NEW YORK, April 21, 2015 /PRNewswire/ --
1Q 2015 HIGHLIGHTS
Consolidated
- $1.02 in earnings per share
(EPS), compared with $1.15 per share
and 84 cents in adjusted EPS
(non-GAAP) in 1Q 2014.
Wireless
- 6.9 percent year-over-year increase in total revenues; 35.0
percent operating income margin.
- 55.8 percent segment EBITDA margin on service revenues
(non-GAAP), and 44.8 percent segment EBITDA margin on total
revenues (non-GAAP).
- 565,000 net retail postpaid connections added in the quarter;
low retail postpaid churn of 1.03 percent; 108.6 million total
retail connections; 102.6 million total retail postpaid
connections.
Wireline
- 4.0 percent year-over-year increase in consumer revenues, the
11th consecutive quarter of increases of at least 4 percent.
- 10.2 percent year-over-year increase in FiOS revenues; 133,000
FiOS Internet and 90,000 FiOS Video net additions.
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
- Total operating revenues in first-quarter 2015 were
$32.0 billion, a 3.8 percent increase
compared with first-quarter 2014. Excluding first-quarter 2014
revenues from a business that has since been sold, the comparable
year-over-year growth rate (non-GAAP) would have been 4.2
percent.
- Continued effective cost management drove first-quarter 2015
operating income to $8.0 billion, an
11.2 percent increase compared with first-quarter 2014.
- Consolidated operating income margin was 24.9 percent in
first-quarter 2015, compared with 23.2 percent in first-quarter
2014. Consolidated EBITDA margin (non-GAAP, based on earnings
before interest, taxes, depreciation and amortization) was 37.4
percent in first-quarter 2015, compared with 36.7 percent in
first-quarter 2014.
- Cash flow from operating activities increased to $10.2 billion in first-quarter 2015, compared
with $7.1 billion in first-quarter
2014. The $10.2 billion included a
non-recurring $2.4 billion related to
the monetization of tower assets.
- Excluding the tower-transaction impact, free cash flow
(non-GAAP, cash flow from operations less capital expenditures)
totaled about $4.2 billion in
first-quarter 2015, compared with $3.0
billion in first-quarter 2014. Verizon continues to expect
full-year 2015 capital expenditures to range between $17.5 billion and $18.0 billion.
Verizon Wireless Delivers Quality Customer Growth and
Profitability
In first-quarter 2015, Verizon Wireless delivered quality
connections growth and strong profitability.
Wireless Financial Highlights
- Total revenues were $22.3 billion
in first-quarter 2015, up 6.9 percent year over year. Service
revenues totaled $17.9 billion, down
0.4 percent year over year, while equipment revenues increased
$1.5 billion compared with
first-quarter 2014 as more customers chose Verizon Edge pricing.
This pricing makes it easy to buy a new device with a low upfront
cost and simple monthly installments.
- Service revenues plus Edge installment billings increased 3.1
percent year over year. The percentage of phone activations on the
Edge program was about 39 percent in first-quarter 2015, compared
with about 25 percent in fourth-quarter 2014. The company expects
this percentage, which is currently approaching 50 percent, to
continue to increase.
- In first-quarter 2015, wireless operating income margin was
35.0 percent, flat with last year's first quarter. Segment EBITDA
margin on service revenues was 55.8 percent, compared with 52.1
percent in first-quarter 2014; and segment EBITDA margin on total
revenues was 44.8 percent, similar to a year ago.
Wireless Operational Highlights
- Verizon Wireless had 565,000 retail postpaid net additions in
first-quarter 2015, a 4.8 percent increase compared with
first-quarter 2014. At the end of first-quarter 2015, the company
had 108.6 million retail connections, a 5.1 percent year-over-year
increase, and had 102.6 million retail postpaid connections.
- The company added 621,000 4G smartphones to its customer base
in first-quarter 2015. In light of a net decline in 3G smartphones,
overall smartphone growth totaled 247,000. The company also added
820,000 4G tablets and reported net declines of 385,000 basic
phones and 188,000 prepaid devices in first-quarter 2015.
- 4G devices now constitute approximately 70 percent of the
retail postpaid connections base, up from 49 percent a year ago –
with the 4G LTE network handling about 86 percent of total wireless
data traffic in first-quarter 2015.
- Growth in 4G device adoption continues to drive increased data
and video usage. Within More Everything accounts, average data
usage continues to rise, up 54 percent year over year.
- At 1.03 percent in first-quarter 2015, retail postpaid churn
improved both sequentially and year over year. Retail postpaid
smartphone customer churn was less than 0.9 percent.
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
- In first-quarter 2015, consumer revenues were $4.0 billion, an increase of 4.0 percent compared
with first-quarter 2014, with FiOS revenues representing 78 percent
of the total.
- Total FiOS revenues grew 10.2 percent, to $3.4 billion, comparing first-quarter 2015 with
first-quarter 2014.
- Wireline operating income margin was 4.3 percent in
first-quarter 2015, up from 1.5 percent in first-quarter 2014.
Segment EBITDA margin (non-GAAP) was 22.7 percent in first-quarter
2015, compared with 22.5 percent in first-quarter 2014.
Wireline Operational Highlights
- In first-quarter 2015, Verizon added 133,000 net new FiOS
Internet connections and 90,000 net new FiOS Video connections.
Verizon had totals of 6.7 million FiOS Internet and 5.7 million
FiOS Video connections at the end of the first quarter,
representing year-over-year increases of 9.4 percent and 7.9
percent, respectively.
- FiOS Internet penetration (subscribers as a percentage of
potential subscribers) was 41.5 percent at the end of first-quarter
2015, compared with 39.7 percent at the end of first-quarter 2014.
In the same periods, FiOS Video penetration was 36.0 percent,
compared with 35.0 percent.
- By the end of first-quarter 2015, 62 percent of consumer FiOS
Internet customers subscribed to FiOS Quantum, which provides
speeds ranging from 50 to 500 megabits per second, up from 59
percent at year-end 2014. The highest rate of growth is in the
75-megabit-per-second tier, to which more than 20 percent of FiOS
customers subscribe.
- Broadband connections totaled 9.2 million at the end of
first-quarter 2015, a 2.4 percent year-over-year increase. Net
broadband connections increased by 41,000 in first-quarter 2015, as
FiOS Internet net additions more than offset declines in DSL-based
High Speed Internet connections.
- Verizon continues to replace portions of its residential copper
network with fiber optics to provide customers with a more reliable
and resilient infrastructure, which has proven to increase customer
satisfaction and reduce repair costs. In first-quarter 2015,
Verizon migrated 47,000 customers who had been using copper
connections, toward a full-year goal of 200,000.
- Verizon Enterprise Solutions helped clients around the globe
improve customer experience, drive growth and business performance
and manage risk in the first quarter. The company deployed
innovative enterprise-grade network, cloud, security, Internet of
Things, mobility and other business solutions for some of the
world's leading brands, including Altisource, Cisco, Hallmark Cards
Inc., MiCTA, National DCP LLC, PetSmart Inc., Slomin's Inc., TNT,
Visteon Corporation and The Welsh Government.
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,
net of dividends received
|
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.