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Cincinnati Bell Inc. Reports Year-Over-Year Growth in Third Quarter of 2008

10/30/08

Solid Third Quarter Performance Led by Increased Wireless Revenue and Operating Income

CINCINNATI--(BUSINESS WIRE)--Oct. 30, 2008--Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the third quarter of 2008 including revenue of $347 million, up $2 million or 1 percent year-over-year. Operating income was $80 million with net income of $27 million. Earnings per share on a diluted basis were 10 cents, which is a 12 percent increase over the third quarter of 2007. Adjusted earnings before interest, taxes, depreciation and amortization(1) (Adjusted EBITDA) equaled $120 million, which was even with a year ago.

"Cincinnati Bell's third-quarter results demonstrate solid performance in the face of challenging times in the U.S. economy," said Jack Cassidy, president and chief executive officer of Cincinnati Bell. "As a company we continue to deliver superior network quality, service, and value to consumers and businesses. Our customers in Greater Cincinnati and Dayton experienced this firsthand when we took quick and decisive action to respond to the region's largest-ever commercial power outage in September."

    Quarterly Highlights

    --  Total revenue increased $2 million to $347 million versus the
        third quarter of 2007 driven by growth of $21 million in
        service revenue from Wireless, Wireline data, long distance,
        VoIP, and Data Center and Managed Services.

    --  Wireless service revenue in the quarter was $74 million, up $6
        million or 9 percent from a year ago. This increase
        contributed to growth in Wireless operating income and
        Adjusted EBITDA of 30 percent and 10 percent, respectively.
        The Adjusted EBITDA margin(1) expanded 1 percentage point.

    --  In the Technology Solutions segment, operating income of $6
        million was up 2 percent from the prior year quarter. Adjusted
        EBITDA increased 33 percent primarily due to the growth of
        Data Center and Managed Services revenue, which was up 39
        percent from the third quarter of 2007.

    --  Year-over-year DSL subscriber growth equaled 6 percent. At the
        end of the quarter, Cincinnati Bell had a total of 231,000 DSL
        subscribers.

    --  Quarterly free cash flow(2) was $23 million. Capital
        expenditures in the third quarter equaled $56 million, down $7
        million from a year ago. Net debt(3) was $1.98 billion at the
        end of the quarter.

    --  Cincinnati Bell also purchased an additional 5 million shares
        of common stock for a total of $21 million in the third
        quarter. The company has now purchased 16 million shares under
        its current common stock repurchase program or 7 percent of
        outstanding shares. Cincinnati Bell expects to continue
        repurchases and the timing and nature are subject to market
        conditions and applicable securities laws.

"The strength of Cincinnati Bell's market positions, consistent strategy execution, and attention to cost structure continue to produce strong and stable free cash flow," said Gary Wojtaszek, chief financial officer. "As a result, we are able to strengthen our balance sheet by retiring debt and repurchasing shares of common stock."

Wireline Segment

Quarterly Wireline revenue was $201 million, down $1 million or 1 percent from the third quarter of 2007. Increased revenue from data services, long distance, expansion markets and the eGIX acquisition partially offset lower voice revenue in Cincinnati Bell's traditional service area. Operating income totaled $66 million in the quarter with Adjusted EBITDA of $93 million. Year-over-year total access line loss in the third quarter was 6.8 percent reflecting a decline in the company's in-territory consumer access lines. Business lines were even with a year ago while expansion market access lines increased 14 percent.

Wireless Segment

Quarterly revenue from the Wireless segment increased 8 percent to $81 million and operating income equaled $12 million, up $3 million from a year ago, primarily due to a $6 million, or 9 percent, increase in service revenue. Adjusted EBITDA was $21 million, up $2 million, or 10 percent compared with the third quarter of 2007.

Cincinnati Bell had 567,000 wireless customers at the end of the quarter, which reflected year-over-year growth of 6 percent in its postpaid wireless customer base. Postpaid quarterly average revenue per user (ARPU) was $48.82, an increase of $1.41 year-over-year and $1.46 sequentially. Prepaid ARPU was $26.33, up 15 percent from the third quarter of 2007 while prepaid subscribers declined 8 percent.

Technology Solutions

Technology Solutions quarterly revenue was $73 million, down $1 million, or 1 percent from a year ago. Data Center and Managed Services revenue grew $7 million, a 39 percent increase compared to the third quarter of 2007 while lower-margin Telecommunications and IT Equipment revenue declined $10 million or 19 percent from the prior year. Operating income totaled $6 million. Adjusted EBITDA was $10 million, up 33 percent from the third quarter of 2007.

Capital expenditures of $23 million in the quarter were used primarily for construction of future data center space. Billable data center space of 202,000 square feet was unchanged from the end of the second quarter of 2008. A total of 3,000 square feet began billing in the quarter, which resulted in an 88 percent utilization rate compared to 87 percent in the second quarter of 2008.


2008 Guidance

    Cincinnati Bell updates its financial guidance for 2008:
           Category                        2008 Guidance
-----------------------------------------------------------------
Revenue                                Approx. $1.4 billion
-----------------------------------------------------------------
Adjusted EBITDA                        Approx. $480 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 third 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 (866) 780-1233. Callers located outside of the U.S. and Canada may dial (816) 581-1571. A taped replay of the conference call will be available one hour after the conclusion of the call until 5:00 p.m. on Thursday, Nov. 13, 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 7054832. 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; uncertainty in U.S. and world securities markets that could result in increased costs for the Company and limit its financing alternatives; 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 Oct. 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, adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Adjusted EBITDA margin. 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)Adjusted EBITDA and Adjusted EBITDA margin provide useful measures of operational performance. The company defines Adjusted EBITDA as GAAP Operating Income plus depreciation, amortization, restructuring charges, asset impairments and other special items. The company defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenues. Adjusted EBITDA and Adjusted EBITDA margin should not be considered as alternatives to comparable GAAP measures of profitability and may not be comparable with these measures as defined by other companies.

(2)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.

(3)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.

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.

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 September 30,    Change
                                        2008      2007      $      %
                                      --------- --------- ------ -----

 Revenue                               $ 346.5   $ 344.3  $ 2.2    1%

 Costs and expenses
   Cost of services and products         154.8     159.0   (4.2)  (3%)
   Selling, general and administrative    71.5      65.3    6.2    9%
   Depreciation and amortization          38.7      37.7    1.0    3%
   Restructuring charges (gains)           1.7      (0.3)   2.0   n/m
   Asset impairment                          -         -      -   n/m
                                      --------- --------- ------ -----

       Operating income                   79.8      82.6   (2.8)  (3%)

 Interest expense                         35.0      38.0   (3.0)  (8%)
 Other expense (income), net              (1.0)      0.2   (1.2)  n/m
                                      --------- --------- ------ -----

 Income before income taxes               45.8      44.4    1.4    3%
 Income tax expense                       19.2      18.7    0.5    3%
                                      --------- --------- ------ -----

 Net income                               26.6      25.7    0.9    4%

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

 Net income applicable to common
  shareowners                          $  24.0   $  23.1  $ 0.9    4%
                                      ========= ========= ====== =====


 Basic earnings per common share       $  0.10   $  0.09
                                      ========= =========
 Diluted earnings per common share     $  0.10   $  0.09
                                      ========= =========

 Weighted average common shares
  outstanding
   (in millions)
 -------------------------------------
   - Basic                               233.7     247.6
   - Diluted                             239.2     257.2



                                         Nine Months
                                     Ended September 30,    Change
                                        2008      2007      $      %
                                     ---------- -------- ------- -----

 Revenue                             $ 1,046.2  $ 988.6  $ 57.6    6%

 Costs and expenses
    Cost of services and products        473.6    437.5    36.1    8%
    Selling, general and
     administrative                      213.8    196.6    17.2    9%
    Depreciation and amortization        113.7    110.8     2.9    3%
    Restructuring charges (gains)         27.1      2.3    24.8   n/m
    Asset impairment                       1.2        -     1.2   n/m
                                     ---------- -------- ------- -----

          Operating income               216.8    241.4   (24.6) (10%)

 Interest expense                        106.1    117.1   (11.0)  (9%)
 Other expense (income), net              (2.4)    (2.1)   (0.3)  14%
                                     ---------- -------- ------- -----

 Income before income taxes              113.1    126.4   (13.3) (11%)
 Income tax expense                       48.0     54.0    (6.0) (11%)
                                     ---------- -------- ------- -----

 Net income                               65.1     72.4    (7.3) (10%)

 Preferred stock dividends                 7.8      7.8       -    0%
                                     ---------- -------- ------- -----

 Net income applicable to common
  shareowners                        $    57.3  $  64.6  $ (7.3) (11%)
                                     ========== ======== ======= =====


 Basic earnings per common share     $    0.24  $  0.26
                                     ========== ========
 Diluted earnings per common share   $    0.23  $  0.25
                                     ========== ========

 Weighted average common shares
  outstanding
   (in millions)
 -----------------------------------
    - Basic                              240.6    247.3
    - Diluted                            247.0    256.6
Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)



                                         Three Months
                                      Ended September 30,    Change
                                        2008       2007     $      %
                                      ---------  -------- ------ -----
 Wireline
 Revenue
    Voice - local service              $   96.0  $ 105.8  $(9.8)  (9%)
    Data                                   68.8     65.8    3.0    5%
    Long distance and VoIP                 24.8     19.8    5.0   25%
    Other                                  11.0     10.6    0.4    4%
                                      ---------  -------- ------ -----

    Total revenue                         200.6    202.0   (1.4)  (1%)

 Operating costs and expenses
    Cost of services and products          67.5     66.0    1.5    2%
    Selling, general and
     administrative                        40.2     37.1    3.1    8%
    Depreciation and amortization          25.7     26.2   (0.5)  (2%)
    Restructuring charges (gains)           1.6     (0.3)   1.9   n/m
    Asset Impairment                          -        -      -   n/m
                                      ---------  -------- ------ -----

    Total operating costs and expenses    135.0    129.0    6.0    5%
                                      ---------  -------- ------ -----

 Operating income                      $   65.6  $  73.0  $(7.4) (10%)
                                      =========  ======== ====== =====

 Wireless
 Revenue
    Service                            $   74.2  $  68.2  $ 6.0    9%
    Equipment                               6.6      6.9   (0.3)  (4%)
                                      ---------  -------- ------ -----

    Total revenue                          80.8     75.1    5.7    8%

 Operating costs and expenses
    Cost of services and products          41.7     39.9    1.8    5%
    Selling, general and
     administrative                        18.6     16.6    2.0   12%
    Depreciation and amortization           8.7      9.6   (0.9)  (9%)
    Restructuring charges                   0.1        -    0.1   n/m
                                      ---------  -------- ------ -----

    Total operating costs and expenses     69.1     66.1    3.0    5%
                                      ---------  -------- ------ -----

 Operating income                      $   11.7  $   9.0  $ 2.7   30%
                                      =========  ======== ====== =====

 Technology Solutions
 Revenue
    Telecom and IT equipment
     distribution                      $   43.1  $  52.9  $(9.8) (19%)
    Data center and managed services       25.6     18.4    7.2   39%
    Professional services                   4.6      2.8    1.8   64%
                                      ---------  -------- ------ -----

    Total revenue                          73.3     74.1   (0.8)  (1%)

 Operating costs and expenses
    Cost of services and products          53.4     59.5   (6.1) (10%)
    Selling, general and
     administrative                         9.8      7.0    2.8   40%
    Depreciation and amortization           4.3      1.9    2.4   n/m
    Restructuring charges                     -        -      -   n/m
                                      ---------  -------- ------ -----

    Total operating costs and expenses     67.5     68.4   (0.9)  (1%)
                                      ---------  -------- ------ -----

 Operating income                      $    5.8  $   5.7  $ 0.1    2%
                                      =========  ======== ====== =====



                                         Nine Months
                                     Ended September 30,    Change
                                       2008      2007       $      %
                                     --------- --------- ------- -----
 Wireline
 Revenue
    Voice - local service             $  295.9  $  328.7 $(32.8) (10%)
    Data                                 204.3     191.8   12.5    7%
    Long distance and VoIP                73.7      58.3   15.4   26%
    Other                                 31.8      31.0    0.8    3%
                                     --------- --------- ------- -----

    Total revenue                        605.7     609.8   (4.1)  (1%)

 Operating costs and expenses
    Cost of services and products        201.4     199.0    2.4    1%
    Selling, general and
     administrative                      118.7     113.5    5.2    5%
    Depreciation and amortization         75.9      78.1   (2.2)  (3%)
    Restructuring charges (gains)         26.0       2.1   23.9   n/m
    Asset Impairment                       1.2         -    1.2   n/m
                                     --------- --------- ------- -----

    Total operating costs and
     expenses                            423.2     392.7   30.5    8%
                                     --------- --------- ------- -----

 Operating income                     $  182.5  $  217.1 $(34.6) (16%)
                                     ========= ========= ======= =====

 Wireless
 Revenue
    Service                           $  218.5  $  197.9 $ 20.6   10%
    Equipment                             19.1      19.2   (0.1)  (1%)
                                     --------- --------- ------- -----

    Total revenue                        237.6     217.1   20.5    9%

 Operating costs and expenses
    Cost of services and products        122.3     112.0   10.3    9%
    Selling, general and
     administrative                       52.2      50.2    2.0    4%
    Depreciation and amortization         26.3      28.1   (1.8)  (6%)
    Restructuring charges                  0.5         -    0.5   n/m
                                     --------- --------- ------- -----

    Total operating costs and
     expenses                            201.3     190.3   11.0    6%
                                     --------- --------- ------- -----

 Operating income                     $   36.3  $   26.8 $  9.5   35%
                                     ========= ========= ======= =====

 Technology Solutions
 Revenue
    Telecom and IT equipment
     distribution                     $  142.9  $  125.0 $ 17.9   14%
    Data center and managed services      72.2      48.2   24.0   50%
    Professional services                 11.4       6.9    4.5   65%
                                     --------- --------- ------- -----

    Total revenue                        226.5     180.1   46.4   26%

 Operating costs and expenses
    Cost of services and products        171.7     143.2   28.5   20%
    Selling, general and
     administrative                       29.7      20.1    9.6   48%
    Depreciation and amortization         11.4       4.6    6.8   n/m
    Restructuring charges                  0.4         -    0.4   n/m
                                     --------- --------- ------- -----

    Total operating costs and
     expenses                            213.2     167.9   45.3   27%
                                     --------- --------- ------- -----

 Operating income                     $   13.3  $   12.2 $  1.1    9%
                                     ========= ========= ======= =====
Cincinnati Bell Inc.
Segment Information
(Unaudited)
(Dollars in millions)



                                         Three Months
                                      Ended September 30,    Change
                                        2008      2007      $      %
                                      --------- --------- ------ -----
 Revenue
   Wireline                            $ 200.6  $  202.0  $(1.4)  (1%)
   Wireless                               80.8      75.1    5.7    8%
   Technology Solutions                   73.3      74.1   (0.8)  (1%)
   Eliminations                           (8.2)     (6.9)  (1.3)  19%
                                      --------- --------- ------ -----

   Total revenue                       $ 346.5  $  344.3  $ 2.2    1%
                                      ========= ========= ====== =====

 Cost of Services and Products
   Wireline                            $  67.5  $   66.0  $ 1.5    2%
   Wireless                               41.7      39.9    1.8    5%
   Technology Solutions                   53.4      59.5   (6.1) (10%)
   Eliminations                           (7.8)     (6.4)  (1.4)  22%
                                      --------- --------- ------ -----

   Total cost of services and
    products                           $ 154.8  $  159.0  $(4.2)  (3%)
                                      ========= ========= ====== =====

 Selling, General and Administrative
   Wireline                            $  40.2  $   37.1  $ 3.1    8%
   Wireless                               18.6      16.6    2.0   12%
   Technology Solutions                    9.8       7.0    2.8   40%
   Corporate and eliminations              2.9       4.6   (1.7) (37%)
                                      --------- --------- ------ -----

   Total selling, general and
    administrative                     $  71.5  $   65.3  $ 6.2    9%
                                      ========= ========= ====== =====

 Depreciation and Amortization
   Wireline                            $  25.7  $   26.2  $(0.5)  (2%)
   Wireless                                8.7       9.6   (0.9)  (9%)
   Technology Solutions                    4.3       1.9    2.4  n/m
   Corporate                                 -         -      -  n/m
                                      --------- --------- ------ -----

   Total depreciation and
    amortization                       $  38.7  $   37.7  $ 1.0    3%
                                      ========= ========= ====== =====

 Restructuring and Asset Impairment
  Charges
   Wireline                            $   1.6  $   (0.3) $ 1.9  n/m
   Wireless                                0.1         -    0.1  n/m
   Technology Solutions                      -         -      -  n/m
   Corporate                                 -         -      -  n/m
                                      --------- --------- ------ -----

   Total restructuring and asset
    impairment charges                 $   1.7  $   (0.3) $ 2.0  n/m
                                      ========= ========= ====== =====

 Operating Income
   Wireline                            $  65.6  $   73.0  $(7.4) (10%)
   Wireless                               11.7       9.0    2.7   30%
   Technology Solutions                    5.8       5.7    0.1    2%
   Corporate and eliminations             (3.3)     (5.1)   1.8  (35%)
                                      --------- --------- ------ -----

   Total operating income              $  79.8  $   82.6  $(2.8)  (3%)
                                      ========= ========= ====== =====

                                         Nine Months
                                     Ended September 30,    Change
                                        2008      2007      $      %
                                     ---------- -------- ------- -----
 Revenue
  Wireline                            $  605.7  $ 609.8  $ (4.1)  (1%)
  Wireless                               237.6    217.1    20.5    9%
  Technology Solutions                   226.5    180.1    46.4   26%
  Eliminations                           (23.6)   (18.4)   (5.2)  28%
                                     ---------- -------- ------- -----

  Total revenue                       $1,046.2  $ 988.6  $ 57.6    6%
                                     ========== ======== ======= =====

 Cost of Services and Products
  Wireline                            $  201.4  $ 199.0  $  2.4    1%
  Wireless                               122.3    112.0    10.3    9%
  Technology Solutions                   171.7    143.2    28.5   20%
  Eliminations                           (21.8)   (16.7)   (5.1)  31%
                                     ---------- -------- ------- -----

  Total cost of services and
   products                           $  473.6  $ 437.5  $ 36.1    8%
                                     ========== ======== ======= =====

 Selling, General and Administrative
  Wireline                            $  118.7  $ 113.5  $  5.2    5%
  Wireless                                52.2     50.2     2.0    4%
  Technology Solutions                    29.7     20.1     9.6   48%
  Corporate and eliminations              13.2     12.8     0.4    3%
                                     ---------- -------- ------- -----

  Total selling, general and
   administrative                     $  213.8  $ 196.6  $ 17.2    9%
                                     ========== ======== ======= =====

 Depreciation and Amortization
  Wireline                            $   75.9  $  78.1  $ (2.2)  (3%)
  Wireless                                26.3     28.1    (1.8)  (6%)
  Technology Solutions                    11.4      4.6     6.8  n/m
  Corporate                                0.1        -     0.1  n/m
                                     ---------- -------- ------- -----

  Total depreciation and
   amortization                       $  113.7  $ 110.8  $  2.9    3%
                                     ========== ======== ======= =====

 Restructuring and Asset Impairment
  Charges
  Wireline                            $   27.2  $   2.1  $ 25.1  n/m
  Wireless                                 0.5        -     0.5  n/m
  Technology Solutions                     0.4        -     0.4  n/m
  Corporate                                0.2      0.2       -    0%
                                     ---------- -------- ------- -----

  Total restructuring and asset
   impairment charges                 $   28.3  $   2.3  $ 26.0  n/m
                                     ========== ======== ======= =====

 Operating Income
  Wireline                            $  182.5  $ 217.1  $(34.6) (16%)
  Wireless                                36.3     26.8     9.5   35%
  Technology Solutions                    13.3     12.2     1.1    9%
  Corporate and eliminations             (15.3)   (14.7)   (0.6)   4%
                                     ---------- -------- ------- -----

  Total operating income              $  216.8  $ 241.4  $(24.6) (10%)
                                     ========== ======== ======= =====
Cincinnati Bell Inc.
Segment Metric Information
(Unaudited)


                                       September 30,      December 31,
                                           2008               2007
                                       -------------      ------------
   (in thousands)

   Local access lines                          791.4             834.3
   DSL subscribers                             231.1             221.5


   Postpaid wireless subscribers               413.6             400.4
   Prepaid wireless subscribers                153.4             170.6
                                       -------------      ------------

   Total wireless subscribers                  567.0             571.0
                                       =============      ============


   Consumer long distance lines                356.9             374.2
   Business long distance lines                178.0             174.1
                                       -------------      ------------

   Total long distance lines                   534.9             548.3
                                       =============      ============


   Data Center and Managed Services
      Raised Floor (in square feet)          202,000           144,000
      Utilization rate                           88%               93%
Cincinnati Bell Telephone
Local Access Line Detail
(Unaudited)
(In thousands)



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

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

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

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


                                                     -----------------
                                                           2008
                                                     -----------------
                                                      1Q    2Q    3Q
                                                     ----- ----- -----
Local Access Lines
----------------------------------------------------

  In-Territory:
     Primary Residential                             441.2 427.6 414.5
     Secondary Residential                            30.7  29.5  28.4
     Business/ Other                                 284.3 283.4 280.2
                                                     -----------------
  Total In-Territory                                 756.2 740.5 723.1

  Out-of-Territory:
     Primary Residential                              32.8  32.7  33.7
     Secondary Residential                             1.4   1.3   1.3
     Business/ Other                                  30.2  31.2  33.3
                                                     -----------------
  Total Out-of-Territory                              64.4  65.2  68.3

                                                     -----------------
  Total Access Lines                                 820.6 805.7 791.4
                                                     =================
Cincinnati Bell Inc.
Net Debt Calculation
(Unaudited)
(Dollars in millions)


                              September 30, December 31,    Change
                                  2008          2007        $      %
                              ------------- ------------ ------- -----

Credit facility, revolver         $   80.0     $   55.0  $ 25.0   45%
Credit facility, tranche B
 term loan                           208.0        211.0    (3.0)  (1%)
7 1/4% Senior Notes due 2013         465.2        470.5    (5.3)  (1%)
8 3/8% Senior Subordinated
 Notes due 2014                      585.5        637.4   (51.9)  (8%)
7% Senior Notes due 2015             251.4        250.6     0.8    0%
7 1/4% Senior Notes due 2023          50.0         50.0       -    0%
Accounts receivable
 securitization facility              78.0         75.0     3.0    4%
Various Cincinnati Bell
 Telephone notes                     230.0        230.0       -    0%
Capital leases and other debt         41.9         29.6    12.3   42%
Net unamortized premium                0.5          0.6    (0.1) (17%)
                              ------------- ------------ ------- -----

   Total debt                      1,990.5      2,009.7   (19.2)  (1%)

Less: Interest rate swap
 asset                                (4.8)        (2.9)   (1.9)  66%
Less: Cash and cash
 equivalents                          (8.0)       (26.1)   18.1  (69%)
                              ------------- ------------ ------- -----

   Net debt (as defined by
    the company)                  $1,977.7     $1,980.7  $ (3.0)   0%
                              ============= ============ ======= =====

Credit facility availability      $  142.9     $  167.9  $(25.0) (15%)
                              ============= ============ ======= =====
Cincinnati Bell Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)


                                  Three Months         Nine Months
                               Ended September 30, Ended September 30,
                                 2008       2007     2008      2007
                               ---------  -------- --------- ---------

 Cash provided by operating
  activities                    $  78.4    $ 54.2   $ 266.3   $ 209.3
                               ---------  -------- --------- ---------

  Capital expenditures            (55.5)    (62.1)   (158.7)   (152.4)
  Acquisitions of businesses          -         -     (21.6)     (4.6)
  Other, net                          -      (0.8)      1.0      (0.7)
                               ---------  -------- --------- ---------

 Cash used in investing
  activities                      (55.5)    (62.9)   (179.3)   (157.7)
                               ---------  -------- --------- ---------

  Issuance of long-term debt        3.0         -       3.0      75.0
  Change in corporate credit
   facility, net                   (6.0)     40.0      25.0      40.0
  Repayment of debt               (12.8)    (28.0)    (57.4)   (211.2)
  Issuance of common shares -
   exercise of stock options          -         -       0.3       2.3
  Preferred stock dividends           -      (2.6)     (7.8)     (7.8)
  Common stock repurchase         (20.5)        -     (67.5)        -
  Other, net                          -      (0.1)     (0.7)     (2.0)
                               ---------  -------- --------- ---------

 Cash (used in) provided by
  financing activities            (36.3)      9.3    (105.1)   (103.7)
                               ---------  -------- --------- ---------

 Net increase (decrease) in
  cash and cash equivalents       (13.4)      0.6     (18.1)    (52.1)
 Cash and cash equivalents at
  beginning of period              21.4      26.7      26.1      79.4
                               ---------  -------- --------- ---------

 Cash and cash equivalents at
  end of period                 $   8.0    $ 27.3   $   8.0   $  27.3
                               =========  ======== ========= =========


 Reconciliation of GAAP Cash
  Flow to
  Free Cash Flow (as defined
   by the company)
 Net increase (decrease) in
  cash and cash equivalents     $ (13.4)   $  0.6   $ (18.1)  $ (52.1)
 Less adjustments:
  Issuance of long-term debt
   and change in corporate
   credit facility                  3.0     (40.0)    (28.0)   (115.0)
  Repayment of debt                12.8      28.0      57.4     211.2
  Common stock repurchase          20.5         -      67.5         -
  Acquisitions of businesses          -         -      21.6       4.6
                               ---------  -------- --------- ---------

     Free cash flow (as
      defined by the company)   $  22.9    $(11.4)  $ 100.4   $  48.7
                               =========  ======== ========= =========

 Income tax payments            $     -    $  1.8   $   1.9   $   5.6
                               =========  ======== ========= =========
Cincinnati Bell Inc.
Reconciliation of Adjusted EBITDA (Non-GAAP) to Operating Income
 (GAAP)
(Unaudited)
(Dollars in millions)


                       -----------------------------------------------
                            Three Months Ended September 30, 2008
                       -----------------------------------------------
                                          Technology            Total
                       Wireline  Wireless Solutions  Corporate Company
                       -----------------------------------------------

 Operating Income
  (GAAP)               $  65.6     $11.7      $ 5.8   $ (3.3)  $ 79.8
 Add:
   Depreciation and
    amortization          25.7       8.7        4.3        -     38.7
   Restructuring and
    asset impairment
    charges                1.6       0.1          -        -      1.7
                       -----------------------------------------------

 Adjusted EBITDA (Non-
  GAAP)                $  92.9     $20.5      $10.1   $ (3.3)  $120.2
                       ===============================================



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

 Operating Income
  (GAAP)               $  73.0     $ 9.0      $ 5.7   $ (5.1)  $ 82.6
 Add:
   Depreciation and
    amortization          26.2       9.6        1.9        -     37.7
   Restructuring gains    (0.3)        -          -        -     (0.3)
                       -----------------------------------------------

 Adjusted EBITDA (Non-
  GAAP)                $  98.9     $18.6      $ 7.6   $ (5.1)  $120.0
                       ===============================================

 Year-over-year dollar
  change in Adjusted
  EBITDA                 ($6.0)    $ 1.9      $ 2.5   $  1.8   $  0.2

 Year-over-year
  percentage change in
  Adjusted EBITDA           (6%)      10%        33%     (35%)      0%



                       -----------------------------------------------
                            Nine Months Ended September 30, 2008
                       -----------------------------------------------
                                          Technology            Total
                       Wireline  Wireless Solutions  Corporate Company
                       --------- -------- ---------- --------- -------

 Operating Income
  (GAAP)               $ 182.5     $36.3      $13.3   $(15.3)  $216.8
 Add:
   Depreciation and
    amortization          75.9      26.3       11.4      0.1    113.7
   Restructuring and
    asset impairment
    charges               27.2       0.5        0.4      0.2     28.3
                       -----------------------------------------------

 Adjusted EBITDA (Non-
  GAAP)                $ 285.6     $63.1      $25.1   $(15.0)  $358.8
                       ===============================================



                       -----------------------------------------------
                            Nine Months Ended September 30, 2007
                       -----------------------------------------------
                                          Technology            Total
                       Wireline  Wireless Solutions  Corporate Company
                       -----------------------------------------------

 Operating Income
  (GAAP)               $ 217.1     $26.8      $12.2   $(14.7)  $241.4
 Add:
   Depreciation and
    amortization          78.1      28.1        4.6        -    110.8
   Restructuring
    charges                2.1         -          -      0.2      2.3
                       -----------------------------------------------

 Adjusted EBITDA (Non-
  GAAP)                $ 297.3     $54.9      $16.8   $(14.5)  $354.5
                       ===============================================

 Year-over-year dollar
  change in Adjusted
  EBITDA                ($11.7)    $ 8.2      $ 8.3    ($0.5)  $  4.3

 Year-over-year
  percentage change in
  Adjusted EBITDA           (4%)      15%        49%       3%       1%
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
                                                             September
                       Three                                  30, 2008
                      Months                                  Before
                       Ended                                  Special
                     September                   Gain on       Items
                      30, 2008 Restructuring      Debt         (Non-
                      (GAAP)      Charges     Extinguishment   GAAP)
                     -------------------------------------------------
                                     A              B
 Revenue              $ 346.5   $         -   $           -   $ 346.5

 Costs and expenses
   Cost of services
    and products        154.8             -               -     154.8
   Selling, general
    and
    administrative       71.5             -               -      71.5
   Depreciation and
    amortization         38.7             -               -      38.7
   Restructuring
    charges               1.7          (1.7)              -         -
                     --------- ------------- --------------- ---------
       Operating
        income           79.8           1.7               -      81.5

 Interest expense        35.0             -               -      35.0
 Other income, net       (1.0)            -             0.9      (0.1)
                     --------- ------------- --------------- ---------

 Income before
  income taxes           45.8           1.7            (0.9)     46.6
 Income tax expense      19.2           0.7            (0.4)     19.5
                     --------- ------------- --------------- ---------

 Net income              26.6           1.0            (0.5)     27.1

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

 Net income
  applicable to
  common shareowners  $  24.0   $       1.0   $        (0.5)  $  24.5
                     ========= ============= =============== =========


 Weighted average
  diluted common
  shares                239.2         239.2           239.2     239.2
                     ========= ============= =============== =========

 Diluted earnings
  per common share    $  0.10   $      0.00   $        0.00   $  0.10
                     ========= ============= =============== =========


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

A Charge related to voluntary early retirement program for union and
   management employees.

B Gain on extinguishment of 8 3/8% Senior Subordinated Notes due 2014
   and 7 1/4% Senior Notes due 2013.
Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)
(Dollars in millions, except per share amounts)

                                      Special Items
                             -------------------------------
                                                               Nine
                                                              Months
                                                               Ended
                                                             September
                     Nine                                     30, 2008
                    Months                                    Before
                     Ended                         Gain on    Special
                   September Restruc-               Debt       Items
                    30, 2008  turing     Asset     Extingui-   (Non-
                    (GAAP)   Charges  Impairment    shment     GAAP)
                   ---------------------------------------------------
                                A          B          C
 Revenue           $1,046.2   $    -  $        -   $      -  $1,046.2

 Costs and
  expenses
  Cost of services
   and products       473.6        -           -          -     473.6
  Selling, general
   and
   administrative     213.8        -           -          -     213.8
  Depreciation and
   amortization       113.7        -           -          -     113.7
  Restructuring
   charges             27.1    (27.1)          -          -         -
  Asset impairment      1.2        -        (1.2)         -         -
                   --------- -------- ----------- ---------- ---------
      Operating
       income         216.8     27.1         1.2          -     245.1

 Interest expense     106.1        -           -          -     106.1
 Other income, net     (2.4)       -           -        2.2      (0.2)
                   --------- -------- ----------- ---------- ---------

 Income before
  income taxes        113.1     27.1         1.2       (2.2)    139.2
 Income tax
  expense              48.0     10.8         0.5       (0.9)     58.4
                   --------- -------- ----------- ---------- ---------

 Net income            65.1     16.3         0.7       (1.3)     80.8

 Preferred stock
  dividends             7.8        -           -          -       7.8
                   --------- -------- ----------- ---------- ---------

 Net income
  applicable to
  common
  shareowners      $   57.3   $ 16.3  $      0.7   $   (1.3)     73.0
                   ========= ======== =========== ========== =========


 Weighted average
  diluted common
  shares              247.0    247.0       247.0      247.0     247.0
                   ========= ======== =========== ========== =========

 Diluted earnings
  per common share $   0.23   $ 0.07  $     0.00   $   0.00  $   0.30
                   ========= ======== =========== ========== =========


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

A Charge related to voluntary early retirement program for union and
   management employees.

B Asset impairment charge for discontinued software.

C Gain on extinguishment of 8 3/8% Senior Subordinated Notes due 2014
   and 7 1/4% Senior Notes due 2013.
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
                            Three                   September 30, 2007
                        Months Ended  Restructuring  Before Special
                        September 30,   Charges            Items
                         2007 (GAAP)     (gains)        (Non-GAAP)
                        ----------------------------------------------
                                            A
 Revenue                   $   344.3    $      -       $         344.3

 Costs and expenses
  Cost of services and
   products                    159.0           -                 159.0
  Selling, general and
   administrative               65.3           -                  65.3
  Depreciation and
   amortization                 37.7           -                  37.7
  Restructuring charges
   (gains)                      (0.3)        0.3                     -
                        ------------- ------------- ------------------
      Operating income          82.6        (0.3)                 82.3

 Interest expense               38.0           -                  38.0
 Other expense, net              0.2           -                   0.2
                        ------------- ------------- ------------------

 Income before income
  taxes                         44.4        (0.3)                 44.1
 Income tax expense             18.7        (0.1)                 18.6
                        ------------- ------------- ------------------

 Net income                     25.7        (0.2)                 25.5

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

 Net income applicable
  to common shareowners    $    23.1    $   (0.2)      $          22.9
                        ============= ============= ==================


 Weighted average
  diluted common shares        257.2       257.2                 257.2
                        ============= ============= ==================

 Diluted earnings per
  common share             $    0.09    $   0.00       $          0.09
                        ============= ============= ==================


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

A Adjustment to the company's restructuring reserve.
Cincinnati Bell Inc.
Normalized Statements of Operations (Non-GAAP) - Reconciliation to
 Reported Results
(Unaudited)

(Dollars in millions, except per share amounts)
                                         Special Items
                                    ------------------------
                                                               Nine
                                                              Months
                                                               Ended
                            Nine                             September
                           Months                             30, 2007
                            Ended                             Before
                          September                           Special
                             30,                  Dividend     Items
                            2007    Restructuring    From      (Non-
                            (GAAP)     Charges    Investment   GAAP)
                          --------------------------------------------
                                          A           B
 Revenue                   $ 988.6   $         -  $       -  $  988.6

 Costs and expenses
  Cost of services and
   products                  437.5             -          -     437.5
  Selling, general and
   administrative            196.6             -          -     196.6
  Depreciation and
   amortization              110.8             -          -     110.8
  Restructuring charges        2.3          (2.3)         -         -
                          --------- ------------- ---------- ---------
      Operating income       241.4           2.3          -     243.7

 Interest expense            117.1             -          -     117.1
 Other income, net            (2.1)            -        1.9      (0.2)
                          --------- ------------- ---------- ---------

 Income before income
  taxes                      126.4           2.3       (1.9)    126.8
 Income tax expense           54.0           1.0       (0.8)     54.2
                          --------- ------------- ---------- ---------

 Net income                   72.4           1.3       (1.1)     72.6

 Preferred stock dividends     7.8             -          -       7.8
                          --------- ------------- ---------- ---------

 Net income applicable to
  common shareowners       $  64.6   $       1.3  $    (1.1) $   64.8
                          ========= ============= ========== =========


 Weighted average diluted
  common shares              256.6         256.6      256.6     256.6
                          ========= ============= ========== =========

 Diluted earnings per
  common share             $  0.25   $      0.01  $   (0.01) $   0.25
                          ========= ============= ========== =========


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



         2008 Operating Income (GAAP) Guidance            $    297

         Add:
            Depreciation and amortization                      153
            Restructuring charges                              29
            Asset impairment                                    1
                                                          ------------

         2008 Adjusted EBITDA Guidance                    $    480
                                                          ============

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

SOURCE: Cincinnati Bell Inc.