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Cincinnati Bell Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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Cincinnati Bell Inc. (CBB) filed Quarterly Report for the period ended 2010-09-30.

Cincinnati Bell Inc. has a market cap of $528.1 million; its shares were traded at around $2.62 with a P/E ratio of 6.72 and P/S ratio of 0.4. Cincinnati Bell Inc. had an annual average earning growth of 2% over the past 5 years.CBB is in the portfolios of Mario Gabelli of GAMCO Investors, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Consolidated revenue totaled $351.9 million for the third quarter of 2010, an increase of $14.2 million compared to the third quarter of 2009. The increase was primarily due to the following:

For the nine months ended September 30, 2010, consolidated revenue increased $23.4 million to $1,014.2 million in comparison to $990.8 million for the same period in 2009. The increase was primarily due to the following:

Interest expense was $52.0 million for the third quarter of 2010 and $131.5 million for the nine months ended September 30, 2010 as compared to $31.5 million for the third quarter of 2009 and $94.6 million for the nine months ended September 30, 2009. The increase compared to last year is primarily attributable to higher debt balances from financing required to fund the acquisition of CyrusOne and higher interest rates.

Income tax expense for the three months ended September 30, 2010 was $16.1 million compared to $21.7 million for the third quarter of 2009 due to lower pre-tax income offset by a higher effective tax rate. Income tax expense for the nine months ended September 30, 2010 was $45.9 million as compared to $59.1 million for the same period in 2009. This decrease is due to lower pretax 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 $6 million charge related to tax matters associated with the refinancing of the 8 3/8% Subordinated Notes and a $4 million charge 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.

Data revenue consists of data transport, DSL internet access, dial-up internet access, digital trunking, and local area network interconnection services. Data revenue decreased $1.1 million and $3.2 million for the three and nine months ended September 30, 2010 compared to the same periods a year ago, primarily due to lower DSL revenue resulting from a decline in average revenue per subscriber.

Long distance and VoIP revenue increased $2.8 million and $6.5 million for the three and nine months ended September 30, 2010 as compared to the same periods in 2009. The increase was primarily due to an increase in VoIP services due to additional subscribers.

Read the The complete Report

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