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

The primary purpose of this 8-K filing is to publicly disclose Verizon's operational and financial results through an attached press release and financial tables dated October 21, 2020. It also serves to explain the company's use of various non-GAAP financial measures.

Why does Verizon provide non-GAAP financial measures like Adjusted EBITDA and Adjusted EPS?

Verizon provides non-GAAP measures to offer investors a more detailed understanding of its financial performance and underlying business trends. These measures are intended to exclude the impact of certain non-operational items, special charges, or differences in capital structure and depreciation policies, allowing for better comparability to prior periods and competitors.

What is Free Cash Flow, and how is it calculated by Verizon?

Free Cash Flow is a non-GAAP measure that Verizon uses to provide an additional perspective on its liquidity. It is calculated by subtracting capital expenditures (including capitalized software) from the net cash provided by operating activities. The company views this as a complement to its GAAP financial statements.

Are there any forward-looking statements or guidance provided in this filing?

This specific 8-K filing primarily focuses on reporting past results and explaining non-GAAP methodologies. While it mentions 'Adjusted EPS Growth Forecast' and 'Adjusted Effective Income Tax Rate Attributable to Verizon Forecast,' it states that reconciliations for these forecasts are not provided because predicting future special items would require unreasonable effort.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. (VZ) filed an 8-K on October 21, 2020, to announce operational and financial results. The filing primarily serves to attach a press release and financial tables dated October 21, 2020, which provide detailed financial performance information. Of note, the filing emphasizes Verizon's use of various non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Net Unsecured Debt to Adjusted EBITDA Ratio, Adjusted Earnings per Common Share (Adjusted EPS), and Free Cash Flow. The company explains its rationale for using these measures, stating they offer investors a more comprehensive understanding of performance and underlying business trends by excluding certain non-operational and special items. Investors should carefully review these non-GAAP disclosures alongside the reported GAAP figures to fully grasp the company's financial health and operational effectiveness.

Key Highlights

1The 8-K filing includes a press release and financial tables dated October 21, 2020, detailing Verizon's operational and financial results.
2Verizon extensively utilizes non-GAAP financial measures to provide enhanced insights into performance.
3Key non-GAAP metrics discussed include EBITDA, Consolidated Adjusted EBITDA, and Segment EBITDA, used to evaluate profitability.
4The company also highlights Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio as a measure of its ability to service debt.
5Adjusted Earnings per Common Share (Adjusted EPS) is presented to offer a view of operating results excluding special items.
6Free Cash Flow is provided as a measure of liquidity, calculated by subtracting capital expenditures from operating cash flow.
7Reconciliations for non-GAAP measures to their corresponding GAAP figures are available in the accompanying schedules.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Oct 21, 2020)

Summary

Key Highlights

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