Verizon

Tony Gauvin
All images from www22.verizon.com

©2005 Tony Gauvin, UMFK

Overview
 Existing Condition
 Industry overview
 New Vision and Mission
 External opportunities and threats
 CPM
 EFE
 Internal strengths and weaknesses
 IFE
 Analysis
 SWOT Matrix
 SPACE
 BCG
 IE matrix
 Grand Strategy Matrix
 QSPM
 Possible strategies
 Recommendations
 Strategic implementation and desired results
 Annual objectives (goal) and polices
 Evaluation Procedure

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Verizon Overview
 Verizon Communications Inc. is a provider of communications services with four
operating segments:
 Domestic Telecom
 Domestic Telecom services principally represent Verizon's telephone operations that
provide local telephone services in 29 states and the District of Columbia
 Domestic Wireless
 Domestic Wireless products and services include wireless voice and data services
and equipment sales across the United States.
 Information Services
 The Information Services segment encompasses Verizon’s domestic and international
publishing businesses, including print SuperPages and electronic SuperPages.com
directories, as well as Website creation and other electronic commerce services. This
segment has operations principally in North America and Latin America
 International
 The International segment has wireline and wireless communications operations and
investments primarily in the Americas, as well as investments in Europe.

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

History
 Formed on June 30, 2000, with the merger
of Bell Atlantic Corp. and GTE Corp.
 GTE
 7.1 million wireless customers
 35 million land lines in US, Canada and Caribbean
 Bell Atlantic
 43 million mobile customers
 World’s largest directory information service
 Trades as VZ on NTSE

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Stock Price Performance

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Industry overveiw (2005)
 More than 40 percent of long-distance telephone use and more than a third of local
telephone use has been supplanted by new technologies.
 By 2004 the number of long-distance calls made over wireless networks exceeded
those made over wireline networks. Wireless minutes of use exceeded 1 trillion in
2004.
 More than 180 million Americans have wireless phones - approximately one in five of
whom use their mobile phones as their main communications device.
 More than 70 percent of American households are connected to the Internet, and by
2010 an estimated 62 percent will use broadband access.
 80 percent of American adults under age 50 use the Internet.
 Instant messages, which already outnumber e-mails, are not only becoming the
principal means of communication for young people, but have evolved beyond text to
voice and video.
 Nationwide wireless networks and Internet-based communications have changed
traditional distinctions between "local" and "long-distance" services.

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Compare to Industry

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

A Global Market

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Key Facts
 32.5 Million customers
 In 49 of the top 50 US markets
 Revenue is flat for 2000-2003
 Income is flat for 2000-2003
 Spent 12 billion in 2002 to build out fiber
plant (DSL)

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK
Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK
Goals and Objectives
 Verizon had no published Mission and Vision, The following is from 2004
Annual report
 Verizon is creating the future of communications by ushering in a new era in wireline
and wireless broadband connectivity. We are transforming our networks, products
and services to provide our customers with the best possible communications
experience at home, work or on the go … now and in the future.
 Our strategic investments have created the nation’s most reliable wireless voice
network, delivered a portfolio of innovative mobile products and produced over 43
million loyal customers. We are also transforming our wireline networks to deliver
superior broadband services. Because of our commitment to innovation and
investment, our customers are better informed, better entertained and better
connected to the things that matter most to them.
 By creating the future for our customers, we are also creating the future for
ourselves. We are transforming our revenue base around the growth markets of the
future and positioning ourselves to compete for an increasing share of the new
markets being created by broadband and wireless technologies.

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Proposed Vision
 At Verizon, our vision is to be the market
leader in delivering innovative, integrated
communications solutions to customers at
home, at work and on the go.

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Proposed Mission
 At Verizon, our mission is to be the market leader in delivering
innovative, integrated communications solutions to customers at
home, at work and on the go. The more people connected to a
network, the more valuable it is to users. That’s the idea that
underlies our business. It’s also the philosophy behind our
commitment to our communities. Our aim is to mobilize and
empower the millions of individuals and organizations —
employees, retirees, customers and nonprofits —that comprise the
Verizon community, putting the tools for progress into the hands of
people who can make a difference on the local level. We promote
employee volunteerism through matching gift programs that
recognize contributions of money and time. And we are helping
build a strong and lasting infrastructure for progress by making sure
people have the fundamental skills —like literacy and access to
technology —to succeed in the digital era.”

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

 External opportunities and threats
Opportunities

1. 141 million possible customers in Europe, UK, and Germany

2. Strengthening foreign currencies vs. dollar- Euro advantages
3. Increased usage of wireless services
4. Small wireless providers are consolidating with larger providers due to
increased competition
5. Increased desire for high-speed internet service
Threats

1. New regulatory complaints (new phone # portability)

2. Rising costs of healthcare
3. Global unrest- economic monetary and financial
4. Consumer privacy rights under attack
5. Weak consumer spending
6. Decreasing demand for traditional voice lines and fixed lines
7. Increasing overlap of telecommunication territories
8. Increasing competition for providers of web search directories
9. Increasing providers of wireless services
10. Brand recognition

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

EFE
EFE Matrix
Opportunities Weight Rating Weighted Score
1. 141 million possible customers in Europe, UK, and Germany 0.06 1 0.06
2. Strengthening foreign currencies vs. dollar- Euro advantages 0.06 1 0.06
3. Increased usage of wireless services 0.02 4 0.08
4. Small wireless providers are consolidating with larger providers due
0.06 2 0.12
to increased competition
5. Increased desire for high-speed internet service 0.10 4 0.40
Threats Weight Rating Weighted Score
1. New regulatory complaints (new phone # portability) 0.10 2 0.20
2. Rising costs of healthcare 0.07 2 0.14
3. Global unrest- economic monetary and financial 0.12 2 0.24
4. Consumer privacy rights under attack 0.02 4 0.08
5. Weak consumer spending 0.10 2 0.20
6. Decreasing demand for traditional voice lines and fixed lines 0.05 4 0.20
7. Increasing overlap of telecommunication territories 0.06 3 0.18
8. Increasing competition for providers of web search directories 0.02 2 0.04
9. Increasing providers of wireless services 0.06 4 0.24
10. Brand recognition 0.10 4 0.40
TOTALS 1.00 2.64

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

CPM
Competitive Profile Matrix

Verizon Alltel SBC

(Cingular)

Critical Success Weight Rating Weighted Rating Weighted Rating Weighted

 
Factors Score Score Score
Market Share 0.10 4 0.40 2 0.20 3 0.30
Price 0.25 3 0.75 4 1.00 2 0.50
Financial Position 0.20 2 0.40 3 0.60 4 0.80  
Consumer Loyalty 0.30 2 0.40 3 0.90 3 0.90
Brand Awareness 0.15 4 0.60 3 0.45 3 0.45
Total 1.00 2.55 3.15 2.95  

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Internal strengths and weaknesses
Strengths
1. Top wireless provider in the U.S. serving 49 of the top 50 markets
2. High-speed data network in all major markets
3. Largest provider of local, long distance, data, and broadband services in 2/3 of
the top 100 markets in the U.S.
4. Leading print and on-line directory publisher with 2100 in U.S. and 13 other
countries
5. Verizon invested $12 billion in 2002 in 400,000 miles of fiber-optic cable.
6. Marketing campaign – brand awareness
Weaknesses
1. $49 billion in long term debt
2. Lack of international presence
3. Revenue only increased 4 percent since year end 2000.

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

IFE
IFE Matrix
Strengths Weight Rating Weighted Score
1. Top wireless provider in the U.S. serving 49 of the top 50 markets 0.17 4 0.68
2. High-speed data network in all major markets 0.13 3 0.39
3. Largest provider of local, long distance, data, and broadband services
0.10 4 0.40
in 2/3 of the top 100 markets in the U.S.
4. Leading print and on-line directory publisher with 2100 in U.S. and
0.10 3 0.30
13 other countries
5. Verizon invested $12 billion in 2002 in 400,000 miles of fiber-optic
0.15 4 0.60
cable.
6. Marketing campaign – brand awareness 0.10 4 0.40

Weaknesses Weight Rating Weighted Score

1. $49 billion in long term debt 0.10 1 0.10
2. Lack of international presence 0.05 2 0.10
3. Revenue only increased 4 percent since year end 2000. 0.10 1 0.10
TOTALS 1.00 3.07

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Key Ratios
Verizon Industry Sector S&P 500

Valuation Ratios
P/E Ratio (TTM) 28.99 27.9 28.9 24.01
P/E High - Last 5 Yrs NA 36.84 48.47 45.41
P/E Low - Last 5 Yrs 9.04 10.16 16.09 16.26
Beta 0.97 1.28 0.96 1
Price to Sales (TTM) 1.5 1.93 2.8 3.33
Price to Book (MRQ) 3.03 2.59 3.89 4.29
Price to Tangible Book (MRQ) N/A 4.36 6.6 7.56
Price to Cash Flow (TTM) 5.94 6.92 17.03 17.32
Price to Free Cash Flow (TTM) 16 16.18 33.11 28.97
% Owned Institutions 54.54 38.23 50.48 64.19

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Key Ratios
Verizon Industry Sector S&P 500
Dividends
Dividend Yield 4.21 4.2 2.14 2.04
Dividend Yield - 5 Yr Avg 3.4 2.34 1.43 1.48
Dividend 5 Yr Growth Rate 0 -0.87 -0.89 6.48
Payout Ratio (TTM) 120.6 33.73 15.54 26.78
Verizon Industry Sector S&P 500
Growth Rates %
Sales (MRQ) vs Qtr 1 Yr Ago 0.72 2.36 14.39 13.4
Sales (TTM) vs TTM 1 Yr Ago 0.67 3.55 15.92 11.9
Sales - 5 Yr Growth Rate 3.49 12.49 17.25 9.3
EPS (MRQ) vs Qtr 1 Yr Ago N/A -17.21 15.43 28.69
EPS (TTM) vs TTM 1 Yr Ago -25.06 -4.84 16.37 21.92
EPS - 5 Yr Growth Rate -7.98 -1.81 15.23 12.15
Capital Spending - 5 Yr Growth
Rate -1.5 -2.37 2.61 4.06

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Key ratios
Verizon Industry Sector S&P 500
Financial Strength
Quick Ratio (MRQ) 0.48 1.01 0.93 1.26
Current Ratio (MRQ) 0.69 1.22 1.47 1.76
LT Debt to Equity (MRQ) 1.18 0.84 0.74 0.68
Total Debt to Equity (MRQ) 1.36 0.95 0.82 0.85
Interest Coverage (TTM) 2.68 3.18 7.84 11.86
Verizon Industry Sector S&P 500
Profitability Ratios %
Gross Margin (TTM) 67.85 60.97 42.84 47.32
Gross Margin - 5 Yr Avg 57.39 54.17 42.06 47.01
EBITD Margin (TTM) 31.16 31.75 22.32 20.79
EBITD - 5 Yr Avg 39.98 30.7 21.97 20.82
Operating Margin (TTM) 11.06 12.99 12.9 20.33
Operating Margin - 5 Yr Avg 20.77 13.72 11.21 18.35
Pre-Tax Margin (TTM) 7.03 10.68 10.37 17.27
Pre-Tax Margin - 5 Yr Avg 14.12 10.56 11.77 17.54
Net Profit Margin (TTM) 5.18 7.03 7.54 13.12
Net Profit Margin - 5 Yr Avg 8.79 5.18 7.62 11.59
Effective Tax Rate (TTM) 26.3 29.08 32.18 31.31
Effective Tax Rate - 5 Yr Avg 41.35 35.99 36.04 34.2

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Key Ratios
Verizon Industry Sector S&P 500
Management Effectiveness %
Return on Assets (TTM) 2.09 3.21 5.91 6.4
Return on Assets - 5 Yr Avg 4.17 2.87 5.49 6.79
Return on Investment (TTM) 2.51 3.84 7.98 9.97

Return on Investment - 5 Yr Avg 5.37 3.7 7.59 10.93

Return on Equity (TTM) 10.25 13.28 13.51 18.71
Return on Equity - 5 Yr Avg 19.36 9.79 13.18 19.22

Efficiency
Revenue/Employee (TTM) 333,589 405,314 479,338 622,866
Net Income/Employee (TTM) 17,277 102,467 90,606 81,707
Receivable Turnover (TTM) 6.28 7.39 17.23 9.76
Inventory Turnover (TTM) 15.92 21.63 17.53 10.46
Asset Turnover (TTM) 0.4 0.47 1.17 0.92

www.investor.stockpoint.com

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

 SWOT Matrix
1.Top wireless provider in the U.S. serving 49 of the top 50 markets 1.49 billion dollars in long term debt
2.High-speed data network in all major markets 2.Lack of international presence
3.Largest provider of local, long distance, data, and broadband services 3.Revenue only increased 4 percent since
in 2/3 of the top 100 markets in the U.S. year end 2000.
4.Leading print and on-line directory publisher with 2100 in U.S. and
13 other countries
5.Verizon invested 12 billion in 2002 in 400,000 miles of fiber-optic
cable.
6.Marketing campaign – brand awareness

S-O Strategies W-O Strategies

1.141 million possible investors in Europe, UK, and
Germany
2.Strengthening foreign currencies vs dollar- Euro
advantages
3.Increased usage in wireless services
4.Small wireless providers are consolidating with
larger providers due to increased competition
5.Increased desire for high-speed internet service
1.Expand wireless services into Europe, UK and/or Germany (S1, O1, 1.Purchase international wireless
O3) providers such as MMO2 (W2, O4)
2.Expand high speed internet service in Europe, UK and/or Germany 2.Offer services to people in Europe to
(S2,O5) increase revenue due to the difference
3.Acquire small domestic wireless providers such as Powertel or Aerial in foreign currency (W1, O2)
(S1, O4)
4.Invest capital into fiber optic cable to compete with cable companies.
(S5, O5)
S-T Strategies W-T Strategies

1.New regulatory complaints (new phone # 1.Enterinto a joint venture with MCI to offer a package deal (S1, T12) 1.Expand globally in Europe (W2, T7)
portability) 2.Proceed with legal battles to serve local markets to increase traditional 2.Liquidate the Telecommunications
2.Rising costs of healthcare voice and fixed lines.(S3, T7) Services such as fixed lines and
3.Global unrest- economic monetary and financial traditional lines business to reduce
4.Consumer privacy rights being attacked long-term debt. (W1, T6)
5.Weak Consumer spending
6.Decreasing demand for traditional voice lines and
fixed lines
7.Increasing overlap of telecommunication territories
8.Increasing competition for providers of web search
directories
9.IncreasingWednesday,
providers ofMarch
wireless
23,services
2005 © 2005 Tony Gauvin, UMFK
10.Brand recognition
Space Matrix
SPACE Matrix
Y axis Financial strength +4 +1 worst to + 6 best Y axis: 4 + (-2) = 2
Environmental stability -2 -1 best to -6 worst
X axis Industry strength 5 +6 best to +1 worst X axis: 5 + (-1) = 4
Competitive advantage -1 -6 worst to –1 best

Conservative Aggressive

(2, 4)

Defensive Competitive

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

BCG
Relative Market Share Position
High Medium Low
1.0 .50 0.0
High +20 Star Question Mark

Wireless

30%

70%

Industry
Sales
Growth Medium 0 Cash Cow Dog
Rate
(Percentage)

Telecom 30%

70%

Low -20

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

IE Matrix
The Total IFE Weighted Scores
Strong Average Weak
4.0 to 3.0 2.99 to 2.0 1.99 to 1.0
4.0 I II III
High

3.0 IV V VI

The 30%
EFE 30%
Total Medium
70%
Weighted
Scores
Wireless
70%
Verizon
Telecom
2.0 VII VIII IX

Wednesday, March 23, 2005 Low © 2005 Tony Gauvin, UMFK

1.0
GSM
RAPID MARKET
GROWTH

Quadrant II Quadrant I

Verizon

WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION

Quadrant III Quadrant IV

SLOW MARKET
GROWTH
1. Market Development
2. Market Penetration
3. Product development
4. Forward Integration
5. Backward Integration
6. Horizontal Integration
7. Concentric diversification

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Matrix Analysis and SWOT Summary
Alternative Strategies IE SPACE GRAND COUNT
Forward Integration X X X 3
Backward Integration X X X 3
Horizontal Integration X X X 3
Market Penetration X X X 3
Market Development X X X 3
Product Development X X X 3
Concentric Diversification X 1
Conglomerate Diversification X X 2
Horizontal Diversification X 1
Joint Venture 0
Retrenchment 0
Divestiture 0
Liquidation 0

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Possible Strategies

 Grow Fiber plant to increase domestic sales

opportunities (again)
 Move into European markets
 Wireless
 High Speed Internet
 Acquire smaller wireless providers to grow US
markets
 Joint venture with large provider for Wireless

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

QSPM
Enter into a
joint venture
Invest capital
with MCI to
in fiber optic
offer a bundled
cable
wireless
package
Opportunities Weight AS TAS AS TAS
1. 141 million possible customers in Europe, UK, and Germany 0.06 2 0.12 4 0.24
2. Strengthening foreign currencies vs. dollar- Euro advantages 0.06 0 0.00 0 0.00
3. Increased usage of wireless services 0.02 4 0.08 2 0.04
4. Small wireless providers are consolidating with larger providers due
0.06 0 0.00 0 0.00
to increased competition
5. Increased desire for high-speed internet service 0.10 0 0.00 0 0.00
Threats Weight AS TAS AS TAS
1. New regulatory complaints (new phone # portability) 0.10 0 0.00 0 0.00
2. Rising costs of healthcare 0.07 0 0.00 0 0.00
3. Global unrest- economic monetary and financial 0.12 0 0.00 0 0.00
4. Consumer privacy rights under attack 0.02 3 0.06 2 0.04
5. Weak consumer spending 0.10 0 0.00 0 0.00
6. Decreasing demand for traditional voice lines and fixed lines 0.05 0 0.00 0 0.00
7. Increasing overlap of telecommunication territories 0.06 0 0.00 0 0.00
8. Increasing competition for providers of web search directories 0.02 2 0.04 3 0.06
9. Increasing providers of wireless services 0.06 0 0.00 0 0.00
10. Brand recognition 0.10 0 0.00 0 0.00

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

QSPM
Enter into a joint
Invest capital in venture with MCI
fiber optic cable to offer a bundled
wireless package

Strengths Weight AS TAS AS TAS

1. Top wireless provider in the U.S. serving 49 of the top 50 markets 0.17 2 0.34 3 0.51
2. High-speed data network in all major markets 0.13 2 0.26 4 0.52
3. Largest provider of local, long distance, data, and broadband services
0.10 2 0.20 3 0.30
in 2/3 of the top 100 markets in the U.S.
4. Leading print and on-line directory publisher with 2100 in U.S. and
0.10 4 0.40 2 0.20
13 other countries
5. Verizon invested $12 billion in 2002 in 400,000 miles of fiber-optic
0.15 4 0.60 2 0.30
cable.
6. Marketing campaign – brand awareness 0.10 2 0.20 3 0.30

Weaknesses Weight AS TAS AS TAS

1. $49 billion in long term debt 0.10 4 0.40 3 0.30
2. Lack of international presence 0.05 3 0.15 4 0.20
3. Revenue only increased 4 percent since year end 2000. 0.10 1 0.10 2 0.20
TOTALS 2.95 3.21

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Decisions
 Primary
 Grow US wireless market by performing Joint
Bundling wireless effort with MCI
 Alternatives
 Buy smaller wireless providers
 Move in Foreign Markets
 Increase Optical Fiber capacity

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

 Show me the Money!
EPS/EBIT Analysis
Amount Needed 1,000M
Interest 5%
Tax Rate 35%
Share Price $25
Common Stock Financing Debt Financing
Shares Outstanding 2,765M
Recession Normal Boom Recession Normal Boom
EBIT 5,000,000,000 10,000,000,000 15,000,000,000 5,000,000,000 10,000,000,000 15,000,000,000
Interest 0 0 0 50,000,000 50,000,000 50,000,000
EBT 5,000,000,000 10,000,000,000 15,000,000,000 4,950,000,000 9,950,000,000 14,950,000,000
Taxes 1,750,000,000 3,500,000,000 5,250,000,000 1,732,500,000 3,482,500,000 5,232,500,000
EAT 3,250,000,000 6,500,000,000 9,750,000,000 3,217,500,000 6,467,500,000 9,717,500,000
# Shares 2,805,000,000 2,805,000,000 2,805,000,000 2,765,000,000 2,765,000,000 2,765,000,000
EPS 1.16 2.32 3.48 1.16 2.34 3.51
70 Percent Stock - 30 Percent Debt 70 Percent Debt - 30 Percent Stock
Recession Normal Boom Recession Normal Boom
EBIT 5,000,000,000 10,000,000,000 15,000,000,000 5,000,000,000 10,000,000,000 15,000,000,000
Interest 15,000,000 15,000,000 15,000,000 35,000,000 35,000,000 35,000,000
EBT 4,985,000,000 9,985,000,000 14,985,000,000 4,965,000,000 9,965,000,000 14,965,000,000
Taxes 1,744,750,000 3,494,750,000 5,244,750,000 1,737,750,000 3,487,750,000 5,237,750,000
EAT 3,240,250,000 6,490,250,000 9,740,250,000 3,227,250,000 6,477,250,000 9,727,250,000
# Shares 2,793,000,000 2,793,000,000 2,793,000,000 2,777,000,000 2,777,000,000 2,777,000,000
EPS 1.16 2.32 3.49 1.16 2.33 3.50

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Implementation
 Objectives
 Increase income by 40% in next 3 years
 Increase revenue by 25% in next three years
 Decrease cost by increasing efficiencies to match
income goals
 Decrease long–term debt
 Use increased income to pay down debt
 Match sector avg’s within 3 years

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Goals & Policies
 Telecom division
 5% reduction in expenses per annum
 Wireless
 15% increase in sales per annum

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Evaluations
 Qtr & Yearly financial reports
 Balanced Scorecard
 Yearly strategic meeting of division
management and corporate management

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

2004 Financial Statistics
 Operating Revenues $71.3 billion
 Net Income $7.0 billion
 EPS (diluted basis) $2.51
 Capital Expenditures $13.3 billion
 Total Debt $39.3 billion
 Cash Flow from Operating Activities
$21.8 billion
 Weighted Average Shares Outstanding
$2.77 billion
 Shareowners 2.7 million

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

2004 Financial Statistics
 Operating Revenues $75.1 billion
 Net Income $7.4 billion
 EPS (diluted basis) $2.65
 Capital Expenditures $13.3 billion
 Total Debt $39 billion
 Cash Flow from Operating Activities
$22 billion
 Weighted Average Shares Outstanding
$2.9 billion
 Shareowners 2.7 million

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK

Press Releases
 January 8, 2004
 Verizon Wireless Announces Roll Out of National 3G Network
 June 27, 2004
 Verizon Communications Reports 6% Second-Quarter Revenue Growth, Led
by Wireless Revenue Growth of 25%
 October 21, 2004
 Verizon Deploying Fiber Optics to Homes and Businesses in 6 More States in
Northeast and Mid-Atlantic
 March 13, 2005
 Verizon-MCI Transaction Creates New Competitor in Large-Business,
Government Markets, Seidenberg Says
 January 26, 2006
 Verizon Communications Reports Strong 4Q 2005 Results, Driven by
Continued Growth in Wireless and Broadband

Wednesday, March 23, 2005 © 2005 Tony Gauvin, UMFK