UNITED STATES CELLULAR CORPORATION CHICAGO, Nov. 8, 2017 /PRNewswire/ -- United States Cellular Corporation (NYSE:USM) reported total operating revenues of $963 million for the third quarter of 2017, versus $1,023 million for the same period one year ago. Net loss attributable to U.S. Cellular shareholders and related diluted loss per share were $299 million and $3.51, respectively, as a result of a $370 million ($309 million, net of tax) non-cash charge related to goodwill impairment recorded during the three months ended September 30, 2017. This compares to Net income attributable to U.S. Cellular shareholders and related diluted earnings per share of $17 million and $0.20, respectively, in the same period one year ago. Excluding this goodwill impairment charge, Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $10 million and $0.11, respectively, for the three months ended September 30, 2017.
"I am quite pleased with the operating results for the quarter as we continued to build on the momentum of the previous quarter, growing subscribers and increasing customer loyalty while tightly managing costs," said Kenneth R. Meyers, U.S. Cellular president and CEO. "We added postpaid handset subscribers and experienced another quarter of exceptionally low handset churn driven by greater adoption of our Total Plans and attractive promotions. Overall, we are competing effectively in the marketplace. Our subscriber results are strong evidence that customers value our Total Plans and love the quality of our award winning network. We believe we have found a good balance of promotional offers to get new customers into our stores, and we treat all of our customers exceptionally well with our customer-focused service orientation.
"Thanks to disciplined cost management, operating expenses were down across all major categories including cost of equipment sold and selling, general and administrative expenses, helping to offset lower average revenue per user (ARPU) caused by industry-wide price competition. Even as data traffic continues to grow, our engineers have worked hard to ensure our network efficiency is at the highest level and system operations expenses continue to decrease. These cost savings coupled with the growth in customers gave us reason to raise guidance on important metrics like Adjusted EBITDA. We increased guidance despite industry-wide pricing pressure which was a key driver to both the year-over-year decline in revenue and our decision to write off goodwill. In light of all the value the wireless industry is delivering to consumers and businesses every day, these pricing declines are unfathomable."
2017 Estimated Results
U.S. Cellular's current estimates of full-year 2017 results are shown below. Such estimates represent management's view as of November 8, 2017. Such forward?looking statements should not be assumed to be current as of any future date. U.S. Cellular 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.
2017 Estimated Results
Current Previous
(Dollars in
millions)
Total operating
revenues (1) $3,850-$3,950 $3,800-$4,000
Adjusted OIBDA
(1)(2)(3) $600-$700 $550-$650
Adjusted EBITDA (2) $740-$840 $700-$800
Capital
expenditures Approx. $500 Unchanged
The following table provides a reconciliation of Net Income (loss) to Adjusted OIBDA and Adjusted EBITDA for 2017 estimated results, actual results for the nine months ended September 30, 2017, and actual results for the year ended December 31, 2016. In providing 2017 estimated results, U.S. Cellular has not completed the below reconciliation to net income because it does not provide guidance for income taxes. Although potentially significant, U.S. Cellular believes that the impact of income taxes cannot be reasonably predicted; therefore, U.S. Cellular is unable to provide such guidance.
Actual Results
2017 Estimated Nine Months Year Ended
Ended September
Results 30, 2017 December 31,
2016
(Dollars in millions)
Net income (loss) (GAAP) N/A $(259) $49
Add back:
Income tax
expense
(benefit) N/A (19) 33
Income (loss) before income
taxes (GAAP) $ (350)-(250) $(278) $82
Add back:
Interest
expense 110 85 113
Depreciation,
amortization
and accretion
expense 610 460 618
EBITDA (Non-GAAP) $ 370-470 $267 $813
Add back (deduct):
Loss on
impairment of
goodwill 370 370 -
(Gain) loss on
sale of
business and
other exit
costs, net - (1) -
(Gain) loss on
license sales
and exchanges,
net (20) (19) (19)
(Gain) loss on
assets
disposals, net 20 14 22
Adjusted EBITDA (Non-GAAP) (2) $ 740-840 $631 $816
Deduct:
Equity in
earnings of
unconsolidated
entities 130 101 140
Interest and
dividend
income (1) 10 6 6
Other, net - 1 1
Adjusted OIBDA (Non-GAAP)
(1)(2)(3) $ 600-700 $523 $669
=== ======= ==== ====
Note: Totals may not foot due to rounding differences.
(1) Equipment installment plan interest
income is reflected as a component
of Service revenues consistent with
an accounting policy change
effective January 1, 2017. All
prior period numbers have been
recast to conform to this
accounting change.
(2) Adjusted EBITDA is defined as net
income adjusted for the items set
forth in the reconciliation above.
Adjusted OIBDA is defined as net
income adjusted for the items set
forth in the reconciliation above.
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. U.S. Cellular 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 U.S. Cellular's 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 U.S. Cellular's 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 Adjusted
EBITDA and Adjusted OIBDA to the
corresponding GAAP measure, Net
income (loss) or Income (loss)
before income taxes.
(3) A reconciliation of Adjusted OIBDA
(Non-GAAP) to Operating income
(GAAP) for September 30, 2017,
actual results can be found on U.S.
Cellular's website at
investors.uscellular.com.
Conference Call Information
U.S. Cellular will hold a conference call on November 8, 2017 at 9:30 a.m. Central Time.
-- Access the live call on the Events & Presentations page of
investors.uscellular.com or at
https://www.webcaster4.com/Webcast/Page/1145/23219.
-- 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.uscellular.com. The call will be archived on the Events & Presentations page of investors.uscellular.com.
About U.S. Cellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 5.1 million connections in 22 states. The Chicago-based company had 6,000 full- and part-time associates as of September 30, 2017. At the end of the third quarter of 2017, Telephone and Data Systems, Inc. owned 83 percent of U.S. Cellular. For more information about U.S. Cellular, visit uscellular.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: intense competition; the ability to execute U.S. Cellular's business strategy; uncertainties in U.S. Cellular's future cash flows and liquidity and access to the capital markets; the ability to make payments on U.S. Cellular indebtedness or comply with the terms of debt covenants; impacts of any pending acquisitions/divestitures/exchanges of properties and/or licenses, including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transactions and the financial impacts of such transactions; the ability of the company to successfully manage and grow its markets; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings of U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; pending and future litigation; changes in income tax rates, laws, regulations or rulings; changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of wireless devices, or the mix of services and products offered by U.S. Cellular. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by U.S. Cellular to furnish this press release to the Securities and Exchange Commission, which are incorporated by reference herein.
For more information about U.S. Cellular, visit:
U.S. Cellular: www.uscellular.com
United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended 9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
Retail Connections
Postpaid
Total at end of
period 4,513,000 4,478,000 4,455,000 4,482,000 4,484,000
Gross additions 191,000 174,000 146,000 187,000 174,000
Feature
phones 7,000 7,000 7,000 7,000 10,000
Smartphones 132,000 116,000 88,000 109,000 105,000
Connected
devices 52,000 51,000 51,000 71,000 59,000
Net additions
(losses) 35,000 23,000 (27,000) (2,000) (6,000)
Feature
phones (15,000) (15,000) (19,000) (21,000) (20,000)
Smartphones 44,000 34,000 (9,000) (4,000) (7,000)
Connected
devices 6,000 4,000 1,000 23,000 21,000
ARPU (1) $43.41 $44.60 $45.42 $45.19 $47.08
ABPU (Non-GAAP)(2) $54.71 $55.19 $55.82 $55.43 $56.79
ARPA (3) $116.36 $119.73 $121.88 $120.67 $125.31
ABPA (Non-GAAP)(4) $146.65 $148.15 $149.78 $148.02 $151.16
Churn rate (5) 1.16% 1.13% 1.29% 1.41% 1.34%
Handsets 0.96% 0.91% 1.08% 1.23% 1.22%
Connected
devices 2.33% 2.35% 2.55% 2.49% 2.04%
Prepaid
Total at end of
period 515,000 484,000 480,000 484,000 480,000
Gross additions 102,000 73,000 78,000 83,000 132,000
Net additions
(losses) 31,000 3,000 (4,000) 4,000 67,000
ARPU (1) $33.12 $33.52 $33.66 $33.25 $34.39
Churn rate (5) 4.75% 4.93% 5.69% 5.44% 4.84%
Total connections at end of period (6) 5,089,000 5,023,000 4,996,000 5,031,000 5,030,000
Market penetration at end of period
Consolidated operating
population 31,834,000 32,089,000 32,089,000 31,994,000 31,994,000
Consolidated operating
penetration (7) 16% 16% 16% 16% 16%
Capital expenditures (millions) $112 $84 $61 $171 $103
Total cell sites in service 6,436 6,421 6,417 6,415 6,374
Owned towers 4,051 4,044 4,041 4,040 4,015
(1) Average Revenue Per
User (ARPU) -
metric is
calculated by
dividing a revenue
base by an average
number of
connections and by
the number of
months in the
period. These
revenue bases and
connection
populations are
shown below:
Postpaid ARPU
consists of
total
postpaid
service
revenues and
postpaid
? connections.
Prepaid ARPU
consists of
total
prepaid
service
revenues and
prepaid
? connections.
(2) Average Billings Per
User (ABPU) - non-
GAAP metric is
calculated by
dividing total
postpaid service
revenues plus
equipment
installment plan
billings by the
average number of
postpaid
connections and by
the number of
months in the
period. Refer to
the end of this
release for a
reconciliation of
this metric to its
most comparable
GAAP metric.
(3) Average Revenue Per
Account (ARPA) -
metric is
calculated by
dividing total
postpaid service
revenues by the
average number of
postpaid accounts
and by the number
of months in the
period.
(4) Average Billings Per
Account (ABPA) -
non-GAAP 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. Refer to
the end of this
release for a
reconciliation of
this metric to its
most comparable
GAAP metric.
(5) Churn rate
represents the
percentage of the
connections that
disconnect service
each month. These
rates represent the
average monthly
churn rate for each
respective period.
(6) Includes reseller
and other
connections.
(7) 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.
United States Cellular Corporation
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended September 30,
2017 2016 2017 vs. 2016
Increase (Decrease)
(Dollars and shares in millions, except per share amounts)
Operating revenues
Service(1) $737 $784 $(47) (6)%
Equipment sales 226 239 (13) (5)%
Total operating revenues(1) 963 1,023 (60) (6)%
--- ----- ---
Operating expenses
System operations
(excluding
Depreciation,
amortization and
accretion reported
below) 185 196 (11) (6)%
Cost of equipment sold 261 280 (19) (7)%
Selling, general and
administrative 350 370 (20) (5)%
Depreciation,
amortization and
accretion 153 155 (2) (2)%
Loss on impairment of
goodwill 370 - 370 N/M
(Gain) loss on asset
disposals, net 5 7 (2) (26)%
(Gain) loss on sale of
business and other
exit costs, net (1) - (1) N/M
(Gain) loss on license
sales and exchanges,
net - (7) 7 100%
Total operating expenses 1,323 1,001 322 32%
----- ----- ---
Operating income (loss)(1) (360) 22 (382) >(100)%
Investment and other income (expense)
Equity in earnings of
unconsolidated
entities 35 38 (3) (7)%
Interest and dividend
income(1) 2 1 1 68%
Interest expense (28) (28) - (2)%
Total investment and other income(1) 9 11 (2) (21)%
--- --- ---
Income (loss) before income taxes (351) 33 (384) >(100)%
Income tax expense
(benefit) (53) 15 (68) >(100)%
Net income (loss) (298) 18 (316) >(100)%
Less: Net income
(loss) attributable
to noncontrolling
interests, net of tax 1 1 - (9)%
Net income (loss) attributable to U.S. Cellular
shareholders $(299) $17 $(316) >(100)%
===== === =====
Basic weighted average shares outstanding 85 85 - -
Basic earnings (loss) per share attributable to
U.S. Cellular shareholders $(3.51) $0.20 $(3.71) >(100)%
====== ===== ======
Diluted weighted average shares outstanding 85 85 - -
Diluted earnings (loss) per share attributable to
U.S. Cellular shareholders $(3.51) $0.20 $(3.71) >(100)%
====== ===== ======
N/M - Percentage change not meaningful
(1) Equipment installment plan interest income
is reflected as a component of Service
revenues consistent with an accounting
policy change effective January 1, 2017.
All prior period numbers have been recast
to conform to this accounting change.
United States Cellular Corporation
Consolidated Statement of Operations Highlights
(Unaudited)
Nine Months Ended September 30,
2017 2016 2017 vs. 2016
Increase (Decrease)
(Dollars and shares in millions, except per
share amounts)
Operating revenues
Service(1) $2,223 $2,330 $(107) (5)%
Equipment sales 639 655 (16) (3)%
Total operating revenues(1) 2,862 2,985 (123) (4)%
----- ----- ----
Operating expenses
System
operations
(excluding
Depreciation,
amortization
and accretion
reported below) 549 572 (23) (4)%
Cost of
equipment sold 749 799 (50) (6)%
Selling, general
and
administrative 1,041 1,089 (48) (4)%
Depreciation,
amortization
and accretion 460 462 (2) -
Loss on
impairment of
goodwill 370 - 370 N/M
(Gain) loss on
asset
disposals, net 14 16 (2) (17)%
(Gain) loss on
sale of
business and
other exit
costs, net (1) - (1) >(100)%
(Gain) loss on
license sales
and exchanges,
net (19) (16) (3) (16)%
Total operating expenses 3,163 2,922 241 8%
----- ----- ---
Operating income (loss)(1) (301) 63 (364) >(100)%
Investment and other income (expense)
Equity in
earnings of
unconsolidated
entities 101 110 (9) (8)%
Interest and
dividend
income(1) 6 4 2 45%
Interest expense (85) (84) (1) (1)%
Other, net 1 - 1 (9)%
Total investment and other
income(1) 23 30 (7) (25)%
--- --- ---
Income (loss) before income taxes (278) 93 (371) >(100)%
Income tax
expense
(benefit) (19) 39 (58) >(100)%
Net income (loss) (259) 54 (313) >(100)%
Less: Net income
(loss)
attributable to
noncontrolling
interests, net
of tax 2 1 1 >100%
Net income (loss) attributable to
U.S. Cellular shareholders $(261) $53 $(314) >(100)%
===== === =====
Basic weighted average shares outstanding 85 85 - -
Basic earnings (loss) per share
attributable to U.S. Cellular
shareholders $(3.07) $0.63 $(3.70) >(100)%
====== ===== ======
Diluted weighted average shares outstanding 85 85 - -
Diluted earnings (loss) per share
attributable to U.S. Cellular
shareholders $(3.07) $0.63 $(3.70) >(100)%
====== ===== ======
N/M - Percentage change not meaningful
(1) Equipment installment plan interest income
is reflected as a component of Service
revenues consistent with an accounting
policy change effective January 1, 2017.
All prior period numbers have been recast
to conform to this accounting change.
United States Cellular Corporation
Consolidated Statement of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
2017 2016
(Dollars in millions)
Cash flows from operating activities
Net income (loss) $(259) $54
Add (deduct)
adjustments to
reconcile net income
(loss) to net cash
flows from operating
activities
Depreciation,
amortization
and accretion 460 462
Bad debts
expense 64 69
Stock-based
compensation
expense 21 19
Deferred income
taxes, net (73) 11
Equity in
earnings of
unconsolidated
entities (101) (110)
Distributions
from
unconsolidated
entities 85 55
Loss on
impairment of
goodwill 370 -
(Gain) loss on
asset
disposals, net 14 16
(Gain) loss on
sale of
business and
other exit
costs, net (1) -
(Gain) loss on
license sales
and exchanges,
net (19) (16)
Noncash
interest 1 1
Other operating
activities - (2)
Changes in assets and
liabilities from
operations
Accounts
receivable (16) 1
Equipment
installment
plans
receivable (164) (160)
Inventory 36 2
Accounts
payable (58) 45
Customer
deposits and
deferred
revenues (13) (41)
Accrued taxes 31 38
Accrued
interest 9 7
Other assets
and
liabilities 7 (36)
Net cash provided by
operating activities 394 415
Cash flows from investing activities
Cash paid for
additions to
property, plant and
equipment (252) (280)
Cash paid for licenses (189) (46)
Cash paid for
investments (50) -
Cash received from
divestitures and
exchanges 19 20
Federal Communications
Commission deposit - (143)
Net cash used in investing
activities (472) (449)
Cash flows from financing activities
Repayment of long-
term debt (9) (8)
Common shares reissued
for benefit plans,
net of tax payments 1 4
Common shares
repurchased - (2)
Payment of debt
issuance costs - (2)
Distributions to
noncontrolling
interests (2) (1)
Other financing
activities - 2
Net cash used in financing
activities (10) (7)
Net decrease in cash and cash equivalents (88) (41)
Cash and cash equivalents
Beginning of period 586 715
End of period $498 $674
United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
September 30, December 31,
2017 2016
(Dollars in millions)
Current assets
Cash and cash
equivalents $498 $586
Short-term
investments 50 -
Accounts
receivable
from customers
and others,
net 757 727
Inventory, net 102 138
Prepaid
expenses 76 84
Other current
assets 21 23
Total current assets 1,504 1,558
Assets held for sale 5 8
Licenses 2,225 1,886
Goodwill - 370
Investments in unconsolidated entities 429 413
Property, plant and equipment
In service and
under
construction 7,576 7,712
Less:
Accumulated
depreciation
and
amortization 5,313 5,242
Property, plant and
equipment, net 2,263 2,470
Other assets and deferred charges 354 405
--- ---
Total assets $6,780 $7,110
====== ======
United States Cellular Corporation
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
September 30, December 31,
2017 2016
(Dollars and shares in millions, except per share
amounts)
Current liabilities
Current portion
of long-term
debt $18 $11
Accounts payable
Affiliated 11 12
Trade 259 309
Customer deposits
and deferred
revenues 176 190
Accrued taxes 65 39
Accrued
compensation 68 73
Other current
liabilities 76 84
Total current liabilities 673 718
Deferred liabilities and credits
Deferred income
tax liability,
net 753 826
Other deferred
liabilities and
credits 321 302
Long-term debt, net 1,626 1,618
Noncontrolling interests with redemption features 1 1
Equity
U.S. Cellular shareholders' equity
Series A Common
and Common
Shares, par
value $1 per
share 88 88
Additional paid-
in capital 1,543 1,522
Treasury shares (120) (136)
Retained earnings 1,884 2,160
Total U.S. Cellular shareholders'
equity 3,395 3,634
Noncontrolling interests 11 11
--- ---
Total equity 3,406 3,645
Total liabilities and equity $6,780 $7,110
====== ======
United States Cellular Corporation
Financial Measures and Reconciliations
(Unaudited)
Free Cash Flow
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
(Dollars in millions)
Cash flows from operating
activities (GAAP) $174 $155 $394 $415
Less: Cash paid for additions
to property, plant and
equipment 96 102 252 280
--- --- --- ---
Free cash flow (Non-
GAAP) (1) $78 $53 $142 $135
=== === ==== ====
(1) Management
uses Free
cash flow as
a liquidity
measure and
it is
defined as
Cash flows
from
operating
activities
less Cash
paid for
additions to
property,
plant and
equipment.
Free cash
flow is a
non-GAAP
financial
measure
which U.S.
Cellular
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.
Net income (loss) excluding goodwill impairment charge
The following non-GAAP financial measures present certain information in the table below excluding the effect of the goodwill impairment charge and related tax effects. The goodwill impairment charge, which occurred in the third quarter of 2017, is being excluded in this presentation, as it is not related to the current operations of U.S. Cellular. U.S. Cellular believes these measures may be useful to investors and other users of its financial information when comparing the current period financial results with periods that were not impacted by such a charge.
Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(Dollars in millions,
except per share
amounts)
Net income (loss)
attributable to U.S.
Cellular shareholders
(GAAP) $(299) $17 $(261) $53
----- --- ----- ---
Adjustments:
Loss on impairment of goodwill 370 - 370 -
Tax benefit on impairment of
goodwill(1) (61) - (61) -
Total adjustments (Non-GAAP) 309 - 309 -
Net income attributable
to U.S. Cellular
shareholders excluding
goodwill impairment
charge (Non-GAAP) $10 $17 $48 $53
=== === === ===
Diluted earnings (loss)
per share attributable
to U.S. Cellular
shareholders (GAAP) $(3.51) $0.20 $(3.07) $0.63
Adjustments:
Adjustment to weighted average
diluted shares(2) 0.03 - 0.03 -
Loss on impairment of goodwill 4.30 - 4.31 -
Tax benefit on impairment of
goodwill(1) (0.71) - (0.71) -
Diluted earnings per
share attributable to
U.S. Cellular
shareholders excluding
goodwill impairment
charge (Non-GAAP) $0.11 $0.20 $0.56 $0.63
===== ===== ===== =====
Diluted weighted average
shares outstanding
(GAAP) 85 85 85 85
Adjustment to weighted average
diluted shares(2) 1 - 1 -
Adjusted diluted weighted
average shares (Non-
GAAP) 86 85 86 85
=== === === ===
(1) Tax benefit represents the amount associated
with the tax-deductible portion of the
loss on goodwill impairment.
(2) Adjustment to reflect the incremental shares
deemed anti-dilutive for GAAP diluted
earnings per share.
Postpaid ABPU and Postpaid ABPA
U.S. Cellular presents Postpaid ABPU and Postpaid ABPA to reflect the revenue shift from Service revenues to Equipment sales resulting from the increased adoption of equipment installment plans. Postpaid ABPU and Postpaid ABPA, as previously defined herein, are non-GAAP financial measures which U.S. Cellular believes are useful to investors and other users of its financial information in showing trends in both service and equipment sales revenues received from customers.
For the
Quarter
Ended 9/30/2017 6/30/2017 3/31/2017 12/31/2016 9/30/2016
(Dollars
and
connection
counts
in
millions)
Calculation
of
Postpaid
ARPU
-----------
Postpaid
service
revenues $586 $597 $608 $607 $635
Average
number
of
postpaid
connections 4.50 4.47 4.46 4.48 4.49
Number
of
months
in
period 3 3 3 3 3
Postpaid
ARPU (GAAP
metric) $43.41 $44.60 $45.42 $45.19 $47.08
=========
Calculation
of
Postpaid
ABPU
-----------
Postpaid
service
revenues $586 $597 $608 $607 $635
Equipment
installment
plan
billings 152 142 139 138 131
--- --- --- --- ---
Total
billings to
postpaid
connections $738 $739 $747 $745 $766
Average
number
of
postpaid
connections 4.50 4.47 4.46 4.48 4.49
Number
of
months
in
period 3 3 3 3 3
Postpaid
ABPU (Non-
GAAP
metric) $54.71 $55.19 $55.82 $55.43 $56.79
=========
Calculation
of
Postpaid
ARPA
-----------
Postpaid
service
revenues $586 $597 $608 $607 $635
Average
number
of
postpaid
accounts 1.68 1.66 1.66 1.68 1.69
Number
of
months
in
period 3 3 3 3 3
Postpaid
ARPA (GAAP
metric) $116.36 $119.73 $121.88 $120.67 $125.31
=========
Calculation
of
Postpaid
ABPA
-----------
Postpaid
service
revenues $586 $597 $608 $607 $635
Equipment
installment
plan
billings 152 142 139 138 131
--- --- --- --- ---
Total
billings to
postpaid
accounts $738 $739 $747 $745 $766
Average
number
of
postpaid
accounts 1.68 1.66 1.66 1.68 1.69
Number
of
months
in
period 3 3 3 3 3
Postpaid
ABPA (Non-
GAAP
metric) $146.65 $148.15 $149.78 $148.02 $151.16
=========
View original content:http://www.prnewswire.com/news-releases/us-cellular-reports-third-quarter-2017-results-300551836.html
SOURCE United States Cellular Corporation
