Attached files
| file | filename |
|---|---|
| 8-K - AT&T INC. 4TH QRT 2011 EARNINGS RELEASE 8-K - AT&T INC. | q4earning8k.htm |
| EX-99.1 - PRESS RELEASE - AT&T INC. | ex99_1.htm |
| EX-99.3 - DISCUSSION OF EBITDA AND FREE CASH FLOW - AT&T INC. | ex99_3.htm |
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Financial Data
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AT&T Inc.
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Consolidated Statements of Income
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Dollars in millions except per share amounts
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Unaudited
|
Three Months Ended
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Twelve Months Ended
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||||||||||||||||||||||
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12/31/2011
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12/31/2010
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% Chg
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12/31/2011
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12/31/2010
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% Chg
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Operating Revenues
|
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Wireless service
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$ | 14,347 | $ | 13,799 | 4.0 | % | $ | 56,726 | $ | 53,510 | 6.0 | % | ||||||||||||
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Data
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7,598 | 7,091 | 7.1 | % | 29,606 | 27,555 | 7.4 | % | ||||||||||||||||
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Voice
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5,995 | 6,647 | -9.8 | % | 25,131 | 28,332 | -11.3 | % | ||||||||||||||||
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Directory
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781 | 926 | -15.7 | % | 3,293 | 3,935 | -16.3 | % | ||||||||||||||||
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Other
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3,782 | 2,898 | 30.5 | % | 11,967 | 10,948 | 9.3 | % | ||||||||||||||||
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Total Operating Revenues
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32,503 | 31,361 | 3.6 | % | 126,723 | 124,280 | 2.0 | % | ||||||||||||||||
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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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17,474 | 13,939 | 25.4 | % | 57,374 | 52,379 | 9.5 | % | ||||||||||||||||
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Selling, general and administrative
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16,536 | 10,342 | 59.9 | % | 38,844 | 32,864 | 18.2 | % | ||||||||||||||||
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Impairment of intangible assets
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2,910 | 85 | - | 2,910 | 85 | - | ||||||||||||||||||
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Depreciation and amortization
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4,573 | 4,907 | -6.8 | % | 18,377 | 19,379 | -5.2 | % | ||||||||||||||||
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Total Operating Expenses
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41,493 | 29,273 | 41.7 | % | 117,505 | 104,707 | 12.2 | % | ||||||||||||||||
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Operating Income (Loss)
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(8,990 | ) | 2,088 | - | 9,218 | 19,573 | -52.9 | % | ||||||||||||||||
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Interest Expense
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952 | 746 | 27.6 | % | 3,535 | 2,994 | 18.1 | % | ||||||||||||||||
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Equity in Net Income of Affiliates
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135 | 133 | 1.5 | % | 784 | 762 | 2.9 | % | ||||||||||||||||
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Other Income (Expense) - Net
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117 | 72 | 62.5 | % | 249 | 897 | -72.2 | % | ||||||||||||||||
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Income (Loss) from Continuing Operations Before Income Taxes
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(9,690 | ) | 1,547 | - | 6,716 | 18,238 | -63.2 | % | ||||||||||||||||
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Income Tax (Benefit) Expense
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(3,062 | ) | 388 | - | 2,532 | (1,162 | ) | - | ||||||||||||||||
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Income (Loss) from Continuing Operations
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(6,628 | ) | 1,159 | - | 4,184 | 19,400 | -78.4 | % | ||||||||||||||||
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Income from Discontinued Operations, net of tax
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- | 2 | - | - | 779 | - | ||||||||||||||||||
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Net Income (Loss)
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(6,628 | ) | 1,161 | - | 4,184 | 20,179 | -79.3 | % | ||||||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(50 | ) | (72 | ) | 30.6 | % | (240 | ) | (315 | ) | 23.8 | % | ||||||||||||
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Net Income (Loss) Attributable to AT&T
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$ | (6,678 | ) | $ | 1,089 | - | $ | 3,944 | $ | 19,864 | -80.1 | % | ||||||||||||
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Basic Earnings (Loss) Per Share from Continuing
Operations Attributable to AT&T
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$ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.23 | -79.6 | % | ||||||||||||
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Basic Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | - | - | - | 0.13 | - | ||||||||||||||||||
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Basic Earnings (Loss) Per Share Attributable to AT&T
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$ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.36 | -80.4 | % | ||||||||||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,933 | 5,915 | 0.3 | % | 5,928 | 5,913 | 0.3 | % | ||||||||||||||||
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Diluted Earnings (Loss) Per Share from Continuing
Operations Attributable to AT&T
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$ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.22 | -79.5 | % | ||||||||||||
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Diluted Earnings Per Share from Discontinued
Operations Attributable to AT&T
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- | - | - | - | 0.13 | - | ||||||||||||||||||
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Diluted Earnings (Loss) Per Share Attributable to AT&T
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$ | (1.12 | ) | $ | 0.18 | - | $ | 0.66 | $ | 3.35 | -80.3 | % | ||||||||||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,955 | 5,941 | 0.2 | % | 5,950 | 5,938 | 0.2 | % | ||||||||||||||||
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Financial Data
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AT&T Inc.
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Statements of Segment Income
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Dollars in millions
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Unaudited
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Three Months Ended
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Twelve Months Ended
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Wireless
|
12/31/2011
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12/31/2010
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% Chg
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12/31/2011
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12/31/2010
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% Chg
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Segment Operating Revenues
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Service
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$ | 14,347 | $ | 13,799 | 4.0 | % | $ | 56,726 | $ | 53,510 | 6.0 | % | ||||||||||||||
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Equipment
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2,348 | 1,382 | 69.9 | % | 6,486 | 4,990 | 30.0 | % | ||||||||||||||||||
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Total Segment Operating Revenues
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16,695 | 15,181 | 10.0 | % | 63,212 | 58,500 | 8.1 | % | ||||||||||||||||||
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Segment Operating Expenses
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Operations and support
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12,574 | 9,988 | 25.9 | % | 41,581 | 36,746 | 13.2 | % | ||||||||||||||||||
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Depreciation and amortization
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1,587 | 1,721 | -7.8 | % | 6,324 | 6,497 | -2.7 | % | ||||||||||||||||||
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Total Segment Operating Expenses
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14,161 | 11,709 | 20.9 | % | 47,905 | 43,243 | 10.8 | % | ||||||||||||||||||
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Segment Operating Income
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2,534 | 3,472 | -27.0 | % | 15,307 | 15,257 | 0.3 | % | ||||||||||||||||||
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Equity in Net Income (Loss) of Affiliates
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(10 | ) | (5 | ) | - | (29 | ) | 9 | - | |||||||||||||||||
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Segment Income
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$ | 2,524 | $ | 3,467 | -27.2 | % | $ | 15,278 | $ | 15,266 | 0.1 | % | ||||||||||||||
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Segment Operating Income Margin
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15.2 | % |
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22.9 | % | 24.2 | % |
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26.1 | % | ||||||||||||||||
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Wireline
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Segment Operating Revenues
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Data
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$ | 7,598 | $ | 7,091 | 7.1 | % | $ | 29,606 | $ | 27,555 | 7.4 | % | ||||||||||||||
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Voice
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5,995 | 6,647 | -9.8 | % | 25,131 | 28,332 | -11.3 | % | ||||||||||||||||||
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Other
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1,326 | 1,390 | -4.6 | % | 5,028 | 5,413 | -7.1 | % | ||||||||||||||||||
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Total Segment Operating Revenues
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14,919 | 15,128 | -1.4 | % | 59,765 | 61,300 | -2.5 | % | ||||||||||||||||||
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Segment Operating Expenses
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Operations and support
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10,250 | 10,075 | 1.7 | % | 40,879 | 41,096 | -0.5 | % | ||||||||||||||||||
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Depreciation and amortization
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2,889 | 3,091 | -6.5 | % | 11,615 | 12,371 | -6.1 | % | ||||||||||||||||||
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Total Segment Operating Expenses
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13,139 | 13,166 | -0.2 | % | 52,494 | 53,467 | -1.8 | % | ||||||||||||||||||
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Segment Operating Income
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1,780 | 1,962 | -9.3 | % | 7,271 | 7,833 | -7.2 | % | ||||||||||||||||||
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Equity in Net Income of Affiliates
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- | 4 | - | - | 11 | - | ||||||||||||||||||||
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Segment Income
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$ | 1,780 | $ | 1,966 | -9.5 | % | $ | 7,271 | $ | 7,844 | -7.3 | % | ||||||||||||||
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Segment Operating Income Margin
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11.9 | % |
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13.0 | % | 12.2 | % |
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12.8 | % | ||||||||||||||||
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Advertising Solutions
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Segment Operating Revenues
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$ | 781 | $ | 926 | -15.7 | % | $ | 3,293 | $ | 3,935 | -16.3 | % | ||||||||||||||
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Segment Operating Expenses
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Operations and support
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558 | 626 | -10.9 | % | 2,264 | 2,583 | -12.3 | % | ||||||||||||||||||
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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 | 104 | -18.3 | % | 386 | 497 | -22.3 | % | ||||||||||||||||||
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Total Segment Operating Expenses
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3,553 | 730 | - | 5,560 | 3,080 | 80.5 | % | |||||||||||||||||||
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Segment Income (Loss)
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$ | (2,772 | ) | $ | 196 | - | $ | (2,267 | ) | $ | 855 | - | ||||||||||||||
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Segment Income Margin
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- | 21.2 | % | (68.8 | ) |
%
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21.7 | % | ||||||||||||||||||
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Other
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Segment Operating Revenues
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$ | 108 | $ | 126 | -14.3 | % | $ | 453 | $ | 545 | -16.9 | % | ||||||||||||||
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Segment Operating Expenses
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4,360 | 1,147 | - | 5,266 | 2,396 | - | ||||||||||||||||||||
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Segment Operating Loss
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(4,252 | ) | (1,021 | ) | - | (4,813 | ) | (1,851 | ) | - | ||||||||||||||||
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Equity in Net Income of Affiliates
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145 | 134 | 8.2 | % | 813 | 742 | 9.6 | % | ||||||||||||||||||
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Segment Loss from Continuing Operations
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$ | (4,107 | ) | $ | (887 | ) | - | $ | (4,000 | ) | $ | (1,109 | ) | - | ||||||||||||
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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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| 12/31/11 | 12/31/10 | ||||||
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Unaudited
|
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Assets
|
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Current Assets
|
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Cash and cash equivalents
|
$ | 3,185 | $ | 1,437 | |||
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Accounts receivable - net of allowances for
|
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doubtful accounts of $878 and $957
|
13,606 | 13,610 | |||||
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Prepaid expenses
|
1,155 | 1,458 | |||||
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Deferred income taxes
|
1,470 | 1,170 | |||||
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Other current assets
|
3,611 | 3,179 | |||||
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Total current assets
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23,027 | 20,854 | |||||
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Property, Plant and Equipment - Net
|
107,087 | 103,196 | |||||
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Goodwill
|
70,842 | 73,601 | |||||
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Licenses
|
51,374 | 50,372 | |||||
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Customer Lists and Relationships - Net
|
2,757 | 4,708 | |||||
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Other Intangible Assets - Net
|
5,212 | 5,440 | |||||
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Investments in Equity Affiliates
|
3,718 | 4,515 | |||||
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Other Assets
|
6,327 | 6,705 | |||||
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Total Assets
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$ | 270,344 | $ | 269,391 | |||
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Liabilities and Stockholders' Equity
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Current Liabilities
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Debt maturing within one year
|
$ | 3,453 | $ | 7,196 | |||
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Accounts payable and accrued liabilities
|
19,858 | 20,055 | |||||
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Advanced billing and customer deposits
|
3,872 | 4,086 | |||||
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Accrued taxes
|
1,003 | 975 | |||||
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Dividends payable
|
2,608 | 2,542 | |||||
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Total current liabilities
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30,794 | 34,854 | |||||
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Long-Term Debt
|
61,300 | 58,971 | |||||
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Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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25,748 | 22,070 | |||||
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Postemployment benefit obligation
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34,011 | 28,803 | |||||
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Other noncurrent liabilities
|
12,694 | 12,743 | |||||
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Total deferred credits and other noncurrent liabilities
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72,453 | 63,616 | |||||
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Stockholders' Equity
|
|||||||
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Common stock
|
6,495 | 6,495 | |||||
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Additional paid-in capital
|
91,156 | 91,731 | |||||
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Retained earnings
|
25,453 | 31,792 | |||||
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Treasury stock
|
(20,750 | ) | (21,083 | ) | |||
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Accumulated other comprehensive income
|
3,180 | 2,712 | |||||
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Noncontrolling interest
|
263 | 303 | |||||
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Total stockholders' equity
|
105,797 | 111,950 | |||||
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Total Liabilities and Stockholders' Equity
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$ | 270,344 | $ | 269,391 | |||
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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
|
Twelve Months Ended
|
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|
12/31/11
|
12/31/10
|
12/31/09
|
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Operating Activities
|
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Net income
|
$ | 4,184 | $ | 20,179 | $ | 12,447 | |||
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Adjustments to reconcile net income to
|
|||||||||
|
net cash provided by operating activities:
|
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Depreciation and amortization
|
18,377 | 19,379 | 19,515 | ||||||
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Undistributed earnings from investments in equity affiliates
|
(623 | ) | (603 | ) | (419 | ) | |||
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Provision for uncollectible accounts
|
1,136 | 1,334 | 1,762 | ||||||
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Deferred income tax expense (benefit) and noncurrent
|
|||||||||
|
unrecognized tax benefits
|
2,937 | (3,280 | ) | 1,885 | |||||
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Net gain from impairment and sale of investments
|
(89 | ) | (802 | ) | - | ||||
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Impairment of intangible assets
|
2,910 | 85 | - | ||||||
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Remeasurement of pension and postretirement benefits
|
6,280 | 2,521 | 215 | ||||||
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Income from discontinued operations
|
- | (779 | ) | (20 | ) | ||||
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Changes in operating assets and liabilities:
|
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Accounts receivable
|
(1,133 | ) | (99 | ) | (490 | ) | |||
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Other current assets
|
(428 | ) | (187 | ) | (617 | ) | |||
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Accounts payable and accrued liabilities
|
(383 | ) | (1,508 | ) | 943 | ||||
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Retirement benefit funding
|
(1,000 | ) | - | - | |||||
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Other - net
|
2,480 | (1,247 | ) | (816 | ) | ||||
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Total adjustments
|
30,464 | 14,814 | 21,958 | ||||||
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Net Cash Provided by Operating Activities
|
34,648 | 34,993 | 34,405 | ||||||
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Investing Activities
|
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Construction and capital expenditures:
|
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Capital expenditures
|
(20,110 | ) | (19,530 | ) | (16,554 | ) | |||
|
Interest during construction
|
(162 | ) | (772 | ) | (740 | ) | |||
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Acquisitions, net of cash acquired
|
(2,368 | ) | (2,906 | ) | (983 | ) | |||
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Dispositions
|
1,301 | 1,830 | 287 | ||||||
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(Purchases) and sales of securities, net
|
62 | (100 | ) | 55 | |||||
|
Other
|
27 | 29 | 52 | ||||||
|
Net Cash Used in Investing Activities
|
(21,250 | ) | (21,449 | ) | (17,883 | ) | |||
|
Financing Activities
|
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Net change in short-term borrowings with
|
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original maturities of three months or less
|
(1,625 | ) | 1,592 | (3,910 | ) | ||||
|
Issuance of long-term debt
|
7,936 | 2,235 | 8,161 | ||||||
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Repayment of long-term debt
|
(7,574 | ) | (9,294 | ) | (8,652 | ) | |||
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Issuance of treasury shares
|
237 | 50 | 28 | ||||||
|
Dividends paid
|
(10,172 | ) | (9,916 | ) | (9,670 | ) | |||
|
Other
|
(452 | ) | (515 | ) | (465 | ) | |||
|
Net Cash Used in Financing Activities
|
(11,650 | ) | (15,848 | ) | (14,508 | ) | |||
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Net increase (decrease) in cash and cash equivalents
|
1,748 | (2,304 | ) | 2,014 | |||||
|
Cash and cash equivalents beginning of year
|
1,437 | 3,741 | 1,727 | ||||||
|
Cash and Cash Equivalents End of Year
|
$ | 3,185 | $ | 1,437 | $ | 3,741 | |||
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Financial Data
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AT&T Inc.
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Supplementary Operating and Financial Data
|
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Dollars in millions except per share amounts
|
||||||||||||||||||||||||||
|
Unaudited
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||||||
|
12/31/2011
|
12/31/2010
|
% Chg
|
12/31/2011
|
12/31/2010
|
% Chg
|
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Wireless
|
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Volumes (000)
|
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Total
|
103,247 | 95,536 | 8.1 | % | ||||||||||||||||||||||
|
Postpaid6
|
69,309 | 68,041 | 1.9 | % | ||||||||||||||||||||||
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Prepaid6
|
7,225 | 6,524 | 10.7 | % | ||||||||||||||||||||||
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Reseller6
|
13,644 | 11,645 | 17.2 | % | ||||||||||||||||||||||
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Connected Devices6
|
13,069 | 9,326 | 40.1 | % | ||||||||||||||||||||||
|
Wireless Net Adds (000)
|
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Total
|
2,497 | 2,803 | -10.9 | % | 7,699 | 8,853 | -13.0 | % | ||||||||||||||||||
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Postpaid6
|
717 | 400 | 79.3 | % | 1,429 | 2,153 | -33.6 | % | ||||||||||||||||||
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Prepaid6
|
159 | 307 | -48.2 | % | 674 | 952 | -29.2 | % | ||||||||||||||||||
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Reseller6
|
592 | 595 | -0.5 | % | 1,874 | 1,140 | 64.4 | % | ||||||||||||||||||
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Connected Devices6
|
1,029 | 1,501 | -31.4 | % | 3,722 | 4,608 | -19.2 | % | ||||||||||||||||||
|
M&A Activity, Partitioned Customers and Other Adjs.
|
12 | (28 | ) | - | 12 | 1,563 | -99.2 | % | ||||||||||||||||||
|
Wireless Churn
|
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Postpaid Churn6
|
1.21 | % | 1.15 | % |
6 BP
|
1.18 | % | 1.09 | % |
9 BP
|
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Total Churn6
|
1.39 | % | 1.32 | % |
7 BP
|
1.37 | % | 1.31 | % |
6 BP
|
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Other
|
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Licensed POPs (000,000)
|
313 | 308 | 1.6 | % | ||||||||||||||||||||||
|
In-Region Wireline1
|
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Voice
|
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Total Wireline Voice Connections
|
39,012 | 43,563 | -10.4 | % | ||||||||||||||||||||||
|
Net Change
|
(1,086 | ) | (1,233 | ) | 11.9 | % | (4,551 | ) | (4,925 | ) | 7.6 | % | ||||||||||||||
|
Broadband
|
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Total Wireline Broadband Connections
|
16,427 | 16,309 | 0.7 | % | ||||||||||||||||||||||
|
Net Change
|
(49 | ) | 209 | - | 118 | 520 | -77.3 | % | ||||||||||||||||||
|
Video
|
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U-verse
|
3,791 | 2,987 | 26.9 | % | ||||||||||||||||||||||
|
Satellite
|
1,765 | 1,930 | -8.5 | % | ||||||||||||||||||||||
|
Total Video Connections
|
5,556 | 4,917 | 13.0 | % | ||||||||||||||||||||||
|
Net Change
|
164 | 182 | -9.9 | % | 639 | 678 | -5.8 | % | ||||||||||||||||||
|
Consumer Revenue Connections
|
||||||||||||||||||||||||||
|
Broadband3
|
14,492 | 14,320 | 1.2 | % | ||||||||||||||||||||||
|
Video Connections4
|
5,542 | 4,912 | 12.8 | % | ||||||||||||||||||||||
|
Voice2
|
21,232 | 24,195 | -12.2 | % | ||||||||||||||||||||||
|
Total Consumer Revenue Connections
|
41,266 | 43,427 | -5.0 | % | ||||||||||||||||||||||
|
Net Change
|
(586 | ) | (306 | ) | -91.5 | % | (2,161 | ) | (1,861 | ) | -16.1 | % | ||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||||
|
Construction and capital expenditures
|
||||||||||||||||||||||||||
|
Capital expenditures
|
$ | 5,485 | $ | 6,360 | -13.8 | % | $ | 20,110 | $ | 19,530 | 3.0 | % | ||||||||||||||
|
Interest during construction
|
$ | 43 | $ | 195 | -77.9 | % | $ | 162 | $ | 772 | -79.0 | % | ||||||||||||||
|
Dividends Declared per Share
|
$ | 0.44 | $ | 0.43 | 2.3 | % | $ | 1.73 | $ | 1.69 | 2.4 | % | ||||||||||||||
|
End of Period Common Shares Outstanding (000,000)
|
5,927 | 5,911 | 0.3 | % | ||||||||||||||||||||||
|
Debt Ratio5
|
38.0 | % | 37.1 | % |
90 BP
|
|||||||||||||||||||||
|
Total Employees
|
256,420 | 266,590 | -3.8 | % | ||||||||||||||||||||||
|
1
|
In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
|
|||||||||||||||||||||||||
|
2
|
Includes consumer U-verse Voice over Internet Protocol connections of 2,278 as of December 31, 2011.
|
|||||||||||||||||||||||||
|
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
|
Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
|
|||||||||||||||||||||||||
|
6
|
Prior year amounts restated to conform to current period reporting methodology.
|
|||||||||||||||||||||||||
|
Note: For the end of 4Q11, total switched access lines were 36,734, retail business switched access lines totaled 15,613, and wholesale
|
||||||||||||||||||||||||||
|
and coin switched access lines totaled 2,167.
|
||||||||||||||||||||||||||
|
Financial Data
|
||||||||||||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||||||||||
|
Non-GAAP Wireless Reconciliation
|
||||||||||||||||||||||||||||||||
|
Wireless Segment EBITDA
|
||||||||||||||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||||||||||||
|
12/31/10
|
3/31/11
|
6/30/11
|
9/30/11
|
12/31/11
|
12/31/09
|
12/31/10
|
12/31/11
|
|||||||||||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||||||||||||||
|
Service
|
$ | 13,799 | $ | 13,961 | $ | 14,157 | $ | 14,261 | $ | 14,347 | $ | 48,563 | $ | 53,510 | $ | 56,726 | ||||||||||||||||
|
Equipment
|
1,382 | 1,348 | 1,445 | 1,345 | 2,348 | 4,941 | 4,990 | 6,486 | ||||||||||||||||||||||||
|
Total Segment Operating Revenues
|
15,181 | 15,309 | 15,602 | 15,606 | 16,695 | 53,504 | 58,500 | 63,212 | ||||||||||||||||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||||||||||||||
|
Operations and support
|
9,988 | 9,858 | 9,782 | 9,367 | 12,574 | 33,631 | 36,746 | 41,581 | ||||||||||||||||||||||||
|
Depreciation and amortization
|
1,721 | 1,505 | 1,613 | 1,619 | 1,587 | 6,043 | 6,497 | 6,324 | ||||||||||||||||||||||||
|
Total Segment Operating Expenses
|
11,709 | 11,363 | 11,395 | 10,986 | 14,161 | 39,674 | 43,243 | 47,905 | ||||||||||||||||||||||||
|
Segment Operating Income
|
3,472 | 3,946 | 4,207 | 4,620 | 2,534 | 13,830 | 15,257 | 15,307 | ||||||||||||||||||||||||
|
Segment Operating Income Margin
|
22.9 | % | 25.8 | % | 27.0 | % | 29.6 | % | 15.2 | % | 25.8 | % | 26.1 | % | 24.2 | % | ||||||||||||||||
|
Plus: Depreciation and amortization
|
1,721 | 1,505 | 1,613 | 1,619 | 1,587 | 6,043 | 6,497 | 6,324 | ||||||||||||||||||||||||
|
EBITDA
|
5,193 | 5,451 | 5,820 | 6,239 | 4,121 | 19,873 | 21,754 | 21,631 | ||||||||||||||||||||||||
|
EBITDA as a % of Service Revenue
|
37.6 | % | 39.0 | % | 41.1 | % | 43.7 | % | 28.7 | % | 40.9 | % | 40.7 | % | 38.1 | % | ||||||||||||||||
|
EBITDA is defined as Earnings Before Interest, Taxes, Depreciation and Amortization. Annual Service EBITDA Margin is calculated as the sum of quarterly EBITDA divided by the sum of quarterly Service Revenues.
|
||||||||||||||||||||||||||||||||
|
Financial Data
|
||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||
|
Non-GAAP Financial Reconciliation
|
||||||||||||||||
|
Free Cash Flow
|
||||||||||||||||
|
Dollars in Millions
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
12/31/10
|
12/31/11
|
12/31/10
|
12/31/11
|
|||||||||||||
|
Net cash provided by operating activities
|
$ | 9,643 | $ | 7,498 | $ | 34,993 | $ | 34,648 | ||||||||
|
Less: Construction and capital expenditures
|
(6,555 | ) | (5,528 | ) | (20,302 | ) | (20,272 | ) | ||||||||
|
Free Cash Flow
|
$ | 3,088 | $ | 1,970 | $ | 14,691 | $ | 14,376 | ||||||||
| Free cash flow is defined as cash from operations minus construction and capital expenditures. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.
|
||||||||||||||||
|
Free Cash Flow after Dividends
|
||||||||||||||||
|
Dollars in Millions
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
12/31/10
|
12/31/11
|
12/31/10
|
12/31/11
|
|||||||||||||
|
Net cash provided by operating activities
|
$ | 9,643 | $ | 7,498 | $ | 34,993 | $ | 34,648 | ||||||||
|
Less: Construction and capital expenditures
|
(6,555 | ) | (5,528 | ) | (20,302 | ) | (20,272 | ) | ||||||||
|
Free Cash Flow
|
3,088 | 1,970 | 14,691 | 14,376 | ||||||||||||
|
Less: Dividends paid
|
(2,480 | ) | (2,545 | ) | (9,916 | ) | (10,172 | ) | ||||||||
|
Free Cash Flow After Dividends
|
$ | 608 | $ | (575 | ) | $ | 4,775 | $ | 4,204 | |||||||
|
Financial Data
|
||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||
|
Non-GAAP Financial Reconciliation
|
||||||||||||||||||||
|
Net Debt-to-Adjusted EBITDA Ratio
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/11
|
6/30/11
|
9/30/11
|
12/31/11
|
2011
|
||||||||||||||||
|
Operating Revenues
|
$ | 31,247 | $ | 31,495 | $ | 31,478 | $ | 32,503 | $ | 126,723 | ||||||||||
|
Operating Expenses
|
25,439 | 25,330 | 25,243 | 41,493 | 117,505 | |||||||||||||||
|
Total Operating Income
|
5,808 | 6,165 | 6,235 | (8,990 | ) | 9,218 | ||||||||||||||
|
Add Back Depreciation and Amortization
|
4,584 | 4,602 | 4,618 | 4,573 | 18,377 | |||||||||||||||
|
Consolidated Reported EBITDA
|
10,392 | 10,767 | 10,853 | (4,417 | ) | 27,595 | ||||||||||||||
|
Add Back:
|
||||||||||||||||||||
|
Actuarial Loss on Benefit Plan
|
6,280 | 6,280 | ||||||||||||||||||
|
Termination of T-Mobile Acquistion
|
4,181 | 4,181 | ||||||||||||||||||
|
Directory Asset Impairments
|
2,910 | 2,910 | ||||||||||||||||||
|
Consolidated Adjusted EBITDA*
|
10,392 | 10,767 | 10,853 | 8,954 | 40,966 | |||||||||||||||
|
End-of-period current debt
|
3,453 | |||||||||||||||||||
|
End-of-period long-term debt
|
61,300 | |||||||||||||||||||
|
Total End-of-Period Debt
|
64,753 | |||||||||||||||||||
|
(Premiums) Discounts on long-term debt
|
(45 | ) | ||||||||||||||||||
|
Normalized Debt Balance
|
64,708 | |||||||||||||||||||
|
Less Cash and Cash Equivalents
|
3,185 | |||||||||||||||||||
|
Normalized Net Debt Balance
|
61,523 | |||||||||||||||||||
|
Net Debt-to-Adjusted EBITDA Ratio
|
1.50 | |||||||||||||||||||
| *Adjusted EBITDA excludes the impact of the benefit plan actuarial loss, charges related to the termination of the T-Mobile acquisition and asset impairments related to the the Directory business in order to better represent AT&T's operational performance. | ||||||||||||||||||||
|
Financial Data
|
||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||
|
Non-GAAP Financial Reconciliation
|
||||||||||||||||
|
Adjusted Operating Income Margin
|
||||||||||||||||
|
Dollars in millions
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
|
12/31/10
|
12/31/11
|
12/31/10
|
12/31/11
|
|||||||||||||
|
Operating Revenues
|
$ | 31,361 | $ | 32,503 | $ | 124,280 | $ | 126,723 | ||||||||
|
Operating Expenses
|
29,273 | 41,493 | 104,707 | 117,505 | ||||||||||||
|
Total Operating Income
|
2,088 | (8,990 | ) | 19,573 | 9,218 | |||||||||||
|
Add Back:
|
||||||||||||||||
|
Actuarial Loss on Benefit Plan
|
2,521 | 6,280 | 2,521 | 6,280 | ||||||||||||
|
Termination of T-Mobile Acquisition
|
4,181 | - | 4,181 | |||||||||||||
|
Asset Impairments
|
173 | 2,910 | 173 | 2,910 | ||||||||||||
|
Severance Costs
|
769 | 769 | - | |||||||||||||
|
Adjusted Operating Income
|
5,551 | 4,381 | 23,036 | 22,589 | ||||||||||||
|
Adjusted Operating Income Margin
|
17.7 | % | 13.5 | % | 18.5 | % | 17.8 | % | ||||||||
| Adjusted Operating Income and Adjusted Operating Income Margin are 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 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 Adjusted Operating Income 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, 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
|
|||||||||||||||
|
12/31/10
|
12/31/11
|
12/31/10
|
12/31/11
|
|||||||||||||
|
Reported Diluted EPS
|
$ | 0.18 | $ | (1.12 | ) | $ | 3.35 | $ | 0.66 | |||||||
|
Significant Items:
|
||||||||||||||||
|
Actuarial Loss on Benefit Plan
|
(0.26 | ) | (0.65 | ) | (0.26 | ) | (0.65 | ) | ||||||||
|
Termination of T-Mobile Acquisition
|
- | (0.44 | ) | - | (0.44 | ) | ||||||||||
|
Asset Impairments*
|
(0.02 | ) | (0.48 | ) | (0.02 | ) | (0.48 | ) | ||||||||
|
Tax Settlement
|
- | 0.03 | 1.40 | 0.03 | ||||||||||||
|
Severance
|
(0.09 | ) | - | (0.09 | ) | - | ||||||||||
|
Gain from Sterling Sale
|
- | - | 0.13 | - | ||||||||||||
|
Gain on Telmex Internacional Transaction
|
- | - | 0.07 | - | ||||||||||||
|
Tax Impact of Medicare Subsidy
|
- | - | (0.17 | ) | - | |||||||||||
|
Adjusted Diluted EPS
|
$ | 0.55 | $ | 0.42 | 2.29 | $ | 2.20 | |||||||||
| *Impairments in 2011 were all from intangible assets. Impairments in 2010 comprised several asset classes.
Adjusted diluted EPS 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 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.
|
||||||||||||||||