TDS Reports Q1 2024 Results, Net Income Up Slightly

TL;DR

<b>TDS reported a slight increase in net income for Q1 2024, driven by improved performance at TDS Telecom, despite a marginal dip in overall revenues.</b>

AI Summary

TELEPHONE & DATA SYSTEMS INC /DE/ (TDS-PV) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Total operating revenues for Q1 2024 were $414 million, a slight decrease from $414 million in Q1 2023. Net income attributable to TDS for Q1 2024 was $9 million, or $0.19 per diluted share, compared to $1 million, or $0.185 per diluted share in Q1 2023. UScellular's total operating revenues were $1,046 million for Q1 2024, down from $1,075 million in Q1 2023. TDS Telecom's total operating revenues were $375 million for Q1 2024, up from $375 million in Q1 2023.

Why It Matters

For investors and stakeholders tracking TELEPHONE & DATA SYSTEMS INC /DE/, this filing contains several important signals. The company's Q1 2024 results show a modest improvement in net income, indicating some operational efficiencies or cost management, even as top-line revenue remained flat year-over-year. While UScellular experienced a revenue decline, TDS Telecom's stable revenue suggests a potential resilience or growth in its specific market segments, which could be a positive indicator for future performance.

Risk Assessment

Risk Level: medium — TELEPHONE & DATA SYSTEMS INC /DE/ shows moderate risk based on this filing. The company's revenue has remained flat year-over-year, and its subsidiary UScellular saw a decline in operating revenues, indicating potential market pressures or competitive challenges that could impact future growth.

Analyst Insight

Monitor TDS Telecom's performance for continued stability and growth, and analyze the factors contributing to UScellular's revenue decline to assess potential recovery strategies.

Financial Highlights

revenue

414

net Income

9

eps

0.19

revenue Growth

0.0%

Revenue Breakdown

Key Numbers

• 414 — Total Operating Revenues (Q1 2024) (in millions of USD)
• 414 — Total Operating Revenues (Q1 2023) (in millions of USD)
• 9 — Net Income Attributable to TDS (Q1 2024) (in millions of USD)
• 0.19 — Diluted EPS (Q1 2024) (in USD)
• 1 — Net Income Attributable to TDS (Q1 2023) (in millions of USD)
• 0.185 — Diluted EPS (Q1 2023) (in USD)
• 1,046 — UScellular Total Operating Revenues (Q1 2024) (in millions of USD)
• 375 — TDS Telecom Total Operating Revenues (Q1 2024) (in millions of USD)

Key Players & Entities

• TELEPHONE & DATA SYSTEMS INC /DE/ (company) — Filer
• TDS (company) — Company Name
• UScellular (company) — Subsidiary
• TDS Telecom (company) — Subsidiary
• CHICAGO (location) — Business Address City
• DE (location) — State of Incorporation
• 30 NORTH LASALLE STREET (address) — Business Address Street 1
• STE 4000 (address) — Business Address Street 2

FAQ

Risk Factors

• Competition in the Telecommunications Industry [medium — market]: The telecommunications industry is highly competitive, with numerous providers offering similar services, which can impact pricing and market share.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the cost of borrowing and the company's financial flexibility.
• Network Infrastructure and Technology [medium — operational]: Maintaining and upgrading complex network infrastructure is capital-intensive and subject to technological obsolescence.

Key Dates

• 2024-03-31: End of Q1 2024 — Reporting period for the 10-Q filing
• 2024-05-03: Filing Date — Date the 10-Q was submitted to the SEC

Key Financial Figures

• $11 million — 4, TDS incurred third-party expenses of $11 million related to the strategic alternatives r
• $16 million — tnership) contributed pre-tax income of $16 million and $20 million for the three months en
• $20 million — buted pre-tax income of $16 million and $20 million for the three months ended March 31, 20
• $10 million — ee months ended March 31, 2023, include $10 million of severance and related expenses assoc
• $7 million — ertising expense, partially offset by a $7 million increase related to the strategic alter

Filing Documents

• tds-20240331.htm (10-Q) — 1606KB
• tds331202410qexhibit41.htm (EX-4.1) — 1032KB
• tds3312024ex311.htm (EX-31.1) — 9KB
• tds3312024ex312.htm (EX-31.2) — 10KB
• tds3312024ex321.htm (EX-32.1) — 5KB
• tds3312024ex322.htm (EX-32.2) — 5KB
• tds-20240331_g1.jpg (GRAPHIC) — 9KB
• tds-20240331_g10.jpg (GRAPHIC) — 49KB
• tds-20240331_g11.jpg (GRAPHIC) — 51KB
• tds-20240331_g12.jpg (GRAPHIC) — 33KB
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• tds-20240331_g14.jpg (GRAPHIC) — 38KB
• tds-20240331_g15.jpg (GRAPHIC) — 42KB
• tds-20240331_g2.jpg (GRAPHIC) — 37KB
• tds-20240331_g3.jpg (GRAPHIC) — 36KB
• tds-20240331_g4.jpg (GRAPHIC) — 185KB
• tds-20240331_g5.jpg (GRAPHIC) — 161KB
• tds-20240331_g6.jpg (GRAPHIC) — 30KB
• tds-20240331_g7.jpg (GRAPHIC) — 39KB
• tds-20240331_g8.jpg (GRAPHIC) — 18KB
• tds-20240331_g9.jpg (GRAPHIC) — 152KB
• 0001051512-24-000033.txt (&nbsp;) — 10998KB
• tds-20240331.xsd (EX-101.SCH) — 36KB
• tds-20240331_cal.xml (EX-101.CAL) — 79KB
• tds-20240331_def.xml (EX-101.DEF) — 284KB
• tds-20240331_lab.xml (EX-101.LAB) — 573KB
• tds-20240331_pre.xml (EX-101.PRE) — 444KB
• tds-20240331_htm.xml (XML) — 1171KB

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27

Financial Statements (Unaudited)

Financial Statements (Unaudited) 28 Consolidated Statement of Operations 28 Consolidated Statement of Cash Flows 29 Consolidated Balance Sheet 30 Consolidated Statement of Changes in Equity 32

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 34

Controls and Procedures

Controls and Procedures 45

Legal Proceedings

Legal Proceedings 45 Unregistered Sales of Equity Securities and Use of Proceeds 46 Other Information 46 Exhibits 47 Form 10-Q Cross Reference Index 48

Signatures

Signatures 49 Table of Contents Telephone and Data Systems, Inc.

Management's Discussion and Analysis of

Management's Discussion and Analysis of Financial Condition and Results of Operations Executive Overview The following discussion and analysis compares Telephone and Data Systems, Inc.'s (TDS) financial results for the three months ended March 31, 2024, to the three months ended March 31, 2023. It should be read in conjunction with TDS' interim consolidated financial statements and notes included herein, and with the description of TDS' business, its audited consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) included in TDS' Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2023. Certain numbers included herein are rounded to millions for ease of presentation; however, certain calculated amounts and percentages are determined using the unrounded numbers. This report contains statements that are not based on historical facts, which may be identified by words such as "believes," "anticipates," "estimates," "expects," "plans," "intends," "projects," "will" and similar expressions. These statements constitute and represent "forward looking statements" as this term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be significantly different from any future results, events or developments expressed or implied by such forward looking statements. See the disclosure under the heading Private Securities Litigation Reform Act of 1995 Safe Harbor Cautionary Statement elsewhere in this report for additional information. The accounting policies of TDS conform to accounting principles generally accepted in the United States of America (GAAP). However, TDS uses certain "non-GAAP financial measures" in the MD&A. A discussion of the reasons TDS determines these metrics to be useful and reconciliations of these

View Full Filing

View this 10-Q filing on SEC EDGAR