CINCINNATI BELL RELEASES 1ST QTR FINANCIAL RESULTS.
Leigh Fox, President and Chief Executive Officer of Cincinnati Bell, commented, "Our solid first quarter performance reflects the continued execution of our strategy to expand our fiber network while advancing our digital-based products and services. The strength of our Fioptics suite of products and Enterprise Fiber network is evidence our strategy is working and further supports our ongoing investments in fiber densification.
Fox continued, In our IT services business, the integration of OnX is progressing well and we are confident we can leverage our extensive product portfolio and expanded footprint to tap into increased demand for strategic IT solutions across a diversified customer base.
Consolidated revenue totaled $296 million for the first quarter of 2018, up 18% from the prior year.
Operating income was $24 million in the first quarter of 2018, compared to a loss of $2 million in the prior year period. Adjusted EBITDA totaled $79 million for the first quarter of 2018, compared to $73 million in the prior year period.
Net loss for the first quarter of 2018 totaled $8 million, resulting in diluted loss per share of $0.26.
Entertainment and Communications Segment
~ Entertainment and Communications revenue of $174 million decreased $1 million year-over-year as growth in Fioptics and Enterprise Fiber partially offset Legacy revenue declines
- Fioptics revenue of $83 million, up $9 million year- over-year
- Enterprise Fiber revenue of $21 million, up $1 million year-over-year
~ Operating income of $29 million, up $26 million year- over-year
~ Adjusted EBITDA of $70 million, up $1 million year-over- year
The combination with Hawaiian Telcom represents an important step toward scaling Cincinnati Bell's network of high-quality fiber assets, having the capacity to meet the demands of the growing IoT ecosystem, and delivering on the promise of 5G. The pending merger recently received approval from the Hawaii Public Utilities Commission, and the regulatory review process is underway with the Federal Communications Commission. The Company continues to expect the transaction to close in the early second half of 2018.
IT Services and Hardware Segment
IT Services and Hardware revenue of $128 million, up $47 million year-over-year, reflecting a $45 million contribution from the OnX acquisition
- Consulting revenue of $38 million, up $21 million year-over-year
- Cloud revenue of $23 million, up $2 million year-over- year
- Communications revenue of $41 million, up $4 million year-over-year
- Infrastructure Solutions revenue of $26 million, up $19 million year-over-year
~ Operating income of $1 million, consistent with the prior year period
~ Adjusted EBITDA of $12 million, up $5 million year-over- year
The combination of CBTS and OnX supports the Company's transformation to a leading North American hybrid IT solutions provider, with an expanded footprint of 20+ IT sales offices and the addition of approximately 2,000 new customers throughout the United States and Canada. The combined company's hosted and managed IT services portfolio coupled with its enhanced scale enables Cincinnati Bell to capitalize on significant market opportunities in Unified Communications, Cloud, and Security services.
Operating cash flows totaled $59 million for the first quarter of 2018, compared to $54 million in the prior year. Free cash flow totaled $33 million for the first quarter of 2018, up from $10 million in the prior year. Capital expenditures were $33 million in the first quarter of 2018, compared to $55 million in the same period last year with the expectation that full year 2018 capital expenditures will be between $190 million and $210 million.
On April 5, 2018, Cincinnati Bell amended its Credit Agreement, including the Tranche B Term Loan and revolving facility, dated October 2, 2017, to reduce the LIBOR interest rate spread by 50 basis points from the previous 3.75% per annum to 3.25% per annum.
About Cincinnati Bell Inc.
With headquarters in Cincinnati, Ohio, Cincinnati Bell Inc. (NYSE:CBB) provides integrated communications solutions - including local and long distance Voice, Data, high-speed Internet and Video - that keep residential and business customers in Greater Cincinnati and Dayton connected with each other and with the world. 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, visit www.cincinnatibell.com or call 513/397-2292.
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|Article Type:||Financial report|
|Date:||Jun 1, 2018|
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