Slide 1: 1st Quarter 2020 Results
1st Quarter 2020 Results May 6, 2020 Issued: May 6, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” and similar expressions are forward-look
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain non-GAAP historical and forward-looking financial measures, including but not limited to adjusted EBITDA, free cash flow, unlevered cash flow, and adjustments to GAAP and non- GAAP measures to exclude the effect of integration and transformation c
Slide 4: Capital Allocation Strategy
Capital Allocation Strategy Return Invest in Reduce Capital Growth Leverage through a Dividend • Secures the long-term financial health of the business • Provides flexibility to weather uncertain economic environment • Liquidity position is strong • Remain committed to deleveraging plan and dividend
Slide 5: COVID-19 Response
COVID-19 Response Working for Customers Serving Communities Supporting Employees Leading the Business • Quickly turned up connectivity and • Donated, installed high-speed • Ensured social distancing, limited • Rapidly augmented high-demand increased extensive capacity for connectivity to Naval hospi
Slide 6: Financial Highlights for 1Q20
Financial Highlights for 1Q20 • Improved revenue trajectory • Expanded 1Q20 Adjusted EBITDA(1) Margin to 42.9% from 41.7% in 1Q19 • Achieved $510 million of Annualized Run-Rate Adjusted EBITDA cost savings from transformation efforts • Good progress on deleveraging initiatives • Improved maturity pr
Slide 7: Highly Impacted Industries | Total Revenue
Highly Impacted Industries | Total Revenue Large and very well diversified customer base • Highly impacted industries represent about ~$1B in annualized total revenue or 5% of ~95% ~5% total revenue • Connectivity services provided are critical to customers’ operations Total Revenue Highly Impacted
Slide 8: Revenue | YoY Trend
Revenue | YoY Trend YoY Percentage Change for Total Revenue(1) -3.7% -4.4% -4.8% -5.1% -5.6% 1Q19 2Q19 3Q19 4Q19 1Q20 (1) Reflects certain reclassifications due to accounting changes made in the first quarter of 2020, which were announced in the Company's 8-K report filed with the SEC on April 30, 2
Slide 9: 1Q20 Revenue
1Q20 Revenue Wholesale SMB 18% Revenue YoY % QoQ % 1Q20 ($ in millions) Change(1) Change(1) 13% International & GAM $865 0.2% (0.6%) 25% Consumer Enterprise $1,420 (0.4%) (1.0%) SMB $658 (6.0%) (1.1%) 28% Wholesale $958 (7.0%) (2.5%) Enterprise Consumer $1,327 (5.8%) (2.0%) 16% Total Revenue $5,228
Slide 10: 1Q20 Consumer Metrics
1Q20 Consumer Metrics Consumer Broadband Revenue YoY % QoQ % 1Q20 Performance 1Q20 ($ in millions) Change(1) Change(1) (in thousands) Broadband $722 0% 0.6% Total Subscribers 4,667 Voice $421 (12%) (4.3%) Subscriber Quarterly Net Change (11) Regulatory $156 (0.6%) (3.1%) Below 20 Mbps (63) Other(2)
Slide 11: Adjusted EBITDA | Adjusted EBITDA Margin
Adjusted EBITDA | Adjusted EBITDA Margin Quarterly Performance(1)(2) ($ in Billions) $5.427 $5.375 $5.350 $5.306 $5.228 42.9% 42.9% 42.2% 42.3% 41.7% $2.262 $2.269 $2.261 $2.278 $2.243 1Q19 2Q19 3Q19 4Q19 1Q20 Adj. EBITDA Total Revenue Adj. EBITDA Margin 1) (1) 1Q19, 2Q19, 3Q19, 4Q19 and 1Q20 exclud
Slide 12: Debt Maturity Profile
Debt Maturity Profile As of 4Q18 ($ in millions) $7,634 $7,872 $1,618 $6,571 $5,031 $3,101 $2,084 $1,164 $775 $754 Debt 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ maturities As of 4Q18 Revolver Capacity 2020-2025 reduced by As of 1Q20PF (1) ($ in millions) more than $10,748 $12 billion
Slide 13: Near Term Debt | Quarterly Maturity Profile
Near Term Debt | Quarterly Maturity Profile As of 1Q20PF(1) ($ in millions) $1,262 Manageable near-term maturities $1,031 $981 Next principal maturity due in June 2021 at $1.25 billion Compares favorably to $128 $31 $31 $31 $31 historical Free Cash Flow 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 genera
Slide 14: 2020 Business Outlook
2020 Business Outlook Metric(1)(2) Revised Outlook Original Outlook Adjusted EBITDA Withdrawn $9.0 billion to $9.2 billion Free Cash Flow Withdrawn $3.1 billion to $3.4 billion Dividends(3) Unchanged $1.1 billion GAAP Interest Expense Unchanged $1.8 billion Net Cash Interest Unchanged $1.75 billion