Verizon Communications Inc. (VZ) Q3 2022 Earnings Call Transcript

Verizon Communications Inc. (NYSE:VZ) Q3 2022 Earnings Conference Call October 21, 2022 8:30 AM ET

Company Participants

Brady Connor - Senior Vice President, Investor Relations

Hans Vestberg - Chairman and Chief Executive Officer

Matt Ellis - Chief Financial Officer

Conference Call Participants

John Hodulik - UBS

Brett Feldman - Goldman Sachs

Simon Flannery - Morgan Stanley

Phil Cusick - JPMorgan

David Barden - Bank of America

Michael Rollins - Citigroup

Tim Horan - Oppenheimer

Craig Moffett - MoffettNathanson

Frank Louthan - Raymond James

Operator

Good morning and welcome to the Verizon Third Quarter 2022 Earnings Conference Call. [Operator Instructions] 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. Brady Connor, Senior Vice President, Investor Relations.

Brady Connor

Thanks, Brad. Good morning, and welcome to our third quarter earnings conference call. This is Brady Connor and I am here with our Chairman and Chief Executive Officer, Hans Vestberg; and Matt Ellis, our Chief Financial Officer. As a reminder, our earnings release, financial and operating information and the presentation slides are available on our Investor Relations website. A replay and transcript of this call will also be made available on our website.

Before we get started, I’d like to draw your attention to our safe harbor statement on Slide 2. Information in this presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussions of factors that may affect future results is contained in Verizon’s filings with the SEC, which are 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 included in the financial materials posted on our website.

Now, let’s take a look at consolidated earnings for the third quarter. In the third quarter, we reported earnings of $1.17 per share on a GAAP basis. Reported third quarter earnings include a pre-tax loss from special items of approximately $881 million. This includes a net pre-tax charge of approximately $645 million, primarily related to a mark-to-market adjustment for our pension liabilities and the impacts of amortization of intangible assets related to TracFone and other acquisitions of $236 million. Excluding the effects of these special items, adjusted earnings per share was $1.32 in the third quarter.