8-KEarnings & ResultsExhibits & Filings

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 25, 2011)

Filed January 25, 2011For Securities:VZ

Summary

This Form 8-K filing from Verizon Communications Inc. (VZ), dated January 25, 2011, primarily serves to attach a press release and financial tables detailing the company's financial results. The report highlights the use of non-GAAP financial measures to provide a clearer understanding of operational performance and trends, particularly for the Wireless and Wireline segments. Investors should note that Verizon is providing adjusted operating revenues, EBITDA metrics for both Wireless and Wireline segments, monthly cash expense per customer for Wireless, cash operating expense for Wireline, and free cash flow. These non-GAAP measures are intended to offer a more granular view of profitability and efficiency, excluding items such as depreciation, amortization, and certain divested property revenues, thereby allowing for a better comparison with industry peers and an assessment of cash generation available for debt and dividends.

Key Highlights

  • 1Verizon Communications Inc. filed an 8-K on January 25, 2011, to release financial results.
  • 2The filing includes a press release and financial tables dated January 25, 2011.
  • 3Verizon is presenting both GAAP and non-GAAP financial measures.
  • 4Key non-GAAP measures include Adjusted Operating Revenues, Wireless EBITDA, Wireless EBITDA Service Margin, Wireline EBITDA, and Wireline EBITDA Margin.
  • 5Additional non-GAAP metrics disclosed are Verizon Wireless monthly cash expense per customer, Verizon Wireline cash operating expense, and Free Cash Flow.
  • 6The company explains the rationale behind these non-GAAP measures, emphasizing their utility in evaluating operating trends, profitability, and efficiency relative to competitors.
  • 7These non-GAAP measures exclude certain items like depreciation and amortization, and revenues from divested properties for comparative purposes.

Frequently Asked Questions

The main purpose of this Form 8-K filing is to publicly disclose Verizon Communications Inc.'s financial results through an attached press release and financial tables dated January 25, 2011. It also details the specific non-GAAP financial measures the company is using to report its performance.

Verizon is using non-GAAP financial measures because management believes they provide investors with additional insights into the company's operating results and trends. These measures are intended to enhance the understanding of financial performance by excluding certain items, such as depreciation, amortization, and revenues from divested properties, allowing for a clearer view of operational profitability and efficiency, and facilitating comparisons with competitors.

Key non-GAAP metrics include Consolidated Adjusted Operating Revenues, Verizon Wireless Segment EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and its service margin, Verizon Wireline Segment EBITDA and its margin, Verizon Wireless monthly cash expense per customer, Verizon Wireline cash operating expense, and Free Cash Flow.

In this filing, Verizon defines Free Cash Flow as cash flow from operations less capital expenditures. Management believes this metric is useful for investors in evaluating the cash available to the company for debt repayment and dividend distributions.