Investor Presentaiton
ADJUSTED FREE CASH FLOW DEFINITION & 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
LIBERTY
LATIN AMERICA
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 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:
December 31,
2020
March 31,
2021
Three months ended
June 30,
Year ended
2021
September 30,
2021
December 31,
2021
December 31,
2020
December 31,
2021
in USD millions
Net cash provided by operating activities
Cash payments for direct acquisition and disposition costs
Expenses financed by an intermediary(1)
149.1
203.5
240.2
274.1
298.4
640.1
1,016.2
28.1
4.6
5.6
11.9
12.3
49.8
34.4
30.0
26.0
28.4
27.5
28.1
108.1
110.0
Capital expenditures
(147.5)
(135.6)
(198.6)
(210.5)
(191.6)
(565.8)
(736.3)
Distributions to noncontrolling interest owners
(16.5)
(1.3)
(46.3)
(18.8)
(47.6)
Principal payments on amounts financed by vendors and
intermediaries
(74.6)
(42.5)
(45.4)
(49.1)
(47.0)
(218.0)
(184.0)
Pre-acquisition interest payments, net (2)
47.4
2.2
6.6
2.4
81.5
11.2
Principal payments on finance leases
(0.5)
(0.5)
(0.5)
(0.5)
(2.6)
(2.2)
(4.1)
Credit for services in AT&T Acquisition (3)
Adjusted FCF
73.3
73.3
88.8
57.7
35.0
55.8
51.3
148.0
199.8
(1) For purposes of our consolidated statements of cash flows, expenses, including value-added taxes, financed by an intermediary are treated as an operating cash outflows and financing cash inflows when the expenses are incurred. When we pay the financing intermediary, we record financing cash outflows in our consolidated
statements of cash flows. For purposes of our Adjusted FCF definition, we add back the 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.
(3)
In connection with the Acquisition Agreement, AT&T agreed to give us a $75 million credit against certain roaming services that AT&T provides to the AT&T Acquired Entities for a seven-year period following the closing of the AT&T Acquisition. If the credits are not used for roaming services in that time period, any remaining credit
may be used to acquire certain other services from AT&T thereafter. For accounting purposes, we have bifurcated the discounted value of these services from the stated purchase consideration for the AT&T Acquisition. The discounted value associated with this asset is reflected as an outflow in our net cash provided by operating
activities in our 2020 consolidated statement of cash flows, and is therefore not accounted for as an investing activity related to the AT&T Acquisition. However, as this credit was negotiated as part of the overall Acquisition Agreement, we have added this item back to arrive at Adjusted free cash flow.
LIBERTY LATIN AMERICA | FY 2021 INVESTOR CALL | FEBRUARY 23, 2022
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