DENVER, May 14, 2024 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) ("Lumen"), a global integrated network solutions provider that unleashes the world's digital potential, today announced that Kate Johnson, Lumen's president and chief executive officer, will present at the 52nd Annual J.P. Morgan Global Technology, Media and Communications Conference on May 21, 2024. The presentation is scheduled to begin at 10:10 a.m. ET. A live webcast link to the investor presentation will be made available on the Lumen ...

 Ho to Succeed Veteran Executive Stacey Goff DENVER, May 6, 2024 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) today announced it has appointed Chad Ho as executive vice president and chief legal officer. His appointment will begin in June. He succeeds Stacey Goff, whose legacy includes a distinguished 26-year career with Lumen and its predecessors. We anticipate that Mr. Goff will remain with the company for a few weeks after Mr. Ho's appointment to ensure a smooth transition.  Ho is an experienced chief ...

Lumen Technologies, Inc (LUMN) reported an adjusted loss (excluding special items) of 4 cents per share for first-quarter 2024. In the prior-year quarter, the company reported adjusted earnings per share of 10 cents. The bottom line missed the Zacks Consensus Estimate of a loss of 3 cents.Quarterly total revenues were $3.290 billion, down 12% year over year on a reported basis. Revenues for the year-ago quarter include $139 million from the EMEA business divested, which will not recur in periods following t ...

Lumen Defender uses Black Lotus Labs' threat intelligence to proactively stop attacks at the network edge  DENVER, May 1, 2024 /PRNewswire/ -- To combat the growing number of cyberattacks targeting business networks, Lumen Technologies (NYSE: LUMN) is unveiling a new threat defense tool driven by Artificial Intelligence (AI)/Machine Learning (ML). Lumen DefenderSM powered by Black Lotus Labs® is a patented product that proactively blocks evolving threats at the network edge, before they can compromise a bu ...

For the quarter ended March 2024, Lumen (LUMN) reported revenue of $3.29 billion, down 12% over the same period last year. EPS came in at -$0.04, compared to $0.10 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.39 billion, representing a surprise of -3.00%. The company delivered an EPS surprise of -33.33%, with the consensus EPS estimate being -$0.03.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

LUMEN® 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," "will," and similar expressions are forward-looking statements as defined by the federal securities laws, and are subject to the "safe harbor" protections thereunder. These forward-looking statements are not guarantees of future results and are based on current expectatio ...

Part I. Financial Information [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Lumen Technologies reported Q1 2024 operating revenue of $3.29 billion, net income of $57 million, and $1.1 billion in operating cash flow, reflecting a decline in revenue but improved cash generation [Note 1: Background and Accounting Policies](index=12&type=section&id=%281%29%20Background) Lumen, a technology and communications company, updated its depreciation method and extended the economic life of fiber assets, decreasing Q1 2024 depreciation expense by $16 million - Effective January 1, 2024, the company changed its depreciation method for ILEC and certain CLEC fixed assets to a straight-line method for individual assets, which had an **immaterial impact** for the quarter[43](index=43&type=chunk) - The estimated economic life of owned fiber network assets was extended from 25 to 30 years, resulting in a **$16 million decrease** in depreciation expense for Q1 2024[44](index=44&type=chunk) [Note 3: Revenue Recognition](index=17&type=section&id=%283%29%20Revenue%20Recognition) Total Q1 2024 revenue was $3.29 billion, a decrease from prior year, with $6.9 billion in future revenue expected from existing performance obligations Total Revenue by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Revenue (Millions) | Q1 2023 Revenue (Millions) | | :--- | :--- | :--- | | **Business Segment** | | | | Grow | $1,059 | $1,134 | | Nurture | $777 | $913 | | Harvest | $582 | $706 | | Other | $173 | $215 | | *Total Business* | *$2,591* | *$2,968* | | **Mass Markets Segment** | | | | Fiber Broadband | $170 | $152 | | Other Broadband | $315 | $369 | | Voice and Other | $214 | $249 | | *Total Mass Markets* | *$699* | *$770* | | **Total Revenue** | **$3,290** | **$3,738** | - As of March 31, 2024, the company expects to recognize **$6.9 billion** in future revenue from unsatisfied performance obligations associated with existing customer contracts[64](index=64&type=chunk) [Note 5: Long-Term Debt and Credit Facilities](index=22&type=section&id=%285%29%20Long-Term%20Debt%20and%20Credit%20Facilities) Lumen completed a debt restructuring under a TSA, extending maturities by $10.2 billion and raising $1.325 billion in new capital, but increasing the average interest rate to 7.73% and yielding a $275 million gain on debt extinguishment - On March 22, 2024, the company completed transactions under a **Transaction Support Agreement (TSA)** with creditors, which included establishing new credit facilities, exchanging a substantial portion of existing notes, and raising new capital[75](index=75&type=chunk)[76](index=76&type=chunk) - The TSA transactions reduced total debt maturities due on or before December 31, 2027, by approximately **$10.2 billion**, but increased the weighted average interest rate on consolidated long-term debt from **6.23% to 7.73%**[82](index=82&type=chunk) - The company recognized a net gain on early retirement of debt of **$275 million** in Q1 2024, related to the TSA transactions[85](index=85&type=chunk) [Note 10: Segment Information](index=35&type=section&id=%2810%29%20Segment%20Information) Lumen reports two segments, Business and Mass Markets, with Q1 2024 Business segment revenue at $2.59 billion and Mass Markets at $699 million, contributing to total segment adjusted EBITDA of $1.73 billion Segment Adjusted EBITDA (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Adj. EBITDA (Millions) | Q1 2023 Adj. EBITDA (Millions) | | :--- | :--- | :--- | | Business | $1,355 | $1,595 | | Mass Markets | $376 | $414 | | **Total Segment Adj. EBITDA** | **$1,731** | **$2,009** | [Note 11: Commitments, Contingencies and Other Items](index=37&type=section&id=%2811%29%20Commitments%2C%20Contingencies%20and%20Other%20Items) Lumen faces various legal proceedings, including shareholder lawsuits, tax disputes, and litigation related to the Marshall Fire, with $81 million accrued for contingencies - As of March 31, 2024, the company has accrued **$81 million** for litigation and non-income tax contingencies[141](index=141&type=chunk) - The company is defending against multiple putative **shareholder class action lawsuits** alleging misstatements related to its Quantum Fiber business and environmental issues from lead-sheathed cables[144](index=144&type=chunk)[145](index=145&type=chunk) - Lumen is involved in litigation related to the **Marshall Fire** in Colorado, with preliminary damage claims exceeding **$2 billion**, and is also subject to federal investigations regarding the use of **Huawei equipment** in its networks[154](index=154&type=chunk)[156](index=156&type=chunk) Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | | (Millions USD) | | | **Operating Revenue** | **$3,290** | **$3,738** | | Total operating expenses | 3,245 | 3,348 | | **Operating Income** | **45** | **390** | | Total other income, net | 57 | 290 | | **Net Income** | **$57** | **$511** | | **Diluted EPS** | **$0.06** | **$0.52** | Consolidated Balance Sheet Highlights (Unaudited) | | **March 31, 2024** | **December 31, 2023** | | :--- | :--- | :--- | | | (Millions USD) | | | Cash and cash equivalents | $1,580 | $2,234 | | Total Assets | $33,173 | $34,018 | | Long-Term Debt | $18,591 | $19,831 | | Total Stockholders' Equity | $504 | $417 | Consolidated Statements of Cash Flows (Unaudited) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2024** | **2023** | | | (Millions USD) | | | Net cash provided by operating activities | $1,102 | $595 | | Net cash used in investing activities | ($698) | ($616) | | Net cash used in financing activities | ($1,060) | ($86) | | Net decrease in cash | ($656) | ($107) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 12% YoY revenue decline to the EMEA divestiture and legacy service declines, while highlighting the March 2024 debt restructuring and projected 2024 capital expenditures of $2.7 billion to $2.9 billion [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Consolidated operating revenue decreased 12% to $3.29 billion, partly due to the EMEA sale, while SG&A expenses rose $102 million from debt restructuring fees, leading to a significant drop in net income to $57 million Revenue by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Revenue (Millions) | Q1 2023 Revenue (Millions) | % Change | | :--- | :--- | :--- | :--- | | Business Segment | $2,591 | $2,968 | (13)% | | Mass Markets Segment | $699 | $770 | (9)% | | **Total** | **$3,290** | **$3,738** | **(12)%** | - SG&A expenses increased by **$102 million** YoY, mainly due to a **$143 million** increase in legal and professional fees associated with the company's debt restructuring transactions[192](index=192&type=chunk) - The company recognized a net gain on early retirement of debt of **$275 million** in Q1 2024, compared to a **$609 million** gain in Q1 2023[196](index=196&type=chunk)[198](index=198&type=chunk) [Segment Results](index=52&type=section&id=Segment%20Results) Business segment revenue declined 13% to $2.59 billion, impacted by the EMEA divestiture and broad product category declines, while Mass Markets revenue fell 9% despite Fiber Broadband growth Business Segment Revenue by Product (Q1 2024 vs Q1 2023) | Product Category | Q1 2024 Revenue (Millions) | Q1 2023 Revenue (Millions) | % Change | | :--- | :--- | :--- | :--- | | Grow | $1,059 | $1,134 | (7)% | | Nurture | $777 | $913 | (15)% | | Harvest | $582 | $706 | (18)% | | Other | $173 | $215 | (20)% | | **Total** | **$2,591** | **$2,968** | **(13)%** | Mass Markets Segment Revenue by Product (Q1 2024 vs Q1 2023) | Product Category | Q1 2024 Revenue (Millions) | Q1 2023 Revenue (Millions) | % Change | | :--- | :--- | :--- | :--- | | Fiber Broadband | $170 | $152 | 12% | | Other Broadband | $315 | $369 | (15)% | | Voice and Other | $214 | $249 | (14)% | | **Total** | **$699** | **$770** | **(9)%** | [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, Lumen held $1.6 billion in cash and projects $2.7 billion to $2.9 billion in 2024 capital expenditures, benefiting from a $729 million tax refund and recent debt restructuring - As of March 31, 2024, the company had **$1.6 billion** in cash and cash equivalents and **$715 million** of available borrowing capacity under its revolving credit facilities[211](index=211&type=chunk) - Projected capital expenditures for the full year 2024 are between **$2.7 billion and $2.9 billion**[213](index=213&type=chunk) - In January 2024, the company received a federal income tax cash refund of **$729 million**, including interest[228](index=228&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Lumen faces market risk from interest rate changes on its $6.1 billion unhedged floating-rate debt, where a 100 basis point SOFR increase would reduce annual pre-tax earnings by $61 million - The company has approximately **$6.1 billion** of unhedged floating-rate debt. A hypothetical **100 basis point increase** in SOFR would decrease annual pre-tax earnings by about **$61 million**[254](index=254&type=chunk) [Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during Q1 2024 - Based on an evaluation as of March 31, 2024, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective**[260](index=260&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the first quarter of 2024[261](index=261&type=chunk) Part II. Other Information [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference detailed legal proceedings from Note 11, emphasizing that ultimate outcomes may materially differ from current expectations - Information regarding legal proceedings is **incorporated by reference** from Note 11—Commitments, Contingencies and Other Items[264](index=264&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) New risks include the potential failure to realize full benefits from the March 2024 debt restructuring due to higher costs and restrictive covenants, and risks associated with a pending reverse stock split proposal - The company may **not realize all anticipated benefits** from its March 22, 2024 debt transactions due to substantial expenses, **higher interest rates**, and **more restrictive covenants**, which could limit future financing and dedicate cash flow to debt payments[266](index=266&type=chunk)[267](index=267&type=chunk) - A pending proposal to implement a **reverse stock split** carries risks, including potentially **decreased liquidity** of the common stock and higher trading costs[268](index=268&type=chunk)[269](index=269&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Lumen did not repurchase common stock in Q1 2024 but withheld 1,444,352 shares from employees to cover tax obligations related to stock-based awards - The company **did not repurchase any shares** of its outstanding common stock during the three months ended March 31, 2024[270](index=270&type=chunk) Shares Withheld for Taxes (Q1 2024) | Period | Total Number of Shares Withheld | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | Jan-24 | 61,117 | $1.65 | | Feb-24 | 19,176 | $1.52 | | Mar-24 | 1,364,059 | $1.62 | | **Total** | **1,444,352** | | [Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including supplemental indentures, new credit agreements from the March 2024 debt restructuring, and CEO/CFO certifications - Filed exhibits include numerous **supplemental indentures** and **credit agreements** related to the March 22, 2024 debt transactions, **CEO/CFO certifications**, and financial statements in Inline XBRL format[274](index=274&type=chunk)[276](index=276&type=chunk)[279](index=279&type=chunk)

NEWS RELEASE Lumen Technologies reports first quarter 2024 results First Quarter 2024 Highlights DENVER, April 30, 2024 — Lumen Technologies, Inc. (NYSE: LUMN) reported results for the first quarter ended March 31, 2024. Kate Johnson, president and CEO of Lumen, commented "Lumen continued to make material progress in our turnaround with our strategy intently focused on empowering digital enterprises with next generation connectivity solutions powered by our best-in-class nationwide fiber network. "While we ...

Wall Street analysts forecast that Lumen (LUMN) will report quarterly loss of $0.04 per share in its upcoming release, pointing to a year-over-year decline of 140%. It is anticipated that revenues will amount to $3.39 billion, exhibiting a decline of 9.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 11.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during ...

Lumen Technologies, Inc (LUMN) is scheduled to report first-quarter 2024 results on Apr 30, after the closing bell.The Zacks Consensus Estimate for total revenues is pegged at $3.39 billion, suggesting a fall of 9.3% from a year ago. The consensus estimate is currently pegged at a loss of 4 cents per share. In the year-ago quarter, LUMN reported earnings of 10 cents.The company missed the Zacks Consensus Estimate in two of the last four quarters and beat in the remaining quarters. It has a trailing four-qua ...