Today, United States Cellular Corporation has released its 10-K report, resulting in a 17.2% drop in its shares, which are now trading at $34.55.
United States Cellular Corporation, a subsidiary of Telephone and Data Systems, Inc., provides wireless telecommunications services in the United States. The company offers wireless services, devices, and consumer electronics, serving consumer, business, and government customers. It operates in 21 states, employs approximately 4,300 associates, and owns 4,373 towers.
In the year ended December 31, 2023, United States Cellular Corporation reported:
- 4.6 million retail connections, including 4.1 million postpaid and 0.5 million prepaid connections.
- 517,000 gross additions in postpaid activity, with a 1.31% total churn rate.
- Postpaid ARPU increased by 2% to $51.01, while average revenue per account (ARPA) remained relatively flat at $130.91.
Financially, the company reported:
- A 3% decrease in service revenues to $3.044 billion.
- A 17% decrease in equipment sales revenues to $862 million.
- Operating income of $139 million, up from $69 million in the previous year.
- Net income of $58 million, up from $35 million in the previous year.
- Adjusted EBITDA of $986 million, a 3% increase from the previous year.
- Capital expenditures of $611 million, down 15% from the previous year.
For more information, read the company's full 10-K submission here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,967 | $4,022 | $4,037 | $4,122 | $4,169 | $3,955 |
| Operating Margins | 4% | 3% | 4% | 4% | 2% | 2% |
| Net Margins | 4% | 3% | 6% | 4% | 1% | 0% |
| Net Income (M) | $150 | $127 | $229 | $155 | $30 | $13 |
| Net Interest Expense (M) | $116 | $110 | $112 | $175 | $163 | $196 |
| Depreciation & Amort. (M) | $640 | $702 | $683 | $678 | $700 | $670 |
| Diluted Shares (M) | 87 | 88 | 87 | 87 | 86 | 86 |
| Earnings Per Share | $1.72 | $1.44 | $2.62 | $1.77 | $0.35 | $0.14 |
| EPS Growth | n/a | -16.28% | 81.94% | -32.44% | -80.23% | -60.0% |
| Avg. Price | $41.67 | $43.49 | $31.68 | $33.74 | $30.06 | $35.34 |
| P/E Ratio | 23.81 | 29.59 | 11.91 | 18.74 | 85.89 | 252.43 |
| Free Cash Flow (M) | $197 | $74 | $248 | $78 | $230 | $252 |
| CAPEX (M) | $512 | $650 | $989 | $724 | $602 | $647 |
| EV / EBITDA | 5.75 | 6.12 | 4.61 | 6.46 | 7.16 | 7.56 |
| Total Debt (M) | $1,624 | $1,510 | $2,491 | $2,731 | $3,200 | $2,903 |
| Net Debt / EBITDA | 1.31 | 1.5 | 1.43 | 3.04 | 3.81 | 3.62 |
| Current Ratio | 2.62 | 2.1 | 3.01 | 1.78 | 1.44 | 1.35 |
