Telephone and Data Systems, Inc.

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the TDS and U.S. Cellular Fourth Quarter 2024 Operating Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. To withdraw your question, press star 1 again. I would now like to turn the conference over to Colleen Thompson, Vice President, Corporate Relations. Please go ahead.

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 in offering prepared comments are from TDS, Vicki Villacrez, Executive Vice President and Chief Financial Officer. Walter Carlson, President and Chief Executive Officer. From U.S. Cellular, L.T. Sarival, President and Chief Executive Officer. Doug Chambers, Executive Vice President, Chief Financial Officer and Treasurer. And from TDS Telecom, Chris Bothfield, Vice President of Finance and Chief Financial Officer. This call is being simultaneously webcast on the TDS and U.S. Cellular Investor Relations website. Please see the websites for slides referred to on this call, including non-GAAP reconciliations. TDS and U.S. Cellular filed their SEC forms 8K, including the press releases, and our 10Ks 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. And with that, I will now turn the call over to Vicki Villacruz.

Okay, thank you Colleen and hello everyone. This morning we'll take a quick look back at last year and also share with you our 2025 priorities and goals. 2024 was a significant year for the organization and I'm very pleased with our accomplishments. First, to position the company for long-term success, we look to optimize our portfolio to focus on where we can grow and win. as evidenced by multiple announcements related to the strategic review of alternatives at U.S. Cellular, along with the sale of One Neck IT Solutions and several small copper ILEX and cable companies at TDS Telecom. As you will hear today, both of our businesses made significant investments in 2024 to improve their competitive positions and enhance the customer experience. With the 5G mid-band deployment at U.S. Cellular, and the Fiber Program at TDS Telecom, where we have increased our footprint nearly 30% over the past three years. These investments were made with financial discipline as capital expenditures were down 24% for the full year on a consolidated level, contributing to an increase in free cash flow in 2024. Also in 2024, both businesses maintained their rigorous cost reduction programs, resulting in expanded margins and adjusted EBITDA being up 7% for the full year on a consolidated basis. We further strengthened our balance sheet at U.S. Cellular, which paid down over $200 million in debt. We were also free cash flow positive and consistently drove year-over-year improvements in our bank leverage ratios operating below three times in the second half of the year at both companies. We ended the year unlocking significant value for our shareholders, and I'm pleased with the progress we've made to position us for the future. I now want to introduce Walter Carlson, TDS Board Chair, who was recently named TDS President and CEO. Walter, it's a pleasure to have you join us this morning.