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Cincinnati Bell Inc. Reports Year-Over-Year Growth in Second Quarter of 2007

08/02/07

Solid Second Quarter Performance Led by Wireless Service Revenue

Growth of 13 Percent and a 129 Percent Increase in Wireless Operating

                                Income

CINCINNATI--(BUSINESS WIRE)--Aug. 2, 2007--Cincinnati Bell Inc. (NYSE:CBB) today reported results for the second quarter of 2007 including revenue of $329 million, up 2 percent year-over-year, and operating income of $81 million. Net income was $24 million, or 8 cents per diluted share compared to $24 million or 9 cents per diluted share in the second quarter of 2006. Excluding special items, net income and earnings per share increased 7 percent and 6 percent, respectively. Adjusted earnings before interest, taxes, depreciation and amortization(2) (EBITDA) equaled $118 million, up $2 million, or 2 percent from a year ago.

"By focusing on consistent execution of our strategy, Cincinnati Bell achieved year-over-year and sequential revenue increases in our key growth areas of Wireless, DSL and Data Center and Managed Services. This led to the company's EBITDA growth in the quarter," said Jack Cassidy, president and chief executive officer of Cincinnati Bell Inc. "In addition, we once again maintained our competitive edge in the market with the launch of our converged wireless and Wireless Internet (WiFi) service known as CB Home Run."

    Second Quarter Highlights

    --  Revenue totaled $329 million in the second quarter, up 2
        percent from a year ago. Increased Wireless, DSL, and Data
        Center and Managed Services revenue more than offset a decline
        in Wireline voice revenue.

    --  Wireless service revenue reached $67 million, up $8 million or
        13 percent from the second quarter of 2006. Operating income
        of $10 million in the second quarter of 2007 more than doubled
        compared to the prior year. The Wireless EBITDA margin
        continued to expand and reached 27 percent, up 7 points from a
        year ago.

    --  In the Technology Solutions segment, operating income of $4
        million in the second quarter of 2007 increased 5 percent
        compared to the prior year. Adjusted EBITDA increased 15
        percent primarily due to the growth of Data Center and Managed
        Services revenue, which increased 36 percent compared to a
        year ago. At the end of the second quarter, the company began
        billing its newly constructed 20,000 square feet of data
        center capacity. Total billable capacity now equals 111,000
        square feet and is 96 percent utilized.

    --  Year-over-year DSL subscriber growth equaled 20 percent and
        churn remained below 2 percent. DSL penetration of
        in-territory consumer primary access lines reached 38 percent,
        up 9 percentage points.

    --  On June 18, Cincinnati Bell became the first carrier to
        commercially launch converged wireless/WiFi service in Greater
        Cincinnati and Dayton. Known as CB Home Run, the service
        provides enhanced in-building mobile phone reception by
        leveraging the capacity and quality of Cincinnati Bell's
        broadband network.

    --  Quarterly free cash flow(3) was $38 million, down $14 million
        from the prior year due primarily to $16 million of capital
        expenditures related to the construction of additional data
        center capacity. Capital expenditures in the quarter equaled
        $48 million, up $9 million from the second quarter of 2006.
        The company used its free cash flow to reduce debt to
        approximately $1.96 billion.

"Cincinnati Bell delivered another solid quarter," said Brian Ross, chief financial officer. "Revenue and EBITDA increased and we continued to generate strong cash flow to reduce debt. We also continued to invest prudently in data center growth as evidenced by completing and immediately billing new raised floor capacity in the quarter."

Wireline Segment

The Wireline segment produced quarterly revenue of $204 million, comparable to the second quarter of 2006. Increased data, long distance and expansion market voice revenue largely offset lower local voice revenue in the company's traditional operating area. Operating income totaled $72 million, down $6 million from the second quarter of 2006 primarily due to higher expenses related to growth in expansion markets. Adjusted EBITDA for the Wireline segment totaled $98 million, down $6 million from a year ago.

Year-over-year total access line loss in the second quarter was 5.4 percent. Expansion market access lines grew 29 percent, which helped to offset the loss of in-territory consumer access lines.

In the second quarter, Cincinnati Bell changed its segment reporting by creating a new Wireline segment and eliminating its Broadband segment, which no longer has operating activity. The Wireline segment includes results from local, long distance, security monitoring and public payphone services, which the company previously reported in the Local and the Other segments. The remaining liabilities associated with the former broadband operations are now included in Corporate activities.

Wireless Services

Quarterly revenue from the Wireless segment increased 11 percent to $74 million and operating income equaled $10 million, up $6 million from a year ago, primarily due to an $8 million increase in service revenue. Adjusted EBITDA was $20 million, up $6 million compared with the second quarter of 2006, while adjusted EBITDA margin expanded 7 points to 27 percent.

Postpaid net activations in the quarter were 7,000 compared with 12,000 in the second quarter of 2006, which was when Cincinnati Bell Wireless completed its TDMA network migration. Continued improvement in network quality and customer value resulted in reduced postpaid churn of 1.5 percent in the second quarter of 2007 compared to 1.6 percent last year. Quarterly postpaid average revenue per user (ARPU) totaled $47.78. Prepaid net activations improved by 9,000 and prepaid ARPU of $22.44 increased 8 percent year-over-year driven in part by a 19 percent increase in data ARPU.

Technology Solutions

The Technology Solutions segment produced revenue of $58 million, a decrease of 1 percent from a year ago. Data Center and Managed Services revenue increased $4 million, a 36 percent increase compared to the second quarter of 2006, and largely offset lower sales of hardware and related equipment. Operating income totaled $4 million, up 5 percent from a year ago, due to Data Center and Managed Services growth partially offset by increased depreciation to support the expanded data center operations. Adjusted EBITDA was $6 million, up 15 percent from the second quarter of 2006.

Billable data center capacity increased by 22 percent to 111,000 square feet compared to the end of the first quarter of 2007. Utilization of billable capacity increased to 96 percent at the end of the second quarter as Cincinnati Bell began billing for its newly commissioned 20,000 square feet of capacity. Approximately 70,000 square feet of new data center capacity remains under construction.

2007 Guidance

Cincinnati Bell confirms its 2007 guidance:

          Category                         2007 Guidance
----------------------------------------------------------------------
Revenue                              Approximately $1.3 billion
----------------------------------------------------------------------
Adjusted EBITDA(2)                   Approximately $465 million
----------------------------------------------------------------------
Capital Expenditures            Approximately 19 percent of revenue
----------------------------------------------------------------------
Free Cash Flow(3)                    Approximately $50 million
----------------------------------------------------------------------

Conference Call/Webcast

Cincinnati Bell will host a conference call today at 10:00 a.m. (ET) to discuss its results for the second quarter of 2007. 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 904.596.2360. A taped replay call will be available one hour after the conclusion of the teleconference until 5:00 p.m. (ET) on August 23, 2007. 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 217375. 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 August 2, 2007. 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, 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, 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)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.

(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.

(3) 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 and for 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.

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           Six Months
                           Ended June 30,   %    Ended June 30,   %
                            2007    2006  Change  2007    2006  Change
                           ------- ------ ------ ------- ------ ------

Revenue                     $329.1 $323.3   2%    $644.4 $621.6   4%

Costs and expenses
  Cost of services and
   products                  145.3  145.5   0%     278.4  273.6   2%
  Selling, general and
   administrative             65.8   61.7   7%     131.3  120.0   9%
  Depreciation and
   amortization               36.8   35.7   3%      73.2   70.1   4%
  Shareholder claim
   settlement                    -      -  n/m         -    6.3  n/m
  Restructuring charges        0.1    0.1   0%       2.6    0.2  n/m
  Gain on sale of
   broadband assets              -  (2.9)  n/m         -  (2.9)  n/m
                           ------- ------        ------- ------
    Operating income          81.1   83.2  (3%)    158.9  154.3   3%

Minority interest expense        -      -  n/m         -    0.4  n/m
Interest expense              39.0   40.3  (3%)     79.1   79.8  (1%)
Other income, net            (0.2)  (0.1)  100%    (2.2)  (0.2)  n/m
                           ------- ------        ------- ------
Income before income taxes    42.3   43.0  (2%)     82.0   74.3  10%
Income tax expense            18.1   18.7  (3%)     35.3   35.9  (2%)
                           ------- ------        ------- ------
Net income                    24.2   24.3   0%      46.7   38.4  22%

Preferred stock dividends      2.6    2.6   0%       5.2    5.2   0%
                           ------- ------        ------- ------
Net income applicable to
 common shareowners         $ 21.6 $ 21.7   0%    $ 41.5 $ 33.2  25%
                           ======= ======        ======= ======

Basic earnings per common
 share                      $ 0.09 $ 0.09         $ 0.17 $ 0.13
-------------------------- ======= ======        ======= ======
Diluted earnings per
 common share               $ 0.08 $ 0.09         $ 0.16 $ 0.13
-------------------------- ======= ======        ======= ======
Weighted average common
 shares outstanding
 (millions)
--------------------------
  - Basic                    247.3  246.8          247.2  246.7
  - Diluted                  257.6  252.4          256.4  251.9
Cincinnati Bell Inc.
Segment Information
(Unaudited)

 (dollars in millions)

                            Three Months           Six Months
                           Ended June 30,   %    Ended June 30,   %
                            2007    2006  Change  2007    2006  Change
                           ------- ------ ------ ------- ------ ------
 Wireline
 Revenue
  Voice - local service     $110.3 $116.7   (5%)  $223.0 $235.4   (5%)
  Data                        63.5   58.8    8%    126.0  115.4    9%
  Long distance               19.8   18.1    9%     38.5   36.0    7%
  Other                       10.5    9.8    7%     20.3   18.6    9%
                           ------- ------        ------- ------

  Total revenue              204.1  203.4    0%    407.8  405.4    1%

 Operating costs and
  expenses
  Cost of services and
   products                   67.7   63.6    6%    133.1  128.9    3%
  Selling, general and
   administrative             38.4   36.2    6%     76.3   70.8    8%
  Depreciation and
   amortization               26.0   26.0    0%     52.0   52.1    0%
  Restructuring charges          -      -  n/m       2.4      -  n/m
                           ------- ------        ------- ------

  Total operating costs and
   expenses                  132.1  125.8    5%    263.8  251.8    5%
                           ------- ------        ------- ------

 Operating income           $ 72.0 $ 77.6   (7%)  $144.0 $153.6   (6%)
                           ======= ======        ======= ======

 Wireless
 Revenue
  Service                   $ 67.4 $ 59.9   13%   $129.7 $115.2   13%
  Equipment                    6.1    6.5   (6%)    12.3   13.0   (5%)
                           ------- ------        ------- ------

  Total revenue               73.5   66.4   11%    142.0  128.2   11%

 Operating costs and
  expenses
  Cost of services and
   products                   37.4   38.1   (2%)    72.1   74.4   (3%)
  Selling, general and
   administrative             16.5   15.1    9%     33.6   29.4   14%
  Depreciation and
   amortization                9.3    8.7    7%     18.4   16.2   14%
                           ------- ------        ------- ------

  Total operating costs and
   expenses                   63.2   61.9    2%    124.1  120.0    3%
                           ------- ------        ------- ------

 Operating income           $ 10.3 $  4.5  129%   $ 17.9 $  8.2  118%
                           ======= ======        ======= ======

 Technology Solutions
 Revenue
  Telecom and IT equipment
   distribution             $ 39.7 $ 45.3  (12%)  $ 72.1 $ 71.8    0%
  Data center and managed
   services                   15.4   11.3   36%     29.8   21.9   36%
  Professional services        2.4    1.6   50%      4.1    3.3   24%
                           ------- ------        ------- ------

  Total revenue               57.5   58.2   (1%)   106.0   97.0    9%

 Operating costs and
  expenses
  Cost of services and
   products                   45.7   48.0   (5%)    83.6   78.5    6%
  Selling, general and
   administrative              6.3    5.4   17%     13.1   10.6   24%
  Depreciation and
   amortization                1.5    1.0   50%      2.8    1.8   56%
                           ------- ------        ------- ------

  Total operating costs and
   expenses                   53.5   54.4   (2%)    99.5   90.9    9%
                           ------- ------        ------- ------

 Operating income           $  4.0 $  3.8    5%   $  6.5 $  6.1    7%
                           ======= ======        ======= ======
Cincinnati Bell Inc.
Segment Information
(Unaudited)

 (dollars in millions)

                          Three Months            Six Months
                         Ended June 30,    %    Ended June 30,    %
                          2007    2006   Change  2007    2006   Change
                         ------- ------- -------------- ------- ------
 Revenue
   Wireline              $204.1  $203.4     0%  $407.8  $405.4     1%
   Wireless                73.5    66.4    11%   142.0   128.2    11%
   Technology Solutions    57.5    58.2    (1%)  106.0    97.0     9%
   Corporate and
    eliminations           (6.0)   (4.7)   28%   (11.4)   (9.0)   27%
                         ------- -------        ------- -------

   Total revenue         $329.1  $323.3     2%  $644.4  $621.6     4%
                         ======= =======        ======= =======

 Cost of Services and
  Products
   Wireline              $ 67.7  $ 63.6     6%  $133.1  $128.9     3%
   Wireless                37.4    38.1    (2%)   72.1    74.4    (3%)
   Technology Solutions    45.7    48.0    (5%)   83.6    78.5     6%
   Corporate and
    eliminations           (5.5)   (4.2)   31%   (10.4)   (8.2)   27%
                         ------- -------        ------- -------

   Total cost of
    services and
    products             $145.3  $145.5     0%  $278.4  $273.6     2%
                         ======= =======        ======= =======

 Selling, General &
  Administrative
   Wireline              $ 38.4  $ 36.2     6%  $ 76.3  $ 70.8     8%
   Wireless                16.5    15.1     9%    33.6    29.4    14%
   Technology Solutions     6.3     5.4    17%    13.1    10.6    24%
   Corporate and
    eliminations            4.6     5.0    (8%)    8.3     9.2   (10%)
                         ------- -------        ------- -------

   Total selling,
    general &
    administrative       $ 65.8  $ 61.7     7%  $131.3  $120.0     9%
                         ======= =======        ======= =======

 Depreciation and
  Amortization
   Wireline              $ 26.0  $ 26.0     0%  $ 52.0  $ 52.1     0%
   Wireless                 9.3     8.7     7%    18.4    16.2    14%
   Technology Solutions     1.5     1.0    50%     2.8     1.8    56%
   Corporate and
    eliminations              -       -   n/m        -       -   n/m
                         ------- -------        ------- -------

   Total depreciation
    and amortization     $ 36.8  $ 35.7     3%  $ 73.2  $ 70.1     4%
                         ======= =======        ======= =======

 Restructuring,
  Shareholder Claim
  Settlement, and Gain
  on Sale of Broadband
  Assets
   Wireline              $    -  $    -   n/m   $  2.4  $    -   n/m
   Wireless                   -       -   n/m        -       -   n/m
   Technology Solutions       -       -   n/m        -       -   n/m
   Corporate and
    eliminations            0.1    (2.8)  n/m      0.2     3.6   n/m
                         ------- -------        ------- -------

   Total restructuring,
    shareholder claim
    settlement, and gain
    on sale of broadband
    assets               $  0.1  $ (2.8)  n/m   $  2.6  $  3.6   (28%)
                         ======= =======        ======= =======

 Operating Income
   Wireline              $ 72.0  $ 77.6    (7%) $144.0  $153.6    (6%)
   Wireless                10.3     4.5   129%    17.9     8.2   118%
   Technology Solutions     4.0     3.8     5%     6.5     6.1     7%
   Corporate and
    eliminations           (5.2)   (2.7)   93%    (9.5)  (13.6)  (30%)
                         ------- -------        ------- -------

   Total operating
    income               $ 81.1  $ 83.2    (3%) $158.9  $154.3     3%
                         ======= =======        ======= =======
  Cincinnati Bell Inc.
  Segment Metric Information
  (Unaudited)


                                                 June 30, December 31,
                                                   2007       2006
                                                 -------- ------------
  (in thousands)

  Local access lines                                863.6        887.1
  DSL subscribers                                   211.8        198.3
  Custom Connections (Super Bundle) subscribers     182.5        173.2

  Postpaid wireless subscribers                     383.2        365.8
  Prepaid wireless subscribers                      172.1        162.3
                                                 -------- ------------
  Total wireless subscribers                        555.3        528.1
                                                 ======== ============

  Consumer long distance lines                      388.1        394.8
  Business long distance lines                      164.2        157.5
                                                 -------- ------------
  Total long distance lines                         552.3        552.3
                                                 ======== ============

  Data Center and Managed Services
    Raised Floor (in square feet)                 111,000       91,000
    Utilization rate                                  96%          91%
Cincinnati Bell Telephone
Local Access Line Detail
(Unaudited)

(in thousands)

           ----------------------- ----------------------- -----------
                    2005                    2006              2007
           ----------------------- ----------------------- -----------
            1Q    2Q    3Q    4Q    1Q    2Q    3Q    4Q    1Q    2Q
           ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Local
 Access
 Lines
----------

In-Territory:
 Primary
  Resi-
  dential  584.2 573.0 563.9 555.7 547.4 536.7 522.5 510.5 499.1 484.8
 Secondary
  Resi-
  dential   48.9  47.1  45.4  43.9  42.4  40.9  39.2  37.6  36.2  34.9
 Business/
  Other    296.1 294.3 292.9 293.3 290.9 291.3 291.4 288.6 287.6 287.7
           ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total In-
 Territory 929.2 914.4 902.2 892.9 880.7 868.9 853.1 836.7 822.9 807.4

Out-of-
 Territory:
 Primary
  Resi-
  dential   17.7  18.4  20.5  21.5  22.8  24.8  26.8  28.1  29.4  30.7
 Secondary
  Resi-
  dential    0.8   0.9   1.0   1.0   1.1   1.1   1.2   1.2   1.2   1.3
 Business/
  Other     12.2  12.8  13.9  15.2  16.3  17.7  19.4  21.0  22.4  24.2
           ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Out-
 of-
 Territory  30.7  32.1  35.4  37.7  40.2  43.6  47.4  50.3  53.0  56.2

           ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total
 Access
 Lines     959.9 946.5 937.6 930.6 920.9 912.5 900.5 887.0 875.9 863.6
           ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Cincinnati Bell Inc.
Net Debt Calculation
(Unaudited)



                                  June 30, December 31,     Change
                                                        --------------
(dollars in millions)               2007       2006        $       %
                                  -------- ------------ --------------

Credit facility, revolver         $      -     $      - $      -  0%
Credit facility, tranche B term
 loan                                213.0        395.0  (182.0) (46%)
Accounts receivable
 securitization facility              75.0            -     75.0  n/m
Cincinnati Bell Telephone notes      230.0        230.0        -  0%
7 1/4% Senior Notes due 2013         496.9        496.9        -  0%
7 1/4% Senior Notes due 2023          50.0         50.0        -  0%
8 3/8% Senior Subordinated Notes
 due 2014                            626.3        631.5    (5.2) (1%)
7% Senior Notes due 2015             241.9        245.0    (3.1) (1%)
Capital leases and other debt         30.3         24.0      6.3  26%
Net unamortized premium                0.7          0.8    (0.1) (13%)
                                  -------- ------------ -------- -----

  Total debt                       1,964.1      2,073.2  (109.1) (5%)

Add: Interest rate swap liability     21.8         13.5      8.3  61%
Less: Cash and cash equivalents     (26.7)       (79.4)     52.7 (66%)
                                  -------- ------------ -------- -----

  Net debt (as defined by the
   company)                       $1,959.2     $2,007.3 $ (48.1) (2%)
                                  ======== ============ ======== =====

Credit facility availability      $  246.0     $  245.2 $    0.8  0%
                                  ======== ============ ======== =====
Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)

(dollars in millions)

                                      Three Months      Six Months
                                     Ended June 30,   Ended June 30,

                                      2007    2006     2007     2006
                                    -------- ------- -------- --------

Cash provided by operating
 activities                         $   86.8 $  92.4 $  155.1 $  157.6
                                    -------- ------- -------- --------

  Capital expenditures                (48.0)  (39.0)   (90.3)   (74.6)
  Acquisition of businesses and
   remaining minority interest in
   CBW                                     -   (3.5)    (4.6)   (86.7)
  Other, net                             0.6     0.6      0.1      2.0
                                    -------- ------- -------- --------

Cash used in investing activities     (47.4)  (41.9)   (94.8)  (159.3)
                                    -------- ------- -------- --------

  Issuance of long-term debt            75.0       -     75.0        -
  Increase (decrease) in corporate
   credit facility, net                    -  (48.0)        -     12.0
  Repayment of debt                  (131.9)   (2.4)  (183.2)    (5.7)
  Issuance of common shares -
   exercise of stock options             2.2     0.1      2.3      0.7
  Debt issuance costs                  (1.3)       -    (1.3)        -
  Preferred stock dividends            (2.6)   (2.6)    (5.2)    (5.2)
  Other, net                               -       -    (0.6)      0.8
                                    -------- ------- -------- --------

Cash (used in) provided by
 financing activities                 (58.6)  (52.9)  (113.0)      2.6
                                    -------- ------- -------- --------

Net (decrease) increase in cash and
 cash equivalents                     (19.2)   (2.4)   (52.7)      0.9
Cash and cash equivalents at
 beginning of period                    45.9    29.0     79.4     25.7
                                    -------- ------- -------- --------

Cash and cash equivalents at end of
 period                             $   26.7 $  26.6 $   26.7 $   26.6
                                    ======== ======= ======== ========


Reconciliation of GAAP Cash Flow to
 Free Cash Flow (as defined by the
 company)
Net (decrease) increase in cash and
 cash equivalents                   $ (19.2) $ (2.4) $ (52.7) $    0.9
Less adjustments:
  Issuance of long-term debt and
   net change in corporate credit
   facility                           (75.0)    48.0   (75.0)   (12.0)
  Repayment of debt                    131.9     2.4    183.2      5.7
  Acquisition of businesses and
   remaining minority interest in
   CBW                                     -     3.5      4.6     86.7
                                    -------- ------- -------- --------

    Free cash flow (as defined by
     the company)                   $   37.7 $  51.5 $   60.1 $   81.3
                                    ======== ======= ======== ========

Income tax payments                 $    3.7 $   3.3 $    3.8 $    3.8
Cincinnati Bell Inc.
Reconciliation of Adjusted EBITDA (Non-GAAP) to Operating Income
 (GAAP)
(Unaudited)

 (dollars in millions)

                       -----------------------------------------------
                              Three Months Ended June 30, 2007
                       -----------------------------------------------
                                         Technology            Total
                       Wireline Wireless Solutions  Corporate  Company
                       -----------------------------------------------

 Operating Income
  (GAAP)                  $72.0    $10.3       $4.0    $(5.2)   $81.1

 Add:
  Depreciation and
   amortization            26.0      9.3        1.5        -     36.8
  Restructuring charges       -        -          -     $0.1      0.1
                       -----------------------------------------------

 EBITDA (Non-GAAP)        $98.0    $19.6       $5.5    $(5.1)  $118.0
                       ===============================================



                       -----------------------------------------------
                              Three Months Ended June 30, 2006
                       -----------------------------------------------
                                         Technology            Total
                       Wireline Wireless Solutions  Corporate  Company
                       -----------------------------------------------

 Operating Income
  (GAAP)                  $77.6     $4.5       $3.8    $(2.7)   $83.2

 Add:
  Depreciation and
   amortization            26.0      8.7        1.0        -     35.7
  Restructuring and
   gain on sale of
   broadband assets           -        -          -     (2.8)    (2.8)
                       -----------------------------------------------

 EBITDA (Non-GAAP)       $103.6    $13.2       $4.8    $(5.5)  $116.1
                       ===============================================



                       -----------------------------------------------
                               Six Months Ended June 30, 2007
                       -----------------------------------------------
                                         Technology            Total
                       Wireline Wireless Solutions  Corporate  Company
                       -----------------------------------------------

 Operating Income
  (GAAP)                 $144.0    $17.9       $6.5    $(9.5)  $158.9

 Add:
  Depreciation and
   amortization            52.0     18.4        2.8        -     73.2
  Restructuring charges     2.4        -          -      0.2      2.6
                       -----------------------------------------------

 EBITDA (Non-GAAP)       $198.4    $36.3       $9.3    $(9.3)  $234.7
                       ===============================================



                       -----------------------------------------------
                               Six Months Ended June 30, 2006
                       -----------------------------------------------
                                         Technology            Total
                       Wireline Wireless Solutions  Corporate  Company
                       -----------------------------------------------

 Operating Income
  (GAAP)                 $153.6     $8.2       $6.1   $(13.6)  $154.3

 Add:
  Depreciation and
   amortization            52.1     16.2        1.8        -     70.1
  Restructuring,
   shareholder claim
   settlement and gain
   on sale of broadband
   assets                     -        -          -      3.6      3.6
                       -----------------------------------------------

 EBITDA (Non-GAAP)       $205.7    $24.4       $7.9   $(10.0)  $228.0
                       ===============================================
Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)

  (dollars in millions, except per share amounts)
                                                         Three
                          Three                       Months Ended
                       Months Ended                  June 30, 2007
                        June 30,                  Before Special Items
                       2007 (GAAP)  Special Items      (Non-GAAP)
                      ------------------------------------------------
                                          A
  Revenue              $      329.1  $          -  $             329.1

  Costs and expenses
    Cost of services
     and products             145.3             -                145.3
    Selling, general
     and
     administrative            65.8             -                 65.8
    Depreciation and
     amortization              36.8             -                 36.8
    Restructuring
     charges                    0.1             -                  0.1
                      ------------- ------------- --------------------
      Operating
       income                  81.1             -                 81.1

  Interest expense             39.0             -                 39.0
  Other income, net           (0.2)             -                (0.2)
                      ------------- ------------- --------------------

  Income before
   income taxes                42.3             -                 42.3
  Income tax expense           18.1             -                 18.1
                      ------------- ------------- --------------------

  Net income                   24.2             -                 24.2

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

  Net income
   applicable to
   common shareowners  $       21.6  $          -  $              21.6
                      ============= ============= ====================


  Weighted average
   diluted common
   shares                     257.6         257.6                257.6
                      ============= ============= ====================

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


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

A There were no special items in the second quarter of 2007.
Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)

 (dollars in millions, except
  per share amounts)                  Special Items
                                -------------------------



                                                          Six Months
                                                           Ended June
                                                            30, 2007
                    Six Months                               Before
                     Ended June                Dividend     Special
                     30, 2007   Restructuring    From      Items (Non-
                       (GAAP)       Charge     Investment     GAAP)
                    ----------- ------------- ----------- ------------
                                      A            B
Revenue                  $644.4            $-          $-       $644.4

Costs and expenses
  Cost of services
   and products           278.4             -           -        278.4
  Selling, general
   and
   administrative         131.3             -           -        131.3
  Depreciation and
   amortization            73.2             -           -         73.2
  Restructuring
   charges                  2.6         (2.6)           -            -
                    ----------- ------------- ----------- ------------
    Operating
     income               158.9           2.6           -        161.5

Interest expense           79.1             -           -         79.1
Other income, net         (2.2)             -         1.9        (0.3)
                    ----------- ------------- ----------- ------------

Income before
 income taxes              82.0           2.6       (1.9)         82.7
Income tax expense         35.3           1.0       (0.8)         35.5
                    ----------- ------------- ----------- ------------

Net income                 46.7           1.6       (1.1)         47.2

Preferred stock
 dividends                  5.2             -           -          5.2
                    ----------- ------------- ----------- ------------

Net income
 applicable to
 common shareowners       $41.5          $1.6      $(1.1)        $42.0
                    =========== ============= =========== ============


Weighted average
 diluted common
 shares                   256.4         256.4       256.4        256.4
                    =========== ============= =========== ============

Diluted earnings
 per common share         $0.16         $0.01     $(0.01)        $0.16
                    =========== ============= =========== ============


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

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

B One-time dividend received from cost investment.
Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)

 (dollars in millions,
  except per share
  amounts)                           Special Items
                                     -------------
                                                         Three
                            Three        Gain on      Months Ended
                         Months Ended    Sale of     June 30, 2006
                           June 30,     Broadband Before Special Items
                         2006 (GAAP)     Assets        (Non-GAAP)
                         ---------------------------------------------
                                            A
 Revenue                 $     323.3      $    -  $             323.3

 Costs and expenses
  Cost of services and
   products                    145.5           -                145.5
  Selling, general and
   administrative               61.7           -                 61.7
  Depreciation and
   amortization                 35.7           -                 35.7
  Gain on sale of
   broadband assets             (2.9)        2.9                    -
  Restructuring charges          0.1           -                  0.1
                         ------------   --------- --------------------
   Operating income             83.2        (2.9)                80.3

 Interest expense               40.3           -                 40.3
 Other income, net              (0.1)          -                 (0.1)
                         ------------   --------- --------------------

 Income before income
  taxes                         43.0        (2.9)                40.1
 Income tax expense             18.7        (1.2)                17.5
                         ------------   --------- --------------------

 Net income                     24.3        (1.7)                22.6

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

 Net income applicable to
  common shareowners     $      21.7      $ (1.7) $              20.0
                         ============   ========= ====================


 Weighted average diluted
  common shares                252.4       252.4                252.4
                         ============   ========= ====================

 Diluted earnings per
  common share           $      0.09      $(0.01) $              0.08
                         ============   ========= ====================


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

A Gain on sale of broadband assets due to expiration of certain
   indemnifications that were previously reserved.
Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) -
 Reconciliation to Reported Results
(Unaudited)

   (dollars in millions, except
    per share amounts)                  Special Items
                               -------------------------------
                                                                Six
                                                               Months
                                                               Ended
                                                              June 30,
                         Six                                    2006
                        Months                                 Before
                        Ended    Gain on                      Special
                       June 30,  Sale of  Shareholder Income   Items
                         2006   Broadband    Claim      Tax    (Non-
                        (GAAP)   Assets   Settlement  Expense   GAAP)
                       -----------------------------------------------
                                    A          B         C
   Revenue             $ 621.6  $      -      $    -  $    -  $ 621.6

   Costs and expenses
    Cost of services
     and products        273.6         -           -       -    273.6
    Selling, general
     and administrative  120.0         -           -       -    120.0
    Depreciation and
     amortization         70.1         -           -       -     70.1
    Shareholder claim
     settlement            6.3         -        (6.3)      -        -
    Gain on sale of
     broadband assets     (2.9)      2.9           -       -        -
    Restructuring
     charges               0.2         -           -       -      0.2
                       -------- --------- ----------- ------- --------
          Operating
           income        154.3      (2.9)        6.3       -    157.7

   Minority interest
    expense                0.4         -           -       -      0.4
   Interest expense       79.8         -           -       -     79.8
   Other income, net      (0.2)        -           -       -     (0.2)
                       -------- --------- ----------- ------- --------

   Income before income
    taxes                 74.3      (2.9)        6.3       -     77.7
   Income tax expense     35.9      (1.2)        2.5    (3.6)    33.6
                       -------- --------- ----------- ------- --------

   Net income             38.4      (1.7)        3.8     3.6     44.1

   Preferred stock
    dividends              5.2         -           -       -      5.2
                       -------- --------- ----------- ------- --------

   Net income
    applicable to
    common shareowners $  33.2  $   (1.7)     $  3.8  $  3.6  $  38.9
                       ======== ========= =========== ======= ========


   Weighted average
    diluted common
    shares               251.9     251.9       251.9   251.9    251.9
                       ======== ========= =========== ======= ========

   Diluted earnings per
    common share       $  0.13  $  (0.01)     $ 0.02  $ 0.01  $  0.15
                       ======== ========= =========== ======= ========


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

 A  Gain on sale of broadband assets due to expiration of certain
     indemnifications that were previously reserved.

 B  Reserve of $6.3 million recorded for settlement of a shareholder
     claim.

 C  Kentucky net operating loss carry-forward write-off due to
     regulations issued in the first quarter of 2006.
Cincinnati Bell Inc.
Reconciliation of Adjusted EBITDA (Non-GAAP) Guidance to Operating
 Income (GAAP) Guidance
(Unaudited)

  (dollars in millions)

                                                               2007
                                                            ----------
  Consolidated 2007 Operating Income (GAAP) Guidance         $     311

  Add:
        Depreciation and amortization                        $     151
        Restructuring charges                                $       3
                                                            ----------

  Consolidated 2007 Adjusted EBITDA Guidance                 $     465
                                                            ==========

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

SOURCE: Cincinnati Bell Inc.