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

The main purpose of this 8-K filing is to provide investors with a press release and financial tables dated April 21, 2021, which contain updated information on Verizon's results of operations and financial condition. It primarily serves to share the company's latest performance data and management's commentary on these results.

Why does Verizon provide non-GAAP financial measures?

Verizon provides non-GAAP financial measures because management believes they offer a more insightful view of the company's operational performance and underlying business trends. These measures are intended to enhance understanding by excluding certain items that may distort comparability between periods or with competitors, such as non-operational items, special items, and differences in capital structure or depreciation policies.

Which non-GAAP measures are highlighted in this report?

This report highlights several non-GAAP measures, including EBITDA, Segment EBITDA, Segment EBITDA Margin, Consolidated Adjusted EBITDA, Net Unsecured Debt, Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted Earnings per Common Share (Adjusted EPS). The company also discusses Free Cash Flow as a non-GAAP measure.

What are 'special items' and why are they excluded from some non-GAAP measures?

Special items are events or transactions that management considers to be non-operational or extraordinary, and which can vary significantly from period to period. Examples mentioned include severance charges, losses on spectrum licenses, and net losses from dispositions of assets. By excluding these special items, Verizon aims to present Adjusted EPS and Adjusted EBITDA in a way that allows for a more comparable assessment of the company's ongoing operational performance and trends.

VZ 8-K: Earnings & Results

Summary

Verizon Communications Inc. filed an 8-K report on April 21, 2021, primarily to furnish a press release and financial tables detailing their operational and financial performance. The report emphasizes Verizon's use of non-GAAP financial measures to provide a more comprehensive view of the company's performance, which management believes is beneficial for investors in understanding trends and comparing the company to its peers. These non-GAAP measures include EBITDA, Adjusted EBITDA, Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted Earnings per Common Share (Adjusted EPS), among others. The company aims to provide greater transparency into operational effectiveness and underlying business trends by excluding certain non-operational and special items from these metrics.

Key Highlights

1Verizon is providing updated financial and operational information through a press release and financial tables filed as an exhibit.
2The company is heavily utilizing non-GAAP financial measures (e.g., EBITDA, Adjusted EBITDA, Adjusted EPS) to present its performance and financial condition.
3Non-GAAP measures are explained and justified as tools for investors to better assess operational effectiveness, underlying business trends, and comparability to competitors.
4Key non-GAAP metrics discussed include EBITDA, Consolidated Adjusted EBITDA, Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted EPS.
5The report clarifies the calculation and purpose of various non-GAAP measures, highlighting their role in excluding non-operational and special items.
6Verizon's Free Cash Flow calculation is also detailed as a non-GAAP measure, intended to offer a more complete understanding of liquidity alongside GAAP results.
7Reconciliations for certain non-GAAP forecasts (Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio Forecast, Adjusted EPS Forecast, Adjusted ETR Forecast) are not provided due to the unpredictable nature of future special items.

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Apr 21, 2021)

Summary

Key Highlights

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