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]

Group 1 - The board of directors of Telephone and Data Systems, Inc. (TDS) has declared dividends for the first quarter of 2025 on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares [1][5] - TDS is paying a quarterly dividend of $0.04 per Common Share and Series A Common Share, payable on March 31, 2025, to holders of record on March 17, 2025 [5] - TDS is paying a quarterly dividend of $414.0625 per share on the 6.625% Series UU Preferred shares, with holders of depositary shares receiving $0.4140625 per depositary share, payable on March 31, 2025, to holders of record on March 16, 2025 [5] - TDS is paying a quarterly dividend of $375.0000 per share on the 6.000% Series VV Preferred shares, with holders of depositary shares receiving $0.3750000 per depositary share, payable on March 31, 2025, to holders of record on March 16, 2025 [5] Group 2 - TDS provides wireless, broadband, video, and voice services to approximately 5.5 million connections nationwide through its businesses, UScellular and TDS Telecom [3] - TDS was founded in 1969 and is headquartered in Chicago, employing approximately 7,900 associates as of December 31, 2024 [3]

Core Insights - TDS Telecom reported total operating revenues of $1,240 million for Q4 2024, a decrease from $1,313 million in Q4 2023, with a net loss of $11 million compared to a loss of $523 million in the same period last year [1][29] - For the full year 2024, TDS reported total operating revenues of $4,964 million, down from $5,160 million in 2023, with a net loss of $97 million compared to a loss of $569 million in 2023 [3][29] - The company plans to expand its fiber network to over 150,000 new marketable service addresses in 2025, continuing its investment in high-quality networks [7][11] Financial Performance - TDS Telecom's Q4 2024 net income attributable to common shareholders was $(11) million, or $(0.10) per share, compared to $(523) million, or $(4.64) per share in Q4 2023 [1][30] - For the year ended December 31, 2024, net income attributable to common shareholders was $(97) million, or $(0.85) per share, compared to $(569) million, or $(5.06) per share in 2023 [3][30] - Adjusted EBITDA for 2025 is estimated to be between $320 million and $360 million, with total operating revenues projected between $1,030 million and $1,070 million [13][12] Operational Highlights - TDS Telecom delivered 129,000 new marketable fiber service addresses in 2024, exceeding its full-year goal [11][6] - UScellular, a subsidiary of TDS, improved its wireless operating results, with fixed wireless customers growing by 27% [11][6] - The company is focused on ongoing fiber expansion and has entered into multiple transactions to sell wireless operations and spectrum assets to T-Mobile and other operators [7][8][9] Strategic Initiatives - TDS Telecom is actively pursuing a strategic review of alternatives at UScellular, which includes the sale of its wireless operations and spectrum assets [6][7] - The company aims to enhance its mid-band spectrum deployment to improve speed and capacity for its customers [11][6] - TDS Telecom's capital expenditures for 2025 are estimated to be between $375 million and $425 million, reflecting ongoing investments in network infrastructure [13][12]

Core Insights - Telephone & Data Systems (TDS) shares have increased by 9.4% over the past month, reaching a new 52-week high of $39.54, and have gained 15.8% since the beginning of the year, outperforming the Zacks Utilities sector and the Zacks Wireline - National industry, which returned 1.6% and 15.8% respectively [1][2]. Financial Performance - TDS has consistently exceeded earnings expectations, reporting an EPS of $0.01 against a consensus estimate of -$0.14 in its last earnings report on November 1, 2024 [2]. - For the current fiscal year, TDS is projected to have earnings of -$0.20 per share on revenues of $4.95 billion, while for the next fiscal year, earnings are expected to be -$0.15 per share on revenues of $4.77 billion, reflecting year-over-year changes of 81.27% and -3.6% respectively [3]. Valuation Metrics - TDS is currently at a 52-week high, prompting an analysis of valuation metrics to assess potential future stock performance [4]. - The Zacks Style Scores indicate TDS has a Value Score of B, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of B [5][6]. Zacks Rank - TDS holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, suggesting potential for TDS shares in the near future [7].

CHICAGO, Feb. 7, 2025 /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS) and United States Cellular Corporation (NYSE: USM) will be webcasting their fourth quarter operating results conference call on February 21, 2025, at 9:00 a.m. Central Time. The companies plan to release their financial results on February 21, 2025. To listen to the webcast, please visit the events & presentations pages of investors.tdsinc.com or investors.uscellular.com. The webcast will be both live and on-demand. It is rec ...

Michael (Mike) Dion is an FP&A, Corporate Finance, and Small Business expert who spent the last 12 years working in the Fortune 100, building a startup's finance and accounting department, advising small businesses, and guiding non-profit organizations as a board member. He has finance experience across multiple industries, including Telecom, Media and Entertainment, Hospitality, and Construction. He founded F9 Finance, a website that helps Finance professionals accelerate their careers; and simplifies Fina ...

PHILADELPHIA, Jan. 31, 2025 (GLOBE NEWSWIRE) -- A federal court has determined that multiple statements made by Telephone and Data Systems, Inc. (NYSE: TDS) officers of were likely made with an intent to deceive the investing public, and therefore a securities fraud class action complaint against Telephone and Data Systems, Inc. and certain of its officers has survived defendants’ motion to dismiss that complaint. If you have continuously held TDS shares since prior to May 6, 2022, you may be entitled to se ...

Have you been paying attention to shares of Telephone & Data Systems (TDS) ? Shares have been on the move with the stock up 4.9% over the past month. The stock hit a new 52-week high of $36.66 in the previous session. Telephone & Data Systems has gained 4.9% since the start of the year compared to the 8.7% move for the Zacks Utilities sector and the 95% return for the Zacks Wireline - National industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it ...