Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — CenturyLink — Q1 2017 Earnings Presentation
13 slides from Lumen Technologies's earnings presentation, May 3, 2017
Slide 1: 1st Quarter 2017 Earnings Results
1st Quarter 2017 Earnings Results May 3, 2017 © 2015 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 operating cash flow, free cash flow, core revenues, adjusted net income, adjusted diluted EPS and adjustments to GAAP measures to exclude the effect of specia
Slide 4: Participants
Participants Glen Post Chief Executive Officer & President Stewart Ewing Executive Vice President & Chief Financial Officer Dean Douglas President, Enterprise Markets Maxine Moreau President, Consumer Markets 4 © 2015 CenturyLink. All Rights Reserved.
Slide 5: Financial & Strategic Overview
Financial & Strategic Overview Glen Post Chief Executive Officer & President © 2015 CenturyLink. All Rights Reserved.
Slide 6: 1Q17 Highlights & Trends
1Q17 Highlights & Trends Strategic services Core Revenues ($MM) 1Q17 1Q16 % Chg ◦ Enterprise high-bandwidth data - Enterprise high-bandwidth improved revenue growth trend; grew data services $769 $738 4.2% 6.5% Y/Y on a normalized basis ◦ IT & Managed services - growth in IT IT & Managed services 15
Slide 7: Transaction Updates
Transaction Updates • Completed sale of data centers and colocation business on May 1, 2017 ◦ Retained managed hosting and cloud assets; continue to offer colocation services through strategic relationship with Cyxtera ◦ Expect to use after-tax net cash proceeds of ~$1.75 billion to partly fund Leve
Slide 8: 1Q Results & Guidance Overview
1Q Results & Guidance Overview Stewart Ewing Executive Vice President & Chief Financial Officer © 2015 CenturyLink. All Rights Reserved.
Slide 9: 1Q17 Financial Summary
1Q17 Financial Summary • $4.21 billion in Total revenue Core Revenue ($B) • $3.80 billion Core revenue1, 4.4% Y/Y decrease from 1Q16 $3.98 $3.86 $3.80 • $2.00 billion Strategic revenue2, 0.6% Y/Y $1.99 $1.85 $1.80 increase from 1Q16 • $1.80 billion Legacy revenue2, a 9.3% Y/Y $1.99 $2.02 $2.00 decre
Slide 10: Enterprise Segment
Enterprise Segment Enterprise - Operating Revenue Data Integration; $ in millions 5% Other Legacy services; High-bandwidth Data 11% services; 33% $2,442 $2,355 Data $115 Integration $117 Legacy $1,274 $1,155 Legacy Voice services; 24% $1,084 Other Strategic Strategic $1,053 services; 13% Low-bandwid
Slide 11: Consumer Segment
Consumer Segment Consumer - Operating Revenue Other Legacy $ in millions services; 5% $1,489 $1,412 Broadband services; 47% Legacy $714 $648 Legacy voice services; 41% Strategic $774 $764 Other Strategic services; 7% 1Q16 1Q17 • Total revenue decline of 5.2% Y/Y ◦ Strategic revenue decreased 1.3% Y/
Slide 12: Guidance
Guidance 2nd Quarter 2017(1) Operating Revenue $4.07 to $4.13 billion Core Revenue $3.66 to $3.72 billion Operating Cash Flow $1.40 to $1.46 billion Adjusted Diluted EPS $0.46 to $0.52 12 © 2015 CenturyLink. All Rights Reserved. (1) Second quarter 2017 guidance excludes special items.
Slide 13: Q&A
Q&A © 2015 CenturyLink. All Rights Reserved.