Attached files
| file | filename |
|---|---|
| 8-K - AT&T INC. 2ND QTR 2014 EARNINGS RELEASE 8-K - AT&T INC. | q2earnings801_8k.htm |
|
Financial Data
|
||||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||
|
Consolidated Statements of Income
|
||||||||||||||||||||||||
|
Dollars in millions except per share amounts
|
||||||||||||||||||||||||
|
Unaudited
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
6/30/2014
|
6/30/2013
|
% Chg
|
6/30/2014
|
6/30/2013
|
% Chg
|
|||||||||||||||||||
|
Operating Revenues
|
$ | 32,575 | $ | 32,075 | 1.6 | % | $ | 65,051 | $ | 63,431 | 2.6 | % | ||||||||||||
|
Operating Expenses
|
||||||||||||||||||||||||
|
Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
|
14,212 | 13,270 | 7.1 | % | 27,533 | 25,824 | 6.6 | % | ||||||||||||||||
|
Selling, general and administrative
|
8,197 | 8,121 | 0.9 | % | 16,457 | 16,454 | - | |||||||||||||||||
|
Depreciation and amortization
|
4,550 | 4,571 | -0.5 | % | 9,167 | 9,100 | 0.7 | % | ||||||||||||||||
|
Total Operating Expenses
|
26,959 | 25,962 | 3.8 | % | 53,157 | 51,378 | 3.5 | % | ||||||||||||||||
|
Operating Income
|
5,616 | 6,113 | -8.1 | % | 11,894 | 12,053 | -1.3 | % | ||||||||||||||||
|
Interest Expense
|
881 | 825 | 6.8 | % | 1,741 | 1,652 | 5.4 | % | ||||||||||||||||
|
Equity in Net Income of Affiliates
|
102 | 218 | -53.2 | % | 190 | 403 | -52.9 | % | ||||||||||||||||
|
Other Income (Expense) - Net
|
1,269 | 288 | - | 1,414 | 320 | - | ||||||||||||||||||
|
Income Before Income Taxes
|
6,106 | 5,794 | 5.4 | % | 11,757 | 11,124 | 5.7 | % | ||||||||||||||||
|
Income Tax Expense
|
2,485 | 1,914 | 29.8 | % | 4,402 | 3,471 | 26.8 | % | ||||||||||||||||
|
Net Income
|
3,621 | 3,880 | -6.7 | % | 7,355 | 7,653 | -3.9 | % | ||||||||||||||||
|
Less: Net Income Attributable to Noncontrolling Interest
|
(74 | ) | (58 | ) | -27.6 | % | (156 | ) | (131 | ) | -19.1 | % | ||||||||||||
|
Net Income Attributable to AT&T
|
$ | 3,547 | $ | 3,822 | -7.2 | % | $ | 7,199 | $ | 7,522 | -4.3 | % | ||||||||||||
|
Basic Earnings Per Share Attributable to AT&T
|
$ | 0.68 | $ | 0.71 | -4.2 | % | $ | 1.38 | $ | 1.38 | - | |||||||||||||
|
Weighted Average Common
Shares Outstanding (000,000)
|
5,204 | 5,381 | -3.3 | % | 5,213 | 5,446 | -4.3 | % | ||||||||||||||||
|
Diluted Earnings Per Share Attributable to AT&T
|
$ | 0.68 | $ | 0.71 | -4.2 | % | $ | 1.38 | $ | 1.38 | - | |||||||||||||
|
Weighted Average Common
Shares Outstanding with Dilution (000,000)
|
5,220 | 5,397 | -3.3 | % | 5,229 | 5,463 | -4.3 | % | ||||||||||||||||
|
Financial Data
|
||||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||
|
Statements of Segment Income
|
||||||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
|
Wireless
|
6/30/2014
|
6/30/2013
|
% Chg
|
6/30/2014
|
6/30/2013
|
% Chg
|
||||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||||||
|
Service
|
$ | 15,148 | $ | 15,370 | -1.4 | % | $ | 30,535 | $ | 30,432 | 0.3 | % | ||||||||||||
|
Equipment
|
2,782 | 1,921 | 44.8 | % | 5,261 | 3,550 | 48.2 | % | ||||||||||||||||
|
Total Segment Operating Revenues
|
17,930 | 17,291 | 3.7 | % | 35,796 | 33,982 | 5.3 | % | ||||||||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||||||
|
Operations and support
|
11,568 | 10,770 | 7.4 | % | 22,450 | 20,950 | 7.2 | % | ||||||||||||||||
|
Depreciation and amortization
|
2,035 | 1,843 | 10.4 | % | 3,966 | 3,678 | 7.8 | % | ||||||||||||||||
|
Total Segment Operating Expenses
|
13,603 | 12,613 | 7.8 | % | 26,416 | 24,628 | 7.3 | % | ||||||||||||||||
|
Segment Operating Income
|
4,327 | 4,678 | -7.5 | % | 9,380 | 9,354 | 0.3 | % | ||||||||||||||||
|
Equity in Net Income (Loss) of Affiliates
|
(29 | ) | (19 | ) | -52.6 | % | (49 | ) | (37 | ) | -32.4 | % | ||||||||||||
|
Segment Income
|
$ | 4,298 | $ | 4,659 | -7.7 | % | $ | 9,331 | $ | 9,317 | 0.2 | % | ||||||||||||
|
Segment Operating Income Margin
|
24.1 | % | 27.1 | % | 26.2 | % | 27.5 | % | ||||||||||||||||
|
Wireline
|
||||||||||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||||||
|
Service
|
$ | 14,408 | $ | 14,482 | -0.5 | % | $ | 28,797 | $ | 28,863 | -0.2 | % | ||||||||||||
|
Equipment
|
229 | 291 | -21.3 | % | 441 | 565 | -21.9 | % | ||||||||||||||||
|
Total Segment Operating Revenues
|
14,637 | 14,773 | -0.9 | % | 29,238 | 29,428 | -0.6 | % | ||||||||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||||||
|
Operations and support
|
10,700 | 10,417 | 2.7 | % | 21,157 | 20,752 | 2.0 | % | ||||||||||||||||
|
Depreciation and amortization
|
2,514 | 2,722 | -7.6 | % | 5,198 | 5,410 | -3.9 | % | ||||||||||||||||
|
Total Segment Operating Expenses
|
13,214 | 13,139 | 0.6 | % | 26,355 | 26,162 | 0.7 | % | ||||||||||||||||
|
Segment Operating Income
|
1,423 | 1,634 | -12.9 | % | 2,883 | 3,266 | -11.7 | % | ||||||||||||||||
|
Equity in Net Income of Affiliates
|
- | - | - | 1 | 1 | - | ||||||||||||||||||
|
Segment Income
|
$ | 1,423 | $ | 1,634 | -12.9 | % | $ | 2,884 | $ | 3,267 | -11.7 | % | ||||||||||||
|
Segment Operating Income Margin
|
9.7 | % | 11.1 | % | 9.9 | % | 11.1 | % | ||||||||||||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
Dollars in millions
|
||||||||
|
6/30/14
|
12/31/13
|
|||||||
|
Unaudited
|
||||||||
|
Assets
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$ | 11,305 | $ | 3,339 | ||||
|
Accounts receivable - net of allowances for doubtful accounts of $461 and $483
|
13,001 | 12,918 | ||||||
|
Prepaid expenses
|
928 | 960 | ||||||
|
Deferred income taxes
|
1,180 | 1,199 | ||||||
|
Other current assets
|
6,698 | 4,780 | ||||||
|
Total current assets
|
33,112 | 23,196 | ||||||
|
Property, Plant and Equipment - Net
|
114,360 | 110,968 | ||||||
|
Goodwill
|
70,094 | 69,273 | ||||||
|
Licenses
|
59,655 | 56,433 | ||||||
|
Other Intangible Assets - Net
|
6,380 | 5,779 | ||||||
|
Investments in Equity Affiliates
|
159 | 3,860 | ||||||
|
Other Assets
|
9,706 | 8,278 | ||||||
|
Total Assets
|
$ | 293,466 | $ | 277,787 | ||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Current Liabilities
|
||||||||
|
Debt maturing within one year
|
$ | 10,482 | $ | 5,498 | ||||
|
Accounts payable and accrued liabilities
|
22,966 | 21,107 | ||||||
|
Advanced billing and customer deposits
|
3,990 | 4,212 | ||||||
|
Accrued taxes
|
3,962 | 1,774 | ||||||
|
Dividends payable
|
2,388 | 2,404 | ||||||
|
Total current liabilities
|
43,788 | 34,995 | ||||||
|
Long-Term Debt
|
73,570 | 69,290 | ||||||
|
Deferred Credits and Other Noncurrent Liabilities
|
||||||||
|
Deferred income taxes
|
36,835 | 36,308 | ||||||
|
Postemployment benefit obligation
|
30,070 | 29,946 | ||||||
|
Other noncurrent liabilities
|
16,578 | 15,766 | ||||||
|
Total deferred credits and other noncurrent liabilities
|
83,483 | 82,020 | ||||||
|
Stockholders' Equity
|
||||||||
|
Common stock
|
6,495 | 6,495 | ||||||
|
Additional paid-in capital
|
91,057 | 91,091 | ||||||
|
Retained earnings
|
33,554 | 31,141 | ||||||
|
Treasury stock
|
(46,825 | ) | (45,619 | ) | ||||
|
Accumulated other comprehensive income
|
7,851 | 7,880 | ||||||
|
Noncontrolling interest
|
493 | 494 | ||||||
|
Total stockholders' equity
|
92,625 | 91,482 | ||||||
|
Total Liabilities and Stockholders' Equity
|
$ | 293,466 | $ | 277,787 | ||||
|
Financial Data
|
||||||||
|
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
Six months ended June 30,
|
|||||||
|
2014
|
2013
|
|||||||
|
Operating Activities
|
||||||||
|
Net income
|
$ | 7,355 | $ | 7,653 | ||||
|
Adjustments to reconcile net income to
|
||||||||
|
net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
9,167 | 9,100 | ||||||
|
Undistributed earnings from investments in equity affiliates
|
(58 | ) | (198 | ) | ||||
|
Provision for uncollectible accounts
|
444 | 439 | ||||||
|
Deferred income tax expense
|
546 | 1,081 | ||||||
|
Net gain from sale of investments, net of impairments
|
(1,365 | ) | (260 | ) | ||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
(566 | ) | (290 | ) | ||||
|
Other current assets
|
(771 | ) | 784 | |||||
|
Accounts payable and accrued liabilities
|
2,894 | (340 | ) | |||||
|
Retirement benefit funding
|
(280 | ) | - | |||||
|
Other - net
|
(497 | ) | (258 | ) | ||||
|
Total adjustments
|
9,514 | 10,058 | ||||||
|
Net Cash Provided by Operating Activities
|
16,869 | 17,711 | ||||||
|
Investing Activities
|
||||||||
|
Construction and capital expenditures:
|
||||||||
|
Capital expenditures
|
(11,649 | ) | (9,665 | ) | ||||
|
Interest during construction
|
(118 | ) | (140 | ) | ||||
|
Acquisitions, net of cash acquired
|
(857 | ) | (1,182 | ) | ||||
|
Dispositions
|
4,921 | 825 | ||||||
|
Return of advances to and investments in equity affiliates
|
2 | 301 | ||||||
|
Other
|
- | (4 | ) | |||||
|
Net Cash Used in Investing Activities
|
(7,701 | ) | (9,865 | ) | ||||
|
Financing Activities
|
||||||||
|
Net change in short-term borrowings with
|
||||||||
|
original maturities of three months or less
|
134 | - | ||||||
|
Issuance of other short-term borrowings
|
- | 1,476 | ||||||
|
Repayment of other short-term borrowings
|
- | (233 | ) | |||||
|
Issuance of long-term debt
|
8,564 | 6,416 | ||||||
|
Repayment of long-term debt
|
(3,508 | ) | (1,823 | ) | ||||
|
Purchase of treasury stock
|
(1,396 | ) | (9,217 | ) | ||||
|
Issuance of treasury stock
|
27 | 104 | ||||||
|
Dividends paid
|
(4,784 | ) | (4,930 | ) | ||||
|
Other
|
(239 | ) | 41 | |||||
|
Net Cash Used in Financing Activities
|
(1,202 | ) | (8,166 | ) | ||||
|
Net increase (decrease) in cash and cash equivalents
|
7,966 | (320 | ) | |||||
|
Cash and cash equivalents beginning of year
|
3,339 | 4,868 | ||||||
|
Cash and Cash Equivalents End of Period
|
$ | 11,305 | $ | 4,548 | ||||
|
Financial Data
|
|
|
||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||
|
Supplementary Operating and Financial Data
|
||||||||||||||||||||||||
|
Dollars in millions except per share amounts, subscribers and connections in (000s)
|
||||||||||||||||||||||||
|
Unaudited
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
6/30/2014
|
6/30/2013
|
% Chg
|
6/30/2014
|
6/30/2013
|
% Chg
|
|||||||||||||||||||
|
Wireless
|
||||||||||||||||||||||||
|
Subscribers and Connections
|
||||||||||||||||||||||||
|
Total
|
116,634 | 107,884 | 8.1 | % | ||||||||||||||||||||
|
Postpaid
|
74,332 | 71,278 | 4.3 | % | ||||||||||||||||||||
|
Prepaid
|
11,343 | 7,084 | 60.1 | % | ||||||||||||||||||||
|
Reseller
|
13,756 | 14,330 | -4.0 | % | ||||||||||||||||||||
|
Connected Devices
|
17,203 | 15,192 | 13.2 | % | ||||||||||||||||||||
|
Wireless Net Adds
|
||||||||||||||||||||||||
|
Total
|
634 | 632 | 0.3 | % | 1,696 | 923 | 83.7 | % | ||||||||||||||||
|
Postpaid
|
1,026 | 551 | 86.2 | % | 1,651 | 847 | 94.9 | % | ||||||||||||||||
|
Prepaid
|
(405 | ) | 11 | - | (455 | ) | (173 | ) | - | |||||||||||||||
|
Reseller
|
(162 | ) | (414 | ) | 60.9 | % | (368 | ) | (666 | ) | 44.7 | % | ||||||||||||
|
Connected Devices
|
175 | 484 | -63.8 | % | 868 | 915 | -5.1 | % | ||||||||||||||||
|
M&A Activity, Partitioned Customers and Other Adjs.
|
(14 | ) | 1 | - | 4,562 | 4 | - | |||||||||||||||||
|
Wireless Churn
|
||||||||||||||||||||||||
|
Postpaid Churn
|
0.86 | % | 1.02 | % |
-16 BP
|
0.96 | % | 1.03 | % |
-7 BP
|
||||||||||||||
|
Total Churn
|
1.47 | % | 1.36 | % |
11 BP
|
1.43 | % | 1.37 | % |
6 BP
|
||||||||||||||
|
Other
|
||||||||||||||||||||||||
|
Licensed POPs (000,000)
|
321 | 317 | 1.3 | % | ||||||||||||||||||||
|
Wireline
|
||||||||||||||||||||||||
|
Voice
|
||||||||||||||||||||||||
|
Total Wireline Voice Connections
|
26,958 | 30,228 | -10.8 | % | ||||||||||||||||||||
|
Net Change
|
(758 | ) | (935 | ) | 18.9 | % | (1,531 | ) | (1,956 | ) | 21.7 | % | ||||||||||||
|
Broadband
|
||||||||||||||||||||||||
|
Total Wireline Broadband Connections
|
16,448 | 16,453 | - | |||||||||||||||||||||
|
Net Change
|
(55 | ) | (61 | ) | 9.8 | % | 23 | 63 | -63.5 | % | ||||||||||||||
|
Video
|
||||||||||||||||||||||||
|
Total U-verse Video Connections
|
5,851 | 5,001 | 17.0 | % | ||||||||||||||||||||
|
Net Change
|
190 | 233 | -18.5 | % | 391 | 465 | -15.9 | % | ||||||||||||||||
|
Consumer Revenue Connections
|
||||||||||||||||||||||||
|
Broadband1
|
14,780 | 14,660 | 0.8 | % | ||||||||||||||||||||
|
U-verse Video Connections
|
5,831 | 4,986 | 16.9 | % | ||||||||||||||||||||
|
Voice2
|
15,314 | 17,362 | -11.8 | % | ||||||||||||||||||||
|
Total Consumer Revenue Connections1
|
35,925 | 37,008 | -2.9 | % | ||||||||||||||||||||
|
Net Change
|
(299 | ) | (393 | ) | 23.9 | % | (465 | ) | (659 | ) | 29.4 | % | ||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||
|
Construction and capital expenditures:
|
||||||||||||||||||||||||
|
Capital expenditures
|
$ | 5,933 | $ | 5,413 | 9.6 | % | $ | 11,649 | $ | 9,665 | 20.5 | % | ||||||||||||
|
Interest during construction
|
$ | 63 | $ | 74 | -14.9 | % | $ | 118 | $ | 140 | -15.7 | % | ||||||||||||
|
Dividends Declared per Share
|
$ | 0.46 | $ | 0.45 | 2.2 | % | $ | 0.92 | $ | 0.90 | 2.2 | % | ||||||||||||
|
End of Period Common Shares Outstanding (000,000)
|
5,191 | 5,335 | -2.7 | % | ||||||||||||||||||||
|
Debt Ratio3
|
47.6 | % | 46.6 | % |
100 BP
|
|||||||||||||||||||
|
Total Employees
|
248,170 | 245,350 | 1.1 | % | ||||||||||||||||||||
|
1 Consumer wireline broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband.
|
||||||||||||||||||||||||
|
2 Includes consumer U-verse Voice over Internet Protocol connections of 4,379 as of June 30, 2014.
|
||||||||||||||||||||||||
|
3 Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
|
||||||||||||||||||||||||
|
Note: For the end of 2Q14, total switched access lines were 22,547; retail business switched access lines totaled 9,808; and wholesale,
|
||||||||||||||||||||||||
|
national mass markets and coin switched access lines totaled 1,804. Restated switched access lines do not include ISDN lines.
|
||||||||||||||||||||||||