Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — CenturyLink — Q3 2018 Earnings Presentation
9 slides from Lumen Technologies's earnings presentation, Nov 8, 2018
Slide 1: 3rd Quarter 2018 Results
3rd Quarter 2018 Results November 8, 2018 © 2018 CenturyLink. All Rights Reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” and similar expressions are forward-look
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain non-GAAP historical and forward-looking financial measures, including but not limited to adjusted EBITDA, free cash flow, unlevered cash flow, pro forma financial data and adjustments to GAAP measures to exclude the effect of special items. In add
Slide 4: Financial Highlights
3Q18 Financial Highlights • Captured approximately $790 million of annualized run-rate Adjusted EBITDA synergies since the close of the Level 3 transaction • Generated Adjusted EBITDA(1) of $2.29 billion • Expanded Adjusted EBITDA(1)(2) margin to 39.3% from 35.5% • Generated Free Cash Flow(3) of $1.
Slide 5: 3Q18 Revenue by Business Unit
3Q18 Revenue by Business Unit YoY % Revenue YoY % Change Revenue 3Q18 ($ in millions) Change(1) (Excluding ASC- Mix 606) Consumer Broadband Business Unit Performance 3Q18 Medium & Small (in thousands) $860 (4.0%) (4.4%) 15% Enterprise $1,278 (2.5%) (2.3%) 22% International & GAM $892 (2.8%) (3.4%) 1
Slide 6: 3Q18 Revenue Mix by Service Type
3Q18 Revenue Mix by Service Type Transport & Infrastructure Revenue ($ in millions) 3Q18 YoY % Change(1) 35% Service Type IP and Data Services $1,796 (0.3%) Transport and Infrastructure $2,051 (1.9%) Voice & 28% Collaboration Voice and Collaboration $1,640 (8.4%) IT and Managed Services $153 (7.3%)
Slide 7: 3Q18 Adjusted EBITDA & Free Cash Flow
3Q18 Adjusted EBITDA & Free Cash Flow Adjusted EBITDA(1)(2) Free Cash Flow(3)(4) ($ in millions) ($ in millions) $2,287 $1,163 39.3% $600 $2,140 35.5% 3Q17 PF 3Q18 3Q17 PF 3Q18 Adjusted EBITDA Adjusted EBITDA Margin 1) 3Q18 Adjusted EBITDA results exclude $59 million of integration-related expenses
Slide 8: Integration Synergies and Expenses
Integration Synergies and Expenses Metric ($ in millions) 3Q18 • Expect to achieve targeted $850 million run-rate Adjusted EBITDA synergies Annualized Run-Rate before the end of the year Adjusted EBITDA Synergies $790 • Transitioning from Synergy Savings to Cost Transformation Savings Integration-Re
Slide 9: 2018 Business Outlook
2018 Business Outlook Metric(1)(2) Updated Outlook Previous Outlook Adjusted EBITDA $9.00 to $9.15 billion $9.00 to $9.15 billion Free Cash Flow $4.00 to $4.20 billion $3.60 to $3.80 billion Dividends(3) $2.30 billion $2.30 billion Free Cash Flow after Dividends $1.70 billion to $1.90 billion $1.30