TDS FY 2007 Earnings Report — Telephone and Data Systems, Inc. Revenue & Financial Results | Market Cap Arena

Telephone and Data Systems, Inc.TDS

FY 2007 Earnings

Reported February 29, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2007	Prior Q	FY 2006	QoQ Change	YoY Change
Revenue	$4.8B	—	$4.4B	—	10.6%
Op. Income	$528M	—	$413M	—	27.9%
Gross Margin	64.9%	—	64.7%	—	0.2pp
Net Margin	8.0%	—	3.7%	—	4.3pp
EPS (Diluted)	$2.98	—	$1.27	—	134.6%
Free Cash Flow	$241M	—	$165M	—	46.6%

Revenue Flow

Item	Amount
REVENUE	$4.8B
Cost of Revenue	$1.7B
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$1.8B
Other Expenses	$807M
Operating Expenses	$2.6B
Cost & Expenses	$4.3B
OPERATING INCOME	$528M
Interest Income	$71M
Interest Expense	$80M
Other Income/Expenses	$158M
INCOME BEFORE TAX	$685M
Income Tax Expense	$269M
Net Income from Continuing Ops	$416M
Net Income from Discontinued Ops	$0
Other Adjustments	$43M
NET INCOME	$386M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$386M
D&A	$752M
EBIT	$894M
EBITDA	$1.6B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$4.8B
Cost of Revenue	$1.7B
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$1.8B
Other Expenses	$807M
Operating Expenses	$2.6B
Cost & Expenses	$4.3B
OPERATING INCOME	$528M
Interest Income	$71M
Interest Expense	$80M
Other Income/Expenses	$158M
INCOME BEFORE TAX	$685M
Income Tax Expense	$269M
Net Income from Continuing Ops	$416M
Net Income from Discontinued Ops	$0
Other Adjustments	$43M
NET INCOME	$386M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$386M
D&A	$752M
EBIT	$894M
EBITDA	$1.6B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$386M
Depreciation & Amortization	$752M
Stock-Based Compensation	$0
Deferred Income Tax	-$283M
Other Non-Cash Items	$100M
Change in Working Capital	-$9M
OPERATING CASH FLOW	$941M
Capital Expenditure	-$700M
Acquisitions (Net)	-$19M
Purchases of Investments	$0
Sales/Maturities of Investments	$92M
Other Investing Activities	-$804.0K
NET CASH FROM INVESTING	-$628M
Net Debt Issuance	-$36M
Common Stock Repurchased	-$215M
Common Dividends Paid	-$46M
Other Financing Activities	$30M
NET CASH FROM FINANCING	-$152M
FREE CASH FLOW	$241M
Net Change in Cash	$161M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.2B
Short-Term Investments	$1.9B
Net Receivables	$530M
Inventory	$116M
Other Current Assets	$60M
TOTAL CURRENT ASSETS	$3.9B
PP&E (Net)	$3.5B
Goodwill	$679M
Intangible Assets	$1.5B
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$272M
TOTAL NON-CURRENT ASSETS	$6.0B
TOTAL ASSETS	$9.9B
Account Payables	$1.3B
Short-Term Debt	$4M
Deferred Revenue	$102M
Other Current Liabilities	$1.3B
TOTAL CURRENT LIABILITIES	$2.8B
Long-Term Debt	$1.6B
Deferred Revenue NC	$860.0K
Deferred Tax Liabilities	$556M
Other Non-Current Liabilities	$174M
TOTAL NON-CURRENT LIABILITIES	$2.5B
TOTAL LIABILITIES	$5.3B
Common Stock	$1M
Additional Paid-In Capital	$2.0B
Retained Earnings	$1.7B
Treasury Stock	-$325M
Accum. Other Comp. Income	$512M
Other Equity	$860.0K
TOTAL STOCKHOLDERS' EQUITY	$3.9B
Minority Interest	$652M
TOTAL EQUITY	$4.6B
TOTAL LIABILITIES & EQUITY	$9.9B
Total Debt	$1.6B
Net Debt	$462M