Cincinnati Bell Inc. Reports Operating Results (10-Q)
Cincinnati Bell Inc. has a market cap of $601.29 million; its shares were traded at around $2.99 with a P/E ratio of 6.8 and P/S ratio of 0.45. Cincinnati Bell Inc. had an annual average earning growth of 2% over the past 5 years.CBB is in the portfolios of Charles Brandes of Brandes Investment, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations: Consolidated revenue totaled $338.6 million for the second quarter of 2010, an increase of $11.0 million compared to the second quarter of 2009. The increase was primarily due to the following:
For the six months ended June 30, 2010, consolidated revenue increased $9.2 million to $662.3 million in comparison to $653.1 million for the same period in 2009. The increase was primarily due to the following:
Interest expense was $42.4 million for the second quarter of 2010 and $79.5 million for the six months ended June 30, 2010 as compared to $31.3 million for the second quarter of 2009 and $63.1 million for the six months ended June 30, 2009. The increase compared to last year is primarily attributable to higher debt balances.
Income tax expense for the three months ended June 30, 2010 was $7.2 million compared to $17.7 million for the second quarter of 2009. The decrease is due to lower pre-tax income and a $7 million tax benefit associated with a change in valuation allowance on state deferred tax assets that are expected to be utilized as a result of the CyrusOne acquisition. These decreases were partially offset by a $5 million charge related to tax matters associated with the refinancing of the 8 3/8% Notes and other adjustments to projected income. Income tax expense for the six months ended June 30, 2010 was $29.8 million as compared to $37.4 million for the same period in 2009. This decrease is due to the factors discussed above and, in addition, a $4 million charge from the first quarter of 2010 related to a tax law change that now requires the application of federal income taxes against the retiree Medicare drug subsidy received by the Company.
Cost of services and products increased by $0.9 million and $2.5 million for the three and six months ended June 30, 2010 as compared to the corresponding periods in 2009. The increase in the second quarter was primarily driven by higher network costs of $2.7 million to support growth in VoIP and Fioptics revenues partially offset by lower payroll costs of $1.2 million and a decrease in costs from third party service providers. The increase in the six months ended June 30, 2010 was primarily due to $5.3 million in higher network costs and $1.2 million in higher operating taxes, partially offset by lower benefit costs of $2.4 million and lower wages due to the Companys restructuring activities.
Selling, general and administrative expenses decreased by $1.1 million and $5.0 million for the three and six months ended June 30, 2010, respectively, versus the comparable periods in 2009. The decrease for the three months ended June 30, 2010 primarily consists of a $0.9 million decrease in bad debt expense. The decrease for the six months ended June 30, 2010 was primarily due to a $2.0 million decrease in payroll costs, a $1.6 million decrease in bad debt expense, a $0.7 million decrease in costs from third party service providers and lower commission expenses.
Read the The complete Report