Exhibit 99.2
Frontier (FYBR)Investor Presentation April 30, 2021
Safe Harbor statement This presentation contains "forward-looking statements," related to future events. Forward-looking statements address Frontier’s expected future business, financial performance, and financial condition, and contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "may," "will," "would," or "target." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include, but are not limited to: our ability to realize the anticipated benefits of the financial restructuring of our existing debt, existing equity interests and certain other obligations pursuant to the Fifth Amended Joint Plan of Reorganization of Frontier Communications Corporation and Its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code; our ability to comply with the restrictions imposed by covenants in our financing; declines in revenue from our voice services, switched and nonswitched access and video and data services that we cannot stabilize or offset with increases in revenue from other products and services; our ability to successfully implement strategic initiatives, including opportunities to enhance revenue and realize productivity improvements; our ability to effectively manage our operations, operating expenses, capital expenditures, debt service requirement and cash paid for income taxes and liquidity; competition from cable, wireless and wireline carriers, satellite, and over the top companies, and the risk that we will not respond on a timely or profitable basis; our ability to successfully adjust to changes in the communications industry, including the effects of technological changes and competition on our capital expenditures, products and service offerings; risks related to disruption in our networks, infrastructure and information technology that result in customer loss and/or incurrence of additional expenses; the impact of potential information technology or data security breaches or other cyber-attacks or other disruptions; our ability to retain or attract new customers and to maintain relationships with customers, employees or suppliers; our ability to secure, continue to use or renew intellectual property and other licenses used in our business; changes to our board of directors and management team upon emergence from bankruptcy or in anticipation of emergence, and our ability to hire or retain key personnel; our ability to dispose of certain assets or asset groups on terms that are attractive to us, or at all; the effects of changes in the availability of federal and state universal service funding or other subsidies to us and our competitors and our ability to obtain future subsidies, including participation in the proposed RDOF program; our ability to meet our CAF II obligations and the risk of penalties or obligations to return certain CAF II funds; our ability to defend against litigation and potentially unfavorable results from current pending and future litigation; our ability to comply with applicable federal and state consumer protection requirements; the effects of state regulatory requirements that could limit our ability to transfer cash among our subsidiaries or dividend funds up to the parent company; the effects of governmental legislation and regulation on our business, including costs, disruptions, possible limitations on operating flexibility and changes to the competitive landscape resulting from such legislation or regulation; the impact of regulatory, investigative and legal proceedings and legal compliance risks; government infrastructure projects (such as highway construction) that impact our capital expenditures; continued reductions in switched access revenues as a result of regulation, competition or technology substitutions; our ability to effectively manage service quality in the states in which we operate and meet mandated service quality metrics; the effects of changes in income tax rates, tax laws, regulations or rulings, or federal or state tax assessments, including the risk that such changes may benefit our competitors more than us, as well as potential future decreases in the value of our deferred tax assets; the effects of changes in accounting policies or practices, including potential future impairment charges with respect to our intangible assets or additional losses on assets held for sale; the effects of increased medical expenses and pension and postemployment expenses; our ability to successfully renegotiate union contracts; changes in pension plan assumptions, interest rates, discount rates, regulatory rules and/or the value of our pension plan assets, which could require us to make increased contributions to the pension plan in 2020 and beyond; adverse changes in economic, political and market conditions in the areas that we serve, the U.S. and globally, including but not limited to, changes resulting from epidemics, pandemics and outbreaks of contagious diseases, including the COVID-19 pandemic, or other adverse public health developments; potential adverse impacts of the COVID-19 pandemic on our business and operations, including potential disruptions to the work of our employees arising from health and safety measures such as social distancing and working remotely, our ability to effectively manage increased demand on our network, our ability to maintain relationships with our current or prospective customers and vendors as well as their abilities to perform under current or proposed arrangements with us, and stress on our supply chain; the trading price and volatility of our common stock; and the risks and other factors contained in Frontier’s filings with the U.S. Securities and Exchange Commission, including our most recent report on Form 10-K. These risks and uncertainties may cause actual future results to be materially different than those expressed in such forward-looking statements. Frontier has no obligation to update or revise these forward-looking statements and does not undertake to do so.Non-GAAP Financial MeasuresCertain financial measures included herein, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses and Operating Free Cash Flow, are not made in accordance with U.S. GAAP, and use of such terms varies from others in the same industry. Non-GAAP financial measures should not be considered as alternatives to net income (loss), net income margin or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance or cash flows as measures of liquidity. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. This presentation includes a reconciliation of certain non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. GAAP. Projected GAAP financial measures and reconciliations of projected non-GAAP financial measures are not provided herein because such GAAP financial measures are not available on a forward-looking basis and such reconciliations could not be derived without unreasonable effort.This presentation uses the term “Implied Enterprise Value”, “Implied EV” and other similar terms, which is calculated using a trend line implied by our peers and certain assumed levels of broadband penetration. This term does not necessarily represent our actual enterprise value. Note Regarding Classifications of ResultsUnless otherwise indicated, the information presented herein, including operational, non-GAAP measures, and commentary pertain to the Remaining Properties only. “Remaining Properties,” as defined in Frontier’s 10-K for the year ended December 31, 2020, comprises the 25 states Frontier currently operates in and excludes Washington, Oregon, Idaho, and Montana due to the divestiture of operations and assets in these states effective May 1, 2020. “Consolidated” refers to the entire business, which may include financial data from Washington, Oregon, Idaho, and Montana for the periods through May 1, 2020. References to “Northwest Ops” refer to the metrics of the four Northwest states. Forward looking language
John StrattonExecutive Chairman of the Board 3 Today’s presenters… Nick JefferyChief ExecutiveOfficer Sheldon BruhaChief FinancialOfficer
The path forward John StrattonExecutive Chairman of the Board
5 Today we emerge from our financial restructuring Restructuring process begins Closed sale of Northwest Operations for net cash proceeds of $1.1B Filed Chapter 11 Refinanced $5B of debt Emerge from Chapter 11 NASDAQ listing, trading under FYBR expected to begin on May 4 July April May 2019 2020 2021 Oct - Nov April Received final regulatory approvals Today
We have a strong foundation in place for the next stage Low leverageStrong cash from operationsSignificant liquidity Strong FinancialCondition Data-first focusBuilding initial 3.4 million new fiber passingsIntegrated network, purpose built to serve:ResidentialBusiness (SMB & Enterprise)Wholesale Fiber-basedStrategy Simplifying product offeringStreamlining processesSystem improvementsDigital tools for servicing accounts Improving Operations New Board of DirectorsNew CEOCertain key senior leadership positions Enhanced Talent
Opportunity has attracted new leadership talent Veronica BloodworthChief Network Officer23 years of leadership experience at AT&T, most recently as SVP of Construction and EngineeringExtensive experience with the planning, design, construction and capital maintenance of a nationwide wireline networkOversaw the deployment of fiber to over 14 million customersCreated a single fiber plan across the consumer, mobility and business segments Nick JefferyChief Executive OfficerFormer CEO of Vodafone UKLed turnaround of Vodafone’s home marketReturned company to revenue and double-digit EBITDA growth Grew market share and beat all competition for seven straight quartersHighest ever customer Net Promoter Score and employee engagement scoresLed digital and brand transformation30 years of telecom leadership experience
Our new board brings extensive experience across key disciplines Marketing & Sales Operations Talent Technology Telcom Industry Finance Legal & Regulatory Pamela CoeFormer Deputy General Counsel and Corporate Secretary of Liberty Media Corporation Lisa ChangChief People OfficerCoca-Cola Company Stephen PuseyFormer Global Chief Technology Officer of Vodafone Group PLC Nick Jeffery, CEOFormer CEO of Vodafone UK Pratabkumar “Prat” VemanaChief Digital OfficerKaiser Foundation Health Plans and Hospitals (Kaiser Permanente) Maryann TurckeFormer Chief Operating Officer of National Football League Kevin BeebeCo-FounderAstra Capital ManagementFormer Group President of Operations of ALLTEL Corp. John Stratton,ChairmanFormer EVP, President of Verizon Global Operations
Frontier is positioned to become the largest pure play fiber provider in the US Existing Fiber Infrastructure Asset Fiber Expansion Opportunity The Expansion Fiber Network The Base Fiber Network 3.0 million consumer passings3.2 million total passings1 Brownfield opportunity to expand fiber0.2 million total passings1 built to date Total passings includes both consumer and commercial locations
The current network as of 1Q 2021 Total Network Passings1 The Base Fiber Network3.2M passings, defined as locations built prior to 202097% GPON enabled (symmetrical gigabit capable) The Expansion Fiber Network0.2M passings as of 1Q 2021, defined as locations built in 2020 and afterTarget ~600k cumulative locations built by year end 2021 Total passings includes both consumer and commercial locations, excludes copper voice-only locations
2020 Revenue and Adjusted EBITDA Preliminary, granular cost allocation work in progress Note: Both Revenue and Adjusted EBITDA are for the Remaining Properties, excluding the Northwest OperationsAdjusted EBITDA is a non-GAAP Financial measure. See Appendix for a reconciliation to the closest GAAP measure 1
The Base Fiber Network today, before expansion Key Value Levers: Penetration GainsARPU AccretionCost Efficiency ~50%Penetrationtarget Note: Passings and customers include both consumer and commercial locations
The Base Fiber Network: valuation Fiber Copper EV per Passing % Penetration 41.5% Penetration Today: $11B implied EV Note: : Metrics calculated using publicly available data for Altice USA, Cable One, Charter, Cincinnati Bell Fioptics, Comcast (excluding NBCUniversal and Sky), Consolidated, Otelco, and WOW. Passings and penetration data as of Q4 2020. Enterprise value data as of Mar-2021. Frontier Fiber at 41.5% broadband penetration implies ~$3,500 EV per passing. Frontier Copper at 12.5% broadband penetration implies ~$300 EV per passing.
Valuation framework: current and future potential Base Fiber Network41.5% penetration3.2M passings at $3,500 EV per + = $15BCurrent EV, implied ExpansionConvert Copper to Fiber Penetration50% target $11BEVimplied Expansion Fiber Network0.2M passings built through 1Q21Initial Expansion target: 3.4M passings TBD + Copper Network12.5% penetration11.8M passings at $300 EV per $4BEVimplied $14BEVimplied ARPU GainsCost Efficiency Full size and scope of the expansion opportunity is currently under review Future EV Potential + =
24-30% Program IRR 14-20% Program IRR Fiber Copper Total Passings, M Already Being Built0.2M completed through 1Q21 (3.0 consumer) (6.1 consumer) (12.1 consumer) 0.2M copper locations already converted to fiber through 1Q21 The Expansion Fiber Network: converting copper to fiber at attractive IRRs Note: Passing are for broadband capable consumer and commercial locations, excluding copper voice only passings. IRRs are calculated based on a 10 year projection of operating cash flow (Adj. EBITDA – Capex) including a terminal value in the 11th year, assuming average terminal penetration of ~40%. IRR includes the negative cash flow impact from cannibalizing copper as it is converted into fiber.
Strategic review underway New management team and Board reviewing strategic options for speed and scope of Expansion Network build Enhanced investor reporting package (guidance parameters, key performance indicators) under development Fresh Start Accounting and granular ‘activity-based’ cost allocation ongoing Early August 2021Second Quarter Results Release & CallLater in AugustInvestor Day Upcoming events
Current state and opportunities ahead Nick JefferyChief Executive Officer
Frontier at a glance LTM Revenue as of Q1 ‘21 LTM Adj. EBITDA as of Q1 ‘21 Q1 ‘21 Adj. EBITDA Margin Fiber route miles Businesses within 250 feet of Frontier fiber Towers within 1 mile of Frontier fiber 40% ~180k 400k 22k $6.9B $2.8B Key operations and financial metrics Frontier footprint Note: All metrics shown are adjusted for the sale of Northwest Operations. Adjusted EBITDA and Adjusted EBITDA margins are non-GAAP measures. See Appendix slides for reconciliations to the closest GAAP measure.
Insatiable growth in demand for data + Demand for over-the-top video + Next-generation uses and applications Proliferation of connected devices = Explosive growth in data consumptionEstimated US Internet Protocol Traffic in Petabytes / month Source: 2019 Cisco Annual Internet Report, Deloitte, Kagan, Nielsen, US Telecom, Mordor Intelligence
Fiber is the best product to meet this demand Symmetrical download/upload speed, faster than cable and other emerging wireless technologies. 50 year replacement timeline. Faster download speed Faster upload speed Lower latency levels 34% 17.6x 42% Clear path to 10 Gig service, at lower capital intensity. 10 Gig Source: FCC Fiber is superior to cable today Fiber will maintain superiority in the future
Fiber to the home expected to be the most important digital infrastructure for US over next decade US fiber broadband market is primed for strong growth US opportunity larger than even most attractive international opportunities Source: Cartesian, FTTH Council, Euromonitor, Omdia
The market recognizes the opportunity and fiber overbuilder valuations reflect it Transaction EBITDA multiples~20x Announcement Date Acquirer / Investor Target Apr-2021 Oct-2020 Sep-2020 Jun-2020 Sep-2019 Jun-2019 Source: Company announcements, analyst reports
Frontier is already a fiber company with a highly attractive competitive landscape Broadband Passings Broadband Customers BroadbandRevenue 1 Copper FiberBase+Expansion Number of broadband competitors within Frontier’s consumer footprint (%) Fiber Copper 2+ competitors 1 competitor No competition Fiber: 88% with 1 or no competitors Copper: 87% with 1 or no competitors Note: Fiber includes both the Base and the Expansion networks. All metrics shown are TTM through 1Q21 and adjusted for the sale of Northwest OperationsBroadband revenue across consumer and commercial customers
24 Frontier has unique advantages in deploying fiber Overlash aerial copper lines ~$30 benefit per locationOwned long haul transport~$10 benefit per locationUtilize existing fiber; only replace existing distribution legacy copper~$30 benefit per locationExisting conduit capacity~$40 benefit per location Faster build pace and a ~20% cost advantage
Initial efforts bearing fruit… 7 consecutive quarters of positive consumer fiber net adds Building fiber to new locations at an accelerating pace Declining consumer fiber churn reflects improving customer experience Covid 000s
…with substantial opportunity to unlock further value Secular decline in voice and copper continuesSlow erosion through improved service deliveryRamp up copper to fiber conversionFiber subscriber base stabilizedDrive increased demand, accelerate penetration gainsContinue conversion to broadband centric propositionARPU improvement via product mixOpportunity to substantially improve cost baseKey investments in long term growthEnterprise and WholesaleConsumer gross add acceleration
Outlook for 2021 2020A 2021E Adjusted EBITDA $2.77B1 $2.40 - 2.50B Capital Expenditures $1.2B ~$1.5B 2021 Fiber Builds – Current Plan Locations 495,000 Cost per Location ~$550 Note: Projected GAAP financial measures and reconciliations of projected non-GAAP financial measures are not provided herein because such GAAP financial measures are not available on a forward-looking basis and such reconciliations could not be derived without unreasonable effort. Adjusted EBITDA is a non-GAAP Financial measure. See Appendix for a reconciliation to the closest GAAP measure.
Our priorities Accelerating fiber build Strong customer propositions Operational excellence Building Gigabit America More to be shared during our August Investor Day
Q1 2021 results and near-term outlook Sheldon BruhaChief Financial Officer
First quarter 2021 highlights Seventh consecutive quarter of positive consumer fiber net adds Consumer customer churn of 1.45%, outperforming recent quarters as operational improvements expand Financial results in-line with expectations Total revenue $1,676M $60M Net income $670M Adjusted EBITDA $1,475M Debt raised & refinanced in April Key highlights
Key financial trends – remaining properties Data and Internet Services revenue showing benefits from improving fiber broadband performanceAdj. Operating expenses declined $96M vs prior year, reflecting continued cost disciplines and reduced video content costs ($ in Millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Data & Internet Services $855 $849 $838 $834 $842 Voice Services $529 $509 $500 $490 $487 Video Services $212 $197 $186 $181 $169 Other $108 $105 $103 $101 $95 Total Customer Revenue $1,704 $1,660 $1,627 $1,606 $1,593 Consumer $894 $874 $859 $857 $844 Commercial $810 $786 $768 $749 $749 Total Customer Revenue $1,704 $1,660 $1,627 $1,606 $1,593 Subsidy & Other Revenue1 $84 $94 $99 $89 $83 Total Revenue $1,788 $1,754 $1,726 $1,695 $1,676 Adjusted Oper. Expenses2 $1,102 $1,051 $1,036 $1,002 $1,006 Adjusted EBITDA2 $686 $703 $690 $693 $670 Adjusted EBITDA Margin 38.4% 40.1% 40.0% 40.9% 40.0% Includes $10M, $15M, and $5M of revenue from transition services performed for purchaser of Northwest Operations in Q2 20 through Q4 20. More detail can be found in our 2020 10-K.Adjusted Operating Expenses and Adjusted EBITDA are non-GAAP measures. See Financial Appendix for a reconciliation of Net Income (Loss) to Adjusted EBITDA and a reconciliation of Operating Expenses to Adjusted Operating Expenses.
Capital spending update CapEx Spend$384M in Q1 2021 ~100k fiber locations built in Q1 – well in excess of all builds completed in 2020 Ramping activities to deliver 495k new fiber locations in 2021 Accelerating our build capabilities
No funded debt maturities until 2027, providing clear runway during implementation of our fiber builds. Capital structure update Maturity schedule at emergence1 $625M RCF 6.750% 2L notes 1L term loan 5.875% 2L takeback debt 5.000% 1L notes Subsidiary debt 5.875% 1L notes Other $625 $2,825 $2,056 $1,800 Repriced term loan in April, attaining 125bp interest rate improvement Includes $750M 2L takeback debt and $225M newly issued 1L term loan, both of which are issued and closed at emergence.
34 Financial flexibility to execute our strategy Significant liquidity including:$625M revolving credit facility $535M available, reduced by Letters of Credit~$800M post-emergence cash balance, including $225M from new term loan~2.2x net leverage at emergence, lowest among peer group ~$1.3B liquidity at emergence
Conclusions John StrattonExecutive Chairman of the Board
36 Strong assets + attractive opportunity set + financial flexibility… Critical telecommunications infrastructure with fiber-rich assetsStrong industry fundamentals and tailwinds Opportunities to invest in fiber and growthCommitment to improve customer experienceRestructured balance sheet provides flexibility … create the path forward
Questions?
Investor supplement
Key value drivers 3.2M passings, 41.5% penetrated The Base Fiber Network is an established infrastructure asset, generating free cash flow todayComparable to cable, both on operational and valuation metricsPositive momentum in penetration, churn and ARPUUpside potential:Drive penetration towards 50%Further improve ARPU and churnDeploy best practices to lower costs and strengthen margin The Expansion Fiber Network Already executing on the initial expansion opportunitiesInitial 3.4M passings to be built at 24-30% program IRR~200k locations built from Jan 2020 through 1Q 2021~500k total locations to be built in 2021Up to 6.7M incremental passings currently being evaluatedThe existing network footprint creates a substantial competitive advantage relative to competitors:12M copper passings to potentially convert to fiberScale and existing infrastructure lowers build cost by ~20% when compared to other overbuildersAbility to build more quickly, reaching target project passings in less time The Base Fiber Network
Upside to current valuation Copper Base Fiber The Base Fiber Network has upside from further penetration gains, driving near-term growth and value creation Additional upside potential from ARPU gains and cost efficiencies
Operating metrics (Millions) Q1 2020 Q22020 Q32020 Q4 2020 Q1 2021 Total Fiber Passings 3.2 3.2 3.2 3.3 3.4 Base Fiber Network Consumer Base Fiber Passings 3.0 3.0 3.0 3.0 3.0 Total Base Fiber Passings 3.2 3.2 3.2 3.2 3.2 Base % Fiber Penetration 40.9% 41.1% 41.2% 41.4% 41.5% Note: Estimate passings. Total includes both consumer and commercial locations
Operating metrics, continued Customer data in thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Consumer KPIs Customer accounts 3,373 3,341 3,305 3,264 3,234 Net adds (39) (32) (36) (42) (30) BB net adds (13) (10) (14) (22) (11) Churn 1.84% 1.63% 1.81% 1.67% 1.45% ARPC $ 87.9 $ 86.7 $ 86.2 $ 87.0 $ 86.6 Fiber Broadband (BB) KPIs Consumer Customers 1,200 1,207 1,214 1,223 1,234 Business Customers 118 116 117 117 120 Consumer: BB Net adds 10 7 7 9 11 BB Churn 1.97% 1.54% 1.81% 1.56% 1.40% BB ARPU $ 52.5 $ 52.4 $ 52.8 $ 54.5 $ 56.0 Copper Broadband (BB) KPIs Consumer Customers 1,418 1,401 1,380 1,348 1,326 Business Customers 171 166 160 154 149 Consumer: BB Net adds (23) (17) (21) (31) (22) BB Churn 2.36% 2.03% 2.11% 1.96% 1.63% BB ARPU $ 38.7 $ 39.1 $ 39.1 $ 39.3 $ 40.1
Financial Appendix
2021 guidance 2020A 2021E Adjusted EBITDA $2.77B1 $2.40 - 2.50B Cash taxes $8M ~$50M Cash interest expense $612M ~$365M Cash pension and OPEB, net of capitalization $116M ~$120M Capital expenditures $1.2B ~$1.5B 2021 Fiber Expansion Builds - 495,000 Cost per Location - ~$550 Note: Excludes impacts from Fresh Start Accounting. Cash Pension impacted by deferrals from contemplated 2020 plan year pension funding waiver from PBGC/IRS. 2021 includes pension funding relief provided from the American Rescue Plan Act of 2021 (ARPA). Projected GAAP financial measures and reconciliations of projected non-GAAP financial measures are not provided herein because such GAAP financial measures are not available on a forward-looking basis and such reconciliations could not be derived without unreasonable effort.Adjusted EBITDA is a non-GAAP Financial measure. See Appendix for a reconciliation to the closest GAAP measure.
Non-GAAP Financial Measures - Consolidated ($ in Millions) Q1 2020 Q22020 Q32020 Q4 2020 Q1 2021 Net Income (Loss) (186) (181) 15 (50) 60 Add back (Subtract): Income Tax Expense (Benefit) (23) (57) (11) 7 87 Interest Expense 383 160 121 98 89 Investment and Other (Income) Loss, Net (5) 20 14 14 (2) Pension Settlement Costs 103 56 - - - Loss on Extinguishment of Debt - - - 72 - Reorganization Items, Net - 142 131 136 25 Operating Income (Loss) 272 140 270 277 259 Depreciation and Amortization 415 397 392 394 387 EBITDA $687 $537 $662 $671 $646 Add back: Pension/OPEB Expense 23 23 24 20 23 Restructuring Costs and Other Charges 48 36 3 - 2 Stock-based Compensation Expense 1 1 1 - (1) Storm Related Insurance Proceeds - (1) - - - Loss on disposal of Northwest Operations 24 136 - 2 - Adjusted EBITDA $783 $732 $690 $693 $670 EBITDA Margin 35.6% 29.8% 38.4% 39.6% 38.5% Adjusted EBITDA Margin 40.5% 40.6% 40.0% 40.9% 40.0%
Non-GAAP Financial Measures – Remaining Properties ($ in Millions) Q1 2020 Q22020 Q32020 Q4 2020 Q12021 Net Income (Loss) (283) (210) 15 (50) 60 Add back (Subtract): Income Tax Expense (Benefit) (23) (57) (11) 7 87 Interest Expense 383 160 121 98 89 Investment and Other (Income) Loss, Net (5) 20 14 14 (2) Pension Settlement Costs 103 56 - - - Loss on Extinguishment of Debt - - - 72 - Reorganization Items, Net - 142 131 136 25 Operating Income (Loss) 175 111 270 277 259 Depreciation and Amortization 415 397 392 394 387 EBITDA $590 $508 $662 $671 $646 Add back: Pension/OPEB Expense 23 23 24 20 23 Restructuring Costs and Other Charges 48 36 3 - 2 Stock-based Compensation Expense 1 1 1 - (1) Storm Related Insurance Proceeds - (1) - - - Loss on disposal of Northwest Operations 24 136 - 2 - Adjusted EBITDA $686 $703 $690 $693 $670 EBITDA Margin 33.0% 29.0% 38.4% 39.6% 38.5% Adjusted EBITDA Margin 38.4% 40.1% 40.0% 40.9% 40.0%
Non-GAAP Financial Metrics - Consolidated ($ in Millions) Q1 2020 Q2 2020 Q3 2020 Q42020 Q1 2021 Total Operating Expenses $1,661 $1,661 $1,456 $1,418 $1,417 Subtract: Depreciation and Amortization 415 397 392 394 387 Loss on disposal of Northwest Operations 24 136 - 2 - Pension/OPEB Expense 23 23 24 20 23 Restructuring Costs and Other Charges 48 36 3 - 2 Stock-based Compensation Expense 1 1 1 - (1) Storm Related Insurance Proceeds - (1) - - - Adjusted Operating Expenses $1,150 $1,069 $1,036 $1,002 $1,006
Non-GAAP Financial Metrics – Remaining Properties ($ in Millions) Q1 2020 Q2 2020 Q3 2020 Q42020 Q1 2021 Total Operating Expenses $1,613 $1,643 $1,456 $1,418 $1,417 Subtract: Depreciation and Amortization 415 397 392 394 387 Loss on disposal of Northwest Operations 24 136 - 2 - Pension/OPEB Expense 23 23 24 20 23 Restructuring Costs and Other Charges 48 36 3 - 2 Stock-based Compensation Expense 1 1 1 - (1) Storm Related Insurance Proceeds - (1) - - - Adjusted Operating Expenses $1,102 $1,051 $1,036 $1,002 $1,006
Free Cash Flow Quarterly Results ($ in Millions) Q12020 Q22020 Q32020 Q42020 Q12021 Net Cash from Operating Activities $477 $473 $542 $497 $665 Capital Expenditures (286) (225) (314) (356) (384) Operating Free Cash Flow $191 $248 $228 $141 $281 Trailing Four Quarters ($ in Millions) Q1 2020 Q2 2020 Q3 2020 Q42020 Q12021 Net Cash from Operating Activities $1,703 $1,601 $1,897 $1,989 $2,177 Capital Expenditures (1,207) (1,157) (1,153) (1,181) (1,279) Operating Free Cash Flow $496 $444 $744 $808 $898