CHICAGO, Nov. 1, 2024 /PRNewswire/ --
As previously announced, UScellular 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.uscellular.com.
United States Cellular Corporation (NYSE:USM) reported total
operating revenues of $922 million
for the third quarter of 2024, versus $963
million for the same period one year ago. Service revenues
totaled $747 million, versus
$762 million for the same period one
year ago. Net income (loss) attributable to UScellular shareholders
and related diluted earnings (loss) per share were $(79) million and $(0.92), respectively, for the third quarter of
2024 compared to $23 million and
$0.26, respectively, in the same
period one year ago.
Net income attributable to UScellular shareholders excluding a
2024 license impairment (non-GAAP) of $136
million ($102 million, net of
tax) and related Diluted earnings (loss) per share attributable to
UScellular shareholders excluding a 2024 license impairment
(non-GAAP) were $23 million and
$0.26, respectively, for both the
third quarter of 2024 and 2023. 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*
- Announced sale of select spectrum assets for $1 billion to Verizon in October 2024, and the sale of additional spectrum
to two other mobile 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
* Comparisons are 3Q'23 to 3Q'24 unless otherwise noted
"Postpaid handset results improved year-over-year due to our
promotional and retention actions," said Laurent C. Therivel, UScellular President and
CEO. "While overall postpaid handset net adds remained negative, I
am pleased with our improving subscriber trajectory. Solid postpaid
ARPU growth coupled with strong expense discipline gives us
confidence to raise our 2024 Adjusted EBITDA guidance.
"Given that our network investments over the past few years have
resulted in strong 5G coverage in our footprint, future network
investments are expected to predominately focus on the deployment
of our mid-band spectrum to enhance speed and capacity.
"Additionally, I am very pleased that we recently announced
agreements with multiple mobile network operators for the sale of
portions of our retained spectrum licenses in exchange for proceeds
of $1 billion. These transactions are
part of our objective to opportunistically monetize the spectrum
not included in the proposed T-Mobile transaction."
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
UScellular's current estimates of full-year 2024 results 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. UScellular 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
|
|
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
|
The following table reconciles 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, UScellular has not completed the below
reconciliation to Net income (loss) because it does not provide
guidance for income taxes. Although potentially significant,
UScellular believes that the impact of income taxes cannot be
reasonably predicted; therefore, UScellular is unable to provide
such guidance.
|
|
|
Actual
Results
|
|
2024 Estimated
Results2
|
|
Nine Months
Ended
September 30,
2024
|
|
Year Ended
December 31, 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
N/A
|
|
($37)
|
|
$58
|
|
Add back:
|
|
|
|
|
|
|
Income tax
expense
|
N/A
|
|
29
|
|
53
|
|
Income (loss) before
income taxes (GAAP)
|
$(35)-$40
|
|
($8)
|
|
$111
|
|
Add back:
|
|
|
|
|
|
|
Interest
expense
|
180
|
|
137
|
|
196
|
|
Depreciation,
amortization and accretion expense
|
665
|
|
499
|
|
656
|
|
EBITDA
(Non-GAAP)1
|
$810-$885
|
|
$628
|
|
$963
|
|
Add back or
deduct:
|
|
|
|
|
|
|
Expenses related to
strategic alternatives review
|
—
|
|
28
|
|
8
|
|
Loss on impairment of
licenses
|
135
|
|
136
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
20
|
|
14
|
|
17
|
|
(Gain) loss on license
sales and exchanges, net
|
5
|
|
4
|
|
(2)
|
|
Adjusted EBITDA
(Non-GAAP)1
|
$970-$1,045
|
|
$810
|
|
$986
|
|
Deduct:
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
160
|
|
123
|
|
158
|
|
Interest and dividend
income
|
10
|
|
9
|
|
10
|
|
Adjusted OIBDA
(Non-GAAP)1
|
$800-$875
|
|
$678
|
|
$818
|
|
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. UScellular 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 UScellular's 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 UScellular's 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 UScellular's website at
investors.uscellular.com.
|
|
2
|
2024 Estimated
Results do not reflect any anticipated costs, expenses or results
of the strategic alternatives review referenced above.
|
Stock Repurchase
During the third quarter of 2024,
UScellular repurchased 474,074 of its Common Shares for
$26 million.
Conference Call Information
UScellular 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.uscellular.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.uscellular.com. The call will be archived on the Events
& Presentations page of investors.uscellular.com.
About UScellular
United States Cellular Corporation
provides a comprehensive range of wireless products and services,
excellent customer support, and a high-quality network to customers
with 4.5 million retail connections in 21 states. The Chicago-based company had 4,200 full- and
part-time associates as of September 30,
2024. At the end of the third quarter of 2024, Telephone and
Data Systems, Inc. owned approximately 83 percent of UScellular.
For more information about UScellular, visit uscellular.com.
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 UScellular and its shareholders and whether
the process will have an adverse impact on UScellular's business;
strategic decisions regarding the tower business; intense
competition; the ability to attract people of outstanding talent
throughout all levels of the organization; UScellular's smaller
scale relative to larger competitors; 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; 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 UScellular's businesses; the ability
of the company to successfully construct and manage its networks;
difficulties involving third parties with which UScellular does
business; uncertainties in UScellular's future cash flows and
liquidity and access to the capital markets; the ability to make
payments on UScellular indebtedness or comply with the terms of
debt covenants; 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 regulatory fees to
customers; pending and future litigation; cyber-attacks or other
breaches of network or information technology security; potential
conflicts of interests between TDS and UScellular; 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
UScellular's Form 10-K, as updated by any UScellular Form 10-Q
filed subsequent to such Form 10-K.
For more information about UScellular, visit:
www.uscellular.com
|
United States
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:
|
|
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.
|
|
|
United States
Cellular Corporation
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$ 747
|
|
$ 762
|
|
(2) %
|
|
$
2,245
|
|
$
2,289
|
|
(2) %
|
|
Equipment
sales
|
175
|
|
201
|
|
(13) %
|
|
554
|
|
617
|
|
(10) %
|
|
Total operating
revenues
|
922
|
|
963
|
|
(4) %
|
|
2,799
|
|
2,906
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and
accretion reported below)
|
180
|
|
185
|
|
(2) %
|
|
542
|
|
557
|
|
(3) %
|
|
Cost of equipment
sold
|
203
|
|
228
|
|
(11) %
|
|
630
|
|
708
|
|
(11) %
|
|
Selling, general and
administrative
|
324
|
|
333
|
|
(3) %
|
|
977
|
|
1,020
|
|
(4) %
|
|
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
|
|
Total operating
expenses
|
1,012
|
|
906
|
|
12 %
|
|
2,802
|
|
2,789
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(90)
|
|
57
|
|
N/M
|
|
(3)
|
|
117
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
43
|
|
40
|
|
9 %
|
|
123
|
|
121
|
|
2 %
|
|
Interest and dividend
income
|
4
|
|
3
|
|
28 %
|
|
9
|
|
8
|
|
17 %
|
|
Interest
expense
|
(49)
|
|
(50)
|
|
2 %
|
|
(137)
|
|
(147)
|
|
6 %
|
|
Total investment and
other expense
|
(2)
|
|
(7)
|
|
80 %
|
|
(5)
|
|
(18)
|
|
68 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(92)
|
|
50
|
|
N/M
|
|
(8)
|
|
99
|
|
N/M
|
|
Income tax expense
(benefit)
|
(14)
|
|
27
|
|
N/M
|
|
29
|
|
56
|
|
(50) %
|
|
Net income
(loss)
|
(78)
|
|
23
|
|
N/M
|
|
(37)
|
|
43
|
|
N/M
|
|
Less: Net income
attributable to noncontrolling interests, net of tax
|
1
|
|
—
|
|
(19) %
|
|
7
|
|
3
|
|
N/M
|
|
Net income (loss)
attributable to UScellular shareholders
|
$
(79)
|
|
$
23
|
|
N/M
|
|
$
(44)
|
|
$
40
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
86
|
|
85
|
|
1 %
|
|
86
|
|
85
|
|
1 %
|
|
Basic earnings
(loss) per share attributable to UScellular
shareholders
|
$
(0.92)
|
|
$
0.26
|
|
N/M
|
|
$
(0.51)
|
|
$
0.47
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
86
|
|
86
|
|
(1) %
|
|
86
|
|
86
|
|
(1) %
|
|
Diluted earnings
(loss) per share attributable to UScellular
shareholders
|
$
(0.92)
|
|
$
0.26
|
|
N/M
|
|
$
(0.51)
|
|
$
0.47
|
|
N/M
|
|
N/M - Percentage change
not meaningful
|
|
|
United States
Cellular Corporation
|
|
Consolidated
Statement of Cash Flows
|
|
(Unaudited)
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
(37)
|
|
$
43
|
|
Add (deduct)
adjustments to reconcile net income (loss) to net cash flows from
operating
activities
|
|
|
|
|
Depreciation,
amortization and accretion
|
499
|
|
490
|
|
Bad debts
expense
|
65
|
|
72
|
|
Stock-based
compensation expense
|
37
|
|
14
|
|
Deferred income taxes,
net
|
(35)
|
|
41
|
|
Equity in earnings of
unconsolidated entities
|
(123)
|
|
(121)
|
|
Distributions from
unconsolidated entities
|
106
|
|
97
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
14
|
|
14
|
|
(Gain) loss on license
sales and exchanges, net
|
4
|
|
—
|
|
Other operating
activities
|
3
|
|
4
|
|
Changes in assets and
liabilities from operations
|
|
|
|
|
Accounts
receivable
|
30
|
|
30
|
|
Equipment installment
plans receivable
|
12
|
|
20
|
|
Inventory
|
38
|
|
86
|
|
Accounts
payable
|
12
|
|
(39)
|
|
Customer deposits and
deferred revenues
|
(4)
|
|
(16)
|
|
Accrued
taxes
|
46
|
|
12
|
|
Accrued
interest
|
8
|
|
7
|
|
Other assets and
liabilities
|
(50)
|
|
(35)
|
|
Net cash provided by
operating activities
|
761
|
|
719
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Cash paid for
additions to property, plant and equipment
|
(399)
|
|
(454)
|
|
Cash paid for
licenses
|
(17)
|
|
(24)
|
|
Other investing
activities
|
1
|
|
14
|
|
Net cash used in
investing activities
|
(415)
|
|
(464)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Issuance of long-term
debt
|
40
|
|
115
|
|
Repayment of long-term
debt
|
(203)
|
|
(395)
|
|
Repayment of
short-term debt
|
—
|
|
(60)
|
|
Tax payments for
stock-based compensation awards
|
(11)
|
|
(6)
|
|
Repurchase of Common
Shares
|
(26)
|
|
—
|
|
Distributions to
noncontrolling interests
|
(4)
|
|
(2)
|
|
Cash paid for software
license agreements
|
(31)
|
|
(28)
|
|
Other financing
activities
|
(2)
|
|
(2)
|
|
Net cash used in
financing activities
|
(237)
|
|
(378)
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
109
|
|
(123)
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
179
|
|
308
|
|
End of
period
|
$
288
|
|
$
185
|
|
United States
Cellular Corporation
|
|
Consolidated Balance
Sheet Highlights
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
(Dollars in
millions)
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
272
|
|
$
150
|
|
Accounts receivable,
net
|
918
|
|
957
|
|
Inventory,
net
|
161
|
|
199
|
|
Prepaid
expenses
|
55
|
|
57
|
|
Income taxes
receivable
|
—
|
|
1
|
|
Other current
assets
|
21
|
|
36
|
|
Total current
assets
|
1,427
|
|
1,400
|
|
|
|
|
|
Assets held for
sale
|
—
|
|
15
|
|
|
|
|
|
Licenses
|
4,576
|
|
4,693
|
|
|
|
|
|
Investments in
unconsolidated entities
|
478
|
|
461
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,504
|
|
2,576
|
|
|
|
|
|
Operating lease
right-of-use assets
|
912
|
|
915
|
|
|
|
|
|
Other assets and
deferred charges
|
619
|
|
690
|
|
|
|
|
|
Total
assets
|
$
10,516
|
|
$
10,750
|
|
United States
Cellular Corporation
|
|
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
|
$
20
|
|
$
20
|
|
Accounts
payable
|
272
|
|
248
|
|
Customer deposits and
deferred revenues
|
225
|
|
229
|
|
Accrued
taxes
|
63
|
|
32
|
|
Accrued
compensation
|
66
|
|
83
|
|
Short-term operating
lease liabilities
|
139
|
|
135
|
|
Other current
liabilities
|
124
|
|
154
|
|
Total current
liabilities
|
909
|
|
901
|
|
|
|
|
|
Deferred liabilities
and credits
|
|
|
|
|
Deferred income tax
liability, net
|
719
|
|
755
|
|
Long-term operating
lease liabilities
|
813
|
|
831
|
|
Other deferred
liabilities and credits
|
579
|
|
565
|
|
|
|
|
|
Long-term debt,
net
|
2,882
|
|
3,044
|
|
|
|
|
|
Noncontrolling
interests with redemption features
|
16
|
|
12
|
|
|
|
|
|
Equity
|
|
|
|
|
UScellular
shareholders' equity
|
|
|
|
|
Series A Common and
Common Shares, par value $1.00 per share
|
88
|
|
88
|
|
Additional paid-in
capital
|
1,764
|
|
1,726
|
|
Treasury
shares
|
(83)
|
|
(80)
|
|
Retained
earnings
|
2,813
|
|
2,892
|
|
Total UScellular
shareholders' equity
|
4,582
|
|
4,626
|
|
|
|
|
|
Noncontrolling
interests
|
16
|
|
16
|
|
|
|
|
|
Total
equity
|
4,598
|
|
4,642
|
|
|
|
|
|
Total liabilities
and equity
|
$
10,516
|
|
$
10,750
|
|
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
|
|
|
United States
Cellular Corporation
|
|
Financial
Measures
|
|
(Unaudited)
|
|
|
Free Cash
Flow
|
|
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 UScellular 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
licenses at UScellular, including tax impacts. UScellular 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 income (loss)
attributable to UScellular shareholders
(GAAP)
|
$
(79)
|
|
$
23
|
|
$
(44)
|
|
$
40
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
136
|
|
—
|
|
Deferred tax benefit
on the tax-amortizable portion of the
impaired licenses
|
(34)
|
|
—
|
|
(34)
|
|
—
|
|
Subtotal of Non-GAAP
adjustments
|
102
|
|
—
|
|
102
|
|
—
|
|
Net income attributable
to UScellular shareholders excluding
licenses impairment charge (Non-GAAP)
|
$
23
|
|
$
23
|
|
$
58
|
|
$
40
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding used for diluted
earnings (loss) per share attributable to UScellular
shareholders
|
86
|
|
86
|
|
86
|
|
86
|
|
Diluted weighted
average shares outstanding used for diluted
earnings (loss) per share attributable to UScellular
shareholders
excluding licenses impairment charge
|
88
|
|
86
|
|
88
|
|
86
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to UScellular
shareholders (GAAP)
|
$
(0.92)
|
|
$
0.26
|
|
$
(0.51)
|
|
$
0.47
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
licenses
|
1.56
|
|
—
|
|
1.55
|
|
—
|
|
Deferred tax benefit
on the tax-amortizable portion of the
impaired licenses
|
(0.38)
|
|
—
|
|
(0.38)
|
|
—
|
|
Diluted earnings (loss)
per share attributable to UScellular
shareholders excluding licenses impairment charge
(Non-GAAP)
|
$
0.26
|
|
$
0.26
|
|
$
0.66
|
|
$
0.47
|
View original
content:https://www.prnewswire.com/news-releases/uscellular-reports-third-quarter-2024-results-302293717.html
SOURCE United States Cellular Corporation