UNITED STATES CELLULAR CORP
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 1, 2024
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Financial Overview UScellular
| Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 vs. 2023 | 2024 | 2023 | 2024 vs. 2023 | |
| (Dollars in millions) | ||||||
| Operating Revenues | ||||||
| Wireless | $896 | $938 | (4)% | $2,722 | $2,831 | (4)% |
| Towers | 59 | 57 | 2% | 175 | 170 | 3% |
| Intra-company eliminations | (33) | (32) | (3)% | (98) | (95) | (3)% |
| Total operating revenues | 922 | 963 | (4)% | 2,799 | 2,906 | (4)% |
| Operating expenses | ||||||
| Wireless | 1,005 | 900 | 12% | 2,784 | 2,770 | 1% |
| Towers | 40 | 38 | 4% | 116 | 114 | 1% |
| Intra-company eliminations | (33) | (32) | (3)% | (98) | (95) | (3)% |
| Total operating expenses | 1,012 | 906 | 12% | 2,802 | 2,789 | — |
| Operating income (loss) | (90) | 57 | N/M | (3) | 117 | N/M |
| Investment and other income (expense) | ||||||
| Equity in earnings of unconsolidated entities | 43 | 40 | 9% | 123 | 121 | 2% |
| Interest and dividend income | 4 | 3 | 28% | 9 | 8 | 17% |
| Interest expense | (49) | (50) | 2% | (137) | (147) | 6% |
| Total investment and other expense | (2) | (7) | 80% | (5) | (18) | 68% |
| Income (loss) before income taxes | (92) | 50 | N/M | (8) | 99 | N/M |
| Income tax expense (benefit) | (14) | 27 | N/M | 29 | 56 | (50)% |
| Net income (loss) | (78) | 23 | N/M | (37) | 43 | N/M |
| Less: Net income attributable to noncontrolling interests, net of tax | 1 | — | (19)% | 7 | 3 | N/M |
| Net income (loss) attributable to UScellular shareholders | $(79) | $23 | N/M | $(44) | $40 | N/M |
| Adjusted OIBDA (Non-GAAP)1 | $222 | $220 | 1% | $678 | $624 | 9% |
| Adjusted EBITDA (Non-GAAP)1 | $269 | $263 | 3% | $810 | $753 | 8% |
| Capital expenditures2 | $120 | $111 | 8% | $415 | $462 | (10)% |
2 Refer to Liquidity and Capital Resources within this MD&A for additional information on Capital expenditures.
Refer to individual segment discussions in this MD&A for additional details on operating revenues and expenses at the segment level.
Equity in earnings of unconsolidated entities
Equity in earnings of unconsolidated entities represents UScellular’s share of net income from entities in which it has a noncontrolling interest and that are accounted for using the equity method or the net asset value practical expedient. UScellular’s investment in the Los Angeles SMSA Limited Partnership (LA Partnership) contributed pre-tax income of $16 million and $14 million for the three months ended September 30, 2024 and 2023, respectively and $48 million and $52 million for the nine months ended September 30, 2024 and 2023, respectively. See Note 9 — Investments in Unconsolidated Entities in the Notes to Consolidated Financial Statements for additional information.
Interest expense
Interest expense decreased for the three and nine months ended September 30, 2024 due primarily to a decrease in the average principal balance outstanding on the receivables securitization agreement. See Market Risk for additional information regarding maturities of long-term debt and weighted average interest rates.
Income tax expense
Income tax expense decreased for the three and nine months ended September 30, 2024, due primarily to the deferred tax benefit on the impairment of certain wireless spectrum licenses recorded in the third quarter of 2024.
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