EXHIBIT 99.1

Adjusted EBITDA and Covenant Adjusted EBITDA (Pre-SAC) are non-GAAP measures that we believe are useful to investors to measure the operational strength and performance of our business and to provide additional information to investors about certain non-cash items and about unusual items that we do not expect to continue at the same level in the future, as well as other items that are not core to our operations. Further, we believe Adjusted EBITDA and Covenant Adjusted EBITDA (Pre-SAC) provide a meaningful measure of operating profitability because we use it for evaluating our business performance, making budgeting decisions, and comparing our performance against that of other peer companies using similar measures.
We define Adjusted EBITDA as net income or loss adjusted for (i) interest, (ii) taxes, (iii) depreciation and amortization, including depreciation of subscriber system assets and other fixed assets and amortization of dealer and other intangible assets, (iv) amortization of deferred costs and deferred revenue associated with subscriber acquisitions, (vi) merger, restructuring, integration, and other, (vii) losses on extinguishment of debt, (viii) radio conversion costs, (ix) financing and consent fees, (x) foreign currency gains/losses, (xi) acquisition related adjustments, and (xii) other charges and non-cash items. We define Covenant Adjusted EBITDA (Pre-SAC) as Adjusted EBITDA adjusted for costs in our statement of operations associated with the acquisition of customers, net of revenue associated with the sale of equipment (expensed net SAC).
There are material limitations to using Adjusted EBITDA and Covenant Adjusted EBITDA (Pre-SAC). Adjusted EBITDA and Covenant Adjusted EBITDA do not take into account certain significant items, including depreciation and amortization, interest, taxes, and other adjustments, including subscriber acquisition costs, which directly affect our net income or loss. These limitations are best addressed by considering the economic effects of the excluded items independently and by considering Adjusted EBITDA and Covenant Adjusted EBITDA (Pre-SAC) in conjunction with net income or loss as calculated in accordance with GAAP.
The table below reconciles net (loss) income to Adjusted EBITDA and Covenant Adjusted EBITDA (Pre-SAC) for the periods presented.
         
Six Months Ended
June 30,
    
Years Ended December 31,
  
(in thousands)
  
Twelve Months Ended
June 30, 2020
    
2020
    
2019
    
2019
    
2018
    
2017
  
Net (loss) income          
  
$
(660,657
)
  
$
(407,034
)
  
$
(170,527
)
  
$
(424,150
)
  
$
(609,155
)
  
$
342,627
  
Interest expense, net          
    
718,659
      
412,632
      
313,546
      
619,573
      
663,204
      
732,841
  
Income tax benefit          
    
(158,628
)
    
(105,795
)
    
(45,209
)
    
(98,042
)
    
(23,463
)
    
(764,313
)
Depreciation and intangible asset amortization          
    
1,959,233
      
966,893
      
996,742
      
1,989,082
      
1,930,929
      
1,863,299
  
Amortization of deferred subscriber acquisition costs          
    
87,784
      
45,416
      
37,760
      
80,128
      
59,928
      
51,491
  
Amortization of deferred subscriber acquisition revenue          
    
(115,829
)
    
(59,017
)
    
(50,472
)
    
(107,284
)
    
(79,136
)
    
(46,454
)
Share based compensation expense          
    
87,703
      
48,327
      
46,250
      
85,626
      
135,012
      
11,276
  
Merger, restructuring, integration and other          
    
143,445
      
120,832
      
13,269
      
35,882
      
(3,344
)
    
64,828
  
Goodwill impairment          
    
45,482
      
—
      
—
      
45,482
      
87,962
      
—
  
Loss on sale of business          
    
62,708
      
757
      
—
      
61,951
      
—
      
—
  
Loss on extinguishment of debt          
    
81,446
      
65,843
      
88,472
      
104,075
      
274,836
      
4,331
  
Radio conversion costs, net(a)          
    
35,734
      
11,670
      
919
      
24,983
      
5,099
      
12,244
  
Financing and consent fees(b)          
    
27,123
      
5,260
      
1,387
      
23,250
      
8,857
      
63,593
  
Foreign currency (gains)/losses(c)          
    
(512
)
    
—
      
(738
)
    
(1,250
)
    
3,228
      
(23,804
)
Acquisition related adjustments(d)          
    
11,030
      
1,444
      
12,699
      
22,285
      
16,178
      
2,588
  
Licensing Fees(e)          
    
—
      
—
      
—
      
—
      
(21,533
)
    
—
  
Other(f)          
    
9,514
      
(4,629
)
    
7,476
      
21,619
      
4,895
      
38,256
  
Adjusted EBITDA          
  
$
2,334,235
    
$
1,102,599
    
$
1,251,574
    
$
2,483,210
    
$
2,453,497
    
$
2,352,803
  
Expensed Net SAC(g)     
   
305,391
      
167,449
      
145,166
      
283,108
      
295,717
      
334,764
  
Covenant Adjusted EBITDA (Pre-SAC)          
  
$
2,639,626
    
$
1,270,048
    
$
1,396,740
    
$
2,766,318
    
$
2,749,214
    
$
2,687,567
  


(a)
Represents costs, net of any incremental revenue earned, associated with replacing cellular technology used in many of our security systems pursuant to a replacement program.

(b)
Represents fees expensed associated with financing transaction.

(c)
Relates to the conversion of intercompany loans that are denominated in Canadian dollars to U.S. dollars.

(d)
Represents amortization of purchase accounting adjustments and compensation arrangements related to acquisitions.

(e)
Represents other income related to $22 million of one-time licensing fees.

(f)
Represents other charges and non-cash items as well as certain advisory and other costs associated with our transition to a public company. During 2019, includes a $10 million write-off of notes receivable from a strategic investment. During 2018, includes a gain of $7.5 million from the sale of equity in a third-party that we received as part of a settlement. During 2017, includes fees of $20 million related to a management consulting agreement, which was terminated in connection with the consummation of the initial public offering.
 
(g)
Represents expensed costs associated with the acquisition of new customers, net of revenue associated with the sale of equipment.