United States Cellular Corporation

My name is Mandeep, and I'll be your operator today. At this time, I'd like to welcome everyone to the TDS U.S. Cellular Third Quarter 2024 Operating Results Conference Call. All lines have been placed on me to prevent any background noise. After the speakers are immersed, there will be a question and answer session. If you'd like to ask a question during this time, simply press star 1. on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Colleen Thompson, Vice President, Corporate Relations. You may begin.

Colleen Thompson 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 Villicret, Executive Vice President and Chief Financial Officer. From U.S. Cellular, LT Thuraville, 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 website. 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. 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. Vicki?

Okay. Thank you, Colleen, and good morning, everyone. Before we begin, I do want to acknowledge the devastating impact of the recent hurricanes and the fires that swept through Rio Dozo, New Mexico. Our hearts go out to all who were affected and suffered loss. And I want to thank our teams, especially, who came together to offer support and assistance in all our affected communities when our customers and our communities needed us most. Thank you. As I turn to the results, I want to highlight that we had another quarter of execution on the priorities that we set out during the year. As LT will cover in more detail, U.S. Cellular has made nice progress on monetizing portions of the spectrum that were not included in the proposed transaction with T-Mobile. These transactions really highlight the significant value and demand for these licenses. We have looked across our enterprise, entering into several other transactions that will help to focus our resources and further optimize our footprint. First, the sale of our One Neck IT solutions closed in early September. The sale of One Neck is accretive to free cash flow. We also reached agreements on divestitures of certain non-strategic assets at TDS Telcom expected to close later this year. Turning to results, I am pleased with our third quarter performance. Both business units are focused on meeting their financial objectives. resulting in U.S. Cellular increasing its profitability outlook for adjusted EBITDA and adjusted OIBDA, and TDS Telecom reaffirming its guidance. We ended the quarter in a solid cash and liquidity position. Sequentially, each quarter, our debt to EBITDA ratios have improved throughout 2024. Both businesses are continuing to generate positive free cash flow while continuing to invest in their networks. We are pleased to see the Fed cut interest rates in mid-September as this drives modestly lower interest costs for us. We'll continue to manage our balance sheet through a combination of primarily long-dated debt maturities issued at historically low interest rates. We'll continue to maintain reasonable leverage and sufficient liquidity, all of which provides flexibility as we go into the fourth quarter and look forward to execute on our operational objectives and longer-term strategic goals. Before turning the call over, we recently announced that Michelle Berkwicki will be leaving TDS in December after 17 years with the enterprise. On behalf of the organization, I want to thank her. for her leadership and wish her well in her next endeavors. With Michelle's upcoming departure, Chris Boffield, who is currently TDS Telecom's Vice President, Financial Analysis and Strategic Planning, will be stepping into the role of Vice President of Finance and CFO at TDS Telecom. Michelle and Chris will be transitioning over the next month. I'd also like to thank all of our associates for their hard work in these dynamic times. And now, LT, I'll turn it over to you.