U.S. Cellular Reports Strong Growth in Customers, Revenues

In its first-quarter results, United States Cellular Corp. (Chicago, IL) showed strong growth in service revenues and operating cash flow driven by a 19% increase in customers served. Operating results included 105,000 net customer additions, a 10% increase in service revenues to $346 million and a 22% increase in operating cash flow to $127.2 million. Net income from operations totaled $35.9 million during the quarter, or $.40 per diluted share. Including gains, total net income was $47.1 million, or $.52 per diluted share.

First Quarter Highlights

• Customer units increased to 2,707,000, a 19% increase from March 31, 1999. There were no acquisitions or divestitures of customer units during the quarter.
  
• Net customer unit activations from marketing channels totaled 105,000 in the first quarter of 2000 compared to 87,000 activations during the same quarter of 1999.
  
• Service revenues increased 10% to $346 million for the first quarter of 2000 compared to $315.2 million for the first quarter of 1999.
  
• Operating cash flow increased 22% to $127.2 million, representing 37% of service revenues.
  
• Excluding after-tax gains on the sales of investments, net income increased to $35.9 million from $27.8 million in 1999, primarily due to improvements in USM's operating results. Including gains, net income increased to $47.1 million from $27.8 million in 1999.
  
• Excluding after-tax gains on the sales of investments, earnings per share-diluted increased 25% to $.40 from $.32 in 1999. Including gains, earnings per share-diluted increased to $.52 for the quarter compared to $.32 for the same period in 1999.

Edited by Ellen Jensen