EX-99 2 a2021q3exhibit99.htm EX-99 Document

Exhibit 99
vzlogoa58.jpg


News Release


FOR IMMEDIATE RELEASE
Media contacts:
October 20, 2021Kim Ancin
908.559.3227
kimberly.ancin@verizon.com
Eric Wilkens
908.559.3063
eric.wilkens@verizon.com


Verizon reports strong 3Q revenue growth momentum

Accelerated 5G adoption drives 3Q performance

3Q 2021 highlights
Consolidated:
•$1.55 in earnings per share (EPS), compared with $1.05 in third-quarter 2020; adjusted EPS*, excluding special items, of $1.41, compared with $1.25 in third-quarter 2020.
•Operating revenue of $32.9 billion, up 4.3 percent from third-quarter 2020. This includes two months of Verizon Media revenue of approximately $1.4 billion on a segment basis. Excluding Verizon Media*, operating revenues increased 5.5 percent.
•Net income of $6.6 billion, an increase of 45.5 percent from third-quarter 2020, and adjusted EBITDA* of $12.3 billion, an increase of 3.3 percent from third-quarter 2020.
•129,000 total broadband net additions, defined as wireline and fixed wireless.

Total Wireless:
•Total wireless service revenue of $17.1 billion, a 3.9 percent increase year over year, driven by higher access revenue, volume growth and products.
•Total retail postpaid churn of 0.94 percent, and retail postpaid phone churn of 0.74 percent.
•699,000 retail postpaid net additions, including 429,000 phone net additions, resulting in 122.0 million total retail connections. Phone net additions increased 51.6 percent year over year.





NEW YORK - Verizon Communications Inc. (NYSE, Nasdaq: VZ) reported third-quarter earnings today highlighted by revenue and customer growth as more than one in four Consumer wireless phone customers now have a 5G-capable device.
"We had a strong third quarter, delivering on our strategy and growing in multiple areas," said Verizon Chairman and CEO Hans Vestberg. "Our disciplined strategy execution demonstrated growth in 5G adoption, broadband subscribers and business applications. We are increasing our 2021 guidance, and we continue to expand our 4G LTE and 5G network leadership. We fully expect to have a strong finish to the year as we accelerate deployment of 5G to our customers across the country."
For third-quarter 2021, Verizon reported EPS of $1.55, compared with $1.05 in third-quarter 2020, a 47.6 percent increase year over year. On an adjusted basis*, third-quarter 2021 EPS, excluding special items, was $1.41, compared with adjusted EPS of $1.25 in third-quarter 2020, a 12.8 percent increase year over year.
Third-quarter 2021 EPS included a net pre-tax gain on the sale of Verizon Media to Apollo funds of $706 million, and a net pre-tax charge of approximately $247 million, which included a net charge of $144 million related to a mark-to-market adjustment for pension liabilities, and $103 million related to a severance charge for voluntary separations under existing plans. Third-quarter 2021 results also included two months of Verizon Media, as the sale closed on September 1.
“Verizon reported another quarter of strong financial and operating performance,” said Verizon Chief Financial Officer Matt Ellis. "We are seeing strong demand for connectivity across our Consumer and Business segments as our Mix and Match and Business Unlimited value propositions, network quality and unique partnerships are resonating with both new and existing customers. We grew revenue in the quarter, achieved solid cash flow, completed the sale of Verizon Media and increased the dividend for a 15th consecutive year."
Consolidated results
•Total consolidated operating revenues in third-quarter 2021 were $32.9 billion, up 4.3 percent from third-quarter 2020. These results included two months of Verizon Media revenue of approximately $1.4 billion on a segment basis. Excluding Verizon Media*, total consolidated operating revenues increased 5.5 percent.
•Year-to-date cash flow from operations totaled $31.2 billion, a decrease from $32.5 billion year over year. This decrease was primarily driven by lower cash taxes from a one-time benefit in 2020, as well as higher working capital requirements in 2021 due to greater volumes.
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•Capital expenditures year-to-date were $13.9 billion. Capital expenditures continue to support the growth in traffic on the company's 4G LTE network and the continued expansion of the company's 5G Ultra Wideband and 5G Nationwide networks. Capital expenditures related to C-Band were more than $1 billion year-to-date.
•The company ended third-quarter 2021 with free cash flow* of $17.3 billion.
•Verizon's unsecured debt balance increased year over year by $36.1 billion to $141.6 billion at the end of third-quarter 2021, remaining relatively flat sequentially from the end of second-quarter 2021. The company’s net unsecured debt* as of the end of third-quarter 2021 increased by $35.1 billion year over year to $131.6 billion, but improved by $5.2 billion sequentially from the end of second-quarter 2021, with its net unsecured debt to adjusted EBITDA ratio* at approximately 2.7 times. Verizon's cash balance of $9.9 billion at the end of third-quarter 2021 included the proceeds associated with the company's sale of Verizon Media.
Consumer results
•Consumer built momentum throughout third-quarter 2021 highlighted by its Mix and Match pricing and unique partnerships. Consumer continued to expand its leadership in 5G adoption, ending third-quarter 2021 with more than 25 percent of wireless phone customers having 5G-capable devices.
•Total Verizon Consumer revenues were $23.3 billion, an increase of 7.3 percent year over year. This increase was primarily driven by strong demand for connectivity and products.
•Consumer wireless service revenues were $14.0 billion in third-quarter 2021, a 4.0 percent increase year over year. Consumer grew phone net additions and continued to execute on its unlimited and premium unlimited migration strategy.
•Consumer wireless retail postpaid churn was 0.84 percent in third-quarter 2021, and wireless retail postpaid phone churn was 0.67 percent.
•In third-quarter 2021, Consumer reported 423,000 wireless retail postpaid net additions. This consisted of 267,000 phone net additions and 223,000 other connected device net additions, offset by 67,000 tablet net losses. Consumer's phone net additions in third-quarter 2021 were more than Consumer's phone net additions in both third-quarter 2020 and third-quarter 2019.
•The quality and reliability of the company's Fios service continued to drive strong demand as Consumer reported 98,000 Fios Internet net additions in third-quarter 2021. Consumer Fios revenues were $2.9 billion in third-quarter 2021, an increase of 4.3 percent year over year. Consumer reported 68,000 Fios Video net losses in third-quarter 2021.
•In third-quarter 2021, Consumer segment operating income was $7.6 billion, an increase of 2.1 percent year over year, and segment operating income margin was 32.5 percent, a decrease from 34.2 percent in third-quarter 2020. Segment EBITDA* totaled $10.5 billion in third-quarter 2021, an increase of 2.0 percent from third-quarter 2020, driven by high-quality service and other revenue gains from multiple growth vectors. Segment EBITDA margin* was 45.0 percent in third-quarter 2021, a decrease from 47.4 percent in third-quarter 2020.
Business results
•In third-quarter 2021, Business continued to see strong demand for wireless services across multiple verticals. Strong Small and Medium Business momentum, the best performing quarter year-to-date for wireless subscriber growth in Global Enterprise and an increase in activity with enterprises in the private wireless and MEC space led the quarter.
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•Total Verizon Business revenues were $7.7 billion, down 0.8 percent year over year. Wireless revenue growth continues to offset ongoing legacy wireline declines.
•Business wireless service revenues were $3.1 billion in third-quarter 2021, a 3.6 percent increase year over year.
•Business wireless retail postpaid churn was 1.29 percent in third-quarter 2021, and wireless retail postpaid phone churn was 1.04 percent.
•Business reported 276,000 wireless retail postpaid net additions in third-quarter 2021, including 162,000 phone net additions.
•In third-quarter 2021, Business segment operating income was $886 million, a decrease of 4.0 percent year over year, and segment operating income margin was 11.5 percent, a decrease from 11.9 percent in third-quarter 2020. Segment EBITDA* totaled $1.9 billion in third-quarter 2021, a decrease of 2.4 percent from third-quarter 2020. Segment EBITDA margin* was 24.8 percent, a decrease from 25.2 percent in third-quarter 2020, driven by wireline pressure.
Outlook and guidance
Verizon is updating financial guidance for full-year 2021.
•The company now expects total wireless service revenue growth of around 4 percent. This update is at the higher end of the prior guidance of 3.5 percent to 4 percent.
•The company now expects adjusted EPS* of $5.35 to $5.40, an update from prior guidance of $5.25 to $5.35.
Additionally, Verizon continues to expect the following results for full-year 2021:
•Adjusted effective income tax rate* in the range of 23 percent to 25 percent.
•Capital spending to be in the range of $17.5 billion to $18.5 billion, including the further expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to manage future traffic demands and the continued deployment of the company's fiber infrastructure. The company notes that its assumption for this guidance is dependent upon no material changes in the current state of the company's supply chain. Expenditures related to the deployment of the company's C-Band 5G network will be in addition to this amount, and the company previously announced an incremental $10 billion of capital expenditures from 2021 to 2023, of which $2 billion to $3 billion is expected in 2021.

*Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 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 $128.3 billion in 2020. 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, security and control.

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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 statements
In 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,” “believes,” “estimates,” “expects,” “hopes,” “forecasts,” “plans” 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: cyber attacks impacting our networks or systems and any resulting financial or reputational impact; natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial or reputational impact; the impact of the COVID-19 pandemic on our operations, our employees and the ways in which our customers use our networks and other products and services; disruption of our key suppliers’ or vendors' provisioning of products or services, including as a result of the COVID-19 pandemic; material adverse changes in labor matters and any resulting financial or operational impact; the effects of competition in the markets in which we operate; failure to take advantage 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; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; our high level of indebtedness; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in their interpretation; 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.
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Verizon Communications Inc.


Condensed Consolidated Statements of Income
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20%
Change		9 Mos. Ended 9/30/219 Mos. Ended 9/30/20%
Change
Operating Revenues
Service revenues and other$27,565 $27,431 0.5$83,709 $81,604 2.6
Wireless equipment revenues5,350 4,112 30.115,837 11,996 32.0
Total Operating Revenues32,915 31,543 4.399,546 93,600 6.4
Operating Expenses
Cost of services7,855 7,955 (1.3)24,199 23,348 3.6
Cost of wireless equipment5,673 4,379 29.617,106 13,031 31.3
Selling, general and administrative expense6,521 7,339 (11.1)21,246 23,080 (7.9)
Depreciation and amortization expense3,961 4,192 (5.5)12,155 12,523 (2.9)
Total Operating Expenses24,010 23,865 0.674,706 71,982 3.8
Operating Income8,905 7,678 16.024,840 21,618 14.9
Equity in earnings (losses) of unconsolidated businesses1 (9)*10 (34)*
Other income (expense), net269 (774)*1,172 (703)*
Interest expense(801)(1,044)(23.3)(2,746)(3,167)(13.3)
Income Before Provision For Income Taxes8,374 5,851 43.123,276 17,714 31.4
Provision for income taxes(1,820)(1,347)35.1(5,395)(4,084)32.1
Net Income$6,554 $4,504 45.5$17,881 $13,630 31.2
Net income attributable to noncontrolling interests$147 $147 —$429 $417 2.9
Net income attributable to Verizon6,407 4,357 47.117,452 13,213 32.1
Net Income$6,554 $4,504 45.5$17,881 $13,630 31.2
Basic Earnings Per Common Share
Net income attributable to Verizon$1.55 $1.05 47.6$4.21 $3.19 32.0
Weighted-average shares outstanding (in millions)4,142 4,140 4,141 4,139 
Diluted Earnings Per Common Share (1)
Net income attributable to Verizon$1.55 $1.05 47.6$4.21 $3.19 32.0
Weighted-average shares outstanding (in millions)4,144 4,142 4,143 4,141 
Footnotes:
 
(1)Diluted Earnings per Common Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represents the only potential dilution.
*Not meaningful

Verizon Communications Inc.


Condensed Consolidated Balance Sheets

(dollars in millions)
Unaudited9/30/2112/31/20$ Change
Assets
Current assets
Cash and cash equivalents$9,936 $22,171 $(12,235)
Accounts receivable23,165 25,169 (2,004)
Less Allowance for credit losses970 1,252 (282)
Accounts receivable, net22,195 23,917 (1,722)
Inventories2,303 1,796 507 
Prepaid expenses and other5,843 6,710 (867)
Total current assets40,277 54,594 (14,317)
Property, plant and equipment287,421 279,737 7,684 
Less Accumulated depreciation191,665 184,904 6,761 
Property, plant and equipment, net95,756 94,833 923 
Investments in unconsolidated businesses1,100 589 511 
Wireless licenses145,767 96,097 49,670 
Deposits for wireless licenses— 2,772 (2,772)
Goodwill24,887 24,773 114 
Other intangible assets, net7,022 9,413 (2,391)
Operating lease right-of-use assets27,969 22,531 5,438 
Other assets10,679 10,879 (200)
Total assets$353,457 $316,481 $36,976 
Liabilities and Equity
Current liabilities
Debt maturing within one year$7,623 $5,889 $1,734 
Accounts payable and accrued liabilities20,153 20,658 (505)
Current operating lease liabilities3,606 3,485 121 
Other current liabilities9,976 9,628 348 
Total current liabilities41,358 39,660 1,698 
Long-term debt143,352 123,173 20,179 
Employee benefit obligations16,516 18,657 (2,141)
Deferred income taxes38,481 35,711 2,770 
Non-current operating lease liabilities23,507 18,000 5,507 
Other liabilities11,754 12,008 (254)
Total long-term liabilities233,610 207,549 26,061 
Equity
Common stock429 429 — 
Additional paid in capital13,402 13,404 (2)
Retained earnings70,062 60,464 9,598 
Accumulated other comprehensive loss(709)(71)(638)
Common stock in treasury, at cost(6,630)(6,719)89 
Deferred compensation – employee stock ownership plans and other490 335 155 
Noncontrolling interests1,445 1,430 15 
Total equity78,489 69,272 9,217 
Total liabilities and equity$353,457 $316,481 $36,976 
Footnotes:

Certain amounts have been reclassified to conform to the current period presentation.




Verizon Communications Inc.


Consolidated - Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)
Unaudited9/30/2112/31/20
Total debt$150,975 $129,062 
Net unsecured debt$131,614 $96,287 
Net unsecured debt / Consolidated Adjusted EBITDA(1)
2.7x2.0x
Common shares outstanding end of period (in millions)4,140 4,138 
Total employees (‘000)118.5 132.2 
Quarterly cash dividends declared per common share$0.6400 $0.6275 
Footnotes: 

(1)Consolidated adjusted EBITDA excludes the effects of non-operational items and special items.

Verizon Communications Inc.


Condensed Consolidated Statements of Cash Flows
(dollars in millions)
Unaudited9 Mos. Ended 9/30/219 Mos. Ended 9/30/20$ Change
Cash Flows from Operating Activities
Net Income$17,881 $13,630 $4,251 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense12,155 12,523 (368)
Employee retirement benefits(1,928)867 (2,795)
Deferred income taxes2,970 530 2,440 
Provision for expected credit losses604 1,100 (496)
Equity in losses of unconsolidated businesses, net of dividends received32 67 (35)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses
603 1,345 (742)
Other, net(1,155)2,410 (3,565)
Net cash provided by operating activities31,162 32,472 (1,310)
Cash Flows from Investing Activities
Capital expenditures (including capitalized software)(13,861)(14,168)307 
Acquisitions of businesses, net of cash acquired(459)(507)48 
Acquisitions of wireless licenses(47,027)(3,757)(43,270)
Proceeds from disposition of business4,122 — 4,122 
Other, net207 (37)244 
Net cash used in investing activities(57,018)(18,469)(38,549)
Cash Flows from Financing Activities
Proceeds from long-term borrowings32,482 12,387 20,095 
Proceeds from asset-backed long-term borrowings2,695 4,439 (1,744)
Repayments of long-term borrowings and finance lease obligations(7,904)(8,853)949 
Repayments of asset-backed long-term borrowings(3,887)(6,726)2,839 
Dividends paid(7,797)(7,636)(161)
Other, net(2,120)(1,348)(772)
Net cash provided by (used in) financing activities13,469 (7,737)21,206 
Increase (decrease) in cash, cash equivalents and restricted cash(12,387)6,266 (18,653)
Cash, cash equivalents and restricted cash, beginning of period23,498 3,917 19,581 
Cash, cash equivalents and restricted cash, end of period$11,111 $10,183 $928 
Footnotes:

Certain amounts have been reclassified to conform to the current period presentation.

Verizon Communications Inc.


Consumer - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20%
Change		9 Mos. Ended 9/30/219 Mos. Ended 9/30/20%
Change
Operating Revenues
Service$16,891 $16,255 3.9$50,169 $48,496 3.4
Wireless equipment4,530 3,403 33.113,461 9,989 34.8
Other1,907 2,078 (8.2)5,973 6,129 (2.5)
Total Operating Revenues23,328 21,736 7.369,603 64,614 7.7
Operating Expenses
Cost of services4,149 3,971 4.512,330 11,786 4.6
Cost of wireless equipment4,611 3,411 35.213,857 10,161 36.4
Selling, general and administrative expense4,060 4,055 0.112,131 12,353 (1.8)
Depreciation and amortization expense2,918 2,862 2.08,679 8,531 1.7
Total Operating Expenses15,738 14,299 10.146,997 42,831 9.7
Operating Income$7,590 $7,437 2.1$22,606 $21,783 3.8
Operating Income Margin32.5 %34.2 %32.5 %33.7 %
Segment EBITDA$10,508 $10,299 2.0$31,285 $30,314 3.2
Segment EBITDA Margin45.0 %47.4 %44.9 %46.9 %
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.
 

Verizon Communications Inc.


Consumer - Selected Operating Statistics
Unaudited9/30/219/30/20% Change
Connections (‘000):
Wireless retail postpaid connections90,916 90,026 1.0
Wireless retail prepaid connections4,072 4,075 (0.1)
Total wireless retail connections94,988 94,101 0.9
Fios video connections3,642 3,926 (7.2)
Fios internet connections6,490 6,110 6.2
Fios digital voice residence connections3,094 3,384 (8.6)
Fios digital connections13,226 13,420 (1.4)
Wireline broadband connections 6,858 6,581 4.2
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20%
Change		9 Mos. Ended 9/30/219 Mos. Ended 9/30/20%
Change
Gross Additions (‘000):
Wireless retail postpaid 2,701 2,304 17.27,600 6,451 17.8
Net Additions Detail (‘000) :
Wireless retail postpaid (1)
423 136 *447 (317)*
Wireless retail prepaid (1)
(4)77 *33 5 *
Total wireless retail (1)
419 213 96.7480 (312)*
Wireless retail postpaid phones (1)
267 142 88.0239 (68)*
Fios video (68)(61)(11.5)(212)(226)6.2
Fios internet98 139 (29.5)288 208 38.5
Fios digital voice residence(71)(72)1.4(212)(236)10.2
Fios digital(41)6 *(136)(254)46.5
Wireline broadband (1)
75 113 (33.6)211 131 61.1
Churn Rate:
Wireless retail postpaid0.84 %0.80 %0.88 %0.84 %
Wireless retail postpaid phones0.67 %0.63 %0.69 %0.64 %
Wireless retail0.98 %0.95 %1.02 %1.00 %
Revenue Statistics (in millions):
Wireless service revenue$13,982 $13,442 4.0$41,460 $40,005 3.6
Fios revenues$2,893 $2,773 4.3$8,648 $8,326 3.9

Verizon Communications Inc.


Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20%
Change		9 Mos. Ended 9/30/219 Mos. Ended 9/30/20%
Change
Other Wireless Statistics:
Wireless retail postpaid ARPA (2)
$123.04 $118.52 3.8$121.71 $117.80 3.3
Wireless retail postpaid upgrade rate
4.7 %4.2 %
Wireless retail postpaid accounts (‘000) (3)
33,640 33,712 (0.2)
Wireless retail postpaid connections per account (3)
2.70 2.67 1.1
Total wireless internet postpaid base (3)
16.2 %15.9 %
Footnotes:

(1) Connection net additions include certain adjustments.

(2) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.

(3) Statistics presented as of end of period.

Certain intersegment transactions with corporate entities have not been eliminated.

* Not meaningful


Verizon Communications Inc.


Business - Selected Financial Results
(dollars in millions)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20%
Change		9 Mos. Ended 9/30/219 Mos. Ended 9/30/20%
Change
Operating Revenues
Small and Medium Business$2,937 $2,742 7.1$8,662 $8,147 6.3
Global Enterprise2,552 2,595 (1.7)7,694 7,815 (1.5)
Public Sector and Other1,547 1,639 (5.6)4,807 4,636 3.7
Wholesale653 773 (15.5)2,069 2,314 (10.6)
Total Operating Revenues7,689 7,749 (0.8)23,232 22,912 1.4
Operating Expenses
Cost of services2,647 2,739 (3.4)8,066 7,969 1.2
Cost of wireless equipment1,061 968 9.63,248 2,870 13.2
Selling, general and administrative expense2,077 2,092 (0.7)6,231 6,195 0.6
Depreciation and amortization expense1,018 1,027 (0.9)3,046 3,055 (0.3)
Total Operating Expenses6,803 6,826 (0.3)20,591 20,089 2.5
Operating Income$886 $923 (4.0)$2,641 $2,823 (6.4)
Operating Income Margin11.5 %11.9 %11.4 %12.3 %
Segment EBITDA$1,904 $1,950 (2.4)$5,687 $5,878 (3.2)
Segment EBITDA Margin24.8 %25.2 %24.5 %25.7 %
Footnotes:
The segment financial results and metrics above are adjusted to exclude the effects of special items, as the Company’s chief operating decision maker excludes these items in assessing segment performance.
Certain intersegment transactions with corporate entities have not been eliminated.

Verizon Communications Inc.


Business - Selected Operating Statistics
Unaudited9/30/219/30/20%
Change
Connections (‘000):
Wireless retail postpaid connections26,998 26,223 3.0
Fios video connections72 74 (2.7)
Fios internet connections352 332 6.0
Fios digital connections424 406 4.4
Wireline broadband connections479 488 (1.8)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20%
Change		9 Mos. Ended 9/30/219 Mos. Ended 9/30/20%
Change
Gross Additions (‘000):
Wireless retail postpaid1,314 1,345 (2.3)3,675 3,957 (7.1)
Net Additions Detail (‘000):
Wireless retail postpaid (1)
276 417 (33.8)610 1,172 (48.0)
Wireless retail postpaid phones (1)
162 141 14.9287 456 (37.1)
Fios video— (1)100.0(1)(3)66.7
Fios internet6 5 20.017 6 *
Fios digital 6 4 50.016 3 *
Wireline broadband (1)
(1)(3)66.7(3)(18)83.3
Churn Rate:
Wireless retail postpaid1.29 %1.19 %1.28 %1.20 %
Wireless retail postpaid phones1.04 %0.96 %1.04 %0.96 %
Revenue Statistics (in millions):
Wireless service revenue$3,097 $2,990 3.6$9,247 $8,732 5.9
Fios revenues$287 $263 9.1$844 $785 7.5
Other Operating Statistics:
Wireless retail postpaid upgrade rate3.2 %3.3 %
Total wireless internet postpaid base (2)
34.7 %34.3 %
Footnotes:

(1) Connection net additions include certain adjustments.
(2) Statistics presented as of end of period.
Certain intersegment transactions with corporate entities have not been eliminated.
*Not meaningful


Verizon Communications Inc.


Supplemental Information - Total Wireless Operating and Financial Statistics

The following supplemental schedule contains certain financial and operating metrics which reflect an aggregation of our Consumer and Business segments’ wireless results.
Unaudited9/30/219/30/20% Change
Connections (‘000)
Retail postpaid117,914 116,249 1.4
Retail prepaid4,072 4,075 (0.1)
Total retail121,986 120,324 1.4
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20%
Change		9 Mos. Ended 9/30/219 Mos. Ended 9/30/20%
Change
Net Additions Detail (‘000) (1)
Retail postpaid phone429 283 51.6526 388 35.6
Retail postpaid699 553 26.41,057 855 23.6
Retail prepaid(4)77 *33 5 *
Total retail695 630 10.31,090 860 26.7
Account Statistics
Retail postpaid accounts (‘000) (2)
35,285 35,279 *
Retail postpaid connections per account (2)
3.34 3.30 1.2
Retail postpaid ARPA (3)
$143.87 $139.24 3.3$142.61 $138.01 3.3
Churn Detail
Retail postpaid phone0.74 %0.69 %0.76 %0.70 %
Retail postpaid0.94 %0.89 %0.97 %0.92 %
Retail1.05 %1.01 %1.08 %1.05 %
Retail Postpaid Connection Statistics
Total internet postpaid base (2)
20.4 %20.0 %
Upgrade rate4.3 %4.0 %
Revenue Statistics (in millions) (4)
Wireless service$17,079 $16,432 3.9$50,707 $48,737 4.0
Wireless equipment5,350 4,112 30.115,837 11,996 32.0
Wireless other1,929 2,096 (8.0)6,015 6,214 (3.2)
Total Wireless$24,358 $22,640 7.6$72,559 $66,947 8.4
Footnotes:

(1) Connection net additions include certain adjustments.
(2) Statistics presented as of end of period.
(3) Wireless retail postpaid ARPA - average service revenue per account from retail postpaid accounts.
(4) Intersegment transactions between Consumer or Business segment with corporate entities have not been eliminated.

Verizon Communications Inc.


Non-GAAP Reconciliations - Consolidated Verizon
Consolidated Operating Revenues Excluding Divested Media Business
(dollars in millions)
 3 Mos. Ended3 Mos. Ended
Unaudited9/30/219/30/20
Consolidated Operating Revenues$32,915 $31,543 
Less Operating revenues from divested Media business1,348 1,625 
Consolidated Operating Revenues Excluding Divested Media Business $31,567 $29,918 
Year over year change %5.5 %


Consolidated EBITDA and Consolidated Adjusted EBITDA
(dollars in millions)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 6/30/213 Mos. Ended 3/31/213 Mos. Ended 12/31/203 Mos. Ended 9/30/203 Mos. Ended 6/30/203 Mos. Ended 3/31/20
Consolidated Net Income$6,554 $5,949 $5,378 $4,718 $4,504 $4,839 $4,287 
  Add/(subtract):
Provision for income taxes1,820 1,875 1,700 1,535 1,347 1,348 1,389 
Interest expense (1)
801 844 1,101 1,080 1,044 1,089 1,034 
Depreciation and amortization expense3,961 4,020 4,174 4,197 4,192 4,181 4,150 
Consolidated EBITDA$13,136 $12,688 $12,353 $11,530 $11,087 $11,457 $10,860 
  Add/(subtract):
Other (income) expense, net (2)
$(269)$(502)$(401)$(164)$774 $72 $(143)
Equity in losses (earnings) of unconsolidated businesses(1)(1)(8)11 9 13 12 
Severance charges103 — — 221 — — — 
Loss on spectrum licenses— — 223 — — — 1,195 
Net (gain) loss from disposition of business(706)— — 126 — — — 
(873)(503)(186)194 783 85 1,064 
Consolidated Adjusted EBITDA$12,263 $12,185 $12,167 $11,724 $11,870 $11,542 $11,924 
(1)    Includes Early debt redemption costs, where applicable.
(2)    Includes Pension and benefits mark-to-market adjustments and Early debt redemption costs, where applicable.     
Net Unsecured Debt and Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio
(dollars in millions)
Unaudited9/30/216/30/2112/31/209/30/20
Debt maturing within one year$7,623 $7,023 $5,889 $5,770 
Long-term debt143,352 144,894 123,173 109,790 
Total Debt150,975 151,917 129,062 115,560 
Less Secured debt9,425 10,315 10,604 10,092 
Unsecured Debt141,550 141,602 118,458 105,468 
Less Cash and cash equivalents(1)
9,936 4,757 22,171 8,983 
Net Unsecured Debt
$131,614 $136,845 $96,287 $96,485 
Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio2.7x2.0x
Unsecured Debt - Quarter over quarter change$(52)
Unsecured Debt - Year over year change$36,082 
Net Unsecured Debt - Quarter over quarter change$(5,231)
Net Unsecured Debt - Year over year change$35,129 
(1)    Includes Cash and cash equivalents held for sale, where applicable.

Verizon Communications Inc.


Adjusted Earnings per Common Share (Adjusted EPS)(1)
(dollars in millions, except per share amounts)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/20
Pre-taxTaxAfter-Tax Pre-taxTaxAfter-Tax 
EPS$1.55 $1.05 
Severance, pension and benefits charges$247 $(63)$184 0.04 $1,092 $(279)$813 0.20 
Net gain from sale of Media(706)(30)(736)(0.18)— — — — 
$(459)$(93)$(552)$(0.13)$1,092 $(279)$813 $0.20 
Adjusted EPS$1.41 $1.25 
Year over year change %12.8 %
Note: Adjusted EPS may not add due to rounding.

Free Cash Flow
(dollars in millions)
Unaudited9 Mos. Ended 9/30/219 Mos. Ended 9/30/20
Net Cash Provided by Operating Activities$31,162 $32,472 
Capital expenditures (including capitalized software)(13,861)(14,168)
Free Cash Flow$17,301 $18,304 

Verizon Communications Inc.
Non-GAAP Reconciliations - Segments
Segment EBITDA and Segment EBITDA Margin
Consumer
(dollars in millions)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/209 Mos. Ended 9/30/219 Mos. Ended 9/30/20
Operating Income$7,590 $7,437 $22,606 $21,783 
Add Depreciation and amortization expense2,918 2,862 8,679 8,531 
Segment EBITDA$10,508 $10,299 $31,285 $30,314 
Year over year change %2.0 %3.2 %
Total operating revenues$23,328 $21,736 $69,603 $64,614 
Operating Income Margin32.5 %34.2 %32.5 %33.7 %
Segment EBITDA Margin45.0 %47.4 %44.9 %46.9 %
Business
(dollars in millions)
Unaudited3 Mos. Ended 9/30/213 Mos. Ended 9/30/209 Mos. Ended 9/30/20219 Mos. Ended 9/30/2020
Operating Income$886 $923 $2,641 $2,823 
Add Depreciation and amortization expense1,018 1,027 3,046 3,055 
Segment EBITDA$1,904 $1,950 $5,687 $5,878 
Year over year change %(2.4)%(3.2)%
Total operating revenues$7,689 $7,749 $23,232 $22,912 
Operating Income Margin11.5 %11.9 %11.4 %12.3 %
Segment EBITDA Margin24.8 %25.2 %24.5 %25.7 %