Attached files
file | filename |
---|---|
EX-99.1 - PRESS RELEASE - AT&T INC. | ex99_1.htm |
EX-99.3 - DISCUSSION OF EBITA AND FREE CASH FLOW - AT&T INC. | ex99_3.htm |
8-K - AT&T INC. 4TH QTR 2013 EARNINGS RELEASE 8-K - AT&T INC. | q4earnings8k.htm |
Financial Data
|
|||||||||||||||||||
AT&T Inc.
|
|||||||||||||||||||
Consolidated Statements of Income
|
|||||||||||||||||||
Dollars in millions except per share amounts
|
|||||||||||||||||||
Unaudited
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||
12/31/2013
|
12/31/2012
|
% Chg
|
12/31/2013
|
12/31/2012
|
% Chg
|
||||||||||||||
Operating Revenues
|
$ | 33,163 | $ | 32,578 | 1.8 | % | $ | 128,752 | $ | 127,434 | 1.0 | % | |||||||
Operating Expenses
|
|||||||||||||||||||
Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
|
12,237 | 17,555 | -30.3 | % | 51,464 | 55,228 | -6.8 | % | |||||||||||
Selling, general and administrative
|
4,008 | 16,409 | -75.6 | % | 28,414 | 41,066 | -30.8 | % | |||||||||||
Depreciation and amortization
|
4,680 | 4,572 | 2.4 | % | 18,395 | 18,143 | 1.4 | % | |||||||||||
Total Operating Expenses
|
20,925 | 38,536 | -45.7 | % | 98,273 | 114,437 | -14.1 | % | |||||||||||
Operating Income (Loss)
|
12,238 | (5,958 | ) | - | 30,479 | 12,997 | - | ||||||||||||
Interest Expense
|
1,459 | 820 | 77.9 | % | 3,940 | 3,444 | 14.4 | % | |||||||||||
Equity in Net Income of Affiliates
|
148 | 215 | -31.2 | % | 642 | 752 | -14.6 | % | |||||||||||
Other Income (Expense) - Net
|
226 | 12 | - | 596 | 134 | - | |||||||||||||
Income (Loss) Before Income Taxes
|
11,153 | (6,551 | ) | - | 27,777 | 10,439 | - | ||||||||||||
Income Tax Expense (Benefit)
|
4,158 | (2,772 | ) | - | 9,224 | 2,900 | - | ||||||||||||
Net Income (Loss)
|
6,995 | (3,779 | ) | - | 18,553 | 7,539 | - | ||||||||||||
Less: Net Income Attributable to Noncontrolling Interest
|
(82 | ) | (78 | ) | -5.1 | % | (304 | ) | (275 | ) | -10.5 | % | |||||||
Net Income (Loss) Attributable to AT&T
|
$ | 6,913 | $ | (3,857 | ) | - | $ | 18,249 | $ | 7,264 | - | ||||||||
Basic Earnings Per Share Attributable to AT&T
|
$ | 1.31 | $ | (0.68 | ) | - | $ | 3.39 | $ | 1.25 | - | ||||||||
Weighted Average Common
Shares Outstanding (000,000)
|
5,267 | 5,661 | -7.0 | % | 5,368 | 5,801 | -7.5 | % | |||||||||||
Diluted Earnings Per Share Attributable to AT&T
|
$ | 1.31 | $ | (0.68 | ) | - | $ | 3.39 | $ | 1.25 | - | ||||||||
Weighted Average Common
Shares Outstanding with Dilution (000,000)
|
5,283 | 5,680 | -7.0 | % | 5,385 | 5,821 | -7.5 | % | |||||||||||
Financial Data
|
|||||||||||||||||||||
AT&T Inc.
|
|||||||||||||||||||||
Statements of Segment Income
|
|||||||||||||||||||||
Dollars in millions
|
|||||||||||||||||||||
Unaudited
|
|||||||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||
Wireless
|
12/31/2013
|
12/31/2012
|
% Chg
|
12/31/2013
|
12/31/2012
|
% Chg
|
|||||||||||||||
Segment Operating Revenues
|
|||||||||||||||||||||
Data
|
$ | 5,729 | $ | 4,905 | 16.8 | % | $ | 21,719 | $ | 18,297 | 18.7 | % | |||||||||
Voice, text and other service
|
9,931 | 10,044 | -1.1 | % | 39,833 | 40,889 | -2.6 | % | |||||||||||||
Equipment
|
2,777 | 2,693 | 3.1 | % | 8,347 | 7,577 | 10.2 | % | |||||||||||||
Total Segment Operating Revenues
|
18,437 | 17,642 | 4.5 | % | 69,899 | 66,763 | 4.7 | % | |||||||||||||
Segment Operating Expenses
|
|||||||||||||||||||||
Operations and support
|
12,576 | 13,296 | -5.4 | % | 44,508 | 43,296 | 2.8 | % | |||||||||||||
Depreciation and amortization
|
1,915 | 1,781 | 7.5 | % | 7,468 | 6,873 | 8.7 | % | |||||||||||||
Total Segment Operating Expenses
|
14,491 | 15,077 | -3.9 | % | 51,976 | 50,169 | 3.6 | % | |||||||||||||
Segment Operating Income
|
3,946 | 2,565 | 53.8 | % | 17,923 | 16,594 | 8.0 | % | |||||||||||||
Equity in Net Income (Loss) of Affiliates
|
(20 | ) | (17 | ) | -17.6 | % | (75 | ) | (62 | ) | -21.0 | % | |||||||||
Segment Income
|
$ | 3,926 | $ | 2,548 | 54.1 | % | $ | 17,848 | $ | 16,532 | 8.0 | % | |||||||||
Segment Operating Income Margin
|
21.4 | % | 14.5 | % | 25.6 | % | 24.9 | % | |||||||||||||
Wireline
|
|||||||||||||||||||||
Segment Operating Revenues
|
|||||||||||||||||||||
Data
|
$ | 8,574 | $ | 8,119 | 5.6 | % | $ | 33,593 | $ | 31,841 | 5.5 | % | |||||||||
Voice
|
4,863 | 5,463 | -11.0 | % | 20,333 | 22,614 | -10.1 | % | |||||||||||||
Other
|
1,279 | 1,341 | -4.6 | % | 4,888 | 5,118 | -4.5 | % | |||||||||||||
Total Segment Operating Revenues
|
14,716 | 14,923 | -1.4 | % | 58,814 | 59,573 | -1.3 | % | |||||||||||||
Segment Operating Expenses
|
|||||||||||||||||||||
Operations and support
|
10,501 | 10,358 | 1.4 | % | 41,638 | 41,207 | 1.0 | % | |||||||||||||
Depreciation and amortization
|
2,761 | 2,775 | -0.5 | % | 10,907 | 11,123 | -1.9 | % | |||||||||||||
Total Segment Operating Expenses
|
13,262 | 13,133 | 1.0 | % | 52,545 | 52,330 | 0.4 | % | |||||||||||||
Segment Operating Income
|
1,454 | 1,790 | -18.8 | % | 6,269 | 7,243 | -13.4 | % | |||||||||||||
Equity in Net Income (Loss) of Affiliates
|
1 | - | - | 2 | (1 | ) | - | ||||||||||||||
Segment Income
|
$ | 1,455 | $ | 1,790 | -18.7 | % | $ | 6,271 | $ | 7,242 | -13.4 | % | |||||||||
Segment Operating Income Margin
|
9.9 | % | 12.0 | % | 10.7 | % | 12.2 | % | |||||||||||||
Advertising Solutions
|
|||||||||||||||||||||
Segment Operating Revenues
|
$ | - | $ | - | - | $ | - | $ | 1,049 | - | |||||||||||
Segment Operating Expenses
|
|||||||||||||||||||||
Operations and support
|
- | - | - | - | 773 | - | |||||||||||||||
Depreciation and amortization
|
- | - | - | - | 106 | - | |||||||||||||||
Total Segment Operating Expenses
|
- | - | - | - | 879 | - | |||||||||||||||
Segment Income
|
$ | - | $ | - | - | $ | - | $ | 170 | - | |||||||||||
Segment Income Margin
|
- | - | - | 16.2 | % | ||||||||||||||||
Other
|
|||||||||||||||||||||
Segment Operating Revenues
|
$ | 10 | $ | 13 | -23.1 | % | $ | 39 | $ | 49 | -20.4 | % | |||||||||
Segment Operating Expenses
|
756 | 332 | - | 1,336 | 1,065 | 25.4 | % | ||||||||||||||
Segment Operating Income (Loss)
|
(746 | ) | (319 | ) | - | (1,297 | ) | (1,016 | ) | -27.7 | % | ||||||||||
Equity in Net Income of Affiliates
|
167 | 232 | -28.0 | % | 715 | 815 | -12.3 | % | |||||||||||||
Segment Income (Loss)
|
$ | (579 | ) | $ | (87 | ) | - | $ | (582 | ) | $ | (201 | ) | - |
Financial Data
|
||||||
AT&T Inc.
|
||||||
Consolidated Balance Sheets
|
||||||
Dollars in millions
|
||||||
December 31,
|
||||||
2013
|
2012
|
|||||
Unaudited
|
||||||
Assets
|
||||||
Current Assets
|
||||||
Cash and cash equivalents
|
$ | 3,339 | $ | 4,868 | ||
Accounts receivable - net of allowances for doubtful accounts of $483 and $547
|
12,918 | 12,657 | ||||
Prepaid expenses
|
960 | 1,035 | ||||
Deferred income taxes
|
1,199 | 1,036 | ||||
Other current assets
|
4,780 | 3,110 | ||||
Total current assets
|
23,196 | 22,706 | ||||
Property, Plant and Equipment - Net
|
110,968 | 109,767 | ||||
Goodwill
|
69,273 | 69,773 | ||||
Licenses
|
56,433 | 52,352 | ||||
Customer Lists and Relationships - Net
|
763 | 1,391 | ||||
Other Intangible Assets - Net
|
5,016 | 5,032 | ||||
Investments in and Advances to Equity Affiliates
|
3,860 | 4,581 | ||||
Other Assets
|
8,278 | 6,713 | ||||
Total Assets
|
$ | 277,787 | $ | 272,315 | ||
Liabilities and Stockholders' Equity
|
||||||
Current Liabilities
|
||||||
Debt maturing within one year
|
$ | 5,498 | $ | 3,486 | ||
Accounts payable and accrued liabilities
|
21,107 | 20,494 | ||||
Advanced billing and customer deposits
|
4,212 | 4,225 | ||||
Accrued taxes
|
1,774 | 1,026 | ||||
Dividends payable
|
2,404 | 2,556 | ||||
Total current liabilities
|
34,995 | 31,787 | ||||
Long-Term Debt
|
69,290 | 66,358 | ||||
Deferred Credits and Other Noncurrent Liabilities
|
||||||
Deferred income taxes
|
36,308 | 28,491 | ||||
Postemployment benefit obligation
|
29,946 | 41,392 | ||||
Other noncurrent liabilities
|
15,766 | 11,592 | ||||
Total deferred credits and other noncurrent liabilities
|
82,020 | 81,475 | ||||
Stockholders' Equity
|
||||||
Common stock
|
6,495 | 6,495 | ||||
Additional paid-in capital
|
91,091 | 91,038 | ||||
Retained earnings
|
31,141 | 22,481 | ||||
Treasury stock
|
(45,619 | ) | (32,888 | ) | ||
Accumulated other comprehensive income
|
7,880 | 5,236 | ||||
Noncontrolling interest
|
494 | 333 | ||||
Total stockholders' equity
|
91,482 | 92,695 | ||||
Total Liabilities and Stockholders' Equity
|
$ | 277,787 | $ | 272,315 |
Financial Data
|
||||||
AT&T Inc.
|
||||||
Consolidated Statements of Cash Flows
|
|
|||||
Dollars in millions
|
||||||
Unaudited
|
Twelve Months Ended December 31,
|
|||||
2013
|
2012
|
|||||
|
|
|||||
Operating Activities
|
||||||
Net income
|
$ | 18,553 | $ | 7,539 | ||
Adjustments to reconcile net income to
|
||||||
net cash provided by operating activities:
|
||||||
Depreciation and amortization
|
18,395 | 18,143 | ||||
Undistributed earnings from investments in equity affiliates
|
(324 | ) | (615 | ) | ||
Provision for uncollectible accounts
|
954 | 1,117 | ||||
Deferred income tax expense
|
6,242 | 1,747 | ||||
Net (gain) loss from sale of investments, net of impairments
|
(492 | ) | (19 | ) | ||
Actuarial (gain) loss on pension and postretirement benefits
|
(7,584 | ) | 9,994 | |||
Changes in operating assets and liabilities:
|
||||||
Accounts receivable
|
(1,329 | ) | (1,365 | ) | ||
Other current assets
|
412 | 1,017 | ||||
Accounts payable and accrued liabilities
|
(152 | ) | 1,798 | |||
Retirement benefit funding
|
(209 | ) | - | |||
Other - net
|
330 | (180 | ) | |||
Total adjustments
|
16,243 | 31,637 | ||||
Net Cash Provided by Operating Activities
|
34,796 | 39,176 | ||||
Investing Activities
|
||||||
Construction and capital expenditures:
|
||||||
Capital expenditures
|
(20,944 | ) | (19,465 | ) | ||
Interest during construction
|
(284 | ) | (263 | ) | ||
Acquisitions, net of cash acquired
|
(4,113 | ) | (828 | ) | ||
Dispositions
|
1,923 | 812 | ||||
Sales (purchases) of securities, net
|
- | 65 | ||||
Return of advances to and investments in equity affiliates
|
301 | - | ||||
Other
|
(7 | ) | (1 | ) | ||
Net Cash Used in Investing Activities
|
(23,124 | ) | (19,680 | ) | ||
Financing Activities
|
||||||
Net change in short-term borrowings with
|
||||||
original maturities of three months or less
|
20 | 1 | ||||
Issuance of other short-term borrowings
|
1,476 | - | ||||
Repayment of other short-term borrowings
|
(1,476 | ) | - | |||
Issuance of long-term debt
|
12,040 | 13,486 | ||||
Repayment of long-term debt
|
(7,698 | ) | (8,733 | ) | ||
Issuance of other long-term financing obligations
|
4,796 | - | ||||
Purchase of treasury stock
|
(13,028 | ) | (12,752 | ) | ||
Issuance of treasury stock
|
114 | 477 | ||||
Dividends paid
|
(9,696 | ) | (10,241 | ) | ||
Other
|
251 | 89 | ||||
Net Cash Used in Financing Activities
|
(13,201 | ) | (17,673 | ) | ||
Net (decrease) increase in cash and cash equivalents
|
(1,529 | ) | 1,823 | |||
Cash and cash equivalents beginning of year
|
4,868 | 3,045 | ||||
Cash and Cash Equivalents End of Year
|
$ | 3,339 | $ | 4,868 |
Financial Data
|
|
|
|||||||||||||||||||||||
|
|
||||||||||||||||||||||||
AT&T Inc.
|
|||||||||||||||||||||||||
Supplementary Operating and Financial Data
|
|||||||||||||||||||||||||
Dollars in millions except per share amounts, subscribers and connections in (000s)
|
|||||||||||||||||||||||||
Unaudited
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||||
12/31/2013
|
12/31/2012
|
% Chg
|
12/31/2013
|
12/31/2012
|
% Chg
|
||||||||||||||||||||
Wireless
|
|||||||||||||||||||||||||
Subscribers and Connections
|
|||||||||||||||||||||||||
Total
|
110,376 | 106,957 | 3.2 | % | |||||||||||||||||||||
Postpaid
|
72,638 | 70,497 | 3.0 | % | |||||||||||||||||||||
Prepaid
|
7,384 | 7,328 | 0.8 | % | |||||||||||||||||||||
Reseller
|
14,028 | 14,875 | -5.7 | % | |||||||||||||||||||||
Connected Devices
|
16,326 | 14,257 | 14.5 | % | |||||||||||||||||||||
Wireless Net Adds
|
|||||||||||||||||||||||||
Total
|
809 | 1,094 | -26.1 | % | 2,721 | 3,764 | -27.7 | % | |||||||||||||||||
Postpaid
|
566 | 780 | -27.4 | % | 1,776 | 1,438 | 23.5 | % | |||||||||||||||||
Prepaid
|
(32 | ) | (166 | ) | 80.7 | % | (13 | ) | 128 | - | |||||||||||||||
Reseller
|
(123 | ) | 234 | - | (1,074 | ) | 1,027 | - | |||||||||||||||||
Connected Devices
|
398 | 246 | 61.8 | % | 2,032 | 1,171 | 73.5 | % | |||||||||||||||||
M&A Activity, Partitioned Customers and Other Adjs.
|
107 | (8 | ) | - | 698 | (54 | ) | - | |||||||||||||||||
Wireless Churn
|
|||||||||||||||||||||||||
Postpaid Churn
|
1.11 | % | 1.19 | % |
-8 BP
|
1.06 | % | 1.09 | % |
-3 BP
|
|||||||||||||||
Total Churn
|
1.43 | % | 1.42 | % |
1 BP
|
1.37 | % | 1.35 | % |
2 BP
|
|||||||||||||||
Other
|
|||||||||||||||||||||||||
Licensed POPs (000,000)
|
317 | 313 | 1.3 | % | |||||||||||||||||||||
Wireline
|
|||||||||||||||||||||||||
Voice
|
|||||||||||||||||||||||||
Total Wireline Voice Connections1
|
28,489 | 32,184 | -11.5 | % | |||||||||||||||||||||
Net Change
|
(807 | ) | (992 | ) | 18.6 | % | (3,695 | ) | (4,148 | ) | 10.9 | % | |||||||||||||
Broadband
|
|||||||||||||||||||||||||
Total Wireline Broadband Connections
|
16,425 | 16,390 | 0.2 | % | |||||||||||||||||||||
Net Change
|
(2 | ) | (2 | ) | - | 35 | (37 | ) | - | ||||||||||||||||
Video
|
|||||||||||||||||||||||||
Total U-verse Video Connections
|
5,460 | 4,536 | 20.4 | % | |||||||||||||||||||||
Net Change
|
194 | 192 | 1.0 | % | 924 | 745 | 24.0 | % | |||||||||||||||||
Consumer Revenue Connections
|
|||||||||||||||||||||||||
Broadband2
|
14,697 | 14,531 | 1.1 | % | |||||||||||||||||||||
U-verse Video Connections1
|
5,442 | 4,524 | 20.3 | % | |||||||||||||||||||||
Voice1,3
|
16,251 | 18,612 | -12.7 | % | |||||||||||||||||||||
Total Consumer Revenue Connections1
|
36,390 | 37,667 | -3.4 | % | |||||||||||||||||||||
Net Change
|
(273 | ) | (386 | ) | 29.3 | % | (1,277 | ) | (1,839 | ) | 30.6 | % | |||||||||||||
AT&T Inc.
|
|||||||||||||||||||||||||
Construction and capital expenditures:
|
|||||||||||||||||||||||||
Capital expenditures
|
$ | 5,379 | $ | 5,846 | -8.0 | % | $ | 20,944 | $ | 19,465 | 7.6 | % | |||||||||||||
Interest during construction
|
$ | 71 | $ | 66 | 7.6 | % | $ | 284 | $ | 263 | 8.0 | % | |||||||||||||
Dividends Declared per Share
|
$ | 0.46 | $ | 0.45 | 2.2 | % | $ | 1.81 | $ | 1.77 | 2.3 | % | |||||||||||||
End of Period Common Shares Outstanding (000,000)
|
5,226 | 5,581 | -6.4 | % | |||||||||||||||||||||
Debt Ratio4
|
45.0 | % | 43.0 | % |
200 BP
|
||||||||||||||||||||
Total Employees
|
243,360 | 241,810 | 0.6 | % | |||||||||||||||||||||
1
|
Prior year amounts restated to conform to current period reporting methodology.
|
||||||||||||||||||||||||
2
|
Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
|
||||||||||||||||||||||||
3
|
Includes consumer U-verse Voice over Internet Protocol connections of 3,848 as of December 31, 2013.
|
||||||||||||||||||||||||
4
|
Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
|
||||||||||||||||||||||||
Note: For the end of 4Q13, total switched access lines were 24,639, retail business switched access lines totaled 10,364, and wholesale,
|
|||||||||||||||||||||||||
national mass markets and coin switched access lines totaled 1,872. Restated switched access lines do not include ISDN lines.
|
Financial Data
|
||||||||||||||||
AT&T Inc.
|
||||||||||||||||
Non-GAAP Financial Reconciliation
|
||||||||||||||||
Adjusted Operating Revenues, Operating Income and Margin
|
||||||||||||||||
Dollars in millions
|
||||||||||||||||
Unaudited
|
||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2012
|
2013
|
2012
|
2013
|
|||||||||||||
Reported Operating Revenues
|
$ | 32,578 | $ | 33,163 | $ | 127,434 | $ | 128,752 | ||||||||
Adjustments:
|
||||||||||||||||
Removal of Advertising Solutions
|
- | - | (1,049 | ) | - | |||||||||||
Storm Impacts
|
27 | - | 27 | - | ||||||||||||
Adjusted Operating Revenues
|
$ | 32,605 | $ | 33,163 | $ | 126,412 | $ | 128,752 | ||||||||
Year-over-year growth - Adjusted
|
1.7 | % | 1.9 | % | ||||||||||||
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,
|
|||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Reported Operating Income
|
$ | (5,958 | ) | $ | 12,238 | $ | 12,997 | $ | 30,479 | |||||||
Adjustments:
|
||||||||||||||||
Removal of Advertising Solutions
|
- | - | (170 | ) | - | |||||||||||
Storm Impacts
|
176 | - | 176 | - | ||||||||||||
Actuarial (gain) / loss on benefit plan
|
9,994 | (7,584 | ) | 9,994 | (7,584 | ) | ||||||||||
Employee separation charges
|
- | 501 | - | 501 | ||||||||||||
Gain on transfer of wireless spectrum
|
- | - | - | (229 | ) | |||||||||||
Adjusted Operating Income
|
$ | 4,212 | $ | 5,155 | $ | 22,997 | $ | 23,167 | ||||||||
Year-over-year growth - Adjusted
|
22.4 | % | 0.7 | % | ||||||||||||
Adjusted Operating Income Margin*
|
12.9 | % | 15.5 | % | 18.2 | % | 18.0 | % | ||||||||
Adjusted Operating Income and Margin are 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 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 Income and Margin exclude all actuarial gains or losses ($7.6 billion gain in 2013) 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, Adjusted Operating Income and Margin reflect an expected return on plan assets of $4.0 billion (based on an average expected return on plan assets of 7.75%), rather than the actual return on plan assets of $7.2 billion (actual return of 14.1%), as included in the GAAP measure of income.
Adjusted Operating Income and Margin 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 and Margin, as presented, may differ from similarly titled measures reported by other companies.
*Adjusted Operating Income Margin is calculated by dividing Adjusted Operating Income by Adjusted Operating Revenues.
|
||||||||||||||||
Financial Data
|
|||||||
AT&T Inc.
|
|||||||
Non-GAAP Consolidated Reconciliation
|
|||||||
Adjusted Operating Expenses
|
|||||||
Dollars in Millions
|
|||||||
Unaudited
|
|||||||
Three Months Ended
|
|||||||
December 31,
|
|||||||
2012
|
2013
|
||||||
Reported Operating Expenses
|
$ |
38,536
|
$ |
20,925
|
|||
Adjustments:
|
|||||||
Storm Impacts
|
(149
|
) |
-
|
||||
Actuarial gain / (loss) on benefit plan
|
(9,994
|
) |
7,584
|
||||
Employee separation charges
|
-
|
(501
|
) | ||||
Adjusted Operating Expenses
|
$ |
28,393
|
$ |
28,008
|
|||
Year-over-year growth - Adjusted
|
-1.4%
|
||||||
Adjusted Operating Expenses is a non-GAAP financial measure calculated by excluding from 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 Operating Expenses excludes all actuarial gains ($7.6 billion in 2013) 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 $4.0 billion (based on an average expected return on plan assets of 7.75%), rather than the actual return on plan assets of $7.2 billion (actual return of 14.1%), 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 Wireless Reconciliation
|
||||||||||||||||||||||||||||
Wireless Segment EBITDA
|
||||||||||||||||||||||||||||
Dollars in millions
|
||||||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||||||||
12/31/12
|
3/31/13
|
6/30/13
|
9/30/13
|
12/31/13
|
12/31/12
|
12/31/13
|
||||||||||||||||||||||
Segment Operating Revenues
|
||||||||||||||||||||||||||||
Data
|
$ | 4,905 | $ | 5,125 | $ | 5,356 | $ | 5,509 | $ | 5,729 | $ | 18,297 | $ | 21,719 | ||||||||||||||
Voice, text and other service
|
10,044 | 9,937 | 10,014 | 9,951 | 9,931 | 40,889 | 39,833 | |||||||||||||||||||||
Equipment
|
2,693 | 1,629 | 1,921 | 2,020 | 2,777 | 7,577 | 8,347 | |||||||||||||||||||||
Total Segment Operating Revenues
|
17,642 | 16,691 | 17,291 | 17,480 | 18,437 | 66,763 | 69,899 | |||||||||||||||||||||
Segment Operating Expenses
|
||||||||||||||||||||||||||||
Operations and support
|
13,296 | 10,180 | 10,770 | 10,982 | 12,576 | 43,296 | 44,508 | |||||||||||||||||||||
Depreciation and amortization
|
1,781 | 1,835 | 1,843 | 1,875 | 1,915 | 6,873 | 7,468 | |||||||||||||||||||||
Total Segment Operating Expenses
|
15,077 | 12,015 | 12,613 | 12,857 | 14,491 | 50,169 | 51,976 | |||||||||||||||||||||
Segment Operating Income
|
2,565 | 4,676 | 4,678 | 4,623 | 3,946 | 16,594 | 17,923 | |||||||||||||||||||||
Segment Operating Income Margin
|
14.5 | % | 28.0 | % | 27.1 | % | 26.4 | % | 21.4 | % | 24.9 | % | 25.6 | % | ||||||||||||||
Plus: Depreciation and amortization
|
1,781 | 1,835 | 1,843 | 1,875 | 1,915 | 6,873 | 7,468 | |||||||||||||||||||||
EBITDA
|
$ | 4,346 | $ | 6,511 | $ | 6,521 | $ | 6,498 | $ | 5,861 | $ | 23,467 | $ | 25,391 | ||||||||||||||
EBITDA as a % of Service Revenues1
|
29.1 | % | 43.2 | % | 42.4 | % | 42.0 | % | 37.4 | % | 40 | % | 41.3 | % | ||||||||||||||
EBITDA is defined as Operating Income Before Depreciation and Amortization.
1Service revenues is defined as Wireless data and voice, text and other service revenues.
|
||||||||||||||||||||||||||||
Financial Data
|
||||||||||||||||
AT&T Inc.
|
||||||||||||||||
Non-GAAP Consolidated Reconciliation
|
||||||||||||||||
Adjusted Diluted EPS
|
||||||||||||||||
AT&T Inc.
|
||||||||||||||||
Unaudited
|
||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2012
|
2013
|
2012
|
2013
|
|||||||||||||
Reported Diluted EPS
|
$ | (0.68 | ) | $ | 1.31 | $ | 1.25 | $ | 3.39 | |||||||
Adjustments:
|
||||||||||||||||
Removal of Advertising Solutions
|
- | - | (0.03 | ) | - | |||||||||||
Storm Impacts
|
0.02 | - | 0.02 | - | ||||||||||||
Actuarial (gain) / loss on benefit plan
|
1.10 | (0.89 | ) | 1.07 | (0.88 | ) | ||||||||||
Gain on transfer of wireless spectrum
|
- | - | - | (0.03 | ) | |||||||||||
Income tax settlement/items
|
- | - | - | (0.05 | ) | |||||||||||
Early debt redemption costs
|
- | 0.07 | - | 0.07 | ||||||||||||
Employee separation charges
|
- | 0.06 | - | 0.06 | ||||||||||||
América Móvil - Gain from sale of shares
|
- | (0.02 | ) | - | (0.06 | ) | ||||||||||
Adjusted Diluted EPS
|
$ | 0.44 | $ | 0.53 | $ | 2.31 | $ | 2.50 | ||||||||
Year-over-year growth - Adjusted
|
20.5 | % | 8.2 | % | ||||||||||||
Weighted Average Common Shares Outstanding
|
||||||||||||||||
with Dilution (000,000)
|
5,680 | 5,283 | 5,821 | 5,385 | ||||||||||||
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 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 Consolidated Reconciliation
|
||||||||||||||||
Free Cash Flow
|
||||||||||||||||
Dollars in millions
|
||||||||||||||||
Unaudited
|
||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2012
|
2013
|
2012
|
2013
|
|||||||||||||
Net cash provided by operating activities
|
$ | 10,520 | $ | 7,917 | $ | 39,176 | $ | 34,796 | ||||||||
Less: Construction and capital expenditures
|
(5,912 | ) | (5,450 | ) | (19,728 | ) | (21,228 | ) | ||||||||
Free Cash Flow
|
$ | 4,608 | $ | 2,467 | $ | 19,448 | $ | 13,568 | ||||||||
Free Cash Flow after Dividends
|
||||||||||||||||
Dollars in millions
|
||||||||||||||||
Unaudited
|
||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Net cash provided by operating activities
|
$ | 10,520 | $ | 7,917 | $ | 39,176 | $ | 34,796 | ||||||||
Less: Construction and capital expenditures
|
(5,912 | ) | (5,450 | ) | (19,728 | ) | (21,228 | ) | ||||||||
Free Cash Flow
|
4,608 | 2,467 | 19,448 | 13,568 | ||||||||||||
Less: Dividends paid
|
(2,503 | ) | (2,371 | ) | (10,241 | ) | (9,696 | ) | ||||||||
Free Cash Flow After Dividends
|
$ | 2,105 | $ | 96 | $ | 9,207 | $ | 3,872 | ||||||||
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
|
||||||||||||||||||||
3/31/13
|
6/30/13
|
9/30/13
|
12/31/13
|
2013
|
||||||||||||||||
Operating Revenues
|
$ | 31,356 | $ | 32,075 | $ | 32,158 | $ | 33,163 | $ | 128,752 | ||||||||||
Operating Expenses
|
25,416 | 25,962 | 25,970 | 20,925 | 98,273 | |||||||||||||||
Total Operating Income
|
5,940 | 6,113 | 6,188 | 12,238 | 30,479 | |||||||||||||||
Add Back Depreciation and Amortization
|
4,529 | 4,571 | 4,615 | 4,680 | 18,395 | |||||||||||||||
Consolidated Reported EBITDA
|
10,469 | 10,684 | 10,803 | 16,918 | 48,874 | |||||||||||||||
Add back:
|
||||||||||||||||||||
Actuarial (gain) / loss on benefit plan
|
(7,584 | ) | (7,584 | ) | ||||||||||||||||
Consolidated Adjusted EBITDA
|
10,469 | 10,684 | 10,803 | 9,334 | 41,290 | |||||||||||||||
End-of-period current debt
|
5,498 | |||||||||||||||||||
End-of-period long-term debt
|
69,290 | |||||||||||||||||||
Total End-of-Period Debt
|
74,788 | |||||||||||||||||||
Less Cash and Cash Equivalents
|
3,339 | |||||||||||||||||||
Net Debt Balance
|
71,449 | |||||||||||||||||||
Net-Debt-to-Adjusted-EBITDA Ratio
|
1.73 | |||||||||||||||||||
Net-Debt-to-EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies. Management believes these measures provide relevant and useful information to investors and other users of our financial data. Net Debt is calculated by subtracting cash and cash equivalents from the sum of debt maturing within one year and long-term debt. The Net-Debt-to-EBITDA ratio is calculated by dividing the Net Debt by annualized EBITDA.
Adjusted EBITDA excludes all actuarial gains or losses ($7.6 billion gain in 2013) 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, Adjusted EBITDA reflects an expected return on plan assets of $4.0 billion (based on an average expected return on plan assets of 7.75%), rather than the actual return on plan assets of $7.2 billion (actual return of 14.1%), 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.
|
||||||||||||||||||||