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Cincinnati Bell Inc. Reports Strong Performance for First Quarter 2008

04/30/08

Wireless and Technology Solutions Drive 10th Straight Quarter of Year-over-Year Revenue Growth

CINCINNATI--(BUSINESS WIRE)--April 30, 2008--Cincinnati Bell Inc. (NYSE:CBB) today announced results for the first quarter of 2008 including revenue of $349 million, an increase of $33 million or 11 percent from the prior year quarter. Operating income was $57 million and included a pre-tax restructuring charge of $24 million related to the company's previously announced restructuring plan and labor agreement. Net income for the quarter was $13 million and earnings per share on a diluted basis(1) was 4 cents. Before special items, net income(2) was $27 million or 10 cents per diluted share, up $4 million or 19 percent from last year. Adjusted earnings before interest, taxes, depreciation and amortization(3) (Adjusted EBITDA) equaled $120 million, up $3 million, or 2.5 percent from a year ago.

"Cincinnati Bell achieved another outstanding quarter with continued momentum in both revenue and Adjusted EBITDA," said Jack Cassidy, president and chief executive officer of Cincinnati Bell Inc. "Contributing to the quarter's success are Cincinnati Bell Wireless and ZoomTown high-speed Internet service, businesses we launched 10 years ago this year and that today provide superior value and network reliability to more than 800,000 subscribers in Greater Cincinnati and Dayton."

    Quarterly Highlights

    --  Quarterly revenue increased 11 percent or $33 million from a
        year ago reflecting growth of $15 million in service revenue
        and $18 million in equipment revenue.

    --  Revenue from Technology Solutions totaled $75 million, an
        increase of 54 percent from the first quarter of 2007, which
        contributed to operating income growth of 28 percent and
        Adjusted EBITDA growth of 76 percent.

    --  Wireless service revenue in the quarter was $72 million, up 16
        percent from the prior year quarter. This led to
        year-over-year increases of 64 percent in operating income and
        30 percent in Adjusted EBITDA. The Adjusted EBITDA margin
        expanded 3 percentage points from the first quarter of 2007 to
        28 percent.

    --  In the quarter, Cincinnati Bell purchased 4.1 million shares
        of common stock for a total of $16.7 million. At the end of
        the first quarter, the company had $133 million remaining in
        its current repurchase authorization. Cincinnati Bell expects
        to continue repurchases and the timing and nature are subject
        to market conditions and applicable securities laws.

    --  On February 27th, Cincinnati Bell employees who are
        represented by the Communication Workers of America ratified
        the labor agreement reached between the company and union
        officials in January. The agreement included a retirement
        offer to eligible employees. As a result, Cincinnati Bell
        incurred a pre-tax restructuring charge of $24 million in the
        quarter.

    --  At the April 25th annual meeting, shareholders approved an
        amendment to declassify the Board and require an annual
        election of directors and an amendment to implement a majority
        vote standard for the election of directors. The company
        initiated both amendments to enhance its accountability to
        shareholders.

    Financial and Operations Overview

"We are pleased with the financial performance in each of our business segments," said Brian Ross, chief financial officer of Cincinnati Bell Inc. "Investments in our Wireless and Technology Solutions segments are producing returns that enable execution of our share repurchase program and the purchase of our higher coupon debt."

Free cash flow(4) was $24 million in the quarter and capital expenditures were $61 million. Net debt(5) totaled $1.99 billion, down $3 million from the end of the first quarter of 2007. The company retired $40 million of their 8 3/8% bonds during the quarter.

Wireline Segment

Quarterly Wireline revenue equaled $203 million, down $1 million or 1 percent from the first quarter of 2007. Increased revenue from data services, long distance and expansion markets partially offset lower voice revenue in Cincinnati Bell's traditional service area.

Operating income was $47 million and included a restructuring charge of $23 million. Adjusted EBITDA totaled $96 million, down $4 million or 4 percent from the prior year quarter.

Year-over-year access line loss in the quarter was 6.3 percent. Business lines grew 1.5 percent and expansion market access lines reached 64,000, up 11,000 from the prior year. This growth partially offset the impact of consumer access line loss in Cincinnati Bell's traditional operating area. DSL net adds were 6,000 in the quarter, bringing total subscribers to 228,000, a 10 percent increase from a year ago. DSL consumer in-territory penetration increased to 44 percent.

Wireless Segment

Quarterly revenue from the Wireless segment increased 15 percent to $79 million. This helped produce operating income of $12 million, up 64 percent from a year ago, and Adjusted EBITDA of $22 million, an increase of 30 percent from the first quarter of 2007.

Cincinnati Bell had 579,000 wireless customers at the end of the quarter, which included year-over-year growth of 8 percent in its postpaid wireless customer base. Postpaid quarterly average revenue per user (ARPU) was $47.47, up 6 percent from the first quarter of 2007. Prepaid ARPU was $26.17, an increase of 17 percent year-over-year.

Technology Solutions

Technology Solutions quarterly revenue was $75 million, up $26 million or 54 percent from a year ago. Telecommunications and IT Equipment revenue increased $17 million or 53 percent from the prior year while Data Center and Managed Services revenue grew by $7 million or 51 percent compared to the first quarter of 2007. Operating income totaled $3 million, up 28 percent from a year ago and Adjusted EBITDA equaled $7 million, up 76 percent.

Capital expenditures of $22 million in the quarter were used primarily for construction of future data center space. Billable data center capacity at the end of the first quarter increased by 38,000 square feet to 182,000 square feet. An additional 21,000 square feet began billing in the quarter, which resulted in an 85 percent utilization rate compared to 93 percent at the end of 2007.

2008 Guidance

Cincinnati Bell confirms its financial guidance for 2008:

                 Category                           2008 Guidance
----------------------------------------------------------------------
Revenue                                          Approx. $1.4 billion
----------------------------------------------------------------------
Adjusted EBITDA                                  Approx. $485 million
----------------------------------------------------------------------
Capital Expenditures                            Approx. 16% of revenue
----------------------------------------------------------------------
Free Cash Flow                                   Approx. $150 million
----------------------------------------------------------------------

Conference Call/Webcast

Cincinnati Bell will host a conference call today at 10:00 a.m. (ET) to discuss its results for the first quarter of 2008. 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 888.713.3588. Callers located outside of the U.S. and Canada may dial 913.312.0642. A taped replay of the conference call will be available one hour after the conclusion of the call until 5:00 p.m. on Wednesday, May 14, 2008. For U.S. callers, the replay will be available at 888.203.1112. For callers outside of the U.S. and Canada, the replay will be available at 719.457.0820. The replay reference number is 4764844. An archived version of the webcast will also be available in the Investor Relations section of 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; 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 April 30, 2008. 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 net income excluding special items, free cash flow, net debt and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA). 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 income excluding special items, Adjusted EBITDA, net debt and free cash flow 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) Earnings per share on a diluted basis is calculated as follows: Net income less preferred stock dividends divided by diluted common shares outstanding.

(2) Net income excluding special items provides a useful measure of operating performance. Net income excluding special items should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with net income excluding special items as defined by other companies.

(3) 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.

(4) 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, adjusted for the issuance and repayment of debt, the repurchase of common stock, and the proceeds from the sale or the use of funds from the purchase of business operations. 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 feels that there is no comparable GAAP measure for free cash flow, the attached financial information reconciles free cash flow to the net increase (decrease) in cash and cash equivalents.

(5) 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 and unamortized premium and/or discount, offset by cash and cash equivalents.

About Cincinnati Bell Inc.

With headquarters in Cincinnati, Ohio, Cincinnati Bell (NYSE:CBB) provides integrated communications solutions--including local, long distance, data, Internet, and wireless services--that help keep residential and business customers in Greater Cincinnati and Dayton connected with each other and with the world.

In addition, businesses ranging in size from start-up companies to large enterprises turn to Cincinnati Bell for efficient, scalable office communications systems as well as complex information technology solutions including data center and managed services.

Cincinnati Bell conducts its operations through three business segments: Wireline, Wireless, and Technology Solutions. For more information, visit www.cincinnatibell.com.


Cincinnati Bell Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in millions, except per share amounts)


                                          Three Months
                                         Ended March 31,    Change
                                          2008    2007      $      %
                                         ------- ------- ------- -----

 Revenue                                 $348.5  $315.3  $ 33.2   11%

 Costs and expenses
    Cost of services and products         158.8   133.1    25.7   19%
    Selling, general and administrative    70.1    65.5     4.6    7%
    Depreciation and amortization          37.3    36.3     1.0    3%
    Restructuring charges                  24.0     2.5    21.5   n/m
    Asset impairment                        1.2       -     1.2   n/m
                                         ------- ------- ------- -----

        Operating income                   57.1    77.9   (20.8) (27%)

 Interest expense                          36.3    40.1    (3.8)  (9%)
 Other income, net                         (1.2)   (2.0)    0.8  (40%)
                                         ------- ------- ------- -----

 Income before income taxes                22.0    39.8   (17.8) (45%)
 Income tax expense                         9.1    17.2    (8.1) (47%)
                                         ------- ------- ------- -----

 Net income                                12.9    22.6    (9.7) (43%)

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

 Net income applicable to common
  shareowners                            $ 10.3  $ 20.0  $ (9.7) (49%)
                                         ======= ======= ======= =====


 Basic and diluted earnings per common
  share                                  $ 0.04  $ 0.08
                                         ======= =======

 Weighted average common shares
  outstanding (millions)
    - Basic                               246.7   247.1
    - Diluted                             252.8   255.0

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)


                                          Three Months
                                         Ended March 31,    Change
                                           2008    2007     $      %
                                         -------- ------ ------- -----
 Wireline
 Revenue
    Voice - local service                $  101.0 $112.7 $(11.7) (10%)
    Data                                     67.6   62.5    5.1    8%
    Long distance and VoIP                   24.3   18.7    5.6   30%
    Other                                     9.7    9.8   (0.1)  (1%)
                                         -------- ------ ------- -----

    Total revenue                           202.6  203.7   (1.1)  (1%)

 Operating costs and expenses
    Cost of services and products            67.5   65.5    2.0    3%
    Selling, general and administrative      38.9   37.9    1.0    3%
    Depreciation and amortization            25.1   25.8   (0.7)  (3%)
    Restructuring charges                    23.2    2.4   20.8   n/m
    Asset impairment                          1.2      -    1.2   n/m
                                         -------- ------ ------- -----

    Total operating costs and expenses      155.9  131.6   24.3   18%
                                         -------- ------ ------- -----

 Operating income                        $   46.7 $ 72.1 $(25.4) (35%)
                                         ======== ====== ======= =====

 Wireless
 Revenue
    Service                              $   72.0 $ 62.2 $  9.8   16%
    Equipment                                 6.5    6.3    0.2    3%
                                         -------- ------ ------- -----

    Total revenue                            78.5   68.5   10.0   15%

 Operating costs and expenses
    Cost of services and products            40.0   34.7    5.3   15%
    Selling, general and administrative      16.8   17.1   (0.3)  (2%)
    Depreciation and amortization             9.0    9.2   (0.2)  (2%)
    Restructuring charges                     0.4      -    0.4   n/m
                                         -------- ------ ------- -----

    Total operating costs and expenses       66.2   61.0    5.2    9%
                                         -------- ------ ------- -----

 Operating income                        $   12.3 $  7.5 $  4.8   64%
                                         ======== ====== ======= =====

 Technology Solutions
 Revenue
    Telecom and IT equipment
     distribution                        $   49.7 $ 32.4 $ 17.3   53%
    Data center and managed services         21.7   14.4    7.3   51%
    Professional services                     3.3    1.7    1.6   94%
                                         -------- ------ ------- -----

    Total revenue                            74.7   48.5   26.2   54%

 Operating costs and expenses
    Cost of services and products            57.9   37.9   20.0   53%
    Selling, general and administrative      10.1    6.8    3.3   49%
    Depreciation and amortization             3.2    1.3    1.9   n/m
    Restructuring charges                     0.3      -    0.3   n/m
                                         -------- ------ ------- -----

    Total operating costs and expenses       71.5   46.0   25.5   55%
                                         -------- ------ ------- -----

 Operating income                        $    3.2 $  2.5 $  0.7   28%
                                         ======== ====== ======= =====

Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)


                                          Three Months
                                         Ended March 31,    Change
                                          2008    2007      $      %
                                         ------- ------- ------- -----
 Revenue
    Wireline                             $202.6  $203.7  $ (1.1)  (1%)
    Wireless                               78.5    68.5    10.0   15%
    Technology Solutions                   74.7    48.5    26.2   54%
    Eliminations                           (7.3)   (5.4)   (1.9)  35%
                                         ------- ------- ------- -----

    Total revenue                        $348.5  $315.3  $ 33.2   11%
                                         ======= ======= ======= =====

 Cost of Services and Products
    Wireline                             $ 67.5  $ 65.5  $  2.0    3%
    Wireless                               40.0    34.7     5.3   15%
    Technology Solutions                   57.9    37.9    20.0   53%
    Eliminations                           (6.6)   (5.0)   (1.6)  32%
                                         ------- ------- ------- -----

    Total cost of services and products  $158.8  $133.1  $ 25.7   19%
                                         ======= ======= ======= =====

 Selling, General and Administrative
    Wireline                             $ 38.9  $ 37.9  $  1.0    3%
    Wireless                               16.8    17.1    (0.3)  (2%)
    Technology Solutions                   10.1     6.8     3.3   49%
    Corporate and eliminations              4.3     3.7     0.6   16%
                                         ------- ------- ------- -----

    Total selling, general and
     administrative                      $ 70.1  $ 65.5  $  4.6    7%
                                         ======= ======= ======= =====

 Depreciation and Amortization
    Wireline                             $ 25.1  $ 25.8  $ (0.7)  (3%)
    Wireless                                9.0     9.2    (0.2)  (2%)
    Technology Solutions                    3.2     1.3     1.9   n/m
    Corporate                                 -       -       -   n/m
                                         ------- ------- ------- -----

    Total depreciation and amortization  $ 37.3  $ 36.3  $  1.0    3%
                                         ======= ======= ======= =====

 Restructuring and Asset Impairment
  Charges
    Wireline                             $ 24.4  $  2.4  $ 22.0   n/m
    Wireless                                0.4       -     0.4   n/m
    Technology Solutions                    0.3       -     0.3   n/m
    Corporate                               0.1     0.1       -   n/m
                                         ------- ------- ------- -----

    Total restructuring and asset
     impairment charges                  $ 25.2  $  2.5  $ 22.7   n/m
                                         ======= ======= ======= =====

 Operating Income
    Wireline                             $ 46.7  $ 72.1  $(25.4) (35%)
    Wireless                               12.3     7.5     4.8   64%
    Technology Solutions                    3.2     2.5     0.7   28%
    Corporate and eliminations             (5.1)   (4.2)   (0.9)  21%
                                         ------- ------- ------- -----

    Total operating income               $ 57.1  $ 77.9  $(20.8) (27%)
                                         ======= ======= ======= =====

Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)


                                                March 31, December 31,
                                                  2008        2007
                                                --------- ------------
 (in thousands)

 Local access lines                                 820.6        834.3
 DSL subscribers                                    227.9        221.5
 Custom Connections (Super Bundle) subscribers      189.4        187.2


 Postpaid wireless subscribers                      404.7        400.4
 Prepaid wireless subscribers                       174.7        170.6
                                                --------- ------------

 Total wireless subscribers                         579.4        571.0
                                                ========= ============


 Consumer long distance lines                       364.8        374.2
 Business long distance lines                       176.4        174.1
                                                --------- ------------

 Total long distance lines                          541.2        548.3
                                                ========= ============


 Data Center and Managed Services
    Raised Floor (in square feet)                 181,500      144,000
    Utilization rate                                  85%          93%

Cincinnati Bell Telephone
Local Access Line Detail
(Unaudited)
(In thousands)


                 ----------------------- ----------------------- -----
                          2006                    2007           2008
                 ----------------------- ----------------------- -----
                  1Q    2Q    3Q    4Q    1Q    2Q    3Q    4Q    1Q
                 ----- ----- ----- ----- ----- ----- ----- ----- -----
 Local Access
  Lines
 ---------------

  In-Territory:
    Primary
     Residential 547.4 536.7 522.5 510.5 499.1 484.8 468.4 454.2 441.2
    Secondary
     Residential  42.4  40.9  39.2  37.6  36.2  34.9  33.4  32.0  30.7
    Business /
     Other       290.9 291.3 291.4 288.6 287.6 287.7 286.9 285.8 284.3
                 ----------------------- ----------------------- -----
  Total In-
   Territory     880.7 868.9 853.1 836.7 822.9 807.4 788.7 772.0 756.2

  Out-of-
   Territory:
    Primary
     Residential  22.8  24.8  26.8  28.1  29.4  30.7  32.0  32.7  32.8
    Secondary
     Residential   1.1   1.1   1.2   1.2   1.2   1.3   1.3   1.3   1.4
    Business /
     Other        16.3  17.7  19.4  21.0  22.4  24.2  26.7  28.3  30.2
                 ----------------------- ----------------------- -----
  Total Out-of-
   Territory      40.2  43.6  47.4  50.3  53.0  56.2  60.0  62.3  64.4

                 ----------------------- ----------------------- -----
  Total Access
   Lines         920.9 912.5 900.5 887.0 875.9 863.6 848.7 834.3 820.6
                 ======================= ======================= =====

Cincinnati Bell Inc.
Net Debt Calculation
(Unaudited)
(Dollars in millions)


                                  March 31, December 31,    Change
                                    2008        2007        $      %
                                  --------- ------------ ------- -----

Credit facility, revolver         $  100.0  $      55.0  $ 45.0   82%
Credit facility, tranche B term
 loan                                210.0        211.0    (1.0)   0%
7 1/4% Senior Notes due 2013         470.5        470.5       -    0%
8 3/8% Senior Subordinated Notes
 due 2014                            605.4        637.4   (32.0)  (5%)
7% Senior Notes due 2015             256.0        250.6     5.4    2%
7 1/4% Senior Notes due 2023          50.0         50.0       -    0%
Accounts receivable
 securitization facility              75.0         75.0       -    0%
Various Cincinnati Bell Telephone
 notes                               230.0        230.0       -    0%
Capital leases and other debt         29.6         29.6       -    0%
Net unamortized premium                0.6          0.6       -    0%
                                  --------- ------------ ------- -----

   Total debt                      2,027.1      2,009.7    17.4    1%

Less: Interest rate swap asset       (16.1)        (2.9)  (13.2)  n/m
Less: Cash and cash equivalents      (19.3)       (26.1)    6.8  (26%)
                                  --------- ------------ ------- -----

   Net debt (as defined by the
    company)                      $1,991.7  $   1,980.7  $ 11.0    1%
                                  ========= ============ ======= =====

Credit facility availability      $  122.9  $     167.9  $(45.0) (27%)
                                  ========= ============ ======= =====

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


                                                        Three Months
                                                       Ended March 31,
                                                        2008    2007
                                                       ------- -------

 Cash provided by operating activities                 $ 88.0  $ 68.3
                                                       ------- -------

    Capital expenditures                                (60.7)  (42.3)
    Acquisition of businesses                           (18.7)   (4.6)
    Other, net                                           (0.7)   (0.5)
                                                       ------- -------

 Cash used in investing activities                      (80.1)  (47.4)
                                                       ------- -------

    Increase in corporate credit facility, net           45.0       -
    Repayment of debt                                   (40.0)  (51.3)
    Preferred stock dividends                            (2.6)   (2.6)
    Common stock repurchase                             (16.7)      -
    Other, net                                           (0.4)   (0.5)
                                                       ------- -------

 Cash used in financing activities                      (14.7)  (54.4)
                                                       ------- -------

 Net decrease in cash and cash equivalents               (6.8)  (33.5)
 Cash and cash equivalents at beginning of period        26.1    79.4
                                                       ------- -------

 Cash and cash equivalents at end of period            $ 19.3  $ 45.9
                                                       ======= =======


 Reconciliation of GAAP Cash Flow to Free Cash Flow
  (as defined by the company)
 Net decrease in cash and cash equivalents             $ (6.8) $(33.5)
 Less adjustments:
    Increase in corporate credit facility               (45.0)      -
    Repayment of debt                                    40.0    51.3
    Common stock repurchase                              16.7       -
    Acquisition of businesses                            18.7     4.6
                                                       ------- -------

          Free cash flow (as defined by the company)   $ 23.6  $ 22.4
                                                       ======= =======

 Income tax payments                                   $  0.1  $  0.1

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


                        ----------------------------------------------
                              Three Months Ended March 31, 2008
                        ----------------------------------------------
                                          Technology            Total
                        Wireline Wireless Solutions  Corporate Company
                        ----------------------------------------------

 Operating Income
  (GAAP)                $ 46.7   $  12.3  $     3.2  $   (5.1) $ 57.1
 Add:
     Depreciation and
      amortization        25.1       9.0        3.2         -    37.3
     Restructuring and
      asset impairment
      charges             24.4       0.4        0.3       0.1    25.2
                        ----------------------------------------------

 EBITDA (Non-GAAP)      $ 96.2   $  21.7  $     6.7  $   (5.0) $119.6
                        ==============================================



                        ----------------------------------------------
                              Three Months Ended March 31, 2007
                        ----------------------------------------------
                                          Technology            Total
                        Wireline Wireless Solutions  Corporate Company
                        ----------------------------------------------

 Operating Income
  (GAAP)                $ 72.1   $   7.5  $     2.5  $   (4.2) $ 77.9
 Add:
     Depreciation and
      amortization        25.8       9.2        1.3         -    36.3
     Restructuring
      charges              2.4         -          -       0.1     2.5
                        ----------------------------------------------

 EBITDA (Non-GAAP)      $100.3   $  16.7  $     3.8  $   (4.1) $116.7
                        ==============================================

 Year-over-year dollar
  change in EBITDA       ($4.1)  $   5.0  $     2.9     ($0.9) $  2.9

 Year-over-year
  percentage change in
  EBITDA                 (4%)      30%       76%        22%      2%

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)


                                               Special Items
                                      --------------------------------

                            Three
                         Months Ended
                          March 31,
                         2008 (GAAP)  Restructuring Asset Impairment
                         ---------------------------------------------
                                            A              B
  Revenue                $     348.5  $          -  $             -

  Costs and expenses
     Cost of services
      and products             158.8             -                -
     Selling, general
      and administrative        70.1             -                -
     Depreciation and
      amortization              37.3             -                -
     Restructuring
      charges                   24.0         (24.0)               -
     Asset impairment            1.2             -             (1.2)
                         ------------ ------------- ----------------
         Operating
          income                57.1          24.0              1.2

  Interest expense              36.3             -                -
  Other income, net             (1.2)            -                -
                         ------------ ------------- ----------------

  Income before income
   taxes                        22.0          24.0              1.2
  Income tax expense             9.1           9.6              0.5
                         ------------ ------------- ----------------

  Net income                    12.9          14.4              0.7

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

  Net income applicable
   to common shareowners $      10.3  $       14.4  $           0.7
                         ============ ============= ================


  Weighted average
   diluted common shares       252.8         252.8            252.8
                         ============ ============= ================

  Diluted earnings per
   common share          $      0.04  $       0.06  $             -
                         ============ ============= ================


                                Special Items
                             --------------------
                                                         Three
                                                      Months Ended
                                                     March 31, 2008
                                    Gain on       Before Special Items
                              Debt Extinguishment      (Non-GAAP)
                             -----------------------------------------
                                       C
  Revenue                     $                -  $             348.5

  Costs and expenses
     Cost of services and
      products                                 -                158.8
     Selling, general and
      administrative                           -                 70.1
     Depreciation and
      amortization                             -                 37.3
     Restructuring charges                     -                    -
     Asset impairment                          -                    -
                             -------------------- --------------------
        Operating income                       -                 82.3

  Interest expense                             -                 36.3
  Other income, net                          1.1                 (0.1)
                             -------------------- --------------------

  Income before income taxes                (1.1)                46.1
  Income tax expense                        (0.4)                18.8
                             -------------------- --------------------

  Net income                                (0.7)                27.3

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

  Net income applicable to
   common shareowners         $             (0.7) $              24.7
                             ==================== ====================


  Weighted average diluted
   common shares                           252.8                252.8
                             ==================== ====================

  Diluted earnings per
   common share               $                -  $              0.10
                             ==================== ====================



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

A Represents charge for voluntary early retirement program for union
   employees and curtailment charge for union pension and
   postretirement plans.

B Represents asset impairment charge for discontinued software.

C Gain on extinguishment of 8 3/8% Senior Subordinated Notes.

Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)


                                                 Special Items
                                          ---------------------------

                                Three
                             Months Ended
                              March 31,   Restructuring Dividend From
                             2007 (GAAP)     Charge      Investment
                             -----------------------------------------
                                                A             B
  Revenue                    $     315.3  $          -  $          -

  Costs and expenses
     Cost of services and
      products                     133.1             -             -
     Selling, general and
      administrative                65.5             -             -
     Depreciation and
      amortization                  36.3             -             -
     Restructuring charges           2.5          (2.5)            -
                             ------------ ---------------------------
        Operating income            77.9           2.5             -

  Interest expense                  40.1             -             -
  Other income, net                 (2.0)            -           1.9
                             ------------ ---------------------------

  Income before income taxes        39.8           2.5          (1.9)
  Income tax expense                17.2           1.0          (0.8)
                             ------------ ---------------------------

  Net income                        22.6           1.5          (1.1)

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

  Net income applicable to
   common shareowners        $      20.0  $        1.5  $       (1.1)
                             ============ ============= =============


  Weighted average diluted
   common shares                   255.0         255.0         255.0
                             ============ ============= =============

  Diluted earnings per
   common share              $      0.08  $       0.01  $      (0.01)
                             ============ ============= =============



                                                         Three
                                                      Months Ended
                                                     March 31, 2007
                                                  Before Special Items
                                                       (Non-GAAP)
                                                  --------------------

  Revenue                                         $             315.3

  Costs and expenses
     Cost of services and products                              133.1
     Selling, general and administrative                         65.5
     Depreciation and amortization                               36.3
     Restructuring charges                                          -
                                                  --------------------
        Operating income                                         80.4

  Interest expense                                               40.1
  Other income, net                                              (0.1)
                                                  --------------------

  Income before income taxes                                     40.4
  Income tax expense                                             17.4
                                                  --------------------

  Net income                                                     23.0

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

  Net income applicable to common shareowners     $              20.4
                                                  ====================


  Weighted average diluted common shares                        255.0
                                                  ====================

  Diluted earnings per common share               $              0.08
                                                  ====================



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

A Represents employee separation expense primarily related to the
   outsourcing of certain accounting functions and the reduction in
   workforce of various other administrative functions.

B Represents one-time dividend received from cost investment.

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


                                                              2008
                                                           -----------
 Consolidated 2008 Operating Income (GAAP) Guidance        $       300

 Add:
     Depreciation and amortization                                 156
     Restructuring charges                                          28
     Asset impairment                                                1
                                                           -----------

 Consolidated 2008 Adjusted EBITDA Guidance                $       485
                                                           ===========

CONTACT: Cincinnati Bell Inc.
Investor / Media contact
Traci Bolte, 513-397-1195
traci.bolte@cinbell.com

SOURCE: Cincinnati Bell Inc.