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 ...

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 ...

U.S. Cellular Corporation (USM) recently inked a definitive agreement with Verizon Communication, Inc. (VZ) to divest a portion of its spectrum holdings. The all-cash transaction is valued at $1 billion, subject to some potential adjustments specified in the purchase agreement, regulatory approvals and customary closing conditions. Post completion of the acquisition, Verizon will gain access to 663 million MHz POPs (MegahertzPopulation) of USM's Cellular (850 MHz) spectrum licenses, as well as 11 million MH ...

The equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms. Analyst's Disclosure: I/we have a beneficial long position in the shares of TDS.PR.V either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses ...

Core Insights - United States Cellular (USM) reported a revenue of $927 million for the quarter ended June 2024, reflecting a decrease of 3.1% year-over-year, while EPS increased to $0.20 from $0.05 in the same quarter last year, surpassing the consensus EPS estimate of $0.10 by 100% [1] Financial Performance - Revenue of $927 million compared to Zacks Consensus Estimate of $924.97 million, resulting in a surprise of +0.22% [1] - EPS of $0.20 compared to the consensus estimate of $0.10, indicating a surprise of +100.00% [1] Key Metrics - Postpaid churn rate was 1.2%, slightly above the average estimate of 1.1% [3] - Retail connections for prepaid saw a net addition of 3 million, significantly better than the estimated loss of 8.3 million [3] - Total connections stood at 4.47 million, close to the average estimate of 4.5 million [4] - Retail connections for postpaid experienced a net loss of 24 million, better than the estimated loss of 41.91 million [4] - Prepaid churn rate was 3.6%, lower than the average estimate of 4.1% [5] - Prepaid ARPU was $32.37, slightly below the average estimate of $32.42 [6] - Postpaid ARPU was $51.45, also below the average estimate of $51.87 [7] - Total retail connections for prepaid at the end of the period were 439 thousand, exceeding the average estimate of 428.56 thousand [7] - Gross additions for retail connections in postpaid were 117 million, surpassing the average estimate of 94.94 million [7] - Total retail connections for postpaid at the end of the period were 4.03 million, slightly above the average estimate of 4.01 million [8] - Operating revenues from equipment sales were $184 million, exceeding the average estimate of $179.92 million [8] - Operating revenues from service were $743 million, marginally below the average estimate of $743.47 million [9] Stock Performance - Shares of U.S. Cellular have returned -2.6% over the past month, compared to the Zacks S&P 500 composite's -0.4% change [9] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [9]

[Executive Summary & Strategic Announcements](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Announcements) UScellular reported mixed Q2 2024 results with revenue decline but significant net income growth, alongside announcing the sale of wireless operations to T-Mobile [Second Quarter 2024 Performance Highlights](index=1&type=section&id=1.1%20Second%20Quarter%202024%20Performance%20Highlights) UScellular reported a decrease in total operating revenues and service revenues for Q2 2024 compared to the prior year, but achieved significant growth in net income and diluted EPS Q2 2024 Financial Performance (YoY Comparison) | Metric | Q2 2024 | Q2 2023 | Change | | :--------------------------------- | :------ | :------ | :----- | | Total Operating Revenues | $927M | $957M | (3.1%) | | Service Revenues | $743M | $760M | (2.2%) | | Net Income Attributable to Shareholders | $17M | $5M | 240% | | Diluted Earnings Per Share | $0.20 | $0.05 | 300% | - Sequential improvement observed in postpaid gross additions and postpaid net losses, indicating positive momentum in subscriber results[3](index=3&type=chunk) - Postpaid Average Revenue Per User (ARPU) grew by **2%**, while service revenues decreased by **2%**[3](index=3&type=chunk) - Third-party tower revenues increased by **1%**[3](index=3&type=chunk) - Fixed wireless customers grew by **40%** to **134,000**[3](index=3&type=chunk) - Strong cost management across the enterprise led to increased operating income, net income, and Adjusted OIBDA[3](index=3&type=chunk) [Strategic Transactions and Future Outlook](index=1&type=section&id=1.2%20Strategic%20Transactions%20and%20Future%20Outlook) UScellular announced a definitive agreement to sell its wireless operations and select spectrum assets to T-Mobile, expected to close in mid-2025 - UScellular has entered into a definitive agreement to sell its wireless operations and select spectrum assets to T-Mobile, with an expected closing in mid-2025, subject to regulatory approvals[4](index=4&type=chunk) - UScellular will retain nearly **4,400** owned towers, its equity method investments, and approximately **70%** of its spectrum assets[4](index=4&type=chunk) - A strategic alternatives review process is ongoing to opportunistically monetize spectrum assets not included in the T-Mobile transaction[4](index=4&type=chunk) [Consolidated Financial Results](index=5&type=section&id=Consolidated%20Financial%20Results) UScellular's Q2 2024 consolidated results show decreased revenues but improved operating income and net income, with shifts in balance sheet and cash flow dynamics [Consolidated Statement of Operations](index=5&type=section&id=2.1%20Consolidated%20Statement%20of%20Operations) For the second quarter of 2024, UScellular experienced a decline in total operating revenues and service revenues, but achieved substantial growth in operating income, net income, and diluted earnings per share Consolidated Statement of Operations Highlights (Three Months Ended June 30, YoY Change) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Change | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----- | | Service Revenues | $743M | $760M | (2%) | | Equipment Sales | $184M | $197M | (6%) | | Total Operating Revenues | $927M | $957M | (3%) | | Total Operating Expenses | $891M | $923M | (3%) | | Operating Income | $36M | $34M | 6% | | Income Before Income Taxes | $32M | $24M | 31% | | Net Income Attributable to UScellular Shareholders | $17M | $5M | N/M | | Diluted Earnings Per Share | $0.20 | $0.05 | N/M | Consolidated Statement of Operations Highlights (Six Months Ended June 30, YoY Change) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----- | | Service Revenues | $1,497M | $1,527M | (2%) | | Equipment Sales | $380M | $415M | (9%) | | Total Operating Revenues | $1,877M | $1,942M | (3%) | | Total Operating Expenses | $1,789M | $1,881M | (5%) | | Operating Income | $88M | $61M | 44% | | Income Before Income Taxes | $83M | $49M | 69% | | Net Income Attributable to UScellular Shareholders | $35M | $18M | N/M | | Diluted Earnings Per Share | $0.40 | $0.20 | 95% | [Consolidated Balance Sheet](index=7&type=section&id=2.2%20Consolidated%20Balance%20Sheet) As of June 30, 2024, UScellular's total assets slightly decreased compared to December 31, 2023, primarily due to reductions in inventory and other assets, while cash and cash equivalents increased Consolidated Balance Sheet Highlights (June 30, 2024 vs. December 31, 2023) | Metric | June 30, 2024 | December 31, 2023 | | :--------------------------------- | :------------ | :---------------- | | Total Assets | $10,639M | $10,750M | | Cash and Cash Equivalents | $195M | $150M | | Inventory, net | $143M | $199M | | Licenses | $4,715M | $4,693M | | Property, Plant and Equipment, net | $2,540M | $2,576M | | Total Current Liabilities | $886M | $901M | | Long-Term Debt, net | $2,887M | $3,044M | | Total UScellular Shareholders' Equity | $4,675M | $4,626M | [Consolidated Cash Flows](index=6&type=section&id=2.3%20Consolidated%20Cash%20Flows) For the six months ended June 30, 2024, UScellular significantly increased net cash provided by operating activities, while cash used in investing activities slightly decreased Consolidated Cash Flow Highlights (Six Months Ended June 30, YoY Change) | Metric | 2024 | 2023 | Change | | :---------------------------------------------------- | :----- | :----- | :----- | | Net Cash Provided by Operating Activities | $516M | $390M | 32.3% | | Net Cash Used in Investing Activities | ($284M) | ($345M) | 17.6% | | Net Cash Used in Financing Activities | ($196M) | ($129M) | (52.0%) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $36M | ($84M) | N/M | | Cash, Cash Equivalents and Restricted Cash (End of Period) | $215M | $224M | (4.0%) | [Free Cash Flow](index=11&type=section&id=2.4%20Free%20Cash%20Flow) Free cash flow decreased for the three months ended June 30, 2024, but significantly increased for the six-month period year-over-year Free Cash Flow (Non-GAAP) (YoY Change) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Change | | :--------------------------------- | :------------------------------- | :------------------------------- | :----- | | Free Cash Flow | $165M | $182M | (9.3%) | | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change | | :--------------------------------- | :------------------------------- | :------------------------------- | :----- | | Free Cash Flow | $226M | $20M | 1030% | [Segment Performance](index=9&type=section&id=Segment%20Performance) The Wireless segment experienced revenue declines but improved profitability, while the Towers segment consistently grew revenues and operating income [Wireless Segment Results](index=9&type=section&id=3.1%20Wireless%20Segment%20Results) The Wireless segment experienced a decrease in total operating revenues and service revenues for both the three and six months ended June 30, 2024 Wireless Segment Financials (Three Months Ended June 30, YoY Change) | Metric | 2024 | 2023 | Change | | :------------------------- | :----- | :----- | :----- | | Total Operating Revenues | $902M | $932M | (3%) | | Service Revenues | $718M | $735M | (2%) | | Operating Income | $17M | $16M | 5% | | Adjusted OIBDA (Non-GAAP) | $196M | $168M | 16% | | Capital Expenditures | $160M | $140M | 13% | Wireless Segment Financials (Six Months Ended June 30, YoY Change) | Metric | 2024 | 2023 | Change | | :------------------------- | :----- | :----- | :----- | | Total Operating Revenues | $1,826M | $1,892M | (3%) | | Service Revenues | $1,446M | $1,477M | (2%) | | Operating Income | $47M | $24M | 97% | | Adjusted OIBDA (Non-GAAP) | $392M | $344M | 14% | | Capital Expenditures | $286M | $346M | (17%) | [Towers Segment Results](index=10&type=section&id=3.2%20Towers%20Segment%20Results) The Towers segment demonstrated consistent growth in total tower revenues, driven by increases in both third-party and intra-company revenues for the three and six months ended June 30, 2024 Towers Segment Financials (Three Months Ended June 30, YoY Change) | Metric | 2024 | 2023 | Change | | :------------------------- | :----- | :----- | :----- | | Total Tower Revenues | $58M | $57M | 3% | | Third-Party Revenues | $25M | $25M | 1% | | Operating Income | $19M | $18M | 7% | | Adjusted OIBDA (Non-GAAP) | $31M | $30M | 6% | | Capital Expenditures | $5M | $3M | N/M | Towers Segment Financials (Six Months Ended June 30, YoY Change) | Metric | 2024 | 2023 | Change | | :------------------------- | :----- | :----- | :----- | | Total Tower Revenues | $116M | $113M | 3% | | Third-Party Revenues | $51M | $50M | 2% | | Operating Income | $41M | $37M | 10% | | Adjusted OIBDA (Non-GAAP) | $64M | $60M | 7% | | Capital Expenditures | $9M | $5M | 89% | [Key Operating Metrics](index=4&type=section&id=Key%20Operating%20Metrics) UScellular's Q2 2024 operating metrics indicate a decrease in postpaid connections but sequential improvements, alongside growth in fixed wireless customers and improved churn rates [Retail Connections and Subscriber Trends](index=4&type=section&id=4.1%20Retail%20Connections%20and%20Subscriber%20Trends) UScellular reported a decrease in total postpaid connections but showed sequential improvement in postpaid net losses in Q2 2024 Retail Connections (Quarterly Trends) | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Postpaid Total at End of Period | 4,027,000 | 4,051,000 | 4,106,000 | 4,159,000 | 4,194,000 | | Postpaid Gross Additions | 117,000 | 106,000 | 129,000 | 128,000 | 125,000 | | Postpaid Net Additions (Losses) | (24,000) | (44,000) | (50,000) | (35,000) | (28,000) | | Prepaid Total at End of Period | 439,000 | 436,000 | 451,000 | 462,000 | 462,000 | | Prepaid Net Additions (Losses) | 3,000 | (13,000) | (11,000) | — | (8,000) | - Fixed wireless customers grew **40%** to **134,000** (as of Q2 2024)[3](index=3&type=chunk) - First quarter 2024 connections were adjusted to remove **11,000** postpaid and **2,000** prepaid subscribers due to the CDMA shutdown, which are not included in net additions (losses) for the quarter[13](index=13&type=chunk) [Average Revenue Per User (ARPU) and Churn](index=4&type=section&id=4.2%20Average%20Revenue%20Per%20User%20(ARPU)%20and%20Churn) UScellular reported an increase in postpaid ARPU year-over-year, while prepaid ARPU saw a decrease, with both postpaid and prepaid churn rates improving in Q2 2024 ARPU and Churn Rates (Quarterly Trends) | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :------------------- | :------ | :------ | :------ | :------ | :------ | | Postpaid ARPU | $51.45 | $51.96 | $51.61 | $51.11 | $50.64 | | Postpaid Churn Rate | 1.16% | 1.22% | 1.44% | 1.30% | 1.21% | | Prepaid ARPU | $32.37 | $32.25 | $32.32 | $33.44 | $33.86 | | Prepaid Churn Rate | 3.60% | 4.06% | 3.87% | 3.68% | 4.18% | - Postpaid ARPU grew **2%** year-over-year[3](index=3&type=chunk) [Financial Guidance and Non-GAAP Measures](index=1&type=section&id=Financial%20Guidance%20and%20Non-GAAP%20Measures) UScellular reaffirmed its 2024 financial guidance and provided detailed reconciliations for non-GAAP measures, excluding strategic review impacts [2024 Estimated Results (Guidance)](index=1&type=section&id=5.1%202024%20Estimated%20Results%20(Guidance)) UScellular reaffirmed its 2024 financial guidance for service revenues, Adjusted OIBDA, Adjusted EBITDA, and capital expenditures, indicating no changes from previous estimates 2024 Estimated Results (Guidance) | Metric | Previous | Current | Change | | :------------------ | :------------- | :-------- | :-------- | | Service Revenues | $2,950-$3,050M | Unchanged | Unchanged | | Adjusted OIBDA | $750-$850M | Unchanged | Unchanged | | Adjusted EBITDA | $920-$1,020M | Unchanged | Unchanged | | Capital Expenditures | $550-$650M | Unchanged | Unchanged | | Income Before Income Taxes (GAAP) | $60-$160M | N/A | N/A | - The 2024 Estimated Results do not reflect any anticipated costs, expenses, or results of the strategic alternatives review[6](index=6&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=2&type=section&id=5.2%20Non-GAAP%20Financial%20Measures%20Reconciliation) UScellular provided detailed reconciliations for its non-GAAP financial measures, including EBITDA, Adjusted EBITDA, and Adjusted OIBDA, to their corresponding GAAP measures Consolidated Non-GAAP Reconciliation (Three Months Ended June 30, 2024) | Metric | 2024 | 2023 | | :------------------------------------------ | :----- | :----- | | Net Income (GAAP) | $18M | $5M | | Income Before Income Taxes (GAAP) | $32M | $24M | | EBITDA (Non-GAAP) | $242M | $236M | | Adjusted EBITDA (Non-GAAP) | $268M | $239M | | Adjusted OIBDA (Non-GAAP) | $227M | $198M | Consolidated Non-GAAP Reconciliation (Six Months Ended June 30, 2024) | Metric | 2024 | 2023 | | :------------------------------------------ | :----- | :----- | | Net Income (GAAP) | $42M | $20M | | Income Before Income Taxes (GAAP) | $83M | $49M | | EBITDA (Non-GAAP) | $503M | $963M | | Adjusted EBITDA (Non-GAAP) | $542M | $986M | | Adjusted OIBDA (Non-GAAP) | $456M | $818M | - Adjusted EBITDA and Adjusted OIBDA are used by management as measurements of profitability, providing additional relevant information to investors by excluding significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items[6](index=6&type=chunk) [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) UScellular, a wireless provider serving 4.5 million connections, provides essential company details and a safe harbor statement regarding forward-looking information and associated risks [About UScellular](index=3&type=section&id=6.1%20About%20UScellular) United States Cellular Corporation is a Chicago-based wireless provider offering a comprehensive range of products and services, supported by a high-quality network, serving 4.5 million retail connections across 21 states - UScellular provides wireless products and services, customer support, and a high-quality network to **4.5 million** retail connections in **21** states[9](index=9&type=chunk) - The company had **4,300** full- and part-time associates as of June 30, 2024[9](index=9&type=chunk) - Telephone and Data Systems, Inc. (TDS) owned approximately **82%** of UScellular at the end of Q2 2024[9](index=9&type=chunk) [Safe Harbor Statement](index=3&type=section&id=6.2%20Safe%20Harbor%20Statement) The Safe Harbor Statement emphasizes that all forward-looking statements in the news release are subject to various risks and uncertainties, which could cause actual results to differ materially from projections - All forward-looking statements are based on current estimates, projections, and assumptions, involving risks and uncertainties that could cause actual results to differ materially[10](index=10&type=chunk) - Important factors affecting these statements include the successful completion of the T-Mobile transaction, the ability to monetize remaining spectrum assets, strategic decisions regarding the tower business, intense competition, and regulatory environment[10](index=10&type=chunk) - Investors are encouraged to review 'Risk Factors' in UScellular's Form 10-K and subsequent 10-Q filings for a more comprehensive description of risks[10](index=10&type=chunk)

2024 guidance reaffirmed CHICAGO, Aug. 2, 2024 /PRNewswire/ -- As previously announced, UScellular will hold a teleconference on August 2, 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 $927 million for the second quarter of 2024, versus $957 million for the same period one year ago. Service revenues totaled $743 million, versus $760 million for the same period ...

Key Picks T-Mobile will pay an aggregate of $4.4 billion to U.S. Cellular, including a combination of cash and up to approximately $2 billion of assumed debt. The transaction is likely to close midway next year, subject to the fulfillment of mandatory closing conditions and other regulatory approvals. Telephone and Data Systems, which boasts about 83% ownership stake in U.S. Cellular, has unanimously agreed to the deal to help unlock significant value for its wireless customers and shareholders. Shares of U ...