BROOMFIELD, Colo., April 28, 2016 /PRNewswire/ -- Level 3
Communications, Inc. (NYSE: LVLT) today reported results for the
first quarter 2016.
"Level 3's first quarter results demonstrate the benefit of our
emphasis on profitable growth, as evident in our expanding margins
and strong Free Cash Flow during the quarter," said Jeff Storey, president and CEO of Level 3. "The
continued evolution of our products and service capabilities
matches the changing and complex needs of enterprises, positioning
the company to become the premier provider of global communications
services."
Total revenue was $2.051 billion
for the first quarter 2016, compared to $2.030 billion on a pro forma basis, for the
first quarter 2015, excluding the results from the company's
Venezuelan subsidiary's operations that was deconsolidated as of
September 30, 2015.
In the first quarter 2016, the company generated net income of
$124 million, basic earnings per
share of $0.35 and diluted earnings
per share of $0.34. Included in basic
and diluted earnings per share was Income Tax Expense of
$94 million, $85 million of which was non-cash, primarily due
to utilization of the company's U.S. federal net operating losses.
For the first quarter 2015, net income was $122 million and basic and diluted earnings per
share were $0.35.
Financial Results
Metric
($ in
millions)
|
First
Quarter
2016
|
First
Quarter
2015 Pro
Forma(1)(2)
|
Core Network Services
Revenue
|
$1,947
|
$1,904
|
Wholesale Voice
Services Revenue
|
$104
|
$126
|
Total
Revenue
|
$2,051
|
$2,030
|
Network Access
Costs
|
$694
|
$720
|
Network Access
Margin
|
66.2%
|
64.5%
|
Network Related
Expenses (NRE) (3)
|
$331
|
$349
|
Selling, General and
Administrative Expenses (SG&A)(3)
|
$316
|
$341
|
Non-cash Compensation
Expense
|
$47
|
$31
|
Adjusted
EBITDA(4)
|
$710
|
$620
|
Adjusted EBITDA
Margin(4)
|
34.6%
|
30.5%
|
Capital
Expenditures
|
$297
|
$251
|
Unlevered Cash
Flow(4)
|
$324
|
$188
|
Free Cash
Flow(4)
|
$213
|
$42
|
Net Income
|
$124
|
$122
|
Net Income per Common
Share-Basic
|
$0.35
|
$0.35
|
Weighted Average
Shares Outstanding (in thousands)- Basic
|
356,785
|
346,874
|
|
|
(1)
|
References to "pro
forma" figures represent the results adjusted to exclude the
company's Venezuelan subsidiary's operations except for Net Income,
Net Income per Common Share-Basic and Weighted Average Shares
Outstanding (in thousands)- Basic.
|
(2)
|
The reported first
quarter 2015 results have been adjusted to reflect changes made to
customer assignments between the wholesale and enterprise channels
as of the beginning of 2016.
|
(3)
|
Excludes non-cash
compensation expense.
|
(4)
|
See schedule of
non-GAAP metrics for definitions and reconciliation to GAAP
measures.
|
Revenue
Core Network
Services (CNS) Revenue
($ in
millions)
|
First
Quarter
2016
|
First
Quarter
2015 Pro
Forma(1)(2)
|
Percent
Change,
Constant
Currency
|
North
America
|
$1,601
|
$1,534
|
4%
|
Wholesale
|
$434
|
$438
|
(1%)
|
Enterprise
|
$1,167
|
$1,096
|
6%
|
|
|
|
|
EMEA
|
$191
|
$207
|
(5%)
|
Wholesale
|
$65
|
$71
|
(5%)
|
Enterprise
|
$107
|
$110
|
-%
|
UK
Government
|
$19
|
$26
|
(22%)
|
|
|
|
|
Latin
America
|
$155
|
$163
|
8%
|
Wholesale
|
$39
|
$44
|
-%
|
Enterprise
|
$116
|
$119
|
10%
|
|
|
|
|
Total CNS
Revenue
|
$1,947
|
$1,904
|
4%
|
Wholesale
|
$538
|
$553
|
(1%)
|
Enterprise
|
$1,409
|
$1,351
|
6%
|
|
|
(1)
|
References to "pro
forma" figures represent the results adjusted to exclude the
company's Venezuelan subsidiary's operations.
|
(2)
|
The reported first
quarter 2015 results have been adjusted to reflect changes made to
customer assignments between the wholesale and enterprise channels
as of the beginning of 2016.
|
CNS Revenue
CNS Revenue was $1.947 billion in
the first quarter 2016, increasing 3.6 percent year-over-year on a
pro forma and constant currency basis.
Adjusted EBITDA
For the first quarter 2016, Adjusted EBITDA was $710 million. For the first quarter 2015,
Adjusted EBITDA on a pro forma basis was $620 million, which excluded the results from the
operations of the company's Venezuelan subsidiary.
Adjusted EBITDA margins expanded to 34.6 percent in the first
quarter 2016 from 30.5 percent on a pro forma basis in the first
quarter 2015.
Capital Market Transactions and Liquidity
After the close of the quarter, on April
21, 2016, the company fully redeemed $775 million aggregate principal amount of Level
3 Financing, Inc.'s 7% Senior Notes due 2020. To fund the
redemption of these notes, Level 3 Financing used the net proceeds
from the issuance of its 5.25% Senior Notes due 2026, along with
cash on hand, to pay for principal, accrued interest, applicable
premiums and transaction fees and expenses.
The company will incur a loss on extinguishment and modification
of debt before taxes as a result of this transaction and related
redemption of $40 million, or
approximately $0.11 in basic earnings
per share in the second quarter 2016.
As of March 31, 2016, the company
had cash and cash equivalents of $1.004
billion.
2016 Business Outlook
"With our continued focus on profitable revenue growth and
strong Adjusted EBITDA results in the first quarter 2016, we are
increasing our outlook for full year 2016 Adjusted EBITDA growth,"
said Sunit Patel, executive vice
president and CFO of Level 3.
"We now expect full year 2016 Adjusted EBITDA growth of 10 to 12
percent, compared to our previous outlook of 9 to 12 percent. In
addition, we continue to expect to generate Free Cash Flow of
$1.0 to $1.1 billion."
The company has also updated full year 2016 outlook measures for
interest expense and non-cash compensation expense.
Metrics
|
Old
Outlook
|
New
Outlook
|
Adjusted
EBITDA(1)
|
YoY growth of 9% to
12%
|
YoY growth of 10% to
12%
|
Free Cash
Flow
|
$1.0 to $1.1
billion
|
No Change
|
GAAP Interest
Expense
|
$570
million
|
$555
million
|
Cash Interest
Expense
|
$520
million
|
$510
million
|
Capital
Expenditures
|
15% of Total
Revenue
|
No Change
|
Depreciation and
amortization
|
$1.230
billion
|
No Change
|
Cash Income
Tax
|
$40
million
|
No Change
|
Non-cash Compensation
Expense
|
$130
million
|
$170
million
|
Full Year Income Tax
Rate
|
~30%
|
No
Change
|
|
|
(1)
|
From a starting point
of $2.592 billion, which is adjusted to exclude Adjusted EBITDA
from the company's Venezuela subsidiary.
|
Conference Call and Website Information
Level 3 will hold a conference call to discuss the company's
First Quarter Results today at 10 a.m.
ET. The call will be broadcast live on Level 3's Investor
Relations website at http://investors.level3.com. Additional
information regarding First Quarter Results, including the
presentation management will review on the conference call, will be
available on Level 3's Investor Relations website. If you are
unable to join the call via the Web, the call can be accessed live
at +1 877-283-5145 (U.S. Domestic) or +1 312-281-1200
(International). Questions should be sent to
investor.relations@level3.com.
For additional information, please call +1 720-888-2518.
About Level 3 Communications
Level 3 Communications,
Inc. (NYSE: LVLT) is a Fortune 500 company that provides local,
national and global communications services to enterprise,
government and carrier customers. Level 3's comprehensive portfolio
of secure, managed solutions includes fiber and infrastructure
solutions; IP-based voice and data communications; wide-area
Ethernet services; video and content distribution; data center and
cloud-based solutions. Level 3 serves customers in more than 500
markets in over 60 countries across a global services platform
anchored by owned fiber networks on three continents and connected
by extensive undersea facilities. For more information, please
visit www.level3.com or get to know us on Twitter, Facebook and
LinkedIn.
© Level 3 Communications, LLC. All Rights Reserved. Level 3,
Level 3 Communications, Level (3) and the Level 3 Logo are either
registered service marks or service marks of Level 3
Communications, LLC and/or one of its Affiliates in the United States and elsewhere. Any other
service names, product names, company names or logos included
herein are the trademarks or service marks of their respective
owners. Level 3 services are provided by subsidiaries of Level 3
Communications, Inc.
Forward-Looking Statement
Some
statements made in this press release are forward-looking in nature
and are based on management's current expectations or beliefs.
These forward-looking statements are not a guarantee of performance
and are subject to a number of uncertainties and other factors,
many of which are outside Level 3's control, which could cause
actual events to differ materially from those expressed or implied
by the statements. Important factors that could prevent Level 3
from achieving its stated goals include, but are not limited to,
the company's ability to: successfully integrate the tw telecom
acquisition; manage risks associated with continued uncertainty in
the global economy; increase revenue from its services to realize
its targets for financial and operating performance; maintain and
increase traffic on its network; develop and maintain effective
business support systems; manage system and network failures or
disruptions; avert the breach of its network and computer system
security measures; develop new services that meet customer demands
and generate acceptable margins; manage the future expansion or
adaptation of its network to remain competitive; defend
intellectual property and proprietary rights; manage continued or
accelerated decreases in market pricing for communications
services; obtain capacity for its network from other providers and
interconnect its network with other networks on favorable terms;
attract and retain qualified management and other personnel;
successfully integrate future acquisitions; effectively manage
political, legal, regulatory, foreign currency and other risks it
is exposed to due to its substantial international operations;
mitigate its exposure to contingent liabilities; and meet all of
the terms and conditions of its debt obligations. Additional
information concerning these and other important factors can be
found within Level 3's filings with the Securities and Exchange
Commission. Statements in this press release should be evaluated in
light of these important factors. Level 3 is under no obligation
to, and expressly disclaims any such obligation to, update or alter
its forward-looking statements, whether as a result of new
information, future events, or otherwise.
Contact Information
Media:
|
Investors:
|
D. Nikki
Wheeler
|
Mark
Stoutenberg
|
+1
720-888-0560
|
+1
720-888-2518
|
Nikki.Wheeler@Level3.com
|
Mark.Stoutenberg@Level3.com
|
Level 3 Communications:
Non-GAAP Metrics
Pursuant to Regulation G, the company is hereby providing
definitions of non-GAAP financial metrics and reconciliations to
the most directly comparable GAAP measures.
The following describes and reconciles those financial measures
as reported under accounting principles generally accepted in
the United States (GAAP) with
those financial measures as adjusted by the items detailed below
and presented in the accompanying news release. These calculations
are not prepared in accordance with GAAP and should not be viewed
as alternatives to GAAP. In keeping with its historical financial
reporting practices, the company believes that the supplemental
presentation of these calculations provides meaningful non-GAAP
financial measures to help investors understand and compare
business trends among different reporting periods on a consistent
basis.
In addition, measures referred to in the accompanying news
release as being calculated "on a constant currency basis" or "in
constant currency terms" are non-GAAP metrics intended to present
the relevant information assuming a constant exchange rate between
the two periods being compared. Such metrics are calculated by
applying the currency exchange rates used in the preparation of the
prior period financial results to the subsequent period
results.
Core Network Services Revenue includes revenue from
colocation and datacenter services, transport and fiber, IP and
data services, and voice services (local and enterprise).
Network Access Costs includes leased capacity,
right-of-way costs, access charges, satellite transponder lease
costs and other third party costs directly attributable to
providing access to customer locations from the Level 3 network,
but excludes Network Related Expenses, and depreciation and
amortization. Network Access Costs do not include any employee
expenses or impairment expenses; these expenses are allocated to
Network Related Expenses or Selling, General and Administrative
Expenses.
Network Related Expenses includes certain expenses
associated with the delivery of services to customers and the
operation and maintenance of the Level 3 network, such as facility
rent, utilities, maintenance and other costs, each related to the
operation of its communications network, as well as salaries, wages
and related benefits (including non-cash stock-based compensation
expenses) associated with personnel who are responsible for the
delivery of services, operation and maintenance of its
communications network, and accretion expense on asset retirement
obligations, but excludes depreciation and amortization.
Network Access Margin ($) is defined as total Revenue
less Network Access Costs from the Consolidated Statements of
Operations, and excludes Network Related Expenses.
Network Access Margin (%) is defined as Network Access
Margin ($) divided by total Revenue. Management believes that
network access margin is a relevant metric to provide to investors,
as it is a metric that management uses to measure the margin
available to the company after it pays third party network services
costs; in essence, a measure of the efficiency of the company's
network.
Adjusted EBITDA is defined as net income (loss) from the
Consolidated Statements of Operations before income tax (expense)
benefit, total other income (expense), non-cash impairment charges,
depreciation and amortization and non-cash stock compensation
expense.
Adjusted EBITDA Margin is defined as Adjusted EBITDA
divided by total revenue.
Adjusted EBITDA
Metric
|
Q1 2016 (as
reported)
|
(in
millions)
|
|
|
Net Income
|
$
|
124
|
|
Income Tax
Expense
|
94
|
|
Total Other
Expense
|
144
|
|
Depreciation and
Amortization
|
301
|
|
Non-Cash Stock
Compensation
|
47
|
|
Adjusted
EBITDA
|
$
|
710
|
|
|
|
Total
Revenue
|
$
|
2,051
|
|
Adjusted EBITDA
Margin
|
34.6
|
%
|
Adjusted EBITDA
Metric
|
Q1 2015 (pro
forma)1
|
(in
millions)
|
|
|
Net Income
|
$
|
109
|
|
Income Tax
Expense
|
5
|
|
Total Other
Expense
|
189
|
|
Depreciation and
Amortization
|
286
|
|
Non-Cash Stock
Compensation
|
31
|
|
Adjusted
EBITDA
|
$
|
620
|
|
|
|
Total
Revenue
|
$
|
2,030
|
|
Adjusted EBITDA
Margin
|
30.5
|
%
|
|
1Represents the consolidated results pro
forma to exclude the Company's Venezuelan subsidiary's operations
that was deconsolidated as of September 30, 2015.
|
Adjusted EBITDA
Metric
|
Q1 2015 (as
reported)
|
(in
millions)
|
|
|
Net Income
|
$
|
122
|
|
Income Tax
Expense
|
5
|
|
Total Other
Expense
|
189
|
|
Depreciation and
Amortization
|
288
|
|
Non-Cash Stock
Compensation
|
31
|
|
Adjusted
EBITDA
|
$
|
635
|
|
|
|
Total
Revenue
|
$
|
2,053
|
|
Adjusted EBITDA
Margin
|
30.9
|
%
|
Management believes that Adjusted EBITDA and Adjusted EBITDA
Margin are relevant and useful metrics to provide to investors, as
they are an important part of the company's internal reporting and
are key measures used by Management to evaluate profitability and
operating performance of the company and to make resource
allocation decisions. Management believes such measures are
especially important in a capital-intensive industry such as
telecommunications. Management also uses Adjusted EBITDA and
Adjusted EBITDA Margin to compare the company's performance to that
of its competitors and to eliminate certain non-cash and
non-operating items in order to consistently measure from period to
period its ability to fund capital expenditures, fund growth,
service debt and determine bonuses. Adjusted EBITDA excludes
non-cash impairment charges and non-cash stock compensation expense
because of the non-cash nature of these items. Adjusted EBITDA also
excludes interest income, interest expense and income taxes because
these items are associated with the company's capitalization and
tax structures. Adjusted EBITDA also excludes depreciation and
amortization expense because these non-cash expenses primarily
reflect the impact of historical capital investments, as opposed to
the cash impacts of capital expenditures made in recent periods,
which may be evaluated through cash flow measures. Adjusted
EBITDA excludes the gain (or loss) on extinguishment and
modification of debt and other, net because these items are not
related to the primary operations of the company.
There are limitations to using Adjusted EBITDA as a financial
measure, including the difficulty associated with comparing
companies that use similar performance measures whose calculations
may differ from the company's calculations. Additionally, this
financial measure does not include certain significant items such
as interest income, interest expense, income taxes, depreciation
and amortization, non-cash impairment charges, non-cash stock
compensation expense, the gain (or loss) on extinguishment and
modification of debt and net other income (expense). Adjusted
EBITDA and Adjusted EBITDA Margin should not be considered a
substitute for other measures of financial performance reported in
accordance with GAAP.
Unlevered Cash Flow is defined as net cash provided by
(used in) operating activities less capital expenditures, plus cash
interest paid and less interest income all as disclosed in the
Consolidated Statements of Cash Flows or the Consolidated
Statements of Operations. Management believes that Unlevered Cash
Flow is a relevant metric to provide to investors, as it is an
indicator of the operational strength and performance of the
company and, measured over time, provides management and investors
with a sense of the underlying business' growth pattern and ability
to generate cash. Unlevered Cash Flow excludes cash used for
acquisitions and debt service and the impact of exchange rate
changes on cash and cash equivalents balances.
There are material limitations to using Unlevered Cash Flow to
measure the company's cash performance as it excludes certain
material items such as payments on and repurchases of long-term
debt, interest income, cash interest expense and cash used to fund
acquisitions. Comparisons of Level 3's Unlevered Cash Flow to that
of some of its competitors may be of limited usefulness since Level
3 does not currently pay a significant amount of income taxes due
to net operating losses, and therefore, generates higher cash flow
than a comparable business that does pay income taxes.
Additionally, this financial measure is subject to variability
quarter over quarter as a result of the timing of payments related
to accounts receivable and accounts payable and capital
expenditures. Unlevered Cash Flow should not be used as a
substitute for net change in cash and cash equivalents in the
Consolidated Statements of Cash Flows.
Free Cash Flow is defined as net cash provided by (used
in) operating activities less capital expenditures as disclosed in
the Consolidated Statements of Cash Flows. Management believes that
Free Cash Flow is a relevant metric to provide to investors, as it
is an indicator of the company's ability to generate cash to
service its debt. Free Cash Flow excludes cash used for
acquisitions, principal repayments and the impact of exchange rate
changes on cash and cash equivalents balances.
There are material limitations to using Free Cash Flow to
measure the company's performance as it excludes certain material
items such as principal payments on and repurchases of long-term
debt and cash used to fund acquisitions. Comparisons of Level 3's
Free Cash Flow to that of some of its competitors may be of limited
usefulness since Level 3 does not currently pay a significant
amount of income taxes due to net operating losses, and therefore,
generates higher cash flow than a comparable business that does pay
income taxes. Additionally, this financial measure is subject to
variability quarter over quarter as a result of the timing of
payments related to interest expense, accounts receivable and
accounts payable and capital expenditures. Free Cash Flow should
not be used as a substitute for net change in cash and cash
equivalents on the Consolidated Statements of Cash Flows.
Unlevered Cash
Flow and Free Cash Flow
|
|
|
|
Three Months Ended
March 31, 2016 (as reported)
|
Unlevered
|
|
|
($ in
millions)
|
Cash
Flow
|
|
Free Cash
Flow
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
$
|
510
|
|
|
$
|
510
|
|
Capital
Expenditures
|
(297)
|
|
|
(297)
|
|
Cash Interest
Paid
|
112
|
|
|
N/A
|
|
Interest
Income
|
(1)
|
|
|
N/A
|
|
Total
|
$
|
324
|
|
|
$
|
213
|
|
|
|
|
|
|
|
|
|
Unlevered Cash
Flow and Free Cash Flow
|
|
|
|
Three Months Ended
March 31, 2015 (pro forma)1
|
Unlevered
|
|
|
($ in
millions)
|
Cash
Flow
|
|
Free Cash
Flow
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
$
|
293
|
|
|
$
|
293
|
|
Capital
Expenditures
|
(251)
|
|
|
(251)
|
|
Cash Interest
Paid
|
147
|
|
|
N/A
|
|
Interest
Income
|
(1)
|
|
|
N/A
|
|
Total
|
$
|
188
|
|
|
$
|
42
|
|
|
1Represents the consolidated results pro
forma to exclude the Company's Venezuelan subsidiary's operations
that was deconsolidated as of September 30, 2015.
|
|
|
Unlevered Cash
Flow and Free Cash Flow
|
|
|
|
Three Months Ended
March 31, 2015 (as reported)
|
Unlevered
|
|
|
($ in
millions)
|
Cash
Flow
|
|
Free Cash
Flow
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
$
|
305
|
|
|
$
|
305
|
|
Capital
Expenditures
|
(254)
|
|
|
(254)
|
|
Cash Interest
Paid
|
147
|
|
|
N/A
|
|
Interest
Income
|
(1)
|
|
|
N/A
|
|
Total
|
$
|
197
|
|
|
$
|
51
|
|
|
LEVEL 3
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Income
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
(dollars in millions,
except per share data)
|
March 31,
2016
|
December 31,
2015
|
March 31,
2015
|
|
|
|
|
Revenue
|
$
2,051
|
$
2,053
|
$
2,053
|
|
|
|
|
Costs and
Expenses
|
|
|
|
Network access
costs
|
694
|
708
|
723
|
Network related
expenses
|
338
|
344
|
356
|
Depreciation and
amortization
|
301
|
294
|
288
|
Selling, general and
administrative expenses
|
356
|
369
|
370
|
Total costs
and expenses
|
1,689
|
1,715
|
1,737
|
|
|
|
|
Operating
Income
|
362
|
338
|
316
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
Interest
income
|
1
|
—
|
1
|
Interest
expense
|
(135)
|
(152)
|
(180)
|
Loss on modification
and extinguishment of debt
|
—
|
(55)
|
—
|
Other, net
|
(10)
|
3
|
(10)
|
Total other
expense
|
(144)
|
(204)
|
(189)
|
|
|
|
|
Income Before Income
Taxes
|
218
|
134
|
127
|
|
|
|
|
Income Tax (Expense)
Benefit
|
(94)
|
3,189
|
(5)
|
|
|
|
|
Net Income
|
$
124
|
$
3,323
|
$
122
|
|
|
|
|
Basic Earnings per
Common Share:
|
|
|
|
Net Income per
Share
|
$
0.35
|
$
9.33
|
$
0.35
|
Weighted-Average
Shares Outstanding (in thousands)
|
356,785
|
356,274
|
346,874
|
|
|
|
|
Diluted Earnings per
Common Share:
|
|
|
|
Net Income per
Share
|
$
0.34
|
$
9.24
|
$
0.35
|
Weighted-Average
Shares Outstanding (in thousands)
|
360,339
|
359,712
|
350,832
|
|
LEVEL 3
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(unaudited)
|
|
|
|
|
|
March 31,
|
December
31,
|
March 31,
|
(dollars in
millions)
|
2016
|
2015
|
2015
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$ 1,004
|
$
854
|
$ 1,114
|
Restricted cash and
securities
|
837
|
8
|
7
|
Receivables, less
allowances for doubtful accounts
|
807
|
757
|
743
|
Other
|
141
|
111
|
151
|
Total Current
Assets
|
2,789
|
1,730
|
2,015
|
|
|
|
|
Property, Plant and
Equipment, net
|
9,974
|
9,878
|
9,744
|
Restricted Cash and
Securities
|
41
|
42
|
19
|
Goodwill
|
7,746
|
7,749
|
7,740
|
Other Intangibles,
net
|
1,074
|
1,127
|
1,298
|
Deferred Tax
Assets
|
3,365
|
3,441
|
284
|
Other
Assets
|
50
|
50
|
55
|
Total
Assets
|
$ 25,039
|
$ 24,017
|
$ 21,155
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$ 680
|
$
629
|
$ 629
|
Current portion of
long-term debt
|
781
|
15
|
503
|
Accrued payroll and
employee benefits
|
146
|
218
|
177
|
Accrued
interest
|
131
|
108
|
187
|
Current portion of
deferred revenue
|
283
|
267
|
300
|
Other
|
166
|
179
|
148
|
Total Current
Liabilities
|
2,187
|
1,416
|
1,944
|
|
|
|
|
Long-Term Debt, less
current portion
|
10,870
|
10,866
|
10,849
|
Deferred Revenue,
less current portion
|
1,012
|
977
|
895
|
Other
Liabilities
|
628
|
632
|
750
|
Total
Liabilities
|
14,697
|
13,891
|
14,438
|
|
|
|
|
Stockholders'
Equity
|
10,342
|
10,126
|
6,717
|
Total Liabilities and
Stockholders' Equity
|
$ 25,039
|
$ 24,017
|
$ 21,155
|
|
LEVEL 3
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
December
31,
|
March 31,
|
(dollars in
millions)
|
2016
|
2015
|
2015
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$ 124
|
$ 3,323
|
$ 122
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
and amortization
|
301
|
294
|
288
|
Non-cash
compensation expense attributable to stock awards
|
47
|
49
|
31
|
Loss on
modification and extinguishment of debt
|
—
|
55
|
—
|
Accretion of
debt discount and amortization of debt issuance costs
|
5
|
6
|
7
|
Accrued
interest on long-term debt, net
|
23
|
(29)
|
22
|
Deferred
income taxes
|
85
|
(3,207)
|
(10)
|
Gain on sale
of property, plant and equipment and other assets
|
—
|
—
|
(1)
|
Other,
net
|
(9)
|
3
|
21
|
Changes in
working capital items:
|
|
|
|
Receivables
|
(44)
|
43
|
(23)
|
Other current
assets
|
(35)
|
10
|
(19)
|
Payables
|
48
|
5
|
(24)
|
Deferred
revenue
|
46
|
29
|
8
|
Other current
liabilities
|
(81)
|
(25)
|
(117)
|
Net Cash Provided by
Operating Activities
|
510
|
556
|
305
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(297)
|
(330)
|
(254)
|
Change in
restricted cash and securities, net
|
(828)
|
2
|
1
|
Proceeds from
sale of property, plant and equipment and other assets
|
—
|
1
|
1
|
Net Cash Used in
Investing Activities
|
(1,125)
|
(327)
|
(252)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Long-term debt
borrowings, net of issuance costs
|
765
|
885
|
492
|
Payments on
and repurchases of long-term debt and capital leases
|
(1)
|
(949)
|
(2)
|
Net Cash Provided by
(Used in) Financing Activities
|
764
|
(64)
|
490
|
|
|
|
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
1
|
(2)
|
(9)
|
|
|
|
|
Net Change in Cash
and Cash Equivalents
|
150
|
163
|
534
|
|
|
|
|
Cash and Cash
Equivalents at Beginning of Period
|
854
|
691
|
580
|
|
|
|
|
Cash and Cash
Equivalents at End of Period
|
$ 1,004
|
$
854
|
$ 1,114
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
Cash interest
paid
|
$ 112
|
$
173
|
$ 147
|
Logo - http://photos.prnewswire.com/prnh/20140908/144115
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/level-3-reports-first-quarter-2016-results-300259028.html
SOURCE Level 3 Communications, Inc.