CHICAGO, June 26 /PRNewswire-FirstCall/ -- Telephone and Data Systems, Inc. and United States Cellular Corporation announced that they would not file their Forms 10-K for the year ended Dec. 31, 2005 or their Forms 10-Q for the period ended March 31, 2006 by June 30, 2006. In addition, as a result of the further delay in such filings, Forms 10-Q for the period ended June 30, 2006 will also be delayed. As a result of the delays, TDS and U.S. Cellular are rescheduling their annual meetings of shareholders to a date to be determined when the companies file their Forms 10-K. TDS had originally scheduled its annual meeting for July 6 and U.S. Cellular had scheduled its meeting for July 7. The delay is due to the companies requiring additional time to review financial information regarding the footnote disclosure on lease future minimum rental payments. The lease review must be completed prior to the filing of the Forms 10-K. Shareholders will receive annual financial information included in the Forms 10-K with their proxy materials.
On Nov. 10, 2005, the companies announced that they would restate financial results for several prior periods. The companies completed and filed their restatements on April 26, 2006. The time spent completing the restatement caused the companies to be late with their other SEC filings.
The companies have not filed their Forms 10-K for the year ended Dec. 31, 2005, or their Forms 10-Q for the quarter ended March 31, 2006, on a timely basis. As a result, the companies are not in compliance with American Stock Exchange (AMEX) listing standards. Both companies have obtained extensions until June 30, 2006 to regain compliance with AMEX listing standards. In addition, the companies have not distributed their 2005 annual reports on a timely basis, but have received an extension to do so from the AMEX until July 31, 2006. TDS and U.S. Cellular are seeking further extensions to regain compliance with AMEX listing standards with respect to these documents as well as with respect to the filing of their Forms 10-Q for the quarter ended June 30, 2006.
The restatements and delays in filing quarterly and annual reports resulted in defaults under revolving credit agreements between the companies and certain lenders and under certain forward contracts between subsidiaries of the companies and a counterparty. Waivers of such defaults obtained previously were extended, on the condition that the companies file their Forms 10-K for the year ended Dec. 31, 2005 and Forms 10-Q for the quarter ended March 31, 2006 by June 30, 2006. Both companies are seeking an extension of these waivers from their lenders and counterparty, as well as, a waiver to extend the filing deadline for Forms 10-Q for the quarter ended June 30, 2006.
About TDS
TDS is a diversified telecommunications corporation founded in 1969. Through its business units, U.S. Cellular and TDS Telecom, TDS operates primarily by providing wireless, local telephone and broadband services. As of March 31, 2006, the company employed 11,600 people and served 6.7 million customers/units in 36 states.
About U.S. Cellular
As of March 31, 2006, U.S. Cellular, the nation's sixth-largest wireless service carrier, provided wireless service to 5.6 million customers in 26 states. The Chicago-based company operates on a customer satisfaction strategy, meeting customer needs by providing a comprehensive range of wireless products and services, superior customer support and a high-quality network.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates and expectations. These statements are based on current estimates, projections and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: The ability of U.S. Cellular to successfully manage and grow the operations of the Chicago MTA and newly launched markets; changes in the overall economy; changes in competition in the markets in which U.S. Cellular and TDS Telecom operate; changes due to industry consolidation; advances in telecommunications technology, including Voice over Internet Protocol; changes to access and pricing of unbundled network elements; changes in the state and federal telecommunications regulatory environment; changes in the value of investments, including variable prepaid forward contracts; an adverse change in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; uncertainty of access to the capital markets; possible future restatements; pending and future litigation; acquisitions/ divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming rates and the mix of products and services offered in U.S. Cellular and TDS Telecom markets. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K used by TDS to furnish this press release to the SEC, which are incorporated by reference herein.
For more information about TDS or its business units, visit:
TDS: http://www.teldta.com/ TDS Telecom: http://www.tdstelecom.com/
USM: http://www.uscellular.com/ TDS Metrocom: http://www.tdsmetro.com/
