U.S. Cellular reports fourth quarter 2018 results
CHICAGO, Feb. 22, 2019 /PRNewswire/ --
As previously announced, U.S. Cellular will hold a teleconference on February 22, 2019 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 $1,051 million for the fourth quarter of 2018, versus $1,029 million for the same period one year ago. Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $21 million and $0.23, respectively, for the fourth quarter of 2018. For the quarter ended December 31, 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 (non-GAAP) were $4 million and $0.05, respectively. Including the tax benefit recorded during the quarter ended December 31, 2017, Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $273 million and $3.18, respectively.
U.S. Cellular reported total operating revenues of $3,967 million and $3,890 million for the years ended 2018 and 2017, respectively. Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $150 million and $1.72, respectively, for the year ended 2018. For the year ended December 31, 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 (non-GAAP) were $50 million and $0.58, respectively. Including the tax benefit and the goodwill impairment charge, Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $12 million and $0.14, respectively.
"U.S. Cellular delivered strong results in 2018," said Kenneth R. Meyers, U.S. Cellular President and CEO. "We made significant progress on our strategic imperatives, protecting and growing our customer base while also increasing revenues and profitability, enabling us to enter 2019 in a position to invest in the future competitiveness of U.S. Cellular.
"We achieved our number one imperative to protect our customer base by increasing handset connections and customer loyalty. Continued adoption of unlimited plans helped drive an increase in average revenue per user. Inbound roaming revenues also increased. For the second year in a row, we tightly managed costs throughout the business, generating $200 million in savings over the two years. All in, Adjusted EBITDA for 2018 increased 17 percent over the previous year and the associated margin expanded by more than 300 basis points.
"As we move into 2019, we are in a strong position to support the increased level of investment needed to execute network enhancements including deployment of 5G technology. We will also continue our focus on strengthening the customer base, identifying new and emerging revenue streams, and reducing costs throughout the business. Additionally, we are expanding our footprint by edging out into Sioux City, Iowa and Northern Wisconsin."
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 February 22, 2019. 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.
2019 Estimated Results Actual Results for
the
Year Ended
December 31, 2018
(Dollars in millions)
Total operating revenues
$4,100-$4,300 $
3,967
Adjusted OIBDA (1)
$725-$875 $
790
Adjusted EBITDA (1)
$900-$1,050 $
963
Capital expenditures
$625-$725 $
515
The following table provides a reconciliation of Net income to Adjusted OIBDA and Adjusted EBITDA for 2019 estimated results and actual results for the years ended December 31, 2018 and 2017. 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.
2019 Estimated Actual Results for
the Actual Results for
Results Year Ended the Year Ended
December 31, 2018 (1) December 31, 2017
(Dollars in millions)
Net income (GAAP) N/A $
164 $
15
Add back or deduct:
Income tax expense (benefit) N/A 51 (287)
Income (loss) before income
taxes (GAAP)
$60-$210 $
215 $
(272)
Add back:
Interest expense 115 116 113
Depreciation, amortization and
accretion expense 710 640 615
EBITDA (Non-GAAP) (2)
$885-$1,035 $
971 $
456
Add back or deduct:
Loss on impairment of goodwill 370
(Gain) loss on asset
disposals, net 20 10 17
(Gain) loss on sale of
business and other exit
costs, net (1)
(Gain) loss on license sales
and exchanges, net (5) (18) (22)
Adjusted EBITDA (Non-GAAP)
(2)
$900-$1,050 $
963 $
820
Deduct:
Equity in earnings of
unconsolidated entities 155 159 137
Interest and dividend income 20 15 8
Other, net (1)
Adjusted OIBDA (Non-GAAP) (2)
$725-$875 $
790 $
675
(1) As of January 1, 2018, U.S. Cellular adopted the new
revenue recognition standard, ASC 606, using a modified
retrospective approach. Under this method, the new
accounting standard is applied only to the most recent
period presented. As a result, 2018 amounts include the
impacts of ASC 606, but 2017 amounts remain as
previously reported.
(2) 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 December 31, 2018, 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 22, 2019 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/1145/29446
-- Access the call by phone at 877-273-7192 (US/Canada), conference ID:
1858446.
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 22 states. The Chicago-based company had 5,600 full- and part-time associates as of December 31, 2018. At the end of the fourth quarter of 2018, 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 12/31/2018 (1) 9/30/2018 (1) 6/30/2018 (1) 3/31/2018 (1) 12/31/2017
--- ---
Retail Connections
Postpaid
Total at end of period 4,472,000 4,466,000 4,468,000 4,481,000 4,518,000
Gross additions 179,000 172,000 146,000 129,000 177,000
Feature phones 4,000 3,000 5,000 5,000 5,000
Smartphones 132,000 130,000 106,000 91,000 128,000
Connected devices 43,000 39,000 35,000 33,000 44,000
Net additions (losses) 6,000 (1,000) (13,000) (37,000) 5,000
Feature phones (11,000) (14,000) (12,000) (15,000) (15,000)
Smartphones 31,000 29,000 17,000 (1,000) 33,000
Connected devices (14,000) (16,000) (18,000) (21,000) (13,000)
ARPU (2) $
45.58 $
45.31 $
44.74 $
44.34 $
44.12
ABPU (Non-GAAP) (3) $
60.46 $
59.41 $
57.75 $
57.10 $
56.69
ARPA (4) $
119.60 $
119.42 $
118.57 $
118.22 $
118.05
ABPA (Non-GAAP) (5) $
158.66 $
156.57 $
153.03 $
152.26 $
151.68
Churn rate (6) 1.29 1.29 1.19 1.23 1.27
% % % % %
Handsets 1.00 1.02 0.92 0.97 1.00
% % % % %
Connected devices 3.20 3.04 2.85 2.79 2.84
% % % % %
Prepaid
Total at end of period 516,000 528,000 527,000 525,000 519,000
Gross additions 66,000 80,000 78,000 88,000 83,000
Net additions (losses) (12,000) 1,000 2,000 6,000 4,000
ARPU (2) $
32.80 $
32.09 $
32.32 $
31.78 $
32.42
Churn rate (6) 4.98 4.98 4.83 5.27 5.09
% % % % %
Total connections at end of period
(7) 5,041,000 5,050,000 5,051,000 5,063,000 5,096,000
Market penetration at end of period
Consolidated operating population 31,469,000 31,469,000 31,469,000 31,469,000 31,834,000
Consolidated operating penetration 16
(8)
% 16
% 16
% 16
% 16
%
Capital expenditures (millions) $
242 $
118 $
86 $
70 $
213
Total cell sites in service 6,531 6,506 6,478 6,473 6,460
Owned towers 4,129 4,119 4,105 4,099 4,080
Due to rounding, the sum of quarterly
results may not equal the total for the
year.
(1) As of January 1,
2018, U.S.
Cellular
adopted the new
revenue
recognition
standard, ASC
606, using a
modified
retrospective
approach. Under
this method,
the new
accounting
standard is
applied only to
the most recent
period
presented. As a
result, 2018
amounts include
the impacts of
ASC 606, but
2017 amounts
remain as
previously
reported.
(2) 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.
(3) Average Billings
Per User (ABPU)
- non-GAAP
metric 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.
(4) 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.
(5) Average Billings
Per Account
(ABPA) - non-
GAAP metric 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.
(6) 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.
(7) Includes
reseller and
other
connections.
(8) 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
Year Ended
December 31,
December 31,
2018 (1) 2017 2018 vs. 2018 (1) 2017 2018 vs.
2017 2017
---
(Dollars and shares in millions, except
per share amounts)
Operating revenues
Service $
754 $
755
- $
2,978 $
2,978 -
Equipment sales 297 274 9 989 912 8
% %
Total operating revenues 1,051 1,029 2 3,967 3,890 2
% %
Operating expenses
System operations
(excluding Depreciation, % %
amortization and accretion
reported below) 193 183 5 758 732 4
Cost of equipment sold 315 322 (2) 1,031 1,071 (4)
% %
Selling, general and 373 372
- 1,388 1,412 (2)
administrative
%
Depreciation, amortization 162 155 5 640 615 4
and accretion % %
Loss on impairment of
goodwill - N/M 370 N/M
(Gain) loss on asset 5 4 33 10 17 (40)
disposals, net %
%
(Gain) loss on sale of
business and other exit
costs, net - N/M (1) N/M
(Gain) loss on license - (3) N/M (18) (22) 20
sales and exchanges, net %
Total operating expenses 1,048 1,033 2 3,809 4,194 (9)
%
%
Operating income (loss) 3 (4) N/M 158 (304) N/M
Investment and other income (expense)
Equity in earnings of 39 36 9 159 137 16
unconsolidated entities % %
Interest and dividend 4 2 N/M 15 8 83
income %
Interest expense (29) (28) (5) (116) (113) (3)
% %
Other, net - 28
% (1) N/M
Total investment and other 14 10 49 57 32 76
income % %
Income (loss) before income
taxes 17 6 N/M 215 (272) N/M
Income tax expense (4) (267) 99
(benefit) % 51 (287) N/M
Net income 21 273 (92)
% 164 15 N/M
Less: Net income
attributable to %
noncontrolling interests,
net of tax - 3 14 3 N/M
Net income attributable to $
21 $
273 (92)
U.S. Cellular shareholders
% $
150 $
12 N/M
Basic weighted average 86 85 1 86 85 1
shares outstanding % %
Basic earnings per share $
0.24 $
3.21 (93)
attributable to U.S.
Cellular shareholders % $
1.75 $
0.14 N/M
Diluted weighted average 88 86 2 87 86 1
shares outstanding % %
Diluted earnings per share $
0.23 $
3.18 (93)
attributable to U.S.
Cellular shareholders % $
1.72 $
0.14 N/M
N/M -Percentage change not meaningful
(1) As of January 1, 2018, U.S.
Cellular adopted the new
revenue recognition standard,
ASC 606, using a modified
retrospective approach. Under
this method, the new accounting
standard is applied only to the
most recent period presented.
As a result, 2018 amounts
include the impacts of ASC 606,
but 2017 amounts remain as
previously reported.
United States Cellular Corporation
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31, 2018 (1) 2017
--- ---
(Dollars in millions)
Cash flows from operating activities
Net income $
164 $
15
Add (deduct) adjustments to reconcile net income
to net cash flows from operating activities
Depreciation, amortization and
accretion 640 615
Bad debts expense 95 89
Stock-based compensation expense 37 30
Deferred income taxes, net (3) (365)
Equity in earnings of
unconsolidated entities (159) (137)
Distributions from unconsolidated
entities 152 136
Loss on impairment of goodwill - 370
(Gain) loss on asset disposals,
net 10 17
(Gain) loss on license sales and
exchanges, net (18) (22)
Other operating activities 3 1
Changes in assets and liabilities from
operations
Accounts receivable (39) (68)
Equipment installment plans
receivable (149) (261)
Inventory (4)
Accounts payable 3 (14)
Customer deposits and deferred
revenues 7 (3)
Accrued taxes (39) 26
Other assets and liabilities 9 40
Net cash provided by operating
activities 709 469
Cash flows from investing activities
Cash paid for additions to
property, plant and equipment (512) (465)
Cash paid for licenses (8) (189)
Cash received for investments 50
Cash paid for investments (17) (50)
Cash received from divestitures
and exchanges 24 21
Other investing activities (1)
Net cash used in investing
activities (464) (683)
Cash flows from financing activities
Repayment of long-term debt (19) (14)
Common shares reissued for benefit
plans, net of tax payments 18 1
Distributions to noncontrolling
interests (6) (4)
Other financing activities (7) (3)
Net cash used in financing
activities (14) (20)
Net increase (decrease) in cash,
cash equivalents and restricted
cash 231 (234)
Cash, cash equivalents and restricted cash
Beginning of period 352 586
End of period $
583 $
352
(1) As of January 1, 2018, U.S.
Cellular adopted the new
revenue recognition standard,
ASC 606, using a modified
retrospective approach. Under
this method, the new accounting
standard is applied only to the
most recent period presented.
As a result, 2018 amounts
include the impacts of ASC 606,
but 2017 amounts remain as
previously reported.
United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
December 31, 2018 (1) 2017
--- ---
(Dollars in millions)
Current assets
Cash and cash equivalents $
580 $
352
Short-term investments 17 50
Accounts receivable 976 843
Inventory, net 142 138
Prepaid expenses 63 79
Other current assets 34 21
Total current assets 1,812 1,483
Assets held for sale 54 10
Licenses 2,186 2,223
Investments in unconsolidated entities 441 415
Property, plant and equipment, net 2,202 2,320
Other assets and deferred charges 579 390
Total assets $
7,274 $
6,841
United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
December 31, 2018 (1) 2017
--- ---
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt $
19 $
18
Accounts payable 313 310
Customer deposits and deferred revenues 157 185
Accrued taxes 30 56
Accrued compensation 78 74
Other current liabilities 94 90
Total current liabilities 691 733
Liabilities held for sale 1
Deferred liabilities and credits
Deferred income tax liability, net 510 461
Other deferred liabilities and credits 389 337
Long-term debt, net 1,605 1,622
Noncontrolling interests with redemption features 11 1
Equity
U.S. Cellular shareholders' equity
Series A Common and Common Shares, par value $1 per share 88 88
Additional paid-in capital 1,590 1,552
Treasury shares (65) (120)
Retained earnings 2,444 2,157
Total U.S. Cellular shareholders' equity 4,057 3,677
Noncontrolling interests 10 10
Total equity 4,067 3,687
Total liabilities and equity $
7,274 $
6,841
(1) As of January 1, 2018, U.S.
Cellular adopted the new
revenue recognition standard,
ASC 606, using a modified
retrospective approach. Under
this method, the new accounting
standard is applied only to the
most recent period presented.
As a result, 2018 amounts
include the impacts of ASC 606,
but 2017 amounts remain as
previously reported.
United States Cellular Corporation
Financial Measures and Reconciliations
(Unaudited)
Free Cash Flow
Three Months Ended Year Ended
December 31,
December 31,
2018 2017 2018 2017
---
(Dollars in millions)
Cash flows
from
operating
activities
(GAAP) $
108 $
76 $
709 $
469
Less: Cash
paid for
additions
to
property,
plant and
equipment 235 213 512 465
Free cash
flow (Non-
GAAP) (1) $
(127) $
(137) $
197 $
4
(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.
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 and noncontrolling interests impacts. 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 impacted by such items.
Three Months Ended Year Ended
December 31,
December 31,
2018 2017 2018 2017
(Dollars in millions,
except per share
amounts)
Net income
attributable to U.S.
Cellular
shareholders (GAAP) $
21 $
273 $
150 $
12
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
attributable to U.S.
Cellular
shareholders
excluding
adjustments (Non-
GAAP) $
21 $
4 $
150 $
50
Diluted earnings per
share attributable
to U.S. Cellular
shareholders (GAAP) $
0.23 $
3.18 $
1.72 $
0.14
Adjustments:
Loss in 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 per
share attributable
to U.S. Cellular
shareholders
excluding
adjustments (Non-
GAAP) $
0.23 $
0.05 $
1.72 $
0.58
(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 12/31/2018 (1) 9/30/2018 (1) 6/30/2018 (1) 3/31/2018 (1) 12/31/2017
---
(Dollars and
connection
counts in
millions)
Calculation of
Postpaid ARPU
---
Postpaid service
revenues $
611 $
607 $
600 $
598 $
598
Average number
of postpaid
connections 4.47 4.47 4.47 4.50 4.52
Number of months
in period 3 3 3 3 3
Postpaid ARPU
(GAAP metric) $
45.58 $
45.31 $
44.74 $
44.34 $
44.12
Calculation of
Postpaid ABPU
---
Postpaid service
revenues $
611 $
607 $
600 $
598 $
598
Equipment
installment
plan billings 199 189 174 172 170
Total billings
to postpaid
connections $
810 $
796 $
774 $
770 $
768
Average number
of postpaid
connections 4.47 4.47 4.47 4.50 4.52
Number of months
in period 3 3 3 3 3
Postpaid ABPU
(Non-GAAP
metric) $
60.46 $
59.41 $
57.75 $
57.10 $
56.69
Calculation of
Postpaid ARPA
---
Postpaid service
revenues $
611 $
607 $
600 $
598 $
598
Average number
of postpaid
accounts 1.70 1.70 1.69 1.69 1.69
Number of months
in period 3 3 3 3 3
Postpaid ARPA
(GAAP metric) $
119.60 $
119.42 $
118.57 $
118.22 $
118.05
Calculation of
Postpaid ABPA
---
Postpaid service
revenues $
611 $
607 $
600 $
598 $
598
Equipment
installment
plan billings 199 189 174 172 170
Total billings
to postpaid
accounts $
810 $
796 $
774 $
770 $
768
Average number
of postpaid
accounts 1.70 1.70 1.69 1.69 1.69
Number of months
in period 3 3 3 3 3
Postpaid ABPA
(Non-GAAP
metric) $
158.66 $
156.57 $
153.03 $
152.26 $
151.68
Numbers may not foot due to rounding.
(1) As of January 1, 2018, U.S.
Cellular adopted the new
revenue recognition standard,
ASC 606, using a modified
retrospective approach. Under
this method, the new accounting
standard is applied only to the
most recent period presented.
As a result, 2018 amounts
include the impacts of ASC 606,
but 2017 amounts remain as
previously reported.
View original content:http://www.prnewswire.com/news-releases/us-cellular-reports-fourth-quarter-2018-results-300800317.html
SOURCE United States Cellular Corporation
