Investor Presentaiton
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION
LIBERTY
LATIN AMERICA
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, and
for the September 30, 2020 net leverage ratio, restricted cash held in escrow at Liberty Puerto Rico that was
used to fund a portion of the AT&T Acquisition, divided by (ii) last two quarters annualized Adjusted OIBDA
as of December 31, as adjusted to include rebased Adjusted OIBDA of the AT&T Acquired Entities for the
pre-acquisition period, and September 30, 2020. 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 December 31, 2020 and September 30, 2020 are set forth below:
Total debt and finance lease obligations
Discounts, premiums and deferred financing costs, net
Projected derivative principal-related cash payments (1)
Adjusted total debt and finance lease obligations
Less:
Cash
Restricted cash (2)
Net debt and finance lease obligations
Adjusted OIBDA (3):
Adjusted OIBDA for the three months ended June 30, 2020
Adjusted OBIDA for the three months ended September 30, 2020
Adjusted OIBDA for the three months ended December 31, 2020
Rebased Adjusted OIBDA - AT&T Acquired Entities (4)
Adjusted OIBDA - last two quarters
Annualized adjusted OIBDA - last two quarters annualized
Consolidated leverage ratio
Consolidated net leverage ratio
September 30, 2020
in USD millions; except ratios
8,459.8
141.3
December 31, 2020
8,357.2
157.1
161.6
8,675.9
20.6
8,621.7
1,611.9
894.2
1,353.0
5,656.8
7,781.7
332.6
N/A
360.2
360.2
N/A
428.0
108.6
896.8
1,793.6
4.8x
4.3x
692.8
1,385.6
6.2x
4.1x
(1) Amount represents the U.S. equivalent and are based on interest rates and exchange rates that were in effect as of December 31, 2020 and September 30, 2020, respectively. For a discussion of our projected cash flows associated with derivative instruments, please see Item 7A. Quantitative and Qualitative Disclosures
About Market Risk-Projected Cash Flows Associated with Derivative Instruments in our 2020 Annual Report on Form 10-K.
(2) Amount relates to restricted cash held in escrow at Liberty Puerto Rico that was used to fund a portion of the AT&T Acquisition that was completed on October 31, 2020.
(3) Adjusted OIBDA is a non-GAAP measure. See slide 23 for reconciliations of Adjusted OIBDA to the nearest U.S. GAAP measure.
(4) 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 (July 1, 2020 to October 31, 2020) 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 of $8 million not covered by the transitional services agreement with AT&T.
LIBERTY LATIN AMERICA | FY 2020 INVESTOR CALL | MARCH 1, 2021
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