http://www.morningstar.com/earnings/54518922-verizon-communications-inc-vz-q2-2013.aspx

Verizon Communications Inc VZ
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/18/2013

Operator: Good morning, and welcome to the Verizon Second Quarter 2013 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode, and the floor will be opened for questions following the presentation. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

It is now my pleasure to turn the call over to your host, Mr. Michael Stefanski, Senior Vice President, Investor Relations.

Michael T. Stefanski - SVP, Treasurer and IR: Thanks, Brad. Good morning, and welcome to our second quarter 2013 earnings conference call. This is Mike Stefanski, and I'm here with our Chief Financial Officer, Fran Shammo. Thank you for joining us this morning.

Before we get started, let me remind you that our earnings release, financial and operating information, the investor quarterly, and the presentation slides are available on our Investor Relations website. Replays and a transcript of this call will be available on our website later today.

I would also like to draw your attention to our Safe Harbor statement. Information in this presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussion of factors that may affect future results is contained in Verizon's filings with the SEC, which are also available on our website.

This presentation contains certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are also available on our website.

Before Fran takes your through the details, I'd to make you aware of a non-operational item included in the quarterly results.

For the second quarter, we reported earnings of $0.78 per share on a GAAP basis. These results include $147 million after-tax or $0.05 per share for the favorable effect of an interim actuarial remeasurement associated with one of our pension plans due to settlement accounting.

The non-cash credits were due primarily to an increase in the discount rate assumption used to determine our current pension liability. On an adjusted basis EPS was $0.73 compared with $0.64 a year ago. Our discussion of consolidated results in growth rates in this presentation, exclude the effect of the non-operational gain.

In addition, the quarterly growth rates disclosed in this presentation are on a year-over-year basis, unless otherwise noted as sequential.

With that, I will now turn the call over to Fran.

Francis J. Shammo - EVP and CFO: Thanks Mike. Good morning, everyone. Our strategic investments in 4G, LTE, FiOS, global IP and cloud services continue to drive strong operating performance. We are executing well in these key growth areas. Overall consistent top line growth along with a strong focus on cost efficiency and profitability resulted in double-digit growth in operating income and earnings per share in the second quarter. In fact, we have posted double-digit earnings growth in five of the last six quarters.

Second quarter adjusted EPS was $0.73, up 14.1%. Year-to-date adjusted earnings per share were $1.41, representing 14.6% growth. As you know, our strategic focus is on building networks and platform as the foundation for innovation and growth.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.