As previously announced, UScellular will hold a teleconference on February 21, 2025 at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.uscellular.com.
CHICAGO, Feb. 21, 2025 /PRNewswire/ -- United States Cellular Corporation (NYSE: USM) reported total operating revenues of $970 million for the fourth quarter of 2024, versus $1,000 million for the same period one year ago. Net income attributable to UScellular shareholders and related diluted earnings per share were $5 million and $0.05, respectively, for the fourth quarter of 2024 compared to $14 million and $0.16, respectively, in the same period one year ago.
UScellular reported total operating revenues of $3,770 million and $3,906 million for the years ended 2024 and 2023, respectively. Net income (loss) attributable to UScellular shareholders and related diluted earnings (loss) per share were $(39) million and $(0.46), respectively, for the year ended 2024 compared to $54 million and $0.63, respectively, for the year ended 2023.
Net income attributable to UScellular shareholders excluding a third quarter 2024 license impairment (non-GAAP) of $136 million ($102 million, net of tax) and related diluted earnings per share excluding a third quarter 2024 license impairment (non-GAAP) were $63 million and $0.71, respectively, for the year ended 2024 compared to $54 million and $0.63, respectively, for the year ended 2023. Substantially all of the impairment loss was related to the retained high-band spectrum unit of accounting which includes the 28 GHz, 37 GHz and 39 GHz frequency bands.
Full-year 2024 Highlights*
- Announced multiple transactions related to the strategic alternatives review
- Transaction with T-Mobile and four spectrum transactions with various mobile network operators
- Improved wireless operating results
- Postpaid and prepaid net losses improved
- Postpaid and prepaid churn improved
- Fixed wireless customers grew 27%
- Cash flows from operating activities and free cash flow up year over year
- Ongoing 5G mid-band network deployment - providing additional capacity and faster speeds for our customers
*Comparisons are Year Ended December 31, 2024 to Year Ended December 31, 2023
"In 2024, UScellular made significant progress in enhancing shareholder value, while remaining steadfast in its mission of connecting people to what matters most," said Laurent Therivel, UScellular President and CEO. "We also maintained strong financial discipline resulting in solid growth in profitability and free cash flow.
"While subscriber results remained negative, we saw meaningful improvement in postpaid and prepaid additions in the third and fourth quarters of 2024. We intend to build on this momentum and will continue to invest in our customers and our network while working towards closing the transactions that we have previously announced."
Announced Transactions
On May 24, 2024, Telephone and Data Systems, Inc. (TDS) and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile). The transaction is expected to close in mid-2025, subject to regulatory approval and the satisfaction of customary closing conditions.
On October 17, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, UScellular also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses.
On November 6, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close.
Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance.
Stock Repurchase
During 2024, UScellular repurchased 939,999 of its Common Shares for $55 million.
Conference Call Information
UScellular will hold a conference call on February 21, 2025 at 9:00 a.m. Central Time.
- Access the live call on the Events & Presentations page of investors.uscellular.com or at https://events.q4inc.com/attendee/548841993
- Access the call by phone at (888) 330-2384 (US/ Canada), conference ID: 1328528
Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.uscellular.com. The call will be archived on the Events & Presentations page of investors.uscellular.com.
About UScellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.4 million retail connections in 21 states. The Chicago -based company had 4,100 full- and part-time associates as of December 31, 2024. At the end of the fourth quarter of 2024, TDS owned approximately 83% of UScellular. For more information about UScellular, visit uscellular.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed or whether UScellular will be able to find buyers at mutually agreeable prices for its remaining spectrum assets; whether any such strategic alternative will result in additional value for UScellular and its shareholders and whether the process will have an adverse impact on UScellular's business; if the announced transactions are not successfully completed there may be substantial changes in which the wireless business is conducted; if the announced transactions are successfully completed, substantial costs will be triggered and changes required in the manner in which UScellular's remaining business is conducted; strategic decisions regarding the tower business; intense competition; the ability to attract people of outstanding talent throughout all levels of the organization; UScellular's lack of scale relative to larger competitors; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms and changes in roaming practices; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of UScellular's businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which UScellular does business; uncertainties in UScellular's future cash flows and liquidity and access to the capital markets; the ability to make payments on UScellular indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; potential conflicts of interests between TDS and UScellular; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and the impact, duration and severity of public health emergencies. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of UScellular's Form 10-K.
United States Cellular Corporation | |||||||||
As of or for the Quarter Ended | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||
Retail Connections | |||||||||
Postpaid | |||||||||
Total at end of period1 | 3,985,000 | 3,999,000 | 4,027,000 | 4,051,000 | 4,106,000 | ||||
Gross additions | 140,000 | 123,000 | 117,000 | 106,000 | 129,000 | ||||
Handsets | 93,000 | 84,000 | 73,000 | 63,000 | 80,000 | ||||
Connected devices | 47,000 | 39,000 | 44,000 | 43,000 | 49,000 | ||||
Net additions (losses)1 | (14,000) | (28,000) | (24,000) | (44,000) | (50,000) | ||||
Handsets | (19,000) | (28,000) | (29,000) | (47,000) | (53,000) | ||||
Connected devices | 5,000 | - | 5,000 | 3,000 | 3,000 | ||||
ARPU2 | $ 51.73 | $ 52.04 | $ 51.45 | $ 51.96 | $ 51.61 | ||||
ARPA3 | $ 131.10 | $ 131.81 | $ 130.41 | $ 132.00 | $ 131.63 | ||||
Handset upgrade rate4 | 4.8 % | 3.5 % | 4.1 % | 4.5 % | 5.8 % | ||||
Churn rate5 | 1.29 % | 1.25 % | 1.16 % | 1.22 % | 1.44 % | ||||
Handsets | 1.08 % | 1.07 % | 0.97 % | 1.03 % | 1.22 % | ||||
Connected devices | 2.67 % | 2.47 % | 2.47 % | 2.52 % | 3.03 % | ||||
Prepaid | |||||||||
Total at end of period1 | 448,000 | 452,000 | 439,000 | 436,000 | 451,000 | ||||
Gross additions | 46,000 | 57,000 | 50,000 | 41,000 | 43,000 | ||||
Net additions (losses)1 | (4,000) | 13,000 | 3,000 | (13,000) | (11,000) | ||||
ARPU2, 6 | $ 30.59 | $ 32.01 | $ 32.37 | $ 32.25 | $ 32.32 | ||||
Churn rate5 | 3.70 % | 3.30 % | 3.60 % | 4.06 % | 3.87 % | ||||
Market penetration at end of period | |||||||||
Consolidated operating population | 32,550,000 | 32,550,000 | 32,550,000 | 32,550,000 | 32,350,000 | ||||
Consolidated operating penetration7 | 15 % | 15 % | 15 % | 14 % | 15 % | ||||
Capital expenditures (millions) | $ 162 | $ 120 | $ 165 | $ 131 | $ 148 | ||||
Total cell sites in service | 7,010 | 7,007 | 6,990 | 6,995 | 7,000 | ||||
Owned towers | 4,409 | 4,407 | 4,388 | 4,382 | 4,373 | ||||
Number of colocations 8 | 2,444 | 2,418 | 2,392 | 2,397 | 2,390 | ||||
Tower tenancy rate 9 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | ||||
Due to rounding, the sum of quarterly results may not equal the total for the year. | |
1 | First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. |
2 | Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of
|
3 | Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period. |
4 | Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections. |
5 | Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period. |
6 | Fourth quarter 2023 Prepaid ARPU excludes a $6 million reduction of prepaid revenue related to an adjustment to correct a prior period error recorded in the fourth quarter of 2023. |
7 | Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets. |
8 | Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower. |
9 | Average number of tenants that lease space on company-owned towers, measured on a per-tower basis. |
United States Cellular Corporation | |||||||||||
Consolidated Statement of Operations Highlights | |||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2024 | 2023 | 2024 vs. | 2024 | 2023 | 2024 vs. | ||||||
(Dollars and shares in millions, except per share amounts) | |||||||||||
Operating revenues | |||||||||||
Service | $ 742 | $ 755 | (2) % | $ 2,987 | $ 3,044 | (2) % | |||||
Equipment sales | 228 | 245 | (7) % | 783 | 862 | (9) % | |||||
Total operating revenues | 970 | 1,000 | (3) % | 3,770 | 3,906 | (3) % | |||||
Operating expenses | |||||||||||
System operations (excluding Depreciation, amortization and | 182 | 183 | (1) % | 724 | 740 | (2) % | |||||
Cost of equipment sold | 276 | 280 | (1) % | 906 | 988 | (8) % | |||||
Selling, general and administrative | 353 | 349 | 1 % | 1,330 | 1,368 | (3) % | |||||
Depreciation, amortization and accretion | 165 | 166 | - | 665 | 656 | 1 % | |||||
Loss on impairment of licenses | - | - | - | 136 | - | N/M | |||||
(Gain) loss on asset disposals, net | 4 | 3 | 3 % | 18 | 17 | 3 % | |||||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 59 % | 3 | (2) | N/M | |||||
Total operating expenses | 979 | 979 | - | 3,782 | 3,767 | - | |||||
Operating income (loss) | (9) | 21 | N/M | (12) | 139 | N/M | |||||
Investment and other income (expense) | |||||||||||
Equity in earnings of unconsolidated entities | 38 | 37 | 3 % | 161 | 158 | 2 % | |||||
Interest and dividend income | 3 | 2 | 29 % | 12 | 10 | 19 % | |||||
Interest expense | (46) | (49) | 8 % | (183) | (196) | 7 % | |||||
Total investment and other income (expense) | (5) | (10) | 53 % | (10) | (28) | 63 % | |||||
Income (loss) before income taxes | (14) | 11 | N/M | (22) | 111 | N/M | |||||
Income tax expense (benefit) | (19) | (4) | N/M | 10 | 53 | (82) % | |||||
Net income (loss) | 5 | 15 | (66) % | (32) | 58 | N/M | |||||
Less: Net income attributable to noncontrolling interests, net of tax | - | 1 | 86 % | 7 | 4 | N/M | |||||
Net income (loss) attributable to UScellular shareholders | $ 5 | $ 14 | (68) % | $ (39) | $ 54 | N/M | |||||
Basic weighted average shares outstanding | 85 | 85 | - | 86 | 85 | 1 % | |||||
Basic earnings (loss) per share attributable to UScellular | $ 0.05 | $ 0.17 | (68) % | $ (0.46) | $ 0.64 | N/M | |||||
Diluted weighted average shares outstanding | 88 | 88 | 1 % | 86 | 87 | (1) % | |||||
Diluted earnings (loss) per share attributable to UScellular | $ 0.05 | $ 0.16 | (69) % | $ (0.46) | $ 0.63 | N/M | |||||
N/M - Percentage change not meaningful |
United States Cellular Corporation | |||
Consolidated Statement of Cash Flows | |||
(Unaudited) | |||
Year Ended December 31, | 2024 | 2023 | |
(Dollars in millions) | |||
Cash flows from operating activities | |||
Net income (loss) | $ (32) | $ 58 | |
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating | |||
Depreciation, amortization and accretion | 665 | 656 | |
Bad debts expense | 97 | 104 | |
Stock-based compensation expense | 55 | 23 | |
Deferred income taxes, net | (27) | 47 | |
Equity in earnings of unconsolidated entities | (161) | (158) | |
Distributions from unconsolidated entities | 169 | 150 | |
Loss on impairment of licenses | 136 | - | |
(Gain) loss on asset disposals, net | 18 | 17 | |
(Gain) loss on license sales and exchanges, net | 3 | (2) | |
Other operating activities | 5 | 6 | |
Changes in assets and liabilities from operations | |||
Accounts receivable | (11) | 17 | |
Equipment installment plans receivable | (37) | (20) | |
Inventory | 21 | 62 | |
Accounts payable | (19) | (85) | |
Customer deposits and deferred revenues | 9 | (9) | |
Accrued taxes | (4) | - | |
Other assets and liabilities | (4) | - | |
Net cash provided by operating activities | 883 | 866 | |
Cash flows from investing activities | |||
Cash paid for additions to property, plant and equipment | (537) | (608) | |
Cash paid for licenses | (20) | (130) | |
Other investing activities | 1 | 17 | |
Net cash used in investing activities | (556) | (721) | |
Cash flows from financing activities | |||
Issuance of long-term debt | 40 | 315 | |
Repayment of long-term debt | (248) | (453) | |
Repayment of short-term debt | - | (60) | |
Common Shares reissued for stock-based compensation awards, net of tax payments | (11) | (6) | |
Repurchase of Common Shares | (54) | - | |
Payment of debt issuance costs | - | (1) | |
Distributions to noncontrolling interests | (5) | (3) | |
Cash paid for software license agreements | (66) | (66) | |
Other financing activities | (3) | - | |
Net cash used in financing activities | (347) | (274) | |
Net decrease in cash, cash equivalents and restricted cash | (20) | (129) | |
Cash, cash equivalents and restricted cash | |||
Beginning of period | 179 | 308 | |
End of period | $ 159 | $ 179 | |
United States Cellular Corporation | |||
Consolidated Balance Sheet Highlights | |||
(Unaudited) | |||
ASSETS | |||
December 31, | 2024 | 2023 | |
(Dollars in millions) | |||
Current assets | |||
Cash and cash equivalents | $ 144 | $ 150 | |
Accounts receivable, net | 955 | 957 | |
Inventory, net | 179 | 199 | |
Prepaid expenses | 46 | 57 | |
Income taxes receivable | - | 1 | |
Other current assets | 21 | 36 | |
Total current assets | 1,345 | 1,400 | |
Assets held for sale | - | 15 | |
Licenses | 4,579 | 4,693 | |
Investments in unconsolidated entities | 454 | 461 | |
Property, plant and equipment, net | 2,502 | 2,576 | |
Operating lease right-of-use assets | 926 | 915 | |
Other assets and deferred charges | 643 | 690 | |
Total assets | $ 10,449 | $ 10,750 | |
United States Cellular Corporation | |||
Consolidated Balance Sheet Highlights | |||
(Unaudited) | |||
LIABILITIES AND EQUITY | |||
December 31, | 2024 | 2023 | |
(Dollars in millions, except per share amounts) | |||
Current liabilities | |||
Current portion of long-term debt | $ 22 | $ 20 | |
Accounts payable | 242 | 248 | |
Customer deposits and deferred revenues | 238 | 229 | |
Accrued taxes | 30 | 32 | |
Accrued compensation | 93 | 83 | |
Short-term operating lease liabilities | 141 | 135 | |
Other current liabilities | 118 | 154 | |
Total current liabilities | 884 | 901 | |
Deferred liabilities and credits | |||
Deferred income tax liability, net | 728 | 755 | |
Long-term operating lease liabilities | 822 | 831 | |
Other deferred liabilities and credits | 570 | 565 | |
Long-term debt, net | 2,837 | 3,044 | |
Noncontrolling interests with redemption features | 16 | 12 | |
Equity | |||
UScellular shareholders' equity | |||
Series A Common and Common Shares, par value $1.00 per share | 88 | 88 | |
Additional paid-in capital | 1,783 | 1,726 | |
Treasury shares | (112) | (80) | |
Retained earnings | 2,818 | 2,892 | |
Total UScellular shareholders' equity | 4,577 | 4,626 | |
Noncontrolling interests | 15 | 16 | |
Total equity | 4,592 | 4,642 | |
Total liabilities and equity | $ 10,449 | $ 10,750 | |
United States Cellular Corporation | |||||||||||
Segment Results | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended December 31, | Year Ended | ||||||||||
UScellular | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 vs. 2023 | |||||
(Dollars in millions) | |||||||||||
Operating Revenues | |||||||||||
Wireless | $ 944 | $ 975 | (3) % | $ 3,667 | $ 3,805 | (4) % | |||||
Towers | 59 | 57 | 3 % | 234 | 228 | 3 % | |||||
Intra-company eliminations | (33) | (32) | (3) % | (131) | (127) | (3) % | |||||
Total operating revenues | 970 | 1,000 | (3) % | 3,770 | 3,906 | (3) % | |||||
Operating expenses | |||||||||||
Wireless | 971 | 975 | - | 3,757 | 3,743 | - | |||||
Towers | 41 | 36 | 12 % | 156 | 151 | 3 % | |||||
Intra-company eliminations | (33) | (32) | (3) % | (131) | (127) | (3) % | |||||
Total operating expenses | 979 | 979 | - | 3,782 | 3,767 | - | |||||
Operating income (loss) | $ (9) | $ 21 | N/M | $ (12) | $ 139 | N/M | |||||
Adjusted OIBDA (Non-GAAP) | $ 167 | $ 194 | (14) % | $ 845 | $ 818 | 3 % | |||||
Adjusted EBITDA (Non-GAAP) | $ 208 | $ 233 | (11) % | $ 1,018 | $ 986 | 3 % | |||||
Capital expenditures | $ 162 | $ 148 | 9 % | $ 577 | $ 611 | (6) % | |||||
N/M - Percentage change not meaningful |
United States Cellular Corporation | |||||||||||
Segment Results | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended December 31, | Year Ended | ||||||||||
UScellular Wireless | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 vs. 2023 | |||||
(Dollars in millions) | |||||||||||
Retail service | $ 661 | $ 678 | (3) % | $ 2,674 | $ 2,742 | (2) % | |||||
Other | 55 | 52 | 7 % | 210 | 201 | 5 % | |||||
Service revenues | 716 | 730 | (2) % | 2,884 | 2,943 | (2) % | |||||
Equipment sales | 228 | 245 | (7) % | 783 | 862 | (9) % | |||||
Total operating revenues | 944 | 975 | (3) % | 3,667 | 3,805 | (4) % | |||||
System operations (excluding Depreciation, amortization and accretion | 195 | 197 | (1) % | 777 | 794 | (2) % | |||||
Cost of equipment sold | 276 | 280 | (1) % | 906 | 988 | (8) % | |||||
Selling, general and administrative | 344 | 340 | 1 % | 1,298 | 1,334 | (3) % | |||||
Depreciation, amortization and accretion | 153 | 155 | - | 620 | 610 | 1 % | |||||
Loss on impairment of licenses | - | - | - | 136 | - | N/M | |||||
(Gain) loss on asset disposals, net | 4 | 5 | (37) % | 17 | 19 | (11) % | |||||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 59 % | 3 | (2) | N/M | |||||
Total operating expenses | 971 | 975 | - | 3,757 | 3,743 | - | |||||
Operating income (loss) | $ (27) | $ - | N/M | $ (90) | $ 62 | N/M | |||||
Adjusted OIBDA (Non-GAAP) | $ 137 | $ 164 | (16) % | $ 719 | $ 697 | 3 % | |||||
Adjusted EBITDA (Non-GAAP) | $ 137 | $ 164 | (16) % | $ 719 | $ 697 | 3 % | |||||
Capital expenditures | $ 154 | $ 127 | 21 % | $ 554 | $ 580 | (5) % | |||||
Three Months Ended December 31, | Year Ended | ||||||||||
UScellular Towers | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 vs. 2023 | |||||
(Dollars in millions) | |||||||||||
Third-party revenues | $ 26 | $ 25 | 4 % | $ 103 | $ 101 | 2 % | |||||
Intra-company revenues | 33 | 32 | 3 % | 131 | 127 | 3 % | |||||
Total tower revenues | 59 | 57 | 3 % | 234 | 228 | 3 % | |||||
System operations (excluding Depreciation, amortization and accretion | 20 | 18 | 11 % | 78 | 73 | 6 % | |||||
Selling, general and administrative | 9 | 9 | 2 % | 32 | 34 | (5) % | |||||
Depreciation, amortization and accretion | 12 | 11 | - | 45 | 46 | (1) % | |||||
(Gain) loss on asset disposals, net | - | (2) | N/M | 1 | (2) | N/M | |||||
Total operating expenses | 41 | 36 | 12 % | 156 | 151 | 3 % | |||||
Operating income | $ 18 | $ 21 | (11) % | $ 78 | $ 77 | 2 % | |||||
Adjusted OIBDA (Non-GAAP) | $ 30 | $ 30 | - | $ 126 | $ 121 | 4 % | |||||
Adjusted EBITDA (Non-GAAP) | $ 30 | $ 30 | - | $ 126 | $ 121 | 4 % | |||||
Capital expenditures | $ 8 | $ 21 | (62) % | $ 23 | $ 31 | (24) % | |||||
N/M - Percentage change not meaningful |
United States Cellular Corporation | |||||||
Financial Measures | |||||||
(Unaudited) | |||||||
Free Cash Flow | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
Cash flows from operating activities (GAAP) | $ 121 | $ 148 | $ 883 | $ 866 | |||
Cash paid for additions to property, plant and equipment | (139) | (155) | (537) | (608) | |||
Cash paid for software license agreements | (35) | (37) | (66) | (66) | |||
Free cash flow (Non-GAAP)1 | $ (53) | $ (44) | $ 280 | $ 192 | |||
1 | Free cash flow is a non-GAAP financial measure which UScellular believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements. |
Licenses impairment, net of tax | |
The following non-GAAP financial measure isolates the total effects on net income of the Loss on impairment of licenses, including tax impacts. UScellular believes this measure may be useful to investors and other users of its financial information to assist in comparing financial results with periods that were not impacted by impairment charges. |
Three Months Ended December 31, | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Dollars in millions) | |||||||
Net income (loss) attributable to UScellular shareholders | $ 5 | $ 14 | $ (39) | $ 54 | |||
Adjustments: | |||||||
Loss on impairment of licenses | - | - | 136 | - | |||
Deferred tax benefit on the tax-amortizable portion of the | - | - | (34) | - | |||
Subtotal of Non-GAAP adjustments | - | - | 102 | - | |||
Net income attributable to UScellular shareholders excluding | $ 5 | $ 14 | $ 63 | $ 54 | |||
Diluted weighted average shares outstanding used for diluted | 88 | 88 | 86 | 87 | |||
Diluted weighted average shares outstanding used for diluted | 88 | 88 | 88 | 87 | |||
Diluted earnings (loss) per share attributable to UScellular | $ 0.05 | $ 0.16 | $ (0.46) | $ 0.63 | |||
Adjustments: | |||||||
Loss on impairment of licenses | - | - | 1.55 | - | |||
Deferred tax benefit on the tax-amortizable portion of the | - | - | (0.38) | - | |||
Diluted earnings per share attributable to UScellular shareholders | $ 0.05 | $ 0.16 | $ 0.71 | $ 0.63 | |||
United States Cellular Corporation | |
EBITDA, Adjusted EBITDA and Adjusted OIBDA | |
(Unaudited) | |
The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) and Income (loss) before income taxes. Income and expense items below Operating income (loss) are not provided at the individual segment level for Wireless and Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income (loss) rather than Net income (loss) at the segment level. |
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
Net income (loss) (GAAP) | $ 5 | $ 15 | $ (32) | $ 58 | |||
Add back or deduct: | |||||||
Income tax expense (benefit) | (19) | (4) | 10 | 53 | |||
Income (loss) before income taxes (GAAP) | (14) | 11 | (22) | 111 | |||
Add back: | |||||||
Interest expense | 46 | 49 | 183 | 196 | |||
Depreciation, amortization and accretion | 165 | 166 | 665 | 656 | |||
EBITDA (Non-GAAP) | 197 | 226 | 826 | 963 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | 8 | 6 | 35 | 8 | |||
Loss on impairment of licenses | - | - | 136 | - | |||
(Gain) loss on asset disposals, net | 4 | 3 | 18 | 17 | |||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 3 | (2) | |||
Adjusted EBITDA (Non-GAAP) | 208 | 233 | 1,018 | 986 | |||
Deduct: | |||||||
Equity in earnings of unconsolidated entities | 38 | 37 | 161 | 158 | |||
Interest and dividend income | 3 | 2 | 12 | 10 | |||
Adjusted OIBDA (Non-GAAP) | $ 167 | $ 194 | $ 845 | $ 818 | |||
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular Wireless | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
EBITDA (Non-GAAP) | $ 126 | $ 155 | $ 530 | $ 672 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | 8 | 6 | 33 | 8 | |||
Loss on impairment of licenses | - | - | 136 | - | |||
(Gain) loss on asset disposals, net | 4 | 5 | 17 | 19 | |||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 3 | (2) | |||
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) | 137 | 164 | 719 | 697 | |||
Deduct: | |||||||
Depreciation, amortization and accretion | 153 | 155 | 620 | 610 | |||
Expenses related to strategic alternatives review | 8 | 6 | 33 | 8 | |||
Loss on impairment of licenses | - | - | 136 | - | |||
(Gain) loss on asset disposals, net | 4 | 5 | 17 | 19 | |||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 3 | (2) | |||
Operating income (loss) (GAAP) | $ (27) | $ - | $ (90) | $ 62 | |||
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular Towers | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
EBITDA (Non-GAAP) | $ 30 | $ 32 | $ 123 | $ 123 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | - | - | 2 | - | |||
(Gain) loss on asset disposals, net | - | (2) | 1 | (2) | |||
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) | 30 | 30 | 126 | 121 | |||
Deduct: | |||||||
Depreciation, amortization and accretion | 12 | 11 | 45 | 46 | |||
Expenses related to strategic alternatives review | - | - | 2 | - | |||
(Gain) loss on asset disposals, net | - | (2) | 1 | (2) | |||
Operating income (GAAP) | $ 18 | $ 21 | $ 78 | $ 77 | |||
SOURCE United States Cellular Corporation
