AT&T Earns 6 Cents Per Diluted Share from Continuing Operations, Excluding Other Expense/Income.Business Editors NEW YORK--(BUSINESS WIRE)--April 24, 2002 Reported Revenue is $12.02 Billion; Reported First-Quarter Loss Per Share of 28 Cents, Including a 24-Cent Accounting Change AT&T (NYSE NYSE See: New York Stock Exchange : T) today announced first-quarter earnings of $0.06 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 , excluding other expense/income, compared with a loss of $0.02 on the same basis for the same quarter last year. On a reported basis, AT&T lost $0.05 per diluted share from continuing operations and a total loss of $0.28 per diluted share, or $975 million, including the cumulative effect of a required accounting change. The accounting change resulted in a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $856 million after tax, or $0.24 per diluted share, due to the cumulative effect of adopting Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ." Additionally, AT&T's first quarter reported earnings included $580 million of pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges associated with certain investments and contractual obligations. In the year-ago quarter, the company reported a loss of $0.17 per diluted share from continuing operations. The new accounting standard eliminates amortization of goodwill and franchise costs. Amortization of these items in the first quarter of 2001 had a $0.12 per diluted share impact to continuing operations. AT&T's first-quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become from continuing operations, excluding other expense/income, totaled $3.28 billion, a decline of 11.7 percent from the year-ago quarter. Revenue for the quarter was $12.02 billion, a decline of 8.4 percent on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis compared to the year-ago quarter, primarily due to continued declines in long distance voice services. Declining revenue was offset by growth at AT&T Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). , primarily in high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. data, telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. and digital video, as well as growth at AT&T Business in data/Internet Protocol (IP)/managed services and local services. Pro forma revenue is adjusted for the deconsolidation of Excite@Home and significant closed cable dispositions and acquisitions. On a reported basis, revenue declined 11.3 percent from the year-ago quarter. "During the quarter we maintained our focus on managing costs, increasing revenue in our growth businesses, and improving customer satisfaction," 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. C. Michael Armstrong C Michael Armstong (born 18 October, 1938, in Detroit, Michigan) is the former AT&T chairman and CEO, who tried to reestablish AT&T as an end-to-end carrier. Unfortunately, due to the dot.com bust and various other issues, he was forced to break the group up in 2001. . "AT&T Business experienced solid growth in packet and local services, despite challenging economic conditions. AT&T Consumer, which continues to report industry-leading long distance EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). margins, began offering local service in two more states. And AT&T Broadband reached an important milestone as cable telephony See cable telephone. reached the EBITDA break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. . The unit also hired and trained approximately 1,000 new customer service representatives and added more than half a million new telephony, high-speed data and digital video customers." AT&T BUSINESS UNIT HIGHLIGHTS AT&T Business reported an EBIT margin, excluding other expense/income, of 13.5 percent, compared with 16.5 percent in the year-ago quarter. This decline reflects the impact of pricing pressures and the transition from higher margin long distance services to lower margin growth business services. The unit's EBIT, on the same basis, was $883 million. The unit's first-quarter revenue was $6.53 billion, a decline of 8.0 percent from the year-ago quarter. The unit's revenue reflects a continuing decline in long distance voice services due to continued pricing pressures, partly offset by growth in data/IP/managed services and local voice services. Data/IP/managed services revenue grew about 6 percent year-over-year. Excluding low-speed private line services, data/IP/managed services growth was approximately 8 percent. Approximately 1 percent of total data/IP/managed services revenue and 1 percentage point of revenue growth were attributable to customer premises equipment See CPE. sales, which are a key part of the customer bundle. Slowing revenue growth in data services is largely attributable to pricing pressures and continued economic weakness. Packet services revenue, which includes 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. , IP 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), grew about 20 percent, led by strong growth in IP. Revenue for total IP services grew approximately 37 percent over the year-ago quarter. 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 , which includes IP, managed network services, e-infrastructure, and high availability Also called "RAS" (reliability, availability, serviceability) or "fault resilient," it refers to a multiprocessing system that can quickly recover from a failure. There may be a minute or two of downtime while one system switches over to another, but processing will continue. and security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the , grew about 21 percent. Long distance voice revenue declined approximately 19 percent from the year-ago quarter, as current pricing levels work their way through the contract base and the proportion of wholesale minutes increases as a result of success in markets such as wireless. Overall calling volumes were roughly flat, as strong outbound out·bound adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" growth was offset by inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound volume weakness, driven by key industry sectors such as travel, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and retail. Local voice revenue grew nearly 17 percent year-over-year. More than 100,000 access lines were added in the quarter, bringing the total number of access lines in service to more than 3 million. During the quarter the unit continued to focus on increasing its use of its existing footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. in 90 cities. AT&T Consumer reported an EBIT margin, excluding other expense/income, of 26.3 percent, compared with 32.8 percent in the year-ago quarter, and EBIT of $821 million on the same basis. The unit had revenue of $3.13 billion, a decline of 22.0 percent from the year-ago quarter, due to the effects of competition, 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. , a shift to lower-priced products such as prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. cards, and customer migration to lower-priced calling plans.
During the quarter AT&T Consumer entered the local service market in Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). and 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. using the unbundled network elements Unbundled Network Elements (UNE) are a requirement mandated by the United States Telecommunications Act of 1996. They are the parts of the telecommunications network that the incumbent local exchange carriers (ILECs) are required to offer on an unbundled basis. platform (UNE-P UNE-P Unbundled Network Element - Platform ). AT&T Consumer now offers local service in four states, and provides local service to approximately 1.3 million customers. AT&T Broadband's EBITDA, excluding other expense/income, was $465 million for the quarter. EBITDA margin, on the same basis, was 19.0 percent. Excluding the impact of Comcast Comcast Corporation, (NASDAQ: CMCSA) is the largest[1] cable television (CATV) company and the second largest Internet service provider in the United States. merger-related costs, AT&T Broadband's EBITDA margin was 20.4 percent. AT&T Broadband grew pro forma revenue, which is adjusted for significant closed cable dispositions and acquisitions, 13.9 percent over the year-ago quarter to $2.44 billion. The increase was primarily from advanced services including high-speed data, telephony and digital video, as well as increased basic video revenue due to a rate increase that took effect on January January: see month. 1, 2002, partially offset by a loss of basic subscribers. On a reported basis, revenue decreased 1.1 percent from the year-ago quarter. During the quarter the unit added more than 500,000 revenue generating units, which includes digital video, high-speed data and cable telephony customers. The number of basic video customers declined by approximately 179,000, most of which was due to non-recurring factors associated with the conclusion of certain promotional activities and stricter enforcement of credit and related operating policies. AT&T Broadband continues to focus on key priorities for the business by investing in customer service and committing to spend more than $1.1 billion in 2002 on plant upgrades, efforts which are expected to reduce customer churn churn: see butter. , improve video offerings and provide new marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. homes for high-speed data and telephony. Corporate and Other includes corporate staff functions and eliminations. EBIT, excluding other expense/income, increased $276 million due primarily to the impact of Excite@Home which was consolidated in the first quarter of 2001, but not in the first quarter of 2002. The increase was partially offset by a lower pension credit, primarily driven by a lower pension trust asset base resulting from lower investment returns. Reported revenue of negative $69 million consisted primarily of the elimination of inter-segment revenue. Corporate and other revenue increased $54 million in the first quarter of 2002 versus the prior year quarter, adjusted for the deconsolidation of Excite@Home. The increase was primarily driven by lower internal revenue eliminations as a result of the split-off The process whereby a parent corporation organizes a subsidiary corporation to which it transfers part of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the shareholders of the parent corporation in exchange for a portion of their of AT&T Wireless on July July: see month. 9, 2001, partially offset by increased internal sales from AT&T Business to AT&T Broadband. OUTLOOK AT&T Business On April 1, 2002, AT&T concluded the unwind Unwind 1. The closure of an investment position. 2. The reconciliation of an error previously unseen by a brokerage house. Notes: 1. Sometimes referred to as closing out a position. of its Concert joint venture with BT. As a result, AT&T Business anticipates reporting incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue of approximately $575-$675 million, distributed evenly over the remainder of 2002, as it integrates these operations. Concert's operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and costs related to its reintegration reintegration /re·in·te·gra·tion/ (-in-te-gra´shun) 1. biological integration after a state of disruption. 2. restoration of harmonious mental function after disintegration of the personality in mental illness. , global strategy implementation and network expansion and development will also drive an incremental reduction of $200-$250 million in EBIT, excluding other expense/income, for the remaining three quarters of 2002, with approximately 10-15 percent of this decline coming in the second quarter, and the balance distributed evenly over the second half of the year. Approximately half of the total reduction is for one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. integration costs and expenses for expanding AT&T's global network, particularly in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
Based on a continuing trend of constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. spending on telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. in the business market, AT&T Business has adjusted expectations by one percent to reflect a full-year revenue decline of approximately 7 percent, excluding the anticipated Concert revenue of $575-$675 million. Including Concert revenue, the decline is expected to be in the 4.5 to 5 percent range. For the second quarter, excluding the impact of Concert, AT&T Business expects a similar to slightly improved rate of revenue decline versus the first quarter rate of 8 percent. Including Concert, the second quarter rate of decline will improve by 2-4 percentage points. Despite revenue pressures, and as previously anticipated, AT&T Business expects second quarter and full-year EBIT, excluding other expense/income, margins to decline slightly, by 1 to 2 percentage points, compared to the restated 2001 margin of 13.3 percent, excluding the impact of the Concert integration. Including the impact of the Concert integration, full-year EBIT margin, excluding other expense/income, for 2002 is expected to decline approximately 1 additional percentage point, resulting in a total decline of 2 to 3 percentage points. AT&T Consumer AT&T Consumer expects 2002 revenue to reflect the increased impact of wireless and Internet substitution, the ongoing impact of Regional Bell Operating Companies' entries into long distance, and the migration of current customers to lower-priced calling plans and products. These factors, which were evident in the unit's first quarter revenue results, will continue throughout the year. The unit continues to anticipate a full-year revenue decline in the mid- mid- pref. Middle: midbrain. 20 percent range. The unit continues to expect these same factors to also impact its full-year EBIT margin, excluding other expense/income, and reaffirmed its expectation of a double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. percentage point decline in EBIT margin. In 2002, the core communications services business of AT&T, which primarily includes AT&T Business and AT&T Consumer, expects to reduce its capital expenditures by $300-$400 million from previously announced levels as a result of more tightly disciplined spending. The company now expects full-year capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. for these units to be in the range of $3.8-$4.2 billion. AT&T Broadband AT&T Broadband now expects second quarter revenue to grow approximately 10 percent compared to the year-ago quarter, primarily due to a decline in the number of basic video subscribers and lower advertising revenue growth rate compared to the year-ago quarter. The unit expects third and fourth quarter growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. to increase from this second quarter low point, and expects full-year revenue growth to be in the low double-digits. The unit now expects full-year EBITDA, excluding other expense/income and Comcast merger-related costs, of $2.4-$2.5 billion due to lower revenue associated with subscriber declines, coupled with contingency contingency n. an event that might not occur. planning expenses related to support vendor issues. This EBITDA outlook, however, does not include a more extensive alternate arrangement for certain support functions should that become necessary in 2002. The unit continues to expect 2002 RGU RGU The Robert Gordon University (Aberdeen, Scotland) RGU Responsible Governmental Unit RGU Revenue-Generating Unit growth to be similar to 2001. AT&T Group On an overall company basis and excluding the impact of Concert, AT&T said it anticipates second quarter revenue to decline at a rate similar to the first quarter decline of 8.4 percent. Including the Concert impact, the company expects the second quarter revenue rate decline to improve 1 to 2 percentage points from the first quarter rate. The company expects first quarter EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. , excluding other expense/income, to be in the range of $0.01 to $0.04. On the same basis, the company expects EBITDA to be approximately $3.0 billion. DEFINITIONS: AT&T Group does not include the results of Liberty Media Group, which was tracked as a separate class of stock through August 10, 2001, the split-off date. EBIT refers to earnings before interest, taxes, extraordinary item, cumulative effect of accounting changes, dividend requirements on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . EBIT, excluding other expense/income, refers to EBIT, excluding other expense/income and pretax net losses/earnings related to equity investments. EBITDA refers to EBIT, excluding depreciation and amortization, and minority interest other than Excite@Home's minority interest. EBITDA, excluding other expense/income, refers to EBITDA, excluding other expense/income and pretax net losses/earnings related to equity investments. EBIT margin refers to EBIT as a percentage of reported revenue. EBITDA margin refers to EBITDA as a percentage of reported revenue. EPS from continuing operations, excluding other expense/income, refers to earnings per share, excluding other expense/income, net losses/earnings related to equity investments, extraordinary item, cumulative effect of accounting changes, dividend requirements on preferred stock and discontinued operations. Pro forma revenue: First-quarter 2001 revenue is adjusted for significant cable acquisitions and dispositions closed in 2001 and the deconsolidation of Excite@Home as applicable, as if these events occurred on January 1, 2001.
1ST Quarter at a Glance 1Q02 vs. 1Q01
AT&T revenue $12.02B (8.4%)(a)
AT&T Broadband revenue $2.44B 13.9%(a)
AT&T Business revenue $6.53B (8.0%)
AT&T Consumer revenue $3.13B (22.0%)
EBITDA, excluding other expense/income $3.28B (11.7%)
Reported EBITDA $2.64B (8.6%)
EBIT, excluding other expense/income $1.30B (4.8%)
Reported EBIT $664M 44.6%
Capital expenditures $1.35B (39.7%)
1ST Quarter Highlights
EPS from continuing operations, excluding other
expense/income $0.06
Reported EPS from continuing operations ($0.05)
Reported EPS ($0.28)
Total Assets $152.8B
Debt, net of cash and monetizations $34.4B
(a) First-quarter 2001 revenue is adjusted for significant cable
acquisitions and dispositions closed in 2001 and the
deconsolidation of Excite@Home, as applicable, as if these events
occurred on January 1, 2001.
AT&T Group
Combined Statements of Operations (Unaudited)
----------------------------------------------------------------------
For the Three Months
Ended March 31,
Dollars in Millions (except per share amounts) 2002 2001
---------------------------------------------- ---- ----
Revenue $ 12,023 $ 13,551
Operating Expenses
Costs of services and products 3,290 3,572
Access and other connection 2,808 3,151
Selling, general and administrative 2,585 2,794
Depreciation and other amortization 1,816 1,702
Amortization of goodwill, franchise costs and
other purchased intangibles 79 710
Net restructuring and other charges 56 808
-------- ------
Total operating expenses 10,634 12,737
Operating income 1,389 814
Other (expense), net (162) (783)
Interest expense 767 879
--- ---
Income (loss) from continuing operations before
income taxes, minority interest and dividends on
subsidiary preferred stock and net (losses)
related to equity investments 460 (848)
Provision for income taxes 266 218
Minority interest and dividends on subsidiary
preferred stock (57) 640
Net (losses) related to equity investments (297) (57)
----- ----
(Loss) from continuing operations (160) (483)
(Loss) from discontinued operations-net of tax - (68)
----- ----
(Loss) before extraordinary gain and cumulative
effect of accounting changes (160) (551)
----- ----
Extraordinary gain-net of tax 41 -
Cumulative effect of accounting changes- net of tax (856) 359
----- -----
Net (loss) of AT&T Group (975) (192)
Dividend requirements of preferred stock, net - (181)
(Loss) attributable to common shareowners $ (975) $ (373)
===== =====
AT&T Common Stock Group :
(Loss) $ (975) $ (366)
Weighted-average shares (millions) 3,546 3,805
Weighted-average shares and potential common shares
(millions)(a) 3,546 3,805
(Loss) from continuing operations per basic and
diluted share $ (0.05) $ (0.17)
(Loss) from discontinued operations per basic and
diluted share - (0.02)
Extraordinary gain per basic and diluted share 0.01 -
Cumulative effect of accounting changes per basic (0.24) 0.09
and diluted share ----- ----
(Loss) per basic and diluted share $ (0.28) $ (0.10)
===== =====
Dividends declared per share $ 0.0375 $ 0.0375
====== ======
AT&T Wireless Group:
(Loss) $ - $ (7)
Weighted-average shares (millions) - 363
Weighted-average shares and potential common shares
(millions)(a) - 363
(Loss) per basic and diluted share $ - $ (0.02)
====== ======
(a) Weighted-average shares assumes dilution from the potential
conversion of debt and equity securities and the potential
exercise of outstanding stock options and other performance
awards, unless they are anti-dilutive to (loss) earnings per
diluted share.
Earnings Per Share Reconciliation
---------------------------------
The following table reconciles the reported (loss) per diluted
share to earnings excluding other (expense), net and net (losses)
related to equity investments per diluted share:
For the three months ended March 31,
2002 2001
---- ----
Reported (loss) from continuing
operations per diluted share ($0.05) ($0.17)
Less reconciling items:
Other (expense), net (0.03) (0.13)
Net (losses) related to equity
investments (0.08) (0.02)
------ ------
(0.11) (0.15)
------ ------
Earnings (loss) per diluted share
from continuing operations excluding
other (expense), net, and net
(losses) related to equity
investments $0.06 ($0.02)
===== =======
AT&T Group
Combined Balance Sheets (Unaudited)
----------------------------------------------------------------------
March 31, December 31,
Dollars in Millions 2002 2001
-------- ------------
ASSETS
Cash and cash equivalents $ 2,343 $ 10,592
Accounts receivables, less allowances of
$810 and $827 7,347 7,736
Other receivables 1,520 1,645
Investments 477 668
Deferred income taxes 1,175 1,230
Other current assets 737 657
--- ---
Total Current Assets 13,599 22,528
Property, plant & equipment, net of accumulated
depreciation of $33,732 and $32,046 40,829 41,322
Franchise costs, net of accumulated amortization
of $2,501 in 2001 41,381 42,819
Goodwill, net of accumulated amortization of
$1,307 in 2001 24,668 24,675
Investments and related advances 21,790 23,818
Prepaid pension costs 3,391 3,337
Other assets 7,149 6,783
----- -----
TOTAL ASSETS $ 152,807 $ 165,282
======= =======
LIABILITIES
Accounts payable $ 3,866 $ 4,744
Payroll and benefit-related liabilities 1,602 2,084
Debt maturing within one year 5,233 12,958
Other current liabiilities 5,273 5,641
------- --------
Total Current Liabilities 15,974 25,427
Long-term debt 39,070 40,527
Long-term benefit-related liabilities 3,590 3,594
Deferred income taxes 27,762 28,160
Other long-term liabilities and deferred credits 7,691 7,614
------- --------
Total Liabilities 94,087 105,322
------- --------
Minority interest 2,732 3,560
Company-Obligated Convertible Quarterly Income
Preferred Securities of Subsidiary Trust
Holding Solely Subordinated Debt Securities
of AT&T 4,723 4,720
SHAREOWNERS' EQUITY
AT&T Common Stock, $1 par value, authorized
6,000,000,000 shares; issued and outstanding
3,566,313,758 shares (net of 851,814,745 treasury
shares) at March 31, 2002, and 3,542,405,744
shares (net of 851,746,431 treasury
shares) at December 31, 2001 3,566 3,542
Additional paid-in capital 49,983 49,265
Accumulated (deficit) (1,760) (785)
Accumulated other comprehensive (loss) (524) (342)
----- -----
Total Shareowners' Equity 51,265 51,680
------ ------
TOTAL LIABILITIES AND SHAREOWNERS' EQUITY $ 152,807 $ 165,282
====== =======
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. These factors include the rate of decline of traditional long distance voice services, technology change and substitution, the actions of competitors in all segments in setting prices, conditions of excess capacity, and rates of implementation of regulatory changes that favor competitors and promote remonopolization. For a more detailed description of the factors that could cause actual results to differ from forecast, 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. 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. Reporters are invited to listen to the call. U.S. callers should dial 800-230-1766 to access the call. Callers outside the U.S. should dial 612-332-0335. 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. A copy of the earnings commentary is also available online. An audio rebroadcast of the conference call will be available beginning in the afternoon on Wednesday Wednesday: see week. , April 24 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 26. To access the replay, please visit http://www.att.com/ir, or U.S. callers can dial 800-475-6701, access code 633599. Callers outside the U.S. should dial 320-365-3844, access code 633599. |
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