We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Verizon Communications Inc | NYSE:VZ | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 39.20 | 0 | 01:00:00 |
NEW YORK, April 21, 2015 /PRNewswire/ --
1Q 2015 HIGHLIGHTS
Consolidated
Wireless
Wireline
Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced first-quarter 2015 results highlighted by customer growth in key wireless and broadband markets, strong earnings and increased cash flow.
"Verizon is off to a strong start in 2015 with another quarter of profitable growth," said Verizon Chairman and CEO Lowell McAdam. "We expanded our base of customers seeking a premium experience, and we grew revenues, earnings and cash flow during a quarter in which we also took significant steps to sharpen our strategic focus. We are confident in our ability to maintain momentum and continue to add value for customers and shareholders."
The company reported $1.02 in EPS in first-quarter 2015, compared with $1.15 per share in first-quarter 2014.
There were no non-operational adjustments to first-quarter 2015 per-share results; first-quarter-2014 results included non-operational gains related to Verizon's acquisition of full ownership of Verizon Wireless in February 2014.
First-quarter 2015 earnings of $1.02 per share compares with 84 cents per share in adjusted EPS (non-GAAP) in first-quarter 2014 – an increase of 21.4 percent.
In first-quarter 2015, Verizon agreed to sell its local wireline operations serving customers in three states to Frontier Communications, monetized wireless tower assets in a transaction with American Tower, and announced an accelerated share-repurchase program to return $5 billion in capital to shareholders. The company also completed the purchase of $10.4 billion in spectrum in the Federal Communications Commission's AWS-3 auction.
Consolidated Margin Expansion and Cash Flow Growth
On a consolidated basis, Verizon generated top-line growth, margin expansion and increased cash flow in first-quarter 2015.
Consolidated Highlights
Verizon Wireless Delivers Quality Customer Growth and Profitability
In first-quarter 2015, Verizon Wireless delivered quality connections growth and strong profitability.
Wireless Financial Highlights
Wireless Operational Highlights
Wireline Consumer Revenue Maintains Consistent Growth
Verizon's wireline segment reported continued strong results for consumer services. Year-over-year quarterly revenues, driven by FiOS fiber-optic broadband services, have now grown by at least 4 percent for the 11th consecutive quarter.
Wireline Financial Highlights
Wireline Operational Highlights
Wireline segment results include operations being sold to Frontier. Verizon's consolidated balance sheet reflects these operations as assets held for sale. Accounting rules require that depreciation expense not be recorded on such assets; accordingly, wireline depreciation expense will be lower in 2015. This produced an EPS benefit of 2 cents per share in first-quarter 2015 and is expected to produce a 3-cent-per-share benefit in subsequent full quarters until the transaction's closing, targeted for first-half 2016.
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, is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, with 108.6 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers worldwide. A Dow 30 company with more than $127 billion in 2014 revenues, Verizon employs a diverse workforce of 176,200. For more information, visit www.verizon.com/news/.
VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts and other information are available at Verizon's online News Center at www.verizon.com/news/. The news releases are 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; and the inability to implement our business strategies.
Verizon Communications Inc. | |||||
Condensed Consolidated Statements of Income | |||||
(dollars in millions, except per share amounts) | |||||
3 Mos. Ended |
3 Mos. Ended |
||||
Unaudited |
3/31/15 |
3/31/14 |
% Change | ||
Operating Revenues |
$ 31,984 |
$ 30,818 |
3.8 | ||
Operating Expenses |
|||||
Cost of services and sales |
12,096 |
11,189 |
8.1 | ||
Selling, general and administrative expense |
7,939 |
8,332 |
(4.7) | ||
Depreciation and amortization expense |
3,989 |
4,137 |
(3.6) | ||
Total Operating Expenses |
24,024 |
23,658 |
1.5 | ||
Operating Income |
7,960 |
7,160 |
11.2 | ||
Equity in earnings (losses) of unconsolidated businesses |
(34) |
1,902 |
* | ||
Other income and (expense), net |
75 |
(894) |
* | ||
Interest expense |
(1,332) |
(1,214) |
9.7 | ||
Income Before Provision for Income Taxes |
6,669 |
6,954 |
(4.1) | ||
Provision for income taxes |
(2,331) |
(968) |
* | ||
Net Income |
$ 4,338 |
$ 5,986 |
(27.5) | ||
Net income attributable to noncontrolling interests |
$ 119 |
$ 2,039 |
(94.2) | ||
Net income attributable to Verizon |
4,219 |
3,947 |
6.9 | ||
Net Income |
$ 4,338 |
$ 5,986 |
(27.5) | ||
Basic Earnings per Common Share |
|||||
Net income attributable to Verizon |
$ 1.03 |
$ 1.15 |
(10.4) | ||
Weighted average number of common shares (in millions) |
4,116 |
3,425 |
|||
Diluted Earnings per Common Share (1) |
|||||
Net income attributable to Verizon |
$ 1.02 |
$ 1.15 |
(11.3) | ||
Weighted average number of common |
|||||
shares-assuming dilution (in millions) |
4,121 |
3,430 |
|||
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. | ||||
Certain reclassifications have been made, where appropriate, to reflect comparable operating results. | |||||
* |
Not meaningful |
Verizon Communications Inc. | ||||||
Condensed Consolidated Balance Sheets | ||||||
(dollars in millions) | ||||||
Unaudited |
3/31/15 |
12/31/14 |
$ Change | |||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ 4,386 |
$ 10,598 |
$ (6,212) | |||
Short-term investments |
547 |
555 |
(8) | |||
Accounts receivable, net |
12,698 |
13,993 |
(1,295) | |||
Inventories |
1,076 |
1,153 |
(77) | |||
Assets held for sale |
893 |
552 |
341 | |||
Prepaid expenses and other |
3,236 |
2,772 |
464 | |||
Total current assets |
22,836 |
29,623 |
(6,787) | |||
Plant, property and equipment |
210,389 |
230,508 |
(20,119) | |||
Less accumulated depreciation |
128,747 |
140,561 |
(11,814) | |||
81,642 |
89,947 |
(8,305) | ||||
Investments in unconsolidated businesses |
762 |
802 |
(40) | |||
Wireless licenses |
75,693 |
75,341 |
352 | |||
Goodwill |
23,303 |
24,639 |
(1,336) | |||
Other intangible assets, net |
5,779 |
5,728 |
51 | |||
Non-current assets held for sale |
9,580 |
- |
9,580 | |||
Deposit for wireless licenses |
10,430 |
921 |
9,509 | |||
Other assets |
5,765 |
5,707 |
58 | |||
Total Assets |
$ 235,790 |
$ 232,708 |
$ 3,082 | |||
Liabilities and Equity |
||||||
Current liabilities |
||||||
Debt maturing within one year |
$ 4,439 |
$ 2,735 |
$ 1,704 | |||
Accounts payable and accrued liabilities |
15,189 |
16,680 |
(1,491) | |||
Liabilities related to assets held for sale |
572 |
- |
572 | |||
Other |
8,513 |
8,649 |
(136) | |||
Total current liabilities |
28,713 |
28,064 |
649 | |||
Long-term debt |
108,949 |
110,536 |
(1,587) | |||
Employee benefit obligations |
33,010 |
33,280 |
(270) | |||
Deferred income taxes |
42,330 |
41,578 |
752 | |||
Non-current liabilities related to assets held for sale |
943 |
- |
943 | |||
Other liabilities |
11,086 |
5,574 |
5,512 | |||
Equity |
||||||
Common stock |
424 |
424 |
- | |||
Contributed capital |
10,391 |
11,155 |
(764) | |||
Reinvested earnings |
4,422 |
2,447 |
1,975 | |||
Accumulated other comprehensive income |
916 |
1,111 |
(195) | |||
Common stock in treasury, at cost |
(7,093) |
(3,263) |
(3,830) | |||
Deferred compensation – employee |
||||||
stock ownership plans and other |
279 |
424 |
(145) | |||
Noncontrolling interests |
1,420 |
1,378 |
42 | |||
Total equity |
10,759 |
13,676 |
(2,917) | |||
Total Liabilities and Equity |
$ 235,790 |
$ 232,708 |
$ 3,082 | |||
Verizon - Selected Financial and Operating Statistics |
||||||
Unaudited |
3/31/15 |
12/31/14 |
||||
Total debt (in millions) |
$ 113,388 |
$ 113,271 |
||||
Net debt (in millions) |
$ 109,002 |
$ 102,673 |
||||
Net debt / Adjusted EBITDA(1) |
2.5x |
2.4x |
||||
Common shares outstanding end of period (in millions) |
4,078 |
4,155 |
||||
Total employees |
176,200 |
177,300 |
||||
Quarterly cash dividends declared per common share |
$ 0.550 |
$ 0.550 |
||||
Footnotes: |
||||||
(1) |
Adjusted EBITDA excludes the effects of non-operational items. | |||||
The unaudited condensed consolidated balance sheets are based on preliminary information. |
Verizon Communications Inc. | ||||||
Condensed Consolidated Statements of Cash Flows | ||||||
(dollars in millions) | ||||||
3 Mos. Ended |
3 Mos. Ended |
|||||
Unaudited |
3/31/15 |
3/31/14 |
$ Change | |||
Cash Flows from Operating Activities |
||||||
Net Income |
$ 4,338 |
$ 5,986 |
$(1,648) | |||
Adjustments to reconcile net income to net cash provided by |
||||||
operating activities: |
||||||
Depreciation and amortization expense |
3,989 |
4,137 |
(148) | |||
Employee retirement benefits |
284 |
281 |
3 | |||
Deferred income taxes |
823 |
(155) |
978 | |||
Provision for uncollectible accounts |
383 |
231 |
152 | |||
Equity in earnings (losses) of unconsolidated businesses, |
44 |
(1,894) |
1,938 | |||
Changes in current assets and liabilities, net of effects from |
||||||
acquisition/disposition of businesses |
(888) |
(1,626) |
738 | |||
Other, net |
1,196 |
179 |
1,017 | |||
Net cash provided by operating activities |
10,169 |
7,139 |
3,030 | |||
Cash Flows from Investing Activities |
||||||
Capital expenditures (including capitalized software) |
(3,665) |
(4,150) |
485 | |||
Acquisitions of investments and businesses, net of cash acquired |
(2) |
(157) |
155 | |||
Acquisitions of wireless licenses |
(9,555) |
(213) |
(9,342) | |||
Other, net |
46 |
(11) |
57 | |||
Net cash used in investing activities |
(13,176) |
(4,531) |
(8,645) | |||
Cash Flows from Financing Activities |
||||||
Proceeds from long-term borrowings |
6,497 |
16,952 |
(10,455) | |||
Repayments of long-term borrowings and capital lease obligations |
(5,576) |
(7,951) |
2,375 | |||
Increase in short-term obligations, excluding current maturities |
482 |
252 |
230 | |||
Dividends paid |
(2,153) |
(1,517) |
(636) | |||
Proceeds from sale of common stock |
- |
34 |
(34) | |||
Purchase of common stock for treasury |
(5,000) |
- |
(5,000) | |||
Acquisition of noncontrolling interest |
- |
(58,886) |
58,886 | |||
Other, net |
2,545 |
(2,113) |
4,658 | |||
Net cash used in financing activities |
(3,205) |
(53,229) |
50,024 | |||
Decrease in cash and cash equivalents |
(6,212) |
(50,621) |
44,409 | |||
Cash and cash equivalents, beginning of period |
10,598 |
53,528 |
(42,930) | |||
Cash and cash equivalents, end of period |
$ 4,386 |
$ 2,907 |
$ 1,479 | |||
Footnotes: |
||||||
Certain reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results. |
Verizon Communications Inc. | ||||||||
Wireless - Selected Financial Results | ||||||||
(dollars in millions) | ||||||||
3 Mos. Ended |
3 Mos. Ended |
|||||||
Unaudited |
3/31/15 |
3/31/14 |
% Change | |||||
Operating Revenues |
||||||||
Retail service |
$ 17,143 |
$ 17,246 |
(0.6) | |||||
Other service |
771 |
741 |
4.0 | |||||
Service |
17,914 |
17,987 |
(0.4) | |||||
Equipment |
3,373 |
1,870 |
80.4 | |||||
Other |
1,041 |
1,022 |
1.9 | |||||
Total Operating Revenues |
22,328 |
20,879 |
6.9 | |||||
Operating Expenses |
||||||||
Cost of services and sales |
6,959 |
5,856 |
18.8 | |||||
Selling, general and administrative expense |
5,369 |
5,644 |
(4.9) | |||||
Depreciation and amortization expense |
2,190 |
2,061 |
6.3 | |||||
Total Operating Expenses |
14,518 |
13,561 |
7.1 | |||||
Operating Income |
$ 7,810 |
$ 7,318 |
6.7 | |||||
Operating Income Margin |
35.0% |
35.0% |
||||||
Segment EBITDA |
$ 10,000 |
$ 9,379 |
6.6 | |||||
Segment EBITDA Margin |
44.8% |
44.9% |
||||||
Segment EBITDA Service Margin |
55.8% |
52.1% |
||||||
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. | ||||||||
Wireless - Selected Operating Statistics | ||||||||
Unaudited |
3/31/15 |
3/31/14 |
% Change | |||||
Connections ('000) |
||||||||
Retail postpaid |
102,637 |
97,273 |
5.5 | |||||
Retail prepaid |
5,945 |
6,057 |
(1.8) | |||||
Retail |
108,582 |
103,330 |
5.1 | |||||
3 Mos. Ended |
3 Mos. Ended |
|||||||
Unaudited |
3/31/15 |
3/31/14 |
% Change | |||||
Net Add Detail ('000) (1) |
||||||||
Retail postpaid |
565 |
539 |
4.8 | |||||
Retail prepaid |
(188) |
10 |
* | |||||
Retail |
377 |
549 |
(31.3) | |||||
Account Statistics |
||||||||
Retail Postpaid Accounts ('000) (2) |
35,516 |
35,061 |
1.3 | |||||
Retail postpaid ARPA |
$ 156.14 |
$ 159.67 |
(2.2) | |||||
Retail postpaid connections per account (2) |
2.89 |
2.77 |
4.3 | |||||
Churn Detail |
||||||||
Retail postpaid |
1.03% |
1.07% |
||||||
Retail |
1.33% |
1.37% |
||||||
Retail Postpaid Connection Statistics |
||||||||
Total Smartphone postpaid % of phones activated |
91.4% |
90.1% |
||||||
Total Smartphone postpaid phone base (2) |
79.9% |
72.3% |
||||||
Total Internet postpaid base (2) |
14.8% |
11.3% |
||||||
Other Operating Statistics |
||||||||
Capital expenditures (in millions) |
$ 2,419 |
$ 2,554 |
(5.3) | |||||
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 |
|||||||
Unaudited |
3/31/15 |
3/31/14 |
% Change | |||||
Operating Revenues |
||||||||
Consumer retail |
$ 3,992 |
$ 3,840 |
4.0 | |||||
Small business |
600 |
624 |
(3.8) | |||||
Mass Markets |
4,592 |
4,464 |
2.9 | |||||
Strategic services |
2,048 |
2,071 |
(1.1) | |||||
Core |
1,215 |
1,400 |
(13.2) | |||||
Global Enterprise |
3,263 |
3,471 |
(6.0) | |||||
Global Wholesale |
1,524 |
1,583 |
(3.7) | |||||
Other |
90 |
144 |
(37.5) | |||||
Total Operating Revenues |
9,469 |
9,662 |
(2.0) | |||||
Operating Expenses |
||||||||
Cost of services and sales |
5,287 |
5,339 |
(1.0) | |||||
Selling, general and administrative expense |
2,031 |
2,149 |
(5.5) | |||||
Depreciation and amortization expense |
1,746 |
2,033 |
(14.1) | |||||
Total Operating Expenses |
9,064 |
9,521 |
(4.8) | |||||
Operating Income |
$ 405 |
$ 141 |
* | |||||
Operating Income Margin |
4.3% |
1.5% |
||||||
Segment EBITDA |
$ 2,151 |
$ 2,174 |
(1.1) | |||||
Segment EBITDA Margin |
22.7% |
22.5% |
||||||
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 |
3/31/15 |
3/31/14 |
% Change | |||||
Connections ('000) |
||||||||
FiOS Video Subscribers |
5,739 |
5,319 |
7.9 | |||||
FiOS Internet Subscribers |
6,749 |
6,170 |
9.4 | |||||
FiOS Digital Voice residence connections |
4,661 |
4,350 |
7.1 | |||||
FiOS Digital connections |
17,149 |
15,839 |
8.3 | |||||
HSI |
2,497 |
2,861 |
(12.7) | |||||
Total Broadband connections |
9,246 |
9,031 |
2.4 | |||||
Primary residence switched access connections |
5,397 |
6,224 |
(13.3) | |||||
Primary residence connections |
10,058 |
10,574 |
(4.9) | |||||
Total retail residence voice connections |
10,457 |
11,048 |
(5.3) | |||||
Total voice connections |
19,475 |
20,733 |
(6.1) | |||||
3 Mos. Ended |
3 Mos. Ended |
|||||||
Unaudited |
3/31/15 |
3/31/14 |
% Change | |||||
Net Add Detail ('000) |
||||||||
FiOS Video Subscribers |
90 |
57 |
57.9 | |||||
FiOS Internet Subscribers |
133 |
98 |
35.7 | |||||
FiOS Digital Voice residence connections |
59 |
102 |
(42.2) | |||||
FiOS Digital connections |
282 |
257 |
9.7 | |||||
HSI |
(92) |
(82) |
12.2 | |||||
Total Broadband connections |
41 |
16 |
* | |||||
Primary residence switched access connections |
(199) |
(257) |
(22.6) | |||||
Primary residence connections |
(140) |
(155) |
(9.7) | |||||
Total retail residence voice connections |
(158) |
(181) |
(12.7) | |||||
Total voice connections |
(320) |
(352) |
(9.1) | |||||
Revenue Statistics |
||||||||
FiOS revenues (in millions) |
$ 3,352 |
$ 3,041 |
10.2 | |||||
Strategic services as a % of total Enterprise revenues |
62.8% |
59.7% |
||||||
Other Operating Statistics |
||||||||
Capital expenditures (in millions) |
$ 1,077 |
$ 1,385 |
(22.2) | |||||
Wireline employees ('000) |
75.5 |
80.9 |
||||||
FiOS Video Open for Sale ('000) |
15,931 |
15,184 |
||||||
FiOS Video penetration |
36.0% |
35.0% |
||||||
FiOS Internet Open for Sale ('000) |
16,264 |
15,530 |
||||||
FiOS Internet penetration |
41.5% |
39.7% |
||||||
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 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/verizon-reports-strong-balanced-results-delivers-customer-earnings-and-cash-flow-growth-in-first-quarter-300068926.html
SOURCE Verizon Communications Inc.
Copyright 2015 PR Newswire
1 Year Verizon Communications Chart |
1 Month Verizon Communications Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions