|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Ohio
|
|
31-1056105
|
(State of Incorporation)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
o
|
|
|
|
|
|
Non-accelerated filer
|
o
|
|
Smaller reporting company
|
o
|
|
|
|
|
|
Emerging growth company
|
o
|
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Description
|
|
Page
|
Item 1.
|
Financial Statements
|
|
|
||
|
|
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|
||
|
|
|
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||
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|
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||
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Item 2.
|
||
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Item 3.
|
||
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Item 4.
|
||
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Item 1.
|
||
|
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Item 1A.
|
||
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Item 2.
|
||
|
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|
Item 3.
|
|
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Item 4.
|
|
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Item 5.
|
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Item 6.
|
||
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
386.7
|
|
|
$
|
255.5
|
|
|
$
|
979.2
|
|
|
$
|
764.5
|
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of services and products, excluding items below
|
197.7
|
|
|
127.0
|
|
|
499.4
|
|
|
380.0
|
|
||||
Selling, general and administrative, excluding items below
|
85.7
|
|
|
53.2
|
|
|
220.2
|
|
|
162.3
|
|
||||
Depreciation and amortization
|
75.5
|
|
|
47.3
|
|
|
177.6
|
|
|
140.1
|
|
||||
Restructuring and severance related charges
|
—
|
|
|
—
|
|
|
4.9
|
|
|
29.2
|
|
||||
Transaction and integration costs
|
13.3
|
|
|
12.1
|
|
|
18.2
|
|
|
14.4
|
|
||||
Total operating costs and expenses
|
372.2
|
|
|
239.6
|
|
|
920.3
|
|
|
726.0
|
|
||||
Operating income
|
14.5
|
|
|
15.9
|
|
|
58.9
|
|
|
38.5
|
|
||||
Interest expense
|
33.7
|
|
|
18.8
|
|
|
96.3
|
|
|
54.9
|
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||
Other components of pension and postretirement benefit plans expense
|
3.0
|
|
|
3.0
|
|
|
9.5
|
|
|
9.4
|
|
||||
Gain on sale of Investment in CyrusOne
|
—
|
|
|
—
|
|
|
—
|
|
|
(117.7
|
)
|
||||
Other (income) expense, net
|
(1.2
|
)
|
|
4.5
|
|
|
(2.4
|
)
|
|
3.5
|
|
||||
(Loss) income before income taxes
|
(21.0
|
)
|
|
(10.4
|
)
|
|
(45.8
|
)
|
|
88.4
|
|
||||
Income tax (benefit) expense
|
(3.3
|
)
|
|
0.6
|
|
|
(6.0
|
)
|
|
36.5
|
|
||||
Net (loss) income
|
(17.7
|
)
|
|
(11.0
|
)
|
|
(39.8
|
)
|
|
51.9
|
|
||||
Preferred stock dividends
|
2.6
|
|
|
2.6
|
|
|
7.8
|
|
|
7.8
|
|
||||
Net (loss) income applicable to common shareowners
|
$
|
(20.3
|
)
|
|
$
|
(13.6
|
)
|
|
$
|
(47.6
|
)
|
|
$
|
44.1
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net (loss) earnings per common share
|
$
|
(0.41
|
)
|
|
$
|
(0.32
|
)
|
|
$
|
(1.06
|
)
|
|
$
|
1.05
|
|
Diluted net (loss) earnings per common share
|
$
|
(0.41
|
)
|
|
$
|
(0.32
|
)
|
|
$
|
(1.06
|
)
|
|
$
|
1.04
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net (loss) income
|
$
|
(17.7
|
)
|
|
$
|
(11.0
|
)
|
|
$
|
(39.8
|
)
|
|
$
|
51.9
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains on Investment in CyrusOne, net of tax of $4.4
|
—
|
|
|
—
|
|
|
—
|
|
|
8.3
|
|
||||
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, net of tax of ($41.3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(76.4
|
)
|
||||
Foreign currency translation gain (loss)
|
1.7
|
|
|
0.1
|
|
|
(2.6
|
)
|
|
0.1
|
|
||||
Unrealized gain on cash flow hedge arising during the period, net of tax of $0.5, $0.1
|
1.6
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Defined benefit plans:
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service benefits included in net income, net of tax of ($0.1), ($0.4), ($0.5), ($1.2)
|
(0.6
|
)
|
|
(0.8
|
)
|
|
(1.8
|
)
|
|
(2.2
|
)
|
||||
Amortization of net actuarial loss included in net income, net of tax of $1.1, $1.9, $3.5, $5.9
|
4.1
|
|
|
3.6
|
|
|
12.3
|
|
|
10.7
|
|
||||
Total other comprehensive income (loss)
|
6.8
|
|
|
2.9
|
|
|
8.0
|
|
|
(59.5
|
)
|
||||
Total comprehensive loss
|
$
|
(10.9
|
)
|
|
$
|
(8.1
|
)
|
|
$
|
(31.8
|
)
|
|
$
|
(7.6
|
)
|
|
September 30,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
10.6
|
|
|
$
|
17.8
|
|
Restricted cash
|
—
|
|
|
378.7
|
|
||
Receivables, less allowances of $9.8 and $10.4
|
286.0
|
|
|
239.8
|
|
||
Inventory, materials and supplies
|
44.7
|
|
|
44.3
|
|
||
Prepaid expenses
|
27.2
|
|
|
22.2
|
|
||
Other current assets
|
10.7
|
|
|
7.6
|
|
||
Total current assets
|
379.2
|
|
|
710.4
|
|
||
Property, plant and equipment, net
|
1,831.0
|
|
|
1,129.0
|
|
||
Goodwill
|
158.0
|
|
|
151.0
|
|
||
Intangible assets, net
|
173.9
|
|
|
132.3
|
|
||
Deferred income tax assets
|
60.6
|
|
|
12.2
|
|
||
Other noncurrent assets
|
56.8
|
|
|
52.7
|
|
||
Total assets
|
$
|
2,659.5
|
|
|
$
|
2,187.6
|
|
Liabilities and Shareowners’ Deficit
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current portion of long-term debt
|
$
|
18.3
|
|
|
$
|
18.4
|
|
Accounts payable
|
281.7
|
|
|
185.6
|
|
||
Unearned revenue and customer deposits
|
55.7
|
|
|
36.3
|
|
||
Accrued taxes
|
22.6
|
|
|
21.2
|
|
||
Accrued interest
|
25.0
|
|
|
29.9
|
|
||
Accrued payroll and benefits
|
44.0
|
|
|
28.7
|
|
||
Other current liabilities
|
27.6
|
|
|
37.2
|
|
||
Total current liabilities
|
474.9
|
|
|
357.3
|
|
||
Long-term debt, less current portion
|
1,909.4
|
|
|
1,729.3
|
|
||
Pension and postretirement benefit obligations
|
225.3
|
|
|
177.5
|
|
||
Deferred income tax liabilities
|
11.4
|
|
|
11.2
|
|
||
Other noncurrent liabilities
|
72.4
|
|
|
30.2
|
|
||
Total liabilities
|
2,693.4
|
|
|
2,305.5
|
|
||
Shareowners’ deficit
|
|
|
|
||||
Preferred stock, 2,357,299 shares authorized, 155,250 shares (3,105,000 depositary shares) of 6
3
/
4
% Cumulative Convertible Preferred Stock issued and outstanding at September 30, 2018 and December 31, 2017; liquidation preference $1,000 per share ($50 per depositary share)
|
129.4
|
|
|
129.4
|
|
||
Common shares, $.01 par value; 96,000,000 shares authorized; 50,165,394 and 42,197,965 shares issued and outstanding at September 30, 2018 and December 31, 2017
|
0.5
|
|
|
0.4
|
|
||
Additional paid-in capital
|
2,681.3
|
|
|
2,565.6
|
|
||
Accumulated deficit
|
(2,679.4
|
)
|
|
(2,639.6
|
)
|
||
Accumulated other comprehensive loss
|
(165.7
|
)
|
|
(173.7
|
)
|
||
Total shareowners’ deficit
|
(33.9
|
)
|
|
(117.9
|
)
|
||
Total liabilities and shareowners’ deficit
|
$
|
2,659.5
|
|
|
$
|
2,187.6
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net (loss) income
|
$
|
(39.8
|
)
|
|
$
|
51.9
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
177.6
|
|
|
140.1
|
|
||
Loss on extinguishment of debt
|
1.3
|
|
|
—
|
|
||
Gain on sale of Investment in CyrusOne
|
—
|
|
|
(117.7
|
)
|
||
Provision for loss on receivables
|
5.2
|
|
|
5.6
|
|
||
Noncash portion of interest expense
|
3.7
|
|
|
1.5
|
|
||
Deferred income taxes
|
(7.9
|
)
|
|
36.1
|
|
||
Pension and other postretirement payments (in excess of) less than expense
|
(7.4
|
)
|
|
2.1
|
|
||
Stock-based compensation
|
4.5
|
|
|
5.2
|
|
||
Other, net
|
(3.3
|
)
|
|
1.1
|
|
||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
|
|
|
||||
(Increase) decrease in receivables
|
(20.2
|
)
|
|
20.8
|
|
||
Decrease (increase) in inventory, materials, supplies, prepaid expenses and other current assets
|
1.5
|
|
|
(1.7
|
)
|
||
Increase in accounts payable
|
16.4
|
|
|
2.4
|
|
||
(Decrease) increase in accrued and other current liabilities
|
(7.7
|
)
|
|
11.1
|
|
||
(Increase) decrease in other noncurrent assets
|
(1.1
|
)
|
|
1.0
|
|
||
Decrease in other noncurrent liabilities
|
—
|
|
|
(2.7
|
)
|
||
Net cash provided by operating activities
|
122.8
|
|
|
156.8
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Capital expenditures
|
(140.7
|
)
|
|
(148.2
|
)
|
||
Proceeds from sale of Investment in CyrusOne
|
—
|
|
|
140.7
|
|
||
Acquisitions of businesses, net of cash acquired
|
(216.8
|
)
|
|
(9.6
|
)
|
||
Other, net
|
(0.1
|
)
|
|
0.3
|
|
||
Net cash used in investing activities
|
(357.6
|
)
|
|
(16.8
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days
|
194.2
|
|
|
(89.5
|
)
|
||
Repayment of debt
|
(324.3
|
)
|
|
(6.4
|
)
|
||
Debt issuance costs
|
(11.0
|
)
|
|
(1.3
|
)
|
||
Dividends paid on preferred stock
|
(7.8
|
)
|
|
(7.8
|
)
|
||
Other, net
|
(2.1
|
)
|
|
(1.0
|
)
|
||
Net cash used in financing activities
|
(151.0
|
)
|
|
(106.0
|
)
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(0.1
|
)
|
|
—
|
|
||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(385.9
|
)
|
|
34.0
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
396.5
|
|
|
9.7
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
10.6
|
|
|
$
|
43.7
|
|
|
|
|
|
||||
Noncash investing and financing transactions:
|
|
|
|
||||
Stock consideration for merger of Hawaiian Telcom
|
$
|
121.2
|
|
|
$
|
—
|
|
Acquisition of property by assuming debt and other noncurrent liabilities
|
$
|
6.8
|
|
|
$
|
16.7
|
|
Acquisition of property on account
|
$
|
36.6
|
|
|
$
|
19.8
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
1.
|
Description of Business and Accounting Policies
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(in millions, except per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net (loss) income
|
$
|
(17.7
|
)
|
|
$
|
(11.0
|
)
|
|
$
|
(39.8
|
)
|
|
$
|
51.9
|
|
Preferred stock dividends
|
2.6
|
|
|
2.6
|
|
|
7.8
|
|
|
7.8
|
|
||||
Net (loss) income applicable to common shareowners - basic and diluted
|
$
|
(20.3
|
)
|
|
$
|
(13.6
|
)
|
|
$
|
(47.6
|
)
|
|
$
|
44.1
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic
|
50.1
|
|
|
42.2
|
|
|
45.0
|
|
|
42.1
|
|
||||
Stock-based compensation arrangements
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||
Weighted average common shares outstanding - diluted
|
50.1
|
|
|
42.2
|
|
|
45.0
|
|
|
42.3
|
|
||||
Basic net (loss) earnings per common share
|
$
|
(0.41
|
)
|
|
$
|
(0.32
|
)
|
|
$
|
(1.06
|
)
|
|
$
|
1.05
|
|
Diluted net (loss) earnings per common share
|
$
|
(0.41
|
)
|
|
$
|
(0.32
|
)
|
|
$
|
(1.06
|
)
|
|
$
|
1.04
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Fulfillment Costs
|
|
Cost of Acquisition
|
|
Total Contract Assets
|
||||||||||||||||||||||||||||||
(dollars in millions)
|
Entertainment and Communications
|
|
IT Services and Hardware
|
|
Total Company
|
|
Entertainment and Communications
|
|
IT Services and Hardware
|
|
Total Company
|
|
Entertainment and Communications
|
|
IT Services and Hardware
|
|
Total Company
|
||||||||||||||||||
Balance as of December 31, 2017
|
$
|
17.5
|
|
|
$
|
2.0
|
|
|
$
|
19.5
|
|
|
$
|
11.6
|
|
|
$
|
1.3
|
|
|
$
|
12.9
|
|
|
$
|
29.1
|
|
|
$
|
3.3
|
|
|
$
|
32.4
|
|
Additions
|
3.1
|
|
|
0.4
|
|
|
3.5
|
|
|
1.6
|
|
|
0.4
|
|
|
2.0
|
|
|
4.7
|
|
|
0.8
|
|
|
5.5
|
|
|||||||||
Amortization
|
(3.3
|
)
|
|
(0.3
|
)
|
|
(3.6
|
)
|
|
(1.7
|
)
|
|
(0.2
|
)
|
|
(1.9
|
)
|
|
(5.0
|
)
|
|
(0.5
|
)
|
|
(5.5
|
)
|
|||||||||
Balance as of March 31, 2018
|
17.3
|
|
|
2.1
|
|
|
19.4
|
|
|
11.5
|
|
|
1.5
|
|
|
13.0
|
|
|
28.8
|
|
|
3.6
|
|
|
32.4
|
|
|||||||||
Additions
|
3.0
|
|
|
0.4
|
|
|
3.4
|
|
|
1.8
|
|
|
0.3
|
|
|
2.1
|
|
|
4.8
|
|
|
0.7
|
|
|
5.5
|
|
|||||||||
Amortization
|
(3.3
|
)
|
|
(0.3
|
)
|
|
(3.6
|
)
|
|
(1.6
|
)
|
|
(0.2
|
)
|
|
(1.8
|
)
|
|
(4.9
|
)
|
|
(0.5
|
)
|
|
(5.4
|
)
|
|||||||||
Balance as of June 30, 2018
|
17.0
|
|
|
2.2
|
|
|
19.2
|
|
|
11.7
|
|
|
1.6
|
|
|
13.3
|
|
|
28.7
|
|
|
3.8
|
|
|
32.5
|
|
|||||||||
Additions
|
3.2
|
|
|
0.6
|
|
|
3.8
|
|
|
2.3
|
|
|
0.6
|
|
|
2.9
|
|
|
5.5
|
|
|
1.2
|
|
|
6.7
|
|
|||||||||
Amortization
|
(3.2
|
)
|
|
(0.4
|
)
|
|
(3.6
|
)
|
|
(1.6
|
)
|
|
(0.3
|
)
|
|
(1.9
|
)
|
|
(4.8
|
)
|
|
(0.7
|
)
|
|
(5.5
|
)
|
|||||||||
Balance as of September 30, 2018
|
$
|
17.0
|
|
|
$
|
2.4
|
|
|
$
|
19.4
|
|
|
$
|
12.4
|
|
|
$
|
1.9
|
|
|
$
|
14.3
|
|
|
$
|
29.4
|
|
|
$
|
4.3
|
|
|
$
|
33.7
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Data
|
$
|
116.0
|
|
|
$
|
85.3
|
|
|
$
|
285.3
|
|
|
$
|
259.8
|
|
Video
|
52.4
|
|
|
37.7
|
|
|
131.3
|
|
|
110.5
|
|
||||
Voice
|
76.8
|
|
|
48.9
|
|
|
169.8
|
|
|
151.1
|
|
||||
Other
|
8.2
|
|
|
3.1
|
|
|
15.1
|
|
|
9.7
|
|
||||
Total Entertainment and Communications
|
253.4
|
|
|
175.0
|
|
|
601.5
|
|
|
531.1
|
|
||||
Consulting
|
42.1
|
|
|
16.1
|
|
|
120.0
|
|
|
49.3
|
|
||||
Cloud
|
26.2
|
|
|
17.4
|
|
|
71.8
|
|
|
57.5
|
|
||||
Communications
|
47.0
|
|
|
43.9
|
|
|
129.1
|
|
|
120.7
|
|
||||
Infrastructure Solutions
|
25.8
|
|
|
9.6
|
|
|
76.1
|
|
|
25.3
|
|
||||
Total IT Services and Hardware
|
141.1
|
|
|
87.0
|
|
|
397.0
|
|
|
252.8
|
|
||||
Intersegment revenue
|
(7.8
|
)
|
|
(6.5
|
)
|
|
(19.3
|
)
|
|
(19.4
|
)
|
||||
Total revenue
|
$
|
386.7
|
|
|
$
|
255.5
|
|
|
$
|
979.2
|
|
|
$
|
764.5
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||
(dollars in millions)
|
Entertainment and Communications
|
|
IT Services and Hardware
|
|
Intersegment revenue elimination
|
|
Total
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
Products and Services transferred at a point in time
|
$
|
7.9
|
|
|
$
|
5.6
|
|
|
$
|
33.0
|
|
|
$
|
18.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40.9
|
|
|
$
|
24.0
|
|
Products and Services transferred over time
|
239.0
|
|
|
164.0
|
|
|
106.8
|
|
|
67.5
|
|
|
—
|
|
|
—
|
|
|
345.8
|
|
|
231.5
|
|
||||||||
Intersegment revenue
|
6.5
|
|
|
5.4
|
|
|
1.3
|
|
|
1.1
|
|
|
(7.8
|
)
|
|
(6.5
|
)
|
|
—
|
|
|
—
|
|
||||||||
Total revenue
|
$
|
253.4
|
|
|
$
|
175.0
|
|
|
$
|
141.1
|
|
|
$
|
87.0
|
|
|
$
|
(7.8
|
)
|
|
$
|
(6.5
|
)
|
|
$
|
386.7
|
|
|
$
|
255.5
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||
(dollars in millions)
|
Entertainment and Communications
|
|
IT Services and Hardware
|
|
Intersegment revenue elimination
|
|
Total
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
Products and Services transferred at a point in time
|
$
|
18.3
|
|
|
$
|
15.8
|
|
|
$
|
100.4
|
|
|
$
|
42.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
118.7
|
|
|
$
|
58.5
|
|
Products and Services transferred over time
|
566.8
|
|
|
499.2
|
|
|
293.7
|
|
|
206.8
|
|
|
—
|
|
|
—
|
|
|
860.5
|
|
|
706.0
|
|
||||||||
Intersegment revenue
|
16.4
|
|
|
16.1
|
|
|
2.9
|
|
|
3.3
|
|
|
(19.3
|
)
|
|
(19.4
|
)
|
|
—
|
|
|
—
|
|
||||||||
Total revenue
|
$
|
601.5
|
|
|
$
|
531.1
|
|
|
$
|
397.0
|
|
|
$
|
252.8
|
|
|
$
|
(19.3
|
)
|
|
$
|
(19.4
|
)
|
|
$
|
979.2
|
|
|
$
|
764.5
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
(dollars in millions)
|
Hawaiian Telcom
|
|
OnX
|
||||
Assets acquired
|
|
|
|
||||
Cash
|
$
|
4.3
|
|
|
$
|
6.5
|
|
Receivables
|
25.7
|
|
|
69.9
|
|
||
Inventory, materials and supplies
|
6.9
|
|
|
9.0
|
|
||
Prepaid expenses and other current assets
|
5.9
|
|
|
2.8
|
|
||
Property, plant and equipment
|
701.8
|
|
|
11.6
|
|
||
Goodwill
|
7.6
|
|
|
133.1
|
|
||
Intangible assets
|
52.0
|
|
|
134.0
|
|
||
Deferred income tax asset
|
44.3
|
|
|
1.4
|
|
||
Other noncurrent assets
|
2.1
|
|
|
1.8
|
|
||
Total assets acquired
|
850.6
|
|
|
370.1
|
|
||
Liabilities assumed
|
|
|
|
||||
Accounts payable
|
58.0
|
|
|
63.6
|
|
||
Current portion of long-term debt
|
10.2
|
|
|
1.3
|
|
||
Unearned revenue and customer deposits
|
13.5
|
|
|
—
|
|
||
Accrued expenses and other current liabilities
|
21.6
|
|
|
18.3
|
|
||
Deferred income tax liabilities
|
—
|
|
|
42.3
|
|
||
Long-term debt, less current portion
|
304.5
|
|
|
76.7
|
|
||
Pension and postretirement benefit obligations
|
68.9
|
|
|
—
|
|
||
Other noncurrent liabilities
|
34.4
|
|
|
1.5
|
|
||
Total liabilities assumed
|
511.1
|
|
|
203.7
|
|
||
Net assets acquired
|
$
|
339.5
|
|
|
$
|
166.4
|
|
|
Hawaiian Telcom
|
|
OnX
|
|||||||||
(dollars in millions)
|
Fair Value
|
|
Useful Lives
|
|
Fair Value
|
|
Useful Lives
|
|||||
Customer relationships
|
$
|
26.0
|
|
|
15 years
|
|
|
$
|
108.0
|
|
|
15 years
|
Trade name
|
26.0
|
|
|
15 years
|
|
|
16.0
|
|
|
10 years
|
||
Technology
|
—
|
|
|
—
|
|
|
10.0
|
|
|
10 years
|
||
Total identifiable intangible assets
|
$
|
52.0
|
|
|
|
|
$
|
134.0
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
(dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
386.7
|
|
|
$
|
397.2
|
|
|
$
|
1,157.5
|
|
|
$
|
1,194.6
|
|
Net loss applicable to common shareholders
|
(20.3
|
)
|
|
(100.9
|
)
|
|
(57.0
|
)
|
|
(62.8
|
)
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted loss per common share
|
$
|
(0.41
|
)
|
|
$
|
(2.02
|
)
|
|
$
|
(1.27
|
)
|
|
$
|
(1.26
|
)
|
|
|
IT Services and Hardware
|
|
Entertainment and Communications
|
|
Total Company
|
||||||
(dollars in millions)
|
|
|
|
|
|
|
||||||
Goodwill, balance as of December 31, 2017
|
|
$
|
148.8
|
|
|
$
|
2.2
|
|
|
$
|
151.0
|
|
Activity during the year
|
|
|
|
|
|
|
||||||
Adjustments to prior year acquisitions
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|||
Mergers
|
|
—
|
|
|
7.6
|
|
|
7.6
|
|
|||
Currency translations
|
|
(1.3
|
)
|
|
—
|
|
|
(1.3
|
)
|
|||
Goodwill, balance as of September 30, 2018
|
|
$
|
148.2
|
|
|
$
|
9.8
|
|
|
$
|
158.0
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Gross Carrying
|
|
Accumulated
|
|
Net
|
|
Gross Carrying
|
|
Accumulated
|
|
Net
|
||||||||||||
(dollars in millions)
|
|
Amount
(a)
|
|
Amortization
|
|
Amount
|
|
Amount
(a)
|
|
Amortization
|
|
Amount
|
||||||||||||
Customer relationships
|
|
$
|
140.9
|
|
|
$
|
(15.3
|
)
|
|
$
|
125.6
|
|
|
$
|
116.0
|
|
|
$
|
(8.9
|
)
|
|
$
|
107.1
|
|
Trade names
|
|
41.3
|
|
|
(1.9
|
)
|
|
39.4
|
|
|
15.9
|
|
|
(0.4
|
)
|
|
15.5
|
|
||||||
Technology
|
|
9.9
|
|
|
(1.0
|
)
|
|
8.9
|
|
|
9.9
|
|
|
(0.2
|
)
|
|
9.7
|
|
||||||
Total
|
|
$
|
192.1
|
|
|
$
|
(18.2
|
)
|
|
$
|
173.9
|
|
|
$
|
141.8
|
|
|
$
|
(9.5
|
)
|
|
$
|
132.3
|
|
Customer relationships
|
|
8
|
to
|
15
|
years
|
Trade names
|
|
10
|
to
|
15
|
years
|
Technology
|
|
|
|
10
|
years
|
(dollars in millions)
|
|
|
||
Three months ended December 31, 2018
|
|
$
|
3.7
|
|
2019
|
|
14.8
|
|
|
2020
|
|
14.5
|
|
|
2021
|
|
14.3
|
|
|
2022
|
|
14.0
|
|
|
Thereafter
|
|
112.6
|
|
|
Total
|
|
$
|
173.9
|
|
|
September 30,
|
|
December 31,
|
||||
(dollars in millions)
|
2018
|
|
2017
|
||||
Current portion of long-term debt:
|
|
|
|
||||
Credit Agreement - Tranche B Term Loan due 2024
|
$
|
6.0
|
|
|
$
|
6.0
|
|
Capital lease obligations and other debt
|
12.3
|
|
|
12.4
|
|
||
Current portion of long-term debt
|
18.3
|
|
|
18.4
|
|
||
Long-term debt, less current portion:
|
|
|
|
||||
Receivable Facility
|
144.2
|
|
|
—
|
|
||
Credit Agreement - Tranche B Term Loan due 2024
|
594.0
|
|
|
594.0
|
|
||
Credit Agreement - Revolving Credit Facility
|
50.0
|
|
|
—
|
|
||
7
1/4%
Senior Notes due 2023
|
22.3
|
|
|
22.3
|
|
||
7% Senior Notes due 2024
|
625.0
|
|
|
625.0
|
|
||
8% Senior Notes due 2025
|
350.0
|
|
|
350.0
|
|
||
Cincinnati Bell Telephone Notes
|
87.9
|
|
|
87.9
|
|
||
Capital lease obligations and other debt
|
62.5
|
|
|
70.5
|
|
||
|
1,935.9
|
|
|
1,749.7
|
|
||
Net unamortized premium
|
1.7
|
|
|
1.9
|
|
||
Unamortized note issuance costs
|
(28.2
|
)
|
|
(22.3
|
)
|
||
Long-term debt, less current portion
|
1,909.4
|
|
|
1,729.3
|
|
||
Total debt
|
$
|
1,927.7
|
|
|
$
|
1,747.7
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
|
|
|
|
September 30, 2018
|
||||||||||||
(dollars in millions)
|
Balance Sheet Location
|
|
September 30, 2018
|
|
Quoted Prices in active markets Level 1
|
|
Significant observable inputs Level 2
|
|
Significant unobservable inputs Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Rate Swap
|
Other noncurrent assets
|
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
1.2
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Rate Swap
|
Other current liabilities
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
Three Months Ended
|
||
|
September 30,
|
||
(dollars in millions)
|
2018
|
||
Interest Rate Swap
|
$
|
2.1
|
|
|
Three Months Ended
|
||
|
September 30,
|
||
(dollars in millions)
|
2018
|
||
Interest Rate Swap
|
$
|
(0.6
|
)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
(dollars in millions)
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Long-term debt, including current portion*
|
$
|
1,881.1
|
|
|
$
|
1,802.6
|
|
|
$
|
1,687.1
|
|
|
$
|
1,687.5
|
|
Other financing arrangements
|
5.2
|
|
|
5.4
|
|
|
—
|
|
|
—
|
|
||||
*Excludes capital leases and note issuance costs.
|
|
|
|
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
September 30,
|
|
December 31,
|
|
||||
(dollars in millions)
|
2018
|
|
2017
|
|
||||
Land and rights-of-way
|
$
|
117.3
|
|
|
$
|
4.3
|
|
|
Buildings and leasehold improvements
|
304.3
|
|
|
179.1
|
|
|
||
Network equipment
|
3,849.3
|
|
|
3,339.4
|
|
|
||
Office software, furniture, fixtures and vehicles
|
210.8
|
|
|
162.5
|
|
|
||
Construction in process
|
48.5
|
|
|
14.7
|
|
|
||
Gross value
|
4,530.2
|
|
|
3,700.0
|
|
|
||
Accumulated depreciation
|
(2,699.2
|
)
|
|
(2,571.0
|
)
|
|
||
Property, plant and equipment, net
|
$
|
1,831.0
|
|
|
$
|
1,129.0
|
|
|
|
September 30,
|
||
(dollars in millions)
|
2018
|
||
Balance, beginning of period
|
$
|
2.3
|
|
Liabilities assumed in purchase accounting
|
6.6
|
|
|
Accretion expense
|
0.1
|
|
|
Balance, end of period
|
$
|
9.0
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
(dollars in millions)
|
Pension Benefits
|
|
Postretirement and
Other Benefits
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Other components of pension and postretirement benefit plans expense:
|
|
|
|
|
|
|
|
||||||||
Interest cost on projected benefit obligation
|
4.2
|
|
|
4.9
|
|
|
0.8
|
|
|
0.8
|
|
||||
Expected return on plan assets
|
(6.2
|
)
|
|
(6.5
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service benefit
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(1.2
|
)
|
||||
Actuarial loss
|
4.2
|
|
|
4.3
|
|
|
1.0
|
|
|
1.2
|
|
||||
Total amortization
|
4.2
|
|
|
4.3
|
|
|
0.3
|
|
|
—
|
|
||||
Pension / postretirement costs
|
$
|
2.2
|
|
|
$
|
2.7
|
|
|
$
|
1.2
|
|
|
$
|
0.9
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
(dollars in millions)
|
Pension Benefits
|
|
Postretirement and
Other Benefits
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
0.2
|
|
Other components of pension and postretirement benefit plans expense:
|
|
|
|
|
|
|
|
||||||||
Interest cost on projected benefit obligation
|
12.5
|
|
|
14.6
|
|
|
2.4
|
|
|
2.4
|
|
||||
Expected return on plan assets
|
(18.6
|
)
|
|
(19.5
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service benefit
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
(3.4
|
)
|
||||
Actuarial loss
|
12.7
|
|
|
13.1
|
|
|
3.1
|
|
|
3.5
|
|
||||
Total amortization
|
12.7
|
|
|
13.1
|
|
|
0.8
|
|
|
0.1
|
|
||||
Pension / postretirement costs
|
$
|
6.6
|
|
|
$
|
8.2
|
|
|
$
|
3.4
|
|
|
$
|
2.7
|
|
|
Pension Benefits
|
|
Postretirement and Other Benefits
|
||
|
2018
|
|
2018
|
||
Discount rate
|
4.14
|
%
|
|
4.22
|
%
|
|
2018
|
|
Healthcare cost trend
|
7.0
|
%
|
Rate to which the cost trend is assumed to decline (ultimate trend rate)
|
5.0
|
%
|
Year the rates reach the ultimate trend rate
|
2026
|
|
|
Three Months Ended September 30, 2018
|
||||||
(dollars in millions)
|
Pension Benefits
|
Postretirement and
Other Benefits
|
|||||
Service cost
|
$
|
—
|
|
|
$
|
0.2
|
|
Other components of pension and postretirement benefit plans expense:
|
|
|
|
||||
Interest cost on projected benefit obligation
|
1.7
|
|
|
0.5
|
|
||
Expected return on plan assets
|
(2.5
|
)
|
|
—
|
|
||
Pension / postretirement costs
|
$
|
(0.8
|
)
|
|
$
|
0.7
|
|
(dollars in millions)
|
Employee
Separation
|
|
Lease
Abandonment
|
|
Total
|
||||||
Balance as of December 31, 2017
|
$
|
14.4
|
|
|
$
|
0.1
|
|
|
$
|
14.5
|
|
Charges
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
Utilizations
|
(7.3
|
)
|
|
—
|
|
|
(7.3
|
)
|
|||
Balance as of March 31, 2018
|
7.4
|
|
|
0.1
|
|
|
7.5
|
|
|||
Charges
|
3.8
|
|
|
0.8
|
|
|
4.6
|
|
|||
Utilizations
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
|||
Balance as of June 30, 2018
|
10.3
|
|
|
0.9
|
|
|
11.2
|
|
|||
Hawaiian Telcom opening balance sheet adjustment
|
3.8
|
|
|
—
|
|
|
3.8
|
|
|||
Charges
|
—
|
|
|
—
|
|
|
—
|
|
|||
Utilizations
|
(6.4
|
)
|
|
(0.1
|
)
|
|
(6.5
|
)
|
|||
Balance as of September 30, 2018
|
$
|
7.7
|
|
|
$
|
0.8
|
|
|
$
|
8.5
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
(dollars in millions)
|
Entertainment and Communications
|
|
IT Services and Hardware
|
|
Total
|
||||||
Balance as of December 31, 2017
|
$
|
12.3
|
|
|
$
|
2.2
|
|
|
$
|
14.5
|
|
Charges
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|||
Utilizations
|
(5.7
|
)
|
|
(1.6
|
)
|
|
(7.3
|
)
|
|||
Balance as of March 31, 2018
|
6.6
|
|
|
0.9
|
|
|
7.5
|
|
|||
Charges
|
—
|
|
|
4.6
|
|
|
4.6
|
|
|||
Utilizations
|
(0.3
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|||
Balance as of June 30, 2018
|
6.3
|
|
|
4.9
|
|
|
11.2
|
|
|||
Hawaiian Telcom opening balance sheet adjustment
|
3.8
|
|
|
—
|
|
|
3.8
|
|
|||
Charges
|
—
|
|
|
—
|
|
|
—
|
|
|||
Utilizations
|
(3.4
|
)
|
|
(3.1
|
)
|
|
(6.5
|
)
|
|||
Balance as of September 30, 2018
|
$
|
6.7
|
|
|
$
|
1.8
|
|
|
$
|
8.5
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
(dollars in millions)
|
Unrecognized Net Periodic Pension and Postretirement Benefit Cost
|
|
Unrealized Gain on Cash Flow Hedge
|
|
Foreign Currency Translation Loss
|
|
Total
|
||||||||
Balance as of December 31, 2017
|
$
|
(173.1
|
)
|
|
$
|
—
|
|
|
$
|
(0.6
|
)
|
|
$
|
(173.7
|
)
|
Reclassifications, net
|
10.5
|
|
(a)
|
—
|
|
|
—
|
|
|
10.5
|
|
||||
Unrealized gain on cash flow hedge arising during the period, net
|
—
|
|
|
0.1
|
|
(b)
|
—
|
|
|
0.1
|
|
||||
Foreign currency loss
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
(2.6
|
)
|
||||
Balance as of September 30, 2018
|
$
|
(162.6
|
)
|
|
$
|
0.1
|
|
|
$
|
(3.2
|
)
|
|
$
|
(165.7
|
)
|
(a)
|
These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 10 for further disclosures.
|
(b)
|
The unrealized gain on cash flow hedge represents the change in the fair value of the derivative instrument that occurred during the period, net of tax. This unrealized gain is recorded in "Other noncurrent assets" and "Other current liabilities" on the Condensed Consolidated Balance Sheets. See Note 7 for further disclosures.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Entertainment and Communications
|
$
|
253.4
|
|
|
$
|
175.0
|
|
|
$
|
601.5
|
|
|
$
|
531.1
|
|
IT Services and Hardware
|
141.1
|
|
|
87.0
|
|
|
397.0
|
|
|
252.8
|
|
||||
Intersegment
|
(7.8
|
)
|
|
(6.5
|
)
|
|
(19.3
|
)
|
|
(19.4
|
)
|
||||
Total revenue
|
$
|
386.7
|
|
|
$
|
255.5
|
|
|
$
|
979.2
|
|
|
$
|
764.5
|
|
Intersegment revenue
|
|
|
|
|
|
|
|
||||||||
Entertainment and Communications
|
$
|
6.5
|
|
|
$
|
5.4
|
|
|
$
|
16.4
|
|
|
$
|
16.1
|
|
IT Services and Hardware
|
1.3
|
|
|
1.1
|
|
|
2.9
|
|
|
3.3
|
|
||||
Total intersegment revenue
|
$
|
7.8
|
|
|
$
|
6.5
|
|
|
$
|
19.3
|
|
|
$
|
19.4
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
||||||||
Entertainment and Communications
|
$
|
25.0
|
|
|
$
|
28.7
|
|
|
$
|
79.1
|
|
|
$
|
63.2
|
|
IT Services and Hardware
|
7.3
|
|
|
3.9
|
|
|
8.5
|
|
|
3.3
|
|
||||
Corporate
|
(17.8
|
)
|
|
(16.7
|
)
|
|
(28.7
|
)
|
|
(28.0
|
)
|
||||
Total operating income
|
$
|
14.5
|
|
|
$
|
15.9
|
|
|
$
|
58.9
|
|
|
$
|
38.5
|
|
Expenditures for long-lived assets*
|
|
|
|
|
|
|
|
||||||||
Entertainment and Communications
|
$
|
276.3
|
|
|
$
|
38.8
|
|
|
$
|
335.7
|
|
|
$
|
131.1
|
|
IT Services and Hardware
|
7.4
|
|
|
4.2
|
|
|
21.8
|
|
|
26.7
|
|
||||
Total expenditures for long-lived assets
|
$
|
283.7
|
|
|
$
|
43.0
|
|
|
$
|
357.5
|
|
|
$
|
157.8
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
||||||||
Entertainment and Communications
|
$
|
65.6
|
|
|
$
|
41.2
|
|
|
$
|
147.5
|
|
|
$
|
121.0
|
|
IT Services and Hardware
|
9.9
|
|
|
6.1
|
|
|
30.0
|
|
|
19.0
|
|
||||
Corporate
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||
Total depreciation and amortization
|
$
|
75.5
|
|
|
$
|
47.3
|
|
|
$
|
177.6
|
|
|
$
|
140.1
|
|
* Includes cost of acquisitions
|
|
|
|
|
|
|
|
||||||||
|
September 30,
|
|
December 31,
|
|
|
|
|
||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Entertainment and Communications
|
$
|
1,898.6
|
|
|
$
|
1,111.4
|
|
|
|
|
|
||||
IT Services and Hardware
|
450.9
|
|
|
482.7
|
|
|
|
|
|
||||||
Corporate and eliminations
|
310.0
|
|
|
593.5
|
|
|
|
|
|
||||||
Total assets
|
$
|
2,659.5
|
|
|
$
|
2,187.6
|
|
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Entertainment and Communications
|
$
|
246.9
|
|
|
$
|
169.6
|
|
|
$
|
77.3
|
|
|
46
|
%
|
|
$
|
585.1
|
|
|
$
|
515.0
|
|
|
$
|
70.1
|
|
|
14
|
%
|
IT Services and Hardware
|
139.8
|
|
|
85.9
|
|
|
53.9
|
|
|
63
|
%
|
|
394.1
|
|
|
249.5
|
|
|
144.6
|
|
|
58
|
%
|
||||||
Total revenue
|
$
|
386.7
|
|
|
$
|
255.5
|
|
|
$
|
131.2
|
|
|
51
|
%
|
|
$
|
979.2
|
|
|
$
|
764.5
|
|
|
$
|
214.7
|
|
|
28
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
Cost of services and products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Entertainment and Communications
|
$
|
117.5
|
|
|
$
|
74.4
|
|
|
$
|
43.1
|
|
|
58
|
%
|
|
$
|
271.7
|
|
|
$
|
225.8
|
|
|
$
|
45.9
|
|
|
20
|
%
|
IT Services and Hardware
|
80.2
|
|
|
52.6
|
|
|
27.6
|
|
|
52
|
%
|
|
227.7
|
|
|
154.2
|
|
|
73.5
|
|
|
48
|
%
|
||||||
Total cost of services and products
|
$
|
197.7
|
|
|
$
|
127.0
|
|
|
$
|
70.7
|
|
|
56
|
%
|
|
$
|
499.4
|
|
|
$
|
380.0
|
|
|
$
|
119.4
|
|
|
31
|
%
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
Selling, general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Entertainment and Communications
|
$
|
44.0
|
|
|
$
|
29.5
|
|
|
$
|
14.5
|
|
|
49
|
%
|
|
$
|
100.1
|
|
|
$
|
90.6
|
|
|
$
|
9.5
|
|
|
10
|
%
|
IT Services and Hardware
|
37.3
|
|
|
19.0
|
|
|
18.3
|
|
|
96
|
%
|
|
109.8
|
|
|
58.2
|
|
|
51.6
|
|
|
89
|
%
|
||||||
Corporate
|
4.4
|
|
|
4.7
|
|
|
(0.3
|
)
|
|
(6
|
)%
|
|
10.3
|
|
|
13.5
|
|
|
(3.2
|
)
|
|
(24
|
)%
|
||||||
Total selling, general and administrative
|
$
|
85.7
|
|
|
$
|
53.2
|
|
|
$
|
32.5
|
|
|
61
|
%
|
|
$
|
220.2
|
|
|
$
|
162.3
|
|
|
$
|
57.9
|
|
|
36
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
Depreciation and amortization expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Entertainment and Communications
|
$
|
65.6
|
|
|
$
|
41.2
|
|
|
$
|
24.4
|
|
|
59
|
%
|
|
$
|
147.5
|
|
|
$
|
121.0
|
|
|
$
|
26.5
|
|
|
22
|
%
|
IT Services and Hardware
|
9.9
|
|
|
6.1
|
|
|
3.8
|
|
|
62
|
%
|
|
30.0
|
|
|
19.0
|
|
|
11.0
|
|
|
58
|
%
|
||||||
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
n/m
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
%
|
||||||
Total depreciation and amortization expense
|
$
|
75.5
|
|
|
$
|
47.3
|
|
|
$
|
28.2
|
|
|
60
|
%
|
|
$
|
177.6
|
|
|
$
|
140.1
|
|
|
$
|
37.5
|
|
|
27
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
Other operating costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Restructuring and severance related charges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
n/m
|
|
|
$
|
4.9
|
|
|
$
|
29.2
|
|
|
$
|
(24.3
|
)
|
|
(83
|
)%
|
Transaction and integration costs
|
13.3
|
|
|
12.1
|
|
|
1.2
|
|
|
10
|
%
|
|
18.2
|
|
|
14.4
|
|
|
3.8
|
|
|
26
|
%
|
||||||
Total other operating costs
|
$
|
13.3
|
|
|
$
|
12.1
|
|
|
$
|
1.2
|
|
|
10
|
%
|
|
$
|
23.1
|
|
|
$
|
43.6
|
|
|
$
|
(20.5
|
)
|
|
(47
|
)%
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||||||||
Non-operating costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense
|
$
|
33.7
|
|
|
$
|
18.8
|
|
|
$
|
14.9
|
|
|
79
|
%
|
|
$
|
96.3
|
|
|
$
|
54.9
|
|
|
$
|
41.4
|
|
|
75
|
%
|
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
n/m
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
n/m
|
|
||||||
Other components of pension and postretirement benefit plans expense
|
3.0
|
|
|
3.0
|
|
|
—
|
|
|
—
|
%
|
|
9.5
|
|
|
9.4
|
|
|
0.1
|
|
|
1
|
%
|
||||||
Gain on sale of Investment in CyrusOne
|
—
|
|
|
—
|
|
|
—
|
|
|
n/m
|
|
|
—
|
|
|
(117.7
|
)
|
|
117.7
|
|
|
n/m
|
|
||||||
Other (income) expense, net
|
(1.2
|
)
|
|
4.5
|
|
|
(5.7
|
)
|
|
n/m
|
|
|
(2.4
|
)
|
|
3.5
|
|
|
(5.9
|
)
|
|
n/m
|
|
||||||
Income tax (benefit) expense
|
(3.3
|
)
|
|
0.6
|
|
|
(3.9
|
)
|
|
n/m
|
|
|
(6.0
|
)
|
|
36.5
|
|
|
(42.5
|
)
|
|
n/m
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
September 30,
|
|
||||||||||
Metrics information (in thousands):
|
2018
|
|
2017
|
|
Change
|
|
% Change
|
|
||||
Cincinnati
|
|
|
|
|
|
|
|
|
||||
Fioptics
|
|
|
|
|
|
|
|
|
||||
Data
|
|
|
|
|
|
|
|
|
||||
Internet FTTP*
|
196.8
|
|
|
174.2
|
|
|
22.6
|
|
|
13
|
%
|
|
Internet FTTN*
|
39.8
|
|
|
47.0
|
|
|
(7.2
|
)
|
|
(15
|
)%
|
|
Total Fioptics Internet
|
236.6
|
|
|
221.2
|
|
|
15.4
|
|
|
7
|
%
|
|
Video
|
|
|
|
|
|
|
|
|
||||
Video FTTP
|
115.6
|
|
|
113.5
|
|
|
2.1
|
|
|
2
|
%
|
|
Video FTTN
|
25.9
|
|
|
30.0
|
|
|
(4.1
|
)
|
|
(14
|
)%
|
|
Total Fioptics Video
|
141.5
|
|
|
143.5
|
|
|
(2.0
|
)
|
|
(1
|
)%
|
|
Voice
|
|
|
|
|
|
|
|
|
||||
Fioptics Voice Lines
|
107.0
|
|
|
104.7
|
|
|
2.3
|
|
|
2
|
%
|
|
Fioptics Units Passed
|
|
|
|
|
|
|
|
|
|
|
||
Units passed FTTP
|
459.1
|
|
|
423.6
|
|
|
35.5
|
|
|
8
|
%
|
|
Units passed FTTN
|
139.5
|
|
|
141.1
|
|
|
(1.6
|
)
|
|
(1
|
)%
|
|
Total Fioptics units passed
|
598.6
|
|
|
564.7
|
|
|
33.9
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
||||
Enterprise Fiber
|
|
|
|
|
|
|
|
|
||||
Data
|
|
|
|
|
|
|
|
|
||||
Ethernet Bandwidth (Gb)
|
4,331
|
|
|
3,733
|
|
|
598
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
||||
Legacy
|
|
|
|
|
|
|
|
|
||||
Data
|
|
|
|
|
|
|
|
|
||||
DSL
|
74.1
|
|
|
86.7
|
|
|
(12.6
|
)
|
|
(15
|
)%
|
|
Voice
|
|
|
|
|
|
|
|
|
||||
Legacy Voice Lines
|
232.7
|
|
|
271.6
|
|
|
(38.9
|
)
|
|
(14
|
)%
|
|
|
|
|
|
|
|
|
|
|
||||
*Fiber to the Premise (FTTP), Fiber to the Node (FTTN)
|
|
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
September 30,
|
|
Metrics information (in thousands):
|
2018
|
|
Hawaii
|
|
|
Consumer / SMB Fiber
|
|
|
Data
|
|
|
Internet FTTP*
|
49.5
|
|
Internet FTTN*
|
14.5
|
|
Total Consumer / SMB Fiber Internet
|
64.0
|
|
Video
|
|
|
Video FTTP
|
33.3
|
|
Video FTTN
|
15.3
|
|
Total Consumer / SMB Fiber Video
|
48.6
|
|
Voice
|
|
|
Consumer / SMB Fiber Voice Lines
|
29.9
|
|
Consumer / SMB Fiber Units Passed
**
|
|
|
Units passed FTTP
|
163.6
|
|
Units passed FTTN
|
73.3
|
|
Total Consumer / SMB Fiber units passed
|
236.9
|
|
|
|
|
Enterprise Fiber
|
|
|
Data
|
|
|
Ethernet Bandwidth (Gb)
|
1,948
|
|
|
|
|
Legacy
|
|
|
Data
|
|
|
DSL
|
50.4
|
|
Voice
|
|
|
Legacy Voice Lines
|
203.4
|
|
|
|
|
*Fiber to the Premise (FTTP), Fiber to the Node (FTTN)
|
||
** Includes units passed for both consumer and business on Oahu and neighboring islands.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
|
|
|
2018
|
|
|
|
2017
|
||||||||||||||||||||
|
|
|
Cincinnati
|
|
Hawaii
|
|
Total
|
|
|
|
Cincinnati
|
|
Hawaii
|
|
Total
|
||||||||||||
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Consumer / SMB Fiber *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Data
|
$
|
36.0
|
|
|
$
|
6.3
|
|
|
$
|
42.3
|
|
|
|
|
$
|
32.5
|
|
|
$
|
—
|
|
|
$
|
32.5
|
|
|
|
Video
|
40.7
|
|
|
11.7
|
|
|
52.4
|
|
|
|
|
37.7
|
|
|
—
|
|
|
37.7
|
|
||||||
|
|
Voice
|
9.4
|
|
|
2.7
|
|
|
12.1
|
|
|
|
|
8.6
|
|
|
—
|
|
|
8.6
|
|
||||||
|
|
Other
|
0.3
|
|
|
0.1
|
|
|
0.4
|
|
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
||||||
|
|
|
86.4
|
|
|
20.8
|
|
|
107.2
|
|
|
|
|
79.1
|
|
|
—
|
|
|
79.1
|
|
||||||
|
|
Enterprise Fiber
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Data
|
21.0
|
|
|
8.7
|
|
|
29.7
|
|
|
|
|
20.5
|
|
|
—
|
|
|
20.5
|
|
||||||
|
|
Legacy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Data
|
27.5
|
|
|
16.5
|
|
|
44.0
|
|
|
|
|
32.3
|
|
|
—
|
|
|
32.3
|
|
||||||
|
|
Voice
|
35.0
|
|
|
29.7
|
|
|
64.7
|
|
|
|
|
40.3
|
|
|
—
|
|
|
40.3
|
|
||||||
|
|
Other
|
3.8
|
|
|
4.0
|
|
|
7.8
|
|
|
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
||||||
|
|
|
66.3
|
|
|
50.2
|
|
|
116.5
|
|
|
|
|
75.4
|
|
|
—
|
|
|
75.4
|
|
||||||
Total Entertainment and Communications revenue
|
$
|
173.7
|
|
|
$
|
79.7
|
|
|
$
|
253.4
|
|
|
|
|
$
|
175.0
|
|
|
$
|
—
|
|
|
$
|
175.0
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
|
|
2018
|
|
|
|
2017
|
||||||||||||||||||||
|
|
|
Cincinnati
|
|
Hawaii
|
|
Total
|
|
|
|
Cincinnati
|
|
Hawaii
|
|
Total
|
||||||||||||
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Consumer / SMB Fiber *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Data
|
$
|
106.0
|
|
|
$
|
6.3
|
|
|
$
|
112.3
|
|
|
|
|
$
|
93.4
|
|
|
$
|
—
|
|
|
$
|
93.4
|
|
|
|
Video
|
119.6
|
|
|
11.7
|
|
|
131.3
|
|
|
|
|
110.5
|
|
|
—
|
|
|
110.5
|
|
||||||
|
|
Voice
|
28.0
|
|
|
2.7
|
|
|
30.7
|
|
|
|
|
24.8
|
|
|
—
|
|
|
24.8
|
|
||||||
|
|
Other
|
0.9
|
|
|
0.1
|
|
|
1.0
|
|
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
||||||
|
|
|
254.5
|
|
|
20.8
|
|
|
275.3
|
|
|
|
|
229.6
|
|
|
—
|
|
|
229.6
|
|
||||||
|
|
Enterprise Fiber
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Data
|
62.8
|
|
|
8.7
|
|
|
71.5
|
|
|
|
|
65.5
|
|
|
—
|
|
|
65.5
|
|
||||||
|
|
Legacy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Data
|
85.0
|
|
|
16.5
|
|
|
101.5
|
|
|
|
|
100.9
|
|
|
—
|
|
|
100.9
|
|
||||||
|
|
Voice
|
109.4
|
|
|
29.7
|
|
|
139.1
|
|
|
|
|
126.3
|
|
|
—
|
|
|
126.3
|
|
||||||
|
|
Other
|
10.1
|
|
|
4.0
|
|
|
14.1
|
|
|
|
|
8.8
|
|
|
—
|
|
|
8.8
|
|
||||||
|
|
|
204.5
|
|
|
50.2
|
|
|
254.7
|
|
|
|
|
236.0
|
|
|
—
|
|
|
236.0
|
|
||||||
Total Entertainment and Communications revenue
|
$
|
521.8
|
|
|
$
|
79.7
|
|
|
$
|
601.5
|
|
|
|
|
$
|
531.1
|
|
|
$
|
—
|
|
|
$
|
531.1
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
* Represents Fioptics in Cincinnati.
|
|
|
|
|
|
|
|
|
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Cincinnati
|
|
Hawaii
|
|
Total
|
|
Cincinnati
|
|
Hawaii
|
|
Total
|
||||||||||||
Consumer / SMB Fiber capital expenditures *
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
$
|
10.1
|
|
|
$
|
2.1
|
|
|
$
|
12.2
|
|
|
$
|
12.5
|
|
|
$
|
—
|
|
|
$
|
12.5
|
|
Installation
|
15.8
|
|
|
7.7
|
|
|
23.5
|
|
|
11.1
|
|
|
—
|
|
|
11.1
|
|
||||||
Other
|
2.7
|
|
|
0.6
|
|
|
3.3
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
||||||
Total Consumer / SMB Fiber
|
28.6
|
|
|
10.4
|
|
|
39.0
|
|
|
25.2
|
|
|
—
|
|
|
25.2
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Enterprise Fiber
|
3.9
|
|
|
3.2
|
|
|
7.1
|
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
||||||
Other
|
8.9
|
|
|
7.3
|
|
|
16.2
|
|
|
9.9
|
|
|
—
|
|
|
9.9
|
|
||||||
Total Entertainment and Communications capital expenditures
|
$
|
41.4
|
|
|
$
|
20.9
|
|
|
$
|
62.3
|
|
|
$
|
38.8
|
|
|
$
|
—
|
|
|
$
|
38.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Cincinnati
|
|
Hawaii
|
|
Total
|
|
Cincinnati
|
|
Hawaii
|
|
Total
|
||||||||||||
Consumer / SMB Fiber capital expenditures *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
$
|
25.5
|
|
|
$
|
2.1
|
|
|
$
|
27.6
|
|
|
$
|
43.9
|
|
|
$
|
—
|
|
|
$
|
43.9
|
|
Installation
|
33.3
|
|
|
7.7
|
|
|
41.0
|
|
|
39.5
|
|
|
—
|
|
|
39.5
|
|
||||||
Other
|
7.9
|
|
|
0.6
|
|
|
8.5
|
|
|
8.1
|
|
|
—
|
|
|
8.1
|
|
||||||
Total Consumer / SMB Fiber
|
66.7
|
|
|
10.4
|
|
|
77.1
|
|
|
91.5
|
|
|
—
|
|
|
91.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Enterprise Fiber
|
11.6
|
|
|
3.2
|
|
|
14.8
|
|
|
12.4
|
|
|
—
|
|
|
12.4
|
|
||||||
Other
|
22.5
|
|
|
7.3
|
|
|
29.8
|
|
|
27.2
|
|
|
—
|
|
|
27.2
|
|
||||||
Total Entertainment and Communications capital expenditures
|
$
|
100.8
|
|
|
$
|
20.9
|
|
|
$
|
121.7
|
|
|
$
|
131.1
|
|
|
$
|
—
|
|
|
$
|
131.1
|
|
* Represents Fioptics in Cincinnati
|
|
|
|
|
|
|
|
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
(dollars in millions)
|
2018
|
|
2017
|
|
Change
|
|
% Change
|
|
2018
|
|
2017
|
|
Change
|
|
% Change
|
||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consulting
|
$
|
42.1
|
|
|
$
|
16.1
|
|
|
$
|
26.0
|
|
|
n/m
|
|
|
$
|
120.0
|
|
|
$
|
49.3
|
|
|
$
|
70.7
|
|
|
n/m
|
|
Cloud
|
26.2
|
|
|
17.4
|
|
|
8.8
|
|
|
51
|
%
|
|
71.8
|
|
|
57.5
|
|
|
14.3
|
|
|
25
|
%
|
||||||
Communications
|
47.0
|
|
|
43.9
|
|
|
3.1
|
|
|
7
|
%
|
|
129.1
|
|
|
120.7
|
|
|
8.4
|
|
|
7
|
%
|
||||||
Infrastructure Solutions
|
25.8
|
|
|
9.6
|
|
|
16.2
|
|
|
n/m
|
|
|
76.1
|
|
|
25.3
|
|
|
50.8
|
|
|
n/m
|
|
||||||
Total revenue
|
141.1
|
|
|
87.0
|
|
|
54.1
|
|
|
62
|
%
|
|
397.0
|
|
|
252.8
|
|
|
144.2
|
|
|
57
|
%
|
||||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost of services and products
|
86.4
|
|
|
57.6
|
|
|
28.8
|
|
|
50
|
%
|
|
243.1
|
|
|
169.0
|
|
|
74.1
|
|
|
44
|
%
|
||||||
Selling, general and administrative
|
37.5
|
|
|
19.4
|
|
|
18.1
|
|
|
93
|
%
|
|
110.5
|
|
|
59.0
|
|
|
51.5
|
|
|
87
|
%
|
||||||
Depreciation and amortization
|
9.9
|
|
|
6.1
|
|
|
3.8
|
|
|
62
|
%
|
|
30.0
|
|
|
19.0
|
|
|
11.0
|
|
|
58
|
%
|
||||||
Restructuring and severance related charges
|
—
|
|
|
—
|
|
|
—
|
|
|
n/m
|
|
|
4.9
|
|
|
2.5
|
|
|
2.4
|
|
|
96
|
%
|
||||||
Total operating costs and expenses
|
133.8
|
|
|
83.1
|
|
|
50.7
|
|
|
61
|
%
|
|
388.5
|
|
|
249.5
|
|
|
139.0
|
|
|
56
|
%
|
||||||
Operating income
|
$
|
7.3
|
|
|
$
|
3.9
|
|
|
$
|
3.4
|
|
|
87
|
%
|
|
$
|
8.5
|
|
|
$
|
3.3
|
|
|
$
|
5.2
|
|
|
n/m
|
|
Operating margin
|
5.2
|
%
|
|
4.5
|
%
|
|
|
|
|
0.7 pts
|
|
|
2.1
|
%
|
|
1.3
|
%
|
|
|
|
0.8 pts
|
|
|||||||
Capital expenditures
|
$
|
7.4
|
|
|
$
|
4.2
|
|
|
$
|
3.2
|
|
|
76
|
%
|
|
$
|
19.0
|
|
|
$
|
17.1
|
|
|
$
|
1.9
|
|
|
11
|
%
|
|
|
||||||
Metrics information: (as of September 30, 2018)
|
Communications
|
|
Communications
|
|
Communications
|
|
Consulting
|
|
Hosted UCaaS Profiles*
|
|
NaaS Locations
|
|
SD - WAN Locations
|
|
Billable Resources
|
|
223,311
|
|
1,101
|
|
488
|
|
999
|
* Includes 23,700 profiles from Hawaii
|
|
|
|
|
|
|
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Form 10-Q Part I
|
|
Cincinnati Bell Inc.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
(a)
|
Evaluation of disclosure controls and procedures.
|
(b)
|
Changes in internal control over financial reporting.
|
Form 10-Q Part II
|
|
Cincinnati Bell Inc.
|
Item 1.
|
Legal Proceedings
|
Form 10-Q Part II
|
|
Cincinnati Bell Inc.
|
Exhibit
|
|
Number
|
Description
|
(
2.1
)
|
Agreement and Plan of Merger, dated as of July 9, 2017, among Cincinnati Bell Inc., Twin Acquisition Corp. and Hawaiian Telcom Holdco, Inc. (Exhibit 2.1 to Current Report on Form 8-K, Date of Report July 2, 2018, File No. 1-8519).
|
Amended and Restated Articles of Incorporation of Cincinnati Bell Inc. (Exhibit 3.1 to Current Report on Form 8-K, Date of Report April 25, 2008, File No. 1-8519).
|
|
Amendment to the Amended and Restated Articles of Incorporation of Cincinnati Inc. (Exhibit 3.1 to Current Report on Form 8-K, Date of Report October 4, 2016, File No. 1-8519).
|
|
(
3.3
)
|
Amended and Restated Regulations of Cincinnati Bell Inc. (Exhibit 3.3 to Quarterly Report on Form 10-Q, Date of Report August 8, 2018, File No. 1-8519).
|
(
10.1
)
|
Assumption Supplemental Indenture, dated as of July 2, 2018, by and among Cincinnati Bell Inc., the guarantors party thereto and Regions Bank, as Trustee. (Exhibit 4.1 to Current Report on Form 8-K, Date of Report July 2, 2018, File No. 1-8519).
|
(
10.2
)
|
Fifth Supplemental Indenture, dated as of July 2, 2018, by and among Cincinnati Bell Inc., the guarantors party thereto and Regions Bank, as Trustee. (Exhibit 4.2 to Current Report on Form 8-K, Date of Report July 2, 2018, File No. 1-8519).
|
Employment Agreement between Cincinnati Bell Inc. and Mark J. Fahner effective as of September 16, 2018.
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
(101.INS)**
|
XBRL Instance Document.
|
(101.SCH)**
|
XBRL Taxonomy Extension Schema Document.
|
(101.CAL)**
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
(101.DEF)**
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
(101.LAB)**
|
XBRL Taxonomy Extension Label Linkbase Document.
|
(101.PRE)**
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
Form 10-Q Part II
|
|
Cincinnati Bell Inc.
|
|
|
|
Cincinnati Bell Inc.
|
|
|
|
|
|
|
Date:
|
November 8, 2018
|
|
/s/ Andrew R. Kaiser
|
|
|
|
|
Andrew R. Kaiser
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
Date:
|
November 8, 2018
|
|
/s/ Shannon M. Mullen
|
|
|
|
|
Shannon M. Mullen
|
|
|
|
|
Chief Accounting Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 8, 2018
|
/s/ Leigh R. Fox
|
|
|
Leigh R. Fox
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 8, 2018
|
/s/ Andrew R. Kaiser
|
|
|
Andrew R. Kaiser
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Leigh R. Fox
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Leigh R. Fox
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Chief Executive Officer
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November 8, 2018
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Andrew R. Kaiser
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Andrew R. Kaiser
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Chief Financial Officer
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November 8, 2018
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