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United States Cellular Corporation
CONSOLIDATED QUARTERLY INFORMATION (UNAUDITED)
Quarter Ended
March 31 June 30 September 30 December 31
(Amounts in thousands, except per share amounts)
2012
Operating revenues .......................... $1,092,121 $1,104,400 $1,140,357 $1,115,206
(Gain) loss on sale of business and other exit costs,
net(1) .................................. (4,213) — 65 25,170
Operating income (loss)(1)(2) .................... 85,202 84,163 48,079 (60,788)
Gain (loss) on investment(1) .................... — (3,728) — 10
Net income (loss)(1)(2)(3) ...................... 69,012 59,248 42,140 (29,324)
Net income (loss) attributable to U.S. Cellular
shareholders .............................. $ 62,492 $ 52,685 $ 35,451 $ (39,622)
Basic weighted average shares outstanding .......... 84,570 84,707 84,737 84,568
Diluted weighted average shares outstanding ......... 85,133 85,061 85,152 84,568
Basic earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.74 $ 0.62 $ 0.42 $ (0.47)
Diluted earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.73 $ 0.62 $ 0.42 $ (0.47)
Stock price(4)
U.S. Cellular Common Shares
High .................................. $ 48.30 $ 41.15 $ 41.54 $ 40.40
Low .................................. 39.97 36.55 36.30 33.16
Close ................................. $ 40.93 $ 38.62 $ 39.13 $ 35.24
Quarter Ended
March 31 June 30 September 30 December 31
(Amounts in thousands, except per share amounts)
2011
Operating revenues .......................... $1,057,092 $1,076,182 $1,110,439 $1,099,633
Operating income(2)(5) ........................ 58,748 104,096 101,620 16,316
Gain (loss) on investment ...................... — 13,373 — (2,000)
Net income(5) .............................. 40,430 80,932 69,507 7,875
Net income attributable to U.S. Cellular shareholders .... $ 35,161 $ 74,939 $ 62,140 $ 2,801
Basic weighted average shares outstanding .......... 85,484 84,930 84,547 84,559
Diluted weighted average shares outstanding ......... 86,101 85,397 84,940 85,005
Basic earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.41 $ 0.88 $ 0.73 $ 0.03
Diluted earnings per share attributable to U.S. Cellular
shareholders .............................. $ 0.41 $ 0.88 $ 0.73 $ 0.03
Stock price(4)
U.S. Cellular Common Shares
High .................................. $ 52.10 $ 52.41 $ 49.75 $ 44.09
Low .................................. 44.21 46.25 35.58 36.84
Close ................................. $ 51.49 $ 48.42 $ 39.65 $ 43.63
U.S. Cellular has not paid any cash dividends and currently intends to retain all earnings for use in U.S. Cellular’s
business.
(1) See Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional
information related to the Divestiture Transaction.
(2) Management believes there exists a seasonality in operating expenses, which tend to be higher in the fourth
quarter than in the other quarters due to increased marketing activities, which may cause operating income to
vary from quarter to quarter.
(3) During the quarter ended December 31, 2012, U.S. Cellular revised its method of amortizing capitalized debt
issuance costs and original issue debt discounts from straight-line to the effective interest method. This change
decreased interest expense for the quarter, and resulted in corresponding increase to Net income (loss)
attributable to U.S. Cellular shareholders for the quarter of $2.2 million.
(4) The high, low and closing sales prices as reported by the New York Stock Exchange (‘‘NYSE’’).
(5) During the quarter ended December 31, 2011, U.S. Cellular recorded an immaterial adjustment to correct its
liabilities and prepaid expense related to property taxes for errors occurring primarily prior to 2009. This
adjustment reduced Selling, general and administrative expenses by $5.4 million in the quarter. U.S. Cellular
also recorded an immaterial adjustment to correct its deferred tax balances related to a difference in the tax
basis in certain partnerships for errors occurring prior to 2009. This adjustment increased Income tax expense
by $6.1 million in the quarter. U.S. Cellular also recorded other immaterial adjustments to correct errors in prior
periods which, together with the foregoing adjustments, reduced Net income attributable to U.S. Cellular
shareholders by a net of $6.4 million. The correction of such errors in the fourth quarter of 2011 did not have a
material effect on any prior periods, the full year ended December 31, 2011, or the trend in earnings.
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