CHICAGO, July 31, 2015 /PRNewswire/ -- United States
Cellular Corporation (NYSE:USM) reported total operating revenues
of $975.7 million for the second
quarter of 2015, versus $957.8
million for the same period one year ago. Net income
attributable to U.S. Cellular shareholders and related diluted
earnings per share were $19.4 million
and $0.23, respectively, for the
second quarter of 2015, compared to $(18.8)
million and $(0.22),
respectively, in the comparable period one year ago.
"We had another encouraging quarter at U.S. Cellular, building
on the turnaround in customer growth that we achieved in 2014,"
said Kenneth R. Meyers, U.S.
Cellular president and CEO. "We grew our postpaid customer base and
continued to drive churn lower, and we significantly increased
operating cash flow. We are pleased with the strong adoption
of shared data plans and increasing number of devices per
account.
"We are focused on continuing to grow our customer base and
increasing revenue and operating cash flow in 2015 by offering
innovative services and exciting devices that run on our
high-quality network. Our 4G LTE network will cover 98
percent of customers by the end of the year."
2015 Estimated Results
U.S. Cellular's estimates of full-year 2015 results are shown
below. Such estimates represent management's view as of
July 31, 2015. 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.
|
|
2015 Estimated
Results
|
|
|
Current
|
|
Previous
|
|
(Dollars in
millions)
|
|
|
|
|
|
Total operating
revenues
|
$4,000-$4,100
|
|
$4,000-$4,200
|
|
Operating cash flow
(1)
|
$440-$540
|
|
$400-$500
|
|
Adjusted EBITDA
(1)
|
$600-$700
|
|
$580-$680
|
|
Capital
expenditures
|
Approx.
$600
|
|
Unchanged
|
|
|
|
(1)
|
Operating cash flow
is defined as net income, adjusted for the items set forth in the
reconciliation below. Adjusted EBITDA is defined as net
income, adjusted for the items set forth in the reconciliation
below. 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, U.S. Cellular may exclude
other items from Operating cash flow and/or Adjusted EBITDA if such
items help reflect operating results on a more comparable basis.
U.S. Cellular 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. U.S. Cellular
believes Operating cash flow and Adjusted EBITDA are useful
measures of U.S. Cellular's operating results before significant
recurring non-cash charges, gains and losses, and other items as
indicated below. The following tables provide a reconciliation to
Operating cash flow and Adjusted EBITDA for 2015 estimated results,
actual results for the six months ended June 30, 2015 and 2014
actual results:
|
|
|
|
|
|
|
|
Actual
Results
|
|
|
|
|
2015
Estimated
Results
(2)
|
|
|
Six Months Ended
June 30, 2015
|
|
|
Year
Ended
December 31,
2014
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
|
|
N/A
|
|
$
|
185
|
|
$
|
(47)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
N/A
|
|
|
121
|
|
|
(12)
|
|
Income (loss)
before income taxes (GAAP)
|
|
$
|
165-265
|
|
$
|
306
|
|
$
|
(59)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
80
|
|
|
40
|
|
|
57
|
|
Depreciation,
amortization and accretion
expense
|
|
|
600
|
|
|
298
|
|
|
606
|
|
EBITDA
|
|
$
|
845-945
|
|
$
|
643
|
|
$
|
605
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale
of business and other exit
costs, net
|
|
|
(115)
|
|
|
(113)
|
|
|
(33)
|
|
(Gain) loss on
license sales and exchanges,
net
|
|
|
(145)
|
|
|
(123)
|
|
|
(113)
|
|
(Gain) loss on assets
disposals, net
|
|
|
15
|
|
|
10
|
|
|
21
|
|
Adjusted
EBITDA
|
|
$
|
600-700
|
|
$
|
417
|
|
$
|
480
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
|
|
(125)
|
|
|
(70)
|
|
|
(130)
|
|
Interest and dividend
income
|
|
|
(35)
|
|
|
(17)
|
|
|
(12)
|
|
Operating cash flow
(3)
|
|
$
|
440-540
|
|
$
|
330
|
|
$
|
338
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Totals may not
foot due to rounding differences.
|
|
|
|
(2)
|
In providing 2015
Estimated Results, U.S. Cellular has not completed the above
reconciliation to net income because it does not provide guidance
for income taxes. U.S. Cellular believes that the impact of income
taxes cannot be reasonably predicted; therefore, the company is
unable to provide such guidance. Accordingly, a reconciliation to
net income is not available without unreasonable effort.
|
|
(3)
|
A reconciliation of
Operating cash flow (Non-GAAP) to Operating income (GAAP) for June
30, 2015 actual results can be found on the company's website at
investors.uscellular.com.
|
Conference Call Information
U.S. Cellular will hold a conference call on July 31, 2015 at 9:30 a.m.
Central Time.
- Access the live call on the Events & Presentation page of
investors.uscellular.com or at
https://www.webcaster4.com/Webcast/Page/1145/9684 .
- 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 4.8 million customers in 23
states. The Chicago-based company
had 6,500 full- and part-time associates as of June 30, 2015. At the end of the second quarter
of 2015, Telephone and Data Systems, Inc. owned 84 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: 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 overall
economy; competition; 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
U.S. Cellular debt securities by accredited ratings organizations;
industry consolidation; advances in telecommunications technology;
uncertainty of access to the capital markets; 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. 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
("SEC"), which are incorporated by reference
herein.
|
United States
Cellular Corporation
|
|
Summary Operating
Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Quarter Ended
|
6/30/2015
|
|
3/31/2015
|
|
12/31/2014
|
|
9/30/2014
|
|
6/30/2014
|
|
Retail
Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at end of
period
|
|
4,324,000
|
|
|
4,307,000
|
|
|
4,298,000
|
|
|
4,200,000
|
|
|
4,148,000
|
|
|
Gross
additions
|
|
191,000
|
|
|
200,000
|
|
|
302,000
|
|
|
251,000
|
|
|
190,000
|
|
|
Net additions
(losses)
|
|
17,000
|
|
|
9,000
|
|
|
98,000
|
|
|
52,000
|
|
|
(26,000)
|
|
|
ARPU (1)
|
$
|
53.62
|
|
$
|
54.87
|
|
$
|
56.51
|
|
$
|
56.37
|
|
$
|
56.82
|
|
|
ARPA (2)
|
$
|
133.85
|
|
$
|
134.94
|
|
$
|
136.13
|
|
$
|
132.99
|
|
$
|
131.95
|
|
|
Churn rate
(3)
|
|
1.3%
|
|
|
1.5%
|
|
|
1.6%
|
|
|
1.6%
|
|
|
1.7%
|
|
|
Smartphone
penetration (4)
|
|
69.1%
|
|
|
66.9%
|
|
|
64.8%
|
|
|
61.7%
|
|
|
58.4%
|
|
Prepaid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total at end of
period
|
|
368,000
|
|
|
360,000
|
|
|
348,000
|
|
|
350,000
|
|
|
352,000
|
|
|
Gross
additions
|
|
65,000
|
|
|
73,000
|
|
|
60,000
|
|
|
64,000
|
|
|
65,000
|
|
|
Net additions
(losses)
|
|
8,000
|
|
|
12,000
|
|
|
(2,000)
|
|
|
(2,000)
|
|
|
(4,000)
|
|
|
ARPU (1)
|
$
|
35.98
|
|
$
|
35.72
|
|
$
|
35.33
|
|
$
|
34.40
|
|
$
|
34.02
|
|
|
Churn rate
(3)
|
|
5.2%
|
|
|
5.8%
|
|
|
5.9%
|
|
|
6.3%
|
|
|
6.5%
|
|
Total customers at
end of period
|
|
4,779,000
|
|
|
4,775,000
|
|
|
4,760,000
|
|
|
4,674,000
|
|
|
4,653,000
|
|
Billed ARPU
(1)
|
$
|
51.29
|
|
$
|
52.29
|
|
$
|
53.63
|
|
$
|
53.24
|
|
$
|
53.36
|
|
Service revenue
ARPU (1)
|
$
|
57.55
|
|
$
|
58.01
|
|
$
|
60.10
|
|
$
|
60.92
|
|
$
|
60.32
|
|
Smartphones sold
as a percent of total handsets sold
|
|
86.7%
|
|
|
85.7%
|
|
|
86.5%
|
|
|
80.8%
|
|
|
79.0%
|
|
Total
population
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated markets
(5)
|
|
45,737,000
|
|
|
45,737,000
|
|
|
50,906,000
|
|
|
54,817,000
|
|
|
54,817,000
|
|
|
Consolidated
operating markets (5)
|
|
31,814,000
|
|
|
31,814,000
|
|
|
31,729,000
|
|
|
31,729,000
|
|
|
31,729,000
|
|
Market penetration
at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated markets
(6)
|
|
10.4%
|
|
|
10.4%
|
|
|
9.4%
|
|
|
8.5%
|
|
|
8.5%
|
|
|
Consolidated
operating markets (6)
|
|
15.0%
|
|
|
15.0%
|
|
|
15.0%
|
|
|
14.7%
|
|
|
14.7%
|
|
Capital
expenditures (000s)
|
$
|
133,666
|
|
$
|
66,460
|
|
$
|
181,655
|
|
$
|
142,452
|
|
$
|
143,927
|
|
Total cell sites
in service
|
|
6,223
|
|
|
6,219
|
|
|
6,220
|
|
|
6,209
|
|
|
6,183
|
|
Owned towers
(7)
|
|
3,940
|
|
|
3,936
|
|
|
4,280
|
|
|
4,487
|
|
|
4,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Average Revenue Per
User ("ARPU") metrics are calculated by dividing a revenue base by
an average number of customers by the number of months in the
period. These revenue bases and customer populations are
shown below:
|
|
|
|
a.
|
Postpaid ARPU
consists of total postpaid service revenues and postpaid
customers.
|
|
|
|
b.
|
Prepaid ARPU consists
of total prepaid service revenues and prepaid customers.
|
|
|
|
c.
|
Billed ARPU consists
of total postpaid, prepaid and reseller service revenues and
postpaid, prepaid and reseller customers.
|
|
|
|
d.
|
Service revenue ARPU
consists of total postpaid, prepaid and reseller service revenues,
inbound roaming and other service revenues and postpaid, prepaid
and reseller customers.
|
|
(2)
|
Average Revenue Per
Account ("ARPA") metric is calculated by dividing total postpaid
service revenues by the average number of postpaid accounts by the
number of months in the period.
|
|
(3)
|
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.
|
|
(4)
|
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 handset
customers.
|
|
(5)
|
The decrease in the
population of Consolidated markets is due primarily to the license
exchange transactions of certain non-operating licenses in North
Carolina in December 2014 and Illinois and Indiana in March 2015.
Total Population is used only to calculate market penetration of
consolidated markets and consolidated operating markets,
respectively. See footnote (6) below.
|
|
(6)
|
Market penetration is
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. The increase in consolidated markets penetration is
due primarily to a lower denominator as a result of the license
divestitures described in footnote (5) above.
|
|
(7)
|
During the quarters
ended March 31, 2015 and December 31, 2014, sold 359 and 236
towers, respectively, in divested markets.
|
|
United States
Cellular Corporation
|
|
Consolidated
Statement of Operations Highlights
|
|
Three Months Ended
June 30,
|
|
(Unaudited, dollars
and shares in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Amount
|
|
Percent
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$
|
824,373
|
|
$
|
843,473
|
|
$
|
(19,100)
|
|
(2)%
|
|
Equipment
sales
|
|
151,294
|
|
|
114,300
|
|
|
36,994
|
|
32%
|
|
|
Total operating
revenues
|
|
975,667
|
|
|
957,773
|
|
|
17,894
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and accretion reported below)
|
|
196,276
|
|
|
187,131
|
|
|
9,145
|
|
5%
|
|
Cost of equipment
sold
|
|
253,671
|
|
|
271,978
|
|
|
(18,307)
|
|
(7)%
|
|
Selling, general and
administrative
|
|
362,971
|
|
|
404,252
|
|
|
(41,281)
|
|
(10)%
|
|
Depreciation,
amortization and accretion
|
|
150,581
|
|
|
148,337
|
|
|
2,244
|
|
2%
|
|
(Gain) loss on asset
disposals, net
|
|
5,399
|
|
|
6,893
|
|
|
(1,494)
|
|
(22)%
|
|
(Gain) loss on sale
of business and other exit costs, net
|
|
(1,705)
|
|
|
(10,511)
|
|
|
8,806
|
|
84%
|
|
(Gain) loss on
license sales and exchanges, net
|
|
(25)
|
|
|
–
|
|
|
(25)
|
|
|
|
|
Total operating
expenses
|
|
967,168
|
|
|
1,008,080
|
|
|
(40,912)
|
|
(4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
8,499
|
|
|
(50,307)
|
|
|
58,806
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and
other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
|
35,584
|
|
|
33,120
|
|
|
2,464
|
|
7%
|
|
Interest and dividend
income
|
|
8,969
|
|
|
1,573
|
|
|
7,396
|
|
>100%
|
|
Interest
expense
|
|
(20,154)
|
|
|
(14,336)
|
|
|
(5,818)
|
|
(41)%
|
|
Other, net
|
|
91
|
|
|
100
|
|
|
(9)
|
|
(9)%
|
|
|
Total investment and
other income
|
|
24,490
|
|
|
20,457
|
|
|
4,033
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
32,989
|
|
|
(29,850)
|
|
|
62,839
|
|
>100%
|
|
Income tax expense
(benefit)
|
|
13,079
|
|
|
(10,399)
|
|
|
23,478
|
|
>100%
|
|
Net income
(loss)
|
|
19,910
|
|
|
(19,451)
|
|
|
39,361
|
|
>100%
|
|
Less: Net income
(loss) attributable to noncontrolling interests, net of tax
|
|
558
|
|
|
(662)
|
|
|
1,220
|
|
>100%
|
|
Net income (loss)
attributable to U.S. Cellular shareholders
|
$
|
19,352
|
|
$
|
(18,789)
|
|
$
|
38,141
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
84,293
|
|
|
84,341
|
|
|
(48)
|
|
-
|
|
Basic earnings
(loss) per share attributable to U.S. Cellular shareholders
|
$
|
0.23
|
|
$
|
(0.22)
|
|
$
|
0.45
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
84,892
|
|
|
84,341
|
|
|
551
|
|
1%
|
|
Diluted earnings
(loss) per share attributable to U.S. Cellular shareholders
|
$
|
0.23
|
|
$
|
(0.22)
|
|
$
|
0.45
|
|
>100%
|
|
United States
Cellular Corporation
|
|
Consolidated
Statement of Operations Highlights
|
|
Six Months Ended
June 30,
|
|
(Unaudited, dollars
and shares in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
|
2015
|
|
2014
|
|
Amount
|
|
Percent
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$
|
1,652,584
|
|
$
|
1,697,086
|
|
$
|
(44,502)
|
|
(3)%
|
|
Equipment
sales
|
|
288,328
|
|
|
186,498
|
|
|
101,830
|
|
55%
|
|
|
Total operating
revenues
|
|
1,940,912
|
|
|
1,883,584
|
|
|
57,328
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and accretion reported below)
|
|
386,953
|
|
|
367,738
|
|
|
19,215
|
|
5%
|
|
Cost of equipment
sold
|
|
491,972
|
|
|
542,452
|
|
|
(50,480)
|
|
(9)%
|
|
Selling, general and
administrative
|
|
731,939
|
|
|
799,816
|
|
|
(67,877)
|
|
(8)%
|
|
Depreciation,
amortization and accretion
|
|
297,666
|
|
|
316,090
|
|
|
(18,424)
|
|
(6)%
|
|
(Gain) loss on asset
disposals, net
|
|
9,650
|
|
|
8,827
|
|
|
823
|
|
9%
|
|
(Gain) loss on sale
of business and other exit costs, net
|
|
(113,182)
|
|
|
(17,411)
|
|
|
(95,771)
|
|
>(100)%
|
|
(Gain) loss on
license sales and exchanges, net
|
|
(122,898)
|
|
|
(91,446)
|
|
|
(31,452)
|
|
(34)%
|
|
|
Total operating
expenses
|
|
1,682,100
|
|
|
1,926,066
|
|
|
(243,966)
|
|
(13)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
258,812
|
|
|
(42,482)
|
|
|
301,294
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and
other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
|
70,055
|
|
|
70,195
|
|
|
(140)
|
|
-
|
|
Interest and dividend
income
|
|
16,535
|
|
|
2,457
|
|
|
14,078
|
|
>100%
|
|
Interest
expense
|
|
(40,118)
|
|
|
(29,198)
|
|
|
(10,920)
|
|
(37)%
|
|
Other, net
|
|
196
|
|
|
186
|
|
|
10
|
|
5%
|
|
|
Total investment and
other income
|
|
46,668
|
|
|
43,640
|
|
|
3,028
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
305,480
|
|
|
1,158
|
|
|
304,322
|
|
>100%
|
|
Income tax
expense
|
|
120,580
|
|
|
2,205
|
|
|
118,375
|
|
>100%
|
|
Net
income
|
|
184,900
|
|
|
(1,047)
|
|
|
185,947
|
|
>100%
|
|
Less: Net income
(loss) attributable to noncontrolling interests, net of tax
|
|
5,484
|
|
|
(1,740)
|
|
|
7,224
|
|
>100%
|
|
Net income
attributable to U.S. Cellular shareholders
|
$
|
179,416
|
|
$
|
693
|
|
$
|
178,723
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
84,168
|
|
|
84,277
|
|
|
(109)
|
|
-
|
|
Basic earnings per
share attributable to U.S.
Cellular shareholders
|
$
|
2.13
|
|
$
|
0.01
|
|
$
|
2.12
|
|
>100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
84,849
|
|
|
85,041
|
|
|
(192)
|
|
-
|
|
Diluted earnings
per share attributable to U.S. Cellular shareholders
|
$
|
2.11
|
|
$
|
0.01
|
|
$
|
2.10
|
|
>100%
|
|
United States
Cellular Corporation
|
|
Consolidated
Balance Sheet Highlights
|
|
(Unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
362,282
|
|
$
|
211,513
|
|
Accounts receivable
from customers and others
|
|
562,468
|
|
|
556,958
|
|
Inventory,
net
|
|
135,401
|
|
|
267,068
|
|
Prepaid
expenses
|
|
73,319
|
|
|
59,744
|
|
Net deferred income
tax asset
|
|
77,969
|
|
|
93,058
|
|
Other current
assets
|
|
18,144
|
|
|
90,834
|
|
|
|
1,229,583
|
|
|
1,279,175
|
|
|
|
|
|
|
|
|
Assets held for
sale
|
|
22,203
|
|
|
107,055
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
Licenses
|
|
1,827,656
|
|
|
1,443,438
|
|
Goodwill
|
|
369,596
|
|
|
370,151
|
|
Investments in
unconsolidated entities
|
|
325,857
|
|
|
283,014
|
|
|
|
2,523,109
|
|
|
2,096,603
|
|
|
|
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
|
|
In service and under
construction
|
|
7,420,889
|
|
|
7,458,740
|
|
Less: Accumulated
depreciation
|
|
4,795,074
|
|
|
4,730,523
|
|
|
|
2,625,815
|
|
|
2,728,217
|
|
|
|
|
|
|
|
|
Other assets and
deferred charges
|
|
195,909
|
|
|
276,218
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
6,596,619
|
|
$
|
6,487,268
|
|
United States
Cellular Corporation
|
|
Consolidated
Balance Sheet Highlights
|
|
(Unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
Current
liabilities
|
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
57
|
|
$
|
46
|
|
Accounts
payable
|
|
|
|
|
|
|
|
Affiliated
|
|
11,892
|
|
|
9,774
|
|
|
Trade
|
|
274,844
|
|
|
306,845
|
|
Customer deposits and
deferred revenues
|
|
280,715
|
|
|
287,562
|
|
Accrued
taxes
|
|
97,537
|
|
|
36,652
|
|
Accrued
compensation
|
|
54,533
|
|
|
66,162
|
|
Other current
liabilities
|
|
108,996
|
|
|
149,853
|
|
|
|
|
828,574
|
|
|
856,894
|
|
|
|
|
|
|
|
|
|
Liabilities held
for sale
|
|
–
|
|
|
20,934
|
|
|
|
|
|
|
|
|
|
Deferred
liabilities and credits
|
|
|
|
|
|
|
Net deferred income
tax liability
|
|
827,339
|
|
|
859,867
|
|
Other deferred
liabilities and credits
|
|
290,302
|
|
|
284,002
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
1,151,999
|
|
|
1,151,819
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests with redemption features
|
|
1,178
|
|
|
1,150
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
U.S. Cellular
shareholders' equity
|
|
|
|
|
|
|
Series A Common and
Common Shares, par value $1 per share
|
|
88,074
|
|
|
88,074
|
|
Additional paid-in
capital
|
|
1,484,753
|
|
|
1,472,558
|
|
Treasury
shares
|
|
(157,795)
|
|
|
(169,139)
|
|
Retained
earnings
|
|
2,072,000
|
|
|
1,910,498
|
|
|
Total U.S. Cellular
shareholders' equity
|
|
3,487,032
|
|
|
3,301,991
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
10,195
|
|
|
10,611
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
3,497,227
|
|
|
3,312,602
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
6,596,619
|
|
$
|
6,487,268
|
|
United States
Cellular Corporation
|
|
Consolidated
Statement of Cash Flows
|
|
Six Months Ended
June 30,
|
|
(Unaudited, dollars
in thousands)
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
184,900
|
|
$
|
(1,047)
|
|
Add (deduct)
adjustments to reconcile net income to cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and accretion
|
|
297,666
|
|
|
316,090
|
|
|
|
Bad debts
expense
|
|
51,973
|
|
|
49,083
|
|
|
|
Stock-based
compensation expense
|
|
11,913
|
|
|
10,560
|
|
|
|
Deferred income
taxes, net
|
|
(16,549)
|
|
|
(13,267)
|
|
|
|
Equity in earnings of
unconsolidated entities
|
|
(70,055)
|
|
|
(70,195)
|
|
|
|
Distributions from
unconsolidated entities
|
|
27,214
|
|
|
65,565
|
|
|
|
(Gain) loss on asset
disposals, net
|
|
9,650
|
|
|
8,827
|
|
|
|
(Gain) loss on sale
of business and other exit costs, net
|
|
(113,182)
|
|
|
(17,411)
|
|
|
|
(Gain) loss on
license sales and exchanges, net
|
|
(122,898)
|
|
|
(91,446)
|
|
|
|
Noncash interest
expense
|
|
795
|
|
|
540
|
|
|
|
Other operating
activities
|
|
(387)
|
|
|
57
|
|
Changes in assets and
liabilities from operations
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
4,669
|
|
|
79,148
|
|
|
|
Equipment installment
plans receivable
|
|
(65,124)
|
|
|
(47,971)
|
|
|
|
Inventory
|
|
131,667
|
|
|
38,329
|
|
|
|
Accounts
payable
|
|
25,404
|
|
|
(36,600)
|
|
|
|
Customer deposits and
deferred revenues
|
|
(7,284)
|
|
|
10,793
|
|
|
|
Accrued
taxes
|
|
138,804
|
|
|
(20,280)
|
|
|
|
Accrued
interest
|
|
392
|
|
|
61
|
|
|
|
Other assets and
liabilities
|
|
(65,599)
|
|
|
(67,976)
|
|
|
|
|
|
423,969
|
|
|
212,860
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Cash used for
additions to property, plant and equipment
|
|
(259,235)
|
|
|
(262,397)
|
|
Cash paid for
acquisitions and licenses
|
|
(279,656)
|
|
|
(17,245)
|
|
Cash received from
divestitures and exchanges
|
|
281,573
|
|
|
125,905
|
|
Cash received for
investments
|
|
–
|
|
|
10,000
|
|
Other investing
activities
|
|
1,125
|
|
|
836
|
|
|
|
|
|
(256,193)
|
|
|
(142,901)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Common shares
reissued for benefit plans, net of tax payments
|
|
(1,570)
|
|
|
830
|
|
Common shares
repurchased
|
|
(2,302)
|
|
|
(8,298)
|
|
Payment of debt
issuance costs
|
|
(3,080)
|
|
|
–
|
|
Acquisition of towers
in common control transaction
|
|
(2,437)
|
|
|
–
|
|
Distributions to
noncontrolling interests
|
|
(5,872)
|
|
|
(482)
|
|
Other financing
activities
|
|
(1,746)
|
|
|
(16)
|
|
|
|
|
|
(17,007)
|
|
|
(7,966)
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
150,769
|
|
|
61,993
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
Beginning of
period
|
|
211,513
|
|
|
342,065
|
|
End of
period
|
$
|
362,282
|
|
$
|
404,058
|
|
United States
Cellular Corporation
|
|
Financial Measures
and Reconciliations
|
|
(Unaudited, dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
$
|
168,491
|
|
$
|
149,324
|
|
$
|
423,969
|
|
$
|
212,860
|
|
Add: Sprint Cost
Reimbursement
|
|
|
7,462
|
|
|
22,862
|
|
|
23,174
|
|
|
34,116
|
|
Less: Cash used
for additions to property, plant and equipment
|
|
|
143,156
|
|
|
152,899
|
|
|
259,235
|
|
|
262,397
|
|
Adjusted free cash
flow (1)
|
|
$
|
32,797
|
|
$
|
19,287
|
|
$
|
187,908
|
|
$
|
(15,421)
|
|
|
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(1)
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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. Adjusted 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 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.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/us-cellular-reports-second-quarter-2015-results-300121829.html
SOURCE United States Cellular Corporation