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

The main purpose of this 8-K filing is to report Verizon Communications Inc.'s financial results for the quarter ended March 31, 2009. It aims to provide investors with a comprehensive view of the company's performance by including both standard GAAP financial information and additional non-GAAP measures that management believes offer better insights into operational trends and efficiency.

What are 'special items' and why does Verizon exclude them?

Special items are defined as revenues, expenses, gains, or losses that are non-operational and/or non-recurring in nature. Verizon excludes these from its 'income before special items' calculation to present a clearer picture of the company's ongoing operational performance and trends, making it easier for investors to understand the underlying business performance from period to period.

What is the significance of the pro forma financial information related to the Alltel acquisition?

The pro forma financial information presents the combined results of Verizon and Alltel as if the acquisition had occurred on January 1, 2008. This allows investors to compare performance on a more consistent basis, reflecting the combined entity's operational scale and trends before considering any potential future integration costs or synergies, providing a clearer view of the combined business's financial standing.

What are the key non-GAAP metrics highlighted for Verizon Wireless, and why are they important?

Key non-GAAP metrics for Verizon Wireless include cash expense per customer, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and EBITDA margin. These are important because they help investors assess the operational efficiency and profitability of the wireless segment by focusing on variable costs and excluding the impact of depreciation and amortization, which can be influenced by past capital expenditures and acquisitions.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. (VZ) filed an 8-K report on April 27, 2009, announcing its first-quarter 2009 financial results. The report primarily focuses on providing investors with a deeper understanding of the company's performance by presenting both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures. Verizon emphasizes its use of "income before special items" to highlight operational trends, excluding non-recurring or non-operational items, and also details the spin-off of non-strategic local exchange assets in Maine, New Hampshire, and Vermont. A significant portion of the filing discusses the "pro forma" financial information that reflects the acquisition of Alltel Corporation as if it had occurred on January 1, 2008. This allows for a more comparable view of results between periods, demonstrating the combined entity's performance before accounting for potential integration costs and cost savings. Management believes these non-GAAP presentations are crucial for assessing operational efficiency, evaluating trends, and making comparisons with competitors.

Key Highlights

1Verizon reported its Q1 2009 financial results, emphasizing both GAAP and non-GAAP measures for investor clarity.
2The company provided "income before special items" to offer a clearer view of ongoing operational performance, excluding one-time or non-operational charges.
3Verizon detailed the spin-off of its non-strategic local exchange and related business assets in Maine, New Hampshire, and Vermont during the reporting period.
4Significant focus was placed on pro forma financial information that retroactively includes the Alltel acquisition, allowing for a more comparable period-over-period analysis.
5Non-GAAP measures like Verizon Wireless's cash expense per customer, EBITDA, and EBITDA margin were presented to assess operational efficiency and profitability.
6Free Cash Flow was also highlighted as a key non-GAAP metric, indicating cash generated from operations after capital expenditures.
7The report emphasizes that non-GAAP figures are supplementary to GAAP results and are intended to enhance understanding, not replace GAAP reporting.

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

Summary

Key Highlights

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