TDS reports first quarter 2020 results
CHICAGO, April 30, 2020 /PRNewswire/ --
As previously announced, TDS will hold a teleconference May 1, 2020, at 9:00 a.m. CDT. 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 $1,261 million for the first quarter of 2020, versus $1,257 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $69 million and $0.59, respectively, for the first quarter of 2020 compared to $59 million and $0.50, respectively, in the same period one year ago.
"The TDS Enterprise and its family of companies remain strong in this time of the COVID-19 pandemic and great economic uncertainty," said LeRoy T. Carlson, Jr., TDS President and CEO. "We are continuing to provide critical communications and data services that our customers and communities, especially in underserved areas, depend on. U.S. Cellular and TDS Telecom have risen to meet the business challenges of this national health crisis, by putting people - our associates, their families and our customers - first, and by keeping our operations and networks performing at very high levels.
"U.S. Cellular continues to provide high-quality wireless connectivity. The majority of our stores remain open, with modified store hours, and safety measures including social distancing implemented. Most of our customer care center employees are now working from home, while still maintaining the exceptional service U.S. Cellular is known for. U.S. Cellular is successfully meeting increased demands for capacity on its network, with both data and voice traffic increasing. Our network modernization program continues, adding capacity and speed, launching 5G services commercially, and preparing for remaining VoLTE deployments. U.S. Cellular's financial results this quarter were solid, including a tax benefit resulting from the CARES Act, partially offset by an incremental allowance to cover anticipated higher levels of bad debt. There may be near-term impacts from the pandemic, including lower store traffic and customer growth. Our number one priority is to continue to adapt to meet the wireless needs of the communities and customers we serve. At the same time, we are planning for the return to a more stable future environment and continuing to execute on our strategic priorities.
"TDS Telecom is experiencing strong demand for wired broadband services as many customers work from home. At this time TDS Telecom is successfully meeting the significant demand for higher speeds as well as increased network capacity across its footprint. To keep customers and field service technicians safe, procedures have been implemented to minimize the amount of work technicians do within the home and we are using self-service and remote assistance techniques to complete both installs and repairs. TDS Telecom continues to move forward with fiber deployment in our out-of-territory expansion markets.
"At TDS, we have a good financial foundation. We continue to maintain a strong balance sheet with ample liquidity. We closely monitor leading indicators like customer receipts and accounts receivable aging. We have enhanced our liquidity position to provide near term capital spending."
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 April 30, 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, especially in light of the uncertainty created by the COVID-19 pandemic.
2020 Estimated Results
U.S. Cellular
Previous
Current
--- ---
(Dollars in millions)
Service revenues
$3,000-$3,100
Unchanged
Adjusted OIBDA(1)
$775-$900
$725-$850
Adjusted EBITDA(1)
$950-$1,075
$900-$1,025
Capital expenditures
$850-$950
Unchanged
TDS Telecom
Previous
Current
--- ---
(Dollars in millions)
Total operating revenues
$950-$1,000
Unchanged
Adjusted OIBDA(1)
$280-$310
Unchanged
Adjusted EBITDA(1)
$290-$320
Unchanged
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 three months ended March 31, 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
U.S.
Cellular 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)
$80-$205
$80-$110
Add back:
Interest expense 110
Depreciation,
amortization and
accretion
expense 690 210
EBITDA (Non-
GAAP)(1)
$880-$1,005
$290-$320
Add back or
deduct:
(Gain) loss on
asset disposals,
net 20
Adjusted EBITDA
(Non-GAAP)(1)
$900-$1,025
$290-$320
Deduct:
Equity in
earnings of
unconsolidated
entities 165
Interest and
dividend income 10 10
Adjusted OIBDA
(Non-GAAP)(1)
$725-$850
$280-$310
Actual Results
Three Months Ended Year Ended
March 31, 2020 December 31, 2019
U.S. TDS U.S. TDS
Cellular Telecom Cellular Telecom
(Dollars in millions)
Net income (GAAP) $
72 $
28 $
133 $
92
Add back:
Income tax expense 4 4 52 30
Income before income taxes
(GAAP) $
76 $
31 $
185 $
122
Add back:
Interest expense 24 (1) 110 (3)
Depreciation, amortization
and accretion expense 177 52 702 200
EBITDA (Non-GAAP)(1) $
277 $
82 $
997 $
320
Add back or deduct:
(Gain) loss on asset
disposals, net 4 19 (7)
(Gain) loss on sale of
business and other exit
costs, net (1)
Adjusted EBITDA (Non-
GAAP)(1) $
281 $
82 $
1,015 $
313
Deduct:
Equity in earnings of
unconsolidated entities 45 166
Interest and dividend
income 4 2 17 12
Other, net 1
Adjusted OIBDA (Non-
GAAP)(1) $
231 $
80 $
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 March 31, 2020, can be found on TDS' website at
investors.tdsinc.com.
Conference Call Information
TDS will hold a conference call on May 1, 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/1145/34504
-- Access the call by phone at (833) 968-2187, conference ID: 1267888.
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 March 31, 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 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.
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 recent 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 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
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 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019
--- ---
Retail Connections
Postpaid
Total at end of period 4,359,000 4,383,000 4,395,000 4,414,000 4,440,000
Gross additions 132,000 170,000 163,000 137,000 137,000
Feature phones 2,000 2,000 3,000 5,000 4,000
Smartphones 88,000 128,000 121,000 97,000 98,000
Connected devices 42,000 40,000 39,000 35,000 35,000
Net additions (losses) (26,000) (12,000) (19,000) (26,000) (32,000)
Feature phones (10,000) (11,000) (11,000) (10,000) (13,000)
Smartphones (10,000) 13,000 9,000 (1,000) (1,000)
Connected devices (6,000) (14,000) (17,000) (15,000) (18,000)
ARPU(1) $
47.23 $
46.57 $
46.16 $
45.90 $
45.44
ARPA(2) $
122.92 $
120.99 $
119.87 $
119.46 $
118.84
Churn rate(3) 1.21 1.38 1.38 1.23 1.26
% % % % %
Handsets 0.95 1.11 1.09 0.97 0.99
% % % % %
Connected devices 3.11 3.44 3.44 3.01 3.08
% % % % %
Prepaid
Total at end of period 494,000 506,000 510,000 500,000 503,000
Gross additions 57,000 63,000 70,000 61,000 61,000
Net additions (losses) (12,000) (3,000) 9,000 (2,000) (13,000)
ARPU(1) $
34.07 $
34.11 $
34.35 $
34.43 $
33.44
Churn rate(3) 4.67 4.40 4.03 4.20 4.92
% % % % %
Total connections at end of period4 4,903,000 4,941,000 4,957,000 4,967,000 4,995,000
Market penetration at end of period
Consolidated operating population 31,292,000 30,740,000 31,310,000 31,310,000 31,310,000
Consolidated operating penetration5 16
% 16
% 16
% 16
% 16
%
Capital expenditures (millions) $
236 $
243 $
170 $
195 $
102
Total cell sites in service 6,629 6,578 6,554 6,535 6,506
Owned towers 4,184 4,166 4,123 4,116 4,106
(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 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019
--- ---
TDS Telecom
Wireline
---
Residential connections
Voice(1) 259,100 262,100 266,100 269,000 271,100
Broadband(2) 242,700 241,300 242,200 240,200 236,100
Video(3) 59,000 58,500 57,300 56,200 54,300
Wireline residential connections 560,700 561,900 565,600 565,500 561,500
Total residential revenue per
connection4 $
50.12 $
49.11 $
49.02 $
47.88 $
48.16
Commercial connections
Voice(1) 114,400 117,800 121,200 124,200 127,300
Broadband(2) 20,500 20,400 20,600 20,600 20,400
managedIP5 118,300 121,200 124,500 128,300 132,000
Video(3) 100 100 400 400 400
Wireline commercial connections 253,400 259,600 266,600 273,500 280,100
Total Wireline connections 814,200 821,500 832,300 839,000 841,500
Cable
---
Cable residential and commercial connections
Broadband6 196,800 193,500 174,900 172,600 171,100
Video7 105,100 106,600 98,000 100,300 101,400
Voice8 68,900 69,500 63,900 64,800 65,400
managedIP5 1,400 1,300 1,200 1,100 1,100
Total Cable connections 372,300 370,900 338,000 338,900 339,000
Numbers may not foot due to rounding.
(1) The individual circuits connecting a
customer to Wireline's central office
facilities that provide voice services.
(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 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019
--- ---
(Dollars in millions)
Wireline $
39 $
98 $
61 $
55 $
29
Cable 15 26 20 15 13
Total TDS Telecom $
54 $
124 $
81 $
70 $
42
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
March 31,
2020 2019 2020
vs. 2019
---
(Dollars and shares in millions, except per
share amounts)
Operating revenues
U.S. Cellular $
963 $
966 -
TDS Telecom 240 230 4
%
All Other(1) 58 61 (5)
%
1,261 1,257 -
Operating expenses
U.S. Cellular
Expenses excluding depreciation,
amortization and accretion 732 735 -
Depreciation, amortization and 177 169 5
accretion
%
(Gain) loss on asset disposals, 4 2 72
net
%
(Gain) loss on sale of business
and other exit costs, net - (2) N/M
(Gain) loss on license sales and
exchanges, net - (2) N/M
913 902 1
%
TDS Telecom
Expenses excluding depreciation, 160 150 7
amortization and accretion
%
Depreciation, amortization and 52 50 2
accretion
%
(Gain) loss on asset disposals,
net - (7) N/M
212 193 10
%
All Other(1)
Expenses excluding depreciation 58 60 (4)
and amortization
%
Depreciation and amortization 6 8 (23)
%
64 68 (6)
%
Total operating expenses 1,189 1,163 2
%
Operating income (loss)
U.S. Cellular 50 64 (22)
%
TDS Telecom 28 37 (23)
%
All Other(1) (6) (7) 10
%
72 94 (23)
%
Investment and other income (expense)
Equity in earnings of 45 44 3
unconsolidated entities
%
Interest and dividend income 6 9 (30)
%
Interest expense (37) (43) 14
%
Total investment and other 14 10 41
income
%
Income before income taxes 86 104 (17)
%
Income tax expense 3 34 (89)
%
Net income 83 70 18
%
Less: Net income attributable to 14 11 25
noncontrolling interests, net
of tax %
Net income attributable to TDS $
69 $
59 17
shareholders
%
Basic weighted average shares 115 114 1
outstanding
%
Basic earnings per share $
0.60 $
0.52 16
attributable to TDS
shareholders %
Diluted weighted average shares
outstanding 116 116 -
Diluted earnings per share $
0.59 $
0.50 17
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)
Three Months Ended
March 31,
2020 2019
---
(Dollars in millions)
Cash flows from operating activities
Net income $
83 $
70
Add (deduct) adjustments to reconcile net income
to net cash flows from operating activities
Depreciation, amortization and
accretion 235 227
Bad debts expense 34 25
Stock-based compensation expense 11 13
Deferred income taxes, net 75 25
Equity in earnings of
unconsolidated entities (45) (44)
Distributions from unconsolidated
entities 25 19
(Gain) loss on asset disposals,
net 4 (5)
(Gain) loss on sale of business
and other exit costs, net - (2)
(Gain) loss on license sales and
exchanges, net - (2)
Other operating activities - 1
Changes in assets and liabilities from
operations
Accounts receivable 43 28
Equipment installment plans
receivable 23 (10)
Inventory (52) (15)
Accounts payable 87 46
Customer deposits and deferred
revenues (9) 5
Accrued taxes (74) 9
Accrued interest 9 11
Other assets and liabilities (82) (74)
Net cash provided by operating
activities 367 327
Cash flows from investing activities
Cash paid for additions to
property, plant and equipment (377) (155)
Cash paid for licenses (26) (1)
Cash received from investments - 2
Cash paid for investments (1) (1)
Cash received from divestitures
and exchanges - 31
Advance payments for license
acquisitions - (135)
Net cash used in investing
activities (404) (259)
Cash flows from financing activities
Issuance of long-term debt 50
Repayment of long-term debt (2) (5)
TDS Common Shares reissued for
benefit plans, net of tax
payments (1) (3)
U.S. Cellular Common Shares
reissued for benefit plans, net
of tax payments - (1)
Repurchase of TDS Common Shares (6)
Repurchase of U.S. Cellular Common
Shares (21)
Dividends paid to TDS shareholders (19) (19)
Distributions to noncontrolling
interests (1) (1)
Other financing activities (3)
Net cash used in financing
activities (3) (29)
Net increase (decrease) in cash,
cash equivalents and restricted
cash (40) 39
Cash, cash equivalents and restricted cash
Beginning of period 474 927
End of period $
434 $
966
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
March 31, 2020 December 31, 2019
---
(Dollars in millions)
Current assets
Cash and cash equivalents $
421 $
465
Accounts receivable, net 1,052 1,124
Inventory, net 218 169
Prepaid expenses 115 98
Income taxes receivable 111 36
Other current assets 33 29
Total current assets 1,950 1,921
Licenses 2,511 2,480
Goodwill 547 547
Other intangible assets,
net 232 239
Investments in
unconsolidated entities 509 488
Property, plant and
equipment, net 3,595 3,527
Operating lease right-
of-use assets 975 972
Other assets and deferred
charges 576 607
Total assets $
10,895 $
10,781
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
March 31, 2020 December 31, 2019
---
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt $
8 $
10
Accounts payable 378 374
Customer deposits and deferred
revenues 181 189
Accrued interest 19 11
Accrued taxes 38 41
Accrued compensation 77 121
Short-term operating lease
liabilities 121 116
Other current liabilities 78 100
Total current liabilities 900 962
Deferred liabilities and credits
Deferred income tax liability, net 750 676
Long-term operating lease
liabilities 929 931
Other deferred liabilities and
credits 491 481
Long-term debt, net 2,365 2,316
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 2,489 2,468
Treasury shares, at cost (480) (479)
Accumulated other comprehensive loss (8) (9)
Retained earnings 2,718 2,672
Total TDS shareholders' equity 4,720 4,653
Noncontrolling interests 729 751
Total equity 5,449 5,404
Total liabilities and equity $
10,895 $
10,781
Balance Sheet Highlights
(Unaudited)
March 31, 2020
U.S. TDS TDS Intercompany TDS
Corporate
Cellular Telecom & Other Eliminations Consolidated
---
(Dollars in millions)
Cash and cash
equivalents $
258 $
26 $
137
$ $
421
Affiliated cash
investments - 488 (488)
$
258 $
514 $
137 $
(488) $
421
Licenses, goodwill and
other intangible
assets $
2,502 $
778 $
10
$ $
3,290
Investment in
unconsolidated
entities 469 4 46 (10) 509
$
2,971 $
782 $
56 $
(10) $
3,799
Property, plant and
equipment, net $
2,268 $
1,222 $
105
$ $
3,595
Long-term debt, net:
Current portion $
6 $
1 $
1
$ $
8
Non-current portion 1,503 4 858 2,365
$
1,509 $
5 $
859
$ $
2,373
TDS Telecom Highlights
(Unaudited)
Three Months Ended
March 31,
2020 2019 2020 vs. 2019
(Dollars in millions)
Wireline
Operating revenues
Residential $
84 $
81 4
%
Commercial 39 43 (10)
%
Wholesale 46 46 -
Total service revenues 169 170 (1)
%
Equipment and product (43)
sales
%
169 171 (1)
%
Operating expenses
Cost of services 65 63 4
%
Cost of equipment and (46)
products
%
Selling, general and 48 47 3
administrative expenses %
Expenses excluding
depreciation, %
amortization and
accretion 114 110 3
Depreciation, 32 34 (4)
amortization and
accretion %
(Gain) loss on asset
disposals, net (7) N/M
146 136 7
%
Operating income $
23 $
34 (32)
%
Cable
Operating revenues
Residential $
60 $
49 20
%
Commercial 11 10 11
%
71 60 19
%
Operating expenses
Cost of services 30 26 17
%
Selling, general and 17 14 16
administrative expenses %
Expenses excluding
depreciation, %
amortization and
accretion 47 40 17
Depreciation,
amortization and %
accretion 19 17 15
(Gain) loss on asset (87)
disposals, net
%
66 57 15
%
Operating income (loss) $
5 $
2 N/M
Total TDS Telecom $
28 $
37 (23)
operating income
%
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
March 31,
2020 2019
---
(Dollars in millions)
Cash flows
from
operating
activities
(GAAP) $
367 $
327
Less: Cash
paid for
additions
to
property,
plant and
equipment 377 155
Free cash
flow (Non-
GAAP)(1) $
(10) $
172
(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-first-quarter-2020-results-301050525.html
SOURCE Telephone and Data Systems, Inc.
