UScellular reports fourth quarter and full year 2024 results
UScellular (NYSE: USM) reported Q4 2024 operating revenues of $970 million, down from $1,000 million in Q4 2023. Q4 2024 net income was $5 million ($0.05 per share), compared to $14 million ($0.16 per share) in Q4 2023.
For full-year 2024, total operating revenues were $3,770 million, down from $3,906 million in 2023. The company reported a net loss of $39 million (-$0.46 per share) for 2024, compared to net income of $54 million ($0.63 per share) in 2023. Excluding a Q3 2024 license impairment of $136 million ($102 million after tax), adjusted net income was $63 million ($0.71 per share).
Key 2024 highlights include announced transactions with T-Mobile and spectrum deals with various operators, improved postpaid and prepaid churn, 27% growth in fixed wireless customers, and increased cash flows. The company repurchased 939,999 Common Shares for $55 million during 2024.
UScellular (NYSE: USM) ha riportato ricavi operativi per il quarto trimestre del 2024 pari a 970 milioni di dollari, in calo rispetto ai 1.000 milioni di dollari del quarto trimestre del 2023. Il reddito netto per il quarto trimestre del 2024 è stato di 5 milioni di dollari (0,05 dollari per azione), rispetto ai 14 milioni di dollari (0,16 dollari per azione) del quarto trimestre del 2023.
Per l'intero anno 2024, i ricavi operativi totali sono stati di 3.770 milioni di dollari, in calo rispetto ai 3.906 milioni di dollari del 2023. L'azienda ha registrato una perdita netta di 39 milioni di dollari (-0,46 dollari per azione) per il 2024, rispetto a un reddito netto di 54 milioni di dollari (0,63 dollari per azione) nel 2023. Escludendo un impairment di licenza nel terzo trimestre del 2024 di 136 milioni di dollari (102 milioni di dollari dopo le tasse), il reddito netto rettificato è stato di 63 milioni di dollari (0,71 dollari per azione).
I punti salienti del 2024 includono transazioni annunciate con T-Mobile e accordi di spettro con vari operatori, un miglioramento del churn postpagato e prepagato, una crescita del 27% nella clientela wireless fissa e un aumento dei flussi di cassa. L'azienda ha riacquistato 939.999 azioni comuni per 55 milioni di dollari durante il 2024.
UScellular (NYSE: USM) reportó ingresos operativos en el cuarto trimestre de 2024 de 970 millones de dólares, una disminución con respecto a los 1,000 millones de dólares en el cuarto trimestre de 2023. La utilidad neta en el cuarto trimestre de 2024 fue de 5 millones de dólares (0.05 dólares por acción), en comparación con 14 millones de dólares (0.16 dólares por acción) en el cuarto trimestre de 2023.
Para el año completo 2024, los ingresos operativos totales fueron de 3,770 millones de dólares, por debajo de los 3,906 millones de dólares en 2023. La compañía reportó una pérdida neta de 39 millones de dólares (-0.46 dólares por acción) para 2024, en comparación con una utilidad neta de 54 millones de dólares (0.63 dólares por acción) en 2023. Excluyendo una disminución de licencia en el tercer trimestre de 2024 de 136 millones de dólares (102 millones de dólares después de impuestos), la utilidad neta ajustada fue de 63 millones de dólares (0.71 dólares por acción).
Los aspectos destacados de 2024 incluyen transacciones anunciadas con T-Mobile y acuerdos de espectro con varios operadores, una mejora en la rotación de clientes postpago y prepago, un crecimiento del 27% en clientes de internet fijo y un aumento en los flujos de efectivo. La compañía recompró 939,999 acciones comunes por 55 millones de dólares durante 2024.
UScellular (NYSE: USM)는 2024년 4분기 운영 수익이 9억 7천만 달러로, 2023년 4분기의 10억 달러에서 감소했다고 보고했습니다. 2024년 4분기 순이익은 500만 달러(주당 0.05달러)로, 2023년 4분기의 1,400만 달러(주당 0.16달러)와 비교됩니다.
2024년 전체 연도에 대한 총 운영 수익은 37억 7천만 달러로, 2023년의 39억 6천만 달러에서 감소했습니다. 회사는 2024년에 3천9백만 달러(-주당 0.46달러)의 순손실을 보고했으며, 이는 2023년의 5천4백만 달러(주당 0.63달러)의 순이익과 비교됩니다. 2024년 3분기 라이센스 손상 1억 3천6백만 달러(세후 1억 2천만 달러)를 제외하면, 조정된 순이익은 6천3백만 달러(주당 0.71달러)였습니다.
2024년의 주요 사항으로는 T-Mobile과의 거래 발표 및 여러 사업자와의 스펙트럼 거래, 후불 및 선불 고객 이탈 감소, 고정 무선 고객 27% 증가, 현금 흐름 증가가 포함됩니다. 회사는 2024년에 5천5백만 달러에 939,999주를 재매입했습니다.
UScellular (NYSE: USM) a annoncé des revenus d'exploitation pour le quatrième trimestre 2024 de 970 millions de dollars, en baisse par rapport à 1 000 millions de dollars au quatrième trimestre 2023. Le bénéfice net pour le quatrième trimestre 2024 s'élevait à 5 millions de dollars (0,05 dollar par action), comparé à 14 millions de dollars (0,16 dollar par action) au quatrième trimestre 2023.
Pour l'année entière 2024, les revenus d'exploitation totaux étaient de 3 770 millions de dollars, en baisse par rapport à 3 906 millions de dollars en 2023. L'entreprise a enregistré une perte nette de 39 millions de dollars (-0,46 dollar par action) pour 2024, par rapport à un bénéfice net de 54 millions de dollars (0,63 dollar par action) en 2023. En excluant une dépréciation de licence au troisième trimestre 2024 de 136 millions de dollars (102 millions de dollars après impôts), le bénéfice net ajusté était de 63 millions de dollars (0,71 dollar par action).
Les points saillants de 2024 comprennent des transactions annoncées avec T-Mobile et des accords de spectre avec divers opérateurs, une amélioration du taux de désabonnement des clients postpayés et prépayés, une croissance de 27 % des clients de la téléphonie fixe sans fil et une augmentation des flux de trésorerie. L'entreprise a racheté 939 999 actions ordinaires pour 55 millions de dollars en 2024.
UScellular (NYSE: USM) berichtete für das vierte Quartal 2024 von Betriebseinnahmen in Höhe von 970 Millionen Dollar, ein Rückgang von 1.000 Millionen Dollar im vierten Quartal 2023. Der Nettogewinn im vierten Quartal 2024 betrug 5 Millionen Dollar (0,05 Dollar pro Aktie), verglichen mit 14 Millionen Dollar (0,16 Dollar pro Aktie) im vierten Quartal 2023.
Für das gesamte Jahr 2024 beliefen sich die Betriebseinnahmen auf 3.770 Millionen Dollar, was einem Rückgang von 3.906 Millionen Dollar im Jahr 2023 entspricht. Das Unternehmen berichtete für 2024 von einem Nettoverlust von 39 Millionen Dollar (-0,46 Dollar pro Aktie), verglichen mit einem Nettogewinn von 54 Millionen Dollar (0,63 Dollar pro Aktie) im Jahr 2023. Ohne die Lizenzabschreibung im dritten Quartal 2024 in Höhe von 136 Millionen Dollar (102 Millionen Dollar nach Steuern) betrug der bereinigte Nettogewinn 63 Millionen Dollar (0,71 Dollar pro Aktie).
Zu den wichtigsten Höhepunkten des Jahres 2024 gehören angekündigte Transaktionen mit T-Mobile und Spektrumverträge mit verschiedenen Betreibern, eine Verbesserung der Abwanderung bei Postpaid- und Prepaid-Kunden, ein Wachstum von 27 % bei Festnetz-Wireless-Kunden und ein Anstieg der Cashflows. Das Unternehmen hat im Jahr 2024 939.999 Stammaktien für 55 Millionen Dollar zurückgekauft.
- Fixed wireless customers grew 27% year-over-year
- Improved postpaid and prepaid churn metrics
- Increased cash flows from operations and free cash flow
- Stock buyback of $55 million executed in 2024
- Strategic sale to T-Mobile expected to close mid-2025
- Q4 2024 revenue declined 3% to $970M from $1,000M year-over-year
- Q4 2024 net income decreased 64% to $5M from $14M year-over-year
- Full-year 2024 revenue dropped 3.5% to $3,770M from $3,906M
- Reported net loss of $39M in 2024 compared to $54M profit in 2023
- $136M license impairment charge in Q3 2024
Insights
The Q4 2024 results paint a complex picture of UScellular's strategic transformation. While headline numbers show pressure with quarterly revenues down
The reported full-year loss of
The company's aggressive capital return program, evidenced by the repurchase of 939,999 shares for
The multiple spectrum transactions with T-Mobile, Verizon, AT&T, and regional operators represent a comprehensive portfolio optimization strategy. These deals, expected to close in mid-2025, signal a major industry consolidation move that could reshape the competitive landscape in regional wireless markets. The decision not to provide 2025 guidance is prudent given the transformative nature of these pending transactions.
As previously announced, UScellular will hold a teleconference on February 21, 2025 at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.uscellular.com.
UScellular reported total operating revenues of
Net income attributable to UScellular shareholders excluding a third quarter 2024 license impairment (non-GAAP) of
Full-year 2024 Highlights*
- Announced multiple transactions related to the strategic alternatives review
- Transaction with T-Mobile and four spectrum transactions with various mobile network operators
- Improved wireless operating results
- Postpaid and prepaid net losses improved
- Postpaid and prepaid churn improved
- Fixed wireless customers grew
27%
- Cash flows from operating activities and free cash flow up year over year
- Ongoing 5G mid-band network deployment — providing additional capacity and faster speeds for our customers
*Comparisons are Year Ended December 31, 2024 to Year Ended December 31, 2023
"In 2024, UScellular made significant progress in enhancing shareholder value, while remaining steadfast in its mission of connecting people to what matters most," said Laurent Therivel, UScellular President and CEO. "We also maintained strong financial discipline resulting in solid growth in profitability and free cash flow.
"While subscriber results remained negative, we saw meaningful improvement in postpaid and prepaid additions in the third and fourth quarters of 2024. We intend to build on this momentum and will continue to invest in our customers and our network while working towards closing the transactions that we have previously announced."
Announced Transactions
On May 24, 2024, Telephone and Data Systems, Inc. (TDS) and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile). The transaction is expected to close in mid-2025, subject to regulatory approval and the satisfaction of customary closing conditions.
On October 17, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, UScellular also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses.
On November 6, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close.
Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance.
Stock Repurchase
During 2024, UScellular repurchased 939,999 of its Common Shares for
Conference Call Information
UScellular will hold a conference call on February 21, 2025 at 9:00 a.m. Central Time.
- Access the live call on the Events & Presentations page of investors.uscellular.com or at https://events.q4inc.com/attendee/548841993
- Access the call by phone at (888) 330-2384 (US/
Canada ), conference ID: 1328528
Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.uscellular.com. The call will be archived on the Events & Presentations page of investors.uscellular.com.
About UScellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.4 million retail connections in 21 states. The
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed or whether UScellular will be able to find buyers at mutually agreeable prices for its remaining spectrum assets; whether any such strategic alternative will result in additional value for UScellular and its shareholders and whether the process will have an adverse impact on UScellular's business; if the announced transactions are not successfully completed there may be substantial changes in which the wireless business is conducted; if the announced transactions are successfully completed, substantial costs will be triggered and changes required in the manner in which UScellular's remaining business is conducted; strategic decisions regarding the tower business; intense competition; the ability to attract people of outstanding talent throughout all levels of the organization; UScellular's lack of scale relative to larger competitors; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms and changes in roaming practices; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of UScellular's businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which UScellular does business; uncertainties in UScellular's future cash flows and liquidity and access to the capital markets; the ability to make payments on UScellular indebtedness or comply with the terms of debt covenants; conditions in the
United States Cellular Corporation | |||||||||
As of or for the Quarter Ended | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | ||||
Retail Connections | |||||||||
Postpaid | |||||||||
Total at end of period1 | 3,985,000 | 3,999,000 | 4,027,000 | 4,051,000 | 4,106,000 | ||||
Gross additions | 140,000 | 123,000 | 117,000 | 106,000 | 129,000 | ||||
Handsets | 93,000 | 84,000 | 73,000 | 63,000 | 80,000 | ||||
Connected devices | 47,000 | 39,000 | 44,000 | 43,000 | 49,000 | ||||
Net additions (losses)1 | (14,000) | (28,000) | (24,000) | (44,000) | (50,000) | ||||
Handsets | (19,000) | (28,000) | (29,000) | (47,000) | (53,000) | ||||
Connected devices | 5,000 | — | 5,000 | 3,000 | 3,000 | ||||
ARPU2 | $ 51.73 | $ 52.04 | $ 51.45 | $ 51.96 | $ 51.61 | ||||
ARPA3 | $ 131.10 | $ 131.81 | $ 130.41 | $ 132.00 | $ 131.63 | ||||
Handset upgrade rate4 | 4.8 % | 3.5 % | 4.1 % | 4.5 % | 5.8 % | ||||
Churn rate5 | 1.29 % | 1.25 % | 1.16 % | 1.22 % | 1.44 % | ||||
Handsets | 1.08 % | 1.07 % | 0.97 % | 1.03 % | 1.22 % | ||||
Connected devices | 2.67 % | 2.47 % | 2.47 % | 2.52 % | 3.03 % | ||||
Prepaid | |||||||||
Total at end of period1 | 448,000 | 452,000 | 439,000 | 436,000 | 451,000 | ||||
Gross additions | 46,000 | 57,000 | 50,000 | 41,000 | 43,000 | ||||
Net additions (losses)1 | (4,000) | 13,000 | 3,000 | (13,000) | (11,000) | ||||
ARPU2, 6 | $ 30.59 | $ 32.01 | $ 32.37 | $ 32.25 | $ 32.32 | ||||
Churn rate5 | 3.70 % | 3.30 % | 3.60 % | 4.06 % | 3.87 % | ||||
Market penetration at end of period | |||||||||
Consolidated operating population | 32,550,000 | 32,550,000 | 32,550,000 | 32,550,000 | 32,350,000 | ||||
Consolidated operating penetration7 | 15 % | 15 % | 15 % | 14 % | 15 % | ||||
Capital expenditures (millions) | $ 162 | $ 120 | $ 165 | $ 131 | $ 148 | ||||
Total cell sites in service | 7,010 | 7,007 | 6,990 | 6,995 | 7,000 | ||||
Owned towers | 4,409 | 4,407 | 4,388 | 4,382 | 4,373 | ||||
Number of colocations8 | 2,444 | 2,418 | 2,392 | 2,397 | 2,390 | ||||
Tower tenancy rate9 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | ||||
Due to rounding, the sum of quarterly results may not equal the total for the year. | |
1 | First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. |
2 | Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of
|
3 | Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period. |
4 | Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections. |
5 | Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period. |
6 | Fourth quarter 2023 Prepaid ARPU excludes a |
7 | Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets. |
8 | Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower. |
9 | Average number of tenants that lease space on company-owned towers, measured on a per-tower basis. |
United States Cellular Corporation | |||||||||||
Consolidated Statement of Operations Highlights | |||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2024 | 2023 | 2024 vs. | 2024 | 2023 | 2024 vs. | ||||||
(Dollars and shares in millions, except per share amounts) | |||||||||||
Operating revenues | |||||||||||
Service | $ 742 | $ 755 | (2) % | $ 2,987 | $ 3,044 | (2) % | |||||
Equipment sales | 228 | 245 | (7) % | 783 | 862 | (9) % | |||||
Total operating revenues | 970 | 1,000 | (3) % | 3,770 | 3,906 | (3) % | |||||
Operating expenses | |||||||||||
System operations (excluding Depreciation, amortization and | 182 | 183 | (1) % | 724 | 740 | (2) % | |||||
Cost of equipment sold | 276 | 280 | (1) % | 906 | 988 | (8) % | |||||
Selling, general and administrative | 353 | 349 | 1 % | 1,330 | 1,368 | (3) % | |||||
Depreciation, amortization and accretion | 165 | 166 | — | 665 | 656 | 1 % | |||||
Loss on impairment of licenses | — | — | — | 136 | — | N/M | |||||
(Gain) loss on asset disposals, net | 4 | 3 | 3 % | 18 | 17 | 3 % | |||||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 59 % | 3 | (2) | N/M | |||||
Total operating expenses | 979 | 979 | — | 3,782 | 3,767 | — | |||||
Operating income (loss) | (9) | 21 | N/M | (12) | 139 | N/M | |||||
Investment and other income (expense) | |||||||||||
Equity in earnings of unconsolidated entities | 38 | 37 | 3 % | 161 | 158 | 2 % | |||||
Interest and dividend income | 3 | 2 | 29 % | 12 | 10 | 19 % | |||||
Interest expense | (46) | (49) | 8 % | (183) | (196) | 7 % | |||||
Total investment and other income (expense) | (5) | (10) | 53 % | (10) | (28) | 63 % | |||||
Income (loss) before income taxes | (14) | 11 | N/M | (22) | 111 | N/M | |||||
Income tax expense (benefit) | (19) | (4) | N/M | 10 | 53 | (82) % | |||||
Net income (loss) | 5 | 15 | (66) % | (32) | 58 | N/M | |||||
Less: Net income attributable to noncontrolling interests, net of tax | — | 1 | 86 % | 7 | 4 | N/M | |||||
Net income (loss) attributable to UScellular shareholders | $ 5 | $ 14 | (68) % | $ (39) | $ 54 | N/M | |||||
Basic weighted average shares outstanding | 85 | 85 | — | 86 | 85 | 1 % | |||||
Basic earnings (loss) per share attributable to UScellular | $ 0.05 | $ 0.17 | (68) % | $ (0.46) | $ 0.64 | N/M | |||||
Diluted weighted average shares outstanding | 88 | 88 | 1 % | 86 | 87 | (1) % | |||||
Diluted earnings (loss) per share attributable to UScellular | $ 0.05 | $ 0.16 | (69) % | $ (0.46) | $ 0.63 | N/M | |||||
N/M - Percentage change not meaningful |
United States Cellular Corporation | |||
Consolidated Statement of Cash Flows | |||
(Unaudited) | |||
Year Ended December 31, | 2024 | 2023 | |
(Dollars in millions) | |||
Cash flows from operating activities | |||
Net income (loss) | $ (32) | $ 58 | |
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating | |||
Depreciation, amortization and accretion | 665 | 656 | |
Bad debts expense | 97 | 104 | |
Stock-based compensation expense | 55 | 23 | |
Deferred income taxes, net | (27) | 47 | |
Equity in earnings of unconsolidated entities | (161) | (158) | |
Distributions from unconsolidated entities | 169 | 150 | |
Loss on impairment of licenses | 136 | — | |
(Gain) loss on asset disposals, net | 18 | 17 | |
(Gain) loss on license sales and exchanges, net | 3 | (2) | |
Other operating activities | 5 | 6 | |
Changes in assets and liabilities from operations | |||
Accounts receivable | (11) | 17 | |
Equipment installment plans receivable | (37) | (20) | |
Inventory | 21 | 62 | |
Accounts payable | (19) | (85) | |
Customer deposits and deferred revenues | 9 | (9) | |
Accrued taxes | (4) | — | |
Other assets and liabilities | (4) | — | |
Net cash provided by operating activities | 883 | 866 | |
Cash flows from investing activities | |||
Cash paid for additions to property, plant and equipment | (537) | (608) | |
Cash paid for licenses | (20) | (130) | |
Other investing activities | 1 | 17 | |
Net cash used in investing activities | (556) | (721) | |
Cash flows from financing activities | |||
Issuance of long-term debt | 40 | 315 | |
Repayment of long-term debt | (248) | (453) | |
Repayment of short-term debt | — | (60) | |
Common Shares reissued for stock-based compensation awards, net of tax payments | (11) | (6) | |
Repurchase of Common Shares | (54) | — | |
Payment of debt issuance costs | — | (1) | |
Distributions to noncontrolling interests | (5) | (3) | |
Cash paid for software license agreements | (66) | (66) | |
Other financing activities | (3) | — | |
Net cash used in financing activities | (347) | (274) | |
Net decrease in cash, cash equivalents and restricted cash | (20) | (129) | |
Cash, cash equivalents and restricted cash | |||
Beginning of period | 179 | 308 | |
End of period | $ 159 | $ 179 | |
United States Cellular Corporation | |||
Consolidated Balance Sheet Highlights | |||
(Unaudited) | |||
ASSETS | |||
December 31, | 2024 | 2023 | |
(Dollars in millions) | |||
Current assets | |||
Cash and cash equivalents | $ 144 | $ 150 | |
Accounts receivable, net | 955 | 957 | |
Inventory, net | 179 | 199 | |
Prepaid expenses | 46 | 57 | |
Income taxes receivable | — | 1 | |
Other current assets | 21 | 36 | |
Total current assets | 1,345 | 1,400 | |
Assets held for sale | — | 15 | |
Licenses | 4,579 | 4,693 | |
Investments in unconsolidated entities | 454 | 461 | |
Property, plant and equipment, net | 2,502 | 2,576 | |
Operating lease right-of-use assets | 926 | 915 | |
Other assets and deferred charges | 643 | 690 | |
Total assets | $ 10,449 | $ 10,750 | |
United States Cellular Corporation | |||
Consolidated Balance Sheet Highlights | |||
(Unaudited) | |||
LIABILITIES AND EQUITY | |||
December 31, | 2024 | 2023 | |
(Dollars in millions, except per share amounts) | |||
Current liabilities | |||
Current portion of long-term debt | $ 22 | $ 20 | |
Accounts payable | 242 | 248 | |
Customer deposits and deferred revenues | 238 | 229 | |
Accrued taxes | 30 | 32 | |
Accrued compensation | 93 | 83 | |
Short-term operating lease liabilities | 141 | 135 | |
Other current liabilities | 118 | 154 | |
Total current liabilities | 884 | 901 | |
Deferred liabilities and credits | |||
Deferred income tax liability, net | 728 | 755 | |
Long-term operating lease liabilities | 822 | 831 | |
Other deferred liabilities and credits | 570 | 565 | |
Long-term debt, net | 2,837 | 3,044 | |
Noncontrolling interests with redemption features | 16 | 12 | |
Equity | |||
UScellular shareholders' equity | |||
Series A Common and Common Shares, par value | 88 | 88 | |
Additional paid-in capital | 1,783 | 1,726 | |
Treasury shares | (112) | (80) | |
Retained earnings | 2,818 | 2,892 | |
Total UScellular shareholders' equity | 4,577 | 4,626 | |
Noncontrolling interests | 15 | 16 | |
Total equity | 4,592 | 4,642 | |
Total liabilities and equity | $ 10,449 | $ 10,750 | |
United States Cellular Corporation | |||||||||||
Segment Results | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended December 31, | Year Ended | ||||||||||
UScellular | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 vs. 2023 | |||||
(Dollars in millions) | |||||||||||
Operating Revenues | |||||||||||
Wireless | $ 944 | $ 975 | (3) % | $ 3,667 | $ 3,805 | (4) % | |||||
Towers | 59 | 57 | 3 % | 234 | 228 | 3 % | |||||
Intra-company eliminations | (33) | (32) | (3) % | (131) | (127) | (3) % | |||||
Total operating revenues | 970 | 1,000 | (3) % | 3,770 | 3,906 | (3) % | |||||
Operating expenses | |||||||||||
Wireless | 971 | 975 | — | 3,757 | 3,743 | — | |||||
Towers | 41 | 36 | 12 % | 156 | 151 | 3 % | |||||
Intra-company eliminations | (33) | (32) | (3) % | (131) | (127) | (3) % | |||||
Total operating expenses | 979 | 979 | — | 3,782 | 3,767 | — | |||||
Operating income (loss) | $ (9) | $ 21 | N/M | $ (12) | $ 139 | N/M | |||||
Adjusted OIBDA (Non-GAAP) | $ 167 | $ 194 | (14) % | $ 845 | $ 818 | 3 % | |||||
Adjusted EBITDA (Non-GAAP) | $ 208 | $ 233 | (11) % | $ 1,018 | $ 986 | 3 % | |||||
Capital expenditures | $ 162 | $ 148 | 9 % | $ 577 | $ 611 | (6) % | |||||
N/M - Percentage change not meaningful |
United States Cellular Corporation | |||||||||||
Segment Results | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended December 31, | Year Ended | ||||||||||
UScellular Wireless | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 vs. 2023 | |||||
(Dollars in millions) | |||||||||||
Retail service | $ 661 | $ 678 | (3) % | $ 2,674 | $ 2,742 | (2) % | |||||
Other | 55 | 52 | 7 % | 210 | 201 | 5 % | |||||
Service revenues | 716 | 730 | (2) % | 2,884 | 2,943 | (2) % | |||||
Equipment sales | 228 | 245 | (7) % | 783 | 862 | (9) % | |||||
Total operating revenues | 944 | 975 | (3) % | 3,667 | 3,805 | (4) % | |||||
System operations (excluding Depreciation, amortization and accretion | 195 | 197 | (1) % | 777 | 794 | (2) % | |||||
Cost of equipment sold | 276 | 280 | (1) % | 906 | 988 | (8) % | |||||
Selling, general and administrative | 344 | 340 | 1 % | 1,298 | 1,334 | (3) % | |||||
Depreciation, amortization and accretion | 153 | 155 | — | 620 | 610 | 1 % | |||||
Loss on impairment of licenses | — | — | — | 136 | — | N/M | |||||
(Gain) loss on asset disposals, net | 4 | 5 | (37) % | 17 | 19 | (11) % | |||||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 59 % | 3 | (2) | N/M | |||||
Total operating expenses | 971 | 975 | — | 3,757 | 3,743 | — | |||||
Operating income (loss) | $ (27) | $ — | N/M | $ (90) | $ 62 | N/M | |||||
Adjusted OIBDA (Non-GAAP) | $ 137 | $ 164 | (16) % | $ 719 | $ 697 | 3 % | |||||
Adjusted EBITDA (Non-GAAP) | $ 137 | $ 164 | (16) % | $ 719 | $ 697 | 3 % | |||||
Capital expenditures | $ 154 | $ 127 | 21 % | $ 554 | $ 580 | (5) % | |||||
Three Months Ended December 31, | Year Ended | ||||||||||
UScellular Towers | 2024 | 2023 | 2024 | 2024 | 2023 | 2024 vs. 2023 | |||||
(Dollars in millions) | |||||||||||
Third-party revenues | $ 26 | $ 25 | 4 % | $ 103 | $ 101 | 2 % | |||||
Intra-company revenues | 33 | 32 | 3 % | 131 | 127 | 3 % | |||||
Total tower revenues | 59 | 57 | 3 % | 234 | 228 | 3 % | |||||
System operations (excluding Depreciation, amortization and accretion | 20 | 18 | 11 % | 78 | 73 | 6 % | |||||
Selling, general and administrative | 9 | 9 | 2 % | 32 | 34 | (5) % | |||||
Depreciation, amortization and accretion | 12 | 11 | — | 45 | 46 | (1) % | |||||
(Gain) loss on asset disposals, net | — | (2) | N/M | 1 | (2) | N/M | |||||
Total operating expenses | 41 | 36 | 12 % | 156 | 151 | 3 % | |||||
Operating income | $ 18 | $ 21 | (11) % | $ 78 | $ 77 | 2 % | |||||
Adjusted OIBDA (Non-GAAP) | $ 30 | $ 30 | — | $ 126 | $ 121 | 4 % | |||||
Adjusted EBITDA (Non-GAAP) | $ 30 | $ 30 | — | $ 126 | $ 121 | 4 % | |||||
Capital expenditures | $ 8 | $ 21 | (62) % | $ 23 | $ 31 | (24) % | |||||
N/M - Percentage change not meaningful |
United States Cellular Corporation | |||||||
Financial Measures | |||||||
(Unaudited) | |||||||
Free Cash Flow | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
Cash flows from operating activities (GAAP) | $ 121 | $ 148 | $ 883 | $ 866 | |||
Cash paid for additions to property, plant and equipment | (139) | (155) | (537) | (608) | |||
Cash paid for software license agreements | (35) | (37) | (66) | (66) | |||
Free cash flow (Non-GAAP)1 | $ (53) | $ (44) | $ 280 | $ 192 | |||
1 | Free cash flow is a non-GAAP financial measure which UScellular believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements. |
Licenses impairment, net of tax | |
The following non-GAAP financial measure isolates the total effects on net income of the Loss on impairment of licenses, including tax impacts. UScellular believes this measure may be useful to investors and other users of its financial information to assist in comparing financial results with periods that were not impacted by impairment charges. |
Three Months Ended December 31, | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Dollars in millions) | |||||||
Net income (loss) attributable to UScellular shareholders | $ 5 | $ 14 | $ (39) | $ 54 | |||
Adjustments: | |||||||
Loss on impairment of licenses | — | — | 136 | — | |||
Deferred tax benefit on the tax-amortizable portion of the | — | — | (34) | — | |||
Subtotal of Non-GAAP adjustments | — | — | 102 | — | |||
Net income attributable to UScellular shareholders excluding | $ 5 | $ 14 | $ 63 | $ 54 | |||
Diluted weighted average shares outstanding used for diluted | 88 | 88 | 86 | 87 | |||
Diluted weighted average shares outstanding used for diluted | 88 | 88 | 88 | 87 | |||
Diluted earnings (loss) per share attributable to UScellular | $ 0.05 | $ 0.16 | $ (0.46) | $ 0.63 | |||
Adjustments: | |||||||
Loss on impairment of licenses | — | — | 1.55 | — | |||
Deferred tax benefit on the tax-amortizable portion of the | — | — | (0.38) | — | |||
Diluted earnings per share attributable to UScellular shareholders | $ 0.05 | $ 0.16 | $ 0.71 | $ 0.63 | |||
United States Cellular Corporation | |
EBITDA, Adjusted EBITDA and Adjusted OIBDA | |
(Unaudited) | |
The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) and Income (loss) before income taxes. Income and expense items below Operating income (loss) are not provided at the individual segment level for Wireless and Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income (loss) rather than Net income (loss) at the segment level. |
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
Net income (loss) (GAAP) | $ 5 | $ 15 | $ (32) | $ 58 | |||
Add back or deduct: | |||||||
Income tax expense (benefit) | (19) | (4) | 10 | 53 | |||
Income (loss) before income taxes (GAAP) | (14) | 11 | (22) | 111 | |||
Add back: | |||||||
Interest expense | 46 | 49 | 183 | 196 | |||
Depreciation, amortization and accretion | 165 | 166 | 665 | 656 | |||
EBITDA (Non-GAAP) | 197 | 226 | 826 | 963 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | 8 | 6 | 35 | 8 | |||
Loss on impairment of licenses | — | — | 136 | — | |||
(Gain) loss on asset disposals, net | 4 | 3 | 18 | 17 | |||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 3 | (2) | |||
Adjusted EBITDA (Non-GAAP) | 208 | 233 | 1,018 | 986 | |||
Deduct: | |||||||
Equity in earnings of unconsolidated entities | 38 | 37 | 161 | 158 | |||
Interest and dividend income | 3 | 2 | 12 | 10 | |||
Adjusted OIBDA (Non-GAAP) | $ 167 | $ 194 | $ 845 | $ 818 | |||
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular Wireless | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
EBITDA (Non-GAAP) | $ 126 | $ 155 | $ 530 | $ 672 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | 8 | 6 | 33 | 8 | |||
Loss on impairment of licenses | — | — | 136 | — | |||
(Gain) loss on asset disposals, net | 4 | 5 | 17 | 19 | |||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 3 | (2) | |||
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) | 137 | 164 | 719 | 697 | |||
Deduct: | |||||||
Depreciation, amortization and accretion | 153 | 155 | 620 | 610 | |||
Expenses related to strategic alternatives review | 8 | 6 | 33 | 8 | |||
Loss on impairment of licenses | — | — | 136 | — | |||
(Gain) loss on asset disposals, net | 4 | 5 | 17 | 19 | |||
(Gain) loss on license sales and exchanges, net | (1) | (2) | 3 | (2) | |||
Operating income (loss) (GAAP) | $ (27) | $ — | $ (90) | $ 62 | |||
Three Months Ended December 31, | Year Ended December 31, | ||||||
UScellular Towers | 2024 | 2023 | 2024 | 2023 | |||
(Dollars in millions) | |||||||
EBITDA (Non-GAAP) | $ 30 | $ 32 | $ 123 | $ 123 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | — | — | 2 | — | |||
(Gain) loss on asset disposals, net | — | (2) | 1 | (2) | |||
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) | 30 | 30 | 126 | 121 | |||
Deduct: | |||||||
Depreciation, amortization and accretion | 12 | 11 | 45 | 46 | |||
Expenses related to strategic alternatives review | — | — | 2 | — | |||
(Gain) loss on asset disposals, net | — | (2) | 1 | (2) | |||
Operating income (GAAP) | $ 18 | $ 21 | $ 78 | $ 77 | |||
View original content:https://www.prnewswire.com/news-releases/uscellular-reports-fourth-quarter-and-full-year-2024-results-302381934.html
SOURCE United States Cellular Corporation
FAQ
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