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

February 28, 2011 | About:
Gordon Pape

10qk

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Cincinnati Bell Inc. (CBB) filed Annual Report for the period ended 2010-12-31.

Cincinnati Bell Inc. has a market cap of $514.54 million; its shares were traded at around $2.55 with a P/E ratio of 7.97 and P/S ratio of 0.37. Cincinnati Bell Inc. had an annual average earning growth of 2% over the past 5 years.Hedge Fund Gurus that owns CBB: Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns CBB: Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

The Companys gross investment in property, plant, and equipment was $3,399.8 million and $3,145.1 million at December 31, 2010 and 2009, respectively, and was divided among the operating segments as follows:

The Companys strategy to become the preferred global colocation provider to the Fortune 1000 led to the acquisition of CyrusOne in June 2010. Since its acquisition, CyrusOne generated revenue of $45.0 million and operating income of $11.1 million. The Companys revenue increase of $41.0 million from 2009 resulted primarily from the CyrusOne acquisition and higher revenues from IT Services and Hardware, offset by revenue decreases due to continued access line loss in the Wireline segment and fewer subscribers in the Wireless segment.

Operating income increased $3.8 million to $299.3 million in 2010 compared to $295.5 million in 2009 primarily as a result of the CyrusOne acquisition and Wireless cost savings initiatives, offset by decreased operating income in the Wireline segment due to access line loss.

Net income of $28.3 million decreased by $61.3 million and diluted earnings per share of $0.09 decreased by $0.28 versus 2009 as a result of increased interest expense associated with the CyrusOne acquisition and debt refinancings, losses on extinguishment of debt and acquisition-related expenses.

Data Center Colocation revenue increased by 75% in 2010 to $125.3 million, primarily due to $45.0 million of revenue generated by CyrusOne. Operating income for the year totaled $34.2 million, an increase of $17.2 million over 2009, which was also primarily due to the operating income of $11.1 million generated by CyrusOne. The Cincinnati-based data center operations grew revenue by $8.5 million and operating income by $6.1 million as a result of the utilization of more data center space in 2010. Total data center capacity increased by 43% from the prior year to 639,000 square feet available as of December 31, 2010. The acquisition of CyrusOne added 187,000 square feet as compared to the prior year total of 446,000 square feet of available space. Utilization was 88% for 2010 compared with 87% in 2009.

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