HIGHLIGHTS
- Revenue of $380 million and operating
income totaling $10 million
- Adjusted EBITDA1 of $98 million - in
line with company expectations
- Cincinnati Fioptics revenue totaled $87
million, adding 6,100 new fiber to the premise (“FTTP”) internet
subscribers during the quarter
- IT Services and Hardware revenue of
$136 million, up $9 million from a year ago
- Hawaiian Telcom contributed revenue of
$87 million and Adjusted EBITDA of $24 million
- Cash provided by operating activities
totaled $57 million with free cash flow2 of $6 million
Cincinnati Bell Inc. (NYSE:CBB), today announced financial
results for the first quarter of 2019.
Leigh Fox, President and Chief Executive Officer of Cincinnati
Bell, commented, "Our first quarter results provided a great start
to the year. The investments in dense metro fiber and the expansion
of our IT services footprint continue to differentiate Cincinnati
Bell in the marketplace.”
Mr. Fox added, “We are pleased to reaffirm our financial
guidance for 2019 as we continue to execute on our strategic
objectives, positioning Cincinnati Bell and its stakeholders for
long-term success.”
Consolidated Results
- Consolidated revenue totaled $380
million and operating income was $10 million for the first quarter
of 2019
- Adjusted EBITDA of $98 million in the
first quarter of 2019, up $19 million year-over-year including
contributions from the merger with Hawaiian Telcom on July 2,
2018
- Net loss for the first quarter of 2019
totaled $27 million, resulting in diluted loss per share of $0.59,
driven by accelerated depreciation of certain cloud-related assets
associated with insourcing initiatives from one of our largest
customers, as well as increased restructuring and severance related
charges and interest expense compared to a year ago
Entertainment and Communications Segment
- Entertainment and Communications
revenue totaled $250 million for the first quarter of 2019
- Cincinnati revenue totaled $171
million, down 2% from the prior year
- Fioptics revenue totaled $87 million,
up 5% year-over-year
- Fioptics internet subscribers totaled
243,300, up 10,500 compared to a year ago
- Fioptics video subscribers totaled
139,200, down 7,100 year-over-year
- Fioptics is available to approximately
76% of Greater Cincinnati, which includes a combination of fiber to
the premise ("FTTP") and fiber to the node ("FTTN") addresses
- During the first quarter of 2019, 5,300
additional homes and businesses were passed with FTTP, which is
available to 477,600 addresses, approximately 60% of Cincinnati's
total addressable market
- Hawaii revenue totaled $80 million in
the first quarter of 2019, consistent with the prior quarter
- Consumer / SMB Fiber revenue totaled
$22 million, up 4% sequentially
- Consumer / SMB Fiber internet
subscribers totaled 66,600, adding 700 new customers in the
quarter
- Video subscribers were 47,800, down
1,000 from the prior quarter
- Consumer / SMB Fiber is available to
approximately 50% of Hawaii, which includes a combination of FTTP
and FTTN addresses
- During the first quarter of 2019, 1,100
additional homes and businesses were passed with FTTP, which is
available to 168,100 addresses, approximately 35% of Hawaii's total
addressable market
- Adjusted EBITDA was $91 million for the
first quarter of 2019, consistent with the prior quarter
IT Services and Hardware Segment
- IT Services and Hardware revenue
totaled $136 million for the first quarter of 2019, up $9 million
year-over-year including contributions from Hawaiian Telcom
- Consulting revenue totaled $39 million
for the first quarter, up $8 million year-over-year
- Cloud revenue of $24 million increased
$2 million compared to the prior year despite insourcing
initiatives from one of our largest customers
- Certain cloud revenue from this
customer totaled $4 million in the first quarter of 2019 generating
Adjusted EBITDA of $3 million; compared to the first quarter of
2018, in which certain cloud revenue from the customer totaled $7
million resulting in Adjusted EBITDA of $5 million
- Communications revenue was $47 million,
up $7 million year-over-year
- Infrastructure Solutions revenue
totaled $26 million, down $8 million from a year ago
- Adjusted EBITDA of $10 million for the
first quarter of 2019, down $2 million year-over-year
Cash Flow and Financial Position
- Operating cash flows totaled $57
million for the first quarter of 2019 with free cash flow of $6
million
- Liquidity of $190 million as of March
31, 2019, with no significant maturities until 2024
- Capital expenditures were $57 million
for the first quarter of 2019
- Gross Net Operating Loss carryforward
of approximately $710 million as of March 31, 2019
2019 Outlook
- Cincinnati Bell is reaffirming the
following guidance for 2019 as previously provided on February 14,
2019:
2019
Category
Guidance Range
Revenue $1,515M - $1,575M Adjusted EBITDA $400M -
$410M
Conference Call/Webcast
Cincinnati Bell will host a conference call on Wednesday, May 8,
2019 at 9:00 a.m. (ET) to discuss its financial results for the
first quarter of 2019. A live webcast of the call will be available
via the Investor Relations section of www.cincinnatibell.com.
Callers can dial toll-free (888) 204-4368 or toll (929) 477-0402. A
taped replay of the conference call will be available starting at
12:00 p.m. (ET) on Wednesday, May 8, 2019 until 12:00 p.m. (ET) on
Wednesday, May 22, 2019. To access the telephone replay, please
dial toll-free (888) 203-1112 or toll (719) 457-0820, and then
enter the conference ID number 8208777. An archived webcast will be
available for replay following the conclusion of the live event in
the Investor Relations section of www.cincinnatibell.com.
INVESTOR RELATIONS CONTACT:Kei Lawson, 513-565-0510E-mail:
Takeitha.Lawson@cinbell.com
or
MEDIA CONTACT:Josh Pichler, 513-565-0310E-mail:
Josh.Pichler@cinbell.com
Safe Harbor Note
This release may contain “forward-looking” statements, as
defined in federal securities laws including the Private Securities
Litigation Reform Act of 1995, which are based on our current
expectations, estimates, forecasts and projections. Statements that
are not historical facts, including statements about the beliefs,
expectations and future plans and strategies of the Company, are
forward-looking statements. Actual results may differ materially
from those expressed in any forward-looking statements. The
following important factors, among other things, could cause or
contribute to actual results being materially and adversely
different from those described or implied by such forward-looking
statements including, but not limited to: those discussed in this
release; we operate in highly competitive industries, and customers
may not continue to purchase products or services, which would
result in reduced revenue and loss of market share; we may be
unable to grow our revenues and cash flows despite the initiatives
we have implemented; failure to anticipate the need for and
introduce new products and services or to compete with new
technologies may compromise our success in the telecommunications
industry; our access lines, which generate a significant portion of
our cash flows and profits, are decreasing in number and if we
continue to experience access line losses similar to the past
several years, our revenues, earnings and cash flows from
operations may be adversely impacted; our failure to meet
performance standards under our agreements could result in
customers terminating their relationships with us or customers
being entitled to receive financial compensation, which would lead
to reduced revenues and/or increased costs; we generate a
substantial portion of our revenue by serving a limited geographic
area; a large customer accounts for a significant portion of our
revenues and accounts receivable and the loss or significant
reduction in business from this customer would cause operating
revenues to decline and could negatively impact profitability and
cash flows; maintaining our telecommunications networks requires
significant capital expenditures, and our inability or failure to
maintain our telecommunications networks could have a material
impact on our market share and ability to generate revenue;
increases in broadband usage may cause network capacity
limitations, resulting in service disruptions or reduced capacity
for customers; we may be liable for material that content providers
distribute on our networks; cyber attacks or other breaches of
network or other information technology security could have an
adverse effect on our business; natural disasters, terrorists acts
or acts of war could cause damage to our infrastructure and result
in significant disruptions to our operations; the regulation of our
businesses by federal and state authorities may, among other
things, place us at a competitive disadvantage, restrict our
ability to price our products and services and threaten our
operating licenses; we depend on a number of third party providers,
and the loss of, or problems with, one or more of these providers
may impede our growth or cause us to lose customers; a failure of
back-office information technology systems could adversely affect
our results of operations and financial condition; if we fail to
extend or renegotiate our collective bargaining agreements with our
labor union when they expire or if our unionized employees were to
engage in a strike or other work stoppage, our business and
operating results could be materially harmed; the loss of any of
the senior management team or attrition among key sales associates
could adversely affect our business, financial condition, results
of operations and cash flows; our debt could limit our ability to
fund operations, raise additional capital, and fulfill our
obligations, which, in turn, would have a material adverse effect
on our businesses and prospects generally; our indebtedness imposes
significant restrictions on us; we depend on our loans and credit
facilities to provide for our short-term financing requirements in
excess of amounts generated by operations, and the availability of
those funds may be reduced or limited; the servicing of our
indebtedness is dependent on our ability to generate cash, which
could be impacted by many factors beyond our control; we depend on
the receipt of dividends or other intercompany transfers from our
subsidiaries and investments; the trading price of our common
shares may be volatile, and the value of an investment in our
common shares may decline; the uncertain economic environment,
including uncertainty in the U.S. and world securities markets,
could impact our business and financial condition; our future cash
flows could be adversely affected if we are unable to fully realize
our deferred tax assets; adverse changes in the value of assets or
obligations associated with our employee benefit plans could
negatively impact shareowners’ deficit and liquidity; third parties
may claim that we are infringing upon their intellectual property,
and we could suffer significant litigation or licensing expenses or
be prevented from selling products; third parties may infringe upon
our intellectual property, and we may expend significant resources
enforcing our rights or suffer competitive injury; we could be
subject to a significant amount of litigation, which could require
us to pay significant damages or settlements; we could incur
significant costs resulting from complying with, or potential
violations of, environmental, health and human safety laws; the
possibility that the expected synergies and value creation from our
acquisition of Hawaiian Telcom will not be realized or will not be
realized within the expected time period; the risk that the
businesses of the Company and Hawaiian Telcom will not be
integrated successfully; the risk that unexpected costs will be
incurred; and the other risks and uncertainties detailed in our
filings with the SEC, including our Form 10-K report, Form 10-Q
reports and Form 8-K reports.
These forward-looking statements are based on information, plans
and estimates as of the date hereof and there may be other factors
that may cause our actual results to differ materially from these
forward-looking statements. We assume no obligation to update the
information contained in this release except as required by
applicable law.
Use of Non-GAAP Financial Measures
This press release contains information about adjusted earnings
before interest, taxes, depreciation and amortization (Adjusted
EBITDA), Adjusted EBITDA margin, net debt, net income (loss)
applicable to common shareholders excluding special items and free
cash flow. These are non-GAAP financial measures used by Cincinnati
Bell management when evaluating results of operations and cash
flow. Management believes these measures also provide users of the
financial statements with additional and useful comparisons of
current results of operations and cash flows with past and future
periods. Non-GAAP financial measures should not be construed as
being more important than comparable GAAP measures. Detailed
reconciliations of these non-GAAP financial measures to comparable
GAAP financial measures have been included in the tables
distributed with this release and are available in the Investor
Relations section of www.cincinnatibell.com.
1Adjusted EBITDA provides a useful measure of operational
performance. The company defines Adjusted EBITDA as GAAP operating
income plus depreciation, amortization, stock based compensation,
restructuring and severance related charges, (gain) loss on sale or
disposal of assets, transaction and integration costs, asset
impairments, and other special items. Adjusted EBITDA should not be
considered as an alternative to comparable GAAP measures of
profitability and may not be comparable with the measure as defined
by other companies.
Adjusted EBITDA margin provides a useful measure of
operational performance. The company defines Adjusted EBITDA margin
as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin
should not be considered as an alternative to comparable GAAP
measures of profitability and may not be comparable with the
measure as defined by other companies.
2Free cash flow provides a useful measure of operational
performance, liquidity and financial health. The company defines
free cash flow as cash provided by (used in) operating activities,
adjusted for restructuring and severance related payments,
transaction and integration payments, less capital expenditures and
preferred stock dividends. Free cash flow should not be considered
as an alternative to net income (loss), operating income (loss),
cash flow from operating activities, or the change in cash on the
balance sheet and may not be comparable with free cash flow as
defined by other companies. Although the company believes there is
no comparable GAAP measure for free cash flow, the attached
financial information reconciles cash provided by operating
activities to free cash flow.
Net debt provides a useful measure of liquidity and
financial health. The company defines net debt as the sum of the
face amount of short-term and long-term debt, unamortized premium
and/or discount and unamortized note issuance costs, offset by cash
and cash equivalents.
Net income (loss) applicable to common shareholders excluding
special items in total and per share provides a useful measure
of operating performance. Net income (loss) applicable to common
shareholders excluding special items should not be considered as an
alternative to comparable GAAP measures of profitability and may
not be comparable with net income (loss) excluding special items as
defined by other companies.
About Cincinnati Bell Inc.
With headquarters in Cincinnati, Ohio, Cincinnati Bell Inc.
(NYSE: CBB) delivers integrated communications solutions to
residential and business customers over its fiber-optic and copper
networks including high-speed internet, video, voice and data.
Cincinnati Bell provides service in areas of Ohio, Kentucky,
Indiana and Hawaii. In addition, enterprise customers across the
United States and Canada rely on CBTS and OnX, wholly-owned
subsidiaries, for efficient, scalable office communications systems
and end-to-end IT solutions. For more information, please visit
www.cincinnatibell.com. The
information on the Company’s website is not incorporated by
reference in this press release.
Cincinnati Bell Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in millions, except per share amounts)
Three Months Ended March 31,
Change 2019 2018 $ %
Revenue $ 379.6 $ 295.7 $ 83.9 28%
Costs and
expenses Cost of services and products 197.7 149.4 48.3 32%
Selling, general and administrative 86.1 68.4 17.7 26% Depreciation
and amortization 79.4 51.2 28.2 55% Restructuring and severance
related charges 3.3 0.3 3.0 n/m Transaction and integration costs
3.0 2.2 0.8 36% Operating income 10.1
24.2 (14.1 ) (58)% Interest expense 35.1 30.8 4.3 14% Other
components of pension and postretirement benefit plans expense 2.6
3.3 (0.7 ) (21)% Other income, net (1.0 ) (0.4 ) (0.6 ) n/m
Loss before income taxes (26.6 ) (9.5 ) (17.1 ) n/m Income tax
expense (benefit) 0.3 (1.2 ) 1.5 n/m
Net
loss (26.9 ) (8.3 ) (18.6 ) n/m Preferred stock
dividends 2.6 2.6 — 0%
Net loss
applicable to common shareowners $ (29.5 ) $ (10.9 ) $ (18.6 )
n/m
Basic and diluted net loss per common share $
(0.59 ) $ (0.26 )
Weighted average common shares
outstanding (in millions)
- Basic 50.3 42.3 - Diluted 50.3 42.3
Cincinnati
Bell Inc. Entertainment and Communications Income
Statement (Unaudited) (Dollars in millions)
Three Months Ended
March 31, Change 2019 2018 $
% Income Statement Revenue $ 250.3 $ 174.2 $ 76.1 44%
Operating costs and expenses Cost of services and products
115.3 77.6 37.7 49% Selling, general and administrative 44.5 27.1
17.4 64% Depreciation and amortization 62.7 40.9 21.8 53%
Restructuring and severance related charges 3.3 — 3.3
n/m Total operating costs and expenses 225.8
145.6 80.2 55% Operating income $ 24.5
$ 28.6 $ (4.1 ) (14)%
Cincinnati Bell Inc.
Entertainment and Communications Revenue (Unaudited)
(Dollars in millions)
Three Months Ended Three Months
Ended March 31, 2019 March 31, 2018
Cincinnati Hawaii Total Cincinnati
Hawaii Total Revenue Consumer / SMB
Fiber * Data $ 37.4 $ 7.9 $ 45.3 $ 34.4 $ — $ 34.4 Video 40.2 11.5
51.7 39.2 — 39.2 Voice 9.2 2.8 12.0 9.1 — 9.1 Other 0.3 0.2
0.5 0.3 — 0.3 Total Consumer / SMB
Fiber 87.1 22.4 109.5 83.0 —
83.0 Enterprise Fiber Data 21.1 9.2 30.3 20.8 — 20.8
Legacy Data 26.0 15.9 41.9 29.7 — 29.7 Voice 33.0 28.4 61.4 37.9 —
37.9 Other 3.5 3.7 7.2 2.8 — 2.8
Total Legacy 62.5 48.0 110.5 70.4 —
70.4 Total Entertainment & Communications $ 170.7
$ 79.6 $ 250.3 $ 174.2 $ — $
174.2 * Represents Fioptics in Cincinnati
Cincinnati Bell Inc. Entertainment and Communications
Metric Information (Unaudited) (In thousands)
March
31, December 31, September 30, June 30,
March 31, 2019 2018 2018 2018
2018 Cincinnati Metrics Fioptics
Data
Internet FTTP * 207.6 201.5 196.8 192.7 187.8 Internet FTTN * 35.7
37.5 39.8 42.6 45.0 Total Fioptics
Internet 243.3 239.0 236.6 235.3 232.8
Video
Video FTTP 115.2 115.0 115.6 118.1 118.1 Video FTTN 24.0
24.9 25.9 27.0 28.2 Total Fioptics Video 139.2
139.9 141.5 145.1 146.3
Voice
Fioptics Voice Lines 109.0 107.6 107.0 107.6 106.9
Fioptics Units
Passed
Units Passed FTTP 477.6 472.3 459.1 449.3 440.5 Units Passed FTTN
138.5 138.7 139.5 139.9 140.3 Total
Fioptics Units Passed 616.1 611.0 598.6 589.2 580.8
Enterprise Fiber
Data
Ethernet Bandwidth (Gb) 4,540 4,565 4,331 4,133 4,046
Legacy
Data
DSL 69.6 72.0 74.1 75.2 78.1
Voice
Legacy Voice Lines 218.0 226.2 232.7 240.6 251.4 * Fiber to
the Premise (FTTP), Fiber to the Node (FTTN)
Cincinnati Bell Inc. Entertainment and
Communications Metric Information (Unaudited) (In
thousands) March 31,
December 31, September 30, 2019 2018
2018 Hawaii Metrics Consumer / SMB
Fiber
Data
Internet FTTP * 52.7 51.6 49.5 Internet FTTN * 13.9 14.3
14.5 Total Consumer / SMB Fiber Internet 66.6 65.9 64.0
Video
Video FTTP 33.5 33.8 33.3 Video FTTN 14.3 15.0 15.3
Total Consumer / SMB Fiber Video 47.8 48.8 48.6
Voice
Consumer / SMB Fiber Voice Lines 30.3 30.3 29.9
Consumer / SMB Fiber
Units Passed **
Units Passed FTTP 168.1 167.0 163.6 Units Passed FTTN 73.4
73.5 73.3 Total Consumer / SMB Fiber Units Passed 241.5
240.5 236.9
Enterprise Fiber
Data
Ethernet Bandwidth (Gb) 2,413 2,091 1,948
Legacy
Data
DSL 47.2 48.7 50.4
Voice
Legacy Voice Lines 192.8 197.8 203.4 * Fiber to the Premise
(FTTP), Fiber to the Node (FTTN) ** Includes units passed for both
consumer and business on Oahu and neighboring islands.
Cincinnati Bell Inc. IT Services and Hardware
Income Statement and Metric Information (Unaudited)
(Dollars in millions) Three
Months Ended March 31, Change
2019 2018 $ % Income
Statement Revenue $ 136.3 $ 127.6 $ 8.7 7% Operating
costs and expenses Cost of services and products 89.2 77.7 11.5 15%
Selling, general and administrative 37.2 38.0 (0.8 ) (2)%
Depreciation and amortization 16.7 10.2 6.5 64% Restructuring and
severance related charges — 0.3 (0.3 ) n/m
Total operating costs and expenses 143.1 126.2 16.9
13% Operating Income $ (6.8 ) $ 1.4 $ (8.2 )
n/m
Revenue Consulting $ 38.9 $ 31.3 $ 7.6 24% Cloud
24.4 22.6 1.8 8% Communications 47.4 40.6 6.8 17% Infrastructure
Solutions 25.6 33.1 (7.5 ) (23)% Total IT Services
and Hardware Revenue $ 136.3 $ 127.6 $ 8.7 7%
March 31, December 31,
September 30, June 30, March
31, 2019 2018 2018 2018 2018
Consulting Billable Resources 1039 1039 999 926 888
Communications NaaS Locations 2,550 2257 1,101 782
564 SD - WAN Locations 1,002 803 488 310 117 Hosted UCaaS Profiles*
244,482 239,581 223,311 192,175 178,457 * Includes
Hawaii Hosted UCaaS Profiles beginning September 30, 2018
Cincinnati Bell Inc. Net Debt (Non-GAAP)
(Unaudited) (Dollars and shares in millions)
March 31, December 31, 2019
2018 Receivables Facility $ 175.8 $ 176.6 Credit
Agreement - Tranche B Term Loan due 2024 597.0 598.5 Credit
Agreement - Revolving Credit Facility 15.0 18.0 7 1/4% Senior Notes
due 2023 22.3 22.3 7% Senior Notes due 2024 625.0 625.0 8% Senior
Notes due 2025 350.0 350.0 Cincinnati Bell Telephone Notes 87.9
87.9 Other financing lease agreements 3.1 3.1 Capital leases 80.7
73.9 Net unamortized premium 1.6 1.7 Unamortized note issuance
costs (26.1 ) (27.2 ) Total debt 1,932.3 1,929.8
Less: Cash and cash equivalents (3.9 ) (15.4 ) Net debt
(Non-GAAP) $ 1,928.4 $ 1,914.4
Cincinnati
Bell Inc. Reconciliation of Net Income (GAAP) to Adjusted
EBITDA (Non-GAAP) (Unaudited) (Dollars in
millions)
Three Months Ended March 31, 2019
Entertainment & IT Services &
Total Communications Hardware
Corporate Company Net loss (GAAP) $
(26.9 ) Add: Income tax expense 0.3 Interest expense 35.1 Other
income, net (1.0 ) Other components of pension and postretirement
benefit plans expense 2.6
Operating income (loss)
(GAAP) $ 24.5 $ (6.8 ) $ (7.6 ) $ 10.1 Add: Depreciation and
amortization 62.7 16.7 — 79.4 Restructuring and severance related
charges 3.3 — — 3.3 Transaction and integration costs — — 3.0 3.0
Stock-based compensation — — 1.8 1.8
Adjusted EBITDA (Non-GAAP) $ 90.5 $ 9.9 $ (2.8
) $ 97.6
Adjusted EBITDA Margin (Non-GAAP) 36
% 7 % — 26 %
Three Months Ended March 31, 2018 Entertainment &
IT Services & Total Communications
Hardware Corporate Company Net loss
(GAAP) $ (8.3 ) Add: Income tax benefit (1.2 ) Interest expense
30.8 Other income, net (0.4 ) Other components of pension and
postretirement benefit plans expense 3.3
Operating
income (loss) (GAAP) $ 28.6 $ 1.4 $ (5.8 ) $ 24.2 Add:
Depreciation and amortization 40.9 10.2 0.1 51.2 Restructuring and
severance related charges — 0.3 — 0.3 Transaction and integration
costs — — 2.2 2.2 Stock-based compensation — — 0.9
0.9
Adjusted EBITDA (Non-GAAP) $ 69.5 $
11.9 $ (2.6 ) $ 78.8
Adjusted EBITDA Margin
(Non-GAAP) 40 % 9 % — 27 %
Year-over-year dollar
change in Adjusted EBITDA $ 21.0 $ (2.0 ) $ (0.2 ) $ 18.8
Year-over-year percentage change in Adjusted EBITDA
30 % (17 )% 8 % 24 %
Cincinnati Bell Inc.
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions) Three
Months Ended March 31, 2019 2018
Cash provided by operating activities $ 56.8 $ 58.5
Capital expenditures (56.5 ) (32.7 ) Acquisitions of
businesses — (2.8 ) Other, net (0.1 ) (0.1 ) Cash used in
investing activities (56.6 ) (35.6 ) Net decrease in
corporate credit and receivables facilities with initial maturities
less than 90 days (3.8 ) — Repayment of debt (4.5 ) (3.0 ) Debt
issuance costs (0.1 ) (0.4 ) Dividends paid on preferred stock (2.6
) (2.6 ) Other, net (0.8 ) (2.0 ) Cash used in financing
activities (11.8 ) (8.0 ) Effect of exchange rate changes on
cash, cash equivalents and restricted cash 0.1 0.8
Net (decrease) increase in cash, cash equivalents and
restricted cash (11.5 ) 15.7 Cash, cash equivalents and restricted
cash at beginning of period 15.4 396.5 Cash,
cash equivalents and restricted cash at end of period $ 3.9
$ 412.2
Reconciliation of Cash Provided by
Operating Activities (GAAP) to Free Cash Flow (Non-GAAP)
Cash provided by operating activities $ 56.8 $ 58.5 Adjustments:
Capital expenditures (56.5 ) (32.7 ) Restructuring and severance
related payments 6.8 7.3 Preferred stock dividends (2.6 ) (2.6 )
Transaction and integration costs 1.8 2.2 Free
cash flow (Non-GAAP) $ 6.3 $ 32.7 Income tax
payments (refunds) $ 1.1 $ (0.1 )
Cincinnati Bell
Inc. Capital Expenditures (Unaudited) (Dollars
in millions) Three Months
Ended March 31, 2019 December 31, 2018
September 30, 2018 June 30, 2018 March 31,
2018 Entertainment and Communications Cincinnati $ 30.8
$ 50.5 $ 41.4 $ 31.8 $ 27.6 Hawaii 20.3 21.8 20.9
— — Total Entertainment and Communications
51.1 72.3 62.3 31.8 27.6 IT Services and Hardware 5.4 7.4
7.4 6.5 5.1 Corporate — 0.2 — — —
Total capital expenditures $ 56.5 $ 79.9
$ 69.7 $ 38.3 $ 32.7
Cincinnati Bell Inc. Reconciliation of Net (Loss) Income
Applicable to Common Shareholders (GAAP) to Net (Loss) Income
Applicable to Common Shareholders, Excluding Special Items
(Non-GAAP) and Adjusted Diluted Earnings Per Share (Non-GAAP)
(Unaudited) (Dollars in millions, except
per share amounts) Three Months Ended
March 31, 2019 March 31, 2018 Net loss
applicable to common shareholders (GAAP) $ (29.5 ) $ (10.9 )
Special items: Restructuring and severance related charges 3.3 0.3
Transaction and integration costs 3.0 2.2 Income tax effect of
special items * (0.9 ) 0.4 Total special items 5.4 2.9
Net loss applicable to common shareowners, excluding
special items (Non-GAAP) $ (24.1 ) $ (8.0 ) Weighted average
diluted shares outstanding** 50.3 42.3 Diluted
loss per common share (GAAP) $ (0.59 ) $ (0.26 ) Adjusted
diluted loss per common share (Non-GAAP) $ (0.48 ) $ (0.19 )
* Special items have been tax effected utilizing the
normalized effective tax rate for the period, with the exception of
transaction and integration costs, which are treated as a discrete
item ** Weighted average diluted shares outstanding based on
net (loss) income applicable to common shareowners, excluding
special items (Non-GAAP).
Cincinnati Bell Inc.
Reconciliation of Operating Income (GAAP) Guidance to Adjusted
EBITDA (Non-GAAP) Guidance (Unaudited)
(Dollars in millions)
Low High 2019 Operating Income (GAAP) Guidance
Range $ 82 $ 97 Add: Depreciation and
amortization 300 295 Restructuring and severance related charges 5
5 Transaction and integration costs 5 5 Stock compensation expense
8 8
2019 Adjusted EBITDA (Non-GAAP) Guidance Range
$ 400 $ 410
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190508005389/en/
Cincinnati Bell Inc.
Investor contact:Kei Lawson,
513-565-0510Takeitha.Lawson@cinbell.com
Media contact:Josh Pichler,
513-565-0310Josh.Pichler@cinbell.com
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From Apr 2023 to Apr 2024