CHICAGO, Oct. 31, 2019 /PRNewswire/ --
As previously announced, U.S. Cellular will hold a teleconference November 1, 2019, 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 $1,031 million for the third quarter of 2019, versus $1,001 million for the same period one year ago. Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $23 million and $0.27, respectively, for the third quarter of 2019 compared to $36 million and $0.41, respectively, in the same period one year ago.
"I'm pleased with the progress we made this quarter," said Kenneth R. Meyers, U.S. Cellular president and CEO. "We generated improved financial results and although subscriber activity was slow early in the quarter, we gained momentum and finished strong, achieving sequential improvement in postpaid handset net additions by delivering on our customer satisfaction strategy and implementing many of our strategic initiatives. Our efforts produced growth in revenue and Adjusted EBITDA. Continued popularity of our unlimited Total Plans drove increases in average revenue per user and increased inbound roaming contributed to growth in service revenue. I am pleased to see these trends as we head into the important holiday season.
"We recently completed a brand refresh and launched a new more modern look and a brand promise around 'Bringing Fairness to Wireless,' to reinforce the values that have always been part of U.S. Cellular. Another driver of customer satisfaction is our high-quality network, which is performing well even as data usage continues to increase. Our network modernization efforts are progressing as we ready our network for 5G, so that even customers with 4G devices have experienced better network quality and improved speeds. Additionally, we are on track to launch 5G service in Iowa and Wisconsin during the first quarter of 2020."
2019 Estimated Results
U.S. Cellular's current estimates of full-year 2019 results are shown below. Such estimates represent management's view as of October 31, 2019 and should not be assumed to be current as of any future date. U.S. Cellular 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.
|
2019 Estimated Results
|
|
Previous
|
Current
|
|
(Dollars in millions)
|
|
|
|
Total operating revenues
|
$3,900-$4,100
|
$3,950-$4,050
|
|
Adjusted OIBDA1
|
$725-$875
|
$750-$850
|
|
Adjusted EBITDA1
|
$900-$1,050
|
$925-$1,025
|
|
Capital expenditures
|
$625-$725
|
Unchanged
|
The following table provides a reconciliation of Net income to Adjusted OIBDA and Adjusted EBITDA for 2019 estimated results, actual results for the nine months ended September 30, 2019, and actual results for the year ended December 31, 2018. In providing 2019 estimated results, U.S. Cellular has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, U.S. Cellular believes that the impact of income taxes cannot be reasonably predicted; therefore, U.S. Cellular is unable to provide such guidance.
|
|
|
Actual Results
|
|
2019 Estimated
Results
|
|
Nine Months Ended
September 30, 2019
|
|
Year Ended
December 31, 2018
|
|
(Dollars in millions)
|
|
|
|
|
|
|
Net income (GAAP)
|
N/A
|
|
$
|
115
|
|
|
$
|
164
|
|
|
Add back or deduct:
|
|
|
|
|
|
|
Income tax expense
|
N/A
|
|
55
|
|
|
51
|
|
|
Income before income taxes (GAAP)
|
$80-$180
|
|
$
|
170
|
|
|
$
|
215
|
|
|
Add back:
|
|
|
|
|
|
|
Interest expense
|
115
|
|
87
|
|
|
116
|
|
|
Depreciation, amortization and accretion expense
|
710
|
|
524
|
|
|
640
|
|
|
EBITDA (Non-GAAP)1
|
$905-$1,005
|
|
$
|
781
|
|
|
$
|
971
|
|
|
Add back or deduct:
|
|
|
|
|
|
|
(Gain) loss on asset disposals, net
|
20
|
|
13
|
|
|
10
|
|
|
(Gain) loss on sale of business and other exit costs, net
|
—
|
|
(1)
|
|
|
—
|
|
|
(Gain) loss on license sales and exchanges, net
|
—
|
|
—
|
|
|
(18)
|
|
|
Adjusted EBITDA (Non-GAAP)1
|
$925-$1,025
|
|
$
|
793
|
|
|
$
|
963
|
|
|
Deduct:
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
160
|
|
128
|
|
|
159
|
|
|
Interest and dividend income
|
15
|
|
14
|
|
|
15
|
|
|
Other, net
|
—
|
|
—
|
|
|
(1)
|
|
|
Adjusted OIBDA (Non-GAAP)1
|
$750-$850
|
|
$
|
651
|
|
|
$
|
790
|
|
|
|
|
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. U.S. Cellular does not intend to imply that any such items set forth in the reconciliation above are non-recurring, 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 U.S. Cellular's operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of U.S. Cellular'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, and gains and losses, 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, 2019, can be found on U.S. Cellular's website at investors.uscellular.com.
|
Conference Call Information
U.S. Cellular will hold a conference call on November 1, 2019 at 9:00 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 customers with 5.0 million connections in 21 states. The Chicago-based company had 5,500 full- and part-time associates as of September 30, 2019. At the end of the third quarter of 2019, Telephone and Data Systems, Inc. owned 82 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: intense competition; the ability to execute U.S. Cellular's business strategy; uncertainties in U.S. Cellular's future cash flows and liquidity and access to the capital markets; the ability to make payments on U.S. Cellular indebtedness or comply with the terms of debt covenants; 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 access to and pricing of unbundled network elements; 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 of U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; 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 services and products 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, 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
|
9/30/2019
|
|
6/30/2019
|
|
3/31/2019
|
|
12/31/2018
|
|
9/30/2018
|
|
Retail Connections
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
|
|
|
|
|
|
|
Total at end of period
|
4,395,000
|
|
|
4,414,000
|
|
|
4,440,000
|
|
|
4,472,000
|
|
|
4,466,000
|
|
|
Gross additions
|
163,000
|
|
|
137,000
|
|
|
137,000
|
|
|
179,000
|
|
|
172,000
|
|
|
Feature phones
|
3,000
|
|
|
5,000
|
|
|
4,000
|
|
|
4,000
|
|
|
3,000
|
|
|
Smartphones
|
121,000
|
|
|
97,000
|
|
|
98,000
|
|
|
132,000
|
|
|
130,000
|
|
|
Connected devices
|
39,000
|
|
|
35,000
|
|
|
35,000
|
|
|
43,000
|
|
|
39,000
|
|
|
Net additions (losses)
|
(19,000)
|
|
|
(26,000)
|
|
|
(32,000)
|
|
|
6,000
|
|
|
(1,000)
|
|
|
Feature phones
|
(11,000)
|
|
|
(10,000)
|
|
|
(13,000)
|
|
|
(11,000)
|
|
|
(14,000)
|
|
|
Smartphones
|
9,000
|
|
|
(1,000)
|
|
|
(1,000)
|
|
|
31,000
|
|
|
29,000
|
|
|
Connected devices
|
(17,000)
|
|
|
(15,000)
|
|
|
(18,000)
|
|
|
(14,000)
|
|
|
(16,000)
|
|
|
ARPU1
|
$
|
46.16
|
|
|
$
|
45.90
|
|
|
$
|
45.44
|
|
|
$
|
45.58
|
|
|
$
|
45.31
|
|
|
ARPA2
|
$
|
119.87
|
|
|
$
|
119.46
|
|
|
$
|
118.84
|
|
|
$
|
119.60
|
|
|
$
|
119.42
|
|
|
Churn rate3
|
1.38
|
%
|
|
1.23
|
%
|
|
1.26
|
%
|
|
1.29
|
%
|
|
1.29
|
%
|
|
Handsets
|
1.09
|
%
|
|
0.97
|
%
|
|
0.99
|
%
|
|
1.00
|
%
|
|
1.02
|
%
|
|
Connected devices
|
3.44
|
%
|
|
3.01
|
%
|
|
3.08
|
%
|
|
3.20
|
%
|
|
3.04
|
%
|
|
Prepaid
|
|
|
|
|
|
|
|
|
|
|
Total at end of period
|
510,000
|
|
|
500,000
|
|
|
503,000
|
|
|
516,000
|
|
|
528,000
|
|
|
Gross additions
|
70,000
|
|
|
61,000
|
|
|
61,000
|
|
|
66,000
|
|
|
80,000
|
|
|
Net additions (losses)
|
9,000
|
|
|
(2,000)
|
|
|
(13,000)
|
|
|
(12,000)
|
|
|
1,000
|
|
|
ARPU1
|
$
|
34.35
|
|
|
$
|
34.43
|
|
|
$
|
33.44
|
|
|
$
|
32.80
|
|
|
$
|
32.09
|
|
|
Churn rate3
|
4.03
|
%
|
|
4.20
|
%
|
|
4.92
|
%
|
|
4.98
|
%
|
|
4.98
|
%
|
|
Total connections at end of period4
|
4,957,000
|
|
|
4,967,000
|
|
|
4,995,000
|
|
|
5,041,000
|
|
|
5,050,000
|
|
|
Market penetration at end of period
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating population
|
31,310,000
|
|
|
31,310,000
|
|
|
31,310,000
|
|
|
31,469,000
|
|
|
31,469,000
|
|
|
Consolidated operating penetration5
|
16
|
%
|
|
16
|
%
|
|
16
|
%
|
|
16
|
%
|
|
16
|
%
|
|
Capital expenditures (millions)
|
$
|
170
|
|
|
$
|
195
|
|
|
$
|
102
|
|
|
$
|
242
|
|
|
$
|
118
|
|
|
Total cell sites in service
|
6,554
|
|
|
6,535
|
|
|
6,506
|
|
|
6,531
|
|
|
6,506
|
|
|
Owned towers
|
4,123
|
|
|
4,116
|
|
|
4,106
|
|
|
4,129
|
|
|
4,119
|
|
|
|
|
|
1
|
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.
|
|
|
|
|
2
|
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.
|
|
|
|
3
|
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.
|
|
|
|
4
|
Includes reseller and other connections.
|
|
|
|
5
|
Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total population of consolidated operating markets as estimated by Nielsen.
|
|
United States Cellular Corporation
|
|
Consolidated Statement of Operations Highlights
|
|
(Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019 vs.
2018
|
|
2019
|
|
2018
|
|
2019 vs.
2018
|
|
|
(Dollars and shares in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$
|
774
|
|
|
$
|
759
|
|
|
2
|
%
|
|
$
|
2,272
|
|
|
$
|
2,224
|
|
|
2
|
%
|
|
|
Equipment sales
|
257
|
|
|
242
|
|
|
6
|
%
|
|
698
|
|
|
692
|
|
|
1
|
%
|
|
|
Total operating revenues
|
1,031
|
|
|
1,001
|
|
|
3
|
%
|
|
2,970
|
|
|
2,916
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System operations (excluding Depreciation, amortization and accretion reported below)
|
199
|
|
|
200
|
|
|
(1)
|
%
|
|
568
|
|
|
566
|
|
|
–
|
|
|
|
Cost of equipment sold
|
266
|
|
|
258
|
|
|
3
|
%
|
|
724
|
|
|
716
|
|
|
1
|
%
|
|
|
Selling, general and administrative
|
358
|
|
|
346
|
|
|
3
|
%
|
|
1,027
|
|
|
1,014
|
|
|
1
|
%
|
|
|
Depreciation, amortization and accretion
|
181
|
|
|
160
|
|
|
13
|
%
|
|
524
|
|
|
478
|
|
|
10
|
%
|
|
|
(Gain) loss on asset disposals, net
|
5
|
|
|
3
|
|
|
66
|
%
|
|
13
|
|
|
5
|
|
|
N/M
|
|
|
|
(Gain) loss on sale of business and other exit costs, net
|
—
|
|
|
—
|
|
|
N/M
|
|
|
(1)
|
|
|
—
|
|
|
N/M
|
|
|
|
(Gain) loss on license sales and exchanges, net
|
2
|
|
|
—
|
|
|
N/M
|
|
|
—
|
|
|
(18)
|
|
|
98
|
%
|
|
|
Total operating expenses
|
1,011
|
|
|
967
|
|
|
5
|
%
|
|
2,855
|
|
|
2,761
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
20
|
|
|
34
|
|
|
(40)
|
%
|
|
115
|
|
|
155
|
|
|
(26)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
44
|
|
|
42
|
|
|
5
|
%
|
|
128
|
|
|
120
|
|
|
7
|
%
|
|
|
Interest and dividend income
|
4
|
|
|
4
|
|
|
4
|
%
|
|
14
|
|
|
10
|
|
|
40
|
%
|
|
|
Interest expense
|
(29)
|
|
|
(29)
|
|
|
1
|
%
|
|
(87)
|
|
|
(87)
|
|
|
–
|
|
|
|
Total investment and other income
|
19
|
|
|
17
|
|
|
12
|
%
|
|
55
|
|
|
43
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
39
|
|
|
51
|
|
|
(23)
|
%
|
|
170
|
|
|
198
|
|
|
(14)
|
%
|
|
|
Income tax expense
|
15
|
|
|
14
|
|
|
2
|
%
|
|
55
|
|
|
55
|
|
|
1
|
%
|
|
|
Net income
|
24
|
|
|
37
|
|
|
(33)
|
%
|
|
115
|
|
|
143
|
|
|
(20)
|
%
|
|
|
Less: Net income attributable to noncontrolling interests, net of tax
|
1
|
|
|
1
|
|
|
29
|
%
|
|
6
|
|
|
14
|
|
|
(61)
|
%
|
|
|
Net income attributable to U.S. Cellular shareholders
|
$
|
23
|
|
|
|
$
|
36
|
|
|
|
(34)
|
%
|
|
$
|
109
|
|
|
|
$
|
129
|
|
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
86
|
|
|
86
|
|
|
1
|
%
|
|
87
|
|
|
85
|
|
|
1
|
%
|
|
|
Basic earnings per share attributable to U.S. Cellular shareholders
|
$
|
0.27
|
|
|
$
|
0.42
|
|
|
(35)
|
%
|
|
$
|
1.26
|
|
|
$
|
1.51
|
|
|
(16)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
88
|
|
|
87
|
|
|
1
|
%
|
|
88
|
|
|
86
|
|
|
2
|
%
|
|
|
Diluted earnings per share attributable to U.S. Cellular shareholders
|
$
|
0.27
|
|
|
$
|
0.41
|
|
|
(35)
|
%
|
|
$
|
1.24
|
|
|
$
|
1.49
|
|
|
(17)
|
%
|
|
|
N/M - Percentage change not meaningful
|
|
United States Cellular Corporation
|
|
Consolidated Statement of Cash Flows
|
|
(Unaudited)
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
(Dollars in millions)
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
Net income
|
$
|
115
|
|
|
$
|
143
|
|
|
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
|
|
|
|
|
Depreciation, amortization and accretion
|
524
|
|
|
478
|
|
|
Bad debts expense
|
77
|
|
|
67
|
|
|
Stock-based compensation expense
|
32
|
|
|
26
|
|
|
Deferred income taxes, net
|
(34)
|
|
|
(4)
|
|
|
Equity in earnings of unconsolidated entities
|
(128)
|
|
|
(120)
|
|
|
Distributions from unconsolidated entities
|
99
|
|
|
90
|
|
|
(Gain) loss on asset disposals, net
|
13
|
|
|
5
|
|
|
(Gain) loss on sale of business and other exit costs, net
|
(1)
|
|
|
—
|
|
|
(Gain) loss on license sales and exchanges, net
|
—
|
|
|
(18)
|
|
|
Other operating activities
|
3
|
|
|
2
|
|
|
Changes in assets and liabilities from operations
|
|
|
|
|
Accounts receivable
|
(35)
|
|
|
(1)
|
|
|
Equipment installment plans receivable
|
(42)
|
|
|
(88)
|
|
|
Inventory
|
3
|
|
|
15
|
|
|
Accounts payable
|
(4)
|
|
|
21
|
|
|
Customer deposits and deferred revenues
|
(1)
|
|
|
(5)
|
|
|
Accrued taxes
|
81
|
|
|
1
|
|
|
Accrued interest
|
9
|
|
|
9
|
|
|
Other assets and liabilities
|
(24)
|
|
|
(21)
|
|
|
Net cash provided by operating activities
|
687
|
|
|
600
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Cash paid for additions to property, plant and equipment
|
(439)
|
|
|
(277)
|
|
|
Cash paid for licenses
|
(257)
|
|
|
(2)
|
|
|
Cash received from investments
|
29
|
|
|
50
|
|
|
Cash paid for investments
|
(11)
|
|
|
—
|
|
|
Cash received from divestitures and exchanges
|
32
|
|
|
23
|
|
|
Other investing activities
|
(1)
|
|
|
3
|
|
|
Net cash used in investing activities
|
(647)
|
|
|
(203)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Repayment of long-term debt
|
(14)
|
|
|
(14)
|
|
|
Common Shares reissued for benefit plans, net of tax payments
|
(8)
|
|
|
7
|
|
|
Repurchase of Common Shares
|
(21)
|
|
|
—
|
|
|
Distributions to noncontrolling interests
|
(3)
|
|
|
(5)
|
|
|
Other financing activities
|
(2)
|
|
|
(5)
|
|
|
Net cash used in financing activities
|
(48)
|
|
|
(17)
|
|
|
|
|
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(8)
|
|
|
380
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash
|
|
|
|
|
Beginning of period
|
583
|
|
|
352
|
|
|
End of period
|
$
|
575
|
|
|
$
|
732
|
|
|
United States Cellular Corporation
|
|
Consolidated Balance Sheet Highlights
|
|
(Unaudited)
|
|
|
ASSETS
|
|
September 30, 2019
1
|
|
December 31, 2018
|
|
(Dollars in millions)
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
$
|
570
|
|
|
$
|
580
|
|
|
Short-term investments
|
—
|
|
|
17
|
|
|
Accounts receivable
|
993
|
|
|
976
|
|
|
Inventory, net
|
139
|
|
|
142
|
|
|
Prepaid expenses
|
49
|
|
|
63
|
|
|
Other current assets
|
19
|
|
|
34
|
|
|
Total current assets
|
1,770
|
|
|
1,812
|
|
|
|
|
|
|
Assets held for sale
|
9
|
|
|
54
|
|
|
|
|
|
|
Licenses
|
2,461
|
|
|
2,186
|
|
|
|
|
|
|
Investments in unconsolidated entities
|
471
|
|
|
441
|
|
|
|
|
|
|
Property, plant and equipment, net
|
2,144
|
|
|
2,202
|
|
|
|
|
|
|
Operating lease right-of-use assets
|
897
|
|
|
—
|
|
|
|
|
|
|
Other assets and deferred charges
|
539
|
|
|
579
|
|
|
|
|
|
|
Total assets
|
$
|
8,291
|
|
|
$
|
7,274
|
|
|
United States Cellular Corporation
|
|
Consolidated Balance Sheet Highlights
|
|
(Unaudited)
|
|
|
LIABILITIES AND EQUITY
|
|
September 30, 2019
1
|
|
December 31, 2018
|
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
Current liabilities
|
|
|
|
|
Current portion of long-term debt
|
$
|
19
|
|
|
$
|
19
|
|
|
Accounts payable
|
337
|
|
|
313
|
|
|
Customer deposits and deferred revenues
|
155
|
|
|
157
|
|
|
Accrued taxes
|
88
|
|
|
30
|
|
|
Accrued compensation
|
68
|
|
|
78
|
|
|
Short-term operating lease liabilities
|
104
|
|
|
—
|
|
|
Other current liabilities
|
78
|
|
|
94
|
|
|
Total current liabilities
|
849
|
|
|
691
|
|
|
|
|
|
|
Liabilities held for sale
|
1
|
|
|
1
|
|
|
|
|
|
|
Deferred liabilities and credits
|
|
|
|
|
Deferred income tax liability, net
|
477
|
|
|
510
|
|
|
Long-term operating lease liabilities
|
864
|
|
|
—
|
|
|
Other deferred liabilities and credits
|
312
|
|
|
389
|
|
|
|
|
|
|
Long-term debt, net
|
1,592
|
|
|
1,605
|
|
|
|
|
|
|
Noncontrolling interests with redemption features
|
11
|
|
|
11
|
|
|
|
|
|
|
Equity
|
|
|
|
|
U.S. Cellular shareholders' equity
|
|
|
|
|
Series A Common and Common Shares, par value $1 per share
|
88
|
|
|
88
|
|
|
Additional paid-in capital
|
1,622
|
|
|
1,590
|
|
|
Treasury shares
|
(70)
|
|
|
(65)
|
|
|
Retained earnings
|
2,532
|
|
|
2,444
|
|
|
Total U.S. Cellular shareholders' equity
|
4,172
|
|
|
4,057
|
|
|
|
|
|
|
Noncontrolling interests
|
13
|
|
|
10
|
|
|
|
|
|
|
Total equity
|
4,185
|
|
|
4,067
|
|
|
|
|
|
|
Total liabilities and equity
|
$
|
8,291
|
|
|
$
|
7,274
|
|
|
|
|
1
|
As of January 1, 2019, U.S. Cellular adopted the new lease accounting standard, ASC 842, using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2019 amounts include the impacts of ASC 842, but 2018 amounts remain as previously reported.
|
|
United States Cellular Corporation
|
|
Financial Measures and Reconciliations
|
|
(Unaudited)
|
|
|
Free Cash Flow
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
Cash flows from operating activities (GAAP)
|
$
|
211
|
|
|
$
|
235
|
|
|
$
|
687
|
|
|
$
|
600
|
|
|
Less: Cash paid for additions to property, plant and equipment
|
157
|
|
|
103
|
|
|
439
|
|
|
277
|
|
|
Free cash flow (Non-GAAP)1
|
$
|
54
|
|
|
$
|
132
|
|
|
$
|
248
|
|
|
$
|
323
|
|
|
|
|
1
|
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 liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment.
|
EBITDA, Adjusted EBITDA and Adjusted OIBDA
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Operating income.
|
Three Months Ended
September 30,
|
|
2019
|
|
2018
|
|
(Dollars in millions)
|
|
|
|
|
Net income (GAAP)
|
$
|
24
|
|
|
$
|
37
|
|
|
Add back:
|
|
|
|
|
Income tax expense
|
15
|
|
|
14
|
|
|
Interest expense
|
29
|
|
|
29
|
|
|
Depreciation, amortization and accretion
|
181
|
|
|
160
|
|
|
EBITDA (Non-GAAP)
|
249
|
|
|
240
|
|
|
Add back or deduct:
|
|
|
|
|
(Gain) loss on asset disposals, net
|
5
|
|
|
3
|
|
|
(Gain) loss on license sales and exchanges, net
|
2
|
|
|
—
|
|
|
Adjusted EBITDA (Non-GAAP)
|
256
|
|
|
243
|
|
|
Deduct:
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
44
|
|
|
42
|
|
|
Interest and dividend income
|
4
|
|
|
4
|
|
|
Adjusted OIBDA (Non-GAAP)
|
208
|
|
|
197
|
|
|
Deduct:
|
|
|
|
|
Depreciation, amortization and accretion
|
181
|
|
|
160
|
|
|
(Gain) loss on asset disposals, net
|
5
|
|
|
3
|
|
|
(Gain) loss on license sales and exchanges, net
|
2
|
|
|
—
|
|
|
Operating income (GAAP)
|
$
|
20
|
|
|
$
|
34
|
|
View original content:http://www.prnewswire.com/news-releases/us-cellular-reports-third-quarter-2019-results-300949464.html
SOURCE United States Cellular Corporation