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United States Cellular Corp, Telephone and Data Systems Inc

UScellular reports third quarter 2024 results

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 (loss) attributable to UScellular shareholders and related diluted earnings (loss) per share were $(79) million and $(0.92), respectively, for the third quarter of 2024 compared to $23 million and $0.26, respectively, in the same period one year ago.

Net income attributable to UScellular shareholders excluding a 2024 license impairment (non-GAAP) of $136 million ($102 million, net of tax) and related Diluted earnings (loss) per share attributable to UScellular shareholders excluding a 2024 license impairment (non-GAAP) were $23 million and $0.26, respectively, for both the third quarter of 2024 and 2023. The impairment loss was substantially all related to the retained high-band spectrum unit of accounting which includes the 28 GHz, 37 GHz and 39 GHz frequency bands.

Recent Highlights*

  • Announced sale of select spectrum assets for $1 billion to Verizon in October 2024, and the sale of additional spectrum to two other mobile operators
  • Improved wireless operating results 
    • Postpaid handset net losses improved
    • Postpaid ARPU grew 2%; service revenues decreased 2%
    • Prepaid net additions up
    • Both postpaid and prepaid churn improved
  • Fixed wireless customers grew 32% to 140,000

* Comparisons are 3Q'23 to 3Q'24 unless otherwise noted

"Postpaid handset results improved year-over-year due to our promotional and retention actions," said Laurent C. Therivel, UScellular President and CEO. "While overall postpaid handset net adds remained negative, I am pleased with our improving subscriber trajectory. Solid postpaid ARPU growth coupled with strong expense discipline gives us confidence to raise our 2024 Adjusted EBITDA guidance.

"Given that our network investments over the past few years have resulted in strong 5G coverage in our footprint, future network investments are expected to predominately focus on the deployment of our mid-band spectrum to enhance speed and capacity.

"Additionally, I am very pleased that we recently announced agreements with multiple mobile network operators for the sale of portions of our retained spectrum licenses in exchange for proceeds of $1 billion. These transactions are part of our objective to opportunistically monetize the spectrum not included in the proposed T-Mobile transaction."

Announced Transactions and Exploration of Strategic Alternatives for UScellular
On May 28, 2024, Telephone and Data Systems, Inc. (TDS) and UScellular announced that they have entered into a definitive agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile. The transaction is expected to close in mid-2025, subject to regulatory approvals and the satisfaction of customary closing conditions.

The T-Mobile transaction excluded UScellular's approximately 4,400 owned towers, its equity method investments, and approximately 70% of its spectrum assets.

In October, UScellular announced a sale of select spectrum assets to Verizon for a portion of the remaining spectrum for $1 billion, and the sale of additional spectrum to two other mobile network operators for an undisclosed price. Each transaction is subject to regulatory approvals and the satisfaction of customary closing conditions and contingent upon the close of the proposed T-Mobile transaction. The process to opportunistically monetize the remaining spectrum assets continues. 

2024 Estimated Results

UScellular's current estimates of full-year 2024 results are shown below. Such estimates represent management's view as of November 1, 2024 and should not be assumed to be current as of any future date. UScellular undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

2024 Estimated Results


Previous

Current

(Dollars in millions)



Service revenues

$2,950-$3,050

$2,950-$3,000

Adjusted OIBDA1, 2 (Non-GAAP)

$750-$850

$800-$875

Adjusted EBITDA1, 2 (Non-GAAP)

$920-$1,020

$970-$1,045

Capital expenditures

$550-$650

$550-$600

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) or Income (loss) before income taxes. In providing 2024 estimated results, UScellular has not completed the below reconciliation to Net income (loss) because it does not provide guidance for income taxes. Although potentially significant, UScellular believes that the impact of income taxes cannot be reasonably predicted; therefore, UScellular is unable to provide such guidance.

Actual Results


2024 Estimated
Results2


Nine Months Ended

September 30, 2024


Year Ended
December 31, 2023

(Dollars in millions)






Net income (loss) (GAAP)

N/A


($37)


$58

Add back:






Income tax expense

N/A


29


53

Income (loss) before income taxes (GAAP)

$(35)-$40


($8)


$111

Add back:






Interest expense

180


137


196

Depreciation, amortization and accretion expense

665


499


656

EBITDA (Non-GAAP)1

$810-$885


$628


$963

Add back or deduct:






Expenses related to strategic alternatives review

—


28


8

Loss on impairment of licenses

135


136


—

(Gain) loss on asset disposals, net

20


14


17

(Gain) loss on license sales and exchanges, net

5


4


(2)

Adjusted EBITDA (Non-GAAP)1

$970-$1,045


$810


$986

Deduct:






Equity in earnings of unconsolidated entities

160


123


158

Interest and dividend income

10


9


10

Adjusted OIBDA (Non-GAAP)1

$800-$875


$678


$818

1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. UScellular does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of UScellular's operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of UScellular's financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of UScellular while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for September 30, 2024, can be found on UScellular's website at investors.uscellular.com.

2

 2024 Estimated Results do not reflect any anticipated costs, expenses or results of the strategic alternatives review referenced above.

Stock Repurchase
During the third quarter of 2024, UScellular repurchased 474,074 of its Common Shares for $26 million.

Conference Call Information
UScellular will hold a conference call on November 1, 2024 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/666898854
  • Access the call by phone at (888)330-2384 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 4.5 million retail connections in 21 states. The Chicago-based company had 4,200 full- and part-time associates as of September 30, 2024. At the end of the third quarter of 2024, Telephone and Data Systems, Inc. owned approximately 83 percent 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; strategic decisions regarding the tower business; intense competition; the ability to attract people of outstanding talent throughout all levels of the organization; UScellular's smaller 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 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, as updated by any UScellular Form 10-Q filed subsequent to such Form 10-K.

For more information about UScellular, visit: www.uscellular.com

United States Cellular Corporation

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

9/30/2024


6/30/2024


3/31/2024


12/31/2023


9/30/2023

Retail Connections










Postpaid










Total at end of period1

3,999,000


4,027,000


4,051,000


4,106,000


4,159,000

Gross additions

123,000


117,000


106,000


129,000


128,000

Handsets

84,000


73,000


63,000


80,000


84,000

Connected devices

39,000


44,000


43,000


49,000


44,000

Net additions (losses)1

(28,000)


(24,000)


(44,000)


(50,000)


(35,000)

Handsets

(28,000)


(29,000)


(47,000)


(53,000)


(38,000)

Connected devices

—


5,000


3,000


3,000


3,000

ARPU2

$        52.04


$        51.45


$        51.96


$         51.61


$         51.11

ARPA3

$      131.81


$      130.41


$      132.00


$       131.63


$       130.91

Handset upgrade rate4

3.5 %


4.1 %


4.5 %


5.8 %


4.5 %

Churn rate5

1.25 %


1.16 %


1.22 %


1.44 %


1.30 %

Handsets

1.07 %


0.97 %


1.03 %


1.22 %


1.11 %

Connected devices

2.47 %


2.47 %


2.52 %


3.03 %


2.64 %

Prepaid










Total at end of period1

452,000


439,000


436,000


451,000


462,000

Gross additions

57,000


50,000


41,000


43,000


52,000

Net additions (losses)1

13,000


3,000


(13,000)


(11,000)


—

ARPU2, 6

$        32.01


$        32.37


$        32.25


$         32.32


$         33.44

Churn rate5

3.30 %


3.60 %


4.06 %


3.87 %


3.68 %

Market penetration at end of period










Consolidated operating population

32,550,000


32,550,000


32,550,000


32,350,000


32,350,000

Consolidated operating penetration7

15 %


15 %


14 %


15 %


15 %

Capital expenditures (millions)

$            120


$           165


$           131


$            148


$            111

Total cell sites in service

7,007


6,990


6,995


7,000


6,973

Owned towers

4,407


4,388


4,382


4,373


4,356

Number of colocations8

2,418


2,392


2,397


2,390


2,406

Tower tenancy rate9

1.55


1.55


1.55


1.55


1.55


1

First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. This resulted in 11,000 and 2,000 subscribers removed from the postpaid and prepaid base, respectively, that are not included in Net additions (losses) for the quarter.

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 months in the period. These revenue bases and connection populations are shown below:

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

(Unaudited)






Three Months Ended

September 30,


Nine Months Ended

September 30,


2024


2023


2024

vs. 2023


2024


2023


2024

vs. 2023

(Dollars and shares in millions, except per share amounts)












Operating revenues












Service

$      747


$      762


(2) %


$  2,245


$  2,289


(2) %

Equipment sales

175


201


(13) %


554


617


(10) %

Total operating revenues

922


963


(4) %


2,799


2,906


(4) %













Operating expenses












System operations (excluding Depreciation, amortization and
accretion reported below)

180


185


(2) %


542


557


(3) %

Cost of equipment sold

203


228


(11) %


630


708


(11) %

Selling, general and administrative

324


333


(3) %


977


1,020


(4) %

Depreciation, amortization and accretion

167


159


5 %


499


490


2 %

Loss on impairment of licenses

136


—


N/M


136


—


N/M

(Gain) loss on asset disposals, net

4


1


N/M


14


14


4 %

(Gain) loss on license sales and exchanges, net

(2)


—


N/M


4


—


N/M

Total operating expenses

1,012


906


12 %


2,802


2,789


—













Operating income (loss)

(90)


57


N/M


(3)


117


N/M













Investment and other income (expense)












Equity in earnings of unconsolidated entities

43


40


9 %


123


121


2 %

Interest and dividend income

4


3


28 %


9


8


17 %

Interest expense

(49)


(50)


2 %


(137)


(147)


6 %

Total investment and other expense

(2)


(7)


80 %


(5)


(18)


68 %













Income (loss) before income taxes

(92)


50


N/M


(8)


99


N/M

Income tax expense (benefit)

(14)


27


N/M


29


56


(50) %

Net income (loss)

(78)


23


N/M


(37)


43


N/M

Less: Net income attributable to noncontrolling interests, net of tax

1


—


(19) %


7


3


N/M

Net income (loss) attributable to UScellular shareholders

$      (79)


$        23


N/M


$      (44)


$        40


N/M













Basic weighted average shares outstanding

86


85


1 %


86


85


1 %

Basic earnings (loss) per share attributable to UScellular
shareholders

$   (0.92)


$    0.26


N/M


$   (0.51)


$    0.47


N/M













Diluted weighted average shares outstanding

86


86


(1) %


86


86


(1) %

Diluted earnings (loss) per share attributable to UScellular
shareholders

$   (0.92)


$    0.26


N/M


$   (0.51)


$    0.47


N/M

N/M - Percentage change not meaningful


 

United States Cellular Corporation

Consolidated Statement of Cash Flows

(Unaudited)


Nine Months Ended

September 30,


2024


2023

(Dollars in millions)




Cash flows from operating activities




Net income (loss)

$                    (37)


$                     43

Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating
activities




Depreciation, amortization and accretion

499


490

Bad debts expense

65


72

Stock-based compensation expense

37


14

Deferred income taxes, net

(35)


41

Equity in earnings of unconsolidated entities

(123)


(121)

Distributions from unconsolidated entities

106


97

Loss on impairment of licenses

136


—

(Gain) loss on asset disposals, net

14


14

(Gain) loss on license sales and exchanges, net

4


—

Other operating activities

3


4

Changes in assets and liabilities from operations




Accounts receivable

30


30

Equipment installment plans receivable

12


20

Inventory

38


86

Accounts payable

12


(39)

Customer deposits and deferred revenues

(4)


(16)

Accrued taxes

46


12

Accrued interest

8


7

Other assets and liabilities

(50)


(35)

Net cash provided by operating activities

761


719





Cash flows from investing activities




Cash paid for additions to property, plant and equipment

(399)


(454)

Cash paid for licenses

(17)


(24)

Other investing activities

1


14

Net cash used in investing activities

(415)


(464)





Cash flows from financing activities




Issuance of long-term debt

40


115

Repayment of long-term debt

(203)


(395)

Repayment of short-term debt

—


(60)

Tax payments for stock-based compensation awards

(11)


(6)

Repurchase of Common Shares

(26)


—

Distributions to noncontrolling interests

(4)


(2)

Cash paid for software license agreements

(31)


(28)

Other financing activities

(2)


(2)

Net cash used in financing activities

(237)


(378)





Net increase (decrease) in cash, cash equivalents and restricted cash

109


(123)





Cash, cash equivalents and restricted cash




Beginning of period

179


308

End of period

$                   288


$                   185

 

United States Cellular Corporation

Consolidated Balance Sheet Highlights

(Unaudited)


ASSETS






September 30, 2024


December 31, 2023

(Dollars in millions)




Current assets




Cash and cash equivalents

$                                272


$                                150

Accounts receivable, net

918


957

Inventory, net

161


199

Prepaid expenses

55


57

Income taxes receivable

—


1

Other current assets

21


36

Total current assets

1,427


1,400





Assets held for sale

—


15





Licenses

4,576


4,693





Investments in unconsolidated entities

478


461





Property, plant and equipment, net

2,504


2,576





Operating lease right-of-use assets

912


915





Other assets and deferred charges

619


690





Total assets

$                          10,516


$                          10,750

 

United States Cellular Corporation

Consolidated Balance Sheet Highlights

(Unaudited)


LIABILITIES AND EQUITY






September 30, 2024


December 31, 2023

(Dollars in millions, except per share amounts)




Current liabilities




Current portion of long-term debt

$                                  20


$                                  20

Accounts payable

272


248

Customer deposits and deferred revenues

225


229

Accrued taxes

63


32

Accrued compensation

66


83

Short-term operating lease liabilities

139


135

Other current liabilities

124


154

Total current liabilities

909


901





Deferred liabilities and credits




Deferred income tax liability, net

719


755

Long-term operating lease liabilities

813


831

Other deferred liabilities and credits

579


565





Long-term debt, net

2,882


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

1,764


1,726

Treasury shares

(83)


(80)

Retained earnings

2,813


2,892

Total UScellular shareholders' equity

4,582


4,626





Noncontrolling interests

16


16





Total equity

4,598


4,642





Total liabilities and equity

$                          10,516


$                          10,750

 

United States Cellular Corporation

Segment Results

(Unaudited)



Three Months Ended

September 30,


Nine Months Ended
September 30,

UScellular

2024


2023


2024
vs. 2023


2024


2023


2024

vs. 2023

(Dollars in millions)












Operating Revenues












Wireless

$      896


$      938


(4) %


$  2,722


$  2,831


(4) %

Towers

59


57


2 %


175


170


3 %

Intra-company eliminations

(33)


(32)


(3) %


(98)


(95)


(3) %

Total operating revenues

922


963


(4) %


2,799


2,906


(4) %













Operating expenses












Wireless

1,005


900


12 %


2,784


2,770


1 %

Towers

40


38


4 %


116


114


1 %

Intra-company eliminations

(33)


(32)


(3) %


(98)


(95)


(3) %

Total operating expenses

1,012


906


12 %


2,802


2,789


—













Operating income (loss)

$      (90)


$        57


N/M


$        (3)


$      117


N/M













Adjusted OIBDA (Non-GAAP)

$      222


$      220


1 %


$      678


$      624


9 %

Adjusted EBITDA (Non-GAAP)

$      269


$      263


3 %


$      810


$      753


8 %

Capital expenditures

$      120


$      111


8 %


$      415


$      462


(10) %

N/M - Percentage change not meaningful

 

United States Cellular Corporation

Segment Results

(Unaudited)



Three Months Ended

September 30,


Nine Months Ended
September 30,

UScellular Wireless

2024


2023


2024
vs. 2023


2024


2023


2024

vs. 2023

(Dollars in millions)












Retail service

$      669


$      687


(3) %


$  2,014


$  2,065


(2) %

Other

52


50


5 %


154


149


4 %

Service revenues

721


737


(2) %


2,168


2,214


(2) %

Equipment sales

175


201


(13) %


554


617


(10) %

Total operating revenues

896


938


(4) %


2,722


2,831


(4) %













System operations (excluding Depreciation, amortization and accretion
reported below)

193


199


(3) %


582


597


(2) %

Cost of equipment sold

203


228


(11) %


630


708


(11) %

Selling, general and administrative

316


324


(3) %


953


995


(4) %

Depreciation, amortization and accretion

155


148


5 %


466


456


2 %

Loss on impairment of licenses

136


—


N/M


136


—


N/M

(Gain) loss on asset disposals, net

4


1


N/M


13


14


(1) %

(Gain) loss on license sales and exchanges, net

(2)


—


N/M


4


—


N/M

Total operating expenses

1,005


900


12 %


2,784


2,770


1 %













Operating income (loss)

$    (109)


$        38


N/M


$      (62)


$        61


N/M













Adjusted OIBDA (Non-GAAP)

$      191


$      190


1 %


$      583


$      534


9 %

Adjusted EBITDA (Non-GAAP)

$      191


$      190


1 %


$      583


$      534


9 %

Capital expenditures

$      114


$      106


7 %


$      400


$      452


(12) %

 

Three Months Ended

September 30,


Nine Months Ended
September 30,

UScellular Towers

2024


2023


2024
vs. 2023


2024


2023


2024

vs. 2023

(Dollars in millions)












Third-party revenues

$        26


$        25


1 %


$        77


$        75


2 %

Intra-company revenues

33


32


3 %


98


95


3 %

Total tower revenues

59


57


2 %


175


170


3 %













System operations (excluding Depreciation, amortization and accretion
reported below)

20


18


10 %


58


55


4 %

Selling, general and administrative

8


9


(14) %


24


25


(7) %

Depreciation, amortization and accretion

12


11


7 %


33


34


(1) %

(Gain) loss on asset disposals, net

—


—


N/M


1


—


N/M

Total operating expenses

40


38


4 %


116


114


1 %













Operating income

$        19


$        19


(1) %


$        59


$        56


7 %













Adjusted OIBDA (Non-GAAP)

$        31


$        30


3 %


$        95


$        90


6 %

Adjusted EBITDA (Non-GAAP)

$        31


$        30


3 %


$        95


$        90


6 %

Capital expenditures

$          6


$          5


33 %


$        15


$        10


61 %

N/M - Percentage change not meaningful


 

United States Cellular Corporation

Financial Measures

(Unaudited)


Free Cash Flow


Three Months Ended

September 30,


Nine Months Ended

September 30,

UScellular

2024


2023


2024


2023

(Dollars in millions)








Cash flows from operating activities (GAAP)

$                245


$                329


$                761


$                719

Cash paid for additions to property, plant and equipment

(129)


(103)


(399)


(454)

Cash paid for software license agreements

(11)


(9)


(31)


(28)

Free cash flow (Non-GAAP)1

$                105


$                217


$                331


$                237

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 current period Loss on impairment of licenses at UScellular, including tax impacts. UScellular believes this measure may be useful to investors and other users of its financial information to assist in comparing the current period financial results with periods that were not impacted by such a charge.

Three Months Ended
September 30,


Nine Months Ended
September 30,


2024


2023


2024


2023

(Dollars in millions)








Net income (loss) attributable to UScellular shareholders
(GAAP)

$                  (79)


$                   23


$                  (44)


$                   40

Adjustments:








Loss on impairment of licenses

136


—


136


—

Deferred tax benefit on the tax-amortizable portion of the
impaired licenses

(34)


—


(34)


—

Subtotal of Non-GAAP adjustments

102


—


102


—

Net income attributable to UScellular shareholders excluding
licenses impairment charge (Non-GAAP)

$                   23


$                   23


$                   58


$                   40









Diluted weighted average shares outstanding used for diluted
earnings (loss) per share attributable to UScellular shareholders

86


86


86


86

Diluted weighted average shares outstanding used for diluted
earnings (loss) per share attributable to UScellular shareholders
excluding licenses impairment charge

88


86


88


86









Diluted earnings (loss) per share attributable to UScellular
shareholders (GAAP)

$              (0.92)


$                0.26


$              (0.51)


$                0.47

Adjustments:








Loss on impairment of licenses

1.56


—


1.55


—

Deferred tax benefit on the tax-amortizable portion of the
impaired licenses

(0.38)


—


(0.38)


—

Diluted earnings (loss) per share attributable to UScellular
shareholders excluding licenses impairment charge (Non-GAAP)

$                0.26


$                0.26


$                0.66


$                0.47

 

Cision View original content:https://www.prnewswire.com/news-releases/uscellular-reports-third-quarter-2024-results-302293717.html

SOURCE United States Cellular Corporation