TDS reports third quarter 2020 results
CHICAGO, Nov. 5, 2020 /PRNewswire/ --
As previously announced, TDS will hold a teleconference November 6, 2020, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,324 million for the third quarter of 2020, versus $1,321 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $78 million and $0.66, respectively, for the third quarter of 2020 compared to $18 million and $0.15, respectively, in the same period one year ago.
"The TDS Enterprise had a strong quarter," said LeRoy T. Carlson, Jr., TDS President and CEO. "Impressive financial results produced by UScellular and TDS Telecom demonstrate how much our customers value our essential communications and high-quality data services. Both businesses have lifted their expectations for 2020 financial performance. Our associates continue to show exceptional dedication and resilience in keeping our operations and networks performing at top levels for our customers.
"At UScellular, churn remained very low and retail net additions grew through an increase in connected devices. The positive impact of higher ARPU, combined with operational and cost discipline throughout the quarter, helped drive a strong increase in profitability, compared to the same period a year ago. LT Therivel has successfully transitioned into his new role as CEO. During the quarter UScellular successfully completed a 5G millimeter wave test data session showing significant expansion of signal reach and speed. This is important in enabling UScellular to move faster and more cost-efficiently in its 5G evolution and it will also leverage this technology to better serve its customers and help close the digital divide. UScellular has launched a new logo and brand identity with a modern look - a visual signal of how they are working to expand their brand appeal.
"At TDS Telecom, our fiber investments are delivering results. TDS Telecom grew its Wireline video and broadband connections, and combined with demand for higher broadband speeds, drove increases in average residential revenue per connection and total residential revenue. TDS Telecom continues its fiber strategy and has now deployed fiber to 280,000 or 34% of its wireline service addresses. Bolstered by the Continuum acquisition, cable operations produced an exceptional quarter with increased broadband connections generating a 19% growth in revenues and a strong increase in profitability."
2020 Estimated Results
TDS' current estimates of full-year 2020 results for UScellular and TDS Telecom are shown below. Such estimates represent management's view as of November 5, 2020 and should not be assumed to be current as of any future date. TDS 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.
2020 Estimated Results
UScellular
Previous
Current
--- ---
(Dollars in millions)
Service revenues
$3,000-$3,100
$3,025-$3,075
Adjusted OIBDA(1)
$725-$850
$800-$875
Adjusted EBITDA(1)
$900-$1,025
$975-$1,050
Capital expenditures
$850-$950
Unchanged
TDS Telecom
Previous
Current
---
(Dollars in millions)
Total operating revenues
$950-$1,000 Unchanged
Adjusted OIBDA(1)
$280-$310
$300-$320
Adjusted EBITDA(1)
$290-$320
$305-$325
Capital expenditures
$300-$350 Unchanged
The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2020 estimated results, actual results for the nine months ended September 30, 2020, and actual results for the year ended December 31, 2019. In providing 2020 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.
2020 Estimated Results
UScellular TDS
Telecom
(Dollars in
millions)
Net income (GAAP) N/A N/A
Add back:
Income tax expense N/A N/A
Income before
income taxes
(GAAP)
$165-$240
$95-$115
Add back:
Interest expense 110
Depreciation,
amortization and
accretion expense 680 210
EBITDA (Non-
GAAP)(1)
$955-$1,030
$305-$325
Add back or deduct:
(Gain) loss on
asset disposals,
net 20
Adjusted EBITDA
(Non-GAAP)(1)
$975-$1,050
$305-$325
Deduct:
Equity in earnings
of unconsolidated
entities 170
Interest and
dividend income 5 5
Adjusted OIBDA
(Non-GAAP)(1)
$800-$875
$300-$320
Actual Results
Nine Months Ended Year Ended
September 30, 2020
December 31, 2019
UScellular TDS UScellular TDS
Telecom
Telecom
(Dollars in millions)
Net income (GAAP) $
227 $
81 $
133 $
92
Add back:
Income tax expense 11 13 52 30
Income before income taxes
(GAAP) $
238 $
94 $
185 $
122
Add back:
Interest expense 76 (3) 110 (3)
Depreciation, amortization
and accretion expense 516 152 702 200
EBITDA (Non-GAAP)(1) $
830 $
243 $
997 $
320
Add back or deduct:
(Gain) loss on asset
disposals, net 14 1 19 (7)
(Gain) loss on sale of
business and other exit
costs, net (1)
(Gain) loss on investments (3)
Adjusted EBITDA (Non-
GAAP)(1) $
841 $
243 $
1,015 $
313
Deduct:
Equity in earnings of
unconsolidated entities 137 166
Interest and dividend income 6 4 17 12
Other, net (1)
Adjusted OIBDA (Non-
GAAP)(1) $
698 $
240 $
832 $
300
Numbers may not foot due to rounding.
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. TDS
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 TDS' 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 TDS'
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, 2020, can be found on
TDS' website at investors.tdsinc.com.
Conference Call Information
TDS will hold a conference call on November 6, 2020 at 9:00 a.m. Central Time.
-- Access the live call on the Events & Presentations page of
investors.tdsinc.com or at
https://www.webcaster4.com/Webcast/Page/1145/38510.
-- Access the call by phone at (833) 968-2187, conference ID: 7289911.
Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com.
About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 1000(®) company, provides wireless; cable and wireline broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,300 people as of September 30, 2020.
Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.
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: the impact, duration and severity of the COVID-19 pandemic; intense competition; the ability to execute TDS' business strategy; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the state and federal regulatory environment; the ability to attract people of outstanding talent throughout all levels of the organization; conditions in the U.S. telecommunications industry; TDS' smaller scale relative to larger competitors; changes in demand, consumer preferences, price competition, or churn rates; advances in technology; the value of assets and investments; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or licenses and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; cyber-attacks or other breaches of network or information technology security; changes in facts and circumstances that could require TDS to record adjustments to amounts reflected in the financial statements; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; pending and future litigation. 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 TDS' Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.
The impact of the COVID-19 pandemic on TDS' business is uncertain, but depending on its duration and severity it could have a material adverse effect on TDS' business, financial condition or results of operations.
The impact of the global spread of COVID-19 on TDS' future operations is uncertain. Public health emergencies, such as COVID-19, pose the risk that TDS or its associates, agents, partners and suppliers may be unable to conduct business activities for an extended period of time and/or provide the level of service expected. TDS' ability to attract customers, maintain an adequate supply chain and execute on its business strategies and initiatives could be negatively impacted by this outbreak. Additionally, COVID-19 has caused and could continue to cause increased unemployment, economic downturn and credit market deterioration, all of which could negatively impact TDS. The extent of the impact of COVID-19 on TDS' business, financial condition and results of operations will depend on future circumstances, including the severity of the disease, the duration of the outbreak, actions taken by governmental authorities and other possible direct and indirect consequences, all of which are uncertain and cannot be predicted.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
OneNeck IT Solutions: www.oneneck.com
United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019
--- ---
Retail Connections
Postpaid
Total at end of period 4,401,000 4,372,000 4,359,000 4,383,000 4,395,000
Gross additions 168,000 129,000 132,000 170,000 163,000
Feature phones 4,000 3,000 2,000 2,000 3,000
Smartphones 98,000 82,000 88,000 128,000 121,000
Connected devices 66,000 44,000 42,000 40,000 39,000
Net additions (losses) 28,000 12,000 (26,000) (12,000) (19,000)
Feature phones (8,000) (8,000) (10,000) (11,000) (11,000)
Smartphones 8,000 11,000 (10,000) 13,000 9,000
Connected devices 28,000 9,000 (6,000) (14,000) (17,000)
ARPU(1) $
47.10 $
46.24 $
47.23 $
46.57 $
46.16
ARPA(2) $
123.27 $
120.70 $
122.92 $
120.99 $
119.87
Churn rate(3) 1.06 0.89 1.21 1.38 1.38
% % % % %
Handsets 0.88 0.71 0.95 1.11 1.09
% % % % %
Connected devices 2.35 2.24 3.11 3.44 3.44
% % % % %
Prepaid
Total at end of period 506,000 496,000 494,000 506,000 510,000
Gross additions 65,000 62,000 57,000 63,000 70,000
Net additions (losses) 11,000 2,000 (12,000) (3,000) 9,000
ARPU(1) $
35.45 $
34.89 $
34.07 $
34.11 $
34.35
Churn rate(3) 3.59 4.05 4.67 4.40 4.03
% % % % %
Total connections at end of period4 4,962,000 4,919,000 4,903,000 4,941,000 4,957,000
Market penetration at end of period
Consolidated operating population 31,314,000 31,292,000 31,292,000 30,740,000 31,310,000
Consolidated operating penetration5 16
% 16
% 16
% 16
% 16
%
Capital expenditures (millions) $
216 $
168 $
236 $
243 $
170
Total cell sites in service 6,758 6,673 6,629 6,578 6,554
Owned towers 4,246 4,208 4,184 4,166 4,123
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.
TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019
--- ---
TDS Telecom
Wireline
---
Residential connections
Voice(1) 260,000 261,800 259,100 262,100 266,100
Broadband(2) 260,700 255,100 242,700 241,300 242,200
Video(3) 62,300 61,400 59,000 58,500 57,300
Wireline residential connections 583,000 578,300 560,700 561,900 565,600
Total residential revenue per connection4 $
51.45 $
49.73 $
50.12 $
49.11 $
49.02
Commercial connections
Voice(1) 109,400 112,400 114,400 117,800 121,200
Broadband(2) 20,800 20,700 20,500 20,400 20,600
managedIP5 114,900 115,500 118,300 121,200 124,500
Video(3) 200 200 100 100 400
Wireline commercial connections 245,400 248,700 253,400 259,600 266,600
Total Wireline connections 828,400 827,000 814,200 821,500 832,300
Cable
---
Cable residential and commercial connections
Broadband6 206,200 203,700 196,800 193,500 174,900
Video7 101,800 103,400 105,100 106,600 98,000
Voice8 67,700 69,000 68,900 69,500 63,900
managedIP5 1,800 1,800 1,400 1,300 1,200
Total Cable connections 377,400 378,000 372,300 370,900 338,000
Numbers may not foot due to rounding.
1 The individual circuits connecting a
customer to Wireline's central office
facilities that provide voice
services.
The number of Wireline customers
provided high-capacity data circuits
via various technologies, including
DSL and dedicated internet circuit
2 technologies.
3 The number of Wireline customers
provided video services.
Total residential revenue per
connection is calculated by dividing
total Wireline residential revenue by
the average number of Wireline
residential connections and by the
4 number of months in the period.
5 The number of telephone handsets, data
lines and IP trunks providing
communications using IP networking
technology.
6 Billable number of lines into a
building for high-speed data
services.
Generally, a home or business receiving
video programming counts as one video
connection. In counting bulk
residential or commercial connections,
such as an apartment building or
hotel, connections are counted based
on the number of units/rooms within
7 the building receiving service.
8 Billable number of lines into a
building for voice services.
TDS Telecom
Capital Expenditures (Unaudited)
Quarter Ended 9/30/2020 6/30/2020 3/31/2020 12/31/2019 9/30/2019
---
(Dollars in millions)
Wireline $
74 $
58 $
39 $
98 $
61
Cable 18 17 15 26 20
Total TDS Telecom $
92 $
75 $
54 $
124 $
81
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
---
2020 2019 2020 2020 2019 2020
vs. 2019 vs. 2019
---
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular $
1,027 $
1,031
- $
2,964 $
2,970
-
TDS Telecom 247 231 7 728 695 5
%
%
All Other(1) 50 59 (16) 157 175 (10)
%
%
1,324 1,321
- 3,849 3,840
-
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion 795 823 (3) 2,266 2,319 (2)
%
%
Depreciation, amortization and accretion 161 181 (11) 516 524 (2)
%
%
(Gain) loss on asset disposals, net 6 5 15 14 13 10
%
%
(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 N/M
962 1,011 (5) 2,796 2,855 (2)
%
%
TDS Telecom
Expenses excluding depreciation, amortization and accretion 169 162 4 488 467 4
%
%
Depreciation, amortization and accretion 49 50
- 152 150 2
%
(Gain) loss on asset disposals, net - 65
% 1 (7) N/M
219 212 3 641 609 5
%
%
All Other(1)
Expenses excluding depreciation and amortization 50 62 (19) 157 182 (13)
%
%
Depreciation and amortization 7 6 (26) 17 23 (24)
%
%
(Gain) loss on asset disposals, net - 1 (96) (1) 71
%
%
56 69 (20) 174 205 (14)
%
%
Total operating expenses 1,237 1,292 (4) 3,611 3,669 (2)
%
%
Operating income (loss)
UScellular 65 20 N/M 168 115 46
%
TDS Telecom 28 20 44 87 86 2
%
%
All Other(1) (6) (11) 45 (17) (30) 39
%
%
87 29 N/M 238 171 39
%
Investment and other income (expense)
Equity in earnings of unconsolidated entities 48 44 10 138 129 7
%
%
Interest and dividend income 4 7 (49) 12 24 (52)
%
%
Gain (loss) on investments 3 N/M 3 N/M
Interest expense (43) (42) (1) (119) (128) 8
%
%
Other, net - (60) (1) (58)
%
%
Total investment and other income 12 9 38 33 25 35
%
%
Income before income taxes 99 38 N/M 271 196 38
%
Income tax expense 6 15 (61) 17 64 (73)
%
%
Net income 93 23 N/M 254 132 92
%
Less: Net income attributable to noncontrolling interests, net of tax 15 5 N/M 42 22 87
%
Net income attributable to TDS shareholders $
78 $
18 N/M $
212 $
110 93
%
Basic weighted average shares outstanding 114 115
- 114 114
-
Basic earnings per share attributable to TDS shareholders $
0.68 $
0.15 N/M $
1.85 $
0.96 93
%
Diluted weighted average shares outstanding 115 116
- 115 116
-
Diluted earnings per share attributable to TDS shareholders $
0.66 $
0.15 N/M $
1.81 $
0.93 94
%
N/M -Percentage change not meaningful.
Numbers may not foot due to rounding.
Consists of TDS corporate,
intercompany eliminations and all
other business operations not
included in the UScellular and
1 TDS Telecom segments.
Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
2020 2019
---
(Dollars in millions)
Cash flows from operating activities
Net income $
254 $
132
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion 685 697
Bad debts expense 55 80
Stock-based compensation expense 39 47
Deferred income taxes, net 217 23
Equity in earnings of unconsolidated entities (138) (129)
Distributions from unconsolidated entities 118 100
(Gain) loss on asset disposals, net 15 5
(Gain) loss on sale of business and other exit costs, net - (1)
(Gain) loss on investments (3)
Other operating activities 1 4
Changes in assets and liabilities from operations
Accounts receivable 26 (42)
Equipment installment plans receivable 13 (42)
Inventory 2 3
Accounts payable 95 (4)
Customer deposits and deferred revenues (21) (2)
Accrued taxes (156) 37
Accrued interest 14 9
Other assets and liabilities (50) (43)
Net cash provided by operating activities 1,166 874
Cash flows from investing activities
Cash paid for additions to property, plant and equipment (914) (631)
Cash paid for licenses (169) (257)
Cash received from investments 1 29
Cash paid for investments (1) (11)
Cash received from divestitures and exchanges 1 32
Other investing activities 4 1
Net cash used in investing activities (1,078) (837)
Cash flows from financing activities
Issuance of long-term debt 675
Repayment of long-term debt (8) (16)
TDS Common Shares reissued for benefit plans, net of tax payments (3) (6)
UScellular Common Shares reissued for benefit plans, net of tax payments (11) (8)
Repurchase of TDS Common Shares (14)
Repurchase of UScellular Common Shares (23) (21)
Dividends paid to TDS shareholders (58) (57)
Payment of debt issuance costs (23) (1)
Distributions to noncontrolling interests (2) (3)
Other financing activities 1 9
Net cash provided by (used in) financing activities 534 (103)
Net increase (decrease) in cash, cash equivalents and restricted cash 622 (66)
Cash, cash equivalents and restricted cash
Beginning of period 474 927
End of period $
1,096 $
861
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
September 30, 2020 December 31, 2019
---
(Dollars in millions)
Current assets
Cash and cash equivalents $
1,076 $
465
Accounts receivable, net 1,056 1,124
Inventory, net 164 169
Prepaid expenses 109 98
Income taxes receivable 226 36
Other current assets 39 29
Total current assets 2,670 1,921
Assets held for sale 19
Licenses 2,637 2,480
Goodwill 547 547
Other intangible assets, net 219 239
Investments in unconsolidated entities 508 488
Property, plant and equipment, net 3,727 3,527
Operating lease right-of-use assets 988 972
Other assets and deferred charges 580 607
Total assets $
11,895 $
10,781
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
September 30, 2020 December 31, 2019
---
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt $
3 $
10
Accounts payable 399 374
Customer deposits and deferred revenues 168 189
Accrued interest 24 11
Accrued taxes 63 41
Accrued compensation 107 121
Short-term operating lease liabilities 125 116
Other current liabilities 76 100
Total current liabilities 965 962
Deferred liabilities and credits
Deferred income tax liability, net 893 676
Long-term operating lease liabilities 938 931
Other deferred liabilities and credits 530 481
Long-term debt, net 2,970 2,316
Noncontrolling interests with redemption features 10 11
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share 1 1
Capital in excess of par value 2,479 2,468
Treasury shares, at cost (478) (479)
Accumulated other comprehensive loss (7) (9)
Retained earnings 2,809 2,672
Total TDS shareholders' equity 4,804 4,653
Noncontrolling interests 785 751
Total equity 5,589 5,404
Total liabilities and equity $
11,895 $
10,781
Balance Sheet Highlights
(Unaudited)
September 30, 2020
TDS TDS Corporate Intercompany TDS
UScellular Telecom & Other Eliminations Consolidated
---
(Dollars in millions)
Cash and cash equivalents $
931 $
573 $
147 $
(575) $
1,076
Licenses, goodwill and other intangible assets $
2,628 $
766 $
9
$ $
3,403
Investment in unconsolidated entities 467 4 48 (11) 508
$
3,095 $
770 $
57 $
(11) $
3,911
Property, plant and equipment, net $
2,322 $
1,303 $
102
$ $
3,727
Long-term debt, net:
Current portion $
2
$ $
1
$ $
3
Non-current portion 2,108 4 858 2,970
$
2,110 $
4 $
859
$ $
2,973
TDS Telecom Highlights
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
---
2020 2019 2020 2020 2019 2020
vs. 2019 vs. 2019
---
(Dollars in millions)
Wireline
Operating revenues
Residential $
90 $
83 8 $
260 $
245 6
%
%
Commercial 38 41 (8) 115 127 (9)
% %
Wholesale 45 45 1 136 139 (2)
%
%
Total service revenues 173 169 2
% 511 512 -
Equipment and product sales 4 1 1 (30)
%
%
173 169 2
% 512 512 -
Operating expenses
Cost of services 69 68 2 197 195 1
%
%
Cost of equipment and products (25) 1 1 (30)
% %
Selling, general and administrative expenses 51 52 (3) 148 148 (1)
% %
Expenses excluding depreciation, amortization and accretion 120 120 - 345 344 -
Depreciation, amortization and accretion 30 33 (8) 94 99 (5)
% %
(Gain) loss on asset disposals, net (70)
% (8) N/M
150 153 (2) 439 435 1
% %
Operating income $
23 $
16 42 $
73 $
78 (6)
%
%
Cable
Operating revenues
Residential $
62 $
52 21 $
182 $
152 20
%
%
Commercial 12 10 13 34 32 9
%
%
74 62 19 216 184 18
%
%
Operating expenses
Cost of services 31 27 15 91 79 15
%
%
Selling, general and administrative expenses 18 15 23 52 44 18
%
%
Expenses excluding depreciation, amortization and accretion 49 42 18 143 124 16
%
%
Depreciation, amortization and accretion 20 17 15 59 51 15
%
%
(Gain) loss on asset disposals, net N/M 1 1 (14)
%
69 59 17 202 175 15
%
%
Operating income (loss) $
5 $
3 55 $
14 $
8 76
%
%
Total TDS Telecom operating income $
28 $
20 44 $
87 $
86 2
%
%
N/M -Percentage change not
meaningful.
Numbers may not foot due to
rounding.
Telephone and Data Systems, Inc.
Financial Measures and Reconciliations
(Unaudited)
Free Cash Flow
Three Months Ended Nine Months Ended
September 30,
September 30,
---
2020 2019 2020 2019
---
(Dollars in millions)
Cash flows
from
operating
activities
(GAAP) $
359 $
282 $
1,166 $
874
Less: Cash
paid for
additions
to
property,
plant and
equipment 304 238 914 631
Free cash
flow (Non-
GAAP)(1) $
55 $
44 $
252 $
243
1 Free cash flow is a non-GAAP
financial measure which TDS
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.
View original content:http://www.prnewswire.com/news-releases/tds-reports-third-quarter-2020-results-301167486.html
SOURCE Telephone and Data Systems, Inc.
