USM - Earnings call transcript Q4 2024 | United States Cellular Corporat

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the TDS and UScellular Fourth Quarter 2024 Operating Results Conference Call. [Operator Instructions]

I would now like to turn the conference over to Colleen Thompson, Vice President, Corporate Relations. ahead. go Please

Colleen Thompson

can thank me Therivel, make and have Walter President joining We are and which us. to sections Villacrez, Investor and Good the Vice Telecom; Chief Chief From President Carlson, from Officer; President and of Officer. of President all you Executive offering Financial Officer. President, aware to and Bousfield, TDS and Vicki Chris you morning, Doug TDS, UScellular, this you Treasurer; our websites. Officer; Chief Chief we LT on and of Executive want Vice TDS the accompany Relations Chambers, With morning, UScellular Financial Executive Chief comments for and find Vice today the Finance prepared comments and presentation Executive from Officer Financial prepared

on TDS simultaneously XX-Ks slides websites and is including reconciliations. non-GAAP earlier on webcast Investor call releases to their filed this the the referred the This see press website. our for Forms and SEC Relations and Cellular TDS X-K, U.S. including Please call, morning. being UScellular this

contains shown and about and X, on set call information in expected presentation call subject SEC As Please the And and the are this that, during future the Vicki the filings. events to forward-looking our extended with paragraphs turn that safe included financial in harbor version discussed our risks will Villacrez. uncertainties. results forth and Slide in review statements to over the press releases Vicki? and I now

Vicki Villacrez

with organization, very significant last XXXX a everyone. year we'll year priorities and a at goals. quick pleased accomplishments. back Colleen, for you you, Okay. XXXX and take hello, morning, our I'm the our Thank and with and also share was look This

success, alternatives UScellular, ILEC the grow TDS announcements the to we and cable along review long-term of sale of evidenced at look First, our win focus Solutions, to where at and and strategic for multiple companies related copper we optimize to small can on OneNeck IT portfolio the as company to position by Telecom. with several

financial will with UScellular you in businesses businesses Also experience discipline programs, on mid-band free an X TDS full as investments contributing As X% adjusted their full maintained XXXX enhance the deployment capital a customer today, over hear being of both expanded up have to year significant the consolidated a in expenditures consolidated XX% competitive made Telecom, XG past margins investments positions fiber the These for in the program increased at the to reros the footprint our we increase XXXX, made their cost were for and and EBITDA where XXXX. year and our in years. with flow down level, at were in reduction XX% nearly on basis. improve cash both resulting

have Walter, shareholders, who want now Board you and the at leverage We drove further second to TDS free to million morning. over our TDS $XXX the companies. Xx this value CEO. introduce in the in Carlson, I'm year significant of paid us a bank debt. improvements our with consistently position it's future. recently strengthened and year-over-year year pleasure us below also We unlocking join our balance sheet we've for Chair, for I half progress were both flow down and positive at cash ratios President named the Walter UScellular, the in made pleased We was operating which to ended

Walter C.D. Carlson

our Ted am I on I'm and good share honored pleased with call to I this this be the be today. Vicki, morning. priorities to role. important it you to and earlier to with joined in for succeed was month, this XXXX. you you, TDS thought team I Thank management

as year, position focused very can this is on enterprise future. you the X. them to bright critical, team for We entire on have is these Slide see and priorities objectives a our Accomplishing important

Our first close priority to is the T-Mobile transaction.

will this the is LT company's hear step in . the much this, on transaction transformation. first You but more closing from

T-Mobile the following will we on spectrum other closing the transaction, And of the focus announced closing transactions.

is sure UScellular Our the at assets second successful. remaining are priority to make highly

among Foremost business. strengthen owned these UScellular's to towers, solidify and to expect we steps and that are further take

for Third, remain to strategy. telecom our fiber business we its focused on intend

pursue Chris, opportunities. As fiber we projected hear at spend have to from increased will you our highly capital telecom desirable

And striking reinvestment between to serving in priority while TDS T-Mobile other fourth the to use its optimize shareholders. shareholder wisely the capital right from up to transactions and communities is customers, and free and proceeds will culture prioritize balance the we Our from businesses least, company's structure the capital to and TDS. far dedicated associates, is returns. core finally, but last, of the

so will to We and continue do XXXX going in forward.

forward. the assets, optimizing capital the on going focused the the right structure right are position We enterprise talent to best and right

time our units. business from Now hear it's LT. to

Laurent Therivel

everyone. Good morning, Walter. you, Thank

the a spectrum to the the anticipate announced various return the a reflect I we strong that improve forward. year the when second and that wireless we entered certainly on that the the XXXX, And position we unlocks in value and significant able we series to UScellular. proceeds. shareholders. momentous also quarter our The deliver We T-Mobile in we of to capital results review We transactions business that moving sell quarter, while as transactions of business. stakeholders As financials for strategic agreement executed in being substantial remains in a at were puts a fourth combined mentioned announced subscriber strong we drive position should deal, to to with into a established business

to an and customers. further provide licenses carriers, to around appraised reflect licenses that in with spectrum their Directors sales excess experience course. by will will they that significant carriers made of Board of due decisions The the to has be their in transactions improved other turn value any respective which that those bandwidth value value the book Naturally, are demonstrates the prices and both in allow provide

close With the to respond regard progressing we're X the ongoing their transaction. transaction importantly, track and deal the T-Mobile requests. expected. our And of mid-XXXX are contingent transactions, to believe T-Mobile for as the interactions of Spectrum having all factors. a regulators transaction quarter as other on important is we as upon large We're we X fourth for that still that as spectrum in number close to are And the the announced a well with this

the As remaining touch look that the like a the UScellular quick transactions. on I announced close want what reminder, after business will of to

new keep drive remain with business densification T-Mobile which XX adding T-Mobile, Today, One on put we sight the to as capacity on that industry X,XXX towers, the our another will we have choose locate at other long-term that XXXX to place transaction we'll tower for with owned mind And long-term will of and thing X,XXX demand likely incremental not the of we additional likely that about let's co-locators. towers for after in require line least closes. on the months towers. is to clear the on further start until be business. in tower towers bullish have will business. outlook with a with up strengthens our the We And colocations further MLA

with know to no sell many have them decommission Therefore, we these time towers, exactly transfer we before them towers third it them, what them, with on will naked take or co-locators to we how parties. some retain do choose

also interest produce our partnerships Now attractive various be in and cash equity remaining will method investment flows. those

vast represents were that have $XXX unconsolidated XX% these attributes about For our portfolio existing portfolio is from majority entities We context, our of distributions And lastly, there spectrum. are cash remaining attractive. million today, spectrum believe C-band spectrum which licenses we'll C-band of the our in of XXXX. the of

apply are able use. XG, ecosystem, And build-out to put XXXX. so and this existing these to until band, licenses there requirements carriers the [indiscernible] associated spectrum although easily to that an mid-band X for first with are infrastructure there's spectrum doesn't

plenty for of to us opportunistically time monetize there's the spectrum. So

Turning to results. XXXX our

retail financially operating delivered our our We Given which, may guidance fixed executed We trajectory set the of environment, to growth the industry deployment year customers. remaining XXX,XXX while at very our year, of plan the progress made disciplined. you and a this nice beginning have results. seen surpassed earlier -- had includes in meaningful and in results. advance subscriber financial year-over-year on week, on and we wireless. improve mid-band subscriber UScellular as that solid the we That

pleased with Doug results XXXX. in postpaid especially handset is going year-over-year that in I'm improvements on half the second minutes. the in of touch a few to the

the for of were with negative. overall. scale best improvements, still subscriber challenges the the with T-Mobile competitive business for And customers lack that's our However, path the why the of size despite we environment forward And the still feel remain. and of coupled adds and our net transaction is those retail business

by For increased year, that's the customers, XX% which down, year-over-year. rose cash all were usage full and despite categories expense data

cover sites, of As of year-end, which our data close to traffic. rolled to we've out mid-band XX%

Now priorities both forward and days our to strategies. to that our changing. retention looking We'll XXXX, customers, continue of through [indiscernible] not in the are includes acquisition invest continuation operational activities

As where promotional made a reminder, us offers to existing attractive our are days periods are highly available customers.

to on that rollout first And month, customers' finally, customers, across North We'll also in experience. that Last and continue capacity of region, And footprint, matters Built healthy according U.S. our the ranked spectrum a quality our technology. for in network J.D. out Power brand wireless XXXX subject that we'll expanding performance rolling speed us responsible our and Central to enhancing focuses to and invest overall XG is use mid-band UScellular working. study. continue

and free result year. that $XXX over by down debt. significant we Financially, actions sheet increased an flow. paying strategic our is both the during the We million throughout given balance strengthened affected XXXX, were profitability in cash excellent This

to will to our close and and on our you a diligently customers pending focus be want their on business, I for and of to investing while to our Our associates, laser-focused our in year unrelenting thank operating our associates. remaining And work business. team speaking focus customers transactions huge our this provide those

through Doug Now over the bit let talk detail. in little me to more results a turn it to

Douglas Chambers

Good Thanks, LT. morning.

X. by primarily voluntary basis handset postpaid on and a XX% Turning note. postpaid churn. increased We to decrease subscriber in high Postpaid decreased XXXX additions on points, year-over-year by XX gross handset results Slide ended churn a driven

promotions investing net that in network both efforts postpaid and existing offering handset are we caring handset customers negative, are in compelling believe still the drive to adds improvements postpaid to are and customers, results. our we Although for helping all new our in making

starting financial consolidated results on Slide to XX. Moving

we which cost XXXX, drove by For subscriber equipment fourth revenues of service driven in less million primarily and favorable in fourth declined retail average the offers quarter, retention promotional quarter retail driven increased the results. attractive maintain acquisition as year-over-year quarter by primarily expenses fourth on subscriber throughout sales equipment the sold of the Loss X% equipment for declines $XX increased base.

depreciation which As before result, XX% incorporates and declined earnings from XX%. with along the and income adjusted our a adjusted operating investments, income EBITDA, amortization and dividend interest method declined equity

a decline increased average For adjusted adjusted in million the million, year, driven EBITDA by $XX were decreases in despite service OIBDA revenues full respectively. both $XX retail and and X% subscribers, X%,

from improvement cost shutdown impact in This the the of our of the impacts resulted optimization XXXX profitability initiatives. quarter and CDMA our the of first favorable of network

completed enhance As largely XG XXXX XXXX, to to of we our a substantial it mid-band relates and and in XXXX, deployment build expenditures of network capital capital and dedicated deployment, XG-related through coverage in the capacity. XG majority expenditures and speed our our

relative total dedicated distributions progress capital was flow we to expect decrease XXXX, and into over improvement, in increase to cycle. XG XXXX continue expenditures equity capital to in levels cash to be the deployment, as profitability our an $XXX investments method expect we our further expenditures Free in XG deployment to investments. million, In we from million a decline our increase to and $XX attributable an XXXX primarily XXXX, mid-band

select is pending to other and this T-Mobile is the of to and approvals subject therefore, and not sale wireless mentioned, regulatory As operations transaction of close related closing a our certainty. conditions, transaction to spectrum

we are such and However, guidance the and as conditions in LT mentioned, meet time. complete that with such mid-XXXX not T-Mobile approvals XXXX. transaction issuing at regulatory sale financial to closing UScellular for Accordingly, for we obtain still expect

provide and proceeds cash XX on perspective XX such and factors which Slides may from the pending expected impact transactions proceeds.

Transfers T-Mobile purchase. owned are partners to price we interest and billion. contingent the by course, this the to of of to spectrum our X $X.X and Also, of upon agreed whose receipt pending transfers approval and targets interests are price underlying million purchase prior such operating UScellular close. certain financial million purchase achieving contingent approval. is these the have related of of Of the $XX licenses the regulatory price regulatory to of stated is transaction is upon $XXX

pursuant Cellular for debt a XXXX, to reduce transaction principal offer which UScellular of Upon senior total amount debt. correspondingly exchange close, will of of at T-Mobile balance with T-Mobile billion their holders elect a will offered will holders December exchange transaction notes $X.XXX XX, unsecured US to to to respective be conduct The debt exchange proceeds. debt

repay In principal to At that financing and this addition, UScellular credit its cumulative amount million. expected agreement $XXX was of of receivable agreement credit. export XXXX, debt upon the line XX, revolving term is loans, securitization requires close repayment December

As relates following the expects obligations. employee to it liabilities, UScellular cash

to to [indiscernible]. UScellular of number offers make significant First, T-Mobile employees a has upon agreed

date. obligated close, and these that wages, other upon For employees to prior that the these earned close T-Mobile bonuses UScellular benefits by were is pay accrued hired employees are ultimately to

employed nor in the contingent include cash closing are accrued The Spectrum the and benefits may vesting the obligations the regulatory certain in incur related bonus settle have are to expects $XXX tax to obligations of severance, include other stock-based gain cash with close income and either business. by Verizon of the million. T-Mobile select conditions. million expects cash U.S. to the to UScellular $XXX remaining for spectrum of These of Cellular transactions range to and T-Mobile, T-Mobile transaction awards. also other on are sale obligations to employees business wireless the sale approval and obligations upon by the accelerated that AT&T to UScellular retained obligations expected Second, and severance of

million subject with transactions has transaction AT&T deal UScellular's contingency noted regulatory previously, a the expects million million. on is with in to $XXX similar gain UScellular in these sale X income as this AT&T ownership related and the pending of with spectrum which, its of Cellular's $XXX of interest, Further, in designated to to of tax Verizon entities U.S. to of incur spectrum spectrum cash The the to purchase related range approval. $XXX partners' obligations

expects in respective additional through and UScellular the and XXXX investment fees close spectrum incur to at Lastly, advisory transactions. legal banking and and XXXX dates of T-Mobile the

which incur to naked of transactions. periods the by the as expects for capital is In in structure also the addition, the after U.S. to decommissioning T-Mobile UScellular Cellular after still certain UScellular discussed is cash UScellular related targeted the available transaction, LTE, towers. evaluating costs respective expected impact close of to business, remaining at close

various turn of significant the to that will net Again, and impact the expected call contingencies. Chris factors pending this now Chris? summary is from a are over proceeds dependencies transactions, the [indiscernible]. to along I with

Unknown Executive

Thank you, Slide TDS to here happy XXXX Telecom's Doug. be Good shown share morning, on today everyone. to XX. accomplishments I'm

growing that by advanced to have in more that significant our We significantly and of surpassing initiatives now few plan XXX,XXX. on fiber, strategy, increase see progress we in past a of and the made goal slides. service than by as served year, number our fiber addresses support executing number of long-term XXXX, our our Over XX% we've of goals. We've a the vision addresses number fiber XXX,XXX you'll

we our XXXX spent for with planning will program [indiscernible] strategy reduce copper This connections in The in by X% speeds Our is growth, increase XXXX, broadband and our growth lastly, is with starting connections management driven in technology. broadband line our enhanced on markets. and a continued increased as growth top both which multiyear fiber bring working. we This was customers revenue adjusted and XX% residential connection. EBITDA In And cost reliance faster by per coupled saw fiber to in investments we a XXXX. year-over-year. drove broadband average engineering revenues further in construction

new marketing we the ramping improve as sales addresses, focused number were the on sales deliver XXXX, to service fiber drive in Throughout XX. and made increased Slide penetration of We has helped which progress to reps addresses. teams net to door-to-door those up launched increasing Turning newly adds.

residential net broadband was quarter fourth year, of the adding the X,XXX adds. Our strongest quarter

higher Slide we broadband we XXX residential X% of for are take total on right the side of with taking Shown the we On at and added gig the gig XX% service Demand customers or can end at new grew the higher of of When quarter. quarter, X XX, speeds strong. or in or X you that XX% XX% broadband faster for took higher. the looking addresses meg speeds taking higher slide, seeing speeds customers increased year-over-year. see rates remains

Our broadband are producing investments positive results.

As due year-over-year increases. average shown price to on XX, revenue connection X% was up per Slide residential primarily

the year. last on residential grew million the right, $XXX with Looking we to revenue X% compared markets at chart expansion generating million $XX year-over-year

X% Total growth Slide year, partially in have by touch quarter and video X% decreasing the and discussed. residential highlights. X% the operating a full by while price previously year. for voice to and increased In increased penetration and the connections, improve driven last in invest full over in sales On as in financial we connections, declines the and commercial revenues quarter, I'll XX, revenue decline accelerated quarter, on increases offset fourth in marketing for X% more started which year. Cash expenses to broadband fourth the the in rates, the broadband

As in the full compared growth the a fourth year. adjusted result, EBITDA quarter moderated to

we which $XXX focused contributed year expenditures very improvement cost disciplined capital adjusted broadband Full spending full as penetration commensurate and of with remain million capacity. financial our to of XX%. focus down year were EBITDA pace on the planned. We as our driving on management,

updated and our to programs. long-term goals you our very share expansion XX. CAM reflect ongoing We've fiber new I'm goals. our with EA Turning Slide to pleased to fiber

the higher bringing the with receive a years of in revenue our regulatory reminder, of million program, in approximately rural geographies annual As speeds XX $XX to will for we most footprint. EA-CAM some exchange for

the bringing along EA-CAM addresses, plans by engineering approximately including passed those road. the and estimate those to program fiber latest funded XXX,XXX Our

now targeting addresses, We of cyber XX% million year X.X from XXX,XXX the service our fiber addresses. increase previous We million. target are ended service a X.X marketable at

addresses We of XXXX offer served We of XX% XX% be our speeds of XX% or finally, X is from previous up with targeting least previous gig XX% speeds. are higher up of Yes, expecting to we goal at And gig fiber. we our from XXXX total to XX% also with footprint, that XX%. ended of goal our by to footprint. at of XX%. fiber, We our are finished

[indiscernible] technologies of We and will use goal. this a combination to achieve fiber

On the the mix slide, address projected once and met. the can you year-end right goals side service of mix the see at address service -- these are

served are addresses reduce to We time. in footprint planning the X% to by just copper our over

the company. slide, fiber-centric our next On of XXXX you see support priorities vision can our a becoming that

First fiber continuing is our program.

can XXXX. targeting you in are we deliver see, fiber As XXX,XXX to addresses service

We crews XXXX. construction service in expect X/X address delivery fiber of our internal use to approximately for

estimate also in these our and culture as be versus cost we using on internal -- focused external also benefits high as being are contractors, related intangible and of and living our sales will We teams part The savings from communities. XX% there crude execution. our to associates working

heavily our in as as drive to will fiber augmenting markets, well vendors. programs third-party sales increased we penetration XXXX, teams up During in marketing door-to-door internally sales and invest including our both with staffing

supporting fourth as we launched. markets MVNO Mobile, continue into to markets. to quarter, we've sell the penetration expect our Also product We the TDS we grow launched sales limited in in previously

enables broadband TDS offering and our offer products that to and complementary customers. portfolio We a our to XXXX, full adding to across believe our us of to to footprint. entire Mobile we mobile product fully launch intend suite our During services competitive is

on also for a future. way our cost transforming our is of elements top to years in enhance for into a in experience on focused meaningful structure further We're execute company transformation now. to streamlining now our several and lastly, our And been fiber operations XXXX customer margins We've improve and efforts. priority a the

impact top total growth On full billion. in billion we from of made along telecom pressures provided wholesale have year line by divestitures. $X.XX forecasting video, have XXXX. fiber we Slide for revenues guidance where and to voice XX, with This the industry-wide We investments, offset are $X.XX reflects revenues

moderate we $XXX expect to between projected revenue per average million be in EBITDA Adjusted to in residential XXXX. connection XXXX. Additionally, and is million $XXX growth

along the adjusted pressure Our this with EBITDA XXXX priorities, divestitures, on year. recent will put

teams. sales ramping in efforts and as our scaling investing construction internal are as up and marketing staffing We our fully well

million, range Additionally, addresses investing plan XXXX, future affect we efficiencies. and in markets. EA-CAM, million the and from One $XXX deeper we our XXXX, million completed to more fiber be to capital $XXX drive from we savings are what service In fiber divestitures year-over-year bring will deliver to ILEC is XXXX in The expect expenditures we into $XXX the spend guidance. note in transformation which on of initiatives cost in XXX,XXX increased to XXXX. comparisons. primarily related up up to and delivered XXXX, The in cable

contributed In companies million divested revenues. were aggregate, the annual in that $XX

for in forward, economic continue will especially Going we look markets an copper where there opportunities to optimize to path our fiber. to portfolio, is not

turning strong I the to want momentum. of TDS year your the Before all ended efforts, entire we the lot Thanks Telecom a thank call, with over to team.

and We XXXX ahead. about are opportunities excited the

I'll back Walter closing now call the turn for remarks. to

Walter C.D. Carlson

I'm of With know, XX Colleen pleased Vice the and his with talented organization I'll you to as turn XX and back the of for thank us. of heard will of just extraordinarily want this we I part do years Ted of busy and As I year to Ted's Ted through that, as units, transformation to are contributions recognize for continue And side-by-side to on team. have CEO. the be many over enterprise very be ahead proud to to years as past exciting this remarkable, Q&A. the an Chair. service working with you am this TDS. over business from it him company

Colleen Thompson

the Okay. question. for ready now are Regina, first we

Operator

first line James. Rick take Raymond of our from question We'll with the Prentiss

Ric Prentiss

But was what for and quick of the with on right role the at A welcome. top priorities. the to time Walter, take you you, ones changes helm. now Why Walter. obviously, those thanks couple for

for UScellular and and have one now why TDS? then I'll what So changes

Walter C.D. Carlson

been wireless a And planning TDS succession that that spectrum sale years. number So in of that why the the other this operations a on has and with call, the review transformative time of a think as heard over truly are T-Mobile Board spectrum. buying to into we are I entities engaged you've the now?

a time a is He's think the the So time and change make And right on not the with this mentioned, transformative will to is going at executive Board now his have felt he I roles. Chair staying important and transformation that as I Ted's away. this Vice level.

question, So great to changes, businesses that mission transactions. the of second Rick, and the will continuity, post part what the I think in we that be own there will of the these terms

much X wireless I a the So I the to tower operations. and but outstanding don't as business And we believe what so very exit business. correction as course a own change, be we view that businesses the fiber as

Ric Prentiss

sense. Makes

Speaking I've Doug, time towers, and tower for long reporting. of LT a the pushed

tower since 'XX. and still on Straight-line the time. So covered a thanks path January side, we've we to through REIT-style reporting. on transactions, moving a the we transformative for as there's something guys prepaid the that And that's rent that since that. Is step detailing look helpful. also tower adjustment, you the appreciate AFFO that very space next the this costs slide of But at around possibly cash move amortization of

Douglas Chambers

move adjustments in intention it close. revenue to plan It's and our transaction, those and we'll Yes, important to need in post that And line the GAAP is to it is we T-Mobile close to become AFFO it provide something will reporting would adjustments. our we'll AFFO have significant reporting T-Mobile post plans. show that straight

Laurent Therivel

I organizing business be Right you Rick, to about that structure not change I REIT to said asked organization, perspective, REIT. a can't mean just now, a corporate is cross REIT. let order we're a structure to on mean, is as a as governance, from I of in -- right? not Reporting the in the in enterprise but when clarify to as have right a wondered, is in ourselves me to doesn't well there's structure, able hurdles I the want That plans, future, sure variety tower that corporate your AFFO a REIT just make our as you clarify. different place ourselves that organization road. now Doug

Ric Prentiss

the Makes X.X. map. a then road sense a up is on Telecom And of to you Good XX% to Can have target Okay. long the we service term? million? increase addresses or definition the . Why of time, it? of obviously, what why a about? side, sense. How $X right in pacing X.X not give years significant is us why million TDS million many not are And What's long thinking the number? $X.X $X.X

Unknown Executive

your for Rick, Thanks, Yes. question.

are excited parts these big programs, programs being our We about big is geographies. and really, telecom, reaching XXX,XXX represent goals X new which our goals and build is at what extremely addresses said these one rural fiber EA-CAM, we of most

program. expansion The ongoing fiber second is our

So building to as nearly fiber still we XXXX, we're out you those communities. recall, launched in services XXX communities prior the end of

and and completing those our EA-CAM the our as program. continue expansion commensurate out these with objectives. going communities is we're X what programs, really those programs well spending largely to building our XXX to goals So as capacity . to pace represent And financial

Ric Prentiss

path could Or is. of So thinking long the we the long-term are be term decade? what end

Vicki Villacrez

X is already we of on this We on have market here. jump Rick, basis, progress. -- this in on in a pacing some years. the community builds is commitment our Again, the in those doubling down of up And per I'll depending finish the Vicki. bill to

X Some of finish up years. those in

Some communities larger a of build. longer these builds. finish might have larger up The have

fund able our capacity. going see So and our it also are as commensurate and progress schedules to we we construction is forward with with

the would say I long-term over goal. a is X So reasonable years really next .

Ric Prentiss

Great. And closer. again, Walter, welcome . and look working forward you with to

Walter C.D. Carlson

you. Thank Same here.

Operator

line comes Petti of Sebastiano JPMorgan. question from the at next Our

Sebastiano Petti

Congratulations as Walter well.

we as from some did year announce. force the extrapolate of the within But better bit -- of well TDS on costs Just Or penetration beyond drive the in XXXX. that the you're run the a and EBITDA for recovery beyond, trying that some increased now investments I not we as drive you to lack appreciate some we should system, comps burdened asking anticipate little sales are see color to for ongoing term these of perhaps divestitures the of that a the for difficult this more forward by the XXXX rate guidance making but well should as will as be penetration?

So that's on the TDS side.

the spectrum And build-out of you out then you requirements are are thinking your the needed. I maybe about the side, way, of your thinking the monetization bidding on you're I it C-band about additional that "opportunistically overall, -- of portfolio up maybe given and does in on guess timing thinking before process the just But as for the predominantly to or some any guess those the wireless your FCC C-band, changes time about parties. factor thinking just to USM spectrum LT monetizing and coming or that about potential opens the have do of the into Doug, C-band maybe C-band FCC's view potential remainder

Just any color you that be helpful. would might think about

Unknown Executive

for XXXX Sebastiano, beyond I'll question. thank take kind for of Telecom first and the you TDS guidance one your regarding outlook that.

XXXX. So we're pleased our first, to in growth with that I want very say

that As was to was EBITDA our beat deferred And expectations. This in some that acknowledge I due to of year-over-year. growth want you spending growth even XX% internal saw, 'XX adjusted to it 'XX. XXXX own was from do that

Also, comparison. priorities. we're marketing key to to year-over-year affecting a is one is penetration. support in few XXXX investing me our that and say areas you that drive So heard -- sales

capital same costs. internal amount to more crews construction is addresses capital of lower at drive for Another the

to future drive and experience. transformation as margin improve the improvement our well We're customer is efforts. lastly expansion investing as And

all adjusted to pressure growth. EBITDA these near term, of future they're all the drive in So put on but

growth. are And yes, all XXXX, making give but guidance beyond the investments to future we so don't drive we're

Laurent Therivel

LT. Sebastiano, I'll question is This a tackle too.

the you and cap of So talked order we're acquirers to But wait your our want way I spectrum could spectrum. And no. adjust change it to question in that monetization the cap implication I spectrum spectrum sell adjustments there's spectrum. have about make potential that come cap [indiscernible], an which that the necessarily clarify, with way is of doesn't you think thinking about that I is, mean, certainly, or answer the in spectrum place, the what sure to did about

we have [indiscernible]. when the of have spectrum to XX with spectrum with absolutely were those no cap. in companies. We And discussions companies we spectrum all When start companies process to problem some that with most out those of the problems at no sold sale our reached over the spectrum

not be do mean believe for with spectrum. our we're and our the over was sell was saw spectrum opportunistic did what overbook moving that sold spectrum how what and value so What for good drive what still -- to for you opportunistic decision-making a market. sitting it valuable We fair decision drove on be pleased will And We're waiting waiting does to we it we that. we is good won't offer spectrum. we making, What it. means cap, opportunity our very wasn't forward. sold drives the for get that And think a and we

it comes to that -- comes FCC, things I the ] use thinking of they're cap, am certainly how investment. putting from of I briefly encouraged driving up spectrum, behind the talk right appears will more the by money spectrum about decision-making to sector, thinking work spectrum is and by how moves. importance to so the an conversations no, industry. behind the transactions, thinking that's monetizing some FCC of private for when our freeing [ capital think investments they're radios investment how in putting rest to spectrum by to to is not it. But are connect spectrum, encouraged when encourage and and about to and about understand the about do money they're putting which the it the I they that I'm [indiscernible] This from people

Operator

line Sergey comes Dluzhevskiy, of Our with the Investors. next Gamco from question

Sergey Dluzhevskiy

the for is again position. Congratulations on assuming Walter Walter. CEO question first My

XXXX You little X your TDS share about vision priorities, if the to talked company's [indiscernible] maybe bit years? see in a for you could the company, X you do where medium-term

Walter C.D. Carlson

to I that skills longer-term leverage individuals focused well very growth the on horizon And in we meet think of a longer you be set the I XXXX, field of clearly you Sergey, my positioned looking customers we more and person. in our business. X to predicates be. towers and are, opportunistic, X- fiber that. communications. looking remain XXXX to its to priorities these in talents remarks will both areas in spend my make forward that. the our time its X-year steps will of to mind history TDS concentration. prepared what delighting see all, first on to its X I believe should If for extremely meeting think did of Those And years, the our grow, in we want you'll much time And and over I nice the look phone. and out in has in of to being to the I of

Sergey Dluzhevskiy

My about might And it. you Great. capital little pro that, builds for dividend-paying your and understand flows and you second And you for given allocation wireless be cash tower be Got the that potentially new on your is priorities the are business see initial a bit but the just it respective forma partnerships? do how if how could share requirements company potentially so a for once thoughts. CapEx LT, predictable LT. from also early thinking is thoughts this on transactions question could tower I high-level grows. you guys the aggressive

Laurent Therivel

the decision. towers we've we co-locators. being that we since If Sergey. got some thoughts mean larger that any have we number means driver, why of specific. is towers, they going a select understanding [indiscernible] swing little I question. certainly is that we let give profitable existing specific have when on up to have highly on I think the high-level big pretty decommissioning years. on have it's how still for those kind appreciate to the kind can impact give have me XXXX, they've on. provide and be impact could huge of significant XXXX to . and to Doug progressing. guidance. of a XXXX, got it you I XX could on pretty make because That see financials Yes, more just a That so mentioned, color company large And have of premature of towers end that Well, I you towers, but bit T-Mobile months on a on. which a significant through as be number can't to to comes A a

Conversely, mostly we'll we'll rate co-location have on we means do towers X up it, have co-locator less more let's not just because with where say they our but current lower co-locators. decommission. that end have will to towers on That be [indiscernible] towers

have in And less onetime hits those so years. we'll

And about we to that's being so can't structure. why we're necessarily be capital approach our more why specific

up the or of collection T-Mobile way, Now attractive on tower towers of either regardless partnerships business very which attractive flows. create ends Towers said, generates The that being being flows. which cash cash equity

certainly so And we available cash have will at UScellular.

bullish -- You potentially bullish on a capital. business. great I not mentioned use I'm builds. tower particularly think build-to-suit not new don't of that's the I'm

so with going opportunistic be customers will customers invest our to. carrier if we're something those and be However, it's they carrier are are customers, who network, their want to there open expand right, to primary moving be if certainly us to we'll forward,

open be inorganic certainly to We'll growth.

So to something buy we'll tower is at. if there's look new that portfolio opportunities a

clear. back still capital I to in And position requires transaction want from so that a approval. do be to Absolutely, board be return I really That the do. we'll I think to shareholders?

a will a whether we're of a yes, be place from of me, to build-to-suit not, But some moving The at that making than decided new models have again, probably it's think that years that's those And see there. to cash and decision cash I business If the back. the to economics decision whether great current be the for us a could we'll to really not prompt I But being we'll a forward. ways away better cash invest establish will if it's in invest factor. what to that generating decision. couple flows. time, dividend in a remaining model or find transaction make position flows, from has that M&A, send regular more then that's Board kind a So attractive we a

Sergey Dluzhevskiy

Got question you're Obviously, locations another XXXX. for is with Chris. in it. fiber Great. And my XXX,XXX planning last pass to

improve conversion where are customers? making of the quarter. and getting your and for activities terms that to XXXX You're of marketing fourth What about making and what efforts you're those to additions do fiber passings improved results in has you paying achieve for your into build to you still in you converting. better the net during level lately looking feel be sales . investments, the working at and How been of well needs considering

Unknown Executive

can't and to always see our bring internal just having We lower in force, we QX. QX nice needed so really, our really realized our we do in really own with markets to parties augment that than And to in sales we that folks. door-to-door adds and Yes. that and we people where started question. saw to net and help anymore. sales we've do We enough Thank that thought yes, in and staffed you, them XXXX, you that QX, historically, teams Sergey, for started adds. the had diagnose we that we we net And in -- not expansion -- problem in sales external ramp

are to and sales into including hyper staffing our programs, focused marketing sales teams we that staff ensuring is so -- XXXX door-to-door continue And fully that beyond. on right have momentum and that we the up

Operator

will question New with final come Street Research. from Harlalka Vikash of Our the line

Unknown Analyst

your locations [indiscernible] or locations. suggests this -- expand the XXX,XXX map need that locations footprint to then those part my -- of that locations is about current First -- you only And on-road of are small these as for of of you're back about a to mentioned additional by XXX,XXX locations? expansions on XXX,XXX only most you chem part [indiscernible] building on

Unknown Executive

your is Yes. math No, exactly right.

our ballpark. And are the program. pace A-CAM program. Those right in historically. there's One ILEC This is you're our year copper the around into our additional enhanced the $XXX,XXX tended We've that And of markets. incremental program. the addresses ongoing second the part So pieces fiber to fiber is expansion is footprint. a add then to program X bringing of

it's to converting fiber addresses So copper addresses.

So bringing but and of fiber some addresses to rural our more adding it's most adding geographies. incremental higher not speeds footprint,

about So excited programs. we're these very

Unknown Analyst

Got it.

these to go on question looking current footprint? on you looking footprint? these that build this are these then fiber your you Or to looking locations what And my beyond? additional that locations? organic the competitors of edge building this, Are CAM, And it? so the upon outside that it is like in these [indiscernible] cost lastly profile to would mostly And are additional you're on locations locations main what how the is of the of up you're who locations. are And build in

Unknown Executive

Yes.

this few So first for XXX a characteristics. started back hand-selected We ago fiber various we really communities nearly when years expansion program.

very there is One fiber. them of landscape where little competitive being [indiscernible] was favorable incumbent

Another percentages, growth like opportunities. household and formation was very high growth

opportunities. clustering Another was

look where if Pacific largely really, the Northwest clusters. we've and in it's in various at so you And been building, Wisconsin

to these just And communities at build [indiscernible] selected. XXXX, are hand continuing we're in out. and territories. end incumbent we're of those initially of so our those But footprint expansion all all are We that build we continuing the out to outside and

competitive of kind very in that's to we the types areas our about those the of ability markets, So and win landscape good and those markets. feel still in

extremely are I we've our build will something low say of internal that's crews. don't keep reasons why in construction that share, of That's possible. build invested costs, one is what to terms but costs our we In as the that teams as dedicated

going innovative our that's which of XXXX, versus delivery see for XX% very material so high as where we networks high-quality to and X/X address savings input account in build we labor lower costs. ways external construction and we with use as constantly call internal new build costs, also we're ICCs versus you and thinking And with As ICCs, contractors heard say, me to crews, contractors. external of lower our designs

Vicki Villacrez

is markets, we've footprint last total seen the expansion footprint Vicki. well. here discussing greenfield new expansion this our as I'll to is expansion, is in part XX% This X our spoke Yes. really of over that bills in that I that years. Chris a jump is and These

in growth profile and new good communities, new homes. So

So that's great.

factors right priority the with the number pacing every the capital EBITDA market. now we that of a dependent time have In builds our we our program this different pacing also terms It table. spending. But would of that tell funding, in to in the is That focused on do on again, #X get closed. of anticipate the over completion on is you dependent deals growth that these of we're of on the is I and always and those

any expect time. fund use level We opportunity continue and funding accelerating over at would TDS be closings proceeds -- certainly and to program the an multiple our of perhaps

Unknown Analyst

couple the on a side, U.S. quick then And just [indiscernible] it. ones. of Got

We to the expected something stopped partnerships those do? deals on AT&T partnerships the [indiscernible] -- that table? transaction what wanted the wireless that is with happen [indiscernible]. to around the And to Is and from up related to time the happen partnerships? that same you you cleaning not Or the

Laurent Therivel

The [indiscernible] cost correctly. from

Michael Rollins

. correct. that's Yes,

Laurent Therivel

you But gosh, attractive as view don't All have attractive I basis very ongoing right. clean up. feel up mentioned We behind. I generates energy to an mean post-tax to better about anything modeling. the right? these that sure see I'm we're Great. clean flows really open needs assets. [indiscernible]. don't the cash financial always long-term on put any we that clean need feel if I hardly operational I the than to agree clean anything that don't pretty not and . good we that your returns phrase We're up, are a with transaction those assets. returns

Unknown Analyst

one those that given in in carriers [indiscernible] X Got sell last Why didn't the transactions, And of all sort question. That's are of it. helpful. [indiscernible] network?

Laurent Therivel

But confident it to plenty in be what monetize long that of doesn't to we're came that conversations. able an looking to we very that We for, There value spectrum the offered feel was the future. market were those my ahead and not Really of of -- book transactions to from bids our and down comes value. value. accepted we sense statement, as you received we bids receive the And and ahead can can announced, did as still for mean the and we're down It's we bids see run. -- that we in you from going there it that value that were interest. are our

Operator

any And back remarks. that will the for conclude hand closing our question-and-answer call I'll Colleen over session. to Thompson And

Colleen Thompson

for Thanks, great questions. with out today. reach IR to Please time Okay. additional everyone, weekend. Have a your

Operator

Thank meeting. This you today's all joining. for conclude will

disconnect. now You may

United States Cellular Corporat (UZD) 21 Feb 252024 Q4 Earnings call transcript