02/08/2024 | Press release | Distributed by Public on 02/08/2024 11:58
2024 Estimated Results | ||
Previous | Current | |
(Dollars in millions) | ||
Service revenues | $2,950-$3,050 | Unchanged |
Adjusted OIBDA1, 2
|
$750-$850 | Unchanged |
Adjusted EBITDA1, 2
|
$920-$1,020 | Unchanged |
Capital expenditures | $550-$650 | Unchanged |
Actual Results | ||||
2024 Estimated Results2
|
Six Months Ended June 30, 2024 |
Year Ended December 31, 2023 |
||
(Dollars in millions) | ||||
Net income (GAAP) | N/A | $42 | $58 | |
Add back: | ||||
Income tax expense | N/A | 41 | 53 | |
Income before income taxes (GAAP) | $60-$160 | $83 | $111 | |
Add back: | ||||
Interest expense | 185 | 91 | 196 | |
Depreciation, amortization and accretion expense | 660 | 329 | 656 | |
EBITDA (Non-GAAP)1
|
$905-$1,005 | $503 | $963 | |
Add back or deduct: | ||||
Expenses related to strategic alternatives review | - | 21 | 8 | |
(Gain) loss on asset disposals, net | 15 | 11 | 17 | |
(Gain) loss on license sales and exchanges, net | - | 7 | (2) | |
Adjusted EBITDA (Non-GAAP)1
|
$920-$1,020 | $542 | $986 | |
Deduct: | ||||
Equity in earnings of unconsolidated entities | 155 | 80 | 158 | |
Interest and dividend income | 15 | 6 | 10 | |
Adjusted OIBDA (Non-GAAP)1
|
$750-$850 | $456 | $818 |
UnitedStates Cellular Corporation
|
||||||||||
Summary Operating Data (Unaudited) | ||||||||||
As of or for the Quarter Ended | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | |||||
Retail Connections | ||||||||||
Postpaid | ||||||||||
Total at end of period1
|
4,027,000 | 4,051,000 | 4,106,000 | 4,159,000 | 4,194,000 | |||||
Gross additions | 117,000 | 106,000 | 129,000 | 128,000 | 125,000 | |||||
Handsets | 73,000 | 63,000 | 80,000 | 84,000 | 83,000 | |||||
Connected devices | 44,000 | 43,000 | 49,000 | 44,000 | 42,000 | |||||
Net additions (losses)1
|
(24,000) | (44,000) | (50,000) | (35,000) | (28,000) | |||||
Handsets | (29,000) | (47,000) | (53,000) | (38,000) | (29,000) | |||||
Connected devices | 5,000 | 3,000 | 3,000 | 3,000 | 1,000 | |||||
ARPU2
|
$ | 51.45 | $ | 51.96 | $ | 51.61 | $ | 51.11 | $ | 50.64 |
ARPA3
|
$ | 130.41 | $ | 132.00 | $ | 131.63 | $ | 130.91 | $ | 130.19 |
Handset upgrade rate4
|
4.1 | % | 4.5 | % | 5.8 | % | 4.5 | % | 4.8 | % |
Churn rate5
|
1.16 | % | 1.22 | % | 1.44 | % | 1.30 | % | 1.21 | % |
Handsets | 0.97 | % | 1.03 | % | 1.22 | % | 1.11 | % | 1.01 | % |
Connected devices | 2.47 | % | 2.52 | % | 3.03 | % | 2.64 | % | 2.65 | % |
Prepaid | ||||||||||
Total at end of period1
|
439,000 | 436,000 | 451,000 | 462,000 | 462,000 | |||||
Gross additions | 50,000 | 41,000 | 43,000 | 52,000 | 50,000 | |||||
Net additions (losses)1
|
3,000 | (13,000) | (11,000) | - | (8,000) | |||||
ARPU2, 6
|
$ | 32.37 | $ | 32.25 | $ | 32.32 | $ | 33.44 | $ | 33.86 |
Churn rate5
|
3.60 | % | 4.06 | % | 3.87 | % | 3.68 | % | 4.18 | % |
Market penetration at end of period | ||||||||||
Consolidated operating population | 32,550,000 | 32,550,000 | 32,350,000 | 32,350,000 | 32,350,000 | |||||
Consolidated operating penetration7
|
15 | % | 14 | % | 15 | % | 15 | % | 15 | % |
Capital expenditures (millions) | $ | 165 | $ | 131 | $ | 148 | $ | 111 | $ | 143 |
Total cell sites in service | 6,990 | 6,995 | 7,000 | 6,973 | 6,952 | |||||
Owned towers | 4,388 | 4,382 | 4,373 | 4,356 | 4,341 |
United States Cellular Corporation | ||||||||||||
Consolidated Statement of Operations Highlights | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
2024 | 2023 |
2024 vs. 2023 |
2024 | 2023 |
2024 vs. 2023 |
|||||||
(Dollars and shares in millions, except per share amounts) | ||||||||||||
Operating revenues | ||||||||||||
Service | $ | 743 | $ | 760 | (2) | % | $ | 1,497 | $ | 1,527 | (2) | % |
Equipment sales | 184 | 197 | (6) | % | 380 | 415 | (9) | % | ||||
Total operating revenues | 927 | 957 | (3) | % | 1,877 | 1,942 | (3) | % | ||||
Operating expenses | ||||||||||||
System operations (excluding Depreciation, amortization and accretion reported below) | 180 | 190 | (5) | % | 362 | 372 | (3) | % | ||||
Cost of equipment sold | 211 | 228 | (7) | % | 427 | 480 | (11) | % | ||||
Selling, general and administrative | 322 | 341 | (5) | % | 653 | 686 | (5) | % | ||||
Depreciation, amortization and accretion | 165 | 161 | 2 | % | 329 | 330 | - | |||||
(Gain) loss on asset disposals, net | 5 | 3 | 49 | % | 11 | 13 | (19) | % | ||||
(Gain) loss on license sales and exchanges, net | 8 | - | N/M | 7 | - | N/M | ||||||
Total operating expenses | 891 | 923 | (3) | % | 1,789 | 1,881 | (5) | % | ||||
Operating income | 36 | 34 | 6 | % | 88 | 61 | 44 | % | ||||
Investment and other income (expense) | ||||||||||||
Equity in earnings of unconsolidated entities | 38 | 38 | 2 | % | 80 | 82 | (2) | % | ||||
Interest and dividend income | 3 | 3 | 18 | % | 6 | 5 | 11 | % | ||||
Interest expense | (45) | (51) | 8 | % | (91) | (99) | 8 | % | ||||
Total investment and other expense | (4) | (10) | 54 | % | (5) | (12) | 61 | % | ||||
Income before income taxes | 32 | 24 | 31 | % | 83 | 49 | 69 | % | ||||
Income tax expense | 14 | 19 | (28) | % | 41 | 29 | 41 | % | ||||
Net income | 18 | 5 | N/M | 42 | 20 | N/M | ||||||
Less: Net income attributable to noncontrolling interests, net of tax | 1 | - | (20) | % | 7 | 2 | N/M | |||||
Net income attributable to UScellular shareholders | $ | 17 | $ | 5 | N/M | $ | 35 | $ | 18 | N/M | ||
Basic weighted average shares outstanding | 86 | 85 | 1 | % | 86 | 85 | 1 | % | ||||
Basic earnings per share attributable to UScellular shareholders | $ | 0.20 | $ | 0.05 | N/M | $ | 0.41 | $ | 0.21 | 99 | % | |
Diluted weighted average shares outstanding | 88 | 86 | 3 | % | 88 | 86 | 2 | % | ||||
Diluted earnings per share attributable to UScellular shareholders | $ | 0.20 | $ | 0.05 | N/M | $ | 0.40 | $ | 0.20 | 95 | % |
United States Cellular Corporation | ||||
Consolidated Statement of Cash Flows | ||||
(Unaudited) | ||||
Six Months Ended June 30, |
||||
2024 | 2023 | |||
(Dollars in millions) | ||||
Cash flows from operating activities | ||||
Net income | $ | 42 | $ | 20 |
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | ||||
Depreciation, amortization and accretion | 329 | 330 | ||
Bad debts expense | 46 | 50 | ||
Stock-based compensation expense | 25 | 6 | ||
Deferred income taxes, net | 11 | 25 | ||
Equity in earnings of unconsolidated entities | (80) | (82) | ||
Distributions from unconsolidated entities | 80 | 78 | ||
(Gain) loss on asset disposals, net | 11 | 13 | ||
(Gain) loss on license sales and exchanges, net | 7 | - | ||
Other operating activities | 3 | 3 | ||
Changes in assets and liabilities from operations | ||||
Accounts receivable | (1) | 35 | ||
Equipment installment plans receivable | 5 | 7 | ||
Inventory | 57 | 52 | ||
Accounts payable | - | (106) | ||
Customer deposits and deferred revenues | 6 | (9) | ||
Accrued taxes | 20 | 1 | ||
Accrued interest | (1) | (1) | ||
Other assets and liabilities | (44) | (32) | ||
Net cash provided by operating activities | 516 | 390 | ||
Cash flows from investing activities | ||||
Cash paid for additions to property, plant and equipment | (270) | (351) | ||
Cash paid for licenses | (15) | (8) | ||
Other investing activities | 1 | 14 | ||
Net cash used in investing activities | (284) | (345) | ||
Cash flows from financing activities | ||||
Issuance of long-term debt | 40 | 115 | ||
Repayment of long-term debt | (198) | (156) | ||
Repayment of short-term debt | - | (60) | ||
Tax payments for stock-based compensation awards | (12) | (6) | ||
Distributions to noncontrolling interests | (3) | (2) | ||
Cash paid for software license agreements | (20) | (19) | ||
Other financing activities | (3) | (1) | ||
Net cash used in financing activities | (196) | (129) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 36 | (84) | ||
Cash, cash equivalents and restricted cash | ||||
Beginning of period | 179 | 308 | ||
End of period | $ | 215 | $ | 224 |
United States CellularCorporation
|
||||
Consolidated Balance Sheet Highlights | ||||
(Unaudited) | ||||
ASSETS | ||||
June 30, 2024 | December 31, 2023 | |||
(Dollars in millions) | ||||
Current assets | ||||
Cash and cash equivalents | $ | 195 | $ | 150 |
Accounts receivable, net | 952 | 957 | ||
Inventory, net | 143 | 199 | ||
Prepaid expenses | 58 | 57 | ||
Income taxes receivable | - | 1 | ||
Other current assets | 26 | 36 | ||
Total current assets | 1,374 | 1,400 | ||
Assets held for sale | - | 15 | ||
Licenses | 4,715 | 4,693 | ||
Investments in unconsolidated entities | 461 | 461 | ||
Property, plant and equipment, net | 2,540 | 2,576 | ||
Operating lease right-of-use assets | 906 | 915 | ||
Other assets and deferred charges | 643 | 690 | ||
Total assets | $ | 10,639 | $ | 10,750 |
United States Cellular Corporation | ||||
Consolidated Balance Sheet Highlights | ||||
(Unaudited) | ||||
LIABILITIES AND EQUITY | ||||
June 30, 2024 | December 31, 2023 | |||
(Dollars in millions, except per share amounts) | ||||
Current liabilities | ||||
Current portion of long-term debt | $ | 20 | $ | 20 |
Accounts payable | 268 | 248 | ||
Customer deposits and deferred revenues | 236 | 229 | ||
Accrued taxes | 41 | 32 | ||
Accrued compensation | 57 | 83 | ||
Short-term operating lease liabilities | 134 | 135 | ||
Other current liabilities | 130 | 154 | ||
Total current liabilities | 886 | 901 | ||
Deferred liabilities and credits | ||||
Deferred income tax liability, net | 765 | 755 | ||
Long-term operating lease liabilities | 822 | 831 | ||
Other deferred liabilities and credits | 573 | 565 | ||
Long-term debt, net | 2,887 | 3,044 | ||
Noncontrollinginterests 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 | 1,752 | 1,726 | ||
Treasury shares | (58) | (80) | ||
Retained earnings | 2,893 | 2,892 | ||
Total UScellular shareholders' equity | 4,675 | 4,626 | ||
Noncontrolling interests | 15 | 16 | ||
Total equity | 4,690 | 4,642 | ||
Total liabilities and equity | $ | 10,639 | $ | 10,750 |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
UScellular | 2024 | 2023 |
2024 vs. 2023 |
2024 | 2023 |
2024 vs. 2023 |
||||||
(Dollars in millions) | ||||||||||||
Operating Revenues | ||||||||||||
Wireless | $ | 902 | $ | 932 | (3) | % | $ | 1,826 | $ | 1,892 | (3) | % |
Towers | 58 | 57 | 3 | % | 116 | 113 | 3 | % | ||||
Intra-company eliminations | (33) | (32) | (4) | % | (65) | (63) | (3) | % | ||||
Total operating revenues | 927 | 957 | (3) | % | 1,877 | 1,942 | (3) | % | ||||
Operating expenses | ||||||||||||
Wireless | 885 | 916 | (3) | % | 1,779 | 1,868 | (5) | % | ||||
Towers | 39 | 39 | 1 | % | 75 | 76 | (1) | % | ||||
Intra-company eliminations | (33) | (32) | (4) | % | (65) | (63) | (3) | % | ||||
Total operating expenses | 891 | 923 | (3) | % | 1,789 | 1,881 | (5) | % | ||||
Operating income | $ | 36 | $ | 34 | 6 | % | $ | 88 | $ | 61 | 44 | % |
Adjusted OIBDA (Non-GAAP) | $ | 227 | $ | 198 | 14 | % | $ | 456 | $ | 404 | 13 | % |
Adjusted EBITDA (Non-GAAP) | $ | 268 | $ | 239 | 13 | % | $ | 542 | $ | 491 | 10 | % |
Capital expenditures | $ | 165 | $ | 143 | 15 | % | $ | 295 | $ | 351 | (16) | % |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
UScellular Wireless | 2024 | 2023 |
2024 vs. 2023 |
2024 | 2023 |
2024 vs. 2023 |
||||||
(Dollars in millions) | ||||||||||||
Retail service | $ | 666 | $ | 686 | (3) | % | $ | 1,344 | $ | 1,378 | (2) | % |
Other | 52 | 49 | 7 | % | 102 | 99 | 3 | % | ||||
Service revenues | 718 | 735 | (2) | % | 1,446 | 1,477 | (2) | % | ||||
Equipment sales | 184 | 197 | (6) | % | 380 | 415 | (9) | % | ||||
Total operating revenues | 902 | 932 | (3) | % | 1,826 | 1,892 | (3) | % | ||||
System operations (excluding Depreciation, amortization and accretion reported below) | 194 | 203 | (4) | % | 390 | 398 | (2) | % | ||||
Cost of equipment sold | 211 | 228 | (7) | % | 427 | 480 | (11) | % | ||||
Selling, general and administrative | 313 | 333 | (6) | % | 637 | 670 | (5) | % | ||||
Depreciation, amortization and accretion | 154 | 149 | 3 | % | 308 | 307 | - | |||||
(Gain) loss on asset disposals, net | 5 | 3 | 40 | % | 10 | 13 | (23) | % | ||||
(Gain) loss on license sales and exchanges, net | 8 | - | N/M | 7 | - | N/M | ||||||
Total operating expenses | 885 | 916 | (3) | % | 1,779 | 1,868 | (5) | % | ||||
Operating income | $ | 17 | $ | 16 | 5 | % | $ | 47 | $ | 24 | 97 | % |
Adjusted OIBDA (Non-GAAP) | $ | 196 | $ | 168 | 16 | % | $ | 392 | $ | 344 | 14 | % |
Adjusted EBITDA (Non-GAAP) | $ | 196 | $ | 168 | 16 | % | $ | 392 | $ | 344 | 14 | % |
Capital expenditures | $ | 160 | $ | 140 | 13 | % | $ | 286 | $ | 346 | (17) | % |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
UScellular Towers | 2024 | 2023 |
2024 vs. 2023 |
2024 | 2023 |
2024 vs. 2023 |
||||||
(Dollars in millions) | ||||||||||||
Third-party revenues | $ | 25 | $ | 25 | 1 | % | $ | 51 | $ | 50 | 2 | % |
Intra-company revenues | 33 | 32 | 4 | % | 65 | 63 | 3 | % | ||||
Total tower revenues | 58 | 57 | 3 | % | 116 | 113 | 3 | % | ||||
System operations (excluding Depreciation, amortization and accretion reported below) | 19 | 19 | (1) | % | 37 | 37 | 1 | % | ||||
Selling, general and administrative | 9 | 8 | 8 | % | 16 | 16 | (3) | % | ||||
Depreciation, amortization and accretion | 11 | 12 | (5) | % | 21 | 23 | (5) | % | ||||
(Gain) loss on asset disposals, net | - | - | N/M | 1 | - | N/M | ||||||
Total operating expenses | 39 | 39 | 1 | % | 75 | 76 | (1) | % | ||||
Operating income | $ | 19 | $ | 18 | 7 | % | $ | 41 | $ | 37 | 10 | % |
Adjusted OIBDA (Non-GAAP) | $ | 31 | $ | 30 | 6 | % | $ | 64 | $ | 60 | 7 | % |
Adjusted EBITDA (Non-GAAP) | $ | 31 | $ | 30 | 6 | % | $ | 64 | $ | 60 | 7 | % |
Capital expenditures | $ | 5 | $ | 3 | N/M | $ | 9 | $ | 5 | 89 | % |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
UScellular | 2024 | 2023 | 2024 | 2023 | ||||
(Dollars in millions) | ||||||||
Cash flows from operating activities (GAAP) | $ | 313 | $ | 349 | $ | 516 | $ | 390 |
Cash paid for additions to property, plant and equipment | (137) | (155) | (270) | (351) | ||||
Cash paid for software license agreements | (11) | (12) | (20) | (19) | ||||
Free cash flow (Non-GAAP)1
|
$ | 165 | $ | 182 | $ | 226 | $ | 20 |
Three Months Ended June 30, |
||||
UScellular | 2024 | 2023 | ||
(Dollars in millions) | ||||
Net income (GAAP) | $ | 18 | $ | 5 |
Add back: | ||||
Income tax expense | 14 | 19 | ||
Income before income taxes (GAAP) | 32 | 24 | ||
Add back: | ||||
Interest expense | 45 | 51 | ||
Depreciation, amortization and accretion | 165 | 161 | ||
EBITDA (Non-GAAP) | 242 | 236 | ||
Add back or deduct: | ||||
Expenses related to strategic alternatives review | 13 | - | ||
(Gain) loss on asset disposals, net | 5 | 3 | ||
(Gain) loss on license sales and exchanges, net | 8 | - | ||
Adjusted EBITDA (Non-GAAP) | 268 | 239 | ||
Deduct: | ||||
Equity in earnings of unconsolidated entities | 38 | 38 | ||
Interest and dividend income | 3 | 3 | ||
Adjusted OIBDA (Non-GAAP) | $ | 227 | $ | 198 |
Three Months Ended June 30, |
||||
UScellular Wireless | 2024 | 2023 | ||
(Dollars in millions) | ||||
EBITDA (Non-GAAP) | $ | 171 | $ | 165 |
Add back or deduct: | ||||
Expenses related to strategic alternatives review | 12 | - | ||
(Gain) loss on asset disposals, net | 5 | 3 | ||
(Gain) loss on license sales and exchanges, net | 8 | - | ||
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) | 196 | 168 | ||
Deduct: | ||||
Depreciation, amortization and accretion | 154 | 149 | ||
Expenses related to strategic alternatives review | 12 | - | ||
(Gain) loss on asset disposals, net | 5 | 3 | ||
(Gain) loss on license sales and exchanges, net | 8 | - | ||
Operating income (GAAP) | $ | 17 | $ | 16 |
Three Months Ended June 30, |
||||
UScellular Towers | 2024 | 2023 | ||
(Dollars in millions) | ||||
EBITDA (Non-GAAP) | $ | 30 | $ | 30 |
Add back or deduct: | ||||
Expenses related to strategic alternatives review | 1 | - | ||
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) | 31 | 30 | ||
Deduct: | ||||
Depreciation, amortization and accretion | 11 | 12 | ||
Expenses related to strategic alternatives review | 1 | - | ||
Operating income (GAAP) | $ | 19 | $ | 18 |