TELEPHONE DATA SYSTEMS INC DE
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 1, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Towers Operations
| As of September 30, | 2024 | 2023 | 2024 vs. 2023 |
|---|---|---|---|
| Owned towers | 4,407 | 4,356 | 1% |
| Number of colocations | 2,418 | 2,406 | — |
| Tower tenancy rate | 1.55 | 1.55 | — |
Number of colocations
Number of colocations increased for the period ended September 30, 2024 when compared to the same period last year due to an increase in new tenant and equipment change executions partially offset by terminations.
Financial Overview — Towers
| Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 vs. 2023 | 2024 | 2023 | 2024 vs. 2023 | |
| (Dollars in millions) | ||||||
| Third-party revenues | $26 | $25 | 1% | $77 | $75 | 2% |
| Intra-company revenues | 33 | 32 | 3% | 98 | 95 | 3% |
| Total tower revenues | 59 | 57 | 2% | 175 | 170 | 3% |
| System operations (excluding Depreciation, amortization and accretion reported below) | 20 | 18 | 10% | 58 | 55 | 4% |
| Selling, general and administrative | 8 | 9 | (14)% | 24 | 25 | (7)% |
| Depreciation, amortization and accretion | 12 | 11 | 7% | 33 | 34 | (1)% |
| (Gain) loss on asset disposals, net | — | — | N/M | 1 | — | N/M |
| Total operating expenses | 40 | 38 | 4% | 116 | 114 | 1% |
| Operating income | $19 | $19 | (1)% | $59 | $56 | 7% |
| Adjusted OIBDA (Non-GAAP)1 | $31 | $30 | 3% | $95 | $90 | 6% |
| Adjusted EBITDA (Non-GAAP)1 | $31 | $30 | 3% | $95 | $90 | 6% |
| Capital expenditures | $6 | $5 | 33% | $15 | $10 | 61% |
Key components of changes in the statement of operations line items were as follows:
Intra-company revenues
Intra-company revenues increased for the three and nine months ended September 30, 2024, primarily as a result of an increase in the intra-company rate charged by Towers to Wireless and an increase in the number of owned towers.
Upon closing of the transaction to dispose of the wireless operations and select spectrum assets to T-Mobile, UScellular expects an increase in Third-party revenues that will be recognized under the Master License Agreement that will go into effect under the Securities Purchase Agreement. However, at such time Intra-company revenues would cease, resulting in significantly lower Total tower revenues in periods following the close.
Total operating expenses
Total operating expenses increased for the three and nine months ended September 30, 2024 due primarily to increases in System operations expenses as a result of increases in cell site ground rent and maintenance expenses.
Upon closing of the transaction to dispose of the wireless operations and select spectrum assets to T-Mobile, UScellular expects expenses may be incurred to effect the separation including costs to decommission certain towers and record remaining ground lease obligations on such decommissioned towers. These factors and other uncertainties in how the ongoing tower operations will be supported in the long-term may significantly impact operating expenses recorded in periods following the close.
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