Reported year-over-year consumer revenue growth for the first time as a new public company, powered by accelerating fiber revenue growth
Delivered fastest year-over-year EBITDA growth in more than six years

Frontier Communications Parent, Inc. (NASDAQ:FYBR) ("Frontier") reported third-quarter 2023 results today.

"We delivered another strong quarter of operational results, with our first consumer revenue increase as a new public company, and an acceleration in our EBITDA growth," said Nick Jeffery, President and Chief Executive Officer of Frontier. "This quarter's strong results continue to show how every day, with every new fiber customer, we become a more valuable business."

"Our strong progress over the last two years gives me even more confidence that our strategy will create long-term, material value for our shareholders. We are Building Gigabit America to meet the connectivity needs of our customers and I am very excited about the tremendous opportunity ahead."

Third-Quarter 2023 Highlights¹

Passed 332,000 new fiber locations
Added 79,000 fiber broadband customers, resulting in fiber broadband customer growth of 19% year-over-year
Revenue of $1.44 billion, net income of $11 million and Adjusted EBITDA of $526 million
Capital expenditures of $671 million, including $143 million of non-subsidy-related build capital expenditures and $25 million of subsidy-related build capital expenditures
Net cash from operations of $383 million driven by strong operating performance and increased focus on working capital management
Achieved annualized run-rate cost savings of $484 million
Completed $2.1 billion of fiber securitization transactions in August 2023
Announced corporate headquarters relocation to Dallas, Texas

Third-Quarter 2023 Consolidated Financial Results²

Revenue of $1.44 billion decreased 0.6% year-over-year as growth in fiber-based products was offset by declines in copper-based products
Operating income of $114 million and net income of $11 million
Adjusted EBITDA of $526 million increased 3.5% year-over-year, as revenue declines were offset by lower content expenses and cost-savings
Adjusted EBITDA margin of 36.6% increased from 35.2% in the third quarter of 2022
Capital expenditures of $671 million decreased from $772 million in the third quarter of 2022, primarily due to lower pre-work capital spent to pass new fiber locations

Third-Quarter 2023 Consumer Results

Consumer revenue of $787 million increased 0.3% year-over-year as strong growth in fiber broadband was substantially offset by declines in copper products
Consumer fiber revenue of $479 million increased 13.0% year-over-year as growth in broadband, voice, and other offset declines in video
Consumer fiber broadband revenue of $340 million increased 22.3% year-over-year driven by growth in fiber broadband customers and ARPU
Consumer fiber broadband customer net additions of 75,000 resulted in consumer fiber broadband customer growth of 19.6% year-over-year
Consumer fiber broadband customer churn of 1.47% decreased from 1.60% in the third quarter of 2022
Consumer fiber broadband ARPU of $64.49 increased 2.4% year-over-year, due to increased customer in-take ARPU and annual price increases

Third-Quarter 2023 Business and Wholesale Results

Business and wholesale revenue of $634 million decreased 1.1% year-over-year as growth in fiber was offset by declines in copper
Business and wholesale fiber revenue of $281 million increased 5.2% year-over-year as growth in data and voice was partly offset by declines in other
Business fiber broadband customer net additions of 4,000 resulted in business fiber broadband customer growth of 12.5% year-over-year
Business fiber broadband customer churn of 1.26% decreased from 1.36% in the third quarter of 2022
Business fiber broadband ARPU of $101.36 decreased 5.5% year-over-year

Capital Structure³

At September 30, 2023, Frontier had total liquidity of $3.4 billion, including a cash and short-term investments balance of approximately $2.2 billion, $0.7 billion of available borrowing capacity on its revolving credit facility, and $0.5 billion of available borrowing capacity on its variable funding notes facility, subject to customary drawing conditions. Frontier's net leverage ratio on September 30, 2023 was approximately 4.3x. Frontier has no long-term debt maturities prior to 2027.

2023 Outlook⁴

Frontier today updated interest expense guidance, while reaffirming all other operational and financial expectations for 2023.

Frontier's guidance for the full year 2023 is:

Unchanged from Prior Guidance

Adjusted EBITDA of $2.11 - $2.16 billion
New fiber passings of 1.3 million
Cash capital expenditures of $3.00 - $3.20 billion
Cash taxes of approximately $20 million
Pension and OPEB expense of approximately $50 million (net of capitalization)
Cash pension and OPEB contributions of approximately $125 million

Changes to Guidance

Net cash interest payments of approximately $700 million, an increase from prior guidance of $655 million, reflecting the $1.6 billion of debt raised in August 2023

Conference Call Information

As previously announced, Frontier will host a conference call with the financial community to discuss third-quarter 2023 results today, November 1, 2023, beginning at 8:30 a.m. Eastern Time.

The conference call webcast and presentation materials are accessible through Frontier's Investor Relations website and will remain archived at this location.

About Frontier

Frontier (NASDAQ:FYBR) is the largest pure-play fiber provider in the U.S. Driven by our purpose, Building Gigabit America®, we deliver blazing-fast broadband connectivity that unlocks the potential of millions of consumers and businesses. For more information, visit www.frontier.com.

Non-GAAP Financial Measures

Frontier uses certain non-GAAP financial measures in evaluating its performance, including EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, operating free cash flow, adjusted operating expenses, and net leverage ratio, each of which is described below. Management uses these non-GAAP financial measures internally to (i) assist in analyzing Frontier's underlying financial performance from period to period, (ii) analyze and evaluate strategic and operational decisions, (iii) establish criteria for compensation decisions, and (iv) assist in the understanding of Frontier's ability to generate cash flow and, as a result, to plan for future capital and operational decisions. Management believes that the presentation of these non-GAAP financial measures provides useful information to investors regarding Frontier's financial condition and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) provide a more comprehensive view of Frontier's core operations and ability to generate cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation, and planning decisions, and (iii) present measurements that investors and rating agencies have indicated to management are useful to them in assessing Frontier and its results of operations.

A reconciliation of these measures to the most comparable financial measures calculated and presented in accordance with GAAP is included in the accompanying tables. These non-GAAP financial measures are not measures of financial performance or liquidity under GAAP, nor are they alternatives to GAAP measures, and they may not be comparable to similarly titled measures of other companies.

EBITDA is defined as net income (loss) less income tax expense (benefit), interest expense, investment and other income (loss), pension settlement costs, reorganization items, and depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by total revenue.

Adjusted EBITDA is defined as EBITDA, as described above, adjusted to exclude certain pension/OPEB expenses, restructuring costs and other charges, stock-based compensation, and certain other non-recurring items. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue.

Management uses EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin to assist it in comparing performance from period to period and as measures of operational performance. Management believes that these non-GAAP measures provide useful information for investors in evaluating Frontier's operational performance from period to period because they exclude depreciation and amortization expenses related to investments made in prior periods and are determined without regard to capital structure or investment activities. By excluding capital expenditures, debt repayments and dividends, among other factors, these non-GAAP financial measures have certain shortcomings. Management compensates for these shortcomings by utilizing these non-GAAP financial measures in conjunction with the comparable GAAP financial measures.

Management defines operating free cash flow as net cash provided from operating activities less capital expenditures. Management uses operating free cash flow to assist it in comparing liquidity from period to period and to obtain a more comprehensive view of Frontier's core operations and ability to generate cash flow. Management believes that this non-GAAP measure is useful to investors in evaluating cash available to service debt and pay dividends. This non-GAAP financial measure has certain shortcomings; it does not represent the residual cash flow available for discretionary expenditures, as items such as debt repayments are not deducted in determining such measure. Management compensates for these shortcomings by utilizing this non-GAAP financial measure in conjunction with the comparable GAAP financial measure.

Adjusted operating expenses is defined as operating expenses adjusted to exclude depreciation and amortization, restructuring and other charges, certain pension/OPEB expenses, stock-based compensation, and certain other non-recurring items. Investors have indicated that this non-GAAP measure is useful in evaluating Frontier's performance.

Net leverage ratio is calculated as net debt (total debt less cash and cash equivalents and short-term investments) divided by Adjusted EBITDA for the most recent four quarters. Investors have indicated that this non-GAAP measure is useful in evaluating Frontier's debt levels.

The information in this press release should be read in conjunction with the financial statements and footnotes contained in Frontier's documents filed with the U.S. Securities and Exchange Commission (the "SEC").

Forward-Looking Statements

This release contains "forward-looking statements" related to future events, including our 2023 outlook and guidance. Forward-looking statements address our expectations or beliefs concerning future events, including, without limitation, our outlook with respect to future operating and financial performance, expected results from our implementation of strategic and cost savings initiatives, planned financings, capital expenditures, taxes, pension and OPEB obligations, and our ability to comply with the covenants in the agreements governing our indebtedness and other matters. These statements are made on the basis of management's views and assumptions, as of the time the statements are made, regarding future events and performance and contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "may," "will," "would," or "target." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. A wide range of factors could materially affect future developments and performance, including but not limited to: our significant indebtedness, our ability to incur substantially more debt in the future, and covenants in the agreements governing our current indebtedness that may reduce our operating and financial flexibility; declines in Adjusted EBITDA relative to historical levels that we are unable to offset; economic uncertainty, volatility in financial markets, and rising interest rates could limit our ability to access capital or increase the cost of capital needed to fund business operations, including our fiber expansion plans; our ability to successfully implement strategic initiatives, including our fiber buildout and other initiatives to enhance revenue and realize productivity improvements; our ability to secure necessary construction resources, materials and permits for our fiber buildout initiative in a timely and cost-effective manner; inflationary pressures on costs, including tightening labor markets and increased fuel and electricity costs, and potential disruptions in our supply chain resulting from the global microchip shortage or otherwise, which could adversely impact our financial condition or results of operations and hinder our fiber expansion plans; our ability to effectively manage our operations, operating expenses, capital expenditures, debt service requirements and cash paid for income taxes and liquidity; the impact of potential information technology or data security breaches or other cyber-attacks or other disruptions; competition from cable, wireless and wireline carriers, satellite, fiber "overbuilders" and over the top companies, and the risk that we will not respond on a timely or profitable basis; our ability to successfully adjust to changes in the communications industry, including the effects of technological changes and competition on our capital expenditures, products and service offerings; our ability to retain or attract new customers and to maintain relationships with existing customers, including wholesale customers; our reliance on a limited number of key supplies and vendors; declines in revenue from our voice services, switched and nonswitched access and video and data services that we cannot stabilize or offset with increases in revenue from other products and services; our ability to secure, continue to use or renew intellectual property and other licenses used in our business; our ability to hire or retain key personnel; our ability to dispose of certain assets or asset groups or to make acquisition of certain assets on terms that are attractive to us, or at all; the effects of changes in the availability of federal and state universal service funding or other subsidies to us and our competitors and our ability to obtain future subsidies; our ability to comply with the applicable CAF II and RDOF requirements and the risk of penalties or obligations to return certain CAF II and RDOF funds; our ability to defend against litigation or government investigations and potentially unfavorable results from current pending and future litigation or investigations; our ability to comply with applicable federal and state consumer protection requirements; the effects of governmental legislation and regulation on our business, including costs, disruptions, possible limitations on operating flexibility and changes to the competitive landscape resulting from such legislation or regulation; the impact of regulatory, investigative and legal proceedings and legal compliance risks; our ability to effectively manage service quality in the states in which we operate and meet mandated service quality metrics or regulatory requirements; the effects of changes in income tax rates, tax laws, regulations or rulings, or federal or state tax assessments, including the risk that such changes may benefit our competitors more than us, as well as potential future decreases in the value of our deferred tax assets; the effects of changes in accounting policies or practices; our ability to successfully renegotiate union contracts; the effects of increased medical expenses and pension and postemployment expenses; changes in pension plan assumptions, interest rates, discount rates, regulatory rules and/or the value of our pension plan assets; the impact of adverse changes in economic, political and market conditions in the areas that we serve, the U.S. and globally, including but not limited to, disruption in our supply chain, inflation in pricing for key materials or labor, or other adverse changes resulting from epidemics, pandemics and outbreaks of contagious diseases, including the COVID-19 pandemic, natural disasters, economic or political instability, terrorist attacks and wars, including the ongoing war in Ukraine, or other adverse widespread developments; potential adverse impacts of climate change and increasingly stringent environmental laws, rules and regulations, and customer expectations and other environmental liabilities; market overhang due to substantial common stock holdings by our former creditors; certain provisions of Delaware law and our certificate of incorporation that may prevent efforts by our stockholders to change the direction or management of our company; and certain other factors set forth in our other filings with the SEC. This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative and is not intended to be exhaustive. You should consider these important factors, as well as the risks and other factors contained in Frontier's filings with the SEC, including our most recent reports on Form 10-K and Form 10-Q. These risks and uncertainties may cause actual future results to be materially different than those expressed in such forward-looking statements. We do not intend, nor do we undertake any duty, to update any forward-looking statements.


Frontier Communications Parent, Inc.
Unaudited Financial Data



	For the			For the			For the
	three months ended			three months ended			three months ended
	September 30,			June 30,			September 30,
($ in millions and shares in thousands, except per share amounts)	2023			2023			2022

Statements of Income Data
Revenue	$	1,436		$	1,449		$	1,444

Operating expenses:
Cost of service		545			528			544
Selling, general, and administrative expenses		405			428			431
Depreciation and amortization		356			354			296
Restructuring costs and other charges		16			24			4
Total operating expenses		1,322			1,334			1,275

Operating income		114			115			169

Investment and other income, net		67			32			211
Pension settlement costs		-			-			(50	)
Interest expense		(170	)		(149	)		(135	)

Income (loss) before income taxes		11			(2	)		195
Income tax expense		-			-			75

Net income (loss)	$	11		$	(2	)	$	120


Weighted average shares outstanding - basic		245,761			245,474			244,984
Weighted average shares outstanding - diluted		247,447			245,474			245,212


Basic net (loss) earnings per common share	$	0.05		$	(0.01	)	$	0.49
Diluted net (loss) earnings per common share	$	0.05		$	(0.01	)	$	0.49

Other Financial Data:
Capital expenditures	$	671		$	1,057		$	772


Frontier Communications Parent, Inc.
Unaudited Financial Data



	For the			For the
	nine months ended			nine months ended
	September 30,			September 30,
($ in millions and shares in thousands, except per share amounts)	2023			2022

Statements of Income Data
Revenue	$	4,325		$	4,350

Operating expenses:
Cost of service		1,615			1,643
Selling, general, and administrative expenses		1,250			1,293
Depreciation and amortization		1,040			870
Restructuring costs and other charges		48			88
Total operating expenses		3,953			3,894

Operating income		372			456

Investment and other income, net		101			410
Pension settlement costs		-			(50	)
Interest expense		(460	)		(356	)

Income before income taxes		13			460
Income tax expense		1			174
Net income	$	12		$	286

Weighted average shares outstanding - basic		245,431			244,711
Weighted average shares outstanding - diluted		247,336			245,080

Basic net earnings per common share	$	0.05		$	1.17
Diluted net earnings per common share	$	0.05		$	1.17

Other Financial Data:
Capital expenditures	$	2,882		$	1,860


Frontier Communications Parent, Inc.
Unaudited Financial Data


	For the quarter ended
	September 30,		June 30,		September 30,
($ in millions)	2023		2023		2022

Selected Statement of Income Data
Revenue:
Data and Internet services	$	895	$	880	$	848
Voice services		341		347		369
Video services		104		112		127
Other		81		89		82
Revenue from contracts with customers		1,421		1,428		1,426
Subsidy and other revenue		15		21		18
Total revenue	$	1,436	$	1,449	$	1,444

Other Financial Data
Revenue:
Consumer	$	787	$	775	$	785
Business and wholesale		634		653		641
Revenue from contracts with customers	$	1,421	$	1,428	$	1,426

Fiber	$	760	$	746	$	691
Copper		661		682		735
Revenue from contracts with customers	$	1,421	$	1,428	$	1,426


	For the nine months ended		For the nine months ended
	September 30,		September 30,
($ in millions)	2023		2022

Selected Statement of Income Data
Revenue:
Data and Internet services	$	2,637	$	2,531
Voice services		1,044		1,136
Video services		333		398
Other		253		245
Revenue from contracts with customers		4,267		4,310
Subsidy and other revenue		58		40
Total revenue	$	4,325	$	4,350

Other Financial Data
Revenue:
Consumer	$	2,323	$	2,352
Business and wholesale		1,944		1,958
Revenue from contracts with customers	$	4,267	$	4,310

Fiber	$	2,235	$	2,048
Copper		2,032		2,262
Revenue from contracts with customers	$	4,267	$	4,310


Frontier Communications Parent, Inc.
Unaudited Operating Data


	As of and for the three months ended									For the nine months ended
	September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022

Consumer customer metrics
Customers (in thousands)		3,118			3,127			3,142			3,118			3,142
Net customer additions (losses)		(9	)		(13	)		(17	)		(15	)		(23	)
Average monthly consumer
revenue per customer	$	83.99		$	82.48		$	83.05		$	82.49		$	82.68
Customer monthly churn		1.70	%		1.53	%		1.76	%		1.55	%		1.55	%

Broadband customer metrics ⁽¹⁾
Broadband customers (in thousands)		2,881			2,865			2,831			2,881			2,831
Net customer additions		16			2			4			42			32

Employees		13,756			14,099			14,746			13,756			14,746

⁽¹⁾ Amounts presented exclude related metrics for our wholesale customers.


Frontier Communications Parent, Inc.
Condensed Consolidated Balance Sheet Data


	(Unaudited)
($ in millions)	September 30, 2023			December 31, 2022

ASSETS
Current assets:
Cash and cash equivalents	$	948		$	322
Short-term investments		1,275			1,750
Accounts receivable, net		449			438
Other current assets		126			87
Total current assets		2,798			2,597

Property, plant and equipment, net		13,621			11,850
Other assets		4,090			4,177
Total assets	$	20,509		$	18,624

LIABILITIES AND EQUITY
Current liabilities:
Long-term debt due within one year	$	15		$	15
Accounts payable and other current liabilities		2,036			2,280
Total current liabilities		2,051			2,295

Deferred income taxes and other liabilities		1,960			2,085
Long-term debt		11,258			9,110
Equity		5,240			5,134
Total liabilities and equity	$	20,509		$	18,624


	As of
	September 30, 2023
Leverage Ratio
Numerator:
Long-term debt due within one year	$	15
Long-term debt		11,258
Total debt	$	11,273
Less: Cash and cash equivalents		(948	)
Short-term investments		(1,275	)
Net debt	$	9,050

Denominator:
Adjusted EBITDA - last 4 quarters	$	2,106

Net Leverage Ratio		4.3x



Frontier Communications Parent, Inc.
Unaudited Consolidated Cash Flow Data



	For the three			For the three
	months ended			months ended
	September 30, 2023			September 30, 2022
($ in millions)

Cash flows provided from (used by) operating activities:
Net income	$	11		$	120
Adjustments to reconcile net loss to net cash provided from
(used by) operating activities:
Depreciation and amortization		356			296
Pension settlement costs		-			50
Stock-based compensation		30			19
Amortization of premium		(6	)		(7	)
Bad debt expense		8			5
Other adjustments		7			-
Deferred income taxes		(1	)		74
Change in accounts receivable		(26	)		(8	)
Change in long-term pension and other postretirement liabilities		(98	)		(285	)
Change in accounts payable and other liabilities		113			17
Change in prepaid expenses, income taxes, and other assets		(11	)		3
Net cash provided from operating activities		383			284

Cash flows provided from (used by) investing activities:
Capital expenditures		(671	)		(772	)
Purchases of short-term investments ⁽¹⁾		(1,275	)		(625	)
Sale of short-term investments ⁽¹⁾		575			600
Purchases of long-term investments		(63	)		-
Proceeds from sale of asset		14			3
Other		1			1
Net cash used by investing activities		(1,419	)		(793	)

Cash flows provided from (used by) financing activities:
Long-term debt payments		(56	)		(4	)
Proceeds from long-term debt borrowings		1,528			-
Premium paid to retire debt		(10	)		-
Proceeds from financing lease transactions		21			-
Financing costs paid		(43	)		-
Finance lease obligation payments		(6	)		(5	)
Taxes paid on behalf of employees for shares withheld		(2	)		-
Proceeds from sale and lease-back transactions		-			70
Other		(4	)		-
Net cash provided from (used by) financing activities		1,428			61

Increase (Decrease) in cash, cash equivalents, and restricted cash		392			(448	)
Cash, cash equivalents, and restricted cash at the beginning of the period		662			708

Cash, cash equivalents, and restricted cash at the end of the period	$	1,054		$	260

Supplemental cash flow information:
Cash paid during the period for:
Interest	$	135		$	88
Income tax payments, net	$	-		$	(2	)

⁽¹⁾ Amounts represent cash movement to/from short-term investments. Given the long-term nature of the fiber build, we have invested cash in short-term investments to improve interest income while preserving funding flexibility.


Frontier Communications Parent, Inc.
Unaudited Consolidated Cash Flow Data



	For the nine months ended			For the nine months ended
	September 30, 2023			September 30, 2022
($ in millions)

Cash flows provided from (used by) operating activities:
Net income	$	12		$	286
Adjustments to reconcile net loss to net cash provided from
(used by) operating activities:
Depreciation and amortization		1,040			870
Pension settlement costs		-			50
Stock-based compensation		81			54
Amortization of (premium) discount		(21	)		(21	)
Lease impairment		-			44
Bad debt expense		24			19
Other adjustments		9			1
Deferred income taxes		(1	)		167
Change in accounts receivable		(35	)		16
Change in long-term pension and other postretirement liabilities		(149	)		(527	)
Change in accounts payable and other liabilities		101			94
Change in prepaid expenses, income taxes, and other assets		(13	)		(12	)
Net cash provided from operating activities		1,048			1,041

Cash flows provided from (used by) investing activities:
Capital expenditures		(2,882	)		(1,860	)
Purchases of short-term investments ⁽¹⁾		(1,850	)		(3,225	)
Sale of short-term investments ⁽¹⁾		2,325			900
Purchases of long-term investments		(63	)		-
Proceeds on sale of assets		18			4
Other		1			3
Net cash used by investing activities		(2,451	)		(4,178	)

Cash flows provided from (used by) financing activities:
Long-term debt payments		(64	)		(11	)
Proceeds from long-term debt borrowings		2,278			1,200
Premium paid to retire debt		(10	)		-
Proceeds from financing lease transactions		(56	)		-
Financing costs paid		21			(17	)
Finance lease obligation payments		(18	)		(15	)
Proceeds from sale and lease-back transactions		-			70
Taxes paid on behalf of employees for shares withheld		(9	)		(7	)
Other		(7	)		(1	)
Net cash provided from financing activities		2,135			1,219

Increase (Decrease) in cash, cash equivalents, and restricted cash		732			(1,918	)
Cash, cash equivalents, and restricted cash at the beginning of the period		322			2,178

Cash, cash equivalents, and restricted cash at the end of the period	$	1,054		$	260

Supplemental cash flow information:
Cash paid during the period for:
Interest	$	449		$	286
Income tax payments, net	$	1		$	7

⁽¹⁾ Amounts represent cash movement to/from short-term investments. Given the long-term nature of the fiber build, we have invested cash in short-term investments to improve interest income while preserving funding flexibility.


SCHEDULE A
Frontier Communications Parent, Inc.
Unaudited Financial Data
Reconciliation of Non-GAAP Financial Measures



	For the three months ended									For the nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
($ in millions)	2023			2023			2022			2023			2022



Net income (loss)	$	11		$	(2	)	$	120		$	12		$	286
Add back (subtract):
Income tax expense		-			-			75			1			174
Interest expense		170			149			135			460			356
Investment and other income, net		(67	)		(32	)		(211	)		(101	)		(410	)
Pension settlement costs		-			-			50			-			50
Operating income		114			115			169			372			456
Depreciation and amortization		356			354			296			1,040			870
EBITDA	$	470		$	469		$	465		$	1,412		$	1,326

Add back:
Pension/OPEB expense	$	9		$	11		$	13		$	31		$	50
Restructuring costs and other charges ⁽¹⁾		16			24			4			48			88
Rebranding costs		-			-			7			-			26
Stock-based compensation		30			27			19			81			54
Storm-related costs		1			2			-			6			-
Legal settlements		-			-			-			-			8
Adjusted EBITDA	$	526		$	533		$	508		$	1,578		$	1,552

EBITDA margin		32.7	%		32.4	%		32.2	%		32.6	%		30.5	%
Adjusted EBITDA margin		36.6	%		36.8	%		35.2	%		36.5	%		35.7	%

*Free Cash Flow*
Net cash provided from
operating activities	$	383		$	276		$	284		$	1,048		$	1,041
Capital expenditures		(671	)		(1,057	)		(772	)		(2,882	)		(1,860	)
Operating free cash flow	$	(288	)	$	(781	)	$	(488	)	$	(1,834	)	$	(819	)

⁽¹⁾Includes$44 million of lease impairment charges for the nine months ended September 30, 2022.


SCHEDULE B
Frontier Communications Parent, Inc.
Unaudited Consolidated Financial Data
Reconciliation of Non-GAAP Financial Measures


	For the three months ended						For the nine months ended
	September 30,		June 30,		September 30,		September 30,		September 30,
($ in millions)	2023		2023		2022		2023		2022
Adjusted Operating Expenses


Total operating expenses	$	1,322	$	1,334	$	1,275	$	3,953	$	3,894

Subtract:
Depreciation and amortization		356		354		296		1,040		870
Pension/OPEB expense		9		11		13		31		50
Restructuring costs and other charges ⁽¹⁾		16		24		4		48		88
Rebranding costs		-		-		7		-		26
Stock-based compensation		30		27		19		81		54
Storm-related costs		1		2		-		6		-
Legal settlements		-		-		-		-		8
Adjusted operating expenses	$	910	$	916	$	936	$	2,747	$	2,798

⁽¹⁾Includes$44 million of lease impairment charges for the nine months ended September 30, 2022.


SCHEDULE C
Frontier Communications Parent, Inc.
Selected Financial and Operating Data
(Unaudited)


			As of or for the quarter ended									For the nine months ended
			September 30, 2023			June 30, 2023			September 30, 2022			September 30, 2023		September 30, 2022

Broadband Revenue ($ in millions)
	Total Company	Fiber	$	377		$	356		$	312		$	1,067	$	900
		Copper		169			173			195			515		587
		Total	$	546		$	529		$	507		$	1,582	$	1,487

Estimated Fiber Passings (in millions)
	Base Fiber Passings			3.2			3.2			3.2
	Total Fiber Passings			6.2			5.8			4.8

Estimated Broadband Fiber % Penetration
	Base Fiber Penetration			43.9	%		43.4	%		42.9	%
	Total Fiber Penetration			31.2	%		31.6	%		33.6	%

Broadband Customers, end of period (in thousands)
	Consumer	Fiber		1,797			1,722			1,502
		Copper		870			928			1,105
		Total		2,667			2,650			2,607

	Business ⁽¹⁾	Fiber		117			113			104
		Copper		97			102			120
		Total		214			215			224

Broadband Net Adds (in thousands)
	Consumer	Fiber		75			63			64
		Copper		(58	)		(59	)		(58	)
		Total		17			4			6

	Business ⁽¹⁾	Fiber		4			3			2