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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)
2013
Operating revenues ........................... $1,081,746 $ 995,130 $939,236 $ 902,724
(Gain) loss on sale of business and other exit costs, net(1) 6,931 (249,024) (1,534) (3,140)
(Gain) loss on license sales and exchanges(1) ......... — — — (255,479)
Operating income (loss)(2) ...................... 1,466 219,092 (43,207) (30,486)
Gain (loss) on investments(1) .................... — 18,527 — 29
Net income (loss)(2) ........................... 10,710 143,675 (9,601) (262)
Net income (loss) attributable to U.S. Cellular shareholders $ 4,914 $ 143,391 $ (9,859) $ 1,592
Basic weighted average shares outstanding ........... 83,838 83,845 84,005 84,181
Diluted weighted average shares outstanding(3) ........ 84,588 84,661 84,005 85,033
Basic earnings (loss) per share attributable to U.S. Cellular
shareholders .............................. $ 0.06 $ 1.71 $ (0.12) $ 0.02
Diluted earnings (loss) per share attributable to U.S.
Cellular shareholders(3) ....................... $ 0.06 $ 1.69 $ (0.12) $ 0.02
Stock price
U.S. Cellular Common Shares(4)
High .................................. $ 39.74 $ 41.33 $ 45.91 $ 48.98
Low................................... 34.69 32.25 34.22 39.27
Close .................................. $ 36.00 $ 36.69 $ 45.53 $ 41.82
Special cash dividend paid(3) .................... $ — $ 5.75 $ — $ —
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(1)(2) ........................ 85,202 84,163 48,079 (60,788)
Gain (loss) on investments ...................... — (3,728) — 10
Net income (loss)(1)(2)(5) ...................... 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(3) ....... 85,269 85,236 85,348 84,568
Basic earnings (loss) per share attributable to U.S.
Cellular shareholders ........................ $ 0.74 $ 0.62 $ 0.42 $ (0.47)
Diluted earnings (loss) per share attributable to U.S.
Cellular shareholders(3) ...................... $ 0.73 $ 0.62 $ 0.42 $ (0.47)
Stock price
U.S. Cellular Common Shares(4)
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
(1) See Note 5—Acquisitions, Divestitures and Exchanges for additional information related to sales of businesses
and spectrum licenses. See Note 7—Investments in Unconsolidated Entities for additional information on Gain
(loss) on investments in 2013.
(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 and promotional activities, which may cause
operating income to vary from quarter to quarter.
(3) On June 25, 2013, U.S. Cellular paid a special cash dividend of $5.75 per share, for an aggregate amount of
$482.3 million, to all holders of U.S. Cellular Common Shares and Series A Common Shares as of June 11,
2013. Outstanding U.S. Cellular stock options and restricted stock unit awards were equitably adjusted for the
special cash dividend. The impact of such adjustments on the earnings per share calculation was reflected in
all prior periods presented.
(4) The high, low and closing sales prices as reported by the New York Stock Exchange (‘‘NYSE’’).
(5) 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.
U.S. Cellular has not paid any cash dividends, except for a special cash dividend of $5.75 per share in
June 2013, and currently intends to retain all earnings for use in U.S. Cellular’s business.
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