PR Archives:  LatestBy Company By Date


Press Release -- August 11th, 2019
Source: Cincinnati Bell
Tags:

Cincinnati Bell Reports Second Quarter 2019 Results

Cincinnati Bell – News

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, news, filings), 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

PR Archives: Latest, By Company, By Date