CHICAGO, Jan. 25 /PRNewswire/ -- Telephone and Data Systems, Inc.
(Amex: TDS) reported operating revenues of $597.4 million for the fourth
quarter of 2000, up 11.9% from the comparable period a year ago. Operating
cash flow increased 14.2% to $180.6 million from the fourth quarter of 1999.
Diluted earnings per share from continuing operations, excluding gains and
losses, was $.46 compared to $.16 in the fourth quarter of 1999.
Fourth Quarter Highlights
-- U.S. Cellular's net customer unit activations increased 14.8% to
171,000 and the postpay churn rate decreased to 1.8%.
-- Consolidated revenues grew 11.9% over the fourth quarter of 1999 to
$597.4 million. For the quarter, U.S. Cellular's revenues grew 12.1%
and TDS Telecom's revenues were up 11.2%.
-- Consolidated operating cash flow grew 14.2% over fourth quarter 1999.
U.S. Cellular's quarterly operating cash flow grew 13.2% and TDS
Telecom's operating cash flow grew 15.9%.
-- TDS repurchased 101,600 Common shares in the open market during the
fourth quarter for $9.1 million. For the entire year, 2,665,700 Common
shares were repurchased for $287.7 million.
-- TDS Metrocom grew its fourth quarter revenues 81% over fourth quarter
1999 results and grew its full year revenues by 121%.
-- The Federal Trade Commission granted early termination of the Hart
Scott Rodino waiting period for the TDS and Chorus Communications Group
merger. The merger is still expected to close in the second quarter of
2001.
-- During the quarter, U.S. Cellular made changes to its revenue
recognition policies by implementing SEC Staff Accounting Bulletin
(SAB) 101 (Revenue Recognition), retroactive to January 1, 2000. These
changes result in a reclassification of outbound roaming revenues to
service revenues. Before, these amounts were included as an offset to
systems operations expense. SAB 101 had no impact on TDS Telecom
operating results. (See Tables A-B)
-- TDS has restated financial information for 1993 through 1999 and the
first three quarters of 2000 as a result of a reconsideration of the
appropriate accounting treatment of the minority share of income or
loss for consolidated companies and for the timing of deferred tax
recognition for discontinued operations under FAS-109 (Accounting for
Income Taxes). The restatement affects only financial accounting
results and does not have any effect on cash, tax filings or taxes due
or subsidiary financial statements. (See Tables A-G)
LeRoy T. Carlson, Jr., President and Chief Executive Officer said: "Strong
subscriber growth at U. S. Cellular combined with above industry-average
growth at TDS Telecom and 81% revenue growth at TDS Metrocom, highlighted our
fourth quarter and resulted in a strong finish for 2000. We reported record
operating cash flow of $819 million, up 13% over the previous year.
"All U.S. Cellular associates have contributed to the company's success in
intensifying its customer focused culture over the past year. The company
offers highly attractive local rate plans, combined with national service
through its partners. Its products and services are available at numerous,
convenient distribution points, and are backed by state-of-the-art customer
service, which draws customers to its network and ensures their continuing
loyalty. The result has been a very low 1.8% churn rate for the most recent
quarter.
"At TDS Telecom, our ILEC operation grew operating cash flow 17%. Our
CLEC operation, TDS Metrocom, which offers highly competitive rates together
with outstanding customer service, added 10,600 lines in the quarter. TDS
Metrocom continued to expand into carefully selected markets in southern
Wisconsin, northern Illinois and southern Michigan."
Stock Repurchase
TDS Board of Directors authorized a two million Common share repurchase on
February 25, 2000. TDS completed the February 25 authorization on August 29
at an average price of $107.53. On August 30, TDS's Board of Directors
authorized another two million Common share repurchase, of which
101,600 shares were repurchased at an average price of $89.62 during the
fourth quarter. A total of 665,700 shares have been repurchased under the
August 30 repurchase at an average price of $109.16.
Restatement of Prior Financial Information
Management is restating TDS's consolidated financial statements for 1993
through 1999 and the three quarters ended September 30, 2000 as a result of
the reconsideration of the appropriate accounting treatment of minority share
of income or loss of consolidated companies under FAS-109 (Accounting for
Income Taxes). At the time FAS-109 was implemented in 1993, TDS concluded
that the minority share of income or loss in consolidated subsidiaries should
be treated as a temporary difference between tax and financial reporting.
Accordingly, the company adjusted income tax expense and deferred tax assets
or liabilities using that method from 1993 through the third quarter of 2000.
TDS has determined that minority interests should not be treated as
temporary differences under FAS-109 and will restate financial results for the
year 1993 through September 30, 2000. This only affects the reported results
of TDS. The cumulative effect of the restatement for the periods noted above
is to increase income tax expense and reduce net income from continuing
operations by $70.6 million. The restatement had no cumulative effect on
discontinued operations for the same period. However, the restatement reduces
income tax expense and increases the net income from discontinued operations
by $51.6 million through the date of Aerial's merger with VoiceStream, and
decreases the gain reported in conjunction with that transaction on May 4,
2000 by a corresponding amount. The restatement has no effect on cash, tax
filings or taxes due or subsidiary financial statements.
Management is also restating the deferred taxes and net income from
discontinued operations for the third quarter of 1999 and the second quarter
of 2000 to be consistent with FAS-109 (Accounting for Income Taxes) and EITF
Issue No. 93-17 (Recognition of Deferred Tax Assets for a Parent Company's
Excess Tax Basis in the Stock of a Subsidiary That Is Accounted for as a
Discontinued Operation). The TDS financial reporting basis in the stock of
Aerial Communications, Inc. (Aerial) exceeded the tax basis on the date TDS
decided to merge Aerial. A tax liability for that excess should be recognized
as of the decision date. The restatement creates a deferred tax liability of
$30 million as of the September 17, 1999 decision date and increases 1999
income tax expense and decreases net income from discontinued operations by
the same amount. The gain on the sale of discontinued operations, recognized
May 4, 2000, was increased by a corresponding amount in the restatement. The
cumulative effect of the restatement is zero and it has no effect on cash, tax
filings or taxes due or subsidiary financial statements.
The effect of this restatement on the company's financial statements for
1993 through 1999 and the first three quarters of 2000 is presented in Tables
A-G accompanying this release. As a result of these restatements,
consolidated financial statements and the reports of the independent public
accountants thereon previously reported should not be relied upon until the
company formally restates such information to reflect the data presented in
the Tables. The company will file restated financial statements, to reflect
the data presented in the tables, in amendments to its 1999 Form 10-K and
Forms 10-Q for the year 2000 with the Securities and Exchange Commission on or
before February 15, 2001.
U.S. Cellular Corporation (Amex: USM), TDS's 82.4%-owned subsidiary,
reported 14.8% customer unit growth since December 31, 1999. At December 31,
U.S. Cellular's customer units in service totaled 3,061,000. Net customer
unit activations from marketing channels totaled 171,000 during the fourth
quarter.
U.S. Cellular's service revenues increased 12.1% to $421.3 million
compared to $376.3 million for the fourth quarter of 1999. Operating cash
flow increased 13.2% to $113 million compared to $99.9 million in the fourth
quarter of 1999.
TDS Telecommunications Corporation ("TDS Telecom"), TDS's wholly-owned
subsidiary, reported an 11.2% increase in revenues and a 15.9% increase in
operating cash flow versus the same period a year ago.
TDS Telecom's ILEC revenues increased 8.3%. Access lines grew 5.2%.
Operating cash flow increased 17.4% to $70.6 million. TDS Telecom's CLEC
revenues increased to $23.3 million for the quarter with 112,100 access line
equivalents in service.
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 and projections, 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: changes in the overall economy; changes in competition in the markets in
which TDS operates; advances in telecommunications technology; changes in the
telecommunications regulatory environment; pending and future litigation;
acquisitions/divestitures of properties and or licenses; changes in customer
growth rates, penetration rates, churn rates, roaming rates and the mix of
products and services offered in our markets. Investors are encouraged to
consider these and other risks and uncertainties that are discussed in
documents filed by TDS with Securities and Exchange Commission ("SEC").
TDS is a diversified telecommunications corporation founded in 1969.
Through its strategic business units, U.S. Cellular and TDS Telecom, TDS
operates primarily by providing cellular and local telephone service. TDS
builds value for its shareholders by providing excellent communications
services in growing, closely related segments of the telecommunications
industry. The Company currently employs approximately 8,900 people and serves
approximately 3.8 million customers in 35 states.
As previously announced, TDS and its subsidiaries will hold a joint
teleconference on January 25, 2001 at 10:00 central daylight time.
Interested parties may listen to the call live over the Internet at
www.teldta.com or connect by telephone at 800/540-0559 passcode: TDS. The
conference call will also be archived on our website at www.teldta.com .
For more information about TDS and its subsidiaries, visit the web sites
at:
TDS: http://www.teldta.com
TDS Telecom: http://www.tdstelecom.com
USM: http://www.uscellular.com
TELEPHONE AND DATA SYSTEMS, INC.
SUMMARY OPERATING DATA
Quarter Ended 12/31/00 9/30/00 6/30/00
U.S. Cellular:
Total pops (a) 26,646 26,592 26,407
TDS's proportionate share 21,959 21,988 21,759
Consolidated Markets:
Pops owned (000s) 24,208 24,191 24,247
Total population (000s) 25,075 24,900 25,044
Customer units 3,061,000 2,890,000 2,807,000
Net customer adds 171,000 107,000 100,000
Market penetration 12.21% 11.61% 11.21%
Markets in operation 139 138 139
Cell sites in service 2,501 2,430 2,392
Average monthly revenue per unit
Local retail $36.00 $37.25 $37.38
Inbound roaming 7.42 9.17 9.10
Long-distance and other 4.07 4.49 4.16
Total $47.49 $50.91 $50.64
Minutes of use (MOU) (b) 176 170 156
Postpay churn rate per month 1.8% 1.8% 1.7%
Marketing cost per gross customer
add $327 $321 $335
TDS Telecom:
ILECs:
Sales and service offices 110 110 110
Access lines 601,200 598,400 594,500
Growth in ILEC access lines from
prior quarter-end:
Acquisitions --- --- 10,200
Internal growth 2,800 3,900 8,200
Average monthly revenue
per access line $76.56 $74.11 $74.88
Access line equivalents (c) 619,600 614,300 608,400
Internet service accounts 72,140 69,300 70,300
Long Distance customers (d) 40,500 18,400 N/A
Caller I.D. penetration (e) 26.8% 26.1% 25.2%
Voicemail penetration (e) 12.4% 12.2% 11.9%
CLECs:
Access line equivalents - total
CLECs (c) 112,100 98,000 87,700
TDS Metrocom 63,200 52,600 45,100
USLink 48,900 45,400 42,600
Internet service accounts 12,200 11,600 11,400
Percent of access lines on-switch:
TDS Metrocom 100.0% 100.0% 100.0%
U.S. Link 13.3% 8.9% 8.9%
Digital Subscriber Lines (DSL):
TDS Metrocom 2,261 1,637 1,211
TELEPHONE AND DATA SYSTEMS, INC.
SUMMARY OPERATING DATA
Quarter Ended 03/31/2000 12/31/99
U.S. Cellular:
Total pops (a) 26,406 26,544
TDS's proportionate share 21,467 21,415
Consolidated Markets:
Pops owned (000s) 24,209 24,209
Total population (000s) 25,044 25,044
Customer units 2,707,000 2,602,000
Net customer adds 105,000 149,000
Market penetration 10.81% 10.39%
Markets in operation 139 139
Cell sites in service 2,331 2,300
Average monthly revenue per unit
Local retail $35.40 $36.40
Inbound roaming 9.21 10.21
Long-distance and other 3.16 3.36
Total $47.77 $49.97
Minutes of use (MOU) (b) 128 112
Postpay churn rate per month 1.8% 2.0%
Marketing cost per gross customer
add $338 $353
TDS Telecom:
ILECs:
Sales and service offices 109 109
Access lines 576,100 571,700
Growth in ILEC access lines from
prior quarter-end:
Acquisitions --- ---
Internal growth 4,400 900
Average monthly revenue
per access line $73.41 $74.26
Access line equivalents (c) 588,700 583,300
Internet service accounts 68,000 63,600
Long Distance customers (d) N/A N/A
Caller I.D. penetration (e) 24.5% 23.6%
Voicemail penetration (e) 11.7% 11.5%
CLECs:
Access line equivalents - total
CLECs (c) 76,100 65,900
TDS Metrocom 37,400 30,700
USLink 38,700 35,200
Internet service accounts 10,600 9,400
Percent of access lines on-switch:
TDS Metrocom 100.0% 99.0%
U.S. Link 8.1% 3.9%
Digital Subscriber Lines (DSL):
TDS Metrocom 796 497
(a) Population equivalents ("Pops"), owned and acquirable, in thousands
(b) Average monthly local minutes of use (without roaming)
(c) Access line equivalents are derived by converting high capacity data
lines to the estimated capacity of one switched access line. Basic
rate ISDN = 2 DSOs; Primary rate ISDN = 23 DSOs; T1 = 24 DSOs; Trunk
Lines = 1
(d) TDS Telecom began offering "TDS True Talk" resale long distance to its
customers beginning on August 1, 2000, with availability phased in to
its service areas throughout August and September.
(e) Caller I.D. and Voice Mail penetration is the total residential and
business one-party customers purchasing the service divided by the
total of these lines equipped for the service.
TELEPHONE AND DATA SYSTEMS, INC.
FINANCIAL HIGHLIGHTS
Three Months Ended December 31,
(Unaudited, dollars in thousands, except per share amounts)
Increase
(Decrease)
2000 1999 Amount Percent
Operating Revenues
U.S. Cellular $438,047 $390,790 $47,257 12.1%
TDS Telecom 159,317 143,207 16,110 11.2%
597,364 533,997 63,367 11.9%
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 325,011 290,927 34,084 11.7%
TDS Telecom 91,792 84,931 6,861 8.1%
416,803 375,858 40,945 10.9%
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
U.S. Cellular 113,036 99,863 13,173 13.2%
TDS Telecom 67,525 58,276 9,249 15.9%
180,561 158,139 22,422 14.2%
Depreciation and Amortization**
U.S. Cellular 67,863 64,147 3,716 5.8%
TDS Telecom 34,512 31,332 3,180 10.1%
**includes amortization of $16,814
and $16,142, respectively 102,375 95,479 6,896 7.2%
Operating Income
U.S. Cellular 45,173 35,716 9,457 26.5%
TDS Telecom 33,013 26,944 6,069 22.5%
78,186 62,660 15,526 24.8%
Investment and Other Income
Interest and Dividend Income 5,832 4,643 1,189 25.6%
Investment Income, Net 12,323 (481) 12,804 N/M
Gain (Loss) on Cellular and Other
Investments (9,878) --- (9,878) N/M
Other (Expense), Net (6,650) (2,933) (3,717) N/M
1,627 1,229 398 32.4%
Income Before Interest and Income
Taxes 79,813 63,889 15,924 24.9%
Interest Expense 28,414 23,574 4,840 20.5%
Minority Interest in Income of
Subsidiary Trust 6,203 6,203 --- 0.0%
Income Before Income Taxes 45,196 34,112 11,084 32.5%
Income Tax Expense 14,062 19,261 (5,199) (27.0%)
Income Before Minority Interest 31,134 14,851 16,283 109.6%
Minority Share of (Income), net of
tax (9,030) (4,935) (4,095) (83.0%)
Income Before Extraordinary Item 22,104 9,916 12,188 122.9%
Extraordinary Item - loss on
extinguishment of debt, net of tax (6,099) --- (6,099) N/M
Net Income 16,005 9,916 6,089 61.4%
Preferred Dividend Requirement (119) (145) 26 N/M
Net Income Available to Common $15,886 $9,771 $6,115 62.6%
Basic Average Common Shares
Outstanding (000s) 58,768 61,614 (2,846) (4.6%)
Basic Earnings Per Share
Continuing Operations $0.37 $0.16 $0.21 131.3%
Extraordinary Item (0.10) --- (0.10) N/M
$0.27 $0.16 $0.11 68.8%
Diluted Average Common Shares
Outstanding (000s) 59,377 62,294 (2,917) (4.7%)
Diluted Earnings Per Share
Continuing Operations $0.37 $0.16 $0.21 131.3%
Extraordinary Item (0.10) --- (0.10) N/M
$0.27 $0.16 $0.11 68.8%
Diluted EPS Continuing Operations--
Excluding Gains (Losses) $0.46 $0.16 $0.30 187.5%
Diluted EPS Continuing Operations--
Gains (Losses) $(0.09) $- $(0.09) N/M
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC.
FINANCIAL HIGHLIGHTS
Year Ended December 31,
(Unaudited, dollars in thousands, except per share amounts)
Increase (Decrease)
2000 1999 Amount Percent
Operating Revenues
U.S. Cellular $1,716,640 $1,576,429 $140,211 8.9%
TDS Telecom 610,216 545,917 64,299 11.8%
2,326,856 2,122,346 204,510 9.6%
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 1,158,629 1,090,615 68,014 6.2%
TDS Telecom 349,018 308,016 41,002 13.3%
1,507,647 1,398,631 109,016 7.8%
Operating Cash Flow (Operating
Income Plus Depreciation and
Amortization)
U.S. Cellular 558,011 485,814 72,197 14.9%
TDS Telecom 261,198 237,901 23,297 9.8%
819,209 723,715 95,494 13.2%
Depreciation and
Amortization**
U.S. Cellular 265,698 229,972 35,726 15.5%
TDS Telecom 133,445 123,350 10,095 8.2%
**includes amortization of
$66,725 and $51,168,
respectively 399,143 353,322 45,821 13.0%
Operating Income
U.S. Cellular 292,313 255,842 36,471 14.3%
TDS Telecom 127,753 114,551 13,202 11.5%
420,066 370,393 49,673 13.4%
Investment and Other Income
Interest and Dividend Income 15,637 8,708 6,929 79.6%
Investment Income, Net 28,465 18,397 10,068 54.7%
Gain (Loss) on Cellular and
Other Investments 15,716 345,938 (330,222) (95.5%)
Other (Expense), Net (8,082) (11,198) 3,116 27.8%
51,736 361,845 (310,109) (85.7%)
Income Before Interest and
Income Taxes 471,802 732,238 (260,436) (35.6%)
Interest Expense 100,559 99,984 575 0.6%
Minority Interest in Income
of Subsidiary Trust 24,810 24,810 --- 0.0%
Income From Continuing
Operations Before Income
Taxes 346,433 607,444 (261,011) (43.0%)
Income Tax Expense 149,481 251,001 (101,520) (40.4%)
Income From Continuing
Operations Before Minority
Interest 196,952 356,443 (159,491) (44.7%)
Minority Share of (Income),
net of tax (51,425) (65,117) 13,692 21.0%
Income From Continuing
Operations 145,527 291,326 (145,799) (50.0%)
Discontinued Operations
Loss from operations of
Aerial, net of tax --- (111,492) 111,492 N/M
Gain on disposal of Aerial,
net of tax 2,125,787 --- 2,125,787 N/M
2,125,787 (111,492) 2,237,279 N/M
Income Before Extraordinary
Item and Cumulative Effect
of Accounting Change 2,271,314 179,834 2,091,480 N/M
Extraordinary Item - loss on
extinguishment of debt, net
of tax (30,471) --- (30,471) N/M
Cumulative effect of
accounting change (3,841) --- (3,841) N/M
Net Income 2,237,002 179,834 2,057,168 N/M
Preferred Dividend
Requirement (504) (1,147) 643 N/M
Net Income Available
to Common $2,236,498 $178,687 $2,057,811 N/M
Basic Average Common Shares
Outstanding (000s) 59,922 61,436 (1,514) (2.5%)
Basic Earnings Per Share
Continuing Operations $2.42 $4.72 $(2.30) (48.7%)
Loss from operations of
Aerial --- (1.81) 1.81 N/M
Gain on disposal of Aerial 35.47 --- 35.47 N/M
Extraordinary Item (0.51) --- (0.51) N/M
Cumulative effect of
accounting change (0.06) --- (0.06) N/M
$37.32 $2.91 $34.41 N/M
Diluted Average Common Shares
Outstanding (000s) 60,636 62,376 (1,740) (2.8%)
Diluted Earnings Per Share
Continuing Operations $2.39 $4.65 $(2.26) (48.6%)
Loss from operations of
Aerial --- (1.78) 1.78 N/M
Gain on disposal of Aerial 35.06 --- 35.06 N/M
Extraordinary Item (0.51) --- (0.51) N/M
Cumulative effect of
accounting change (0.06) --- (0.06) N/M
$36.88 $2.87 $34.01 N/M
Diluted EPS Continuing
Operations--Excluding Gains
(Losses) $2.54 $1.78 $0.76 42.7%
Diluted EPS Continuing
Operations--Gains (Losses) $(0.15) $2.87 $(3.02) N/M
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(Unaudited, dollars in thousands)
ASSETS
December 31, December 31,
2000 1999
Current Assets
Cash and cash
equivalents $99,019 $111,010
Temporary
investments 3,616 4,983
Accounts receivable
from customers and
other 337,485 317,025
Materials and
supplies, at
average cost, and
other current
assets 86,980 74,990
527,100 508,008
Investments
Intangible Assets
Cellular license
costs, net 1,167,776 1,174,964
Franchise and
other costs 203,532 177,677
Marketable equity
securities 4,121,904 843,280
Investments in
unconsolidated
entities 233,710 253,811
Notes Receivable 128,707 10,736
Other investments 13,588 18,102
5,869,217 2,478,570
Property, Plant and
Equipment, net
U.S. Cellular 1,265,347 1,206,467
TDS Telecom 920,678 889,422
2,186,025 2,095,889
Other Assets and
Deferred Charges 52,267 56,216
Net Assets of
Discontinued
Operations - 288,793
$8,634,609 $5,427,476
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, December 31,
2000 1999
Current Liabilities
Current portion of long-term debt $15,639 $14,967
Notes payable 499,000 -
Accounts payable 275,901 206,937
Advance billings and customer
deposits 61,958 43,965
Accrued interest 24,912 23,492
Accrued taxes 14,732 19,773
Accrued compensation 52,314 35,939
Other current liabilities 36,783 24,599
981,239 369,672
Deferred Liabilities
and Credits 1,805,379 511,003
Long-term Debt,
excluding current
portion 1,172,987 1,279,877
Minority Interest 431,110 509,658
Company-Obligated Mandatorily
Redeemable Preferred Securities of
Subsidiary Trust Holding Solely
Company Subordinated
Debentures 300,000 300,000
Preferred Shares 7,827 9,005
Common Stockholders' Equity
Common Shares, $.01 par value 555 554
Series A Common Shares, $.01 par
value 69 70
Capital in excess of par value 1,816,619 1,897,402
Treasury Shares (383,501) (102,975)
Accumulated other
comprehensive income (178,344) 179,071
Retained earnings 2,680,669 474,139
3,936,067 2,448,261
$8,634,609 $5,427,476
BALANCE SHEET HIGHLIGHTS
DECEMBER 31, 2000
(Unaudited, dollars in thousands)
U.S. TDS TDS Corporate
Cellular Telecom & Other
Cash and Cash Equivalents $69,956 $26,801 $2,890
Affiliated Cash Investments 54,325 412,342 ---
Temporary Cash Investments 7 3,609 ---
Notes Receivable--Affiliates --- --- 187,273
$124,288 $442,752 $190,163
License and Franchise Costs, net $1,130,802 $240,506 $---
Marketable Equity Securities 377,900 107,609 3,636,395
Investment in Unconsolidated Entities 188,859 24,619 20,232
Notes Receivable 84,566 --- 44,141
Other Investments --- 13,588 ---
$1,782,127 $386,322 $3,700,768
Property, Plant and
Equipment, net $1,265,347 $920,678 $---
Notes Payable: external $55,000 $--- $444,000
cash management --- --- 467,295
intercompany --- 187,273 ---
$55,000 $187,273 $911,295
Long-term Debt:
Current Portion $--- $14,987 $652
Non-current Portion 448,817 282,153 442,017
Total $448,817 $297,140 $442,669
Trust Originated Preferred Securities $--- $--- $300,000
Preferred Shares $--- $--- $7,827
Total Outstanding Debt and
Preferred Shares $503,817 $484,413 $1,661,791
Construction Expenditures:
Quarter Ended 12/31/00 $98,784 $55,486
Year Ended 12/31/00 $305,417 $150,602
BALANCE SHEET HIGHLIGHTS
DECEMBER 31, 2000
(Unaudited, dollars in thousands)
Intercompany TDS
Eliminations Consolidated
Cash and Cash Equivalents $(628) $99,019
Affiliated Cash Investments (466,667) ---
Temporary Cash Investments --- 3,616
Notes Receivable--Affiliates (187,273) ---
$(654,568) $102,635
License and Franchise Costs, net $--- $1,371,308
Marketable Equity Securities --- 4,121,904
Investment in Unconsolidated Entities --- 233,710
Notes Receivable --- 128,707
Other Investments --- 13,588
$--- $5,869,217
Property, Plant and
Equipment, net $--- $2,186,025
Notes Payable: external $--- $499,000
cash management (467,295) ---
intercompany (187,273) ---
$(654,568) $499,000
Long-term Debt:
Current Portion $--- $15,639
Non-current Portion --- 1,172,987
Total $--- $1,188,626
Trust Originated Preferred Securities $--- $300,000
Preferred Shares $--- $7,827
Total Outstanding Debt and
Preferred Shares $(654,568) $1,995,453
Construction Expenditures:
Quarter Ended 12/31/00 $154,270
Year Ended 12/31/00 $456,019
TDS Telecom Highlights
Three Months Ended December 31,
(Unaudited, dollars in thousands)
Increase
(Decrease)
2000 1999 Amount Percent
Local Telephone Operations
Operating Revenues
Local Service $44,115 $39,078 $5,037 12.9%
Network Access and Long-Distance 73,065 69,283 3,782 5.5%
Miscellaneous 20,556 18,846 1,710 9.1%
137,736 127,207 10,529 8.3%
Operating Expenses
Network Operations 24,690 25,150 (460) (1.8%)
Customer Operations 22,334 21,844 490 2.2%
Corporate Expenses 20,087 20,035 52 0.3%
67,111 67,029 82 0.1%
Operating Cash Flow 70,625 60,178 10,447 17.4%
Depreciation and Amortization
Depreciation 30,126 28,205 1,921 6.8%
Amortization 1,785 1,477 308 20.9%
31,911 29,682 2,229 7.5%
Operating Income 38,714 30,496 8,218 26.9%
USLink Operations
Revenues 11,590 9,941 1,649 16.6%
Expenses before Depreciation and
Amortization 11,095 10,169 926 9.1%
Operating Cash Flow 495 (228) 723 N/M
Depreciation and Amortization 621 418 203 48.6%
Operating (Loss) Income (126) (646) 520 80.5%
TDS Metrocom Operations
Revenues 11,748 6,491 5,257 81.0%
Expenses before Depreciation 15,343 8,165 7,178 87.9%
Operating Cash Flow (3,595) (1,674) (1,921) (114.8%)
Depreciation 1,980 1,232 748 60.7%
Operating (Loss) (5,575) (2,906) (2,669) (91.8%)
Intercompany Revenues (1,757) (432) (1,325) N/M
Intercompany Expenses (1,757) (432) (1,325) N/M
--- --- --- N/M
Total TDS Telecom Operating Income $33,013 $26,944 $6,069 22.5%
N/M - Percentage change not meaningful.
TDS Telecom Highlights
Year Ended December 31,
(Unaudited, dollars in thousands)
Increase
(Decrease)
2000 1999 Amount Percent
Local Telephone Operations
Operating Revenues
Local Service $168,775 $152,290 $16,485 10.8%
Network Access and Long-
Distance 285,738 269,188 16,550 6.1%
Miscellaneous 74,468 71,052 3,416 4.8%
528,981 492,530 36,451 7.4%
Operating Expenses
Network Operations 100,917 96,488 4,429 4.6%
Customer Operations 83,744 81,115 2,629 3.2%
Corporate Expenses 77,223 73,391 3,832 5.2%
261,884 250,994 10,890 4.3%
Operating Cash Flow 267,097 241,536 25,561 10.6%
Depreciation and Amortization
Depreciation 117,521 111,479 6,042 5.4%
Amortization 6,868 5,964 904 15.2%
124,389 117,443 6,946 5.9%
Operating Income 142,708 124,093 18,615 15.0%
USLink Operations
Revenues 44,548 36,988 7,560 20.4%
Expenses before Depreciation and
Amortization 42,947 35,383 7,564 21.4%
Operating Cash Flow 1,601 1,605 (4) (0.2%)
Depreciation and Amortization 2,145 1,378 767 55.7%
Operating (Loss) Income (544) 227 (771) N/M
TDS Metrocom Operations
Revenues 40,172 18,185 21,987 120.9%
Expenses before Depreciation 47,672 23,425 24,247 103.5%
Operating Cash Flow (7,500) (5,240) (2,260) (43.1%)
Depreciation 6,911 4,529 2,382 52.6%
Operating (Loss) (14,411) (9,769) (4,642) (47.5%)
Intercompany Revenues (3,485) (1,786) (1,699) N/M
Intercompany Expenses (3,485) (1,786) (1,699) N/M
--- --- --- N/M
Total TDS Telecom Operating Income $127,753 $114,551 $13,202 11.5%
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC. (Table A)
FINANCIAL HIGHLIGHTS
Restated 2000 for SAB 101, FAS 109 and Roaming Revenue Reclassification
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. 3 Mos. 6 Mos.
Ended Ended Ended
Mar. 31 June 30 June 30
Operating Revenues
U.S. Cellular $394,157 $432,995 $827,152
TDS Telecom 144,170 152,659 296,829
538,327 585,654 1,123,981
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 267,500 273,925 541,425
TDS Telecom 80,588 86,798 167,386
348,088 360,723 708,811
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
U.S. Cellular 126,657 159,070 285,727
TDS Telecom 63,582 65,861 129,443
190,239 224,931 415,170
Depreciation and Amortization
U.S. Cellular 66,008 65,125 131,133
TDS Telecom 32,720 33,408 66,128
98,728 98,533 197,261
Operating Income
U.S. Cellular 60,649 93,945 154,594
TDS Telecom 30,862 32,453 63,315
91,511 126,398 217,909
Investment and Other Income
Interest and Dividend Income 2,470 4,824 7,294
Investment Income, Net 1,659 7,551 9,210
Gain (Loss) on Cellular and Other
Investments 17,851 (50,000) (32,149)
Other (Expense), Net (2,411) (24) (2,435)
19,569 (37,649) (18,080)
Income Before Interest and Income
Taxes 111,080 88,749 199,829
Interest Expense 22,829 24,618 47,447
Minority Interest in Income of
Subsidiary Trust 6,203 6,202 12,405
Income From Continuing Operations
Before Income Taxes 82,048 57,929 139,977
Income Tax Expense 36,334 24,928 61,262
Income From Continuing Operations
Before Minority Interest 45,714 33,001 78,715
Minority Share of (Income) (10,189) (12,304) (22,493)
Income From Continuing Operations 35,525 20,697 56,222
Discontinued Operations --- 2,128,434 2,128,434
Income Before Extraordinary Item and
Cumulative Effect
of Accounting Change 35,525 2,149,131 2,184,656
Extraordinary Item - loss on
extinguishment of debt, net of tax --- (6,106) (6,106)
Cumulative effect of accounting
change (3,841) --- (3,841)
Net Income 31,684 2,143,025 2,174,709
Preferred Dividend Requirement (134) (131) (265)
Net Income Available to Common $31,550 $2,142,894 $2,174,444
Basic Average Common Shares
Outstanding (000s) 61,078 60,306 60,692
Basic Earnings Per Share
Continuing Operations $0.58 $0.34 $0.92
Discontinued Operations --- 35.29 35.07
Extraordinary Item --- (0.10) (0.10)
Cumulative effect of accounting
change (0.06) --- (0.06)
$0.52 $35.53 $35.83
Diluted Average Common Shares
Outstanding (000s) 61,837 60,820 61,407
Diluted Earnings Per Share
Continuing Operations $0.57 $0.34 $0.91
Discontinued Operations --- 34.99 34.66
Extraordinary Item --- (0.10) (0.10)
Cumulative effect of accounting
change (0.06) --- (0.06)
$0.51 $35.23 $35.41
Diluted EPS Continuing Operations--
Excluding Gains (Losses) $0.47 $0.83 $1.30
Diluted EPS Continuing Operations--
Gains (Losses) $0.10 $(0.49) $(0.39)
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC. (Table A)
FINANCIAL HIGHLIGHTS
Restated 2000 for SAB 101, FAS 109 and Roaming Revenue Reclassification
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. Ended 9 Mos. Ended
Sep. 30 Sep. 30
Operating Revenues
U.S. Cellular $451,441 $1,278,593
TDS Telecom 154,070 450,899
605,511 1,729,492
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 292,193 833,618
TDS Telecom 89,840 257,226
382,033 1,090,844
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
U.S. Cellular 159,248 444,975
TDS Telecom 64,230 193,673
223,478 638,648
Depreciation and Amortization
U.S. Cellular 66,702 197,835
TDS Telecom 32,805 98,933
99,507 296,768
Operating Income
U.S. Cellular 92,546 247,140
TDS Telecom 31,425 94,740
123,971 341,880
Investment and Other Income
Interest and Dividend Income 2,511 9,805
Investment Income, Net 6,932 16,142
Gain (Loss) on Cellular and Other
Investments 57,743 25,594
Other (Expense), Net 1,003 (1,432)
68,189 50,109
Income Before Interest and Income
Taxes 192,160 391,989
Interest Expense 24,698 72,145
Minority Interest in Income of
Subsidiary Trust 6,202 18,607
Income From Continuing Operations
Before Income Taxes 161,260 301,237
Income Tax Expense 74,157 135,419
Income From Continuing Operations
Before Minority Interest 87,103 165,818
Minority Share of (Income) (19,902) (42,395)
Income From Continuing Operations 67,201 123,423
Discontinued Operations (2,647) 2,125,787
Income Before Extraordinary Item and
Cumulative Effect
of Accounting Change 64,554 2,249,210
Extraordinary Item - loss on
extinguishment of debt, net of tax (18,266) (24,372)
Cumulative effect of accounting
change --- (3,841)
Net Income 46,288 2,220,997
Preferred Dividend Requirement (120) (385)
Net Income Available to Common $46,168 $2,220,612
Basic Average Common Shares
Outstanding (000s) 59,537 60,307
Basic Earnings Per Share
Continuing Operations $1.13 $2.04
Discontinued Operations (0.04) 35.24
Extraordinary Item (0.31) (0.40)
Cumulative effect of accounting
change --- (0.06)
$0.78 $36.82
Diluted Average Common Shares
Outstanding (000s) 60,331 61,048
Diluted Earnings Per Share
Continuing Operations $1.11 $2.01
Discontinued Operations (0.05) 34.82
Extraordinary Item (0.30) (0.40)
Cumulative effect of accounting
change --- (0.06)
$0.76 $36.37
Diluted EPS Continuing Operations--
Excluding Gains (Losses) $0.77 $2.06
Diluted EPS Continuing Operations--
Gains (Losses) $0.34 $(0.05)
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC. (Table B)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 2000 for SAB 101, FAS 109 and Roaming Revenue Reclassification
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. 3 Mos. 6 Mos.
Ended Ended Ended
Mar. 31 June 30 June 30
Reclassifications and Restatements
Operating Revenues - US Cellular
Previously Stated $360,087 $397,657 $757,744
SAB 101 (504) (1,010) (1,514)
Roaming Revenue Reclassification 34,574 36,348 70,922
Restatement $394,157 $432,995 $827,152
Operating Expenses Before
Depreciation & Amortization -
US Cellular
Previously Stated $232,926 $237,577 $470,503
Roaming Revenue Reclassification 34,574 36,348 70,922
Restatement $267,500 $273,925 $541,425
Operating Cash Flow - US Cellular
Previously Stated $127,161 $160,080 $287,241
SAB 101 (504) (1,010) (1,514)
Restatement $126,657 $159,070 $285,727
Operating Income - US Cellular
Previously Stated $61,153 $94,955 $156,108
SAB 101 (504) (1,010) (1,514)
Restatement $60,649 $93,945 $154,594
Minority Share of Income
Previously Stated $(10,245) $(12,407) $(22,652)
SAB 101 56 103 159
Restatement $(10,189) $(12,304) $(22,493)
Income Tax Expense
Previously Stated $32,956 $21,768 $54,724
SAB 101 (203) (420) (623)
FAS 109 adjustment 3,581 3,580 7,161
Restatement $36,334 $24,928 $61,262
Discontinued Operations
Previously Stated $--- $2,150,082 $2,150,082
FAS 109 adjustment --- (21,648) (21,648)
Restatement $--- $2,128,434 $2,128,434
Extraordinary Item
Previously Stated $--- $(6,106) $(6,106)
FAS 109 adjustment --- --- ---
Restatement $--- $(6,106) $(6,106)
Net Income
Previously Stated $39,351 $2,168,740 $2,208,091
SAB 101 (245) (487) (732)
FAS 109 adjustment (continuing
operations) (3,581) (3,580) (7,161)
FAS 109 adjustment (discontinued
operations) --- (21,648) (21,648)
FAS 109 adjustment (extraordinary
item) --- --- ---
Cumulative Effect (3,841) --- (3,841)
Restatement $31,684 $2,143,025 $2,174,709
TELEPHONE AND DATA SYSTEMS, INC. (Table B)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 2000 for SAB 101, FAS 109 and Roaming Revenue Reclassification
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. Ended 9 Mos. Ended
Sep. 30 Sep. 30
Reclassifications and Restatements
Operating Revenues - US Cellular
Previously Stated $414,199 $1,171,943
SAB 101 (1,982) (3,496)
Roaming Revenue Reclassification 39,224 110,146
Restatement $451,441 $1,278,593
Operating Expenses Before
Depreciation & Amortization -
US Cellular
Previously Stated $252,969 $723,472
Roaming Revenue Reclassification 39,224 110,146
Restatement $292,193 $833,618
Operating Cash Flow - US Cellular
Previously Stated $161,230 $448,471
SAB 101 (1,982) (3,496)
Restatement $159,248 $444,975
Operating Income - US Cellular
Previously Stated $94,528 $250,636
SAB 101 (1,982) (3,496)
Restatement $92,546 $247,140
Minority Share of Income
Previously Stated $(20,103) $(42,755)
SAB 101 201 360
Restatement $(19,902) $(42,395)
Income Tax Expense
Previously Stated $68,034 $122,758
SAB 101 (842) (1,465)
FAS 109 adjustment 6,965 14,126
Restatement $74,157 $135,419
Discontinued Operations
Previously Stated $(2,647) $2,147,435
FAS 109 adjustment --- (21,648)
Restatement $(2,647) $2,125,787
Extraordinary Item
Previously Stated $(20,460) $(26,566)
FAS 109 adjustment 2,194 2,194
Restatement $(18,266) $(24,372)
Net Income
Previously Stated $51,998 $2,260,089
SAB 101 (939) (1,671)
FAS 109 adjustment (continuing
operations) (6,965) (14,126)
FAS 109 adjustment (discontinued
operations) --- (21,648)
FAS 109 adjustment (extraordinary
item) 2,194 2,194
Cumulative Effect --- (3,841)
Restatement $46,288 $2,220,997
TELEPHONE AND DATA SYSTEMS, INC. (Table C)
FINANCIAL HIGHLIGHTS
Restated 1999 for FAS 109 and Roaming Revenues
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. Ended 3 Mos. Ended 6 Mos. Ended
Mar. 31 June 30 June 30
Operating Revenues
U.S. Cellular $360,400 $399,718 $760,118
TDS Telecom 128,965 136,307 265,272
489,365 536,025 1,025,390
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 256,371 270,800 527,171
TDS Telecom 71,454 74,560 146,014
327,825 345,360 673,185
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
U.S. Cellular 104,029 128,918 232,947
TDS Telecom 57,511 61,747 119,258
161,540 190,665 352,205
Depreciation and Amortization
U.S. Cellular 51,915 56,466 108,381
TDS Telecom 30,557 30,531 61,088
82,472 86,997 169,469
Operating Income
U.S. Cellular 52,114 72,452 124,566
TDS Telecom 26,954 31,216 58,170
79,068 103,668 182,736
Investment and Other Income
Interest and Dividend Income 1,702 1,645 3,347
Investment Income, Net 6,643 650 7,293
Gain (Loss) on Cellular and Other
Investments 11,551 328,341 339,892
Other (Expense), Net (2,389) (2,154) (4,543)
17,507 328,482 345,989
Income Before Interest and Income
Taxes 96,575 432,150 528,725
Interest Expense 25,563 25,677 51,240
Minority Interest in Income of
Subsidiary Trust 6,203 6,202 12,405
Income From Continuing Operations
Before Income Taxes 64,809 400,271 465,080
Income Tax Expense 26,912 159,532 186,444
Income From Continuing Operations
Before Minority Interest 37,897 240,739 278,636
Minority Share of (Income), net of
tax (6,961) (38,794) (45,755)
Income From Continuing Operations 30,936 201,945 232,881
Discontinued Operations (22,220) (33,020) (55,240)
Net Income 8,716 168,925 177,641
Preferred Dividend Requirement (350) (337) (687)
Net Income Available to Common $8,366 $168,588 $176,954
Basic Average Common Shares
Outstanding (000s) 61,279 61,399 61,339
Basic Earnings Per Share
Continuing Operations $0.50 $3.28 $3.79
Discontinued Operations (0.36) (0.53) (0.91)
$0.14 $2.75 $2.88
Diluted Average Common Shares
Outstanding (000s) 61,808 62,365 62,253
Diluted Earnings Per Share
Continuing Operations $0.50 $3.24 $3.74
Discontinued Operations (0.36) (0.53) (0.89)
$0.14 $2.71 $2.85
Diluted EPS Continuing Operations--
Excluding Gains (Losses) $0.39 $0.50 $0.88
Diluted EPS Continuing Operations--
Gains (Losses) $0.11 $2.74 $2.86
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC. (Table C)
FINANCIAL HIGHLIGHTS
Restated 1999 for FAS 109 and Roaming Revenues
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. 9 Mos. 3 Mos. 12 Mos.
Ended Ended Ended Ended
Sep. 30 Sep. 30 Dec. 31 Dec. 31
Operating Revenues
U.S. Cellular $425,521 $1,185,639 $390,790 $1,576,429
TDS Telecom 137,438 402,710 143,207 545,917
562,959 1,588,349 533,997 2,122,346
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 272,517 799,688 290,927 1,090,615
TDS Telecom 77,071 223,085 84,931 308,016
349,588 1,022,773 375,858 1,398,631
Operating Cash Flow (Operating
Income Plus Depreciation and
Amortization)
U.S. Cellular 153,004 385,951 99,863 485,814
TDS Telecom 60,367 179,625 58,276 237,901
213,371 565,576 158,139 723,715
Depreciation and Amortization
U.S. Cellular 57,444 165,825 64,147 229,972
TDS Telecom 30,930 92,018 31,332 123,350
88,374 257,843 95,479 353,322
Operating Income
U.S. Cellular 95,560 220,126 35,716 255,842
TDS Telecom 29,437 87,607 26,944 114,551
124,997 307,733 62,660 370,393
Investment and Other Income
Interest and Dividend Income 718 4,065 4,643 8,708
Investment Income, Net 11,585 18,878 (481) 18,397
Gain (Loss) on Cellular and
Other Investments 6,046 345,938 --- 345,938
Other (Expense), Net (3,722) (8,265) (2,933) (11,198)
14,627 360,616 1,229 361,845
Income Before Interest and
Income Taxes 139,624 668,349 63,889 732,238
Interest Expense 25,170 76,410 23,574 99,984
Minority Interest in Income
of Subsidiary Trust 6,202 18,607 6,203 24,810
Income From Continuing
Operations Before Income
Taxes 108,252 573,332 34,112 607,444
Income Tax Expense 45,296 231,740 19,261 251,001
Income From Continuing
Operations Before Minority
Interest 62,956 341,592 14,851 356,443
Minority Share of (Income),
net of tax (14,427) (60,182) (4,935) (65,117)
Income From Continuing
Operations 48,529 281,410 9,916 291,326
Discontinued Operations (56,252) (111,492) --- (111,492)
Net Income (7,723) 169,918 9,916 179,834
Preferred Dividend
Requirement (316) (1,003) (145) (1,147)
Net Income Available to Common $(8,039) $168,915 $9,771 $178,687
Basic Average Common Shares
Outstanding (000s) 61,451 61,376 61,614 61,436
Basic Earnings Per Share
Continuing Operations $0.78 $4.57 $0.16 $4.72
Discontinued Operations (0.91) (1.82) --- (1.81)
$(0.13) $2.75 $0.16 $2.91
Diluted Average Common Shares
Outstanding (000s) 62,419 62,308 62,294 62,376
Diluted Earnings Per Share
Continuing Operations $0.77 $4.51 $0.16 $4.65
Discontinued Operations (0.90) (1.79) --- (1.78)
$(0.13) $2.72 $0.16 $2.87
Diluted EPS Continuing
Operations--Excluding Gains
(Losses) $0.74 $1.63 $0.16 $1.78
Diluted EPS Continuing
Operations--Gains (Losses) $0.03 $2.88 $- $2.87
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC. (Table D)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 1999 for FAS 109 and Roaming Revenues
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. Ended 3 Mos. Ended 6 Mos. Ended
Mar. 31 June 30 June 30
Reclassifications and Restatements
Operating Revenues - US Cellular
Previously Stated $325,985 $360,952 $686,937
Roaming Revenue 34,415 38,766 73,181
Reclassification $360,400 $399,718 $760,118
Operating Expenses Before
Depreciation & Amortization -
US Cellular
Previously Stated $221,956 $232,034 $453,990
Roaming Revenue 34,415 38,766 73,181
Reclassification $256,371 $270,800 $527,171
Income Tax Expense
Previously Stated $24,814 $144,772 $169,586
FAS 109 adjustment 2,098 14,760 16,858
Restatement $26,912 $159,532 $186,444
Discontinued Operations
Previously Stated $(22,634) $(34,162) $(56,796)
FAS 109 adjustment 414 1,142 1,556
Restatement $(22,220) $(33,020) $(55,240)
Net Income
Previously Stated $10,400 $182,543 $192,943
FAS 109 adjustment (continuing
operations) (2,098) (14,760) (16,858)
FAS 109 adjustment (discontinued
operations) 414 1,142 1,556
Restatement $8,716 $168,925 $177,641
TELEPHONE AND DATA SYSTEMS, INC. (Table D)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 1999 for FAS 109 and Roaming Revenues
(Unaudited, dollars in thousands, except per share amounts)
3 Mos. 9 Mos. 3 Mos. 12 Mos.
Ended Ended Ended Ended
Sep. 30 Sep. 30 Dec. 31 Dec. 31
Reclassifications and
Restatements
Operating Revenues - US
Cellular
Previously Stated $373,201 $1,060,138 $357,043 $1,417,181
Roaming Revenue 52,320 125,501 33,747 159,248
Reclassification $425,521 $1,185,639 $390,790 $1,576,429
Operating Expenses Before
Depreciation & Amortization
-
US Cellular
Previously Stated $220,197 $674,187 $257,180 $931,367
Roaming Revenue 52,320 125,501 33,747 159,248
Reclassification $272,517 $799,688 $290,927 $1,090,615
Income Tax Expense
Previously Stated $40,889 $210,475 $17,701 $228,176
FAS 109 adjustment 4,407 21,265 1,560 22,825
Restatement $45,296 $231,740 $19,261 $251,001
Discontinued Operations
Previously Stated $(27,394) $(84,190) $--- $(84,190)
FAS 109 adjustment (28,858) (27,302) --- (27,302)
Restatement $(56,252) $(111,492) $--- $(111,492)
Net Income
Previously Stated $25,542 $218,485 $11,476 $229,961
FAS 109 adjustment
(continuing operations) (4,407) (21,265) (1,560) (22,825)
FAS 109 adjustment
(discontinued operations) (28,858) (27,302) --- (27,302)
Restatement $(7,723) $169,918 $9,916 $179,834
TELEPHONE AND DATA SYSTEMS, INC. (Table E)
FINANCIAL HIGHLIGHTS
Restated 1998-1993 for FAS 109 and Roaming Reclassification
(Unaudited, dollars in thousands, except per share amounts)
1998 1997 1996
Operating Revenues
U.S. Cellular $1,315,535 $993,124 $779,676
TDS Telecom 488,104 437,624 395,059
1,803,639 1,430,748 1,174,735
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 932,681 731,202 583,471
TDS Telecom 282,290 239,460 204,064
1,214,971 970,662 787,535
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
U.S. Cellular 382,854 261,922 196,205
TDS Telecom 205,814 198,164 190,995
588,668 460,086 387,200
Depreciation and Amortization
U.S. Cellular 206,779 132,379 108,839
TDS Telecom 111,402 98,021 88,346
318,181 230,400 197,185
Operating Income from Ongoing
Operations
U.S. Cellular 176,075 129,543 87,366
TDS Telecom 94,412 100,143 102,649
270,487 229,686 190,015
American Paging Operating (Loss) (11,406) (35,307) (36,626)
Total Operating Income 259,081 194,379 153,389
Investment and Other Income
Interest and Dividend Income 10,070 11,526 14,418
Investment Income, Net 29,379 76,811 53,881
Gain (Loss) on Cellular and Other
Investments 262,698 41,438 136,152
Other (Expense), Net (35,435) (8,749) 911
266,712 121,026 205,362
Income Before Interest and Income
Taxes 525,793 315,405 358,751
Interest Expense 108,371 92,010 65,343
Minority Interest in Income of
Subsidiary Trust 23,504 1,523 ---
Income From Continuing Operations
Before Income Taxes 393,918 221,872 293,408
Income Tax Expense 161,235 95,819 131,116
Income From Continuing Operations
Before Minority Interest 232,683 126,053 162,292
Minority Share of (Income) (47,461) (34,722) (31,260)
Income From Continuing Operations 185,222 91,331 131,032
Discontinued Operations (106,965) (92,320) (8,515)
Income Before Cumulative Effect of
Accounting Change 78,257 (989) 122,517
Cumulative effect of accounting
change --- --- ---
Net Income 78,257 (989) 122,517
Preferred Dividend Requirement (1,651) (1,892) (1,957)
Net Income Available to Common $76,606 $(2,881) $120,560
Basic Average Common Shares
Outstanding (000s) 60,982 60,211 60,464
Basic Earnings Per Share
Continuing Operations $3.01 $1.49 $2.13
Loss from operations of Aerial (1.75) (1.54) (0.14)
Cumulative effect of accounting
change - - -
$1.26 $(0.05) $1.99
Diluted Average Common Shares
Outstanding (000s) 61,937 60,837 61,201
Diluted Earnings Per Share
Continuing Operations $2.99 $1.48 $2.12
Loss from operations of Aerial (1.73) (1.52) (0.14)
Cumulative effect of accounting
change - - -
$1.26 $(0.04) $1.98
Diluted EPS Continuing Operations--
Excluding Gains (Losses) $0.97 $1.24 $1.17
Diluted EPS Continuing Operations--
Gains (Losses) $2.02 $0.24 $0.95
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC. (Table E)
FINANCIAL HIGHLIGHTS
Restated 1998-1993 for FAS 109 and Roaming Reclassification
(Unaudited, dollars in thousands, except per share amounts)
1995 1994 1993
Operating Revenues
U.S. Cellular $552,795 $375,472 $243,293
TDS Telecom 354,841 306,341 268,122
907,636 681,813 511,415
Operating Expenses Before
Depreciation and Amortization
U.S. Cellular 420,582 292,633 206,922
TDS Telecom 179,246 145,857 129,450
599,828 438,490 336,372
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
U.S. Cellular 132,213 82,839 36,371
TDS Telecom 175,595 160,484 138,672
307,808 243,323 175,043
Depreciation and Amortization
U.S. Cellular 89,458 65,454 45,027
TDS Telecom 77,355 68,878 59,562
166,813 134,332 104,589
Operating Income from Ongoing
Operations
U.S. Cellular 42,755 17,385 (8,656)
TDS Telecom 98,240 91,606 79,110
140,995 108,991 70,454
American Paging Operating (Loss) (8,997) (169) (721)
Total Operating Income 131,998 108,822 69,733
Investment and Other Income
Interest and Dividend Income 12,975 10,610 8,082
Investment Income, Net 39,228 26,821 16,358
Gain (Loss) on Cellular and Other
Investments 86,625 7,457 4,970
Other (Expense), Net (3,311) (1,284) (809)
135,517 43,604 28,601
Income Before Interest and Income
Taxes 267,515 152,426 98,334
Interest Expense 62,850 41,251 37,466
Minority Interest in Income of
Subsidiary Trust --- --- ---
Income From Continuing Operations
Before Income Taxes 204,665 111,175 60,868
Income Tax Expense 86,796 41,808 20,674
Income From Continuing Operations
Before Minority Interest 117,869 69,367 40,194
Minority Share of (Income) (25,896) (9,111) (475)
Income From Continuing Operations 91,973 60,256 39,719
Discontinued Operations 5,495 (525) ---
Income Before Cumulative Effect of
Accounting Change 97,468 59,731 39,719
Cumulative effect of accounting
change --- (723) ---
Net Income 97,468 59,008 39,719
Preferred Dividend Requirement (2,509) (2,459) (2,386)
Net Income Available to Common $94,959 $56,549 $37,333
Basic Average Common Shares
Outstanding (000s) 57,456 53,295 46,995
Basic Earnings Per Share
Continuing Operations $1.56 $1.08 $0.79
Loss from operations of Aerial 0.09 (0.01) -
Cumulative effect of accounting
change - (0.01) -
$1.65 $1.06 $0.79
Diluted Average Common Shares
Outstanding (000s) 58,681 54,468 47,315
Diluted Earnings Per Share
Continuing Operations $1.54 $1.07 $0.79
Loss from operations of Aerial 0.09 (0.01) -
Cumulative effect of accounting
change - (0.01) -
$1.63 $1.05 $0.79
Diluted EPS Continuing Operations--
Excluding Gains (Losses) $0.92 $0.97 $0.75
Diluted EPS Continuing Operations--
Gains (Losses) $0.62 $0.10 $0.04
N/M - Percentage change not meaningful.
TELEPHONE AND DATA SYSTEMS, INC. (Table F)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 1998-1993 for FAS 109 and Roaming Reclassification
(Unaudited, dollars in thousands, except per share amounts)
1998 1997 1996
Roaming Reclassification
Operating Revenues - US Cellular
Previously Stated $1,162,467 $876,965 $680,068
Roaming Revenue 153,068 116,159 99,608
Restatement $1,315,535 $993,124 $779,676
Operating Expenses Before
Depreciation & Amortization -
US Cellular
Previously Stated 779,613 615,043 483,863
Roaming Revenue 153,068 116,159 99,608
Reclassification $932,681 $731,202 $583,471
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
Previously Stated $382,854 $261,922 $196,205
Roaming Revenue --- --- ---
Reclassification $382,854 $261,922 $196,205
TELEPHONE AND DATA SYSTEMS, INC. (Table F)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 1998-1993 for FAS 109 and Roaming Reclassification
(Unaudited, dollars in thousands, except per share amounts)
1995 1994 1993
Roaming Reclassification
Operating Revenues - US Cellular
Previously Stated $480,316 $327,630 $210,344
Roaming Revenue 72,479 47,842 32,949
Restatement $552,795 $375,472 $243,293
Operating Expenses Before
Depreciation & Amortization -
US Cellular
Previously Stated 348,103 244,791 173,973
Roaming Revenue 72,479 47,842 32,949
Reclassification $420,582 $292,633 $206,922
Operating Cash Flow (Operating Income
Plus Depreciation and Amortization)
Previously Stated $132,213 $82,839 $36,371
Roaming Revenue --- --- ---
Reclassification $132,213 $82,839 $36,371
TELEPHONE AND DATA SYSTEMS, INC. (Table G)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 1998-1993 for FAS 109 and Roaming Reclassification
(Unaudited, dollars in thousands, except per share amounts)
1998 1997 1996
Restatements
Income From Continuing Operations
Before Income Taxes
Previously Stated $346,457 $187,150 $262,148
Reclass of Minority Share of
Income to a separate line
below Income from Continuing
Operations Before
Minority Interest 47,461 34,722 31,260
Restatement $393,918 $221,872 $293,408
Income Tax Expense
Previously Stated $145,058 $87,405 $123,544
FAS 109 adjustment 16,177 8,414 7,572
Restatement $161,235 $95,819 $131,116
Income From Continuing Operations
Before Minority Interest
Previously Stated $201,399 $99,745 $138,604
Reclass of Minority Share of
Income to a separate line
below Income from Continuing
Operations Before
Minority Interest 47,461 34,722 31,260
FAS 109 adjustment (16,177) (8,414) (7,572)
Restatement $232,683 $126,053 $162,292
Minority Share of (Income)
Previously Stated $- $- $-
Reclass of Minority Share of
Income to a separate line
below Income from Continuing
Operations Before
Minority Interest (47,461) (34,722) (31,260)
Restatement $(47,461) $(34,722) $(31,260)
Income From Continuing Operations
Previously Stated $201,399 $99,745 $138,604
FAS 109 adjustment (16,177) (8,414) (7,572)
Restatement $185,222 $91,331 $131,032
Discontinued Operations
Previously Stated $(136,991) $(109,294) $(10,465)
FAS 109 adjustment 30,026 16,974 1,950
Restatement $(106,965) $(92,320) $(8,515)
Net Income
Previously Stated $64,408 $(9,549) $128,139
FAS 109 adjustment (continuing
operations) (16,177) (8,414) (7,572)
FAS 109 adjustment (discontinued
operations) 30,026 16,974 1,950
Restatement $78,257 $(989) $122,517
TELEPHONE AND DATA SYSTEMS, INC. (Table G)
SUMMARY OF RECLASSIFICATIONS AND RESTATEMENTS
Restated 1998-1993 for FAS 109 and Roaming Reclassification
(Unaudited, dollars in thousands, except per share amounts)
1995 1994 1993
Restatements
Income From Continuing Operations
Before Income Taxes
Previously Stated $178,769 $102,064 $60,393
Reclass of Minority Share of
Income to a separate line
below Income from Continuing
Operations Before
Minority Interest 25,896 9,111 475
Restatement $204,665 $111,175 $60,868
Income Tax Expense
Previously Stated $80,286 $40,995 $26,497
FAS 109 adjustment 6,510 813 (5,823)
Restatement $86,796 $41,808 $20,674
Income From Continuing Operations
Before Minority Interest
Previously Stated $98,483 $61,069 $33,896
Reclass of Minority Share of
Income to a separate line
below Income from Continuing
Operations Before
Minority Interest 25,896 9,111 475
FAS 109 adjustment (6,510) (813) 5,823
Restatement $117,869 $69,367 $40,194
Minority Share of (Income)
Previously Stated $- $- $-
Reclass of Minority Share of
Income to a separate line
below Income from Continuing
Operations Before
Minority Interest (25,896) (9,111) (475)
Restatement $(25,896) $(9,111) $(475)
Income From Continuing Operations
Previously Stated $98,483 $61,069 $33,896
FAS 109 adjustment (6,510) (813) 5,823
Restatement $91,973 $60,256 $39,719
Discontinued Operations
Previously Stated $5,495 $(525) $---
FAS 109 adjustment --- --- ---
Restatement $5,495 $(525) $---
Net Income
Previously Stated $103,978 $59,821 $33,896
FAS 109 adjustment (continuing
operations) (6,510) (813) 5,823
FAS 109 adjustment (discontinued
operations) --- --- ---
Restatement $97,468 $59,008 $39,719
SOURCE Telephone and Data Systems, Inc.
Web site: http: //www.teldta.com
CONTACT: Mark A. Steinkrauss, Vice President, Corporate Relations, of Telephone and Data Systems, Inc., 312-592-5384, or email, mark.steinkrauss@teldta.com