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Cincinnati Bell Announces Improved Performance for Fourth Quarter and Full Year 2005; Wireless and DSL Subscriber Momentum Continues; Growth in Data and Technology Products and Services Lead to Strong Revenue and Cash Flow Performance

02/10/06

CINCINNATI--(BUSINESS WIRE)--Feb. 10, 2006--Cincinnati Bell Inc. (NYSE:CBB) announced today that for the fourth quarter it recorded strong wireless and DSL subscriber growth, improved access line performance and solid operational results.

Quarterly revenue of $305 million was up $5 million from the fourth quarter of 2004. Net income was $13 million or 4 cents per share. Excluding the impact of a restructuring charge and a non-cash impairment charge, net income was $20 million or 7 cents per share. The impairment reduces the net book value of Cincinnati Bell's legacy TDMA wireless network to its fair market value of less than $1 million and is the result of continuing successful migration of customers to its GSM network.

"The past twelve months have been a period of dramatic transformation for Cincinnati Bell," said Jack Cassidy, president and chief executive officer. "We succeeded in strengthening our balance sheet by completing a major debt refinancing. We defended and strengthened our core access line business with continued success in bundling. Furthermore, we delivered the best wireless network and broadband value in Cincinnati and built subscriber momentum that we expect to continue in 2006."

For the year ended December 31, 2005, Cincinnati Bell recorded revenue of $1.2 billion, up $3 million from 2004. Previously reported special items, which are included in the attached financial information, totaled $125 million and reduced net income to a net loss for the year of $65 million or 30 cents per share. Net income excluding the impact of these special items was $61 million or 20 cents per share.


    Performance Highlights

    --  Growing wireless subscriber momentum resulted in quarterly net
        postpaid additions of 15,000, the best performance since the
        fourth quarter of 2001. Net prepaid additions in the quarter
        totaled 9,000, more than double the fourth quarter of 2004.
        Consistently better wireless network quality resulted in
        continued improvement in postpaid churn to 1.8 percent, the
        fifth consecutive quarter of improvement. Subscriber migration
        to the GSM network continued with less than 10 percent of
        total subscriber minutes of use now occurring on the TDMA
        network.

    --  Capping off a year of continued growth, quarterly DSL net
        additions were 9,000, a fourth quarter record and an increase
        of 13 percent from the same time a year ago. Year-end DSL
        subscribers totaled 163,000, representing a gain of 24 percent
        over the prior year. DSL penetration of in-territory primary
        consumer access lines reached 26 percent, up from 19 percent a
        year ago. Total in-territory access line DSL penetration
        increased 4 percentage points to 18 percent. Cincinnati Bell
        continues to have the highest DSL penetration among publicly
        traded local exchange carriers.

    --  Reflecting its bundling success, the company's "Super Bundle"
        subscriber base surpassed 150,000, an increase of 22 percent
        from a year ago and a 26 percent penetration of in-territory
        households.

    --  The extinguishment of Cincinnati Bell's 16 percent Notes
        improved free cash flow(1) by $9 million and reduced interest
        expense by $16 million in 2005.

    --  Cincinnati Bell met or exceeded its 2005 financial guidance:

      Category        2005 Actual Results         2005 Guidance
----------------------------------------------------------------------
Revenue               $1.2 billion;           Low single-digit
                       essentially            percent decline
                       unchanged from
                       2004
----------------------------------------------------------------------
Adjusted EBITDA(2)    $476 million            $470 million to $480
                                              million
----------------------------------------------------------------------
Free Cash Flow        $152 million            Approximately
                                              $145 million
----------------------------------------------------------------------
Capital Expenditures  $143 million;           Approximately 12%
                      12% of revenue          of revenue
----------------------------------------------------------------------

Financial and Operations Review

"The year's performance reflects continued strong cash flow, which enables us to both invest in new customer growth and reduce our outstanding debt," said Brian Ross, chief financial officer. "Cost savings associated with transforming the company's cost structure and stronger contributions from our long distance, data center, and DSL operations helped offset the impact of lower local voice and wireless revenue."

Cincinnati Bell recorded improved revenue and adjusted EBITDA in the fourth quarter. Revenue totaled $305 million, up $5 million from the fourth quarter of 2004. Quarterly adjusted EBITDA was $117 million, up $3 million on a sequential basis and down $1 million from a year ago. In the quarter, the company benefited from the reversal of a $7 million operating tax reserve.

For the year, total revenue of $1.2 billion exceeded company guidance and represented an increase of 3 percent from 2004 after adjusting for revenue associated with assets sold in 2004 and the impact of reduced wireless roaming revenue due to the merger of AT&T Wireless and Cingular. Adjusted EBITDA of $476 million in 2005 is down $22 million from 2004. The decline roughly equals the $20 million increase in non-cash post-retirement medical and pension expenses.

Quarterly free cash flow increased 18 percent from a year ago to $61 million and free cash flow for the year of $152 million was approximately unchanged from 2004 after normalizing for refinancing activities. Capital expenditures in 2005 totaled $143 million, or 12 percent of revenue, in line with company guidance.

Local Communications Services

Quarterly access line performance of Cincinnati Bell Telephone (CBT) improved sequentially as in-territory access line decline slowed. A loss of 9,000 in-territory lines in the fourth quarter compared favorably to the loss of 12,000 lines in the third quarter of 2005. Wireless substitution continued to be the primary driver of in-territory access line decline. Out-of-territory operations expanded to 38,000 lines, up 25 percent from the end of 2004.

The Local segment produced fourth quarter revenue of $189 million, an increase of 1 percent from the third quarter. Adjusted EBITDA was $97 million, up $2 million from the third quarter. Revenue for the year was $756 million as higher data revenue partially offset lower voice revenue. Adjusted EBITDA of $386 million for the year was approximately even with 2004 after adjusting for a $20 million increase in non-cash post-retirement medical and pension expenses.

Wireless Services

Cincinnati Bell Wireless accelerated its subscriber growth momentum by increasing its postpaid subscribers by 15,000, the best performance since the fourth quarter of 2001. Fourth quarter postpaid gross activations were 31,000, up 33 percent on a sequential basis. In addition, superior network quality led to improved postpaid churn of 1.8 percent versus 2.8 percent in the fourth quarter of 2004. Prepaid gross activations were up 36 percent on a sequential basis driven by broad market acceptance of new rate plans. Net prepaid additions of 9,000 were more than double the fourth quarter of 2004.

The Wireless segment generated quarterly revenue of $58 million, equal to the third quarter of 2005. Adjusted EBITDA for the quarter was $6 million. The segment produced revenue of $238 million in 2005 compared to $262 million a year ago as growth in equipment and data revenue partially offset lower subscriber voice revenue and a reduction in roaming revenue related to the merger of AT&T and Cingular. Adjusted EBITDA for the year was $52 million, down $20 million from 2004 due to lower ARPU (Average Revenue per User) levels and increased customer acquisition expense, which includes handset costs associated with migrations to the GSM network.

Hardware and Managed Services

Cincinnati Bell's Hardware and Managed Services segment includes data center operations, information technology consulting and related equipment sales. For the fourth quarter, revenue of $47 million was up $14 million from a year ago. Revenue for the full year increased to $173 million reflecting higher levels of equipment sales and managed services revenue coming from expanded data center operations. Quarterly adjusted EBITDA was $5 million, up 21 percent compared to the fourth quarter of 2004. Full-year adjusted EBITDA was $16 million, up 18 percent from 2004.

Other Communications Services

Cincinnati Bell's long distance operations, included in the Other Communications Services segment, continued to increase its market share as measured by the number of CBT lines for which a long distance carrier was selected. At the end of 2005, market share was 80 percent in the consumer market and 52 percent in the business market, improvements of 5 points and 4 points, respectively, compared to the same time a year ago.

The segment produced revenue of $19 million and adjusted EBITDA of $7 million in the fourth quarter. For the year, revenue was $78 million, up $6 million when excluding $7 million in revenue associated with assets sold in 2004. Increased contributions from new long distance business products partially offset a decline in payphone and other revenue due to the sale of low-margin assets. For the year, adjusted EBITDA increased $9 million to $28 million as a result of the previously mentioned revenue growth and the benefit of an improved cost structure in long distance operations.

2006 Guidance

Cincinnati Bell is providing the following guidance for 2006:

           Category                           Guidance
----------------------------------------------------------------------
Revenue                             Approx. flat at $1.2 billion
----------------------------------------------------------------------
Adjusted EBITDA                         Approx. $460 million
----------------------------------------------------------------------
Capital Expenditures                   Approx. 12% of revenue
----------------------------------------------------------------------
Free Cash Flow                     Approx. flat at $152 million(a)
----------------------------------------------------------------------

(a) Excludes the company's 2006 first quarter $83 million purchase of
    the 20% minority stake of Cincinnati Bell Wireless currently owned
    by Cingular.

Conference Call/Webcast

Cincinnati Bell will host a conference call today at 10:00 a.m. (EST) to discuss its results for the fourth quarter and full year 2005. A live webcast of the call will be available via the Investor Relations section of www.cincinnatibell.com. The conference call dial-in number is 866.278.7926. International callers may dial 678.460.1872. A taped replay call will be available one hour after the conclusion of the teleconference until 5:00 p.m. (EST) on February 24, 2006. For U.S. callers, the replay will be available at 888.284.7564. For international callers, the replay will be available at 904.596.3174. The replay reference number is 183491. An archived version of the webcast will also be available at www.cincinnatibell.com.

Safe Harbor Note

Certain of the statements and predictions contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In particular, statements, projections or estimates that include or reference the words "believes," "anticipates," "plans," "intends," "expects," "will," or any similar expression fall within the safe harbor for forward-looking statements contained in the Reform Act. Actual results or outcomes may differ materially from those indicated or suggested by any such forward-looking statement for a variety of reasons, including, but not limited to: Cincinnati Bell's ability to maintain its market position in communications services, including wireless, wireline and internet services; general economic trends affecting the purchase or supply of telecommunication services; world and national events that may affect the ability to provide services; changes in the regulatory environment; any rulings, orders or decrees that may be issued by any court or arbitrator; restrictions imposed under various credit facilities and debt instruments; work stoppages caused by labor disputes; adjustments resulting from year-end audit procedures; and Cincinnati Bell's ability to develop and launch new products and services. More information on potential risks and uncertainties is available in recent filings with the Securities and Exchange Commission, including Cincinnati Bell's Form 10-K report, Form 10-Q reports and Form 8-K reports. The forward-looking statements included in this release represent company estimates as of February 10, 2006. Cincinnati Bell anticipates that subsequent events and developments will cause its estimates to change.

Use of Non-GAAP Financial Measures

This press release contains information about free cash flow, net debt, adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) and net income excluding certain charges. 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 net debt, free cash flow, adjusted EBITDA, and net income excluding certain charges 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.

(1) Free cash flow provides a useful measure of operational performance, liquidity and financial health. The company defines free cash flow as SFAS 95 cash provided by (used in) operating, financing and investing activities, less changes in issuance and repayment of long-term debt and credit facilities in financing activities and less proceeds from the sale of discontinued operations and assets in investing activities. 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.

(2) Adjusted EBITDA provides a useful measure of operational performance. The company defines adjusted EBITDA as GAAP Operating Income plus depreciation, amortization, restructuring charges, 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 Adjusted EBITDA as defined by other companies.

About Cincinnati Bell Inc.

Cincinnati Bell Inc. (NYSE:CBB) is parent to one of the nation's most-respected and best-performing local exchange and wireless providers with a legacy of unparalleled customer service excellence. With headquarters in Cincinnati, Ohio, Cincinnati Bell provides a wide range of telecommunications products and services to residential and business customers in Ohio, Kentucky and Indiana. For more information, visit www.cincinnatibell.com.

Cincinnati Bell Inc.
Consolidated Statements of Income
(Unaudited)

(dollars in millions, except per share amounts)

                     Three Months              Twelve Months
                  Ended December 31,   %    Ended December 31,    %
                    2005     2004    Change   2005      2004    Change
                  --------- -------- ------ --------- --------- ------

Revenue             $305.3   $299.8      2% $1,209.6  $1,207.1      0%

Costs and expenses
   Cost of services
    and products     138.8    120.0     16%    512.3     481.4      6%
   Selling, general
    and
    administrative    49.7     62.0   (20%)    221.0     227.6    (3%)
   Depreciation and
    amortization      41.5     45.0    (8%)    174.7     187.7    (7%)
   Restructuring
    charges            1.1     11.4   (90%)      1.1      11.6   (91%)
   Asset
    impairments and
    other charges     18.6      1.7    n/m      41.7       3.2    n/m
   Gain on sale of
    broadband
    assets               -     (3.7)   n/m         -      (3.7)   n/m
                  --------- --------        --------- ---------

      Operating
       income         55.6     63.4   (12%)    258.8     299.3   (14%)

Minority interest
 income               (5.2)    (2.0)   160%    (11.0)     (0.5)   n/m
Interest expense      37.3     51.3   (27%)    184.4     203.3    (9%)
Loss on
 extinguishment of
 debt                    -        -    n/m      99.8         -    n/m
Other income, net     (2.7)    (3.2)  (16%)     (4.2)     (3.8)    11%
                  --------- --------        --------- ---------

Income (loss)
 before income
 taxes                26.2     17.3     51%    (10.2)    100.3  (110%)
Income tax expense
 (benefit)            13.6     (3.6)   n/m      54.3      36.1     50%
                  --------- --------        --------- ---------

Net income (loss)     12.6     20.9   (40%)    (64.5)     64.2    n/m

Preferred stock
 dividends             2.6      2.6      0%     10.4      10.4      0%
                  --------- --------        --------- ---------

Net income (loss)
 applicable to
 common shareowners  $10.0    $18.3   (45%)   $(74.9)    $53.8    n/m
                  ========= ========        ========= =========


Basic earnings
 (loss) per common
 share               $0.04    $0.07           $(0.30)    $0.22
----------------- ========= ========        ========= =========

Diluted earnings
 (loss) per common
 share               $0.04    $0.07           $(0.30)    $0.21
----------------- ========= ========        ========= =========

Weighted average
 common shares
 outstanding
 (millions)
----------------
   - Basic           246.2    245.2            245.9     245.1
   - Diluted         250.8    248.6            245.9     250.5



Cincinnati Bell Inc.
Segment Information
(Unaudited)

(dollars in millions)

                      Three Months             Twelve Months
                   Ended December 31,   %    Ended December 31,   %
                     2005     2004    Change  2005      2004    Change
                   --------- -------- ------ -------- --------- ------
 Local
Revenue
   Voice             $122.5   $128.3    (5%)  $500.4    $519.8    (4%)
   Data                56.9     52.2      9%   219.2     203.9      8%
   Other                9.1     10.3   (12%)    36.0      38.0    (5%)
                   --------- --------        -------- ---------

Total revenue         188.5    190.8    (1%)   755.6     761.7    (1%)

Operating costs and
 expenses:
   Cost of services
    and products       61.1     54.8     11%   236.1     220.2      7%
   Selling, general
    and
    administrative     30.7     34.9   (12%)   133.7     134.8    (1%)
   Depreciation        27.1     27.6    (2%)   108.2     117.2    (8%)
   Restructuring        1.5     10.2   (85%)     1.5      10.4   (86%)
                   --------- --------        -------- ---------

   Total operating
    costs and
    expenses          120.4    127.5    (6%)   479.5     482.6    (1%)
                   --------- --------        -------- ---------

Operating income      $68.1    $63.3      8%  $276.1    $279.1    (1%)
                   ========= ========        ======== =========

 Wireless
Revenue
   Service            $51.5    $57.2   (10%)  $214.8    $242.0   (11%)
   Equipment            6.3      7.1   (11%)    22.7      19.7     15%
                   --------- --------        -------- ---------

   Total revenue       57.8     64.3   (10%)   237.5     261.7    (9%)

Operating costs and
 expenses:
   Cost of services
    and products       37.1     37.5    (1%)   129.3     133.2    (3%)
   Selling, general
    and
    administrative     14.9     17.7   (16%)    56.1      56.5    (1%)
   Depreciation        13.1     14.4    (9%)    61.5      58.3      5%
   Amortization           -      2.0    n/m        -       9.1    n/m
   Restructuring          -      0.1    n/m        -       0.1    n/m
   Asset
    impairments and
    other charges      18.6      1.8    n/m     42.3       5.9    n/m
                   --------- --------        -------- ---------

   Total operating
    costs and
    expenses           83.7     73.5     14%   289.2     263.1     10%
                   --------- --------        -------- ---------

Operating loss       $(25.9)   $(9.2)   182%  $(51.7)    $(1.4)   n/m
                   ========= ========        ======== =========

 Hardware & Managed
  Services
Revenue
   Hardware           $29.8    $17.1     74%  $106.6     $74.0     44%
   Managed services    17.7     16.6      7%    66.1      60.7      9%
                   --------- --------        -------- ---------

   Total revenue       47.5     33.7     41%   172.7     134.7     28%

Operating costs and
 expenses:
   Cost of services
    and products       38.4     25.5     51%   139.5     104.7     33%
   Selling, general
    and
    administrative      4.4      4.4      0%    17.4      16.7      4%
   Depreciation         0.6      0.5     20%     2.3       1.1    109%
   Restructuring        0.1      0.6   (83%)     0.1       0.6   (83%)
   Asset
    impairments and
    other charges
    (credits)           0.1        -    n/m        -      (1.1)   n/m
                   --------- --------        -------- ---------

   Total operating
    costs and
    expenses           43.6     31.0     41%   159.3     122.0     31%
                   --------- --------        -------- ---------

Operating income       $3.9     $2.7     44%   $13.4     $12.7      6%
                   ========= ========        ======== =========

 Other
Revenue               $19.4    $20.0    (3%)   $77.7     $78.6    (1%)

Operating costs and
 expenses:
   Cost of services
    and products        8.2      9.1   (10%)    33.4      44.5   (25%)
   Selling, general
    and
    administrative      4.1      4.2    (2%)    15.8      14.3     10%
   Depreciation         0.5      0.5      0%     1.9       1.7     12%
   Restructuring          -      0.2    n/m        -       0.2    n/m
   Asset
    impairments and
    other charges
    (credits)             -     (0.1)   n/m        -      (0.1)   n/m
                   --------- --------        -------- ---------

   Total operating
    costs and
    expenses           12.8     13.9    (8%)    51.1      60.6   (16%)
                   --------- --------        -------- ---------

Operating income       $6.6     $6.1      8%   $26.6     $18.0     48%
                   ========= ========        ======== =========



Cincinnati Bell Inc.
Segment Information
(Unaudited)

(dollars in millions)

                     Three Months              Twelve Months
                  Ended December 31,   %    Ended December 31,    %
                   2005      2004    Change   2005      2004    Change
                  -------- --------- ------ --------- --------- ------
Revenue
  Local            $188.5    $190.8    (1%)   $755.6    $761.7    (1%)
  Wireless           57.8      64.3   (10%)    237.5     261.7    (9%)
  Hardware &
   Managed
   Services          47.5      33.7     41%    172.7     134.7     28%
  Other              19.4      20.0    (3%)     77.7      78.6    (1%)
  Broadband             -         -    n/m         -         -    n/m
  Corporate and
   eliminations      (7.9)     (9.0)  (12%)    (33.9)    (29.6)    14%
                  -------- ---------        --------- ---------

  Total revenue    $305.3    $299.8      2% $1,209.6  $1,207.1      0%
                  ======== =========        ========= =========

Cost of Services
 and Products
  Local             $61.1     $54.8     11%   $236.1    $220.2      7%
  Wireless           37.1      37.5    (1%)    129.3     133.2    (3%)
  Hardware &
   Managed
   Services          38.4      25.5     51%    139.5     104.7     33%
  Other               8.2       9.1   (10%)     33.4      44.5   (25%)
  Broadband             -         -    n/m         -         -    n/m
  Corporate and
   eliminations      (6.0)     (6.9)  (13%)    (26.0)    (21.2)    23%
                  -------- ---------        --------- ---------

  Total cost of
   services and
   products        $138.8    $120.0     16%   $512.3    $481.4      6%
                  ======== =========        ========= =========

Selling, General &
 Administrative
  Local             $30.7     $34.9   (12%)   $133.7    $134.8    (1%)
  Wireless           14.9      17.7   (16%)     56.1      56.5    (1%)
  Hardware &
   Managed
   Services           4.4       4.4     0%      17.4      16.7      4%
  Other               4.1       4.2    (2%)     15.8      14.3     10%
  Broadband          (8.4)     (1.0)   n/m     (11.4)     (3.7)    n/m
  Corporate and
   eliminations       4.0       1.8    122%      9.4       9.0      4%
                  -------- ---------        --------- ---------

  Total selling,
   general &
   administrative   $49.7     $62.0   (20%)   $221.0    $227.6    (3%)
                  ======== =========        ========= =========

Depreciation and
 Amortization
  Local             $27.1     $27.6    (2%)   $108.2    $117.2    (8%)
  Wireless           13.1      16.4   (20%)     61.5      67.4    (9%)
  Hardware &
   Managed
   Services           0.6       0.5     20%      2.3       1.1    109%
  Other               0.5       0.5     0%       1.9       1.7     12%
  Broadband           0.1         -    n/m       0.1         -    n/m
  Corporate and
   eliminations       0.1         -    n/m       0.7       0.3    133%
                  -------- ---------        --------- ---------

  Total
   depreciation
   and
   amortization     $41.5     $45.0    (8%)   $174.7    $187.7    (7%)
                  ======== =========        ========= =========

Restructuring
  Local              $1.5     $10.2   (85%)     $1.5     $10.4   (86%)
  Wireless              -       0.1    n/m         -       0.1    n/m
  Hardware &
   Managed
   Services           0.1       0.6   (83%)      0.1       0.6   (83%)
  Other                 -       0.2    n/m         -       0.2    n/m
  Broadband          (0.5)     (1.8)  (72%)     (0.5)     (1.8)  (72%)
  Corporate and
   eliminations         -       2.1    n/m         -       2.1    n/m
                  -------- ---------        --------- ---------

  Total
   restructuring     $1.1     $11.4   (90%)     $1.1     $11.6   (91%)
                  ======== =========        ========= =========

Asset Impairments,
 Gain on Broadband
 Sale, and Other
 Charges (Credits)
  Local                $-        $-    n/m        $-        $-    n/m
  Wireless           18.6       1.8    n/m      42.3       5.9    n/m
  Hardware &
   Managed
   Services           0.1         -    n/m         -      (1.1)   n/m
  Other                 -      (0.1)   n/m         -      (0.1)   n/m
  Broadband             -      (3.6)   n/m      (0.5)     (5.2)  (90%)
  Corporate and
   eliminations      (0.1)     (0.1)     0%     (0.1)        -    n/m
                  -------- ---------        --------- ---------

  Total asset
   impairments,
   gain on
   Broadband sale,
   and other
   charges
   (credits)        $18.6     $(2.0)   n/m     $41.7     $(0.5)   n/m
                  ======== =========        ========= =========

Operating Income
  Local             $68.1     $63.3      8%   $276.1    $279.1    (1%)
  Wireless          (25.9)     (9.2)   182%    (51.7)     (1.4)   n/m
  Hardware &
   Managed
   Services           3.9       2.7     44%     13.4      12.7      6%
  Other               6.6       6.1      8%     26.6      18.0     48%
  Broadband           8.8       6.4     38%     12.3      10.7     15%
  Corporate and
   eliminations      (5.9)     (5.9)    0%     (17.9)    (19.8)  (10%)
                  -------- ---------        --------- ---------

  Total operating
   income           $55.6     $63.4   (12%)   $258.8    $299.3   (14%)
                  ======== =========        ========= =========



Cincinnati Bell Inc.
Consolidated Balance Sheets
(Unaudited)

       (dollars in millions, except segment metric information)

                                                   As of December 31,
                                                     2005      2004
                                                   --------- ---------

                      Assets

Cash and cash equivalents                             $25.7     $24.9
Receivables, less allowances                          160.9     139.0
Other current assets                                  106.9      89.3
Property, plant and equipment, net                    800.4     857.7
Goodwill and other intangible assets, net              76.7      76.7
Noncurrent deferred income tax benefits, net          609.6     656.7
Other noncurrent assets                                83.1     114.4
                                                   --------- ---------

  Total assets                                     $1,863.3  $1,958.7
                                                   ========= =========

       Liabilities and Shareowners' Deficit

Current portion of long-term debt                     $11.3     $30.1
Other current liabilities                             266.2     267.3
Long-term debt, less current portion                2,073.4   2,111.1
Other noncurrent liabilities                          221.9     135.5
Minority interest                                      28.2      39.2
Shareowners' deficit                                 (737.7)   (624.5)
                                                   --------- ---------

  Total liabilities and shareowners' deficit       $1,863.3  $1,958.7
                                                   ========= =========


Other Data:
-----------

Net debt                                           $2,069.2  $2,112.4
Credit facility availability                         $243.6    $377.8

Segment Metric Information (in thousands):
------------------------------------------

Local access lines                                    930.6     970.1
DSL subscribers                                       162.5     130.8
Custom Connections (Super Bundle) subscribers         150.3     123.4

GSM:
  Postpaid wireless subscribers                       251.2     119.3
  Prepaid wireless subscribers                        148.4      87.5
TDMA:
  Postpaid wireless subscribers                        63.9     187.0
  Prepaid wireless subscribers                         32.1      87.2
                                                   --------- ---------

Total wireless subscribers                            495.6     481.0
                                                   ========= =========

  Consumer long distance lines                        412.6     423.5
  Business long distance lines                        151.1     138.1
                                                   --------- ---------

Total long distance lines                             563.7     561.6
                                                   ========= =========



Cincinnati Bell Telephone
Local Access Line Detail
(Unaudited)

 (in thousands)
                                         ----------------------------
                                                    2003
                                         ----------------------------
                                            1Q      2Q     3Q    4Q
                                         ----------------------------
 Local Access Lines
 ------------------

 In-Territory:
    Primary Residential                    624.6   620.3 617.7 613.9
    Secondary Residential                   64.3    62.2  60.0  58.1
    Business/Other                         313.2   310.2 308.0 304.6
                                         ----------------------------
 Total In-Territory                      1,002.1   992.7 985.7 976.6

 Out-of-Territory:
    Primary Residential                      2.3     2.7   3.1   3.4
    Secondary Residential                    0.1     0.1   0.2   0.2
    Business/Other                           4.7     5.0   5.2   5.6
                                         ----------------------------
 Total Out-of-Territory                      7.1     7.8   8.5   9.2

                                         ----------------------------
 Total Access Lines                      1,009.2 1,000.5 994.2 985.8
                                         ============================


Cincinnati Bell Telephone
Local Access Line Detail
(Unaudited)


 (in thousands)
                     ------------------------ ------------------------
                              2004                     2005
                     ------------------------ ------------------------
                       1Q    2Q    3Q    4Q     1Q    2Q    3Q    4Q
                     ------------------------ ------------------------
 Local Access Lines
 -------------------

 In-Territory:
    Primary
     Residential     611.8 606.3 601.5 592.7  584.2 573.0 563.9 555.7
    Secondary
     Residential      56.0  54.0  52.2  50.5   48.9  47.1  45.4  43.9
    Business/Other   301.5 299.6 298.4 296.6  296.1 294.3 292.9 293.3
                     ------------------------ ------------------------
 Total In-Territory  969.3 959.9 952.1 939.8  929.2 914.4 902.2 892.9

 Out-of-Territory:
    Primary
     Residential       4.6  10.9  15.8  18.4   17.7  18.4  20.5  21.5
    Secondary
     Residential       0.2   0.6   0.7   0.8    0.8   0.9   1.0   1.0
    Business/Other     6.8   8.0   9.9  11.1   12.2  12.8  13.9  15.2
                     ------------------------ ------------------------
 Total Out-of-
  Territory           11.6  19.5  26.4  30.3   30.7  32.1  35.4  37.7

                     ------------------------ ------------------------
 Total Access Lines  980.9 979.4 978.5 970.1  959.9 946.5 937.6 930.6
                     ======================== ========================



Cincinnati Bell Inc.
Net Debt Calculation (Non-GAAP)
(Unaudited)

 (dollars in millions)

                                                            Change
                                    As of December 31,  --------------
                                      2005      2004       $      %
                                    --------- --------- --------------

 Credit facilities, revolver              $-    $438.8  $(438.8)  n/m
 Credit facility, tranche B term
  loan                                 399.0         -    399.0   n/m
 Cincinnati Bell Telephone notes       230.0     250.0    (20.0)  (8%)
 7 1/4% Senior unsecured notes due
  2013                                 500.0     500.0        -     0%
 16% Senior subordinated discount
  notes due 2009                           -     375.2   (375.2)  n/m
 7 1/4% Senior notes due 2023           50.0      50.0        -     0%
 8 3/8% Senior subordinated notes
  due 2014                             633.4     543.9     89.5    16%
 7% Senior notes due 2015              246.4         -    246.4   n/m
 Capital leases                         22.2      15.6      6.6    42%
 Other short-term debt                   2.4       1.6      0.8    50%
 Other long-term debt                    0.3         -      0.3   n/m
 Net unamortized premium (discounts)     1.0     (33.9)    34.9 (103%)
                                    --------- --------- --------------

    Total debt                       2,084.7   2,141.2    (56.5)  (3%)

 Add (Less): Interest rate swap
  liability (asset)                     10.2      (3.9)    14.1   n/m
 Less: Cash and cash equivalents       (25.7)    (24.9)    (0.8)  (3%)
                                    --------- --------- --------------

    Net debt (as defined by the
     company)                       $2,069.2  $2,112.4   $(43.2)  (2%)
                                    ========= ========= ==============



Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)

(dollars in millions)

                               Three Months Ended Twelve Months Ended
                                  December 31,       December 31,
                                  2005     2004     2005      2004
                                -------- -------- -------- ---------

Cash provided by operating
 activities                      $  96.9  $  84.4  $ 322.3  $  300.7
                                -------- -------- -------- ---------

  Capital expenditures             (34.3)   (33.9)  (143.0)   (133.9)
  Proceeds from sale of
   out-of-territory operating
   assets                              -      1.4        -       3.3
  Other                             (0.9)     3.1      0.3       6.3
                                -------- -------- -------- ---------

Cash used in investing
 activities                        (35.2)   (29.4)  (142.7)   (124.3)
                                -------- -------- -------- ---------

  Issuance of long-term debt           -        -    752.1         -
  Decrease in new credit
   facility, net                   (38.0)       -        -         -
  Repayment of previous credit
   facility and other debt         (20.8)   (50.9)  (903.3)   (171.8)
  Debt issuance costs and
   consent fees                        -        -    (21.9)        -
  Issuance of common shares
   - exercise of stock options       0.1      0.5      2.5       2.4
  Preferred stock dividends paid    (2.6)    (2.6)   (10.4)    (10.4)
  Other                              1.6        -      2.2       2.3
                                -------- -------- -------- ---------

Cash used in financing
 activities                        (59.7)   (53.0)  (178.8)   (177.5)
                                -------- -------- -------- ---------

Net increase (decrease) in cash
 and cash equivalents                2.0      2.0      0.8      (1.1)
Cash and cash equivalents
 at beginning of period             23.7     22.9     24.9      26.0
                                -------- -------- -------- ---------

Cash and cash equivalents
 at end of period                $  25.7  $  24.9  $  25.7  $   24.9
                                ======== ======== ======== =========


Reconciliation of GAAP Cash Flow
 to Free Cash Flow as defined by
 the company
Net increase (decrease) in cash
 and cash equivalents            $   2.0  $   2.0  $   0.8  $   (1.1)
Less adjustments:
  Issuance of long-term debt
   (financing activities)              -        -   (752.1)        -
  Repayment of debt (financing
   activities), net                 58.8     50.9    903.3     171.8
  Proceeds from sale of assets
   (investing activities)              -     (1.4)       -      (3.3)
                                -------- -------- -------- ---------

     Free cash flow (as defined
      by the company)            $  60.8  $  51.5  $ 152.0  $  167.4
                                ======== ======== ======== =========


Income Tax Refunds / (Payments)  $  (1.0) $  (0.4) $  (2.1) $   (2.3)



Cincinnati Bell Inc.
Reconciliation of Adjusted EBITDA (Non-GAAP) to
 Operating Income (GAAP)
(Unaudited)

(dollars in millions)

                                        Three Months    Twelve Months
                                           Ended           Ended
                                        December 31,    December 31,
                                         2005    2004    2005    2004
                                       ------- ------- ------- -------

Operating Income (GAAP)                 $55.6   $63.4  $258.8  $299.3

Add:
   Depreciation and amortization         41.5    45.0   174.7   187.7
   Restructuring                          1.1    11.4     1.1    11.6
   Asset impairments and other charges   18.6     1.7    41.7     3.2
   Gain on sale of broadband assets         -    (3.7)      -    (3.7)
                                       ------- ------- ------- -------

                                         61.2    54.4   217.5   198.8
                                       ------- ------- ------- -------

Adjusted EBITDA (Non-GAAP)             $116.8  $117.8  $476.3  $498.1
                                       ======= ======= ======= =======



Cincinnati Bell Inc.
Normalized Statement of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)

(dollars in millions, except per share amounts)

                                     Special Items
                           ----------------------------------
                                                                Three
                                                               Months
                   Three                                        Ended
                  Months                                      Dec. 31,
                   Ended                             Asset      2005
                  Dec. 31,  Income                Impairments  Before
                   2005       Tax                  & Other     Special
                   (GAAP)   Expense  Restructuring  Charges    Items
                              (a)         (b)         (c)   (Non-GAAP)
                  ----------------------------------------------------
Revenue            $305.3       $-            $-          $-   $305.3

Costs and
 expenses
 Cost of services
  and products      138.8        -             -           -    138.8
 Selling, general
  and
  administrative     49.7        -             -           -     49.7
 Depreciation and
  amortization       41.5        -             -           -     41.5
 Restructuring
  charges             1.1        -          (1.1)          -        -
 Asset
  impairments and
  other charges      18.6        -             -       (18.6)       -
                 --------- -------- ------------- ----------- --------

      Operating
       income        55.6        -           1.1        18.6     75.3

Minority interest
 income              (5.2)       -             -         3.7     (1.5)
Interest expense     37.3        -             -           -     37.3
Other income, net    (2.7)       -             -           -     (2.7)
                 --------- -------- ------------- ----------- --------

Income before
 income taxes        26.2        -           1.1        14.9     42.2
Income tax
 expense             13.6      2.5           0.4         6.0     22.5
                 --------- -------- ------------- ----------- --------

Net income           12.6     (2.5)          0.7         8.9     19.7
                 --------- -------- ------------- ----------- --------

Preferred stock
 dividends            2.6        -             -           -      2.6
                 --------- -------- ------------- ----------- --------

Net income
 applicable to
 common
 shareowners        $10.0     (2.5)          0.7         8.9    $17.1
                 ========= ======== ============= =========== ========


Weighted average
 diluted common
 shares             250.8    250.8         250.8       250.8    250.8
                 ========= ======== ============= =========== ========

Diluted earnings
 per common share   $0.04   $(0.01)        $0.00       $0.04    $0.07
                 ========= ======== ============= =========== ========


Normalized results have been adjusted for the following (pretax
adjustments are tax effected at 40%):

(a) Benefit associated with adjustment to state deferred tax assets
    based on interpretive guidance issued by state tax authorities
    clarifying tax law changes enacted in 1Q 2005;

(b) Restructuring associated with directory assistance outsourcing;
    and

(c) Asset impairments and other charges, substantially all of which
    related to a write-down of the company's TDMA network assets.




Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)

(dollars in millions, except per share amounts)

                                 Special Items
                     --------------------------------------
                                                             Twelve
                                                             Months
            Twelve                                           Ended
            Months                                  Asset   Dec. 31,
            Ended                                  Impair-    2005
           Dec. 31,  Income     Debt                ments    Before
             2005      Tax   Extinguish- Restruct- & Other   Special
            (GAAP)   Expense    ment       uring   Charges   Items
                       (b)       (c)        (d)      (e)   (Non-GAAP)
           ---------------------------------------------------------
Revenue    $1,209.6      $-          $-        $-       $-  $1,209.6

Costs and
 expenses
 Cost of
  services and
  products    512.3       -           -         -        -     512.3
 Selling,
  general and
  adminis-
  trative     221.0       -           -         -        -     221.0
 Depreciation
  and amortiz-
  ation       174.7       -           -         -        -     174.7
 Restructuring
  charges       1.1       -           -      (1.1)       -         -
 Asset
  impairments
  and other
  charges      41.7       -           -         -    (41.7)        -
           --------  ------  ----------  --------  -------  --------

  Operating
   income     258.8       -           -       1.1     41.7     301.6

Minority
 interest
 income       (11.0)      -           -         -      8.3      (2.7)
Interest
 expense      184.4       -           -         -        -     184.4
Loss on
 extinguish-
ment of debt   99.8       -       (99.8)        -        -         -
Other income,
 net           (4.2)      -           -         -        -      (4.2)
           --------  ------  ----------  --------  -------  --------

Income before
 income taxes (10.2)      -        99.8       1.1     33.4     124.1
Income tax
 expense       54.3   (44.5)       39.9       0.4     13.4      63.5
           --------  ------  ----------  --------  -------  --------

Net income
 (loss)       (64.5)   44.5        59.9       0.7     20.0      60.6

Preferred
 stock
 dividends     10.4       -           -         -        -      10.4
           --------  ------  ----------  --------  -------  --------

Net income
 (loss)
 applicable to
 common
 shareowners $(74.9)   44.5        59.9       0.7     20.0     $50.2
           ========  ======  ==========  ========  =======  ========


Weighted
 average
 diluted
 common
 shares       245.9   251.1(a)    251.1(a)  251.1(a) 251.1(a) 251.1(a)
           ========  ======  ==========  ========  =======  ========

Diluted
 earnings
 (loss)
 per common
 share       $(0.30)  $0.18       $0.24     $0.00    $0.08     $0.20
           ========  ======  ==========  ========  =======  ========

(a) Shares have been adjusted for dilutive common stock equivalents
    that result after excluding the special items from earnings.

Normalized results have been adjusted for the following (pretax
adjustments are tax effected at 40%):

(b) Write-down of certain state deferred tax assets due to change in
    state tax rates and state tax laws;

(c) Loss on extinguishment of the company's prior credit facility and
    16% Notes;

(d) Restructuring associated with directory assistance outsourcing;
    and

(e) Asset impairments and other charges, substantially all of which
    related to the write-down of the company's TDMA network assets.

    CONTACT: Cincinnati Bell Inc.
             Investor / Media contact
             Tony Schulte, 513-397-9540
             tony.schulte@cinbell.com

    SOURCE: Cincinnati Bell Inc.