Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Raymond James 38th Annual Institutional Investors Conference 2017
20 slides from Telephone And Data Systems's conference presentation, Mar 7, 2017
Slide 1: Raymond James 38th Annual Institutional Investors Conference
Raymond James 38th Annual Institutional Investors Conference March 7, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement All information set forth in this presentation, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, proje
Slide 3: Diversified Communications Company
Diversified Communications Company • TDS (NYSE:TDS) provides communications products and services primarily in rural and suburban markets, through its two principal business units: TDS Telecom U.S. Cellular (NYSE:USM) (wholly-owned) (83% owned) • 6 million customers nationwide • Controlled company w
Slide 4: Delivering Value to Shareholders
Delivering Value to Shareholders 43 years of consecutive dividend increases Annual Dividends Shares Repurchased $0.70 Per TDS Share $0.60 8 $0.50 7 In millions 6 $0.40 5 TDS USM $0.30 4 3 $0.20 2 $0.10 1 0 $0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 * Retroactively adjusted for the effec
Slide 5: U.S. Cellular
K US. Cellular
Slide 6: Who are we?
Who are we? Fifth largest wireless carrier in the U.S. 5 million customers $4 billion in revenue Serve primarily rural and suburban communities 6
Slide 7: Differentiate through Our Value Proposition
Differentiate through Our Value Proposition Provide outstanding customer service through our: • High-quality network • 4G/LTE • VoLTE deployment • Network Quality Award in North Central region • Competitive devices, plans and pricing • New/unlimited pricing plans • Equipment installment plans and sh
Slide 8: Full Year Results
Full Year Results ($ in millions) excluding discrete items (2) 2016 2015 % Change Total operating revenues $3,939 $3,939 – Operating cash flow(1) 631 617 2% Adjusted EBITDA(1) $829 $794 4% Postpaid Churn Rates 100% Smartphone Penetration 90% (% of postpaid handsets) 3.00% 77% 78% 79% Handset Churn 8
Slide 9: 2017 Strategic Priorities
2017 Strategic Priorities Protecting customer base Aggressive yet Regulatory economical Advocacy promotions and pricing Balancing Growth and Profitability Manage Drive other Capital sources of Investments revenue Drive cost reductions 9
Slide 10: TDS Telecom
G © OneNeck bendbroadband’ IT SOLUTIONS
Slide 11: Who are we?
Who are we? 1.2 million connections in 34 states Serve some of the most rural communities in U.S. IP - based services for SMB customers Hybrid cloud solutions for mid- market customers 11
Slide 12: Wireline and Cable
Wireline and Cable Both wireline and cable share the common strategy to “own the best pipe in the market.” Our goal is to grow high-margin broadband services bundles with video and voice products. Wireline TDS TV • Targeted fiber deployment with strong (Triple play bundles results reduce churn) • 98
Slide 13: Hosted and Managed Services
Hosted and Managed Services • OneNeck IT Solutions offers comprehensive range of hosted and managed services to mid-market companies looking to outsource their IT needs • Process automation and standardization to achieve efficiencies • Increasing equipment sales • Focus on increasing recurring sales
Slide 14: Full Year Results
Full Year Results ($ in millions) 2016 2015 % Change Wireline $ 698 $ 701 --- Cable 185 175 6% HMS 273 287 (5%) Total operating revenues 1,151 1,158 (1%) Adjusted EBITDA 298 306 (3%) Capital expenditures $ 173 $ 219 (21%) (1) Reflects intercompany eliminations (2) Adjusted EBITDA is a non-GAAP finan
Slide 15: 2017 Strategic Priorities
2017 strategic priorities •Increase penetration in existing fiber markets and continue to modestly deploy fiber where economically feasible Wireline •Leverage copper bonding to increase penetration of higher speed broadband customers •Increase residential and commercial broadband customer Cable conn
Slide 16: TDS
a TDS
Slide 17: Appendix
Appendix 17
Slide 18: Operating Cash Flow and Adjusted EBITDA Reconciliation
Operating Cash Flow and Adjusted EBITDA Reconciliation – 2017 Estimated, 2016 Full Year Actual Results ($ in millions) (1) (2) (3) (4) (5) – see notes at the end of this presentation
Slide 19: U.S. Cellular Discrete Items Reconciliation
U.S. Cellular Discrete Items Reconciliation Full Year-end Discrete Item Full Year-end Discrete Item Full-Year end Full Year-end Discrete Item Full Year-end 12/31/16 12/31/16 12/31/16 12/31/15 12/31/15 (in millions) Excl(s) Naming Rights Impact Excluding naming and Imputed Excluding rewards Naming Ri
Slide 20: Reconciliation notes
(1) In providing 2016 and 2015 Estimated Results, TDS has not completed the above reconciliation to net income because it does not provide guidance for income taxes. TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, the company is unable to provide such guidance