Delaware | 1-33409 | 20-0836269 | ||||||||||||
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer | ||||||||||||
of incorporation) |
Identification No.) |
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.00001 per share | TMUS | The NASDAQ Stock Market LLC |
Exhibit | Description | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
SIGNATURES |
T-MOBILE US, INC. |
|||||||||||
April 25, 2024 | /s/ Peter Osvaldik | ||||||||||
Peter Osvaldik Executive Vice President and Chief Financial Officer |
Quarter | |||||||||||||||||
(in thousands, except churn) | Q1 2024 | Q4 2023 | Q1 2023 | ||||||||||||||
Postpaid net account additions | 218 | 299 | 287 | ||||||||||||||
Total net customer additions | 1,172 | 1,623 | 1,319 | ||||||||||||||
Postpaid net customer additions | 1,220 | 1,570 | 1,293 | ||||||||||||||
Postpaid phone net customer additions | 532 | 934 | 538 | ||||||||||||||
Postpaid other net customer additions (2) |
688 | 636 | 755 | ||||||||||||||
Prepaid net customer (losses) additions (2) |
(48) | 53 | 26 | ||||||||||||||
Total customers, end of period (2)(3) |
120,872 | 119,700 | 114,917 | ||||||||||||||
Postpaid phone churn | 0.86 | % | 0.96 | % | 0.89 | % | |||||||||||
Prepaid churn | 2.75 | % | 2.86 | % | 2.76 | % | |||||||||||
High Speed Internet net customer additions | 405 | 541 | 523 | ||||||||||||||
Total High Speed Internet customers, end of period | 5,181 | 4,776 | 3,169 | ||||||||||||||
Quarter |
Q1 2024
vs.
Q4 2023
|
Q1 2024
vs.
Q1 2023
|
|||||||||||||||||||||||||||
(in millions, except EPS) | Q1 2024 | Q4 2023 | Q1 2023 | ||||||||||||||||||||||||||
Total service revenues | $ | 16,096 | $ | 16,043 | $ | 15,546 | 0.3 | % | 3.5 | % | |||||||||||||||||||
Postpaid service revenues | 12,631 | 12,472 | 11,862 | 1.3 | % | 6.5 | % | ||||||||||||||||||||||
Total revenues | 19,594 | 20,478 | 19,632 | (4.3) | % | (0.2) | % | ||||||||||||||||||||||
Net income | 2,374 | 2,014 | 1,940 | 17.9 | % | 22.4 | % | ||||||||||||||||||||||
Diluted EPS | 2.00 | 1.67 | 1.58 | 19.8 | % | 26.6 | % | ||||||||||||||||||||||
Adjusted EBITDA | 7,652 | 7,224 | 7,199 | 5.9 | % | 6.3 | % | ||||||||||||||||||||||
Core Adjusted EBITDA | 7,617 | 7,181 | 7,052 | 6.1 | % | 8.0 | % | ||||||||||||||||||||||
Net cash provided by operating activities | 5,084 | 4,859 | 4,051 | 4.6 | % | 25.5 | % | ||||||||||||||||||||||
Cash purchases of property and equipment, including capitalized interest | 2,627 | 1,587 | 3,001 | 65.5 | % | (12.5) | % | ||||||||||||||||||||||
Adjusted Free Cash Flow |
3,347 | 4,305 | 2,401 | (22.3) | % | 39.4 | % | ||||||||||||||||||||||
(in millions, except Postpaid net customer additions and Effective tax rate) | Previous | Current | Change (Mid-point) | ||||||||||||||||||||||||||
Postpaid net customer additions (thousands) | 5,000 | 5,500 | 5,200 | 5,600 | 150 | ||||||||||||||||||||||||
Net income (1) |
N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Effective tax rate | 24 | % | 26 | % | 24 | % | 26 | % | — | % | |||||||||||||||||||
Core Adjusted EBITDA (2) |
$ | 31,300 | $ | 31,900 | $ | 31,400 | $ | 31,900 | $ | 50 | |||||||||||||||||||
Net cash provided by operating activities | 21,500 | 22,300 | 21,600 | 22,300 | 50 | ||||||||||||||||||||||||
Capital expenditures (3) |
8,600 | 9,400 | 8,600 | 9,400 | — | ||||||||||||||||||||||||
Adjusted Free Cash Flow (4) |
16,300 | 16,900 | 16,400 | 16,900 | 50 |
Quarter | |||||||||||||||||||||||||||||
(in millions) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Net income | $ | 1,940 | $ | 2,221 | $ | 2,142 | $ | 2,014 | $ | 2,374 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Interest expense, net | 835 | 861 | 790 | 849 | 880 | ||||||||||||||||||||||||
Other income, net | (9) | (6) | (41) | (12) | (20) | ||||||||||||||||||||||||
Income tax expense | 631 | 717 | 705 | 629 | 764 | ||||||||||||||||||||||||
Operating income | 3,397 | 3,793 | 3,596 | 3,480 | 3,998 | ||||||||||||||||||||||||
Depreciation and amortization | 3,203 | 3,110 | 3,187 | 3,318 | 3,371 | ||||||||||||||||||||||||
Stock-based compensation (1) |
173 | 155 | 152 | 164 | 140 | ||||||||||||||||||||||||
Merger-related costs |
358 | 276 | 152 | 248 | 130 | ||||||||||||||||||||||||
Legal-related (recoveries) expenses, net (2) |
(43) | — | — | 1 | — | ||||||||||||||||||||||||
(Gain) loss on disposal group held for sale | (42) | 17 | — | — | — | ||||||||||||||||||||||||
Other, net (3) |
153 | 54 | 513 | 13 | 13 | ||||||||||||||||||||||||
Adjusted EBITDA | 7,199 | 7,405 | 7,600 | 7,224 | 7,652 | ||||||||||||||||||||||||
Lease revenues |
(147) | (69) | (53) | (43) | (35) | ||||||||||||||||||||||||
Core Adjusted EBITDA | $ | 7,052 | $ | 7,336 | $ | 7,547 | $ | 7,181 | $ | 7,617 | |||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in millions, except percentages) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 4,051 | $ | 4,355 | $ | 5,294 | $ | 4,859 | $ | 5,084 | |||||||||||||||||||
Cash purchases of property and equipment, including capitalized interest | (3,001) | (2,789) | (2,424) | (1,587) | (2,627) | ||||||||||||||||||||||||
Proceeds from sales of tower sites | 6 | 2 | 2 | 2 | — | ||||||||||||||||||||||||
Proceeds related to beneficial interests in securitization transactions | 1,345 | 1,309 | 1,131 | 1,031 | 890 | ||||||||||||||||||||||||
Adjusted Free Cash Flow |
$ | 2,401 | $ | 2,877 | $ | 4,003 | $ | 4,305 | $ | 3,347 | |||||||||||||||||||
Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues) | 26.1 | % | 27.7 | % | 33.3 | % | 30.3 | % | 31.6 | % | |||||||||||||||||||
Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues) | 15.4 | % | 18.3 | % | 25.2 | % | 26.8 | % | 20.8 | % | |||||||||||||||||||
FY 2024 | |||||||||||
(in millions) | Guidance Range | ||||||||||
Net cash provided by operating activities | $ | 21,600 | $ | 22,300 | |||||||
Cash purchases of property and equipment, including capitalized interest | (8,600) | (9,400) | |||||||||
Proceeds related to beneficial interests in securitization transactions (1) |
3,400 | 4,000 | |||||||||
Adjusted Free Cash Flow | $ | 16,400 | $ | 16,900 | |||||||
FY 2024 | |||||||||||
(in millions) | Guidance Range | ||||||||||
Net cash provided by operating activities | $ | 21,500 | $ | 22,300 | |||||||
Cash purchases of property and equipment, including capitalized interest | (8,600) | (9,400) | |||||||||
Proceeds related to beneficial interests in securitization transactions (1) |
3,400 | 4,000 | |||||||||
Adjusted Free Cash Flow | $ | 16,300 | $ | 16,900 | |||||||
Quarter | |||||||||||||||||||||||||||||
(in dollars) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Postpaid ARPA | $ | 138.04 | $ | 138.94 | $ | 139.83 | $ | 140.23 | $ | 140.88 | |||||||||||||||||||
Postpaid phone ARPU | 48.63 | 48.84 | 48.93 | 48.91 | 48.79 | ||||||||||||||||||||||||
Prepaid ARPU | 37.98 | 37.98 | 38.18 | 37.55 | 37.18 | ||||||||||||||||||||||||
2 |
Highlights | ||||||||
Customer Metrics | ||||||||
Financial Metrics | ||||||||
Capital Structure | ||||||||
Guidance | ||||||||
Contacts | ||||||||
Financial and Operational Tables |
3 |
4 |
Postpaid Accounts
(in thousands)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
Sequential |
Postpaid ARPA & Postpaid Phone ARPU |
5 |
Postpaid Customers
(in thousands)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
Postpaid Phone Churn |
6 |
Prepaid Customers
(in thousands)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
High Speed Internet Customers
(in thousands)
|
7 |
Service Revenues
($ in millions)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
Postpaid Service Revenues
($ in millions)
|
8 |
Equipment Revenues
($ in millions)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
Cost of Equipment Sales, exclusive of D&A
($ in millions)
|
9 |
Cost of Services, exclusive of D&A
($ in millions, % of Service revenues)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
Selling, General and Administrative (SG&A) Expense
($ in millions, % of Service revenues)
|
10 |
Net Income
($ in millions, % of Service revenues)
|
Diluted Earnings Per Share
(Diluted EPS)
|
Year-Over-Year |
Sequential |
11 |
Core Adjusted EBITDA*
($ in millions, % of Service revenues)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
Net Cash Provided by Operating Activities
($ in millions)
|
12 |
Cash Purchases of Property and Equipment, incl. Capitalized Interest
($ in millions, % of Service revenues)
|
Year-Over-Year |
Sequential |
Year-Over-Year |
Sequential |
Adjusted Free Cash Flow
($ in millions)
|
13 |
Net Debt (Excluding Tower Obligations) & Net Debt to LTM Net Income and Core Adj. EBITDA Ratios
($ in billions)
|
Stockholder Returns
($ in millions)
|
14 |
Metric | Previous | Revised | Change at Midpoint | ||||||||
Postpaid net customer additions | 5.0 to 5.5 million |
5.2 to 5.6 million |
150 thousand |
||||||||
Net income (1) |
N/A | N/A | N/A | ||||||||
Effective tax rate | 24% to 26% |
24% to 26% |
No change | ||||||||
Core Adjusted EBITDA (2) |
$31.3 to $31.9 billion |
$31.4 to $31.9 billion |
$50 million |
||||||||
Net cash provided by operating activities | $21.5 to $22.3 billion |
$21.6 to $22.3 billion |
$50 million |
||||||||
Capital expenditures (3) |
$8.6 to $9.4 billion |
$8.6 to $9.4 billion |
No change |
||||||||
Adjusted Free Cash Flow (4) |
$16.3 to $16.9 billion |
$16.4 to $16.9 billion |
$50 million |
15 |
Cathy Yao | Justin Taiber | Rob Brust | ||||||||||||||||||
Senior Vice President | Senior Director | Senior Director | ||||||||||||||||||
Investor Relations | Investor Relations | Investor Relations |
Zach Witterstaetter | Rose Kopecky | Jacob Marks | ||||||||||||||||||
Investor Relations | Investor Relations | Investor Relations | ||||||||||||||||||
Manager | Manager | Manager |
16 |
(in millions, except share and per share amounts) | March 31, 2024 |
December 31, 2023 |
|||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 6,708 | $ | 5,135 | |||||||
Accounts receivable, net of allowance for credit losses of $161 and $161 | 4,253 | 4,692 | |||||||||
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $614 and $623 |
4,059 | 4,456 | |||||||||
Inventory | 1,521 | 1,678 | |||||||||
Prepaid expenses | 715 | 702 | |||||||||
Other current assets | 2,039 | 2,352 | |||||||||
Total current assets | 19,295 | 19,015 | |||||||||
Property and equipment, net | 39,286 | 40,432 | |||||||||
Operating lease right-of-use assets | 26,766 | 27,135 | |||||||||
Financing lease right-of-use assets | 3,180 | 3,270 | |||||||||
Goodwill | 12,234 | 12,234 | |||||||||
Spectrum licenses | 97,154 | 96,707 | |||||||||
Other intangible assets, net | 2,445 | 2,618 | |||||||||
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $143 and $150 |
1,908 | 2,042 | |||||||||
Other assets | 4,000 | 4,229 | |||||||||
Total assets | $ | 206,268 | $ | 207,682 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | 7,720 | $ | 10,373 | |||||||
Short-term debt | 5,356 | 3,619 | |||||||||
Deferred revenue | 846 | 825 | |||||||||
Short-term operating lease liabilities | 3,443 | 3,555 | |||||||||
Short-term financing lease liabilities | 1,265 | 1,260 | |||||||||
Other current liabilities | 1,933 | 1,296 | |||||||||
Total current liabilities | 20,563 | 20,928 | |||||||||
Long-term debt | 71,361 | 69,903 | |||||||||
Long-term debt to affiliates | 1,496 | 1,496 | |||||||||
Tower obligations | 3,751 | 3,777 | |||||||||
Deferred tax liabilities | 14,187 | 13,458 | |||||||||
Operating lease liabilities | 27,827 | 28,240 | |||||||||
Financing lease liabilities | 1,163 | 1,236 | |||||||||
Other long-term liabilities | 3,846 | 3,929 | |||||||||
Total long-term liabilities | 123,631 | 122,039 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
Common stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,266,294,032 and 1,262,904,154 shares issued, 1,177,240,110 and 1,195,807,331 shares outstanding | — | — | |||||||||
Additional paid-in capital | 67,786 | 67,705 | |||||||||
Treasury stock, at cost, 89,053,922 and 67,096,823 shares issued | (12,982) | (9,373) | |||||||||
Accumulated other comprehensive loss | (926) | (964) | |||||||||
Retained earnings | 8,196 | 7,347 | |||||||||
Total stockholders' equity | 62,074 | 64,715 | |||||||||
Total liabilities and stockholders' equity | $ | 206,268 | $ | 207,682 | |||||||
17 |
Three Months Ended | |||||||||||||||||
(in millions, except share and per share amounts) | March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
||||||||||||||
Revenues | |||||||||||||||||
Postpaid revenues | $ | 12,631 | $ | 12,472 | $ | 11,862 | |||||||||||
Prepaid revenues | 2,403 | 2,433 | 2,417 | ||||||||||||||
Wholesale and other service revenues | 1,062 | 1,138 | 1,267 | ||||||||||||||
Total service revenues | 16,096 | 16,043 | 15,546 | ||||||||||||||
Equipment revenues | 3,251 | 4,174 | 3,719 | ||||||||||||||
Other revenues | 247 | 261 | 367 | ||||||||||||||
Total revenues | 19,594 | 20,478 | 19,632 | ||||||||||||||
Operating expenses | |||||||||||||||||
Cost of services, exclusive of depreciation and amortization shown separately below | 2,688 | 2,792 | 3,061 | ||||||||||||||
Cost of equipment sales, exclusive of depreciation and amortization shown separately below | 4,399 | 5,608 | 4,588 | ||||||||||||||
Selling, general and administrative | 5,138 | 5,280 | 5,425 | ||||||||||||||
Gain on disposal group held for sale | — | — | (42) | ||||||||||||||
Depreciation and amortization | 3,371 | 3,318 | 3,203 | ||||||||||||||
Total operating expenses | 15,596 | 16,998 | 16,235 | ||||||||||||||
Operating income | 3,998 | 3,480 | 3,397 | ||||||||||||||
Other expense, net | |||||||||||||||||
Interest expense, net | (880) | (849) | (835) | ||||||||||||||
Other income, net | 20 | 12 | 9 | ||||||||||||||
Total other expense, net | (860) | (837) | (826) | ||||||||||||||
Income before income taxes | 3,138 | 2,643 | 2,571 | ||||||||||||||
Income tax expense | (764) | (629) | (631) | ||||||||||||||
Net income | $ | 2,374 | $ | 2,014 | $ | 1,940 | |||||||||||
Net income | $ | 2,374 | $ | 2,014 | $ | 1,940 | |||||||||||
Other comprehensive income, net of tax | |||||||||||||||||
Reclassification of loss from cash flow hedges, net of tax effect of $15, $14 and $14 |
43 | 42 | 40 | ||||||||||||||
Unrealized gain on foreign currency translation adjustment, net of tax effect of $0, $0 and $0 |
— | — | 2 | ||||||||||||||
Actuarial loss, net of amortization, on pension and other postretirement benefits, net of tax effect of $(2), $(20) and $0 |
(5) | (57) | — | ||||||||||||||
Other comprehensive income (loss) | 38 | (15) | 42 | ||||||||||||||
Total comprehensive income | $ | 2,412 | $ | 1,999 | $ | 1,982 | |||||||||||
Earnings per share | |||||||||||||||||
Basic | $ | 2.00 | $ | 1.74 | $ | 1.59 | |||||||||||
Diluted | $ | 2.00 | $ | 1.67 | $ | 1.58 | |||||||||||
Weighted-average shares outstanding | |||||||||||||||||
Basic | 1,185,298,497 | 1,157,313,367 | 1,219,608,362 | ||||||||||||||
Diluted | 1,189,092,019 | 1,205,014,105 | 1,224,604,698 | ||||||||||||||
18 |
Three Months Ended | |||||||||||||||||
(in millions) | March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
||||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 2,374 | $ | 2,014 | $ | 1,940 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Depreciation and amortization | 3,371 | 3,318 | 3,203 | ||||||||||||||
Stock-based compensation expense | 140 | 167 | 177 | ||||||||||||||
Deferred income tax expense | 715 | 615 | 611 | ||||||||||||||
Bad debt expense | 282 | 235 | 222 | ||||||||||||||
Losses from sales of receivables | 21 | 30 | 38 | ||||||||||||||
Gain on remeasurement of disposal group held for sale | — | — | (13) | ||||||||||||||
Changes in operating assets and liabilities | |||||||||||||||||
Accounts receivable | (416) | (1,210) | (1,268) | ||||||||||||||
Equipment installment plan receivables | 277 | (393) | 152 | ||||||||||||||
Inventory | 170 | 15 | 129 | ||||||||||||||
Operating lease right-of-use assets | 856 | 898 | 1,008 | ||||||||||||||
Other current and long-term assets | 160 | (435) | (142) | ||||||||||||||
Accounts payable and accrued liabilities | (1,734) | 412 | (882) | ||||||||||||||
Short- and long-term operating lease liabilities | (1,017) | (901) | (1,009) | ||||||||||||||
Other current and long-term liabilities | (172) | 70 | (183) | ||||||||||||||
Other, net | 57 | 24 | 68 | ||||||||||||||
Net cash provided by operating activities | 5,084 | 4,859 | 4,051 | ||||||||||||||
Investing activities | |||||||||||||||||
Purchases of property and equipment, including capitalized interest of $(9), $(10) and $(14) |
(2,627) | (1,587) | (3,001) | ||||||||||||||
Purchases of spectrum licenses and other intangible assets, including deposits | (61) | (785) | (73) | ||||||||||||||
Proceeds from sales of tower sites | — | 2 | 6 | ||||||||||||||
Proceeds related to beneficial interests in securitization transactions | 890 | 1,031 | 1,345 | ||||||||||||||
Other, net | 11 | 118 | (5) | ||||||||||||||
Net cash used in investing activities | (1,787) | (1,221) | (1,728) | ||||||||||||||
Financing activities | |||||||||||||||||
Proceeds from issuance of long-term debt | 3,473 | — | 3,013 | ||||||||||||||
Repayments of financing lease obligations | (327) | (313) | (306) | ||||||||||||||
Repayments of long-term debt | (223) | (223) | (131) | ||||||||||||||
Repurchases of common stock | (3,594) | (2,183) | (4,619) | ||||||||||||||
Dividends on common stock | (769) | (747) | — | ||||||||||||||
Tax withholdings on share-based awards | (192) | (30) | (187) | ||||||||||||||
Other, net | (34) | (34) | (43) | ||||||||||||||
Net cash used in financing activities | (1,666) | (3,530) | (2,273) | ||||||||||||||
Change in cash and cash equivalents, including restricted cash and cash held for sale | 1,631 | 108 | 50 | ||||||||||||||
Cash and cash equivalents, including restricted cash and cash held for sale | |||||||||||||||||
Beginning of period | 5,307 | 5,199 | 4,674 | ||||||||||||||
End of period | $ | 6,938 | $ | 5,307 | $ | 4,724 | |||||||||||
19 |
Three Months Ended | |||||||||||||||||
(in millions) | March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
||||||||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Interest payments, net of amounts capitalized | $ | 896 | $ | 895 | $ | 840 | |||||||||||
Operating lease payments | 1,344 | 1,228 | 1,314 | ||||||||||||||
Income tax payments | 7 | 23 | 27 | ||||||||||||||
Non-cash investing and financing activities | |||||||||||||||||
Non-cash beneficial interest obtained in exchange for securitized receivables | $ | 661 | $ | 842 | $ | 1,119 | |||||||||||
Change in accounts payable and accrued liabilities for purchases of property and equipment | (894) | 336 | (329) | ||||||||||||||
Operating lease right-of-use assets obtained in exchange for lease obligations | 487 | 465 | 439 | ||||||||||||||
Financing lease right-of-use assets obtained in exchange for lease obligations | 263 | 263 | 239 |
20 |
Quarter | |||||||||||||||||||||||||||||
(in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Customers, end of period | |||||||||||||||||||||||||||||
Postpaid phone customers (1) |
73,372 | 74,132 | 74,982 | 75,936 | 76,468 | ||||||||||||||||||||||||
Postpaid other customers (1) |
20,153 | 20,954 | 21,330 | 22,116 | 22,804 | ||||||||||||||||||||||||
Total postpaid customers | 93,525 | 95,086 | 96,312 | 98,052 | 99,272 | ||||||||||||||||||||||||
Prepaid customers | 21,392 | 21,516 | 21,595 | 21,648 | 21,600 | ||||||||||||||||||||||||
Total customers | 114,917 | 116,602 | 117,907 | 119,700 | 120,872 | ||||||||||||||||||||||||
Adjustments to customers (1) |
— | — | — | 170 | — | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Net customer additions (losses) | |||||||||||||||||||||||||||||
Postpaid phone customers | 538 | 760 | 850 | 934 | 532 | ||||||||||||||||||||||||
Postpaid other customers | 755 | 801 | 376 | 636 | 688 | ||||||||||||||||||||||||
Total postpaid customers | 1,293 | 1,561 | 1,226 | 1,570 | 1,220 | ||||||||||||||||||||||||
Prepaid customers | 26 | 124 | 79 | 53 | (48) | ||||||||||||||||||||||||
Total net customer additions | 1,319 | 1,685 | 1,305 | 1,623 | 1,172 | ||||||||||||||||||||||||
Migrations from prepaid to postpaid plans | 145 | 140 | 155 | 170 | 145 | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | |||||||||||||||||||||||||
Churn | |||||||||||||||||||||||||||||
Postpaid phone churn | 0.89 | % | 0.77 | % | 0.87 | % | 0.96 | % | 0.86 | % | |||||||||||||||||||
Prepaid churn | 2.76 | % | 2.62 | % | 2.81 | % | 2.86 | % | 2.75 | % |
Quarter | |||||||||||||||||||||||||||||
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | |||||||||||||||||||||||||
Postpaid upgrade rate | |||||||||||||||||||||||||||||
Postpaid device upgrade rate | 3.2 | % | 2.6 | % | 2.7 | % | 3.2 | % | 2.4 | % |
21 |
Quarter | |||||||||||||||||||||||||||||
(in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Accounts, end of period | |||||||||||||||||||||||||||||
Total postpaid customer accounts | 28,813 | 29,112 | 29,498 | 29,797 | 30,015 | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Net account additions | |||||||||||||||||||||||||||||
Postpaid net account additions | 287 | 299 | 386 | 299 | 218 | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
High speed internet customers, end of period | |||||||||||||||||||||||||||||
Postpaid high speed internet customers | 2,855 | 3,302 | 3,807 | 4,288 | 4,634 | ||||||||||||||||||||||||
Prepaid high speed internet customers | 314 | 376 | 428 | 488 | 547 | ||||||||||||||||||||||||
Total high speed internet customers, end of period | 3,169 | 3,678 | 4,235 | 4,776 | 5,181 | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
High speed internet - net customer additions | |||||||||||||||||||||||||||||
Postpaid high speed internet customers | 445 | 447 | 505 | 481 | 346 | ||||||||||||||||||||||||
Prepaid high speed internet customers | 78 | 62 | 52 | 60 | 59 | ||||||||||||||||||||||||
Total high speed internet net customer additions | 523 | 509 | 557 | 541 | 405 | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in millions) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Device financing - equipment installment plans | |||||||||||||||||||||||||||||
Gross EIP financed | $ | 3,335 | $ | 2,858 | $ | 3,116 | $ | 4,275 | $ | 3,218 | |||||||||||||||||||
EIP billings | 3,871 | 3,732 | 3,622 | 3,829 | 3,880 | ||||||||||||||||||||||||
EIP receivables, net | 7,262 | 6,745 | 6,349 | 6,498 | 5,967 | ||||||||||||||||||||||||
Device financing - leased devices | |||||||||||||||||||||||||||||
Lease revenues | $ | 147 | $ | 69 | $ | 53 | $ | 43 | $ | 35 | |||||||||||||||||||
Leased device depreciation | 58 | 46 | 37 | 29 | 22 | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in dollars) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Operating measures | |||||||||||||||||||||||||||||
Postpaid ARPA | $ | 138.04 | $ | 138.94 | $ | 139.83 | $ | 140.23 | $ | 140.88 | |||||||||||||||||||
Postpaid phone ARPU | 48.63 | 48.84 | 48.93 | 48.91 | 48.79 | ||||||||||||||||||||||||
Prepaid ARPU | 37.98 | 37.98 | 38.18 | 37.55 | 37.18 | ||||||||||||||||||||||||
22 |
Quarter | |||||||||||||||||||||||||||||
(in millions, except percentages) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Financial measures | |||||||||||||||||||||||||||||
Service revenues | $ | 15,546 | $ | 15,738 | $ | 15,914 | $ | 16,043 | $ | 16,096 | |||||||||||||||||||
Equipment revenues | $ | 3,719 | $ | 3,169 | $ | 3,076 | $ | 4,174 | $ | 3,251 | |||||||||||||||||||
Lease revenues | 147 | 69 | 53 | 43 | 35 | ||||||||||||||||||||||||
Equipment sales | $ | 3,572 | $ | 3,100 | $ | 3,023 | $ | 4,131 | $ | 3,216 | |||||||||||||||||||
Total revenues | $ | 19,632 | $ | 19,196 | $ | 19,252 | $ | 20,478 | $ | 19,594 | |||||||||||||||||||
Net income | $ | 1,940 | $ | 2,221 | $ | 2,142 | $ | 2,014 | $ | 2,374 | |||||||||||||||||||
Net income margin | 12.5 | % | 14.1 | % | 13.5 | % | 12.6 | % | 14.7 | % | |||||||||||||||||||
Adjusted EBITDA | $ | 7,199 | $ | 7,405 | $ | 7,600 | $ | 7,224 | $ | 7,652 | |||||||||||||||||||
Adjusted EBITDA margin | 46.3 | % | 47.1 | % | 47.8 | % | 45.0 | % | 47.5 | % | |||||||||||||||||||
Core Adjusted EBITDA | $ | 7,052 | $ | 7,336 | $ | 7,547 | $ | 7,181 | $ | 7,617 | |||||||||||||||||||
Core Adjusted EBITDA margin | 45.4 | % | 46.6 | % | 47.4 | % | 44.8 | % | 47.3 | % | |||||||||||||||||||
Cost of services, exclusive of depreciation and amortization | $ | 3,061 | $ | 2,916 | $ | 2,886 | $ | 2,792 | $ | 2,688 | |||||||||||||||||||
Merger-related costs | 208 | 178 | 120 | 146 | 107 | ||||||||||||||||||||||||
Other Special Items | 23 | 18 | 154 | — | 1 | ||||||||||||||||||||||||
Cost of services, excluding depreciation and amortization and Special Items | $ | 2,830 | $ | 2,720 | $ | 2,612 | $ | 2,646 | $ | 2,580 | |||||||||||||||||||
Cost of equipment sales, exclusive of depreciation and amortization | $ | 4,588 | $ | 4,088 | $ | 4,249 | $ | 5,608 | $ | 4,399 | |||||||||||||||||||
Merger-related recoveries | (9) | — | (3) | — | — | ||||||||||||||||||||||||
Cost of equipment sales, excluding depreciation and amortization and Special Items | $ | 4,597 | $ | 4,088 | $ | 4,252 | $ | 5,608 | $ | 4,399 | |||||||||||||||||||
Selling, general and administrative | $ | 5,425 | $ | 5,272 | $ | 5,334 | $ | 5,280 | $ | 5,138 | |||||||||||||||||||
Merger-related costs | 159 | 98 | 35 | 102 | 23 | ||||||||||||||||||||||||
Other Special Items | 87 | 36 | 359 | 14 | 12 | ||||||||||||||||||||||||
Selling, general and administrative, excluding Special Items | $ | 5,179 | $ | 5,138 | $ | 4,940 | $ | 5,164 | $ | 5,103 | |||||||||||||||||||
Total bad debt expense and losses from sales of receivables | $ | 260 | $ | 264 | $ | 274 | $ | 265 | $ | 303 | |||||||||||||||||||
Bad debt and losses from sales of receivables as a percentage of Total revenues | 1.3 | % | 1.4 | % | 1.4 | % | 1.3 | % | 1.5 | % | |||||||||||||||||||
Cash purchases of property and equipment including capitalized interest | $ | 3,001 | $ | 2,789 | $ | 2,424 | $ | 1,587 | $ | 2,627 | |||||||||||||||||||
Capitalized interest | 14 | 14 | 66 | 10 | 9 | ||||||||||||||||||||||||
Net cash proceeds from securitization | $ | (29) | $ | (31) | $ | (33) | $ | (21) | $ | (29) | |||||||||||||||||||
Net cash payments for Merger-related costs | $ | 484 | $ | 728 | $ | 345 | $ | 416 | $ | 293 | |||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in millions, except share and per share amounts) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Stockholder returns | |||||||||||||||||||||||||||||
Total repurchases | $ | 4,766 | $ | 3,525 | $ | 2,675 | $ | 2,241 | $ | 3,568 | |||||||||||||||||||
Total shares repurchased | 32,963,940 | 25,183,838 | 19,313,159 | 15,464,107 | 21,933,790 | ||||||||||||||||||||||||
Average purchase price per share | $ | 144.57 | $ | 140.00 | $ | 138.48 | $ | 144.95 | $ | 162.69 | |||||||||||||||||||
Total dividends paid | $ | — | $ | — | $ | — | $ | 747 | $ | 769 | |||||||||||||||||||
Dividends per share | — | — | — | 0.65 | 0.65 | ||||||||||||||||||||||||
Total stockholder returns | $ | 4,766 | $ | 3,525 | $ | 2,675 | $ | 2,988 | $ | 4,337 | |||||||||||||||||||
Cumulative stockholder returns | $ | 7,766 | $ | 11,291 | $ | 13,966 | $ | 16,954 | $ | 21,291 | |||||||||||||||||||
23 |
Quarter | |||||||||||||||||||||||||||||
(in millions, except percentages) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Net income | $ | 1,940 | $ | 2,221 | $ | 2,142 | $ | 2,014 | $ | 2,374 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Interest expense, net | 835 | 861 | 790 | 849 | 880 | ||||||||||||||||||||||||
Other income, net | (9) | (6) | (41) | (12) | (20) | ||||||||||||||||||||||||
Income tax expense | 631 | 717 | 705 | 629 | 764 | ||||||||||||||||||||||||
Operating income | 3,397 | 3,793 | 3,596 | 3,480 | 3,998 | ||||||||||||||||||||||||
Depreciation and amortization | 3,203 | 3,110 | 3,187 | 3,318 | 3,371 | ||||||||||||||||||||||||
Stock-based compensation (1) |
173 | 155 | 152 | 164 | 140 | ||||||||||||||||||||||||
Merger-related costs | 358 | 276 | 152 | 248 | 130 | ||||||||||||||||||||||||
Legal-related (recoveries) expenses, net (2) |
(43) | — | — | 1 | — | ||||||||||||||||||||||||
(Gain) loss on disposal group held for sale | (42) | 17 | — | — | — | ||||||||||||||||||||||||
Other, net (3) |
153 | 54 | 513 | 13 | 13 | ||||||||||||||||||||||||
Adjusted EBITDA | 7,199 | 7,405 | 7,600 | 7,224 | 7,652 | ||||||||||||||||||||||||
Lease revenues | (147) | (69) | (53) | (43) | (35) | ||||||||||||||||||||||||
Core Adjusted EBITDA | $ | 7,052 | $ | 7,336 | $ | 7,547 | $ | 7,181 | $ | 7,617 | |||||||||||||||||||
Net income margin (Net income divided by Service revenues) | 12.5 | % | 14.1 | % | 13.5 | % | 12.6 | % | 14.7 | % | |||||||||||||||||||
Adjusted EBITDA margin (Adjusted EBITDA divided by Service revenues) | 46.3 | % | 47.1 | % | 47.8 | % | 45.0 | % | 47.5 | % | |||||||||||||||||||
Core Adjusted EBITDA margin (Core Adjusted EBITDA divided by Service revenues) | 45.4 | % | 46.6 | % | 47.4 | % | 44.8 | % | 47.3 | % | |||||||||||||||||||
24 |
(in millions, except net debt ratios) | Mar 31, 2023 |
Jun 30, 2023 |
Sep 30, 2023 |
Dec 31, 2023 |
Mar 31, 2024 |
||||||||||||||||||||||||
Short-term debt | $ | 5,215 | $ | 7,731 | $ | 3,437 | $ | 3,619 | $ | 5,356 | |||||||||||||||||||
Short-term financing lease liabilities | 1,180 | 1,220 | 1,286 | 1,260 | 1,265 | ||||||||||||||||||||||||
Long-term debt | 68,035 | 68,646 | 70,365 | 69,903 | 71,361 | ||||||||||||||||||||||||
Long-term debt to affiliates | 1,495 | 1,495 | 1,496 | 1,496 | 1,496 | ||||||||||||||||||||||||
Financing lease liabilities | 1,284 | 1,254 | 1,273 | 1,236 | 1,163 | ||||||||||||||||||||||||
Less: Cash and cash equivalents | (4,540) | (6,647) | (5,030) | (5,135) | (6,708) | ||||||||||||||||||||||||
Net debt (excluding tower obligations) | $ | 72,669 | $ | 73,699 | $ | 72,827 | $ | 72,379 | $ | 73,933 | |||||||||||||||||||
Divided by: Last twelve months Net income | $ | 3,817 | $ | 6,146 | $ | 7,780 | $ | 8,317 | $ | 8,751 | |||||||||||||||||||
Net debt (excluding tower obligations) to LTM Net income Ratio | 19.0 | 12.0 | 9.4 | 8.7 | 8.4 | ||||||||||||||||||||||||
Divided by: Last twelve months Adjusted EBITDA | $ | 28,070 | $ | 28,471 | $ | 29,032 | $ | 29,428 | $ | 29,881 | |||||||||||||||||||
Net debt (excluding tower obligations) to LTM Adjusted EBITDA Ratio | 2.6 | 2.6 | 2.5 | 2.5 | 2.5 | ||||||||||||||||||||||||
Divided by: Last twelve months Core Adjusted EBITDA | $ | 26,980 | $ | 27,698 | $ | 28,517 | $ | 29,116 | $ | 29,681 | |||||||||||||||||||
Net debt (excluding tower obligations) to LTM Core Adjusted EBITDA Ratio | 2.7 | 2.7 | 2.6 | 2.5 | 2.5 | ||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||
(in millions, except percentages) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 4,051 | $ | 4,355 | $ | 5,294 | $ | 4,859 | $ | 5,084 | |||||||||||||||||||
Cash purchases of property and equipment, including capitalized interest | (3,001) | (2,789) | (2,424) | (1,587) | (2,627) | ||||||||||||||||||||||||
Proceeds from sales of tower sites | 6 | 2 | 2 | 2 | — | ||||||||||||||||||||||||
Proceeds related to beneficial interests in securitization transactions | 1,345 | 1,309 | 1,131 | 1,031 | 890 | ||||||||||||||||||||||||
Adjusted Free Cash Flow | $ | 2,401 | $ | 2,877 | $ | 4,003 | $ | 4,305 | $ | 3,347 | |||||||||||||||||||
Net cash provided by operating activities margin |
26.1 | % | 27.7 | % | 33.3 | % | 30.3 | % | 31.6 | % | |||||||||||||||||||
Adjusted Free Cash Flow margin |
15.4 | % | 18.3 | % | 25.2 | % | 26.8 | % | 20.8 | % | |||||||||||||||||||
25 |
FY 2024 | |||||||||||
(in millions) | Guidance Range | ||||||||||
Net cash provided by operating activities | $ | 21,600 | $ | 22,300 | |||||||
Cash purchases of property and equipment, including capitalized interest | (8,600) | (9,400) | |||||||||
Proceeds related to beneficial interests in securitization transactions (1) |
3,400 | 4,000 | |||||||||
Adjusted Free Cash Flow | $ | 16,400 | $ | 16,900 | |||||||
FY 2024 | |||||||||||
(in millions) | Guidance Range | ||||||||||
Net cash provided by operating activities | $ | 21,500 | $ | 22,300 | |||||||
Cash purchases of property and equipment, including capitalized interest | (8,600) | (9,400) | |||||||||
Proceeds related to beneficial interests in securitization transactions (1) |
3,400 | 4,000 | |||||||||
Adjusted Free Cash Flow | $ | 16,300 | $ | 16,900 | |||||||
26 |
27 |
28 |