Attached files
| file | filename |
|---|---|
| EX-99.3 - DISCUSSION OF EBITA AND FREE CASH FLOW - AT&T INC. | ex99_3.htm |
| EX-99.1 - PRESS RELEASE - AT&T INC. | ex99_1.htm |
| 8-K - AT&T, INC. 4TH QTR 2012 EARNINGS RELEASE 8-K - AT&T INC. | q4earning8k.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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||||||||||||||||||||||||
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Unaudited
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Three Months Ended
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Twelve Months Ended
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||||||||||||||||||||||
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12/31/2012
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12/31/2011
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% Chg
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12/31/2012
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12/31/2011
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% Chg
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Operating Revenues
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Wireless service
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$ | 14,949 | $ | 14,347 | 4.2 | % | $ | 59,186 | $ | 56,726 | 4.3 | % | ||||||||||||
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Data
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8,103 | 7,581 | 6.9 | % | 31,798 | 29,560 | 7.6 | % | ||||||||||||||||
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Voice
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5,464 | 5,994 | -8.8 | % | 22,619 | 25,126 | -10.0 | % | ||||||||||||||||
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Directory
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- | 781 | - | 1,049 | 3,293 | -68.1 | % | |||||||||||||||||
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Other
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4,062 | 3,800 | 6.9 | % | 12,782 | 12,018 | 6.4 | % | ||||||||||||||||
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Total Operating Revenues
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32,578 | 32,503 | 0.2 | % | 127,434 | 126,723 | 0.6 | % | ||||||||||||||||
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Operating Expenses
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Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
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17,552 | 16,865 | 4.1 | % | 55,215 | 54,836 | 0.7 | % | ||||||||||||||||
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Selling, general and administrative
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16,412 | 17,145 | -4.3 | % | 41,079 | 41,382 | -0.7 | % | ||||||||||||||||
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Impairment of intangible assets
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- | 2,910 | - | - | 2,910 | - | ||||||||||||||||||
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Depreciation and amortization
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4,572 | 4,573 | - | 18,143 | 18,377 | -1.3 | % | |||||||||||||||||
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Total Operating Expenses
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38,536 | 41,493 | -7.1 | % | 114,437 | 117,505 | -2.6 | % | ||||||||||||||||
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Operating Income (Loss)
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(5,958 | ) | (8,990 | ) | 33.7 | % | 12,997 | 9,218 | 41.0 | % | ||||||||||||||
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Interest Expense
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820 | 952 | -13.9 | % | 3,444 | 3,535 | -2.6 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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215 | 135 | 59.3 | % | 752 | 784 | -4.1 | % | ||||||||||||||||
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Other Income (Expense) - Net
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12 | 117 | -89.7 | % | 134 | 249 | -46.2 | % | ||||||||||||||||
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Income (Loss) Before Income Taxes
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(6,551 | ) | (9,690 | ) | 32.4 | % | 10,439 | 6,716 | 55.4 | % | ||||||||||||||
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Income Tax (Benefit) Expense
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(2,772 | ) | (3,062 | ) | 9.5 | % | 2,900 | 2,532 | 14.5 | % | ||||||||||||||
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Net Income (Loss)
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(3,779 | ) | (6,628 | ) | 43.0 | % | 7,539 | 4,184 | 80.2 | % | ||||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(78 | ) | (50 | ) | -56.0 | % | (275 | ) | (240 | ) | -14.6 | % | ||||||||||||
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Net Income (Loss) Attributable to AT&T
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$ | (3,857 | ) | $ | (6,678 | ) | 42.2 | % | $ | 7,264 | $ | 3,944 | 84.2 | % | ||||||||||
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Basic Earnings (Loss) Per Share Attributable to AT&T
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$ | (0.68 | ) | $ | (1.12 | ) | 39.3 | % | $ | 1.25 | $ | 0.66 | 89.4 | % | ||||||||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,661 | 5,933 | -4.6 | % | 5,801 | 5,928 | -2.1 | % | ||||||||||||||||
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Diluted Earnings (Loss) Per Share Attributable to AT&T
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$ | (0.68 | ) | $ | (1.12 | ) | 39.3 | % | $ | 1.25 | $ | 0.66 | 89.4 | % | ||||||||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,680 | 5,955 | -4.6 | % | 5,821 | 5,950 | -2.2 | % | ||||||||||||||||
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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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Twelve Months Ended
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Wireless
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12/31/2012
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12/31/2011
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% Chg
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12/31/2012
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12/31/2011
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% Chg
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Segment Operating Revenues
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Service
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$ | 14,949 | $ | 14,347 | 4.2 | % | $ | 59,186 | $ | 56,726 | 4.3 | % | |||||||||||
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Equipment
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2,693 | 2,349 | 14.6 | % | 7,577 | 6,489 | 16.8 | % | |||||||||||||||
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Total Segment Operating Revenues
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17,642 | 16,696 | 5.7 | % | 66,763 | 63,215 | 5.6 | % | |||||||||||||||
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Segment Operating Expenses
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Operations and support
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13,296 | 12,513 | 6.3 | % | 43,296 | 41,282 | 4.9 | % | |||||||||||||||
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Depreciation and amortization
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1,781 | 1,588 | 12.2 | % | 6,873 | 6,329 | 8.6 | % | |||||||||||||||
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Total Segment Operating Expenses
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15,077 | 14,101 | 6.9 | % | 50,169 | 47,611 | 5.4 | % | |||||||||||||||
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Segment Operating Income
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2,565 | 2,595 | -1.2 | % | 16,594 | 15,604 | 6.3 | % | |||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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(17 | ) | (10 | ) | -70.0 | % | (62 | ) | (29 | ) | - | ||||||||||||
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Segment Income
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$ | 2,548 | $ | 2,585 | -1.4 | % | $ | 16,532 | $ | 15,575 | 6.1 | % | |||||||||||
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Segment Operating Income Margin
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14.5 |
%
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15.5 | % | 24.9 |
%
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24.7 | % | |||||||||||||||
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Wireline
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Segment Operating Revenues
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Data
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$ | 8,103 | $ | 7,581 | 6.9 | % | $ | 31,798 | $ | 29,560 | 7.6 | % | |||||||||||
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Voice
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5,464 | 5,994 | -8.8 | % | 22,619 | 25,126 | -10.0 | % | |||||||||||||||
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Other
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1,355 | 1,429 | -5.2 | % | 5,150 | 5,454 | -5.6 | % | |||||||||||||||
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Total Segment Operating Revenues
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14,922 | 15,004 | -0.5 | % | 59,567 | 60,140 | -1.0 | % | |||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,354 | 10,354 | - | 41,207 | 41,360 | -0.4 | % | ||||||||||||||||
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Depreciation and amortization
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2,775 | 2,889 | -3.9 | % | 11,123 | 11,615 | -4.2 | % | |||||||||||||||
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Total Segment Operating Expenses
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13,129 | 13,243 | -0.9 | % | 52,330 | 52,975 | -1.2 | % | |||||||||||||||
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Segment Operating Income
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1,793 | 1,761 | 1.8 | % | 7,237 | 7,165 | 1.0 | % | |||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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(1 | ) | - | - | (2 | ) | - | - | |||||||||||||||
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Segment Income
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$ | 1,792 | $ | 1,761 | 1.8 | % | $ | 7,235 | $ | 7,165 | 1.0 | % | |||||||||||
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Segment Operating Income Margin
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12.0 |
%
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11.7 | % | 12.1 |
%
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11.9 | % | |||||||||||||||
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Advertising Solutions
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Segment Operating Revenues
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$ | - | $ | 781 | - | $ | 1,049 | $ | 3,293 | -68.1 | % | ||||||||||||
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Segment Operating Expenses
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Operations and support
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- | 558 | - | 773 | 2,265 | -65.9 | % | ||||||||||||||||
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Impairment of Intangible Assets
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- | 2,910 | - | - | 2,910 | - | |||||||||||||||||
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Depreciation and amortization
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- | 85 | - | 106 | 386 | -72.5 | % | ||||||||||||||||
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Total Segment Operating Expenses
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- | 3,553 | - | 879 | 5,561 | -84.2 | % | ||||||||||||||||
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Segment Income (Loss)
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$ | - | $ | (2,772 | ) | - | $ | 170 | $ | (2,268 | ) | - | |||||||||||
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Segment Income Margin
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- | - | 16.2 |
%
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(68.9 | )% | |||||||||||||||||
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Other
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Segment Operating Revenues
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$ | 14 | $ | 22 | -36.4 | % | $ | 55 | $ | 75 | -26.7 | % | |||||||||||
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Segment Operating Expenses
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336 | 4,316 | -92.2 | % | 1,065 | 5,078 | -79.0 | % | |||||||||||||||
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Segment Operating Income (Loss)
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(322 | ) | (4,294 | ) | 92.5 | % | (1,010 | ) | (5,003 | ) | 79.8 | % | |||||||||||
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Equity in Net Income of Affiliates
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233 | 145 | 60.7 | % | 816 | 813 | 0.4 | % | |||||||||||||||
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Segment Income (Loss)
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$ | (89 | ) | $ | (4,149 | ) | 97.9 | % | $ | (194 | ) | $ | (4,190 | ) | 95.4 | % | |||||||
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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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Unaudited
|
December 31,
|
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2012
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2011
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Assets
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Current Assets
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Cash and cash equivalents
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$ | 4,868 | $ | 3,045 | ||||
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Accounts receivable - net of allowances for
|
||||||||
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doubtful accounts of $547 and $878
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12,657 | 13,231 | ||||||
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Prepaid expenses
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1,035 | 1,102 | ||||||
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Deferred income taxes
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1,036 | 1,470 | ||||||
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Other current assets
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3,110 | 4,137 | ||||||
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Total current assets
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22,706 | 22,985 | ||||||
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Property, Plant and Equipment - Net
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109,767 | 107,087 | ||||||
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Goodwill
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69,773 | 70,842 | ||||||
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Licenses
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52,352 | 51,374 | ||||||
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Customer Lists and Relationships - Net
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1,391 | 2,757 | ||||||
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Other Intangible Assets - Net
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5,032 | 5,212 | ||||||
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Investments in and Advances to Equity Affiliates
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4,581 | 3,718 | ||||||
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Other Assets
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6,713 | 6,467 | ||||||
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Total Assets
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$ | 272,315 | $ | 270,442 | ||||
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Liabilities and Stockholders' Equity
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Current Liabilities
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Debt maturing within one year
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$ | 3,486 | $ | 3,453 | ||||
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Accounts payable and accrued liabilities
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20,911 | 19,956 | ||||||
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Advanced billing and customer deposits
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3,808 | 3,872 | ||||||
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Accrued taxes
|
1,026 | 1,003 | ||||||
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Dividends payable
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2,556 | 2,608 | ||||||
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Total current liabilities
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31,787 | 30,892 | ||||||
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Long-Term Debt
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66,358 | 61,300 | ||||||
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Deferred Credits and Other Noncurrent Liabilities
|
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Deferred income taxes
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28,491 | 25,748 | ||||||
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Postemployment benefit obligation
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41,392 | 34,011 | ||||||
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Other noncurrent liabilities
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11,592 | 12,694 | ||||||
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Total deferred credits and other noncurrent liabilities
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81,475 | 72,453 | ||||||
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Stockholders' Equity
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Common stock
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6,495 | 6,495 | ||||||
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Additional paid-in capital
|
91,038 | 91,156 | ||||||
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Retained earnings
|
22,481 | 25,453 | ||||||
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Treasury stock
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(32,888 | ) | (20,750 | ) | ||||
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Accumulated other comprehensive income
|
5,236 | 3,180 | ||||||
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Noncontrolling interest
|
333 | 263 | ||||||
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Total stockholders' equity
|
92,695 | 105,797 | ||||||
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Total Liabilities and Stockholders' Equity
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$ | 272,315 | $ | 270,442 | ||||
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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
|
||||||||||||
|
2012
|
2011
|
2010
|
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|
Operating Activities
|
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Net income
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$ | 7,539 | $ | 4,184 | $ | 20,179 | ||||||
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Adjustments to reconcile net income to
|
||||||||||||
|
net cash provided by operating activities:
|
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Depreciation and amortization
|
18,143 | 18,377 | 19,379 | |||||||||
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Undistributed earnings from investments in equity affiliates
|
(615 | ) | (623 | ) | (603 | ) | ||||||
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Provision for uncollectible accounts
|
1,117 | 1,136 | 1,334 | |||||||||
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Deferred income tax expense and noncurrent
|
||||||||||||
|
unrecognized tax benefits
|
1,285 | 2,937 | (3,280 | ) | ||||||||
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Net (gain) loss from sale of investments, net of impairments
|
(19 | ) | (89 | ) | (802 | ) | ||||||
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Impairment of intangible assets
|
- | 2,910 | 85 | |||||||||
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Remeasurement of pension and postretirement benefits
|
9,994 | 6,280 | 2,521 | |||||||||
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Income from discontinued operations
|
- | - | (779 | ) | ||||||||
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Changes in operating assets and liabilities:
|
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Accounts receivable
|
(1,365 | ) | (1,164 | ) | (101 | ) | ||||||
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Other current assets
|
1,017 | (397 | ) | (185 | ) | |||||||
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Accounts payable and accrued liabilities
|
1,798 | (341 | ) | (1,230 | ) | |||||||
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Retirement benefit funding
|
- | (1,000 | ) | - | ||||||||
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Other - net
|
282 | 2,533 | (1,296 | ) | ||||||||
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Total adjustments
|
31,637 | 30,559 | 15,043 | |||||||||
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Net Cash Provided by Operating Activities
|
39,176 | 34,743 | 35,222 | |||||||||
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Investing Activities
|
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|
Construction and capital expenditures:
|
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|
Capital expenditures
|
(19,465 | ) | (20,110 | ) | (19,530 | ) | ||||||
|
Interest during construction
|
(263 | ) | (162 | ) | (772 | ) | ||||||
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Acquisitions, net of cash acquired
|
(828 | ) | (2,368 | ) | (2,906 | ) | ||||||
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Dispositions
|
812 | 1,301 | 1,830 | |||||||||
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Sales (purchases) of securities, net
|
65 | 62 | (100 | ) | ||||||||
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Other
|
(1 | ) | 27 | 29 | ||||||||
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Net Cash Used in Investing Activities
|
(19,680 | ) | (21,250 | ) | (21,449 | ) | ||||||
|
Financing Activities
|
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Net change in short-term borrowings with
|
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|
original maturities of three months or less
|
1 | (1,625 | ) | 1,592 | ||||||||
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Issuance of long-term debt
|
13,486 | 7,936 | 2,235 | |||||||||
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Repayment of long-term debt
|
(8,733 | ) | (7,574 | ) | (9,294 | ) | ||||||
|
Purchase of treasury stock
|
(12,752 | ) | - | - | ||||||||
|
Issuance of treasury stock
|
477 | 237 | 50 | |||||||||
|
Dividends paid
|
(10,241 | ) | (10,172 | ) | (9,916 | ) | ||||||
|
Other
|
89 | (451 | ) | (516 | ) | |||||||
|
Net Cash Used in Financing Activities
|
(17,673 | ) | (11,649 | ) | (15,849 | ) | ||||||
|
Net increase (decrease) in cash and cash equivalents
|
1,823 | 1,844 | (2,076 | ) | ||||||||
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Cash and cash equivalents beginning of year
|
3,045 | 1,201 | 3,277 | |||||||||
|
Cash and Cash Equivalents End of Year
|
$ | 4,868 | $ | 3,045 | $ | 1,201 | ||||||
|
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, subscribers and connections in (000s)
|
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|
Unaudited
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||
|
12/31/2012
|
12/31/2011
|
% Chg
|
12/31/2012
|
12/31/2011
|
% Chg
|
|||||||||||||||||
|
Wireless
|
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|
Volumes
|
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|
Total
|
106,957 | 103,247 | 3.6 | % | ||||||||||||||||||
|
Postpaid
|
70,497 | 69,309 | 1.7 | % | ||||||||||||||||||
|
Prepaid
|
7,328 | 7,225 | 1.4 | % | ||||||||||||||||||
|
Reseller
|
14,875 | 13,644 | 9.0 | % | ||||||||||||||||||
|
Connected Devices
|
14,257 | 13,069 | 9.1 | % | ||||||||||||||||||
|
Wireless Net Adds
|
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|
Total
|
1,094 | 2,497 | -56.2 | % | 3,764 | 7,699 | -51.1 | % | ||||||||||||||
|
Postpaid
|
780 | 717 | 8.8 | % | 1,438 | 1,429 | 0.6 | % | ||||||||||||||
|
Prepaid
|
(166 | ) | 159 | - | 128 | 674 | -81.0 | % | ||||||||||||||
|
Reseller
|
234 | 592 | -60.5 | % | 1,027 | 1,874 | -45.2 | % | ||||||||||||||
|
Connected Devices
|
246 | 1,029 | -76.1 | % | 1,171 | 3,722 | -68.5 | % | ||||||||||||||
|
M&A Activity, Partitioned Customers and Other Adjs.
|
(8 | ) | 12 | - | (54 | ) | 12 | - | ||||||||||||||
|
Wireless Churn
|
||||||||||||||||||||||
|
Postpaid Churn
|
1.19 | % | 1.21 | % |
-2 BP
|
1.09 | % | 1.18 | % |
-9 BP
|
||||||||||||
|
Total Churn
|
1.42 | % | 1.39 | % |
3 BP
|
1.35 | % | 1.37 | % |
-2 BP
|
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|
Other
|
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|
Branded Computing Subscribers1
|
6,429 | 5,105 | 25.9 | % | ||||||||||||||||||
|
Licensed POPs (000,000)
|
313 | 313 | - | |||||||||||||||||||
|
Wireline
|
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|
Voice
|
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|
Total Wireline Voice Connections
|
34,792 | 39,012 | -10.8 | % | ||||||||||||||||||
|
Net Change
|
(1,029 | ) | (1,086 | ) | 5.2 | % | (4,220 | ) | (4,551 | ) | 7.3 | % | ||||||||||
|
Broadband
|
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|
Total Wireline Broadband Connections
|
16,390 | 16,427 | -0.2 | % | ||||||||||||||||||
|
Net Change2
|
(2 | ) | (49 | ) | 95.9 | % | (37 | ) | 118 | - | ||||||||||||
|
Video
|
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|
U-verse
|
4,536 | 3,791 | 19.7 | % | ||||||||||||||||||
|
Satellite
|
1,600 | 1,765 | -9.3 | % | ||||||||||||||||||
|
Total Video Connections
|
6,136 | 5,556 | 10.4 | % | ||||||||||||||||||
|
Net Change
|
159 | 164 | -3.0 | % | 580 | 639 | -9.2 | % | ||||||||||||||
|
Consumer Revenue Connections
|
||||||||||||||||||||||
|
Broadband3
|
14,531 | 14,492 | 0.3 | % | ||||||||||||||||||
|
Video Connections4
|
6,114 | 5,542 | 10.3 | % | ||||||||||||||||||
|
Voice5
|
18,614 | 21,232 | -12.3 | % | ||||||||||||||||||
|
Total Consumer Revenue Connections
|
39,259 | 41,266 | -4.9 | % | ||||||||||||||||||
|
Net Change
|
(418 | ) | (586 | ) | 28.7 | % | (2,007 | ) | (2,161 | ) | 7.1 | % | ||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||
|
Construction and capital expenditures
|
||||||||||||||||||||||
|
Capital expenditures
|
$ | 5,846 | $ | 5,485 | 6.6 | % | $ | 19,465 | $ | 20,110 | -3.2 | % | ||||||||||
|
Interest during construction
|
$ | 66 | $ | 43 | 53.5 | % | $ | 263 | $ | 162 | 62.3 | % | ||||||||||
|
Dividends Declared per Share
|
$ | 0.45 | $ | 0.44 | 2.3 | % | $ | 1.77 | $ | 1.73 | 2.3 | % | ||||||||||
|
End of Period Common Shares Outstanding (000,000)
|
5,581 | 5,927 | -5.8 | % | ||||||||||||||||||
|
Debt Ratio6
|
43.0 | % | 38.0 | % |
500 BP
|
|||||||||||||||||
|
Total Employees
|
241,810 | 256,420 | -5.7 | % | ||||||||||||||||||
|
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 2,905 as of December 31, 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 4Q12, total switched access lines were 31,887, retail business switched access lines totaled 14,274, and wholesale
|
||||||||||||||||||||||
|
and coin switched access lines totaled 1,904.
|
||||||||||||||||||||||
|
Financial Data
|
||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||
|
Non-GAAP Wireless Reconciliation
|
||||||||||||||||||||||
|
Wireless Segment EBITDA
|
||||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||
|
12/31/11
|
3/31/12
|
6/30/12
|
9/30/12
|
12/31/12
|
12/31/11
|
12/31/12
|
||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||||
|
Service
|
$ | 14,347 | $ | 14,566 | $ | 14,765 | $ | 14,906 | $ | 14,949 | $ | 56,726 | $ | 59,186 | ||||||||
|
Equipment
|
2,349 | 1,570 | 1,588 | 1,726 | 2,693 | 6,489 | 7,577 | |||||||||||||||
|
Total Segment Operating Revenues
|
16,696 | 16,136 | 16,353 | 16,632 | 17,642 | 63,215 | 66,763 | |||||||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||||
|
Operations and support
|
12,513 | 9,978 | 9,590 | 10,432 | 13,296 | 41,282 | 43,296 | |||||||||||||||
|
Depreciation and amortization
|
1,588 | 1,666 | 1,696 | 1,730 | 1,781 | 6,329 | 6,873 | |||||||||||||||
|
Total Segment Operating Expenses
|
14,101 | 11,644 | 11,286 | 12,162 | 15,077 | 47,611 | 50,169 | |||||||||||||||
|
Segment Operating Income
|
2,595 | 4,492 | 5,067 | 4,470 | 2,565 | 15,604 | 16,594 | |||||||||||||||
|
Segment Operating Income Margin
|
15.5 | % | 27.8 | % | 31.0 | % | 26.9 | % | 14.5 | % | 24.7 | % | 24.9 | % | ||||||||
|
Plus: Depreciation and amortization
|
1,588 | 1,666 | 1,696 | 1,730 | 1,781 | 6,329 | 6,873 | |||||||||||||||
|
EBITDA
|
4,183 | 6,158 | 6,763 | 6,200 | 4,346 | 21,933 | 23,467 | |||||||||||||||
|
EBITDA as a % of Service Revenue
|
29.2 | % | 42.3 | % | 45.8 | % | 41.6 | % | 29.1 | % | 38.7 | % | 39.6 | % | ||||||||
|
EBITDA is defined as Operating Income Before Depreciation and Amortization. Annual Service EBITDA Margin is calculated as the sum of quarterly EBITDA divided by the sum of quarterly Service Revenues.
|
||||||||||||||||||||||
|
Financial Data
|
|||||||||||||||
|
AT&T Inc.
|
|||||||||||||||
|
Non-GAAP Financial Reconciliation
|
|||||||||||||||
|
Free Cash Flow
|
|||||||||||||||
|
Dollars in Millions
|
|||||||||||||||
|
Unaudited
|
|||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2011
|
2012
|
2011
|
2012
|
||||||||||||
|
Net cash provided by operating activities
|
$ | 7,489 | $ | 10,520 | $ | 34,743 | $ | 39,176 | |||||||
|
Less: Construction and capital expenditures
|
(5,528 | ) | (5,912 | ) | (20,272 | ) | (19,728 | ) | |||||||
|
Free Cash Flow
|
$ | 1,961 | $ | 4,608 | $ | 14,471 | $ | 19,448 | |||||||
|
Free Cash Flow after Dividends
|
|||||||||||||||
|
Dollars in Millions
|
|||||||||||||||
|
Unaudited
|
|||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
| 2011 | 2012 | 2011 | 2012 | ||||||||||||
|
Net cash provided by operating activities
|
$ | 7,489 | $ | 10,520 | $ | 34,743 | $ | 39,176 | |||||||
|
Less: Construction and capital expenditures
|
(5,528 | ) | (5,912 | ) | (20,272 | ) | (19,728 | ) | |||||||
|
Free Cash Flow
|
1,961 | 4,608 | 14,471 | 19,448 | |||||||||||
|
Less: Dividends paid
|
(2,545 | ) | (2,503 | ) | (10,172 | ) | (10,241 | ) | |||||||
|
Free Cash Flow After Dividends
|
$ | (584 | ) | $ | 2,105 | $ | 4,299 | $ | 9,207 | ||||||
|
Free cash flow includes reimbursements of certain postretirement benefits paid.
Free cash flow is defined as cash from operations minus construction and capital expenditures. Free cash flow after dividends is defined as cash from operations minus construction, capital expenditures and dividends. 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.
|
|||||||||||||||
|
Financial Data
|
||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||||||||||||||
|
Net-Debt-to-Adjusted EBITDA Ratio
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/12
|
6/30/12
|
9/30/12
|
12/31/12
|
2012
|
||||||||||||||||
|
Operating Revenues
|
$ | 31,822 | $ | 31,575 | $ | 31,459 | $ | 32,578 | $ | 127,434 | ||||||||||
|
Operating Expenses
|
25,721 | 24,758 | 25,422 | 38,536 | 114,437 | |||||||||||||||
|
Total Operating Income
|
6,101 | 6,817 | 6,037 | (5,958 | ) | 12,997 | ||||||||||||||
|
Add Back Depreciation and Amortization
|
4,560 | 4,499 | 4,512 | 4,572 | 18,143 | |||||||||||||||
|
Consolidated Reported EBITDA
|
10,661 | 11,316 | 10,549 | (1,386 | ) | 31,140 | ||||||||||||||
|
Add Back:
|
||||||||||||||||||||
|
Actuarial Loss on Benefit Plan
|
9,994 | 9,994 | ||||||||||||||||||
|
Consolidated Adjusted EBITDA*
|
10,661 | 11,316 | 10,549 | 8,608 | 41,134 | |||||||||||||||
|
End-of-period current debt
|
3,486 | |||||||||||||||||||
|
End-of-period long-term debt
|
66,358 | |||||||||||||||||||
|
Total End-of-Period Debt
|
69,844 | |||||||||||||||||||
|
Less Cash and Cash Equivalents
|
4,868 | |||||||||||||||||||
|
Net Debt Balance
|
64,976 | |||||||||||||||||||
|
Net-Debt-to-Adjusted EBITDA Ratio
|
1.58 | |||||||||||||||||||
|
*Adjusted EBITDA excludes the impact of the benefit plan actuarial loss in order to better represent AT&T's operational performance.
Adjusted EBITDA excludes all actuarial losses ($10 billion loss in 2012) associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. As a result, the Adjusted EBITDA reflects an expected return on plan assets of $4.3 billion (based on an average expected return on plan assets of 8.25%), rather than the actual return on plan assets of $6.3 billion (actual return of 12.1%), as included in the GAAP measure of income.
Our calculation of Adjusted EBITDA, as presented, may differ from similarly titled measures reported by other companies.
|
||||||||||||||||||||
|
Financial Data
|
||||||||||||
|
AT&T Inc.
|
||||||||||||
|
Non-GAAP Financial Reconciliation
|
||||||||||||
|
Adjusted Operating Revenues
|
||||||||||||
|
Dollars in Millions
|
||||||||||||
|
Unaudited
|
||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||
|
December 31,
|
December 31,
|
|||||||||||
|
2011
|
2012
|
2011
|
2012
|
|||||||||
|
Reported Operating Revenues
|
$ | 32,503 | $ | 32,578 | $ | 126,723 | $ | 127,434 | ||||
|
Adjustments:
|
||||||||||||
|
Removal of Advertising Solutions
|
(781 | ) | - | (3,293 | ) | (1,049 | ) | |||||
|
Storm Impacts
|
- | 27 | - | 27 | ||||||||
|
Adjusted Operating Revenues
|
$ | 31,722 | $ | 32,605 | $ | 123,430 | $ | 126,412 | ||||
|
Year-over-year growth - Adjusted
|
2.8 | % | 2.4 | % | ||||||||
|
Adjusted Operating Revenues is a non-GAAP financial measure calculated by excluding from operating revenues significant items that are non-operational or non-recurring in nature, including dispositions. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Operating Revenues should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculations of Adjusted Operating Revenues may differ from similarly titled measures reported by other companies.
|
||||||||||||
|
Adjusted Operating Income
|
||||||||||||
|
Dollars in Millions
|
||||||||||||
|
Unaudited
|
||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||
|
December 31,
|
December 31,
|
|||||||||||
| 2011 | 2012 | 2011 | 2012 | |||||||||
|
Reported Operating Income
|
$ | (8,990 | ) | $ | (5,958 | ) | $ | 9,218 | $ | 12,997 | ||
|
Adjustments:
|
||||||||||||
|
Removal of Advertising Solutions
|
2,772 | - | 2,268 | (170 | ) | |||||||
|
Storm Impacts
|
- | 176 | - | 176 | ||||||||
|
Actuarial Loss on Benefit Plan
|
6,280 | 9,994 | 6,280 | 9,994 | ||||||||
|
Termination of T-Mobile Acquisition
|
4,181 | - | 4,181 | - | ||||||||
|
Adjusted Operating Income
|
$ | 4,243 | $ | 4,212 | $ | 21,947 | $ | 22,997 | ||||
|
Year-over-year growth - Adjusted
|
-0.7 | % | 4.8 | % | ||||||||
|
Adjusted Operating Income is a non-GAAP financial measures calculated by excluding from operating revenues and operating expenses significant items that are non-operational or non-recurring in nature. Management believes that this measure provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Operating Income excludes all actuarial losses ($10 billion loss in 2012) associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. As a result, the Adjusted Operating Income reflects an expected return on plan assets of $4.3 billion (based on an average expected return on plan assets of 8.25%), rather than the actual return on plan assets of $6.3 billion (actual return of 12.1%), as included in the GAAP measure of income.
Adjusted Operating Income should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Operating Income, as presented, may differ from similarly titled measures reported by other companies.
|
||||||||||||
|
Financial Data
|
|||||||
|
AT&T Inc.
|
|||||||
|
Non-GAAP Financial Reconciliation
|
|||||||
|
Adjusted Operating Expenses
|
|||||||
|
Dollars in Millions
|
|||||||
|
Unaudited
|
|||||||
|
Three Months Ended
|
|||||||
|
December 31,
|
|||||||
|
2011
|
2012
|
||||||
|
Reported Operating Expenses
|
$ | 41,493 | $ | 38,536 | |||
|
Adjustments:
|
|||||||
|
Removal of Advertising Solutions
|
(3,553 | ) | - | ||||
|
Storm Impacts
|
- | (149 | ) | ||||
|
Actuarial Loss on Benefit Plan
|
(6,280 | ) | (9,994 | ) | |||
|
Termination of T-Mobile Acquisition
|
(4,181 | ) | - | ||||
|
Adjusted Operating Expenses
|
$ | 27,479 | $ | 28,393 | |||
|
Year-over-year growth - Adjusted
|
3.3 | % | |||||
|
Adjusted Operating Expenses is a non-GAAP financial measures calculated by excluding from operating expenses significant items that are non-operational or non-recurring in nature. Management believes that this measure provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Operating Expenses excludes all actuarial losses ($10 billion loss in 2012) associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. As a result, the Adjusted Operating Expenses reflects an expected return on plan assets of $4.3 billion (based on an average expected return on plan assets of 8.25%), rather than the actual return on plan assets of $6.3 billion (actual return of 12.1%), as included in the GAAP measure of income.
Adjusted Operating Expenses should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Operating Expenses, as presented, may differ from similarly titled measures reported by other companies.
|
|||||||
|
Financial Data
|
|||||||||||||
|
AT&T Inc.
|
|||||||||||||
|
Non-GAAP Financial Reconciliation
|
|||||||||||||
|
Adjusted Diluted EPS
|
|||||||||||||
|
Unaudited
|
|||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||
|
December 31,
|
December 31,
|
||||||||||||
|
2011
|
2012
|
2011
|
2012
|
||||||||||
|
Reported Diluted EPS
|
$ | (1.12 | ) | $ | (0.68 | ) | $ | 0.66 | $ | 1.25 | |||
|
Significant Items:
|
|||||||||||||
|
Removal of Advertising Solutions
|
0.46 | - | 0.41 | (0.03 | ) | ||||||||
|
Storm Impacts
|
- | 0.02 | - | 0.02 | |||||||||
|
Actuarial Loss on Benefit Plan
|
0.65 | 1.10 | 0.65 | 1.07 | |||||||||
|
Termination of T-Mobile Acquisition
|
0.44 | - | 0.44 | - | |||||||||
|
Tax Adjustments
|
(0.03 | ) | - | (0.03 | ) | - | |||||||
|
Adjusted Diluted EPS
|
$ | 0.40 | $ | 0.44 | $ | 2.13 | $ | 2.31 | |||||
|
Year-over-year growth - Adjusted
|
10.0 | % | 8.5 | % | |||||||||
|
Weighted Average Common Shares Outstanding
|
|||||||||||||
|
with Dilution (000,000)
|
5,955 | 5,680 | 5,950 | 5,821 | |||||||||
|
Adjusted diluted EPS is a non-GAAP financial measure calculated by excluding from operating revenues, operating expenses and equity in net income of affiliates certain significant items that are non-operational or non-recurring in nature, including dispositions. Management believes that this measure provides relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted diluted EPS excludes all actuarial losses ($10 billion loss in 2012) associated with our pension and postemployment benefit plans, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. As a result, the Adjusted diluted EPS reflects an expected return on plan assets of $4.3 billion (based on an average expected return on plan assets of 8.25%), rather than the actual return on plan assets of $6.3 billion (actual return of 12.1%), as included in the GAAP measure of income.
Adjusted diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted diluted EPS, as presented, may differ from similarly titled measures reported by other companies.
|
|||||||||||||
|
Financial Data
|
|||||
|
AT&T Inc.
|
|||||
|
Non-GAAP Wireless Reconciliation
|
|||||
|
Wireless Segment Adjusted EBITDA
|
|||||
|
Dollars in millions
|
|||||
|
Unaudited
|
|||||
|
Three Months Ended
|
Twelve Months Ended
|
||||
|
12/31/12
|
12/31/12
|
||||
|
Reported Service Revenues
|
$ |
14,949
|
$ 59,186
|
||
|
Adjustments:
|
|||||
|
Storm Impacts
|
22
|
22
|
|||
|
Total Adjusted Service Revenues
|
$ |
14,971
|
$ 59,208
|
||
|
EBITDA
|
$ |
4,346
|
$ 23,467
|
||
|
Adjustments:
|
|||||
|
Storm Impacts
|
128
|
128
|
|||
|
Adjusted EBITDA
|
$ |
4,474
|
$ 23,595
|
||
|
Adjusted EBITDA as a % of Adjusted Service Revenues
|
29.9%
|
39.9%
|
|||
|
EBITDA is defined as Operating Income Before Depreciation and Amortization. Annual Service EBITDA Margin is calculated as the sum of quarterly EBITDA divided by the sum of quarterly Service Revenues.
Adjusted EBITDA is a non-GAAP financial measure calculated by excluding from operating revenues and operating expenses significant items that are non-operational or non-recurring in nature. Management believes that this measure provides relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted EBITDA should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies.
|
|||||