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

This 8-K filing serves to formally announce and provide access to Verizon's financial results and operational updates through an attached press release and financial tables dated August 1, 2019. It also clarifies the company's use of various non-GAAP financial measures.

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

Verizon uses non-GAAP measures to provide investors with additional insights into its operational performance, financial health, and comparability to peers. They believe these measures, by excluding certain items like interest, taxes, depreciation, amortization, and specific one-time or non-operational charges (like goodwill impairment or severance costs), offer a more relevant view of the underlying business trends and operating profitability.

What are 'special items' that Verizon excludes from its non-GAAP measures?

Special items excluded from certain non-GAAP measures, like Consolidated Adjusted EBITDA, include factors such as equity in losses/earnings of unconsolidated businesses, other income/expense, Oath goodwill impairment (related to its media business), severance charges, product realignment charges (like the discontinuation of go90), and acquisition/integration related charges.

How does Verizon reconcile its new segment reporting (Consumer and Business) to historical data?

The filing mentions that supplemental operating information is provided for Wireless and Wireline segments to help reconcile the results of the newly formed Verizon Consumer Group and Verizon Business Group (effective April 1, 2019) to historical segment presentations. This is achieved by adjusting for intersegment revenues and certain early-stage development businesses.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. (VZ) filed an 8-K on August 1, 2019, announcing key financial information and operational updates. The filing primarily attaches a press release and financial tables from August 1, 2019, which detail the company's financial performance. A significant portion of the report is dedicated to defining and explaining various non-GAAP financial measures that Verizon utilizes, such as EBITDA, Adjusted EBITDA, Net Debt, and their respective ratios. These non-GAAP metrics are presented as tools to enhance the understanding of the company's operational profitability and financial leverage, offering insights beyond standard GAAP reporting.

Key Highlights

1Verizon Communications Inc. filed an 8-K on August 1, 2019, attaching a press release and financial tables dated August 1, 2019.
2The report extensively details and defines several non-GAAP financial measures used by Verizon.
3Key non-GAAP measures discussed include EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt, and Net Debt to Consolidated Adjusted EBITDA Ratio.
4Verizon explains its rationale for using these non-GAAP measures, stating they provide a clearer view of operational performance, comparability to competitors, and an understanding of debt servicing capabilities.
5The filing defines specific items excluded from Adjusted EBITDA, such as Oath goodwill impairment, severance charges, product realignment charges, and acquisition/integration costs.
6Supplemental information is provided for Wireless and Wireline segments, reconciling new segment structures (Verizon Consumer Group and Verizon Business Group) to historical presentations.
7An 'Adjusted Effective Income Tax Rate Forecast' (Adjusted ETR Forecast) for fiscal year 2019 is mentioned as a non-GAAP measure, though a reconciliation is not provided due to the unpredictability of 'special items'.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Aug 1, 2019)

Summary

Key Highlights

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