United States Cellular Corporation

Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the PDS and US Cellular First 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 followed by the number one on your telephone keypad. If you would like to redraw your question, again, press the star one. 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 and offering prepared comments are from TDS, Vicky Villacrez, Executive Vice President and Chief Financial Officer. From U.S. Cellular, L.T. Theraville, President and Chief Executive Officer. Doug Chambers, Executive Vice President, Chief Financial Officer and Treasurer. 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 AK, 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. And with that, I will now turn the call over to Vicki Villicrez. Vicki?

Okay. Thank you, Colleen, and good morning, everyone. Before we talk about the results for the quarter, I want to once again reiterate that as announced on August 4th last year, we embarked on a review of strategic alternatives at US Cellular. I'm unable to comment on the process at this time except to say that it remains active and ongoing. Management of TDS and US Cellular along with both boards remain committed to a path that is in the best interest of the company and our shareholders. Given the nature of the process, we don't expect to have updates until it's concluded. Okay, now let's talk about the business unit results. I'm pleased that both business units are showing notable year-over-year improvements in adjusted EBITDA and delivering on their profitability target set at the beginning of the year. TDS Telecom is realizing the benefits of our multi-year fiber investments with both top and bottom line growth in the quarter. and U.S. reported a nice improvement in ARPU in addition to ongoing cost discipline. From a consolidated perspective, we are maintaining our focus on both OPEX and CAPEX costs while at the same time prudently allocating our capital towards critical network investments that are advancing our technologies. At TDS Telecom, we are expanding our fiber footprint, and at U.S. Cellular, our mid-band rollout remains on track. As we announced this morning, TDS entered into a $375 million unsecured debt facility and borrowed $300 million at closing. The proceeds will be used for general corporate purposes, including the advancement of TDS Telecom's fiber build program. As you will hear Michelle speak later on the call, TDS Telecom's fiber strategy is working. TDS Telecom is reporting strong growth as expected, both top and bottom line. which gives us the confidence to keep investing in the FIBER program. TDS's overall long-term weighted average cost of debt and preferred equity increases 30 basis points with this borrowing to 6.8%, which is favorable in the current interest rate environment. We will continue to manage our balance sheet through a combination of long-dated debt maturities issued at historically low interest rates. reasonable leverage and sufficient liquidity, all of which provides flexibility to execute against our current operational objectives and longer term strategic goals. I will now turn the call over to LT.