Exhibit 99.1
News Release
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FOR RELEASE WEDNESDAY, JULY 20, 2005
AT&T Announces Second-Quarter 2005 Earnings
o Second-quarter earnings per diluted share of $0.38
o Consolidated revenue of $6.8 billion
o Operating income of $819 million
BEDMINSTER, N.J. -- AT&T (NYSE: T) today reported net income of $307 million, or
earnings per diluted share of $0.38, for the second quarter of 2005. This
performance includes the following pretax items:
o a loss of $206 million, or $0.15 per diluted share, related to debt
repurchases completed in the quarter
o "deal costs" of $59 million, or $0.06 per diluted share, related to
AT&T's pending merger with SBC Communications
o net restructuring and other charges of $36 million, or $0.03 per
diluted share, primarily related to facilities closings
When compared to last year, current quarter performance also reflects lower
pretax depreciation expense of $548 million, or $0.42 per diluted share,
resulting from asset impairment charges taken in the third quarter of 2004. The
company's current-quarter net income compares to net income of $108 million, or
earnings per diluted share of $0.14, in the second quarter of 2004, which
included a pretax restructuring charge of $54 million, or $0.04 per diluted
share.
"AT&T's second quarter results demonstrate our continued focus on executing in
the marketplace, managing costs, and strengthening our competitive position with
enterprise customers," said AT&T Chairman and Chief Executive Officer David W.
Dorman. "Given the overwhelming shareholder support we received for our merger
with SBC, we look forward to securing all appropriate regulatory approvals and
completing this transaction in a timely manner."
AT&T reported second-quarter 2005 consolidated revenue of $6.8 billion, which
included $5.2 billion from AT&T Business and $1.6 billion from AT&T Consumer.
Consolidated revenue declined 11.5 percent versus the second quarter of 2004,
primarily due to continued declines in long distance (LD) voice and data
revenue.
The company reported consolidated EBITDA, excluding $36 million of net
restructuring and other charges, of $1.5 billion in the second quarter of 2005,
for an EBITDA margin of 22.0 percent. EBITDA was negatively impacted by the $59
million of deal costs relating to the pending merger with SBC Communications.
This compares to consolidated EBITDA of $1.6 billion and an EBITDA margin of
21.4 percent in the prior-year second quarter, excluding net restructuring and
other charges of $54 million. The company noted that ongoing efforts to reduce
costs, including process improvement and related headcount reduction efforts, as
well as strategic reductions in marketing expenses within AT&T Consumer,
contributed to its improved EBITDA margin performance for the quarter.
AT&T's second-quarter 2005 operating income totaled $819 million, yielding a
consolidated operating margin of 12.1 percent. The operating margin was
negatively impacted by $59 million of deal costs related to the pending merger
with SBC Communications and $36 million of net restructuring and other charges,
and positively impacted by a benefit from lower depreciation of $548 million,
resulting from asset impairment charges taken during the third quarter of 2004.
The company's current-quarter performance compares to consolidated operating
income of $348 million and a margin of 4.6 percent in the prior-year second
quarter, which included $54 million of net restructuring and other charges.
AT&T UNIT HIGHLIGHTS
AT&T Business
o Revenue was $5.2 billion, a decline of 8.1 percent from the prior-year
second quarter, primarily driven by ongoing pricing pressure in traditional
voice and data services. Revenue was positively impacted by strong
year-over-year growth in IP&E services.
o Long distance voice revenue decreased 12.8 percent from the prior-year
second quarter. Growth rates were negatively affected by continued pricing
pressure, partially offset by a slight increase in overall volumes, as
growth in wholesale volumes more than offset the decline in retail volumes.
o Local voice revenue declined 9.9 percent from the prior-year second
quarter, reflecting declines in reciprocal compensation revenue, as well as
lower payphone-related revenue as a result of the sale of the company's
National Public Markets business. The decline also reflects the company's
ongoing strategy of selectively approaching the small business market,
placing a greater focus on profitability than overall market share. AT&T
continued to see the impact of this strategic change as the number of local
access lines declined.
o Data revenue declined 10.2 percent from the prior-year second quarter as a
result of pricing pressure and technology migration.
o IP&E-services revenue grew 9.5 percent over the prior-year second quarter,
reflecting AT&T's ongoing transformation to next-generation networking
services such as Enhanced Virtual Private Network (E-VPN) and IP-enabled
frame relay services, partially offset by declines in Managed Internet
Access.
o Operating income totaled $528 million for the second quarter of 2005,
yielding an operating margin of 10.2 percent, compared with operating
income of $152 million and an operating margin of 2.7 percent in the prior
year second quarter. Operating income was positively impacted in the second
quarter of 2005 by a $513 million net benefit from lower depreciation as a
result of asset impairment charges taken during the third quarter of 2004,
as well as an $18 million benefit from the reversal of net restructuring
and other charges, and was negatively impacted in the second quarter of
2004 by $52 million of net restructuring and other charges. Exclusive of
these items, the decline in operating income in the second quarter of 2005
reflects decreased long distance voice and data services revenue resulting
from continued competitive pricing pressures and favorable access expense
settlements in the second quarter of 2004.
o EBITDA, excluding net restructuring and other charges, was $1.1 billion
during the quarter, yielding a margin of 21.5 percent. This compares with
EBITDA, excluding net restructuring and other charges, of $1.4 billion in
the prior year second quarter, which yielded a margin of 24.6 percent.
o Capital expenditures were $387 million as AT&T Business continues to
upgrade its network and integrate its systems to further rationalize the
company's cost structure, improve the customer experience and support
growth in next-generation products and services.
o During the quarter, a number of sizable customer wins and contract
extensions were signed with such leading companies as Toyota Industries
Corporation, Bridgestone Group, Whirlpool, Prudential and Blue Cross Blue
Shield Association.
o According to a recent study of U.S.-based multinational corporations (MNCs)
published by the Yankee Group, AT&T is clearly the industry's leading
primary provider for business voice and data services, and cited as the
best-positioned global network provider by 60 percent of 270 U.S. based
MNCs polled.
AT&T Consumer
o Revenue was $1.6 billion, a decline of 20.8 percent versus the prior-year
second quarter, largely driven by a decline in standalone long distance
revenue due to volume declines associated with competitive customer losses
and the continued impact of wireless and Internet substitution, partially
offset by targeted price increases. Decreased bundled revenue also
contributed to the revenue decline.
o Operating income totaled $489 million, yielding an operating margin of 30.7
percent, compared with operating income of $240 million and an operating
margin of 11.9 percent in the prior-year second quarter. Current-quarter
operating income was negatively impacted by net restructuring and other
charges of $10 million and was positively impacted by a $35 million net
benefit from lower depreciation as a result of asset-impairment charges
taken during the third quarter of 2004.
o The year-over-year increase in operating income and margin reflects a
significant reduction in selling, general and administrative expenses,
primarily attributable to the strategic decision to discontinue marketing
for residential local and standalone long distance (LD) customers.
OTHER CONSOLIDATED FINANCIAL HIGHLIGHTS
o Based on the trends experienced through the first half of 2005, AT&T now
expects consolidated revenue for the full year to be at or slightly above
the high end of its original range of $25.0 - $26.0 billion.
o Free cash flow was $176 million for the quarter. Free cash flow is defined
as cash flows provided by operating activities of $548 million less cash
used for capital expenditures and other additions of $372 million.
o AT&T ended the quarter with net debt of $5.6 billion. Net debt is defined
as total debt of $7.7 billion less cash of $1.9 billion and net foreign
debt fluctuations of $0.2 billion.
o AT&T redeemed $1.25 billion in bonds tendered in a buyback offer that the
company completed in early April 2005. The buyback will reduce interest
expense by $0.1 billion throughout 2005 and resulted in a second quarter
pretax loss of $0.2 billion recorded in other (expense) income.
o Consolidated capital expenditures for the quarter were $393 million.
DEFINITIONS and NOTES
AT&T Business
LD Voice - includes all of AT&T's domestic and international LD revenue,
including Intralata toll when purchased as part of an LD calling plan.
Local Voice - includes all local calling and feature revenue, Intralata toll
when purchased as part of a local calling plan, as well as Inter-carrier local
revenue.
Data Services- includes bandwidth services (dedicated private line services
through high-capacity optical transport), frame relay and asynchronous transfer
mode (ATM) revenue for LD and local, as well as revenue for managed data
services.
Internet Protocol & Enhanced Services (IP&E-services) - includes all services
that ride on the IP common backbone or that use IP technology, including managed
IP services, as well as application services (e.g., hosting, security).
Outsourcing, Professional Services & Other - includes complex bundled solutions
primarily in the wide area/local area network space, AT&T's professional
services revenue associated with the company's federal government customers, as
well as all other Business Services revenue (and eliminations) not previously
defined.
Data, IP&E-Services - Percent Managed - managed services refers to AT&T's
management of a client's network or network and applications including
applications that extend to the customer premise equipment.
Data, IP&E-Services - Percent International - a data service that either
originates or terminates outside of the United States, or an IP&E-service
installed or wholly delivered outside the United States.
AT&T Consumer
Bundled Services - includes any customer with a local relationship as a starting
point, and all other AT&T subscription-based voice products provided to that
customer.
Standalone LD, Transactional & Other Services - includes any customer with
solely a long distance relationship, non-voice products, or a non
subscription-based relationship.
Local Customers - residential customers who subscribe to AT&T local service.
Other Definitions and Notes
EBITDA - represents operating income plus depreciation and amortization.
Foreign currency fluctuations - represents mark-to-market adjustments, net of
cash collateral collected, that increased the debt balance by approximately $0.2
billion at June 30, 2005, from December 31, 2004, on non-U.S. denominated debt
of about $0.6 billion. AT&T has entered into foreign exchange hedges that
substantially offset the fluctuations in the debt balance. The offsetting
mark-to-market adjustments of the hedges are included in "other current assets"
and "other assets" on the balance sheet.
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AT&T Corp. Consolidated Statements of Income (Unaudited)
Dollars in millions (except per share amounts)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
2005 2004 2005 2004
REVENUE
AT&T Business $ 5,155 $ 5,611 $ 10,474 $ 11,483
AT&T Consumer 1,593 2,011 3,278 4,118
Corporate and Other 12 14 23 25
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Total Revenue 6,760 7,636 13,775 15,626
OPERATING EXPENSES
Access and other connection 2,390 2,481 4,794 5,119
Costs of services and products 1,560 1,759 3,188 3,623
Selling, general and administrative 1,325 1,763 2,602 3,507
Depreciation and amortization 630 1,231 1,266 2,481
Asset impairment and net restructuring and other
charges 36 54 36 267
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Total operating expenses 5,941 7,288 11,886 14,997
Operating income 819 348 1,889 629
Other (expense) income, net (153) 36 (123) (138)
Interest (expense) (169) (191) (372) (419)
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Income before income taxes and net income related to
equity investments 497 193 1,394 72
(Provision) benefit for income taxes (198) (87) (566) 339
Minority interest income - 1 - 1
Net income related to equity investments 8 1 8 -
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Net income $ 307 $ 108 $ 836 $ 412
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Weighted-average common shares (millions) 801 794 801 794
Weighted-average common shares and potential common
shares (millions) 809 797 807 796
Earnings per basic and diluted share $ 0.38 $ 0.14 $ 1.04 $ 0.52
Dividends declared per share $0.2375 $0.2375 $ 0.4750 $ 0.4750
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AT&T Corp. Consolidated Statements of Operations (Unaudited)
Dollars in millions (except per share amounts)
2Q05 1Q05 4Q04 3Q04 2Q04 1Q04 2004
REVENUE
AT&T Business $ 5,155 $ 5,319 $ 5,454 $ 5,645 $ 5,611 $ 5,872 $ 22,582
AT&T Consumer 1,593 1,685 1,806 1,980 2,011 2,107 7,904
Corporate and Other 12 11 13 13 14 11 51
Total revenue 6,760 7,015 7,273 7,638 7,636 7,990 30,537
OPERATING EXPENSES
Access and other connection 2,390 2,404 2,924 2,411 2,481 2,638 10,454
Costs of services and products 1,560 1,628 1,668 1,783 1,759 1,864 7,074
Selling, general and administrative 1,325 1,277 1,397 1,653 1,763 1,744 6,557
Depreciation and amortization 630 636 640 647 1,231 1,250 3,768
Asset impairment and net restructuring and other charges 36 - 36 12,469 54 213 12,772
Total operating expenses 5,941 5,945 6,665 18,963 7,288 7,709 40,625
Operating income (loss) 819 1,070 608 (11,325) 348 281 (10,088)
Other (expense) income, net (153) 30 28 (34) 36 (174) (144)
Interest (expense) (169) (203) (192) (192) (191) (228) (803)
Income (loss) before income taxes, minority interest
income and net earnings (losses) related to equity
investments 497 897 444 (11,551) 193 (121) (11,035)
(Provision) benefit for income taxes (198) (368) (181) 4,402 (87) 426 4,560
Minority interest income - - - - 1 - 1
Net earnings (losses) related to equity investments 8 - 3 2 1 (1) 5
Net income (loss) $ 307 $ 529 $ 266 $ (7,147) $ 108 $ 304 $ (6,469)
Weighted-average common shares (millions) 801 800 797 795 794 793 795
Weighted-average common shares and potential common
shares (millions) 809 806 803 795 797 796 795
Earnings (loss) per basic and diluted share $ 0.38 $ 0.66 $ 0.33 $ (8.99) $ 0.14 $ 0.38 $ (8.14)
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AT&T Corp. Historical Segment Data (Unaudited)
Dollars in millions
2Q05 1Q05 4Q04 3Q04 2Q04 1Q04 2004
AT&T Business
LD Voice $ 2,080 $ 2,168 $ 2,163 $ 2,364 $ 2,386 $ 2,613 $ 9,526
Local Voice 364 371 490 390 404 389 1,673
Total Voice 2,444 2,539 2,653 2,754 2,790 3,002 11,199
Data Services 1,518 1,585 1,595 1,693 1,690 1,715 6,693
IP&E-Services 619 589 625 587 565 553 2,330
Total Data and IP&E-Services 2,137 2,174 2,220 2,280 2,255 2,268 9,023
Outsourcing, Professional Services & Other 574 606 581 611 566 602 2,360
Total revenue 5,155 5,319 5,454 5,645 5,611 5,872 22,582
Operating income (loss)(1)(5) 528 588 781 (11,095) 152 83 (10,079)
Operating margin 10.2% 11.0% 14.3% (196.5%) 2.7% 1.4% (44.6%)
Capital expenditures 387 332 377 391 463 470 1,701
Depreciation & amortization (5) 596 601 607 610 1,176 1,192 3,585
Total Data and IP&E-Services - % managed 32% 32% 33% 32% 32% 32% 32%
Total Data and IP&E-Services - % international 16% 16% 16% 15% 15% 15% 15%
LD volume growth - yr/yr 1% -3% -2% -2% 0% 2% 0%
LD volume % wholesale 59% 57% 57% 56% 54% 54% 55%
AT&T Consumer
Standalone LD, Transactional and Other Services $ 974 $ 1,025 $ 1,116 $ 1,256 $ 1,327 $ 1,462 $ 5,161
Bundled Services 619 660 690 724 684 645 2,743
Total revenue 1,593 1,685 1,806 1,980 2,011 2,107 7,904
Operating income (loss)(2)(5)(6) 489 575 (60) 281 240 371 832
Operating margin 30.7% 34.1% (3.3%) 14.2% 11.9% 17.6% 10.5%
Capital expenditures - - 5 9 15 13 42
Depreciation & amortization (5) 14 12 13 15 33 32 93
Local customers (in thousands) 3,565 3,859 4,156 4,477 4,677 4,364 4,156
Corporate and Other
Revenue $ 12 $ 11 $ 13 $ 13 $ 14 $ 11 $ 51
Operating (loss)(3) (198) (93) (113) (511) (44) (173) (841)
Capital expenditures 6 3 14 6 2 2 24
Depreciation & amortization 20 23 20 22 22 26 90
Total AT&T
Revenue $ 6,760 $ 7,015 $ 7,273 $ 7,638 $ 7,636 $ 7,990 $ 30,537
Operating income (loss)(4)(6) 819 1,070 608 (11,325) 348 281 (10,088)
Operating margin 12.1% 15.3% 8.4% (148.3%) 4.6% 3.5% (33.0%)
Capital expenditures 393 335 396 406 480 485 1,767
Depreciation & amortization (5) 630 636 640 647 1,231 1,250 3,768
<FN>
(1) Includes asset impairment and net restructuring and other charges of $(18M) in 2Q05, $9M in 4Q04, $11,859M in 3Q04, $52M
in 2Q04 and $91M in 1Q04, totaling $12,011M in 2004.
(2) Includes asset impairment and net restructuring and other charges of $10M in 2Q05, $188M in 3Q04 and $1M in 1Q04, totaling $189M
in 2004.
(3) Includes asset impairment and net restructuring and other charges of $44M in 2Q05, $27M in 4Q04, $422M in 3Q04, $2M in 2Q04 and
$121M in 1Q04, totaling $572M in 2004.
(4) Includes asset impairment and net restructuring and other charges of $36M in 2Q05, $36M in 4Q04, $12,469M in 3Q04, $54M in 2Q04
and $213M in 1Q04, totaling $12,772M in 2004.
(5) As a result of the third-quarter 2004 asset impairment charge, second-quarter 2005, first-quarter 2005, fourth-quarter 2004 and
third-quarter 2004 depreciation and amortization expense decreased by $542 million, $533 million, $538 million and $527 million,
respectively, for AT&T Business and $6 million, $7 million, $8 million and $10 million, respectively, for AT&T Consumer. In
addition, as a result of the transport service arrangement between AT&T Business and AT&T Consumer, network-related charges from
AT&T Business (recorded as contra-expense) to AT&T Consumer were reduced by $29 million, $24 million, $30 million and $28
million in the second-quarter 2005, first-quarter 2005, fourth-quarter 2004 and third-quarter 2004, respectively, as a result of
the lower depreciation and amortization expense recorded by AT&T Business. This resulted in a reduction in AT&T Business'
operating income and an increase in AT&T Consumer's operating income.
(6) Includes $553M prepaid card accrual in 4Q04.
</FN>
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AT&T Corp. Consolidated Balance Sheets (Unaudited)
Dollars in millions
June 30, December 31,
2005 2004
ASSETS
Cash and cash equivalents $ 1,913 $ 3,698
Accounts receivable, less allowances of $429 and $523 2,993 3,195
Deferred income taxes 922 1,111
Other current assets 498 1,383
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Total Current Assets 6,326 9,387
Property, plant and equipment, net of accumulated
depreciation of $2,353 and $1,588 11,026 11,509
Goodwill 4,751 4,888
Other purchased intangible assets, net of accumulated amortization
of $411 and $428 316 375
Prepaid pension costs 4,099 3,991
Other assets 2,563 2,654
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TOTAL ASSETS $ 29,081 $ 32,804
==============================
LIABILITIES
Accounts payable and accrued expenses $ 2,365 $ 2,716
Compensation and benefit-related liabilities 1,661 2,193
Debt maturing within one year 529 1,886
Other current liabilities 2,309 2,293
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Total Current Liabilities 6,864 9,088
Long-term debt 7,175 8,779
Long-term compensation and benefit-related liabilities 3,283 3,322
Deferred income taxes 1,448 1,356
Other long-term liabilities and deferred credits 2,832 3,240
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Total Liabilities 21,602 25,785
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SHAREOWNERS' EQUITY
Common Stock, $1 par value, authorized 2,500,000,000 shares; issued and
outstanding 801,635,543 shares (net of 171,983,367 treasury shares) at
June 30, 2005 and 798,570,623 shares (net of 171,983,367 treasury shares)
at December 31, 2004 802 799
Additional paid-in capital 26,911 27,170
Accumulated deficit (20,344) (21,180)
Accumulated other comprehensive income 110 230
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Total Shareowners' Equity 7,479 7,019
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TOTAL LIABILITIES & SHAREOWNERS' EQUITY $ 29,081 $ 32,804
==============================
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AT&T Corp. Consolidated Statements of Cash Flows (Unaudited)
Dollars in millions
For the Six Months Ended
June 30,
2005 2004
Operating Activities
Net income $ 836 $ 412
Adjustments to reconcile net income to net cash provided by
operating activities:
Net losses (gains) on sales of businesses and investments 5 (14)
Loss on early extinguishment of debt 206 274
Asset impairment and net restructuring and other charges 36 226
Depreciation and amortization 1,266 2,481
Provision for uncollectible receivables 65 265
Deferred income taxes 352 (181)
Decrease in receivables 152 98
Decrease in accounts payable and accrued expenses (407) (189)
Net change in other operating assets and liabilities (1,097) (770)
Other adjustments, net (61) (139)
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Net Cash Provided by Operating Activities 1,353 2,463
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Investing Activities
Capital expenditures and other additions (698) (1,018)
Proceeds from sale or disposal of property, plant and equipment 134 25
Investment distributions and sales 12 36
Net dispositions of businesses 72 8
Decrease (increase) in restricted cash 546 (1)
Other investing activities, net 13 6
-------------------------
Net Cash Provided by (Used in) Investing Activities 79 (944)
-------------------------
Financing Activities
Retirement of long-term debt, including redemption premiums (2,721) (3,210)
Decrease in short-term borrowings, net (310) (195)
Issuance of AT&T common shares 44 33
Dividends paid on common stock (380) (377)
Other financing activities, net 150 336
-------------------------
Net Cash Used in Financing Activities (3,217) (3,413)
-------------------------
Net decrease in cash and cash equivalents (1,785) (1,894)
Cash and cash equivalents at beginning of year 3,698 4,353
-------------------------
Cash and Cash Equivalents at End of Period $ 1,913 $ 2,459
=========================
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Reconciliation of Non-GAAP Measures
AT&T is providing information on net debt and EBITDA and related margins because
these measures are commonly used by the investment community for evaluation
purposes. Net debt and EBITDA should be considered in addition to, but not in
lieu of, other measures of liquidity, profitability and cash flows reported in
accordance with generally accepted accounting principles. Additionally, they may
not be comparable to similarly captioned measures reported by other companies.
Net Debt
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Net debt is defined as total debt, less cash and net foreign debt fluctuations:
(dollars in millions) June 30, 2005
Total debt $7.7
Less: Cash 1.9
Foreign debt fluctuations 0.2
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Net debt $5.6
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AT&T Business EBITDA, Excluding Asset Impairment and Net Restructuring and Other
Charges, to Operating Income
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(dollars in millions) For the three months ended
June 30, 2005 June 30, 2004
EBITDA and margin (1) $1,106 21.5% $1,380 24.6%
Depreciation and amortization (596) (1,176)
Asset impairment and net restructuring
and other charges 18 (52)
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Operating income and margin $528 10.2% $152 2.7%
=============== ===============
(1) Excluding asset impairment and net restructuring and other charges.
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AT&T Corp. Reconciliation of Non-GAAP Measures, continued
EBITDA, Excluding Asset Impairment and Net Restructuring and Other
Charges, to Net Income
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(dollars in millions) For the three months ended
June 30, June 30,
2005 2004
EBITDA margin (1) 22.0% 21.4%
EBITDA (1) $ 1,485 $ 1,633
Depreciation and amortization (630) (1,231)
Asset impairment and net restructuring and
other charges (36) (54)
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Subtotal operating income $ 819 $ 348
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Other (expense) income, net (153) 36
Interest (expense) (169) (191)
(Provision) for income taxes (198) (87)
Minority interest income 0 1
Net income related to equity investments 8 1
-------- --------
Net income $ 307 $ 108
======== ========
(1) Excluding asset impairment and net restructuring and other charges.
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NOTE TO FINANCIAL MEDIA: AT&T executives will discuss the company's performance
in a two-way conference call for financial analysts at 5:00 p.m. ET today.
Reporters are invited to listen to the call. U.S. callers should dial
888-428-4478 to access the call. Callers outside the U.S. should dial +
1-612-332-0630.
In addition, Internet rebroadcasts of the call will be available on the AT&T Web
site beginning later today. The Web site address is www.att.com/ir. An audio
rebroadcast of the conference call will also be available beginning at 9:30 PM
on Wednesday, July 20 through 12:00 AM on Wednesday, July 27. To access the
audio rebroadcast, U.S. callers can dial 800-475-6701, access code 763284.
Callers outside the U.S. should dial +1-320-365-3844, access code 763284.
The foregoing contains "forward-looking statements" 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 risk factors
include the impact of increasing competition, continued capacity oversupply,
regulatory uncertainty and the effects of technological substitution, among
other risks. For a more detailed description of the factors that could cause
such a difference, please see AT&T's10-K, 10-Q, 8-K and other 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. This information is presented solely to
provide additional information to further understand the results of AT&T.
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