1Q 2024 Highlights
Consolidated:
Total Wireless:
Total Broadband:
NEW YORK, April 22, 2024 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported first-quarter 2024 results with strong wireless service revenue, solid cash flow, adjusted EBITDA expansion and fixed wireless subscriber base growth.
“Our strong results show that our team is delivering. Our performance in the first quarter sets us up for a successful 2024,” said Verizon Chairman and CEO Hans Vestberg. “We are on track to meet our financial guidance and to deliver positive Consumer postpaid phone net adds for the year. Our fixed wireless subscriber base is continuing to grow rapidly, and our network remains the best in the industry, by far.”
For first-quarter 2024, Verizon reported earnings per share of $1.09, compared with earnings per share of $1.17 in first-quarter 2023. On an adjusted basis1, excluding special items, EPS was $1.15 in first-quarter 2024, compared with adjusted EPS1 of $1.20 in first-quarter 2023.
First quarter 2024 financial results reflected a pre-tax loss from special items of $327 million. This includes the amortization of intangible assets related to Tracfone and other acquisitions of $221 million, and a $106 million charge associated with a litigation matter related to a legacy contract for the production of telephone directories in Costa Rica by a subsidiary of Verizon.
Consolidated results: Verizon delivers on three key metrics: wireless service revenue, adjusted EBITDA and cash flow
Verizon Consumer
Verizon Business
Outlook and guidance: Verizon is on track to meet financial guidance
The company does not provide a reconciliation for any of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.
For 2024, Verizon continues to expect the following:
1Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).
2 Total wireless service revenue represents the sum of Consumer and Business segments.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed in 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenues of $134.0 billion in 2023. The company offers data, video and voice services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, and security.
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Forward-looking statementsIn this communication 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,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” 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: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors' use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; 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; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; and 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.
Non-GAAP Reconciliations - Consolidated Verizon | ||||||||||||||||||||
Consolidated EBITDA and Consolidated Adjusted EBITDA | ||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Unaudited | 3 Mos. Ended 3/31/24 | 3 Mos. Ended 12/31/23 | 3 Mos. Ended 9/30/23 | 3 Mos. Ended 6/30/23 | 3 Mos. Ended 3/31/23 | |||||||||||||||
Consolidated Net Income (Loss) | $ | 4,722 | $ | (2,573 | ) | $ | 4,884 | $ | 4,766 | $ | 5,018 | |||||||||
Add: | ||||||||||||||||||||
Provision for income taxes | 1,353 | 756 | 1,308 | 1,346 | 1,482 | |||||||||||||||
Interest expense | 1,635 | 1,599 | 1,433 | 1,285 | 1,207 | |||||||||||||||
Depreciation and amortization expense(1) | 4,445 | 4,516 | 4,431 | 4,359 | 4,318 | |||||||||||||||
Consolidated EBITDA | $ | 12,155 | $ | 4,298 | $ | 12,056 | $ | 11,756 | $ | 12,025 | ||||||||||
Add/(subtract): | ||||||||||||||||||||
Other (income) expense, net(2) | $ | (198 | ) | $ | 807 | $ | (170 | ) | $ | (210 | ) | $ | (114 | ) | ||||||
Equity in losses (earnings) of unconsolidated businesses | 9 | 11 | 18 | 33 | (9 | ) | ||||||||||||||
Severance charges | — | 296 | — | 237 | — | |||||||||||||||
Legacy legal matter | 106 | — | — | — | — | |||||||||||||||
Verizon Business Group goodwill impairment | — | 5,841 | — | — | — | |||||||||||||||
Asset rationalization | — | 325 | — | 155 | — | |||||||||||||||
Legal settlement | — | 100 | — | — | — | |||||||||||||||
Business transformation costs | — | — | 176 | — | — | |||||||||||||||
Non-strategic business shutdown | — | — | 158 | — | — | |||||||||||||||
(83 | ) | 7,380 | 182 | 215 | (123 | ) | ||||||||||||||
Consolidated Adjusted EBITDA | $ | 12,072 | $ | 11,678 | $ | 12,238 | $ | 11,971 | $ | 11,902 | ||||||||||
Footnotes: | ||||||||||||||||||||
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | ||||||||||||||||||||
(2) Includes Pension and benefits remeasurement adjustments, where applicable. |
Consolidated EBITDA and Consolidated Adjusted EBITDA (LTM) | ||||||
(dollars in millions) | ||||||
Unaudited | 12 Mos. Ended 3/31/24 | 12 Mos. Ended 12/31/23 | ||||
Consolidated Net Income | $ | 11,799 | $ | 12,095 | ||
Add: | ||||||
Provision for income taxes | 4,763 | 4,892 | ||||
Interest expense | 5,952 | 5,524 | ||||
Depreciation and amortization expense(1) | 17,751 | 17,624 | ||||
Consolidated EBITDA | $ | 40,265 | $ | 40,135 | ||
Add/(subtract): | ||||||
Other expense, net(2) | $ | 229 | $ | 313 | ||
Equity in losses of unconsolidated businesses | 71 | 53 | ||||
Severance charges | 533 | 533 | ||||
Legacy legal matter | 106 | — | ||||
Verizon Business Group goodwill impairment | 5,841 | 5,841 | ||||
Asset rationalization | 480 | 480 | ||||
Legal settlement | 100 | 100 | ||||
Business transformation costs | 176 | 176 | ||||
Non-strategic business shutdown | 158 | 158 | ||||
7,694 | 7,654 | |||||
Consolidated Adjusted EBITDA | $ | 47,959 | $ | 47,789 | ||
Footnotes: | ||||||
(1) Includes Amortization of acquisition-related intangible assets and a portion of the Non-strategic business shutdown, where applicable. | ||||||
(2) Includes Pension and benefits remeasurement adjustments, where applicable. |
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | |||||||||
(dollars in millions) | |||||||||
Unaudited | 3/31/24 | 12/31/23 | 3/31/23 | ||||||
Debt maturing within one year | $ | 15,594 | $ | 12,973 | $ | 12,081 | |||
Long-term debt | 136,104 | 137,701 | 140,772 | ||||||
Total Debt | 151,698 | 150,674 | 152,853 | ||||||
Less Secured debt | 23,290 | 22,183 | 20,835 | ||||||
Unsecured Debt | 128,408 | 128,491 | 132,018 | ||||||
Less Cash and cash equivalents | 2,365 | 2,065 | 2,234 | ||||||
Net Unsecured Debt | $ | 126,043 | $ | 126,426 | $ | 129,784 | |||
Consolidated Net Income (LTM) | $ | 11,799 | $ | 12,095 | |||||
Unsecured Debt to Consolidated Net Income Ratio | 10.9x | 10.6x | |||||||
Consolidated Adjusted EBITDA (LTM) | $ | 47,959 | $ | 47,789 | |||||
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio | 2.6x | 2.6x |
Adjusted Earnings per Common Share (Adjusted EPS) | ||||||||||||||||||||
(dollars in millions, except per share amounts) | ||||||||||||||||||||
Unaudited | 3 Mos. Ended 3/31/24 | 3 Mos. Ended 3/31/23 | ||||||||||||||||||
Pre-tax | Tax | After-Tax | Pre-tax | Tax | After-Tax | |||||||||||||||
EPS | $ | 1.09 | $ | 1.17 | ||||||||||||||||
Amortization of acquisition-related intangible assets | $ | 221 | $ | (56 | ) | $ | 165 | 0.04 | $ | 208 | $ | (53 | ) | $ | 155 | 0.04 | ||||
Legacy legal matter | 106 | (27 | ) | 79 | 0.02 | — | — | — | — | |||||||||||
$ | 327 | $ | (83 | ) | $ | 244 | $ | 0.06 | $ | 208 | $ | (53 | ) | $ | 155 | $ | 0.04 | |||
Adjusted EPS | $ | 1.15 | $ | 1.20 | ||||||||||||||||
Footnote: | ||||||||||||||||||||
Adjusted EPS may not add due to rounding. |
Free Cash Flow | ||||||||
(dollars in millions) | ||||||||
Unaudited | 3 Mos. Ended 3/31/24 | 3 Mos. Ended3/31/23 | ||||||
Net Cash Provided by Operating Activities | $ | 7,084 | $ | 8,289 | ||||
Capital expenditures (including capitalized software) | (4,376 | ) | (5,958 | ) | ||||
Free Cash Flow | $ | 2,708 | $ | 2,331 |
Non-GAAP Reconciliations - Segments | ||||||||
Segment EBITDA and Segment EBITDA Margin | ||||||||
Consumer | ||||||||
(dollars in millions) | ||||||||
Unaudited | 3 Mos. Ended3/31/24 | 3 Mos. Ended3/31/23 | ||||||
Operating Income | $ | 7,372 | $ | 7,099 | ||||
Add Depreciation and amortization expense | 3,309 | 3,214 | ||||||
Segment EBITDA | $ | 10,681 | $ | 10,313 | ||||
Year over year change % | 3.6 | % | ||||||
Total operating revenues | $ | 25,057 | $ | 24,857 | ||||
Operating Income Margin | 29.4 | % | 28.6 | % | ||||
Segment EBITDA Margin | 42.6 | % | 41.5 | % |
Business | ||||||||
(dollars in millions) | ||||||||
Unaudited | 3 Mos. Ended 3/31/24 | 3 Mos. Ended 3/31/23 | ||||||
Operating Income | $ | 399 | $ | 551 | ||||
Add Depreciation and amortization expense | 1,128 | 1,094 | ||||||
Segment EBITDA | $ | 1,527 | $ | 1,645 | ||||
Year over year change % | (7.2 | )% | ||||||
Total operating revenues | $ | 7,376 | $ | 7,494 | ||||
Operating Income Margin | 5.4 | % | 7.4 | % | ||||
Segment EBITDA Margin | 20.7 | % | 22.0 | % |
Media contact: |
Katie Magnotta |
201-602-9235 |
katie.magnotta@verizon.com |