CHICAGO, May 5 /PRNewswire-FirstCall/ -- Telephone and Data Systems, Inc. and United States Cellular Corporation today announced that they expect to release their first quarter operating results, originally scheduled for Thurs., May 6, 2010, to before the market opens on Mon., May 10, 2010 and hold their quarterly investor conference call at 9:30 am CDT that same day. Interested parties may also listen to the call live by accessing the Conference Calls page of http://www.teldta.com/ and http://www.uscellular.com/.
In preparing its financial statements for the three months ended March 31, 2010, the company discovered certain errors related to accounting for sales tax liabilities and revenue deferrals. These errors resulted in the overstatement of service revenues and understatement of sales tax liabilities for the years ended 2009, 2008 and 2007 and related interim periods. In accordance with SEC Staff Accounting Bulletin Nos. 99 and 108 ("SAB 99 and SAB 108"), the company has evaluated these errors and determined that they are immaterial to each of the reporting periods affected and, therefore, amendment of previously filed reports is not required. However, if the adjustments to correct the cumulative errors were recorded in the first quarter 2010, the company believes the impact would be material to the first quarter and would impact comparisons to prior periods. As permitted by SAB 108, in the next filings of our quarterly and annual consolidated financial statements, the company plans to adjust previously reported annual and quarterly results for the 2009, 2008, and 2007 periods for these immaterial amounts. In addition to recording these adjustments, the company plans to record other adjustments to prior year amounts to correct other immaterial out of period items, which include adjustments related to rent expense as disclosed in our 2009 Form 10-K, and other immaterial items.
The delay is to allow additional time to complete the adjustment of prior year financial statements. The companies expect to file both of their Forms 10-Q for the quarter ended March 31, 2010 on Mon., May 10, 2010.
About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 500® company, provides wireless, local and long-distance telephone, and broadband services to 7.3 million customers in 36 states through its business units, U.S. Cellular (wireless) and TDS Telecom (wireline). Founded in 1969 and headquartered in Chicago, TDS had 12,400 employees as of Dec. 31, 2009. For more information about TDS, visit http://www.teldta.com/.
About U.S. Cellular
United States Cellular Corporation, the nation's sixth-largest wireless carrier, provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to more than 6.1 million customers in 26 states. The Chicago-based company employed 8,900 full-time equivalent associates as of Dec. 31, 2009. For more information about U.S. Cellular, visit http://www.uscellular.com/.
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 the company to successfully grow its markets; the overall economy; competition; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents filed with the SEC.
For more information about TDS and its subsidiaries, visit: TDS: http://www.teldta.com/ U.S. Cellular: http://www.uscellular.com/ TDS Telecom: http://www.tdstelecom.com/
Telephone and Data Systems, Inc.; United States Cellular Corporation
CONTACT: Jane McCahon, Vice President of Corporate Relations of
Telephone and Data Systems, Inc., +1-312-592-5379, jane.mccahon@teldta.com
Web Site: http://www.teldta.com/
http://www.uscellular.com/
