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TMUS · T-Mobile US, Inc.

21 filings

10-K

TMUS 10-K Annual Reports

T-Mobile US, Inc. - 21 annual reports

Filing record · 2016–202610-K1110-Q338-K226

2025
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2025
T-Mobile US, Inc. (TMUS) reported strong performance for the fiscal year ending December 31, 2025. The company demonstrated robust revenue growth, driven primarily by an 11% increase in postpaid revenues, attributed to higher average postpaid accounts and ARPA, bolstered by strategic acquisitions like UScellular. While prepaid revenues saw a modest 1% increase, wholesale and other service revenues experienced a 16% decline, primarily due to lower MVNO revenues, partially offset by growth in advertising revenue from recent acquisitions. Financially, T-Mobile showcased significant operational efficiency and strategic capital allocation. Net income saw a slight decrease of 3% to $10.99 billion, impacted by merger-related costs and restructuring charges, but Adjusted EBITDA grew by 7% to $33.94 billion, indicating a healthy underlying operational performance. The company also reported substantial growth in net cash provided by operating activities, up 25% to $27.95 billion, and a significant increase in investing activities, driven by capital expenditures for network expansion and acquisitions. The company also continued its commitment to shareholder returns, authorizing substantial repurchase programs for 2025 and 2026.
Feb 11, 2026
2024
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2024
T-Mobile US, Inc. (TMUS) reported a strong fiscal year 2024, demonstrating robust growth and strategic advancements. The company's 'Un-carrier' strategy continues to resonate with customers, driving postpaid service revenue growth of 7% and an increase in total customers to 129.5 million. Significant investments were made in network expansion and technology, particularly in 5G capabilities, positioning T-Mobile for future growth and service differentiation. The company also executed key strategic acquisitions and joint ventures, including the completion of the Ka'ena Corporation merger and agreements to acquire Lumos and Metronet, aimed at expanding its fiber broadband offerings and strengthening its market position. These initiatives, coupled with a continued focus on customer experience and network quality, underscore T-Mobile's commitment to innovation and market leadership. The company's financial performance was solid, with increased operating income and net income, supported by effective cost management and synergistic growth. T-Mobile also continued its commitment to returning capital to shareholders through its robust stock repurchase and dividend programs.
Jan 31, 2025
2023
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2023
T-Mobile US, Inc. reported robust financial performance for the year ended December 31, 2023. The company demonstrated strong growth in its postpaid services, with a notable increase in both the number of accounts and average revenue per account. This growth, coupled with effective cost management and realization of merger synergies, led to a significant rise in operating income and net income. The company's 'Un-carrier' strategy continues to resonate with customers, driving network expansion and service innovation. T-Mobile's investment in its 5G network, described as the largest, fastest, and most advanced, remains a key differentiator. While facing a competitive landscape, T-Mobile is actively managing its debt and has initiated a substantial stockholder return program, indicating a focus on shareholder value. Despite ongoing risks such as cybersecurity threats and regulatory uncertainties, T-Mobile's financial results reflect a positive trajectory. The acquisition of Ka'ena Corporation is expected to further bolster prepaid revenues, demonstrating a strategic approach to portfolio enhancement. Investors can look to the company's continued network investments and customer acquisition strategies as drivers for future growth.
Feb 2, 2024
2022
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2022
T-Mobile US, Inc. (TMUS) reported its annual results for the year ended December 31, 2022. The company continues to execute its 'Un-carrier' strategy, focusing on customer experience and network expansion. Total revenues saw a slight decrease of 1% year-over-year, primarily due to a decline in equipment revenues, while postpaid revenues saw a healthy increase of 8%. Operating expenses were relatively stable, but the company incurred significant merger-related costs and a substantial loss on the sale of its Wireline Business. Despite these factors, T-Mobile demonstrated strong operational performance with an increase in postpaid customer accounts and net additions, alongside improvements in postpaid ARPA and a decrease in churn rates for both postpaid phone and prepaid customers. The company made significant investments in spectrum acquisition and network modernization, particularly in its 5G network deployment. Management remains optimistic about future service revenue growth, driven by continued postpaid customer acquisition and ARPA increases. The company also authorized a substantial stock repurchase program, indicating a commitment to returning value to shareholders. Key areas of focus moving forward include realizing further merger synergies, managing integration activities, and continuing network development to maintain its competitive edge.
Feb 14, 2023
2021
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2021
T-Mobile US, Inc.'s (TMUS) 2021 10-K filing highlights a year of significant growth and integration following the merger with Sprint. The company reported substantial increases in total revenues, driven by strong postpaid and wholesale segment growth, alongside a notable expansion in equipment revenues. T-Mobile continued to invest heavily in its 5G network build-out, acquiring new spectrum licenses and upgrading infrastructure, positioning itself as a leader in 5G deployment. Financially, T-Mobile demonstrated robust operational performance with increased Adjusted EBITDA and Free Cash Flow, underscoring its ability to manage its substantial debt load. Despite facing challenges such as the lingering effects of the COVID-19 pandemic and a significant cyberattack, the company maintained its strategic focus on customer acquisition and network expansion. The report also emphasizes the company's ongoing integration efforts, commitment to human capital development, and its proactive approach to environmental sustainability and corporate governance.
Feb 11, 2022
2020
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2020
T-Mobile US, Inc. (TMUS) filed its 2020 10-K, reporting on a transformative year marked by the significant merger with Sprint completed on April 1, 2020. This strategic combination substantially expanded T-Mobile's operational scale, customer base, and spectrum holdings, positioning it as a stronger competitor in the wireless market. The company has embarked on integrating Sprint's operations, focusing on building a leading 5G network and realizing significant synergies. Despite incurring substantial merger-related costs and facing challenges from the COVID-19 pandemic, T-Mobile demonstrated robust growth in total revenues and expanded its postpaid customer base, driven by the combined entity's offerings and network capabilities. Financially, the company saw a significant increase in total revenues and operating income, largely attributable to the merger's inclusion of Sprint's financials. However, net income experienced a decrease year-over-year, impacted by substantial merger-related costs, including integration expenses, restructuring costs, and the IPO of Boost Mobile. The company's balance sheet reflects a significantly larger asset base and increased debt following the merger. Management highlighted a strong focus on network integration and achieving cost efficiencies, while also acknowledging ongoing risks related to competition, regulatory environments, and the successful integration of the two businesses.
Feb 23, 2021
2019
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2019
T-Mobile US, Inc. (TMUS) filed its 2019 Form 10-K on February 5, 2020, detailing its financial performance and significant strategic initiatives. The report highlights a robust operational year, marked by strong customer growth, particularly in the branded postpaid segment, and significant investments in network expansion, including the launch of a nationwide 5G network in December 2019. Financially, the company demonstrated revenue growth and improved operating income, partly driven by its customer-centric "Un-carrier" strategy. The most critical development discussed is the ongoing merger with Sprint, which was expected to close in early 2020, subject to regulatory and judicial approvals. This merger represented a transformative event for T-Mobile, aiming to create a more formidable competitor in the U.S. wireless market with enhanced network capabilities and greater scale. The company detailed the extensive efforts and commitments made to secure regulatory approval, including a significant divestiture to DISH Network. Investors were closely watching the progress and potential hurdles of this merger, as it was central to T-Mobile's future growth and competitive positioning.
Feb 6, 2020
2018
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2018
T-Mobile US, Inc.'s 2018 10-K filing highlights a year of significant growth and strategic positioning, notably the pending merger with Sprint Corporation. The company reported increased total revenues and service revenues, driven by its successful 'Un-carrier' strategy and customer growth across its postpaid and prepaid segments. Network investments, particularly in 600 MHz spectrum for 5G deployment, were a key focus, with substantial contracts awarded to Nokia and Ericsson to support this expansion. The merger with Sprint, announced in April 2018, is presented as a transformative event expected to accelerate the launch of a nationwide 5G network, foster innovation, and increase competition. While regulatory approvals were anticipated in the first half of 2019, the company acknowledged the associated risks, including potential delays or unfavorable conditions. Despite these forward-looking initiatives, T-Mobile US operates in a highly competitive market, facing pressure on pricing and margins from larger competitors. The company also detailed various risk factors, including those related to the Sprint merger, data security, technological advancements, and regulatory changes.
Feb 7, 2019
2017
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2017
T-Mobile US, Inc.'s 2017 Form 10-K highlights a year of significant growth and strategic advancements, driven by its "Un-carrier" strategy and substantial network investments. The company continued to expand its customer base, demonstrating strong performance in both branded postpaid and prepaid segments. Key financial highlights include a notable increase in total revenues and operating income, bolstered by the positive impact of the Tax Cuts and Jobs Act of 2017, which significantly boosted net income. Strategic investments in network infrastructure, particularly the acquisition of 600 MHz spectrum and early 5G deployment preparations, position T-Mobile for future growth. The company also focused on expanding its distribution footprint and enhancing customer experience through its Un-carrier initiatives. While facing intense competition and regulatory considerations, T-Mobile's management emphasizes its commitment to customer-centric innovation and network superiority as core drivers of its ongoing success and market position.
Feb 8, 2018
2016
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2016
T-Mobile US, Inc.'s 2016 10-K filing highlights a period of substantial growth and strategic advancement. The company significantly increased its total revenues by 16% to $37.2 billion, driven by a 12% rise in service revenues and a notable 30% jump in equipment revenues. This growth was fueled by the continued success of its "Un-carrier" strategy, which resonated well with customers, leading to improved branded postpaid phone churn and a solid increase in total branded customers. The company also demonstrated strong operational improvements, with operating income soaring by 84% and net income more than doubling year-over-year. T-Mobile continued to invest heavily in its network infrastructure, expanding its 4G LTE coverage and capacity through spectrum acquisition and technology deployment, positioning itself for future growth and enhanced customer experience. Despite significant debt, the company's operational performance and free cash flow generation improved, indicating a strengthening financial position. The filing also underscores T-Mobile's commitment to innovation with initiatives like the T-Mobile ONE plan, aiming to simplify offerings and provide better value. The company actively manages its spectrum portfolio and continues to expand its network's reach and speed, reinforcing its competitive position in the dynamic wireless market. While facing inherent industry risks such as intense competition and regulatory scrutiny, T-Mobile's strategic execution and customer-centric approach appear to be driving positive momentum.
Feb 14, 2017
2015
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2015
T-Mobile US, Inc. reported a strong financial performance for the year ended December 31, 2015, demonstrating significant growth in total revenues, which reached $32.1 billion, an 8% increase year-over-year. This growth was primarily driven by a 14% increase in branded postpaid revenues and an 8% increase in branded prepaid revenues, reflecting the continued success of its "Un-carrier" strategy and network improvements. The company also saw a substantial increase in net income to $733 million, up from $247 million in the prior year, and an improvement in Adjusted EBITDA to $7.4 billion. T-Mobile continued to expand its network coverage and capacity, with its LTE network covering 305 million people. The company also focused on customer retention, evidenced by a decrease in branded postpaid phone churn to 1.39%. The "Un-carrier" initiatives, including no annual contracts, unlimited streaming, and international roaming benefits, continue to resonate with customers, driving strong net customer additions of 8.3 million. The company remains committed to investing in network expansion and spectrum acquisition to support future growth.
Feb 17, 2016
2014
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2014
T-Mobile US, Inc.'s 2014 Form 10-K report highlights significant strategic progress driven by its "Un-carrier" strategy, which focuses on addressing customer pain points and delivering innovative services. The company reported strong customer growth, particularly in the branded postpaid segment, and continued expansion of its nationwide LTE network coverage. Financial performance showed an increase in total revenues and a positive net income for the year, a significant improvement from the previous year's loss, although the company continues to invest heavily in network modernization and spectrum acquisition. Key financial metrics indicate a positive trajectory, with growing revenues and improving customer retention metrics like reduced churn. The company's investment in LTE network build-out and spectrum acquisitions demonstrates a commitment to future growth and competitive positioning. Despite significant debt obligations and ongoing capital expenditures, T-Mobile's strategic initiatives appear to be resonating with customers and driving positive financial results, positioning it as a formidable competitor in the U.S. wireless market.
Feb 19, 2015
2013
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2013
T-Mobile US, Inc.'s 2013 10-K filing reveals a transformative year marked by the significant business combination with MetroPCS on April 30, 2013. This merger aimed to bolster T-Mobile's competitive position by expanding its scale, spectrum holdings, and financial resources. The "Un-carrier" strategy, launched in March 2013, has been a key driver of growth, introducing customer-centric initiatives like Simple Choice plans (no annual contracts, phone financing) and JUMP! (device upgrades), which have resonated positively with the market, evidenced by a substantial increase in net customer additions and a decrease in churn. Financially, 2013 saw a considerable increase in total revenues, driven by both the MetroPCS acquisition and organic growth in branded prepaid and equipment sales. However, this growth was accompanied by increased capital expenditures, primarily for 4G LTE network modernization. While the company achieved net income in 2013 after significant losses in prior years (largely due to impairment charges in 2012), its substantial debt load remains a critical factor for investors to monitor. The company's strategic focus on network expansion and customer acquisition through its "Un-carrier" approach positions it for future growth, but investors should remain aware of the competitive landscape and ongoing integration efforts.
Feb 25, 2014
2012
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2012
MetroPCS Communications, Inc. (NYSE: PCS) reported its 2012 Form 10-K, filed March 1, 2013, describing a business that is the fifth-largest facilities-based wireless provider in the U.S. by customers, with about 8.9 million customers at December 31, 2012 and service in 13 major metropolitan areas. Full-year 2012 total revenue rose 5% to $5.10 billion, operating income rose 10% to $824 million, and net income rose 31% to $394 million. Adjusted EBITDA reached $1.51 billion, up from $1.33 billion. Growth was not the driver, however: the company lost about 460,000 net customers in 2012 after adding 1.19 million in 2011, as management prioritized profitability and cash flow over subscriber growth, and gross additions fell 37%. The filing is dominated by the pending Business Combination Agreement with Deutsche Telekom's T-Mobile USA, signed October 3, 2012. Under the deal, MetroPCS will pay stockholders a $1.5 billion cash recapitalization, effect a 1-for-2 reverse split, and issue Deutsche Telekom 74% of the combined company, leaving existing holders with 26%. Deutsche Telekom would also receive up to $18.5 billion of senior notes. The company would be renamed T-Mobile US, with Deutsche Telekom controlling the board and major decisions. Closing is expected in the first half of 2013, subject to antitrust, FCC, CFIUS, and stockholder approvals. Termination fees run $150 million payable by MetroPCS and $250 million payable by Deutsche Telekom if regulatory approval fails. Several lawsuits challenging the deal are pending in Delaware and Texas. For investors, the key tension is between solid 2012 earnings and cash generation on one side and a shrinking subscriber base and a transaction that transfers control and sharply increases leverage on the other. Operating cash flow was $1.18 billion, and cash and short-term investments were $2.6 billion, with capital expenditures of $846 million. Stock price was $10.03 at January 31, 2013, and the stock traded between roughly $5.59 and $13.57 during 2012.
Mar 1, 2013
2011
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2011
This filing is MetroPCS Communications, Inc.'s 10-K for fiscal year 2011, filed February 29, 2012 (the document text is labeled as MetroPCS, not T-Mobile US; TMUS is the ticker that MetroPCS later adopted after its 2013 merger with T-Mobile USA, so the ticker in the request does not match this filing's company). The company is the fifth largest facilities-based wireless provider in the U.S. by customers, serving 9.3 million customers in 13 selected metropolitan areas on a prepaid, flat-rate, no-long-term-contract model. Results improved meaningfully: total revenues rose 19% to $4.85 billion, net income increased 56% to $301.3 million, and Adjusted EBITDA reached $1.33 billion, up from $1.18 billion. Service revenue growth of 20% was driven by 1.2 million net customer additions and a $0.78 rise in ARPU to $40.57. The balance sheet strengthened through debt-funded growth. Cash and short-term investments rose to $2.24 billion, while long-term debt increased to $4.74 billion after new Tranche B-3 term loans and the 6 5/8% notes were issued and the 9 1/4% notes were retired. Capital expenditures were $890 million, and management guided 2012 capex to $900 million to $1.0 billion. Unit economics showed some pressure: churn rose to 3.8% from 3.6%, and cost per gross addition increased to $173 from $157 on heavier promotional activity. Key risks for investors include intense competition from the four national carriers and MVNOs, limited spectrum relative to rivals (average about 22 MHz paired in major markets), dependence on roaming agreements and a single network vendor for CDMA, the lack of access to the iPhone, and exposure to FCC regulatory and net neutrality proceedings. The company reported effective internal control over financial reporting and has never paid a regular dividend.
Feb 29, 2012
2010
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2010
This 10-K is from MetroPCS Communications, Inc. (NYSE: PCS), filed March 1, 2011 for fiscal 2010, not T-Mobile US (TMUS) as the request states. MetroPCS is the fifth-largest facilities-based U.S. wireless carrier by subscribers and sells flat-rate, unlimited, prepaid (pay-in-advance) plans without long-term contracts. Growth was strong in 2010: total revenues rose 17% to $4.07 billion, service revenues rose 18% to $3.69 billion, and income from operations rose 34% to $718.9 million. Net income increased 9% to $193.4 million, held down by a $143.6 million loss on debt extinguishment and a 38.1% effective tax rate. Consolidated Adjusted EBITDA, the metric used in its credit facility, grew to $1.18 billion from $956 million. Subscriber growth and churn improved. The company ended 2010 with 8.16 million customers, after 1.52 million net additions (about 23% growth). Average monthly churn fell to 3.6% from 5.5%, helped by its tax-inclusive 'Wireless for All' plans. Offsetting this, ARPU declined to $39.79 from $40.68, and cost per gross addition rose to $157.26 from $145.79 on heavier promotional activity. Cost per user rose to $18.49 from $17.23, reflecting upgrade subsidies and 4G LTE network costs. The company launched 4G LTE in Las Vegas and Dallas/Fort Worth in September 2010, extended it to most markets by year-end, and expanded further in January 2011. Liquidity and leverage were managed actively. Operating cash flow was $994.5 million and capital expenditures were $790.4 million, leaving about $1.17 billion in cash and short-term investments. In 2010 the company refinanced its 9 1/4% senior notes with $1.0 billion of 7 7/8% notes due 2018 and $1.0 billion of 6 5/8% notes due 2020. Total debt was about $3.78 billion, and the senior secured leverage ratio was 1.54x against a covenant maximum of 4.5x. Key risks include intense competition from larger carriers, reliance on roaming agreements and a few key vendors, net neutrality and FCC regulatory exposure, legal challenges to the Auction 66 and 73 spectrum licenses (about $1.7 billion combined), and a pending securities class action.
Mar 1, 2011
2009
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2009
MetroPCS Communications (NYSE: PCS) ended 2009 with 6.64 million subscribers, up 24% year over year, and reported revenue of $3.48 billion (+26%) and net income of $176.8 million (+18%). Growth is concentrated in the Core Markets (Atlanta, Dallas/Ft. Worth, Detroit, Las Vegas, Los Angeles, Miami, Orlando/Jacksonville, Sacramento, San Francisco, Tampa/Sarasota), which generated $1.16 billion of Adjusted EBITDA at a 40.1% margin. The Northeast Markets (New York, Boston, Philadelphia) are a heavy drag, with a $205 million Adjusted EBITDA deficit as they ramp up after launch. Consolidated Adjusted EBITDA rose to $956 million from $783 million. The key pressures are rising churn, which reached 5.5% from 4.7%, and higher acquisition costs, with CPGA up to $145.79 from $127.21. ARPU slipped to $40.68 from $41.39 as customers shifted to family and promotional plans. Net customer additions fell to 1.27 million from 1.40 million, which management attributes to the economy and competition. Operating cash flow nearly doubled to $899 million, but capital expenditures of $832 million and interest expense of $270 million (up 51%) absorbed much of it. Total debt is $3.6 billion, and the senior secured leverage ratio is 1.67x against a covenant maximum of 4.5x. Investors should also weigh material contingent risks. A securities class action was filed in December 2009. FCC licenses from Auctions 66 and 73 ($1.4 billion and $313 million) face legal challenges that could lead to revocation. The Royal Street Communications structure, in which MetroPCS holds an 85% non-controlling interest and has lent Royal Street about $1.1 billion (with a further $874 million commitment added in February 2010), raises designated-entity compliance questions. The company is also shifting to LTE, guided to 2010 capex of $600 to $800 million, and has signed a spectrum exchange with another carrier.
Mar 1, 2010
2008
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2008
MetroPCS Communications (NYSE: PCS) reported strong 2008 results driven by rapid subscriber growth in its prepaid, flat-rate, unlimited wireless service. Total revenues rose 23% to $2.75 billion and service revenues grew 27% to $2.44 billion. Net income increased 49% to $149.4 million, and income from operations reached $467.8 million. Customers ended the year at 5.37 million, up 35%, with Expansion Markets (Boston, New York, Las Vegas, Philadelphia, Dallas, Detroit, Los Angeles, Orlando, Tampa) contributing most of the growth. Expansion Markets Adjusted EBITDA turned positive at $62.8 million, while Core Markets generated $720.3 million. The balance sheet is heavily leveraged but financed for growth. Long-term debt was about $3.07 billion, consisting of a $1.4 billion 9.25% senior notes issue and a $1.6 billion senior secured term loan. Cash fell to $698 million from $1.47 billion as capital expenditures reached $955 million and $1.3 billion was spent on FCC licenses, including the 700 MHz license. A $550 million add-on notes offering in January 2009 provides additional liquidity. Management guides 2009 capital expenditures to $0.7 to $0.9 billion and plans to cover about 40 million people during 2009-2010. Key risks for investors include heavy dependence on Royal Street Communications, an 85% non-controlling interest the company cannot control. Its FCC licenses from Auction 66 and Auction 73 (about $1.7 billion combined) face legal challenges that could lead to revocation. Revenue quality is also a concern: ARPU declined to $41.39 from $43.31 as customers shifted to Family Plans, and churn is elevated at 4.7% monthly. The company also relies on a single infrastructure vendor, Alcatel-Lucent, and is migrating its billing system to Amdocs.
Mar 2, 2009
2007
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2007
This 10-K covers MetroPCS Communications, Inc. (ticker PCS on the NYSE, which the filing refers to in the TMUS-era context you named) for fiscal 2007. Note the filing itself is MetroPCS's report, not T-Mobile US; MetroPCS later merged with T-Mobile USA in 2013 to form the current T-Mobile US, Inc. The company is a prepaid-style, flat-rate, no-contract wireless carrier serving eight metro areas, with about 4.0 million customers at year-end 2007 (up 35%). FY2007 total revenues rose 45% to $2.24 billion and income from operations rose 94% to $460 million. Net income grew 87% to $100.4 million, but was held down by a $97.8 million impairment on auction rate securities and higher interest expense of $201.7 million, as average debt rose to about $2.8 billion. Growth was driven by the Expansion Markets, where service revenue more than tripled to $504 million and Adjusted EBITDA turned positive at $12.9 million after a $97.2 million deficit in 2006. Core Markets remained the profit engine, with Adjusted EBITDA of $654 million (46% of service revenue). Consolidated Adjusted EBITDA reached $667 million, and operating cash flow was $589 million. The company completed its IPO in April 2007, raising about $818 million in net proceeds, and ended the year with $1.47 billion in cash and equivalents and $1.85 billion in stockholders' equity. Key risks for investors include roughly $3.0 billion of debt, the build-out of roughly $1.4 billion of Auction 66 AWS spectrum (with capex guided to $1.1 to $1.3 billion for 2008), dependence on a single infrastructure vendor (Alcatel-Lucent), the Verisign billing-vendor transition, patent litigation with Leap and Freedom Wireless, and a pending FCC challenge to the Auction 66 licenses. Because the company offers unlimited flat-rate plans with no long-term contracts, churn runs around 4.7% monthly, which is structurally higher than traditional carriers.
Feb 29, 2008
2006
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2006
MetroPCS Communications, Inc. (TMUS predecessor; ticker PCS on NYSE after its pending IPO) reported strong 2006 operating growth in its 10-K filed March 30, 2007. Total revenues rose 49% to $1.55 billion and service revenues rose 48% to $1.29 billion, driven by customer growth to roughly 2.94 million (up 53%). Core Markets Adjusted EBITDA increased 56% to $492.8 million, with a 43.3% margin on service revenue. Net income fell 73% to $53.8 million, but that comparison is distorted by the 2005 $228.2 million pre-tax gain on a spectrum sale; excluding that gain, net income declined about 10%, largely because of rising losses in the Expansion Markets, where Adjusted EBITDA was a deficit of $97.2 million. The balance sheet changed substantially during the year. The company spent about $1.4 billion on AWS spectrum in FCC Auction 66, and total debt rose to $2.6 billion, consisting of a $1.6 billion senior secured term loan and $1.0 billion of 9 1/4% senior notes. Interest expense more than doubled to $116 million, and the company recorded $51.5 million in debt extinguishment losses. Capital expenditures were $550.7 million, and management guides to about $650 million in 2007 for the Core and Expansion Markets, plus $175 million for Auction 66 markets. Investors should weigh several risks. The company depends on a single infrastructure vendor (Lucent/Alcatel-Lucent), is subject to a pending patent suit from Leap Wireless, and faces legal and regulatory uncertainty around the Auction 66 licenses (a Third Circuit appeal could revoke them) and the Royal Street designated-entity arrangement. The company also disclosed past material weaknesses in internal controls and a late Form 10 registration, which created rescission exposure of about $2.6 million.
Mar 30, 2007
2004
T-Mobile US, Inc. Annual Report, Year Ended Dec 31, 2004
This combined Form 10-K from MetroPCS Communications, Inc. and MetroPCS, Inc. covers fiscal year 2004 and is filed late, after a restatement of 2002 and 2003 results following an independent investigation into revenue understatement and material weaknesses in internal controls. The filing is a catch-up report: the company's reporting obligation ended, and it never issued public equity. The company is a no-contract, flat-rate, prepaid wireless carrier in selected metro areas (San Francisco, Miami, Tampa-Sarasota, Atlanta, Sacramento, Dallas-Fort Worth, Detroit) with about 1.4 million customers at year-end 2004, up 43%. Full-year 2004 revenue was $748.2 million (up 66%), and net income was $64.9 million, versus $15.4 million restated for 2003. Average monthly churn was 4.92%, ARPU rose to $41.13, and CPGA was $103.78. Cash flow from operations was $150.4 million, while capex was $250.8 million. The balance sheet at year-end 2004 shows $22.5 million in cash, $37.0 million in short-term investments, $636.4 million in net property and equipment, and $154.1 million in PCS licenses, against $185.0 million of debt including $150 million in 10¾% Senior Notes. Equity was $125.4 million. The filing is backward-looking in several respects: the company refinanced its debt in 2005 with $900 million of secured credit facilities, repurchased the Senior Notes, and subsequently completed Royal Street spectrum transactions. Investors should note that the filing contains significant forward-looking risks, including FCC designated-entity rule changes affecting the Royal Street arrangement, a pending AWS auction, dependence on a single infrastructure vendor (Lucent), and roaming and intercarrier compensation disputes. The filing also documents governance and control weaknesses: management concluded that disclosure controls were not effective as of December 31, 2004, and five material weaknesses were identified in IT, accounting, tone at the top, revenue reporting, and income taxes. Auditor PricewaterhouseCoopers was dismissed in January 2006 and replaced by Deloitte & Touche. There is no public trading market for the equity, and the company has not paid dividends.
May 12, 2006