Summary
Verizon Communications Inc. (VZ) filed an 8-K on February 24, 2014, primarily to furnish a press release and related schedules. This filing is important for investors as it provides an in-depth look at the company's financial performance and operational metrics, including the use of non-GAAP measures. The company emphasizes the importance of these non-GAAP figures, such as Consolidated EBITDA and Adjusted Earnings Per Share (Adjusted EPS), for a clearer understanding of underlying business trends and operating profitability. Investors should pay close attention to the definitions and calculations of these non-GAAP measures as presented by Verizon, as they are intended to provide a more variable cost basis view and exclude non-operational or non-recurring items. The company asserts that these metrics aid in evaluating operational effectiveness and allow for more meaningful sequential and year-over-year comparisons. This 8-K serves as a crucial document for investors seeking to analyze Verizon's financial health beyond the standard GAAP reporting.
Key Highlights
- 1Filing primarily furnished a press release and related schedules dated February 24, 2014, as per Regulation FD.
- 2Verizon utilizes and defines several non-GAAP financial measures to enhance investor understanding of its financial performance.
- 3Key non-GAAP measures discussed include Consolidated EBITDA, Consolidated EBITDA margin, Consolidated Adjusted Operating Income, Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA margin, and Adjusted Earnings Per Common Share (Adjusted EPS).
- 4Management believes these non-GAAP measures provide a better view of operating profitability on a variable cost basis by excluding depreciation, amortization, and other non-operational items.
- 5The company explains how Consolidated EBITDA is calculated by adding back interest, taxes, depreciation, amortization, equity in earnings, and other income/expense to net income.
- 6Adjusted EPS is calculated by excluding non-operational or non-recurring items from reported EPS.
- 7Pension expenses are included in Adjusted Operating Income, Consolidated Adjusted EBITDA, and Adjusted EPS using prior year-end discount rates and expected returns to provide more consistent comparisons.