Core Insights - U.S. Cellular is implementing strategies to enhance subscriber growth and manage churn effectively, focusing on superior network quality and national coverage [1] - The company is expanding its offerings with flat rate plans and unlimited plans to improve average revenue per user while navigating competitive pressures in the U.S. wireless market [1] - The fixed wireless segment is experiencing significant growth, with a 32% year-over-year increase in customers, reaching 140,000 [2] Financial Performance - U.S. Cellular's shares have increased by 54.6% over the past year, outperforming the industry growth of 27.7% [6] - The company has achieved an earnings surprise of 40.45% on average over the last four quarters, indicating strong financial performance [13] - The quick ratio improved to 1.39 in 2024 from 1.33 in 2023, and the current ratio increased to 1.57 from 1.55, suggesting better liquidity management [12] Strategic Initiatives - U.S. Cellular is actively reducing its debt and improving liquidity through monetization of spectrum holdings, including a $4.4 billion agreement with T-Mobile for wireless operations and spectrum assets [11] - The company has also entered into a $1 billion agreement with Verizon Communications to divest a portion of its spectrum holdings [11] - Management's focus on cost optimization is contributing to profitability and positioning the company for future growth [6] Market Position - U.S. Cellular's tower rental business is benefiting from geographical diversity and a balanced presence across major wireless carriers, enhancing its revenue streams [2] - The company is optimistic about the potential of millimeter wave spectrum for fixed wireless access, particularly for rural customers [1]

Core Viewpoint - United States Cellular Corporation has experienced a significant share price increase of nearly 53% in 2024 despite losing approximately 96,000 postpaid device subscriptions [1] Spectrum Strategy - United States Cellular has adopted a unique strategy involving the sale of spectrum assets to major telecom companies, which has contributed to the increase in share value [2][3] - The company has sold billions in spectrum assets to T-Mobile, Verizon, and AT&T, with a notable deal involving T-Mobile expected to close in mid-2025 pending regulatory approval [3][5] Spectrum Asset Value - Spectrum is a finite resource, and the demand for it has led to high auction prices, with over $200 billion in spectrum assets auctioned in the U.S. from 2020 to 2022 [4] - United States Cellular has approximately 30% of its spectrum assets remaining after the T-Mobile deal, with 86% of these being C-Band spectrum, which is considered highly valuable for 5G services [5][6] C-Band Spectrum Pricing - The average price of C-Band spectrum has dropped significantly from a record $0.876/MHz/pop in 2021 to $0.106/MHz/pop, representing an 88% decrease [7] - Based on current prices, the company's C-Band spectrum is valued at around $174 million, down from an estimated $1.4 billion at its peak [7] Future Catalysts - Analysts forecast a 12-month stock price target of $80.00 for United States Cellular, indicating a potential upside of 29.16% [8] - The company may also consider selling its tower assets, which are valued in the billions, as a potential catalyst for share price increases [9] Market Context - Merger enforcement actions have decreased under the Biden Administration, which may impact the regulatory landscape for United States Cellular's deals [9] - Despite a "Buy" rating from analysts, other stocks are currently viewed as better investment opportunities [10][11]

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%. ...

[Q3 2024 Earnings Overview](index=1&type=section&id=Q3%202024%20Earnings%20Overview) UScellular's Q3 2024 results show a decline in total operating and service revenues, with a net loss to shareholders primarily due to a significant licenses impairment charge [Q3 2024 Financial Highlights](index=1&type=section&id=Q3%202024%20Financial%20Highlights) UScellular experienced a year-over-year decline in total operating and service revenues in Q3 2024, reporting a net loss to shareholders driven by a significant licenses impairment charge, though net income and EPS were flat excluding this charge - **Q3 2024 Key Financial Data (Year-over-Year)** | Metric | Q3 2024 | Q3 2023 | Change | | :----------------------------------- | :------ | :------ | :----- | | Total Operating Revenues | $922M | $963M | (4)% | | Service Revenues | $747M | $762M | (2)% | | Net Income (Loss) Attributable to UScellular Shareholders | $(79)M | $23M | N/M | | Diluted Earnings (Loss) Per Share Attributable to UScellular Shareholders | $(0.92) | $0.26 | N/M | | Net Income (Loss) Attributable to UScellular Shareholders (Excluding Licenses Impairment) | $23M | $23M | 0% | | Diluted Earnings Per Share (Excluding Licenses Impairment) | $0.26 | $0.26 | 0% | | Licenses Impairment | $136M | $0 | N/M | [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) UScellular announced significant spectrum asset sales, improved wireless operating performance with reduced postpaid handset net losses and lower churn, and strong fixed wireless customer growth - Announced the sale of certain spectrum assets to Verizon for **$1 billion** in October 2024, along with additional spectrum sales to two other mobile carriers[5](index=5&type=chunk)[9](index=9&type=chunk) - Improved wireless operating performance includes reduced postpaid handset net losses, **2% growth in postpaid ARPU**, increased prepaid net additions, and improved postpaid and prepaid churn rates[5](index=5&type=chunk) - Fixed wireless customers grew **32% to 140,000**[5](index=5&type=chunk) - Future network investments will focus on mid-band spectrum deployment to enhance speed and capacity, building on significant progress in 5G coverage[6](index=6&type=chunk) [Strategic Transactions and Alternatives](index=1&type=section&id=Strategic%20Transactions%20and%20Alternatives) UScellular and TDS reached a definitive agreement to sell UScellular's wireless business and certain spectrum assets to T-Mobile, expected to close mid-2025, while also selling additional spectrum to Verizon and other carriers for $1 billion and continuing to explore monetization opportunities for remaining spectrum - A definitive agreement has been reached with T-Mobile to sell UScellular's wireless business and certain spectrum assets, expected to close mid-2025, pending regulatory approvals[7](index=7&type=chunk) - The T-Mobile transaction excludes approximately **4,400 UScellular-owned cell towers**, equity investments, and about **70% of its spectrum assets**[8](index=8&type=chunk) - In October 2024, UScellular announced the sale of certain remaining spectrum assets to Verizon for **$1 billion**, and additional spectrum to two other mobile network operators, with these transactions contingent on the completion of the T-Mobile transaction[9](index=9&type=chunk) [2024 Financial Guidance](index=2&type=section&id=2024%20Financial%20Guidance) UScellular updated its 2024 financial guidance, narrowing ranges for service revenues and capital expenditures while raising the lower and upper bounds for Adjusted OIBDA and Adjusted EBITDA, reflecting improved operational performance [Updated 2024 Estimates](index=2&type=section&id=Updated%202024%20Estimates) UScellular updated its 2024 financial guidance, narrowing the ranges for service revenues and capital expenditures, and raising the lower and upper bounds for Adjusted OIBDA and Adjusted EBITDA, indicating confidence in operational improvements - **Updated 2024 Estimates** | Metric | Prior Guidance | Current Guidance | | :-------------------------- | :---------------- | :--------------- | | Service Revenues | $2,950-$3,050M | $2,950-$3,000M | | Adjusted OIBDA (Non-GAAP) | $750-$850M | $800-$875M | | Adjusted EBITDA (Non-GAAP) | $920-$1,020M | $970-$1,045M | | Capital Expenditures | $550-$650M | $550-$600M | [Non-GAAP Reconciliations for Guidance](index=3&type=section&id=Non-GAAP%20Reconciliations%20for%20Guidance) This report provides a reconciliation of GAAP Net Income (Loss) to non-GAAP EBITDA, Adjusted EBITDA, and Adjusted OIBDA for the 2024 estimates, highlighting adjustments for interest, depreciation, strategic alternatives review costs, and licenses impairment - **2024 Forecast Non-GAAP Reconciliation Highlights** | Metric | 2024 Forecast | | :------------------------------------------------- | :--------------------- | | Net Income (Loss) (GAAP) | N/A | | Earnings (Loss) Before Income Taxes (GAAP) | $(35)-$40M | | Interest Expense | $180M | | Depreciation, Amortization and Accretion Expense | $665M | | EBITDA (Non-GAAP) | $810-$885M | | Strategic Alternatives Review Related Costs | — | | Licenses Impairment Loss | $135M | | Adjusted EBITDA (Non-GAAP) | $970-$1,045M | | Equity in Earnings of Unconsolidated Entities | $160M | | Interest and Dividend Income | $10M | | Adjusted OIBDA (Non-GAAP) | $800-$875M | [Operational Metrics](index=5&type=section&id=Operational%20Metrics) UScellular's Q3 2024 operational performance shows a decline in total postpaid connections but improved postpaid handset net losses and positive prepaid net additions [Retail Connections](index=5&type=section&id=Retail%20Connections) UScellular experienced a decrease in total postpaid connections in Q3 2024, but saw an improvement in postpaid handset net losses and positive growth in prepaid net additions - **Retail Connections (Q3 2024 vs Q3 2023)** | Metric | Q3 2024 | Q3 2023 | Change | | :------------------------- | :-------- | :-------- | :------- | | Postpaid Ending Connections | 3,999,000 | 4,159,000 | (3.8)% | | Postpaid Handset Net Additions (Losses) | (28,000) | (35,000) | Improved | | Prepaid Ending Connections | 452,000 | 462,000 | (2.2)% | | Prepaid Net Additions (Losses) | 13,000 | 0 | Increased | [ARPU and Churn Rates](index=5&type=section&id=ARPU%20and%20Churn%20Rates) In Q3 2024, postpaid ARPU increased year-over-year, while both postpaid and prepaid churn rates improved, indicating enhanced customer retention - **ARPU and Churn Rates (Q3 2024 vs Q3 2023)** | Metric | Q3 2024 | Q3 2023 | Change | | :------------------- | :------ | :------ | :----- | | Postpaid ARPU | $52.04 | $51.11 | 1.8% | | Postpaid Churn Rate | 1.25% | 1.30% | Improved | | Postpaid Handset Churn Rate | 1.07% | 1.11% | Improved | | Prepaid ARPU | $32.01 | $33.44 | (4.3)% | | Prepaid Churn Rate | 3.30% | 3.68% | Improved | [Network and Capital Expenditures](index=5&type=section&id=Network%20and%20Capital%20Expenditures) UScellular increased its capital expenditures in Q3 2024 while maintaining stable numbers for total cell sites and company-owned towers - **Network Infrastructure and Capital Expenditures (Q3 2024 vs Q3 2023)** | Metric | Q3 2024 | Q3 2023 | Change | | :-------------------------- | :------ | :------ | :----- | | Capital Expenditures (Millions USD) | $120 | $111 | 8.1% | | Total Cell Sites in Service | 7,007 | 6,973 | 0.5% | | Company-Owned Towers | 4,407 | 4,356 | 1.2% | | Collocations | 2,418 | 2,406 | 0.5% | | Tower Lease-Up Rate | 1.55 | 1.55 | 0% | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) UScellular reported a significant operating and net loss in Q3 2024, primarily due to a $136 million licenses impairment loss, with total operating revenues declining by 4% year-over-year [Consolidated Statement of Operations Highlights](index=6&type=section&id=Consolidated%20Statement%20of%20Operations%20Highlights) In Q3 2024, UScellular recorded a substantial operating and net loss, mainly driven by a $136 million licenses impairment loss, with total operating revenues decreasing by 4% year-over-year - **Q3 2024 Consolidated Statement of Operations Highlights** | Metric | Q3 2024 | Q3 2023 | Change | | :-------------------------------------------------------------------- | :------ | :------ | :----- | | Total Operating Revenues | $922M | $963M | (4)% | | Service Revenues | $747M | $762M | (2)% | | Equipment Sales | $175M | $201M | (13)% | | Total Operating Expenses | $1,012M | $906M | 12% | | Licenses Impairment Loss | $136M | $0 | N/M | | Operating Income (Loss) | $(90)M | $57M | N/M | | Net Income (Loss) Attributable to UScellular Shareholders | $(79)M | $23M | N/M | | Diluted Earnings (Loss) Per Share Attributable to UScellular Shareholders | $(0.92) | $0.26 | N/M | [Consolidated Cash Flow Highlights](index=7&type=section&id=Consolidated%20Cash%20Flow%20Highlights) For the nine months ended September 30, 2024, net cash provided by operating activities increased, and net cash used in investing activities decreased, leading to a net increase in cash, cash equivalents, and restricted cash, reversing the prior year's trend - **Cash Flow Highlights for the Nine Months Ended September 30, 2024** | Metric | 9 Months 2024 | 9 Months 2023 | Change | | :------------------------------------------ | :------ | :------ | :----- | | Net Cash Provided by Operating Activities | $761M | $719M | 5.8% | | Net Cash Used in Investing Activities | $(415)M | $(464)M | 10.6% | | Net Cash Used in Financing Activities | $(237)M | $(378)M | 37.3% | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $109M | $(123)M | N/M | | Cash, Cash Equivalents and Restricted Cash (End of Period) | $288M | $185M | 55.7% | [Consolidated Balance Sheet Highlights](index=8&type=section&id=Consolidated%20Balance%20Sheet%20Highlights) As of September 30, 2024, UScellular's total assets slightly decreased, primarily due to reduced license values, while cash and cash equivalents significantly increased and long-term debt decreased - **Consolidated Balance Sheet Highlights (September 30, 2024 vs December 31, 2023)** | Metric | September 30, 2024 | December 31, 2023 | Change | | :----------------------------------- | :----------- | :----------- | :----- | | Total Assets | $10,516M | $10,750M | (2.2)% | | Cash and Cash Equivalents | $272M | $150M | 81.3% | | Licenses | $4,576M | $4,693M | (2.5)% | | Total Current Liabilities | $909M | $901M | 0.9% | | Long-Term Debt, Net | $2,882M | $3,044M | (5.4)% | | Total Equity Attributable to UScellular Shareholders | $4,582M | $4,626M | (1.0)% | [Segment Results](index=10&type=section&id=Segment%20Results) In Q3 2024, UScellular's total operating revenues declined, resulting in an operating loss, yet Adjusted OIBDA and Adjusted EBITDA both showed positive growth, indicating improved underlying profitability [Overall Segment Performance](index=10&type=section&id=Overall%20Segment%20Performance) In Q3 2024, UScellular's total operating revenues decreased, leading to an operating loss, but Adjusted OIBDA and Adjusted EBITDA both saw positive growth, suggesting improved underlying profitability - **Q3 2024 Overall Segment Performance** | Metric | Q3 2024 | Q3 2023 | Change | | :------------------------- | :------ | :------ | :----- | | Total Operating Revenues | $922M | $963M | (4)% | | Wireless Operating Revenues | $896M | $938M | (4)% | | Tower Operating Revenues | $59M | $57M | 2% | | Operating Income (Loss) | $(90)M | $57M | N/M | | Adjusted OIBDA (Non-GAAP) | $222M | $220M | 1% | | Adjusted EBITDA (Non-GAAP) | $269M | $263M | 3% | | Capital Expenditures | $120M | $111M | 8% | [Wireless Segment Performance](index=11&type=section&id=Wireless%20Segment%20Performance) In Q3 2024, the Wireless segment's total operating revenues decreased by 4%, resulting in an operating loss, though its Adjusted OIBDA and Adjusted EBITDA still showed slight growth - **Q3 2024 Wireless Segment Performance** | Metric | Q3 2024 | Q3 2023 | Change | | :-------------------------- | :------ | :------ | :----- | | Total Operating Revenues | $896M | $938M | (4)% | | Service Revenues | $721M | $737M | (2)% | | Equipment Sales | $175M | $201M | (13)% | | Operating Income (Loss) | $(109)M | $38M | N/M | | Adjusted OIBDA (Non-GAAP) | $191M | $190M | 1% | | Adjusted EBITDA (Non-GAAP) | $191M | $190M | 1% | | Capital Expenditures | $114M | $106M | 7% | [Towers Segment Performance](index=11&type=section&id=Towers%20Segment%20Performance) In Q3 2024, the Towers segment saw a 2% increase in total revenues, maintained stable operating income, and achieved positive growth in both Adjusted OIBDA and Adjusted EBITDA, with a significant increase in capital expenditures - **Q3 2024 Towers Segment Performance** | Metric | Q3 2024 | Q3 2023 | Change | | :-------------------------- | :------ | :------ | :----- | | Total Tower Revenues | $59M | $57M | 2% | | Third-Party Revenues | $26M | $25M | 1% | | Intercompany Revenues | $33M | $32M | 3% | | Operating Income | $19M | $19M | (1)% | | Adjusted OIBDA (Non-GAAP) | $31M | $30M | 3% | | Adjusted EBITDA (Non-GAAP) | $31M | $30M | 3% | | Capital Expenditures | $6M | $5M | 33% | [Non-GAAP Financial Measures & Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section provides reconciliations for non-GAAP financial measures, including free cash flow and net income excluding licenses impairment, to offer a clearer view of UScellular's underlying financial performance [Free Cash Flow Reconciliation](index=12&type=section&id=Free%20Cash%20Flow%20Reconciliation) For the nine months ended September 30, 2024, UScellular's free cash flow significantly increased to **$331 million**, driven by higher cash flow from operating activities and reduced capital expenditures - **Free Cash Flow for the Nine Months Ended September 30, 2024** | Metric | 9 Months 2024 | 9 Months 2023 | Change | | :------------------------------------------------------- | :------ | :------ | :----- | | Net Cash Provided by Operating Activities (GAAP) | $761M | $719M | 5.8% | | Cash Paid for Property, Plant and Equipment | $(399)M | $(454)M | 12.1% | | Cash Paid for Software License Agreements | $(31)M | $(28)M | (10.7)% | | Free Cash Flow (Non-GAAP) | $331M | $237M | 39.7% | [Net Income Excluding Licenses Impairment](index=12&type=section&id=Net%20Income%20Excluding%20Licenses%20Impairment) Excluding the **$136 million** licenses impairment charge and its deferred tax benefit, UScellular's Q3 2024 net income attributable to shareholders would be **$23 million**, flat year-over-year, with diluted EPS of **$0.26** - **Q3 2024 Net Income Excluding Licenses Impairment** | Metric | Q3 2024 (GAAP) | Q3 2024 (Non-GAAP, Excluding Impairment) | Q3 2023 (GAAP) | | :------------------------------------------------------------------------------------------------------------------------------------ | :------------- | :----------------------------------- | :------------- | | Net Income (Loss) Attributable to UScellular Shareholders | $(79)M | $23M | $23M | | Licenses Impairment Loss | — | $136M | — | | Deferred Tax Benefit on Tax-Deductible Portion of Impaired Licenses | — | $(34)M | — | | Diluted Earnings (Loss) Per Share Attributable to UScellular Shareholders | $(0.92) | $0.26 | $0.26 | [Additional Corporate Information](index=4&type=section&id=Additional%20Corporate%20Information) This section provides supplementary corporate details, including stock repurchase activities, an overview of UScellular, and a safe harbor statement regarding forward-looking information [Stock Repurchase](index=4&type=section&id=Stock%20Repurchase) In Q3 2024, UScellular repurchased **474,074 shares** of common stock for a total value of **$26 million** - In Q3 2024, UScellular repurchased **474,074 shares** of common stock for **$26 million**[13](index=13&type=chunk) [About UScellular](index=4&type=section&id=About%20UScellular) United States Cellular Corporation is a wireless service provider serving **4.5 million retail connections** across **21 states**, with Telephone and Data Systems, Inc. holding approximately **83%** of its equity as of Q3 2024 - UScellular provides comprehensive wireless products and services to **4.5 million retail connections** across **21 states**[16](index=16&type=chunk) - As of September 30, 2024, Telephone and Data Systems, Inc. owned approximately **83%** of UScellular's equity[16](index=16&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) The safe harbor statement clarifies that all content in the press release, excluding historical and factual information, constitutes forward-looking statements based on current estimates and assumptions, subject to risks and uncertainties that could cause actual results to differ materially - All content in the press release, except for historical and factual information, constitutes forward-looking statements based on current estimates and assumptions, subject to risks and uncertainties that could cause actual results to differ materially from those projected[17](index=17&type=chunk) - Key factors influencing forward-looking statements include the successful completion of announced transactions (T-Mobile, Verizon), strategic decisions regarding the tower business, intense competition, spectrum acquisition capabilities, and the regulatory environment[17](index=17&type=chunk)

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 ...