CHICAGO, Nov. 1, 2024
/PRNewswire/ --
As previously announced, TDS will hold a teleconference
on November 1, 2024, at 9:00 a.m. CDT. Listen to the call
live via the Events & Presentations page
of investors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE: TDS) reported total
operating revenues of $1,224 million
for the third quarter of 2024, versus $1,278
million for the same period one year ago. Net income (loss)
attributable to TDS common shareholders and related diluted
earnings (loss) per share were $(83)
million and $(0.73),
respectively, for the third quarter of 2024 compared to
$(17) million and $(0.16), respectively, in the same period one
year ago.
Net income attributable to TDS common shareholders excluding a
UScellular wireless spectrum license impairment (non-GAAP) of
$136 million ($102 million, net of tax) and related diluted
earnings per share excluding a UScellular wireless spectrum license
impairment (non-GAAP) were $2 million
and $0.01, respectively, for the
third quarter of 2024. The impairment loss was substantially all
related to the retained high-band spectrum unit of accounting which
includes the 28 GHz, 37 GHz and 39 GHz frequency bands.
Recent Highlights*
UScellular
- Announced sale of select spectrum assets for $1 billion to Verizon in October 2024, and the sale of additional spectrum
to two other mobile network operators
- Improved wireless operating results
- Postpaid handset net losses improved
- Postpaid ARPU grew 2%; service revenues decreased 2%
- Prepaid net additions up
- Both postpaid and prepaid churn improved
- Fixed wireless customers grew 32% to 140,000
TDS Telecom
- Reached a milestone of 50% of service addresses now served
with fiber
- Grew total year-over-year service address footprint 9%
- Delivered 32,000 marketable fiber services addresses in Q3;
87,000 YTD
- Operating revenues grew 2%; residential revenue growth of
5%
- Residential broadband connections grew 4% due to broadband
investments
- Strong net income and Adjusted EBITDA growth
* Comparisons are 3Q'23 to 3Q'24 unless otherwise noted
"We continue to strategically optimize our portfolio in order to
focus our resources appropriately throughout the enterprise," said
LeRoy T. Carlson, Jr., TDS President
and CEO. "In the third quarter, TDS completed the sale of its
OneNeck operations. In addition, TDS Telecom has entered into
agreements to sell certain ILEC and cable properties. In October,
as part of its ongoing process to opportunistically monetize its
remaining spectrum, UScellular announced that it had entered into
agreements to monetize select spectrum assets for $1 billion.
"UScellular's third quarter results show that the company is
continuing to balance subscriber growth with financial discipline.
And while it had postpaid handset net losses in the quarter, the
company saw a notable year-over-year improvement in its subscriber
trajectory.
"TDS Telecom is implementing its ongoing fiber expansion
strategy and it reached a milestone of 50% of its service addresses
passed with fiber."
Announced Transactions and Exploration of Strategic
Alternatives for UScellular
On May
28, 2024, Telephone and Data Systems, Inc. (TDS) and
UScellular announced that they have entered into a definitive
agreement to sell UScellular's wireless operations and select
spectrum assets to T-Mobile. The transaction is expected to close
in mid-2025, subject to regulatory approvals and the satisfaction
of customary closing conditions.
The T-Mobile transaction excluded UScellular's approximately
4,400 owned towers, its equity method investments, and
approximately 70% of its spectrum assets.
In October, UScellular announced a sale of select spectrum
assets to Verizon for a portion of the remaining spectrum for
$1 billion, and the sale of
additional spectrum to two other mobile network operators for an
undisclosed price. Each transaction is subject to regulatory
approvals and the satisfaction of customary closing conditions and
contingent upon the close of the proposed T-Mobile transaction. The
process to opportunistically monetize the remaining spectrum assets
continues.
2024 Estimated Results
TDS' current estimates
of full-year 2024 results for UScellular and TDS Telecom are shown
below. Such estimates represent management's view as of
November 1, 2024 and should not be assumed to be current as of
any future date. TDS undertakes no duty to update such estimates,
whether as a result of new information, future events, or
otherwise. There can be no assurance that final results will not
differ materially from estimated results.
|
2024 Estimated
Results
|
|
|
|
UScellular
|
Previous
|
Current
|
|
(Dollars in
millions)
|
|
|
|
Service
revenues
|
$2,950-$3,050
|
$2,950-$3,000
|
|
Adjusted OIBDA1,
2 (Non-GAAP)
|
$750-$850
|
$800-$875
|
|
Adjusted EBITDA1,
2 (Non-GAAP)
|
$920-$1,020
|
$970-$1,045
|
|
Capital
expenditures
|
$550-$650
|
$550-$600
|
|
TDS
Telecom
|
Previous
|
Current
|
|
(Dollars in
millions)
|
|
|
|
Total operating
revenues
|
$1,050-$1,080
|
Unchanged
|
|
Adjusted
OIBDA1 (Non-GAAP)
|
$330-$360
|
Unchanged
|
|
Adjusted
EBITDA1 (Non-GAAP)
|
$330-$360
|
Unchanged
|
|
Capital
expenditures
|
$310-$340
|
Unchanged
|
The following tables reconcile EBITDA, Adjusted EBITDA and
Adjusted OIBDA to the corresponding GAAP measures, Net income
(loss) or Income (loss) before income taxes. In providing 2024
estimated results, TDS has not completed the below reconciliation
to Net income (loss) because it does not provide guidance for
income taxes. Although potentially significant, TDS believes that
the impact of income taxes cannot be reasonably predicted;
therefore, TDS is unable to provide such guidance.
|
2024 Estimated
Results2
|
|
UScellular
|
|
TDS
Telecom
|
|
(Dollars in
millions)
|
|
|
|
|
Net income
(GAAP)
|
N/A
|
|
N/A
|
|
Add back:
|
|
|
|
|
Income tax
expense
|
N/A
|
|
N/A
|
|
Income (loss) before
income taxes (GAAP)
|
$(35)-$40
|
|
$60-$90
|
|
Add back:
|
|
|
|
|
Interest
expense
|
180
|
|
—
|
|
Depreciation,
amortization and accretion expense
|
665
|
|
270
|
|
EBITDA
(Non-GAAP)1
|
$810-$885
|
|
$330-$360
|
|
Add back or
deduct:
|
|
|
|
|
(Gain) loss on asset
disposals, net
|
20
|
|
—
|
|
Adjusted EBITDA
(Non-GAAP)1
|
$970-$1,045
|
|
$330-$360
|
|
Deduct:
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
160
|
|
—
|
|
Interest and dividend
income
|
10
|
|
—
|
|
Adjusted OIBDA
(Non-GAAP)1
|
$800-$875
|
|
$330-$360
|
|
Actual
Results
|
|
Nine Months
Ended
September 30,
2024
|
|
Year
Ended
December 31,
2023
|
|
UScellular
|
|
TDS
Telecom
|
|
UScellular
|
|
TDS
Telecom
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
$
(37)
|
|
$
51
|
|
$
58
|
|
$
(483)
|
|
Add back:
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
29
|
|
15
|
|
53
|
|
(26)
|
|
Income (loss) before
income taxes (GAAP)
|
$
(8)
|
|
$
66
|
|
$
111
|
|
$
(509)
|
|
Add back:
|
|
|
|
|
|
|
|
|
Interest
expense
|
137
|
|
(4)
|
|
196
|
|
(8)
|
|
Depreciation,
amortization and accretion expense
|
499
|
|
199
|
|
656
|
|
245
|
|
EBITDA
(Non-GAAP)1
|
$
628
|
|
$
261
|
|
$
963
|
|
$
(272)
|
|
Add back or
deduct:
|
|
|
|
|
|
|
|
|
Expenses related to
strategic alternatives review
|
28
|
|
—
|
|
8
|
|
—
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
—
|
|
—
|
|
Loss on impairment of
goodwill
|
—
|
|
—
|
|
—
|
|
547
|
|
(Gain) loss on asset
disposals, net
|
14
|
|
8
|
|
17
|
|
10
|
|
(Gain) loss on license
sales and exchanges, net
|
4
|
|
—
|
|
(2)
|
|
—
|
|
Adjusted EBITDA
(Non-GAAP)1
|
$
810
|
|
$
269
|
|
$
986
|
|
$
285
|
|
Deduct:
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
123
|
|
—
|
|
158
|
|
—
|
|
Interest and dividend
income
|
9
|
|
4
|
|
10
|
|
4
|
|
Other, net
|
—
|
|
3
|
|
—
|
|
2
|
|
Adjusted OIBDA
(Non-GAAP)1
|
$
678
|
|
$
263
|
|
$
818
|
|
$
279
|
|
|
Numbers may not foot
due to rounding.
|
|
1
|
EBITDA, Adjusted EBITDA
and Adjusted OIBDA are defined as net income adjusted for the items
set forth in the reconciliation above. EBITDA, Adjusted EBITDA
and Adjusted OIBDA are not measures of financial performance under
Generally Accepted Accounting Principles in the United States
(GAAP) and should not be considered as alternatives to Net income
or Cash flows from operating activities, as indicators of cash
flows or as measures of liquidity. TDS does not intend to imply
that any such items set forth in the reconciliation above are
infrequent or unusual; such items may occur in the
future. Management uses Adjusted EBITDA and Adjusted OIBDA as
measurements of profitability, and therefore reconciliations to Net
income are deemed appropriate. Management believes Adjusted EBITDA
and Adjusted OIBDA are useful measures of TDS' operating results
before significant recurring non-cash charges, nonrecurring
expenses, gains and losses, and other items as presented above as
they provide additional relevant and useful information to
investors and other users of TDS' financial data in evaluating the
effectiveness of its operations and underlying business trends in a
manner that is consistent with management's evaluation of business
performance. Adjusted EBITDA shows adjusted earnings before
interest, taxes, depreciation, amortization and accretion, gains
and losses, and expenses related to the strategic alternatives
review of UScellular while Adjusted OIBDA reduces this measure
further to exclude Equity in earnings of unconsolidated entities
and Interest and dividend income in order to more effectively show
the performance of operating activities excluding investment
activities. The table above reconciles EBITDA, Adjusted EBITDA and
Adjusted OIBDA to the corresponding GAAP measure, Net income or
Income before income taxes. Additional information and
reconciliations related to Non-GAAP financial measures for
September 30, 2024, can be found on TDS' website at
investors.tdsinc.com.
|
|
2
|
2024 Estimated Results
do not reflect any anticipated costs, expenses or results of the
strategic alternatives review referenced above.
|
Conference Call Information
TDS will hold a conference
call on November 1, 2024 at 9:00 a.m.
Central Time.
- Access the live call on the Events & Presentations page
of investors.tdsinc.com or at
https://events.q4inc.com/attendee/666898854
- Access the call by phone at (888)330-2384, conference ID:
1328528.
Before the call, certain financial and statistical information
to be discussed during the call will be posted to
investors.tdsinc.com. The call will be archived on the Events &
Presentations page of investors.tdsinc.com.
About TDS
Telephone and Data Systems, Inc. (TDS)
provides wireless, broadband, video and voice to approximately
6 million connections nationwide through its businesses, UScellular
and TDS Telecom. Founded in 1969 and headquartered in Chicago, TDS employed approximately 8,000
associates as of September 30,
2024.
Visit investors.tdsinc.com for comprehensive financial
information, including earnings releases, quarterly and annual
filings, shareholder information and more.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995: All information set
forth in this news release, except historical and factual
information, represents forward-looking statements. This includes
all statements about the company's plans, beliefs, estimates, and
expectations. These statements are based on current estimates,
projections, and assumptions, which involve certain risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Important factors
that may affect these forward-looking statements include, but are
not limited to: whether the announced transactions whereby
UScellular has agreed to sell its wireless operations and selected
spectrum assets will be successfully completed or whether
UScellular will be able to find buyers at mutually agreeable prices
for its remaining spectrum assets; whether any such strategic
alternative will result in additional value for TDS or its
shareholders and whether the process will have an adverse impact on
TDS' businesses; strategic decisions regarding the tower business;
intense competition; the ability to obtain or maintain roaming
arrangements with other carriers on acceptable terms and changes in
roaming practices; the ability to obtain access to adequate radio
spectrum to meet current or anticipated future needs, including
participation in FCC auctions; the ability to attract people of
outstanding talent throughout all levels of the organization; TDS'
smaller scale relative to larger competitors; changes in demand,
consumer preferences and perceptions, price competition, or churn
rates; advances in technology; impacts of costs, integration
problems or other factors associated with acquisitions,
divestitures or exchanges of properties or wireless spectrum
licenses and/or expansion of TDS' businesses; the ability of the
company to successfully construct and manage its networks;
difficulties involving third parties with which TDS does business;
uncertainties in TDS' future cash flows and liquidity and access to
the capital markets; the ability to make payments on TDS and
UScellular indebtedness or comply with the terms of debt covenants;
the effect on TDS' business if the collateral securing its secured
term loan is foreclosed upon; conditions in the U.S.
telecommunications industry; the value of assets and investments;
the state and federal regulatory environment, including changes in
regulatory support received and the ability to pass through certain
regulatory fees to customers; pending and future litigation;
cyber-attacks or other breaches of network or information
technology security; control by the TDS Voting Trust; disruption in
credit or other financial markets; deterioration of U.S. or global
economic conditions; and the impact, duration and severity of
public health emergencies. Investors are encouraged to consider
these and other risks and uncertainties that are more fully
described under "Risk Factors" in the most recent filing of TDS'
Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such
Form 10-K.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
|
UnitedStates
Cellular Corporation
|
|
Summary Operating
Data (Unaudited)
|
|
As of or for the
Quarter Ended
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Retail
Connections
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
|
|
|
|
|
|
|
Total at end of
period1
|
3,999,000
|
|
4,027,000
|
|
4,051,000
|
|
4,106,000
|
|
4,159,000
|
|
Gross
additions
|
123,000
|
|
117,000
|
|
106,000
|
|
129,000
|
|
128,000
|
|
Handsets
|
84,000
|
|
73,000
|
|
63,000
|
|
80,000
|
|
84,000
|
|
Connected
devices
|
39,000
|
|
44,000
|
|
43,000
|
|
49,000
|
|
44,000
|
|
Net additions
(losses)1
|
(28,000)
|
|
(24,000)
|
|
(44,000)
|
|
(50,000)
|
|
(35,000)
|
|
Handsets
|
(28,000)
|
|
(29,000)
|
|
(47,000)
|
|
(53,000)
|
|
(38,000)
|
|
Connected
devices
|
—
|
|
5,000
|
|
3,000
|
|
3,000
|
|
3,000
|
|
ARPU2
|
$
52.04
|
|
$
51.45
|
|
$
51.96
|
|
$
51.61
|
|
$
51.11
|
|
ARPA3
|
$
131.81
|
|
$ 130.41
|
|
$ 132.00
|
|
$ 131.63
|
|
$ 130.91
|
|
Handset upgrade
rate4
|
3.5 %
|
|
4.1 %
|
|
4.5 %
|
|
5.8 %
|
|
4.5 %
|
|
Churn
rate5
|
1.25 %
|
|
1.16 %
|
|
1.22 %
|
|
1.44 %
|
|
1.30 %
|
|
Handsets
|
1.07 %
|
|
0.97 %
|
|
1.03 %
|
|
1.22 %
|
|
1.11 %
|
|
Connected
devices
|
2.47 %
|
|
2.47 %
|
|
2.52 %
|
|
3.03 %
|
|
2.64 %
|
|
Prepaid
|
|
|
|
|
|
|
|
|
|
|
Total at end of
period1
|
452,000
|
|
439,000
|
|
436,000
|
|
451,000
|
|
462,000
|
|
Gross
additions
|
57,000
|
|
50,000
|
|
41,000
|
|
43,000
|
|
52,000
|
|
Net additions
(losses)1
|
13,000
|
|
3,000
|
|
(13,000)
|
|
(11,000)
|
|
—
|
|
ARPU2,
6
|
$
32.01
|
|
$
32.37
|
|
$
32.25
|
|
$
32.32
|
|
$
33.44
|
|
Churn
rate5
|
3.30 %
|
|
3.60 %
|
|
4.06 %
|
|
3.87 %
|
|
3.68 %
|
|
Market penetration
at end of period
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating
population
|
32,550,000
|
|
32,550,000
|
|
32,550,000
|
|
32,350,000
|
|
32,350,000
|
|
Consolidated operating
penetration7
|
15 %
|
|
15 %
|
|
14 %
|
|
15 %
|
|
15 %
|
|
Capital expenditures
(millions)
|
$
120
|
|
$
165
|
|
$
131
|
|
$
148
|
|
$
111
|
|
Total cell sites in
service
|
7,007
|
|
6,990
|
|
6,995
|
|
7,000
|
|
6,973
|
|
Owned
towers
|
4,407
|
|
4,388
|
|
4,382
|
|
4,373
|
|
4,356
|
|
Number of
colocations8
|
2,418
|
|
2,392
|
|
2,397
|
|
2,390
|
|
2,406
|
|
Tower tenancy
rate9
|
1.55
|
|
1.55
|
|
1.55
|
|
1.55
|
|
1.55
|
|
|
|
1
|
First quarter 2024
connections were adjusted to remove subscribers that could no
longer access the UScellular network due to the CDMA shutdown. This
resulted in 11,000 and 2,000 subscribers removed from the postpaid
and prepaid base, respectively, that are not included in Net
additions (losses) for the quarter.
|
|
2
|
Average Revenue Per
User (ARPU) - metric is calculated by dividing a revenue base by an
average number of connections and by the number of months in the
period. These revenue bases and connection populations are
shown below:
|
|
• Postpaid ARPU
consists of total postpaid service revenues and postpaid
connections.
|
|
• Prepaid ARPU
consists of total prepaid service revenues and prepaid
connections.
|
|
3
|
Average Revenue Per
Account (ARPA) - metric is calculated by dividing total postpaid
service revenues by the average number of postpaid accounts and by
the number of months in the period.
|
|
4
|
Handset upgrade rate
calculated as total handset upgrade transactions divided by average
postpaid handset connections.
|
|
5
|
Churn rate represents
the percentage of the connections that disconnect service each
month. These rates represent the average monthly churn rate
for each respective period.
|
|
6
|
Fourth quarter 2023
Prepaid ARPU excludes a $6 million reduction of prepaid revenue
related to an adjustment to correct a prior period error recorded
in the fourth quarter of 2023.
|
|
7
|
Market penetration is
calculated by dividing the number of wireless connections at the
end of the period by the total estimated population of consolidated
operating markets.
|
|
8
|
Represents instances
where a third-party wireless carrier rents or leases space on a
company-owned tower.
|
|
9
|
Average number of
tenants that lease space on company-owned towers, measured on a
per-tower basis.
|
|
TDS
Telecom
|
|
Summary Operating
Data (Unaudited)
|
|
As of or for the
Quarter Ended
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
9/30/2023
|
|
Residential
connections
|
|
|
|
|
|
|
|
|
|
|
Broadband
|
|
|
|
|
|
|
|
|
|
|
Incumbent
|
241,500
|
|
243,700
|
|
245,100
|
|
244,800
|
|
248,800
|
|
Expansion
|
115,300
|
|
107,800
|
|
100,400
|
|
92,200
|
|
79,400
|
|
Cable
|
195,900
|
|
198,500
|
|
202,400
|
|
202,900
|
|
204,400
|
|
Total
Broadband1
|
552,700
|
|
550,000
|
|
547,900
|
|
539,800
|
|
532,600
|
|
Video
|
122,100
|
|
124,800
|
|
128,800
|
|
131,500
|
|
132,400
|
|
Voice
|
271,300
|
|
275,600
|
|
279,400
|
|
281,600
|
|
284,000
|
|
Total Residential
connections
|
946,100
|
|
950,400
|
|
956,100
|
|
952,900
|
|
949,000
|
|
Commercial
connections
|
197,200
|
|
201,500
|
|
206,200
|
|
210,200
|
|
217,400
|
|
Total
connections
|
1,143,300
|
|
1,152,000
|
|
1,162,200
|
|
1,163,100
|
|
1,166,400
|
|
|
|
|
|
|
|
|
|
|
|
Residential revenue
per connection2
|
$
65.41
|
|
$
65.26
|
|
$
64.58
|
|
$
62.74
|
|
$
62.15
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
(millions)
|
$
78
|
|
$
78
|
|
$
87
|
|
$
143
|
|
$
172
|
|
|
Numbers may not foot
due to rounding.
|
|
1
|
Total residential
broadband connections increased by 8,100 during the three months
ended March 31, 2024, due primarily to net additions of 6,400 as
well as certain other adjustments.
|
|
2
|
Total residential
revenue per connection is calculated by dividing total residential
revenue by the average number of residential connections and by the
number of months in the period.
|
|
Telephone and Data
Systems, Inc
|
|
Consolidated
Statement of Operations Highlights
|
|
(Unaudited)
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars and shares in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
UScellular
|
$ 922
|
|
$
963
|
|
(4) %
|
|
$
2,799
|
|
$ 2,906
|
|
(4) %
|
|
TDS Telecom
|
263
|
|
256
|
|
2 %
|
|
797
|
|
767
|
|
4 %
|
|
All
Other1
|
39
|
|
59
|
|
(33) %
|
|
128
|
|
175
|
|
(27) %
|
|
1,224
|
|
1,278
|
|
(4) %
|
|
3,724
|
|
3,848
|
|
(3) %
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
UScellular
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding
depreciation, amortization and accretion
|
707
|
|
746
|
|
(5) %
|
|
2,149
|
|
2,285
|
|
(6) %
|
|
Depreciation,
amortization and accretion
|
167
|
|
159
|
|
5 %
|
|
499
|
|
490
|
|
2 %
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
N/M
|
|
136
|
|
—
|
|
N/M
|
|
(Gain) loss on asset
disposals, net
|
4
|
|
1
|
|
N/M
|
|
14
|
|
14
|
|
4 %
|
|
(Gain) loss on license
sales and exchanges, net
|
(2)
|
|
—
|
|
N/M
|
|
4
|
|
—
|
|
N/M
|
|
1,012
|
|
906
|
|
12 %
|
|
2,802
|
|
2,789
|
|
—
|
|
TDS Telecom
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding
depreciation, amortization and accretion
|
182
|
|
189
|
|
(4) %
|
|
533
|
|
563
|
|
(5) %
|
|
Depreciation,
amortization and accretion
|
68
|
|
61
|
|
11 %
|
|
199
|
|
180
|
|
11 %
|
|
(Gain) loss on asset
disposals, net
|
3
|
|
6
|
|
(52) %
|
|
8
|
|
8
|
|
—
|
|
252
|
|
256
|
|
(1) %
|
|
741
|
|
752
|
|
(1) %
|
|
All
Other1
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding
depreciation and amortization
|
49
|
|
64
|
|
(22) %
|
|
159
|
|
187
|
|
(14) %
|
|
Depreciation and
amortization
|
3
|
|
5
|
|
(73) %
|
|
6
|
|
11
|
|
(40) %
|
|
(Gain) loss on asset
disposals, net
|
(1)
|
|
(1)
|
|
N/M
|
|
1
|
|
—
|
|
N/M
|
|
(Gain) loss on sale of
business and other exit costs, net
|
(12)
|
|
—
|
|
N/M
|
|
(12)
|
|
—
|
|
N/M
|
|
40
|
|
68
|
|
(43) %
|
|
154
|
|
197
|
|
(22) %
|
|
Total operating
expenses
|
1,304
|
|
1,230
|
|
6 %
|
|
3,697
|
|
3,738
|
|
(1) %
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
UScellular
|
(90)
|
|
57
|
|
N/M
|
|
(3)
|
|
117
|
|
N/M
|
|
TDS Telecom
|
10
|
|
—
|
|
N/M
|
|
56
|
|
15
|
|
N/M
|
|
All
Other1
|
—
|
|
(9)
|
|
N/M
|
|
(26)
|
|
(22)
|
|
(18) %
|
|
(80)
|
|
48
|
|
N/M
|
|
27
|
|
110
|
|
(76) %
|
|
Investment and other
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
43
|
|
40
|
|
9 %
|
|
125
|
|
122
|
|
3 %
|
|
Interest and dividend
income
|
8
|
|
5
|
|
51 %
|
|
20
|
|
16
|
|
25 %
|
|
Interest
expense
|
(76)
|
|
(62)
|
|
(22) %
|
|
(208)
|
|
(178)
|
|
(17) %
|
|
Other, net
|
1
|
|
—
|
|
N/M
|
|
3
|
|
1
|
|
N/M
|
|
Total investment and
other expense
|
(24)
|
|
(17)
|
|
(41) %
|
|
(60)
|
|
(39)
|
|
(52) %
|
|
Income (loss) before
income taxes
|
(104)
|
|
31
|
|
N/M
|
|
(33)
|
|
71
|
|
N/M
|
|
Income tax expense
(benefit)
|
(25)
|
|
27
|
|
N/M
|
|
1
|
|
55
|
|
(98) %
|
|
Net income
(loss)
|
(79)
|
|
4
|
|
N/M
|
|
(34)
|
|
16
|
|
N/M
|
|
Less: Net income
(loss) attributable to noncontrolling interests, net of
tax
|
(13)
|
|
4
|
|
N/M
|
|
—
|
|
10
|
|
N/M
|
|
Net income (loss)
attributable to TDS shareholders
|
(66)
|
|
—
|
|
N/M
|
|
(34)
|
|
6
|
|
N/M
|
|
TDS Preferred Share
dividends
|
17
|
|
17
|
|
—
|
|
52
|
|
52
|
|
—
|
|
Net income (loss)
attributable to TDS common shareholders
|
$
(83)
|
|
$
(17)
|
|
N/M
|
|
$
(86)
|
|
$
(46)
|
|
(86) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
114
|
|
113
|
|
1 %
|
|
114
|
|
113
|
|
1 %
|
|
Basic earnings
(loss) per share attributable to TDS common
shareholders
|
$
(0.73)
|
|
$ (0.16)
|
|
N/M
|
|
$
(0.75)
|
|
$ (0.41)
|
|
(85) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
114
|
|
113
|
|
1 %
|
|
114
|
|
113
|
|
1 %
|
|
Diluted earnings
(loss) per share attributable to TDS common
shareholders
|
$
(0.73)
|
|
$ (0.16)
|
|
N/M
|
|
$
(0.75)
|
|
$ (0.41)
|
|
(83) %
|
|
|
N/M - Percentage change
not meaningful.
|
|
Numbers may not foot
due to rounding.
|
|
1
|
Consists of TDS
corporate, intercompany eliminations and all other business
operations not included in the UScellular and TDS Telecom
segments.
|
|
Telephone and Data
Systems, Inc
|
|
Consolidated
Statement of Cash Flows
|
|
(Unaudited)
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
(34)
|
|
$
16
|
|
Add (deduct)
adjustments to reconcile net income (loss) to net cash flows from
operating activities
|
|
|
|
|
Depreciation,
amortization and accretion
|
704
|
|
681
|
|
Bad debts
expense
|
72
|
|
77
|
|
Stock-based
compensation expense
|
48
|
|
27
|
|
Deferred income taxes,
net
|
(15)
|
|
38
|
|
Equity in earnings of
unconsolidated entities
|
(125)
|
|
(122)
|
|
Distributions from
unconsolidated entities
|
106
|
|
97
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
23
|
|
22
|
|
(Gain) loss on sale of
business and other exit costs, net
|
(12)
|
|
—
|
|
(Gain) loss on license
sales and exchanges, net
|
4
|
|
—
|
|
Other operating
activities
|
6
|
|
4
|
|
Changes in assets and
liabilities from operations
|
|
|
|
|
Accounts
receivable
|
33
|
|
11
|
|
Equipment installment
plans receivable
|
12
|
|
20
|
|
Inventory
|
37
|
|
87
|
|
Accounts
payable
|
3
|
|
(36)
|
|
Customer deposits and
deferred revenues
|
(3)
|
|
(15)
|
|
Accrued
taxes
|
16
|
|
72
|
|
Accrued
interest
|
13
|
|
8
|
|
Other assets and
liabilities
|
(91)
|
|
(64)
|
|
Net cash provided by
operating activities
|
933
|
|
923
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Cash paid for
additions to property, plant and equipment
|
(655)
|
|
(906)
|
|
Cash paid for
licenses
|
(17)
|
|
(24)
|
|
Cash received from
divestitures
|
91
|
|
—
|
|
Other investing
activities
|
1
|
|
8
|
|
Net cash used in
investing activities
|
(580)
|
|
(922)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Issuance of long-term
debt
|
440
|
|
781
|
|
Repayment of long-term
debt
|
(408)
|
|
(664)
|
|
Repayment of
short-term debt
|
—
|
|
(60)
|
|
Tax payments for TDS
stock-based compensation awards
|
(10)
|
|
(3)
|
|
Tax payments for
UScellular stock-based compensation awards
|
(11)
|
|
(6)
|
|
Repurchase of TDS
Common Shares
|
—
|
|
(6)
|
|
Repurchase of
UScellular Common Shares
|
(26)
|
|
—
|
|
Dividends paid to TDS
shareholders
|
(83)
|
|
(114)
|
|
Payment of debt
issuance costs
|
(16)
|
|
(4)
|
|
Distributions to
noncontrolling interests
|
(4)
|
|
(2)
|
|
Cash paid for software
license agreements
|
(32)
|
|
(29)
|
|
Other financing
activities
|
(1)
|
|
—
|
|
Net cash used in
financing activities
|
(151)
|
|
(107)
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
202
|
|
(106)
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
270
|
|
399
|
|
End of
period
|
$
472
|
|
$
293
|
|
Telephone and Data
Systems, Inc
|
|
Consolidated Balance
Sheet Highlights
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
(Dollars in
millions)
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
451
|
|
$
236
|
|
Accounts receivable,
net
|
997
|
|
1,074
|
|
Inventory,
net
|
167
|
|
208
|
|
Prepaid
expenses
|
88
|
|
86
|
|
Income taxes
receivable
|
3
|
|
4
|
|
Other current
assets
|
40
|
|
52
|
|
Total current
assets
|
1,746
|
|
1,660
|
|
|
|
|
|
Assets held for
sale
|
17
|
|
15
|
|
|
|
|
|
Licenses
|
4,586
|
|
4,702
|
|
|
|
|
|
Other intangible
assets, net
|
168
|
|
183
|
|
|
|
|
|
Investments in
unconsolidated entities
|
524
|
|
505
|
|
|
|
|
|
Property, plant
andequipment, net
|
4,987
|
|
5,062
|
|
|
|
|
|
Operating lease
right-of-use assets
|
970
|
|
987
|
|
|
|
|
|
Other assets and
deferred charges
|
728
|
|
807
|
|
|
|
|
|
Total
assets
|
$
13,726
|
|
$
13,921
|
|
Telephone and Data
Systems, Inc
|
|
Consolidated Balance
Sheet Highlights
|
|
(Unaudited)
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
(Dollars in millions,
except per share amounts)
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
29
|
|
$
26
|
|
Accounts
payable
|
334
|
|
360
|
|
Customer deposits and
deferred revenues
|
270
|
|
277
|
|
Accrued
interest
|
26
|
|
12
|
|
Accrued
taxes
|
49
|
|
43
|
|
Accrued
compensation
|
107
|
|
149
|
|
Short-term operating
lease liabilities
|
151
|
|
147
|
|
Other current
liabilities
|
132
|
|
170
|
|
Total current
liabilities
|
1,098
|
|
1,184
|
|
|
|
|
|
Liabilities held for
sale
|
7
|
|
—
|
|
|
|
|
|
Deferred liabilities
and credits
|
|
|
|
|
Deferred income tax
liability, net
|
961
|
|
975
|
|
Long-term operating
lease liabilities
|
862
|
|
890
|
|
Other deferred
liabilities and credits
|
812
|
|
784
|
|
|
|
|
|
Long-term debt,
net
|
4,097
|
|
4,080
|
|
|
|
|
|
Noncontrolling
interests with redemption features
|
16
|
|
12
|
|
|
|
|
|
Equity
|
|
|
|
|
TDS shareholders'
equity
|
|
|
|
|
Series A Common and
Common Shares, par value $0.01 per share
|
1
|
|
1
|
|
Capital in excess of
par value
|
2,557
|
|
2,558
|
|
Preferred Shares, par
value $0.01 per share
|
1,074
|
|
1,074
|
|
Treasury shares, at
cost
|
(433)
|
|
(465)
|
|
Accumulated other
comprehensive income
|
11
|
|
11
|
|
Retained
earnings
|
1,865
|
|
2,023
|
|
Total TDS
shareholders' equity
|
5,075
|
|
5,202
|
|
|
|
|
|
Noncontrolling
interests
|
798
|
|
794
|
|
|
|
|
|
Total
equity
|
5,873
|
|
5,996
|
|
|
|
|
|
Total liabilities
and equity
|
$
13,726
|
|
$
13,921
|
|
Balance Sheet
Highlights
|
|
(Unaudited)
|
|
|
|
September 30,
2024
|
|
|
|
TDS
|
|
TDS
Corporate
|
|
Intercompany
|
|
TDS
|
|
UScellular
|
|
Telecom
|
|
&
Other
|
|
Eliminations
|
|
Consolidated
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
272
|
|
$
83
|
|
$
175
|
|
$
(79)
|
|
$
451
|
|
|
|
|
|
|
|
|
|
|
|
Licenses and other
intangible assets
|
$
4,576
|
|
$
173
|
|
$
5
|
|
$
—
|
|
$
4,754
|
|
Investment in
unconsolidated entities
|
478
|
|
4
|
|
50
|
|
(8)
|
|
524
|
|
$
5,054
|
|
$
177
|
|
$
55
|
|
$
(8)
|
|
$
5,278
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
$
2,504
|
|
$
2,465
|
|
$
18
|
|
$
—
|
|
$
4,987
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt,
net:
|
|
|
|
|
|
|
|
|
|
|
Current
portion
|
$
20
|
|
$
—
|
|
$
9
|
|
$
—
|
|
$
29
|
|
Non-current
portion
|
2,882
|
|
3
|
|
1,212
|
|
—
|
|
4,097
|
|
$
2,902
|
|
$
3
|
|
$
1,221
|
|
$
—
|
|
$
4,126
|
|
United States
Cellular Corporation
Segment
Results
(Unaudited)
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September 30,
|
|
UScellular
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
$
896
|
|
$ 938
|
|
(4) %
|
|
$
2,722
|
|
$
2,831
|
|
(4) %
|
|
Towers
|
59
|
|
57
|
|
2 %
|
|
175
|
|
170
|
|
3 %
|
|
Intra-company
eliminations
|
(33)
|
|
(32)
|
|
(3) %
|
|
(98)
|
|
(95)
|
|
(3) %
|
|
Total operating
revenues
|
922
|
|
963
|
|
(4) %
|
|
2,799
|
|
2,906
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
1,005
|
|
900
|
|
12 %
|
|
2,784
|
|
2,770
|
|
1 %
|
|
Towers
|
40
|
|
38
|
|
4 %
|
|
116
|
|
114
|
|
1 %
|
|
Intra-company
eliminations
|
(33)
|
|
(32)
|
|
(3) %
|
|
(98)
|
|
(95)
|
|
(3) %
|
|
Total operating
expenses
|
1,012
|
|
906
|
|
12 %
|
|
2,802
|
|
2,789
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
(90)
|
|
$
57
|
|
N/M
|
|
$
(3)
|
|
$ 117
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
(Non-GAAP)
|
$
222
|
|
$ 220
|
|
1 %
|
|
$
678
|
|
$ 624
|
|
9 %
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
269
|
|
$ 263
|
|
3 %
|
|
$
810
|
|
$ 753
|
|
8 %
|
|
Capital
expenditures
|
$
120
|
|
$ 111
|
|
8 %
|
|
$
415
|
|
$ 462
|
|
(10) %
|
|
|
|
N/M - Percentage change
not meaningful
|
|
|
United States
Cellular Corporation
Segment
Results
(Unaudited)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
UScellular
Wireless
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
service
|
$
669
|
|
$ 687
|
|
(3) %
|
|
$
2,014
|
|
$
2,065
|
|
(2) %
|
|
Other
|
52
|
|
50
|
|
5 %
|
|
154
|
|
149
|
|
4 %
|
|
Service
revenues
|
721
|
|
737
|
|
(2) %
|
|
2,168
|
|
2,214
|
|
(2) %
|
|
Equipment
sales
|
175
|
|
201
|
|
(13) %
|
|
554
|
|
617
|
|
(10) %
|
|
Total operating
revenues
|
896
|
|
938
|
|
(4) %
|
|
2,722
|
|
2,831
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and
accretion reported below)
|
193
|
|
199
|
|
(3) %
|
|
582
|
|
597
|
|
(2) %
|
|
Cost of equipment
sold
|
203
|
|
228
|
|
(11) %
|
|
630
|
|
708
|
|
(11) %
|
|
Selling, general and
administrative
|
316
|
|
324
|
|
(3) %
|
|
953
|
|
995
|
|
(4) %
|
|
Depreciation,
amortization and accretion
|
155
|
|
148
|
|
5 %
|
|
466
|
|
456
|
|
2 %
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
N/M
|
|
136
|
|
—
|
|
N/M
|
|
(Gain) loss on asset
disposals, net
|
4
|
|
1
|
|
N/M
|
|
13
|
|
14
|
|
(1) %
|
|
(Gain) loss on license
sales and exchanges, net
|
(2)
|
|
—
|
|
N/M
|
|
4
|
|
—
|
|
N/M
|
|
Total operating
expenses
|
1,005
|
|
900
|
|
12 %
|
|
2,784
|
|
2,770
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$ (109)
|
|
$
38
|
|
N/M
|
|
$
(62)
|
|
$
61
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
(Non-GAAP)
|
$
191
|
|
$ 190
|
|
1 %
|
|
$
583
|
|
$ 534
|
|
9 %
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
191
|
|
$ 190
|
|
1 %
|
|
$
583
|
|
$ 534
|
|
9 %
|
|
Capital
expenditures
|
$
114
|
|
$ 106
|
|
7 %
|
|
$
400
|
|
$ 452
|
|
(12) %
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September 30,
|
|
UScellular
Towers
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-party
revenues
|
$
26
|
|
$
25
|
|
1 %
|
|
$
77
|
|
$
75
|
|
2 %
|
|
Intra-company
revenues
|
33
|
|
32
|
|
3 %
|
|
98
|
|
95
|
|
3 %
|
|
Total tower
revenues
|
59
|
|
57
|
|
2 %
|
|
175
|
|
170
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and
accretion reported below)
|
20
|
|
18
|
|
10 %
|
|
58
|
|
55
|
|
4 %
|
|
Selling, general and
administrative
|
8
|
|
9
|
|
(14) %
|
|
24
|
|
25
|
|
(7) %
|
|
Depreciation,
amortization and accretion
|
12
|
|
11
|
|
7 %
|
|
33
|
|
34
|
|
(1) %
|
|
(Gain) loss on asset
disposals, net
|
—
|
|
—
|
|
N/M
|
|
1
|
|
—
|
|
N/M
|
|
Total operating
expenses
|
40
|
|
38
|
|
4 %
|
|
116
|
|
114
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
19
|
|
$
19
|
|
(1) %
|
|
$
59
|
|
$
56
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
(Non-GAAP)
|
$
31
|
|
$
30
|
|
3 %
|
|
$
95
|
|
$
90
|
|
6 %
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
31
|
|
$
30
|
|
3 %
|
|
$
95
|
|
$
90
|
|
6 %
|
|
Capital
expenditures
|
$
6
|
|
$
5
|
|
33 %
|
|
$
15
|
|
$
10
|
|
61 %
|
|
|
|
N/M - Percentage change
not meaningful
|
|
|
TDS Telecom
Highlights
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
Incumbent
|
$
90
|
|
$
89
|
|
1 %
|
|
$
269
|
|
$ 264
|
|
2 %
|
|
Expansion
|
29
|
|
20
|
|
46 %
|
|
83
|
|
52
|
|
58 %
|
|
Cable
|
67
|
|
68
|
|
(2) %
|
|
206
|
|
204
|
|
1 %
|
|
Total
residential
|
186
|
|
177
|
|
5 %
|
|
558
|
|
521
|
|
7 %
|
|
Commercial
|
36
|
|
38
|
|
(4) %
|
|
110
|
|
118
|
|
(7) %
|
|
Wholesale
|
40
|
|
42
|
|
(3) %
|
|
128
|
|
127
|
|
1 %
|
|
Total service
revenues
|
262
|
|
256
|
|
2 %
|
|
796
|
|
766
|
|
4 %
|
|
Equipment
revenues
|
—
|
|
—
|
|
(6) %
|
|
1
|
|
1
|
|
(10) %
|
|
Total operating
revenues
|
263
|
|
256
|
|
2 %
|
|
797
|
|
767
|
|
4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
101
|
|
107
|
|
(6) %
|
|
297
|
|
319
|
|
(7) %
|
|
Cost of equipment and
products
|
—
|
|
—
|
|
26 %
|
|
1
|
|
—
|
|
4 %
|
|
Selling, general and
administrative expenses
|
81
|
|
82
|
|
(1) %
|
|
236
|
|
244
|
|
(3) %
|
|
Depreciation,
amortization and accretion
|
68
|
|
61
|
|
11 %
|
|
199
|
|
180
|
|
11 %
|
|
(Gain) loss on asset
disposals, net
|
3
|
|
6
|
|
(52) %
|
|
8
|
|
8
|
|
—
|
|
Total operating
expenses
|
252
|
|
256
|
|
(1) %
|
|
741
|
|
752
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
10
|
|
$
—
|
|
N/M
|
|
$
56
|
|
$
15
|
|
N/M
|
|
|
|
N/M - Percentage change
not meaningful
|
|
|
Numbers may not foot
due to rounding.
|
|
Telephone and Data
Systems, Inc
Financial
Measures
(Unaudited)
Free Cash
Flow
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
TDS -
CONSOLIDATED
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities (GAAP)
|
$
306
|
|
$
408
|
|
$
933
|
|
$
923
|
|
Cash paid for additions
to property, plant and equipment
|
(203)
|
|
(278)
|
|
(655)
|
|
(906)
|
|
Cash paid for software
license agreements
|
(11)
|
|
(9)
|
|
(32)
|
|
(29)
|
|
Free cash flow
(Non-GAAP)1
|
$
92
|
|
$
121
|
|
$
246
|
|
$
(12)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
UScellular
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities (GAAP)
|
$
245
|
|
$
329
|
|
$
761
|
|
$
719
|
|
Cash paid for additions
to property, plant and equipment
|
(129)
|
|
(103)
|
|
(399)
|
|
(454)
|
|
Cash paid for software
license agreements
|
(11)
|
|
(9)
|
|
(31)
|
|
(28)
|
|
Free cash flow
(Non-GAAP)1
|
$
105
|
|
$
217
|
|
$
331
|
|
$
237
|
|
|
|
1
|
Free cash flow is a non-GAAP financial measure which
TDS believes may be useful to investors and other users of its
financial information in evaluating liquidity, specifically, the
amount of net cash generated by
business operations after deducting Cash paid for additions to
property, plant and equipment and Cash paid for software license
agreements.
|
|
Licenses impairment,
net of tax
|
|
|
The following non-GAAP financial measure isolates the
total effects on net income of the current period Loss on
impairment of intangible assets
at UScellular, including tax
impacts. TDS believes
this measure may be useful to investors and other users of its
financial information to assist in comparing the current period
financial results with periods that were not impacted by such a
charge.
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Net loss
attributable to TDS common shareholders (GAAP)
|
$
(83)
|
|
$
(17)
|
|
$
(86)
|
|
$
(46)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
136
|
|
—
|
|
Deferred tax benefit
on the tax-amortizable portion of the
impaired licenses
|
(34)
|
|
—
|
|
(34)
|
|
—
|
|
UScellular
noncontrolling public shareholders' portion of the
impaired licenses
|
(17)
|
|
—
|
|
(17)
|
|
—
|
|
Subtotal of Non-GAAP
adjustments
|
85
|
|
—
|
|
85
|
|
—
|
|
Net income (loss)
attributable to TDS common shareholders
excluding licenses impairment charge (Non-GAAP)
|
2
|
|
(17)
|
|
(1)
|
|
(46)
|
|
Noncontrolling
interest adjustment to compute diluted earnings
(loss)
|
(1)
|
|
(1)
|
|
(1)
|
|
—
|
|
Net income (loss)
attributable to TDS common shareholders
excluding licenses impairment charge used in diluted earnings
(loss) per share (Non-GAAP)
|
$
1
|
|
$
(18)
|
|
$
(2)
|
|
$
(46)
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding used for diluted
loss per share attributable to TDS common shareholders
|
114
|
|
113
|
|
114
|
|
113
|
|
Diluted weighted
average shares outstanding used for diluted
earnings (loss) per share attributable to TDS common
shareholders excluding licenses impairment charge
|
117
|
|
113
|
|
114
|
|
113
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to TDS
common shareholders (GAAP)
|
$
(0.73)
|
|
$
(0.16)
|
|
$
(0.75)
|
|
$
(0.41)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
licenses
|
1.18
|
|
—
|
|
1.19
|
|
—
|
|
Deferred tax benefit
on the tax-amortizable portion of the
impaired licenses
|
(0.29)
|
|
—
|
|
(0.30)
|
|
—
|
|
UScellular
noncontrolling public shareholders' portion of the
impaired licenses
|
(0.15)
|
|
—
|
|
(0.16)
|
|
—
|
|
Diluted earnings (loss)
per share attributable to TDS common
shareholders excluding licenses impairment charge
(Non-GAAP)
|
$
0.01
|
|
$
(0.16)
|
|
$
(0.02)
|
|
$
(0.41)
|
|
Telephone and Data
Systems, Inc.
EBITDA, Adjusted EBITDA and Adjusted OIBDA
(Unaudited)
|
|
The following table
reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the
corresponding GAAP measures, Net income and Income before income
taxes
|
|
Three Months
Ended
September
30,
|
|
TDS
TELECOM
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
Net income
(GAAP)
|
$
9
|
|
$
4
|
|
Add back:
|
|
|
|
|
Income tax
expense
|
4
|
|
—
|
|
Income before income
taxes (GAAP)
|
14
|
|
4
|
|
Add back:
|
|
|
|
|
Interest
expense
|
(1)
|
|
(2)
|
|
Depreciation,
amortization and accretion
|
68
|
|
61
|
|
EBITDA
(Non-GAAP)
|
80
|
|
63
|
|
Add back or
deduct:
|
|
|
|
|
(Gain) loss on asset
disposals, net
|
3
|
|
6
|
|
Adjusted EBITDA
(Non-GAAP)
|
83
|
|
68
|
|
Deduct:
|
|
|
|
|
Interest and dividend
income
|
1
|
|
1
|
|
Other, net
|
1
|
|
—
|
|
Adjusted OIBDA
(Non-GAAP)
|
$
81
|
|
$
67
|
|
|
|
Numbers may not foot
due to rounding.
|
|
View original
content:https://www.prnewswire.com/news-releases/tds-reports-third-quarter-2024-results-302293870.html
SOURCE Telephone and Data Systems, Inc.