Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — CenturyLink — Q1 2018 Earnings Presentation
11 slides from Lumen Technologies's earnings presentation, May 9, 2018
Slide 1: 1st Quarter 2018 Results
1st Quarter 2018 Results May 9, 2018 © 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 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 met
Slide 4: Participants
Participants Glen Post Chief Executive Officer Sunit Patel Executive Vice President & Chief Financial Officer Jeff Storey President & Chief Operating Officer 4 © 2015 CenturyLink. All Rights Reserved.
Slide 5: Financial Highlights
Financial Highlights • Reiterated Adjusted EBITDA and Free Cash Flow outlook for the full year 2018 • Generated Adjusted EBITDA1,2, excluding integration-related and special items, of $2.18 billion • Generated Free Cash Flow1,3 of $941 million, excluding integration-related and special items • Achie
Slide 6: Revenues by Business Unit
Revenues by Business Unit Revenues Y/Y % Revenue 1Q18 ($ in millions) Change1 Mix By Business Unit Excluding the 1Q18 impact of the Medium & small business $860 (4.6)% 15% Revenue Recognition Standard ASC 606 Enterprise 1,315 1.8% 22% Y/Y: International & global accounts 937 5.2% 16% ▪ Total revenue
Slide 7: Revenues by Service Type
Revenues by Service Type Revenue Mix by Service Type Revenues Y/Y % 1Q18 IT & Managed ($ in millions) Change1 Voice & Services: 3% By Service Type Collaboration: 27% Regulatory: 3% IP & data services $1,845 1.4% Transport & infrastructure 2,118 1.2% Voice & collaboration 1,637 (9.7)% IP & Data IT &
Slide 8: Adjusted EBITDA & Free Cash Flow
Adjusted EBITDA & Free Cash Flow Adjusted EBITDA(1) (2) Free Cash Flow(1) (3) ($ in millions) ($ in millions) $2,181 $2,181 $941 36.7% 36.0% $471 1Q17 Pro forma 1Q18 1Q17 Pro forma 1Q18 Adjusted EBITDA Adjusted EBITDA Margin Net Debt to LTM Adjusted EBITDA Ratio(4) 4.3x (1) See schedule of non-GAAP
Slide 9: Integration Synergies & Expenses
Integration Synergies & Expenses Metric 4Q17 1Q18 Total ($ in millions) Annualized run-rate Adjusted EBITDA synergies $75 $140 $215 Integration-related expenses 1 $62 $71 $241 $850 million of expected annualized run-rate Adjusted EBITDA savings (1) ©Includes integration-related expenses impacting Ad
Slide 10: 2018 Business Outlook
2018 Business Outlook Metric (1) Outlook Adjusted EBITDA (2) $8.75 to $8.95 billion Free Cash Flow (3) $3.15 to $3.35 billion Dividends (4) $2.30 billion Free Cash Flow after Dividends $850 million to $1.05 billion GAAP Interest Expense $2.25 billion Cash Interest $2.10 billion Capital Expenditures
Slide 11: Q&A
Q&A © 2015 CenturyLink. All Rights Reserved.