What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to announce Verizon Communications' financial results for the fiscal year 2008 and the fourth quarter ended December 31, 2008. It also serves to provide context and supplementary financial information beyond the standard GAAP reporting.

Why does Verizon present non-GAAP financial measures?

Verizon presents non-GAAP financial measures, such as 'income before special items' and specific metrics for Verizon Wireless (like EBITDA and cash expense per customer), to offer investors a view of operational performance that management believes is more indicative of ongoing business trends. These measures exclude items deemed non-operational or non-recurring to facilitate better comparability across periods and with industry peers.

What are 'special items' that Verizon excludes?

'Special items' typically refer to revenues, expenses, gains, and losses that are considered non-operational and/or non-recurring. In this filing, a specific example cited is the exclusion of operating results from non-strategic local exchange and related business assets in Maine, New Hampshire, and Vermont that were spun off during the year.

How should investors interpret the non-GAAP information provided?

Investors should view the non-GAAP information as supplementary to the primary GAAP financial statements. While these measures aim to provide a clearer picture of operational performance and efficiency, they should be considered alongside the GAAP results. The filing states that a complete reconciliation to comparable GAAP amounts is provided, which is essential for investors to understand the adjustments made.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. (VZ) filed an 8-K report on January 27, 2009, primarily to announce its fiscal year 2008 results and the fourth quarter ended December 31, 2008. The filing includes both GAAP and non-GAAP financial measures, with the company emphasizing its "income before special items" to provide a clearer view of ongoing operational performance by excluding non-recurring or non-strategic items. This report is important for investors as it provides a detailed look at Verizon's financial performance for the past year and quarter, highlighting the company's methodology for presenting results. The emphasis on non-GAAP measures, particularly concerning Verizon Wireless's operating efficiency and profitability, is crucial for understanding management's perspective on the business's underlying trends and for comparing performance against peers. Investors should pay close attention to the reconciliation provided to GAAP figures to fully grasp the impact of these adjustments.

Key Highlights

1Verizon Communications released its fiscal year 2008 and Q4 2008 results on January 27, 2009, via an 8-K filing.
2The filing includes both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures.
3Management utilizes 'income before special items' to present results, excluding non-operational and non-recurring items for better period-to-period comparability.
4Special items removed include revenues, expenses, gains, and losses related to non-strategic local exchange assets spun off in Maine, New Hampshire, and Vermont.
5Verizon Wireless's performance is highlighted using non-GAAP measures like cash expense per customer and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin.
6These non-GAAP measures for Verizon Wireless aim to assess operating expense efficiency and profitability on a more variable cost basis.
7The report emphasizes that non-GAAP information is supplementary to, and not a replacement for, GAAP financial statements.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 27, 2009)

Summary

Key Highlights

Frequently Asked Questions