{ "docId": "019de518-8d4d-72af-8666-e5adbf42f14b", "docSlug": "110abbd03f703d7f648ed1ef2fb947ab", "documentTitle": "AT&T | Results Presentation Deck | 16 slides", "authorId": "at-t", "authorName": "AT&T", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2024-10-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 15, "pageCount": 16, "prevPage": 14, "nextPage": 16, "slideType": "appendix_disclosure", "function": "appendix", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de518-8d4d-72af-8666-e5adbf42f14b/15", "deckHref": "/decks/019de518-8d4d-72af-8666-e5adbf42f14b", "deckJsonHref": "/decks/019de518-8d4d-72af-8666-e5adbf42f14b.json", "deckAnchorHref": "/decks/019de518-8d4d-72af-8666-e5adbf42f14b#slide-15", "components": [ { "bbox": { "h": 0.03, "w": 0.952, "x": 0.017, "y": 0.89 }, "kind": "disclaimer", "text": "Reconciliations of non-GAAP financial measures cited in this document to the most directly comparable GAAP financial measures can be found at https://investors.att.com and in our Form 8-K dated October 23,\n2024. All AT&T consolidated metrics discussed above represent continuing operations.", "attrs": {}, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "794c46b9-78c4-4814-88c2-abbb5b216f2d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.17, "w": 0.93, "x": 0.039, "y": 0.315 }, "kind": "paragraph", "text": "2. EBITDA, EBITDA margin, EBITDA service margin, adjusted EBITDA, adjusted EBITDA margin and adjusted operating income margin are non-GAAP financial measures that are frequently used by investors and credit\nrating agencies to provide relevant and useful information. Adjusted EBITDA margin is adjusted EBITDA divided by total operating revenues. Adjusted EBITDA is calculated by excluding from operating revenues\nand 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\nimpairments, benefit-related gains and losses, employee separation and other material gains and losses. For 3Q24, adjusted EBITDA of $11.6 billion is calculated as net income of $0.1 billion, plus income tax\nexpense of $1.3 billion, plus interest expense of $1.7 billion, minus equity in net income of affiliates of $0.3 billion, minus other income (expense) - net of $0.7 billion, plus depreciation and amortization of $5.1\nbillion, plus adjustments of $4.4 billion. For 3Q23, adjusted EBITDA of $11.2 billion is calculated as net income of $3.8 billion, plus income tax expense of $1.2 billion, plus interest expense of $1.7 billion, minus equity\nin net income of affiliates of $0.4 billion, minus other income (expense) - net of $0.4 billion, plus depreciation and amortization of $4.7 billion, plus adjustments of $0.7 billion.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3753ac20-c3c9-453e-b6d8-2f6b16ce0d57", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.14, "w": 0.93, "x": 0.039, "y": 0.487 }, "kind": "paragraph", "text": "3. Adjusted EPS is calculated by excluding from operating revenues, operating expenses, other income (expenses) and income tax expense, certain significant items that are non-operational or non-recurring in\nnature, including dispositions and merger integration and transaction costs, actuarial gains and losses, significant abandonments and impairments, benefit-related gains and losses, employee separation and\nother material gains and losses. The company expects adjustments to 2024 reported diluted EPS to include our proportionate share of intangible amortization at the DIRECTV equity method investment of $0.8\nbillion, a non-cash mark-to-market benefit plan gain/loss, and other items. The company expects the mark-to-market adjustment, which is driven by interest rates and investment returns that are not reasonably\nestimable at this time, to be a significant item. Our projected 2024 Adjusted EPS depends on future levels of revenues and expenses, most of which are not reasonably estimable at this time. Accordingly, we\ncannot provide a reconciliation between these projected non-GAAP metrics and the reported GAAP metrics without unreasonable effort.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "50b91ef9-db2a-479c-b688-de2869152298", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.93, "x": 0.039, "y": 0.79 }, "kind": "paragraph", "text": "6. As a supplemental presentation to our Communications segment operating results, AT&T Business Solutions results are provided in the Financial and Operational Schedules & Non-GAAP Reconciliations\ndocument on the company's Investor Relations website, investors.att.com. AT&T Business Solutions includes both wireless and fixed operations and is calculated by combining our Mobility and Business Wireline\noperating units and then adjusting to remove non-business operations. This combined view presents a complete profile of the entire business customer relationship and underscores the importance of mobile\nsolutions to serving our business customers.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "66b50b5c-ace0-4a42-8ecb-4c2f4169c148", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.93, "x": 0.039, "y": 0.63 }, "kind": "paragraph", "text": "4. 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 3Q24, free cash flow of $5.1 billion is cash from\noperating activities of $10.2 billion, plus cash distributions from DIRECTV classified as investing activities of $0.3 billion, minus capital expenditures of $5.3 billion and cash paid for vendor financing of $0.2 billion.\nDue 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\nto provide a reconciliation between projected free cash flow and the most comparable GAAP metric without unreasonable effort.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "748b6ed7-8766-4f88-9c1a-62488794c8d9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.93, "x": 0.039, "y": 0.73 }, "kind": "paragraph", "text": "5. Capital investment includes capital expenditures and cash paid for vendor financing ($0.2 billion in 3Q24 and $1.0 billion in 3Q23). Due to high variability and difficulty in predicting items that impact capital\nexpenditures 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.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "831a043d-e2de-4766-9d12-28afdf2cd6b9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.17, "w": 0.93, "x": 0.039, "y": 0.143 }, "kind": "paragraph", "text": "1. Net debt-to-adjusted EBITDA ratios are non-GAAP financial measures that are frequently used by investors and credit rating agencies to provide relevant and useful information. Our net debt-to-adjusted EBITDA\nratio is calculated by dividing net debt by the sum of the most recent four quarters of adjusted EBITDA (defined below). Net debt is calculated by subtracting cash and cash equivalents and time deposits (deposits\nat financial institutions that are greater than 90 days, e.g., certificates of deposit and time deposits), from total debt. Net debt of $125.8 billion at September 30, 2024 is calculated as total debt of $129.0 billion less\ncash and cash equivalents of $2.6 billion and time deposits of $0.7 billion. Adjusted EBITDA was $11.6 billion for 3Q24, $11.3 billion for 2Q24, $11.0 billion for 1Q24, and $10.6 billion for 4Q23. Net debt of $128.7 billion\nat September 30, 2023 is calculated as total debt of $138.0 billion less Cash and Cash Equivalents of $7.5 billion and time deposits of $1.8 billion. Adjusted EBITDA was $11.2 billion for 3Q23, $11.1 billion for 2Q23,\n$10.6 billion for 1Q23, and $10.2 billion for 4Q22. Net debt of $126.9 billion at June 30, 2024 is calculated as total debt of $130.6 billion less cash and cash equivalents of $3.1 billion and time deposits of $0.7 billion. Net\ndebt and Adjusted EBITDA estimates depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between\nprojected Adjusted EBITDA and net debt-to-adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fb9b5bc8-9cf3-4335-977e-c36009c3d82b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.013, "w": 0.619, "x": 0.101, "y": 0.953 }, "kind": "source-note", "text": "© 2024 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": {}, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e19e0406-dc33-4504-8f1c-15c8281a4871", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.12, "x": 0.039, "y": 0.036 }, "kind": "title", "text": "Notes", "attrs": {}, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "514705c1-4013-4d9c-bb7f-e110ac2827b1", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 15, "from": 15, "beatId": "d0953606-d81e-460b-8115-8a8520963799", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Appendix Disclosure", "beatSlug": null, "evidence": "The presentation includes appendix disclosures.", "position": 3, "confidence": 0.7, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }