CHICAGO, May 6, 2016 /PRNewswire/ -- United States
Cellular Corporation (NYSE:USM) reported total operating revenues
of $958 million for the first quarter
of 2016, versus $965 million for the
same period one year ago. Net income attributable to U.S. Cellular
shareholders and related diluted earnings per share were
$9 million and $0.10, respectively, for the first quarter of
2016, compared to $160 million and
$1.89, respectively, in the same
period one year ago. Year-over-year comparisons are affected
by pre-tax gains of $234 million
($145 million after-tax) from sales
and exchanges of businesses and licenses in 2015.
"We are off to a good start in 2016 with solid first quarter
results," said Kenneth R. Meyers,
U.S. Cellular president and CEO. "We continue to grow our customer
base and increase customer loyalty as evidenced by significantly
lower churn and higher customer satisfaction scores. Strong
customer engagement is foundational to our success and in order to
provide exceptional customer experiences, we must have engaged and
dedicated associates. We are proud that for the second year
in a row, U.S. Cellular earned a place on the Forbes 'America's
Best Employer's' list.
"We are pleased to see customer growth through higher sales of
data-centric devices, including smartphones and tablets. This
growth is being driven by the combination of competitive products
and services, our high-quality network and supported by exceptional
customer service.
"We continue to focus on improving our operating processes and
efficiency. Strong customer adoption of Equipment Installment
Plans drove down loss on equipment and our cost control initiatives
generated another quarter of lower expenses."
2016 Estimated Results
U.S. Cellular's current estimates of full-year 2016 results,
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. 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.
|
|
2016 Estimated
Results
|
|
|
Current
|
|
Previous
|
(Dollars in
millions)
|
|
|
|
|
Total operating
revenues
|
$3,900-$4,100
|
|
Unchanged
|
Operating cash flow
(1)
|
$525-$650
|
|
Unchanged
|
Adjusted EBITDA
(1)
|
$725-$850
|
|
Unchanged
|
Capital
expenditures
|
Approx.
|
$500
|
|
Unchanged
|
|
|
|
|
|
|
|
The following table provides 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:
|
|
|
|
|
|
|
|
Actual
Results
|
|
|
|
|
|
2016
Estimated
Results
(2)
|
|
|
Three Months Ended
March 31, 2016
|
|
|
Year
Ended
December 31,
2015*
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
|
|
N/A
|
|
$
|
9
|
|
$
|
247
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
N/A
|
|
|
11
|
|
|
156
|
Income (loss) before
income taxes (GAAP)
|
|
|
|
|
|
|
|
|
|
|
$
|
0-125
|
|
$
|
20
|
|
$
|
404
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
105
|
|
|
28
|
|
|
86
|
|
Depreciation,
amortization and accretion
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
600
|
|
|
153
|
|
|
606
|
EBITDA
|
|
$
|
705-830
|
|
$
|
201
|
|
$
|
1,096
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale
of business and other exit costs,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
–
|
|
|
(114)
|
|
(Gain) loss on
license sales and exchanges,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
–
|
|
|
–
|
|
|
(147)
|
|
(Gain) loss on assets
disposals, net
|
|
|
20
|
|
|
5
|
|
|
16
|
Adjusted EBITDA
(1)
|
|
$
|
725-850
|
|
$
|
206
|
|
$
|
852
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
|
|
|
|
|
|
|
|
|
|
|
|
140
|
|
|
35
|
|
|
140
|
|
Interest and dividend
income
|
|
|
60
|
|
|
13
|
|
|
37
|
Operating cash flow
(1)(3)
|
|
$
|
525-650
|
|
$
|
157
|
|
$
|
675
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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, 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 above.
|
(2)
|
In providing 2016
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 March
31, 2016 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 May 6, 2016 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/1145/14974.
- 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.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 4.9 million customers in 23
states. The Chicago-based company
had 6,500 full- and part-time associates as of March 31, 2016. At the end of the first quarter
of 2016, 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: 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 overall
economy; 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; 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, 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
|
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.
|
United States
Cellular Corporation
|
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
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
$
|
760
|
|
$
|
828
|
|
$
|
(68)
|
|
(8)%
|
|
Equipment
sales
|
|
198
|
|
|
137
|
|
|
61
|
|
45%
|
|
|
Total operating
revenues
|
|
958
|
|
|
965
|
|
|
(7)
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
System operations
(excluding Depreciation, amortization and accretion reported below)
|
|
|
|
|
|
|
|
|
|
|
|
|
184
|
|
|
191
|
|
|
(7)
|
|
(4)%
|
|
Cost of equipment
sold
|
|
256
|
|
|
238
|
|
|
18
|
|
8%
|
|
Selling, general and
administrative
|
|
361
|
|
|
369
|
|
|
(8)
|
|
(2)%
|
|
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
|
|
|
Total operating
expenses
|
|
959
|
|
|
715
|
|
|
244
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(1)
|
|
|
250
|
|
|
(251)
|
|
>(100)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and
other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated entities
|
|
35
|
|
|
34
|
|
|
1
|
|
2%
|
|
Interest and dividend
income
|
|
13
|
|
|
8
|
|
|
5
|
|
75%
|
|
Interest
expense
|
|
(28)
|
|
|
(20)
|
|
|
(8)
|
|
(39)%
|
|
Other, net
|
|
1
|
|
|
–
|
|
|
1
|
|
44%
|
|
|
Total investment and
other income
|
|
21
|
|
|
22
|
|
|
(1)
|
|
(7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
20
|
|
|
272
|
|
|
(252)
|
|
(93)%
|
|
Income tax
expense
|
|
11
|
|
|
107
|
|
|
(96)
|
|
(90)%
|
Net income
(loss)
|
|
9
|
|
|
165
|
|
|
(156)
|
|
(94)%
|
|
Less: Net income
(loss) attributable to noncontrolling
interests, net of tax
|
|
–
|
|
|
5
|
|
|
(5)
|
|
(87)%
|
Net income (loss)
attributable to U.S. Cellular shareholders
|
$
|
9
|
|
$
|
160
|
|
$
|
(151)
|
|
(95)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
84
|
|
|
84
|
|
|
–
|
|
-
|
Basic earnings
(loss) per share attributable to U.S. Cellular shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
0.10
|
|
$
|
1.90
|
|
$
|
(1.80)
|
|
(95)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
85
|
|
|
85
|
|
|
–
|
|
-
|
Diluted earnings
(loss) per share attributable to U.S. Cellular shareholders
|
|
|
|
|
|
|
|
|
|
|
$
|
0.10
|
|
$
|
1.89
|
|
$
|
(1.79)
|
|
(95)%
|
United States
Cellular Corporation
|
Consolidated
Statement of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
(Dollars in
millions)
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
9
|
|
$
|
165
|
|
Add (deduct)
adjustments to reconcile net income to cash flows from operating
activities
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and accretion
|
|
153
|
|
|
147
|
|
|
|
Bad debts
expense
|
|
19
|
|
|
29
|
|
|
|
Stock-based
compensation expense
|
|
5
|
|
|
6
|
|
|
|
Deferred income
taxes, net
|
|
4
|
|
|
(26)
|
|
|
|
Equity in earnings of
unconsolidated entities
|
|
(35)
|
|
|
(34)
|
|
|
|
Distributions from
unconsolidated entities
|
|
14
|
|
|
13
|
|
|
|
(Gain) loss on asset
disposals, net
|
|
5
|
|
|
4
|
|
|
|
(Gain) loss on sale
of business and other exit costs, net
|
|
–
|
|
|
(111)
|
|
|
|
(Gain) loss on
license sales and exchanges, net
|
|
–
|
|
|
(123)
|
|
Changes in assets and
liabilities from operations
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
15
|
|
|
(1)
|
|
|
|
Equipment installment
plans receivable
|
|
(41)
|
|
|
(36)
|
|
|
|
Inventory
|
|
(2)
|
|
|
102
|
|
|
|
Accounts
payable
|
|
43
|
|
|
(19)
|
|
|
|
Customer deposits and
deferred revenues
|
|
(6)
|
|
|
13
|
|
|
|
Accrued
taxes
|
|
30
|
|
|
189
|
|
|
|
Accrued
interest
|
|
9
|
|
|
10
|
|
|
|
Other assets and
liabilities
|
|
(59)
|
|
|
(73)
|
|
|
|
|
Net cash provided by
operating activities
|
|
163
|
|
|
255
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Cash paid for
additions to property, plant and equipment
|
|
(103)
|
|
|
(116)
|
|
Cash paid for
acquisitions and licenses
|
|
–
|
|
|
(280)
|
|
Cash received from
divestitures and exchanges
|
|
2
|
|
|
274
|
|
Other investing
activities
|
|
(1)
|
|
|
2
|
|
|
|
|
Net cash used in
investing activities
|
|
(102)
|
|
|
(120)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
(3)
|
|
|
–
|
|
Common shares
reissued for benefit plans, net of tax payments
|
|
1
|
|
|
–
|
|
Common shares
repurchased
|
|
(2)
|
|
|
(2)
|
|
Payment of debt
issuance costs
|
|
–
|
|
|
(3)
|
|
Acquisition of assets
in common control transaction
|
|
–
|
|
|
(2)
|
|
Other financing
activities
|
|
–
|
|
|
(3)
|
|
|
|
|
Net cash used in
financing activities
|
|
(4)
|
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash and cash equivalents
|
|
57
|
|
|
125
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
Beginning of
period
|
|
715
|
|
|
212
|
|
End of
period
|
$
|
772
|
|
$
|
337
|
United States
Cellular Corporation
|
Consolidated
Balance Sheet Highlights
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
(Dollars in
millions)
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
772
|
|
$
|
715
|
|
Accounts receivable
from customers and others, net
|
|
666
|
|
|
672
|
|
Inventory,
net
|
|
151
|
|
|
149
|
|
Prepaid
expenses
|
|
96
|
|
|
81
|
|
Other current
assets
|
|
23
|
|
|
55
|
|
|
|
|
1,708
|
|
|
1,672
|
|
|
|
|
|
|
|
|
Assets held for
sale
|
|
26
|
|
|
–
|
|
|
|
|
|
|
|
|
Licenses
|
|
1,808
|
|
|
1,834
|
Goodwill
|
|
370
|
|
|
370
|
Investments in
unconsolidated entities
|
|
384
|
|
|
363
|
|
|
|
|
|
|
|
|
Property, plant
and equipment
|
|
|
|
|
|
|
In service and under
construction
|
|
7,693
|
|
|
7,669
|
|
Less: Accumulated
depreciation
|
|
5,120
|
|
|
5,020
|
|
|
Property, plant and
equipment, net
|
|
2,573
|
|
|
2,649
|
|
|
|
|
|
|
|
|
Other assets and
deferred charges
|
|
188
|
|
|
172
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
7,057
|
|
$
|
7,060
|
United States
Cellular Corporation
|
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
|
$
|
11
|
|
$
|
11
|
|
Accounts
payable
|
|
|
|
|
|
|
|
Affiliated
|
|
10
|
|
|
10
|
|
|
Trade
|
|
295
|
|
|
275
|
|
Customer deposits and
deferred revenues
|
|
245
|
|
|
251
|
|
Accrued
taxes
|
|
24
|
|
|
28
|
|
Accrued
compensation
|
|
41
|
|
|
68
|
|
Other current
liabilities
|
|
97
|
|
|
105
|
|
|
|
|
723
|
|
|
748
|
|
|
|
|
|
|
|
|
Deferred
liabilities and credits
|
|
|
|
|
|
|
Net deferred income
tax liability
|
|
825
|
|
|
821
|
|
Other deferred
liabilities and credits
|
|
297
|
|
|
290
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
1,626
|
|
|
1,629
|
|
|
|
|
|
|
|
|
Noncontrolling
interests with redemption features
|
|
2
|
|
|
1
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
U.S. Cellular
shareholders' equity
|
|
|
|
|
|
|
Series A Common and
Common Shares, par value $1 per share
|
|
88
|
|
|
88
|
|
Additional paid-in
capital
|
|
1,501
|
|
|
1,497
|
|
Treasury
shares
|
|
(155)
|
|
|
(157)
|
|
Retained
earnings
|
|
2,140
|
|
|
2,133
|
|
|
Total U.S. Cellular
shareholders' equity
|
|
3,574
|
|
|
3,561
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
10
|
|
|
10
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
3,584
|
|
|
3,571
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
7,057
|
|
$
|
7,060
|
United States
Cellular Corporation
|
Financial Measures
and Reconciliations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
(Dollars in
millions)
|
|
|
|
|
|
Cash flows from
operating activities
|
$
|
163
|
|
$
|
255
|
Less: Cash used for
additions to property, plant and equipment
|
|
103
|
|
|
116
|
|
Free cash
flow
|
|
60
|
|
|
139
|
Add: Sprint Cost
Reimbursement
|
|
2
|
|
|
16
|
|
Adjusted free cash
flow (1)
|
|
|
$
|
62
|
|
$
|
155
|
|
(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 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/us-cellular-reports-first-quarter-2016-results-300264314.html
SOURCE United States Cellular Corporation