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

The primary purpose of this 8-K filing is to formally attach Verizon's press release and financial tables dated January 30, 2020. This document serves as the official public record of the information released by the company regarding its financial condition and results of operations for the period.

Why does Verizon focus so heavily on non-GAAP financial measures?

Verizon uses non-GAAP measures like Adjusted EBITDA, Adjusted EPS, and Free Cash Flow because management believes they provide a more relevant and useful understanding of the company's underlying business trends and operational profitability. These measures exclude certain items (e.g., impairments, severance, integration costs) that may vary significantly between periods or are not considered part of core, ongoing operations, thus facilitating better comparisons with prior periods and competitors.

What are some of the 'special items' that are excluded in Verizon's non-GAAP calculations?

Special items excluded from Verizon's non-GAAP calculations can include a range of items such as impairment charges (e.g., goodwill impairment for its media business), severance charges, product realignment charges (like for the go90 platform), acquisition and integration-related charges, and net gains or losses from asset dispositions. The company details these exclusions to offer transparency into how its adjusted figures are derived.

How does Verizon's supplemental segment information help investors?

The supplemental operating information for Wireless and Wireline segments is designed to help investors understand performance trends following Verizon's strategic reorganization into the Verizon Consumer Group and Verizon Business Group, effective April 1, 2019. It provides adjusted results that bridge the gap between the historical segment reporting structure and the new structure, making it easier to compare results across different periods.

VZ 8-K: Earnings & Results

Summary

This 8-K filing from Verizon Communications Inc., dated January 30, 2020, primarily serves to attach a press release and financial tables detailing the company's operational and financial performance. A key takeaway for investors is Verizon's continued emphasis on non-GAAP financial measures, such as EBITDA, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow. These metrics are presented to offer a clearer view of underlying business trends and operational profitability, by excluding items like impairments, severance charges, and integration costs, which management believes can obscure comparability between periods and with competitors. The company also provides details on how these non-GAAP measures are calculated and why they are considered useful for evaluating operating profitability, ability to service debt, and underlying business trends. The filing also includes supplemental information on Wireless and Wireline segment results, adjusted to align with the new segment structure (Verizon Consumer Group and Verizon Business Group) implemented in April 2019, aiding investors in tracking performance trends post-reorganization. While the filing doesn't contain specific numerical results, it sets the stage for the detailed financial performance reported in the accompanying press release and tables.

Key Highlights

1Verizon Communications Inc. filed an 8-K on January 30, 2020, to attach its January 30, 2020, press release and financial tables.
2The filing emphasizes the use of Non-GAAP financial measures to provide a more comparable view of operating performance, including EBITDA, Adjusted EBITDA, and Free Cash Flow.
3Key non-GAAP metrics are defined, such as Adjusted EBITDA, which excludes specific non-operational and special items like impairments, severance, and integration costs.
4The company explains its use of non-GAAP measures to evaluate operating profitability, debt service ability, and underlying business trends, both on a consolidated and segment basis.
5Supplemental operating information for Wireless and Wireline segments is provided to help investors reconcile new segment reporting (Consumer and Business Groups) with historical presentations.
6Definitions for Net Debt to Consolidated Adjusted EBITDA Ratio and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio are included, indicating a focus on financial leverage and debt management.
7The filing references reconciliation schedules for non-GAAP measures to GAAP, which are expected to be found in the accompanying exhibits.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 30, 2020)

Summary

Key Highlights

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