Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Baird Global Consumer, Technology & Services Conference 2017
19 slides from Telephone And Data Systems's conference presentation, Jun 7, 2017
Slide 1: TDS and USM Overview
TDS and USM Overview June 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 services • and products • primarily in rural, suburban and mid-sized markets, through its two principal business units: U.S. Cellular (NYSE:USM) TDS Telecom (83% owned) (wholly-owned) • 6 million connections nationwide 3
Slide 4: Delivering Value to Shareholders
Delivering Value to Shareholders 42 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 2007200820092010201120122013201420152016 From 2007, Dividends of $528 M From 2007, Repur
Slide 5: U.S. Cellular
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Slide 6: Who are we?
Who are we? Fifth largest wireless network carrier in the U.S. 5 million connections $4 billion in revenue Serve primarily rural, suburban and mid sized communities 6
Slide 7: Differentiate through Our Value Proposition
Differentiate through Our Value Proposition Provide outstanding customer experience through our: • High-quality network • Excellent coverage • 4G/LTE • Ongoing VoLTE • deployment • Network Quality Award in North Central region • Competitive plans, devices and pricing • New/unlimited Total plans • Eq
Slide 8: 2017 Strategic Priorities
2017 Strategic Priorities Protecting customer base Aggressive yet Regulatory economical Advocacy promotions and pricing Balancing Growth and Profitability Manage Drive other Capital sources of Investments revenue Drive cost reductions 8
Slide 9: Q1'17 Results
Q1’ 17 Results ($ in millions) Q1’ 17 Q1’ 16 % Change Total operating revenues(1) $936 $969 -3% Operating cash flow(2) 194 168 15% Adjusted EBITDA(2) $229 $206 11% 3.00% 2.50% Postpaid Churn Rates 2.00% 1.50% Q1 handset churn = 1.00% 1.08% 0.50% 0.00% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 (1) Equipment inst
Slide 10: TDS Telecom
TDS Telecom | ~)OneNeck’ bendbroadband ©) inserter ITSOLUTIONS
Slide 11: Who are we?
Who are we? 1.2 million connections in 34 states Serve some of the most rural communities in U.S. and growing suburban areas IP - based services for SMB customers Hybrid cloud solutions for mid- market customers 11
Slide 12: Wireline and Cable
Wireline and Cable Both wireline and cable share the common strategy to “own the best pipe in the market.” Our goal is to grow high-margin broadband Wireline services bundles with video and voice products. • Targeted fiber deployment with strong TDS TV results (Triple play bundles • 98% of all TDS T
Slide 13: Hosted and Managed Services
Hosted and Managed Services • OneNeck • IT Solutions offers comprehensive range of hosted and managed services to mid-market companies looking to outsource their IT needs • Process automation and standardization to achieve efficiencies • Focus on increasing monthly recurring sales revenues • Lead wi
Slide 14: 2017 strategic priorities
2017 strategic priorities •Increase penetration in existing fiber markets and continue to modestly deploy fiber where economically feasible Wireline •Leverage copper bonding to increase penetration of higher speed broadband customers •Increase residential and commercial broadband customer Cable conn
Slide 15: TDS Telecom Operating Results
TDS Telecom Operating Results ($ in millions) % Q1’17 Q1’16 Change Wireline $179 $173 3% Cable 49 45 10% HMS 71 64 11% Total operating revenues (1) 299 281 6% Cash expenses (1)(2) 213 205 4% Adjusted EBITDA (3) $ 86 $ 76 13% Capital expenditures $ 33 $ 42 (22%) (1)Includes intercompany eliminations
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 Three months ended March 31, 2017 Three months ended March 31, 2016 Total Total U.S. TDS U.S. TDS ($ in millions) Cellular W ireline Cable HMS Telecom TDS (1) Cellular W ireline Cable HMS Telecom TDS (1) Net income (loss) (GAAP) $28 N/A N/A N/A
Slide 19: Reconciliation footnotes and definitions
(1)The TDS column includes U.S. Cellular, TDS Telecom and also the impacts of consolidating eliminations, corporate operations and non-reportable segments, all of which are not presented above. (2)Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) is defined
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