Attached files
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| 8-K - AT&T INC. Q1 2013 EARNINGS 801-8K - AT&T INC. | q1earnings801_8k.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
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Three Months Ended
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3/31/2013
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3/31/2012
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% Chg
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Operating Revenues
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$ | 31,356 | $ | 31,822 | -1.5 | % | |||||
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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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12,554 | 12,817 | -2.1 | % | |||||||
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Selling, general and administrative
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8,333 | 8,344 | -0.1 | % | |||||||
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Depreciation and amortization
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4,529 | 4,560 | -0.7 | % | |||||||
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Total Operating Expenses
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25,416 | 25,721 | -1.2 | % | |||||||
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Operating Income
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5,940 | 6,101 | -2.6 | % | |||||||
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Interest Expense
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827 | 859 | -3.7 | % | |||||||
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Equity in Net Income of Affiliates
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185 | 223 | -17.0 | % | |||||||
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Other Income (Expense) - Net
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32 | 52 | -38.5 | % | |||||||
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Income Before Income Taxes
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5,330 | 5,517 | -3.4 | % | |||||||
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Income Tax Expense
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1,557 | 1,865 | -16.5 | % | |||||||
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Net Income
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3,773 | 3,652 | 3.3 | % | |||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(73 | ) | (68 | ) | -7.4 | % | |||||
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Net Income Attributable to AT&T
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$ | 3,700 | $ | 3,584 | 3.2 | % | |||||
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Basic Earnings Per Share Attributable to AT&T
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$ | 0.67 | $ | 0.60 | 11.7 | % | |||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,513 | 5,918 | -6.8 | % | |||||||
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Diluted Earnings Per Share Attributable to AT&T
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$ | 0.67 | $ | 0.60 | 11.7 | % | |||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,530 | 5,940 | -6.9 | % | |||||||
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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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Wireless
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3/31/2013
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3/31/2012
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% Chg
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Segment Operating Revenues
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Data
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$ | 5,125 | $ | 4,235 | 21.0 |
%
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Voice, text and other service
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9,937 | 10,331 | -3.8 |
%
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Equipment
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1,629 | 1,570 | 3.8 |
%
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Total Segment Operating Revenues
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16,691 | 16,136 | 3.4 |
%
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Segment Operating Expenses
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Operations and support
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10,180 | 9,978 | 2.0 |
%
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Depreciation and amortization
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1,835 | 1,666 | 10.1 |
%
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Total Segment Operating Expenses
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12,015 | 11,644 | 3.2 |
%
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Segment Operating Income
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4,676 | 4,492 | 4.1 |
%
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Equity in Net Income (Loss) of Affiliates
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(18 | ) | (13 | ) | -38.5 |
%
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Segment Income
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$ | 4,658 | $ | 4,479 | 4.0 |
%
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Segment Operating Income Margin
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28.0 |
%
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27.8 |
%
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Wireline
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Segment Operating Revenues
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Data
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$ | 8,162 | $ | 7,800 | 4.6 |
%
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Voice
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5,306 | 5,892 | -9.9 |
%
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Other
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1,187 | 1,237 | -4.0 |
%
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Total Segment Operating Revenues
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14,655 | 14,929 | -1.8 |
%
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Segment Operating Expenses
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Operations and support
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10,335 | 10,402 | -0.6 |
%
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Depreciation and amortization
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2,688 | 2,808 | -4.3 |
%
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Total Segment Operating Expenses
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13,023 | 13,210 | -1.4 |
%
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Segment Operating Income
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1,632 | 1,719 | -5.1 |
%
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Equity in Net Income of Affiliates
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1 | - | - | ||||||||
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Segment Income
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$ | 1,633 | $ | 1,719 | -5.0 |
%
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Segment Operating Income Margin
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11.1 |
%
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11.5 |
%
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Advertising Solutions
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Segment Operating Revenues
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$ | - | $ | 744 | - | ||||||
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Segment Operating Expenses
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Operations and support
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- | 547 | - | ||||||||
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Depreciation and amortization
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- | 77 | - | ||||||||
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Total Segment Operating Expenses
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- | 624 | - | ||||||||
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Segment Income
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$ | - | $ | 120 | - | ||||||
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Segment Income Margin
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- | 16.1 |
%
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Other
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Segment Operating Revenues
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$ | 10 | $ | 13 | -23.1 |
%
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Segment Operating Expenses
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378 | 243 | 55.6 |
%
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Segment Operating Income (Loss)
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(368 | ) | (230 | ) | -60.0 |
%
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Equity in Net Income of Affiliates
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202 | 236 | -14.4 |
%
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Segment Income (Loss)
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$ | (166 | ) | $ | 6 | - | |||||
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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
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03/31/2013
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12/31/2012
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Unaudited
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Assets
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Current Assets
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Cash and cash equivalents
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$ | 3,875 | $ | 4,868 | ||||
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Accounts receivable - net of allowances for
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doubtful accounts of $547 and $547
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12,100 | 12,657 | ||||||
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Prepaid expenses
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1,021 | 1,035 | ||||||
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Deferred income taxes
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980 | 1,036 | ||||||
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Other current assets
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2,396 | 3,110 | ||||||
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Total current assets
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20,372 | 22,706 | ||||||
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Property, Plant and Equipment - Net
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109,702 | 109,767 | ||||||
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Goodwill
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69,772 | 69,773 | ||||||
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Licenses
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53,507 | 52,352 | ||||||
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Customer Lists and Relationships - Net
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1,190 | 1,391 | ||||||
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Other Intangible Assets - Net
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5,022 | 5,032 | ||||||
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Investments in and Advances to Equity Affiliates
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4,998 | 4,581 | ||||||
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Other Assets
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6,431 | 6,713 | ||||||
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Total Assets
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$ | 270,994 | $ | 272,315 | ||||
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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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$ | 3,446 | $ | 3,486 | ||||
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Accounts payable and accrued liabilities
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17,523 | 20,494 | ||||||
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Advanced billing and customer deposits
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4,167 | 4,225 | ||||||
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Accrued taxes
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2,210 | 1,026 | ||||||
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Dividends payable
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2,440 | 2,556 | ||||||
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Total current liabilities
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29,786 | 31,787 | ||||||
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Long-Term Debt
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70,686 | 66,358 | ||||||
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Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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28,918 | 28,491 | ||||||
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Postemployment benefit obligation
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41,663 | 41,392 | ||||||
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Other noncurrent liabilities
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11,603 | 11,592 | ||||||
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Total deferred credits and other noncurrent liabilities
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82,184 | 81,475 | ||||||
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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
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90,940 | 91,038 | ||||||
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Retained earnings
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23,787 | 22,481 | ||||||
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Treasury stock
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(38,568 | ) | (32,888 | ) | ||||
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Accumulated other comprehensive income
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5,344 | 5,236 | ||||||
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Noncontrolling interest
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340 | 333 | ||||||
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Total stockholders' equity
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88,338 | 92,695 | ||||||
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Total Liabilities and Stockholders' Equity
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$ | 270,994 | $ | 272,315 | ||||
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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
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Three Months Ended March 31,
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2013
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2012
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Operating Activities
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Net income
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$ | 3,773 | $ | 3,652 | ||||
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Adjustments to reconcile net income to
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net cash provided by operating activities:
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Depreciation and amortization
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4,529 | 4,560 | ||||||
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Undistributed earnings from investments in equity affiliates
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(185 | ) | (223 | ) | ||||
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Provision for uncollectible accounts
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262 | 328 | ||||||
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Deferred income tax expense and noncurrent
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unrecognized tax benefits
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509 | 337 | ||||||
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Net (gain) loss from sale of investments, net of impairments
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(11 | ) | (9 | ) | ||||
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Changes in operating assets and liabilities:
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Accounts receivable
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295 | 73 | ||||||
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Other current assets
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864 | 1,120 | ||||||
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Accounts payable and accrued liabilities
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(1,675 | ) | (1,655 | ) | ||||
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Other - net
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(162 | ) | (338 | ) | ||||
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Total adjustments
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4,426 | 4,193 | ||||||
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Net Cash Provided by Operating Activities
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8,199 | 7,845 | ||||||
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Investing Activities
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Construction and capital expenditures:
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Capital expenditures
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(4,252 | ) | (4,261 | ) | ||||
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Interest during construction
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(66 | ) | (65 | ) | ||||
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Acquisitions, net of cash acquired
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(1,045 | ) | (433 | ) | ||||
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Dispositions
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5 | 16 | ||||||
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Sales (purchases) of securities, net
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- | 5 | ||||||
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Other
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1 | 1 | ||||||
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Net Cash Used in Investing Activities
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(5,357 | ) | (4,737 | ) | ||||
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Financing Activities
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Net change in short-term borrowings with
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original maturities of three months or less
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274 | - | ||||||
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Issuance of other short-term borrowings
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1,474 | - | ||||||
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Issuance of long-term debt
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4,875 | 2,986 | ||||||
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Repayment of long-term debt
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(1,791 | ) | (2,204 | ) | ||||
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Purchase of treasury stock
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(5,911 | ) | (2,066 | ) | ||||
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Issuance of treasury stock
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56 | 218 | ||||||
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Dividends paid
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(2,502 | ) | (2,606 | ) | ||||
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Other
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(310 | ) | (130 | ) | ||||
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Net Cash Used in Financing Activities
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(3,835 | ) | (3,802 | ) | ||||
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Net decrease in cash and cash equivalents
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(993 | ) | (694 | ) | ||||
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Cash and cash equivalents beginning of year
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4,868 | 3,045 | ||||||
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Cash and Cash Equivalents End of Period
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$ | 3,875 | $ | 2,351 | ||||
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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, subscribers and connections in (000s)
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Unaudited
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Three Months Ended
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3/31/2013
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3/31/2012
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% Chg
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Wireless
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Volumes
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Total
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107,251 | 103,940 | 3.2 | % | |||||||||
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Postpaid
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70,749 | 69,403 | 1.9 | % | |||||||||
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Prepaid
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7,104 | 7,368 | -3.6 | % | |||||||||
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Reseller
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14,702 | 13,869 | 6.0 | % | |||||||||
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Connected Devices
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14,696 | 13,300 | 10.5 | % | |||||||||
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Wireless Net Adds
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Total
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291 | 726 | -59.9 | % | |||||||||
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Postpaid
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296 | 187 | 58.3 | % | |||||||||
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Prepaid
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(184 | ) | 125 | - | |||||||||
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Reseller
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(252 | ) | 184 | - | |||||||||
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Connected Devices
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431 | 230 | 87.4 | % | |||||||||
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M&A Activity, Partitioned Customers and Other Adjs.
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3 | (33 | ) | - | |||||||||
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Wireless Churn
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Postpaid Churn
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1.04 | % | 1.10 | % |
-6 BP
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Total Churn
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1.38 | % | 1.47 | % |
-9 BP
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Other
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Licensed POPs (000,000)
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317 | 313 | 1.3 | % | |||||||||
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Wireline
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Voice
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Total Wireline Voice Connections1
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31,163 | 35,206 | -11.5 | % | |||||||||
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Net Change
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(1,021 | ) | (1,126 | ) | 9.3 | % | |||||||
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Broadband
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Total Wireline Broadband Connections
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16,514 | 16,530 | -0.1 | % | |||||||||
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Net Change
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124 | 103 | 20.4 | % | |||||||||
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Video
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Total U-verse Video Connections
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4,768 | 3,991 | 19.5 | % | |||||||||
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Net Change
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232 | 200 | 16.0 | % | |||||||||
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Consumer Revenue Connections
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Broadband2
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14,686 | 14,595 | 0.6 | % | |||||||||
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U-verse Video Connections1
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4,755 | 3,983 | 19.4 | % | |||||||||
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Voice1,3
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17,960 | 20,534 | -12.5 | % | |||||||||
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Total Consumer Revenue Connections1
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37,401 | 39,112 | -4.4 | % | |||||||||
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Net Change
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(266 | ) | (394 | ) | 32.5 | % | |||||||
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AT&T Inc.
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Construction and capital expenditures
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Capital expenditures
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$ | 4,252 | $ | 4,261 | -0.2 | % | |||||||
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Interest during construction
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$ | 66 | $ | 65 | 1.5 | % | |||||||
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Dividends Declared per Share
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$ | 0.45 | $ | 0.44 | 2.3 | % | |||||||
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End of Period Common Shares Outstanding (000,000)
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5,423 | 5,875 | -7.7 | % | |||||||||
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Debt Ratio4
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45.6 | % | 38.4 | % |
720 BP
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Total Employees
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243,340 | 252,330 | -3.6 | % | |||||||||
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1
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Prior year amounts restated to conform to current period reporting methodology.
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2
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Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
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3
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Includes consumer U-verse Voice over Internet Protocol connections of 3,120 as of March 31, 2013.
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4
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Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
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Note: For the end of 1Q13, total switched access lines were 28,043, retail business switched access lines totaled 11,185, and wholesale,
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national mass markets and coin switched access lines totaled 2,018. Restated switched access lines do not include ISDN lines.
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