Is Frontier Communication's Cup Half Full Or Three-Quarters Empty? [telecom]

open original image

By Bill Zettler

Summary

• Frontier eliminated its dividend adding 0 million/year in cash flow.

• Frontier's Convertible Preferred converts in June adding another 4 million/yr. to cash flow.

• Beyond dividend savings 2018 free cash flow is projected at 0 million.

• Further cost cuts of 0 million expected by end of the second quarter, 2018.

• Using these funds to buy back debt could produce a profit by the end of 2018.

Frontier Communications (NYSE:FTR) recently announced the elimination of its common share dividend and said it was determined to use that money to pay down FTR's huge debt burden.