2014

U.S. Cellular Reports Third Quarter 2010 Results

CHICAGO, Nov. 4, 2010 /PRNewswire-FirstCall/ --

Note: Comparisons are year over year unless otherwise noted.

3Q 2010 Highlights

  • Service revenues were $983.5 million.
  • 31 percent increase in data revenues to $228.9 million, representing 23 percent of total service revenues compared to 18 percent in 2009.
  • Retail service ARPU (average revenue per unit) increased to $47.12 from $46.97.
  • 10 percent increase in diluted earnings per share attributable to U.S. Cellular shareholders.
  • A net loss of 25,000 retail postpaid customers and no change in prepaid customers.
  • Retail postpaid churn improved to 1.6 percent from 1.7 percent; postpaid customers comprised 94 percent of retail customers.
  • 5 percent increase in cell sites in service to 7,524.
  • Repurchased 446,668 common shares for $19.1 million.

As previously announced, U.S. Cellular will hold a teleconference Nov. 4, 2010 at 9:30 a.m. CDT. Interested parties may listen to the call live by accessing the Conference Calls page of www.teldta.com or uscellular.com.

United States Cellular Corporation (NYSE: USM) reported service revenues of $983.5 million for the third quarter of 2010, versus $983.9 million in the comparable period one year ago. Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $37.4 million and $0.43, respectively, for the third quarter of 2010, compared to $34.3 million and $0.39, respectively, in the comparable period one year ago.  

"Our third quarter results reflect a strong increase in data revenues driven by higher levels of smartphone penetration.  We also experienced renewed growth in roaming revenues and maintained our focus on cost control," said Mary N. Dillon, U.S. Cellular president and CEO. "These results were obtained while our organization was also focused on the execution of the October 1st launch of The Belief Project(SM), our set of industry-first programs, including One and Done Contracts and the Belief Rewards loyalty program.

"Since the launch, we've seen higher-than-expected levels of customer migration to the new, bundled Belief Plans, and we're confident that as customers experience all the benefits that are built into these plans, they will not only stay with us longer, but choose higher-value plans with additional features. As we build awareness in the wireless marketplace, we expect to see more customers switch from other carriers that don't offer the same level of value, rewards and overall customer satisfaction. And, in conjunction with the launch of the Belief Project, we upgraded our web site to make it easier for new and existing customers to select the best plans and products for them and manage their accounts online, which should stimulate sales and reduce selling costs over time.

"We've also bolstered our smartphone lineup significantly over the past few months with three new Android™-powered phones, including the popular Samsung Acclaim™, HTC Desire™ and Samsung Mesmerize™, a Galaxy S™ smartphone. We believe that this strong combination of popular phones, value-packed plans and exclusive services will help us stand out among wireless carriers and improve our growth and profitability over time."

Guidance

Guidance for the year ending Dec. 31, 2010 as of Nov. 4, 2010 is provided below, compared to the previous guidance provided on Aug. 5, 2010. There can be no assurance that final results will not differ materially from this guidance.




Current guidance

Previous guidance


Service revenues

$3,925-$3,975 million

$3,925-$4,000 million


Adjusted OIBDA(1)

$800-$850 million

Unchanged


Operating income(2)

$200-$250 million

Unchanged


Depreciation, amortization and accretion(2)

Approx. $600 million

Unchanged


Capital expenditures

Approx. $600 million

Unchanged


(1) Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization and accretion (OIBDA); the net gain or loss on asset disposals (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.

(2) The 2010 estimated results include estimated losses on disposals of assets, but does not include an estimate for losses on impairment of assets, since these cannot be predicted.



The 2010 benefits and expenses associated with the Belief Project were incorporated into U.S. Cellular's 2010 financial guidance from the beginning of the year.

The foregoing guidance represents the views of management as of Nov. 4, 2010 and should not be assumed to be accurate as of any other date. U.S. Cellular undertakes no legal duty to update such information, whether as a result of new information, future events or otherwise.

Conference call information

U.S. Cellular will hold a conference call on Nov. 4, 2010 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 Conference Calls page of uscellular.com. The call will be archived on the Conference Calls page of uscellular.com.

About U.S. Cellular

United States Cellular Corporation, the nation's sixth-largest wireless carrier, provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to approximately 6.1 million customers in 26 states. The Chicago-based company employed approximately 8,800 full-time equivalent associates as of September 30, 2010. At the end of the quarter, Telephone and Data Systems, Inc. owned 83% of U.S. Cellular.

Visit uscellular.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 economy; competition; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded our 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 unit, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services offered by the company; and the ability to obtain or maintain roaming arrangements with other carriers. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K used by U.S. Cellular to furnish this press release to the SEC, which are incorporated by reference herein.


United States Cellular Corporation

Summary Operating Data





















Quarter Ended


9/30/2010


6/30/2010


3/31/2010


12/31/2009


9/30/2009


Total population


















Consolidated markets (1)



90,468,000



90,468,000



90,468,000



89,712,000



85,118,000



Consolidated operating markets (1)



46,546,000



46,546,000



46,546,000



46,306,000



46,306,000


Market penetration at end of period


















Consolidated markets (2)



6.7%



6.8%



6.8%



6.8%



7.2%



Consolidated operating markets (2)



13.1%



13.2%



13.2%



13.3%



13.2%


All customers


















Total at end of period



6,103,000



6,144,000



6,147,000



6,141,000



6,131,000



Gross additions



338,000



349,000



358,000



399,000



386,000



Net additions (losses)



(41,000)



(3,000)



6,000



10,000



(24,000)


Retail customers


















Total at end of period



5,750,000



5,775,000



5,768,000



5,744,000



5,705,000



Gross additions



301,000



307,000



305,000



354,000



351,000



Net retail additions (losses) (3)



(25,000)



7,000



24,000



39,000



(6,000)




Net postpaid additions (losses)



(25,000)



(22,000)



(9,000)



26,000



8,000




Net prepaid additions (losses)





29,000



33,000



13,000



(14,000)


Service revenues components (000s)


















Voice and other retail service


$

636,912


$

648,565


$

663,759


$

677,107


$

690,576



Data service (6)



228,854



215,271



201,280



189,759



174,286



Total retail service


$

865,766


$

863,836


$

865,039


$

866,866


$

864,862



Inbound roaming



72,901



60,902



51,942



61,728



68,767



Other



44,836



47,838



48,027



56,814



50,289


Total service revenues (000s)


$

983,503


$

972,576


$

965,008


$

985,408


$

983,918






















Divided by average customers (000s)



6,124



6,151



6,137



6,139



6,138



Divided by three months in each quarter



3



3



3



3



3





















Average monthly revenue per unit (4)


$

53.53


$

52.71


$

52.41


$

53.51


$

53.43



Voice and other retail service (4)


$

34.66


$

35.14


$

36.05


$

36.77


$

37.51



Data service (4) (6)


$

12.46


$

11.67


$

10.93


$

10.30


$

9.46



Total retail service (4)


$

47.12


$

46.81


$

46.98


$

47.07


$

46.97





















Inbound roaming (4)


$

3.97


$

3.30


$

2.82


$

3.35


$

3.73



Other (4)


$

2.44


$

2.60


$

2.61


$

3.09


$

2.73


Postpaid churn rate (5)



1.6%



1.4%



1.4%



1.6%



1.7%


Capital expenditures (000s)


$

124,700


$

133,500


$

121,500


$

189,000


$

128,900


Cell sites in service



7,524



7,416



7,310



7,279



7,161



(1) Used only to calculate market penetration of consolidated markets and consolidated operating markets, respectively, which is calculated by dividing customers by the total market population (without duplication of population in overlapping markets).

(2) 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) Calculated by adding net postpaid additions (losses) and net prepaid additions (losses).

(4) Calculated by dividing the components of service revenues by the average customers and number of months in the quarter.

(5) Calculated by dividing the total postpaid customer disconnects during the quarter by the average postpaid customer base for the quarter.

(6) Effective for the fourth quarter of 2010, revenues from data products and services will no longer be separately disclosed as the determination of such revenues is increasingly dependent on allocations of bundled service prices to multiple bundled elements.




United States Cellular Corporation

Consolidated Statement of Operations Highlights

Three Months Ended September 30,

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































     Increase (Decrease)






2010 



2009 (1)



Amount


Percent


Operating revenues
















Service

$

983,503



$

983,918



$

(415)





Equipment sales


77,278




73,377




3,901



5%




Total operating revenues


1,060,781




1,057,295




3,486




Operating expenses
















System operations (excluding Depreciation,

















amortization and accretion reported below)


218,021




205,611




12,410



6%



Cost of equipment sold


189,291




189,354




(63)





Selling, general and administrative


446,938




454,645




(7,707)



(2%)



Depreciation, amortization and accretion


144,717




146,052




(1,335)



(1%)



Loss on asset disposals, net


1,981




2,085




(104)



(5%)




Total operating expenses


1,000,948




997,747




3,201






















Operating income


59,833




59,548




285






















Investment and other income (expense)
















Equity in earnings of unconsolidated entities


23,971




23,126




845



4%



Interest and dividend income


1,101




1,420




(319)



(22%)



Interest expense


(15,956)




(19,782)




3,826



19%



Other, net


(620)




905




(1,525)



    > (100)%






















Total investment and other income


8,496




5,669




2,827



50%




















Income before income taxes


68,329




65,217




3,112



5%



Income tax expense


25,051




25,279




(228)



(1%)




















Net income


43,278




39,938




3,340



8%



Less: Net income attributable to noncontrolling

















interests, net of tax


(5,920)




(5,606)




(314)



(6%)


Net income attributable to U.S. Cellular shareholders

$

37,358



$

34,332



$

3,026



9%


















Basic weighted average shares outstanding


85,992




86,848




(856)



(1%)


Basic earnings per share attributable to
















U.S. Cellular shareholders

$

0.43



$

0.40



$

0.03



7%




















Diluted weighted average shares outstanding


86,428




87,128




(700)



(1%)


Diluted earnings per share attributable to
















U.S. Cellular shareholders

$

0.43



$

0.39



$

0.04



10%



(1) Amounts have been adjusted. See "Revision of Prior Period Amounts" section for additional details.




United States Cellular Corporation

Consolidated Statement of Operations Highlights

Nine Months Ended September 30,

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































     Increase (Decrease)






2010 



2009 (1)



Amount


Percent


Operating revenues
















Service

$

2,921,087



$

2,941,720



$

(20,633)



(1%)



Equipment sales


193,444




212,062




(18,618)



(9%)





Total operating revenues


3,114,531




3,153,782




(39,251)



(1%)


Operating expenses
















System operations (excluding Depreciation,
















     amortization and accretion reported below)


638,677




600,308




38,369



6%



Cost of equipment sold


512,361




531,110




(18,749)



(4%)



Selling, general and administrative


1,321,720




1,274,261




47,459



4%



Depreciation, amortization and accretion


432,405




422,707




9,698



2%



Loss on asset disposals, net


8,407




8,641




(234)



(3%)





Total operating expenses


2,913,570




2,837,027




76,543



3%




















Operating income


200,961




316,755




(115,794)



(37%)




















Investment and other income (expense)
















Equity in earnings of unconsolidated entities


74,418




73,247




1,171



2%



Interest and dividend income


2,984




2,648




336



13%



Interest expense


(48,918)




(59,065)




10,147



17%



Other, net


(213)




1,183




(1,396)







Total investment and other income


28,271




18,013




10,258



57%




















Income before income taxes


229,232




334,768




(105,536)



(32%)



Income tax expense


86,894




117,026




(30,132)



(26%)




















Net income


142,338




217,742




(75,404)



(35%)



Less: Net income attributable to noncontrolling


















interests, net of tax


(16,858)




(17,583)




725



4%


Net income attributable to U.S. Cellular shareholders

$

125,480



$

200,159



$

(74,679)



(37%)




















Basic weighted average shares outstanding


86,329




87,011




(682)



(1%)


Basic earnings per share attributable to
















U.S. Cellular shareholders

$

1.45



$

2.30



$

(0.85)



(37%)




















Diluted weighted average shares outstanding


86,706




87,216




(510)



(1%)


Diluted earnings per share attributable to
















U.S. Cellular shareholders

$

1.45



$

2.29



$

(0.84)



(37%)



(1) Amounts have been adjusted. See "Revision of Prior Period Amounts" section for additional details.




United States Cellular Corporation

Consolidated Balance Sheet Highlights


(Unaudited, dollars in thousands)











ASSETS













September 30,



December 31,




2010 



2009 (1)


Current assets









Cash and cash equivalents

$

269,292



$

294,411



Short-term investments


120,771




330



Accounts receivable from customers and others


415,107




425,057



Inventory


119,882




152,556



Prepaid income taxes


32,086




717



Prepaid expenses


70,759




63,463



Net deferred income tax asset


21,570




21,570



Other current assets


49,111




51,013





1,098,578




1,009,117











Investments









Licenses


1,445,501




1,435,000



Goodwill


494,737




494,737



Customer lists


869




4,083



Investments in unconsolidated entities


177,075




161,481



Notes and interest receivable – long-term


4,107




4,214



Long-term investments


46,156








2,168,445




2,099,515











Property, plant and equipment









In service and under construction


6,203,085




5,884,307



Less: accumulated depreciation


3,649,212




3,282,969





2,553,873




2,601,338











Other assets and deferred charges


38,195




38,776











Total assets

$

5,859,091



$

5,748,746



(1) Amounts have been adjusted. See "Revision of Prior Period Amounts" section for additional details.




United States Cellular Corporation

Consolidated Balance Sheet Highlights


(Unaudited, dollars in thousands)












LIABILITIES AND SHAREHOLDERS' EQUITY















September 30,



December 31,





2010 



2009 (1)


Current liabilities









Current portion of long-term debt

$

91



$

76



Accounts payable










Affiliated


6,291




14,732




Trade


245,542




296,288



Customer deposits and deferred revenues


142,220




140,248



Accrued taxes


78,686




57,507



Accrued compensation


57,207




62,242



Other current liabilities


88,216




92,884






618,253




663,977












Deferred liabilities and credits









Net deferred income tax liability


559,746




513,994



Other deferred liabilities and credits


269,333




262,412












Long-term debt


867,790




867,522












Commitments and contingencies


















Noncontrolling interests with mandatory redemption features


791




727












Equity








U.S. Cellular shareholders' equity









Series A Common and Common Shares, par value $1 per share


88,074




88,074



Additional paid-in capital


1,364,266




1,356,322



Treasury shares


(97,109)




(69,616)



Retained earnings


2,126,825




2,013,633




Total U.S. Cellular shareholders' equity


3,482,056




3,388,413












Noncontrolling interests


61,122




51,701













Total equity


3,543,178




3,440,114












Total liabilities and equity

$

5,859,091



$

5,748,746



(1) Amounts have been adjusted. See "Revision of Prior Period Amounts" section for additional details.



United States Cellular Corporation

Schedule of Cash and Cash Equivalents and Investments

(Unaudited, dollars in thousands)


In an effort to improve investment returns, during the third quarter of 2010, U.S. Cellular elected to use a portion of its cash balance to directly purchase government-backed securities, specifically U.S. treasury securities and securities insured by the Federal Deposit Insurance Corporation ("FDIC").  The maturity dates of such direct investments were staggered in order to maintain cash balances and liquidity at targeted levels.  U.S. Cellular also continues to invest in certificates of deposit that are insured by the FDIC.  The following table presents U.S. Cellular's cash and cash equivalents; and investments in government-backed securities and certificates of deposit at September 30, 2010 and December 31, 2009.








September 30,


December 31,



2010 


2009 










Cash and cash equivalents


$

269,292


$

294,411

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








Government-backed securities (3)




120,521




Certificates of deposit




250



330





$

120,771


$

330

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








Government-backed securities (3)



$

46,156


$


(1) Designated as held-to-maturity investments and are recorded at amortized cost on 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 FDIC's Temporary Liquidity Guarantee Program.

(4) Maturities range between 14 and 25 months from the balance sheet date.




United States Cellular Corporation

Consolidated Statement of Cash Flows

Nine Months Ended September 30,

(Unaudited, dollars in thousands)

























2010 



2009 (1)

Cash flows from operating activities








Net income

$

142,338



$

217,742


Add (deduct) adjustments to reconcile net income to net









cash flows from operating activities










Depreciation, amortization and accretion


432,405




422,707




Bad debts expense


56,244




73,100




Stock-based compensation expense


13,539




13,000




Deferred income taxes, net


50,180




44,486




Equity in earnings of unconsolidated entities


(74,418)




(73,247)




Distributions from unconsolidated entities


59,149




51,306




Loss on asset disposals, net


8,407




8,641




Other operating activities


106




1,824


Changes in assets and liabilities from operations










Accounts receivable


(46,293)




(106,380)




Inventory


32,673




(4,509)




Accounts payable - trade


(50,720)




(13,432)




Accounts payable - affiliate


(8,440)




(980)




Customer deposits and deferred revenues


1,972




(6,185)




Accrued taxes


(19,491)




68,695




Accrued interest


9,295




9,787




Other assets and liabilities


(22,933)




(68,861)






584,013




637,694

Cash flows from investing activities








Additions to property, plant and equipment


(379,692)




(357,770)


Cash paid for acquisitions and licenses


(10,501)




(12,527)


Cash paid for investments


(190,250)




(275)


Cash received for investments


25,330





Other investing activities


656




1,682






(554,457)




(368,890)

Cash flows from financing activities








Common shares reissued for benefit plans, net of tax payments


738




(119)


Common shares repurchased


(40,520)




(24,283)


Payment of debt issuance costs





(4,416)


Distributions to noncontrolling interests


(5,828)




(5,855)


Other financing activities


(9,065)




(233)






(54,675)




(34,906)











Net increase (decrease) in cash and cash equivalents


(25,119)




233,898











Cash and cash equivalents








Beginning of period


294,411




170,996


End of period

$

269,292



$

404,894


(1) Amounts have been adjusted. See "Revision of Prior Period Amounts" section for additional details.





United States Cellular Corporation

Financial Measures and Reconciliations


(Unaudited, dollars in thousands)






















Three Months Ended September 30,



Nine Months Ended September 30,




2010


2009 (5)



2010


2009 (5)





















Service revenues


$

983,503


$

983,918



$

2,921,087


$

2,941,720





















Operating income



59,833



59,548




200,961



316,755



Add:

















Depreciation, amortization and accretion



144,717



146,052




432,405



422,707




Loss on asset disposals



1,981



2,085




8,407



8,641





Adjusted OIBDA (1)(4)


$

206,531


$

207,685



$

641,773


$

748,103























Adjusted OIBDA margin (2)



21.0%



21.1%




22.0%



25.4%






































2010



2009




2010



2009





















Cash flows from operating activities


$

180,307


$

264,571



$

584,013


$

637,694



Deduct:

















Capital expenditures



124,688



128,868




379,692



357,770





Free cash flow (3)


$

55,619


$

135,703



$

204,321


$

279,924


(1) Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization, and accretion (OIBDA); the net gain or loss on asset disposals (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.

(2) Adjusted OIBDA margin is defined as adjusted OIBDA divided by service revenues. Equipment revenues are excluded from the denominator of the calculation since equipment is generally sold at a net negative margin, and the equipment subsidy is effectively a cost for purposes of assessing business results.  U.S. Cellular believes that this calculation method is consistent with the method used by certain investors to assess U.S. Cellular's business results.  Adjusted OIBDA margin may also be commonly referred to by management as operating cash flow margin.

(3) Free cash flow is defined as cash flows from operating activities minus capital expenditures. Free cash flow is a non-GAAP financial measure.  U.S. Cellular believes that free cash flow as reported by U.S. Cellular is useful to investors and other users of its financial information in evaluating the amount of cash generated by business operations, after consideration of capital expenditures.

(4) Adjusted OIBDA excludes the net gain or loss on asset disposals and loss on impairment of assets, if any, in order to show operating results on a more comparable basis from period to period.  U.S. Cellular 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.

(5) Amounts have been adjusted. See "Revision of Prior Period Amounts" section for additional details.    



Revision of Prior Period Amounts

In preparing its financial statements for the three months ended March 31, 2010, U.S. Cellular discovered certain errors related to accounting for operating revenues and sales tax liabilities. The quantification of these errors was subsequently refined during the second quarter of 2010. These errors resulted in the overstatement of operating revenues and understatement of sales tax liabilities for the years ended December 31, 2009, 2008, 2007, and the three months ended March 31, 2010. In addition to recording these adjustments, U.S. Cellular recorded other adjustments to prior-period amounts to correct other immaterial items. In accordance with SEC Staff Accounting Bulletin Nos. 99 and 108 ("SAB 99 and SAB 108"), U.S. Cellular evaluated these errors and determined that they were immaterial to each of the reporting periods affected and, therefore, amendment of previously filed reports was not required. However, if the adjustments to correct the cumulative errors had been recorded in the first or second quarter of 2010, U.S. Cellular believes the impact would have been significant to those respective periods and would impact comparisons to prior periods. As permitted by SAB 108, U.S. Cellular revised in the current filing its comparative consolidated financial statements for these immaterial amounts. In addition, on August 5, 2010, U.S. Cellular filed a Current Report on Form 8-K (Items 8.01 and 9.01) with the SEC to revise financial statements and other financial information previously included in its Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Report on Form 10-Q for the period ended March 31, 2010.  Such Form 8-K contains revisions to the December 31, 2009 Consolidated Balance Sheet, originally filed on February 25, 2010 in TDS' Annual Report on Form 10-K.  Also, in accordance with SAB 108, the Consolidated Balance Sheet, the Consolidated Statement of Operations and the Consolidated Statement of Cash Flows for the following comparative periods have been revised as follows:  

















Consolidated Balance Sheet — September 30, 2009





















As previously










(Dollars in thousands)

reported (1)


Adjustment


Revised















Accounts receivable - Due from customers

$

338,852



$

3,817



$

342,669



Prepaid expenses


63,020




8,413




71,433



Total current assets


1,114,320




12,230




1,126,550



Total assets


5,841,825




12,230




5,854,055



Customer deposits and deferred revenues


146,224




(2,241)




143,983



Accrued taxes


56,500




23,193




79,693



Total current liabilities


615,967




20,952




636,919



Other deferred liabilities and credits


250,762




1,314




252,076



Total deferred liabilities and credits


769,007




1,314




770,321



Retained earnings


2,020,710




(10,036)




2,010,674



Total U.S. Cellular shareholders' equity


3,398,416




(10,036)




3,388,380



Total equity


3,458,591




(10,036)




3,448,555



Total liabilities and equity


5,841,825




12,230




5,854,055




























Consolidated Statement of Operations — Three Months Ended September 30, 2009






















As previously










(Dollars in thousands, except per share amounts)

reported (1)


Adjustment


Revised

















Service revenues

$

984,923



$

(1,005)



$

983,918



Total operating revenues


1,058,300




(1,005)




1,057,295



System operations expenses (excluding Depreciation,













  amortization and accretion)


205,458




153




205,611



Selling, general and administrative expenses


454,839




(194)




454,645



Depreciation, amortization and accretion


147,586




(1,534)




146,052



Loss on asset disposals, net


3,371




(1,286)




2,085



Total operating expenses


1,000,608




(2,861)




997,747



Operating income


57,692




1,856




59,548



Interest expense


(19,358)




(424)




(19,782)



Total investment and other income (expense)


6,093




(424)




5,669



Income before income taxes


63,785




1,432




65,217



Income tax expense


22,541




2,738




25,279



Net income


41,244




(1,306)




39,938



Net income attributable to U.S. Cellular shareholders


35,638




(1,306)




34,332



Basic earnings per share attributable to U.S. Cellular shareholders


0.41




(0.01)




0.40



Diluted earnings per share attributable to U.S. Cellular shareholders


0.41




(0.02)




0.39
































Consolidated Statement of Operations — Nine Months Ended September 30, 2009




















As previously










(Dollars in thousands, except per share amounts)

reported (1)


Adjustment


Revised















Service revenues

$

2,941,552



$

168



$

2,941,720



Total operating revenues


3,153,614




168




3,153,782



System operations expenses (excluding Depreciation,













  amortization and accretion)


600,267




41




600,308



Selling, general and administrative expenses


1,277,357




(3,096)




1,274,261



Depreciation, amortization and accretion


423,851




(1,144)




422,707



Loss on asset disposals, net


7,648




993




8,641



Total operating expenses


2,840,233




(3,206)




2,837,027



Operating income


313,381




3,374




316,755



Interest expense


(57,767)




(1,298)




(59,065)



Total investment and other income (expense)


19,311




(1,298)




18,013



Income before income taxes


332,692




2,076




334,768



Income tax expense


111,521




5,505




117,026



Net income


221,171




(3,429)




217,742



Net income attributable to U.S. Cellular shareholders


203,588




(3,429)




200,159



Basic earnings per share attributable to U.S. Cellular shareholders


2.34




(0.04)




2.30



Diluted earnings per share attributable to U.S. Cellular shareholders


2.33




(0.04)




2.29






























Consolidated Statement of Cash Flows — Nine Months Ended September 30, 2009




















As previously










(Dollars in thousands)

reported (1)


Adjustment


Revised















Net income

$

221,171



$

(3,429)



$

217,742



Depreciation, amortization and accretion


423,851




(1,144)




422,707



Deferred income taxes, net


44,429




57




44,486



Loss on asset disposals, net


7,648




993




8,641



Change in accounts receivable


(101,263)




(5,117)




(106,380)



Change in customer deposits and deferred revenues


(4,858)




(1,327)




(6,185)



Change in accrued taxes


58,139




10,556




68,695



Change in other assets and liabilities


(68,272)




(589)




(68,861)



Cash flows from operating activities


637,694







637,694



(1) In Quarterly Report on Form 10-Q for the period ended September 30, 2009 filed on November 5, 2009.



SOURCE United States Cellular Corporation



RELATED LINKS
http://www.uscellular.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.