AT&T INC. - FORM 8-K - EX-99.1 - AT&T, INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA

Attached files

file	filename
8-K - AT&T, INC. 2ND QTR 2012 EARNINGS RELEASE 8-K - AT&T INC.	q2earnings801_8k.htm
EX-99.2 - AT&T, INC. UPDATED RECONCILIATION OF CONSOLIDATED OPERATING INCOME EXCLUDING ADVERTISING SOLUTIONS SEGMENT - AT&T INC.	ex99_2.htm

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended										Six Months Ended
		6/30/2012			6/30/2011			% Chg			6/30/2012			6/30/2011			% Chg
Operating Revenues
Wireless service		$	14,765		$	14,157			4.3	%	$	29,331		$	28,118			4.3	%
Data			7,923			7,349			7.8	%		15,718			14,520			8.3	%
Voice			5,697			6,340			-10.1	%		11,590			12,890			-10.1	%
Directory			305			841			-63.7	%		1,049			1,709			-38.6	%
Other			2,885			2,808			2.7	%		5,709			5,505			3.7	%
Total Operating Revenues			31,575			31,495			0.3	%		63,397			62,742			1.0	%

Operating Expenses
Cost of services and sales (exclusive of depreciation and amortization shown separately below)			12,369			12,756			-3.0	%		25,282			25,569			-1.1	%
Selling, general and administrative			7,890			7,972			-1.0	%		16,138			16,014			0.8	%
Depreciation and amortization			4,499			4,602			-2.2	%		9,059			9,186			-1.4	%
Total Operating Expenses			24,758			25,330			-2.3	%		50,479			50,769			-0.6	%
Operating Income			6,817			6,165			10.6	%		12,918			11,973			7.9	%
Interest Expense			941			848			11.0	%		1,800			1,694			6.3	%
Equity in Net Income of Affiliates			132			207			-36.2	%		355			456			-22.1	%
Other Income (Expense) - Net			23			27			-14.8	%		75			86			-12.8	%
Income Before Income Taxes			6,031			5,551			8.6	%		11,548			10,821			6.7	%
Income Tax Expense			2,066			1,893			9.1	%		3,931			3,695			6.4	%
Net Income			3,965			3,658			8.4	%		7,617			7,126			6.9	%
Less: Net Income Attributable to Noncontrolling Interest			(63	)		(67	)		6.0	%		(131	)		(127	)		-3.1	%
Net Income Attributable to AT&T		$	3,902		$	3,591			8.7	%	$	7,486		$	6,999			7.0	%


Basic Earnings Per Share Attributable to AT&T		$	0.67		$	0.60			11.7	%	$	1.27		$	1.18			7.6	%
Weighted Average Common Shares Outstanding (000,000)			5,855			5,932			-1.3	%		5,886			5,929			-0.7	%

Diluted Earnings Per Share Attributable to AT&T		$	0.66		$	0.60			10.0	%	$	1.27		$	1.18			7.6	%
Weighted Average Common Shares Outstanding with Dilution (000,000)			5,876			5,953			-1.3	%		5,907			5,948			-0.7	%

Financial Data

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended									Six Months Ended

Wireless	6/30/2012			6/30/2011			% Chg			6/30/2012			6/30/2011			% Chg
Segment Operating Revenues
Service	$	14,765		$	14,157			4.3	%	$	29,331		$	28,118			4.3	%
Equipment		1,588			1,446			9.8	%		3,158			2,795			13.0	%
Total Segment Operating Revenues		16,353			15,603			4.8	%		32,489			30,913			5.1	%

Segment Operating Expenses
Operations and support		9,705			9,786			-0.8	%		19,788			19,647			0.7	%
Depreciation and amortization		1,696			1,615			5.0	%		3,362			3,121			7.7	%
Total Segment Operating Expenses		11,401			11,401			-			23,150			22,768			1.7	%
Segment Operating Income		4,952			4,202			17.8	%		9,339			8,145			14.7	%
Equity in Net Income (Loss) of Affiliates		(15	)		(7	)		-			(28	)		(11	)		-
Segment Income	$	4,937		$	4,195			17.7	%	$	9,311		$	8,134			14.5	%

Segment Operating Income Margin		30.3	%		26.9	%					28.7	%		26.3	%

Wireline
Segment Operating Revenues
Data	$	7,923		$	7,349			7.8	%	$	15,718		$	14,520			8.3	%
Voice		5,697			6,340			-10.1	%		11,590			12,890			-10.1	%
Other		1,284			1,341			-4.3	%		2,524			2,671			-5.5	%
Total Segment Operating Revenues		14,904			15,030			-0.8	%		29,832			30,081			-0.8	%

Segment Operating Expenses
Operations and support		10,085			10,145			-0.6	%		20,382			20,457			-0.4	%
Depreciation and amortization		2,766			2,876			-3.8	%		5,574			5,834			-4.5	%
Total Segment Operating Expenses		12,851			13,021			-1.3	%		25,956			26,291			-1.3	%
Segment Operating Income		2,053			2,009			2.2	%		3,876			3,790			2.3	%
Equity in Net Income (Loss) of Affiliates		(1	)		-			-			(1	)		-			-
Segment Income	$	2,052		$	2,009			2.1	%	$	3,875		$	3,790			2.2	%

Segment Operating Income Margin		13.8	%		13.4	%					13.0	%		12.6	%

Advertising Solutions
Segment Operating Revenues	$	305		$	841			-63.7	%	$	1,049		$	1,709			-38.6	%

Segment Operating Expenses
Operations and support		226			581			-61.1	%		773			1,153			-33.0	%
Depreciation and amortization		29			101			-71.3	%		106			207			-48.8	%
Total Segment Operating Expenses		255			682			-62.6	%		879			1,360			-35.4	%
Segment Income	$	50		$	159			-68.6	%	$	170		$	349			-51.3	%

Segment Income Margin		16.4	%		18.9	%					16.2	%		20.4	%

Other
Segment Operating Revenues	$	13		$	21			-38.1	%	$	27		$	39			-30.8	%
Segment Operating Expenses		251			226			11.1	%		494			350			41.1	%
Segment Operating Income (Loss)		(238	)		(205	)		-16.1	%		(467	)		(311	)		-50.2	%
Equity in Net Income of Affiliates		148			214			-30.8	%		384			467			-17.8	%
Segment Income (Loss)	$	(90	)	$	9			-		$	(83	)	$	156			-

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions except per share amounts
	6/30/12			12/31/11
	Unaudited

Assets
Current Assets
Cash and cash equivalents	$	2,151		$	3,185
Accounts receivable - net of allowances for
doubtful accounts of $614 and $878		12,430			13,606
Prepaid expenses		1,533			1,155
Deferred income taxes		1,418			1,470
Other current assets		1,624			3,611
Total current assets		19,156			23,027
Property, Plant and Equipment - Net		107,483			107,087
Goodwill		69,763			70,842
Licenses		51,981			51,374
Customer Lists and Relationships - Net		1,881			2,757
Other Intangible Assets - Net		5,045			5,212
Investments in and Advances to Equity Affiliates		4,388			3,718
Other Assets		6,597			6,327
Total Assets	$	266,294		$	270,344

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	3,402		$	3,453
Accounts payable and accrued liabilities		16,298			19,858
Advanced billing and customer deposits		3,743			3,872
Accrued taxes		3,705			1,003
Dividends payable		2,554			2,608
Total current liabilities		29,702			30,794
Long-Term Debt		61,132			61,300
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		26,011			25,748
Postemployment benefit obligation		34,021			34,011
Other noncurrent liabilities		11,849			12,694
Total deferred credits and other noncurrent liabilities		71,881			72,453
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		90,927			91,156
Retained earnings		27,788			25,453
Treasury stock		(24,869	)		(20,750	)
Accumulated other comprehensive income		2,939			3,180
Noncontrolling interest		299			263
Total stockholders' equity		103,579			105,797
Total Liabilities and Stockholders' Equity	$	266,294		$	270,344

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	Six Months Ended June 30,
	2012			2011

Operating Activities
Net income	$	7,617		$	7,126
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		9,059			9,186
Undistributed earnings from investments in equity affiliates		(355	)		(417	)
Provision for uncollectible accounts		572			523
Deferred income tax expense and noncurrent
unrecognized tax benefits		(639	)		2,818
Net loss (gain) from impairment and sale of investments		2			(44	)
Changes in operating assets and liabilities:
Accounts receivable		(220	)		(521	)
Other current assets		1,228			1,007
Accounts payable and accrued liabilities		441			(2,037	)
Other - net		(246	)		(884	)
Total adjustments		9,842			9,631
Net Cash Provided by Operating Activities		17,459			16,757

Investing Activities
Construction and capital expenditures:
Capital expenditures		(8,742	)		(9,405	)
Interest during construction		(130	)		(77	)
Acquisitions, net of cash acquired		(477	)		(62	)
Dispositions		800			30
Sales of securities, net of investment		124			45
Other		-			19
Net Cash Used in Investing Activities		(8,425	)		(9,450	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		-			(1,603	)
Issuance of long-term debt		6,935			2,985
Repayment of long-term debt		(7,035	)		(1,290	)
Purchase of treasury stock		(4,623	)		-
Issuance of treasury stock		376			199
Dividends paid		(5,187	)		(5,082	)
Other		(534	)		(122	)
Net Cash Used in Financing Activities		(10,068	)		(4,913	)
Net (decrease) increase in cash and cash equivalents		(1,034	)		2,394
Cash and cash equivalents beginning of year		3,185			1,437
Cash and Cash Equivalents End of Period	$	2,151		$	3,831

Financial Data

AT&T Inc.
Supplementary Operating and Financial Data
Dollars in millions except per share amounts
Unaudited		Three Months Ended									Six Months Ended
		6/30/2012			6/30/2011			% Chg			6/30/2012			6/30/2011			% Chg

Wireless
Volumes (000)
	Total											105,206			98,615			6.7	%
	Postpaid											69,666			68,353			1.9	%
	Prepaid											7,473			6,750			10.7	%
	Reseller											14,382			12,522			14.9	%
	Connected Devices											13,685			10,990			24.5	%

Wireless Net Adds (000)
	Total		1,266			1,095			15.6	%		1,992			3,079			-35.3	%
	Postpaid		320			331			-3.3	%		507			393			29.0	%
	Prepaid		92			137			-32.8	%		217			222			-2.3	%
	Reseller		472			248			90.3	%		656			809			-18.9	%
	Connected Devices		382			379			0.8	%		612			1,655			-63.0	%
	M&A Activity, Partitioned Customers and Other Adjs.		-			1			-			(33	)		-			-

Wireless Churn
	Postpaid Churn		0.97	%		1.15	%	-18 BP				1.03	%		1.17	%	-14 BP
	Total Churn		1.18	%		1.43	%	-25 BP				1.32	%		1.40	%	-8 BP

Other
	Branded Computing Subscribers1											6,276			4,037			55.5	%
	Licensed POPs (000,000)											313			313			0.0	%

Wireline
Voice
	Total Wireline Voice Connections											36,841			41,298			-10.8	%
	Net Change		(1,037	)		(1,159	)		10.5	%		(2,171	)		(2,265	)		4.2	%

Broadband
	Total Wireline Broadband Connections											16,434			16,473			-0.2	%
	Net Change2		(96	)		(13	)		-			7			164			-95.7	%

Video
	U-verse											4,146			3,407			21.7	%
	Satellite											1,684			1,852			-9.1	%
	Total Video Connections											5,830			5,259			10.9	%
	Net Change		107			168			-36.3	%		274			342			-19.9	%

Consumer Revenue Connections
	Broadband3											14,517			14,520			0.0	%
	Video Connections4											5,810			5,250			10.7	%
	Voice5											19,868			22,735			-12.6	%
Total Consumer Revenue Connections												40,195			42,505			-5.4	%
	Net Change		(643	)		(574	)		-12.0	%		(1,071	)		(922	)		-16.2	%

AT&T Inc.
	Construction and capital expenditures
	Capital expenditures	$	4,481		$	5,272			-15.0	%	$	8,742		$	9,405			-7.0	%
	Interest during construction	$	65		$	42			54.8	%	$	130		$	77			68.8	%
	Dividends Declared per Share	$	0.44		$	0.43			2.3	%	$	0.88		$	0.86			2.3	%
	End of Period Common Shares Outstanding (000,000)											5,805			5,925			-2.0	%
	Debt Ratio6											38.4	%		36.8	%	160 BP
	Total Employees											242,380			258,870			-6.4	%

1	Branded Computing Subscribers includes tablets, tethering plans, aircards, mobile Wi-Fi hot spots and other data-only devices.
2	Prior year amounts restated to conform to current period reporting methodology.
3	Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
4	Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
5	Includes consumer U-verse Voice over Internet Protocol connections of 2,567 as of June 30, 2012.
6	Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
	Note: For the end of 2Q12, total switched access lines were 34,274, retail business switched access lines totaled 14,988, and wholesale
	and coin switched access lines totaled 1,985.

Attached files

AT&T INC. Reports

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AT&T INC. - FORM 8-K - EX-99.1 - AT&T, INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA - July 24, 2012

Attached files

AT&T INC. Reports

Also read