cbb-8k_20190630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report: August 8, 2019

 

 

 

CINCINNATI BELL INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Ohio

 

001-8519

 

31-1056105

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

221 East Fourth Street

 

Cincinnati, OH 45202

(Address of Principal Executive Office)

Registrant's telephone number, including area code: (513) 397-9900

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. 

 

Securities Registered Pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Common Shares ($0.01 par value)

 

CBB

 

New York Stock Exchange

Depositary Shares, each representing 1/20 interest in a Share of 6 ¾% Cumulative Convertible Preferred Stock, without par value

 

CBB.PB

 

New York Stock Exchange

 

 


 

Section 2 - Financial Information

Item 2.02     Results of Operations and Financial Condition

On August 8, 2019, Cincinnati Bell Inc. reported its financial results for the second quarter 2019. The earnings release is attached as Exhibit 99.1.

 

Section 7 - Regulation FD

 

Item 7.01     Regulation FD Disclosure

On August 8, 2019, Leigh R. Fox, the Company's president and chief executive officer, and Andrew R. Kaiser, the Company's chief financial officer, will present second quarter 2019 results. The presentation will be webcast both live and on-demand. To listen, go to the Investor Relations section of www.cincinnatibell.com, click on the Webcasts/Presentations tab and follow the instructions for accessing the webcast.

A copy of the presentation to be made during the meeting is attached to this Current Report as Exhibit 99.2.

The information in Items 2.02 and 7.01 and the exhibits attached to this Current Report as Exhibits 99.1 and 99.2 are being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934 or otherwise subject to the liabilities of that Section nor shall they be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Act of 1934, except as shall be expressly stated by specific reference in such filing.

 

Item 9.01      Financial Statements and Exhibits.

 

(d)

Exhibit No.

Description  

 

 

  

 

Exhibit 99.1

Press release dated August 8, 2019

 

 

 

 

Exhibit 99.2

Presentation made during the Cincinnati Bell second quarter 2019 earnings conference call on August 8, 2019

 

 

 

 


 

Cautionary Statement Concerning Forward-Looking Statements

 

This report and the documents incorporated by reference herein contain forward-looking statements regarding future events and results that are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” or variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of future financial performance, anticipated growth and trends in businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this release and those discussed in other documents the company filed with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including Cincinnati Bell's Form 10-K report, Form 10-Q reports and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements for any reason. The forward-looking statements included in this report represent company estimates as of August 8, 2019. Cincinnati Bell anticipates that subsequent events and developments will cause its estimates to change.

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

 

 

 

CINCINNATI BELL INC.

 

 

 

 

Date:   August 8, 2019

By:

/s/ Christopher J. Wilson

 

 

 

Christopher J. Wilson

 

 

 

Vice President and General Counsel

 

 


 

EXHIBIT INDEX

 

Exhibit No.

Description

 

 

99.1

Press release dated August 8, 2019.

 

 

99.2

Presentation made during the Cincinnati Bell second quarter 2019 earnings conference call on August 8, 2019.

 

 

 

 

cbb-ex991_8.htm

Cincinnati Bell Reports Second Quarter 2019 Results

 

HIGHLIGHTS

 

Revenue of $384 million and operating income totaling $25 million

 

Adjusted EBITDA1 of $103 million, up 6% compared to the prior quarter

 

Entertainment and Communications’ Cincinnati revenue totaled $172 million, generating Adjusted EBITDA of $68 million, up 3% year-over-year and 4% sequentially

 

Fiber-to-the-premise (“FTTP”) internet net activations totaled 3,200 in Cincinnati and 1,000 in Hawaii during the quarter

 

Hawaiian Telcom revenue of $88 million generated Adjusted EBITDA of $25 million, an increase of 4% sequentially

 

IT Services and Hardware Adjusted EBITDA was $13 million, up 28% sequentially

 

Cash provided by operating activities totaled $119 million year-to-date, and free cash flow2 of $18 million year-to-date

 

CINCINNATI – August 8, 2019 - Cincinnati Bell Inc. (NYSE:CBB), today announced financial results for the second quarter of 2019.

Leigh Fox, President and Chief Executive Officer of Cincinnati Bell, commented, "I am excited about the company’s performance this quarter, particularly with Adjusted EBITDA growing 6% sequentially. It has been one year since we acquired Hawaiian Telcom, and that business remains on target to grow 5% to 10% annually.”

Mr. Fox continued, “The Telecom sector is facing unprecedented challenges. Our early decision to invest in fiber and IT services continues to produce impressive results, which we believe significantly differentiates Cincinnati Bell from its traditional RLEC peers. We have a strong capital structure and appropriate liquidity to execute on our strategic objectives, delivering long-term value for our stakeholders.”



Consolidated Results

 

Consolidated revenue totaled $384 million in the second quarter of 2019 and $764 million year-to-date

 

Operating income was $25 million in the second quarter of 2019 and $35 million year-to-date

 

Adjusted EBITDA of $103 million in the second quarter of 2019 and $201 million year-to-date

 

Net loss totaled $6 million in the second quarter of 2019 and $32 million in the first half of 2019

Entertainment and Communications Segment

Entertainment and Communications revenue totaled $251 million for the second quarter of 2019, consistent with the prior quarter

 

Cincinnati revenue totaled $172 million in the second quarter

 

Fioptics revenue totaled $89 million, up 5% compared to a year ago

 

Fioptics internet subscribers totaled 244,800, up 9,500 year-over-year

 

Fioptics video subscribers totaled 138,000, down 7,100 year-over-year

 

Fioptics is available to approximately 75% of Greater Cincinnati, which includes a combination of fiber-to-the-premise ("FTTP") and fiber-to-the-node ("FTTN") addresses

 

In the first half of 2019, 7,800 additional homes and businesses were passed with FTTP, which is available to 480,100 addresses or approximately 60% of Cincinnati's total addressable market

 

Hawaii revenue totaled $79 million in the second quarter of 2019

 

Consumer / SMB Fiber revenue totaled $22 million, consistent with the prior quarter

 

Consumer / SMB Fiber internet subscribers totaled 67,100, adding 500 new customers during the quarter

 

Video subscribers were 46,900, down 900 from the first quarter of 2019

 

Consumer / SMB Fiber is available to approximately 50% of Hawaii, which includes a combination of FTTP and FTTN addresses


 

During the first half of 2019, 2,200 additional homes and businesses were passed with FTTP, which is available to 169,200 addresses, approximately 35% of Hawaii's total addressable market

Adjusted EBITDA was $93 million in the second quarter of 2019, up 3% sequentially

IT Services and Hardware Segment

IT Services and Hardware revenue totaled $140 million for the second quarter of 2019, up $12 million year-over-year

 

Consulting revenue totaled $38 million for the second quarter, up $5 million year-over-year

 

Cloud revenue of $23 million was consistent with the prior year despite insourcing initiatives from the General Electric Company (“GE”)

 

Certain cloud revenue from GE totaled $1 million in the second quarter of 2019; compared to the second quarter of 2018, in which certain cloud revenue from GE totaled $7 million, resulting in Adjusted EBITDA of $5 million

 

Communications revenue was $48 million, up $7 million year-over-year

 

Infrastructure Solutions revenue totaled $31 million, up $1 million from a year ago

Adjusted EBITDA of $13 million for the second quarter of 2019, down $2 million year-over-year

Cash Flow and Financial Position

Operating cash flows totaled $119 million year-to-date with free cash flow totaling $18 million year-to-date

Liquidity of $163 million as of June 30, 2019, with no significant maturities until 2024

Capital expenditures were $111 million year-to-date

Gross NOL carryforward of approximately $760 million as of June 30, 2019



2019 Outlook

Cincinnati Bell is reaffirming the following guidance for 2019 as initially provided on February 14, 2019:

Category

2019

Guidance Range

Revenue

$1,515M - $1,575M

 

 

Adjusted EBITDA

$400M - $410M

 

 

 

Conference Call/Webcast

Cincinnati Bell will host a conference call on Thursday, August 8, 2019 at 9:00 a.m. (ET) to discuss its financial results for the second quarter of 2019. A live webcast of the call will be available via the Investor Relations section of www.cincinnatibell.com. Callers can dial toll-free (800) 458-4148 or toll (929) 477-0324. A taped replay of the conference call will be available starting at 12:00 p.m. (ET) on Thursday, August 8, 2019 until 12:00 p.m. (ET) on Thursday, August 22, 2019. To access the telephone replay, please dial toll-free (888) 203-1112 or toll (719) 457-0820, and then enter the conference ID number 6277355. An archived webcast will be available for replay following the conclusion of the live event in the Investor Relations section of www.cincinnatibell.com.

 

INVESTOR RELATIONS CONTACT:

Kei Lawson, 513-565-0510

E-mail: Takeitha.Lawson@cinbell.com

 

or

 

MEDIA CONTACT:

Josh Pichler, 513-565-0310

E-mail: Josh.Pichler@cinbell.com


Safe Harbor Note

This release may contain “forward-looking” statements, as defined in federal securities laws including the Private Securities Litigation Reform Act of 1995, which are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those expressed in any forward-looking statements. The following important factors, among other things, could cause or contribute to actual results being materially and adversely different from those described or implied by such forward-looking statements including, but not limited to: those discussed in this release; we operate in highly competitive industries, and customers may not continue to purchase products or services, which would result in reduced revenue and loss of market share; we may be unable to grow our revenues and cash flows despite the initiatives we have implemented; failure to anticipate the need for and introduce new products and services or to compete with new technologies may compromise our success in the telecommunications industry; our access lines, which generate a significant portion of our cash flows and profits, are decreasing in number and if we continue to experience access line losses similar to the past several years, our revenues, earnings and cash flows from operations may be adversely impacted; our failure to meet performance standards under our agreements could result in customers terminating their relationships with us or customers being entitled to receive financial compensation, which would lead to reduced revenues and/or increased costs; we generate a substantial portion of our revenue by serving a limited geographic area; a large customer accounts for a significant portion of our revenues and accounts receivable and the loss or significant reduction in business from this customer would cause operating revenues to decline and could negatively impact profitability and cash flows; maintaining our telecommunications networks requires significant capital expenditures, and our inability or failure to maintain our telecommunications networks could have a material impact on our market share and ability to generate revenue; increases in broadband usage may cause network capacity limitations, resulting in service disruptions or reduced capacity for customers; we may be liable for material that content providers distribute on our networks; cyber attacks or other breaches of network or other information technology security could have an adverse effect on our business; natural disasters, terrorists acts or acts of war could cause damage to our


infrastructure and result in significant disruptions to our operations; the regulation of our businesses by federal and state authorities may, among other things, place us at a competitive disadvantage, restrict our ability to price our products and services and threaten our operating licenses; we depend on a number of third party providers, and the loss of, or problems with, one or more of these providers may impede our growth or cause us to lose customers; a failure of back-office information technology systems could adversely affect our results of operations and financial condition; if we fail to extend or renegotiate our collective bargaining agreements with our labor union when they expire or if our unionized employees were to engage in a strike or other work stoppage, our business and operating results could be materially harmed; the loss of any of the senior management team or attrition among key sales associates could adversely affect our business, financial condition, results of operations and cash flows; our debt could limit our ability to fund operations, raise additional capital, and fulfill our obligations, which, in turn, would have a material adverse effect on our businesses and prospects generally; our indebtedness imposes significant restrictions on us; we depend on our loans and credit facilities to provide for our short-term financing requirements in excess of amounts generated by operations, and the availability of those funds may be reduced or limited; the servicing of our indebtedness is dependent on our ability to generate cash, which could be impacted by many factors beyond our control; we depend on the receipt of dividends or other intercompany transfers from our subsidiaries and investments; the trading price of our common shares may be volatile, and the value of an investment in our common shares may decline; the uncertain economic environment, including uncertainty in the U.S. and world securities markets, could impact our business and financial condition; our future cash flows could be adversely affected if we are unable to fully realize our deferred tax assets; adverse changes in the value of assets or obligations associated with our employee benefit plans could negatively impact shareowners’ deficit and liquidity; third parties may claim that we are infringing upon their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products; third parties may infringe upon our intellectual property, and we may expend significant resources enforcing our rights or suffer competitive injury; we could be subject to a significant amount of litigation, which could require us to pay significant damages or settlements; we could incur significant costs resulting from complying with, or potential violations of, environmental, health and human safety laws; the possibility that the expected synergies and


value creation from our acquisition of Hawaiian Telcom will not be realized or will not be realized within the expected time period; the risk that the businesses of the Company and Hawaiian Telcom will not be integrated successfully; the risk that unexpected costs will be incurred; and the other risks and uncertainties detailed in our filings with the SEC, including our Form 10-K report, Form 10-Q reports and Form 8-K reports.

These forward-looking statements are based on information, plans and estimates as of the date hereof and there may be other factors that may cause our actual results to differ materially from these forward-looking statements. We assume no obligation to update the information contained in this release except as required by applicable law.

Use of Non-GAAP Financial Measures

This press release contains information about adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), Adjusted EBITDA margin, net debt, net income (loss) applicable to common shareholders excluding special items and free cash flow. These are non-GAAP financial measures used by Cincinnati Bell management when evaluating results of operations and cash flow. Management believes these measures also provide users of the financial statements with additional and useful comparisons of current results of operations and cash flows with past and future periods. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures. Detailed reconciliations of these non-GAAP financial measures to comparable GAAP financial measures have been included in the tables distributed with this release and are available in the Investor Relations section of www.cincinnatibell.com.

1Adjusted EBITDA provides a useful measure of operational performance. The company defines Adjusted EBITDA as GAAP operating income plus depreciation, amortization, stock based compensation, restructuring and severance related charges, (gain) loss on sale or disposal of assets, transaction and integration costs, asset impairments, and other special items. Adjusted EBITDA should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with the measure as defined by other companies.



Adjusted EBITDA margin provides a useful measure of operational performance. The company defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with the measure as defined by other companies.

2Free cash flow provides a useful measure of operational performance, liquidity and financial health. The company defines free cash flow as cash provided by (used in) operating activities, adjusted for restructuring and severance related payments, transaction and integration payments, less capital expenditures and preferred stock dividends. Free cash flow should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities, or the change in cash on the balance sheet and may not be comparable with free cash flow as defined by other companies. Although the company believes there is no comparable GAAP measure for free cash flow, the attached financial information reconciles cash provided by operating activities to free cash flow.

Net debt provides a useful measure of liquidity and financial health. The company defines net debt as the sum of the face amount of short-term and long-term debt, unamortized premium and/or discount and unamortized note issuance costs, offset by cash and cash equivalents.

Net income (loss) applicable to common shareholders excluding special items in total and per share provides a useful measure of operating performance. Net income (loss) applicable to common shareholders excluding special items should not be considered as an alternative to comparable GAAP measures of profitability and may not be comparable with net income (loss) excluding special items as defined by other companies.



About Cincinnati Bell Inc.

With headquarters in Cincinnati, Ohio, Cincinnati Bell Inc. (NYSE: CBB) delivers integrated communications solutions to residential and business customers over its fiber-optic and copper networks including high-speed internet, video, voice and data.  Cincinnati Bell provides service in areas of Ohio, Kentucky, Indiana and Hawaii. In addition, enterprise customers across the United States and Canada rely on CBTS and OnX, wholly-owned subsidiaries, for efficient, scalable office communications systems and end-to-end IT solutions. For more information, please visit www.cincinnatibell.com. The information on the Company’s website is not incorporated by reference in this press release.



Cincinnati Bell Inc.

Consolidated Statements of Operations

(Unaudited)

(Dollars in millions, except per share amounts)

 

 

Three Months Ended June 30,

 

 

Change

 

 

Six Months Ended June 30,

 

 

Change

 

 

 

2019

 

 

2018

 

 

$

 

 

%

 

 

2019

 

 

2018

 

 

$

 

 

%

 

Revenue

 

$

384.2

 

 

$

296.8

 

 

$

87.4

 

 

 

29

%

 

$

763.8

 

 

$

592.5

 

 

$

171.3

 

 

 

29

%

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services and products

 

 

195.5

 

 

 

152.3

 

 

 

43.2

 

 

 

28

%

 

 

393.2

 

 

 

301.7

 

 

 

91.5

 

 

 

30

%

Selling, general and administrative

 

 

87.2

 

 

 

66.1

 

 

 

21.1

 

 

 

32

%

 

 

173.3

 

 

 

134.5

 

 

 

38.8

 

 

 

29

%

Depreciation and amortization

 

 

74.2

 

 

 

50.9

 

 

 

23.3

 

 

 

46

%

 

 

153.6

 

 

 

102.1

 

 

 

51.5

 

 

 

50

%

Restructuring and severance related charges

 

 

1.8

 

 

 

4.6

 

 

 

(2.8

)

 

 

(61

)%

 

 

5.1

 

 

 

4.9

 

 

 

0.2

 

 

 

4

%

Transaction and integration costs

 

 

0.6

 

 

 

2.7

 

 

 

(2.1

)

 

 

(78

)%

 

 

3.6

 

 

 

4.9

 

 

 

(1.3

)

 

 

(27

)%

Operating income

 

 

24.9

 

 

 

20.2

 

 

 

4.7

 

 

 

23

%

 

 

35.0

 

 

 

44.4

 

 

 

(9.4

)

 

 

(21

)%

Interest expense

 

 

34.9

 

 

 

31.8

 

 

 

3.1

 

 

 

10

%

 

 

70.0

 

 

 

62.6

 

 

 

7.4

 

 

 

12

%

Loss on extinguishment of debt

 

 

-

 

 

 

1.3

 

 

 

(1.3

)

 

n/m

 

 

 

-

 

 

 

1.3

 

 

 

(1.3

)

 

n/m

 

Other components of pension and postretirement benefit plans expense

 

 

3.0

 

 

 

3.2

 

 

 

(0.2

)

 

 

(6

)%

 

 

5.6

 

 

 

6.5

 

 

 

(0.9

)

 

 

(14

)%

Other expense (income), net

 

 

0.1

 

 

 

(0.8

)

 

 

0.9

 

 

n/m

 

 

 

(0.9

)

 

 

(1.2

)

 

 

0.3

 

 

 

(25

)%

Loss before income taxes

 

 

(13.1

)

 

 

(15.3

)

 

 

2.2

 

 

 

(14

)%

 

 

(39.7

)

 

 

(24.8

)

 

 

(14.9

)

 

 

60

%

Income tax benefit

 

 

(7.6

)

 

 

(1.5

)

 

 

(6.1

)

 

n/m

 

 

 

(7.3

)

 

 

(2.7

)

 

 

(4.6

)

 

n/m

 

Net loss

 

 

(5.5

)

 

 

(13.8

)

 

 

8.3

 

 

 

(60

)%

 

 

(32.4

)

 

 

(22.1

)

 

 

(10.3

)

 

 

47

%

Preferred stock dividends

 

 

2.6

 

 

 

2.6

 

 

 

-

 

 

 

-

 

 

 

5.2

 

 

 

5.2

 

 

 

-

 

 

 

-

 

Net loss applicable to common shareowners

 

$

(8.1

)

 

$

(16.4

)

 

$

8.3

 

 

 

(51

)%

 

$

(37.6

)

 

$

(27.3

)

 

$

(10.3

)

 

 

38

%

Basic and diluted net loss per common share

 

$

(0.16

)

 

$

(0.39

)

 

 

 

 

 

 

 

 

 

$

(0.75

)

 

$

(0.64

)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

50.4

 

 

 

42.4

 

 

 

 

 

 

 

 

 

 

 

50.3

 

 

 

42.4

 

 

 

 

 

 

 

 

 

- Diluted

 

 

50.4

 

 

 

42.4

 

 

 

 

 

 

 

 

 

 

 

50.3

 

 

 

42.4

 

 

 

 

 

 

 

 

 


Cincinnati Bell Inc.

Entertainment and Communications Income Statement

(Unaudited)

(Dollars in millions)

 

  

 

Three Months Ended June 30,

 

 

Change

 

 

Six Months Ended June 30,

 

 

Change

 

 

 

2019

 

 

2018

 

 

$

 

 

%

 

 

2019

 

 

2018

 

 

$

 

 

%

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

250.5

 

 

$

173.9

 

 

$

76.6

 

 

 

44

%

 

$

500.8

 

 

$

348.1

 

 

$

152.7

 

 

 

44

%

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services and products

 

 

112.0

 

 

 

78.4

 

 

 

33.6

 

 

 

43

%

 

 

227.3

 

 

 

156.0

 

 

 

71.3

 

 

 

46

%

Selling, general and administrative

 

 

45.2

 

 

 

29.0

 

 

 

16.2

 

 

 

56

%

 

 

89.7

 

 

 

56.1

 

 

 

33.6

 

 

 

60

%

Depreciation and amortization

 

 

63.4

 

 

 

41.0

 

 

 

22.4

 

 

 

55

%

 

 

126.1

 

 

 

81.9

 

 

 

44.2

 

 

 

54

%

Restructuring and severance related charges

 

 

0.9

 

 

 

-

 

 

 

0.9

 

 

n/m

 

 

 

4.2

 

 

 

-

 

 

 

4.2

 

 

n/m

 

Total operating costs and expenses

 

 

221.5

 

 

 

148.4

 

 

 

73.1

 

 

 

49

%

 

 

447.3

 

 

 

294.0

 

 

 

153.3

 

 

 

52

%

Operating income

 

$

29.0

 

 

$

25.5

 

 

$

3.5

 

 

 

14

%

 

$

53.5

 

 

$

54.1

 

 

$

(0.6

)

 

 

(1

)%

 



Cincinnati Bell Inc.

Entertainment and Communications Revenue

(Unaudited)

(Dollars in millions)

  

 

Three Months Ended

 

 

Three Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

 

 

Cincinnati

 

 

Hawaii

 

 

Total

 

 

Cincinnati

 

 

Hawaii

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer / SMB Fiber *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

$

38.8

 

 

$

7.9

 

 

$

46.7

 

 

$

35.6

 

 

$

-

 

 

$

35.6

 

Video

 

 

40.6

 

 

 

11.0

 

 

 

51.6

 

 

 

39.7

 

 

 

-

 

 

 

39.7

 

Voice

 

 

9.2

 

 

 

2.7

 

 

 

11.9

 

 

 

9.5

 

 

 

-

 

 

 

9.5

 

Other

 

 

0.4

 

 

 

0.1

 

 

 

0.5

 

 

 

0.3

 

 

 

-

 

 

 

0.3

 

Total Consumer / SMB Fiber

 

 

89.0

 

 

 

21.7

 

 

 

110.7

 

 

 

85.1

 

 

 

-

 

 

 

85.1

 

Enterprise Fiber

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

 

21.1

 

 

 

10.2

 

 

 

31.3

 

 

 

21.0

 

 

 

-

 

 

 

21.0

 

Legacy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

 

26.3

 

 

 

15.2

 

 

 

41.5

 

 

 

27.8

 

 

 

-

 

 

 

27.8

 

Voice

 

 

31.8

 

 

 

27.6

 

 

 

59.4

 

 

 

36.5

 

 

 

-

 

 

 

36.5

 

Other

 

 

3.5

 

 

 

4.1

 

 

 

7.6

 

 

 

3.5

 

 

 

-

 

 

 

3.5

 

Total Legacy

 

 

61.6

 

 

 

46.9

 

 

 

108.5

 

 

 

67.8

 

 

 

-

 

 

 

67.8

 

Total Entertainment & Communications

 

$

171.7

 

 

$

78.8

 

 

$

250.5

 

 

$

173.9

 

 

$

-

 

 

$

173.9

 

 

  

 

Six Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

 

 

Cincinnati

 

 

Hawaii

 

 

Total

 

 

Cincinnati

 

 

Hawaii

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer / SMB Fiber *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

$

76.2

 

 

$

15.8

 

 

$

92.0

 

 

$

70.0

 

 

$

-

 

 

$

70.0

 

Video

 

 

80.8

 

 

 

22.5

 

 

 

103.3

 

 

 

78.9

 

 

 

-

 

 

 

78.9

 

Voice

 

 

18.4

 

 

 

5.5

 

 

 

23.9

 

 

 

18.6

 

 

 

-

 

 

 

18.6

 

Other

 

 

0.7

 

 

 

0.3

 

 

 

1.0

 

 

 

0.6

 

 

 

-

 

 

 

0.6

 

Total Consumer / SMB Fiber

 

 

176.1

 

 

 

44.1

 

 

 

220.2

 

 

 

168.1

 

 

 

-

 

 

 

168.1

 

Enterprise Fiber

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

 

42.2

 

 

 

19.4

 

 

 

61.6

 

 

 

41.8

 

 

 

-

 

 

 

41.8

 

Legacy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

 

52.3

 

 

 

31.1

 

 

 

83.4

 

 

 

57.5

 

 

 

-

 

 

 

57.5

 

Voice

 

 

64.8

 

 

 

56.0

 

 

 

120.8

 

 

 

74.4

 

 

 

-

 

 

 

74.4

 

Other

 

 

7.0

 

 

 

7.8

 

 

 

14.8

 

 

 

6.3

 

 

 

-

 

 

 

6.3

 

Total Legacy

 

 

124.1

 

 

 

94.9

 

 

 

219.0

 

 

 

138.2

 

 

 

-

 

 

 

138.2

 

Total Entertainment & Communications

 

$

342.4

 

 

$

158.4

 

 

$

500.8

 

 

$

348.1

 

 

$

-

 

 

$

348.1

 

 

* Represents Fioptics in Cincinnati


Cincinnati Bell Inc.

Entertainment and Communications Metric Information

(Unaudited)

(In thousands)

 

  

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

 

2019

 

 

2019

 

 

2018

 

 

2018

 

 

2018

 

Cincinnati Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fioptics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet FTTP *

 

 

210.8

 

 

 

207.6

 

 

 

201.5

 

 

 

196.8

 

 

 

192.7

 

Internet FTTN *

 

 

34.0

 

 

 

35.7

 

 

 

37.5

 

 

 

39.8

 

 

 

42.6

 

Total Fioptics Internet

 

 

244.8

 

 

 

243.3

 

 

 

239.0

 

 

 

236.6

 

 

 

235.3

 

Video

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Video FTTP

 

 

114.5

 

 

 

115.2

 

 

 

115.0

 

 

 

115.6

 

 

 

118.1

 

Video FTTN

 

 

23.5

 

 

 

24.0

 

 

 

24.9

 

 

 

25.9

 

 

 

27.0

 

Total Fioptics Video

 

 

138.0

 

 

 

139.2

 

 

 

139.9

 

 

 

141.5

 

 

 

145.1

 

Voice

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fioptics Voice Lines

 

 

108.8

 

 

 

109.0

 

 

 

107.6

 

 

 

107.0

 

 

 

107.6

 

Fioptics Units Passed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units Passed FTTP

 

 

480.1

 

 

 

477.6

 

 

 

472.3

 

 

 

459.1

 

 

 

449.3

 

Units Passed FTTN

 

 

138.7

 

 

 

138.5

 

 

 

138.7

 

 

 

139.5

 

 

 

139.9

 

Total Fioptics Units Passed

 

 

618.8

 

 

 

616.1

 

 

 

611.0

 

 

 

598.6

 

 

 

589.2

 

Enterprise Fiber

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ethernet Bandwidth (Gb)

 

 

4,672

 

 

 

4,540

 

 

 

4,565

 

 

 

4,331

 

 

 

4,133

 

Legacy