UNITED STATES CELLULAR CORP
For the period ended Dec 31, 2024. Filed Feb 21, 2025.
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FY2024 · Filed Feb 21, 2025
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Financial Overview – UScellular
The following discussion and analysis compares financial results for the year ended December 31, 2024, to the year ended December 31, 2023 and the year ended December 31, 2023, to the year ended December 31, 2022.
| Year Ended December 31, | 2024 | 2023 | 2022 | 2024 vs. 2023 | 2023 vs. 2022 |
|---|---|---|---|---|---|
| (Dollars in millions) | |||||
| Operating Revenues | |||||
| Wireless | $3,667 | $3,805 | $4,076 | (4)% | (7)% |
| Towers | 234 | 228 | 216 | 3% | 5% |
| Intra-company eliminations | (131) | (127) | (123) | (3)% | (3)% |
| Total operating revenues | 3,770 | 3,906 | 4,169 | (3)% | (6)% |
| Operating expenses | |||||
| Wireless | 3,757 | 3,743 | 4,075 | — | (8)% |
| Towers | 156 | 151 | 148 | 3% | 2% |
| Intra-company eliminations | (131) | (127) | (123) | (3)% | (3)% |
| Total operating expenses | 3,782 | 3,767 | 4,100 | — | (8)% |
| Operating income (loss) | (12) | 139 | 69 | N/M | N/M |
| Investment and other income (expense) | |||||
| Equity in earnings of unconsolidated entities | 161 | 158 | 158 | 2% | — |
| Interest and dividend income | 12 | 10 | 8 | 19% | 26% |
| Interest expense | (183) | (196) | (163) | 7% | (21)% |
| Total investment and other income (expense) | (10) | (28) | 3 | 63% | N/M |
| Income (loss) before income taxes | (22) | 111 | 72 | N/M | 54% |
| Income tax expense | 10 | 53 | 37 | (82)% | 43% |
| Net income (loss) | (32) | 58 | 35 | N/M | 67% |
| Less: Net income attributable to noncontrolling interests, net of tax | 7 | 4 | 5 | N/M | (24)% |
| Net income (loss) attributable to UScellular shareholders | $(39) | $54 | $30 | N/M | 80% |
| Adjusted OIBDA (Non-GAAP)1 | $845 | $818 | $790 | 3% | 4% |
| Adjusted EBITDA (Non-GAAP)1 | $1,018 | $986 | $956 | 3% | 3% |
| Capital expenditures2 | $577 | $611 | $717 | (6)% | (15)% |
1 Refer to Supplemental Information Relating to Non-GAAP Financial Measures within this MD&A for a reconciliation of this measure.
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 $62 million and $65 million for 2024 and 2023, respectively. See Note 9 — Investments in Unconsolidated Entities in the Notes to Consolid ated Financial Statements for additional information.
Interest expense
Interest expense decreased in 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 in 2024 due primarily to the deferred tax impact of the wireless spectrum license impairment charge recorded in the third quarter of 2024.
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 $65 million for both 2023 and 2022. See Note 9 — Investments in Unconsolidated Entities in the Notes to Consolid ated Financial Statements for additional information.
Interest expense
Interest expense increased in 2023 due primarily to interest rate increases on variable rate debt. See Market Risk for additional information regarding maturities of long-term debt and weighted average interest rates.
Income tax expense
Income tax expense increased in 2023 due primarily to the increase in Income before income taxes.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.