TDS reports fourth quarter and full year 2023 results
Investing in our networks; Provides 2024 guidance
As previously announced, TDS will hold a teleconference on
Excluding a
TDS reported total operating revenues of
Excluding a
Full year 2023 Highlights*
UScellular
- Postpaid ARPU grew 2%
-
Delivering on growth initiatives
- Fixed wireless customers grew 46% to 114,000
- Tower rental revenues grew 8% to
$100 million
-
Increased profitability
- Net income, Adjusted OIBDA and Adjusted EBITDA up
- Generated positive free cash flow and increased cash flows from operating activities
- Began launching 5G mid-band network - providing low latency and faster speeds
-
Exceeded full year 2023 fiber address goal
- Delivered 217,000 fiber service addresses
-
Executing on fiber broadband strategy
- Expanded its footprint 12% - increased total service addresses to 1.7 million
- Residential broadband connections grew 6% and Residential revenue per connection grew 4%
- Total Wireline expansion residential revenues grew to
$75 million
*Comparisons are Year Ended
"In 2023, the TDS Family of Companies continued to make substantial investments in our businesses in order to improve our competitiveness," said
"UScellular increased Postpaid ARPU 2% and drove strong results in fixed wireless in 2023. It was a challenging year from a mobility subscriber standpoint as the environment remains competitive. UScellular's goal was to balance subscriber objectives with financial goals, which led to increased profitability year over year.
"In 2024, UScellular plans to continue focusing on improving customer results, growth in fixed wireless and towers, and maintaining financial discipline as we advance the network through mid-band deployment.
"In 2023,
2024 Estimated Results
TDS' current estimates of full-year 2024 results for UScellular and
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UScellular |
2024 Estimated |
|
Actual Results for the Year Ended
|
(Dollars in millions) |
|
|
|
Service revenues |
|
|
|
Adjusted OIBDA1, 2 |
|
|
|
Adjusted EBITDA1, 2 |
|
|
|
Capital expenditures |
|
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|
|
|
|
2024 Estimated |
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Actual Results for
|
(Dollars in millions) |
|
|
|
Total operating revenues |
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|
Adjusted OIBDA1 |
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|
Adjusted EBITDA1 |
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|
Capital expenditures |
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|
The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) or Income (loss) before income taxes. In providing 2024 estimated results, TDS has not completed the below reconciliation to Net income (loss) 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.
|
UScellular |
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|
2024 Estimated |
|
Actual Results for the Year Ended
|
|
2024 Estimated |
|
Actual Results for the Year Ended
|
(Dollars in millions) |
|
|
|
|
|
|
|
Net income (loss) (GAAP) |
N/A |
|
|
|
N/A |
|
( |
Add back: |
|
|
|
|
|
|
|
Income tax expense |
N/A |
|
53 |
|
N/A |
|
(26) |
Income (loss) before income taxes (GAAP) |
|
|
|
|
|
|
( |
Add back: |
|
|
|
|
|
|
|
Interest expense |
195 |
|
196 |
|
— |
|
(8) |
Depreciation, amortization and accretion expense |
665 |
|
656 |
|
270 |
|
245 |
EBITDA (Non-GAAP)1 |
|
|
|
|
|
|
( |
Add back or deduct: |
|
|
|
|
|
|
|
Expenses related to strategic alternatives review |
— |
|
8 |
|
— |
|
— |
Loss on impairment of goodwill |
— |
|
— |
|
— |
|
547 |
(Gain) loss on asset disposals, net |
20 |
|
17 |
|
— |
|
10 |
(Gain) loss on license sales and exchanges, net |
— |
|
(2) |
|
— |
|
— |
Adjusted EBITDA (Non-GAAP)1 |
|
|
|
|
|
|
|
Deduct: |
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities |
160 |
|
158 |
|
— |
|
— |
Interest and dividend income |
10 |
|
10 |
|
— |
|
4 |
Other, net |
— |
|
— |
|
— |
|
2 |
Adjusted OIBDA (Non-GAAP)1 |
|
|
|
|
|
|
|
|
Numbers may not foot due to rounding. |
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|
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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 |
|
2 |
2024 Estimated Results do not reflect any anticipated costs, expenses or results of the strategic alternatives review referenced above. |
Conference Call Information
TDS will hold a conference call on
- Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://events.q4inc.com/attendee/105947395
- 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
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 any strategic alternatives for UScellular will be successfully identified or completed; 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; 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
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
Summary Operating Data (Unaudited)
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As of or for the Quarter Ended |
|
|
|
|
|
|
|
|
|
Retail Connections |
|
|
|
|
|
|
|
|
|
Postpaid |
|
|
|
|
|
|
|
|
|
Total at end of period |
4,106,000 |
|
4,159,000 |
|
4,194,000 |
|
4,223,000 |
|
4,247,000 |
Gross additions |
129,000 |
|
128,000 |
|
125,000 |
|
137,000 |
|
154,000 |
Handsets |
80,000 |
|
84,000 |
|
83,000 |
|
93,000 |
|
105,000 |
Connected devices |
49,000 |
|
44,000 |
|
42,000 |
|
44,000 |
|
49,000 |
Net additions (losses) |
(50,000) |
|
(35,000) |
|
(28,000) |
|
(24,000) |
|
(17,000) |
Handsets |
(53,000) |
|
(38,000) |
|
(29,000) |
|
(25,000) |
|
(20,000) |
Connected devices |
3,000 |
|
3,000 |
|
1,000 |
|
1,000 |
|
3,000 |
ARPU1 |
$ 51.61 |
|
$ 51.11 |
|
$ 50.64 |
|
$ 50.66 |
|
$ 50.60 |
ARPA2 |
$ 131.63 |
|
$ 130.91 |
|
$ 130.19 |
|
$ 130.77 |
|
$ 130.97 |
Handset upgrade rate3 |
5.8 % |
|
4.5 % |
|
4.8 % |
|
4.9 % |
|
7.0 % |
Churn rate4 |
1.44 % |
|
1.30 % |
|
1.21 % |
|
1.27 % |
|
1.35 % |
Handsets |
1.22 % |
|
1.11 % |
|
1.01 % |
|
1.06 % |
|
1.12 % |
Connected devices |
3.03 % |
|
2.64 % |
|
2.65 % |
|
2.78 % |
|
2.99 % |
Prepaid |
|
|
|
|
|
|
|
|
|
Total at end of period |
451,000 |
|
462,000 |
|
462,000 |
|
470,000 |
|
493,000 |
Gross additions |
43,000 |
|
52,000 |
|
50,000 |
|
43,000 |
|
61,000 |
Net additions (losses) |
(11,000) |
|
— |
|
(8,000) |
|
(23,000) |
|
— |
ARPU1, 5 |
$ 32.32 |
|
$ 33.44 |
|
$ 33.86 |
|
$ 33.19 |
|
$ 33.34 |
Churn rate4 |
3.87 % |
|
3.68 % |
|
4.18 % |
|
4.63 % |
|
4.11 % |
Market penetration at end of period |
|
|
|
|
|
|
|
|
|
Consolidated operating population |
32,350,000 |
|
32,350,000 |
|
32,350,000 |
|
32,350,000 |
|
32,370,000 |
Consolidated operating penetration6 |
15 % |
|
15 % |
|
15 % |
|
15 % |
|
15 % |
Capital expenditures (millions) |
$ 148 |
|
$ 111 |
|
$ 143 |
|
$ 208 |
|
$ 176 |
Total cell sites in service |
7,000 |
|
6,973 |
|
6,952 |
|
6,950 |
|
6,945 |
Owned towers |
4,373 |
|
4,356 |
|
4,341 |
|
4,338 |
|
4,336 |
|
|
|
Due to rounding, the sum of quarterly results may not equal the total for the year. |
|
|
1 |
Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:
|
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 |
Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections. |
4 |
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. |
5 |
Fourth quarter 2023 Prepaid ARPU excludes a |
6 |
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. |
Summary Operating Data (Unaudited)
|
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|||||||||
As of or for the Quarter Ended |
|
|
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|
|
|
|
|
|
Residential connections |
|
|
|
|
|
|
|
|
|
Broadband |
|
|
|
|
|
|
|
|
|
Wireline, Incumbent |
244,800 |
|
248,800 |
|
249,200 |
|
247,900 |
|
249,100 |
Wireline, Expansion |
92,200 |
|
79,400 |
|
70,200 |
|
62,800 |
|
56,100 |
Cable |
202,900 |
|
204,400 |
|
204,200 |
|
204,700 |
|
204,800 |
Total Broadband |
539,800 |
|
532,600 |
|
523,600 |
|
515,400 |
|
510,000 |
Video |
131,500 |
|
132,400 |
|
132,300 |
|
132,600 |
|
135,300 |
Voice |
281,600 |
|
284,000 |
|
288,200 |
|
289,200 |
|
291,600 |
Total Residential connections |
952,900 |
|
949,000 |
|
944,100 |
|
937,200 |
|
936,900 |
Commercial connections |
210,200 |
|
217,400 |
|
223,300 |
|
229,800 |
|
236,000 |
Total connections |
1,163,100 |
|
1,166,400 |
|
1,167,400 |
|
1,167,000 |
|
1,173,000 |
|
|
|
|
|
|
|
|
|
|
Residential revenue per connection1 |
$ 62.74 |
|
$ 62.15 |
|
$ 61.97 |
|
$ 60.24 |
|
$ 59.91 |
|
|
|
|
|
|
|
|
|
|
Capital expenditures (millions) |
$ 143 |
|
$ 172 |
|
$ 132 |
|
$ 130 |
|
$ 165 |
|
|
Numbers may not foot due to rounding. |
|
1 |
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. |
Consolidated Statement of Operations Highlights (Unaudited) |
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|
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|
Three Months Ended
|
|
Year Ended
|
||||||||
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
2023 |
|
2022 |
|
2023 vs. 2022 |
(Dollars and shares in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
UScellular |
|
|
$ 1,048 |
|
(5) % |
|
|
|
$ 4,169 |
|
(6) % |
|
261 |
|
257 |
|
2 % |
|
1,028 |
|
1,020 |
|
1 % |
All Other1 |
52 |
|
52 |
|
(1) % |
|
226 |
|
224 |
|
1 % |
|
1,313 |
|
1,357 |
|
(3) % |
|
5,160 |
|
5,413 |
|
(5) % |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
UScellular |
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion |
812 |
|
885 |
|
(8) % |
|
3,096 |
|
3,379 |
|
(8) % |
Depreciation, amortization and accretion |
166 |
|
179 |
|
(8) % |
|
656 |
|
700 |
|
(6) % |
Loss on impairment of licenses |
— |
|
— |
|
— |
|
— |
|
3 |
|
N/M |
(Gain) loss on asset disposals, net |
3 |
|
11 |
|
(67) % |
|
17 |
|
19 |
|
(9) % |
(Gain) loss on sale of business and other exit costs, net |
— |
|
— |
|
N/M |
|
— |
|
(1) |
|
N/M |
(Gain) loss on license sales and exchanges, net |
(2) |
|
— |
|
N/M |
|
(2) |
|
— |
|
N/M |
|
979 |
|
1,075 |
|
(9) % |
|
3,767 |
|
4,100 |
|
(8) % |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion |
186 |
|
192 |
|
(4) % |
|
749 |
|
732 |
|
2 % |
Depreciation, amortization and accretion |
65 |
|
56 |
|
17 % |
|
245 |
|
215 |
|
14 % |
Loss on impairment of goodwill |
547 |
|
— |
|
N/M |
|
547 |
|
— |
|
N/M |
(Gain) loss on asset disposals, net |
1 |
|
3 |
|
(59) % |
|
10 |
|
7 |
|
31 % |
|
799 |
|
252 |
|
N/M |
|
1,551 |
|
954 |
|
63 % |
All Other1 |
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation and amortization |
56 |
|
52 |
|
8 % |
|
242 |
|
222 |
|
9 % |
Depreciation and amortization |
3 |
|
3 |
|
(6) % |
|
14 |
|
14 |
|
(2) % |
(Gain) loss on asset disposals, net |
— |
|
— |
|
N/M |
|
— |
|
1 |
|
(95) % |
|
59 |
|
56 |
|
7 % |
|
256 |
|
237 |
|
8 % |
Total operating expenses |
1,837 |
|
1,383 |
|
33 % |
|
5,574 |
|
5,291 |
|
5 % |
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
UScellular |
21 |
|
(27) |
|
N/M |
|
139 |
|
69 |
|
N/M |
|
(538) |
|
5 |
|
N/M |
|
(523) |
|
66 |
|
N/M |
All Other1 |
(7) |
|
(4) |
|
N/M |
|
(30) |
|
(13) |
|
N/M |
|
(524) |
|
(26) |
|
N/M |
|
(414) |
|
122 |
|
N/M |
Investment and other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities |
37 |
|
36 |
|
4 % |
|
159 |
|
159 |
|
– |
Interest and dividend income |
4 |
|
7 |
|
(41) % |
|
20 |
|
17 |
|
19 % |
Interest expense |
(66) |
|
(55) |
|
(20) % |
|
(244) |
|
(174) |
|
(40) % |
Other, net |
1 |
|
— |
|
N/M |
|
2 |
|
1 |
|
94 % |
Total investment and other income (expense) |
(24) |
|
(12) |
|
(96) % |
|
(63) |
|
3 |
|
N/M |
Income (loss) before income taxes |
(548) |
|
(38) |
|
N/M |
|
(477) |
|
125 |
|
N/M |
Income tax expense (benefit) |
(45) |
|
(8) |
|
N/M |
|
10 |
|
53 |
|
(81) % |
Net income (loss) |
(503) |
|
(30) |
|
N/M |
|
(487) |
|
72 |
|
N/M |
Less: Net income (loss) attributable to noncontrolling interests, net of tax |
3 |
|
(4) |
|
N/M |
|
13 |
|
10 |
|
28 % |
Net income (loss) attributable to TDS shareholders |
(506) |
|
(26) |
|
N/M |
|
(500) |
|
62 |
|
N/M |
TDS Preferred Share dividends |
17 |
|
17 |
|
— |
|
69 |
|
69 |
|
– |
Net loss attributable to TDS common shareholders |
$ (523) |
|
$ (43) |
|
N/M |
|
$ (569) |
|
$ (7) |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
113 |
|
113 |
|
– |
|
113 |
|
114 |
|
(1) % |
Basic earnings (loss) per share attributable to TDS common shareholders |
$ (4.64) |
|
$ (0.38) |
|
N/M |
|
$ (5.05) |
|
$ (0.07) |
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
113 |
|
113 |
|
– |
|
113 |
|
114 |
|
(1) % |
Diluted earnings (loss) per share attributable to TDS common shareholders |
$ (4.64) |
|
$ (0.38) |
|
N/M |
|
$ (5.06) |
|
$ (0.07) |
|
N/M |
N/M - Percentage change not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
Numbers may not foot due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Consists of TDS corporate, intercompany eliminations and other business operations not included in UScellular and |
Consolidated Statement of Cash Flows (Unaudited)
|
|||
|
|||
Year Ended |
2023 |
|
2022 |
(Dollars in millions) |
|
|
|
Cash flows from operating activities |
|
|
|
Net income (loss) |
$ (487) |
|
$ 72 |
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities |
|
|
|
Depreciation, amortization and accretion |
915 |
|
929 |
Bad debts expense |
111 |
|
138 |
Stock-based compensation expense |
41 |
|
42 |
Deferred income taxes, net |
8 |
|
47 |
Equity in earnings of unconsolidated entities |
(159) |
|
(159) |
Distributions from unconsolidated entities |
150 |
|
145 |
Loss on impairment of intangible assets |
547 |
|
3 |
(Gain) loss on asset disposals, net |
27 |
|
27 |
(Gain) loss on sale of business and other exit costs, net |
— |
|
(1) |
(Gain) loss on license sales and exchanges, net |
(2) |
|
— |
Other operating activities |
8 |
|
10 |
Changes in assets and liabilities from operations |
|
|
|
Accounts receivable |
2 |
|
(69) |
Equipment installment plans receivable |
(20) |
|
(199) |
Inventory |
61 |
|
(90) |
Accounts payable |
(99) |
|
32 |
Customer deposits and deferred revenues |
(8) |
|
48 |
Accrued taxes |
50 |
|
127 |
Other assets and liabilities |
(3) |
|
53 |
Net cash provided by operating activities |
1,142 |
|
1,155 |
|
|
|
|
Cash flows from investing activities |
|
|
|
Cash paid for additions to property, plant and equipment |
(1,211) |
|
(1,161) |
Cash paid for licenses and other intangible assets |
(130) |
|
(614) |
Other investing activities |
14 |
|
(8) |
Net cash used in investing activities |
(1,327) |
|
(1,783) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Issuance of long-term debt |
1,081 |
|
1,154 |
Repayment of long-term debt |
(723) |
|
(332) |
Issuance of short-term debt |
— |
|
110 |
Repayment of short-term debt |
(60) |
|
(50) |
TDS Common Shares reissued for benefit plans, net of tax payments |
(3) |
|
(4) |
UScellular Common Shares reissued for benefit plans, net of tax payments |
(6) |
|
(5) |
Repurchase of TDS Common Shares |
(6) |
|
(40) |
Repurchase of UScellular Common Shares |
— |
|
(43) |
Dividends paid to TDS shareholders |
(153) |
|
(151) |
Payment of debt and equity issuance costs |
(5) |
|
(2) |
Distributions to noncontrolling interests |
(3) |
|
(3) |
Cash paid for software license agreements |
(66) |
|
(23) |
Other financing activities |
— |
|
2 |
Net cash provided by financing activities |
56 |
|
613 |
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
(129) |
|
(15) |
|
|
|
|
Cash, cash equivalents and restricted cash |
|
|
|
Beginning of period |
399 |
|
414 |
End of period |
$ 270 |
|
$ 399 |
Consolidated Balance Sheet Highlights (Unaudited)
|
|||
ASSETS |
|||
|
|||
|
2023 |
|
2022 |
(Dollars in millions) |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ 236 |
|
$ 360 |
Accounts receivable, net |
1,074 |
|
1,181 |
Inventory, net |
208 |
|
268 |
Prepaid expenses |
86 |
|
102 |
Income taxes receivable |
4 |
|
59 |
Other current assets |
52 |
|
58 |
Total current assets |
1,660 |
|
2,028 |
|
|
|
|
Assets held for sale |
15 |
|
26 |
|
|
|
|
Licenses |
4,702 |
|
4,699 |
|
|
|
|
|
— |
|
547 |
|
|
|
|
Other intangible assets, net |
183 |
|
204 |
|
|
|
|
Investments in unconsolidated entities |
505 |
|
495 |
|
|
|
|
Property, plant and equipment, net |
5,062 |
|
4,760 |
|
|
|
|
Operating lease right-of-use assets |
987 |
|
995 |
|
|
|
|
Other assets and deferred charges |
807 |
|
796 |
|
|
|
|
Total assets |
$ 13,921 |
|
$ 14,550 |
Consolidated Balance Sheet Highlights (Unaudited)
|
|||
LIABILITIES AND EQUITY |
|||
|
|||
|
2023 |
|
2022 |
(Dollars in millions, except per share amounts) |
|
|
|
Current liabilities |
|
|
|
Current portion of long-term debt |
$ 26 |
|
$ 19 |
Accounts payable |
360 |
|
506 |
Customer deposits and deferred revenues |
277 |
|
285 |
Accrued interest |
12 |
|
12 |
Accrued taxes |
43 |
|
46 |
Accrued compensation |
149 |
|
144 |
Short-term operating lease liabilities |
147 |
|
146 |
Other current liabilities |
170 |
|
356 |
Total current liabilities |
1,184 |
|
1,514 |
|
|
|
|
Deferred liabilities and credits |
|
|
|
Deferred income tax liability, net |
975 |
|
969 |
Long-term operating lease liabilities |
890 |
|
908 |
Other deferred liabilities and credits |
784 |
|
813 |
|
|
|
|
Long-term debt, net |
4,080 |
|
3,731 |
|
|
|
|
Noncontrolling interests with redemption features |
12 |
|
12 |
|
|
|
|
Equity |
|
|
|
TDS shareholders' equity |
|
|
|
Series A Common and Common Shares, par value |
1 |
|
1 |
Capital in excess of par value |
2,558 |
|
2,551 |
Preferred Shares, par value |
1,074 |
|
1,074 |
|
(465) |
|
(481) |
Accumulated other comprehensive income |
11 |
|
5 |
Retained earnings |
2,023 |
|
2,699 |
Total TDS shareholders' equity |
5,202 |
|
5,849 |
|
|
|
|
Noncontrolling interests |
794 |
|
754 |
|
|
|
|
Total equity |
5,996 |
|
6,603 |
|
|
|
|
Total liabilities and equity |
$ 13,921 |
|
$ 14,550 |
Balance Sheet Highlights (Unaudited) |
|||||||||
|
|||||||||
|
|
||||||||
|
UScellular |
|
TDS Telecom |
|
TDS Corporate & Other |
|
Intercompany Eliminations |
|
TDS Consolidated |
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 150 |
|
$ 37 |
|
$ 90 |
|
$ (41) |
|
$ 236 |
|
|
|
|
|
|
|
|
|
|
Licenses and other intangible assets |
$ 4,693 |
|
$ 187 |
|
$ 5 |
|
$ — |
|
$ 4,885 |
Investment in unconsolidated entities |
461 |
|
4 |
|
48 |
|
(8) |
|
505 |
|
$ 5,154 |
|
$ 191 |
|
$ 53 |
|
$ (8) |
|
$ 5,390 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
$ 2,576 |
|
$ 2,402 |
|
$ 84 |
|
$ — |
|
$ 5,062 |
|
|
|
|
|
|
|
|
|
|
Long-term debt, net: |
|
|
|
|
|
|
|
|
|
Current portion |
$ 20 |
|
$ — |
|
$ 6 |
|
$ — |
|
$ 26 |
Non-current portion |
3,044 |
|
3 |
|
1,033 |
|
— |
|
4,080 |
|
$ 3,064 |
|
$ 3 |
|
$ 1,039 |
|
$ — |
|
$ 4,106 |
TDS Telecom Highlights (Unaudited) |
|||||||||||
|
|||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
2023 |
|
2022 |
|
2023 vs. 2022 |
(Dollars in millions) |
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
Wireline, Incumbent |
$ 88 |
|
$ 87 |
|
1 % |
|
$ 352 |
|
$ 350 |
|
1 % |
Wireline, Expansion |
23 |
|
14 |
|
61 % |
|
75 |
|
49 |
|
53 % |
Cable |
69 |
|
67 |
|
2 % |
|
273 |
|
270 |
|
1 % |
Total residential |
179 |
|
168 |
|
6 % |
|
700 |
|
669 |
|
5 % |
Commercial |
37 |
|
43 |
|
(13) % |
|
155 |
|
173 |
|
(10) % |
Wholesale |
45 |
|
45 |
|
(1) % |
|
172 |
|
177 |
|
(3) % |
Total service revenues |
261 |
|
256 |
|
2 % |
|
1,027 |
|
1,019 |
|
1 % |
Equipment revenues |
— |
|
— |
|
(22) % |
|
1 |
|
1 |
|
(12) % |
Total operating revenues |
261 |
|
257 |
|
2 % |
|
1,028 |
|
1,020 |
|
1 % |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
104 |
|
110 |
|
(5) % |
|
423 |
|
418 |
|
1 % |
Cost of equipment and products |
— |
|
— |
|
N/M |
|
— |
|
1 |
|
(26) % |
Selling, general and administrative expenses |
82 |
|
83 |
|
(1) % |
|
326 |
|
313 |
|
4 % |
Depreciation, amortization and accretion |
65 |
|
56 |
|
17 % |
|
245 |
|
215 |
|
14 % |
Loss on impairment of goodwill |
547 |
|
— |
|
N/M |
|
547 |
|
— |
|
N/M |
(Gain) loss on asset disposals, net |
1 |
|
3 |
|
(59) % |
|
10 |
|
7 |
|
31 % |
Total operating expenses |
799 |
|
252 |
|
N/M |
|
1,551 |
|
954 |
|
63 % |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ (538) |
|
$ 5 |
|
N/M |
|
$ (523) |
|
$ 66 |
|
N/M |
|
N/M - Percentage change not meaningful. |
Numbers may not foot due to rounding. |
Financial Measures and Reconciliations |
|||||||
|
|||||||
Free Cash Flow |
|||||||
|
|||||||
|
Three Months Ended
|
|
Year Ended
|
||||
TDS Consolidated |
2023 |
|
2022 |
|
2023 |
|
2022 |
(Dollars in millions) |
|
|
|
|
|
|
|
Cash flows from operating activities (GAAP) |
$ 218 |
|
$ 255 |
|
$ 1,142 |
|
$ 1,155 |
Cash paid for additions to property, plant and equipment |
(304) |
|
(367) |
|
(1,211) |
|
(1,161) |
Cash paid for software license agreements |
(37) |
|
(18) |
|
(66) |
|
(23) |
Free cash flow (Non-GAAP)1 |
$ (123) |
|
$ (130) |
|
$ (135) |
|
$ (29) |
|
|||||||
|
Three Months Ended
|
|
Year Ended
|
||||
UScellular |
2023 |
|
2022 |
|
2023 |
|
2022 |
(Dollars in millions) |
|
|
|
|
|
|
|
Cash flows from operating activities (GAAP) |
$ 148 |
|
$ 180 |
|
$ 866 |
|
$ 832 |
Cash paid for additions to property, plant and equipment |
(155) |
|
(192) |
|
(608) |
|
(602) |
Cash paid for software license agreements |
(37) |
|
(17) |
|
(66) |
|
(22) |
Free cash flow (Non-GAAP)1 |
$ (44) |
|
$ (29) |
|
$ 192 |
|
$ 208 |
|
|
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. |
EBITDA, Adjusted EBITDA and Adjusted OIBDA |
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes. |
|
|
Year Ended |
||
UScellular |
2023 |
|
2022 |
(Dollars in millions) |
|
|
|
Net income (GAAP) |
$ 58 |
|
$ 35 |
Add back or deduct: |
|
|
|
Income tax benefit |
53 |
|
37 |
Income before income taxes (GAAP) |
111 |
|
72 |
Add back: |
|
|
|
Interest expense |
196 |
|
163 |
Depreciation, amortization and accretion expense |
656 |
|
700 |
EBITDA (Non-GAAP) |
963 |
|
935 |
Add back or deduct: |
|
|
|
Expenses related to strategic alternatives review |
8 |
|
— |
Loss on impairment of licenses |
— |
|
3 |
(Gain) loss on asset disposals, net |
17 |
|
19 |
(Gain) loss on sale of business and other exit costs, net |
— |
|
(1) |
(Gain) loss on license sales and exchanges, net |
(2) |
|
— |
Adjusted EBITDA (Non-GAAP) |
986 |
|
956 |
Deduct: |
|
|
|
Equity in earnings of unconsolidated entities |
158 |
|
158 |
Interest and dividend income |
10 |
|
8 |
Adjusted OIBDA (Non-GAAP) |
$ 818 |
|
$ 790 |
Net income excluding
The following non-GAAP financial measures present certain information in the table below excluding the effect of the goodwill impairment charge at
|
Three Months Ended
|
|
Year Ended
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
(Dollars in millions) |
|
|
|
|
|
|
|
Net loss attributable to TDS common shareholders (GAAP) |
$ (523) |
|
$ (43) |
|
$ (569) |
|
$ (7) |
Adjustments: |
|
|
|
|
|
|
|
Loss on impairment of goodwill |
547 |
|
— |
|
547 |
|
— |
Deferred tax benefit on the tax-amortizable portion of the impaired |
(36) |
|
— |
|
(36) |
|
— |
Subtotal of Non-GAAP adjustments |
511 |
|
— |
|
511 |
|
— |
Net loss attributable to TDS common shareholders excluding goodwill impairment |
(12) |
|
(43) |
|
(58) |
|
(7) |
Noncontrolling interest adjustment to compute earnings (loss) |
— |
|
— |
|
(1) |
|
(1) |
Net loss attributable to TDS common shareholders excluding goodwill impairment |
$ (12) |
|
$ (43) |
|
$ (59) |
|
$ (8) |
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
113 |
|
113 |
|
113 |
|
114 |
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share attributable to TDS common shareholders (GAAP) |
$ (4.64) |
|
$ (0.38) |
|
$ (5.06) |
|
$ (0.07) |
Adjustments: |
|
|
|
|
|
|
|
Loss on impairment of goodwill |
4.85 |
|
— |
|
4.85 |
|
— |
Deferred tax benefit on the tax-amortizable portion of the impaired |
(0.32) |
|
— |
|
(0.32) |
|
— |
Diluted earnings (loss) per share attributable to TDS common shareholders excluding |
$ (0.11) |
|
$ (0.38) |
|
$ (0.53) |
|
$ (0.07) |
View original content:https://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2023-results-302063497.html
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