As previously announced, UScellular will hold
a teleconference on February 21, 2025
at 9:00 a.m. CST. Listen to the call
live via the Events & Presentations page of
investors.uscellular.com.
CHICAGO, Feb. 21,
2025 /PRNewswire/ -- United States Cellular
Corporation (NYSE: USM) reported total operating revenues of
$970 million for the fourth quarter
of 2024, versus $1,000 million for
the same period one year ago. Net income attributable to
UScellular shareholders and related diluted earnings per share were
$5 million and $0.05, respectively, for the fourth quarter of
2024 compared to $14 million and
$0.16, respectively, in the same
period one year ago.
UScellular reported total operating revenues of $3,770 million and $3,906
million for the years ended 2024 and 2023, respectively. Net
income (loss) attributable to UScellular shareholders and related
diluted earnings (loss) per share were $(39)
million and $(0.46),
respectively, for the year ended 2024 compared to $54 million and $0.63, respectively, for the year ended 2023.
Net income attributable to UScellular shareholders excluding a
third quarter 2024 license impairment (non-GAAP) of $136 million ($102
million, net of tax) and related diluted earnings per share
excluding a third quarter 2024 license impairment (non-GAAP) were
$63 million and $0.71, respectively, for the year ended 2024
compared to $54 million and
$0.63, respectively, for the year
ended 2023. Substantially all of the impairment loss was related to
the retained high-band spectrum unit of accounting which includes
the 28 GHz, 37 GHz and 39 GHz frequency bands.
Full-year 2024 Highlights*
- Announced multiple transactions related to the strategic
alternatives review
- Transaction with T-Mobile and four spectrum transactions with
various mobile network operators
- Improved wireless operating results
- Postpaid and prepaid net losses improved
- Postpaid and prepaid churn improved
- Fixed wireless customers grew 27%
- Cash flows from operating activities and free cash flow up
year over year
- Ongoing 5G mid-band network deployment — providing
additional capacity and faster speeds for our customers
*Comparisons are Year Ended December 31,
2024 to Year Ended December 31,
2023
"In 2024, UScellular made significant progress in enhancing
shareholder value, while remaining steadfast in its mission of
connecting people to what matters most," said Laurent Therivel, UScellular President and CEO.
"We also maintained strong financial discipline resulting in solid
growth in profitability and free cash flow.
"While subscriber results remained negative, we saw meaningful
improvement in postpaid and prepaid additions in the third and
fourth quarters of 2024. We intend to build on this momentum and
will continue to invest in our customers and our network while
working towards closing the transactions that we have previously
announced."
Announced Transactions
On May 24, 2024, Telephone and
Data Systems, Inc. (TDS) and UScellular entered into a Securities
Purchase Agreement to sell UScellular's wireless operations and
select spectrum assets to T-Mobile US, Inc. (T-Mobile). The
transaction is expected to close in mid-2025, subject to regulatory
approval and the satisfaction of customary closing conditions.
On October 17, 2024, UScellular,
and certain subsidiaries of UScellular, entered into a License
Purchase Agreement with Verizon Communications, Inc. (Verizon) to
sell certain AWS, Cellular and PCS wireless spectrum licenses,
subject to receipt of regulatory approvals, and agreed to grant
Verizon certain rights to lease such licenses prior to the
transaction close. Additionally, UScellular also entered into
agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for
the sale of select spectrum licenses.
On November 6, 2024, UScellular,
and certain subsidiaries of UScellular, entered into a License
Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T),
a subsidiary of AT&T Inc. to sell certain 3.45 GHz and 700 MHz
wireless spectrum licenses, subject to receipt of regulatory
approvals, and agreed to grant AT&T certain rights to lease and
sub-lease such licenses prior to the transaction close.
Due to the pending transaction with T-Mobile, UScellular is not
providing 2025 financial guidance.
Stock Repurchase
During 2024, UScellular repurchased 939,999 of its Common Shares
for $55 million.
Conference Call Information
UScellular will hold a conference call on February 21,
2025 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/548841993
- Access the call by phone at (888) 330-2384 (US/Canada), 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 4.4 million
retail connections in 21 states. The Chicago-based company had 4,100 full- and
part-time associates as of December 31,
2024. At the end of the fourth quarter of 2024, TDS owned
approximately 83% 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;
if the announced transactions are not successfully completed there
may be substantial changes in which the wireless business is
conducted; if the announced transactions are successfully
completed, substantial costs will be triggered and changes required
in the manner in which UScellular's remaining business is
conducted; strategic decisions regarding the tower business;
intense competition; the ability to attract people of outstanding
talent throughout all levels of the organization; UScellular's lack
of 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 certain 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.
|
United States
Cellular Corporation
Summary Operating Data (Unaudited)
|
|
|
As of or for the
Quarter Ended
|
12/31/2024
|
|
9/30/2024
|
|
6/30/2024
|
|
3/31/2024
|
|
12/31/2023
|
|
Retail
Connections
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
|
|
|
|
|
|
|
Total at end of
period1
|
3,985,000
|
|
3,999,000
|
|
4,027,000
|
|
4,051,000
|
|
4,106,000
|
|
Gross
additions
|
140,000
|
|
123,000
|
|
117,000
|
|
106,000
|
|
129,000
|
|
Handsets
|
93,000
|
|
84,000
|
|
73,000
|
|
63,000
|
|
80,000
|
|
Connected
devices
|
47,000
|
|
39,000
|
|
44,000
|
|
43,000
|
|
49,000
|
|
Net additions
(losses)1
|
(14,000)
|
|
(28,000)
|
|
(24,000)
|
|
(44,000)
|
|
(50,000)
|
|
Handsets
|
(19,000)
|
|
(28,000)
|
|
(29,000)
|
|
(47,000)
|
|
(53,000)
|
|
Connected
devices
|
5,000
|
|
—
|
|
5,000
|
|
3,000
|
|
3,000
|
|
ARPU2
|
$
51.73
|
|
$
52.04
|
|
$
51.45
|
|
$
51.96
|
|
$
51.61
|
|
ARPA3
|
$
131.10
|
|
$ 131.81
|
|
$ 130.41
|
|
$ 132.00
|
|
$ 131.63
|
|
Handset upgrade
rate4
|
4.8 %
|
|
3.5 %
|
|
4.1 %
|
|
4.5 %
|
|
5.8 %
|
|
Churn
rate5
|
1.29 %
|
|
1.25 %
|
|
1.16 %
|
|
1.22 %
|
|
1.44 %
|
|
Handsets
|
1.08 %
|
|
1.07 %
|
|
0.97 %
|
|
1.03 %
|
|
1.22 %
|
|
Connected
devices
|
2.67 %
|
|
2.47 %
|
|
2.47 %
|
|
2.52 %
|
|
3.03 %
|
|
Prepaid
|
|
|
|
|
|
|
|
|
|
|
Total at end of
period1
|
448,000
|
|
452,000
|
|
439,000
|
|
436,000
|
|
451,000
|
|
Gross
additions
|
46,000
|
|
57,000
|
|
50,000
|
|
41,000
|
|
43,000
|
|
Net additions
(losses)1
|
(4,000)
|
|
13,000
|
|
3,000
|
|
(13,000)
|
|
(11,000)
|
|
ARPU2,
6
|
$
30.59
|
|
$
32.01
|
|
$
32.37
|
|
$
32.25
|
|
$
32.32
|
|
Churn
rate5
|
3.70 %
|
|
3.30 %
|
|
3.60 %
|
|
4.06 %
|
|
3.87 %
|
|
Market penetration
at end of period
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating
population
|
32,550,000
|
|
32,550,000
|
|
32,550,000
|
|
32,550,000
|
|
32,350,000
|
|
Consolidated operating
penetration7
|
15 %
|
|
15 %
|
|
15 %
|
|
14 %
|
|
15 %
|
|
Capital expenditures
(millions)
|
$
162
|
|
$
120
|
|
$
165
|
|
$
131
|
|
$
148
|
|
Total cell sites in
service
|
7,010
|
|
7,007
|
|
6,990
|
|
6,995
|
|
7,000
|
|
Owned
towers
|
4,409
|
|
4,407
|
|
4,388
|
|
4,382
|
|
4,373
|
|
Number of
colocations8
|
2,444
|
|
2,418
|
|
2,392
|
|
2,397
|
|
2,390
|
|
Tower tenancy
rate9
|
1.55
|
|
1.55
|
|
1.55
|
|
1.55
|
|
1.55
|
|
Due to rounding, the
sum of quarterly results may not equal the total for the
year.
|
|
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.
|
|
United States
Cellular Corporation
|
|
Consolidated
Statement of Operations
Highlights
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2024
|
|
2023
|
|
2024 vs.
2023
|
|
2024
|
|
2023
|
|
2024 vs.
2023
|
|
(Dollars and shares in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$ 742
|
|
$
755
|
|
(2) %
|
|
$
2,987
|
|
$
3,044
|
|
(2) %
|
|
Equipment
sales
|
228
|
|
245
|
|
(7) %
|
|
783
|
|
862
|
|
(9) %
|
|
Total operating
revenues
|
970
|
|
1,000
|
|
(3) %
|
|
3,770
|
|
3,906
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and
accretion reported below)
|
182
|
|
183
|
|
(1) %
|
|
724
|
|
740
|
|
(2) %
|
|
Cost of equipment
sold
|
276
|
|
280
|
|
(1) %
|
|
906
|
|
988
|
|
(8) %
|
|
Selling, general and
administrative
|
353
|
|
349
|
|
1 %
|
|
1,330
|
|
1,368
|
|
(3) %
|
|
Depreciation,
amortization and accretion
|
165
|
|
166
|
|
—
|
|
665
|
|
656
|
|
1 %
|
|
Loss on impairment of
licenses
|
—
|
|
—
|
|
—
|
|
136
|
|
—
|
|
N/M
|
|
(Gain) loss on asset
disposals, net
|
4
|
|
3
|
|
3 %
|
|
18
|
|
17
|
|
3 %
|
|
(Gain) loss on license
sales and exchanges, net
|
(1)
|
|
(2)
|
|
59 %
|
|
3
|
|
(2)
|
|
N/M
|
|
Total operating
expenses
|
979
|
|
979
|
|
—
|
|
3,782
|
|
3,767
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(9)
|
|
21
|
|
N/M
|
|
(12)
|
|
139
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
38
|
|
37
|
|
3 %
|
|
161
|
|
158
|
|
2 %
|
|
Interest and dividend
income
|
3
|
|
2
|
|
29 %
|
|
12
|
|
10
|
|
19 %
|
|
Interest
expense
|
(46)
|
|
(49)
|
|
8 %
|
|
(183)
|
|
(196)
|
|
7 %
|
|
Total investment and
other income (expense)
|
(5)
|
|
(10)
|
|
53 %
|
|
(10)
|
|
(28)
|
|
63 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(14)
|
|
11
|
|
N/M
|
|
(22)
|
|
111
|
|
N/M
|
|
Income tax expense
(benefit)
|
(19)
|
|
(4)
|
|
N/M
|
|
10
|
|
53
|
|
(82) %
|
|
Net income
(loss)
|
5
|
|
15
|
|
(66) %
|
|
(32)
|
|
58
|
|
N/M
|
|
Less: Net income
attributable to noncontrolling interests, net of tax
|
—
|
|
1
|
|
86 %
|
|
7
|
|
4
|
|
N/M
|
|
Net income (loss)
attributable to UScellular shareholders
|
$
5
|
|
$ 14
|
|
(68) %
|
|
$
(39)
|
|
$ 54
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
85
|
|
85
|
|
—
|
|
86
|
|
85
|
|
1 %
|
|
Basic earnings
(loss) per share attributable to UScellular
shareholders
|
$
0.05
|
|
$ 0.17
|
|
(68) %
|
|
$
(0.46)
|
|
$ 0.64
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
88
|
|
88
|
|
1 %
|
|
86
|
|
87
|
|
(1) %
|
|
Diluted earnings
(loss) per share attributable to UScellular
shareholders
|
$
0.05
|
|
$ 0.16
|
|
(69) %
|
|
$
(0.46)
|
|
$ 0.63
|
|
N/M
|
|
N/M - Percentage change
not meaningful
|
|
|
United States
Cellular Corporation
|
|
Consolidated
Statement of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
Year Ended December
31,
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
(32)
|
|
$
58
|
|
Add (deduct)
adjustments to reconcile net income (loss) to net cash flows from
operating
activities
|
|
|
|
|
Depreciation,
amortization and accretion
|
665
|
|
656
|
|
Bad debts
expense
|
97
|
|
104
|
|
Stock-based
compensation expense
|
55
|
|
23
|
|
Deferred income taxes,
net
|
(27)
|
|
47
|
|
Equity in earnings of
unconsolidated entities
|
(161)
|
|
(158)
|
|
Distributions from
unconsolidated entities
|
169
|
|
150
|
|
Loss on impairment of
licenses
|
136
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
18
|
|
17
|
|
(Gain) loss on license
sales and exchanges, net
|
3
|
|
(2)
|
|
Other operating
activities
|
5
|
|
6
|
|
Changes in assets and
liabilities from operations
|
|
|
|
|
Accounts
receivable
|
(11)
|
|
17
|
|
Equipment installment
plans receivable
|
(37)
|
|
(20)
|
|
Inventory
|
21
|
|
62
|
|
Accounts
payable
|
(19)
|
|
(85)
|
|
Customer deposits and
deferred revenues
|
9
|
|
(9)
|
|
Accrued
taxes
|
(4)
|
|
—
|
|
Other assets and
liabilities
|
(4)
|
|
—
|
|
Net cash provided by
operating activities
|
883
|
|
866
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Cash paid for
additions to property, plant and equipment
|
(537)
|
|
(608)
|
|
Cash paid for
licenses
|
(20)
|
|
(130)
|
|
Other investing
activities
|
1
|
|
17
|
|
Net cash used in
investing activities
|
(556)
|
|
(721)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Issuance of long-term
debt
|
40
|
|
315
|
|
Repayment of long-term
debt
|
(248)
|
|
(453)
|
|
Repayment of
short-term debt
|
—
|
|
(60)
|
|
Common Shares reissued
for stock-based compensation awards, net of tax payments
|
(11)
|
|
(6)
|
|
Repurchase of Common
Shares
|
(54)
|
|
—
|
|
Payment of debt
issuance costs
|
—
|
|
(1)
|
|
Distributions to
noncontrolling interests
|
(5)
|
|
(3)
|
|
Cash paid for software
license agreements
|
(66)
|
|
(66)
|
|
Other financing
activities
|
(3)
|
|
—
|
|
Net cash used in
financing activities
|
(347)
|
|
(274)
|
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
(20)
|
|
(129)
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
179
|
|
308
|
|
End of
period
|
$
159
|
|
$
179
|
|
United States
Cellular Corporation
|
|
Consolidated Balance
Sheet Highlights
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
December
31,
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
144
|
|
$
150
|
|
Accounts receivable,
net
|
955
|
|
957
|
|
Inventory,
net
|
179
|
|
199
|
|
Prepaid
expenses
|
46
|
|
57
|
|
Income taxes
receivable
|
—
|
|
1
|
|
Other current
assets
|
21
|
|
36
|
|
Total current
assets
|
1,345
|
|
1,400
|
|
|
|
|
|
Assets held for
sale
|
—
|
|
15
|
|
|
|
|
|
Licenses
|
4,579
|
|
4,693
|
|
|
|
|
|
Investments in
unconsolidated entities
|
454
|
|
461
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,502
|
|
2,576
|
|
|
|
|
|
Operating lease
right-of-use assets
|
926
|
|
915
|
|
|
|
|
|
Other assets and
deferred charges
|
643
|
|
690
|
|
|
|
|
|
Total
assets
|
$
10,449
|
|
$
10,750
|
|
United States
Cellular Corporation
|
|
Consolidated Balance
Sheet Highlights
|
|
(Unaudited)
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
December
31,
|
2024
|
|
2023
|
|
(Dollars in millions,
except per share amounts)
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current portion of
long-term debt
|
$
22
|
|
$
20
|
|
Accounts
payable
|
242
|
|
248
|
|
Customer deposits and
deferred revenues
|
238
|
|
229
|
|
Accrued
taxes
|
30
|
|
32
|
|
Accrued
compensation
|
93
|
|
83
|
|
Short-term operating
lease liabilities
|
141
|
|
135
|
|
Other current
liabilities
|
118
|
|
154
|
|
Total current
liabilities
|
884
|
|
901
|
|
|
|
|
|
Deferred liabilities
and credits
|
|
|
|
|
Deferred income tax
liability, net
|
728
|
|
755
|
|
Long-term operating
lease liabilities
|
822
|
|
831
|
|
Other deferred
liabilities and credits
|
570
|
|
565
|
|
|
|
|
|
Long-term debt,
net
|
2,837
|
|
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
|
1,783
|
|
1,726
|
|
Treasury
shares
|
(112)
|
|
(80)
|
|
Retained
earnings
|
2,818
|
|
2,892
|
|
Total UScellular
shareholders' equity
|
4,577
|
|
4,626
|
|
|
|
|
|
Noncontrolling
interests
|
15
|
|
16
|
|
|
|
|
|
Total
equity
|
4,592
|
|
4,642
|
|
|
|
|
|
Total liabilities
and equity
|
$
10,449
|
|
$
10,750
|
|
United States
Cellular Corporation
|
|
Segment
Results
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
UScellular
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
$ 944
|
|
$ 975
|
|
(3) %
|
|
$
3,667
|
|
$
3,805
|
|
(4) %
|
|
Towers
|
59
|
|
57
|
|
3 %
|
|
234
|
|
228
|
|
3 %
|
|
Intra-company
eliminations
|
(33)
|
|
(32)
|
|
(3) %
|
|
(131)
|
|
(127)
|
|
(3) %
|
|
Total operating
revenues
|
970
|
|
1,000
|
|
(3) %
|
|
3,770
|
|
3,906
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
971
|
|
975
|
|
—
|
|
3,757
|
|
3,743
|
|
—
|
|
Towers
|
41
|
|
36
|
|
12 %
|
|
156
|
|
151
|
|
3 %
|
|
Intra-company
eliminations
|
(33)
|
|
(32)
|
|
(3) %
|
|
(131)
|
|
(127)
|
|
(3) %
|
|
Total operating
expenses
|
979
|
|
979
|
|
—
|
|
3,782
|
|
3,767
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
(9)
|
|
$
21
|
|
N/M
|
|
$
(12)
|
|
$ 139
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
(Non-GAAP)
|
$ 167
|
|
$ 194
|
|
(14) %
|
|
$ 845
|
|
$ 818
|
|
3 %
|
|
Adjusted EBITDA
(Non-GAAP)
|
$ 208
|
|
$ 233
|
|
(11) %
|
|
$
1,018
|
|
$ 986
|
|
3 %
|
|
Capital
expenditures
|
$ 162
|
|
$ 148
|
|
9 %
|
|
$ 577
|
|
$ 611
|
|
(6) %
|
|
N/M - Percentage change
not meaningful
|
|
|
United States
Cellular Corporation
|
|
Segment
Results
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
UScellular
Wireless
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
service
|
$ 661
|
|
$ 678
|
|
(3) %
|
|
$
2,674
|
|
$
2,742
|
|
(2) %
|
|
Other
|
55
|
|
52
|
|
7 %
|
|
210
|
|
201
|
|
5 %
|
|
Service
revenues
|
716
|
|
730
|
|
(2) %
|
|
2,884
|
|
2,943
|
|
(2) %
|
|
Equipment
sales
|
228
|
|
245
|
|
(7) %
|
|
783
|
|
862
|
|
(9) %
|
|
Total operating
revenues
|
944
|
|
975
|
|
(3) %
|
|
3,667
|
|
3,805
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and accretion
reported below)
|
195
|
|
197
|
|
(1) %
|
|
777
|
|
794
|
|
(2) %
|
|
Cost of equipment
sold
|
276
|
|
280
|
|
(1) %
|
|
906
|
|
988
|
|
(8) %
|
|
Selling, general and
administrative
|
344
|
|
340
|
|
1 %
|
|
1,298
|
|
1,334
|
|
(3) %
|
|
Depreciation,
amortization and accretion
|
153
|
|
155
|
|
—
|
|
620
|
|
610
|
|
1 %
|
|
Loss on impairment of
licenses
|
—
|
|
—
|
|
—
|
|
136
|
|
—
|
|
N/M
|
|
(Gain) loss on asset
disposals, net
|
4
|
|
5
|
|
(37) %
|
|
17
|
|
19
|
|
(11) %
|
|
(Gain) loss on license
sales and exchanges, net
|
(1)
|
|
(2)
|
|
59 %
|
|
3
|
|
(2)
|
|
N/M
|
|
Total operating
expenses
|
971
|
|
975
|
|
—
|
|
3,757
|
|
3,743
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
(27)
|
|
$
—
|
|
N/M
|
|
$
(90)
|
|
$
62
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
(Non-GAAP)
|
$ 137
|
|
$ 164
|
|
(16) %
|
|
$ 719
|
|
$ 697
|
|
3 %
|
|
Adjusted EBITDA
(Non-GAAP)
|
$ 137
|
|
$ 164
|
|
(16) %
|
|
$ 719
|
|
$ 697
|
|
3 %
|
|
Capital
expenditures
|
$ 154
|
|
$ 127
|
|
21 %
|
|
$ 554
|
|
$ 580
|
|
(5) %
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
UScellular
Towers
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
2024
|
|
2023
|
|
2024
vs. 2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-party
revenues
|
$
26
|
|
$
25
|
|
4 %
|
|
$ 103
|
|
$ 101
|
|
2 %
|
|
Intra-company
revenues
|
33
|
|
32
|
|
3 %
|
|
131
|
|
127
|
|
3 %
|
|
Total tower
revenues
|
59
|
|
57
|
|
3 %
|
|
234
|
|
228
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and accretion
reported below)
|
20
|
|
18
|
|
11 %
|
|
78
|
|
73
|
|
6 %
|
|
Selling, general and
administrative
|
9
|
|
9
|
|
2 %
|
|
32
|
|
34
|
|
(5) %
|
|
Depreciation,
amortization and accretion
|
12
|
|
11
|
|
—
|
|
45
|
|
46
|
|
(1) %
|
|
(Gain) loss on asset
disposals, net
|
—
|
|
(2)
|
|
N/M
|
|
1
|
|
(2)
|
|
N/M
|
|
Total operating
expenses
|
41
|
|
36
|
|
12 %
|
|
156
|
|
151
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
18
|
|
$
21
|
|
(11) %
|
|
$
78
|
|
$
77
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
(Non-GAAP)
|
$
30
|
|
$
30
|
|
—
|
|
$ 126
|
|
$ 121
|
|
4 %
|
|
Adjusted EBITDA
(Non-GAAP)
|
$
30
|
|
$
30
|
|
—
|
|
$ 126
|
|
$ 121
|
|
4 %
|
|
Capital
expenditures
|
$
8
|
|
$
21
|
|
(62) %
|
|
$
23
|
|
$
31
|
|
(24) %
|
|
N/M - Percentage change
not meaningful
|
|
|
United States
Cellular Corporation
|
|
Financial
Measures
|
|
(Unaudited)
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
UScellular
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities (GAAP)
|
$
121
|
|
$
148
|
|
$
883
|
|
$
866
|
|
Cash paid for additions
to property, plant and equipment
|
(139)
|
|
(155)
|
|
(537)
|
|
(608)
|
|
Cash paid for software
license agreements
|
(35)
|
|
(37)
|
|
(66)
|
|
(66)
|
|
Free cash flow
(Non-GAAP)1
|
$
(53)
|
|
$
(44)
|
|
$
280
|
|
$
192
|
|
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
Loss on impairment of licenses, including tax impacts. UScellular
believes this measure may be useful to investors and other users of
its financial information to assist in comparing financial results
with periods that were not impacted by impairment
charges.
|
|
|
Three Months
Ended
December
31,
|
|
Year Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to UScellular shareholders
(GAAP)
|
$
5
|
|
$
14
|
|
$
(39)
|
|
$
54
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
licenses
|
—
|
|
—
|
|
136
|
|
—
|
|
Deferred tax benefit
on the tax-amortizable portion of the
impaired licenses
|
—
|
|
—
|
|
(34)
|
|
—
|
|
Subtotal of Non-GAAP
adjustments
|
—
|
|
—
|
|
102
|
|
—
|
|
Net income attributable
to UScellular shareholders excluding
licenses impairment charge (Non-GAAP)
|
$
5
|
|
$
14
|
|
$
63
|
|
$
54
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding used for diluted
earnings (loss) per share attributable to UScellular
shareholders
|
88
|
|
88
|
|
86
|
|
87
|
|
Diluted weighted
average shares outstanding used for diluted
earnings per share attributable to UScellular shareholders
excluding licenses impairment charge
|
88
|
|
88
|
|
88
|
|
87
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to UScellular
shareholders (GAAP)
|
$
0.05
|
|
$
0.16
|
|
$
(0.46)
|
|
$
0.63
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Loss on impairment of
licenses
|
—
|
|
—
|
|
1.55
|
|
—
|
|
Deferred tax benefit
on the tax-amortizable portion of the
impaired licenses
|
—
|
|
—
|
|
(0.38)
|
|
—
|
|
Diluted earnings per
share attributable to UScellular shareholders
excluding licenses impairment charge (Non-GAAP)
|
$
0.05
|
|
$
0.16
|
|
$
0.71
|
|
$
0.63
|
|
United States
Cellular Corporation
|
|
|
EBITDA, Adjusted
EBITDA and Adjusted OIBDA
|
|
|
(Unaudited)
|
|
|
|
|
The following tables
reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the
corresponding GAAP measures, Net income (loss) and Income (loss)
before income taxes. Income and expense items below Operating
income (loss) are not provided at the individual segment level for
Wireless and Towers; therefore, the reconciliations begin with
EBITDA and the most directly comparable GAAP measure is Operating
income (loss) rather than Net income (loss) at the segment
level.
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
UScellular
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
$
5
|
|
$
15
|
|
$
(32)
|
|
$
58
|
|
Add back or
deduct:
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(19)
|
|
(4)
|
|
10
|
|
53
|
|
Income (loss) before
income taxes (GAAP)
|
(14)
|
|
11
|
|
(22)
|
|
111
|
|
Add back:
|
|
|
|
|
|
|
|
|
Interest
expense
|
46
|
|
49
|
|
183
|
|
196
|
|
Depreciation,
amortization and accretion
|
165
|
|
166
|
|
665
|
|
656
|
|
EBITDA
(Non-GAAP)
|
197
|
|
226
|
|
826
|
|
963
|
|
Add back or
deduct:
|
|
|
|
|
|
|
|
|
Expenses related to
strategic alternatives review
|
8
|
|
6
|
|
35
|
|
8
|
|
Loss on impairment of
licenses
|
—
|
|
—
|
|
136
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
4
|
|
3
|
|
18
|
|
17
|
|
(Gain) loss on license
sales and exchanges, net
|
(1)
|
|
(2)
|
|
3
|
|
(2)
|
|
Adjusted EBITDA
(Non-GAAP)
|
208
|
|
233
|
|
1,018
|
|
986
|
|
Deduct:
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
38
|
|
37
|
|
161
|
|
158
|
|
Interest and dividend
income
|
3
|
|
2
|
|
12
|
|
10
|
|
Adjusted OIBDA
(Non-GAAP)
|
$
167
|
|
$
194
|
|
$
845
|
|
$
818
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
UScellular
Wireless
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
$
126
|
|
$
155
|
|
$
530
|
|
$
672
|
|
Add back or
deduct:
|
|
|
|
|
|
|
|
|
Expenses related to
strategic alternatives review
|
8
|
|
6
|
|
33
|
|
8
|
|
Loss on impairment of
licenses
|
—
|
|
—
|
|
136
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
4
|
|
5
|
|
17
|
|
19
|
|
(Gain) loss on license
sales and exchanges, net
|
(1)
|
|
(2)
|
|
3
|
|
(2)
|
|
Adjusted EBITDA and
Adjusted OIBDA (Non-GAAP)
|
137
|
|
164
|
|
719
|
|
697
|
|
Deduct:
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and accretion
|
153
|
|
155
|
|
620
|
|
610
|
|
Expenses related to
strategic alternatives review
|
8
|
|
6
|
|
33
|
|
8
|
|
Loss on impairment of
licenses
|
—
|
|
—
|
|
136
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
4
|
|
5
|
|
17
|
|
19
|
|
(Gain) loss on license
sales and exchanges, net
|
(1)
|
|
(2)
|
|
3
|
|
(2)
|
|
Operating income
(loss) (GAAP)
|
$
(27)
|
|
$
—
|
|
$
(90)
|
|
$
62
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
UScellular
Towers
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
EBITDA
(Non-GAAP)
|
$
30
|
|
$
32
|
|
$
123
|
|
$
123
|
|
Add back or
deduct:
|
|
|
|
|
|
|
|
|
Expenses related to
strategic alternatives review
|
—
|
|
—
|
|
2
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
—
|
|
(2)
|
|
1
|
|
(2)
|
|
Adjusted EBITDA and
Adjusted OIBDA (Non-GAAP)
|
30
|
|
30
|
|
126
|
|
121
|
|
Deduct:
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and accretion
|
12
|
|
11
|
|
45
|
|
46
|
|
Expenses related to
strategic alternatives review
|
—
|
|
—
|
|
2
|
|
—
|
|
(Gain) loss on asset
disposals, net
|
—
|
|
(2)
|
|
1
|
|
(2)
|
|
Operating income
(GAAP)
|
$
18
|
|
$
21
|
|
$
78
|
|
$
77
|
View original
content:https://www.prnewswire.com/news-releases/uscellular-reports-fourth-quarter-and-full-year-2024-results-302381934.html
SOURCE United States Cellular Corporation
