Attached files
| file | filename |
|---|---|
| 8-K - AT&T INC., 3RD QTR 2013 EARNINGS RELEASE - AT&T INC. | q3earnings801_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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Nine Months Ended
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9/30/2013
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9/30/2012
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% Chg
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9/30/2013
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9/30/2012
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% Chg
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Operating Revenues
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$ | 32,158 | $ | 31,459 | 2.2 | % | $ | 95,589 | $ | 94,856 | 0.8 | % | |||||||||||
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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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13,403 | 12,602 | 6.4 | % | 39,227 | 37,673 | 4.1 | % | |||||||||||||||
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Selling, general and administrative
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7,952 | 8,308 | -4.3 | % | 24,406 | 24,657 | -1.0 | % | |||||||||||||||
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Depreciation and amortization
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4,615 | 4,512 | 2.3 | % | 13,715 | 13,571 | 1.1 | % | |||||||||||||||
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Total Operating Expenses
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25,970 | 25,422 | 2.2 | % | 77,348 | 75,901 | 1.9 | % | |||||||||||||||
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Operating Income
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6,188 | 6,037 | 2.5 | % | 18,241 | 18,955 | -3.8 | % | |||||||||||||||
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Interest Expense
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829 | 824 | 0.6 | % | 2,481 | 2,624 | -5.4 | % | |||||||||||||||
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Equity in Net Income of Affiliates
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91 | 182 | -50.0 | % | 494 | 537 | -8.0 | % | |||||||||||||||
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Other Income (Expense) - Net
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50 | 47 | 6.4 | % | 370 | 122 | - | ||||||||||||||||
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Income Before Income Taxes
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5,500 | 5,442 | 1.1 | % | 16,624 | 16,990 | -2.2 | % | |||||||||||||||
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Income Tax Expense
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1,595 | 1,741 | -8.4 | % | 5,066 | 5,672 | -10.7 | % | |||||||||||||||
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Net Income
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3,905 | 3,701 | 5.5 | % | 11,558 | 11,318 | 2.1 | % | |||||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(91 | ) | (66 | ) | -37.9 | % | (222 | ) | (197 | ) | -12.7 | % | |||||||||||
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Net Income Attributable to AT&T
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$ | 3,814 | $ | 3,635 | 4.9 | % | $ | 11,336 | $ | 11,121 | 1.9 | % | |||||||||||
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Basic Earnings Per Share Attributable to AT&T
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$ | 0.72 | $ | 0.63 | 14.3 | % | $ | 2.10 | $ | 1.90 | 10.5 | % | |||||||||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,315 | 5,771 | -7.9 | % | 5,402 | 5,848 | -7.6 | % | |||||||||||||||
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Diluted Earnings Per Share Attributable to AT&T
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$ | 0.72 | $ | 0.63 | 14.3 | % | $ | 2.09 | $ | 1.90 | 10.0 | % | |||||||||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,331 | 5,792 | -8.0 | % | 5,419 | 5,869 | -7.7 | % | |||||||||||||||
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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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Nine Months Ended
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Wireless
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9/30/2013
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9/30/2012
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% Chg
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9/30/2013
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9/30/2012
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% Chg
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Segment Operating Revenues
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Data
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$ | 5,509 | $ | 4,686 | 17.6 | % | $ | 15,990 | $ | 13,392 | 19.4 | % | |||||||
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Voice, text and other service
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9,951 | 10,220 | -2.6 | % | 29,902 | 30,845 | -3.1 | % | |||||||||||
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Equipment
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2,020 | 1,726 | 17.0 | % | 5,570 | 4,884 | 14.0 | % | |||||||||||
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Total Segment Operating Revenues
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17,480 | 16,632 | 5.1 | % | 51,462 | 49,121 | 4.8 | % | |||||||||||
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Segment Operating Expenses
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Operations and support
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10,982 | 10,432 | 5.3 | % | 31,932 | 30,000 | 6.4 | % | |||||||||||
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Depreciation and amortization
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1,875 | 1,730 | 8.4 | % | 5,553 | 5,092 | 9.1 | % | |||||||||||
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Total Segment Operating Expenses
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12,857 | 12,162 | 5.7 | % | 37,485 | 35,092 | 6.8 | % | |||||||||||
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Segment Operating Income
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4,623 | 4,470 | 3.4 | % | 13,977 | 14,029 | -0.4 | % | |||||||||||
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Equity in Net Income (Loss) of Affiliates
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(18 | ) | (17 | ) | -5.9 | % | (55 | ) | (45 | ) | -22.2 | % | |||||||
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Segment Income
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$ | 4,605 | $ | 4,453 | 3.4 | % | $ | 13,922 | $ | 13,984 | -0.4 | % | |||||||
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Segment Operating Income Margin
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26.4 |
%
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26.9 | % | 27.2 |
%
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28.6 | % | |||||||||||
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Wireline
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Segment Operating Revenues
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Data
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$ | 8,457 | $ | 7,987 | 5.9 | % | $ | 25,019 | $ | 23,722 | 5.5 | % | |||||||
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Voice
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5,023 | 5,563 | -9.7 | % | 15,470 | 17,151 | -9.8 | % | |||||||||||
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Other
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1,190 | 1,264 | -5.9 | % | 3,609 | 3,777 | -4.4 | % | |||||||||||
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Total Segment Operating Revenues
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14,670 | 14,814 | -1.0 | % | 44,098 | 44,650 | -1.2 | % | |||||||||||
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Segment Operating Expenses
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Operations and support
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10,385 | 10,246 | 1.4 | % | 31,137 | 30,849 | 0.9 | % | |||||||||||
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Depreciation and amortization
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2,736 | 2,774 | -1.4 | % | 8,146 | 8,348 | -2.4 | % | |||||||||||
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Total Segment Operating Expenses
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13,121 | 13,020 | 0.8 | % | 39,283 | 39,197 | 0.2 | % | |||||||||||
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Segment Operating Income
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1,549 | 1,794 | -13.7 | % | 4,815 | 5,453 | -11.7 | % | |||||||||||
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Equity in Net Income (Loss) of Affiliates
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- | - | - | 1 | (1 | ) | - | ||||||||||||
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Segment Income
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$ | 1,549 | $ | 1,794 | -13.7 | % | $ | 4,816 | $ | 5,452 | -11.7 | % | |||||||
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Segment Operating Income Margin
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10.6 |
%
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12.1 | % | 10.9 |
%
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12.2 | % | |||||||||||
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Advertising Solutions
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Segment Operating Revenues
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$ | - | $ | - | - | $ | - | $ | 1,049 | - | |||||||||
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Segment Operating Expenses
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Operations and support
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- | - | - | - | 773 | - | |||||||||||||
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Depreciation and amortization
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- | - | - | - | 106 | - | |||||||||||||
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Total Segment Operating Expenses
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- | - | - | - | 879 | - | |||||||||||||
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Segment Income
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$ | - | $ | - | - | $ | - | $ | 170 | - | |||||||||
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Segment Income Margin
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- | - | - | 16.2 | % | ||||||||||||||
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Other
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Segment Operating Revenues
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$ | 8 | $ | 13 | -38.5 | % | $ | 29 | $ | 36 | -19.4 | % | |||||||
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Segment Operating Expenses
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(8 | ) | 240 | - | 580 | 733 | -20.9 | % | |||||||||||
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Segment Operating Income (Loss)
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16 | (227 | ) | - | (551 | ) | (697 | ) | 20.9 | % | |||||||||
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Equity in Net Income of Affiliates
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109 | 199 | -45.2 | % | 548 | 583 | -6.0 | % | |||||||||||
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Segment Income (Loss)
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$ | 125 | $ | (28 | ) | - | $ | (3 | ) | $ | (114 | ) | 97.4 | % | |||||
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Financial Data
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AT&T Inc.
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Consolidated Balance Sheets
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Dollars in millions
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9/30/13
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12/31/12
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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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$ | 1,371 | $ | 4,868 | |||
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Accounts receivable - net of allowances for doubtful accounts of $491 and $547
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12,444 | 12,657 | |||||
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Prepaid expenses
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1,022 | 1,035 | |||||
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Deferred income taxes
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682 | 1,036 | |||||
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Other current assets
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2,916 | 3,110 | |||||
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Total current assets
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18,435 | 22,706 | |||||
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Property, Plant and Equipment - Net
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112,424 | 109,767 | |||||
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Goodwill
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70,014 | 69,773 | |||||
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Licenses
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56,304 | 52,352 | |||||
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Customer Lists and Relationships - Net
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876 | 1,391 | |||||
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Other Intangible Assets - Net
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5,020 | 5,032 | |||||
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Investments in and Advances to Equity Affiliates
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3,949 | 4,581 | |||||
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Other Assets
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7,577 | 6,713 | |||||
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Total Assets
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$ | 274,599 | $ | 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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$ | 7,873 | $ | 3,486 | |||
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Accounts payable and accrued liabilities
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20,433 | 20,494 | |||||
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Advanced billing and customer deposits
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4,013 | 4,225 | |||||
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Accrued taxes
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1,488 | 1,026 | |||||
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Dividends payable
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2,376 | 2,556 | |||||
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Total current liabilities
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36,183 | 31,787 | |||||
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Long-Term Debt
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68,350 | 66,358 | |||||
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Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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30,666 | 28,491 | |||||
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Postemployment benefit obligation
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42,036 | 41,392 | |||||
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Other noncurrent liabilities
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11,234 | 11,592 | |||||
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Total deferred credits and other noncurrent liabilities
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83,936 | 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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91,021 | 91,038 | |||||
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Retained earnings
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26,648 | 22,481 | |||||
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Treasury stock
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(43,731 | ) | (32,888 | ) | |||
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Accumulated other comprehensive income
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5,282 | 5,236 | |||||
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Noncontrolling interest
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415 | 333 | |||||
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Total stockholders' equity
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86,130 | 92,695 | |||||
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Total Liabilities and Stockholders' Equity
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$ | 274,599 | $ | 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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Nine Months Ended September 30,
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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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$ | 11,558 | $ | 11,318 | |||
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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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13,715 | 13,571 | |||||
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Undistributed earnings from investments in equity affiliates
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(232 | ) | (483 | ) | |||
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Provision for uncollectible accounts
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653 | 835 | |||||
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Deferred income tax expense and noncurrent
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unrecognized tax benefits
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2,389 | 3,441 | |||||
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Net (gain) loss from sale of investments, net of impairments
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(272 | ) | (27 | ) | |||
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Changes in operating assets and liabilities:
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Accounts receivable
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(440 | ) | (571 | ) | |||
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Other current assets
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520 | 1,581 | |||||
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Accounts payable and accrued liabilities
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(420 | ) | (156 | ) | |||
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Retirement benefit funding
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(175 | ) | - | ||||
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Other - net
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(417 | ) | (853 | ) | |||
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Total adjustments
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15,321 | 17,338 | |||||
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Net Cash Provided by Operating Activities
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26,879 | 28,656 | |||||
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Investing Activities
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Construction and capital expenditures:
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Capital expenditures
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(15,565 | ) | (13,619 | ) | |||
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Interest during construction
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(213 | ) | (197 | ) | |||
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Acquisitions, net of cash acquired
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(4,025 | ) | (551 | ) | |||
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Dispositions
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846 | 807 | |||||
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Sales (purchases) of securities, net
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- | 311 | |||||
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Return of advances to and investments in equity affiliates
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301 | - | |||||
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Other
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(4 | ) | (2 | ) | |||
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Net Cash Used in Investing Activities
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(18,660 | ) | (13,251 | ) | |||
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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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1,851 | - | |||||
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Issuance of other short-term borrowings
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1,476 | - | |||||
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Repayment of other short-term borrowings
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(1,476 | ) | - | ||||
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Issuance of long-term debt
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6,416 | 6,935 | |||||
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Repayment of long-term debt
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(2,131 | ) | (8,042 | ) | |||
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Purchase of treasury stock
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(11,134 | ) | (8,374 | ) | |||
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Issuance of treasury stock
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108 | 460 | |||||
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Dividends paid
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(7,325 | ) | (7,738 | ) | |||
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Other
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499 | 98 | |||||
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Net Cash Used in Financing Activities
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(11,716 | ) | (16,661 | ) | |||
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Net decrease in cash and cash equivalents
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(3,497 | ) | (1,256 | ) | |||
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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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$ | 1,371 | $ | 1,789 | |||
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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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Nine Months Ended
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9/30/2013
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9/30/2012
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% Chg
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9/30/2013
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9/30/2012
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% Chg
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Wireless
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Subscribers and Connections
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Total
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109,460 | 105,871 | 3.4 | % | |||||||||||||||||
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Postpaid
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72,032 | 69,747 | 3.3 | % | |||||||||||||||||
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Prepaid
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7,425 | 7,545 | -1.6 | % | |||||||||||||||||
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Reseller
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14,089 | 14,573 | -3.3 | % | |||||||||||||||||
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Connected Devices
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15,914 | 14,006 | 13.6 | % | |||||||||||||||||
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Wireless Net Adds
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Total
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989 | 678 | 45.9 | % | 1,912 | 2,670 | -28.4 | % | |||||||||||||
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Postpaid
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363 | 151 | - | 1,210 | 658 | 83.9 | % | ||||||||||||||
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Prepaid
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192 | 77 | - | 19 | 294 | -93.5 | % | ||||||||||||||
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Reseller
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(285 | ) | 137 | - | (951 | ) | 793 | - | |||||||||||||
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Connected Devices
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719 | 313 | - | 1,634 | 925 | 76.6 | % | ||||||||||||||
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M&A Activity, Partitioned Customers and Other Adjs.
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587 | (13 | ) | - | 591 | (46 | ) | - | |||||||||||||
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Wireless Churn
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Postpaid Churn
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1.07 | % | 1.08 | % |
-1 BP
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1.04 | % | 1.05 | % |
-1 BP
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Total Churn
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1.31 | % | 1.34 | % |
-3 BP
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1.35 | % | 1.33 | % |
2 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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29,296 | 33,176 | -11.7 | % | |||||||||||||||||
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Net Change
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(932 | ) | (995 | ) | 6.3 | % | (2,888 | ) | (3,156 | ) | 8.5 | % | |||||||||
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Broadband
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Total Wireline Broadband Connections
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16,427 | 16,392 | 0.2 | % | |||||||||||||||||
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Net Change
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(26 | ) | (42 | ) | 38.1 | % | 37 | (35 | ) | - | |||||||||||
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Video
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Total U-verse Video Connections
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5,266 | 4,344 | 21.2 | % | |||||||||||||||||
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Net Change
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265 | 198 | 33.8 | % | 730 | 553 | 32.0 | % | |||||||||||||
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Consumer Revenue Connections
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Broadband2
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14,665 | 14,501 | 1.1 | % | |||||||||||||||||
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U-verse Video Connections1
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5,249 | 4,333 | 21.1 | % | |||||||||||||||||
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Voice1,3
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16,749 | 19,219 | -12.9 | % | |||||||||||||||||
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Total Consumer Revenue Connections1
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36,663 | 38,053 | -3.7 | % | |||||||||||||||||
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Net Change
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(345 | ) | (466 | ) | 26.0 | % | (1,004 | ) | (1,453 | ) | 30.9 | % | |||||||||
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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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$ | 5,900 | $ | 4,877 | 21.0 | % | $ | 15,565 | $ | 13,619 | 14.3 | % | |||||||||
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Interest during construction
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$ | 73 | $ | 67 | 9.0 | % | $ | 213 | $ | 197 | 8.1 | % | |||||||||
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Dividends Declared per Share
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$ | 0.45 | $ | 0.44 | 2.3 | % | $ | 1.35 | $ | 1.32 | 2.3 | % | |||||||||
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End of Period Common Shares Outstanding (000,000)
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5,280 | 5,707 | -7.5 | % | |||||||||||||||||
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Debt Ratio4
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46.9 | % | 38.6 | % |
830 BP
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Total Employees
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246,740 | 241,130 | 2.3 | % | |||||||||||||||||
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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 3,616 as of September 30, 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 3Q13, total switched access lines were 25,680, retail business switched access lines totaled 10,633, and wholesale,
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national mass markets and coin switched access lines totaled 1,914. Restated switched access lines do not include ISDN lines.
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