Frontier Communications Parent (FYBR) 8-K Entry into a Material Definitive Agreement

Confidential

2009

2009

Pro Forma

Actual

Actual

Statistics

Frontier

SpinCo

Sub-Total

Synergies

Total

Revenue

$2,118

$3,953

$6,071

$0

$6,071

Adjusted EBITDA

(1)

1,149

1,819

2,968

500

3,468

% EBITDA Margin

54.3%

46.0%

48.9%

57.1%

Bridge to Free Cash Flow:

Interest Expense

(378)

(280)

(659)

-

(659)

Cash Taxes

(60)

(243)

(303)

(190)

(493)

Capital Expenditures

(231)

(558)

(789)

-

(789)

Other

11

-

11

-

11

Free Cash Flow

$491

$738

$1,229

$310

$1,539

Net Debt / Adj. EBITDA

3.9x

1.9x

2.6x

2.3x

Adj. EBITDA / Interest Exp.

3.0x

6.5x

4.5x

5.3x

Dividend ($0.75 / share)

(2)

$0

$0

$742

$0

$742

FCF Dividend Payout Ratio

–

–

60%

–

48%

2009 Key Pro Forma Financial Data

Notes

(1) See adjustments in Appendix, Reconciliation of Non-GAAP Financial Measures.

(2) Based on share price at the $7.75 mid-point of the collar.

(3) Assumes $3.4 billion of debt with blended interest rate of 8.25%.

(4) Adjusted to exclude $52 million of non-cash pension and OPEB expense at SpinCo.

(5) Includes assumed $65M of financing for deal costs.

(4)

(3)

(5)

Exhibit 99.4

Confidential

Non-GAAP Information

Use of Non-GAAP Information

This presentation contains non-GAAP financial information. For a reconciliation of these measures to the

most comparable measure prepared in accordance with GAAP, see the Appendix.   Neither Verizon nor

Verizon’s Separate Telephone Operations have historically used Adjusted EBITDA in connection with the

management of Verizon’s Separate Telephone Operations.  All information regarding Adjusted EBITDA in

this presentation has been prepared by Frontier.

Confidential

Reconciliation of Non-GAAP Financial Measures

Verizon's Separate

Pro Forma

Total

($ in millions)

Frontier

Telephone Operations

Adjustments

Pro Forma

EBITDA

Operating Income

606

$        

542

$                

219

$      

1,367

$   

Add back:

Depreciation and amortization

477

781

253

1,511

EBITDA, as reported

1,083

$     

1,323

$             

472

$      

2,878

$   

Add/(subtract):

34

52

-

86

Severance and early retirement costs

4

-

-

4

Acquisition and integration costs

28

-

(28)

-

Adjusted EBITDA

1,149

$     

1,375

$             

444

$      

2,968

$   

For the year ended December 31, 2009

Non-cash pension and other

postretirement costs