Delaware | 001-08610 | 43-1301883 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
||||||
208 S. Akard St., Dallas, Texas
(Address of Principal Executive Offices)
|
75202
(Zip Code)
|
|||||||
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered |
||||||||||||
Common Shares (Par Value $1.00 Per Share) | T | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 5.000% Perpetual Preferred Stock, Series A | T PRA | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1000th interest in a share of 4.750% Perpetual Preferred Stock, Series C | T PRC | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.500% Global Notes due March 15, 2023 | T 23 | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.750% Global Notes due May 19, 2023 | T 23C | New York Stock Exchange | ||||||||||||
AT&T Inc. Floating Rate Global Notes due September 5, 2023 | T 23D | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.050% Global Notes due September 5, 2023 | T 23E | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.300% Global Notes due September 5, 2023 | T 23A | New York Stock Exchange |
Title of each class |
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||||||||||||
AT&T Inc. 1.950% Global Notes due September 15, 2023 | T 23F | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.400% Global Notes due March 15, 2024 | T 24A | New York Stock Exchange | ||||||||||||
AT&T Inc. Floating Rate Global Notes due March 6, 2025 | T 25A | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.500% Global Notes due December 17, 2025 | T 25 | New York Stock Exchange | ||||||||||||
AT&T Inc. 0.250% Global Notes due March 4, 2026 | T 26E | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.800% Global Notes due September 5, 2026 | T 26D | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.900% Global Notes due December 4, 2026 | T 26A | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.600% Global Notes due May 19, 2028 | T 28C | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.350% Global Notes due September 5, 2029 | T 29D | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.375% Global Notes due September 14, 2029 | T 29B | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.600% Global Notes due December 17, 2029 | T 29A | New York Stock Exchange | ||||||||||||
AT&T Inc. 0.800% Global Notes due March 4, 2030 | T 30B | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.050% Global Notes due May 19, 2032 | T 32A | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.550% Global Notes due December 17, 2032 | T 32 | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.200% Global Notes due November 18, 2033 | T 33 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.375% Global Notes due March 15, 2034 | T 34 | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.450% Global Notes due March 15, 2035 | T 35 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.150% Global Notes due September 4, 2036 | T 36A | New York Stock Exchange | ||||||||||||
AT&T Inc. 2.600% Global Notes due May 19, 2038 | T 38C | New York Stock Exchange | ||||||||||||
AT&T Inc. 1.800% Global Notes due September 14, 2039 | T 39B | New York Stock Exchange | ||||||||||||
AT&T Inc. 7.000% Global Notes due April 30, 2040 | T 40 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.250% Global Notes due June 1, 2043 | T 43 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.875% Global Notes due June 1, 2044 | T 44 | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.000% Global Notes due June 1, 2049 | T 49A | New York Stock Exchange | ||||||||||||
AT&T Inc. 4.250% Global Notes due March 1, 2050 | T 50 | New York Stock Exchange | ||||||||||||
AT&T Inc. 3.750% Global Notes due September 1, 2050 | T 50A | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.350% Global Notes due November 1, 2066 | TBB | New York Stock Exchange | ||||||||||||
AT&T Inc. 5.625% Global Notes due August 1, 2067 | TBC | New York Stock Exchange |
(d) |
Exhibits | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
AT&T INC. | |||||
Date: April 20, 2023 |
By: /s/ Sabrina Sanders .
Sabrina Sanders
Senior Vice President - Chief Accounting Officer
and Controller
|
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Income | |||||||||||
Dollars in millions except per share amounts | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Operating Revenues | |||||||||||
Service | $ | 24,617 | $ | 23,999 | 2.6 | % | |||||
Equipment | 5,522 | 5,713 | (3.3) | % | |||||||
Total Operating Revenues | 30,139 | 29,712 | 1.4 | % | |||||||
Operating Expenses | |||||||||||
Cost of revenues | |||||||||||
Equipment | 5,658 | 6,036 | (6.3) | % | |||||||
Other cost of revenues (exclusive of depreciation and amortization shown separately below) |
6,673 | 6,699 | (0.4) | % | |||||||
Selling, general and administrative | 7,175 | 6,978 | 2.8 | % | |||||||
Depreciation and amortization | 4,631 | 4,462 | 3.8 | % | |||||||
Total Operating Expenses | 24,137 | 24,175 | (0.2) | % | |||||||
Operating Income | 6,002 | 5,537 | 8.4 | % | |||||||
Interest Expense | 1,708 | 1,626 | 5.0 | % | |||||||
Equity in Net Income of Affiliates | 538 | 521 | 3.3 | % | |||||||
Other Income (Expense) — Net | 935 | 2,157 | (56.7) | % | |||||||
Income from Continuing Operations Before Income Taxes | 5,767 | 6,589 | (12.5) | % | |||||||
Income tax expense on continuing operations | 1,314 | 1,440 | (8.8) | % | |||||||
Income From Continuing Operations | 4,453 | 5,149 | (13.5) | % | |||||||
Income from discontinued operations, net of tax | — | 15 | — | % | |||||||
Net Income | 4,453 | 5,164 | (13.8) | % | |||||||
Less: Net Income Attributable to Noncontrolling Interest | (225) | (354) | 36.4 | % | |||||||
Net Income Attributable to AT&T | $ | 4,228 | $ | 4,810 | (12.1) | % | |||||
Less: Preferred Stock Dividends | (52) | (48) | (8.3) | % | |||||||
Net Income Attributable to Common Stock | $ | 4,176 | $ | 4,762 | (12.3) | % | |||||
Basic Earnings Per Share Attributable to
Common Stock
|
|||||||||||
From continuing operations | $ | 0.58 | $ | 0.66 | (12.1) | % | |||||
From discontinued operations | $ | — | $ | — | — | % | |||||
$ | 0.58 | $ | 0.66 | (12.1) | % | ||||||
Weighted Average Common Shares
Outstanding (000,000)
|
7,168 | 7,184 | (0.2) | % | |||||||
Diluted Earnings Per Share Attributable to
Common Stock
|
|||||||||||
From continuing operations | $ | 0.57 | $ | 0.65 | (12.3) | % | |||||
From discontinued operations | $ | — | $ | — | — | % | |||||
$ | 0.57 | $ | 0.65 | (12.3) | % | ||||||
Weighted Average Common Shares
Outstanding with Dilution (000,000)
|
7,474 | 7,556 | (1.1) | % | |||||||
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Balance Sheets | |||||||||||
Dollars in millions | |||||||||||
Unaudited | Mar. 31, | Dec. 31, | |||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 2,821 | $ | 3,701 | |||||||
Accounts receivable – net of related allowances for credit loss of $619 and $588 | 10,214 | 11,466 | |||||||||
Inventories | 2,791 | 3,123 | |||||||||
Prepaid and other current assets | 14,077 | 14,818 | |||||||||
Total current assets | 29,903 | 33,108 | |||||||||
Property, Plant and Equipment – Net | 128,458 | 127,445 | |||||||||
Goodwill – Net | 67,895 | 67,895 | |||||||||
Licenses – Net | 124,502 | 124,092 | |||||||||
Other Intangible Assets – Net | 5,346 | 5,354 | |||||||||
Investments in and Advances to Equity Affiliates | 2,810 | 3,533 | |||||||||
Operating Lease Right-Of-Use Assets | 21,619 | 21,814 | |||||||||
Other Assets | 20,340 | 19,612 | |||||||||
Total Assets | $ | 400,873 | $ | 402,853 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Debt maturing within one year | $ | 13,757 | $ | 7,467 | |||||||
Note payable to DIRECTV | — | 130 | |||||||||
Accounts payable and accrued liabilities | 38,389 | 42,644 | |||||||||
Advanced billings and customer deposits | 3,922 | 3,918 | |||||||||
Dividends payable | 2,082 | 2,014 | |||||||||
Total current liabilities | 58,150 | 56,173 | |||||||||
Long-Term Debt | 123,727 | 128,423 | |||||||||
Deferred Credits and Other Noncurrent Liabilities | |||||||||||
Deferred income taxes | 57,294 | 57,032 | |||||||||
Postemployment benefit obligation | 7,060 | 7,260 | |||||||||
Operating lease liabilities | 18,413 | 18,659 | |||||||||
Other noncurrent liabilities | 27,883 | 28,849 | |||||||||
Total deferred credits and other noncurrent liabilities | 110,650 | 111,800 | |||||||||
Stockholders’ Equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 7,621 | 7,621 | |||||||||
Additional paid-in capital | 120,774 | 123,610 | |||||||||
Retained (deficit) earnings | (15,187) | (19,415) | |||||||||
Treasury stock | (16,166) | (17,082) | |||||||||
Accumulated other comprehensive income | 2,354 | 2,766 | |||||||||
Noncontrolling interest | 8,950 | 8,957 | |||||||||
Total stockholders’ equity | 108,346 | 106,457 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 400,873 | $ | 402,853 | |||||||
AT&T Inc. | |||||||||||
Financial Data | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | ||||||||||
2023 | 2022 | ||||||||||
Operating Activities | |||||||||||
Income from continuing operations | $ | 4,453 | $ | 5,149 | |||||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations: |
|||||||||||
Depreciation and amortization | 4,631 | 4,462 | |||||||||
Provision for uncollectible accounts | 477 | 430 | |||||||||
Deferred income tax expense | 529 | 1,150 | |||||||||
Net (gain) loss on investments, net of impairments | (93) | 87 | |||||||||
Pension and postretirement benefit expense (credit) | (670) | (940) | |||||||||
Actuarial (gain) loss on pension and postretirement benefits | — | (1,053) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 620 | 864 | |||||||||
Other current assets | 364 | 244 | |||||||||
Accounts payable and other accrued liabilities | (3,409) | (2,651) | |||||||||
Equipment installment receivables and related sales | (243) | 541 | |||||||||
Deferred customer contract acquisition and fulfillment costs | (22) | (259) | |||||||||
Postretirement claims and contributions | (89) | (97) | |||||||||
Other - net | 130 | (297) | |||||||||
Total adjustments | 2,225 | 2,481 | |||||||||
Net Cash Provided by Operating Activities from Continuing Operations | 6,678 | 7,630 | |||||||||
Investing Activities | |||||||||||
Capital expenditures | (4,335) | (4,568) | |||||||||
Acquisitions, net of cash acquired | (291) | (9,244) | |||||||||
Dispositions | 15 | 7 | |||||||||
Distributions from DIRECTV in excess of cumulative equity in earnings | 774 | 1,315 | |||||||||
Other - net | 19 | 32 | |||||||||
Net Cash Used in Investing Activities from Continuing Operations | (3,818) | (12,458) | |||||||||
Financing Activities | |||||||||||
Net change in short-term borrowings with original maturities of three months or less | (536) | 2,285 | |||||||||
Issuance of other short-term borrowings | 3,627 | 2,593 | |||||||||
Repayment of other short-term borrowings | — | (3,407) | |||||||||
Issuance of long-term debt | 3,366 | 479 | |||||||||
Repayment of long-term debt | (5,945) | (790) | |||||||||
Repayment of note payable to DIRECTV | (130) | (294) | |||||||||
Payment of vendor financing | (2,113) | (1,566) | |||||||||
Purchase of treasury stock | (188) | (197) | |||||||||
Issuance of treasury stock | 3 | 26 | |||||||||
Dividends paid | (2,014) | (3,749) | |||||||||
Other - net | 219 | (930) | |||||||||
Net Cash Used in Financing Activities from Continuing Operations | (3,711) | (5,550) | |||||||||
Net decrease in cash and cash equivalents and restricted cash from continuing operations | (851) | (10,378) | |||||||||
Cash flows from Discontinued Operations: | |||||||||||
Cash (used in) provided by operating activities | — | (1,898) | |||||||||
Cash provided by (used in) investing activities | — | (193) | |||||||||
Cash provided by (used in) financing activities | — | 29,801 | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash from discontinued operations | — | 27,710 | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (851) | $ | 17,332 | |||||||
Cash and cash equivalents and restricted cash beginning of year | 3,793 | 21,316 | |||||||||
Cash and Cash Equivalents and Restricted Cash End of Period | $ | 2,942 | $ | 38,648 |
AT&T Inc. | |||||||||||
Consolidated Supplementary Data | |||||||||||
Supplementary Financial Data | |||||||||||
Dollars in millions except per share amounts | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Capital expenditures | |||||||||||
Purchase of property and equipment | $ | 4,291 | $ | 4,532 | (5.3) | % | |||||
Interest during construction - capital expenditures | 44 | 36 | 22.2 | % | |||||||
Total Capital Expenditures | $ | 4,335 | $ | 4,568 | (5.1) | % | |||||
Acquisitions, net of cash acquired | |||||||||||
Business acquisitions | $ | — | $ | — | — | % | |||||
Spectrum acquisitions | 63 | 8,956 | (99.3) | % | |||||||
Interest during construction - spectrum | 228 | 288 | (20.8) | % | |||||||
Total Acquisitions | $ | 291 | $ | 9,244 | (96.9) | % | |||||
Cash paid for interest - continuing operations | $ | 1,971 | $ | 2,154 | (8.5) | % | |||||
Cash paid for income taxes, net of refunds - continuing operations | $ | 10 | $ | 72 | (86.1) | % | |||||
Dividends Declared per Common Share | $ | 0.2775 | $ | 0.2775 | — | % | |||||
End of Period Common Shares Outstanding (000,000) | 7,149 | 7,159 | (0.1) | % | |||||||
Debt Ratio | 55.9 | % | 48.5 | % | 740 | BP | |||||
Total Employees | 157,790 | 172,580 | (8.6) | % | |||||||
Segment Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Segment Operating Revenues | |||||||||||
Mobility | $ | 20,582 | $ | 20,075 | 2.5 | % | |||||
Business Wireline | 5,331 | 5,640 | (5.5) | % | |||||||
Consumer Wireline | 3,239 | 3,161 | 2.5 | % | |||||||
Total Segment Operating Revenues | 29,152 | 28,876 | 1.0 | % | |||||||
Operating Income | |||||||||||
Mobility | 6,271 | 5,689 | 10.2 | % | |||||||
Business Wireline | 378 | 639 | (40.8) | % | |||||||
Consumer Wireline | 94 | 159 | (40.9) | % | |||||||
Total Operating Income | $ | 6,743 | $ | 6,487 | 3.9 | % | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Broadband Connections | |||||||||||
Broadband | 15,061 | 15,130 | (0.5) | % | |||||||
DSL | 284 | 403 | (29.5) | % | |||||||
Total Broadband Connections | 15,345 | 15,533 | (1.2) | % | |||||||
Voice Connections | |||||||||||
Retail Consumer Switched Access Lines | 4,938 | 5,956 | (17.1) | % | |||||||
U-verse Consumer VoIP Connections | 2,835 | 3,227 | (12.1) | % | |||||||
Total Retail Voice Connections | 7,773 | 9,183 | (15.4) | % | |||||||
First Quarter | Percent | ||||||||||
2023 | 2022 | Change | |||||||||
Broadband Net Additions | |||||||||||
Broadband | (14) | 56 | — | % | |||||||
DSL | (27) | (27) | — | % | |||||||
Total Broadband Net Additions | (41) | 29 | — | % | |||||||
Mobility Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Operating Revenues | |||||||||||
Service | $ | 15,483 | $ | 14,724 | 5.2 | % | |||||
Equipment | 5,099 | 5,351 | (4.7) | % | |||||||
Total Operating Revenues | 20,582 | 20,075 | 2.5 | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 12,213 | 12,327 | (0.9) | % | |||||||
Depreciation and amortization | 2,098 | 2,059 | 1.9 | % | |||||||
Total Operating Expenses | 14,311 | 14,386 | (0.5) | % | |||||||
Operating Income | $ | 6,271 | $ | 5,689 | 10.2 | % | |||||
Operating Income Margin | 30.5 | % | 28.3 | % | 220 | BP | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Mobility Subscribers | |||||||||||
Postpaid | 85,421 | 81,639 | 4.6 | % | |||||||
Postpaid phone | 70,049 | 67,518 | 3.7 | % | |||||||
Prepaid | 19,200 | 18,859 | 1.8 | % | |||||||
Reseller | 6,192 | 5,383 | 15.0 | % | |||||||
Connected Devices | 112,026 | 90,735 | 23.5 | % | |||||||
Total Mobility Subscribers1 |
222,839 | 196,616 | 13.3 | % | |||||||
1Wireless subscribers at March 31, 2023 includes a reduction of 295 subscribers and connections (206 postpaid, including 74 phone, 132 prepaid, and 89 connected devices) resulting from our 3G network shutdown. | |||||||||||
First Quarter | Percent | ||||||||||
2023 | 2022 | Change | |||||||||
Mobility Net Additions | |||||||||||
Postpaid Phone Net Additions | 424 | 691 | (38.6) | % | |||||||
Total Phone Net Additions | 464 | 804 | (42.3) | % | |||||||
Postpaid | 542 | 965 | (43.8) | % | |||||||
Prepaid | 40 | 116 | (65.5) | % | |||||||
Reseller | 108 | (17) | — | % | |||||||
Connected Devices | 4,457 | 4,468 | (0.2) | % | |||||||
Total Mobility Net Additions | 5,147 | 5,532 | (7.0) | % | |||||||
Postpaid Churn | 0.99 | % | 0.94 | % | 5 BP | ||||||
Postpaid Phone-Only Churn | 0.81 | % | 0.79 | % | 2 BP |
Business Wireline Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Operating Revenues | |||||||||||
Service | $ | 5,200 | $ | 5,478 | (5.1) | % | |||||
Equipment | 131 | 162 | (19.1) | % | |||||||
Total Operating Revenues | 5,331 | 5,640 | (5.5) | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 3,623 | 3,702 | (2.1) | % | |||||||
Depreciation and amortization | 1,330 | 1,299 | 2.4 | % | |||||||
Total Operating Expenses | 4,953 | 5,001 | (1.0) | % | |||||||
Operating Income | $ | 378 | $ | 639 | (40.8) | % | |||||
Operating Income Margin | 7.1 | % | 11.3 | % | (420) | BP |
Consumer Wireline Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Operating Revenues | |||||||||||
Broadband | $ | 2,527 | $ | 2,355 | 7.3 | % | |||||
Legacy voice and data services | 396 | 460 | (13.9) | % | |||||||
Other service and equipment | 316 | 346 | (8.7) | % | |||||||
Total Operating Revenues | 3,239 | 3,161 | 2.5 | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 2,284 | 2,236 | 2.1 | % | |||||||
Depreciation and amortization | 861 | 766 | 12.4 | % | |||||||
Total Operating Expenses | 3,145 | 3,002 | 4.8 | % | |||||||
Operating Income | $ | 94 | $ | 159 | (40.9) | % | |||||
Operating Income Margin | 2.9 | % | 5.0 | % | (210) | BP | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Broadband Connections | |||||||||||
Total Broadband and DSL Connections | 13,949 | 14,148 | (1.4) | % | |||||||
Broadband | 13,730 | 13,850 | (0.9) | % | |||||||
Fiber Broadband Connections | 7,487 | 6,281 | 19.2 | % | |||||||
Voice Connections | |||||||||||
Retail Consumer Switched Access Lines | 1,921 | 2,324 | (17.3) | % | |||||||
U-verse Consumer VoIP Connections | 2,212 | 2,628 | (15.8) | % | |||||||
Total Retail Consumer Voice Connections | 4,133 | 4,952 | (16.5) | % | |||||||
First Quarter | Percent | ||||||||||
2023 | 2022 | Change | |||||||||
Broadband Net Additions | |||||||||||
Total Broadband and DSL Net Additions | (42) | (12) | — | % | |||||||
Broadband | (23) | 5 | — | % | |||||||
Fiber Broadband Net Additions | 272 | 289 | (5.9) | % | |||||||
Segment Results | |||||||||||
Dollars in millions | |||||||||||
Unaudited | First Quarter | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Operating Revenues | |||||||||||
Wireless service | $ | 591 | $ | 490 | 20.6 | % | |||||
Wireless equipment | 292 | 200 | 46.0 | % | |||||||
Total Segment Operating Revenues | 883 | 690 | 28.0 | % | |||||||
Operating Expenses | |||||||||||
Operations and support | 738 | 631 | 17.0 | % | |||||||
Depreciation and amortization | 175 | 161 | 8.7 | % | |||||||
Total Segment Operating Expenses | 913 | 792 | 15.3 | % | |||||||
Operating Income (Loss) | $ | (30) | $ | (102) | 70.6 | % | |||||
Operating Income Margin | (3.4) | % | (14.8) | % | 1,140 | BP | |||||
Supplementary Operating Data | |||||||||||
Subscribers and connections in thousands | |||||||||||
Unaudited | March 31, | Percent | |||||||||
2023 | 2022 | Change | |||||||||
Mexico Wireless Subscribers | |||||||||||
Postpaid | 4,973 | 4,810 | 3.4 | % | |||||||
Prepaid | 16,146 | 15,235 | 6.0 | % | |||||||
Reseller | 494 | 458 | 7.9 | % | |||||||
Total Mexico Wireless Subscribers | 21,613 | 20,503 | 5.4 | % | |||||||
First Quarter | Percent | ||||||||||
2023 | 2022 | Change | |||||||||
Mexico Wireless Net Additions | |||||||||||
Postpaid | 49 | 3 | — | % | |||||||
Prepaid | (58) | 178 | — | % | |||||||
Reseller | 19 | (40) | — | % | |||||||
Total Mexico Wireless Net Additions | 10 | 141 | (92.9) | % | |||||||
Three Months Ended | |||||||||||||||||
Dollars in millions | |||||||||||||||||
Unaudited | |||||||||||||||||
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 | |||||||
March 31, 2022 | |||||||||||||||||
Revenues | Operations and Support Expenses | EBITDA | Depreciation and Amortization | Operating Income (Loss) | |||||||||||||
Communications | |||||||||||||||||
Mobility | $ | 20,075 | $ | 12,327 | $ | 7,748 | $ | 2,059 | $ | 5,689 | |||||||
Business Wireline | 5,640 | 3,702 | 1,938 | 1,299 | 639 | ||||||||||||
Consumer Wireline | 3,161 | 2,236 | 925 | 766 | 159 | ||||||||||||
Total Communications | 28,876 | 18,265 | 10,611 | 4,124 | 6,487 | ||||||||||||
Latin America - Mexico | 690 | 631 | 59 | 161 | (102) | ||||||||||||
Segment Total | 29,566 | 18,896 | 10,670 | 4,285 | 6,385 | ||||||||||||
Corporate and Other | |||||||||||||||||
Corporate: | |||||||||||||||||
DTV-related retained costs | 8 | 160 | (152) | 134 | (286) | ||||||||||||
Parent administration support | (12) | 347 | (359) | 6 | (365) | ||||||||||||
Securitization fees | 16 | 82 | (66) | — | (66) | ||||||||||||
Value portfolio | 134 | 37 | 97 | 10 | 87 | ||||||||||||
Total Corporate | 146 | 626 | (480) | 150 | (630) | ||||||||||||
Certain significant items | — | 191 | (191) | 27 | (218) | ||||||||||||
Total Corporate and Other | 146 | 817 | (671) | 177 | (848) | ||||||||||||
AT&T Inc. | $ | 29,712 | $ | 19,713 | $ | 9,999 | $ | 4,462 | $ | 5,537 | |||||||
Free Cash Flow and Free Cash Flow Dividend Payout Ratio | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2023 | 2022 | |||||||
Net cash provided by operating activities from continuing operations1 |
$ | 6,678 | $ | 7,630 | ||||
Add: Distributions from DIRECTV classified as investing activities | 774 | 1,315 | ||||||
Less: Capital expenditures | (4,335) | (4,568) | ||||||
Less: Cash paid for vendor financing | (2,113) | (1,566) | ||||||
Free Cash Flow | 1,004 | 2,811 | ||||||
Less: Dividends paid | (2,014) | (3,749) | ||||||
Free Cash Flow after Dividends | $ | (1,010) | $ | (938) | ||||
Free Cash Flow Dividend Payout Ratio | 200.6 | % | 133.4 | % | ||||
1Includes distributions from DIRECTV of $534 in the first quarter of 2023 and $522 in the first quarter of 2022. |
Cash Paid for Capital Investment | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2023 | 2022 | |||||||
Capital Expenditures | $ | (4,335) | $ | (4,568) | ||||
Cash paid for vendor financing | (2,113) | (1,566) | ||||||
Cash paid for Capital Investment | $ | (6,448) | $ | (6,134) | ||||
EBITDA, EBITDA Margin and EBITDA Service Margin | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2023 | 2022 | |||||||
Income from Continuing Operations | $ | 4,453 | $ | 5,149 | ||||
Additions: | ||||||||
Income Tax Expense | 1,314 | 1,440 | ||||||
Interest Expense | 1,708 | 1,626 | ||||||
Equity in Net (Income) of Affiliates | (538) | (521) | ||||||
Other (Income) Expense - Net | (935) | (2,157) | ||||||
Depreciation and amortization | 4,631 | 4,462 | ||||||
EBITDA | 10,633 | 9,999 | ||||||
Transaction and other costs | — | 98 | ||||||
Benefit-related (gain) loss | (44) | 93 | ||||||
Adjusted EBITDA1 |
$ | 10,589 | $ | 10,190 | ||||
1See "Adjusting Items" section for additional discussion and reconciliation of adjusted items. |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2023 | 2022 | |||||||
Communications Segment | ||||||||
Operating Income | $ | 6,743 | $ | 6,487 | ||||
Add: Depreciation and amortization | 4,289 | 4,124 | ||||||
EBITDA | $ | 11,032 | $ | 10,611 | ||||
Total Operating Revenues | $ | 29,152 | $ | 28,876 | ||||
Operating Income Margin | 23.1 | % | 22.5 | % | ||||
EBITDA Margin | 37.8 | % | 36.7 | % | ||||
Mobility | ||||||||
Operating Income | $ | 6,271 | $ | 5,689 | ||||
Add: Depreciation and amortization | 2,098 | 2,059 | ||||||
EBITDA | $ | 8,369 | $ | 7,748 | ||||
Total Operating Revenues | $ | 20,582 | $ | 20,075 | ||||
Service Revenues | 15,483 | 14,724 | ||||||
Operating Income Margin | 30.5 | % | 28.3 | % | ||||
EBITDA Margin | 40.7 | % | 38.6 | % | ||||
EBITDA Service Margin | 54.1 | % | 52.6 | % | ||||
Business Wireline | ||||||||
Operating Income | $ | 378 | $ | 639 | ||||
Add: Depreciation and amortization | 1,330 | 1,299 | ||||||
EBITDA | $ | 1,708 | $ | 1,938 | ||||
Total Operating Revenues | $ | 5,331 | $ | 5,640 | ||||
Operating Income Margin | 7.1 | % | 11.3 | % | ||||
EBITDA Margin | 32.0 | % | 34.4 | % | ||||
Consumer Wireline | ||||||||
Operating Income | $ | 94 | $ | 159 | ||||
Add: Depreciation and amortization | 861 | 766 | ||||||
EBITDA | $ | 955 | $ | 925 | ||||
Total Operating Revenues | $ | 3,239 | $ | 3,161 | ||||
Operating Income Margin | 2.9 | % | 5.0 | % | ||||
EBITDA Margin | 29.5 | % | 29.3 | % | ||||
Latin America Segment | ||||||||
Operating Income (Loss) | $ | (30) | $ | (102) | ||||
Add: Depreciation and amortization | 175 | 161 | ||||||
EBITDA | $ | 145 | $ | 59 | ||||
Total Operating Revenues | $ | 883 | $ | 690 | ||||
Operating Income Margin | -3.4 | % | -14.8 | % | ||||
EBITDA Margin | 16.4 | % | 8.6 | % |
Adjusting Items | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2023 | 2022 | |||||||
Operating Expenses | ||||||||
Transaction and other costs | $ | — | $ | 98 | ||||
Benefit-related (gain) loss | (44) | 93 | ||||||
Adjustments to Operations and Support Expenses | (44) | 191 | ||||||
Amortization of intangible assets | 17 | 27 | ||||||
Adjustments to Operating Expenses | (27) | 218 | ||||||
Other | ||||||||
DIRECTV intangible amortization (proportionate share) | 341 | 416 | ||||||
Benefit-related (gain) loss and other | (111) | 92 | ||||||
Actuarial (gain) loss | — | (1,053) | ||||||
Adjustments to Income Before Income Taxes | 203 | (327) | ||||||
Tax impact of adjustments | 46 | (103) | ||||||
Adjustments to Net Income | $ | 157 | $ | (224) | ||||
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA Margin | ||||||||
Dollars in millions | ||||||||
First Quarter | ||||||||
2023 | 2022 | |||||||
Operating Income | $ | 6,002 | $ | 5,537 | ||||
Adjustments to Operating Expenses | (27) | 218 | ||||||
Adjusted Operating Income | $ | 5,975 | $ | 5,755 | ||||
EBITDA | $ | 10,633 | $ | 9,999 | ||||
Adjustments to Operations and Support Expenses | (44) | 191 | ||||||
Adjusted EBITDA | $ | 10,589 | $ | 10,190 | ||||
Total Operating Revenues | $ | 30,139 | $ | 29,712 | ||||
Operating Income Margin | 19.9 | % | 18.6 | % | ||||
Adjusted Operating Income Margin | 19.8 | % | 19.4 | % | ||||
Adjusted EBITDA Margin | 35.1 | % | 34.3 | % | ||||
Adjusted Diluted EPS | ||||||||
First Quarter | ||||||||
2023 | 2022 | |||||||
Diluted Earnings Per Share (EPS) | $ | 0.57 | $ | 0.65 | ||||
DIRECTV intangible amortization (proportionate share) | 0.04 | 0.04 | ||||||
Actuarial (gain) loss | — | (0.11) | ||||||
Benefit-related, transaction and other costs1 |
(0.01) | 0.05 | ||||||
Adjusted EPS | $ | 0.60 | $ | 0.63 | ||||
Year-over-year growth - Adjusted | -4.8 | % | ||||||
Weighted Average Common Shares Outstanding with Dilution (000,000) | 7,474 | 7,556 | ||||||
1As of January 1, 2022, we adopted, through retrospective application, Accounting Standards Update (ASU) No. 2020-06, which requires that instruments which may be settled in cash or stock to be presumed settled in stock in calculating diluted EPS. While our intent is to settle the Mobility II preferred interests in cash, the ability to settle this instrument in AT&T shares will result in additional dilutive impact, the magnitude of which is influenced by the fair value of the Mobility II preferred interests and the average AT&T common stock price during the reporting period, which could vary from period-to-period. For these reasons, we have excluded the impact of ASU 2020-06 from our adjusted EPS calculation. The per share impact of ASU 2020-06 was to decrease reported diluted EPS $0.01 and $0.01 for the quarters ended March 31, 2023 and 2022, respectively. The Mobility II preferred interests were repurchased on April 5, 2023. |
Net Debt to Adjusted EBITDA - 2023 | |||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
June 30, | Sept. 30, | Dec. 31, | March 31, | Four Quarters | |||||||||||||||||||||||||
20221 |
20221 |
20221 |
2023 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 10,330 | $ | 10,714 | $ | 10,231 | $ | 10,589 | $ | 41,864 | |||||||||||||||||||
End-of-period current debt | 13,757 | ||||||||||||||||||||||||||||
End-of-period long-term debt | 123,727 | ||||||||||||||||||||||||||||
Total End-of-Period Debt | 137,484 | ||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 2,821 | ||||||||||||||||||||||||||||
Net Debt Balance | 134,663 | ||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 3.22 | ||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed January 25, 2023. | |||||||||||||||||||||||||||||
Net Debt to Adjusted EBITDA - 2022 | |||||||||||||||||||||||||||||
Dollars in millions | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
June 30, | Sept. 30, | Dec. 31, | March 31, | Four Quarters | |||||||||||||||||||||||||
20211 |
20221 |
20221 |
20221 |
||||||||||||||||||||||||||
Adjusted EBITDA | $ | 11,931 | $ | 10,803 | $ | 9,480 | $ | 10,190 | $ | 42,404 | |||||||||||||||||||
End-of-period current debt | 27,209 | ||||||||||||||||||||||||||||
End-of-period long-term debt | 148,820 | ||||||||||||||||||||||||||||
Total End-of-Period Debt | 176,029 | ||||||||||||||||||||||||||||
Less: Cash and Cash Equivalents | 17,084 | ||||||||||||||||||||||||||||
Net Debt Balance | 158,945 | ||||||||||||||||||||||||||||
Annualized Net Debt to Adjusted EBITDA Ratio | 3.75 | ||||||||||||||||||||||||||||
1As reported in AT&T's Form 8-K filed January 25, 2023. |
Supplemental Operational Measure | ||||||||||||||||||||||||||||||||
First Quarter | ||||||||||||||||||||||||||||||||
March 31, 2023 | March 31, 2022 | |||||||||||||||||||||||||||||||
Mobility | Business Wireline |
Adj.1 |
Business Solutions |
Mobility | Business Wireline |
Adj.1 |
Business Solutions |
Percent Change | ||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||
Wireless service | $ | 15,483 | $ | — | $ | (13,203) | $ | 2,280 | $ | 14,724 | $ | — | $ | (12,590) | $ | 2,134 | 6.8 | % | ||||||||||||||
Wireline service | — | 5,200 | — | 5,200 | — | 5,478 | — | 5,478 | (5.1) | % | ||||||||||||||||||||||
Wireless equipment | 5,099 | — | (4,326) | 773 | 5,351 | — | (4,452) | 899 | (14.0) | % | ||||||||||||||||||||||
Wireline equipment | — | 131 | — | 131 | — | 162 | — | 162 | (19.1) | % | ||||||||||||||||||||||
Total Operating Revenues | 20,582 | 5,331 | (17,529) | 8,384 | 20,075 | 5,640 | (17,042) | 8,673 | (3.3) | % | ||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||||
Operations and support | 12,213 | 3,623 | (10,196) | 5,640 | 12,327 | 3,702 | (10,169) | 5,860 | (3.8) | % | ||||||||||||||||||||||
EBITDA | 8,369 | 1,708 | (7,333) | 2,744 | 7,748 | 1,938 | (6,873) | 2,813 | (2.5) | % | ||||||||||||||||||||||
Depreciation and amortization | 2,098 | 1,330 | (1,712) | 1,716 | 2,059 | 1,299 | (1,698) | 1,660 | 3.4 | % | ||||||||||||||||||||||
Total Operating Expenses | 14,311 | 4,953 | (11,908) | 7,356 | 14,386 | 5,001 | (11,867) | 7,520 | (2.2) | % | ||||||||||||||||||||||
Operating Income | $ | 6,271 | $ | 378 | $ | (5,621) | $ | 1,028 | $ | 5,689 | $ | 639 | $ | (5,175) | $ | 1,153 | (10.8) | % | ||||||||||||||
Operating Income Margin | 12.3 | % | 13.3 | % | (100) | BP | ||||||||||||||||||||||||||
1Non-business wireless reported in the Communications segment under the Mobility business unit. |
||||||||||||||||||||||||||||||||
Results have been recast to conform to the current period's classification. |