AT&T Q4 consolidated revenues increased more than 22%
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Q4 2015 net income attributable to AT&T totaled $4 billion.
Compared with results for the fourth quarter of 2014, operating expenses were $34.6 billion versus $39.9 billion; operating income was $7.5 billion versus $(5.5) billion; and operating income margin was 17.9% versus (15.9)% in the year-ago quarter.
When adjusting for amortization, merger- and integration-related costs and other expenses, operating income was $7.1 billion versus $5.0 billion; and operating income margin was 16.8%, up 230 basis points from a year ago.
Q4 2015 net income attributable to AT&T totaled $4 billion, or $0.65 per share, compared to a net loss of $4 billion, or $(0.77) per share, in the year-ago quarter.
Adjusting for the $0.22 non-cash actuarial gain on benefit plans from the annual remeasurement process and $0.20 of costs primarily for merger- and integration-related items, earnings per share was $0.63 compared to an adjusted $0.56 in the year-ago quarter, an increase of 12.5%.
Reported cash from operating activities was $9.2 billion in the fourth quarter, and capital expenditures totaled $6.1 billion, or $6.8 billion when including purchases in Mexico with favorable payment terms. Free cash flow — cash from operating activities minus capital expenditures — was $3.1 billion.
For full-year 2015, compared with 2014 results, AT&T's consolidated revenues totaled $146.8 billion versus $132.4 billion, up 10.8% for the year.
Operating expenses reflect actuarial gains and losses on benefit plans and were $122 billion compared with $120.2 billion, up 1.5%; net income attributable to AT&T was $13.3 billion versus $6.4 billion; and earnings per diluted share was $2.37, compared with $1.24.
With adjustments for both years, operating income was $27.7 billion versus $23.1 billion; operating income margin was 18.8% versus 17.5%; and earnings per share totaled $2.71, compared with $2.56, an increase of 5.9%.
AT&T's full-year reported cash from operating activities was $35.9 billion, up from $31.3 billion in 2014.
Capital expenditures, including capitalized interest, totaled $20 billion, or $20.7 billion when including purchases in Mexico with favorable payment terms, versus $21.4 billion in 2014.
Full-year free cash flow was $15.9 billion compared to $9.9 billion in 2014, a 60% increase. The free cash flow dividend payout ratio for the full year was 64%.
In 2016, AT&T expects: double-digit consolidated revenue growth, adjusted EPS growth in the mid-single digit range or better, stable consolidated margins with ramp in Mexico investment, capital spending in the $22 billion range, fee cash flow growth with a dividend payout ratio in the 70s%. ■