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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 March 31, 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

Picture 2

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)

1919 McKinney Avenue

Dallas, Texas

75201

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (972) 445-0042

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 if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes __ No _X_

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes __ No _X_

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 and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted 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 and post 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 “large accelerated filer”, “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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. x

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. o

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). o

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 April 29, 2024 was 248,552,000.


FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

Table of Contents

Page

Part I. Financial Information (Unaudited)

Item 1. Financial Statements

Consolidated Balance Sheets as of March 31, 2024, and December 31, 2023

1

Consolidated Statements of Income for the three months ended March 31, 2024, and 2023

2

Consolidated Statements of Comprehensive (loss) Income for the three months ended March 31, 2024, and 2023

3

Consolidated Statements of Equity for the three months ended March 31, 2024, and 2023

4

Consolidated Statements of Cash Flows for the three months ended March 31, 2024, and 2023

5

Notes to Consolidated Financial Statements

6

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

30

Item 3. Quantitative and Qualitative Disclosures about Market Risk

44

Item 4. Controls and Procedures

46

Part II. Other Information

Item 1. Legal Proceedings

47

Item 1A. Risk Factors

47

Item 6. Exhibits

49

Signature

50


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)

March 31, 2024

December 31, 2023

ASSETS

Current assets:

Cash and cash equivalents

$

1,296

$

1,125

Short-term investments

225

1,075

Accounts receivable, less allowances of $64 and $53, respectively

447

446

Prepaid expenses

64

67

Income taxes and other current assets

49

68

Total current assets

2,081

2,781

Property, plant and equipment, net

14,296

13,933

Other intangibles, net

3,505

3,585

Other assets

315

394

Total assets

$

20,197

$

20,693

LIABILITIES AND EQUITY

Current liabilities:

Long-term debt due within one year

$

15

$

15

Accounts payable and accrued liabilities

884

1,103

Advanced billings

196

182

Accrued other taxes

122

118

Accrued interest

183

126

Pension and other postretirement benefits

38

38

Other current liabilities

502

693

Total current liabilities

1,940

2,275

Deferred income taxes

641

643

Pension and other postretirement benefits

563

697

Other liabilities

554

553

Long-term debt

11,240

11,246

Total liabilities

14,938

15,414

Equity:

Common stock, $0.01 par value (1,750,000 authorized shares, 248,547

and 245,813 shares issued and outstanding at March 31, 2024 and

December 31, 2023, respectively)

2

2

Additional paid-in capital

4,281

4,297

Retained earnings

885

884

Accumulated other comprehensive income, net of tax

91

96

Total equity

5,259

5,279

Total liabilities and equity

$

20,197

$

20,693

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


1


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 ended

March 31,

2024

2023

Revenue

$

1,462

$

1,440 

Operating expenses:

Cost of service

522

542 

Selling, general, and administrative expenses

428

417 

Depreciation and amortization

388

330 

Restructuring costs and other charges

34

8 

Total operating expenses

1,372

1,297 

Operating income

90

143 

Investment and other income, net (See Note 10)

112

2 

Interest expense

(199)

(141)

Income before income taxes

3

4 

Income tax expense

2

1 

Net income

$

1

$

3 

Basic net earnings per share

attributable to Frontier common shareholders

$

0.00

$

0.01 

Diluted net earnings per share

attributable to Frontier common shareholders

$

0.00

$

0.01 

Total weighted average shares outstanding - basic

246,301

245,081 

Total weighted average shares outstanding - diluted

247,040

246,425 

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


2


PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

($ in millions)

(Unaudited)

For the three months ended

March 31,

2024

2023

Net income

$

1

$

3 

Other comprehensive (loss) income, net of tax

(5)

4 

Comprehensive (loss) income

$

(4)

$

7 

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


3


PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

($ in millions and shares in thousands)

(Unaudited)

For the three months ended March 31, 2024

Accumulated

Additional

Other

Common Stock

Paid-In

Retained

Comprehensive

Total

Shares

Amount

Capital

Earnings

Income

Equity

Balance at January 1, 2024

245,813

$

2

$

4,297

$

884

$

96

$

5,279

Stock plans, net

2,734

-

(16)

-

-

(16)

Net income

-

-

-

1

-

1

Other comprehensive

loss, net of tax

-

-

-

-

(5)

(5)

Balance at March 31, 2024

248,547

$

2

$

4,281

$

885

$

91

$

5,259

For the three months ended March 31, 2023

Accumulated

Additional

Other

Common Stock

Paid-In

Retained

Comprehensive

Total

Shares

Amount

Capital

Earnings

Income

Equity

Balance at January 1, 2023

245,021

$

2

$

4,198

$

855

$

79

$

5,134

Stock plans, net

211

-

22

-

-

22

Net income

-

-

-

3

-

3

Other comprehensive

income, net of tax

-

-

-

-

4

4

Balance at March 31, 2023

245,232

$

2

$

4,220

$

858

$

83

$

5,163

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

4


PART I. FINANCIAL INFORMATION (Continued)

FRONTIER COMMUNICATIONS PARENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

(Unaudited)

For the three months ended
March 31,

2024

2023

Cash flows provided from (used by) operating activities:

Net income

$

1

$

3

Adjustments to reconcile net income to net cash provided from (used by) operating activities:

Depreciation and amortization

388