AT&T Reports First-Quarter Results
AT&T reported first-quarter revenues of $38.1 billion, down 13.3% year-over-year, primarily due to divestitures. Diluted EPS decreased to $0.65 from $1.02 a year ago. However, the company achieved strong customer growth, adding 691,000 postpaid phone net adds, marking its best first quarter for this metric in over a decade. Cash from operations totaled $5.7 billion with free cash flow at $0.7 billion, down from $4.2 billion last year. The net debt increased by $12.8 billion, resulting in a net debt-to-adjusted EBITDA of 3.42x.
- Achieved 691,000 postpaid phone net adds, highest in a decade.
- Mobility revenues increased by 5.5%, reflecting strong service and equipment sales.
- Broadband revenues grew 6.8%, driven by 24.7% growth in fiber revenue.
- Total HBO Max and HBO subscribers reached 76.8 million, up 12.8 million year-over-year.
- Consolidated revenues decreased 13.3% from the prior year.
- Diluted EPS dropped to $0.65 from $1.02 in the year-ago quarter.
- Cash from operating activities fell by $4.2 billion year-over-year.
- Net debt increased by $12.8 billion sequentially.
First-Quarter Consolidated Results
-
Consolidated revenues of
$38.1 billion -
Diluted EPS of
$0.65 $1.02 -
Adjusted EPS of
$0.77 $0.85 -
Cash from operations of
$5.7 billion -
Capital expenditures of
$4.7 billion $6.3 billion -
Free cash flow3 of
$0.7 billion
Note: AT&T’s first-quarter earnings conference call will be webcast at
“Our momentum in growing customer relationships is reaching historical levels,” said
“AT&T has entered a new era, meeting this opportunistic moment from a position of flexibility and strength thanks to our evolving networks, enhanced customer experience, growing 5G and fiber customer base and a much stronger balance sheet. And we continue to make good consistent progress on our journey to becoming America’s best broadband provider.”
First-Quarter Highlights
Communications
-
Mobility:
- 691,000 postpaid phone net adds
- 965,000 postpaid net adds
- 113,000 prepaid phone net adds
-
Postpaid phone churn of
0.79% -
Revenues up
5.5% ; service revenues up4.8% ; equipment revenues up7.3% year over year -
Operating income of
$5.9 billion 3.2% year over year; EBITDA4 down1.8% -
Operating income margin of
29.2% ; EBITDA service margin553.7%
-
Business Wireline:
-
Operating income margin of
15.2% ; EBITDA margin4 in the high-30% range
-
Operating income margin of
-
Consumer Wireline:
-
289,000 AT&T Fiber net adds; penetration of
37% , up about 200-basis points -
Broadband revenues up
6.8% , due to fiber revenue growth of24.7% -
Broadband ARPU growth of
5.9%
-
289,000 AT&T Fiber net adds; penetration of
WarnerMedia
-
Total global HBO Max and
HBO subscribers6 of 76.8 million, up 12.8 million year over year; domestic subscribers7 of 48.6 million, up 4.4 million year over year
Consolidated Financial Results
Consolidated revenues for the first quarter totaled
Operating expenses were
Operating income was
Equity in net income (loss) of affiliates of
First-quarter net income attributable to common stock was
Cash from operating activities was
When excluding the impacts of WarnerMedia, Vrio and
Communications Operational Highlights
First-quarter revenues were
Mobility
-
Revenues were up
5.5% year over year to$20.1 billion $14.7 billion 4.8% year over year, driven by subscriber growth. Equipment revenues were$5.4 billion 7.3% year over year, driven by increased sales of higher priced smartphones. -
Operating expenses were
$14.2 billion 9.5% year over year due to higher equipment costs, 3G network shutdown costs, higher bad debt, higher HBO Max bundling costs, higher amortization of customer acquisition costs, elimination of CAFII government credits and higher FirstNet costs. -
Operating income was
$5.9 billion 3.2% year over year. Operating income margin was29.2% , compared to31.8% in the year-ago quarter. -
EBITDA was
$7.9 billion 1.8% year over year with EBITDA margin of39.4% , down from42.3% a year ago. EBITDA service margin was53.7% , compared to57.4% in the year-ago quarter. -
Total net adds were 5.5 million including:
-
965,000 postpaid net adds, which excludes impacts of the 3G network shutdown of 900,000 that were reflected as adjustments to the subscriber base consistent with historical practice, with:
- 691,000 postpaid phone net adds
- 62,000 postpaid tablet and other branded computing device net adds
- 212,000 other net adds
- 113,000 prepaid phone net adds
-
965,000 postpaid net adds, which excludes impacts of the 3G network shutdown of 900,000 that were reflected as adjustments to the subscriber base consistent with historical practice, with:
-
Postpaid churn was
0.94% versus0.93% in the year-ago quarter. -
Postpaid phone churn was
0.79% versus0.76% in the year-ago quarter. -
Prepaid churn was less than
3% , with Cricket substantially lower. -
Postpaid phone-only ARPU was
$54.00 0.2% versus the year-ago quarter, due to the impacts of promotional discount amortization.
Business Wireline
-
Revenues were
$5.6 billion 6.7% year over year due to lower demand for legacy voice and data services and a strategic decision to deemphasize non-core services. -
Operating expenses were
$4.8 billion 3.7% year over year due to ongoing operational cost efficiencies and lower amortization of deferred fulfillment costs, partially offset by higher depreciation costs. -
Operating income was
$0.9 billion 20.5% with operating income margin of15.2% , compared to17.9% in the year-ago quarter. -
EBITDA was
$2.2 billion 8.5% year over year with EBITDA margin of38.3% , compared to39.0% in the year-ago quarter. -
AT&T Business serves nearly 2.5 million customers, from the largest global companies and government agencies to small businesses. More than 675,000
U.S. business buildings are lit with fiber fromAT&T , enabling high-speed fiber connections to approximately 3 millionU.S. business customer locations. Nationwide, more than 9.5 million business customer locations are on or within 1,000 feet of our fiber.17
Consumer Wireline
-
Revenues were
$3.2 billion 2.0% year over year due to gains in broadband more than offsetting declines in legacy voice and data services and other services. Broadband revenues increased6.8% due to fiber growth of24.7% , partially offset by non-fiber revenue declines of5.3% . -
Operating expenses were
$2.8 billion 1.9% year over year largely driven by higher advertising costs and the elimination of CAFII government credits, partially offset by lower amortization of deferred fulfillment costs. -
Operating income was
$317 million 3.3% year over year with operating income margin of10.0% , compared to9.9% in the year-ago quarter. -
EBITDA was
$1.1 billion 1.3% year over year with EBITDA margin of34.3% , compared to34.5% in the year-ago quarter. - Total broadband gains, excluding DSL, were 5,000, reflecting AT&T Fiber net adds of 289,000, mostly offset by losses in non-fiber services. AT&T Fiber now has the ability to serve 17 million customer locations.
WarnerMedia Operational Highlights
-
Revenues for the first quarter were
$8.7 billion 2.5% versus the year-ago quarter, driven by higher subscription revenues and higher content and other revenues, partially offset by lower advertising revenues. Subscription revenues were$4.0 billion 4.4% , primarily reflecting growth of HBO Max. Content and Other revenues were$3.1 billion 3.4% , driven by higher theatrical revenues, higher HBO Max licensing, and partially offset by lower TV licensing. Advertising revenues were$1.7 billion 3.0% year over year due to lower linear audiences and tough comparisons to the prior-year political environment, partially offset by higher sports. -
Operating expenses totaled
$7.4 billion 13.0% year over year driven by higher marketing costs as well as higher programming costs and incremental selling costs associated with DIRECTV advertising revenue sharing arrangements. -
Operating contribution was
$1.3 billion 35.7% year over year. -
Operating income was
$1.3 billion 32.7% year over year, as a result of continued investments in HBO Max as well as in the launch of CNN+ at the end of the quarter and incremental advertising revenue sharing costs. Operating income margin was15.1% , compared to23.0% in the year-ago quarter. -
At the end of the quarter, there were 76.8 million global HBO Max and
HBO subscribers. Global HBO Max andHBO subscribers increased 12.8 million year over year and were up 3.0 million sequentially, primarily driven by international as well as domestic retail subscriber gains reflecting strength of the programming slate. At the end of the quarter, there were 48.6 million domestic HBO Max andHBO subscribers versus 44.2 million in the year-ago quarter, up 4.4 million year over year. Domestic subscriber ARPU18 was$11.24
Latin America Operational Highlights
Revenues were
Operating contribution was
Total wireless net adds were 141,000, including 178,000 prepaid net adds, 3,000 postpaid net adds and 40,000 reseller net losses.
1 Diluted EPS for the prior year quarter has been recast due to the adoption of Accounting Standards Update (ASU) No. 2020-06 in the first quarter of 2022 with retrospective application. Adjusted EPS for the prior year quarter has been recast for consistency to include gains on benefit-related and other cost investments. Further information is included in the Discussion and Reconciliation of Non-GAAP Measures included in our Form 8-K dated
2 Capital investment includes capital expenditures and cash paid for vendor financing (
3 Free cash flow is a non-GAAP financial measure that is frequently used by investors and credit rating agencies to provide relevant and useful information. Free cash flow is cash from operating activities of
4 EBITDA is operating income before depreciation and amortization. EBITDA margin is operating income before depreciation and amortization, divided by total revenues.
5 EBITDA service margin is operating income before depreciation and amortization, divided by total service revenues.
6 Global HBO Max and
7 Domestic HBO Max and
8 Operating Revenues, excluding impacts of the
9 Standalone AT&T results for 1Q22 reflects the historical operating results of the company excluding certain businesses (WarnerMedia,
10 Operating Revenues for standalone
11 Adjusted Operating Income is Operating Income adjusted for revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions. Adjusted Operating Income for 1Q22 of
12 Adjusted Operating Income, excluding impacts of the
13 Adjusted Operating Income of standalone
14 Adjusted equity in net income from DIRECTV investment is calculated as equity income from DIRECTV reported in Equity in Net Income (Loss) of Affiliates and excludes AT&T’s proportionate share of the noncash depreciation and amortization of fair value accretion from DIRECTV’s revaluation of assets and purchase price allocation
15 Net Debt to Adjusted EBITDA ratios are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt of
16 Standalone AT&T Cash from Operations of
17 The approximately 3 million
18 Domestic subscriber ARPU is defined as domestic HBO Max and
*About AT&T
We help more than 100 million
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the
Discussion and Reconciliation of Non-GAAP Measures
We believe the following measures are relevant and useful information to investors as they are part of
Free Cash Flow
Free cash flow is defined as cash from operations and cash distributions from DIRECTV classified as investing activities minus capital expenditures and cash paid for vendor financing (classified as financing activities). Free cash flow after dividends is defined as cash from operations and cash distributions from DIRECTV, minus capital expenditures, cash paid for vendor financing and dividends on common and preferred shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common and preferred shares to free cash flow. We believe these metrics provide useful information to our investors because management views free cash flow as an important indicator of how much cash is generated by routine business operations, including capital expenditures and vendor financing, and from our continued economic interest in the
Free Cash Flow and Free Cash Flow Dividend Payout Ratio |
||||||
Dollars in millions |
|
|||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
Net cash provided by operating activities1 |
$ |
5,732 |
|
$ |
9,927 |
|
Add: Distributions from DIRECTV classified as investing activities |
|
1,315 |
|
|
— |
|
Less: Capital expenditures |
|
(4,748 |
) |
|
(4,033 |
) |
Less: Cash paid for vendor financing |
|
(1,566 |
) |
|
(1,690 |
) |
Free Cash Flow |
|
733 |
|
|
4,204 |
|
|
|
|
||||
Less: Dividends paid |
|
(3,749 |
) |
|
(3,741 |
) |
Free Cash Flow after Dividends |
$ |
(3,016 |
) |
$ |
463 |
|
Free Cash Flow Dividend Payout Ratio |
|
511.5 |
% |
|
89.0 |
% |
1 |
Includes distributions from DIRECTV of |
Cash Paid for
In connection with capital improvements, we negotiate with some of our vendors to obtain favorable payment terms of 120 days or more, referred to as vendor financing, which are excluded from capital expenditures and reported in accordance with GAAP as financing activities. We present an additional view of cash paid for capital investment to provide investors with a comprehensive view of cash used to invest in our networks, product developments and support systems.
Cash Paid for |
|||||||
Dollars in millions |
|
|
|||||
|
First Quarter |
||||||
|
2022 |
2021 |
|||||
Capital Expenditures |
$ |
(4,748 |
) |
$ |
(4,033 |
) |
|
Cash paid for vendor financing |
|
(1,566 |
) |
|
(1,690 |
) |
|
Cash paid for |
$ |
(6,314 |
) |
$ |
(5,723 |
) |
|
EBITDA
Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For
EBITDA service margin is calculated as EBITDA divided by service revenues.
When discussing our segment, business unit and supplemental results, EBITDA excludes equity in net income (loss) of affiliates, and depreciation and amortization from operating contribution.
These measures are used by management as a gauge of our success in acquiring, retaining and servicing subscribers because we believe these measures reflect
We believe EBITDA Service Margin (EBITDA as a percentage of service revenues) to be a more relevant measure than EBITDA Margin (EBITDA as a percentage of total revenue) for our Mobility business unit operating margin. We also use wireless service revenues to calculate margin to facilitate comparison, both internally and externally with our wireless competitors, as they calculate their margins using wireless service revenues as well.
There are material limitations to using these non-GAAP financial measures. EBITDA, EBITDA margin and EBITDA service margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates. For market comparability, management analyzes performance measures that are similar in nature to EBITDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. EBITDA, EBITDA margin and EBITDA service margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.
EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||
Dollars in millions |
|
|||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
Net Income |
$ |
5,164 |
|
$ |
7,942 |
|
Additions: |
|
|
||||
Income Tax Expense |
|
1,443 |
|
|
2,122 |
|
Interest Expense |
|
1,722 |
|
|
1,870 |
|
Equity in Net (Income) Loss of Affiliates |
|
(501 |
) |
|
(52 |
) |
Other (Income) Expense - Net |
|
(2,187 |
) |
|
(4,221 |
) |
Depreciation and amortization |
|
5,539 |
|
|
5,809 |
|
EBITDA |
|
11,180 |
|
|
13,470 |
|
Merger and other costs |
|
364 |
|
|
37 |
|
Employee separation costs and benefit-related (gain) loss |
|
94 |
|
|
24 |
|
Adjusted EBITDA 1 |
$ |
11,638 |
|
$ |
13,531 |
|
1 |
See page 5 for additional discussion and reconciliation of adjusted items. |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||
Dollars in millions |
|
|||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
Communications Segment |
||||||
Operating Contribution |
$ |
7,029 |
|
$ |
7,431 |
|
Additions: |
|
|
||||
Depreciation and amortization |
|
4,124 |
|
|
4,054 |
|
EBITDA |
|
11,153 |
|
|
11,485 |
|
|
|
|
||||
Total Operating Revenues |
|
28,876 |
|
|
28,178 |
|
|
|
|
||||
Operating Income Margin |
|
24.3 |
% |
|
26.4 |
% |
EBITDA Margin |
|
38.6 |
% |
|
40.8 |
% |
Mobility |
||||||
Operating Contribution |
$ |
5,853 |
|
$ |
6,044 |
|
Additions: |
|
|
||||
Depreciation and amortization |
|
2,059 |
|
|
2,014 |
|
EBITDA |
|
7,912 |
|
|
8,058 |
|
|
|
|
||||
Total Operating Revenues |
|
20,075 |
|
|
19,034 |
|
Service Revenues |
|
14,724 |
|
|
14,048 |
|
|
|
|
||||
Operating Income Margin |
|
29.2 |
% |
|
31.8 |
% |
EBITDA Margin |
|
39.4 |
% |
|
42.3 |
% |
EBITDA Service Margin |
|
53.7 |
% |
|
57.4 |
% |
Business Wireline |
||||||
Operating Contribution |
$ |
859 |
|
$ |
1,080 |
|
Additions: |
|
|
||||
Depreciation and amortization |
|
1,299 |
|
|
1,278 |
|
EBITDA |
|
2,158 |
|
|
2,358 |
|
|
|
|
||||
Total Operating Revenues |
|
5,640 |
|
|
6,046 |
|
|
|
|
||||
Operating Income Margin |
|
15.2 |
% |
|
17.9 |
% |
EBITDA Margin |
|
38.3 |
% |
|
39.0 |
% |
Consumer Wireline |
||||||
Operating Contribution |
$ |
317 |
|
$ |
307 |
|
Additions: |
|
|
||||
Depreciation and amortization |
|
766 |
|
|
762 |
|
EBITDA |
|
1,083 |
|
|
1,069 |
|
|
|
|
||||
Total Operating Revenues |
|
3,161 |
|
|
3,098 |
|
|
|
|
||||
Operating Income Margin |
|
10.0 |
% |
|
9.9 |
% |
EBITDA Margin |
|
34.3 |
% |
|
34.5 |
% |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||
Dollars in millions |
|
|
||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
WarnerMedia Segment |
||||||
Operating Contribution |
$ |
1,306 |
|
$ |
2,030 |
|
Additions: |
|
|
||||
Equity in Net (Income) of Affiliates |
|
13 |
|
|
(70 |
) |
Depreciation and amortization |
|
127 |
|
|
163 |
|
EBITDA |
|
1,446 |
|
|
2,123 |
|
|
|
|
||||
Total Operating Revenues |
|
8,741 |
|
|
8,526 |
|
|
|
|
||||
Operating Income Margin |
|
15.1 |
% |
|
23.0 |
% |
EBITDA Margin |
|
16.5 |
% |
|
24.9 |
% |
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||
Dollars in millions |
|
|
||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
Latin America Segment |
||||||
Operating Contribution |
$ |
(102 |
) |
$ |
(173 |
) |
Additions: |
|
|
||||
Equity in Net (Income) of Affiliates |
|
— |
|
|
4 |
|
Depreciation and amortization |
|
161 |
|
|
262 |
|
EBITDA |
|
59 |
|
|
93 |
|
|
|
|
||||
Total Operating Revenues |
|
690 |
|
|
1,374 |
|
|
|
|
||||
Operating Income Margin |
|
-14.8 |
% |
|
-12.3 |
% |
EBITDA Margin |
|
8.6 |
% |
|
6.8 |
% |
|
|
|
||||
Operating Contribution |
$ |
(102 |
) |
$ |
(134 |
) |
Additions: |
|
|
||||
Equity in Net (Income) Loss of Affiliates |
|
— |
|
|
— |
|
Depreciation and amortization |
|
161 |
|
|
145 |
|
EBITDA |
|
59 |
|
|
11 |
|
|
|
|
||||
Total Operating Revenues |
|
690 |
|
|
631 |
|
|
|
|
||||
Operating Income Margin |
|
-14.8 |
% |
|
-21.2 |
% |
EBITDA Margin |
|
8.6 |
% |
|
1.7 |
% |
Adjusting Items
Adjusting items include revenues and costs we consider non-operational in nature, including items arising from asset acquisitions or dispositions. We also adjust for net actuarial gains or losses associated with our pension and postemployment benefit plans due to the often-significant impact on our results (we immediately recognize this gain or loss in the income statement, pursuant to our accounting policy for the recognition of actuarial gains and losses). Consequently, our adjusted results reflect an expected return on plan assets rather than the actual return on plan assets, as included in the GAAP measure of income. Prior periods have been recast for consistency to include gains on benefit-related and other cost investments.
The tax impact of adjusting items is calculated using the effective tax rate during the quarter except for adjustments that, given their magnitude, can drive a change in the effective tax rate, in these cases we use the actual tax expense or combined marginal rate of approximately
Adjusting Items |
||||||
Dollars in millions |
|
|||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
Operating Expenses |
|
|
||||
Transaction and other costs |
$ |
364 |
|
$ |
37 |
|
Employee separation costs and benefit-related (gain) loss |
|
94 |
|
|
24 |
|
Adjustments to Operations and Support Expenses |
|
458 |
|
|
61 |
|
Amortization of intangible assets |
|
971 |
|
|
1,131 |
|
Adjustments to Operating Expenses |
|
1,429 |
|
|
1,192 |
|
Other |
|
|
||||
DIRECTV intangible amortization (proportionate share) |
|
416 |
|
|
— |
|
Benefit-related (gain) loss, transaction financing costs and other |
|
169 |
|
|
(119 |
) |
Actuarial (gain) loss |
|
(1,053 |
) |
|
(2,844 |
) |
Adjustments to Income Before Income Taxes |
|
961 |
|
|
(1,771 |
) |
Tax impact of adjustments |
|
171 |
|
|
(490 |
) |
Tax-related items |
|
— |
|
|
118 |
|
Adjustments to Net Income |
$ |
790 |
|
$ |
(1,399 |
) |
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and Adjusted diluted EPS are non-GAAP financial measures calculated by excluding from operating revenues, operating expenses and income tax expense, certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairment, severance and other material gains and losses. Management believes that these measures provide 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 Operating Revenues, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA service margin and 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.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, and Adjusted EBITDA Margin |
||||||
Dollars in millions |
|
|||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
Operating Income |
$ |
5,641 |
|
$ |
7,661 |
|
Adjustments to Operating Expenses |
|
1,429 |
|
|
1,192 |
|
Adjusted Operating Income |
|
7,070 |
|
|
8,853 |
|
|
|
|
||||
EBITDA |
|
11,180 |
|
|
13,470 |
|
Adjustments to Operations and Support Expenses |
|
458 |
|
|
61 |
|
Adjusted EBITDA |
|
11,638 |
|
|
13,531 |
|
|
|
|
||||
Total Operating Revenues |
|
38,105 |
|
|
43,939 |
|
|
|
|
||||
Operating Income Margin |
|
14.8 |
% |
|
17.4 |
% |
Adjusted Operating Income Margin |
|
18.6 |
% |
|
20.1 |
% |
Adjusted EBITDA Margin |
|
30.5 |
% |
|
30.8 |
% |
Adjusted Diluted EPS |
||||||
|
First Quarter |
|||||
|
2022 |
2021 |
||||
Diluted Earnings Per Share (EPS) |
$ |
0.65 |
|
$ |
1.02 |
|
Amortization of intangible assets |
|
0.10 |
|
|
0.12 |
|
Transaction costs |
|
0.04 |
|
|
0.01 |
|
DIRECTV intangible amortization (proportionate share) |
|
0.04 |
|
|
— |
|
Actuarial (gain) loss 1 |
|
(0.11 |
) |
|
(0.29 |
) |
Benefit-related (gain) loss, employee separation costs and other 2 |
|
0.05 |
|
|
0.01 |
|
Tax-related items |
|
— |
|
|
(0.02 |
) |
Adjusted EPS |
$ |
0.77 |
|
$ |
0.85 |
|
Year-over-year growth - Adjusted |
|
-9.4 |
% |
|
||
Weighted Average Common Shares Outstanding with Dilution (000,000) |
|
7,556 |
|
|
7,482 |
|
1 |
Includes adjustments for actuarial gains or losses associated with our pension benefit plan, which we immediately recognize in the income statement, pursuant to our accounting policy for the recognition of actuarial gains/losses. We recorded total net actuarial gain of |
2 |
As of |
Net Debt to Adjusted EBITDA
Net Debt to EBITDA ratios are non-GAAP financial measures frequently used by investors and credit rating agencies and management believes these measures provide relevant and useful information to investors and other users of our financial data. Our Net Debt to Adjusted EBITDA ratio is calculated by dividing the Net Debt by the sum of the most recent four quarters Adjusted EBITDA. Net Debt is calculated by subtracting cash and cash equivalents and certificates of deposit and time deposits that are greater than 90 days, from the sum of debt maturing within one year and long-term debt.
Net Debt to Adjusted EBITDA - 2022 |
||||||||||||||
Dollars in millions |
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
Four Quarters |
|||||
|
2021 1 |
|
2021 1 |
|
2021 1 |
|
2022 |
|
||||||
Adjusted EBITDA |
$ |
13,514 |
|
$ |
13,015 |
|
$ |
11,282 |
|
$ |
11,638 |
|
$ |
49,449 |
End-of-period current debt |
|
|
|
|
|
|
|
|
|
27,333 |
||||
End-of-period long-term debt |
|
|
|
|
|
|
|
|
|
180,225 |
||||
Total End-of-Period Debt |
|
|
|
|
|
|
|
|
|
207,558 |
||||
Less: Cash and Cash Equivalents |
|
|
|
|
|
|
|
|
|
38,565 |
||||
Net Debt Balance |
|
|
|
|
|
|
|
|
|
168,993 |
||||
Annualized Net Debt to Adjusted EBITDA Ratio 2 |
|
|
|
|
|
|
|
|
|
3.42 |
||||
1 |
As reported in |
2 |
Annualized Net Debt to Adjusted EBITDA Ratio of 3.59 when adjusted to remove the impacts for Video and Vrio EBITDA of |
| Net Debt to Adjusted EBITDA - 2021 | ||||||||||||||
Dollars in millions |
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
Four Quarters |
|||||
|
2020 1 |
|
2020 1 |
|
2020 1 |
|
2021 1 |
|
||||||
Adjusted EBITDA |
$ |
14,112 |
|
$ |
13,313 |
|
$ |
12,889 |
|
$ |
13,531 |
|
$ |
53,845 |
End-of-period current debt |
|
|
|
|
|
|
|
|
|
19,505 |
||||
End-of-period long-term debt |
|
|
|
|
|
|
|
|
|
160,694 |
||||
Total End-of-Period Debt |
|
|
|
|
|
|
|
|
|
180,199 |
||||
Less: Cash and Cash Equivalents |
|
|
|
|
|
|
|
|
|
11,342 |
||||
Net Debt Balance |
|
|
|
|
|
|
|
|
|
168,857 |
||||
Annualized Net Debt to Adjusted EBITDA Ratio |
|
|
|
|
|
|
|
|
|
3.14 |
||||
1 |
As reported in |
Supplemental Operational Measures
We provide a supplemental discussion of our business solutions operations that is calculated by combining our Mobility and Business Wireline operating units, and then adjusting to remove non-business operations. The following table presents a reconciliation of our supplemental Business Solutions results.
|
|
|
|
|
|
|
|
|
|
||||||||||
Supplemental Operational Measures |
|||||||||||||||||||
|
First Quarter |
||||||||||||||||||
|
|
|
|
||||||||||||||||
|
Mobility |
Business Wireline |
Adjustments1 |
Business Solutions |
|
Mobility |
Business Wireline |
Adjustments1 |
Business Solutions |
||||||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Wireless service |
$ |
14,724 |
$ |
— |
$ |
(12,590 |
) |
$ |
2,134 |
|
$ |
14,048 |
$ |
— |
$ |
(12,079 |
) |
$ |
1,969 |
Wireline service |
|
— |
|
5,478 |
|
— |
|
|
5,478 |
|
|
— |
|
5,872 |
|
— |
|
|
5,872 |
Wireless equipment |
|
5,351 |
|
— |
|
(4,452 |
) |
|
899 |
|
|
4,986 |
|
— |
|
(4,196 |
) |
|
790 |
Wireline equipment |
|
— |
|
162 |
|
— |
|
|
162 |
|
|
— |
|
174 |
|
— |
|
|
174 |
Total Operating Revenues |
|
20,075 |
|
5,640 |
|
(17,042 |
) |
|
8,673 |
|
|
19,034 |
|
6,046 |
|
(16,275 |
) |
|
8,805 |
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Operations and support |
|
12,163 |
|
3,482 |
|
(10,037 |
) |
|
5,608 |
|
|
10,976 |
|
3,688 |
|
(9,145 |
) |
|
5,519 |
EBITDA |
|
7,912 |
|
2,158 |
|
(7,005 |
) |
|
3,065 |
|
|
8,058 |
|
2,358 |
|
(7,130 |
) |
|
3,286 |
Depreciation and amortization |
|
2,059 |
|
1,299 |
|
(1,698 |
) |
|
1,660 |
|
|
2,014 |
|
1,278 |
|
(1,678 |
) |
|
1,614 |
Total Operating Expenses |
|
14,222 |
|
4,781 |
|
(11,735 |
) |
|
7,268 |
|
|
12,990 |
|
4,966 |
|
(10,823 |
) |
|
7,133 |
Operating Income |
|
5,853 |
|
859 |
|
(5,307 |
) |
|
1,405 |
|
|
6,044 |
|
1,080 |
|
(5,452 |
) |
|
1,672 |
Equity in Net Income (Loss) of Affiliates |
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
Operating Contribution |
$ |
5,853 |
$ |
859 |
$ |
(5,307 |
) |
$ |
1,405 |
|
$ |
6,044 |
$ |
1,080 |
$ |
(5,452 |
) |
$ |
1,672 |
1 |
Non-business wireless reported in the Communication segment under the Mobility business unit. |
Results have been recast to conform to the current period's classification. |
© 2022 AT&T Intellectual Property. All rights reserved.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220420006225/en/
Phone: (214) 912-8541
Email: fletcher.cook@att.com
Phone: (214) 202-6630
Email: brittany.a.siwald@att.com
Source:
FAQ
What were AT&T's first-quarter revenues for 2022?
What is the diluted EPS reported by AT&T in the first quarter of 2022?
How many postpaid phone net adds did AT&T achieve in Q1 2022?
What was AT&T’s free cash flow in the first quarter of 2022?
What is the net debt-to-adjusted EBITDA ratio for AT&T at the end of Q1 2022?
