|
|
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02 |
Results of Operations and Financial Condition
|
Item 9.01 |
Financial Statements and Exhibits
|
(d)
|
Exhibits
|
Exhibit
Number
|
Description
|
|
Fourth Quarter 2020 Supplemental Financial Results
|
FRONTIER COMMUNICATIONS CORPORATION
|
||
Date: March 3, 2021
|
By:
|
/s/ Mark D. Nielsen
|
Mark D. Nielsen
|
||
Executive Vice President, Chief Legal Officer and Chief Transaction Officer
|
For the three months ended
|
For the twelve months ended
|
|||||||||||||||||||
($ in millions and shares in thousands, except per share amounts)
|
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
|||||||||||||||
Statement of Operations Data
|
||||||||||||||||||||
Revenue
|
$
|
1,695
|
$
|
1,726
|
$
|
1,942
|
$
|
7,155
|
$
|
8,107
|
||||||||||
Operating expenses:
|
||||||||||||||||||||
Network access expenses
|
208
|
226
|
284
|
975
|
1,247
|
|||||||||||||||
Network related expenses
|
421
|
431
|
445
|
1,726
|
1,810
|
|||||||||||||||
Selling, general and administrative expenses
|
393
|
404
|
458
|
1,648
|
1,804
|
|||||||||||||||
Depreciation and amortization
|
394
|
392
|
420
|
1,598
|
1,780
|
|||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
5,725
|
|||||||||||||||
Loss on disposal of Northwest Operations
|
2
|
-
|
32
|
162
|
446
|
|||||||||||||||
Restructuring costs and other charges
|
-
|
3
|
82
|
87
|
168
|
|||||||||||||||
Total operating expenses
|
1,418
|
1,456
|
1,721
|
6,196
|
12,980
|
|||||||||||||||
Operating income (loss)
|
277
|
270
|
221
|
959
|
(4,873
|
)
|
||||||||||||||
-
|
||||||||||||||||||||
Investment and other loss, net
|
(14
|
)
|
(14
|
)
|
(9
|
)
|
(43
|
)
|
(37
|
)
|
||||||||||
Pension settlement costs
|
-
|
-
|
(57
|
)
|
(159
|
)
|
(57
|
)
|
||||||||||||
Loss on early extinguishment of debt
|
(72
|
)
|
-
|
-
|
(72
|
)
|
(20
|
)
|
||||||||||||
Reorganization items, net
|
(136
|
)
|
(131
|
)
|
-
|
(409
|
)
|
-
|
||||||||||||
Interest expense (contractual interest for the three and twelve months ended December 31, 2020 were
$340 million and $1,456 million, respectively)
|
(98
|
)
|
(121
|
)
|
(391
|
)
|
(762
|
)
|
(1,535
|
)
|
||||||||||
Income (Loss) before income taxes
|
(43
|
)
|
4
|
(236
|
)
|
(486
|
)
|
(6,522
|
)
|
|||||||||||
Income tax expense (benefit)
|
7
|
(11
|
)
|
(74
|
)
|
(84
|
)
|
(611
|
)
|
|||||||||||
Net income (loss)
|
(50
|
)
|
15
|
(162
|
)
|
(402
|
)
|
(5,911
|
)
|
|||||||||||
Weighted average shares outstanding - basic
|
104,489
|
104,526
|
104,165
|
104,467
|
104,065
|
|||||||||||||||
Weighted average shares outstanding - diluted
|
104,489
|
104,866
|
104,165
|
104,467
|
104,065
|
|||||||||||||||
Basic and diluted net earnings (loss) per common share
|
$
|
(0.48
|
)
|
$
|
0.14
|
$
|
(1.55
|
)
|
$
|
(3.85
|
)
|
$
|
(56.80
|
)
|
||||||
Other Financial Data:
|
||||||||||||||||||||
Capital expenditures
|
$
|
356
|
$
|
314
|
$
|
328
|
$
|
1,181
|
$
|
1,226
|
For the three months ended
|
For the twelve months ended
|
|||||||||||||||||||
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
||||||||||||||||
($ in millions)
|
||||||||||||||||||||
Selected Statement of Operations Data
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Data and Internet services
|
$
|
834
|
$
|
838
|
$
|
822
|
$
|
3,376
|
$
|
3,446
|
||||||||||
Voice services
|
490
|
500
|
555
|
2,028
|
2,315
|
|||||||||||||||
Video services
|
181
|
186
|
222
|
776
|
959
|
|||||||||||||||
Other
|
101
|
103
|
108
|
417
|
438
|
|||||||||||||||
Revenue from contracts with customers
|
1,606
|
1,627
|
1,707
|
6,597
|
7,158
|
|||||||||||||||
Subsidy and other revenue
|
89
|
99
|
85
|
366
|
344
|
|||||||||||||||
Total revenue
|
$
|
1,695
|
$
|
1,726
|
$
|
1,792
|
$
|
6,963
|
$
|
7,502
|
||||||||||
Other Financial Data
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Consumer
|
$
|
857
|
$
|
859
|
$
|
923
|
$
|
3,484
|
$
|
3,831
|
||||||||||
Commercial
|
749
|
768
|
784
|
3,113
|
3,327
|
|||||||||||||||
Revenue from contracts with customers
|
1,606
|
1,627
|
1,707
|
6,597
|
7,158
|
|||||||||||||||
Subsidy and other revenue
|
89
|
99
|
85
|
366
|
344
|
|||||||||||||||
Total revenue
|
$
|
1,695
|
$
|
1,726
|
$
|
1,792
|
$
|
6,963
|
$
|
7,502
|
As of or for the three months ended
|
As of or for the twelve months ended
|
|||||||||||||||||||
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
||||||||||||||||
Consumer customer metrics
|
||||||||||||||||||||
Customers (in thousands)
|
3,264
|
3,305
|
3,412
|
3,264
|
3,412
|
|||||||||||||||
Net customer additions (losses)
|
(42
|
)
|
(36
|
)
|
(58
|
)
|
(148
|
)
|
(290
|
)
|
||||||||||
Average monthly consumer revenue per customer
|
$
|
87.00
|
$
|
86.19
|
$
|
89.45
|
$
|
86.97
|
$
|
89.82
|
||||||||||
Customer monthly churn
|
1.67
|
%
|
1.81
|
%
|
1.95
|
%
|
1.74
|
%
|
2.11
|
%
|
||||||||||
Broadband subscriber metrics
|
||||||||||||||||||||
Broadband subscribers (in thousands)
|
3,069
|
3,119
|
3,211
|
3,069
|
3,211
|
|||||||||||||||
Net subscriber additions (losses)
|
(49
|
)
|
(23
|
)
|
(38
|
)
|
(142
|
)
|
(206
|
)
|
||||||||||
Video (excl. DISH) subscriber metrics
|
||||||||||||||||||||
Video subscribers (in thousands)
|
485
|
518
|
631
|
485
|
631
|
|||||||||||||||
Net subscriber additions (losses)
|
(33
|
)
|
(42
|
)
|
(36
|
)
|
(146
|
)
|
(169
|
)
|
||||||||||
DISH subscriber metrics
|
||||||||||||||||||||
DISH subscribers (in thousands)
|
134
|
139
|
156
|
134
|
156
|
|||||||||||||||
Net subscriber additions (losses)
|
(5
|
)
|
(5
|
)
|
(7
|
)
|
(22
|
)
|
(29
|
)
|
||||||||||
Employees
|
16,200
|
16,302
|
17,367
|
16,200
|
17,367
|
($ in millions)
|
December 31, 2020
|
December 31, 2019
|
||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,829
|
$
|
760
|
||||
Accounts receivable, net
|
553
|
629
|
||||||
Assets held for sale
|
-
|
1,401
|
||||||
Other current assets
|
272
|
247
|
||||||
Total current assets
|
2,654
|
3,037
|
||||||
Property, plant and equipment, net
|
12,931
|
12,963
|
||||||
Other assets
|
1,210
|
1,488
|
||||||
Total assets
|
$
|
16,795
|
$
|
17,488
|
||||
LIABILITIES AND EQUITY (DEFICIT)
|
||||||||
Current liabilities:
|
||||||||
Long-term debt due within one year
|
$
|
5,781
|
$
|
994
|
||||
Liabilities held for sale
|
-
|
123
|
||||||
Accounts payable and other current liabilities
|
1,359
|
1,687
|
||||||
Total current liabilities
|
7,140
|
2,804
|
||||||
Deferred income taxes and other liabilities
|
2,990
|
2,770
|
||||||
Liabilities subject to compromise
|
11,565
|
-
|
||||||
Long-term debt
|
-
|
16,308
|
||||||
Equity (deficit)
|
(4,900
|
)
|
(4,394
|
)
|
||||
Total liabilities and equity (deficit)
|
$
|
16,795
|
$
|
17,488
|
For the twelve months ended
|
||||||||
($ in millions)
|
December 31, 2020
|
December 31, 2019
|
||||||
Cash flows provided from (used by) operating activities:
|
||||||||
Net loss
|
$
|
(402
|
)
|
$
|
(5,911
|
)
|
||
Adjustments to reconcile net loss to net cash provided from (used by) operating activities:
|
||||||||
Depreciation and amortization
|
1,598
|
1,780
|
||||||
Loss on extinguishment of debt
|
72
|
20
|
||||||
Pension settlement costs
|
159
|
57
|
||||||
Pension/OPEB special termination benefit enhancements
|
-
|
44
|
||||||
Stock-based compensation expense
|
3
|
15
|
||||||
Amortization of deferred financing costs
|
15
|
30
|
||||||
Non-cash reorganization items, net
|
93
|
-
|
||||||
Other adjustments
|
6
|
-
|
||||||
Deferred income taxes
|
(91
|
)
|
(619
|
)
|
||||
Goodwill impairment
|
-
|
5,725
|
||||||
Loss on disposal of Northwest Operations
|
162
|
446
|
||||||
Change in accounts receivable
|
73
|
48
|
||||||
Change in accounts payable and other liabilities
|
342
|
(122
|
)
|
|||||
Change in prepaid expenses, income taxes, and other assets
|
(41
|
)
|
(5
|
)
|
||||
Net cash provided from operating activities
|
1,989
|
1,508
|
||||||
Cash flows provided from (used by) investing activities:
|
||||||||
Capital expenditures
|
(1,181
|
)
|
(1,226
|
)
|
||||
Proceeds from sale of Northwest Operations
|
1,131
|
-
|
||||||
Proceeds on sale of assets
|
27
|
88
|
||||||
Other
|
4
|
4
|
||||||
Net cash used by investing activities
|
(19
|
)
|
(1,134
|
)
|
||||
Cash flows provided from (used by) financing activities:
|
||||||||
Long-term debt payments
|
(4,948
|
)
|
(2,008
|
)
|
||||
Proceeds from long-term debt borrowings
|
4,950
|
1,650
|
||||||
Proceeds from revolving debt
|
-
|
949
|
||||||
Repayment of revolving debt
|
(749
|
)
|
(475
|
)
|
||||
Financing costs paid
|
(121
|
)
|
(44
|
)
|
||||
Finance lease obligation payments
|
(23
|
)
|
(35
|
)
|
||||
Other
|
(2
|
)
|
(5
|
)
|
||||
Net cash provided from (used by) financing activities
|
(893
|
)
|
32
|
|||||
Increase (Decrease) in cash, cash equivalents, and restricted cash
|
1,077
|
406
|
||||||
Cash, cash equivalents, and restricted cash at January 1,
|
810
|
404
|
||||||
Cash, cash equivalents, and restricted cash at December 31,
|
$
|
1,887
|
$
|
810
|
||||
Supplemental cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
612
|
$
|
1,469
|
||||
Income tax payments, net
|
$
|
8
|
$
|
4
|
||||
Reorganization items, net
|
$
|
270
|
$
|
-
|
||||
Non-cash investing and financing activities:
|
||||||||
Increase (decrease) in capital expenditures due to changes in accounts payable
|
$
|
(117
|
)
|
$
|
13
|
For the three months ended
|
For the twelve months ended
|
|||||||||||||||||||
($ in millions)
|
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
|||||||||||||||
Net income (loss)
|
$
|
(50
|
)
|
$
|
15
|
$
|
(263
|
)
|
$
|
(528
|
)
|
$
|
(6,252
|
)
|
||||||
Add back (subtract):
|
||||||||||||||||||||
Income tax expense (benefit)
|
7
|
(11
|
)
|
(74
|
)
|
(84
|
)
|
(611
|
)
|
|||||||||||
Interest expense
|
98
|
121
|
391
|
762
|
1,535
|
|||||||||||||||
Investment and other loss, net
|
14
|
14
|
9
|
43
|
37
|
|||||||||||||||
Pension settlement costs
|
-
|
-
|
57
|
159
|
57
|
|||||||||||||||
Loss on extinguishment of debt
|
72
|
-
|
-
|
72
|
20
|
|||||||||||||||
Reorganization items, net
|
136
|
131
|
-
|
409
|
-
|
|||||||||||||||
Operating income (loss)
|
277
|
270
|
120
|
833
|
(5,214
|
)
|
||||||||||||||
Depreciation and amortization
|
394
|
392
|
420
|
1,598
|
1,720
|
|||||||||||||||
EBITDA
|
$
|
671
|
$
|
662
|
$
|
540
|
$
|
2,431
|
$
|
(3,494
|
)
|
|||||||||
Add back:
|
||||||||||||||||||||
Pension/OPEB expense
|
20
|
24
|
19
|
90
|
78
|
|||||||||||||||
Restructuring costs and other charges
|
-
|
3
|
82
|
87
|
166
|
|||||||||||||||
Stock-based compensation expense
|
-
|
1
|
5
|
3
|
15
|
|||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
(5
|
)
|
(1
|
)
|
(6
|
)
|
||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
5,725
|
|||||||||||||||
Loss on disposal of Northwest Operations
|
2
|
-
|
32
|
162
|
446
|
|||||||||||||||
Adjusted EBITDA
|
$
|
693
|
$
|
690
|
$
|
673
|
$
|
2,772
|
$
|
2,930
|
||||||||||
EBITDA margin
|
39.6
|
%
|
38.4
|
%
|
30.1
|
%
|
34.9
|
%
|
-46.6
|
%
|
||||||||||
Adjusted EBITDA margin
|
40.9
|
%
|
40.0
|
%
|
37.6
|
%
|
39.8
|
%
|
39.1
|
%
|
For the three months ended
|
For the twelve months ended
|
|||||||||||||||||||||||||||||||||||||||
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
||||||||||||||||||||||||||||||||||||
($ 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 Income
(Loss)
|
Basic
Earnings
(Loss) Per
Share
|
Net Income
(Loss)
|
Basic
Earnings
(Loss) Per
Share
|
||||||||||||||||||||||||||||||
Net income (loss) attributable to Frontier common shareholders
|
$
|
(50
|
)
|
$
|
(0.48
|
)
|
$
|
15
|
$
|
0.14
|
$
|
(162
|
)
|
$
|
(1.55
|
)
|
$
|
(402
|
)
|
$
|
(3.85
|
)
|
$
|
(5,911
|
)
|
$
|
(56.80
|
)
|
||||||||||||
Restructuring costs and other charges
|
-
|
3
|
82
|
87
|
168
|
|||||||||||||||||||||||||||||||||||
Pension settlement costs
|
-
|
-
|
57
|
159
|
57
|
|||||||||||||||||||||||||||||||||||
Reorganization items, net
|
136
|
131
|
-
|
409
|
-
|
|||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt
|
72
|
-
|
-
|
72
|
20
|
|||||||||||||||||||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
5,725
|
|||||||||||||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
2
|
-
|
32
|
162
|
446
|
|||||||||||||||||||||||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
(5
|
)
|
(1
|
)
|
(6
|
)
|
||||||||||||||||||||||||||||||||
Certain other tax items (1)
|
51
|
(15
|
)
|
41
|
16
|
160
|
||||||||||||||||||||||||||||||||||
Income tax effect on above items:
|
||||||||||||||||||||||||||||||||||||||||
Restructuring costs and other charges
|
-
|
(1
|
)
|
(21
|
)
|
(23
|
)
|
(40
|
)
|
|||||||||||||||||||||||||||||||
Pension settlement costs
|
-
|
-
|
(14
|
)
|
(37
|
)
|
(14
|
)
|
||||||||||||||||||||||||||||||||
Reorganization items, net
|
(2
|
)
|
(24
|
)
|
-
|
(48
|
)
|
-
|
||||||||||||||||||||||||||||||||
Loss on extinguishment of debt
|
(31
|
)
|
-
|
-
|
(31
|
)
|
(4
|
)
|
||||||||||||||||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
(524
|
)
|
||||||||||||||||||||||||||||||||||
Loss on disposal of business
|
(8
|
)
|
-
|
-
|
(44
|
)
|
-
|
|||||||||||||||||||||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
1
|
-
|
1
|
|||||||||||||||||||||||||||||||||||
$
|
220
|
$
|
2.11
|
$
|
94
|
$
|
0.90
|
$
|
173
|
$
|
1.66
|
$
|
721
|
$
|
6.90
|
$
|
5,989
|
$
|
57.55
|
|||||||||||||||||||||
Adjusted net income (loss) attributable to Frontier common shareholders(2)
|
$
|
170
|
$
|
1.63
|
$
|
109
|
$
|
1.04
|
$
|
11
|
$
|
0.11
|
$
|
319
|
$
|
3.05
|
$
|
78
|
$
|
0.75
|
(1)
|
Includes impact arising from federal research and development credits, changes in certain deferred tax balances, state tax law changes, state filing method
change, and the net impact of uncertain tax positions.
|
(2)
|
Adjusted net income (loss) attributable to Frontier common shareholders may not sum due to rounding.
|
For the three months ended
|
For the twelve months ended
|
|||||||||||||||||||
($ in millions)
|
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
December 31, 2020
|
December 31, 2019
|
|||||||||||||||
Adjusted Operating Expenses
|
||||||||||||||||||||
Total operating expenses
|
$
|
1,418
|
$
|
1,456
|
$
|
1,672
|
$
|
6,130
|
$
|
12,716
|
||||||||||
Subtract:
|
||||||||||||||||||||
Depreciation and amortization
|
394
|
392
|
420
|
1,598
|
1,720
|
|||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
5,725
|
|||||||||||||||
Loss on disposal of Northwest Operations
|
2
|
-
|
32
|
162
|
446
|
|||||||||||||||
Pension/OPEB expense
|
20
|
24
|
19
|
90
|
78
|
|||||||||||||||
Restructuring costs and other charges
|
-
|
3
|
82
|
87
|
166
|
|||||||||||||||
Stock-based compensation expense
|
-
|
1
|
5
|
3
|
15
|
|||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
(5
|
)
|
(1
|
)
|
(6
|
)
|
||||||||||||
Adjusted operating expenses
|
$
|
1,002
|
$
|
1,036
|
$
|
1,119
|
$
|
4,191
|
$
|
4,572
|
For the three months ended
|
||||||||||||||||||||||||||||||||||||
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
||||||||||||||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier
|
Northwest
Ops (2) |
Remaining
Properties |
|||||||||||||||||||||||||||
Data and Internet services
|
$
|
834
|
$
|
-
|
$
|
834
|
$
|
838
|
$
|
-
|
$
|
838
|
$
|
898
|
$
|
76
|
$
|
822
|
||||||||||||||||||
Voice services
|
490
|
-
|
490
|
500
|
-
|
500
|
600
|
45
|
555
|
|||||||||||||||||||||||||||
Video services
|
181
|
-
|
181
|
186
|
-
|
186
|
233
|
11
|
222
|
|||||||||||||||||||||||||||
Other
|
101
|
-
|
101
|
103
|
-
|
103
|
120
|
12
|
108
|
|||||||||||||||||||||||||||
Revenue from contracts with customers
|
1,606
|
-
|
1,606
|
1,627
|
-
|
1,627
|
1,851
|
144
|
1,707
|
|||||||||||||||||||||||||||
Subsidy revenue
|
89
|
-
|
89
|
99
|
-
|
99
|
91
|
6
|
85
|
|||||||||||||||||||||||||||
Revenue
|
1,695
|
-
|
1,695
|
1,726
|
-
|
1,726
|
1,942
|
150
|
1,792
|
|||||||||||||||||||||||||||
Operating expenses (3):
|
||||||||||||||||||||||||||||||||||||
Network access expenses
|
208
|
-
|
208
|
226
|
-
|
226
|
284
|
11
|
273
|
|||||||||||||||||||||||||||
Network related expenses
|
421
|
-
|
421
|
431
|
-
|
431
|
445
|
19
|
426
|
|||||||||||||||||||||||||||
Selling, general and administrative expenses
|
393
|
-
|
393
|
404
|
-
|
404
|
458
|
19
|
439
|
|||||||||||||||||||||||||||
Depreciation and amortization
|
394
|
-
|
394
|
392
|
-
|
392
|
420
|
-
|
420
|
|||||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
2
|
-
|
2
|
-
|
-
|
-
|
32
|
-
|
32
|
|||||||||||||||||||||||||||
Restructuring costs and other charges
|
-
|
-
|
-
|
3
|
-
|
3
|
82
|
-
|
82
|
|||||||||||||||||||||||||||
Total operating expenses
|
1,418
|
-
|
1,418
|
1,456
|
-
|
1,456
|
1,721
|
49
|
1,672
|
|||||||||||||||||||||||||||
Operating income
|
277
|
-
|
277
|
270
|
-
|
270
|
221
|
101
|
120
|
|||||||||||||||||||||||||||
Consumer
|
$
|
857
|
$
|
-
|
$
|
857
|
$
|
859
|
$
|
-
|
$
|
859
|
$
|
1,002
|
$
|
79
|
$
|
923
|
||||||||||||||||||
Commercial
|
749
|
-
|
749
|
768
|
-
|
768
|
849
|
65
|
784
|
|||||||||||||||||||||||||||
Revenue from contracts with customers
|
1,606
|
-
|
1,606
|
1,627
|
-
|
1,627
|
1,851
|
144
|
1,707
|
|||||||||||||||||||||||||||
Subsidy revenue
|
89
|
-
|
89
|
99
|
-
|
99
|
91
|
6
|
85
|
|||||||||||||||||||||||||||
Total revenue
|
$
|
1,695
|
$
|
-
|
$
|
1,695
|
$
|
1,726
|
$
|
-
|
$
|
1,726
|
$
|
1,942
|
$
|
150
|
$
|
1,792
|
For the twelve months ended
|
||||||||||||||||||||||||
December 31, 2020
|
December 31, 2019
|
|||||||||||||||||||||||
Consolidated
|
Northwest
|
Remaining
|
Consolidated
|
Northwest
|
Remaining
|
|||||||||||||||||||
($ in millions)
|
Frontier
|
Ops (1)
|
Properties
|
Frontier
|
Ops (2)
|
Properties
|
||||||||||||||||||
Data and Internet services
|
$
|
3,478
|
$
|
102
|
$
|
3,376
|
$
|
3,756
|
$
|
310
|
$
|
3,446
|
||||||||||||
Voice services
|
2,085
|
57
|
2,028
|
2,500
|
185
|
2,315
|
||||||||||||||||||
Video services
|
789
|
13
|
776
|
1,005
|
46
|
959
|
||||||||||||||||||
Other
|
429
|
12
|
417
|
477
|
39
|
438
|
||||||||||||||||||
Revenue from contracts with customers
|
6,781
|
184
|
6,597
|
7,738
|
580
|
7,158
|
||||||||||||||||||
Subsidy revenue
|
374
|
8
|
366
|
369
|
25
|
344
|
||||||||||||||||||
Revenue
|
7,155
|
192
|
6,963
|
8,107
|
605
|
7,502
|
||||||||||||||||||
Operating expenses (3):
|
||||||||||||||||||||||||
Network access expenses
|
975
|
14
|
961
|
1,247
|
51
|
1,196
|
||||||||||||||||||
Network related expenses
|
1,726
|
26
|
1,700
|
1,810
|
78
|
1,732
|
||||||||||||||||||
Selling, general and administrative expenses
|
1,648
|
26
|
1,622
|
1,804
|
73
|
1,731
|
||||||||||||||||||
Depreciation and amortization
|
1,598
|
-
|
1,598
|
1,780
|
60
|
1,720
|
||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
5,725
|
-
|
5,725
|
||||||||||||||||||
Loss on disposal of Northwest Operations
|
162
|
-
|
162
|
446
|
-
|
446
|
||||||||||||||||||
Restructuring costs and other charges
|
87
|
-
|
87
|
168
|
2
|
166
|
||||||||||||||||||
Total operating expenses
|
6,196
|
66
|
6,130
|
12,980
|
264
|
12,716
|
||||||||||||||||||
Operating income (loss)
|
959
|
126
|
833
|
(4,873
|
)
|
341
|
(5,214
|
)
|
||||||||||||||||
Consumer
|
$
|
3,586
|
$
|
102
|
$
|
3,484
|
$
|
4,153
|
$
|
322
|
$
|
3,831
|
||||||||||||
Commercial
|
3,195
|
82
|
3,113
|
3,585
|
258
|
3,327
|
||||||||||||||||||
Revenue from contracts with customers
|
6,781
|
184
|
6,597
|
7,738
|
580
|
7,158
|
||||||||||||||||||
Subsidy revenue
|
374
|
8
|
366
|
369
|
25
|
344
|
||||||||||||||||||
Total revenue
|
$
|
7,155
|
$
|
192
|
$
|
6,963
|
$
|
8,107
|
$
|
605
|
$
|
7,502
|
(1)
|
Amounts represent the financial results of our Northwest Operations for the four month period ended April 30, 2020.
|
(2)
|
Amounts represent the financial results of our Northwest Operations for the three and twelve months ended December 31, 2019.
|
(3)
|
Operating expenses for Northwest Ops do not include allocated expenses which are included in operating expenses for our Remaining
Properties.
|
|
As of or for the three months ended
|
|||||||||||||||||||||||||||||||||||
|
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
|||||||||||||||||||||||||||||||||
|
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
|||||||||||||||||||||||||||
Customers (in thousands)
|
3,571
|
N/A
|
N/A
|
3,620
|
N/A
|
N/A
|
4,118
|
N/A
|
N/A
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Consumer customer metrics
|
||||||||||||||||||||||||||||||||||||
Customers (in thousands)
|
3,264
|
-
|
3,264
|
3,305
|
-
|
3,305
|
3,747
|
335
|
3,412
|
|||||||||||||||||||||||||||
Net customer additions (losses)
|
(42
|
)
|
-
|
(42
|
)
|
(36
|
)
|
-
|
(36
|
)
|
(64
|
)
|
(6
|
)
|
(58
|
)
|
||||||||||||||||||||
Average monthly consumer revenue per customer
|
$
|
87.00
|
N/A
|
$
|
87.00
|
$
|
86.19
|
N/A
|
$
|
86.19
|
$
|
88.40
|
$
|
77.74
|
$
|
89.45
|
||||||||||||||||||||
Customer monthly churn
|
1.67
|
%
|
N/A
|
1.67
|
%
|
1.81
|
%
|
N/A
|
1.81
|
%
|
1.93
|
%
|
1.66
|
%
|
1.95
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Commercial customer metrics
|
||||||||||||||||||||||||||||||||||||
Customers (in thousands)
|
307
|
N/A
|
N/A
|
315
|
N/A
|
N/A
|
371
|
N/A
|
N/A
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Broadband subscriber metrics
|
||||||||||||||||||||||||||||||||||||
Broadband subscribers (in thousands)
|
3,069
|
-
|
3,069
|
3,119
|
-
|
3,119
|
3,513
|
302
|
3,211
|
|||||||||||||||||||||||||||
Net subscriber additions (losses)
|
(49
|
)
|
-
|
(49
|
)
|
(23
|
)
|
-
|
(23
|
)
|
(42
|
)
|
(4
|
)
|
(38
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Video (excl. DISH) subscriber metrics
|
||||||||||||||||||||||||||||||||||||
Video subscribers - (in thousands)
|
485
|
-
|
485
|
518
|
-
|
518
|
660
|
29
|
631
|
|||||||||||||||||||||||||||
Net subscriber additions (losses)
|
(33
|
)
|
-
|
(33
|
)
|
(42
|
)
|
-
|
(42
|
)
|
(38
|
)
|
(2
|
)
|
(36
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
DISH subscriber metrics
|
||||||||||||||||||||||||||||||||||||
DISH subscribers (in thousands)
|
134
|
-
|
134
|
139
|
-
|
139
|
173
|
17
|
156
|
|||||||||||||||||||||||||||
Net subscriber additions (losses)
|
(5
|
)
|
-
|
(5
|
)
|
(5
|
)
|
-
|
(5
|
)
|
(8
|
)
|
(1
|
)
|
(7
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Employees
|
16,200
|
-
|
16,200
|
16,302
|
-
|
16,302
|
18,317
|
950
|
17,367
|
|
As of or for the twelve months ended
|
|||||||||||||||||||||||
|
December 31, 2020
|
December 31, 2019
|
||||||||||||||||||||||
|
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops
|
Remaining
Properties |
||||||||||||||||||
Customers (in thousands)
|
3,571
|
N/A
|
N/A
|
4,118
|
N/A
|
N/A
|
||||||||||||||||||
|
||||||||||||||||||||||||
Consumer customer metrics
|
||||||||||||||||||||||||
Customers (in thousands)
|
3,264
|
-
|
3,264
|
3,747
|
335
|
3,412
|
||||||||||||||||||
Net customer additions (losses)
|
(483
|
)
|
(335
|
)
|
(148
|
)
|
(313
|
)
|
(23
|
)
|
(290
|
)
|
||||||||||||
Average monthly consumer revenue per customer
|
$
|
86.65
|
$
|
76.74
|
$
|
86.97
|
$
|
88.70
|
$
|
77.23
|
$
|
89.82
|
||||||||||||
Customer monthly churn
|
1.73
|
%
|
1.51
|
%
|
1.74
|
%
|
2.07
|
%
|
1.74
|
%
|
2.11
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Commercial customer metrics
|
||||||||||||||||||||||||
Customers (in thousands)
|
307
|
N/A
|
N/A
|
371
|
N/A
|
N/A
|
||||||||||||||||||
|
||||||||||||||||||||||||
Broadband subscriber metrics
|
||||||||||||||||||||||||
Broadband subscribers (in thousands)
|
3,069
|
-
|
3,069
|
3,513
|
302
|
3,211
|
||||||||||||||||||
Net subscriber additions (losses)
|
(444
|
)
|
(302
|
)
|
(142
|
)
|
(222
|
)
|
(16
|
)
|
(206
|
)
|
||||||||||||
|
||||||||||||||||||||||||
Video (excl. DISH) subscriber metrics
|
||||||||||||||||||||||||
Video subscribers - (in thousands)
|
485
|
-
|
485
|
660
|
29
|
631
|
||||||||||||||||||
Net subscriber additions (losses)
|
(175
|
)
|
(29
|
)
|
(146
|
)
|
(178
|
)
|
(9
|
)
|
(169
|
)
|
||||||||||||
|
||||||||||||||||||||||||
DISH subscriber metrics
|
||||||||||||||||||||||||
DISH subscribers (in thousands)
|
134
|
-
|
134
|
173
|
17
|
156
|
||||||||||||||||||
Net subscriber additions (losses)
|
(39
|
)
|
(17
|
)
|
(22
|
)
|
(32
|
)
|
(3
|
)
|
(29
|
)
|
||||||||||||
|
||||||||||||||||||||||||
Employees
|
16,200
|
-
|
16,200
|
18,317
|
950
|
17,367
|
For the three months ended
|
||||||||||||||||||||||||||||||||||||
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
||||||||||||||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops (2) |
Remaining
Properties |
|||||||||||||||||||||||||||
Net income (loss)
|
$
|
(50
|
)
|
$
|
-
|
$
|
(50
|
)
|
$
|
15
|
$
|
-
|
$
|
15
|
$
|
(162
|
)
|
$
|
101
|
$
|
(263
|
)
|
||||||||||||||
Add back (subtract):
|
||||||||||||||||||||||||||||||||||||
Income tax expense (benefit)
|
7
|
-
|
7
|
(11
|
)
|
-
|
(11
|
)
|
(74
|
)
|
-
|
(74
|
)
|
|||||||||||||||||||||||
Interest expense
|
98
|
-
|
98
|
121
|
-
|
121
|
391
|
-
|
391
|
|||||||||||||||||||||||||||
Investment and other loss, net
|
14
|
-
|
14
|
14
|
-
|
14
|
9
|
-
|
9
|
|||||||||||||||||||||||||||
Pension settlement costs
|
-
|
-
|
-
|
-
|
-
|
-
|
57
|
-
|
57
|
|||||||||||||||||||||||||||
Loss on extinguishment of debt
|
72
|
-
|
72
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Reorganization items, net
|
136
|
-
|
136
|
131
|
-
|
131
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Operating income
|
277
|
-
|
277
|
270
|
-
|
270
|
221
|
101
|
120
|
|||||||||||||||||||||||||||
Depreciation and amortization
|
394
|
-
|
394
|
392
|
-
|
392
|
420
|
-
|
420
|
|||||||||||||||||||||||||||
EBITDA
|
671
|
-
|
671
|
662
|
-
|
662
|
641
|
101
|
540
|
|||||||||||||||||||||||||||
Add back:
|
||||||||||||||||||||||||||||||||||||
Pension/OPEB expense
|
20
|
-
|
20
|
24
|
-
|
24
|
19
|
-
|
19
|
|||||||||||||||||||||||||||
Restructuring costs and other charges
|
-
|
-
|
-
|
3
|
-
|
3
|
82
|
-
|
82
|
|||||||||||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
1
|
-
|
1
|
5
|
-
|
5
|
|||||||||||||||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
-
|
-
|
-
|
-
|
(5
|
)
|
-
|
(5
|
)
|
|||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
2
|
-
|
2
|
-
|
-
|
-
|
32
|
-
|
32
|
|||||||||||||||||||||||||||
Adjusted EBITDA
|
$
|
693
|
$
|
-
|
$
|
693
|
$
|
690
|
$
|
-
|
$
|
690
|
$
|
774
|
$
|
101
|
$
|
673
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
EBITDA margin
|
39.6
|
%
|
N/A
|
39.6
|
%
|
38.4
|
%
|
N/A
|
38.4
|
%
|
33.0
|
%
|
67.3
|
%
|
30.1
|
%
|
||||||||||||||||||||
Adjusted EBITDA margin
|
40.9
|
%
|
N/A
|
40.9
|
%
|
40.0
|
%
|
N/A
|
40.0
|
%
|
39.9
|
%
|
67.3
|
%
|
37.6
|
%
|
||||||||||||||||||||
Free Cash Flow
|
||||||||||||||||||||||||||||||||||||
Net cash provided from operating activities
|
$
|
497
|
N/A
|
N/A
|
$
|
542
|
N/A
|
N/A
|
$
|
405
|
N/A
|
N/A
|
||||||||||||||||||||||||
Capital expenditures
|
(356
|
)
|
N/A
|
N/A
|
(314
|
)
|
N/A
|
N/A
|
(328
|
)
|
N/A
|
N/A
|
||||||||||||||||||||||||
Operating free cash flow
|
$
|
141
|
N/A
|
N/A
|
$
|
228
|
N/A
|
N/A
|
$
|
77
|
N/A
|
N/A
|
For the twelve months ended
|
||||||||||||||||||||||||
December 31, 2020
|
December 31, 2019
|
|||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier |
Northwest
Ops (1) |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops (2) |
Remaining
Properties |
||||||||||||||||||
Net income (loss)
|
$
|
(402
|
)
|
$
|
126
|
$
|
(528
|
)
|
$
|
(5,911
|
)
|
$
|
341
|
$
|
(6,252
|
)
|
||||||||
Add back (subtract):
|
||||||||||||||||||||||||
Income tax benefit
|
(84
|
)
|
-
|
(84
|
)
|
(611
|
)
|
-
|
(611
|
)
|
||||||||||||||
Interest expense
|
762
|
-
|
762
|
1,535
|
-
|
1,535
|
||||||||||||||||||
Investment and other loss, net
|
43
|
-
|
43
|
37
|
-
|
37
|
||||||||||||||||||
Pension settlement costs
|
159
|
-
|
159
|
57
|
-
|
57
|
||||||||||||||||||
Loss on extinguishment of debt
|
72
|
-
|
72
|
20
|
-
|
20
|
||||||||||||||||||
Reorganization items, net
|
409
|
-
|
409
|
-
|
-
|
-
|
||||||||||||||||||
Operating income (loss)
|
959
|
126
|
833
|
(4,873
|
)
|
341
|
(5,214
|
)
|
||||||||||||||||
Depreciation and amortization
|
1,598
|
-
|
1,598
|
1,780
|
60
|
1,720
|
||||||||||||||||||
EBITDA
|
2,557
|
126
|
2,431
|
(3,093
|
)
|
401
|
(3,494
|
)
|
||||||||||||||||
Add back:
|
||||||||||||||||||||||||
Pension/OPEB expense
|
90
|
-
|
90
|
78
|
-
|
78
|
||||||||||||||||||
Restructuring costs and other charges
|
87
|
-
|
87
|
168
|
2
|
166
|
||||||||||||||||||
Stock-based compensation expense
|
3
|
-
|
3
|
15
|
-
|
15
|
||||||||||||||||||
Storm-related insurance proceeds
|
(1
|
)
|
-
|
(1
|
)
|
(6
|
)
|
-
|
(6
|
)
|
||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
5,725
|
-
|
5,725
|
||||||||||||||||||
Loss on disposal of Northwest Operations
|
162
|
-
|
162
|
446
|
-
|
446
|
||||||||||||||||||
Adjusted EBITDA
|
$
|
2,898
|
$
|
126
|
$
|
2,772
|
$
|
3,333
|
$
|
403
|
$
|
2,930
|
||||||||||||
|
||||||||||||||||||||||||
EBITDA margin
|
35.7
|
%
|
65.6
|
%
|
34.9
|
%
|
-38.2
|
%
|
66.3
|
%
|
-46.6
|
%
|
||||||||||||
Adjusted EBITDA margin
|
40.5
|
%
|
65.6
|
%
|
39.8
|
%
|
41.1
|
%
|
66.6
|
%
|
39.1
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Free Cash Flow
|
||||||||||||||||||||||||
Net cash provided from operating activities
|
$
|
1,989
|
N/A
|
N/A
|
$
|
1,508
|
N/A
|
N/A
|
||||||||||||||||
Capital expenditures
|
(1,181
|
)
|
N/A
|
N/A
|
(1,226
|
)
|
N/A
|
N/A
|
||||||||||||||||
Operating free cash flow
|
$
|
808
|
N/A
|
N/A
|
$
|
282
|
N/A
|
N/A
|
(1)
|
Amounts represent the financial results of our Northwest Operations for the four month period ended April 30, 2020. Net loss does not
include impact of income taxes and interest expense.
|
(2)
|
Amounts represent the financial results of our Northwest Operations for the three and twelve months ended December 31, 2019. Net loss does
not include the impact of income taxes and interest expense.
|
For the three months ended
|
||||||||||||||||||||||||||||||||||||
December 31, 2020
|
September 30, 2020
|
December 31, 2019
|
||||||||||||||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier
|
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops (2) |
Remaining
Properties |
|||||||||||||||||||||||||||
Adjusted Operating Expenses
|
||||||||||||||||||||||||||||||||||||
Total operating expenses (3)
|
$
|
1,418
|
$
|
-
|
$
|
1,418
|
$
|
1,456
|
$
|
-
|
$
|
1,456
|
$
|
1,721
|
$
|
49
|
$
|
1,672
|
||||||||||||||||||
Subtract:
|
||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
394
|
-
|
394
|
392
|
-
|
392
|
420
|
-
|
420
|
|||||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
2
|
-
|
2
|
-
|
-
|
-
|
32
|
-
|
32
|
|||||||||||||||||||||||||||
Pension/OPEB expense
|
20
|
-
|
20
|
24
|
-
|
24
|
19
|
-
|
19
|
|||||||||||||||||||||||||||
Restructuring costs and other charges
|
-
|
-
|
-
|
3
|
-
|
3
|
82
|
-
|
82
|
|||||||||||||||||||||||||||
Stock-based compensation expense
|
-
|
-
|
-
|
1
|
-
|
1
|
5
|
-
|
5
|
|||||||||||||||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
-
|
-
|
-
|
-
|
(5
|
)
|
-
|
(5
|
)
|
|||||||||||||||||||||||||
Adjusted operating expenses
|
$
|
1,002
|
$
|
-
|
$
|
1,002
|
$
|
1,036
|
$
|
-
|
$
|
1,036
|
$
|
1,168
|
$
|
49
|
$
|
1,119
|
For the twelve months ended
|
||||||||||||||||||||||||
December 31, 2020
|
December 31, 2019
|
|||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier |
Northwest
Ops (1) |
Remaining
Properties |
Consolidated
Frontier |
Northwest
Ops (2) |
Remaining
Properties |
||||||||||||||||||
Adjusted Operating Expenses
|
||||||||||||||||||||||||
Total operating expenses (3)
|
$
|
6,196
|
$
|
66
|
$
|
6,130
|
$
|
12,980
|
$
|
264
|
$
|
12,716
|
||||||||||||
Subtract:
|
||||||||||||||||||||||||
Depreciation and amortization
|
1,598
|
-
|
1,598
|
1,780
|
60
|
1,720
|
||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
5,725
|
-
|
5,725
|
||||||||||||||||||
Loss on disposal of Northwest Operations
|
162
|
-
|
162
|
446
|
-
|
446
|
||||||||||||||||||
Pension/OPEB expense
|
90
|
-
|
90
|
78
|
-
|
78
|
||||||||||||||||||
Restructuring costs and other charges
|
87
|
-
|
87
|
168
|
2
|
166
|
||||||||||||||||||
Stock-based compensation expense
|
3
|
-
|
3
|
15
|
-
|
15
|
||||||||||||||||||
Storm-related insurance proceeds
|
(1
|
)
|
-
|
(1
|
)
|
(6
|
)
|
-
|
(6
|
)
|
||||||||||||||
Adjusted operating expenses
|
$
|
4,257
|
$
|
66
|
$
|
4,191
|
$
|
4,774
|
$
|
202
|
$
|
4,572
|
(1)
|
Amounts represent the financial results of our Northwest Operations for the four month period ended April 30, 2020.
|
(2)
|
Amounts represent the financial results of our Northwest Operations for the three and twelve months ended December 31, 2019.
|
(3)
|
Operating expenses for Northwest Ops do not include allocated expenses which are included in operating expenses for our Remaining
Properties.
|
Document and Entity Information |
Mar. 03, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Mar. 03, 2021 |
Entity Registrant Name | FRONTIER COMMUNICATIONS CORP |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-11001 |
Entity Tax Identification Number | 06-0619596 |
Entity Address, Address Line One | 401 MERRITT 7 |
Entity Address, City or Town | NORWALK |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06851 |
City Area Code | 203 |
Local Phone Number | 614-5600 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000020520 |
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