Company: UZF
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000821130-25-000023
Chunk: 78

Company: ARRAY DIGITAL INFRASTRUCTURE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 78
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2022(Dollars in millions)   Third-party revenues$103 $101 $93 2 %8 %Intra-company revenues131 127 123 3 %3 %Total tower revenues234 228 216 3 %5 %System operations (excluding Depreciation, amortization and accretion reported below)78 73 71 6 %2 %Selling, general and administrative32 34 32 (5)%7 %Depreciation, amortization and accretion45 46 45 (1)%1 %(Gain) loss on asset disposals, net1 (2)— N/MN/MTotal operating expenses156 151 148 3 %2 %Operating income$78 $77 $68 2 %13 %Adjusted OIBDA (Non-GAAP)1$126 $121 $113 4 %7 %Adjusted EBITDA (Non-GAAP)1$126 $121 $113 4 %7 %Capital expenditures$23 $31 $28 (24)%9 %

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:

2024-2023 Commentary

Total tower revenues

Total tower revenues increased in 2024 due primarily to an increase in intra-company revenues primarily as a result of an increase in the intra-company rate charged by Towers to Wireless 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 Tower revenues in the periods following the close.

36

Index to MD&A

Total operating expenses

Total operating expenses increased in 2024 due to an increase in System operations expenses as a result of increases in cell site ground rent and maintenance expenses.

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 affect the separation including costs to decommission certain towers and record remaining ground lease obligations on such decom