AT&T INC. - FORM 8-K - EX-99.1 - AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA - January 28, 2015

Attached files

file filename
8-K - AT&T INC.q4earning801_8k.htm
 
Financial Data
                         
AT&T Inc.
Consolidated Statements of Income
                        
Dollars in millions except per share amounts
Unaudited
  
Three Months Ended
  
Twelve Months Ended
   
12/31/2014
    
12/31/2013
    
% Chg
    
12/31/2014
    
12/31/2013
    
% Chg
  
Operating Revenues
  
$
34,439
    
$
33,163
      
3.8
%
  
$
132,447
    
$
128,752
      
2.9
%
                                                 
Operating Expenses
                                                
  Cost of services and sales (exclusive of depreciation and
     amortization shown separately below)
    
18,537
      
12,237
      
51.5
%
    
60,611
      
51,464
      
17.8
%
  Selling, general and administrative
    
14,765
      
4,008
      
-
      
39,697
      
28,414
      
39.7
%
  Abandonment of network assets
    
2,120
      
-
      
-
      
2,120
      
-
      
-
  
  Depreciation and amortization
    
4,567
      
4,680
      
-2.4
%
    
18,273
      
18,395
      
-0.7
%
    Total Operating Expenses
    
39,989
      
20,925
      
91.1
%
    
120,701
      
98,273
      
22.8
%
Operating Income (Loss)
    
(5,550
)
    
12,238
      
-
      
11,746
      
30,479
      
-61.5
%
Interest Expense
    
856
      
1,459
      
-41.3
%
    
3,613
      
3,940
      
-8.3
%
Equity in Net Income (Loss) of Affiliates
    
(13
)
    
148
      
-
      
175
      
642
      
-72.7
%
Other Income (Expense) - Net
    
196
      
226
      
-13.3
%
    
1,652
      
596
      
-
  
Income (Loss) Before Income Taxes
    
(6,223
)
    
11,153
      
-
      
9,960
      
27,777
      
-64.1
%
Income Tax (Benefit) Expense
    
(2,327
)
    
4,158
      
-
      
3,442
      
9,224
      
-62.7
%
Net Income (Loss)
    
(3,896
)
    
6,995
      
-
      
6,518
      
18,553
      
-64.9
%
  Less: Net Income Attributable to Noncontrolling Interest
    
(81
)
    
(82
)
    
1.2
%
    
(294
)
    
(304
)
    
3.3
%
Net Income (Loss) Attributable to AT&T
  
$
(3,977
)
  
$
6,913
      
-
    
$
6,224
    
$
18,249
      
-65.9
%
                                                 
                                                 
Basic Earnings (Loss) Per Share Attributable to AT&T
  
$
(0.77
)
  
$
1.31
      
-
    
$
1.19
    
$
3.39
      
-64.9
%
Weighted Average Common
     Shares Outstanding (000,000)
    
5,198
      
5,267
      
-1.3
%
    
5,205
      
5,368
      
-3.0
%
                                                 
Diluted Earnings (Loss) Per Share Attributable to AT&T
  
$
(0.77
)
  
$
1.31
      
-
    
$
1.19
    
$
3.39
      
-64.9
%
Weighted Average Common
     Shares Outstanding with Dilution (000,000)
    
5,214
      
5,283
      
-1.3
%
    
5,221
      
5,385
      
-3.0
%
                                                 
 
 
Financial Data     
                         
AT&T Inc.  
Statements of Segment Income  
                      
Dollars in millions   
Unaudited
                        
 
Three Months Ended
  
Twelve Months Ended
                         
Wireless
12/31/2014
  
12/31/2013
  
% Chg
  
12/31/2014
    
12/31/2013
  
% Chg
Segment Operating Revenues
                        
  Service
$
15,074
    
$
15,660
      
-3.7
%
  
$
61,032
  
 
  
$
61,552
      
-0.8
%
  Equipment
  
4,785
      
2,777
      
72.3
%
    
12,960
        
8,347
      
55.3
%
    Total Segment Operating Revenues
  
19,859
      
18,437
      
7.7
%
    
73,992
        
69,899
      
5.9
%
                                                 
Segment Operating Expenses
                                                
  Operations and support
  
14,619
      
12,576
      
16.2
%
    
48,924
        
44,508
      
9.9
%
  Depreciation and amortization
  
2,010
      
1,915
      
5.0
%
    
7,941
        
7,468
      
6.3
%
    Total Segment Operating Expenses
  
16,629
      
14,491
      
14.8
%
    
56,865
        
51,976
      
9.4
%
Segment Operating Income
  
3,230
      
3,946
      
-18.1
%
    
17,127
        
17,923
      
-4.4
%
Equity in Net Income (Loss) of Affiliates
  
(37
)
    
(20
)
    
-85.0
%
    
(112
)
      
(75
)
    
-49.3
%
Segment Income
$
3,193
    
$
3,926
      
-18.7
%
  
$
17,015
  
 
  
$
17,848
      
-4.7
%
                                                 
Segment Operating Income Margin
  
16.3
% 
    
21.4
%
            
23.1
% 
 
    
25.6
%
        
                                                 
Wireline
                                                
Segment Operating Revenues
                                                
  Service
$
14,240
    
$
14,434
      
-1.3
%
  
$
57,405
  
 
  
$
57,700
      
-0.5
%
  Equipment
  
332
      
282
      
17.7
%
    
1,020
        
1,114
      
-8.4
%
    Total Segment Operating Revenues
  
14,572
      
14,716
      
-1.0
%
    
58,425
        
58,814
      
-0.7
%
                                                 
Segment Operating Expenses
                                                
  Operations and support
  
10,553
      
10,501
      
0.5
%
    
42,471
        
41,638
      
2.0
%
  Depreciation and amortization
  
2,554
      
2,761
      
-7.5
%
    
10,323
        
10,907
      
-5.4
%
    Total Segment Operating Expenses
  
13,107
      
13,262
      
-1.2
%
    
52,794
        
52,545
      
0.5
%
Segment Operating Income
  
1,465
      
1,454
      
0.8
%
    
5,631
        
6,269
      
-10.2
%
Equity in Net Income (Loss) of Affiliates
  
(2
)
    
1
      
-
      
-
        
2
      
-
  
Segment Income
$
1,463
    
$
1,455
      
0.5
%
  
$
5,631
  
 
  
$
6,271
      
-10.2
%
                                                 
Segment Operating Income Margin
  
10.1
 %    
9.9
%
            
9.6
  %
 
    
10.7
%
        
 
 
 
 
Financial Data
         
AT&T Inc.
Consolidated Balance Sheets
        
Dollars in millions
   
December 31,
   
2014
    
2013
  
   
Unaudited
      
Assets
        
Current Assets
        
Cash and cash equivalents
  
$
8,603
    
$
3,339
  
Accounts receivable - net of allowances for doubtful accounts of $454 and $483
    
14,527
      
12,918
  
Prepaid expenses
    
831
      
960
  
Deferred income taxes
    
1,142
      
1,199
  
Other current assets
    
6,925
      
4,780
  
Total current assets
    
32,028
      
23,196
  
Property, Plant and Equipment - Net
    
112,898
      
110,968
  
Goodwill
    
69,692
      
69,273
  
Licenses
    
60,824
      
56,433
  
Other Intangible Assets - Net
    
6,139
      
5,779
  
Investments in Equity Affiliates
    
250
      
3,860
  
Other Assets
    
10,998
      
8,278
  
Total Assets
  
$
292,829
    
$
277,787
  
                 
Liabilities and Stockholders' Equity
                
Current Liabilities
                
Debt maturing within one year
  
$
6,056
    
$
5,498
  
Accounts payable and accrued liabilities
    
23,592
      
21,107
  
Advanced billing and customer deposits
    
4,105
      
4,212
  
Accrued taxes
    
1,091
      
1,774
  
Dividends payable
    
2,438
      
2,404
  
Total current liabilities
    
37,282
      
34,995
  
Long-Term Debt
    
76,011
      
69,290
  
Deferred Credits and Other Noncurrent Liabilities
                
Deferred income taxes
    
37,544
      
36,308
  
Postemployment benefit obligation
    
37,079
      
29,946
  
Other noncurrent liabilities
    
17,989
      
15,766
  
Total deferred credits and other noncurrent liabilities
    
92,612
      
82,020
  
Stockholders' Equity
                
Common stock
    
6,495
      
6,495
  
Additional paid-in capital
    
91,108
      
91,091
  
Retained earnings
    
27,736
      
31,141
  
Treasury stock
    
(47,029
)
    
(45,619
)
Accumulated other comprehensive income
    
8,060
      
7,880
  
Noncontrolling interest
    
554
      
494
  
Total stockholders' equity
    
86,924
      
91,482
  
Total Liabilities and Stockholders' Equity
  
$
292,829
    
$
277,787
  
 
 
 
Financial Data
         
AT&T Inc.
Consolidated Statements of Cash Flows
        
Dollars in millions
Unaudited
  
Twelve Months Ended December 31,
   
2014
  
2013
         
Operating Activities
        
Net income
  
$
6,518
    
$
18,553
  
Adjustments to reconcile net income to
                
   net cash provided by operating activities:
                
    Depreciation and amortization
    
18,273
      
18,395
  
    Undistributed earnings from investments in equity affiliates
    
(27
)
    
(324
)
    Provision for uncollectible accounts
    
1,032
      
954
  
    Deferred income tax expense
    
1,772
      
6,242
  
    Net gain from sale of investments, net of impairments
    
(1,532
)
    
(492
)
    Actuarial loss (gain) on pension and postretirement benefits
    
7,869
      
(7,584
)
    Abandonment of network assets
    
2,120
      
-
  
Changes in operating assets and liabilities:
                
    Accounts receivable
    
(2,651
)
    
(1,329
)
    Other current assets
    
(962
)
    
412
  
    Accounts payable and accrued liabilities
    
2,412
      
(152
)
Retirement benefit funding
    
(560
)
    
(209
)
Other - net
    
(2,926
)
    
330
  
Total adjustments
    
24,820
      
16,243
  
Net Cash Provided by Operating Activities
    
31,338
      
34,796
  
                 
Investing Activities
                
Construction and capital expenditures:
                
    Capital expenditures
    
(21,199
)
    
(20,944
)
    Interest during construction
    
(234
)
    
(284
)
Acquisitions, net of cash acquired
    
(3,141
)
    
(4,113
)
Dispositions
    
8,123
      
1,923
  
Purchases of securities
    
(1,890
)
    
-
  
Return of advances to and investments in equity affiliates
    
4
      
301
  
Other
    
-
      
(7
)
Net Cash Used in Investing Activities
    
(18,337
)
    
(23,124
)
                 
Financing Activities
                
Net change in short-term borrowings with
                
   original maturities of three months or less
    
(16
)
    
20
  
Issuance of other short-term borrowings
    
-
      
1,476
  
Repayment of other short-term borrowings
    
-
      
(1,476
)
Issuance of long-term debt
    
15,926
      
12,040
  
Repayment of long-term debt
    
(10,400
)
    
(7,698
)
Issuance of other long-term financing obligations
    
107
      
4,796
  
Purchase of treasury stock
    
(1,617
)
    
(13,028
)
Issuance of treasury stock
    
39
      
114
  
Dividends paid
    
(9,552
)
    
(9,696
)
Other
    
(2,224
)
    
251
  
Net Cash Used in Financing Activities
    
(7,737
)
    
(13,201
)
Net increase (decrease) in cash and cash equivalents
    
5,264
      
(1,529
)
Cash and cash equivalents beginning of year
    
3,339
      
4,868
  
Cash and Cash Equivalents End of Year
  
$
8,603
    
$
3,339
  
 
 
 
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
   
12/31/2014
  
12/31/2013
  
% Chg
  
12/31/2014
  
12/31/2013
  
% Chg
                         
Wireless
                        
Subscribers and Connections
          
 
      
Total
      
120,554
      
110,376
      
9.2
%
Postpaid
                
75,931
      
72,638
      
4.5
%
Prepaid
                
10,986
      
7,384
      
48.8
%
Reseller
                
13,855
      
14,028
      
-1.2
%
Connected Devices
                
19,782
      
16,326
      
21.2
%
                                     
Wireless Net Adds
                                        
Total
    
1,905
      
809
      
-
      
5,608
      
2,721
      
-
  
Postpaid
    
854
      
566
      
50.9
%
    
3,290
      
1,776
      
85.2
%
Prepaid
    
(180
)
    
(32
)
    
-
      
(775
)
    
(13
)
    
-
  
Reseller
    
(65
)
    
(123
)
    
47.2
%
    
(346
)
    
(1,074
)
    
67.8
%
Connected Devices
    
1,296
      
398
      
-
      
3,439
      
2,032
      
69.2
%
M&A Activity, Partitioned Customers and Other Adjs.
    
(1
)
    
107
      
-
      
4,570
      
698
      
-
  
                                                 
Wireless Churn
                                                
Postpaid Churn
    
1.22
%
    
1.11
%
  
11 BP
    
1.04
%
    
1.06
%
  
-2 BP
Total Churn
    
1.59
%
    
1.43
%
  
16 BP
    
1.45
%
    
1.37
%
  
8 BP
                                                 
Other
                                                
Licensed POPs (000,000)
                            
321
      
317
      
1.3
%
                                                 
Wireline
                                                
Voice
                                                
Total Wireline Voice Connections
                            
24,778
      
28,489
      
-13.0
%
Net Change
    
(1,442
)
    
(807
)
    
-78.7
%
    
(3,711
)
    
(3,695
)
    
-0.4
%
                                                 
Broadband
                                                
Total Wireline Broadband Connections
                            
16,028
      
16,425
      
-2.4
%
Net Change
    
(458
)
    
(2
)
    
-
      
(397
)
    
35
      
-
  
                                                 
Video
                                                
Total U-verse Video Connections
                            
5,943
      
5,460
      
8.8
%
Net Change
    
(124
)
    
194
      
-
      
483
      
924
      
-47.7
%
                                                 
Consumer Revenue Connections
                                                
Broadband1
                            
14,444
      
14,697
      
-1.7
%
U-verse Video Connections
                            
5,920
      
5,442
      
8.8
%
Voice2
                            
14,002
      
16,251
      
-13.8
%
Total Consumer Revenue Connections1
                            
34,366
      
36,390
      
-5.6
%
Net Change
    
(1,403
)
    
(273
)
    
-
      
(2,024
)
    
(1,277
)
    
-58.5
%
                                                 
AT&T Inc.
                                                
Construction and capital expenditures:
                                                
Capital expenditures
  
$
4,370
    
$
5,379
      
-18.8
%
  
$
21,199
    
$
20,944
      
1.2
%
Interest during construction
  
$
56
    
$
71
      
-21.1
%
  
$
234
    
$
284
      
-17.6
%
Dividends Declared per Share
  
$
0.47
    
$
0.46
      
2.2
%
  
$
1.85
    
$
1.81
      
2.2
%
End of Period Common Shares Outstanding (000,000)
                            
5,187
      
5,226
      
-0.7
%
Debt Ratio3
                            
48.6%
 
    
45.0%
 
  
360 BP
Total Employees
                            
243,620
      
243,360
      
0.1
%
                                                 
1
Consumer wireline broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband.  
2
Includes consumer U-verse Voice over Internet Protocol connections of 4,759 as of December 31, 2014.
3
Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
 
Note: For the end of 4Q14, total switched access lines were 19,896; retail business switched access lines totaled 8,939; and wholesale,
   
 national mass markets and coin switched access lines totaled 1,714. Restated switched access lines do not include ISDN lines.
 
 
 

AT&T INC. Reports