AT&T Reports Earnings

AT&T earns $0.06 per diluted share, excluding other expense/income; loses $0.28 per share, including accounting change

April 24, 2002

2 Min Read

NEW YORK -- AT&T (NYSE: T) today announced first-quarter earnings of $0.06 per diluted share from continuing operations, excluding other expense/income, compared with a loss of $0.02 on the same basis for the same quarter last year. On a reported basis, AT&T lost $0.05 per diluted share from continuing operations and a total loss of $0.28 per diluted share, or $975 million, including the cumulative effect of a required accounting change. The accounting change resulted in a non-cash charge of $856 million after tax, or $0.24 per diluted share, due to the cumulative effect of adopting Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets." Additionally, AT&T's first quarter reported earnings included $580 million of pretax impairment charges associated with certain investments and contractual obligations. In the year-ago quarter, the company reported a loss of $0.17 per diluted share from continuing operations. The new accounting standard eliminates amortization of goodwill and franchise costs. Amortization of these items in the first quarter of 2001 had a $0.12 per diluted share impact to continuing operations. AT&T's first-quarter EBITDA from continuing operations, excluding other expense/income, totaled $3.28 billion, a decline of 11.7 percent from the year-ago quarter Revenue for the quarter was $12.02 billion, a decline of 8.4 percent on a pro forma basis compared to the year-ago quarter, primarily due to continued declines in long distance voice services. Declining revenue was offset by growth at AT&T Broadband, primarily in high-speed data, telephony and digital video, as well as growth at AT&T Business in data/Internet Protocol (IP)/managed services and local services. Pro forma revenue is adjusted for the deconsolidation of Excite@Home and significant closed cable dispositions and acquisitions. On a reported basis, revenue declined 11.3 percent from the year-ago quarter. AT&T Corp.

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