What were the key financial achievements of Verizon in 2002?

Verizon significantly reduced its total debt by $10.2 billion, ending the year at $54.1 billion. They also met or exceeded their targets for revenue growth, diluted EPS, and capital expenditures. Furthermore, the company generated $4.8 billion in free cash flow for the year.

How did Verizon's customer base perform in 2002?

Verizon experienced strong customer growth across its services. Verizon Wireless added 964,000 net customers in the fourth quarter, reaching 32.5 million total. The long-distance service added 566,000 net customers in the fourth quarter, totaling 10.4 million, and the DSL service added 148,000 net lines in the fourth quarter, reaching 1.8 million total.

What is Verizon's financial outlook for 2003?

For 2003, Verizon anticipates earnings per share (EPS) in the range of $2.70 to $2.80. They project comparable revenue growth of 0% to 2%. Capital expenditures are expected to be between $12.5 billion and $13.5 billion, and the company targets a further reduction in net debt to between $49 billion and $51 billion.

Were there any significant one-time items or special charges impacting the 2002 results?

Yes, the reported net income for 2002 included significant special items. The fourth quarter 2002 reported EPS of 83 cents included special items, with nearly $1.2 billion in gains largely offset by $1.1 billion in after-tax charges, including costs related to pension/benefit adjustments, the bankruptcy of Genuity Inc., and merger transition costs. The full-year reported earnings of $1.49 per share also included substantial net charges from various investment-related items, severance, pension and benefit costs, and accounting changes.

VZ 8-K SEC Disclosure — Jan 29, 2003

Summary

Verizon Communications Inc. reported its fourth-quarter and full-year 2002 financial results, highlighting strong operational growth and providing its outlook for 2003. The company successfully met or exceeded its year-end targets across key metrics including revenue growth, diluted EPS, capital expenditures, and debt management. A significant achievement was the reduction of total debt by $10.2 billion in 2002, bringing it down to $54.1 billion. The company also saw robust customer additions across its key segments. Verizon Wireless added 964,000 net customers in the fourth quarter, bringing its total to 32.5 million. The long-distance business experienced substantial growth, adding 566,000 net customers for a total of 10.4 million, positioning Verizon as the third-largest consumer long-distance provider in the U.S. Furthermore, 148,000 new net DSL lines were added, reaching a total of 1.8 million.

Key Highlights

1Verizon achieved strong yearly operational growth and met or exceeded year-end financial and operational targets for 2002.
2Total debt was reduced by $10.2 billion in 2002, decreasing to $54.1 billion.
3Verizon Wireless added 964,000 net customers in Q4 2002, reaching 32.5 million total customers.
4Verizon's long-distance service added 566,000 net customers in Q4 2002, totaling 10.4 million and making it the third-largest U.S. consumer long-distance carrier.
5Digital Subscriber Line (DSL) net additions were 148,000 in Q4 2002, bringing the total to 1.8 million lines.
6The company generated $4.8 billion in free cash flow for 2002.
7Verizon provided its 2003 guidance, expecting EPS between $2.70 and $2.80 and comparable revenue growth of 0% to 2%.

VERIZON COMMUNICATIONS INC 8-K Report (Jan 29, 2003)

Summary

Key Highlights

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