SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: July 24, 2003
AT&T CORP.
(Exact Name of Registrant as Specified in Charter)
New York
(State or Other Jurisdiction of Incorporation)
1-1105 13-4924710
(Commission File Number) (IRS Employer Identification No.)
One AT&T Way
Bedminster, New Jersey 07921
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (908) 221-2000
Not Applicable
(Former Name or Former Address, If Changed Since Last Report)
A New York Commission File I.R.S. Employer
Corporation No. 1-1105 No. 13-4924710
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
What are we disclosing?
On July 24, 2003, David W. Dorman, our Chairman and Chief Executive Officer,
publicly disclosed in an interview on CNBC "Squawkbox" that our EBITDA (earnings
before interest, taxes, depreciation and amortization) margins (EBITDA as a
percent of revenue) were in the mid-twenties.
Reconciliation of EBITDA and associated margin to net income for the three, six
and twelve month periods ended June 30, 2003:
For the three For the six For the twelve
months ended months ended months ended
June 30, 2003 Margin June 30, 2003 Margin June 30, 2003 Margin
------------- ------------- --------------
EBITDA $2,226 25.3% $4,578 25.7% $9,242 25.3%
Depreciation and amortization (1,197) (2,383) (4,883)
AT&T Latin America impairment charge - - (1,029)
------------- ------------- --------------
Subtotal Operating Income 1,029 11.7% 2,195 12.3% 3,330 9.1%
Other income (expense), net 86 96 124
Interest (expense) (296) (628) (1,344)
(Provision) for taxes (308) (605) (1,200)
Minority interest income - 1 62
Net earnings (losses) related to
equity investments 25 6 7
------------- ------------- --------------
Net income from continuing operations 536 1,065 979
Net (loss) from discontinued operations - - (515)
Gain on disposition of discontinued
operations - - 1,324
Cumulative effect of accounting change - 42 42
------------- ------------- --------------
Net income $536 6.1% $1,107 6.2% $1,830 5.0%
------------- ------------- --------------
Our senior management believes that EBITDA margin is relevant in assessing our financial performance.
The information in this Form 8-K shall not be deemed "filed" for purposes of
Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, except as shall be
expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AT&T CORP.
/s/ Robert S. Feit
--------------------------
By: Robert S. Feit
Vice President - Law and Secretary
July 28, 2003