001-11001
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06-0619596
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(Commission File Number)
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(IRS Employer Identification No.)
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3 High Ridge Park, Stamford, Connecticut
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06905
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(Address of principal executive offices)
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(Zip Code)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 7.01.
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Regulation FD Disclosure
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Item 9.01.
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Financial Statements and Exhibits
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99.1
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Press Release of Frontier released February 21, 2013.
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99.2
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Presentation regarding fourth quarter and year end 2012 results.
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FRONTIER COMMUNICATIONS CORPORATION
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Date: February 21, 2013
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By:/s/ Susana D’Emic
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Susana D’Emic
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Senior Vice President and
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Controller
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Frontier Communications
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3 High Ridge Park
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Stamford, CT 06905
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203.614.5600
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www.frontier.com
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• 2012 full year free cash flow of $975 million
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• 2012 full year operating cash flow margin of 48%, as adjusted | |
• 2012 full year dividend payout ratio of 41%
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• 2012 full year capital expenditures of $748 million in line with guidance
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• 2012 full year average revenue per customer metrics improved versus the prior year |
INVESTOR CONTACT:
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MEDIA CONTACT:
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||
Robert W. Starr
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Brigid Smith
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||
Senior Vice President and Treasurer
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AVP Corporate Communications
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(203) 614-5708
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(203) 614-5042
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robert.starr@FTR.com
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brigid.smith@FTR.com
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Frontier Communications Corporation
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Consolidated Financial Data
|
|||||||||||||||||||||
For the quarter ended
|
For the year ended
|
||||||||||||||||||||
December 31,
|
September 30,
|
December 31,
|
December 31,
|
||||||||||||||||||
(Amounts in thousands, except per share amounts)
|
2012
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||
Income Statement Data
|
|||||||||||||||||||||
Revenue
|
$ | 1,232,553 | $ | 1,252,469 | $ | 1,283,152 | $ | 5,011,853 | $ | 5,243,043 | |||||||||||
Network access expenses
|
108,535 | 102,051 | 120,828 | 441,588 | 518,682 | ||||||||||||||||
Other operating expenses (1)
|
570,711 | 572,348 | 548,595 | 2,234,553 | 2,278,419 | ||||||||||||||||
Depreciation and amortization
|
304,044 | 298,416 | 341,025 | 1,266,807 | 1,403,175 | ||||||||||||||||
Integration costs (2)
|
13,533 | 4,458 | 42,247 | 81,737 | 143,146 | ||||||||||||||||
Total operating expenses
|
996,823 | 977,273 | 1,052,695 | 4,024,685 | 4,343,422 | ||||||||||||||||
Operating income
|
235,730 | 275,196 | 230,457 | 987,168 | 899,621 | ||||||||||||||||
Losses on early extinguishment of debt
|
(19,300 | ) | (245 | ) | - | (90,363 | ) | - | |||||||||||||
Investment and other income (loss), net
|
1,138 | 4,602 | 1,487 | 20,132 | 11,526 | ||||||||||||||||
Interest expense
|
178,881 | 172,188 | 165,162 | 687,985 | 665,196 | ||||||||||||||||
Income before income taxes
|
38,687 | 107,365 | 66,782 | 228,952 | 245,951 | ||||||||||||||||
Income tax expense
|
9,488 | 35,739 | 21,534 | 75,638 | 88,343 | ||||||||||||||||
Net income (2)
|
29,199 | 71,626 | 45,248 | 153,314 | 157,608 | ||||||||||||||||
Less: Income attributable to the noncontrolling interest in a
|
|||||||||||||||||||||
partnership
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4,320 | 4,626 | 3,001 | 16,678 | 7,994 | ||||||||||||||||
Net income attributable to common shareholders of Frontier
|
$ | 24,879 | $ | 67,000 | $ | 42,247 | $ | 136,636 | $ | 149,614 | |||||||||||
Weighted average shares outstanding
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991,316 | 991,295 | 990,276 | 990,537 | 989,852 | ||||||||||||||||
Basic net income per share attributable to
|
|||||||||||||||||||||
common shareholders of Frontier (3)
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$ | 0.02 | $ | 0.07 | $ | 0.04 | $ | 0.14 | $ | 0.15 | |||||||||||
Non-GAAP adjusted net income per share
|
|||||||||||||||||||||
attributable to common shareholders of Frontier (3) (4)
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$ | 0.06 | $ | 0.07 | $ | 0.07 | $ | 0.26 | $ | 0.25 | |||||||||||
Other Financial Data
|
|||||||||||||||||||||
Capital expenditures - Business operations
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$ | 177,300 | $ | 195,034 | $ | 111,792 | $ | 748,407 | $ | 748,361 | |||||||||||
Capital expenditures - Integration activities
|
15,329 | 10,828 | 13,837 | 54,097 | 76,478 | ||||||||||||||||
Operating cash flow, as adjusted (4)
|
574,368 | 581,281 | 616,198 | 2,395,846 | 2,485,567 | ||||||||||||||||
Free cash flow (4)
|
221,984 | 215,256 | 358,762 | 975,267 | 1,121,475 | ||||||||||||||||
Dividends paid
|
99,843 | 99,845 | 186,584 | 399,390 | 746,387 | ||||||||||||||||
Dividend payout ratio (5)
|
45 | % | 46 | % | 52 | % | 41 | % | 67 | % | |||||||||||
(1)
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Includes severance costs of $17.2 million, $6.8 million and $1.1 million for the quarters ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively, and $32.0 million and $15.7 million for the years ended December 31, 2012 and 2011, respectively.
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||||||||||||||||||||
(2)
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Reflects integration costs of $13.5 million ($9.1 million or $0.01 per share after tax), $4.5 million ($2.9 million after tax) and $42.2 million ($26.1 million or $0.03 per share after tax) for the quarters ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively. Reflects integration costs of $81.7 million ($51.8 million or $0.05 per share after tax) and $143.1 million ($88.4 million or $0.09 per share after tax) for the years ended December 31, 2012 and 2011, respectively.
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||||||||||||||||||||
(3)
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Calculated based on weighted average shares outstanding.
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||||||||||||||||||||
(4)
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Reconciliations to the most comparable GAAP measures are presented in Schedules A, B and C at the end of these tables.
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||||||||||||||||||||
(5)
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Represents dividends paid divided by free cash flow, as defined in Schedule A.
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Frontier Communications Corporation
|
|||||||||||||||||||||
Consolidated Financial and Operating Data
|
|||||||||||||||||||||
For the quarter ended
|
For the year ended
|
||||||||||||||||||||
December 31,
|
September 30,
|
December 31,
|
December 31,
|
||||||||||||||||||
(Amounts in thousands, except operating data)
|
2012
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||
Selected Income Statement Data
|
|||||||||||||||||||||
Revenue:
|
|||||||||||||||||||||
Local and long distance services
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$ | 542,538 | $ | 556,353 | $ | 592,860 | $ | 2,230,890 | $ | 2,451,311 | |||||||||||
Data and internet services
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456,422 | 461,212 | 464,873 | 1,823,010 | 1,842,933 | ||||||||||||||||
Other
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92,393 | 94,929 | 78,377 | 381,536 | 329,658 | ||||||||||||||||
Customer revenue
|
1,091,353 | 1,112,494 | 1,136,110 | 4,435,436 | 4,623,902 | ||||||||||||||||
Switched access and subsidy
|
141,200 | 139,975 | 147,042 | 576,417 | 619,141 | ||||||||||||||||
Total revenue
|
$ | 1,232,553 | $ | 1,252,469 | $ | 1,283,152 | $ | 5,011,853 | $ | 5,243,043 | |||||||||||
Other Financial and Operating Data
|
|||||||||||||||||||||
Revenue:
|
|||||||||||||||||||||
Business
|
$ | 574,451 | $ | 581,097 | $ | 591,966 | $ | 2,317,212 | $ | 2,353,375 | |||||||||||
Residential
|
516,902 | 531,397 | 544,144 | 2,118,224 | 2,270,527 | ||||||||||||||||
Customer revenue
|
1,091,353 | 1,112,494 | 1,136,110 | 4,435,436 | 4,623,902 | ||||||||||||||||
Switched access and subsidy
|
141,200 | 139,975 | 147,042 | 576,417 | 619,141 | ||||||||||||||||
Total revenue
|
$ | 1,232,553 | $ | 1,252,469 | $ | 1,283,152 | $ | 5,011,853 | $ | 5,243,043 | |||||||||||
Customers
|
3,173,169 | 3,223,557 | 3,413,666 | 3,173,169 | 3,413,666 | ||||||||||||||||
Average monthly total revenue
|
|||||||||||||||||||||
per customer
|
$ | 128.46 | $ | 128.48 | $ | 123.83 | $ | 127.32 | $ | 121.88 | |||||||||||
Average monthly customer revenue
|
|||||||||||||||||||||
per customer
|
$ | 113.74 | $ | 114.12 | $ | 109.64 | $ | 112.68 | $ | 107.50 | |||||||||||
Business customer metrics:
|
|||||||||||||||||||||
Customers
|
286,106 | 291,394 | 309,900 | 286,106 | 309,900 | ||||||||||||||||
Revenue
|
$ | 574,451 | $ | 581,097 | $ | 591,966 | $ | 2,317,212 | $ | 2,353,375 | |||||||||||
Average monthly business revenue per customer
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$ | 663.15 | $ | 659.01 | $ | 627.14 | $ | 650.63 | $ | 601.14 | |||||||||||
Residential customer metrics:
|
|||||||||||||||||||||
Customers
|
2,887,063 | 2,932,163 | 3,103,766 | 2,887,063 | 3,103,766 | ||||||||||||||||
Revenue
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$ | 516,902 | $ | 531,397 | $ | 544,144 | $ | 2,118,224 | $ | 2,270,527 | |||||||||||
Average monthly residential revenue per customer (1)
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$ | 58.00 | $ | 58.72 | $ | 56.95 | $ | 58.03 | $ | 57.40 | |||||||||||
Customer monthly churn
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1.62 | % | 1.64 | % | 1.54 | % | 1.62 | % | 1.69 | % | |||||||||||
Employees
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14,659 | 15,250 | 15,388 | 14,659 | 15,388 | ||||||||||||||||
Broadband subscribers
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1,787,561 | 1,782,278 | 1,764,160 | 1,787,561 | 1,764,160 | ||||||||||||||||
Video subscribers (2)
|
346,627 | 328,538 | 303,046 | 346,627 | 303,046 | ||||||||||||||||
Switched access minutes of use (in millions)
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4,523 | 4,481 | 4,482 | 18,292 | 18,894 | ||||||||||||||||
(1)
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Calculation excludes the Mohave Cellular Limited Partnership.
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||||||||||||||||||||
(2)
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Video subscribers excludes the loss of 203,100 DirecTV subscribers in the third quarter of 2012 as Frontier no longer provides DirecTV as part of its bundled packages. Video subscribers excludes 224,500 DirecTV subscribers as of December 31, 2011.
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Frontier Communications Corporation
|
||||||||
Condensed Consolidated Balance Sheet Data
|
||||||||
(Amounts in thousands)
|
||||||||
December 31, 2012
|
December 31, 2011
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 1,326,532 | $ | 326,094 | ||||
Accounts receivable, net
|
533,704 | 585,157 | ||||||
Restricted cash
|
15,408 | - | ||||||
Other current assets
|
211,559 | 327,779 | ||||||
Total current assets
|
2,087,203 | 1,239,030 | ||||||
Restricted cash
|
27,252 | 144,680 | ||||||
Property, plant and equipment, net
|
7,504,896 | 7,547,523 | ||||||
Other assets - principally goodwill
|
8,114,280 | 8,517,086 | ||||||
Total assets
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$ | 17,733,631 | $ | 17,448,319 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Long-term debt due within one year
|
$ | 560,550 | $ | 94,016 | ||||
Accounts payable and other current liabilities
|
992,970 | 1,058,200 | ||||||
Total current liabilities
|
1,553,520 | 1,152,216 | ||||||
Deferred income taxes and other liabilities
|
3,678,893 | 3,602,577 | ||||||
Long-term debt
|
8,381,947 | 8,224,392 | ||||||
Equity
|
4,119,271 | 4,469,134 | ||||||
Total liabilities and equity
|
$ | 17,733,631 | $ | 17,448,319 | ||||
Frontier Communications Corporation
|
||||||||
Consolidated Cash Flow Data
|
||||||||
(Amounts in thousands)
|
||||||||
For the year ended December 31,
|
||||||||
2012
|
2011
|
|||||||
Cash flows provided by (used in) operating activities:
|
||||||||
Net income
|
$ | 153,314 | $ | 157,608 | ||||
Adjustments to reconcile net income to net cash provided
|
||||||||
by operating activities:
|
||||||||
Depreciation and amortization expense
|
1,266,807 | 1,403,175 | ||||||
Stock based compensation expense
|
16,775 | 14,209 | ||||||
Pension/OPEB costs
|
28,087 | 23,897 | ||||||
Losses on early extinguishment of debt
|
90,363 | - | ||||||
Other non-cash adjustments
|
10,319 | (28,036 | ) | |||||
Deferred income taxes
|
80,501 | 87,411 | ||||||
Change in accounts receivable
|
43,813 | (72,600 | ) | |||||
Change in accounts payable and other liabilities
|
(148,906 | ) | (84,689 | ) | ||||
Change in other current assets
|
11,400 | 71,706 | ||||||
Net cash provided by operating activities
|
1,552,473 | 1,572,681 | ||||||
Cash flows provided from (used by) investing activities:
|
||||||||
Capital expenditures - Business operations
|
(748,407 | ) | (748,361 | ) | ||||
Capital expenditures - Integration activities
|
(54,097 | ) | (76,478 | ) | ||||
Network expansion funded by Connect America Fund
|
(4,830 | ) | - | |||||
Grant funds received for network expansion from Connect
|
||||||||
America Fund
|
65,981 | - | ||||||
Cash transferred from escrow
|
102,020 | 43,012 | ||||||
Other assets purchased and distributions received, net
|
4,394 | 19,155 | ||||||
Net cash used by investing activities
|
(634,939 | ) | (762,672 | ) | ||||
Cash flows provided from (used by) financing activities:
|
||||||||
Long-term debt borrowings
|
1,360,625 | 575,000 | ||||||
Financing costs paid
|
(27,852 | ) | (5,444 | ) | ||||
Long-term debt payments
|
(756,953 | ) | (552,394 | ) | ||||
Premium paid to retire debt
|
(72,290 | ) | - | |||||
Dividends paid
|
(399,390 | ) | (746,387 | ) | ||||
Repayment of customer advances for construction,
|
||||||||
distributions to noncontrolling interests and other
|
(21,236 | ) | (5,953 | ) | ||||
Net cash provided from (used by) financing activities
|
82,904 | (735,178 | ) | |||||
Increase (decrease) in cash and cash equivalents
|
1,000,438 | 74,831 | ||||||
Cash and cash equivalents at January 1,
|
326,094 | 251,263 | ||||||
Cash and cash equivalents at December 31,
|
$ | 1,326,532 | $ | 326,094 | ||||
Cash paid (received) during the period for:
|
||||||||
Interest
|
$ | 636,485 | $ | 653,500 | ||||
Income taxes (refunds)
|
$ | 4,715 | $ | (33,072 | ) | |||
Non-cash investing and financing activities:
|
||||||||
Capital lease obligations
|
$ | 26,596 | $ | - | ||||
Financing obligation for contribution of real property
|
||||||||
to pension plan
|
$ | - | $ | 58,100 | ||||
Reduction of pension obligation
|
$ | - | $ | (58,100 | ) | |||
Increase (decrease) in capital expenditures due to
|
||||||||
changes in accounts payable
|
$ | 9,802 | $ | 1,338 |
Schedule A
|
|||||||||||||||||||||
Frontier Communications Corporation
|
|||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures
|
|||||||||||||||||||||
For the quarter ended
|
For the year ended
|
||||||||||||||||||||
December 31,
|
September 30,
|
December 31,
|
December 31,
|
||||||||||||||||||
(Amounts in thousands)
|
2012
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||
Net Income to Free Cash Flow;
|
|||||||||||||||||||||
Net Cash Provided by Operating Activities
|
|||||||||||||||||||||
Net income
|
$ | 29,199 | $ | 71,626 | $ | 45,248 | $ | 153,314 | $ | 157,608 | |||||||||||
Add back:
|
|||||||||||||||||||||
Depreciation and amortization
|
304,044 | 298,416 | 341,025 | 1,266,807 | 1,403,175 | ||||||||||||||||
Income tax expense
|
9,488 | 35,739 | 21,534 | 75,638 | 88,343 | ||||||||||||||||
Integration costs
|
13,533 | 4,458 | 42,247 | 81,737 | 143,146 | ||||||||||||||||
Pension/OPEB costs (non-cash) (1)
|
3,867 | (3,633 | ) | 1,382 | 28,087 | 23,897 | |||||||||||||||
Severance costs (2)
|
17,194 | 6,844 | 1,087 | 32,047 | 15,728 | ||||||||||||||||
Stock based compensation
|
3,825 | 5,175 | 3,480 | 16,775 | 14,209 | ||||||||||||||||
Subtract:
|
|||||||||||||||||||||
Cash paid (refunded) for income taxes
|
622 | 4,301 | (16,825 | ) | 4,715 | (33,072 | ) | ||||||||||||||
Losses on early extinguishment of debt
|
(19,300 | ) | (245 | ) | - | (90,363 | ) | - | |||||||||||||
Other income (loss), net
|
544 | 4,279 | 2,274 | 16,379 | 9,342 | ||||||||||||||||
Capital expenditures - Business operations (3)
|
177,300 | 195,034 | 111,792 | 748,407 | 748,361 | ||||||||||||||||
Free cash flow (2)
|
221,984 | 215,256 | 358,762 | 975,267 | 1,121,475 | ||||||||||||||||
Add back:
|
|||||||||||||||||||||
Deferred income taxes
|
20,707 | 32,636 | 67,192 | 80,501 | 87,411 | ||||||||||||||||
Non-cash (gains)/losses, net
|
10,971 | 196 | (19,854 | ) | 55,181 | 10,070 | |||||||||||||||
Other income (loss), net
|
544 | 4,279 | 2,274 | 16,379 | 9,342 | ||||||||||||||||
Cash paid (refunded) for income taxes
|
622 | 4,301 | (16,825 | ) | 4,715 | (33,072 | ) | ||||||||||||||
Capital expenditures - Business operations (3)
|
177,300 | 195,034 | 111,792 | 748,407 | 748,361 | ||||||||||||||||
Subtract:
|
|||||||||||||||||||||
Changes in current assets and liabilities
|
(7,967 | ) | 627 | 133,584 | 93,693 | 85,583 | |||||||||||||||
Income tax expense
|
9,488 | 35,739 | 21,534 | 75,638 | 88,343 | ||||||||||||||||
Integration costs
|
13,533 | 4,458 | 42,247 | 81,737 | 143,146 | ||||||||||||||||
Pension/OPEB costs (non-cash) (1)
|
3,867 | (3,633 | ) | 1,382 | 28,087 | 23,897 | |||||||||||||||
Severance costs (2)
|
17,194 | 6,844 | 1,087 | 32,047 | 15,728 | ||||||||||||||||
Stock based compensation
|
3,825 | 5,175 | 3,480 | 16,775 | 14,209 | ||||||||||||||||
Net cash provided by operating activities
|
$ | 392,188 | $ | 402,492 | $ | 300,027 | $ | 1,552,473 | $ | 1,572,681 | |||||||||||
(1)
|
Reflects pension and other postretirement benefit (OPEB) expense, net of capitalized amounts, of $16.8 million, $17.1 million and $2.2 million for the quarters ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively, less cash pension contributions and certain OPEB costs/payments of $13.0 million, $20.8 million and $0.8 million for the quarters ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively. Reflects pension and OPEB expense, net of capitalized amounts, of $66.3 million and $48.1 million for the years ended December 31, 2012 and 2011, respectively, less cash pension contributions and certain OPEB costs/payments of $38.2 million and $24.2 million for the years ended December 31, 2012 and 2011, respectively.
|
||||||||||||||||||||
(2)
|
The definition of free cash flow has been revised as of January 1, 2012 to add back severance costs, with all prior periods conformed to the current calculation.
|
||||||||||||||||||||
(3)
|
Excludes capital expenditures for integration activities.
|
||||||||||||||||||||
Schedule B
|
|||||||||||||||||||||||||||||||||||||||||
Frontier Communications Corporation
|
|||||||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures
|
|||||||||||||||||||||||||||||||||||||||||
For the quarter ended December 31, 2012
|
For the quarter ended December 31, 2011
|
||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands)
|
|||||||||||||||||||||||||||||||||||||||||
Non-cash
|
Non-cash
|
||||||||||||||||||||||||||||||||||||||||
Operating Cash Flow and
|
As
|
Integration
|
Pension/OPEB
|
Severance
|
As
|
As
|
Integration
|
Pension/OPEB
|
Severance
|
As
|
|||||||||||||||||||||||||||||||
Operating Cash Flow Margin
|
Reported
|
Costs
|
Costs (1)
|
Costs
|
Adjusted
|
Reported
|
Costs
|
Costs (1)
|
Costs
|
Adjusted
|
|||||||||||||||||||||||||||||||
Operating Income
|
$ | 235,730 | $ | 13,533 | $ | 3,867 | $ | 17,194 | $ | 270,324 | $ | 230,457 | $ | 42,247 | $ | 1,382 | $ | 1,087 | $ | 275,173 | |||||||||||||||||||||
Add back:
|
|||||||||||||||||||||||||||||||||||||||||
Depreciation and
|
|||||||||||||||||||||||||||||||||||||||||
amortization
|
304,044 | - | - | - | 304,044 | 341,025 | - | - | - | 341,025 | |||||||||||||||||||||||||||||||
Operating cash flow
|
$ | 539,774 | $ | 13,533 | $ | 3,867 | $ | 17,194 | $ | 574,368 | $ | 571,482 | $ | 42,247 | $ | 1,382 | $ | 1,087 | $ | 616,198 | |||||||||||||||||||||
Revenue
|
$ | 1,232,553 | $ | 1,232,553 | $ | 1,283,152 | $ | 1,283,152 | |||||||||||||||||||||||||||||||||
Operating income margin
|
|||||||||||||||||||||||||||||||||||||||||
(Operating income divided
|
|||||||||||||||||||||||||||||||||||||||||
by revenue)
|
19.1 | % | 21.9 | % | 18.0 | % | 21.4 | % | |||||||||||||||||||||||||||||||||
Operating cash flow margin
|
|||||||||||||||||||||||||||||||||||||||||
(Operating cash flow divided
|
|||||||||||||||||||||||||||||||||||||||||
by revenue)
|
43.8 | % | 46.6 | % | 44.5 | % | 48.0 | % | |||||||||||||||||||||||||||||||||
For the quarter ended September 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||
Non-cash
|
|||||||||||||||||||||||||||||||||||||||||
Operating Cash Flow and
|
As
|
Integration
|
Pension/OPEB
|
Severance
|
As
|
||||||||||||||||||||||||||||||||||||
Operating Cash Flow Margin
|
Reported
|
Costs
|
Costs (1)
|
Costs
|
Adjusted
|
||||||||||||||||||||||||||||||||||||
Operating Income
|
$ | 275,196 | $ | 4,458 | $ | (3,633 | ) | $ | 6,844 | $ | 282,865 | ||||||||||||||||||||||||||||||
Add back:
|
|||||||||||||||||||||||||||||||||||||||||
Depreciation and
|
|||||||||||||||||||||||||||||||||||||||||
amortization
|
298,416 | - | - | - | 298,416 | ||||||||||||||||||||||||||||||||||||
Operating cash flow
|
$ | 573,612 | $ | 4,458 | $ | (3,633 | ) | $ | 6,844 | $ | 581,281 | ||||||||||||||||||||||||||||||
Revenue
|
$ | 1,252,469 | $ | 1,252,469 | |||||||||||||||||||||||||||||||||||||
Operating income margin
|
|||||||||||||||||||||||||||||||||||||||||
(Operating income divided
|
|||||||||||||||||||||||||||||||||||||||||
by revenue)
|
22.0 | % | 22.6 | % | |||||||||||||||||||||||||||||||||||||
Operating cash flow margin
|
|||||||||||||||||||||||||||||||||||||||||
(Operating cash flow divided
|
|||||||||||||||||||||||||||||||||||||||||
by revenue)
|
45.8 | % | 46.4 | % | |||||||||||||||||||||||||||||||||||||
(1)
|
Reflects pension and other postretirement benefit (OPEB) expense, net of capitalized amounts, of $16.8 million, $17.1 million and $2.2 million for the quarters ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively, less cash pension contributions and certain OPEB costs/payments of $13.0 million, $20.8 million and $0.8 million for the quarters ended December 31, 2012, September 30, 2012 and December 31, 2011, respectively.
|
||||||||||||||||||||||||||||||||||||||||
Schedule B
|
|||||||||||||||||||||||||||||||||||||||||
(continued)
|
|||||||||||||||||||||||||||||||||||||||||
Frontier Communications Corporation
|
|||||||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures
|
|||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2012
|
For the year ended December 31, 2011
|
||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands)
|
|||||||||||||||||||||||||||||||||||||||||
Non-cash
|
Non-cash
|
||||||||||||||||||||||||||||||||||||||||
Operating Cash Flow and
|
As
|
Integration
|
Pension/OPEB
|
Severance
|
As
|
As
|
Integration
|
Pension/OPEB
|
Severance
|
As
|
|||||||||||||||||||||||||||||||
Operating Cash Flow Margin
|
Reported
|
Costs
|
Costs (1)
|
Costs
|
Adjusted
|
Reported
|
Costs
|
Costs (1)
|
Costs
|
Adjusted
|
|||||||||||||||||||||||||||||||
Operating Income
|
$ | 987,168 | $ | 81,737 | $ | 28,087 | $ | 32,047 | $ | 1,129,039 | $ | 899,621 | $ | 143,146 | $ | 23,897 | $ | 15,728 | $ | 1,082,392 | |||||||||||||||||||||
Add back:
|
|||||||||||||||||||||||||||||||||||||||||
Depreciation and
|
|||||||||||||||||||||||||||||||||||||||||
amortization
|
1,266,807 | - | - | - | 1,266,807 | 1,403,175 | - | - | - | 1,403,175 | |||||||||||||||||||||||||||||||
Operating cash flow
|
$ | 2,253,975 | $ | 81,737 | $ | 28,087 | $ | 32,047 | $ | 2,395,846 | $ | 2,302,796 | $ | 143,146 | $ | 23,897 | $ | 15,728 | $ | 2,485,567 | |||||||||||||||||||||
Revenue
|
$ | 5,011,853 | $ | 5,011,853 | $ | 5,243,043 | $ | 5,243,043 | |||||||||||||||||||||||||||||||||
Operating income margin
|
|||||||||||||||||||||||||||||||||||||||||
(Operating income divided
|
|||||||||||||||||||||||||||||||||||||||||
by revenue)
|
19.7 | % | 22.5 | % | 17.2 | % | 20.6 | % | |||||||||||||||||||||||||||||||||
Operating cash flow margin
|
|||||||||||||||||||||||||||||||||||||||||
(Operating cash flow divided
|
|||||||||||||||||||||||||||||||||||||||||
by revenue)
|
45.0 | % | 47.8 | % | 43.9 | % | 47.4 | % | |||||||||||||||||||||||||||||||||
(1)
|
Reflects pension and other postretirement benefit (OPEB) expense, net of capitalized amounts, of $66.3 million and $48.1 million for the years ended December 31, 2012 and 2011, respectively, less cash pension contributions and certain OPEB costs/payments of $38.2 million and $24.2 million for the years ended December 31, 2012 and 2011, respectively.
|
||||||||||||||||||||||||||||||||||||||||
Schedule C
|
|||||||||||||||||||||||||
Frontier Communications Corporation
|
|||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures
|
|||||||||||||||||||||||||
(Amounts in thousands, except
|
|||||||||||||||||||||||||
per share amounts)
|
For the quarter ended
|
||||||||||||||||||||||||
December 31, 2012
|
September 30, 2012
|
December 31, 2011
|
|||||||||||||||||||||||
Net income attributable to common
|
Earnings
|
Earnings
|
Earnings
|
||||||||||||||||||||||
shareholders of Frontier
|
Net Income
|
Per Share
|
Net Income
|
Per Share
|
Net Income
|
Per Share
|
|||||||||||||||||||
GAAP, as reported
|
$ | 24,879 | $ | 0.02 | $ | 67,000 | $ | 0.07 | $ | 42,247 | $ | 0.04 | |||||||||||||
Losses on early extinguishment of debt
|
12,120 | 0.01 | 154 | - | - | - | |||||||||||||||||||
Integration costs
|
9,067 | 0.01 | 2,916 | - | 26,088 | 0.03 | |||||||||||||||||||
Severance costs
|
11,520 | 0.01 | 4,476 | - | 671 | - | |||||||||||||||||||
Discrete tax items (1)
|
361 | - | (5,667 | ) | (0.01 | ) | (2,397 | ) | - | ||||||||||||||||
Non-GAAP, as adjusted (2)
|
$ | 57,947 | $ | 0.06 | $ | 68,879 | $ | 0.07 | $ | 66,609 | $ | 0.07 | |||||||||||||
For the year ended
|
|||||||||||||||||||||||||
December 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||||
Net income attributable to common
|
Earnings
|
Earnings
|
|||||||||||||||||||||||
shareholders of Frontier
|
Net Income
|
Per Share
|
Net Income
|
Per Share
|
|||||||||||||||||||||
GAAP, as reported
|
$ | 136,636 | $ | 0.14 | $ | 149,614 | $ | 0.15 | |||||||||||||||||
Losses on early extinguishment of debt
|
56,748 | 0.06 | - | - | |||||||||||||||||||||
Integration costs
|
51,789 | 0.05 | 88,393 | 0.09 | |||||||||||||||||||||
Severance costs
|
20,965 | 0.02 | 9,712 | 0.01 | |||||||||||||||||||||
Gain on investment in Adelphia
|
(6,191 | ) | (0.01 | ) | - | - | |||||||||||||||||||
Discrete tax items (1)
|
(5,306 | ) | (0.01 | ) | (4,546 | ) | - | ||||||||||||||||||
Non-GAAP, as adjusted (2)
|
$ | 254,641 | $ | 0.26 | $ | 243,173 | $ | 0.25 | |||||||||||||||||
(1) | Includes the reversal of uncertain tax positions and changes in certain deferred tax balances. | ||||||||||||||||||||||||
(2)
|
Non-GAAP, as adjusted may not sum due to rounding.
|
||||||||||||||||||||||||
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