TDS reports fourth quarter and full year 2024 results
Investing in our networks; TDS Telecom provides 2025 guidance
CHICAGO, Feb. 21, 2025 /PRNewswire/ --
As previously announced, TDS will hold a teleconference on February 21, 2025 at 9:00 a.m. CST. 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 $1,240 million for the fourth quarter of 2024, versus $1,313 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(11) million and $(0.10), respectively, for the fourth quarter of 2024 compared to $(523) million and $(4.64), respectively, in the same period one year ago.
Net income (loss) attributable to TDS common shareholders excluding a fourth quarter 2023 TDS Telecom non-cash charge related to goodwill impairment (Non-GAAP) of $547 million ($511 million, net of tax) and related diluted earnings (loss) per share excluding a fourth quarter 2023 TDS Telecom non-cash charge related to goodwill impairment (Non-GAAP) were $(12) million and $(0.11), respectively, for the fourth quarter of 2023.
TDS reported total operating revenues of $4,964 million and $5,160 million for the years ended 2024 and 2023, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(97) million and $(0.85), respectively, for the year ended 2024 compared to $(569) million and $(5.06), respectively, for the year ended 2023. Net income attributable to TDS common shareholders excluding 2024 impairment losses (non-GAAP) of $137 million ($103 million, net of tax) and related diluted earnings (loss) per share excluding 2024 impairment losses (non-GAAP) were $(12) million and $(0.11), respectively, for the year ended 2024. Substantially all of the UScellular impairment loss was related to the retained high-band spectrum unit of accounting which includes the 28 GHz, 37GHz and 38 GHz frequency bands.
Net income (loss) attributable to TDS common shareholders excluding a fourth quarter 2023 TDS Telecom non-cash charge related to goodwill impairment (Non-GAAP) of $547 million ($511 million, net of tax) and related diluted earnings (loss) per share excluding a fourth quarter 2023 TDS Telecom non-cash charge related to goodwill impairment (Non-GAAP) were $(58) million and $(0.53), respectively, for the year ended 2023.
Full year 2024 Highlights*
UScellular
-- Announced multiple transactions related to the strategic alternatives
review
-- Transaction with T-Mobile and four spectrum transactions with
various mobile network operators
-- Improved wireless operating results
-- Postpaid and prepaid net losses improved
-- Postpaid and prepaid churn improved
-- Fixed wireless customers grew 27%
-- Cash flows from operating activities and free cash flow up year over
year
-- Ongoing 5G mid-band network deployment -- providing additional capacity
and faster speeds for our customers
TDS Telecom
-- Exceeded full year 2024 fiber address goal
-- Delivered 129,000 marketable fiber service addresses
-- Executing on fiber broadband strategy
-- Expanded footprint 6% -- increased total service addresses to 1.8
million
-- Residential broadband connections grew 2% and Residential revenue
per connection grew 5%
-- Total Wireline expansion residential revenues grew to $114 million,
up from $75 million
*Comparisons are Year Ended December 31, 2024 to Year Ended December 31, 2023
"During 2024, we made significant progress on the strategic review of alternatives at UScellular," said Walter C. D. Carlson, TDS President and CEO. "And as part of our mission to provide outstanding communication services to our customers, both business units invested in their high-quality networks. UScellular continued to deploy its mid-band spectrum to enhance speed and capacity while TDS Telecom grew its footprint and delivered 129,000 new marketable fiber service addresses.
"In 2025, TDS Telecom will continue its ongoing fiber expansion and the FCC's Enhanced Alternative Connect America Cost Model program and intends to bring a fiber-rich network to over 150,000 new marketable service addresses throughout the country. And while UScellular works toward a successful close on the sale of its wireless operations and spectrum transactions, UScellular remains focused on its operational priorities and growing its tower business."
Announced Transactions
On May 24, 2024, TDS and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile). The transaction is expected to close in mid-2025, subject to regulatory approval and the satisfaction of customary closing conditions.
On October 17, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, UScellular also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses.
On November 6, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T, Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close.
Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance.
2025 Estimated Results
TDS' current estimates of full-year 2025 results for TDS Telecom are shown below. Such estimates represent management's view as of February 21, 2025 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.
TDS Telecom 2025 Estimated Actual Results
for
Results the Year Ended
December 31, 2024
(Dollars in millions)
Total operating revenues
$1,030-$1,070 $1,061
Adjusted OIBDA1 (Non-GAAP)
$310-$350 $340
Adjusted EBITDA1 (Non-GAAP)
$320-$360 $350
Capital expenditures
$375-$425 $324
The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2025 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.
TDS Telecom
2025 Estimated Actual Results
for
Results
the Year Ended
December 31, 2024
(Dollars in millions)
Net income (GAAP) N/A $85
Add back:
Income tax expense N/A 35
Income before income taxes (GAAP)
$20-$60 $120
Add back:
Interest expense (5)
Depreciation, amortization and accretion 300 271
EBITDA (Non-GAAP)(1)
$320-$360 $385
Add back or deduct:
Loss on impairment of intangible assets 1
(Gain) loss on asset disposals, net 12
(Gain) loss on sale of business and other exit costs, net (49)
Adjusted EBITDA (Non-GAAP)(1)
$320-$360 $350
Deduct:
Interest and dividend income 5 5
Other, net 5 4
Adjusted OIBDA (Non-GAAP)(1)
$310-$350 $340
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 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, nonrecurring expenses, 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, 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, 2024, can be found on TDS' website at investors.tdsinc.com.
Conference Call Information
TDS will hold a conference call on February 21, 2025 at 9:00 a.m. Central Time.
-- Access the live call on the Events & Presentations page of
investors.tdsinc.com or at https://events.q4inc.com/attendee/548841993
-- Access the call by phone at (888) 330-2384 (US/Canada), passcode:
1328528
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) provides wireless, broadband, video, and voice to approximately 5.5 million connections nationwide through its businesses, UScellular and TDS Telecom. Founded in 1969 and headquartered in Chicago, TDS employed approximately 7,900 associates as of December 31, 2024.
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: whether the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed or whether UScellular will be able to find buyers at mutually agreeable prices for its remaining spectrum assets; whether any such strategic alternative will result in additional value for TDS or its shareholders and whether the process will have an adverse impact on TDS' businesses; if the announced transactions are not successfully completed there may be substantial changes in which the wireless business is conducted; if the announced transactions are successfully completed, substantial costs will be triggered and changes required in the manner in which UScellular's remaining business is conducted; strategic decisions regarding the tower business; intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms and changes in roaming practices; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; the effect on TDS' business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and the impact, duration and severity of public health emergencies. 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.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023
Retail Connections
Postpaid
Total at end of period(1) 3,985,000 3,999,000 4,027,000 4,051,000 4,106,000
Gross additions 140,000 123,000 117,000 106,000 129,000
Handsets 93,000 84,000 73,000 63,000 80,000
Connected devices 47,000 39,000 44,000 43,000 49,000
Net additions (losses)(1) (14,000) (28,000) (24,000) (44,000) (50,000)
Handsets (19,000) (28,000) (29,000) (47,000) (53,000)
Connected devices 5,000 5,000 3,000 3,000
ARPU(2) $51.73 $52.04 $51.45 $51.96 $51.61
ARPA(3) $131.10 $131.81 $130.41 $132.00 $131.63
Handset upgrade rate4 4.8 % 3.5 % 4.1 % 4.5 % 5.8 %
Churn rate5 1.29 % 1.25 % 1.16 % 1.22 % 1.44 %
Handsets 1.08 % 1.07 % 0.97 % 1.03 % 1.22 %
Connected devices 2.67 % 2.47 % 2.47 % 2.52 % 3.03 %
Prepaid
Total at end of period(1) 448,000 452,000 439,000 436,000 451,000
Gross additions 46,000 57,000 50,000 41,000 43,000
Net additions (losses)(1) (4,000) 13,000 3,000 (13,000) (11,000)
ARPU2, 6 $30.59 $32.01 $32.37 $32.25 $32.32
Churn rate5 3.70 % 3.30 % 3.60 % 4.06 % 3.87 %
Market penetration at end of period
Consolidated operating population 32,550,000 32,550,000 32,550,000 32,550,000 32,350,000
Consolidated operating penetration7 15 % 15 % 15 % 14 % 15 %
Capital expenditures (millions) $162 $120 $165 $131 $148
Total cell sites in service 7,010 7,007 6,990 6,995 7,000
Owned towers 4,409 4,407 4,388 4,382 4,373
Number of colocations8 2,444 2,418 2,392 2,397 2,390
Tower tenancy rate9 1.55 1.55 1.55 1.55 1.55
Due to rounding, the sum of quarterly results may not equal the total for the year.
1 First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular
network due to the CDMA
shutdown. This resulted in 11,000 and 2,000 subscribers removed from the postpaid and prepaid base,
respectively, that are not included in Net
additions (losses) for the quarter.
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 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.
4 Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset
connections.
5 Churn rate represents the percentage of the connections that disconnect service each month. These rates represent
the average monthly churn
rate for each respective period.
6 Fourth quarter 2023 Prepaid ARPU excludes a $6 million reduction of prepaid revenue related to an adjustment to
correct a prior period error
recorded in the fourth quarter of 2023.
7 Market penetration is calculated by dividing the number of wireless connections at the end of the period by the
total estimated population of
consolidated operating markets.
8 Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.
9
Average number of tenants that lease space on company-owned towers, measured on a per-tower basis.
TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023
Residential connections
Broadband
Incumbent Fiber 118,500 115,900 113,100 109,800 110,100
Incumbent Copper 116,900 125,600 130,600 135,300 134,700
Expansion Fiber 126,100 115,300 107,800 100,400 92,200
Cable 191,500 195,900 198,500 202,400 202,900
Total Broadband(1) 553,000 552,700 550,000 547,900 539,800
Video 121,000 122,100 124,800 128,800 131,500
Voice 261,600 271,300 275,600 279,400 281,600
Total Residential connections 935,600 946,100 950,400 956,100 952,900
Commercial connections 190,500 197,200 201,500 206,200 210,200
Total connections(2) 1,126,100 1,143,300 1,152,000 1,162,200 1,163,100
Residential revenue per connection(3) $64.72 $65.41 $65.26 $64.58 $62.74
Capital expenditures (millions) $82 $78 $78 $87 $143
Numbers may not foot due to rounding.
1 Total residential broadband connections increased by 8,100 during the three months ended March 31, 2024, due
primarily to net additions of
6,400 as well as certain other adjustments.
2
Divestitures in the fourth quarter of 2024 resulted in a decrease of 15,700 connections.
3 Total residential revenue per connection is calculated by dividing total residential revenue by the average number
of residential connections and
by the number of months in the period.
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
Year Ended
December 31, December 31,
2024 2023 2024 2024 2023 2024
vs. 2023 vs. 2023
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular $970 $1,000 (3) % $3,770 $3,906 (3) %
TDS Telecom 264 261 1 % 1,061 1,028 3 %
All Other(1) 6 52 (90) % 133 226 (41) %
1,240 1,313 (6) % 4,964 5,160 (4) %
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion 811 812 2,960 3,096 (4) %
Depreciation, amortization and accretion 165 166 665 656 1 %
Loss on impairment of licenses - 136 N/M
(Gain) loss on asset disposals, net 4 3 3 % 18 17 3 %
(Gain) loss on license sales and exchanges, net (1) (2) 59 % 3 (2) N/M
979 979 3,782 3,767
TDS Telecom
Expenses excluding depreciation, amortization and accretion 187 186 1 % 721 749 (4) %
Depreciation, amortization and accretion 72 65 10 % 271 245 10 %
Loss on impairment of intangible assets 1 547 (100) % 1 547 (100) %
(Gain) loss on asset disposals, net 4 1 N/M 12 10 28 %
(Gain) loss on sale of business and other exit costs, net (49) N/M (49) N/M
215 799 (73) % 956 1,551 (38) %
All Other(1)
Expenses excluding depreciation and amortization 16 56 (73) % 175 242 (28) %
Depreciation and amortization 1 3 (71) % 7 14 (47) %
(Gain) loss on sale of business and other exit costs, net (8) N/M (19) N/M
Total operating expenses 9 59 (85) % 163 256 (36) %
1,203 1,837 (35) % 4,901 5,574 (12) %
Operating income (loss)
UScellular (9) 21 N/M (12) 139 N/M
TDS Telecom 49 (538) N/M 105 (523) N/M
All Other(1) (4) (7) 53 % (30) (30) (1) %
37 (524) N/M 63 (414) N/M
Investment and other income (expense)
Equity in earnings of unconsolidated entities 39 37 3 % 164 159 3 %
Interest and dividend income 7 4 80 % 27 20 36 %
Interest expense (72) (66) (9) % (279) (244) (15) %
Other, net 2 1 N/M 5 2 N/M
Total investment and other income (expense) (24) (24) (1) % (83) (63) (33) %
Income (loss) before income taxes 13 (548) N/M (20) (477) 96 %
Income tax expense (benefit) 6 (45) N/M 6 10 (34) %
Net income (loss) 7 (503) N/M (26) (487) 95 %
Less: Net income attributable to noncontrolling interests, net of tax 1 3 (53) % 2 13 (90) %
Net income (loss) attributable to TDS shareholders 6 (506) N/M (28) (500) 94 %
TDS Preferred Share dividends 17 17 69 69
Net income (loss) attributable to TDS common shareholders $(11) $(523) 98 % $(97) $(569) 83 %
Basic weighted average shares outstanding 114 113 1 % 114 113 1 %
Basic earnings (loss) per share attributable to TDS common $(0.10) $(4.64) 98 % $(0.85) $(5.05) 83 %
shareholders
Diluted weighted average shares outstanding 114 113 1 % 114 113 1 %
Diluted earnings (loss) per share attributable to TDS common $(0.10) $(4.64) 98 % $(0.85) $(5.06) 83 %
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
UScellular and TDS Telecom segments.
Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31, 2024 2023
(Dollars in millions)
Cash flows from operating activities
Net income (loss) $(26) $(487)
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion 943 915
Bad debts expense 106 111
Stock-based compensation expense 71 41
Deferred income taxes, net 3 8
Equity in earnings of unconsolidated entities (164) (159)
Distributions from unconsolidated entities 169 150
Loss on impairment of intangible assets 137 547
(Gain) loss on asset disposals, net 30 27
(Gain) loss on sale of business and other exit costs, net (68)
(Gain) loss on license sales and exchanges, net 3 (2)
Other operating activities 9 8
Changes in assets and liabilities from operations
Accounts receivable (10) 2
Equipment installment plans receivable (37) (20)
Inventory 20 61
Accounts payable (40) (99)
Customer deposits and deferred revenues 9 (8)
Accrued taxes (4) 50
Other assets and liabilities (6) (3)
Net cash provided by operating activities 1,145 1,142
Cash flows from investing activities
Cash paid for additions to property, plant and equipment (884) (1,211)
Cash paid for licenses (20) (130)
Cash received from divestitures 147 1
Other investing activities 3 13
Net cash used in investing activities (754) (1,327)
Cash flows from financing activities
Issuance of long-term debt 440 1,081
Repayment of long-term debt (456) (723)
Repayment of short-term debt - (60)
TDS Common Shares reissued for stock-based compensation awards, net of tax payments (2) (3)
UScellular Common Shares reissued for stock-based compensation awards, net of tax payments (11) (6)
Repurchase of TDS Common Shares - (6)
Repurchase of UScellular Common Shares (54)
Dividends paid to TDS shareholders (104) (153)
Payment of debt issuance costs (16) (5)
Distributions to noncontrolling interests (5) (3)
Cash paid for software license agreements (67) (66)
Other financing activities (2)
Net cash provided by (used in) financing activities (277) 56
Net increase (decrease) in cash, cash equivalents and restricted cash 114 (129)
Cash, cash equivalents and restricted cash
Beginning of period 270 399
End of period $384 $270
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
December 31, 2024 2023
(Dollars in millions)
Current assets
Cash and cash equivalents $364 $236
Accounts receivable, net 1,041 1,074
Inventory, net 183 208
Prepaid expenses 72 86
Income taxes receivable 2 4
Other current assets 33 52
Total current assets 1,695 1,660
Assets held for sale - 15
Licenses 4,588 4,702
Other intangible assets, net 161 183
Investments in unconsolidated entities 500 505
Property, plant and equipment, net 4,994 5,062
Operating lease right-of-use assets 982 987
Other assets and deferred charges 762 807
Total assets $13,682 $13,921
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
December 31, 2024 2023
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt $31 $26
Accounts payable 280 360
Customer deposits and deferred revenues 283 277
Accrued interest 16 12
Accrued taxes 39 43
Accrued compensation 150 149
Short-term operating lease liabilities 153 147
Other current liabilities 138 170
Total current liabilities 1,090 1,184
Deferred liabilities and credits
Deferred income tax liability, net 981 975
Long-term operating lease liabilities 867 890
Other deferred liabilities and credits 809 784
Long-term debt, net 4,051 4,080
Noncontrolling interests with redemption features 16 12
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share 1 1
Capital in excess of par value 2,574 2,558
Preferred Shares, par value $0.01 per share 1,074 1,074
Treasury shares, at cost (425) (465)
Accumulated other comprehensive income 18 11
Retained earnings 1,849 2,023
Total TDS shareholders' equity 5,091 5,202
Noncontrolling interests 777 794
Total equity 5,868 5,996
Total liabilities and equity $13,682 $13,921
Balance Sheet Highlights
(Unaudited)
December 31, 2024
UScellular TDS TDS Corporate Intercompany TDS
Telecom & Other Eliminations Consolidated
(Dollars in millions)
Cash and cash equivalents $144 $142 $218 $(140) $364
Licenses and other intangible assets $4,579 $164 $6
$ - $4,749
Investment in unconsolidated entities 454 4 50 (8) 500
$5,033 $168 $56 $(8) $5,249
Property, plant and equipment, net $2,502 $2,475 $17
$ - $4,994
Long-term debt, net:
Current portion $22
$ - $9
$ - $31
Non-current portion 2,837 3 1,211 4,051
$2,859 $3 $1,220
$ - $4,082
United States Cellular Corporation
Segment Results
(Unaudited)
Three Months Ended Year Ended
December 31,
December 31,
UScellular 2024 2023 2024 2024 2023 2024
vs. 2023
vs. 2023
(Dollars in millions)
Operating Revenues
Wireless $944 $975 (3) % $3,667 $3,805 (4) %
Towers 59 57 3 % 234 228 3 %
Intra-company eliminations (33) (32) (3) % (131) (127) (3) %
Total operating revenues 970 1,000 (3) % 3,770 3,906 (3) %
Operating expenses
Wireless 971 975 3,757 3,743
Towers 41 36 12 % 156 151 3 %
Intra-company eliminations (33) (32) (3) % (131) (127) (3) %
Total operating expenses 979 979 3,782 3,767
Operating income (loss) $(9) $21 N/M $(12) $139 N/M
Adjusted OIBDA (Non-GAAP) $167 $194 (14) % $845 $818 3 %
Adjusted EBITDA (Non-GAAP) $208 $233 (11) % $1,018 $986 3 %
Capital expenditures $162 $148 9 % $577 $611 (6) %
N/M - Percentage change not meaningful
United States Cellular Corporation
Segment Results
(Unaudited)
Three Months Ended Year Ended
December 31,
December 31,
UScellular Wireless 2024 2023 2024 2024 2023 2024
vs. 2023
vs. 2023
(Dollars in millions)
Retail service $661 $678 (3) % $2,674 $2,742 (2) %
Other 55 52 7 % 210 201 5 %
Service revenues 716 730 (2) % 2,884 2,943 (2) %
Equipment sales 228 245 (7) % 783 862 (9) %
Total operating revenues 944 975 (3) % 3,667 3,805 (4) %
System operations (excluding Depreciation, amortization and accretion 195 197 (1) % 777 794 (2) %
reported below)
Cost of equipment sold 276 280 (1) % 906 988 (8) %
Selling, general and administrative 344 340 1 % 1,298 1,334 (3) %
Depreciation, amortization and accretion 153 155 620 610 1 %
Loss on impairment of licenses - 136 N/M
(Gain) loss on asset disposals, net 4 5 (37) % 17 19 (11) %
(Gain) loss on license sales and exchanges, net (1) (2) 59 % 3 (2) N/M
Total operating expenses 971 975 3,757 3,743
Operating income (loss) $(27)
$ - N/M $(90) $62 N/M
Adjusted OIBDA (Non-GAAP) $137 $164 (16) % $719 $697 3 %
Adjusted EBITDA (Non-GAAP) $137 $164 (16) % $719 $697 3 %
Capital expenditures $154 $127 21 % $554 $580 (5) %
Three Months Ended Year Ended
December 31,
December 31,
UScellular Towers 2024 2023 2024 2024 2023 2024
vs. 2023
vs. 2023
(Dollars in millions)
Third-party revenues $26 $25 4 % $103 $101 2 %
Intra-company revenues 33 32 3 % 131 127 3 %
Total tower revenues 59 57 3 % 234 228 3 %
System operations (excluding Depreciation, amortization and accretion 20 18 11 % 78 73 6 %
reported below)
Selling, general and administrative 9 9 2 % 32 34 (5) %
Depreciation, amortization and accretion 12 11 45 46 (1) %
(Gain) loss on asset disposals, net - (2) N/M 1 (2) N/M
Total operating expenses 41 36 12 % 156 151 3 %
Operating income $18 $21 (11) % $78 $77 2 %
Adjusted OIBDA (Non-GAAP) $30 $30 $126 $121 4 %
Adjusted EBITDA (Non-GAAP) $30 $30 $126 $121 4 %
Capital expenditures $8 $21 (62) % $23 $31 (24) %
N/M - Percentage change not meaningful
TDS Telecom Highlights
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2024 2023 2024 2024 2023 2024
vs. vs.
2023 2022
(Dollars in millions)
Operating revenues
Residential
Incumbent $86 $88 (2) % $355 $352 1 %
Expansion 31 23 39 % 114 75 52 %
Cable 65 69 (5) % 270 273 (1) %
Total residential 182 179 2 % 740 700 6 %
Commercial 37 37 148 155 (5) %
Wholesale 44 45 173 172
Total service revenues 264 261 1 % 1,060 1,027 3 %
Equipment revenues - 19 % 1 1 (3) %
Total operating revenues 264 261 1 % 1,061 1,028 3 %
Cost of services 103 104 (1) % 400 423 (5) %
Cost of equipment and products - N/M 1 58 %
Selling, general and administrative expenses 84 82 2 % 320 326 (2) %
Depreciation, amortization and accretion 72 65 10 % 271 245 10 %
Loss on impairment of intangible assets 1 547 (100) % 1 547 (100) %
(Gain) loss on asset disposals, net 4 1 N/M 12 10 28 %
(Gain) loss on sale of business and other exit costs, net (49) N/M (49) N/M
Total operating expenses 215 799 (73) % 956 1,551 (38) %
Operating income (loss) $49 $(538) N/M $105 $(523) N/M
Adjusted OIBDA (Non-GAAP) $77 $76 2 % $340 $279 22 %
Adjusted EBITDA (Non-GAAP) $80 $78 3 % $350 $285 23 %
Capital expenditures $82 $143 (43) % $324 $577 (44) %
N/M - Percentage change not meaningful.
Numbers may not foot due to rounding.
Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
Three Months Ended Year Ended
December 31, December 31,
TDS Consolidated 2024 2023 2024 2023
(Dollars in millions)
Cash flows from operating activities (GAAP) $213 $218 $1,145 $1,142
Cash paid for additions to property, plant and equipment (230) (304) (884) (1,211)
Cash paid for software license agreements (35) (37) (67) (66)
Free cash flow (Non-GAAP)(1) $(52) $(123) $194 $(135)
Three Months Ended Year Ended
December 31, December 31,
UScellular 2024 2023 2024 2023
(Dollars in millions)
Cash flows from operating activities (GAAP) $121 $148 $883 $866
Cash paid for additions to property, plant and equipment (139) (155) (537) (608)
Cash paid for software license agreements (35) (37) (66) (66)
Free cash flow (Non-GAAP)(1) $(53) $(44) $280 $192
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 and Cash paid for software license agreements.
Intangible assets impairment, net of tax
The following non-GAAP financial measure isolates the total effects on net income of the Loss on impairment of intangible assets at
TDS Telecom and UScellular, including tax impacts. TDS believes this measure may be useful to investors and other users of its
financial information to assist in comparing financial results with periods that were not impacted by impairment charges.
Three Months Ended Year Ended
December 31,
December 31,
2024 2023 2024 2023
(Dollars in millions)
Net income (loss) attributable to TDS common shareholders $(11) $(523) $(97) $(569)
(GAAP)
Adjustments:
Loss on impairment of intangible assets 1 547 137 547
Deferred tax benefit on the tax-amortizable portion of the - (36) (34) (36)
impaired intangible assets
UScellular noncontrolling public shareholders' portion of the - (18)
intangible assets
Subtotal of Non-GAAP adjustments 1 511 85 511
Net income (loss) attributable to TDS common shareholders (10) (12) (12) (58)
excluding intangible assets impairment charge (Non-GAAP)
Noncontrolling interest adjustment to compute diluted earnings - (1)
(loss) per share
Net income (loss) attributable to TDS common shareholders $(10) $(12) $(12) $(59)
excluding intangible assets impairment charge used in diluted
earnings (loss) per share (Non-GAAP)
Diluted weighted average shares outstanding used for diluted 114 113 114 113
earnings (loss) per share attributable to TDS common
shareholders
Diluted weighted average shares outstanding used for diluted 114 113 114 113
earnings (loss) per share attributable to TDS common
shareholders excluding intangible assets impairment charge
Diluted earnings (loss) per share attributable to TDS $(0.10) $(4.64) $(0.85) $(5.06)
common shareholders (GAAP)
Adjustments:
Loss on impairment of intangible assets 0.01 4.85 1.20 4.85
Deferred tax benefit on the tax-amortizable portion of the impaired intangible assets - (0.32) (0.30) (0.32)
UScellular noncontrolling public shareholders' portion of the impaired intangible assets - (0.16)
Diluted earnings (loss) per share attributable to TDS common $(0.09) $(0.11) $(0.11) $(0.53)
shareholders excluding intangible assets impairment charge
(Non-GAAP)
Telephone and Data Systems, Inc.
EBITDA, Adjusted EBITDA and Adjusted OIBDA
(Unaudited)
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income
(loss) and Income (loss) before income taxes. Income and expense items below Operating income (loss) are not provided at the
individual segment level for UScellular Wireless and UScellular Towers; therefore, the reconciliations begin with EBITDA and the most
directly comparable GAAP measure is Operating income (loss) rather than Net income (loss) at the segment level.
Three Months Ended Year Ended
December 31, December 31,
UScellular 2024 2023 2024 2023
(Dollars in millions)
Net income (loss) (GAAP) $5 $15 $(32) $58
Add back or deduct:
Income tax expense (benefit) (19) (4) 10 53
Income (loss) before income taxes (GAAP) (14) 11 (22) 111
Add back:
Interest expense 46 49 183 196
Depreciation, amortization and accretion expense 165 166 665 656
EBITDA (Non-GAAP) 197 226 826 963
Add back or deduct:
Expenses related to strategic alternatives review 8 6 35 8
Loss on impairment of licenses - 136
(Gain) loss on asset disposals, net 4 3 18 17
(Gain) loss on license sales and exchanges, net (1) (2) 3 (2)
Adjusted EBITDA (Non-GAAP) 208 233 1,018 986
Deduct:
Equity in earnings of unconsolidated entities 38 37 161 158
Interest and dividend income 3 2 12 10
Adjusted OIBDA (Non-GAAP) $167 $194 $845 $818
Three Months Ended Year Ended
December 31, December 31,
UScellular Wireless 2024 2023 2024 2023
(Dollars in millions)
EBITDA (Non-GAAP) $126 $155 $530 $672
Add back or deduct:
Expenses related to strategic alternatives review 8 6 33 8
Loss on impairment of licenses 136
(Gain) loss on asset disposals, net 4 5 17 19
(Gain) loss on license sales and exchanges, net (1) (2) 3 (2)
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 137 164 719 697
Deduct:
Depreciation, amortization and accretion 153 155 620 610
Expenses related to strategic alternatives review 8 6 33 8
Loss on impairment of licenses 136
(Gain) loss on asset disposals, net 4 5 17 19
(Gain) loss on license sales and exchanges, net (1) (2) 3 (2)
Operating income (loss) (GAAP) $(27)
$ - $(90) $62
Three Months Ended Year Ended
December 31, December 31,
UScellular Towers 2024 2023 2024 2023
(Dollars in millions)
EBITDA (Non-GAAP) $30 $32 $123 $123
Add back or deduct:
Expenses related to strategic alternatives review 2
(Gain) loss on asset disposals, net (2) 1 (2)
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 30 30 126 121
Deduct:
Depreciation, amortization and accretion 12 11 45 46
Expenses related to strategic alternatives review 2
(Gain) loss on asset disposals, net (2) 1 (2)
Operating income (GAAP) $18 $21 $78 $77
Three Months Ended Year Ended
December 31, December 31,
TDS Telecom 2024 2023 2024 2023
(Dollars in millions)
Net income (loss) (GAAP) $34 $(503) $85 $(483)
Add back or deduct:
Income tax expense (benefit) 20 (31) 35 (26)
Income (loss) before income taxes (GAAP) 54 (534) 120 (509)
Add back:
Interest expense (2) (2) (5) (8)
Depreciation, amortization and accretion expense 72 65 271 245
EBITDA (Non-GAAP) 124 (470) 385 (272)
Add back or deduct:
Loss on impairment of intangible assets 1 547 1 547
(Gain) loss on asset disposals, net 4 1 12 10
(Gain) loss on sale of business and other exit costs, net (49) (49)
Adjusted EBITDA (Non-GAAP) 80 78 350 285
Deduct:
Interest and dividend income 2 1 5 4
Other, net 1 1 4 2
Adjusted OIBDA (Non-GAAP) $77 $76 $340 $279
View original content:https://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2024-results-302382002.html
SOURCE Telephone and Data Systems, Inc.
