TDS reports fourth quarter and full year 2020 results

Rhea-AI Summary

Telephone and Data Systems (TDS) reported Q4 2020 revenues of $1,376 million, up from $1,336 million year-over-year, with a net income of $14 million compared to $12 million. Full-year revenues for 2020 were $5,225 million, a slight increase from $5,176 million in 2019. UScellular showed growth in service revenues, supported by higher ARPU and reduced churn. TDS Telecom expanded broadband initiatives, driven by remote working demand, and plans to double fiber service addresses in 2021. Estimated service revenues for UScellular in 2021 range from $3,025-$3,125 million.

Positive

• Q4 2020 revenues increased to $1,376 million from $1,336 million.
• Net income rose to $14 million, up from $12 million in Q4 2019.
• 2020 total revenues reached $5,225 million, compared to $5,176 million in 2019.
• UScellular maintained low churn and increased service revenues driven by higher ARPU.
• Successful broadband strategy resulted in growth in residential customer connections.
• TDS Telecom plans to double fiber service addresses in 2021.

Negative

• Despite revenue growth, net income for 2020 was significantly lower than projected estimates.
• Capital expenditures for UScellular exceeded estimates, reaching $940 million against a forecast of $775-$875 million.

CHICAGO, Feb. 18, 2021 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on February 19, 2021 at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,376 million for the fourth quarter of 2020, versus $1,336 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $14 million and $0.12, respectively, for the fourth quarter of 2020 compared to $12 million and $0.10, respectively, in the same period one year ago.

TDS reported total operating revenues of $5,225 million and $5,176 million for the years ended 2020 and 2019, respectively. Net income attributable to TDS shareholders and related diluted earnings per share were $226 million and $1.93, respectively, for the year ended 2020 compared to $121 million and $1.03, respectively, for the year ended 2019.

"The TDS Family of Businesses successfully overcame the challenges of 2020, finishing the year with excellent communications services, strong financial performance and heightened awareness of the essential services that TDS and our industry provides," said LeRoy T. Carlson, Jr., TDS President and CEO. "UScellular kept churn low throughout the year, acquired new retail connections, maintained strong cost discipline and produced fine financial results. Under the leadership of our new CEO, Laurent Therivel,  UScellular is in a strong position to focus on growth in 2021. TDS Telecom accomplished a transformational year as execution of its broadband-focused strategy enabled it to respond to the seismic shift to remote working and learning, highlighting the importance of high-speed broadband in the home.

"UScellular grew its service revenues, driven primarily by higher ARPU, and customers taking higher-value services and it maintained operational, quality and cost discipline. These factors contributed to increased profitability year-over-year. Significant progress was achieved with both network modernization and deployment of 5G. In 2021, connecting customers, especially in underserved areas, with the highest-quality network continues to be one of UScellular's top priorities and remains a key competitive differentiator. UScellular will also be focused on market share expansion, ramping up business and government customer opportunities that utilize 5G and IoT, enhancing customers' digital experiences, and continuing its network modernization and 5G programs. 

"TDS Telecom achieved excellent growth in residential customer connections and strong financial performance in 2020, reflecting the successful execution of its broadband strategy, bolstered by increased consumer demand for broadband services caused by the large shift to remote work and learning. Out-of-territory fiber expansions and customers increasing their data speeds drove higher revenues. Successful efforts to reduce costs enabled TDS Telecom to redirect more resources to important growth opportunities. TDS Telecom's cable segment continued to significantly grow through the Continuum acquisition and increases in broadband penetration. TDS Telecom expanded its deployment of fiber both inside and outside of its traditional markets. Given the positive impacts we are seeing from our fiber investments, TDS Telecom plans to expand its fiber program by doubling the number of service addresses it builds in 2021.

"Our associates showed tremendous focus, resilience and dedication during this incredibly challenging year. I thank each of them. TDS' strong performance is a direct result of their hard and thoughtful work. The TDS Team looks forward to a very successful 2021, and to the progress we will continue to make on our long-term growth initiatives throughout the TDS Family of Businesses."

2021 Estimated Results

TDS' current estimates of full-year 2021 results for UScellular and TDS Telecom are shown below. Such estimates represent management's view as of February 18, 2021 and should not be assumed to be current as of any future date. TDS 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.

UScellular	2021 Estimated Results		Actual Results for the Year Ended December 31, 2020
(Dollars in millions)
Service revenues	$3,025-$3,125		$3,067
Adjusted OIBDA1	$800-$950		$876
Adjusted EBITDA1	$975-$1,125		$1,063
Capital expenditures	$775-$875		$940
TDS Telecom	2021 Estimated Results		Actual Results for the Year Ended December 31, 2020
(Dollars in millions)
Total operating revenues	$975-$1,025		$976
Adjusted OIBDA1	$290-$320		$314
Adjusted EBITDA1	$290-$320		$317
Capital expenditures	$425-$475		$368

The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2021 estimated results and actual results for the year ended December 31, 2020. In providing 2021 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.

	UScellular						TDS Telecom
	Estimate			Actual			Estimate			Actual
(Dollars in millions)
Net income (GAAP)	N/A			$233			N/A			$100
Add back:
Income tax expense	N/A			17			N/A			18
Income before income taxes (GAAP)	$135-$285			$250			$80-$110			$117
Add back:
Interest expense	135			112			—			(4)
Depreciation, amortization and accretion expense	685			683			210			203
EBITDA (Non-GAAP)1	$955-$1,105			$1,045			$290-$320			$316
Add back or deduct:
(Gain) loss on asset disposals, net	20			25			—			1
(Gain) loss on license sales and exchanges, net	—			(5)			—			—
(Gain) loss on investments	—			(2)			—			—
Adjusted EBITDA (Non-GAAP)1	$975-$1,125			$1,063			$290-$320			$317
Deduct:
Equity in earnings of unconsolidated entities	170			179			—			—
Interest and dividend income	5			8			—			5
Other, net	—			—			—			(1)
Adjusted OIBDA (Non-GAAP)1	$800-$950			$876			$290-$320			$314

Numbers may not foot due to rounding.
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. 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 before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for December 31, 2020, can be found on TDS' website at investors.tdsinc.com.

Conference Call Information
TDS will hold a conference call on February 19, 2021 at 9:00 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/1145/40052
• Access the call by phone at 833-968-2187 (US/Canada), conference ID: 5593349

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, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,200 people as of December 31, 2020.

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

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 obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' smaller scale relative to larger competitors; 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 TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and 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; pending and future litigation; cyber-attacks or other breaches of network or information technology security; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; the impact, duration and severity of public health emergencies, such as the COVID-19 pandemic. 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 TDS' Form 10-K.

For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
OneNeck IT Solutions: www.oneneck.com

 

United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended	12/31/2020				9/30/2020				6/30/2020				3/31/2020				12/31/2019
Retail Connections
Postpaid
Total at end of period	4,412,000				4,401,000				4,372,000				4,359,000				4,383,000
Gross additions	171,000				168,000				129,000				132,000				170,000
Feature phones	2,000				4,000				3,000				2,000				2,000
Smartphones	117,000				98,000				82,000				88,000				128,000
Connected devices	52,000				66,000				44,000				42,000				40,000
Net additions (losses)	11,000				28,000				12,000				(26,000)				(12,000)
Feature phones	(9,000)				(8,000)				(8,000)				(10,000)				(11,000)
Smartphones	12,000				8,000				11,000				(10,000)				13,000
Connected devices	8,000				28,000				9,000				(6,000)				(14,000)
ARPU1	$	47.51			$	47.10			$	46.24			$	47.23			$	46.57
ARPA2	$	124.87			$	123.27			$	120.70			$	122.92			$	120.99
Churn rate3	1.21		%		1.06		%		0.89		%		1.21		%		1.38		%
Handsets	1.01		%		0.88		%		0.71		%		0.95		%		1.11		%
Connected devices	2.64		%		2.35		%		2.24		%		3.11		%		3.44		%
Prepaid
Total at end of period	499,000				506,000				496,000				494,000				506,000
Gross additions	56,000				65,000				62,000				57,000				63,000
Net additions (losses)	(8,000)				11,000				2,000				(12,000)				(3,000)
ARPU1	$	35.15			$	35.45			$	34.89			$	34.07			$	34.11
Churn rate3	4.24		%		3.59		%		4.05		%		4.67		%		4.40		%
Total connections at end of period4	4,968,000				4,962,000				4,919,000				4,903,000				4,941,000
Market penetration at end of period
Consolidated operating population	31,314,000				31,314,000				31,292,000				31,292,000				30,740,000
Consolidated operating penetration5	16		%		16		%		16		%		16		%		16		%
Capital expenditures (millions)	$	320			$	216			$	168			$	236			$	243
Total cell sites in service	6,797				6,758				6,673				6,629				6,578
Owned towers	4,271				4,246				4,208				4,184				4,166

Due to rounding, the sum of quarterly results may not equal the total for the year.
1	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.
2	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.
3	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.
4	Includes reseller and other connections.
5	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.

 

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended	12/31/2020				9/30/2020				6/30/2020				3/31/2020				12/31/2019
TDS Telecom
Wireline
Residential connections
Voice1	256,900				260,000				261,800				259,100				262,100
Broadband2	262,900				260,700				255,100				242,700				241,300
Video3	63,000				62,300				61,400				59,000				58,500
Wireline residential connections	582,800				583,000				578,300				560,700				561,900
Total residential revenue per connection4	$	51.33			$	51.45			$	49.73			$	50.12			$	49.11
Commercial connections
Voice1	106,700				109,400				112,400				114,400				117,800
Broadband2	21,000				20,800				20,700				20,500				20,400
managedIP5	111,400				114,900				115,500				118,300				121,200
Video3	200				200				200				100				100
Wireline commercial connections	239,400				245,400				248,700				253,400				259,600
Total Wireline connections	822,200				828,400				827,000				814,200				821,500
Cable
Cable residential and commercial connections
Broadband6	209,400				206,200				203,700				196,800				193,500
Video7	100,800				101,800				103,400				105,100				106,600
Voice8	66,800				67,700				69,000				68,900				69,500
managedIP5	1,900				1,800				1,800				1,400				1,300
Total Cable connections	378,900				377,400				378,000				372,300				370,900

Numbers may not foot due to rounding.
1	The individual circuits connecting a customer to Wireline's central office facilities that provide voice services.
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	12/31/2020				9/30/2020				6/30/2020				3/31/2020				12/31/2019
(Dollars in millions)
Wireline	$	122			$	74			$	58			$	39			$	98
Cable	25				18				17				15				26
Total TDS Telecom	$	147			$	92			$	75			$	54			$	124

 

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
	Three Months Ended December 31,											Year Ended December 31,
	2020				2019				2020 vs. 2019			2020				2019				2020 vs. 2019
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular	$	1,073			$	1,052			2	%		$	4,037			$	4,022			–
TDS Telecom	248				235				6	%		976				930				5	%
All Other1	55				49				10	%		212				224				(6)	%
	1,376				1,336				3	%		5,225				5,176				1	%
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion	895				871				3	%		3,161				3,190				(1)	%
Depreciation, amortization and accretion	168				178				(6)	%		683				702				(3)	%
(Gain) loss on asset disposals, net	11				6				91	%		25				19				36	%
(Gain) loss on sale of business and other exit costs, net	—				—				N/M			—				(1)				N/M
(Gain) loss on license sales and exchanges, net	(5)				—				N/M			(5)				—				N/M
	1,069				1,055				1	%		3,864				3,910				(1)	%
TDS Telecom
Expenses excluding depreciation, amortization and accretion	175				162				8	%		663				629				5	%
Depreciation, amortization and accretion	50				51				(1)	%		203				200				1	%
(Gain) loss on asset disposals, net	—				—				38	%		1				(7)				N/M
	226				213				6	%		866				823				5	%
All Other1
Expenses excluding depreciation and amortization	55				53				3	%		211				235				(10)	%
Depreciation and amortization	6				7				(22)	%		23				30				(23)	%
(Gain) loss on asset disposals, net	—				—				N/M			1				—				19	%
	60				60				–			236				264				(11)	%
Total operating expenses	1,355				1,328				2	%		4,966				4,997				(1)	%
Operating income (loss)
UScellular	4				(3)				N/M			173				112				54	%
TDS Telecom	23				21				6	%		110				107				3	%
All Other1	(6)				(11)				47	%		(24)				(40)				41	%
	21				8				N/M			259				179				45	%
Investment and other income (expense)
Equity in earnings of unconsolidated entities	43				39				11	%		181				168				8	%
Interest and dividend income	3				5				(33)	%		15				29				(49)	%
Gain (loss) on investments	(1)				—				N/M			2				—				N/M
Interest expense	(50)				(37)				(36)	%		(168)				(165)				(2)	%
Other, net	—				(1)				N/M			(1)				—				N/M
Total investment and other income	(5)				6				N/M			29				32				(10)	%
Income before income taxes	16				14				13	%		288				211				36	%
Income tax expense	—				(1)				N/M			19				64				(71)	%
Net income	16				15				4	%		269				147				83	%
Less: Net income attributable to noncontrolling interests, net of tax	2				3				(44)	%		43				26				70	%
Net income attributable to TDS shareholders	$	14			$	12			18	%		$	226			$	121			86	%
Basic weighted average shares outstanding	114				115				–			114				114				–
Basic earnings per share attributable to TDS shareholders	$	0.12			$	0.10			19	%		$	1.97			$	1.06			86	%
Diluted weighted average shares outstanding	115				116				–			115				116				–
Diluted earnings per share attributable to TDS shareholders	$	0.12			$	0.10			21	%		$	1.93			$	1.03			87	%

N/M - Percentage change not meaningful.
Numbers may not foot due to rounding.
1	Consists of TDS corporate, intercompany eliminations and all other business operations not included in the UScellular and TDS Telecom segments.

 

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31,	2020				2019
(Dollars in millions)
Cash flows from operating activities
Net income	$	269			$	147
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	909				932
Bad debts expense	77				112
Stock-based compensation expense	53				59
Deferred income taxes, net	190				34
Equity in earnings of unconsolidated entities	(181)				(168)
Distributions from unconsolidated entities	189				162
(Gain) loss on asset disposals, net	27				12
(Gain) loss on sale of business and other exit costs, net	—				(1)
(Gain) loss on license sales and exchanges, net	(5)				—
(Gain) loss on investments	(2)				—
Other operating activities	3				4
Changes in assets and liabilities from operations
Accounts receivable	(16)				(49)
Equipment installment plans receivable	(54)				(97)
Inventory	12				(19)
Accounts payable	173				(60)
Customer deposits and deferred revenues	4				(9)
Accrued taxes	(120)				(17)
Other assets and liabilities	4				(26)
Net cash provided by operating activities	1,532				1,016
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(1,338)				(957)
Cash paid for acquisitions and licenses	(172)				(346)
Cash received from investments	1				29
Cash paid for investments	(3)				(11)
Cash received from divestitures and exchanges	26				41
Advance payments for license acquisitions	(30)				(5)
Other investing activities	5				—
Net cash used in investing activities	(1,511)				(1,249)
Cash flows from financing activities
Issuance of long-term debt	1,250				—
Repayment of long-term debt	(110)				(118)
TDS Common Shares reissued for benefit plans, net of tax payments	(3)				(6)
UScellular Common Shares reissued for benefit plans, net of tax payments	(11)				(9)
Repurchase of TDS Common Shares	(14)				—
Repurchase of UScellular Common Shares	(23)				(21)
Dividends paid to TDS shareholders	(78)				(75)
Payment of debt issuance costs	(41)				(1)
Distributions to noncontrolling interests	(2)				(4)
Payments to acquire additional interest in subsidiaries	(11)				—
Other financing activities	—				14
Net cash provided by (used in) financing activities	957				(220)
Net increase (decrease) in cash, cash equivalents and restricted cash	978				(453)
Cash, cash equivalents and restricted cash
Beginning of period	474				927
End of period	$	1,452			$	474

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
December 31,	2020				2019
(Dollars in millions)
Current assets
Cash and cash equivalents	$	1,429			$	465
Short-term investments	3				—
Accounts receivable, net	1,112				1,124
Inventory, net	154				169
Prepaid expenses	105				98
Income taxes receivable	187				36
Other current assets	36				29
Total current assets	3,026				1,921
Assets held for sale	2				—
Licenses	2,638				2,480
Goodwill	547				547
Other intangible assets, net	213				239
Investments in unconsolidated entities	477				488
Property, plant and equipment, net	3,972				3,527
Operating lease right-of-use assets	998				972
Other assets and deferred charges	652				607
Total assets	$	12,525			$	10,781

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
December 31,	2020				2019
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt	$	5			$	10
Accounts payable	508				374
Customer deposits and deferred revenues	193				189
Accrued interest	16				11
Accrued taxes	69				41
Accrued compensation	132				121
Short-term operating lease liabilities	129				116
Other current liabilities	101				100
Total current liabilities	1,153				962
Liabilities held for sale	1				—
Deferred liabilities and credits
Deferred income tax liability, net	863				676
Long-term operating lease liabilities	940				931
Other deferred liabilities and credits	541				481
Long-term debt, net	3,424				2,316
Noncontrolling interests with redemption features	10				11
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share	1				1
Capital in excess of par value	2,482				2,468
Treasury shares, at cost	(477)				(479)
Accumulated other comprehensive loss	(4)				(9)
Retained earnings	2,802				2,672
Total TDS shareholders' equity	4,804				4,653
Noncontrolling interests	789				751
Total equity	5,593				5,404
Total liabilities and equity	$	12,525			$	10,781

 

Balance Sheet Highlights
(Unaudited)
	December 31, 2020
	UScellular				TDS Telecom				TDS Corporate & Other				Intercompany Eliminations				TDS Consolidated
(Dollars in millions)
Cash and cash equivalents	$	1,271			$	178			$	170			$	(190)			$	1,429
Licenses, goodwill and other intangible assets	$	2,629			$	761			$	8			$	—			$	3,398
Investment in unconsolidated entities	435				4				45				(7)				477
	$	3,064			$	765			$	53			$	(7)			$	3,875
Property, plant and equipment, net	$	2,466			$	1,408			$	98			$	—			$	3,972
Long-term debt, net:
Current portion	$	2			$	—			$	3			$	—			$	5
Non-current portion	2,489				4				931				—				3,424
	$	2,491			$	4			$	934			$	—			$	3,429

 

TDS Telecom Highlights
(Unaudited)
	Three Months Ended December 31,											Year Ended December 31,
	2020				2019				2020 vs. 2019			2020				2019				2020 vs. 2019
(Dollars in millions)
Wireline
Operating revenues
Residential	$	90			$	83			8	%		$	349			$	328			6	%
Commercial	37				40				(8)	%		152				168				(9)	%
Wholesale	46				47				(3)	%		182				186				(2)	%
Total service revenues	173				171				1	%		684				682				–
Equipment and product sales	—				—				(34)	%		1				1				(31)	%
	173				171				1	%		685				683				–
Operating expenses
Cost of services	72				68				5	%		269				263				2	%
Cost of equipment and products	—				—				(55)	%		1				1				(36)	%
Selling, general and administrative expenses	51				50				1	%		199				199				–
Expenses excluding depreciation, amortization and accretion	123				119				3	%		468				463				1	%
Depreciation, amortization and accretion	30				33				(9)	%		124				132				(6)	%
(Gain) loss on asset disposals, net	—				—				N/M			—				(8)				N/M
	154				153				1	%		593				587				1	%
Operating income	$	19			$	18			5	%		$	92			$	96			(4)	%
Cable
Operating revenues
Residential	$	63			$	53			19	%		$	245			$	205			20	%
Commercial	13				11				15	%		47				43				10	%
	76				64				18	%		292				247				18	%
Operating expenses
Cost of services	33				26				24	%		123				105				17	%
Selling, general and administrative expenses	19				17				12	%		72				62				16	%
Expenses excluding depreciation, amortization and accretion	52				44				19	%		195				167				17	%
Depreciation, amortization and accretion	20				17				16	%		78				68				15	%
(Gain) loss on asset disposals, net	—				—				(87)	%		1				1				(26)	%
	72				61				18	%		274				236				16	%
Operating income	$	4			$	3			17	%		$	18			$	11			60	%
Total TDS Telecom operating income	$	23			$	21			6	%		$	110			$	107			3	%

N/M - Percentage change not meaningful.

Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.
Financial Measures and Reconciliations
Free Cash Flow
	Three Months Ended December 31,								Year Ended December 31,
	2020				2019				2020				2019
(Dollars in millions)
Cash flows from operating activities (GAAP)	$	366			$	142			$	1,532			$	1,016
Less: Cash paid for additions to property, plant and equipment	424				326				1,338				957
Free cash flow (Non-GAAP)1	$	(58)			$	(184)			$	194			$	59

1	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.

 

View original content:http://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2020-results-301231266.html

SOURCE Telephone and Data Systems

FAQ

What are the Q4 2020 financial results for TDS?

TDS reported Q4 2020 revenues of $1,376 million and net income of $14 million.

How did TDS perform in 2020 compared to 2019?

TDS's total operating revenues for 2020 were $5,225 million, up from $5,176 million in 2019.

What were the 2021 revenue estimates for UScellular?

UScellular's 2021 estimated service revenues are projected to be between $3,025 million and $3,125 million.

What strategies are being implemented by TDS Telecom?

TDS Telecom's strategy includes expanding fiber service addresses and enhancing broadband services.

When will TDS hold its conference call?

TDS will hold a teleconference on February 19, 2021, at 9:00 a.m. CST.