AT&T Inc.
04/24/2024 | Press release | Distributed by Public on 04/24/2024 04:26
Material Event - Form 8-K
| AT&T Inc. | ||||||
| Financial Data | ||||||
| Consolidated Statements of Income | ||||||
| Dollars in millions except per share amounts | ||||||
| Unaudited | First Quarter | Percent | ||||
| 2024 | 2023 | Change | ||||
| Operating Revenues | ||||||
| Service | $ | 24,842 | $ | 24,617 | 0.9 | % |
| Equipment | 5,186 | 5,522 | (6.1) | % | ||
| Total Operating Revenues | 30,028 | 30,139 | (0.4) | % | ||
| Operating Expenses | ||||||
| Cost of revenues | ||||||
| Equipment | 5,143 | 5,658 | (9.1) | % | ||
|
Other cost of revenues (exclusive of depreciation
and amortization shown separately below)
|
6,811 | 6,673 | 2.1 | % | ||
| Selling, general and administrative | 7,021 | 7,175 | (2.1) | % | ||
| Asset impairments and abandonments and restructuring | 159 | - | - | % | ||
| Depreciation and amortization | 5,047 | 4,631 | 9.0 | % | ||
| Total Operating Expenses | 24,181 | 24,137 | 0.2 | % | ||
| Operating Income | 5,847 | 6,002 | (2.6) | % | ||
| Interest Expense | 1,724 | 1,708 | 0.9 | % | ||
| Equity in Net Income of Affiliates | 295 | 538 | (45.2) | % | ||
| Other Income (Expense) - Net | 451 | 935 | (51.8) | % | ||
| Income Before Income Taxes | 4,869 | 5,767 | (15.6) | % | ||
| Income Tax Expense | 1,118 | 1,314 | (14.9) | % | ||
| Net Income | 3,751 | 4,453 | (15.8) | % | ||
| Less: Net Income Attributable to Noncontrolling Interest | (306) | (225) | (36.0) | % | ||
| Net Income Attributable to AT&T | $ | 3,445 | $ | 4,228 | (18.5) | % |
| Less: Preferred Stock Dividends | (50) | (52) | 3.8 | % | ||
| Net Income Attributable to Common Stock | $ | 3,395 | $ | 4,176 | (18.7) | % |
| Basic Earnings Per Share Attributable to Common Stock | $ | 0.47 | $ | 0.58 | (19.0) | % |
| Weighted Average Common Shares Outstanding (000,000) | 7,192 | 7,168 | 0.3 | % | ||
| Diluted Earnings Per Share Attributable to Common Stock | $ | 0.47 | $ | 0.57 | (17.5) | % |
| Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,193 | 7,474 | (3.8) | % |
1
| AT&T Inc. | ||||
| Financial Data | ||||
| Consolidated Balance Sheets | ||||
| Dollars in millions | ||||
| Mar. 31, | Dec. 31, | |||
| 2024 | 2023 | |||
| Assets | (Unaudited) | |||
| Current Assets | ||||
| Cash and cash equivalents | $ | 3,520 | $ | 6,722 |
| Accounts receivable - net of related allowances for credit loss of $463 and $499 | 9,577 | 10,289 | ||
| Inventories | 2,127 | 2,177 | ||
| Prepaid and other current assets | 15,221 | 17,270 | ||
| Total current assets | 30,445 | 36,458 | ||
| Property, Plant and Equipment - Net | 127,851 | 128,489 | ||
| Goodwill - Net | 67,854 | 67,854 | ||
| Licenses - Net | 127,423 | 127,219 | ||
| Other Intangible Assets - Net | 5,281 | 5,283 | ||
| Investments in and Advances to Equity Affiliates | 891 | 1,251 | ||
| Operating Lease Right-Of-Use Assets | 20,668 | 20,905 | ||
| Other Assets | 19,015 | 19,601 | ||
| Total Assets | $ | 399,428 | $ | 407,060 |
| Liabilities and Stockholders' Equity | ||||
| Current Liabilities | ||||
| Debt maturing within one year | $ | 7,060 | $ | 9,477 |
| Accounts payable and accrued liabilities | 31,973 | 35,852 | ||
| Advanced billings and customer deposits | 3,713 | 3,778 | ||
| Dividends payable | 2,088 | 2,020 | ||
| Total current liabilities | 44,834 | 51,127 | ||
| Long-Term Debt | 125,704 | 127,854 | ||
| Deferred Credits and Other Noncurrent Liabilities | ||||
| Deferred income taxes | 58,820 | 58,666 | ||
| Postemployment benefit obligation | 8,743 | 8,734 | ||
| Operating lease liabilities | 17,291 | 17,568 | ||
| Other noncurrent liabilities | 23,441 | 23,696 | ||
| Total deferred credits and other noncurrent liabilities | 108,295 | 108,664 | ||
| Redeemable Noncontrolling Interest | 1,975 | 1,973 | ||
| Stockholders' Equity | ||||
| Preferred stock | - | - | ||
| Common stock | 7,621 | 7,621 | ||
| Additional paid-in capital | 111,599 | 114,519 | ||
| Retained (deficit) earnings | (1,570) | (5,015) | ||
| Treasury stock | (15,277) | (16,128) | ||
| Accumulated other comprehensive income | 2,167 | 2,300 | ||
| Noncontrolling interest | 14,080 | 14,145 | ||
| Total stockholders' equity | 118,620 | 117,442 | ||
| Total Liabilities and Stockholders' Equity | $ | 399,428 | $ | 407,060 |
2
| AT&T Inc. | ||||
| Financial Data | ||||
| Consolidated Statements of Cash Flows | ||||
| Dollars in millions | ||||
| Unaudited | First Quarter | |||
| 2024 | 2023 | |||
| Operating Activities | ||||
| Net income | $ | 3,751 | $ | 4,453 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 5,047 | 4,631 | ||
| Provision for uncollectible accounts | 472 | 477 | ||
| Deferred income tax expense | 479 | 529 | ||
| Net (gain) loss on investments, net of impairments | 201 | (93) | ||
| Pension and postretirement benefit expense (credit) | (471) | (670) | ||
| Asset impairments and abandonments and restructuring | 159 | - | ||
| Changes in operating assets and liabilities: | ||||
| Receivables | 512 | 620 | ||
| Other current assets | 629 | 364 | ||
| Accounts payable and other accrued liabilities | (3,497) | (3,409) | ||
| Equipment installment receivables and related sales | 24 | (243) | ||
| Deferred customer contract acquisition and fulfillment costs | 103 | (22) | ||
| Postretirement claims and contributions | (54) | (89) | ||
| Other - net | 192 | 130 | ||
| Total adjustments | 3,796 | 2,225 | ||
| Net Cash Provided by Operating Activities | 7,547 | 6,678 | ||
| Investing Activities | ||||
| Capital expenditures | (3,758) | (4,335) | ||
| Acquisitions, net of cash acquired | (211) | (291) | ||
| Dispositions | 8 | 15 | ||
| Distributions from DIRECTV in excess of cumulative equity in earnings | 194 | 774 | ||
| (Purchases), sales and settlements of securities and investments - net | 1,079 | 19 | ||
| Other - net | (273) | - | ||
| Net Cash Used in Investing Activities | (2,961) | (3,818) | ||
| Financing Activities | ||||
| Net change in short-term borrowings with original maturities of three months or less | 1,933 | (536) | ||
| Issuance of other short-term borrowings | 491 | 3,627 | ||
| Repayment of other short-term borrowings | (1,996) | - | ||
| Issuance of long-term debt | - | 3,366 | ||
| Repayment of long-term debt | (4,685) | (5,945) | ||
| Repayment of note payable to DIRECTV | - | (130) | ||
| Payment of vendor financing | (841) | (2,113) | ||
| Purchase of treasury stock | (157) | (188) | ||
| Issuance of treasury stock | - | 3 | ||
| Dividends paid | (2,034) | (2,014) | ||
| Other - net | (526) | 219 | ||
| Net Cash Used in Financing Activities | (7,815) | (3,711) | ||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (3,229) | (851) | ||
| Cash and cash equivalents and restricted cash beginning of year | 6,833 | 3,793 | ||
| Cash and Cash Equivalents and Restricted Cash End of Period | $ | 3,604 | $ | 2,942 |
3
| AT&T Inc. | ||||||
| Consolidated Supplementary Data | ||||||
| Supplementary Financial Data | ||||||
| Dollars in millions except per share amounts | ||||||
| Unaudited | First Quarter | Percent | ||||
| 2024 | 2023 | Change | ||||
| Capital expenditures | ||||||
| Purchase of property and equipment | $ | 3,721 | $ | 4,291 | (13.3) | % |
| Interest during construction | 37 | 44 | (15.9) | % | ||
| Total Capital Expenditures | $ | 3,758 | $ | 4,335 | (13.3) | % |
| Acquisitions, net of cash acquired | ||||||
| Business acquisitions | $ | - | $ | - | - | % |
| Spectrum acquisitions | 145 | 63 | - | % | ||
| Interest during construction - spectrum | 66 | 228 | (71.1) | % | ||
| Total Acquisitions | $ | 211 | $ | 291 | (27.5) | % |
| Cash paid for interest | $ | 2,077 | $ | 1,971 | 5.4 | % |
| Cash paid for income taxes, net of (refunds) | $ | (9) | $ | 10 | - | % |
| Dividends Declared per Common Share | $ | 0.2775 | $ | 0.2775 | - | % |
| End of Period Common Shares Outstanding (000,000) | 7,170 | 7,149 | 0.3 | % | ||
| Debt Ratio | 52.4 | % | 55.9 | % | (350) | BP |
| Total Employees | 148,290 | 157,790 | (6.0) | % |
4
COMMUNICATIONS SEGMENT
The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline and Consumer Wireline.
| Segment Results | ||||||
| Dollars in millions | ||||||
| Unaudited | First Quarter | Percent | ||||
| 2024 | 2023 | Change | ||||
| Segment Operating Revenues | ||||||
| Mobility | $ | 20,594 | $ | 20,582 | 0.1 | % |
| Business Wireline | 4,913 | 5,331 | (7.8) | % | ||
| Consumer Wireline | 3,350 | 3,239 | 3.4 | % | ||
| Total Segment Operating Revenues | 28,857 | 29,152 | (1.0) | % | ||
| Segment Operating Income | ||||||
| Mobility | 6,468 | 6,271 | 3.1 | % | ||
| Business Wireline | 64 | 378 | (83.1) | % | ||
| Consumer Wireline | 213 | 94 | - | % | ||
| Total Segment Operating Income | $ | 6,745 | $ | 6,743 | - | % |
| Supplementary Operating Data | ||||
| Subscribers and connections in thousands | ||||
| Unaudited | March 31, | Percent | ||
| 2024 | 2023 | Change | ||
| Broadband Connections | ||||
| Broadband | 15,143 | 15,061 | 0.5 | % |
| DSL | 191 | 284 | (32.7) | % |
| Total Broadband Connections | 15,334 | 15,345 | (0.1) | % |
| Voice Connections | ||||
| Retail Consumer Switched Access Lines | 3,934 | 4,938 | (20.3) | % |
|
Consumer VoIP Connections
|
2,467 | 2,835 | (13.0) | % |
| Total Retail Consumer Voice Connections | 6,401 | 7,773 | (17.7) | % |
| First Quarter | Percent | |||
| 2024 | 2023 | Change | ||
| Broadband Net Additions | ||||
| Broadband | 65 | (14) | - | % |
| DSL | (19) | (27) | 29.6 | % |
| Total Broadband Net Additions | 46 | (41) | - | % |
5
Mobility
Mobility provides nationwide wireless service and equipment.
| Mobility Results | ||||||
| Dollars in millions | ||||||
| Unaudited | First Quarter | Percent | ||||
| 2024 | 2023 | Change | ||||
| Operating Revenues | ||||||
| Service | $ | 15,994 | $ | 15,483 | 3.3 | % |
| Equipment | 4,600 | 5,099 | (9.8) | % | ||
| Total Operating Revenues | 20,594 | 20,582 | 0.1 | % | ||
| Operating Expenses | ||||||
| Operations and support | 11,639 | 12,213 | (4.7) | % | ||
| Depreciation and amortization | 2,487 | 2,098 | 18.5 | % | ||
| Total Operating Expenses | 14,126 | 14,311 | (1.3) | % | ||
| Operating Income | $ | 6,468 | $ | 6,271 | 3.1 | % |
| Operating Income Margin | 31.4 | % | 30.5 | % | 90 | BP |
| Supplementary Operating Data | ||||||
| Subscribers and connections in thousands | ||||||
| Unaudited | March 31, | Percent | ||||
| 2024 | 2023 | Change | ||||
| Mobility Subscribers | ||||||
| Postpaid | 87,450 | 85,421 | 2.4 | % | ||
| Postpaid phone | 71,558 | 70,049 | 2.2 | % | ||
| Prepaid | 19,211 | 19,200 | 0.1 | % | ||
| Reseller | 7,852 | 6,192 | 26.8 | % | ||
|
Total Mobility Subscribers1
|
114,513 | 110,813 | 3.3 | % | ||
|
1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems.
|
||||||
| First Quarter | Percent | |||||
| 2024 | 2023 | Change | ||||
| Mobility Net Additions | ||||||
| Postpaid Phone Net Additions | 349 | 424 | (17.7) | % | ||
| Total Phone Net Additions | 350 | 464 | (24.6) | % | ||
| Postpaid | 389 | 542 | (28.2) | % | ||
| Prepaid | 1 | 40 | (97.5) | % | ||
| Reseller | 351 | 108 | - | % | ||
|
Total Mobility Net Additions1
|
741 | 690 | 7.4 | % | ||
| Postpaid Churn | 0.89 | % | 0.99 | % | (10) BP | |
| Postpaid Phone-Only Churn | 0.72 | % | 0.81 | % | (9) BP | |
|
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.
|
||||||
6
Business Wireline
Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, as well as our fixed wireless access product and traditional voice and data services and related equipment to business customers.
| Business Wireline Results | ||||||
| Dollars in millions | ||||||
| Unaudited | First Quarter | Percent | ||||
| 2024 | 2023 | Change | ||||
| Operating Revenues | ||||||
| Service | $ | 4,700 | $ | 5,200 | (9.6) | % |
| Equipment | 213 | 131 | 62.6 | % | ||
| Total Operating Revenues | 4,913 | 5,331 | (7.8) | % | ||
| Operating Expenses | ||||||
| Operations and support | 3,487 | 3,623 | (3.8) | % | ||
| Depreciation and amortization | 1,362 | 1,330 | 2.4 | % | ||
| Total Operating Expenses | 4,849 | 4,953 | (2.1) | % | ||
| Operating Income | $ | 64 | $ | 378 | (83.1) | % |
| Operating Income Margin | 1.3 | % | 7.1 | % | (580) | BP |
7
Consumer Wireline
Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services to residential customers in select locations and our fixed wireless access product that provides home internet services. Consumer Wireline also provides legacy telephony voice communication services.
| Consumer Wireline Results | ||||||
| Dollars in millions | ||||||
| Unaudited | First Quarter | Percent | ||||
| 2024 | 2023 | Change | ||||
| Operating Revenues | ||||||
| Broadband | $ | 2,722 | $ | 2,527 | 7.7 | % |
| Legacy voice and data services | 342 | 396 | (13.6) | % | ||
| Other service and equipment | 286 | 316 | (9.5) | % | ||
| Total Operating Revenues | 3,350 | 3,239 | 3.4 | % | ||
| Operating Expenses | ||||||
| Operations and support | 2,256 | 2,284 | (1.2) | % | ||
| Depreciation and amortization | 881 | 861 | 2.3 | % | ||
| Total Operating Expenses | 3,137 | 3,145 | (0.3) | % | ||
| Operating Income | $ | 213 | $ | 94 | - | % |
| Operating Income Margin | 6.4 | % | 2.9 | % | 350 | BP |
| Supplementary Operating Data | ||||||
| Subscribers and connections in thousands | ||||||
| Unaudited | March 31, | Percent | ||||
| 2024 | 2023 | Change | ||||
| Broadband Connections | ||||||
| Total Broadband and DSL Connections | 13,930 | 13,949 | (0.1) | % | ||
|
Broadband1
|
13,784 | 13,730 | 0.4 | % | ||
| Fiber Broadband Connections | 8,559 | 7,487 | 14.3 | % | ||
| Voice Connections | ||||||
| Retail Consumer Switched Access Lines | 1,553 | 1,921 | (19.2) | % | ||
| Consumer VoIP Connections | 1,869 | 2,212 | (15.5) | % | ||
| Total Retail Consumer Voice Connections | 3,422 | 4,133 | (17.2) | % | ||
|
1 Includes AT&T Internet Air
|
||||||
| First Quarter | Percent | |||||
| 2024 | 2023 | Change | ||||
| Broadband Net Additions | ||||||
| Total Broadband and DSL Net Additions | 40 | (42) | - | % | ||
|
Broadband Net Additions1
|
55 | (23) | - | % | ||
| Fiber Broadband Net Additions | 252 | 272 | (7.4) | % | ||
|
1 Includes AT&T Internet Air
|
8
LATIN AMERICA SEGMENT
The segment provides wireless services and equipment to customers in Mexico.
| Segment Results | ||||||
| Dollars in millions | ||||||
| Unaudited | First Quarter | Percent | ||||
| 2024 | 2023 | Change | ||||
| Operating Revenues | ||||||
| Wireless service | $ | 690 | $ | 591 | 16.8 | % |
| Wireless equipment | 373 | 292 | 27.7 | % | ||
| Total Segment Operating Revenues | 1,063 | 883 | 20.4 | % | ||
| Operating Expenses | ||||||
| Operations and support | 883 | 738 | 19.6 | % | ||
| Depreciation and amortization | 177 | 175 | 1.1 | % | ||
| Total Segment Operating Expenses | 1,060 | 913 | 16.1 | % | ||
| Operating Income (Loss) | $ | 3 | $ | (30) | - | % |
| Operating Income Margin | 0.3 | % | (3.4) | % | 370 | BP |
| Supplementary Operating Data | ||||||
| Subscribers and connections in thousands | ||||||
| Unaudited | March 31, | Percent | ||||
| 2024 | 2023 | Change | ||||
| Mexico Wireless Subscribers | ||||||
| Postpaid | 5,352 | 4,973 | 7.6 | % | ||
| Prepaid | 16,742 | 16,146 | 3.7 | % | ||
| Reseller | 365 | 494 | (26.1) | % | ||
| Total Mexico Wireless Subscribers | 22,459 | 21,613 | 3.9 | % | ||
| First Quarter | Percent | |||||
| 2024 | 2023 | Change | ||||
| Mexico Wireless Net Additions | ||||||
| Postpaid | 116 | 49 | - | % | ||
| Prepaid | 79 | (58) | - | % | ||
| Reseller | (52) | 19 | - | % | ||
| Total Mexico Wireless Net Additions | 143 | 10 | - | % | ||
9
SUPPLEMENTAL SEGMENT RECONCILIATION
| Three Months Ended | ||||||||||
| Dollars in millions | ||||||||||
| Unaudited | ||||||||||
| March 31, 2024 | ||||||||||
| Revenues |
Operations and Support Expenses |
EBITDA |
Depreciation and Amortization |
Operating Income (Loss) |
||||||
| Communications | ||||||||||
| Mobility | $ | 20,594 | $ | 11,639 | $ | 8,955 | $ | 2,487 | $ | 6,468 |
| Business Wireline | 4,913 | 3,487 | 1,426 | 1,362 | 64 | |||||
| Consumer Wireline | 3,350 | 2,256 | 1,094 | 881 | 213 | |||||
| Total Communications | 28,857 | 17,382 | 11,475 | 4,730 | 6,745 | |||||
| Latin America - Mexico | 1,063 | 883 | 180 | 177 | 3 | |||||
| Segment Total | 29,920 | 18,265 | 11,655 | 4,907 | 6,748 | |||||
| Corporate and Other | ||||||||||
| Corporate: | ||||||||||
| DTV-related retained costs | - | 134 | (134) | 120 | (254) | |||||
| Parent administration support | - | 392 | (392) | 1 | (393) | |||||
| Securitization fees | 26 | 165 | (139) | - | (139) | |||||
| Value portfolio | 82 | 26 | 56 | 4 | 52 | |||||
| Total Corporate | 108 | 717 | (609) | 125 | (734) | |||||
| Certain significant items | - | 152 | (152) | 15 | (167) | |||||
| Total Corporate and Other | 108 | 869 | (761) | 140 | (901) | |||||
| AT&T Inc. | $ | 30,028 | $ | 19,134 | $ | 10,894 | $ | 5,047 | $ | 5,847 |
| March 31, 2023 | ||||||||||
| Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | ||||||
| Communications | ||||||||||
| Mobility | $ | 20,582 | $ | 12,213 | $ | 8,369 | $ | 2,098 | $ | 6,271 |
| Business Wireline | 5,331 | 3,623 | 1,708 | 1,330 | 378 | |||||
| Consumer Wireline | 3,239 | 2,284 | 955 | 861 | 94 | |||||
| Total Communications | 29,152 | 18,120 | 11,032 | 4,289 | 6,743 | |||||
| Latin America - Mexico | 883 | 738 | 145 | 175 | (30) | |||||
| Segment Total | 30,035 | 18,858 | 11,177 | 4,464 | 6,713 | |||||
| Corporate and Other | ||||||||||
| Corporate: | ||||||||||
| DTV-related retained costs | - | 169 | (169) | 144 | (313) | |||||
| Parent administration support | (9) | 374 | (383) | 1 | (384) | |||||
| Securitization fees | 19 | 121 | (102) | - | (102) | |||||
| Value portfolio | 94 | 28 | 66 | 5 | 61 | |||||
| Total Corporate | 104 | 692 | (588) | 150 | (738) | |||||
| Certain significant items | - | (44) | 44 | 17 | 27 | |||||
| Total Corporate and Other | 104 | 648 | (544) | 167 | (711) | |||||
| AT&T Inc. | $ | 30,139 | $ | 19,506 | $ | 10,633 | $ | 4,631 | $ | 6,002 |
10