VZ
$45.42
Verizon Communications
$.01
.02%
Earnings Details
1st Quarter March 2017
Thursday, April 20, 2017 7:30:00 AM
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Summary

Verizon Communications Misses

Verizon Communications (VZ) reported 1st Quarter March 2017 earnings of $0.95 per share on revenue of $29.8 billion. The consensus earnings estimate was $0.98 per share on revenue of $30.6 billion. The Earnings Whisper number was $0.98 per share. Revenue fell 7.3% compared to the same quarter a year ago.

Verizon Communications Inc is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its two segments are Wireless and Wireline.

Results
Reported Earnings
$0.95
Earnings Whisper
$0.98
Consensus Estimate
$0.98
Reported Revenue
$29.81 Bil
Revenue Estimate
$30.59 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Verizon 1Q results highlighted by strong wireless customer loyalty, network investment and growth in new markets

1Q 2017 highlights

Consolidated: 84 cents in earnings per share (EPS) and adjusted EPS (non-GAAP) of 95 cents, excluding non-operational items, compared with EPS of $1.06 in 1Q 2016.

Wireless: Retail postpaid churn of 1.15 percent, with strong customer loyalty demonstrated by retail postpaid phone churn of less than 0.90 percent for the eighth consecutive quarter; intra-quarter improvement in net additions following the launch of Verizon Unlimited.

-- Wireline: Fios total revenue growth of 4.7 percent.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported first-quarter 2017 results highlighted by strong wireless profitability and customer loyalty as the company introduced its Verizon Unlimited pricing option, and revenue growth for Fios broadband and Internet of Things (IoT) services.

https://mma.prnewswire.com/media/373129/s052548304_300_e1441481765799_Logo.jpg

"Our first-quarter results again demonstrated that customers value a high-quality network experience," said Chairman and CEO Lowell McAdam. "To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fiber network capabilities, began offering an unlimited pricing option and expanded our opportunities in new markets. We’re executing on strategies to capture future growth and create long-term shareholder value."

Verizon reported first-quarter 2017 EPS of 84 cents. Adjusted first-quarter 2017 EPS (non-GAAP) of 95 cents included a net of 11 cents per share in early debt redemption costs and a gain on a spectrum license transaction. This compares with first-quarter 2016 earnings of $1.06 per share on both a reported and adjusted basis.

Consolidated results

Total consolidated operating revenues in first-quarter 2017 were $29.8 billion, a 7.3 percent decrease compared with first-quarter 2016. On a comparable basis excluding divestitures and acquisitions in the period (non-GAAP), consolidated revenue declined approximately 4.5 percent.

Net income was $3.6 billion in first-quarter 2017, and EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $11.2 billion. Consolidated operating income margin was 24.1 percent. Consolidated EBITDA margin (non-GAAP) was 37.7 percent in first-quarter 2017, compared with 37.2 percent in first-quarter 2016.

Cash flow from operations was $1.7 billion during the quarter, including $3.4 billion in discretionary pension contributions. As a result of the contributions, Verizon’s mandatory pension funding through 2020 is expected to be minimal, which will benefit future cash flows and improve the funded status of qualified pension plans.

Capital expenditures totaled $3.1 billion in first-quarter 2017, as Verizon maintained its network leadership.

In Verizon’s media business, AOL delivered solid seasonal performance in first-quarter 2017. Revenue, net of traffic acquisition costs, decreased about 4 percent, driven by a higher percentage of programmatic advertising.

Total telematics revenues were $214 million in first-quarter 2017. Organically, IoT revenues, which include telematics, increased approximately 17 percent year over year.

Verizon also completed its acquisition of XO Communications’ fiber assets in first-quarter 2017.

Wireless results

The launch of Verizon Unlimited positively changed the trajectory of customer additions in the quarter. A net decline of 307,000 retail postpaid connections in first-quarter 2017 included 289,000 phone losses. Prior to the launch in mid-February, Verizon had a retail postpaid phone net loss of 398,000; after the launch, Verizon added 109,000 retail postpaid phone connections. For the entire quarter, Verizon added a net of 49,000 smartphones to its retail postpaid phone base.

Verizon’s retail postpaid connections base grew 1.2 percent year over year to 108.5 million, and retail prepaid connections grew 0.5 percent to 5.4 million.

Retail postpaid churn was 1.15 percent in first-quarter 2017, a year-over-year increase of 19 basis points primarily due to increased churn in tablets. Phone customer loyalty remained high, with retail postpaid phone churn of less than 0.90 percent for the eighth consecutive quarter.

Total revenues were $20.9 billion in first-quarter 2017, a decline of 5.1 percent compared with first-quarter 2016, due to decreased overage revenue, lower postpaid customers in the quarter and continued promotional activity.

At the end of first-quarter 2017, approximately 72 percent of postpaid phone customers were on a non-subsidized service pricing plan. The percentage of phone activations on device payment plans remained steady at about 76 percent in first-quarter 2017, compared with about 77 percent in fourth-quarter 2016. Verizon expects this rate to remain consistent in second-quarter 2017. Approximately 48 percent of postpaid phone customers had a device payment plan at the end of first-quarter 2017.

In first-quarter 2017, overall traffic on LTE increased about 57 percent compared with first-quarter 2016, while Verizon extended its lead in the industry’s third-party network performance studies across the country.

Segment operating income in first-quarter 2017 was $7.1 billion, and segment operating income margin on total revenues was 33.9 percent. Segment EBITDA (non-GAAP) totaled $9.4 billion in first-quarter 2017, a year-over-year decrease of 7.5 percent. Segment EBITDA margin on total revenues (non-GAAP) was 45.1 percent, compared with 46.2 percent in first-quarter 2016.

As previously announced, Verizon plans to launch 11 pre-commercial 5G fixed wireless pilots during second-quarter 2017.

Wireline results

Total wireline revenues declined 0.6 percent, to $7.9 billion, comparing first-quarter 2017 with first-quarter 2016. Consistent with recent trends and on a comparable basis (non-GAAP), this decline was 3.2 percent, excluding revenues from XO Communications in first-quarter 2017.

Total Fios revenues grew 4.7 percent, to $2.9 billion, comparing first-quarter 2017 with first-quarter 2016. This supported revenue growth of 0.7 percent in consumer markets and 2.3 percent in business markets.

In first-quarter 2017, Verizon added a net of 35,000 Fios Internet connections and lost a net of 13,000 Fios Video connections. At the end of first-quarter 2017, Verizon had 5.7 million Fios Internet connections and 4.7 million Fios Video connections, year-over-year increases of 3.3 percent and 0.1 percent, respectively.

During the first quarter, Verizon Enterprise Solutions and Verizon Business Markets entered into new agreements or continued work with a number of clients, including Block Institute, the State of Connecticut, Georgetown University, HRC ManorCare and Xplor.

Wireline operating income was $293 million in first-quarter 2017, compared with a loss of $67 million in first-quarter 2016. Segment operating income margin was 3.7 percent in first-quarter 2017. Segment EBITDA (non-GAAP) was $1.8 billion in first-quarter 2017, up 18.3 percent from first-quarter 2016. Segment EBITDA margin (non-GAAP) was 22.7 percent in first-quarter 2017, compared with 19.0 percent in first-quarter 2016.

Outlook and forward-looking items

Verizon expects the following:

Full-year 2017 consolidated revenues, on an organic basis, to be fairly consistent with 2016, with improvement in wireless service revenue and equipment revenue trends; also, full-year 2017 consolidated adjusted EPS trends to be similar to consolidated revenue trends;

-- Consolidated capital spending for 2017 in the range of $16.8 billion to $17.5 billion;

The 2017 effective tax rate to be in the range of 34 percent to 36 percent, excluding impacts from potential tax reform; and

That it is on track for a return by the 2018-2019 timeframe to the company’s credit-rating profile prior to the acquisition of Vodafone’s indirect 45 percent interest in Verizon Wireless in early 2014.

NOTE: See the accompanying schedules and www.verizon.com/about/investors for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York City, has a diverse workforce of 161,000 and generated nearly $126 billion in 2016 revenues. Verizon operates America’s most reliable wireless network, with 113.9 million retail connections nationwide. The company also provides communications and entertainment services over mobile broadband and the nation’s premier all-fiber network, and delivers integrated business solutions to customers worldwide.

VERIZON’S ONLINE MEDIA CENTER: News releases, media contacts and other resources are available at www.verizon.com/about/news/. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Forward-looking statements

In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words "anticipates," "believes," "estimates," "hopes" or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the "SEC"), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and international economies; the effects of competition in the markets in which we operate; material changes in technology or technology substitution; disruption of our key suppliers’ provisioning of products or services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks; breaches of network or information technology security, natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial impact not covered by insurance; our high level of indebtedness; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; the inability to implement our business strategies; and the inability to realize the expected benefits of strategic transactions.

Important additional information and where to find it

On April 10, 2017, Yahoo! Inc. ("Yahoo") filed with the Securities and Exchange Commission (the "SEC") Amendment No. 2 to the preliminary proxy statement regarding the proposed sale of Yahoo’s operating business to Verizon Communications Inc. ("Verizon") and related transactions. Yahoo will file with the SEC a definitive version of the proxy statement, which will be sent or provided to Yahoo stockholders when available. The information contained in the preliminary proxy statement is not complete and may be changed. BEFORE MAKING ANY VOTING DECISION, YAHOO’S STOCKHOLDERS ARE STRONGLY ADVISED TO READ YAHOO’S PROXY STATEMENT IN ITS ENTIRETY (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO WHEN THEY BECOME AVAILABLE) AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTIONS OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTIONS. Investors and stockholders can obtain a free copy of Yahoo’s proxy statement, any amendments or supplements to the proxy statement, and other documents filed by Yahoo with the SEC in connection with the proposed transactions for no charge at the SEC’s website at www.sec.gov, on the Investor Relations page of Yahoo’s website investor.yahoo.net or by writing to Investor Relations, Yahoo! Inc., 701 First Avenue, Sunnyvale, CA 94089.

Yahoo and its directors and executive officers, as well as Verizon and its directors and executive officers, may be deemed participants in the solicitation of proxies from Yahoo’s investors and stockholders in connection with the proposed transactions. Information concerning the ownership of Yahoo securities by Yahoo’s directors and executive officers is included in their SEC filings on Forms 3, 4 and 5, and additional information is also available in Yahoo’s annual report on Form 10-K for the year ended December 31, 2016, as amended, and Yahoo’s proxy statement for its 2016 annual meeting of stockholders filed with the SEC on May 23, 2016. Information about Verizon’s directors and executive officers is set forth in Verizon’s annual report on Form 10-K for the year ended December 31, 2016 and Verizon’s proxy statement for its 2017 annual meeting of stockholders filed with the SEC on March 20, 2017. Information regarding Yahoo’s directors, executive officers and other persons who may, under the rules of the SEC, be considered participants in the solicitation of proxies in connection with the proposed transactions, including their respective interests by security holdings or otherwise, also will be set forth in the definitive proxy statement relating to the proposed transactions when it is filed with the SEC. These documents may be obtained free of charge from the sources indicated above.

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

Verizon Communications Inc.
Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
% Change
Operating Revenues
Service revenues and other
$
26,050
$
28,217
(7.7)
Wireless equipment revenues
3,764
3,954
(4.8)
Total Operating Revenues
29,814
32,171
(7.3)
Operating Expenses
Cost of services
6,858
7,614
(9.9)
Wireless cost of equipment
4,808
4,998
(3.8)
Selling, general and administrative expense
6,908
7,600
(9.1)
Depreciation and amortization expense
4,059
4,017
1.0
Total Operating Expenses
22,633
24,229
(6.6)
Operating Income
7,181
7,942
(9.6)
Equity in losses of unconsolidated businesses
(21)
(20)
(5.0)
Other income and (expense), net
(846)
32
*
Interest expense
(1,132)
(1,188)
4.7
Income Before Provision for Income Taxes
5,182
6,766
(23.4)
Provision for income taxes
(1,629)
(2,336)
30.3
Net Income
$
3,553
$
4,430
(19.8)
Net income attributable to noncontrolling interests
$
103
$
120
(14.2)
Net income attributable to Verizon
3,450
4,310
(20.0)
Net Income
$
3,553
$
4,430
(19.8)
Basic Earnings per Common Share
Net income attributable to Verizon
$
.85 $
1.06 (19.8)
Weighted average number of common shares (in millions)
4,082
4,080
Diluted Earnings per Common Share (1)
Net income attributable to Verizon
$
.84 $
1.06 (20.8)
Weighted average number of common
shares-assuming dilution (in millions)
4,087
4,085
Footnotes:
(1)
Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*
Not meaningful
Verizon Communications Inc.
Condensed Consolidated Balance Sheets
(dollars in millions)
Unaudited
3/31/17
12/31/16
$ Change
Assets
Current assets
Cash and cash equivalents
$
4,307
$
2,880
$
1,427
Accounts receivable, net
16,863
17,513
(650)
Inventories
1,194
1,202
(8)
Assets held for sale
149
882
(733)
Prepaid expenses and other
4,645
3,918
727
Total current assets
27,158
26,395
763
Plant, property and equipment
235,550
232,215
3,335
Less accumulated depreciation
150,337
147,464
2,873
85,213
84,751
462
Investments in unconsolidated businesses
1,080
1,110
(30)
Wireless licenses
87,754
86,673
1,081
Goodwill
27,630
27,205
425
Other intangible assets, net
8,912
8,897
15
Non-current assets held for sale
762
613
149
Other assets
8,222
8,536
(314)
Total Assets
$
246,731
$
244,180
$
2,551
Liabilities and Equity
Current liabilities
Debt maturing within one year
$
3,707
$
2,645
$
1,062
Accounts payable and accrued liabilities 14,826
19,593
(4,767)
Other
8,131
8,102
29
Total current liabilities
26,664
30,340
(3,676)
Long-term debt
112,839
105,433
7,406
Employee benefit obligations
22,079
26,166
(4,087)
Deferred income taxes
47,847
45,964
1,883
Other liabilities
12,265
12,245
20
Equity
Common stock
424
424
-
Contributed capital
11,161
11,182
(21)
Reinvested earnings
16,153
15,059
1,094
Accumulated other comprehensive income
2,609
2,673
(64)
Common stock in treasury, at cost
(7,144)
(7,263)
119
Deferred compensation - employee
stock ownership plans and other
290
449
(159)
Noncontrolling interests
1,544
1,508
36
Total equity
25,037
24,032
1,005
Total Liabilities and Equity
$
246,731
$
244,180
$
2,551
Verizon - Selected Financial and Operating Statistics
Unaudited
3/31/17
12/31/16
Total debt (in millions)
$
116,546
$
108,078
Net debt (in millions)
$
112,239
$
105,198
Net debt / Adjusted EBITDA(1)
2.6x
2.4x
Common shares outstanding end of period (in millions)
4,079
4,077
Total employees (’000)
161.0
160.9
Quarterly cash dividends declared per common share
$
0.5775
$
0.5775
Footnotes:
(1)
Adjusted EBITDA excludes the effects of non-operational items and impact of divested businesses.
Certain reclassifications of prior period amounts have been made, where appropriate, to conform to current period presentation.
Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
$ Change
Cash Flows from Operating Activities
Net Income
$
3,553
$
4,430
$
(877)
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization expense
4,059
4,017
42
Employee retirement benefits
(111)
356
(467)
Deferred income taxes
2,025
167
1,858
Provision for uncollectible accounts
330
353
(23)
Equity in losses of unconsolidated businesses, net of dividends received 28
29
(1)
Changes in current assets and liabilities, net of effects from
acquisition/disposition of businesses
(4,694)
(1,162)
(3,532)
Discretionary contributions to qualified pension plans
(3,411)
-
(3,411)
Other, net
(98)
(693)
595
Net cash provided by operating activities
1,681
7,497
(5,816)
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)
(3,067)
(3,387)
320
Acquisitions of businesses, net of cash acquired
(1,746)
(161)
(1,585)
Acquisitions of wireless licenses
(196)
(131)
(65)
Other, net
176
243
(67)
Net cash used in investing activities
(4,833)
(3,436)
(1,397)
Cash Flows from Financing Activities
Proceeds from long-term borrowings
13,054
-
13,054
Proceeds from asset-backed long-term borrowings
1,283
-
1,283
Repayments of long-term borrowings and capital lease obligations
(5,592)
(376)
(5,216)
Decrease in short-term obligations, excluding current maturities
(52)
(40)
(12)
Dividends paid
(2,354)
(2,302)
(52)
Other, net
(1,760)
33
(1,793)
Net cash provided by (used in) financing activities
4,579
(2,685)
7,264
Increase in cash and cash equivalents
1,427
1,376
51
Cash and cash equivalents, beginning of period
2,880
4,470
(1,590)
Cash and cash equivalents, end of period
$
4,307
$
5,846
$
(1,539)
Footnotes:
Certain reclassifications of prior period amounts have been made, where appropriate, to conform to current period presentation.
Verizon Communications Inc.
Wireless - Selected Financial Results
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
% Change
Operating Revenues
Service
$
15,778
$
16,809
(6.1)
Equipment
3,764
3,954
(4.8)
Other
1,336
1,241
7.7
Total Operating Revenues
20,878
22,004
(5.1)
Operating Expenses
Cost of services
1,958
1,942
0.8
Cost of equipment
4,808
4,998
(3.8)
Selling, general and administrative expense
4,698
4,891
(3.9)
Depreciation and amortization expense
2,338
2,293
2.0
Total Operating Expenses
13,802
14,124
(2.3)
Operating Income
$
7,076 $
7,880 (10.2)
Operating Income Margin
33.9%
35.8%
Segment EBITDA
$
9,414 $
10,173
(7.5)
Segment EBITDA Margin
45.1%
46.2%
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.
Verizon Communications Inc.
Wireless - Selected Operating Statistics
Unaudited
3/31/17
3/31/16
% Change
Connections (’000)
Retail postpaid
108,483
107,171
1.2
Retail prepaid
5,430
5,402
0.5
Total retail
113,913
112,573
1.2
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
% Change
Net Add Detail (’000) (1)
Retail postpaid
(307)
640
*
Retail prepaid
(17)
(177)
90.4
Total retail
(324)
463
*
Account Statistics
Retail Postpaid Accounts (’000) (2)
35,270
35,720
(1.3)
Retail postpaid connections per account (2)
3.08
3.00
2.7
Retail postpaid ARPA(3)
136.98
145.34
(5.8)
Retail postpaid I-ARPA(4)
166.01
165.03
0.6
Churn Detail
Retail postpaid
1.15%
0.96%
Retail
1.39%
1.23%
Retail Postpaid Connection Statistics
Total Smartphone postpaid % of phones activated
94.5%
92.5%
Total Smartphone postpaid phone base (2)
88.1%
84.7%
Total Internet postpaid base (2)
18.3%
17.3%
4G LTE devices as % of retails postpaid connections
85.9%
81.1%
Other Operating Statistics
Capital expenditures (in millions)
$
1,831 $
2,190 (16.4)
Footnotes:
(1)
Connection net additions exclude acquisitions and adjustments.
(2)
Statistics presented as of end of period.
(3)
Retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(4)
Retail postpaid I-ARPA - average service revenue per account from retail postpaid account plus recurring device installment billings.
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.
*
Not meaningful
Verizon Communications Inc.
Wireline - Selected Financial Results
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
% Change
Operating Revenues
Consumer Markets
$
3,201
$
3,180
0.7
Enterprise Solutions
2,466
2,501
(1.4)
Partner Solutions
1,256
1,292
(2.8)
Business Markets
890
870
2.3
Other
63
80
(21.3)
Total Operating Revenues
7,876
7,923
(0.6)
Operating Expenses
Cost of services
4,480
4,644
(3.5)
Selling, general and administrative expense
1,611
1,770
(9.0)
Depreciation and amortization expense
1,492
1,576
(5.3)
Total Operating Expenses
7,583
7,990
(5.1)
Operating Income (Loss)
$
293
$
(67)
*
Operating Income (Loss) Margin
3.7%
(0.8)%
Segment EBITDA
$
1,785
$
1,509
18.3
Segment EBITDA Margin
22.7%
19.0%
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.
*
Not meaningful
Verizon Communications Inc.
Wireline - Selected Operating Statistics
Unaudited
3/31/17
3/31/16
% Change
Connections (’000)
Fios Video Subscribers
4,681
4,678
0.1
Fios Internet Subscribers
5,688
5,508
3.3
Fios Digital voice residence connections
3,887
3,917
(0.8)
Fios Digital connections
14,256
14,103
1.1
HSI
1,323
1,589
(16.7)
Total Broadband connections
7,011
7,097
(1.2)
Primary residence switched access connections
3,095
3,643
(15.0)
Primary residence connections
6,982
7,560
(7.6)
Total retail residence voice connections
7,200
7,824
(8.0)
Total voice connections
13,634
14,781
(7.8)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
% Change
Net Add Detail (’000)
Fios Video Subscribers
(13)
43
*
Fios Internet Subscribers
35
90
(61.1)
Fios Digital voice residence connections
(8)
45
*
Fios Digital connections
14
178
(92.1)
HSI
(62)
(78)
20.5
Total Broadband connections
(27)
12
*
Primary residence switched access connections
(135)
(156)
13.5
Primary residence connections
(143)
(111)
(28.8)
Total retail residence voice connections
(155)
(125)
(24.0)
Total voice connections
(305)
(254)
(20.1)
Revenue Statistics
Fios revenues (in millions)
$
2,891
$
2,761
4.7
Other Operating Statistics
Capital expenditures (in millions)
$
960
$
1,006
(4.6)
Wireline employees (’000)
60.8
59.5
Fios Video Open for Sale (’000)
13,829
13,366
Fios Video penetration
33.8%
35.0%
Fios Internet Open for Sale (’000)
14,120
13,661
Fios Internet penetration
40.3%
40.3%
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of non-operational items and impact of divested businesses, as the Company’s chief operating decision maker excludes these items in assessing business unit performance.
Intersegment transactions have not been eliminated.
*
Not meaningful
Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated Operating Revenues Excluding Divested Businesses and Acquisitions
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
Consolidated Operating Revenues
$
29,814
$
32,171
Less operating revenues from Divested Businesses
-
1,280
Less operating revenues from Acquisitions
318
-
Consolidated Operating Revenues Excluding Divested Businesses and Acquisitions
$
29,496
$
30,891
Year over Year Change
(4.5)%
Operating Revenues from Media Business net of Traffic Acquisition Costs
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
Operating Revenues from Media Business
$
737 $
726
Less TAC
280
249
Operating Revenues from Media Business net of TAC
$
457 $
477
Year over Year Change
(4.2)%
IoT Revenues Excluding Acquisitions
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
IoT Revenues
$
343 $
195
Less IoT revenues from Acquisitions
114
-
IoT Revenues Excluding Acquisitions
$
229 $
195
Year over Year Change
17.4%
Consolidated EBITDA, Consolidated EBITDA Margin and Consolidated Adjusted EBITDA
(dollars in millions)
3 Mos.
3 Mos.
3 Mos.
3 Mos.
3 Mos.
Ended
Ended
Ended
Ended
Ended
Unaudited
3/31/17
12/31/16
9/30/16
6/30/16
3/31/16
Consolidated Net Income
$
3,553
$
4,600 $
3,747 $
831 $
4,430
Add/(subtract):
Provision for income taxes
1,629
2,349
1,829
864
2,336
Interest expense
1,132
1,137
1,038
1,013
1,188
Other (income) and expense, net
846
(98)
(97)
1,826
(32)
Equity in losses of unconsolidated businesses
21
35
23
20
20
Operating Income
7,181
8,023
6,540
4,554
7,942
Add Depreciation and amortization expense
4,059
3,987
3,942
3,982
4,017
Consolidated EBITDA
$
11,240
$
12,010
$
10,482
$
8,536
$
11,959
Add/subtract non-operational items (before tax):
Severance, pension, and benefit charges/(credits)
-
(1,589)
797
3,550
165
Gain on spectrum license transactions
(126)
-
-
-
(142)
Gain on sale of Divested Businesses
-
-
-
(1,007)
-
Divested Businesses
-
-
-
-
(661)
(126)
(1,589)
797
2,543
(638)
Consolidated Adjusted EBITDA
$
11,114
$
10,421
$
11,279
$
11,079
$
11,321
Consolidated Operating Revenues
$
29,814
$
32,171
Consolidated Operating Income Margin
24.1%
Consolidated EBITDA Margin
37.7%
37.2%
Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Net Debt and Net Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited
3/31/17
12/31/16
Verizon Net Debt
Debt maturing within one year
$
3,707
$
2,645
Long-term debt
112,839
105,433
Total Debt
116,546
108,078
Less Cash and cash equivalents
4,307
2,880
Net Debt
$
112,239
$
105,198
Net Debt to Consolidated Adjusted EBITDA Ratio
2.6x
2.4x
Adjusted Earnings per Common Share (Adjusted EPS)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
.
Pre-tax
Tax
After-Tax
Pre-tax
Tax
After-Tax
EPS
$
0.84
$
1.06
Severance, pension, and benefit charges $
-
$
- $
- -
$
165
$
(63)
$
102
0.02
Early debt redemption costs
848
(336)
512
0.13
-
-
-
-
Gain on spectrum license transactions
(126)
49
(77)
(0.02)
(142)
54
(88)
(0.02)
$
722
$
(287)
$
435
0.11
$
23 $
(9) $
14 -
Adjusted EPS
$
0.95
$
1.06
Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Wireless
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
Operating Income
$
7,076
$
7,880
Add Depreciation and amortization expense
2,338
2,293
Segment EBITDA
$
9,414
$
10,173
Year over Year Change
(7.5)%
Total operating revenues
$
20,878
$
22,004
Operating Income Margin
33.9%
35.8%
Segment EBITDA Margin
45.1%
46.2%
Wireline
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
Operating Income (Loss)
$
293 $
(67)
Add Depreciation and amortization expense
1,492
1,576
Segment EBITDA
$
1,785
$
1,509
Year over Year Change
18.3%
Total operating revenues
$
7,876
$
7,923
Operating Income (Loss) Margin
3.7%
(0.8)%
Segment EBITDA Margin
22.7%
19.0%
Wireline Operating Revenues Excluding Acquisition
(dollars in millions)
3 Mos. Ended
3 Mos. Ended
Unaudited
3/31/17
3/31/16
Wireline Operating Revenues
$
7,876
$
7,923
Less Wireline operating revenues from Acquisition
207
-
Wireline Operating Revenues Excluding Acquisition
$
7,669
$
7,923
Year over Year Change
(3.2)%

Related Links

http://www.verizon.com/ https://www.verizonwireless.com/ http://www.verizonenterprise.com/ http://www.verizon.com/about/

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/verizon-1q-results-highlighted-by-strong-wireless-customer-loyalty-network-investment-and-growth-in-new-markets-300442393.html

SOURCE Verizon Communications Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=NY66663&Transmission_Id=201704200730PR_NEWS_USPR_____NY66663&DateId=20170420