Delaware
|
1-8610
|
43-1301883
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
208 S. Akard St., Dallas, Texas
|
75202
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
(Former Name or Former Address, if Changed Since Last Report)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
99.1
|
Press release dated April 22, 2014 reporting financial results for the first quarter ended March 31, 2014.
|
99.2
|
AT&T Inc. selected financial statements and operating data.
|
|
99.3
|
Discussion of EBITDA, Free Cash Flow, Free Cash Flow Yield, Free Cash Flow after Dividends and Adjusting Items
|
AT&T INC.
|
|
Date: April 22, 2014
|
By: /s/ Paul W. Stephens
Paul W. Stephens
Senior Vice President and Controller
|
·
|
Best Revenue Growth in More than Two Years
|
·
|
Best First-Quarter Postpaid Net Adds in Five Years
|
·
|
Best Wireline Consumer Revenue Growth since U-verse Launch in 2006
|
§
|
$0.70 diluted EPS compared to $0.67 diluted EPS in the year-ago quarter. Excluding significant items, EPS was up 10.9 percent, $0.71 versus $0.64
|
§
|
First-quarter consolidated revenues of $32.5 billion, up 3.6 percent or more than $1 billion versus the year-earlier period, the company’s strongest growth in more than two years
|
§
|
Outlook raised for full-year revenue growth, now expected to be 4 percent or greater
|
§
|
Strong cash from operations of $8.8 billion with $3.0 billion in free cash flow
|
§
|
More than 2 million new wireless and wireline high speed broadband connections added in the first quarter
|
§
|
Wireless revenues up 7.0 percent versus the year-ago quarter
|
§
|
Wireless operating income margin of 28.3 percent and EBITDA service margin of 45.4 percent
|
§
|
Wireless operating income of $5.1 billion, up 8.1 percent; wireless EBITDA of $7.0 billion, up 7.3 percent
|
§
|
Postpaid phone-only ARPU up 0.4 percent; postpaid phone-only ARPU with AT&T NextSM monthly billings up 2.0 percent
|
§
|
Postpaid net adds of 625,000, best first-quarter net adds in five years; total net adds of more than 1 million
|
§
|
More than one-half million branded smartphone net adds, both postpaid and prepaid; nearly 60 million total branded smartphone subscribers
|
§
|
313,000 branded tablet net adds
|
§
|
1.1 million new postpaid smartphones added (both upgrades and new subscribers); smartphones account for 92 percent of postpaid phone sales
|
§
|
Postpaid churn of 1.07 percent, down sequentially and up slightly year over year
|
§
|
Mobile Share® accounts more than tripled year over year to reach 11.3 million; driving higher data usage with 46 percent of accounts on data plans of 10 gigabytes or higher
|
§
|
Wireless data billings up more than 15 percent versus the year-earlier quarter
|
§
|
More than 40 percent or 2.9 million of all smartphone gross adds and upgrades on AT&T Next; without 1.1 million accelerated upgrades, Next take rate about 35 percent
|
§
|
Best wireline consumer revenue growth since the introduction of U-verse® in 2006, up 4.3 percent versus the year-earlier period; helps drive year-over-year wireline service revenue growth
|
§
|
Total U-verse revenues, including business, were up 29 percent year over year; now a nearly $14 billion annualized revenue stream
|
§
|
11.3 million total U-verse subscribers (TV and high speed Internet) in service:
|
o
|
634,000 high speed Internet subscriber net adds including 64,000 in business customer segment; U-verse broadband two-thirds of broadband base; total broadband net adds of 78,000
|
o
|
201,000 U-verse TV subscribers added
|
§
|
Strategic business services growth of 16.1 percent year over year, now more than 26 percent of wireline business revenues
|
·
|
Consolidated revenue growth of 4 percent or greater;
|
·
|
Stable consolidated margins which include Leap operational pressure;
|
·
|
Adjusted earnings per share growth in the mid-single digit range including Leap operational pressure;
|
·
|
Capital expenditures remaining in the $21 billion range;
|
·
|
Free cash flow in the $11 billion range, which anticipates strong AT&T Next take rates and Leap costs;
|
·
|
Continued investment in business transformation and growth.
|
Web Site Links:
|
Related Media Kits:
|
AT&T News
AT&T Investor Relations
2014 AT&T Events Calendar
|
AT&T Investor Relations Events and Presentations
AT&T 2013 Annual Report
|
Related Releases:
|
Related Fact Sheets:
|
AT&T Approves New 300 Million Share Repurchase Authorization
AT&T Declares Quarterly Dividend Payable May 1, 2014
AT&T Completes Acquisition of Leap Wireless
|
AT&T Historical Dividend Data
4Q13 Investor Briefing
|
Financial Data
|
||||||||||||
AT&T Inc.
|
||||||||||||
Consolidated Statements of Income
|
||||||||||||
Dollars in millions except per share amounts
|
||||||||||||
Unaudited
|
Three Months Ended
|
|||||||||||
3/31/2014
|
3/31/2013
|
% Chg
|
||||||||||
Operating Revenues
|
$ | 32,476 | $ | 31,356 | 3.6 | % | ||||||
Operating Expenses
|
||||||||||||
Cost of services and sales (exclusive of depreciation and
amortization shown separately below)
|
13,321 | 12,554 | 6.1 | % | ||||||||
Selling, general and administrative
|
8,260 | 8,333 | -0.9 | % | ||||||||
Depreciation and amortization
|
4,617 | 4,529 | 1.9 | % | ||||||||
Total Operating Expenses
|
26,198 | 25,416 | 3.1 | % | ||||||||
Operating Income
|
6,278 | 5,940 | 5.7 | % | ||||||||
Interest Expense
|
860 | 827 | 4.0 | % | ||||||||
Equity in Net Income of Affiliates
|
88 | 185 | -52.4 | % | ||||||||
Other Income (Expense) - Net
|
145 | 32 | - | |||||||||
Income Before Income Taxes
|
5,651 | 5,330 | 6.0 | % | ||||||||
Income Tax Expense
|
1,917 | 1,557 | 23.1 | % | ||||||||
Net Income
|
3,734 | 3,773 | -1.0 | % | ||||||||
Less: Net Income Attributable to Noncontrolling Interest
|
(82 | ) | (73 | ) | -12.3 | % | ||||||
Net Income Attributable to AT&T
|
$ | 3,652 | $ | 3,700 | -1.3 | % | ||||||
Basic Earnings Per Share Attributable to AT&T
|
$ | 0.70 | $ | 0.67 | 4.5 | % | ||||||
Weighted Average Common
Shares Outstanding (000,000)
|
5,222 | 5,513 | -5.3 | % | ||||||||
Diluted Earnings Per Share Attributable to AT&T
|
$ | 0.70 | $ | 0.67 | 4.5 | % | ||||||
Weighted Average Common
Shares Outstanding with Dilution (000,000)
|
5,238 | 5,530 | -5.3 | % | ||||||||
Financial Data
|
||||||||||||
AT&T Inc.
|
||||||||||||
Statements of Segment Income
|
||||||||||||
Dollars in millions
|
||||||||||||
Unaudited
|
||||||||||||
Three Months Ended
|
||||||||||||
Wireless
|
3/31/2014
|
3/31/2013
|
% Chg
|
|||||||||
Segment Operating Revenues
|
||||||||||||
Service
|
$ | 15,387 | $ | 15,062 | 2.2 | % | ||||||
Equipment
|
2,479 | 1,629 | 52.2 | % | ||||||||
Total Segment Operating Revenues
|
17,866 | 16,691 | 7.0 | % | ||||||||
Segment Operating Expenses
|
||||||||||||
Operations and support
|
10,882 | 10,180 | 6.9 | % | ||||||||
Depreciation and amortization
|
1,931 | 1,835 | 5.2 | % | ||||||||
Total Segment Operating Expenses
|
12,813 | 12,015 | 6.6 | % | ||||||||
Segment Operating Income
|
5,053 | 4,676 | 8.1 | % | ||||||||
Equity in Net Income (Loss) of Affiliates
|
(20 | ) | (18 | ) | -11.1 | % | ||||||
Segment Income
|
$ | 5,033 | $ | 4,658 | 8.1 | % | ||||||
Segment Operating Income Margin
|
28.3 | % | 28.0 | % | ||||||||
Wireline
|
||||||||||||
Segment Operating Revenues
|
||||||||||||
Service
|
$ | 14,389 | $ | 14,381 | 0.1 | % | ||||||
Equipment
|
212 | 274 | -22.6 | % | ||||||||
Total Segment Operating Revenues
|
14,601 | 14,655 | -0.4 | % | ||||||||
Segment Operating Expenses
|
||||||||||||
Operations and support
|
10,457 | 10,335 | 1.2 | % | ||||||||
Depreciation and amortization
|
2,684 | 2,688 | -0.1 | % | ||||||||
Total Segment Operating Expenses
|
13,141 | 13,023 | 0.9 | % | ||||||||
Segment Operating Income
|
1,460 | 1,632 | -10.5 | % | ||||||||
Equity in Net Income of Affiliates
|
1 | 1 | - | |||||||||
Segment Income
|
$ | 1,461 | $ | 1,633 | -10.5 | % | ||||||
Segment Operating Income Margin
|
10.0 | % | 11.1 | % |
Financial Data
|
|||||||
AT&T Inc.
|
|||||||
Consolidated Balance Sheets
|
|||||||
Dollars in millions
|
|||||||
3/31/2014
|
12/31/2013
|
||||||
Unaudited
|
|||||||
Assets
|
|||||||
Current Assets
|
|||||||
Cash and cash equivalents
|
$ | 3,611 | $ | 3,339 | |||
Accounts receivable - net of allowances for doubtful accounts of $483 and $483
|
13,120 | 12,918 | |||||
Prepaid expenses
|
1,000 | 960 | |||||
Deferred income taxes
|
1,171 | 1,199 | |||||
Other current assets
|
5,187 | 4,780 | |||||
Total current assets
|
24,089 | 23,196 | |||||
Property, Plant and Equipment - Net
|
112,809 | 110,968 | |||||
Goodwill
|
69,720 | 69,273 | |||||
Licenses
|
59,584 | 56,433 | |||||
Other Intangible Assets - Net
|
6,515 | 5,779 | |||||
Investments in Equity Affiliates
|
3,613 | 3,860 | |||||
Other Assets
|
9,010 | 8,278 | |||||
Total Assets
|
$ | 285,340 | $ | 277,787 | |||
Liabilities and Stockholders' Equity
|
|||||||
Current Liabilities
|
|||||||
Debt maturing within one year
|
$ | 8,301 | $ | 5,498 | |||
Accounts payable and accrued liabilities
|
22,234 | 21,107 | |||||
Advanced billing and customer deposits
|
4,121 | 4,212 | |||||
Accrued taxes
|
2,784 | 1,774 | |||||
Dividends payable
|
2,390 | 2,404 | |||||
Total current liabilities
|
39,830 | 34,995 | |||||
Long-Term Debt
|
71,575 | 69,290 | |||||
Deferred Credits and Other Noncurrent Liabilities
|
|||||||
Deferred income taxes
|
36,448 | 36,308 | |||||
Postemployment benefit obligation
|
30,029 | 29,946 | |||||
Other noncurrent liabilities
|
16,089 | 15,766 | |||||
Total deferred credits and other noncurrent liabilities
|
82,566 | 82,020 | |||||
Stockholders' Equity
|
|||||||
Common stock
|
6,495 | 6,495 | |||||
Additional paid-in capital
|
91,027 | 91,091 | |||||
Retained earnings
|
32,402 | 31,141 | |||||
Treasury stock
|
(46,684 | ) | (45,619 | ) | |||
Accumulated other comprehensive income
|
7,666 | 7,880 | |||||
Noncontrolling interest
|
463 | 494 | |||||
Total stockholders' equity
|
91,369 | 91,482 | |||||
Total Liabilities and Stockholders' Equity
|
$ | 285,340 | $ | 277,787 |
Financial Data
|
|||||||
|
|||||||
AT&T Inc.
|
|||||||
Consolidated Statements of Cash Flows
|
|||||||
Dollars in millions
|
|||||||
Unaudited
|
Three months ended March 31,
|
||||||
2014
|
2013
|
||||||
Operating Activities
|
|||||||
Net income
|
$ | 3,734 | $ | 3,773 | |||
Adjustments to reconcile net income to
|
|||||||
net cash provided by operating activities:
|
|||||||
Depreciation and amortization
|
4,617 | 4,529 | |||||
Undistributed earnings from investments in equity affiliates
|
17 | (185 | ) | ||||
Provision for uncollectible accounts
|
241 | 262 | |||||
Deferred income tax expense
|
578 | 433 | |||||
Net (gain) loss from sale of investments, net of impairments
|
(122 | ) | (11 | ) | |||
Changes in operating assets and liabilities:
|
|||||||
Accounts receivable
|
(498 | ) | 295 | ||||
Other current assets
|
(340 | ) | 864 | ||||
Accounts payable and accrued liabilities
|
1,025 | (1,675 | ) | ||||
Retirement benefit funding
|
(140 | ) | - | ||||
Other - net
|
(313 | ) | (86 | ) | |||
Total adjustments
|
5,065 | 4,426 | |||||
Net Cash Provided by Operating Activities
|
8,799 | 8,199 | |||||
Investing Activities
|
|||||||
Construction and capital expenditures:
|
|||||||
Capital expenditures
|
(5,716 | ) | (4,252 | ) | |||
Interest during construction
|
(55 | ) | (66 | ) | |||
Acquisitions, net of cash acquired
|
(662 | ) | (1,045 | ) | |||
Dispositions
|
351 | 5 | |||||
Other
|
- | 1 | |||||
Net Cash Used in Investing Activities
|
(6,082 | ) | (5,357 | ) | |||
Financing Activities
|
|||||||
Net change in short-term borrowings with
|
|||||||
original maturities of three months or less
|
(17 | ) | 274 | ||||
Issuance of other short-term borrowings
|
- | 1,474 | |||||
Issuance of long-term debt
|
2,987 | 4,875 | |||||
Repayment of long-term debt
|
(1,867 | ) | (1,791 | ) | |||
Purchase of treasury stock
|
(1,237 | ) | (5,911 | ) | |||
Issuance of treasury stock
|
13 | 56 | |||||
Dividends paid
|
(2,398 | ) | (2,502 | ) | |||
Other
|
74 | (310 | ) | ||||
Net Cash Used in Financing Activities
|
(2,445 | ) | (3,835 | ) | |||
Net increase (decrease) in cash and cash equivalents
|
272 | (993 | ) | ||||
Cash and cash equivalents beginning of year
|
3,339 | 4,868 | |||||
Cash and Cash Equivalents End of Period
|
$ | 3,611 | $ | 3,875 |
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
|
||||||||||||
3/31/2014
|
3/31/2013
|
% Chg
|
|||||||||||
Wireless
|
|||||||||||||
Subscribers and Connections
|
|||||||||||||
Total
|
116,014 | 107,251 | 8.2 | % | |||||||||
Postpaid
|
73,291 | 70,749 | 3.6 | % | |||||||||
Prepaid
|
11,812 | 7,104 | 66.3 | % | |||||||||
Reseller
|
13,886 | 14,702 | -5.6 | % | |||||||||
Connected Devices
|
17,025 | 14,696 | 15.8 | % | |||||||||
Wireless Net Adds
|
|||||||||||||
Total
|
1,062 | 291 | - | ||||||||||
Postpaid
|
625 | 296 | - | ||||||||||
Prepaid
|
(50 | ) | (184 | ) | 72.8 | % | |||||||
Reseller
|
(206 | ) | (252 | ) | 18.3 | % | |||||||
Connected Devices
|
693 | 431 | 60.8 | % | |||||||||
M&A Activity, Partitioned Customers and Other Adjs.
|
4,576 | 3 | - | ||||||||||
Wireless Churn
|
|||||||||||||
Postpaid Churn
|
1.07 | % | 1.04 | % |
3 BP
|
||||||||
Total Churn
|
1.39 | % | 1.38 | % |
1 BP
|
||||||||
Other
|
|||||||||||||
Licensed POPs (000,000)
|
321 | 317 | 1.3 | % | |||||||||
Wireline
|
|||||||||||||
Voice
|
|||||||||||||
Total Wireline Voice Connections
|
27,716 | 31,163 | -11.1 | % | |||||||||
Net Change
|
(773 | ) | (1,021 | ) | 24.3 | % | |||||||
Broadband
|
|||||||||||||
Total Wireline Broadband Connections
|
16,503 | 16,514 | -0.1 | % | |||||||||
Net Change
|
78 | 124 | -37.1 | % | |||||||||
Video
|
|||||||||||||
Total U-verse Video Connections
|
5,661 | 4,768 | 18.7 | % | |||||||||
Net Change
|
201 | 232 | -13.4 | % | |||||||||
Consumer Revenue Connections
|
|||||||||||||
Broadband1
|
14,807 | 14,686 | 0.8 | % | |||||||||
U-verse Video Connections
|
5,642 | 4,755 | 18.7 | % | |||||||||
Voice2
|
15,775 | 17,960 | -12.2 | % | |||||||||
Total Consumer Revenue Connections1
|
36,224 | 37,401 | -3.1 | % | |||||||||
Net Change
|
(166 | ) | (266 | ) | 37.6 | % | |||||||
AT&T Inc.
|
|||||||||||||
Construction and capital expenditures
|
|||||||||||||
Capital expenditures
|
$ | 5,716 | $ | 4,252 | 34.4 | % | |||||||
Interest during construction
|
$ | 55 | $ | 66 | -16.7 | % | |||||||
Dividends Declared per Share
|
$ | 0.46 | $ | 0.45 | 2.2 | % | |||||||
End of Period Common Shares Outstanding (000,000)
|
5,195 | 5,423 | -4.2 | % | |||||||||
Debt Ratio3
|
46.6 | % | 45.6 | % |
100 BP
|
||||||||
Total Employees
|
246,730 | 243,340 | 1.4 | % | |||||||||
1
|
Consumer wireline broadband connections include DSL lines, U-verse High Speed Internet access and satellite broadband.
|
||||||||||||
2
|
Includes consumer U-verse Voice over Internet Protocol connections of 4,120 as of Match 31, 2014.
|
||||||||||||
3
|
Total long-term debt plus debt maturing within one year divided by total debt plus total stockholders' equity.
|
||||||||||||
Note: For the end of 1Q14, total switched access lines were 23,582, retail business switched access lines totaled 10,088, and wholesale,
|
|||||||||||||
national mass markets and coin switched access lines totaled 1,839.
|
Financial Data
|
|||||||||||||||||||
AT&T Inc.
|
|||||||||||||||||||
Non-GAAP Wireless Reconciliation
|
|||||||||||||||||||
Wireless Segment EBITDA
|
|||||||||||||||||||
Dollars in millions
|
|||||||||||||||||||
Unaudited
|
|||||||||||||||||||
Three Months Ended
|
|||||||||||||||||||
3/31/13
|
6/30/13
|
9/30/13
|
12/31/13
|
3/31/14
|
|||||||||||||||
Segment Operating Revenues
|
|||||||||||||||||||
Service
|
$ | 15,062 | $ | 15,370 | $ | 15,460 | $ | 15,660 | $ | 15,387 | |||||||||
Equipment
|
1,629 | 1,921 | 2,020 | 2,777 | 2,479 | ||||||||||||||
Total Segment Operating Revenues
|
$ | 16,691 | $ | 17,291 | $ | 17,480 | $ | 18,437 | $ | 17,866 | |||||||||
Segment Operating Expenses
|
|||||||||||||||||||
Operations and support
|
10,180 | 10,770 | 10,982 | 12,576 | 10,882 | ||||||||||||||
Depreciation and amortization
|
1,835 | 1,843 | 1,875 | 1,915 | 1,931 | ||||||||||||||
Total Segment Operating Expenses
|
12,015 | 12,613 | 12,857 | 14,491 | 12,813 | ||||||||||||||
Segment Operating Income
|
4,676 | 4,678 | 4,623 | 3,946 | 5,053 | ||||||||||||||
Segment Operating Income Margin
|
28.0 | % | 27.1 | % | 26.4 | % | 21.4 | % | 28.3 | % | |||||||||
Plus: Depreciation and amortization
|
1,835 | 1,843 | 1,875 | 1,915 | 1,931 | ||||||||||||||
EBITDA1
|
$ | 6,511 | $ | 6,521 | $ | 6,498 | $ | 5,861 | $ | 6,984 | |||||||||
EBITDA as a % of Service Revenues2
|
43.2 | % | 42.4 | % | 42.0 | % | 37.4 | % | 45.4 | % | |||||||||
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 Consolidated Reconciliation
|
||||||
Adjusted Diluted EPS
|
||||||
Unaudited
|
||||||
Three Months Ended
|
||||||
March 31,
|
||||||
2013
|
2014
|
|||||
Reported Diluted EPS
|
$ |
0.67
|
$ |
0.70
|
||
Adjustments:
|
||||||
Income Tax Settlement
|
(0.03)
|
-
|
||||
Leap Transaction-related Costs
|
-
|
0.01
|
||||
Adjusted Diluted EPS
|
$ |
0.64
|
$ |
0.71
|
||
Year-over-year growth - Adjusted
|
10.9%
|
|||||
Weighted Average Common Shares Outstanding
|
||||||
with Dilution (000,000)
|
5,530
|
5,238
|
||||
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.
|
||||||
Financial Data
|
||||||||
AT&T Inc.
|
||||||||
Non-GAAP Consolidated Reconciliation
|
||||||||
Free Cash Flow
|
||||||||
Dollars in millions
|
||||||||
Unaudited
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2014
|
|||||||
Net cash provided by operating activities
|
$ | 8,199 | $ | 8,799 | ||||
Less: Construction and capital expenditures
|
(4,318 | ) | (5,771 | ) | ||||
Free Cash Flow
|
$ | 3,881 | $ | 3,028 | ||||
Free Cash Flow after Dividends
|
||||||||
Dollars in millions
|
||||||||
Unaudited
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013 | 2014 | |||||||
Net cash provided by operating activities
|
$ | 8,199 | $ | 8,799 | ||||
Less: Construction and capital expenditures
|
(4,318 | ) | (5,771 | ) | ||||
Free Cash Flow
|
3,881 | 3,028 | ||||||
Less: Dividends paid
|
(2,502 | ) | (2,398 | ) | ||||
Free Cash Flow after Dividends
|
$ | 1,379 | $ | 630 | ||||
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
|
||||||
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
||||||
Dollars in millions
|
||||||
Unaudited
|
||||||
3/31/14
|
2014 YTD
|
|||||
Operating Revenues
|
$ |
32,476
|
$ |
32,476
|
||
Operating Expenses
|
26,198
|
26,198
|
||||
Total Operating Income
|
6,278
|
6,278
|
||||
Add back Depreciation and Amortization
|
4,617
|
4,617
|
||||
Consolidated Reported EBITDA
|
10,895
|
10,895
|
||||
Add Back:
|
||||||
Leap Transaction-related Cost1
|
81
|
81
|
||||
Total Consolidated Adjusted EBITDA
|
10,976
|
10,976
|
||||
Annualized Consolidated Adjusted EBITDA
|
$ |
43,904
|
$ |
43,904
|
||
End-of-period current debt
|
8,301
|
|||||
End-of-period long-term debt
|
71,575
|
|||||
Total End-of-Period Debt
|
79,876
|
|||||
Less Cash and Cash Equivalents
|
3,611
|
|||||
Net Debt Balance
|
$ |
76,265
|
||||
Annualized Net-Debt-to-Adjusted-EBITDA Ratio
|
1.74
|
|||||
1 Adjustments include Operations and Support expenses included in Leap Transaction-related 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.
|
||||||