CHICAGO, Oct. 30, 2015 /PRNewswire/ -- United States Cellular Corporation (NYSE:USM) reported total operating revenues of $1,068.9 million for the third quarter of 2015, versus $1,000.4 million for the same period one year ago. Net income (loss) attributable to U.S. Cellular shareholders and related diluted earnings per share were $63.6 million and $0.75, respectively, for the third quarter of 2015, compared to $(22.2) million and $(0.26), respectively, in the comparable period one year ago.
Effective September 1, 2015, U.S. Cellular discontinued it loyalty rewards program. All unredeemed rewards points expired and the deferred revenue related to the expired points was recognized as $58.2 million in service revenues in the quarter.
"This quarter we completed our 4G LTE network rollout. This was one of our major priorities for the year. It allows our customers, even in our very rural areas, to receive the benefits of our data services. The results of this customer focus manifests itself in high customer loyalty and lower churn," said Kenneth R. Meyers, U.S. Cellular president and CEO. "We also continued to manage our expense levels, which contributed to the growth in operating cash flow.
"As we move into the holiday sales season, we plan to grow our customer base and increase revenue through our competitive pricing and promotions, that showcase our high-quality 4G network."
2015 Estimated Results
U.S. Cellular's estimates of full-year 2015 results are shown below. Such estimates represent management's view as of October 30, 2015. Such forward-looking statements should not be assumed to be current as of any future date. U.S. Cellular undertakes no duty to update such information, whether as a result of new information, future events or otherwise. There can be no assurance that final results will not differ materially from such estimated results.
|
|
2015 Estimated Results
|
|
|
Current
|
|
Previous
|
|
(Dollars in millions)
|
|
|
|
|
|
Total operating revenues
|
Approx. $
|
4,000
|
|
$4,000-$4,100
|
|
Operating cash flow (1)
|
$540-$620
|
|
$440-$540
|
|
Adjusted EBITDA (1)
|
$710-$790
|
|
$600-$700
|
|
Capital expenditures
|
Approx. $
|
600
|
|
Unchanged
|
The following tables provide a reconciliation to Operating Cash Flow and Adjusted EBITDA for 2015 estimated results, actual results for the nine months ended September 30, 2015 and 2014 actual results:
|
|
|
|
|
|
|
Actual Results
|
|
|
|
|
2015 Estimated
Results (2)
|
|
|
Nine Months Ended September 30, 2015
|
|
|
Year Ended
December 31, 2014
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (GAAP)
|
|
|
N/A
|
|
$
|
250
|
|
$
|
(47)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
N/A
|
|
|
161
|
|
|
(12)
|
|
Income (loss) before income taxes
(GAAP)
|
|
$
|
275-355
|
|
$
|
411
|
|
$
|
(59)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
80
|
|
|
61
|
|
|
57
|
|
Depreciation, amortization and accretion expense
|
|
|
600
|
|
|
450
|
|
|
606
|
|
EBITDA
|
|
$
|
955-1,035
|
|
$
|
922
|
|
$
|
605
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of business and other exit costs, net
|
|
|
(115)
|
|
|
(114)
|
|
|
(33)
|
|
(Gain) loss on license sales and exchanges, net
|
|
|
(145)
|
|
|
(147)
|
|
|
(113)
|
|
(Gain) loss on assets disposals, net
|
|
|
15
|
|
|
12
|
|
|
21
|
|
Adjusted EBITDA
|
|
$
|
710-790
|
|
$
|
674
|
|
$
|
480
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
|
|
(135)
|
|
|
(110)
|
|
|
(130)
|
|
Interest and dividend income
|
|
|
(35)
|
|
|
(26)
|
|
|
(12)
|
|
Operating cash flow (3)
|
|
$
|
540-620
|
|
$
|
538
|
|
$
|
338
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not foot due to rounding differences.
|
|
|
|
(1)
|
Operating cash flow is defined as net income, adjusted for the items set forth in the reconciliation below. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation below. Operating cash flow and Adjusted EBITDA exclude these items in order to show operating results on a more comparable basis from period to period. From time to time, U.S. Cellular may exclude other items from Operating cash flow and/or Adjusted EBITDA if such items help reflect operating results on a more comparable basis. U.S. Cellular does not intend to imply that any such items that are excluded are non-recurring, infrequent or unusual; such items may occur in the future. Operating cash flow and Adjusted EBITDA 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 as indicators of the company's operating performance or as alternatives to cash flows from operating activities, determined in accordance with GAAP, as indicators of cash flows or as measures of liquidity. U.S. Cellular believes Operating cash flow and Adjusted EBITDA are useful measures of U.S. Cellular's operating results before significant recurring non-cash charges, gains and losses, and other items as indicated above.
|
|
|
|
(2)
|
In providing 2015 Estimated Results, U.S. Cellular has not completed the above reconciliation to net income because it does not provide guidance for income taxes. U.S. Cellular believes that the impact of income taxes cannot be reasonably predicted; therefore, the company is unable to provide such guidance. Accordingly, a reconciliation to net income is not available without unreasonable effort.
|
|
|
|
(3)
|
A reconciliation of Operating cash flow (Non-GAAP) to Operating income (GAAP) for September 30, 2015 actual results can be found on the company's website at investors.uscellular.com.
|
Conference Call Information
U.S. Cellular will hold a conference call on October 30, 2015 at 9:30 a.m. Central Time.
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 U.S. Cellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to 4.8 million customers in 23 states. The Chicago-based company had 6,400 full- and part-time associates as of September 30, 2015. At the end of the third quarter of 2015, Telephone and Data Systems, Inc. owned 84 percent of U.S. Cellular. For more information about U.S. Cellular, 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: impacts of any pending acquisitions/divestitures/exchanges of properties and/or licenses, including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transactions and the financial impacts of such transactions; the ability of the company to successfully manage and grow its markets; the overall economy; competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; pending and future litigation; changes in income tax rates, laws, regulations or rulings; changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of wireless devices, or the mix of products and services offered by U.S. Cellular. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by U.S. Cellular to furnish this press release to the Securities and Exchange Commission ("SEC"), which are incorporated by reference herein.
For more information about U.S. Cellular, visit:
U.S. Cellular: www.uscellular.com
|
United States Cellular Corporation
|
|
Summary Operating Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the Quarter Ended
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
12/31/2014
|
|
9/30/2014
|
|
Retail Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at end of period
|
|
4,341,000
|
|
|
4,324,000
|
|
|
4,307,000
|
|
|
4,298,000
|
|
|
4,200,000
|
|
|
Gross additions
|
|
200,000
|
|
|
191,000
|
|
|
200,000
|
|
|
302,000
|
|
|
251,000
|
|
|
Net additions (losses)
|
|
17,000
|
|
|
17,000
|
|
|
9,000
|
|
|
98,000
|
|
|
52,000
|
|
|
ARPU (1)
|
$
|
58.12
|
|
$
|
53.62
|
|
$
|
54.87
|
|
$
|
56.51
|
|
$
|
56.37
|
|
|
ARPA (2)
|
$
|
147.00
|
|
$
|
133.85
|
|
$
|
134.94
|
|
$
|
136.13
|
|
$
|
132.99
|
|
|
Churn rate (3)
|
|
1.4%
|
|
|
1.3%
|
|
|
1.5%
|
|
|
1.6%
|
|
|
1.6%
|
|
|
Smartphone penetration (4)
|
|
72%
|
|
|
69%
|
|
|
67%
|
|
|
65%
|
|
|
62%
|
|
Prepaid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at end of period
|
|
380,000
|
|
|
368,000
|
|
|
360,000
|
|
|
348,000
|
|
|
350,000
|
|
|
Gross additions
|
|
71,000
|
|
|
65,000
|
|
|
73,000
|
|
|
60,000
|
|
|
64,000
|
|
|
Net additions (losses)
|
|
12,000
|
|
|
8,000
|
|
|
12,000
|
|
|
(2,000)
|
|
|
(2,000)
|
|
|
ARPU (1)
|
$
|
35.64
|
|
$
|
35.98
|
|
$
|
35.72
|
|
$
|
35.33
|
|
$
|
34.40
|
|
|
Churn rate (3)
|
|
5.2%
|
|
|
5.2%
|
|
|
5.8%
|
|
|
5.9%
|
|
|
6.3%
|
|
Total customers at end of period
|
|
4,807,000
|
|
|
4,779,000
|
|
|
4,775,000
|
|
|
4,760,000
|
|
|
4,674,000
|
|
Billed ARPU (1)
|
$
|
55.42
|
|
$
|
51.29
|
|
$
|
52.29
|
|
$
|
53.63
|
|
$
|
53.24
|
|
Service revenue ARPU (1)
|
$
|
62.31
|
|
$
|
57.55
|
|
$
|
58.01
|
|
$
|
60.10
|
|
$
|
60.92
|
|
Smartphones sold as a percent of total handsets sold
|
|
87%
|
|
|
87%
|
|
|
86%
|
|
|
87%
|
|
|
81%
|
|
Total population
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated markets (5) (8)
|
|
50,313,000
|
|
|
52,809,000
|
|
|
52,822,000
|
|
|
58,840,000
|
|
|
60,136,000
|
|
|
Consolidated operating markets (5)
|
|
31,814,000
|
|
|
31,814,000
|
|
|
31,814,000
|
|
|
31,729,000
|
|
|
31,729,000
|
|
Market penetration at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated markets (6)
|
|
10%
|
|
|
9%
|
|
|
9%
|
|
|
8%
|
|
|
8%
|
|
|
Consolidated operating markets (6)
|
|
15%
|
|
|
15%
|
|
|
15%
|
|
|
15%
|
|
|
15%
|
|
Capital expenditures (000s)
|
$
|
134,816
|
|
$
|
133,666
|
|
$
|
66,460
|
|
$
|
181,655
|
|
$
|
142,452
|
|
Total cell sites in service
|
|
6,246
|
|
|
6,223
|
|
|
6,219
|
|
|
6,220
|
|
|
6,209
|
|
Owned towers (7)
|
|
3,957
|
|
|
3,940
|
|
|
3,936
|
|
|
4,280
|
|
|
4,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average Revenue Per User ("ARPU") metrics are calculated by dividing a revenue base by an average number of customers by the number of months in the period. These revenue bases and customer populations are shown below:
|
|
|
|
a.
|
Postpaid ARPU consists of total postpaid service revenues and postpaid customers.
|
|
|
|
b.
|
Prepaid ARPU consists of total prepaid service revenues and prepaid customers.
|
|
|
|
c.
|
Billed ARPU consists of total postpaid, prepaid and reseller service revenues and postpaid, prepaid and reseller customers.
|
|
|
|
d.
|
Service revenue ARPU consists of total postpaid, prepaid and reseller service revenues, inbound roaming and other service revenues and postpaid, prepaid and reseller customers.
|
|
(2)
|
Average Revenue Per Account ("ARPA") metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts by the number of months in the period.
|
|
(3)
|
Churn metrics represent the percentage of the postpaid or prepaid customers that disconnect service each month. These metrics represent the average monthly postpaid or prepaid churn rate for each respective period.
|
|
(4)
|
Smartphones represent wireless devices which run on an Android, Apple, BlackBerry or Windows Mobile operating system, excluding connected devices. Smartphone penetration is calculated by dividing postpaid smartphone customers by total postpaid handset customers.
|
|
(5)
|
During the third quarter of 2015 U.S. Cellular reassessed population statistics with respect to markets which U.S. Cellular consolidates and revised its calculations to more accurately accumulate such population statistics. As a result, prior period population data and corresponding market penetration ratios were revised for markets that U.S. Cellular currently consolidates, or previously consolidated in the periods presented. The decrease in the population of Consolidated markets is due primarily to the license exchange transactions of certain non-operating licenses in North Carolina in December 2014 and Illinois and Indiana in March 2015. Total Population is used only to calculate market penetration of consolidated markets and consolidated operating markets, respectively. See footnote (6) below.
|
|
(6)
|
Market penetration is calculated by dividing the number of wireless customers at the end of the period by the total population of consolidated markets and consolidated operating markets, respectively, as estimated by Claritas.
|
|
(7)
|
During the quarters ended March 31, 2015 and December 31, 2014, U.S. Cellular sold 359 and 236 towers, respectively, in divested markets.
|
|
(8)
|
As licenses awarded in Auction 97 have not yet been granted, population statistics related to such licenses have not been included in population data.
|
|
United States Cellular Corporation
|
|
Consolidated Statement of Operations Highlights
|
|
Three Months Ended September 30,
|
|
(Unaudited, dollars and shares in thousands, except per share amounts)
|
|
|
|
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Amount
|
|
Percent
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$
|
895,960
|
|
$
|
851,063
|
|
$
|
44,897
|
|
5%
|
|
Equipment sales
|
|
172,946
|
|
|
149,356
|
|
|
23,590
|
|
16%
|
|
|
Total operating revenues
|
|
1,068,906
|
|
|
1,000,419
|
|
|
68,487
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
System operations (excluding Depreciation, amortization and accretion reported below)
|
|
198,982
|
|
|
199,750
|
|
|
(768)
|
|
-
|
|
Cost of equipment sold
|
|
287,256
|
|
|
307,862
|
|
|
(20,606)
|
|
(7)%
|
|
Selling, general and administrative
|
|
374,585
|
|
|
397,545
|
|
|
(22,960)
|
|
(6)%
|
|
Depreciation, amortization and accretion
|
|
152,369
|
|
|
148,952
|
|
|
3,417
|
|
2%
|
|
(Gain) loss on asset disposals, net
|
|
2,618
|
|
|
7,947
|
|
|
(5,329)
|
|
(67)%
|
|
(Gain) loss on sale of business and other exit costs, net
|
|
(643)
|
|
|
(10,283)
|
|
|
9,640
|
|
94%
|
|
(Gain) loss on license sales and exchanges, net
|
|
(23,986)
|
|
|
–
|
|
|
(23,986)
|
|
|
|
|
Total operating expenses
|
|
991,181
|
|
|
1,051,773
|
|
|
(60,592)
|
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
77,725
|
|
|
(51,354)
|
|
|
129,079
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
|
39,674
|
|
|
35,971
|
|
|
3,703
|
|
10%
|
|
Interest and dividend income
|
|
9,299
|
|
|
3,572
|
|
|
5,727
|
|
>100%
|
|
Interest expense
|
|
(21,121)
|
|
|
(13,514)
|
|
|
(7,607)
|
|
(56)%
|
|
Other, net
|
|
78
|
|
|
95
|
|
|
(17)
|
|
(18)%
|
|
|
Total investment and other income
|
|
27,930
|
|
|
26,124
|
|
|
1,806
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
105,655
|
|
|
(25,230)
|
|
|
130,885
|
|
>100%
|
|
Income tax expense (benefit)
|
|
40,634
|
|
|
(1,459)
|
|
|
42,093
|
|
>100%
|
|
Net income (loss)
|
|
65,021
|
|
|
(23,771)
|
|
|
88,792
|
|
>100%
|
|
Less: Net income (loss) attributable to noncontrolling interests, net of tax
|
|
1,427
|
|
|
(1,606)
|
|
|
3,033
|
|
>100%
|
|
Net income (loss) attributable to U.S. Cellular shareholders
|
$
|
63,594
|
|
$
|
(22,165)
|
|
$
|
85,759
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
84,333
|
|
|
84,233
|
|
|
100
|
|
-
|
|
Basic earnings (loss) per share attributable to U.S. Cellular shareholders
|
$
|
0.75
|
|
$
|
(0.26)
|
|
$
|
1.02
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
84,947
|
|
|
84,233
|
|
|
714
|
|
1%
|
|
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders
|
$
|
0.75
|
|
$
|
(0.26)
|
|
$
|
1.01
|
|
>100%
|
|
United States Cellular Corporation
|
|
Consolidated Statement of Operations Highlights
|
|
Nine Months Ended September 30,
|
|
(Unaudited, dollars and shares in thousands, except per share amounts)
|
|
|
|
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Amount
|
|
Percent
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$
|
2,548,544
|
|
$
|
2,548,149
|
|
$
|
395
|
|
-
|
|
Equipment sales
|
|
461,274
|
|
|
335,854
|
|
|
125,420
|
|
37%
|
|
|
Total operating revenues
|
|
3,009,818
|
|
|
2,884,003
|
|
|
125,815
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
System operations (excluding Depreciation, amortization and accretion reported below)
|
|
585,935
|
|
|
567,488
|
|
|
18,447
|
|
3%
|
|
Cost of equipment sold
|
|
779,228
|
|
|
850,314
|
|
|
(71,086)
|
|
(8)%
|
|
Selling, general and administrative
|
|
1,106,524
|
|
|
1,197,361
|
|
|
(90,837)
|
|
(8)%
|
|
Depreciation, amortization and accretion
|
|
450,035
|
|
|
465,042
|
|
|
(15,007)
|
|
(3)%
|
|
(Gain) loss on asset disposals, net
|
|
12,268
|
|
|
16,774
|
|
|
(4,506)
|
|
(27)%
|
|
(Gain) loss on sale of business and other exit costs, net
|
|
(113,825)
|
|
|
(27,694)
|
|
|
(86,131)
|
|
>(100)%
|
|
(Gain) loss on license sales and exchanges, net
|
|
(146,884)
|
|
|
(91,446)
|
|
|
(55,438)
|
|
(61)%
|
|
|
Total operating expenses
|
|
2,673,281
|
|
|
2,977,839
|
|
|
(304,558)
|
|
(10)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
336,537
|
|
|
(93,836)
|
|
|
430,373
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
|
109,729
|
|
|
106,166
|
|
|
3,563
|
|
3%
|
|
Interest and dividend income
|
|
25,834
|
|
|
6,029
|
|
|
19,805
|
|
>100%
|
|
Interest expense
|
|
(61,239)
|
|
|
(42,712)
|
|
|
(18,527)
|
|
(43)%
|
|
Other, net
|
|
274
|
|
|
281
|
|
|
(7)
|
|
(2)%
|
|
|
Total investment and other income
|
|
74,598
|
|
|
69,764
|
|
|
4,834
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
411,135
|
|
|
(24,072)
|
|
|
435,207
|
|
>100%
|
|
Income tax expense
|
|
161,214
|
|
|
746
|
|
|
160,468
|
|
>100%
|
|
Net income (loss)
|
|
249,921
|
|
|
(24,818)
|
|
|
274,739
|
|
>100%
|
|
Less: Net income (loss) attributable to noncontrolling interests, net of tax
|
|
6,911
|
|
|
(3,346)
|
|
|
10,257
|
|
>100%
|
|
Net income (loss) attributable to U.S. Cellular shareholders
|
$
|
243,010
|
|
$
|
(21,472)
|
|
$
|
264,482
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
84,224
|
|
|
84,262
|
|
|
(38)
|
|
-
|
|
Basic earnings (loss) per share attributable to U.S. Cellular shareholders
|
$
|
2.89
|
|
$
|
(0.25)
|
|
$
|
3.14
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
84,869
|
|
|
84,262
|
|
|
607
|
|
1%
|
|
Diluted earnings (loss) per share attributable to U.S. Cellular shareholders
|
$
|
2.86
|
|
$
|
(0.25)
|
|
$
|
3.11
|
|
>100%
|
|
United States Cellular Corporation
|
|
Consolidated Balance Sheet Highlights
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
596,766
|
|
$
|
211,513
|
|
Accounts receivable from customers and others, net
|
|
628,796
|
|
|
556,958
|
|
Inventory, net
|
|
176,259
|
|
|
267,068
|
|
Prepaid expenses
|
|
88,041
|
|
|
59,744
|
|
Net deferred income tax asset
|
|
82,719
|
|
|
93,058
|
|
Other current assets
|
|
18,730
|
|
|
90,834
|
|
|
|
1,591,311
|
|
|
1,279,175
|
|
|
|
|
|
|
|
|
Assets held for sale
|
|
–
|
|
|
107,055
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
Licenses
|
|
1,834,061
|
|
|
1,443,438
|
|
Goodwill
|
|
369,596
|
|
|
370,151
|
|
Investments in unconsolidated entities
|
|
347,710
|
|
|
283,014
|
|
|
|
2,551,367
|
|
|
2,096,603
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
In service and under construction
|
|
7,511,997
|
|
|
7,458,740
|
|
Less: Accumulated depreciation
|
|
4,903,559
|
|
|
4,730,523
|
|
|
|
2,608,438
|
|
|
2,728,217
|
|
|
|
|
|
|
|
|
Other assets and deferred charges
|
|
187,268
|
|
|
276,218
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
6,938,384
|
|
$
|
6,487,268
|
|
United States Cellular Corporation
|
|
Consolidated Balance Sheet Highlights
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
Current liabilities
|
|
|
|
|
|
|
Current portion of long-term debt
|
$
|
8,501
|
|
$
|
46
|
|
Accounts payable
|
|
|
|
|
|
|
|
Affiliated
|
|
7,874
|
|
|
9,774
|
|
|
Trade
|
|
362,268
|
|
|
306,845
|
|
Customer deposits and deferred revenues
|
|
236,568
|
|
|
287,562
|
|
Accrued taxes
|
|
121,177
|
|
|
36,652
|
|
Accrued compensation
|
|
57,547
|
|
|
66,162
|
|
Other current liabilities
|
|
92,617
|
|
|
149,853
|
|
|
|
|
886,552
|
|
|
856,894
|
|
|
|
|
|
|
|
|
|
Liabilities held for sale
|
|
–
|
|
|
20,934
|
|
|
|
|
|
|
|
|
|
Deferred liabilities and credits
|
|
|
|
|
|
|
Net deferred income tax liability
|
|
828,563
|
|
|
859,867
|
|
Other deferred liabilities and credits
|
|
287,873
|
|
|
284,002
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
1,368,656
|
|
|
1,151,819
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests with redemption features
|
|
910
|
|
|
1,150
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
U.S. Cellular shareholders' equity
|
|
|
|
|
|
|
Series A Common and Common Shares, par value $1 per share
|
|
88,074
|
|
|
88,074
|
|
Additional paid-in capital
|
|
1,490,651
|
|
|
1,472,558
|
|
Treasury shares
|
|
(159,705)
|
|
|
(169,139)
|
|
Retained earnings
|
|
2,135,145
|
|
|
1,910,498
|
|
|
Total U.S. Cellular shareholders' equity
|
|
3,554,165
|
|
|
3,301,991
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
11,665
|
|
|
10,611
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
3,565,830
|
|
|
3,312,602
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
$
|
6,938,384
|
|
$
|
6,487,268
|
|
United States Cellular Corporation
|
|
Consolidated Statement of Cash Flows
|
|
Nine Months Ended September 30,
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income (loss)
|
$
|
249,921
|
|
$
|
(24,818)
|
|
Add (deduct) adjustments to reconcile net income to cash flows from operating activities
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
450,035
|
|
|
465,042
|
|
|
|
Bad debts expense
|
|
78,370
|
|
|
74,357
|
|
|
|
Stock-based compensation expense
|
|
18,161
|
|
|
16,502
|
|
|
|
Deferred income taxes, net
|
|
(20,075)
|
|
|
(14,124)
|
|
|
|
Equity in earnings of unconsolidated entities
|
|
(109,729)
|
|
|
(106,166)
|
|
|
|
Distributions from unconsolidated entities
|
|
45,035
|
|
|
74,853
|
|
|
|
(Gain) loss on asset disposals, net
|
|
12,268
|
|
|
16,774
|
|
|
|
(Gain) loss on sale of business and other exit costs, net
|
|
(113,825)
|
|
|
(27,694)
|
|
|
|
(Gain) loss on license sales and exchanges, net
|
|
(146,884)
|
|
|
(91,446)
|
|
|
|
Noncash interest expense
|
|
1,206
|
|
|
845
|
|
|
|
Other operating activities
|
|
(391)
|
|
|
66
|
|
Changes in assets and liabilities from operations
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(54,437)
|
|
|
73,741
|
|
|
|
Equipment installment plans receivable
|
|
(95,799)
|
|
|
(131,520)
|
|
|
|
Inventory
|
|
90,811
|
|
|
53,367
|
|
|
|
Accounts payable
|
|
116,740
|
|
|
21,677
|
|
|
|
Customer deposits and deferred revenues
|
|
(51,026)
|
|
|
28,486
|
|
|
|
Accrued taxes
|
|
161,237
|
|
|
(18,453)
|
|
|
|
Accrued interest
|
|
10,814
|
|
|
9,140
|
|
|
|
Other assets and liabilities
|
|
(86,977)
|
|
|
(89,998)
|
|
|
|
|
|
555,455
|
|
|
330,631
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Cash used for additions to property, plant and equipment
|
|
(406,596)
|
|
|
(424,774)
|
|
Cash paid for acquisitions and licenses
|
|
(285,656)
|
|
|
(37,978)
|
|
Cash received from divestitures and exchanges
|
|
314,352
|
|
|
143,801
|
|
Cash received for investments
|
|
–
|
|
|
10,000
|
|
Other investing activities
|
|
990
|
|
|
804
|
|
|
|
|
|
(376,910)
|
|
|
(308,147)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Issuance of long-term debt
|
|
225,000
|
|
|
–
|
|
Common shares reissued for benefit plans, net of tax payments
|
|
(868)
|
|
|
1,150
|
|
Common shares repurchased
|
|
(4,070)
|
|
|
(14,698)
|
|
Payment of debt issuance costs
|
|
(3,080)
|
|
|
(448)
|
|
Acquisition of towers in common control transaction
|
|
(2,437)
|
|
|
(76,298)
|
|
Distributions to noncontrolling interests
|
|
(6,097)
|
|
|
(439)
|
|
Other financing activities
|
|
(1,740)
|
|
|
(18)
|
|
|
|
|
|
206,708
|
|
|
(90,751)
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
385,253
|
|
|
(68,267)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
Beginning of period
|
|
211,513
|
|
|
342,065
|
|
End of period
|
$
|
596,766
|
|
$
|
273,798
|
|
United States Cellular Corporation
|
|
Financial Measures and Reconciliations
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
131,486
|
|
$
|
117,771
|
|
$
|
555,455
|
|
$
|
330,631
|
|
Add: Sprint Cost Reimbursement
|
|
|
4,422
|
|
|
17,896
|
|
|
27,596
|
|
|
52,012
|
|
Less: Cash used for additions to property, plant and equipment
|
|
|
147,361
|
|
|
162,377
|
|
|
406,596
|
|
|
424,774
|
|
Adjusted free cash flow (1)
|
|
$
|
(11,453)
|
|
$
|
(26,710)
|
|
$
|
176,455
|
|
$
|
(42,131)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted free cash flow is defined as Cash flows from operating activities (which includes cash outflows related to the Sprint decommissioning), as adjusted for cash proceeds from the Sprint Cost Reimbursement (which are included in Cash flows from investing activities in the Consolidated Statement of Cash Flows), less Cash used for additions to property, plant and equipment. Sprint decommissioning and Sprint Cost Reimbursement are further defined and discussed in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015. Adjusted free cash flow is a non-GAAP financial measure which U.S. Cellular believes may be useful to investors and other users of its financial information in evaluating the amount of cash generated by business operations (including cash proceeds from the Sprint Cost Reimbursement), after Cash used for additions to property, plant and equipment.
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/us-cellular-reports-third-quarter-2015-results-300169479.html
SOURCE United States Cellular Corporation