CHICAGO - Telephone and Data Systems, Inc. (NYSE: TDS), a provider of wireless, broadband, video, and voice services, has announced the election of Napoleon B. Rutledge Jr. to its Board of Directors, effective December 1, 2024. Rutledge will also take on responsibilities as a member of the TDS Audit Committee.
With a career that began at Ernst & Young LLP as a Certified Public Accountant, Rutledge has accumulated a wealth of financial experience. He currently holds the position of Senior Vice President and Chief Accounting Officer at McKesson Corporation (NYSE:MCK), a global healthcare company. His prior roles include several financial executive leadership positions at Genuine Parts Company (NYSE:GPC), which operates globally in the automotive and industrial parts industry.
Walter C.D. Carlson, the Chair of TDS's Board of Directors, expressed confidence in Rutledge's qualifications, noting his "extensive financial expertise and broad business leadership experience." Carlson emphasized that Rutledge's skills in accounting, risk management, and strategic business acumen are anticipated to benefit TDS's future endeavors.
TDS, founded in 1969 and based in Chicago, serves approximately 6 million connections across the nation through its businesses, UScellular and TDS Telecom (BCBA:TECO2m). As of September 30, 2024, the company employed about 8,000 associates.
The appointment of Rutledge to the Board is a strategic move for TDS as the company continues to navigate the complex telecommunications landscape. His background in accounting and financial leadership is expected to strengthen the company's governance and oversight capabilities, particularly in the Audit Committee.
This announcement is based on a press release statement from Telephone and Data Systems, Inc.
In other recent news, TDS US Cellular has reported promising financial growth for the third quarter of 2024. The company has revealed an improvement in adjusted EBITDA by 3%, despite a decrease in service revenues due to a shrinking subscriber base. An ongoing sale of wireless operations and spectrum to T-Mobile is in progress, anticipated to finalize by mid-2025.
The company also reported a narrowed guidance for service revenues and adjusted EBITDA for 2024, and a 2% increase in postpaid ARPU. TDS US Cellular also recorded a $136 million impairment loss on millimeter wave licenses but expects significant proceeds from the sale of spectrum licenses, projected to surpass their book value.
In addition to these developments, TDS US Cellular is expanding its fiber network, with a target of achieving 1.2 million marketable fiber addresses. The company is also preparing for the launch of an MVNO with a national 5G partner, and it is considering expanding its tower portfolio. These recent developments indicate a period of strategic transactions and growth for TDS US Cellular.
InvestingPro Insights
As Telephone and Data Systems, Inc. (TDS) welcomes Napoleon B. Rutledge Jr. to its Board of Directors, investors might be interested in some key financial insights about the company. According to InvestingPro data, TDS has a market capitalization of $3.71 billion and generated revenue of $5.04 billion in the last twelve months as of Q3 2024. Despite this substantial revenue, the company faces profitability challenges, with a negative P/E ratio of -772.21 for the same period.
InvestingPro Tips highlight that TDS has maintained dividend payments for an impressive 51 consecutive years, demonstrating a strong commitment to shareholder returns. This could be particularly relevant as the company brings in new leadership with financial expertise like Rutledge. Additionally, TDS's stock has shown significant momentum, with a strong return of 86.67% over the past year and is currently trading near its 52-week high.
The appointment of Rutledge to the Audit Committee aligns well with another InvestingPro Tip, which notes that TDS's liquid assets exceed its short-term obligations. This financial stability could provide a solid foundation for the company as it navigates future challenges and opportunities in the telecommunications sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for TDS, providing a deeper understanding of the company's financial position and market performance.
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