Attached files
|
Financial Data
|
||||||||||||
|
AT&T Inc.
|
||||||||||||
|
Consolidated Statements of Income
|
||||||||||||
|
Dollars in millions except per share amounts
|
||||||||||||
|
Unaudited
|
Three Months Ended
|
|||||||||||
|
3/31/2015
|
3/31/2014
|
% Chg
|
||||||||||
|
Operating Revenues
|
||||||||||||
|
Service
|
$
|
28,962
|
$
|
29,776
|
-2.7
|
%
|
||||||
|
Equipment
|
3,614
|
2,700
|
33.9
|
%
|
||||||||
|
Total Operating Revenues
|
32,576
|
32,476
|
0.3
|
%
|
||||||||
|
Operating Expenses
|
||||||||||||
|
Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
|
14,581
|
13,321
|
9.5
|
%
|
||||||||
|
Selling, general and administrative
|
7,961
|
8,260
|
-3.6
|
%
|
||||||||
|
Depreciation and amortization
|
4,578
|
4,617
|
-0.8
|
%
|
||||||||
|
Total Operating Expenses
|
27,120
|
26,198
|
3.5
|
%
|
||||||||
|
Operating Income
|
5,456
|
6,278
|
-13.1
|
%
|
||||||||
|
Interest Expense
|
899
|
860
|
4.5
|
%
|
||||||||
|
Equity in Net Income of Affiliates
|
-
|
88
|
-
|
|||||||||
|
Other Income (Expense) - Net
|
70
|
145
|
-51.7
|
%
|
||||||||
|
Income Before Income Taxes
|
4,627
|
5,651
|
-18.1
|
%
|
||||||||
|
Income Tax Expense
|
1,351
|
1,917
|
-29.5
|
%
|
||||||||
|
Net Income
|
3,276
|
3,734
|
-12.3
|
%
|
||||||||
|
Less: Net Income Attributable to Noncontrolling Interest
|
(76
|
)
|
(82
|
)
|
7.3
|
%
|
||||||
|
Net Income Attributable to AT&T
|
$
|
3,200
|
$
|
3,652
|
-12.4
|
%
|
||||||
|
Basic Earnings Per Share Attributable to AT&T
|
$
|
0.61
|
$
|
0.70
|
-12.9
|
%
|
||||||
|
Weighted Average Common
Shares Outstanding (000,000)
|
5,203
|
5,222
|
-0.4
|
%
|
||||||||
|
Diluted Earnings Per Share Attributable to AT&T
|
$
|
0.61
|
$
|
0.70
|
-12.9
|
%
|
||||||
|
Weighted Average Common
Shares Outstanding with Dilution (000,000)
|
5,219
|
5,238
|
-0.4
|
%
|
||||||||
|
Financial Data
|
|||||||||||||
|
AT&T Inc.
|
|||||||||||||
|
Statements of Segment Income
|
|||||||||||||
|
Dollars in millions
|
|||||||||||||
|
Unaudited
|
|||||||||||||
|
Three Months Ended
|
|||||||||||||
|
Wireless
|
3/31/2015
|
3/31/2014
|
% Chg
|
||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Service
|
$
|
14,812
|
$
|
15,387
|
-3.7
|
%
|
|||||||
|
Equipment
|
3,374
|
2,479
|
36.1
|
%
|
|||||||||
|
Total Segment Operating Revenues
|
18,186
|
17,866
|
1.8
|
%
|
|||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and support
|
11,681
|
10,882
|
7.3
|
%
|
|||||||||
|
Depreciation and amortization
|
2,058
|
1,931
|
6.6
|
%
|
|||||||||
|
Total Segment Operating Expenses
|
13,739
|
12,813
|
7.2
|
%
|
|||||||||
|
Segment Operating Income
|
4,447
|
5,053
|
-12.0
|
%
|
|||||||||
|
Equity in Net Income (Loss) of Affiliates
|
(4
|
)
|
(20
|
)
|
80.0
|
%
|
|||||||
|
Segment Income
|
$
|
4,443
|
$
|
5,033
|
-11.7
|
%
|
|||||||
|
Segment Operating Income Margin
|
24.5
|
% |
28.3
|
%
|
|||||||||
|
Wireline
|
|||||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Service
|
$
|
13,935
|
$
|
14,389
|
-3.2
|
%
|
|||||||
|
Equipment
|
213
|
212
|
0.5
|
%
|
|||||||||
|
Total Segment Operating Revenues
|
14,148
|
14,601
|
-3.1
|
%
|
|||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and support
|
10,263
|
10,457
|
-1.9
|
%
|
|||||||||
|
Depreciation and amortization
|
2,476
|
2,684
|
-7.7
|
%
|
|||||||||
|
Total Segment Operating Expenses
|
12,739
|
13,141
|
-3.1
|
%
|
|||||||||
|
Segment Operating Income
|
1,409
|
1,460
|
-3.5
|
%
|
|||||||||
|
Equity in Net Income (Loss) of Affiliates
|
(7
|
)
|
1
|
-
|
|||||||||
|
Segment Income
|
$
|
1,402
|
$
|
1,461
|
-4.0
|
%
|
|||||||
|
Segment Operating Income Margin
|
10.0
|
% |
10.0
|
%
|
|||||||||
|
International
|
|||||||||||||
|
Segment Operating Revenues
|
|||||||||||||
|
Service
|
$
|
215
|
-
|
||||||||||
|
Equipment
|
21
|
-
|
|||||||||||
|
Total Segment Operating Revenues
|
236
|
-
|
|||||||||||
|
-
|
|||||||||||||
|
Segment Operating Expenses
|
|||||||||||||
|
Operations and support
|
219
|
-
|
|||||||||||
|
Depreciation and amortization
|
44
|
-
|
|||||||||||
|
Total Segment Operating Expenses
|
263
|
-
|
|||||||||||
|
Segment Operating Income (Loss)
|
(27
|
)
|
-
|
||||||||||
|
Equity in Net Income of Affiliates
|
-
|
-
|
|||||||||||
|
Segment Income (Loss)
|
$
|
(27
|
)
|
-
|
|||||||||
|
Segment Operating Income Margin
|
(11.4
|
)
|
% | ||||||||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Balance Sheets
|
||||||||
|
Dollars in millions
|
||||||||
|
3/31/15
|
12/31/14
|
|||||||
|
Unaudited
|
||||||||
|
Assets
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
4,444
|
$
|
8,603
|
||||
|
Accounts receivable - net of allowances for doubtful accounts of $488 and $454
|
13,592
|
14,527
|
||||||
|
Prepaid expenses
|
930
|
831
|
||||||
|
Deferred income taxes
|
1,538
|
1,142
|
||||||
|
Other current assets
|
6,906
|
6,925
|
||||||
|
Total current assets
|
27,410
|
32,028
|
||||||
|
Property, Plant and Equipment - Net
|
113,198
|
112,898
|
||||||
|
Goodwill
|
70,341
|
69,692
|
||||||
|
Licenses
|
80,560
|
60,824
|
||||||
|
Other Intangible Assets - Net
|
6,423
|
6,139
|
||||||
|
Investments in Equity Affiliates
|
266
|
250
|
||||||
|
Other Assets
|
9,830
|
10,998
|
||||||
|
Total Assets
|
$
|
308,028
|
$
|
292,829
|
||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Current Liabilities
|
||||||||
|
Debt maturing within one year
|
$
|
8,181
|
$
|
6,056
|
||||
|
Accounts payable and accrued liabilities
|
20,418
|
23,592
|
||||||
|
Advanced billing and customer deposits
|
4,221
|
4,105
|
||||||
|
Accrued taxes
|
2,390
|
1,091
|
||||||
|
Dividends payable
|
2,441
|
2,438
|
||||||
|
Total current liabilities
|
37,651
|
37,282
|
||||||
|
Long-Term Debt
|
88,272
|
76,011
|
||||||
|
Deferred Credits and Other Noncurrent Liabilities
|
||||||||
|
Deferred income taxes
|
38,019
|
37,544
|
||||||
|
Postemployment benefit obligation
|
37,074
|
37,079
|
||||||
|
Other noncurrent liabilities
|
19,908
|
17,989
|
||||||
|
Total deferred credits and other noncurrent liabilities
|
95,001
|
92,612
|
||||||
|
Stockholders' Equity
|
||||||||
|
Common stock
|
6,495
|
6,495
|
||||||
|
Additional paid-in capital
|
90,977
|
91,108
|
||||||
|
Retained earnings
|
28,490
|
27,736
|
||||||
|
Treasury stock
|
(46,804
|
)
|
(47,029
|
)
|
||||
|
Accumulated other comprehensive income
|
7,341
|
8,060
|
||||||
|
Noncontrolling interest
|
605
|
554
|
||||||
|
Total stockholders' equity
|
87,104
|
86,924
|
||||||
|
Total Liabilities and Stockholders' Equity
|
$
|
308,028
|
$
|
292,829
|
||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Consolidated Statements of Cash Flows
|
||||||||
|
Dollars in millions
|
||||||||
|
Three months ended March 31,
|
||||||||
|
2015
|
2014
|
|||||||
|
Operating Activities
|
||||||||
|
Net income
|
$
|
3,276
|
$
|
3,734
|
||||
|
Adjustments to reconcile net income to
|
||||||||
|
net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
4,578
|
4,617
|
||||||
|
Undistributed earnings from investments in equity affiliates
|
-
|
17
|
||||||
|
Provision for uncollectible accounts
|
285
|
241
|
||||||
|
Deferred income tax expense
|
214
|
578
|
||||||
|
Net gain from sale of investments, net of impairments
|
(33
|
)
|
(122
|
)
|
||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Accounts receivable
|
739
|
(498
|
)
|
|||||
|
Other current assets
|
13
|
(340
|
)
|
|||||
|
Accounts payable and accrued liabilities
|
(1,817
|
)
|
1,025
|
|||||
|
Retirement benefit funding
|
(140
|
)
|
(140
|
)
|
||||
|
Other - net
|
(377
|
)
|
(313
|
)
|
||||
|
Total adjustments
|
3,462
|
5,065
|
||||||
|
Net Cash Provided by Operating Activities
|
6,738
|
8,799
|
||||||
|
Investing Activities
|
||||||||
|
Construction and capital expenditures:
|
||||||||
|
Capital expenditures
|
(3,848
|
)
|
(5,716
|
)
|
||||
|
Interest during construction
|
(123
|
)
|
(55
|
)
|
||||
|
Acquisitions, net of cash acquired
|
(19,514
|
)
|
(662
|
)
|
||||
|
Dispositions
|
8
|
351
|
||||||
|
Sale of securities
|
1,890
|
-
|
||||||
|
Net Cash Used in Investing Activities
|
(21,587
|
)
|
(6,082
|
)
|
||||
|
Financing Activities
|
||||||||
|
Net change in short-term borrowings with
|
||||||||
|
original maturities of three months or less
|
-
|
(17
|
)
|
|||||
|
Issuance of long-term debt
|
16,572
|
2,987
|
||||||
|
Repayment of long-term debt
|
(596
|
)
|
(1,867
|
)
|
||||
|
Purchase of treasury stock
|
-
|
(1,237
|
)
|
|||||
|
Issuance of treasury stock
|
8
|
13
|
||||||
|
Dividends paid
|
(2,434
|
)
|
(2,398
|
)
|
||||
|
Other
|
(2,860
|
)
|
74
|
|||||
|
Net Cash Provided by (Used in) Financing Activities
|
10,690
|
(2,445
|
)
|
|||||
|
Net (decrease) increase in cash and cash equivalents
|
(4,159
|
)
|
272
|
|||||
|
Cash and cash equivalents beginning of year
|
8,603
|
3,339
|
||||||
|
Cash and Cash Equivalents End of Period
|
$
|
4,444
|
$
|
3,611
|
||||
|
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
|
|||||||||||
|
3/31/2015
|
3/31/2014
|
% Chg
|
||||||||||
|
Wireless
|
||||||||||||
|
Subscribers and Connections
|
||||||||||||
|
Total
|
121,772
|
116,014
|
5.0
|
%
|
||||||||
|
Postpaid
|
76,175
|
73,291
|
3.9
|
%
|
||||||||
|
Prepaid1
|
10,037
|
10,411
|
-3.6
|
%
|
||||||||
|
Reseller
|
13,595
|
13,886
|
-2.1
|
%
|
||||||||
|
Connected Devices1
|
21,965
|
18,426
|
19.2
|
%
|
||||||||
|
Wireless Net Adds
|
||||||||||||
|
Total
|
1,218
|
1,062
|
14.7
|
%
|
||||||||
|
Postpaid
|
441
|
625
|
-29.4
|
%
|
||||||||
|
Prepaid1
|
98
|
88
|
11.4
|
%
|
||||||||
|
Reseller
|
(266
|
)
|
(206
|
)
|
-29.1
|
%
|
||||||
|
Connected Devices1
|
945
|
555
|
70.3
|
%
|
||||||||
|
M&A Activity, Partitioned Customers and Other Adjs.
|
-
|
4,576
|
-
|
|||||||||
|
Wireless Churn
|
||||||||||||
|
Postpaid Churn
|
1.02
|
%
|
1.07
|
%
|
-5 BP
|
|||||||
|
Total Churn
|
1.40
|
%
|
1.39
|
%
|
1 BP
|
|||||||
|
Other
|
||||||||||||
|
Licensed POPs (000,000)
|
321
|
321
|
-
|
|||||||||
|
Wireline
|
||||||||||||
|
Voice
|
||||||||||||
|
Total Wireline Voice Connections
|
24,149
|
27,716
|
-12.9
|
%
|
||||||||
|
Net Change
|
(629
|
)
|
(773
|
)
|
18.6
|
%
|
||||||
|
Broadband
|
||||||||||||
|
Total Wireline Broadband Connections
|
16,097
|
16,503
|
-2.5
|
%
|
||||||||
|
Net Change
|
69
|
78
|
-11.5
|
%
|
||||||||
|
Video
|
||||||||||||
|
Total U-verse Video Connections
|
5,993
|
5,661
|
5.9
|
%
|
||||||||
|
Net Change
|
50
|
201
|
-75.1
|
%
|
||||||||
|
Consumer Revenue Connections
|
||||||||||||
|
Broadband2
|
14,537
|
14,807
|
-1.8
|
%
|
||||||||
|
U-verse Video Connections
|
5,969
|
5,642
|
5.8
|
%
|
||||||||
|
Voice3
|
13,669
|
15,775
|
-13.4
|
%
|
||||||||
|
Total Consumer Revenue Connections2
|
34,175
|
36,224
|
-5.7
|
%
|
||||||||
|
Net Change
|
(191
|
)
|
(166
|
)
|
-15.1
|
%
|
||||||
|
AT&T Inc.
|
||||||||||||
|
Construction and capital expenditures:
|
||||||||||||
|
Capital expenditures
|
$
|
3,848
|
$
|
5,716
|
-32.7
|
%
|
||||||
|
Interest during construction
|
$
|
123
|
$
|
55
|
-
|
|||||||
|
Dividends Declared per Share
|
$
|
0.47
|
$
|
0.46
|
2.2
|
%
|
||||||
|
End of Period Common Shares Outstanding (000,000)
|
5,193
|
5,195
|
-
|
|||||||||
|
Debt Ratio4
|
52.5
|
%
|
46.6
|
%
|
590 BP
|
|||||||
|
Total Employees
|
250,790
|
246,730
|
1.6
|
%
|
||||||||
|
1
|
Prior year amounts restated to conform to current period reporting methodology.
|
||||
|
2
|
Consumer wireline broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband.
|
||||
|
3
|
Includes consumer U-verse Voice over Internet Protocol connections of 5,009 as of March 31, 2015.
|
||||
|
4
|
Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
Note: For the end of 1Q15, total switched access lines were 18,949; retail business switched access lines totaled 8,784; and wholesale,
national mass markets and coin switched access lines totaled 1,505.
|
||||
|
Financial Data
|
||||||||
|
AT&T Inc.
|
||||||||
|
Non-GAAP Consolidated Reconciliation
|
||||||||
|
Free Cash Flow
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2014
|
2015
|
|||||||
|
Net cash provided by operating activities
|
$
|
8,799
|
$
|
6,738
|
||||
|
Less: Construction and capital expenditures
|
(5,771
|
)
|
(3,971
|
)
|
||||
|
Free Cash Flow
|
$
|
3,028
|
$
|
2,767
|
||||
|
Free Cash Flow after Dividends
|
||||||||
|
Dollars in millions
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2014
|
2015
|
|||||||
|
Net cash provided by operating activities
|
$
|
8,799
|
$
|
6,738
|
||||
|
Less: Construction and capital expenditures
|
(5,771
|
)
|
(3,971
|
)
|
||||
|
Free Cash Flow
|
3,028
|
2,767
|
||||||
|
Less: Dividends paid
|
(2,398
|
)
|
(2,434
|
)
|
||||
|
Free Cash Flow after Dividends
|
$
|
630
|
$
|
333
|
||||
|
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
|
||||||||||||
|
Adjusted Operating Income and Margin
|
||||||||||||
|
Dollars in millions
|
||||||||||||
|
Unaudited
|
||||||||||||
|
Three Months Ended
|
||||||||||||
|
March 31,
|
||||||||||||
|
2013
|
2014
|
2015
|
||||||||||
|
Operating Revenues
|
$
|
31,356
|
$
|
32,476
|
$
|
32,576
|
||||||
|
Reported Operating Income
|
$
|
5,940
|
$
|
6,278
|
$
|
5,456
|
||||||
|
Adjustments:
|
||||||||||||
|
Merger and integration costs1
|
-
|
92
|
348
|
|||||||||
|
Employee separation charges2
|
-
|
-
|
217
|
|||||||||
|
Adjusted Operating Income
|
$
|
5,940
|
$
|
6,370
|
$
|
6,021
|
||||||
|
Year-over-year growth - Adjusted
|
7.2
|
%
|
-5.5
|
%
|
||||||||
|
Adjusted Operating Income Margin*
|
18.9
|
%
|
19.6
|
%
|
18.5
|
%
|
||||||
|
1 Includes domestic wireless and Iusacell integration costs and DIRECTV merger costs.
2 Includes $150M of pension termination charges and $67M severance and other charges.
|
||||||||||||
|
Adjusted Operating Income and Margin are non-GAAP financial measures calculated by excluding from operating revenues and operating expenses significant items that are non-operational or non-recurring in nature. 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 Margin 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 Operating Income and Margin, as presented, may differ from similarly titled measures reported by other companies.
*Adjusted Operating Income Margin is calculated by dividing Adjusted Operating Income by Operating Revenues.
|
||||||||||||
|
Financial Data
|
|||||||
|
AT&T Inc.
|
|||||||
|
Non-GAAP Consolidated Reconciliation
|
|||||||
|
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
|||||||
|
Dollars in millions
|
|||||||
|
Unaudited
|
|||||||
|
Three Months Ended
|
|||||||
|
3/31/15
|
YTD 2015
|
||||||
|
Operating Revenues
|
$
|
32,576
|
$
|
32,576
|
|||
|
Operating Expenses
|
27,120
|
27,120
|
|||||
|
Total Operating Income
|
5,456
|
5,456
|
|||||
|
Add Back Depreciation and Amortization
|
4,578
|
4,578
|
|||||
|
Consolidated Reported EBITDA
|
10,034
|
10,034
|
|||||
|
Add Back:
|
|||||||
|
Merger and integration costs1
|
298
|
298
|
|||||
|
Pension termination charges
|
150
|
150
|
|||||
|
Total Consolidated Adjusted EBITDA
|
10,482
|
||||||
|
Annualized Consolidated Adjusted EBITDA
|
$
|
41,928
|
|||||
|
End-of-period current debt
|
8,181
|
||||||
|
End-of-period long-term debt
|
88,272
|
||||||
|
Total End-of-Period Debt
|
96,453
|
||||||
|
Less Cash and Cash Equivalents
|
4,444
|
||||||
|
Net Debt Balance
|
$
|
92,009
|
|||||
|
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
2.19
|
||||||
|
1 Adjustments include Operations and Support expenses for domestic wireless and Iusacell integration costs and DIRECTV merger costs.
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 Diluted EPS
|
||||||||
|
Unaudited
|
||||||||
|
Three Months Ended
|
||||||||
|
March 31,
|
||||||||
|
2014
|
2015
|
|||||||
|
Reported Diluted EPS
|
$
|
0.70
|
$
|
0.61
|
||||
|
Adjustments:
|
||||||||
|
Merger and integration costs1
|
0.01
|
0.04
|
||||||
|
Employee separation charges
|
-
|
0.03
|
||||||
|
Tax-related item
|
-
|
(0.05
|
)
|
|||||
|
Adjusted Diluted EPS
|
$
|
0.71
|
$
|
0.63
|
||||
|
Year-over-year growth - Adjusted
|
-11.3
|
%
|
||||||
|
Weighted Average Common Shares Outstanding
|
||||||||
|
with Dilution (000,000)
|
5,238
|
5,219
|
||||||
|
1Includes domestic wireless and Iusacell 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.
|
||||||||
|
Sum of components may not tie due to rounding.
|
||||||||
|
Financial Data
|
||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||
|
Non-GAAP Wireless Reconciliation
|
||||||||||||||||||||
|
Wireless Segment EBITDA
|
||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
3/31/14
|
6/30/14
|
9/30/14
|
12/31/14
|
3/31/15
|
||||||||||||||||
|
Segment Operating Revenues
|
||||||||||||||||||||
|
Service
|
$
|
15,387
|
$
|
15,148
|
$
|
15,423
|
$
|
15,074
|
$
|
14,812
|
||||||||||
|
Equipment
|
2,479
|
2,782
|
2,914
|
4,785
|
3,374
|
|||||||||||||||
|
Total Segment Operating Revenues
|
$
|
17,866
|
$
|
17,930
|
$
|
18,337
|
$
|
19,859
|
$
|
18,186
|
||||||||||
|
Segment Operating Expenses
|
||||||||||||||||||||
|
Operations and support
|
10,882
|
11,568
|
11,855
|
14,619
|
11,681
|
|||||||||||||||
|
Depreciation and amortization
|
1,931
|
2,035
|
1,965
|
2,010
|
2,058
|
|||||||||||||||
|
Total Segment Operating Expenses
|
12,813
|
13,603
|
13,820
|
16,629
|
13,739
|
|||||||||||||||
|
Segment Operating Income
|
5,053
|
4,327
|
4,517
|
3,230
|
4,447
|
|||||||||||||||
|
Segment Operating Income Margin
|
28.3
|
%
|
24.1
|
%
|
24.6
|
%
|
16.3
|
%
|
24.5
|
%
|
||||||||||
|
Plus: Depreciation and amortization
|
1,931
|
2,035
|
1,965
|
2,010
|
2,058
|
|||||||||||||||
|
EBITDA1
|
$
|
6,984
|
$
|
6,362
|
$
|
6,482
|
$
|
5,240
|
$
|
6,505
|
||||||||||
|
EBITDA as a % of Service Revenues2
|
45.4
|
%
|
42.0
|
%
|
42.0
|
%
|
34.8
|
%
|
43.9
|
%
|
||||||||||
|
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
|
|||||||||||
|
March 31,
|
||||||||||||
|
2013
|
2014
|
2015
|
||||||||||
|
Service Revenues
|
$
|
15,062
|
$
|
15,387
|
$
|
14,812
|
||||||
|
EBITDA1
|
$
|
6,511
|
$
|
6,984
|
$
|
6,505
|
||||||
|
EBITDA as a % of Service Revenues2
|
43.2
|
%
|
45.4
|
%
|
43.9
|
%
|
||||||
|
Adjustments:
|
||||||||||||
|
Wireless integration expense3
|
-
|
17
|
209
|
|||||||||
|
Adjusted EBITDA1
|
$
|
6,511
|
$
|
7,001
|
$
|
6,714
|
||||||
|
Adjusted EBITDA as a % of Adjusted Service Revenues2
|
43.2
|
%
|
45.5
|
%
|
45.3
|
%
|
||||||
|
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 domestic wireless integration costs.
|
||||||||||||
|
|
||||||||||||
|
Financial Data
|
||||||||||||
|
AT&T Inc.
|
||||||||||||
|
Non-GAAP Wireline Reconciliation
|
||||||||||||
|
Wireline Segment EBITDA
|
||||||||||||
|
Dollars in millions
|
||||||||||||
|
Unaudited
|
||||||||||||
|
Three Months Ended
|
||||||||||||
|
3/31/14
|
12/31/14
|
3/31/15
|
||||||||||
|
Segment Operating Revenues
|
||||||||||||
|
Service
|
$
|
14,389
|
$
|
14,240
|
$
|
13,935
|
||||||
|
Equipment
|
212
|
332
|
213
|
|||||||||
|
Total Segment Operating Revenues
|
$
|
14,601
|
$
|
14,572
|
$
|
14,148
|
||||||
|
Segment Operating Expenses
|
||||||||||||
|
Operations and support
|
10,457
|
10,553
|
10,263
|
|||||||||
|
Depreciation and amortization
|
2,684
|
2,554
|
2,476
|
|||||||||
|
Total Segment Operating Expenses
|
13,141
|
13,107
|
12,739
|
|||||||||
|
Segment Operating Income
|
1,460
|
1,465
|
1,409
|
|||||||||
|
Segment Operating Income Margin
|
10.0
|
%
|
10.1
|
%
|
10.0
|
%
|
||||||
|
Plus: Depreciation and amortization
|
2,684
|
2,554
|
2,476
|
|||||||||
|
EBITDA1
|
$
|
4,144
|
$
|
4,019
|
$
|
3,885
|
||||||
|
EBITDA Margin
|
28.4
|
%
|
27.6
|
%
|
27.5
|
%
|
||||||
|
1EBITDA is defined as Operating Income Before Depreciation and Amortization.
|
||||||||||||
|
Financial Data
|
||||||||||||||||||||||||||||||||
|
AT&T Inc.
|
||||||||||||||||||||||||||||||||
|
Non-GAAP Reconciliation of Revenues
|
||||||||||||||||||||||||||||||||
|
Adjusted Operating Revenues to Exclude Connecticut Wireline Properties1
|
||||||||||||||||||||||||||||||||
|
Dollars in millions
|
||||||||||||||||||||||||||||||||
|
Unaudited
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
|
6/30/13
|
9/30/13
|
12/31/13
|
3/31/14
|
6/30/14
|
9/30/14
|
12/31/14
|
3/31/15
|
|||||||||||||||||||||||||
|
Connecticut Wireline Operating Revenues
|
||||||||||||||||||||||||||||||||
|
Consumer Markets
|
$
|
169
|
$
|
169
|
$
|
169
|
$
|
174
|
$
|
173
|
$
|
170
|
$
|
43
|
$
|
-
|
||||||||||||||||
|
AT&T Business Solutions
|
111
|
109
|
107
|
101
|
99
|
101
|
24
|
-
|
||||||||||||||||||||||||
|
Other
|
1
|
1
|
(1
|
)
|
-
|
2
|
1
|
-
|
-
|
|||||||||||||||||||||||
|
Connecticut Wireline Operating Revenues
|
$
|
281
|
$
|
279
|
$
|
275
|
$
|
275
|
$
|
274
|
$
|
272
|
$
|
67
|
$
|
-
|
||||||||||||||||
|
Total AT&T Operating Revenues
|
$
|
32,075
|
$
|
32,158
|
$
|
33,163
|
$
|
32,476
|
$
|
32,575
|
$
|
32,957
|
$
|
34,439
|
$
|
32,576
|
||||||||||||||||
|
Less Connecticut Wireline
|
(281
|
)
|
(279
|
)
|
(275
|
)
|
(275
|
)
|
(274
|
)
|
(272
|
)
|
(67
|
)
|
-
|
|||||||||||||||||
|
Adjusted AT&T Operating Revenues
|
$
|
31,794
|
$
|
31,879
|
$
|
32,888
|
$
|
32,201
|
$
|
32,301
|
$
|
32,685
|
$
|
34,372
|
$
|
32,576
|
||||||||||||||||
|
Year-over-Year growth - Adjusted
|
1.6
|
%
|
2.5
|
%
|
4.5
|
%
|
1.2
|
%
|
||||||||||||||||||||||||
|
Wireline Operating Revenues
|
$
|
14,773
|
$
|
14,670
|
$
|
14,716
|
$
|
14,601
|
$
|
14,637
|
$
|
14,615
|
$
|
14,572
|
$
|
14,148
|
||||||||||||||||
|
Less Connecticut Wireline
|
(281
|
)
|
(279
|
)
|
(275
|
)
|
(275
|
)
|
(274
|
)
|
(272
|
)
|
(67
|
)
|
-
|
|||||||||||||||||
|
Adjusted Wireline Operating Revenues
|
$
|
14,492
|
$
|
14,391
|
$
|
14,441
|
$
|
14,326
|
$
|
14,363
|
$
|
14,343
|
$
|
14,505
|
$
|
14,148
|
||||||||||||||||
|
Year-over-Year growth - Adjusted
|
-0.9
|
%
|
-0.3
|
%
|
0.4
|
%
|
-1.2
|
%
|
||||||||||||||||||||||||
|
Wireline Consumer Operating Revenues
|
$
|
5,579
|
$
|
5,567
|
$
|
5,638
|
$
|
5,715
|
$
|
5,748
|
$
|
5,735
|
$
|
5,643
|
$
|
5,658
|
||||||||||||||||
|
Less Connecticut Wireline
|
(169
|
)
|
(169
|
)
|
(169
|
)
|
(174
|
)
|
(173
|
)
|
(170
|
)
|
(43
|
)
|
-
|
|||||||||||||||||
|
Adjusted Wireline Consumer Operating Revenues
|
$
|
5,410
|
$
|
5,398
|
$
|
5,469
|
$
|
5,541
|
$
|
5,575
|
$
|
5,565
|
$
|
5,600
|
$
|
5,658
|
||||||||||||||||
|
Year-over-Year growth - Adjusted
|
3.0
|
%
|
3.1
|
%
|
2.4
|
%
|
2.1
|
%
|
||||||||||||||||||||||||
|
Wireline Business Solutions Operating Revenues
|
$
|
8,927
|
$
|
8,849
|
$
|
8,839
|
$
|
8,670
|
$
|
8,672
|
$
|
8,669
|
$
|
8,596
|
$
|
8,288
|
||||||||||||||||
|
Less Connecticut Wireline
|
(111
|
)
|
(109
|
)
|
(107
|
)
|
(101
|
)
|
(99
|
)
|
(101
|
)
|
(24
|
)
|
-
|
|||||||||||||||||
|
Adjusted Wireline Business Solutions Operating Revenues
|
$
|
8,816
|
$
|
8,739
|
$
|
8,733
|
$
|
8,569
|
$
|
8,572
|
$
|
8,568
|
$
|
8,572
|
$
|
8,288
|
||||||||||||||||
|
Year-over-Year growth - Adjusted
|
-2.8
|
%
|
-2.0
|
%
|
-1.8
|
%
|
-3.3
|
%
|
||||||||||||||||||||||||
|
Wireline Strategic Business Services Revenues2
|
$
|
2,095
|
$
|
2,154
|
$
|
2,251
|
$
|
2,289
|
$
|
2,382
|
$
|
2,467
|
$
|
2,565
|
$
|
2,628
|
||||||||||||||||
|
Less Connecticut Wireline
|
(9
|
)
|
(9
|
)
|
(10
|
)
|
(11
|
)
|
(11
|
)
|
(13
|
)
|
(2
|
)
|
-
|
|||||||||||||||||
|
Adjusted Wireline Business Operating Revenues
|
$
|
2,086
|
$
|
2,145
|
$
|
2,240
|
$
|
2,278
|
$
|
2,370
|
$
|
2,454
|
$
|
2,563
|
$
|
2,628
|
||||||||||||||||
|
Year-over-Year growth - Adjusted
|
13.6
|
%
|
14.4
|
%
|
14.4
|
%
|
15.4
|
%
|
||||||||||||||||||||||||
|
Wireline U-verse Services Revenue
|
$
|
2,931
|
$
|
3,061
|
$
|
3,276
|
$
|
3,470
|
$
|
3,657
|
$
|
3,791
|
$
|
3,898
|
$
|
4,047
|
||||||||||||||||
|
Less Connecticut Wireline
|
(91
|
)
|
(95
|
)
|
(100
|
)
|
(105
|
)
|
(109
|
)
|
(111
|
)
|
(28
|
)
|
-
|
|||||||||||||||||
|
Adjusted U-verse Services Revenues
|
$
|
2,840
|
$
|
2,966
|
$
|
3,176
|
$
|
3,365
|
$
|
3,548
|
$
|
3,680
|
$
|
3,870
|
$
|
4,047
|
||||||||||||||||
|
Year-over-Year growth - Adjusted
|
24.9
|
%
|
24.1
|
%
|
21.9
|
%
|
20.3
|
%
|
||||||||||||||||||||||||
|
1Prior-period amounts restated to conform to current-period reporting methodology and divestiture of Connecticut Wireline Properties. Sum of segments' revenues within a quarter might not tie to total revenues due to rounding.
2Strategic business services are AT&T's most advanced business solutions, including VPNs, Ethernet, cloud, hosting, IP conferencing, VoIP, MIS over Ethernet, U-verse and security services.
|
||||||||||||||||||||||||||||||||
|
Adjusted Operating Revenues is a non-GAAP financial measure calculated by excluding the operating revenues of Connecticut Wireline Properties sold in October 2014. Management believes that these measures 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 Operating Revenues 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.
|
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