T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q4 2020 Earnings Presentation
33 slides from T-mobile Us's earnings presentation, Feb 4, 2021
Slide 1: Supercharging the Un-carrier: Investor Factbook Q4 2020
EXHIBIT 99.2 SUPERCHARGING THE UN-CARRIER INVESTOR FACTBOOK Q4 2020
Slide 2: Contents
2 3 Highlights 4 Customer Metrics 7 Financial Metrics 13 Capital Structure 14 5G Network Leadership 15 Merger & Integration 16 Guidance 17 Contacts 18 Financial and Operational Tables Unless otherwise noted, historical results for T-Mobile from the close of the merger (“Merger”) with Sprint Corporat
Slide 3: T-Mobile Caps Best Year Ever in 2020 with Strong Q4 Results
3 T-Mobile Caps Best Year Ever in 2020 with Strong Q4 Results, Is the Only National Wireless Provider to Beat Expectations on BOTH Customer Growth and Profitability Industry-Leading Customer Growth • Total net additions of 1.7 million in Q4 2020, best in industry — 5.6 million in full-year 2020, bes
Slide 4: Total Postpaid Net Additions and Postpaid Phone Churn
4 Total Postpaid Net Additions Postpaid phone net customer additions were 824 (in thousands) thousand in Q4 2020, compared to 689 thousand in Q3 2020 and 1.0 million in Q4 2019. ▪ Sequentially, the increase was primarily due to higher 1,979 gross customer additions driven by seasonality and 1,618 1,
Slide 5: Postpaid Phone ARPU and Postpaid Accounts & ARPA
5 Postpaid Phone ARPU Postpaid phone ARPU was $47.86 in Q4 2020, down 1.4% from $48.55 in Q3 2020 and up 4.5% from $45.79 in Q4 2019. ▪ Sequentially, the decrease was primarily due to a seasonal increase in our promotions and an increase in $48.55 average customers per account. $47.99 $47.86 ▪ Year-
Slide 6: Total Prepaid Net Additions and Total Customers
6 Total Prepaid Net Additions (losses) Prepaid net customer additions were 84 thousand in Q4 2020, compared to net additions of 56 thousand in Q3 2020 (in thousands) and net additions of 77 thousand in Q4 2019. 133 ▪ Sequentially, the increase was primarily due to seasonally higher promotional activ
Slide 7: Service Revenues
7 Service Revenues Service revenues were $14.2 billion in Q4 2020, up slightly from $14.1 billion in Q3 2020 and up 60% from $8.9 billion in ($ in millions) Q4 2019. $14,139 $14,180 $13,230 ▪ Sequentially, Postpaid service revenues increased slightly, primarily driven by higher average postpaid cust
Slide 8: Cost of Services, exclusive of D&A
8 Cost of Services, exclusive of D&A Cost of services, exclusive of depreciation and ($ in millions, % of Service revs excl. Merger-related amortization (D&A), was $3.8 billion in Q4 2020, up 15% costs) from $3.3 billion in Q3 2020 and up 126% from $1.7 billion in Q4 2019. $3,827 ▪ Sequentially, the
Slide 9: Selling, General and Administrative (SG&A) Expense
9 Selling, General and Administrative Selling, general and administrative (SG&A) expense was $4.8 billion in Q4 2020, down 2% from $4.9 billion in (SG&A) Expense Q3 2020 and up 30% from $3.7 billion in Q4 2019. ($ in millions, % of Service revs excl. Merger- related and COVID-19-related costs) ▪ Seq
Slide 10: Net Income and Diluted Earnings Per Share
10 Net Income Net income was $750 million in Q4 2020, down 40% from ($ in millions) $1.3 billion in Q3 2020 and essentially flat from $751 million in Q4 2019. Diluted EPS was $0.60 in Q4 2020, down from $1.00 in Q3 2020 and down from $0.87 in Q4 2019. ▪ Sequentially, the decrease in Net income and d
Slide 11: Adjusted EBITDA and Net Cash Provided by Operating Activities
11 Adjusted EBITDA Adjusted EBITDA was $6.7 billion in Q4 2020, down 5% ($ in millions, % of Service Revs) from $7.1 billion in Q3 2020 and up 108% from $3.2 billion in Q4 2019. ▪ Sequentially, the decrease was primarily due to higher Cost of equipment sales and Cost of services, excluding $7,129 Me
Slide 12: Cash Purchases of Property and Equipment; Free Cash Flow
12 Cash Purchases of Property and Cash purchases of property and equipment were $3.8 billion in Q4 2020, compared to $3.2 billion in Q3 2020 and Equipment $1.2 billion in Q4 2019. Capitalized interest included in cash ($ in millions, % of Service Revenues) purchases of property and equipment was $10
Slide 13: Net Debt and Net Debt to LTM Pro Forma Adj. EBITDA
13 Net Debt (Excluding Tower Total debt, excluding tower obligations, at the end of Q4 2020 was $73.6 billion. Obligations) & Net Debt to LTM Pro Forma Adj. EBITDA Ratio Net debt, excluding tower obligations, at the end of Q4 ($ in billions) 2020 was $63.2 billion. ▪ The ratio of net debt, excluding
Slide 14: 5G Network Leadership
‘|: 5G Network Leadership T-Mobile is the 5G leader with the fastest, biggest, and most available 5G network - delivering the fastest 5G download speeds, fastest 5G upload speeds, and a 5G signal more often than anyone else. '') 1 - New independent data from Opensignal, based on customer usage from
Slide 15: Sprint Merger synergies and integration
15 T-Mobile remains highly confident in its ability to deliver the Sprint Merger synergies and achieve the annualized savings from a combination of expense reductions and cost avoidance. We delivered $1.3 billion of synergies in full-year 2020, exceeding our Improvements for guidance from last quart
Slide 16: 2021 Outlook
16 2021 Outlook Postpaid net customer additions 4.0 to 4.7 million Net income (1) N/A Core Adjusted EBITDA (2) $22.6 to $23.1 billion Adjusted EBITDA $26.5 to $27.0 billion Lease revenues $3.8 to $4.0 billion Capital expenditures (3) $11.7 to $12.0 billion Merger-related costs (4) $2.5 to $3.0 billi
Slide 17: Investor Relations
17 Investor Relations investor.relations@t-mobile.com http://investor.t-mobile.com
Slide 18: Consolidated Balance Sheets
18 T-Mobile US, Inc. Consolidated Balance Sheets (Unaudited) (in millions, except share and per share amounts) December 31, 2020 December 31, 2019 Assets Current assets Cash and cash equivalents $ 10,385 $ 1,528 Accounts receivable, net of allowance for credit losses of $194 and $61 4,254 1,888 Equi
Slide 19: Consolidated Statements of Comprehensive Income
19 T-Mobile US, Inc. Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Year Ended December 31, December 31, September 30, December 31, (in millions, except share and per share amounts) 2020 2020 2019 2020 2019 Revenues Postpaid revenues $ 10,251 $ 10,209 $ 5,821 $ 36,306
Slide 20: Consolidated Statements of Cash Flows
20 T-Mobile US, Inc. Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Year Ended December 31, December 31, September 30, December 31, (in millions) 2020 2020 2019 2020 2019 Operating activities Net income $ 750 $ 1,253 $ 751 $ 3,064 $ 3,468 Adjustments to reconcile net income to
Slide 21: Consolidated Statements of Cash Flows (Continued)
21 T-Mobile US, Inc. Consolidated Statements of Cash Flows (Continued) (Unaudited) Three Months Ended Year Ended December 31, December 31, September 30, December 31, (in millions) 2020 2020 2019 2020 2019 Supplemental disclosure of cash flow information Interest payments, net of amounts capitalized
Slide 22: Supplementary Operating and Financial Data
22 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Year Ended Quarter December 31, (in thousands) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2019 2020 Customers, end of period Postpaid phone customers (1) 37,880 38,590 39,344 40,345 40,797 65,105 65,794
Slide 23: Supplementary Operating and Financial Data (continued)
23 T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) (Unaudited) Year Ended Quarter December 31, (in millions, except percentages) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2019 2020 Financial Measures Service revenues $ 8,391 $ 8,546 $ 8,713 $ 8,850 $ 8,
Slide 24: Calculation of Operating Measures
24 T-Mobile US, Inc. Calculation of Operating Measures (Unaudited) The following table illustrates the calculation of our operating measures ARPA and ARPU from the related service revenues: Year Ended Quarter December 31, (in millions, except average number of accounts and customers, ARPA and ARPU)
Slide 25: Reconciliation of Non-GAAP Financial Measures to GAAP
25 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (Unaudited) This Investor Factbook includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accorda
Slide 26: Reconciliation of Non-GAAP Financial Measures (continued)
26 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Net debt (excluding tower obligations) to the last twelve months Adjusted EBITDA ratios is calculated as follows: Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, (in
Slide 27: Free Cash Flow Guidance Reconciliation
27 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Our current guidance range for Free Cash Flow is calculated as follows: FY 2021 Current Guidance (in millions) Range Net cash provided by operating activities $ 13,000 $ 13,500 Cash
Slide 28: Reconciliations to Beginning Customers and Accounts
28 T-Mobile US, Inc. Reconciliations to Beginning Customers and Accounts (Unaudited) Postpaid Postpaid Total phone other postpaid Prepaid Total (in thousands) customers customers customers customers customers Reconciliation to beginning customers T-Mobile customers as reported, end of period March 3
Slide 29: Pro Forma Income Statement Metrics
29 T-Mobile US, Inc. Pro Forma Income Statement Metrics (Unaudited) The following tables present certain income statement metrics on a pro forma basis as though the Merger had been completed on January 1, 2019. The unaudited pro forma income statement metrics have been prepared in accordance with Ar
Slide 30: Pro Forma Income Statement Metrics (Continued)
30 T-Mobile US, Inc. Pro Forma Income Statement Metrics (Continued) (Unaudited) Three Months Ended September December March 31, (in millions) 30, 2019 31, 2019 2020 Depreciation and amortization Combined depreciation and amortization (1) $ 3,882 $ 4,332 $ 4,061 Pro forma adjustments (5) 202 (210) (4
Slide 31: Pro Forma Income Statement Metrics (Continued)
31 T-Mobile US, Inc. Pro Forma Income Statement Metrics (Continued) (Unaudited) (1) Represents the sum of historically filed T-Mobile and Sprint standalone GAAP reported amounts. Please reference the T-Mobile Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2019, and Marc
Slide 32: Definitions of Terms
32 Definitions of Terms Operating and financial measures are utilized by T-Mobile’s management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the wireless industry may not define measures in precisely the same way, T-Mob
Slide 33: Cautionary Statement Regarding Forward-Looking Statements
33 Cautionary Statement Regarding Forward-Looking Statements This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’