United States Cellular Corporation

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 First Quarter 2025 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 one a second time. 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, Vicki Villacrez, Executive Vice President and Chief Financial Officer. From U.S. Cellular, LT Faribault, 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. 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 8 including the press releases and our 10Qs earlier this morning. As shown on slide 2, 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 hello, everyone. Thanks for joining us. As you will hear today, we are making progress on the 2025 priorities presented back in February, while keeping a close watch on the increased uncertainties in the broader economy and markets. We still expect a mid 2025 closing on the proposed transaction with T-Mobile at U.S. Cellular, which is subject to regulatory approval. and the organization has been making great progress on a number of activities in preparation for a successful close. First, in terms of financing, we extended our near-term bank maturities and amended our revolvers to ensure financial flexibility and liquidity going forward as we anticipate the close of the T-Mobile and U.S. cellular transactions. There is also a significant amount of separation, integration, and transition work being done to ensure a smooth transition across both U.S. Cellular and TDS. And lastly, we are also focusing on the future organization to ensure we have the appropriate capital, leverage targets, and cost structure going forward, right-sized to the remaining business. Our focus is on getting to the finish line with the various announced transactions, while repositioning the remaining business for future success. Also, as LT will discuss shortly after the proposed transaction with T-Mobile closes, and dependent on U.S. Cellular Board approval, U.S. Cellular expects to be in a position to declare a special dividend to shareholders. If that occurs, PDS would receive its pro rata share. Those funds from the first closing are expected to be used to prepay to repay substantially all of TDS's outstanding bank debt, which was approximately $1.2 billion at the end of the quarter. Currently, TDS does not plan to redeem the Series UU and Series VV preferred stock. If proceeds are received from subsequent closings, including the AT&T and Verizon transactions, TDS's priorities would be to fund and advance its current fiber program at TDS telecom, as well as evaluate the potential return to shareholders. Critical to our mission, we continue to be pleased with our overall progress in the fiber program, which has expanded our footprint over 30% in the last three years, and we see further opportunities to grow the program. Briefly on the quarter, as a reminder, first quarter results were impacted by prior year divestitures. In the first quarter of 2024, there was over $40 million in operating revenues from our One Neck business and $4 million in operating revenues from the sale of certain ILECs at TDS Telecom that did not occur in 2025. I will now turn the call over to LT.