Cincinnati Bell reports record first-quarter earnings.CINCINNATI--(BUSINESS WIRE)--April 16, 1996--Cincinnati Bell Inc. (NYSE NYSE See: New York Stock Exchange :CSN CSN Crosby, Stills, and Nash (band) CSN Centrala studiestödsnämnden (Swedish: state education grant and loan program) CSN Confédération des Syndicats Nationaux (French) ) said today that its first quarter net income, excluding special items, increased 47 percent to $38.2 million, or 57 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . The company said that its revenues increased 9 percent to $362.1 million from $331.8 million in the first quarter of 1995. Revenues, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and net income were the highest in Cincinnati Bell's history, and represented strong performances by its major businesses, especially Cincinnati Bell Cincinnati Bell is the dominant telephone company for Cincinnati, Ohio and its nearby suburbs in Ohio, Indiana and Kentucky. The parent company is named Cincinnati Bell Inc. Information Systems (CBIS CBIS Computer Based Information System CBIS Christian Brothers Investment Services CBIS Cincinnati Bell Information Systems CBIS Chinese Biodiversity Information System CBIS Certified Brain Injury Specialist ). "As we indicated last month, our core businesses are performing at levels well above where we were a year ago," President and Chief Executive Officer John T. LaMacchia said. "We expect a good year in 1996." The company said that its operating income before special items increased 24 percent to $67.1 million from $54.1 million. Including special items, operating income was $72.6 million, compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $80.4 million in the first quarter of 1995. Cincinnati Bell recorded $132 million of special charges in the first quarter of 1995 for retirement incentives offered principally to employees at Cincinnati Bell Telephone, and for other costs the telephone company will incur over the next two years to streamline and redesign its business processes. First-quarter results last year also included a charge of $2.5 million to operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. for certain software development projects in process at X International when CBIS acquired that business. These charges resulted in a net loss for the first quarter of 1995 of $59.6 million, or 90 cents a share. Excluding both charges, net income for the first quarter was $26 million, or 39 cents a share. In the first quarter of 1996, Cincinnati Bell recorded pension settlement gains resulting from lump-sum distributions to employees who are retiring under the incentive offers. Those gains increased first-quarter operating income by $5.5 million, and net income by $3.5 million, or 5 cents a share. Cincinnati Bell's net income for the first quarter including those gains was $41.7 million, or 62 cents per share. Those gains are expected to continue into 1997 as more employees retire. More than half of the 1,300 Cincinnati Bell employees who accepted voluntary retirement incentive offers in 1995 have retired. The remainder will leave by April 1997. First-quarter net income also increased because Cincinnati Bell restructured its debt last year, which reduced interest expense, and because results from the company's cellular partnership with Ameritech have improved. Cincinnati Bell Telephone's revenues for the first quarter were $158.8 million, up 4 percent from the first quarter of 1995. Cincinnati Bell Telephone's operating income, excluding special items, increased 18 percent to $32.9 million. That growth reflects strong growth in access lines, which increased at an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate of approximately 5 percent during the first quarter. Some of that growth is associated with the company's successful launch of its Fuse Internet access See how to access the Internet. service during the quarter, which included a promotional offer for additional access lines. CBIS's revenues increased 19 percent to $106.9 million, and its operating income increased 70 percent to $17.5 million. CBIS's revenue growth continues to reflect strong growth in its core wireless market, as well as increasing contributions from wireline telecommunications companies and cable television providers. CBIS's operating income reflects the benefits of profitable growth as well as improved results from international activities. During the quarter, CBIS signed major agreements for billing and customer care services with two companies, PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. PrimeCo and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Wireless Inc. These companies are expected to be among the leaders in providing Personal Communications Services See PCS. (PCS) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . CBIS also signed an agreement with AT&T to support nationwide its planned entry into the local telecommunications services market. CBIS will provide data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a services as well as consulting and software development services to AT&T under the agreement. The benefit to CBIS from these agreements could be substantial. That benefit will depend on many factors, including the clients' ability to attract and retain customers under highly competitive market conditions, regulation, and CBIS's ability to achieve or exceed specified performance objectives. It is unlikely these contracts will result in significant revenue or operating income gains until 1998. MATRIXX Marketing's revenues increased 10 percent to $77.4 million and its operating income increased 20 percent to $9.6 million. MATRIXX Marketing's revenues are expected to grow more quickly during the rest of the year as a result of the more aggressive marketing plans of its major clients. MATRIXX Marketing's operating income grew because of stronger margins in both its domestic and international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. . Cincinnati Bell Long Distance and Cincinnati Bell Directory also had good growth in revenues and operating income for the quarter. Cincinnati Bell is the global leader in helping communications companies achieve a competitive advantage through advanced billing, customer information and telephone marketing solutions, as well as the premier provider of communications services in Greater Cincinnati. -0-
CINCINNATI BELL INC.
Revenues, Net Income and Earnings Per Common Share
In Millions, Except Per Share Amounts
(Unaudited)
For the Three Months Ended March 31,
Change %
1996 1995 Amount Change
Revenues $362.1 $331.8 $30.3 9.1 Net Income (Loss) $41.7(a) ($59.6)(b) ($101.3) -- Earnings (Loss) Per Common Share $0.62(a) ($0.90)(b) $1.52 -- Weighted Average Number of Common Shares Outstanding(000) 66,872 66,046 826 1.3
(a) Includes $5.5 million in special charges, which increased net
income by $3.5 million or $0.05 per common share.
(b) Includes $132 million of special charges, which reduced net
income by $84.1 million, or $1.27 per common share.
CONTACT: Cincinnati Bell Inc., Cincinnati Wayne Buckhout, 513/397-1081 |
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