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Cincinnati Bell (CBB) Misses Q4 Earnings, Revenue Estimates
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Cincinnati Bell Inc. reported disappointing financial numbers in fourth-quarter 2016 wherein both the top line and bottom line fell short of the Zacks Consensus Estimate.
On a GAAP basis, quarterly net loss came in at $3.9 million or a loss of 9 cents per share compared with a net income of $30 million or 71 cents per share in the year-ago quarter. However, quarterly adjusted (excluding special items) earnings per share of 1 cent underperform the Zacks Consensus Estimate of 3 cents.
Quarterly total revenue was $285.3 million, down 4% year over year and also below the Zacks Consensus Estimate of $305.3 million.
Operating income was $10.5 million, down a substantial 58% year over year owing to restructuring and severance related charges. Meanwhile, adjusted EBITDA (earnings before interest, depreciation and amortization) increased 4.7% year over year to $74.2 million in the reported quarter. EBITDA margin was 26% compared with 25% in the prior-year quarter.
Cash Flow
In fourth-quarter 2016, Cincinnati Bell generated $27.4 million of cash from operating activities compared with $16.2 million in the prior-year quarter. Quarterly free cash flow was a negative $71.8 million compared with a negative $55.9 million in the year-ago quarter.
Liquidity
Cincinnati Bell ended 2016 with cash and cash equivalents of $9.7 million compared with $14.8 million at the end of 2015. Net debt at quarter-end was $1,196.9 million compared with $1,230.2 million at 2015-end.
Segmental Results
Entertainment and Communications revenues rose 3% year over year to $193 million owing to a 23% rise in video revenues. The increase was partially neutralized by a 29% decline in services & other revenues.
IT Services and Hardware revenues decreased 9% year over year to $95.5 million. The downside was due to a 23% decline in telecom & IT hardware revenues, partially mitigated by a 37% rise in cloud services revenues.
Subscribers Statistics
At the end of 2016, Cincinnati Bell had 0.2013 million residential voice lines, down 7.6% year over year and 0.3224 million business voice lines, up 5.7% year over year. Long distance lines were 0.3173 million, down 6.6%. DSL Internet subscribers were 0.1056 million, down 21%. Fioptics Internet customers were 0.1976 million, up 28.6%. Fioptics video subscribers were 0.1376 million, up 20.3% year over year.
Cincinnati Bell Inc Price, Consensus and EPS Surprise
Cincinnati Bell expects revenues and adjusted EBITDA of approximately $1.2 billion and $295 million (plus or minus 2%), respectively, in 2017.
Latest Deal
In Nov 2016, Cincinnati Bell declared a deal with The E.W. Scripps Company, an American broadcasting company in Cincinnati. Per the deal, Scripps’ wholly owned subsidiary – Newsy, a digital video news channel – will now be offered through its Fioptics cable television services. Newsy is accessible on devices such as Apple Inc.’s (AAPL - Free Report) Apple TV, DISH Network Corp.’s Sling TV, Roku, Amazon.com Inc.’s (AMZN - Free Report) Fire TV and Google Chromecast. It is also available on mobile apps like iOS, Android and Kindle Fire. Cincinnati Bell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Cincinnati Bell (CBB) Misses Q4 Earnings, Revenue Estimates
Cincinnati Bell Inc. reported disappointing financial numbers in fourth-quarter 2016 wherein both the top line and bottom line fell short of the Zacks Consensus Estimate.
On a GAAP basis, quarterly net loss came in at $3.9 million or a loss of 9 cents per share compared with a net income of $30 million or 71 cents per share in the year-ago quarter. However, quarterly adjusted (excluding special items) earnings per share of 1 cent underperform the Zacks Consensus Estimate of 3 cents.
Quarterly total revenue was $285.3 million, down 4% year over year and also below the Zacks Consensus Estimate of $305.3 million.
Operating income was $10.5 million, down a substantial 58% year over year owing to restructuring and severance related charges. Meanwhile, adjusted EBITDA (earnings before interest, depreciation and amortization) increased 4.7% year over year to $74.2 million in the reported quarter. EBITDA margin was 26% compared with 25% in the prior-year quarter.
Cash Flow
In fourth-quarter 2016, Cincinnati Bell generated $27.4 million of cash from operating activities compared with $16.2 million in the prior-year quarter. Quarterly free cash flow was a negative $71.8 million compared with a negative $55.9 million in the year-ago quarter.
Liquidity
Cincinnati Bell ended 2016 with cash and cash equivalents of $9.7 million compared with $14.8 million at the end of 2015. Net debt at quarter-end was $1,196.9 million compared with $1,230.2 million at 2015-end.
Segmental Results
Entertainment and Communications revenues rose 3% year over year to $193 million owing to a 23% rise in video revenues. The increase was partially neutralized by a 29% decline in services & other revenues.
IT Services and Hardware revenues decreased 9% year over year to $95.5 million. The downside was due to a 23% decline in telecom & IT hardware revenues, partially mitigated by a 37% rise in cloud services revenues.
Subscribers Statistics
At the end of 2016, Cincinnati Bell had 0.2013 million residential voice lines, down 7.6% year over year and 0.3224 million business voice lines, up 5.7% year over year. Long distance lines were 0.3173 million, down 6.6%. DSL Internet subscribers were 0.1056 million, down 21%. Fioptics Internet customers were 0.1976 million, up 28.6%. Fioptics video subscribers were 0.1376 million, up 20.3% year over year.
Cincinnati Bell Inc Price, Consensus and EPS Surprise
Cincinnati Bell Inc Price, Consensus and EPS Surprise | Cincinnati Bell Inc Quote
Outlook
Cincinnati Bell expects revenues and adjusted EBITDA of approximately $1.2 billion and $295 million (plus or minus 2%), respectively, in 2017.
Latest Deal
In Nov 2016, Cincinnati Bell declared a deal with The E.W. Scripps Company, an American broadcasting company in Cincinnati. Per the deal, Scripps’ wholly owned subsidiary – Newsy, a digital video news channel – will now be offered through its Fioptics cable television services. Newsy is accessible on devices such as Apple Inc.’s (AAPL - Free Report) Apple TV, DISH Network Corp.’s Sling TV, Roku, Amazon.com Inc.’s (AMZN - Free Report) Fire TV and Google Chromecast. It is also available on mobile apps like iOS, Android and Kindle Fire. Cincinnati Bell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>