EX-99.1 2 usm2024projectodysseyex991.htm EX-99.1
Exhibit 99.1
United States Cellular Corporation
Financial Highlights by Segment
(Unaudited)

UScellular Consolidated | Q1 2024 |  |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service 1 | $ | 754 |  |  |  |  |  |  |  |  |
Equipment sales | 196 |  |  |  |  |  |  |  |  |
Total operating revenues | 950 |  |  |  |  |  |  |  |  |
System operations (excluding Depreciation, amortization and accretion reported below) | 182 |  |  |  |  |  |  |  |  |
Cost of equipment sold | 216 |  |  |  |  |  |  |  |  |
Selling, general and administrative | 331 |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 165 |  |  |  |  |  |  |  |  |
(Gain) loss on asset disposals, net | 6 |  |  |  |  |  |  |  |  |
(Gain) loss on license sales and exchanges, net | (1) |  |  |  |  |  |  |  |  |
Operating income | 51 |  |  |  |  |  |  |  |
Equity in earnings of unconsolidated entities | 42 |  |  |  |  |  |  |  |  |
Interest and dividend income | 2 |  |  |  |  |  |  |  |  |
Interest expense | (43) |  |  |  |  |  |  |  |  |
Income before income taxes | 52 |  |  |  |  |  |  |  |  |
Income tax expense | 28 |  |  |  |  |  |  |  |  |
Net income | 24 |  |  |  |  |  |  |  |  |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 165 |  |  |  |  |  |  |  |  |
Expenses related to strategic alternatives review | 7 |  |  |  |  |  |  |  |  |
(Gain) loss on asset disposals, net | 6 |  |  |  |  |  |  |  |  |
(Gain) loss on license sales and exchanges, net | (1) |  |  |  |  |  |  |  |  |
Interest expense | 43 |  |  |  |  |  |  |  |  |
Income tax expense | 28 |  |  |  |  |  |  |  |  |
Adjusted EBITDA (Non-GAAP)2 | $ | 272 |  |  |  |  |  |  |  |  |

Wireless | Q1 2024 |  |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service | $ | 729 |  |  |  |  |  |  |  |  |
Equipment sales | 196 |  |  |  |  |  |  |  |  |
Total operating revenues | 925 |  |  |  |  |  |  |  |  |
System operations (excluding Depreciation, amortization and accretion reported below) | 197 |  |  |  |  |  |  |  |  |
Cost of equipment sold | 216 |  |  |  |  |  |  |  |  |
Selling, general and administrative | 324 |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 154 |  |  |  |  |  |  |  |  |
(Gain) loss on asset disposals, net | 6 |  |  |  |  |  |  |  |  |
(Gain) loss on license sales and exchanges, net | (1) |  |  |  |  |  |  |  |  |
Operating income | 29 |  |  |  |  |  |  |  |  |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 154 |  |  |  |  |  |  |  |  |
Expenses related to strategic alternatives review | 7 |  |  |  |  |  |  |  |  |
(Gain) loss on asset disposals, net | 6 |  |  |  |  |  |  |  |  |
(Gain) loss on license sales and exchanges, net | (1) |  |  |  |  |  |  |  |  |
Adjusted EBITDA (Non-GAAP)2 | $ | 195 |  |  |  |  |  |  |  |  |

Towers | Q1 2024 |  |  |  |  |  |  |  |
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service - Third-Party | $ | 25 |  |  |  |  |  |  |  |  |
Service - Intracompany | 33 |  |  |  |  |  |  |  |  |
Total operating revenues | 58 |  |  |  |  |  |  |  |  |
System operations (excluding Depreciation, amortization and accretion reported below) | 18 |  |  |  |  |  |  |  |  |
Selling, general and administrative | 7 |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 11 |  |  |  |  |  |  |  |  |
Operating income | 22 |  |  |  |  |  |  |  |  |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 11 |  |  |  |  |  |  |  |  |
Adjusted EBITDA (Non-GAAP)2 | $ | 33 |  |  |  |  |  |  |  |  |

UScellular Consolidated | Q1 2023 |  | Q2 2023 |  | Q3 2023 |  | Q4 2023 |  | Full Year 2023
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service 1 | $ | 767 |  |  | $ | 760 |  |  | $ | 762 |  |  | $ | 755 |  |  | $ | 3,044 |
Equipment sales | 219 |  |  | 197 |  |  | 201 |  |  | 245 |  |  | 862 |
Total operating revenues | 986 |  |  | 957 |  |  | 963 |  |  | 1,000 |  |  | 3,906 |
System operations (excluding Depreciation, amortization and accretion reported below) | 182 |  |  | 190 |  |  | 185 |  |  | 183 |  |  | 740 |
Cost of equipment sold | 253 |  |  | 228 |  |  | 228 |  |  | 280 |  |  | 988 |
Selling, general and administrative | 345 |  |  | 341 |  |  | 333 |  |  | 349 |  |  | 1,368 |
Depreciation, amortization and accretion | 170 |  |  | 161 |  |  | 159 |  |  | 166 |  |  | 656 |
(Gain) loss on asset disposals, net | 10 |  |  | 3 |  |  | 1 |  |  | 3 |  |  | 17 |
(Gain) loss on license sales and exchanges, net | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Operating income | 26 |  | 34 |  |  | 57 |  |  | 21 |  |  | 139 |
Equity in earnings of unconsolidated entities | 44 |  |  | 38 |  |  | 40 |  |  | 37 |  |  | 158 |
Interest and dividend income | 2 |  |  | 3 |  |  | 3 |  |  | 2 |  |  | 10 |
Interest expense | (47) |  |  | (51) |  |  | (50) |  |  | (49) |  |  | (196) |
Income before income taxes | 25 |  |  | 24 |  |  | 50 |  |  | 11 |  |  | 111 |
Income tax expense (benefit) | 11 |  |  | 19 |  |  | 27 |  |  | (4) |  |  | 53 |
Net income | 14 |  |  | 5 |  |  | 23 |  |  | 15 |  |  | 58 |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 170 |  |  | 161 |  |  | 159 |  |  | 166 |  |  | 656 |
Expenses related to strategic alternatives review | — |  |  | — |  |  | 3 |  |  | 6 |  |  | 8 |
(Gain) loss on asset disposals, net | 10 |  |  | 3 |  |  | 1 |  |  | 3 |  |  | 17 |
(Gain) loss on license sales and exchanges, net | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Interest expense | 47 |  |  | 51 |  |  | 50 |  |  | 49 |  |  | 196 |
Income tax expense (benefit) | 11 |  |  | 19 |  |  | 27 |  |  | (4) |  |  | 53 |
Adjusted EBITDA (Non-GAAP)2 | $ | 252 |  |  | $ | 239 |  |  | $ | 263 |  |  | $ | 233 |  |  | $ | 986 |

Wireless | Q1 2023 |  | Q2 2023 |  | Q3 2023 |  | Q4 2023 |  | Full Year 2023
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service | $ | 742 |  |  | $ | 735 |  |  | $ | 737 |  |  | $ | 730 |  |  | $ | 2,943 |
Equipment sales | 219 |  |  | 197 |  |  | 201 |  |  | 245 |  |  | 862 |
Total operating revenues | 961 |  |  | 932 |  |  | 938 |  |  | 975 |  |  | 3,805 |
System operations (excluding Depreciation, amortization and accretion reported below) | 197 |  |  | 203 |  |  | 199 |  |  | 197 |  |  | 794 |
Cost of equipment sold | 253 |  |  | 228 |  |  | 228 |  |  | 280 |  |  | 988 |
Selling, general and administrative | 336 |  |  | 333 |  |  | 324 |  |  | 340 |  |  | 1,334 |
Depreciation, amortization and accretion | 158 |  |  | 149 |  |  | 148 |  |  | 155 |  |  | 610 |
(Gain) loss on asset disposals, net | 10 |  |  | 3 |  |  | 1 |  |  | 5 |  |  | 19 |
(Gain) loss on license sales and exchanges, net | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Operating income | 7 |  |  | 16 |  |  | 38 |  |  | — |  |  | 62 |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 158 |  |  | 149 |  |  | 148 |  |  | 155 |  |  | 610 |
Expenses related to strategic alternatives review | — |  |  | — |  |  | 3 |  |  | 6 |  |  | 8 |
(Gain) loss on asset disposals, net | 10 |  |  | 3 |  |  | 1 |  |  | 5 |  |  | 19 |
(Gain) loss on license sales and exchanges, net | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Adjusted EBITDA (Non-GAAP)2 | $ | 175 |  |  | $ | 168 |  |  | $ | 190 |  |  | $ | 164 |  |  | $ | 697 |

Towers | Q1 2023 |  | Q2 2023 |  | Q3 2023 |  | Q4 2023 |  | Full Year 2023
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service - Third-Party | $ | 25 |  |  | $ | 25 |  |  | $ | 25 |  |  | $ | 25 |  |  | $ | 101 |
Service - Intracompany | 32 |  |  | 32 |  |  | 32 |  |  | 32 |  |  | 127 |
Total operating revenues | 57 |  |  | 57 |  |  | 57 |  |  | 57 |  |  | 228 |
System operations (excluding Depreciation, amortization and accretion reported below) | 17 |  |  | 19 |  |  | 18 |  |  | 18 |  |  | 73 |
Selling, general and administrative | 9 |  |  | 8 |  |  | 9 |  |  | 9 |  |  | 34 |
Depreciation, amortization and accretion | 12 |  |  | 12 |  |  | 11 |  |  | 11 |  |  | 46 |
(Gain) loss on asset disposals, net | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Operating income | 19 |  |  | 18 |  |  | 19 |  |  | 21 |  |  | 77 |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 12 |  |  | 12 |  |  | 11 |  |  | 11 |  |  | 46 |
(Gain) loss on asset disposals, net | — |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Adjusted EBITDA (Non-GAAP)2 | $ | 31 |  |  | $ | 30 |  |  | $ | 30 |  |  | $ | 30 |  |  | $ | 121 |

UScellular Consolidated | Q1 2022 |  | Q2 2022 |  | Q3 2022 |  | Q4 2022 |  | Full Year 2022
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service 1 | $ | 787 |  |  | $ | 783 |  |  | $ | 781 |  |  | $ | 774 |  |  | $ | 3,125 |
Equipment sales | 223 |  |  | 244 |  |  | 302 |  |  | 274 |  |  | 1,044 |
Total operating revenues | 1,010 |  |  | 1,027 |  |  | 1,083 |  |  | 1,048 |  |  | 4,169 |
System operations (excluding Depreciation, amortization and accretion reported below) | 185 |  |  | 192 |  |  | 197 |  |  | 181 |  |  | 755 |
Cost of equipment sold | 257 |  |  | 275 |  |  | 354 |  |  | 330 |  |  | 1,216 |
Selling, general and administrative | 325 |  |  | 339 |  |  | 369 |  |  | 374 |  |  | 1,408 |
Depreciation, amortization and accretion | 171 |  |  | 172 |  |  | 177 |  |  | 179 |  |  | 700 |
Loss on impairment of licenses | — |  |  | 3 |  |  | — |  |  | — |  |  | 3 |
(Gain) loss on asset disposals, net | 2 |  |  | 6 |  |  | 1 |  |  | 11 |  |  | 19 |
(Gain) loss on sale of business and other exit costs, net | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Operating income (loss) | 71 |  |  | 40 |  |  | (15) |  |  | (27) |  |  | 69 |
Equity in earnings of unconsolidated entities | 45 |  |  | 37 |  |  | 40 |  |  | 36 |  |  | 158 |
Interest and dividend income | 1 |  |  | 3 |  |  | 2 |  |  | 3 |  |  | 8 |
Interest expense | (33) |  |  | (40) |  |  | (42) |  |  | (49) |  |  | (163) |
Income (loss) before income taxes | 84 |  |  | 40 |  |  | (15) |  |  | (37) |  |  | 72 |
Income tax expense (benefit) | 32 |  |  | 18 |  |  | (3) |  |  | (9) |  |  | 37 |
Net income (loss) | 52 |  |  | 22 |  |  | (12) |  |  | (28) |  |  | 35 |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 171 |  |  | 172 |  |  | 177 |  |  | 179 |  |  | 700 |
Loss on impairment of licenses | — |  |  | 3 |  |  | — |  |  | — |  |  | 3 |
(Gain) loss on asset disposals, net | 2 |  |  | 6 |  |  | 1 |  |  | 11 |  |  | 19 |
(Gain) loss on sale of business and other exit costs, net | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Interest expense | 33 |  |  | 40 |  |  | 42 |  |  | 49 |  |  | 163 |
Income tax expense (benefit) | 32 |  |  | 18 |  |  | (3) |  |  | (9) |  |  | 37 |
Adjusted EBITDA (Non-GAAP)2 | $ | 289 |  |  | $ | 261 |  |  | $ | 205 |  |  | $ | 202 |  |  | $ | 956 |

Wireless | Q1 2022 |  | Q2 2022 |  | Q3 2022 |  | Q4 2022 |  | Full Year 2022
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service | $ | 765 |  |  | $ | 760 |  |  | $ | 758 |  |  | $ | 750 |  |  | $ | 3,032 |
Equipment sales | 223 |  |  | 244 |  |  | 302 |  |  | 274 |  |  | 1,044 |
Total operating revenues | 988 |  |  | 1,004 |  |  | 1,060 |  |  | 1,024 |  |  | 4,076 |
System operations (excluding Depreciation, amortization and accretion reported below) | 200 |  |  | 205 |  |  | 209 |  |  | 194 |  |  | 807 |
Cost of equipment sold | 257 |  |  | 275 |  |  | 354 |  |  | 330 |  |  | 1,216 |
Selling, general and administrative | 318 |  |  | 331 |  |  | 361 |  |  | 366 |  |  | 1,376 |
Depreciation, amortization and accretion | 159 |  |  | 161 |  |  | 166 |  |  | 167 |  |  | 655 |
Loss on impairment of licenses | — |  |  | 3 |  |  | — |  |  | — |  |  | 3 |
(Gain) loss on asset disposals, net | 2 |  |  | 6 |  |  | 1 |  |  | 11 |  |  | 19 |
(Gain) loss on sale of business and other exit costs, net | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Operating income (loss) | 53 |  |  | 23 |  |  | (31) |  |  | (44) |  |  | 1 |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 159 |  |  | 161 |  |  | 166 |  |  | 167 |  |  | 655 |
Loss on impairment of licenses | — |  |  | 3 |  |  | — |  |  | — |  |  | 3 |
(Gain) loss on asset disposals, net | 2 |  |  | 6 |  |  | 1 |  |  | 11 |  |  | 19 |
(Gain) loss on sale of business and other exit costs, net | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Adjusted EBITDA (Non-GAAP)2 | $ | 213 |  |  | $ | 193 |  |  | $ | 136 |  |  | $ | 134 |  |  | $ | 677 |

Towers | Q1 2022 |  | Q2 2022 |  | Q3 2022 |  | Q4 2022 |  | Full Year 2022
(Dollars in millions) |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |
Service - Third-Party | $ | 22 |  |  | $ | 23 |  |  | $ | 23 |  |  | $ | 24 |  |  | $ | 93 |
Service - Intracompany | 31 |  |  | 31 |  |  | 31 |  |  | 31 |  |  | 123 |
Total operating revenues | 53 |  |  | 54 |  |  | 54 |  |  | 55 |  |  | 216 |
System operations (excluding Depreciation, amortization and accretion reported below) | 16 |  |  | 18 |  |  | 19 |  |  | 18 |  |  | 71 |
Selling, general and administrative | 7 |  |  | 8 |  |  | 8 |  |  | 8 |  |  | 32 |
Depreciation, amortization and accretion | 12 |  |  | 11 |  |  | 11 |  |  | 12 |  |  | 45 |
Operating income | 18 |  |  | 17 |  |  | 16 |  |  | 17 |  |  | 68 |
Add back: |  |  |  |  |  |  |  |  |
Depreciation, amortization and accretion | 12 |  |  | 11 |  |  | 11 |  |  | 12 |  |  | 45 |
Adjusted EBITDA (Non-GAAP)2 | $ | 30 |  |  | $ | 28 |  |  | $ | 27 |  |  | $ | 29 |  |  | $ | 113 |

Numbers may not foot due to rounding.
1 Consolidated amounts include elimination of intracompany charges for the use of company-owned towers by the Wireless segment.
2 Adjusted earnings before interest, taxes, depreciation, amortization and accretion (Adjusted EBITDA) is a segment measure reported to the chief operating decision maker for purposes of assessing the segments' performance. Adjusted EBITDA is defined as net income, adjusted for the items set forth in the reconciliation above. UScellular believes Adjusted EBITDA is a useful measure of UScellular’s operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of UScellular's 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.