AT&T Announces First Quarter 2003 Earnings.Business Editors BEDMINSTER Bedminster may refer to:
AT&T (NYSE NYSE See: New York Stock Exchange :T): -- Earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $0.67, compared to $0.60 per diluted share in the prior year first quarter -- Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue of $9.0 billion for the quarter -- Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $1.2 billion for the quarter AT&T (NYSE:T) today reported income from continuing operations of $529 million, or earnings per diluted share of $0.67, for the first quarter of 2003. The company's current quarter income from continuing operations compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to income of $446 million, or earnings per diluted share of $0.60, in the first quarter of 2002. First quarter 2003 net income of $571 million, or earnings per diluted share of $0.73, included income of $42 million, or $0.06, related to the cumulative effect of the adoption of a new accounting standard. First quarter 2002 net loss of $975 million, or $1.32 per diluted share, included losses of $0.76 and $1.16 from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and the cumulative effect of the adoption of a new accounting standard, respectively. "AT&T's solid first quarter results demonstrate our continued success in executing in the marketplace, taking market share and growing key areas of our business despite ongoing economic weakness and a difficult telecom services operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. ," said AT&T Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David W. Dorman Dorman is a surname originating in Germany with the spelling of Dohrman or Dohrmann, but mostly found in Austria, the United States, Canada and even Ukraine. It may refer to:
AT&T reported first quarter 2003 consolidated revenue of $9.0 billion, which included $6.4 billion from AT&T Business Services and $2.5 billion from AT&T Consumer Services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, . This represents a decline of 5.9 percent versus the first quarter of 2002, primarily due to continued declines in long distance (LD) voice services, partially offset by growth in several key segments of AT&T Business Services, as well as the continued success of AT&T Consumer Services' bundled bun·dle n. 1. A group of objects held together, as by tying or wrapping. 2. Something wrapped or tied up for carrying; a package. 3. Biology A cluster or strand of closely bound muscle or nerve fibers. local and LD offering. AT&T Business Services revenue declined by 1.4 percent compared with the prior year first quarter, while AT&T Consumer Services revenue declined by 17.8 percent. AT&T's first quarter 2003 operating income totaled $1.2 billion, resulting in a consolidated operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 13.0 percent. AT&T Business Services posted operating income of $600 million, yielding a margin of 9.3 percent, while AT&T Consumer Services generated operating income of $632 million, yielding a margin of 24.9 percent. Outlook AT&T expects that it will meet or exceed its previously stated 2003 consolidated revenue growth and operating income margin guidance. The company has lowered its guidance for 2003 capital expenditures from a prior range of $3.3 to $3.5 billion to around $3.0 billion. AT&T UNIT HIGHLIGHTS Effective with the current reporting period, AT&T is providing additional product-line revenue detail as part of its quarterly financial disclosures. Within AT&T Business Services, the company is now providing quarterly revenue for long distance voice, local voice, data services, Internet protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. & enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; (IP&E-services An umbrella term for services on the Internet. E-services include e-commerce transaction services for handling online orders, application hosting by application service providers (ASPs) and any processing capability that is obtainable on the Web. See e-speak. ), outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. & other as well as additional operational details. Within AT&T Consumer Services, the company is now providing quarterly revenue for standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. long distance, transactional & other services, as well as bundled services. AT&T Business Services -- Revenue was $6.4 billion, a decline of 1.4 percent from the prior year first quarter. The unit's revenue performance reflects continued weakness in retail demand and overall telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. spending, partially offset by strong growth in local, wholesale and IP&E-services revenue. -- The managed component of total data services, and IP&E-services revenue grew nearly 7 percent from the prior year first quarter and now comprises 30 percent of this revenue total. -- Total data services revenue declined 0.9 percent and IP&E-services revenue grew 9.1 percent, from the prior year quarter. -- Local voice revenue grew approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 25 percent from the prior year first quarter. Local access lines grew approximately 24 percent versus the first quarter of 2002, with approximately 157,000 lines being added in the 2003 first quarter. Local access lines totaled nearly 3.8 million at the end of the current reporting period. -- Long distance voice revenue declined 2.9 percent on a year-over-year basis, driven by continued pricing pressure and weakness in retail demand, partially offset by growth in wholesale revenue. Volumes grew approximately 12 percent on a year-over-year basis, driven by strong wholesale growth, which more than offset the decline in retail volumes. -- Operating income totaled $600 million. Operating margin was 9.3 percent, compared with 13.3 percent in the prior year first quarter. This decline is primarily due to continued pricing pressure, weak retail demand resulting from a soft economy, and a mix shift from higher margin retail LD service to lower margin wholesale service. AT&T Consumer Services -- Revenue was $2.5 billion, a decline of 17.8 percent versus the prior year first quarter, driven by the continued impact of wireless and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the substitution Substitution Arsinoë put her own son in place of Orestes; her son was killed and Orestes was saved. [Gk. Myth.: Zimmerman, 32] Barabbas robber freed in Christ’s stead. [N.T.: Matthew 27:15–18; Swed. Lit. , competition and customer migration to lower priced products and calling plans. The revenue decline was partially offset by growth in bundled revenue, which nearly doubled compared to the prior year first quarter and now represents approximately 17 percent of total AT&T Consumer revenue. -- Operating income totaled $632 million, yielding an operating margin of 24.9 percent, compared with 26.6 percent in the prior year first quarter. The year-over-year decline reflects the impact of substitution, competition, and mix shift, mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the successful management of expenses. -- At the end of the first quarter, AT&T Consumer provided local service to approximately 2.8 million customers, an increase of more than 119 percent from the prior year first quarter. During the current reporting period, AT&T announced an expanded presence in Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. as well as its intention to enter the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). and Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. markets.The company expects to offer local service in 11 markets by the second quarter of 2003. OTHER CONSOLIDATED FINANCIAL HIGHLIGHTS -- AT&T ended the quarter with net debt of $12.0 billion. Net debt is defined as total debt of $18.1 billion less cash of $4.9 billion, restricted cash of $0.5 billion and foreign debt fluctuations of $0.8 billion. -- Capital expenditures for the first quarter were $662 million. -- The effective tax rate for the first quarter of 35.2 percent was positively impacted by the recognition of tax benefits recorded in connection with the exchange and sale of AT&T's remaining interest in AT&T Wireless. The tax rate excluding these transactions would have been 40.5 percent. -- AT&T realized a $20 million net reduction in operating expenses during the first quarter of 2003 due to its adoption of Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. ." DEFINITIONS and NOTES AT&T Business Services LD Voice - includes all of AT&T's domestic and international LD revenue, including Intralata Refers to a telephone call within the same LATA (same region). IntraLATA is local telephone service. InterLATA refers to a call from one LATA to another, which can be within a state or from state to state (interstate). See LATA. toll when purchased as part of an LD calling plan. Local Voice - includes all local calling and feature revenue, Intralata toll when purchased as part of a local calling plan, as well as Inter-carrier local revenue. Data Services- includes bandwidth bandwidth Measurement of the capacity of a communications signal. For digital signals, the bandwidth is the data speed or rate, measured in bits per second (bps). For analog signals, it is the difference between the highest and lowest frequency components, measured in hertz services (dedicated private line services through high-capacity optical transport), frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. and asynchronous transfer mode See ATM. (communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell). See also ATM Forum, Wideband ATM. ATM acronyms. Indiana acronyms. (ATM) revenue for LD and local, as well as revenue for managed data services. Internet Protocol & Enhanced Services (IP&E-services) - includes all services that ride on the IP common backbone backbone: see spinal column. The part of a network that handles the major traffic. It employs the highest-speed transmission paths in the network and may also run the longest distances. or that use IP technology, including managed IP services, as well as application services See ASP and Web services. (e.g., hosting, security). Outsourcing, Professional Services & Other - includes complex bundled solutions primarily in the wide area/local area network space, AT&T's professional services revenue associated with the company's federal government customers, as well as all other Business Services revenue (and eliminations) not previously defined. Also included revenue from AT&T Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. prior to the first quarter of 2003. Data, IP&E-Services - Percent Managed - Managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality refers to AT&T's management of a client's network or network and applications including applications that extend to the customer premise equipment. Data, IP&E-Services - Percent International - A data service that either originates or terminates outside of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , or an IP&E-service installed or wholly delivered outside the United States. AT&T Consumer Services Bundled Services - includes any customer with a local relationship as a starting point Noun 1. starting point - earliest limiting point terminus a quo commencement, get-go, offset, outset, showtime, starting time, beginning, start, kickoff, first - the time at which something is supposed to begin; "they got an early start"; "she knew from the , and all other AT&T subscription-based voice products provided to that customer. Standalone LD, Transactional & Other Services - includes any customer with solely a long distance relationship, non-voice products, or a non subscription-based relationship. Local Customers - residential customers who subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; AT&T Local service. Bundled Households - number of households in targeted markets where there is general availability of AT&T Local service. Other Definitions and Notes Restricted cash - includes $0.5 billion of cash that collateralizes a portion of private debt and is included in other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. on the balance sheet. Foreign currency fluctuations - represents mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. adjustments that increased the debt balance by approximately $0.8 billion at March 31, 2003, on non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. denominated debt of about $4.0 billion. AT&T has entered into foreign exchange hedges that substantially offset the fluctuations in the debt balance. The offsetting mark-to-market adjustments of the hedges are included in other assets on the balance sheet. Monetization Monetization The securitization of the gross revenues of a contract. - represents debt that was exchangeable into, and collateralized by, shares of AT&T Wireless.
Income Statement
AT&T Corp. Consolidated Statements of Income (Unaudited)
Dollars in millions (except per share amounts)
Three Months Ended
March 31,
2003 2002 Change
REVENUE
-------
AT&T Business Services $ 6,437 $ 6,528 (1.4%)
AT&T Consumer Services 2,536 3,086 (17.8%)
Corporate and Other 13 (66) 119.7%
---------------
Total Revenue 8,986 9,548 (5.9%)
OPERATING EXPENSES
------------------
Access and other connection 2,698 2,788 (3.2%)
Costs of services and products 2,011 2,014 (0.1%)
Selling, general and administrative 1,921 1,937 (0.8%)
Depreciation and amortization 1,186 1,175 1.0%
Net restructuring and other charges 4 - NA
---------------
Total operating expenses 7,820 7,914 (1.2%)
Operating Income 1,166 1,634 (28.7%)
Other income (expense), net 10 (55) 118.9%
Interest (expense) (332) (396)(16.0%)
---------------
Income from continuing operations before income
taxes, minority interest income, and net
earnings (losses) related to equity
investments 844 1,183 (28.7%)
(Provision) for income taxes (297) (479)(38.0%)
Minority interest income 1 20 (96.6%)
Net (losses) related to equity investments (19) (278) 93.2%
---------------
Income from continuing operations 529 446 18.5%
(Loss) from discontinued operations - net of
taxes - (565) 100.0%
Cumulative effect of accounting changes - net
of taxes 42 (856) 104.9%
---------------
Net income (loss) $ 571 $ (975) 158.6%
===============
Weighted-average common shares (millions) 784 709
Weighted-average common shares and potential
common shares (millions) 785 738
PER BASIC SHARE:
----------------
Earnings from continuing operations $ 0.67 $ 0.63 6.3%
(Loss) from discontinued operations - (0.80) 100.0%
Cumulative effect of accounting changes 0.06 (1.21) 105.0%
---------------
Earnings (loss) per basic share $ 0.73 $ (1.38) 152.9%
===============
PER DILUTED SHARE:
------------------
Earnings from continuing operations $ 0.67 $ 0.60 11.7%
(Loss) from discontinued operations - (0.76) 100.0%
Cumulative effect of accounting changes 0.06 (1.16) 105.2%
---------------
Earnings (loss) per diluted share $ 0.73 $ (1.32) 155.3%
===============
Dividends declared per share $0.1875 $0.1875
AT&T Corp. Consolidated Statements of Income (Unaudited)
Dollars in millions (except per share amounts)
1Q03 4Q02 3Q02 2Q02 1Q02 2002
REVENUE
------------------------
AT&T Business Services $6,437 $6,588 $6,700 $ 6,742 $6,528 $ 26,558
AT&T Consumer Services 2,536 2,736 2,794 2,911 3,086 11,527
Corporate and Other 13 (34) (85) (73) (66) (258)
Total revenue 8,986 9,290 9,409 9,580 9,548 37,827
OPERATING EXPENSES
------------------------
Access and other
connection 2,698 2,576 2,679 2,747 2,788 10,790
Costs of services and
products 2,011 2,197 2,066 2,086 2,014 8,363
Selling, general and
administrative 1,921 2,077 2,032 1,942 1,937 7,988
Depreciation and
amortization 1,186 1,257 1,243 1,213 1,175 4,888
Net restructuring and
other charges 4 1,463 (26) - - 1,437
Total operating expenses 7,820 9,570 7,994 7,988 7,914 33,466
Operating income (loss) 1,166 (280) 1,415 1,592 1,634 4,361
Other income (expense),
net 10 208 (180) (50) (55) (77)
Interest (expense) (332) (361) (355) (336) (396) (1,448)
Income (loss) from
continuing operations
before income taxes,
minority interest
income, and net
earnings (losses)
related to equity
investments 844 (433) 880 1,206 1,183 2,836
(Provision) for income
taxes (297) (225) (370) (513) (479) (1,587)
Minority interest income 1 33 28 33 20 114
Net (losses) earnings
related to equity
investments (19) 14 (13) (123) (278) (400)
Income (loss) from
continuing operations 529 (611) 525 603 446 963
(Loss) from discontinued
operations - net of
taxes - (197) (318) (13,433) (565) (14,513)
Gain on disposition of
discontinued operations
- net of taxes - 1,324 - - - 1,324
Income (loss) before
cumulative effect of
accounting changes 529 516 207 (12,830) (119) (12,226)
Cumulative effect of
accounting changes, net
of taxes 42 - - - (856) (856)
Net income (loss) $ 571 $ 516 $ 207 $(12,830)$ (975)$(13,082)
Weighted-average common
shares (millions) 784 776 770 730 709 746
Weighted-average common
shares and potential
common shares
(millions) 785 776 788 750 738 766
PER BASIC SHARE:
------------------------
Earnings (loss) from
continuing operations $ 0.67 $(0.79)$ 0.68 $ 0.83 $ 0.63 $ 1.29
(Loss) from discontinued
operations - (0.26) (0.41) (18.41) (0.80) (19.44)
Gain on disposition of
discontinued operations - 1.71 - - - 1.77
Cumulative effect of
accounting changes 0.06 - - - (1.21) (1.15)
Earnings (loss) per
basic share $ 0.73 $ 0.66 $ 0.27 $ (17.58)$(1.38)$ (17.53)
PER DILUTED SHARE:
------------------------
Earnings (loss) from
continuing operations $ 0.67 $(0.79)$ 0.67 $ 0.80 $ 0.60 $ 1.26
(Loss) from discontinued
operations - (0.26) (0.41) (17.91) (0.76) (18.95)
Gain on disposition of
discontinued operations - 1.71 - - - 1.73
Cumulative effect of
accounting changes 0.06 - - - (1.16) (1.12)
Earnings (loss) per
diluted share $ 0.73 $ 0.66 $ 0.26 $ (17.11)$(1.32)$ (17.08)
------------------------ ------ ------ ------ -------- ------ --------
Historical Segment Data
Segment Disclosures (Unaudited)
Dollars in millions
1Q03 4Q02 3Q02 2Q02 1Q02 2002
AT&T Business Services
LD Voice $2,961 $2,853 $3,129 $3,224 $3,048 $12,254
Local Voice 335 336 274 277 268 1,155
Total Voice 3,296 3,189 3,403 3,501 3,316 13,409
Data Services 2,000 2,079 2,086 2,077 2,018 8,260
IP&E-Services 445 442 421 406 408 1,677
Total Data Services, IP&E-
Services 2,445 2,521 2,507 2,483 2,426 9,937
Outsourcing, Professional
Services & Other 696 878 790 758 786 3,212
Total Revenue 6,437 6,588 6,700 6,742 6,528 26,558
Operating Income (Loss)(1) 600 (612) 854 856 867 1,965
Operating Margin 9.3% (9.3%) 12.7% 12.7% 13.3% 7.4%
Capital Expenditures 636 1,297 912 930 575 3,714
Depreciation & Amortization 1,126 1,173 1,128 1,141 1,104 4,546
Total Data Services, IP&E-
Services - % managed 30% 30% 29% 29% 29% 29%
Total Data Services, IP&E-
Services - % international 14% 15% 14% 15% 13% 14%
LD Volume Growth - Yr/Yr 12% 7% 2% (1%) (1%) N/A
LD Volume % Wholesale 45% 42% 38% 34% 33% 37%
AT&T Consumer Services
Standalone LD,
Transactional and Other
Services $2,112 $2,375 $2,499 $2,670 $2,869 $10,413
Bundled Services 424 361 295 241 217 1,114
Total Revenue 2,536 2,736 2,794 2,911 3,086 11,527
Operating Income(2) 632 389 595 787 821 2,592
Operating Margin 24.9% 14.2% 21.3% 27.0% 26.6% 22.5%
Capital Expenditures 22 32 34 33 28 127
Depreciation & Amortization 35 57 89 43 41 230
Local Customers (in
thousands) 2,778 2,423 1,916 1,549 1,266 2,423
Bundled Households (in
millions) 32.2 32.2 32.2 17.6 13.1 32.2
Corporate and Other
Revenue $ 13 $ (34)$ (85)$ (73)$ (66)$ (258)
Operating Income (Loss)(3) (66) (57) (34) (51) (54) (196)
Capital Expenditures 4 17 23 13 10 63
Depreciation & Amortization 25 27 26 29 30 112
Total AT&T
Revenue $8,986 $9,290 $9,409 $9,580 $9,548 $37,827
Operating Income (Loss)(4) 1,166 (280) 1,415 1,592 1,634 4,361
Operating Margin 13.0% (3.0%) 15.0% 16.6% 17.1% 11.5%
Capital Expenditures 662 1,346 969 976 613 3,904
Depreciation & Amortization 1,186 1,257 1,243 1,213 1,175 4,888
(1) Includes business restructuring and asset impairment (charges)
benefits of ($1,230M) in 4Q02 and $27M in 3Q02.
(2) Includes business restructuring and asset impairment (charges)
benefits of ($223M) in 4Q02 and $12M in 3Q02.
(3) Includes business restructuring (charges) of ($10M) in 4Q02 and
($13M) in 3Q02.
(4) Includes business restructuring and asset impairment (charges)
benefits of ($1,463M) in 4Q02 and $26M in 3Q02.
Balance Sheet
AT&T Corp. Consolidated Balance Sheets (Unaudited)
Dollars in millions
March December %
31, 2003 31, 2002 Change
ASSETS
Cash and cash equivalents $ 4,900 $ 8,014 -38.9%
Accounts receivable, less allowances of $697
and $669 5,028 5,286 -4.9%
Deferred income taxes 779 910 -14.4%
Other current assets 1,150 1,693 -32.1%
-----------------
Total Current Assets 11,857 15,903 -25.4%
Property, plant and equipment, net of
accumulated depreciation of $32,096 and
$31,021 25,246 25,604 -1.4%
Goodwill 4,660 4,626 0.7%
Other purchased intangible assets, net of
accumulated depreciation of $262 and $244 542 556 -2.6%
Prepaid pension costs 3,655 3,596 1.6%
Other assets 4,463 4,987 -10.5%
-----------------
TOTAL ASSETS $ 50,423 $ 55,272 -8.8%
=================
LIABILITIES
Accounts payable $ 3,384 $ 3,819 -11.4%
Payroll and benefit-related liabilities 941 1,519 -38.0%
Debt maturing within one year 4,346 3,762 15.5%
Other current liabilities 3,046 2,924 4.2%
-----------------
Total Current Liabilities 11,717 12,024 -2.5%
Long-term debt 13,786 18,812 -26.7%
Long-term benefit-related liabilities 4,095 4,001 2.3%
Deferred income taxes 4,768 4,739 0.6%
Other long-term liabilities and deferred
credits 3,359 3,384 -0.7%
-----------------
Total Liabilities 37,725 42,960 -12.2%
-----------------
SHAREOWNERS' EQUITY
AT&T Common Stock, $1 par value, authorized
6,000,000,000 shares; issued and outstanding
785,563,631 shares (net of 171,748,905
treasury shares) at March 31, 2003 and
783,037,580 shares (net of 171,801,716
treasury shares) at December 31, 2002 786 783 0.3%
Additional paid-in capital 28,079 28,163 -0.3%
Accumulated deficit (15,995) (16,566) 3.4%
Accumulated other comprehensive loss (172) (68)-153.5%
-----------------
Total Shareowners' Equity 12,698 12,312 3.1%
-----------------
TOTAL LIABILITIES & SHAREOWNERS' EQUITY $ 50,423 $ 55,272 -8.8%
=================
NOTE TO FINANCIAL MEDIA: AT&T executives will discuss the company's performance in a two-way conference call for financial analysts at 8:15 a.m. ET today. Reporters are invited to listen to the call. U.S. callers should dial 888-276-0010 to access the call. Callers outside the U.S. should dial + 1-612-326-1003. In addition, Internet rebroadcasts of the call will be available on the AT&T website beginning later today. The website address is http://www.att.com/ir. An audio rebroadcast of the conference call will be available beginning in the afternoon on Wednesday Wednesday: see week. , April 23 until midnight on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 25. To access the replay, please visit http://www.att.com/ir, or U.S. callers can dial 800-475-6701, access code 661276. Callers outside the U.S. should dial +1-320-365-3844, access code 661276. The foregoing are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T. |
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