Exhibit 99
News Release
| | | | | |
| FOR IMMEDIATE RELEASE | Media contacts: |
| October 21, 2022 | Kim Ancin |
| 908-559-3227 |
| kimberly.ancin@verizon.com |
| |
| Eric Wilkens |
| 201-572-9317 |
| eric.wilkens@verizon.com |
Verizon reports 3Q results marked by revenue growth momentum
Sequential improvement in Verizon Consumer
postpaid phone gross additions
Fifth consecutive quarter that Verizon Business reported more than 150,000 postpaid phone net additions
3Q 2022 highlights
Consolidated:
•$1.17 in earnings per share (EPS), compared with $1.55 in third-quarter 2021; adjusted EPS1, excluding special items, of $1.32, compared with $1.42 in third-quarter 20212.
•Total revenue of $34.2 billion, an increase of 4.0 percent from third-quarter 2021.
•Net income of $5.0 billion, a decrease of 23.3 percent from third-quarter 2021, and adjusted EBITDA1 of $12.2 billion, down 0.4 percent year over year.
Total Wireless:
•Total wireless service revenue of $18.8 billion, a 10.0 percent increase year over year.
•Total retail postpaid churn of 1.17 percent, and retail postpaid phone churn of 0.92 percent.
•Postpaid phone net additions of 8,000.
Total Broadband:
•Total broadband net additions of 377,000, including 342,000 fixed wireless net additions, reflecting a strong demand for reliable and high-value broadband offerings. Total broadband net additions increased 109,000 from second-quarter 2022, and fixed wireless net additions increased 86,000 from second-quarter 2022.
•More than 40 million households covered by fixed wireless in third-quarter 2022, including over 30 million households covered by 5G Ultra Wideband.
•61,000 Fios Internet net additions, an increase from 36,000 Fios Internet net additions in second-quarter 2022.
NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported its third-quarter 2022 results.
"We took a number of actions in the third quarter that helped drive improved operational and financial performance, but we know there's still more work to be done," said Verizon Chairman and CEO Hans Vestberg. "The pricing actions we took earlier this year, as well as our new cost savings program, show that we are being deliberate and strategic in our decisions to strengthen our business. At the same time, we are focused on executing our 5G strategy, as we are covering every major market and accelerating our C-Band network build. We are on track to reach 200 million POPs within first-quarter 2023."
For third-quarter 2022, Verizon reported EPS of $1.17, compared with $1.55 in third-quarter 2021. On an adjusted basis1, excluding special items, EPS was $1.32 in third-quarter 2022, compared with adjusted EPS1 of $1.42 in third-quarter 20212.
Third-quarter 2022 EPS included a pre-tax loss from special items of approximately $881 million. This included a net pre-tax charge of approximately $645 million primarily related to a mark-to-market adjustment for pension liabilities, and the impacts of amortization of intangible assets related to TracFone and other acquisitions of $236 million.
"The actions we have taken in the previous two quarters are gaining traction in the marketplace," said Verizon Chief Financial Officer Matt Ellis. “We expect that we will be able to build on this momentum into the future. Our financial discipline, combined with our healthy balance sheet, enabled us to increase our dividend for a 16th consecutive year, which is the longest current streak of dividend increases in the U.S. telecom industry."
Consolidated results
•Total consolidated operating revenue in third-quarter 2022 of $34.2 billion, up 4.0 percent from third-quarter 2021. Wireless service revenue growth and higher wireless equipment revenue more than offset wireline declines and the net impact of merger and acquisition (M&A) activity in 2021.
•Total wireless service revenue growth of 10.0 percent year over year, primarily driven by the company's ownership of TracFone, continued effectiveness in its premium Unlimited strategy and ongoing strength in Business volumes.
•Verizon is focused on continuously improving operating efficiencies and mitigating inflation impacts, and has started a new cost savings program that is expected to provide a reduction in annual costs of between $2 billion and $3 billion by 2025.
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•Net income of $5.0 billion, a decrease of 23.3 percent from third-quarter 2021, and adjusted EBITDA1 of $12.2 billion, a decline of 0.4 percent year over year.
•Year-to-date cash flow from operating activities totaled $28.2 billion, compared with $31.2 billion in 2021. The reduction was primarily due to working capital impacts from higher device activations, and increased inventory levels.
•Capital expenditures year-to-date were $15.8 billion, including C-Band spending of $4.5 billion.
•Free cash flow1 year to date was $12.4 billion.
•Verizon's unsecured debt as of the end of third-quarter 2022 decreased by $1.1 billion sequentially to $131.4 billion. The company's net unsecured debt1 balance decreased sequentially by $1.3 billion to $129.3 billion, and its net unsecured debt to adjusted EBITDA ratio1 at quarter-end was approximately 2.7 times.
Verizon Consumer results
•Total Verizon Consumer revenue was $25.8 billion, an increase of 10.8 percent year over year, driven by wireless service revenue growth and higher equipment revenue.
•Wireless service revenue increased 11.0 percent year over year, driven by the inclusion of TracFone, core wireless service revenue growth and the impact of pricing actions.
•Consumer wireless retail postpaid churn was 1.10 percent in third-quarter 2022, and wireless retail postpaid phone churn was 0.88 percent.
•In third-quarter 2022, Consumer reported 189,000 wireless retail postpaid phone net losses, due to elevated churn partially as a result of recent pricing actions. Consumer ended third-quarter 2022 with nearly 53 percent of its postpaid wireless phone customers having 5G-capable devices. Consumer postpaid phone gross additions increased 1.3 percent year over year. This is a significant improvement from second-quarter 2022, when Consumer postpaid phone gross additions declined 11.3 percent year over year.
•Consumer reported 39,000 wireless retail prepaid net additions in third-quarter 2022, as TracFone reported positive net additions for the first time since first-quarter 2021.3
•Consumer reported 234,000 fixed wireless net additions and 58,000 Fios Internet net additions in third-quarter 2022. Consumer Fios revenue was $2.9 billion in third-quarter 2022, an increase of 0.3 percent year over year.
•In third-quarter 2022, Consumer operating income was $7.3 billion, a decrease of 3.2 percent year over year, and segment operating income margin was 28.4 percent, a decrease from 32.5 percent in third-quarter 2021. Segment EBITDA1 in third-quarter 2022 was $10.6 billion, an increase of 0.7 percent year over year. The pricing actions and the inclusion of TracFone results more than offset pressures from higher promotional activity and the impact of inflation. Segment EBITDA margin1 was 40.9 percent, a decrease from 45.0 percent in third-quarter 2021.
Verizon Business results
•Total Verizon Business revenue was $7.8 billion in third-quarter 2022, an increase of 1.9 percent year over year.
•Business wireless service revenue was $3.3 billion, an increase of 5.7 percent year over year. This increase was the result of pricing actions and continued growth in Business' customer base.
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•Business reported 360,000 wireless retail postpaid net additions in third-quarter 2022, including 197,000 postpaid phone net additions. This was the fifth consecutive quarter that Business reported more than 150,000 postpaid phone net additions. Global Enterprise delivered its best ever phone net addition performance, and Small and Medium Business and Public Sector both reported year over year double digit phone gross addition growth.
•Business wireless retail postpaid churn was 1.42 percent in third-quarter 2022, and wireless retail postpaid phone churn was 1.10 percent.
•Business reported 108,000 fixed wireless net additions in third-quarter 2022.
•In third-quarter 2022, Verizon Business operating income was $698 million, a decrease of 21.2 percent year over year, and segment operating income margin was 8.9 percent, a decrease from 11.5 percent in third-quarter 2021. Segment EBITDA1 was $1.8 billion in third-quarter 2022, a decrease of 6.7 percent year over year. In addition to pressure from wireline, Business experienced higher growth-related costs as wireless sales volumes increased 15 percent year over year. Segment EBITDA margin1 was 22.7 percent, a decrease from 24.8 percent in third-quarter 2021.
Outlook and guidance
Verizon continues to expect the following results for full-year 2022:
•Reported wireless service revenue growth4 of 8.5 to 9.5 percent.
•Reported service and other revenue growth of minus 1 percent to flat.
•Adjusted EBITDA1 growth of minus 1.5 percent to flat.
•Adjusted EPS1 of $5.10 to $5.25.
•Adjusted effective income tax rate1 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. 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.
1Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2Adjusted EPS for the prior year period has been reclassified to conform to current period presentation.
3Wireless retail prepaid net additions exclude the impact primarily related to the shutdown of a competitor’s 3G network resulting in approximately 102,000 retail prepaid disconnects in the third quarter of 2022.
4Reported wireless service revenue growth represents the sum of Consumer and Business segments.
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, including inflation in the markets in which we operate; 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 9/30/22 | | 3 Mos. Ended 9/30/21 | | %
Change | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service revenues and other | | $ | 27,666 | | | $ | 27,565 | | | 0.4 | | $ | 81,999 | | | $ | 83,709 | | | (2.0) |
| Wireless equipment revenues | | 6,575 | | | 5,350 | | | 22.9 | | 19,585 | | | 15,837 | | | 23.7 |
| Total Operating Revenues | | 34,241 | | | 32,915 | | | 4.0 | | 101,584 | | | 99,546 | | | 2.0 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 7,293 | | | 7,855 | | | (7.2) | | 21,452 | | | 24,199 | | | (11.4) |
| Cost of wireless equipment | | 7,308 | | | 5,673 | | | 28.8 | | 21,919 | | | 17,106 | | | 28.1 |
| Selling, general and administrative expense | | 7,422 | | | 6,521 | | | 13.8 | | 22,090 | | | 21,246 | | | 4.0 |
| Depreciation and amortization expense | | 4,324 | | | 3,961 | | | 9.2 | | 12,881 | | | 12,155 | | | 6.0 |
| | | | | | | | | | | | |
| Total Operating Expenses | | 26,347 | | | 24,010 | | | 9.7 | | 78,342 | | | 74,706 | | | 4.9 |
| | | | | | | | | | | | |
| Operating Income | | 7,894 | | | 8,905 | | | (11.4) | | 23,242 | | | 24,840 | | | (6.4) |
| Equity in earnings of unconsolidated businesses | | 2 | | | 1 | | | * | | 40 | | | 10 | | | * |
| Other income (expense), net | | (439) | | | 269 | | | * | | (1,314) | | | 1,172 | | | * |
| Interest expense | | (937) | | | (801) | | | 17.0 | | (2,508) | | | (2,746) | | | (8.7) |
| Income Before Provision For Income Taxes | | 6,520 | | | 8,374 | | | (22.1) | | 19,460 | | | 23,276 | | | (16.4) |
| Provision for income taxes | | (1,496) | | | (1,820) | | | (17.8) | | (4,410) | | | (5,395) | | | (18.3) |
| Net Income | | $ | 5,024 | | | $ | 6,554 | | | (23.3) | | $ | 15,050 | | | $ | 17,881 | | | (15.8) |
| | | | | | | | | | | | |
| Net income attributable to noncontrolling interests | | $ | 124 | | | $ | 147 | | | (15.6) | | $ | 371 | | | $ | 429 | | | (13.5) |
| Net income attributable to Verizon | | 4,900 | | | 6,407 | | | (23.5) | | 14,679 | | | 17,452 | | | (15.9) |
| Net Income | | $ | 5,024 | | | $ | 6,554 | | | (23.3) | | $ | 15,050 | | | $ | 17,881 | | | (15.8) |
| | | | | | | | | | | | |
| Basic Earnings Per Common Share | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 1.17 | | | $ | 1.55 | | | (24.5) | | $ | 3.49 | | | $ | 4.21 | | | (17.1) |
| Weighted-average shares outstanding (in millions) | | 4,202 | | | 4,142 | | | | | 4,201 | | | 4,141 | | | |
| | | | | | | | | | | | |
Diluted Earnings Per Common Share (1) | | | | | | | | | | | | |
| Net income attributable to Verizon | | $ | 1.17 | | | $ | 1.55 | | | (24.5) | | $ | 3.49 | | | $ | 4.21 | | | (17.1) |
| Weighted-average shares outstanding (in millions) | | 4,204 | | | 4,144 | | | | | 4,203 | | | 4,143 | | | |
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 | | 9/30/22 | | 12/31/21 | | $ Change |
| | | | | | |
| Assets | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 2,082 | | | $ | 2,921 | | | $ | (839) | |
| Accounts receivable | | 24,475 | | | 24,742 | | | (267) | |
| Less Allowance for credit losses | | 805 | | | 896 | | | (91) | |
| | | | | | |
| Accounts receivable, net | | 23,670 | | | 23,846 | | | (176) | |
| Inventories | | 3,133 | | | 3,055 | | | 78 | |
| | | | | | |
| Prepaid expenses and other | | 10,861 | | | 6,906 | | | 3,955 | |
| Total current assets | | 39,746 | | | 36,728 | | | 3,018 | |
| | | | | | |
| Property, plant and equipment | | 300,870 | | | 289,897 | | | 10,973 | |
| Less Accumulated depreciation | | 197,866 | | | 190,201 | | | 7,665 | |
| Property, plant and equipment, net | | 103,004 | | | 99,696 | | | 3,308 | |
| Investments in unconsolidated businesses | | 1,083 | | | 1,061 | | | 22 | |
| Wireless licenses | | 149,292 | | | 147,619 | | | 1,673 | |
| | | | | | |
| Goodwill | | 28,548 | | | 28,603 | | | (55) | |
| Other intangible assets, net | | 11,196 | | | 11,677 | | | (481) | |
| Operating lease right-of-use assets | | 26,588 | | | 27,883 | | | (1,295) | |
| Other assets | | 15,633 | | | 13,329 | | | 2,304 | |
| Total assets | | $ | 375,090 | | | $ | 366,596 | | | $ | 8,494 | |
| | | | | | |
| Liabilities and Equity | | | | | | |
| Current liabilities | | | | | | |
| Debt maturing within one year | | $ | 14,995 | | | $ | 7,443 | | | $ | 7,552 | |
| Accounts payable and accrued liabilities | | 22,235 | | | 24,833 | | | (2,598) | |
| | | | | | |
| Current operating lease liabilities | | 3,961 | | | 3,859 | | | 102 | |
| Other current liabilities | | 11,950 | | | 11,025 | | | 925 | |
| Total current liabilities | | 53,141 | | | 47,160 | | | 5,981 | |
| | | | | | |
| Long-term debt | | 132,912 | | | 143,425 | | | (10,513) | |
| Employee benefit obligations | | 15,912 | | | 15,410 | | | 502 | |
| Deferred income taxes | | 42,094 | | | 40,685 | | | 1,409 | |
| Non-current operating lease liabilities | | 22,175 | | | 23,203 | | | (1,028) | |
| Other liabilities | | 20,073 | | | 13,513 | | | 6,560 | |
| Total long-term liabilities | | 233,166 | | | 236,236 | | | (3,070) | |
| | | | | | |
| Equity | | | | | | |
| Common stock | | 429 | | | 429 | | | — | |
| Additional paid in capital | | 13,467 | | | 13,861 | | | (394) | |
| Retained earnings | | 78,545 | | | 71,993 | | | 6,552 | |
| Accumulated other comprehensive loss | | (1,700) | | | (927) | | | (773) | |
| Common stock in treasury, at cost | | (4,015) | | | (4,104) | | | 89 | |
| Deferred compensation – employee stock ownership plans and other | | 742 | | | 538 | | | 204 | |
| Noncontrolling interests | | 1,315 | | | 1,410 | | | (95) | |
| Total equity | | 88,783 | | | 83,200 | | | 5,583 | |
| Total liabilities and equity | | $ | 375,090 | | | $ | 366,596 | | | $ | 8,494 | |
Verizon Communications Inc.
Consolidated - Selected Financial and Operating Statistics
| | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 9/30/22 | | 12/31/21 |
| | | | |
| Total debt | | $ | 147,907 | | | $ | 150,868 | |
| | | | |
Net unsecured debt(1) | | $ | 129,315 | | | $ | 133,745 | |
| | | | |
Net unsecured debt / Consolidated Adjusted EBITDA(1)(2) | | 2.7x | | 2.8x |
| Common shares outstanding end of period (in millions) | | 4,200 | | | 4,198 | |
| Total employees (‘000) | | 119.5 | | | 118.4 | |
| Quarterly cash dividends declared per common share | | $ | 0.6525 | | | $ | 0.6400 | |
Footnotes:
(1)Non-GAAP financial measure.
(2)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 | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | $ Change |
| | | | | | |
| Cash Flows from Operating Activities | | | | | | |
| Net Income | | $ | 15,050 | | | $ | 17,881 | | | $ | (2,831) | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | |
| Depreciation and amortization expense | | 12,881 | | | 12,155 | | | 726 | |
| Employee retirement benefits | | 479 | | | (1,928) | | | 2,407 | |
| Deferred income taxes | | 1,595 | | | 2,970 | | | (1,375) | |
| Provision for expected credit losses | | 1,048 | | | 604 | | | 444 | |
| Equity in losses (earnings) of unconsolidated businesses, net of dividends received | | (13) | | | 32 | | | (45) | |
| | | | | | |
| | | | | | |
| Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses | | (458) | | | 603 | | | (1,061) | |
| | | | | | |
| Other, net | | (2,383) | | | (1,155) | | | (1,228) | |
| Net cash provided by operating activities | | 28,199 | | | 31,162 | | | (2,963) | |
| | | | | | |
| Cash Flows from Investing Activities | | | | | | |
| Capital expenditures (including capitalized software) | | (15,811) | | | (13,861) | | | (1,950) | |
| Cash received (paid) related to acquisitions of businesses, net of cash acquired | | 248 | | | (459) | | | 707 | |
| Acquisitions of wireless licenses | | (2,890) | | | (47,027) | | | 44,137 | |
| Collateral payments related to derivative contracts, net of repayments | | (4,857) | | | (15) | | | (4,842) | |
| Proceeds from disposition of business | | 33 | | | 4,122 | | | (4,089) | |
| Other, net | | (43) | | | 222 | | | (265) | |
| Net cash used in investing activities | | (23,320) | | | (57,018) | | | 33,698 | |
| | | | | | |
| Cash Flows from Financing Activities | | | | | | |
| Proceeds from long-term borrowings | | 4,605 | | | 32,482 | | | (27,877) | |
| Proceeds from asset-backed long-term borrowings | | 5,939 | | | 2,695 | | | 3,244 | |
| Net proceeds from short-term commercial paper | | 4,514 | | | — | | | 4,514 | |
| Repayments of long-term borrowings and finance lease obligations | | (8,001) | | | (7,904) | | | (97) | |
| Repayments of asset-backed long-term borrowings | | (3,647) | | | (3,887) | | | 240 | |
| Dividends paid | | (8,066) | | | (7,797) | | | (269) | |
| Other, net | | (797) | | | (2,120) | | | 1,323 | |
| Net cash provided by (used in) financing activities | | (5,453) | | | 13,469 | | | (18,922) | |
| | | | | | |
| Decrease in cash, cash equivalents and restricted cash | | (574) | | | (12,387) | | | 11,813 | |
| Cash, cash equivalents and restricted cash, beginning of period | | 4,161 | | | 23,498 | | | (19,337) | |
| Cash, cash equivalents and restricted cash, end of period | | $ | 3,587 | | | $ | 11,111 | | | $ | (7,524) | |
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 9/30/22 | | 3 Mos. Ended 9/30/21 | | %
Change | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Service | | $ | 18,421 | | | $ | 16,891 | | | 9.1 | | $ | 54,696 | | | $ | 50,169 | | | 9.0 |
| Wireless equipment | | 5,558 | | | 4,530 | | | 22.7 | | 16,640 | | | 13,461 | | | 23.6 |
| Other | | 1,861 | | | 1,907 | | | (2.4) | | 5,400 | | | 5,973 | | | (9.6) |
| Total Operating Revenues | | 25,840 | | | 23,328 | | | 10.8 | | 76,736 | | | 69,603 | | | 10.2 |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 4,566 | | | 4,149 | | | 10.1 | | 13,296 | | | 12,330 | | | 7.8 |
| Cost of wireless equipment | | 5,963 | | | 4,611 | | | 29.3 | | 17,997 | | | 13,857 | | | 29.9 |
| Selling, general and administrative expense | | 4,730 | | | 4,060 | | | 16.5 | | 14,020 | | | 12,131 | | | 15.6 |
| Depreciation and amortization expense | | 3,232 | | | 2,918 | | | 10.8 | | 9,605 | | | 8,679 | | | 10.7 |
| Total Operating Expenses | | 18,491 | | | 15,738 | | | 17.5 | | 54,918 | | | 46,997 | | | 16.9 |
| | | | | | | | | | | | |
| Operating Income | | $ | 7,349 | | | $ | 7,590 | | | (3.2) | | $ | 21,818 | | | $ | 22,606 | | | (3.5) |
| Operating Income Margin | | 28.4 | % | | 32.5 | % | | | | 28.4 | % | | 32.5 | % | | |
| | | | | | | | | | | | |
Segment EBITDA(1) | | $ | 10,581 | | | $ | 10,508 | | | 0.7 | | $ | 31,423 | | | $ | 31,285 | | | 0.4 |
Segment EBITDA Margin(1) | | 40.9 | % | | 45.0 | % | | | | 40.9 | % | | 44.9 | % | | |
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Consumer - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 9/30/22 | | 9/30/21 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | | | | | | | 91,478 | | | 90,916 | | | 0.6 |
Wireless retail prepaid (1) (2) | | | | | | | | 23,076 | | | 4,072 | | | * |
| Total wireless retail | | | | | | | | 114,554 | | | 94,988 | | | 20.6 |
| | | | | | | | | | | | |
| Wireless retail postpaid phones | | | | | | | | 74,997 | | | 75,388 | | | (0.5) |
| | | | | | | | | | | | |
| Fios video | | | | | | | | 3,314 | | | 3,642 | | | (9.0) |
| Fios internet | | | | | | | | 6,684 | | | 6,490 | | | 3.0 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Fixed wireless access (FWA) broadband | | | | | | | | 621 | | | 63 | | | * |
| Wireline broadband | | | | | | | | 6,976 | | | 6,858 | | | 1.7 |
| Total broadband | | | | | | | | 7,597 | | | 6,921 | | | 9.8 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/22 | | 3 Mos. Ended 9/30/21 | | %
Change | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 3,045 | | | 2,701 | | | 12.7 | | 8,148 | | | 7,600 | | | 7.2 |
| | | | | | | | | | | | |
Net Additions Detail (‘000): | | | | | | | | | | | | |
Wireless retail postpaid (3) | | 28 | | | 423 | | | (93.4) | | (14) | | | 447 | | | * |
Wireless retail prepaid (1) (3) (4) | | 39 | | | (4) | | | * | | (270) | | | 33 | | | * |
Total wireless retail (3) | | 67 | | | 419 | | | (84.0) | | (284) | | | 480 | | | * |
| | | | | | | | | | | | |
Wireless retail postpaid phones (3) | | (189) | | | 267 | | | * | | (696) | | | 239 | | | * |
| | | | | | | | | | | | |
| Fios video | | (95) | | | (68) | | | (39.7) | | (259) | | | (212) | | | (22.2) |
| Fios internet | | 58 | | | 98 | | | (40.8) | | 143 | | | 288 | | | (50.3) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
FWA broadband (3) | | 234 | | | 26 | | | * | | 514 | | | 49 | | | * |
| Wireline broadband | | 38 | | | 75 | | | (49.3) | | 88 | | | 211 | | | (58.3) |
| | | | | | | | | | | | |
| Total broadband | | 272 | | | 101 | | | * | | 602 | | | 260 | | | * |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 1.10 | % | | 0.84 | % | | | | 0.99 | % | | 0.88 | % | | |
| Wireless retail postpaid phones | | 0.88 | % | | 0.67 | % | | | | 0.80 | % | | 0.69 | % | | |
Wireless retail prepaid (1) (4) | | 3.90 | % | | 4.21 | % | | | | 3.83 | % | | 4.18 | % | | |
| Wireless retail | | 1.66 | % | | 0.98 | % | | | | 1.57 | % | | 1.02 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 15,517 | | | $ | 13,982 | | | 11.0 | | $ | 45,970 | | | $ | 41,460 | | | 10.9 |
| Fios revenues | | $ | 2,902 | | | $ | 2,893 | | | 0.3 | | $ | 8,708 | | | $ | 8,648 | | | 0.7 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Verizon Communications Inc.
Consumer - Selected Operating Statistics (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/22 | | 3 Mos. Ended 9/30/21 | | %
Change | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | %
Change |
| | | | | | | | | | | | |
| Other Wireless Statistics: | | | | | | | | | | | | |
Wireless retail postpaid ARPA (5) | | $ | 127.76 | | | $ | 123.04 | | | 3.8 | | $ | 125.29 | | | $ | 121.71 | | | 2.9 |
| Wireless retail postpaid upgrade rate | | 5.1 | % | | 4.7 | % | | | | | | | | |
Wireless retail postpaid accounts (‘000) (6) | | | | | | | | 33,251 | | | 33,640 | | | (1.2) |
Wireless retail postpaid connections per account (6) | | | | | | | | 2.75 | | | 2.70 | | | 1.9 |
Wireless retail prepaid ARPU (1) (7) | | $ | 31.18 | | | $ | 35.75 | | | (12.8) | | $ | 31.11 | | | $ | 35.70 | | | (12.9) |
| | | | | | | | | | | | |
Footnotes:
(1) Acquisition of TracFone Wireless, Inc. was completed on November 23, 2021.
(2) Reflects a decline in the customer base for wireless retail prepaid connections of approximately 504,000 as of September 30, 2022, primarily related to the shutdown of our competitors' 3G networks.
(3) Connection net additions include certain adjustments.
(4) Excludes the impact primarily related to the shutdown of our competitors' 3G networks resulting in approximately 402,000 retail prepaid disconnects in the second quarter of 2022 and 102,000 retail prepaid disconnects in the third quarter of 2022.
(5) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(6) Statistics presented as of end of period.
(7) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
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 9/30/22 | | 3 Mos. Ended 9/30/21 | | %
Change | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | %
Change |
| | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | |
| Small and Medium Business | | $ | 3,196 | | | $ | 2,937 | | | 8.8 | | $ | 9,329 | | | $ | 8,662 | | | 7.7 |
| Global Enterprise | | 2,449 | | | 2,552 | | | (4.0) | | 7,311 | | | 7,694 | | | (5.0) |
| | | | | | | | | | | | |
| Public Sector and Other | | 1,531 | | | 1,547 | | | (1.0) | | 4,587 | | | 4,807 | | | (4.6) |
| Wholesale | | 661 | | | 653 | | | 1.2 | | 1,945 | | | 2,069 | | | (6.0) |
| Total Operating Revenues | | 7,837 | | | 7,689 | | | 1.9 | | 23,172 | | | 23,232 | | | (0.3) |
| | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | |
| Cost of services | | 2,653 | | | 2,647 | | | 0.2 | | 7,818 | | | 8,066 | | | (3.1) |
| Cost of wireless equipment | | 1,344 | | | 1,061 | | | 26.7 | | 3,922 | | | 3,248 | | | 20.8 |
| Selling, general and administrative expense | | 2,063 | | | 2,077 | | | (0.7) | | 6,172 | | | 6,231 | | | (0.9) |
| Depreciation and amortization expense | | 1,079 | | | 1,018 | | | 6.0 | | 3,214 | | | 3,046 | | | 5.5 |
| Total Operating Expenses | | 7,139 | | | 6,803 | | | 4.9 | | 21,126 | | | 20,591 | | | 2.6 |
| | | | | | | | | | | | |
| Operating Income | | $ | 698 | | | $ | 886 | | | (21.2) | | $ | 2,046 | | | $ | 2,641 | | | (22.5) |
| Operating Income Margin | | 8.9 | % | | 11.5 | % | | | | 8.8 | % | | 11.4 | % | | |
| | | | | | | | | | | | |
Segment EBITDA(1) | | $ | 1,777 | | | $ | 1,904 | | | (6.7) | | $ | 5,260 | | | $ | 5,687 | | | (7.5) |
Segment EBITDA Margin(1) | | 22.7 | % | | 24.8 | % | | | | 22.7 | % | | 24.5 | % | | |
Footnotes:
(1) Non-GAAP financial measure.
The segment financial results and metrics above exclude the effects of special items (other than the effects of acquisition-related intangible asset amortization), which the Company’s chief operating decision maker does not consider in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
Verizon Communications Inc.
Business - Selected Operating Statistics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Unaudited | | | | | | | | 9/30/22 | | 9/30/21 | | %
Change |
| | | | | | | | | | | | |
| Connections (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | | | | | | | 28,584 | | | 26,998 | | | 5.9 |
| Wireless retail postpaid phones | | | | | | | | 17,795 | | | 16,866 | | | 5.5 |
| | | | | | | | | | | | |
| Fios video | | | | | | | | 69 | | | 72 | | | (4.2) |
| Fios internet | | | | | | | | 370 | | | 352 | | | 5.1 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| FWA broadband | | | | | | | | 442 | | | 76 | | | * |
| Wireline broadband | | | | | | | | 471 | | | 479 | | | (1.7) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total broadband | | | | | | | | 913 | | | 555 | | | 64.5 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/22 | | 3 Mos. Ended 9/30/21 | | %
Change | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | %
Change |
| | | | | | | | | | | | |
| Gross Additions (‘000): | | | | | | | | | | | | |
| Wireless retail postpaid | | 1,566 | | | 1,314 | | | 19.2 | | 4,650 | | | 3,675 | | | 26.5 |
| | | | | | | | | | | | |
| Net Additions Detail (‘000): | | | | | | | | | | | | |
Wireless retail postpaid (1) | | 360 | | | 276 | | | 30.4 | | 1,185 | | | 610 | | | 94.3 |
Wireless retail postpaid phones (1) | | 197 | | | 162 | | | 21.6 | | 680 | | | 287 | | | * |
| | | | | | | | | | | | |
| Fios video | | (1) | | | — | | | * | | (2) | | | (1) | | | * |
| Fios internet | | 3 | | | 6 | | | (50.0) | | 14 | | | 17 | | | (17.6) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
FWA broadband (1) | | 108 | | | 29 | | | * | | 278 | | | 46 | | | * |
Wireline broadband (1) | | (3) | | | (1) | | | * | | (6) | | | (3) | | | * |
| | | | | | | | | | | | |
| Total broadband | | 105 | | | 28 | | | * | | 272 | | | 43 | | | * |
| | | | | | | | | | | | |
| Churn Rate: | | | | | | | | | | | | |
| Wireless retail postpaid | | 1.42 | % | | 1.29 | % | | | | 1.38 | % | | 1.28 | % | | |
| Wireless retail postpaid phones | | 1.10 | % | | 1.04 | % | | | | 1.08 | % | | 1.04 | % | | |
| | | | | | | | | | | | |
| Revenue Statistics (in millions): | | | | | | | | | | | | |
| Wireless service revenue | | $ | 3,273 | | | $ | 3,097 | | | 5.7 | | $ | 9,580 | | | $ | 9,247 | | | 3.6 |
| Fios revenues | | $ | 304 | | | $ | 287 | | | 5.9 | | $ | 897 | | | $ | 844 | | | 6.3 |
| | | | | | | | | | | | |
| Other Operating Statistics: | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Wireless retail postpaid upgrade rate | | 3.3 | % | | 3.2 | % | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Footnotes:
(1) Connection net additions include certain adjustments.
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 | | 9/30/22 | | 9/30/21 | | % Change |
| | | | | | | | | | | | |
| Connections (‘000) | | | | | | | | | | | | |
| Retail postpaid | | | | | | | | 120,062 | | | 117,914 | | | 1.8 |
Retail prepaid (1) (2) | | | | | | | | 23,076 | | | 4,072 | | | * |
| Total retail | | | | | | | | 143,138 | | | 121,986 | | | 17.3 |
| | | | | | | | | | | | |
| Retail postpaid phones | | | | | | | | 92,792 | | | 92,254 | | | 0.6 |
| | | | | | | | | | | | |
| Unaudited | | 3 Mos. Ended 9/30/22 | | 3 Mos. Ended 9/30/21 | | %
Change | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | | %
Change |
| | | | | | | | | | | | |
Net Additions Detail (‘000) (3) | | | | | | | | | | | | |
| Retail postpaid phones | | 8 | | | 429 | | | (98.1) | | (16) | | | 526 | | | * |
| Retail postpaid | | 388 | | | 699 | | | (44.5) | | 1,171 | | | 1,057 | | | 10.8 |
Retail prepaid (1) (4) | | 39 | | | (4) | | | * | | (270) | | | 33 | | | * |
| Total retail | | 427 | | | 695 | | | (38.6) | | 901 | | | 1,090 | | | (17.3) |
| | | | | | | | | | | | |
| Account Statistics | | | | | | | | | | | | |
Retail postpaid accounts (‘000) (5) | | | | | | | | 35,034 | | | 35,285 | | | (0.7) |
Retail postpaid connections per account (5) | | | | | | | | 3.43 | | | 3.34 | | | 2.7 |
Retail postpaid ARPA (6) | | $ | 149.82 | | | $ | 143.87 | | | 4.1 | | $ | 146.73 | | | $ | 142.61 | | | 2.9 |
Retail prepaid ARPU (1) (7) | | $ | 31.18 | | | $ | 35.75 | | | (12.8) | | $ | 31.11 | | | $ | 35.70 | | | (12.9) |
| | | | | | | | | | | | |
| Churn Detail | | | | | | | | | | | | |
| Retail postpaid phone | | 0.92 | % | | 0.74 | % | | | | 0.85 | % | | 0.76 | % | | |
| Retail postpaid | | 1.17 | % | | 0.94 | % | | | | 1.08 | % | | 0.97 | % | | |
Retail prepaid (1) (4) | | 3.90 | % | | 4.21 | % | | | | 3.83 | % | | 4.18 | % | | |
| Retail | | 1.62 | % | | 1.05 | % | | | | 1.53 | % | | 1.08 | % | | |
| | | | | | | | | | | | |
| Retail Postpaid Connection Statistics | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Upgrade rate | | 4.7 | % | | 4.3 | % | | | | | | | | |
| | | | | | | | | | | | |
Revenue Statistics (in millions) (8) | | | | | | | | | | | | |
| Wireless service | | $ | 18,790 | | | $ | 17,079 | | | 10.0 | | $ | 55,550 | | | $ | 50,707 | | | 9.6 |
| Wireless equipment | | 6,575 | | | 5,350 | | | 22.9 | | 19,585 | | | 15,837 | | | 23.7 |
| Wireless other | | 1,922 | | | 1,929 | | | (0.4) | | 5,540 | | | 6,015 | | | (7.9) |
| Total Wireless | | $ | 27,287 | | | $ | 24,358 | | | 12.0 | | $ | 80,675 | | | $ | 72,559 | | | 11.2 |
Footnotes:
(1) Acquisition of TracFone Wireless, Inc. was completed on November 23, 2021.
(2) Reflects a decline in the customer base for wireless retail prepaid connections of approximately 504,000 as of September 30, 2022, primarily related to the shutdown of our competitors' 3G networks.
(3) Connection net additions include certain adjustments.
(4) Excludes the impact primarily related to the shutdown of our competitors' 3G networks resulting in approximately 402,000 retail prepaid disconnects in the second quarter of 2022 and 102,000 retail prepaid disconnects in the third quarter of 2022.
(5) Statistics presented as of end of period.
(6) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(7) Wireless retail prepaid ARPU - average service revenue per unit from retail prepaid connections.
(8) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.
*Not meaningful
Verizon Communications Inc.
Non-GAAP Reconciliations - Consolidated Verizon
Consolidated EBITDA and Consolidated Adjusted EBITDA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) |
| Unaudited | | | | 3 Mos. Ended 9/30/22 | | 3 Mos. Ended 6/30/22 | | 3 Mos. Ended 3/31/22 | | 3 Mos. Ended 12/31/21 | | 3 Mos. Ended 9/30/21 | | 3 Mos. Ended 6/30/21 | | 3 Mos. Ended 3/31/21 |
| | | | | | | | | | | | | | | | |
| Consolidated Net Income | | | | $ | 5,024 | | | $ | 5,315 | | | $ | 4,711 | | | $ | 4,737 | | | $ | 6,554 | | | $ | 5,949 | | | $ | 5,378 | |
| Add: | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | | 1,496 | | | 1,542 | | | 1,372 | | | 1,407 | | | 1,820 | | | 1,875 | | | 1,700 | |
| Interest expense | | | | 937 | | | 785 | | | 786 | | | 739 | | | 801 | | | 844 | | | 1,101 | |
Depreciation and amortization expense (1) | | | | 4,324 | | | 4,321 | | | 4,236 | | | 4,051 | | | 3,961 | | | 4,020 | | | 4,174 | |
| Consolidated EBITDA | | | | $ | 11,781 | | | $ | 11,963 | | | $ | 11,105 | | | $ | 10,934 | | | $ | 13,136 | | | $ | 12,688 | | | $ | 12,353 | |
| | | | | | | | | | | | | | | | |
| Add/(subtract): | | | | | | | | | | | | | | | | |
Other (income) expense, net (2) | | | | $ | 439 | | | $ | (49) | | | $ | 924 | | | $ | 860 | | | $ | (269) | | | $ | (502) | | | $ | (401) | |
Equity in losses (earnings) of unconsolidated businesses (3) | | | | (2) | | | (41) | | | 3 | | | (135) | | | (1) | | | (1) | | | (8) | |
| | | | | | | | | | | | | | | | |
| Severance charges | | | | — | | | — | | | — | | | 106 | | | 103 | | | — | | | — | |
| | | | | | | | | | | | | | | | |
| Loss on spectrum licenses | | | | — | | | — | | | — | | | — | | | — | | | — | | | 223 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Net gain from disposition of business | | | | — | | | — | | | — | | | — | | | (706) | | | — | | | — | |
| | | | 437 | | | (90) | | | 927 | | | 831 | | | (873) | | | (503) | | | (186) | |
| | | | | | | | | | | | | | | | |
| Consolidated Adjusted EBITDA | | | | $ | 12,218 | | | $ | 11,873 | | | $ | 12,032 | | | $ | 11,765 | | | $ | 12,263 | | | $ | 12,185 | | | $ | 12,167 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Consolidated Adjusted EBITDA - Year Over Year Change | | | | (0.4) | % | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Footnotes:
(1) Includes Amortization of acquisition-related intangible assets.
(2) Includes Pension and benefits remeasurement adjustments and 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 | | 9/30/22 | | 6/30/22 | | | | 12/31/21 | | |
| | | | | | | | | | |
| Debt maturing within one year | | $ | 14,995 | | | $ | 12,873 | | | | | $ | 7,443 | | | |
| Long-term debt | | 132,912 | | | 136,184 | | | | | 143,425 | | | |
| Total Debt | | 147,907 | | | 149,057 | | | | | 150,868 | | | |
| Less Secured debt | | 16,510 | | | 16,572 | | | | | 14,202 | | | |
| Unsecured Debt | | 131,397 | | | 132,485 | | | | | 136,666 | | | |
| Less Cash and cash equivalents | | 2,082 | | | 1,857 | | | | | 2,921 | | | |
| Net Unsecured Debt | | $ | 129,315 | | | $ | 130,628 | | | | | $ | 133,745 | | | |
| Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | | 2.7x | | | | | | 2.8x | | |
| Unsecured Debt - Quarter over quarter change | | $ | (1,088) | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Net Unsecured Debt - Quarter over quarter change | | $ | (1,313) | | | | | | | | | |
Verizon Communications Inc.
Adjusted Earnings per Common Share (Adjusted EPS)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions, except per share amounts) |
| Unaudited | | 3 Mos. Ended 9/30/22 | | 3 Mos. Ended 9/30/21 |
| | Pre-tax | Tax | After-Tax | | | Pre-tax | Tax | After-Tax | |
| EPS | | | | | $ | 1.17 | | | | | | $ | 1.55 | |
| Amortization of acquisition-related intangible assets | | $ | 236 | | $ | (58) | | $ | 178 | | 0.04 | | | $ | 57 | | $ | (14) | | $ | 43 | | 0.01 | |
| Severance, pension and benefits charges | | 645 | | (162) | | 483 | | 0.11 | | | 247 | | (63) | | 184 | | 0.04 | |
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| Net gain from sale of Media | | — | | — | | — | | — | | | (706) | | (30) | | (736) | | (0.18) | |
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| | $ | 881 | | $ | (220) | | $ | 661 | | $ | 0.16 | | | $ | (402) | | $ | (107) | | $ | (509) | | $ | (0.12) | |
| Adjusted EPS | | | | | $ | 1.32 | | | | | | $ | 1.42 | |
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Footnotes:
Adjusted EPS may not add due to rounding.
Certain amounts have been reclassified to conform to the current period presentation.
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| Free Cash Flow | | | | | |
| (dollars in millions) | |
| Unaudited | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 | |
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| Net Cash Provided by Operating Activities | | $ | 28,199 | | | $ | 31,162 | | |
| Capital expenditures (including capitalized software) | | (15,811) | | | (13,861) | | |
| Free Cash Flow | | $ | 12,388 | | | $ | 17,301 | | |
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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 9/30/22 | | 3 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 |
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| Operating Income | | $ | 7,349 | | | $ | 7,590 | | | $ | 21,818 | | | $ | 22,606 | |
| Add Depreciation and amortization expense | | 3,232 | | | 2,918 | | | 9,605 | | | 8,679 | |
| Segment EBITDA | | $ | 10,581 | | | $ | 10,508 | | | $ | 31,423 | | | $ | 31,285 | |
| Year over year change % | | 0.7 | % | | | | 0.4 | % | | |
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| Total operating revenues | | $ | 25,840 | | | $ | 23,328 | | | $ | 76,736 | | | $ | 69,603 | |
| Operating Income Margin | | 28.4 | % | | 32.5 | % | | 28.4 | % | | 32.5 | % |
| Segment EBITDA Margin | | 40.9 | % | | 45.0 | % | | 40.9 | % | | 44.9 | % |
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Business
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| (dollars in millions) |
| Unaudited | | 3 Mos. Ended 9/30/22 | | 3 Mos. Ended 9/30/21 | | 9 Mos. Ended 9/30/22 | | 9 Mos. Ended 9/30/21 |
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| Operating Income | | $ | 698 | | | $ | 886 | | | $ | 2,046 | | | $ | 2,641 | |
| Add Depreciation and amortization expense | | 1,079 | | | 1,018 | | | 3,214 | | | 3,046 | |
| Segment EBITDA | | $ | 1,777 | | | $ | 1,904 | | | $ | 5,260 | | | $ | 5,687 | |
| Year over year change % | | (6.7) | % | | | | (7.5) | % | | |
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| Total operating revenues | | $ | 7,837 | | | $ | 7,689 | | | $ | 23,172 | | | $ | 23,232 | |
| Operating Income Margin | | 8.9 | % | | 11.5 | % | | 8.8 | % | | 11.4 | % |
| Segment EBITDA Margin | | 22.7 | % | | 24.8 | % | | 22.7 | % | | 24.5 | % |
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