Attached files
file | filename |
---|---|
8-K - 8-K - Frontier Communications Parent, Inc. | brhc10016466_8k.htm |
Exhibit 99.1
Frontier Communications Corporation (Frontier) filed its Form 10-Q for the quarter ended September 30, 2020 with the SEC on November 4,
2020. The schedules contained in this Exhibit 99.1 include supplemental information regarding Frontier’s financial results.
Non-GAAP Financial Measures
Frontier uses certain non-GAAP financial measures in evaluating its performance, including EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted
EBITDA margin, operating free cash flow, adjusted operating expenses, and leverage ratio, each of which is described below. Management uses these non-GAAP financial measures internally to (i) assist in analyzing Frontier’s underlying financial
performance from period to period, (ii) analyze and evaluate strategic and operational decisions, (iii) establish criteria for compensation decisions, and (iv) assist in the understanding of Frontier’s ability to generate cash flow and, as a
result, to plan for future capital and operational decisions. Management believes that the presentation of these non-GAAP financial measures provides useful information to investors regarding Frontier’s financial condition and results of operations
because these measures, when used in conjunction with related GAAP financial measures (i) provide a more comprehensive view of Frontier’s core operations and ability to generate cash flow, (ii) provide investors with the financial analytical
framework upon which management bases financial, operational, compensation, and planning decisions and (iii) present measurements that investors and rating agencies have indicated to management are useful to them in assessing Frontier and its
results of operations.
A reconciliation of these measures to the most comparable financial measures calculated and presented in accordance with GAAP is included
in the accompanying tables. These non-GAAP financial measures are not measures of financial performance or liquidity under GAAP, nor are they alternatives to GAAP measures and they may not be comparable to similarly titled measures of other
companies.
EBITDA is defined as net income (loss) less income tax expense (benefit), interest expense, investment and other income (loss), pension
settlement costs, reorganization items, gains/losses on extinguishment of debt, and depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by total revenue.
Adjusted EBITDA is defined as EBITDA, as described above, adjusted to exclude, certain pension/OPEB expenses, restructuring costs and other
charges, stock-based compensation expense, goodwill impairment charges, and certain other non-recurring items. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue.
Management uses EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin to assist it in comparing performance from period to
period and as measures of operational performance. Management believes that these non-GAAP measures provide useful information for investors in evaluating Frontier’s operational performance from period to period because they exclude depreciation
and amortization expenses related to investments made in prior periods and are determined without regard to capital structure or investment activities. By excluding capital expenditures, debt repayments, among other factors, these non-GAAP
financial measures have certain shortcomings. Management compensates for these shortcomings by utilizing these non-GAAP financial measures in conjunction with the comparable GAAP financial measures.
Adjusted net income (loss) attributable to Frontier common shareholders is defined as net income (loss) attributable to Frontier common
shareholders and excludes restructuring costs and other charges, pension settlement costs, reorganization items, goodwill impairment charges, certain income tax items and the income tax effect of these items, and certain other non-recurring items.
Adjusting for these items allows investors to better understand and analyze Frontier’s financial performance over the periods presented.
Management defines operating free cash flow, a non-GAAP measure, as net cash provided from operating activities less capital expenditures.
Management uses operating free cash flow to assist it in comparing liquidity from period to period and to obtain a more comprehensive view of Frontier’s core operations and ability to generate cash flow. Management believes that this non-GAAP
measure is useful to investors in evaluating cash available to service debt. This non-GAAP financial measure has certain shortcomings; it does not represent the residual cash flow available for discretionary expenditures, as items such as debt
repayments are not deducted in determining such measure. Management compensates for these shortcomings by utilizing this non-GAAP financial measure in conjunction with the comparable GAAP financial measure.
Adjusted operating expenses is defined as operating expenses adjusted to exclude depreciation and
amortization, restructuring and other charges, goodwill impairment charges, certain pension/OPEB expenses, stock-based compensation expense, and certain other non-recurring items. Investors have indicated that this non-GAAP measure is useful in
evaluating Frontier’s performance.
The information in this press release should be read in conjunction with the financial statements and footnotes contained in Frontier’s
documents filed with the U.S. Securities and Exchange Commission.
About Frontier Communications
Frontier Communications Corporation (OTC:FTRCQ) is a leader in providing communications services to urban, suburban, and rural communities
in 25 states. Frontier offers a variety of services to residential customers over its fiber-optic and copper networks, including video, high-speed internet, advanced voice, and Frontier Secure® digital protection solutions. Frontier
Business offers communications solutions to small, medium, and enterprise businesses. More information about Frontier is available at www.frontier.com.
Frontier Communications Corporation
(Debtor-In-Possession)
Unaudited Consolidated Financial Data
For the quarter ended
|
For the nine months ended
|
|||||||||||||||||||
($ in millions and shares in thousands, except per share amounts)
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
|||||||||||||||
Statement of Operations Data
|
||||||||||||||||||||
Revenue
|
$
|
1,726
|
$
|
1,801
|
$
|
1,997
|
$
|
5,460
|
$
|
6,165
|
||||||||||
Operating expenses:
|
||||||||||||||||||||
Network access expenses
|
226
|
255
|
307
|
767
|
963
|
|||||||||||||||
Network related expenses
|
431
|
430
|
464
|
1,305
|
1,365
|
|||||||||||||||
Selling, general and administrative expenses
|
404
|
407
|
445
|
1,255
|
1,346
|
|||||||||||||||
Depreciation and amortization
|
392
|
397
|
422
|
1,204
|
1,360
|
|||||||||||||||
Goodwill impairment
|
-
|
-
|
276
|
-
|
5,725
|
|||||||||||||||
Loss on disposal of Northwest Operations
|
-
|
136
|
30
|
160
|
414
|
|||||||||||||||
Restructuring costs and other charges
|
3
|
36
|
27
|
87
|
86
|
|||||||||||||||
Total operating expenses
|
1,456
|
1,661
|
1,971
|
4,778
|
11,259
|
|||||||||||||||
Operating income (loss)
|
270
|
140
|
26
|
682
|
(5,094
|
)
|
||||||||||||||
|
||||||||||||||||||||
Investment and other loss, net
|
(14
|
)
|
(20
|
)
|
(10
|
)
|
(29
|
)
|
(28
|
)
|
||||||||||
Pension settlement costs
|
-
|
(56
|
)
|
-
|
(159
|
)
|
-
|
|||||||||||||
Loss on early extinguishment of debt
|
-
|
-
|
-
|
-
|
(20
|
)
|
||||||||||||||
Reorganization items, net
|
(131
|
)
|
(142
|
)
|
-
|
(273
|
)
|
-
|
||||||||||||
Interest expense (contractual interest for the three and nine months
ended September 30, 2020 were $372 million and $1,116 million, respectively)
|
(121
|
)
|
(160
|
)
|
(382
|
)
|
(664
|
)
|
(1,144
|
)
|
||||||||||
Income (Loss) before income taxes
|
4
|
|
(238
|
)
|
(366
|
)
|
(443
|
)
|
(6,286
|
)
|
||||||||||
Income tax benefit
|
(11
|
)
|
(57
|
)
|
(21
|
)
|
(91
|
)
|
(537
|
)
|
||||||||||
Net income (loss)
|
15
|
|
(181
|
)
|
(345
|
)
|
(352
|
)
|
(5,749
|
)
|
||||||||||
Weighted average shares outstanding - basic
|
104,526
|
104,525
|
104,135
|
104,460
|
104,031
|
|||||||||||||||
Weighted average shares outstanding - diluted | 104,866 |
104,525 |
104,135 |
104,460 |
104,031 |
|||||||||||||||
Basic and diluted net earnings (loss) per common share
|
$
|
0.14
|
|
$
|
(1.73
|
)
|
$
|
(3.31
|
)
|
$
|
(3.37
|
)
|
$
|
(55.26
|
)
|
|||||
Other Financial Data:
|
||||||||||||||||||||
Capital expenditures
|
$
|
314
|
$
|
225
|
$
|
318
|
$
|
825
|
$
|
898
|
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 quarter ended
|
For the nine months ended
|
|||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
||||||||||||||||
($ in millions)
|
||||||||||||||||||||
Selected Statement of Operations Data
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Data and Internet services
|
$
|
838
|
$
|
849
|
$
|
851
|
$
|
2,542
|
$
|
2,624
|
||||||||||
Voice services
|
500
|
509
|
574
|
1,538
|
1,760
|
|||||||||||||||
Video services
|
186
|
197
|
233
|
595
|
737
|
|||||||||||||||
Other
|
103
|
105
|
106
|
316
|
330
|
|||||||||||||||
Revenue from contracts with customers
|
1,627
|
1,660
|
1,764
|
4,991
|
5,451
|
|||||||||||||||
Subsidy and other revenue
|
99
|
94
|
85
|
277
|
259
|
|||||||||||||||
Total revenue
|
$
|
1,726
|
$
|
1,754
|
$
|
1,849
|
$
|
5,268
|
$
|
5,710
|
||||||||||
Other Financial Data
|
||||||||||||||||||||
Revenue:
|
||||||||||||||||||||
Consumer
|
$
|
859
|
$
|
874
|
$
|
943
|
$
|
2,627
|
$
|
2,908
|
||||||||||
Commercial
|
768
|
786
|
821
|
2,364
|
2,543
|
|||||||||||||||
Revenue from contracts with customers
|
1,627
|
1,660
|
1,764
|
4,991
|
5,451
|
|||||||||||||||
Subsidy and other revenue
|
99
|
94
|
85
|
277
|
259
|
|||||||||||||||
Total revenue
|
$
|
1,726
|
$
|
1,754
|
$
|
1,849
|
$
|
5,268
|
$
|
5,710
|
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 nine months ended
|
|||||||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
December 31, 2019
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
|||||||||||||||||||
Consumer customer metrics
|
||||||||||||||||||||||||
Customers (in thousands)
|
3,305
|
3,341
|
3,412
|
3,471
|
3,305
|
3,471
|
||||||||||||||||||
Net customer additions (losses)
|
(36
|
)
|
(32
|
)
|
(58
|
)
|
(83
|
)
|
(107
|
)
|
(231
|
)
|
||||||||||||
Average monthly consumer revenue per customer
|
$
|
86.19
|
$
|
86.68
|
$
|
89.45
|
$
|
89.45
|
$
|
86.95
|
$
|
89.94
|
||||||||||||
Customer monthly churn
|
1.81
|
%
|
1.63
|
%
|
1.95
|
%
|
2.27
|
%
|
1.76
|
%
|
2.16
|
%
|
||||||||||||
Broadband subscriber metrics
|
||||||||||||||||||||||||
Broadband subscribers (in thousands)
|
3,119
|
3,142
|
3,211
|
3,250
|
3,119
|
3,250
|
||||||||||||||||||
Net subscriber additions (losses)
|
(23
|
)
|
(41
|
)
|
(38
|
)
|
(65
|
)
|
(92
|
)
|
(167
|
)
|
||||||||||||
Video (excl. DISH) subscriber metrics
|
||||||||||||||||||||||||
Video subscribers (in thousands)
|
518
|
560
|
631
|
667
|
518
|
667
|
||||||||||||||||||
Net subscriber additions (losses)
|
(42
|
)
|
(34
|
)
|
(36
|
)
|
(38
|
)
|
(113
|
)
|
(133
|
)
|
||||||||||||
DISH subscriber metrics
|
||||||||||||||||||||||||
DISH subscribers (in thousands)
|
139
|
144
|
156
|
163
|
139
|
163
|
||||||||||||||||||
Net subscriber additions (losses)
|
(5
|
)
|
(5
|
)
|
(7
|
)
|
(8
|
)
|
(17
|
)
|
(22
|
)
|
||||||||||||
Employees
|
16,302
|
16,420
|
17,367
|
18,182
|
16,302
|
18,182
|
Frontier Communications Corporation
(Debtor-In-Possession)
Condensed Consolidated Balance Sheet Data
(unaudited)
|
||||||||
($ in millions)
|
September 30, 2020
|
December 31, 2019
|
||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,767
|
$
|
760
|
||||
Accounts receivable, net
|
562
|
629
|
||||||
Assets held for sale
|
-
|
1,401
|
||||||
Other current assets
|
309
|
247
|
||||||
Total current assets
|
2,638
|
3,037
|
||||||
Property, plant and equipment, net
|
12,858
|
12,963
|
||||||
Other assets
|
1,291
|
1,488
|
||||||
Total assets
|
$
|
16,787
|
$
|
17,488
|
||||
LIABILITIES AND EQUITY (DEFICIT)
|
||||||||
Current liabilities:
|
||||||||
Long-term debt due within one year
|
$
|
5,701
|
$
|
994
|
||||
Liabilities held for sale
|
-
|
123
|
||||||
Accounts payable and other current liabilities
|
1,411
|
1,687
|
||||||
Total current liabilities
|
7,112
|
2,804
|
||||||
Deferred income taxes and other liabilities
|
3,014
|
2,770
|
||||||
Liabilities subject to compromise
|
11,587
|
-
|
||||||
Long-term debt
|
-
|
16,308
|
||||||
Equity (deficit)
|
(4,926
|
)
|
(4,394
|
)
|
||||
Total liabilities and equity (deficit)
|
$
|
16,787
|
$
|
17,488
|
Frontier Communications Corporation
(Debtor-In-Possession)
Unaudited Consolidated Cash Flow Data
For the nine months ended
|
||||||||
($ in millions)
|
September 30, 2020
|
September 30, 2019
|
||||||
Cash flows provided from (used by) operating activities:
|
||||||||
Net loss
|
$
|
(352
|
)
|
$
|
(5,749
|
)
|
||
Adjustments to reconcile net loss to net cash provided from (used by) operating activities:
|
||||||||
Depreciation and amortization
|
1,204
|
1,360
|
||||||
Loss on extinguishment of debt
|
-
|
20
|
||||||
Pension settlement costs
|
159
|
-
|
||||||
Stock-based compensation expense
|
3
|
10
|
||||||
Amortization of deferred financing costs
|
13
|
23
|
||||||
Non-cash reorganization items, net
|
85
|
-
|
||||||
Other adjustments
|
3
|
2
|
||||||
Deferred income taxes
|
(100
|
)
|
(541
|
)
|
||||
Goodwill impairment
|
-
|
5,725
|
||||||
Loss on disposal of Northwest Operations
|
160
|
414
|
||||||
Change in accounts receivable
|
63
|
17
|
||||||
Change in accounts payable and other liabilities
|
334
|
(153
|
)
|
|||||
Change in prepaid expenses, income taxes, and other assets
|
(80
|
)
|
(25
|
)
|
||||
Net cash provided from operating activities
|
1,492
|
1,103
|
||||||
Cash flows provided from (used by) investing activities:
|
||||||||
Capital expenditures
|
(825
|
)
|
(898
|
)
|
||||
Proceeds from sale of Northwest Operations
|
1,131
|
-
|
||||||
Proceeds on sale of assets
|
7
|
76
|
||||||
Other
|
2
|
2
|
||||||
Net cash provided from (used by) investing activities
|
315
|
(820
|
)
|
|||||
Cash flows provided from (used by) financing activities:
|
||||||||
Long-term debt payments
|
(5
|
)
|
(2,003
|
)
|
||||
Proceeds from long-term debt borrowings
|
-
|
1,650
|
||||||
Proceeds from revolving debt
|
-
|
949
|
||||||
Repayment of revolving debt
|
(749
|
)
|
(475
|
)
|
||||
Financing costs paid
|
(19
|
)
|
(44
|
)
|
||||
Finance lease obligation payments
|
(18
|
)
|
(26
|
)
|
||||
Other
|
-
|
(5
|
)
|
|||||
Net cash provided from (used by) financing activities
|
(791
|
)
|
46
|
|||||
Increase (Decrease) in cash, cash equivalents, and restricted cash
|
1,016
|
329
|
||||||
Cash, cash equivalents, and restricted cash at January 1,
|
809
|
404
|
||||||
Cash, cash equivalents, and restricted cash at September 30,
|
$
|
1,825
|
$
|
733
|
||||
Supplemental cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
548
|
$
|
1,208
|
||||
Income tax payments, net
|
$
|
6
|
$
|
5
|
||||
Reorganization items, net
|
$
|
134
|
$
|
-
|
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 quarter ended
|
For the nine months ended
|
|||||||||||||||||||
($ in
millions)
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
|||||||||||||||
Net income (loss)
|
$
|
15
|
|
$
|
(210
|
)
|
$
|
(444
|
)
|
$
|
(478
|
)
|
$
|
(5,989
|
)
|
|||||
Add back (subtract):
|
||||||||||||||||||||
Income tax benefit
|
(11
|
)
|
(57
|
)
|
(21
|
)
|
(91
|
)
|
(537
|
)
|
||||||||||
Interest expense
|
121
|
160
|
382
|
664
|
1,144
|
|||||||||||||||
Investment and other loss, net
|
14
|
20
|
10
|
29
|
28
|
|||||||||||||||
Pension settlement costs
|
-
|
56
|
-
|
159
|
-
|
|||||||||||||||
Loss on extinguishment of debt
|
-
|
-
|
-
|
-
|
20
|
|||||||||||||||
Reorganization items, net
|
131
|
142
|
-
|
273
|
-
|
|||||||||||||||
Operating income (loss)
|
270
|
111
|
(73
|
)
|
556
|
(5,334
|
)
|
|||||||||||||
Depreciation and amortization
|
392
|
397
|
422
|
1,204
|
1,300
|
|||||||||||||||
EBITDA
|
$
|
662
|
$
|
508
|
$
|
349
|
$
|
1,760
|
$
|
(4,034
|
)
|
|||||||||
Add back:
|
||||||||||||||||||||
Pension/OPEB expense
|
24
|
23
|
20
|
70
|
59
|
|||||||||||||||
Restructuring costs and other charges
|
3
|
36
|
27
|
87
|
84
|
|||||||||||||||
Stock-based compensation expense
|
1
|
1
|
3
|
3
|
10
|
|||||||||||||||
Storm-related insurance proceeds
|
-
|
(1
|
)
|
-
|
(1
|
)
|
(1
|
)
|
||||||||||||
Goodwill impairment
|
-
|
-
|
276
|
-
|
5,725
|
|||||||||||||||
Loss on disposal of Northwest Operations
|
-
|
136
|
30
|
160
|
414
|
|||||||||||||||
Adjusted EBITDA
|
$
|
690
|
$
|
703
|
$
|
705
|
$
|
2,079
|
$
|
2,257
|
||||||||||
EBITDA margin
|
38.4
|
%
|
29.0
|
%
|
18.9
|
%
|
33.4
|
%
|
-70.6
|
%
|
||||||||||
Adjusted EBITDA margin
|
40.0
|
%
|
40.1
|
%
|
38.1
|
%
|
39.5
|
%
|
39.5
|
%
|
SCHEDULE B
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Non-GAAP Financial Measures for Total Consolidated Operations
For the quarter ended
|
For the nine months ended
|
|||||||||||||||||||||||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 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
|
$
|
15
|
|
$
|
0.14
|
|
$
|
(181
|
)
|
$
|
(1.73
|
)
|
$
|
(345
|
)
|
$
|
(3.31
|
)
|
$
|
(352
|
)
|
$
|
(3.37
|
)
|
$
|
(5,749
|
)
|
$
|
(55.26
|
)
|
||||||||||
Restructuring costs and other charges
|
3
|
36
|
27
|
87
|
86
|
|||||||||||||||||||||||||||||||||||
Pension settlement costs
|
-
|
56
|
-
|
159
|
-
|
|||||||||||||||||||||||||||||||||||
Reorganization items, net
|
131
|
142
|
-
|
273
|
-
|
|||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt
|
-
|
-
|
-
|
-
|
20
|
|||||||||||||||||||||||||||||||||||
Goodwill impairment
|
-
|
-
|
276
|
-
|
5,725
|
|||||||||||||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
-
|
136
|
30
|
160
|
414
|
|||||||||||||||||||||||||||||||||||
Storm-related insurance proceeds
|
-
|
(1
|
)
|
-
|
(1
|
)
|
(1
|
)
|
||||||||||||||||||||||||||||||||
Certain other tax items (1)
|
(15
|
)
|
(33
|
)
|
2
|
(35
|
)
|
119
|
||||||||||||||||||||||||||||||||
Income tax effect on above items:
|
||||||||||||||||||||||||||||||||||||||||
Restructuring costs and other charges
|
(1
|
)
|
(12
|
)
|
(6
|
)
|
(23
|
)
|
(19
|
)
|
||||||||||||||||||||||||||||||
Pension settlement costs
|
-
|
(12
|
)
|
-
|
(37
|
)
|
-
|
|||||||||||||||||||||||||||||||||
Reorganization items, net
|
(24
|
)
|
(22
|
)
|
-
|
(46
|
)
|
-
|
||||||||||||||||||||||||||||||||
Loss on extinguishment of debt
|
-
|
-
|
-
|
-
|
(4
|
)
|
||||||||||||||||||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
(524
|
)
|
||||||||||||||||||||||||||||||||||
Loss on disposal of business
|
-
|
(36
|
)
|
-
|
(36
|
)
|
-
|
|||||||||||||||||||||||||||||||||
$
|
94
|
$
|
0.90 |
$
|
254
|
$
|
2.43
|
$
|
329
|
$
|
3.16
|
$
|
501
|
$
|
4.80
|
$
|
5,816
|
$
|
55.91
|
|||||||||||||||||||||
Adjusted net income (loss) attributable to
|
||||||||||||||||||||||||||||||||||||||||
Frontier common shareholders(2)
|
$
|
109
|
$
|
1.04
|
$
|
73
|
$
|
0.70
|
$
|
(16
|
)
|
$
|
(0.15
|
)
|
$
|
149
|
$
|
1.43
|
$
|
67
|
$
|
0.64
|
(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 quarter ended
|
For the nine months ended
|
|||||||||||||||||||
($
in millions)
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
|||||||||||||||
Adjusted Operating Expenses
|
||||||||||||||||||||
Total operating expenses
|
$
|
1,456
|
$
|
1,643
|
$
|
1,922
|
$
|
4,712
|
$
|
11,044
|
||||||||||
Subtract:
|
||||||||||||||||||||
Depreciation and amortization
|
392
|
397
|
422
|
1,204
|
1,300
|
|||||||||||||||
Goodwill impairment
|
-
|
-
|
276
|
-
|
5,725
|
|||||||||||||||
Loss on disposal of Northwest Operations
|
-
|
136
|
30
|
160
|
414
|
|||||||||||||||
Pension/OPEB expense
|
24
|
23
|
20
|
70
|
59
|
|||||||||||||||
Restructuring costs and other charges
|
3
|
36
|
27
|
87
|
84
|
|||||||||||||||
Stock-based compensation expense
|
1
|
1
|
3
|
3
|
10
|
|||||||||||||||
Storm-related insurance proceeds
|
-
|
(1
|
)
|
-
|
(1
|
)
|
(1
|
)
|
||||||||||||
Adjusted operating expenses
|
$
|
1,036
|
$
|
1,051
|
$
|
1,144
|
$
|
3,189
|
$
|
3,453
|
SCHEDULE D
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Financial Results for Remaining Properties (Excluding Northwest Operations)
For the three months ended
|
||||||||||||||||||||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
||||||||||||||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (1)
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (2)
|
Remaining
Properties
|
|||||||||||||||||||||||||||
Data and Internet services
|
$
|
838
|
$
|
-
|
$
|
838
|
$
|
874
|
$
|
25
|
$
|
849
|
$
|
928
|
$
|
77
|
$
|
851
|
||||||||||||||||||
Voice services
|
500
|
-
|
500
|
523
|
14
|
509
|
621
|
47
|
574
|
|||||||||||||||||||||||||||
Video services
|
186
|
-
|
186
|
200
|
3
|
197
|
244
|
11
|
233
|
|||||||||||||||||||||||||||
Other
|
103
|
-
|
103
|
108
|
3
|
105
|
113
|
7
|
106
|
|||||||||||||||||||||||||||
Revenue from contracts with customers
|
1,627
|
-
|
1,627
|
1,705
|
45
|
1,660
|
1,906
|
142
|
1,764
|
|||||||||||||||||||||||||||
Subsidy revenue
|
99
|
-
|
99
|
96
|
2
|
94
|
91
|
6
|
85
|
|||||||||||||||||||||||||||
Revenue
|
1,726
|
-
|
1,726
|
1,801
|
47
|
1,754
|
1,997
|
148
|
1,849
|
|||||||||||||||||||||||||||
Operating expenses (3):
|
||||||||||||||||||||||||||||||||||||
Network access expenses
|
226
|
-
|
226
|
255
|
4
|
251
|
307
|
12
|
295
|
|||||||||||||||||||||||||||
Network related expenses
|
431
|
-
|
431
|
430
|
7
|
423
|
464
|
20
|
444
|
|||||||||||||||||||||||||||
Selling, general and administrative expenses
|
404
|
-
|
404
|
407
|
7
|
400
|
445
|
17
|
428
|
|||||||||||||||||||||||||||
Depreciation and amortization
|
392
|
-
|
392
|
397
|
-
|
397
|
422
|
-
|
422
|
|||||||||||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
276
|
-
|
276
|
|||||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
-
|
-
|
-
|
136
|
-
|
136
|
30
|
-
|
30
|
|||||||||||||||||||||||||||
Restructuring costs and other charges
|
3
|
-
|
3
|
36
|
-
|
36
|
27
|
-
|
27
|
|||||||||||||||||||||||||||
Total operating expenses
|
1,456
|
-
|
1,456
|
1,661
|
18
|
1,643
|
1,971
|
49
|
1,922
|
|||||||||||||||||||||||||||
Operating income (loss)
|
270
|
-
|
270
|
140
|
29
|
111
|
26
|
99
|
(73
|
)
|
||||||||||||||||||||||||||
Consumer
|
$
|
859
|
$
|
-
|
$
|
859
|
$
|
899
|
$
|
25
|
$
|
874
|
$
|
1,024
|
$
|
81
|
$
|
943
|
||||||||||||||||||
Commercial
|
768
|
-
|
768
|
806
|
20
|
786
|
882
|
61
|
821
|
|||||||||||||||||||||||||||
Revenue from contracts with customers
|
1,627
|
-
|
1,627
|
1,705
|
45
|
1,660
|
1,906
|
142
|
1,764
|
|||||||||||||||||||||||||||
Subsidy revenue
|
99
|
-
|
99
|
96
|
2
|
94
|
91
|
6
|
85
|
|||||||||||||||||||||||||||
Total revenue
|
$
|
1,726
|
$
|
-
|
$
|
1,726
|
$
|
1,801
|
$
|
47
|
$
|
1,754
|
$
|
1,997
|
$
|
148
|
$
|
1,849
|
For the nine months ended
|
||||||||||||||||||||||||
September 30, 2020
|
September 30, 2019
|
|||||||||||||||||||||||
Consolidated
|
Northwest
|
Remaining
|
Consolidated
|
Northwest
|
Remaining
|
|||||||||||||||||||
($ in millions)
|
Frontier
|
Ops (1)
|
Properties
|
Frontier
|
Ops (2)
|
Properties
|
||||||||||||||||||
Data and Internet services
|
$
|
2,644
|
$
|
102
|
$
|
2,542
|
$
|
2,858
|
$
|
234
|
$
|
2,624
|
||||||||||||
Voice services
|
1,595
|
57
|
1,538
|
1,900
|
140
|
1,760
|
||||||||||||||||||
Video services
|
608
|
13
|
595
|
772
|
35
|
737
|
||||||||||||||||||
Other
|
328
|
12
|
316
|
357
|
27
|
330
|
||||||||||||||||||
Revenue from contracts with customers
|
5,175
|
184
|
4,991
|
5,887
|
436
|
5,451
|
||||||||||||||||||
Subsidy revenue
|
285
|
8
|
277
|
278
|
19
|
259
|
||||||||||||||||||
Revenue
|
5,460
|
192
|
5,268
|
6,165
|
455
|
5,710
|
||||||||||||||||||
Operating expenses (3):
|
||||||||||||||||||||||||
Network access expenses
|
767
|
14
|
753
|
963
|
40
|
923
|
||||||||||||||||||
Network related expenses
|
1,305
|
26
|
1,279
|
1,365
|
59
|
1,306
|
||||||||||||||||||
Selling, general and administrative expenses
|
1,255
|
26
|
1,229
|
1,346
|
54
|
1,292
|
||||||||||||||||||
Depreciation and amortization
|
1,204
|
-
|
1,204
|
1,360
|
60
|
1,300
|
||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
5,725
|
-
|
5,725
|
||||||||||||||||||
Loss on disposal of Northwest Operations
|
160
|
-
|
160
|
414
|
-
|
414
|
||||||||||||||||||
Restructuring costs and other charges
|
87
|
-
|
87
|
86
|
2
|
84
|
||||||||||||||||||
Total operating expenses
|
4,778
|
66
|
4,712
|
11,259
|
215
|
11,044
|
||||||||||||||||||
Operating income (loss)
|
682
|
126
|
556
|
(5,094
|
)
|
240
|
(5,334
|
)
|
||||||||||||||||
Consumer
|
$
|
2,729
|
$
|
102
|
$
|
2,627
|
$
|
3,151
|
$
|
243
|
$
|
2,908
|
||||||||||||
Commercial
|
2,446
|
82
|
2,364
|
2,736
|
193
|
2,543
|
||||||||||||||||||
Revenue from contracts with customers
|
5,175
|
184
|
4,991
|
5,887
|
436
|
5,451
|
||||||||||||||||||
Subsidy revenue
|
285
|
8
|
277
|
278
|
19
|
259
|
||||||||||||||||||
Total revenue
|
$
|
5,460
|
$
|
192
|
$
|
5,268
|
$
|
6,165
|
$
|
455
|
$
|
5,710
|
(1) Amounts represent the financial results of our Northwest Operations for the one and four month periods ended April 30, 2020.
(2) Amounts represent the financial results of our Northwest Operations for the three and nine months ended September 30, 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
|
||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
December 31, 2019
|
September 30, 2019
|
|||||||||||||||||||||||||||||||||||||||||||||
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
|||||||||||||||||||||||||||||||||||||
Customers (in thousands)
|
3,620
|
N/A
|
N/A
|
3,664
|
N/A
|
N/A
|
4,118
|
N/A
|
N/A
|
4,193
|
N/A
|
N/A
|
||||||||||||||||||||||||||||||||||||
Consumer customer metrics
|
||||||||||||||||||||||||||||||||||||||||||||||||
Customers (in thousands)
|
3,305
|
-
|
3,305
|
3,341
|
-
|
3,341
|
3,747
|
335
|
3,412
|
3,812
|
341
|
3,471
|
||||||||||||||||||||||||||||||||||||
Net customer additions (losses)
|
(36
|
)
|
-
|
(36
|
)
|
(362
|
)
|
(330
|
)
|
(32
|
)
|
(64
|
)
|
(6
|
)
|
(58
|
)
|
(90
|
)
|
(7
|
)
|
(83
|
)
|
|||||||||||||||||||||||||
Average monthly consumer revenue per customer
|
$
|
86.19
|
N/A
|
$
|
86.19
|
$
|
85.01
|
$
|
76.74
|
$
|
86.68
|
$
|
88.40
|
$
|
77.74
|
$
|
89.45
|
$
|
88.45
|
$
|
78.25
|
$
|
89.45
|
|||||||||||||||||||||||||
Customer monthly churn
|
1.81
|
%
|
N/A
|
1.81
|
%
|
1.63
|
%
|
1.51
|
%
|
1.63
|
%
|
1.93
|
%
|
1.66
|
%
|
1.95
|
%
|
2.24
|
%
|
1.95
|
%
|
2.27
|
%
|
|||||||||||||||||||||||||
Commercial customer metrics
|
||||||||||||||||||||||||||||||||||||||||||||||||
Customers (in thousands)
|
315
|
N/A
|
N/A
|
323
|
N/A
|
N/A
|
371
|
N/A
|
N/A
|
381
|
N/A
|
N/A
|
||||||||||||||||||||||||||||||||||||
Broadband subscriber metrics
|
||||||||||||||||||||||||||||||||||||||||||||||||
Broadband subscribers (in thousands)
|
3,119
|
-
|
3,119
|
3,142
|
-
|
3,142
|
3,513
|
302
|
3,211
|
3,555
|
305
|
3,250
|
||||||||||||||||||||||||||||||||||||
Net subscriber additions (losses)
|
(23
|
)
|
-
|
(23
|
)
|
(338
|
)
|
(297
|
)
|
(41
|
)
|
(42
|
)
|
(4
|
)
|
(38
|
)
|
(71
|
)
|
(6
|
)
|
(65
|
)
|
|||||||||||||||||||||||||
Video (excl. DISH) subscriber metrics
|
||||||||||||||||||||||||||||||||||||||||||||||||
Video subscribers - in thousands)
|
518
|
-
|
518
|
560
|
-
|
560
|
660
|
29
|
631
|
698
|
31
|
667
|
||||||||||||||||||||||||||||||||||||
Net subscriber additions (losses)
|
(42
|
)
|
-
|
(42
|
)
|
(61
|
)
|
(27
|
)
|
(34
|
)
|
(38
|
)
|
(2
|
)
|
(36
|
)
|
(40
|
)
|
(2
|
)
|
(38
|
)
|
|||||||||||||||||||||||||
DISH subscriber metrics
|
||||||||||||||||||||||||||||||||||||||||||||||||
DISH subscribers (in thousands)
|
139
|
-
|
139
|
144
|
-
|
144
|
173
|
17
|
156
|
181
|
18
|
163
|
||||||||||||||||||||||||||||||||||||
Net subscriber additions (losses)
|
(5
|
)
|
-
|
(5
|
)
|
(21
|
)
|
(16
|
)
|
(5
|
)
|
(8
|
)
|
(1
|
)
|
(7
|
)
|
(9
|
)
|
(1
|
)
|
(8
|
)
|
|||||||||||||||||||||||||
Employees
|
16,302
|
-
|
16,302
|
16,420
|
-
|
16,420
|
18,317
|
950
|
17,367
|
19,132
|
950
|
18,182
|
As of or for the nine months ended
|
||||||||||||||||||||||||
September 30, 2020
|
September 30, 2019
|
|||||||||||||||||||||||
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
|||||||||||||||||||
Customers (in thousands)
|
3,620
|
N/A
|
N/A
|
4,193
|
N/A
|
N/A
|
||||||||||||||||||
Consumer customer metrics
|
||||||||||||||||||||||||
Customers (in thousands)
|
3,305
|
-
|
3,305
|
3,812
|
341
|
3,471
|
||||||||||||||||||
Net customer additions (losses)
|
(442
|
)
|
(335
|
)
|
(107
|
)
|
(248
|
)
|
(17
|
)
|
(231
|
)
|
||||||||||||
Average monthly consumer revenue per customer
|
$
|
86.53
|
$
|
76.74
|
$
|
86.95
|
$
|
88.79
|
$
|
77.05
|
$
|
89.94
|
||||||||||||
Customer monthly churn
|
1.75
|
%
|
1.51
|
%
|
1.76
|
%
|
2.12
|
%
|
1.77
|
%
|
2.16
|
%
|
||||||||||||
Commercial customer metrics
|
||||||||||||||||||||||||
Customers (in thousands)
|
315
|
N/A
|
N/A
|
381
|
N/A
|
N/A
|
||||||||||||||||||
Broadband subscriber metrics
|
||||||||||||||||||||||||
Broadband subscribers (in thousands)
|
3,119
|
-
|
3,119
|
3,555
|
305
|
3,250
|
||||||||||||||||||
Net subscriber additions (losses)
|
(394
|
)
|
(302
|
)
|
(92
|
)
|
(180
|
)
|
(13
|
)
|
(167
|
)
|
||||||||||||
Video (excl. DISH) subscriber metrics
|
||||||||||||||||||||||||
Video subscribers - in thousands)
|
518
|
-
|
518
|
698
|
31
|
667
|
||||||||||||||||||
Net subscriber additions (losses)
|
(142
|
)
|
(29
|
)
|
(113
|
)
|
(140
|
)
|
(7
|
)
|
(133
|
)
|
||||||||||||
DISH subscriber metrics
|
||||||||||||||||||||||||
DISH subscribers (in thousands)
|
139
|
-
|
139
|
181
|
18
|
163
|
||||||||||||||||||
Net subscriber additions (losses)
|
(34
|
)
|
(17
|
)
|
(17
|
)
|
(24
|
)
|
(2
|
)
|
(22
|
)
|
||||||||||||
Employees
|
16,302
|
-
|
16,302
|
19,132
|
950
|
18,182
|
SCHEDULE F
Frontier Communications Corporation
(Debtor-In-Possession)
Reconciliation of Non-GAAP Financial Measures for Remaining Properties (Excluding Northwest Operations)
For the three months ended
|
||||||||||||||||||||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
||||||||||||||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (1)
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (2)
|
Remaining
Properties
|
|||||||||||||||||||||||||||
Net income (loss)
|
$
|
15
|
|
$
|
-
|
$
|
15
|
|
$
|
(181
|
)
|
$
|
29
|
$
|
(210
|
)
|
$
|
(345
|
)
|
$
|
99
|
$
|
(444
|
)
|
||||||||||||
Add back (subtract):
|
||||||||||||||||||||||||||||||||||||
Income tax expense (benefit)
|
(11
|
)
|
-
|
(11
|
)
|
(57
|
)
|
-
|
(57
|
)
|
(21
|
)
|
-
|
(21
|
)
|
|||||||||||||||||||||
Interest expense
|
121
|
-
|
121
|
160
|
-
|
160
|
382
|
-
|
382
|
|||||||||||||||||||||||||||
Investment and other (income) loss, net
|
14
|
-
|
14
|
20
|
-
|
20
|
10
|
-
|
10
|
|||||||||||||||||||||||||||
Pension settlement costs
|
-
|
-
|
-
|
56
|
-
|
56
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Loss on extinguishment of debt
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Reorganization items, net
|
131
|
-
|
131
|
142
|
-
|
142
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Operating income (loss)
|
270
|
-
|
270
|
140
|
29
|
111
|
26
|
99
|
(73
|
)
|
||||||||||||||||||||||||||
Depreciation and amortization
|
392
|
-
|
392
|
397
|
-
|
397
|
422
|
-
|
422
|
|||||||||||||||||||||||||||
EBITDA
|
662
|
-
|
662
|
537
|
29
|
508
|
448
|
99
|
349
|
|||||||||||||||||||||||||||
Add back:
|
||||||||||||||||||||||||||||||||||||
Pension/OPEB expense
|
24
|
-
|
24
|
23
|
-
|
23
|
20
|
-
|
20
|
|||||||||||||||||||||||||||
Restructuring costs and other charges
|
3
|
-
|
3
|
36
|
-
|
36
|
27
|
-
|
27
|
|||||||||||||||||||||||||||
Stock-based compensation expense
|
1
|
-
|
1
|
1
|
-
|
1
|
3
|
-
|
3
|
|||||||||||||||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
-
|
(1
|
)
|
-
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
276
|
-
|
276
|
|||||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
-
|
-
|
-
|
136
|
-
|
136
|
30
|
-
|
30
|
|||||||||||||||||||||||||||
Adjusted EBITDA
|
$
|
690
|
$
|
-
|
$
|
690
|
$
|
732
|
$
|
29
|
$
|
703
|
$
|
804
|
$
|
99
|
$
|
705
|
||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Free Cash Flow
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Net cash provided from operating activities
|
$
|
542
|
N/A
|
N/A
|
$
|
473
|
N/A
|
N/A
|
$
|
246
|
N/A
|
N/A
|
||||||||||||||||||||||||
Capital expenditures
|
(314
|
)
|
N/A
|
N/A
|
(225
|
)
|
N/A
|
N/A
|
(318
|
)
|
N/A
|
N/A
|
||||||||||||||||||||||||
Operating free cash flow
|
$
|
228
|
N/A
|
N/A
|
$
|
248
|
N/A
|
N/A
|
$
|
(72
|
)
|
N/A
|
N/A
|
For the nine months ended
|
|||||||||||||||||||||||||
September 30, 2020
|
September 30, 2019
|
||||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier
|
Northwest
Ops (1)
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (2)
|
Remaining
Properties
|
|||||||||||||||||||
Net income (loss) |
$
|
(352
|
)
|
$
|
126
|
|
$
|
(478
|
)
|
$
|
(5,749
|
)
|
$
|
240
|
|
$ |
(5,989
|
) |
|||||||
Add back (subtract): |
|||||||||||||||||||||||||
Income tax benefit
|
(91
|
)
|
-
|
(91
|
)
|
(537
|
)
|
-
|
(537
|
)
|
|||||||||||||||
Interest expense
|
664
|
-
|
664
|
1,144
|
-
|
1,144
|
|||||||||||||||||||
Investment and other loss, net
|
29
|
-
|
29
|
28
|
-
|
28
|
|||||||||||||||||||
Pension settlement costs
|
159
|
-
|
159
|
-
|
-
|
-
|
|||||||||||||||||||
Loss on extinguishment of debt
|
-
|
-
|
-
|
20
|
-
|
20
|
|||||||||||||||||||
Reorganization items, net
|
273
|
-
|
273
|
-
|
-
|
-
|
|||||||||||||||||||
Operating income (loss)
|
682
|
126
|
556
|
(5,094
|
)
|
240
|
(5,334
|
)
|
|||||||||||||||||
Depreciation and amortization
|
1,204
|
-
|
1,204
|
1,360
|
60
|
1,300
|
|||||||||||||||||||
EBITDA
|
1,886
|
126
|
1,760
|
(3,734
|
)
|
300
|
(4,034
|
)
|
|||||||||||||||||
Add back:
|
|||||||||||||||||||||||||
Pension/OPEB expense
|
70
|
-
|
70
|
59
|
-
|
59
|
|||||||||||||||||||
Restructuring costs and other charges
|
87
|
-
|
87
|
86
|
2
|
84
|
|||||||||||||||||||
Stock-based compensation expense
|
3
|
-
|
3
|
10
|
-
|
10
|
|||||||||||||||||||
Storm-related insurance proceeds
|
(1
|
)
|
-
|
(1
|
)
|
(1
|
)
|
-
|
(1
|
)
|
|||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
5,725
|
-
|
5,725
|
|||||||||||||||||||
Loss on disposal of Northwest Operations
|
160
|
-
|
160
|
414
|
-
|
414
|
|||||||||||||||||||
Adjusted EBITDA
|
$
|
2,205
|
$
|
126
|
$
|
2,079
|
$
|
2,559
|
$
|
302
|
$
|
2,257
|
|||||||||||||
Free Cash Flow
|
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
Net cash provided from operating activities
|
$
|
1,492
|
N/A
|
N/A
|
$
|
1,103
|
N/A
|
N/A
|
|||||||||||||||||
Capital expenditures
|
(825
|
)
|
N/A
|
N/A
|
(898
|
)
|
N/A
|
N/A
|
|||||||||||||||||
Operating free cash flow
|
$
|
667
|
N/A
|
N/A
|
$
|
205
|
N/A
|
N/A
|
(1) Amounts represent the
financial results of our Northwest Operations for the one month and 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 nine months ended September 30, 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 (Excluding Northwest Operations)
For the three months ended
|
||||||||||||||||||||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
||||||||||||||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier
|
Northwest
Ops
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (1)
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (2)
|
Remaining
Properties
|
|||||||||||||||||||||||||||
Adjusted Operating Expenses
|
||||||||||||||||||||||||||||||||||||
Total operating expenses (3)
|
$
|
1,456
|
$
|
-
|
$
|
1,456
|
$
|
1,661
|
$
|
18
|
$
|
1,643
|
$
|
1,971
|
$
|
49
|
$
|
1,922
|
||||||||||||||||||
Subtract:
|
||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
392
|
-
|
392
|
397
|
-
|
397
|
422
|
-
|
422
|
|||||||||||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
276
|
-
|
276
|
|||||||||||||||||||||||||||
Loss on disposal of Northwest Operations
|
-
|
-
|
-
|
136
|
-
|
136
|
30
|
-
|
30
|
|||||||||||||||||||||||||||
Pension/OPEB expense
|
24
|
-
|
24
|
23
|
-
|
23
|
20
|
-
|
20
|
|||||||||||||||||||||||||||
Restructuring costs and other charges
|
3
|
-
|
3
|
36
|
-
|
36
|
27
|
-
|
27
|
|||||||||||||||||||||||||||
Stock-based compensation expense
|
1
|
-
|
1
|
1
|
-
|
1
|
3
|
-
|
3
|
|||||||||||||||||||||||||||
Storm-related insurance proceeds
|
-
|
-
|
-
|
(1
|
)
|
-
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Adjusted operating expenses
|
$
|
1,036
|
$
|
-
|
$
|
1,036
|
$
|
1,069
|
$
|
18
|
$
|
1,051
|
$
|
1,193
|
$
|
49
|
$
|
1,144
|
For the nine months ended
|
||||||||||||||||||||||||
September 30, 2020
|
September 30, 2019
|
|||||||||||||||||||||||
($ in millions)
|
Consolidated
Frontier
|
Northwest
Ops (1)
|
Remaining
Properties
|
Consolidated
Frontier
|
Northwest
Ops (2)
|
Remaining
Properties
|
||||||||||||||||||
Adjusted Operating Expenses
|
||||||||||||||||||||||||
Total operating expenses (3)
|
$
|
4,778
|
$
|
66
|
$
|
4,712
|
$
|
11,259
|
$
|
215
|
$
|
11,044
|
||||||||||||
Subtract:
|
||||||||||||||||||||||||
Depreciation and amortization
|
1,204
|
-
|
1,204
|
1,360
|
60
|
1,300
|
||||||||||||||||||
Goodwill impairment
|
-
|
-
|
-
|
5,725
|
-
|
5,725
|
||||||||||||||||||
Loss on disposal of Northwest Operations
|
160
|
-
|
160
|
414
|
-
|
414
|
||||||||||||||||||
Pension/OPEB expense
|
70
|
-
|
70
|
59
|
-
|
59
|
||||||||||||||||||
Restructuring costs and other charges
|
87
|
-
|
87
|
86
|
2
|
84
|
||||||||||||||||||
Stock-based compensation expense
|
3
|
-
|
3
|
10
|
-
|
10
|
||||||||||||||||||
Storm-related insurance proceeds
|
(1
|
)
|
-
|
(1
|
)
|
(1
|
)
|
-
|
(1
|
)
|
||||||||||||||
Adjusted operating expenses
|
$
|
3,255
|
$
|
66
|
$
|
3,189
|
$
|
3,606
|
$
|
153
|
$
|
3,453
|
(1) Amounts represent the financial results of our Northwest Operations for the one month and four month period ended April 30, 2020.
(2) Amounts represent the financial results of our Northwest Operations for the three and nine months ended September 30, 2019.
(3) Operating expenses for Northwest Ops do not include allocated expenses which are included in operating expenses for our Remaining
Properties.