Verizon Reports Continued Strong Quarterly Results - Aug 1, 2006 06:55 AM (PR Newswire)
Maintaining industry-leading growth in wireless and broadband markets, Verizon Communications Inc. (NYSE:VZ) today reported continued strong financial and operational results for the second quarter 2006.
Verizon reported quarterly earnings of $1.6 billion, or 55 cents per diluted share, compared with $2.1 billion, or 75 cents per share, in the second quarter 2005.
Reported earnings in the second quarter 2006 reflect 9 cents per share in special items for severance and related pension and benefits charges, and for employee relocations and merger integration costs. Reported earnings in the second quarter 2005 had included a net of 12 cents per share in non-recurring gains, principally from the sale of Verizon's wireline and directory operations in Hawaii.
Before special items (non-GAAP), Verizon's earnings were 64 cents per share in the second quarter 2006, compared with 63 cents in the second quarter 2005.
For the full year, Verizon has reiterated guidance of 2006 EPS similar to 2005 earnings of $2.56 per share before special items.
Consolidated operating revenues in the second quarter 2006 were $22.7 billion, a 25.6 percent increase compared with the second quarter2005. Consolidated total operating expenses were $19.1 billion, a 35.7 percent increase compared with the second quarter 2005. Reported results in the second quarter 2006 include revenues and expenses from the former MCI, Inc., which merged with Verizon on Jan. 6, 2006.
On a pro-forma (non-GAAP) basis, comparing second quarter 2006 with second quarter 2005, adjusted operating revenues increased 2.3 percent, adjusted cash expenses increased 1.0 percent and adjusted operating income increased 12.4 percent. Adjusted operating income margins, including the effects of net pension and OPEB (other post-retirement benefits), would have been 17.7 percent in second quarter 2006, compared with 16.1 percent in second quarter 2005. Pro-forma adjusted information presents the combined operating results of Verizon and the former MCI on a comparable basis.