Today, Telephone and Data Systems, Inc. (TDS) has released its 10-K report. TDS is a telecommunications company that operates through two segments: UScellular and TDS Telecom, offering wireless solutions, internet, television, and voice services in the United States. The company's shares have moved -24.3% on the market and are now trading at a price of $13.96.
In the annual report, TDS reported a net loss attributable to TDS common shareholders of $569 million in 2023, compared to a net loss of $7 million in 2022. The company's operating revenues decreased by 5% from $5,413 million in 2022 to $5,160 million in 2023. Operating expenses increased by 5% to $5,574 million in 2023. Additionally, TDS reported an increase in interest expense by 40% and a decrease in income tax expense by 81% in 2023 compared to 2022.
TDS paid regular quarterly cash dividends to common and preferred shareholders of $83 million and $70 million, respectively, in 2023 and increased the dividend per Common Share paid to its investors by 3%. The company also repurchased 545,990 Common Shares for $6 million at an average cost per share of $10.09 in 2023.
TDS and UScellular announced the initiation of a strategic alternatives review for UScellular in 2023, incurring third-party expenses of $13 million related to the review. TDS cannot predict the ultimate outcome of this process or estimate its potential impact on the financial statements.
For more information, read the company's full 10-K submission here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,109 | $5,176 | $5,225 | $5,329 | $5,413 | $5,205 |
| Operating Margins | 4% | 3% | 5% | 5% | 2% | 2% |
| Net Margins | 3% | 2% | 4% | 3% | 1% | 0% |
| Net Income (M) | $135 | $121 | $226 | $156 | $62 | -$20 |
| Net Interest Expense (M) | $172 | $165 | $168 | $232 | $174 | $232 |
| Depreciation & Amort. (M) | $883 | $932 | $909 | $895 | $929 | $919 |
| Diluted Shares (M) | 114 | 116 | 115 | 116 | 114 | 113 |
| Earnings Per Share | $1.17 | $1.03 | $1.93 | $1.0 | -$0.07 | -$0.78 |
| EPS Growth | n/a | -11.97% | 87.38% | -48.19% | -107.0% | -1014.29% |
| Avg. Price | $23.84 | $24.63 | $17.33 | $19.01 | $16.97 | $13.91 |
| P/E Ratio | 19.87 | 23.24 | 8.8 | 18.46 | -242.43 | -17.61 |
| Free Cash Flow (M) | $241 | $59 | $194 | -$28 | -$6 | -$96 |
| CAPEX (M) | $776 | $957 | $1,338 | $1,131 | $1,161 | $1,273 |
| EV / EBITDA | 3.83 | 4.2 | 3.42 | 4.1 | 5.08 | 5.13 |
| Total Debt (M) | $2,439 | $2,326 | $3,429 | $2,934 | $3,750 | $3,840 |
| Net Debt / EBITDA | 1.4 | 1.68 | 1.71 | 2.22 | 3.23 | 3.57 |
| Current Ratio | 2.65 | 2.0 | 2.62 | 1.73 | 1.34 | 1.27 |
