Provides financial guidance for 2011
CHICAGO, Feb. 24, 2011 /PRNewswire via COMTEX/ --
Note: Comparisons are year over year unless otherwise noted.
Fourth Quarter Highlights
Enterprise/TDS Corporate
- Operating revenues were $1.3 billion.
- Repurchased 610,277 special common shares for $17.5 million; $179 million remaining on current authorization.
Wireless/U.S. Cellular
- Service revenues were $992 million.
- Retail service ARPU (average revenue per unit) increased to $47.41 from $47.07.
- Net retail customer losses were 10,000 postpaid and 11,000 prepaid.
- Retail postpaid churn improved to 1.5 percent from 1.6 percent; postpaid customers comprised 95 percent of retail customers.
- 5 percent increase in cell sites to 7,645.
- Nearly 1.2 million customers signed-up for Belief Plans.
Wireline/TDS Telecom
- 9 percent increase in ILEC high-speed data customers.
- 23 percent increase in ILEC data revenues, representing 21 percent of ILEC revenues.
- ILEC equivalent access lines remained stable at 767,200, primarily due to a loss of physical access lines partially offset by growth in high-speed data customers.
- managedIP stations (ILEC and CLEC) grew to 27,400 from 13,900.
As previously announced, TDS will hold a teleconference Feb. 24, 2011 at 9:30 a.m. CST. Listen to the live call online via the Conference Calls page of www.teldta.com.
Telephone and Data Systems, Inc. (NYSE: TDS, TDS.S) reported operating revenues of $1,265.8 million for the fourth quarter of 2010, versus $ 1,261.9 million in the comparable period one year ago. Net income attributable to TDS was $14.5 million, or $0.14 earnings per diluted share. In the fourth quarter of 2009, net income attributable to TDS was $11.7 million, or $0.11 diluted earnings per share.
For the twelve months ended Dec. 31, 2010, TDS reported operating revenues of $4,986.8 million, versus $5,019.9 million in 2009. Net income attributable to TDS for 2010 was $143.8 million, or $1.36 per diluted share.In 2009, net income attributable to TDS was $188.9 million, or $1.72 diluted earnings per share. Fourth quarter and full year 2009 results were impacted by a $14.0 million (pre-tax), or $0.07 diluted loss per share, charge for impairment of licenses.
"Both U.S. Cellular and TDS Telecom faced a cautious economy and intense competition in 2010," said LeRoy T. Carlson, Jr., TDS president and CEO. "We made progress on our underlying strategies and improved certain key metrics, and we're focused on growing and improving our competitive position.
"TDS Telecom had a good year in 2010, increasing revenue and improving operating margins, despite physical access line losses. Data revenue growth was strong, as we added DSL customers, and more customers migrated to higher data speeds. On the commercial side, the company significantly expanded availability of its managedIP service and nearly doubled the number of stations. TDS Telecom is also now offering hosted and managed service solutions, as part of its strategy to offer a diverse range of commercial services that complement its core offerings.
"U.S. Cellular's launch of The Belief Project in October was an important step in the company's customer satisfaction strategy. Nearly 1.2 million new and existing customers had chosen our Belief Plans by year end. Two important measures--average revenue per customer and customer loyalty--improved in 2010. Customer additions, however, did not meet expectations, and the impact of promotions and smartphone subsidies, as well as spending related to enablement initiatives, reduced 2010 profitability.
"Our businesses are making significant strides to compete effectively, and TDS stands behind them with a strong financial foundation that provides support and flexibility for future growth."
TDS common and special common repurchase summary
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
Cost
|
|
|
Repurchase Period
|
Shares
|
|
(in millions)
|
|
|
2010 (fourth quarter)
|
610,277
|
|
$
|
17.5
|
|
|
2010 (third quarter)
|
705,000
|
|
$
|
19.5
|
|
|
2010 (second quarter)
|
568,297
|
|
$
|
16.3
|
|
|
2010 (first quarter)
|
510,902
|
|
$
|
14.8
|
|
|
2010 (full year)
|
2,394,476
|
|
$
|
68.1
|
|
|
|
|
|
|
|
|
|
2009 (full year)
|
6,374,741
|
|
$
|
176.6
|
|
|
|
|
|
|
|
|
|
2008 (full year)
|
5,861,822
|
|
$
|
199.6
|
|
|
|
|
|
|
|
|
|
Total
|
14,631,039
|
|
$
|
444.3
|
|
|
|
| |
|
|
|
|
|
Fourth Quarter Treasury Activities
TDS issued $225 million in 49-year debt at 6.875 percent and in turn redeemed $217.5 million of 7.6 percent debt. Additionally, TDS and U.S. Cellular entered into new revolving credit facilities, for $400 million and $300 million respectively, that are due to expire in Dec. 2015.
Guidance for year ending Dec. 31, 2011
This guidance represents the views of management as of Feb. 24, 2011 and should not be assumed to be accurate as of any other date. There can be no assurance that final results will not differ materially from this guidance. TDS undertakes no legal duty to update such information, whether as a result of new information, future events, or otherwise.
|
|
|
|
|
2011
|
|
2010
|
|
|
U.S. Cellular
|
EstimatedResults
|
|
ActualResults
|
|
|
Service revenues
|
$4,000 - $4,100 million
|
|
$3,913.0 million
|
|
|
Adjusted OIBDA (1) (3)
|
$775 - $875 million
|
|
$783.1 million
|
|
|
Operating income (3)
|
$185 - $285 million
|
|
$195.4 million
|
|
|
Depreciation, amortization and accretion expenses, and
|
|
|
|
|
|
losses on asset disposals and impairment of assets (2)
|
Approx. $590 million
|
|
$587.8 million
|
|
|
Capital expenditures (3)
|
Approx. $650 million
|
|
$583.1 million
|
|
|
|
|
|
|
|
|
|
TDS Telecom ILEC and CLEC operations:
|
|
|
|
|
|
Operating revenues
|
$780 - $810 million
|
|
$795.8 million
|
|
|
Adjusted OIBDA (1)
|
$260 - $290 million
|
|
$275.0 million
|
|
|
Operating income
|
$75 - $105 million
|
|
$99.8 million
|
|
|
Depreciation, amortization and accretion expenses, and
|
|
|
|
|
|
losses on asset disposals and impairment of assets (2)
|
Approx. $185 million
|
|
$175.2 million
|
|
|
Capital expenditures (4)
|
$175 - $200 million
|
|
$157.3 million
|
|
|
|
| |
|
|
|
|
|
|
(1)
|
Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization and accretion (OIBDA); the net gain or loss on asset disposals (if any); and the loss on impairment of assets (if any). This measure also may be commonly referred to by management as operating cash flow. This measure should not be confused with Cash flows from operating activities, which is a component of the Consolidated Statement of Cash Flows.
|
|
|
|
|
|
(2)
|
2010 Actual Results include losses on asset disposals and no losses on impairment of assets. The 2011 Estimated Results include only the estimate for Depreciation, amortization and accretion expenses and losses on disposals of assets, and do not include any estimate for losses on impairment of assets (since these cannot be predicted).
|
|
|
|
|
|
(3)
|
This guidance is based on U.S. Cellular's current plans. New developments or changing competitive conditions in the wireless industry, such as the rate of deployment of 4G Long-term Evolution ("LTE") technology by other carriers, could affect U.S. Cellular's LTE deployment plans and, as a result, its capital expenditures and operating expenses.
|
|
|
|
|
|
(4)
|
TDS Telecom will fund its share for projects approved under the American Recovery and Reinvestment Act of 2009 to increase broadband access in unserved areas. Under the Recovery Act, TDS Telecom will receive $105.1 million in federal grants and will provide $30.9 million of its own funds to complete 44 projects over the next 24 to 36 months.
|
|
| |
|
Conference call information
TDS will hold a conference call on Feb. 24, 2011 at 9:30 a.m. CST.
Before the call, certain financial and statistical information to be discussed during the call will be posted to the Conference Calls page of www.teldta.com. The call will be archived on the Conference Calls page of www.teldta.com.
About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 500(R) company, provides wireless, local and long-distance telephone, and broadband services to 7.2 million customers in 36 states through its business units, U.S. Cellular (wireless) and TDS Telecom (wireline). Founded in 1969 and headquartered in Chicago, TDS had 12,400 employees as of Dec. 31, 2010. For more information about TDS, visit www.teldta.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates and expectations. These statements are based on current estimates, projections and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: The ability of U.S. Cellular to successfully grow its markets; the overall economy; competition; the access to and pricing of unbundled network elements; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; risks and uncertainties relating to possible future restatements; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services 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 used by TDS to furnish this press release to the SEC, which are incorporated by reference herein.
|
|
|
UNITED STATES CELLULAR CORPORATION
|
|
|
SUMMARY OPERATING DATA (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
12/31/2010
|
|
|
9/30/2010
|
|
|
6/30/2010
|
|
|
3/31/2010
|
|
|
12/31/2009
|
|
|
Total population
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated markets(1)
|
|
90,468,000
|
|
|
90,468,000
|
|
|
90,468,000
|
|
|
90,468,000
|
|
|
89,712,000
|
|
|
Consolidated operating markets(1)
|
|
46,546,000
|
|
|
46,546,000
|
|
|
46,546,000
|
|
|
46,546,000
|
|
|
46,306,000
|
|
|
Market penetration at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated markets(2)
|
|
6.7%
|
|
|
6.7%
|
|
|
6.8%
|
|
|
6.8%
|
|
|
6.8%
|
|
|
Consolidated operating markets(2)
|
|
13.0%
|
|
|
13.1%
|
|
|
13.2%
|
|
|
13.2%
|
|
|
13.3%
|
|
|
All customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at end of period
|
|
6,072,000
|
|
|
6,103,000
|
|
|
6,144,000
|
|
|
6,147,000
|
|
|
6,141,000
|
|
|
Gross additions
|
|
327,000
|
|
|
338,000
|
|
|
349,000
|
|
|
358,000
|
|
|
399,000
|
|
|
Net additions (losses)
|
|
(31,000)
|
|
|
(41,000)
|
|
|
(3,000)
|
|
|
6,000
|
|
|
10,000
|
|
|
Smartphones sold as a percent of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total devices sold(3)
|
|
39.6%
|
|
|
23.6%
|
|
|
15.8%
|
|
|
16.6%
|
|
|
14.7%
|
|
|
Retail customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at end of period
|
|
5,729,000
|
|
|
5,750,000
|
|
|
5,775,000
|
|
|
5,768,000
|
|
|
5,744,000
|
|
|
Smartphone penetration (3) (4)
|
|
16.6%
|
|
|
12.0%
|
|
|
10.1%
|
|
|
8.9%
|
|
|
7.5%
|
|
|
Gross additions
|
|
292,000
|
|
|
301,000
|
|
|
307,000
|
|
|
305,000
|
|
|
354,000
|
|
|
Net retail additions (losses)(5)
|
|
(21,000)
|
|
|
(25,000)
|
|
|
7,000
|
|
|
24,000
|
|
|
39,000
|
|
|
Net postpaid additions (losses)
|
|
(10,000)
|
|
|
(25,000)
|
|
|
(22,000)
|
|
|
(9,000)
|
|
|
26,000
|
|
|
Net prepaid additions (losses)
|
|
(11,000)
|
|
|
---
|
|
|
29,000
|
|
|
33,000
|
|
|
13,000
|
|
|
Service revenue components (000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail service
|
$
|
864,905
|
|
$
|
865,766
|
|
$
|
863,836
|
|
$
|
865,039
|
|
$
|
866,866
|
|
|
Inbound roaming
|
|
67,545
|
|
|
72,901
|
|
|
60,902
|
|
|
51,942
|
|
|
61,728
|
|
|
Other
|
|
59,464
|
|
|
44,836
|
|
|
47,838
|
|
|
48,027
|
|
|
56,814
|
|
|
Total service revenues (000s)
|
$
|
991,914
|
|
$
|
983,503
|
|
$
|
972,576
|
|
$
|
965,008
|
|
$
|
985,408
|
|
|
Divided by average customers (000s)
|
|
6,081
|
|
|
6,124
|
|
|
6,151
|
|
|
6,137
|
|
|
6,139
|
|
|
Divided by three months in each quarter
|
|
3
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
Total average monthly revenue per unit(6)
|
$
|
54.37
|
|
$
|
53.53
|
|
$
|
52.71
|
|
$
|
52.41
|
|
$
|
53.51
|
|
|
Components of average monthly revenue per customer by revenue type
|
|
|
|
|
|
|
|
|
|
|
|
Retail service(6)
|
$
|
47.41
|
|
$
|
47.12
|
|
$
|
46.81
|
|
$
|
46.98
|
|
$
|
47.07
|
|
|
Inbound roaming(6)
|
$
|
3.70
|
|
$
|
3.97
|
|
$
|
3.30
|
|
$
|
2.82
|
|
$
|
3.35
|
|
|
Other(6)
|
$
|
3.26
|
|
$
|
2.44
|
|
$
|
2.60
|
|
$
|
2.61
|
|
$
|
3.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail postpaid churn rate(7)
|
|
1.5%
|
|
|
1.6%
|
|
|
1.4%
|
|
|
1.4%
|
|
|
1.6%
|
|
|
Capital expenditures (000s)
|
$
|
203,400
|
|
$
|
124,700
|
|
$
|
133,500
|
|
$
|
121,500
|
|
$
|
189,000
|
|
|
Cell sites in service
|
|
7,645
|
|
|
7,524
|
|
|
7,416
|
|
|
7,310
|
|
|
7,279
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Used only to calculate market penetration of consolidated markets and consolidated operating markets, respectively, which is calculated by dividing customers by the total market population (without duplication of population in overlapping markets).
|
|
|
(2)
|
Calculated by dividing the number of wireless customers at the end of the period by the total population of consolidated markets and consolidated operating markets, respectively, as estimated by Claritas.
|
|
|
(3)
|
Smartphones represent wireless devices which run on a Blackberry, Windows Mobile, or Android operating system.
|
|
|
(4)
|
Smartphone penetration is calculated by dividing postpaid customers on smartphone service plans by total postpaid customers.
|
|
|
(5)
|
Calculated by adding net postpaid additions (losses) and net prepaid additions (losses).
|
|
|
(6)
|
Calculated by dividing the components of service revenues by the average customers and number of months in the quarter.
|
|
|
(7)
|
Represents the percentage of the retail postpaid customer base that disconnects service each month. This amount represents the average retail postpaid churn rate for each respective quarterly period.
|
|
| |
|
|
|
|
TELEPHONE AND DATA SYSTEMS, INC.
|
|
|
SUMMARY OPERATING DATA (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
12/31/2010
|
|
|
9/30/2010
|
|
|
6/30/2010
|
|
|
3/31/2010
|
|
|
12/31/2009
|
|
|
TDS Telecom
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ILEC:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equivalent access lines (1)
|
|
767,200
|
|
|
773,800
|
|
|
779,200
|
|
|
778,700
|
|
|
775,900
|
|
|
Physical access lines (2)
|
|
507,700
|
|
|
517,000
|
|
|
525,000
|
|
|
530,400
|
|
|
536,300
|
|
|
High-speed data customers (3)
|
|
227,700
|
|
|
225,400
|
|
|
223,200
|
|
|
217,400
|
|
|
208,300
|
|
|
Long-distance customers
|
|
370,100
|
|
|
370,800
|
|
|
369,100
|
|
|
365,600
|
|
|
362,800
|
|
|
managedIP stations (4)
|
|
3,600
|
|
|
3,100
|
|
|
2,700
|
|
|
2,300
|
|
|
1,900
|
|
|
Capital expenditures (000s)
|
$
|
55,700
|
|
$
|
33,000
|
|
$
|
28,200
|
|
$
|
20,200
|
|
$
|
26,900
|
|
|
CLEC:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equivalent access lines (1)
|
|
335,400
|
|
|
338,700
|
|
|
343,100
|
|
|
349,300
|
|
|
355,900
|
|
|
High-speed data customers (3)
|
|
33,100
|
|
|
33,900
|
|
|
35,000
|
|
|
36,000
|
|
|
36,900
|
|
|
managedIP stations (4)
|
|
23,800
|
|
|
20,300
|
|
|
17,000
|
|
|
14,300
|
|
|
12,000
|
|
|
Capital expenditures (000s)
|
$
|
6,200
|
|
$
|
5,500
|
|
$
|
5,400
|
|
$
|
3,200
|
|
$
|
6,800
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Sum of physical access lines and high-capacity data lines, adjusted to estimate the equivalent number of physical access lines in terms of capacity, plus the number of managedIP stations.
|
|
|
(2)
|
Individual circuits connecting customers to a telephone company's central office facilities.
|
|
|
(3)
|
The number of customers provided high-capacity data circuits via various technologies, including DSL, managedIP and dedicated Internet circuit technologies.
|
|
|
(4)
|
The number of telephone handsets providing communications using packet networking technology.
|
|
| |
|
|
|
|
TELEPHONE AND DATA SYSTEMS, INC.
|
|
|
CONSOLIDATED STATEMENT OF OPERATIONS HIGHLIGHTS
|
|
|
Three Months Ended December 31,
|
|
|
(Unaudited, dollars and shares in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/ (Decrease)
|
|
|
|
|
|
2010
|
|
|
2009
|
|
Amount
|
|
Percent
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular
|
$
|
1,063,150
|
|
|
$
|
1,060,098
|
|
$
|
3,052
|
|
--
|
|
|
TDS Telecom
|
|
199,101
|
|
|
|
198,048
|
|
|
1,053
|
|
1%
|
|
|
All Other(1)
|
|
3,508
|
|
|
|
3,764
|
|
|
(256)
|
|
(7%)
|
|
|
|
|
|
|
1,265,759
|
|
|
|
1,261,910
|
|
|
3,849
|
|
--
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion
|
|
921,778
|
|
|
|
887,572
|
|
|
34,206
|
|
4%
|
|
|
|
Depreciation, amortization and accretion
|
|
144,649
|
|
|
|
146,807
|
|
|
(2,158)
|
|
(1%)
|
|
|
|
Loss on asset disposals, net
|
|
2,310
|
|
|
|
7,528
|
|
|
(5,218)
|
|
(69%)
|
|
|
|
Loss on impairment of intangible assets
|
|
--
|
|
|
|
14,000
|
|
|
(14,000)
|
|
N/M
|
|
|
|
|
|
|
1,068,737
|
|
|
|
1,055,907
|
|
|
12,830
|
|
1%
|
|
|
TDS Telecom
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion
|
|
129,981
|
|
|
|
129,568
|
|
|
413
|
|
--
|
|
|
|
Depreciation, amortization and accretion
|
|
43,837
|
|
|
|
42,044
|
|
|
1,793
|
|
4%
|
|
|
|
Loss on asset disposals, net
|
|
464
|
|
|
|
649
|
|
|
(185)
|
|
(29%)
|
|
|
|
|
|
|
174,282
|
|
|
|
172,261
|
|
|
2,021
|
|
1%
|
|
|
All Other(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation and amortization
|
|
1,677
|
|
|
|
367
|
|
|
1,310
|
|
>100%
|
|
|
|
Depreciation and amortization
|
|
2,643
|
|
|
|
2,757
|
|
|
(114)
|
|
(4%)
|
|
|
|
(Gain) Loss on asset disposals, net
|
|
(34)
|
|
|
|
119
|
|
|
(153)
|
|
>100%
|
|
|
|
|
|
|
4,286
|
|
|
|
3,243
|
|
|
1,043
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
1,247,305
|
|
|
|
1,231,411
|
|
|
15,894
|
|
1%
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular
|
|
(5,587)
|
|
|
|
4,191
|
|
|
(9,778)
|
|
>100%
|
|
|
TDS Telecom
|
|
24,819
|
|
|
|
25,787
|
|
|
(968)
|
|
(4%)
|
|
|
All Other (1)
|
|
(778)
|
|
|
|
521
|
|
|
(1,299)
|
|
>100%
|
|
|
|
|
|
|
18,454
|
|
|
|
30,499
|
|
|
(12,045)
|
|
(39%)
|
|
|
Investment and other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
|
23,027
|
|
|
|
23,698
|
|
|
(671)
|
|
(3%)
|
|
|
Interest and dividend income
|
|
2,608
|
|
|
|
2,686
|
|
|
(78)
|
|
(3%)
|
|
|
Interest expense
|
|
(28,700)
|
|
|
|
(32,311)
|
|
|
3,611
|
|
11%
|
|
|
Other, net
|
|
468
|
|
|
|
496
|
|
|
(28)
|
|
(6%)
|
|
|
|
Total investment and other income (expense)
|
|
(2,597)
|
|
|
|
(5,431)
|
|
|
2,834
|
|
52%
|
|
|
Income before income taxes
|
|
15,857
|
|
|
|
25,068
|
|
|
(9,211)
|
|
(37%)
|
|
|
Income tax expense (benefit)
|
|
(5,884)
|
|
|
|
8,388
|
|
|
(14,272)
|
|
>100%
|
|
|
Net income
|
|
21,741
|
|
|
|
16,680
|
|
|
5,061
|
|
30%
|
|
|
Less: Net (income) attributable to noncontrolling interests, net of tax
|
|
(7,211)
|
|
|
|
(4,951)
|
|
|
(2,260)
|
|
(46%)
|
|
|
Net income attributable to TDS shareholders
|
|
14,530
|
|
|
|
11,729
|
|
|
2,801
|
|
24%
|
|
|
Preferred dividend requirement
|
|
(12)
|
|
|
|
(13)
|
|
|
1
|
|
8%
|
|
|
Net income available to common
|
$
|
14,518
|
|
|
$
|
11,716
|
|
$
|
2,802
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
104,070
|
|
|
|
106,166
|
|
|
(2,096)
|
|
(2%)
|
|
|
Basic earnings per share attributable to TDS shareholders
|
$
|
0.14
|
|
|
$
|
0.11
|
|
$
|
0.03
|
|
27%
|
|
|
Diluted weighted average shares outstanding
|
|
104,604
|
|
|
|
106,489
|
|
|
(1,885)
|
|
(2%)
|
|
|
Diluted earnings per share attributable to TDS shareholders
|
$
|
0.14
|
|
|
$
|
0.11
|
|
$
|
0.03
|
|
27%
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consists of Suttle Straus printing and distribution operations, corporate operations and intercompany eliminations.
|
|
|
|
|
|
N/M - Percentage change not meaningful
|
|
| |
|
|
|
|
TELEPHONE AND DATA SYSTEMS, INC.
|
|
|
CONSOLIDATED STATEMENT OF OPERATIONS HIGHLIGHTS
|
|
|
Year Ended December 31,
|
|
|
(Unaudited, dollars and shares in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
|
2010
|
|
2009
|
|
Amount
|
|
Percent
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular
|
$
|
4,177,681
|
|
$
|
4,213,880
|
|
$
|
(36,199)
|
|
(1%)
|
|
|
TDS Telecom
|
|
795,842
|
|
|
789,852
|
|
|
5,990
|
|
1%
|
|
|
All Other(1)
|
|
13,306
|
|
|
16,211
|
|
|
(2,905)
|
|
(18%)
|
|
|
|
|
|
|
4,986,829
|
|
|
5,019,943
|
|
|
(33,114)
|
|
(1%)
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion
|
|
3,394,536
|
|
|
3,293,251
|
|
|
101,285
|
|
3%
|
|
|
|
Depreciation, amortization and accretion
|
|
577,054
|
|
|
569,514
|
|
|
7,540
|
|
1%
|
|
|
|
Loss on asset disposals, net
|
|
10,717
|
|
|
16,169
|
|
|
(5,452)
|
|
(34%)
|
|
|
|
Loss on impairment of intangible assets
|
|
--
|
|
|
14,000
|
|
|
(14,000)
|
|
N/M
|
|
|
|
|
|
|
3,982,307
|
|
|
3,892,934
|
|
|
89,373
|
|
2%
|
|
|
TDS Telecom
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion
|
|
520,823
|
|
|
526,650
|
|
|
(5,827)
|
|
(1%)
|
|
|
|
Depreciation, amortization and accretion
|
|
174,054
|
|
|
167,316
|
|
|
6,738
|
|
4%
|
|
|
|
Loss on asset disposals, net
|
|
1,131
|
|
|
2,401
|
|
|
(1,270)
|
|
(53%)
|
|
|
|
|
|
|
696,008
|
|
|
696,367
|
|
|
(359)
|
|
--
|
|
|
All Other (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation and amortization
|
|
7,967
|
|
|
15,193
|
|
|
(7,226)
|
|
(48%)
|
|
|
|
Depreciation and amortization
|
|
10,640
|
|
|
11,996
|
|
|
(1,356)
|
|
(11%)
|
|
|
|
Loss on asset disposals, net
|
|
(85)
|
|
|
188
|
|
|
(273)
|
|
>100%
|
|
|
|
|
|
|
18,522
|
|
|
27,377
|
|
|
(8,855)
|
|
(32%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
4,696,837
|
|
|
4,616,678
|
|
|
80,159
|
|
2%
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular
|
|
195,374
|
|
|
320,946
|
|
|
(125,572)
|
|
(39%)
|
|
|
TDS Telecom
|
|
99,834
|
|
|
93,485
|
|
|
6,349
|
|
7%
|
|
|
All Other (1)
|
|
(5,216)
|
|
|
(11,166)
|
|
|
5,950
|
|
53%
|
|
|
|
|
|
|
289,992
|
|
|
403,265
|
|
|
(113,273)
|
|
(28%)
|
|
|
Investment and other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
|
98,074
|
|
|
90,732
|
|
|
7,342
|
|
8%
|
|
|
Interest and dividend income
|
|
10,508
|
|
|
11,121
|
|
|
(613)
|
|
(6%)
|
|
|
Interest expense
|
|
(115,220)
|
|
|
(126,209)
|
|
|
10,989
|
|
9%
|
|
|
Other, net
|
|
(2,089)
|
|
|
2,000
|
|
|
(4,089)
|
|
>100%
|
|
|
|
Total investment and other income (expense)
|
|
(8,727)
|
|
|
(22,356)
|
|
|
13,629
|
|
61%
|
|
|
Income before income taxes
|
|
281,265
|
|
|
380,909
|
|
|
(99,644)
|
|
(26%)
|
|
|
Income tax expense
|
|
92,283
|
|
|
133,800
|
|
|
(41,517)
|
|
(31%)
|
|
|
Net income
|
|
188,982
|
|
|
247,109
|
|
|
(58,127)
|
|
(24%)
|
|
|
Less: Net (income) attributable to noncontrolling interests, net of tax
|
|
(45,126)
|
|
|
(58,144)
|
|
|
13,018
|
|
22%
|
|
|
Net income attributable to TDS shareholders
|
|
143,856
|
|
|
188,965
|
|
|
(45,109)
|
|
(24%)
|
|
|
Preferred dividend requirement
|
|
(50)
|
|
|
(51)
|
|
|
1
|
|
2%
|
|
|
Net income available to common
|
$
|
143,806
|
|
$
|
188,914
|
|
$
|
(45,108)
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
105,111
|
|
|
109,339
|
|
|
(4,228)
|
|
(4%)
|
|
|
Basic earnings per share attributable to TDS shareholders
|
$
|
1.37
|
|
$
|
1.73
|
|
$
|
(0.36)
|
|
(21%)
|
|
|
Diluted weighted average shares outstanding
|
|
105,506
|
|
|
109,577
|
|
|
(4,071)
|
|
(4%)
|
|
|
Diluted earnings per share attributable to TDS shareholders
|
$
|
1.36
|
|
$
|
1.72
|
|
$
|
(0.36)
|
|
(21%)
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consists of Suttle-Straus printing and distribution operations, corporate operations and intercompany eliminations.
|
|
|
|
|
|
N/M - Percentage change not meaningful
|
|
| |
|
|
|
|
TELEPHONE AND DATA SYSTEMS, INC.
|
|
|
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
|
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
368,134
|
|
$
|
670,992
|
|
|
Short-term investments
|
|
402,882
|
|
|
113,275
|
|
|
Accounts receivable from customers and other
|
|
512,946
|
|
|
515,443
|
|
|
Inventory
|
|
116,330
|
|
|
156,987
|
|
|
Net deferred income tax asset
|
|
37,079
|
|
|
29,874
|
|
|
Prepaid expenses
|
|
76,935
|
|
|
94,336
|
|
|
Prepaid taxes
|
|
64,386
|
|
|
3,718
|
|
|
Other current assets
|
|
17,384
|
|
|
63,046
|
|
|
|
|
|
1,596,076
|
|
|
1,647,671
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
|
Licenses
|
|
1,460,126
|
|
|
1,443,025
|
|
|
Goodwill
|
|
728,455
|
|
|
707,840
|
|
|
Other intangible assets
|
|
30,810
|
|
|
26,589
|
|
|
Investments in unconsolidated entities
|
|
197,922
|
|
|
203,799
|
|
|
Long-term investments
|
|
102,185
|
|
|
--
|
|
|
Other investments
|
|
8,988
|
|
|
9,785
|
|
|
|
|
|
2,528,486
|
|
|
2,391,038
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
|
|
|
U.S. Cellular
|
|
2,615,072
|
|
|
2,601,338
|
|
|
TDS Telecom
|
|
909,951
|
|
|
880,378
|
|
|
Other
|
|
33,311
|
|
|
26,129
|
|
|
|
|
|
3,558,334
|
|
|
3,507,845
|
|
|
|
|
|
|
|
|
|
|
|
Other assets and deferred charges
|
|
79,623
|
|
|
65,759
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
7,762,519
|
|
$
|
7,612,313
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
TELEPHONE AND DATA SYSTEMS, INC.
|
|
|
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
|
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2010
|
|
2009
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
$
|
1,711
|
|
$
|
2,509
|
|
|
|
Accounts payable
|
|
344,355
|
|
|
347,348
|
|
|
|
Customer deposits and deferred revenues
|
|
171,781
|
|
|
164,451
|
|
|
|
Accrued interest
|
|
2,718
|
|
|
12,227
|
|
|
|
Accrued taxes
|
|
46,110
|
|
|
62,568
|
|
|
|
Accrued compensation
|
|
99,020
|
|
|
93,524
|
|
|
|
Other current liabilities
|
|
144,938
|
|
|
117,081
|
|
|
|
|
|
|
810,633
|
|
|
799,708
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred liabilities and credits
|
|
|
|
|
|
|
|
|
Net deferred income tax liability
|
|
585,468
|
|
|
517,762
|
|
|
|
Other deferred liabilities and credits
|
|
404,892
|
|
|
373,862
|
|
|
|
|
|
|
990,360
|
|
|
891,624
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
1,499,862
|
|
|
1,492,908
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests with redemption features
|
|
855
|
|
|
727
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
TDS shareholders' equity
|
|
|
|
|
|
|
|
|
Series A Common, Special Common and Common Shares, par value $.01
|
|
1,270
|
|
|
1,270
|
|
|
|
Capital in excess of par value
|
|
2,107,929
|
|
|
2,088,807
|
|
|
|
Special Common and Common Treasury shares, at cost
|
|
(738,695)
|
|
|
(681,649)
|
|
|
|
Accumulated other comprehensive loss
|
|
(3,208)
|
|
|
(2,710)
|
|
|
|
Retained earnings
|
|
2,446,626
|
|
|
2,358,580
|
|
|
|
|
Total TDS shareholders' equity
|
|
3,813,922
|
|
|
3,764,298
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred shares
|
|
830
|
|
|
832
|
|
|
Noncontrolling interests
|
|
646,057
|
|
|
662,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
4,460,809
|
|
|
4,427,346
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
$
|
7,762,519
|
|
$
|
7,612,313
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET HIGHLIGHTS
|
|
|
December 31, 2010
|
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
TDS
|
|
TDS Corporate
|
|
Intercompany
|
|
TDS
|
|
|
|
|
Cellular
|
|
Telecom
|
|
& Other
|
|
Eliminations
|
|
Consolidated
|
|
|
Cash and cash equivalents
|
$
|
294,426
|
|
$
|
7,285
|
|
$
|
66,423
|
|
$
|
--
|
|
$
|
368,134
|
|
|
Affiliated cash investments
|
|
--
|
|
|
341,797
|
|
|
--
|
|
|
(341,797)
|
|
|
--
|
|
|
Short-term investments
|
|
146,586
|
|
|
97,020
|
|
|
159,276
|
|
|
--
|
|
|
402,882
|
|
|
|
$
|
441,012
|
|
$
|
446,102
|
|
$
|
225,699
|
|
$
|
(341,797)
|
|
$
|
771,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licenses, goodwill and other intangible assets
|
$
|
1,947,597
|
|
$
|
464,854
|
|
$
|
(193,059)
|
|
$
|
--
|
|
$
|
2,219,392
|
|
|
Investment in unconsolidated entities
|
|
160,847
|
|
|
3,806
|
|
|
41,028
|
|
|
(7,759)
|
|
|
197,922
|
|
|
Long-term and other investments
|
|
50,103
|
|
|
1,541
|
|
|
59,528
|
|
|
--
|
|
|
111,172
|
|
|
|
|
$
|
2,158,547
|
|
$
|
470,201
|
|
$
|
(92,503)
|
|
$
|
(7,759)
|
|
$
|
2,528,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
$
|
2,615,072
|
|
$
|
909,951
|
|
$
|
33,311
|
|
$
|
--
|
|
$
|
3,558,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
$
|
101
|
|
$
|
330
|
|
$
|
1,280
|
|
$
|
--
|
|
$
|
1,711
|
|
|
Non-current portion
|
|
867,941
|
|
|
1,953
|
|
|
629,968
|
|
|
--
|
|
|
1,499,862
|
|
|
|
Total
|
$
|
868,042
|
|
$
|
2,283
|
|
$
|
631,248
|
|
$
|
--
|
|
$
|
1,501,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred shares
|
$
|
--
|
|
$
|
--
|
|
$
|
830
|
|
$
|
--
|
|
$
|
830
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telephone and Data Systems, Inc.
Schedule of Cash and Cash Equivalents and Investments
(Unaudited, dollars in thousands)
In an effort to improve investment returns, during 2010, TDS elected to use a portion of its cash balance to directly purchase U.S. treasury securities and securities insured by the Federal Deposit Insurance Corporation ("FDIC"). The maturity dates of such direct investments were staggered in order to maintain cash balances and liquidity at targeted levels. TDS also continues to invest in certificates of deposit that are insured by the FDIC. The following table presents TDS' cash and cash equivalents; and investments in government-backed securities and certificates of deposit at December 31, 2010 and December 31, 2009.
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
368,134
|
|
$
|
670,992
|
|
|
Amounts included in short-term investments (1) (2)
|
|
|
|
|
|
|
|
|
|
Government-backed securities (3)
|
|
|
|
305,612
|
|
|
--
|
|
|
|
Certificates of deposit (4)
|
|
|
|
97,270
|
|
|
113,275
|
|
|
|
|
|
|
$
|
402,882
|
|
$
|
113,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts included in long-term investments (1) (5)
|
|
|
|
|
|
|
|
|
|
Government-backed securities (3)
|
|
|
$
|
102,185
|
|
$
|
--
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(1)
|
Designated as held-to-maturity investments and are recorded at amortized cost on the Consolidated Balance Sheet.
|
|
|
(2)
|
Maturities are less than twelve months from the respective balance sheet dates.
|
|
|
(3)
|
Includes U.S. treasuries and corporate notes that are guaranteed under the FDIC's Temporary Liquidity Guarantee Program.
|
|
|
(4)
|
TDS' investments in certificates of deposits are insured by the FDIC.
|
|
|
(5)
|
Maturities range between 14 and 24 months from the balance sheet date.
|
|
| |
|
|
|
|
TDS TELECOM HIGHLIGHTS
|
|
|
Three Months Ended December 31,
|
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
2010
|
|
2009
|
|
Amount
|
|
Percent
|
|
|
Local Telephone Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
$
|
43,880
|
|
$
|
45,304
|
|
$
|
(1,424)
|
|
(3%)
|
|
|
|
Data
|
|
33,265
|
|
|
26,965
|
|
|
6,300
|
|
23%
|
|
|
|
Network access
|
|
68,039
|
|
|
69,364
|
|
|
(1,325)
|
|
(2%)
|
|
|
|
Miscellaneous
|
|
10,410
|
|
|
9,840
|
|
|
570
|
|
6%
|
|
|
|
|
|
155,594
|
|
|
151,473
|
|
|
4,121
|
|
3%
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services and products
|
|
48,684
|
|
|
47,588
|
|
|
1,096
|
|
2%
|
|
|
|
Selling, general and administrative expenses
|
|
43,921
|
|
|
42,996
|
|
|
925
|
|
2%
|
|
|
|
Depreciation, amortization and accretion
|
|
37,942
|
|
|
35,873
|
|
|
2,069
|
|
6%
|
|
|
|
Loss on asset disposals
|
|
425
|
|
|
456
|
|
|
(31)
|
|
(7%)
|
|
|
|
|
|
130,972
|
|
|
126,913
|
|
|
4,059
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
24,622
|
|
$
|
24,560
|
|
$
|
62
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Competitive Local Exchange Carrier Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
45,878
|
|
$
|
48,940
|
|
$
|
(3,062)
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion
|
|
39,747
|
|
|
41,349
|
|
|
(1,602)
|
|
(4%)
|
|
|
|
Depreciation, amortization and accretion
|
|
5,895
|
|
|
6,171
|
|
|
(276)
|
|
(4%)
|
|
|
|
Loss on asset disposals
|
|
39
|
|
|
193
|
|
|
(154)
|
|
(80%)
|
|
|
|
|
|
45,681
|
|
|
47,713
|
|
|
(2,032)
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
197
|
|
$
|
1,227
|
|
$
|
(1,030)
|
|
(84%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany revenues
|
$
|
(2,371)
|
|
$
|
(2,365)
|
|
$
|
(6)
|
|
(0%)
|
|
|
Intercompany expenses
|
|
(2,371)
|
|
|
(2,365)
|
|
|
(6)
|
|
(0%)
|
|
|
|
|
|
--
|
|
|
--
|
|
|
--
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total TDS Telecom operating income
|
$
|
24,819
|
|
$
|
25,787
|
|
$
|
(968)
|
|
(4%)
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDS TELECOM HIGHLIGHTS
|
|
|
|
Twelve Months Ended December 31,
|
|
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase/(Decrease)
|
|
|
|
|
2010
|
|
2009
|
|
Amount
|
|
Percent
|
|
|
Local Telephone Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
$
|
179,539
|
|
$
|
187,223
|
|
$
|
(7,684)
|
|
(4%)
|
|
|
|
Data
|
|
126,029
|
|
|
103,682
|
|
|
22,347
|
|
22%
|
|
|
|
Network access
|
|
271,964
|
|
|
271,276
|
|
|
688
|
|
0%
|
|
|
|
Miscellaneous
|
|
39,862
|
|
|
37,346
|
|
|
2,516
|
|
7%
|
|
|
|
|
|
617,394
|
|
|
599,527
|
|
|
17,867
|
|
3%
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services and products
|
|
196,298
|
|
|
194,030
|
|
|
2,268
|
|
1%
|
|
|
|
Selling, general and administrative expenses
|
|
173,020
|
|
|
170,505
|
|
|
2,515
|
|
1%
|
|
|
|
Depreciation, amortization and accretion
|
|
149,375
|
|
|
142,913
|
|
|
6,462
|
|
5%
|
|
|
|
Loss on asset disposals
|
|
769
|
|
|
1,949
|
|
|
(1,180)
|
|
(61%)
|
|
|
|
|
|
519,462
|
|
|
509,397
|
|
|
10,065
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
97,932
|
|
$
|
90,130
|
|
$
|
7,802
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Competitive Local Exchange Carrier Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
187,984
|
|
$
|
199,375
|
|
$
|
(11,391)
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses excluding depreciation, amortization and accretion
|
|
161,041
|
|
|
171,165
|
|
|
(10,124)
|
|
(6%)
|
|
|
|
Depreciation, amortization and accretion
|
|
24,679
|
|
|
24,403
|
|
|
276
|
|
1%
|
|
|
|
Loss on asset disposals
|
|
362
|
|
|
452
|
|
|
(90)
|
|
(20%)
|
|
|
|
|
|
186,082
|
|
|
196,020
|
|
|
(9,938)
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
1,902
|
|
$
|
3,355
|
|
$
|
(1,453)
|
|
(43%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany revenues
|
$
|
(9,536)
|
|
$
|
(9,050)
|
|
$
|
(486)
|
|
(5%)
|
|
|
Intercompany expenses
|
|
(9,536)
|
|
|
(9,050)
|
|
|
(486)
|
|
(5%)
|
|
|
|
|
|
--
|
|
|
--
|
|
|
--
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total TDS Telecom operating income
|
$
|
99,834
|
|
$
|
93,485
|
|
$
|
6,349
|
|
7%
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TELEPHONE AND DATA SYSTEMS, INC.
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
Twelve Months Ended December 31,
|
|
|
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
$
|
188,982
|
|
$
|
247,109
|
|
|
|
Add (deduct) adjustments to reconcile net income to net
|
|
|
|
|
|
|
|
|
|
cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
761,748
|
|
|
748,826
|
|
|
|
|
|
Bad debts expense
|
|
83,098
|
|
|
115,989
|
|
|
|
|
|
Stock-based compensation expense
|
|
35,128
|
|
|
32,486
|
|
|
|
|
|
Deferred income taxes, net
|
|
74,074
|
|
|
34,275
|
|
|
|
|
|
Equity in earnings of unconsolidated entities
|
|
(98,074)
|
|
|
(90,732)
|
|
|
|
|
|
Distributions from unconsolidated entities
|
|
100,845
|
|
|
91,587
|
|
|
|
|
|
Loss on impairment of intangible assets
|
|
--
|
|
|
14,000
|
|
|
|
|
|
Loss on asset disposals, net
|
|
11,763
|
|
|
18,758
|
|
|
|
|
|
Noncash interest expense
|
|
9,733
|
|
|
4,412
|
|
|
|
|
|
Excess tax benefit from stock awards
|
|
(117)
|
|
|
(25)
|
|
|
|
|
|
Other operating activities
|
|
500
|
|
|
(46)
|
|
|
|
Changes in assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(79,182)
|
|
|
(115,087)
|
|
|
|
|
|
Inventory
|
|
40,657
|
|
|
(34,566)
|
|
|
|
|
|
Accounts payable
|
|
(4,016)
|
|
|
29,646
|
|
|
|
|
|
Customer deposits and deferred revenues
|
|
6,478
|
|
|
(8,763)
|
|
|
|
|
|
Accrued taxes
|
|
(95,872)
|
|
|
61,630
|
|
|
|
|
|
Accrued interest
|
|
(9,270)
|
|
|
(2,009)
|
|
|
|
|
|
Other assets and liabilities
|
|
95,470
|
|
|
(44,896)
|
|
|
|
|
|
|
|
1,121,945
|
|
|
1,102,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
(755,032)
|
|
|
(671,165)
|
|
|
Cash paid for acquisitions and licenses
|
|
(81,691)
|
|
|
(29,276)
|
|
|
Cash received from divestitures
|
|
--
|
|
|
50
|
|
|
Cash paid for investments
|
|
(493,750)
|
|
|
(109,230)
|
|
|
Cash received from investments
|
|
106,255
|
|
|
23,660
|
|
|
Other investing activities
|
|
370
|
|
|
4,515
|
|
|
|
|
|
|
|
(1,223,848)
|
|
|
(781,446)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Issuance of long-tem debt
|
|
225,648
|
|
|
--
|
|
|
Repayment of long-term debt
|
|
(220,249)
|
|
|
(143,078)
|
|
|
TDS Common Shares and Special Common Shares
|
|
|
|
|
|
|
|
|
reissued for benefit plans, net of tax payments
|
|
309
|
|
|
819
|
|
|
U.S. Cellular Common Shares reissued for benefit
|
|
|
|
|
|
|
|
|
plans, net of tax payments
|
|
509
|
|
|
(82)
|
|
|
Excess tax benefit from stock awards
|
|
117
|
|
|
25
|
|
|
Repurchase of TDS Common and Special Common Shares
|
|
(68,053)
|
|
|
(178,536)
|
|
|
Repurchase of U.S. Cellular Common Shares
|
|
(52,827)
|
|
|
(33,585)
|
|
|
Dividends paid
|
|
(47,202)
|
|
|
(46,798)
|
|
|
Payment of debt issuance costs
|
|
(12,533)
|
|
|
(10,079)
|
|
|
Distributions to noncontrolling interests
|
|
(19,630)
|
|
|
(17,533)
|
|
|
Payments to acquire additional interest in subsidiaries
|
|
(9,248)
|
|
|
(285)
|
|
|
Other financing activities
|
|
2,204
|
|
|
1,667
|
|
|
|
|
|
|
|
(200,955)
|
|
|
(427,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
(302,858)
|
|
|
(106,317)
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
Beginning of period
|
|
670,992
|
|
|
777,309
|
|
|
End of period
|
$
|
368,134
|
|
$
|
670,992
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Telephone and Data Systems, Inc.
Financial Measures and Reconciliations
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
Three Months Ended December 31, 2010
|
|
U.S. Cellular
|
|
TDS Telecom (1)
|
|
All Other (2)
|
|
Consolidated
Total
|
|
|
|
Operating revenues
|
|
$
|
1,063,150
|
|
$
|
199,101
|
|
$
|
3,508
|
|
$
|
1,265,759
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular equipment sales revenue
|
|
|
71,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenues
|
|
|
991,914
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(5,587)
|
|
|
24,819
|
|
|
(778)
|
|
|
18,454
|
|
|
|
Add (Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
144,649
|
|
|
43,837
|
|
|
2,643
|
|
|
191,129
|
|
|
|
|
Loss on impairment of intangible assets
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
|
(Gain) Loss on asset disposals
|
|
|
2,310
|
|
|
464
|
|
|
(34)
|
|
|
2,740
|
|
|
|
|
|
Adjusted OIBDA (3)
|
|
$
|
141,372
|
|
$
|
69,120
|
|
$
|
1,831
|
|
$
|
212,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA margin (4)
|
|
|
14.3%
|
|
|
34.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2009
|
|
U.S. Cellular
|
|
TDS Telecom (1)
|
|
All Other (2)
|
|
Consolidated Total
|
|
|
|
Operating revenues
|
|
$
|
1,060,098
|
|
$
|
198,048
|
|
$
|
3,764
|
|
$
|
1,261,910
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular equipment sales revenue
|
|
|
74,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenues
|
|
|
985,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
4,191
|
|
|
25,787
|
|
|
521
|
|
|
30,499
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
146,807
|
|
|
42,044
|
|
|
2,757
|
|
|
191,608
|
|
|
|
|
Loss on impairment of intangible assets
|
|
|
14,000
|
|
|
--
|
|
|
--
|
|
|
14,000
|
|
|
|
|
Loss on asset disposals
|
|
|
7,528
|
|
|
649
|
|
|
119
|
|
|
8,296
|
|
|
|
|
|
Adjusted OIBDA (3)
|
|
$
|
172,526
|
|
$
|
68,480
|
|
$
|
3,397
|
|
$
|
244,403
|
|
|
|
|
|
Adjusted OIBDA margin (4)
|
|
|
17.5%
|
|
|
34.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDS Consolidated
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
357,165
|
|
$
|
302,643
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
268,894
|
|
|
220,571
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (5)
|
|
$
|
88,271
|
|
$
|
82,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes defined on next page.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telephone and Data Systems, Inc.
Financial Measures and Reconciliation
(Unaudited, dollars in thousands)
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2010
|
|
U.S. Cellular
|
|
TDS Telecom (1)
|
|
All Other (2)
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
$
|
4,177,681
|
|
$
|
795,842
|
|
$
|
13,306
|
|
$
|
4,986,829
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular equipment sales revenue
|
|
|
264,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenues
|
|
|
3,913,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
195,374
|
|
|
99,834
|
|
|
(5,216)
|
|
|
289,992
|
|
|
|
Add (Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
577,054
|
|
|
174,054
|
|
|
10,640
|
|
|
761,748
|
|
|
|
|
Loss on impairment of intangible assets
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
|
(Gain) Loss on asset disposals
|
|
|
10,717
|
|
|
1,131
|
|
|
(85)
|
|
|
11,763
|
|
|
|
|
|
Adjusted OIBDA (3)
|
|
$
|
783,145
|
|
$
|
275,019
|
|
$
|
5,339
|
|
$
|
1,063,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA margin (4)
|
|
|
20.0%
|
|
|
34.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2009
|
|
U.S. Cellular
|
|
TDS Telecom (1)
|
|
All Other (2)
|
|
Consolidated
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
$
|
4,213,880
|
|
$
|
789,852
|
|
$
|
16,211
|
|
$
|
5,019,943
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Cellular equipment sales revenue
|
|
|
286,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenues
|
|
|
3,927,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
320,946
|
|
|
93,485
|
|
|
(11,166)
|
|
|
403,265
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
569,514
|
|
|
167,316
|
|
|
11,996
|
|
|
748,826
|
|
|
|
|
Loss on impairment of intangible assets
|
|
|
14,000
|
|
|
--
|
|
|
--
|
|
|
14,000
|
|
|
|
|
Loss on asset disposals
|
|
|
16,169
|
|
|
2,401
|
|
|
188
|
|
|
18,758
|
|
|
|
|
|
Adjusted OIBDA (3)
|
|
$
|
920,629
|
|
$
|
263,202
|
|
$
|
1,018
|
|
$
|
1,184,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA margin (4)
|
|
|
23.4%
|
|
|
33.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDS Consolidated
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
$
|
1,121,945
|
|
$
|
1,102,594
|
|
|
|
|
|
|
|
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
755,032
|
|
|
671,165
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (5)
|
|
$
|
366,913
|
|
$
|
431,429
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes ILEC and CLEC intercompany eliminations.
|
|
|
(2)
|
Consists of a non-reportable segment (Suttle-Straus), corporate operations and, intercompany eliminations between U.S. Cellular, TDS Telecom and corporate investments. Amounts in this column are presented only to reconcile to consolidated totals and may not otherwise be meaningful.
|
|
|
(3)
|
Adjusted OIBDA is a segment measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization and accretion (OIBDA); the net gain or loss on asset disposals (if any); and the loss on impairment of assets (if any). This measure also may be commonly referred to by management as operating cash flow. This measure should not be confused with Cash flows from operating activities, which is a component of the Consolidated Statement of Cash flows. Adjusted OIBDA excludes the net gain or loss on asset disposals and loss on impairment of assets, if any, in order to show operating results on a more comparable basis from period to period. TDS does not intend to imply that any of such amounts that are excluded are non-recurring, infrequent or unusual, and accordingly, they may be incurred in the future.
|
|
|
(4)
|
Adjusted OIBDA margin is defined as adjusted OIBDA divided by service revenues (U.S. Cellular) and operating revenues (TDS Telecom). Equipment revenues are excluded from the denominator of the U.S. Cellular calculation since equipment is generally sold at a net negative margin, and the net equipment subsidy is effectively a cost for purposes of assessing business results and is already reflected in adjusted OIBDA.TDS believes that this calculation method is consistent with the method used by certain investors to assess U.S. Cellular's business results. Adjusted OIBDA margin may also be commonly referred to by management as operating cash flow margin.
|
|
|
(5)
|
Free cash flow is defined as cash flows from operating activities minus capital expenditures. Free cash flow is a non-GAAP financial measure. TDS believes that free cash flow as reported by TDS is useful to investors and other users of its financial information in evaluating the amount of cash generated by business operations, after consideration of capital expenditures.
|
|
| |
|
SOURCE Telephone and Data Systems, Inc.