Core Viewpoint - United States Cellular Corporation has entered into an agreement with AT&T to sell a portion of its retained spectrum licenses for $1.018 billion, as part of a strategy to monetize spectrum not included in the proposed sale to T-Mobile [1][2]. Transaction Overview - The agreement involves the sale of 1,250 million MHz-Pops of 3.45 GHz and 331 million MHz-Pops of 700 MHz B/C block licenses for a total of $1.018 billion, payable in cash with potential adjustments [5]. - Following this transaction, UScellular will have monetized approximately 55% of its spectrum holdings (excluding mmWave), totaling around $2.02 billion, and approximately 70% when including the proposed T-Mobile transaction [2]. Spectrum Holdings - After the proposed sales, UScellular will retain 1.86 billion MHz-Pops of low and mid-band spectrum and 17.2 billion MHz-Pops of mmWave spectrum, with a significant portion of retained value in the C-band spectrum [3]. - The C-band licenses are positioned in an attractive mid-band frequency, beneficial for speed and capacity, with a robust 5G ecosystem supporting them [4]. Regulatory and Approval Aspects - The transaction with AT&T is contingent upon the closing of the sale of UScellular's wireless operations and select spectrum assets to T-Mobile, requiring regulatory approvals [6][7]. - TDS, the majority shareholder of UScellular, has provided written consent for the AT&T transaction, eliminating the need for further shareholder action [8]. Company Background - United States Cellular Corporation offers a range of wireless products and services, serving 4.5 million retail connections across 21 states, with 83% ownership by Telephone and Data Systems, Inc. as of September 30, 2024 [10].

Group 1 - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries including Telecom, Media and Entertainment, Hospitality, and Construction [1] - He founded F9 Finance, a platform aimed at helping finance professionals advance their careers and simplifying finance concepts for better accessibility [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and a preference for dividend-paying stocks [1] Group 2 - Cash flow is highlighted as a critical factor not only for companies but also for investors at all levels, indicating its importance in investment decisions [1]

Financial Data and Key Metrics Changes - The company reported a 2% decline in service revenues, driven by a decrease in the average subscriber base, partially offset by an increase in postpaid ARPU by 2% [32][25] - Adjusted operating income before depreciation and amortization (OIBDA) improved by 1%, while adjusted EBITDA, which includes earnings from equity method investments, increased by 3% [33] - Free cash flow for the year-to-date through September 30th was $331 million, a $94 million increase over the prior year, allowing for debt repayment of $163 million in the first nine months of 2024 [37] Business Line Data and Key Metrics Changes - UScellular improved retail net losses by 20,000 subscribers year-over-year, with postpaid handset net losses improving by 10,000 due to reduced churn [21][23] - TDS Telecom's fiber broadband strategy contributed to a 2% increase in total operating revenue and a 21% increase in adjusted EBITDA for the quarter [41] - The company achieved a milestone where 50% of service addresses are now served by fiber, with a year-over-year growth of 9% in total service addresses [40][42] Market Data and Key Metrics Changes - The overall pool of available subscribers in the industry decreased year-over-year, but UScellular's share of growth ads increased, allowing for flat postpaid handset growth ads [23] - Competitive pricing and promotional strategies in the prepaid segment led to improved subscriber momentum, despite ongoing competitive intensity [24] - The company noted a slowdown in new tenant and amendment activity in the Tower segment due to moderated capital expenditures in the industry [35] Company Strategy and Development Direction - The company is focused on monetizing retained spectrum, with agreements to sell certain portions for over $1 billion, highlighting the demand for these licenses [17][19] - The strategic focus includes optimizing resources and divesting non-strategic assets, such as the sale of OneNeck IT solutions and certain TDS Telecom assets [8][9] - Future 5G network investments will predominantly be dedicated to deploying mid-band spectrum to enhance speed and capacity [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term benefits of the T-Mobile transaction, which is expected to close in mid-2025, providing greater scale and a competitive network [15] - The company remains optimistic about its operational objectives and long-term strategic goals, especially with improved profitability and cash flow [11][10] - Management acknowledged the challenges posed by recent natural disasters but emphasized the team's efforts to support affected communities [6][14] Other Important Information - The company announced the upcoming departure of CFO Michelle Brukwicki, with Kris Bothfeld set to take over the role [12][13] - The company is managing its balance sheet through long-dated debt maturities issued at historically low interest rates, maintaining reasonable leverage and sufficient liquidity [11] Q&A Session Summary Question: Clarification on T-Mobile and Verizon Spectrum Sales - Management confirmed that the cash tax estimates for the spectrum sales are net of NOLs and interest carry forwards, with TDS having more attributes than UScellular [56] Question: Impact of T-Mobile Deal on Spectrum Availability - It was clarified that the T-Mobile deal may close, but regulatory approval for the Verizon Spectrum deal may not be immediate [58] Question: Long-term Wireless Strategy and AI Impact - Management noted that while there hasn't been a super cycle in device upgrades, AI is expected to enhance operational efficiency and customer experience in care centers [64][66] Question: Update on ILEC and Cable Divestitures - Management confirmed that the divestitures mentioned are consistent with previous disclosures, including small Virginia ILECs and Texas cable properties [69] Question: Future of Tower Portfolio and Co-location Rates - Management expressed optimism about increasing co-location rates and the potential for future acquisitions, while being cautious about current valuations in the market [75][76] Question: MVNO Launch and Future Agreements - The MVNO is being launched through NCTC partnerships, and management is open to exploring agreements with scaled wireless operators in the future [79] Question: Broadband Customer Acquisition Strategies - Management highlighted the importance of enhancing door-to-door sales efforts to improve broadband penetration in new markets [100]

Core Viewpoint - U.S. Cellular Corporation (USM) reported mixed results for Q3 2024, with net income exceeding estimates but revenue falling short due to a decline in retail connections [1][3][4]. Financial Performance - The company reported a net loss of $79 million, equating to a loss of 92 cents per share, while net income excluding license impairment charges was $23 million or 26 cents, matching the previous year's quarter [3]. - Operating revenues were $922 million, down from $963 million year-over-year, missing the Zacks Consensus Estimate of $941 million [4]. - Service revenues decreased to $747 million from $762 million, beating the Zacks Consensus Estimate of $742.31 million, while equipment sales fell to $175 million from $201 million [5]. Customer Metrics - Fixed wireless customers grew by 32% year-over-year to 140,000, and the tower business generated revenues of $59 million, up 2% year-over-year [6]. - Total postpaid connections declined to 3,999,000 from 4,159,000 year-over-year, while total prepaid connections decreased to 452,000 from 462,000 [7]. Revenue and Churn Rates - Postpaid average revenues per account improved to $131.81 from $130.91, with postpaid churn rates of 1.25% compared to 1.30% a year ago [8]. - Prepaid ARPU was $32.01, down from $33.44, while the prepaid churn rate decreased to 3.30% from 3.68% [8]. Operational Metrics - Adjusted EBITDA for the quarter was $269 million, up from $263 million in the prior-year quarter, while adjusted OIBDA was $222 million, slightly up from $220 million [9]. - Total operating expenses increased to $1.01 billion, resulting in an operating loss of $90 million compared to an income of $57 million in the previous year [9]. Cash Flow and Liquidity - Cash generated from operating activities was $245 million, down from $329 million year-over-year, with cash and cash equivalents at $272 million and long-term debt at $2.88 billion as of September 30, 2024 [10]. Future Outlook - For 2024, U.S. Cellular estimates service revenues between $2,950 million and $3,000 million, with adjusted OIBDA projected between $800 million and $875 million [11].

Core Insights - United States Cellular (USM) reported $922 million in revenue for Q3 2024, a year-over-year decline of 4.3% [1] - The EPS for the same period was $0.26, unchanged from the previous year, with a surprise of +44.44% compared to the consensus estimate of $0.18 [1] Financial Performance - Revenue of $922 million was below the Zacks Consensus Estimate of $940.51 million, resulting in a surprise of -1.97% [1] - Net additions in Retail Connections - Postpaid were -28 million, better than the average estimate of -40 million [3] - Total connections stood at 4.45 million, slightly below the estimated 4.47 million [3] - Gross additions in Retail Connections - Postpaid were 123 million, exceeding the average estimate of 109.14 million [3] - Operating Revenues from Service were $747 million, slightly above the average estimate of $742.31 million, reflecting a year-over-year change of -2% [3] - Net operating revenues from Service-Retail were $669 million, compared to the average estimate of $667.13 million, also showing a year-over-year decline of -2.6% [3] - Operating Revenues from Equipment sales were $175 million, below the average estimate of $187.10 million, with a year-over-year decline of -12.9% [3] Stock Performance - Shares of U.S. Cellular have returned +11.5% over the past month, contrasting with the Zacks S&P 500 composite's -1% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

United States Cellular (USM) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 44.44%. A quarter ago, it was expected that this wireless telecommunications service provider would post earnings of $0.10 per share when it actually produced earnings of $0.20, delivering a surprise of 100%. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-09712 UNITED STATES CELLULAR CORPORATION (Exact name of Registrant as specified in its charter) Delaware 62-1147325 (State o ...

1 Exhibit 99.1 NEWS RELEASE As previously announced, UScellular will hold a teleconference on November 1, 2024, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.uscellular.com. UScellular reports third quarter 2024 results CHICAGO (November 1, 2024) — United States Cellular Corporation (NYSE:USM) reported total operating revenues of $922 million for the third quarter of 2024, versus $963 million for the same period one year ago. Service revenues totaled $747 million ...

CHICAGO, Nov. 1, 2024 /PRNewswire/ --As previously announced, UScellular will hold a teleconference on November 1, 2024, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.uscellular.com.United States Cellular Corporation (NYSE:USM) reported total operating revenues of $922 million for the third quarter of 2024, versus $963 million for the same period one year ago. Service revenues totaled $747 million, versus $762 million for the same period one year ago. Net income ...

Next Level Aviation® to continue to support Pratt & Whitney CSA through consignment of used serviceable engine accessories for an additional three yearsDANIA BEACH, Fla., Oct. 29, 2024 /PRNewswire/ -- Next Level Aviation® (NLA), a leader in the global distribution of used serviceable materials (USM), has extended an agreement with Pratt & Whitney Commercial Serviceable Assets (CSA), regarding the sale of used serviceable material (USM) for aircraft engines for an additional three years. This further enhance ...