Frontier Communications Reports 2012 Fourth Quarter and Full Year Results
-
2012 full year free cash flow of
$975 million - 2012 full year operating cash flow margin of 48%, as adjusted
- 2012 full year dividend payout ratio of 41%
-
2012 full year capital expenditures of
$748 million in line with guidance - 2012 full year average revenue per customer metrics improved versus the prior year
"During 2012, we successfully completed the integration of our
"Our fourth quarter revenue was slightly lower than anticipated; mostly
attributable to a decline in voice revenues as customers chose unlimited
residential voice packages and standalone Simply Broadband options.
Positives for the quarter versus third quarter of 2012 included
continued improvement in both consumer customer retention and average
revenue per business customer. Our Q4 Apple gift card promotion gained
traction in December which has carried over into
Revenue for the fourth quarter of 2012 was
At
The Company's broadband customer net additions were approximately
5,300 during the fourth quarter of 2012. The Company had 1,787,600
broadband customers at
Network access expenses for the fourth quarter of 2012 were
Other operating expenses for the fourth quarter of 2012 were
Depreciation and amortization for the fourth quarter of 2012 was
Integration costs of approximately
Operating income for the fourth quarter of 2012 was
Excluding integration costs and severance costs, operating income and
operating income margin for the three months ended
Losses on early extinguishment of debt for the fourth quarter of
2012 of
Interest expense for the fourth quarter of 2012 was
Income tax expense for the fourth quarter of 2012 was
Net income attributable to common shareholders of Frontier was
Capital expenditures for Frontier business operations were
Operating cash flow, as adjusted and defined by the Company in
the attached Schedule B, was
Free cash flow, as defined by the Company in the attached
Schedule A, was
Working Capital
At
Guidance
For the full year of 2013, the Company's expectations for capital
expenditures and free cash flow are within a range of
Non-GAAP Measures
The Company uses certain non-GAAP financial measures in evaluating its performance. These include non-GAAP adjusted net income attributable to common shareholders of Frontier, free cash flow and operating cash flow. A reconciliation of the differences between non-GAAP adjusted net income attributable to common shareholders of Frontier, free cash flow and operating cash flow and the most comparable financial measures calculated and presented in accordance with GAAP is included in the tables that follow. The non-GAAP financial measures are by definition not measures of financial performance under GAAP, and are not alternatives to operating income or net income attributable to common shareholders of Frontier as reflected in the statement of operations or to cash flow as reflected in the statement of cash flows, and are not necessarily indicative of cash available to fund all cash flow needs. The non-GAAP financial measures used by the Company may not be comparable to similarly titled measures of other companies.
The Company believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company's financial condition and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) together provide a more comprehensive view of the Company's core operations and ability to generate cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation and planning decisions and (iii) presents measurements that investors and rating agencies have indicated to management are useful to them in assessing the Company and its results of operations. In addition, the Company believes that non-GAAP adjusted net income attributable to common shareholders of Frontier, free cash flow and operating cash flow, as the Company defines them, can assist in comparing performance from period to period, without taking into account factors affecting operating income or net income attributable to common shareholders of Frontier in the statement of operations, or cash flow reflected in the statement of cash flows, including changes in working capital and the timing of purchases and payments. The Company has shown adjustments to its financial presentations to exclude losses on the early extinguishment of debt, investment gains, discrete tax items, integration costs, severance costs and non-cash pension and other postretirement benefit costs, as disclosed in the attached Schedules A, B and C, because investors have indicated to management that such adjustments are useful to them in assessing the Company and its results of operations.
Management uses these non-GAAP financial measures to (i) assist in analyzing the Company's underlying financial performance from period to period, (ii) evaluate the financial performance of its business units, (iii) analyze and evaluate strategic and operational decisions, (iv) establish criteria for compensation decisions, and (v) assist management in understanding the Company's ability to generate cash flow and, as a result, to plan for future capital and operational decisions. Management uses these non-GAAP financial measures in conjunction with related GAAP financial measures.
These non-GAAP financial measures have certain shortcomings. In
particular, free cash flow does not represent the residual cash flow
available for discretionary expenditures, since items such as debt
repayments and dividends are not deducted in determining such measure.
Operating cash flow has similar shortcomings as interest, income taxes,
capital expenditures, debt repayments and dividends are not deducted in
determining this measure. Management compensates for the shortcomings of
these measures by utilizing them in conjunction with their comparable
GAAP financial measures. The information in this press release should be
read in conjunction with the financial statements and footnotes
contained in our documents filed with the
Conference Call and Webcast
The Company will host a conference call today at
http://investor.frontier.com/eventdetail.cfm?eventid=124338
A telephonic replay of the conference call will be available for one
week beginning at
About
Forward-Looking Statements
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of
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Consolidated Financial Data | ||||||||||||||||||||
For the quarter ended | For the year ended | |||||||||||||||||||
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(Amounts in thousands, except per share amounts) | 2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Income Statement Data | ||||||||||||||||||||
Revenue | $ | 1,232,553 | $ | 1,252,469 | $ | 1,283,152 | $ | 5,011,853 | $ | 5,243,043 | ||||||||||
Network access expenses | 108,535 | 102,051 | 120,828 | 441,588 | 518,682 | |||||||||||||||
Other operating expenses (1) | 570,711 | 572,348 | 548,595 | 2,234,553 | 2,278,419 | |||||||||||||||
Depreciation and amortization | 304,044 | 298,416 | 341,025 | 1,266,807 | 1,403,175 | |||||||||||||||
Integration costs (2) | 13,533 | 4,458 | 42,247 | 81,737 | 143,146 | |||||||||||||||
Total operating expenses | 996,823 | 977,273 | 1,052,695 |
4,024,685 |
4,343,422 | |||||||||||||||
Operating income | 235,730 | 275,196 | 230,457 | 987,168 | 899,621 | |||||||||||||||
Losses on early extinguishment of debt | (19,300 | ) | (245 | ) | - | (90,363 | ) | - | ||||||||||||
Investment and other income (loss), net | 1,138 | 4,602 | 1,487 | 20,132 | 11,526 | |||||||||||||||
Interest expense | 178,881 | 172,188 | 165,162 | 687,985 | 665,196 | |||||||||||||||
Income before income taxes | 38,687 | 107,365 | 66,782 | 228,952 | 245,951 | |||||||||||||||
Income tax expense | 9,488 | 35,739 | 21,534 | 75,638 | 88,343 | |||||||||||||||
Net income (2) |
29,199 | 71,626 | 45,248 | 153,314 | 157,608 | |||||||||||||||
Less: Income attributable to the noncontrolling interest in a partnership |
4,320 | 4,626 | 3,001 | 16,678 | 7,994 | |||||||||||||||
Net income attributable to common shareholders of Frontier | $ | 24,879 | $ | 67,000 | $ | 42,247 | $ | 136,636 | $ | 149,614 | ||||||||||
Weighted average shares outstanding | 991,316 | 991,295 | 990,276 | 990,537 | 989,852 | |||||||||||||||
Basic net income per share attributable to common shareholders of Frontier (3) |
$ | 0.02 | $ | 0.07 | $ | 0.04 | $ | 0.14 | $ | 0.15 | ||||||||||
Non-GAAP adjusted net income per share attributable to common shareholders of Frontier (3) (4) |
$ | 0.06 | $ | 0.07 | $ | 0.07 | $ | 0.26 | $ | 0.25 | ||||||||||
Other Financial Data | ||||||||||||||||||||
Capital expenditures - Business operations | $ | 177,300 | $ | 195,034 | $ | 111,792 | $ | 748,407 | $ | 748,361 | ||||||||||
Capital expenditures - Integration activities | 15,329 | 10,828 | 13,837 | 54,097 | 76,478 | |||||||||||||||
Operating cash flow, as adjusted (4) | 574,368 | 581,281 | 616,198 | 2,395,846 | 2,485,567 | |||||||||||||||
Free cash flow (4) | 221,984 | 215,256 | 358,762 | 975,267 | 1,121,475 | |||||||||||||||
Dividends paid | 99,843 | 99,845 | 186,584 | 399,390 | 746,387 | |||||||||||||||
Dividend payout ratio (5) | 45 | % | 46 | % | 52 | % | 41 | % | 67 | % |
(1) |
Includes severance costs of |
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(2) |
Reflects integration costs of |
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(3) | Calculated based on weighted average shares outstanding. | |
(4) | Reconciliations to the most comparable GAAP measures are presented in Schedules A, B and C at the end of these tables. | |
(5) | Represents dividends paid divided by free cash flow, as defined in Schedule A. | |
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Consolidated Financial and Operating Data | ||||||||||||||||||||
For the quarter ended | For the year ended | |||||||||||||||||||
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(Amounts in thousands, except operating data) | 2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Selected Income Statement Data | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Local and long distance services | $ | 542,538 | $ | 556,353 | $ | 592,860 | $ | 2,230,890 | $ | 2,451,311 | ||||||||||
Data and internet services | 456,422 | 461,212 | 464,873 | 1,823,010 | 1,842,933 | |||||||||||||||
Other | 92,393 | 94,929 | 78,377 | 381,536 | 329,658 | |||||||||||||||
Customer revenue | 1,091,353 | 1,112,494 | 1,136,110 | 4,435,436 | 4,623,902 | |||||||||||||||
Switched access and subsidy | 141,200 | 139,975 | 147,042 | 576,417 | 619,141 | |||||||||||||||
Total revenue | $ | 1,232,553 | $ | 1,252,469 | $ | 1,283,152 | $ | 5,011,853 | $ | 5,243,043 | ||||||||||
Other Financial and Operating Data | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Business | $ | 574,451 | $ | 581,097 | $ | 591,966 | $ | 2,317,212 | $ | 2,353,375 | ||||||||||
Residential | 516,902 | 531,397 | 544,144 | 2,118,224 | 2,270,527 | |||||||||||||||
Customer revenue | 1,091,353 | 1,112,494 | 1,136,110 | 4,435,436 | 4,623,902 | |||||||||||||||
Switched access and subsidy | 141,200 | 139,975 | 147,042 | 576,417 | 619,141 | |||||||||||||||
Total revenue | $ | 1,232,553 | $ | 1,252,469 | $ | 1,283,152 | $ | 5,011,853 | $ | 5,243,043 | ||||||||||
Customers | 3,173,169 | 3,223,557 | 3,413,666 | 3,173,169 | 3,413,666 | |||||||||||||||
Average monthly total revenue |
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per customer | $ | 128.46 | $ | 128.48 | $ | 123.83 | $ | 127.32 | $ | 121.88 | ||||||||||
Average monthly customer revenue | ||||||||||||||||||||
per customer | $ | 113.74 | $ | 114.12 | $ | 109.64 | $ | 112.68 | $ | 107.50 | ||||||||||
Business customer metrics: | ||||||||||||||||||||
Customers | 286,106 | 291,394 | 309,900 | 286,106 | 309,900 | |||||||||||||||
Revenue | $ | 574,451 | $ | 581,097 | $ | 591,966 | $ | 2,317,212 | $ | 2,353,375 | ||||||||||
Average monthly business revenue per customer | $ | 663.15 | $ | 659.01 | $ | 627.14 | $ | 650.63 | $ | 601.14 | ||||||||||
Residential customer metrics: | ||||||||||||||||||||
Customers | 2,887,063 | 2,932,163 | 3,103,766 | 2,887,063 | 3,103,766 | |||||||||||||||
Revenue | $ | 516,902 | $ | 531,397 | $ | 544,144 | $ | 2,118,224 | $ | 2,270,527 | ||||||||||
Average monthly residential revenue per customer (1) | $ | 58.00 | $ | 58.72 | $ | 56.95 | $ | 58.03 | $ | 57.40 | ||||||||||
Customer monthly churn | 1.62 | % | 1.64 | % | 1.54 | % | 1.62 | % | 1.69 | % | ||||||||||
Employees | 14,659 | 15,250 | 15,388 | 14,659 | 15,388 | |||||||||||||||
Broadband subscribers | 1,787,561 | 1,782,278 | 1,764,160 | 1,787,561 | 1,764,160 | |||||||||||||||
Video subscribers (2) | 346,627 | 328,538 | 303,046 | 346,627 | 303,046 | |||||||||||||||
Switched access minutes of use (in millions) | 4,523 | 4,481 | 4,482 | 18,292 | 18,894 |
(1) |
Calculation excludes the |
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(2) |
Video subscribers excludes the loss of 203,100 DirecTV subscribers
in the third quarter of 2012 as Frontier no longer provides DirecTV
as part of its bundled packages. Video subscribers excludes 224,500
DirecTV subscribers as of |
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Condensed Consolidated Balance Sheet Data | ||||||||
(Amounts in thousands) | ||||||||
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ASSETS |
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Current assets: | ||||||||
Cash and cash equivalents | $ | 1,326,532 | $ | 326,094 | ||||
Accounts receivable, net | 533,704 | 585,157 | ||||||
Restricted cash | 15,408 | - | ||||||
Other current assets | 211,559 | 327,779 | ||||||
Total current assets |
2,087,203 | 1,239,030 | ||||||
Restricted cash | 27,252 | 144,680 | ||||||
Property, plant and equipment, net | 7,504,896 | 7,547,523 | ||||||
Other assets - principally goodwill | 8,114,280 | 8,517,086 | ||||||
Total assets | $ | 17,733,631 | $ | 17,448,319 | ||||
LIABILITIES AND EQUITY |
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Current liabilities: | ||||||||
Long-term debt due within one year | $ | 560,550 | $ | 94,016 | ||||
Accounts payable and other current liabilities | 992,970 | 1,058,200 | ||||||
Total current liabilities | 1,553,520 | 1,152,216 | ||||||
Deferred income taxes and other liabilities | 3,678,893 | 3,602,577 | ||||||
Long-term debt | 8,381,947 | 8,224,392 | ||||||
Equity | 4,119,271 | 4,469,134 | ||||||
Total liabilities and equity | $ | 17,733,631 | $ | 17,448,319 | ||||
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Consolidated |
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(Amounts in thousands) | ||||||||
For the year ended December 31, | ||||||||
2012 | 2011 | |||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net income | $ | 153,314 | $ | 157,608 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization expense | 1,266,807 | 1,403,175 | ||||||
Stock based compensation expense | 16,775 | 14,209 | ||||||
Pension/OPEB costs | 28,087 | 23,897 | ||||||
Losses on early extinguishment of debt | 90,363 | - | ||||||
Other non-cash adjustments | 10,319 | (28,036 | ) | |||||
Deferred income taxes | 80,501 | 87,411 | ||||||
Change in accounts receivable | 43,813 | (72,600 | ) | |||||
Change in accounts payable and other liabilities | (148,906 | ) | (84,689 | ) | ||||
Change in other current assets | 11,400 | 71,706 | ||||||
Net cash provided by operating activities | 1,552,473 | 1,572,681 | ||||||
Cash flows provided from (used by) investing activities: | ||||||||
Capital expenditures - Business operations | (748,407 | ) | (748,361 | ) | ||||
Capital expenditures - Integration activities | (54,097 | ) | (76,478 | ) | ||||
Network expansion funded by |
(4,830 | ) | - | |||||
Grant funds received for network expansion from |
65,981 | - | ||||||
Cash transferred from escrow | 102,020 | 43,012 | ||||||
Other assets purchased and distributions received, net | 4,394 | 19,155 | ||||||
Net cash used by investing activities | (634,939 | ) | (762,672 | ) | ||||
Cash flows provided from (used by) financing activities: | ||||||||
Long-term debt borrowings | 1,360,625 | 575,000 | ||||||
Financing costs paid | (27,852 | ) | (5,444 | ) | ||||
Long-term debt payments | (756,953 | ) | (552,394 | ) | ||||
Premium paid to retire debt | (72,290 | ) | - | |||||
Dividends paid | (399,390 | ) | (746,387 | ) | ||||
Repayment of customer advances for construction, distributions to noncontrolling interests and other |
(21,236 | ) | (5,953 | ) | ||||
Net cash provided from (used by) financing activities | 82,904 | (735,178 | ) | |||||
Increase (decrease) in cash and cash equivalents | 1,000,438 | 74,831 | ||||||
Cash and cash equivalents at |
326,094 | 251,263 | ||||||
Cash and cash equivalents at |
$ | 1,326,532 | $ | 326,094 | ||||
Cash paid (received) during the period for: | ||||||||
Interest | $ | 636,485 | $ | 653,500 | ||||
Income taxes (refunds) | $ | 4,715 | $ | (33,072 | ) | |||
Non-cash investing and financing activities: | ||||||||
Capital lease obligations | $ | 26,596 | $ | - | ||||
Financing obligation for contribution of real property to pension plan |
$ | - | $ | 58,100 | ||||
Reduction of pension obligation | $ | - | $ | (58,100 | ) | |||
Increase (decrease) in capital expenditures due to changes in accounts payable |
$ | 9,802 | $ | 1,338 | ||||
Schedule A | ||||||||||||||||||||
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Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
For the quarter ended | For the year ended | |||||||||||||||||||
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(Amounts in thousands) | 2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Net Income to Free Cash Flow; |
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Net Cash Provided by Operating Activities |
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Net income | $ | 29,199 | $ | 71,626 | $ | 45,248 | $ | 153,314 | $ | 157,608 | ||||||||||
Add back: | ||||||||||||||||||||
Depreciation and amortization | 304,044 | 298,416 | 341,025 | 1,266,807 | 1,403,175 | |||||||||||||||
Income tax expense | 9,488 | 35,739 | 21,534 | 75,638 | 88,343 | |||||||||||||||
Integration costs | 13,533 | 4,458 | 42,247 | 81,737 | 143,146 | |||||||||||||||
Pension/OPEB costs (non-cash) (1) | 3,867 | (3,633 | ) | 1,382 | 28,087 | 23,897 | ||||||||||||||
Severance costs (2) | 17,194 | 6,844 | 1,087 | 32,047 | 15,728 | |||||||||||||||
Stock based compensation | 3,825 | 5,175 | 3,480 | 16,775 | 14,209 | |||||||||||||||
Subtract: | ||||||||||||||||||||
Cash paid (refunded) for income taxes | 622 | 4,301 | (16,825 | ) | 4,715 | (33,072 | ) | |||||||||||||
Losses on early extinguishment of debt | (19,300 | ) | (245 | ) | - | (90,363 | ) | - | ||||||||||||
Other income (loss), net | 544 | 4,279 | 2,274 | 16,379 | 9,342 | |||||||||||||||
Capital expenditures - Business operations (3) | 177,300 | 195,034 | 111,792 | 748,407 | 748,361 | |||||||||||||||
Free cash flow (2) | 221,984 | 215,256 | 358,762 | 975,267 | 1,121,475 | |||||||||||||||
Add back: | ||||||||||||||||||||
Deferred income taxes | 20,707 | 32,636 | 67,192 | 80,501 | 87,411 | |||||||||||||||
Non-cash (gains)/losses, net | 10,971 | 196 | (19,854 | ) | 55,181 | 10,070 | ||||||||||||||
Other income (loss), net | 544 | 4,279 | 2,274 | 16,379 | 9,342 | |||||||||||||||
Cash paid (refunded) for income taxes | 622 | 4,301 | (16,825 | ) | 4,715 | (33,072 | ) | |||||||||||||
Capital expenditures - Business operations (3) | 177,300 | 195,034 | 111,792 | 748,407 | 748,361 | |||||||||||||||
Subtract: | ||||||||||||||||||||
Changes in current assets and liabilities | (7,967 | ) | 627 | 133,584 | 93,693 | 85,583 | ||||||||||||||
Income tax expense | 9,488 | 35,739 | 21,534 | 75,638 | 88,343 | |||||||||||||||
Integration costs | 13,533 | 4,458 | 42,247 | 81,737 | 143,146 | |||||||||||||||
Pension/OPEB costs (non-cash) (1) |
3,867 | (3,633 | ) | 1,382 | 28,087 | 23,897 | ||||||||||||||
Severance costs (2) | 17,194 | 6,844 | 1,087 | 32,047 | 15,728 | |||||||||||||||
Stock based compensation | 3,825 | 5,175 | 3,480 | 16,775 | 14,209 | |||||||||||||||
Net cash provided by operating activities | $ | 392,188 | $ | 402,492 | $ | 300,027 | $ | 1,552,473 | $ | 1,572,681 |
(1) |
Reflects pension and other postretirement benefit (OPEB) expense,
net of capitalized amounts, of |
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(2) |
The definition of free cash flow has been revised as of |
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(3) | Excludes capital expenditures for integration activities. | |
Schedule B | ||||||||||||||||||||||||||||||||||||||||
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Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||||||||||
For the quarter ended |
For the quarter ended |
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(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||||
Operating |
Non-cash | Non-cash | ||||||||||||||||||||||||||||||||||||||
As |
Integration |
Pension/OPEB | Severance | As | As | Integration | Pension/OPEB | Severance | As | |||||||||||||||||||||||||||||||
Reported | Costs |
Costs (1) |
Costs | Adjusted | Reported | Costs |
Costs (1) |
Costs | Adjusted | |||||||||||||||||||||||||||||||
Operating Income | $ | 235,730 | $ | 13,533 | $ | 3,867 | $ | 17,194 | $ | 270,324 | $ | 230,457 | $ | 42,247 | $ | 1,382 | $ | 1,087 | $ | 275,173 | ||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
304,044 | - | - | - | 304,044 | 341,025 | - | - | - | 341,025 | ||||||||||||||||||||||||||||||
Operating cash flow | $ | 539,774 | $ | 13,533 | $ | 3,867 | $ | 17,194 | $ | 574,368 | $ | 571,482 | $ | 42,247 | $ | 1,382 | $ | 1,087 | $ | 616,198 | ||||||||||||||||||||
Revenue | $ | 1,232,553 | $ | 1,232,553 | $ | 1,283,152 | $ | 1,283,152 | ||||||||||||||||||||||||||||||||
Operating income margin | ||||||||||||||||||||||||||||||||||||||||
(Operating income divided by revenue) |
19.1 | % | 21.9 | % | 18.0 | % | 21.4 | % | ||||||||||||||||||||||||||||||||
Operating cash flow margin | ||||||||||||||||||||||||||||||||||||||||
(Operating cash flow divided by revenue) |
43.8 | % | 46.6 | % | 44.5 | % | 48.0 | % | ||||||||||||||||||||||||||||||||
For the quarter ended |
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Operating |
Non-cash | |||||||||||||||||||||||||||||||||||||||
As | Integration | Pension/OPEB | Severance | As | ||||||||||||||||||||||||||||||||||||
Reported | Costs |
Costs (1) |
Costs | Adjusted | ||||||||||||||||||||||||||||||||||||
Operating Income | $ | 275,196 | $ | 4,458 | $ | (3,633 | ) | $ | 6,844 | $ | 282,865 | |||||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
298,416 | - | - | - | 298,416 | |||||||||||||||||||||||||||||||||||
Operating cash flow | $ | 573,612 | $ | 4,458 | $ | (3,633 | ) | $ | 6,844 | $ | 581,281 | |||||||||||||||||||||||||||||
Revenue | $ | 1,252,469 | $ | 1,252,469 | ||||||||||||||||||||||||||||||||||||
Operating income margin | ||||||||||||||||||||||||||||||||||||||||
(Operating income divided by revenue) |
22.0 | % | 22.6 | % | ||||||||||||||||||||||||||||||||||||
Operating cash flow margin | ||||||||||||||||||||||||||||||||||||||||
(Operating cash flow divided by revenue) |
45.8 | % | 46.4 | % |
(1) |
Reflects pension and other postretirement benefit (OPEB) expense,
net of capitalized amounts, of |
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Schedule B | |||||||||||||||||||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||||||||||||||||||
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Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||||||
For the year ended |
For the year ended |
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(Amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||
Operating |
Non-cash | Non-cash | |||||||||||||||||||||||||||||||||||||||
As | Integration | Pension/OPEB | Severance | As | As | Integration | Pension/OPEB | Severance | As | ||||||||||||||||||||||||||||||||
Reported |
Costs |
Costs (1) |
Costs | Adjusted | Reported | Costs |
Costs (1) |
Costs | Adjusted | ||||||||||||||||||||||||||||||||
Operating Income | $ | 987,168 | $ | 81,737 | $ | 28,087 | $ | 32,047 | $ | 1,129,039 | $ | 899,621 | $ | 143,146 | $ | 23,897 | $ | 15,728 | $ | 1,082,392 | |||||||||||||||||||||
Add back: | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
1,266,807 | - | - | - | 1,266,807 | 1,403,175 | - | - | - | 1,403,175 | |||||||||||||||||||||||||||||||
Operating cash flow | $ | 2,253,975 | $ | 81,737 | $ | 28,087 | $ | 32,047 | $ | 2,395,846 | $ | 2,302,796 | $ | 143,146 | $ | 23,897 | $ | 15,728 | $ | 2,485,567 | |||||||||||||||||||||
Revenue | $ | 5,011,853 | $ | 5,011,853 | $ | 5,243,043 | $ | 5,243,043 | |||||||||||||||||||||||||||||||||
Operating income margin | |||||||||||||||||||||||||||||||||||||||||
(Operating income divided by revenue) |
19.7 | % | 22.5 | % | 17.2 | % | 20.6 | % | |||||||||||||||||||||||||||||||||
Operating cash flow margin | |||||||||||||||||||||||||||||||||||||||||
(Operating cash flow divided by revenue) |
45.0 | % | 47.8 | % | 43.9 | % | 47.4 | % |
(1) |
Reflects pension and other postretirement benefit (OPEB) expense,
net of capitalized amounts, of |
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Schedule C |
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Reconciliation of Non-GAAP Financial Measures |
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(Amounts in thousands, except per share amounts) |
For the quarter ended | |||||||||||||||||||||||
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Net income attributable to common |
Earnings | Earnings | Earnings | |||||||||||||||||||||
shareholders of Frontier |
Net Income | Per Share | Net Income | Per Share | Net Income | Per Share | ||||||||||||||||||
GAAP, as reported | $ | 24,879 | $ | 0.02 | $ | 67,000 | $ | 0.07 | $ | 42,247 | $ | 0.04 | ||||||||||||
Losses on early extinguishment of debt | 12,120 | 0.01 | 154 | - | - | - | ||||||||||||||||||
Integration costs | 9,067 | 0.01 | 2,916 | - | 26,088 | 0.03 | ||||||||||||||||||
Severance costs | 11,520 | 0.01 | 4,476 | - | 671 | - | ||||||||||||||||||
Discrete tax items (1) | 361 | - | (5,667 | ) | (0.01 | ) | (2,397 | ) | - | |||||||||||||||
Non-GAAP, as adjusted (2) | $ | 57,947 | $ | 0.06 | $ | 68,879 | $ | 0.07 | $ | 66,609 | $ | 0.07 | ||||||||||||
For the year ended | ||||||||||||||||||||||||
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Net income attributable to common |
Earnings | Earnings | ||||||||||||||||||||||
shareholders of Frontier |
Net Income | Per Share | Net Income | Per Share | ||||||||||||||||||||
GAAP, as reported | $ | 136,636 | $ | 0.14 | $ | 149,614 | $ | 0.15 | ||||||||||||||||
Losses on early extinguishment of debt | 56,748 | 0.06 | - | - | ||||||||||||||||||||
Integration costs | 51,789 | 0.05 | 88,393 | 0.09 | ||||||||||||||||||||
Severance costs | 20,965 | 0.02 | 9,712 | 0.01 | ||||||||||||||||||||
Gain on investment in |
(6,191 | ) | (0.01 | ) | - | - | ||||||||||||||||||
Discrete tax items (1) | (5,306 | ) | (0.01 | ) | (4,546 | ) | - | |||||||||||||||||
Non-GAAP, as adjusted (2) | $ | 254,641 | $ | 0.26 | $ | 243,173 | $ | 0.25 |
(1) Includes the reversal of uncertain tax positions and changes in certain deferred tax balances.
(2) Non-GAAP, as adjusted may not sum due to rounding.
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