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.