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TDS reports third quarter 2020 results

11/05/2020
UScellular and TDS Telecom report strong subscriber and financial results driving increases to 2020 guidance

CHICAGO, Nov. 5, 2020 /PRNewswire/ --

As previously announced, TDS will hold a teleconference November 6, 2020, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com 

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,324 million for the third quarter of 2020, versus $1,321 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $78 million and $0.66, respectively, for the third quarter of 2020 compared to $18 million and $0.15, respectively, in the same period one year ago.

"The TDS Enterprise had a strong quarter," said LeRoy T. Carlson, Jr., TDS President and CEO. "Impressive financial results produced by UScellular and TDS Telecom demonstrate how much our customers value our essential communications and high-quality data services. Both businesses have lifted their expectations for 2020 financial performance. Our associates continue to show exceptional dedication and resilience in keeping our operations and networks performing at top levels for our customers.

"At UScellular, churn remained very low and retail net additions grew through an increase in connected devices. The positive impact of higher ARPU, combined with  operational and cost discipline throughout the quarter, helped  drive a strong increase in profitability, compared to the same period a year ago. LT Therivel has successfully transitioned into his new role as CEO. During the quarter UScellular successfully completed a 5G millimeter wave test data session showing significant expansion of signal reach and speed. This is important in enabling UScellular to move faster and more cost-efficiently in its 5G evolution and it will also leverage this technology to better serve its customers and help close the digital divide. UScellular has launched a new logo and brand identity with a modern look – a visual signal of how they are working to expand their brand appeal.

"At TDS Telecom, our fiber investments are delivering results. TDS Telecom grew its Wireline video and broadband connections, and combined with demand for higher broadband speeds, drove increases in average residential revenue per connection and total residential revenue. TDS Telecom continues its fiber strategy and has now deployed fiber to 280,000 or 34% of its wireline service addresses. Bolstered by the Continuum acquisition, cable operations produced an exceptional quarter with increased broadband connections generating a 19% growth in revenues and a strong increase in profitability."

2020 Estimated Results

TDS' current estimates of full-year 2020 results for UScellular and TDS Telecom are shown below. Such estimates represent management's view as of November 5, 2020 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.

2020 Estimated Results



UScellular

Previous

Current

(Dollars in millions)



Service revenues

$3,000-$3,100

$3,025-$3,075

Adjusted OIBDA1

$725-$850

$800-$875

Adjusted EBITDA1

$900-$1,025

$975-$1,050

Capital expenditures

$850-$950

Unchanged

 

TDS Telecom

Previous

Current

(Dollars in millions)



Total operating revenues

$950-$1,000

Unchanged

Adjusted OIBDA1

$280-$310

$300-$320

Adjusted EBITDA1

$290-$320

$305-$325

Capital expenditures

$300-$350

Unchanged

The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2020 estimated results, actual results for the nine months ended September 30, 2020, and actual results for the year ended December 31, 2019. In providing 2020 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.

2020 Estimated Results


UScellular


TDS Telecom

(Dollars in millions)




Net income (GAAP)

N/A


N/A

Add back:




Income tax expense

N/A


N/A

Income before income taxes (GAAP)

$165-$240


$95-$115

Add back:




Interest expense

110


Depreciation, amortization and accretion expense

680


210

EBITDA (Non-GAAP)1

$955-$1,030


$305-$325

Add back or deduct:




(Gain) loss on asset disposals, net

20


Adjusted EBITDA (Non-GAAP)1

$975-$1,050


$305-$325

Deduct:




Equity in earnings of unconsolidated entities

170


Interest and dividend income

5


5

Adjusted OIBDA (Non-GAAP)1

$800-$875


$300-$320

 


Actual Results


Nine Months Ended
September 30, 2020


Year Ended
December 31, 2019


UScellular


TDS
Telecom


UScellular


TDS

Telecom 

(Dollars in millions)








Net income (GAAP)

$

227



$

81



$

133



$

92


Add back:








Income tax expense

11



13



52



30


Income before income taxes (GAAP)

$

238



$

94



$

185



$

122


Add back:








Interest expense

76



(3)



110



(3)


Depreciation, amortization and accretion expense

516



152



702



200


EBITDA (Non-GAAP)1

$

830



$

243



$

997



$

320


Add back or deduct:








(Gain) loss on asset disposals, net

14



1



19



(7)


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





(1)




(Gain) loss on investments

(3)








Adjusted EBITDA (Non-GAAP)1

$

841



$

243



$

1,015



$

313


Deduct:








Equity in earnings of unconsolidated entities

137





166




Interest and dividend income

6



4



17



12


Other, net



(1)






Adjusted OIBDA (Non-GAAP)1

$

698



$

240



$

832



$

300




Numbers may not foot due to rounding.



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, 2020, can be found on TDS' website at investors.tdsinc.com.

Conference Call Information

TDS will hold a conference call on November 6, 2020 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, UScellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,300 people as of September 30, 2020.

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

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:  All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the impact, duration and severity of the COVID-19 pandemic; 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 UScellular indebtedness or comply with the terms of debt covenants; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the state and federal regulatory environment; the ability to attract people of outstanding talent throughout all levels of the organization; conditions in the U.S. telecommunications industry; TDS' smaller scale relative to larger competitors; changes in demand, consumer preferences, price competition, or  churn rates; advances in  technology; the value of assets and investments; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or licenses and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; cyber-attacks or other breaches of network or information technology security; changes in facts and circumstances that could require TDS to record adjustments to amounts reflected in the financial statements; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; pending and future litigation. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K. 

The impact of the COVID-19 pandemic on TDS' business is uncertain, but depending on its duration and severity it could have a material adverse effect on TDS' business, financial condition or results of operations.

The impact of the global spread of COVID-19 on TDS' future operations is uncertain. Public health emergencies, such as COVID-19, pose the risk that TDS or its associates, agents, partners and suppliers may be unable to conduct business activities for an extended period of time and/or provide the level of service expected. TDS' ability to attract customers, maintain an adequate supply chain and execute on its business strategies and initiatives could be negatively impacted by this outbreak. Additionally, COVID-19 has caused and could continue to cause increased unemployment, economic downturn and credit market deterioration, all of which could negatively impact TDS. The extent of the impact of COVID-19 on TDS' business, financial condition and results of operations will depend on future circumstances, including the severity of the disease, the duration of the outbreak, actions taken by governmental authorities and other possible direct and indirect consequences, all of which are uncertain and cannot be predicted.

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


United States Cellular Corporation

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

9/30/2020


6/30/2020


3/31/2020


12/31/2019


9/30/2019

Retail Connections










Postpaid










Total at end of period

4,401,000



4,372,000



4,359,000



4,383,000



4,395,000


Gross additions

168,000



129,000



132,000



170,000



163,000


Feature phones

4,000



3,000



2,000



2,000



3,000


Smartphones

98,000



82,000



88,000



128,000



121,000


Connected devices

66,000



44,000



42,000



40,000



39,000


Net additions (losses)

28,000



12,000



(26,000)



(12,000)



(19,000)


Feature phones

(8,000)



(8,000)



(10,000)



(11,000)



(11,000)


Smartphones

8,000



11,000



(10,000)



13,000



9,000


Connected devices

28,000



9,000



(6,000)



(14,000)



(17,000)


ARPU1

$

47.10



$

46.24



$

47.23



$

46.57



$

46.16


ARPA2

$

123.27



$

120.70



$

122.92



$

120.99



$

119.87


Churn rate3

1.06

%


0.89

%


1.21

%


1.38

%


1.38

%

Handsets

0.88

%


0.71

%


0.95

%


1.11

%


1.09

%

Connected devices

2.35

%


2.24

%


3.11

%


3.44

%


3.44

%

Prepaid










Total at end of period

506,000



496,000



494,000



506,000



510,000


Gross additions

65,000



62,000



57,000



63,000



70,000


Net additions (losses)

11,000



2,000



(12,000)



(3,000)



9,000


ARPU1

$

35.45



$

34.89



$

34.07



$

34.11



$

34.35


Churn rate3

3.59

%


4.05

%


4.67

%


4.40

%


4.03

%

Total connections at end of period4

4,962,000



4,919,000



4,903,000



4,941,000



4,957,000


Market penetration at end of period










Consolidated operating population

31,314,000



31,292,000



31,292,000



30,740,000



31,310,000


Consolidated operating penetration5

16

%


16

%


16

%


16

%


16

%

Capital expenditures (millions)

$

216



$

168



$

236



$

243



$

170


Total cell sites in service

6,758



6,673



6,629



6,578



6,554


Owned towers

4,246



4,208



4,184



4,166



4,123




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.

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.

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.

Includes reseller and other connections.

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

9/30/2020


6/30/2020


3/31/2020


12/31/2019


9/30/2019

TDS Telecom










Wireline










Residential connections










Voice1

260,000



261,800



259,100



262,100



266,100


Broadband2

260,700



255,100



242,700



241,300



242,200


Video3

62,300



61,400



59,000



58,500



57,300


Wireline residential connections

583,000



578,300



560,700



561,900



565,600












Total residential revenue per connection4

$

51.45



$

49.73



$

50.12



$

49.11



$

49.02












Commercial connections










Voice1

109,400



112,400



114,400



117,800



121,200


Broadband2

20,800



20,700



20,500



20,400



20,600


managedIP5

114,900



115,500



118,300



121,200



124,500


Video3

200



200



100



100



400


Wireline commercial connections

245,400



248,700



253,400



259,600



266,600












Total Wireline connections

828,400



827,000



814,200



821,500



832,300












Cable










Cable residential and commercial connections










Broadband6

206,200



203,700



196,800



193,500



174,900


Video7

101,800



103,400



105,100



106,600



98,000


Voice8

67,700



69,000



68,900



69,500



63,900


managedIP5

1,800



1,800



1,400



1,300



1,200


Total Cable connections

377,400



378,000



372,300



370,900



338,000
























Numbers may not foot due to rounding.



The individual circuits connecting a customer to Wireline's central office facilities that provide voice services.

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

The number of Wireline customers provided video services.

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.

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

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

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.

Billable number of lines into a building for voice services.

 

TDS Telecom


Capital Expenditures (Unaudited)


Quarter Ended

9/30/2020


6/30/2020


3/31/2020


12/31/2019


9/30/2019


(Dollars in millions)











Wireline

$

74



$

58



$

39


$

98



$

61



Cable

18



17



15


26



20



Total TDS Telecom

$

92



$

75



$

54


$

124



$

81






 Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)






Three Months Ended
September 30,


Nine Months Ended
September 30,


2020


2019


2020
vs. 2019


2020


2019


2020
vs. 2019

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












Operating revenues












UScellular

$

1,027



$

1,031




$

2,964



$

2,970



TDS Telecom

247



231



7

%


728



695



5

%

All Other1

50



59



(16)

%


157



175



(10)

%


1,324



1,321




3,849



3,840



Operating expenses












UScellular












Expenses excluding depreciation, amortization and accretion

795



823



(3)

%


2,266



2,319



(2)

%

Depreciation, amortization and accretion

161



181



(11)

%


516



524



(2)

%

(Gain) loss on asset disposals, net

6



5



15

%


14



13



10

%

(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






N/M


962



1,011



(5)

%


2,796



2,855



(2)

%

TDS Telecom












Expenses excluding depreciation, amortization and accretion

169



162



4

%


488



467



4

%

Depreciation, amortization and accretion

49



50




152



150



2

%

(Gain) loss on asset disposals, net





65

%


1



(7)



N/M


219



212



3

%


641



609



5

%

All Other1












Expenses excluding depreciation and amortization

50



62



(19)

%


157



182



(13)

%

Depreciation and amortization

7



6



(26)

%


17



23



(24)

%

(Gain) loss on asset disposals, net



1



(96)

%




(1)



71

%


56



69



(20)

%


174



205



(14)

%

Total operating expenses

1,237



1,292



(4)

%


3,611



3,669



(2)

%

Operating income (loss)












UScellular

65



20



N/M


168



115



46

%

TDS Telecom

28



20



44

%


87



86



2

%

All Other1

(6)



(11)



45

%


(17)



(30)



39

%


87



29



N/M


238



171



39

%

Investment and other income (expense)












Equity in earnings of unconsolidated entities

48



44



10

%


138



129



7

%

Interest and dividend income

4



7



(49)

%


12



24



(52)

%

Gain (loss) on investments

3





N/M


3





N/M

Interest expense

(43)



(42)



(1)

%


(119)



(128)



8

%

Other, net





(60)

%


(1)





(58)

%

Total investment and other income

12



9



38

%


33



25



35

%

Income before income taxes

99



38



N/M


271



196



38

%

Income tax expense

6



15



(61)

%


17



64



(73)

%

Net income

93



23



N/M


254



132



92

%

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

15



5



N/M


42



22



87

%

Net income attributable to TDS shareholders

$

78



$

18



N/M


$

212



$

110



93

%













Basic weighted average shares outstanding

114



115




114



114



Basic earnings per share attributable to TDS shareholders

$

0.68



$

0.15



N/M


$

1.85



$

0.96



93

%













Diluted weighted average shares outstanding

115



116




115



116



Diluted earnings per share attributable to TDS shareholders

$

0.66



$

0.15



N/M


$

1.81



$

0.93



94

%











































N/M - Percentage change not meaningful.


Numbers may not foot due to rounding.



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

 

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)



Nine Months Ended
September 30,


2020


2019

(Dollars in millions)




Cash flows from operating activities




Net income

$

254



$

132


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




Depreciation, amortization and accretion

685



697


Bad debts expense

55



80


Stock-based compensation expense

39



47


Deferred income taxes, net

217



23


Equity in earnings of unconsolidated entities

(138)



(129)


Distributions from unconsolidated entities

118



100


(Gain) loss on asset disposals, net

15



5


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



(1)


(Gain) loss on investments

(3)




Other operating activities

1



4


Changes in assets and liabilities from operations




Accounts receivable

26



(42)


Equipment installment plans receivable

13



(42)


Inventory

2



3


Accounts payable

95



(4)


Customer deposits and deferred revenues

(21)



(2)


Accrued taxes

(156)



37


Accrued interest

14



9


Other assets and liabilities

(50)



(43)


Net cash provided by operating activities

1,166



874






Cash flows from investing activities




Cash paid for additions to property, plant and equipment

(914)



(631)


Cash paid for licenses

(169)



(257)


Cash received from investments

1



29


Cash paid for investments

(1)



(11)


Cash received from divestitures and exchanges

1



32


Other investing activities

4



1


Net cash used in investing activities

(1,078)



(837)






Cash flows from financing activities




Issuance of long-term debt

675




Repayment of long-term debt

(8)



(16)


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

(3)



(6)


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

(11)



(8)


Repurchase of TDS Common Shares

(14)




Repurchase of UScellular Common Shares

(23)



(21)


Dividends paid to TDS shareholders

(58)



(57)


Payment of debt issuance costs

(23)



(1)


Distributions to noncontrolling interests

(2)



(3)


Other financing activities

1



9


Net cash provided by (used in) financing activities

534



(103)






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

622



(66)






Cash, cash equivalents and restricted cash




Beginning of period

474



927


End of period

$

1,096



$

861



 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


ASSETS






September 30, 2020


December 31, 2019

(Dollars in millions)




Current assets




Cash and cash equivalents

$

1,076



$

465


Accounts receivable, net

1,056



1,124


Inventory, net

164



169


Prepaid expenses

109



98


Income taxes receivable

226



36


Other current assets

39



29


Total current assets

2,670



1,921






Assets held for sale

19








Licenses

2,637



2,480






Goodwill

547



547






Other intangible assets, net

219



239






Investments in unconsolidated entities

508



488






Property, plant and equipment, net

3,727



3,527






Operating lease right-of-use assets

988



972






Other assets and deferred charges

580



607






Total assets

$

11,895



$

10,781


 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


LIABILITIES AND EQUITY






September 30, 2020


December 31, 2019

(Dollars in millions, except per share amounts)




Current liabilities




Current portion of long-term debt

$

3



$

10


Accounts payable

399



374


Customer deposits and deferred revenues

168



189


Accrued interest

24



11


Accrued taxes

63



41


Accrued compensation

107



121


Short-term operating lease liabilities

125



116


Other current liabilities

76



100


Total current liabilities

965



962






Deferred liabilities and credits




Deferred income tax liability, net

893



676


Long-term operating lease liabilities

938



931


Other deferred liabilities and credits

530



481






Long-term debt, net

2,970



2,316






Noncontrolling interests with redemption features

10



11






Equity




TDS shareholders' equity




Series A Common and Common Shares, par value $0.01 per share

1



1


Capital in excess of par value

2,479



2,468


Treasury shares, at cost

(478)



(479)


Accumulated other comprehensive loss

(7)



(9)


Retained earnings

2,809



2,672


Total TDS shareholders' equity

4,804



4,653






Noncontrolling interests

785



751






Total equity

5,589



5,404






Total liabilities and equity

$

11,895



$

10,781



 

Balance Sheet Highlights

(Unaudited)




September 30, 2020




TDS


TDS Corporate


Intercompany


TDS


UScellular


Telecom


& Other


Eliminations


Consolidated

(Dollars in millions)










Cash and cash equivalents

$

931



$

573



$

147



$

(575)



$

1,076












Licenses, goodwill and other intangible assets

$

2,628



$

766



$

9



$



$

3,403


Investment in unconsolidated entities

467



4



48



(11)



508



$

3,095



$

770



$

57



$

(11)



$

3,911












Property, plant and equipment, net

$

2,322



$

1,303



$

102



$



$

3,727












Long-term debt, net:










Current portion

$

2



$



$

1



$



$

3


Non-current portion

2,108



4



858





2,970



$

2,110



$

4



$

859



$



$

2,973



 

TDS Telecom Highlights

(Unaudited)














Three Months Ended
September 30,


Nine Months Ended
September 30,


2020


2019


2020
vs. 2019


2020


2019


2020
vs. 2019

(Dollars in millions)












Wireline












Operating revenues












Residential

$

90



$

83



8

%


$

260



$

245



6

%

Commercial

38



41



(8)

%


115



127



(9)

%

Wholesale

45



45



1

%


136



139



(2)

%

Total service revenues

173



169



2

%


511



512



Equipment and product sales





4

%


1



1



(30)

%


173



169



2

%


512



512



Operating expenses












Cost of services

69



68



2

%


197



195



1

%

Cost of equipment and products





(25)

%


1



1



(30)

%

Selling, general and administrative expenses

51



52



(3)

%


148



148



(1)

%

Expenses excluding depreciation, amortization and accretion

120



120




345



344



Depreciation, amortization and accretion

30



33



(8)

%


94



99



(5)

%

(Gain) loss on asset disposals, net





(70)

%




(8)



N/M


150



153



(2)

%


439



435



1

%

Operating income

$

23



$

16



42

%


$

73



$

78



(6)

%













Cable












Operating revenues












Residential

$

62



$

52



21

%


$

182



$

152



20

%

Commercial

12



10



13

%


34



32



9

%


74



62



19

%


216



184



18

%

Operating expenses












Cost of services

31



27



15

%


91



79



15

%

Selling, general and administrative expenses

18



15



23

%


52



44



18

%

Expenses excluding depreciation, amortization and accretion

49



42



18

%


143



124



16

%

Depreciation, amortization and accretion

20



17



15

%


59



51



15

%

(Gain) loss on asset disposals, net





N/M


1



1



(14)

%


69



59



17

%


202



175



15

%

Operating income (loss)

$

5



$

3



55

%


$

14



$

8



76

%













Total TDS Telecom operating income

$

28



$

20



44

%


$

87



$

86



2

%


N/M - Percentage change not meaningful.


Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.

Financial Measures and Reconciliations

(Unaudited)

Free Cash Flow



Three Months Ended
September 30,


Nine Months Ended
September 30,


2020


2019


2020


2019

(Dollars in millions)








Cash flows from operating activities (GAAP)

$

359



$

282



$

1,166



$

874


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

304



238



914



631


Free cash flow (Non-GAAP)1

$

55



$

44



$

252



$

243




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.

 

 

Cision View original content:http://www.prnewswire.com/news-releases/tds-reports-third-quarter-2020-results-301167486.html

SOURCE Telephone and Data Systems, Inc.

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