-
Achieved Annualized Cost Synergies of $1 billion in the Second Quarter
-
Raising Cost Synergy Target to $1.25 billion from $700 million annually
-
Broadband Upgrade Continues – Planning additional 1.5 million 50 Mbps
capable or higher households over the next year
-
2016 guidance ranges narrowed; 2017 outlook guidance provided
-
Dividend Payout Ratio(1) of 49% in second quarter
NORWALK, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NASDAQ:FTR) today reported its
financial results for the second quarter of 2016, which include
contributions from the fully integrated assets Frontier acquired from
Verizon in California, Texas, and Florida (CTF).
“We are very pleased with the performance of our newly acquired assets
and our achievement of annualized cost synergies of $1 billion in the
second quarter. We now expect annual cost synergies related to the
acquisition of $1.25 billion, up from our original estimate of $700
million,” said Dan McCarthy, Frontier President and Chief Executive
Officer.
“As we move forward, we are continuing to focus on executing our
strategy for growth, including upgrading our broadband speed
capabilities, expanding our new Vantage video service to an increasing
portion of our footprint, and implementing our successful commercial
distribution capabilities in Frontier’s new markets. We will remain
focused on increasing our broadband and video penetration, and improving
our efficiency. Our priorities continue to be driving strong free cash
flow and continuing our disciplined capital allocation policy, which
together underpin our very attractive, sustainable dividend, and
industry-leading dividend payout ratio. We also are very well-positioned
to achieve our plan to reduce leverage over time,” McCarthy said.
Financial Highlights for the Second Quarter 2016:
-
Revenue of $2,608 million
-
Operating income of $311 million, operating income margin of 11.9%
-
Net loss of $80 million, or ($0.07) per share
-
Adjusted EBITDA(2) of $1,032 million, adjusted EBITDA
margin of 39.6%
-
Net cash provided from operating activities of $693 million
-
Adjusted Free Cash Flow(3) of $250 million
Revenue:
|
|
|
For the quarter ended
|
| | | June 30, 2016 |
| |
| | |
| ($ in millions) | | |
Consolidated
|
| |
CTF
|
|
Frontier
| | March 31,
| | June 30,
|
| | |
Amount
| |
|
Operations
| |
Legacy*
| |
2016
| |
2015
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
|
Total revenue
| | |
$
|
2,608
| |
$
|
1,282
| |
$
|
1,326
| |
$
|
1,355
| |
$
|
1,368
|
* Excludes results from the recently acquired CTF Operations. See
attached schedules for the presentation of consolidated results.
Revenue in the second quarter of 2016 associated with the CTF Operations
reflected certain reductions to revenues previously reported for the
business, including revenue that did not transfer over from Verizon and
strategic decisions to terminate certain contracts and services which,
while lowering revenues, added to EBITDA. Revenues were also impacted by
one-time items, including the temporary suspension of late fees, outage
credits and the anticipated acquisition-related accounting changes.
Also, as previously announced, the Company temporarily suspended
marketing activity which impacted customer additions. Mr. McCarthy
commented, “We are pleased that the EBITDA from the acquired operations
met our expectations for the quarter as a result of better-than-expected
cost synergies, and despite our strategic decision to forego specific
revenue opportunities.”
Customers:
|
|
|
|
|
As of and for the quarter ended
|
| | | | | June 30, 2016 |
| June 30, 2015 |
| Residential customer metrics: | | | | | | |
| | |
|
Customers (in thousands)
| | | | | |
5,243
| | |
3,175
|
|
Average monthly residential revenue per customer
| | | | |
$
|
83.20
| |
$
|
64.43
|
|
Customer monthly churn
| | | | | |
1.91%
| | |
1.78%
|
| | | | | | | | |
|
| Business customer metrics: | | | | | | | | | |
|
Customers (in thousands)
| | | | | |
528
| | |
299
|
|
Average monthly business revenue per customer
| | | | |
$
|
658.00
| |
$
|
689.21
|
| | | | | | | | |
|
| Broadband subscribers (in thousands) | | | | | |
4,570
| | |
2,406
|
| Video subscribers (in thousands) | | | | | |
1,628
| | |
569
|
| | | | | | | | |
|
The broadband and video unit results during the second quarter reflect
Frontier’s previously-stated plans to suspend marketing during the
second quarter to prospective new customers in the acquired CTF markets,
enabling Frontier to focus its efforts on supporting existing customers
in those markets. Marketing spending and engagement have now returned to
normal levels and the Company anticipates improved customer additions in
the third quarter and beyond. Residential ARPC increased during the
second quarter largely as a result of the greater availability of video
in the new CTF markets. Business ARPC decreased primarily due to the CTF
markets having proportionally fewer wholesale customers relative to
total business customers as compared to our legacy markets.
Integration Costs:
Frontier completed its CTF customer conversion activities in the second
quarter and is finalizing the remainder of its integration work. During
the second quarter, Frontier incurred $106 million of integration
operating expenses and $36 million of integration capital expenditures.
These costs were driven by cutover activities and the acceleration of
certain projects to improve synergy attainment.
Cash Flow Highlights:
|
|
|
|
|
For the quarter ended
|
| | | | | June 30, 2016 |
| June 30, 2015 |
|
Capital expenditures – business operations
| | | | |
$
|
350
| | |
$
|
178
| |
|
Capital expenditures – integration activities
| | | | |
$
|
36
| | |
$
|
28
| |
|
Dividends paid – preferred stock
| | | | |
$
|
53
| | |
$
|
-
| |
Adjusted free cash flow(4) | | | | |
$
|
250
| | |
$
|
200
| |
|
Dividends paid – common stock
| | | | |
$
|
123
| | |
$
|
106
| |
|
Dividend payout ratio(4) | | | | | |
49
|
%
| | |
53
|
%
|
| | | | | | | | | | |
|
Guidance:
For the full year 2016, Frontier expects:
-
Adjusted free cash flow (as calculated per Schedule A) to be in the
range of $825 million to $900 million(5)
-
Capital expenditures to be in the range of $1,275 million to $1,325
million
-
Cash taxes refunds to be in the range of $10 million to $20 million
-
Cash contributions to the pension plan to be in the range of $10
million to $15 million.
-
For the full year 2017, Frontier expects adjusted EBITDA to be greater
than $4 billion.
Non-GAAP Measures
Frontier uses certain non-GAAP financial measures in evaluating its
performance, including EBITDA, EBITDA margin, adjusted EBITDA, adjusted
EBITDA margin, free cash flow, adjusted free cash flow, adjusted
operating expenses, adjusted net income, adjusted earnings per share and
dividend payout ratio, each of which is described below. Management uses
these non-GAAP financial measures internally to (i) assist in analyzing
Frontier's underlying financial performance from period to period, (ii)
evaluate our regional financial performance, (iii) analyze and evaluate
strategic and operational decisions, (iv) establish criteria for
compensation decisions, and (v) assist in the understanding of
Frontier's ability to generate cash flow and, as a result, to plan for
future capital and operational decisions. We believe that the
presentation of these non-GAAP financial measures provides useful
information to investors regarding our 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 our 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) present measurements that investors and
rating agencies have indicated to management are useful to them in
assessing Frontier and its results of operations.
A reconciliation of these measures to the most comparable financial
measures calculated and presented in accordance with GAAP is included in
the accompanying tables. These non-GAAP financial measures are not
measures of financial performance or liquidity under GAAP, nor are they
alternatives to GAAP measures and they may not be comparable to
similarly titled measures of other companies.
EBITDA is defined as net income (loss) less income tax expense
(benefit), investment and other income, interest expense and
depreciation and amortization. EBITDA margin is calculated by dividing
EBITDA by total revenues.
Adjusted EBITDA is defined as EBITDA, as described above, adjusted to
exclude acquisition and integration costs, and non-cash pension/OPEB
costs. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA
by total revenues.
Management uses EBITDA, EBITDA margin, adjusted EBITDA and adjusted
EBITDA margin to assist it in comparing performance from period to
period and as measures of operational performance. We believe that these
non-GAAP measures provide useful information for investors in evaluating
our operational performance from period to period because they exclude
depreciation and amortization expenses related to investments made in
prior periods and are determined without regard to capital structure or
investment activities. By excluding capital expenditures, debt
repayments and dividends, these non-GAAP financial measures have certain
shortcomings. Management compensates for these shortcomings by utilizing
these non-GAAP financial measures in conjunction with the comparable
GAAP financial measures.
Adjusted net income (loss) attributable to Frontier common shareholders
is defined as net income (loss) attributable to Frontier common
shareholders and excludes acquisition and integration costs, certain
income tax items and the income tax effect of these items. Adjustments
have also been made to exclude the financing costs and related income
tax effects associated with the Verizon Transaction, including interest
expense and preferred dividends prior to our ownership of the CTF
Operations. Adjusting for these items allows investors to better
understand and analyze our financial performance over the periods
presented.
Adjusted earnings per share is calculated by dividing adjusted net
income (loss) attributable to Frontier common shareholders by the
weighted average shares outstanding – basic.
Free Cash Flow, as used by management in the operation of its business,
is defined as net cash provided from operating activities less capital
expenditures for business operations and preferred dividends. In
determining free cash flow, further adjustments are made to add back
acquisition and integration costs, and interest expense on commitment
fees, which provides a better comparison of our core operations from
period to period. Changes in working capital accounts are excluded from
this calculation due to seasonality and specific timing of cash receipts
and disbursements between various reporting periods.
Adjusted Free Cash Flow is defined as free cash flow, as described above
and adding back interest expense on incremental debt and dividends paid
on preferred stock issued to finance the Verizon Acquisition incurred
prior to our ownership of the CTF Operations.
Management uses free cash flow and adjusted free cash flow to assist it
in comparing performance and liquidity from period to period and to
obtain a more comprehensive view of our core operations and ability to
generate cash flow. We believe that these non-GAAP measures are useful
to investors in evaluating cash available to service debt and pay
dividends. In addition, we believe that adjusted free cash flow provides
a useful comparison from period to period because it excludes the impact
of financing raised in connection with the Verizon Acquisition during
periods prior to our ownership of the CTF Operations. These non-GAAP
financial measures have certain shortcomings; they do not represent the
residual cash flow available for discretionary expenditures, since items
such as debt repayments, changes in working capital and common stock
dividends are not deducted in determining such measures. Management
compensates for these shortcomings by utilizing these non-GAAP financial
measures in conjunction with the comparable GAAP financial measures.
Dividend Payout Ratio is calculated by dividing the dividends paid on
common stock by free cash flow. Management uses the dividend payout
ratio as a metric to indicate how much money Frontier is returning to
our shareholders. We have made adjustments to exclude the impact of
financing raised in connection with the Verizon Acquisition during
periods prior to our ownership of the CTF Operations, which we believe
provides a useful comparison from period to period.
Adjusted Operating Expenses is defined as operating expenses adjusted to
exclude depreciation and amortization, acquisition and integration
costs, and non-cash pension/OPEB costs. Investors have indicated that
this non-GAAP measure is useful in evaluating Frontier’s performance.
The information in this press release should be read in conjunction with
the financial statements and footnotes contained in our documents filed
with the U.S. Securities and Exchange Commission.
Conference Call and Webcast
We will host a conference call today at 4:30 P.M. Eastern time. In
connection with the conference call and as a convenience to investors,
Frontier furnished today, on a Current Report on Form 8-K, additional
materials regarding second quarter 2016 results. The conference call
will be webcast and may be accessed at http://investor.frontier.com/events.cfm.
A telephonic replay of the conference call will be available from 8 P.M.
Eastern time on August 1, 2016 through 8 P.M. Eastern time on August 6,
2016, via dial-in at 888-203-1112 for U.S. and Canadian callers or,
outside the United States and Canada, at 719-457-0820. Use the passcode
3831047 to access the replay. A webcast replay of the call will be
available at www.frontier.com/ir.
About Frontier Communications
Frontier Communications Corporation is a leader in providing
communications services to urban, suburban, and rural communities in 29
states. Frontier offers a variety of services to residential customers
over its fiber-optic and copper networks, including video, high-speed
internet, advanced voice, and Frontier Secure® digital protection
solutions. Frontier Business Edge™ offers communications solutions to
small, medium, and enterprise businesses. Frontier’s approximately
30,300 employees are based entirely in the United States. More
information about Frontier is available at www.frontier.com.
Forward-Looking Statements
This document contains "forward-looking statements," related to future,
not past, events. Forward-looking statements address our expected future
business and financial performance and financial condition, and contain
words such as "expect," "anticipate," "intend," "plan," "believe,"
"seek," "see," "will," "would," or "target." Forward-looking statements
by their nature address matters that are, to different degrees,
uncertain. For us, particular uncertainties that could cause our actual
results to be materially different than those expressed in our
forward-looking statements include: risks related to the acquisition of
properties from Verizon, including our ability to successfully operate
the acquired business, our ability to realize anticipated cost savings,
our ability to enter into or obtain, or delays in entering into or
obtaining, agreements and consents necessary to operate the acquired
business as planned, on terms acceptable to us, and increased expenses
incurred due to activities related to the transaction; our ability to
meet our debt and debt service obligations; competition from cable,
wireless and wireline carriers and satellite companies and the risk that
we will not respond on a timely or profitable basis; our ability to
successfully adjust to changes in the communications industry, including
the effects of technological changes and competition on our capital
expenditures, products and service offerings; reductions in revenue from
our voice customers that we cannot offset with increases in revenue from
broadband and video subscribers and sales of other products and
services; our ability to maintain relationships with customers,
employees or suppliers; the impact of regulation and regulatory,
investigative and legal proceedings and legal compliance risks;
continued reductions in switched access revenues as a result of
regulation, competition or technology substitutions; the effects of
changes in the availability of federal and state universal service
funding or other subsidies to us and our competitors; our ability to
effectively manage service quality in our territories and meet mandated
service quality metrics; our ability to successfully introduce new
product offerings; the effects of changes in accounting policies or
practices, including potential future impairment charges with respect to
our intangible assets; our ability to effectively manage our operations,
operating expenses, capital expenditures, debt service requirements and
cash paid for income taxes and liquidity, which may affect payment of
dividends on our common and preferred shares; the effects of changes in
both general and local economic conditions on the markets that we serve;
the effects of increased medical expenses and pension and postemployment
expenses; the effects of changes in income tax rates, tax laws,
regulations or rulings, or federal or state tax assessments; our ability
to successfully renegotiate union contracts; changes in pension plan
assumptions, interest rates, regulatory rules and/or the value of our
pension plan assets, which could require us to make increased
contributions to the pension plan in 2016 and beyond; 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 ability, or increase the cost, of financing to us; 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; the effects of severe weather events or other
natural or man-made disasters, which may increase our operating expenses
or adversely impact customer revenue; the impact of potential
information technology or data security breaches or other disruptions;
and the other factors that are described in our filings with the U.S.
Securities and Exchange Commission, including our reports on Forms 10-K
and 10-Q. These risks and uncertainties may cause our actual future
results to be materially different than those expressed in our
forward-looking statements. We do not undertake to update or revise
these forward-looking statements.
(1) Dividend payout ratio is a non-GAAP measure calculated as
common stock dividends ($123 million in Q2), divided by adjusted free
cash flow ($250 million in Q2). Adjusted free cash flow is a non-GAAP
measure of liquidity; the most directly comparable GAAP measure is net
cash provided by operating activities ($693 million for Q2). See
“Non-GAAP Measures” for a description of adjusted free cash flow and its
calculation. See Schedule A for a reconciliation to net cash provided by
operating activities.
(2) Adjusted EBITDA and adjusted EBITDA margin are non-GAAP
measures of performance. See “Non-GAAP Measures” for a description of
these non-GAAP measures and their calculation. See Schedule A for a
reconciliation to net loss.
(3) Adjusted free cash flow is a non-GAAP measure of
liquidity. See “Non-GAAP Measures” for a description of adjusted free
cash flow and its calculation.
(4) Adjusted free cash flow and dividend payout ratio are
non-GAAP measures. See note 1, above.
(5) Frontier does not provide guidance for the most directly
comparable GAAP measure to adjusted free cash flow, because such
guidance for net cash provided from operating activities cannot be
prepared without unreasonable effort. We do not provide guidance for
certain reconciling items between adjusted free cash flow and net cash
provided by operating activities. In addition, some reconciling items,
including changes in current assets and liabilities, cannot reasonably
be predicted and/or are not within our control. As a qualitative matter,
after taking these items into consideration, factors that will cause
adjusted free cash flow to increase or decrease are likely to have a
similar effect on net cash provided from operating activities. Actual
results for these two liquidity measures may vary materially from each
other.
|
|
Frontier Communications Corporation Consolidated Financial Data |
|
|
|
| | |
| | |
| | |
| | |
| | |
| | | |
For the quarter ended
| |
For the six months ended
|
| | | | June 30,
| | March 31,
| | June 30,
| | June 30,
|
($ in millions and shares in thousands,
except per share amounts) | | | |
2016
| |
2016
| |
2015
| |
2016
| |
2015
|
| | | | | | | | | | | | | | | | |
|
| Statement of Operations Data | | | | | | | | | | | | | | | | | |
|
Revenue
| | | |
$
|
2,608
| |
$
|
1,355
| |
$
|
1,368
| |
$
|
3,963
| |
$
|
2,739
|
| | | | | | | | | | | | | | | | |
|
|
Operating expenses:
| | | | | | | | | | | | | | | | | |
|
Network access expenses
| | | | |
453
| | |
160
| | |
161
| | |
613
| | |
316
|
|
Network related expenses
| | | | |
546
| | |
326
| | |
313
| | |
872
| | |
638
|
|
Selling, general and administrative expenses
| | | | |
596
| | |
357
| | |
331
| | |
953
| | |
661
|
|
Depreciation and amortization
| | | | |
575
| | |
316
| | |
335
| | |
891
| | |
676
|
|
Acquisition and integration costs
| | | |
|
127
| |
|
138
| |
|
35
| |
|
265
| |
|
92
|
|
Total operating expenses
| | | |
|
2,297
| |
|
1,297
| |
|
1,175
| |
|
3,594
| |
|
2,383
|
| | | | | | | | | | | | | | | | |
|
|
Operating income
| | | | |
311
| | |
58
| | |
193
| | |
369
| | |
356
|
| | | | | | | | | | | | | | | | |
|
|
Investment and other income, net
| | | | |
-
| | |
11
| | |
1
| | |
11
| | |
2
|
|
Interest expense
| | | |
|
386
| |
|
373
| |
|
260
| |
|
759
| |
|
505
|
| | | | | | | | | | | | | | | | |
|
|
Loss before income taxes
| | | | |
(75)
| | |
(304)
| | |
(66)
| | |
(379)
| | |
(147)
|
|
Income tax benefit
| | | |
|
(48)
| |
|
(118)
| |
|
(38)
| |
|
(166)
| |
|
(68)
|
| | | | | | | | | | | | | | | | |
|
| Net loss | | | | |
(27)
| | |
(186)
| | |
(28)
| | |
(213)
| | |
(79)
|
| | | | | | | | | | | | | | | | |
|
|
Less: Dividends on preferred stock
| | | | |
53
| | |
54
| | |
-
| | |
107
| | |
-
|
| Net loss attributable to Frontier | | | |
|
| |
|
| |
|
| |
|
| |
|
|
| common shareholders | | | |
$
|
(80)
| |
$
|
(240)
| |
$
|
(28)
| |
$
|
(320)
| |
$
|
(79)
|
| | | | | | | | | | | | | | | | |
|
|
Weighted average shares outstanding - basic and diluted
| | | | |
1,164,262
| | |
1,164,041
| | |
1,037,407
| | |
1,164,083
| | |
1,018,976
|
| | | | | | | | | | | | | | | | |
|
| Basic and diluted net loss per common share | | | |
$
|
(0.07)
| |
$
|
(0.21)
| |
$
|
(0.03)
| |
$
|
(0.28)
| |
$
|
(0.08)
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| Other Financial Data: | | | | | | | | | | | | | | | | | |
|
Capital expenditures - Business operations
| | | |
$
|
350
| |
$
|
207
| |
$
|
178
| |
$
|
557
| |
$
|
348
|
|
Capital expenditures - Integration activities
| | | | |
36
| | |
52
| | |
28
| | |
88
| | |
38
|
|
Dividends paid - Common Stock
| | | | |
123
| | |
123
| | |
106
| | |
246
| | |
211
|
|
Dividends paid - Preferred Stock
| | | | |
53
| | |
54
| | |
-
| | |
107
| | |
-
|
| | | | | | | | | | | | | | | | |
|
|
|
Frontier Communications Corporation Consolidated Financial Data |
|
|
|
| | |
| | |
| | |
| | |
| | |
| | | |
For the quarter ended
|
| | | | June 30, 2016 | | | | | |
| | | |
Consolidated
| | |
CTF
| |
Frontier
| | March 31,
| | June 30,
|
($ in millions) | | | |
Amount
| |
|
Operations
| |
Legacy
| |
2016
| |
2015
|
| | | | | | | | | | | | | | | | |
|
| Selected Statement of | | | | | | | | | | | | | | | | | |
| Operations Data | | | | | | | | | | | | | | | | | |
| Revenue: | | | | | | | | | | | | | | | | | |
|
Voice services
| | | |
$
|
836
| |
$
|
379
| |
$
|
457
| |
$
|
467
| |
$
|
515
|
|
Data and internet services
| | | | |
1,048
| | |
463
| | |
585
| | |
587
| | |
584
|
|
Video
| | | | |
419
| | |
351
| | |
68
| | |
67
| | |
72
|
|
Other
| | | |
|
78
| |
|
20
| |
|
58
| |
|
68
| |
|
65
|
|
Customer revenue
| | | | |
2,381
| | |
1,213
| | |
1,168
| | |
1,189
| | |
1,236
|
|
Switched access and subsidy
| | | |
|
227
| |
|
69
| |
|
158
| |
|
166
| |
|
132
|
|
Total revenue
| | | |
$
|
2,608
| |
$
|
1,282
| |
$
|
1,326
| |
$
|
1,355
| |
$
|
1,368
|
| | | | | | | | | | | | | | | | |
|
| Other Financial Data | | | | | | | | | | | | | | | | | |
| Revenue: | | | | | | | | | | | | | | | | | |
|
Residential
| | | |
$
|
1,332
| |
$
|
753
| |
$
|
579
| |
$
|
583
| |
$
|
615
|
|
Business
| | | |
|
1,049
| |
|
460
| |
|
589
| |
|
606
| |
|
621
|
|
Customer revenue
| | | | |
2,381
| | |
1,213
| | |
1,168
| | |
1,189
| | |
1,236
|
|
Switched access and subsidy
| | | |
|
227
| |
|
69
| |
|
158
| |
|
166
| |
|
132
|
|
Total revenue
| | | |
$
|
2,608
| |
$
|
1,282
| |
$
|
1,326
| |
$
|
1,355
| |
$
|
1,368
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| Operating Expenses | | | | | | | | | | | | | | | | | |
|
Network access expenses
| | | |
$
|
453
| |
$
|
298
| |
$
|
155
| |
$
|
160
| |
$
|
161
|
|
Network related expenses
| | | | |
546
| | |
218
| | |
328
| | |
326
| | |
313
|
|
Selling, general and administrative expenses
| | | | |
596
| | |
240
| | |
356
| | |
357
| | |
331
|
|
Acquisition and integration costs
| | | |
|
127
| |
|
-
| |
|
127
| |
|
138
| |
|
35
|
|
Cost and expenses (exclusive of depreciation
| | | | |
1,722
| | |
756
| | |
966
| | |
981
| | |
840
|
|
and amortization)
| | | | | | | | | | | | | | | | | |
|
Depreciation and amortization
| | | |
|
575
| |
|
262
| |
|
313
| |
|
316
| |
|
335
|
| Total Operating Expenses | | | |
$
|
2,297
| |
$
|
1,018
| |
$
|
1,279
| |
$
|
1,297
| |
$
|
1,175
|
| | | | | | | | | | | | | | | | |
|
|
|
Frontier Communications Corporation Consolidated Financial Data |
|
|
|
| | |
| | |
| | |
| | |
| | | |
For the six months ended
|
| | | | June 30, 2016 | | | |
| | | |
Consolidated
| | |
CTF
| |
Frontier
| | June 30,
|
($ in millions) | | | |
Amount
| | |
Operations
| |
Legacy
| |
2015
|
| | | | | | | | | | | | | |
|
| Selected Statement of | | | | | | | | | | | | | | |
| Operations Data | | | | | | | | | | | | | | |
| Revenue: | | | | | | | | | | | | | | |
|
Voice services
| | | |
$
|
1,303
| |
$
|
379
| |
$
|
924
| |
$
|
1,040
|
|
Data and internet services
| | | | |
1,635
| | |
463
| | |
1,172
| | |
1,159
|
|
Video
| | | | |
487
| | |
351
| | |
136
| | |
143
|
|
Other
| | | |
|
145
| |
|
20
| |
|
125
| |
|
127
|
|
Customer revenue
| | | | |
3,570
| | |
1,213
| | |
2,357
| | |
2,469
|
|
Switched access and subsidy
| | | |
|
393
| |
|
69
| |
|
324
| |
|
270
|
|
Total revenue
| | | |
$
|
3,963
| |
$
|
1,282
| |
$
|
2,681
| |
$
|
2,739
|
| | | | | | | | | | | | | |
|
| Other Financial Data | | | | | | | | | | | | | | |
| Revenue: | | | | | | | | | | | | | | |
|
Residential
| | | |
$
|
1,915
| |
$
|
753
| |
$
|
1,162
| |
$
|
1,232
|
|
Business
| | | |
|
1,655
| |
|
460
| |
|
1,195
| |
|
1,237
|
|
Customer revenue
| | | | |
3,570
| | |
1,213
| | |
2,357
| | |
2,469
|
|
Switched access and subsidy
| | | |
|
393
| |
|
69
| |
|
324
| |
|
270
|
|
Total revenue
| | | |
$
|
3,963
| |
$
|
1,282
| |
$
|
2,681
| |
$
|
2,739
|
| | | | | | | | | | | | | |
|
| Operating Expenses | | | | | | | | | | | | | | |
|
Network access expenses
| | | |
$
|
613
| |
$
|
298
| |
$
|
315
| |
$
|
316
|
|
Network related expenses
| | | | |
872
| | |
218
| | |
654
| | |
638
|
|
Selling, general and administrative expenses
| | | | |
953
| | |
240
| | |
713
| | |
661
|
|
Acquisition and integration costs
| | | |
|
265
| |
|
-
| |
|
265
| |
|
92
|
|
Cost and expenses (exclusive of depreciation
| | | | |
2,703
| | |
756
| | |
1,947
| | |
1,707
|
|
and amortization)
| | | | | | | | | | | | | | |
|
Depreciation and amortization
| | | |
|
891
| |
|
262
| |
|
629
| |
|
676
|
| Total Operating Expenses | | | |
$
|
3,594
| |
$
|
1,018
| |
$
|
2,576
| |
$
|
2,383
|
| | | | | | | | | | | | | |
|
|
|
Frontier Communications Corporation Consolidated Financial and Operating Data |
|
|
|
| | | | | |
| | |
| | | | | |
| | | |
For the quarter ended
| |
For the six months ended
|
| | | | June 30,
| | March 31,
| | June 30,
| | June 30,
|
| | | |
2016
| |
2016
| |
2015
| |
2016
| |
2015
|
| | | | | | | | | | | | | | | | |
|
| Customers (in thousands) | | | | |
5,771
| (1) | |
3,372
| | |
3,474
| | |
5,771
| (1) | |
3,474
|
| Residential customer metrics: | | | | | | | | | | | | | | | | | |
|
Customers (in thousands)
| | | | |
5,243
| (1) | |
3,088
| | |
3,175
| | |
5,243
| (1) | |
3,175
|
|
Average monthly residential
| | | | | | | | | | | | | | | | | |
|
revenue per customer
| | | |
$
|
83.20
| |
$
|
62.64
| |
$
|
64.43
| |
$
|
72.88
| |
$
|
64.31
|
|
Customer monthly churn
| | | | |
1.91%
| | |
1.83%
| | |
1.78%
| | |
1.87%
| | |
1.78%
|
| | | | | | | | | | | | | | | | |
|
| Business customer metrics: | | | | | | | | | | | | | | | | | |
|
Customers (in thousands)
| | | | |
528
| (1) | |
284
| | |
299
| | |
528
| (1) | |
299
|
|
Average monthly business
| | | | | | | | | | | | | | | | | |
|
revenue per customer
| | | |
$
|
658.00
| |
$
|
704.10
| |
$
|
689.21
| |
$
|
680.93
| |
$
|
684.58
|
| | | | | | | | | | | | | | | | |
|
| Employees | | | | |
30,308
| | |
20,416
| | |
18,183
| | |
30,308
| | |
18,183
|
| Broadband subscribers (in thousands) | | | | |
4,570
| (2) | |
2,487
| | |
2,406
| | |
4,570
| (2) | |
2,406
|
| Video subscribers (in thousands) | | | | |
1,628
| (2) | |
543
| | |
569
| | |
1,628
| (2) | |
569
|
| | | | | | | | | | | | | | | | |
|
| (1) |
|
2,336,000 residential customers, 250,000 business customers and
2,586,000 total customers were acquired at the time of the April
2016 Verizon Acquisition.
|
| (2) | |
2,160,000 broadband subscribers and 1,197,000 video subscribers were
acquired at the time of the April 2016 Verizon Acquisition.
|
| |
|
|
|
|
| | |
| | |
Frontier Communications Corporation Condensed Consolidated Balance Sheet Data |
| | | | | | | |
|
($ in millions) | | | | June 30, 2016 | | December 31, 2015 |
| | | | | | | |
|
ASSETS | | | | | | | | |
|
Current assets:
| | | | | | | | |
|
Cash and cash equivalents
| | | |
$
|
683
| |
$
|
936
|
|
Accounts receivable, net
| | | | |
1,034
| | |
571
|
|
Restricted cash
| | | | |
-
| | |
8,444
|
|
Other current assets
| | | |
|
164
| |
|
180
|
|
Total current assets
| | | | |
1,881
| | |
10,131
|
| | | | | | | |
|
|
Property, plant and equipment, net
| | | | |
16,161
| | |
8,493
|
|
Other assets - principally goodwill
| | | |
|
11,414
| |
|
8,460
|
|
Total assets
| | | |
$
|
29,456
| |
$
|
27,084
|
| | | | | | | |
|
LIABILITIES AND EQUITY | | | | | | | | |
|
Current liabilities:
| | | | | | | | |
|
Long-term debt due within one year
| | | |
$
|
1,043
| |
$
|
384
|
|
Accounts payable and other current liabilities
| | | |
|
2,149
| |
|
1,509
|
|
Total current liabilities
| | | | |
3,192
| | |
1,893
|
| | | | | | | |
|
|
Deferred income taxes and other liabilities
| | | | |
4,279
| | |
4,069
|
|
Long-term debt
| | | | |
16,923
| | |
15,508
|
|
Equity
| | | |
|
5,062
| |
|
5,614
|
|
Total liabilities and equity
| | | |
$
|
29,456
| |
$
|
27,084
|
| | | | | | | |
|
|
|
Frontier Communications Corporation Consolidated Cash Flow Data |
|
|
|
| | |
| | |
| | | |
For the six months ended June 30,
|
($ in millions) | | | |
2016
| |
2015
|
| | | | | | | |
|
| Cash flows provided from (used by) operating activities: | | | | | | | | |
|
Net loss
| | | |
$
|
(213)
| |
$
|
(79)
|
|
Adjustments to reconcile net loss to net cash provided from (used by)
| | | | | | | | |
|
operating activities:
| | | | | | | | |
|
Depreciation and amortization
| | | | |
891
| | |
676
|
|
Pension/OPEB costs
| | | | |
35
| | |
-
|
|
Stock based compensation expense
| | | | |
15
| | |
12
|
|
Amortization of deferred financing costs
| | | | |
28
| | |
138
|
|
Other non-cash adjustments
| | | | |
2
| | |
(10)
|
|
Deferred income taxes
| | | | |
(171)
| | |
115
|
|
Change in accounts receivable
| | | | |
(141)
| | |
77
|
|
Change in accounts payable and other liabilities
| | | | |
170
| | |
(99)
|
|
Change in other current assets
| | | |
|
15
| |
|
(214)
|
| Net cash provided from operating activities | | | | |
631
| | |
616
|
| | | | | | | |
|
| Cash flows provided from (used by) investing activities: | | | | | | | | |
|
Cash paid for the Verizon Acquisition
| | | | |
(9,886)
| | |
-
|
|
Capital expenditures - Business operations
| | | | |
(557)
| | |
(348)
|
|
Capital expenditures - Integration activities
| | | | |
(88)
| | |
(38)
|
|
Network expansion funded by Connect America Fund - Phase I
| | | | |
-
| | |
(16)
|
|
Cash transferred from/(to) escrow
| | | | |
8,444
| | |
(1,840)
|
|
Cash paid for an acquisition, net of cash acquired
| | | | |
-
| | |
(16)
|
|
Other
| | | |
|
6
| |
|
1
|
| Net cash used by investing activities | | | | |
(2,081)
| | |
(2,257)
|
| | | | | | | |
|
| Cash flows provided from (used by) financing activities: | | | | | | | | |
|
Proceeds from long-term debt borrowings
| | | | |
1,625
| | |
3
|
|
Financing costs paid
| | | | |
(7)
| | |
-
|
|
Long-term debt payments
| | | | |
(69)
| | |
(250)
|
|
Proceeds from issuance of common stock, net
| | | | |
-
| | |
799
|
|
Proceeds from issuance of preferred stock, net
| | | | |
-
| | |
1,866
|
|
Dividends paid on common stock
| | | | |
(246)
| | |
(211)
|
|
Dividends paid on preferred stock
| | | | |
(107)
| | |
-
|
|
Other
| | | |
|
1
| |
|
(2)
|
| Net cash provided from financing activities | | | | |
1,197
| | |
2,205
|
| | | | | | | |
|
|
Increase/(Decrease) in cash and cash equivalents
| | | | |
(253)
| | |
564
|
|
Cash and cash equivalents at January 1,
| | | |
|
936
| |
|
682
|
| | | | | | | |
|
| Cash and cash equivalents at June 30, | | | |
$
|
683
| |
$
|
1,246
|
| | | | | | | |
|
| Supplemental cash flow information: | | | | | | | | |
| Cash paid (received) during the period for: | | | | | | | | |
|
Interest
| | | |
$
|
711
| |
$
|
358
|
|
Income taxes (refunds), net
| | | |
$
|
(32)
| |
$
|
20
|
|
|
Schedule A |
Frontier Communications Corporation Reconciliation of Non-GAAP Financial Measures |
|
|
|
| | |
| | |
| | |
| | |
| | |
| | | |
For the quarter ended
| |
For the six months ended
|
| | | | June 30,
| | March 31,
| | June 30,
| | June 30,
|
($ in millions) | | | |
2016
| |
2016
| |
2015
| |
2016
| |
2015
|
| | | | | | | | | | | | | | | | |
|
EBITDA | | | | | | | | | | | | | | | | | |
|
Net Loss
| | | |
$
|
(27)
| |
$
|
(186)
| |
$
|
(28)
| |
$
|
(213)
| |
$
|
(79)
|
| Add back (subtract): | | | | | | | | | | | | | | | | | |
|
Income tax benefit
| | | | |
(48)
| | |
(118)
| | |
(38)
| | |
(166)
| | |
(68)
|
|
Interest expense
| | | | |
386
| | |
373
| | |
260
| | |
759
| | |
505
|
|
Investment and other income, net
| | | |
|
-
| |
|
(11)
| |
|
(1)
| |
|
(11)
| |
|
(2)
|
|
Operating income
| | | | |
311
| | |
58
| | |
193
| | |
369
| | |
356
|
| | | | | | | | | | | | | | | | |
|
|
Depreciation and amortization
| | | |
|
575
| |
|
316
| |
|
335
| |
|
891
| |
|
676
|
| EBITDA | | | | | 886 | | | 374 | | | 528 | | | 1,260 | | | 1,032 |
| | | | | | | | | | | | | | | | |
|
| Add back: | | | | | | | | | | | | | | | | | |
|
Acquisition and integration costs
| | | | |
127
| | |
138
| | |
35
| | |
265
| | |
92
|
|
Pension/OPEB costs (1) | | | |
|
19
| |
|
16
| |
|
(2)
| |
|
35
| |
|
-
|
| Adjusted EBITDA | | | | $ | 1,032 | | $ | 528 | | $ | 561 | | $ | 1,560 | | $ | 1,124 |
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
|
EBITDA margin
| | | | |
34.0%
| | |
27.6%
| | |
38.6%
| | |
31.8%
| | |
37.6%
|
|
Adjusted EBITDA margin
| | | | |
39.6%
| | |
38.9%
| | |
41.0%
| | |
39.4%
| | |
41.0%
|
| | | | | | | | | | | | | | | | |
|
Free Cash Flow | | | | | | | | | | | | | | | | | |
|
Net cash provided from (used by)
| | | | | | | | | | | | | | | | | |
|
operating activities
| | | |
$
|
693
| |
$
|
(62)
| |
$
|
367
| |
$
|
631
| |
$
|
616
|
| Add back (subtract): | | | | | | | | | | | | | | | | | |
|
Capital expenditures - Business operations
| | | | |
(350)
| | |
(207)
| | |
(178)
| | |
(557)
| | |
(348)
|
|
Acquisition and integration costs
| | | | |
127
| | |
138
| | |
35
| | |
265
| | |
92
|
|
Deferred income taxes
| | | | |
52
| | |
119
| | |
(148)
| | |
171
| | |
(115)
|
|
Income tax benefit
| | | | |
(48)
| | |
(118)
| | |
(38)
| | |
(166)
| | |
(68)
|
|
Dividends on preferred stock
| | | | |
(53)
| | |
(54)
| | |
-
| | |
(107)
| | |
-
|
|
Non-cash (gains)/losses, net
| | | | |
(35)
| | |
(45)
| | |
(81)
| | |
(80)
| | |
(140)
|
|
Changes in current assets and liabilities
| | | | |
(162)
| | |
118
| | |
168
| | |
(44)
| | |
235
|
|
Pension/OPEB costs (1) | | | | |
19
| | |
16
| | |
(2)
| | |
35
| | |
-
|
|
Cash paid (refunded) for income taxes
| | | | |
-
| | |
32
| | |
(3)
| | |
32
| | |
(20)
|
|
Stock based compensation
| | | | |
7
| | |
8
| | |
5
| | |
15
| | |
12
|
|
Interest expense - commitment fees(2) | | | | |
-
| | |
10
| | |
75
| | |
10
| | |
132
|
| | | |
|
| |
|
| |
|
| |
|
| |
|
|
| Free cash flow | | | | $ | 250 | | $ | (45) | | $ | 200 | | $ | 205 | | $ | 396 |
|
Dividends on preferred stock
| | | | |
-
| | |
54
| | |
-
| | |
54
| | |
-
|
|
Incremental interest on new debt
| | | |
|
-
| |
|
178
| |
|
-
| |
|
178
| |
|
-
|
| Adjusted free cash flow | | | | $ | 250 | | $ | 187 | | $ | 200 | | $ | 437 | | $ | 396 |
| | | | | | | | | | | | | | | | |
|
| (1) |
|
Reflects pension and other postretirement benefit (OPEB) expense,
net of capitalized amounts, of $28 million, $21 million and $18
million for the quarters ended June 30, 2016, March 31, 2016 and
June 30, 2015, respectively, less cash pension contributions and
certain OPEB costs/payments of $9 million, $5 million and $20
million for the quarters ended June 30, 2016, March 31, 2016 and
June 30, 2015, respectively. Reflects pension and OPEB expense, net
of capitalized amounts, of $49 million and $37 million for the six
months ended June 30, 2016 and 2015, respectively, less cash pension
contributions and certain OPEB costs/payments of $14 million and $37
million for the six months ended June 30, 2016 and 2015,
respectively.
|
| (2) | |
Includes interest expense of $10 million and $75 million for the
quarters ended March 31, 2016 and June 30, 2015, respectively, and
$10 million and $132 million for the six months ended June 30, 2016
and 2015, respectively, related to commitment fees on bridge loan
facilities.
|
| |
|
|
|
Schedule B |
Frontier Communications Corporation Reconciliation of Non-GAAP Financial Measures |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
For the quarter ended
|
| | | June 30, 2016 | | March 31, 2016 | | June 30, 2015 |
($ in millions, except per share amounts) | | |
Net Income (Loss)
| |
Basic Earnings (Loss) Per Share
| |
Net Income (Loss)
| |
Basic Earnings (Loss) Per Share
| |
Net Income
(Loss)
| |
Basic Earnings (Loss) Per Share
|
| | | | | | | | | | | | | | | | | | |
|
|
Net loss attributable to
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
|
Frontier common shareholders
| | |
$
|
(80)
| |
$
|
(0.07)
| |
$
|
(240)
| |
$
|
(0.21)
| |
$
|
(28)
| |
$
|
(0.03)
|
| | | | | | | | | | | | | | | | | | |
|
|
Acquisition and integration costs
| | | |
127
| | | | | |
138
| | | | | |
35
| | | |
|
Acquisition related interest expense (1) | | | |
-
| | | | | |
188
| | | | | |
75
| | | |
|
Certain other tax items (2) | | | |
(17)
| | | | | |
-
| | | | | |
(15)
| | | |
|
Income tax effect on above items:
| | | | | | | | | | | | | | | | | | | |
|
Acquisition and integration costs
| | | |
(51)
| | | | | |
(53)
| | | | | |
(12)
| | | |
|
Acquisition related interest expense
| | |
|
-
| |
|
| |
|
(73)
| |
|
| |
|
(28)
| |
|
|
| | | |
59
| | |
0.05
| | |
200
| | |
0.17
| | |
55
| | |
0.06
|
|
Dividends on preferred stock
| | |
|
-
| |
|
-
| |
|
54
| |
|
0.05
| |
|
-
| |
|
-
|
| | | | | | | | | | | | | | | | | | |
|
|
Adjusted net income (loss) attributable to
| | | | | | | | | | | | | | | | | | | |
|
Frontier common shareholders(3) | | |
$
|
(21)
| |
$
|
(0.02)
| |
$
|
14
| |
$
|
0.01
| |
$
|
27
| |
$
|
0.03
|
| | | | | | | | | | | | | | | | | | |
|
| | |
For the six months ended
|
| | | June 30, 2016 | | | | June 30, 2015 |
| | |
Net Income (Loss)
| |
Basic Earnings (Loss) Per Share
| | | | | |
Net Income (Loss)
| |
Basic Earnings (Loss) Per Share
|
| | | | | | | | | | | | | | | | | | |
|
|
Net loss attributable to
| | | | | | | | | | | | | | | | | | | |
|
Frontier common shareholders
| | |
$
|
(320)
| |
$
|
(0.28)
| | | | | | | |
$
|
(79)
| |
$
|
(0.08)
|
| | | | | | | | | | | | | | | | | | |
|
|
Acquisition and integration costs
| | | |
265
| | | | | | | | | | | |
92
| | | |
|
Acquisition related interest expense (1) | | | |
188
| | | | | | | | | | | |
132
| | | |
|
Certain other tax items (2) | | | |
(17)
| | | | | | | | | | | |
(15)
| | | |
|
Income tax effect on above items:
| | | | | | | | | | | | | | | | | | | |
|
Acquisition and integration costs
| | | |
(104)
| | | | | | | | | | | |
(34)
| | | |
|
Acquisition related interest expense
| | |
|
(73)
| |
|
| | | | | | | |
|
(48)
| |
|
|
| | | |
259
| | |
0.22
| | | | | | | | |
127
| | |
0.13
|
|
Dividends on preferred stock
| | | |
54
| | |
0.05
| | | | | | | | |
-
| | |
-
|
| | | | | | | | | | | | | | | | | | |
|
|
Adjusted net income (loss) attributable to
| | |
|
| |
|
| | | | | | | |
|
| |
|
|
|
Frontier common shareholders(3) | | |
$
|
(7)
| |
$
|
(0.01)
| | | | | | | |
$
|
48
| |
$
|
0.05
|
| | | | | | | | | | | | | | | | | | |
|
| (1) |
|
Represents interest expense related to commitment fees on bridge
loan facilities in connection with the Verizon transaction. Also
includes interest expense related to the September 2015 private debt
offering in connection with financing the Verizon transaction.
|
| (2) | |
Includes impact arising from federal research and development
credits, the domestic production activities deduction, changes in
certain deferred tax balances, state tax law changes, state filing
method change and the net impact of uncertain tax positions.
|
| (3) | |
Adjusted net income (loss) attributable to Frontier common
shareholders may not sum due to rounding.
|
| |
|
|
|
Schedule C |
Frontier Communications Corporation Reconciliation of Non-GAAP Financial Measures |
|
|
|
| | |
| | |
| | |
| | |
| | |
| | | |
For the quarter ended
|
| | | | June 30, 2016 | | | | | | |
| | | |
Consolidated
| |
CTF
| |
Frontier
| | March 31,
| | June 30,
|
($ in millions) | | | |
Amount
| |
Operations
| |
Legacy
| |
2016
| |
2015
|
| | | | | | | | | | | | | | | | |
|
Adjusted Operating Expenses | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
|
| Total operating expenses | | | | $ | 2,297 | | $ | 1,018 | | $ | 1,279 | | $ | 1,297 | | $ | 1,175 |
| | | | | | | | | | | | | | | | |
|
| Subtract: | | | | | | | | | | | | | | | | | |
|
Depreciation and amortization
| | | | |
575
| | |
262
| | |
313
| | |
316
| | |
335
|
|
Acquisition and integration costs
| | | | |
127
| | |
-
| | |
127
| | |
138
| | |
35
|
|
Pension/OPEB costs
| | | |
|
19
| |
|
1
| |
|
18
| |
|
16
| |
|
(2)
|
| Adjusted operating expenses | | | | $ | 1,576 | | $ | 755 | | $ | 821 | | $ | 827 | | $ | 807 |
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| | | |
For the six months ended
| | | |
| | | | June 30, 2016 | | | | | | |
| | | |
Consolidated
| |
CTF
| |
Frontier
| | June 30,
| | | |
| | | |
Amount
| |
Operations
| |
Legacy
| |
2015
| | | |
| | | | | | | | | | | | | | | | |
|
Adjusted Operating Expenses | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
|
| Total operating expenses | | | | $ | 3,594 | | $ | 1,018 | | $ | 2,576 | | $ | 2,383 | | | |
| | | | | | | | | | | | | | | | |
|
| Subtract: | | | | | | | | | | | | | | | | | |
|
Depreciation and amortization
| | | | |
891
| | |
262
| | |
629
| | |
676
| | | |
|
Acquisition and integration costs
| | | | |
265
| | |
-
| | |
265
| | |
92
| | | |
|
Pension/OPEB costs
| | | |
|
35
| |
|
1
| |
|
34
| |
|
-
| | | |
| Adjusted operating expenses | | | | $ | 2,403 | | $ | 755 | | $ | 1,648 | | $ | 1,615 | | | |
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
| | | |
For the quarter ended
| |
For the six months ended
|
| | | | June 30,
| | March 31,
| | June 30,
| | June 30,
|
Dividend Payout Ratio | | | |
2016
| |
2016
| |
2015
| |
2016
| |
2015
|
| | | | | | | | | | | | | | | | |
|
|
Numerator
| | | | | | | | | | | | | | | | | |
|
Dividends paid on common stock
| | | |
$
|
123
| |
$
|
123
| |
$
|
106
| |
$
|
246
| |
$
|
211
|
|
Less: Dividends on June 2015 common
| | | | | | | | | | | | | | | | | |
|
stock issuance
| | | |
|
-
| |
|
(18)
| |
|
-
| |
|
(18)
| |
|
-
|
| | | | $ | 123 | | $ | 105 | | $ | 106 | | $ | 228 | | $ | 211 |
| | | | | | | | | | | | | | | | |
|
|
Denominator
| | | | | | | | | | | | | | | | | |
|
Free cash flow (see Schedule A)
| | | |
$
|
250
| |
$
|
(45)
| |
$
|
200
| |
$
|
205
| |
$
|
396
|
|
Dividends on preferred stock
| | | | | - | | | 54 | | | - | | |
54
| | | - |
|
Incremental interest expense
| | | |
|
-
| |
|
178
| |
|
-
| |
|
178
| |
|
-
|
| Adjusted free cash flow | | | | $ | 250 | | $ | 187 | | $ | 200 | | $ | 437 | | $ | 396 |
| | | | | | | | | | | | | | | | |
|
| Dividend payout ratio | | | | | 49% | | | 56% | | | 53% | | | 52% | | | 53% |
| | | | | | | | | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160801006196/en/
Frontier Communications Corporation
Investors:
Luke Szymczak,
203-614-5044
VP, Investor Relations
luke.szymczak@FTR.com
or
Media:
Peter
DePasquale, 203-614-5097
VP, Corporate Communications
peter.depasquale@FTR.com
Source: Frontier Communications Corporation