AT&T Wireless Services Reports Strong Fourth Quarter Total Revenue Increase of Nearly 19 Percent.Business Editors and Technology Writers REDMOND Redmond, city (1990 pop. 35,800), King co., W Wash., a suburb of Seattle, on Lake Sammamish; inc. 1912. Its economy centers around computer software (Microsoft Corp. , Wash.--(BUSINESS WIRE)--Jan. 29, 2002 AT&T Wireless (NYSE NYSE See: New York Stock Exchange :AWE AWE - Advanced WavEffect ) Net Mobility Subscriber Additions of 927,000 Mobility 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 Rises 74.9 Percent 4Q Churn churn: see butter. was 2.7 Percent Total Full-Year Revenue Increases 30.3 Percent Company Provides 2002 Guidance AT&T Wireless (NYSE:AWE) said today that its total consolidated revenue grew to $3.528 billion for the fourth quarter, an increase of 18.7 percent compared to the year-ago quarter and increased 30.3 percent to $13.610 billion for the full-year 2001. Services revenue for the mobility business increased 23.1 percent to $3.241 billion in the fourth quarter compared to $2.634 billion for the year-ago quarter. For the full year, services revenue increased 33.7 percent to $12.532 billion compared to $9.374 billion in 2000. The company also met analyst expectations for the fourth quarter by reporting 927,000 net subscriber additions and strong double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in mobility 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. excluding depreciation and amortization (EBITDA). "AT&T Wireless stands out in delivering solid growth despite the challenges of a tough economic environment," said AT&T Wireless 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. John D. Zeglis John D. Zeglis (1947- )served as the President of AT&T and the Chairman and Chief Executive Officer (CEO) of AT&T Wireless. References
Contraction of we have. we've have met our key growth goals. Through disciplined and consistent execution, we've grown the company more in the last 24 months than in the previous six years. At the same time, we made critical strategic investments to prepare for future growth." "For 2002 and beyond we're we're Contraction of we are. we're we are sharply focused on a strategy to deliver value to our shareowners and customers," added Mohan Mohan is a common male Indian name derived from Sanskrit meaning "delightful", "charming", or "attractive". Mohan may also refer to:
For the fourth quarter, the company had a net loss of $0.48 per share compared with income of $0.15 per share in the prior-year quarter. Loss per share 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. was $0.34 in the fourth quarter, including the loss on disposal of the fixed wireless business, compared with a loss per share from discontinued operations of $0.03 in the prior-year quarter. Loss per 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 was $0.14 per share, compared with income of $0.18 per share in the prior-year quarter. AT&T Wireless continued to show growth in its operating income during the fourth quarter. Offsetting this growth were net gains associated with one-time transactions recorded in the prior-year quarter, as well as a decrease in net equity earnings from investments in unconsolidated subsidiaries during the fourth quarter. The fourth quarter 23.1 percent increase in services revenue for the mobility business can be primarily attributed to continued subscriber growth and increased usage, partially offset by lower average revenue per user (ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. ). Equipment revenue was $287 million in the fourth quarter, a decline of 15.0 percent compared with the prior year quarter. Minutes of use per subscriber reached a record level of 400 average minutes per subscriber per month in the fourth quarter, an increase from 366 minutes in the year-ago quarter and 389 minutes in the third quarter of 2001. ARPU was $60.80, a decrease of 8.0 percent from the year-ago quarter. For the full year, ARPU was $62.60, a decline of 8.2 percent compared to 2000. The decline from the prior year quarter was due primarily to continued competitive pricing and expansion into a broader base of consumer segments. Consolidated subscriber net additions for the mobility business totaled 927,000, a 23.9 percent increase compared to the third quarter of 2001 and a 7.1 percent increase compared to the year-ago quarter. Total consolidated subscribers were 18.0 million at the end of the fourth quarter, representing a 19.0 percent increase from the prior year. Net subscriber additions in the fourth quarter, including affiliates and a partnership market, totaled 1.1 million. At the end of the fourth quarter, total subscribers, including affiliates and a partnership market, were 20.8 million. AT&T Wireless mobility EBITDA for the fourth quarter was $666 million, an increase of 74.9 percent from the comparable year-ago quarter. The EBITDA growth includes the results of acquisitions that occurred during the fourth quarter of 2000, as well as the impact of a continued focus on cost reductions. Given the strong subscriber growth, the increase was partially offset by higher network costs driven by the increased usage, as well as slightly higher customer acquisition, customer care and billing costs. For full-year 2001, mobility EBITDA grew 65.4 percent to $3.115 billion. EBITDA margin (as a percent of services revenue) for the mobility business increased to 20.5 percent for the fourth quarter, a 600-basis point increase from the 14.5 percent margin for the year-ago quarter. For the full year, EBITDA margin was 24.9 percent, a 480-basis point increase from 20.1 percent in 2000. Churn for the quarter was 2.7 percent, a 20-basis point improvement from the year-ago quarter and a 40-basis point improvement from the third quarter of 2001. For the full year, churn was 2.9 percent, a level comparable to 2000. Churn relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc post-paid programs was 2.4 percent in the fourth quarter, a decrease from 2.6 percent in the third quarter of 2001 and 2.8 percent in the prior year quarter. 2002 Guidance AT&T Wireless also provided its 2002 expectations for growth in its mobility services revenue, EBITDA and subscribers, and for the amount of capital expenditures. The company said it expects to report services revenue growth percentage in the low teens for full-year 2002. EBITDA growth is expected to be in the low 30 percent range. The subscriber growth rate, on a consolidated basis in 2002, is expected to be in the low teens. Total capital expenditures are expected to be approximately $5 billion in 2002, which would be level with full-year 2001 expenditures. Update on Fixed Wireless Exit Last quarter, the company also announced that it intended to exit the fixed wireless business over the next several months. In December, the company finalized See finalization. its exit plans and received approval from its Board of Directors. As a result, the company recorded a pre-tax charge in the fourth quarter of $1.3 billion, reflecting a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the assets and the impact of phased exit charges. On January 15, 2002, Netro Corporation (Nasdaq:NTRO NTRO National Terrorism Response Objective NTRO National Technical Research Organization (India) ), a leading provider of 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). fixed wireless access networks, announced a definitive agreement to acquire certain fixed wireless assets from AT&T Wireless. For $16 million in cash and 8.2 million shares of Netro common stock, Netro will acquire AT&T Wireless' fixed wireless development team, a license to intellectual property, equipment and proprietary software assets. The transaction is expected to close next month subject to customary closing conditions. At that time, AT&T Wireless will own approximately 13.5 percent of Netro's outstanding common stock. AT&T Wireless anticipates that it will complete its exit of the fixed wireless business by mid- mid- pref. Middle: midbrain. 2002. Update on TeleCorp PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. Acquisition On October 8, AT&T Wireless announced that it would acquire its largest affiliate, TeleCorp PCS (Nasdaq:TLCP TLCP Thermotropic Liquid Crystalline Polymer TLCP Toxicity Characteristic Leaching Procedure ) in an all-stock transaction. AT&T Wireless will also assume $2.1 billion in net debt and approximately $221 million in preferred securities. The boards of directors of both companies have approved the transaction and TeleCorp PCS shareowners representing a majority of the voting power have committed to vote in favor of upon the side of; favorable to; for the advantage of. See also: favor the acquisition. AT&T Wireless said it will offer TeleCorp PCS shareowners 0.9 shares of AT&T Wireless common stock for each share of TeleCorp PCS common stock. AT&T Wireless, which currently owns 23 percent of TeleCorp PCS, will issue approximately 146 million additional common shares to TeleCorp PCS shareowners upon closing of the transaction. The transaction is structured to be tax-free to TeleCorp PCS shareowners. The transaction is expected to close in the first quarter of 2002, pending approval from TeleCorp PCS shareowners and the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. . AT&T Interest in AT&T Wireless On December 24, 2001, AT&T announced that it had completed disposition of its remaining equity interest in AT&T Wireless. AT&T retained approximately $3 billion in AT&T Wireless shares at the time of the AT&T Wireless 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 this past July. Simultaneous with the split-off, AT&T executed a $1.6 billion debt-for-equity exchange transaction. At the same time, AT&T indicated its plan to monetize Monetize 1. To convert into money. 2. To convert from securities into currency that can be used to purchase goods and services. Notes: For example, you'll often hear Internet marketers talk about "monetizing website visitors. its remaining equity interest in the following months. AT&T said it monetized its remaining equity interest of approximately 91 million shares of AT&T Wireless at prevailing market prices. About AT&T Wireless AT&T Wireless (NYSE:AWE) is the largest independently traded wireless carrier in 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. , following our split from AT&T on July 9, 2001. We operate one of the largest digital wireless networks in North America. With more than 18.0 million subscribers, and full-year 2001 revenues exceeding $13.6 billion, AT&T Wireless is committed to being among the first to deliver the next generation of wireless products and services. Today, we offer customers high-quality mobile wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. services, voice or data, to businesses or consumers, in the U.S. and internationally. AT&T Wireless Customer Advantage is our commitment to ensure that customers have the right equipment, the right calling plan, and the right customer services options -- today and tomorrow. For more information, please visit us at www.attwireless.com. This press release contains "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 management with information that is currently available to management. Forward-looking statements include, without limitation, management's expectations regarding: our future financial and operating performance and financial condition, including specific projections and guidance for fiscal year 2002; subscriber growth; industry conditions; the strength of our balance sheet; and our liquidity and needs for additional financing. 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 Wireless' control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of a third-generation network and business technology, and the effects of vigorous competition in the markets in which we operate. For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless' filings with the Securities and Exchange Commission, including the information under the heading "Risk Factors" and "Special Note Regarding Forward Looking Statements" in its registration statement on Form S-3 filed on December 21, 2001. AT&T Wireless 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 Wireless executives will discuss the company's performance during a meeting today with financial analysts beginning at 8:00 a.m. -- EST EST electroshock therapy. EST abbr. electroshock therapy . Reporters are invited to listen to the call. To access the call, U.S. callers should dial 888/276-0010. International callers should dial 612/338-9017. The conference call will also be webcast on the AT&T Wireless Investor Relations Investor relations The process by which the corporation communicates with its investors. website at www.att.com/wirelessir. The 4Q Earnings Commentary will be available at www.att.com/wirelessir at approximately 6:00 a.m. EST on January 29, 2002.
AT&T Wireless Services, Inc. and Subsidiaries
Consolidated Statements of Operations
In millions, except per share amounts
Unaudited
For the
three months For the
ended year ended
December 31, December 31,
2001 2000 Change 2001 2000 Change
------ ------ ------ ------ ------ ------
REVENUE
Services $ 3,241 $ 2,634 23.1% $12,532 $9,374 33.7%
Equipment 287 339 (15.0%) 1,078 1,072 0.6%
Total revenue 3,528 2,973 18.7% 13,610 10,446 30.3%
OPERATING EXPENSES
Costs of services 1,093 843 29.8% 3,991 3,017 32.3%
Costs of equipment
sales 569 655 (13.3%) 2,037 2,041 (0.2%)
Selling, general and
administrative 1,207 1,098 10.0% 4,482 3,512 27.6%
Depreciation and
amortization 696 451 53.9% 2,502 1,639 52.7%
Total operating
expenses 3,565 3,047 17.0% 13,012 10,209 27.5%
OPERATING (LOSS)
INCOME (37) (74) (52.8%) 598 237 153.0%
Other income 48 222 (78.4%) 374 534 (30.0%)
Interest expense 99 12 718.8% 386 85 353.6%
(LOSS) INCOME FROM
CONTINUING OPERATIONS
BEFORE INCOME TAXES AND
NET EQUITY (LOSSES)
EARNINGS FROM
INVESTMENTS IN
UNCONSOLIDATED
SUBSIDIARIES (88) 136 (164.7%) 586 686 (14.5%)
Provision for income
taxes 18 13 56.2% 311 246 26.8%
Net equity (losses)
earnings from investments
in unconsolidated
subsidiaries (249) 365 (168.3%) (75) 388 (119.4%)
(LOSS) INCOME FROM
CONTINUING
OPERATIONS (355) 488 (172.8%) 200 828 (75.8%)
Loss from operations of
discontinued business,
net of tax (58) (77) (24.0%) (273) (170) 61.0%
Loss on disposal of
discontinued business,
net of tax (814) -- n/m (814) -- n/m
LOSS FROM DISCONTINUED
OPERATIONS (872) (77) 1036.8% (1,087) (170) 540.0%
NET (LOSS) INCOME (1,227) 411 (398.2%) (887) 658 (234.7%)
Dividend requirements
on preferred stock held
by AT&T, net -- 42 n/m 76 130 (41.1%)
NET (LOSS) INCOME
AVAILABLE TO COMMON
SHAREOWNERS ($1,227) $ 369 (431.8%) ($963) $ 528 (282.1%)
(LOSS) INCOME PER BASIC AND DILUTED SHARE:
(Loss) income from
continuing operations
available to common
shareowners $(0.14) $ 0.18 $ 0.05 $ 0.28
Loss from
discontinued
operations $(0.34) $ (0.03) $ (0.43) $(0.07)
Net (loss) income
available to common
shareowners $(0.48) $ 0.15 $ (0.38) $ 0.21
WEIGHTED AVERAGE SHARES USED TO COMPUTE
NET (LOSS) INCOME PER SHARE:
Basic 2,530 2,530 2,530 2,530
Diluted 2,530 2,532 2,532 2,532
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