T-Mobile Investor Day Presentation Deck
1)
2)
3)
4)
5)
6)
7)
Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:
(in millions)
Net income
Adjustments:
Income from discontinued operations, net of tax
Income from continuing operations
Interest expense
Interest expense to affiliates
Interest income
Other expense, net
Tax (benefit) expense
Operating income
Depreciation and amortization
Operating income from discontinued operations (2)
Stock-based compensation (3) (4)
Merger-related costs (4) (5)
COVID-19-related costs
Impairment expense
Other, net (6) (7)
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
Adjusted EBITDA
Less: Lease revenues
Core Adjusted EBITDA
(Unaudited)
$
Q1 2020 (¹)
1,462
(357)
1,105
835
(5)
(26)
19
(282)
1,646
4,014
482
124
136
174
75
6,651
(1,403)
5,248
S
Q2 2020
Quarter
110
(320)
(210)
776
63
(6)
195
2
820
4,064
432
139
798
341
418
$
7,017
(1,421)
5,596 $
$
Q3 2020
1,253 $
1,253
765
44
(3)
99
407
2.565
4,150
125
288
7,129 $
(1,350)
5,779 $
Q4 2020
750
750
757
41
(8)
101
71
1,712
4.219
129
686
6.746
(1,245)
5.501
$
$
$
Year Ended
December 31, 2020 (¹)
3,575
(677)
2,898
3,133
143
(43)
414
198
6,743
16,447
914
517
1,908
515
418
81
27,543
(5,419)
22,124
The results for Q1 2020 represent unaudited pro forma results, as though the Merger had been completed on January 1, 2019, and have been prepared in accordance with Article 11 of Regulation S-X ("Article 11") which is a different basis than the unaudited pro forma financial information included in Note 2 - Business
Combinations in our Annual Report on Form 10-K for the year ended December 31, 2020. The primary difference between the Article 11 pro forma financial information and the ASC 805 pro forma financial information prepared by us is the treatment of certain one-time transaction costs, which are removed from all
periods under Article 11 but are recognized as if they had been incurred in their entirety during Q1 2019 under ASC 805. The unaudited pro forma results are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or consolidated financial condition
would have been had the Merger actually occurred on the date indicated, nor do they purport to project the future consolidated results of operations or consolidated financial condition for any future period or as of any future date. Additional information regarding pro forma adjustments is provided in Pro Forma
Income Statement Metrics below.
Following the Prepaid Transaction, starting on July 1, 2020, we provide MVNO services to DISH. We have included the operating income from discontinued operations in our determination of the Adjusted EBITDA to reflect contributions of the Prepaid Business that were replaced by the MVNO Agreement beginning on
July 1, 2020 in order to enable management, analysts and investors to better assess ongoing operating performance and trends.
For Q1 2020 pro forma results, this represents the sum of historically filed T-Mobile and Sprint standalone GAAP reported amounts, adjusted for the fair value of certain Sprint share-based compensation and the acceleration of certain executive compensation related to the Merger.
Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the Condensed Consolidated Financial Statements. Additionally, certain stock-based compensation expenses associated with the Sprint merger have been included in Merger-related costs.
For Q1 2020 pro forma results, this represents remaining Merger-related costs other than one-time transaction costs directly attributable to the Merger, which have been adjusted out of the pro forma calculations
For Q1 2020 pro forma results, Other, net contains the sum of historical T-Mobile adjustments to EBITDA as well as historical Sprint adjustments that are not otherwise included as a named reconciling item.
Other, net may not agree to the Condensed Consolidated Statements of Comprehensive Income primarily due to certain non-routine operating activities, such as other special items that would not be expected to reoccur or are not reflective of T-Mobile's ongoing operating performance, and are therefore excluded in
Adjusted EBITDA.
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