4th Quarter 2018 Earnings Results
January 29, 2019
"Safe Harbor" statement
NOTE: In this presentation 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" 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: adverse conditions in the U.S. and international economies; the effects of competition in the markets in which we operate; material changes in technology or technology substitution; disruption of our key suppliers' provisioning of products or services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks; breaches of network or information technology security, natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial impact not covered by insurance; our high level of indebtedness; 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; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; 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; the inability to implement our business strategies; and the inability to realize the expected benefits of strategic transactions.
As required by SEC rules, we have provided a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable GAAP measures in materials on our website atwww.verizon.com/about/investors.
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Consolidated
Strong earnings performance
4Q '18
2018
Reported EPS
Includes ~$0.22 in 4Q '18 and ~$0.84 in 2018 due to the net impact of tax reform and ASC 606*
Special items:
Oath goodwill impairment Early debt redemption costs Product realignment charges
Acquisition and integration related charges Severance, pension and benefits charges Wireless legal entity restructuring
$0.47
$3.76
$1.09 $1.10
n/a $0.13
n/a $0.12
$0.03 $0.10
$0.03 $0.01
($0.50)
($0.50)
Adjusted EPS**
Includes ~$0.22 in 4Q '18 and ~$0.84 in 2018 due to the net impact of tax reform and ASC 606*
Note: Amounts may not add due to rounding.
* ASC 606 - Revenue Recognition Standard adopted on January 1, 2018. ** Non-GAAP measure. Adjusted for special items.
$1.12
$4.71
Supplemental Information
Impact of ASC 606*
($ in millions)
ASC 606 Impact
w/o ASC 606 Impact
Wireless Service revenue Y/Y Growth Total revenue Y/Y Growth Segment EBITDA*** Segment EBITDA Margin*** $15,898 0.1% $24,412 2.7% $10,381 42.5% $63,020 (0.2%) $91,734 4.8% $42,556 46.4% | 2.7% $10,381 42.5% 4.8% $42,556 46.4% | $285 $1,202 ($143) ($414) ($550) ($1,682) $16,183 1.9% $24,269 2.1% $9,831 40.5% $64,222 1.7% $91,320 4.4% $40,874 44.8% |
4Q '18 | 2018 | 4Q '18 | 2018 | 4Q '18 | 2018 | |
Consolidated | ||||||
Total revenue | $34,281 | $130,863 | ($161) | ($425) | $34,120 | $130,438 |
Y/Y Growth | 1.0% | 3.8% | 0.5% | 3.5% | ||
Adjusted EBITDA** | $11,585 | $47,410 | ($603) | (1,851) | $10,982 | $45,559 |
Adjusted EBITDA Margin** | 33.8% | 36.2% | 32.2% | 34.9% | ||
Wireline | ||||||
Total revenue | $7,373 | $29,760 | ($20) | ($38) | $7,353 | $29,722 |
Y/Y Growth | (3.2%) | (3.0%) | (3.5%) | (3.1%) | ||
Segment EBITDA*** | $1,298 | $5,908 | ($55) | ($193) | $1,243 | $5,715 |
Segment EBITDA Margin*** | 17.6% | 19.9% | 16.9% | 19.2% |
* ASC 606 - Revenue Recognition Standard adopted on January 1, 2018. ** Non-GAAP measure. Adjusted for special items.
*** Non-GAAP measure.
2018 Summary
Delivered solid financials, strengthened balance sheet, and returned value to shareholders
Strong wireless profitability and customer retention
Continued network leadership, performance and technology development
Successfully executed a number of 5G firsts
▪ First over the air data transmission on 5G NR
▪ Completed first 5G data session on a smartphone
▪ First to commercially deploy 5G with our 5G home product
Announced Verizon 2.0
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Verizon Communications Inc. published this content on 29 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 January 2019 18:33:02 UTC