FAIR VALUE MEASUREMENTS AND INV
FAIR VALUE MEASUREMENTS AND INVESTMENTS | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE MEASUREMENTS AND INVESTMENTS | |
FAIR VALUE MEASUREMENTS AND INVESTMENTS | 7. FAIR VALUE MEASUREMENTS AND INVESTMENTS 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 March 31, 2021 and December 31, 2020 are summarized as follows (in thousands): March 31, 2021 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,955 — — 2,955 Other investments — — 2,110 2,110 Interest rate swap — (126) — (126) Total assets and liabilities measured at fair value $ 2,955 $ 254 $ 2,110 $ 5,319 December 31, 2020 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,785 — — 2,785 Other investments — — 13,357 13,357 Interest rate swap — (157) — (157) Total assets and liabilities measured at fair value $ 2,785 $ 223 $ 13,357 $ 16,365 During the three months ended March 31, 2021, other investments measured using Level 3 inputs decreased $11.2 million. The decrease was the result of transferring $11.0 million out of Level 3 due to the conversion of a convertible debt instrument. At December 31, 2020, the Company accounted for a convertible debt instrument at fair value. During the three months ended March 31, 2021, that instrument was converted to equity and the Company began accounting for the investment under the cost method of accounting. Refer to Other Investments below. Also, during the three months ended March 31, 2021, the fair value of the remaining Level 3 investments decreased $0.2 million due to $0.3 million of cash distributions and $0.1 million of income recognized in the other income line of the Company’s statement of operations. Certificate of Deposit As of March 31, 2021 and December 31, 2020 this asset class consisted of a time deposit at a financial institution denominated in US 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 March 31, 2021 and December 31, 2020, this asset class consisted of a money market portfolio that comprises Federal government and US 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. Other Investments In 2019, the Company made a $14.4 million investment in a renewable energy partnership. In 2020, the Company received an investment tax credit of $12.0 million from its investment and will receive future cash distributions from the partnership’s operations. The Company elected the deferral method to account for the credit and elected the fair value option to account for the equity investment. The Company’s investment had a fair value of $2.1 million at March 31, 2021, and $2.3 million at December 31, 2020. The asset is classified within Level 3 of the fair value hierarchy. The Company used the income approach to fair value the investment and the inputs consisted of a discount rate and future cash flows calculated based on the investment attributes. Also in 2019, the Company made an investment in an early-stage venture through the acquisition of a convertible debt instrument. The instrument converted into equity during the first quarter of 2021. Upon conversion the Company will account for the investment under the cost method of accounting as the investment does not have a readily determinable fair value. Prior to conversion, the Company accounted for the investment under the fair value option using Level 3 inputs. During the three months ended March 31, 2021, the Company recorded a gain of $2.5 million on the conversion and invested an additional $3.0 million of cash, increasing its book value from $11.0 million at December 31, 2020 to $16.5 million at March 31, 2021. The Company also holds investments in equity securities consisting of non-controlling investments in privately held companies. These investments, over which the Company does not have the ability to exercise significant influence, are without readily determinable fair values. The investments are measured at cost, less any impairment, adjusted for observable price changes of similar investments of the same issuer. Fair value is not estimated for these investments if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment. The carrying value of the investments was $1.3 million at March 31, 2021 and December 31, 2020, respectively. These investments are included with other assets on the consolidated balance sheets. Equity Method Investments In the first quarter of 2020, the Company increased its ownership in one investment of a privately held company to approximately 24% of the outstanding voting equity through an additional $2.8 million investment. With this investment the Company obtained the ability to exercise significant influence over the investee and began accounting for the investment under the equity method of accounting including the recording of its share of the investee’s earnings or losses. The carrying value of the investment was million at March 31, 2021 and December 31, 2020, respectively. The value decreased Company’s share of investee losses, and currency losses of $0.2 million. The investment is included with other assets on the consolidated balance sheets. In the first quarter of 2021, the Company began to account for its former India solar operations under the equity method of accounting. Subsequent to the close of the Vibrant Transaction in January 2021, the Company invested an additional $1.2 million into its operations and distributed $0.3 million to a minority investment partner. The book value of the investment was $12.7 million at March 31, 2021. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of the interest rate swap is measured using Level 2 inputs. The fair value of long-term debt and the customer receivable credit facility is estimated using Level 2 inputs. At March 31, 2021, the fair value of long-term debt and the customer receivable credit facility, including the current portion, was million. At December 31, 2020, the fair value of long-term debt, including the current portion, was |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2021 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 8. LONG-TERM DEBT On April 10, 2019, the Company entered into the credit facility with CoBank, ACB and a syndicate of other lenders (the “2019 Credit Facility”). The 2019 Credit Facility provides for a $200 million revolving credit facility that includes (i) up to $75 million for standby or trade letters of credit and (ii) up to $10 million under a swingline sub-facility. Approximately $16.0 million of performance letters of credit have been issued and remain outstanding and undrawn as of March 31, 2021. The 2019 Credit Facility matures on April 10, 2024. Amounts borrowed under the 2019 Credit Facility bear interest at a rate equal to, at the Company’s option, either (i) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging between 1.25% to 2.25% or (ii) a base rate plus an applicable margin ranging from 0.25% to 1.25%. Swingline loans bear interest at the base rate plus the applicable margin for base rate loans. The base rate is equal to the higher of (i) 1.00% plus the higher of (x) LIBOR for an interest period of one month and (y) LIBOR for an interest period of one week; (ii) the Federal Funds Effective Rate (as defined in the 2019 Credit Facility) plus 0.50% per annum; and (iii) the Prime Rate (as defined in the 2019 Credit Facility). The applicable margin is determined based on the Total Net Leverage Ratio (as defined in the 2019 Credit Facility). Under the terms of the 2019 Credit Facility, the Company must also pay a fee ranging from 0.150% to 0.375% of the average daily unused portion of the 2019 Credit Facility over each calendar quarter. The 2019 Credit Facility contains customary representations, warranties and covenants, including a financial covenant that imposes a maximum ratio of indebtedness to EBITDA as well as covenants limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. The Company’s investments in “unrestricted” subsidiaries and certain dividend payments to its stockholders are not limited unless the Total Net Leverage Ratio is equal to or greater than 1.75 to 1.0. The Total Net Leverage Ratio is measured each fiscal quarter and is required to be less than or equal to 2.75 to 1.0. In the event of a Qualifying Acquisition (as defined in the 2019 Credit Facility), the Total Net Leverage Ratio increases to 3.25 to 1.0 for the subsequent three fiscal quarters. The 2019 Credit Facility also provides for the incurrence by the Company of incremental term loan facilities, when combined with increases to revolving loan commitments, in an aggregate amount not to exceed $200 million (the “Accordion”). Amounts borrowed under the Accordion are also subject to proforma compliance with a net leverage ratio financial covenant. As of March 31, 2021, the Company was in compliance with all of the financial covenants, had no outstanding borrowings and, net of the $16.0 million of outstanding performance letters of credit, had $184.0 million of availability under the 2019 Credit Facility. FirstNet Receivables Credit Facility On March 26, 2020, Commnet Finance, a wholly owned subsidiary of Commnet Wireless, entered into receivables credit facility with the Company, Commnet Wireless, and CoBank, ACB (the “Receivables Credit Facility”). The Receivables Credit Facility provides for a senior secured delayed draw term loan in an aggregate principal amount of up to $75.0 million and the proceeds may be used to acquire certain receivables from Commnet Wireless. The receivables to be financed and sold under the Receivables Credit Facility, which provide the loan security, relate to the obligations of AT&T under the FirstNet Agreement. The delayed draw period will expire on December 31, 2021. The maturity date for each loan will be set by CoBank and will match the weighted average maturity of the certain receivables financed. Interest on the loans accrues at a rate based on (i) LIBOR plus 2.50%, (ii) a base rate plus 1.50% or (iii) a fixed annual interest rate to be quoted by CoBank. If the Company selects a variable interest rate option, it is required to enter an interest rate swap fixing the interest rate. The Receivables Credit Facility contains customary events of termination, representations and warranties, affirmative and negative covenants and events of default customary for facilities of this type. As of March 31, 2021, the Company had $10.8 million outstanding, of which $1.1 million was current, and $64.2 million of availability under the Receivables Credit Facility. The Company capitalized million were unamortized at March 31, 2021. Viya Debt The Company, and certain of its subsidiaries, have entered into a $60.0 million loan agreement (the “Viya Debt”) with Rural Telephone Finance Cooperative (“RTFC”). The Viya Debt agreement contains customary representations, warranties and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and a financial covenant that limits the maximum ratio of indebtedness to annual operating cash flow to 3.5 to 1.0 (the “Net Leverage Ratio”). This covenant is tested on an annual basis at the end of each fiscal year. Interest is paid quarterly at a fixed rate of 4.0% per annum and principal repayment is not required until maturity on July 1, 2026. Prepayment of the Viya Debt may be subject to a fee under certain circumstances. The debt is secured by certain assets of the Company’s Viya subsidiaries and is guaranteed by the Company. With RTFC’s consent, the Company funded the restoration of Viya’s network, following Hurricanes Irma and Maria in 2017, through an intercompany loan arrangement with a $75.0 million limit. The Company was not in compliance with the Net Leverage Ratio covenant of the Viya Debt agreement for the year ending December 31, 2020 and received a waiver from the RTFC on February 25, 2021. The Company paid a fee of $0.9 million in 2016 to lock the interest rate at 4% per annum over the term of the Viya Debt. The fee was recorded as a reduction to the Viya Debt carrying amount and is being amortized over the life of the loan. As of March 31, 2021, $60.0 million of the Viya Debt remained outstanding and $0.5 million of the rate lock fee was unamortized. One Communications Debt The Company has an outstanding loan from HSBC Bank Bermuda Limited (the “One Communications Debt”) which is scheduled to mature on May 22, 2022 and bears interest at the one-month LIBOR plus a margin ranging between 2.5% to 2.75% per annum paid quarterly. The One Communications Debt contains customary representations, warranties and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and financial covenants, tested annually as of and for the twelve months ended December 31st, that limit the ratio of tangible net worth to long term debt and total net debt to EBITDA and require a minimum debt service coverage ratio (as defined in the One Communications Debt agreement). The Company was in compliance with its covenants as of December 31, 2020. As a condition of the One Communications Debt, the Company was required to enter into a hedging arrangement with a notional amount equal to at least 30% of the outstanding loan balance and a term corresponding to the term of the One Communications Debt. As such, the Company entered into an amortizing interest rate swap that has been designated as a cash flow hedge, which had an original notional amount of $11.0 million, has an interest rate of 1.874%, and expires in March 2022. As of March 31, 2021, the swap had an unamortized notional amount of $7.1 million. The Company capitalized $0.3 million of fees associated with the One Communications Debt which are being amortized over the life of the debt and are recorded as a reduction to the debt carrying amount. As of March 31, 2021, $12.5 million of the One Communications Debt was outstanding and $0.1 million of the capitalized fees remained unamortized. |
GOVERNMENT GRANTS
GOVERNMENT GRANTS | 3 Months Ended |
Mar. 31, 2021 | |
GOVERNMENT GRANTS | |
GOVERNMENT GRANTS | 9. GOVERNMENT GRANTS Universal Service Fund The Federal Universal Service Fund (“USF”) is a subsidy program managed by the Federal Communications Commission (“FCC”). USF funds are disbursed to telecommunication providers through programs: the High Cost Program; Low Income Program (“Lifeline Program”); Schools and Libraries Program (“E-Rate Program”); and Rural Health Care Support Program. The Company participates in the High Cost Program, Lifeline Program, E-Rate Program, and Rural Health Care Support Program as further described below. All of these funding programs are subject to certain operational and reporting compliance requirements. The Company believes it is in compliance with all applicable requirements. During each of the three month periods ended March 31, 2021 and 2020, the Company recorded $4.1 million of revenue from the High Cost Program in its International Telecom segment for its US Virgin Islands operations under the “Viya” name. In 2018, the FCC initiated a proceeding to reform the High Cost Program in the US Virgin Islands and Puerto Rico in which it proposed to allocate USF funding of up to $18.7 million per year (inclusive of the $16.4 million per year currently allocated to Viya) for 10 years to supplant the $16.4 million that Viya currently receives per year. While Viya applied for Connect USVI Fund support allocated for the US Virgin Islands, on November 16, 2020, the FCC announced that Viya was not the recipient of the provisional award and that the FCC had provisionally accepted a bid of approximately $8.5 million per year for a term of 10 years . Viya has challenged this decision and its challenge remains pending before the FCC. If Viya’s challenge is not granted, pursuant to the terms of the program, Viya’s USF support will be reduced, to two -thirds of the legacy total amount, or $10.9 million, during the first year following the finalization of the award and to one -third of the legacy total amount, or $5.5 million, during the second year. Thereafter, Viya will not receive High Cost Program support. Also, during each of the three month periods ended March 31, 2021 and 2020, the Company recorded $0.3 million of High Cost Program revenue in its US Telecom segment. The Company is subject to certain operational, reporting and construction requirements as a result of this funding, and the Company believes that it is in compliance with all of these requirements. In August 2018, the Company was awarded $79.9 million over 10 years under the Connect America Fund Phase II Auction. Under this program, the Company is required to provide fixed broadband and voice services to certain eligible areas in the United States and is subject to operational and reporting requirements. The Company determined the award is a revenue grant, and as a result the Company will record the funding as revenue upon receipt. The Company recorded $1.9 million in each of the three-month periods ended March 31, 2021 and 2020 from the Connect America Fund Phase II program. million of such grants. The Company was awarded million of additional grants in the three months ended March 31, 2021. The Company has completed its construction obligations on million of such construction obligations remain with completion deadlines beginning in June 2021. Once these projects are constructed, the Company is obligated to provide service to the participants. The Company receives funds upon construction completion. The Company received The Company also receives funding to provide discounted telecommunication services to eligible customers under the E-Rate Program, Lifeline Program, and Rural Health Care Support Program. During the three months ended March 31, 2021 and 2020, the Company recorded revenue of million, respectively, in the aggregate from these programs. The Company is subject to certain operational and reporting requirements under the above mentioned programs and it believes that it is in compliance with all of these requirements. CARES Act million of funding under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). During the three months ended March 31, 2021, the Company received an additional million of funding. In total the Company received of funding under this program. The funding was utilized to construct network infrastructure in the Company’s US Telecom segment. The construction was completed as of March 31, 2021 and million of the funding was recorded as a reduction to property, plant and equipment and subsequent reduction to depreciation expense. The remaining Tribal Bidding Credit As part of the broadcast television spectrum incentive auction, the FCC implemented a tribal lands bidding credit to encourage deployment of wireless services utilizing 600 MHz spectrum on the lands of federally recognized tribes. The Company received a bidding credit of $7.4 million under this program in 2018. A portion of these funds will be used to offset network capital costs and a portion will be used to offset the costs of supporting the networks. The Company’s current estimate is that it will use $6.1 million to offset capital costs, consequently reducing future depreciation expense and $1.3 million to offset the cost of supporting the network which will reduce future operating expense. Through March 31, 2021, the Company has spent $6.1 million on capital expenditures and has recorded $0.3 million in offsets to the cost of supporting the network. The credits are subject to certain requirements, including deploying service by January 2021 and meeting minimum coverage metrics. If the requirements are not met the funds may be subject to claw back provisions. The Company believes it is in compliance with all applicable requirements related to these funds. CBRS Auction During the third quarter of 2020, the Company participated in the FCC’s Citizens Broadband Radio Service (CBRS) auction for Priority Access Licenses (PALs) in the 3.5 GHz spectrum band. These PALs are licensed on a county-by-county basis and are awarded for a 10-year renewable term. The Company was a winning bidder for PALs located strategically throughout the United States at a total cost of approximately $20.4 million. In connection with the awarded licenses, the Company will have to achieve certain CBRS spectrum build out obligations. The Company currently expects to comply with all applicable requirements related to these licenses. RDOF In the 2020 Rural Digital Opportunity Fund Phase I Auction (“RDOF”), pending the FCC’s conclusion of the award process, we expect to receive approximately $20.1 million over 10 years to provide broadband coverage to over 10,000 households. Once confirmed, we will be obligated to provide broadband and voice services to certain eligible areas in the United States. |
RETIREMENT PLANS
RETIREMENT PLANS | 3 Months Ended |
Mar. 31, 2021 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 10. RETIREMENT PLANS The Company has noncontributory defined benefit pension and noncontributory defined medical, dental, vision, and life benefit plans for eligible employees in its International Telecom segment who meet certain eligibility criteria. The Company recorded the net periodic benefit cost identified below (in thousands): Three months ended March 31, 2021 March 31, 2020 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 54 $ 35 $ 423 $ 32 Non-operating expense Interest cost 572 41 879 45 Expected return on plan assets (687) — (1,158) — Actuarial (gain)/ loss — — (7) (15) Net periodic pension expense (benefit) $ (61) $ 76 $ 137 $ 62 In the first quarter of 2020, the Company began the process of winding up one of its pension plans. At December 31, 2020 this plan had assets of $15.6 million and a projected benefit obligation of $15.6 million. The Company was not required to make contributions to its pension plans during the three months ended March 31, 2021 and 2020. However, the Company periodically evaluates whether to make discretionary contributions. The Company funds its postretirement benefit plans as claims are made and did not make contributions to its pension plans during the three months ended March 31, 2021 and 2020. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The Company’s effective tax rate for the three months ended March 31, 2021 and 2020 was 6.5% and 31.8%, respectively. The effective tax rate for the three months ended March 31, 2021 was primarily impacted by the following items: (i) the mix of income generated among the jurisdictions in which the Company operates and (ii) a discrete expense of $0.5 million for interest on unrecognized tax positions. The effective tax rate for the three months ended March 31, 2020 was primarily impacted by the following items: (i) the remeasurement of a forecasted domestic loss at a higher tax rate due to carryback provisions as provided by the CARES Act, (ii) the mix of income generated among the jurisdictions in which the Company operates along with the exclusion of losses in the US Virgin Islands and India where the Company cannot benefit from those losses as required by ASC 740-270-30-36(a), (iii) discrete items including a $0.5 million expense for interest on unrecognized tax positions, a $0.4 million expense to record a valuation allowance against an investment write-down which cannot be benefitted for tax purposes, and a $0.3 million benefit (net) related to the remeasurement of existing losses and temporary differences at a higher tax rate due to carryback provisions as provided by the CARES Act. The Company’s effective tax rate is based upon estimated income before provision for income taxes for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax contingencies. The Company’s consolidated tax rate will continue to be impacted by any transactional or one-time items in the future and the mix of income in any given year generated among the jurisdictions in which the Company operates. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from the Company’s accrued positions as a result of uncertain and complex application of tax law and regulations. Additionally, the recognition and measurement of certain tax benefits include estimates and judgment by management. Accordingly, the Company could record additional provisions or benefits for US federal, state, and foreign tax matters in future periods as new information becomes available. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
NET INCOME (LOSS) PER SHARE | |
NET INCOME (LOSS) PER SHARE | 12. NET INCOME (LOSS) PER SHARE For each of the three months ended March 31, 2021 and 2020, the calculations of basic and diluted weighted average shares of common stock outstanding do not include 5,000 shares relating to stock options as the effects of those options were anti-dilutive. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2021 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 13. SEGMENT REPORTING The Company has the following three reportable and operating segments: i) International Telecom, ii) US Telecom, and iii) Renewable Energy. The following tables provide information for each operating segment (in thousands): For the Three Months Ended March 31, 2021 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 21,821 $ 2,860 $ — $ — $ 24,681 Fixed 58,748 6,370 — — 65,118 Carrier Services 1,883 18,736 — — 20,619 Other 218 — — — 218 Total Communication Services Revenue 82,670 27,966 — — 110,636 Other Renewable Energy — — 418 — 418 Managed Services 1,150 — — — 1,150 Construction — 12,306 — — 12,306 Total Other Revenue 1,150 12,306 418 — 13,874 Total Revenue 83,820 40,272 418 — 124,510 Depreciation and amortization 13,826 5,193 188 1,301 20,508 Non-cash stock-based compensation 37 15 22 1,262 1,336 Operating income (loss) 13,116 (534) (662) (8,571) 3,349 For the Three Months Ended March 31, 2020 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 20,230 $ 2,403 $ — $ — $ 22,633 Fixed 57,741 4,825 — — 62,566 Carrier Services 2,298 20,071 — — 22,369 Other 336 — — — 336 Total Communication Services Revenue 80,605 27,299 — — 107,904 Other Renewable Energy — — 1,322 — 1,322 Managed Services 1,679 — — 1,679 Total Other Revenue 1,679 — 1,322 — 3,001 Total Revenue 82,284 27,299 1,322 — 110,905 Depreciation and amortization 14,315 5,886 614 1,703 22,518 Non-cash stock-based compensation (37) — — 1,197 1,160 Operating income (loss) 13,477 2,193 (456) (7,915) 7,299 (1) Corporate and Other items refer to corporate overhead costs and consolidating adjustments Selected balance sheet data for each of the Company’s segments as of March 31, 2021 and December 31, 2020 consists of the following (in thousands): International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated March 31, 2021 Cash, Cash equivalents, and Investments $ 40,505 $ 29,389 $ 5,822 $ 15,543 $ 91,259 Total current assets 100,470 67,739 9,716 17,352 195,277 Fixed assets, net 448,690 67,829 — 11,552 528,071 Goodwill 25,421 35,269 — — 60,690 Total assets 634,344 302,966 22,369 98,043 1,057,722 Total current liabilities 77,100 33,216 356 17,084 127,756 Total debt 71,923 10,814 — — 82,737 December 31, 2020 Cash, Cash equivalents, and Investments $ 45,848 $ 26,921 $ 4,311 $ 26,845 $ 103,925 Total current assets 107,315 65,806 39,057 27,887 240,065 Fixed assets, net 449,888 73,717 — 12,857 536,462 Goodwill 25,421 35,270 — — 60,691 Total assets 642,834 265,797 39,045 136,035 1,083,711 Total current liabilities 80,875 43,200 1,038 22,815 147,928 Total debt 72,823 — — — 72,823 Capital Expenditures International US Renewable Corporate and Three months ended March 31, Telecom Telecom Energy Other (1) Consolidated 2021 $ 10,506 $ 14,939 $ — $ 235 $ 25,680 2020 10,465 1,972 720 904 14,061 (1) Corporate and other items refer to corporate overhead costs and consolidating adjustments |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 14. 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, 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. In 1990, the Company’s Guyana subsidiary, GTT, was awarded a license to provide domestic and international voice and data services in Guyana on an exclusive basis until December 2030. Since 2001, the Government of Guyana has stated its intention to introduce additional competition into Guyana’s telecommunications sector. In connection therewith, the Company and GTT met on several occasions with officials of the Government of Guyana to discuss potential modifications of GTT’s exclusivity and other rights under the existing agreement and license. On October 5, 2020, the Prime Minister of Guyana formally implemented telecommunications legislation previously passed by the Guyana Parliament in 2016 that introduces material changes to many features of Guyana’s existing telecommunications regulatory regime with the intention of creating a more competitive market. At that time, the Company was issued a new license to provide domestic and international voice as well as data services and mobile services in Guyana. Two of the Company’s competitors were issued service licenses as well. While the Company has requested details of its competitors’ licenses, such information has not been made public by the Guyana Telecommunications Agency, and the Company is not yet able to ascertain whether the licenses issued to its competitors permit any competitors to provide services that have been subject to GTT’s exclusive rights contained in its 1990 license. On October 23, 2020, the Government of Guyana also brought into effect new telecommunications regulations called for by the telecommunications legislation. The regulations include new requirements for the market as a whole, which impose costly additional regulatory fees and impact the Company’s operations, administrative reporting and services. There can be no assurance that these regulations will be effectively implemented, or that they will be administered in a fair and transparent manner. Historically, GTT has been subject to other long-standing litigation proceedings and disputes in Guyana that have not yet been resolved. The Company believes that none of these additional proceedings would, in the event of an adverse outcome, have a material impact on the Company’s consolidated financial position, results of operations or liquidity. In a letter dated September 8, 2006, the National Frequency Management Unit (“NFMU”) agreed that total spectrum fees in Guyana should not increase for the years 2006 and 2007. However, that letter implied that spectrum fees in 2008 and onward may be increased beyond the amount GTT agreed to with the Government of Guyana. GTT has objected to the NFMU’s proposed action and reiterated its position that an increase in fees prior to development of an acceptable methodology would violate the Government’s prior agreement. In 2011, GTT paid the NFMU $2.6 million representing payments in full for 2008, 2009 and 2010. However, by letter dated November 23, 2011, the NFMU stated that it did not concur with GTT’s inference that the amount was payment in full for the specified years as it was NFMU’s continued opinion that the final calculation for spectrum fees was not agreed upon and was still an outstanding issue. By further letter dated November 24, 2011, the NFMU further rejected a proposal that was previously submitted jointly by GTT and another communications provider that outlined a recommended methodology for the calculation of these fees. The NFMU stated that it would prepare its own recommendation for consideration by the Minister of Telecommunications, who would decide the matter. GTT has paid undisputed spectrum fees according to the methodology used for its 2011 payments, and has reserved amounts payable according to this methodology. There have been limited further discussions on this subject and GTT has not been given the opportunity to review recommendations made by the NFMU to the Minister on spectrum fee methodology, if any. On May 8, 2009, a GTT competitor, Digicel, filed a lawsuit in Guyana challenging the legality of GTT’s exclusive license rights under Guyana’s constitution and GTT intervened in the suit in order to oppose Digicel’s claims. The case remains pending. The Company believes that any legal challenge to GTT’s exclusive license rights granted in 1990 is without merit and the Company intends to defend vigorously against such legal challenge. GTT has filed several lawsuits in the High Court of Guyana asserting that, despite its denials, Digicel is engaged in international bypass in violation of GTT’s exclusive license rights, the interconnection agreement between the parties, and the laws of Guyana. GTT is seeking injunctive relief to stop the illegal bypass activity and monetary damages. Digicel filed counterclaims alleging that GTT has violated the terms of the interconnection agreement and Guyana laws. These suits, filed in 2010 and 2012, have been consolidated with Digicel’s constitutional challenge described above. Prior to the declaration of COVID-19 related travel and business restrictions in Guyana, the consolidated cases were scheduled to proceed to trial in 2020. GTT expects to resume the litigation following the lifting of COVID-19 related restrictions and intends to prosecute these matters vigorously; however, the Company cannot accurately predict at this time when the consolidated suit will go to trial. GTT is also involved in several legal claims regarding its tax filings with the Guyana Revenue Authority dating back to 1991 regarding the deductibility of intercompany advisory fees as well as other tax assessments. The Company maintains that any liability GTT might be found to have with respect to the disputed tax assessments, totaling $44.1 million, would be offset in part by the amounts necessary to ensure that GTT’s return on investment was no less than 15% per annum for the relevant periods. The Company believes that some adverse outcome is probable and has accordingly accrued $5.0 million as of March 31, 2021 for these matters. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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 the periods described therein. 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 Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. The condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company holds controlling interests 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. Presentation of Revenue Effective January 1, 2020, the Company changed its presentation of revenue in the Condensed Consolidated Statement of Operations and in the Selected Segment Financial Information tables. This change is intended to better align the Company’s financial performance with the views of management and industry competitors, and to facilitate a more constructive dialogue with the investment community. Specifically, the previously disclosed revenue categories of wireless and wireline revenue are being represented as Mobility, Fixed and Carrier Services revenue within the Company’s segment information and are included within communications services revenue within its Statements of Operations. Managed services revenue, which was previously a component of wireline revenue, along with revenue from the Company’s Renewable Energy operations, is now included in other revenue. Construction revenue is also included as a component of other revenue. Presentation of Operating Expenses Effective January 1, 2021, the Company changed its presentation of operating expenses in the Condensed Consolidated Statement of Operations by combining the previously disclosed Termination and Access Fees with Engineering and Operations as the newly represented Cost of Services. In addition, the previously disclosed Sales, Marketing and Customer Service expenses are now combined with the previously disclosed General and Administrative expenses within the newly represented Selling, general and administrative expenses. The change in presentation was made to better align the Company’s results with industry standards. Cost of construction services continues to be broken out separately and all depreciation and amortization continues to be shown separately. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. The Company adopted ASU 2016-13 using the modified retrospective approach on its January 1, 2020 effective date. Refer to Note 3 of the Condensed Consolidated Financial Statements in this Report. On December 18, 2019, the FASB issued new guidance that simplifies the accounting for income taxes. Amendments include the removal of certain exceptions to the general principles of ASC 740, Income taxes. The Company adopted this guidance in 2021 using a prospective method. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements; however, the impact in future periods will be dependent on the extent of future events and circumstances. |
ORGANIZATION AND BUSINESS OPE_2
ORGANIZATION AND BUSINESS OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 | Segment Services Markets Tradenames International Telecom Mobility Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Fixed Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT+, Viya Carrier Services Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT+, Viya US Telecom Mobility United States (rural markets) Choice, Choice NTUA Wireless, Geoverse Fixed United States Commnet, Choice, Choice NTUA Wireless, Deploycom Carrier Services United States Commnet, Essextel Managed Services United States Choice Renewable Energy (1) Solar India Vibrant Energy |
REVENUE RECOGNITION AND RECEI_2
REVENUE RECOGNITION AND RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
REVENUE RECOGNITION AND RECEIVABLES | |
Summary of contracts asset and liabilities | Contract assets and liabilities consisted of the following (amounts in thousands) March 31, 2021 December 31, 2020 $ Change % Change Contract asset – current $ 3,044 $ 2,478 $ 566 23 % Contract asset – noncurrent 1,141 910 231 25 % Contract liability – current (17,159) (18,544) 1,385 7 % Contract liability – noncurrent (2,255) (2,193) (62) (3) % Net contract liability $ (15,229) $ (17,349) $ 2,120 12 % |
Schedule of activity in allowances for credit losses | Three months ended March 31, 2021 Three months ended March 31, 2020 Balance at beginning of period $ 12,121 $ 12,724 Current period provision for expected losses 1,122 1,260 Write-offs charged against the allowance (354) (1,525) Recoveries collected 124 208 Balance at end of period $ 13,013 $ 12,667 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LEASES | |
Summary of components of lease expense | The components of lease expense were as follows (in thousands): March 31, 2021 March 31, 2020 Operating lease cost: Operating lease cost $ 4,225 $ 4,047 Short-term lease cost 408 543 Variable lease cost 1,065 803 Total operating lease cost $ 5,698 $ 5,393 Finance lease cost: Amortization of right-of-use asset $ 574 $ 571 Variable costs 196 272 Total finance lease cost $ 770 $ 843 |
Summary of weighted-average remaining lease term and discount rate | The weighted average remaining lease terms and discount rates as of March 31, 2021 and December 31, 2020 are noted in the table below: March 31, 2021 December 31, 2020 Weighted-average remaining lease term Operating leases 5.8 years 5.9 years Financing leases 10.6 years 10.9 years Weighted-average discount rate Operating leases 4.9% 5.0% Financing leases 4.2% 3.3% |
Summary of maturities of operating lease liabilities | Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands): Operating Leases Financing Leases 2021 (excluding the three months ended March 31, 2021) $ 11,043 $ 377 2022 14,479 502 2023 12,086 502 2024 11,033 380 2025 8,133 281 Thereafter 13,638 522 Total lease payments 70,412 2,564 Less imputed interest (9,619) (339) Total $ 60,793 $ 2,225 Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands): Operating Leases Financing Leases 2021 $ 14,877 $ 334 2022 14,202 333 2023 11,799 333 2024 10,633 211 2025 7,816 — Thereafter 13,094 — Total lease payments 72,421 1,211 Less imputed interest (10,097) (82) Total $ 62,324 $ 1,129 |
Summary of maturities of finance lease liabilities | Operating Leases Financing Leases 2021 (excluding the three months ended March 31, 2021) $ 11,043 $ 377 2022 14,479 502 2023 12,086 502 2024 11,033 380 2025 8,133 281 Thereafter 13,638 522 Total lease payments 70,412 2,564 Less imputed interest (9,619) (339) Total $ 60,793 $ 2,225 Operating Leases Financing Leases 2021 $ 14,877 $ 334 2022 14,202 333 2023 11,799 333 2024 10,633 211 2025 7,816 — Thereafter 13,094 — Total lease payments 72,421 1,211 Less imputed interest (10,097) (82) Total $ 62,324 $ 1,129 |
DISPOSITIONS (Tables)
DISPOSITIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
DISPOSITIONS AND PLATFORM INVESTMENTS | |
Schedule of assets and liabilities transferred | Consideration Received $ 35,218 Assets and liabilities disposed Current assets 4,899 Property, plant and equipment 45,891 Other assets 439 Current liabilities (759) Net assets disposed $ 50,470 Consideration less net assets disposed (15,252) Foreign currency losses reclassified from accumulated other comprehensive income 6,258 Loss on sale 21,510 Transaction costs 1,283 Loss on sale including transaction costs $ (22,793) |
FAIR VALUE MEASUREMENTS AND I_2
FAIR VALUE MEASUREMENTS AND INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE MEASUREMENTS AND INVESTMENTS | |
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 March 31, 2021 and December 31, 2020 are summarized as follows (in thousands): March 31, 2021 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,955 — — 2,955 Other investments — — 2,110 2,110 Interest rate swap — (126) — (126) Total assets and liabilities measured at fair value $ 2,955 $ 254 $ 2,110 $ 5,319 December 31, 2020 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,785 — — 2,785 Other investments — — 13,357 13,357 Interest rate swap — (157) — (157) Total assets and liabilities measured at fair value $ 2,785 $ 223 $ 13,357 $ 16,365 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
RETIREMENT PLANS | |
Schedule of components of the plan's net periodic pension cost | Three months ended March 31, 2021 March 31, 2020 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 54 $ 35 $ 423 $ 32 Non-operating expense Interest cost 572 41 879 45 Expected return on plan assets (687) — (1,158) — Actuarial (gain)/ loss — — (7) (15) Net periodic pension expense (benefit) $ (61) $ 76 $ 137 $ 62 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 21,821 $ 2,860 $ — $ — $ 24,681 Fixed 58,748 6,370 — — 65,118 Carrier Services 1,883 18,736 — — 20,619 Other 218 — — — 218 Total Communication Services Revenue 82,670 27,966 — — 110,636 Other Renewable Energy — — 418 — 418 Managed Services 1,150 — — — 1,150 Construction — 12,306 — — 12,306 Total Other Revenue 1,150 12,306 418 — 13,874 Total Revenue 83,820 40,272 418 — 124,510 Depreciation and amortization 13,826 5,193 188 1,301 20,508 Non-cash stock-based compensation 37 15 22 1,262 1,336 Operating income (loss) 13,116 (534) (662) (8,571) 3,349 For the Three Months Ended March 31, 2020 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 20,230 $ 2,403 $ — $ — $ 22,633 Fixed 57,741 4,825 — — 62,566 Carrier Services 2,298 20,071 — — 22,369 Other 336 — — — 336 Total Communication Services Revenue 80,605 27,299 — — 107,904 Other Renewable Energy — — 1,322 — 1,322 Managed Services 1,679 — — 1,679 Total Other Revenue 1,679 — 1,322 — 3,001 Total Revenue 82,284 27,299 1,322 — 110,905 Depreciation and amortization 14,315 5,886 614 1,703 22,518 Non-cash stock-based compensation (37) — — 1,197 1,160 Operating income (loss) 13,477 2,193 (456) (7,915) 7,299 (1) Corporate and Other items refer to corporate overhead costs and consolidating adjustments |
Schedule of segment balance sheet data and capital expenditures | Selected balance sheet data for each of the Company’s segments as of March 31, 2021 and December 31, 2020 consists of the following (in thousands): International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated March 31, 2021 Cash, Cash equivalents, and Investments $ 40,505 $ 29,389 $ 5,822 $ 15,543 $ 91,259 Total current assets 100,470 67,739 9,716 17,352 195,277 Fixed assets, net 448,690 67,829 — 11,552 528,071 Goodwill 25,421 35,269 — — 60,690 Total assets 634,344 302,966 22,369 98,043 1,057,722 Total current liabilities 77,100 33,216 356 17,084 127,756 Total debt 71,923 10,814 — — 82,737 December 31, 2020 Cash, Cash equivalents, and Investments $ 45,848 $ 26,921 $ 4,311 $ 26,845 $ 103,925 Total current assets 107,315 65,806 39,057 27,887 240,065 Fixed assets, net 449,888 73,717 — 12,857 536,462 Goodwill 25,421 35,270 — — 60,691 Total assets 642,834 265,797 39,045 136,035 1,083,711 Total current liabilities 80,875 43,200 1,038 22,815 147,928 Total debt 72,823 — — — 72,823 Capital Expenditures International US Renewable Corporate and Three months ended March 31, Telecom Telecom Energy Other (1) Consolidated 2021 $ 10,506 $ 14,939 $ — $ 235 $ 25,680 2020 10,465 1,972 720 904 14,061 (1) Corporate and other items refer to corporate overhead costs and consolidating adjustments |
ORGANIZATION AND BUSINESS OPE_3
ORGANIZATION AND BUSINESS OPERATIONS (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
ORGANIZATION AND BUSINESS OPERATIONS | |
Number of Operating Segments | 3 |
REVENUE RECOGNITION AND RECEI_3
REVENUE RECOGNITION AND RECEIVABLES - Contract Assets and Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Contract Assets and Liabilities | |
Contract Asset - current | $ 2,478 |
Change in contract asset - current | 566 |
Contract Asset - current | $ 3,044 |
% of change in contract asset - current | 23.00% |
Contract asset, noncurrent | $ 910 |
Change in contract asset - noncurrent | 231 |
Contract asset, noncurrent | $ 1,141 |
% of change in contract asset - noncurrent | 25.00% |
Contract liability- current | $ (18,544) |
Change in contract liabilities - current | 1,385 |
Contract liability- current | $ (17,159) |
% of change in contract liabilities - current | 7.00% |
Contract liability- noncurrent | $ (2,193) |
Change in contract liabilities - noncurrent | (62) |
Contract liability- noncurrent | $ (2,255) |
% of change in contract liabilities - Noncurrent | (3.00%) |
Net contract liability | $ (17,349) |
Change in net contract liability | 2,120 |
Net contract liability | $ (15,229) |
% of change in net contract liability | 12.00% |
Revenue recognized related to contract liability | $ 15,100 |
Amortization of contract assets | 700 |
Revenue recognized in the period related to performance obligations that were satisfied or partially satisfied in previous periods | $ 0 |
Retail revenue period for billing postpaid customers in advance | 1 month |
REVENUE RECOGNITION AND RECEI_4
REVENUE RECOGNITION AND RECEIVABLES - Contract Acquisition Costs (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Contract Acquisition Costs | |
Amortization of contract acquisition cost | $ 0.6 |
Prepayments and other current assets | |
Contract Acquisition Costs | |
Short-term contract acquisition costs | 1.7 |
Other Assets | |
Contract Acquisition Costs | |
Long-term contract acquisition costs | $ 1.5 |
REVENUE RECOGNITION AND RECEI_5
REVENUE RECOGNITION AND RECEIVABLES - Remaining Performance Obligations - (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 299 | |
Percentage of performance obligations to be satisfied | 60.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 273 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 24 months | |
Right to invoice and wholly unsatisfied performance obligation practical expedients | true |
REVENUE RECOGNITION AND RECEI_6
REVENUE RECOGNITION AND RECEIVABLES - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable | |||
Gross accounts receivable | $ 78,000 | $ 67,100 | |
Allowance for credit loss | 13,000 | 12,100 | |
Customer receivable, current | 2,365 | 1,227 | |
Customer receivable - long term | 21,056 | 9,614 | |
Retained earnings | 516,897 | 516,901 | |
FirstNet agreement | |||
Accounts Receivable | |||
Customer receivable | 23,400 | 10,800 | |
Customer receivable, current | 2,400 | 1,200 | |
Customer receivable - long term | $ 21,000 | $ 9,600 | |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | |||
Accounts Receivable | |||
Retained earnings | $ 0 |
REVENUE RECOGNITION AND RECEI_7
REVENUE RECOGNITION AND RECEIVABLES - Allowance for Credit Losses Rollforward - (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUE RECOGNITION AND RECEIVABLES | ||
Beginning Balance | $ 12,121 | $ 12,724 |
Current period provision for expected losses | 1,122 | 1,260 |
Write-offs charged against the allowance | (354) | (1,525) |
Recoveries collected | 124 | 208 |
Ending Balance | $ 13,013 | $ 12,667 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Mar. 31, 2021 |
Minimum | |
LEASES | |
Operating lease, lease term | 3 years |
Finance lease, lease term | 3 years |
Maximum | |
LEASES | |
Operating lease, lease term | 10 years |
Finance lease, lease term | 10 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense and Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
LEASES | |||
Operating lease cost | $ 4,225 | $ 4,047 | |
Short-term lease cost | 408 | 543 | |
Variable lease cost | 1,065 | 803 | |
Total operating lease cost | 5,698 | 5,393 | |
Payments for lease liabilities | 3,500 | 3,500 | |
Lease liabilities arising from ROU | 2,200 | ||
Finance lease cost: | |||
Amortization of right-of-use asset | 574 | 571 | |
Variable costs | 196 | 272 | |
Total finance lease cost | 770 | $ 843 | |
Finance leases cost included in property, plant and equipment | 26,500 | $ 25,400 | |
Accumulated amortization related to finance leases | 10,100 | 9,500 | |
Principal payments, finance lease liabilities | 100 | ||
Additional finance lease liabilities recognized | 1,100 | ||
Total | 2,225 | $ 1,129 | |
Finance lease liability, current | $ 400 |
LEASES - Weighted average remai
LEASES - Weighted average remaining lease terms and discount rates (Details) | Mar. 31, 2021 | Dec. 31, 2020 |
LEASES | ||
Operating leases, weighted average remaining lease term | 5 years 9 months 18 days | 5 years 10 months 24 days |
Financing leases, weighted average remaining lease term | 10 years 7 months 6 days | 10 years 10 months 24 days |
Operating leases, weighted average discount rate | 4.90% | 5.00% |
Financing leases, weighted average discount rate | 4.20% | 3.30% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
LEASES | ||
2021 (excluding the three months ended March 31, 2021) | $ 11,043 | |
Next Twelve Months | 14,479 | $ 14,877 |
Year Two | 12,086 | 14,202 |
Year Three | 11,033 | 11,799 |
Year Four | 8,133 | 10,633 |
Thereafter | 13,638 | |
Year Five | 7,816 | |
Thereafter | 13,094 | |
Total lease payments | 70,412 | 72,421 |
Less imputed interest | (9,619) | (10,097) |
Total | $ 60,793 | $ 62,324 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | atni:LeaseLiabilityCurrent atni:LeaseLiabilityNoncurrent | atni:LeaseLiabilityCurrent atni:LeaseLiabilityNoncurrent |
Finance lease liability | ||
2021 (excluding the three months ended March 31, 2021) | $ 377 | |
Next Twelve Months | 502 | $ 334 |
Year two | 502 | 333 |
Year three | 380 | 333 |
Year four | 281 | 211 |
Thereafter | 522 | |
Total lease payments | 2,564 | 1,211 |
Less imputed interest | (339) | (82) |
Total | $ 2,225 | $ 1,129 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | atni:LeaseLiabilityCurrent atni:LeaseLiabilityNoncurrent | atni:LeaseLiabilityCurrent atni:LeaseLiabilityNoncurrent |
DISPOSITIONS - Disposition - Vi
DISPOSITIONS - Disposition - Vibrant Energy (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Nov. 19, 2020 | |
Assets and liabilities disposed | ||||||
Current assets | $ 34,735 | $ 34,735 | ||||
Current liabilities | (717) | (717) | ||||
Vibrant Energy Holdings Pte. Ltd | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Disposition | ||||||
Consideration received | $ 35,218 | |||||
Assets and liabilities disposed | ||||||
Current assets | 4,899 | |||||
Property, plant and equipment | 45,891 | |||||
Other assets | 439 | |||||
Current liabilities | (759) | |||||
Net assets disposed | 50,470 | |||||
Consideration less net assets disposed | (15,252) | |||||
Foreign currency losses reclassified from accumulated other comprehensive income | 6,258 | |||||
Loss on sale | 21,510 | |||||
Transaction costs | 1,283 | |||||
Loss on sale including transaction costs | (22,793) | |||||
Vibrant Energy Holdings Pte. Ltd | Held for sale | ||||||
Disposition | ||||||
Percentage of equity interest sold | 67.00% | |||||
Percentage of equity interest retained | 33.00% | |||||
Assets and liabilities disposed | ||||||
Loss on sale | $ 21,500 | |||||
Transaction costs | $ 700 | $ 600 | $ 1,300 | |||
Cash | 19,500 | |||||
Accounts receivable | 3,900 | |||||
Equity method investment | $ 11,800 | |||||
Earn out consideration receivable period | 24 months |
FAIR VALUE MEASUREMENTS AND I_3
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Recurring (Details) - Recurring basis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair value measurements | ||
Total assets and liabilities measured at fair value | $ 5,319 | $ 16,365 |
Certificate of deposit | ||
Fair value measurements | ||
Cash and cash equivalents | 380 | 380 |
Money market funds | ||
Fair value measurements | ||
Cash and cash equivalents | 2,955 | 2,785 |
Other investments | ||
Fair value measurements | ||
Investments | 2,110 | 13,357 |
Interest rate swap | ||
Fair value measurements | ||
Derivative liabilities | (126) | (157) |
Level 1 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 2,955 | 2,785 |
Level 1 | Money market funds | ||
Fair value measurements | ||
Cash and cash equivalents | 2,955 | 2,785 |
Level 2 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 254 | 223 |
Level 2 | Certificate of deposit | ||
Fair value measurements | ||
Cash and cash equivalents | 380 | 380 |
Level 2 | Interest rate swap | ||
Fair value measurements | ||
Derivative liabilities | (126) | (157) |
Level 3 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 2,110 | 13,357 |
Level 3 | Other investments | ||
Fair value measurements | ||
Investments | $ 2,110 | $ 13,357 |
FAIR VALUE MEASUREMENTS AND I_4
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Fair value measurements | |||||
(Gain) loss on equity investments | $ (2,188) | $ 1,775 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 1,530 | 4,220 | |||
Privately Held Investment | |||||
Fair value measurements | |||||
Payments to acquire equity method investment | 3,000 | $ 2,800 | |||
Ownership percentage | 24.00% | ||||
Carrying value | 16,500 | $ 11,000 | |||
Decrease in carrying value of equity method investment | 600 | ||||
(Gain) loss on equity investments | 400 | ||||
Currency losses | 200 | ||||
Gain from conversion | 2,500 | ||||
India solar operations | |||||
Fair value measurements | |||||
Payments to acquire equity method investment | $ 1,200 | ||||
Carrying value | 12,700 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ 300 | ||||
Other Assets | Privately Held Investment | |||||
Fair value measurements | |||||
Carrying value | 17,300 | 17,900 | |||
Other investments | |||||
Fair value measurements | |||||
Other investments measured using level 3 inputs | 11,200 | ||||
Transferring out of level 3 | 11,000 | ||||
Fair value of the remaining level 3 investments | 200 | ||||
Cash distributions | 300 | ||||
Income recognized | 100 | ||||
Other investments | Renewable energy partnership | |||||
Fair value measurements | |||||
Investment Tax Credit | $ 12,000 | ||||
Equity investments | 2,100 | 2,300 | |||
Investment cost | $ 14,400 | ||||
Carrying Value | |||||
Fair value measurements | |||||
Long-term debt | 82,700 | 72,800 | |||
Carrying Value | Other Assets | |||||
Fair value measurements | |||||
Investments | 1,300 | 1,300 | |||
Level 2 | Estimated Fair Value | |||||
Fair value measurements | |||||
Long-term debt | $ 83,100 | $ 73,300 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | Mar. 26, 2020USD ($) | Apr. 10, 2019USD ($) | May 22, 2017USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 01, 2016USD ($) |
Long-term debt | |||||||||
Current portion of Customer receivable credit facility | $ 1,101 | ||||||||
Outstanding borrowings | 82,737 | $ 72,823 | |||||||
Borrowings | 10,814 | ||||||||
One Communications Debt | |||||||||
Long-term debt | |||||||||
Financing costs | $ 300 | ||||||||
Outstanding debt | 12,500 | ||||||||
Unamortized financing costs | 100 | ||||||||
One Communications Debt | Minimum | |||||||||
Long-term debt | |||||||||
Percentage of notional amount required for hedging arrangement | 30.00% | ||||||||
One Communications Debt | Minimum | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.50% | ||||||||
One Communications Debt | Maximum | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.75% | ||||||||
Viya Debt | |||||||||
Long-term debt | |||||||||
Term loan assumed | $ 60,000 | ||||||||
Net leverage ratio | 3.5 | ||||||||
Stated interest rate | 4.00% | 4.00% | |||||||
Financing costs | $ 900 | ||||||||
Intercompany debt limit | $ 75,000 | ||||||||
Outstanding debt | 60,000 | ||||||||
Unamortized financing costs | 500 | ||||||||
Revolver loan | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||
Remaining borrowing capacity | 184,000 | ||||||||
Net leverage ratio | 1.75 | ||||||||
Net leverage ratio, if qualifying event | 3.25 | ||||||||
Borrowings outstanding | 0 | ||||||||
Revolver loan | Credit facility | Minimum | |||||||||
Long-term debt | |||||||||
Commitment fee (as a percent) | 0.15% | ||||||||
Revolver loan | Credit facility | Minimum | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||
Revolver loan | Credit facility | Minimum | Base rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 0.25% | ||||||||
Revolver loan | Credit facility | Maximum | |||||||||
Long-term debt | |||||||||
Commitment fee (as a percent) | 0.375% | ||||||||
Net leverage ratio | 2.75 | ||||||||
Revolver loan | Credit facility | Maximum | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.25% | ||||||||
Revolver loan | Credit facility | Maximum | Base rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||
Letter of credit sub-facility | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 75,000 | ||||||||
Performance letters of credit issued and outstanding | 16,000 | ||||||||
Swingline sub-facility | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 10,000 | ||||||||
Base rate before one-week or one-month LIBOR (as a percent) | 1.00% | ||||||||
Swingline sub-facility | Credit facility | Federal Funds Effective Rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||
Term loans | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||
Commnet Finance | Senior secured delayed draw term loan | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 75,000 | ||||||||
Commnet Finance | Senior secured delayed draw term loan | Receivable credit facility | |||||||||
Long-term debt | |||||||||
Remaining borrowing capacity | 64,200 | ||||||||
Current portion of Customer receivable credit facility | 1,100 | ||||||||
Outstanding borrowings | 10,800 | ||||||||
Financing costs | 900 | ||||||||
Amortization of financing costs | 800 | ||||||||
Commnet Finance | Senior secured delayed draw term loan | Receivable credit facility | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.50% | ||||||||
Commnet Finance | Senior secured delayed draw term loan | Receivable credit facility | Base rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 1.50% | ||||||||
Cash flow hedge | Interest rate swap | |||||||||
Long-term debt | |||||||||
Notional amount | $ 7,100 | $ 11,000 | |||||||
Interest rate (as a percent) | 1.874% |
GOVERNMENT GRANTS (Details)
GOVERNMENT GRANTS (Details) $ in Thousands | Nov. 16, 2020USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($)itemMW | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)item | Dec. 31, 2018USD ($) |
Government Grants | |||||||
Revenue | $ 124,510 | $ 110,905 | |||||
Universal Service Fund programs | |||||||
Government Grants | |||||||
Number of fund disbursement programs | item | 4 | ||||||
High-Cost Support Program | Grant Reduction During First Year | |||||||
Government Grants | |||||||
Amount of reduction in grant amount awarded | $ 10,900 | ||||||
High-Cost Support Program | US Telecom | |||||||
Government Grants | |||||||
Revenue | $ 300 | 300 | |||||
High-Cost Support Program | International Telecom | |||||||
Government Grants | |||||||
Revenue | 4,100 | 4,100 | |||||
Grant Funds Awarded | $ 8,500 | $ 16,400 | |||||
Grant fund term | 10 years | 10 years | |||||
High-Cost Support Program | International Telecom | Grant Reduction During First Year | |||||||
Government Grants | |||||||
Ratio of reduction in grant amount | 0.67 | ||||||
High-Cost Support Program | International Telecom | Grant Reduction During Second Year | |||||||
Government Grants | |||||||
Ratio of reduction in grant amount | 0.33 | ||||||
Amount of reduction in grant amount awarded | $ 5,500 | ||||||
High-Cost Support Program | International Telecom | Maximum | |||||||
Government Grants | |||||||
Proposed grant award | $ 18,700 | ||||||
E-Rate, Lifeline and Rural Health Care Support Programs | |||||||
Government Grants | |||||||
Revenue | 2,100 | 2,200 | |||||
Network Connectivity for Eligible Communities | |||||||
Government Grants | |||||||
Grant Funds Awarded | 6,500 | $ 16,800 | |||||
Offsetting operating activities | 1,300 | ||||||
Construction obligation completed | $ 10,200 | ||||||
Construction obligation yet to be completed | $ 13,100 | ||||||
CARES Act | |||||||
Government Grants | |||||||
Grant Funds Awarded | 2,400 | 16,300 | |||||
Proceeds from grant funds awarded | 18,700 | ||||||
Grant funds used to offset fixed asset related costs | 18,400 | ||||||
Grant funds used to offset operating expenses | $ 300 | ||||||
Tribal Bidding Credit | |||||||
Government Grants | |||||||
Wireless service spectrum (in Mhz) | MW | 600 | ||||||
Revenue | 7,400 | ||||||
Grant funds used to offset fixed asset related costs | $ 6,100 | ||||||
Grant funds used to offset operating expenses | 1,300 | ||||||
Offsetting operating activities | 300 | ||||||
Amount spent on capital expenditure | 6,100 | ||||||
Connect America Fund Phase II Auction | |||||||
Government Grants | |||||||
Revenue | $ 1,900 | $ 1,900 | |||||
Grant Funds Awarded | $ 79,900 | ||||||
Grant fund term | 10 years | ||||||
CBRS Auction | |||||||
Government Grants | |||||||
Initial term of licenses | 10 years | ||||||
Payment for PALs | $ 20,400 | ||||||
RDOF | |||||||
Government Grants | |||||||
Grant funds expected to be awarded | $ 20,100 | ||||||
Grant fund term | 10 years | ||||||
Number of households to receive broadband coverage | item | 10,000 |
RETIREMENT PLANS - Net Periodic
RETIREMENT PLANS - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Components of the plan's net periodic pension cost | |||
Projected benefit obligation | $ 15,600 | ||
Plan Net Assets | $ 15,600 | ||
Pension Plans | |||
Components of the plan's net periodic pension cost | |||
Service cost | $ 54 | $ 423 | |
Interest cost | 572 | 879 | |
Expected return on plan assets | (687) | (1,158) | |
Actuarial (gain)/ loss | (7) | ||
Net periodic pension expense (benefit) | (61) | 137 | |
Postretirement Benefits | |||
Components of the plan's net periodic pension cost | |||
Service cost | 35 | 32 | |
Interest cost | 41 | 45 | |
Actuarial (gain)/ loss | (15) | ||
Net periodic pension expense (benefit) | $ 76 | $ 62 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
INCOME TAXES | ||
Effective tax rate (as a percent) | 6.50% | 31.80% |
Interest on unrecognized tax position | $ 0.5 | $ 0.5 |
Change in valuation allowance | 0.4 | |
Benefit (net) related to remeasurement of existing losses | $ 0.3 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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) | 5,000 | 5,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment reporting | |||
Number of reportable segments | segment | 3 | ||
Revenue | |||
Revenue | $ 124,510 | $ 110,905 | |
Depreciation and amortization | 20,508 | 22,518 | |
Non-cash stock-based compensation | 1,336 | 1,160 | |
Operating income (loss) | 3,349 | 7,299 | |
Segment Assets | |||
Cash, Cash equivalents, and Investments | 91,259 | $ 103,925 | |
Total current assets | 195,277 | 240,065 | |
Fixed assets, net | 528,071 | 536,462 | |
Goodwill | 60,690 | 60,691 | |
Total assets | 1,057,722 | 1,083,711 | |
Total current liabilities | 127,756 | 147,928 | |
Total debt | 82,737 | 72,823 | |
Capital Expenditures | |||
Capital expenditures | 25,680 | 14,061 | |
Communication services | |||
Revenue | |||
Revenue | 110,636 | 107,904 | |
Mobility | |||
Revenue | |||
Revenue | 24,681 | 22,633 | |
Fixed | |||
Revenue | |||
Revenue | 65,118 | 62,566 | |
Carrier services | |||
Revenue | |||
Revenue | 20,619 | 22,369 | |
Other | |||
Revenue | |||
Revenue | 218 | 336 | |
Other | |||
Revenue | |||
Revenue | 13,874 | 3,001 | |
Renewable Energy | |||
Revenue | |||
Revenue | 418 | 1,322 | |
Managed Services | |||
Revenue | |||
Revenue | 1,150 | 1,679 | |
Construction | |||
Revenue | |||
Revenue | 12,306 | ||
Corporate and Other | |||
Revenue | |||
Depreciation and amortization | 1,301 | 1,703 | |
Non-cash stock-based compensation | 1,262 | 1,197 | |
Operating income (loss) | (8,571) | (7,915) | |
Segment Assets | |||
Cash, Cash equivalents, and Investments | 15,543 | 26,845 | |
Total current assets | 17,352 | 27,887 | |
Fixed assets, net | 11,552 | 12,857 | |
Total assets | 98,043 | 136,035 | |
Total current liabilities | 17,084 | 22,815 | |
Capital Expenditures | |||
Capital expenditures | 235 | 904 | |
International Telecom | Operating segments | |||
Revenue | |||
Revenue | 83,820 | 82,284 | |
Depreciation and amortization | 13,826 | 14,315 | |
Non-cash stock-based compensation | 37 | (37) | |
Operating income (loss) | 13,116 | 13,477 | |
Segment Assets | |||
Cash, Cash equivalents, and Investments | 40,505 | 45,848 | |
Total current assets | 100,470 | 107,315 | |
Fixed assets, net | 448,690 | 449,888 | |
Goodwill | 25,421 | 25,421 | |
Total assets | 634,344 | 642,834 | |
Total current liabilities | 77,100 | 80,875 | |
Total debt | 71,923 | 72,823 | |
Capital Expenditures | |||
Capital expenditures | 10,506 | 10,465 | |
International Telecom | Operating segments | Communication services | |||
Revenue | |||
Revenue | 82,670 | 80,605 | |
International Telecom | Operating segments | Mobility | |||
Revenue | |||
Revenue | 21,821 | 20,230 | |
International Telecom | Operating segments | Fixed | |||
Revenue | |||
Revenue | 58,748 | 57,741 | |
International Telecom | Operating segments | Carrier services | |||
Revenue | |||
Revenue | 1,883 | 2,298 | |
International Telecom | Operating segments | Other | |||
Revenue | |||
Revenue | 218 | 336 | |
International Telecom | Operating segments | Other | |||
Revenue | |||
Revenue | 1,150 | 1,679 | |
International Telecom | Operating segments | Managed Services | |||
Revenue | |||
Revenue | 1,150 | 1,679 | |
US Telecom | Operating segments | |||
Revenue | |||
Revenue | 40,272 | 27,299 | |
Depreciation and amortization | 5,193 | 5,886 | |
Non-cash stock-based compensation | 15 | ||
Operating income (loss) | (534) | 2,193 | |
Segment Assets | |||
Cash, Cash equivalents, and Investments | 29,389 | 26,921 | |
Total current assets | 67,739 | 65,806 | |
Fixed assets, net | 67,829 | 73,717 | |
Goodwill | 35,269 | 35,270 | |
Total assets | 302,966 | 265,797 | |
Total current liabilities | 33,216 | 43,200 | |
Total debt | 10,814 | ||
Capital Expenditures | |||
Capital expenditures | 14,939 | 1,972 | |
US Telecom | Operating segments | Communication services | |||
Revenue | |||
Revenue | 27,966 | 27,299 | |
US Telecom | Operating segments | Mobility | |||
Revenue | |||
Revenue | 2,860 | 2,403 | |
US Telecom | Operating segments | Fixed | |||
Revenue | |||
Revenue | 6,370 | 4,825 | |
US Telecom | Operating segments | Carrier services | |||
Revenue | |||
Revenue | 18,736 | 20,071 | |
US Telecom | Operating segments | Other | |||
Revenue | |||
Revenue | 12,306 | ||
US Telecom | Operating segments | Construction | |||
Revenue | |||
Revenue | 12,306 | ||
Renewable Energy | Operating segments | |||
Revenue | |||
Revenue | 418 | 1,322 | |
Depreciation and amortization | 188 | 614 | |
Non-cash stock-based compensation | 22 | ||
Operating income (loss) | (662) | (456) | |
Segment Assets | |||
Cash, Cash equivalents, and Investments | 5,822 | 4,311 | |
Total current assets | 9,716 | 39,057 | |
Total assets | 22,369 | 39,045 | |
Total current liabilities | 356 | $ 1,038 | |
Capital Expenditures | |||
Capital expenditures | 720 | ||
Renewable Energy | Operating segments | Other | |||
Revenue | |||
Revenue | 418 | 1,322 | |
Renewable Energy | Operating segments | Renewable Energy | |||
Revenue | |||
Revenue | $ 418 | $ 1,322 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Oct. 05, 2020item | Mar. 31, 2021USD ($) | Dec. 31, 2011USD ($) |
Contingency related to spectrum fees | |||
Commitments and contingencies | |||
Spectrum fees paid | $ 2.6 | ||
Litigation proceedings and disputes in Guyana | |||
Commitments and contingencies | |||
Number of competitors issued service licenses | item | 2 | ||
Legal claims regarding tax filings with the Guyana Revenue Authority | |||
Commitments and contingencies | |||
Future payments related to disputed tax assessments | $ 44.1 | ||
Accrued contingent liability | $ 5 | ||
Legal claims regarding tax filings with the Guyana Revenue Authority | Minimum | |||
Commitments and contingencies | |||
Percentage of return on investment ensured by the government of Guyana | 15.00% |