Company profile

Ticker
FTR
Exchange
CEO
Daniel J. McCarthy
Employees
Incorporated in
Location
Fiscal year end
Former names
Citizens Communications Co, Citizens Utilities Co
SEC CIK
IRS number
60619596

FTR stock data

(
)

Calendar

6 May 20
11 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 1.93B 1.94B 2B 2.07B
Net income -186M -162M -345M -5.32B
Diluted EPS -1.78 -1.54 -3.31 -51.07
Net profit margin -9.62% -8.34% -17.28% -257%
Operating income 272M 220M 26M -5.46B
Net change in cash 181M 77M 416M 148M
Cash on hand 941M 760M 683M 267M
Cost of revenue
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 8.11B 8.61B 9.13B 8.9B
Net income -5.91B -643M -1.8B -373M
Diluted EPS -56.8 -8.37 -25.99 -7.61
Net profit margin -72.91% -7.47% -19.76% -4.19%
Operating income -4.87B 827M -1.48B 911M
Net change in cash 406M -8M -160M -414M
Cash on hand 760M 354M 362M 522M
Cost of revenue 1.25B 1.44B 1.6B 1.47B

Financial data from company earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
5 Jun 20 Bruha Sheldon Common Stock Sale back to company Dispose D No 0 33,333 0 75,815
8 May 20 Maduri John Common Stock Sale back to company Dispose D No 0 30,678 0 156,578
14 Feb 20 Mark D Nielsen Common Stock Payment of exercise Dispose F No 0 11,131 0 93,279
14 Feb 20 Mark D Nielsen Common Stock Payment of exercise Dispose F No 0 1,602 0 104,410
14 Feb 20 Maduri John Common Stock Payment of exercise Dispose F No 0 14,411 0 187,256
14 Feb 20 Steve Gable Common Stock Payment of exercise Dispose F No 0 12,970 0 133,109
14 Feb 20 Steve Gable Common Stock Payment of exercise Dispose F No 0 1,621 0 146,079
53.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 260 278 -6.5%
Opened positions 30 58 -48.3%
Closed positions 48 69 -30.4%
Increased positions 38 38
Reduced positions 71 78 -9.0%
13F shares
Current Prev Q Change
Total value 40.81M 82.54M -50.6%
Total shares 56.53M 62.02M -8.9%
Total puts 676.4K 5.17M -86.9%
Total calls 1.17M 787.4K +48.7%
Total put/call ratio 0.6 6.6 -91.2%
Largest owners
Shares Value Change
BLK BlackRock 9.77M $3.71M -0.2%
Charles Schwab Investment Management 8.52M $3.24M +40.7%
Vanguard 6.14M $2.33M -0.0%
Renaissance Technologies 5.36M $2.04M -2.4%
MS Morgan Stanley 3.01M $1.14M -24.9%
STT State Street 2.84M $1.08M +3.5%
Canada Pension Plan Investment Board 2.35M $894K 0.0%
Mitsubishi UFJ Trust & Banking 2.24M $850K 0.0%
NTRS Northern Trust 1.95M $740K +19.0%
Millennium Management 1.61M $613K -61.5%
Largest transactions
Shares Bought/sold Change
Millennium Management 1.61M -2.57M -61.5%
Charles Schwab Investment Management 8.52M +2.46M +40.7%
MS Morgan Stanley 3.01M -997.64K -24.9%
Coatue Management 848.52K +848.52K NEW
IVZ Invesco 1.24M +775.72K +167.6%
Parametric Portfolio Associates 64.77K -769.49K -92.2%
Susquehanna International 29.22K -764.99K -96.3%
Dimensional Fund Advisors 308.22K -516.02K -62.6%
BAC Bank of America 52.91K -458.65K -89.7%
C Citigroup 127.49K -411.48K -76.3%

Financial report summary

?
Risks
  • There is no assurance that we will be able to reach an agreement in principle in the form of a Restructuring Term Sheet, enter into the Restructuring Support Agreement, comply with the terms of any Restructuring Support Agreement or successfully complete the Restructuring contemplated thereby, creating substantial doubt about our ability to continue as a going concern.
  • We may seek the protection of the Bankruptcy Court, which would subject us to the risks and uncertainties associated with bankruptcy and may harm our business and place our equity holders at significant risk of losing all of their investment in the Company.
  • If we are unable to enter into a Restructuring Support Agreement or if a Restructuring Support Agreement is terminated, our ability to confirm and consummate the Plan may be materially and adversely affected.
  • We may not be able to obtain confirmation of the Plan.
  • Our limited liquidity could materially and adversely affect our business operations.
  • The negotiations regarding the Restructuring have consumed and will continue to consume a substantial portion of the time and attention of our management, which may have an adverse effect on our business and results of operations, and we may face increased levels of employee attrition.
  • Frontier is primarily a holding company and, as a result, we rely on the receipt of funds from our subsidiaries in order to meet our cash needs and service our indebtedness.
  • In certain instances, any Chapter 11 Cases may be converted to a case under Chapter 7 of the Bankruptcy Code.
  • Upon emergence from bankruptcy, our historical financial information may not be indicative of our future financial performance.
  • Upon our emergence from bankruptcy, the composition of our Board of Directors will likely change significantly.
  • We expect to make contributions to our pension plan in future years, the amount of which will be impacted by volatility in asset values related to Frontier’s pension plan and/or changes in pension plan assumptions.
  • Significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements.
  • We may not be able to fully utilize our net operating loss and other tax carryforwards.
  • We have experienced declining revenues and may experience further declines in our revenues going forward.
  • If our initiatives to stabilize and improve revenues, profitability and cash flows are unsuccessful, our financial position and results of operations will be negatively and adversely impacted.
  • We face intense competition.
  • We may be unable to meet the technological needs or expectations of our customers and may lose customers as a result.
  • Some of our competitors have superior resources, which may place us at a disadvantage.
  • Weak economic conditions and disruptions in our industry may decrease demand for our services, necessitate increased discounts and have a material adverse effect on our business and financial performance.
  • We rely on network and information systems and other technology, and a disruption or failure of such networks, systems or technology as a result of computer viruses, cyber-attacks, misappropriation of data or other malfeasance, as well as outages, accidental releases of information or similar events, may disrupt our business and materially impact our results of operations, financial condition and cash flows.
  • Our business is sensitive to continued relationships with and the creditworthiness of our wholesale customers.
  • A significant portion of our workforce is represented by labor unions.
  • If we are unable to hire or retain key personnel, we may be unable to operate our business successfully.
  • In recent years we have had a significant amount of goodwill and other intangible assets on our balance sheet. We recorded goodwill impairments in 2017, 2018 and 2019, resulting in significant non-cash charges to earnings and reductions in our stockholders’ equity. We impaired the remaining balance of our goodwill in 2019 and cannot assure you that our other intangible assets will not become further impaired in the future.
  • Negotiations with the providers of content for our video systems may not be successful, potentially resulting in our inability to carry certain programming channels on our FiOS and Vantage brand video systems, which could result in the loss of subscribers. Alternatively, because of the power of some content providers, we may be forced to pay an increasing amount for some content, resulting in higher expenses and lower profitability.
  • We are subject to a significant amount of litigation, which could require us to pay significant damages or settlements.
  • We rely on a limited number of key suppliers and vendors.
  • A portion of Frontier’s revenues are derived from federal and state subsidies, including support under the FCC’s CAF II program. To the extent the federal or any state government reduces such subsidies, or we are not successful in obtaining future subsidies, our operating income could be materially and adversely impacted.
  • Frontier and our industry will likely remain highly regulated, and we could incur substantial compliance costs that could constrain our ability to compete in our target markets.
  • FCC rulemakings and state regulatory proceedings, including those relating to intercarrier compensation, universal service and broadband services, could have a substantial adverse impact on our operations.
  • We are subject to the oversight of certain federal and state agencies that have in the past, and may in the future, investigate or pursue enforcement actions against us relating to consumer protection matters.
  • Tax legislation may adversely affect our business and financial condition.
  • If we fail to regain and maintain compliance with the continued listing standards of Nasdaq, or if we file for protection under the federal bankruptcy laws, our common stock may be delisted and have a material adverse effect on our business, results of operations, financial condition, liquidity and stock price.
  • Continued volatility and declines in the price of our common stock may have a material adverse effect on our business and stockholders.
  • Trading in our securities is highly speculative and poses substantial risks.
  • There is no assurance that an active public trading market will continue, or that there will be an active public trading market for the New Common Stock of the Reorganized Company.
Management Discussion
  • We provide service and product options in our consumer and commercial offerings in each of our markets.
  • For the year ended December 31, 2019, Frontier lost 313,000, or 8% of our consumer customers compared to 337,000, or 8% in 2018. As of December 31, 2019, 56% of our consumer broadband customers also subscribed to at least one other service offering. We lost 5% of our consumer broadband subscribers, primarily to competitors offering more attractive pricing or higher speeds. We experienced a 20% decline in our video subscribers primarily as a result of customers increasingly opting for other video services including Over the Top, in lieu of traditional video services. We also shifted our focus away from the acquisition of higher cost video customers. During 2019, we lost voice subscribers as a result customers choosing alternative voice products and reduced attachment to broadband services.
  • Our average monthly consumer customer churn was 2.07% for the year ended December 31, 2019 compared to 1.97% for 2018. The consolidated average monthly consumer revenue per customer (consumer ARPC) increased by $2.44 or 3% to $88.70 during 2019 compared to the prior year. The overall increase in consumer ARPC is primarily a result of consumer, broadband, and video pricing initiatives that were implemented in 2018.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Avg
New words: absolute, administered, advisory, affirmative, aid, aim, al, American, ATI, attached, attachment, bankruptcy, bound, Bulletin, calendar, cancelled, caption, carryback, Cayman, chain, chapter, choosing, claim, clarifying, comprise, comprised, confirmation, confirming, Consenting, constituted, contemplated, conversion, corona, CS, CSLF, curb, DB, DBNY, DBSI, debtor, declared, deduction, deferral, delist, delisted, delisting, demand, denied, description, desirable, detail, detailed, difficult, DIP, disconnection, discretion, disposition, distribution, docket, domestic, drastic, earlier, effectuate, effort, emerge, emergence, emergency, ensure, ensuring, entity, entry, escalation, evolving, examine, exit, expand, facilitate, faith, field, FTRCQ, global, Goldman, good, greatly, GS, health, history, holder, home, impede, imposed, imposing, inadvertent, inadvertently, incorporated, increasingly, indirectly, interfere, IRC, jointly, junior, largest, launched, legacy, length, lessen, lethal, listed, listing, lump, meaningful, meant, merge, mitigation, modified, MSSF, mutual, Nasdaq, necessitate, Notwithstanding, oa, oall, oan, occurrence, opting, ordinary, Organization, OTC, outbreak, outlined, owner, pandemic, past, pendency, people, percent, percentage, Petition, pink, PLC, pled, police, pool, possession, postpone, power, precedent, Prepayment, prepetition, preserve, priority, pro, procedure, processing, procure, professional, prohibiting, projected, promptly, promulgated, rapid, rata, RDD, reached, recapitalization, receipt, recommended, reliance, removal, removing, rendering, rental, Reorganized, repayment, requisite, reservation, school, simplify, Simplifying, slowdown, SMB, social, solicitation, soliciting, Southern, spread, Stanley, Suisse, superpriority, supply, suspended, swift, symbol, takeback, taxpayer, technical, telecommunication, telephone, tentatively, terrestrial, threshold, Top, transferee, treatment, type, undrawn, unimpaired, unknown, unlimited, unprecedented, unrelated, upgrade, USA, viable, voluntary, vote, voting, waive, weak, website, WIFI, world, worldwide
Removed: accessing, account, accounted, accredited, agency, announced, annum, assist, avoidance, awarded, borrowed, brand, bright, Carolina, combination, comparative, consisted, consistently, decreasing, defending, direct, dual, easement, economically, enhancing, enterprise, estate, executing, exemption, expedient, explicit, float, Florida, generating, grown, Guarantee, hindsight, identification, implemented, improved, improving, Indiana, infringe, initial, initiated, Joinder, land, larger, lessee, lessor, liquidation, mature, medium, Minnesota, Mitsubishi, nationally, neutral, Nonemployee, North, noted, Ohio, originally, perform, personal, phasedown, piece, plaintiff, practical, predominant, preference, prospective, real, refinance, relationship, replaced, retained, retire, serve, served, single, slight, sooner, source, South, Sprint, Supplemental, supporting, targeted, telecom, tender, Tokyo, transparent, trend, UFJ, unsubordinated, updated, VantageTM, violating