UScellular reports second quarter 2022 results

2022 Estimated Results

Previous

Current

(Dollars in millions)

Service revenues

$3,100-$3,200

Unchanged

Adjusted OIBDA¹

$750-$900

Unchanged

Adjusted EBITDA¹

$925-$1,075

Unchanged

Capital expenditures

$700-$800

Unchanged

Actual Results

2022 Estimated Results

Six Months Ended

June 30, 2022

Year Ended
December 31, 2021

(Dollars in millions)

Net income (GAAP)

N/A

$                                 74

$                               160

Add back:

Income tax expense

N/A

50

20

Income before income taxes (GAAP)

$45-$195

$                               124

$                               180

Add back:

Interest expense

160

73

175

Depreciation, amortization and accretion expense

705

342

678

EBITDA (Non-GAAP)¹

$910-$1,060

$                               539

$                           1,033

Add back or deduct:

Loss on impairment of licenses

—

3

—

(Gain) loss on asset disposals, net

15

8

23

(Gain) loss on sale of business and other exit costs, net

—

—

(2)

Adjusted EBITDA (Non-GAAP)¹

$925-$1,075

$                               550

$                           1,054

Deduct:

Equity in earnings of unconsolidated entities

170

82

179

Interest and dividend income

5

4

6

Adjusted OIBDA (Non-GAAP)¹

$750-$900

$                               464

$                               869

¹

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. UScellular does not intend to imply that any such items set forth in the reconciliation above are non-recurring, infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of UScellular's operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of UScellular's financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, and gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for June 30, 2022, can be found on UScellular's website at investors.uscellular.com.