U.S. Cellular Reports Third Quarter 2017 Results

United States Cellular Corporation (NYSE:USM) reported total operating revenues of $963 million for the third quarter of 2017, versus $1,023 million for the same period one year ago. Net loss attributable to U.S. Cellular shareholders and related diluted loss per share were $299 million and $3.51, respectively, as a result of a $370 million ($309 million, net of tax) non-cash charge related to goodwill impairment recorded during the three months ended September 30, 2017.  This compares to Net income attributable to U.S. Cellular shareholders and related diluted earnings per share of $17 million and $0.20, respectively, in the same period one year ago.  Excluding this goodwill impairment charge, Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $10 million and $0.11, respectively, for the three months ended September 30, 2017. 

“I am quite pleased with the operating results for the quarter as we continued to build on the momentum of the previous quarter, growing subscribers and increasing customer loyalty while tightly managing costs,” said U.S. Cellular president/CEO Kenneth Meyers.  “We added postpaid handset subscribers and experienced another quarter of exceptionally low handset churn driven by greater adoption of our total plans and attractive promotions. Overall, we are competing effectively in the marketplace.”  

“Our subscriber results are strong evidence that customers value our total plans and love the quality of our network,” said Meyers. “We believe we have found a good balance of promotional offers to get new customers into our stores, and we treat all of our customers exceptionally well with our customer-focused service orientation.”

2017 Estimated Results
Current Previous
(Dollars in millions)
Total operating revenues (1) $3,850-$3,950 $3,800-$4,000
Adjusted OIBDA (1)(2)(3) $600-$700 $550-$650
Adjusted EBITDA (2) $740-$840 $700-$800
Capital expenditures Approx. $500 Unchanged

November 9, 2017 

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