Exhibit 99.1
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As previously announced, U.S. Cellular® will hold a teleconference on Nov. 5, 2008, at 10:00 a.m. Chicago time. Interested parties may listen to the call live via the Internet by accessing the Conference Calls page of www.teldta.com or www.uscc.com.
Contact: |
| Mark A. Steinkrauss, Vice President, Corporate Relations |
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| (312) 592-5384 mark.steinkrauss@teldta.com |
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| Julie D. Mathews, Manager, Investor Relations |
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| (312) 592-5341 julie.mathews@teldta.com |
FOR RELEASE: IMMEDIATE
U.S. CELLULAR REPORTS INCREASES IN SERVICE, DATA REVENUES
Service and data revenues up 6.2 percent and 35 percent in the quarter
Note: Comparisons are year over year unless otherwise noted.
3Q 2008 Highlights
· 6.2 percent increase in service revenues, to $1,013.9 million.
· 34.5 percent increase in data revenues, to $130.2 million, representing 12.8 percent of service revenues.
· 3.5 percent increase in ARPU (average monthly service revenue per unit), to $54.59.
· Retail postpay churn was unchanged at 1.6 percent; postpay customers comprised 94.8 percent of retail customers.
· 7.4 percent increase in cell sites in service, to 6,716.
· Repurchased 150,000 common shares for $8.6 million to offset dilution from employee benefit plans.
CHICAGO – Nov. 5, 2008 – United States Cellular Corporation [NYSE:USM] reported service revenues of $1,013.9 million for the third quarter of 2008, a 6.2 percent increase from $954.5 million in the comparable period one year ago. The company recorded operating income of $120.0 million, up from $100.9 million in the third quarter of 2007. Net income and diluted earnings per share were $89.9 million and $1.02, respectively, for the third quarter of 2008, compared to $63.6 million and $0.72, respectively, in the comparable period one year ago.
“We had solid performance this quarter, with increased revenues and a slight expansion in our margins,” said John E. Rooney, U.S. Cellular president and CEO. “We had a four percent increase in ARPU, which has risen year over year for the past 12 quarters, and that helped to drive service revenues. Customers continue to choose our smart phones and touchscreen phones, and that’s helping to drive the increase in ARPU as well.
“We added 12,000 retail postpay customers in the quarter, fewer than we expected,” continued Rooney, “which might be partly a result of the overall economic downturn. Foot traffic in our stores has slowed a bit, and we also had some losses in the prepaid customer segment, resulting in an overall net loss of customers. However, retail postpay customers are 95 percent of our retail customer base, and the fact that retail postpay churn was flat in the third quarter compared to this period last year tells us that those customers are staying put.
“Going forward, we plan to continue to introduce high-value, high-demand products and services,” added Rooney, “such as the Delve™ premium touchscreen phone from Samsung, which will be available in early November. And to support our rapidly growing base of customers opting for our BlackBerry® and Windows Mobile® smartphone solutions, we brought mobile broadband (EVDO Release A) to several major metro markets in late October and plan to continue the expansion in 2009. Customers continue to respond positively to U.S. Cellular services and features that put their needs first, like My Contacts Backup, Your NavigatorTM, free inbound calling on all of our current rate plans, the ability to change plans with no fee, Premium Data Plans, and U.S. Cellular’s Search & Info, a new easyedgeSM application that gives customers the ability to easily search for ring tones, wallpapers, games and applications.
“The wireless industry remains very competitive, and we’re keeping our high-value, postpay customers satisfied by maintaining the high level of customer service they expect and deserve from their wireless company. U.S. Cellular has a competitive lineup of handsets and services, a strong balance sheet, and—most importantly—associates who are dedicated to ensuring an exceptional experience for our customers.”
Gain on sale of investments
The acquisition of Rural Cellular Corporation (“RCC”) by Verizon Wireless was completed in August. The company received cash of $45 per share in exchange for each RCC share owned and recorded a $16.4 million gain.
Guidance
Guidance for the year ending Dec. 31, 2008 is as follows. There can be no assurance that final results will not differ materially from this guidance.
U.S. Cellular 2008 guidance as of Nov. 5, 2008 is as follows:
Net Retail Customer Additions |
| 125,000-160,000 |
Service Revenues |
| $3,925-$3,975 million |
Operating Income (1) |
| $385-$435 million |
Depreciation, Amortization & Accretion (1) (2) |
| Approx. $615 million |
Capital Expenditures (1) |
| $525-$575 million |
(1) Unchanged from guidance issued on August 7, 2008.
(2) Includes losses on exchange and disposals of assets.
The foregoing guidance represents the views of management as of Nov. 5, 2008 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.
2
Conference call information
U.S. Cellular will hold a conference call on Nov. 5, 2008 at 10:00 a.m. Chicago time.
· Access the live call online at http://www.videonewswire.com/event.asp?id=52912 or on the Conference Calls page of www.uscellular.com.
· Access the call by phone at 800/706-9695 (US/Canada) and use conference ID #71161042.
Before the call, certain financial and statistical information to be discussed during the call will be posted to the Conference Calls page of www.uscellular.com, together with reconciliations to generally accepted accounting principles (GAAP) of any non-GAAP information to be disclosed. The call will be archived on the Conference Calls page of www.uscellular.com.
About U.S. Cellular®
United States Cellular Corporation, the nation’s sixth-largest, full-service wireless carrier, provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to nearly 6.2 million customers in 26 states. The Chicago-based company employed 8,400 full-time equivalent associates as of Sept. 30, 2008. For more information about U.S. Cellular, visit www.uscellular.com.
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 the operations of more recently launched markets; the current credit crisis affecting financial markets, and it effects on the overall 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; risks and uncertainties relating to restatements and possible future restatements; ability to remediate the material weakness; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of devices and the mix of products and services offered by the company. 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.
3
UNITED STATES CELLULAR CORPORATION
SUMMARY OPERATING DATA
Quarter Ended |
| 9/30/2008 |
| 6/30/2008 |
| 3/31/2008 |
| 12/31/2007 |
| 9/30/2007 |
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Total Population: |
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Consolidated markets (1) |
| 82,875,000 |
| 82,875,000 |
| 82,846,000 |
| 82,371,000 |
| 81,841,000 |
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Consolidated operating markets (1) |
| 45,493,000 |
| 45,493,000 |
| 45,262,000 |
| 44,955,000 |
| 44,955,000 |
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All customers: |
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Customer units (2) |
| 6,176,000 |
| 6,194,000 |
| 6,175,000 |
| 6,102,000 |
| 6,058,000 |
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Gross customer unit additions |
| 367,000 |
| 365,000 |
| 409,000 |
| 436,000 |
| 447,000 |
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Net customer unit additions (losses) |
| (18,000 | ) | 16,000 |
| 74,000 |
| 44,000 |
| 48,000 |
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Market penetration at end of period: |
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Consolidated markets (3) |
| 7.5 | % | 7.5 | % | 7.5 | % | 7.4 | % | 7.4 | % | |||||
Consolidated operating markets (3) |
| 13.6 | % | 13.6 | % | 13.6 | % | 13.6 | % | 13.5 | % | |||||
Retail customers: |
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Customer units (2) |
| 5,674,000 |
| 5,677,000 |
| 5,640,000 |
| 5,564,000 |
| 5,500,000 |
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Gross customer unit additions |
| 325,000 |
| 318,000 |
| 360,000 |
| 367,000 |
| 374,000 |
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Net postpay customer unit additions |
| 12,000 |
| 33,000 |
| 71,000 |
| 70,000 |
| 73,000 |
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Net prepay customer unit additions (losses) |
| (15,000 | ) | 1,000 |
| 14,000 |
| (6,000 | ) | (21,000 | ) | |||||
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Cell sites in service |
| 6,716 |
| 6,596 |
| 6,452 |
| 6,383 |
| 6,255 |
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Average monthly revenue per unit (4) |
| $ | 54.59 |
| $ | 53.27 |
| $ | 52.24 |
| $ | 52.57 |
| $ | 52.73 |
|
Retail service revenue per unit (4) |
| $ | 46.04 |
| $ | 45.62 |
| $ | 45.30 |
| $ | 45.45 |
| $ | 45.02 |
|
Inbound roaming revenue per unit (4) |
| $ | 3.73 |
| $ | 3.40 |
| $ | 2.94 |
| $ | 3.09 |
| $ | 3.36 |
|
Long-distance/other revenue per unit (4) |
| $ | 4.82 |
| $ | 4.25 |
| $ | 4.00 |
| $ | 4.03 |
| $ | 4.35 |
|
Minutes of use (MOU) - Voice (5) |
| 695 |
| 704 |
| 701 |
| 689 |
| 680 |
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Retail postpay churn rate per month (6) |
| 1.6 | % | 1.4 | % | 1.4 | % | 1.5 | % | 1.6 | % | |||||
Construction Expenditures (000s) |
| $ | 146,100 |
| $ | 137,800 |
| $ | 111,700 |
| $ | 188,100 |
| $ | 130,600 |
|
(1) “Total population of consolidated markets” and “Total population of consolidated operating markets” are used only for the purposes of calculating 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) All customer units as of September 30, 2007, December 31, 2007 and March 31, 2008, and retail customer units as of March 31, 2008 have been adjusted from amounts previously reported, as a result of a review of U.S. Cellular’s customer reporting procedures.
(3) 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.
(4) Per unit revenue measurements are derived from Service Revenues as reported in Financial Highlights for each respective quarter as follows:
Service Revenues (000s) |
| $ | 1,013,928 |
| $ | 987,352 |
| $ | 962,094 |
| $ | 957,896 |
| $ | 954,540 |
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Components: |
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Retail service revenue (000s) |
| 855,167 |
| 845,564 |
| 834,213 |
| 828,169 |
| 814,948 |
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Inbound roaming revenue (000s) |
| 69,319 |
| 63,033 |
| 54,089 |
| 56,358 |
| 60,843 |
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Long-distance/other revenue (000s) |
| 89,442 |
| 78,755 |
| 73,792 |
| 73,369 |
| 78,749 |
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Divided by average customers (000s) |
| 6,191 |
| 6,178 |
| 6,139 |
| 6,074 |
| 6,034 |
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Divided by three months in each quarter |
| 3 |
| 3 |
| 3 |
| 3 |
| 3 |
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Average monthly revenue per unit |
| $ | 54.59 |
| $ | 53.27 |
| $ | 52.24 |
| $ | 52.57 |
| $ | 52.73 |
|
Retail service revenue per unit |
| $ | 46.04 |
| $ | 45.62 |
| $ | 45.30 |
| $ | 45.45 |
| $ | 45.02 |
|
Inbound roaming revenue per unit |
| $ | 3.73 |
| $ | 3.40 |
| $ | 2.94 |
| $ | 3.09 |
| $ | 3.36 |
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Long-distance/other revenue per unit |
| $ | 4.82 |
| $ | 4.25 |
| $ | 4.00 |
| $ | 4.03 |
| $ | 4.35 |
|
(5) Average monthly local voice minutes of use per customer (without roaming).
(6) Retail postpay churn rate per month is calculated by dividing the total monthly retail postpay customer disconnects during the quarter by the average retail postpay customer base for the quarter.
4
UNITED STATES CELLULAR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS HIGHLIGHTS
Three Months Ended September 30,
(Unaudited, dollars and shares in thousands, except per share amounts)
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| Increase (Decrease) |
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| 2008 |
| 2007 |
| Amount |
| Percent |
| |||
Operating Revenues |
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Service |
| $ | 1,013,928 |
| $ | 954,540 |
| $ | 59,388 |
| 6.2 | % |
Equipment sales |
| 77,947 |
| 61,294 |
| 16,653 |
| 27.2 | % | |||
Total Operating Revenues |
| 1,091,875 |
| 1,015,834 |
| 76,041 |
| 7.5 | % | |||
Operating Expenses |
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System operations (excluding Depreciation, amortization |
| 197,473 |
| 185,479 |
| 11,994 |
| 6.5 | % | |||
Cost of equipment sold |
| 180,584 |
| 161,428 |
| 19,156 |
| 11.9 | % | |||
Selling, general and administrative |
| 441,543 |
| 418,212 |
| 23,331 |
| 5.6 | % | |||
Depreciation, amortization and accretion |
| 145,434 |
| 148,014 |
| (2,580 | ) | (1.7 | )% | |||
Loss on asset disposals, net |
| 6,884 |
| 1,762 |
| 5,122 |
| N/M |
| |||
Total Operating Expenses |
| 971,918 |
| 914,895 |
| 57,023 |
| 6.2 | % | |||
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Operating Income |
| 119,957 |
| 100,939 |
| 19,018 |
| 18.8 | % | |||
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Investment and Other Income (Expense) |
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Equity in earnings of unconsolidated entities |
| 22,319 |
| 23,782 |
| (1,463 | ) | (6.2 | )% | |||
Interest and dividend income |
| 1,137 |
| 3,395 |
| (2,258 | ) | (66.5 | )% | |||
Gain on disposition of investments |
| 16,628 |
| — |
| 16,628 |
| N/M |
| |||
Interest expense |
| (19,722 | ) | (19,625 | ) | (97 | ) | (0.5 | )% | |||
Other, net |
| 391 |
| 179 |
| 212 |
| N/M |
| |||
Total Investment and Other Income (Expense) |
| 20,753 |
| 7,731 |
| 13,022 |
| N/M |
| |||
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Income Before Income Taxes and Minority Interest |
| 140,710 |
| 108,670 |
| 32,040 |
| 29.5 | % | |||
Income tax expense |
| 45,506 |
| 41,154 |
| 4,352 |
| 10.6 | % | |||
Income Before Minority Interest |
| 95,204 |
| 67,516 |
| 27,688 |
| 41.0 | % | |||
Minority share of income, net of tax |
| (5,255 | ) | (3,961 | ) | (1,294 | ) | (32.7 | )% | |||
Net Income |
| $ | 89,949 |
| $ | 63,555 |
| $ | 26,394 |
| 41.5 | % |
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Basic Weighted Average Common Shares Outstanding |
| 87,460 |
| 87,757 |
| (297 | ) | (0.3 | )% | |||
Basic Earnings Per Share |
| $ | 1.03 |
| $ | 0.72 |
| $ | 0.31 |
| 43.1 | % |
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Diluted Weighted Average Common Shares Outstanding |
| 87,833 |
| 88,589 |
| (756 | ) | (0.9 | )% | |||
Diluted Earnings Per Share |
| $ | 1.02 |
| $ | 0.72 |
| $ | 0.30 |
| 41.7 | % |
N/M - Percentage change not meaningful
5
UNITED STATES CELLULAR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS HIGHLIGHTS
Nine Months Ended September 30,
(Unaudited, dollars and shares in thousands, except per share amounts)
|
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| Increase (Decrease) |
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| 2008 |
| 2007 |
| Amount |
| Percent |
| |||
Operating Revenues |
|
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Service |
| $ | 2,963,374 |
| $ | 2,721,341 |
| $ | 242,033 |
| 8.9 | % |
Equipment sales |
| 226,949 |
| 200,813 |
| 26,136 |
| 13.0 | % | |||
Total Operating Revenues |
| 3,190,323 |
| 2,922,154 |
| 268,169 |
| 9.2 | % | |||
Operating Expenses |
|
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|
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System operations (excluding Depreciation, amortization and accretion reported below) |
| 585,141 |
| 529,172 |
| 55,969 |
| 10.6 | % | |||
Cost of equipment sold |
| 526,815 |
| 460,413 |
| 66,402 |
| 14.4 | % | |||
Selling, general and administrative |
| 1,271,544 |
| 1,151,746 |
| 119,798 |
| 10.4 | % | |||
Depreciation, amortization and accretion |
| 433,222 |
| 439,990 |
| (6,768 | ) | (1.5 | )% | |||
Loss on asset disposals, net |
| 16,776 |
| 7,899 |
| 8,877 |
| N/M |
| |||
Total Operating Expenses |
| 2,833,498 |
| 2,589,220 |
| 244,278 |
| 9.4 | % | |||
|
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| |||
Operating Income |
| 356,825 |
| 332,934 |
| 23,891 |
| 7.2 | % | |||
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Investment and Other Income (Expense) |
|
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| |||
Equity in earnings of unconsolidated entities |
| 66,361 |
| 69,860 |
| (3,499 | ) | (5.0 | )% | |||
Interest and dividend income |
| 4,471 |
| 8,598 |
| (4,127 | ) | (48.0 | )% | |||
Fair value adjustment of derivative instruments |
| — |
| (5,388 | ) | 5,388 |
| N/M |
| |||
Gain on disposition of investments |
| 16,628 |
| 131,686 |
| (115,058 | ) | (87.4 | )% | |||
Interest expense |
| (60,611 | ) | (64,634 | ) | 4,023 |
| 6.2 | % | |||
Other, net |
| 1,109 |
| (315 | ) | 1,424 |
| N/M |
| |||
Total Investment and Other Income (Expense) |
| 27,958 |
| 139,807 |
| (111,849 | ) | (80.0 | )% | |||
|
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|
|
|
|
|
|
| |||
Income Before Income Taxes and Minority Interest |
| 384,783 |
| 472,741 |
| (87,958 | ) | (18.6 | )% | |||
Income tax expense |
| 137,062 |
| 176,542 |
| (39,480 | ) | (22.4 | )% | |||
Income Before Minority Interest |
| 247,721 |
| 296,199 |
| (48,478 | ) | (16.4 | )% | |||
Minority share of income, net of tax |
| (14,613 | ) | (10,672 | ) | (3,941 | ) | (36.9 | )% | |||
Net Income |
| $ | 233,108 |
| $ | 285,527 |
| $ | (52,419 | ) | (18.4 | )% |
|
|
|
|
|
|
|
|
|
| |||
Basic Weighted Average Common Shares Outstanding |
| 87,534 |
| 87,743 |
| (209 | ) | (0.2 | )% | |||
Basic Earnings Per Share |
| $ | 2.66 |
| $ | 3.25 |
| $ | (0.59 | ) | (18.2 | )% |
|
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|
|
|
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|
| |||
Diluted Weighted Average Common Shares Outstanding |
| 87,908 |
| 88,680 |
| (772 | ) | (0.9 | )% | |||
Diluted Earnings Per Share |
| $ | 2.65 |
| $ | 3.22 |
| $ | (0.57 | ) | (17.7 | )% |
N/M - Percentage change not meaningful
6
UNITED STATES CELLULAR CORPORATION
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)
ASSETS
|
| September 30, |
| December 31, |
| ||
|
| 2008 |
| 2007 |
| ||
Current Assets |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 177,608 |
| $ | 204,533 |
|
Marketable equity securities |
| — |
| 16,352 |
| ||
Accounts receivable from customers and other |
| 443,534 |
| 435,497 |
| ||
Inventory |
| 112,553 |
| 100,990 |
| ||
Prepaid expenses |
| 59,565 |
| 41,588 |
| ||
Other current assets |
| 35,082 |
| 34,793 |
| ||
|
| 828,342 |
| 833,753 |
| ||
|
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| ||
Investments |
|
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|
| ||
Licenses |
| 1,794,843 |
| 1,482,446 |
| ||
Goodwill |
| 493,918 |
| 491,316 |
| ||
Customer lists |
| 10,544 |
| 15,375 |
| ||
Investments in unconsolidated entities |
| 175,424 |
| 157,693 |
| ||
Notes and interest receivable—long-term |
| 4,328 |
| 4,422 |
| ||
|
| 2,479,057 |
| 2,151,252 |
| ||
|
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|
| ||
Property, Plant and Equipment |
|
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|
|
| ||
In service and under construction |
| 5,754,793 |
| 5,409,115 |
| ||
Less accumulated depreciation |
| 3,179,513 |
| 2,814,019 |
| ||
|
| 2,575,280 |
| 2,595,096 |
| ||
|
|
|
|
|
| ||
Other Assets and Deferred Charges |
| 31,290 |
| 31,773 |
| ||
|
|
|
|
|
| ||
Total Assets |
| $ | 5,913,969 |
| $ | 5,611,874 |
|
7
UNITED STATES CELLULAR CORPORATION
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| September 30, |
| December 31, |
| ||
|
| 2008 |
| 2007 |
| ||
Current Liabilities |
|
|
|
|
| ||
Accounts payable |
|
|
|
|
| ||
Affiliated |
| $ | 8,653 |
| $ | 8,519 |
|
Trade |
| 264,740 |
| 252,272 |
| ||
Customer deposits and deferred revenues |
| 152,988 |
| 143,445 |
| ||
Accrued taxes |
| 35,874 |
| 43,105 |
| ||
Accrued compensation |
| 52,296 |
| 59,224 |
| ||
Other current liabilities |
| 100,025 |
| 97,678 |
| ||
|
| 614,576 |
| 604,243 |
| ||
|
|
|
|
|
| ||
Long-Term Debt |
| 1,006,431 |
| 1,002,293 |
| ||
|
|
|
|
|
| ||
Deferred Liabilities and Credits |
| 832,512 |
| 765,786 |
| ||
|
|
|
|
|
| ||
Minority Interest |
| 51,684 |
| 43,396 |
| ||
|
|
|
|
|
| ||
Common Shareholders’ Equity |
|
|
|
|
| ||
Common Shares, par value $1 per share |
| 55,046 |
| 55,046 |
| ||
Series A Common Shares, par value $1 per share |
| 33,006 |
| 33,006 |
| ||
Additional paid-in capital |
| 1,335,241 |
| 1,316,042 |
| ||
Treasury Shares |
| (50,361 | ) | (41,094 | ) | ||
Accumulated other comprehensive income |
| — |
| 10,134 |
| ||
Retained earnings |
| 2,035,834 |
| 1,823,022 |
| ||
|
| 3,408,766 |
| 3,196,156 |
| ||
|
|
|
|
|
| ||
Total Liabilities and Shareholders’ Equity |
| $ | 5,913,969 |
| $ | 5,611,874 |
|
8
UNITED STATES CELLULAR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30,
(Unaudited, dollars in thousands)
|
| 2008 |
| 2007 |
| ||
Cash Flows from Operating Activities |
|
|
|
|
| ||
Net income |
| $ | 233,108 |
| $ | 285,527 |
|
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities: |
|
|
|
|
| ||
Depreciation, amortization and accretion |
| 433,222 |
| 439,990 |
| ||
Bad debts expense |
| 52,753 |
| 46,539 |
| ||
Stock-based compensation expense |
| 11,293 |
| 11,383 |
| ||
Deferred income taxes, net |
| 44,486 |
| (10,756 | ) | ||
Equity in earnings of unconsolidated entities |
| (66,361 | ) | (69,860 | ) | ||
Distributions from unconsolidated entities |
| 50,859 |
| 47,595 |
| ||
Minority share of income |
| 14,613 |
| 10,672 |
| ||
Unrealized fair value adjustment of derivative instruments |
| — |
| 5,388 |
| ||
Gain on disposition of investments |
| (16,628 | ) | (131,686 | ) | ||
Loss on asset disposals, net |
| 16,776 |
| 7,899 |
| ||
Other noncash expense |
| 1,539 |
| 1,333 |
| ||
Excess tax benefit from stock awards |
| (1,018 | ) | (11,374 | ) | ||
Other operating activities |
| — |
| (5,000 | ) | ||
Changes in assets and liabilities from operations: |
|
|
|
|
| ||
Change in accounts receivable |
| (71,551 | ) | (72,684 | ) | ||
Change in inventory |
| (11,552 | ) | 4,224 |
| ||
Change in accounts payable - trade |
| 11,383 |
| 2,873 |
| ||
Change in accounts payable - affiliate |
| 134 |
| (4,393 | ) | ||
Change in customer deposits and deferred revenues |
| 9,534 |
| 20,413 |
| ||
Change in accrued taxes |
| (1,724 | ) | 39,302 |
| ||
Change in accrued interest |
| 9,787 |
| 8,595 |
| ||
Change in other assets and liabilities |
| (24,073 | ) | (4,267 | ) | ||
|
| 696,580 |
| 621,713 |
| ||
Cash Flows from Investing Activities |
|
|
|
|
| ||
Additions to property, plant and equipment |
| (395,637 | ) | (377,399 | ) | ||
Proceeds from disposition of investments |
| 16,690 |
| 4,301 |
| ||
Cash received from divestitures |
| 6,838 |
| 4,277 |
| ||
Cash paid for acquisitions and licenses |
| (314,730 | ) | (18,283 | ) | ||
Other investing activities |
| (1,255 | ) | (1,346 | ) | ||
|
| (688,094 | ) | (388,450 | ) | ||
Cash Flows from Financing Activities |
|
|
|
|
| ||
Issuance of notes payable |
| 100,000 |
| 25,000 |
| ||
Repayment of notes payable |
| (100,000 | ) | (60,000 | ) | ||
Common shares reissued, net of tax payments |
| (1,286 | ) | 12,181 |
| ||
Common shares repurchased |
| (23,146 | ) | (65,202 | ) | ||
Excess tax benefit from exercise of stock awards |
| 1,018 |
| 11,374 |
| ||
Capital distributions to minority partners |
| (9,146 | ) | (7,508 | ) | ||
Other financing activities |
| (2,851 | ) | — |
| ||
|
| (35,411 | ) | (84,155 | ) | ||
|
|
|
|
|
| ||
Net Increase (Decrease) in Cash and Cash Equivalents |
| (26,925 | ) | 149,108 |
| ||
Cash and Cash Equivalents |
|
|
|
|
| ||
Beginning of period |
| 204,533 |
| 32,912 |
| ||
End of period |
| $ | 177,608 |
| $ | 182,020 |
|
9