TDS reports fourth quarter and full year 2019 results
CHICAGO, Feb. 20, 2020 /PRNewswire/ --
As previously announced, TDS will hold a teleconference on February 21, 2020 at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com. TDS intends to file its Form 10-K on February 25, 2020.
Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,336 million for the fourth quarter of 2019, versus $1,332 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $12 million and $0.10, respectively, for the fourth quarter of 2019 compared to $16 million and $0.14, respectively, in the same period one year ago. TDS reported Adjusted EBITDA of $293 million for the fourth quarter of 2019 compared to $288 million in the same period one year ago.
TDS reported total operating revenues of $5,176 million and $5,109 million for the years ended 2019 and 2018, respectively. Net income attributable to TDS shareholders and related diluted earnings per share were $121 million and $1.03, respectively, for the year ended 2019 compared to $135 million and $1.17, respectively, for the year ended 2018. TDS reported Adjusted EBITDA of $1,319 million in 2019 compared to $1,267 million in 2018.
"I am pleased with the progress the TDS Family of Companies made in 2019 toward our long-term strategic goals," said LeRoy T. Carlson, Jr., TDS President and CEO. "U.S. Cellular executed on a number of important initiatives in 2019 and increased revenues and Adjusted EBITDA, putting it in a strong position to support multi-year investments in network modernization and 5G launches. TDS Telecom saw continued success with both fiber expansion and broadband penetration, resulting in increased broadband connections and revenues.
"U.S. Cellular customers continued to migrate to unlimited data service plans, shifted to smartphones and adopted device protection plans which combined, boosted average revenue per user. U.S. Cellular also generated strong growth in roaming revenue, while at the same time driving down roaming expense through favorable agreements with major carriers. U.S. Cellular will continue to invest heavily to improve the customer experience. This year, U.S. Cellular will deploy 5G commercially in two markets and continue its VoLTE deployment. Additionally, it has recently launched commercial service in Sioux City, Iowa and Northern Wisconsin.
"In 2019, TDS Telecom continued to expand their fiber footprint both inside and outside of their traditional markets. In the wireline segment, increases in video and broadband connections, coupled with demand for higher broadband speeds, drove increases in average residential revenue per connection. Cable connections also grew rapidly driven by strong increases in broadband connections and the acquisition of Continuum in North Carolina. TDS Telecom plans more fiber expansion while evaluating additional out-of-territory fiber opportunities and cable acquisitions in attractive markets."
2020 Estimated Results
TDS' current estimates of full-year 2020 results for U.S. Cellular and TDS Telecom are shown below. Such estimates represent management's view as of February 20, 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 and Actual Results for the Year Ended December 31, 2019
U.S. Cellular
Estimate Actual
---
(Dollars in
millions)
Service revenues
$3,000-$3,100 $
3,035
Adjusted OIBDA(1)
$775-$900 $
832
Adjusted
EBITDA(1)
$950-$1,075 $
1,015
Capital
expenditures
$850-$950 $
710
TDS Telecom
Estimate Actual
---
(Dollars in
millions)
Total operating
revenues
$950-$1,000 $
930
Adjusted OIBDA(1)
$280-$310 $
300
Adjusted
EBITDA(1)
$290-$320 $
313
Capital
expenditures
$300-$350 $
316
The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2020 estimated results 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.
U.S. Cellular TDS Telecom
Estimate Actual Estimate Actual
(Dollars in millions)
Net income (GAAP) N/A $
133 N/A $
92
Add back:
Income tax expense N/A 52 N/A 30
Income before income taxes
(GAAP)
$130-$255 $
185
$80-$110 $
122
Add back:
Interest expense 110 110 (3)
Depreciation, amortization
and accretion expense 690 702 210 200
EBITDA (Non-GAAP)(1)
$930-$1,055 $
997
$290-$320 $
320
Add back or deduct:
(Gain) loss on asset
disposals, net 20 19 (7)
(Gain) loss on sale of
business and other exit
costs, net (1)
Adjusted EBITDA (Non-
GAAP)(1)
$950-$1,075 $
1,015
$290-$320 $
313
Deduct:
Equity in earnings of
unconsolidated entities 160 166
Interest and dividend
income 15 17 10 12
Adjusted OIBDA (Non-
GAAP)(1)
$775-$900 $
832
$280-$310 $
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 December 31, 2019, can be found on
TDS' website at investors.tdsinc.com.
Conference Call Information
TDS will hold a conference call on February 21, 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/1145/33161
-- Access the call by phone at 877-273-7192 (US/Canada), conference ID:
2677654.
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, U.S. Cellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,400 people as of December 31, 2019.
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: 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 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 TDS and 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 and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by TDS to furnish this press release to the Securities and Exchange Commission, which are incorporated by reference herein.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
U.S. Cellular: 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 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018
--- ---
Retail Connections
Postpaid
Total at end of period 4,383,000 4,395,000 4,414,000 4,440,000 4,472,000
Gross additions 170,000 163,000 137,000 137,000 179,000
Feature phones 2,000 3,000 5,000 4,000 4,000
Smartphones 128,000 121,000 97,000 98,000 132,000
Connected devices 40,000 39,000 35,000 35,000 43,000
Net additions (losses) (12,000) (19,000) (26,000) (32,000) 6,000
Feature phones (11,000) (11,000) (10,000) (13,000) (11,000)
Smartphones 13,000 9,000 (1,000) (1,000) 31,000
Connected devices (14,000) (17,000) (15,000) (18,000) (14,000)
ARPU(1) $
46.57 $
46.16 $
45.90 $
45.44 $
45.58
ARPA(2) $
120.99 $
119.87 $
119.46 $
118.84 $
119.60
Churn rate(3) 1.38 1.38 1.23 1.26 1.29
% % % % %
Handsets 1.11 1.09 0.97 0.99 1.00
% % % % %
Connected devices 3.44 3.44 3.01 3.08 3.20
% % % % %
Prepaid
Total at end of period 506,000 510,000 500,000 503,000 516,000
Gross additions 63,000 70,000 61,000 61,000 66,000
Net additions (losses) (3,000) 9,000 (2,000) (13,000) (12,000)
ARPU(1) $
34.11 $
34.35 $
34.43 $
33.44 $
32.80
Churn rate(3) 4.40 4.03 4.20 4.92 4.98
% % % % %
Total connections at end of period4 4,941,000 4,957,000 4,967,000 4,995,000 5,041,000
Market penetration at end of period
Consolidated operating population 30,740,000 31,310,000 31,310,000 31,310,000 31,469,000
Consolidated operating penetration5 16
% 16
% 16
% 16
% 16
%
Capital expenditures (millions) $
243 $
170 $
195 $
102 $
242
Total cell sites in service 6,578 6,554 6,535 6,506 6,531
Owned towers 4,166 4,123 4,116 4,106 4,129
Due to rounding, the sum of
quarterly results may not equal the
total for the year.
(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 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018
--- ---
TDS Telecom
Wireline
---
Residential connections
Voice(1) 262,100 266,100 269,000 271,100 274,100
Broadband(2) 241,300 242,200 240,200 236,100 235,400
Video(3) 58,500 57,300 56,200 54,300 54,000
Wireline residential connections 561,900 565,600 565,500 561,500 563,500
Total residential revenue per
connection4 $
49.11 $
49.02 $
47.88 $
48.16 $
47.39
Commercial connections
Voice(1) 117,800 121,200 124,200 127,300 130,500
Broadband(2) 20,400 20,600 20,600 20,400 20,600
managedIP5 121,200 124,500 128,300 132,000 134,000
Video(3) 100 400 400 400 400
Wireline commercial connections 259,600 266,600 273,500 280,100 285,400
Total Wireline connections 821,500 832,300 839,000 841,500 848,900
Cable
---
Cable residential and commercial connections
Broadband6 193,500 174,900 172,600 171,100 167,400
Video7 106,600 98,000 100,300 101,400 102,900
Voice8 69,500 63,900 64,800 65,400 65,200
managedIP5 1,300 1,200 1,100 1,100 1,000
Total Cable connections 370,900 338,000 338,900 339,000 336,500
Numbers may not foot due to rounding.
(1) The individual circuits connecting a
customer to Wireline's central office
facilities that provide voice
services.
(2) The number of Wireline customers
provided high-capacity data circuits
via various technologies, including
DSL and dedicated internet circuit
technologies.
(3) The number of Wireline customers
provided video services.
4 Total residential revenue per
connection is calculated by dividing
total Wireline residential revenue by
the average number of Wireline
residential connections and by the
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.
7 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
the building receiving service.
8 Billable number of lines into a
building for voice services.
TDS Telecom
Capital Expenditures (Unaudited)
Quarter Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018
--- ---
(Dollars in millions)
Wireline $
98 $
61 $
55 $
29 $
73
Cable 26 20 15 13 19
Total TDS
Telecom $
124 $
81 $
70 $
42 $
91
Numbers may not foot due
to rounding.
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
Year Ended
December 31, December 31,
2019 2018 2019 2019 2018 2019
vs. 2018 vs. 2018
---
(Dollars and shares in millions, except per
share amounts)
Operating revenues
U.S. Cellular $
1,052 $
1,051 - $
4,022 $
3,967 1
%
TDS Telecom 235 232 1
% 930 927 -
All Other(1) 49 49 1 224 215 4
% %
1,336 1,332 - 5,176 5,109 1
%
Operating expenses
U.S. Cellular
Expenses excluding depreciation, 871 881 (1)
amortization and accretion
% 3,190 3,177 -
Depreciation, amortization and 178 162 10 702 640 10
accretion % %
(Gain) loss on asset disposals, 6 5 18 19 10 80
net % %
(Gain) loss on sale of business
and other exit costs, net - N/M (1) N/M
(Gain) loss on license sales and - N/M (18) 98
exchanges, net %
1,055 1,048 1 3,910 3,809 3
% %
TDS Telecom
Expenses excluding depreciation, 162 159 2 629 624 1
amortization and accretion % %
Depreciation, amortization and 51 52 (2) 200 212 (5)
accretion
% %
(Gain) loss on asset disposals, - 77
net % (7) (2) N/M
213 211 1 823 834 (1)
%
%
All Other(1)
Expenses excluding depreciation 53 53 - 235 229 2
and amortization %
Depreciation and amortization 7 8 (8) 30 31 (5)
% %
(Gain) loss on asset disposals,
net - N/M 1 N/M
60 60 (1)
%
% 264 261 1
Total operating expenses 1,328 1,319 1 4,997 4,904 2
% %
Operating income (loss)
U.S. Cellular (3) 3 N/M 112 158 (29)
%
TDS Telecom 21 22 (3)
%
% 107 93 15
All Other(1) (11) (12) 10 (40) (46) 12
% %
8 13 (41) 179 205 (13)
% %
Investment and other income (expense)
Equity in earnings of 39 39 (2)
unconsolidated entities %
% 168 160 5
Interest and dividend income 5 8 (39)
%
% 29 26 15
Interest expense (37) (43) 15 (165) (172) 4
% %
Other, net (1) 1 (71)
% 2 N/M
Total investment and other 6 5 38 32 16 92
income (expense) % %
Income before income taxes 14 18 (19) 211 221 (5)
% %
Income tax expense (benefit) (1) (2) 75 64 46 37
% %
Net income 15 20 (25) 147 175 (16)
% %
Less: Net income attributable to 3 4 (17) 26 40 (36)
noncontrolling interests, net
of tax % %
Net income attributable to TDS $
12 $
16 (27) $
121 $
135 (10)
shareholders
% %
Basic weighted average shares 115 113 1 114 112 2
outstanding % %
Basic earnings per share $
0.10 $
0.14 (28) $
1.06 $
1.20 (11)
attributable to TDS
shareholders % %
Diluted weighted average shares 116 115 - 116 114 2
outstanding %
Diluted earnings per share $
0.10 $
0.14 (28) $
1.03 $
1.17 (12)
attributable to TDS
shareholders % %
N/M -Percentage change not meaningful.
Numbers may not foot due to rounding.
(1) Consists of TDS corporate,
intercompany eliminations and all
other business operations not
included in the U.S. Cellular and
TDS Telecom segments.
Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31, 2019 2018
--- ---
(Dollars in millions)
Cash flows from operating activities
Net income $
147 $
175
Add (deduct) adjustments to reconcile net income
to net cash flows from operating activities
Depreciation, amortization and
accretion 932 883
Bad debts expense 112 101
Stock-based compensation expense 59 54
Deferred income taxes, net 34 33
Equity in earnings of
unconsolidated entities (168) (160)
Distributions from unconsolidated
entities 162 153
(Gain) loss on asset disposals,
net 12 9
(Gain) loss on sale of business
and other exit costs, net (1)
(Gain) loss on license sales and
exchanges, net - (18)
Other operating activities 4 4
Changes in assets and liabilities from
operations
Accounts receivable (49) (39)
Equipment installment plans
receivable (97) (149)
Inventory (19) (5)
Accounts payable (60) 2
Customer deposits and deferred
revenues (9) 8
Accrued taxes (17) (29)
Other assets and liabilities (26) (5)
Net cash provided by operating
activities 1,016 1,017
Cash flows from investing activities
Cash paid for additions to
property, plant and equipment (957) (776)
Cash paid for acquisitions and
licenses (346) (16)
Cash received from investments 29 100
Cash paid for investments (11) (17)
Cash received from divestitures
and exchanges 41 29
Other investing activities (5)
Net cash used in investing
activities (1,249) (680)
Cash flows from financing activities
Repayment of long-term debt (118) (20)
TDS Common Shares reissued for
benefit plans, net of tax
payments (6) 42
U.S. Cellular Common Shares
reissued for benefit plans, net
of tax payments (9) 18
Repurchase of U.S. Cellular Common
Shares (21)
Dividends paid to TDS shareholders (75) (72)
Distributions to noncontrolling
interests (4) (6)
Other financing activities 13 6
Net cash used in financing
activities (220) (32)
Net increase (decrease) in cash,
cash equivalents and restricted
cash (453) 305
Cash, cash equivalents and restricted cash
Beginning of period 927 622
End of period $
474 $
927
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
December 31, 2019(1) 2018
--- ---
(Dollars in millions)
Current assets
Cash and cash equivalents $
465 $
921
Short-term investments - 17
Accounts receivable 1,124 1,099
Inventory, net 169 150
Prepaid expenses 98 103
Income taxes receivable 36 12
Other current assets 29 28
Total current assets 1,921 2,330
Assets held for sale - 54
Licenses 2,480 2,195
Goodwill 547 509
Other intangible assets,
net 239 253
Investments in
unconsolidated entities 488 480
Property, plant and
equipment, net 3,527 3,346
Operating lease right-
of-use assets 972
Other assets and deferred
charges 607 616
Total assets $
10,781 $
9,783
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
December 31, 2019(1) 2018
--- ---
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt $
10 $
21
Accounts payable 374 365
Customer deposits and deferred
revenues 189 197
Accrued interest 11 11
Accrued taxes 41 44
Accrued compensation 121 127
Short-term operating lease
liabilities 116
Other current liabilities 100 114
Total current liabilities 962 879
Liabilities held for sale - 1
Deferred liabilities and credits
Deferred income tax liability, net 676 640
Long-term operating lease
liabilities 931
Other deferred liabilities and
credits 481 541
Long-term debt, net 2,316 2,418
Noncontrolling interests with
redemption features 11 11
Equity
TDS shareholders' equity
Series A Common and Common Shares,
par value $.01 per share 1 1
Capital in excess of par value 2,468 2,432
Treasury shares, at cost (479) (519)
Accumulated other comprehensive loss (9) (10)
Retained earnings 2,672 2,656
Total TDS shareholders' equity 4,653 4,560
Noncontrolling interests 751 733
Total equity 5,404 5,293
Total liabilities and equity $
10,781 $
9,783
(1) As of January 1, 2019, TDS
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.
Balance Sheet Highlights
(Unaudited)
December 31, 2019
U.S. TDS TDS Intercompany TDS
Corporate
Cellular Telecom Eliminations Consolidated
& Other
---
(Dollars in millions)
Cash and cash
equivalents $
285 $
21 $
159
$ $
465
Affiliated cash
investments - 505 (505)
$
285 $
526 $
159 $
(505) $
465
Licenses, goodwill and
other intangible
assets $
2,471 $
783 $
12
$ $
3,266
Investment in
unconsolidated
entities 447 4 47 (10) 488
$
2,918 $
787 $
59 $
(10) $
3,754
Property, plant and
equipment, net $
2,207 $
1,211 $
109
$ $
3,527
Long-term debt, net:
Current portion $
8 $
1 $
1
$ $
10
Non-current portion 1,502 4 810 2,316
$
1,510 $
5 $
811
$ $
2,326
TDS Telecom Highlights
(Unaudited)
Three Months Ended
Year Ended
December 31, December 31,
2019 2018 2019 vs. 2019 2018 2019 vs.
2018 2018
---
(Dollars in millions)
Wireline
Operating revenues
Residential $
83 $
80 3 $
328 $
321 2
% %
Commercial 40 45 (10) 168 184 (9)
% %
Wholesale 47 48 - 186 191 (2)
%
Total service revenues 171 173 (1) 682 697 (2)
% %
Equipment and product (30) 1 2 (26)
sales
% %
171 173 (1) 683 699 (2)
% %
Operating expenses
Cost of services 68 67 2 263 266 (1)
%
%
Cost of equipment and (17) 1 1 (24)
products
% %
Selling, general and 50 51 (2)
administrative expenses %
% 199 197 1
Expenses excluding
depreciation,
amortization and
accretion 119 118 - 463 465 -
Depreciation, 33 35 (4) 132 142 (7)
amortization and
accretion % %
(Gain) loss on asset
disposals, net N/M (8) (3) N/M
153 153 - 587 604 (3)
%
Operating income $
18 $
20 (7)
%
% $
96 $
95 1
Cable
Operating revenues
Residential $
53 $
48 9 $
205 $
188 9
% %
Commercial 11 12 (5)
%
% 43 42 3
64 60 7 247 230 8
% %
Operating expenses
Cost of services 26 26 3 105 104 2
% %
Selling, general and 17 15 15 62 57 8
administrative expenses % %
Expenses excluding
depreciation, % %
amortization and
accretion 44 41 8 167 161 4
Depreciation, 17 17 1 68 69 (2)
amortization and %
accretion %
(Gain) loss on asset (46) 1 1 (48)
disposals, net
% %
61 58 5 236 231 2
% %
Operating income (loss) $
3 $
2 42
% $
11 $
(2) N/M
Total TDS Telecom $
21 $
22 (3)
operating income %
% $
107 $
93 15
N/M -Percentage change not
meaningful.
Numbers may not foot due to
rounding.
Telephone and Data Systems, Inc.
Financial Measures and Reconciliations
Free Cash Flow
Three Months Ended Year Ended
December 31,
December 31,
2019 2018 2019 2018
---
(Dollars in millions)
Cash flows
from
operating
activities
(GAAP) $
142 $
205 $
1,016 $
1,017
Less: Cash
paid for
additions
to
property,
plant and
equipment 326 330 957 776
Free cash
flow (Non-
GAAP)(1) $
(184) $
(125) $
59 $
241
(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.
EBITDA, Adjusted EBITDA and Adjusted OIBDA
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes.
Three Months Ended
Year Ended
December 31, December 31,
TDS(1) 2019 2018 2019 2018
---
(Dollars in millions)
Net income (GAAP) $
15 $
20 $
147 $
175
Add back or deduct:
Income tax benefit (1) (2) 64 46
Income before income taxes
(GAAP) 14 18 211 221
Add back:
Interest expense 37 43 165 172
Depreciation, amortization
and accretion expense 236 222 932 883
EBITDA (Non-GAAP) 287 283 1,308 1,276
Add back or deduct:
(Gain) loss on asset
disposals, net 6 5 12 9
(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) 293 288 1,319 1,267
Deduct:
Equity in earnings of
unconsolidated entities 39 39 168 160
Interest and dividend
income 5 8 29 26
Other, net (1) 1 2
Adjusted OIBDA (Non-GAAP) $
250 $
240 $
1,122 $
1,079
(1) Includes U.S. Cellular, TDS
Telecom and also the impacts of
consolidating eliminations,
corporate operations and non-
reportable segments.
View original content:http://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2019-results-301008723.html
SOURCE Telephone and Data Systems, Inc.
