Cincinnati Bell Inc. (NYSE:CBB) filed Quarterly Report for the period ended 2010-03-31.
Cincinnati Bell Inc. has a market cap of $671.8 million; its shares were traded at around $3.34 with a P/E ratio of 7.9 and P/S ratio of 0.5. CBB is in the portfolios of Charles Brandes of Brandes Investment, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:Consolidated revenue totaled $323.7 million for the first quarter of 2010, a decrease of $1.8 million compared to the first quarter of 2009. The decrease was primarily due to the following:
Income tax expense for the first quarter of 2010 was $22.6 million compared to $19.7 million for the first quarter of 2009. This increase was primarily due to the effect of a tax law change, that now requires application of federal income taxes against the retiree Medicare drug subsidies received by the Company, totaling $3.9 million.
Cost of services and products increased by $1.6 million for the three months ended March 31, 2010 as compared to the corresponding period in 2009. The increase was primarily driven by higher network costs of $2.7 million to support growth in VoIP and Fioptics revenues and $1.1 million in higher operating taxes. These increases were partially offset by lower benefit costs of $1.0 million primarily due to the pension and postretirement plan changes announced in February 2009 and lower wages due to the Companys restructuring activities.
Selling, general and administrative expenses decreased by $3.9 million for the three months ended March 31, 2010 versus the prior year. The decrease for the three months ended March 31, 2010 primarily consists of a $1.5 million decrease in payroll costs primarily due to the pension and postretirement plan changes announced in February 2009, a $1.1 million decrease in costs primarily resulting from lower negotiated rates with third party service providers and lower bad debt and advertising expenses.
Cost of services and products consists largely of network operation costs, interconnection expenses with other telecommunications providers, roaming expense (which is incurred for subscribers to use their handsets in the territories of other wireless service providers), and cost of handsets and accessories sold. These expenses decreased $8.6 million during the first quarter of 2010 versus the prior year period. The decrease was primarily attributable to a $3.5 million decrease in handset costs, primarily caused by a decrease in handset subsidies due to lower activations, $2.6 million decrease in roaming costs due to renegotiated rates and lower minutes of use, $1.1 million in lower third party service provider costs and lower costs due to the sale of the wireless towers in December 2009.
Selling, general and administrative expenses decreased $3.4 million for the three months ended March 31, 2010 compared to the same period in 2009 due to a $1.3 million decrease in bad debt expense, $0.9 million decrease in advertising and lower third party service provider costs.
Read the The complete Report