Investor Presentaiton
ADJUSTED FREE CASH FLOW DEFINITION & RECONCILIATION
LIBERTY
LATIN AMERICA
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, 2020
June 30, 2021
June 30, 2020
June 30, 2021
Net cash provided by operating activities
Cash payments for direct acquisition and disposition costs
Expenses financed by an intermediary(1)
Capital expenditures
238.7
in USD millions
240.2
353.6
443.7
2.8
5.6
4.2
10.2
19.6
28.4
52.1
54.4
(122.2)
(198.6)
(271.4)
(334.2)
Distributions to noncontrolling interest owners
(1.3)
(0.7)
(1.3)
Principal payments on amounts financed by vendors and intermediaries
(47.9)
(45.4)
(91.7)
(87.9)
Pre-acquisition interest payments, net (2)
39.2
6.6
36.2
8.8
Principal payments on finance leases
Adjusted FCF
(0.5)
129.7
(0.5)
(1.1)
(1.0)
35.0
81.2
92.7
(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.
LIBERTY LATIN AMERICA | Q2 & H1 2021 INVESTOR CALL | AUGUST 5, 2021
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