EX-99.2 4 ex99_2.htm AT&T SELECTED FINANCIAL STATEMENTS AND OPERATING DATA ex99_2.htm
Financial Data
                  
                   
AT&T Inc.
                  
Consolidated Statements of Income
                  
Dollars in millions except per share amounts
                  
Unaudited
  
Three Months Ended
   
3/31/2009
    
3/31/2008
    
% Ch
 g 
Operating Revenues
                  
  Wireless service
   $ 11,646     $ 10,605       9.8 %
  Voice
     8,506       9,693       -12.2 %
  Data
     6,250       5,972       4.7 %
  Directory
     1,249       1,398       -10.7 %
  Other
     2,920       3,076       -5.1 %
    Total Operating Revenues
     30,571       30,744       -0.6 %
                         
Operating Expenses
                        
  Cost of services and sales (exclusive of
                        
     depreciation and amortization shown separately below)
     12,242       11,995       2.1 %
  Selling, general and administrative
     7,706       7,866       -2.0 %
  Depreciation and amortization
     4,886       4,903       -0.3 %
    Total Operating Expenses
     24,834       24,764       0.3 %
Operating Income
     5,737       5,980       -4.1 %
Interest Expense
     849       865       -1.8 %
Equity in Net Income of Affiliates
     137       243       -43.6 %
Other Income (Expense) - Net
     (15 )     91       -  
Income Before Income Taxes
     5,010       5,449       -8.1 %
Income Taxes
     1,809       1,930       -6.3 %
Net Income
     3,201       3,519       -9.0 %
Noncontrolling Interest
     (75 )     (58 )     -29.3 %
Net Income Attributable to AT&T
   $ 3,126     $ 3,461       -9.7 %
                         
                         
Basic Earnings Per Share
   $ 0.53     $ 0.58       -8.6 %
Weighted Average Common
                        
  Shares Outstanding (000,000)
     5,896       5,997       -1.7 %
                         
Diluted Earnings Per Share
   $ 0.53     $ 0.57       -7.0 %
Weighted Average Common
                        
  Shares Outstanding with Dilution (000,000)
     5,896       6,033       -2.3 %
                         

 
 
 

Financial Data
                  
                   
AT&T Inc.
                  
Statements of Segment Income
                  
Dollars in millions
                  
Unaudited
                  
   
Three Months Ended
                   
Wireless
  
3/31/2009
    
3/31/2008
    
% Ch
 g 
Segment Operating Revenues
                  
  Service
   $ 11,668     $ 10,645       9.6 %
  Equipment
     1,192       1,180       1.0 %
    Total Segment Operating Revenues
     12,860       11,825       8.8 %
                         
Segment Operating Expenses
                        
  Operations and Support
     8,085       7,389       9.4 %
  Depreciation and amortization
     1,434       1,480       -3.1 %
    Total Segment Operating Expenses
     9,519       8,869       7.3 %
Segment Operating Income
     3,341       2,956       13.0 %
Equity in Net Income of Affiliates
     -       2       -  
Segment Income
   $ 3,341     $ 2,958       12.9 %
                         
Segment Operating Income Margin
     26.0 %     25.0 %        
                         
                         
Wireline
                        
Segment Operating Revenues
                        
  Voice
   $ 8,708     $ 9,919       -12.2 %
  Data
     6,536       6,205       5.3 %
  Other
     1,434       1,500       -4.4 %
    Total Segment Operating Revenues
     16,678       17,624       -5.4 %
                         
Segment Operating Expenses
                        
  Operations and Support
     11,297       11,493       -1.7 %
  Depreciation and amortization
     3,240       3,181       1.9 %
    Total Segment Operating Expenses
     14,537       14,674       -0.9 %
Segment Operating Income
     2,141       2,950       -27.4 %
Equity in Net Income of Affiliates
     4       6       -33.3 %
Segment Income
   $ 2,145     $ 2,956       -27.4 %
                         
Segment Operating Income Margin
     12.8 %     16.7 %        
                         
Advertising Solutions
                        
Segment Operating Revenues
   $ 1,269     $ 1,417       -10.4 %
                         
Segment Operating Expenses
                        
  Operations and Support
     749       787       -4.8 %
  Depreciation and amortization
     176       212       -17.0 %
    Total Segment Operating Expenses
     925       999       -7.4 %
Segment Income
   $ 344     $ 418       -17.7 %
                         
Segment Income Margin
     27.1 %     29.5 %        
                         
Other
                        
Segment Operating Revenues
   $ 437     $ 544       -19.7 %
Segment Operating Expenses
     526       888       -40.8 %
Segment Operating Income (Loss)
     (89 )     (344 )     -74.1 %
Equity in Net Income of Affiliates
     133       235       -43.4 %
Segment Income (Loss)
   $ 44     $ (109 )     -  

 
 
 
 
Financial Data
            
             
AT&T Inc.
            
Consolidated Balance Sheets
            
Dollars in millions except per share amounts
            
   
3/31/09
    
12/31/08
  
   
Unaudited
        
             
Assets
            
Current Assets
            
 Cash and cash equivalents
   $ 3,812     $ 1,792  
 Accounts receivable - net of allowances for
                
     uncollectibles of $1,271 and $1,270
     14,965       16,047  
 Prepaid expenses
     1,704       1,538  
 Deferred income taxes
     957       1,014  
 Other current assets
     2,083       2,165  
  Total current assets
     23,521       22,556  
Property, Plant and Equipment - Net
     98,339       99,088  
Goodwill
     71,694       71,829  
Licenses
     47,461       47,306  
Customer Lists and Relationships - Net
     9,605       10,582  
Other Intangible Assets - Net
     5,797       5,824  
Investments in Equity Affiliates
     2,413       2,332  
Other Assets
     5,528       5,728  
   Total Assets
   $ 264,358     $ 265,245  
                 
Liabilities and Stockholders' Equity
                
Current Liabilities
                
 Debt maturing within one year
   $ 10,790     $ 14,119  
 Accounts payable and accrued liabilities
     17,359       20,032  
 Advanced billing and customer deposits
     4,065       3,849  
 Accrued taxes
     2,399       1,874  
 Dividends payable
     2,419       2,416  
  Total current liabilities
     37,032       42,290  
Long-Term Debt
     63,560       60,872  
Deferred Credits and Other Noncurrent Liabilities
                
 Deferred income taxes
     19,376       19,196  
 Postemployment benefit obligation
     32,032       31,930  
 Other noncurrent liabilities
     14,663       14,207  
  Total deferred credits and other noncurrent liabilities
     66,071       65,333  
Stockholders' Equity
                
 Common shares issued ($1 par value)
     6,495       6,495  
 Capital in excess of par value
     91,638       91,728  
 Retained earnings
     37,296       36,591  
 Treasury shares (at cost)
     (21,283 )     (21,410 )
 Noncontrolling interest
     404       403  
 Accumulated other comprehensive income (loss)
     (16,855 )     (17,057 )
  Total stockholders' equity
     97,695       96,750  
   Total Liabilities and Stockholders' Equity
   $ 264,358     $ 265,245  

 
 
 


Financial Data
            
             
AT&T Inc.
            
Consolidated Statements of Cash Flows
            
Dollars in millions, increase (decrease) in cash and cash equivalents
            
Unaudited
  
        Three months ended
  
   
         March 31,
  
   
         2009
    
        2008
  
Operating Activities
            
Net income
   $ 3,126     $ 3,461  
Adjustments to reconcile net income to net cash provided by operating activities:
                
  Depreciation and amortization
     4,886       4,903  
  Undistributed earnings from investments in equity affiliates
     (137 )     (220 )
  Provision for uncollectible accounts
     509       480  
  Deferred income tax expense (benefit)
     126       569  
  Net (gain) loss from impairment and sale of investments
     82       (46 )
  Changes in operating assets and liabilities:
                
    Accounts receivable
     573       (150 )
    Other current assets
     (108 )     159  
    Accounts payable and accrued liabilities
     (1,347 )     (4,654 )
    Stock-based compensation tax benefit
     -       (7 )
  Other - net
     205       462  
Total adjustments
     4,789       1,496  
Net Cash Provided by Operating Activities
     7,915       4,957  
                 
Investing Activities
                
Construction and capital expenditures
                
  Capital expenditures
     (3,173 )     (4,178 )
  Interest during construction
     (185 )     (70 )
Acquisitions, net of cash acquired
     -       (3,662 )
Dispositions
     181       47  
Proceeds from sale of securities, net of investments
     (10 )     131  
Sale of other investments
     -       -  
Other
     30       33  
Net Cash Used in Investing Activities
     (3,157 )     (7,699 )
                 
Financing Activities
                
Net change in short-term borrowings with original maturities of three months or less
     (3,909 )     5,786  
Issuance of long-term debt
     5,450       3,972  
Repayment of long-term debt
     (1,261 )     (613 )
Purchase of treasury shares
     -       (4,071 )
Issuance of treasury shares
     1       103  
Dividends paid
     (2,416 )     (2,422 )
Stock-based compensation tax benefit
     -       7  
Other
     (603 )     (27 )
Net Cash Used in Financing Activities
     (2,738 )     2,735  
Net increase (decrease) in cash and cash equivalents
     2,020       (7 )
Cash and cash equivalents beginning of year
     1,792       1,970  
Cash and Cash Equivalents End of Period
   $ 3,812     $ 1,963  

 
 
 

Financial Data
                  
                   
AT&T Inc.
                  
Supplementary Operating and Financial Data
                  
Dollars in millions except per share amounts
                  
Unaudited
  
Three Months Ended
   
3/31/2009
    
3/31/2008
    
% Ch
 g 
                   
Wireless
                  
Wireless Customers (000)
     78,232       71,367       9.6 %
     Net Customer Additions (000)
     1,223       1,295       -5.6 %
     M&A Activity, Partitioned Customers and Other Adjs. (000)
     -       20          
Postpaid Customers (000)
     60,957       56,016       8.8 %
     Net Postpaid Customer Additions (000)
     875       705       24.1 %
     Postpaid Churn
     1.2 %     1.2 %  
0 B
P 
Licensed POPs (000,000)
     306       304       0.7 %
                         
In-Region Wireline 1
                        
Total Consumer Revenue Connections (000)
                        
Retail Consumer Voice Connections 2
     26,780       30,316       -11.7 %
Retail Consumer Additional Voice Connections 2
     3,189       3,866       -17.5 %
Consumer  Wired Broadband Connections 3
     13,344       12,547       6.4 %
Video Connections: 4
                        
Satellite Connections
     2,205       2,232       -1.2 %
U-verse Video Connections
     1,329       379          
               Total Consumer Revenue Connections (000)
     46,847       49,340       -5.1 %
                         
         Net Consumer Revenue Connection Changes (000)
     (196 )     (98 )        
                         
Broadband and Video
                        
Total Broadband Connections (000) 5
     16,736       15,419       8.5 %
Net Broadband Connection Changes (000) 5
     471       617       -23.7 %
Total Video Connections (000) 4
     3,534       2,611       35.4 %
Net Video Connection Changes (000) 4
     299       264       13.3 %
                         
AT&T Inc.
                        
Construction and capital expenditures
                        
  Capital Expenditures
   $ 3,173     $ 4,178       -24.1 %
  Interest during construction
   $ 185     $ 70          
Dividends Declared per Share
   $ 0.4100     $ 0.4000       2.5 %
End of Period Common Shares Outstanding (000,000)
     5,900       5,939       -0.7 %
Debt Ratio 6
     43.2%       39.5%    
370 B
 P 
Total Employees
     294,600       310,070       -5.0 %
                         
                         
1
   In-region wireline represents access lines served by AT&T's incumbent local exchange companies.
2
   Includes consumer U-verse Voice over IP connections.
3
   Wireline consumer broadband connections include DSL lines, U-verse high speed Internet access and satellite broadband.
4
    Video connections include sales under agency agreements with EchoStar and DirecTV customers and U-verse connections.
5
   Total broadband connections include DSL lines, U-verse high speed Internet access, satellite broadband and 3G LaptopConnect cards.
6
   Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
7
   Prior year amounts restated to conform to current period reporting methodology.
 Note: For the end of 1Q09, total switched access lines were 53,992, retail business switched access lines totaled 21,364, and wholesale and coin switched access lines totaled 3,053.
 
 
 
 
Non-GAAP Wireless Reconciliations
                              
Wireless Segment OIBDA
                              
AT&T Inc.
                              
Dollars in Millions
                              
Unaudited
                              
   
Three Months Ended
   
3/31/2008
    
6/30/2008
    
9/30/2008
    
12/31/2008
    
3/31/2009
  
                               
Service Revenues
   $ 10,645     $ 10,951     $ 11,273     $ 11,541     $ 11,668  
Equipment Revenues
     1,180       1,082       1,345       1,318       1,192  
Total Operating Revenues
     11,825       12,033       12,618       12,859       12,860  
                                         
Operating Expenses
                                        
Operations and Support
     7,389       7,523       8,838       8,731       8,085  
Depreciation and Amortization
     1,480       1,446       1,401       1,443       1,434  
Total Operating Expenses
     8,869       8,969       10,239       10,174       9,519  
                                         
Operating Income
     2,956       3,064       2,379       2,685       3,341  
                                         
Plus: Depreciation and Amortization
     1,480       1,446       1,401       1,443       1,434  
OIBDA
     4,436       4,510       3,780       4,128       4,775  
OIBDA as a % of Service Revenue
     41.7 %     41.2 %     33.5 %     35.8 %     40.9 %
                                         
 
OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from segment operating income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
 
 
 
Non-GAAP Financial Reconciliations
        
Free Cash Flow
        
AT&T Inc.
        
Dollars in Millions
        
Unaudited
        
 
    
Three Months Ended
March 31, 2009
         
Net cash provided by operating activities
   $
7,915
  
         
Less: Construction and capital expenditures
    
                 (3,358)
  
         
Free Cash Flow
   $
4,557
  
 
Free cash flow is defined as cash from operations minus capital expenditures. 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.