STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NYSE: FTR) paid its Third-Quarter
dividend to shareholders on Friday, September 30, 2011 and announced
today that its Board of Directors has reaffirmed its current intention
to maintain the annual dividend of $0.75 per share of the Company’s
common stock.
“We remain committed to the return of capital to our shareholders at the
dividend level announced in May 2009 and believe our ability to do so
will be enhanced by delivering on the cost synergies of the Verizon
property acquisition completed a little over a year ago,” said Maggie
Wilderotter, Chairman and Chief Executive Officer. “In addition, our
third-quarter 2011 broadband unit growth was stronger than the prior
quarter. Our 2011 free cash flow guidance of $1.075 to $1.125 billion
sufficiently covers an annual dividend of approximately $746 million,
and we look to enhance this payout ratio through further synergy
realization, the completion of our broadband network expansion, and our
continued improvement in our sales and retention initiatives. Systems
conversions are a primary driver of cost synergies and we are pleased to
report that we began conversion of the next four states on October 1,
2011 and expect to finish the remaining nine states in the first half of
2012.”
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.
About Frontier Communications
Frontier Communications Corporation (NYSE: FTR) offers voice, High-Speed
Internet, satellite video, wireless Internet data access, data security
solutions, bundled offerings, specialized bundles for small businesses
and home offices, and advanced business communications for medium and
large businesses in 27 states and with approximately 14,900 employees
based entirely in the USA. More information is available at www.frontier.com
and www.frontier.com/ir.
Forward-Looking Statements
This press release 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: Our
ability to successfully integrate the operations and systems of the
acquired business into Frontier’s existing operations; the risk that the
growth opportunities and cost synergies from the transaction may not be
fully realized or may take longer to realize than expected; our
indemnity obligation to Verizon for taxes which may be imposed upon them
as a result of changes in ownership of our stock may discourage, delay
or prevent a third party from acquiring control of us during the
two-year period ending July 2012 in a transaction that stockholders
might consider favorable; the effects of increased expenses incurred due
to activities related to the integration of the acquired business; most
of the acquired business operates on systems acquired in the
transaction, which may not continue to function properly following the
first group of conversions to our legacy systems; our ability to
maintain relationships with customers, employees or suppliers; the
effects of greater than anticipated competition requiring new pricing,
marketing strategies or new product or service offerings and the risk
that we will not respond on a timely or profitable basis; reductions in
the number of our access lines that cannot be offset by increases in
High-Speed Internet (HSI) subscribers and sales of other products and
services; the effects of ongoing changes in the regulation of the
communications industry as a result of federal and state legislation and
regulation, or changes in the enforcement or interpretation of such
legislation and regulation; the effects of any unfavorable outcome with
respect to any current or future legal, governmental or regulatory
proceedings, audits or disputes; the effects of changes in the
availability of federal and state universal funding to us and our
competitors; the effects of competition from cable, wireless and other
wireline carriers; our ability to adjust successfully to changes in the
communications industry and to implement strategies for growth;
continued reductions in switched access revenues as a result of
regulation, competition or technology substitutions; our ability to
effectively manage service quality in our territories and meet mandated
service quality metrics; 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
customers; changes in accounting policies or practices adopted
voluntarily or as required by generally accepted accounting principles
or regulations; our ability to effectively manage our operations,
operating expenses and capital expenditures, and to repay, reduce or
refinance our debt; the effects of changes in both general and local
economic conditions on the markets that we serve, which can affect
demand for our products and services, customer purchasing decisions,
collectability of revenues and required levels of capital expenditures
related to new construction of residences and businesses; the effects of
technological changes and competition on our capital expenditures and
product and service offerings, including the lack of assurance that our
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, or
federal or state tax assessments; the effects of state regulatory cash
management practices that could limit our ability to transfer cash among
our subsidiaries or dividend funds up to the parent company; our ability
to successfully renegotiate union contracts expiring in 2011 and
thereafter; changes in pension plan assumptions and/or the value of our
pension plan assets, which would require us to make increased
contributions to the pension plan in 2012 and beyond; the effects of
customer bankruptcies and home foreclosures, which could result in
difficulty in collection of revenues and loss of customers; adverse
changes in the credit markets or in the ratings given to our debt
securities by nationally accredited ratings organizations, which could
limit or restrict the availability, or increase the cost, of financing;
limitations on the amount of capital stock that we can issue to make
acquisitions or to raise additional capital until July 2012; our ability
to pay dividends on our common shares, which may be affected by our cash
flow from operations, amount of capital expenditures, debt service
requirements, cash paid for income taxes and liquidity; and the effects
of severe weather events such as hurricanes, tornados, ice storms or
other natural or man-made disasters. 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, and the foregoing information should be read in
conjunction with these filings. We undertake no obligation to publicly
update or revise any forward-looking statements or to make any other
forward-looking statement, whether as a result of new information,
future events or otherwise unless required to do so by securities laws.
INVESTORS:
David Whitehouse, 203-614-5708
SVP &
Treasurer
david.whitehouse@ftr.com
or
Gregory
Lundberg, 203-614-5044
Assistant Treasurer & Investor Relations
greg.lundberg@ftr.com
or
MEDIA:
Brigid
Smith, 203-614-5042
AVP Corp. Communications
brigid.smith@ftr.com
Source: Frontier Communications Corporation