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Jane McCahon

Senior Vice President - Corporate Relations

Phone: 312.592.5379
jane.mccahon@tdsinc.com
Full Contact Info

TDS reports third quarter 2019 results

10/31/2019
Network enhancements a primary strategic focus

CHICAGO, Oct. 31, 2019 /PRNewswire/ --

As previously announced, TDS will hold a teleconference November 1, 2019, at 9:00 a.m. CDT. 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 $1,321 million for the third quarter of 2019, versus $1,297 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $18 million and $0.15, respectively, for the third quarter of 2019 compared to $46 million and $0.41, respectively, in the same period one year ago.

"Our results for the third quarter reflect the investments we are making throughout the TDS Family of Companies," said LeRoy T. Carlson, Jr., TDS President and CEO. "U.S. Cellular is continuing to make improvements to its high-performing network and TDS Telecom is making progress deploying fiber in its new out-of-territory fiber markets.

"At U.S. Cellular subscriber activity built momentum throughout the quarter. Higher inbound roaming revenue and increased postpaid average revenue per user (ARPU) drove revenue growth. U.S. Cellular is progressing with network modernization. U.S. Cellular is readying its network for 5G and many customers with 4G devices are experiencing better network quality and improved speeds. U.S. Cellular is on track to launch 5G service in Iowa and Wisconsin during the first quarter of 2020.

"At TDS Telecom, customer demand for faster broadband speeds and for video connections generated higher residential revenue per connection. The Wireline segment saw growth in revenues from fiber investments which helped offset declines in legacy voice revenue. Wireline continued to expand fiber even deeper into its ILEC markets while also expanding its fiber footprint to attractive out-of-territory markets. Cable operations produced another strong quarter, generating 8% growth in revenues through increased broadband connections, which contributed to a 14% year-over-year increase in Adjusted EBITDA."

2019 Estimated Results

TDS' current estimates of full-year 2019 results for U.S. Cellular, TDS Telecom, and TDS are shown below. Such estimates represent management's view as of October 31, 2019 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.


2019 Estimated Results


U.S. Cellular


TDS Telecom


TDS1


Previous

Current


Previous

Current


Previous

Current

(Dollars in millions)









Total operating revenues

$3,900-$4,100

$3,950-$4,050


$900-$950

Unchanged


$5,025-$5,275

$5,075-$5,225

Adjusted OIBDA2

$725-$875

$750-$850


$280-$310

Unchanged


$1,000-$1,180

$1,025-$1,155

Adjusted EBITDA2

$900-$1,050

$925-$1,025


$290-$320

Unchanged


$1,185-$1,365

$1,210-$1,340

Capital expenditures

$625-$725

Unchanged


$300-$350

Unchanged


$940-$1,090

Unchanged

The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2019 estimated results, actual results for the nine months ended September 30, 2019, and actual results for the year ended December 31, 2018. In providing 2019 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.


2019 Estimated Results


U.S. Cellular


TDS Telecom


TDS1

(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)

$80-$180


$85-$115


$70-$200

Add back:






Interest expense

115x



175

Depreciation, amortization and accretion expense

710


205


945

EBITDA (Non-GAAP)2

$905-$1,005


$290-$320


$1,190-$1,320

Add back or deduct:






(Gain) loss on asset disposals, net

20



20

Adjusted EBITDA (Non-GAAP)2

$925-$1,025


$290-$320


$1,210-$1,340

Deduct:






Equity in earnings of unconsolidated entities

160



160

Interest and dividend income

15


10


25

Adjusted OIBDA (Non-GAAP)2

$750-$850


$280-$310


$1,025-$1,155

 


Actual Results


Nine Months Ended
September 30, 2019


Year Ended
December 31, 2018


U.S.

Cellular


TDS

Telecom


TDS1


U.S.

Cellular


TDS

Telecom


TDS1

(Dollars in millions)












Net income (GAAP)

$

115



$

74



$

132



$

164



$

89



$

175


Add back or deduct:












Income tax expense

55



23



64



51



16



46


Income before income taxes (GAAP)

$

170



$

97



$

196



$

215



$

105



$

221


Add back:












Interest expense

87



(2)



128



116



(2)



172


Depreciation, amortization and accretion expense

524



150



697



640



212



883


EBITDA (Non-GAAP)2

$

781



$

245



$

1,021



$

971



$

315



$

1,276


Add back or deduct:












(Gain) loss on asset disposals, net

13



(7)



5



10



(2)



9


(Gain) loss on sale of business and other exit costs, net

(1)





(1)








(Gain) loss on license sales and exchanges, net







(18)





(18)


Adjusted EBITDA (Non-GAAP)2

$

793



$

238



$

1,025



$

963



$

313



$

1,267


Deduct:












Equity in earnings of unconsolidated entities

128





129



159





160


Interest and dividend income

14



9



24



15



8



26


Other, net







(1)



2



2


Adjusted OIBDA (Non-GAAP)2

$

651



$

228



$

872



$

790



$

303



$

1,079



Numbers may not foot due to rounding.


1

The TDS column includes U.S. Cellular, TDS Telecom and also the impacts of consolidating eliminations, corporate operations and non-reportable segments.



2

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 September 30, 2019, can be found on TDS' website at investors.tdsinc.com.

Conference Call Information

TDS will hold a conference call on November 1, 2019 at 9:00 a.m. Central Time.

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, U.S. Cellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,400 people as of September 30, 2019.

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 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

United States Cellular Corporation

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

9/30/2019


6/30/2019


3/31/2019


12/31/2018


9/30/2018

Retail Connections










Postpaid










Total at end of period

4,395,000



4,414,000



4,440,000



4,472,000



4,466,000


Gross additions

163,000



137,000



137,000



179,000



172,000


Feature phones

3,000



5,000



4,000



4,000



3,000


Smartphones

121,000



97,000



98,000



132,000



130,000


Connected devices

39,000



35,000



35,000



43,000



39,000


Net additions (losses)

(19,000)



(26,000)



(32,000)



6,000



(1,000)


Feature phones

(11,000)



(10,000)



(13,000)



(11,000)



(14,000)


Smartphones

9,000



(1,000)



(1,000)



31,000



29,000


Connected devices

(17,000)



(15,000)



(18,000)



(14,000)



(16,000)


ARPU1

$

46.16



$

45.90



$

45.44



$

45.58



$

45.31


ARPA2

$

119.87



$

119.46



$

118.84



$

119.60



$

119.42


Churn rate3

1.38

%


1.23

%


1.26

%


1.29

%


1.29

%

Handsets

1.09

%


0.97

%


0.99

%


1.00

%


1.02

%

Connected devices

3.44

%


3.01

%


3.08

%


3.20

%


3.04

%

Prepaid










Total at end of period

510,000



500,000



503,000



516,000



528,000


Gross additions

70,000



61,000



61,000



66,000



80,000


Net additions (losses)

9,000



(2,000)



(13,000)



(12,000)



1,000


ARPU1

$

34.35



$

34.43



$

33.44



$

32.80



$

32.09


Churn rate3

4.03

%


4.20

%


4.92

%


4.98

%


4.98

%

Total connections at end of period4

4,957,000



4,967,000



4,995,000



5,041,000



5,050,000


Market penetration at end of period










Consolidated operating population

31,310,000



31,310,000



31,310,000



31,469,000



31,469,000


Consolidated operating penetration5

16

%


16

%


16

%


16

%


16

%

Capital expenditures (millions)

$

170



$

195



$

102



$

242



$

118


Total cell sites in service

6,554



6,535



6,506



6,531



6,506


Owned towers

4,123



4,116



4,106



4,129



4,119




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 population of consolidated operating markets as estimated by Nielsen.

 

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

9/30/2019


6/30/2019


3/31/2019


12/31/2018


9/30/2018

TDS Telecom










Wireline










Residential connections










Voice1

266,100



269,000



271,100



274,100



278,400


Broadband2

242,200



240,200



236,100



235,400



237,100


Video3

57,300



56,200



54,300



54,000



53,100


Wireline residential connections

565,600



565,500



561,500



563,500



568,600












Total residential revenue per connection4

$

49.02



$

47.88



$

48.16



$

47.39



$

47.30












Commercial connections










Voice1

121,200



124,200



127,300



130,500



134,000


Broadband2

20,600



20,600



20,400



20,600



20,700


managedIP5

124,500



128,300



132,000



134,000



138,000


Video3

400



400



400



400



400


Wireline commercial connections

266,600



273,500



280,100



285,400



293,100












Total Wireline connections

832,300



839,000



841,500



848,900



861,700












Cable










Cable residential and commercial connections










Broadband6

174,900



172,600



171,100



167,400



163,600


Video7

98,000



100,300



101,400



102,900



102,100


Voice8

63,900



64,800



65,400



65,200



63,600


managedIP5

1,200



1,100



1,100



1,000



700


Total Cable connections

338,000



338,900



339,000



336,500



330,100



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

9/30/2019


6/30/2019


3/31/2019


12/31/2018


9/30/2018

(Dollars in millions)










Wireline

$

61



$

55



$

29



$

73



$

41


Cable

20



15



13



19



13


Total TDS Telecom

$

81



$

70



$

42



$

91



$

54



Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)






Three Months Ended
September 30,


Nine Months Ended
September 30,


2019


2018


2019

vs. 2018


2019


2018


2019

vs. 2018

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












Operating revenues












U.S. Cellular

$

1,031



$

1,001



3

%


$

2,970



$

2,916



2

%

TDS Telecom

231



234



(1)

%


695



695



All Other1

59



62



(4)

%


175



166



5

%


1,321



1,297



2

%


3,840



3,777



2

%

Operating expenses












U.S. Cellular












Expenses excluding depreciation, amortization and accretion

823



804



2

%


2,319



2,296



1

%

Depreciation, amortization and accretion

181



160



13

%


524



478



10

%

(Gain) loss on asset disposals, net

5



3



66

%


13



5



N/M


(Gain) loss on sale of business and other exit costs, net





N/M



(1)





N/M


(Gain) loss on license sales and exchanges, net

2





N/M





(18)



98

%


1,011



967



5

%


2,855



2,761



3

%

TDS Telecom












Expenses excluding depreciation, amortization and accretion

162



157



3

%


467



466



Depreciation, amortization and accretion

50



53



(6)

%


150



160



(6)

%

(Gain) loss on asset disposals, net



(3)



N/M



(7)



(2)



N/M



212



206



3

%


609



624



(2)

%

All Other1












Expenses excluding depreciation and amortization

62



65



(3)

%


182



176



3

%

Depreciation and amortization

6



7



(5)

%


23



24



(5)

%

(Gain) loss on asset disposals, net

1





N/M



(1)





N/M



69



73



(3)

%


205



200



2

%

Total operating expenses

1,292



1,246



4

%


3,669



3,585



2

%

Operating income (loss)












U.S. Cellular

20



34



(40)

%


115



155



(26)

%

TDS Telecom

20



28



(29)

%


86



71



21

%

All Other1

(11)



(11)



(5)

%


(30)



(34)



13

%


29



51



(43)

%


171



192



(11)

%

Investment and other income (expense)












Equity in earnings of unconsolidated entities

44



42



5

%


129



121



7

%

Interest and dividend income

7



6



15

%


24



18



39

%

Interest expense

(42)



(43)



1

%


(128)



(129)



1

%

Other, net



2



N/M





1



N/M


Total investment and other income

9



7



34

%


25



11



N/M


Income before income taxes

38



58



(35)

%


196



203



(3)

%

Income tax expense

15



5



N/M



64



48



32

%

Net income

23



53



(57)

%


132



155



(15)

%

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

5



7



(27)

%


22



36



(39)

%

Net income attributable to TDS shareholders

$

18



$

46



(62)

%


$

110



$

119



(7)

%













Basic weighted average shares outstanding

115



112



2

%


114



112



2

%

Basic earnings per share attributable to TDS shareholders

$

0.15



$

0.41



(63)

%


$

0.96



$

1.06



(9)

%













Diluted weighted average shares outstanding

116



114



2

%


116



113



2

%

Diluted earnings per share attributable to TDS shareholders

$

0.15



$

0.41



(63)

%


$

0.93



$

1.04



(10)

%


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 U.S. Cellular and TDS Telecom segments.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)



Nine Months Ended
September 30,


2019


2018

(Dollars in millions)




Cash flows from operating activities




Net income

$

132



$

155


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




Depreciation, amortization and accretion

697



662


Bad debts expense

80



71


Stock-based compensation expense

47



37


Deferred income taxes, net

23



31


Equity in earnings of unconsolidated entities

(129)



(121)


Distributions from unconsolidated entities

100



91


(Gain) loss on asset disposals, net

5



3


(Gain) loss on sale of business and other exit costs, net

(1)




(Gain) loss on license sales and exchanges, net



(18)


Other operating activities

4



3


Changes in assets and liabilities from operations




Accounts receivable

(42)



(5)


Equipment installment plans receivable

(42)



(88)


Inventory

3



13


Accounts payable

(4)



13


Customer deposits and deferred revenues

(2)



(7)


Accrued taxes

37



(3)


Accrued interest

9



11


Other assets and liabilities

(43)



(36)


Net cash provided by operating activities

874



812






Cash flows from investing activities




Cash paid for additions to property, plant and equipment

(631)



(447)


Cash paid for acquisitions and licenses

(257)



(10)


Cash received from investments

29



100


Cash paid for investments

(11)




Cash received from divestitures and exchanges

32



28


Other investing activities

1



4


Net cash used in investing activities

(837)



(325)






Cash flows from financing activities




Repayment of long-term debt

(16)



(15)


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

(6)



27


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

(8)



7


Repurchase of U.S. Cellular Common Shares

(21)




Dividends paid to TDS shareholders

(57)



(54)


Distributions to noncontrolling interests

(3)



(5)


Other financing activities

8



(2)


Net cash used in financing activities

(103)



(42)






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

(66)



445






Cash, cash equivalents and restricted cash




Beginning of period

927



622


End of period

$

861



$

1,067


 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


ASSETS






September 30, 2019 1


December 31, 2018

(Dollars in millions)




Current assets




Cash and cash equivalents

$

853



$

921


Short-term investments



17


Accounts receivable

1,116



1,099


Inventory, net

147



150


Prepaid expenses

98



103


Income taxes receivable

3



12


Other current assets

28



28


Total current assets

2,245



2,330






Assets held for sale

9



54






Licenses

2,470



2,195






Goodwill

509



509






Other intangible assets, net

235



253






Investments in unconsolidated entities

511



480






Property, plant and equipment, net

3,353



3,346






Operating lease right-of-use assets

970








Other assets and deferred charges

579



616






Total assets

$

10,881



$

9,783


 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


LIABILITIES AND EQUITY






September 30, 2019 1


December 31, 2018

(Dollars in millions, except per share amounts)




Current liabilities




Current portion of long-term debt

$

21



$

21


Accounts payable

386



365


Customer deposits and deferred revenues

195



197


Accrued interest

20



11


Accrued taxes

63



44


Accrued compensation

111



127


Short-term operating lease liabilities

115




Other current liabilities

90



114


Total current liabilities

1,001



879






Liabilities held for sale

1



1






Deferred liabilities and credits




Deferred income tax liability, net

664



640


Long-term operating lease liabilities

931




Other deferred liabilities and credits

475



541






Long-term debt, net

2,405



2,418






Noncontrolling interests with redemption features

11



11






Equity




TDS shareholders' equity




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

1



1


Capital in excess of par value

2,456



2,432


Treasury shares, at cost

(481)



(519)


Accumulated other comprehensive loss

(10)



(10)


Retained earnings

2,680



2,656


Total TDS shareholders' equity

4,646



4,560






Noncontrolling interests

747



733






Total equity

5,393



5,293






Total liabilities and equity

$

10,881



$

9,783




1

As of January 1, 2019, TDS adopted the new lease accounting standard, ASC 842, using a modified retrospective method. Under this method, the new accounting standard is applied only to the most recent period presented. As a result, 2019 amounts include the impacts of ASC 842, but 2018 amounts remain as previously reported.

 

Balance Sheet Highlights

(Unaudited)




September 30, 2019


U.S.


TDS


TDS
Corporate


Intercompany


TDS


Cellular


Telecom


& Other


Eliminations


Consolidated

(Dollars in millions)










Cash and cash equivalents

$

570



$

36



$

247



$



$

853


Affiliated cash investments



509





(509)





$

570



$

545



$

247



$

(509)



$

853












Licenses, goodwill and other intangible assets

$

2,461



$

741



$

12



$



$

3,214


Investment in unconsolidated entities

471



4



46



(10)



511



$

2,932



$

745



$

58



$

(10)



$

3,725












Property, plant and equipment, net

$

2,144



$

1,096



$

113



$



$

3,353












Long-term debt, net:










Current portion

$

19



$

1



$

1



$



$

21


Non-current portion

1,592



3



810





2,405



$

1,611



$

4



$

811



$



$

2,426


 

TDS Telecom Highlights

(Unaudited)














Three Months Ended
September 30,


Nine Months Ended
September 30,


2019


2018


2019 vs.
2018


2019


2018


2019 vs.
2018

(Dollars in millions)












Wireline












Operating revenues












Residential

$

83



$

81



3

%


$

245



$

241



2

%

Commercial

41



46



(9)

%


127



140



(9)

%

Wholesale

45



50



(11)

%


139



144



(3)

%

Total service revenues

169



176



(4)

%


512



524



(2)

%

Equipment and product sales





(19)

%


1



1



(25)

%


169



177



(4)

%


512



526



(3)

%

Operating expenses












Cost of services

68



68



(1)

%


195



200



(2)

%

Cost of equipment and products





(7)

%


1



1



(26)

%

Selling, general and administrative expenses

52



49



7

%


148



146



2

%

Expenses excluding depreciation, amortization and accretion

120



118



2

%


344



346



(1)

%

Depreciation, amortization and accretion

33



35



(8)

%


99



108



(8)

%

(Gain) loss on asset disposals, net



(4)



N/M



(8)



(3)



N/M



153



149



3

%


435



451



(4)

%

Operating income

$

16



$

28



(41)

%


$

78



$

75



4

%













Cable












Operating revenues












Residential

$

52



$

47



9

%


$

152



$

140



9

%

Commercial

10



10



1

%


32



30



6

%


62



58



8

%


184



170



8

%

Operating expenses












Cost of services

27



26



4

%


79



78



1

%

Selling, general and administrative expenses

15



14



6

%


44



42



6

%

Expenses excluding depreciation, amortization and accretion

42



40



5

%


124



120



3

%

Depreciation, amortization and accretion

17



17



(2)

%


51



52



(3)

%

(Gain) loss on asset disposals, net



1



(86)

%


1



1



(49)

%


59



58



2

%


175



174



1

%

Operating income (loss)

$

3



$



N/M



$

8



$

(4)



N/M














Total TDS Telecom operating income

$

20



$

28



(29)

%


$

86



$

71



21

%


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
September 30,


Nine Months Ended
September 30,


2019


2018


2019


2018

(Dollars in millions)








Cash flows from operating activities (GAAP)

$

282



$

349



$

874



$

812


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

238



171



631



447


Free cash flow (Non-GAAP)1

$

44



$

178



$

243



$

365




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.

EBITDA, Adjusted EBITDA and Adjusted OIBDA

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Income before income taxes and Operating income.


Three Months Ended
September 30,

CABLE

2019


2018

(Dollars in millions)




Income before income taxes (GAAP)

$

4



$


Add back:




Depreciation, amortization and accretion

17



17


EBITDA (Non-GAAP)

21



18


Add back or deduct:




(Gain) loss on asset disposals, net



1


Adjusted EBITDA (Non-GAAP)

21



18


Deduct:




Interest and dividend income




Adjusted OIBDA (Non-GAAP)

20



18


Deduct:




Depreciation, amortization and accretion

17



17


(Gain) loss on asset disposals, net



1


Operating income (GAAP)

$

3



$



Numbers may not foot due to rounding.

 

Cision View original content:http://www.prnewswire.com/news-releases/tds-reports-third-quarter-2019-results-300949431.html

SOURCE Telephone and Data Systems, Inc.

Copyright © 2017 Telephone and Data Systems, Inc. All Rights Reserved.

Stock Quote: NYSE

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Nov 15, 2019 04:02 PM

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