that have been made regarding, among other things, the timing of certain occurrences or impacts, may have changed since such date. In particular, the unaudited prospective financial information set forth below does not give effect to the merger transactions, nor does it take into account the effect of any failure of the merger transactions to occur, and should not be viewed as accurate in those contexts.
The inclusion of the unaudited prospective financial information herein should not be deemed an admission or representation by Sprint, T-Mobile, SoftBank, Deutsche Telekom or any of their respective affiliates that it or they view it as material information of Sprint, and in fact, none of the foregoing view the unaudited prospective financial information as material because of the inherent risks and uncertainties associated with such long-term projections. The unaudited prospective financial information should be evaluated in conjunction with the historical financial statements and other information regarding Sprint contained in this joint consent solicitation statement/prospectus and Sprint’s public filings with the SEC.
The following table presents selected unaudited prospective financial data of Sprint made available to the Sprint board of directors and the financial advisors to the Sprint independent committee and Sprint, as well as to T-Mobile and the financial advisors to the T-Mobile independent committee and T-Mobile (which we refer to as the “Sprint management Sprint forecasts”):
| Year Ended December 31, | ||||||||||||||||||||
| (in millions) |
2018E | 2019E | 2020E | 2021E | 2022E | |||||||||||||||
| Service revenues |
$ | 22,168 | $ | 23,136 | $ | 24,173 | $ | 25,253 | $ | 26,529 | ||||||||||
| Wireline, corporate and other revenues |
1,585 | 1,699 | 1,823 | 1,892 | 1,995 | |||||||||||||||
| Total revenues |
32,952 | 34,825 | 37,177 | 39,262 | 41,476 | |||||||||||||||
| EBITDA(1) |
11,737 | 14,032 | 16,010 | 17,676 | 19,458 | |||||||||||||||
| Adjusted EBITDA(2) |
11,890 | 14,132 | 16,080 | 17,728 | 19,509 | |||||||||||||||
| Cash capital expenditures(3) |
(5,636 | ) | (5,570 | ) | (5,451 | ) | (4,522 | ) | (4,683 | ) | ||||||||||
| Levered free cash flow(4) |
(2,444 | ) | 545 | 620 | 2,938 | 4,281 | ||||||||||||||
| (1) | EBITDA is a non-GAAP measure, which is calculated as earnings before interest expense, net of interest income, income tax expense, depreciation and amortization expense and includes non-cash stock-based compensation as an expense. |
| (2) | Adjusted EBITDA is a non-GAAP measure, which is calculated as earnings before interest expense, net of interest income, income tax expense, depreciation and amortization expense and does not include non-cash stock-based compensation as an expense. |
| (3) | Calculated as cash capital expenditures related to the purchase of tangible assets. |
| (4) | Levered free cash flow is a non-GAAP measure, which is calculated as cash provided by operating activities less cash used in investing activities. |
In addition to the Sprint management Sprint forecasts, at the request of the Sprint board of directors, Sprint management began in January 2018 the preparation of unaudited prospective financial data reflecting certain adjustments to the Sprint management Sprint forecasts, taking into account certain Sprint-specific and overall industry challenges (which Sprint management Sprint forecasts, as so adjusted, we refer to as the “adjusted Sprint management Sprint forecasts”). The adjusted Sprint management Sprint forecasts were initially discussed with the Sprint board of directors in January 2018, after which they were further refined and ultimately shared with the Sprint board of directors and the financial advisors to the Sprint independent committee and Sprint in April 2018. The following table presents the adjusted Sprint management Sprint forecasts:
| Year Ended December 31, | ||||||||||||||||||||
| (in millions) |
2018E | 2019E | 2020E | 2021E | 2022E | |||||||||||||||
| Service revenues |
$ | 22,170 | $ | 22,820 | $ | 23,343 | $ | 24,051 | $ | 25,106 | ||||||||||
| Wireline, corporate and other revenues |
1,583 | 1,699 | 1,823 | 1,892 | 1,995 | |||||||||||||||
| Total revenues |
32,952 | 34,462 | 36,142 | 37,719 | 39,589 | |||||||||||||||
| EBITDA(1) |
11,737 | 13,384 | 14,617 | 15,691 | 16,937 | |||||||||||||||
| Adjusted EBITDA(2) |
11,890 | 13,484 | 14,687 | 15,742 | 16,988 | |||||||||||||||
| Cash capital expenditures(3) |
(5,636 | ) | (5,570 | ) | (5,600 | ) | (5,700 | ) | (5,750 | ) | ||||||||||
| Levered free cash flow(4) |
(2,444 | ) | 127 | (663 | ) | (9 | ) | 784 | ||||||||||||
| (1) | EBITDA is a non-GAAP measure, which is calculated as earnings before interest expense, net of interest income, income tax expense, depreciation and amortization expense and includes non-cash stock-based compensation as an expense. |
| (2) | Adjusted EBITDA is a non-GAAP measure, which is calculated as earnings before interest expense, net of interest income, income tax expense, depreciation and amortization expense and does not include non-cash stock-based compensation as an expense. |
| (3) | Calculated as cash capital expenditures related to the purchase of tangible assets. |
| (4) | Levered free cash flow is a non-GAAP measure, which is calculated as cash provided by operating activities less cash used in investing activities. |
