Lumen Technologies, Inc. (NYSE:LUMN) Bank of America Securities 2024 Leveraged Finance Conference Call December 3, 2024 10:10 AM ET Company Participants Chris Stansbury - Executive Vice President & Chief Financial Officer Conference Call Participants Ana Goshko - Bank of America Ana Goshko Joining us at the Bank of America Leverage Finance Conference. I'm Ana Goshko from the fixed income research side, I cover Telecom and Technology. And we're thrilled to have Lumen Technologies with us. Chris Stansbury, th ...

Lumen Technologies, Inc. (NYSE:LUMN) Bank of America Securities 2024 Leveraged Finance Conference Call December 3, 2024 10:10 AM ET Company Participants Chris Stansbury - Executive Vice President & Chief Financial Officer Conference Call Participants Ana Goshko - Bank of America Ana Goshko Joining us at the Bank of America Leverage Finance Conference. I'm Ana Goshko from the fixed income research side, I cover Telecom and Technology. And we're thrilled to have Lumen Technologies with us. Chris Stansbury, th ...

Lumen is making moves to reduce its debt. So why are investors bailing on the stock?Lumen Technologies (LUMN -9.78%) stock is seeing big sell-offs in Tuesday's trading. The company's share price was down 9.3% as of 3 p.m. ET. and had been down as much as 11.7% earlier in the daily session. Meanwhile, the S&P 500 index was down 0.5%.Lumen stock is losing ground in conjunction with news that the company and its Level 3 Financings subsidiary are looking to buy back some of the telecom's outstanding bonds. The ...

DENVER, Nov. 12, 2024 /PRNewswire/ -- Lumen Technologies, Inc. (NYSE: LUMN) (the "Company" or "Lumen") and its indirect, wholly-owned subsidiary Level 3 Financing, Inc. ("Level 3") have commenced cash tender offers (each, an "Offer" and collectively, the "Offers") to purchase any and all of their respective outstanding notes identified in the table below (collectively, the "Notes").The Offers are being made by Lumen and Level 3 (each, an "Offeror" and, collectively, the "Offerors") on the terms and subject ...

Dublin, Nov. 07, 2024 (GLOBE NEWSWIRE) -- The "North America Implantable Ports Market Outlook to 2033 - Single Lumen Implantable Ports and Double Lumen Implantable Ports" report has been added to ResearchAndMarkets.com's offering.The comprehensive databook report covers key market data on the North America Implantable Ports market. The databook report provides value (USD), volume (units) and average prices (USD) within the market segments for Single Lumen Implantable Ports and Double Lumen Implantable Port ...

Lumen Technologies, Inc. (LUMN) reported an adjusted loss (excluding special items) of 13 cents per share for the third quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of 20 cents. The company reported a loss per share of 9 cents in the prior-year quarter.Quarterly total revenues were $3.221 billion, down 11.5% year over year. The decline was due to the negative impact of divestitures, commercial agreements and the sale of the CDN business. However, the metric beat the Zacks ...

Core Insights - Lumen reported revenue of $3.22 billion for Q3 2024, a decrease of 11.5% year-over-year, with an EPS of -$0.13 compared to -$0.09 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.58%, while the EPS surprised positively by 35% against the consensus estimate of -$0.20 [1] Financial Performance Metrics - Public Sector revenue was $427 million, below the estimated $444.48 million, reflecting a year-over-year decline of 3.8% [3] - Fiber Broadband-Mass Markets Segment generated $190 million, slightly above the estimated $189.17 million, marking a year-over-year increase of 17.3% [3] - Other Broadband-Mass Markets Segment revenue was $282 million, below the estimated $286.47 million, showing a decline of 17.1% year-over-year [3] - Voice and Other-Mass Markets Segment reported $213 million, exceeding the estimate of $206.94 million, with a year-over-year decrease of 13.1% [3] - Mid-Market Enterprise revenue totaled $471 million, slightly below the estimated $473.79 million, down 5.4% year-over-year [3] - Total Business Segment Revenue was $2.54 billion, slightly above the estimate of $2.52 billion, down 12.4% year-over-year [3] - Total Mass Markets Revenue was $685 million, exceeding the estimate of $682.58 million, down 8.3% year-over-year [3] - Wholesale Business Segment Revenue was $706 million, below the estimated $711.27 million, down 8.3% year-over-year [3] - Large Enterprise revenue was $839 million, slightly above the estimate of $832.32 million, reflecting a significant year-over-year decline of 29% [3] - International and Other revenue was $93 million, significantly above the estimated $58.05 million [3] Stock Performance - Lumen's shares have increased by 20.1% over the past month, contrasting with a 0.5% decline in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Company Performance - Lumen reported a quarterly loss of $0.13 per share, better than the Zacks Consensus Estimate of a loss of $0.20, but worse than a loss of $0.09 per share a year ago, representing an earnings surprise of 35% [1] - The company posted revenues of $3.22 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.58%, but down from $3.64 billion in the same quarter last year [2] - Over the last four quarters, Lumen has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Lumen shares have increased approximately 308.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 19.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.22 on revenues of $3.16 billion, and for the current fiscal year, it is -$0.59 on revenues of $12.92 billion [7] Industry Outlook - The Technology Services industry, to which Lumen belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Lumen's stock may be influenced by the overall industry outlook, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

| --- | --- | |-------|-------| | | | | | | LUMEN® 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," "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 a ...

Financial Performance - Operating revenue for Q3 2024 was $3.221 billion, a decrease of 12% compared to $3.641 billion in Q3 2023[210] - The net loss for Q3 2024 was $148 million, compared to a net loss of $78 million in Q3 2023[210] - The Business Segment revenue decreased by 13% to $2.536 billion in Q3 2024 from $2.905 billion in Q3 2023[214] - The Mass Markets Segment revenue decreased by 7% to $685 million in Q3 2024 from $736 million in Q3 2023[214] - Revenue from the International and Other sales channel decreased by 65% to $93 million in Q3 2024 from $264 million in Q3 2023[214] - Total operating revenue for the three months ended September 30, 2024, was $3.221 billion, a decrease of 11.5% compared to $3.641 billion for the same period in 2023[240] - Business segment revenue decreased by $369 million (13%) for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to the sale of the EMEA business[244] - Adjusted EBITDA for the three months ended September 30, 2024, was $843 million, down 15% from $994 million in the same period in 2023[242] - Mass Markets segment revenue decreased by $51 million (7%) for the three months ended September 30, 2024, compared to the same period in 2023[249] Expenses and Cost Management - Total operating expenses decreased by 9% to $3,095 million for the three months ended September 30, 2024, compared to $3,418 million in 2023[218] - Cost of services and products decreased by $158 million (9%) for the three months ended September 30, 2024, primarily due to the sale of the EMEA business[220] - Selling, general and administrative expenses decreased by $95 million (12%) for the three months ended September 30, 2024, attributed to workforce reductions and the sale of the EMEA business[222] - Depreciation and amortization expenses decreased by 6% to $707 million for the three months ended September 30, 2024, compared to $755 million in 2023[224] - Total operating expenses for the nine months ended September 30, 2024, decreased by 50% to $9,473 million from $18,848 million in 2023[219] Goodwill and Impairment - The company recognized nearly $14.0 billion in goodwill impairment charges in 2022 and 2023 due to various pressures on financial performance[195] - Goodwill impairment charge of $8.8 billion was recorded in the second quarter of 2023 due to a decline in share price[229] Cash Flow and Capital Expenditures - Cash and cash equivalents as of September 30, 2024, were $2.6 billion, with $738 million of borrowing capacity available under revolving credit facilities[257] - Capital expenditures for the full year 2024 are projected to be between $3.1 billion and $3.3 billion[259] - Net cash provided by operating activities increased by $2.3 billion to $3.645 billion for the nine months ended September 30, 2024, compared to $1.376 billion in the same period of 2023[295] - Net cash used in investing activities decreased by $233 million, totaling $1.999 billion for the nine months ended September 30, 2024, compared to $2.232 billion in 2023[297] - Net cash used in financing activities increased by $1.1 billion, reaching $1.241 billion for the nine months ended September 30, 2024, compared to $101 million in 2023[298] Debt and Financing - As of September 30, 2024, Lumen had $13.7 billion in outstanding consolidated secured indebtedness and $5.2 billion in unsecured indebtedness[271] - The company issued approximately $438 million in new 10.000% Secured Notes due 2032, reducing consolidated indebtedness by approximately $60 million[269] - Lumen received $729 million in federal income tax cash refund in January 2024, which will influence future tax payments[279] - The company expects to pay $193 million in post-retirement benefits for the full year 2024[284] Market and Competitive Landscape - The company anticipates increased competition for broadband customers in newly-served areas due to $65 billion in federal funding aimed at improving broadband access and affordability[290] - The FCC adopted "net neutrality" rules on April 25, 2024, which may impact operational, legal, and compliance costs if upheld against legal challenges[291] Operational Strategies - The company plans to continue investing in new technologies and automated processes to improve customer experience and reduce operating expenses[202] - The company aims to optimize pricing and rationalize products across its portfolio to mitigate revenue declines[212] - The company experienced a decline in revenues from voice and other legacy products, necessitating a focus on increasing network capacity and promoting integrated services[212] Other Considerations - The company has a stock repurchase program authorized for up to $1.3 billion, which expires on November 2, 2024[281] - Lumen's expected annual long-term rate of return on pension plan assets for 2024 is 6.5%[286] - The company continues to evaluate strategies to mitigate risks from fluctuations in currency exchange rates, which could impact operating results[308] - There have been no changes in internal control over financial reporting that materially affected the company's financial reporting during the third quarter of 2024[313]