Exhibit 99.1
Frontier Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
www.frontier.com
Contact:
David Whitehouse
203-614-5708
Frontier Communications Board of Directors Affirms Annual Dividend Policy
STAMFORD, Conn., March 6, 2009 - In response to recent developments with respect
to companies reducing or suspending dividends on their common stock, Frontier
Communications Corporation (NYSE: FTR) announced today that its Board of
Directors has reaffirmed their current intention to maintain the annual dividend
of $1.00 per share on the Company's common stock.
Declarations and payment of future dividends will be at the discretion of the
Company's Board of Directors, and will depend on many factors, including the
Company's financial condition, results of operations, growth prospects, funding
requirements, applicable law, restrictions in its credit facilities and other
factors the Board of Directors deems relevant.
On its February 25, 2009 fourth-quarter earnings call, Frontier furnished
guidance on free cash flow of $460 to $485 million for the year ending December
31, 2009 and reiterated that the Company has no material debt maturing until May
2011. In light of these facts, as well as the considerations listed above, the
Frontier Board of Directors considers the targeted return of 60-70% of free cash
flow to common shareholders in the form of dividends to be an appropriate
strategy for the Company.
About Frontier Communications Corporation
Frontier Communications Corporation (NYSE: FTR) is a full-service communications
provider and one of the largest local exchange telephone companies in the
country. Under the Frontier brand name, the company offers telephone, television
and Internet services, as well as wireless data, bundled offerings, ESPN360
streaming video, security solutions and specialized bundles for small businesses
and home offices.
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Forward-Looking Statements
This presentation contains forward-looking statements that are made pursuant to
the safe harbor provisions of The Private Securities Litigation Reform Act of
1995. These statements are made on the basis of management's views and
assumptions regarding future events and business performance. Words such as
"believe," "anticipate," "expect" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements (including oral
representations) involve risks and uncertainties that may cause actual results
to differ materially from any future results, performance or achievements
expressed or implied by such statements. These risks and uncertainties are based
on a number of factors, including but not limited to: reductions in the number
of our access lines and High-Speed Internet subscribers; the effects of
competition from cable, wireless and other wireline carriers (through voice over
internet protocol (VOIP) or otherwise); reductions in switched access revenues
as a result of regulation, competition and/or technology substitutions; the
effects of greater than anticipated competition requiring new pricing, marketing
strategies or new product offerings and the risk that we will not respond on a
timely or profitable basis; the effects of changes in both general and local
economic conditions on the markets we serve, which can impact demand for our
products and services, customer purchasing decisions, collectability of revenue
and required levels of capital expenditures related to new construction of
residences and businesses; our ability to effectively manage service quality;
our ability to successfully introduce new product offerings, including our
ability to offer bundled service packages on terms that are both profitable to
us and attractive to our customers; our ability to sell enhanced and data
services in order to offset ongoing declines in revenue from local services,
switched access services and subsidies; changes in accounting policies or
practices adopted voluntarily or as required by generally accepted accounting
principles or regulators; the effects of ongoing changes in the regulation of
the communications industry as a result of federal and state legislation and
regulation, including potential changes in state rate of return limitations on
our earnings, access charges and subsidy payments, and regulatory network
upgrade and reliability requirements; our ability to effectively manage our
operations, operating expenses and capital expenditures, to pay dividends and to
reduce or refinance our debt; adverse changes in the credit markets and/or in
the ratings given to our debt securities by nationally accredited ratings
organizations, which could limit or restrict the availability of, and/or
increase the cost of financing; the effects of bankruptcies and home
foreclosures, which could result in increased bad debts; the effects of
technological changes and competition on our capital expenditures and product
and service offerings, including the lack of assurance that our ongoing network
improvements will be sufficient to meet or exceed the capabilities and quality
of competing networks; the effects of increased medical, retiree and pension
expenses and related funding requirements; changes in income tax rates, tax
laws, regulations or rulings, and/or federal or state tax assessments; further
declines in the value of our pension plan assets, which could require us to make
contributions to the pension plan beginning in 2010; the effects of state
regulatory cash management policies on our ability to transfer cash among our
subsidiaries and to the parent company; our ability to successfully renegotiate
union contracts expiring in 2009 and thereafter; our ability to pay a $1.00 per
common share dividend annually, which may be affected by our cash flow from
operations, amount of capital expenditures, debt service requirements, cash paid
for income taxes (which will increase in 2009) and our liquidity; the effects of
significantly increased cash taxes in 2009 and thereafter; the effects of any
unfavorable outcome with respect to any of our current or future legal,
governmental or regulatory proceedings, audits or disputes; the possible impact
of adverse changes in political or other external factors over which we have no
control; and the effects of hurricanes, ice storms and other severe weather.
These and other uncertainties related to our business are described in greater
detail in our filings with the Securities and Exchange Commission, including our
reports on Forms 10-K and 10-Q. We undertake no obligation to publicly update or
revise any forward-looking statement or to make any other forward-looking
statements, whether as a result of new information, future events or otherwise
unless required to do so by securities laws.
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