U.S. Cellular reports fourth quarter and full year 2017 results
CHICAGO, Feb. 23, 2018 /PRNewswire/ --
As previously announced, U.S. Cellular will hold a teleconference February 23, 2018 at 9:30 a.m. CST. 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 $1,029 million for the fourth quarter of 2017, versus $1,006 million for the same period one year ago and Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $273 million and $3.18, respectively, for the fourth quarter of 2017. Excluding a benefit of $269 million related to the enactment of new tax legislation, Net income attributable to U.S. Cellular common shareholders and related diluted earnings per share excluding adjustments (non-GAAP) were $4 million and $0.05, respectively, for the three months ended December 31, 2017, compared to Net loss attributable to U.S. Cellular shareholders and related diluted loss per share of $6 million and $0.07, respectively, in the same period one year ago.
U.S. Cellular reported total operating revenues of $3,890 million and $3,990 million for the years ended 2017 and 2016, respectively, and Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $12 million and $0.14, respectively, for the year ended 2017. Excluding the benefit of $269 million related to the enactment of new tax legislation and the recognition of a loss on goodwill impairment of $370 million ($307 million, net of tax) in the third quarter, Net income attributable to U.S. Cellular shareholders and related diluted earnings per share excluding adjustments (non-GAAP) were $50 million and $0.58, respectively, for the year ended December 31, 2017, compared to Net income attributable to U.S. Cellular shareholders and related diluted earnings per share of $48 million and $0.56, respectively, for the year ended 2016.
"We made significant progress on the strategic imperatives we set for 2017," said Kenneth R. Meyers, U.S. Cellular President and CEO. "With the success of our Total Plans, which include an unlimited data option and no hidden fees, we were able to grow our customer base through the powerful combination of new customer additions and increased loyalty and customer engagement. Through a company-wide initiative to better align costs with our strategic imperatives, we were able to reduce expenses by some $100 million in 2017 and, importantly, identify and implement programs to generate additional savings in 2018 and beyond. This extensive attention on costs allowed us to offset a decline in revenues caused by competitive pricing pressures and generate a modest increase in profitability.
"Managing our investment spending was another imperative for us in 2017 as we remain focused on providing an exceptional wireless experience for our customers wherever they live, work or play. We do this by investing in our network to increase capacity and roll out new products and services. For example, VoLTE is now operational in Iowa and Wisconsin, providing enhanced features and higher quality calls. We were able to execute these network investments with capital spending well below our original expectations.
"As we look to 2018, I am optimistic about our ability to increase revenues through a larger subscriber base and an expectation for a more rational competitive environment. We will continue to control costs across the organization, and remain disciplined in managing investments of capital for network capacity and quality and for digitization initiatives."
2018 Estimated Results
U.S. Cellular's estimates of full-year 2018 results are shown below. Such estimates represent management's view as of February 23, 2018. 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.
2018 Estimated Results and Actual Results for the Year Ended December 31, 2017
2018 Estimated Results Actual Results for the Year
Ended December 31, 2017
(Dollars in millions)
Total operating revenues $3,850-$4,050 $3,890
Adjusted OIBDA (1)(2) $625-$775 $675
Adjusted EBITDA (1) $765-$915 $820
Capital expenditures $500-$550 $469
The following table provides a reconciliation of Net income to Adjusted OIBDA and Adjusted EBITDA for 2018 estimated results and actual results for the year ended December 31, 2017. In providing 2018 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.
2018 Estimated Results Actual Results for the
Year Ended December 31,
2017
(Dollars in millions)
Net income (GAAP) N/A $15
Add back (deduct):
Income tax
expense
(benefit) N/A (287)
Income (loss) before income taxes (GAAP) $ 10-160 $(272)
--- ------ -----
Add back:
Interest
expense 110 113
Depreciation,
amortization
and accretion
expense 625 615
EBITDA (Non-GAAP) (1) $ 745-895 $456
--- ------- ----
Add back (deduct):
Loss on
impairment of
goodwill - 370
(Gain) loss on
sale of
business and
other exit
costs, net - (1)
(Gain) loss on
license sales
and exchanges,
net - (22)
(Gain) loss on
asset
disposals, net 20 17
Adjusted EBITDA (Non-GAAP) (1) $ 765-915 $820
=== ======= ====
Deduct:
Equity in
earnings of
unconsolidated
entities 130 137
Interest and
dividend
income 10 8
Adjusted OIBDA (Non-GAAP) (1)(2) $ 625-775 $675
=== ======= ====
Note: Totals may not foot due to rounding differences.
(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 (loss)
before income taxes.
(2) A reconciliation of
Adjusted OIBDA (Non-
GAAP) to Operating
income (GAAP) for
full year 2017 actual
results 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 February 23, 2018 at 9:30 a.m. Central Time.
-- Access the live call on the Events & Presentations page of
investors.uscellular.com or at
https://www.webcaster4.com/Webcast/Page/1145/24672.
-- Access the call by phone at 877-407-8029 (US/Canada), no pass code
required.
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 5.1 million connections in 22 states. The Chicago-based company had 5,900 full- and part-time associates as of December 31, 2017. At December 31, 2017, Telephone and Data Systems, Inc. owned 83 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 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
Retail Connections
Postpaid
Total at end of
period 4,518,000 4,513,000 4,478,000 4,455,000 4,482,000
Gross additions 177,000 191,000 174,000 146,000 187,000
Feature phones 5,000 7,000 7,000 7,000 7,000
Smartphones 128,000 132,000 116,000 88,000 109,000
Connected
devices 44,000 52,000 51,000 51,000 71,000
Net additions
(losses) 5,000 35,000 23,000 (27,000) (2,000)
Feature phones (15,000) (15,000) (15,000) (19,000) (21,000)
Smartphones 33,000 44,000 34,000 (9,000) (4,000)
Connected
devices (13,000) 6,000 4,000 1,000 23,000
ARPU (1) $44.12 $43.41 $44.60 $45.42 $45.19
ABPU (Non-GAAP)(2) $56.69 $54.71 $55.19 $55.82 $55.43
ARPA (3) $118.05 $116.36 $119.73 $121.88 $120.67
ABPA (Non-GAAP)(4) $151.68 $146.65 $148.15 $149.78 $148.02
Churn rate (5) 1.27% 1.16% 1.13% 1.29% 1.41%
Handsets 1.00% 0.96% 0.91% 1.08% 1.23%
Connected
devices 2.84% 2.33% 2.35% 2.55% 2.49%
Prepaid
Total at end of
period 519,000 515,000 484,000 480,000 484,000
Gross additions 83,000 102,000 73,000 78,000 83,000
Net additions
(losses) 4,000 31,000 3,000 (4,000) 4,000
ARPU (1) $32.42 $33.12 $33.52 $33.66 $33.25
Churn rate (5) 5.09% 4.75% 4.93% 5.69% 5.44%
Total connections at end of period (6) 5,096,000 5,089,000 5,023,000 4,996,000 5,031,000
Market penetration at end of period
Consolidated operating
population 31,834,000 31,834,000 32,089,000 32,089,000 31,994,000
Consolidated operating
penetration (7) 16% 16% 16% 16% 16%
Capital expenditures (millions) $213 $112 $84 $61 $171
Total cell sites in service 6,460 6,436 6,421 6,417 6,415
Owned towers 4,080 4,051 4,044 4,041 4,040
(1) Average Revenue Per
User (ARPU) -
metric which 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 Billings
Per User (ABPU) -
non-GAAP metric
which is
calculated by
dividing total
postpaid service
revenues plus
equipment
installment plan
billings by the
average number of
postpaid
connections and by
the number of
months in the
period. Refer to
the end of this
release for a
reconciliation of
this metric to its
most comparable
GAAP metric.
(3) Average Revenue Per
Account (ARPA) -
metric which is
calculated by
dividing total
postpaid service
revenues by the
average number of
postpaid accounts
and by the number
of months in the
period.
(4) Average Billings
Per Account (ABPA)
- non-GAAP
metric which is
calculated by
dividing total
postpaid service
revenues plus
equipment
installment plan
billings by the
average number of
postpaid accounts
and by the number
of months in the
period. Refer to
the end of this
release for a
reconciliation of
this metric to its
most comparable
GAAP metric.
(5) Churn rate
represents the
percentage of the
connections that
disconnect service
each month. These
rates represent
the average
monthly churn rate
for each
respective period.
(6) Includes reseller
and other
connections.
(7) 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)
2017 vs. 2016
Increase
Three Months Ended December 31, 2017 2016 (Decrease)
(Dollars and shares in millions, except per
share amounts)
Operating revenues
Service (1) $755 $752 -
Equipment sales 274 254 8%
Total operating revenues (1) 1,029 1,006 2%
----- -----
Operating expenses
System
operations
(excluding
Depreciation,
amortization
and accretion
reported
below) 183 188 (3)%
Cost of
equipment sold 322 283 14%
Selling,
general and
administrative 372 390 (5)%
Depreciation,
amortization
and accretion 155 156 (1)%
(Gain) loss on
asset
disposals, net 4 6 (34)%
(Gain) loss on
license sales
and exchanges,
net (3) (3) (24)%
Total operating expenses 1,033 1,020 1%
----- -----
Operating loss (4) (14) 75%
Investment and other income (expense)
Equity in
earnings of
unconsolidated
entities 36 30 17%
Interest and
dividend
income (1) 2 1 22%
Interest
expense (28) (29) 5%
Other, net - 1 (38)%
Total investment and other
income (1) 10 3 >100%
--- ---
Income (loss) before income taxes 6 (11) >100%
Income tax
expense
(benefit) (267) (6) >(100)%
Net income (loss) 273 (5) >100%
Less: Net
income
attributable
to
noncontrolling
interests, net
of tax - 1 (32)%
Net income (loss) attributable to
U.S. Cellular shareholders $273 $(6) >100%
==== ===
Basic weighted average shares outstanding 85 85 -
Basic earnings (loss) per share
attributable to U.S. Cellular
shareholders $3.21 $(0.07) >100%
===== ======
Diluted weighted average shares outstanding 86 85 1%
Diluted earnings (loss) per share
attributable to $3.18 $(0.07) >100%
U.S. Cellular shareholders
(1) Equipment
installment
plan
interest
income is
reflected
as a
component
of Service
revenues
consistent
with an
accounting
policy
change
effective
January 1,
2017. All
prior
period
numbers
have been
recast to
conform to
this
accounting
change.
United States Cellular Corporation
Consolidated Statement of Operations Highlights
(Unaudited)
2017 vs. 2016
Increase
Year Ended December 31, 2017 2016 (Decrease)
(Dollars and shares in millions, except per
share amounts)
Operating revenues
Service $2,978 $3,081 (3)%
Equipment sales 912 909 -
Total operating revenues 3,890 3,990 (3)%
----- -----
Operating expenses
732 760 (4)%
System
operations
(excluding
Depreciation,
amortization
and accretion
reported
below)
Cost of
equipment sold 1,071 1,081 (1)%
Selling,
general and
administrative 1,412 1,480 (4)%
Depreciation,
amortization
and accretion 615 618 -
Loss on
impairment of
goodwill 370 - N/M
(Gain) loss on
asset
disposals, net 17 22 (22)%
(Gain) loss on
sale of
business and
other exit
costs, net (1) - >(100)%
(Gain) loss on
license sales
and exchanges,
net (22) (19) (17)%
Total operating expenses 4,194 3,942 6%
----- -----
Operating income (loss) (304) 48 >(100)%
Investment and other income (expense)
Equity in
earnings of
unconsolidated
entities 137 140 (2)%
Interest and
dividend
income 8 6 40%
Interest
expense (113) (113) -
Other, net - 1 (19)%
Total investment and other
income 32 34 (1)%
--- ---
Income (loss) before income taxes (272) 82 >(100)%
Income tax
expense
(benefit) (287) 33 >(100)%
Net income 15 49 (70)%
Less: Net
income
attributable
to
noncontrolling
interests, net
of tax 3 1 56%
Net income attributable to U.S.
Cellular shareholders $12 $48 (74)%
=== ===
Basic weighted average shares outstanding 85 85 -
Basic earnings per share
attributable to U.S. Cellular
shareholders $0.14 $0.56 (75)%
===== =====
Diluted weighted average shares outstanding 86 85 -
Diluted earnings per share
attributable to U.S. Cellular
shareholders $0.14 $0.56 (75)%
===== =====
N/M - Percentage change not meaningful
United States Cellular Corporation
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31, 2017 2016
(Dollars in millions)
Cash flows from operating activities
Net income $15 $49
Add (deduct)
adjustments to
reconcile net
income to net
cash flows from
operating
activities
Depreciation,
amortization
and accretion 615 618
Bad debts
expense 89 96
Stock-based
compensation
expense 30 26
Deferred income
taxes, net (365) 6
Equity in
earnings of
unconsolidated
entities (137) (140)
Distributions
from
unconsolidated
entities 136 93
Loss on
impairment of
goodwill 370 -
(Gain) loss on
asset
disposals, net 17 22
(Gain) loss on
sale of
business and
other exit
costs, net (1) -
(Gain) loss on
license sales
and exchanges,
net (22) (19)
Noncash
interest 2 2
Other operating
activities - (2)
Changes in assets
and liabilities
from operations
Accounts
receivable (68) (23)
Equipment
installment
plans
receivable (261) (246)
Inventory - 8
Accounts
payable (14) 48
Customer
deposits and
deferred
revenues (3) (54)
Accrued taxes 26 40
Accrued
interest - (2)
Other assets
and
liabilities 40 (21)
Net cash provided by
operating activities 469 501
--- ---
Cash flows from investing activities
Cash paid for
additions to
property, plant
and equipment (465) (443)
Cash paid for
licenses (189) (53)
Cash paid for
investments (50) -
Cash received from
divestitures and
exchanges 21 21
Federal
Communications
Commission
deposit - (143)
Net cash used in investing
activities (683) (618)
---- ----
Cash flows from financing activities
Repayment of long-
term debt (14) (11)
Common shares
reissued for
benefit plans,
net of tax
payments 1 6
Common shares
repurchased - (5)
Payment of debt
issuance costs (2) (2)
Distributions to
noncontrolling
interests (4) (1)
Other financing
activities (1) 1
Net cash used in financing
activities (20) (12)
--- ---
Net decrease in cash, cash equivalents and
restricted cash (234) (129)
Cash, cash equivalents and restricted cash (1)
Beginning of
period 586 715
End of period $352 $586
===
(1) As of
December 31,
2017, U.S.
Cellular
early
adopted ASU
2016-18 on a
retrospective
basis which
requires
that
restricted
cash be
presented
with Cash
and cash
equivalents
in the
Statement of
Cash Flows.
The
Statement of
Cash Flows
includes
restricted
cash of less
than $1
million as
of December
31, 2017,
and no
restricted
cash as of
December 31,
2016.
United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
December 31, 2017 2016
(Dollars in millions)
Current assets
Cash and cash
equivalents $352 $586
Short-term
investments 50 -
Accounts
receivable
from
customers
and others,
net 843 727
Inventory,
net 138 138
Prepaid
expenses 79 84
Other current
assets 21 23
Total current assets 1,483 1,558
Assets held for sale 10 8
Licenses 2,223 1,886
Goodwill - 370
Investments in unconsolidated
entities 415 413
Property, plant and
equipment, net 2,320 2,470
Other assets and deferred
charges 390 405
--- ---
Total assets $6,841 $7,110
====== ======
United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
December 31, 2017 2016
(Dollars and shares in
millions, except per share
amounts)
Current liabilities
Current portion
of long-term
debt $18 $11
Accounts payable 310 321
Customer
deposits and
deferred
revenues 185 190
Accrued taxes 56 39
Accrued
compensation 74 73
Other current
liabilities 90 84
Total current liabilities 733 718
Deferred liabilities and
credits
Deferred income
tax liability,
net 461 826
Other deferred
liabilities and
credits 337 302
Long-term debt, net 1,622 1,618
Noncontrolling interests
with redemption features 1 1
Equity
U.S. Cellular shareholders'
equity
Series A Common
and Common
Shares, par
value $1 per
share 88 88
Additional paid-
in capital 1,552 1,522
Treasury shares (120) (136)
Retained
earnings 2,157 2,160
Total U.S. Cellular shareholders'
equity 3,677 3,634
Noncontrolling interests 10 11
--- ---
Total equity 3,687 3,645
Total liabilities
and equity $6,841 $7,110
====== ======
United States Cellular Corporation
Financial Measures and Reconciliations
(Unaudited)
Free Cash Flow
Three Months Ended Year Ended
December 31, December 31,
2017 2016 2017 2016
(Dollars in millions)
Cash flows from operating
activities (GAAP) $76 $86 $469 $501
Less: Cash paid for additions
to property, plant and
equipment 213 163 465 443
--- --- --- ---
Free cash flow (Non-
GAAP) (1) $(137) $(77) $4 $58
===== ==== === ===
(1) Management
uses Free
cash flow as
a liquidity
measure and
it is
defined as
Cash flows
from
operating
activities
less Cash
paid for
additions to
property,
plant and
equipment.
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.
Non-GAAP Adjustments
The following non-GAAP financial measures present certain information in the table below excluding the effect of the goodwill impairment charge, enactment of H.R.1, originally referred to as the Tax Cuts and Jobs Act (the Tax Act) and other related tax effects. The goodwill impairment charge, which occurred in the third quarter of 2017, and the deferred tax benefit are being excluded in this presentation, as they cause current operations of U.S. Cellular not to be comparable with prior periods. U.S. Cellular believes these measures may be useful to investors and other users of its financial information when comparing the current period financial results with periods that were not impacted by such items.
Three Months Ended Year Ended
December 31, December 31,
2017 2016 2017 2016
(Dollars in millions,
except per share
amounts)
Net income (loss)
attributable to U.S.
Cellular shareholders
(GAAP) $273 $(6) $12 $48
---- --- --- ---
Adjustments:
Loss on impairment of goodwill - - 370 -
Tax benefit on impairment of
goodwill(1) - - (63) -
Subtotal of Non-GAAP goodwill
adjustments - - 307 -
Effect of the Tax Act (269) - (269) -
Subtotal of Non-GAAP
adjustments (269) - 38 -
Net income (loss)
attributable to U.S.
Cellular shareholders
excluding adjustments
(Non-GAAP) $4 $(6) $50 $48
=== === === ===
Diluted earnings (loss)
per share attributable
to U.S. Cellular
shareholders (GAAP) $3.18 $(0.07) $0.14 $0.56
Adjustments:
Loss on impairment of goodwill - - 4.31 -
Tax benefit on impairment of
goodwill(1) - - (0.74) -
Effect of the Tax Act (3.13) - (3.13) -
Diluted earnings (loss)
per share attributable
to U.S. Cellular
shareholders excluding
adjustments (Non-GAAP) $0.05 $(0.07) $0.58 $0.56
===== ====== ===== =====
(1) Tax benefit
represents
the amount
associated
with the
tax-
amortizable
portion of
the loss on
goodwill
impairment.
Postpaid ABPU and Postpaid ABPA
U.S. Cellular presents Postpaid ABPU and Postpaid ABPA to reflect the revenue shift from Service revenues to Equipment sales resulting from the increased adoption of equipment installment plans. Postpaid ABPU and Postpaid ABPA, as previously defined herein, are non-GAAP financial measures which U.S. Cellular believes are useful to investors and other users of its financial information in showing trends in both service and equipment sales revenues received from customers.
For the Quarter Ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016
(Dollars and connection
counts in millions)
Calculation of Postpaid
ARPU
-----------------------
Postpaid service revenues $598 $586 $597 $608 $607
Average number of postpaid
connections 4.52 4.50 4.47 4.46 4.48
Number of months in period 3 3 3 3 3
Postpaid
ARPU (GAAP
metric) $44.12 $43.41 $44.60 $45.42 $45.19
===
Calculation of Postpaid
ABPU
-----------------------
Postpaid service revenues $598 $586 $597 $608 $607
Equipment installment plan
billings 170 152 142 139 138
--- --- --- --- ---
Total
billings to
postpaid
connections $768 $738 $739 $747 $745
Average number of postpaid
connections 4.52 4.50 4.47 4.46 4.48
Number of months in period 3 3 3 3 3
Postpaid
ABPU (Non-
GAAP
metric) $56.69 $54.71 $55.19 $55.82 $55.43
===
Calculation of Postpaid
ARPA
-----------------------
Postpaid service revenues $598 $586 $597 $608 $607
Average number of postpaid
accounts 1.69 1.68 1.66 1.66 1.68
Number of months in period 3 3 3 3 3
Postpaid
ARPA (GAAP
metric) $118.05 $116.36 $119.73 $121.88 $120.67
===
Calculation of Postpaid
ABPA
-----------------------
Postpaid service revenues $598 $586 $597 $608 $607
Equipment installment plan
billings 170 152 142 139 138
--- --- --- --- ---
Total
billings to
postpaid
accounts $768 $738 $739 $747 $745
Average number of postpaid
accounts 1.69 1.68 1.66 1.66 1.68
Number of months in period 3 3 3 3 3
Postpaid
ABPA (Non-
GAAP
metric) $151.68 $146.65 $148.15 $149.78 $148.02
===
View original content:http://www.prnewswire.com/news-releases/us-cellular-reports-fourth-quarter-and-full-year-2017-results-300603349.html
SOURCE United States Cellular Corporation
