Cincinnati Bell Inc. (CBB, Financial) filed Quarterly Report for the period ended 2009-03-31.
Cincinnati Bell provides a wide range of telecommunications products and services to residential and business customers in Ohio Kentucky and Indiana. Cincinnati Bell Inc. has a market cap of $596.6 million; its shares were traded at around $2.68 with a P/E ratio of 6.6 and P/S ratio of 0.5.
Operating income for the first quarter of 2009 was $80.3 million, an increase of $23.2 million compared to the same period in 2008. The increase was primarily due to the following:
Interest expense was $31.8 million for the first quarter of 2009 as compared to $36.3 million for the first quarter of 2008. The decrease compared to last year is primarily attributable to lower debt balances due to the purchase and extinguishment of a portion of the Companys corporate bonds in 2008 and lower short-term interest rates.
Income tax expense for the first quarter of 2009 was $19.7 million compared to $9.1 million for the first quarter of 2008 primarily due to higher pretax income.
Cost of services and products decreased by $4.4 million for the three months ended March 31, 2009 as compared to the corresponding period in 2008. The decrease in the first quarter was due to decreased wages of $1.9 million related to the new union agreement signed in February 2008 and the restructuring plan announced in the fourth quarter of 2007, $2.0 million in lower benefit costs, primarily from lower pension and postretirement costs as a result of plan changes announced in February 2009, lower operating taxes of $1.1 million, and other lower costs from operations including a $0.6 million claim settlement. These decreases were offset by an increase of $2.4 million in network charges to support growth in VoIP and broadband services and increased CLEC revenues.
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 increased $0.7 million during the first quarter of 2009 versus the prior year period. The increase for the three month period was primarily attributable to a $2.7 million increase in handset subsidy costs due to Company initiatives to attract new customers and to retain existing customers. This increase was partially offset by lower handset equipment costs of $1.3 million and lower operating taxes.
Read the The complete ReportCBB is in the portfolios of Charles Brandes of Brandes Investment.
Cincinnati Bell provides a wide range of telecommunications products and services to residential and business customers in Ohio Kentucky and Indiana. Cincinnati Bell Inc. has a market cap of $596.6 million; its shares were traded at around $2.68 with a P/E ratio of 6.6 and P/S ratio of 0.5.
Highlight of Business Operations:
Consolidated revenue totaled $325.5 million for the first quarter of 2009, a decrease of $23.0 million compared to the first quarter of 2008. The decrease was primarily due to the following:Operating income for the first quarter of 2009 was $80.3 million, an increase of $23.2 million compared to the same period in 2008. The increase was primarily due to the following:
Interest expense was $31.8 million for the first quarter of 2009 as compared to $36.3 million for the first quarter of 2008. The decrease compared to last year is primarily attributable to lower debt balances due to the purchase and extinguishment of a portion of the Companys corporate bonds in 2008 and lower short-term interest rates.
Income tax expense for the first quarter of 2009 was $19.7 million compared to $9.1 million for the first quarter of 2008 primarily due to higher pretax income.
Cost of services and products decreased by $4.4 million for the three months ended March 31, 2009 as compared to the corresponding period in 2008. The decrease in the first quarter was due to decreased wages of $1.9 million related to the new union agreement signed in February 2008 and the restructuring plan announced in the fourth quarter of 2007, $2.0 million in lower benefit costs, primarily from lower pension and postretirement costs as a result of plan changes announced in February 2009, lower operating taxes of $1.1 million, and other lower costs from operations including a $0.6 million claim settlement. These decreases were offset by an increase of $2.4 million in network charges to support growth in VoIP and broadband services and increased CLEC revenues.
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 increased $0.7 million during the first quarter of 2009 versus the prior year period. The increase for the three month period was primarily attributable to a $2.7 million increase in handset subsidy costs due to Company initiatives to attract new customers and to retain existing customers. This increase was partially offset by lower handset equipment costs of $1.3 million and lower operating taxes.
Read the The complete ReportCBB is in the portfolios of Charles Brandes of Brandes Investment.
