Frontier Communications Parent, Inc. - FORM 8-K - EX-99.4 - 2009 KEY PRO FORMA FINANCIAL DATA - March 24, 2010

Attached files

file filename
8-K - FORM 8-K - Frontier Communications Parent, Inc.d8k.htm
EX-99.1 - UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION - Frontier Communications Parent, Inc.dex991.htm
EX-99.3 - RISK FACTORS - Frontier Communications Parent, Inc.dex993.htm
EX-99.5 - PRESS RELEASE - Frontier Communications Parent, Inc.dex995.htm
EX-99.2 - BUSINESS - REGULATORY ENVIRONMENT - Frontier Communications Parent, Inc.dex992.htm
Confidential
2009
2009
Pro Forma
Actual
Actual
Statistics
Frontier
SpinCo
Sub-Total
Synergies
Total
Revenue
$2,118
$3,953
$6,071
$0
$6,071
Adjusted EBITDA
(1)
1,149
       
1,819
      
2,968
      
500
      
3,468
      
% EBITDA Margin
54.3%
46.0%
48.9%
57.1%
Bridge to Free Cash Flow:
Interest Expense
(378)
          
(280)
         
(659)
         
-
        
(659)
         
Cash Taxes
(60)
           
(243)
         
(303)
         
(190)
      
(493)
         
Capital Expenditures
(231)
          
(558)
         
(789)
         
-
        
(789)
         
Other
11
             
-
           
11
            
-
        
11
            
Free Cash Flow
$491
$738
$1,229
$310
$1,539
Net Debt / Adj. EBITDA
3.9x
1.9x
2.6x
2.3x
Adj. EBITDA / Interest Exp.
3.0x
6.5x
4.5x
5.3x
Dividend ($0.75 / share)
(2)
$0
$0
$742
$0
$742
FCF Dividend Payout Ratio
–
–
60%
–
48%
2009 Key Pro Forma Financial Data
Notes
(1) See adjustments in Appendix, Reconciliation of Non-GAAP Financial Measures.
(2) Based on share price at the $7.75 mid-point of the collar.
(3) Assumes $3.4 billion of debt with blended interest rate of 8.25%.
(4) Adjusted to exclude $52 million of non-cash pension and OPEB expense at SpinCo.
(5) Includes assumed $65M of financing for deal costs.
(4)
(3)
(5)
Exhibit 99.4

Confidential
Non-GAAP Information
Use of Non-GAAP Information
This presentation contains non-GAAP financial information. For a reconciliation of these measures to the
most comparable measure prepared in accordance with GAAP, see the Appendix.   Neither Verizon nor
Verizon’s Separate Telephone Operations have historically used Adjusted EBITDA in connection with the
management of Verizon’s Separate Telephone Operations.  All information regarding Adjusted EBITDA in
this presentation has been prepared by Frontier.

Confidential
Reconciliation of Non-GAAP Financial Measures
Verizon's Separate
Pro Forma
Total
($ in millions)
Frontier
Telephone Operations
Adjustments
Pro Forma
EBITDA
Operating Income
606
$        
542
$                
219
$      
1,367
$   
Add back:
Depreciation and amortization
477
                
781
                        
253
              
1,511
          
EBITDA, as reported
1,083
$     
1,323
$             
472
$      
2,878
$   
Add/(subtract):
34
                  
52
                          
-
                
86
                
Severance and early retirement costs
4
                    
-
                         
-
                
4
                  
Acquisition and integration costs
28
                  
-
                         
(28)
                
-
              
Adjusted EBITDA
1,149
$     
1,375
$             
444
$      
2,968
$   
For the year ended December 31, 2009
Non-cash pension and other
postretirement costs

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