Attached files
| file | filename |
|---|---|
| 8-K - AT&T INC. 3RD QRT 2011 EARNINGS RELEASE 8-K - AT&T INC. | q3earning8k.htm |
| EX-99.1 - PRESS RELEASE - AT&T INC. | ex99_1.htm |
| EX-99.3 - DISCUSSION OF EBITDA AND FREE CASH FLOW - AT&T INC. | ex99_3.htm |
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Financial Data
|
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AT&T Inc.
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Consolidated Statements of Income
|
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Dollars in millions except per share amounts
|
||||||||||||||||||||||||
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Unaudited
|
Three Months Ended
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Nine Months Ended
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||||||||||||||||||||||
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9/30/2011
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9/30/2010
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% Chg
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9/30/2011
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9/30/2010
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% Chg
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Operating Revenues
|
||||||||||||||||||||||||
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Wireless service
|
$ | 14,261 | $ | 13,675 | 4.3 | % | $ | 42,379 | $ | 39,711 | 6.7 | % | ||||||||||||
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Data
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7,472 | 6,947 | 7.6 | % | 22,008 | 20,464 | 7.5 | % | ||||||||||||||||
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Voice
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6,243 | 6,978 | -10.5 | % | 19,136 | 21,685 | -11.8 | % | ||||||||||||||||
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Directory
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803 | 961 | -16.4 | % | 2,512 | 3,009 | -16.5 | % | ||||||||||||||||
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Other
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2,699 | 3,020 | -10.6 | % | 8,185 | 8,050 | 1.7 | % | ||||||||||||||||
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Total Operating Revenues
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31,478 | 31,581 | -0.3 | % | 94,220 | 92,919 | 1.4 | % | ||||||||||||||||
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Operating Expenses
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||||||||||||||||||||||||
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Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
|
13,165 | 13,605 | -3.2 | % | 39,900 | 38,440 | 3.8 | % | ||||||||||||||||
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Selling, general and administrative
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7,460 | 7,672 | -2.8 | % | 22,308 | 22,522 | -1.0 | % | ||||||||||||||||
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Depreciation and amortization
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4,618 | 4,873 | -5.2 | % | 13,804 | 14,472 | -4.6 | % | ||||||||||||||||
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Total Operating Expenses
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25,243 | 26,150 | -3.5 | % | 76,012 | 75,434 | 0.8 | % | ||||||||||||||||
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Operating Income
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6,235 | 5,431 | 14.8 | % | 18,208 | 17,485 | 4.1 | % | ||||||||||||||||
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Interest Expense
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889 | 729 | 21.9 | % | 2,583 | 2,248 | 14.9 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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193 | 217 | -11.1 | % | 649 | 629 | 3.2 | % | ||||||||||||||||
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Other Income (Expense) - Net
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46 | 124 | -62.9 | % | 132 | 825 | -84.0 | % | ||||||||||||||||
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Income from Continuing Operations Before Income Taxes
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5,585 | 5,043 | 10.7 | % | 16,406 | 16,691 | -1.7 | % | ||||||||||||||||
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Income Tax (Benefit) Expense
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1,899 | (6,573 | ) | - | 5,594 | (1,550 | ) | - | ||||||||||||||||
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Income from Continuing Operations
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3,686 | 11,616 | -68.3 | % | 10,812 | 18,241 | -40.7 | % | ||||||||||||||||
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Income from Discontinued Operations, net of tax
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- | 780 | - | - | 777 | - | ||||||||||||||||||
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Net Income
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3,686 | 12,396 | -70.3 | % | 10,812 | 19,018 | -43.1 | % | ||||||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(63 | ) | (77 | ) | 18.2 | % | (190 | ) | (243 | ) | 21.8 | % | ||||||||||||
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Net Income Attributable to AT&T
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$ | 3,623 | $ | 12,319 | -70.6 | % | $ | 10,622 | $ | 18,775 | -43.4 | % | ||||||||||||
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Basic Earnings Per Share from Continuing
Operations Attributable to AT&T
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$ | 0.61 | $ | 1.95 | -68.7 | % | $ | 1.79 | $ | 3.05 | -41.3 | % | ||||||||||||
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Basic Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | 0.13 | - | - | 0.13 | - | ||||||||||||||||||
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Basic Earnings Per Share Attributable to AT&T
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$ | 0.61 | $ | 2.08 | -70.7 | % | $ | 1.79 | $ | 3.18 | -43.7 | % | ||||||||||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,936 | 5,909 | 0.5 | % | 5,931 | 5,908 | 0.4 | % | ||||||||||||||||
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Diluted Earnings Per Share from Continuing
Operations Attributable to AT&T
|
$ | 0.61 | $ | 1.94 | -68.6 | % | $ | 1.79 | $ | 3.03 | -40.9 | % | ||||||||||||
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Diluted Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | 0.13 | - | - | 0.13 | - | ||||||||||||||||||
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Diluted Earnings Per Share Attributable to AT&T
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$ | 0.61 | $ | 2.07 | -70.5 | % | $ | 1.79 | $ | 3.16 | -43.4 | % | ||||||||||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,954 | 5,938 | 0.3 | % | 5,950 | 5,937 | 0.2 | % | ||||||||||||||||
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Financial Data
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AT&T Inc.
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Statements of Segment Income
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Dollars in millions
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Unaudited
|
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Three Months Ended
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Nine Months Ended
|
|||||||||||||||||||||||
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Wireless
|
9/30/2011
|
9/30/2010
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% Chg
|
9/30/2011
|
9/30/2010
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% Chg
|
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Segment Operating Revenues
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Service
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$ | 14,261 | $ | 13,675 | 4.3 | % | $ | 42,379 | $ | 39,711 | 6.7 | % | ||||||||||||
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Equipment
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1,345 | 1,505 | -10.6 | % | 4,138 | 3,608 | 14.7 | % | ||||||||||||||||
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Total Segment Operating Revenues
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15,606 | 15,180 | 2.8 | % | 46,517 | 43,319 | 7.4 | % | ||||||||||||||||
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Segment Operating Expenses
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Operations and support
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9,367 | 10,032 | -6.6 | % | 29,007 | 26,758 | 8.4 | % | ||||||||||||||||
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Depreciation and amortization
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1,619 | 1,640 | -1.3 | % | 4,737 | 4,776 | -0.8 | % | ||||||||||||||||
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Total Segment Operating Expenses
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10,986 | 11,672 | -5.9 | % | 33,744 | 31,534 | 7.0 | % | ||||||||||||||||
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Segment Operating Income
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4,620 | 3,508 | 31.7 | % | 12,773 | 11,785 | 8.4 | % | ||||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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(7 | ) | (6 | ) | -16.7 | % | (19 | ) | 14 | - | ||||||||||||||
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Segment Income
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$ | 4,613 | $ | 3,502 | 31.7 | % | $ | 12,754 | $ | 11,799 | 8.1 | % | ||||||||||||
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Segment Operating Income Margin
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29.6 |
%
|
23.1 |
%
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27.5 |
%
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27.2 |
%
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||||||||||||||||
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Wireline
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Segment Operating Revenues
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Data
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$ | 7,472 | $ | 6,947 | 7.6 | % | $ | 22,008 | $ | 20,464 | 7.5 | % | ||||||||||||
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Voice
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6,243 | 6,978 | -10.5 | % | 19,136 | 21,685 | -11.8 | % | ||||||||||||||||
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Other
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1,246 | 1,379 | -9.6 | % | 3,702 | 4,023 | -8.0 | % | ||||||||||||||||
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Total Segment Operating Revenues
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14,961 | 15,304 | -2.2 | % | 44,846 | 46,172 | -2.9 | % | ||||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,259 | 10,220 | 0.4 | % | 30,629 | 31,021 | -1.3 | % | ||||||||||||||||
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Depreciation and amortization
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2,892 | 3,099 | -6.7 | % | 8,726 | 9,280 | -6.0 | % | ||||||||||||||||
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Total Segment Operating Expenses
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13,151 | 13,319 | -1.3 | % | 39,355 | 40,301 | -2.3 | % | ||||||||||||||||
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Segment Operating Income
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1,810 | 1,985 | -8.8 | % | 5,491 | 5,871 | -6.5 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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- | 2 | - | - | 7 | - | ||||||||||||||||||
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Segment Income
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$ | 1,810 | $ | 1,987 | -8.9 | % | $ | 5,491 | $ | 5,878 | -6.6 | % | ||||||||||||
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Segment Operating Income Margin
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12.1 |
%
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13.0 |
%
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12.2 |
%
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12.7 |
%
|
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Advertising Solutions
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Segment Operating Revenues
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$ | 803 | $ | 961 | -16.4 | % | $ | 2,512 | $ | 3,009 | -16.5 | % | ||||||||||||
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Segment Operating Expenses
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Operations and support
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553 | 631 | -12.4 | % | 1,706 | 1,957 | -12.8 | % | ||||||||||||||||
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Depreciation and amortization
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94 | 123 | -23.6 | % | 301 | 393 | -23.4 | % | ||||||||||||||||
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Total Segment Operating Expenses
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647 | 754 | -14.2 | % | 2,007 | 2,350 | -14.6 | % | ||||||||||||||||
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Segment Income
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$ | 156 | $ | 207 | -24.6 | % | $ | 505 | $ | 659 | -23.4 | % | ||||||||||||
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Segment Income Margin
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19.4 |
%
|
21.5 |
%
|
20.1 |
%
|
21.9 |
%
|
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|
Other
|
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Segment Operating Revenues
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$ | 108 | $ | 136 | -20.6 | % | $ | 345 | $ | 419 | -17.7 | % | ||||||||||||
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Segment Operating Expenses
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459 | 405 | 13.3 | % | 906 | 1,249 | -27.5 | % | ||||||||||||||||
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Segment Operating Income (Loss)
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(351 | ) | (269 | ) | -30.5 | % | (561 | ) | (830 | ) | 32.4 | % | ||||||||||||
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Equity in Net Income of Affiliates
|
200 | 221 | -9.5 | % | 668 | 608 | 9.9 | % | ||||||||||||||||
|
Segment Income (Loss) from Continuing Operations
|
$ | (151 | ) | $ | (48 | ) | - | $ | 107 | $ | (222 | ) | - | |||||||||||
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Financial Data
|
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AT&T Inc.
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Consolidated Balance Sheets
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Dollars in millions except per share amounts
|
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|
9/30/11
|
12/31/10
|
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Unaudited
|
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|
Assets
|
||||||||
|
Current Assets
|
||||||||
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Cash and cash equivalents
|
$ | 10,762 | $ | 1,437 | ||||
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Accounts receivable - net of allowances for
|
||||||||
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doubtful accounts of $888 and $957
|
13,377 | 13,610 | ||||||
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Prepaid expenses
|
1,507 | 1,458 | ||||||
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Deferred income taxes
|
1,101 | 1,170 | ||||||
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Other current assets
|
1,858 | 2,276 | ||||||
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Total current assets
|
28,605 | 19,951 | ||||||
|
Property, Plant and Equipment - Net
|
105,786 | 103,196 | ||||||
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Goodwill
|
73,590 | 73,601 | ||||||
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Licenses
|
50,406 | 50,372 | ||||||
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Customer Lists and Relationships - Net
|
3,175 | 4,708 | ||||||
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Other Intangible Assets - Net
|
5,394 | 5,440 | ||||||
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Investments in Equity Affiliates
|
4,483 | 4,515 | ||||||
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Other Assets
|
6,214 | 6,705 | ||||||
|
Total Assets
|
$ | 277,653 | $ | 268,488 | ||||
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Liabilities and Stockholders' Equity
|
||||||||
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Current Liabilities
|
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Debt maturing within one year
|
$ | 8,900 | $ | 7,196 | ||||
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Accounts payable and accrued liabilities
|
17,860 | 20,055 | ||||||
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Advanced billing and customer deposits
|
3,794 | 4,086 | ||||||
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Accrued taxes
|
929 | 72 | ||||||
|
Dividends payable
|
2,548 | 2,542 | ||||||
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Total current liabilities
|
34,031 | 33,951 | ||||||
|
Long-Term Debt
|
62,326 | 58,971 | ||||||
|
Deferred Credits and Other Noncurrent Liabilities
|
||||||||
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Deferred income taxes
|
26,446 | 22,070 | ||||||
|
Postemployment benefit obligation
|
28,190 | 28,803 | ||||||
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Other noncurrent liabilities
|
12,778 | 12,743 | ||||||
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Total deferred credits and other noncurrent liabilities
|
67,414 | 63,616 | ||||||
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Stockholders' Equity
|
||||||||
|
Common stock
|
6,495 | 6,495 | ||||||
|
Additional paid-in capital
|
91,455 | 91,731 | ||||||
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Retained earnings
|
34,758 | 31,792 | ||||||
|
Treasury stock
|
(20,770 | ) | (21,083 | ) | ||||
|
Accumulated other comprehensive income
|
1,677 | 2,712 | ||||||
|
Noncontrolling interest
|
267 | 303 | ||||||
|
Total stockholders' equity
|
113,882 | 111,950 | ||||||
|
Total Liabilities and Stockholders' Equity
|
$ | 277,653 | $ | 268,488 | ||||
|
Financial Data
|
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|
AT&T Inc.
|
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Consolidated Statements of Cash Flows
|
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Dollars in millions
|
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|
Unaudited
|
Nine months ended September 30,
|
||||||
|
2011
|
2010
|
||||||
|
Operating Activities
|
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|
Net income
|
$ | 10,812 | $ | 19,018 | |||
|
Adjustments to reconcile net income to
|
|||||||
|
net cash provided by operating activities:
|
|||||||
|
Depreciation and amortization
|
13,804 | 14,472 | |||||
|
Undistributed earnings from investments in equity affiliates
|
(539 | ) | (531 | ) | |||
|
Provision for uncollectible accounts
|
805 | 973 | |||||
|
Deferred income tax expense and noncurrent
|
|||||||
|
unrecognized tax benefits
|
4,942 | (4,184 | ) | ||||
|
Net gain from impairment and sale of investments
|
(57 | ) | (746 | ) | |||
|
Income from discontinued operations
|
- | (777 | ) | ||||
|
Changes in operating assets and liabilities:
|
|||||||
|
Accounts receivable
|
(573 | ) | 266 | ||||
|
Other current assets
|
439 | 495 | |||||
|
Accounts payable and accrued liabilities
|
(1,630 | ) | (2,861 | ) | |||
|
Net income attributable to noncontrolling interest
|
(190 | ) | (243 | ) | |||
|
Other - net
|
(663 | ) | (532 | ) | |||
|
Total adjustments
|
16,338 | 6,332 | |||||
|
Net Cash Provided by Operating Activities
|
27,150 | 25,350 | |||||
|
Investing Activities
|
|||||||
|
Construction and capital expenditures:
|
|||||||
|
Capital expenditures
|
(14,625 | ) | (13,170 | ) | |||
|
Interest during construction
|
(119 | ) | (577 | ) | |||
|
Acquisitions, net of cash acquired
|
(430 | ) | (2,615 | ) | |||
|
Dispositions
|
76 | 1,821 | |||||
|
(Purchases) and sales of securities, net
|
45 | (437 | ) | ||||
|
Other
|
28 | 22 | |||||
|
Net Cash Used in Investing Activities
|
(15,025 | ) | (14,956 | ) | |||
|
Financing Activities
|
|||||||
|
Net change in short-term borrowings with
|
|||||||
|
original maturities of three months or less
|
(1,620 | ) | (33 | ) | |||
|
Issuance of long-term debt
|
7,935 | 2,235 | |||||
|
Repayment of long-term debt
|
(1,298 | ) | (5,280 | ) | |||
|
Issuance of treasury shares
|
216 | 24 | |||||
|
Dividends paid
|
(7,627 | ) | (7,436 | ) | |||
|
Other
|
(406 | ) | (399 | ) | |||
|
Net Cash Used in Financing Activities
|
(2,800 | ) | (10,889 | ) | |||
|
Net increase (decrease) in cash and cash equivalents
|
9,325 | (495 | ) | ||||
|
Cash and cash equivalents beginning of year
|
1,437 | 3,741 | |||||
|
Cash and Cash Equivalents End of Period
|
$ | 10,762 | $ | 3,246 | |||
|
Financial Data
|
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|
AT&T Inc.
|
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Supplementary Operating and Financial Data
|
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|
Dollars in millions except per share amounts
|
||||||||||||||||||||||||||
|
Unaudited
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||||||||||
|
9/30/2011
|
9/30/2010
|
% Chg
|
9/30/2011
|
9/30/2010
|
% Chg
|
|||||||||||||||||||||
|
Wireless
|
||||||||||||||||||||||||||
|
Volumes (000)
|
||||||||||||||||||||||||||
|
Total
|
100,738 | 92,761 | 8.6 | % | ||||||||||||||||||||||
|
Postpaid6
|
68,614 | 67,688 | 1.4 | % | ||||||||||||||||||||||
|
Prepaid6
|
7,059 | 6,209 | 13.7 | % | ||||||||||||||||||||||
|
Reseller6
|
13,028 | 11,021 | 18.2 | % | ||||||||||||||||||||||
|
Connected Devices6
|
12,037 | 7,843 | 53.5 | % | ||||||||||||||||||||||
|
Wireless Net Adds (000)
|
||||||||||||||||||||||||||
|
Total
|
2,123 | 2,631 | -19.3 | % | 5,202 | 6,050 | -14.0 | % | ||||||||||||||||||
|
Postpaid6
|
319 | 745 | -57.2 | % | 712 | 1,753 | -59.4 | % | ||||||||||||||||||
|
Prepaid6
|
293 | 321 | -8.7 | % | 515 | 645 | -20.2 | % | ||||||||||||||||||
|
Reseller6
|
473 | 406 | 16.5 | % | 1,282 | 545 | - | |||||||||||||||||||
|
Connected Devices6
|
1,038 | 1,159 | -10.4 | % | 2,693 | 3,107 | -13.3 | % | ||||||||||||||||||
|
M&A Activity, Partitioned Customers and Other Adjs.
|
- | - | - | 1,591 | ||||||||||||||||||||||
|
Wireless Churn
|
||||||||||||||||||||||||||
|
Postpaid Churn6
|
1.15 | % | 1.14 | % |
1 BP
|
1.16 | % | 1.08 | % |
8 BP
|
||||||||||||||||
|
Total Churn6
|
1.28 | % | 1.32 | % |
-4 BP
|
1.36 | % | 1.30 | % |
6 BP
|
||||||||||||||||
|
Other
|
||||||||||||||||||||||||||
|
Licensed POPs (000,000)
|
313 | 308 | 1.6 | % | ||||||||||||||||||||||
|
In-Region Wireline1
|
||||||||||||||||||||||||||
|
Voice
|
||||||||||||||||||||||||||
|
Total Wireline Voice Connections
|
40,098 | 44,796 | -10.5 | % | ||||||||||||||||||||||
|
Net Change
|
(1,200 | ) | (1,262 | ) | 4.9 | % | (3,465 | ) | (3,692 | ) | 6.1 | % | ||||||||||||||
|
Broadband
|
||||||||||||||||||||||||||
|
Total Wireline Broadband Connections
|
16,476 | 16,100 | 2.3 | % | ||||||||||||||||||||||
|
Net Change
|
3 | 148 | -98.0 | % | 167 | 311 | -46.3 | % | ||||||||||||||||||
|
Video
|
||||||||||||||||||||||||||
|
U-verse
|
3,583 | 2,741 | 30.7 | % | ||||||||||||||||||||||
|
Satellite
|
1,809 | 1,994 | -9.3 | % | ||||||||||||||||||||||
|
Total Video Connections
|
5,392 | 4,735 | 13.9 | % | ||||||||||||||||||||||
|
Net Change
|
133 | 177 | -24.9 | % | 475 | 496 | -4.2 | % | ||||||||||||||||||
|
Consumer Revenue Connections
|
||||||||||||||||||||||||||
|
Broadband3
|
14,530 | 14,093 | 3.1 | % | ||||||||||||||||||||||
|
Video Connections4
|
5,381 | 4,732 | 13.7 | % | ||||||||||||||||||||||
|
Voice2
|
21,941 | 24,908 | -11.9 | % | ||||||||||||||||||||||
|
Total Consumer Revenue Connections
|
41,852 | 43,733 | -4.3 | % | ||||||||||||||||||||||
|
Net Change
|
(652 | ) | (529 | ) | -23.3 | % | (1,575 | ) | (1,555 | ) | -1.3 | % | ||||||||||||||
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AT&T Inc.
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Construction and capital expenditures
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Capital expenditures
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$ | 5,220 | $ | 5,314 | -1.8 | % | $ | 14,625 | $ | 13,170 | 11.0 | % | ||||||||||||||
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Interest during construction
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$ | 42 | $ | 198 | -78.8 | % | $ | 119 | $ | 577 | -79.4 | % | ||||||||||||||
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Dividends Declared per Share
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$ | 0.43 | $ | 0.42 | 2.4 | % | $ | 1.29 | $ | 1.26 | 2.4 | % | ||||||||||||||
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End of Period Common Shares Outstanding (000,000)
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5,926 | 5,910 | 0.3 | % | ||||||||||||||||||||||
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Debt Ratio5
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38.5 | % | 37.9 | % |
60 BP
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Total Employees
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256,210 | 267,720 | -4.3 | % | ||||||||||||||||||||||
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1
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In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
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2
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Includes consumer U-verse Voice over Internet Protocol connections of 2,142 as of September 30, 2011.
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3
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Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
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4
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Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
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5
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Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
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6
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Prior year amounts restated to conform to current period reporting methodology.
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Note: For the end of 3Q11, total switched access lines were 37,956, retail business switched access lines totaled 15,951, and wholesale
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and coin switched access lines totaled 2,206.
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Financial Data
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AT&T Inc.
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Non-GAAP Wireless Reconciliation
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Wireless Segment EBITDA
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Dollars in millions
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Unaudited
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Three Months Ended
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9/30/2010
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12/31/2010
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3/31/2011
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6/30/2011
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9/30/2011
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Segment Operating Revenues
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Service
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$ | 13,675 | $ | 13,799 | $ | 13,961 | $ | 14,157 | $ | 14,261 | ||||||||||
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Equipment
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1,505 | 1,382 | 1,348 | 1,445 | 1,345 | |||||||||||||||
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Total Segment Operating Revenues
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15,180 | 15,181 | 15,309 | 15,602 | 15,606 | |||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,032 | 9,988 | 9,858 | 9,782 | 9,367 | |||||||||||||||
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Depreciation and amortization
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1,640 | 1,721 | 1,505 | 1,613 | 1,619 | |||||||||||||||
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Total Segment Operating Expenses
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11,672 | 11,709 | 11,363 | 11,395 | 10,986 | |||||||||||||||
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Segment Operating Income
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3,508 | 3,472 | 3,946 | 4,207 | 4,620 | |||||||||||||||
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Plus: Depreciation and amortization
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1,640 | 1,721 | 1,505 | 1,613 | 1,619 | |||||||||||||||
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EBITDA
|
5,148 | 5,193 | 5,451 | 5,820 | 6,239 | |||||||||||||||
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EBITDA as a % of Service Revenue
|
37.6 | % | 37.6 | % | 39.0 | % | 41.1 | % | 43.7 | % | ||||||||||
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EBITDA is defined as Earnings Before Interest, Taxes, Depreciation and Amortization. Annual Service EBITDA Margin is calculated as the sum of quarterly EBITDA divided by the sum of quarterly Service Revenues.
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Financial Data
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AT&T Inc.
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Non-GAAP Financial Reconciliation
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Free Cash Flow
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Dollars in Millions
|
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Unaudited
|
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Three Months Ended
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Nine Months Ended
|
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September 30,
|
September 30,
|
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2010
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2011
|
2010
|
2011
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Net cash provided by operating activities
|
$ | 9,539 | $ | 10,393 | $ | 25,350 | $ | 27,150 | ||||||||
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Less: Construction and capital expenditures
|
(5,512 | ) | (5,262 | ) | (13,747 | ) | (14,744 | ) | ||||||||
|
Free Cash Flow
|
$ | 4,027 | $ | 5,131 | $ | 11,603 | $ | 12,406 | ||||||||
| Free cash flow is defined as cash from operations minus construction and capital expenditures. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners. | ||||||||||||||||
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Free Cash Flow after Dividends
|
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Dollars in Millions
|
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Unaudited
|
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Three Months Ended
|
Nine Months Ended
|
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September 30,
|
September 30,
|
|||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
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Net cash provided by operating activities
|
$ | 9,539 | $ | 10,393 | $ | 25,350 | $ | 27,150 | ||||||||
|
Less: Construction and capital expenditures
|
(5,512 | ) | (5,262 | ) | (13,747 | ) | (14,744 | ) | ||||||||
|
Free Cash Flow
|
4,027 | 5,131 | 11,603 | 12,406 | ||||||||||||
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Less: Dividends paid
|
(2,476 | ) | (2,545 | ) | (7,436 | ) | (7,627 | ) | ||||||||
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Free Cash Flow After Dividends
|
$ | 1,551 | $ | 2,586 | $ | 4,167 | $ | 4,779 | ||||||||
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Financial Data
|
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|
AT&T Inc.
|
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|
Non-GAAP Financial Reconciliation
|
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Annualized Net Debt-to-EBITDA Ratio
|
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Dollars in millions
|
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Unaudited
|
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Three Months Ended
|
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|
3/31/2011
|
6/30/2011
|
9/30/2011
|
2011 YTD
|
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|
Operating Revenues
|
$ | 31,247 | $ | 31,495 | $ | 31,478 | $ | 94,220 | ||||||||
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Operating Expenses
|
25,439 | 25,330 | 25,243 | 76,012 | ||||||||||||
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Total Operating Income
|
5,808 | 6,165 | 6,235 | 18,208 | ||||||||||||
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Add Back Depreciation and Amortization
|
4,584 | 4,602 | 4,618 | 13,804 | ||||||||||||
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Total Consolidated EBITDA
|
10,392 | 10,767 | 10,853 | 32,012 | ||||||||||||
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Annualized Consolidated EBITDA*
|
42,683 | |||||||||||||||
|
End-of-period current debt
|
8,900 | |||||||||||||||
|
End-of-period long-term debt
|
62,326 | |||||||||||||||
|
Total End-of-Period Debt
|
71,226 | |||||||||||||||
|
(Premiums) Discounts on long-term debt
|
(87 | ) | ||||||||||||||
|
Normalized Debt Balance
|
71,139 | |||||||||||||||
|
Less Cash and Cash Equivalents
|
10,762 | |||||||||||||||
|
Normalized Net Debt Balance
|
60,377 | |||||||||||||||
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Annualized Net Debt-to-EBITDA Ratio
|
1.41 | |||||||||||||||
*EBITDA is annualized by dividing YTD EBITDA by YTD number of quarters and multiplying by four.
Note: 4Q11 EBITDA will exclude the impact of benefit plan actuarial gains/losses in order to better represent AT&T's operational performance.
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