NEW YORK, Oct. 20, 2016 /PRNewswire/ --
3Q 2016 highlights
- Consolidated: 89 cents in
earnings per share (EPS); adjusted EPS (non-GAAP) of $1.01, excluding non-operational items related to
pension re-measurement and severance costs.
- Wireless: 442,000 retail postpaid net additions, including
357,000 new 4G LTE smartphones.
- Wireline: 90,000 Fios Internet net additions, 36,000 Fios Video
net additions.
Third-quarter 2016 earnings at Verizon Communications Inc.
(NYSE, Nasdaq: VZ) showed continued strong profitability and
customer loyalty at Verizon Wireless, and renewed customer growth
for Fios fiber-optic services.
The company reported third-quarter 2016 EPS of 89 cents, compared with 99
cents per share in third-quarter 2015.
Adjusted third-quarter 2016 EPS (non-GAAP) of $1.01 excluded 12
cents per share related to mark-to-market pension
re-measurement and severance costs. This compares with adjusted
third-quarter 2015 earnings of $1.04
per share, which excluded 5 cents per
share due to pension re-measurement.
"Verizon continues to deliver strong financial and operational
results in highly competitive markets while positioning itself for
future growth," said Chairman and CEO Lowell McAdam. "While we transform our company
in a challenging environment, we have maintained the financial
flexibility to invest in our industry-leading networks to better
serve customers, add scale to bring innovation to the mobile media
and Internet of Things (IoT) markets, and increase dividends for a
10th consecutive year."
Consolidated results
- Total operating revenues in third-quarter 2016 were
$30.9 billion, a 6.7 percent decrease
compared with third-quarter 2015. Excluding third-quarter 2015
revenues from since-divested local landline businesses, total
operating revenues on a comparable basis (non-GAAP) would have
declined 2.9 percent year over year.
- Cash flows from operations totaled $4.8
billion in third-quarter 2016. Third-quarter 2016 proceeds
of $2.6 billion from asset-backed
securitization transactions, which in prior quarters under the
off-balance-sheet securitization model would have flowed through
cash flow from operations, are reflected in cash flows from
financing.
- Cash taxes were higher compared to a year ago, due primarily to
tax payments of $2.4 billion in
third-quarter 2016 related to the gain on sale of wireline
operations divested earlier this year. Verizon also made a
discretionary pension contribution in third-quarter 2016, bringing
full-year pension funding payments to approximately $750 million.
- Operating income was $6.5 billion
in third-quarter 2016, and operating income margin was 21.1
percent. EBITDA (non-GAAP, earnings before interest, taxes,
depreciation and amortization) totaled $10.5
billion, and the consolidated EBITDA margin (non-GAAP) was
33.9 percent in third-quarter 2016.
In September, Verizon's Board of Directors approved a 2.2
percent dividend increase, the 10th consecutive year with an
increase.
In July, Verizon announced an agreement to acquire Yahoo! and
closed on the acquisition of Telogis, which added to Verizon's
suite of connected vehicle solutions. In August, Verizon announced
an agreement to acquire Fleetmatics, a global provider of fleet and
mobile workforce management solutions, in a transaction expected to
close in fourth-quarter 2016. In September, Verizon announced the
acquisition of Sensity Systems, adding to Verizon's suite of smart
city solutions when the transaction closed in October.
Growth continued in new markets, with strong demand from
advertisers for AOL's expanding programmatic capabilities and
high-quality data analytical tools. Organically, IoT revenues, led
by telematics, increased 24 percent on a comparable basis to
third-quarter 2015, to $217
million.
Maintaining its network leadership, Verizon launched LTE
Advanced in more than 460 markets in third-quarter 2016. The
company is advancing its software-defined network (SDN)
architecture, building a next-generation fiber network in
Boston and aggressively densifying
its nationwide wireless network. Based on the outcome of its
commercial pilot program, Verizon intends to be the first company
to launch a 5G fixed wireless broadband solution in the United States.
Verizon Wireless highlights
- Verizon reported 442,000 retail postpaid net additions in
third-quarter 2016. These net adds exclude wholesale device and
wholesale IoT connections. At the end of third-quarter 2016,
Verizon had 113.7 million retail connections, a 2.6 percent
year-over-year increase. Verizon's industry-leading retail postpaid
connections base grew 3.0 percent to 108.2 million, and retail
prepaid connections totaled 5.5 million.
- Total revenues were $22.1 billion
in third-quarter 2016, a decline of 3.9 percent compared with
third-quarter 2015, as more customers continued to choose
unsubsidized device payment plans. Service revenues plus device
payment plan billings increased 2.3 percent, to $19.3 billion, comparing third-quarter 2016 with
third-quarter 2015.
- The percentage of phone activations on device payment plans was
about 70 percent in third-quarter 2016, compared with about 67
percent in second-quarter 2016. The company expects this percentage
to be around 70 percent in the fourth quarter. About 60 percent of
postpaid phone customers are on an unsubsidized pricing plan, and
Verizon expects to return to year-over-year service revenue growth
by the end of 2017.
- At the end of third-quarter 2016, Verizon Wireless had a total
of about 35.8 million device payment plan phone connections,
representing about 41 percent of the postpaid phone base.
- Segment operating income was $7.6
billion, and segment operating income margin was 34.6
percent. In third-quarter 2016, Verizon Wireless generated
$9.9 billion in segment EBITDA
(non-GAAP), a year-over-year increase of 0.1 percent. Segment
EBITDA margin (non-GAAP) was 44.9 percent, compared with 43.2
percent in third-quarter 2015.
- Customer loyalty remained high. Retail postpaid churn was 1.04
percent in third-quarter 2016, a year-over-year increase of 11
basis points, as strong retention in the phone base was offset by
increased churn in tablets. Retail postpaid phone churn was up 2
basis points year over year and remained below 0.90 percent for the
sixth consecutive quarter.
- The 442,000 retail postpaid net additions in third-quarter 2016
included 357,000 4G LTE smartphones. Net phone additions decreased
sequentially to a loss of 36,000, as the net gain in 4G phones was
offset by a net decline in basic and 3G phones. Tablet net
additions totaled 221,000 in the quarter. All other postpaid net
additions totaled 257,000, primarily due to sales of hum, Verizon's
telematics device.
Wireline highlights
- Total wireline revenue decreased 2.3 percent, to $7.8 billion, comparing third-quarter 2016 with
third-quarter 2015. Retail consumer revenues grew 0.2 percent, to
$3.2 billion, supported by consumer
Fios revenue growth of 4.2 percent.
- Total revenues for Fios services grew 4.4 percent, to
$2.8 billion, comparing third-quarter
2016 with third-quarter 2015. Rebounding from net connection
declines in second-quarter 2016 due to a work stoppage, Verizon
added a net of 90,000 Fios Internet connections and 36,000 Fios
Video connections in third-quarter 2016.
- Fios revenue growth has been driven by a larger customer base,
strong customer loyalty and consumer demand for higher internet
speeds. Approximately 16 percent of the company's Fios Internet
base has opted for speeds of 100 megabits per second or higher,
compared with 11 percent in second-quarter 2016. Customer demand
for Custom TV remains strong and is consistent with prior
quarters.
- Wireline operating income was $156
million in third-quarter 2016, compared with a loss of
$109 million in third-quarter 2015.
Segment EBITDA (non-GAAP) was $1.7
billion in third-quarter 2016, up 10.1 percent from
third-quarter 2015. Segment EBITDA margin (non-GAAP) was 21.2
percent in third-quarter 2016, compared with 18.9 percent in
third-quarter 2015, due to Fios growth and cost management. Verizon
believes it will continue to make progress in expanding wireline
EBITDA margin.
- During the third quarter, Verizon Enterprise Solutions entered
into new agreements or began work with a number of clients,
including The American Red Cross, ADP, CA Technologies, CDK,
Citrix, Colgate-Palmolive Company, Concentrix, ICON Clinical
Research, Juniper Networks, the National Weather Service, PTC,
Sage, Steptoe & Johnson LLP, Vantiv, Inc., Viacom, Virginia
Information Technologies Agency and the French subsidiary of
Allianz Worldwide Partners.
Outlook and forward-looking items
Verizon expects the following:
- 2016 adjusted earnings to be at a level comparable to 2015,
excluding a 7-cent-per-share impact
of the 2016 work stoppage;
- Consolidated adjusted EBITDA margin for 2016 consistent with
full-year 2015;
- Consolidated capital spending for 2016 at the low end of the
range of $17.2 billion to $17.7
billion;
- 2016 effective tax rate to be in the range of 35 percent to 36
percent;
- Organic growth in consolidated revenues for full-year 2017
consistent with GDP growth for that year, with adjusted EPS growth
at normal levels; and
- A return, by 2018-2019, 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 162,000 and generated nearly $132 billion in 2015 revenues. Verizon operates
America's most reliable wireless network, with 113.7 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 September 9, 2016,
Yahoo! Inc. ("Yahoo") filed with the Securities and Exchange
Commission (the "SEC") a preliminary proxy statement regarding the
proposed sale of Yahoo's operating business to Verizon
Communications Inc. ("Verizon") and related transactions, and the
definitive version of which will be sent or provided to Yahoo
stockholders. 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, 2015, 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, 2015 and Verizon's proxy
statement for its 2016 annual meeting of stockholders filed with
the SEC on March 21, 2016.
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
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/16
|
9/30/15
|
%
Change
|
|
9/30/16
|
9/30/15
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
Service revenues and
other
|
$
26,813
|
$
28,866
|
(7.1)
|
|
$
81,858
|
$
85,840
|
(4.6)
|
Wireless equipment
revenues
|
4,124
|
4,292
|
(3.9)
|
|
11,782
|
11,526
|
2.2
|
Total Operating
Revenues
|
30,937
|
33,158
|
(6.7)
|
|
93,640
|
97,366
|
(3.8)
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of
services
|
6,989
|
7,589
|
(7.9)
|
|
22,180
|
21,571
|
2.8
|
Wireless cost of
equipment
|
5,240
|
5,716
|
(8.3)
|
|
14,882
|
16,279
|
(8.6)
|
Selling, general and
administrative expense
|
8,226
|
8,309
|
(1.0)
|
|
25,601
|
24,222
|
5.7
|
Depreciation and
amortization expense
|
3,942
|
4,009
|
(1.7)
|
|
11,941
|
11,978
|
(0.3)
|
Total Operating
Expenses
|
24,397
|
25,623
|
(4.8)
|
|
74,604
|
74,050
|
0.7
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
6,540
|
7,535
|
(13.2)
|
|
19,036
|
23,316
|
(18.4)
|
Equity in losses of
unconsolidated businesses
|
(23)
|
(18)
|
27.8
|
|
(63)
|
(70)
|
(10.0)
|
Other income and
(expense), net
|
97
|
51
|
90.2
|
|
(1,697)
|
158
|
*
|
Interest
expense
|
(1,038)
|
(1,202)
|
(13.6)
|
|
(3,239)
|
(3,742)
|
(13.4)
|
Income Before
Provision for Income Taxes
|
5,576
|
6,366
|
(12.4)
|
|
14,037
|
19,662
|
(28.6)
|
Provision for income
taxes
|
(1,829)
|
(2,195)
|
(16.7)
|
|
(5,029)
|
(6,800)
|
(26.0)
|
Net
Income
|
$
3,747
|
$
4,171
|
(10.2)
|
|
$
9,008
|
$
12,862
|
(30.0)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
$
127
|
$
133
|
(4.5)
|
|
$
376
|
$
374
|
0.5
|
Net income
attributable to Verizon
|
3,620
|
4,038
|
(10.4)
|
|
8,632
|
12,488
|
(30.9)
|
Net
Income
|
$
3,747
|
$
4,171
|
(10.2)
|
|
$
9,008
|
$
12,862
|
(30.0)
|
|
|
|
|
|
|
|
|
|
Basic Earnings per
Common Share
|
|
|
|
|
|
|
|
Net income
attributable to Verizon
|
$
.89
|
$
.99
|
(10.1)
|
|
$
2.12
|
$
3.05
|
(30.5)
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares (in millions)
|
4,079
|
4,072
|
|
|
4,080
|
4,089
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
per Common Share (1)
|
|
|
|
|
|
|
|
Net income
attributable to Verizon
|
$
.89
|
$
.99
|
(10.1)
|
|
$
2.11
|
$
3.05
|
(30.8)
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares-assuming
dilution (in millions)
|
4,086
|
4,078
|
|
|
4,086
|
4,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
9/30/16
|
|
12/31/15
|
|
$ Change
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
6,441
|
|
$
4,470
|
|
$
1,971
|
|
Short-term
investments
|
-
|
|
350
|
|
(350)
|
|
Accounts receivable,
net
|
14,832
|
|
13,457
|
|
1,375
|
|
Inventories
|
1,318
|
|
1,252
|
|
66
|
|
Assets held for
sale
|
-
|
|
792
|
|
(792)
|
|
Prepaid expenses and
other
|
3,030
|
|
2,034
|
|
996
|
Total current
assets
|
25,621
|
|
22,355
|
|
3,266
|
Plant, property and
equipment
|
228,909
|
|
220,163
|
|
8,746
|
|
Less accumulated
depreciation
|
145,495
|
|
136,622
|
|
8,873
|
|
|
83,414
|
|
83,541
|
|
(127)
|
Investments in
unconsolidated businesses
|
1,119
|
|
796
|
|
323
|
Wireless
licenses
|
87,407
|
|
86,575
|
|
832
|
Goodwill
|
25,970
|
|
25,331
|
|
639
|
Other intangible
assets, net
|
7,692
|
|
7,592
|
|
100
|
Non-current assets
held for sale
|
-
|
|
10,267
|
|
(10,267)
|
Other
assets
|
8,275
|
|
7,718
|
|
557
|
Total
Assets
|
$
239,498
|
|
$
244,175
|
|
$
(4,677)
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Debt maturing within
one year
|
$
3,852
|
|
$
6,489
|
|
$
(2,637)
|
|
Accounts payable and
accrued liabilities
|
18,002
|
|
19,362
|
|
(1,360)
|
|
Liabilities related
to assets held for sale
|
-
|
|
463
|
|
(463)
|
|
Other
|
8,444
|
|
8,738
|
|
(294)
|
Total current
liabilities
|
30,298
|
|
35,052
|
|
(4,754)
|
Long-term
debt
|
102,739
|
|
103,240
|
|
(501)
|
Employee benefit
obligations
|
28,285
|
|
29,957
|
|
(1,672)
|
Deferred income
taxes
|
44,617
|
|
45,484
|
|
(867)
|
Non-current
liabilities related to assets held for sale
|
-
|
|
959
|
|
(959)
|
Other
liabilities
|
11,576
|
|
11,641
|
|
(65)
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
424
|
|
424
|
|
-
|
|
Contributed
capital
|
11,179
|
|
11,196
|
|
(17)
|
|
Reinvested
earnings
|
12,918
|
|
11,246
|
|
1,672
|
|
Accumulated other
comprehensive income
|
2,758
|
|
550
|
|
2,208
|
|
Common stock in
treasury, at cost
|
(7,264)
|
|
(7,416)
|
|
152
|
|
Deferred compensation
– employee
|
|
|
|
|
|
|
stock ownership plans
and other
|
445
|
|
428
|
|
17
|
|
Noncontrolling
interests
|
1,523
|
|
1,414
|
|
109
|
Total
equity
|
21,983
|
|
17,842
|
|
4,141
|
Total Liabilities
and Equity
|
$
239,498
|
|
$
244,175
|
|
$
(4,677)
|
Verizon - Selected
Financial and Operating Statistics
|
|
|
|
|
|
Unaudited
|
9/30/16
|
|
12/31/15
|
|
|
|
|
|
Total debt (in
millions)
|
$
106,591
|
|
$
109,729
|
Net debt (in
millions)
|
$
100,150
|
|
$
105,259
|
Net debt / Adjusted
EBITDA(1)
|
2.3x
|
|
2.4x
|
Common shares
outstanding end of period (in millions)
|
4,077
|
|
4,073
|
Total employees
('000)
|
162.0
|
|
177.7
|
Quarterly cash
dividends declared per common share
|
$
0.5775
|
|
$
0.565
|
|
|
|
|
|
Footnotes:
|
|
|
|
(1)
|
Adjusted EBITDA
excludes the effects of non-operational items and Divested
Businesses.
|
Verizon
Communications Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
9 Mos.
Ended
|
|
9 Mos.
Ended
|
|
|
Unaudited
|
9/30/16
|
|
9/30/15
|
|
$ Change
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
Net Income
|
$
9,008
|
|
$
12,862
|
|
$
(3,854)
|
Adjustments to
reconcile net income to net cash provided by
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
11,941
|
|
11,978
|
|
(37)
|
|
Employee retirement
benefits
|
4,531
|
|
1,184
|
|
3,347
|
|
Deferred income
taxes
|
(2,331)
|
|
890
|
|
(3,221)
|
|
Provision for
uncollectible accounts
|
963
|
|
1,136
|
|
(173)
|
|
Equity in losses of
unconsolidated businesses, net of dividends received
|
94
|
|
98
|
|
(4)
|
|
Changes in current
assets and liabilities, net of effects from
|
|
|
|
|
|
|
acquisition/disposition of businesses
|
(4,010)
|
|
1,443
|
|
(5,453)
|
|
Other, net
|
(2,567)
|
|
(1,165)
|
|
(1,402)
|
Net cash provided by
operating activities
|
17,629
|
|
28,426
|
|
(10,797)
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
Capital expenditures
(including capitalized software)
|
(11,398)
|
|
(12,540)
|
|
1,142
|
Acquisitions of
businesses, net of cash acquired
|
(963)
|
|
(3,205)
|
|
2,242
|
Acquisitions of
wireless licenses
|
(410)
|
|
(9,811)
|
|
9,401
|
Proceeds from
dispositions of businesses
|
9,882
|
|
-
|
|
9,882
|
Other, net
|
350
|
|
960
|
|
(610)
|
Net cash used in
investing activities
|
(2,539)
|
|
(24,596)
|
|
22,057
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
Proceeds from
long-term borrowings
|
8,152
|
|
6,497
|
|
1,655
|
Proceeds from
asset-backed long-term borrowings
|
2,594
|
|
-
|
|
2,594
|
Repayments of
long-term borrowings and capital lease obligations
|
(14,510)
|
|
(7,168)
|
|
(7,342)
|
Decrease in
short-term obligations, excluding current maturities
|
(120)
|
|
(305)
|
|
185
|
Dividends
paid
|
(6,908)
|
|
(6,373)
|
|
(535)
|
Proceeds from sale of
common stock
|
3
|
|
31
|
|
(28)
|
Purchase of common
stock for treasury
|
-
|
|
(5,134)
|
|
5,134
|
Other, net
|
(2,330)
|
|
1,899
|
|
(4,229)
|
Net cash used in
financing activities
|
(13,119)
|
|
(10,553)
|
|
(2,566)
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
1,971
|
|
(6,723)
|
|
8,694
|
Cash and cash
equivalents, beginning of period
|
4,470
|
|
10,598
|
|
(6,128)
|
Cash and cash
equivalents, end of period
|
$
6,441
|
|
$
3,875
|
|
$
2,566
|
Verizon
Communications Inc.
|
Wireless - Selected
Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/16
|
9/30/15
|
%
Change
|
|
9/30/16
|
9/30/15
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Service
|
$
16,684
|
$
17,598
|
(5.2)
|
|
$
50,234
|
$
53,201
|
(5.6)
|
|
Equipment
|
4,124
|
4,292
|
(3.9)
|
|
11,782
|
11,526
|
2.2
|
|
Other
|
1,293
|
1,115
|
16.0
|
|
3,793
|
3,219
|
17.8
|
Total Operating
Revenues
|
22,101
|
23,005
|
(3.9)
|
|
65,809
|
67,946
|
(3.1)
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of
services
|
2,006
|
2,010
|
(0.2)
|
|
5,932
|
5,809
|
2.1
|
Cost of
equipment
|
5,240
|
5,716
|
(8.3)
|
|
14,882
|
16,279
|
(8.6)
|
Selling, general and
administrative expense
|
4,921
|
5,351
|
(8.0)
|
|
14,589
|
16,009
|
(8.9)
|
Depreciation and
amortization expense
|
2,287
|
2,260
|
1.2
|
|
6,862
|
6,675
|
2.8
|
Total Operating
Expenses
|
14,454
|
15,337
|
(5.8)
|
|
42,265
|
44,772
|
(5.6)
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
$
7,647
|
$
7,668
|
(0.3)
|
|
$
23,544
|
$
23,174
|
1.6
|
Operating Income
Margin
|
34.6%
|
33.3%
|
|
|
35.8%
|
34.1%
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
$
9,934
|
$
9,928
|
0.1
|
|
$
30,406
|
$
29,849
|
1.9
|
Segment EBITDA
Margin
|
44.9%
|
43.2%
|
|
|
46.2%
|
43.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
9/30/16
|
9/30/15
|
%
Change
|
|
|
|
|
|
|
|
|
|
Connections
('000)
|
|
|
|
|
|
|
|
|
Retail
postpaid
|
|
|
|
|
108,220
|
105,023
|
3.0
|
|
Retail
prepaid
|
|
|
|
|
5,456
|
5,737
|
(4.9)
|
Total
retail
|
|
|
|
|
113,676
|
110,760
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/16
|
9/30/15
|
%
Change
|
|
9/30/16
|
9/30/15
|
%
Change
|
|
|
|
|
|
|
|
|
|
Net Add Detail
('000) (1)
|
|
|
|
|
|
|
|
|
Retail
postpaid
|
442
|
1,289
|
(65.7)
|
|
1,697
|
2,988
|
(43.2)
|
|
Retail
prepaid
|
83
|
(80)
|
*
|
|
(124)
|
(394)
|
(68.5)
|
Total
retail
|
525
|
1,209
|
(56.6)
|
|
1,573
|
2,594
|
(39.4)
|
|
|
|
|
|
|
|
|
|
Account
Statistics
|
|
|
|
|
|
|
|
Retail Postpaid
Accounts ('000) (2)
|
|
|
|
|
35,530
|
35,677
|
(0.4)
|
Retail postpaid
connections per account (2)
|
|
|
|
|
3.05
|
2.94
|
3.7
|
Retail Postpaid ARPA
(3)
|
144.94
|
152.38
|
(4.9)
|
|
145.12
|
154.08
|
(5.8)
|
Retail Postpaid
I-ARPA(4)
|
169.49
|
164.31
|
3.2
|
|
167.23
|
163.37
|
2.4
|
|
|
|
|
|
|
|
|
|
Churn
Detail
|
|
|
|
|
|
|
|
Retail
postpaid
|
1.04%
|
0.93%
|
|
|
0.98%
|
0.95%
|
|
Retail
|
1.28%
|
1.21%
|
|
|
1.23%
|
1.24%
|
|
|
|
|
|
|
|
|
|
|
Retail Postpaid
Connection Statistics
|
|
|
|
|
|
|
|
Total Smartphone
postpaid % of phones activated
|
93.1%
|
91.3%
|
|
|
92.6%
|
91.5%
|
|
Total Smartphone
postpaid phone base (2)
|
|
|
|
|
86.3%
|
82.4%
|
|
Total Internet
postpaid base (2)
|
|
|
|
|
18.1%
|
16.0%
|
|
4G LTE devices as %
of retails postpaid connections
|
|
|
|
|
83.7%
|
76.2%
|
|
|
|
|
|
|
|
|
|
Other Operating
Statistics
|
|
|
|
|
|
|
|
Capital expenditures
(in millions)
|
$
2,771
|
$
2,921
|
(5.1)
|
|
$
7,776
|
$
8,466
|
(8.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/16
|
9/30/15
|
%
Change
|
|
9/30/16
|
9/30/15
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Consumer
retail
|
$
3,174
|
$
3,168
|
0.2
|
|
$
9,519
|
$
9,470
|
0.5
|
|
Small
business
|
411
|
434
|
(5.3)
|
|
1,241
|
1,320
|
(6.0)
|
Mass
Markets
|
3,585
|
3,602
|
(0.5)
|
|
10,760
|
10,790
|
(0.3)
|
|
|
|
|
|
|
|
|
|
Global
Enterprise
|
2,886
|
2,988
|
(3.4)
|
|
8,749
|
9,042
|
(3.2)
|
|
|
|
|
|
|
|
|
|
Global
Wholesale
|
1,239
|
1,289
|
(3.9)
|
|
3,778
|
3,938
|
(4.1)
|
Other
|
77
|
88
|
(12.5)
|
|
246
|
260
|
(5.4)
|
Total Operating
Revenues
|
7,787
|
7,967
|
(2.3)
|
|
23,533
|
24,030
|
(2.1)
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of
services
|
4,440
|
4,695
|
(5.4)
|
|
14,191
|
14,184
|
-
|
Selling, general and
administrative expense
|
1,693
|
1,770
|
(4.4)
|
|
5,080
|
5,421
|
(6.3)
|
Depreciation and
amortization expense
|
1,498
|
1,611
|
(7.0)
|
|
4,636
|
4,953
|
(6.4)
|
Total Operating
Expenses
|
7,631
|
8,076
|
(5.5)
|
|
23,907
|
24,558
|
(2.7)
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
$
156
|
$
(109)
|
*
|
|
$
(374)
|
$
(528)
|
(29.2)
|
Operating Income
(Loss) Margin
|
2.0%
|
(1.4)%
|
|
|
(1.6)%
|
(2.2)%
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
$
1,654
|
$
1,502
|
10.1
|
|
$
4,262
|
$
4,425
|
(3.7)
|
Segment EBITDA
Margin
|
21.2%
|
18.9%
|
|
|
18.1%
|
18.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 to prior period to reflect
comparable operating results in the current period.
|
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
Verizon
Communications Inc.
|
Wireline - Selected
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
9/30/16
|
9/30/15
|
%
Change
|
|
|
|
|
|
|
|
|
|
Connections
('000)
|
|
|
|
|
|
|
|
|
Fios Video
Subscribers
|
|
|
|
|
4,673
|
4,610
|
1.4
|
|
Fios Internet
Subscribers
|
|
|
|
|
5,585
|
5,336
|
4.7
|
|
Fios Digital voice
residence connections
|
|
|
|
|
3,882
|
3,829
|
1.4
|
Fios Digital
connections
|
|
|
|
|
14,140
|
13,775
|
2.6
|
|
|
|
|
|
|
|
|
|
HSI
|
|
|
|
|
1,453
|
1,738
|
(16.4)
|
Total Broadband
connections
|
|
|
|
|
7,038
|
7,074
|
(0.5)
|
Primary residence
switched access connections
|
|
|
|
|
3,359
|
3,951
|
(15.0)
|
Primary residence
connections
|
|
|
|
|
7,241
|
7,780
|
(6.9)
|
|
|
|
|
|
|
|
|
|
Total retail
residence voice connections
|
|
|
|
|
7,482
|
8,072
|
(7.3)
|
Total voice
connections
|
|
|
|
|
14,194
|
15,324
|
(7.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/16
|
9/30/15
|
%
Change
|
|
9/30/16
|
9/30/15
|
%
Change
|
|
|
|
|
|
|
|
|
|
Net Add Detail
('000)
|
|
|
|
|
|
|
|
|
Fios Video
Subscribers
|
36
|
45
|
(20.0)
|
|
38
|
157
|
(75.8)
|
|
Fios Internet
Subscribers
|
90
|
96
|
(6.3)
|
|
167
|
268
|
(37.7)
|
|
Fios Digital voice
residence connections
|
3
|
41
|
(92.7)
|
|
10
|
102
|
(90.2)
|
Fios Digital
connections
|
129
|
182
|
(29.1)
|
|
215
|
527
|
(59.2)
|
|
|
|
|
|
|
|
|
|
HSI
|
(66)
|
(82)
|
(19.5)
|
|
(214)
|
(218)
|
(1.8)
|
Total Broadband
connections
|
24
|
14
|
71.4
|
|
(47)
|
50
|
*
|
Primary residence
switched access connections
|
(142)
|
(162)
|
(12.3)
|
|
(440)
|
(464)
|
(5.2)
|
Primary residence
connections
|
(139)
|
(121)
|
14.9
|
|
(430)
|
(362)
|
18.8
|
|
|
|
|
|
|
|
|
|
Total retail
residence voice connections
|
(152)
|
(137)
|
10.9
|
|
(467)
|
(403)
|
15.9
|
Total voice
connections
|
(282)
|
(262)
|
7.6
|
|
(841)
|
(816)
|
3.1
|
|
|
|
|
|
|
|
|
|
Revenue
Statistics
|
|
|
|
|
|
|
|
Fios revenues (in
millions)
|
$
2,807
|
$
2,689
|
4.4
|
|
$
8,344
|
$
7,969
|
4.7
|
|
|
|
|
|
|
|
|
|
Other Operating
Statistics
|
|
|
|
|
|
|
|
Capital expenditures
(in millions)
|
$
1,036
|
$
1,202
|
(13.8)
|
|
$
2,856
|
$
3,413
|
(16.3)
|
|
|
|
|
|
|
|
|
|
Wireline employees
('000)
|
|
|
|
|
59.2
|
61.8
|
|
Fios Video Open for
Sale ('000)
|
|
|
|
|
13,529
|
13,024
|
|
Fios Video
penetration
|
|
|
|
|
34.5%
|
35.4%
|
|
Fios Internet Open
for Sale ('000)
|
|
|
|
|
13,825
|
13,317
|
|
Fios Internet
penetration
|
|
|
|
|
40.4%
|
40.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
Verizon
Communications Inc.
|
Non-GAAP
Reconciliations - Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Revenues Excluding Divested Businesses
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
Unaudited
|
|
|
|
|
|
|
|
9/30/16
|
9/30/15
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Revenues
|
|
|
|
|
|
|
|
$
30,937
|
$
33,158
|
Less: Operating
revenues from Divested Businesses
|
|
|
|
|
|
|
|
-
|
1,307
|
Consolidated
Operating Revenues Excluding Divested Businesses
|
|
|
|
|
|
|
$
30,937
|
$
31,851
|
Year over Year
Change
|
|
|
|
|
|
|
|
(2.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
EBITDA, Consolidated EBITDA Margin and Consolidated Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
3 Mos.
Ended
|
3 Mos.
Ended
|
3 Mos.
Ended
|
3 Mos.
Ended
|
3 Mos.
Ended
|
Unaudited
|
|
|
9/30/16
|
6/30/16
|
3/31/16
|
12/31/15
|
9/30/15
|
6/30/15
|
3/31/15
|
|
|
|
|
|
|
|
|
|
|
Consolidated
EBITDA
|
|
|
|
|
|
|
|
|
|
Consolidated net
income
|
|
|
$
3,747
|
$
831
|
$
4,430
|
$
5,513
|
$
4,171
|
$
4,353
|
$
4,338
|
Add/subtract:
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
1,829
|
864
|
2,336
|
3,065
|
2,195
|
2,274
|
2,331
|
Interest
expense
|
|
|
1,038
|
1,013
|
1,188
|
1,178
|
1,202
|
1,208
|
1,332
|
Other (income) and
expense, net
|
|
|
(97)
|
1,826
|
(32)
|
(28)
|
(51)
|
(32)
|
(75)
|
Equity in losses of
unconsolidated businesses
|
|
|
23
|
20
|
20
|
16
|
18
|
18
|
34
|
Operating
income
|
|
|
6,540
|
4,554
|
7,942
|
9,744
|
7,535
|
7,821
|
7,960
|
Add Depreciation and
amortization expense
|
|
|
3,942
|
3,982
|
4,017
|
4,039
|
4,009
|
3,980
|
3,989
|
Consolidated
EBITDA
|
|
|
$
10,482
|
$
8,536
|
$
11,959
|
$
13,783
|
$
11,544
|
$
11,801
|
$
11,949
|
|
|
|
|
|
|
|
|
|
|
Add/subtract
non-operational items (before tax):
|
|
|
|
|
|
|
|
|
|
Severance costs,
pension and benefit remeasurements
|
|
|
797
|
3,550
|
165
|
(2,598)
|
342
|
-
|
-
|
Gain on spectrum
license transactions
|
|
|
-
|
-
|
(142)
|
(254)
|
-
|
-
|
-
|
Divested
Businesses
|
|
|
-
|
-
|
(661)
|
(709)
|
(717)
|
(741)
|
(739)
|
Gain on sale of
Divested Businesses
|
|
|
-
|
(1,007)
|
-
|
-
|
-
|
-
|
-
|
|
|
|
797
|
2,543
|
(638)
|
(3,561)
|
(375)
|
(741)
|
(739)
|
Consolidated
Adjusted EBITDA
|
|
|
$
11,279
|
$
11,079
|
$
11,321
|
$
10,222
|
$
11,169
|
$
11,060
|
$
11,210
|
Consolidated
Operating Income Margin
|
|
|
21.1%
|
|
|
|
22.7%
|
|
|
Consolidated
EBITDA Margin
|
|
|
33.9%
|
|
|
|
34.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt and Net
Debt to Consolidated Adjusted EBITDA Ratio
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
Unaudited
|
|
|
|
|
|
|
|
9/30/16
|
12/31/15
|
|
|
|
|
|
|
|
|
|
|
Net
Debt
|
|
|
|
|
|
|
|
|
|
Debt maturing within
one year
|
|
|
|
|
|
|
|
$
3,852
|
$
6,489
|
Long-term
debt
|
|
|
|
|
|
|
|
102,739
|
103,240
|
Total
Debt
|
|
|
|
|
|
|
|
106,591
|
109,729
|
Less Cash and cash
equivalents
|
|
|
|
|
|
|
|
6,441
|
4,470
|
Net
Debt
|
|
|
|
|
|
|
|
$
100,150
|
$
105,259
|
Net Debt to
Consolidated Adjusted EBITDA Ratio
|
|
|
|
|
|
|
|
2.3x
|
2.4x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
per Common Share (Adjusted EPS)
|
|
(dollars in millions
except EPS)
|
|
|
|
|
|
3
Mos.
|
|
|
|
3
Mos.
|
|
|
|
|
|
Ended
|
|
|
|
Ended
|
Unaudited
|
|
|
|
|
9/30/16
|
|
|
|
9/30/15
|
.
|
|
Pre-tax
|
Tax
|
After-Tax
|
|
Pre-tax
|
Tax
|
After-Tax
|
|
EPS
|
|
|
|
|
$
0.89
|
|
|
|
$
0.99
|
|
|
|
|
|
|
|
|
|
|
Pension and benefit
remeasurements
|
|
$
555
|
$
(200)
|
$
355
|
0.09
|
$
342
|
$
(129)
|
$
213
|
0.05
|
Severance
costs
|
|
242
|
(95)
|
147
|
0.04
|
-
|
-
|
-
|
-
|
|
|
$
797
|
$
(295)
|
$
502
|
0.12
|
$
342
|
$
(129)
|
$
213
|
0.05
|
Adjusted EPS
(1)
|
|
|
|
|
$
1.01
|
|
|
|
$
1.04
|
|
|
|
|
|
|
|
|
|
|
(1) EPS may not add
due to rounding.
|
|
|
|
|
|
|
|
|
|
Verizon
Communications Inc.
|
Non-GAAP
Reconciliations - Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
|
|
|
(dollars in
millions)
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
Unaudited
|
|
9/30/16
|
9/30/15
|
|
9/30/16
|
9/30/15
|
|
|
|
|
|
|
|
Segment EBITDA and
EBITDA Margin
|
|
|
|
|
|
|
Operating
Income
|
|
$
7,647
|
$
7,668
|
|
$
23,544
|
$
23,174
|
Add Depreciation and
amortization expense
|
|
2,287
|
2,260
|
|
6,862
|
6,675
|
Segment
EBITDA
|
|
$
9,934
|
$
9,928
|
|
$
30,406
|
$
29,849
|
|
|
|
|
|
|
|
Total operating
revenues
|
|
$
22,101
|
$
23,005
|
|
$
65,809
|
$
67,946
|
|
|
|
|
|
|
|
Operating Income
Margin
|
|
34.6%
|
33.3%
|
|
35.8%
|
34.1%
|
Segment EBITDA
Margin
|
|
44.9%
|
43.2%
|
|
46.2%
|
43.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireline
|
|
|
|
|
|
(dollars in
millions)
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
Unaudited
|
|
9/30/16
|
9/30/15
|
|
9/30/16
|
9/30/15
|
|
|
|
|
|
|
|
Segment EBITDA and
EBITDA Margin
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
$
156
|
$
(109)
|
|
$
(374)
|
$
(528)
|
Add Depreciation and
amortization expense
|
|
1,498
|
1,611
|
|
4,636
|
4,953
|
Segment
EBITDA
|
|
$
1,654
|
$
1,502
|
|
$
4,262
|
$
4,425
|
|
|
|
|
|
|
|
Total operating
revenues
|
|
$
7,787
|
$
7,967
|
|
$
23,533
|
$
24,030
|
|
|
|
|
|
|
|
Operating Income
(Loss) Margin
|
|
2.0%
|
(1.4)%
|
|
(1.6)%
|
(2.2)%
|
Segment EBITDA
Margin
|
|
21.2%
|
18.9%
|
|
18.1%
|
18.4%
|
|
|
|
|
|
|
|
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SOURCE Verizon Communications Inc.