EX-99.1 5 y533468kex99-1.txt RESTATED QUARTERLY INCOME STATEMENTS 1 Exhibit 99.1 AT&T CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Dollars in millions (except per share amounts)
For the three months ended 3/31/00 6/30/00 9/30/00 12/31/00 3/31/01 -------- ------- -------- -------- -------- Revenue $13,703 $13,744 $14,176 $13,910 $13,551 Operating Expenses Access and other connection 3,506 3,527 3,147 2,960 3,151 Costs of services and products 2,958 3,009 3,282 3,546 3,572 Selling, general and administrative 2,548 2,357 2,461 2,386 2,794 Depreciation and other amortization 1,270 1,366 1,568 1,720 1,702 Amortization of goodwill, franchise costs and other purchased intangibles 301 345 787 1,232 710 Net restructuring and other charges 773 -- 24 6,232 808 Total operating expenses 11,356 10,604 11,269 18,076 12,737 Operating income (loss) 2,347 3,140 2,907 (4,166) 814 Other income (expense) 647 346 365 (208) (783) Interest expense 536 568 896 964 879 Income (loss) from continuing operations before income taxes, minority interest and earnings (losses) from equity investments and cumulative effect of accounting change 2,458 2,918 2,376 (5,338) (848) Provision for income taxes 499 1,094 939 752 218 Minority interest income (expense) (46) (46) 103 4,092 640 Equity earnings (losses) from Liberty Media Group 942 267 1,756 (1,477) (697) Net (losses) gains from other equity (205) (188) (222) 27 (57) investments Income (loss) from continuing operations 2,650 1,857 3,074 (3,448) (1,180) Income (loss) from discontinued operations (net of income taxes) 33 177 (2) 328 (68) Cumulative effect of accounting change (net of tax) -- -- -- -- 904 Net income (loss) $ 2,683 $ 2,034 $ 3,072 $(3,120) $ (344) Dividend requirements of preferred stock -- -- -- -- 181 Net income (loss) available to common shareowners $ 2,683 $ 2,034 $ 3,072 $(3,120) $ (525) AT&T Common Stock Group--per basic share: Income (loss) from continuing operations $ 0.54 $ 0.49 $ 0.35 $ (0.52) $ (0.17) Income (loss) from discontinued operations 0.01 0.05 -- 0.07 (0.02) Cumulative effect of accounting change -- -- -- -- 0.09 AT&T Common Stock Group earnings (loss) $ 0.55 $ 0.54 $ 0.35 $ (0.45) $ (0.10) AT&T Common Stock Group--per diluted share: Income (loss) from continuing operations $ 0.53 $ 0.48 $ 0.35 $ (0.52) $ (0.17) Income (loss) from discontinued operations 0.01 0.05 -- 0.07 (0.02) Cumulative effect of accounting change -- -- -- -- 0.09 AT&T Common Stock Group earnings (loss) $ 0.54 $ 0.53 $ 0.35 $ (0.45) $ (0.10) AT&T Wireless Group--per basic and diluted share: Earnings (loss) from discontinued operations $ -- $ 0.06 $ (0.01) $ 0.16 $ (0.02) Liberty Media Group -- per basic and diluted share: Income (loss) - before cumulative effect of accounting change $ 0.37 $0.10 $ 0.68 $ (0.57) $ (0.27) Cumulative effect of accounting change -- -- -- -- 0.21 Liberty Media Group (loss) earnings $ 0.37 $ 0.10 $ 0.68 $ (0.57) $ (0.06)
2 b. The reflection of AT&T Wireless as a discontinued operation in AT&T's financial statements did not impact the Consumer, Business or Broadband segments. The Corporate and Other Group, which reflects the consolidated results of Excite@Home, pure corporate staff functions and the elimination of transactions between segments was impacted. The following summarizes the restated Corporate and Other results:
1Q00 2Q00 3Q00 4Q00 -------- -------- -------- -------- EBIT (470) 67 106 (2,982) EBITDA (326) 213 338 (2,607)
c. Earnings per share on a diluted basis from continuing operations, excluding other income (expense), equity earnings (losses), asset impairment charges, and the effects of the Wireless exchange offer restated to reflect AT&T Wireless as a discontinued operation were $0.34, $0.47. $0.35, $0.23, $0.05 for the quarters ended March 31, 2000, June 30, 2000, September 30, 2000, December 31, 2000 and March 31, 2001, respectively.