AT&T Inc. T filed Quarterly Report for the period ended 2009-05-06.
AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates AT&T operating companies are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services the nation's fastest 3G network and the best wireless coverage worldwide and the nation's leading high speed Internet access and voice services. In domestic markets AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of their three-screen integration strategy AT&T operating companies are expanding their TV entertainment offerings. AT&T Inc. has a market cap of $157.29 billion; its shares were traded at around $26.69 with a P/E ratio of 10.3 and P/S ratio of 1.3. The dividend yield of AT&T Inc. stocks is 6.1%. AT&T Inc. had an annual average earning growth of 12.7% over the past 5 years.
At March 31, 2009, our debt ratio was 43.2% compared to 39.5% at March 31, 2008 and 43.7% at December 31, 2008. The increased debt ratio from a year ago is due primarily to a decrease in stockholders' equity driven by a decrease in retirement plan funded status, and to a lesser extent, by an $859 increase in debt. The debt ratio is slightly down from December 31, 2008 due to a moderate decrease in debt, which fell $641, and a slight increase in stockholders' equity, which rose $945. The increased debt ratio also reflects the impact of our share repurchases in 2008. Equity in 2009 reflects our increased income and adjustments to other comprehensive income required under Statement of Financial Standards No. 158 “Employers Accounting for Defined Benefit Pension and Other Postretirement Plans.”
We have a five-year $10,000 credit agreement with a syndicate of investment and commercial banks, which we have the right to increase up to an additional $2,000 provided no event of default under the credit agreement has occurred. One of the participating banks is Lehman Brothers Bank, Inc., which recently declared bankruptcy. We expect that they will be unable to fund their current commitment of $535. The current agreement will expire in July 2011. We also have the right to terminate, in whole or in part, amounts committed by the lenders under this agreement in excess of any outstanding advances; however, any such terminated commitments may not be reinstated. Advances under this agreement may be used for general corporate purposes, including support of commercial paper borrowings and other short-term borrowings. We must maintain a debt-to-EBITDA (earnings before interest, income taxes, depreciation and amortization, and other modifications described in the agreement) financial ratio covenant of not more than three-to-one as of the last day of each fiscal quarter for the four quarters then ended. We comply with all covenants under the agreement. At March 31, 2009, we had no borrowings outstanding under this agreement.
In April 2009, we issued ÂŁ750 ($1,107 equivalent) of 5.875% global notes due 2017 and ÂŁ1,100 ($1,621 equivalent) of 7.0% global notes due 2040 for proceeds of approximately $2,711. Also in April 2009, we entered into fixed-to-fixed cross-currency swaps on those debt offerings to hedge our exposure to changes in foreign currency exchange rates. This hedge also includes interest rate swaps of a fixed foreign-denominated rate to a fixed U.S.-denominated interest rate.
At March 31, 2009, we had interest rate swaps with a notional value of $5,750 and a fair value of $505.
We have fixed-to-fixed cross-currency swaps on foreign-currency-denominated debt instruments with a U.S. dollar notional value of $4,774 to hedge our exposure to changes in foreign currency exchange rates. These derivatives have been designated at inception and qualify as cash flow hedges with a net fair value of $(913) at March 31, 2009.
Read the The complete ReportT is in the portfolios of Mark Hillman of Hillman Capital Management, Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund, Charles Brandes of Brandes Investment, NWQ Managers of NWQ Investment Management Co, John Paulson of Paulson & Co., Kenneth Fisher of Fisher Asset Management, LLC, Irving Kahn of Kahn Brothers & Company Inc., Irving Kahn of Kahn Brothers & Company Inc., Tweedy Browne of Tweedy Browne CO LLC, Kenneth Fisher of Fisher Asset Management, LLC, Richard Aster Jr of Meridian Fund, George Soros of Soros Fund Management LLC, Richard Aster Jr of Meridian Fund, David Dreman of Dreman Value Management, Dodge & Cox, Richard Pzena of Pzena Investment Management LLC, David Dreman of Dreman Value Management, PRIMECAP Management.
AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates AT&T operating companies are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services the nation's fastest 3G network and the best wireless coverage worldwide and the nation's leading high speed Internet access and voice services. In domestic markets AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of their three-screen integration strategy AT&T operating companies are expanding their TV entertainment offerings. AT&T Inc. has a market cap of $157.29 billion; its shares were traded at around $26.69 with a P/E ratio of 10.3 and P/S ratio of 1.3. The dividend yield of AT&T Inc. stocks is 6.1%. AT&T Inc. had an annual average earning growth of 12.7% over the past 5 years.
Highlight of Business Operations:
We paid dividends of $2,416 in the first quarter of 2009 and $2,422 in the first quarter of 2008, primarily reflecting an increase in the quarterly dividend approved by our Board of Directors in December 2008, which was more than offset by a decline in common shares outstanding due to our share repurchases in the first half of 2008. Dividends declared by our Board of Directors totaled $0.41 per share in the first quarter of 2009 and $0.40 per share in the first quarter of 2008. Our dividend policy considers the expectations and requirements of stockholders, internal requirements of AT&T and long-term growth opportunities. It is our intent to provide the financial flexibility to allow our Board of Directors to consider dividend growth and to recommend an increase in dividends to be paid in future periods. All dividends remain subject to declaration by our Board of Directors.At March 31, 2009, our debt ratio was 43.2% compared to 39.5% at March 31, 2008 and 43.7% at December 31, 2008. The increased debt ratio from a year ago is due primarily to a decrease in stockholders' equity driven by a decrease in retirement plan funded status, and to a lesser extent, by an $859 increase in debt. The debt ratio is slightly down from December 31, 2008 due to a moderate decrease in debt, which fell $641, and a slight increase in stockholders' equity, which rose $945. The increased debt ratio also reflects the impact of our share repurchases in 2008. Equity in 2009 reflects our increased income and adjustments to other comprehensive income required under Statement of Financial Standards No. 158 “Employers Accounting for Defined Benefit Pension and Other Postretirement Plans.”
We have a five-year $10,000 credit agreement with a syndicate of investment and commercial banks, which we have the right to increase up to an additional $2,000 provided no event of default under the credit agreement has occurred. One of the participating banks is Lehman Brothers Bank, Inc., which recently declared bankruptcy. We expect that they will be unable to fund their current commitment of $535. The current agreement will expire in July 2011. We also have the right to terminate, in whole or in part, amounts committed by the lenders under this agreement in excess of any outstanding advances; however, any such terminated commitments may not be reinstated. Advances under this agreement may be used for general corporate purposes, including support of commercial paper borrowings and other short-term borrowings. We must maintain a debt-to-EBITDA (earnings before interest, income taxes, depreciation and amortization, and other modifications described in the agreement) financial ratio covenant of not more than three-to-one as of the last day of each fiscal quarter for the four quarters then ended. We comply with all covenants under the agreement. At March 31, 2009, we had no borrowings outstanding under this agreement.
In April 2009, we issued ÂŁ750 ($1,107 equivalent) of 5.875% global notes due 2017 and ÂŁ1,100 ($1,621 equivalent) of 7.0% global notes due 2040 for proceeds of approximately $2,711. Also in April 2009, we entered into fixed-to-fixed cross-currency swaps on those debt offerings to hedge our exposure to changes in foreign currency exchange rates. This hedge also includes interest rate swaps of a fixed foreign-denominated rate to a fixed U.S.-denominated interest rate.
At March 31, 2009, we had interest rate swaps with a notional value of $5,750 and a fair value of $505.
We have fixed-to-fixed cross-currency swaps on foreign-currency-denominated debt instruments with a U.S. dollar notional value of $4,774 to hedge our exposure to changes in foreign currency exchange rates. These derivatives have been designated at inception and qualify as cash flow hedges with a net fair value of $(913) at March 31, 2009.
Read the The complete ReportT is in the portfolios of Mark Hillman of Hillman Capital Management, Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund, Charles Brandes of Brandes Investment, NWQ Managers of NWQ Investment Management Co, John Paulson of Paulson & Co., Kenneth Fisher of Fisher Asset Management, LLC, Irving Kahn of Kahn Brothers & Company Inc., Irving Kahn of Kahn Brothers & Company Inc., Tweedy Browne of Tweedy Browne CO LLC, Kenneth Fisher of Fisher Asset Management, LLC, Richard Aster Jr of Meridian Fund, George Soros of Soros Fund Management LLC, Richard Aster Jr of Meridian Fund, David Dreman of Dreman Value Management, Dodge & Cox, Richard Pzena of Pzena Investment Management LLC, David Dreman of Dreman Value Management, PRIMECAP Management.
