AT&T INC. - FORM 8-K - EX-99.1 - AT&T INC. SELECTED FINANCIAL STATEMENTS AND OPERATING DATA - April 26, 2016

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8-K - AT&T INC. 1ST QUARTER 2016 EARNINGS RELEASE - AT&T INC.q1earnings801_8k.htm
Financial Data
             
AT&T Inc.  
Consolidated Statements of Income
            
Dollars in millions except per share amounts    
Unaudited
Three Months Ended
   
3/31/2016
    
3/31/2015
    
% Chg
             
Operating Revenues
            
  Service
  
$
37,101
    
$
28,962
      
28.1
%
  Equipment
    
3,434
      
3,614
      
-5.0
%
    Total Operating Revenues
    
40,535
      
32,576
      
24.4
%
                         
Operating Expenses
                        
  Cost of services and sales
                        
       Equipment
    
4,375
      
4,546
      
-3.8
%
       Broadcast, programming and operations
    
4,629
      
1,122
      
-
  
       Other cost of services (exclusive of depreciation
           and amortization shown separately below)
    
9,396
      
8,812
      
6.6
%
  Selling, general and administrative
    
8,441
      
7,961
      
6.0
%
  Depreciation and amortization
    
6,563
      
4,578
      
43.4
%
    Total Operating Expenses
    
33,404
      
27,019
      
23.6
%
Operating Income
    
7,131
      
5,557
      
28.3
%
Interest Expense
    
1,207
      
899
      
34.3
%
Equity in Net Income of Affiliates
    
13
      
-
      
-
  
Other Income (Expense) - Net
    
70
      
70
      
-
  
Income Before Income Taxes
    
6,007
      
4,728
      
27.1
%
Income Tax Expense
    
2,122
      
1,389
      
52.8
%
Net Income
    
3,885
      
3,339
      
16.4
%
  Less: Net Income Attributable to Noncontrolling Interest
    
(82
)
    
(76
)
    
-7.9
%
Net Income Attributable to AT&T
  
$
3,803
    
$
3,263
      
16.5
%
                         
                         
Basic Earnings Per Share Attributable to AT&T
  
$
0.62
    
$
0.63
      
-1.6
%
Weighted Average Common
     Shares Outstanding (000,000)
    
6,172
      
5,203
      
18.6
%
                         
Diluted Earnings Per Share Attributable to AT&T
  
$
0.61
    
$
0.63
      
-3.2
%
Weighted Average Common
     Shares Outstanding with Dilution (000,000)
    
6,190
      
5,219
      
18.6
%
 
 
 
Financial Data    
               
AT&T Inc.   
Statements of Segment Income
              
Dollars in millions    
Unaudited
              
    
Three Months Ended
      
   
3/31/2016
      
3/31/2015
    
% Chg
  
Business Solutions  
Segment Operating Revenues
                    
Wireless service
  
$
7,855
  
 
  
$
7,515
      
4.5
%
Fixed strategic services
    
2,786
        
2,549
      
9.3
%
Legacy voice and data services
    
4,338
        
4,754
      
-8.8
%
Other service and equipment
    
859
        
846
      
1.5
%
Wireless Equipment
    
1,771
        
1,893
      
-6.4
%
    Total Segment Operating Revenues
    
17,609
        
17,557
      
0.3
%
                           
Segment Operating Expenses
                          
Operations and Support Expenses
    
10,802
        
11,073
      
-2.4
%
Depreciation and amortization
    
2,508
        
2,342
      
7.1
%
    Total Segment Operating Expenses
    
13,310
        
13,415
      
-0.8
%
Segment Operating Income
    
4,299
        
4,142
      
3.8
%
Equity in Net Income of Affiliates
    
-
        
-
      
-
  
Segment Contribution
  
$
4,299
  
 
  
$
4,142
      
3.8
%
                           
Segment Operating Income Margin
    
24.4
% 
 
    
23.6
%
        
                           
Entertainment Group         
Segment Operating Revenues
                          
Video entertainment
  
$
8,904
  
 
  
$
1,871
      
-
  
High-speed internet
    
1,803
        
1,553
      
16.1
%
Legacy voice and data services
    
1,313
        
1,612
      
-18.5
%
Other service and equipment
    
638
        
624
      
2.2
%
    Total Segment Operating Revenues
    
12,658
        
5,660
      
-
  
                           
Segment Operating Expenses
                          
Operations and Support Expenses
    
9,578
        
4,859
      
97.1
%
Depreciation and amortization
    
1,488
        
1,065
      
39.7
%
    Total Segment Operating Expenses
    
11,066
        
5,924
      
86.8
%
Segment Operating Income (Loss)
    
1,592
        
(264
)
    
-
  
Equity in Net Income (Loss) of Affiliates
    
3
        
(6
)
    
-
  
Segment Contribution
  
$
1,595
  
 
  
$
(270
)
    
-
  
                           
Segment Operating Income Margin
    
12.6
%
 
    
-4.7
%
        
                           
Consumer Mobility         
Segment Operating Revenues
                          
Service
  
$
6,943
  
 
  
$
7,297
      
-4.9
%
Equipment
    
1,385
        
1,481
      
-6.5
%
    Total Segment Operating Revenues
    
8,328
        
8,778
      
-5.1
%
                           
Segment Operating Expenses
                          
Operations and Support Expenses
    
4,912
        
5,541
      
-11.4
%
Depreciation and amortization
    
922
        
1,002
      
-8.0
%
    Total Segment Operating Expenses
    
5,834
        
6,543
      
-10.8
%
Segment Operating Income
    
2,494
        
2,235
      
11.6
%
Equity in Net Income of Affiliates
    
-
        
-
      
-
  
Segment Contribution
  
$
2,494
  
 
  
$
2,235
      
11.6
%
                           
Segment Operating Income Margin
    
29.9
% 
 
    
25.5
%
        
                           
International          
Segment Operating Revenues
                          
Video entertainment
  
$
1,130
  
 
  
$
-
      
-
  
Wireless service
    
455
        
215
      
-
  
Wireless Equipment
    
82
        
21
      
-
  
    Total Segment Operating Revenues
    
1,667
        
236
      
-
  
                           
Segment Operating Expenses
                          
Operations and Support Expenses
    
1,588
        
218
      
-
  
Depreciation and amortization
    
277
        
28
      
-
  
    Total Segment Operating Expenses
    
1,865
        
246
      
-
  
Segment Operating Income (Loss)
    
(198
)
      
(10
)
    
-
  
Equity in Net Income of Affiliates
    
14
        
-
      
-
  
Segment Contribution
  
$
(184
)
 
  
$
(10
)
    
-
  
                           
Segment Operating Income Margin
    
-11.9
% 
 
    
-4.2
%
        
 
 
Financial Data
         
AT&T Inc.
Consolidated Balance Sheets
        
Dollars in millions
   
3/31/2016
    
12/31/2015
  
   
Unaudited
        
         
Assets
        
Current Assets
        
Cash and cash equivalents
  
$
10,008
    
$
5,121
  
Accounts receivable - net of allowances for doubtful accounts of $697 and $704
    
16,070
      
16,532
  
Prepaid expenses
    
1,378
      
1,072
  
Other current assets
    
10,545
      
13,267
  
Total current assets
    
38,001
      
35,992
  
Property, Plant and Equipment - Net
    
123,454
      
124,450
  
Goodwill
    
104,651
      
104,568
  
Licenses
    
94,130
      
93,093
  
Customer Lists and Relationships - Net
    
17,197
      
18,208
  
Other Intangible Assets - Net
    
9,108
      
9,409
  
Investments in Equity Affiliates
    
1,594
      
1,606
  
Other Assets
    
15,503
      
15,346
  
Total Assets
  
$
403,638
    
$
402,672
  
                 
Liabilities and Stockholders' Equity
                
Current Liabilities
                
Debt maturing within one year
  
$
8,399
    
$
7,636
  
Accounts payable and accrued liabilities
    
26,169
      
30,372
  
Advanced billing and customer deposits
    
4,550
      
4,682
  
Accrued taxes
    
2,455
      
2,176
  
Dividends payable
    
2,955
      
2,950
  
Total current liabilities
    
44,528
      
47,816
  
Long-Term Debt
    
122,104
      
118,515
  
Deferred Credits and Other Noncurrent Liabilities
                
Deferred income taxes
    
57,489
      
56,181
  
Postemployment benefit obligation
    
34,114
      
34,262
  
Other noncurrent liabilities
    
20,998
      
22,258
  
Total deferred credits and other noncurrent liabilities
    
112,601
      
112,701
  
Stockholders' Equity
                
Common stock
    
6,495
      
6,495
  
Additional paid-in capital
    
89,414
      
89,763
  
Retained earnings
    
34,506
      
33,671
  
Treasury stock
    
(12,163
)
    
(12,592
)
Accumulated other comprehensive income
    
5,180
      
5,334
  
Noncontrolling interest
    
973
      
969
  
Total stockholders' equity
    
124,405
      
123,640
  
Total Liabilities and Stockholders' Equity
  
$
403,638
    
$
402,672
  
 
 
 
 
Financial Data
         
AT&T Inc.
Consolidated Statements of Cash Flows
        
Dollars in millions
        
(Unaudited)
   
Three Months Ended
  
   
3/31/2016
    
3/31/2015
  
         
Operating Activities
        
Net income
  
$
3,885
    
$
3,339
  
Adjustments to reconcile net income to
                
  net cash provided by operating activities:
                
    Depreciation and amortization
    
6,563
      
4,578
  
    Undistributed earnings from investments in equity affiliates
    
(13
)
    
-
  
    Provision for uncollectible accounts
    
374
      
285
  
    Deferred income tax expense
    
1,346
      
252
  
    Net gain from sale of investments, net of impairments
    
(44
)
    
(33
)
Changes in operating assets and liabilities:
                
    Accounts receivable
    
627
      
739
  
    Other current assets
    
612
      
408
  
    Accounts payable and accrued liabilities
    
(4,006
)
    
(1,817
)
Retirement benefit funding
    
(140
)
    
(140
)
Other - net
    
(1,304
)
    
(873
)
Total adjustments
    
4,015
      
3,399
  
Net Cash Provided by Operating Activities
    
7,900
      
6,738
  
                 
Investing Activities
                
Construction and capital expenditures:
                
    Capital expenditures
    
(4,451
)
    
(3,848
)
    Interest during construction
    
(218
)
    
(123
)
Acquisitions, net of cash acquired
    
(165
)
    
(19,514
)
Dispositions
    
81
      
8
  
Sales of securities, net
    
445
      
1,890
  
Net Cash Used in Investing Activities
    
(4,308
)
    
(21,587
)
                 
Financing Activities
                
Issuance of long-term debt
    
5,978
      
16,572
  
Repayment of long-term debt
    
(2,296
)
    
(596
)
Issuance of treasury stock
    
89
      
8
  
Dividends paid
    
(2,947
)
    
(2,434
)
Other
    
471
      
(2,860
)
Net Cash Provided by Financing Activities
    
1,295
      
10,690
  
Net increase (decrease) in cash and cash equivalents
    
4,887
      
(4,159
)
Cash and cash equivalents beginning of year
    
5,121
      
8,603
  
Cash and Cash Equivalents End of Period
  
$
10,008
    
$
4,444
  
 
 
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
   
3/31/2016
  
3/31/2015
  
% Chg
Business Solutions Wireless Subscribers
    
75,771
      
66,945
      
13.2
%
Postpaid
    
48,844
      
45,959
      
6.3
%
Reseller
    
64
      
14
      
-
  
Connected Devices
    
26,863
      
20,972
      
28.1
%
                         
Business Solutions Wireless Net Adds
    
1,689
      
1,324
      
27.6
%
Postpaid
    
133
      
297
      
-55.2
%
Reseller
    
(22
)
    
3
      
-
  
Connected Devices
    
1,578
      
1,024
      
54.1
%
                         
Business Wireless Postpaid Churn
    
1.02
%
    
0.90
%
  
12
BP 
                         
Consumer Mobility Subscribers
    
54,674
      
54,827
      
-0.3
%
Postpaid
    
28,294
      
30,216
      
-6.4
%
Prepaid
    
12,171
      
10,037
      
21.3
%
Reseller
    
13,313
      
13,581
      
-2.0
%
Connected Devices
    
896
      
993
      
-9.8
%
                         
Consumer Mobility Net Adds
    
92
      
(106
)
    
-
  
Postpaid
    
(4
)
    
144
      
-
  
Prepaid
    
500
      
98
      
-
  
Reseller
    
(378
)
    
(269
)
    
-40.5
%
Connected Devices
    
(26
)
    
(79
)
    
67.1
%
                         
Consumer Mobility Postpaid Churn
    
1.24
%
    
1.20
%
  
4
BP 
Total Consumer Mobility Churn
    
2.11
%
    
2.04
%
  
7
BP 
                         
Entertainment Group
    
51,748
      
34,175
      
51.4
%
Video Connections
    
25,344
      
5,969
      
-
  
Satellite
    
20,112
      
-
      
-
  
U-verse
    
5,232
      
5,969
      
-12.3
%
                         
Video Net Adds
    
(54
)
    
49
      
-
  
Satellite
    
328
      
-
      
-
  
U-verse
    
(382
)
    
49
      
-
  
                         
Broadband Connections
    
14,291
      
14,537
      
-1.7
%
 IP
    
12,542
      
11,796
      
6.3
%
 DSL
    
1,749
      
2,741
      
-36.2
%
                         
Broadband Net Adds
    
5
      
93
      
-94.6
%
 IP
    
186
      
413
      
-55.0
%
 DSL
    
(181
)
    
(320
)
    
43.4
%
                         
Total Wireline Voice Connections
    
12,113
      
13,669
      
-11.4
%
                         
AT&T International
                        
Mexican Wireless Subscribers and Connections
                        
Subscribers
    
9,213
      
5,728
      
60.8
%
Net Adds
    
529
      
-
      
-
  
Total Churn
    
5.45
%
    
-
      
-
  
                         
Video Subscribers and Connections
                        
Latin America Video Subscribers
    
12,436
      
-
      
-
  
Pan Americana
    
7,094
      
-
      
-
  
Brazil
    
5,342
      
-
      
-
  
                         
Video Subscribers and Connections Net Adds
                        
Latin America Video Subscribers
    
(73
)
    
-
      
-
  
Pan Americana
    
28
      
-
      
-
  
Brazil
    
(101
)
    
-
      
-
  
 
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
   
3/31/2016
  
3/31/2015
  
% Chg
AT&T Total Subscribers and Connections
AT&T Mobility Subscribers
    
130,445
      
121,772
      
7.1
%
Postpaid
    
77,138
      
76,175
      
1.3
%
Prepaid
    
12,171
      
10,037
      
21.3
%
   Branded
    
89,309
      
86,212
      
3.6
%
Reseller
    
13,378
      
13,595
      
-1.6
%
Connected Devices
    
27,758
      
21,965
      
26.4
%
                         
AT&T Mobility Net Adds
    
1,781
      
1,218
      
46.2
%
Postpaid
    
129
      
441
      
-70.7
%
Prepaid
    
500
      
98
      
-
  
   Branded
    
629
      
539
      
16.7
%
Reseller
    
(400
)
    
(266
)
    
-50.4
%
Connected Devices
    
1,552
      
945
      
64.2
%
M&A Activity, Partitioned Customers and Other Adjs.
    
24
      
-
      
-
  
                         
AT&T Mobility Churn
                        
Postpaid Churn
    
1.10
%
    
1.02
%
  
8
BP 
Total Churn
    
1.42
%
    
1.40
%
  
2
BP 
                         
Other
                        
Domestic Licensed POPs (000,000)
    
322
      
321
      
0.3
%
                         
Total Video Subscribers
    
37,808
      
5,993
      
-
  
Domestic
    
25,372
      
5,993
      
-
  
Pan Americana
    
7,094
      
-
      
-
  
Brazil
    
5,342
      
-
      
-
  
                         
Total Video Net Adds
    
(125
)
    
50
      
-
  
Domestic
    
(52
)
    
50
      
-
  
Pan Americana
    
28
      
-
      
-
  
Brazil
    
(101
)
    
-
      
-
  
                         
Total Broadband Connections
    
15,764
      
16,097
      
-2.1
%
  IP
    
13,470
      
12,644
      
6.5
%
  DSL
    
2,294
      
3,453
      
-33.6
%
                         
Broadband Net Adds
    
(14
)
    
69
      
-
  
  IP
    
202
      
439
      
-54.0
%
  DSL
    
(216
)
    
(370
)
    
41.6
%
                         
Total Wireline Voice Connections
    
21,459
      
24,149
      
-11.1
%
                         
Total Wireless Subscribers
    
139,658
      
127,500
      
9.5
%
Domestic Wireless Subscribers
    
130,445
      
121,772
      
7.1
%
Mexican Wireless Subscribers
    
9,213
      
5,728
      
60.8
%
                         
Branded Subscribers
    
98,158
      
91,448
      
7.3
%
Branded Net Adds
    
1,195
      
539
      
-
  
                         
AT&T Inc.
                        
Construction and capital expenditures:
                        
Capital expenditures
  
$
4,451
    
$
3,848
      
15.7
%
Interest during construction
  
$
218
    
$
123
      
77.2
%
Dividends Declared per Share
  
$
0.48
    
$
0.47
      
2.1
%
End of Period Common Shares Outstanding (000,000)
    
6,156
      
5,193
      
18.5
%
Debt Ratio1,2
    
51.2
%
    
51.5
%
  
-30
BP 
Total Employees
    
280,870
      
250,790
      
12.0
%
                         
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.
 
Note: For the end of 1Q16, total switched access lines were 15,975.
   
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
   
3/31/2016
    
3/31/2015
  
% Chg
AT&T Mobility    
Operating Revenues
              
Service
  
$
14,798
  
 
  
$
14,812
      
-0.1
%
Equipment
    
3,156
        
3,374
      
-6.5
%
    Total Operating Revenues
    
17,954
        
18,186
      
-1.3
%
                           
Operating Expenses
                          
Operations and support expenses
    
10,624
        
11,472
      
-7.4
%
Depreciation and amortization
    
2,056
        
2,005
      
2.5
%
    Total Operating Expenses
    
12,680
        
13,477
      
-5.9
%
Operating Income
  
$
5,274
  
 
  
$
4,709
      
12.0
%
                           
 Operating Income Margin
    
29.4
%
 
    
25.9
%
        
 
 
 
Financial Data           
                             
AT&T Inc.          
Segment Supplemental     
Dollars in millions except per share amounts           
                             
                             
For the three months ended March 31, 2016           
   
Revenues
    
Operations and Support Expenses
    
EBITDA
    
Depreciation and Amortization
    
Operating Income (Loss)
    
Equity in Net Income of Affiliates
    
Segment Contribution
  
Business Solutions
  
$
17,609
    
$
10,802
    
$
6,807
    
$
2,508
    
$
4,299
    
$
-
    
$
4,299
  
Entertainment Group
    
12,658
      
9,578
      
3,080
      
1,488
      
1,592
      
3
      
1,595
  
Consumer Mobility
    
8,328
      
4,912
      
3,416
      
922
      
2,494
      
-
      
2,494
  
International
    
1,667
      
1,588
      
79
      
277
      
(198
)
    
14
      
(184
)
Segment Total
  
$
40,262
    
$
26,880
    
$
13,382
    
$
5,195
    
$
8,187
    
$
17
    
$
8,204
  
Corporate and Other
    
273
      
377
      
(104
)
    
17
      
(121
)
                
Acquisition-related items
    
-
      
295
      
(295
)
    
1,351
      
(1,646
)
                
Certain Significant items
    
-
      
(711
)
    
711
      
-
      
711
                  
AT&T Inc.
  
$
40,535
    
$
26,841
    
$
13,694
    
$
6,563
    
$
7,131
                  
                                                         
For the three months ended March 31, 2015                         
   
Revenues
    
Operations and Support Expenses
    
EBITDA
    
Depreciation and Amortization
    
Operating Income (Loss)
    
Equity in Net Income of Affiliates
    
Segment Contribution
  
Business Solutions
  
$
17,557
    
$
11,073
    
$
6,484
    
$
2,342
    
$
4,142
    
$
-
    
$
4,142
  
Entertainment Group
    
5,660
      
4,859
      
801
      
1,065
      
(264
)
    
(6
)
    
(270
)
Consumer Mobility
    
8,778
      
5,541
      
3,237
      
1,002
      
2,235
      
-
      
2,235
  
International
    
236
      
218
      
18
      
28
      
(10
)
    
-
      
(10
)
Segment Total
  
$
32,231
    
$
21,691
    
$
10,540
    
$
4,437
    
$
6,103
    
$
(6
)
  
$
6,097
  
Corporate and Other
    
345
      
234
      
111
      
20
      
91
                  
Acquisition-related items
    
-
      
299
      
(299
)
    
121
      
(420
)
                
Certain Significant items
    
-
      
217
      
(217
)
    
-
      
(217
)
                
AT&T Inc.
  
$
32,576
    
$
22,441
    
$
10,135
    
$
4,578
    
$
5,557
                  
 

AT&T INC. Reports