2014

TDS Reports First Quarter 2012 Results Reaffirms 2012 guidance

CHICAGO, May 4, 2012 /PRNewswire/ --

Note: Comparisons are year over year unless otherwise noted.

1Q 2012 Highlights

TDS Consolidated

  • Operating revenues increased 4 percent to $1,305.8 million.
  • Operating income increased 5 percent to $93.6 million.

U.S. Cellular

  • Smartphones as a percent of total devices sold increased to 54.1 percent from 42.5 percent; smartphone customers increased to 34.4 percent of postpaid customers from 20.3 percent.
  • Postpaid ARPU (average revenue per customer) increased 5 percent to $54.00 from $51.21.
  • Service revenues increased 4 percent to $1,023.8 million.
  • Operating income increased 45 percent to $85.2 million.
  • Retail gross additions increased 7 percent to 273,000 from 256,000.
  • Postpaid churn increased to 1.6 percent from 1.4 percent.
  • Net loss of 34,000 retail customers, reflecting loss of 38,000 postpaid customers and gain of 4,000 prepaid customers; postpaid customers comprised 94 percent of retail customers.
  • Cell sites in service increased 3 percent to 7,875.

TDS Telecom

  • Operating revenues increased 3 percent to $204.1 million.
  • ILEC triple play penetration increased to 30 percent from 26 percent.
  • managedIP connections (ILEC and CLEC) grew 88 percent to 64,500 from 34,400.

As previously announced, TDS will hold a teleconference May 4, 2012 at 9:30 a.m. CDT. Interested parties may listen to the call live by accessing the Investor Relations page of www.teldta.com.

Telephone and Data Systems, Inc. (NYSE: TDS) reported operating revenues of $1,305.8 million for the first quarter of 2012, an increase of 4 percent from $1,258.7 million in the comparable period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $52.3 million and $0.48, respectively, for the first quarter of 2012, compared to $43.5 million and $0.39, respectively, in the comparable period one year ago.

"Improved profitability at U.S. Cellular helped TDS' performance in the quarter," said LeRoy T. Carlson, Jr., TDS president and CEO. "U.S. Cellular increased retail gross customer additions and revenues, while effectively managing costs. TDS Telecom continued to increase residential broadband speeds and grow the customer base for its managedIP commercial services."

"U.S. Cellular continues to increase average revenue per customer through growth in smartphone penetration and data use, as well as inbound roaming revenues. To effectively manage equipment and network costs, the company has maintained a balanced mix of devices, and recently introduced a set of tiered data plans. U.S. Cellular plans to reach 50 percent of customers with 4G LTE access by year end.

"TDS Telecom is focused on attracting and retaining customers by offering competitive broadband speeds and complementary services. The company launched TDS TV, its proprietary IPTV service, in one more market in the quarter. TDS Telecom also increased the number of managedIP connections by 88 percent, as more business customers understood the productivity benefits of IP-based communication. To help the hosted and managed services business grow strategically over the next several years, the company is investing to build its management team and develop its portfolio of products and services.  Operating income at TDS Telecom decreased due primarily to $5.2 million of discrete gains in the first quarter of 2011, as well as a decline in high margin wholesale revenues."

Guidance for year ending Dec. 31, 2012

Guidance for the year ending Dec. 31, 2012, as of May 4, 2012, is unchanged from the previous guidance provided on Feb. 24, 2012.  TDS undertakes no duty to update such information, whether as a result of new information, future events, or otherwise.  There can be no assurance that final results will not differ materially from this guidance. 



2012 Estimated Results (1)

U.S. Cellular


Service revenues

$4,050-$4,150 million


Operating income

$200-$300 million


Depreciation, amortization and accretion expenses, 



  and net gain or loss on asset disposals and exchanges



  and loss on impairment of assets (2)

Approx. $600 million


Adjusted OIBDA (2) (4)

$800-$900 million


Capital expenditures

Approx. $850 million






2012 Estimated Results (3)

TDS Telecom Operations



Operating revenues

$810-$840 million


Operating income

$55-$85 million


Depreciation, amortization and accretion expenses,



  and net gain or loss on asset disposals and exchanges



  and loss on impairment of assets (2)

Approx. $190 million


Adjusted OIBDA (4)

$245-$275 million


Capital expenditures

$150-$180 million



(1)

These estimates are based on U.S. Cellular's current plans, which include a multi-year deployment of 4G LTE technology which commenced in 2011.  New developments or changing conditions (such as customer net growth, customer demand for data services or possible acquisitions, dispositions or exchanges) could affect U.S. Cellular's plans and, therefore, its 2012 estimated results. 

(2)

The 2012 Estimated Results do not include any estimate for unrecognized net gains or losses related to disposals and exchanges of assets or losses on impairment of assets (since such transactions and their effects are uncertain).

(3)

These estimates are based on TDS Telecom's current plans which include a multi-year deployment of IPTV that commenced in 2011.  New developments or changing conditions (such as costs to deploy, agreements for content or franchises) could affect TDS Telecom's plans and, therefore, its 2012 estimated results.

(4)

Adjusted OIBDA is defined as operating income excluding the effects of depreciation, amortization and accretion (OIBDA): the net gain or loss on asset disposals and exchanges (if any); and the loss on impairment of assets (if any). This measure also may be commonly referred to by management as operating cash flow. This measure should not be confused with Cash flows from operating activities, which is a component of the Consolidated Statement of Cash Flows.  Adjusted OIBDA excludes the net gain or loss on asset disposals and exchanges (if any) and loss on impairment of assets (if any) in order to show operating results on a more comparable basis from period to period.  TDS does not intend to imply that any of such amounts that are excluded are non-recurring, infrequent or unusual and, accordingly, they may be incurred in the future.  TDS believes this measure provides useful information to investors regarding TDS' financial condition and results of operations because it highlights certain key cash and non-cash items and their impacts on cash flows from operating activities.

Stock repurchase

TDS did not repurchase any shares during the quarter.  TDS determines whether to repurchase shares from time to time based on many considerations, including cash needed for other known or possible requirements, the stock price, market conditions, debt rating considerations, business forecasts, business plans, macroeconomic conditions, share issuances under compensation plans, provisions in governing and legal documents and other legal requirements, and other facts and circumstances.  Subject to these considerations, TDS intends to continue to repurchase its shares from time to time when circumstances warrant.  To the extent TDS does not complete its existing share authorization by the expiration date in November 2012, it is expected that the TDS board of directors will approve an additional authorization at that time.   

Conference call information

TDS will hold a conference call on May 4, 2012 at 9:30 a.m. CDT.

Before the call, certain financial and statistical information to be discussed during the call will be posted to the Investor Relations page of www.teldta.com. The call will be archived on the Conference Calls page of www.teldta.com.

About TDS

Telephone and Data Systems, Inc. (TDS), a Fortune 500® company, provides wireless, local and long-distance telephone, and broadband services to approximately 7 million customers in 36 states through its business units, U.S. Cellular (wireless) and TDS Telecom (wireline). Founded in 1969 and headquartered in Chicago, TDS employed 12,300 people as of March 31, 2012.

Visit www.teldta.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: the ability of the company to successfully manage and grow its markets; the overall economy; competition; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; changes in customer growth rates, average monthly revenue per customer, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by TDS to furnish this press release to the Securities and Exchange Commission ("SEC"), which are incorporated by reference herein.

For more information about TDS and its subsidiaries, visit:
TDS: www.teldta.com
U.S. Cellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com

 

 United States Cellular Corporation

 Summary Operating Data (Unaudited)

















 Quarter Ended


3/31/2012



12/31/2011



9/30/2011



6/30/2011



3/31/2011

 Total population
















Consolidated markets (1)


92,684,000



91,965,000



91,965,000



91,204,000



91,090,000


Consolidated operating markets (1)


46,966,000



46,888,000



46,888,000



46,888,000



46,774,000

 Market penetration at end of period
















Consolidated markets (2)


6.3%



6.4%



6.5%



6.5%



6.6%


Consolidated operating markets (2)


12.4%



12.6%



12.7%



12.7%



12.9%

 All customers
















Total at end of period


5,837,000



5,891,000



5,932,000



5,968,000



6,033,000


Gross additions


285,000



306,000



299,000



257,000



293,000


Net additions (losses)


(49,000)



(41,000)



(36,000)



(70,000)



(39,000)


Smartphones sold as a percent of
















      total devices sold (3)


54.1%



52.5%



39.9%



39.6%



42.5%

 Retail customers
















Total at end of period


5,570,000



5,608,000



5,621,000



5,644,000



5,698,000


Smartphone penetration (3) (4)


34.4%



30.5%



26.2%



23.1%



20.3%


Gross additions


273,000



298,000



284,000



226,000



256,000


Net retail additions (losses) (5)


(34,000)



(13,000)



(23,000)



(58,000)



(31,000)


      Net postpaid additions (losses)


(38,000)



(20,000)



(34,000)



(41,000)



(22,000)


      Net prepaid additions (losses)


4,000



7,000



11,000



(17,000)



(9,000)

 Service revenue components (000s)
















Retail service

$

888,527


$

882,091


$

871,199


$

868,630


$

864,602


Inbound roaming


80,132



93,353



107,810



82,760



64,386


Other


55,161



54,601



57,600



50,640



56,125

 Total service revenues (000s)

$

1,023,820


$

1,030,045


$

1,036,609


$

1,002,030


$

985,113

 Total ARPU (6)


58.21


$

58.13


$

58.09


$

55.69


$

54.29

 Billed ARPU (7)


50.52


$

49.78


$

48.82


$

48.27


$

47.65

 Postpaid ARPU (8)

$

54.00


$

53.35


$

52.41


$

51.84


$

51.21

 Postpaid churn rate (9)


1.6%



1.6%



1.5%



1.4%



1.4%

 Capital expenditures (000s)

$

201,300


$

276,400


$

248,000


$

162,100


$

95,900

 Cell sites in service


7,875



7,882



7,828



7,770



7,663



(1)

Used only to calculate market penetration of consolidated markets and consolidated operating markets, respectively. See footnote (2) below.

(2)

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®.

(3)

Smartphones represent wireless devices which run on an Android™, BlackBerry®, or Windows Mobile® operating system, excluding tablets.

(4)

Smartphone penetration is calculated by dividing postpaid smartphone customers by total postpaid customers.

(5)

Includes net postpaid additions (losses) and net prepaid additions (losses).

(6)

Total ARPU - Average monthly service revenue per customer includes retail service, inbound roaming and other service revenues and is calculated by dividing total service revenues by the number of months in the period and by the average total customers during the period.

(7)

Billed ARPU - Average monthly billed revenue per customer is calculated by dividing total retail service revenues by the number of months in the period and by the average total customers during the period. Retail service revenues include revenues attributable to postpaid, prepaid and reseller customers.

(8)

Postpaid ARPU - Average monthly revenue per postpaid customer is calculated by dividing total retail service revenues from postpaid customers by the number of months in the period and by the average postpaid customers during the period.

(9)

Represents the percentage of the postpaid customer base that disconnects service each month. This amount represents the average postpaid churn rate for each respective quarterly period.









TDS Telecom



Summary Operating Data (Unaudited)



















Quarter Ended


3/31/2012



12/31/2011



9/30/2011



6/30/2011



3/31/2011

TDS Telecom















ILEC:

















Residential Connections


















Physical access lines (1)


363,500



367,600



373,700



378,500



382,400




Broadband connections (2)


219,500



219,600



220,500



217,600



214,100




IPTV customers


4,900



4,600



4,500



4,300



4,000




   ILEC Residential Connections


587,900



591,800



598,700



600,400



600,500





















Commercial Connections


















Physical access lines (1)


112,600



114,400



116,500



117,800



118,800




Broadband connections (2)


18,200



18,200



17,900



17,600



17,300




managedIP connections (3)


10,800



8,600



6,800



5,800



4,700




   ILEC Commercial Connections


141,600



141,200



141,200



141,200



140,800



















CLEC:

















Residential Connections


















Physical access lines (1)


29,600



31,800



33,900



36,700



39,300




Broadband connections (2)


10,100



11,000



11,700



12,800



13,700




   CLEC Residential Connections


39,700



42,800



45,600



49,500



53,000





















Commercial Connections


















Physical access lines (1)


151,100



157,300



163,600



168,100



171,000




Broadband connections (2)


13,700



14,600



15,400



15,900



16,200




managedIP connections (3)


53,700



44,900



38,000



33,200



29,700




   CLEC Commercial Connections


218,500



216,800



217,000



217,200



216,900



















Total ILEC and CLEC customer connections


987,700



992,600



1,002,500



1,008,300



1,011,200



(1)

Individual circuits connecting customers to a telephone company's central office facilities.

(2)

The number of customers provided high-capacity data circuits via various technologies, including DSL and dedicated Internet circuit technologies.

(3)

The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.









TDS Telecom



Capital Expenditures (000s)



















Quarter Ended


3/31/2012



12/31/2011



9/30/2011



6/30/2011



3/31/2011

ILEC

$

27,500


$

50,300


$

36,500


$

34,500


$

20,500

CLEC


5,100



7,200



4,700



6,200



4,200

HMS


3,100



5,900



15,000



4,600



1,600





$

35,700


$

63,400


$

56,200


$

45,300


$

26,300





Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights


Three Months Ended March 31,


(Unaudited, dollars and shares in thousands, except per share amounts)

































 Increase/ (Decrease)






2012



2011



Amount



Percent


Operating revenues

















U.S. Cellular

$

1,092,121



$

1,057,092



$

35,029




3%



TDS Telecom


204,075




198,916




5,159




3%



All Other (1)


9,595




2,673




6,922




>100%







1,305,791




1,258,681




47,110




4%


Operating expenses

















U.S. Cellular


















Expenses excluding depreciation,

amortization and accretion


862,444




853,967




8,477




1%




Depreciation, amortization and accretion


146,685




143,340




3,345




2%




(Gain) loss on asset disposals and exchanges, net


(2,210)




1,037




(3,247)




>(100%)







1,006,919




998,344




8,575




1%



TDS Telecom


















Expenses excluding depreciation, amortization and accretion


143,420




121,769




21,651




18%




Depreciation, amortization and accretion


47,443




44,837




2,606




6%




(Gain) loss on asset disposals, net


120




104




16




15%







190,983




166,710




24,273




15%



All Other (1)


















Expenses excluding depreciation and amortization


10,946




2,116




8,830




>100%




Depreciation and amortization


3,306




2,636




670




25%




(Gain) loss on asset disposals, net


(5)




2




(7)




>(100%)







14,247




4,754




9,493




>100%
























Total operating expenses


1,212,149




1,169,808




42,341




4%


Operating income (loss)

















U.S. Cellular


85,202




58,748




26,454




45%



TDS Telecom


13,092




32,206




(19,114)




(59%)



All Other  (1)


(4,652)




(2,081)




(2,571)




>(100%)







93,642




88,873




4,769




5%


Investment and other income (expense)

















Equity in earnings of unconsolidated entities


23,389




19,388




4,001




21%



Interest and dividend income


2,183




2,624




(441)




(17%)



Interest expense


(24,464)




(26,509)




2,045




8%



Other, net


228




80




148




>100%




Total investment and other income (expense)


1,336




(4,417)




5,753




>100%


Income before income taxes


94,978




84,456




10,522




12%



Income tax expense


27,412




30,159




(2,747)




(9%)


Net income


67,566




54,297




13,269




24%



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


(15,312)




(10,793)




(4,519)




(42%)


Net income attributable to TDS shareholders


52,254




43,504




8,750




20%



Preferred dividend requirement


(12)




(12)




-




-


Net income available to common shareholders

$

52,242



$

43,492



$

8,750




20%





















Basic weighted average shares outstanding (2)


108,653




108,936




(283)




-


Basic earnings per share attributable to TDS shareholders (2)

$

0.48



$

0.40



$

0.08




20%





















Diluted weighted average shares outstanding (2)


109,098




109,715




(617)




(1%)


Diluted earnings per share attributable to TDS shareholders (2)

$

0.48



$

0.39



$

0.09




23%




(1)

Consists of Suttle Straus printing and distribution operations, Airadigm, corporate operations and intercompany eliminations.

(2)

On January 13, 2012, TDS shareholders approved a Share Consolidation Amendment to the Restated Certificate of Incorporation of TDS. Average basic and diluted shares outstanding used to calculate earnings per share for the comparative period presented have been retroactively restated to reflect the impact of the increased shares outstanding as a result of the Share Consolidation Amendment.


N/M – Percentage change not meaningful



Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited, dollars in thousands)









ASSETS




















March 31,


December 31,




2012


2011

Current assets







Cash and cash equivalents

$

639,130


$

563,275


Short-term investments


229,975



246,273


Accounts receivable from customers and others


495,409



542,577


Inventory


134,929



130,044


Net deferred income tax asset


40,898



40,898


Prepaid expenses


84,201



80,628


Income taxes receivable


9,314



85,636


Other current assets


18,117



16,349





1,651,973



1,705,680









Assets held for sale


-



49,647









Investments







Licenses


1,505,110



1,494,014


Goodwill


796,819



797,077


Other intangible assets, net


47,851



50,734


Investments in unconsolidated entities


191,644



173,710


Long-term investments


50,333



45,138


Other investments


1,096



3,072





2,592,853



2,563,745









Property, plant and equipment, net







U.S. Cellular


2,847,426



2,790,302


TDS Telecom


930,085



936,757


Other


46,222



57,476





3,823,733



3,784,535









Other assets and deferred charges


104,109



97,398









Total assets

$

8,172,668


$

8,201,005





Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights


(Unaudited, dollars in thousands)













LIABILITIES AND EQUITY




























March 31,



December 31,






2012



2011













Current liabilities









Current portion of long-term debt

$

1,420



$

1,509



Accounts payable


327,376




364,746



Customer deposits and deferred revenues


218,316




207,633



Accrued interest


16,518




7,456



Accrued taxes


46,671




41,069



Accrued compensation


54,990




107,719



Other current liabilities


94,536




144,001







759,827




874,133













Liabilities held for sale


-




1,051













Deferred liabilities and credits









Net deferred income tax liability


821,115




808,713



Other deferred liabilities and credits


391,397




383,567













Long-term debt


1,529,988




1,529,857













Noncontrolling interests with redemption features


1,064




1,005













Equity









TDS shareholders' equity










Series A Common and Common Shares, par value $.01 (1)


1,326




1,326




Capital in excess of par value (1)


2,278,384




2,268,711




Treasury shares at cost (1)


(746,988)




(750,921)




Accumulated other comprehensive loss


(8,695)




(8,854)




Retained earnings (1)


2,487,936




2,451,899





Total TDS shareholders' equity


4,011,963




3,962,161














Preferred shares


830




830



Noncontrolling interests


656,484




639,688















Total equity


4,669,277




4,602,679













Total liabilities and equity

$

8,172,668



$

8,201,005




(1)

The December 31, 2011 amounts reflect the impact of the Share Consolidation Amendment to the Restated Certificate of Incorporation of TDS, as approved by the TDS shareholders on January 13, 2012.



Balance Sheet Highlights

March 31, 2012

(Unaudited, dollars in thousands)






































U.S.


TDS


TDS Corporate


Intercompany


TDS




Cellular


Telecom


& Other


Eliminations


Consolidated

Cash and cash equivalents

$

511,078


$

66,080


$

61,972


$

-


$

639,130

Affiliated cash investments


-



345,458



-



(345,458)



-

Short-term investments


116,368



27,195



86,412



-



229,975



$

627,446


$

438,733


$

148,384


$

(345,458)


$

869,105


















Licenses, goodwill and other intangible assets

$

1,976,825


$

550,970


$

(178,015)


$

-


$

2,349,780

Investment in unconsolidated entities


154,431



3,813



39,049



(5,649)



191,644

Long-term and other investments


40,357



1,014



10,058



-



51,429




$

2,171,613


$

555,797


$

(128,908)


$

(5,649)


$

2,592,853



































Property, plant and equipment, net

$

2,847,426


$

930,085


$

46,222


$

-


$

3,823,733


















Long-term debt:
















Current portion

$

127


$

190


$

1,103


$

-


$

1,420


Non-current portion


880,486



1,733



647,769



-



1,529,988



Total

$

880,613


$

1,923


$

648,872


$

-


$

1,531,408


















Preferred shares

$

-


$

-


$

830


$

-


$

830



Telephone and Data Systems, Inc.

Schedule of Cash and Cash Equivalents and Investments

(Unaudited, dollars in thousands)

 

The following table presents TDS' cash and cash equivalents and investments at March 31, 2012 and December 31, 2011.














March 31,


December 31,




2012


2011












Cash and cash equivalents


$

639,130


$

563,275


Amounts included in short-term investments (1) (2)









Government-backed securities (3)




202,780



218,829



Certificates of deposit




27,195



27,444






$

229,975


$

246,273












Amounts included in long-term investments (1) (4)









Government-backed securities (3)



$

50,333


$

45,138



(1)

Designated as held-to-maturity investments and recorded at amortized cost in the Consolidated Balance Sheet.

(2)

Maturities are less than twelve months from the respective balance sheet dates.

(3)

Includes U.S. treasuries and corporate notes guaranteed under the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program.

(4)

At March 31, 2012, maturities range between 14 and 24 months.



Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

Three Months Ended March 31,

(Unaudited, dollars in thousands)














2012


2011

Cash flows from operating activities







Net income

$

67,566


$

54,297



Add (deduct) adjustments to reconcile net income to net









cash flows from operating activities










Depreciation, amortization and accretion


197,434



190,813





Bad debts expense


15,105



14,285





Stock-based compensation expense


10,330



9,459





Deferred income taxes, net


6,187



47,841





Equity in earnings of unconsolidated entities


(23,389)



(19,388)





Distributions from unconsolidated entities


2,938



8,439





(Gain) loss on asset disposals, net


(2,095)



1,143





Noncash interest expense


862



875





Other operating activities


852



1,159



Changes in assets and liabilities from operations










Accounts receivable


38,941



8,438





Inventory


(4,842)



2,978





Accounts payable


(25,372)



56,189





Customer deposits and deferred revenues


10,745



10,342





Accrued taxes


82,014



18,832





Accrued interest


9,117



15,072





Other assets and liabilities


(104,148)



(87,732)







282,245



333,042











Cash flows from investing activities







Cash used for additions to property, plant and equipment


(242,611)



(157,897)


Cash paid for acquisitions and licenses


(11,096)



-


Cash received from divestitures


50,036



-


Cash paid for investments


(10,000)



-


Cash received for investments


20,249



122,785


Transfer of cash to Restricted cash


-



(282,500)


Other investing activities


(436)



(1,503)







(193,858)



(319,115)











Cash flows from financing activities







Repayment of long-term debt


(493)



(402)


Issuance of long-term debt


358



300,000


TDS Common Shares and Special Common Shares








reissued for benefit plans, net of tax payments


(33)



587


U.S. Cellular Common Shares reissued for benefit








plans, net of tax payments


357



1,305


Repurchase of TDS Common and Special Common Shares


-



(11,603)


Repurchase of U.S. Cellular Common Shares


-



(17,357)


Dividends paid


(13,301)



(12,197)


Payment of debt issuance costs


-



(9,848)


Distributions to noncontrolling interests


(218)



(686)


Other financing activities


798



968







(12,532)



250,767











Net increase in cash and cash equivalents


75,855



264,694

Cash and cash equivalents







Beginning of period


563,275



341,683


End of period

$

639,130


$

606,377



TDS Telecom Highlights

Three Months Ended March 31,

(Unaudited, dollars in thousands)






























Increase (Decrease)





2012



2011



Amount


Percent

Local Telephone Operations















Operating revenues
















Residential

$

69,399