DALLAS--(BUSINESS WIRE)--AT&T Inc. (NYSE:T) reported that for the full-year, the company met or exceeded its 2019 guidance and delivered record operating and free cash flow.
Solid operating results in the fourth quarter included strong operating and free cash flow and adjusted earnings growth.
“We delivered what we promised in 2019 and we begin this year with strong momentum in wireless, with HBO Max set to launch in May and our share retirement plan well underway,” said Randall Stephenson, AT&T chairman and CEO. “Our 2020 outlook positions us to deliver meaningful progress on our 3-year financial and capital allocation plans as we continue to invest in growth opportunities and create value for our owners, as we did last year.”
Fourth-Quarter Highlights
Communications
-
Mobility:
- Service revenues up 1.8% in 4Q and 1.9% for full year; total wireless revenues (including equipment) up 0.8% in 4Q and for full year
- Operating income up 1.5% with EBITDA up 0.8%
- 229,000 postpaid phone net adds; nearly 1 million total phone net adds for full year (483,000 postpaid, 506,000 prepaid)
- FirstNet coverage more than 75% completed
-
Entertainment Group:
- Full-year EBITDA stable versus prior year
- Solid video and broadband ARPU gains
-
Video subs impacted by focus on long-term value customer base:
- 19.5 million premium TV subscribers – 945,000 net loss
- AT&T TV NOW subscribers – 219,000 net loss
- 191,000 AT&T Fiber net adds; IP broadband revenue growth of 2.7%
-
Business Wireline:
- Sequential revenue growth of $86 million; down 1.7% in 4Q
WarnerMedia
- Foregone content licensing revenue in preparation for HBO Max launch impacted revenues and operating income
- Turner revenues up 1.6% with subscription revenue gains
- Home Box Office revenues up 1.9% with gains in digital subscribers
- 6 Golden Globe® awards, the most of any media company; 12 Academy Award® nominations
Latin America
- Mexico operating loss improves by nearly $200 million; EBITDA positive for the first time since acquisitions
Consolidated Financial Results
AT&T's consolidated revenues for the fourth quarter totaled $46.8 billion (~$48.0 billion excluding HBO Max investment) versus $48.0 billion in the year-ago quarter. Growth in domestic wireless services and strategic and managed business services revenues partially offset declines in revenues from domestic video, legacy wireline services and WarnerMedia. Without the impact of foreign exchange pressures and HBO Max investments in the form of foregone WarnerMedia content licensing revenues, consolidated revenues would have increased in both the fourth quarter and the full year.
Operating expenses were $41.5 billion versus $41.8 billion in the year-ago quarter, down 0.8% due to lower Entertainment Group costs, lower intangible asset amortization and cost efficiencies, partially offset by the write-off of certain copper facilities.
Operating income was $5.3 billion versus $6.2 billion in the year-ago quarter, due to a $1.3 billion write-off of certain copper facilities, with operating income margin of 11.4% versus 12.8%. When adjusting for amortization, merger- and integration-related expenses, write-off of certain copper facilities and other items, operating income was $9.2 billion versus $9.4 billion in the year-ago quarter, and operating income margin was 19.6%, the same as the year-ago quarter.
Fourth-quarter net income attributable to common stock was $2.4 billion, or $0.33 per diluted common share, versus $4.9 billion, or $0.66 per diluted common share, in the year-ago quarter. Adjusting for $0.56, which includes merger-amortization costs, the write-off of certain copper facilities, a non-cash actuarial loss on benefit plans, merger- and integration-related expenses and other items, earnings per diluted common share was $0.89 compared to an adjusted $0.86 in the year-ago quarter.
Cash from operating activities was $11.9 billion, and capital expenditures were $3.8 billion. Capital investment – which consists of capital expenditures plus cash payments for vendor financing – totaled $4.2 billion, which includes about $450 million of cash payments for vendor financing and $900 million of FirstNet reimbursements. Free cash flow – cash from operating activities minus capital expenditures – was $8.2 billion for the quarter.
The company completed or announced about $9 billion in non-core asset monetizations in the fourth quarter. For the full year, the company closed about $18 billion of net asset monetizations, including working capital initiatives. Net debt was reduced by $7.6 billion in the quarter and reduced by $20.3 billion for the full year. Net-debt-to-adjusted EBITDA at the end of the fourth quarter was about 2.5x.
In addition to its investments to further improve and expand operations, AT&T continues to use its cash to return substantial value to shareholders through dividends and share retirements. In the fourth quarter, dividends paid totaled $3.7 billion. During the fourth quarter, AT&T began retiring shares under its outstanding share repurchase authorization. In the quarter, the company repurchased 51 million of its common shares for $2.0 billion.
Full-Year Results
For full-year 2019 when compared with 2018 results, AT&T's consolidated revenues totaled $181.2 billion versus $170.8 billion. The increase in revenues from a full year of Time Warner (which includes lower Warner Bros. theatrical revenues in second half of 2019) and growth in domestic wireless services, strategic and managed services and IP broadband revenues, were partially offset by declines in revenues from legacy wireline services and video. Operating expenses were $153.2 billion compared with $144.7 billion, primarily due to a full year of Time Warner (which includes lower Warner Bros. second-half 2019 costs) and the write-off of certain copper facilities, partially offset by lower Entertainment Group costs, lower domestic wireless equipment costs, lower intangible asset amortization, and cost efficiencies.
Versus results from 2018, operating income was $28.0 billion, up 7.1% primarily due to a full year of Time Warner in 2019, partially offset by the write-off of certain copper facilities; and operating income margin was 15.4% versus 15.3%. With adjustments for both years, operating income was $38.6 billion versus $35.2 billion in 2018, and operating income margin was 21.3% versus 20.6%.
2019 net income attributable to common stock was $13.9 billion, or $1.89 per diluted common share, versus $19.4 billion, or $2.85 per diluted common share in 2018. With adjustments for both years, earnings per diluted common share was $3.57 compared to $3.52 in 2018.
AT&T's full-year cash from operating activities was $48.7 billion versus $43.6 billion in 2018. Gross capital investment – which includes capital expenditures, cash payments for vendor financing and FirstNet spending – was $23.7 billion. Capital investment – which consists of capital expenditures plus cash payments for vendor financing – totaled $22.7 billion, which includes $3 billion of cash payments for vendor financing. Full-year free cash flow was $29.0 billion compared to $22.4 billion in 2018, up 30%. The company’s free cash flow dividend payout ratio for the full year was 51%.3
2020 Outlook5
AT&T reaffirms 2020 guidance:
- Revenue growth: of 1% to 2%;
- Adjusted EPS growth: $3.60 to $3.70, including HBO Max investment;
- Adjusted EBITDA margin7: Stable with 2019;
- Free cash flow in $28 billion range;
- Dividend payout ratio: In low ‘50s% range3;
- Gross capital investment: In $20 billion range4;
- Monetization of assets: net $5 billion to $10 billion
3-Year Financial Guidance and Capital Allocation Plan
- Adjusted EPS growth5: $4.50 to $4.80 by 2022; includes HBO Max investment
- Revenue growth every year: 1% to 2% three-year CAGR6
- Adjusted EBITDA7 margin expansion: By 2022, 200 bps higher than 2019 levels; targeting 35% margins in 2022
- Free cash flow: $30 billion - $32 billion in 2022
- Dividend growth: Continued modest annual increases; dividends as % of free cash flow – less than 50% range3 in 2022
- Capital allocation: 50% - 70% of free cash flow post-dividends for retiring ~70% of shares issued for Time Warner deal
- Debt: Pay off 100% of acquisition debt from Time Warner deal; net-debt-to-adjusted EBITDA1 ratio of 2.0x to 2.25x in 2022
- No major acquisitions
5Adjustments to 2020 and 2022 EPS include merger-related amortization for the three-year period in the range of $17.0 billion ($6.5 billion range for 2020), a non-cash mark-to-market benefit plan gain/loss, merger integration and other adjustments. We expect the mark-to-market adjustment which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. Our 2022 EPS estimate assumes share retirements of approximately 40 cents, new cost-reduction initiatives and EBITDA growth in our Mexico operations of a combined 25 cents, WarnerMedia synergies of approximately 20 cents and organic growth opportunities, that we expect to be partially offset by dilution from HBO Max. Our EPS, adjusted EBITDA and free cash flow estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between our non-GAAP metrics and the reported GAAP metrics without unreasonable effort.
1Net 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 by the sum of the most recent four quarters Adjusted EBITDA.
2 America’s Best Network based on GWS OneScore Sept. 2019; Nation’s fastest network based on analysis by Ookla® of Speedtest Intelligence® data average download speeds for Q4 2019. Ookla trademarks used under license and reprinted with permission.
3Free cash flow dividend payout ratio is common share dividends divided by free cash flow
4Gross capital investment includes capital expenditures and cash payments for vendor financing and excludes expected FirstNet reimbursements; in 2019, gross capital investment included $1.0 billion of FirstNet reimbursements; in 2020, vendor financing is expected to be about $3 billion range and FirstNet reimbursements are expected to be about $1 billion
6Compound annual growth rate
7EBITDA margin is operating income before depreciation and amortization, divided by total revenues
*About AT&T
AT&T Inc. (NYSE:T) is a diversified, global leader in telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands including: HBO, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim, Turner Classic Movies and others. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband services. Plus, it serves nearly 3 million business customers with high-speed, highly secure connectivity and smart solutions. AT&T Latin America provides pay-TV services across 11 countries and territories in Latin America and the Caribbean, and is the fastest growing wireless provider in Mexico, serving consumers and businesses. Xandr provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its AppNexus platform.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. © 2020 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
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 Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at https://investors.att.com.
Discussion and Reconciliation of Non-GAAP Measures
We believe the following measures are relevant and useful information to investors as they are part of AT&T's internal management reporting and planning processes and are important metrics that management uses to evaluate the operating performance of AT&T and its segments. Management also uses these measures as a method of comparing performance with that of many of our competitors. These measures should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles (GAAP).
Free Cash Flow
Free cash flow is defined as cash from operations minus capital expenditures. Free cash flow after dividends is defined as cash from operations minus capital expenditures and dividends on common shares. Free cash flow dividend payout ratio is defined as the percentage of dividends paid on common 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 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.
Free Cash Flow and Free Cash Flow Dividend Payout Ratio |
||||||||||||
Dollars in millions |
|
|
|
|||||||||
|
|
Fourth Quarter |
|
Year Ended |
||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||
Net cash provided by operating activities |
$ |
11,943 |
|
$ |
12,080 |
|
$ |
48,668 |
|
$ |
43,602 |
|
Less: Capital expenditures |
|
(3,792 |
) |
|
(4,152 |
) |
|
(19,635 |
) |
|
(21,251 |
) |
Free Cash Flow |
|
8,151 |
|
|
7,928 |
|
|
29,033 |
|
|
22,351 |
|
|
|
|
|
|
|
|
|
|
||||
Less: Dividends paid on common shares |
|
(3,726 |
) |
|
(3,635 |
) |
|
(14,888 |
) |
|
(13,410 |
) |
Free Cash Flow after Dividends |
$ |
4,425 |
|
$ |
4,293 |
|
$ |
14,145 |
|
$ |
8,941 |
|
Free Cash Flow Dividend Payout Ratio |
|
45.7 |
% |
|
45.9 |
% |
|
51.3 |
% |
|
60.0 |
% |
Cash Paid for Capital Investment
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 Capital Investment |
||||||||||||||
Dollars in millions |
|
|
|
|
||||||||||
|
|
Fourth Quarter |
|
|
Year Ended |
|||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
Capital Expenditures |
$ |
(3,792 |
) |
$ |
(4,152 |
) |
|
$ |
(19,635 |
) |
$ |
(21,251 |
) |
|
Cash paid for vendor financing |
|
(449 |
) |
|
(213 |
) |
|
|
(3,050 |
) |
|
(560 |
) |
|
Cash paid for Capital Investment1 |
$ |
(4,241 |
) |
$ |
(4,365 |
) |
|
$ |
(22,685 |
) |
$ |
(21,811 |
) |
|
1 Gross capital investment excludes FirstNet reimbursements of $900 million in the fourth quarter and $1.0 billion for the year ended December 31, 2019. |
||||||||||||||
EBITDA
Our calculation of EBITDA, as presented, may differ from similarly titled measures reported by other companies. For AT&T, EBITDA excludes other income (expense) – net, and equity in net income (loss) of affiliates, as these do not reflect the operating results of our subscriber base or operations that are not under our control. Equity in net income (loss) of affiliates represents the proportionate share of the net income (loss) of affiliates in which we exercise significant influence, but do not control. Because we do not control these entities, management excludes these results when evaluating the performance of our primary operations. EBITDA also excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with our capital and tax structures. Finally, EBITDA excludes depreciation and amortization in order to eliminate the impact of capital investments. EBITDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. EBITDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with U.S. generally accepted accounting principles (GAAP).
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 AT&T's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing operating performance with that of many of its competitors. The financial and operating metrics which affect EBITDA include the key revenue and expense drivers for which management is responsible and upon which we evaluate performance.
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 |
|
|
|
|||||||||||
|
|
Fourth Quarter |
|
Year Ended |
||||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
Net Income |
$ |
2,704 |
|
$ |
5,130 |
|
|
$ |
14,975 |
|
$ |
19,953 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Income Tax Expense |
|
434 |
|
|
615 |
|
|
|
3,493 |
|
|
4,920 |
|
|
Interest Expense |
|
2,049 |
|
|
2,112 |
|
|
|
8,422 |
|
|
7,957 |
|
|
Equity in Net (Income) Loss of Affiliates |
|
30 |
|
|
(23 |
) |
|
|
(6 |
) |
|
48 |
|
|
Other (Income) Expense - Net |
|
104 |
|
|
(1,674 |
) |
|
|
1,071 |
|
|
(6,782 |
) |
|
Depreciation and amortization |
|
6,961 |
|
|
7,892 |
|
|
|
28,217 |
|
|
28,430 |
|
|
EBITDA |
|
12,282 |
|
|
14,052 |
|
|
|
56,172 |
|
|
54,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
46,821 |
|
|
47,993 |
|
|
|
181,193 |
|
|
170,756 |
|
|
Service Revenues |
|
41,475 |
|
|
42,496 |
|
|
|
163,499 |
|
|
152,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EBITDA Margin |
|
26.2 |
% |
|
29.3 |
% |
|
|
31.0 |
% |
|
31.9 |
% |
|
EBITDA Service Margin |
|
29.6 |
% |
|
33.1 |
% |
|
|
34.4 |
% |
|
35.8 |
% |
|
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||||||||||
Dollars in millions |
|
|
|
|
|
|||||||||
|
|
Fourth Quarter |
|
|
Year Ended |
|
||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
Communications Segment |
|
|
|
|
|
|
|
|
|
|
||||
Operating Contribution |
$ |
7,511 |
|
$ |
7,607 |
|
|
$ |
32,229 |
|
$ |
32,105 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) Loss of Affiliates |
|
1 |
|
|
- |
|
|
|
1 |
|
|
3 |
|
|
Depreciation and amortization |
|
4,589 |
|
|
4,568 |
|
|
|
18,329 |
|
|
18,292 |
|
|
EBITDA |
|
12,101 |
|
|
12,175 |
|
|
|
50,559 |
|
|
50,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
36,522 |
|
|
37,223 |
|
|
|
142,359 |
|
|
143,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
20.6 |
% |
|
20.4 |
% |
|
|
22.6 |
% |
|
22.3 |
% |
|
EBITDA Margin |
|
33.1 |
% |
|
32.7 |
% |
|
|
35.5 |
% |
|
35.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mobility |
||||||||||||||
Operating Contribution |
$ |
5,503 |
|
$ |
5,424 |
|
|
$ |
22,320 |
|
$ |
21,568 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) of Affiliates |
|
- |
|
|
- |
|
|
|
1 |
|
|
- |
|
|
Depreciation and amortization |
|
2,027 |
|
|
2,045 |
|
|
|
8,054 |
|
|
8,263 |
|
|
EBITDA |
|
7,530 |
|
|
7,469 |
|
|
|
30,375 |
|
|
29,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
18,700 |
|
|
18,556 |
|
|
|
71,056 |
|
|
70,521 |
|
|
Service Revenues |
|
13,948 |
|
|
13,700 |
|
|
|
55,331 |
|
|
54,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
29.4 |
% |
|
29.2 |
% |
|
|
31.4 |
% |
|
30.6 |
% |
|
EBITDA Margin |
|
40.3 |
% |
|
40.3 |
% |
|
|
42.7 |
% |
|
42.3 |
% |
|
EBITDA Service Margin |
|
54.0 |
% |
|
54.5 |
% |
|
|
54.9 |
% |
|
54.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Entertainment Group |
||||||||||||||
Operating Contribution |
$ |
745 |
|
$ |
825 |
|
|
$ |
4,822 |
|
$ |
4,713 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) Loss of Affiliates |
|
1 |
|
|
1 |
|
|
|
- |
|
|
2 |
|
|
Depreciation and amortization |
|
1,298 |
|
|
1,329 |
|
|
|
5,276 |
|
|
5,315 |
|
|
EBITDA |
|
2,044 |
|
|
2,155 |
|
|
|
10,098 |
|
|
10,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
11,233 |
|
|
11,962 |
|
|
|
45,126 |
|
|
46,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
6.6 |
% |
|
6.9 |
% |
|
|
10.7 |
% |
|
10.1 |
% |
|
EBITDA Margin |
|
18.2 |
% |
|
18.0 |
% |
|
|
22.4 |
% |
|
21.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Business Wireline |
||||||||||||||
Operating Contribution |
$ |
1,263 |
|
$ |
1,358 |
|
|
$ |
5,087 |
|
$ |
5,824 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) Loss of Affiliates |
|
- |
|
|
(1 |
) |
|
|
- |
|
|
1 |
|
|
Depreciation and amortization |
|
1,264 |
|
|
1,194 |
|
|
|
4,999 |
|
|
4,714 |
|
|
EBITDA |
|
2,527 |
|
|
2,551 |
|
|
|
10,086 |
|
|
10,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
6,589 |
|
|
6,705 |
|
|
|
26,177 |
|
|
26,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
19.2 |
% |
|
20.2 |
% |
|
|
19.4 |
% |
|
21.8 |
% |
|
EBITDA Margin |
|
38.4 |
% |
|
38.0 |
% |
|
|
38.5 |
% |
|
39.4 |
% |
|
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||||||||||
Dollars in millions |
|
|
|
|
|
|||||||||
|
|
Fourth Quarter |
|
|
Year Ended |
|
||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
WarnerMedia Segment |
||||||||||||||
Operating Contribution |
$ |
2,447 |
|
$ |
2,703 |
|
|
$ |
9,326 |
|
$ |
5,695 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) of Affiliates |
|
(25 |
) |
|
(80 |
) |
|
|
(162 |
) |
|
(25 |
) |
|
Depreciation and amortization |
|
154 |
|
|
139 |
|
|
|
538 |
|
|
305 |
|
|
EBITDA |
|
2,576 |
|
|
2,762 |
|
|
|
9,702 |
|
|
5,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
8,924 |
|
|
9,232 |
|
|
|
33,499 |
|
|
18,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
27.1 |
% |
|
28.4 |
% |
|
|
27.4 |
% |
|
29.9 |
% |
|
EBITDA Margin |
|
28.9 |
% |
|
29.9 |
% |
|
|
29.0 |
% |
|
31.5 |
% |
|
Segment and Business Unit EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||||||||||
Dollars in millions |
|
|
|
|
|
|||||||||
|
|
Fourth Quarter |
|
|
Year Ended |
|
||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
Latin America Segment |
|
|
|
|
|
|
|
|
|
|
||||
Operating Contribution |
$ |
(87 |
) |
$ |
(248 |
) |
|
$ |
(635 |
) |
$ |
(710 |
) |
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) of Affiliates |
|
(2 |
) |
|
(10 |
) |
|
|
(27 |
) |
|
(34 |
) |
|
Depreciation and amortization |
|
294 |
|
|
296 |
|
|
|
1,162 |
|
|
1,238 |
|
|
EBITDA |
|
205 |
|
|
38 |
|
|
|
500 |
|
|
494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
1,758 |
|
|
1,843 |
|
|
|
6,963 |
|
|
7,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
-5.1 |
% |
|
-14.0 |
% |
|
|
-9.5 |
% |
|
-9.7 |
% |
|
EBITDA Margin |
|
11.7 |
% |
|
2.1 |
% |
|
|
7.2 |
% |
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vrio |
|
|
|
|
|
|
|
|
|
|
||||
Operating Contribution |
$ |
40 |
|
$ |
66 |
|
|
$ |
83 |
|
$ |
347 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) of Affiliates |
|
(2 |
) |
|
(10 |
) |
|
|
(27 |
) |
|
(34 |
) |
|
Depreciation and amortization |
|
164 |
|
|
169 |
|
|
|
660 |
|
|
728 |
|
|
EBITDA |
|
202 |
|
|
225 |
|
|
|
716 |
|
|
1,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
982 |
|
|
1,074 |
|
|
|
4,094 |
|
|
4,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
3.9 |
% |
|
5.2 |
% |
|
|
1.4 |
% |
|
6.5 |
% |
|
EBITDA Margin |
|
20.6 |
% |
|
20.9 |
% |
|
|
17.5 |
% |
|
21.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mexico |
|
|
|
|
|
|
|
|
|
|
||||
Operating Contribution |
$ |
(127 |
) |
$ |
(314 |
) |
|
$ |
(718 |
) |
$ |
(1,057 |
) |
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) Loss of Affiliates |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
Depreciation and amortization |
|
130 |
|
|
127 |
|
|
|
502 |
|
|
510 |
|
|
EBITDA |
|
3 |
|
|
(187 |
) |
|
|
(216 |
) |
|
(547 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
776 |
|
|
769 |
|
|
|
2,869 |
|
|
2,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
-16.4 |
% |
|
-40.8 |
% |
|
|
-25.0 |
% |
|
-36.9 |
% |
|
EBITDA Margin |
|
0.4 |
% |
|
-24.3 |
% |
|
|
-7.5 |
% |
|
-19.1 |
% |
|
Segment EBITDA, EBITDA Margin and EBITDA Service Margin |
||||||||||||||
Dollars in millions |
|
|
|
|
|
|||||||||
|
|
Fourth Quarter |
|
|
Year Ended |
|
||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
Xandr |
|
|
|
|
|
|
|
|
|
|
||||
Operating Contribution |
$ |
413 |
|
$ |
381 |
|
|
$ |
1,318 |
|
$ |
1,333 |
|
|
Additions: |
|
|
|
|
|
|
|
|
|
|
||||
Equity in Net (Income) of Affiliates |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
Depreciation and amortization |
|
17 |
|
|
5 |
|
|
|
58 |
|
|
9 |
|
|
EBITDA |
|
430 |
|
|
386 |
|
|
|
1,376 |
|
|
1,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
607 |
|
|
566 |
|
|
|
2,022 |
|
|
1,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
68.0 |
% |
|
67.3 |
% |
|
|
65.2 |
% |
|
76.6 |
% |
|
EBITDA Margin |
|
70.8 |
% |
|
68.2 |
% |
|
|
68.1 |
% |
|
77.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusting Items
Adjusting items include revenues and costs we consider non-operational in nature, such as 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.
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 25%.
Adjusting Items |
|||||||||||||
Dollars in millions |
|
|
|
||||||||||
|
|
Fourth Quarter |
|
Year Ended |
|||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
||||
Time Warner merger adjustment |
$ |
- |
|
$ |
49 |
|
|
$ |
72 |
|
$ |
49 |
|
Adjustments to Operating Revenues |
|
- |
|
|
49 |
|
|
|
72 |
|
|
49 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
||||
Time Warner and other merger costs |
|
382 |
|
|
436 |
|
|
|
961 |
|
|
1,228 |
|
Employee separation costs |
|
243 |
|
|
327 |
|
|
|
624 |
|
|
587 |
|
Asset abandonments and impairments |
|
1,458 |
|
|
46 |
|
|
|
1,458 |
|
|
46 |
|
Natural disaster costs |
|
- |
|
|
77 |
|
|
|
- |
|
|
181 |
|
Holding losses on benefit-related investments |
|
- |
|
|
42 |
|
|
|
- |
|
|
42 |
|
Adjustments to Operations and Support Expenses |
|
2,083 |
|
|
928 |
|
|
|
3,043 |
|
|
2,084 |
|
Amortization of intangible assets |
|
1,741 |
|
|
2,261 |
|
|
|
7,460 |
|
|
6,930 |
|
Impairments |
|
43 |
|
|
26 |
|
|
|
43 |
|
|
26 |
|
Adjustments to Operating Expenses |
|
3,867 |
|
|
3,215 |
|
|
|
10,546 |
|
|
9,040 |
|
Other |
|
|
|
|
|
|
|
|
|
||||
Merger-related interest and fees1 |
|
- |
|
|
- |
|
|
|
- |
|
|
1,029 |
|
(Gains) losses on sale of investments |
|
(69 |
) |
|
(451 |
) |
|
|
(707 |
) |
|
(808 |
) |
Special termination charges, debt redemption costs and other adjustments |
|
331 |
|
|
307 |
|
|
|
693 |
|
|
385 |
|
Actuarial (gain) loss |
|
1,123 |
|
|
(686 |
) |
|
|
5,171 |
|
|
(3,412 |
) |
Adjustments to Income Before Income Taxes |
|
5,252 |
|
|
2,434 |
|
|
|
15,775 |
|
|
6,283 |
|
Tax impact of adjustments |
|
1,119 |
|
|
412 |
|
|
|
3,302 |
|
|
1,177 |
|
Tax-related items |
|
- |
|
|
601 |
|
|
|
141 |
|
|
505 |
|
Adjustments to Net Income |
$ |
4,133 |
|
$ |
1,421 |
|
|
$ |
12,332 |
|
$ |
4,601 |
|
1 Includes interest expense incurred on debt issued, redemption premiums and interest income earned on cash held prior to the close of merger transactions. |
|||||||||||||
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. 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. AT&T's calculation of Adjusted items, as presented, may differ from similarly titled measures reported by other companies.
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA Service Margin |
||||||||||||||
Dollars in millions |
|
|
|
|
||||||||||
|
|
Fourth Quarter |
|
Year Ended |
|
|||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
Operating Income |
$ |
5,321 |
|
$ |
6,160 |
|
|
$ |
27,955 |
|
$ |
26,096 |
|
|
Adjustments to Operating Revenues |
|
- |
|
|
49 |
|
|
|
72 |
|
|
49 |
|
|
Adjustments to Operating Expenses |
|
3,867 |
|
|
3,215 |
|
|
|
10,546 |
|
|
9,040 |
|
|
Adjusted Operating Income |
|
9,188 |
|
|
9,424 |
|
|
|
38,573 |
|
|
35,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EBITDA |
|
12,282 |
|
|
14,052 |
|
|
|
56,172 |
|
|
54,526 |
|
|
Adjustments to Operating Revenues |
|
- |
|
|
49 |
|
|
|
72 |
|
|
49 |
|
|
Adjustments to Operations and Support Expenses |
|
2,083 |
|
|
928 |
|
|
|
3,043 |
|
|
2,084 |
|
|
Adjusted EBITDA |
|
14,365 |
|
|
15,029 |
|
|
|
59,287 |
|
|
56,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Operating Revenues |
|
46,821 |
|
|
47,993 |
|
|
|
181,193 |
|
|
170,756 |
|
|
Adjustments to Operating Revenues |
|
- |
|
|
49 |
|
|
|
72 |
|
|
49 |
|
|
Total Adjusted Operating Revenue |
|
46,821 |
|
|
48,042 |
|
|
|
181,265 |
|
|
170,805 |
|
|
Service Revenues |
|
41,475 |
|
|
42,496 |
|
|
|
163,499 |
|
|
152,345 |
|
|
Adjustments to Service Revenues |
|
- |
|
|
49 |
|
|
|
72 |
|
|
49 |
|
|
Adjusted Service Revenue |
|
41,475 |
|
|
42,545 |
|
|
|
163,571 |
|
|
152,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income Margin |
|
11.4 |
% |
|
12.8 |
% |
|
|
15.4 |
% |
|
15.3 |
% |
|
Adjusted Operating Income Margin |
|
19.6 |
% |
|
19.6 |
% |
|
|
21.3 |
% |
|
20.6 |
% |
|
Adjusted EBITDA Margin |
|
30.7 |
% |
|
31.3 |
% |
|
|
32.7 |
% |
|
33.2 |
% |
|
Adjusted EBITDA Service Margin |
|
34.6 |
% |
|
35.3 |
% |
|
|
36.2 |
% |
|
37.2 |
% |
|
Adjusted Diluted EPS |
||||||||||||||
|
|
|
|
|
|
|||||||||
|
|
Fourth Quarter |
|
|
Year Ended |
|
||||||||
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
||||
Diluted Earnings Per Share (EPS) |
$ |
0.33 |
|
$ |
0.66 |
|
|
$ |
1.89 |
|
$ |
2.85 |
|
|
Amortization of intangible assets |
|
0.19 |
|
|
0.25 |
|
|
|
0.81 |
|
|
0.81 |
|
|
Merger integration items1 |
|
0.04 |
|
|
0.06 |
|
|
|
0.13 |
|
|
0.26 |
|
|
(Gain) loss on sale of assets, impairments and other adjustments2 |
|
0.21 |
|
|
0.04 |
|
|
|
0.20 |
|
|
0.05 |
|
|
Actuarial (gain) loss3 |
|
0.12 |
|
|
(0.07 |
) |
|
|
0.56 |
|
|
(0.38 |
) |
|
Tax-related items |
|
- |
|
|
(0.08 |
) |
|
|
(0.02 |
) |
|
(0.07 |
) |
|
Adjusted EPS |
$ |
0.89 |
|
$ |
0.86 |
|
|
$ |
3.57 |
|
$ |
3.52 |
|
|
Year-over-year growth - Adjusted |
|
3.5 |
% |
|
|
|
|
1.4 |
% |
|
|
|
||
Weighted Average Common Shares Outstanding with Dilution (000,000) |
|
7,341 |
|
|
7,328 |
|
|
|
7,348 |
|
|
6,806 |
|
|
1Includes combined merger integration items and merger-related interest income and expense, and redemption premiums. |
||||||||||||||
2Includes abandonment and impairments, gains on transactions, and employee-related and other costs. |
||||||||||||||
3Includes adjustments for actuarial gains or losses associated with our postemployment benefit plans, 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 losses of $5.1 billion in 2019. As a result, adjusted EPS reflects an expected return on plan assets of $3.8 billion (based on an average expected return on plan assets of 7.00% for our pension trust and 5.75% for our VEBA trusts), rather than the actual return on plan assets of $8.8 billion gain (actual pension return of 16.9% and VEBA return of 15.6%), included in the GAAP measure of income. |
||||||||||||||
Constant Currency
Constant Currency is a non-GAAP financial measure that management uses to evaluate the operating performance of certain international subsidiaries by excluding or otherwise adjusting for the impact of changes in foreign currency exchange rates between comparative periods. We believe constant currency enhances comparison and is useful to investors to evaluate the performance of our business without taking into account the impact of changes to the foreign exchange rates to which our business is subject. To compute our constant currency results, we multiply or divide, as appropriate, our current year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior year average foreign exchange rates. In calculating amounts on a constant currency basis, for our Vrio business unit, we exclude our Venezuela subsidiary in light of the hyperinflationary conditions in Venezuela, which we do not believe are representative of the macroeconomics of the rest of the region in which we operate.
Constant Currency |
|||||||
Dollars in millions |
|
|
|
||||
|
|
Fourth Quarter |
|
||||
|
|
2019 |
|
2018 |
|
||
AT&T Inc. |
|||||||
Total Operating Revenues |
$ |
46,821 |
|
$ |
47,993 |
|
|
Exclude Venezuela |
|
(6 |
) |
|
(8 |
) |
|
Impact of foreign exchange translation |
|
220 |
|
|
- |
|
|
Operating Revenues on Constant Currency Basis |
|
47,035 |
|
|
47,985 |
|
|
Year-over-year growth |
|
-2.0 |
% |
|
|
|
|
|
|
|
|
|
|
||
Adjusted EBITDA |
|
14,365 |
|
|
15,029 |
|
|
Exclude Venezuela |
|
(38 |
) |
|
(38 |
) |
|
Impact of foreign exchange translation |
|
109 |
|
|
- |
|
|
Adjusted EBITDA on Constant Currency Basis |
|
14,436 |
|
|
14,991 |
|
|
Year-over-year growth |
|
-3.7 |
% |
|
|
|
|
|
|
|
|
|
|
||
WarnerMedia Segment |
|||||||
Total Operating Revenues |
$ |
8,924 |
|
$ |
9,232 |
|
|
Impact of foreign exchange translation |
|
58 |
|
|
- |
|
|
WarnerMedia Operating Revenues on Constant Currency Basis |
|
8,982 |
|
|
9,232 |
|
|
Year-over-year growth |
|
-2.7 |
% |
|
|
|
|
|
|
|
|
|
|
||
EBITDA |
|
2,576 |
|
|
2,762 |
|
|
Impact of foreign exchange translation |
|
31 |
|
|
- |
|
|
WarnerMedia EBITDA on Constant Currency Basis |
|
2,607 |
|
|
2,762 |
|
|
Year-over-year growth |
|
-5.6 |
% |
|
|
|
|
|
|
|
|
|
|
||
Latin America Segment |
|
|
|
|
|
||
Total Operating Revenues |
$ |
1,758 |
|
$ |
1,843 |
|
|
Exclude Venezuela |
|
(6 |
) |
|
(8 |
) |
|
Impact of foreign exchange translation |
|
162 |
|
|
- |
|
|
Latin America Operating Revenues on Constant Currency Basis |
|
1,914 |
|
|
1,835 |
|
|
Year-over-year growth |
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
||
EBITDA |
|
205 |
|
|
38 |
|
|
Exclude Venezuela |
|
(38 |
) |
|
(38 |
) |
|
Impact of foreign exchange translation |
|
78 |
|
|
- |
|
|
Latin America EBITDA on Constant Currency Basis |
|
245 |
|
|
- |
|
|
Year-over-year growth |
|
- |
|
|
|
|
|
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 |
|||||||||||
Dollars in millions |
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
|
||||||
|
|
Mar. 31 |
|
June 30, |
|
Sept. 30, |
|
Dec. 31, |
|
Four Quarters |
|
|
|
20191 |
|
20191 |
|
20191 |
|
2019 |
|
|
|
Adjusted EBITDA2 |
$ |
14,802 |
$ |
15,041 |
$ |
15,079 |
$ |
14,365 |
$ |
59,287 |
|
End-of-period current debt |
|
|
|
|
|
|
|
|
|
11,438 |
|
End-of-period long-term debt |
|
|
|
|
|
|
|
|
|
151,709 |
|
Total End-of-Period Debt |
|
|
|
|
|
|
|
|
|
163,147 |
|
Less: Cash and Cash Equivalents |
|
|
|
|
|
|
|
|
|
12,130 |
|
Net Debt Balance |
|
|
|
|
|
|
|
|
|
151,017 |
|
Annualized Net Debt to Adjusted EBITDA Ratio |
|
|
|
|
|
2.547 |
|
||||
1 As reported in AT&T's Form 8-K filed April 24, 2019, July 24, 2019 and October 28, 2019. |
|||||||||||
2 Includes the purchase accounting reclassification of released content amortization of $150 million, $112 million, $108 million and $102 million in the four quarters of 2019, respectively. |
|||||||||||
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 Measure |
|||||||||||||||||
|
|
Fourth Quarter |
|||||||||||||||
|
|
December 31, 2019 |
|
|
December 31, 2018 |
||||||||||||
|
|
Mobility |
|
Business
|
|
Adjustments1 |
|
Business
|
|
|
Mobility |
|
Business
|
|
Adjustments1 |
|
Business
|
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless service |
$ |
13,948 |
$ |
- |
$ |
(11,924) |
$ |
2,024 |
|
$ |
13,700 |
$ |
- |
$ |
(11,817) |
$ |
1,883 |
Strategic and managed services |
|
- |
|
3,927 |
|
- |
|
3,927 |
|
|
- |
|
3,811 |
|
- |
|
3,811 |
Legacy voice and data services |
|
- |
|
2,207 |
|
- |
|
2,207 |
|
|
- |
|
2,498 |
|
- |
|
2,498 |
Other services and equipment |
|
- |
|
455 |
|
- |
|
455 |
|
|
- |
|
396 |
|
- |
|
396 |
Wireless equipment |
|
4,752 |
|
- |
|
(3,897) |
|
855 |
|
|
4,856 |
|
- |
|
(4,083) |
|
773 |
Total Operating Revenues |
|
18,700 |
|
6,589 |
|
(15,821) |
|
9,468 |
|
|
18,556 |
|
6,705 |
|
(15,900) |
|
9,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and support |
|
11,170 |
|
4,062 |
|
(9,267) |
|
5,965 |
|
|
11,087 |
|
4,154 |
|
(9,357) |
|
5,884 |
EBITDA |
|
7,530 |
|
2,527 |
|
(6,554) |
|
3,503 |
|
|
7,469 |
|
2,551 |
|
(6,543) |
|
3,477 |
Depreciation and amortization |
|
2,027 |
|
1,264 |
|
(1,721) |
|
1,570 |
|
|
2,045 |
|
1,194 |
|
(1,747) |
|
1,492 |
Total Operating Expenses |
|
13,197 |
|
5,326 |
|
(10,988) |
|
7,535 |
|
|
13,132 |
|
5,348 |
|
(11,104) |
|
7,376 |
Operating Income |
|
5,503 |
|
1,263 |
|
(4,833) |
|
1,933 |
|
|
5,424 |
|
1,357 |
|
(4,796) |
|
1,985 |
Equity in Net Income (Loss) of Affiliates |
|
- |
|
- |
|
- |
|
- |
|
|
- |
|
1 |
|
- |
|
1 |
Operating Contribution |
$ |
5,503 |
$ |
1,263 |
$ |
(4,833) |
$ |
1,933 |
|
$ |
5,424 |
$ |
1,358 |
$ |
(4,796) |
$ |
1,986 |
1 Non-business wireless reported in the Communication segment under the Mobility business unit. |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operational Measure |
|||||||||||||||||
|
|
Year Ended |
|||||||||||||||
|
|
December 31, 2019 |
|
|
December 31, 2018 |
||||||||||||
|
|
Mobility |
|
Business
|
|
Adjustments1 |
|
Business
|
|
|
Mobility |
|
Business
|
|
Adjustments1 |
|
Business
|
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless service |
$ |
55,331 |
$ |
- |
$ |
(47,406) |
$ |
7,925 |
|
$ |
54,294 |
$ |
- |
$ |
(46,971) |
$ |
7,323 |
Strategic and managed services |
|
- |
|
15,440 |
|
- |
|
15,440 |
|
|
- |
|
14,660 |
|
- |
|
14,660 |
Legacy voice and data services |
|
- |
|
9,180 |
|
- |
|
9,180 |
|
|
- |
|
10,674 |
|
- |
|
10,674 |
Other services and equipment |
|
- |
|
1,557 |
|
- |
|
1,557 |
|
|
- |
|
1,406 |
|
- |
|
1,406 |
Wireless equipment |
|
15,725 |
|
- |
|
(12,968) |
|
2,757 |
|
|
16,227 |
|
- |
|
(13,717) |
|
2,510 |
Total Operating Revenues |
|
71,056 |
|
26,177 |
|
(60,374) |
|
36,859 |
|
|
70,521 |
|
26,740 |
|
(60,688) |
|
36,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and support |
|
40,681 |
|
16,091 |
|
(34,037) |
|
22,735 |
|
|
40,690 |
|
16,201 |
|
(34,283) |
|
22,608 |
EBITDA |
|
30,375 |
|
10,086 |
|
(26,337) |
|
14,124 |
|
|
29,831 |
|
10,539 |
|
(26,405) |
|
13,965 |
Depreciation and amortization |
|
8,054 |
|
4,999 |
|
(6,840) |
|
6,213 |
|
|
8,263 |
|
4,714 |
|
(7,077) |
|
5,900 |
Total Operating Expenses |
|
48,735 |
|
21,090 |
|
(40,877) |
|
28,948 |
|
|
48,953 |
|
20,915 |
|
(41,360) |
|
28,508 |
Operating Income |
|
22,321 |
|
5,087 |
|
(19,497) |
|
7,911 |
|
|
21,568 |
|
5,825 |
|
(19,328) |
|
8,065 |
Equity in Net Income (Loss) of Affiliates |
|
(1) |
|
- |
|
1 |
|
- |
|
|
- |
|
(1) |
|
- |
|
(1) |
Operating Contribution |
$ |
22,320 |
$ |
5,087 |
$ |
(19,496) |
$ |
7,911 |
|
$ |
21,568 |
$ |
5,824 |
$ |
(19,328) |
$ |
8,064 |
1 Non-business wireless reported in the Communication segment under the Mobility business unit. |
|||||||||||||||||
