8-KEarnings & ResultsExhibits & Filings

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Oct 26, 2009)

Filed October 26, 2009For Securities:VZ

Summary

Verizon Communications Inc. filed an 8-K on October 26, 2009, to report its financial results for the quarter ended September 30, 2009. The filing primarily directs investors to an accompanying press release and financial tables (Exhibit 99) for detailed results. Notably, Verizon emphasizes the use of non-GAAP financial measures, including "income before special items," "EBITDA" for Verizon Wireless, and "Free Cash Flow." Management asserts these non-GAAP metrics provide a clearer view of operational trends and are used internally for strategic planning and compensation, offering a more comparable basis for period-to-period analysis by excluding non-recurring or non-operational items. The filing also includes unaudited pro forma financial information that gives effect to the acquisition of Alltel Corporation as if it had occurred on January 1, 2008. This pro forma data, also presented before special items, aims to provide a comparable view of combined operating results. While it does not reflect potential cost savings or integration costs, it is intended to help investors understand potential future trends and performance more effectively than GAAP results alone, given the significant acquisition context.

Key Highlights

  • 1Verizon Communications Inc. released its third-quarter 2009 financial results on October 26, 2009, via an 8-K filing.
  • 2The company is providing detailed financial information through an accompanying press release and financial tables (Exhibit 99).
  • 3Verizon is leveraging several non-GAAP financial measures, including "income before special items," to present operational performance.
  • 4Specific non-GAAP measures for Verizon Wireless, such as "EBITDA" and "cash expense per customer," are highlighted for evaluating operational efficiency and profitability.
  • 5Free Cash Flow is presented as a key non-GAAP metric to assess the company's cash generation ability after capital expenditures.
  • 6Unaudited pro forma financial statements are included, reflecting the acquisition of Alltel Corporation as if it occurred on January 1, 2008.
  • 7Management believes these non-GAAP and pro forma presentations offer a more insightful view of underlying business trends and operational performance compared to standard GAAP reporting.

Frequently Asked Questions

This 8-K filing primarily serves to report Verizon Communications Inc.'s financial results for the quarter ended September 30, 2009. It also announces the availability of a detailed press release and financial tables (Exhibit 99) containing this information and provides context for the non-GAAP financial measures being used.

Verizon emphasizes non-GAAP measures like "income before special items," "EBITDA," and "Free Cash Flow" because management believes they offer a clearer picture of the company's ongoing operational performance and trends. These measures exclude items considered non-operational or non-recurring, which management uses internally for strategic planning and believes provides a more comparable basis for analysis.

The unaudited pro forma financial information presents the combined results of Verizon and Alltel as if the acquisition had occurred at the beginning of 2008. This is intended to give investors a more comparable view of the combined entity's performance and potential trends, especially in light of the significant acquisition, and to provide a basis for evaluating future performance before considering integration costs and potential synergies.

The detailed financial results, including the specific numbers for the quarter ended September 30, 2009, and reconciliations of non-GAAP measures to GAAP, are provided in the press release and financial tables filed as Exhibit 99 to this 8-K report.