AT&T INC. - FORM 8-K - EX-99.1 - AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA

Attached files

file	filename
8-K - AT&T INC.	q3earnings801_8k.htm

Financial Data

AT&T Inc.
Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	Three Months Ended									Nine Months Ended
	9/30/2015			9/30/2014			% Chg			9/30/2015			9/30/2014			% Chg
Operating Revenues
Service	$	35,625		$	29,790			19.6	%	$	94,128		$	89,122			5.6	%
Equipment		3,466			3,167			9.4	%		10,554			8,886			18.8	%
Total Operating Revenues		39,091			32,957			18.6	%		104,682			98,008			6.8	%

Operating Expenses
Cost of services and sales
Equipment		4,313			4,432			-2.7	%		13,035			12,503			4.3	%
Broadcast, programming and operations		4,081			1,038			-			6,351			3,019			-
Other cost of services and sales (exclusive of depreciation and amortization shown separately below)		9,402			8,866			-6.0	%		27,969			26,167			-6.9	%
Selling, general and administrative		9,107			8,475			7.5	%		24,535			24,932			-1.6	%
Depreciation and amortization		6,265			4,539			38.0	%		15,539			13,706			13.4	%
Total Operating Expenses		33,168			27,350			21.3	%		87,429			80,327			8.8	%
Operating Income		5,923			5,607			5.6	%		17,253			17,681			-2.4	%
Interest Expense		1,146			1,016			12.8	%		2,977			2,757			8.0	%
Equity in Net Income (Loss) of Affiliates		15			(2	)		-			48			188			-74.5	%
Other (Expense) Income - Net		(57	)		42			-			61			1,456			-95.8	%
Income Before Income Taxes		4,735			4,631			2.2	%		14,385			16,568			-13.2	%
Income Tax Expense		1,657			1,444			14.8	%		4,784			5,914			-19.1	%
Net Income		3,078			3,187			-3.4	%		9,601			10,654			-9.9	%
Less: Net Income Attributable to Noncontrolling Interest		(84	)		(57	)		-47.4	%		(262	)		(213	)		-23.0	%
Net Income Attributable to AT&T	$	2,994		$	3,130			-4.3	%	$	9,339		$	10,441			-10.6	%


Basic Earnings Per Share Attributable to AT&T	$	0.50		$	0.60			-16.7	%	$	1.71		$	2.00			-14.5	%
Weighted Average Common Shares Outstanding (000,000)		5,924			5,198			14.0	%		5,447			5,208			4.6	%

Diluted Earnings Per Share Attributable to AT&T	$	0.50		$	0.60			-16.7	%	$	1.71		$	2.00			-14.5	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		5,943			5,214			14.0	%		5,463			5,224			4.6	%

Financial Data

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended										Nine Months Ended
		9/30/2015			9/30/2014			% Chg				9/30/2015			9/30/2014			% Chg
Business Solutions
Segment Operating Revenues
Wireless service		$	7,732		$	7,542			2.5	%		$	23,003		$	22,593			1.8	%
Fixed strategic services			2,763			2,454			12.6	%			8,083			7,103			13.8	%
Legacy voice and data services			4,499			4,928			-8.7	%			13,743			15,055			-8.7	%
Other services			885			977			-9.4	%			2,585			2,834			-8.8	%
Wireless equipment			1,813			1,586			14.3	%			5,499			4,292			28.1	%
Total Segment Operating Revenues			17,692			17,487			1.2	%			52,913			51,877			2.0	%

Segment Operating Expenses
Operations and Support Expenses			10,921			11,295			-3.3	%			32,966			32,836			0.4	%
Depreciation and amortization			2,474			2,331			6.1	%			7,276			7,009			3.8	%
Total Segment Operating Expenses			13,395			13,626			-1.7	%			40,242			39,845			1.0	%
Segment Operating Income			4,297			3,861			11.3	%			12,671			12,032			5.3	%
Equity in Net Income of Affiliates			-			-			-				-			-			-
Segment Contribution		$	4,297		$	3,861			11.3	%		$	12,671		$	12,032			5.3	%

Segment Operating Income Margin			24.3	%		22.1	%						23.9	%		23.2	%


Entertainment and Internet Services
Segment Operating Revenues
Video entertainment		$	7,162		$	1,719			-			$	11,024		$	5,016			-
High-speed internet			1,685			1,414			19.2	%			4,861			4,040			20.3	%
Legacy voice and data services			1,419			1,834			-22.6	%			4,547			5,897			-22.9	%
Equipment and other			592			586			1.0	%			1,868			1,687			10.7	%
Total Segment Operating Revenues			10,858			5,553			95.5	%			22,300			16,640			34.0	%

Segment Operating Expenses
Operations and Support Expenses			8,450			4,781			76.7	%			18,222			14,182			28.5	%
Depreciation and amortization			1,389			1,109			25.2	%			3,519			3,396			3.6	%
Total Segment Operating Expenses			9,839			5,890			67.0	%			21,741			17,578			23.7	%
Segment Operating Income			1,019			(337	)		-				559			(938	)		-
Equity in Net Income (Loss) of Affiliates			2			-			-				(16	)		-			-
Segment Contribution		$	1,021		$	(337	)		-			$	543		$	(938	)		-

Segment Operating Income Margin			9.4	%		-6.1	%						2.5	%		-5.6	%


Financial Data

AT&T Inc.
Statements of Segment Income
Dollars in millions
Unaudited
	Three Months Ended										Nine Months Ended
		9/30/2015			9/30/2014			% Chg				9/30/2015			9/30/2014			% Chg
Consumer Mobility
Segment Operating Revenues
Postpaid wireless service		$	5,527		$	6,071			-9.0	%		$	16,783		$	18,490			-9.2	%
Prepaid wireless service			1,198			1,163			3.0	%			3,411			3,106			9.8	%
Other service revenue			638			646			-1.2	%			1,825			1,768			3.2	%
Equipment			1,421			1,328			7.0	%			4,298			3,883			10.7	%
Total Segment Operating Revenues			8,784			9,208			-4.6	%			26,317			27,247			-3.4	%

Segment Operating Expenses
Operations and Support Expenses			5,065			5,731			-11.6	%			15,808			17,173			-7.9	%
Depreciation and amortization			976			950			2.7	%			2,912			2,846			2.3	%
Total Segment Operating Expenses			6,041			6,681			-9.6	%			18,720			20,019			-6.5	%
Segment Operating Income			2,743			2,527			8.5	%			7,597			7,228			5.1	%
Equity in Net Income (Loss) of Affiliates			-			(1	)		-				-			(1	)		-
Segment Contribution		$	2,743		$	2,526			8.6	%		$	7,597		$	7,227			5.1	%

Segment Operating Income Margin			31.2	%		27.4	%						28.9	%		26.5	%


International
Segment Operating Revenues
Video entertainment		$	945		$	-			-			$	945		$	-			-
Wireless service			494			-			-				1,153			-			-
Wireless equipment			87			-			-				155			-			-
Total Segment Operating Revenues			1,526			-			-				2,253			-			-

Segment Operating Expenses
Operations and Support Expenses			1,384			-			-				2,131			-			-
Depreciation and amortization			225			-			-				346			-			-
Total Segment Operating Expenses			1,609			-			-				2,477			-			-
Segment Operating Income (Loss)			(83	)		-			-				(224	)		-			-
Equity in Net Income (Loss) of Affiliates			(4	)		-			-				(4	)		153			-
Segment Contribution		$	(87	)	$	-			-			$	(228	)	$	153			-

Segment Operating Income Margin			-5.4	%									-9.9	%

Financial Data

AT&T Inc.
Consolidated Balance Sheets
Dollars in millions
Unaudited	9/30/15			12/31/14
				As Adjusted

Assets
Current Assets
Cash and cash equivalents	$	6,202		$	8,603
Accounts receivable - net of allowances for doubtful accounts of $656 and $454		16,329			14,527
Prepaid expenses		1,166			831
Other current assets		11,254			9,802
Total current assets		34,951			33,763
Property, Plant and Equipment - Net		122,836			112,898
Goodwill		105,966			69,692
Licenses		93,063			60,824
Customer Lists and Relationships - Net		19,608			812
Other Intangible Assets - Net		8,236			5,327
Investments in Equity Affiliates		1,744			250
Other Assets		13,585			13,659
Total Assets	$	399,989		$	297,225

Liabilities and Stockholders' Equity
Current Liabilities
Debt maturing within one year	$	7,535		$	6,056
Accounts payable and accrued liabilities		28,280			23,592
Advanced billing and customer deposits		4,640			4,105
Accrued taxes		4,591			1,136
Dividends payable		2,892			2,438
Total current liabilities		47,938			37,327
Long-Term Debt		119,395			76,011
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		53,044			38,549
Postemployment benefit obligation		36,396			37,079
Other noncurrent liabilities		20,427			17,989
Total deferred credits and other noncurrent liabilities		109,867			93,617
Stockholders' Equity
Common stock		6,495			6,495
Additional paid-in capital		89,717			91,108
Retained earnings		32,627			31,081
Treasury stock		(12,309	)		(47,029	)
Accumulated other comprehensive income		5,294			8,061
Noncontrolling interest		965			554
Total stockholders' equity		122,789			90,270
Total Liabilities and Stockholders' Equity	$	399,989		$	297,225

Financial Data

AT&T Inc.
Consolidated Statements of Cash Flows
Dollars in millions
Unaudited
	Nine months ended September 30,
	2015			2014
				As Adjusted
Operating Activities
Net income	$	9,601		$	10,654
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		15,539			13,706
Undistributed earnings from investments in equity affiliates		(36	)		(45	)
Provision for uncollectible accounts		895			692
Deferred income tax expense		1,539			1,450
Net gain from sale of investments, net of impairments		(46	)		(1,374	)
Changes in operating assets and liabilities:
Accounts receivable		453			(1,269	)
Other current assets		350			(840	)
Accounts payable and accrued liabilities		1,279			4,790
Retirement benefit funding		(595	)		(420	)
Other - net		(2,284	)		(1,751	)
Total adjustments		17,094			14,939
Net Cash Provided by Operating Activities		26,695			25,593

Investing Activities
Construction and capital expenditures:
Capital expenditures		(13,356	)		(16,829	)
Interest during construction		(566	)		(178	)
Acquisitions, net of cash acquired		(30,694	)		(2,053	)
Dispositions		79			6,074
Sales (purchases) of securities, net		1,490			(1,996	)
Return of advances to and investments in equity affiliates		-			3
Other		-			(1	)
Net Cash Used in Investing Activities		(43,047	)		(14,980	)

Financing Activities
Net change in short-term borrowings with
original maturities of three months or less		(1	)		(16	)
Issuance of long-term debt		33,967			8,564
Repayment of long-term debt		(9,962	)		(10,376	)
Purchase of treasury stock		-			(1,617	)
Issuance of treasury stock		133			34
Dividends paid		(7,311	)		(7,170	)
Other		(2,875	)		(913	)
Net Cash Provided by (Used in) Financing Activities		13,951			(11,494	)
Net decrease in cash and cash equivalents		(2,401	)		(881	)
Cash and cash equivalents beginning of year		8,603			3,339
Cash and Cash Equivalents End of Period	$	6,202		$	2,458

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
	9/30/2015			9/30/2014			% Chg			9/30/2015			9/30/2014			% Chg
Business Solutions Wireless Subscribers											71,561			62,551			14.4	%
Postpaid											47,414			44,063			7.6	%
Reseller											83			6			-
Connected Devices¹											24,064			18,482			30.2	%

Business Solutions Wireless Net Adds		1,875			1,816			3.2	%		4,968			3,646			36.3	%
Postpaid		265			545			-51.4	%		850			1,498			-43.3	%
Reseller		8			(4	)		-			14			4			-
Connected Devices¹		1,602			1,275			25.6	%		4,104			2,144			91.4	%

Business Wireless Postpaid Churn		1.05	%		0.84	%	21 BP				0.95	%		0.84	%	11 BP

Consumer Mobility Subscribers											54,845			56,099			-2.2	%
Postpaid											29,257			31,043			-5.8	%
Prepaid¹											10,988			10,026			9.6	%
Reseller											13,647			13,877			-1.7	%
Connected Devices¹											953			1,153			-17.3	%

Consumer Mobility Net Adds		638			191			-			857			57			-
Postpaid		23			240			-90.4	%		289			938			-69.2	%
Prepaid¹		466			(46	)		-			895			(244	)		-
Reseller		149			91			63.7	%		(218	)		(286	)		23.8	%
Connected Devices¹		-			(94	)		-			(109	)		(351	)		68.9	%

Consumer Mobility Postpaid Churn		1.33	%		1.20	%	13 BP				1.23	%		1.15	%	8 BP
Total Consumer Mobility Churn		1.90	%		2.03	%	-13 BP				1.93	%		1.99	%	-6 BP

Entertainment and Internet Services Connections											52,637			34,694			51.7	%
Video Connections											25,424			5,848			-
Satellite											19,570			-			-
U-verse											5,854			5,848			0.1	%

Video Net Adds		(66	)		212			-			(40	)		591			-
Satellite		26			-			-			26			-			-
U-verse		(92	)		212			-			(66	)		591			-

Broadband Connections											14,322			14,465			-1.0	%
IP											12,185			11,010			10.7	%
DSL											2,137			3,455			-38.1	%

Broadband Net Adds		(106	)		68			-			(120	)		152			-
IP		172			547			-68.6	%		802			1,527			-47.5	%
DSL		(278	)		(479	)		42.0	%		(922	)		(1,375	)		32.9	%

Total Wireline Voice Connections											12,891			14,381			-10.4	%

AT&T International
Wireless Subscribers and Connections
Subscribers											8,091			-			-
Net Adds		(231	)		-			-			(689	)		-			-
Total Churn		5.61	%		-			-			6.87	%		-			-

Video Subscribers and Connections
Latin America Video Subscribers		(113	)		-			-			12,544			-			-
Pan Americana		16			-			-			7,006			-			-
Brazil		(129	)		-			-			5,538			-			-

AT&T Total Subscribers and Connections
AT&T Mobility Subscribers											126,406			118,650			6.5	%
Postpaid											76,671			75,105			2.1	%
Prepaid¹											10,988			10,026			9.6	%
Reseller											13,729			13,884			-1.1	%
Connected Devices¹											25,018			19,635			27.4	%

AT&T Mobility Net Adds		2,513			2,007			25.2	%		5,825			3,703			57.3	%
Postpaid		289			785			-63.2	%		1,140			2,436			-53.2	%
Prepaid¹		466			(46	)		-			895			(244	)		-
Reseller		156			87			79.3	%		(205	)		(281	)		27.0	%
Connected Devices¹		1,602			1,181			35.6	%		3,995			1,792			-
M&A Activity, Partitioned Customers and Other Adjs.		(9	)		9			-			27			4,571			-99.4	%

AT&T Mobility Churn
Postpaid Churn		1.16	%		0.99	%	17 BP				1.06	%		0.97	%	9 BP
Total Churn		1.33	%		1.36	%	-3 BP				1.35	%		1.41	%	-6 BP

Other
Domestic Licensed POPs (000,000)											321			321			-

Total Video Subscribers											37,994			6,067			-
Domestic											25,450			6,067			-
Pan Americana											7,006			-			-
Brazil											5,538			-			-

Total Video Net Adds		(178	)		216			-			(150	)		607			-
Domestic		(65	)		216			-			(37	)		607			-
Pan Americana		16			-			-			16			-			-
Brazil		(129	)		-			-			(129	)		-			-

Total Broadband Connections											15,832			16,486			-4.0	%
IP											13,076			12,098			8.1	%
DSL											2,756			4,388			-37.2	%

Broadband Net Adds		(129	)		38			-			(196	)		61			-
IP		192			601			-68.1	%		871			1,723			-49.4	%
DSL		(321	)		(563	)		43.0	%		(1,067	)		(1,662	)		35.8	%

Total Wireline Voice Connections											22,795			26,220			-13.1	%

AT&T Inc.
Construction and capital expenditures:
Capital expenditures	$	5,028		$	5,180			-2.9	%	$	13,356		$	16,829			-20.6	%
Interest during construction	$	227		$	60			-		$	566		$	178			-
Dividends Declared per Share	$	0.47		$	0.46			2.2	%	$	1.41		$	1.38			2.2	%
End of Period Common Shares Outstanding (000,000)											6,152			5,185			18.6	%
Debt Ratio²											50.8	%		43.9	%	690 BP
Total Employees											281,240			247,700			13.5	%

¹	Prior year amounts restated to conform to current period reporting methodology.
²	Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
	Notes: For the end of 3Q15, total switched access lines were 17,352.
	Business Solutions and Consumer Mobility may not total to AT&T Mobility due to rounding.

Financial Data

AT&T Inc.
Supplemental AT&T Mobility Results
Dollars in millions
Unaudited
	Three Months Ended									Nine Months Ended
	9/30/2015			9/30/2014			% Chg			9/30/2015			9/30/2014			% Chg
AT&T Mobility
Operating Revenues
Service	$	15,095		$	15,423			-2.1	%	$	45,022		$	45,958			-2.0	%
Equipment		3,234			2,914			11.0	%		9,797			8,175			19.8	%
Total Segment Operating Revenues		18,329			18,337			-			54,819			54,133			1.3	%

Operating Expenses
Operations and Support Expenses		10,865			11,683			-7.0	%		33,310			34,021			-2.1	%
Depreciation and amortization		2,046			1,909			7.2	%		6,082			5,785			5.1	%
Total Operating Expenses		12,911			13,592			-5.0	%		39,392			39,806			-1.0	%
Operating Income		5,418			4,745			14.2	%		15,427			14,327			7.7	%
Equity in Net Income (Loss) of Affiliates		-			(1	)		-			-			(1	)		-
Income	$	5,418		$	4,744			14.2	%	$	15,427		$	14,326			7.7	%

Operating Income Margin		29.6	%		25.9	%					28.1	%		26.5	%

AT&T INC. - FORM 8-K - EX-99.1 - AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA - October 22, 2015

Attached files

AT&T INC. Reports