US Cellular Q3 2024: Revenue and Cash Update

TL;DR

US Cellular Q3: $2.99B revenue YTD, $1.37B cash on hand.

AI Summary

United States Cellular Corp. reported its Q3 2024 results, with total operating revenues for the nine months ending September 30, 2024, reaching $2.99 billion. The company's service revenues for the same period were $2.59 billion, while product revenues amounted to $398.9 million. As of September 30, 2024, the company had $1.37 billion in cash and cash equivalents.

Why It Matters

This filing provides insight into United States Cellular Corp.'s financial performance and liquidity position for the third quarter of 2024, which can impact investor confidence and future strategic decisions.

Risk Assessment

Risk Level: medium — The company's financial performance and cash position are key indicators of its operational health and ability to meet its obligations.

Key Numbers

• $2.99B — Total Operating Revenues (YTD) (Represents the total income generated from all business activities for the first nine months of 2024.)
• $2.59B — Service Revenues (YTD) (Indicates the revenue generated from core telecommunication services for the first nine months of 2024.)
• $398.9M — Product Revenues (YTD) (Shows the revenue derived from the sale of devices and other products for the first nine months of 2024.)
• $1.37B — Cash and Cash Equivalents (Represents the company's readily available funds as of the end of Q3 2024, indicating liquidity.)

Key Players & Entities

• United States Cellular Corp. (company) — Filer
• 2024-09-30 (date) — Reporting period end date
• $2.99 billion (dollar_amount) — Total operating revenues for the nine months ending September 30, 2024
• $2.59 billion (dollar_amount) — Service revenues for the nine months ending September 30, 2024
• $398.9 million (dollar_amount) — Product revenues for the nine months ending September 30, 2024
• $1.37 billion (dollar_amount) — Cash and cash equivalents as of September 30, 2024

FAQ

Key Financial Figures

• $1 — nge on which registered Common Shares, $1 par value USM New York Stock Exchange
• $4,400 m — n the Securities Purchase Agreement, of $4,400 million, which is payable in a combinatio
• $2,000 million — d the assumption of up to approximately $2,000 million in debt. The Securities Purchase Agreem
• $1,000 million — transaction close for total proceeds of $1,000 million. As of September 30, 2024, the book val
• $586 million — reless spectrum licenses to be sold was $586 million. The transaction is subject to regulato
• $7 million — ns and strategic alternatives review of $7 million and $28 million for the three and nine
• $28 million — c alternatives review of $7 million and $28 million for the three and nine months ended Sep
• $3 million — d September 30, 2024, respectively, and $3 million for both the three and nine months ende
• $79 million — ibutable to UScellular shareholders was $79 million and $44 million for the three and nine
• $44 million — llular shareholders was $79 million and $44 million for the three and nine months ended Sep
• $136 million — less spectrum licenses in the amount of $136 million ($102 million, net of tax impacts), whi
• $102 m — licenses in the amount of $136 million ($102 million, net of tax impacts), which was r
• $16 million — tnership) contributed pre-tax income of $16 million and $14 million for the three months en
• $14 million — buted pre-tax income of $16 million and $14 million for the three months ended September 30
• $48 million — ber 30, 2024 and 2023, respectively and $48 million and $52 million for the nine months end

Filing Documents

• usm-20240930.htm (10-Q) — 1668KB
• usm9302024ex101.htm (EX-10.1) — 17KB
• usm9302024ex311.htm (EX-31.1) — 9KB
• usm9302024ex312.htm (EX-31.2) — 10KB
• usm9302024ex321.htm (EX-32.1) — 5KB
• usm9302024ex322.htm (EX-32.2) — 5KB
• usm-20240930_g1.jpg (GRAPHIC) — 9KB
• usm-20240930_g2.jpg (GRAPHIC) — 185KB
• usm-20240930_g3.jpg (GRAPHIC) — 161KB
• usm-20240930_g4.jpg (GRAPHIC) — 32KB
• usm-20240930_g5.jpg (GRAPHIC) — 44KB
• usm-20240930_g6.jpg (GRAPHIC) — 49KB
• usm-20240930_g7.jpg (GRAPHIC) — 26KB
• usm-20240930_g8.jpg (GRAPHIC) — 31KB
• 0000821130-24-000063.txt ( ) — 8943KB
• usm-20240930.xsd (EX-101.SCH) — 35KB
• usm-20240930_cal.xml (EX-101.CAL) — 63KB
• usm-20240930_def.xml (EX-101.DEF) — 255KB
• usm-20240930_lab.xml (EX-101.LAB) — 549KB
• usm-20240930_pre.xml (EX-101.PRE) — 398KB
• usm-20240930_htm.xml (XML) — 1236KB

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 36

Controls and Procedures

Controls and Procedures 49

Legal Proceedings

Legal Proceedings 49 Unregistered Sales of Equity Securities and Use of Proceeds 50 Other Information 50 Exhibits 51 Form 10-Q Cross Reference Index 52

Signatures

Signatures 53 Table of Contents United States Cellular Corporation

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 United States Cellular Corporation's (UScellular) financial results for the three and nine months ended September 30, 2024, to the three and nine months ended September 30, 2023. It should be read in conjunction with UScellular's interim consolidated financial statements and notes included herein, and with the description of UScellular's business, its audited consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) included in UScellular's 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. During the second quarter of 2024, UScellular modified its reporting structure due to the planned disposal of its wireless operations and, as a result, disaggregated its operations into two reportable segments – Wireless and Towers. This presentation reflects how UScellular's chief operating decision maker allocates resources and evaluates operating performance following this strategic shift. Prior periods have been updated to conform to the new reportable segments. See Note 13 — Business Segment Information in the Notes to Consolidated Financial Statements for additional information. 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

View Full Filing

View this 10-Q filing on SEC EDGAR