SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF T-MOBILE
The following selected historical consolidated financial data is derived from T-Mobile’s audited consolidated financial statements as of and for each of the years ended December 31, 2017, 2016, 2015, 2014 and 2013 and unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2018 and 2017. In the opinion of T-Mobile’s management, the interim financial data includes all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the results for the interim periods. In connection with the business combination with MetroPCS Communications, Inc. (which we refer to as “MetroPCS”), the selected financial data prior to May 1, 2013 represents T-Mobile USA’s historical financial data. The information set forth below is only a summary that you should read together with the historical audited consolidated financial statements of T-Mobile and the related notes, as well as the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in T-Mobile’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as updated by the Current Report on Form 8-K filed with the SEC on June 18, 2018, along with the unaudited condensed consolidated financial statements of T-Mobile for the three month period ended March 31, 2018 contained in T-Mobile’s Quarterly Report on Form 10-Q that T-Mobile previously filed with the SEC and that are incorporated by reference into this joint consent solicitation statement/prospectus. Historical results are not necessarily indicative of any results to be expected in the future. See “Where You Can Find More Information.”
| (in millions, except per share and customer amounts) |
As of and for the Quarter Ended March 31, |
As of and for the Year Ended December 31, | ||||||||||||||||||||||||||
| 2018 | 2017 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||
| Statement of Operations Data |
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| Total service revenues |
$ | 7,806 | $ | 7,329 | $ | 30,160 | $ | 27,844 | $ | 24,821 | $ | 22,375 | $ | 19,068 | ||||||||||||||
| Total revenues(1) |
10,455 | 9,613 | 40,604 | 37,490 | 32,467 | 29,920 | 24,605 | |||||||||||||||||||||
| Operating income(1) |
1,282 | 1,037 | 4,888 | 4,050 | 2,479 | 1,772 | 1,181 | |||||||||||||||||||||
| Total other expense, net(1) |
(401 | ) | (430 | ) | (1,727 | ) | (1,723 | ) | (1,501 | ) | (1,359 | ) | (1,130 | ) | ||||||||||||||
| Income tax benefit (expense) |
(210 | ) | 91 | 1,375 | (867 | ) | (245 | ) | (166 | ) | (16 | ) | ||||||||||||||||
| Net income |
671 | 698 | 4,536 | 1,460 | 733 | 247 | 35 | |||||||||||||||||||||
| Net income attributable to common stockholders |
671 | 684 | 4,481 | 1,405 | 678 | 247 | 35 | |||||||||||||||||||||
| Earnings per share: |
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| Basic |
$ | 0.78 | $ | 0.83 | $ | 5.39 | $ | 1.71 | $ | 0.83 | $ | 0.31 | $ | 0.05 | ||||||||||||||
| Diluted |
$ | 0.78 | $ | 0.80 | $ | 5.20 | $ | 1.69 | $ | 0.82 | $ | 0.30 | $ | 0.05 | ||||||||||||||
| Balance Sheet Data |
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| Cash and cash equivalents |
$ | 2,527 | $ | 7,501 | $ | 1,219 | $ | 5,500 | $ | 4,582 | $ | 5,315 | $ | 5,891 | ||||||||||||||
| Property and equipment, net |
22,308 | 21,235 | 22,196 | 20,943 | 20,000 | 16,245 | 15,349 | |||||||||||||||||||||
| Spectrum licenses |
35,504 | 27,150 | 35,366 | 27,014 | 23,955 | 21,955 | 18,122 | |||||||||||||||||||||
| Total assets |
72,004 | 68,048 | 70,563 | 65,891 | 62,413 | 56,639 | 49,946 | |||||||||||||||||||||
| Total debt, excluding tower obligations |
30,478 | 30,247 | 28,319 | 27,786 | 26,243 | 21,946 | 20,182 | |||||||||||||||||||||
| Stockholders’ equity |
22,876 | 18,963 | 22,559 | 18,236 | 16,557 | 15,663 | 14,245 | |||||||||||||||||||||
| Statement of Cash Flows and Operational Data |
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| Net cash provided by operating activities(3) |
$ | 770 | $ | 608 | $ | 3,831 | $ | 2,779 | $ | 1,877 | $ | 1,957 | $ | 3,545 | ||||||||||||||
| Purchases of property and equipment |
(1,366 | ) | (1,528 | ) | (5,237 | ) | (4,702 | ) | (4,724 | ) | (4,317 | ) | (4,025 | ) | ||||||||||||||
| Purchases of spectrum licenses and other intangible assets, including deposits |
(51 | ) | (14 | ) | (5,828 | ) | (3,968 | ) | (1,935 | ) | (2,900 | ) | (381 | ) | ||||||||||||||
| Proceeds related to beneficial interests in securitization transactions(3) |
1,295 | 1,134 | 4,319 | 3,356 | 3,537 | 2,228 | — | |||||||||||||||||||||
| Net cash (used in) provided by financing activities(3) |
1,000 | 1,809 | (1,367 | ) | 463 | 3,413 | 2,485 | 4,044 | ||||||||||||||||||||
| Total customers (in thousands)(2) |
74,040 | 72,597 | 72,585 | 71,455 | 63,282 | 55,018 | 46,684 | |||||||||||||||||||||
| (1) | Effective January 1, 2017, T-Mobile changed an accounting principle. The imputed discount on Equipment Installment Plan (“EIP”) receivables, which is amortized over the financed installment term using the |
| effective interest method, and was previously presented within Interest income in T-Mobile’s Consolidated Statements of Comprehensive Income, is now presented within Other revenues in T-Mobile’s Consolidated Statements of Comprehensive Income. T-Mobile has applied this change retrospectively and presented the effect of $280 million, $248 million, $414 million, $356 million and $185 million on the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively, in the table above. See Note 1—Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of T-Mobile’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 for further information. |
| (2) | T-Mobile believes current and future regulatory changes have made the Lifeline program offered by its wholesale partners uneconomical. T-Mobile will continue to support its wholesale partners offering the Lifeline program, but has excluded the Lifeline customers from its reported wholesale subscriber base resulting in the removal of 4,528,000 reported wholesale customers in 2017 and the beginning of the second quarter of 2017. |
| (3) | On January 1, 2018, T-Mobile adopted the new cash flow standard which impacted the presentation of its cash flows related to its beneficial interests in securitization transactions, which is the deferred purchase price, resulting in a reclassification of cash inflows from Operating activities to Investing activities in its Consolidated Statements of Cash Flows. T-Mobile has applied this change retrospectively and presented the effect of $1.1 billion, $4.3 billion, $3.4 billion, $3.5 billion, $2.2 billion and $0 for the three months ended March 31, 2017 and the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively, in the table above. The new cash flow standard also impacted the presentation of T-Mobile’s cash payments for debt prepayment and extinguishment costs, resulting in a reclassification of cash outflows from Operating activities to Financing activities in its Consolidated Statements of Cash Flows. T-Mobile has applied this change retrospectively and presented the effect of $29 million, $188 million, $0, $0, $39 million and $0 for the three months ended March 31, 2017 and the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively, in the table above. See Note 1—Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements included in Part II, Item 8 of Exhibit 99.1 to T-Mobile’s Current Report on Form 8-K filed June 18, 2018 for further information. |
