Exhibit 99.1 |
Contact: | Mark A. Steinkrauss, Vice President, Corporate Relations (312) 592-5384 mark.steinkrauss@teldta.com Julie D. Mathews, Manager, Investor Relations (312) 592-5341 julie.mathews@teldta.com |
FOR RELEASE: IMMEDIATE |
U.S. CELLULAR PROVIDES SELECTED FOURTH QUARTER 2006 FINANCIAL |
CHICAGO - Feb. 23, 2007 - United States Cellular Corporation [AMEX:USM] today provided selected fourth quarter 2006 financial and operating data. |
Below is a summary of the preliminary operating data and unaudited results of certain key components of the statement of operations for the fourth quarter of 2006. There can be no assurance that final results will not differ materially from these preliminary results. |
Three months ended December 31 | |||
2005 Actual (as restated) | Range of Amounts Currently Anticipated to be Reported for 2006 | ||
Operating Revenues | $785 million | $890 to $910 million | |
Operating Income | $66 million | $55 to $75 million |
The following are selected summary operating data including certain preliminary fourth quarter 2006 data. |
U.S. Cellular Summary Operating Data |
Quarter Ended | 12/31/2006 | 9/30/2006 | 6/30/2006 | 3/31/2006 | 12/31/2005 | ||||||||||||
Consolidated Markets: | |||||||||||||||||
All customers - | |||||||||||||||||
Customer units | 5,815,000 | 5,729,000 | 5,704,000 | 5,633,000 | 5,482,000 | ||||||||||||
Gross customer unit activations | 389,000 | 365,000 | 347,000 | 434,000 | 419,000 | ||||||||||||
Net customer unit activations | 86,000 | 25,000 | 48,000 | 151,000 | 125,000 | ||||||||||||
Retail customers - | |||||||||||||||||
Customer units | 5,225,000 | 5,127,000 | 5,099,000 | 5,029,000 | 4,927,000 | ||||||||||||
Gross customer unit activations | 375,000 | 353,000 | 331,000 | 380,000 | 392,000 | ||||||||||||
Net customer unit activations | 98,000 | 28,000 | 49,000 | 122,000 | 130,000 | ||||||||||||
Cell sites in service | 5,947 | 5,726 | 5,583 | 5,438 | 5,428 | ||||||||||||
Minutes of use (MOU) (1) | 749 | 725 | 719 | 658 | 648 | ||||||||||||
Postpay churn rate per month (1) | 1.5 | % | 1.6 | % | 1.5 | % | 1.5 | % | 1.6 | % |
(1) | Average monthly local minutes of use per customer (without roaming). |
(2) | Postpay churn rate per month is calculated by dividing the average monthly postpay customer disconnects during the quarter by the average postpay customer base for the quarter. |
On Feb. 23, 2007, U.S. Cellular issued guidance for the year ending December 31, 2007. |
U.S. Cellular 2007 guidance as of Feb. 23, 2007 is as follows: | |||||
Net Retail Customer Additions | 350,000 - 400,000 | ||||
Service Revenues | Approx. $3.5 billion | ||||
Operating Income | $375 - $425 million | ||||
Depreciation, Amortization & Accretion | Approx. $615 million | ||||
Capital Expenditures | $600 - $615 million |
About U.S. Cellular As of Dec. 31, 2006, U.S. Cellular, the nation's sixth-largest wireless service carrier, employed 8,100 people and provided wireless service to 5.8 million customers in 26 states. The Chicago-based company operates on a customer satisfaction strategy, meeting customer needs by providing a comprehensive range of wireless products and services, superior customer support and a high-quality network. |
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 and projections, 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 the operations of the Chicago MTA and newly launched markets; changes in competition in the markets in which the company operates; changes in the overall economy; changes due to industry consolidation; advances in telecommunications technology; changes in the telecommunications regulatory environment; |
2 |
changes in the value of assets; changes in the value of investments, including variable prepaid forward contracts; an adverse change in the ratings afforded our debt securities by accredited ratings organizations; risks and uncertainties relating to restatements and possible future restatements; pending and future litigation; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming rates and the mix of products and services offered in the company's markets. 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. |
For more information about U.S. Cellular, visit the website at: |
USM:www.uscellular.com | |
3 |