Telephone and Data Systems Inc. presentation at New York Society of Security Analysts

Business Wire, Dec 1, 1994

NEW YORK--(BUSINESS WIRE)--The following is a summary of a presentation Thursday, at the New York Society of Security Analysts by the management of Telephone and Data Systems Inc.. -0-

The management of Telephone and Data Systems Inc. (AMEX symbol "TDS") will be addressing the New York Society of Security Analysts ("NYSSA") on December 1, 1994. At that time, TDS will discuss operating results in all three strategic business units for third quarter 1994 and nine months ended September 30, 1994.

TDS reported excellent third quarter 1994 growth in customers and financial results. Revenues rose 29.4% to $193.1 million on a 31.6% increase in customer units. Operating cash flow surged 37.9% to $72.5 million while operating income climbed 52.9% to $32.3 million. Cash flow, including operating cash flow and $3.3 million of cash flow from minority cellular investments, increased 38.8% to $75.9 million. Net income jumped 48.3% to $17.6 million and earnings per share grew 34.8% to $.31.

United States Cellular Corporation's (AMEX symbol "USM," TDS's 81.3%-owned subsidiary), strong third quarter performance reflects primarily continuing system expansion, rapid growth in units in service and strong roaming revenue. USM has grown its consolidated customer base 61.5% by adding 138,600 consolidated customers since September 30, 1993. USM has added 13 markets and 242 cell sites to its consolidated operations since September 30, 1993 and plans to continue its rapid system expansion. At September 30, 1994, USM owned or had the right to acquire interests in 208 cellular telephone markets representing approximately 24.2 million population equivalents, making it the seventh largest cellular company in the United States in terms of population equivalents.

TDS Telecommunications Corporation's ("TDS Telecom") third quarter results reflect the effects of acquisitions, growth in access minutes and access lines, and ongoing cost reduction programs. Internal growth over the past twelve months has provided TDS Telecom with 15,800 additional access lines while acquisitions added another 18,600. As of September 30, 1994, TDS Telecom operated 95 telephone companies serving 385,000 access in 29 states. With the completion of five pending acquisitions, TDS Telecom will provide service to over 400,000 access lines through 100 telephone companies in 29 states.

American Paging Inc.'s (AMEX symbol "APP," TDS's 82.5%-owned subsidiary) third quarter financial performance reflects rapid growth in customers units and revenues and modest growth in operating cash flow. Internal customer growth generated 145,500 net new paging customer units since September 30, 1993. APP served 578,400 pagers through 38 sales and service operating centers at September 30, 1994.

TDS is a Chicago-based telecommunications company with established local telephone, cellular telephone and radio paging operations. TDS strives to build value for its shareholders by providing excellent communications services in attractive, closely related segments of the telecommunications industry.

NOTE: Teleconference available via Darome.

Call 800/424-2149.

CONTACT: Telephone and Data Systems Inc., Chicago

Jennifer Kahl, 312/630-1900