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UNITED STATES CELLULAR REPORTS CONTINUING STRONG GROWTH IN REVENUE AND CASH FLOW

 UNITED STATES CELLULAR REPORTS CONTINUING
 STRONG GROWTH IN REVENUE AND CASH FLOW
 CHICAGO, Aug. 5 /PRNewswire/ -- United States Cellular Corp. (AMEX: USM) reported service revenues increased 72 percent in the quarter ended June 30, 1992, driven by a 61 percent increase in customers and a 7 percent increase in average monthly revenue per customer. Operating loss before minority share improved by 73 percent from $2.8 million in the second quarter of 1991 to $731,000 in the most recent quarter. Additionally, operating cash flow increased $5.5 million to $6.4 million for the three months ending June 30, 1992. The company reported a net loss of $4.0 million, or 8 cents per share, for the quarter compared to a net loss of $6.3 million, or 18 cents per share, for the second quarter of 1991.
 UNITED STATES CELLULAR CORP.
 (Dollars in millions, unaudited)
 Three Months Ended June 30 1992 1991 Pct. Change
 Service Revenue $38.3 $22.2 72
 Operating Loss before
 Minority Share (.7) (2.8) (73)
 Operating Cash Flow 6.4 .9 637
 Net Loss $(4.0) $(6.3) (36)
 These results begin to show the success of our growth strategies," reported H. Donald Nelson, the company's president and chief executive officer. "Both customer growth and average revenue per customer show significant year-over-year growth resulting in the dramatic increase in operating cash flow and the reduction in the net loss."
 Service revenues totaled $38.3 million for the quarter ending June 30, 1992, up 72 percent from $22.2 million a year earlier. This increase resulted from both an increase in customers and average monthly revenue per customer. Customers served by the company's majority-owned and managed systems totaled 121,200 at June 30, 1992, compared to 75,500 at June 30, 1991. Service revenue per customer averaged $111 per month during the second quarter of 1992 compared to $104 in 1991.
 Operating expenses, including losses on equipment sales, increased 56 percent to $39.0 million primarily as a result of the increase in the number of systems in operation and the growth in the number of customers served. The company's results include 84 majority-owned and managed Metropolitan Statistical Areas ("MSAs") and Rural Service Areas ("RSAs") in operation at June 30, 1992, compared to 43 such markets a year earlier. New customer activations totaled 12,600 during the most recent quarter, representing a 56 percent increase over the 8,100 new activations during the second quarter of 1991.
 During the first half of 1992, service revenues increased 76 percent, totaling $67.6 million compared to $38.4 million in 1991. The revenue growth was fueled by increases in both customers and average revenue per customer. The number of customers in the company's majority-owned and managed markets grew 61 percent on a year-over-year basis. The company added 24,200 new customers in the first six months of 1992, of which 5,400 came through acquisitions. During the first half of 1991, the company added 18,200 customers, 3,900 of which were added through acquisitions. Average monthly revenue per customer increased 6 percent to $102 in 1992. Operating loss before minority share decreased 47 percent to $3.4 million while operating cash flow increased $9.7 million, totaling $9.9 million for the first six months of 1992. The company reported $14.9 million of gains from the sale and trade of certain cellular interests. As a result, the company reported net income of $4.3 million, or 8 cents per share, for the first half of 1992, compared to a net loss before cumulative effect of a change in accounting principle of $11.6 million, or 36 cents per share, in 1991.
 UNITED STATES CELLULAR CORP.
 (Dollars in millions, unaudited)
 Six months ended June 30 1992 1991 Pct. Change
 Service Revenue $67.6 $ 38.4 76
 Operating Loss before
 Minority Share (3.4) (6.4) (47)
 Operating Cash Flow 9.9 .2 N/M
 Gain on the Sale of
 Cellular Interests 14.9 .2 N/M
 Net Income (Loss)
 before Cumulative
 Effect of a Change in
 Accounting Principle 4.3 (11.6) N/M
 Net Income (Loss) $4.3 $(21.8) N/M
 "Now that the bulk of our RSA start-up program is behind us, we are starting to see the expected period to period improvements in our operating results," commented Nelson. "We are now serving 107 markets and only have six more markets to start up. Last year at this time, we were only serving 63 markets."
 USM has rapidly expanded its cellular operations during the past two years. Since March 31, 1991, USM has acquired 3.0 million additional population equivalent ("pops") in 20 markets, commenced cellular service in 56 markets, and added 138 cell sites and 57,700 cellular telephones in consolidated markets. The table below illustrates the rapid growth in USM's pops, markets, and operations since 1991.
 UNITED STATES CELLULAR CORP.
 ($ millions) 1991 1992
 Q1 Q2 Q3 Q4 Q1 Q2
 Population Equivalents
 (millions) 15.2 16.2 17.3 18.0 18.0 18.1
 Consolidated Markets --
 In Service 33 43 50 67 78 84
 Pending 40 37 38 25 17 12
 Revenue per Subscriber $ 89 $ 104 $ 104 $ 103 $ 95 $ 111
 Cell Sites in Service 113 128 145 186 242 251
 Cellular Plant in
 Service, Net $ 51.8 $ 71.2 $ 83.4 $109.3 $121.0 $130.6
 Cellular Telephone in
 Service 63,500 75,500 85,200 97,000 108,600 121,200
 Total Managed Markets --
 In Service 51 63 73 91 102 107
 Pending 41 38 33 21 11 7
 Cellular Telephones
 in Service 79,200 89,400 101,600 115,000 127,000 142,000
 Short-and-Long-Term
 Debt $145.6 $103.0 $137.8 $196.9 $252.0 $264.2
 Common and Series A
 Common Shares
 Outstanding
 (millions) 31.4 43.4 44.1 47.6 48.8 50.7
 USM also announced it had entered into an agreement to acquire an interest in Illinois RSA 1, representing 177,000 pops. The market is adjacent to three of the company's markets in Iowa and Wisconsin. "This acquisition further strengthens our Midwest cluster and should generate strong roaming revenue," Nelson reported.
 USM has financed its cellular acquisition program primarily through the issuance of its common stock. Debt financing is currently being provided by Telephone and Data Systems, Inc., the company's parent, and an equipment vendor. The table below summarizes population equivalents owned or acquirable at June 30, 1992, and common stock issuable in connection with acquisitions.
 UNITED STATES CELLULAR CORP.
 Population Equivalents at
 June 30, 1992 -- MSA RSA Total
 Owned 7,916,000 9,009,000 16,925,000
 Acquirable 113,000 1,091,000 1,204,000(A)
 Total 8,029,000 10,100,000 18,129,000
 Common and
 Series A Common Outstanding Issuable Total
 Shares 50,677,594 6,480,955(A) 57,158,549
 Gross License Acquisition
 Costs Current Pending Total
 ($ millions) $521.9 $58.4 $580.3
 Headquartered in Chicago, USM manages and invests in cellular systems throughout the United States. As of June 30, 1992, USM owned or had rights to acquire interests totaling 18.1 million pops in 75 MSAs and 104 RSAs. At that date, USM managed operational systems serving 34 MSAs and 73 RSAs.
 (A) At June 30, 1992, USM had additional commitments to issue approximately 2.8 million shares of common stock in connection with the population equivalents that were acquirable at that time. The aggregate 9.3 million shares committed for issuance in future years are scheduled to be issued as follows: approximately 1.4 million shares in 1992; 825,000 shares in 1993; and 7.1 million shares in 1994 and later years.
 UNITED STATES CELLULAR CORP.
 Financial Highlights
 (Dollars in thousands, except per share amounts, unaudited)
 Six Months Ended Increase (Decrease)
 6/30/92 6/30/91 Amount Percent
 Service Revenues $67,569 $38,384(A) $29,185 76.0
 Operating Expenses 68,393 42,209(A) 26,184 62.0
 Service Operating (Loss) (824) (3,825) 3,001 78.5
 Equipment Sales 3,923 3,110 813 26.1
 Cost of Equipment Sold 6,510 5,689 821 14.4
 Equipment Sales (Loss) (2,587) (2,579) (8) (0.3)
 Operating (Loss) Before
 Minority Share (3,411) (6,404) 2,993 46.7
 Minority Share of Operating
 (Income) (1,684) (487) (1,197) (245.8)
 Operating (Loss) (5,095) (6,891) 1,796 26.1
 Investment Income, Net of
 License Cost Amortization 5,998 2,425 3,573 147.4
 Gain on Sale of Cellular
 Interests 14,875 246 14,629 N/M
 Other Income (Expense) (268) 1,701 (1,969) (115.8)
 Interest Expense (9,466) (9,030) (436) (4.8)
 Income Tax Expense (1,786) (3) (1,783) N/M
 Net Income (Loss) Before
 Cumulative Effect of a
 Change in Accounting
 Principle 4,258 (11,552) 15,810 136.9
 Cumulative Effect of a
 Change in Accounting
 Principle -- (10,269) 10,269 N/M
 Net Income (Loss) $ 4,258 $(21,821) $ 26,079 119.5
 Weighted Average Common and
 Series A Common Shares (000s) 56,562 32,195 24,367 75.7
 Income (Loss) Per Common
 Share:
 Before Cumulative Effect of
 a Change in Accounting
 Principle $ .08 $ (.36) $ .44 122.2
 Cumulative Effect of a
 Change in Accounting
 Principle -- (.32) .32 N/M
 Net Income (Loss) $ .08 $ (.68) $ .76 111.8
 Operating Cash Flow $ 9,903 $ 206 $ 9,697 N/M
 Consolidated Net Revenue
 Subscribers 121,200 75,000 45,700 60.5
 Total Net Revenue
 Subscribers in All Managed
 Markets 142,600 89,400 53,200 59.5
 (A) Certain 1991 amounts have been restated to conform to current year presentation.
 UNITED STATES CELLULAR CORP.
 Financial Highlights
 (Dollars in thousands, except per share amounts, unaudited)
 Three Months Ended Increase
 (Decrease)
 6/30/92 6/30/91 Amount Percent
 Service Revenues $38,308 $22,232(A) $16,076 72.3
 Operating Expenses 37,683 23,401(A) 14,282 61.0
 Service Operating Income
 (Loss) 625 (1,169) 1,794 153.5
 Equipment Sales 2,428 1,770 658 37.2
 Cost of Equipment Sold 3,784 3,359 425 12.7
 Equipment Sales (Loss) (1,356) (1,589) 233 14.6
 Operating (Loss) Before
 Minority Share (731) (2,758) 2,027 73.5
 Minority Share of Operating
 (Income) (827) (343) (484) (140.8)
 Operating (Loss) (1,558) (3,101) 1,543 49.8
 Investment Income, Net of
 License Cost Amortization 2,966 1,254 1,712 136.7
 Other Income 524 534 (10) (1.9)
 Interest Expense (5,022) (4,995) (27) (0.6)
 Income Tax Expense (936) (1) (935) N/M
 Net (Loss) $ (4,026) $ (6,309) $ 2,283 36.2
 Weighted Average Common and
 Series A Common Shares (000s) 50,287 34,126 16,161 47.4
 Net (Loss) Per Common Share $ (.08) $ (.18) $ .10 55.6
 Operating Cash Flow $ 6,407 $ 869 $ 5,538 637.5
 Consolidated Net Revenue
 Subscribers 121,200 75,500 45,700 60.5
 Total Net Revenue
 Subscribers in All Managed
 Markets 142,600 89,400 53,200 59.5
 (A) Certain 1991 amounts have been restated to conform to current year presentation.
 -0- 8/5/92
 /CONTACT: Kenneth R. Myers, vice president-finance of TDS 312-399-8900/
 (USM) CO: United States Cellular Corp. ST: Illinois IN: TLS SU: ERN


LD -- NY089 -- 7336 08/05/92 18:25 EDT
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