Tank you @icg. @npj you are a complete moron. There are no "stories" financials don't work that way. There is only what the numbers show, they don't lie. Of course Shamwow and his numbers clowns will spin and hide certain metrics to woo shareholders.
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Npj. Why are they the unions story that the company is in debt. Per investigative reporting by moody's. Or the unions story that the the company makes tons of profits isn't that public knowledge. Or are you saying the unions makes up the profits that lowell talks about at share holders meetings and i guess your saying that the union owns moodys and controls what they write. Or could it just be you want to blame the union for everything but your vacation days. Sick days and your forty hour week ?
The spend & Squeeze, spend & squeeze, is catching up with verizon. I'm not sure where that was taught at but once someone is hired here it's like a cancer thattakes over the brain.
Is VLSS fired up? Yep! Give lowell a raise!!
Data center deal failed, like the rest? Yep! Bust the unions.
Other wireless carriers got us by our nuts? Yep! Layoff people & purchase vending machines for nuts & bolts.
Clearly its the rich good ole boys club running verizon. So very very out of touch.
Another huge part of the problem with verizon is named marc reed.
@H218GTA-npj is someone who should be out in the field learning this business, rather than inside the house and posting here about how little they know about the business.
There is plenty of cash. As of the end of 2015 the company had EBITDA of $49B and closed out the year with $5B in cash. That is a lot of money.
But the company also closed out the year with $110B in total debt. That is a lot of debt. So rather than pay down some of that massive debt with some of that massive cash flow, the company would rather waste money on foolish App dreams like GO90 and Hum and AOL.
Even worse, all of that cash flow is apparently still not enough to slake the executive thirst for bad investments, so they continue to borrow more through alternative means.
Do we need to draw some pictures for you too?
The union people complain they aren't getting paid enough and the company is raking in billions in profits.
Then, in an attempt to sling mud at the company they post articles designed to make it appear as though Verizon is billions in debt, cooking the books, and doing poorly from a financial standpoint.
I don't really understand why the union people are complaining about all those big company profits if Verizon is in such a bad financial position and cooking the books like the OP here is suggesting. If we are to believe the OP, then it's quite clear that the company can't afford to pay union employees more money or continue giving them free healthcare.
Which story is it the union wants us to believe, the original "huge profits" story or this latest "swimming in debt with no money and cooked books" story?
I agree @nss. Verizon today is like the banking and mortgage industry in 2007. They keep getting more creative at engineering their finances. Now they have debt bonds for sale. Why would someone want to own Verizon's debt?
And to the person who said Lowell got a rasie. What's your point? What CEO isn't overcompensated? His pay has nothing to do with the financial health of Verizon.
Basic business rule of thumb you can re-invest all of your earnings back into your business or pay dividends, or some mix. But you can't do both, unless you engage in never ending sale/leasebacks until you have nothing left to finance.
When is someone going to finally call BS on these execs? When are the investors going to start demanding that these execs start cleaning up the top line instead of always squeezing expenses? When are analysts going to start asking where all of the returns are for all of this non telecom ancillary investing?
There is something very wrong at Verizon and it is not their managers and its not their craft and union employees.
hmmmm... so why did lowell get a few raises in the millions of dollars?
Thank you. I have been saying this forever and no one listens. Everyone thinks Verizon is unstoppable but the truth is they keep there debt in the shadows and only focus on the positive.
The reality is Verizon has more debt than any other company in the world and it WILL catch up to them.
So rather than de-lever and start paying down their mountains of debt with all of their great cash flow, the company continues to throw shareholder money into losing propositions like Go90 and Hum and AOL.
Since the company bond borrowings are so high, they they now have to rely on alternative and more exotic borrowing methods, like salelease backs on everything they own. I thought the rating agencies were going to start to clean up their acts and reign in some of this debt market madness. I guess not.
ikidunot 5 minutes ago
So if anyone is wondering why Verizon wants cut backs in pay from its employees, just read this one line from a Moody's Report...
"AT&T and Verizon are the most indebted non-financial corporate issuers in Moody's-rated universe, with total debt of $129 billion and $120 billion respectively as of 30 June, according to the report, "AT&T Inc. and Verizon Communications Inc.: As Credit Cycle Fades, Big Debt Balances Leave Narrow Safety Margin."
See, Verizon needs to make the math work on paper because they are currently trying to acquire even MORE Debt by issuing even MORE Bonds... The interest rates are killing the bottom line. That's why they want the employees to give back on pay and benefits...
This Financial mess is entirely the fault of Verizon Executives who are being over paid to run the company into the ground by acquiring even more debt.
What?