Frontier Communications said in a notification on Tuesday that its 10-K filing for fiscal 2019 with the Securities and Exchange Commission would be late. Frontier did release anemic preliminary results for last year on Tuesday, which could be subject to change once it completes its actual filing.
Among those results, total revenues for the year ended Dec. 31, 2019, came to $8.1 billion, which was down almost 6% compared to revenues of $8.6 billion in 2018. Frontier's net loss last year ballooned to close to $6 billion compared to a loss of $750 million in 2018. Frontier's earnings per share were a negative $56.80 compared to 2018's -$8.37. Frontier's stock opened at 24 cents per share Thursday morning.
Frontier said its consumer revenue was approximately $3.5 billion in 2019 versus $4.3 billion two years ago. Commercial revenue was $3.5 billion compared to $3.8 billion in 2018 while subsidy revenue declined from $383 million in 2018 to $369 million last year.
In its notification of late filing, Frontier cited negotiations with some of the note holders of its unsecured notes in regard to restructuring or Chapter 11 bankruptcy as the reasons for the delay in reporting its results.
"The Company’s financial, accounting and administrative personnel have been supporting these negotiations and have been focused on maintaining the Company’s ongoing operations and implementing operational reviews and initiatives," Frontier said its notification. "These negotiations and activities involve significant resources, place increased burdens on the company’s management and staff and occurred at the time during which year-end close procedures are normally conducted."
Frontier Communications announced on Monday that it would defer making the interest payments due on Monday on some of its senior unsecured notes. Instead, Frontier said it would enter a 60-day grace period as it continues talks with its bondholders regarding its capital structure.
Frontier is working with advisors and creditors to find solutions to address its $17.5 billion debt. A group of creditors, including Elliott Management and Franklin Resources, hold close to 50% of Frontier's bonds.
While there have been reports that Frontier would file for bankruptcy this month, it has also been reported that it's now looking at doing so before April 15. Frontier has interest payments due April 1, which could also be subject to a 30-day grace period, and there are $172 million worth of notes maturing on April 15, but those don't have the 30-day grace period for maturing notes.