Level 3 Reports Fourth Quarter and Full Year 2013 Results
Full Year 2013 Highlights
-For the full year 2013, grew CNS revenue by 2.9 percent and Enterprise CNS revenue by 6.8 percent year-over-year, on a constant currency basis
-Grew Adjusted EBITDA 11 percent for the full year 2013 compared to the full year 2012
-Free Cash Flow for full year 2013 was positive $29 million, excluding interest rate swap payments of $46 million and accelerated cash interest expense payments of $30 million
2014 Business Outlook
"In 2014, we look forward to building on the strong foundation for growth in revenue, Adjusted EBITDA and free cash flow that we laid in 2013," said Sunit Patel, executive vice president and CFO of Level 3. "Overall for the full year 2014, we expect CNS revenue growth to be higher than the 2.9 percent growth we saw for the full year 2013, on a constant currency basis.
"From the starting point of $1.565 billion, pro forma for the change in cash bonus compensation, we expect Adjusted EBITDA to grow 11 to 14 percent for the full year 2014 compared to the full year 2013. We expect to generate Free Cash Flow of $225-$275 million for the full year 2014."
For the full year 2014, the company also expects:
- GAAP interest expense of approximately $600 million
- Net cash interest expense of approximately $560 million
- Capital expenditures of approximately 12 to 13 percent of total revenue
- Depreciation and Amortization of approximately $750 million
- GAAP income tax expense of approximately $70 million"
For the first quarter 2014, we expect CNS revenue to be roughly flat on a sequential basis, due to the typical reversal in seasonally strong fourth quarter revenue offset by continued underlying growth," continued Patel. "Our fourth quarter Adjusted EBITDA was $438 adjusting for the $10 million Latin America tax benefit and the $18 million of bonus-related Non-Cash Compensation. With that in mind, we expect Adjusted EBITDA to be roughly flat for the first quarter 2014 compared to the $438 million in the fourth quarter 2013."
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