8-KEarnings & ResultsExhibits & Filings

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 22, 2015)

Filed January 22, 2015For Securities:VZ

Summary

Verizon Communications Inc. (VZ) filed an 8-K on January 22, 2015, to report its financial results. The filing's primary purpose was to provide investors with their fourth-quarter and full-year 2014 results, alongside preliminary financial information for the upcoming year. The report emphasizes the use of non-GAAP financial measures, which management believes offer a clearer view of operational performance and trends by excluding certain items like the impact of divested businesses and non-operational items. Key to investors, the report indicates that Verizon is providing detailed explanations for its non-GAAP metrics such as Consolidated Adjusted Operating Revenues, EBITDA, Adjusted EBITDA, Net Debt, Net Debt to Adjusted EBITDA Ratio, and Adjusted Earnings Per Common Share (Adjusted EPS). The company also defines Free Cash Flow and explains how certain pension-related expenses are handled in its non-GAAP reporting for better sequential and year-over-year comparisons. This focus on non-GAAP measures is intended to provide a more granular understanding of the company's underlying business operations and financial health beyond standard GAAP reporting.

Key Highlights

  • 1Verizon Communications Inc. filed an 8-K on January 22, 2015, to report financial results.
  • 2The filing primarily concerns the release of Q4 and full-year 2014 financial results.
  • 3Extensive use of non-GAAP financial measures is detailed, including Adjusted Operating Revenues, EBITDA, and Adjusted EPS.
  • 4Management believes these non-GAAP measures provide enhanced understanding of operational performance and trends.
  • 5Specific definitions and calculations for various non-GAAP metrics are provided, including Consolidated Adjusted EBITDA and Net Debt to Adjusted EBITDA Ratio.
  • 6The report clarifies the exclusion of a non-strategic Wireline business divested in Q3 2014 from certain revenue calculations.
  • 7Free Cash Flow is presented as a key non-GAAP metric for evaluating cash available for debt and dividends.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly announce and provide Verizon Communications Inc.'s financial results for the fourth quarter and full year of 2014, along with explanations of the non-GAAP financial measures used to present this information.

Verizon uses non-GAAP financial measures because management believes they provide users of financial information with additional insights into the company's operating results and trends that may not be as readily apparent from GAAP measures alone. These measures often exclude items that management believes are not indicative of ongoing operational performance, such as the impact of divested businesses or specific non-operational items.

Key non-GAAP measures highlighted include Consolidated Adjusted Operating Revenues, Consolidated EBITDA, Wireless Segment EBITDA (and its margins), Wireline Segment EBITDA (and its margins), Consolidated Adjusted EBITDA, Net Debt, Net Debt to Adjusted EBITDA Ratio, Adjusted Earnings Per Common Share (Adjusted EPS), and Free Cash Flow.

The divestiture of a non-strategic Wireline business in the third quarter of 2014 means that its historical operating revenues are excluded from certain Verizon metrics, such as 'Consolidated adjusted operating revenues,' to provide a clearer view of the ongoing business operations. This exclusion helps in evaluating current operating trends without the influence of discontinued operations.