Cincinnati Bell Inc. (ticker: CBB, exchange: New York Stock Exchange (.N))
News Release -
Cincinnati Bell Inc. Announces New Date for Fourth Quarter and 2004 Annual Results and Conference Call and Confirms Guidance
CINCINNATI--(BUSINESS WIRE)--Feb. 2, 2005--Cincinnati Bell Inc.
(NYSE:CBB) will host a conference call Tuesday, February 15, at 9:00
a.m. (EST) to discuss fourth quarter and 2004 annual results. These
results will be released before the market opens Tuesday, February 15.
The company is announcing this new date in order to provide sufficient
time to complete standard accounting procedures, which have
experienced a slight delay in light of increased activity involving
the company's previously announced refinancing plan.
The company also provided the following updates to its previously
issued guidance for 2004 results:
-- Net debt(1) reduction of moderately greater than $140 million
-- Free cash flow(2) of moderately greater than $160 million
-- The company reported wireless net additions of 2,000 for the
fourth quarter and 7,000 for the year. In the fourth quarter,
postpaid churn was 2.78 percent, a 0.9 point improvement
versus the third quarter of 2004. The company finished the
year with 481,000 wireless subscribers, 306,000 of which were
The company also expects to meet all other previously issued
guidance for 2004:
-- Net access line decline of below 2 percent
-- Revenue decline, excluding Broadband Services, of low
-- DSL net additions of 30,000 to 35,000
-- EBITDA(3) at the high end of the range of $485 million to $505
-- Effective tax rate of approximately 50 percent; with
approximately $5 million in cash tax payments
-- Capital expenditures of 10 to 12 percent of revenue
Cincinnati Bell's expectation regarding its 2004 results is based
on preliminary internal financial reports which are subject to
completion of its normal year-end audit procedures. Neither the
company nor its outside auditors have completed their year-end audit
for the 2004 fiscal year, and, as a result, its actual earnings
results may differ from the expected results confirmed above.
For the conference call on February 15, the dial-in number is
1-877-641-0086. International callers may dial 678-460-1867. To join
the call, please phone fifteen minutes prior to the start time.
A taped replay of the conference call will be available one hour
after the conclusion of the teleconference until 5 p.m. (EST) on
Wednesday, February 23, 2004.
US Replay #:
The conference will be available via the Internet, live and in a
listen-only mode, and afterward via replay. Cincinnati Bell's Internet
address is http://www.cincinnatibell.com/. Once there, click on the
Investor Relations button on the right side of the home page. Then,
click on the Webcasts/Presentations tab and follow the instructions. A
computer with a sound card and a current version of RealPlayer or
Windows Media Player software are required to listen to the call.
About Cincinnati Bell Inc.
Cincinnati Bell Inc. (NYSE:CBB) is parent to one of the nation's
most respected and best performing local exchange and wireless
providers with a legacy of unparalleled customer service excellence.
Cincinnati Bell provides a wide range of telecommunications products
and services to residential and business customers in Ohio, Kentucky
and Indiana. Cincinnati Bell is headquartered in Cincinnati, Ohio. For
more information, visit www.cincinnatibell.com.
Safe Harbor Note
Certain of the statements and predictions contained in this
release constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act. In particular, any
statements, projections or estimates that include or reference the
words "believes," "intends", "anticipates," "plans," "expects,"
"will," or any similar expression fall within the safe harbor for
forward-looking statements contained in the Reform Act. Actual results
or outcomes may differ materially from those indicated or suggested by
any such forward-looking statement for a variety of reasons, including
but not limited to, Cincinnati Bell's ability to maintain its market
position in communications services, including for wireless, wireline
and internet services, general economic trends affecting the purchase
or supply of telecommunication services, world and national events
that may affect the ability to provide services, changes in the
regulatory environment, any rulings, orders or decrees that may be
issued by any court or arbitrator, restrictions imposed under our
various credit facilities and debt instruments, work stoppages caused
by labor disputes, adjustments resulting from year-end audit
procedures and Cincinnati Bell's ability to develop and launch new
products and services. More information on potential risks and
uncertainties is available in the company's recent filings with the
Securities and Exchange Commission, including Cincinnati Bell's annual
Form 10-K report, quarterly Form 10-Q reports and Forms 8-K. The
forward-looking statements included in this release represent the
company's estimates as of February 2, 2005. The company anticipates
that subsequent events may cause its estimates to change.
Use of Non-GAAP Financial Measures
(1) The company has presented certain information regarding net
debt in the preceding discussion because the company believes
net debt provides a useful measure of a company's liquidity
and financial health. Net debt is defined by the company as
the sum of the face amount of short-term and long-term debt,
in addition to BRCOM preferred stock (as applicable), offset
by cash and cash equivalents.
(2) The company has presented certain information regarding free
cash flow in the preceding discussion because the company
believes cash flow provides a useful measure of a company's
operational performance, liquidity and financial health. Free
cash flow is defined by the company as SFAS 95 cash provided
by (used in) operating, financing and investing activities,
less changes in restricted cash in operating activities,
issuance and repayment of long-term debt in financing
activities, short-term borrowings (repayments) in financing
activities and proceeds from the sale of discontinued
operations and assets in investing activities. Free cash flow
should not be considered as an alternative to net income
(loss), operating income (loss), cash flow from operating
activities, or the change in cash on the balance sheet and may
not be comparable with cash flow as defined by other
(3) The company has presented certain information regarding EBITDA
(Earnings Before Interest, Taxes, Depreciation and
Amortization) because the company believes EBITDA provides
a useful measure of the company's operational performance.
EBITDA is defined by the company as GAAP Operating Income plus
depreciation, amortization, restructuring charges, asset
impairments and other special items. EBITDA should not be
considered as an alternative to comparable GAAP measures of
These non-GAAP financial measures should not be construed as
being more important than comparable GAAP measures. They are
presented because Cincinnati Bell Inc. management uses this
information when evaluating the company's results of
operations and cash flow and believes that this information
provides the users of the financial statements with additional
and useful comparisons of the company's current results of
operations and cash flows with past and future periods.
CONTACT: Cincinnati Bell Inc.
Michael Vanderwoude, 513-397-7685 (Investor/Media)
SOURCE: Cincinnati Bell Inc.