8-KEarnings & Results

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Oct 27, 2008)

Filed October 27, 2008For Securities:VZ

Summary

This 8-K filing from Verizon Communications Inc. (VZ) on October 27, 2008, primarily serves to report their financial results and condition for the period ending October 27, 2008. The company has attached a press release and financial tables detailing these results. A key aspect of this report is Verizon's use of non-GAAP financial measures alongside traditional GAAP figures. These non-GAAP measures, such as "consolidated statements of income before special items," are presented to offer investors a clearer view of ongoing operational performance by excluding non-operational and/or non-recurring items. This approach aims to provide a more comparable basis for evaluating trends and future operating results. Additionally, specific non-GAAP metrics for Verizon Wireless, including cash expense per customer and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), are provided to highlight operational efficiency and profitability, particularly on a variable cost basis, and to facilitate comparisons with industry peers.

Key Highlights

  • 1Verizon Communications Inc. (VZ) filed an 8-K on October 27, 2008, reporting its financial results.
  • 2The filing includes a press release and financial tables detailing the company's performance.
  • 3Verizon is utilizing non-GAAP financial measures to supplement GAAP reporting.
  • 4Key non-GAAP measures include "consolidated statements of income before special items" to show operational trends.
  • 5These non-GAAP measures aim to provide a more comparable view of results by excluding non-operational and non-recurring items.
  • 6Verizon Wireless is providing specific non-GAAP metrics like "cash expense per customer" and "EBITDA."
  • 7These Verizon Wireless non-GAAP metrics are intended to assess operating efficiency and profitability on a variable cost basis and for peer comparison.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Verizon Communications Inc.'s financial results and condition for the period ending October 27, 2008, by attaching a press release and financial tables.

Verizon uses non-GAAP financial measures to provide investors with a clearer perspective on the company's ongoing operational performance and trends. These measures are intended to exclude non-operational and non-recurring items, offering a more comparable view of results than GAAP alone.

For Verizon Wireless, the filing highlights non-GAAP measures such as "cash expense per customer" and "EBITDA" (Earnings Before Interest, Taxes, Depreciation, and Amortization), along with "EBITDA margin." These are used to evaluate operating efficiency and profitability on a variable cost basis and to compare performance with other wireless carriers.

Verizon explains that these statements remove items of revenue, expense, gain, or loss that are non-operational and/or non-recurring. They also exclude results from divested local exchange assets. Management believes this presentation helps readers better understand operational trends and future operating results by providing a more comparable basis than GAAP results.