Exhibit 99
News Release
| | | | | |
| FOR IMMEDIATE RELEASE | Media contacts: |
| January 25, 2022 | Kim Ancin |
| 908.559.3227 |
| kimberly.ancin@verizon.com |
| |
| Eric Wilkens |
| 908.559.3063 |
| eric.wilkens@verizon.com |
Verizon ends 2021 with
strong wireless service revenue and EPS growth
Company enters 2022 with significant 5G adoption
and fixed wireless broadband momentum;
Now covering more than 95 million people in the U.S. with 5G Ultra Wideband
2021 highlights
Consolidated:
•Full-year 2021 earnings per share (EPS) of $5.32, compared with $4.30 in 2020; adjusted EPS*, excluding special items, of $5.39, compared with 2020 adjusted EPS* of $4.90, a 10.0 percent increase year over year.
•Operating revenues of $133.6 billion in full-year 2021, up 4.1 percent year over year.
4Q 2021 highlights
Consolidated:
•$1.11 in EPS, compared with $1.11 in fourth-quarter 2020; adjusted EPS*, excluding special items, of $1.31, compared with $1.21 in fourth-quarter 2020, an 8.3 percent increase year over year.
•Operating revenue of $34.1 billion, down 1.8 percent from fourth-quarter 2020. Adjusting for the sale of Verizon Media on September 1, operating revenue grew 4.8 percent year over year.
•Net income of $4.7 billion, an increase of 0.4 percent from fourth-quarter 2020, and adjusted EBITDA* of $11.8 billion, relatively flat compared to fourth-quarter 2020.
Total Wireless:
•Total wireless service revenue of $17.8 billion, a 6.5 percent increase year over year, driven by a combination of higher ARPA (average revenue per account), volume growth and the contribution from the acquisition of TracFone Wireless, which was completed on November 23.
•Total retail postpaid churn of 1.01 percent, and retail postpaid phone churn of 0.81 percent.
•1,058,000 retail postpaid net additions, including 558,000 phone net additions, resulting in 142.8 million total retail connections.
Total Broadband:
•106,000 total broadband net additions, defined as wireline (Fios and DSL) and fixed wireless, an increase of 30,000 total broadband net additions year over year.
•78,000 fixed wireless net additions, an increase from 55,000 fixed wireless net additions in third-quarter 2021.
•55,000 Fios Internet net additions in fourth-quarter 2021. In full-year 2021, Verizon reported 360,000 Fios Internet net additions, the best annual performance since 2014. Total Fios revenues were $3.2 billion in fourth-quarter 2021, an increase of 5.7 percent year over year. Full-year 2021 Fios revenues were approximately $12.7 billion, up 4.6 percent year over year.
NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) closed 2021 with another quarter of strong wireless service revenue growth and increased 5G phone adoption, as more than one in three Consumer wireless phone customers now have a 5G-capable device.
"2021 was a transformational year for Verizon that will serve as a catalyst for us," said Verizon Chairman and CEO Hans Vestberg. "We delivered on all of our goals in 2021 and made great progress on our five paths of growth, finishing the year with strong operating and financial momentum. As we move into 2022, we have the necessary assets to realize our strategy that we laid out in 2019. We are laser focused on executing our 5G strategy and providing value to our customers, shareholders, employees, and society, as 2022 will be the most exciting year yet for Verizon."
For fourth-quarter 2021, Verizon reported EPS of $1.11, compared with $1.11 in fourth-quarter 2020. On an adjusted basis*, fourth-quarter 2021 EPS, excluding special items, was $1.31, compared with adjusted EPS* of $1.21 in fourth-quarter 2020, an 8.3 percent increase year over year.
Fourth-quarter 2021 EPS included a net pre-tax loss from special items of approximately $1.2 billion. This included a charge of $2.4 billion for the early extinguishment of debt, a $106 million charge related to severance, a $1.2 billion credit pertaining to annual mark-to-market for pension and OPEB (other post-employment benefits) liabilities, and a net gain of $131 million primarily related to the disposition of an investment. Fourth-quarter 2021 results also included the revenue associated with the acquisition of TracFone, as the deal was completed on November 23. The revenue associated with
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TracFone in 2021 was approximately $700 million higher than the revenue from TracFone in fourth-quarter 2020.
For full-year 2021, Verizon reported $5.32 in EPS, compared with $4.30 in full-year 2020. On an adjusted basis*, excluding special items, 2021 EPS was $5.39, compared with 2020 EPS of $4.90, a 10.0 percent increase year over year.
“Verizon delivered another strong earnings performance this quarter,” said Verizon Chief Financial Officer Matt Ellis. "Our financial discipline enabled us to deliver attractive service revenue growth and profitability this quarter as we expanded our portfolio with the TracFone acquisition and saw strong demand for our products and services. In 2021 we delivered on raised adjusted EPS* expectations, grew revenue, achieved our $10 billion cost savings goal, and funded our C-Band spectrum investment."
Consolidated results
•Total consolidated operating revenues in fourth-quarter 2021 were $34.1 billion, down 1.8 percent from fourth-quarter 2020. Adjusting for the sale of Verizon Media on September 1, operating revenue grew 4.8 percent year over year. Strong wireless service revenue growth and wireless equipment revenue were offset by continued declines in legacy wireline products. Full-year 2021 consolidated operating revenues were $133.6 billion, up 4.1 percent year over year.
•Cash flow from operations totaled $39.5 billion in 2021, a decrease from $41.8 billion year over year. Continued strong performance in the business was offset by higher working capital from device payments receivables, and higher cash taxes.
•Full-year 2021 capital expenditures were $20.3 billion. Capital expenditures continue to support the growth in traffic on the company's 4G LTE network as the company initiates the first phase of C-Band deployment covering more than 95 million people in the U.S. Capital expenditures related to C-Band were approximately $2.1 billion in 2021.
•The company ended 2021 with free cash flow* of $19.3 billion, a decrease from $23.6 billion at year-end 2020.
•Verizon's unsecured debt as of the end of fourth-quarter 2021 increased by $18.2 billion year over year to $136.7 billion, but improved by $4.9 billion sequentially from the end of third-quarter 2021. The company's net unsecured debt* balance increased year over year by $37.5 billion to $133.7 billion at the end of fourth-quarter 2021, but decreased by $3.7 billion from the end of first-quarter 2021, with its net unsecured debt to adjusted EBITDA ratio* at approximately 2.8 times at the end of fourth-quarter 2021.
Consumer results
•Consumer saw strong demand in fourth-quarter 2021 for its higher-tier premium mobility and broadband offerings. Strong wireless service revenue momentum, healthy profitability and significant Fios revenue growth highlighted the quarter. Consumer continued to expand its leadership in 5G adoption, ending 2021 with more than one in three wireless phone customers having 5G-capable devices.
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•Total Verizon Consumer revenues were $25.7 billion in fourth-quarter 2021, an increase of 7.4 percent year over year. This included the net revenue change from TracFone of approximately $700 million, including approximately $500 million of incremental service revenue year over year. For full-year 2021, total Verizon Consumer revenues were $95.3 billion, an increase of 7.6 percent from full-year 2020.
•Consumer wireless service revenues were $14.6 billion in fourth-quarter 2021, a 7.7 percent increase year over year, reflecting ongoing step-ups to unlimited and premium unlimited plans, and the contribution from TracFone. For full-year 2021, total Consumer wireless service revenues were $56.1 billion, an increase of 4.7 percent from full-year 2020.
•Consumer wireless retail postpaid churn was 0.94 percent in fourth-quarter 2021, and wireless retail postpaid phone churn was 0.77 percent.
•In fourth-quarter 2021, Consumer reported 667,000 wireless retail postpaid net additions. This consisted of 336,000 phone net additions and 369,000 other connected device net additions, offset by 38,000 tablet net losses. Consumer also reported 85,000 wireless prepaid net losses, which included TracFone results since November 23.
•Consumer reported 51,000 Fios Internet net additions in fourth-quarter 2021, and 339,000 Fios Internet net additions in full-year 2021. Consumer Fios revenues were $2.9 billion in fourth-quarter 2021, an increase of 5.6 percent year over year. Consumer reported 69,000 Fios Video net losses in fourth-quarter 2021.
•In fourth-quarter 2021, Consumer segment operating income was $7.3 billion, an increase of 3.9 percent year over year, and segment operating income margin was 28.6 percent, a decrease from 29.6 percent in fourth-quarter 2020. Full-year 2021 segment operating income margin was 31.4 percent, a decrease from 32.6 percent in full-year 2020. Segment EBITDA* totaled $10.3 billion in fourth-quarter 2021, an increase of 4.1 percent from fourth-quarter 2020, driven by service revenue growth. Segment EBITDA margin* was 40.3 percent in fourth-quarter 2021, a decrease from 41.5 percent in fourth-quarter 2020, due to higher equipment revenues associated with increased volumes. For the full year, segment EBITDA margin* was 43.7 percent in 2021, a decrease from 45.5 percent in 2020.
Business results
•Business exited 2021 with strong momentum in business activity and demand for wireless products. Fourth-quarter 2021 was highlighted by strong phone gross additions in Small and Medium Business and the fourth consecutive quarter of wireless service revenue growth for Global Enterprise.
•Total Verizon Business revenues were $7.8 billion in fourth-quarter 2021, down 3.0 percent year over year. Wireless revenue growth continues to offset ongoing legacy wireline declines. For full-year 2021, total Verizon Business revenues were $31.0 billion, an increase of 0.3 percent from full-year 2020.
•Business wireless service revenues were $3.1 billion in fourth-quarter 2021, a 1.5 percent increase year over year. Full-year 2021 Business wireless service revenues were $12.4 billion, an increase of 4.8 percent from full-year 2020.
•Business wireless retail postpaid churn was 1.26 percent in fourth-quarter 2021, and wireless retail postpaid phone churn was 1.01 percent.
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•Business reported 391,000 wireless retail postpaid net additions in fourth-quarter 2021, including 222,000 phone net additions. This was the best quarterly phone net addition performance for Business since the onset of the pandemic.
•In fourth-quarter 2021, Business segment operating income was $796 million, a decrease of 16.2 percent year over year, and segment operating income margin was 10.2 percent, a decrease from 11.8 percent in fourth-quarter 2020. Full-year 2021 segment operating income margin was 11.1 percent, compared with 12.2 percent in full-year 2020. Segment EBITDA* totaled $1.8 billion in fourth-quarter 2021, a decrease of 7.4 percent from fourth-quarter 2020. Segment EBITDA margin* was 23.5 percent, a decrease from 24.6 percent in fourth-quarter 2020, driven by pressure in legacy wireline products. For the full year, segment EBITDA margin* was 24.2 percent in 2021, a decrease from 25.4 percent in 2020.
Outlook and guidance
For 2022, Verizon expects the following:
•Organic service and other revenue growth of around 3 percent. On a reported basis, which includes the net impact of the sale of Verizon Media and the company's ownership of TracFone, service and other revenue growth is expected to be in a range of 1.0 percent and 1.5 percent.
•Reported wireless service revenue growth in the range of 9 percent to 10 percent. Excluding the impact of the TracFone acquisition, wireless service revenue is expected to grow at least 3 percent.
•Adjusted EBITDA* growth in the range of 2 percent to 3 percent.
•Adjusted EPS* of $5.40 to $5.55. The company expects adjusted EBITDA* growth in 2022 to be offset by headwinds from non-cash items. Beginning in 2022, the company's adjusted EPS* will exclude amortization of acquisition-related intangible assets. In 2021, the intangible amortization negatively impacted adjusted EPS* by approximately 11 cents. In 2022, the company anticipates the impact to be approximately 17 cents to 19 cents.
•Adjusted effective income tax rate* in the range of 23 percent to 25 percent.
•Capital spending, excluding C-Band, in the range of $16.5 billion to $17.5 billion, a decrease from $18.2 billion in 2021, as the company has started its progress towards lower capital intensity. Additional expenditures related to the deployment of the company's C-Band 5G network are expected to be in the range of $5 billion to $6 billion as the company continues to build out the initial markets and begins preparations for deploying Phase 2 spectrum.
*Non-GAAP financial measure. 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) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $133.6 billion in 2021. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control.
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VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/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,” “expects,” “hopes,” “forecasts,” “plans” 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. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. 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: cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions or terrorist attacks and any resulting financial or reputational impact; the impact of public health crises, including the COVID-19 pandemic, on our operations, our employees and the ways in which our customers use our networks and other products and services; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors, the COVID-19 pandemic or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; the effects of competition in the markets in which we operate; failure to take advantage of developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; 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; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; and 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.
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Verizon Communications Inc.
Condensed Consolidated Statements of Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | %
Change | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service revenues and other | | $ | 26,740 | | | $ | 28,268 | | | (5.4) | | $ | 110,449 | | | $ | 109,872 | | | 0.5 |
| Wireless equipment revenues | | 7,327 | | | 6,424 | | | 14.1 | | 23,164 | | | 18,420 | | | 25.8 |
| Total Operating Revenues | | 34,067 | | | 34,692 | | | (1.8) | | 133,613 | | | 128,292 | | | 4.1 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 7,035 | | | 8,053 | | | (12.6) | | 31,234 | | | 31,401 | | | (0.5) |
| Cost of wireless equipment | | 7,961 | | | 6,769 | | | 17.6 | | 25,067 | | | 19,800 | | | 26.6 |
| Selling, general and administrative expense | | 7,412 | | | 8,493 | | | (12.7) | | 28,658 | | | 31,573 | | | (9.2) |
| Depreciation and amortization expense | | 4,051 | | | 4,197 | | | (3.5) | | 16,206 | | | 16,720 | | | (3.1) |
| | | | | | | | | | | | |
| Total Operating Expenses | | 26,459 | | | 27,512 | | | (3.8) | | 101,165 | | | 99,494 | | | 1.7 |
| | | | | | | | | | | | |
| Operating Income | | 7,608 | | | 7,180 | | | 6.0 | | 32,448 | | | 28,798 | | | 12.7 |
| Equity in earnings (losses) of unconsolidated businesses | | 135 | | | (11) | | | * | | 145 | | | (45) | | | * |
| Other income (expense), net | | (860) | | | 164 | | | * | | 312 | | | (539) | | | * |
| Interest expense | | (739) | | | (1,080) | | | (31.6) | | (3,485) | | | (4,247) | | | (17.9) |
| Income Before Provision For Income Taxes | | 6,144 | | | 6,253 | | | (1.7) | | 29,420 | | | 23,967 | | | 22.8 |
| Provision for income taxes | | (1,407) | | | (1,535) | | | (8.3) | | (6,802) | | | (5,619) | | | 21.1 |
| Net Income | | $ | 4,737 | | | $ | 4,718 | | | 0.4 | | $ | 22,618 | | | $ | 18,348 | | | 23.3 |
| | | | | | | | | | | | |
| Net income attributable to noncontrolling interests | | $ | 124 | | | $ | 130 | | | (4.6) | | $ | 553 | | | $ | 547 | | | 1.1 |
| Net income attributable to Verizon | | 4,613 | | | 4,588 | | | 0.5 | | 22,065 | | | 17,801 | | | 24.0 |
| Net Income | | $ | 4,737 | | | $ | 4,718 | | | 0.4 | | $ | 22,618 | | | $ | 18,348 | | | 23.3 |
| | | | | | | | | | | | |
| Basic Earnings Per Common Share | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 1.11 | | | $ | 1.11 | | | — | | $ | 5.32 | | | $ | 4.30 | | | 23.7 |
| Weighted-average shares outstanding (in millions) | | 4,167 | | | 4,140 | | | | | 4,148 | | | 4,140 | | | |
| | | | | | | | | | | | |
Diluted Earnings Per Common Share (1) | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 1.11 | | | $ | 1.11 | | | — | | $ | 5.32 | | | $ | 4.30 | | | 23.7 |
| Weighted-average shares outstanding (in millions) | | 4,169 | | | 4,143 | | | | | 4,150 | | | 4,142 | | | |
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 | | 12/31/21 | | 12/31/20 | | $ Change |
| | | | | | |
| Assets | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 2,921 | | | $ | 22,171 | | | $ | (19,250) | |
| Accounts receivable | | 24,742 | | | 25,169 | | | (427) | |
| Less Allowance for credit losses | | 896 | | | 1,252 | | | (356) | |
| | | | | | |
| Accounts receivable, net | | 23,846 | | | 23,917 | | | (71) | |
| Inventories | | 3,055 | | | 1,796 | | | 1,259 | |
| | | | | | |
| Prepaid expenses and other | | 6,906 | | | 6,710 | | | 196 | |
| Total current assets | | 36,728 | | | 54,594 | | | (17,866) | |
| | | | | | |
| Property, plant and equipment | | 289,897 | | | 279,737 | | | 10,160 | |
| Less Accumulated depreciation | | 190,201 | | | 184,904 | | | 5,297 | |
| Property, plant and equipment, net | | 99,696 | | | 94,833 | | | 4,863 | |
| Investments in unconsolidated businesses | | 1,061 | | | 589 | | | 472 | |
| Wireless licenses | | 147,619 | | | 96,097 | | | 51,522 | |
| Deposits for wireless licenses | | — | | | 2,772 | | | (2,772) | |
| Goodwill | | 28,603 | | | 24,773 | | | 3,830 | |
| Other intangible assets, net | | 11,677 | | | 9,413 | | | 2,264 | |
| Operating lease right-of-use assets | | 27,883 | | | 22,531 | | | 5,352 | |
| Other assets | | 13,329 | | | 10,879 | | | 2,450 | |
| Total assets | | $ | 366,596 | | | $ | 316,481 | | | $ | 50,115 | |
| | | | | | |
| Liabilities and Equity | | | | | | |
| Current liabilities | | | | | | |
| Debt maturing within one year | | $ | 7,443 | | | $ | 5,889 | | | $ | 1,554 | |
| Accounts payable and accrued liabilities | | 24,833 | | | 20,658 | | | 4,175 | |
| | | | | | |
| Current operating lease liabilities | | 3,859 | | | 3,485 | | | 374 | |
| Other current liabilities | | 11,025 | | | 9,628 | | | 1,397 | |
| Total current liabilities | | 47,160 | | | 39,660 | | | 7,500 | |
| | | | | | |
| Long-term debt | | 143,425 | | | 123,173 | | | 20,252 | |
| Employee benefit obligations | | 15,410 | | | 18,657 | | | (3,247) | |
| Deferred income taxes | | 40,685 | | | 35,711 | | | 4,974 | |
| Non-current operating lease liabilities | | 23,203 | | | 18,000 | | | 5,203 | |
| Other liabilities | | 13,513 | | | 12,008 | | | 1,505 | |
| Total long-term liabilities | | 236,236 | | | 207,549 | | | 28,687 | |
| | | | | | |
| Equity | | | | | | |
| Common stock | | 429 | | | 429 | | | — | |
| Additional paid in capital | | 13,861 | | | 13,404 | | | 457 | |
| Retained earnings | | 71,993 | | | 60,464 | | | 11,529 | |
| Accumulated other comprehensive loss | | (927) | | | (71) | | | (856) | |
| Common stock in treasury, at cost | | (4,104) | | | (6,719) | | | 2,615 | |
| Deferred compensation – employee stock ownership plans and other | | 538 | | | 335 | | | 203 | |
| Noncontrolling interests | | 1,410 | | | 1,430 | | | (20) | |
| Total equity | | 83,200 | | | 69,272 | | | 13,928 | |
| Total liabilities and equity | | $ | 366,596 | | | $ | 316,481 | | | $ | 50,115 | |
Footnotes:
Certain amounts have been reclassified to conform to the current period presentation.
Verizon Communications Inc.
Consolidated - Selected Financial and Operating Statistics
| | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 12/31/21 | | 12/31/20 |
| | | | |
| Total debt | | $ | 150,868 | | | $ | 129,062 | |
| | | | |
| Net unsecured debt | | $ | 133,745 | | | $ | 96,287 | |
| | | | |
Net unsecured debt / Consolidated Adjusted EBITDA(1) | | 2.8x | | 2.0x |
| Common shares outstanding end of period (in millions) | | 4,198 | | | 4,138 | |
| Total employees (‘000) | | 118.4 | | | 132.2 | |
| Quarterly cash dividends declared per common share | | $ | 0.6400 | | | $ | 0.6275 | |
Footnotes:
(1)Consolidated adjusted EBITDA excludes the effects of non-operational items and special items.
Verizon Communications Inc.
Condensed Consolidated Statements of Cash Flows
| | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | $ Change |
| | | | | | |
| Cash Flows from Operating Activities | | | | | | |
| Net Income | | $ | 22,618 | | | $ | 18,348 | | | $ | 4,270 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | |
| Depreciation and amortization expense | | 16,206 | | | 16,720 | | | (514) | |
| Employee retirement benefits | | (3,391) | | | 840 | | | (4,231) | |
| Deferred income taxes | | 4,264 | | | 1,553 | | | 2,711 | |
| Provision for expected credit losses | | 789 | | | 1,380 | | | (591) | |
| Equity in losses of unconsolidated businesses, net of dividends received | | 36 | | | 91 | | | (55) | |
| | | | | | |
| | | | | | |
| Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | | (890) | | | 56 | | | (946) | |
| | | | | | |
| Other, net | | (93) | | | 2,780 | | | (2,873) | |
| Net cash provided by operating activities | | 39,539 | | | 41,768 | | | (2,229) | |
| | | | | | |
| Cash Flows from Investing Activities | | | | | | |
| Capital expenditures (including capitalized software) | | (20,286) | | | (18,192) | | | (2,094) | |
| Acquisitions of businesses, net of cash acquired | | (4,065) | | | (520) | | | (3,545) | |
| Acquisitions of wireless licenses | | (47,596) | | | (3,896) | | | (43,700) | |
| Proceeds from disposition of business | | 4,122 | | | — | | | 4,122 | |
| Other, net | | 672 | | | (904) | | | 1,576 | |
| Net cash used in investing activities | | (67,153) | | | (23,512) | | | (43,641) | |
| | | | | | |
| Cash Flows from Financing Activities | | | | | | |
| Proceeds from long-term borrowings | | 33,034 | | | 25,822 | | | 7,212 | |
| Proceeds from asset-backed long-term borrowings | | 8,383 | | | 5,635 | | | 2,748 | |
| Repayments of long-term borrowings and finance lease obligations | | (14,063) | | | (9,775) | | | (4,288) | |
| Repayments of asset-backed long-term borrowings | | (4,800) | | | (7,413) | | | 2,613 | |
| Dividends paid | | (10,445) | | | (10,232) | | | (213) | |
| Other, net | | (3,832) | | | (2,712) | | | (1,120) | |
| Net cash provided by financing activities | | 8,277 | | | 1,325 | | | 6,952 | |
| | | | | | |
| Increase (decrease) in cash, cash equivalents and restricted cash | | (19,337) | | | 19,581 | | | (38,918) | |
| Cash, cash equivalents and restricted cash, beginning of period | | 23,498 | | | 3,917 | | | 19,581 | |
| Cash, cash equivalents and restricted cash, end of period | | $ | 4,161 | | | $ | 23,498 | | | $ | (19,337) | |
Footnotes:
Certain amounts have been reclassified to conform to the current period presentation.
Verizon Communications Inc.
Consumer - Selected Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | %
Change | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service | | $ | 17,564 | | | $ | 16,388 | | | 7.2 | | $ | 67,733 | | | $ | 64,884 | | | 4.4 |
| Wireless equipment | | 6,320 | | | 5,503 | | | 14.8 | | 19,781 | | | 15,492 | | | 27.7 |
| Other | | 1,813 | | | 2,028 | | | (10.6) | | 7,786 | | | 8,157 | | | (4.5) |
| Total Operating Revenues | | 25,697 | | | 23,919 | | | 7.4 | | 95,300 | | | 88,533 | | | 7.6 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 4,251 | | | 3,824 | | | 11.2 | | 16,581 | | | 15,610 | | | 6.2 |
| Cost of wireless equipment | | 6,666 | | | 5,575 | | | 19.6 | | 20,523 | | | 15,736 | | | 30.4 |
| Selling, general and administrative expense | | 4,431 | | | 4,583 | | | (3.3) | | 16,562 | | | 16,936 | | | (2.2) |
| Depreciation and amortization expense | | 3,000 | | | 2,864 | | | 4.7 | | 11,679 | | | 11,395 | | | 2.5 |
| Total Operating Expenses | | 18,348 | | | 16,846 | | | 8.9 | | 65,345 | | | 59,677 | | | 9.5 |
| | | | | | | | | | | | |
| Operating Income | | $ | 7,349 | | | $ | 7,073 | | | 3.9 | | $ | 29,955 | | | $ | 28,856 | | | 3.8 |
| Operating Income Margin | | 28.6 | % | | 29.6 | % | | | | 31.4 | % | | 32.6 | % | | |
| | | | | | | | | | | | |
| Segment EBITDA | | $ | 10,349 | | | $ | 9,937 | | | 4.1 | | $ | 41,634 | | | $ | 40,251 | | | 3.4 |
| Segment EBITDA Margin | | 40.3 | % | | 41.5 | % | | | | 43.7 | % | | 45.5 | % | | |
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Consumer - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 12/31/21 | | 12/31/20 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid connections | | | | | | | | 91,543 | | | 90,346 | | | 1.3 |
| Wireless retail prepaid connections | | | | | | | | 23,852 | | | 4,027 | | | * |
| Total wireless retail connections | | | | | | | | 115,395 | | | 94,373 | | | 22.3 |
| | | | | | | | | | | | |
| Fios video connections | | | | | | | | 3,573 | | | 3,854 | | | (7.3) |
| Fios internet connections | | | | | | | | 6,541 | | | 6,202 | | | 5.5 |
| Fios digital voice residence connections | | | | | | | | 3,026 | | | 3,306 | | | (8.5) |
| Fios digital connections | | | | | | | | 13,140 | | | 13,362 | | | (1.7) |
| Wireline broadband connections | | | | | | | | 6,888 | | | 6,647 | | | 3.6 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | %
Change | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 3,234 | | | 2,945 | | | 9.8 | | 10,834 | | | 9,396 | | | 15.3 |
| | | | | | | | | | | | |
Net Additions Detail (‘000) : | | | | | | | | | | | | |
Wireless retail postpaid (1) | | 667 | | | 357 | | | 86.8 | | 1,114 | | | 40 | | | * |
Wireless retail prepaid (1) | | (85) | | | (50) | | | (70.0) | | (52) | | | (45) | | | (15.6) |
Total wireless retail (1) | | 582 | | | 307 | | | 89.6 | | 1,062 | | | (5) | | | * |
| | | | | | | | | | | | |
Wireless retail postpaid phones (1) | | 336 | | | 163 | | | * | | 575 | | | 95 | | | * |
| | | | | | | | | | | | |
| Fios video | | (69) | | | (72) | | | 4.2 | | (281) | | | (298) | | | 5.7 |
| Fios internet | | 51 | | | 92 | | | (44.6) | | 339 | | | 300 | | | 13.0 |
| Fios digital voice residence | | (68) | | | (78) | | | 12.8 | | (280) | | | (314) | | | 10.8 |
| Fios digital | | (86) | | | (58) | | | (48.3) | | (222) | | | (312) | | | 28.8 |
Wireline broadband (1) | | 30 | | | 66 | | | (54.5) | | 241 | | | 197 | | | 22.3 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 0.94 | % | | 0.96 | % | | | | 0.89 | % | | 0.87 | % | | |
| Wireless retail postpaid phones | | 0.77 | % | | 0.76 | % | | | | 0.71 | % | | 0.67 | % | | |
| Wireless retail | | 1.34 | % | | 1.12 | % | | | | 1.10 | % | | 1.03 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 14,643 | | | $ | 13,600 | | | 7.7 | | $ | 56,103 | | | $ | 53,605 | | | 4.7 |
| Fios revenues | | $ | 2,910 | | | $ | 2,756 | | | 5.6 | | $ | 11,558 | | | $ | 11,082 | | | 4.3 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Verizon Communications Inc.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | %
Change | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | %
Change |
| | | | | | | | | | | | |
| Other Wireless Statistics: | | | | | | | | | | | | |
Wireless retail postpaid ARPA (2) | | $ | 124.06 | | | $ | 120.20 | | | 3.2 | | $ | 122.30 | | | $ | 118.40 | | | 3.3 |
| Wireless retail postpaid upgrade rate | | 6.3 | % | | 6.0 | % | | | | | | | | |
Wireless retail postpaid accounts (‘000) (3) | | | | | | | | 33,651 | | | 33,659 | | | — |
Wireless retail postpaid connections per account (3) | | | | | | | | 2.72 | | | 2.68 | | | 1.5 |
Total wireless internet postpaid base (3) | | | | | | | | 16.4 | % | | 16.0 | % | | |
Footnotes:
(1) Connection net additions include certain adjustments.
(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(3) Statistics presented as of end of period.
Certain intersegment transactions with corporate entities have not been eliminated.
* Not meaningful
Verizon Communications Inc.
Business - Selected Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | %
Change | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Small and Medium Business | | $ | 3,112 | | | $ | 2,985 | | | 4.3 | | $ | 11,774 | | | $ | 11,132 | | | 5.8 |
| Global Enterprise | | 2,530 | | | 2,595 | | | (2.5) | | 10,224 | | | 10,410 | | | (1.8) |
| | | | | | | | | | | | |
| Public Sector and Other | | 1,517 | | | 1,726 | | | (12.1) | | 6,324 | | | 6,362 | | | (0.6) |
| Wholesale | | 651 | | | 744 | | | (12.5) | | 2,720 | | | 3,058 | | | (11.1) |
| Total Operating Revenues | | 7,810 | | | 8,050 | | | (3.0) | | 31,042 | | | 30,962 | | | 0.3 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 2,587 | | | 2,690 | | | (3.8) | | 10,653 | | | 10,659 | | | (0.1) |
| Cost of wireless equipment | | 1,296 | | | 1,194 | | | 8.5 | | 4,544 | | | 4,064 | | | 11.8 |
| Selling, general and administrative expense | | 2,093 | | | 2,185 | | | (4.2) | | 8,324 | | | 8,380 | | | (0.7) |
| Depreciation and amortization expense | | 1,038 | | | 1,031 | | | 0.7 | | 4,084 | | | 4,086 | | | — |
| Total Operating Expenses | | 7,014 | | | 7,100 | | | (1.2) | | 27,605 | | | 27,189 | | | 1.5 |
| | | | | | | | | | | | |
| Operating Income | | $ | 796 | | | $ | 950 | | | (16.2) | | $ | 3,437 | | | $ | 3,773 | | | (8.9) |
| Operating Income Margin | | 10.2 | % | | 11.8 | % | | | | 11.1 | % | | 12.2 | % | | |
| | | | | | | | | | | | |
| Segment EBITDA | | $ | 1,834 | | | $ | 1,981 | | | (7.4) | | $ | 7,521 | | | $ | 7,859 | | | (4.3) |
| Segment EBITDA Margin | | 23.5 | % | | 24.6 | % | | | | 24.2 | % | | 25.4 | % | | |
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Business - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 12/31/21 | | 12/31/20 | | %
Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid connections | | | | | | | | 27,411 | | | 26,507 | | | 3.4 |
| | | | | | | | | | | | |
| Fios video connections | | | | | | | | 71 | | | 73 | | | (2.7) |
| Fios internet connections | | | | | | | | 356 | | | 335 | | | 6.3 |
| Fios digital connections | | | | | | | | 427 | | | 408 | | | 4.7 |
| Wireline broadband connections | | | | | | | | 477 | | | 482 | | | (1.0) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | %
Change | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 1,417 | | | 1,285 | | | 10.3 | | 5,092 | | | 5,242 | | | (2.9) |
| | | | | | | | | | | | |
| Net Additions Detail (‘000): | | | | | | | | | | | | |
Wireless retail postpaid (1) | | 391 | | | 346 | | | 13.0 | | 1,001 | | | 1,518 | | | (34.1) |
Wireless retail postpaid phones (1) | | 222 | | | 116 | | | 91.4 | | 509 | | | 572 | | | (11.0) |
| | | | | | | | | | | | |
| Fios video | | (1) | | | (1) | | | — | | (2) | | | (4) | | | 50.0 |
| Fios internet | | 4 | | | 3 | | | 33.3 | | 21 | | | 9 | | | * |
| Fios digital | | 3 | | | 2 | | | 50.0 | | 19 | | | 5 | | | * |
Wireline broadband (1) | | (2) | | | (6) | | | 66.7 | | (5) | | | (24) | | | 79.2 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 1.26 | % | | 1.19 | % | | | | 1.27 | % | | 1.20 | % | | |
| Wireless retail postpaid phones | | 1.01 | % | | 0.98 | % | | | | 1.03 | % | | 0.96 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 3,119 | | | $ | 3,073 | | | 1.5 | | $ | 12,366 | | | $ | 11,805 | | | 4.8 |
| Fios revenues | | $ | 292 | | | $ | 272 | | | 7.4 | | $ | 1,136 | | | $ | 1,057 | | | 7.5 |
| | | | | | | | | | | | |
| Other Operating Statistics: | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Wireless retail postpaid upgrade rate | | 3.4 | % | | 4.0 | % | | | | | | | | |
Total wireless internet postpaid base (2) | | | | | | | | 34.6 | % | | 34.5 | % | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Footnotes:
(1) Connection net additions include certain adjustments.
(2) Statistics presented as of end of period.
Certain intersegment transactions with corporate entities have not been eliminated.
*Not meaningful
Verizon Communications Inc.
Supplemental Information - Total Wireless Operating and Financial Statistics
The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | 12/31/21 | | 12/31/20 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000) | | | | | | | | | | | | |
| Retail postpaid | | | | | | | | 118,954 | | | 116,853 | | | 1.8 |
| Retail prepaid | | | | | | | | 23,852 | | | 4,027 | | | * |
| Total retail | | | | | | | | 142,806 | | | 120,880 | | | 18.1 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | %
Change | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | | %
Change |
| | | | | | | | | | | | |
Net Additions Detail (‘000) (1) | | | | | | | | | | | | |
| Retail postpaid phone | | 558 | | | 279 | | | 100.0 | | 1,084 | | | 667 | | | 62.5 |
| Retail postpaid | | 1,058 | | | 703 | | | 50.5 | | 2,115 | | | 1,558 | | | 35.8 |
| Retail prepaid | | (85) | | | (50) | | | (70.0) | | (52) | | | (45) | | | (15.6) |
| Total retail | | 973 | | | 653 | | | 49.0 | | 2,063 | | | 1,513 | | | 36.4 |
| | | | | | | | | | | | |
| Account Statistics | | | | | | | | | | | | |
Retail postpaid accounts (‘000) (2) | | | | | | | | 35,332 | | | 35,244 | | | 0.2 |
Retail postpaid connections per account (2) | | | | | | | | 3.37 | | | 3.32 | | | 1.5 |
Retail postpaid ARPA (3) | | $ | 144.88 | | | $ | 141.17 | | | 2.6 | | $ | 143.18 | | | $ | 138.80 | | | 3.2 |
| | | | | | | | | | | | |
| Churn Detail | | | | | | | | | | | | |
| Retail postpaid phone | | 0.81 | % | | 0.80 | % | | | | 0.77 | % | | 0.72 | % | | |
| Retail postpaid | | 1.01 | % | | 1.01 | % | | | | 0.98 | % | | 0.94 | % | | |
| Retail | | 1.32 | % | | 1.14 | % | | | | 1.14 | % | | 1.07 | % | | |
| | | | | | | | | | | | |
| Retail Postpaid Connection Statistics | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total internet postpaid base (2) | | | | | | | | 20.6 | % | | 20.2 | % | | |
| Upgrade rate | | 5.7 | % | | 5.6 | % | | | | | | | | |
| | | | | | | | | | | | |
Revenue Statistics (in millions) (4) | | | | | | | | | | | | |
| Wireless service | | $ | 17,762 | | | $ | 16,673 | | | 6.5 | | $ | 68,469 | | | $ | 65,410 | | | 4.7 |
| Wireless equipment | | 7,327 | | | 6,424 | | | 14.1 | | 23,164 | | | 18,420 | | | 25.8 |
| Wireless other | | 1,840 | | | 2,029 | | | (9.3) | | 7,855 | | | 8,243 | | | (4.7) |
| Total Wireless | | $ | 26,929 | | | $ | 25,126 | | | 7.2 | | $ | 99,488 | | | $ | 92,073 | | | 8.1 |
Footnotes:
(1) Connection net additions include certain adjustments.
(2) Statistics presented as of end of period.
(3) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 6/30/21 | | 3 Mos. Ended 3/31/21 | | 3 Mos. Ended 12/31/20 | | 3 Mos. Ended 9/30/20 | | 3 Mos. Ended 6/30/20 | | 3 Mos. Ended 3/31/20 |
| | | | | | | | | | | | | | | | |
| Consolidated Net Income | | $ | 4,737 | | | $ | 6,554 | | | $ | 5,949 | | | $ | 5,378 | | | $ | 4,718 | | | $ | 4,504 | | | $ | 4,839 | | | $ | 4,287 | |
| Add: | | | | | | | | | | | | | | | | |
| Provision for income taxes | | 1,407 | | | 1,820 | | | 1,875 | | | 1,700 | | | 1,535 | | | 1,347 | | | 1,348 | | | 1,389 | |
Interest expense (1) | | 739 | | | 801 | | | 844 | | | 1,101 | | | 1,080 | | | 1,044 | | | 1,089 | | | 1,034 | |
| Depreciation and amortization expense | | 4,051 | | | 3,961 | | | 4,020 | | | 4,174 | | | 4,197 | | | 4,192 | | | 4,181 | | | 4,150 | |
| Consolidated EBITDA | | $ | 10,934 | | | $ | 13,136 | | | $ | 12,688 | | | $ | 12,353 | | | $ | 11,530 | | | $ | 11,087 | | | $ | 11,457 | | | $ | 10,860 | |
| | | | | | | | | | | | | | | | |
| Add/(subtract): | | | | | | | | | | | | | | | | |
Other (income) expense, net (2) | | $ | 860 | | | $ | (269) | | | $ | (502) | | | $ | (401) | | | $ | (164) | | | $ | 774 | | | $ | 72 | | | $ | (143) | |
Equity in losses (earnings) of unconsolidated businesses (3) | | (135) | | | (1) | | | (1) | | | (8) | | | 11 | | | 9 | | | 13 | | | 12 | |
| | | | | | | | | | | | | | | | |
| Severance charges | | 106 | | | 103 | | | — | | | — | | | 221 | | | — | | | — | | | — | |
| | | | | | | | | | | | | | | | |
| Loss on spectrum licenses | | — | | | — | | | — | | | 223 | | | — | | | — | | | — | | | 1,195 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Net (gain) loss from dispositions of businesses | | — | | | (706) | | | — | | | — | | | 126 | | | — | | | — | | | — | |
| | 831 | | | (873) | | | (503) | | | (186) | | | 194 | | | 783 | | | 85 | | | 1,064 | |
| | | | | | | | | | | | | | | | |
| Consolidated Adjusted EBITDA | | $ | 11,765 | | | $ | 12,263 | | | $ | 12,185 | | | $ | 12,167 | | | $ | 11,724 | | | $ | 11,870 | | | $ | 11,542 | | | $ | 11,924 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
(1) Includes Net early debt redemption costs, where applicable.
(2) Includes Pension and benefits mark-to-market adjustments and Net early debt redemption costs, where applicable.
(3) Includes Net gain from disposition of assets, where applicable.
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
| | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | 12/31/21 | | | | 3/31/21 | | 12/31/20 | | |
| | | | | | | | | | |
| Debt maturing within one year | | $ | 7,443 | | | | | $ | 8,802 | | | $ | 5,889 | | | |
| Long-term debt | | 143,425 | | | | | 149,700 | | | 123,173 | | | |
| Total Debt | | 150,868 | | | | | 158,502 | | | 129,062 | | | |
| Less Secured debt | | 14,202 | | | | | 10,876 | | | 10,604 | | | |
| Unsecured Debt | | 136,666 | | | | | 147,626 | | | 118,458 | | | |
| Less Cash and cash equivalents | | 2,921 | | | | | 10,205 | | | 22,171 | | | |
| Net Unsecured Debt | | $ | 133,745 | | | | | $ | 137,421 | | | $ | 96,287 | | | |
| Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | | 2.8x | | | | | | 2.0x | | |
| | | | | | | | | | |
| Unsecured Debt - Year over year change | | $ | 18,208 | | | | | | | | | |
| | | | | | | | | | |
| Net Unsecured Debt - Year over year change | | $ | 37,458 | | | | | | | | | |
| Net Unsecured Debt - 3/31/21 to 12/31/21 change | | $ | (3,676) | | | | | | | | | |
Verizon Communications Inc.
Adjusted Earnings per Common Share (Adjusted EPS)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 |
| | Pre-tax | Tax | After-Tax | | | Pre-tax | Tax | After-Tax | |
| EPS | | | | | $ | 1.11 | | | | | | $ | 1.11 | |
| | | | | | | | | | |
| Net severance, pension and benefits (credits) charges | | $ | (1,103) | | $ | 268 | | $ | (835) | | (0.20) | | | $ | 404 | | $ | (87) | | $ | 317 | | 0.08 | |
| Net (gain) loss from dispositions of assets and businesses | | (131) | | 30 | | (101) | | (0.02) | | | 119 | | 2 | | 121 | | 0.03 | |
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| Net early debt redemption costs | | 2,409 | | (629) | | 1,780 | | 0.43 | | | — | | — | | — | | — | |
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| | $ | 1,175 | | $ | (331) | | $ | 844 | | $ | 0.20 | | | $ | 523 | | $ | (85) | | $ | 438 | | $ | 0.11 | |
| Adjusted EPS | | | | | $ | 1.31 | | | | | | $ | 1.21 | |
| Year over year change % | | | | | 8.3 | % | | | | | |
Note: Adjusted EPS may not add due to rounding.
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| (dollars in millions, except per share amounts) |
| Unaudited | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 |
| | Pre-tax | Tax | After-Tax | | | Pre-tax | Tax | After-Tax | |
| EPS | | | | | $ | 5.32 | | | | | | $ | 4.30 | |
| Net severance, pension and benefits (credits) charges | | $ | (2,170) | | $ | 539 | | $ | (1,631) | | (0.39) | | | $ | 1,831 | | $ | (451) | | $ | 1,380 | | 0.33 | |
| Net (gain) loss from dispositions of assets and businesses | | (837) | | — | | (837) | | (0.20) | | | 119 | | 2 | | 121 | | 0.03 | |
| Net early debt redemption costs | | 3,541 | | (917) | | 2,624 | | 0.63 | | | 102 | | (26) | | 76 | | 0.02 | |
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| Loss on spectrum licenses | | 223 | | (56) | | 167 | | 0.04 | | | 1,195 | | (281) | | 914 | | 0.22 | |
| | $ | 757 | | $ | (434) | | $ | 323 | | $ | 0.08 | | | $ | 3,247 | | $ | (756) | | $ | 2,491 | | $ | 0.60 | |
| Adjusted EPS | | | | | $ | 5.39 | | | | | | $ | 4.90 | |
| Year over year change % | | | | | 10.0 | % | | | | | |
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Note: Adjusted EPS may not add due to rounding.
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| Free Cash Flow | | | | | |
| (dollars in millions) | |
| Unaudited | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 | |
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| Net Cash Provided by Operating Activities | | $ | 39,539 | | | $ | 41,768 | | |
| Capital expenditures (including capitalized software) | | (20,286) | | | (18,192) | | |
| Free Cash Flow | | $ | 19,253 | | | $ | 23,576 | | |
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Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
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| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 |
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| Operating Income | | $ | 7,349 | | | $ | 7,073 | | | $ | 29,955 | | | $ | 28,856 | |
| Add Depreciation and amortization expense | | 3,000 | | | 2,864 | | | 11,679 | | | 11,395 | |
| Segment EBITDA | | $ | 10,349 | | | $ | 9,937 | | | $ | 41,634 | | | $ | 40,251 | |
| Year over year change % | | 4.1 | % | | | | 3.4 | % | | |
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| Total operating revenues | | $ | 25,697 | | | $ | 23,919 | | | $ | 95,300 | | | $ | 88,533 | |
| Operating Income Margin | | 28.6 | % | | 29.6 | % | | 31.4 | % | | 32.6 | % |
| Segment EBITDA Margin | | 40.3 | % | | 41.5 | % | | 43.7 | % | | 45.5 | % |
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Business
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| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 12/31/20 | | 12 Mos. Ended 12/31/21 | | 12 Mos. Ended 12/31/20 |
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| Operating Income | | $ | 796 | | | $ | 950 | | | $ | 3,437 | | | $ | 3,773 | |
| Add Depreciation and amortization expense | | 1,038 | | | 1,031 | | | 4,084 | | | 4,086 | |
| Segment EBITDA | | $ | 1,834 | | | $ | 1,981 | | | $ | 7,521 | | | $ | 7,859 | |
| Year over year change % | | (7.4) | % | | | | (4.3) | % | | |
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| Total operating revenues | | $ | 7,810 | | | $ | 8,050 | | | $ | 31,042 | | | $ | 30,962 | |
| Operating Income Margin | | 10.2 | % | | 11.8 | % | | 11.1 | % | | 12.2 | % |
| Segment EBITDA Margin | | 23.5 | % | | 24.6 | % | | 24.2 | % | | 25.4 | % |
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