1 year ago
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The Un-carrier Further Extends its Network and Value Leadership, Driving Industry-Best Postpaid and Broadband Customer Growth
BELLEVUE, Wash., October 27, 2022--(BUSINESS WIRE)--T-Mobile US, Inc. (NASDAQ: TMUS):
Industry-Leading Growth successful Postpaid and Broadband Customers(1)
Postpaid nett relationship additions of 394 thousand, champion successful manufacture and highest successful institution history
Postpaid nett lawsuit additions of 1.6 million, much than AT&T and Verizon combined
Postpaid telephone nett lawsuit additions of 854 thousand, champion successful manufacture and highest since merger
Postpaid telephone churn of 0.88%, lone relation to amended year-over-year
High Speed Internet nett lawsuit additions of 578 thousand, champion successful manufacture for 4th consecutive quarter
Strong Financial Results Drive Guidance Raise for the Third Consecutive Quarter successful 2022
Service revenues of $15.4 cardinal grew 4% year-over-year, including industry-leading Postpaid work gross maturation of 7%
Net income of $508 cardinal and diluted net per stock ("EPS") of $0.40 decreased year-over-year chiefly owed to merger-related costs and nonaccomplishment related to the anticipated merchantability of the wireline concern amounting to a combined interaction of $1.8 billion, nett of tax, oregon $1.41 per share
Core Adjusted EBITDA(2) of $6.7 cardinal grew 11% year-over-year, champion maturation successful manufacture and raising guidance
Net currency provided by operating activities of $4.4 cardinal grew 26% year-over-year, champion maturation successful manufacture and raising guidance
Free Cash Flow(2) of $2.1 cardinal grew 32% year-over-year, champion maturation successful manufacture and raising guidance
Repurchased 4.9 cardinal shares of communal banal successful the 4th for a full acquisition terms of $669 million
5G Network Delivers Differentiated Customer Experience and Drives Overall Network Leadership
Further extended web enactment arsenic the nation’s largest, fastest, astir reliable and astir awarded 5G network
Ultra Capacity 5G covers 250 cardinal people, arsenic galore arsenic Verizon plans to screen much than 2 years from now
Significant Integration Milestone Accomplished with Network Decommissioning Substantially Complete
Raising merger synergies guidance scope to $5.7 cardinal to $5.8 cardinal successful 2022
T-Mobile US, Inc. (NASDAQ: TMUS) reported 3rd 4th 2022 results today, starring the manufacture successful postpaid and broadband lawsuit maturation and raising 2022 guidance for the 3rd consecutive quarter. The company’s differentiated maturation strategy and industry-best year-over-year postpaid telephone churn betterment drove the highest postpaid work gross and currency travel maturation successful the industry. The company’s sustained show and important advancement connected integration allowed T-Mobile to person afloat concern people ratings from each 3 standing agencies and committee support to commence a stock repurchase programme for up to $14 cardinal of the company’s communal banal done September 2023.
"We’ve ever said our aspiration was to beryllium the archetypal and lone supplier to connection customers some the champion web and the champion worth without having to sacrifice 1 for the different — and based connected different acceptable of standout lawsuit and fiscal results for Q3, it's wide we’re delivering connected that promise," said Mike Sievert, CEO of T-Mobile. "On the heels of our highest ever postpaid relationship nett additions and industry-leading postpaid and broadband lawsuit growth, we are raising guidance for the 3rd clip this year. Our Un-carrier playbook continues to triumph successful this ever-changing competitory and macro-economic clime and our momentum is lone getting stronger."
___________________________________________________________
(1) | AT&T Inc. historically does not disclose postpaid nett relationship additions. Industry-leading claims based connected statement expectations if results not yet reported. | |
(2) | Core Adjusted EBITDA and Free Cash Flow are non-GAAP fiscal measures. These non-GAAP fiscal measures should beryllium considered successful summation to, but not arsenic a substitute for, the accusation provided successful accordance with GAAP. Reconciliations for these non-GAAP fiscal measures to the astir straight comparable GAAP fiscal measures are provided successful the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not capable to forecast Net income connected a forward-looking ground without unreasonable efforts owed to the precocious variability and trouble successful predicting definite items that impact Net income including, but not constricted to, Income taxation disbursal and Interest expense. Core Adjusted EBITDA should not beryllium utilized to foretell Net income arsenic the quality betwixt this measurement and Net income is variable. |
Industry-Leading Growth successful Postpaid and Broadband Customers
Postpaid nett relationship additions of 394 1000 accrued 126 1000 year-over-year.
Postpaid nett lawsuit additions of 1.6 cardinal accrued 368 1000 year-over-year.
Postpaid telephone nett lawsuit additions of 854 1000 accrued 181 1000 year-over-year, starring the manufacture for the archetypal clip since Q1 2021. Postpaid telephone churn of 0.88% improved by 8 ground points year-over-year.
Prepaid nett lawsuit additions of 105 1000 accrued 39 1000 year-over-year. Prepaid churn of 2.88% improved by 2 ground points year-over-year.
High Speed Internet nett lawsuit additions of 578 1000 were a grounds high, and T-Mobile ended the 4th with implicit 2.1 cardinal High Speed Internet customers.
Total nett lawsuit additions of 1.7 cardinal accrued 407 1000 year-over-year and the full lawsuit number accrued to a grounds precocious of astir 112 million.
Quarter | Nine Months Ended September 30, | ||||||||||||||
(in thousands, but churn) | Q3 2022 | Q2 2022 | Q3 2021 | 2022 | 2021 | ||||||||||
Postpaid nett relationship additions | 394 | 380 | 268 | 1,122 | 873 | ||||||||||
Total nett lawsuit additions | 1,732 | 1,802 | 1,325 | 4,914 | 4,038 | ||||||||||
Postpaid nett lawsuit additions | 1,627 | 1,656 | 1,259 | 4,601 | 3,745 | ||||||||||
Postpaid telephone nett lawsuit additions | 854 | 723 | 673 | 2,166 | 2,073 | ||||||||||
Postpaid different nett lawsuit additions (1) | 773 | 933 | 586 | 2,435 | 1,672 | ||||||||||
Prepaid nett lawsuit additions (1) | 105 | 146 | 66 | 313 | 293 | ||||||||||
Total customers, extremity of play (1)(2)(3) | 111,755 | 110,023 | 106,920 | 111,755 | 106,920 | ||||||||||
Postpaid telephone churn | 0.88 | % | 0.80 | % | 0.96 | % | 0.87 | % | 0.93 | % | |||||
Prepaid churn | 2.88 | % | 2.58 | % | 2.90 | % | 2.71 | % | 2.76 | % | |||||
High Speed Internet nett lawsuit additions | 578 | 560 | 134 | 1,476 | 322 | ||||||||||
Total High Speed Internet customers, extremity of period | 2,122 | 1,544 | 422 | 2,122 | 422 | ||||||||||
(1) | Includes High-Speed Internet customers. | |
(2) | Customers impacted by the decommissioning of the bequest Sprint CDMA and LTE and T-Mobile UMTS networks person been excluded from our lawsuit basal resulting successful the removal of 212,000 postpaid telephone customers and 349,000 postpaid different customers successful the archetypal 4th of 2022 and 284,000 postpaid telephone customers, 946,000 postpaid different customers and 28,000 prepaid customers successful the 2nd 4th of 2022. In transportation with our acquisition of companies, we included a basal accommodation successful the archetypal 4th of 2022 to summation postpaid telephone customers by 17,000 and trim postpaid different customers by 14,000. Certain customers present serviced done reseller contracts were removed from our reported postpaid lawsuit basal resulting successful the removal of 42,000 postpaid telephone customers and 20,000 postpaid different customers successful the 2nd 4th of 2022. | |
(3) | In the archetypal 4th of 2021, we acquired 11,000 postpaid telephone customers and 1,000 postpaid different customers done our acquisition of an affiliate. In the 3rd 4th of 2021, we acquired 716,000 postpaid telephone customers and 90,000 postpaid different customers done our acquisition of the Wireless Assets from Shenandoah Personal Communications Company LLC ("Shentel"). |
Strong Financial Results
Total work revenues accrued 4% year-over-year to $15.4 billion, which included Postpaid work gross maturation of 7% year-over-year driven by continued lawsuit growth.
Net income of $508 cardinal and Diluted EPS of $0.40 decreased year-over-year chiefly owed to the impacts successful the existent quarter, nett of tax, associated with merger-related costs of $972 million, oregon $0.77 per stock and nonaccomplishment related to the anticipated merchantability of the wireline concern of $803 million, oregon $0.64 per share.
Core Adjusted EBITDA accrued 11% year-over-year to $6.7 cardinal chiefly owed to Service gross maturation and accrued synergy realization.
Net currency provided by operating activities increased 26% year-over-year to $4.4 billion, which included currency payments for merger-related costs of $942 million.
Cash purchases of spot and equipment, including capitalized interest, accrued 23% year-over-year to $3.6 cardinal driven by the accelerated build-out of the nationwide 5G network.
Free Cash Flow accrued 32% year-over-year to $2.1 billion, which included currency payments for merger-related costs of $942 million.
(in millions, but EPS) | Quarter | Nine Months Ended | Q3 2022 Q2 2022 | Q3 2022 Q3 2021 | YTD 2022 YTD 2021 | ||||||||||||||||||||||
Q3 2022 | Q2 2022 | Q3 2021 | 2022 | 2021 | |||||||||||||||||||||||
Total work revenues | $ | 15,361 | $ | 15,316 | $ | 14,722 | $ | 45,805 | $ | 43,406 | 0.3 | % | 4.3 | % | 5.5 | % | |||||||||||
Postpaid work revenues | 11,548 | 11,445 | 10,804 | 34,194 | 31,599 | 0.9 | % | 6.9 | % | 8.2 | % | ||||||||||||||||
Total revenues | 19,477 | 19,701 | 19,624 | 59,298 | 59,333 | (1.1 | )% | (0.7 | ) % | (0.1 | )% | ||||||||||||||||
Net (loss) income | 508 | (108 | ) | 691 | 1,113 | 2,602 | NM | (26.5 | ) % | (57.2 | )% | ||||||||||||||||
Diluted EPS | 0.40 | (0.09 | ) | 0.55 | 0.88 | 2.07 | NM | (27.3 | ) % | (57.5 | )% | ||||||||||||||||
Adjusted EBITDA | 7,039 | 7,004 | 6,811 | 20,993 | 20,622 | 0.5 | % | 3.3 | % | 1.8 | % | ||||||||||||||||
Core Adjusted EBITDA | 6,728 | 6,618 | 6,041 | 19,809 | 17,897 | 1.7 | % | 11.4 | % | 10.7 | % | ||||||||||||||||
Net currency provided by operating activities | 4,391 | 4,209 | 3,477 | 12,445 | 10,917 | 4.3 | % | 26.3 | % | 14.0 | % | ||||||||||||||||
Cash purchases of spot and equipment, including capitalized interest | 3,634 | 3,572 | 2,944 | 10,587 | 9,397 | 1.7 | % | 23.4 | % | 12.7 | % | ||||||||||||||||
Free Cash Flow | 2,065 | 1,758 | 1,559 | 5,472 | 4,534 | 17.5 | % | 32.5 | % | 20.7 | % | ||||||||||||||||
5G Network Delivers Differentiated Customer Experience and Drives Overall Network Leadership
T-Mobile is the person successful 5G with the country’s largest, fastest, astir reliable and astir awarded 5G network. The Un-carrier’s Extended Range 5G covers 97% of Americans, reaching much quadrate miles than Verizon and AT&T combined, and its super-fast Ultra Capacity 5G covers 250 cardinal radical nationwide. Nearly 55% of T-Mobile’s postpaid customers person a 5G phone.
T-Mobile’s astir awarded 5G web continues to pb the nation:
Ookla: In its Q3 Speedtest Global Index Market Analysis of mobile providers, T-Mobile placed archetypal successful astir each category:
Winning arsenic the fastest wide supplier with the fastest download and upload speeds, highest consistency and champion wide video score.
For 5G circumstantial performance, T-Mobile was ranked #1 for 5G download speeds and 5G availability and was unsurpassed for 5G video people and 5G consistency.
T-Mobile’s median 5G download speeds were adjacent faster than Comcast, Verizon, and AT&T’s fixed broadband median download speeds.
Opensignal: In its 2022 5G Global Mobile Network Experience Awards, T-Mobile won large for having the champion 5G availability and scope successful the world.
umlaut: In its latest 5G Network Performance Audit Report, T-Mobile was erstwhile again named arsenic the astir reliable 5G web successful the state with the champion coverage, stableness and speeds.
Raising 2022 Merger Synergies Guidance connected Accelerated Integration Progress
T-Mobile achieved a immense milestone with the web decommissioning substantially complete, little than 2.5 years post-merger closing, and much than a twelvemonth up of the archetypal merger plan.
Based connected the continued spot of execution, T-Mobile is raising its merger synergies guidance scope to $5.7 to $5.8 cardinal successful 2022, up from the erstwhile scope of $5.4 to $5.6 billion.
Approximately $2.4 cardinal of selling, wide and administrative (SG&A) disbursal reductions
Approximately $2.0 cardinal to $2.1 cardinal of outgo of work disbursal reductions achieved done web efficiencies
Approximately $1.3 cardinal of savings related to avoided web tract builds
Raising 2022 Guidance Again
Postpaid nett lawsuit additions are expected to beryllium betwixt 6.2 cardinal and 6.4 million, an summation from anterior guidance of 6.0 cardinal to 6.3 million.
Core Adjusted EBITDA, which is Adjusted EBITDA little lease revenues, is expected to beryllium betwixt $26.2 cardinal and $26.4 billion, an summation from anterior guidance of $26.0 cardinal to $26.3 billion.
Merger-related costs are expected to beryllium betwixt $4.8 cardinal and $5.0 cardinal earlier taxes, an summation from anterior guidance of $4.7 cardinal to $5.0 billion. These costs are excluded from Core Adjusted EBITDA but volition interaction Net income, Net currency provided from operating activities and Free Cash Flow.
Net currency provided by operating activities, including payments for Merger-related costs, is expected to beryllium betwixt $16.3 cardinal and $16.5 billion, an summation from anterior guidance of $16.0 cardinal to $16.3 billion.
Cash purchases of spot and equipment, including capitalized interest, are expected to beryllium betwixt $13.7 cardinal to $13.9 billion, an summation from anterior guidance of $13.5 cardinal to $13.7 billion, reflecting T-Mobile’s accelerated build-out of its nationwide 5G web and purchases of High Speed Internet routers.
Free Cash Flow, including payments for Merger-related costs, is expected to beryllium betwixt $7.4 cardinal and $7.6 billion, an summation from anterior guidance of $7.3 cardinal to $7.6 billion. Free Cash Flow guidance does not presume immoderate worldly nett currency inflows from securitization.
(in millions, but Postpaid nett lawsuit additions) | Previous | Current | Change | |||||||||||
Postpaid nett lawsuit additions (thousands) | 6,000 | 6,300 | 6,200 | 6,400 | 150 | |||||||||
Net income (1) | N/A | N/A | N/A | N/A | N/A | |||||||||
Core Adjusted EBITDA (2) | $ | 26,000 | $ | 26,300 | $ | 26,200 | $ | 26,400 | $ | 150 | ||||
Merger synergies | 5,400 | 5,600 | 5,700 | 5,800 | 250 | |||||||||
Merger-related costs (3) | 4,700 | 5,000 | 4,800 | 5,000 | 50 | |||||||||
Net currency provided by operating activities | 16,000 | 16,300 | 16,300 | 16,500 | 250 | |||||||||
Capital expenditures (4) | 13,500 | 13,700 | 13,700 | 13,900 | 200 | |||||||||
Free Cash Flow (5) | 7,300 | 7,600 | 7,400 | 7,600 | 50 | |||||||||
(1) | T-Mobile is not capable to forecast Net income connected a forward-looking ground without unreasonable efforts owed to the precocious variability and trouble successful predicting definite items that impact GAAP Net income, including, but not constricted to, Income taxation disbursal and Interest expense. Core Adjusted EBITDA should not beryllium utilized to foretell Net income arsenic the quality betwixt this measurement and Net income is variable. | |
(2) | Management uses Core Adjusted EBITDA arsenic a measurement to show the fiscal show of institution operations, excluding the interaction of lease revenues from related instrumentality financing programs. Guidance ranges presume lease revenues to beryllium betwixt $1.3 cardinal and $1.4 cardinal for 2022. | |
(3) | Merger-related costs are excluded from Core Adjusted EBITDA but volition interaction Net income, Net currency provided by operating activities and Free Cash Flow. | |
(4) | Capital expenditures means currency purchases of spot and equipment, including capitalized interest. | |
(5) | Free Cash Flow guidance does not presume immoderate worldly nett currency inflows from securitization successful 2022. |
Doing Better by Doing Good — the Un-carrier Way
T-Mobile continues to enactment existent to its committedness to usage its network, standard and resources for good, gathering a much connected, equitable and sustainable future. Most recently:
T-Mobile published its 2nd yearly Corporate Responsibility Report, sharing its advancement to span the integer divide, supply equitable opportunities and enactment a thriving planet.
Through Project 10Million, T-Mobile has made offering reliable and affordable connectivity to students a priority, investing $3.65 cardinal successful services to link much than 4.3 cardinal students since 2020.
T-Mobile received aggregate recognitions successful the 3rd quarter, including:
Finalist successful Fast Company’s 2022 Best Workplaces for Innovators successful some the Diversity and Sustainability categories
Environmental Protection Agency (EPA) 2022 Green Power Leadership award
Leading Disability Employer by The National Organization connected Disability
T-Mobile’s Emergency Management and Community Support teams supported much than 10,000 radical during Hurricanes Ian and Fiona with thousands of supplies including astute phones, blistery spots and charging banks, arsenic good arsenic escaped Wi-Fi connectivity.
As portion of T-Mobile’s committedness to bring 5G to agrarian America and enactment economical and assemblage development, the Un-carrier has fixed much than $5.5 cardinal to day to kick-start 125 assemblage improvement projects crossed 37 states.
Financial Results
For much details connected T-Mobile’s Q3 2022 fiscal results, including the Investor Factbook with elaborate fiscal tables, delight sojourn T-Mobile US, Inc.’s Investor Relations website astatine https://investor.t-mobile.com.
Earnings Call Information
Date/Time
Thursday, October 27, 2022, astatine 4:30 p.m. (EDT)
Access via Phone (audio only)
Please program connected accessing the telephone 10 minutes anterior to the scheduled commencement time.
US/Canada: 866-580-3963
International: +1 786-697-3501
Participant Passcode: 0945508
Access via Webcast
The net telephone volition beryllium broadcast unrecorded via the Investor Relations website astatine https://investor.t-mobile.com. A replay of the net telephone volition beryllium disposable for 2 weeks starting soon aft the telephone concludes and tin beryllium accessed by dialing 866-580-3963 (toll free) oregon +1 786-697-3501 (international). The passcode required to perceive to the replay is 0945508.
Submit Questions via Twitter
Send a tweet to @TMobileIR oregon @MikeSievert utilizing $TMUS
T-Mobile Social Media
Investors and others should enactment that we denote worldly fiscal and operational accusation to our investors utilizing our capitalist relations website (https://investor.t-mobile.com), newsroom website (https://t-mobile.com/news), property releases, SEC filings and nationalist league calls and webcasts. We besides mean to usage definite societal media accounts arsenic a means of disclosing accusation astir america and our services and for complying with our disclosure obligations nether Regulation FD (the @TMobileIR Twitter relationship (https://twitter.com/TMobileIR), the @MikeSievert Twitter relationship (https://twitter.com/MikeSievert), which Mr. Sievert besides uses arsenic a means for idiosyncratic communications and observations, and the @TMobileCFO Twitter Account (https://twitter.com/tmobilecfo), and our CFO’s LinkedIn relationship (https://www.linkedin.com/in/peter-osvaldik-3887394), some of which Mr. Osvaldik besides uses arsenic a means for idiosyncratic connection and observations). The accusation we station done these societal media channels whitethorn beryllium deemed material. Accordingly, investors should show these societal media channels successful summation to pursuing our property releases, SEC filings and nationalist league calls and webcasts. The societal media channels that we mean to usage arsenic a means of disclosing the accusation described supra whitethorn beryllium updated from clip to clip arsenic listed connected our capitalist relations website.
About T-Mobile US, Inc.
T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an precocious 4G LTE and transformative nationwide 5G web that volition connection reliable connectivity for all. T-Mobile’s customers payment from its unmatched operation of worth and quality, unwavering obsession with offering them the champion imaginable work acquisition and undisputable thrust for disruption that creates contention and innovation successful wireless and beyond. Based successful Bellevue, Wash., T-Mobile provides services done its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For much accusation delight visit: https://www.t-mobile.com.
Forward-Looking Statements
This connection includes forward-looking statements wrong the meaning of the Private Securities Litigation Reform Act of 1995. All statements different than statements of humanities fact, including accusation concerning T-Mobile US, Inc.’s aboriginal results of operations, are forward-looking statements. These forward-looking statements are mostly identified by the words "anticipate," "believe," "estimate," "expect," "intend," "may," "could" oregon akin expressions. Forward-looking statements are based connected existent expectations and assumptions, which are taxable to risks and uncertainties that whitethorn origin existent results to disagree materially from the forward-looking statements, including unexpected delays, difficulties, and expenses successful executing against our environmental, climate, oregon different "Environmental, Social, and Governance (ESG)" targets, goals and commitments outlined successful this document, including, but not constricted to, our efforts to trim our greenhouse state emissions, arsenic good arsenic changes successful laws oregon regulations affecting us, specified arsenic changes successful cybersecurity, information privacy, environmental, information and wellness laws, and different risks arsenic disclosed successful our astir caller yearly study connected Form 10-K, 10-Q and different filings with the Securities and Exchange Commission (the "SEC"). Given these risks and uncertainties, readers are cautioned not to spot undue reliance connected specified forward-looking statements. T-Mobile does not undertake, and expressly disclaims immoderate duty, to update immoderate statements contained herein, whether arsenic a effect of caller information, caller developments, oregon otherwise, but to the grade that disclosure whitethorn beryllium required by law. In addition, immoderate of the statements contained successful this papers whitethorn trust connected third-party accusation and projections that absorption believes to beryllium reputable; however, T-Mobile does not independently verify oregon audit this information.
This papers contains ESG-related statements based connected hypothetical scenarios and assumptions arsenic good arsenic estimates that are taxable to a precocious level of uncertainty, and these statements should not needfully beryllium viewed arsenic being typical of existent oregon existent hazard oregon performance, oregon forecasts of expected hazard oregon performance. In addition, historical, current, and forward-looking biology and social-related statements whitethorn beryllium based connected standards for measuring advancement that are inactive developing, and interior controls and processes that proceed to evolve. Forward-looking and different statements successful this papers whitethorn besides code our firm work and sustainability progress, plans, and goals, and the inclusion of specified statements is not an denotation that these contents are needfully worldly for the purposes of complying with oregon reporting pursuant to the U.S. national securities laws and regulations, adjacent if we usage the connection "material" oregon "materiality" successful this papers successful narration to those statements. Website references passim this papers are provided for convenience only, and the contented connected the referenced websites is not incorporated by notation into this document.
Forward-looking statements are based connected existent expectations and assumptions, which are taxable to risks and uncertainties and whitethorn origin existent results to disagree materially from the forward-looking statements. Important factors that could impact aboriginal results and origin those results to disagree materially from those expressed successful the forward-looking statements include, among others, the following: earthy disasters, nationalist wellness crises, including adverse impacts caused by the COVID-19 pandemic; competition, manufacture consolidation and changes successful the marketplace for wireless services; disruption, information nonaccomplishment oregon different information breaches, specified arsenic the transgression cyberattack we became alert of successful August 2021; our inability to instrumentality vantage of technological developments connected a timely basis; our inability to clasp oregon motivate cardinal personnel, prosecute qualified unit oregon support our firm culture; strategy failures and concern disruptions, allowing for unauthorized usage of oregon interference with our web and different systems; the scarcity and outgo of further wireless spectrum, and regulations relating to spectrum use; the impacts of the actions we person taken and conditions we person agreed to successful transportation with the regulatory proceedings and approvals of the Transactions (as defined below), including the acquisition by DISH Network Corporation ("DISH") of the prepaid wireless concern operated nether the Boost Mobile and Sprint prepaid brands (excluding the Assurance marque Lifeline customers and the prepaid wireless customers of Shenandoah Personal Communications Company LLC ("Shentel") and Swiftel Communications, Inc.), including lawsuit accounts, inventory, contracts, intelligence spot and definite different specified assets (the "Prepaid Business"), and the presumption of definite related liabilities (collectively, the "Prepaid Transaction"), the ailment and projected last judgement (the "Consent Decree") agreed to by us, Deutsche Telekom AG ("DT"), Sprint Corporation, present known arsenic Sprint LLC ("Sprint"), SoftBank Group Corp. ("SoftBank") and DISH with the U.S. District Court for the District of Columbia, which was approved by the Court connected April 1, 2020, the projected commitments filed with the Secretary of the Federal Communications Commission ("FCC"), which we announced connected May 20, 2019, definite nationalist information commitments and undertakings, and immoderate different commitments oregon undertakings entered into, including but not constricted to, those we person made to definite states and nongovernmental organizations (collectively, the "Government Commitments"), and the challenges successful satisfying the Government Commitments successful the required clip frames and the important cumulative costs incurred successful tracking and monitoring compliance; adverse economic, governmental oregon marketplace conditions successful the U.S. and planetary markets, including those caused by the COVID-19 pandemic; our inability to negociate the ongoing commercialized and modulation services arrangements entered into successful transportation with the Prepaid Transaction, and known oregon chartless liabilities arising successful transportation therewith; the timing and effects of immoderate aboriginal acquisition, disposition, investment, oregon merger involving us; immoderate disruption oregon nonaccomplishment of our 3rd parties (including cardinal suppliers) to supply products oregon services for the cognition of our business; our important level of indebtedness and our inability to work our indebtedness obligations successful accordance with their presumption oregon to comply with the restrictive covenants contained therein; changes successful the recognition marketplace conditions, recognition standing downgrades oregon an inability to entree indebtedness markets; restrictive covenants including the agreements governing our indebtedness and different financings; the hazard of aboriginal worldly weaknesses we whitethorn place portion we proceed to enactment to integrate the 2 companies pursuing the Transactions, oregon immoderate different nonaccomplishment by america to support effectual interior controls, and the resulting important costs and reputational damage; immoderate changes successful regulations oregon successful the regulatory model nether which we operate; laws and regulations relating to the handling of privateness and information protection; unfavorable outcomes of and accrued costs from existing oregon aboriginal ineligible proceedings, including these proceedings and inquiries relating to the transgression cyberattack we became alert of successful August 2021; the anticipation that we whitethorn beryllium incapable to adequately support our intelligence spot rights oregon beryllium accused of infringing the intelligence spot rights of others; our offering of regulated fiscal services products and vulnerability to a wide assortment of authorities and national regulations; caller oregon amended taxation laws oregon regulations oregon administrative interpretations and judicial decisions affecting the scope oregon exertion of taxation laws oregon regulations; our exclusive forum proviso arsenic provided successful our Certificate of Incorporation; interests of our important stockholders that whitethorn disagree from the interests of different stockholders; aboriginal income of our communal banal by DT and SoftBank and our inability to pull further equity financing extracurricular the United States owed to overseas ownership limitations by the FCC; our banal repurchase programme whitethorn not beryllium afloat consummated, and whitethorn not heighten semipermanent stockholder value; nonaccomplishment to recognize the expected benefits and synergies of the merger with Sprint, pursuant to the Business Combination Agreement with Sprint and the different parties named therein (as amended, the "Business Combination Agreement") and the different transactions contemplated by the Business Combination Agreement (collectively, the "Transactions") successful the expected clip frames oregon successful the amounts anticipated; immoderate hold and costs of, oregon difficulties in, integrating our concern and Sprint's concern and operations, and unexpected further operating costs, lawsuit nonaccomplishment and concern disruptions, including challenges successful maintaining relationships with employees, customers, suppliers oregon vendors; unanticipated difficulties, disruption, oregon important delays successful our semipermanent strategy to migrate Sprint's bequest customers onto T-Mobile's existing billing platforms; and different risks arsenic disclosed successful our astir caller yearly study connected Form 10-K, 10-Q and different filings with the SEC. Given these risks and uncertainties, readers are cautioned not to spot undue reliance connected specified forward-looking statements. We undertake nary work to revise oregon publically merchandise the results of immoderate revision to these forward-looking statements, but arsenic required by law.
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)
This Press Release includes non-GAAP fiscal measures. The non-GAAP fiscal measures should beryllium considered successful summation to, but not arsenic a substitute for, the accusation provided successful accordance with GAAP. Reconciliations for the non-GAAP fiscal measures to the astir straight comparable GAAP fiscal measures are provided below. T-Mobile is not capable to forecast Net income connected a forward-looking ground without unreasonable efforts owed to the precocious variability and trouble successful predicting definite items that impact GAAP nett income, including, but not constricted to, Income taxation disbursal and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not beryllium utilized to foretell Net income arsenic the quality betwixt either of these measures and Net Income is variable.
Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income (loss) arsenic follows:
Quarter | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
(in millions) | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | 2021 | 2022 | |||||||||||||||||||||||||||
Net income (loss) | $ | 933 | $ | 978 | $ | 691 | $ | 422 | $ | 713 | $ | (108 | ) | $ | 508 | $ | 2,602 | $ | 1,113 | |||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||
Interest expense, net | 835 | 850 | 836 | 821 | 864 | 851 | 827 | 2,521 | 2,542 | |||||||||||||||||||||||||||
Other expense, net | 125 | 1 | 60 | 13 | 11 | 21 | 3 | 186 | 35 | |||||||||||||||||||||||||||
Income taxation disbursal (benefit) | 246 | 277 | (3 | ) | (193 | ) | 218 | (55 | ) | (57 | ) | 520 | 106 | |||||||||||||||||||||||
Operating income | 2,139 | 2,106 | 1,584 | 1,063 | 1,806 | 709 | 1,281 | 5,829 | 3,796 | |||||||||||||||||||||||||||
Depreciation and amortization | 4,289 | 4,077 | 4,145 | 3,872 | 3,585 | 3,491 | 3,313 | 12,511 | 10,389 | |||||||||||||||||||||||||||
Stock-based compensation (1) | 130 | 129 | 127 | 135 | 136 | 149 | 145 | 386 | 430 | |||||||||||||||||||||||||||
Merger-related costs | 298 | 611 | 955 | 1,243 | 1,413 | 1,668 | 1,296 | 1,864 | 4,377 | |||||||||||||||||||||||||||
Impairment expense | — | — | — | — | — | 477 | — | — | 477 | |||||||||||||||||||||||||||
Legal-related expenses (recoveries), nett (2) | — | — | — | — | — | 400 | (19 | ) | — | 381 | ||||||||||||||||||||||||||
Loss connected disposal radical held for sale | — | — | — | — | — | — | 1,071 | — | 1,071 | |||||||||||||||||||||||||||
Other, nett (3) | 49 | (17 | ) | — | (11 | ) | 10 | 110 | (48 | ) | 32 | 72 | ||||||||||||||||||||||||
Adjusted EBITDA | 6,905 | 6,906 | 6,811 | 6,302 | 6,950 | 7,004 | 7,039 | 20,622 | 20,993 | |||||||||||||||||||||||||||
Lease revenues | (1,041 | ) | (914 | ) | (770 | ) | (623 | ) | (487 | ) | (386 | ) | (311 | ) | (2,725 | ) | (1,184 | ) | ||||||||||||||||||
Core Adjusted EBITDA | $ | 5,864 | $ | 5,992 | $ | 6,041 | $ | 5,679 | $ | 6,463 | $ | 6,618 | $ | 6,728 | $ | 17,897 | $ | 19,809 | ||||||||||||||||||
(1) | Stock-based compensation includes payroll taxation impacts and whitethorn not hold to stock-based compensation disbursal successful the consolidated fiscal statements. Additionally, definite stock-based compensation expenses associated with the Sprint merger person been included successful Merger-related costs. | |
(2) | Legal-related expenses (recoveries), net, consists of the colony of definite litigation associated with the August 2021 cyberattack, nett of security recoveries. | |
(3) | Other, net, chiefly consists of definite severance, restructuring and different expenses and income, including gains from the merchantability of IP addresses, not straight attributable to the Merger which would not beryllium expected to reoccur oregon are not reflective of T-Mobile’s ongoing operating performance, and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA. |
Adjusted EBITDA represents net earlier Interest expense, nett of Interest income, Income taxation expense, Depreciation and amortization expense, stock-based compensation and definite income and expenses not reflective of T-Mobile’s ongoing operating performance. Core Adjusted EBITDA represents Adjusted EBITDA little lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP fiscal measures utilized by T-Mobile’s absorption to show the fiscal show of our operations. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA arsenic benchmarks to measure T-Mobile’s operating show successful examination to its competitors. T-Mobile besides uses Adjusted EBITDA internally arsenic a measurement to measure and compensate its unit and absorption for their performance. Management believes analysts and investors usage Core Adjusted EBITDA and Adjusted EBITDA arsenic supplemental measures to measure wide operating show and facilitate comparisons with different wireless communications companies due to the fact that they are indicative of T-Mobile’s ongoing operating show and trends by excluding the interaction of Interest disbursal from financing, non-cash depreciation and amortization from superior investments, stock-based compensation, Merger-related costs, including web decommissioning costs, impairment expense, losses connected disposal groups held for merchantability and definite legal-related recoveries and expenses, arsenic they are not indicative of T-Mobile’s ongoing operating performance, arsenic good arsenic definite nonrecurring income and expenses. Management believes analysts and investors usage Core Adjusted EBITDA due to the fact that it normalizes for the modulation successful the company’s instrumentality financing strategy, by excluding the interaction of lease revenues from Adjusted EBITDA, to align with the related depreciation disbursal connected leased devices, which is excluded from the explanation of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA person limitations arsenic analytical tools and should not beryllium considered successful isolation oregon arsenic a substitute for Net income oregon immoderate different measurement of fiscal show reported successful accordance with U.S. Generally Accepted Accounting Principles ("GAAP").
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)
(Unaudited)
Free Cash Flow is calculated arsenic follows:
Quarter | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
(in millions) | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | 2021 | 2022 | |||||||||||||||||||||||||||
Net currency provided by operating activities | $ | 3,661 | $ | 3,779 | $ | 3,477 | $ | 3,000 | $ | 3,845 | $ | 4,209 | $ | 4,391 | $ | 10,917 | $ | 12,445 | ||||||||||||||||||
Cash purchases of spot and equipment, including capitalized interest | (3,183 | ) | (3,270 | ) | (2,944 | ) | (2,929 | ) | (3,381 | ) | (3,572 | ) | (3,634 | ) | (9,397 | ) | (10,587 | ) | ||||||||||||||||||
Proceeds from income of operation sites | — | 31 | — | 9 | — | — | — | 31 | — | |||||||||||||||||||||||||||
Proceeds related to beneficial interests successful securitization transactions | 891 | 1,137 | 1,071 | 1,032 | 1,185 | 1,121 | 1,308 | 3,099 | 3,614 | |||||||||||||||||||||||||||
Cash payments for indebtedness prepayment oregon indebtedness extinguishment costs | (65 | ) | (6 | ) | (45 | ) | — | — | — | — | (116 | ) | — | |||||||||||||||||||||||
Free Cash Flow | $ | 1,304 | $ | 1,671 | $ | 1,559 | $ | 1,112 | $ | 1,649 | $ | 1,758 | $ | 2,065 | $ | 4,534 | $ | 5,472 | ||||||||||||||||||
Free Cash Flow - Net currency provided by operating activities little Cash purchases of spot and equipment, including Proceeds from income of operation sites and Proceeds related to beneficial interests successful securitization transactions and little Cash payments for indebtedness prepayment oregon indebtedness extinguishment costs. Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to measure currency disposable to wage indebtedness and supply further concern successful the business.
The existent guidance scope for Free Cash Flow is calculated arsenic follows:
FY 2022 | |||||||
(in millions) | Guidance Range | ||||||
Net currency provided by operating activities | $ | 16,300 | $ | 16,500 | |||
Cash purchases of spot and equipment, including capitalized interest | (13,700 | ) | (13,900 | ) | |||
Proceeds related to beneficial interests successful securitization transactions (1) | 4,800 | 5,000 | |||||
Free Cash Flow | $ | 7,400 | $ | 7,600 | |||
(1) | Free Cash Flow guidance does not presume immoderate worldly nett currency inflows from securitization successful 2022. |
The erstwhile guidance scope for Free Cash Flow was calculated arsenic follows:
FY 2022 | |||||||
(in millions) | Guidance Range | ||||||
Net currency provided by operating activities | $ | 16,000 | $ | 16,300 | |||
Cash purchases of spot and equipment, including capitalized interest | (13,500 | ) | (13,700 | ) | |||
Proceeds related to beneficial interests successful securitization transactions (1) | 4,800 | 5,000 | |||||
Free Cash Flow | $ | 7,300 | $ | 7,600 | |||
(1) | Free Cash Flow guidance does not presume immoderate worldly nett currency inflows from securitization successful 2022. |
T-Mobile US, Inc.
Operating Measures
(Unaudited)
The pursuing array sets distant institution operating measures ARPA and ARPU:
(in dollars) | Quarter | Nine Months Ended September 30, | ||||||||||||||||||||||||
Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | 2021 | 2022 | ||||||||||||||||||
Postpaid ARPA | $ | 132.91 | $ | 133.55 | $ | 134.54 | $ | 135.04 | $ | 136.53 | $ | 137.92 | $ | 137.49 | $ | 133.68 | $ | 137.32 | ||||||||
Postpaid telephone ARPU | 47.30 | 47.61 | 48.06 | 48.03 | 48.41 | 48.96 | 48.89 | 47.66 | 48.75 | |||||||||||||||||
Prepaid ARPU | 37.81 | 38.53 | 39.49 | 39.32 | 39.19 | 38.71 | 38.86 | 38.61 | 38.92 | |||||||||||||||||
Average Revenue Per Account (Postpaid ARPA) - Average monthly postpaid work gross earned per account. Postpaid work revenues for the specified play divided by the mean fig of postpaid accounts during the period, further divided by the fig of months successful the period.
Average Revenue Per User (ARPU) - Average monthly work gross earned per customer. Service revenues for the specified play divided by the mean fig of customers during the period, further divided by the fig of months successful the period.
Postpaid telephone ARPU excludes postpaid different customers and related revenues.
View root mentation connected businesswire.com: https://www.businesswire.com/news/home/20221026006142/en/
Contacts
Media Relations: mediarelations@t-mobile.com
Investor Relations: investor.relations@t-mobile.com
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