Telephone and Data Systems, Inc.

My name is David and I'll be your conference operator today. At this time, I'd like to welcome everyone to the TDS and U.S. Cellular's second quarter 2023 operating results call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer session. If you'd like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one once again. Thank you, Colleen Thompson, Vice President of Corporate Relations. You may begin your conference.

Good morning, and thank you for joining us. We want to make you all aware of the presentation we have prepared to accompany our comments this morning, which you can find on the investor relations sections of the TDS and U.S. cellular websites. With me today and offering prepared comments are from TDS, Vicki Villacrez, Executive Vice President and Chief Financial Officer. From U.S. Cellular, LT Therabolt, President and Chief Executive Officer. Doug Tambers, Executive Vice President, Chief Financial Officer and Treasurer. Eric Jayer, Senior Vice President and Chief Marketing Officer. Austin Somerford, Chief of Strategy, Partnerships, and Towers. And from TDS Telecom, Michelle Brokwicki, Senior Vice President of Finance and Chief Financial Officer. This call is being simultaneously webcast on the TDS and U.S. Cellular Investor Relations websites. Please see the websites for slides referred to on this call, including non-GAAP reconciliations. We provide guidance for both adjusted operating income before depreciation and amortization, or OIBDA, and adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, to highlight the contributions of U.S. Cellular's wireless partnerships. TDS and U.S. Cellular filed their SEC forms 8K, including the press releases, and our 10Qs earlier this morning. As shown on slide two, the information set forth in the presentation and discussed during this call contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Please review the Safe Harbor paragraphs in our press releases and the extended version included in our SEC filings. I will now turn the call over to Vicki Villacruz. Vicki?

All right. Thank you, Colleen, and good morning, everyone. Before we get into the details for the quarter, I want to take a moment to acknowledge this morning's announcement that the board of directors of TDS and U.S. Cellular have each decided to initiate a process to explore strategic alternatives for U.S. Cellular. The comprehensive process will explore a range of strategic alternatives focused on the best interests of shareholders. Both TDS and the independent directors of U.S. SAILOR have retained financial and legal advisors in connection with the review. There is no deadline or definitive timetable set for completion of the strategic review, and there can be no assurance regarding the results or outcomes of this review. TDS and U.S. SAILOR do not intend to comment further on the strategic review process and we'll make further announcements as appropriate. We do not plan to answer any questions regarding the review process on this call today. Let me emphasize that we all remain committed to executing the strategic priorities that we set forth at the beginning of the year, which LT, Doug, and the rest of the team and Michelle will speak to next. With that, let's get into the details of the quarter. As you saw from our press release, we're halfway through the year. We continue to execute on our multi-year strategies while focusing intensely on cost containment. U.S. Cellular has begun deploying mid-band 5G spectrum, and TDS Telecom is making solid progress on its fiber program and expansion into new markets. At the end of the second quarter, TDS and U.S. Cellular combined have over $1.1 billion in available sources of liquidity, including cash, revolvers, EIP, and capacity on our repurchase agreement to help fund our businesses as needed. I also want to highlight that, as expected, U.S. Cellular paid down $150 million in debt during the second quarter and then paid down another $100 million in July. We continue to manage the balance sheet by keeping short-term maturities to a minimum in this higher interest rate environment. As a reminder, over 60% of our debt, including our preferred, are very long-dated maturities or indefinite in the case of the preferred. Briefly on guidance, U.S. Siler tightened most of its ranges, increased the midpoint of its adjusted EBITDA guidance, and then modestly reduced its service revenue guidance, reflecting an aggressive competitive environment. CDS Telecom, due to tight cost controls, increased its profitability ranges. They also reduced the midpoint of their capital expenditure guidance while still committed to its fiber service address delivery target. We have the entire organization focused on cost efficiencies and we will carefully pace our investments in order to preserve capital and navigate the current economic environment. And now I'll turn over the call to LT to update you on U.S. cellular results. LT. LT. LT.