United States Cellular Corporat (USM) 1 Nov 24 2024 Q3 Earnings call transcript
In the recent TDS and UScellular third quarter 2024 operating results conference call, executives shared insights into the companies' financial health, strategic initiatives, and challenges. The call, led by Colleen Thompson, Vice President of Corporate Relations, featured presentations from key executives, including Vicki Villacrez, Executive Vice President and Chief Financial Officer of TDS, Laurent Therivel, President and CEO of UScellular, Douglas Chambers, Executive Vice President, Chief Financial Officer, and Treasurer of TDS, and Michelle Brukwicki, Senior Vice President of Finance and Chief Financial Officer of TDS Telecom.
Strong Financial Performance and Strategic Initiatives
The call highlighted TDS and UScellular's strong financial performance, with both businesses focusing on meeting their financial objectives. TDS Telecom reaffirmed its guidance, while UScellular increased its profitability outlook for adjusted EBITDA and adjusted OIBDA. The companies also reported solid cash and liquidity positions, with improving debt-to-EBITDA ratios and positive free cash flow.
A significant focus was on strategic initiatives, including the sale of nonstrategic assets and the monetization of spectrum. TDS announced the sale of its OneNeck IT solutions and reached agreements on divestitures of certain nonstrategic assets at TDS Telecom, expected to close later this year. UScellular has made progress monetizing portions of its spectrum not included in the proposed transaction with T-Mobile, highlighting the significant value and demand for these licenses.
Navigating Challenges and Future Outlook
The call also addressed challenges, such as the impact of recent hurricanes and fires, and the ongoing economic and regulatory landscape. The companies acknowledged the challenges posed by these events but expressed optimism about their ability to recover and adapt. They also emphasized their focus on innovation, network improvements, and customer satisfaction.
Strategic Partnerships and Future Growth
The call highlighted TDS and UScellular's strategic partnerships, including the proposed transaction with T-Mobile, which is expected to close in mid-2025. The companies are confident that this transaction will provide long-term benefits for their customers and the industry, with T-Mobile committing to an additional 2,015 incremental towers for an initial term of 15 years.
Management Changes and Future Leadership
The call also marked Michelle Brukwicki's final earnings call with TDS after 17 years of service. Her departure will be followed by Chris, currently TDS Telecom's Vice President, Financial Analysis and Strategic Planning, taking over as Vice President of Finance and CFO of TDS Telecom.
Conclusion
In summary, TDS and UScellular's third quarter 2024 operating results conference call underscored the companies' strong financial performance, strategic initiatives, and ability to navigate challenges. With a focus on innovation, network improvements, and customer satisfaction, TDS and UScellular are well-positioned for future growth and success.