TELEPHONE & DATA SYSTEMS INC /DE/ - FORM 8-K - EX-99.1 - May 1, 2018

Attached files

file filename
EX-99.2 - EX-99.2 - TELEPHONE & DATA SYSTEMS INC /DE/tdsexhibit992.htm
8-K - 8-K - TELEPHONE & DATA SYSTEMS INC /DE/tds8k.htm

 


Exhibit 99.1   NEWS RELEASE                                                                                    

 

As previously announced, TDS will hold a teleconference May 1, 2018, at 9:30 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.   

 FOR IMMEDIATE RELEASE

 TDS reports first quarter 2018 results

 

CHICAGO, (May 1, 2018) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,225 million for the first quarter of 2018, versus $1,238 million for the same period one year ago. Net income available to TDS shareholders and related diluted earnings per share were $39 million and $0.34, respectively, for the first quarter of 2018, compared to $37 million and $0.33, respectively, in the same period one year ago. 

“The TDS family of companies, in total, made a strong start to the year,” said LeRoy T. Carlson, Jr., TDS President and CEO. “U.S. Cellular drove outstanding customer loyalty and increased its profitability, and successfully implemented continuous improvement initiatives throughout the business. TDS Telecom created momentum from its network investments and federal A-CAM funding to grow its broadband customers. 

“U.S. Cellular astutely managed growth in network capacity to meet rapidly growing customer data usage ensuring customers receive an unmatched wireless experience. For the fourth time in a row, U.S. Cellular was awarded ‘Highest Wireless Network Quality Performance in the North Central Region’ by the J.D. Power Wireless Network Quality Performance Study. Postpaid handset gross additions increased modestly and postpaid handset churn remained very low. U.S. Cellular’s total customer base increased year over year which, together with increased revenues from device protection plans, helped to offset service plan pricing pressure.  U.S. Cellular achieved growth in total operating revenues due to increased sales of both high-priced devices and accessories. Process improvement and cost management initiatives combined with disciplined promotions resulted in improved profitability, as reflected in higher Adjusted EBITDA.

“At TDS Telecom, the FCC approved additional A-CAM funding, which will enable us to deploy faster broadband service to more customers, in our most rural markets. The success of recent wireline fiber investments continues to enable growth into 2018, driving growth in IPTV connections and customer demand for faster broadband speeds, which generated higher residential revenue per connection. Cable operations achieved strong growth in broadband connections generating substantially higher cable revenues and Adjusted EBITDA. TDS Telecom is intensely focused on increasing broadband penetration through raising network speed and capacity, and by delivering outstanding customer experiences. Additionally, it continues to seek potential cable acquisition opportunities.”

 

 

 

 



1

 

 


 


2018 Estimated Results

TDS’ current estimates of full-year 2018 results for U.S. Cellular, TDS Telecom, and TDS are shown below.  Such estimates represent management’s view as of May 1, 2018.  Such forward-looking statements should not be assumed to be current as of any future date.  TDS undertakes no duty to update such information, whether as a result of new information, future events, or otherwise.  There can be no assurance that final results will not differ materially from such estimated results. 

 

 

2018 Estimated Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Cellular

 

TDS Telecom (1)

 

TDS (1)(2)

 

 

Current (3)

Previous

 

Current (3)

Previous

 

Current (3)

Previous

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

Total operating revenues

$3,850-$4,050

Unchanged

 

$900-$950

Unchanged

 

$5,015-$5,265

Unchanged

Adjusted OIBDA (4)(5)

$625-$775

Unchanged

 

$290-$320

Unchanged

 

$925-$1,105

Unchanged

Adjusted EBITDA (4)

$765-$915

Unchanged

 

$300-$330

Unchanged

 

$1,075-$1,255

Unchanged

Capital expenditures

$500-$550

Unchanged

 

 

$270

Unchanged

 

$795-$845

Unchanged

 

 

 

The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2018 estimated results, actual results for the three months ended March 31, 2018, and actual results for the year ended December 31, 2017. In providing 2018 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes.  Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.

 

 

 

 

2018 Estimated Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Cellular (3)

 

 

TDS Telecom (1)(3)

 

 

TDS (1)(2)(3)

(Dollars in millions)

 

 

 

 

 

 

 

 

Net income (GAAP)

 

N/A

 

 

N/A

 

 

N/A

Add back:

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

N/A

 

 

N/A

 

 

N/A

Income before income taxes (GAAP)

$

10-160 

 

$

80-110 

 

$

5-185 

Add back:

 

 

 

 

 

 

 

 

 

Interest expense

 

110 

 

 

– 

 

 

170 

 

Depreciation, amortization and accretion expense

 

635 

 

 

220 

 

 

890 

EBITDA (Non-GAAP) (4)

$

755-905 

 

$

300-330 

 

$

1,065-1,245 

Add back or deduct:

 

 

 

 

 

 

 

 

 

(Gain) loss on asset disposals, net

 

20 

 

 

– 

 

 

20 

 

(Gain) loss on license sales and exchanges, net

 

(10)

 

 

– 

 

 

(10)

Adjusted EBITDA (Non-GAAP) (4)

$

765-915 

 

$

300-330 

 

$

1,075-1,255 

Deduct:

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

130 

 

 

– 

 

 

130 

 

Interest and dividend income

 

10 

 

 

5 

 

 

15 

 

Other, net (6)

 

– 

 

 

5 

 

 

5 

Adjusted OIBDA (Non-GAAP) (4)(5)

$

625-775 

 

$

290-320 

 

$

925-1,105 

 

 

 

 



2

 

 


 


 

 

 

Actual Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2018 (3)

 

Year ended December 31, 2017

 

 

 

U.S. Cellular

 

TDS

Telecom (1)

 

TDS (1)(2)

 

U.S. Cellular

TDS

Telecom (1)

TDS (1)(2)

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

55 

 

$

21 

 

$

57 

 

$

15 

 

$

138 

 

$

157 

Add back or deduct:

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

22 

 

 

6 

 

 

24 

 

 

(287)

 

 

(13)

 

 

(279)

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(GAAP)

$

77 

 

$

27 

 

$

81 

 

$

(272)

 

$

125 

 

$

(122)

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

29 

 

 

– 

 

 

43 

 

 

113 

 

 

– 

 

 

170 

 

Depreciation, amortization and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

accretion expense

 

159 

 

 

54 

 

 

221 

 

 

615 

 

 

195 

 

 

844 

EBITDA (Non-GAAP) (4)

$

265 

 

$

81 

 

$

345 

 

$

456 

 

$

319 

 

$

892 

Add back or deduct:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on impairment of goodwill

 

– 

 

 

– 

 

 

– 

 

 

370 

 

 

– 

 

 

262 

 

(Gain) loss on asset disposals, net

 

1 

 

 

– 

 

 

2 

 

 

17 

 

 

3 

 

 

21 

 

(Gain) loss on sale of business and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other exit costs, net

 

– 

 

 

– 

 

 

– 

 

 

(1)

 

 

– 

 

 

(1)

 

(Gain) loss on license sales and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

exchanges, net

 

(7)

 

 

– 

 

 

(7)

 

 

(22)

 

 

– 

 

 

(22)

Adjusted EBITDA (Non-GAAP) (4)

$

259 

 

$

81 

 

$

340 

 

$

820 

 

$

323 

 

$

1,152 

Deduct:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

entities

 

38 

 

 

– 

 

 

38 

 

 

137 

 

 

– 

 

 

137 

 

Interest and dividend income

 

4 

 

 

1 

 

 

5 

 

 

8 

 

 

5 

 

 

15 

 

Other, net (6)

 

(1)

 

 

1 

 

 

1 

 

 

– 

 

 

3 

 

 

4 

Adjusted OIBDA (Non-GAAP) (4)(5)

$

218 

 

$

80 

 

$

296 

 

$

675 

 

$

314 

 

$

996 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: Totals may not foot due to rounding differences.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

TDS has re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, has changed its reportable segments.  Effective January 1, 2018, HMS is no longer reported under TDS Telecom.  Prior periods have been recast to conform to the revised presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

The TDS column includes U.S. Cellular, TDS Telecom and also the impacts of consolidating eliminations, corporate operations and non-reportable segments (including HMS as indicated in Note (1) above), all of which are not presented above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

As of January 1, 2018, TDS adopted the new revenue recognition standard, ASC 606, using a modified retrospective approach.  Under this method, the new accounting standard is applied only to the most recent period presented.  As a result, 2018 amounts include the impacts of ASC 606, but 2017 amounts remain as previously reported, except as specifically stated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4)

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.  TDS does not intend to imply that any such items set forth in the reconciliation above are non-recurring, 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 TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS’ 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, and gains and losses, 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 (loss) before income taxes.

 

 

 

 

(5)

A reconciliation of Adjusted OIBDA (Non-GAAP) to Operating income (GAAP) for March 31, 2018 actual results can be found on TDS' website at investors.tdsinc.com.

 

 

 

(6)

ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively.  All prior period numbers have been recast to conform to this standard.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



3

 

 


 


Conference Call Information

TDS will hold a conference call on May 1, 2018 at 9:30 a.m. Central Time.

 

  • Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://www.webcaster4.com/Webcast/Page/1145/25623.
  • Access the call by phone at 877-407-8029 (US/Canada), no pass code required. 

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 

About TDS

Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; cable and wireline broadband, TV and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, U.S. Cellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,900 people as of March 31, 2018.

Visit www.tdsinc.com  for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

Contacts     

Jane W. McCahon, Senior Vice President - Corporate Relations and Corporate Secretary

312-592-5379

jane.mccahon@tdsinc.com

 

Julie D. Mathews, IRC, Director - Investor Relations

312-592-5341

julie.mathews@tdsinc.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: intense competition; the ability to execute TDS’ business strategy; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and U.S. Cellular indebtedness or comply with the terms of debt covenants; impacts of any pending acquisitions/divestitures/exchanges of properties and/or licenses,  including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transactions and the financial impacts of such transactions; the ability of the company to successfully manage and grow its markets; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings of TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; pending and future litigation; changes in income tax rates, laws, regulations or rulings; changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of wireless devices, or the mix of services and products offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by TDS to furnish this press release to the Securities and Exchange Commission, which are incorporated by reference herein.    

 

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com 

U.S. Cellular: www.uscellular.com 

TDS Telecom: www.tdstelecom.com 

OneNeck IT Solutions: www.oneneck.com

 

Disclaimer:

U.S. Cellular received the highest numerical score in the North Central region in the J.D. Power 2016 V2, 2017 V1 & V2, and 2018 V1 (tie) U.S. Wireless Network Quality Performance Studies. 2018 Volume 1 study based on 38,595 total responses from 5 providers, measuring the network quality experienced by customers with wireless carriers, surveyed July-December 2017. Your experiences may vary. Visit jdpower.com

 

 


4

 

 



 


United States Cellular Corporation

Summary Operating Data (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or for the Quarter Ended

3/31/2018 (1)

 

12/31/2017

 

9/30/2017

 

 

6/30/2017

 

3/31/2017

Retail Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total at end of period

 

4,481,000 

 

 

4,518,000 

 

 

4,513,000 

 

 

4,478,000 

 

 

4,455,000 

 

 

Gross additions

 

129,000 

 

 

177,000 

 

 

191,000 

 

 

174,000 

 

 

146,000 

 

 

 

Feature phones

 

5,000 

 

 

5,000 

 

 

7,000 

 

 

7,000 

 

 

7,000 

 

 

 

Smartphones

 

91,000 

 

 

128,000 

 

 

132,000 

 

 

116,000 

 

 

88,000 

 

 

 

Connected devices

 

33,000 

 

 

44,000 

 

 

52,000 

 

 

51,000 

 

 

51,000 

 

 

Net additions (losses)

 

(37,000)

 

 

5,000 

 

 

35,000 

 

 

23,000 

 

 

(27,000)

 

 

 

Feature phones

 

(15,000)

 

 

(15,000)

 

 

(15,000)

 

 

(15,000)

 

 

(19,000)

 

 

 

Smartphones

 

(1,000)

 

 

33,000 

 

 

44,000 

 

 

34,000 

 

 

(9,000)

 

 

 

Connected devices

 

(21,000)

 

 

(13,000)

 

 

6,000 

 

 

4,000 

 

 

1,000 

 

 

ARPU (2)

$

44.34 

 

$

44.12 

 

$

43.41 

 

$

44.60 

 

$

45.42 

 

 

ABPU (Non-GAAP)(3)

$

57.10 

 

$

56.69 

 

$

54.71 

 

$

55.19 

 

$

55.82 

 

 

ARPA (4)

$

118.22 

 

$

118.05 

 

$

116.36 

 

$

119.73 

 

$

121.88 

 

 

ABPA (Non-GAAP)(5)

$

152.26 

 

$

151.68 

 

$

146.65 

 

$

148.15 

 

$

149.78 

 

 

Churn rate (6)

 

1.23%

 

 

1.27%

 

 

1.16%

 

 

1.13%

 

 

1.29%

 

 

 

Handsets

 

0.97%

 

 

1.00%

 

 

0.96%

 

 

0.91%

 

 

1.08%

 

 

 

Connected devices

 

2.79%

 

 

2.84%

 

 

2.33%

 

 

2.35%

 

 

2.55%

 

Prepaid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total at end of period

 

525,000 

 

 

519,000 

 

 

515,000 

 

 

484,000 

 

 

480,000 

 

 

Gross additions

 

88,000 

 

 

83,000 

 

 

102,000 

 

 

73,000 

 

 

78,000 

 

 

Net additions (losses)

 

6,000 

 

 

4,000 

 

 

31,000 

 

 

3,000 

 

 

(4,000)

 

 

ARPU (2)

$

31.78 

 

$

32.42 

 

$

33.12 

 

$

33.52 

 

$

33.66 

 

 

Churn rate (6)

 

5.27%

 

 

5.09%

 

 

4.75%

 

 

4.93%

 

 

5.69%

Total connections at end of period (7)

 

5,063,000 

 

 

5,096,000 

 

 

5,089,000 

 

 

5,023,000 

 

 

4,996,000 

Market penetration at end of period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated operating population

 

31,469,000 

 

 

31,834,000 

 

 

31,834,000 

 

 

32,089,000 

 

 

32,089,000 

 

Consolidated operating penetration (8)

 

16%

 

 

16%

 

 

16%

 

 

16%

 

 

16%

Capital expenditures (millions)

$

70 

 

$

213 

 

$

112 

 

$

84 

 

$

61 

Total cell sites in service

 

6,473 

 

 

6,460 

 

 

6,436 

 

 

6,421 

 

 

6,417 

Owned towers

 

4,099 

 

 

4,080 

 

 

4,051 

 

 

4,044 

 

 

4,041 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

As of January 1, 2018, U.S. Cellular adopted the new revenue recognition standard, ASC 606, using a modified retrospective approach.  Under this method, the new accounting standard is applied only to the most recent period presented.  As a result, 2018 amounts include the impacts of ASC 606, but 2017 amounts remain as previously reported.

(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:

 

 

 

▪

Postpaid ARPU consists of total postpaid service revenues and postpaid connections.

 

 

 

▪

Prepaid ARPU consists of total prepaid service revenues and prepaid connections.

(3)

Average Billings Per User (ABPU) - non-GAAP metric is calculated by dividing total postpaid service revenues plus equipment installment plan billings by the average number of postpaid connections and by the number of months in the period.  Refer to the end of this release for a reconciliation of this metric to its most comparable GAAP metric.

(4)

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.

(5)

Average Billings Per Account (ABPA) - non-GAAP metric is calculated by dividing total postpaid service revenues plus equipment installment plan billings by the average number of postpaid accounts and by the number of months in the period.  Refer to the end of this release for a reconciliation of this metric to its most comparable GAAP metric.

(6)

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.

(7)

Includes reseller and other connections.

(8)

Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total population of consolidated operating markets as estimated by Nielsen.


5

 

 



 


 

TDS Telecom

Summary Operating Data (Unaudited)

 

As of or for the Quarter Ended

3/31/2018

 

12/31/2017

 

9/30/2017

 

6/30/2017

 

3/31/2017

TDS Telecom

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireline

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice (1)

 

286,000 

 

 

290,600 

 

 

298,200 

 

 

304,600 

 

 

308,200 

 

 

Broadband (2)

 

230,500 

 

 

228,600 

 

 

229,900 

 

 

230,200 

 

 

228,500 

 

 

Video (3)

 

50,300 

 

 

48,600 

 

 

47,200 

 

 

46,200 

 

 

45,200 

 

 

   Wireline residential connections

 

566,900 

 

 

567,700 

 

 

575,300 

 

 

581,000 

 

 

581,900 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total residential revenue per connection (4)

$

47.04 

 

$

46.21 

 

$

46.07 

 

$

46.39 

 

$

45.17 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Voice (1)

 

140,100 

 

 

143,000 

 

 

146,900 

 

 

150,500 

 

 

154,000 

 

 

Broadband (2)

 

20,600 

 

 

20,600 

 

 

20,900 

 

 

21,000 

 

 

21,200 

 

 

managedIP (5)

 

143,000 

 

 

146,500 

 

 

147,600 

 

 

149,700 

 

 

150,300 

 

 

Video (3)

 

400 

 

 

– 

 

 

– 

 

 

– 

 

 

– 

 

 

   Wireline commercial connections

 

304,000 

 

 

310,100 

 

 

315,300 

 

 

321,200 

 

 

325,500 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Wireline connections

 

870,900 

 

 

877,800 

 

 

890,700 

 

 

902,200 

 

 

907,400 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cable Connections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broadband (6)

 

156,800 

 

 

153,300 

 

 

143,800 

 

 

140,300 

 

 

137,800 

 

 

Video (7)

 

100,700 

 

 

101,800 

 

 

97,900 

 

 

97,900 

 

 

97,600 

 

 

Voice (8)

 

61,200 

 

 

60,100 

 

 

58,900 

 

 

58,700 

 

 

59,000 

 

 

managedIP (5)

 

600 

 

 

400 

 

 

400 

 

 

300 

 

 

200 

 

 

   Cable connections

 

319,300 

 

 

315,600 

 

 

301,000 

 

 

297,200 

 

 

294,500 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:  Totals may not foot due to rounding differences.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The individual circuits connecting a customer to Wireline’s central office facilities.

(2)

The number of Wireline customers provided high-capacity data circuits via various technologies, including DSL and dedicated internet circuit technologies.

(3)

The number of Wireline customers provided video services.

(4)

Total residential revenue per connection is calculated by dividing total Wireline residential revenue by the average number of Wireline residential connections and by the number of months in the period.

(5)

The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.

(6)

Billable number of lines into a building for high-speed data services.

(7)

Generally, a home or business receiving video programming counts as one video connection. In counting bulk residential or commercial connections, such as an apartment building or hotel, connections are counted based on the number of units/rooms within the building receiving service.

(8)

Billable number of lines into a building for voice services.

 

TDS Telecom

Capital Expenditures (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

3/31/2018

 

12/31/2017

 

9/30/2017

 

6/30/2017

 

3/31/2017

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireline

$

29 

 

$

55 

 

$

41 

 

$

33 

 

$

17 

Cable

 

11 

 

 

20 

 

 

14 

 

 

12 

 

 

9 

Total TDS Telecom (1)

$

40 

 

$

74 

 

$

56 

 

$

45 

 

$

27 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:  Totals may not foot due to rounding differences.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

TDS has re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, has changed its reportable segments.  Effective January 1, 2018, HMS is no longer reported under TDS Telecom.  Prior periods have been recast to conform to the revised presentation.



6

 

 


 


Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

2018 vs. 2017

 

 

 

 

 

 

 

 

 

Increase

Three Months Ended March 31,

 

2018 (1)

2017

(Decrease)

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

 

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

 

U.S. Cellular

$

942 

 

$

936 

 

 

1%

 

TDS Telecom (2)

 

231 

 

 

228 

 

 

1%

 

All Other (2)(3)

 

52 

 

 

74 

 

 

(28)%

 

 

 

 

 

1,225 

 

 

1,238 

 

 

(1)%

Operating expenses

 

 

 

 

 

 

 

 

 

U.S. Cellular

 

 

 

 

 

 

 

 

 

 

Expenses excluding depreciation, amortization and accretion

 

724 

 

 

742 

 

 

(3)%

 

 

Depreciation, amortization and accretion

 

159 

 

 

153 

 

 

3%

 

 

(Gain) loss on asset disposals, net

 

1 

 

 

4 

 

 

(62)%

 

 

(Gain) loss on license sales and exchanges, net

 

(7)

 

 

(17)

 

 

61%

 

 

 

 

 

877 

 

 

882 

 

 

(1)%

 

TDS Telecom (2)

 

 

 

 

 

 

 

 

 

 

Expenses excluding depreciation, amortization and accretion (4)

 

151 

 

 

148 

 

 

2%

 

 

Depreciation, amortization and accretion

 

54 

 

 

49 

 

 

10%

 

 

(Gain) loss on asset disposals, net

 

– 

 

 

1 

 

 

(51)%

 

 

 

 

 

205 

 

 

198 

 

 

4%

 

All Other (2)(3)

 

 

 

 

 

 

 

 

 

 

Expenses excluding depreciation and amortization (4)

 

55 

 

 

68 

 

 

(18)%

 

 

Depreciation and amortization

 

8 

 

 

9 

 

 

(4)%

 

 

(Gain) loss on asset disposals, net

 

1 

 

 

(1)

 

 

(53)%

 

 

 

 

 

63 

 

 

77 

 

 

(17)%

 

 

 

Total operating expenses

 

1,145 

 

 

1,157 

 

 

(1)%

Operating income (loss)

 

 

 

 

 

 

 

 

 

U.S. Cellular

 

65 

 

 

54 

 

 

21%

 

TDS Telecom (2)(4)

 

25 

 

 

30 

 

 

(17)%

 

All Other (2)(3)(4)

 

(10)

 

 

(3)

 

 

>(100)%

 

 

 

 

 

80 

 

 

81 

 

 

(2)%

Investment and other income (expense)

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated entities

 

38 

 

 

32 

 

 

17%

 

Interest and dividend income

 

5 

 

 

4 

 

 

32%

 

Interest expense

 

(43)

 

 

(42)

 

 

(2)%

 

Other, net (4)

 

1 

 

 

2 

 

 

(44)%

 

 

Total investment and other income (expense) (4)

 

1 

 

 

(4)

 

 

>100%

Income before income taxes

 

81 

 

 

77 

 

 

5%

 

Income tax expense

 

24 

 

 

34 

 

 

(29)%

Net income

 

57 

 

 

43 

 

 

33%

 

Less: Net income attributable to noncontrolling

 

 

 

 

 

 

 

 

 

 

interests, net of tax

 

18 

 

 

6 

 

 

>100%

Net income available to TDS common shareholders

$

39 

 

$

37 

 

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

111 

 

 

110 

 

 

1%

Basic earnings per share available to TDS common shareholders

$

0.35 

 

$

0.34 

 

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

113 

 

 

112 

 

 

1%

Diluted earnings per share available to TDS common shareholders

$

0.34 

 

$

0.33 

 

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

Note:  Totals may not foot due to rounding differences.

 

 

 

 

 

 

 

 

 

 

 

 

(1)

As of January 1, 2018, TDS adopted the new revenue recognition standard, ASC 606, using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASC 606, but 2017 amounts remain as previously reported, except as specifically stated.

 

 

 

 

 

 

 

 

 

 

 

 

(2)

TDS has re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, has changed its reportable segments.  Effective January 1, 2018, HMS is no longer reported under TDS Telecom.  Prior periods have been recast to conform to the revised presentation.

 

 

 

 

 

 

 

 

 

 

 

 

(3)

Consists of TDS corporate, intercompany eliminations and all other business operations not included in the U.S. Cellular and TDS Telecom segments.

 

 

 

 

 

 

 

 

 

 

 

 

(4)

ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted January 1, 2018, and applied retrospectively.  All prior period numbers have been recast to conform to this standard.



7

 

 


 


Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

March 31,

 

2018 (1)

 

2017

(Dollars in millions)

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net income

$

57 

 

$

43 

 

Add (deduct) adjustments to reconcile net income to net cash flows

 

 

 

 

 

 

  from operating activities

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion

 

221 

 

 

211 

 

 

 

Bad debts expense

 

20 

 

 

24 

 

 

 

Stock-based compensation expense

 

10 

 

 

11 

 

 

 

Deferred income taxes, net

 

26 

 

 

(1)

 

 

 

Equity in earnings of unconsolidated entities

 

(38)

 

 

(32)

 

 

 

Distributions from unconsolidated entities

 

17 

 

 

11 

 

 

 

(Gain) loss on asset disposals, net

 

2 

 

 

4 

 

 

 

(Gain) loss on license sales and exchanges, net

 

(7)

 

 

(17)

 

 

 

Noncash interest

 

1 

 

 

1 

 

Changes in assets and liabilities from operations

 

 

 

 

 

 

 

 

Accounts receivable

 

77 

 

 

28 

 

 

 

Equipment installment plans receivable

 

(17)

 

 

(44)

 

 

 

Inventory

 

(8)

 

 

– 

 

 

 

Accounts payable

 

(32)

 

 

(75)

 

 

 

Customer deposits and deferred revenues

 

(28)

 

 

(12)

 

 

 

Accrued taxes

 

(24)

 

 

33 

 

 

 

Accrued interest

 

11 

 

 

9 

 

 

 

Other assets and liabilities

 

(74)

 

 

(57)

 

 

 

 

Net cash provided by operating activities

 

214 

 

 

137 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Cash paid for additions to property, plant and equipment

 

(131)

 

 

(127)

 

Cash paid for acquisitions and licenses

 

(9)

 

 

(14)

 

Cash received for investments

 

100 

 

 

– 

 

Cash received from divestitures and exchanges

 

4 

 

 

16 

 

 

 

 

Net cash used in investing activities

 

(36)

 

 

(125)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Repayment of long-term debt

 

(5)

 

 

(3)

 

TDS Common Shares reissued for benefit plans, net of tax payments

 

9 

 

 

1 

 

U.S. Cellular Common Shares reissued for benefit plans, net of tax payments

 

2 

 

 

3 

 

Dividends paid to TDS shareholders

 

(18)

 

 

(17)

 

Other financing activities

 

(5)

 

 

– 

 

 

 

 

Net cash used in financing activities

 

(17)

 

 

(16)

 

 

 

 

 

 

 

 

 

 

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

 

161 

 

 

(4)

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

 

 

 

 

 

Beginning of period

 

622 

 

 

904 

 

End of period

$

783 

 

$

900 

 

 

 

 

 

 

 

 

 

 

(1)

As of January 1, 2018, TDS adopted the new revenue recognition standard, ASC 606, using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASC 606, but 2017 amounts remain as previously reported.

 



8

 

 


 


  

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

 

2018 (1)

 

2017

(Dollars in millions)

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

$

779 

 

$

619 

 

Short-term investments

 

– 

 

 

100 

 

Accounts receivable

 

955 

 

 

961 

 

Inventory, net

 

153 

 

 

145 

 

Prepaid expenses

 

104 

 

 

112 

 

Income taxes receivable

 

10 

 

 

2 

 

Other current assets

 

42 

 

 

27 

 

 

Total current assets

 

2,043 

 

 

1,966 

 

 

 

 

 

 

 

 

Assets held for sale

 

6 

 

 

10 

 

 

 

 

 

 

 

 

Licenses

 

2,240 

 

 

2,232 

Goodwill

 

509 

 

 

509 

Other intangible assets, net

 

273 

 

 

279 

Investments in unconsolidated entities

 

488 

 

 

453 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

3,335 

 

 

3,424 

 

 

 

 

 

 

 

 

Other assets and deferred charges

 

587 

 

 

422 

 

 

 

 

 

 

 

 

Total assets

$

9,481 

 

$

9,295 



9

 

 


 


Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

 

 

2018 (1)

 

2017

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

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current portion of long-term debt

$

20 

 

$

20 

 

Accounts payable

 

322 

 

 

368 

 

Customer deposits and deferred revenues

 

169 

 

 

223 

 

Accrued interest

 

22 

 

 

11 

 

Accrued taxes

 

45 

 

 

64 

 

Accrued compensation

 

77 

 

 

126 

 

Other current liabilities

 

95 

 

 

106 

 

 

Total current liabilities

 

750 

 

 

918 

 

 

 

 

 

 

 

 

 

Deferred liabilities and credits

 

 

 

 

 

 

Deferred income tax liability, net

 

634 

 

 

552 

 

Other deferred liabilities and credits

 

516 

 

 

495 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

2,431 

 

 

2,437 

 

 

 

 

 

 

 

 

 

Noncontrolling interests with redemption features

 

11 

 

 

1 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

TDS shareholders' equity

 

 

 

 

 

 

 

Series A Common and Common Shares, par value $.01

 

1 

 

 

1 

 

 

Capital in excess of par value

 

2,421 

 

 

2,413 

 

 

Treasury shares, at cost

 

(643)

 

 

(669)

 

 

Accumulated other comprehensive income

 

(3)

 

 

(1)

 

 

Retained earnings

 

2,696 

 

 

2,525 

 

 

 

   Total TDS shareholders' equity

 

4,472 

 

 

4,269 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests

 

667 

 

 

623 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

5,139 

 

 

4,892 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

$

9,481 

 

$

9,295 

 

 

 

 

 

 

 

 

 

(1)

As of January 1, 2018, TDS adopted the new revenue recognition standard, ASC 606, using a modified retrospective approach.  Under this method, the new accounting standard is applied only to the most recent period presented.  As a result, 2018 amounts include the impacts of ASC 606, but 2017 amounts remain as previously reported.

 



10

 

 


 


Balance Sheet Highlights

(Unaudited)

 

 

 

March 31, 2018

 

 

U.S.

 

TDS

 

TDS Corporate

 

Intercompany

 

TDS

 

 

Cellular

 

Telecom

 

& Other

 

Eliminations

 

Consolidated

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

509 

 

$

21 

 

$

249 

 

$

– 

 

$

779 

Affiliated cash investments

 

– 

 

 

359 

 

 

– 

 

 

(359)

 

 

– 

 

 

$

509 

 

$

380 

 

$

249 

 

$

(359)

 

$

779 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Licenses, goodwill and other intangible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

assets

$

2,231 

 

$

768 

 

$

23 

 

$

– 

 

$

3,022 

Investment in unconsolidated entities

 

450 

 

 

4 

 

 

41 

 

 

(7)

 

 

488 

 

 

$

2,681 

 

$

772 

 

$

64 

 

$

(7)

 

$

3,510 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

$

2,233 

 

$

969 

 

$

133 

 

$

– 

 

$

3,335 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion

$

18 

 

$

1 

 

$

1 

 

$

– 

 

$

20 

 

Non-current portion

 

1,618 

 

 

2 

 

 

811 

 

 

– 

 

 

2,431 

 

 

$

1,636 

 

$

3 

 

$

812 

 

$

– 

 

$

2,451 



11

 

 


 


TDS Telecom Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 vs. 2016

 

 

 

 

 

 

 

 

 

 

 

Increase

Three Months Ended March 31,

2018 (1)

 

2017

 

 

(Decrease)

(Dollars in millions)

 

 

 

 

 

 

 

 

Wireline

 

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

 

Residential

$

80 

 

$

79 

 

 

1%

 

Commercial

 

48 

 

 

51 

 

 

(6)%

 

Wholesale

 

47 

 

 

49 

 

 

(4)%

 

 

Total service revenues

 

175 

 

 

179 

 

 

(2)%

 

Equipment and product sales

 

– 

 

 

– 

 

 

26%

 

 

 

 

 

175 

 

 

179 

 

 

(2)%

Operating expenses

 

 

 

 

 

 

 

 

 

Cost of services

 

65 

 

 

63 

 

 

3%

 

Cost of equipment and products

 

– 

 

 

1 

 

 

(23)%

 

Selling, general and administrative expenses (2)

 

47 

 

 

48 

 

 

(3)%

 

Expenses excluding depreciation, amortization and accretion

 

112 

 

 

112 

 

 

-

 

Depreciation, amortization and accretion

 

37 

 

 

39 

 

 

(5)%

 

 

 

 

 

149 

 

 

151 

 

 

(1)%

 

Operating income (2)

$

26 

 

$

28 

 

 

(6)%

 

 

 

 

 

 

 

 

 

 

 

 

Cable

 

 

 

 

 

 

 

 

Operating revenues

 

 

 

 

 

 

 

 

 

Residential

$

46 

 

$

41 

 

 

12%

 

Commercial

 

10 

 

 

9 

 

 

13%

 

 

 

 

55 

 

 

49 

 

 

12%

Operating expenses

 

 

 

 

 

 

 

 

 

Cost of services

 

26 

 

 

24 

 

 

7%

 

Selling, general and administrative expenses

 

13 

 

 

13 

 

 

6%

 

Expenses excluding depreciation, amortization and accretion

 

39 

 

 

36 

 

 

7%

 

Depreciation, amortization and accretion

 

17 

 

 

10 

 

 

71%

 

 

 

 

 

57 

 

 

47 

 

 

20%

 

Operating income

$

(1)

 

$

2 

 

 

>(100)%

 

 

 

 

 

 

 

 

 

 

 

 

Total TDS Telecom operating income (2)(3)

$

25 

 

$

30 

 

 

(17)%

 

 

 

 

 

 

 

 

 

 

 

 

Note:  Totals may not foot due to rounding differences.

 

 

 

 

 

 

 

 

 

 

 

 

(1)

As of January 1, 2018, TDS adopted the new revenue recognition standard, ASC 606, using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASC 606, but 2017 amounts remain as previously reported, except as specifically stated.

 

 

 

 

 

 

 

 

 

 

 

 

(2)

ASU 2017-07, regarding net periodic pension cost and net periodic postretirement benefit cost was adopted as of January 1, 2018, and applied retrospectively.  All prior period numbers have been recast to conform to this standard.

 

 

 

 

 

 

 

 

 

 

 

 

(3)

TDS has re-evaluated internal reporting roles with regard to its HMS business unit and, as a result, has changed its reportable segments.  Effective January 1, 2018, HMS is no longer reported under TDS Telecom.  Prior periods have been recast to conform to the revised presentation.



12

 

 


 


Telephone and Data Systems, Inc.

Financial Measures and Reconciliations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

2018

 

2017

(Dollars in millions)

 

 

 

 

 

 

Cash flows from operating activities (GAAP)

 

$

214 

 

$

137 

Less: Cash paid for additions to property, plant and equipment

 

 

131 

 

 

127 

 

 

Free cash flow (Non-GAAP)(1)

 

$

83 

 

$

10 

 

 

 

 

 

 

 

 

 

(1)

Management uses Free cash flow as a liquidity measure and it is defined as Cash flows from operating activities less Cash paid for additions to property, plant and equipment.  Free cash flow is a non-GAAP financial measure which TDS 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.

Postpaid ABPU and Postpaid ABPA

U.S. Cellular presents Postpaid ABPU and Postpaid ABPA to reflect the revenue shift from Service revenues to Equipment and product sales resulting from the increased adoption of equipment installment plans.  Postpaid ABPU and Postpaid ABPA, as previously defined herein, are non-GAAP financial measures which U.S. Cellular believes are useful to investors and other users of its financial information in showing trends in both service and equipment and product sales revenues received from customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

3/31/2018 (1)

 

 

12/31/2017

 

 

9/30/2017

 

 

6/30/2017

 

 

3/31/2017

(Dollars and connection counts in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Postpaid ARPU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid service revenues

$

598 

 

$

598 

 

$

586 

 

$

597 

 

$

608 

Average number of postpaid connections

 

4.50 

 

 

4.52 

 

 

4.50 

 

 

4.47 

 

 

4.46 

Number of months in period

 

3 

 

 

3 

 

 

3 

 

 

3 

 

 

3 

 

Postpaid ARPU (GAAP metric)

$

44.34 

 

$

44.12 

 

$

43.41 

 

$

44.60 

 

$

45.42 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Postpaid ABPU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid service revenues

$

598 

 

$

598 

 

$

586 

 

$

597 

 

$

608 

Equipment installment plan billings

 

172 

 

 

170 

 

 

152 

 

 

142 

 

 

139 

 

Total billings to postpaid connections

$

770 

 

$

768 

 

$

738 

 

$

739 

 

$

747 

Average number of postpaid connections

 

4.50 

 

 

4.52 

 

 

4.50 

 

 

4.47 

 

 

4.46 

Number of months in period

 

3 

 

 

3 

 

 

3 

 

 

3 

 

 

3 

 

Postpaid ABPU (Non-GAAP metric)

$

57.10 

 

$

56.69 

 

$

54.71 

 

$

55.19 

 

$

55.82 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Postpaid ARPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid service revenues

$

598 

 

$

598 

 

$

586 

 

$

597 

 

$

608 

Average number of postpaid accounts

 

1.69 

 

 

1.69 

 

 

1.68 

 

 

1.66 

 

 

1.66 

Number of months in period

 

3 

 

 

3 

 

 

3 

 

 

3 

 

 

3 

 

Postpaid ARPA (GAAP metric)

$

118.22 

 

$

118.05 

 

$

116.36 

 

$

119.73 

 

$

121.88 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Postpaid ABPA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postpaid service revenues

$

598 

 

$

598 

 

$

586 

 

$

597 

 

$

608 

Equipment installment plan billings

 

172 

 

 

170 

 

 

152 

 

 

142 

 

 

139 

 

Total billings to postpaid accounts

$

770 

 

$

768 

 

$

738 

 

$

739 

 

$

747 

Average number of postpaid accounts

 

1.69 

 

 

1.69 

 

 

1.68 

 

 

1.66 

 

 

1.66 

Number of months in period

 

3 

 

 

3 

 

 

3 

 

 

3 

 

 

3 

 

Postpaid ABPA (Non-GAAP metric)

$

152.26 

 

$

151.68 

 

$

146.65 

 

$

148.15 

 

$

149.78 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

As of January 1, 2018, U.S. Cellular adopted the new revenue recognition standard, ASC 606, using a modified retrospective approach. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2018 amounts include the impacts of ASC 606, but 2017 amounts remain as previously reported.

 


13

 

 


TELEPHONE & DATA SYSTEMS INC /DE/ Reports