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TDS reports fourth quarter and full year 2023 results

Published

3 years ago

on

Investing in our networks; Provides 2024 guidance

CHICAGO, Feb. 16, 2024 /PRNewswire/ — 

As previously announced, TDS will hold a teleconference on February 16, 2024 at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE: TDS) reported total operating revenues of $1,313 million for the fourth quarter of 2023, versus $1,357 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(523) million and $(4.64), respectively, for the fourth quarter of 2023 compared to $(43) million and $(0.38), respectively, in the same period one year ago.

Excluding a $547 million ($511 million, net of tax impacts) non-cash charge related to goodwill impairment recorded at TDS Telecom during the fourth quarter of 2023, net income (loss) available to TDS common shareholders and related diluted earnings (loss) per share for the fourth quarter of 2023 were $(12) million and $(0.11), respectively.

TDS reported total operating revenues of $5,160 million and $5,413 million for the years ended 2023 and 2022, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(569) million and $(5.06), respectively, for the year ended 2023 compared to $(7) million and $(0.07), respectively, for the year ended 2022.

Excluding a $547 million ($511 million, net of tax impacts) non-cash charge related to goodwill impairment recorded at TDS Telecom during the fourth quarter of 2023, net income (loss) available to TDS common shareholders and related diluted earnings (loss) per share for the year ended 2023 were $(58) million and $(0.53), respectively.

Full year 2023 Highlights*

UScellular

Postpaid ARPU grew 2%Delivering on growth initiatives Fixed wireless customers grew 46% to 114,000Tower rental revenues grew 8% to $100 millionIncreased profitabilityNet income, Adjusted OIBDA and Adjusted EBITDA upGenerated positive free cash flow and increased cash flows from operating activities Began launching 5G mid-band network – providing low latency and faster speeds

TDS Telecom

Exceeded full year 2023 fiber address goalDelivered 217,000 fiber service addressesExecuting on fiber broadband strategyExpanded its footprint 12% – increased total service addresses to 1.7 millionResidential broadband connections grew 6% and Residential revenue per connection grew 4%Total Wireline expansion residential revenues grew to $75 million

*Comparisons are Year Ended December 31, 2023 to Year Ended December 31, 2022

“In 2023, the TDS Family of Companies continued to make substantial investments in our businesses in order to improve our competitiveness,” said LeRoy T. Carlson, Jr., TDS President and CEO. “UScellular made significant progress on its 5G network, while TDS Telecom ended the year with all of its fiber expansion communities initially launched.

“UScellular increased Postpaid ARPU 2% and drove strong results in fixed wireless in 2023. It was a challenging year from a mobility subscriber standpoint as the environment remains competitive. UScellular’s goal was to balance subscriber objectives with financial goals, which led to increased profitability year over year.

“In 2024, UScellular plans to continue focusing on improving customer results, growth in fixed wireless and towers, and maintaining financial discipline as we advance the network through mid-band deployment.

“In 2023, TDS Telecom delivered 217,000 marketable fiber service addresses, up 24% from the initial 2023 target. Residential broadband connections increased 6%, while residential revenue per connection grew 4%. With all markets launched, the team plans to focus on increasing broadband penetration and revenues across the fiber footprint. We expect this to result in improved profitability in 2024.”

Recent Development: On August 4, 2023, TDS and UScellular announced that the Boards of Directors of both companies decided to initiate a process to explore a range of strategic alternatives for UScellular. The process is still ongoing.

2024 Estimated Results

TDS’ current estimates of full-year 2024 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of February 16, 2024 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

UScellular

2024 Estimated
Results

Actual Results for

the Year Ended

December 31, 2023

(Dollars in millions)

Service revenues

$2,950-$3,050

$3,044

Adjusted OIBDA1, 2

$750-$850

$818

Adjusted EBITDA1, 2

$920-$1,020

$986

Capital expenditures

$550-$650

$611

TDS Telecom

2024 Estimated
Results

Actual Results for
the Year Ended
December 31, 2023

(Dollars in millions)

Total operating revenues

$1,070-$1,100

$1,028

Adjusted OIBDA1

$310-$340

$279

Adjusted EBITDA1

$310-$340

$285

Capital expenditures

$310-$340

$577

 

The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) or Income (loss) before income taxes. In providing 2024 estimated results, TDS has not completed the below reconciliation to Net income (loss) because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.

UScellular

TDS Telecom

2024 Estimated
Results2

Actual Results for

the Year Ended

December 31, 2023

2024 Estimated
Results2

Actual Results for

the Year Ended

December 31, 2023

(Dollars in millions)

Net income (loss) (GAAP)

N/A

$58

N/A

($483)

Add back:

Income tax expense

N/A

53

N/A

(26)

Income (loss) before income taxes (GAAP)

$40-$140

$111

$40-$70

($509)

Add back:

Interest expense

195

196

—

(8)

Depreciation, amortization and accretion expense

665

656

270

245

EBITDA (Non-GAAP)1

$900-$1,000

$963

$310-$340

($272)

Add back or deduct:

Expenses related to strategic alternatives review

—

8

—

—

Loss on impairment of goodwill

—

—

—

547

(Gain) loss on asset disposals, net

20

17

—

10

(Gain) loss on license sales and exchanges, net

—

(2)

—

—

Adjusted EBITDA (Non-GAAP)1

$920-$1,020

$986

$310-$340

$285

Deduct:

Equity in earnings of unconsolidated entities

160

158

—

—

Interest and dividend income

10

10

—

4

Other, net

—

—

—

2

Adjusted OIBDA (Non-GAAP)1

$750-$850

$818

$310-$340

$279

Numbers may not foot due to rounding.

1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS’ 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. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of UScellular while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income (loss) or Income (loss) before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for December 31, 2023, can be found on TDS’ website at investors.tdsinc.com.

2

2024 Estimated Results do not reflect any anticipated costs, expenses or results of the strategic alternatives review referenced above.

 

Conference Call Information
TDS will hold a conference call on February 16, 2024 at 9:00 a.m. Central Time.

Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://events.q4inc.com/attendee/105947395Access the call by phone at (888) 330-2384 (US/Canada), passcode: 1328528

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com.

About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 8,800 people as of December 31, 2023.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

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: whether any strategic alternatives for UScellular will be successfully identified or completed; whether any such strategic alternative will result in additional value for TDS or its shareholders and whether the process will have an adverse impact on TDS’ businesses; intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms and changes in roaming practices; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS’ smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; the effect on TDS’ business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and the impact, duration and severity of public health emergencies. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of TDS’ Form 10-K.

For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
OneNeck IT Solutions: www.oneneck.com

 

United States Cellular Corporation

Summary Operating Data (Unaudited)

 

As of or for the Quarter Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Retail Connections

Postpaid

Total at end of period

4,106,000

4,159,000

4,194,000

4,223,000

4,247,000

Gross additions

129,000

128,000

125,000

137,000

154,000

Handsets

80,000

84,000

83,000

93,000

105,000

Connected devices

49,000

44,000

42,000

44,000

49,000

Net additions (losses)

(50,000)

(35,000)

(28,000)

(24,000)

(17,000)

Handsets

(53,000)

(38,000)

(29,000)

(25,000)

(20,000)

Connected devices

3,000

3,000

1,000

1,000

3,000

ARPU1

$        51.61

$        51.11

$        50.64

$        50.66

$        50.60

ARPA2

$      131.63

$      130.91

$      130.19

$      130.77

$      130.97

Handset upgrade rate3

5.8 %

4.5 %

4.8 %

4.9 %

7.0 %

Churn rate4

1.44 %

1.30 %

1.21 %

1.27 %

1.35 %

Handsets

1.22 %

1.11 %

1.01 %

1.06 %

1.12 %

Connected devices

3.03 %

2.64 %

2.65 %

2.78 %

2.99 %

Prepaid

Total at end of period

451,000

462,000

462,000

470,000

493,000

Gross additions

43,000

52,000

50,000

43,000

61,000

Net additions (losses)

(11,000)

—

(8,000)

(23,000)

—

ARPU1, 5

$        32.32

$        33.44

$        33.86

$        33.19

$        33.34

Churn rate4

3.87 %

3.68 %

4.18 %

4.63 %

4.11 %

Market penetration at end of period

Consolidated operating population

32,350,000

32,350,000

32,350,000

32,350,000

32,370,000

Consolidated operating penetration6

15 %

15 %

15 %

15 %

15 %

Capital expenditures (millions)

$           148

$           111

$           143

$           208

$           176

Total cell sites in service

7,000

6,973

6,952

6,950

6,945

Owned towers

4,373

4,356

4,341

4,338

4,336

Due to rounding, the sum of quarterly results may not equal the total for the year.

1

Average Revenue Per User (ARPU) – metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:

Postpaid ARPU consists of total postpaid service revenues and postpaid connections.Prepaid ARPU consists of total prepaid service revenues and prepaid connections.

2

Average Revenue Per Account (ARPA) – metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.

3

Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.

4

Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.

5

Fourth quarter 2023 Prepaid ARPU excludes a $6 million reduction of prepaid revenue related to an adjustment to correct a prior period error recorded in the fourth quarter of 2023.

6

Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.

 

TDS Telecom

Summary Operating Data (Unaudited)

 

As of or for the Quarter Ended

12/31/2023

9/30/2023

6/30/2023

3/31/2023

12/31/2022

Residential connections

Broadband

Wireline, Incumbent

244,800

248,800

249,200

247,900

249,100

Wireline, Expansion

92,200

79,400

70,200

62,800

56,100

Cable

202,900

204,400

204,200

204,700

204,800

Total Broadband

539,800

532,600

523,600

515,400

510,000

Video

131,500

132,400

132,300

132,600

135,300

Voice

281,600

284,000

288,200

289,200

291,600

Total Residential connections

952,900

949,000

944,100

937,200

936,900

Commercial connections

210,200

217,400

223,300

229,800

236,000

Total connections

1,163,100

1,166,400

1,167,400

1,167,000

1,173,000

Residential revenue per connection1

$           62.74

$           62.15

$           61.97

$           60.24

$           59.91

Capital expenditures (millions)

$               143

$               172

$               132

$               130

$               165

Numbers may not foot due to rounding.

1

Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023

vs. 2022

2023

2022

2023

vs. 2022

(Dollars and shares in millions, except per share amounts)

Operating revenues

UScellular

$ 1,000

$           1,048

(5) %

$ 3,906

$           4,169

(6) %

TDS Telecom

261

257

2 %

1,028

1,020

1 %

All Other1

52

52

(1) %

226

224

1 %

1,313

1,357

(3) %

5,160

5,413

(5) %

Operating expenses

UScellular

Expenses excluding depreciation, amortization and accretion

812

885

(8) %

3,096

3,379

(8) %

Depreciation, amortization and accretion

166

179

(8) %

656

700

(6) %

Loss on impairment of licenses

—

—

—

—

3

N/M

(Gain) loss on asset disposals, net

3

11

(67) %

17

19

(9) %

(Gain) loss on sale of business and other exit costs, net

—

—

N/M

—

(1)

N/M

(Gain) loss on license sales and exchanges, net

(2)

—

N/M

(2)

—

N/M

979

1,075

(9) %

3,767

4,100

(8) %

TDS Telecom

Expenses excluding depreciation, amortization and accretion

186

192

(4) %

749

732

2 %

Depreciation, amortization and accretion

65

56

17 %

245

215

14 %

Loss on impairment of goodwill

547

—

N/M

547

—

N/M

(Gain) loss on asset disposals, net

1

3

(59) %

10

7

31 %

799

252

N/M

1,551

954

63 %

All Other1

Expenses excluding depreciation and amortization

56

52

8 %

242

222

9 %

Depreciation and amortization

3

3

(6) %

14

14

(2) %

(Gain) loss on asset disposals, net

—

—

N/M

—

1

(95) %

59

56

7 %

256

237

8 %

Total operating expenses

1,837

1,383

33 %

5,574

5,291

5 %

Operating income (loss)

UScellular

21

(27)

N/M

139

69

N/M

TDS Telecom

(538)

5

N/M

(523)

66

N/M

All Other1

(7)

(4)

N/M

(30)

(13)

N/M

(524)

(26)

N/M

(414)

122

N/M

Investment and other income (expense)

Equity in earnings of unconsolidated entities

37

36

4 %

159

159

–

Interest and dividend income

4

7

(41) %

20

17

19 %

Interest expense

(66)

(55)

(20) %

(244)

(174)

(40) %

Other, net

1

—

N/M

2

1

94 %

Total investment and other income (expense)

(24)

(12)

(96) %

(63)

3

N/M

Income (loss) before income taxes

(548)

(38)

N/M

(477)

125

N/M

Income tax expense (benefit)

(45)

(8)

N/M

10

53

(81) %

Net income (loss)

(503)

(30)

N/M

(487)

72

N/M

Less: Net income (loss) attributable to noncontrolling interests, net of tax

3

(4)

N/M

13

10

28 %

Net income (loss) attributable to TDS shareholders

(506)

(26)

N/M

(500)

62

N/M

TDS Preferred Share dividends

17

17

—

69

69

–

Net loss attributable to TDS common shareholders

$   (523)

$   (43)

N/M

$   (569)

$      (7)

N/M

Basic weighted average shares outstanding

113

113

–

113

114

(1) %

Basic earnings (loss) per share attributable to TDS common shareholders

$  (4.64)

$  (0.38)

N/M

$  (5.05)

$  (0.07)

N/M

Diluted weighted average shares outstanding

113

113

–

113

114

(1) %

Diluted earnings (loss) per share attributable to TDS common shareholders

$  (4.64)

$  (0.38)

N/M

$  (5.06)

$  (0.07)

N/M

N/M – Percentage change not meaningful.

Numbers may not foot due to rounding.

1

Consists of TDS corporate, intercompany eliminations and other business operations not included in UScellular and TDS Telecom segments.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

Year Ended December 31,

2023

2022

(Dollars in millions)

Cash flows from operating activities

Net income (loss)

$             (487)

$                 72

Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities

Depreciation, amortization and accretion

915

929

Bad debts expense

111

138

Stock-based compensation expense

41

42

Deferred income taxes, net

8

47

Equity in earnings of unconsolidated entities

(159)

(159)

Distributions from unconsolidated entities

150

145

Loss on impairment of intangible assets

547

3

(Gain) loss on asset disposals, net

27

27

(Gain) loss on sale of business and other exit costs, net

—

(1)

(Gain) loss on license sales and exchanges, net

(2)

—

Other operating activities

8

10

Changes in assets and liabilities from operations

Accounts receivable

2

(69)

Equipment installment plans receivable

(20)

(199)

Inventory

61

(90)

Accounts payable

(99)

32

Customer deposits and deferred revenues

(8)

48

Accrued taxes

50

127

Other assets and liabilities

(3)

53

Net cash provided by operating activities

1,142

1,155

Cash flows from investing activities

Cash paid for additions to property, plant and equipment

(1,211)

(1,161)

Cash paid for licenses and other intangible assets

(130)

(614)

Other investing activities

14

(8)

Net cash used in investing activities

(1,327)

(1,783)

Cash flows from financing activities

Issuance of long-term debt

1,081

1,154

Repayment of long-term debt

(723)

(332)

Issuance of short-term debt

—

110

Repayment of short-term debt

(60)

(50)

TDS Common Shares reissued for benefit plans, net of tax payments

(3)

(4)

UScellular Common Shares reissued for benefit plans, net of tax payments

(6)

(5)

Repurchase of TDS Common Shares

(6)

(40)

Repurchase of UScellular Common Shares

—

(43)

Dividends paid to TDS shareholders

(153)

(151)

Payment of debt and equity issuance costs

(5)

(2)

Distributions to noncontrolling interests

(3)

(3)

Cash paid for software license agreements

(66)

(23)

Other financing activities

—

2

Net cash provided by financing activities

56

613

Net decrease in cash, cash equivalents and restricted cash

(129)

(15)

Cash, cash equivalents and restricted cash

Beginning of period

399

414

End of period

$               270

$               399

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

 

ASSETS

December 31,

2023

2022

(Dollars in millions)

Current assets

Cash and cash equivalents

$                   236

$                   360

Accounts receivable, net

1,074

1,181

Inventory, net

208

268

Prepaid expenses

86

102

Income taxes receivable

4

59

Other current assets

52

58

Total current assets

1,660

2,028

Assets held for sale

15

26

Licenses

4,702

4,699

Goodwill

—

547

Other intangible assets, net

183

204

Investments in unconsolidated entities

505

495

Property, plant andequipment, net

5,062

4,760

Operating lease right-of-use assets

987

995

Other assets and deferred charges

807

796

Total assets

$              13,921

$              14,550

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

 

LIABILITIES AND EQUITY

December 31,

2023

2022

(Dollars in millions, except per share amounts)

Current liabilities

Current portion of long-term debt

$                     26

$                     19

Accounts payable

360

506

Customer deposits and deferred revenues

277

285

Accrued interest

12

12

Accrued taxes

43

46

Accrued compensation

149

144

Short-term operating lease liabilities

147

146

Other current liabilities

170

356

Total current liabilities

1,184

1,514

Deferred liabilities and credits

Deferred income tax liability, net

975

969

Long-term operating lease liabilities

890

908

Other deferred liabilities and credits

784

813

Long-term debt, net

4,080

3,731

Noncontrolling interests with redemption features

12

12

Equity

TDS shareholders’ equity

Series A Common and Common Shares, par value $0.01 per share

1

1

Capital in excess of par value

2,558

2,551

Preferred Shares, par value $0.01 per share

1,074

1,074

Treasury shares, at cost

(465)

(481)

Accumulated other comprehensive income

11

5

Retained earnings

2,023

2,699

Total TDS shareholders’ equity

5,202

5,849

Noncontrolling interests

794

754

Total equity

5,996

6,603

Total liabilities and equity

$              13,921

$              14,550

 

Balance Sheet Highlights

(Unaudited)

December 31, 2023

UScellular

TDS

Telecom

TDS Corporate

& Other

Intercompany

Eliminations

TDS

Consolidated

(Dollars in millions)

Cash and cash equivalents

$                  150

$                    37

$                    90

$                  (41)

$                  236

Licenses and other intangible assets

$              4,693

$                  187

$                      5

$                    —

$              4,885

Investment in unconsolidated entities

461

4

48

(8)

505

$              5,154

$                  191

$                    53

$                    (8)

$              5,390

Property, plant and equipment, net

$              2,576

$              2,402

$                    84

$                    —

$              5,062

Long-term debt, net:

Current portion

$                    20

$                    —

$                      6

$                    —

$                    26

Non-current portion

3,044

3

1,033

—

4,080

$              3,064

$                      3

$              1,039

$                    —

$              4,106

 

TDS Telecom Highlights

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023 vs. 2022

2023

2022

2023 vs. 2022

(Dollars in millions)

Operating revenues

Residential

Wireline, Incumbent

$         88

$         87

1 %

$       352

$       350

1 %

Wireline, Expansion

23

14

61 %

75

49

53 %

Cable

69

67

2 %

273

270

1 %

Total residential

179

168

6 %

700

669

5 %

Commercial

37

43

(13) %

155

173

(10) %

Wholesale

45

45

(1) %

172

177

(3) %

Total service revenues

261

256

2 %

1,027

1,019

1 %

Equipment revenues

—

—

(22) %

1

1

(12) %

Total operating revenues

261

257

2 %

1,028

1,020

1 %

Cost of services

104

110

(5) %

423

418

1 %

Cost of equipment and products

—

—

N/M

—

1

(26) %

Selling, general and administrative expenses

82

83

(1) %

326

313

4 %

Depreciation, amortization and accretion

65

56

17 %

245

215

14 %

Loss on impairment of goodwill

547

—

N/M

547

—

N/M

(Gain) loss on asset disposals, net

1

3

(59) %

10

7

31 %

Total operating expenses

799

252

N/M

1,551

954

63 %

Operating income (loss)

$     (538)

$           5

N/M

$     (523)

$         66

N/M

N/M – Percentage change not meaningful.

Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.

Financial Measures and Reconciliations

Free Cash Flow

Three Months Ended

December 31,

Year Ended

December 31,

TDS Consolidated

2023

2022

2023

2022

(Dollars in millions)

Cash flows from operating activities (GAAP)

$                 218

$                 255

$              1,142

$              1,155

Cash paid for additions to property, plant and equipment

(304)

(367)

(1,211)

(1,161)

Cash paid for software license agreements

(37)

(18)

(66)

(23)

Free cash flow (Non-GAAP)1

$               (123)

$               (130)

$               (135)

$                  (29)

Three Months Ended

December 31,

Year Ended

December 31,

UScellular

2023

2022

2023

2022

(Dollars in millions)

Cash flows from operating activities (GAAP)

$                 148

$                 180

$                 866

$                 832

Cash paid for additions to property, plant and equipment

(155)

(192)

(608)

(602)

Cash paid for software license agreements

(37)

(17)

(66)

(22)

Free cash flow (Non-GAAP)1

$                  (44)

$                  (29)

$                 192

$                 208

1

Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

 

EBITDA, Adjusted EBITDA and Adjusted OIBDA

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes.

Year Ended December 31,

UScellular

2023

2022

(Dollars in millions)

Net income (GAAP)

$                 58

$                 35

Add back or deduct:

Income tax benefit

53

37

Income before income taxes (GAAP)

111

72

Add back:

Interest expense

196

163

Depreciation, amortization and accretion expense

656

700

EBITDA (Non-GAAP)

963

935

Add back or deduct:

Expenses related to strategic alternatives review

8

—

Loss on impairment of licenses

—

3

(Gain) loss on asset disposals, net

17

19

(Gain) loss on sale of business and other exit costs, net

—

(1)

(Gain) loss on license sales and exchanges, net

(2)

—

Adjusted EBITDA (Non-GAAP)

986

956

Deduct:

Equity in earnings of unconsolidated entities

158

158

Interest and dividend income

10

8

Adjusted OIBDA (Non-GAAP)

$               818

$               790

 

Net income excluding Goodwill impairment charge

The following non-GAAP financial measures present certain information in the table below excluding the effect of the goodwill impairment charge at TDS Telecom and related tax impacts. The goodwill impairment charge, which occurred in the fourth quarter of 2023, is being excluded in this presentation, as it is not related to the current operations of TDS. TDS believes these measures may be useful to investors and other users of its financial information when comparing the current period financial results with periods that were not impacted by such a charge.

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023

2022

(Dollars in millions)

Net loss attributable to TDS common shareholders (GAAP)

$               (523)

$                  (43)

$               (569)

$                    (7)

Adjustments:

Loss on impairment of goodwill

547

—

547

—

Deferred tax benefit on the tax-amortizable portion of the impaired Goodwill

(36)

—

(36)

—

Subtotal of Non-GAAP adjustments

511

—

511

—

Net loss attributable to TDS common shareholders excluding goodwill impairment
charge (Non-GAAP)

(12)

(43)

(58)

(7)

Noncontrolling interest adjustment to compute earnings (loss)

—

—

(1)

(1)

Net loss attributable to TDS common shareholders excluding goodwill impairment
charge used in diluted earnings (loss) per share (Non-GAAP)

$                  (12)

$                  (43)

$                  (59)

$                    (8)

Diluted weighted average shares outstanding

113

113

113

114

Diluted earnings (loss) per share attributable to TDS common shareholders (GAAP)

$              (4.64)

$              (0.38)

$              (5.06)

$              (0.07)

Adjustments:

Loss on impairment of goodwill

4.85

—

4.85

—

Deferred tax benefit on the tax-amortizable portion of the impaired Goodwill

(0.32)

—

(0.32)

—

Diluted earnings (loss) per share attributable to TDS common shareholders excluding
impairment of goodwill charge (Non-GAAP)

$              (0.11)

$              (0.38)

$              (0.53)

$              (0.07)

 

View original content:https://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2023-results-302063497.html

SOURCE Telephone and Data Systems, Inc.

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Global Security & Technology Summit Unveils Month-Long Program of Activities Ahead of December Event

Published

6 hours ago

on

October 24, 2026

By

RIYADH, Saudi Arabia, Oct. 24, 2026 /PRNewswire/ — The Organizing Committee of the Global Security & Technology Summit (GSTS) held an introductory session today at the Ministry of Interior’s headquarters in Riyadh, bringing together representatives from the government, private, and nonprofit sectors to introduce the program of activities leading up to the summit. The upcoming summit will be held in Riyadh under the patronage of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, under the supervision of HRH Prince Abdulaziz bin Saud bin Naif bin Abdulaziz Al Saud, Minister of Interior, and organized by the Ministry of Interior in cooperation with Tuwaiq Academy.

During the session, the Organizing Committee presented the comprehensive GSTS program, comprising three key components: GSTS Month, running from November 1 to 30, 2026; the Global Security & Innovation Fair (SAIF), taking place from November 24 to 26, 2026; and the main Summit, scheduled for December 18 to 20, 2026, in Riyadh. Together, these events form an integrated program designed to advance security and technology innovation, strengthen national capabilities, and foster international cooperation.

GSTS Month will feature working groups, boot camps, training programs, knowledge-sharing sessions, and technical workshops across Saudi Arabia’s 13 administrative regions, delivered both in person and remotely in collaboration with specialized entities. The month-long program aims to develop national capabilities, identify emerging talent, enrich knowledge-sharing opportunities, and equip professionals with the knowledge and skills needed to develop innovative solutions to future security and technology challenges.

The main Summit will bring together global leaders, decision-makers, experts, and innovators to explore the future of security and technology, promote the integration of advanced technologies within the security sector, strengthen national capabilities, support innovation, and foster international cooperation, further positioning the Kingdom as a global hub for security and technology.

Showcasing the latest technological breakthroughs and security solutions, the summit will bring together government entities, private sector organizations, academic institutions, and research centers to facilitate knowledge exchange and collaboration across key fields, including cybersecurity, artificial intelligence (AI), the Internet of Things (IoT), smart security solutions, emerging technologies, and crisis management. The program will also feature main sessions, specialized discussions, and interactive exhibitions. Registration is available at gsts.sa.

Advisor to HRH the Minister of Interior and Chairman of the GSTS Organizing Committee, Ahmed Altowayan, stated that the summit builds on Saudi Arabia’s efforts to establish an advanced security and technology ecosystem focused on knowledge and innovation, keeping pace with rapid developments and future challenges.

Mr. Altowayan noted that the summit is a global platform for strengthening cooperation and exchanging expertise, anticipating future developments in security and technology, and developing strategic partnerships and innovative solutions that enhance the efficiency and readiness of security systems.

Vice Chairman of the GSTS Organizing Committee, Eng. Abdulaziz Alhammadi, said that the summit will offer a range of integrated programs and activities focused on enhancing national skills, encouraging innovation, and supporting international cooperation.

He added that GSTS Month will help build national capabilities, discover talent, and develop skills, with SAIF providing a platform for innovators and researchers from around the world to showcase leading technological solutions, while the main Summit will bring together leaders and experts to discuss the future of security and technology and explore new strategic partnership opportunities.

SAIF will take place at the Riyadh International Convention & Exhibition Center, bringing together innovators, researchers, technology talents, and industry experts from around the world to showcase promising innovations and projects across 14 fields of technology and innovation. The fair will provide opportunities to engage with project owners, including students, graduates, and entrepreneurs, and explore the different stages of innovation development through interactive zones, panel discussions on emerging security and innovation trends, and knowledge-sharing workshops led by specialists. Visitor registration is open to participants from within and outside the Kingdom through saifair.sa.

The introductory session also featured contributions from representatives of government, private, and nonprofit sector entities, alongside members of the media. Discussions focused on developing national capabilities in security and technology, strengthening students’ technical expertise, translating scientific research into practical solutions, and supporting Saudi companies in developing security and technology solutions and advancing digital transformation.

Organized by the Ministry of Interior in cooperation with Tuwaiq Academy, GSTS is produced by Tahaluf, with the Ministry of Education serving as Strategic Scientific Partner, Tahakom as Founding Partner, and Elm as Principal Partner.

Registration for participants from within and outside the Kingdom is available at gsts.sa.

Click here to view the media kit. 

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Axon Announces Body 5: Next-Generation Camera Built for the AI Era

Published

11 hours ago

on

October 24, 2026

By

Axon Body 5 delivers 25x the AI processing power of earlier-generation cameras, with upgraded connectivity, audio and battery life to support real-time situational awareness in the field

SCOTTSDALE, Ariz., Oct. 24, 2026 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in public safety technology, today announced Axon Body 5, its newest body-worn camera designed to bring more powerful intelligence, connectivity and real-time support directly to officers in the field.

For years, Axon body cameras have helped agencies capture critical evidence and create greater transparency. Body 5 is built to help officers during the call, with information, assistance and backup on the spot.

“Officers shouldn’t have to choose between getting information and watching the scene. With Axon Body 5, they don’t,” said Rick Smith, Axon Founder and CEO. “They capture a license or document with the camera, keep their hands free and eyes up, and get information faster than writing it down and calling it in by radio. An officer fully engaged with the person in front of them, not down at a notepad, is a safer officer and a better-served community.”

Axon Body 5: Built for the AI Era

Built from the ground up for the AI era, Axon Body 5 delivers 25x the AI processing power than earlier generation Axon body cameras, alongside advancements in connectivity, audio, video and battery life. Together, these upgrades give the camera the physical power to run smarter AI features — both today and as new AI tools are developed in the future — while also making it more dependable for officers to use every day. 

For the first time, Axon is also introducing two versions of its latest flagship camera: Axon Body 5 and Axon Body 5 Pro.

Both models feature several key advancements, including:

25x more processing power for AI: A powerful new computing architecture creates the capacity to support current and future AI features directly on the body camera.Enhanced video: Improved video captures clearer evidence across challenging environments, including better low-light performance.Improved connectivity: Seamless connectivity in urban and remote environments – and more precise location capability – helps officers, cameras and remote support teams stay connected when timely information matters most.Longer battery life: 20% more battery life than the previous generation helps keep the camera ready and connected throughout an officer’s shift.

The Axon Body 5 Pro will continue to gain new AI capabilities as they become available, growing along with the AI Era Plan. Additionally, new hardware features include:

A near-focus camera: An additional dedicated camera lens lets officers scan driver’s licenses to check status and search for wants or warrants in seconds, without returning to the patrol vehicle, with relevant information sent to Axon Fusus to support real-time operations.Front-facing speakers: Four additional speakers project even more powerful audio toward the person an officer is speaking with, helping real-time translations from Axon Assistant carry more clearly over heavy traffic or crowd noise. Additional memory: Extra space lets the camera run several AI tools at once, helping officers stay better informed and work faster.

Bringing More of Axon’s AI Era Into the Field

Axon Body 5 helps officers get more out of the Axon AI Era Plan by bringing smart tools right to the scene. Axon’s portfolio already supports public safety professionals across a growing range of tasks. For example, Draft One helps officers turn body-camera audio into high-quality report drafts and Axon Assistant provides voice-based information access and real-time translation.

Increasingly, Axon is also bringing AI into real-time operations.

Axon Guardian is a new category of AI features within the AI Era Plan that was specifically created to work with an officer’s field-based devices – starting with body cameras and in-car cameras – to improve safety. Guardian is designed to flag potential risks as situations unfold and create alerts when additional attention may be needed. Two of the first features include:

Escalation Detection: When an Axon Body 4 or Axon Body 5 camera is activated and recording, Guardian has the ability to detect potential conflicts in real time and create an alert in Axon Fusus. A human reviews the livestream and decides if additional support or action is needed.Approach Alert: When active on Axon Fleet 3, Guardian can detect if the door of a stopped vehicle opens and alert the officer through the in-car display and their body-worn camera.

Combined, Axon Body 5 and the expanding AI Era portfolio demonstrate the importance of AI as a critical resource to assist public safety professionals before, during and after an incident — reducing administrative burden, improving situational awareness and helping protect more lives.

Innovating Responsibly

Axon’s Responsible Innovation framework guides the development of all of its products. Designed with this in mind, Axon Body 5 and Guardian prioritize human oversight and maintain agency control over data. As a key part of the responsible innovation process, Axon’s independent Ethics and Equity Advisory Council was created to help responsibly develop and deploy new technologies with transparency, while aligning with community expectations.

General availability dates for Axon Body 5 and Axon Guardian will be announced soon. Product features and capabilities vary by configuration. For more information on Axon’s current products and services: Axon Product Catalog – Axon.com.

About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology supporting state, local, federal and international public safety agencies with technology designed to Protect Life. Complementing its mission, Axon’s growing Enterprise market focuses on protecting critical infrastructure and frontline workers across multiple industries including corporate security, hospitality, retail and healthcare. Founder-led since 1993, Axon builds products with transparency and responsibility. From TASER energy devices to today’s connected network of hardware – including cameras, drones, and robotics – cloud software, sensors, and AI-tools, the Axon ecosystem helps seamlessly protect people and places when it matters most. To ensure these technologies align with community expectations, Axon’s independent Ethics & Equity Advisory Council guides the ethical, inclusive, and accountable design of its products and services. Learn more about the EEAC and Axon’s Responsible Innovation framework at Axon Responsibility. 

Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.

Media Contact:
Kate MacKinnon
Vice President, Communications
press@axon.com

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In HelloNation, Custom Fabrication Expert Mark Coyle Explains a Common Mistake in Custom Aluminum Design

Published

12 hours ago

on

October 24, 2026

By

The article explains why smart geometry, not thicker walls, creates stronger, more efficient aluminum components.

ROCHESTER, N.Y., Oct. 24, 2026 /PRNewswire/ — What early design choice causes many custom aluminum projects to become heavier, costlier, or harder to manufacture? That question is addressed in a HelloNation article featuring insights from Custom Fabrication Expert Mark Coyle of American Custom Metals, Inc. in Rochester, New York, that outlines how misunderstanding aluminum behavior leads designers to rely on thick walls instead of stronger geometry.

The article begins by explaining that many people assume thicker walls automatically make aluminum parts stronger. It notes that aluminum does not respond to wall thickness the way steel does. Instead, its performance is shaped by how the metal flows through the extrusion die. The article states that custom aluminum design is more effective when profiles use ribs, chambers, and flanges to create stiffness without adding unnecessary weight. This guidance helps readers understand why adding material often increases cost without improving strength.

The article also highlights that thicker walls change how aluminum moves during extrusion. When heavy areas fill more slowly, the metal cools unevenly and can develop stress that only appears later. The HelloNation piece explains that well-balanced geometry keeps extrusion smooth and predictable. This consistency makes it easier to maintain dimensional accuracy across long production runs. By focusing on geometry, custom aluminum design avoids the problems that come with slow extrusion speeds and uneven cooling.

Another insight in the article centers on how ribs and internal supports influence stability. It describes how a thin wall supported by a properly placed rib often performs better than a thick wall with no reinforcement. This happens because the rib helps distribute load, improve stiffness, and guide the aluminum as it cools. The article explains that this structural approach makes custom aluminum design more efficient and gives designers more control over how the final part behaves under pressure.

The article also shows why early collaboration between designer and fabricator prevents costly changes. It states that a fabricator familiar with extrusion can catch potential issues before a die is built. Small adjustments to corners or transitions can remove weak points or improve metal flow. The article notes that this teamwork keeps the design aligned with real-world production. By working together early, both sides reduce the risk of redesigning the die after the first test run.

Machining is another area where the article explains how wall thickness affects performance. Features such as deep pockets or sharp internal angles may require slow feed rates or special tooling. When walls are thicker than needed, those areas can become difficult to machine cleanly. The article states that thoughtful custom aluminum design makes machining more predictable. Small changes, such as adding radiused edges or sizing features to match standard tools, help shorten cycle times and prevent tool wear.

Thermal behavior receives detailed attention as well. The article explains that aluminum retains heat differently depending on the mass of each section. Thicker walls hold heat longer, which increases the chance of distortion during extrusion, machining, or finishing. When a design uses geometry to create strength, the material cools more evenly. This reduces warping and helps long profiles stay aligned. The article notes that stable cooling is important for components that require a precise fit and consistent shape throughout an entire production run.

Cost is also a key topic in the article. It states that heavier profiles increase material use, extrusion time, and tooling needs. A custom aluminum design that relies on geometry instead of mass lowers material consumption and keeps the fabrication process efficient. The article explains that lighter parts are easier to handle, ship, and assemble. This saves money across multiple stages of production and supports long-term manufacturing efficiency.

The article also notes that smart custom aluminum design creates profiles that behave predictably during extrusion and machining. Smooth transitions, balanced wall dimensions, and structural features help reduce the chance of distortion or dimensional drift. These elements also lower scrap rates and support reliable performance. By using geometry instead of excess material, designers build parts that maintain strength without compromising manufacturability.

As the article concludes, it emphasizes that avoiding thick walls is one of the best ways to improve performance and lower cost. It states that the most dependable custom aluminum components come from designs that use structural features to strengthen the profile. When designers understand how aluminum behaves at each stage of extrusion and machining, they create parts that are strong, efficient, and consistent from batch to batch. This approach turns custom aluminum design into a predictable process rather than a series of uncertain adjustments.

A Common Mistake in Custom Aluminum Design features insights from Mark Coyle, Custom Fabrication Expert of Rochester, NY, in HelloNation.

About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

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