Cincinnati Bell Reports Fourth Quarter And Full Year 2011 Results

Cincinnati Bell Inc. (NYSE:CBB) today announced financial results for the full year and fourth quarter of 2011. For the year, revenue was $1.5 billion, exceeding guidance of $1.4 billion. Operating income for 2011 decreased by $40 million to $260 million, down 13 percent from 2010, due largely to a $50 million goodwill impairment in the fourth quarter. As a result, 2011 net income decreased 34 percent to $19 million, and annual diluted earnings per share fell to 4 cents from 9 cents in 2010. Net income excluding special items ¹ for the year was $57 million, compared to $74 million in 2010, down due to increased interest expense. Adjusted earnings before interest, taxes, depreciation and amortization ² (Adjusted EBITDA) generated in 2011 totaled $545 million, up from $519 million in 2010 and above the original guidance of $530 million. Adjusted EBITDA excludes charges associated with the impairment of goodwill and other special items shown in the accompanying tables.

In the fourth quarter of 2011, revenue was $365 million compared to $363 million in the same period of 2010, and operating income in the quarter amounted to $9 million, down from $65 million in the fourth quarter of 2010 due primarily to the goodwill impairment loss mentioned above. Adjusted EBITDA was $132 million, up 4 percent from the fourth quarter of 2010. Fourth quarter 2011 net income excluding special items was comparable to 2010 at $8 million, and diluted earnings per share excluding special items were also flat to 2010 at 3 cents.

“We finished off 2011 with great results that reflected solid execution across all our businesses and that once again enabled us to exceed all the financial targets we established at the beginning of the year,” said Jack Cassidy, president and chief executive officer. “In terms of both revenue and Adjusted EBITDA, this has been the company’s best year since 2003, and we are particularly pleased with the growth momentum of our data center business and the strong and stable performance of our legacy communications business.”