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Trilogy International Partners Inc. Reports Third Quarter 2019 Results

  • Continued strength in subscriber net additions across all customer groups in New Zealand, with broadband and postpaid net additions increasing by 170% and 29%, respectively, over the third quarter of last year.
  • Combined postpaid, prepaid, and wireline service revenues in New Zealand increased 9% over the third quarter of last year on an organic basis, which excludes the adverse impact of foreign currency exchange of $2.4 million, or 3%, and new revenue standard adoption, which had an insignificant impact. These New Zealand subscriber revenues, as reported, increased 6% over the third quarter of last year.
  • New Zealand Adjusted EBITDA for the third quarter increased 6% year-over-year on an organic basis, which excludes the benefit of the new revenue standard adoption of $2.4 million, or 9%, and offsetting foreign currency exchange headwinds of $0.7 million, or 3%. New Zealand Adjusted EBITDA, as reported, increased 12% over the third quarter of last year.
  • Bolivian postpaid subscriber base and postpaid revenue stability year to date 2019 have been overshadowed by continued prepaid pricing pressure. Focus remains on broadening uptake of ‘bring your own device’ unlimited plans and cost management efforts.   

BELLEVUE, Wash., Nov. 06, 2019 (GLOBE NEWSWIRE) -- Trilogy International Partners Inc. (“TIP Inc.” or the “Company”) (TRL.TO), an international wireless and fixed broadband telecommunications operator, today announced its unaudited financial and operating results for the third quarter of 2019.

“We are pleased with our performance in the third quarter, which has maintained the momentum established in the first half of the year”, said Brad Horwitz, President and CEO. “In New Zealand, we continued to post solid growth across all our customer groups, including our highest postpaid gross additions since the third quarter of 2016 and another very strong quarter for broadband activations. This has translated into improved topline results on a sequential and year-over-year basis which has positioned 2degrees well to meet or exceed their guidance.”    

“In Bolivia, competitive dynamics remain elevated but we see some signs of sequential stability in our postpaid subscriber base and corresponding revenue. However, the current election-related disruption is negatively impacting business activities in the country. While we believe this impact is temporary, sales and recharge activity are being affected during this period of instability.”   

Consolidated Financial Highlights

    Three Months Ended September 30, Nine Months Ended September 30,
  (US dollars in millions unless otherwise noted, unaudited)(1) 2019   2018   % Chg   2019   2018   % Chg  
               
  Total revenues 160.5   190.4   (16 %) 527.8   591.2   (11 %)
               
  Service revenues 134.1   141.0   (5 %) 405.3   437.6   (7 %)
               
  Net loss (5.1 ) (13.9 ) 63 % (14.4 ) (27.5 ) 48 %
               
  Adjusted EBITDA(2) 33.4   37.4   (11 %) 106.1   107.7   (1 %)
  Adjusted EBITDA margin(2) 24.9 % 26.5 % n/m   26.2 % 24.6 % n/m  
               
n/m - not meaningful            
Notes:            
(1)On January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”.  Financial information prior to our adoption date has not been adjusted. See “About this press release” below for further detail.
(2)These are non-U.S. GAAP measures and do not have standardized meanings under generally accepted accounting principles in the United States ("U.S. GAAP"). Therefore, they are unlikely to be comparable to similar measures presented by other companies. For definitions and a reconciliation with the most directly comparable U.S. GAAP financial measures, see “Non-GAAP Measures and Other Financial Measures; Basis of Presentation” herein.

Conference Call Information

Call Date: Thursday, November 7, 2019
Call Time: 10:30 a.m. (PT)

US Toll Free: 1-844-826-3035
Canada Toll Free: 1-855-669-9657
International Toll: 1-412-317-5144

Please ask the operator to be joined into the Trilogy International Partners (TRL) call. 

Online info (audio only): http://www.trilogy-international.com/events-and-presentations
Live simulcast (listen only) available during the call. Participants should register on the website approximately 10 minutes prior to the start of the webcast.

A replay of the conference call will be available at approximately 12:30 p.m. (PT) the day of the live call. Replay dial-in access is as follows:

US Toll Free: 1-877-344-7529
Canada Toll Free: 1-855-669-9658
International Toll: 1-412-317-0088
Replay Access Code: 10135119

About Trilogy International Partners Inc.

TIP Inc. is the parent of Trilogy International Partners LLC (“Trilogy LLC”), an international wireless and fixed broadband telecommunications operator formed by wireless industry veterans John Stanton, Theresa Gillespie and Brad Horwitz. Trilogy LLC’s founders have an exceptional track record of successfully buying, building, launching and operating communications businesses in 15 international markets and the United States.

Trilogy LLC, together with its consolidated subsidiaries in New Zealand and Bolivia, is a provider of wireless voice and data communications services including local, international long distance and roaming services, for both subscribers and international visitors roaming on its networks. Trilogy LLC also provides fixed broadband communications services to residential and enterprise customers in New Zealand. 

Trilogy LLC completed a transaction with Alignvest Acquisition Corporation (“AQX”) on February 7, 2017 (the “Arrangement”). For accounting purposes, the Arrangement was treated as a “reverse acquisition” and recapitalization. Trilogy LLC was considered the accounting acquirer and upon closing AQX was renamed Trilogy International Partners Inc. Accordingly, Trilogy LLC’s historical financial statements as of and for the periods ended prior to the acquisition became the historical financial statements of TIP Inc. prior to the date of the transaction.   

Unless otherwise stated, the financial information provided herein is for TIP Inc. as of September 30, 2019.

TIP Inc.’s head office is located at 155 108th Avenue NE, Suite 400, Bellevue, Washington, 98004 USA. TIP Inc.’s common shares (the “Common Shares”) trade on the Toronto Stock Exchange under the ticker TRL and its warrants trade on such exchange under the ticker TRL.WT.

For more information, visit www.trilogy-international.com.

Business segments

TIP Inc.’s reportable segments are New Zealand and Bolivia.  Segment information is regularly reported to our Chief Executive Officer (the chief operating decision-maker).  Segments and the nature of their businesses are as follows:

Segment Principal activities
Bolivia Wireless telecommunications operations for Bolivian consumers and businesses.
New Zealand Wireless telecommunications operations for New Zealand consumers and businesses; broadband network connectivity through fiber network assets to support a range of voice, data and networking for New Zealand consumers, businesses and governments.

About this press release

This press release contains information about our business and performance for the three and nine months ended September 30, 2019, as well as forward-looking information about our 2019 fiscal year and assumptions. See “About Forward-Looking Information” for more information. This discussion should be read together with supplementary information filed on the date hereof under TIP Inc.’s profile on SEDAR (www.sedar.com) and EDGAR (www.sec.gov). 

The financial information included in this press release was prepared in accordance with U.S. GAAP. In our discussion, we also use certain non-U.S. GAAP financial measures to evaluate our performance. See “Non-GAAP Measures and Other Financial Measures; Basis of Presentation” for more information.  

Certain amounts in the prior period Condensed Consolidated Balance Sheet have been reclassified to conform to the current presentation related to certain deferred tax liabilities and the tax paying components to which they apply.

In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” and has since modified the standard with several ASUs (collectively, the “new revenue standard”). We adopted this new revenue standard on January 1, 2019, using the modified retrospective method. This method requires the cumulative effect of initially applying the standard to be recognized at the date of adoption. Financial information prior to our adoption date has not been adjusted. See “Note 1 – Description of Business, Basis of Presentation and Summary of Significant Accounting Policies” and “Note 11 – Revenue from Contracts with Customers” to the Condensed Consolidated Financial Statements filed on the date hereof under TIP Inc.’s profile on SEDAR (www.sedar.com) and EDGAR (www.sec.gov) for further information.

All dollar amounts are in United States dollars (“USD”) unless otherwise stated. In New Zealand, the Company generates revenues and incurs costs in New Zealand dollars (“NZD”). Fluctuations in the value of the NZD relative to the USD can increase or decrease the Company’s overall revenue and profitability as stated in USD, which is the Company’s reporting currency. The following table sets forth for each period indicated the exchange rates in effect at the end of the period and the average exchange rates for such periods, for the NZD, expressed in USD.

    September 30, 2019     December 31, 2018     % Change
  End of period NZD to USD exchange rate 0.63     0.67     (7 %)
                                   
    Three Months Ended     Nine Months Ended
    September 30, 2019     September 30, 2019
    2019     2018     % Change     2019     2018     % Change
  Average NZD to USD exchange rate 0.65     0.67     (3 %)     0.66     0.70     (5 %)

Amounts for subtotals, totals and percentage changes included in tables in this press release may not sum or calculate using the numbers as they appear in the tables due to rounding. Differences between amounts set forth in the following tables and corresponding amounts in TIP Inc.’s Condensed Consolidated Financial Statements and related notes for the period ended September 30, 2019 are a result of rounding. Information is current as of November 6, 2019, and was approved by TIP Inc.’s Board of Directors. This press release includes forward-looking statements and assumptions. See “About Forward-Looking Information” for more information. 

Additional information relating to TIP Inc., including our financial statements, Management’s Discussion and Analysis for the three and nine months ended September 30, 2019 and for the year ended December 31, 2018, Annual Information Form for the year ended December 31, 2018, and other filings with Canadian securities commissions and the U.S. Securities and Exchange Commission, is available on TIP Inc.’s website (www.trilogy-international.com) in the investor relations section and under TIP Inc.’s profile on SEDAR (www.sedar.com) and EDGAR (www.sec.gov).

Consolidated Financial Results

    Three Months Ended September 30, Nine Months Ended September 30,
  (US dollars in millions unless otherwise noted, unaudited) 2019   2018   % Chg 2019   2018   % Chg
               
  Revenues            
  New Zealand 109.9   129.6    (15 %) 368.8   408.2    (10 %)
  Bolivia 50.4   60.5    (17 %) 158.4   182.4    (13 %)
  Unallocated Corporate & Eliminations 0.2   0.3    (32 %) 0.6   0.6    (9 %)
  Total revenues 160.5   190.4    (16 %) 527.8   591.2    (11 %)
               
  Total service revenues 134.1   141.0    (5 %) 405.3   437.6    (7 %)
               
  Net loss (5.1 ) (13.9 ) 63 % (14.4 ) (27.5 ) 48 %
               
  Adjusted EBITDA            
  New Zealand 26.7   23.8   12 % 79.0   64.6   22 %
  Bolivia 9.5   16.9    (44 %) 35.0   52.1    (33 %)
  Unallocated Corporate & Eliminations (2.8 ) (3.2 ) 13 % (7.9 ) (9.0 ) 12 %
  Adjusted EBITDA(1)  33.4   37.4    (11 %) 106.1   107.7    (1 %)
  Adjusted EBITDA margin(1)(2) 24.9 % 26.5 % n/m 26.2 % 24.6 % n/m
               
  Cash provided by operating activities 27.0   16.9   60 % 33.7   29.1   16 %
               
  Capital expenditures(3)  23.4   20.0   17 % 64.4   58.3   10 %
  Capital intensity 17 % 14 % n/m 16 % 13 % n/m
n/m - not meaningful            
Notes:            
(1)These are non-U.S. GAAP measures and do not have standardized meanings under U.S. GAAP. Therefore, they are unlikely to be comparable to similar measures presented by other companies. For definitions and a reconciliation with the most directly comparable U.S. GAAP financial measures, see “Non-GAAP Measures and Other Financial Measures; Basis of Presentation” herein.
(2)Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Service revenues.
(3)Represents purchases of property and equipment excluding purchases of property and equipment acquired through vendor-backed financing and capital lease arrangements.
 

Results of Our Business Segments

New Zealand

Financial Results

      Three Months Ended September 30, Nine Months Ended September 30,  
  (US dollars in millions unless otherwise noted, unaudited)   2019   2018   % Chg 2019   2018   % Chg  
                   
  Revenues                
  Wireless service revenues   66.1   63.7   4 % 196.0   201.2   (3 %)  
  Wireline service revenues   17.5   15.0   17 % 51.3   46.0   11 %  
  Non-subscriber ILD and other revenues   1.6   2.6   (36 %) 5.1   9.7   (48 %)  
  Service revenues   85.2   81.2   5 % 252.4   256.9   (2 %)  
  Equipment sales   24.7   48.5   (49 %) 116.4   151.3   (23 %)  
  Total revenues   109.9   129.6   (15 %) 368.8   408.2   (10 %)  
  Adjusted EBITDA(1)   26.7   23.8   12 % 79.0   64.6   22 %  
  Adjusted EBITDA margin(2)   31.3 % 29.3 % n/m 31.3 % 25.1 % n/m  
                   
  Capital expenditures(3)   18.2   9.9   84 % 49.2   35.9   37 %  
  Capital intensity   21 % 12 % n/m 20 % 14 % n/m  
                   
                   
Subscriber Results                
                   
      Three Months Ended September 30, Nine Months Ended September 30,  
  (Thousands unless otherwise noted)   2019   2018   % Chg 2019   2018   % Chg  
                   
  Postpaid                
  Gross additions   27.6   23.7   16 % 74.9   70.9   6 %  
  Net additions   12.1   9.3   29 % 33.1   21.6   53 %  
  Total postpaid subscribers   463.2   417.7   11 % 463.2   417.7   11 %  
  Prepaid                
  Net additions (losses)   7.7   (44.8 ) 117 % (3.5 )  (86.4)(4) 96 %  
  Total prepaid subscribers   962.0   938.7   2 % 962.0   938.7   2 %  
  Total wireless subscribers   1,425.2   1,356.4   5 % 1,425.2   1,356.4   5 %  
                   
  Wireline                
  Gross additions   14.3   8.3   72 % 35.6   23.0   55 %  
  Net additions   8.5   3.2   170 % 20.1   9.3   117 %  
  Total wireline subscribers   101.9   77.8   31 % 101.9   77.8   31 %  
  Total subscribers   1,527.1   1,434.1   6 % 1,527.1   1,434.1   6 %  
                   
  Monthly blended wireless ARPU ($, not rounded)   15.56   15.44   1 % 15.44   16.10   (4 %)  
  Monthly postpaid wireless ARPU ($, not rounded)   31.93   33.84   (6 %) 31.85   35.13   (9 %)  
  Monthly prepaid wireless ARPU ($, not rounded)   7.60   7.44   2 % 7.66    7.78 (4) (2 %)  
  Monthly residential wireline ARPU ($, not rounded)   45.59   47.09   (3 %) 46.54   50.36   (8 %)  
  Blended wireless churn   2.4 % 3.5 % n/m 2.6 % 3.2%(4) n/m  
  Postpaid churn   1.3 % 1.4 % n/m 1.3 % 1.6 % n/m  
n/m - not meaningful                
Notes:                
(1)These are non-U.S. GAAP measures and do not have standardized meanings under U.S. GAAP. Therefore, they are unlikely to be comparable to similar measures presented by other companies. For definitions and a reconciliation with the most directly comparable U.S. GAAP financial measures, see “Non-GAAP Measures and Other Financial Measures; Basis of Presentation” herein.  
(2)Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Service revenues.  
(3)Represents purchases of property and equipment excluding purchases of property and equipment acquired through vendor-backed financing and capital lease arrangements.  
(4)Includes approximately 37 thousand deactivations of prepaid wireless subscribers in the nine months ended September 30, 2018 relating to the 2G network shutdown that occurred in the first quarter of 2018. Exclusive of these deactivations resulting from the 2G network shutdown, prepaid net losses would have been 50 thousand, blended wireless churn would have been 2.87% and monthly prepaid wireless ARPU would have been $7.64 for the nine months ended September 30, 2018.  

Revenues

Our New Zealand total revenues declined by $19.7 million, or 15%, for the three months ended September 30, 2019, compared to the same period in 2018, primarily due to a decrease of $23.8 million, or 49%, in equipment sales. This decrease in equipment sales was primarily the result of a decrease in the number of handsets sold due to the discontinuation of an exclusivity arrangement with a retail distributor and reseller of 2degrees wireless handsets during the third quarter of 2019, coupled with lower handset prices over the same period last year. Additionally, total revenues were impacted by a 3% decline in foreign currency exchange. Service revenues increased $4.1 million, or 5%, for the three months ended September 30, 2019, compared to the same period in 2018 primarily due to the following:

  • Postpaid service revenues increased by $1.9 million, or 4%. Excluding the impact of foreign currency exchange, postpaid service revenues increased $3.1 million, or 8%, for the three months ended September 30, 2019 compared to the same period in 2018 driven by an 11% increase in the subscriber base, partially offset by a 3% ARPU decline primarily due to business subscribers transitioning from legacy postpaid plans into Equipment Installment Plans (“EIPs”);
  • Prepaid service revenues increased by $0.4 million, or 2%. Excluding the impact of foreign currency exchange, prepaid service revenues increased $1.1 million, or 5%, compared to the same period in 2018, primarily as a result of an increase in prepaid ARPU driven largely by higher value plans and increased data consumption; and
  • Wireline service revenues increased by $2.6 million, or 17%. This increase was driven by a 31% year-over-year growth in the wireline customer base, partially offset by an ARPU decline of 3%.   

Adjusted EBITDA

Our New Zealand Adjusted EBITDA increased by $1.3 million, or 6%, on an organic basis compared to the third quarter of 2018. This increase excludes a benefit from the implementation of the new revenue standard of $2.4 million, or 9%, and foreign currency exchange headwinds of $0.7 million, or 3%. On a reported basis our Adjusted EBITDA increased $2.9 million, or 12%, compared to the third quarter of 2018. This increase in Adjusted EBITDA was primarily the result of an increase in service revenues and changes in operating costs as follows:

  • Cost of service increased by $1.3 million, or 5%, primarily due to a $1.8 million increase in transmission expense associated with the growth in broadband subscribers;
  • Sales and marketing was flat over the same period in 2018. As anticipated, New Zealand incurred $1.5 million higher advertising expenses in the third quarter of 2019, compared to the same period in 2018, following lower levels of advertising spending in the first half of 2019. The increase in spending was attributable to the 2degrees 10th Anniversary brand campaign and was offset by a $1.8 million decrease in commission costs related to the implementation of the new revenue standard;
  • General and administrative increased by $0.3 million, or 2%, primarily as a result of an increase in individually insignificant administrative costs, partially offset by a reduction in bad debt expense due primarily to improved credit management processes; and
  • Cost of equipment sales declined by $24.8 million, or 49%, primarily due to a decrease in the number of handset sold as a result of the aforementioned change in the exclusivity arrangement with a retail distributor, coupled with a decline in the volume of higher costs handsets sold.

Capital Expenditures

Capital expenditures increased by $8.3 million, or 84%, compared to the same period in 2018. These increases were primarily due to the timing of those expenditures as well as network capacity investments.

Bolivia

Financial Results

    Three Months Ended September 30, Nine Months Ended September 30,  
  (US dollars in millions unless otherwise noted, unaudited) 2019   2018   % Chg 2019   2018   % Chg  
                 
  Revenues              
  Wireless service revenues 48.0   59.2   (19 %) 150.4   178.6   (16 %)  
  Non-subscriber ILD and other revenues 0.6   0.4   49 % 1.8   1.5   24 %  
  Service revenues 48.7   59.6   (18 %) 152.3   180.1   (15 %)  
  Equipment sales 1.7   0.9   87 % 6.2   2.4   158 %  
  Total revenues 50.4   60.5   (17 %) 158.4   182.4   (13 %)  
                 
  Adjusted EBITDA(1)  9.5   16.9   (44 %) 35.0   52.1   (33 %)  
  Adjusted EBITDA margin(2) 19.5 % 28.3 % n/m 23.0 % 28.9 % n/m  
                 
  Capital expenditures(3)  5.2   10.0   (48 %) 15.1   22.2   (32 %)  
  Capital intensity 11 % 17 % n/m 10 % 12 % n/m  
                 
                 
Subscriber Results              
                 
    Three Months Ended September 30, Nine Months Ended September 30,  
  (Thousands unless otherwise noted) 2019   2018   % Chg 2019   2018   % Chg  
                 
  Postpaid              
  Gross additions 17.5   13.7   27 % 49.4   43.2   14 %  
  Net additions (losses) 0.2   0.4   (46 %) (4.5 ) 5.3   (185 %)  
  Total postpaid subscribers 332.2   346.2   (4 %) 332.2   346.2   (4 %)  
  Prepaid              
  Net losses (7.8 ) (179.4 ) 96 % (44.7 ) (106.3 ) 58 %  
  Total prepaid subscribers 1,589.4   1,692.4   (6 %) 1,589.4   1,692.4   (6 %)  
  Total wireless subscribers(4)  1,982.8   2,097.7   (5 %) 1,982.8   2,097.7   (5 %)  
                 
                 
  Monthly blended wireless ARPU ($, not rounded) 8.06   9.02   (11 %) 8.33   9.23   (10 %)  
  Monthly postpaid wireless ARPU ($, not rounded) 20.68   22.39   (8 %) 20.33   22.54   (10 %)  
  Monthly prepaid wireless ARPU ($, not rounded) 5.14   6.08   (15 %) 5.54   6.27   (12 %)  
  Blended wireless churn 7.2 % 8.9 % n/m 6.8 % 8.3 % n/m  
  Postpaid churn 2.0 % 1.6 % n/m 2.0 % 1.7 % n/m  
n/m - not meaningful  
Notes:  
(1)These are non-U.S. GAAP measures and do not have standardized meanings under U.S. GAAP. Therefore, they are unlikely to be comparable to similar measures presented by other companies. For definitions and a reconciliation with the most directly comparable U.S. GAAP financial measures, see “Non-GAAP Measures and Other Financial Measures; Basis of Presentation” herein.  
(2)Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Service revenues.  
(3)Represents purchases of property and equipment excluding purchases of property and equipment acquired through vendor-backed financing and capital lease arrangements.  
(4)Includes public telephony and other wireless subscribers.  

Revenues

Our Bolivia total revenues declined by $10.1 million, or 17%, for the three months ended September 30, 2019, compared to the same period in 2018, primarily due to a decrease in service revenues of $10.9 million, or 18%, partially offset by an increase in equipment sales of $0.8 million largely due to the implementation of the new revenue standard and the related revenue reallocation. This decline was primarily due to a $7.9 million decrease in prepaid revenues. Additionally, postpaid revenues declined $2.6 million, of which $1.1 million related to the implementation of the new revenue standard and related reallocation from service revenues to equipment revenue. LTE adoption increased to 43% as of September 30, 2019, from 28% as of September 30, 2018. Demand for data continues to increase as data consumption per customer in the third quarter of 2019 nearly doubled compared to the same period last year. However, data pricing continues to be impacted by competitive pressures in the market.

Adjusted EBITDA

Our Bolivia Adjusted EBITDA declined by $7.4 million, or 44%, for the three months ended September 30, 2019, compared to the same period in 2018, primarily due to the decrease in service revenues, partially offset by lower operating expenses largely due to the following:

  • Cost of service declined $0.3 million, or 1%, primarily due to a decrease in interconnection costs as a result of lower voice and SMS traffic terminating outside of our network as well as a combination of individually insignificant items. These decreases were mostly offset by an increase in the net site costs of $0.9 million as a result of the tower sale-leaseback transaction;
  • Sales and marketing declined $1.2 million, or 13%, due to a $0.9 million reduction in commission expense associated with the implementation of the new revenue standard; and
  • Cost of equipment sales decreased $1.0 million, or 28%, mainly due to a 37% decline in the number of handsets sold.

These decreases in operating expenses were partially offset by the following:

  • General and administrative increased $0.5 million, or 6%, primarily due to higher transaction taxes associated with the second closing of the tower sale-leaseback transaction as well as increased consulting costs.

Capital Expenditures

Capital expenditures declined by $4.8 million, or 48%, for the three months ended September 30, 2019, compared to the same period in 2018, mainly due to the timing of spending on LTE coverage.

Review of Consolidated Performance

    Three Months Ended Nine Months Ended  
    September 30, September 30,  
  (US dollars in millions, unaudited) 2019   2018   % Chg 2019   2018   % Chg  
                 
  Consolidated adjusted EBITDA (1) 33.4   37.4   (11 %) 106.1   107.7   (1 %)  
  Consolidated adjusted EBITDA margin(1)(2) 24.9 % 26.5 % n/m 26.2 % 24.6 % n/m  
                 
  (Deduct) add:              
  Finance costs(3) (11.2 ) (15.3 ) 27 % (34.7 ) (37.9 ) 8 %  
  Change in fair value of warrant liability 0.2   0.9   (83 %) (0.2 ) 6.1   (102 %)  
  Depreciation, amortization and accretion (27.5 ) (28.2 ) 2 % (81.9 ) (84.9 ) 3 %  
  Income tax expense (0.8 ) (0.9 ) 17 % (3.6 ) (4.9 ) 28 %  
  Other(4) 0.9   (7.9 ) 111 % (0.1 ) (13.6 ) 99 %  
  Net loss (5.1 ) (13.9 ) 63 % (14.4 ) (27.5 ) 48 %  
n/m - not meaningful  
Notes:  
(1)These are non-U.S. GAAP measures and do not have standardized meanings under U.S. GAAP. Therefore, they are unlikely to be comparable to similar measures presented by other companies. For definitions and a reconciliation with the most directly comparable U.S. GAAP financial measures, see “Non-GAAP Measures and Other Financial Measures; Basis of Presentation” herein.  
(2)Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Service revenues.  
(3)Finance costs includes Interest expense and Debt modification and extinguishment costs. For a description of these costs, see "Finance Costs" below.  
(4)Other includes the following: Equity-based compensation, Gain on disposal assets and sale-leaseback transaction, Transaction and other nonrecurring costs and Other, net.  

Earnings per share

    Three Months Ended Nine Months Ended
    September 30, September 30,
  (US dollars in millions except per share data, unaudited)   2019     2018     2019     2018  
           
  Net loss attributable to Trilogy International        
  Partners Inc. ($4.8 ) ($8.4 ) ($14.4 ) ($16.3 )
           
  Weighted Average Common Shares Outstanding:        
  Basic    56,755,346      54,042,355      56,519,875      53,239,125  
  Diluted    56,755,346      82,431,972      56,519,875      82,106,475  
           
  Loss Per Share:        
  Basic ($0.08 ) ($0.15 ) ($0.25 ) ($0.31 )
  Diluted ($0.08 ) ($0.15 ) ($0.25 ) ($0.32 )
           

Finance costs

    Three Months Ended Nine Months Ended
    September 30, September 30,
  (US dollars in millions, unaudited) 2019 2018 % Chg 2019 2018 % Chg
               
  Interest on borrowings, net of capitalized interest            
  New Zealand 2.5 2.7 (8 %) 8.7 8.4 4 %
  Bolivia 0.4 0.2 176 % 1.2 0.7 74 %
  Corporate 8.3 8.2 1 % 24.8 24.6 1 %
  Total Interest on borrowings 11.2 11.1 1 % 34.7 33.7 3 %
               
  Debt modification and extinguishment costs - 4.2 (100 %) - 4.2 (100 %)
  Total finance costs 11.2 15.3 (27 %) 34.7 37.9 (8 %)

Debt modification and extinguishment costs

Debt modification and extinguishment costs declined $4.2 million for the three months ended September 30, 2019 compared to the same period in 2018. This decline was due to the refinancing of 2degrees’ senior debt facility during the third quarter of 2018.

Change in fair value of warrant liability

As of February 7, 2017, in connection with the completion of the Arrangement, TIP Inc.’s outstanding warrants were classified as a liability, as the warrants are written options that are not indexed to the Common Shares. The warrant liability is marked-to-market each reporting period with the changes in fair value recorded as a gain or loss in the Condensed Consolidated Statement of Operations. The non-cash gain from the change in fair value of the warrant liability decreased by $0.8 million for the three months ended September 30, 2019, compared to the same period in 2018, due to changes in the trading price of the warrants.

Depreciation, amortization and accretion

...
    Three Months Ended Nine Months Ended
    September 30, September 30,
  (US dollars in millions, unaudited) 2019 2018 % Chg 2019 2018 % Chg
               
  New Zealand 16.1 16.7 (4 %) 47.4 50.5 (6 %)
  Bolivia 11.3 11.3 (0 %) 34.0 33.9