NEW YORK, Oct. 21, 2014 /PRNewswire/ --
3Q 2014 HIGHLIGHTS
Consolidated
- 89 cents in earnings per share
(EPS), compared with 78 cents per
share (or 77 cents on a non-GAAP
adjusted basis) in 3Q 2013.
Wireless
- Added 1.5 million net retail connections; retail postpaid churn
of 1.00 percent; 106.2 million total retail connections; 100.1
million total retail postpaid connections.
- 4.8 percent year-over-year increase in service revenues; 4.6
percent year-over-year increase in retail service revenues; 31.9
percent operating income margin; 49.5 percent segment EBITDA margin
on service revenues (non-GAAP).
Wireline
- 4.5 percent year-over-year increase in consumer revenues, the
ninth consecutive quarter of more than 4 percent growth; consumer
ARPU (average revenue per user) up 10.3 percent.
- 13.4 percent year-over-year increase in FiOS revenues; 162,000
FiOS Internet and 114,000 FiOS Video net additions.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported
double-digit year-over-year percentage growth in reported and
adjusted earnings per share for the 10th time in the past 11
quarters.
The company posted another strong quarter of Verizon Wireless
connections growth and profitability, and customer growth for FiOS
fiber-optic services.
Chairman and CEO Lowell McAdam
said: "We have great confidence heading into the fourth quarter, as
Verizon continues to deliver consistently strong operating and
financial results. We see continued, healthy customer demand for
wireless and broadband services, and we are encouraged by the
growth we are starting to see in the areas of video delivery and
machine-to-machine. Our cash generation remains strong, and last
month we were pleased to announce board approval of a quarterly
dividend increase for the eighth consecutive year."
Verizon reported 89 cents in EPS
in third-quarter 2014, compared with 78
cents per share in third-quarter 2013. No special items
impacted third-quarter 2014 earnings. Third-quarter 2013 results
included a non-operational net gain of 1
cent per share.
The 89 cents in EPS in
third-quarter 2014 is a 15.6 percent increase compared with
77 cents per share on an adjusted
basis (non-GAAP) in third-quarter 2013.
Consolidated Highlights
- Total operating revenues in third-quarter 2014 were
$31.6 billion, a 4.3 percent increase
compared with third-quarter 2013. Excluding third-quarter 2013
revenues of the public sector business Verizon divested at the
beginning of third-quarter 2014, the comparable growth rate
(non-GAAP) would have been 4.9 percent.
- Capital expenditures totaled $12.6
billion through the first nine months of 2014, up 6.9
percent year over year. Verizon projects capital spending of around
$17 billion for full-year 2014, with
consistent wireless capital spending throughout the year to stay
ahead of customer demand by adding capacity to optimize the
company's 4G LTE network.
- Verizon continues to target consolidated top-line growth of 4
percent in 2014. For the full year, results for consolidated
adjusted and wireless segment EBITDA service margin (non-GAAP,
based on earnings before interest, taxes, depreciation and
amortization) will be dependent on fourth-quarter volumes and
installment take rates. Wireline segment EBITDA margin remains on
track to expand on a full-year basis.
- New revenue streams from machine-to-machine and telematics
totaled $150 million in third-quarter
2014 – or more than $400 million
through the first nine months of 2014, an increase of more than 40
percent year to date.
Verizon Wireless Delivers Strong Customer Additions and
Profitability
In third-quarter 2014, Verizon Wireless delivered strong growth
in retail postpaid net connections, a high number of tablet
additions, an increase in smartphone penetration and continued high
segment EBITDA margin on service revenues (non-GAAP).
Wireless Financial Highlights
- Total revenues were $21.8 billion
in third-quarter 2014, up 7.0 percent year over year. Service
revenues in the quarter totaled $18.4
billion, up 4.8 percent year over year. Retail service
revenues grew 4.6 percent year over year, to $17.6 billion.
- Retail postpaid ARPA (average revenue per account) increased
3.5 percent over third-quarter 2013, to $161.24 per month.
- In third-quarter 2014, wireless operating income margin was
31.9 percent and segment EBITDA margin on service revenues was 49.5
percent. This compares with 33.8 percent and 51.1 percent,
respectively, in third-quarter 2013.
Wireless Operational Highlights
- Verizon Wireless added 1.53 million retail net connections,
including 1.52 million retail postpaid connections, in the third
quarter. These additions exclude acquisitions and adjustments.
- At the end of the third quarter, the company had 106.2 million
retail connections. This includes 100.1 million retail postpaid
connections, a 5.2 percent increase year over year.
- Verizon Wireless had 35.4 million retail postpaid accounts at
the end of the third quarter, up 1.3 percent over third-quarter
2013, and 2.82 connections per account, up 3.7 percent year over
year.
- During third-quarter 2014, the company added 457,000 postpaid
phones and 1.1 million postpaid tablets. At the end of the quarter,
smartphones accounted for 77 percent of the Verizon Wireless retail
postpaid customer phone base, up from 75 percent at the end of
second-quarter 2014.
- Retail postpaid churn was 1.00 percent in the third quarter, an
increase of 6 basis points sequentially and 3 basis points year
over year. Retail churn was 1.29 percent in the third quarter, up 4
basis points sequentially and 1 basis point year over year.
- The company continued to enhance its 4G LTE device lineup. In
the third quarter, Verizon Wireless launched the HTC One Remix, LG
G Vista, Kyocera Brigadier, HTC One (M8) for Windows, Apple iPhone
6 and 6 Plus and New Moto X smartphones; the Verizon Jetpack 4G LTE
Mobile Hotspot MiFi 6620L, and Samsung Galaxy Tab 4 (10.1) and Tab
S 10.5 tablets.
- During the third quarter, Verizon Wireless continued to add
capacity to its 4G LTE network, the largest in the United States, using AWS-1 spectrum. This
additional bandwidth, called XLTE, is now available in more than
400 markets across the country.
Wireline Consumer Revenue Growth Remains Strong
Verizon's wireline segment reported continued strong results for
consumer services, where year-over-year quarterly revenues now have
grown by more than 4 percent for nine consecutive quarters.
Wireline Financial Highlights
- Total revenues were $9.6 billion
in third-quarter 2014, down 0.8 percent year over year. Consumer
revenues were $3.9 billion, up 4.5
percent compared with third-quarter 2013, with FiOS revenues
representing 76 percent of the total. Consumer ARPU for wireline
services increased to $125.32 per
month in third-quarter 2014, up 10.3 percent compared with
third-quarter 2013.
- Total FiOS revenues grew 13.4 percent, to $3.2 billion, comparing third-quarter 2014 with
third-quarter 2013.
- Wireline operating income margin was 2.3 percent in
third-quarter 2014, up from 1.5 percent in third-quarter 2013.
Segment EBITDA margin (non-GAAP) was 23.0 percent in third-quarter
2014, flat compared with third-quarter 2013.
- Sales of strategic services to enterprise customers increased
1.0 percent, to $2.1 billion,
compared with third-quarter 2013. Strategic services include
private IP, Ethernet, data center, cloud, security and managed
services.
Wireline Operational Highlights
- In third-quarter 2014, Verizon added 162,000 net new FiOS
Internet connections and 114,000 net new FiOS Video connections.
Verizon had totals of 6.5 million FiOS Internet and 5.5 million
FiOS Video connections at the end of the third quarter,
representing year-over-year increases of 8.8 percent and 7.0
percent, respectively.
- FiOS Internet penetration (subscribers as a percentage of
potential subscribers) was 40.6 percent at the end of third-quarter
2014, compared with 39.2 percent at the end of third-quarter 2013.
In the same periods, FiOS Video penetration was 35.5 percent,
compared with 34.9 percent. The FiOS network passed 19.7 million
premises by the end of third-quarter 2014.
- By the end of third-quarter 2014, 57 percent of consumer FiOS
Internet customers subscribed to FiOS Quantum, which provides
speeds ranging from 50 to 500 megabits per second, up from 55
percent at the end of second-quarter 2014.
- As of this week, nearly 5 million FiOS customers have already
been upgraded to SpeedMatch upload speeds that mirror download
speeds. This upgrade, at no additional customer cost, helps
distinguish the benefits of fiber-based broadband.
- Broadband connections totaled 9.1 million at the end of
third-quarter 2014, a 1.7 percent year-over-year increase. Net
broadband connections increased by 69,000 in third-quarter 2014, as
FiOS Internet net additions more than offset declines in DSL-based
High Speed Internet connections.
- Verizon has been replacing high-maintenance portions of its
residential copper network with fiber optics to provide customers
with more resilient infrastructure and reduce repairs, which
improves customer satisfaction and reduces costs. In third-quarter
2014, Verizon migrated an additional 55,000 customers to fiber,
bringing the year-to-date total to around 200,000.
- In the third quarter, Verizon Enterprise Solutions began
deploying innovative enterprise-grade network, cloud, security,
mobility and other technology solutions for some of the world's
strongest brands: healthcare clients CVS Health, Carestream Health
and Atlantic Health System; public sector customers such as the
Australian Taxation Office, Australian Department of Foreign
Affairs, California Department of Transportation (Caltrans) and
Corporation for Education Initiatives in California (CENIC); and industry leaders such
as Avianet, Dun & Bradstreet, Property Exchange Australia
(PEXA), Telerx, TruGreen and Vanguard Logistics Services
(USA), Inc.
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 more than 106 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 in
more than 150 countries. A Dow 30 company with more than
$120 billion in 2013 revenues,
Verizon employs a diverse workforce of 178,500. 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: the ability to realize the expected
benefits of our transaction with Vodafone in the timeframe expected
or at all; 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;
significantly increased levels of indebtedness as a result of the
Vodafone transaction; changes in tax laws or treaties, or in their
interpretation; adverse conditions in the U.S. and international
economies; material adverse changes in labor matters, including
labor negotiations, and any resulting financial and/or operational
impact; 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; the effects of competition in the markets in
which we operate; 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; significant increases in benefit
plan costs or lower investment returns on plan assets; 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
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/14
|
9/30/13
|
%
Change
|
|
9/30/14
|
9/30/13
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
$ 31,586
|
$ 30,279
|
4.3
|
|
$ 93,887
|
$ 89,485
|
4.9
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of services and
sales
|
12,252
|
10,960
|
11.8
|
|
35,528
|
32,925
|
7.9
|
Selling, general and
administrative expense
|
8,277
|
8,037
|
3.0
|
|
24,159
|
24,232
|
(0.3)
|
Depreciation and
amortization expense
|
4,167
|
4,154
|
0.3
|
|
12,465
|
12,423
|
0.3
|
Total Operating
Expenses
|
24,696
|
23,151
|
6.7
|
|
72,152
|
69,580
|
3.7
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
6,890
|
7,128
|
(3.3)
|
|
21,735
|
19,905
|
9.2
|
Equity in earnings
(losses) of unconsolidated businesses
|
(48)
|
19
|
*
|
|
1,811
|
134
|
*
|
Other income and
(expense), net
|
71
|
20
|
*
|
|
(757)
|
84
|
*
|
Interest
expense
|
(1,255)
|
(555)
|
*
|
|
(3,633)
|
(1,606)
|
*
|
Income Before
Provision for Income Taxes
|
5,658
|
6,612
|
(14.4)
|
|
19,156
|
18,517
|
3.5
|
Provision for income
taxes
|
(1,864)
|
(1,034)
|
80.3
|
|
(5,052)
|
(2,886)
|
75.1
|
Net
Income
|
$ 3,794
|
$ 5,578
|
(32.0)
|
|
$ 14,104
|
$ 15,631
|
(9.8)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
$ 99
|
$ 3,346
|
(97.0)
|
|
$ 2,248
|
$ 9,201
|
(75.6)
|
Net income
attributable to Verizon
|
3,695
|
2,232
|
65.5
|
|
11,856
|
6,430
|
84.4
|
Net
Income
|
$ 3,794
|
$ 5,578
|
(32.0)
|
|
$ 14,104
|
$ 15,631
|
(9.8)
|
|
|
|
|
|
|
|
|
|
Basic Earnings per
Common Share
|
|
|
|
|
|
|
|
Net income
attributable to Verizon
|
$ .89
|
$
.78
|
14.1
|
|
$
3.03
|
$
2.24
|
35.3
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares (in millions)
|
4,152
|
2,866
|
|
|
3,912
|
2,866
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
per Common Share (1)
|
|
|
|
|
|
|
|
Net income
attributable to Verizon
|
$ .89
|
$
.78
|
14.1
|
|
$
3.03
|
$
2.24
|
35.3
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares-assuming
dilution (in millions)
|
4,159
|
2,874
|
|
|
3,919
|
2,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
9/30/14
|
|
12/31/13
|
|
$ Change
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 7,218
|
|
$ 53,528
|
|
$
(46,310)
|
|
Short-term
investments
|
635
|
|
601
|
|
34
|
|
Accounts receivable,
net
|
13,283
|
|
12,439
|
|
844
|
|
Inventories
|
1,206
|
|
1,020
|
|
186
|
|
Prepaid expenses and
other
|
2,431
|
|
3,406
|
|
(975)
|
Total current
assets
|
24,773
|
|
70,994
|
|
(46,221)
|
Plant, property and
equipment
|
230,452
|
|
220,865
|
|
9,587
|
|
Less accumulated
depreciation
|
140,520
|
|
131,909
|
|
8,611
|
|
|
89,932
|
|
88,956
|
|
976
|
Investments in
unconsolidated businesses
|
818
|
|
3,432
|
|
(2,614)
|
Wireless
licenses
|
75,303
|
|
75,747
|
|
(444)
|
Goodwill
|
24,617
|
|
24,634
|
|
(17)
|
Other intangible
assets, net
|
5,738
|
|
5,800
|
|
(62)
|
Other
assets
|
5,112
|
|
4,535
|
|
577
|
Total
Assets
|
$ 226,293
|
|
$ 274,098
|
|
$
(47,805)
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Debt maturing within
one year
|
$ 1,603
|
|
$ 3,933
|
|
$
(2,330)
|
|
Accounts payable and
accrued liabilities
|
17,055
|
|
16,453
|
|
602
|
|
Other
|
8,231
|
|
6,664
|
|
1,567
|
Total current
liabilities
|
26,889
|
|
27,050
|
|
(161)
|
Long-term
debt
|
107,627
|
|
89,658
|
|
17,969
|
Employee benefit
obligations
|
25,770
|
|
27,682
|
|
(1,912)
|
Deferred income
taxes
|
42,289
|
|
28,639
|
|
13,650
|
Other
liabilities
|
5,750
|
|
5,653
|
|
97
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
424
|
|
297
|
|
127
|
|
Contributed
capital
|
11,089
|
|
37,939
|
|
(26,850)
|
|
Reinvested
earnings
|
6,964
|
|
1,782
|
|
5,182
|
|
Accumulated other
comprehensive income
|
1,175
|
|
2,358
|
|
(1,183)
|
|
Common stock in
treasury, at cost
|
(3,465)
|
|
(3,961)
|
|
496
|
|
Deferred compensation
– employee
|
|
|
|
|
|
|
stock ownership plans
and other
|
390
|
|
421
|
|
(31)
|
|
Noncontrolling
interests
|
1,391
|
|
56,580
|
|
(55,189)
|
Total
equity
|
17,968
|
|
95,416
|
|
(77,448)
|
Total Liabilities
and Equity
|
$ 226,293
|
|
$ 274,098
|
|
$
(47,805)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Verizon - Selected
Financial and Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
9/30/14
|
|
12/31/13
|
|
|
|
|
|
|
|
|
|
Total debt (in
millions)
|
$ 109,230
|
|
$ 93,591
|
|
|
Net debt (in
millions)
|
$ 102,012
|
|
$ 40,063
|
|
|
Net debt / Adjusted
EBITDA(1)
|
2.3x
|
|
1.0x
|
|
|
Common shares
outstanding end of period (in millions)
|
4,150
|
|
2,862
|
|
|
Total
employees
|
178,500
|
|
176,800
|
|
|
Quarterly cash
dividends declared per common share
|
$ 0.550
|
|
$ 0.530
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
9 Mos.
Ended
|
|
9 Mos.
Ended
|
|
|
Unaudited
|
9/30/14
|
|
9/30/13
|
|
$ Change
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
Net Income
|
$ 14,104
|
|
$ 15,631
|
|
$ (1,527)
|
Adjustments to
reconcile net income to net cash provided by
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
12,465
|
|
12,423
|
|
42
|
|
Employee retirement
benefits
|
843
|
|
649
|
|
194
|
|
Deferred income
taxes
|
914
|
|
3,011
|
|
(2,097)
|
|
Provision for
uncollectible accounts
|
684
|
|
746
|
|
(62)
|
|
Equity in earnings of
unconsolidated businesses, net of dividends received
|
(1,785)
|
|
(100)
|
|
(1,685)
|
|
Changes in current
assets and liabilities, net of effects from
|
|
|
|
|
|
|
acquisition/disposition of businesses
|
(816)
|
|
(1,078)
|
|
262
|
|
Other, net
|
(3,252)
|
|
(2,895)
|
|
(357)
|
Net cash provided by
operating activities
|
23,157
|
|
28,387
|
|
(5,230)
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
Capital expenditures
(including capitalized software)
|
(12,624)
|
|
(11,807)
|
|
(817)
|
Acquisitions of
investments and businesses, net of cash acquired
|
(180)
|
|
(81)
|
|
(99)
|
Acquisitions of
wireless licenses
|
(343)
|
|
(430)
|
|
87
|
Proceeds from
dispositions of wireless licenses
|
2,367
|
|
2,111
|
|
256
|
Proceeds from
dispositions of businesses
|
120
|
|
-
|
|
120
|
Other, net
|
230
|
|
184
|
|
46
|
Net cash used in
investing activities
|
(10,430)
|
|
(10,023)
|
|
(407)
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
Proceeds from
long-term borrowings
|
21,575
|
|
49,166
|
|
(27,591)
|
Repayments of
long-term borrowings and capital lease obligations
|
(12,594)
|
|
(2,392)
|
|
(10,202)
|
Decrease in
short-term obligations, excluding current maturities
|
(426)
|
|
(324)
|
|
(102)
|
Dividends
paid
|
(5,653)
|
|
(4,420)
|
|
(1,233)
|
Proceeds from sale of
common stock
|
34
|
|
76
|
|
(42)
|
Purchase of common
stock for treasury
|
-
|
|
(153)
|
|
153
|
Special distribution
to noncontrolling interest
|
-
|
|
(3,150)
|
|
3,150
|
Acquisition of
noncontrolling interest
|
(58,886)
|
|
-
|
|
(58,886)
|
Other, net
|
(3,087)
|
|
(3,550)
|
|
463
|
Net cash provided by
(used in) financing activities
|
(59,037)
|
|
35,253
|
|
(94,290)
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
(46,310)
|
|
53,617
|
|
(99,927)
|
Cash and cash
equivalents, beginning of period
|
53,528
|
|
3,093
|
|
50,435
|
Cash and cash
equivalents, end of period
|
$ 7,218
|
|
$ 56,710
|
|
$(49,492)
|
|
|
|
|
|
|
|
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
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/14
|
9/30/13
|
%
Change
|
|
9/30/14
|
9/30/13
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Retail
service
|
$ 17,556
|
$ 16,776
|
4.6
|
|
$ 52,090
|
$ 49,367
|
5.5
|
|
Other
service
|
800
|
740
|
8.1
|
|
2,331
|
1,955
|
19.2
|
Service
|
18,356
|
17,516
|
4.8
|
|
54,421
|
51,322
|
6.0
|
|
|
|
|
|
|
|
|
|
Equipment
|
2,480
|
1,924
|
28.9
|
|
6,737
|
5,690
|
18.4
|
Other
|
999
|
959
|
4.2
|
|
3,039
|
2,886
|
5.3
|
Total Operating
Revenues
|
21,835
|
20,399
|
7.0
|
|
64,197
|
59,898
|
7.2
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of services and
sales
|
7,043
|
5,652
|
24.6
|
|
19,641
|
17,102
|
14.8
|
Selling, general and
administrative expense
|
5,698
|
5,801
|
(1.8)
|
|
16,991
|
16,915
|
0.4
|
Depreciation and
amortization expense
|
2,139
|
2,060
|
3.8
|
|
6,307
|
6,113
|
3.2
|
Total Operating
Expenses
|
14,880
|
13,513
|
10.1
|
|
42,939
|
40,130
|
7.0
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
$ 6,955
|
$ 6,886
|
1.0
|
|
$ 21,258
|
$ 19,768
|
7.5
|
Operating Income
Margin
|
31.9%
|
33.8%
|
|
|
33.1%
|
33.0%
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
$ 9,094
|
$ 8,946
|
1.7
|
|
$ 27,565
|
$ 25,881
|
6.5
|
Segment EBITDA
Service Margin
|
49.5%
|
51.1%
|
|
|
50.7%
|
50.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, where appropriate, to reflect
comparable operating results.
|
Verizon
Communications Inc.
|
Wireless - Selected
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
9/30/14
|
9/30/13
|
%
Change
|
|
|
|
|
|
|
Connections
('000)
|
|
|
|
|
|
Retail
postpaid
|
|
100,103
|
95,185
|
5.2
|
|
Retail
prepaid
|
|
6,053
|
5,965
|
1.5
|
Retail
|
|
106,156
|
101,150
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/14
|
9/30/13
|
%
Change
|
|
9/30/14
|
9/30/13
|
%
Change
|
|
|
|
|
|
|
|
|
|
Net Add Detail
('000) (1)
|
|
|
|
|
|
|
|
|
Retail
postpaid
|
1,516
|
927
|
63.5
|
|
3,496
|
2,545
|
37.4
|
|
Retail
prepaid
|
9
|
134
|
(93.3)
|
|
5
|
274
|
(98.2)
|
Retail
|
1,525
|
1,061
|
43.7
|
|
3,501
|
2,819
|
24.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Account
Statistics
|
|
|
|
|
|
|
|
Retail Postpaid
Accounts ('000) (2)
|
|
|
|
|
35,435
|
34,972
|
1.3
|
Retail postpaid
ARPA
|
$ 161.24
|
$ 155.74
|
3.5
|
|
$ 160.21
|
$ 152.84
|
4.8
|
Retail postpaid
connections per account (2)
|
|
|
|
|
2.82
|
2.72
|
3.7
|
|
|
|
|
|
|
|
|
|
Churn
Detail
|
|
|
|
|
|
|
|
Retail
postpaid
|
1.00%
|
0.97%
|
|
|
1.00%
|
0.97%
|
|
Retail
|
1.29%
|
1.28%
|
|
|
1.30%
|
1.27%
|
|
|
|
|
|
|
|
|
|
|
Retail Postpaid
Connection Statistics
|
|
|
|
|
|
|
|
Total Smartphone
postpaid % of phones activated
|
91.0%
|
84.9%
|
|
|
90.6%
|
84.5%
|
|
Total Smartphone
postpaid phone base (2)
|
|
|
|
|
76.5%
|
67.2%
|
|
Total Internet
postpaid base (2)
|
|
|
|
|
13.1%
|
10.2%
|
|
|
|
|
|
|
|
|
|
Other Operating
Statistics
|
|
|
|
|
|
|
|
Capital expenditures
(in millions)
|
$ 2,483
|
$ 2,450
|
1.3
|
|
$ 7,808
|
$ 6,720
|
16.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Verizon
Communications Inc.
|
Wireline - Selected
Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
|
9 Mos.
Ended
|
9 Mos.
Ended
|
|
Unaudited
|
9/30/14
|
9/30/13
|
%
Change
|
|
9/30/14
|
9/30/13
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
Consumer
retail
|
$ 3,902
|
$ 3,735
|
4.5
|
|
$ 11,606
|
$ 11,020
|
5.3
|
|
Small
business
|
613
|
639
|
(4.1)
|
|
1,858
|
1,912
|
(2.8)
|
Mass
Markets
|
4,515
|
4,374
|
3.2
|
|
13,464
|
12,932
|
4.1
|
|
|
|
|
|
|
|
|
|
|
Strategic
services
|
2,068
|
2,048
|
1.0
|
|
6,214
|
6,059
|
2.6
|
|
Core
|
1,316
|
1,491
|
(11.7)
|
|
4,099
|
4,590
|
(10.7)
|
Global
Enterprise
|
3,384
|
3,539
|
(4.4)
|
|
10,313
|
10,649
|
(3.2)
|
|
|
|
|
|
|
|
|
|
Global
Wholesale
|
1,552
|
1,631
|
(4.8)
|
|
4,713
|
4,992
|
(5.6)
|
Other
|
125
|
113
|
10.6
|
|
379
|
339
|
11.8
|
Total Operating
Revenues
|
9,576
|
9,657
|
(0.8)
|
|
28,869
|
28,912
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Cost of services and
sales
|
5,325
|
5,342
|
(0.3)
|
|
16,006
|
15,925
|
0.5
|
Selling, general and
administrative expense
|
2,048
|
2,094
|
(2.2)
|
|
6,228
|
6,517
|
(4.4)
|
Depreciation and
amortization expense
|
1,978
|
2,074
|
(4.6)
|
|
6,016
|
6,254
|
(3.8)
|
Total Operating
Expenses
|
9,351
|
9,510
|
(1.7)
|
|
28,250
|
28,696
|
(1.6)
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
$
225
|
$
147
|
53.1
|
|
$
619
|
$
216
|
*
|
Operating Income
Margin
|
2.3%
|
1.5%
|
|
|
2.1%
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
$ 2,203
|
$ 2,221
|
(0.8)
|
|
$ 6,635
|
$ 6,470
|
2.6
|
Segment EBITDA
Margin
|
23.0%
|
23.0%
|
|
|
23.0%
|
22.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, where appropriate, to reflect
comparable operating results.
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
Verizon
Communications Inc.
|
Wireline - Selected
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
9/30/14
|
9/30/13
|
%
Change
|
|
|
|
|
|
Connections
('000)
|
|
|
|
|
FiOS Video
Subscribers
|
5,533
|
5,170
|
7.0
|
|
FiOS Internet
Subscribers
|
6,471
|
5,946
|
8.8
|
|
FiOS Digital Voice
residence connections
|
4,514
|
4,069
|
10.9
|
FiOS Digital
connections
|
16,518
|
15,185
|
8.8
|
|
|
|
|
|
|
HSI
|
2,675
|
3,049
|
(12.3)
|
Total Broadband
connections
|
9,146
|
8,995
|
1.7
|
|
Primary residence
switched access connections
|
5,794
|
6,821
|
(15.1)
|
Primary residence
connections
|
10,308
|
10,890
|
(5.3)
|
|
|
|
|
|
Total retail
residence voice connections
|
10,743
|
11,421
|
(5.9)
|
Total voice
connections
|
20,089
|
21,457
|
(6.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Mos.
Ended
|
3 Mos.
Ended
|
|
|
9 Mos
Ended
|
9 Mos
Ended
|
|
Unaudited
|
9/30/14
|
9/30/13
|
%
Change
|
|
9/30/14
|
9/30/13
|
%
Change
|
|
|
|
|
|
|
|
|
|
Net Add Detail
('000)
|
|
|
|
|
|
|
|
|
FiOS Video
Subscribers
|
114
|
135
|
(15.6)
|
|
271
|
444
|
(39.0)
|
|
FiOS Internet
Subscribers
|
162
|
173
|
(6.4)
|
|
399
|
522
|
(23.6)
|
|
FiOS Digital Voice
residence connections
|
74
|
252
|
(70.6)
|
|
266
|
842
|
(68.4)
|
FiOS Digital
connections
|
350
|
560
|
(37.5)
|
|
936
|
1,808
|
(48.2)
|
|
|
|
|
|
|
|
|
|
|
HSI
|
(93)
|
(117)
|
(20.5)
|
|
(268)
|
(322)
|
(16.8)
|
Total Broadband
connections
|
69
|
56
|
23.2
|
|
131
|
200
|
(34.5)
|
|
Primary residence
switched access connections
|
(213)
|
(379)
|
(43.8)
|
|
(687)
|
(1,161)
|
(40.8)
|
Primary residence
connections
|
(139)
|
(127)
|
9.4
|
|
(421)
|
(319)
|
32.0
|
|
|
|
|
|
|
|
|
|
Total retail
residence voice connections
|
(160)
|
(162)
|
(1.2)
|
|
(486)
|
(428)
|
13.6
|
Total voice
connections
|
(302)
|
(371)
|
(18.6)
|
|
(996)
|
(1,046)
|
(4.8)
|
|
|
|
|
|
|
|
|
|
Revenue and ARPU
Statistics
|
|
|
|
|
|
|
|
Consumer
ARPU
|
$ 125.32
|
$ 113.65
|
10.3
|
|
$ 122.60
|
$ 110.81
|
10.6
|
FiOS revenues (in
millions)
|
$ 3,200
|
$ 2,823
|
13.4
|
|
$ 9,366
|
$ 8,187
|
14.4
|
Strategic services as
a % of total Enterprise revenues
|
61.1%
|
57.9%
|
|
|
60.3%
|
56.9%
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Statistics
|
|
|
|
|
|
|
|
Capital expenditures
(in millions)
|
$ 1,464
|
$ 1,518
|
(3.6)
|
|
$ 4,194
|
$ 4,467
|
(6.1)
|
|
|
|
|
|
|
|
|
|
Wireline employees
('000)
|
|
|
|
|
79.4
|
83.6
|
|
FiOS Video Open for
Sale ('000)
|
|
|
|
|
15,602
|
14,824
|
|
FiOS Video
penetration
|
|
|
|
|
35.5%
|
34.9%
|
|
FiOS Internet Open
for Sale ('000)
|
|
|
|
|
15,945
|
15,167
|
|
FiOS Internet
penetration
|
|
|
|
|
40.6%
|
39.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes:
|
|
|
|
|
|
|
|
|
The segment financial
results and metrics above are adjusted to exclude the effects of
non-operational items, as the Company's chief operating decision
maker excludes these items in assessing business unit
performance.
|
|
|
|
|
|
|
|
|
|
|
Intersegment
transactions have not been eliminated.
|
|
|
|
|
|
|
|
|
|
|
Certain
reclassifications have been made, where appropriate, to reflect
comparable operating results.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/verizon-reports-strong-customer-additions-and-another-quarter-of-double-digit-earnings-growth-879929957.html
SOURCE Verizon Communications Inc.