|
Cincinnati Bell Releases 4th Quarter and Full Year 2011 Financial Results
Feb 15, 2012 (Close-Up Media via COMTEX) --
Cincinnati Bell, Inc. announced financial results for the full year and fourth quarter of 2011.
In a release on Feb. 9, the company said that 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 items1 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 amortization2 (Adjusted EBITDA) generated in 2011 totaled $545 million, up from $519 million in 2010 and above the original guidance of $530 million.
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."
Fourth Quarter and Full-Year Performance Highlights
-Data Center Colocation revenue of $49 million for the quarter represents a 21 percent increase from a year ago, while Adjusted EBITDA of $27 million reflects a 16 percent increase from the same period in 2010. During the fourth quarter, the company added 27,000 square feet of data center space and sold 43,000 square feet, increasing the segment's utilization3 to 88 percent. For the year, the company constructed 124,000 square feet of additional data center space, increasing total capacity to 763,000 square feet, and sold 110,000 square feet during this period.
-Wireline revenue for the quarter was $180 million, reflecting only a one percent decrease from the fourth quarter of 2010, as increasing demand for the company's Fioptics suite of products continues to help mitigate the impact of access line losses. As a result, Wireline was able to achieve Adjusted EBITDA margins4 of 49 percent in both the full year and the fourth quarter of 2011, comparable to the full year in 2010.
-Cincinnati Bell met or exceeded its original and revised financial guidance for 2011
Financial and Operations Review
"Our full year results continue to show that our strategy is the right one and is being well executed," said Kurt Freyberger, chief financial officer. "Our communications business generated strong EBITDA and cash flow, and the reinvestment of this cash flow into data center opportunities created significant growth in the data center colocation business."
With headquarters in Cincinnati, Ohio, Cincinnati Bell provides integrated communications solutions-including local, long distance, data, Internet, entertainment and wireless services.
More information:
www.cincinnatibell.com
((Comments on this story may be sent to newsdesk@closeupmedia.com))
[ Back To TMCnet.com's Homepage ]
|
TMCnet LOGIN
Webinars
