Attached files
| file | filename |
|---|---|
| 8-K - AT&T INC. 4TH QTR 2013 EARNINGS RELEASE 8-K - AT&T INC. | q4earnings801_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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Twelve Months Ended
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12/31/2013
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12/31/2012
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% Chg
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12/31/2013
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12/31/2012
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% Chg
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Operating Revenues
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$ | 33,163 | $ | 32,578 | 1.8 | % | $ | 128,752 | $ | 127,434 | 1.0 | % | |||||||
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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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12,237 | 17,555 | -30.3 | % | 51,464 | 55,228 | -6.8 | % | |||||||||||
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Selling, general and administrative
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4,008 | 16,409 | -75.6 | % | 28,414 | 41,066 | -30.8 | % | |||||||||||
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Depreciation and amortization
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4,680 | 4,572 | 2.4 | % | 18,395 | 18,143 | 1.4 | % | |||||||||||
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Total Operating Expenses
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20,925 | 38,536 | -45.7 | % | 98,273 | 114,437 | -14.1 | % | |||||||||||
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Operating Income (Loss)
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12,238 | (5,958 | ) | - | 30,479 | 12,997 | - | ||||||||||||
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Interest Expense
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1,459 | 820 | 77.9 | % | 3,940 | 3,444 | 14.4 | % | |||||||||||
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Equity in Net Income of Affiliates
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148 | 215 | -31.2 | % | 642 | 752 | -14.6 | % | |||||||||||
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Other Income (Expense) - Net
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226 | 12 | - | 596 | 134 | - | |||||||||||||
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Income (Loss) Before Income Taxes
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11,153 | (6,551 | ) | - | 27,777 | 10,439 | - | ||||||||||||
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Income Tax Expense (Benefit)
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4,158 | (2,772 | ) | - | 9,224 | 2,900 | - | ||||||||||||
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Net Income (Loss)
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6,995 | (3,779 | ) | - | 18,553 | 7,539 | - | ||||||||||||
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Less: Net Income Attributable to Noncontrolling Interest
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(82 | ) | (78 | ) | -5.1 | % | (304 | ) | (275 | ) | -10.5 | % | |||||||
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Net Income (Loss) Attributable to AT&T
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$ | 6,913 | $ | (3,857 | ) | - | $ | 18,249 | $ | 7,264 | - | ||||||||
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Basic Earnings Per Share Attributable to AT&T
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$ | 1.31 | $ | (0.68 | ) | - | $ | 3.39 | $ | 1.25 | - | ||||||||
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Weighted Average Common
Shares Outstanding (000,000)
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5,267 | 5,661 | -7.0 | % | 5,368 | 5,801 | -7.5 | % | |||||||||||
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Diluted Earnings Per Share Attributable to AT&T
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$ | 1.31 | $ | (0.68 | ) | - | $ | 3.39 | $ | 1.25 | - | ||||||||
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Weighted Average Common
Shares Outstanding with Dilution (000,000)
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5,283 | 5,680 | -7.0 | % | 5,385 | 5,821 | -7.5 | % | |||||||||||
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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
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12/31/2013
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12/31/2012
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% Chg
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12/31/2013
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12/31/2012
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% Chg
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Segment Operating Revenues
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Data
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$ | 5,729 | $ | 4,905 | 16.8 | % | $ | 21,719 | $ | 18,297 | 18.7 | % | |||||||||
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Voice, text and other service
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9,931 | 10,044 | -1.1 | % | 39,833 | 40,889 | -2.6 | % | |||||||||||||
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Equipment
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2,777 | 2,693 | 3.1 | % | 8,347 | 7,577 | 10.2 | % | |||||||||||||
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Total Segment Operating Revenues
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18,437 | 17,642 | 4.5 | % | 69,899 | 66,763 | 4.7 | % | |||||||||||||
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Segment Operating Expenses
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Operations and support
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12,576 | 13,296 | -5.4 | % | 44,508 | 43,296 | 2.8 | % | |||||||||||||
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Depreciation and amortization
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1,915 | 1,781 | 7.5 | % | 7,468 | 6,873 | 8.7 | % | |||||||||||||
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Total Segment Operating Expenses
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14,491 | 15,077 | -3.9 | % | 51,976 | 50,169 | 3.6 | % | |||||||||||||
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Segment Operating Income
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3,946 | 2,565 | 53.8 | % | 17,923 | 16,594 | 8.0 | % | |||||||||||||
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Equity in Net Income (Loss) of Affiliates
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(20 | ) | (17 | ) | -17.6 | % | (75 | ) | (62 | ) | -21.0 | % | |||||||||
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Segment Income
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$ | 3,926 | $ | 2,548 | 54.1 | % | $ | 17,848 | $ | 16,532 | 8.0 | % | |||||||||
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Segment Operating Income Margin
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21.4 | % | 14.5 | % | 25.6 | % | 24.9 | % | |||||||||||||
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Wireline
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Segment Operating Revenues
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Data
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$ | 8,574 | $ | 8,119 | 5.6 | % | $ | 33,593 | $ | 31,841 | 5.5 | % | |||||||||
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Voice
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4,863 | 5,463 | -11.0 | % | 20,333 | 22,614 | -10.1 | % | |||||||||||||
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Other
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1,279 | 1,341 | -4.6 | % | 4,888 | 5,118 | -4.5 | % | |||||||||||||
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Total Segment Operating Revenues
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14,716 | 14,923 | -1.4 | % | 58,814 | 59,573 | -1.3 | % | |||||||||||||
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Segment Operating Expenses
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Operations and support
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10,501 | 10,358 | 1.4 | % | 41,638 | 41,207 | 1.0 | % | |||||||||||||
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Depreciation and amortization
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2,761 | 2,775 | -0.5 | % | 10,907 | 11,123 | -1.9 | % | |||||||||||||
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Total Segment Operating Expenses
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13,262 | 13,133 | 1.0 | % | 52,545 | 52,330 | 0.4 | % | |||||||||||||
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Segment Operating Income
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1,454 | 1,790 | -18.8 | % | 6,269 | 7,243 | -13.4 | % | |||||||||||||
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Equity in Net Income (Loss) of Affiliates
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1 | - | - | 2 | (1 | ) | - | ||||||||||||||
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Segment Income
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$ | 1,455 | $ | 1,790 | -18.7 | % | $ | 6,271 | $ | 7,242 | -13.4 | % | |||||||||
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Segment Operating Income Margin
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9.9 | % | 12.0 | % | 10.7 | % | 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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$ | 10 | $ | 13 | -23.1 | % | $ | 39 | $ | 49 | -20.4 | % | |||||||||
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Segment Operating Expenses
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756 | 332 | - | 1,336 | 1,065 | 25.4 | % | ||||||||||||||
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Segment Operating Income (Loss)
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(746 | ) | (319 | ) | - | (1,297 | ) | (1,016 | ) | -27.7 | % | ||||||||||
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Equity in Net Income of Affiliates
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167 | 232 | -28.0 | % | 715 | 815 | -12.3 | % | |||||||||||||
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Segment Income (Loss)
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$ | (579 | ) | $ | (87 | ) | - | $ | (582 | ) | $ | (201 | ) | - | |||||||
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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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December 31,
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2013
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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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$ | 3,339 | $ | 4,868 | ||
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Accounts receivable - net of allowances for doubtful accounts of $483 and $547
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12,918 | 12,657 | ||||
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Prepaid expenses
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960 | 1,035 | ||||
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Deferred income taxes
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1,199 | 1,036 | ||||
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Other current assets
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4,780 | 3,110 | ||||
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Total current assets
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23,196 | 22,706 | ||||
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Property, Plant and Equipment - Net
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110,968 | 109,767 | ||||
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Goodwill
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69,273 | 69,773 | ||||
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Licenses
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56,433 | 52,352 | ||||
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Customer Lists and Relationships - Net
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763 | 1,391 | ||||
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Other Intangible Assets - Net
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5,016 | 5,032 | ||||
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Investments in and Advances to Equity Affiliates
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3,860 | 4,581 | ||||
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Other Assets
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8,278 | 6,713 | ||||
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Total Assets
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$ | 277,787 | $ | 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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$ | 5,498 | $ | 3,486 | ||
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Accounts payable and accrued liabilities
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21,107 | 20,494 | ||||
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Advanced billing and customer deposits
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4,212 | 4,225 | ||||
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Accrued taxes
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1,774 | 1,026 | ||||
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Dividends payable
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2,404 | 2,556 | ||||
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Total current liabilities
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34,995 | 31,787 | ||||
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Long-Term Debt
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69,290 | 66,358 | ||||
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Deferred Credits and Other Noncurrent Liabilities
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Deferred income taxes
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36,308 | 28,491 | ||||
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Postemployment benefit obligation
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29,946 | 41,392 | ||||
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Other noncurrent liabilities
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15,766 | 11,592 | ||||
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Total deferred credits and other noncurrent liabilities
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82,020 | 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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91,091 | 91,038 | ||||
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Retained earnings
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31,141 | 22,481 | ||||
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Treasury stock
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(45,619 | ) | (32,888 | ) | ||
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Accumulated other comprehensive income
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7,880 | 5,236 | ||||
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Noncontrolling interest
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494 | 333 | ||||
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Total stockholders' equity
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91,482 | 92,695 | ||||
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Total Liabilities and Stockholders' Equity
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$ | 277,787 | $ | 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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Twelve Months Ended December 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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$ | 18,553 | $ | 7,539 | ||
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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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18,395 | 18,143 | ||||
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Undistributed earnings from investments in equity affiliates
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(324 | ) | (615 | ) | ||
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Provision for uncollectible accounts
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954 | 1,117 | ||||
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Deferred income tax expense
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6,242 | 1,747 | ||||
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Net (gain) loss from sale of investments, net of impairments
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(492 | ) | (19 | ) | ||
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Actuarial (gain) loss on pension and postretirement benefits
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(7,584 | ) | 9,994 | |||
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Changes in operating assets and liabilities:
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Accounts receivable
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(1,329 | ) | (1,365 | ) | ||
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Other current assets
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412 | 1,017 | ||||
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Accounts payable and accrued liabilities
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(152 | ) | 1,798 | |||
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Retirement benefit funding
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(209 | ) | - | |||
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Other - net
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330 | (180 | ) | |||
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Total adjustments
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16,243 | 31,637 | ||||
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Net Cash Provided by Operating Activities
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34,796 | 39,176 | ||||
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Investing Activities
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Construction and capital expenditures:
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Capital expenditures
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(20,944 | ) | (19,465 | ) | ||
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Interest during construction
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(284 | ) | (263 | ) | ||
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Acquisitions, net of cash acquired
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(4,113 | ) | (828 | ) | ||
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Dispositions
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1,923 | 812 | ||||
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Sales (purchases) of securities, net
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- | 65 | ||||
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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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(7 | ) | (1 | ) | ||
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Net Cash Used in Investing Activities
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(23,124 | ) | (19,680 | ) | ||
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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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20 | 1 | ||||
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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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12,040 | 13,486 | ||||
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Repayment of long-term debt
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(7,698 | ) | (8,733 | ) | ||
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Issuance of other long-term financing obligations
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4,796 | - | ||||
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Purchase of treasury stock
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(13,028 | ) | (12,752 | ) | ||
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Issuance of treasury stock
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114 | 477 | ||||
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Dividends paid
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(9,696 | ) | (10,241 | ) | ||
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Other
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251 | 89 | ||||
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Net Cash Used in Financing Activities
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(13,201 | ) | (17,673 | ) | ||
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Net (decrease) increase in cash and cash equivalents
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(1,529 | ) | 1,823 | |||
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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 Year
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$ | 3,339 | $ | 4,868 | ||
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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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Twelve Months Ended
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12/31/2013
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12/31/2012
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% Chg
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12/31/2013
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12/31/2012
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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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110,376 | 106,957 | 3.2 | % | |||||||||||||||||||||
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Postpaid
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72,638 | 70,497 | 3.0 | % | |||||||||||||||||||||
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Prepaid
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7,384 | 7,328 | 0.8 | % | |||||||||||||||||||||
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Reseller
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14,028 | 14,875 | -5.7 | % | |||||||||||||||||||||
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Connected Devices
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16,326 | 14,257 | 14.5 | % | |||||||||||||||||||||
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Wireless Net Adds
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Total
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809 | 1,094 | -26.1 | % | 2,721 | 3,764 | -27.7 | % | |||||||||||||||||
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Postpaid
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566 | 780 | -27.4 | % | 1,776 | 1,438 | 23.5 | % | |||||||||||||||||
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Prepaid
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(32 | ) | (166 | ) | 80.7 | % | (13 | ) | 128 | - | |||||||||||||||
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Reseller
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(123 | ) | 234 | - | (1,074 | ) | 1,027 | - | |||||||||||||||||
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Connected Devices
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398 | 246 | 61.8 | % | 2,032 | 1,171 | 73.5 | % | |||||||||||||||||
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M&A Activity, Partitioned Customers and Other Adjs.
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107 | (8 | ) | - | 698 | (54 | ) | - | |||||||||||||||||
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Wireless Churn
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Postpaid Churn
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1.11 | % | 1.19 | % |
-8 BP
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1.06 | % | 1.09 | % |
-3 BP
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Total Churn
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1.43 | % | 1.42 | % |
1 BP
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1.37 | % | 1.35 | % |
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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28,489 | 32,184 | -11.5 | % | |||||||||||||||||||||
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Net Change
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(807 | ) | (992 | ) | 18.6 | % | (3,695 | ) | (4,148 | ) | 10.9 | % | |||||||||||||
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Broadband
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Total Wireline Broadband Connections
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16,425 | 16,390 | 0.2 | % | |||||||||||||||||||||
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Net Change
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(2 | ) | (2 | ) | - | 35 | (37 | ) | - | ||||||||||||||||
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Video
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Total U-verse Video Connections
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5,460 | 4,536 | 20.4 | % | |||||||||||||||||||||
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Net Change
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194 | 192 | 1.0 | % | 924 | 745 | 24.0 | % | |||||||||||||||||
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Consumer Revenue Connections
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Broadband2
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14,697 | 14,531 | 1.1 | % | |||||||||||||||||||||
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U-verse Video Connections1
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5,442 | 4,524 | 20.3 | % | |||||||||||||||||||||
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Voice1,3
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16,251 | 18,612 | -12.7 | % | |||||||||||||||||||||
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Total Consumer Revenue Connections1
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36,390 | 37,667 | -3.4 | % | |||||||||||||||||||||
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Net Change
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(273 | ) | (386 | ) | 29.3 | % | (1,277 | ) | (1,839 | ) | 30.6 | % | |||||||||||||
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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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$ | 5,379 | $ | 5,846 | -8.0 | % | $ | 20,944 | $ | 19,465 | 7.6 | % | |||||||||||||
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Interest during construction
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$ | 71 | $ | 66 | 7.6 | % | $ | 284 | $ | 263 | 8.0 | % | |||||||||||||
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Dividends Declared per Share
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$ | 0.46 | $ | 0.45 | 2.2 | % | $ | 1.81 | $ | 1.77 | 2.3 | % | |||||||||||||
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End of Period Common Shares Outstanding (000,000)
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5,226 | 5,581 | -6.4 | % | |||||||||||||||||||||
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Debt Ratio4
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45.0 | % | 43.0 | % |
200 BP
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Total Employees
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243,360 | 241,810 | 0.6 | % | |||||||||||||||||||||
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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 3,848 as of December 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 4Q13, total switched access lines were 24,639, retail business switched access lines totaled 10,364, and wholesale,
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national mass markets and coin switched access lines totaled 1,872. Restated switched access lines do not include ISDN lines.
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