AT&T 8K Delivers Strong First-Quarter Cash from Operations and Free Cash Flow Powered by 5G and Fiber Growth | T 24 Apr 24


AT&T Inc.
Financial Data

Consolidated Statements of Income
Dollars in millions except per share amounts
Unaudited	First Quarter			Percent
		2024		2023		Change
Operating Revenues
Service		$	24,842	$	24,617	0.9	%
Equipment		5,186		5,522		(6.1)	%
Total Operating Revenues		30,028		30,139		(0.4)	%

Operating Expenses
Cost of revenues
Equipment		5,143		5,658		(9.1)	%

Other cost of revenues (exclusive of depreciation and amortization shown separately below)		6,811		6,673		2.1	%
Selling, general and administrative		7,021		7,175		(2.1)	%
Asset impairments and abandonments and restructuring		159		—		—	%
Depreciation and amortization		5,047		4,631		9.0	%
Total Operating Expenses		24,181		24,137		0.2	%
Operating Income		5,847		6,002		(2.6)	%
Interest Expense		1,724		1,708		0.9	%
Equity in Net Income of Affiliates		295		538		(45.2)	%
Other Income (Expense) — Net		451		935		(51.8)	%
Income Before Income Taxes		4,869		5,767		(15.6)	%
Income Tax Expense		1,118		1,314		(14.9)	%


Net Income		3,751		4,453		(15.8)	%
Less: Net Income Attributable to Noncontrolling Interest		(306)		(225)		(36.0)	%
Net Income Attributable to AT&T		$	3,445	$	4,228	(18.5)	%
Less: Preferred Stock Dividends		(50)		(52)		3.8	%
Net Income Attributable to Common Stock		$	3,395	$	4,176	(18.7)	%




Basic Earnings Per Share Attributable to Common Stock		$	0.47	$	0.58	(19.0)	%
Weighted Average Common Shares Outstanding (000,000)		7,192		7,168		0.3	%



Diluted Earnings Per Share Attributable to Common Stock		$	0.47	$	0.57	(17.5)	%
Weighted Average Common Shares Outstanding with Dilution (000,000)		7,193		7,474		(3.8)	%


AT&T Inc.
Financial Data

Consolidated Balance Sheets
Dollars in millions
	Mar. 31,		Dec. 31,
	2024		2023
Assets	(Unaudited)
Current Assets
Cash and cash equivalents	$	3,520	$	6,722
Accounts receivable – net of related allowances for credit loss of $463 and $499	9,577		10,289
Inventories	2,127		2,177
Prepaid and other current assets	15,221		17,270
Total current assets	30,445		36,458
Property, Plant and Equipment – Net	127,851		128,489
Goodwill – Net	67,854		67,854
Licenses – Net	127,423		127,219
Other Intangible Assets – Net	5,281		5,283
Investments in and Advances to Equity Affiliates	891		1,251
Operating Lease Right-Of-Use Assets	20,668		20,905

Other Assets	19,015		19,601
Total Assets	$	399,428	$	407,060
Liabilities and Stockholders’ Equity
Current Liabilities
Debt maturing within one year	$	7,060	$	9,477

Accounts payable and accrued liabilities	31,973		35,852
Advanced billings and customer deposits	3,713		3,778
Dividends payable	2,088		2,020
Total current liabilities	44,834		51,127
Long-Term Debt	125,704		127,854
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	58,820		58,666
Postemployment benefit obligation	8,743		8,734
Operating lease liabilities	17,291		17,568
Other noncurrent liabilities	23,441		23,696
Total deferred credits and other noncurrent liabilities	108,295		108,664
Redeemable Noncontrolling Interest	1,975		1,973
Stockholders’ Equity
Preferred stock	—		—
Common stock	7,621		7,621
Additional paid-in capital	111,599		114,519
Retained (deficit) earnings	(1,570)		(5,015)
Treasury stock	(15,277)		(16,128)
Accumulated other comprehensive income	2,167		2,300
Noncontrolling interest	14,080		14,145
Total stockholders’ equity	118,620		117,442
Total Liabilities and Stockholders’ Equity	$	399,428	$	407,060


AT&T Inc.
Financial Data

Consolidated Statements of Cash Flows
Dollars in millions
Unaudited	First Quarter
	2024		2023
Operating Activities
Net income	$	3,751	$	4,453
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,047		4,631


Provision for uncollectible accounts	472		477
Deferred income tax expense	479		529
Net (gain) loss on investments, net of impairments	201		(93)
Pension and postretirement benefit expense (credit)	(471)		(670)

Asset impairments and abandonments and restructuring	159		—
Changes in operating assets and liabilities:
Receivables	512		620
Other current assets	629		364
Accounts payable and other accrued liabilities	(3,497)		(3,409)
Equipment installment receivables and related sales	24		(243)
Deferred customer contract acquisition and fulfillment costs	103		(22)
Postretirement claims and contributions	(54)		(89)
Other - net	192		130
Total adjustments	3,796		2,225
Net Cash Provided by Operating Activities	7,547		6,678

Investing Activities
Capital expenditures	(3,758)		(4,335)
Acquisitions, net of cash acquired	(211)		(291)
Dispositions	8		15
Distributions from DIRECTV in excess of cumulative equity in earnings	194		774
(Purchases), sales and settlements of securities and investments - net	1,079		19
Other - net	(273)		—
Net Cash Used in Investing Activities	(2,961)		(3,818)

Financing Activities
Net change in short-term borrowings with original maturities of three months or less	1,933		(536)
Issuance of other short-term borrowings	491		3,627
Repayment of other short-term borrowings	(1,996)		—
Issuance of long-term debt	—		3,366
Repayment of long-term debt	(4,685)		(5,945)
Repayment of note payable to DIRECTV	—		(130)
Payment of vendor financing	(841)		(2,113)
Purchase of treasury stock	(157)		(188)
Issuance of treasury stock	—		3


Dividends paid	(2,034)		(2,014)
Other - net	(526)		219
Net Cash Used in Financing Activities	(7,815)		(3,711)
Net increase (decrease) in cash and cash equivalents and restricted cash	(3,229)		(851)






Cash and cash equivalents and restricted cash beginning of year	6,833		3,793
Cash and Cash Equivalents and Restricted Cash End of Period	$	3,604	$	2,942


AT&T Inc.
Consolidated Supplementary Data

Supplementary Financial Data
Dollars in millions except per share amounts
Unaudited	First Quarter				Percent
		2024			2023			Change
Capital expenditures
Purchase of property and equipment		$	3,721		$	4,291		(13.3)	%
Interest during construction		37			44			(15.9)	%
Total Capital Expenditures		$	3,758		$	4,335		(13.3)	%

Acquisitions, net of cash acquired
Business acquisitions		$	—		$	—		—	%
Spectrum acquisitions		145			63			—	%
Interest during construction - spectrum		66			228			(71.1)	%
Total Acquisitions		$	211		$	291		(27.5)	%

Cash paid for interest		$	2,077		$	1,971		5.4	%

Cash paid for income taxes, net of (refunds)		$	(9)		$	10		—	%

Dividends Declared per Common Share		$	0.2775		$	0.2775		—	%

End of Period Common Shares Outstanding (000,000)		7,170			7,149			0.3	%
Debt Ratio		52.4		%	55.9		%	(350)	BP
Total Employees		148,290			157,790			(6.0)	%

COMMUNICATIONS SEGMENT

The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the U.S. and businesses globally. The Communications segment contains three reporting units: Mobility, Business Wireline and Consumer Wireline.


Segment Results
Dollars in millions
Unaudited	First Quarter			Percent
		2024		2023		Change
Segment Operating Revenues
Mobility		$	20,594	$	20,582	0.1	%
Business Wireline		4,913		5,331		(7.8)	%
Consumer Wireline		3,350		3,239		3.4	%
Total Segment Operating Revenues		28,857		29,152		(1.0)	%

Segment Operating Income
Mobility		6,468		6,271		3.1	%
Business Wireline		64		378		(83.1)	%
Consumer Wireline		213		94		—	%
Total Segment Operating Income		$	6,745	$	6,743	—	%


Supplementary Operating Data
Subscribers and connections in thousands
Unaudited		March 31,		Percent
		2024	2023	Change
Broadband Connections
Broadband		15,143	15,061	0.5	%
DSL		191	284	(32.7)	%
Total Broadband Connections		15,334	15,345	(0.1)	%

Voice Connections
Retail Consumer Switched Access Lines		3,934	4,938	(20.3)	%
Consumer VoIP Connections		2,467	2,835	(13.0)	%
Total Retail Consumer Voice Connections		6,401	7,773	(17.7)	%

	First Quarter		Percent
		2024	2023	Change
Broadband Net Additions
Broadband		65	(14)	—	%
DSL		(19)	(27)	29.6	%
Total Broadband Net Additions		46	(41)	—	%

Mobility

Mobility provides nationwide wireless service and equipment.


Mobility Results
Dollars in millions
Unaudited	First Quarter				Percent
		2024			2023			Change
Operating Revenues
Service		$	15,994		$	15,483		3.3	%
Equipment		4,600			5,099			(9.8)	%
Total Operating Revenues		20,594			20,582			0.1	%

Operating Expenses
Operations and support		11,639			12,213			(4.7)	%
Depreciation and amortization		2,487			2,098			18.5	%
Total Operating Expenses		14,126			14,311			(1.3)	%
Operating Income		$	6,468		$	6,271		3.1	%

Operating Income Margin		31.4		%	30.5		%	90	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited	March 31,				Percent
		2024			2023			Change
Mobility Subscribers
Postpaid		87,450			85,421			2.4	%
Postpaid phone		71,558			70,049			2.2	%
Prepaid		19,211			19,200			0.1	%
Reseller		7,852			6,192			26.8	%
Total Mobility Subscribers1		114,513			110,813			3.3	%
1Effective with our first-quarter 2024 reporting, we have removed connected devices from our total Mobility subscribers, consistent with industry standards and our key performance metrics. Connected devices include data-centric devices such as session-based tablets, monitoring devices and primarily wholesale automobile systems.


	First Quarter				Percent
		2024			2023			Change
Mobility Net Additions
Postpaid Phone Net Additions		349			424			(17.7)	%
Total Phone Net Additions		350			464			(24.6)	%

Postpaid		389			542			(28.2)	%
Prepaid		1			40			(97.5)	%
Reseller		351			108			—	%
Total Mobility Net Additions1		741			690			7.4	%

Postpaid Churn		0.89		%	0.99		%	(10) BP
Postpaid Phone-Only Churn		0.72		%	0.81		%	(9) BP
1Excludes migrations between wireless subscriber categories, including connected devices, and acquisition-related activity during the period.

Business Wireline

Business Wireline provides advanced ethernet-based fiber services, IP Voice and managed professional services, as well as our fixed wireless access product and traditional voice and data services and related equipment to business customers.


Business Wireline Results
Dollars in millions
Unaudited	First Quarter				Percent
		2024			2023			Change
Operating Revenues
Service		$	4,700		$	5,200		(9.6)	%
Equipment		213			131			62.6	%
Total Operating Revenues		4,913			5,331			(7.8)	%

Operating Expenses
Operations and support		3,487			3,623			(3.8)	%
Depreciation and amortization		1,362			1,330			2.4	%
Total Operating Expenses		4,849			4,953			(2.1)	%
Operating Income		$	64		$	378		(83.1)	%

Operating Income Margin		1.3		%	7.1		%	(580)	BP

Consumer Wireline

Consumer Wireline provides broadband services, including fiber connections that provide multi-gig services to residential customers in select locations and our fixed wireless access product that provides home internet services. Consumer Wireline also provides legacy telephony voice communication services.


Consumer Wireline Results
Dollars in millions
Unaudited	First Quarter				Percent
		2024			2023			Change
Operating Revenues
Broadband		$	2,722		$	2,527		7.7	%
Legacy voice and data services		342			396			(13.6)	%
Other service and equipment		286			316			(9.5)	%
Total Operating Revenues		3,350			3,239			3.4	%

Operating Expenses
Operations and support		2,256			2,284			(1.2)	%
Depreciation and amortization		881			861			2.3	%
Total Operating Expenses		3,137			3,145			(0.3)	%
Operating Income		$	213		$	94		—	%

Operating Income Margin		6.4		%	2.9		%	350	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited		March 31,						Percent
		2024			2023			Change
Broadband Connections
Total Broadband and DSL Connections		13,930			13,949			(0.1)	%
Broadband1		13,784			13,730			0.4	%
Fiber Broadband Connections		8,559			7,487			14.3	%

Voice Connections
Retail Consumer Switched Access Lines		1,553			1,921			(19.2)	%
Consumer VoIP Connections		1,869			2,212			(15.5)	%
Total Retail Consumer Voice Connections		3,422			4,133			(17.2)	%
1 Includes AT&T Internet Air

	First Quarter				Percent
		2024			2023			Change
Broadband Net Additions
Total Broadband and DSL Net Additions		40			(42)			—	%
Broadband Net Additions1		55			(23)			—	%
Fiber Broadband Net Additions		252			272			(7.4)	%
1 Includes AT&T Internet Air

LATIN AMERICA SEGMENT

The segment provides wireless services and equipment to customers in Mexico.


Segment Results
Dollars in millions
Unaudited	First Quarter				Percent
		2024			2023			Change
Operating Revenues
Wireless service		$	690		$	591		16.8	%
Wireless equipment		373			292			27.7	%
Total Segment Operating Revenues		1,063			883			20.4	%

Operating Expenses
Operations and support		883			738			19.6	%
Depreciation and amortization		177			175			1.1	%
Total Segment Operating Expenses		1,060			913			16.1	%
Operating Income (Loss)		$	3		$	(30)		—	%

Operating Income Margin		0.3		%	(3.4)		%	370	BP

Supplementary Operating Data
Subscribers and connections in thousands
Unaudited		March 31,						Percent
		2024			2023			Change
Mexico Wireless Subscribers
Postpaid		5,352			4,973			7.6	%
Prepaid		16,742			16,146			3.7	%
Reseller		365			494			(26.1)	%
Total Mexico Wireless Subscribers		22,459			21,613			3.9	%

	First Quarter				Percent
		2024			2023			Change
Mexico Wireless Net Additions
Postpaid		116			49			—	%
Prepaid		79			(58)			—	%
Reseller		(52)			19			—	%
Total Mexico Wireless Net Additions		143			10			—	%

SUPPLEMENTAL SEGMENT RECONCILIATION


Three Months Ended
Dollars in millions
Unaudited
March 31, 2024
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	20,594	$	11,639	$	8,955	$	2,487	$	6,468
Business Wireline	4,913		3,487		1,426		1,362		64
Consumer Wireline	3,350		2,256		1,094		881		213
Total Communications	28,857		17,382		11,475		4,730		6,745
Latin America - Mexico	1,063		883		180		177		3
Segment Total	29,920		18,265		11,655		4,907		6,748
Corporate and Other
Corporate:
DTV-related retained costs	—		134		(134)		120		(254)
Parent administration support	—		392		(392)		1		(393)
Securitization fees	26		165		(139)		—		(139)
Value portfolio	82		26		56		4		52
Total Corporate	108		717		(609)		125		(734)


Certain significant items	—		152		(152)		15		(167)

Total Corporate and Other	108		869		(761)		140		(901)
AT&T Inc.	$	30,028	$	19,134	$	10,894	$	5,047	$	5,847


March 31, 2023
	Revenues		Operations and Support Expenses		EBITDA		Depreciation and Amortization		Operating Income (Loss)
Communications
Mobility	$	20,582	$	12,213	$	8,369	$	2,098	$	6,271
Business Wireline	5,331		3,623		1,708		1,330		378
Consumer Wireline	3,239		2,284		955		861		94
Total Communications	29,152		18,120		11,032		4,289		6,743
Latin America - Mexico	883		738		145		175		(30)
Segment Total	30,035		18,858		11,177		4,464		6,713
Corporate and Other
Corporate:
DTV-related retained costs	—		169		(169)		144		(313)
Parent administration support	(9)		374		(383)		1		(384)
Securitization fees	19		121		(102)		—		(102)
Value portfolio	94		28		66		5		61
Total Corporate	104		692		(588)		150		(738)
Certain significant items	—		(44)		44		17		27
Total Corporate and Other	104		648		(544)		167		(711)
AT&T Inc.	$	30,139	$	19,506	$	10,633	$	4,631	$	6,002

AT&T (T) 8-KAT&T Delivers Strong First-Quarter Cash from Operations and Free Cash Flow Powered by 5G and Fiber Growth