CenturyLink, Inc. (NYSE:CTL) Q2 2018 Earnings Conference Call - Final Transcript

Aug 08, 2018 • 05:00 pm ET


CenturyLink, Inc. (NYSE:CTL) Q2 2018 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. And welcome to CenturyLink's Second Quarter 2018 Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Valerie Finberg, VP, IR. Please go ahead Valerie.

Valerie Finberg

Thank you Fanse, good afternoon everyone and thank you for joining us for the CenturyLink's second quarter 2018 earnings call. With us on the call today are Jeff Storey, President and CEO, and Sunit Patel, EVP and CFO. Unless otherwise noted, prior periods are provided on the pro forma basis, assuming both the sale of the legacy CenturyLink data centers and co-location business and the acquisition of Level 3 occurred as of January 1, 2017.

Unless otherwise noted, revenue and sales comparisons to prior periods are provided on a year-over-year basis. Additionally, adjusted EBITDA, capital expenditures, free cash flow and net debt-to-adjusted EBITDA discussed on the call today excludes integration-related expense and other special items as noted in our earnings materials. All of our supplemental earnings materials, including the presentation, we will review on this call, can be found in the IR section of the CenturyLink website at ir.centurylink.com. You can see our forward-looking statements on Page 2 of the 2Q18 earnings presentation, which says the presentation and remarks contain forward-looking statements. (Forward Looking Cautionary Statements) With that, I will turn the call over to Jeff.

Jeff Storey

Thank you, Valerie. And thanks everyone for joining us on the call today. I am excited about the potential we see in the business to continue to grow free cash flow per share. We believe this is the most important value driver in our business, and we had a good quarter on that front. A few thoughts to highlight. Integration is going well and we're ahead of plan for capturing synergy. We believe our global network assets, robust product portfolio and our willingness to invest to meet our customers' need enables CenturyLink to evolve as our customers evolve.

In addition to the integration efforts, associated with the acquisition of Level 3, we are also focused on transforming to more efficient operating models beyond the capture of synergies. Integration is about the bringing the two companies together; transformation is about enhancing our business for effectiveness, cost efficiency and customer experience to move us to where we want to be as a company. We are working to create a more digital experience across our customer base from our consumer customers to our largest business customers.

I will talk more about these transformation efforts a little later, but we're excited about what it can mean for our employees, our customers, and our shareholders. As a result of the progress we've made in the first half of 2018, we announced that we are increasing our outlook for adjusted EBITDA and free cash flow for the full-year 2018.

On the call today, Sunit will provide an update on our detailed financial results and our updated full-year outlook. I will then provide an update on integration, transformation and the Company in general. After