Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Shareholder Meeting (May 2017)
19 slides from Telephone And Data Systems's shareholder meeting presentation, May 25, 2017
Slide 1: TDS Annual Meeting of Shareholders
May 25, 2017 TDS Annual Meeting of Shareholders
Slide 2: TDS Annual Meeting of Shareholders - LeRoy T. Carlson Jr., President and CEO
May 25, 2017 TDS Annual Meeting of Shareholders LeRoy T. Carlson Jr., President and CEO
Slide 3: 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 4: Our mission
Our mission To provide outstanding communications services to our customers and meet the needs of our shareholders, our people, and our communities 4
Slide 5: Diversified communications company
Diversified communications company • TDS (NYSE:TDS) provides communications services and products primarily in rural and suburban markets, through its two principal business units: U.S. Cellular (NYSE:USM) TDS Telecom (83% owned) (wholly owned) • 6 million connections nationwide • Controlled company
Slide 6: Transparent and balanced capital allocation strategy
Transparent and balanced capital allocation strategy • Invest in the business (M&A) - 75% of available resources • Return value to shareholders - 25% of available resources • 43 consecutive years of dividend increases • $250 million TDS stock repurchase program ($198.7 million remaining) Shares Repu
Slide 7: U.S. Cellular
K US. Cellular
Slide 8: U.S. Cellular building on these 2016 successes
U.S. Cellular building on these 2016 successes Full year postpaid handset churn down from 2015 Awarded “Highest Network Quality Performance in the North Central Region” by J.D. Power Secured 4G LTE roaming agreements Managing capital expenditures to the lowest percentage of revenue level in 15 years
Slide 9: Strategic priorities for 2017
Strategic priorities for 2017 U.S. Cellular strives to provide a best-in-class network experience as the foundation of every customer interaction Network experience is complemented with a targeted local focus and with service offerings that exceed customers’ expectations U.S. Cellular’s 2017 busines
Slide 10: Q1 results summary
Q1 results summary ($ 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 $206 11% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 (1) Equipment installment plan interest income is reflected
Slide 11: TDS Telecom
Po TDS Telecom (a aTDS*Company
Slide 12: 2016 accomplishments create platform for future
2016 accomplishments create platform for future Wireline • Fiber deployment essentially complete in many of our most attractive markets • Copper bonding complete in most mid-tier markets • Efforts to secure A-CAM funding successful Cable • Broadband strategy taking hold, showing early growth results
Slide 13: Strategic priorities for 2017
Strategic priorities for 2017 Wireline • Increase penetration in existing fiber markets and continue to modestly deploy fiber where economically feasible • Leverage copper bonding to increase penetration of higher speed broadband customers • Year 1 A-CAM – drive fiber deeper into network Cable Conne
Slide 14: TDS Telecom operating performance
TDS Telecom operating performance ($ 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 eliminati
Slide 15: Summary
Summary TDS companies are focused on profitable customer and revenue growth, driven by excellent networks, innovative services and products, and operational efficiency We are putting strong strategies in place at each business to compete effectively over the long term 15
Slide 16: TDS Annual Meeting of Shareholders
May 25, 2017 TDS Annual Meeting of Shareholders
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 Wireline Cable HMS Telecom TDS (1) Cellular Wireline Cable HMS Telecom TDS (1) Net income (loss) (GAAP) $28 N/A N/A N/A $1
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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