Attached files
| file | filename |
|---|---|
| EX-99.1 - UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS - AT&T INC. | ex99_1.htm |
| 8-K/A - AT&T INC. PRO FORMA FINANCIAL STATEMENTS - AT&T INC. | proforma8ka_twx.htm |
Exhibit 99.2
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Adjusted Operating Income, Adjusted Operating Income Margin,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA Service Margin
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||||||||||||||||
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Dollars in millions
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Three Months Ended
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Six Months Ended | ||||||||||||||
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June 30,
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June 30,
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|||||||||||||||
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2018
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2017
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2018
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2017
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|||||||||||||
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Operating Income
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$
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6,466
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$
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6,526
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$
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12,667
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$
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12,882
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||||||||
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Adjustments to Operating Expenses
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1,750
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1,546
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3,059
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2,837
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||||||||||||
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Adjusted Operating Income
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8,216
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8,072
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15,726
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15,719
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||||||||||||
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EBITDA
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12,844
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12,673
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25,039
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25,156
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||||||||||||
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Adjustments to Operations and Support Expenses
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472
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376
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719
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465
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||||||||||||
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Adjusted EBITDA
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13,316
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13,049
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25,758
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25,621
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||||||||||||
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WarnerMedia Operating Income
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1,236
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3,047
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||||||||||||||
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Additions:
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||||||||||||||||
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Depreciation and amortization
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168
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339
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||||||||||||||
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Merger costs
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548
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694
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||||||||||||||
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WarnerMedia Adjusted EBITDA
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1,952
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4,080
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||||||||||||||
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WarnerMedia segment income (post acquisition)
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(451
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)
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(451
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)
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||||||||||||
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WarnerMedia segment depreciation and
amortization (post acquisition)
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(30
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)
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(30
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)
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||||||||||||
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WarnerMedia merger costs (post acquisition)
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(159
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)
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(159
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)
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||||||||||||
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Film and television cost amortization (release prior to June 14)
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612
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1,103
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||||||||||||||
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Pro Forma Adjusted EBITDA 1
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15,240
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30,301
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||||||||||||||
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Total Operating Revenues
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38,986
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39,837
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77,024
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79,202
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||||||||||||
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Service Revenues
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33,773
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36,538
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67,419
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72,994
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||||||||||||
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Operating Income Margin
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16.6
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%
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16.4
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%
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16.4
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%
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16.3
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%
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||||||||
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Adjusted Operating Income Margin
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21.1
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%
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20.3
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%
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20.4
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%
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19.8
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%
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||||||||
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Adjusted EBITDA Margin
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34.2
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%
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32.8
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%
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33.4
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%
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32.3
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%
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||||||||
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Adjusted EBITDA Service Margin
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39.4
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%
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35.7
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%
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38.2
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%
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35.1
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%
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||||||||
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Supplemental Results under Historical Accounting Method
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||||||||||||||||
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Operating Income
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5,903
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|||||||||||||||
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Adjustments to Operating Expenses
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1,750
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|||||||||||||||
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Adjusted Supplemental Operating Income
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7,653
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|||||||||||||||
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EBITDA
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12,281
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|||||||||||||||
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Adjustments to Operations and Support Expenses
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472
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|||||||||||||||
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Adjusted Supplemental EBITDA
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12,753
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|||||||||||||||
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Supplemental Operating Revenues
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39,909
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|||||||||||||||
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Adjusted Supplemental Operating Income Margin
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19.2
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%
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||||||||||||||
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Adjusted Supplemental EBITDA margin
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32.0
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%
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||||||||||||||
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1 Pro Forma Adjusted EBITDA reflects the combined results of operations of the combined company based on the historical financial statements of AT&T and Time Warner, after giving effect to the merger and certain adjustments, and is intended to reflect the impact of the Time Warner acquisition on AT&T. WarnerMedia operating income, depreciation and amortization expense and merger costs are provided on Item 7.01 Form 8-K filed by AT&T on July 24, 2018. Pro Forma adjustments are to (1) remove the duplication of operating results for the 16-day period in which AT&T also reported Time Warner results and (2) to recognize the purchase accounting classification of released content as intangible assets and accordingly reclassify associated content amortization from operating expense to amortization expense. Intercompany revenue and expense eliminations net and do not impact EBITDA.
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Pro Forma Net Debt to Adjusted EBITDA
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||||||||||||
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Dollars in millions
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||||||||||||
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Three Months Ended
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||||||||||||
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Mar. 31,
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Jun. 30,
|
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||||||||||
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2018
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2018
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YTD 2018 | ||||||||||
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Pro Forma Adjusted EBITDA
|
$
|
15,061
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$
|
15,240
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$
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30,301
|
||||||
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Add back severance
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(51
|
)
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(133
|
)
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(184
|
)
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||||||
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Net Debt Pro Forma Adjusted EBITDA
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15,010
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15,107
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30,117
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|||||||||
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Annualized Pro Forma Adjusted EBITDA
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60,234
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|||||||||||
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End-of-period current debt
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21,672
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|||||||||||
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End-of-period long-term debt
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168,495
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|||||||||||
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Total End-of-Period Debt
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190,167
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|||||||||||
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Less: Cash and Cash Equivalents
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13,523
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|||||||||||
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Net Debt Balance
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176,644
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|||||||||||
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Pro Forma Annualized Net Debt to Adjusted EBITDA Ratio
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2.93
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