8-KOther Events

VERIZON COMMUNICATIONS INC 8-K Report (Mar 28, 2001)

Filed March 28, 2001For Securities:VZ

Summary

Verizon Communications Inc. (VZ) provided an update on its financial and operational targets at the Morgan Stanley Dean Witter Global Communications Conference. The company reiterated its guidance for first quarter adjusted earnings per share (EPS) in the 70-72 cent range and revenue growth of 6.8-7.2 percent, inclusive of the Verizon Wireless joint venture. For the full year 2001, Verizon reaffirmed its target for adjusted EPS growth of over 8 percent, translating to $3.13-$3.17, and revenue growth of 8-10 percent. The company also highlighted significant subscriber growth expectations for both DSL and long distance services. Looking further ahead, Verizon maintained its adjusted EPS growth target of over 12 percent for 2002, along with continued revenue growth in the 8-10 percent range. A key focus for the company is achieving substantial merger-related expense savings, with plans to increase these savings to approximately $800 million in 2001, up from $535 million in 2000, and a long-term goal of $2 billion by the end of 2003. Investors should note the forward-looking nature of these statements and the various risk factors that could impact actual results, including economic conditions, regulatory outcomes, and competitive pressures.

Key Highlights

  • 1Reaffirmed Q1 2001 adjusted EPS guidance of 70-72 cents and revenue growth of 6.8-7.2%.
  • 2Maintained full-year 2001 adjusted EPS growth target of 8%+ ($3.13-$3.17) and revenue growth of 8-10%.
  • 3Projected DSL subscribers to exceed 700,000 by end of Q1, with a year-end target of 1.2-1.3 million.
  • 4Expected long distance customer base to reach 5.0-5.1 million by end of Q1, targeting 6.4-6.6 million by year-end.
  • 5Confirmed 2002 adjusted EPS growth target of 12%+ ($3.49-$3.54) and revenue growth of 8-10%.
  • 6Intends to increase merger-related annual expense savings to approximately $800 million in 2001, up from $535 million in 2000, aiming for $2 billion by end of 2003.

Frequently Asked Questions

Verizon is targeting first quarter adjusted earnings per share (EPS) in the 70-72 cent range and revenue growth of 6.8-7.2 percent. For the full year 2001, the company is reiterating its target for adjusted EPS growth of over 8 percent, translating to $3.13-$3.17, and revenue growth in the 8-10 percent range.

Verizon expects its DSL subscribers to surpass 700,000 by the end of the first quarter and aims for 1.2-1.3 million by the end of 2001. For its long distance service, the company anticipates a customer base of 5.0-5.1 million at the end of Q1, with a target of 6.4-6.6 million by year-end.

Verizon intends to increase its merger-related annual expense savings to approximately $800 million in 2001, a significant increase from $535 million in 2000. The company has a long-term goal of achieving $2 billion in annual expense savings by the end of 2003.

Key risks highlighted include materially adverse changes in economic conditions, material changes in available technology, the outcome of regulatory initiatives and proceedings (concerning interconnection, access charges, universal service, etc.), the success and effects of competition in local and long distance markets, the timing and profitability of market entries, the ability to integrate former Bell Atlantic and GTE operations, and the profitability of the broadband access market and Genuity Inc.