Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — CenturyLink — Q2 2019 Earnings Presentation
14 slides from Lumen Technologies's earnings presentation, Aug 7, 2019
Slide 1: 2nd Quarter 2019 Results
2nd Quarter 2019 Results Aug 7, 2019 Issued: Aug 7, 2019
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, and adjustments to GAAP and non- GAAP measures to exclude the effect of special items. In addition to pr
Slide 4: CenturyLink's Robust Fiber Network
CenturyLink’s Robust Fiber Network 4 Issued: Aug 7, 2019
Slide 5: CenturyLink's Ultra-Low-Loss Fiber Network
CenturyLink’s Ultra-Low-Loss Fiber Network 5 Issued: Aug 7, 2019
Slide 6: Edge Compute Network | Large Enterprise Customer Example
Edge Compute Network | Large Enterprise Customer Example Pins on this map represent ~2,000 U.S. locations of a global enterprise customer Approximately 95% of these customer locations have 5ms coverage with CenturyLink Edge Compute Nodes 6 Issued: Aug 7, 2019
Slide 7: Financial Highlights
Financial Highlights • Generated Adjusted EBITDA(1) of $2.269 billion for 2Q19 • Expanded Adjusted EBITDA(1) margin to 40.7% from 35.5% since the close of the Level 3 transaction • Achieved $290 million of annualized run-rate Adjusted EBITDA cost savings from Transformation Efforts • Reiterated Full
Slide 8: 2Q19 Revenue
2Q19 Revenue SMB 18% Enterprise Revenue YoY % QoQ % 2Q19 ($ in millions) Change Change 36% 24% International & GAM $902 (0.1%) 1.2% Enterprise $1,505 (1.2%) (1.2%) Wholesale SMB $736 (10%) (2.5%) Wholesale $1,018 (8.8%) (1.8%) 22% iGAM 8 Issued: Aug 7, 2019
Slide 9: 2Q19 Product Revenue Mix by Business Segment
2Q19 Product Revenue Mix by Business Segment iGAM Enterprise 6% 4% 10% Legend 26% IP and Data 47% 45% Services 37% Transport and 25% Infrastructure Voice and Collaboration SMB Wholesale 2% IT and Managed Services 45% 19% 33% 39% 48% 14% 9 Issued: Aug 7, 2019
Slide 10: 2Q19 Consumer Metrics
2Q19 Consumer Metrics Consumer Broadband Revenue YoY % QoQ % 2Q19 Performance 2Q19 ($ in millions) Change Change (in thousands) Broadband $718 1.8% (0.6%) Total Subscribers 4,750 Voice $477 (13%) (2.5%) Subscriber Quarterly Net Change (56) Regulatory $158 (15%) (0.6%) Below 20 Mbps (78) Other(1) $64
Slide 11: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA & Adjusted EBITDA Margin(1) ($ in billions) $5.902 $5.818 $5.778 $5.647 $5.578 40.7% 39.8% 40.1% 39.3% Expanded Adjusted EBITDA margin 38.5% • 520 basis-point improvement since the close of the Level 3 transaction $2.271 $2.287 $2.301 $2.262 $2.269 2Q18 3Q18 4Q18 1Q19
Slide 12: Capital Expenditures & Free Cash Flow
Capital Expenditures & Free Cash Flow Capital Expenditures Free Cash Flow(1) ($ in millions) ($ in millions) $800 $771 $956 $919 2Q18 2Q19 2Q18 2Q19 (1) 2Q18 and 2Q19 Free Cash Flow excludes cash paid for Integration and Transformation Costs and Special Items of $108 million and $55 million, respect
Slide 13: Leverage | Net Debt to Adjusted EBITDA
Leverage | Net Debt to Adjusted EBITDA 4.2x 4.1x 4.0x 3.9x 3.8x • Net debt reduced by approximately $700 million in 2Q19 • Continued progress on deleveraging objective and reaching target leverage range of 2.75x-3.25x 2Q18 3Q18 4Q18 1Q19 2Q19 13 Issued: Aug 7, 2019
Slide 14: Reiterated 2019 Business Outlook
Reiterated 2019 Business Outlook Metric(1)(2) Outlook Adjusted EBITDA $9.0 to $9.2 billion Free Cash Flow $3.1 to $3.4 billion Dividends(3)(4) $1.095 billion Free Cash Flow after Dividends(4) $2.005 billion to $2.305 billion GAAP Interest Expense $2.1 billion Cash Interest $2.05 to $2.10 billion Cap