Atlantic Tele-Network Inc. Reports Second Quarter and First Half 2009 Results

Second Quarter Highlights:

-- Wireless revenue increased 47% year-over-year

-- Operating income was $18.1 million, or 30% of revenue

-- Net income decreases by 6% year-over-year as a result of early stage
acquisitions and transactional related expenses

-- Acquisition of Alltel properties progressing towards anticipated close later
this year
SALEM, Mass.--(Business Wire)--
Atlantic Tele-Network, Inc. (NASDAQ: ATNI) today reported results for the second
quarter and six months ended June 30, 2009.

Second Quarter Financial Results

For the three months ended June 30, 2009, revenue was $60.3million, 20% above
the $50.4 million reported for the second quarter of 2008 and an 8% sequential
increase over the first quarter. Wireless revenue increased 47% year-over-year
and 15% sequentially, driven by significant growth in the Company`s U.S.
domestic wireless business, which more than offset the year-over-year and
sequential decrease in international long distance revenue from the Company`s
Guyana operations. Revenue for 2008 included revenue from Bermuda Digital
Communications (BDC) beginning on May 15, 2008, the date the Company began
consolidating BDC`s operating results. BDC revenue, prior to consolidation, for
the second quarter and six months ended June 30, 2008 was approximately $3.3
million and $8.6 million, respectively.

Despite the significant increase in revenue, operating income remained unchanged
at $18.1 million as a result of costs associated with the revenue growth, as
well as:

* $1.5 million of operating losses at two earlier stage businesses acquired in
the third quarter of 2008
* $0.8 million of costs associated with the previously announced termination of
our digital television services in the U.S. Virgin Islands (USVI)
* $0.4 million related to the Company`s pending acquisition of the Alltel
properties
* The reduction in high-margin international long distance revenue

Net income attributable to ATN`s stockholders1 was $9.6 million for the quarter
compared to $10.2 million for the same period in 2008 and $8.8 million for the
first quarter of 2009. On a per share basis, net income attributable to ATN`s
stockholders decreased 6% to $0.63 per diluted share from $0.67 per diluted
share for last year`s second quarter but was up 9% from the $0.58 per diluted
share earned in the first quarter of 2009.

Commenting on second quarter results, Michael T. Prior, Chief Executive Officer
said, "This was another quarter of solid financial and operating performance for
ATN, reflecting the resilience of our network and our ability to provide
attractive alternatives to customers in underserved domestic and international
markets. While we are not immune to the current economic environment, we
succeeded in posting strong revenue growth resulting from our expanded U.S.
network footprint and higher volumes of voice and data traffic. Operating income
was $18.1 million, or 30% of revenue, despite the costs of expanding our network
and terminating our television services in the USVI.Although the early stage
businesses we acquired in the second half of 2008 have also negatively impacted
operating income, we are pleased overall with the strong growth in revenue and
believe we are increasing the size of our platform for future cash flow and
profit growth."

Recent Corporate Development

On June 9, 2009 the Company announced a definitive agreement to acquire certain
wireless assets from Verizon Wireless, which were part of Alltel Corporation
prior to its acquisition by Verizon Wireless. Under the terms of the agreement,
the Company will acquire wireless properties, including wireless spectrum
licenses and network assets serving approximately 800,000 subscribers primarily
in rural areas across Georgia, North Carolina, South Carolina, Illinois, Ohio
and Idaho for approximately $200 million in cash. Initial expectations are for
this transaction to add approximately $450 million in revenue and be accretive
upon completion. The acquisition is subject to customary closing conditions and
regulatory approvals, including the receipt of required consents and approvals
from the Department of Justice and the Federal Communications Commission.

"This acquisition is an ideal fit for the Company because it greatly increases
our U.S. wireless network footprint and builds on the services we currently
offer. It also provides us with greater revenue diversification and significant
scale," Mr. Prior said. "Upon the completion of this transaction, we expect to
have more than one million retail wireless subscribers in the U.S. and
internationally. We will be offering our new customers the plans and
differentiated service offerings they currently enjoy, plus a variety of new
choices that have been popular with consumers in our other domestic markets.We
are confident that this transaction will be very positive for all of our
constituents.Please note, however, that transactional expenses are expected to
increase significantly in the next two quarters and will reduce earnings until
the acquisition closes.Once closed, we expect the acquisition to be
significantly accretive to earnings."

Second Quarter 2009 Operating Highlights

The following operating results for the quarter ended June 30, 2009 are compared
against the same period in 2008 unless otherwise indicated.

Wireless Revenue

Wireless revenue increased 47%, to $36.5 million from $24.8 million. Our U.S.
rural wireless business increased revenue by 53%, to $25.8 million from $16.9
million benefiting from our ongoing investment in new base stations and the
growth in recurring voice and data traffic. We ended the second quarter with a
total of 537 base stations in our U.S. network, up from 367 base stations at the
end of last year`s second quarter and 484 base stations at the end of the 2009
first quarter. Of the increase in wireless revenue, $2.6 million was
attributable to the consolidation of the operating results of BDC for the entire
second quarter of 2009 as compared to only a portion of the second quarter of
2008. Wireless revenue in Guyana increased by $0.2 million. At the end of the
second quarter, we had approximately 266,000 subscribers in Guyana, below the
277,000 we had at the end of last year`s second quarter, but up from 248,000 as
of December 31, 2008.

Local Telephone and Data Revenue

Local telephone and data revenue increased 10% to $13.5 million compared to
$12.3 million in 2008. Sovernet`s local telephone and data revenue increased
27%, to $4.7 million from $3.7 million in 2008, mainly due to its acquisition of
ION in August 2008. Local telephone and data revenue generated by our Guyana
operations increased 3% to $7.6 million compared to $7.4 million in 2008, while
access lines increased 5% to 142,000 from 135,000. Data revenue at our Virgin
Islands subsidiary remained fairly stable.

International Long Distance Revenue

International long distance revenue, all of which is generated by our GT&T
subsidiary, declined 20% to $9.9 million from $12.4 million in 2008. We believe
this decrease is a result of a considerable increase in illegal bypass
activities in the quarter resulting in lost revenue opportunities, as well as an
overall reduction in call volume into Guyana attributable to the current
difficult economic environment.

First Half 2009 Results

For the six months ended June 30, 2009, revenue was $116.3million, up 21% from
the $96.0 million reported for last year`s first half. Net income attributable
to ATN`s stockholders1 was $18.4 million for the year, as compared to $18.1
million for the same period in 2008, an increase of $0.3 million or 2%. On a per
share basis, net income attributable to ATN`s stockholders1 increased by 3% to
$1.21 per diluted share from $1.18 per diluted share for the six months ended
June 30, 2008.

Conference Call Information

Atlantic Tele-Network will host a conference call tomorrow, Friday, July 31,
2009 at 10:00 a.m. Eastern Time (ET) to discuss its second quarter results for
2009. The call will be hosted by Michael Prior, President and Chief Executive
Officer, and Justin Benincasa, Chief Financial Officer. The dial-in numbers are
US/Canada: (800) 920-4315 and International: (212) 231-2901. A replay of the
call will be available from 12:30 p.m. (ET) July 31, 2009 until 12:30 p.m. (ET)
on August 7, 2009. The replay dial-in numbers are US/Canada: (800) 633-8284 and
International: (402) 977-9140, access code 21432610.

About Atlantic Tele-Network

Atlantic Tele-Network, Inc. (NASDAQ:ATNI) is a telecommunications company
operating high quality digital wireless, wireline, and both terrestrial and
submarine fiber optic networks in North America, South America and the
Caribbean. Its principal subsidiaries include: Commnet Wireless, LLC, which
provides voice and data wireless roaming services for U.S. and international
carriers in rural areas throughout the United States; Guyana Telephone &
Telegraph Company, Ltd., which is the national telephone service provider for
all local, long-distance and international services in Guyana, as well as a
wireless service provider; Bermuda Digital Communications, Ltd., which is the
leading provider of wireless voice and data services in Bermuda operating as
Cellular One, and also an early-stage wireless provider in Turks & Caicos
through its IslandCom subsidiary; Sovernet, Inc., which provides wireline voice
and data services to businesses and homes in New England and high capacity
communications network transport services in New York State through its ION
subsidiary; and Choice Communications, LLC, which provides wireless broadband
services in the U.S. Virgin Islands.

Cautionary Language Concerning Forward-Looking Statements

This news release contains forward-looking statements relating to, among other
matters, the future financial performance and results of operations of the
Company; the proposed transaction with Verizon Wireless, including whether the
transaction will be completed and the expected timetable for such completion;
demand for our services and industry trends; the pace of our network expansion
and improvement, including our realization of the benefits of these investments;
and management`s plans and strategy for the future. These forward-looking
statements are based on estimates, projections, beliefs, and assumptions and are
not guarantees of future events or results. Actual future events and results
could differ materially from the events and results indicated in these
statements as a result of many factors, including, among others, (1) the ability
of ATN to secure financing for the balance of the purchase price of the Alltel
acquisition, which is dependent on market conditions; there can be no assurances
that such financing will be available to ATN at all or on terms that are
favorable to ATN; (2) the ability of ATN to operate a retail wireless business
and integrate these operations into its existing operations; (3) the ability to
receive the requisite regulatory consents and approvals to consummate the
transaction; (4) the general performance of the acquired Alltel operations; (5)
significant political and regulatory risk facing our exclusive license to
provide local exchange and international voice and data services in Guyana; (6)
any significant decline in the price or volume, including bypass activities, of
international long distance calls to Guyana; (7) the regulation of rates that
GT&T may charge for local wireline telephone service; (8) significant tax
disputes between GT&T and the Guyanese tax authorities; (9) the derivation of a
significant portion of our U.S. wireless revenue from a small number of
customers and the extent to which our wholesale customers build or acquire
overlapping networks; (10) our ability to maintain favorable roaming
arrangements, including the rates Commnet charges its wholesale customers; (11)
the current global economic recession, along with difficult and volatile
conditions in the capital and credit markets; (12) increased competition; (13)
economic, political and other risks facing our foreign operations; (14)
regulatory changes affecting our businesses; (15) the loss of certain FCC
licenses; (16) rapid and significant technological changes in the
telecommunications industry; (17) our reliance on a limited number of key
suppliers and vendors for timely supply of equipment and services relating to
our network infrastructure; (18) any loss of any key members of management; (19)
the adequacy and expansion capabilities of our network capacity and customer
service system to support our customer growth; (20) dependence of our wireless
and wireline revenue on the reliability and performance of our network
infrastructure; (21) the occurrence of severe weather and natural catastrophes;
and (22) our ability to realize the value that we believe exists in businesses
that we acquire. These and other additional factors that may cause actual future
events and results to differ materially from the events and results indicated in
the forward-looking statements above are set forth more fully under Item 1A
"Risk Factors" of the Company`s Annual Report on Form 10-K for the year ended
December 31, 2008 and the Company`s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2009, which are on file with the SEC. The Company
undertakes no obligation to update these forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors that may
affect such forward-looking statements.

ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Balance Sheets
(in Thousands)

June 30, December 31,
2009 2008
Assets:
Cash and Cash Equivalents $ 90,210 $ 79,665
Other Current Assets 41,022 51,656

Total Current Assets 131,232 131,321

Fixed Assets, net 205,100 198,230
Goodwill and Other Intangible Assets, net 76,701 76,351
Other Assets 12,004 13,919

Total Assets $ 425,037 $ 419,821

Liabilities and Stockholders` Equity:
Current Liabilities $ 45,465 $ 47,912

Long Term Debt 72,978 73,311
Other Liabilities 33,750 36,938

Total Liabilities 152,193 158,161

Stockholders` Equity 272,844 261,660

Total Liabilities and Stockholders` Equity $ 425,037 $ 419,821

ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, Except per Share Data)

Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Revenue:
Wireless $ 36,515 $ 24,786 $ 68,240 $ 44,539
Local Telephone and Data 13,500 12,267 26,553 24,514
International Long Distance 9,878 12,387 20,279 24,942
Other Revenue 402 974 1,189 2,049

Total Revenue 60,295 50,414 116,261 96,044
Operating Expenses:
Termination and Access Fees 10,887 8,376 21,333 15,964
Internet and Programming 397 863 1,186 1,762
Engineering and Operations 7,511 5,930 14,457 11,785
Sales, Marketing and Customer Services 3,807 2,944 7,399 5,618
General and Administrative 9,787 6,819 18,003 12,702
Depreciation and Amortization 9,794 7,424 18,994 14,501

Total Operating Expenses 42,183 32,356 81,372 62,332

Operating Income 18,112 18,058 34,889 33,712
Other Income (Expense):
Interest Income (Expense), net (828 ) (254 ) (1,646 ) (338 )
Other Income 10 143 36 368

Other Income (Expense), net (818 ) (111 ) (1,610 ) 30

Income Before Income Taxes 17,294 17,947 33,279 33,742
Income Taxes 7,342 6,642 14,298 14,032

Income Before Equity in Earnings of Unconsolidated Affiliates 9,952 11,305 18,981 19,710
Equity in Earnings of Unconsolidated Affiliates - 272 - 735
Net Income 9,952 11,577 18,981 20,445
Less: Net Income Attributable to Non-Controlling Interests, net of tax (315 ) (1,373 ) (543 ) (2,374 )

Net Income Attributable to Atlantic Tele-Network, Inc. Stockholders $ 9,637 $ 10,204 $ 18,438 $ 18,071

Net Income Weighted Average Per Share Attributable to Atlantic Tele-Network, Inc. Stockholders
Basic $ 0.63 $ 0.67 $ 1.21 $ 1.19
Diluted $ 0.63 $ 0.67 $ 1.21 $ 1.18
Weighted Average Common Shares Outstanding
Basic 15,232 15,217 15,231 15,223
Diluted 15,282 15,260 15,267 15,274

ATLANTIC TELE-NETWORK, INC.
Unaudited Condensed Consolidated Cash Flow Statement
(in Thousands)

Six Months Ended June 30,
2009 2008

Net Income $ 18,981 $ 20,445
Depreciation and Amortization 18,994 14,501
Change in Working Capital 5,845 (17,769 )
Other 2,062 2,163

Net Cash Provided by Operating Activities 45,882 19,340

Capital Expenditures (27,541 ) (20,900 )
Acquisitions of Businesses, Net of Cash Acquired (24 ) (11,924 )
Other 2,956 4,711

Net Cash Used by Investing Activities (24,609 ) (28,113 )

Dividends Paid on Common Stock (5,483 ) (4,867 )
Distributions to Non-Controlling Interests (5,120 ) (1,620 )
Other (125 ) (860 )

Net Cash Used by Financing Activities (10,728 ) (7,347 )

Net Change in Cash and Cash Equivalents 10,545 (16,120 )

Cash and Cash Equivalents, Beginning of Period 79,665 71,173

Cash and Cash Equivalents, End of Period $ 90,210 $ 55,053

1 As a result of our adoption of Statement of Financial Accounting Standard No.
160, Non-Controlling Interests in Consolidated Financial Statements- an
Amendment of ARB No. 51, the financial statement line item that had been
entitled "Net income" under the previous reporting method is now entitled "Net
income attributable to Atlantic Tele-Network, Inc. Stockholders."

Atlantic Tele-Network, Inc.
Michael T. Prior, 978-619-1300
Chief Executive Officer
or
Justin D. Benincasa, 978-619-1300
Chief Financial Officer

Copyright Business Wire 2009

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