What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to officially report Verizon's financial results for the period ending March 31, 2018, and to provide detailed explanations of the non-GAAP financial measures the company uses in its reporting, alongside the attached press release and financial tables.

Why does Verizon emphasize non-GAAP financial measures like Adjusted EBITDA?

Verizon emphasizes non-GAAP measures to provide investors with a more comparable view of its underlying business performance and operational trends. By excluding certain 'special items' (like severance costs, gains from divestitures, or acquisition costs), these measures aim to reflect the company's core operational profitability more consistently period-over-period and in comparison to peers, without the distortion of infrequent or non-operational events.

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

Verizon defines 'Net Debt' as total debt (both short-term and long-term) minus cash and cash equivalents. The 'Net Debt to Consolidated Adjusted EBITDA Ratio' is calculated by dividing this Net Debt by the company's Consolidated Adjusted EBITDA (adjusted for operating results from divested businesses) over the last twelve months. This ratio is presented as a key metric for investors and rating agencies to evaluate Verizon's ability to service its debt obligations.

VZ 8-K: Earnings & Results

Q: What impact does the adoption of ASC 606 have on Verizon's reported financials?

The adoption of ASC 606, the new revenue recognition standard, became effective for Verizon on January 1, 2018. This filing indicates that the company's non-GAAP revenue measures, such as 'Consolidated Operating Revenues Excluding Oath, Divested Businesses and the Revenue Recognition Standard,' specifically exclude the impacts of this new accounting standard to allow for more comparable revenue trend analysis.

Summary

Verizon Communications Inc. (VZ) filed an 8-K on April 24, 2018, to announce its financial results and provide updated non-GAAP financial measures. The filing primarily serves to attach a press release and financial tables detailing the company's performance for the period ending March 31, 2018. Investors should note the company's emphasis on several non-GAAP financial metrics, including Adjusted EBITDA and Adjusted Earnings Per Share, which are presented to offer a clearer view of underlying business trends and operational performance by excluding certain "special items" such as severance costs, gains on divested businesses, and acquisition-related expenses. The company also detailed its methodologies for calculating these non-GAAP measures, including "Consolidated Operating Revenues Excluding Oath, Divested Businesses and the Revenue Recognition Standard" and "Net Debt to Consolidated Adjusted EBITDA Ratio." These adjustments aim to provide a more comparable basis for evaluating revenue growth, operating profitability, and debt serviceability, particularly in light of recent business divestitures and the adoption of new revenue recognition standards (ASC 606). Investors are encouraged to review the accompanying press release and financial tables for detailed figures and reconciliations between GAAP and non-GAAP measures.

Key Highlights

1Verizon filed an 8-K on April 24, 2018, reporting financial results and providing non-GAAP financial information.
2The filing includes a press release and financial tables dated April 24, 2018.
3Verizon utilizes several non-GAAP financial measures, including Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA Margin, and Adjusted Earnings Per Common Share (Adjusted EPS).
4These non-GAAP measures are used to present a view of operational performance excluding 'special items' like severance costs, gains on divested businesses, and acquisition-related costs.
5The company also defines non-GAAP measures related to revenue, such as 'Consolidated Operating Revenues Excluding Oath, Divested Businesses and the Revenue Recognition Standard', to provide a comparable view of revenue trends.
6Key debt metrics like 'Net Debt' and 'Net Debt to Consolidated Adjusted EBITDA Ratio' are provided as non-GAAP measures to assess debt servicing ability.
7The filing highlights the adoption of Accounting Standards Codification Topic 606 (ASC 606) 'Revenues from Contracts with Customers' effective January 1, 2018, and its impact on financial reporting.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Apr 24, 2018)

Summary

Key Highlights

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