Frontier Communications Parent, Inc. [FYBR] Filings

10-Q 1 fybr-20220930x10q.htm 10-Q fybr-20220930x10q

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 September 30, 2022

¨ 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)


Delaware		86-2359749
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
incorporation or organization)

401 Merritt 7
Norwalk, Connecticut		06851
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (203) 614-5600

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.01 per share

FYBR

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “accelerated filer,” “large accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨

Smaller reporting company ¨ Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

The number of shares outstanding of the registrant’s Common Stock as of October 27, 2022 was 245,004,000.

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

Table of Contents


	Page
Part I. Financial Information (Unaudited)

Item 1. Financial Statements

Consolidated Balance Sheets as of September 30, 2022, and December 31, 2021	1

Consolidated Statements of Income for the three months ended September 30, 2022 (Successor), and the three months ended September 30, 2021 (Successor)	2

Consolidated Statements of Income for the nine months ended September 30, 2022 (Successor), the five months ended September 30, 2021 (Successor), and the four months ended April 30, 2021 (Predecessor)	3

Consolidated Statements of Comprehensive Income for the three months ended September 30, 2022 (Successor), the three months ended September 30, 2021 (Successor), the nine months ended September 30, 2022 (Successor), the five months ended September 30, 2021 (Successor), and the four months ended April 30, 2021 (Predecessor)	4

Consolidated Statements of Equity for the nine months ended September 30, 2022 (Successor); and for	5

Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 (Successor), the five months ended September 30, 2021 (Successor), and the four months ended April 30, 2021 (Predecessor)	6

Notes to Consolidated Financial Statements	7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	38

Item 3. Quantitative and Qualitative Disclosures about Market Risk	58

Item 4. Controls and Procedures	60

Part II. Other Information

Item 1. Legal Proceedings	61

Item 1A. Risk Factors	61

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	61

Item 6. Exhibits	62

Signature	63

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in millions and shares in thousands, except for per-share amounts)


	(Unaudited)
	September 30, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	230	$	2,127
Short-term investments		2,325		-
Accounts receivable, less allowances of $47 and $57, respectively		422		458
Prepaid expenses		80		73
Income taxes and other current assets		21		30
Total current assets		3,078		2,688

Property, plant and equipment, net		10,847		9,199
Other intangibles, net		3,986		4,227
Other assets		362		367
Total assets	$	18,273	$	16,481

LIABILITIES AND EQUITY
Current liabilities:
Long-term debt due within one year	$	15	$	15
Accounts payable		995		535
Advanced billings		195		197
Accrued other taxes		179		183
Accrued interest		178		76
Pension and other postretirement benefits		46		46
Other current liabilities		369		399
Total current liabilities		1,977		1,451

Deferred income taxes		554		387
Pension and other postretirement benefits		1,193		1,672
Other liabilities		496		403
Long-term debt		9,120		7,968
Total liabilities		13,340		11,881

Equity:
Common stock, $0.01 par value (1,750,000 authorized shares, 244,999
and 244,416 shares issued and outstanding at September 30, 2022 and
December 31, 2021, respectively)		2		2
Additional paid-in capital		4,171		4,124
Retained earnings		700		414
Accumulated other comprehensive income, net of tax		60		60
Total equity		4,933		4,600
Total liabilities and equity	$	18,273	$	16,481

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

‎

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

($ in millions and shares in thousands, except for per-share amounts)

(Unaudited)


	For the three months		For the three months
	ended September 30,		ended September 30,
	2022		2021

Revenue	$	1,444	$	1,576

Operating expenses:
Cost of service		544		590
Selling, general, and administrative expenses		431		421
Depreciation and amortization		296		273
Restructuring costs and other charges		4		8
Total operating expenses		1,275		1,292


Operating income		169		284

Investment and other income (loss), net (See Note 10)		211		(37)
Pension settlement costs		(50)		-
Interest expense		(135)		(90)

Income before income taxes		195		157
Income tax expense		75		31

Net income	$	120	$	126

Basic net earnings per share
attributable to Frontier common shareholders	$	0.49	$	0.52

Diluted net earnings per share
attributable to Frontier common shareholders	$	0.49	$	0.51

Total weighted average shares outstanding - basic		244,984		244,403

Total weighted average shares outstanding - diluted		245,212		245,667

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

‎

PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

($ in millions and shares in thousands, except for per-share amounts)

(Unaudited)


	Successor				Predecessor
	For the nine months		For the five months		For the four months
	ended September 30,		ended September 30,		ended April 30,
	2022		2021		2021

Revenue	$	4,350	$	2,637	$	2,231

Operating expenses:
Cost of service		1,643		986		830
Selling, general, and administrative expenses		1,293		690		537
Depreciation and amortization		870		452		506
Restructuring costs and other charges		88		19		7
Total operating expenses		3,894		2,147		1,880


Operating income		456		490		351

Investment and other income (loss), net (See Note 10)		410		(39)		1
Pension settlement costs		(50)		-		-
Reorganization items, net		-		-		4,171
Interest expense (See Note 8)		(356)		(152)		(118)

Income before income taxes		460		299		4,405
Income tax expense (benefit)		174		74		(136)

Net income	$	286	$	225	$	4,541

Basic net earnings per share
attributable to Frontier common shareholders	$	1.17	$	0.92	$	43.42

Diluted net earnings per share
attributable to Frontier common shareholders	$	1.17	$	0.92	$	43.28

Total weighted average shares outstanding - basic		244,711		244,402		104,584

Total weighted average shares outstanding - diluted		245,080		245,600		104,924

The accompanying Notes are an integral part of these unaudited Consolidated Financial Statements.

Frontier Communications Parent, Inc. [FYBR] Filings
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10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-03]
10-Q	[2021-08-05]
10-Q	[2021-04-30]
10-K	[2021-03-03]
10-Q	[2020-11-04]
10-Q	[2020-08-07]
10-Q	[2020-05-06]
10-K	[2020-03-31]
10-Q	[2019-11-06]
10-Q	[2019-08-07]
10-Q	[2019-05-02]
10-K	[2019-03-01]
10-Q	[2018-11-07]
10-Q	[2018-08-03]
10-Q	[2018-05-04]
10-K	[2018-03-01]
10-Q	[2017-11-02]
10-Q	[2017-08-03]
10-Q	[2017-05-04]
10-K	[2017-03-01]
10-Q	[2016-11-03]
10-Q	[2016-08-08]
10-Q	[2016-05-05]
10-K	[2016-02-25]
10-Q	[2015-11-05]
10-Q	[2015-08-05]
10-Q	[2015-05-07]
10-K	[2015-02-25]
10-Q	[2014-11-05]
10-Q	[2014-08-07]
10-Q	[2014-05-08]
10-K	[2014-02-27]
10-Q	[2013-11-07]
10-Q	[2013-08-08]
10-Q	[2013-05-07]
10-K	[2013-02-27]
10-Q	[2012-11-08]
10-Q	[2012-08-03]
10-Q	[2012-05-09]
10-K	[2012-02-23]