Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — CenturyLink — Q4 2018 Earnings Presentation
11 slides from Lumen Technologies's earnings presentation, Feb 13, 2019
Slide 1: 4th Quarter 2018 Results
4th Quarter 2018 Results February 13, 2019 Issued: February 13, 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, pro forma financial data and adjustments to GAAP measures to exclude the effect of special items. In add
Slide 4: Expansive Network Assets
Expansive Network Assets Global & National Deep & Dense Expansive 37 State Long-haul Footprint Metro Footprint LEC Footprint 4 Issued: February 13, 2019
Slide 5: Financial Highlights
Financial Highlights • Generated Adjusted EBITDA(1) of $9.040 billion for FY2018 • Expanded Adjusted EBITDA(1)(2) margin to 39.8% from 35.5% since the close of the Level 3 transaction • Generated Free Cash Flow(3) of $4.215 billion • Achieved targeted $850 million of annualized run-rate Adjusted EBI
Slide 6: 4Q18 Revenue by Business Unit
4Q18 Revenue by Business Unit YoY % QoQ % Revenue YoY % Change Change 4Q18 ($ in millions) Change(1) (Excluding ASC- (Excluding ASC- 606) 606) Consumer Broadband Business Unit Performance 4Q18 Medium & Small (in thousands) $825 (5.6%) (4.7%) (2.8%) Enterprise $1,329 0.4% (0.1%) 3.3% International &
Slide 7: FY18 Free Cash Flow
FY18 Free Cash Flow Adjusted EBITDA(1)(2) Free Cash Flow(3)(4) ($ in millions) ($ in millions) $9,040 $4,215 $8,686 38.6% $2,034 36.0% FY17 FY18 FY17 FY18 Adjusted EBITDA Adjusted EBITDA Margin 1) FY18 Adjusted EBITDA results exclude $438 million of transaction and integration-related expenses and s
Slide 8: Leverage | Net Debt to Adjusted EBITDA
Leverage | Net Debt to Adjusted EBITDA • Capital allocation plan 4.3x 4.3x 4.2x 4.1x supports disciplined 4.0x deleveraging over the next 3 years • Narrowing and lowering leverage range to 2.75x-3.25x from 3x-4x • Expect to reach target range in approximately 3 years 4Q17 1Q18 2Q18 3Q18 4Q18 Note: P
Slide 9: 2019 Reporting Changes (Business Unit)
2019 Reporting Changes (Business Unit) Previous New 2018 Reporting Structure 2019 Reporting Structure Revenue 4Q18 Revenue 4Q18 ($ in millions) ($ in millions) Business Unit Business Unit Medium & Small $825 Small & Medium $773 Enterprise $1,329 Enterprise $1,543 International & International & Glob
Slide 10: 2019 Reporting Changes (Service Type)
2019 Reporting Changes (Service Type) New 2019 Reporting Structure Previous Business 4Q18 2018 Reporting Structure Service Type ($ in millions) Revenue ($ in millions) 4Q18 IP and Data Services $1,758 Service Type Transport and Infrastructure $1,354 IP and Data Services $1,818 Voice and Collaboratio
Slide 11: 2019 Business Outlook
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 Expenditures