United States Cellular Corp USM
Q2 2010 Earnings Call Transcript

Transcript Call Date 08/05/2010

Operator: Good day and welcome to the TDS and U.S. Cellular Second Quarter Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder this conference is being recorded.

It is now my pleasure to introduce your host Jane McCahon, Vice President – Corporate Relations for TDS. Thank you, Ms. McCahon. You may begin.

Jane McCahon - VP - Corporate Relations: Thank you, Christine. Good morning and thank you for joining us. With me today and offering prepared comments are Kenneth Meyers, TDS's Executive Vice President and CFO; Mary Dillon, U.S Cellular, President and CEO; Steven Campbell, U.S Cellular, Executive Vice President, Finance, CFO and Treasurer; Alan Ferber, U.S Cellular, Executive VP, Operations; and Bill Megan, TDS Telecom, Executive VP, Finance and CFO.

This call is being simultaneously webcast on the Investor Relations sections of both the TDS and U.S. Cellular websites. We believe our websites are an efficient and effective way to provide information to the investment community, and we'll continue to look for additional ways to use them.

Some information during this call and subsequent Q&A period contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Please review the Safe Harbor paragraphs in our releases and the more extended versions on our websites as well as our filings with the SEC.

Both companies plan to file their SEC Form 10-Qs later today. Earlier this morning both companies filed Forms 8-K, which include revised financial statements previously included in the Forms 10-K for 2009 and 10-Q for the first quarter of 2010, reflecting corrections for the immaterial errors discovered earlier this year. We will also post schedules with the revised quarterly numbers for you on our website in the guidance and reconciliation section shortly after the other filings are made with the SEC today. We will also be making our first XBRL filing this quarter, which will be posted to our website too.

We will be visiting the following cities over the next quarter or so. In early September, we'll be in New York and Boston, and later in September we'll be traveling to Europe. If you'd like to meet with us, please let us know and we'll try to accommodate you if at all possible. Keep in mind that TDS has an open-door policy. So, if you are in the Chicago area and would like to meet with members of the management team from U.S. Cellular, TDS Corporate, or the TDS Telecom folks in Madison, Wisconsin, the Investor Relations team will try to accommodate you, calendars permitting.

With that, I'd like to turn the call over to Ken Meyers.

Kenneth R. Meyers - EVP and CFO of Telephone and Data Systems: Thank you, Jane. Good morning. I'll make a few comments about the quarter, then turn the call over to the rest of team who will cover the operating results. We will then take questions at the end of the prepared remarks.

In the quarter TDS's operating revenues were $1.2 billion, slightly down from last year. Both business units competition remains fierce, yet we continue to make strong gains in all data categories. U.S. Cellular's profitability was adversely impacted in the quarter as revenue growth was stunted by lower voice revenues, while spending increased as expected on our enablement initiatives. We expect pressure on Voice ARPU to continue and we have lowered our revenue and operating cash flow guidance accordingly.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.