Financial Strength
The company said it has a strong cash position, including a strong balance sheet and attractive liquidity.
AT&T had about$12 billion in cash on hand onDec. 31, 2019 .- In February,
AT&T received~$4 billion from preferred stock issuances at rates which were measurably below that of its common dividend. During the first quarter, the company executed a$4 billion Accelerated Share Repurchase (ASR) agreement which was completed inMarch 2020 . - In March,
AT&T canceled a$4 billion ASR (planned for 2Q) and stopped all share repurchases. AT&T today announced a$5.5 billion term-loan agreement at competitive rates with 12 banks to provide additional financial flexibility to an already strong cash position. The loans are pre-payable without penalty.
Going forward,
- The strength and relevance of our core subscription businesses, our continued execution on our business transformation initiatives, and sizing our operations to economic activity will provide cash from operations that will support network investments, dividend payments and debt retirement, as well as the ability to invest in business opportunities that arise as the economies recover.
- About
$2 billion from the expected closing later in 2020 from the previously announced divestiture of CME, as well as additional proceeds from a number of other real estate and tower monetizations. - Company expects to close the sale of its
Puerto Rico andU.S. Virgin Islands operations later this year and intends to use the proceeds to retire an outstanding preferred interest. - Continued access to commercial paper, bond markets and other financing activities which, as in the past, will be utilized as part of normal financing activity based on cost, duration and overall market conditions.
- The company also has a fully committed
$15 billion revolver in place and has no need or plans to use it in 2020. - As it has for the past 36 years, the company looks forward to continuing to pay a quarterly dividend to shareholders. On
March 27 , the Board of Directors declared a dividend payable onMay 1, 2020 , to stockholders of record of its common and preferred shares at the close of business onApril 9, 2020 .
Supply Chain
Over the past several years, the company has worked with its suppliers to ensure a geographically diverse supply chain to reduce risk in these types of situations. While the COVID-19 pandemic is subject to rapid change, in general, the company believes its exposure to near-term equipment shortages is limited.
1Q20 Earnings
The company will provide more information on COVID-19 impacts to its financial and operational results on its first-quarter earnings call on
*About AT&T
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in
This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at https://investors.att.com.
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