Liberty Latin America : Cable & Wireless Condensed Consolidated Financial Statements – March 31, 2021

Condensed Consolidated Financial Statements

March 31, 2021

CABLE & WIRELESS COMMUNICATIONS LIMITED

Griffin House

161 Hammersmith Road

London, W6 8BS

United Kingdom

CABLE & WIRELESS COMMUNICATIONS LIMITED
TABLE OF CONTENTS
	Page
	Number
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 (unaudited)..........................	1
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020
(unaudited)...................................................................................................................................................................	2
Condensed Consolidated Statements of Comprehensive Earnings (Loss) for the Three Months Ended March 31,
2021 and 2020 (unaudited)..........................................................................................................................................	3
Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2021 and 2020 (unaudited)...	4
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020
(unaudited)...................................................................................................................................................................	5
Notes to Condensed Consolidated Financial Statements (unaudited).............................................................................	6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.............................................................................................................................................................	21

GLOSSARY OF DEFINED TERMS

Unless the context requires otherwise, references to "C&W", "we," "our," "our company" and "us" in this report refers to Cable & Wireless Communications Limited or collectively to Cable & Wireless Communications Limited and its subsidiaries. We have used several other terms in this report, most of which are defined or explained below.

2020 Annual Report.............................	Annual Report for the year ended December 31, 2020
Adjusted OIBDA..................................	Operating income or loss before depreciation and amortization, share-based
	compensation, related-party fees and allocations, provisions and provision releases
	related to significant litigation and impairment, restructuring and other operating
	items. Other operating items include (i) gains and losses on the disposition of long-
	lived assets, (ii) third-party costs directly associated with successful and unsuccessful
	acquisitions and dispositions, including legal, advisory and due diligence fees, as
	applicable, and (iii) other acquisition-related items, such as gains and losses on the
ARPU....................................................	settlement of contingent consideration.
Average monthly subscription revenue per average fixed RGU or mobile subscriber,
ASU.......................................................	as applicable
Accounting Standards Update
B2B........................................................	Business-to-business
C&W Bahamas....................................	The Bahamas Telecommunications Company Limited, a 49%-owned subsidiary that
C&W Caribbean and Networks	owns all of our operations in the Bahamas
Includes all our subsidiaries, excluding CWP
C&W Credit Facilities.........................	Senior secured credit facilities of certain subsidiaries of ours comprised of: (i) C&W
	Term Loan B-5 Facility; (ii) C&W Revolving Credit Facility; and (iii) C&W
	Regional Facilities
C&W Jamaica......................................	Cable & Wireless Jamaica Limited, a 92%-owned subsidiary
C&W Notes..........................................	Senior and senior secured notes comprised of: (i) 2027 C&W Senior Secured Notes;
C&W Regional Facilities.....................	(ii) 2026 C&W Senior Notes; and (iii) 2027 C&W Senior Notes
Primarily comprised of credit facilities at CWP, C&W Jamaica and Columbus
C&W Revolving Credit Facility.........	Communications Trinidad Limited
$630 million LIBOR + 3.25% revolving credit facility, of which $50 million is due
C&W Term Loan B-4 Facility............	June 30, 2023 and $580 million is due January 30, 2026
$1,640 million principal amount term loan B-4 facility (repaid during 2020)
COP.......................................................	Colombian peso
CPE.......................................................	Customer premises equipment
CWP......................................................	Cable & Wireless Panama, S.A., a 49%-owned subsidiary that owns most of our
FASB.....................................................	operations in Panama
Financial Accounting Standards Board
FX..........................................................	Foreign currency translation effects
JMD.......................................................	Jamaican dollar
LGE Coral Holdco...............................	LGE Coral Holdco Limited, a wholly-owned subsidiary of Liberty Latin America
Liberty Latin America........................	Liberty Latin America Ltd.
LIBOR..................................................	London Inter-Bank Offered Rate
LiLAC Services....................................	LiLAC Services Ltd., a wholly-owned subsidiary of Liberty Latin America
Networks & LatAm.............................	Business operations within C&W Caribbean and Networks
RGU......................................................	Revenue generating unit
Sable......................................................	Sable International Finance Limited, a wholly-owned subsidiary
Sable Currency Swaps.........................	U.S. dollar to the Jamaican dollar cross-currency swaps held by Sable
U.K........................................................	United Kingdom
U.S.........................................................	United States
U.S. GAAP............................................	Generally accepted accounting principles in the United States
UTS.......................................................	United Telecommunication Services N.V.
UTS Acquisition...................................	Acquisition of UTS in 2019
VAT.......................................................	Value-added taxes
Weather Derivative..............................	Weather derivative contract that provides insurance coverage for certain weather-
	related events

CABLE & WIRELESS COMMUNICATIONS LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

		March 31,		December 31,
		2021			2020
		in millions
ASSETS
Current assets:
Cash and cash equivalents...........................................................................................................	$	474.7	$	485.5
Trade receivables, net of allowances of $69.3 million and $71.5 million, respectively.............		379.5			381.1
Prepaid expenses.........................................................................................................................		37.1			33.8
Other current assets, net..............................................................................................................		204.9			186.7
Total current assets.................................................................................................................		1,096.2			1,087.1
Goodwill .......................................................................................................................................		3,695.6			3,729.1
Property and equipment, net .........................................................................................................		2,749.4			2,810.0
Intangible assets subject to amortization, net ...............................................................................		659.0			704.9
Other assets, net ............................................................................................................................		744.7			719.5
Total assets......................................................................................................................	$	8,944.9	$	9,050.6
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable........................................................................................................................	$	118.2	$	124.4
Current portion of deferred revenue............................................................................................		87.0			92.1
Current portion of debt and finance lease obligations................................................................		164.5			161.5
Accrued interest..........................................................................................................................		49.6			69.5
Accrued payroll and employee benefits......................................................................................		35.3			47.7
Accrued capital expenditures......................................................................................................		21.5			23.7
Other accrued and current liabilities ..........................................................................................		454.8			469.9
Total current liabilities.........................................................................................................		930.9			988.8
Long-termdebt and finance lease obligations ..............................................................................		4,101.7			4,104.3
Deferred tax liabilities ..................................................................................................................		179.6			182.8
Deferred revenue...........................................................................................................................		169.6			182.2
Pension liabilities...........................................................................................................................		275.4			272.2
Other long-termliabilities .............................................................................................................		194.9			265.5
Total liabilities.....................................................................................................................		5,852.1			5,995.8
Commitments and contingencies
Equity:
Parent equity:
Share capital..............................................................................................................................		0.1			0.1
Accumulated net contributions..................................................................................................		4,074.7			4,074.7
Accumulated deficit..................................................................................................................		(1,448.3)			(1,515.6)
Accumulated other comprehensive loss, net of taxes...............................................................		(241.6)			(211.2)
Total parent equity.................................................................................................................		2,384.9			2,348.0
Noncontrolling interests..............................................................................................................		707.9			706.8
Total equity..........................................................................................................................		3,092.8			3,054.8
Total liabilities and equity...............................................................................................	$	8,944.9	$	9,050.6

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CABLE & WIRELESS COMMUNICATIONS LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three months ended

March 31,

		2021			2020
		in millions
Revenue ...............................................................................................................................................	$	549.9	$	588.6
Operating costs and expenses (exclusive of depreciation and amortization, shown separately
below):
Programming and other direct costs of services...............................................................................		108.1			122.1
Other operating costs and expenses..................................................................................................		223.4			241.1
Related-partyfees and allocations....................................................................................................		5.3			11.0
Depreciation and amortization..........................................................................................................		145.9			147.6
Impairment, restructuring and other operating items, net.................................................................		(0.8)			9.2
		481.9			531.0
Operating income..........................................................................................................................		68.0			57.6
Non-operating income (expense):
Interest expense................................................................................................................................		(58.4)			(66.8)
Interest income..................................................................................................................................		0.5			4.1
Realized and unrealized gains (losses) on derivative instruments, net.............................................		85.0			(94.8)
Foreign currency transaction losses, net...........................................................................................		(18.9)			(31.5)
Losses on debt extinguishment.........................................................................................................		-			(3.4)
Other expense, net............................................................................................................................		(0.6)			(0.3)
		7.6			(192.7)
Earnings (loss) before income taxes................................................................................................		75.6			(135.1)
Income tax expense..............................................................................................................................		(7.0)			(8.7)
Net earnings (loss).........................................................................................................................		68.6			(143.8)
Net loss (earnings) attributable to noncontrolling interests..................................................................		(1.3)			4.0
Net earnings (loss) attributable to parent......................................................................................	$	67.3	$	(139.8)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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