SAN DIEGO, March 25, 2025 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announced an update in the lawsuit that is pending for certain investors in NYSE: TDS shares. Investors who purchased shares of Telephone and Data Systems, Inc. prior to May 2022 and continue to hold any of those NYSE: TDS shares also have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554. On May 2, 2023, a NYSE: TDS investor filed a lawsuit against Tele ...

Core Insights - US Signal has been recognized on the 2025 Tech Elite 250 list by CRN, marking the second consecutive year of this honor [1][2] - The company experienced significant growth in 2024, attributed to investments in technical capabilities and acquisitions [3] Company Achievements - US Signal made substantial investments in 2024, including the purchase of data centers in Indianapolis and Detroit, and the acquisition of OneNeck IT Solutions LLC and OneNeck Data Center Holdings LLC [3] - The launch of the OpenCloud product has positioned US Signal as a revolutionary player in the cloud hosting market [3] - Additional recent honors include recognition on CRN's 2024 Cloud 100 List and TMCNet's Zero Trust Security Excellence Awards [4] Certifications and Partnerships - US Signal has received certifications from major technology vendors such as Acronis, Cisco, Microsoft, and VMware, among others [5] - The company has expanded its technology partnerships in 2024, welcoming new partners like Insight and Cato Networks [5][6] - These certifications and partnerships are crucial for maintaining high service standards in a rapidly evolving digital landscape [6] Company Overview - Established in 2001, US Signal is a leading digital infrastructure provider in the Midwest, specializing in managed and professional services [7] - The company operates an extensive fiber network and offers services including network connectivity, cloud hosting, and disaster recovery solutions [7]

Neils ChristensenNeils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @Neils_cShareDisclaimer: The views expressed ...

Core Insights - Telephone and Data Systems, Inc. (TDS) reported strong fourth-quarter 2024 results, with both revenue and net income exceeding Zacks Consensus Estimates despite a year-over-year revenue decline due to softness in the U.S. Cellular segment [1][5]. Financial Performance - TDS generated net sales of $1.24 billion in the fourth quarter, down from $1.31 billion in the same quarter last year, but beat the Zacks Consensus Estimate by $14 million [5]. - The company reported a GAAP net loss of $11 million or 10 cents per share, significantly improved from a net loss of $523 million or $4.64 per share in the year-ago quarter [3][4]. - For the full year 2024, TDS reported revenues of $4.96 billion, down from $5.2 billion in 2023 [5]. Segment Performance - U.S. Cellular revenues were $970 million, a 3% decline year-over-year, impacted by reduced postpaid retail and prepaid connections, although growth in fixed wireless customers and tower revenues provided some offset [6]. - TDS Telecom contributed $264 million to revenues, slightly up from $261 million in the prior-year quarter, but fell short of the estimate of $266.9 million [8]. Cost Management - The company focused on cost optimization, resulting in lower operating expenses, which contributed to a narrower loss during the quarter [3][10]. - Total cash expenses were $811 million, marginally down from $812 million in the prior-year quarter [6]. Customer Metrics - Total residential connections decreased to 935,600 from 952,900 in the year-ago quarter, while residential revenues per connection increased to $64.72 from $62.74 [8]. - The company saw an increase in customers opting for higher-speed broadband, with 22% choosing 1 Gigabit+ speed compared to 16% in the prior-year quarter [9]. Cash Flow and Outlook - TDS generated $1.145 billion of net cash from operating activities in 2024, slightly up from $1.142 billion in the prior-year quarter [12]. - For 2025, management expects total operating revenues at TDS Telecom to be in the range of $1.03-$1.07 billion, with adjusted EBITDA estimated between $320-$360 million [13].

Financial Data and Key Metrics Changes - In 2024, adjusted EBITDA increased by 7% on a consolidated basis, while free cash flow rose to $280 million, an increase of $88 million over 2023, attributed to profitability improvements and reduced capital expenditures [10][32][37] - Capital expenditures decreased by 24% for the full year, contributing to the increase in free cash flow [10][11] - Service revenues for the fourth quarter declined by 2%, primarily due to a decrease in the average retail subscriber base [35] Business Line Data and Key Metrics Changes - U.S. Cellular improved its subscriber results, with postpaid handset gross additions increasing by 16% year-over-year, although net retail subscriber adds remained negative [26][34] - TDS Telecom increased residential revenues by 6% in 2024, driven by growth in broadband connections and average revenue per connection [49][55] - TDS Telecom's adjusted EBITDA grew by 23% year-over-year, reflecting effective cost management and revenue growth [50][56] Market Data and Key Metrics Changes - U.S. Cellular's fixed wireless service surpassed 150,000 customers, indicating growth in this segment [26] - Data usage by customers increased by 37% year-over-year, highlighting a growing demand for data services [28] - TDS Telecom's fiber service addresses grew by 6% year-over-year, with a significant increase in take rates for higher broadband speeds [53][55] Company Strategy and Development Direction - The company aims to optimize its portfolio for long-term success, focusing on growth areas and divesting non-core assets [9] - U.S. Cellular plans to close the T-Mobile transaction, which is seen as a transformative step, and will focus on strengthening its remaining assets, particularly in the tower business [14][15] - TDS Telecom is committed to expanding its fiber strategy, targeting 150,000 new fiber service addresses in 2025 and increasing its marketable fiber service addresses to 1.8 million [61][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction, emphasizing the importance of closing the T-Mobile transaction and optimizing capital structure [14][15][21] - The competitive environment remains challenging, but management believes that ongoing investments in customer retention and network enhancements will drive future growth [29][32] - The company is focused on maintaining a strong balance sheet and returning capital to shareholders post-transaction [20][32] Other Important Information - The company has made significant investments in 5G deployment and fiber expansion, with a nearly 30% increase in fiber footprint over the past three years [10][48] - U.S. Cellular's equity method investments generated $169 million in cash distributions in 2024, contributing to overall financial health [24] Q&A Session Summary Question: Why was now the right time for the leadership change? - The board felt that the current transformative time, with significant transactions underway, warranted a change in leadership to guide the company through this phase [79] Question: Will there be changes in tower reporting? - The company plans to provide AFFO reporting post-T-Mobile transaction close, but structuring the tower business as a REIT is not currently on the agenda [83][85] Question: What is the long-term vision for TDS? - The focus is on executing 2025 priorities to position the company for long-term growth in both the fiber and tower businesses [115] Question: How will capital allocation priorities be determined post-transaction? - The company will evaluate capital allocation based on cash flows from the tower business and wireless partnerships, with potential for dividends in the future [124] Question: How is TDS Telecom addressing net additions and conversion rates? - The company is enhancing its sales and marketing efforts, particularly through door-to-door sales teams, to improve conversion rates in fiber markets [129]

Core Insights - Telephone & Data Systems (TDS) reported a revenue of $1.24 billion for the quarter ended December 2024, reflecting a 5.6% decrease year-over-year, while EPS improved to -$0.09 from -$0.11 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.23 billion by 1.12%, and the EPS surpassed the consensus estimate of -$0.32 by 71.88% [1] Financial Performance Metrics - US Cellular Postpaid ARPU was reported at $51.73, below the average estimate of $52.46 [4] - US Cellular Retail Connections Prepaid experienced a net loss of 4 thousand, worse than the estimated loss of 1 thousand [4] - The Postpaid churn rate remained stable at 1.3%, matching analyst estimates [4] - Total Postpaid connections at the end of the period reached 3.99 million, slightly above the estimate of 3.97 million [4] - Operating Revenues for U.S. Cellular were $970 million, exceeding the average estimate of $937.45 million, but showing a year-over-year decline of 3% [4] - TDS Telecom's Operating Revenues were reported at $264 million, close to the average estimate of $264.60 million, with a year-over-year increase of 1% [4] - TDS Telecom's Wholesale Service revenues were $44 million, slightly above the estimate of $40.96 million, but down 1.3% year-over-year [4] - Other Operating Revenues were significantly lower at $6 million compared to the estimated $36.33 million, marking an 88.2% decline year-over-year [4] - Residential Wireline Service revenues were $86 million, below the estimate of $89.17 million, reflecting a 2.4% decrease year-over-year [4] - Residential Wireline Expansion revenues increased by 37.5% year-over-year to $31 million, surpassing the estimate of $29.88 million [4] - Cable Service revenues were $65 million, below the estimate of $67.76 million, indicating a 5.1% decline year-over-year [4] - Commercial Service revenues were reported at $37 million, exceeding the average estimate of $34.13 million, with a year-over-year decline of 1.1% [4] Stock Performance - TDS shares have returned +10.3% over the past month, outperforming the Zacks S&P 500 composite's +2.2% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]

Group 1 - Telephone & Data Systems (TDS) reported a quarterly loss of $0.09 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.32, representing an earnings surprise of 71.88% [1] - The company posted revenues of $1.24 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.12%, although this is a decrease from $1.31 billion in the same quarter last year [2] - TDS shares have increased approximately 16.2% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] Group 2 - The earnings outlook for TDS is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for estimate revisions for TDS is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.03 on $1.2 billion in revenues, and for the current fiscal year, it is -$0.20 on $4.77 billion in revenues [7] Group 3 - The Wireline - National industry, to which TDS belongs, is currently ranked in the top 1% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Fourth Quarter 2024 Results 2024 Accomplishments 2025 Strategic Priorities 2025 Guidance February 21, 2025 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 All information set forth in this presentation about Telephone and Data Systems, Inc., including its subsidiaries UScellular and TDS Telecom, except historical and factual information, represents forward-looking statements. These statements are based on current estimates, projections, and assumptions, which involve certain ...

Financial Performance - TDS reported a net loss attributable to common shareholders of $97 million for the year ended December 31, 2024, compared to a net loss of $569 million in 2023[204]. - The company incurred a non-cash charge of $136 million related to the impairment of certain wireless spectrum licenses in 2024, while the 2023 loss included a $547 million goodwill impairment[204]. - Total operating revenues decreased by 4% to $4,964 million in 2024 from $5,160 million in 2023, with UScellular revenues down 3% and TDS Telecom revenues up 3%[208]. - Total operating expenses decreased by 12% to $4,901 million in 2024 from $5,574 million in 2023, primarily due to a significant reduction in TDS Telecom expenses by 38%[208]. - Net income attributable to TDS common shareholders improved by 83% to a loss of $97 million in 2024 compared to a loss of $569 million in 2023[208]. - Adjusted EBITDA increased by 7% to $1,360 million in 2024 from $1,267 million in 2023, driven by lower operating expenses[208]. - The company reported a significant reduction in total operating expenses, down 38% to $956 million in 2024, compared to $1,551 million in 2023[282]. - Adjusted EBITDA increased by 23% to $350 million in 2024, up from $285 million in 2023[282]. - Net income improved to $85 million in 2024, a significant recovery from a net loss of $483 million in 2023[282]. - Operating income for 2024 was $105 million, up from a loss of $523 million in 2023[382]. Revenue and Connections - TDS provides services to approximately 5.5 million connections nationwide, including wireless, broadband, video, and voice services[192]. - UScellular served 4.4 million retail connections as of December 31, 2024, including 4.0 million postpaid and 0.4 million prepaid connections[218]. - Total operating revenues for 2024 were $3,667 million, a decrease of 4% compared to 2023, driven by declines in retail service and equipment sales revenues[233]. - Retail service revenues decreased by 2% in 2024, primarily due to a decrease in average postpaid and prepaid connections, despite an increase in Postpaid ARPU[238]. - Total residential connections decreased by 2% to 935,600 in 2024 from 952,900 in 2023, with broadband connections growing by 2% to 553,000[273]. - Residential revenue per connection increased by 5% in 2024, primarily due to price increases, with 81% of residential broadband customers opting for speeds of 100 Mbps or greater[279]. - Total capital expenditures decreased by 5% in 2024 to $554 million, reflecting a reduction in the number of owned towers placed into service[233]. Capital Expenditures and Investments - Capital expenditures decreased by 24% to $906 million in 2024 from $1,197 million in 2023, reflecting a strategic focus on cost management[208]. - TDS Telecom's capital expenditures for 2024 were $324 million, compared to $577 million in 2023 and $556 million in 2022[320]. - TDS expects capital expenditures for 2025 to be between $375 million and $425 million[320]. - Cash flows used for investing activities in 2024 were $754 million, primarily due to payments for property, plant, and equipment of $884 million[334]. - Cash paid for additions to property, plant and equipment decreased to $884 million in 2024 from $1,211 million in 2023, indicating improved capital efficiency[384]. Debt and Liquidity - The total long-term debt obligation as of December 31, 2024, was $4,164 million, with a weighted average interest rate of 6.6%[373]. - TDS's total debt repayments in 2024 included $200 million on the revolving credit agreement and $188 million on the receivables securitization agreement[335]. - TDS Telecom's liquidity is supported by $474 million in available undrawn borrowing capacity as of December 31, 2024[299]. - TDS's cash, cash equivalents, and restricted cash increased by $114 million in 2024, with net cash provided by operating activities amounting to $1,145 million[332]. Strategic Transactions - UScellular agreed to sell its wireless operations and select spectrum assets to T-Mobile for a purchase price of $4,400 million, expected to close in mid-2025[198]. - UScellular entered into a License Purchase Agreement with Verizon for total proceeds of $1,000 million, with a book value of the licenses at $586 million as of December 31, 2024[200]. - A separate License Purchase Agreement with AT&T was signed for total proceeds of $1,018 million, with a book value of $859 million for the licenses involved[201]. - The strategic alternatives review process is ongoing as UScellular seeks to close transactions signed during 2024 and monetize additional spectrum assets[202]. - TDS and UScellular entered into agreements to sell wireless operations and spectrum assets to T-Mobile, Verizon, and AT&T, with potential significant impacts on financial condition[364]. Impairments and Charges - Loss on impairment of licenses increased to $136 million in 2024 due to a wireless spectrum license impairment charge recorded in Q3 2024[233]. - TDS incurred a loss on impairment of intangible assets amounting to $137 million in 2024, compared to $547 million in 2023[380]. - The impairment loss of $136 million was primarily related to the retained high-band spectrum unit, which had a carrying value of $161 million post-impairment[347]. Market and Regulatory Environment - The FCC's 5G Fund for Rural America will distribute up to $9 billion over ten years to enhance 5G connectivity in rural areas[354]. - The FCC adopted new rules for the 5G Fund auction process, but the auction start date has not been announced[355]. - TDS must assess the likelihood of realizing deferred income tax assets based on future taxable income, which involves significant management judgment[351]. - The company faces risks related to intense competition, operational challenges, and potential changes in regulatory support that could adversely affect financial performance[364]. Other Financial Metrics - Free cash flow for 2024 was $194 million, a recovery from a negative cash flow of $135 million in 2023[384]. - Interest expense increased by 15% to $279 million in 2024 due to higher borrowings under term loan agreements[210]. - TDS's credit ratings as of December 31, 2024, were Ba1 from Moody's, BB from Standard & Poor's, and BB+ from Fitch Ratings, indicating sub-investment grade status[315].

Financial Performance - TDS reported total operating revenues of $1,240 million for Q4 2024, a decrease of 5.5% from $1,313 million in Q4 2023[3] - Net income attributable to TDS common shareholders for Q4 2024 was $(11) million, improving from $(523) million in Q4 2023[3] - For the full year 2024, total operating revenues were $4,964 million, down from $5,160 million in 2023, representing a decline of 3.8%[5] - UScellular operating revenues decreased by 3% to $970 million for the three months ended December 31, 2024, compared to $1,000 million in 2023[30] - TDS Telecom operating revenues increased by 1% to $264 million for the three months ended December 31, 2024, compared to $261 million in 2023[30] - Total operating expenses decreased by 35% to $1,203 million for the three months ended December 31, 2024, compared to $1,837 million in 2023[30] - TDS reported a free cash flow of $(52) million for Q4 2024, compared to $(123) million in Q4 2023, while the full year free cash flow improved to $194 million from $(135) million[51] - UScellular's free cash flow for Q4 2024 was $(53) million, a decrease from $(44) million in Q4 2023, with a full year free cash flow of $280 million, up from $192 million[51] Customer Metrics - The company achieved a 27% growth in fixed wireless customers during 2024[8] - As of December 31, 2024, the total postpaid connections were 3,985,000, a decrease from 4,106,000 in the same period last year, reflecting a net loss of 14,000 connections[24] - The average revenue per user (ARPU) for postpaid was $51.73, slightly down from $51.61 a year ago, while the average revenue per account (ARPA) was $131.10, a decrease from $131.63[24] - The churn rate for postpaid connections increased to 1.29% from 1.22% in the previous year, indicating a decline in customer retention[24] - Total residential connections decreased to 935,600 from 952,900 year-over-year, with total broadband connections remaining stable at 553,000[27] - The total number of residential revenue per connection increased to $64.72 from $62.74 year-over-year, reflecting improved revenue generation per customer[27] - The total number of commercial connections decreased to 190,500 from 210,200 year-over-year, indicating a decline in the commercial segment[27] Capital Expenditures and Investments - Capital expenditures for TDS Telecom are expected to range from $375 million to $425 million in 2025[14] - Capital expenditures for the quarter were $162 million, up from $148 million in the same quarter last year, indicating increased investment in infrastructure[24] - Capital expenditures for UScellular were $162 million in Q4 2024, a 9% increase from $148 million in Q4 2023, while year-to-date capital expenditures decreased by 6%[42] Future Projections - TDS Telecom plans to expand its fiber network to over 150,000 new marketable service addresses in 2025[10] - The estimated total operating revenues for TDS Telecom in 2025 are projected to be between $1,030 million and $1,070 million[14] - Adjusted EBITDA for TDS Telecom is estimated to be between $320 million and $360 million for 2025[14] Income and Earnings - Basic earnings per share attributable to TDS common shareholders improved by 98% to $(0.10) for the three months ended December 31, 2024, compared to $(4.64) in 2023[31] - TDS's net income attributable to common shareholders for Q4 2024 was $(11) million, significantly improved from $(523) million in Q4 2023, while the full year net income was $(97) million compared to $(569) million[54] - TDS Telecom achieved a net income of $34 million in Q4 2024, a significant recovery from a net loss of $503 million in Q4 2023, with a total net income of $85 million for the year 2024 compared to a loss of $483 million in 2023[58] Operational Metrics - TDS Telecom's operating income for Q4 2024 was $49 million, a significant recovery from a loss of $538 million in Q4 2023[47] - UScellular's operating income (loss) for Q4 2024 was $(9) million, compared to $21 million in Q4 2023, indicating a significant decline[42] - UScellular's adjusted OIBDA (Non-GAAP) for Q4 2024 was $167 million, a decrease of 14% from $194 million in Q4 2023[42] - TDS Telecom's EBITDA (Non-GAAP) for Q4 2024 was $124 million, a substantial increase from a loss of $470 million in Q4 2023, with an annual EBITDA of $385 million in 2024 compared to a loss of $272 million in 2023[58] Debt and Assets - Total assets decreased to $13,682 million as of December 31, 2024, from $13,921 million in 2023[36] - Cash and cash equivalents increased to $364 million as of December 31, 2024, compared to $236 million in 2023[36] - Long-term debt decreased slightly to $4,051 million as of December 31, 2024, from $4,080 million in 2023[38] - TDS shareholders' equity decreased to $5,091 million as of December 31, 2024, from $5,202 million in 2023[38]