RNS Number:9674H
Verizon Communications
28 January 2005


                                UNITED STATES 
                     SECURITIES AND EXCHANGE COMMISSION 
                           Washington, D.C. 20549 

                           ----------------------

                                  FORM 8-K 

                           ----------------------
  
                               CURRENT REPORT 

  
     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 

                     Date of Report: January 27, 2005 
                     (Date of earliest event reported) 
                    -----------------------------------

                        VERIZON COMMUNICATIONS INC. 
             (Exact name of registrant as specified in its charter) 

                     -----------------------------------
  

          Delaware                    1-8606                    23-2259884  
(State or other jurisdiction  (Commission File Number)        (I.R.S. Employer 
      of incorporation)                                      Identification No.) 

          1095 Avenue of the Americas 
              New York, New York                           10036  
   (Address of principal executive offices)              (Zip Code)  

  
       Registrant's telephone number, including area code: (212) 395-2121 

                               Not applicable 
           (Former name or former address, if changed since last report) 

           -------------------------------------------------------------

Check the appropriate box below if the Form 8-K filing is intended to 
simultaneously satisfy the filing obligation of the registrant under any of the 
following provisions: 
     
(  ) 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 8.01 Other Events. 

On a January 27, 2005 conference call with financial analysts and investors to
discuss its fourth quarter and full year 2004 results, Verizon Communications
Inc. provided certain information pertaining to its outlook for 2005. Verizon
indicated that it expects capital expenditures to increase approximately 10
percent over 2004 capital spending levels, driven by investments for wireless
and fiber-optic broadband growth initiatives. Verizon also noted that Verizon
Wireless's operating income before depreciation and amortization (EBITDA)
margin, a non-GAAP measure, had been affected in the fourth quarter by expenses
attributable to Verizon Wireless's employee long-term incentive plan, which have
increased as the value of Verizon Wireless has increased. Verizon indicated that
it expects Verizon Wireless's EBITDA margin in 2005 to be consistent with
historical performance. 

NOTE: This report contains statements about expected future events and financial
results that are forward-looking and subject to risks and uncertainties. For
those statements, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
The following important factors could affect future results and could cause
those results to differ materially from those expressed in the forward-looking
statements: materially adverse changes in economic and industry conditions and
labor matters, including workforce levels and labor negotiations, and any
resulting financial and/or operational impact, in the markets served by us or by
companies in which we have substantial investments; material changes in
available technology; technology substitution; an adverse change in the ratings
afforded our debt securities by nationally accredited ratings organizations; the
final results of federal and state regulatory proceedings concerning our
provision of retail and wholesale services and judicial review of those results;
the effects of competition in our markets; the timing, scope and financial
impacts of our deployment of fiber-to-the-premises broadband technology; the
ability of Verizon Wireless to continue to obtain sufficient spectrum resources;
and changes in our accounting assumptions that regulatory agencies, including
the SEC, may require or that result from changes in the accounting rules or
their application, which could result in an impact on earnings. 

Non-GAAP Measures 

Verizon's financial information is prepared in conformity with generally
accepted accounting principles (GAAP) and also contains non-GAAP financial
information. The non-GAAP financial information may be determined or calculated
differently by other companies. 

Management believes that Verizon Wireless's EBITDA and EBITDA margin, non-GAAP
financial measures, are useful to investors and other users of our financial
information in evaluating operating financial performance. Verizon Wireless's
EBITDA is determined by adding-back depreciation and amortization to operating
income and the Verizon Wireless EBITDA margin is calculated by dividing Verizon
Wireless's EBITDA by Verizon Wireless's service revenues. Verizon Wireless's
EBITDA and EBITDA margin are non-GAAP operating performance measures that are
used internally to evaluate current operating expense efficiency and operating
profitability on a more variable cost basis by excluding the depreciation and
amortization expenses related primarily to capital expenditures and acquisitions
(particularly customer base amortization) that occurred in prior years. In
addition, Verizon management uses this information to evaluate operating
performance in relation to Verizon Wireless's competitors. The Verizon Wireless
EBITDA margin utilizes service revenues rather than total revenues. Service
revenues exclude primarily equipment revenues (as well as other non-service
revenues) in order to capture the impact of providing service to the wireless
customer base on an ongoing basis. Verizon Wireless's EBITDA margin is presented
in financial reports along with Verizon Wireless's operating income margin so as
not to imply more emphasis should be placed on it than the corresponding GAAP
measure. Management believes this presentation assists readers in preparing
comparisons of this type of performance measure (operating profitability) using
the GAAP measure as well as the measure segment management evaluates segment
results and performs comparisons to other wireless carriers. 

It is management's intent to provide non-GAAP financial information to enhance
understanding of Verizon's GAAP consolidated financial statements and should be
considered by the reader in addition to, but not instead of, the financial
statements prepared in accordance with GAAP. 

--------------------------------------------------------------------------------

                                   SIGNATURE 

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized. 

                                                  Verizon Communications Inc.  
                                                  ---------------------------
                                                         (Registrant)  
    
Date:     January 28, 2005 
                                         /s/ David H. Benson 

                                         ------------------------------------
                                         David H. Benson  
                                         Senior Vice President and Controller  



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