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11MAR201618465276
FINANCIAL OVERVIEW
Components of Operating Income (Loss)
Year Ended December 31, 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
(Dollars in thousands)
Operating revenues
Wireline ................ $ 700,903 $ 716,422 $ 726,567 $ (15,519) (2)% $ (10,145) (1)%
Cable .................. 174,966 116,855 35,883 58,111 50% 80,972 >100%
HMS .................. 286,795 258,732 185,616 28,063 11% 73,116 39%
Intra-company elimination ..... (4,621) (3,697) (1,063) (924) (25)% (2,634) >(100)
TDS Telecom operating
revenues ............. 1,158,043 1,088,312 947,003 69,731 6% 141,309 15%
Operating expenses
Wireline ................ 612,346 617,948 661,561 (5,602) (1)% (43,613) (7)%
Cable .................. 168,627 116,565 35,927 52,062 45% 80,638 >100%
HMS .................. 302,231 367,867 205,746 (65,636) (18)% 162,121 79%
Intra-company elimination ..... (4,621) (3,697) (1,063) (924) (25)% (2,634) >(100)
TDS Telecom operating
expenses ............. 1,078,583 1,098,683 902,171 (20,100) (2)% 196,512 22%
TDS Telecom operating income
(loss) .................. $ 79,460 $ (10,371) $ 44,832 $ 89,831 >100% $ (55,203) >(100)%
Adjusted EBITDA* ........... $ 306,029 $ 298,042 $ 249,474 $ 7,987 3% $ 48,568 19%
Capital expenditures .......... $ 219,065 $ 208,063 $ 164,858 $ 11,002 5% $ 43,205 26%
* Represents a non-GAAP financial measure. Refer to Supplemental Information within this MD&A for a reconciliation of this measure.
Operating Revenues
(Dollars in millions)
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2013 2014 2015
HMS
Cable
Wireline
Key components of changes in the statement of operations items were as follows:
2015-2014 Commentary
Total operating revenues
Operating revenues increased in 2015 due to $55.5 million from Cable acquisitions, offset by declines in Wireline
commercial and wholesale revenues of $19.3 million. HMS equipment sales increased $21.0 million.
20
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS