8-KEarnings & ResultsExhibits & Filings

VERIZON COMMUNICATIONS INC 8-K Report, Financial Results (Jan 25, 2022)

Filed January 25, 2022For Securities:VZ

Summary

Verizon Communications Inc. (VZ) filed an 8-K on January 25, 2022, primarily to furnish a press release and financial tables dated January 25, 2022. The filing emphasizes the use of non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted Earnings per Common Share (Adjusted EPS), alongside their respective forecasts. These non-GAAP measures are presented to offer a more comprehensive understanding of the company's performance and trends, excluding items such as severance charges, gains/losses from dispositions, and spectrum license impacts, which management believes can obscure underlying operational effectiveness and comparability across periods and with competitors. Investors are encouraged to review these non-GAAP figures in conjunction with the company's GAAP financial statements for a complete financial picture.

Key Highlights

  • 1Verizon Communications Inc. filed an 8-K on January 25, 2022, attaching a press release and financial tables released on the same date.
  • 2The filing extensively details and defines various non-GAAP financial measures used by Verizon, including EBITDA, Segment EBITDA, EBITDA Margin, Consolidated Adjusted EBITDA, Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, and Adjusted Earnings per Common Share (Adjusted EPS).
  • 3Management intends to use these non-GAAP measures to provide enhanced understanding of financial performance, operational trends, and comparability with peers, by excluding certain items like severance charges, gains/losses from business dispositions, and spectrum license impacts.
  • 4The company provided forecasts for Consolidated Adjusted EBITDA Growth, Adjusted EPS, and Adjusted Effective Income Tax Rate (Adjusted ETR), but noted that reconciliations for these forecasts to GAAP were not provided due to the unpredictable nature of future special items.
  • 5Key non-GAAP metrics discussed include Consolidated Adjusted EBITDA (excluding non-operational and special items) and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, which are presented to evaluate operational effectiveness and debt servicing ability.
  • 6Free Cash Flow is also defined as a non-GAAP measure, calculated by subtracting capital expenditures from net cash provided by operating activities, and is presented as a complement to GAAP cash flow statements.
  • 7The filing emphasizes that non-GAAP measures should be considered in addition to, not instead of, GAAP financial statements and may not be directly comparable to those of other companies.

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally submit Verizon's press release and financial tables, dated January 25, 2022, to the SEC. These documents provide an update on the company's financial condition and results of operations, with a strong emphasis on non-GAAP financial measures.

Verizon is highlighting several key non-GAAP measures including Consolidated EBITDA, Segment EBITDA, EBITDA Margin, Consolidated Adjusted EBITDA, Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, Adjusted Earnings per Common Share (Adjusted EPS), and Free Cash Flow. These measures are used to provide a clearer view of operational performance and trends, excluding certain items that management deems special or non-operational.

Verizon uses non-GAAP measures to enhance investors' understanding of its financial performance and underlying business trends, believing they offer better comparability across periods and with competitors, especially by excluding items like severance charges, business disposition gains/losses, and spectrum license impacts. Investors should interpret these measures as supplemental to, and not a replacement for, GAAP financial statements, always reviewing them in conjunction with the company's official GAAP reporting for a complete financial picture.

Yes, Verizon provides forecasts for Consolidated Adjusted EBITDA Growth, Adjusted EPS, and Adjusted Effective Income Tax Rate (Adjusted ETR). However, the company states that reconciliations of these forecasts to the most directly comparable GAAP measures are not provided because predicting the timing and magnitude of future "special items" that could affect GAAP results is not possible without unreasonable effort.