Frontier Communications Corp.'s board suspended the quarterly cash dividend on the company’s common stock beginning with the first quarter.
The dividend suspension will allow the company to reallocate about $250 million annually, following the conversion of the company's 11.125% mandatory convertible series A preferred stock to common stock in June 2018, Frontier said in a Feb. 27 earnings release.
The board declared a regular quarterly dividend on the convertible series A preferred stock of $2.78125 per share, payable in cash March 30 to holders of record at the close of business on March 15.
"For 2018, we remain committed to enhancing the customer experience, further improving churn, maintaining strong cash flow, and strengthening the balance sheet as we pursue further stabilization of the business and growth longer-term," President and CEO Dan McCarthy said in a statement.
Frontier Communications posted fourth-quarter 2017 consolidated revenues of $2.22 billion, down from $8.90 billion a year ago. Net loss attributable to Frontier common shareholders jumped to $1.08 billion, or $13.91 per share, from $587 million, or $7.61 per share, in the year-ago period.
The net loss included a $1.82 billion after tax goodwill impairment, partially offset by an $830 million benefit from the recent reduction in federal tax rates, the company noted.