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EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

3 Months Ended

Mar. 31, 2024

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

11. EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

Earnings Per Share

The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands):


	Three months ended March 31,
	2024			2023
Numerator:
Net loss attributable to ATN International, Inc. stockholders- Basic		(6,315)			(5,885)
Less: Preferred dividends		(1,348)			(1,045)
Net Loss attributable to ATN International, Inc. common stockholders- Diluted	$	(7,663)		$	(6,930)

Denominator:
Weighted-average shares outstanding- Basic		15,437			15,768
Weighted-average shares outstanding- Diluted		15,437			15,768

Redeemable Noncontrolling Interests

In connection with certain acquisitions, the Company accounts for third-party non-controlling minority investments as redeemable noncontrolling interests, which consist of both redeemable common and, in some instances, preferred units, in its consolidated financial statements.

The common units contain put options allowing the holder to sell at a future date, the common units to a subsidiary of the Company at the then fair market value. The common units participate in the earnings and losses of the subsidiaries and are allocated their applicable share of earnings and losses. After the allocation of earnings and losses, the Company estimates the fair value of the common units and adjusts the book value of the common units to that estimated fair value.

The preferred units contain put options allowing the holder to sell at a future date, the preferred units to a subsidiary of the Company at a fixed price equal to face value of the units plus unpaid dividends. The preferred units hold a distribution preference over common units and carry a fixed dividend rate.

The put options for both the common and preferred units, if any, are nonrecourse to the Company and exercisable at the earlier of a future initial public offering of the subsidiary or certain dates beginning in 2026.

For the three months ended March 31, 2024 and 2023, the Company allocated losses of $3.5 million and $2.8 million, respectively, to the redeemable common units representing their proportionate share of operating losses. The Company then compared the book value of the common units to the fair value and the fair value exceeded the book value. As a result, the book value was increased by $0.9 million and $2.5 million during the three months ended March 31, 2024 and 2023, respectively.

The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for the three months ended March 31, 2024 and 2023 (in thousands):


	Redeemable Preferred Units			Redeemable Common Units			Total Redeemable Noncontrolling Interests
Balance, December 31, 2023	$	60,094		$	25,823		$	85,917
Accrued preferred dividend		1,348			—			1,348
Allocated net loss		—			(3,512)			(3,512)
Change in fair value		—			868			868
Balance, March 31, 2024	$	61,442		$	23,179		$	84,621


	Redeemable Preferred Units			Redeemable Common Units			Total Redeemable Noncontrolling Interests
Balance, December 31, 2022	$	55,152		$	37,317		$	92,469
Accrued preferred dividend		1,045			—			1,045
Allocated net loss		—			(2,821)			(2,821)
Change in fair value		—			2,530			2,530
Balance, March 31, 2023	$	56,197		$	37,026		$	93,223