Liberty Latin America : Cable & Wireless Condensed Consolidated Financial Statements – September 30, 20…

Condensed Consolidated Financial Statements

September 30, 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 September 30, 2021 and December 31, 2020 (unaudited) ..................	1
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and
2020 (unaudited).........................................................................................................................................................	2
Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30,
2021 and 2020 (unaudited).........................................................................................................................................	3
Condensed Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2021 and
2020 (unaudited).........................................................................................................................................................	4
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020
(unaudited)..................................................................................................................................................................	6
Notes to Condensed Consolidated Financial Statements (unaudited)............................................................................	7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS .............................................................................................................................................................	22

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
2026 C&W Senior Notes .....................	$500 million aggregate principal amount 7.5% senior notes due October 15, 2026
	issued by C&W Senior Finance Limited, a wholly-owned subsidiary
2027 C&W Senior Notes .....................	$1.2 billion aggregate principal amount 6.875% senior notes due September 15, 2027
	issued by C&W Senior Finance Limited, a wholly-owned subsidiary
2027 C&W Senior Secured Notes.......	$550 million aggregate principal amount, issued at 99.195% of par, of 5.75% senior
	secured notes due September 7, 2027 issued by Sable
Adjusted OIBDA..................................	Operating income or loss before share-based compensation, depreciation and
	amortization, 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
	settlement of contingent consideration.
América Móvil......................................	América Móvil S.A.B. de C.V.
ARPU ....................................................	Average monthly subscription revenue per average fixed RGU or mobile subscriber,
	as applicable
ASU .......................................................	Accounting Standards Update
B2B........................................................	Business-to-business
C&W Bahamas ....................................	The Bahamas Telecommunications Company Limited, a 49%-owned subsidiary that
	owns all of our operations in the Bahamas
C&W Caribbean and Networks.........	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-6 Facility; (ii) C&W Term Loan B-5 Facility; (iii) C&W Revolving
	Credit Facility; and (iv) 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;
	(ii) 2026 C&W Senior Notes; and (iii) 2027 C&W Senior Notes
C&W Regional Facilities.....................	Primarily comprised of credit facilities at CWP, C&W Jamaica and Columbus
	Communications Trinidad Limited
C&W Revolving Credit Facility.........	$630 million LIBOR + 3.25% revolving credit facility, of which $50 million is due
	June 30, 2023 and $580 million is due January 30, 2027
C&W Term Loan B-4 Facility............	$1,640 million principal amount term loan B-4 facility (repaid during 2020)
C&W Term Loan B-5 Facility............	$1,510 million principal amount of LIBOR + 2.25% term loan B-5 facility due
	January 31, 2028
C&W Term Loan B-6 Facility............	$590 million principal amount of LIBOR + 3.00% term loan B-6 facility due October
	15, 2029
Claro Panama ......................................	América Móvil's operations in Panama
Claro Panama Acquisition..................	Pending acquisition of Claro Panama
COP.......................................................	Colombian peso
CPE .......................................................	Customer premises equipment
CWP......................................................	Cable & Wireless Panama, S.A., a 49%-owned subsidiary that owns most of our
	operations in Panama
FASB .....................................................	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
LGE Coral Holdco Note A..................	Note receivable, bearing interest at 5.51% per annum, due from LGE Coral Holdco
	which was redeemed in full in July 2020.
LGE Coral Holdco Note B ..................	Note receivable, bearing interest at 6.59% per annum, due from LGE Coral Holdco
	which was redeemed in full in July 2020.
LGE Coral Holdco Note C..................	Note receivable, bearing interest at 4.73% per annum, due from LGE Coral Holdco
	which was redeemed in full in July 2020.
Liberty Latin America ........................	Liberty Latin America Ltd.

	GLOSSARY OF DEFINED TERMS - (Continued)
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.
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)

	September 30,		December 31,
		2021			2020
		in millions
ASSETS
Current assets:
Cash and cash equivalents...........................................................................................................	$	548.1	$	485.5
Trade receivables, net of allowances of $62.3 million and $71.5 million, respectively.............		372.0			381.1
Prepaid expenses .........................................................................................................................		45.1			33.8
Other current assets, net ..............................................................................................................		251.2			186.7
Total current assets .................................................................................................................		1,216.4			1,087.1
Goodwill .......................................................................................................................................		3,680.5			3,729.1
Property and equipment, net .........................................................................................................		2,728.6			2,810.0
Intangible assets subject to amortization, net ...............................................................................		581.5			704.9
Other assets, net ............................................................................................................................		651.5			719.5
Total assets ......................................................................................................................	$	8,858.5	$	9,050.6
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable ........................................................................................................................	$	132.1	$	124.4
Current portion of deferred revenue............................................................................................		89.3			92.1
Current portion of debt and finance lease obligations ................................................................		74.8			161.5
Accrued interest ..........................................................................................................................		49.7			69.5
Accrued payroll and employee benefits......................................................................................		50.8			57.1
Other accrued and current liabilities ..........................................................................................		490.4			484.2
Total current liabilities.........................................................................................................		887.1			988.8
Long-termdebt and finance lease obligations ..............................................................................		4,202.2			4,104.3
Deferred tax liabilities ..................................................................................................................		179.7			182.8
Deferred revenue ...........................................................................................................................		159.3			182.2
Other long-termliabilities .............................................................................................................		446.1			537.7
Total liabilities .....................................................................................................................		5,874.4			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 ..................................................................................................................		(1,540.7)			(1,515.6)
Accumulated other comprehensive loss, net of taxes ...............................................................		(254.3)			(211.2)
Total parent equity.................................................................................................................		2,279.8			2,348.0
Noncontrolling interests..............................................................................................................		704.3			706.8
Total equity ..........................................................................................................................		2,984.1			3,054.8
Total liabilities and equity...............................................................................................	$	8,858.5	$	9,050.6

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

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