REG-VerizonCommunication: Final Results <Origin Href="QuoteRef">VZ.N</Origin> - Part 2

Verizon CommunicationsAnnouncement

21/01/2016 12:10

- Part 2: For the preceding part double click  ID:nPRrL4A19a 

                          112,108        108,211        3.6      
                                                                                                                                
                                                 3 Mos. Ended   3 Mos. Ended              12 Mos. Ended  12 Mos. Ended          
                                                                                                                                
Unaudited                                       12/31/15       12/31/14        % Change  12/31/15       12/31/14        % Change
                                                                                                                                
Net Add Detail ('000) (1)                                                                                                       
                                                                                                                                
 Retail postpaid                                1,519          1,986          (23.5)     4,507          5,482          (17.8)   
                                                                                                                                
 Retail prepaid                                 (157)          81              *         (551)          86              *       
                                                                                                                                
Retail                                          1,362          2,067          (34.1)     3,956          5,568          (29.0)   
                                                                                                                                
Account Statistics                                                                                                              
                                                                                                                                
Retail Postpaid Accounts ('000) (2)                                                      35,736         35,616         0.3      
                                                                                                                                
Retail postpaid ARPA                            $     148.30   $     158.82   (6.6)      $       152.63 $       159.86 (4.5)    
                                                                                                                                
Retail postpaid connections per account (2)                                              2.98           2.87           3.8      
                                                                                                                                
Churn Detail                                                                                                                    
                                                                                                                                
Retail postpaid                                 0.96%          1.14%                     0.96%          1.04%                   
                                                                                                                                
Retail                                          1.23%          1.39%                     1.24%          1.33%                   
                                                                                                                                
Retail Postpaid Connection Statistics                                                                                           
                                                                                                                                
Total Smartphone postpaid % of phones activated 93.7%          93.6%                     92.1%          91.6%                   
                                                                                                                                
Total Smartphone postpaid phone base (2)                                                 83.7%          78.6%                   
                                                                                                                                
Total Internet postpaid base (2)                                                         16.8%          14.1%                   
                                                                                                                                
Other Operating Statistics                                                                                                      
                                                                                                                                
Capital expenditures (in millions)              $        3,259 $        2,707 20.4       $       11,725 $       10,515 11.5     
                                                                                                                                

   

Footnotes:                                                                                                 
                                                                                                           
(1) Connection net additions exclude acquisitions and adjustments.                                         
                                                                                                           
(2) Statistics presented as of end of period.                                                              
                                                                                                           
    The segment financial results and metrics above are adjusted to exclude the                            
    effects of non-operational items, as the Company's chief operating decision                            
    maker excludes these items in assessing business unit performance.                                     
                                                                                                           
    Intersegment transactions have not been eliminated.                                                    
                                                                                                           
    Certain reclassifications have been made, where appropriate, to reflect                                
    comparable operating results.                                                                          
                                                                                                           
*   Not meaningful                                                                                         

   

Verizon Communications Inc.                                                                                                      
                                                                                                                                 
Wireline - Selected Financial Results                                                                                            
                                                                                                                                 
                                                                                                        (dollars in millions)    
                                                                                                                                 
                                             3 Mos. Ended   3 Mos. Ended               12 Mos. Ended    12 Mos. Ended            
                                                                                                                                 
Unaudited                                   12/31/15       12/31/14         % Change  12/31/15         12/31/14          % Change
                                                                                                                                 
Operating Revenues                                                                                                               
                                                                                                                                 
 Consumer retail                            $        4,082 $        3,977  2.6        $       16,123   $       15,583   3.5      
                                                                                                                                 
 Small business                             572            606             (5.6)      2,350            2,464            (4.6)    
                                                                                                                                 
Mass Markets                                4,654          4,583           1.5        18,473           18,047           2.4      
                                                                                                                                 
 Strategic services                         2,075          2,111           (1.7)      8,165            8,324            (1.9)    
                                                                                                                                 
 Core                                       1,172          1,248           (6.1)      4,778            5,325            (10.3)   
                                                                                                                                 
Global Enterprise                           3,247          3,359           (3.3)      12,943           13,649           (5.2)    
                                                                                                                                 
Global Wholesale                            1,498          1,501           (0.2)      5,979            6,190            (3.4)    
                                                                                                                                 
Other                                       74             117             (36.8)     325              543              (40.1)   
                                                                                                                                 
Total Operating Revenues                    9,473          9,560           (0.9)      37,720           38,429           (1.8)    
                                                                                                                                 
Operating Expenses                                                                                                               
                                                                                                                                 
Cost of services                            5,182          5,326           (2.7)      20,878           21,332           (2.1)    
                                                                                                                                 
Selling, general and administrative expense 1,999          1,952           2.4        7,989            8,180            (2.3)    
                                                                                                                                 
Depreciation and amortization expense       1,603          1,866           (14.1)     6,678            7,882            (15.3)   
                                                                                                                                 
Total Operating Expenses                    8,784          9,144           (3.9)      35,545           37,394           (4.9)    
                                                                                                                                 
Operating Income                            $              $           416 65.6       $          2,175 $          1,035  *       
                                            689                                                                                  
                                                                                                                                 
Operating Income Margin                     7.3%           4.4%                       5.8%             2.7%                      
                                                                                                                                 
Segment EBITDA                              $        2,292 $        2,282  0.4        $          8,853 $          8,917 (0.7)    
                                                                                                                                 
Segment EBITDA Margin                       24.2%          23.9%                      23.5%            23.2%                     
                                                                                                                                 

   

Footnotes:                                                                       
                                                                                 
  The segment financial results and metrics above are adjusted to exclude the    
  effects of non-operational items,  as the Company's chief operating decision   
  maker excludes these items in assessing business unit performance.             
                                                                                 
  Intersegment transactions have not been eliminated.                            
                                                                                 
  Certain reclassifications have been made, where appropriate, to reflect        
  comparable operating results.                                                  
                                                                                 
* Not meaningful                                                                 

   

Verizon Communications Inc.                                                                                                          
                                                                                                                                     
Wireline - Selected Operating Statistics                                                                                             
                                                                                                                                     
Unaudited                                                                                     12/31/15       12/31/14        % Change
                                                                                                                                     
Connections ('000)                                                                                                                   
                                                                                                                                     
 Fios Video Subscribers                                                                       5,827          5,649          3.2      
                                                                                                                                     
 Fios Internet Subscribers                                                                    7,034          6,616          6.3      
                                                                                                                                     
 Fios Digital voice residence connections                                                     4,754          4,602          3.3      
                                                                                                                                     
Fios Digital connections                                                                      17,615         16,867         4.4      
                                                                                                                                     
 HSI                                                                                          2,194          2,589          (15.3)   
                                                                                                                                     
Total Broadband connections                                                                   9,228          9,205          0.2      
                                                                                                                                     
 Primary residence switched access connections                                                4,784          5,596          (14.5)   
                                                                                                                                     
Primary residence connections                                                                 9,538          10,198         (6.5)    
                                                                                                                                     
Total retail residence voice connections                                                      9,885          10,615         (6.9)    
                                                                                                                                     
Total voice connections                                                                       18,387         19,795         (7.1)    
                                                                                                                                     
                                                        3 Mos. Ended  3 Mos. Ended             12 Mos. Ended  12 Mos. Ended          
                                                                                                                                     
Unaudited                                              12/31/15      12/31/14       % Change  12/31/15       12/31/14        % Change
                                                                                                                                     
Net Add Detail ('000)                                                                                                                
                                                                                                                                     
 Fios Video Subscribers                                20            116           (82.8)     178            387            (54.0)   
                                                                                                                                     
 Fios Internet Subscribers                             99            145           (31.7)     418            544            (23.2)   
                                                                                                                                     
 Fios Digital voice residence connections              51            88            (42.0)     152            354            (57.1)   
                                                                                                                                     
Fios Digital connections                               170           349           (51.3)     748            1,285          (41.8)   
                                                                                                                                     
 HSI                                                   (94)          (86)          9.3        (395)          (354)          11.6     
                                                                                                                                     
Total Broadband connections                            5             59            (91.5)     23             190            (87.9)   
                                                                                                                                     
 Primary residence switched access connections         (198)         (198)         -          (812)          (885)          (8.2)    
                                                                                                                                     
Primary residence connections                          (147)         (110)         33.6       (660)          (531)          24.3     
                                                                                                                                     
Total retail residence voice connections               (166)         (128)         29.7       (730)          (614)          18.9     
                                                                                                                                     
Total voice connections                                (353)         (294)         20.1       (1,408)        (1,290)        9.1      
                                                                                                                                     
Revenue Statistics                                                                                                                   
                                                                                                                                     
Fios revenues (in millions)                            $             $             6.8        $       13,763 $       12,674 8.6      
                                                        3,534         3,308                                                          
                                                                                                                                     
Strategic services as a % of total Enterprise revenues 63.9%         62.8%                    63.1%          61.0%                   
                                                                                                                                     
Other Operating Statistics                                                                                                           
                                                                                                                                     
Capital expenditures (in millions)                     $             $             5.1        $              $              (12.2)   
                                                        1,636         1,556                    5,049          5,750                  
                                                                                                                                     
Wireline employees ('000)                                                                     70.9           76.8                    
                                                                                                                                     
Fios Video Open for Sale ('000)                                                               16,492         15,776                  
                                                                                                                                     
Fios Video penetration                                                                        35.3%          35.8%                   
                                                                                                                                     
Fios Internet Open for Sale ('000)                                                            16,832         16,109                  
                                                                                                                                     
Fios Internet penetration                                                                     41.8%          41.1%                   
                                                                                                                                     

   

Footnotes:                                                                      
                                                                                
 The segment financial results and metrics above are adjusted to exclude the    
 effects of non-operational items, as the Company's chief operating decision    
 maker excludes these items in assessing business unit performance.             
                                                                                
 Intersegment transactions have not been eliminated.                            
                                                                                
 Certain reclassifications have been made, where appropriate, to reflect        
 comparable operating results.                                                  

   

Verizon Communications Inc.                                                                                                                                                                
                                                                                                                                                                                           
Reconciliations - Consolidated Verizon                                                                                                                                                     
                                                                                                                                                                                           
Adjusted Operating Revenues                                                                                                                                                                
                                                                                                                                                                                           
                                                                                                                                                                      (dollars in millions)
                                                                                                                                                                                           
                                                                                                                                                   12 Mos. Ended       12 Mos. Ended       
                                                                                                                                                                                           
Unaudited                                                                                                                                         12/31/15            12/31/14             
                                                                                                                                                                                           
Consolidated Operating Revenues                                                                                                                   $        131,620    $        127,079     
                                                                                                                                                                                           
     Less Impact of divested operations                                                                                                           -                   256                  
                                                                                                                                                                                           
Consolidated Adjusted Operating Revenues                                                                                                          131,620             126,823              
                                                                                                                                                                                           
Adjusted EBITDA                                                                                                                                                                            
                                                                                                                                                                                           
                                                                                                                                                                      (dollars in millions)
                                                                                                                                                                                           
                                               3 Mos.            3 Mos.         3 Mos.         3 Mos.         3 Mos.             3 Mos.            3 Mos.              3 Mos.              
                                                                                                                                                                                           
                                               Ended             Ended          Ended          Ended          Ended              Ended             Ended               Ended               
                                                                                                                                                                                           
Unaudited                                     12/31/15          9/30/15        6/30/15        3/31/15        12/31/14           9/30/14           6/30/14             3/31/14              
                                                                                                                                                                                           
Verizon Consolidated EBITDA                                                                                                                                                                
                                                                                                                                                                                           
Consolidated net income (loss)                $           5,513 $        4,171 $        4,353 $        4,338 $          (2,148) $           3,794 $             4,324 $             5,986  
                                                                                                                                                                                           
Add/(Subtract):                                                                                                                                                                            
                                                                                                                                                                                           
Provision (benefit) for income taxes          3,065             2,195          2,274          2,331          (1,738)            1,864             2,220               968                  
                                                                                                                                                                                           
Interest expense                              1,178             1,202          1,208          1,332          1,282              1,255             1,164               1,214                
                                                                                                                                                                                           
Other (income) and expense, net               (28)              (51)           (32)           (75)           437                (71)              (66)                894                  
                                                                                                                                                                                           
Equity in (earnings) losses of unconsolidated 16                18             18             34             31                 48                43                  (1,902)              
businesses                                                                                                                                                                                 
                                                                                                                                                                                           
Operating income (loss)                       9,744             7,535          7,821          7,960          (2,136)            6,890             7,685               7,160                
                                                                                                                                                                                           
Add Depreciation and amortization expense     4,039             4,009          3,980          3,989          4,068              4,167             4,161               4,137                
                                                                                                                                                                                           
Consolidated EBITDA                           $        13,783   $      11,544  $      11,801  $      11,949  $            1,932 $         11,057  $           11,846  $           11,297   
                                                                                                                                                                                           
Other Items (Before Tax)                                                                                                                                                                   
                                                                                                                                                                                           
Severance, Pension, and Benefit (Credits)/    (2,598)           342            -              -              7,507              -                 -                   -                    
Charges                                                                                                                                                                                    
                                                                                                                                                                                           
Gain on Spectrum License Transactions         (254)             -              -              -              -                  -                 (707)               -                    
                                                                                                                                                                                           
Impact of Divested Operations                                   -              -              -              -                  -                 (6)                 (6)                  
                                                                                                                                                                                           
Other                                                           -              -              -              334                -                 -                   -                    
                                                                                                                                                                                           
                                              (2,852)           342            -              -              7,841              -                 (713)               (6)                  
                                                                                                                                                                                           
Consolidated Adjusted EBITDA                  $        10,931   $      11,886  $      11,801  $      11,949  $            9,773 $         11,057  $           11,133  $           11,291   
                                                                                                                                                                                           
Consolidated Operating Income Margin - YTD(1) 25.1%                                                          15.4%                                                                         
                                                                                                                                                                                           
Consolidated EBITDA Margin - YTD(1)           37.3%                                                                                                                                        
                                                                                                                                                                                           
Consolidated Adjusted EBITDA Margin - YTD(1)  35.4%                                                          34.1%                                                                         
                                                                                                                                                                                           
(1) Year-to-date Consolidated Operating Income Margin, Consolidated EBITDA                                                                                                                 
Margin and Consolidated Adjusted EBITDA Margin are calculated using the sum of                                                                                                             
the quarterly results.                                                                                                                                                                     
                                                                                                                                                                                           
Net Debt to Adjusted EBITDA Ratio                                                                                                                                                          
                                                                                                                                                                                           
                                                                                                                                                                      (dollars in millions)
                                                                                                                                                                                           
Unaudited                                                                                                                                         12/31/15            12/31/14             
                                                                                                                                                                                           
Verizon Net Debt                                                                                                                                                                           
                                                                                                                                                                                           
Debt maturing within one year                                                                                                                     $             6,489 $             2,735  
                                                                                                                                                                                           
Long-term debt                                                                                                                                    103,705             110,536              
                                                                                                                                                                                           
Total Debt                                                                                                                                        110,194             113,271              
                                                                                                                                                                                           
Less Cash and cash equivalents                                                                                                                    4,470               10,598               
                                                                                                                                                                                           
Net Debt                                                                                                                                          $        105,724    $        102,673     
                                                                                                                                                                                           
Net Debt to Adjusted EBITDA Ratio                                                                                                                  2.3x                2.4x                
                                                                                                                                                                                           

   

Verizon Communications Inc.                                                                                                    
                                                                                                                               
Reconciliations - Consolidated Verizon                                                                                         
                                                                                                                               
Adjusted and Illustrative EPS                                                                                                  
                                                                                                                               
                                                   3 Mos. Ended        3 Mos. Ended         12 Mos. Ended  12 Mos. Ended       
                                                                                                                               
Unaudited                                          12/31/15            12/31/14            12/31/15       12/31/14             
                                                                                                                               
Earnings Per Common Share, Reported                $              1.32 $            (0.54) $              $               2.42 
                                                                                             4.37                              
                                                                                                                               
Severance, Pension, and Benefit (Credits)/Charges  (0.40)              1.12                (0.34)         1.17                 
                                                                                                                               
Gain on Spectrum License Transactions              (0.04)              -                   (0.04)         (0.11)               
                                                                                                                               
Early Debt Redemption and Other Costs              -                   0.13                -              0.28                 
                                                                                                                               
Gain on Sale of Omnitel Interest                   -                   -                   -              (0.47)               
                                                                                                                               
Wireless Transaction Costs                         -                   -                   -              0.07                 
                                                                                                                               
Adjusted EPS                                       $              0.89 $             0.71  3.99           3.35                 
                                                                                                                               
Income from Vodafone noncontrolling interest                                               -              0.29                 
                                                                                                                               
Wireless transaction costs                                                                 -              (0.06)               
                                                                                                                               
Elimination of Omnitel equity income                                                       -              (0.01)               
                                                                                                                               
Dilutive effect of share issuance                                                          -              (0.14)               
                                                                                                                               
Illustrative EPS                                                                           $              $               3.42 
                                                                                             3.99                              
                                                                                                                               
Note: EPS may not add due to rounding.                                                                                         
                                                                                                                               
Free Cash Flow                                                                                            (dollars in millions)
                                                                                                                               
                                                                                                           12 Mos. Ended       
                                                                                                                               
Unaudited                                                                                                 12/31/15             
                                                                                                                               
Net cash provided by operating activities                                                                 $           38,930   
                                                                                                                               
Less Capital expenditures                                                                                 17,775               
                                                                                                                               
Free Cash Flow                                                                                            $           21,155   
                                                                                                                               
Less Proceeds from monetization of tower assets                                                           2,346                
                                                                                                                               
Free Cash Flow Adjusted for Tower Transaction                                                             $           18,809   

   

Verizon Communications Inc.                                                                                                
                                                                                                                           
Reconciliations - Segments                                                                                                 
                                                                                                                           
Wireless                                                                                                                   
                                                                                                                           
                                                                                                      (dollars in millions)
                                                                                                                           
                                            3 Mos. Ended         3 Mos. Ended       12 Mos. Ended       12 Mos. Ended      
                                                                                                                           
Unaudited                                  12/31/15            12/31/14            12/31/15           12/31/14             
                                                                                                                           
Wireless Segment EBITDA                                                                                                    
                                                                                                                           
Operating income                           $             6,799 $             5,502 $           29,973 $         26,760     
                                                                                                                           
Add Depreciation and amortization expense  2,305               2,152               8,980              8,459                
                                                                                                                           
Wireless Segment EBITDA                    $             9,104 $             7,654 $           38,953 $         35,219     
                                                                                                                           
Wireless total operating revenues          $           23,734  $           23,449  $           91,680 $         87,646     
                                                                                                                           
Wireless service revenues                  $           17,195  $           18,209  $           70,396 $         72,630     
                                                                                                                           
Wireless operating income margin           28.6%               23.5%               32.7%              30.5%                
                                                                                                                           
Wireless Segment EBITDA margin             38.4%               32.6%               42.5%              40.2%                
                                                                                                                           
Wireless Segment EBITDA service margin     52.9%               42.0%               55.3%              48.5%                
                                                                                                                           
Wireline                                                                                                                   
                                                                                                                           
                                                                                                      (dollars in millions)
                                                                                                                           
                                            3 Mos. Ended         3 Mos. Ended       12 Mos. Ended       12 Mos. Ended      
                                                                                                                           
Unaudited                                  12/31/15            12/31/14            12/31/15           12/31/14             
                                                                                                                           
Wireline Segment EBITDA                                                                                                    
                                                                                                                           
Operating income                           $                   $                   $                  $           1,035    
                                            689                 416                2,175                                   
                                                                                                                           
Add Depreciation and amortization expense  1,603               1,866               6,678              7,882                
                                                                                                                           
Wireline Segment EBITDA                    $             2,292 $             2,282 $                  $           8,917    
                                                                                   8,853                                   
                                                                                                                           
Wireline total operating revenues          $             9,473 $             9,560 $           37,720 $         38,429     
                                                                                                                           
Wireline operating income margin           7.3%                4.4%                5.8%               2.7%                 
                                                                                                                           
Wireline Segment EBITDA margin             24.2%               23.9%               23.5%              23.2%                

Media contact:
Bob Varettoni
908.559.6388
robert.a.varettoni@verizon.com


 SOURCE    Verizon


 



END



Copyright © 2016 PR Newswire Association, LLC. All Rights Reserved