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U.S. Cellular(USM) - 2025 Q1 - Quarterly Results
USMU.S. Cellular(USM)2025-05-02 11:33

Financial Performance - UScellular reported total operating revenues of 891millionforQ12025,adecreaseof6891 million for Q1 2025, a decrease of 6% from 950 million in Q1 2024[3]. - Service revenues for Q1 2025 were 741million,down2741 million, down 2% from 754 million in the same period last year[20]. - Net income for the three months ended March 31, 2025, was 20million,adecreaseof1720 million, a decrease of 17% compared to 24 million in the same period of 2024[22]. - Total operating revenues decreased by 6% to 891millioninQ12025from891 million in Q1 2025 from 950 million in Q1 2024, with wireless revenues down 7% to 864million[28].−AdjustedEBITDAforthethreemonthsendedMarch31,2025,was864 million[28]. - Adjusted EBITDA for the three months ended March 31, 2025, was 254 million, down 7% from 272millioninthesameperiodof2024[28].−FreecashflowforQ12025was272 million in the same period of 2024[28]. - Free cash flow for Q1 2025 was 79 million, an increase of 29% compared to 61millioninQ12024[32].−Netincome(GAAP)forQ12025was61 million in Q1 2024[32]. - Net income (GAAP) for Q1 2025 was 20 million, down from 24millioninQ12024,representingadecreaseof16.6724 million in Q1 2024, representing a decrease of 16.67%[35]. - Adjusted EBITDA (Non-GAAP) for Q1 2025 was 215 million, compared to 228millioninQ12024,reflectingadeclineof5.70228 million in Q1 2024, reflecting a decline of 5.70%[35]. Operational Metrics - UScellular's postpaid gross additions were 105,000 in Q1 2025, while net losses improved to 39,000 compared to 14,000 in Q1 2024[18]. - The churn rate for postpaid connections was 1.21% in Q1 2025, an improvement from 1.29% in Q1 2024[18]. - UScellular's total retail connections at the end of Q1 2025 were 4.4 million, with 3.946 million postpaid connections[18]. - The company reported a 24% decline in equipment sales, totaling 150 million in Q1 2025 compared to 196millioninQ12024[30].−Operatingincomeforthewirelesssegmentdecreasedby30196 million in Q1 2024[30]. - Operating income for the wireless segment decreased by 30% to 20 million in Q1 2025 from 29millioninQ12024[30].−Operatingincome(GAAP)forUScellularWirelessinQ12025was29 million in Q1 2024[30]. - Operating income (GAAP) for UScellular Wireless in Q1 2025 was 20 million, down from 29millioninQ12024,adecreaseof31.0329 million in Q1 2024, a decrease of 31.03%[35]. - Adjusted EBITDA for UScellular Wireless was 182 million in Q1 2025, compared to 195millioninQ12024,adeclineof6.67195 million in Q1 2024, a decline of 6.67%[35]. Capital Expenditures and Assets - Capital expenditures for Q1 2025 were 53 million, significantly lower than 162millioninQ42024[18].−Capitalexpendituresdecreasedsignificantlyby60162 million in Q4 2024[18]. - Capital expenditures decreased significantly by 60% to 53 million in Q1 2025 from 131millioninQ12024[28].−TotalassetsasofMarch31,2025,were131 million in Q1 2024[28]. - Total assets as of March 31, 2025, were 10,365 million, a slight decrease from 10,449millionattheendof2024[26].−Totalcurrentliabilitiesdecreasedto10,449 million at the end of 2024[26]. - Total current liabilities decreased to 807 million as of March 31, 2025, from 884millionattheendof2024[26].−Cashandcashequivalentsincreasedto884 million at the end of 2024[26]. - Cash and cash equivalents increased to 182 million as of March 31, 2025, compared to 144millionattheendof2024[24].ShareholderReturnsandExpenses−Thecompanyrepurchased328,835commonsharesfor144 million at the end of 2024[24]. Shareholder Returns and Expenses - The company repurchased 328,835 common shares for 21 million during Q1 2025[10]. - Interest expense for UScellular was 40millioninQ12025,comparedto40 million in Q1 2025, compared to 43 million in Q1 2024, a decrease of 6.98%[35]. - Expenses related to strategic alternatives review for UScellular Wireless increased to 9millioninQ12025from9 million in Q1 2025 from 7 million in Q1 2024, an increase of 28.57%[35]. - Equity in earnings of unconsolidated entities was 36millioninQ12025,downfrom36 million in Q1 2025, down from 42 million in Q1 2024, a decrease of 14.29%[35]. Future Outlook - Due to the pending sale of wireless operations to T-Mobile, UScellular is not providing financial guidance for 2025[8].