Lumen Technologies Files Q3 2024 10-Q

Ticker: LUMN · Form: 10-Q · Filed: Nov 5, 2024 · CIK: 18926

Sentiment: neutral

Topics: 10-Q, telecommunications, financials

TL;DR

Lumen Tech's Q3 2024 10-Q is in. Check financials.

AI Summary

Lumen Technologies, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the year, detailing financial performance and business operations. Lumen Technologies, Inc. is based in Monroe, Louisiana, and operates in the telephone communications sector.

Why It Matters

This filing provides investors and analysts with the latest financial data and operational updates for Lumen Technologies, Inc., crucial for evaluating the company's performance and future prospects.

Risk Assessment

Risk Level: medium — As a publicly traded company in the telecommunications sector, Lumen Technologies faces inherent market, regulatory, and operational risks that are detailed in its SEC filings.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240930, indicating the filing covers the period ending September 30, 2024.

What is the company's primary industry classification?

The Standard Industrial Classification is TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813].

When was Lumen Technologies, Inc. previously known by another name?

The company was formerly known as CENTURYLINK, INC, with a name change date of 20101108.

Where is Lumen Technologies, Inc. headquartered?

The company's business and mailing address is in Monroe, Louisiana.

What is the SEC file number for Lumen Technologies, Inc.?

The SEC File Number is 001-07784.

Filing Stats: 4,558 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-11-05 16:03:19

Key Financial Figures

Filing Documents

Financial Statements

Financial Statements Consolidated Statements of Operations (Unaudited) 6 Consolidated Statements of Comprehensive Loss (Unaudited) 7 Consolidated Balance Sheets (Unaudited) 8 Consolidated Statements of Cash Flows (Unaudited) 9 Consolidated Statements of Stockholders' Equity (Unaudited) 10

Notes to Consolidated Financial Statements (Unaudited)*

Notes to Consolidated Financial Statements (Unaudited)* 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 69 Item 4.

Controls and Procedures

Controls and Procedures 69 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 70 Item 1A.

Risk Factors

Risk Factors 70 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 6. Exhibits 72 Signature 74 * All references to "Notes" in this quarterly report refer to these Notes to Consolidated Financial Statements. 2 Table of Contents Special Note Regarding Forward-Looking Statements This report and other documents filed by us under the federal securities law include, and future oral or written statements or press releases by us and our management may include, forward-looking statements about our business, financial condition, operating results or prospects. These "forward-looking" statements are defined by, and are subject to the "safe harbor" protections under the federal securities laws. These statements include, among others: forecasts of our anticipated future results of operations, cash flows or financial position; other similar statements of our expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts, many of which are highlighted by words such as "may," "will," "would," "could," "should," "plans," "believes," "expects," "anticipates," "e

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS LUMEN TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Dollars in millions, except per share amounts, and shares in thousands) OPERATING REVENUE $ 3,221 3,641 9,779 11,040 OPERATING EXPENSES Cost of services and products (exclusive of depreciation and amortization) 1,692 1,850 4,997 5,407 Selling, general and administrative 696 791 2,261 2,302 Net loss on sale of business — 22 17 112 Depreciation and amortization 707 755 2,198 2,234 Goodwill impairment — — — 8,793 Total operating expenses 3,095 3,418 9,473 18,848 OPERATING INCOME (LOSS) 126 223 306 ( 7,808 ) OTHER (EXPENSE) INCOME Interest expense ( 351 ) ( 295 ) ( 1,015 ) ( 868 ) Net (loss) gain on early retirement of debt (Note 5) ( 1 ) — 277 618 Other income (expense), net 54 ( 13 ) 321 ( 37 ) Total other expense, net ( 298 ) ( 308 ) ( 417 ) ( 287 ) LOSS BEFORE INCOME TAXES ( 172 ) ( 85 ) ( 111 ) ( 8,095 ) Income tax (benefit) expense ( 24 ) ( 7 ) 29 208 NET LOSS ( 148 ) ( 78 ) ( 140 ) ( 8,303 ) BASIC AND DILUTED LOSS PER COMMON SHARE BASIC $ ( 0.15 ) ( 0.08 ) ( 0.14 ) ( 8.45 ) DILUTED $ ( 0.15 ) ( 0.08 ) ( 0.14 ) ( 8.45 ) WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING BASIC 988,794 983,550 986,963 982,853 DILUTED 988,794 983,550 986,963 982,853 See accompanying notes to consolidated financial statements. 6 Table of Contents LUMEN TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Dollars in millions) NET LOSS $ ( 148 ) ( 78 ) ( 140 ) ( 8,303 ) OTHER COMPREHENSIVE INCOME (LOSS): Items related to employee benefit plans: Change in net actuarial loss, net of $( 6 ), $( 6 ), $( 17 ) and $( 16 ) tax 18 16 52 47 Change in net prior service cost, net of $ 1 , $ 1 , $ 3 and $ 3 tax ( 3 ) ( 3 ) ( 8 ) ( 8 ) Foreign currency transl

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) References in the Notes to "Lumen Technologies" or "Lumen," "we," "us," the "Company," and "our" refer to Lumen Technologies, Inc. and its consolidated subsidiaries, unless the context otherwise requires. Note 1— Background General We are a facilities-based technology and communications company that provides a broad array of integrated products and services to our domestic and global business customers and our domestic mass markets customers. We operate one of the world's most interconnected networks. Our platform empowers our customers to swiftly adjust digital programs to meet immediate demands, create efficiencies, accelerate market access and reduce costs, which allows our customers to rapidly evolve their IT programs to address dynamic changes. Our specific products and services are detailed in Note 3—Revenue Recognition. During 2022 and 2023, we divested components of our business, referenced herein as (i) the Europe, Middle East and Africa ("EMEA") business, divested November 1, 2023, (ii) the incumbent local exchange ("ILEC") business conducted in 20 Midwestern and Southeastern states, divested October 3, 2022 and (iii) the Latin American business, divested August 1, 2022. Refer to Note 2—Divestitures of the Latin American, ILEC and EMEA Businesses in our Annual Report on Form 10-K for the year ended December 31, 2023 for more information on these divestitures. As we determined that none of these divestitures represented a strategic shift for Lumen, they did not meet the criteria to be treated as discontinued operations and we continued to report our operating results for all three of the divested businesses in our consolidated operating results through their respective disposal dates. Basis of Presentation Our consolidated balance sheet as of December 31, 2023, which was derived from our audited consolidated financial statements, and our unaudited interim consolidated financial statements

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