TDS reports second quarter 2020 results
CHICAGO, Aug. 6, 2020 /PRNewswire/ --
As previously announced, TDS will hold a teleconference August 7, 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 $1,263 million for the second quarter of 2020, versus $1,261 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $65 million and $0.56, respectively, for the second quarter of 2020 compared to $33 million and $0.28, respectively, in the same period one year ago.
"The TDS Enterprise and its family of companies remains strong through the ongoing challenges of the COVID-19 pandemic," said LeRoy T. Carlson, Jr., TDS President and CEO. "U.S. Cellular and TDS Telecom continue to provide essential communication and high-quality data services to our customers and communities. Our associates have shown exceptional dedication and resiliency in keeping our operations and networks performing at top levels. TDS also is maintaining a strong and flexible financial foundation.
"At U.S. Cellular, LT Therivel has moved seamlessly into his new role as CEO. He is focused on observing, learning and understanding all facets of the organization, meeting with U.S. Cellular associates and identifying new opportunities and ways to accelerate growth. I am confident LT's leadership, experience and collaborative style will build upon the many successes that U.S. Cellular has already achieved. U.S. Cellular's top priority remains to continuously adapt to fully meet the wireless needs of the communities and customers we serve. Despite COVID-19, most U.S. Cellular stores are now open and they continue to follow strong safety measures to keep our customers and associates safe. Exceptionally low levels of churn have offset lower store traffic and enabled U.S. Cellular to increase smartphone connections in the quarter. Our network modernization program continues, adding capacity and speed, launching 5G services commercially, and preparing for remaining VoLTE deployments. In these unprecedented times, our high-quality network has remained strong. I am pleased U.S. Cellular ranked #1 in the North Central Region in the J.D. Power 2020 Wireless Network Quality Performance Study.
"TDS Telecom continues to successfully meet significant demand for higher data speeds and increased network capacity across its footprint. Growth in Wireline 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. TDS Telecom continues to move forward with fiber deployment in out-of-territory expansion markets. A total of 25,000 service addresses in the out-of-territory markets were added in the first half of the year increasing total fiber service addresses to 265,000. In rolling out new markets, the safety of our customers, field service technicians and sales representatives remains a top priority. We have implemented our safety procedures that minimize the amount of work technicians do within the home through encouraging self-service and remote customer assistance techniques."
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 August 6, 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)
$725-$850
Unchanged
Adjusted EBITDA(1)
$900-$1,025
Unchanged
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 six months ended June 30, 2020, and actual results for the year ended December 31, 2019. In providing 2020 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.
2020 Estimated Results
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)
$95-$220
$80-$110
Add back:
Interest expense 100
Depreciation,
amortization
and accretion
expense 685 210
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
Six Months Ended Year Ended
June 30, 2020 December 31, 2019
U.S. TDS U.S. TDS
Cellular Telecom Cellular Telecom
(Dollars in millions)
Net income (GAAP) $
141 $
56 $
133 $
92
Add back:
Income tax expense 8 8 52 30
Income before income taxes
(GAAP) $
149 $
64 $
185 $
122
Add back:
Interest expense 49 (2) 110 (3)
Depreciation, amortization
and accretion expense 354 103 702 200
EBITDA (Non-GAAP)(1) $
552 $
165 $
997 $
320
Add back or deduct:
(Gain) loss on asset
disposals, net 8 19 (7)
(Gain) loss on sale of
business and other exit
costs, net (1)
Adjusted EBITDA (Non-
GAAP)(1) $
560 $
165 $
1,015 $
313
Deduct:
Equity in earnings of
unconsolidated entities 89 166
Interest and dividend
income 5 4 17 12
Other, net (1)
Adjusted OIBDA (Non-
GAAP)(1) $
466 $
162 $
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 June 30, 2020, can be found on TDS' website at
investors.tdsinc.com.
Conference Call Information
TDS will hold a conference call on August 7, 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/1145/36390.
-- Access the call by phone at (833) 968-2187, conference ID: 3255207.
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 9,300 people as of June 30, 2020.
Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the impact, duration and severity of the COVID-19 pandemic; intense competition; the ability to execute TDS' business strategy; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and U.S. Cellular indebtedness or comply with the terms of debt covenants; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the state and federal regulatory environment; the ability to attract people of outstanding talent throughout all levels of the organization; conditions in the U.S. telecommunications industry; TDS' smaller scale relative to larger competitors; changes in demand, consumer preferences, price competition, or churn rates; advances in technology; the value of assets and investments; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or licenses and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; cyber-attacks or other breaches of network or information technology security; changes in facts and circumstances that could require TDS to record adjustments to amounts reflected in the financial statements; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; pending and future litigation. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.
The impact of the COVID-19 pandemic on TDS' business is uncertain, but depending on its duration and severity it could have a material adverse effect on TDS' business, financial condition or results of operations.
The impact of the 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 an adequate supply chain and execute on its business strategies and initiatives could be negatively impacted by this outbreak. Additionally, COVID-19 has caused and could continue to cause increased unemployment, economic downturn and credit market deterioration, all of which could negatively impact TDS. The extent of the impact of COVID-19 on TDS' business, financial condition and results of operations will depend on future circumstances, including the severity of the disease, the duration of the outbreak, actions taken by governmental authorities and other possible direct and indirect consequences, all of which are uncertain and cannot be predicted.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
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 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019
--- ---
Retail Connections
Postpaid
Total at end of period 4,372,000 4,359,000 4,383,000 4,395,000 4,414,000
Gross additions 129,000 132,000 170,000 163,000 137,000
Feature phones 3,000 2,000 2,000 3,000 5,000
Smartphones 82,000 88,000 128,000 121,000 97,000
Connected devices 44,000 42,000 40,000 39,000 35,000
Net additions (losses) 12,000 (26,000) (12,000) (19,000) (26,000)
Feature phones (8,000) (10,000) (11,000) (11,000) (10,000)
Smartphones 11,000 (10,000) 13,000 9,000 (1,000)
Connected devices 9,000 (6,000) (14,000) (17,000) (15,000)
ARPU(1) $
46.24 $
47.23 $
46.57 $
46.16 $
45.90
ARPA(2) $
120.70 $
122.92 $
120.99 $
119.87 $
119.46
Churn rate(3) 0.89 1.21 1.38 1.38 1.23
% % % % %
Handsets 0.71 0.95 1.11 1.09 0.97
% % % % %
Connected devices 2.24 3.11 3.44 3.44 3.01
% % % % %
Prepaid
Total at end of period 496,000 494,000 506,000 510,000 500,000
Gross additions 62,000 57,000 63,000 70,000 61,000
Net additions (losses) 2,000 (12,000) (3,000) 9,000 (2,000)
ARPU(1) $
34.89 $
34.07 $
34.11 $
34.35 $
34.43
Churn rate(3) 4.05 4.67 4.40 4.03 4.20
% % % % %
Total connections at end of period4 4,919,000 4,903,000 4,941,000 4,957,000 4,967,000
Market penetration at end of period
Consolidated operating population 31,292,000 31,292,000 30,740,000 31,310,000 31,310,000
Consolidated operating penetration5 16
% 16
% 16
% 16
% 16
%
Capital expenditures (millions) $
168 $
236 $
243 $
170 $
195
Total cell sites in service 6,673 6,629 6,578 6,554 6,535
Owned towers 4,208 4,184 4,166 4,123 4,116
(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 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019
--- ---
TDS Telecom
Wireline
---
Residential connections
Voice(1) 261,800 259,100 262,100 266,100 269,000
Broadband(2) 255,100 242,700 241,300 242,200 240,200
Video(3) 61,400 59,000 58,500 57,300 56,200
Wireline residential connections 578,300 560,700 561,900 565,600 565,500
Total residential revenue per
connection4 $
49.73 $
50.12 $
49.11 $
49.02 $
47.88
Commercial connections
Voice(1) 112,400 114,400 117,800 121,200 124,200
Broadband(2) 20,700 20,500 20,400 20,600 20,600
managedIP5 115,500 118,300 121,200 124,500 128,300
Video(3) 200 100 100 400 400
Wireline commercial connections 248,700 253,400 259,600 266,600 273,500
Total Wireline connections 827,000 814,200 821,500 832,300 839,000
Cable
---
Cable residential and commercial connections
Broadband6 203,700 196,800 193,500 174,900 172,600
Video7 103,400 105,100 106,600 98,000 100,300
Voice8 69,000 68,900 69,500 63,900 64,800
managedIP5 1,800 1,400 1,300 1,200 1,100
Total Cable connections 378,000 372,300 370,900 338,000 338,900
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 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019
--- ---
(Dollars in millions)
Wireline $
58 $
39 $
98 $
61 $
55
Cable 17 15 26 20 15
Total TDS
Telecom $
75 $
54 $
124 $
81 $
70
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
Six Months Ended
June 30, June 30,
2020 2019 2020 2020 2019 2020
vs. 2019 vs. 2019
---
(Dollars and shares in millions, except per
share amounts)
Operating revenues
U.S. Cellular $
973 $
973 - $
1,937 $
1,939 -
TDS Telecom 241 233 3 481 464 4
% %
All Other(1) 49 55 (10) 106 115 (7)
% %
1,263 1,261 - 2,524 2,518 -
Operating expenses
U.S. Cellular
Expenses excluding depreciation, 738 761 (3) 1,471 1,496 (2)
amortization and accretion
% %
Depreciation, amortization and 178 177 1 354 345 3
accretion % %
(Gain) loss on asset disposals, 4 5 (19)
net %
% 8 7 7
(Gain) loss on sale of business
and other exit costs, net - N/M (2) N/M
(Gain) loss on license sales and
exchanges, net - N/M (2) N/M
920 943 (2) 1,833 1,844 (1)
% %
TDS Telecom
Expenses excluding depreciation, 158 155 2 319 305 4
amortization and accretion % %
Depreciation, amortization and 51 50 3 103 100 3
accretion % %
(Gain) loss on asset disposals,
net - (1) N/M (8) N/M
210 204 3 422 398 6
% %
All Other(1)
Expenses excluding depreciation 49 58 (16) 105 119 (10)
and amortization
% %
Depreciation and amortization 7 7 (22) 13 15 (23)
% %
(Gain) loss on asset disposals,
net - 1 N/M 1 N/M
55 66 (17) 118 134 (11)
% %
Total operating expenses 1,185 1,213 (2)
% 2,373 2,376 -
Operating income (loss)
U.S. Cellular 53 30 74 104 95 9
% %
TDS Telecom 31 29 6 59 66 (10)
%
%
All Other(1) (6) (11) 51 (12) (19) 35
% %
78 48 63 151 142 6
% %
Investment and other income (expense)
Equity in earnings of 44 41 8 90 85 5
unconsolidated entities % %
Interest and dividend income 2 9 (76) 8 17 (53)
% %
Interest expense (38) (43) 10 (75) (86) 12
% %
Other, net - 59 (1) 1 (57)
%
%
Total investment and other 8 7 22 22 17 34
income % %
Income before income taxes 86 55 58 173 159 9
% %
Income tax expense 8 16 (47) 12 50 (76)
% %
Net income 78 39 N/M 161 109 47
%
Less: Net income attributable to 13 6 100
noncontrolling interests, net %
of tax % 26 17 53
Net income attributable to TDS $
65 $
33 N/M $
135 $
92 46
shareholders %
Basic weighted average shares
outstanding 114 114 - 115 114 -
Basic earnings per share
attributable to TDS %
shareholders $
0.57 $
0.29 N/M $
1.18 $
0.81 46
Diluted weighted average shares 115 116 (1)
outstanding
% 115 116 -
Diluted earnings per share
attributable to TDS %
shareholders $
0.56 $
0.28 N/M $
1.15 $
0.78 47
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)
Six Months Ended
June 30,
2020 2019
---
(Dollars in millions)
Cash flows from operating activities
Net income $
161 $
109
Add (deduct) adjustments to reconcile net income
to net cash flows from operating activities
Depreciation, amortization and
accretion 470 460
Bad debts expense 48 50
Stock-based compensation expense 25 33
Deferred income taxes, net 150 40
Equity in earnings of
unconsolidated entities (90) (85)
Distributions from unconsolidated
entities 91 76
(Gain) loss on asset disposals,
net 8
(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 3
Changes in assets and liabilities from
operations
Accounts receivable 21 (2)
Equipment installment plans
receivable 22 (11)
Inventory 15 (4)
Accounts payable 49 (9)
Customer deposits and deferred
revenues (8) 8
Accrued taxes (115) 2
Accrued interest 2
Other assets and liabilities (42) (76)
Net cash provided by operating
activities 806 592
Cash flows from investing activities
Cash paid for additions to
property, plant and equipment (610) (393)
Cash paid for licenses (144) (255)
Cash received from investments 1 11
Cash paid for investments (1) (11)
Cash received from divestitures
and exchanges 1 32
Advance payments for license
acquisitions (16)
Net cash used in investing
activities (769) (616)
Cash flows from financing activities
Issuance of long-term debt 175
Repayment of long-term debt (5) (11)
TDS Common Shares reissued for
benefit plans, net of tax
payments (3) (6)
U.S. Cellular Common Shares
reissued for benefit plans, net
of tax payments (8) (8)
Repurchase of TDS Common Shares (14)
Repurchase of U.S. Cellular Common
Shares (23)
Dividends paid to TDS shareholders (39) (38)
Payment of debt issuance costs (7)
Distributions to noncontrolling
interests (1) (2)
Other financing activities 3
Net cash provided by (used in)
financing activities 75 (62)
Net increase (decrease) in cash,
cash equivalents and restricted
cash 112 (86)
Cash, cash equivalents and restricted cash
Beginning of period 474 927
End of period $
586 $
841
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
June 30, 2020 December 31,
2019
---
(Dollars in millions)
Current assets
Cash and cash equivalents $
565 $
465
Accounts receivable, net 1,064 1,124
Inventory, net 152 169
Prepaid expenses 106 98
Income taxes receivable 160 36
Other current assets 39 29
Total current assets 2,086 1,921
Licenses 2,630 2,480
Goodwill 547 547
Other intangible assets,
net 226 239
Investments in
unconsolidated entities 486 488
Property, plant and
equipment, net 3,615 3,527
Operating lease right-
of-use assets 985 972
Other assets and deferred
charges 586 607
Total assets $
11,161 $
10,781
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
June 30, 2020 December 31, 2019
---
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt $
5 $
10
Accounts payable 349 374
Customer deposits and deferred
revenues 181 189
Accrued interest 11 11
Accrued taxes 41 41
Accrued compensation 85 121
Short-term operating lease
liabilities 124 116
Other current liabilities 86 100
Total current liabilities 882 962
Deferred liabilities and credits
Deferred income tax liability, net 825 676
Long-term operating lease
liabilities 938 931
Other deferred liabilities and
credits 515 481
Long-term debt, net 2,487 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 2,472 2,468
Treasury shares, at cost (479) (479)
Accumulated other comprehensive loss (7) (9)
Retained earnings 2,751 2,672
Total TDS shareholders' equity 4,738 4,653
Noncontrolling interests 765 751
Total equity 5,503 5,404
Total liabilities and equity $
11,161 $
10,781
Balance Sheet Highlights
(Unaudited)
June 30, 2020
U.S. TDS TDS Corporate Intercompany TDS
Cellular Telecom & Other Eliminations Consolidated
---
(Dollars in millions)
Cash and cash
equivalents $
418
$ $
147
$ $
565
Affiliated cash
investments - 550 (550)
$
418 $
550 $
147 $
(550) $
565
Licenses, goodwill and
other intangible
assets $
2,621 $
772 $
10
$ $
3,403
Investment in
unconsolidated
entities 445 4 47 (10) 486
$
3,066 $
776 $
57 $
(10) $
3,889
Property, plant and
equipment, net $
2,258 $
1,253 $
104
$ $
3,615
Long-term debt, net:
Current portion $
4 $
1 $
1
$ $
5
Non-current portion 1,625 4 858 2,487
$
1,629 $
4 $
859
$ $
2,492
Numbers may not foot due
to rounding.
TDS Telecom Highlights
(Unaudited)
Three Months Ended
Six Months Ended
June 30, June 30,
2020 2019 2020 vs. 2020 2019 2020 vs.
2019 2019
---
(Dollars in millions)
Wireline
Operating revenues
Residential $
85 $
81 6 $
170 $
162 5
% %
Commercial 38 42 (10) 77 86 (10)
% %
Wholesale 46 49 (6) 91 94 (3)
% %
Total service revenues 169 172 (2) 338 342 (1)
% %
Equipment and product (48) 1 (45)
sales
% %
169 172 (2) 339 343 (1)
% %
Operating expenses
Cost of services 63 64 (3)
%
% 128 127 1
Cost of equipment and (10) 1 (33)
products
% %
Selling, general and 48 49 (2)
administrative expenses %
% 97 96 1
Expenses excluding
depreciation, %
amortization and %
accretion 111 114 (2) 225 224 1
Depreciation, 32 33 (3) 64 66 (4)
amortization and
accretion % %
(Gain) loss on asset
disposals, net (1) N/M (8) N/M
143 145 (2)
%
% 289 282 3
Operating income $
27 $
27 (1) $
50 $
61 (18)
% %
Cable
Operating revenues
Residential $
60 $
51 19 $
119 $
100 19
% %
Commercial 11 11 3 23 21 7
% %
71 62 16 142 121 17
% %
Operating expenses
Cost of services 30 27 12 60 52 14
% %
Selling, general and 17 15 14 34 30 15
administrative expenses % %
Expenses excluding
depreciation, % %
amortization and
accretion 47 42 13 94 82 15
Depreciation,
amortization and % %
accretion 20 17 15 39 34 15
(Gain) loss on asset 6 1 (62)
disposals, net %
%
67 59 13 133 117 14
% %
Operating income (loss) $
4 $
2 78 $
9 $
5 90
% %
Total TDS Telecom $
31 $
29 6 $
59 $
66 (10)
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 Six Months Ended
June 30, June 30,
2020 2019 2020 2019
---
(Dollars in millions)
Cash flows
from
operating
activities
(GAAP) $
440 $
265 $
806 $
592
Less: Cash
paid for
additions
to
property,
plant and
equipment 233 239 610 393
Free cash
flow (Non-
GAAP)(1) $
207 $
26 $
196 $
199
(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-second-quarter-2020-results-301107997.html
SOURCE Telephone and Data Systems, Inc.
