Cincinnati Bell (CBB) Tops Q1 EPS by 32c, Revenues Beat

Cincinnati Bell (NYSE: CBB) reported Q1 EPS of $0.20, $0.32 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $380 million versus the consensus estimate of $374.01 million.

HIGHLIGHTS

• Cincinnati Bell entered into a merger agreement with Macquarie Infrastructure Partners ("MIP") to be acquired for $2.9 billion – transaction price represents a 101% premium to the closing price on December 20, 20191
• Revenue totaled $380 million, consistent with the prior year
• Operating loss of $20 million, includes the $25 million break-up fee paid in connection with the termination of Cincinnati Bell’s previously announced merger agreement with Brookfield
• Adjusted EBITDA2 increased 4% year-over-year, totaling $102 million
• Cash provided by operating activities totaled $29 million with free cash flow3 of $12 million
• Entertainment and Communications revenue totaled $244 million, generating Adjusted EBITDA of $91 million
• IT Services and Hardware revenue totaled $142 million, generating Adjusted EBITDA of $13 million

Leigh Fox, President and Chief Executive Officer of Cincinnati Bell, commented, “We started the year with strong momentum and great performance. Heading into the second quarter, we recognize there will be volatility resulting from the COVID-19 pandemic and have identified opportunities to mitigate the impact. We remain confident the team will execute on our initiatives and deliver solid results.”

Mr. Fox continued, “Our agreement to be acquired by MIP is an important milestone for Cincinnati Bell, with the transaction price of $15.50 per share reflecting the robust process executed to ensure maximum value for all of our stakeholders. This is an exciting opportunity for the Company and we look forward to continuing to engage with MIP to ensure a successful close.”

For earnings history and earnings-related data on Cincinnati Bell (CBB) click here.

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