Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — CenturyLink — Q1 2019 Earnings Presentation
11 slides from Lumen Technologies's earnings presentation, May 8, 2019
Slide 1: 1st Quarter 2019 Results
1st Quarter 2019 Results May 8, 2019 Issued: May 8, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical and factual information, the matters set forth in this release and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” and similar expressions are forward-looking s
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 measures to exclude the effect of special items. In addition to providing key me
Slide 4: CenturyLink's Robust Fiber Network
CenturyLink’s Robust Fiber Network 4 Issued: May 8, 2019
Slide 5: Financial Highlights
Financial Highlights • Generated Adjusted EBITDA(1) of $2.262 billion for 1Q19 • Expanded Adjusted EBITDA(1) margin to 40.1% from 35.5% since the close of the Level 3 transaction • Achieved $128 million of annualized run-rate Adjusted EBITDA cost savings from Transformation Efforts • Reiterated Full
Slide 6: 1Q19 Revenue
1Q19 Revenue SMB 18% Enterprise Revenue YoY % QoQ % 1Q19 ($ in millions) Change Change 36% 25% International & GAM $891 (4.7%) (3.5%) Enterprise $1,523 (1.6%) (2.2%) Wholesale SMB $755 (3.8%) (0.1%) Wholesale $1,037 (6.5%) (3.4%) 21% iGAM 6 Issued: May 8, 2019
Slide 7: 1Q19 Consumer Metrics
1Q19 Consumer Metrics Consumer Broadband Revenue YoY % QoQ % 1Q19 Performance 1Q19 ($ in millions) Change Change (in thousands) Broadband $722 1.3% 2.7% Total Subscribers 4,806 Voice $489 (12%) (3.2%) Subscriber Quarterly Net Change (6) Regulatory $159 (13%) (11%) Below 20 Mbps (83) Other(1) $71 (39
Slide 8: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA & Adjusted EBITDA Margin(1) ($ in billions) $5.945 $5.902 $5.818 $5.778 $5.647 • Expanded Adjusted EBITDA margin 40.1% 39.3% 39.8% •460 basis-point improvement since the 38.5% close of the Level 3 transaction 36.7% • Remain focused on growing Adjusted EBITDA and expan
Slide 9: Capital Expenditures & Free Cash Flow
Capital Expenditures & Free Cash Flow Capital Expenditures Free Cash Flow(1) ($ in millions) ($ in millions) $931 $941 $805 $315 1Q18 1Q19 1Q18 1Q19 1) 1Q18 Free Cash Flow excludes cash paid for integration costs of $79 million, 1Q19 Free Cash Flow excludes cash paid for integration and transformati
Slide 10: Leverage | Net Debt to Adjusted EBITDA
Leverage | Net Debt to Adjusted EBITDA 4.3x 4.2x 4.1x 4.0x 3.9x • Focused on deleveraging objectives and reaching our target leverage range of 2.75x-3.25x • Expect to reach target range in approximately 3 years 1Q18 2Q18 3Q18 4Q18 1Q19 10 Issued: May 8, 2019
Slide 11: 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) $1.075 billion Free Cash Flow after Dividends $2.025 billion to $2.325 billion GAAP Interest Expense $2.1 billion Cash Interest $2.05 to $2.10 billion Capital E