EX-99.1 2 brhc10021164_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

Frontier Communications Corporation
(Debtor-In-Possession)
Unaudited Consolidated Financial Data

   
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
  

Frontier Communications Corporation
(Debtor-In-Possession)
Unaudited Financial Data for Remaining Properties  (Excluding Northwest Operations)

Note: The following table presents disaggregation of revenue for the operations located in the remaining 25 states (“Remaining Properties”) after excluding the Northwest Operations (“Northwest Ops”) through the date of sale from the Consolidated Company's results. See Schedule D for a reconciliation to the Total Company Results.

   
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
  

Frontier Communications Corporation
(Debtor-In-Possession)
Unaudited Operating Data for Remaining Properties  (Excluding Northwest Operations)

Note: The following table presents operating metrics for the operations located in the remaining 25 states (“Remaining Properties”) after excluding the Northwest Operations (“Northwest Ops”) through the date of sale from the Consolidated Company's results. See Schedule E for a reconciliation to the Total Company Results.

   
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
  

Frontier Communications Corporation
(Debtor-In-Possession)
Condensed Consolidated Balance Sheet Data

   
       
($ 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
  

Frontier Communications Corporation
(Debtor-In-Possession)
Consolidated Cash Flow Data
 
   
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
  

SCHEDULE A
Frontier Communications Corporation
(Debtor-In-Possession)
Unaudited Financial Data for Remaining Properties  (Excluding Northwest Operations)
Reconciliation of Non-GAAP Financial Measures

Note: The following table presents Non-GAAP Measures for the operations located in the remaining 25 states (“Remaining Properties”) after excluding the Northwest Operations (“Northwest Ops”) through the date of sale from the Consolidated Company's results. See Schedule F for a reconciliation to the Total Company Results.

   
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
%

SCHEDULE B
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Non-GAAP Financial Measures for Total Consolidated Operations

   
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.

SCHEDULE C
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Non-GAAP Financial Measures for Remaining Properties  (Excluding Northwest Operations)

Note: The following table presents Non-GAAP Measures for the operations located in the remaining 25 states (“Remaining Properties”) after excluding the Northwest Operations (“Northwest Ops”) through the date of sale from the Consolidated Company's results. See Schedule G for a reconciliation to the Total Company Results.

   
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
  

SCHEDULE D
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Non-GAAP Financial Measures for Remaining Properties to Consolidated Frontier

   
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.

SCHEDULE E
Frontier Communications Corporation
(Debtor-In-Possession)
Unaudited Operating Data for Remaining Properties  (Excluding Northwest Operations)

 
  
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
  

SCHEDULE F
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Non-GAAP Financial Measures for Remaining Properties to Consolidated Frontier

   
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.

SCHEDULE G
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Non-GAAP Financial Measures for Remaining Properties to Consolidated Frontier

   
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.