Verizon Reports Sustained Revenue Growth and Continued Strong Cash Flows for 4Q and Full-Year 2008
January 27, 2009
NEW YORK, NY – January 27, 2009 – Verizon Communications Inc. (NYSE:VZ) today reported that it continued to grow sales of broadband, wireless and strategic business services in the fourth quarter 2008. Strong customer and revenue growth contributed to 43 cents in diluted earnings per share (EPS) in the quarter, compared with 37 cents per share in the fourth quarter 2007.
On an adjusted basis (non-GAAP), fourth-quarter 2008 EPS was 61 cents, compared with 62 cents in the fourth quarter 2007.
On an annual basis, Verizon reported $2.26 in 2008 EPS from continuing operations, compared with $1.90 in 2007. On an adjusted annual basis, 2008 EPS from continuing operations was $2.54, a 7.6 percent increase, compared with 2007 EPS of $2.36.
‘Able to Compete Effectively in This Economic Environment’
Verizon has shown that it is able to compete effectively in this economic environment, said Chairman and CEO Ivan Seidenberg. We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fueled by strong sales volumes for broadband, wireless and strategic business services.
The Verizon story in 2008 was one of customer growth and product innovation, based on the strategic technology and broadband infrastructure investments we have made year after year, Seidenberg said. We have built a solid foundation to continue to create value for our customers and shareholders in 2009 and beyond.
Consolidated Revenue Growth
Verizon’s total operating revenues grew 3.4 percent in the fourth quarter 2008, increasing to $24.6 billion from $23.8 billion in the fourth quarter 2007. After adjusting for the spinoff of non-strategic local exchange and related Wireline business assets early in 2008 (non-GAAP), this represents an increase of 4.6 percent. Total operating expenses in the fourth quarter 2008 increased 1.9 percent to $20.8 billion, or 4.1 percent on an adjusted basis, compared with the fourth quarter 2007.
For 2008, annual operating revenues were $97.4 billion, an increase of 4.2 percent from 2007 on a reported basis and 5.1 percent on an adjusted basis. Operating expenses totaled $80.5 billion in 2008, an increase of 3.3 percent from 2007 on a reported basis and 4.2 percent on an adjusted basis.
Continued Strong Cash Flows
Cash flows from operations totaled $26.6 billion in 2008, compared with $25.7 billion in 2007. Dividends and share repurchases totaled $6.4 billion in 2008. Capital expenditures totaled $17.2 billion in 2008, compared with $17.5 billion in 2007. For 2009, Verizon is targeting capital spending, excluding amounts related to the acquisition of Alltel Corporation, to be less than the 2008 total.
At year-end 2008, total debt was $52.0 billion, compared with $44.8 billion at the end of the third quarter 2008. Verizon ended 2008 with $9.8 billion in cash and cash equivalents, most of which was held for use in completing the acquisition of Alltel in January 2009.
