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TDS reports fourth quarter and full year 2023 results

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Investing in our networks; Provides 2024 guidance

CHICAGO, Feb. 16, 2024 /PRNewswire/ — 

As previously announced, TDS will hold a teleconference on February 16, 2024 at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE: TDS) reported total operating revenues of $1,313 million for the fourth quarter of 2023, versus $1,357 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(523) million and $(4.64), respectively, for the fourth quarter of 2023 compared to $(43) million and $(0.38), respectively, in the same period one year ago.

Excluding a $547 million ($511 million, net of tax impacts) non-cash charge related to goodwill impairment recorded at TDS Telecom during the fourth quarter of 2023, net income (loss) available to TDS common shareholders and related diluted earnings (loss) per share for the fourth quarter of 2023 were $(12) million and $(0.11), respectively.

TDS reported total operating revenues of $5,160 million and $5,413 million for the years ended 2023 and 2022, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(569) million and $(5.06), respectively, for the year ended 2023 compared to $(7) million and $(0.07), respectively, for the year ended 2022.

Excluding a $547 million ($511 million, net of tax impacts) non-cash charge related to goodwill impairment recorded at TDS Telecom during the fourth quarter of 2023, net income (loss) available to TDS common shareholders and related diluted earnings (loss) per share for the year ended 2023 were $(58) million and $(0.53), respectively.

Full year 2023 Highlights*

UScellular

Postpaid ARPU grew 2%Delivering on growth initiatives Fixed wireless customers grew 46% to 114,000Tower rental revenues grew 8% to $100 millionIncreased profitabilityNet income, Adjusted OIBDA and Adjusted EBITDA upGenerated positive free cash flow and increased cash flows from operating activities Began launching 5G mid-band network – providing low latency and faster speeds

TDS Telecom

Exceeded full year 2023 fiber address goalDelivered 217,000 fiber service addressesExecuting on fiber broadband strategyExpanded its footprint 12% – increased total service addresses to 1.7 millionResidential broadband connections grew 6% and Residential revenue per connection grew 4%Total Wireline expansion residential revenues grew to $75 million

*Comparisons are Year Ended December 31, 2023 to Year Ended December 31, 2022

“In 2023, the TDS Family of Companies continued to make substantial investments in our businesses in order to improve our competitiveness,” said LeRoy T. Carlson, Jr., TDS President and CEO. “UScellular made significant progress on its 5G network, while TDS Telecom ended the year with all of its fiber expansion communities initially launched.

“UScellular increased Postpaid ARPU 2% and drove strong results in fixed wireless in 2023. It was a challenging year from a mobility subscriber standpoint as the environment remains competitive. UScellular’s goal was to balance subscriber objectives with financial goals, which led to increased profitability year over year.

“In 2024, UScellular plans to continue focusing on improving customer results, growth in fixed wireless and towers, and maintaining financial discipline as we advance the network through mid-band deployment.

“In 2023, TDS Telecom delivered 217,000 marketable fiber service addresses, up 24% from the initial 2023 target. Residential broadband connections increased 6%, while residential revenue per connection grew 4%. With all markets launched, the team plans to focus on increasing broadband penetration and revenues across the fiber footprint. We expect this to result in improved profitability in 2024.”

Recent Development: On August 4, 2023, TDS and UScellular announced that the Boards of Directors of both companies decided to initiate a process to explore a range of strategic alternatives for UScellular. The process is still ongoing.

2024 Estimated Results

TDS’ current estimates of full-year 2024 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of February 16, 2024 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

UScellular

2024 Estimated
Results

Actual Results for

the Year Ended

December 31, 2023

(Dollars in millions)

Service revenues

$2,950-$3,050

$3,044

Adjusted OIBDA1, 2

$750-$850

$818

Adjusted EBITDA1, 2

$920-$1,020

$986

Capital expenditures

$550-$650

$611

TDS Telecom

2024 Estimated
Results

Actual Results for
the Year Ended
December 31, 2023

(Dollars in millions)

Total operating revenues

$1,070-$1,100

$1,028

Adjusted OIBDA1

$310-$340

$279

Adjusted EBITDA1

$310-$340

$285

Capital expenditures

$310-$340

$577

 

The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) or Income (loss) before income taxes. In providing 2024 estimated results, TDS has not completed the below reconciliation to Net income (loss) because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.

UScellular

TDS Telecom

2024 Estimated
Results2

Actual Results for

the Year Ended

December 31, 2023

2024 Estimated
Results2

Actual Results for

the Year Ended

December 31, 2023

(Dollars in millions)

Net income (loss) (GAAP)

N/A

$58

N/A

($483)

Add back:

Income tax expense

N/A

53

N/A

(26)

Income (loss) before income taxes (GAAP)

$40-$140

$111

$40-$70

($509)

Add back:

Interest expense

195

196

(8)

Depreciation, amortization and accretion expense

665

656

270

245

EBITDA (Non-GAAP)1

$900-$1,000

$963

$310-$340

($272)

Add back or deduct:

Expenses related to strategic alternatives review

8

Loss on impairment of goodwill

547

(Gain) loss on asset disposals, net

20

17

10

(Gain) loss on license sales and exchanges, net

(2)

Adjusted EBITDA (Non-GAAP)1

$920-$1,020

$986

$310-$340

$285

Deduct:

Equity in earnings of unconsolidated entities

160

158

Interest and dividend income

10

10

4

Other, net

2

Adjusted OIBDA (Non-GAAP)1

$750-$850

$818

$310-$340

$279

Numbers may not foot due to rounding.

1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS’ financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of UScellular while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income (loss) or Income (loss) before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for December 31, 2023, can be found on TDS’ website at investors.tdsinc.com.

2

2024 Estimated Results do not reflect any anticipated costs, expenses or results of the strategic alternatives review referenced above.

 

Conference Call Information
TDS will hold a conference call on February 16, 2024 at 9:00 a.m. Central Time.

Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://events.q4inc.com/attendee/105947395Access the call by phone at (888) 330-2384 (US/Canada), passcode: 1328528

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com.

About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 8,800 people as of December 31, 2023.

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

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether any strategic alternatives for UScellular will be successfully identified or completed; whether any such strategic alternative will result in additional value for TDS or its shareholders and whether the process will have an adverse impact on TDS’ businesses; intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms and changes in roaming practices; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS’ smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; the effect on TDS’ business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and the impact, duration and severity of public health emergencies. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of TDS’ Form 10-K.

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

 

United States Cellular Corporation

Summary Operating Data (Unaudited)

 

As of or for the Quarter Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Retail Connections

Postpaid

Total at end of period

4,106,000

4,159,000

4,194,000

4,223,000

4,247,000

Gross additions

129,000

128,000

125,000

137,000

154,000

Handsets

80,000

84,000

83,000

93,000

105,000

Connected devices

49,000

44,000

42,000

44,000

49,000

Net additions (losses)

(50,000)

(35,000)

(28,000)

(24,000)

(17,000)

Handsets

(53,000)

(38,000)

(29,000)

(25,000)

(20,000)

Connected devices

3,000

3,000

1,000

1,000

3,000

ARPU1

$        51.61

$        51.11

$        50.64

$        50.66

$        50.60

ARPA2

$      131.63

$      130.91

$      130.19

$      130.77

$      130.97

Handset upgrade rate3

5.8 %

4.5 %

4.8 %

4.9 %

7.0 %

Churn rate4

1.44 %

1.30 %

1.21 %

1.27 %

1.35 %

Handsets

1.22 %

1.11 %

1.01 %

1.06 %

1.12 %

Connected devices

3.03 %

2.64 %

2.65 %

2.78 %

2.99 %

Prepaid

Total at end of period

451,000

462,000

462,000

470,000

493,000

Gross additions

43,000

52,000

50,000

43,000

61,000

Net additions (losses)

(11,000)

(8,000)

(23,000)

ARPU1, 5

$        32.32

$        33.44

$        33.86

$        33.19

$        33.34

Churn rate4

3.87 %

3.68 %

4.18 %

4.63 %

4.11 %

Market penetration at end of period

Consolidated operating population

32,350,000

32,350,000

32,350,000

32,350,000

32,370,000

Consolidated operating penetration6

15 %

15 %

15 %

15 %

15 %

Capital expenditures (millions)

$           148

$           111

$           143

$           208

$           176

Total cell sites in service

7,000

6,973

6,952

6,950

6,945

Owned towers

4,373

4,356

4,341

4,338

4,336

Due to rounding, the sum of quarterly results may not equal the total for the year.

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 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.

3

Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.

4

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.

5

Fourth quarter 2023 Prepaid ARPU excludes a $6 million reduction of prepaid revenue related to an adjustment to correct a prior period error recorded in the fourth quarter of 2023.

6

Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.

 

TDS Telecom

Summary Operating Data (Unaudited)

 

As of or for the Quarter Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Residential connections

Broadband

Wireline, Incumbent

244,800

248,800

249,200

247,900

249,100

Wireline, Expansion

92,200

79,400

70,200

62,800

56,100

Cable

202,900

204,400

204,200

204,700

204,800

Total Broadband

539,800

532,600

523,600

515,400

510,000

Video

131,500

132,400

132,300

132,600

135,300

Voice

281,600

284,000

288,200

289,200

291,600

Total Residential connections

952,900

949,000

944,100

937,200

936,900

Commercial connections

210,200

217,400

223,300

229,800

236,000

Total connections

1,163,100

1,166,400

1,167,400

1,167,000

1,173,000

Residential revenue per connection1

$           62.74

$           62.15

$           61.97

$           60.24

$           59.91

Capital expenditures (millions)

$               143

$               172

$               132

$               130

$               165

Numbers may not foot due to rounding.

1

Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023

vs. 2022

2023

2022

2023

vs. 2022

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

Operating revenues

UScellular

$ 1,000

$           1,048

(5) %

$ 3,906

$           4,169

(6) %

TDS Telecom

261

257

2 %

1,028

1,020

1 %

All Other1

52

52

(1) %

226

224

1 %

1,313

1,357

(3) %

5,160

5,413

(5) %

Operating expenses

UScellular

Expenses excluding depreciation, amortization and accretion

812

885

(8) %

3,096

3,379

(8) %

Depreciation, amortization and accretion

166

179

(8) %

656

700

(6) %

Loss on impairment of licenses

3

N/M

(Gain) loss on asset disposals, net

3

11

(67) %

17

19

(9) %

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

N/M

(1)

N/M

(Gain) loss on license sales and exchanges, net

(2)

N/M

(2)

N/M

979

1,075

(9) %

3,767

4,100

(8) %

TDS Telecom

Expenses excluding depreciation, amortization and accretion

186

192

(4) %

749

732

2 %

Depreciation, amortization and accretion

65

56

17 %

245

215

14 %

Loss on impairment of goodwill

547

N/M

547

N/M

(Gain) loss on asset disposals, net

1

3

(59) %

10

7

31 %

799

252

N/M

1,551

954

63 %

All Other1

Expenses excluding depreciation and amortization

56

52

8 %

242

222

9 %

Depreciation and amortization

3

3

(6) %

14

14

(2) %

(Gain) loss on asset disposals, net

N/M

1

(95) %

59

56

7 %

256

237

8 %

Total operating expenses

1,837

1,383

33 %

5,574

5,291

5 %

Operating income (loss)

UScellular

21

(27)

N/M

139

69

N/M

TDS Telecom

(538)

5

N/M

(523)

66

N/M

All Other1

(7)

(4)

N/M

(30)

(13)

N/M

(524)

(26)

N/M

(414)

122

N/M

Investment and other income (expense)

Equity in earnings of unconsolidated entities

37

36

4 %

159

159

Interest and dividend income

4

7

(41) %

20

17

19 %

Interest expense

(66)

(55)

(20) %

(244)

(174)

(40) %

Other, net

1

N/M

2

1

94 %

Total investment and other income (expense)

(24)

(12)

(96) %

(63)

3

N/M

Income (loss) before income taxes

(548)

(38)

N/M

(477)

125

N/M

Income tax expense (benefit)

(45)

(8)

N/M

10

53

(81) %

Net income (loss)

(503)

(30)

N/M

(487)

72

N/M

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

3

(4)

N/M

13

10

28 %

Net income (loss) attributable to TDS shareholders

(506)

(26)

N/M

(500)

62

N/M

TDS Preferred Share dividends

17

17

69

69

Net loss attributable to TDS common shareholders

$   (523)

$   (43)

N/M

$   (569)

$      (7)

N/M

Basic weighted average shares outstanding

113

113

113

114

(1) %

Basic earnings (loss) per share attributable to TDS common shareholders

$  (4.64)

$  (0.38)

N/M

$  (5.05)

$  (0.07)

N/M

Diluted weighted average shares outstanding

113

113

113

114

(1) %

Diluted earnings (loss) per share attributable to TDS common shareholders

$  (4.64)

$  (0.38)

N/M

$  (5.06)

$  (0.07)

N/M

N/M – Percentage change not meaningful.

Numbers may not foot due to rounding.

1

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

 

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

Year Ended December 31,

2023

2022

(Dollars in millions)

Cash flows from operating activities

Net income (loss)

$             (487)

$                 72

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

Depreciation, amortization and accretion

915

929

Bad debts expense

111

138

Stock-based compensation expense

41

42

Deferred income taxes, net

8

47

Equity in earnings of unconsolidated entities

(159)

(159)

Distributions from unconsolidated entities

150

145

Loss on impairment of intangible assets

547

3

(Gain) loss on asset disposals, net

27

27

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

(1)

(Gain) loss on license sales and exchanges, net

(2)

Other operating activities

8

10

Changes in assets and liabilities from operations

Accounts receivable

2

(69)

Equipment installment plans receivable

(20)

(199)

Inventory

61

(90)

Accounts payable

(99)

32

Customer deposits and deferred revenues

(8)

48

Accrued taxes

50

127

Other assets and liabilities

(3)

53

Net cash provided by operating activities

1,142

1,155

Cash flows from investing activities

Cash paid for additions to property, plant and equipment

(1,211)

(1,161)

Cash paid for licenses and other intangible assets

(130)

(614)

Other investing activities

14

(8)

Net cash used in investing activities

(1,327)

(1,783)

Cash flows from financing activities

Issuance of long-term debt

1,081

1,154

Repayment of long-term debt

(723)

(332)

Issuance of short-term debt

110

Repayment of short-term debt

(60)

(50)

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

(3)

(4)

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

(6)

(5)

Repurchase of TDS Common Shares

(6)

(40)

Repurchase of UScellular Common Shares

(43)

Dividends paid to TDS shareholders

(153)

(151)

Payment of debt and equity issuance costs

(5)

(2)

Distributions to noncontrolling interests

(3)

(3)

Cash paid for software license agreements

(66)

(23)

Other financing activities

2

Net cash provided by financing activities

56

613

Net decrease in cash, cash equivalents and restricted cash

(129)

(15)

Cash, cash equivalents and restricted cash

Beginning of period

399

414

End of period

$               270

$               399

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

 

ASSETS

December 31,

2023

2022

(Dollars in millions)

Current assets

Cash and cash equivalents

$                   236

$                   360

Accounts receivable, net

1,074

1,181

Inventory, net

208

268

Prepaid expenses

86

102

Income taxes receivable

4

59

Other current assets

52

58

Total current assets

1,660

2,028

Assets held for sale

15

26

Licenses

4,702

4,699

Goodwill

547

Other intangible assets, net

183

204

Investments in unconsolidated entities

505

495

Property, plant andequipment, net

5,062

4,760

Operating lease right-of-use assets

987

995

Other assets and deferred charges

807

796

Total assets

$              13,921

$              14,550

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

 

LIABILITIES AND EQUITY

December 31,

2023

2022

(Dollars in millions, except per share amounts)

Current liabilities

Current portion of long-term debt

$                     26

$                     19

Accounts payable

360

506

Customer deposits and deferred revenues

277

285

Accrued interest

12

12

Accrued taxes

43

46

Accrued compensation

149

144

Short-term operating lease liabilities

147

146

Other current liabilities

170

356

Total current liabilities

1,184

1,514

Deferred liabilities and credits

Deferred income tax liability, net

975

969

Long-term operating lease liabilities

890

908

Other deferred liabilities and credits

784

813

Long-term debt, net

4,080

3,731

Noncontrolling interests with redemption features

12

12

Equity

TDS shareholders’ equity

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

1

1

Capital in excess of par value

2,558

2,551

Preferred Shares, par value $0.01 per share

1,074

1,074

Treasury shares, at cost

(465)

(481)

Accumulated other comprehensive income

11

5

Retained earnings

2,023

2,699

Total TDS shareholders’ equity

5,202

5,849

Noncontrolling interests

794

754

Total equity

5,996

6,603

Total liabilities and equity

$              13,921

$              14,550

 

Balance Sheet Highlights

(Unaudited)

December 31, 2023

UScellular

TDS

Telecom

TDS Corporate

& Other

Intercompany

Eliminations

TDS

Consolidated

(Dollars in millions)

Cash and cash equivalents

$                  150

$                    37

$                    90

$                  (41)

$                  236

Licenses and other intangible assets

$              4,693

$                  187

$                      5

$                    —

$              4,885

Investment in unconsolidated entities

461

4

48

(8)

505

$              5,154

$                  191

$                    53

$                    (8)

$              5,390

Property, plant and equipment, net

$              2,576

$              2,402

$                    84

$                    —

$              5,062

Long-term debt, net:

Current portion

$                    20

$                    —

$                      6

$                    —

$                    26

Non-current portion

3,044

3

1,033

4,080

$              3,064

$                      3

$              1,039

$                    —

$              4,106

 

TDS Telecom Highlights

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023 vs. 2022

2023

2022

2023 vs. 2022

(Dollars in millions)

Operating revenues

Residential

Wireline, Incumbent

$         88

$         87

1 %

$       352

$       350

1 %

Wireline, Expansion

23

14

61 %

75

49

53 %

Cable

69

67

2 %

273

270

1 %

Total residential

179

168

6 %

700

669

5 %

Commercial

37

43

(13) %

155

173

(10) %

Wholesale

45

45

(1) %

172

177

(3) %

Total service revenues

261

256

2 %

1,027

1,019

1 %

Equipment revenues

(22) %

1

1

(12) %

Total operating revenues

261

257

2 %

1,028

1,020

1 %

Cost of services

104

110

(5) %

423

418

1 %

Cost of equipment and products

N/M

1

(26) %

Selling, general and administrative expenses

82

83

(1) %

326

313

4 %

Depreciation, amortization and accretion

65

56

17 %

245

215

14 %

Loss on impairment of goodwill

547

N/M

547

N/M

(Gain) loss on asset disposals, net

1

3

(59) %

10

7

31 %

Total operating expenses

799

252

N/M

1,551

954

63 %

Operating income (loss)

$     (538)

$           5

N/M

$     (523)

$         66

N/M

N/M – Percentage change not meaningful.

Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.

Financial Measures and Reconciliations

Free Cash Flow

Three Months Ended

December 31,

Year Ended

December 31,

TDS Consolidated

2023

2022

2023

2022

(Dollars in millions)

Cash flows from operating activities (GAAP)

$                 218

$                 255

$              1,142

$              1,155

Cash paid for additions to property, plant and equipment

(304)

(367)

(1,211)

(1,161)

Cash paid for software license agreements

(37)

(18)

(66)

(23)

Free cash flow (Non-GAAP)1

$               (123)

$               (130)

$               (135)

$                  (29)

Three Months Ended

December 31,

Year Ended

December 31,

UScellular

2023

2022

2023

2022

(Dollars in millions)

Cash flows from operating activities (GAAP)

$                 148

$                 180

$                 866

$                 832

Cash paid for additions to property, plant and equipment

(155)

(192)

(608)

(602)

Cash paid for software license agreements

(37)

(17)

(66)

(22)

Free cash flow (Non-GAAP)1

$                  (44)

$                  (29)

$                 192

$                 208

1

Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

 

EBITDA, Adjusted EBITDA and Adjusted OIBDA

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes.

Year Ended December 31,

UScellular

2023

2022

(Dollars in millions)

Net income (GAAP)

$                 58

$                 35

Add back or deduct:

Income tax benefit

53

37

Income before income taxes (GAAP)

111

72

Add back:

Interest expense

196

163

Depreciation, amortization and accretion expense

656

700

EBITDA (Non-GAAP)

963

935

Add back or deduct:

Expenses related to strategic alternatives review

8

Loss on impairment of licenses

3

(Gain) loss on asset disposals, net

17

19

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

(1)

(Gain) loss on license sales and exchanges, net

(2)

Adjusted EBITDA (Non-GAAP)

986

956

Deduct:

Equity in earnings of unconsolidated entities

158

158

Interest and dividend income

10

8

Adjusted OIBDA (Non-GAAP)

$               818

$               790

 

Net income 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 at TDS Telecom and related tax impacts. The goodwill impairment charge, which occurred in the fourth quarter of 2023, is being excluded in this presentation, as it is not related to the current operations of TDS. TDS 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

December 31,

Year Ended

December 31,

2023

2022

2023

2022

(Dollars in millions)

Net loss attributable to TDS common shareholders (GAAP)

$               (523)

$                  (43)

$               (569)

$                    (7)

Adjustments:

Loss on impairment of goodwill

547

547

Deferred tax benefit on the tax-amortizable portion of the impaired Goodwill

(36)

(36)

Subtotal of Non-GAAP adjustments

511

511

Net loss attributable to TDS common shareholders excluding goodwill impairment
charge (Non-GAAP)

(12)

(43)

(58)

(7)

Noncontrolling interest adjustment to compute earnings (loss)

(1)

(1)

Net loss attributable to TDS common shareholders excluding goodwill impairment
charge used in diluted earnings (loss) per share (Non-GAAP)

$                  (12)

$                  (43)

$                  (59)

$                    (8)

Diluted weighted average shares outstanding

113

113

113

114

Diluted earnings (loss) per share attributable to TDS common shareholders (GAAP)

$              (4.64)

$              (0.38)

$              (5.06)

$              (0.07)

Adjustments:

Loss on impairment of goodwill

4.85

4.85

Deferred tax benefit on the tax-amortizable portion of the impaired Goodwill

(0.32)

(0.32)

Diluted earnings (loss) per share attributable to TDS common shareholders excluding
impairment of goodwill charge (Non-GAAP)

$              (0.11)

$              (0.38)

$              (0.53)

$              (0.07)

 

View original content:https://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2023-results-302063497.html

SOURCE Telephone and Data Systems, Inc.

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KAYAK Launches WTF (What the Future) Travel Trend Report

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Rise in City Jumping, Spiritual Sidequests and Feedbooking among top travel predictions for travel by 2030

STAMFORD, Conn., Jan. 23, 2025 /PRNewswire/ — Out with single-stop journeys, in with city jumping adventures. Bid farewell to self-care trips and welcome journeys of self-discovery and cosmetic-cations. Loyalty programs take a back seat as price-conscious travelers seek better deals.

Today, KAYAK, the world’s leading travel search engine, is rolling out its WTF – What the Future – report, giving travelers a first look at the hottest travel trends shaping the next 5 years.

Diving into survey insights from over 9,000 individuals spanning 9 countries, exclusive interviews with KAYAK executives, and an in-depth analysis of KAYAK’s billions of searches, KAYAK teamed up with The Future Laboratory, a trailblazer in trend forecasting, to unveil eight groundbreaking travel trends set to dominate your social media feeds and shape the future of travel by 2025.

So… What’s The Future? KAYAK’s Travel Predictions for 2030

AI Agents
A new wave of travel agents is emerging, focusing on personalized travel experiences. Over one third (36%) of Americans would use AI for travel recommendations and inspiration. Another third wish AI could simplify comparing flight and hotel prices (33% and 34%) . While 71% of Americans have yet to try AI for trip planning, by 2030, AI assistants will be more commonly used.

“AI is already rapidly improving customer support for travel delays and itinerary changes. It’s also suggesting personalized recommendations of places to visit and things to do. The next big step forward will be automated bookings – and we’re already making KAYAK AI agent-friendly.” – Steve Hafner, CEO of KAYAK

City Jumpin’, Jumpin’
By 2030, travelers will prioritize multi-stop trips over single destination vacations. Looking ahead to next year, there’s already 45% of Americans who are planning to “city jump” or visit multiple cities in a single vacation. Why? 47% want to experience more during their trip and 49% are all about affordability. This year, 93% of Americans aim to explore 1 to 5 cities per trip. And by 2030, that number could double.

Vitamin T
By 2030, the value of a trip will hinge on wellness scores. KAYAK notes a surge in wellness travel, with pools as the top searched hotel amenity globally, followed by hot tubs, spas, and fitness facilities. 60% of travelers prioritize relaxation, while 13% emphasize health and wellness. Destinations promoting longevity will become sought-after additions to travelers’ bucket lists.

A Cosmetic-cation Boom For Americans It’s not just wellness scores that will be all the rage by 2030. If you’ve ever heard of a healthcation then get ready for a cosmetic-cation (i.e. a trip for a cosmetic or beauty procedure). While only a small group have jetted off for cosmetic treatments abroad, 1 in 8 have considered it, hinting at a future surge, with another 1 in 10 ready to go test it out. For those who HAVE traveled for a cosmetic-cation, affordability (for 61%) is the key factor. With healthcare expenses climbing, brace yourself for more international jaunts for beauty enhancements by 2030! Hair transplants in Turkey, anyone?

Feedbooking
A social shopping surge is on the horizon. Nearly half of Americans (43%) have made purchases influenced by social media, with another 20% having considered it. Facebook and Instagram are top influencers, with over a quarter of Americans booking a trip after seeing a post. Current social purchases run $200 or less, but by 2030, KAYAK expects social media to become a travel shopping hub, boosting purchase numbers.

Travel is Gonna be LIT (Low Intensity Trips)
Off-season adventures await. For more than one third of Americans (36%), off-season travel is preferred to avoid the crowds, even if it means a compromise on the weather. Not to mention the savings! Opting for shoulder season travel in Europe can slash costs by up to 27% compared to peak periods. KAYAK predicts a rise in offbeat destinations driven by better prices and more conscious traveler choices in the next 5 years.

Virtual Voyages
Here comes a travel tech revolution. 1 in 7 Americans are embracing VR headsets to explore destinations before booking, and by 2030, holographic concierges and automatic airfare refunds could be the norm. Travelers are excited about virtual hotel room previews (35%) and in-flight VR entertainment (10%) for an immersive journey.

Spiritual Sidequests
Get ready to soar with a spiritual sidequest. 1 in 6 Americans are eyeing silent retreats to disconnect from their phones, while 1 in 14 are keen on psychedelic therapy trips abroad. These trends are primed to skyrocket in the next 5 years!

Disloyalty Programs
Americans have a love-hate relationship with loyalty programs, which we predict will continue to evolve in the next 5 years. Now, about 22% of Americans are in travel loyalty programs, but 21% feel price comparison tools (like KAYAK!) offer better value than traditional airline rewards. This is why we’ll start to see loyalty programs shift to cater to more price-conscious travelers. With 72% expecting pricier travel ahead, saving is key – travelers are ready to switch brands to be loyal to the deal instead.

Learn more about KAYAK’s WTF predictions HERE.

Methodology

Global Survey insights
PureSpectrum interviewed 9112 respondents aged 18+ in the US, UK, Canada, Brazil, France, Germany, Denmark and Sweden who travel for leisure purposes internationally at least once a year. The survey was conducted using an online methodology. A sample of 2000 people were polled in the US, and all other markets had a targeted minimum sample of 1000 completes. The research fieldwork was conducted from August 13 – 20, 2024.

US Survey insights
This survey has been conducted using an online interview administered to members of the YouGov Plc panel of individuals who have agreed to take part in surveys. Total sample size was 1091 adults. Fieldwork was undertaken between 19th – 20th December 2024. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).

KAYAK data analysis
Based on hotel searches made on KAYAK and associated brands in the period between September 1, 2023 and September 15, 2024 for stays between January 1, 2024December 31, 2024.

About KAYAK
KAYAK, part of Booking Holdings (NASDAQ: BKNG), is the world’s leading travel search engine. With billions of queries across our platforms, we help people find their perfect flight, stay, rental car and vacation package. We also support business travelers with our corporate travel solution.

About The Future Laboratory
The Future Laboratory is one of the world’s most renowned futures consultancies. With a unique blend of trend forecasting, consumer insight, brand strategy and innovation, the company has helped to shape, inspire and future-proof organisations globally since 2001.

View original content to download multimedia:https://www.prnewswire.com/news-releases/kayak-launches-wtf-what-the-future-travel-trend-report-302359100.html

SOURCE KAYAK

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Burrell Communications Group partners with Microsoft to innovate the tech giant’s approach to employee and culture storytelling

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Agency’s newest business win caps a successful first year under new ownership and leadership

CHICAGO, Jan. 23, 2025 /PRNewswire/ — Burrell Communications Group, one of the world’s most highly regarded Black-owned advertising agencies, has announced a new partnership with Microsoft, with the work to be centered on placing a strategic, people-focused lens on the tech giant’s employee storytelling efforts, driving innovative and impactful results.

The move to bring on Burrell, a champion in the multicultural marketing arena, is the agency’s newest business win and caps a stellar first year since Burrell was acquired by a private equity firm in late 2023 and named a new CEO and executive leadership team.

Burrell was chosen by Microsoft to develop a year-long marketing campaign to help tell the stories of its employees and company culture, as Microsoft grows into its 50th year.

“We were very intentional about presenting our creativity, backed by data-driven cultural insights to Microsoft which proved that people don’t live or think in silos,” said Tara DeVeaux, Burrell’s CEO. “Burrell has invested heavily in a cultural segmentation study that became a foundational element of our recommendation. We live in an intersectional world and race is just one part of how the population identifies. Every community navigates in unique ways they want to be recognized, embraced and understood,” she added. “Given our commitment to understanding the changing dynamics of people and culture, there’s no better agency for Microsoft to partner with in crafting their new approach than Burrell.”

“We’re energized to be working with Burrell Communications Group, and for the opportunity to tap into their marketing experience to continue to tell the stories of our employees around the world and their contributions to decades of Microsoft’s innovation,” stated Amanda O’Neal, Senior Director, Multicultural Communications for Microsoft. “Burrell has a strong track record helping Fortune 500 companies reflect authenticity and creativity in marketing campaigns and we look forward to the work ahead.”

ABOUT BURRELL COMMUNICATIONS GROUP:
Burrell Communications Group was founded in 1971 by renowned ad man Tom Burrell, who led the company for33 years. Today, Burrell Communications Group is the largest U.S. Black-owned agency specializing in understanding and speaking to today’s market, one that is more diverse and more multicultural than ever before in our country’s history. The agency boasts a roster of premiere, blue-chip clients that lead in their respective categories, including McDonald’s, Toyota, Comcast, Fidelity, Coca-Cola, Unilever and the American Red Cross. For more information, visit burrell.com.

ABOUT MICROSOFT:
Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

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SOURCE Burrell Communications Group

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Medely Expands into Seven Key U.S. Markets to Simplify Healthcare Staffing and Address Labor Shortages

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LOS ANGELES, Jan. 23, 2025 /PRNewswire/ — Medely, a leading healthcare workforce management solution, today announced its expansion into seven new markets. Medely’s expansion is poised to address critical labor shortages by optimizing staffing efficiency, reducing operational costs, and addressing the growing demand for healthcare services in these key markets.

Medely launches in new markets, offering flexible staffing solutions to address critical healthcare labor challenges.

Expanding to Meet Market Demand

Medely’s expansion is driven by extensive research into the specific needs of medical facilities. As demand for care grows across the U.S., many facilities are facing difficulty finding qualified staff, especially for short-term or fluctuating needs. Medely’s platform is designed to address these challenges by offering immediate access to pre-vetted qualified independent professionals in real-time.

Here’s why these regions were selected:

Nashville: As a healthcare hub, Nashville is seeing a rise in outpatient care demand, especially with the city’s growing population. A 2021 study by the Tennessee Hospital Association reported that Tennessee needed about 15,700 more RNs to provide a national average level of care accounting for demographics, prevalence of disease and health risk factors, and socioeconomic factors within the state’s population.Indianapolis: With a rapidly growing healthcare market, Indianapolis is experiencing increasing demand for outpatient services. Estimates predict that Indiana would need an additional 5,000 nurses by 2031, equal to graduating an additional 1,300 nurses each year until that time, according to the Indiana Hospital Association.Charlotte: The fast-growing population of Charlotte is driving demand for outpatient care services. Medely’s talent marketplace offers an efficient, cost-effective solution to staff these facilities with the right talent, ensuring high-quality patient care and reducing staff shortages.Columbus: Columbus has seen an increase in nurse churn rates, with about 40% of nurses reporting significant unit turnover. The financial impact is substantial, as each percent reduction in RN turnover can save hospitals an average of $262,500 annually according to data from NSI. By providing a streamlined, efficient way to fill shifts quickly and with quality professionals, Medely can play a significant role in helping hospitals reduce turnover-related costs.Las Vegas: With seasonal fluctuations and a dynamic population, Las Vegas presents unique staffing challenges for outpatient facilities. For example, in 2023, Las Vegas attracted approximately 40.83 million visitors, contributing to the demand for healthcare services, especially in emergency and urgent care sectors. Medely’s platform offers the flexibility to scale staffing needs up or down, ensuring facilities can meet demand while keeping operational costs manageable.Portland: According to the Bureau of Labor Statistics, job openings in the healthcare and social assistance sector in Portland rose 48% from 1.2 million in 2019 to 1.8 million in 2023. This surge reflects a demand for healthcare professionals driven by clinician shortages and high turnover, as many seek better pay, working conditions, or retirement.Kansas City: Kansas City’s outpatient care sector is expanding, but nurse education enrollment is down, making flexible staffing solutions more crucial than ever. In fact, one study cites that, “29% of registered nurses and 23% of licensed practical nurses in Kansas are planning to retire within the next five years. And enrollments in nursing education programs are down 39% over the last 10 years.” Medely’s Talent Marketplace offers a way for facilities to quickly find qualified independent professionals, ensuring high-quality care while reducing time-to-hire.

Streamlining Staffing with Medely’s Talent Marketplace

Medely’s Talent Marketplace provides facilities with immediate access to a diverse pool of independent healthcare professionals across multiple disciplines, reducing the administrative burden and cost typically associated with traditional staffing models. The platform’s intuitive interface and real-time availability allow facilities to fill shifts faster with less overhead.

“We’re incredibly excited to expand into these new markets, where we see a critical need for flexible, high-quality healthcare staffing solutions,” said CEO and Founder of Medely, Waleed Nasr. “We’re not only helping healthcare facilities meet immediate staffing needs, but also driving long-term equity by providing healthcare professionals with the freedom to choose their work schedules, while supporting diverse talent pools.”

Introducing Talent Fusion: A Seamless Solution for Workforce Management Needs

In addition to the Talent Marketplace, Medely offers Talent Fusion, a solution to manage internal talent pools and fill per diem and longer-term shifts with one solution.

By utilizing Medely’s marketplace with internal resource management, facilities gain full visibility into their contingent labor data—including time tracking, credentialing, and vendor management—within a single solution.

This is why the largest outpatient network in the country is using Talent Fusion, allowing them to analyze spend and usage across facilities, make data-driven decisions, increase revenue, and manage their internal workforce and independent per diem talent. The solution provides a scalable, tailored approach to staffing that adapts to evolving needs.

A Future-Focused Approach

As Medely continues to scale its operations, the company is not just expanding its footprint – it is also rethinking the future of healthcare staffing. Medely’s expansion into these seven new markets is part of a broader strategy to meet the evolving needs of the U.S. healthcare system. By continuing to leverage data and technology, Medely is creating a future where healthcare staffing is more accessible, equitable, and efficient for all.

For more information about Medely and its services, please visit www.medely.com.

About Medely
Medely is a leading workforce management solution, addressing critical labor shortages and transforming the healthcare workforce. Through its innovative Talent Marketplace and Talent Fusion solutions, Medely unifies the extended workforce by integrating internal resources, independent per diem staffing, credentialing, and vendor management into a single seamless solution. By streamlining staffing, reducing operational costs, and meeting the growing demand for healthcare services, Medely empowers outpatient facilities to thrive.

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SOURCE Medely Inc

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