Attached files
| file | filename |
|---|---|
| 8-K - AT&T INC. 3RD QTR 2014 EARNINGS RELEASE - AT&T INC. | q3earning8k.htm |
| EX-99.1 - PRESS RELEASE - AT&T INC. | ex99_1.htm |
| EX-99.3 - DISCUSSION OF EBITA AND FREE CASH FLOW - AT&T INC. | ex99_3.htm |
|
Financial Data
|
||||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||
|
Consolidated Statements of Income
|
||||||||||||||||||||||||
|
Dollars in millions except per share amounts
|
||||||||||||||||||||||||
|
Unaudited
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||||||||
|
9/30/2014
|
9/30/2013
|
% Chg
|
9/30/2014
|
9/30/2013
|
% Chg
|
|||||||||||||||||||
|
Operating Revenues
|
$
|
32,957
|
$
|
32,158
|
2.5
|
%
|
$
|
98,008
|
$
|
95,589
|
2.5
|
%
|
||||||||||||
|
Operating Expenses
|
||||||||||||||||||||||||
|
Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
|
14,541
|
13,403
|
8.5
|
%
|
42,074
|
39,227
|
7.3
|
%
|
||||||||||||||||
|
Selling, general and administrative
|
8,475
|
7,952
|
6.6
|
%
|
24,932
|
24,406
|
2.2
|
%
|
||||||||||||||||
|
Depreciation and amortization
|
4,539
|
4,615
|
-1.6
|
%
|
13,706
|
13,715
|
-0.1
|
%
|
||||||||||||||||
|
Total Operating Expenses
|
27,555
|
25,970
|
6.1
|
%
|
80,712
|
77,348
|
4.3
|
%
|
||||||||||||||||
|
Operating Income
|
5,402
|
6,188
|
-12.7
|
%
|
17,296
|
18,241
|
-5.2
|
%
|
||||||||||||||||
|
Interest Expense
|
1,016
|
829
|
22.6
|
%
|
2,757
|
2,481
|
11.1
|
%
|
||||||||||||||||
|
Equity in Net Income (Loss) of Affiliates
|
(2
|
)
|
91
|
-
|
188
|
494
|
-61.9
|
%
|
||||||||||||||||
|
Other Income (Expense) - Net
|
42
|
50
|
-16.0
|
%
|
1,456
|
370
|
-
|
|||||||||||||||||
|
Income Before Income Taxes
|
4,426
|
5,500
|
-19.5
|
%
|
16,183
|
16,624
|
-2.7
|
%
|
||||||||||||||||
|
Income Tax Expense
|
1,367
|
1,595
|
-14.3
|
%
|
5,769
|
5,066
|
13.9
|
%
|
||||||||||||||||
|
Net Income
|
3,059
|
3,905
|
-21.7
|
%
|
10,414
|
11,558
|
-9.9
|
%
|
||||||||||||||||
|
Less: Net Income Attributable to Noncontrolling Interest
|
(57
|
)
|
(91
|
)
|
37.4
|
%
|
(213
|
)
|
(222
|
)
|
4.1
|
%
|
||||||||||||
|
Net Income Attributable to AT&T
|
$
|
3,002
|
$
|
3,814
|
-21.3
|
%
|
$
|
10,201
|
$
|
11,336
|
-10.0
|
%
|
||||||||||||
|
Basic Earnings Per Share Attributable to AT&T
|
$
|
0.58
|
$
|
0.72
|
-19.4
|
%
|
$
|
1.96
|
$
|
2.10
|
-6.7
|
%
|
||||||||||||
|
Weighted Average Common
Shares Outstanding (000,000)
|
5,198
|
5,315
|
-2.2
|
%
|
5,208
|
5,402
|
-3.6
|
%
|
||||||||||||||||
|
Diluted Earnings Per Share Attributable to AT&T
|
$
|
0.58
|
$
|
0.72
|
-19.4
|
%
|
$
|
1.95
|
$
|
2.09
|
-6.7
|
%
|
||||||||||||
|
Weighted Average Common
Shares Outstanding with Dilution (000,000)
|
5,214
|
5,331
|
-2.2
|
%
|
5,224
|
5,419
|
-3.6
|
%
|
||||||||||||||||
|
Financial Data
|
||||||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||||
|
Statements of Segment Income
|
||||||||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||||
|
Wireless
|
9/30/2014
|
9/30/2013
|
% Chg
|
9/30/2014
|
9/30/2013
|
% Chg
|
||||||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||||||||
|
Service
|
$
|
15,423
|
|
$
|
15,460
|
-0.2
|
%
|
$
|
45,958
|
|
$
|
45,892
|
0.1
|
%
|
||||||||||||
|
Equipment
|
2,914
|
2,020
|
44.3
|
%
|
8,175
|
5,570
|
46.8
|
%
|
||||||||||||||||||
|
Total Segment Operating Revenues
|
18,337
|
17,480
|
4.9
|
%
|
54,133
|
51,462
|
5.2
|
%
|
||||||||||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||||||||
|
Operations and support
|
11,855
|
10,982
|
7.9
|
%
|
34,305
|
31,932
|
7.4
|
%
|
||||||||||||||||||
|
Depreciation and amortization
|
1,965
|
1,875
|
4.8
|
%
|
5,931
|
5,553
|
6.8
|
%
|
||||||||||||||||||
|
Total Segment Operating Expenses
|
13,820
|
12,857
|
7.5
|
%
|
40,236
|
37,485
|
7.3
|
%
|
||||||||||||||||||
|
Segment Operating Income
|
4,517
|
4,623
|
-2.3
|
%
|
13,897
|
13,977
|
-0.6
|
%
|
||||||||||||||||||
|
Equity in Net Income (Loss) of Affiliates
|
(26
|
)
|
(18
|
)
|
-44.4
|
%
|
(75
|
)
|
(55
|
)
|
-36.4
|
%
|
||||||||||||||
|
Segment Income
|
$
|
4,491
|
|
$
|
4,605
|
-2.5
|
%
|
$
|
13,822
|
|
$
|
13,922
|
-0.7
|
%
|
||||||||||||
|
Segment Operating Income Margin
|
24.6
|
% |
|
26.4
|
%
|
25.7
|
% |
|
27.2
|
%
|
||||||||||||||||
|
Wireline
|
||||||||||||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||||||||
|
Service
|
$
|
14,368
|
|
$
|
14,403
|
-0.2
|
%
|
$
|
43,165
|
|
$
|
43,266
|
-0.2
|
%
|
||||||||||||
|
Equipment
|
247
|
267
|
-7.5
|
%
|
688
|
832
|
-17.3
|
%
|
||||||||||||||||||
|
Total Segment Operating Revenues
|
14,615
|
14,670
|
-0.4
|
%
|
43,853
|
44,098
|
-0.6
|
%
|
||||||||||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||||||||
|
Operations and support
|
10,761
|
10,385
|
3.6
|
%
|
31,918
|
31,137
|
2.5
|
%
|
||||||||||||||||||
|
Depreciation and amortization
|
2,571
|
2,736
|
-6.0
|
%
|
7,769
|
8,146
|
-4.6
|
%
|
||||||||||||||||||
|
Total Segment Operating Expenses
|
13,332
|
13,121
|
1.6
|
%
|
39,687
|
39,283
|
1.0
|
%
|
||||||||||||||||||
|
Segment Operating Income
|
1,283
|
1,549
|
-17.2
|
%
|
4,166
|
4,815
|
-13.5
|
%
|
||||||||||||||||||
|
Equity in Net Income of Affiliates
|
1
|
-
|
-
|
2
|
1
|
-
|
||||||||||||||||||||
|
Segment Income
|
$
|
1,284
|
|
$
|
1,549
|
-17.1
|
%
|
$
|
4,168
|
|
$
|
4,816
|
-13.5
|
%
|
||||||||||||
|
Segment Operating Income Margin
|
8.8
|
% |
|
10.6
|
%
|
9.5
|
% |
|
10.9
|
%
|
||||||||||||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
Dollars in millions
|
||||||||
|
9/30/14
|
12/31/13
|
|||||||
|
Unaudited
|
||||||||
|
Assets
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
2,458
|
$
|
3,339
|
||||
|
Accounts receivable - net of allowances for doubtful accounts of $482 and $483
|
13,445
|
12,918
|
||||||
|
Prepaid expenses
|
869
|
960
|
||||||
|
Deferred income taxes
|
1,030
|
1,199
|
||||||
|
Other current assets
|
8,033
|
4,780
|
||||||
|
Total current assets
|
25,835
|
23,196
|
||||||
|
Property, Plant and Equipment - Net
|
115,134
|
110,968
|
||||||
|
Goodwill
|
70,131
|
69,273
|
||||||
|
Licenses
|
60,784
|
56,433
|
||||||
|
Other Intangible Assets - Net
|
6,252
|
5,779
|
||||||
|
Investments in and Advances to Equity Affiliates
|
166
|
3,860
|
||||||
|
Other Assets
|
9,637
|
8,278
|
||||||
|
Total Assets
|
$
|
287,939
|
$
|
277,787
|
||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Current Liabilities
|
||||||||
|
Debt maturing within one year
|
$
|
5,109
|
$
|
5,498
|
||||
|
Accounts payable and accrued liabilities
|
24,119
|
21,107
|
||||||
|
Advanced billing and customer deposits
|
4,038
|
4,212
|
||||||
|
Accrued taxes
|
4,328
|
1,774
|
||||||
|
Dividends payable
|
2,385
|
2,404
|
||||||
|
Total current liabilities
|
39,979
|
34,995
|
||||||
|
Long-Term Debt
|
70,516
|
69,290
|
||||||
|
Deferred Credits and Other Noncurrent Liabilities
|
||||||||
|
Deferred income taxes
|
37,393
|
36,308
|
||||||
|
Postemployment benefit obligation
|
29,918
|
29,946
|
||||||
|
Other noncurrent liabilities
|
17,014
|
15,766
|
||||||
|
Total deferred credits and other noncurrent liabilities
|
84,325
|
82,020
|
||||||
|
Stockholders' Equity
|
||||||||
|
Common stock
|
6,495
|
6,495
|
||||||
|
Additional paid-in capital
|
91,064
|
91,091
|
||||||
|
Retained earnings
|
34,165
|
31,141
|
||||||
|
Treasury stock
|
(47,037
|
)
|
(45,619
|
)
|
||||
|
Accumulated other comprehensive income
|
7,926
|
7,880
|
||||||
|
Noncontrolling interest
|
506
|
494
|
||||||
|
Total stockholders' equity
|
93,119
|
91,482
|
||||||
|
Total Liabilities and Stockholders' Equity
|
$
|
287,939
|
$
|
277,787
|
||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
Nine Months Ended
September 30,
|
|||||||
|
2014
|
2013
|
|||||||
|
Operating Activities
|
||||||||
|
Net income
|
$
|
10,414
|
$
|
11,558
|
||||
|
Adjustments to reconcile net income to
|
||||||||
|
net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
13,706
|
13,715
|
||||||
|
Undistributed earnings from investments in equity affiliates
|
(45
|
)
|
(232
|
)
|
||||
|
Provision for uncollectible accounts
|
692
|
653
|
||||||
|
Deferred income tax expense
|
1,304
|
2,505
|
||||||
|
Net gain from sale of investments, net of impairments
|
(1,374
|
)
|
(272
|
)
|
||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
(1,269
|
)
|
(440
|
)
|
||||
|
Other current assets
|
(813
|
)
|
520
|
|||||
|
Accounts payable and accrued liabilities
|
4,763
|
(420
|
)
|
|||||
|
Retirement benefit funding
|
(420
|
)
|
(175
|
)
|
||||
|
Other - net
|
(1,365
|
)
|
(533
|
)
|
||||
|
Total adjustments
|
15,179
|
15,321
|
||||||
|
Net Cash Provided by Operating Activities
|
25,593
|
26,879
|
||||||
|
Investing Activities
|
||||||||
|
Construction and capital expenditures:
|
||||||||
|
Capital expenditures
|
(16,829
|
)
|
(15,565
|
)
|
||||
|
Interest during construction
|
(178
|
)
|
(213
|
)
|
||||
|
Acquisitions, net of cash acquired
|
(2,053
|
)
|
(4,025
|
)
|
||||
|
Dispositions
|
6,074
|
846
|
||||||
|
Purchases of securities, net
|
(1,996
|
)
|
-
|
|||||
|
Return of advances to and investments in equity affiliates
|
3
|
301
|
||||||
|
Other
|
(1
|
)
|
(4
|
)
|
||||
|
Net Cash Used in Investing Activities
|
(14,980
|
)
|
(18,660
|
)
|
||||
|
Financing Activities
|
||||||||
|
Net change in short-term borrowings with
|
||||||||
|
original maturities of three months or less
|
(16
|
)
|
1,851
|
|||||
|
Issuance of other short-term borrowings
|
-
|
1,476
|
||||||
|
Repayment of other short-term borrowings
|
-
|
(1,476
|
)
|
|||||
|
Issuance of long-term debt
|
8,564
|
6,416
|
||||||
|
Repayment of long-term debt
|
(10,376
|
)
|
(2,131
|
)
|
||||
|
Purchase of treasury stock
|
(1,617
|
)
|
(11,134
|
)
|
||||
|
Issuance of treasury stock
|
34
|
108
|
||||||
|
Dividends paid
|
(7,170
|
)
|
(7,325
|
)
|
||||
|
Other
|
(913
|
)
|
499
|
|||||
|
Net Cash Used in Financing Activities
|
(11,494
|
)
|
(11,716
|
)
|
||||
|
Net decrease in cash and cash equivalents
|
(881
|
)
|
(3,497
|
)
|
||||
|
Cash and cash equivalents beginning of year
|
3,339
|
4,868
|
||||||
|
Cash and Cash Equivalents End of Period
|
$
|
2,458
|
$ |
1,371
|
||||
|
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
|
Nine Months Ended
|
||||||||||||||||||||||
|
9/30/2014
|
9/30/2013
|
% Chg
|
9/30/2014
|
9/30/2013
|
% Chg
|
|||||||||||||||||||
|
Wireless
|
||||||||||||||||||||||||
|
Subscribers and Connections
|
||||||||||||||||||||||||
|
Total
|
118,650
|
109,460
|
8.4
|
%
|
||||||||||||||||||||
|
Postpaid
|
75,105
|
72,032
|
4.3
|
%
|
||||||||||||||||||||
|
Prepaid
|
11,179
|
7,425
|
50.6
|
%
|
||||||||||||||||||||
|
Reseller
|
13,884
|
14,089
|
-1.5
|
%
|
||||||||||||||||||||
|
Connected Devices
|
18,482
|
15,914
|
16.1
|
%
|
||||||||||||||||||||
|
Wireless Net Adds
|
||||||||||||||||||||||||
|
Total
|
2,007
|
989
|
-
|
3,703
|
1,912
|
93.7
|
%
|
|||||||||||||||||
|
Postpaid
|
785
|
363
|
-
|
2,436
|
1,210
|
-
|
||||||||||||||||||
|
Prepaid
|
(140
|
)
|
192
|
-
|
(595
|
)
|
19
|
-
|
||||||||||||||||
|
Reseller
|
87
|
(285
|
)
|
-
|
(281
|
)
|
(951
|
)
|
70.5
|
%
|
||||||||||||||
|
Connected Devices
|
1,275
|
719
|
77.3
|
%
|
2,143
|
1,634
|
31.2
|
%
|
||||||||||||||||
|
M&A Activity, Partitioned Customers and Other Adjs.
|
9
|
587
|
-98.5
|
% |
4,571
|
591
|
-
|
|||||||||||||||||
|
Wireless Churn
|
||||||||||||||||||||||||
|
Postpaid Churn
|
0.99
|
%
|
1.07
|
%
|
-8 BP
|
0.97
|
%
|
1.04
|
%
|
-7 BP
|
||||||||||||||
|
Total Churn
|
1.36
|
%
|
1.31
|
%
|
5 BP
|
1.41
|
%
|
1.35
|
%
|
6 BP
|
||||||||||||||
|
Other
|
||||||||||||||||||||||||
|
Licensed POPs (000,000)
|
321
|
317
|
1.3
|
%
|
||||||||||||||||||||
|
Wireline
|
||||||||||||||||||||||||
|
Voice
|
||||||||||||||||||||||||
|
Total Wireline Voice Connections
|
26,220
|
29,296
|
-10.5
|
%
|
||||||||||||||||||||
|
Net Change
|
(738
|
)
|
(932
|
)
|
20.8
|
%
|
(2,269
|
)
|
(2,888
|
)
|
21.4
|
%
|
||||||||||||
|
Broadband
|
||||||||||||||||||||||||
|
Total Wireline Broadband Connections
|
16,486
|
16,427
|
0.4
|
%
|
||||||||||||||||||||
|
Net Change
|
38
|
(26
|
)
|
-
|
61
|
37
|
64.9
|
%
|
||||||||||||||||
|
Video
|
||||||||||||||||||||||||
|
Total U-verse Video Connections
|
6,067
|
5,266
|
15.2
|
%
|
||||||||||||||||||||
|
Net Change
|
216
|
265
|
-18.5
|
%
|
607
|
730
|
-16.8
|
%
|
||||||||||||||||
|
Consumer Revenue Connections
|
||||||||||||||||||||||||
|
Broadband1
|
14,844
|
14,665
|
1.2
|
%
|
||||||||||||||||||||
|
U-verse Video Connections
|
6,045
|
5,249
|
15.2
|
%
|
||||||||||||||||||||
|
Voice2
|
14,880
|
16,749
|
-11.2
|
%
|
||||||||||||||||||||
|
Total Consumer Revenue Connections1
|
35,769
|
36,663
|
-2.4
|
%
|
||||||||||||||||||||
|
Net Change
|
(156
|
)
|
(345
|
)
|
54.8
|
%
|
(621
|
)
|
(1,004
|
)
|
38.1
|
%
|
||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||
|
Construction and capital expenditures:
|
||||||||||||||||||||||||
|
Capital expenditures
|
$
|
5,180
|
$
|
5,900
|
-12.2
|
%
|
$
|
16,829
|
$
|
15,565
|
8.1
|
%
|
||||||||||||
|
Interest during construction
|
$
|
60
|
$
|
73
|
-17.8
|
%
|
$
|
178
|
$
|
213
|
-16.4
|
%
|
||||||||||||
|
Dividends Declared per Share
|
$
|
0.46
|
$
|
0.45
|
2.2
|
%
|
$
|
1.38
|
$
|
1.35
|
2.2
|
%
|
||||||||||||
|
End of Period Common Shares Outstanding (000,000)
|
5,185
|
5,280
|
-1.8
|
%
|
||||||||||||||||||||
|
Debt Ratio3
|
44.8
|
%
|
46.9
|
%
|
-210 BP
|
|||||||||||||||||||
|
Total Employees
|
247,700
|
246,740
|
0.4
|
%
|
||||||||||||||||||||
|
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 4,698 as of September 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 3Q14, total switched access lines were 21,464; retail business switched access lines totaled 9,509; and wholesale,
|
||
|
national mass markets and coin switched access lines totaled 1,773. Restated switched access lines do not include ISDN lines.
|
||
|
Financial Data
|
||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||
|
Non-GAAP Wireless Reconciliation
|
||||||||||||||||||||
|
Wireless Segment EBITDA
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
9/30/13
|
12/31/13
|
3/31/14
|
6/30/14
|
9/30/14
|
||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||
|
Service
|
$
|
15,460
|
$
|
15,660
|
$
|
15,387
|
$
|
15,148
|
$
|
15,423
|
||||||||||
|
Equipment
|
2,020
|
2,777
|
2,479
|
2,782
|
2,914
|
|||||||||||||||
|
Total Segment Operating Revenues
|
$
|
17,480
|
$
|
18,437
|
$
|
17,866
|
$
|
17,930
|
$
|
18,337
|
||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||
|
Operations and support
|
10,982
|
12,576
|
10,882
|
11,568
|
11,855
|
|||||||||||||||
|
Depreciation and amortization
|
1,875
|
1,915
|
1,931
|
2,035
|
1,965
|
|||||||||||||||
|
Total Segment Operating Expenses
|
12,857
|
14,491
|
12,813
|
13,603
|
13,820
|
|||||||||||||||
|
Segment Operating Income
|
4,623
|
3,946
|
5,053
|
4,327
|
4,517
|
|||||||||||||||
|
Segment Operating Income Margin
|
26.4
|
%
|
21.4
|
%
|
28.3
|
%
|
24.1
|
%
|
24.6
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
1,875
|
1,915
|
1,931
|
2,035
|
1,965
|
|||||||||||||||
|
EBITDA1
|
$
|
6,498
|
$
|
5,861
|
$
|
6,984
|
$
|
6,362
|
$
|
6,482
|
||||||||||
|
EBITDA as a % of Service Revenues2
|
42.0
|
%
|
37.4
|
%
|
45.4
|
%
|
42.0
|
%
|
42.0
|
%
|
||||||||||
|
1EBITDA is defined as Operating Income Before Depreciation and Amortization.
2Service revenues include Wireless data, voice, text and other service revenues.
|
||||||||||||||||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Wireless Reconciliation
|
||||||||
|
Wireless Segment Adjusted EBITDA
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
9/30/13
|
9/30/14
|
|||||||
|
Segment Operating Revenues
|
||||||||
|
Service
|
$
|
15,460
|
$
|
15,423
|
||||
|
Equipment
|
2,020
|
2,914
|
||||||
|
Total Segment Operating Revenues
|
$
|
17,480
|
$
|
18,337
|
||||
|
Segment Operating Income
|
4,623
|
4,517
|
||||||
|
Segment Operating Income Margin
|
26.4
|
%
|
24.6
|
%
|
||||
|
Plus: Depreciation and amortization
|
1,875
|
1,965
|
||||||
|
EBITDA1
|
$
|
6,498
|
$
|
6,482
|
||||
|
Total EBITDA Margin
|
37.2
|
%
|
35.3
|
%
|
||||
|
EBITDA as a % of Service Revenues2
|
42.0
|
%
|
42.0
|
%
|
||||
|
Adjustments:
|
||||||||
|
Wireless integration expense3
|
-
|
171
|
||||||
|
Adjusted EBITDA1
|
$
|
6,498
|
$
|
6,653
|
||||
|
Total Adjusted EBITDA Margin
|
37.2
|
%
|
36.3
|
%
|
||||
|
Adjusted EBITDA as a % of Service Revenues2
|
42.0
|
%
|
43.1
|
%
|
||||
|
1 EBITDA is defined as Operating Income Before Depreciation and Amortization.
2 Service revenues include Wireless data, voice, text and other service revenues.
3 Operations and Support expenses for Leap and Alltel wireless integration costs.
|
||||||
|
Financial Data
|
||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||||||||||
|
Adjusted Diluted EPS
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2013
|
2014
|
2013
|
2014
|
|||||||||||||
|
Reported Diluted EPS
|
$
|
0.72
|
$
|
0.58
|
$
|
2.09
|
$
|
1.95
|
||||||||
|
Adjustments:
|
||||||||||||||||
|
Merger and integration costs1
|
-
|
0.03
|
-
|
0.07
|
||||||||||||
|
Early debt redemption costs
|
-
|
0.02
|
-
|
0.02
|
||||||||||||
|
Tax and spectrum transfer
|
(0.06
|
)
|
-
|
(0.08
|
)
|
-
|
||||||||||
|
América Móvil - Gain on AMX shares sale
|
-
|
-
|
(0.04
|
)
|
(0.08
|
)
|
||||||||||
|
Adjusted Diluted EPS
|
$
|
0.66
|
$
|
0.63
|
$
|
1.97
|
$
|
1.96
|
||||||||
|
Year-over-year growth - Adjusted
|
-4.5
|
%
|
-0.5
|
%
|
||||||||||||
|
Weighted Average Common Shares Outstanding
|
||||||||||||||||
|
with Dilution (000,000)
|
5,331
|
5,214
|
5,419
|
5,224
|
||||||||||||
|
1 Includes Leap and Alltel wireless integration costs and DIRECTV merger costs.
|
||||||||||||||||
|
Adjusted Diluted EPS is a non-GAAP financial measure calculated by excluding from operating revenues, operating expenses and equity in net income of affiliates certain significant items that are non-operational or non-recurring in nature, including dispositions. Management believes that this measure provides relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Diluted EPS should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculation of Adjusted Diluted EPS, as presented, may differ from similarly titled measures reported by other companies.
|
||||||||||||||||
|
Financial Data
|
||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||||||||||
|
Free Cash Flow
|
||||||||||||||||
|
Dollars in millions
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
| September 30, |
September 30,
|
|||||||||||||||
|
2013
|
2014
|
2013
|
2014
|
|||||||||||||
|
Net cash provided by operating activities
|
$
|
9,168
|
$
|
8,724
|
$
|
26,879
|
$
|
25,593
|
||||||||
|
Less: Construction and capital expenditures
|
(5,973
|
)
|
(5,240
|
)
|
(15,778
|
)
|
(17,007
|
)
|
||||||||
|
Free Cash Flow
|
$
|
3,195
|
$
|
3,484
|
$
|
11,101
|
$
|
8,586
|
||||||||
|
Free Cash Flow after Dividends
|
||||||||||||||||
|
Dollars in millions
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2013
|
2014
|
2013
|
2014
|
|||||||||||||
|
Net cash provided by operating activities
|
$
|
9,168
|
$
|
8,724
|
$
|
26,879
|
$
|
25,593
|
||||||||
|
Less: Construction and capital expenditures
|
(5,973
|
)
|
(5,240
|
)
|
(15,778
|
)
|
(17,007
|
)
|
||||||||
|
Free Cash Flow
|
3,195
|
3,484
|
11,101
|
8,586
|
||||||||||||
|
Less: Dividends paid
|
(2,395
|
)
|
(2,386
|
)
|
(7,325
|
)
|
(7,170
|
)
|
||||||||
|
Free Cash Flow after Dividends
|
$
|
800
|
$
|
1,098
|
$
|
3,776
|
$
|
1,416
|
||||||||
|
Free cash flow includes reimbursements of certain postretirement benefits paid.
Free cash flow is defined as cash from operations minus construction and capital expenditures. Free cash flow after dividends is defined as cash from operations minus construction, capital expenditures and dividends. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views free cash flow as a measure of cash available to pay debt and return cash to shareowners.
|
||||||||||||||||
|
Financial Data
|
||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||||||||||
|
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
||||||||||||||||
|
Dollars in millions
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
Three Months Ended
|
||||||||||||||||
|
3/31/14
|
6/30/14
|
9/30/14
|
2014 YTD
|
|||||||||||||
|
Operating Revenues
|
$
|
32,476
|
$
|
32,575
|
$
|
32,957
|
$
|
98,008
|
||||||||
|
Operating Expenses
|
26,198
|
26,959
|
27,555
|
80,712
|
||||||||||||
|
Total Operating Income
|
6,278
|
5,616
|
5,402
|
17,296
|
||||||||||||
|
Add back Depreciation and Amortization
|
4,617
|
4,550
|
4,539
|
13,706
|
||||||||||||
|
Consolidated Reported EBITDA
|
10,895
|
10,166
|
9,941
|
31,002
|
||||||||||||
|
Add Back:
|
||||||||||||||||
|
Merger and wireless integration costs1
|
81
|
97
|
213
|
391
|
||||||||||||
|
Total Consolidated Adjusted EBITDA
|
10,976
|
10,263
|
10,154
|
31,393
|
||||||||||||
|
Annualized Consolidated Adjusted EBITDA
|
$
|
41,857
|
||||||||||||||
|
End-of-period current debt
|
5,109
|
|||||||||||||||
|
End-of-period long-term debt
|
70,516
|
|||||||||||||||
|
Total End-of-Period Debt
|
75,625
|
|||||||||||||||
|
Less Cash and Cash Equivalents
|
2,458
|
|||||||||||||||
|
Less Bank Securities - Certificates of Deposit & Time Deposits2
|
1,890
|
|||||||||||||||
|
Net Debt Balance
|
$
|
71,277
|
||||||||||||||
|
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
1.70
|
|||||||||||||||
|
1 Adjustments include Operations and Support expenses for Leap and Alltel wireless integration costs and DIRECTV merger costs.
2 Bank Securities are included in "Other current assets" on the Consolidated Balance Sheets.
Net-Debt-to-EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies. Management believes these measures provide relevant and useful information to investors and other users of our financial data. Net debt is calculated by subtracting cash and cash equivalents from the sum of debt maturing within one year and long-term debt. The Net-Debt-to-EBITDA ratio is calculated by dividing the Net Debt by annualized EBITDA. Annualized EBITDA is calculated by annualizing the year-to-date EBITDA.
Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies.
|
||||||||||||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||
|
Adjusted Operating Income Margin
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
September 30,
|
||||||||
|
2013
|
2014
|
|||||||
|
Reported Operating Income
|
$
|
6,188
|
$
|
5,402
|
||||
|
Reported Operating Income Margin
|
19.2
|
%
|
16.4
|
%
|
||||
|
Adjustments:
|
||||||||
|
Merger and integration costs1
|
-
|
(255
|
)
|
|||||
|
Spectrum transfer
|
229
|
-
|
||||||
|
Adjusted Operating Income
|
$
|
5,959
|
$
|
5,657
|
||||
|
Adjusted Operating Income Margin
|
18.5
|
%
|
17.2
|
%
|
||||
|
1 Includes Leap and Alltel wireless integration costs and DIRECTV merger costs.
|
||||||
|
Adjusted Operating Income and Adjusted Operating Income Margin are non-GAAP financial measures calculated by excluding from operating revenues and operating expenses certain significant items that are non-operational or non-recurring in nature, including dispositions. Management believes that these measures provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends.
Adjusted Operating Income and Adjusted Operating Income Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP. Our calculations of Adjusted Operating Revenues may differ from similarly titled measures reported by other companies.
|
||||||