Company: UZF
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000821130-25-000032
Chunk: 53

Company: ARRAY DIGITAL INFRASTRUCTURE, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 7
Chunk 53
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 in millions)   Third-party revenues$27 $25 6 %Intra-company revenues34 33 3 %Total tower revenues61 58 5 %System operations (excluding Depreciation, amortization and accretion reported below)19 18 4 %Selling, general and administrative10 7 33 %Depreciation, amortization and accretion11 11 5 %Total operating expenses40 36 11 %Operating income$21 $22 (5)%Adjusted OIBDA (Non-GAAP)1$33 $33 (1)%Adjusted EBITDA (Non-GAAP)1$33 $33 (1)%Capital expenditures$2 $4 (42)%

N/M - Percentage change not meaningful

1Refer to Supplemental Information Relating to Non-GAAP Financial Measures within this MD&A for a reconciliation of this measure.

Key components of changes in the statement of operations line items were as follows:

Total tower revenues

Third-party revenues increased for the three months ended March 31, 2025, primarily as a result of new colocations and escalators on renewed leases. 

Intra-company revenues increased for the three months ended March 31, 2025, primarily as a result of rent escalations and an increase in the number of owned towers.

Upon closing of the transaction to dispose of the wireless operations and select spectrum assets to T-Mobile, UScellular expects an increase in Third-party revenues that will be recognized under the Master License Agreement that will go into effect under the Securities Purchase Agreement. However, at such time Intra-company revenues would cease, resulting in significantly lower Total tower revenues in periods following the close.

11

Total operating expenses

Total operating expenses increased for the three months ended March 31, 2025 due primarily to increases in selling, general and administrative expenses as a result of an increase in bad debts expense due to payments received on aged receivables in the first quarter of 2024.

Upon and following closing of the transaction to dispose of the wireless operations and select spectrum assets to T-Mobile, UScellular expects expenses may be incurred to effect the separation including costs to decommission certain towers and record remaining ground lease obligations on such decommissioned towers. These factors and other uncertainties in how the ongoing tower operations will be supported in the long-term may significantly impact operating expenses recorded in periods following the close.

12

Liquidity and Capital Resources 

Sources of