U.S. Cellular(USM) - 2024 Q4 - Annual Results

Financial Performance - UScellular reported total operating revenues of $970 million for Q4 2024, a decrease of 3$1,000 million in Q4 2023[3] - Net income attributable to UScellular shareholders for Q4 2024 was $5 million, down from$14 million in Q4 2023, resulting in diluted earnings per share of $0.05 compared to$0.16[3] - For the full year 2024, total operating revenues were $3,770 million, a decline of 3.5$3,906 million in 2023[4] - The net loss attributable to UScellular shareholders for 2024 was $(39) million, with diluted earnings per share of$(0.46), compared to a net income of $54 million and earnings per share of$0.63 in 2023[4] - Adjusted EBITDA for the year ended December 31, 2024, was $1,018 million, an increase of 3$986 million in 2023[31] - Cash flows from operating activities for the year ended December 31, 2024, were $883 million, compared to$866 million in 2023, reflecting a slight increase[25] - Basic earnings per share attributable to UScellular shareholders for Q4 2024 were $0.05, down 68$0.17 in Q4 2023[23] - Operating income for Q4 2024 was a loss of $9 million, compared to a profit of$21 million in Q4 2023[23] - Adjusted EBITDA (Non-GAAP) fell by 16% to $137 million for the three months ended December 31, 2024, compared to$164 million in 2023[33] - Free cash flow (Non-GAAP) was negative at $(53) million for the three months ended December 31, 2024, compared to$(44) million in 2023[35] - Operating income (GAAP) for Q4 2024 was $18 million, down from$21 million in Q4 2023, with full year operating income slightly increasing to $78 million from$77 million[41] Customer Metrics - Fixed wireless customers grew by 27% year-over-year, indicating a positive trend in customer acquisition despite overall subscriber losses[8] - Postpaid and prepaid churn rates improved, with postpaid churn at 1.29% and prepaid churn at 3.70%[20] Capital Expenditures - Capital expenditures for Q4 2024 were $162 million, up from$148 million in Q4 2023, supporting ongoing network enhancements[20] - Capital expenditures for the year ended December 31, 2024, totaled $577 million, a decrease of 6$611 million in 2023[31] - Capital expenditures increased by 21% to $154 million for the three months ended December 31, 2024, compared to$127 million in 2023[33] Asset and Liability Management - Total assets as of December 31, 2024, were $10,449 million, down from$10,750 million in 2023[27] - Total current liabilities as of December 31, 2024, were $884 million, a decrease from$901 million in 2023[29] Impairment and Losses - The company reported a loss on impairment of licenses amounting to $136 million for the year ended December 31, 2024[25] - The company reported a loss on impairment of licenses amounting to$136 million for the year ended December 31, 2024[37] Shareholder Returns - UScellular repurchased 939,999 common shares for $55 million during 2024, reflecting a commitment to returning value to shareholders[13] Future Outlook - UScellular did not provide financial guidance for 2025 due to the pending transaction with T-Mobile[11] - The company is in the process of closing transactions to sell its wireless operations and select spectrum assets to T-Mobile, expected to finalize in mid-2025[9]