Lumen(US:LUMN)2024-11-05 21:02Financial Performance - Reported Net Loss of $(148) million for Q3 2024, compared to $(78) million for Q3 2023, representing a 90% increase in net loss year-over-year [4] - Adjusted EBITDA for Q3 2024 was $899 million, down 14% from $1.049 billion in Q3 2023 [4] - Total Revenue for Q3 2024 was $3.221 billion, a decrease of 12% compared to $3.641 billion in Q3 2023 [6] - Operating Income for Q3 2024 was $126 million, a decrease of 43% from $223 million in Q3 2023 [25] - Basic Loss Per Share for Q3 2024 was $(0.15), an increase of 88% compared to $(0.08) in Q3 2023 [25] - Total Operating Expenses decreased by 9% to $3.095 billion in Q3 2024 from $3.418 billion in Q3 2023 [25] - Adjusted EBITDA and Adjusted EBITDA Margin metrics are used to evaluate profitability and operating performance, although specific figures were not provided in the documents [36][37] Cash Flow and Liquidity - Free Cash Flow for Q3 2024 was $1.182 billion, significantly up from $38 million in Q3 2023 [6] - The company generated Net Cash Provided by Operating Activities of $2.032 billion in Q3 2024, up from $881 million in Q3 2023 [6] - Free Cash Flow, excluding Special Items, was $1.198 billion in Q3 2024, significantly up from $43 million in Q3 2023 [12] - Free Cash Flow guidance for 2024 has been raised to a range of $1.2 billion to $1.4 billion, up from the previous range of $1.0 billion to $1.2 billion [14] - Lumen Technologies reported a net cash provided by operating activities of $2,032 million for Q3 2024, compared to $881 million in Q3 2023 [48] - The company achieved a Free Cash Flow of $1,182 million in Q3 2024, significantly up from $38 million in Q3 2023 [48] Revenue Breakdown - North America Business Revenue decreased by 7% year-over-year to $2.443 billion in Q3 2024 from $2.641 billion in Q3 2023 [6] - International and Other revenue dropped 65% year-over-year to $93 million in Q3 2024 from $264 million in Q3 2023 [10] - Total Revenue for Q3 2024 was $3.221 billion, a decrease of 12% compared to $3.641 billion in Q3 2023 [11] - Total revenue for Q3 2024 was $3,221 million, a decrease from $3,641 million in Q3 2023 [50] Debt and Equity - Long-term debt decreased from $19,831 million to $18,142 million, reflecting the company's efforts to manage its debt levels [27] - The total stockholders' equity decreased from $417 million to $342 million, indicating a decline in the company's net worth [27] - Total current liabilities rose from $3,534 million to $3,940 million, primarily due to an increase in current maturities of long-term debt from $157 million to $415 million [27] Subscriber Growth - Fiber broadband subscribers grew to 1,035 thousand in Q3 2024, up from 992 thousand in Q2 2024 and 896 thousand in Q3 2023 [30] - The company continues to see sales momentum in its Quantum Fiber business, achieving record net subscription adds [2] Special Items and Costs - Special items impacting Adjusted EBITDA totaled $56 million in Q3 2024, compared to $55 million in Q3 2023 [46] - The company incurred transaction and separation costs of $41 million in Q3 2024, up from $28 million in Q3 2023 [46] - Severance costs for Q3 2024 were $12 million, compared to $8 million in Q3 2023 [46] Outlook - The updated full-year 2024 financial outlook for Adjusted EBITDA is projected to be between $3.9 billion and $4.0 billion, unchanged from the previous outlook [14] - The company expects Adjusted EBITDA for the twelve months ending December 31, 2024, to be in the range of $3,900 million to $4,000 million [53] - Lumen anticipates Free Cash Flow for the twelve months ending December 31, 2024, to be between $1,200 million and $1,400 million [53] Tax and Cash Position - The company received an approximately $700 million tax refund during Q1 2024 [14] - As of September 30, 2024, Lumen had cash and cash equivalents of $2.640 billion [12] - Cash and cash equivalents increased from $2,234 million at the end of 2023 to $2,640 million by September 30, 2024 [27] Other Financial Metrics - Capital Expenditures for Q3 2024 were $850 million, a slight increase from $843 million in Q3 2023 [10] - The company reported a change in deferred revenue of $1,572 million for the nine months ended September 30, 2024, compared to $161 million in the same period of 2023 [28] - Net loss for the nine months ended September 30, 2024, was $140 million, a significant improvement compared to a net loss of $8,303 million in the same period of 2023 [28] - Total assets decreased slightly from $34,018 million on December 31, 2023, to $33,989 million on September 30, 2024 [27]