TELEPHONE AND DATA SYSTEMS, INC. CHICAGO, May 6, 2016 /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,243 million for the first quarter of 2016, versus $1,252 million for the comparable period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $8 million and $0.07, respectively, for the first quarter of 2016, compared to $146 million and $1.33, respectively, in the comparable period one year ago. Year-over-year comparisons are affected by pre-tax gains of $247 million ($155 million after-tax) from sales and exchanges of businesses and licenses in 2015.
"Building on the successes of 2015, our businesses started the year with a solid first quarter," said LeRoy T. Carlson Jr., TDS president and CEO. "U.S. Cellular grew its postpaid customer base and improved customer loyalty. TDS Telecom experienced growth in both IPTV and cable connections, and we continued to move forward in our broadband and hosted and managed services strategies.
"U.S. Cellular increased sales of smartphones and connected devices through offering competitive products and devices priced to offer the best value in the industry. We continue to see strong customer adoption of Equipment Installment Plans, which increased equipment sales revenues.
"TDS Telecom maintained the momentum of IPTV growth by adding new connections and increasing average revenue per connection. Our cable segment increased connections, generating higher revenue from both residential and commercial broadband services. Our hosted and managed services company, OneNeck IT Solutions, achieved growth in recurring service and equipment revenues as more companies and organizations selected OneNeck IT to outsource their IT needs."
2016 Estimated Results
Current estimates of full-year 2016 results for U.S. Cellular, TDS Telecom, and TDS, which are unchanged from the previous estimates, are shown below. Such estimates represent management's view as of May 6, 2016. Such forward-looking statements should not be assumed to be current as of any future date. TDS undertakes no duty to update such information, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from such estimated results.
2016 Estimated Results
U.S. Cellular TDS Telecom TDS(2)
Current Previous Current Previous Current Previous
(Dollars in
millions)
Total operating
revenues $3,900-$4,100 Unchanged $1,130-$1,180 Unchanged $5,040-$5,290 Unchanged
Operating cash
flow (1) $525-$650 Unchanged $270-$310 Unchanged $800-$965 Unchanged
Adjusted EBITDA
(1) $725-$850 Unchanged $270-$310 Unchanged $1,000-$1,165 Unchanged
Capital
expenditures Approx. $ 500 Unchanged Approx. $ 180 Unchanged Approx. $ 695 Unchanged
The following tables provide a reconciliation to Operating Cash Flow and Adjusted EBITDA for 2016 estimated results, and actual results for the three months ended March 31, 2016 and year ended December 31, 2015:
Estimated Results (3)
U.S. Cellular TDS Telecom TDS(2)
(Dollars in millions)
Net income (loss) (GAAP) N/A N/A N/A
Add back:
Income tax
expense
(benefit) N/A N/A N/A
Income (loss) before income
taxes (GAAP) $ 0-125 $ 40-80 $ (20)-145
--- ----- --- ----- --- --------
Add back:
Interest
expense 105 - 160
Depreciation,
amortization
and accretion
expense 600 230 840
EBITDA $ 705-830 $ 270-310 $ 980-1,145
--- ------- --- ------- --- ---------
Add back:
(Gain) loss on
sale of
business and
other exit
costs, net - - -
(Gain) loss on
license sales
and
exchanges,
net - - -
(Gain) loss on asset
disposals, net 20 - 20
--- --- ---
Adjusted EBITDA (1) $ 725-850 $ 270-310 $ 1,000-1,165
=== ======= === ======= === ===========
Deduct:
Equity in
earnings of
unconsolidated
entities 140 - 140
Interest and dividend income 60 - 60
--- --- ---
Operating cash flow (1)(4) $ 525-650 $ 270-310 $ 800-965
=== ======= === ======= === =======
Actual Results
Three Months Ended March 31, 2016 Year ended December 31, 2015
U.S. TDS TDS (2) U.S.
Cellular Cellular* TDS TDS (2)*
Telecom Telecom
(Dollars in millions)
Net income (loss) (GAAP) $9 $10 $10 $247 $46 $263
Add back:
Income tax
expense
(benefit) 11 7 13 156 35 172
Income (loss) before income taxes (GAAP) $20 $17 $23 $404 $81 $435
Add back:
Interest
expense 28 - 41 86 1 142
Depreciation,
amortization
and accretion
expense 153 58 212 606 228 844
EBITDA $201 $75 $276 $1,096 $310 $1,421
---- --- ---- ------ ---- ------
Add back:
(Gain) loss on
sale of
business and
other exit
costs, net - - - (114) (10) (136)
(Gain) loss on
license sales
and
exchanges,
net - - - (147) - (147)
(Gain) loss on
asset
disposals,
net 5 1 6 16 6 22
Adjusted EBITDA (1) $206 $76 $282 $852 $306 $1,160
==== === ==== ==== ==== ======
Deduct:
Equity in
earnings of
unconsolidated
entities 35 - 35 140 - 140
Interest and
dividend
income 13 1 14 37 2 39
Other, net 1 (1) - - - -
Operating cash flow (1)(4) $157 $76 $233 $675 $304 $981
==== === ==== ==== ==== ====
* Includes $58 million of revenue related to termination of the rewards points program.
Note: Totals may not foot due to rounding differences.
(1) Operating cash flow is defined as net income,
adjusted for the items set forth in the
reconciliation above. Adjusted EBITDA is
defined as net income, adjusted for the items
set forth in the reconciliation above.
Operating cash flow and Adjusted EBITDA exclude
these items in order to show operating results
on a more comparable basis from period to
period. From time to time, TDS may exclude other
items from Operating cash flow and/or Adjusted
EBITDA if such items help reflect operating
results on a more comparable basis. TDS does not
intend to imply that any such items that are
excluded are non-recurring, infrequent or
unusual; such items may occur in the future.
Operating cash flow and Adjusted EBITDA 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 as
indicators of the company's operating
performance or as alternatives to cash flows
from operating activities, determined in
accordance with GAAP, as indicators of cash
flows or as measures of liquidity. TDS believes
Operating cash flow and Adjusted EBITDA are
useful measures of TDS' operating results before
significant recurring non-cash charges, gains
and losses, and other items as indicated above.
(2) The TDS column includes U.S. Cellular, TDS
Telecom and also the impacts of consolidating
eliminations, corporate operations and non-
reportable segments, all of which are not
presented above.
(3) In providing 2016 Estimated Results, TDS has not
completed the above reconciliation to net income
because it does not provide guidance for income
taxes. TDS believes that the impact of income
taxes cannot be reasonably predicted; therefore,
the company is unable to provide such guidance.
(4) A reconciliation of Operating cash flow (Non-
GAAP) to operating income (GAAP) for March 31,
2016 actual results can be found on the
company's website at investors.tdsinc.com.
----------------------------------------------
Stock Repurchase Summary
TDS began repurchasing stock under its $250 million repurchase authorization on August 5, 2013. The following represents repurchases of TDS Common Shares.
Repurchase Period # Shares Cost (in
millions)
2016 (year-to-date through March
31, 2016) 111,700 $3
2015 (full year) - $ -
Total 111,700 $3
======= ===
Conference Call Information
TDS will hold a conference call on May 6, 2016 at 9:30 a.m. Central Time.
-- Access the live call on the Events & Presentations page of
investors.tdsinc.com or at
https://www.webcaster4.com/Webcast/Page/1145/14974
-- Access the call by phone at 877/407-8029 (US/Canada), no pass code
required.
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(TM) company, provides wireless; cable and wireline broadband, TV and voice; and hosted and managed services to approximately 6 million customers nationwide through its businesses, U.S. Cellular, TDS Telecom, OneNeck IT Solutions, and BendBroadband. Founded in 1969 and headquartered in Chicago, TDS employed 10,600 people as of March 31, 2016.
Visit www.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/divestures/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 overall economy; 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 afforded 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 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 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 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015
Retail Customers
Postpaid
Total at end of
period 4,454,000 4,409,000 4,341,000 4,324,000 4,307,000
Gross additions 215,000 240,000 200,000 191,000 200,000
Feature
phones 9,000 10,000 14,000 15,000 14,000
Smartphones 124,000 132,000 119,000 115,000 119,000
Connected
devices 82,000 98,000 67,000 61,000 67,000
Net additions
(losses) 45,000 68,000 17,000 17,000 9,000
Feature
phones (25,000) (25,000) (28,000) (26,000) (34,000)
Smartphones 20,000 23,000 6,000 7,000 3,000
Connected
devices 50,000 70,000 39,000 36,000 40,000
ARPU (1)(8) $48.13 $51.46 $58.12 $53.62 $54.87
ABPU (2)(8) $56.06 $58.57 $63.88 $58.08 $58.50
ARPA (3)(8) $125.36 $131.96 $147.00 $133.85 $134.94
ABPA (4)(8) $145.99 $150.19 $161.57 $144.99 $143.86
Churn rate (5) 1.28% 1.31% 1.41% 1.34% 1.48%
Smartphone
penetration (6) 75% 74% 72% 69% 67%
Prepaid
Total at end of
period 399,000 387,000 380,000 368,000 360,000
Gross additions 75,000 69,000 71,000 65,000 73,000
Net additions
(losses) 12,000 7,000 12,000 8,000 12,000
ARPU (1) $35.51 $35.54 $35.64 $35.98 $35.72
Churn rate (5) 5.37% 5.40% 5.24% 5.22% 5.76%
Total customers at end of period 4,926,000 4,876,000 4,807,000 4,779,000 4,775,000
Smartphones sold as a percent of total handsets sold 92% 91% 87% 87% 86%
Market penetration at end of period
Consolidated operating
population 31,994,000 31,967,000 31,814,000 31,814,000 31,814,000
Consolidated operating
penetration (7) 15% 15% 15% 15% 15%
Capital expenditures (millions) $79 $198 $135 $134 $66
Total cell sites in service 6,306 6,297 6,246 6,223 6,219
Owned towers 3,989 3,978 3,957 3,940 3,936
(1) Average Revenue
Per User ("ARPU")
are metrics
calculated by
dividing a
revenue base by
an average number
of customers and
by the number of
months in the
period. These
revenue bases and
customer
populations are
shown below:
Postpaid
ARPU
consists
of total
postpaid
service
revenues
and
postpaid
customers.
Prepaid
ARPU
consists
of total
prepaid
service
revenues
and
prepaid
customers.
(2) Average Billings
Per User ("ABPU")
metric is
calculated by
dividing total
postpaid service
revenues plus
equipment
installment plan
billings by the
average number of
postpaid
customers and by
the number of
months in the
period.
(3) Average Revenue
Per Account
("ARPA") metric
is calculated by
dividing total
postpaid service
revenue by the
average number of
postpaid accounts
and by the number
of months in the
period.
(4) Average Billings
Per Account
("ABPA") metric
is calculated by
dividing total
postpaid service
revenues plus
equipment
installment plan
billings by the
average number of
postpaid accounts
and by the number
of months in the
period.
(5) Churn metrics
represent the
percentage of the
postpaid or
prepaid customers
that disconnect
service each
month. These
metrics represent
the average
monthly postpaid
or prepaid churn
rate for each
respective
period.
(6) Smartphones
represent
wireless devices
which run on an
Android, Apple,
BlackBerry or
Windows Mobile
operating system,
excluding
connected
devices.
Smartphone
penetration is
calculated by
dividing postpaid
smartphone
customers by
total postpaid
handsets.
(7) Market penetration
is calculated by
dividing the
number of
wireless
customers at the
end of the period
by the total
population of
consolidated
operating markets
as estimated by
Nielsen.
(8) The quarter ended
September 30,
2015 results
include the
recognition of
$58 million in
revenue due to
the termination
of the awards
program.
TDS Telecom
Summary Operating Data (Unaudited)
Quarter Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015
TDS Telecom
Wireline
--------
Residential
connections
Voice (1) 318,400 319,800 325,900 329,000 333,400
Broadband (2) 229,100 228,500 231,600 231,200 229,400
IPTV (3) 38,300 34,400 30,300 27,900 25,600
Wireline residential connections 585,800 582,700 587,800 588,100 588,400
------- ------- ------- ------- -------
Total residential
revenue per
connection (4) $43.28 $41.24 $42.83 $42.10 $42.32
Commercial
connections
Voice (1) 167,400 171,500 176,700 181,800 187,500
Broadband (2) 22,000 22,400 23,000 23,700 24,300
managedIP (5) 148,500 147,100 145,900 145,100 143,200
Wireline commercial connections 337,900 341,000 345,600 350,600 355,000
------- ------- ------- ------- -------
Total Wireline
connections 923,700 923,700 933,400 938,700 943,400
Cable
-----
Cable Connections
Video (6) 104,600 106,800 108,300 109,100 109,700
Broadband (7) 121,700 117,100 114,600 112,300 112,200
Voice (7) 58,100 56,400 54,000 51,500 49,100
Cable connections 284,400 280,300 276,900 272,900 271,000
======= ======= ======= ======= =======
(1) The individual
circuit
connecting
customers to
TDS Telecom's
central office
facilities.
(2) The number of
customers
provided high-
capacity data
circuits via
various
technologies,
including DSL
and dedicated
internet
circuit
technologies.
(3) The number of
customers
provided video
services using
IP networking
technology.
(4) Total
residential
revenue per
connection is
calculated by
dividing the
average
monthly
residential
revenue for
the period by
the average
number of
residential
connections
for the
period.
(5) The number of
telephone
handsets, data
lines and IP
trunks
providing
communications
using IP
networking
technology.
(6) 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.
(7) Broadband and
voice
connections
reflect
billable
number of
lines into a
building for
high speed
data and voice
services,
respectively.
TDS Telecom
Capital Expenditures (millions)
Quarter
Ended 3/31/2016 12/31/2015 9/30/2015 6/30/2015 3/31/2015
Wireline $27 $50 $38 $32 $20
Cable 13 15 13 12 12
HMS 2 8 5 9 5
$42 $73 $56 $53 $37
=== === === === ===
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended March 31,
2016 2015 2016 vs. 2015
(Dollars and shares in millions, except per share amounts)
Operating revenues
U.S. Cellular $958 $965 $(7) (1)%
TDS Telecom 281 280 1 -
All Other (1) 4 7 (3) (51)%
1,243 1,252 (9) (1)%
----- ----- ---
Operating expenses
U.S. Cellular
Expenses
excluding
depreciation,
amortization
and accretion 801 798 3 -
Depreciation,
amortization
and accretion 153 147 6 4%
(Gain) loss on
asset
disposals, net 5 4 1 19%
(Gain) loss on
sale of
business and
other exit
costs, net - (111) 111 100%
(Gain) loss on
license sales
and exchanges,
net - (123) 123 N/M
959 715 244 34%
--- --- ---
TDS Telecom
Expenses
excluding
depreciation,
amortization
and accretion 205 201 4 2%
Depreciation,
amortization
and accretion 58 57 1 1%
(Gain) loss on
asset
disposals, net 1 1 - (14)%
264 259 5 2%
--- --- ---
All Other (1)
Expenses
excluding
depreciation
and
amortization 4 5 (1) (59)%
Depreciation
and
amortization 1 3 (2) (19)%
(Gain) loss on
sale of
business and
other exit
costs, net (2) - (13) 13 100%
5 (5) 10 >100%
--- --- ---
Total operating expenses 1,228 969 259 27%
----- --- ---
Operating income (loss)
U.S. Cellular (3) (1) 250 (251) >(100)%
TDS Telecom 17 21 (4) (21)%
All Other (1) (1) 12 (13) >(100)%
15 283 (268) (95)%
--- --- ----
Investment and other income (expense)
Equity in earnings
of unconsolidated
entities 35 35 - 2%
Interest and
dividend income 14 8 6 65%
Interest expense (41) (34) (7) (24)%
Total
investment and
other income 8 9 (1) (22)%
--- --- ---
Income before income taxes 23 292 (269) (92)%
Income tax expense
(benefit) 13 116 (103) (89)%
Net income 10 176 (166) (94)%
Less: Net income
attributable to
noncontrolling
interests, net of
tax 2 30 (28) (94)%
Net income attributable to TDS shareholders 8 146 (138) (94)%
TDS Preferred
dividend
requirement - - - -
Net income available to common shareholders $8 $146 $(138) (94)%
=== ==== =====
Basic weighted average shares outstanding 109 108 1 1%
Basic earnings per share attributable to TDS
shareholders $0.07 $1.35 $(1.28) (95)%
Diluted weighted average shares outstanding 110 109 1 1%
Diluted earnings per share attributable to
TDS shareholders $0.07 $1.33 $(1.26) (95)%
(1) Consists of
TDS
corporate,
intercompany
eliminations
and all
other
business
operations
not included
in the U.S.
Cellular and
TDS Telecom
segments.
(2) Compared to
U.S.
Cellular,
TDS
recognized
an
incremental
gain of $12
million on
the tower
sale as a
result of a
lower basis
in the
assets
disposed in
2015.
(3) Year-over-
year
comparisons
are affected
by gains of
$247 million
from sales
and
exchanges of
businesses
and licenses
in 2015.
N/M - Percentage change not meaningful
Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended March
31,
2016 2015
(Dollars in millions)
Cash flows from operating activities
Net income (loss) $10 $176
Add (deduct)
adjustments to
reconcile net income
to net cash flows
from operating
activities
Depreciation,
amortization
and accretion 212 207
Bad debts
expense 19 30
Stock-based
compensation
expense 9 8
Deferred
income taxes,
net 5 (47)
Equity in
earnings of
unconsolidated
entities (35) (35)
Distributions
from
unconsolidated
entities 14 13
(Gain) loss on
asset
disposals,
net 6 5
(Gain) loss on
sale of
business and
other exit
costs, net - (124)
(Gain) loss on
license sales
and
exchanges,
net - (123)
Noncash
interest
expense 1 1
Changes in assets and
liabilities from
operations
Accounts
receivable 20 21
Equipment
installment
plans
receivable (41) (36)
Inventory (1) 95
Accounts
payable 39 (14)
Customer
deposits and
deferred
revenues (6) 13
Accrued taxes 63 252
Accrued
interest 9 9
Other assets
and
liabilities (78) (96)
Net cash provided by
operating activities 246 355
--- ---
Cash flows from investing activities
Cash used for additions
to property, plant and
equipment (159) (166)
Cash paid for
acquisitions and
licenses - (281)
Cash received from
divestitures and
exchanges 2 274
Other investing
activities - 3
Net cash used in investing
activities (157) (170)
---- ----
Cash flows from financing activities
Repayment of long-term
debt (3) -
U.S. Cellular Common
Shares reissued for
benefit plans, net of
tax payments 1 -
Repurchase of TDS Common
Shares (3) -
Repurchase of U.S.
Cellular Common Shares (2) (2)
Dividends paid to TDS
shareholders (16) (15)
Payment of debt issuance
costs - (3)
Other financing
activities 3 (2)
Net cash provided by
financing activities (20) (22)
--- ---
Net increase in cash and cash equivalents 69 163
Cash and cash equivalents
Beginning of period 985 472
End of period $1,054 $635
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
March 31, December
31,
2016 2015
(Dollars in millions)
Current assets
Cash and cash equivalents $1,054 $985
Accounts receivable from customers
and others, net 792 803
Inventory, net 160 158
Prepaid expenses 130 112
Income taxes receivable 5 70
Other current assets 32 30
2,173 2,158
Assets held for sale 26 -
Licenses 1,818 1,844
Goodwill 766 766
Franchise rights 244 244
Other intangible
assets, net 43 47
Investments in
unconsolidated
entities 423 402
Property, plant and
equipment, net 3,679 3,764
Other assets and
deferred charges 211 197
--- ---
Total assets $9,383 $9,422
====== ======
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
March 31, December 31,
2016 2015
(Dollars in millions)
Current liabilities
Current portion
of long-term
debt $14 $14
Accounts payable 355 349
Customer deposits
and deferred
revenues 283 288
Accrued interest 21 12
Accrued taxes 36 41
Accrued
compensation 75 113
Other current
liabilities 106 127
890 944
Deferred liabilities and credits
Net deferred
income tax
liability 905 900
Other deferred
liabilities and
credits 441 433
Long-term debt 2,437 2,440
Noncontrolling interests with redemption features 2 1
Equity
TDS shareholders'
equity
Series A Common
and Common
Shares, par
value $.01 1 1
Capital in excess
of par value 2,372 2,365
Treasury shares,
at cost (726) (727)
Accumulated other
comprehensive
income (loss) - -
Retained earnings 2,479 2,487
Total TDS shareholders' equity 4,126 4,126
Preferred shares 1 1
Noncontrolling
interests 581 577
Total equity 4,708 4,704
Total liabilities and equity $9,383 $9,422
====== ======
Balance Sheet Highlights
(Unaudited)
March 31, 2016
U.S. TDS TDS
Corporate Intercompany TDS
Cellular Telecom & Other Eliminations Consolidated
(Dollars in millions)
Cash and cash
equivalents $772 $47 $235 $ - $1,054
Affiliated cash investments - 330 - (330) -
$772 $377 $235 $(330) $1,054
==== ==== ==== ===== ======
Licenses, goodwill and
other intangible
assets $2,178 $831 $(138) $ - $2,871
Investment in unconsolidated
entities 384 4 40 (5) 423
$2,562 $835 $(98) $(5) $3,294
====== ==== ==== === ======
Property, plant and
equipment, net $2,573 $1,082 $24 $ - $3,679
====== ====== === === === ======
Long-term debt:
Current portion $11 $ - $3 $ - $14
Non-current portion 1,626 1 810 - 2,437
$1,637 $1 $813 $ - $2,451
====== === ==== === === ======
TDS Telecom Highlights
(Unaudited)
Three Months Ended March 31,
2016 2015 2016 vs. 2015
(Dollars in millions)
Wireline
Operating revenues
Residential $76 $75 $1 2%
Commercial 54 56 (2) (4)%
Wholesale 43 45 (2) (5)%
Total
service
revenues 173 176 (3) (2)%
Equipment
sales - - - 19%
173 176 (3) (2)%
--- --- ---
Operating expenses
Cost of
services 62 62 - (1)%
Cost of
equipment
sold 1 1 - (8)%
Selling,
general and
administrative
expenses 48 46 2 6%
Depreciation,
amortization
and accretion 42 42 - (1)%
153 151 2 1%
--- --- ---
Operating
income $20 $25 $(5) (19)%
----------
Cable
Operating revenues
Residential $35 $35 $ - 1%
Commercial 10 9 1 10%
Total
service
revenues 45 44 1 3%
--- --- ---
Operating expenses
Cost of
services 22 20 2 12%
Selling,
general and
administrative
expenses 12 13 (1) (4)%
Depreciation,
amortization
and accretion 9 9 - 5%
(Gain) loss on
asset
disposals,
net 1 1 - (20)%
44 43 1 5%
--- --- ---
Operating
income $1 $1 $ - (56)%
---------- ---
HMS
Operating revenues
Service
revenues $29 $28 $1 2%
Equipment
sales 35 33 2 8%
64 61 3 5%
--- --- ---
Operating expenses
Cost of
services 21 20 1 6%
Cost of
equipment
sold 29 27 2 8%
Selling,
general and
administrative
expenses 11 13 (2) (16)%
Depreciation,
amortization
and accretion 7 6 1 13%
68 66 2 3%
--- --- ---
Operating
(loss) $(4) $(5) $1 21%
----------
Intercompany revenues $(1) $(1) $ - (47)%
Intercompany expenses (1) (1) - (47)%
--- --- ---
Total TDS Telecom operating
income $17 $21 $(4) (21)%
=== === ===
Telephone and Data Systems, Inc.
Financial Measures and Reconciliations
(Unaudited)
Three Months Ended
March 31,
2016 2015
(Dollars in
millions)
Cash flows from
operating
activities $246 $355
Less: Cash used for
additions to
property, plant
and equipment 159 166
--- ---
Free cash flow 87 189
Add: Sprint Cost
Reimbursement 2 16
Adjusted free cash flow
(1) $89 $205
=== ====
(1) Free cash flow is
defined as Cash
flows from
operating
activities less
Cash used for
additions to
property, plant
and equipment.
Adjusted free
cash flow is
defined as Cash
flows from
operating
activities
(which includes
cash outflows
related to the
Sprint
decommissioning),
as adjusted for
cash proceeds
from the Sprint
Cost
Reimbursement
(which are
included in Cash
flows from
investing
activities in
the Consolidated
Statement of
Cash Flows),
less Cash used
for additions to
property, plant
and equipment.
Sprint
decommissioning
and Sprint Cost
Reimbursement
are further
defined and
discussed in our
Annual Report on
Form 10-K for
the year ended
December 31,
2015. Free cash
flow and
Adjusted free
cash flow are
non-GAAP
financial
measures which
TDS believes may
be useful to
investors and
other users of
its financial
information in
evaluating the
amount of cash
generated by
business
operations
(including cash
proceeds from
the Sprint Cost
Reimbursement),
after Cash used
for additions to
property, plant
and equipment.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tds-reports-first-quarter-2016-results-300264313.html
SOURCE Telephone and Data Systems, Inc.
