Summary
This 8-K filing from Verizon Communications Inc. (VZ), filed on July 27, 2017, primarily serves to furnish a press release and financial tables detailing the company's operational and financial performance. The key focus of this report is the detailed explanation and presentation of various non-GAAP financial measures that Verizon utilizes. These measures, such as "Consolidated Operating Revenues Excluding Divested Businesses and Acquisitions," "EBITDA," "Consolidated Adjusted EBITDA," and "Adjusted Earnings per Common Share," are provided to offer investors a clearer understanding of the company's performance trends, operational effectiveness, and financial health, particularly in light of recent divestitures and acquisitions. Investors are encouraged to review these non-GAAP metrics alongside the standard GAAP financials. Verizon emphasizes that these non-GAAP measures are intended to enhance comparability across periods and against competitors, by excluding the impact of divested businesses, recent acquisitions, and certain "special items" like severance costs, actuarial gains/losses, and acquisition-related expenses. The report also introduces measures like "Net Debt" and "Net Debt to Consolidated Adjusted EBITDA Ratio" to assess the company's debt servicing capabilities. Overall, the filing aims to provide a more nuanced view of Verizon's underlying business performance and financial standing.
Key Highlights
- 1Verizon is providing detailed non-GAAP financial measures to offer investors enhanced insights into operational and financial performance.
- 2Key non-GAAP metrics include "Consolidated Operating Revenues Excluding Divested Businesses and Acquisitions" and "Consolidated Adjusted EBITDA" to ensure comparability.
- 3The filing explicitly defines and explains the calculation methodology for various non-GAAP measures, including EBITDA, Adjusted EBITDA, and Adjusted EPS.
- 4Verizon clarifies that these non-GAAP measures exclude the impact of divested businesses (e.g., local landline, data center businesses) and recent acquisitions (e.g., XO Holdings, Fleetmatics, Telogis, Yahoo! operating business).
- 5"Special items" such as actuarial gains/losses, severance costs, and acquisition/integration costs are excluded from "Consolidated Adjusted EBITDA" and "Adjusted Earnings per Common Share" for improved trend analysis.
- 6The report introduces "Net Debt" and "Net Debt to Consolidated Adjusted EBITDA Ratio" as measures of the company's leverage and ability to service debt.
- 7The filing is accompanied by a press release and financial tables dated July 27, 2017, which contain the detailed financial data.