US Cellular 2015 Annual Report Download - page 10

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11MAR201618464745
11MAR201618465639
Throughout 2015, as discussed below, TDS primarily focused on investing in the networks that are the backbone of its
commitment to provide outstanding communications services to its customers. TDS believes these investments will
strengthen its competitive position and improve operating performance. Looking ahead to 2016, TDS will look to build
shareholder value by continuing to execute on its strategies to build strong, competitive businesses providing
high-quality, data-focused products and services.
Invest in the business to improve returns and pursue initiatives that align with long-term strategies
Consistent with its strategy, TDS made significant investments in 2015 to improve the performance of its networks. U.S.
Cellular completed the rollout of the 4G LTE network giving customers faster data speeds on an even higher-quality
wireless network. U.S. Cellular also participated in Auction 97 indirectly through its limited partnership interest in
Advantage Spectrum L.P. (‘‘Advantage Spectrum’’). Advantage Spectrum was the provisional winning bidder of 124
licenses for an aggregate bid of $338.3 million.
At TDS Telecom, the wireline segment continued its targeted fiber deployment and now offers IPTV service in 27
markets. During 2015, TDS Telecom also worked to integrate cable acquisitions and continued efforts to improve
network quality and product offerings of previously acquired cable businesses. The HMS segment opened a new data
center in Denver, CO to expand its presence in the IT outsourcing market.
Return value to shareholders
Since August of 2013, TDS has invested $581.4 million, primarily through acquisition of cable companies and returned
$195.8 million to shareholders through payment of $147.0 million in regular quarterly cash dividends and $48.8 million of
stock repurchases. During 2015, TDS paid $61.2 million in regular quarterly cash dividends. TDS increased the dividend
paid to its investors by 5% in 2015 which marks the 41st consecutive year of dividend increases and in February 2016,
TDS increased its dividend per share from $0.141 to $0.148. There were no TDS and limited U.S. Cellular share
repurchases in 2015. There is no assurance that TDS will continue to increase the dividend rate or pay dividends and no
assurance that TDS or U.S. Cellular will make any significant amount of share repurchases in the future.
Shares Repurchased
Annual Dividends Per TDS Share (Shares in millions)
$0.00
1996
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
0
1
2
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5
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7
8
2007 2008 2009 2010 2011 2012 2013 2014 2015
TDS U.S. Cellular
Support growth initiatives through sound and disciplined financing strategies.
During 2015, U.S. Cellular sold $300 million in 7.25% senior notes and secured a $225 million term loan to fund its
operations, current and future spectrum purchases, growth in equipment installment plan receivables and capital
expenditures.
2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS