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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Liberty Latin America Ltd | NASDAQ:LILA | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.07 | 0.88% | 8.04 | 7.76 | 8.13 | 8.16 | 7.96 | 8.09 | 156,732 | 01:00:00 |
Operating momentum with ~190,000 fixed and mobile subscribers added in Q2
Strong growth across key financial metrics as markets recover from COVID-19
~360,000 homes passed / upgraded YTD, full-year target raised to over 700,000
Expect to close acquisition of Telefónica Costa Rica's operations by mid-August
Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q2”) and six months (“YTD” or “H1 2021”) ended June 30, 2021.
CEO Balan Nair commented, “Building on a strong start to the year, we continued to drive healthy subscriber additions in Q2 across both our fixed and mobile products. Fixed RGU additions of 73,000 in the quarter took our first half performance to 149,000, nearly twice the amount we added in H1 2020. In mobile, we reported a best ever quarter for the group with 118,000 subscriber additions, compared to losses in the prior year where we experienced the initial impacts of COVID-19. These results are particularly encouraging as our markets continue to be affected to varying degrees by the pandemic and are yet to fully recover.”
“There is a clear opportunity to increase penetration of fixed services across our markets, led by broadband, and during H1 we added or upgraded approximately 360,000 homes with fiber technologies, representing our highest ever six-month period of activity. I'm pleased to confirm our new target for the year of over 700,000 homes to be added or upgraded while maintaining our guidance for P&E additions as a percentage of revenue at approximately 18%. We remain committed to bringing high-speed connectivity to more customers in the region.”
“The group reported $1.2 billion in revenue, $160 million of operating income, and $464 million in Adjusted OIBDA in the second quarter. We delivered operating income growth of 178%, reported Adjusted OIBDA growth of 40%, and double-digit rebased Adjusted OIBDA growth of 10%, as our largest markets returned to pre-COVID levels, with the exception of VTR where we are stabilizing performance following a challenging period last year. In addition to a strong performance compared to the prior-year quarter, which was our weakest financially since the pandemic began, revenue and Adjusted OIBDA were also higher sequentially, evidencing continued progress.”
“Our first half cash flow from operations and Adjusted Free Cash Flow were $444 million and $93 million, respectively, representing solid growth over the prior-year period as we continue to focus on improving cash generation. During the quarter, we recommenced share repurchases under our previously announced program.”
“Our inorganic strategy is an important driver of stakeholder value and we are excited to have received the required authorizations to acquire Telefónica Costa Rica's operations, with closing to follow shortly. The transaction will create an innovative converged provider in the country. Combined with our fixed business, Cabletica, we plan to deliver added value to customers through expanded product offerings, state-of-the-art infrastructure, and outstanding customer service levels.”
“As we enter the second half of 2021, we are focused on maintaining our positive momentum through the delivery of compelling consumer propositions across our expanding fixed footprint. Our organic opportunity is bolstered by last year's acquisition of Liberty Mobile in Puerto Rico and the upcoming addition of Telefónica Costa Rica's operations, with the respective in-market combinations expected to generate significant synergies and improved full-service product suites.”
Business Highlights
LLA 2021 Financial Guidance - Update
Additional information, including historic quarterly revenue, adjusted OIBDA, and P&E additions under our updated reporting segments, can be found on our website at https://www.lla.com/investors.
Financial and Operating Highlights
Financial Highlights
Q2 2021
Q2 2020
YoY Growth
YoY Rebase Growth1
H1 2021
H1 2020
YoY Growth
YoY Rebase Growth1
(USD in millions)
Revenue
$
1,168
$
849
38
%
8
%
$
2,328
$
1,780
31
%
4
%
Adjusted OIBDA2
$
464
$
333
40
%
10
%
$
913
$
697
31
%
6
%
Operating income (loss)
$
160
$
(206
)
178
%
$
338
$
(98
)
445
%
Property & equipment additions
$
215
$
153
40
%
$
367
$
286
28
%
As a percentage of revenue
18.4
%
18.1
%
15.8
%
16.1
%
Adjusted FCF3
$
35
$
130
$
93
$
81
Cash provided by operating activities
$
240
$
239
$
444
$
354
Cash used by investing activities
$
(215
)
$
(116
)
$
(341
)
$
(263
)
Cash provided (used) by financing activities
$
(30
)
$
132
$
303
$
587
Operating Highlights4
Q2 2021
Q2 2020
YoY Growth
YoY FX-Neutral Growth5
Total Customers
3,233,500
3,198,500
1
%
Organic customer adds
18,800
20,600
Total RGUs
6,332,700
6,120,300
3
%
Organic RGU adds (losses)
73,200
18,700
Broadband
24,800
46,700
Video
12,100
(15,800
)
Telephony
36,300
(12,200
)
Mobile subscribers*
4,623,900
3,309,700
40
%
Organic mobile adds (losses)
117,700
(310,100
)
Fixed ARPU
$
49.66
$
46.35
7
%
3
%
Mobile ARPU*
$
19.14
$
11.38
68
%
68
%
* Q2 2021 figures include mobile subscribers and ARPU related to operations in Puerto Rico and USVI. These operations were acquired on October 31, 2020 and therefore not included in Q2 2020 subscriber data.
Revenue Highlights
The following table presents (i) revenue of each of our segments and corporate operations for the periods indicated, and (ii) the percentage change from period-to-period on both a reported and rebased basis:
Three months ended
Increase/(decrease)
Six months ended
Increase/(decrease)
June 30,
June 30,
2021
2020
%
Rebased %
2021
2020
%
Rebased %
in millions, except % amounts
C&W Caribbean & Networks
$
434.2
$
404.9
7
8
$
864.0
$
856.9
1
2
C&W Panama
128.1
112.2
14
15
250.1
250.5
—
—
Liberty Puerto Rico
360.4
109.1
230
11
721.7
213.7
238
13
VTR
209.3
193.1
8
(6
)
419.6
399.5
5
(7
)
Cabletica
36.3
34.6
5
13
72.5
68.3
6
14
Corporate
5.4
—
N.M.
N.M.
10.8
—
N.M.
N.M.
Eliminations
(5.7
)
(5.0
)
N.M.
N.M.
(10.8
)
(9.0
)
N.M.
N.M.
Total
$
1,168.0
$
848.9
38
8
$
2,327.9
$
1,779.9
31
4
N.M. – Not Meaningful.
Q2 2021 Revenue Growth – Segment Highlights
Operating Income (Loss)
Adjusted OIBDA Highlights
The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the periods indicated, and (ii) the percentage change from period-to-period on both a reported and rebased basis:
Three months ended
Increase (decrease)
Six months ended
Increase (decrease)
June 30,
June 30,
2021
2020
%
Rebased %
2021
2020
%
Rebased %
in millions, except % amounts
C&W Caribbean & Networks
$
188.1
$166.7
13
14
$
369.4
$
353.7
4
5
C&W Panama
45.6
36.9
24
24
89.6
82.7
8
9
Liberty Puerto Rico
161.4
52.4
208
21
311.3
102.9
203
24
VTR
68.7
73.1
(6
)
(18
)
139.2
153.2
(9
)
(19
)
Cabletica
12.7
13.2
(4
)
3
26.8
26.5
1
9
Corporate
(12.5
)
(9.7
)
(29
)
(29
)
(23.0
)
(22.5
)
(2
)
(2
)
Total
$
464.0
$332.6
40
10
$
913.3
$
696.5
31
6
Operating income margin
13.7
%
(24.3
)
%
14.5
%
(5.5
)
%
Adjusted OIBDA margin
39.7
%
39.2
%
39.2
%
39.1
%
Q2 2021 Adjusted OIBDA Growth – Segment Highlights
Net Earnings (Loss) Attributable to Shareholders
Property & Equipment Additions and Capital Expenditures
The table below highlights the categories of the property and equipment additions (P&E Additions) for the indicated periods and reconciles to cash paid for capital expenditures.
Three months ended
Six months ended
June 30,
June 30,
2021
2020
2021
2020
USD in millions
Customer Premises Equipment
$
77.5
$
56.9
$
151.1
$
124.0
New Build & Upgrade
33.1
29.0
58.6
57.2
Capacity
36.6
22.0
53.7
28.1
Baseline
44.7
26.6
71.6
46.2
Product & Enablers
22.8
18.8
32.1
30.7
Property & equipment additions
214.7
153.3
367.1
286.2
Assets acquired under capital-related vendor financing arrangements
(19.5
)
(29.7
)
(38.3
)
(53.3
)
Changes in current liabilities related to capital expenditures
3.4
(1.4
)
5.4
38.5
Capital expenditures
$
198.6
$
122.2
$
334.2
$
271.4
Property & equipment additions as % of revenue
18.4
%
18.1
%
15.8
%
16.1
%
Property & Equipment Additions:
C&W Caribbean & Networks
$
73.2
$
63.7
$
122.8
$
121.0
C&W Panama
20.1
17.8
30.8
31.0
Liberty Puerto Rico
51.2
19.6
84.9
32.9
VTR
55.8
43.3
102.5
84.2
Cabletica
7.3
6.9
14.6
10.9
Corporate
7.1
2.0
11.5
6.2
Property & equipment additions
$
214.7
$
153.3
$
367.1
$
286.2
Property & Equipment Additions as a Percentage of Revenue by Reportable Segment:
C&W Caribbean & Networks
16.9
%
15.7
%
14.2
%
14.1
%
C&W Panama
15.7
%
15.9
%
12.3
%
12.4
%
Liberty Puerto Rico
14.2
%
18.0
%
11.8
%
15.4
%
VTR
26.7
%
22.4
%
24.4
%
21.1
%
Cabletica
20.1
%
19.9
%
20.1
%
16.0
%
New Build and Homes Upgraded by Reportable Segment:
C&W Caribbean & Networks
41,700
17,700
62,700
34,900
C&W Panama
38,700
36,500
60,200
61,700
Liberty Puerto Rico
6,600
6,200
8,700
13,400
VTR
134,600
4,600
211,300
33,900
Cabletica
9,700
7,100
16,300
8,600
Total
231,300
72,100
359,200
152,500
Summary of Debt, Finance Lease Obligations and Cash and Cash Equivalents
The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash and cash equivalents at June 30, 2021:
Debt
Finance lease obligations
Debt and
finance lease obligations
Cash and cash equivalents
in millions
Liberty Latin America1
$
404.7
$
1.1
$
405.8
$
411.0
C&W2
4,196.7
0.8
4,197.5
534.3
Liberty Puerto Rico
2,610.0
10.8
2,620.8
112.8
VTR
1,595.6
—
1,595.6
247.5
Cabletica
126.9
—
126.9
5.5
Total
$
8,933.9
$
12.7
$
8,946.6
$
1,311.1
Consolidated Leverage and Liquidity Information:
June 30, 2021
March 31, 2021
Consolidated gross leverage ratio3
5.0x
5.0x
Consolidated net leverage ratio3
4.2x
4.3x
Average debt tenor4
6.3 years
6.5 years
Fully-swapped borrowing costs
6.0%
6.0%
Unused borrowing capacity (in millions)5
$1,210.6
$1,219.7
(1)
Represents the amount held by Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups.
(2)
Represents the C&W borrowing group, including the C&W Caribbean & Networks and C&W Panama reporting segments.
(3)
Consolidated leverage ratios are non-GAAP measures. For additional information, including definitions of our consolidated leverage ratios, required reconciliations and the impact of Liberty Mobile on the ratios, see Non-GAAP Reconciliations below.
(4)
For purposes of calculating our average tenor, total debt excludes vendor financing and finance lease obligations.
(5)
At June 30, 2021, the full amount of unused borrowing capacity under our subsidiaries' revolving credit facilities was available to be borrowed, both before and after completion of the June 30, 2021 compliance reporting requirements. For information regarding limitations on our ability to access this liquidity, see the discussion under “Material Changes in Financial Condition” in our recently filed Quarterly Report on Form 10-Q.
Quarterly Subscriber Variance
Fixed and Mobile Subscriber Variance Table — June 30, 2021 vs March 31, 2021
Homes Passed
Two-way Homes Passed
Fixed-line Customer Relationships
Video RGUs
Internet RGUs
Telephony RGUs
Total RGUs
Prepaid
Postpaid
Total Mobile Subscribers
C&W Caribbean & Networks:
Jamaica
7,900
7,900
9,700
2,400
11,200
12,700
26,300
50,400
4,500
54,900
The Bahamas
—
—
2,300
700
1,300
900
2,900
(2,800
)
400
(2,400
)
Trinidad and Tobago
1,000
1,000
200
(900
)
—
1,000
100
—
—
—
Barbados
—
—
300
1,000
900
300
2,200
2,000
900
2,900
Other
400
400
(2,600
)
(100
)
(400
)
700
200
(1,100
)
3,800
2,700
Total C&W Caribbean & Networks
9,300
9,300
9,900
3,100
13,000
15,600
31,700
48,500
9,600
58,100
C&W Panama
26,800
26,800
(600
)
2,200
3,800
2,800
8,800
52,800
7,300
60,100
Total C&W
36,100
36,100
9,300
5,300
16,800
18,400
40,500
101,300
16,900
118,200
Liberty Puerto Rico
6,400
6,400
16,300
3,800
12,600
5,400
21,800
(5,000
)
11,000
6,000
VTR
117,000
130,500
(11,000
)
2,000
(11,200
)
9,200
—
(700
)
(5,800
)
(6,500
)
Cabletica
7,800
7,800
4,200
1,000
6,600
3,300
10,900
—
—
—
Total Net Adds
167,300
180,800
18,800
12,100
24,800
36,300
73,200
95,600
22,100
117,700
Q2 2021 Adjustments:
VTR1
—
—
(2,700
)
(300
)
(400
)
(2,100
)
(2,800
)
—
—
—
Net Adds
167,300
180,800
16,100
11,800
24,400
34,200
70,400
95,600
22,100
117,700
C&W Caribbean & Networks
C&W Panama
Liberty Puerto Rico
VTR
Cabletica
ARPU per Customer Relationship
The following table provides ARPU per customer relationship for the indicated periods:
Three months ended June 30,
FX-Neutral1
2021
2020
% Change
% Change
Liberty Latin America2
$
49.66
$
46.35
7.1
%
2.7
%
C&W Caribbean and Networks
$
48.35
$
48.83
(1.0
%)
0.7
%
C&W Panama2
$
37.62
$
41.74
(9.9
%)
(9.9
%)
Liberty Puerto Rico
$
77.51
$
77.69
(0.2
%)
(0.2
%)
VTR3
$
43.75
$
37.51
16.6
%
1.6
%
Cabletica4
$
42.19
$
43.16
(2.2
%)
5.2
%
Cable & Wireless Borrowing Group2
$
46.33
$
47.60
(2.7
%)
(1.3
%)
Mobile ARPU
The following table provides ARPU per mobile subscriber for the indicated periods:
Three months ended June 30,
FX-Neutral1
2021
2020
% Change
% Change
Liberty Latin America5
$
19.14
$
11.38
68.2
%
68.1
%
C&W Caribbean and Networks
$
14.55
$
13.13
10.8
%
13.0
%
C&W Panama
$
8.45
$
8.50
(0.6
%)
(0.6
%)
Liberty Puerto Rico
$
43.89
$
—
N.M.
N.M.
VTR6
$
15.97
$
15.22
4.9
%
(8.6
%)
Cable & Wireless Borrowing Group
$
11.66
$
11.01
5.9
%
7.2
%
N.M. – Not Meaningful.
(1)The FX-Neutral change represents the percentage change on a year-over-year basis adjusted for FX impacts and is calculated by adjusting the current-period figures to reflect translation at the foreign currency rates used to translate the prior year amounts
(2)
ARPU per customer relationship for the three months ended June 30, 2020 has been revised to exclude revenue and customer relationships associated with the DTH operations in Panama that were shut down in January 2021.
(3)
The ARPU per customer relationship amounts in Chilean pesos for the three months ended June 30, 2021 and 2020 are CLP 31,328 and CLP 30,830, respectively.
(4)
The ARPU per customer relationship amounts in Costa Rican colones for Cabletica for the three months ended June 30, 2021 and 2020 are CRC 26,014 and CRC 24,730, respectively.
(5)
The amount for the three months ended June 30, 2020 does not include the revenue and mobile subscribers of Liberty Mobile as the business was acquired on October 31, 2020. Excluding Liberty Mobile in the three months ended June 30, 2021, ARPU would have increased year-over-year by 5.3% on a reported basis and 5.2% on an FX-Neutral basis.
(6)
The mobile ARPU amounts in Chilean pesos for the three months ended June 30, 2021 and 2020 are CLP 11,433 and CLP 12,510, respectively.
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities and objectives, performance and guidance, growth expectations, and Adjusted Free Cash Flow expectations for 2021; expected new build and upgrade activity in 2021 and estimated P&E additions as a percent of revenue; the anticipated impact of the COVID-19 pandemic (including the rollout of vaccines) on our business and financial results, and for the countries in which we operate; our digital strategy, product innovation and commercial plans and projects; expectations on demand for connectivity in the region; our anticipated integration plans, synergies, opportunities and integration costs in Puerto Rico following the AT&T Acquisition; the timing and impact of the acquisition of Telefónica's Costa Rica business; the strength of our balance sheet and tenor of our debt; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as hurricanes and other natural disasters, political or social events, and pandemics, such as COVID-19, the uncertainties surrounding such events and efforts to contain any pandemic, the ability and cost to restore networks in the markets impacted by hurricanes or generally to respond to any such events; the continued use by subscribers and potential subscribers of our services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to obtain regulatory approval and satisfy conditions associated with acquisitions and dispositions, including the acquisition of Telefónica's Costa Rica business; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency exchange and interest rates; the ability of suppliers and vendors (including our third-party wireless network provider under our MVNO arrangement) to timely deliver quality products, equipment, software, services and access; our ability to adequately forecast and plan future network requirements including the costs and benefits associated with network expansions; and other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our most recently filed Form 10-K and Form 10-Q. These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
About Liberty Latin America
Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil, BTC, and Cabletica. The communications and entertainment services that we offer to our residential and business customers in the region include digital video, broadband internet, telephony and mobile services. Our business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology solutions with customers ranging from small and medium enterprises to international companies and governmental agencies. In addition, Liberty Latin America operates a subsea and terrestrial fiber optic cable network that connects over 40 markets in the region.
Liberty Latin America has three separate classes of common shares, which are traded on the NASDAQ Global Select Market under the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC link under the symbol “LILAB” (Class B).
For more information, please visit www.lla.com
Footnotes
Additional Information | Cable & Wireless Borrowing Group
The following tables reflect preliminary unaudited selected financial results, on a consolidated C&W basis, for the periods indicated, in accordance with U.S. GAAP.
Three months ended
June 30,
Change
Rebased change1
2021
2020
in millions, except % amounts
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video
$
39.6
$
42.7
Broadband internet
78.5
70.5
Fixed-line telephony
21.3
24.2
Total subscription revenue
139.4
137.4
Non-subscription revenue
13.8
11.3
Total residential fixed revenue
153.2
148.7
3
%
5
%
Residential mobile revenue:
Service revenue
114.4
104.4
Interconnect, equipment sales and other
25.3
18.3
Total residential mobile revenue
139.7
122.7
14
%
15
%
Total residential revenue
292.9
271.4
8
%
9
%
B2B revenue:
Service revenue
206.0
183.5
Subsea network revenue
60.7
60.4
Total B2B revenue
266.7
243.9
9
%
9
%
Total
$
559.6
$
515.3
9
%
9
%
Operating income (loss)
$
67.1
$
(245.7
)
(127
)%
Adjusted OIBDA
$
233.7
$
203.6
15
%
16
%
Operating income (loss) as a percentage of revenue
12.0
%
(47.7
)%
Adjusted OIBDA as a percentage of revenue
41.8
%
39.5
%
Proportionate Adjusted OIBDA
$
199.8
$
177.5
Six months ended
June 30,
Change
Rebased change1
2021
2020
in millions, except % amounts
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video
$
80.1
$
87.6
Broadband internet
155.8
141.5
Fixed-line telephony
42.1
48.5
Total subscription revenue
278.0
277.6
Non-subscription revenue
27.0
28.2
Total residential fixed revenue
305.0
305.8
—
%
2
%
Residential mobile revenue:
Service revenue
225.5
227.4
Interconnect, equipment sales and other
47.0
43.8
Total residential mobile revenue
272.5
271.2
—
%
2
%
Total residential revenue
577.5
577.0
—
%
2
%
B2B revenue:
Service revenue
404.9
396.9
Subsea network revenue
127.1
130.0
Total B2B revenue
532.0
526.9
1
%
1
%
Total
$
1,109.5
$
1,103.9
1
%
1
%
Operating income (loss)
$
135.1
$
(188.1
)
(172
)%
Adjusted OIBDA
$
459.0
$
436.4
5
%
6
%
Operating income (loss) as a percentage of revenue
12.2
%
(17.0
)%
Adjusted OIBDA as a percentage of revenue
41.4
%
39.5
%
Proportionate Adjusted OIBDA
$
392.0
$
378.2
1. Indicated growth rates are rebased for the estimated impacts of an acquisition, the shut down of our DTH operations in Panama and FX.
The following table details the U.S. dollar equivalent of the nominal amount outstanding of C&W's third-party debt, finance lease obligations and cash and cash equivalents:
June 30,
March 31,
Facility Amount
2021
2021
in millions
Credit Facilities:
Revolving Credit Facility due 2023 (LIBOR + 3.25%)
$
50.0
$
—
$
—
Revolving Credit Facility due 2026 (LIBOR + 3.25%)
$
580.0
—
—
Term Loan Facility B-5 due 2028 (LIBOR + 2.25%)
$
1,510.0
1,510.0
1,510.0
Total Senior Secured Credit Facilities
1,510.0
1,510.0
Notes:
Senior Secured Notes:
5.75% USD Senior Secured Notes due 2027
$
550.0
550.0
550.0
Senior Notes:
7.5% USD Senior Notes due 2026
$
500.0
500.0
500.0
6.875% USD Senior Notes due 2027
$
1,220.0
1,220.0
1,220.0
Total Notes
2,270.0
2,270.0
Other Regional Debt
342.9
344.1
Vendor financing
73.8
69.8
Finance lease obligations
0.8
1.2
Total third-party debt and finance lease obligations
4,197.5
4,195.1
Less: premiums, discounts and deferred financing costs, net
(28.0
)
(28.9
)
Total carrying amount of third-party debt and finance lease obligations
4,169.5
4,166.2
Less: cash and cash equivalents
(534.3
)
(474.7
)
Net carrying amount of third-party debt and finance lease obligations
$
3,635.2
$
3,691.5
Liberty Puerto Rico (LPR) Borrowing Group
The following table details the nominal amount outstanding of Liberty Puerto Rico's debt, finance lease obligations and cash and cash equivalents:
June 30,
March 31,
Facility amount
2021
2021
in millions
Credit Facilities:
Revolving Credit Facility due 2027 (LIBOR + 3.50%)
$
167.5
$
—
$
—
Term Loan Facility due 2028 (LIBOR + 3.75%)
$
500.0
500.0
500.0
Total Senior Secured Credit Facilities
500.0
500.0
Notes:
5.125% Senior Secured Notes due 2029
$
820.0
820.0
820.0
6.75% Senior Secured Notes due 2027
$
1,290.0
1,290.0
1,290.0
Total Notes
2,110.0
2,110.0
Finance lease obligations
10.8
10.8
Total debt and finance lease obligations
2,620.8
2,620.8
Less: discounts and deferred financing costs
(39.2
)
(39.9
)
Total carrying amount of debt
2,581.6
2,580.9
Less: cash and cash equivalents
(112.8
)
(128.1
)
Net carrying amount of debt
$
2,468.8
$
2,452.8
VTR Borrowing Group
The following table reflects preliminary unaudited selected financial results for the period indicated, in accordance with U.S. GAAP.
Three months ended
Six months ended
June 30,
June 30,
2021
2020
Change
2021
2020
Change
CLP in billions, except % amounts
Revenue
150.0
158.7
(6
)%
302.2
324.4
(7
)%
Operating income
5.3
25.0
(79
)%
18.7
52.9
(65
)%
Adjusted OIBDA
49.4
60.2
(18
)%
100.3
124.3
(19
)%
Operating income as a percentage of revenue
3.5
%
15.8
%
6.2
%
16.3
%
Adjusted OIBDA as a percentage of revenue
32.9
%
37.9
%
33.2
%
38.3
%
The following table details the borrowing currency and Chilean peso equivalent of the nominal amount outstanding of VTR's debt and cash and cash equivalents:
June 30,
March 31,
2021
2021
Borrowing currency in millions
CLP equivalent in billions
Credit Facilities:
Revolving Credit Facility A due 2026 (TAB1+3.35%)
CLP 45,000
—
—
Revolving Credit Facility B due 2026 (LIBOR + 2.75%)
$
200.0
—
—
Total Senior Secured Credit Facilities
—
—
Notes:
Senior Secured Notes:
4.375% USD Senior Secured Notes due 2029
$
410.0
300.2
294.7
5.125% USD Senior Secured Notes due 2028
$
540.0
395.4
388.1
Senior Notes:
6.375% USD Senior Notes due 2028
$
550.0
402.7
395.3
Total Notes
1,098.3
1,078.1
Vendor Financing
70.0
70.0
Total debt
1,168.3
1,148.1
Less: deferred financing costs
(19.4)
(17.4)
Total carrying amount of debt
1,148.9
1,130.7
Less: cash and cash equivalents
(181.3)
(99.6)
Net carrying amount of debt
967.6
1,031.1
Exchange rate (CLP to $)
732.2
718.7
1. Tasa Activa Bancaria rate.
Cabletica Borrowing Group
The following table details the borrowing currency and Costa Rican colón equivalent of the nominal amount outstanding of Cabletica's debt and cash and cash equivalents:
June 30,
March 31,
2021
2021
Borrowing currency in millions
CRC equivalent in billions
Term Loan B-1 Facility due 20241 (LIBOR + 5.50%)
$
49.2
30.5
30.1
Term Loan B-2 Facility due 20241 (TBP2 + 6.75%)
CRC 43,177.4
43.2
43.2
Revolving Credit Facility due 2024 (LIBOR + 4.25%)
$
15.0
5.0
—
Debt before discounts and deferred financing costs
78.7
73.3
Less: deferred financing costs
(3.7
)
(3.9
)
Total carrying amount of debt
75.0
69.4
Less: cash and cash equivalents
(3.4
)
(4.4
)
Net carrying amount of debt
71.6
65.0
Exchange rate (CRC to $)
619.3
612.3
(1)
Under the terms of the credit agreement, Cabletica is obligated to repay 50% of the outstanding aggregate principal amounts of the Cabletica Term Loan B-1 Facility and the Cabletica Term Loan B-2 Facility on February 1, 2024, with the remaining respective principal amounts due on August 1, 2024, which represents the ultimate maturity date of the facilities.
(2)
Tasa Básica Pasiva rate.
Subscriber Table
Consolidated Operating Data — June 30, 2021
Homes Passed
Two-way Homes Passed
Fixed-line Customer Relationships
Video RGUs
Internet RGUs
Telephony RGUs
Total RGUs
Prepaid
Postpaid
Total Mobile Subscribers
C&W Caribbean & Networks
Jamaica
629,000
629,000
313,000
132,700
279,900
269,900
682,500
1,027,600
29,700
1,057,300
The Bahamas
120,900
120,900
37,100
8,700
29,100
34,600
72,400
144,600
33,100
177,700
Trinidad and Tobago
336,200
336,200
157,700
105,300
141,500
88,300
335,100
—
—
—
Barbados
140,400
140,400
82,900
35,400
71,200
71,300
177,900
86,100
31,700
117,800
Other
334,000
314,200
229,100
74,700
180,100
119,900
374,700
338,300
55,600
393,900
Total C&W Caribbean & Networks
1,560,500
1,540,700
819,800
356,800
701,800
584,000
1,642,600
1,596,600
150,100
1,746,700
C&W Panama1
730,900
730,900
188,000
93,500
164,800
166,000
424,300
1,451,400
131,700
1,583,100
Total C&W
2,291,400
2,271,600
1,007,800
450,300
866,600
750,000
2,066,900
3,048,000
281,800
3,329,800
Liberty Puerto Rico2,3
1,146,400
1,146,400
508,600
242,200
462,100
247,700
952,000
229,200
797,500
1,026,700
VTR
4,041,600
3,632,200
1,441,600
1,068,900
1,266,300
517,300
2,852,500
10,100
257,300
267,400
Cabletica4
647,400
641,500
275,500
207,500
227,300
26,500
461,300
—
—
—
Total
8,126,800
7,691,700
3,233,500
1,968,900
2,822,300
1,541,500
6,332,700
3,287,300
1,336,600
4,623,900
(1)
RGU balances do not include 77,600 RGUs and 15,100 mobile subscribers that, due to the impact of COVID-19, have not been disconnected in accordance with our normal disconnect policy for non-payment and continue to receive services.
(2)
RGU balances do not include 14,700 fixed RGUs representing customers that, due to the impact of COVID-19, have not been disconnected in accordance with our normal disconnect policy for non-payment and were moved to an "essential services plan".
(3)
As of June 30, 2021, postpaid mobile subscribers include 127,300 Corporate Responsible Users (CRU). A CRU represents an individual receiving mobile services through an organization that has entered into a contract for mobile services with us and where the organization is responsible for the payment of the CRU’s mobile services. Mobile subscriber information associated with Liberty Mobile is preliminary and subject to adjustment until we have completed our review of such information and determined that it is presented in accordance with our policies.
(4)
Our homes passed in Costa Rica include 40,000 homes on a third-party network that provides us long-term access.
Glossary
Adjusted OIBDA Margin – Calculated by dividing Adjusted OIBDA by total revenue for the applicable period.
ARPU – Average revenue per unit refers to the average monthly subscription revenue (subscription revenue excludes interconnect, mobile handset sales and late fees) per average customer relationship or mobile subscriber, as applicable. ARPU per average customer relationship is calculated by dividing the average monthly subscription revenue from residential fixed and SOHO fixed services by the average of the opening and closing balances for customer relationships for the indicated period. ARPU per average mobile subscriber is calculated by dividing the average monthly mobile service revenue by the average of the opening and closing balances for mobile subscribers for the indicated period. Unless otherwise indicated, ARPU per customer relationship or mobile subscriber is not adjusted for currency impacts. ARPU per average RGU is calculated by dividing the average monthly subscription revenue from the applicable residential fixed service by the average of the opening and closing balances of the applicable RGUs for the indicated period. Unless otherwise noted, ARPU in this release is considered to be ARPU per average customer relationship or mobile subscriber, as applicable. Customer relationships, mobile subscribers and RGUs of entities acquired during the period are normalized.
Consolidated Net Leverage Ratio (VTR) – Defined in accordance with VTR's indenture for its senior notes, taking into account the ratio of its outstanding indebtedness (including the impact of its cross-currency swaps) less its cash and cash equivalents to its annualized EBITDA from the most recent two consecutive fiscal quarters.
Consolidated Net Leverage Ratio (LPR) – Defined in accordance with LPR's Group Credit Agreement, taking into account the ratio of its outstanding indebtedness less its cash and cash equivalents to its annualized EBITDA from the most recent two consecutive fiscal quarters. Annualized EBITDA includes pro forma EBITDA of Liberty Mobile for pre-acquisition periods.
Customer Relationships – The number of customers who receive at least one of our video, internet or telephony services that we count as RGUs, without regard to which or to how many services they subscribe. To the extent that RGU counts include equivalent billing unit ("EBU") adjustments, we reflect corresponding adjustments to our customer relationship counts. For further information regarding our EBU calculation, see Additional General Notes below. Customer relationships generally are counted on a unique premises basis. Accordingly, if an individual receives our services in two premises (e.g., a primary home and a vacation home), that individual generally will count as two customer relationships. We exclude mobile-only customers from customer relationships.
Fully-swapped Borrowing Cost – Represents the weighted average interest rate on our debt (excluding finance leases and including vendor financing obligations), including the effects of derivative instruments, original issue premiums or discounts, which includes a discount on the convertible notes issued by Liberty Latin America associated with a conversion option feature, and commitment fees, but excluding the impact of financing costs.
Homes Passed – Homes, residential multiple dwelling units or commercial units that can be connected to our networks without materially extending the distribution plant. Certain of our homes passed counts are based on census data that can change based on either revisions to the data or from new census results.
Internet (Broadband) RGU – A home, residential multiple dwelling unit or commercial unit that receives internet services over our network.
Leverage – Our gross and net leverage ratios, each a non-GAAP measure, are defined as total debt (total principal amount of debt and finance lease obligations outstanding, net of projected derivative principal-related cash payments (receipts)) and net debt to annualized Adjusted OIBDA of the latest two quarters. Net debt is defined as total debt (including the convertible notes) less cash and cash equivalents. For purposes of these calculations, debt is measured using swapped foreign currency rates, consistent with the covenant calculation requirements of our subsidiary debt agreements.
Mobile Subscribers – Our mobile subscriber count represents the number of active subscriber identification module (“SIM”) cards in service rather than services provided. For example, if a mobile subscriber has both a data and voice plan on a smartphone this would equate to one mobile subscriber. Alternatively, a subscriber who has a voice and data plan for a mobile handset and a data plan for a laptop (via a dongle) would be counted as two mobile subscribers. Customers who do not pay a recurring monthly fee are excluded from our mobile telephony subscriber counts after periods of inactivity ranging from 30 to 60 days, based on industry standards within the respective country. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.
NPS – Net promoter score.
Property and Equipment Addition Categories
Proportionate Net Leverage Ratio (C&W) – Calculated in accordance with C&W's Credit Agreement, taking into account the ratio of outstanding indebtedness (subject to certain exclusions) less cash and cash equivalents to EBITDA (subject to certain adjustments) for the last two quarters annualized, with both indebtedness and EBITDA reduced proportionately to remove any noncontrolling interests' share of the C&W group.
Revenue Generating Unit (RGU) – RGU is separately a video RGU, internet RGU or telephony RGU. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer in Chile subscribed to our video service, fixed-line telephony service and broadband internet service, the customer would constitute three RGUs. RGUs are generally counted on a unique premises basis such that a given premises does not count as more than one RGU for any given service. On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two RGUs for that service. Each bundled video, internet or telephony service is counted as a separate RGU regardless of the nature of any bundling discount or promotion. Non-paying subscribers are counted as RGUs during their free promotional service period. Some of these subscribers may choose to disconnect after their free service period. Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as RGUs. We do not include subscriptions to mobile services in our externally reported RGU counts. In this regard, our RGU counts exclude our separately reported postpaid and prepaid mobile subscribers.
SOHO – Small office/home office customers.
Telephony RGU – A home, residential multiple dwelling unit or commercial unit that receives voice services over our network. Telephony RGUs exclude mobile subscribers.
Two-way Homes Passed – Homes passed by those sections of our networks that are technologically capable of providing two-way services, including video, internet and telephony services.
U.S. GAAP – Generally accepted accounting principles in the United States.
Video RGU – A home, residential multiple dwelling unit or commercial unit that receives our video service over our network primarily via a digital video signal while subscribing to any recurring monthly service that requires the use of encryption-enabling technology. Video RGUs that are not counted on an EBU basis are generally counted on a unique premises basis. For example, a subscriber with one or more set-top boxes that receives our video service in one premises is generally counted as just one RGU.
Additional General Notes
Most of our operations provide telephony, broadband internet, data, video or other B2B services. Certain of our B2B service revenue is derived from SOHO customers that pay a premium price to receive enhanced service levels along with video, internet or telephony services that are the same or similar to the mass marketed products offered to our residential subscribers. All mass marketed products provided to SOHO customers, whether or not accompanied by enhanced service levels and/or premium prices, are included in the respective RGU and customer counts of our operations, with only those services provided at premium prices considered to be “SOHO RGUs” or “SOHO customers.” To the extent our existing customers upgrade from a residential product offering to a SOHO product offering, the number of SOHO RGUs and SOHO customers will increase, but there is no impact to our total RGU or customer counts. With the exception of our B2B SOHO customers, we generally do not count customers of B2B services as customers or RGUs for external reporting purposes.
Certain of our residential and commercial RGUs are counted on an EBU basis, including residential multiple dwelling units and commercial establishments, such as bars, hotels, and hospitals, in Chile and Puerto Rico. Our EBUs are generally calculated by dividing the bulk price charged to accounts in an area by the most prevalent price charged to non-bulk residential customers in that market for the comparable tier of service. As such, we may experience variances in our EBU counts solely as a result of changes in rates.
While we take appropriate steps to ensure that subscriber and homes passed statistics are presented on a consistent and accurate basis at any given balance sheet date, the variability from country to country in (i) the nature and pricing of products and services, (ii) the distribution platform, (iii) billing systems, (iv) bad debt collection experience and (v) other factors add complexity to the subscriber and homes passed counting process. We periodically review our subscriber and homes passed counting policies and underlying systems to improve the accuracy and consistency of the data reported on a prospective basis. Accordingly, we may from time to time make appropriate adjustments to our subscriber and homes passed statistics based on those reviews.
Non-GAAP Reconciliations
We include certain financial measures in this press release that are considered non-GAAP measures, including (i) Adjusted OIBDA, Adjusted OIBDA Margin and Adjusted OIBDA less P&E Additions, (ii) Adjusted Free Cash Flow, (iii) rebased revenue and rebased Adjusted OIBDA growth rates, and (iv) consolidated leverage ratios. The following sections set forth reconciliations of the nearest GAAP measure to our non-GAAP measures as well as information on how and why management of the Company believes such information is useful to an investor.
Adjusted OIBDA and Adjusted OIBDA less P&E Additions
Adjusted OIBDA and Adjusted OIBDA less P&E Additions, each a non-GAAP measure, are the primary measures used by our chief operating decision maker to evaluate segment operating performance. Adjusted OIBDA and Adjusted OIBDA less P&E Additions are also key factors that are used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of incentive compensation plans. As we use the term, Adjusted OIBDA is defined as operating income or loss before share-based compensation, depreciation and amortization, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe Adjusted OIBDA and Adjusted OIBDA less P&E Additions are meaningful measures because they represent a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) identify strategies to improve operating performance in the different countries in which we operate. We believe our Adjusted OIBDA and Adjusted OIBDA less P&E Additions measures are useful to investors because they are one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measures may not be directly comparable to similar measures used by other public companies. Adjusted OIBDA and Adjusted OIBDA less P&E Additions should be viewed as measures of operating performance that are a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income. A reconciliation of our operating income or loss to total Adjusted OIBDA and Adjusted OIBDA less P&E Additions are presented in the following table:
Three months ended
Six months ended
June 30,
June 30,
2021
2020
2021
2020
in millions
Operating income (loss)
$
160.2
$
(206.0
)
$
338.4
$
(98.2
)
Share-based compensation expense
32.8
23.5
55.8
47.3
Depreciation and amortization
254.0
216.4
499.9
429.9
Impairment, restructuring and other operating items, net
17.0
298.7
19.2
317.5
Adjusted OIBDA
464.0
332.6
913.3
696.5
Less: Property and equipment additions
214.7
153.3
367.1
286.2
Adjusted OIBDA less P&E additions
$
249.3
$
179.3
$
546.2
$
410.3
Operating income (loss) margin1
13.7
%
(24.3
)%
14.5
%
(5.5
)%
Adjusted OIBDA margin2
39.7
%
39.2
%
39.2
%
39.1
%
(1)
Calculated by dividing operating income or loss by total revenue for the applicable period.
(2)
Calculated by dividing Adjusted OIBDA by total revenue for the applicable period.
Adjusted Free Cash Flow Definition and Reconciliation
We define Adjusted Free Cash Flow (Adjusted FCF), a non-GAAP measure, as net cash provided by our operating activities, plus (i) cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, (ii) expenses financed by an intermediary, (iii) insurance recoveries related to damaged and destroyed property and equipment, and (iv) certain net interest payments (receipts) incurred or received, including associated derivative instrument payments and receipts, in advance of a significant acquisition, less (a) capital expenditures, (b) distributions to noncontrolling interest owners, (c) principal payments on amounts financed by vendors and intermediaries and (d) principal payments on finance leases. We believe that our presentation of Adjusted FCF provides useful information to our investors because this measure can be used to gauge our ability to service debt and fund new investment opportunities. Adjusted FCF should not be understood to represent our ability to fund discretionary amounts, as we have various mandatory and contractual obligations, including debt repayments, which are not deducted to arrive at this amount. Investors should view Adjusted FCF as a supplement to, and not a substitute for, U.S. GAAP measures of liquidity included in our condensed consolidated statements of cash flows.
The following table provides the reconciliation of our net cash provided by operating activities to Adjusted FCF for the indicated period:
Three months ended
Six months ended
June 30,
June 30,
2021
2020
2021
2020
in millions
Net cash provided by operating activities
$
240.2
$
238.7
$
443.7
$
353.6
Cash payments for direct acquisition and disposition costs
5.6
2.8
10.2
4.2
Expenses financed by an intermediary1
28.4
19.6
54.4
52.1
Capital expenditures
(198.6
)
(122.2
)
(334.2
)
(271.4
)
Distributions to noncontrolling interest owners
(1.3
)
—
(1.3
)
(0.7
)
Principal payments on amounts financed by vendors and intermediaries
(45.4
)
(47.9
)
(87.9
)
(91.7
)
Pre-acquisition interest payments, net2
6.6
39.2
8.8
36.2
Principal payments on finance leases
(0.5
)
(0.5
)
(1.0
)
(1.1
)
Adjusted FCF
$
35.0
$
129.7
$
92.7
$
81.2
(1)
For purposes of our condensed consolidated statements of cash flows, expenses, including value-added taxes, financed by an intermediary are treated as hypothetical operating cash outflows and hypothetical financing cash inflows when the expenses are incurred. When we pay the financing intermediary, we record financing cash outflows in our condensed consolidated statements of cash flows. For purposes of our Adjusted FCF definition, we add back the hypothetical operating cash outflows when these financed expenses are incurred and deduct the financing cash outflows when we pay the financing intermediary.
(2)
The amount for the 2021 period relates to (i) the Cabletica Term Loan B-1 Facility and Cabletica Term Loan B-2 Facility that were entered into in advance of the Telefónica-Costa Rica Acquisition, and (ii) the portion of interest paid in April 2021 that relates to pre-acquisition debt for the AT&T Acquisition. The amount for the 2020 period represents interest paid on pre-acquisition debt related to the AT&T Acquisition, net of interest received on cash held in escrow in advance of the closing of the AT&T Acquisition.
Rebase Information
Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2021, we have adjusted our historical revenue and Adjusted OIBDA (i) to include the pre-acquisition revenue and Adjusted OIBDA of the AT&T Acquired Entities, which were acquired on October 31, 2020, in our rebased amounts for the three and six months ended June 30, 2020, (ii) to include the pre-acquisition revenue and Adjusted OIBDA of a small B2B operation in the Cayman Islands that was acquired during 2020 in our rebased amounts for the three and six months ended June 30, 2020, (iii) to exclude the revenue and Adjusted OIBDA of certain B2B operations in Puerto Rico that were disposed of in January 2021 in connection with the AT&T Acquisition from our rebased amounts for the three and six months ended June 30, 2020, (iv) to exclude the revenue and Adjusted OIBDA associated with our DTH operations in Panama, which were shut down in January 2021 from our rebased amounts for the three and six months ended June 30, 2020 and (v) to reflect the translation of our rebased amounts for the three and six months ended June 30, 2020 at the applicable average foreign currency exchange rates that were used to translate our results for the three and six months ended June 30, 2021. We have reflected the revenue and Adjusted OIBDA of acquired entities in our 2020 rebased amounts based on what we believe to be the most reliable information that is currently available to us (generally pre-acquisition financial statements), as adjusted for the estimated effects of (a) any significant differences between U.S. GAAP and local generally accepted accounting principles, (b) any significant effects of acquisition accounting adjustments, (c) any significant differences between our accounting policies and those of the acquired entities and (d) other items we deem appropriate. We do not adjust pre-acquisition periods to eliminate nonrecurring items or to give retroactive effect to any changes in estimates that might be implemented during post-acquisition periods. As we did not own or operate the acquired entities during the pre-acquisition periods, no assurance can be given that we have identified all adjustments necessary to present their revenue and Adjusted OIBDA on a basis that is comparable to the corresponding post-acquisition amounts that are included in our historical results or that the pre-acquisition financial statements we have relied upon do not contain undetected errors. In addition, the rebased growth percentages are not necessarily indicative of the revenue and Adjusted OIBDA that would have occurred if these transactions had occurred on the dates assumed for purposes of calculating our rebased amounts or the revenue and Adjusted OIBDA that will occur in the future. The rebased growth percentages have been presented as a basis for assessing growth rates on a comparable basis and should be viewed as measures of operating performance that are a supplement to, and not a substitute for, U.S. GAAP reported growth rates.
The following tables provide the aforementioned adjustments made to the revenue and Adjusted OIBDA amounts for the periods indicated, to derive our rebased growth rates. Due to rounding, certain rebased growth rate percentages may not recalculate.
The following tables set forth the reconciliations from reported revenue to rebased revenue and related change calculations.
Three months ended June 30, 2020
C&W Caribbean & Networks
C&W Panama
Liberty Puerto Rico
VTR
Cabletica
Intersegment eliminations
Total
In millions
Revenue – Reported
$
404.9
$
112.2
$
109.1
$
193.1
$
34.6
$
(5.0
)
$
848.9
Rebase adjustments:
Acquisitions
1.6
—
219.5
—
—
—
221.1
Disposals
—
(0.5
)
(4.5
)
—
—
—
(5.0
)
Foreign currency
(4.7
)
—
—
28.6
(2.4
)
—
21.5
Revenue – Rebased
$
401.8
$
111.7
$
324.1
$
221.7
$
32.2
$
(5.0
)
$
1,086.5
Reported percentage change1
7
%
14
%
230
%
8
%
5
%
N/A
38
%
Rebased percentage change2
7
%
15
%
11
%
(6
)%
13
%
N/A
8
%
Six months ended June 30, 2020
C&W Caribbean & Networks
C&W Panama
Liberty Puerto Rico
VTR
Cabletica
Intersegment eliminations
Total
In millions
Revenue – Reported
$
856.9
$
250.5
$
213.7
$
399.5
$
68.3
$
(9.0
)
$
1,779.9
Rebase adjustments:
Acquisitions
3.3
—
436.1
—
—
—
439.4
Disposals
—
(1.4
)
(9.2
)
—
—
—
(10.6
)
Foreign currency
(11.7
)
—
—
51.1
(4.7
)
0.1
34.8
Revenue – Rebased
$
848.5
$
249.1
$
640.6
$
450.6
$
63.6
$
(8.9
)
$
2,243.5
Reported percentage change1
1
%
—
%
238
%
5
%
6
%
N/A
31
%
Rebased percentage change2
2
—
13
(7)
14
N/A
4
%
N/A – Not Applicable.
(1)
Reported percentage change is calculated as current period revenue less prior period revenue divided by prior period revenue.
(2)
Rebased percentage change is calculated as current period revenue less rebased prior period revenue divided by prior period rebased revenue.
The following tables set forth the reconciliations from reported Adjusted OIBDA to rebased Adjusted OIBDA and related change calculations.
Three months ended June 30, 2020
C&W Caribbean & Networks
C&W Panama
Liberty Puerto Rico
VTR
Cabletica
Corporate
Total
In millions
Adjusted OIBDA – Reported
$
166.7
$
36.9
$
52.4
$
73.1
$
13.2
$
(9.7
)
$
332.6
Rebase adjustments:
Acquisitions1
0.5
—
83.1
—
—
—
83.6
Disposals
—
(0.1
)
(2.6
)
—
—
—
(2.7
)
Foreign currency
(1.8
)
—
—
10.8
(0.9
)
—
8.1
Adjusted OIBDA – Rebased
$
165.4
$
36.8
$
132.9
$
83.9
$
12.3
$
(9.7
)
$
421.6
Reported percentage change2
13
%
24
%
208
%
(6)
%
(4)
%
(29)
%
40
%
Rebased percentage change3
14
%
24
%
21
%
(18)
%
3
%
(29)
%
10
%
Six months ended June 30, 2020
C&W Caribbean & Networks
C&W Panama
Liberty Puerto Rico
VTR
Cabletica
Corporate
Total
In millions
Adjusted OIBDA – Reported
$
353.7
$
82.7
$
102.9
$
153.2
$
26.5
$
(22.5
)
$
696.5
Rebase adjustments:
Acquisitions1
1.0
—
154.6
—
—
—
155.6
Disposals
—
(0.3
)
(5.5
)
—
—
—
(5.8
)
Foreign currency
(4.3
)
—
—
19.4
(1.8
)
—
13.3
Adjusted OIBDA – Rebased
$
350.4
$
82.4
$
252.0
$
172.6
$
24.7
$
(22.5
)
$
859.6
Reported percentage change2
4
%
8
%
203
%
(9)
%
1
%
(2)
%
31
%
Rebased percentage change3
5
%
9
%
34
%
(19)
%
9
%
(2)
%
6
%
(1)
The acquisition-related adjustment for Liberty Puerto Rico with respect to the AT&T Acquired Entities includes $5 million and $11 million, respectively, of estimated standalone costs that are not covered by the transitional services agreement with AT&T. These costs represent activities that AT&T had performed on behalf of the AT&T Acquired Entities during the pre-acquisition periods. Costs associated with these activities are being directly incurred by us in post-acquisition periods and include insurance coverage, certain commissions costs, group audit and control activities and various other support activities, including for legal, human resources, customer service, supply chain and finance.(2)
Reported percentage change is calculated as current period Adjusted OIBDA less prior period Adjusted OIBDA divided by prior period Adjusted OIBDA.
(3)
Rebased percentage change is calculated as current period Adjusted OIBDA less rebased prior period Adjusted OIBDA divided by prior period rebased Adjusted OIBDA.
The following tables set forth the reconciliations from reported revenue by product for our C&W Caribbean and Networks segment to rebased revenue by product and related change calculations.
Three months ended June 30, 2020
Residential fixed revenue
Residential mobile revenue
Total residential revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
124.5
$
76.5
$
201.0
$
203.9
$
404.9
Rebase adjustments:
Acquisitions
—
—
—
1.6
1.6
Foreign currency
(1.6
)
(1.4
)
(3.0
)
(1.7
)
(4.7
)
Revenue by product – Rebased
$
122.9
$
75.1
$
198.0
$
203.8
$
401.8
Reported percentage change1
4
%
16
%
9
%
6
%
7
%
Rebased percentage change2
5
%
19
%
10
%
6
%
8
%
Six months ended June 30, 2020
Residential fixed revenue
Residential mobile revenue
Total residential revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
255.6
$
169.0
$
424.6
$
432.3
$
856.9
Rebase adjustments:
Acquisitions
—
—
—
3.3
3.3
Foreign currency
(4.1
)
(3.3
)
(7.4
)
(4.3
)
(11.7
)
Revenue by product – Rebased
$
251.5
$
165.7
$
417.2
$
431.3
$
848.5
Reported percentage change1
1
%
2%
1%
—%
1%
Rebased percentage change2
2
%
4%
3%
1%
2%
(1)Reported percentage change is calculated as current period revenue less prior period revenue divided by prior period revenue.
(2)Rebased percentage change is calculated as current period revenue less rebased prior period revenue divided by prior period rebased revenue
The following tables set forth the reconciliations from reported revenue by product for our C&W Panama segment to rebased revenue by product and related change calculations.
Three months ended June 30, 2020
Residential fixed revenue
Residential mobile revenue
Total residential revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
24.2
$
46.2
$
70.4
$
41.8
$
112.2
Rebase adjustment – Disposal
(0.5
)
—
(0.5
)
—
(0.5
)
Revenue by product – Rebased
$
23.7
$
46.2
$
69.9
$
41.8
$
111.7
Reported percentage change1
(2
)%
10
%
6
%
29
%
14
%
Rebased percentage change2
1
%
10
%
7
%
29
%
15
%
Six months ended June 30, 2020
Residential fixed revenue
Residential mobile revenue
Total residential revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
50.2
$
102.2
$
152.4
$
98.1
$
250.5
Rebase adjustment – Disposal
(1.4
)
—
(1.4
)
—
(1.4
)
Revenue by product – Rebased
$
48.8
$
102.2
$
151.0
$
98.1
$
249.1
Reported percentage change1
(6
)%
(2
)%
(3
)%
4
%
—
%
Rebased percentage change2
(3
)%
(2
)%
(2
)%
4
%
—
%
(1)
Reported percentage change is calculated as current period revenue less prior period revenue divided by prior period revenue.
(2)
Rebased percentage change is calculated as current period revenue less rebased prior period revenue divided by prior period rebased revenue.
The following table sets forth the reconciliation from reported revenue to rebased revenue for our Liberty Puerto Rico segment.
Three months ended June 30, 2020
Legacy Liberty Puerto Rico
Liberty Mobile
Liberty Puerto Rico
In millions
Revenue – Reported
$
109.1
$
—
$
109.1
Rebase adjustments:
Acquisitions
—
219.5
219.5
Disposal
(4.5
)
—
(4.5
)
Revenue – Rebased
$
104.6
$
219.5
$
324.1
Reported percentage change1
14
%
N/A
230
%
Rebased percentage change2
19
%
7
%
11
%
N/A – Not Applicable.
(1)
Reported percentage change is calculated as current period revenue less prior period revenue divided by prior period revenue.
(2)
Rebased percentage change is calculated as current period revenue less rebased prior period revenue divided by prior period rebased revenue.
The following table sets forth the reconciliation from reported Adjusted OIBDA to rebased Adjusted OIBDA for our Liberty Puerto Rico segment.
Three months ended June 30, 2020
Legacy Liberty Puerto Rico
Liberty Mobile
Liberty Puerto Rico
In millions
Adjusted OIBDA – Reported
$
52.4
$
—
$
52.4
Rebase adjustments:
Acquisitions
—
83.1
83.1
Disposal
(2.6
)
—
(2.6
)
Adjusted OIBDA – Rebased
$
49.8
$
83.1
$
132.9
Reported percentage change1
21
%
N/A
208
%
Rebased percentage change2
27
%
18
%
21
%
N/A – Not Applicable.
(1)
Reported percentage change is calculated as current period Adjusted OIBDA less prior period Adjusted OIBDA divided by prior period Adjusted OIBDA.
(2)
Rebased percentage change is calculated as current period Adjusted OIBDA less rebased prior period Adjusted OIBDA divided by prior period rebased Adjusted OIBDA.
The following tables set forth the reconciliations from reported revenue by product for our C&W borrowing group to rebased revenue by product and related change calculations.
The following tables set forth the reconciliations from reported revenue by product for our C&W borrowing group to rebased revenue by product and related change calculations.
Three months ended June 30, 2020
Residential fixed revenue
Residential mobile revenue
Total residential revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
148.7
$
122.7
$
271.4
$
243.9
$
515.3
Rebase adjustments:
Acquisitions
—
—
—
1.6
1.6
Disposal
(0.5
)
—
(0.5
)
—
(0.5
)
Foreign currency
(2.0
)
(1.3
)
(3.3
)
(1.4
)
(4.7
)
Revenue by product – Rebased
$
146.2
$
121.4
$
267.6
$
244.1
$
511.7
Reported percentage change1
3
%
14
%
8
%
9
%
9
%
Rebased percentage change2
5
%
15
%
9
%
9
%
9
%
Six months ended June 30, 2020
Residential fixed revenue
Residential mobile revenue
Total residential revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
305.8
$
271.2
$
577.0
$
526.9
$
1,103.9
Rebase adjustments:
Acquisitions
—
—
—
3.3
3.3
Disposal
(1.4
)
—
(1.4
)
—
(1.4
)
Foreign currency
(4.3
)
(3.2
)
(7.5
)
(4.2
)
(11.7
)
Revenue by product – Rebased
$
300.1
$
268.0
$
568.1
$
526.0
$
1,094.1
Reported percentage change1
—
%
—
%
—
%
1
%
1
%
Rebased percentage change2
2
%
2
%
2
%
1
%
1
%
1.
Reported percentage change is calculated as current period revenue less prior period revenue divided by prior period revenue.
2.
Rebased percentage change is calculated as current period revenue less rebased prior period revenue divided by prior period rebased revenue
The following table sets forth the reconciliation from Adjusted OIBDA for our C&W borrowing group to rebased Adjusted OIBDA and related change calculations.
Three months ended June 30, 2020
Six months ended June 30, 2020
In millions
Adjusted OIBDA – Reported
$
203.6
$
436.4
Rebase adjustments:
Acquisition
0.5
1.0
Disposal
(0.1
)
(0.3
)
Foreign currency
(1.8
)
(4.3
)
Adjusted OIBDA – Rebased
$
202.2
$
432.8
Reported percentage change1
15
%
5
%
Rebased percentage change2
16
%
6
%
1.
Reported percentage change is calculated as current period Adjusted OIBDA less prior period Adjusted OIBDA divided by prior period Adjusted OIBDA.
2.
Rebased percentage change is calculated as current period Adjusted OIBDA less rebased prior period Adjusted OIBDA divided by prior period rebased Adjusted OIBDA.
Non-GAAP Reconciliation for Consolidated Leverage Ratios
We have set forth below our consolidated leverage and net leverage ratios. Our consolidated leverage and net leverage ratios, each a non-GAAP measure, are defined as (i) adjusted total debt and finance lease obligations (total carrying value of debt and finance lease obligations plus discounts, premiums and deferred finance costs, less projected derivative principal-related cash receipts) less cash and cash equivalents divided by (ii) last two quarters annualized Adjusted OIBDA as of June 30, 2021. For purposes of these calculations, adjusted total debt and finance lease obligations is measured using swapped foreign currency rates. We believe our consolidated leverage and net leverage ratios are useful because they allow our investors to consider the aggregate leverage on the business inclusive of any leverage at the Liberty Latin America level, not just at each of our operations. Investors should view consolidated leverage and net leverage as supplements to, and not substitutes for, ratios that would be calculated based upon measures presented in accordance with U.S. GAAP. Reconciliations of the numerator and denominator used to calculate the consolidated leverage and net leverage ratios as of June 30, 2021 and March 31, 2021 are set forth below:
June 30, 2021
March 31, 2021
in millions, except leverage ratios
Total debt and finance lease obligations
$
8,794.3
$
8,782.9
Discounts, premiums and deferred financing costs, net
152.3
156.0
Projected derivative principal-related cash payments1
114.1
150.9
Adjusted total debt and finance lease obligations
9,060.7
9,089.8
Less:
Cash and cash equivalents
1,311.1
1,305.6
Net debt and finance lease obligations
$
7,749.6
$
7,784.2
Adjusted OIBDA2:
Adjusted OIBDA for the three months ended December 31, 2020
N/A
428.0
Adjusted OIBDA for the three months ended March 31, 2021
449.3
449.3
Adjusted OIBDA for the three months ended June 30, 2021
464.0
N/A
Rebased Adjusted OIBDA – AT&T Acquired Entities3
—
26.8
Adjusted OIBDA – last two quarters
$
913.3
$
904.1
Annualized adjusted OIBDA – last two quarters annualized
$
1,826.6
$
1,808.2
Consolidated leverage ratio
5.0x
5.0x
Consolidated net leverage ratio
4.2x
4.3x
N/A – Not Applicable.
1.
Amounts represent the U.S. dollar equivalents and are based on interest rates and exchange rates that were in effect as of June 30, 2021 and March 31, 2021, respectively. For a discussion of our projected cash flows associated with derivative instruments, please see Item 3. Quantitative and Qualitative Disclosures About Market Risk—Projected Cash Flows Associated with Derivative Instruments in our most recently filed Quarterly Report on Form 10-Q.
2.
Adjusted OIBDA is a non-GAAP measure. See Adjusted OIBDA and Adjusted OIBDA less P&E Additions above for reconciliation of Adjusted OIBDA to the nearest U.S. GAAP measure for the three months ended June 30, 2021. A reconciliation of our operating income to Adjusted OIBDA for the three months ended December 30, 2020 and March 31, 2021 is presented in the following table:
Three months ended December 31, 2020
Three months ended March 31, 2021
in millions
Operating income
$
103.3
$
178.2
Share-based compensation expense
22.2
23.0
Depreciation and amortization
253.1
245.9
Impairment, restructuring and other operating items, net
49.4
2.2
Adjusted OIBDA
$
428.0
$
449.3
3.
Reflects our calculation of Adjusted OIBDA, as defined by Liberty Latin America, based upon historical financial information of the AT&T Acquired Entities for the pre-acquisition period (October 1, 2020 to October 31, 2020 with respect to the March 31, 2021 ratio calculations) as adjusted primarily for (i) the impact of new rates pursuant to agreements with AT&T related to roaming, subsea and ethernet services, (ii) aligning the accounting policies of the AT&T Acquired Entities to those used by Liberty Latin America, (iii) the impact of the elimination of parent-company allocations included in the historical financial statements of the AT&T Acquired Entities that are replaced by costs for services provided through the transitional services agreement with AT&T, which generally relate to network operations, customer service, finance and accounting, information, technology, and sales and marketing, and (iv) estimated standalone costs not covered by the transitional services agreement with AT&T.
Non-GAAP Reconciliations for Borrowing Groups
We provide certain financial measures in this press release of our borrowing groups. The financial statements of each of our borrowing groups are prepared in accordance with U.S. GAAP. We include certain financial measures for our borrowing group in this press release that are considered non-GAAP measures, including: (i) Adjusted OIBDA; (ii) Adjusted OIBDA Margin; and (iii) Proportionate Adjusted OIBDA.
Adjusted OIBDA by Borrowing Group
Adjusted OIBDA and proportionate Adjusted OIBDA at a borrowing group level are non-GAAP measures. Adjusted OIBDA is defined as operating income or loss before share-based compensation, depreciation and amortization, related-party fees and allocations, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Proportionate Adjusted OIBDA is defined as Adjusted OIBDA less the noncontrolling interests' share of Adjusted OIBDA. We believe these measures at the borrowing group level are useful to investors because they are one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measures may not be directly comparable to similar measures used by other public companies. These measures should be viewed as measures of operating performance that are a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income.
A reconciliation of C&W's operating income (loss) to total Adjusted OIBDA and Proportionate Adjusted OIBDA is presented in the following table:
Three months ended
Six months ended
June 30,
June 30,
2021
2020
2021
2020
in millions
Operating income (loss)
$
67.1
$
(245.7
)
$
135.1
$
(188.1
)
Share-based compensation expense
9.8
7.9
16.7
15.3
Depreciation and amortization
139.6
155.9
285.5
303.5
Related-party fees and allocations
7.5
6.8
12.8
17.8
Impairment, restructuring and other operating items, net
9.7
278.7
8.9
287.9
Total Adjusted OIBDA
233.7
203.6
459.0
436.4
Noncontrolling interests' share of Adjusted OIBDA
33.9
26.1
67.0
58.2
Proportionate Adjusted OIBDA
$
199.8
$
177.5
$
392.0
$
378.2
A reconciliation of VTR's operating income to total Adjusted OIBDA is presented in the following table:
Three months ended
Six months ended
June 30,
June 30,
2021
2020
2021
2020
CLP in billions
Operating income
5.3
25.0
18.7
52.9
Share-based compensation expense
1.5
1.6
2.8
3.2
Related-party fees and allocations
1.0
1.9
2.6
5.7
Depreciation
39.3
30.2
70.3
59.5
Impairment, restructuring and other operating items, net
2.3
1.5
5.9
3.0
Total Adjusted OIBDA
49.4
60.2
100.3
124.3
View source version on businesswire.com: https://www.businesswire.com/news/home/20210804006138/en/
Investor Relations Kunal Patel, ir@lla.com
Corporate Communications Claudia Restrepo, llacommunications@lla.com
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