Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Shareholder Meeting (May 2009)
21 slides from Telephone And Data Systems's shareholder meeting presentation, May 21, 2009
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 21, 2009
Slide 2: LeRoy T. Carlson, Jr., President and CEO
LeRoy T. Carlson, Jr. President and CEO
Slide 3: TDS Safe Harbor Statement
TDS Safe Harbor Statement ™ Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: 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, beli
Slide 4: 2008: TDS Consolidated
2008: TDS Consolidated ™ • Solid results, despite economic and competitive pressure • Increased both wireless and wireline data revenues • Overall growth in operating revenues • Minimized exposure to credit crisis • Strong balance sheet • Investment-grade credit ratings $5.1 $4.8 $5.0 $4.4 TDS $4.0
Slide 5: 2008: U.S. Cellular
2008: U.S. Cellular® • Ended year with 6.2 million customers • 95 percent of retail customers in target postpay segment • Strong growth in data revenues, ARPU • Expanded 3G network to 23 percent of cell sites • Continued growth in smartphones and data plans $600 $512 U.S. Cellular $500 $368 Data $40
Slide 6: 2008: TDS Telecom
2008: TDS Telecom® • Made good progress on broadband initiatives • Attracted residential customers with service bundles • Introduced hosted IP solutions for commercial customers • Focused on value-oriented services and products • Continually increased broadband speeds available 250,000 218,100 TDS T
Slide 7: Q1 2009: U.S. Cellular
Q1 2009: U.S. Cellular® • Added 60,000 postpay customers • Double-digit increase in data revenues • Fourteenth-consecutive, year-over-year ARPU increase • Strong sales of BlackBerry® and Windows Mobile® smartphones • Continued expansion of 3G network • Seventh-consecutive J.D. Power call quality awa
Slide 8: Q1 2009: TDS Telecom
Q1 2009: TDS Telecom® • Growth in ILEC broadband customers and data revenues • 91 percent of ILEC access lines provisioned for broadband • In March, 50+ percent of residential customers chose bundles • Services and products for a variety of customer budgets • Value-oriented bundles include DISH Netw
Slide 9: Looking Ahead: U.S. Cellular
Looking Ahead: U.S. Cellular® • Expand 3G network to 60 percent of cell sites in 2009 • Deepen customer knowledge and strengthen relationships • Drive online sales and account management • Unify billing across all customer segments • Improve service and product development capabilities • Automate in
Slide 10: Looking Ahead: TDS Telecom
Looking Ahead: TDS Telecom® • Increase capacity and reliability with new 10G fiber network • Continue to aggressively drive broadband adoption • Bring 10MB service to majority of customers in 2009 • Expand hosted IP solutions for commercial customers • Maintain cost-efficient organizational structur
Slide 11: TDS: Excellent Prospects
TDS : Excellent Prospects ™ • U.S. Cellular® and TDS Telecom® positioned for long-term growth • 2009 Fortune 500® company • Named a “Most Trustworthy” company in Forbes.com article • Experienced management teams; excellent workforce • Committed to customer satisfaction • Thank you to our associates
Slide 12: Kenneth R. Meyers, Executive Vice President and CFO
Kenneth R. Meyers Executive Vice President and CFO
Slide 13: 2008: TDS Consolidated
2008: TDS Consolidated ™ • Repurchased 5,861,822 TDS common and special common shares 2007 2008 Customers 7,299,700 7,365,700 +5% Revenues $4,829M $5,092M
Slide 14: Q1 2009: U.S. Cellular
Q1 2009: U.S. Cellular® Q1 08 Q1 09 Service $962M $982M +2% Revenues Data $116M $157M +36% Revenues ARPU $52.24 $52.54 +1% Postpay 1.4% 1.5% Churn
Slide 15: Q1 2009: TDS Telecom
Q1 2009: TDS Telecom® Q1 08 Q1 09 Operating $206M $199M (3%) Revenues ILEC Data $21M $25M +18% Revenues ILEC DSL 155,000 188,100 +21% Customers
Slide 16: Liquidity
Liquidity (as of 03/31/09) Cash and liquid investments $ 810.0 M Available credit facilities 1,321.3 M Total: $2,131.3 M •4,000 owned towers •Los Angeles minority position
Slide 17: Stock Repurchases
Stock Repurchases 2008 $250M Authorization Used $88M ($162M remaining) as of 03/31/09 to repurchase: – 1.6 million TDS special common shares – 1.6 million TDS common shares 2007 $250M Authorization Completed October 2008 – 5,225,895 TDS special common shares
Slide 18: Investment-grade Credit Ratings
Investment-grade Credit Ratings TDS USM Moody’s Baa2 Baa2 Stable Standard & Positive BBB- BBB- Poor’s Fitch’s BBB+ BBB+ Stable
Slide 19: 2009 Guidance: U.S. Cellular
2009 Guidance: U.S. Cellular® Net retail customer additions 75,000 - 150,000 Service revenues $3.9 - 4.0 billion Operating income $275 - 350 million Depreciation, amortization, Approx. $600 million and accretion Capital expenditures Approx. $575 million
Slide 20: 2009 Guidance: TDS Telecom
2009 Guidance: TDS Telecom® (ILEC and CLEC combined) Operating revenues $780 - 820 million Operating income $100 - 130 million Depreciation, amortization, Approx. $160 million and accretion Capital expenditures Approx. $130 million
Slide 21: TDS: Strong Company
TDS™: Strong Company • High-quality, defensible businesses • Free cash flow-positive • Strong balance sheet • Repurchasing stock
Telephone and Data Systems — Shareholder Meeting (May 2009) on 6ix