Why is Verizon providing non-GAAP financial measures in this filing?

Verizon uses non-GAAP financial measures to provide investors with additional information that management uses to assess performance. These measures are intended to enhance the understanding of the company's financial performance and trends by excluding certain items, such as the effects of divestitures, acquisitions, and non-operational items, which are believed to provide a more comparable view of the underlying business.

What are some of the key non-GAAP measures discussed in this report?

The report details several key non-GAAP measures including Consolidated Operating Revenues Excluding Divested Businesses and Acquisitions, EBITDA, EBITDA Margin, Consolidated Adjusted EBITDA, Net Debt, Net Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted Earnings per Common Share (Adjusted EPS). These measures are presented alongside their most directly comparable GAAP measures.

What is the significance of excluding divested businesses and acquisitions from revenue reporting?

Excluding divested businesses and acquisitions from revenue reporting helps investors evaluate revenue growth and trends on a more comparable basis. It allows for a clearer understanding of the performance of the ongoing core business without the distortion caused by past sales or recent purchases.

How does Verizon define Net Debt and its ratio to Consolidated Adjusted EBITDA?

Net Debt is calculated by subtracting cash and cash equivalents from the sum of short-term and long-term debt. The Net Debt to Consolidated Adjusted EBITDA Ratio uses this Net Debt figure and compares it to the company's Consolidated Adjusted EBITDA over the last twelve months, providing a measure of Verizon's ability to service its debt obligations.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. filed an 8-K on April 20, 2017, primarily to report financial results and operational updates for the period ending around April 2017. The filing highlights the company's use of non-GAAP financial measures to provide investors with a clearer view of performance, excluding the impacts of divestitures and acquisitions. This approach aims to enhance comparability and understanding of underlying business trends and operational profitability. Key details within the filing revolve around the definitions and rationale for various non-GAAP metrics, including Consolidated Operating Revenues Excluding Divested Businesses and Acquisitions, EBITDA, Adjusted EBITDA, Net Debt, and Adjusted Earnings per Common Share. Investors are encouraged to review these non-GAAP measures alongside GAAP figures to gain a comprehensive perspective on Verizon's financial health and strategic direction, particularly in the context of ongoing business adjustments.

Key Highlights

1The 8-K filing discloses Verizon's financial results and operational condition as of April 20, 2017.
2Verizon extensively utilizes and defines several non-GAAP financial measures to provide enhanced insight into performance.
3Key non-GAAP measures include 'Consolidated Operating Revenues Excluding Divested Businesses and Acquisitions' to ensure comparable revenue trend analysis.
4The company defines EBITDA and EBITDA Margin, explaining their utility in assessing operating profitability relative to capital expenditures and competitors.
5Consolidated Adjusted EBITDA is detailed, excluding non-operational items and impacts of divested businesses for better trend analysis and comparability.
6Metrics like Net Debt and Net Debt to Consolidated Adjusted EBITDA Ratio are presented to evaluate debt servicing capabilities.
7Adjusted Earnings per Common Share (Adjusted EPS) is defined to present a clearer view of operating trends by excluding non-operational items.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Apr 20, 2017)

Summary

Key Highlights

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