U.S. Cellular(USM) - 2025 Q1 - Quarterly Results

Financial Performance - UScellular reported total operating revenues of $891 million for Q1 2025, a decrease of 6% from $950 million in Q1 2024[3]. - Service revenues for Q1 2025 were $741 million, down 2% from $754 million in the same period last year[20]. - Net income for the three months ended March 31, 2025, was $20 million, a decrease of 17% compared to $24 million in the same period of 2024[22]. - Total operating revenues decreased by 6% to $891 million in Q1 2025 from $950 million in Q1 2024, with wireless revenues down 7% to $864 million[28]. - Adjusted EBITDA for the three months ended March 31, 2025, was $254 million, down 7% from $272 million in the same period of 2024[28]. - Free cash flow for Q1 2025 was $79 million, an increase of 29% compared to $61 million in Q1 2024[32]. - Net income (GAAP) for Q1 2025 was $20 million, down from $24 million in Q1 2024, representing a decrease of 16.67%[35]. - Adjusted EBITDA (Non-GAAP) for Q1 2025 was $215 million, compared to $228 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 $196 million in Q1 2024[30]. - Operating income for the wireless segment decreased by 30% to $20 million in Q1 2025 from $29 million in Q1 2024[30]. - Operating income (GAAP) for UScellular Wireless in Q1 2025 was $20 million, down from $29 million in Q1 2024, a decrease of 31.03%[35]. - Adjusted EBITDA for UScellular Wireless was $182 million in Q1 2025, compared to $195 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 $162 million in Q4 2024[18]. - Capital expenditures decreased significantly by 60% to $53 million in Q1 2025 from $131 million in Q1 2024[28]. - Total assets as of March 31, 2025, were $10,365 million, a slight decrease from $10,449 million at the end of 2024[26]. - Total current liabilities decreased to $807 million as of March 31, 2025, from $884 million at the end of 2024[26]. - Cash and cash equivalents increased to $182 million as of March 31, 2025, compared to $144 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 $40 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 $9 million in Q1 2025 from $7 million in Q1 2024, an increase of 28.57%[35]. - Equity in earnings of unconsolidated entities was $36 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].