Core Insights - Frontier Communications reported $1.49 billion in revenue for Q3 2024, a year-over-year increase of 3.7% [1] - The company experienced an EPS of -$0.33, compared to $0.05 a year ago, indicating a significant decline [1] - Revenue exceeded the Zacks Consensus Estimate of $1.45 billion, resulting in a surprise of +2.35% [1] - The EPS surprise was -50.00%, with the consensus EPS estimate being -$0.22 [1] Revenue and Customer Metrics - Broadband customers totaled 3.06 million, slightly above the estimated 3.04 million [3] - Broadband Net Adds for Business - Fiber were 4 thousand, below the average estimate of 4.39 thousand [3] - Consumer Broadband Customers - Fiber reached 2.16 million, exceeding the estimate of 2.14 million [3] - Business Broadband Customers - Fiber were 138 thousand, close to the estimate of 138.39 thousand [3] Revenue Breakdown - Revenue from contracts with customers was $1.47 billion, surpassing the estimate of $1.44 billion, reflecting a +3.5% year-over-year change [3] - Subsidy and other revenue amounted to $18 million, exceeding the estimate of $14.67 million, with a year-over-year change of +20% [3] - Video services revenue was $83 million, slightly below the estimate of $83.85 million, showing a -20.2% change year-over-year [3] - Fiber-Consumer revenue was $537 million, close to the estimate of $539.12 million, with a +12.1% year-over-year change [3] - Other revenue was $83 million, slightly below the estimate of $83.41 million, reflecting a +2.5% year-over-year change [3] - Revenue from contracts with customers - Fiber was $867 million, exceeding the estimate of $821.31 million, representing a +14.1% year-over-year change [3] - Revenue from contracts with customers - Copper was $604 million, slightly above the estimate of $601.60 million, with a year-over-year change of -8.6% [3] - Fiber - Business and Wholesale revenue reached $330 million, surpassing the estimate of $282.19 million, indicating a +17.4% year-over-year change [3] Stock Performance - Shares of Frontier Communications returned +0.3% over the past month, compared to the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Frontier Communications reported a quarterly loss of $0.33 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.22, and compared to earnings of $0.05 per share a year ago, indicating an earnings surprise of -50% [1] - The company posted revenues of $1.49 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.35%, and this represents an increase from year-ago revenues of $1.44 billion [2] - Frontier Communications shares have increased approximately 39.7% since the beginning of the year, outperforming the S&P 500's gain of 19.8% [3] Group 2 - The earnings outlook for Frontier Communications is mixed, with the current consensus EPS estimate for the coming quarter at -$0.12 on revenues of $1.45 billion, and -$0.79 on revenues of $5.85 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Communication - Network Software sector is currently in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Frontier Communications has achieved consensus revenue estimates three times over the last four quarters, indicating some level of operational consistency [2]

Financial Performance - Revenue of $1.49 billion, an increase of 3.7% year-over-year, driven by fiber-based product growth[2] - Adjusted EBITDA of $549 million, up 4.4% year-over-year, despite higher customer acquisition costs[2] - Operating income for the three months ended September 30, 2024, was $86 million, down from $114 million in the same period last year, representing a 24.6% decrease[24] - Net loss for the three months ended September 30, 2024, was $(82) million, compared to a net income of $11 million in the same period last year[24] - For the nine months ended September 30, 2024, total revenue was $4,431 million, a 2.5% increase from $4,325 million in the same period last year[25] - Basic net loss per common share for the three months ended September 30, 2024, was $(0.33), compared to earnings of $0.05 in the same period last year[24] - Interest expense for the three months ended September 30, 2024, was $(203) million, an increase from $(170) million in the same period last year[24] - The company reported a net loss of $(204) million for the nine months ended September 30, 2024, compared to a net income of $12 million for the same period last year[40] Customer Growth and Metrics - Fiber broadband customer growth of 19.3% year-over-year with 108,000 new customers added[2] - Broadband customers reached 3,057 thousand as of September 30, 2024, up from 2,913 thousand a year ago, representing a year-over-year increase of 4.9%[32] - Net customer additions for broadband were 47 thousand in Q3 2024, compared to 15 thousand in Q3 2023, showing a significant improvement[32] - Fiber broadband customers increased to 2,157 thousand, compared to 2,053 thousand in the previous quarter, reflecting a growth of 5.1%[42] - The total number of broadband customers reached 2,823 thousand, compared to 2,774 thousand in the previous quarter, indicating a growth of 1.8%[42] Revenue Breakdown - Consumer fiber broadband revenue increased by 21.8% year-over-year to $414 million[3] - Business and Wholesale revenue rose by 7.6% year-over-year to $682 million[4] - Revenue from Data and Internet services for the three months ended September 30, 2024, was $1,004 million, a 12.2% increase from $895 million in the same period last year[27] - Revenue from Fiber services for the three months ended September 30, 2024, was $867 million, up from $760 million in the same period last year, indicating a 14.1% growth[29] - Total broadband revenue for the company reached $595 million for the quarter ended September 30, 2024, up from $583 million in the previous quarter[42] Capital Expenditures and Cash Flow - Total cash capital expenditures amounted to $699 million[2] - Capital expenditures for the three months ended September 30, 2024, were $699 million, an increase from $671 million in the same period last year[24] - Net cash provided from operating activities was $618 million for Q3 2024, compared to $383 million in Q3 2023, marking a 61.5% increase[37] - Net cash provided from operating activities was $1,327 million, an increase from $1,048 million year-over-year[39] - Net cash used by investing activities was $691 million in Q3 2024, a decrease from $1,419 million in Q3 2023, indicating improved cash management[37] Debt and Liquidity - Frontier had total liquidity of $2.0 billion, including a cash balance of approximately $1.3 billion[7] - Long-term debt stood at $11,556 million as of September 30, 2024, compared to $11,246 million at the end of 2023, indicating an increase of 2.8%[34] - The net leverage ratio was reported at 4.6x, calculated using adjusted EBITDA of $2,205 million over net debt of $10,246 million[35] - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,480 million, up from $1,054 million a year ago, representing a 40.4% increase[38] Acquisition and Future Outlook - Verizon is set to acquire Frontier at $38.50 per share, with the transaction expected to close by Q1 2026[8][9] Operational Metrics - Total operating expenses for the three months ended September 30, 2024, were $1,403 million, up from $1,322 million in the same period last year, reflecting a 6.1% increase[24] - Average monthly consumer revenue per customer decreased slightly to $83.12 from $83.99 in Q3 2023, reflecting a 1.0% decline[32] - Customer monthly churn increased to 1.80% in Q3 2024 from 1.70% in Q3 2023, indicating a rise in customer turnover[32] - Total fiber penetration stood at 30.2% as of September 30, 2024, slightly down from 30.4% in the previous quarter[42] - Estimated broadband fiber penetration increased to 45.7% from 45.3% in the previous quarter[42]

Customer Growth and Revenue - For the nine months ended September 30, 2024, the company added approximately 279,000 consumer fiber broadband customers, compared to 222,000 for the same period in 2023, representing a 25.6% increase[173]. - The average monthly consumer fiber broadband ARPU increased by $2.31, or 4%, to $65.41 for the nine months ended September 30, 2024, compared to $63.10 in 2023[175]. - Total revenue for the nine months ended September 30, 2024, was $4,431 million, an increase of $106 million, or 2%, from $4,325 million in 2023[196]. - Consumer fiber broadband revenues improved by 23% for the nine months ended September 30, 2024, driven by higher ARPU and increased net customer additions[192]. - The company lost approximately 156,000 consumer copper broadband customers for the nine months ended September 30, 2024, compared to a loss of 173,000 in 2023, indicating improved retention[177]. Operating Expenses and Cash Flow - Total operating expenses increased by $211 million, or 5%, to $4,164 million for the nine months ended September 30, 2024, compared to the prior year[204]. - Cash flows provided from operating activities increased by $279 million to $1,327 million for the nine months ended September 30, 2024, compared to the prior year[229]. Capital Expenditures and Financing - Capital expenditures decreased to $1,991 million for the nine months ended September 30, 2024, from $2,882 million in the prior year[232]. - On May 22, 2024, the company amended its credit agreement, increasing the aggregate amount of certain additional obligations from $2,500 million to $5,500 million[238]. - On July 1, 2024, the company issued $750 million in secured fiber network revenue term notes with a weighted average yield of approximately 7.4%[240]. - As of September 30, 2024, vendor financing liabilities were $56 million, and capital expenditures for the nine months ended September 30, 2024, were $1,991 million, totaling $2,406 million when including vendor financing[236]. Regulatory and Compliance - The company is subject to regulatory developments that may impact its operational costs and obligations, including potential changes in broadband classification and universal service fund contributions[260][261]. - The company operates under franchises that require payment of franchise fees and compliance with specific customer service standards[264]. - The company believes it is in substantial compliance with applicable environmental laws and regulations, which could impose liability for cleanup costs at contaminated sites[266]. - The company is subject to various federal and state privacy regulations that could lead to increased compliance costs and uncertainty regarding consumer data usage[262]. Debt and Interest - The fair value of the company's debt was estimated at approximately $11.8 billion as of September 30, 2024, with a weighted average borrowing rate of 6.997% and a maturity of about 4.8 years[274]. - Interest expense increased by $33 million, or 19%, to $203 million for the three months ended September 30, 2024, due to a higher debt balance[221]. - A 100 basis points increase in the SOFR would result in approximately $10 million of additional interest expense for the company, assuming the SOFR rate exceeds the SOFR floor[273]. Pension and Tax - The company’s pension plan assets increased by $198 million from $2,268 million at December 31, 2023, to $2,466 million at September 30, 2024, primarily due to market value changes of $235 million and contributions of $108 million[278]. - The discount rate for the pension benefit obligation was 5.20% as of December 31, 2023, and decreased to 5.00% as of September 30, 2024[275]. - The effective tax rate for the nine months ended September 30, 2024, was 6.2%, compared to 9.7% for the same period in 2023[223]. Financial Position and Compliance - Working capital deficit increased to $567 million as of September 30, 2024, from a surplus of $506 million at December 31, 2023[228]. - As of September 30, 2024, the company was in compliance with all covenants under its existing indentures and credit agreements[252]. - The financial maintenance covenant leverage ratio is set at a maximum of 5.25:1.00, stepping down to 4.75:1.00 starting March 31, 2027[244]. - The company has no off-balance sheet arrangements that would materially affect its financial statements[254]. - The company has not made any material changes to its critical accounting policies and estimates since its last annual report[268].

MONSEY, N.Y., Sept. 05, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed sale of Frontier Communications Parent, Inc. (Nasdaq: FYBR) ("Frontier") to Verizon Communications Inc. ("Verizon") for $38.50 per share in cash. Wohl & Fruchter's investigation includes whether the sales price agreed upon is fair to Frontier shareholders, and whether all material information regarding the transaction has been fully disclosed. In particular, when announcing Q2 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to__________ Commission file number: 001-11001 FRONTIER COMMUNICATIONS PARENT, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | |- ...

Financial Data and Key Metrics - Q2 revenue was $1.48 billion, up 2% YoY, marking the second consecutive quarter of revenue growth and the fastest organic growth in over a decade [4][17] - Adjusted EBITDA grew by 5% to $560 million, with EBITDA margins expanding [4][17] - Net loss of $123 million, primarily due to a non-cash pension remeasurement and a $25 million one-time legal settlement [17] - Net cash from operations was $374 million, bringing the trailing 12-month total to $1.4 billion [17] - Fiber broadband revenue grew by 21%, offsetting declines in legacy products [19] Business Line Data and Key Metrics - Fiber broadband customers grew by 19% YoY, with a record 92,000 net adds in Q2 [6][17] - Fiber penetration in base markets reached 45.3%, up 190 basis points YoY [17] - ARPU grew by 3.5% YoY, driven by faster speed tiers, annual price adjustments, and value-added services [18] - Over 60% of new customers chose speeds of 1 gig or faster, and over 50% purchased at least one value-added service [18] - Consumer revenue grew for the fourth consecutive quarter, while business and wholesale revenue grew 4% [19] Market Data and Key Metrics - The company added a record 388,000 fiber passings in Q2, bringing the total to over 7 million passings [5][16] - Fiber securitization raised $750 million, with a weighted average yield of 7.4%, reducing the cost of capital [21][22] - The company expects to achieve 1.3 million fiber passings in 2024 [16] Company Strategy and Industry Competition - The company's strategy focuses on four pillars: building fiber, selling fiber, improving customer service, and increasing operational efficiency [5] - Fiber is positioned as a superior product compared to legacy cable, with a Net Promoter Score (NPS) six times higher than the closest cable competitor [11] - The company has achieved $580 million in cost savings since 2021, driven by operational efficiency and customer service improvements [16][79] - The company is the largest pureplay fiber provider in the U.S., with nearly twice as many passings as the next closest competitor [5] Management Commentary on Operating Environment and Future Outlook - Management is confident in the company's ability to achieve sustainable growth, with fiber revenue growth and disciplined cost management driving EBITDA growth [12][13] - The company expects to maintain strong operational momentum, hit revenue growth milestones, and accelerate EBITDA growth in 2024 [13] - Management highlighted the successful trial of 100-gigabit speeds over a single strand of fiber, showcasing the company's technological leadership [15] Other Important Information - The company completed its second fiber securitization, raising $750 million and extending the maturity of its term loan to 2031 [16][21] - Capital investment declined to $678 million in Q2, with expectations of flat investment in Q3 and Q4 [20] - The company raised the low end of its 2024 EBITDA guidance to $2.22 billion to $2.25 billion, representing 5% growth at the midpoint [23] Q&A Session Summary Question: Impact of Competitors' Fiber Buildouts on Frontier's Plans - Management is encouraged by industry interest in fiber but does not see it materially impacting Frontier's build plans, as the company has scaled its build to align with sales and service capabilities [25][26] Question: Broadband Ads Strength and ARPU Growth - Broadband ads were strong, with a record 92,000 net adds in Q2, driven by expanding fiber footprint and strong sales momentum [28][29] - ARPU growth decelerated to 3.5% YoY in Q2, with expectations of flat sequential growth in Q3 due to ACP transition plans, followed by a pickup in Q4 [29][30] Question: Gross Ads Growth and Cost to Acquire - Gross ads grew by nearly 30% YoY, driven by a better product and improved sales channel optimization [38][40] - The company expects to maintain cost to connect within the $600 to $800 range, with self-install reducing costs over time [43][44] Question: Consumer Fiber ARPU and EBITDA Guidance - Consumer fiber ARPU is expected to be flat sequentially in Q3, with growth resuming in Q4 [47] - EBITDA guidance was raised, with 5% growth expected in the second half, driven by strong operational momentum [47][48] Question: Strategic Review and Capital Allocation - The strategic review is ongoing, with options including joint ventures, divestitures, and mergers, as the company approaches its goal of 10 million fiber passings [58][59] - Capital allocation focuses on reducing the cost of capital, maintaining liquidity, and extending maturities [64][65] Question: SG&A Expense and Video Business - SG&A expense was elevated due to growth-related marketing and commissions, but cost savings in other areas improved margins [67][68] - The video business continues to decline, with the company focusing on over-the-top partnerships like YouTube TV [68][69] Question: Fiber ARPU and Low-End Macro Trends - Fiber ARPU is bifurcated, with over 60% of customers taking gig-plus speeds, while ACP transition plans impact lower-end ARPU [73][74] - No softening is observed at the low end of the consumer market, with strong demand for fiber products [72] Question: Fixed Mobile Convergence and Customer Care Improvements - The company is prepared to launch a wireless offer but sees no immediate need, as fiber growth remains the priority [78][79] - Customer service improvements have reduced calls by 50% and driven significant cost savings [79][80] Question: Vintage Penetration Disclosure - The company simplified its penetration reporting to align with industry peers and better reflect how the business is managed [81][82]

For the quarter ended June 2024, Frontier Communications (FYBR) reported revenue of $1.48 billion, up 2.1% over the same period last year. EPS came in at -$0.49, compared to -$0.01 in the year-ago quarter. The reported revenue represents a surprise of +1.40% over the Zacks Consensus Estimate of $1.46 billion. With the consensus EPS estimate being -$0.11, the EPS surprise was -345.45%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Frontier Communications (FYBR) came out with a quarterly loss of $0.49 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -345.45%. A quarter ago, it was expected that this telecommunications company would post a loss of $0.01 per share when it actually produced break-even earnings, delivering a surprise of 100%. Over the last four q ...

FRONTIER SECOND QUARTER 2024 RESULTS AUGUST 2, 2024 © Frontier Communications. FRONTIER Safe Harbor Statement Forward-Looking Statements This presentation contains "forward-looking statements" related to future events, including our 2024 outlook and guidance. Forward-looking statements address our expectations or beliefs concerning future events, including, without limitation, future operating and financial performance, our ability to implement our growth strategy, our ability to comply with the covenants i ...