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

The main purpose of this 8-K filing is to publicly release Verizon's financial results and operational information for the period ending December 31, 2018, through an attached press release and financial tables. It also serves to explain the non-GAAP financial measures the company uses.

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

Verizon emphasizes non-GAAP measures like Adjusted EBITDA because they believe these metrics provide a more relevant and useful view of the company's ongoing operational performance and underlying business trends. By excluding items such as special charges, acquisition costs, and impacts from accounting standard changes, these measures aim to offer better comparability across periods and with competitors, aligning with how management assesses business performance.

What are some of the 'special items' that Verizon excludes when calculating Adjusted EBITDA and Adjusted EPS?

Some of the 'special items' that Verizon excludes include goodwill impairment (specifically mentioning Oath goodwill), severance charges, net gains on the sale of divested businesses, product realignment charges, and acquisition and integration-related charges. These are items that management views as not indicative of regular, ongoing operational performance.

How does Verizon define Net Debt and the Net Debt to Consolidated Adjusted EBITDA Ratio?

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 is then calculated by dividing this Net Debt by 'Consolidated Adjusted EBITDA Excluding Operating Results from Divested Businesses' (calculated on a trailing twelve-month basis). These metrics are used by Verizon to evaluate its ability to service its debt.

VZ 8-K: Earnings & Results

Summary

This 8-K filing from Verizon Communications Inc. (VZ), dated January 29, 2019, primarily disseminates a press release and financial tables related to the company's fourth-quarter and full-year 2018 performance. The report highlights Verizon's reliance on non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, to provide investors with a clearer view of operational performance and business trends, adjusted for factors like acquisition costs, divestitures, and accounting standard changes (Topic 606). Key takeaways for investors include the company's efforts to present financial results that exclude certain "special items" and non-operational impacts to facilitate comparisons with prior periods and competitors. The company emphasizes these non-GAAP metrics for assessing operating profitability, debt servicing ability, and overall business health. Investors should pay close attention to the definitions and calculations of these non-GAAP measures provided within the filing.

Key Highlights

1Verizon Communications Inc. filed an 8-K on January 29, 2019, including a press release and financial tables dated the same day.
2The filing's primary purpose is to present financial results and operational highlights for the period ending December 31, 2018.
3Verizon heavily utilizes non-GAAP financial measures, including various forms of EBITDA and Adjusted EBITDA, to report performance.
4These non-GAAP measures are presented to enhance the understanding of the company's financial performance by excluding certain items like acquisition and integration costs, severance charges, and goodwill impairments.
5The report details the calculation methodologies for key non-GAAP metrics such as Consolidated Adjusted EBITDA, Segment EBITDA, and Net Debt to Consolidated Adjusted EBITDA Ratio.
6Verizon explains the rationale behind using these non-GAAP measures, citing comparability to prior periods, competitors, and management's internal assessment of business trends.
7The filing also references the adoption of Accounting Standards Codification Topic 606 (Revenue Recognition) and provides adjusted measures to ensure comparability with periods prior to its adoption.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 29, 2019)

Summary

Key Highlights

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