{ "docId": "019de514-cad9-7616-bfa9-b755ea9fe32b", "docSlug": "90f2f939bb397eb2625a110501061b83", "documentTitle": "AT&T | Results Presentation Deck | 14 slides", "authorId": "at-t", "authorName": "AT&T", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2023-01-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 13, "pageCount": 14, "prevPage": 12, "nextPage": 14, "slideType": "appendix", "function": "appendix", "density": "dense", "nDataPoints": 26, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de514-cad9-7616-bfa9-b755ea9fe32b/13", "deckHref": "/decks/019de514-cad9-7616-bfa9-b755ea9fe32b", "deckJsonHref": "/decks/019de514-cad9-7616-bfa9-b755ea9fe32b.json", "deckAnchorHref": "/decks/019de514-cad9-7616-bfa9-b755ea9fe32b#slide-13", "components": [ { "bbox": { "h": 0.83, "w": 0.92, "x": 0.05, "y": 0.09 }, "kind": "list", "text": "1. \"Standalone AT&T\" results reflect the historical operating results of the company presented as continuing operations, and excludes U.S. Video and other 2021 dispositions included in Corporate and Other. Standalone AT&T results are presented to provide 2021 full-year results that are comparable to 2022 continuing operations financial data. For the current and future quarters and 2022, \"standalone AT&T\" is the same as Continuing Operations. See our Form 8-K dated January 25, 2023, for further discussion and information.\na) Standalone AT&T revenues for 2021 of $118.2 billion is calculated as operating revenues from continuing operations of $134.0 billion less revenues of $15.8 billion from U.S. Video and other divested businesses.\nb) Standalone AT&T Adjusted diluted EPS for 2021 of $2.41 is calculated as Diluted EPS from continuing operations of $3.02 adjusted for: (1) $0.09 proportionate share of intangible amortization at the DIRECTV equity method investment, $0.03 impact of Accounting Standards Update (ASU) No. 2020-06, and $0.02 asset impairments, minus $0.42 actuarial gain on benefit plans, $0.08 benefit from tax items, $0.03 of benefit-related and other costs, and (2) less $0.22 of adjustments to exclude operating income of U.S. Video (including estimated retained costs) and other dispositions, and include our estimate of equity in net income from DIRECTV investment.\n2. Net Debt of $132.2 billion at December 31, 2022 is calculated as Total Debt of $135.9 billion less Cash and Cash Equivalents of $3.7 billion. Net Debt of $156.4 billion at December 31, 2021 is calculated as Total Debt of $175.6 billion less Cash and Cash Equivalents of $19.2 billion.\n3. Free cash flow is a non-GAAP financial measure that is frequently used by investors and credit rating agencies to provide relevant and useful information. In 4Q22, free cash flow is cash from operating activities from continuing operations of $10.3 billion, plus cash distributions from DIRECTV classified as investing activities of $0.4 billion, minus capital expenditures from continuing operations of $4.2 billion and cash paid for vendor financing of $0.5 billion. In 2022, free cash flow is cash from operating activities from continuing operations of $35.8 billion, plus cash distributions from DIRECTV classified as investing activities of $2.6 billion, minus capital expenditures from continuing operations of $19.6 billion and cash paid for vendor financing of $4.7 billion. Due to high variability and difficulty in predicting items that impact cash from operating activities, cash distributions from DIRECTV, capital expenditures and vendor financing payments, the company is not able to provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.\n4. EBITDA, EBITDA Margin and adjusted operating income are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures are provided in the Financial and Operational Schedules & Non-GAAP Reconciliations document on the company's Investor Relations website, investors.att.com. Adjusted EBITDA is calculated by excluding from operating revenues and operating expenses certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, significant abandonments and impairment, benefit-related gains and losses, employee separation and other material gains and losses. For 2022, Adjusted EBITDA was $41.5 billion (See our Form 8-K dated January 25, 2023, for further discussion and information). EBITDA and Adjusted EBITDA estimates depend on future levels of revenues and expenses which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected EBITDA and projected Adjusted EBITDA and the most comparable GAAP metrics without unreasonable effort.\n5. Capital investment includes capital expenditures and cash paid for vendor financing. Capital investment included vendor financing payments of $0.5 billion in 4Q22 and $4.7 billion in 2022. For 2023, Capital Investment is expected to be consistent with 2022 levels. Due to high variability and difficulty in predicting items that impact capital expenditures and vendor financing payments, the company is not able to provide a reconciliation between projected capital investment and the most comparable GAAP metrics without unreasonable effort.\n6. Adjusted EPS from continuing operations is calculated by excluding from operating revenues, operating expenses and income tax expense certain significant items that are non-operational or non-recurring in nature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairment, severance and other material gains and losses. The company expects adjustments to 2023 reported diluted EPS to include our proportionate share of intangible amortization at the DIRECTV equity method investment in the range of $1.3 billion, a non-cash mark-to-market benefit plan gain/loss, the impact of ASU No. 2020-06, and other items. The company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably estimable at this time, to be a significant item. Our projected 2023 Adjusted EPS depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between these projected non-GAAP metrics and the reported GAAP metrics without unreasonable effort.", "attrs": null, "subkind": "numbered", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "938dcb49-a1b1-429f-b62d-04b8f5bd4c25", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.76, "x": 0.05, "y": 0.94 }, "kind": "source-note", "text": "© 2023 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b1f3ba2d-2a09-4ee9-b9e4-f8323886338d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.13, "x": 0.05, "y": 0.03 }, "kind": "title", "text": "Notes", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4ab916ea-96d7-443c-8f93-8138f0dd985b", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }