Cincinnati Bell 2003 Annual Report Download

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Understanding our customers’
needs from every angle
Summary Annual Report 2003

Table of contents

  • Page 1
    Summary Annual Report 2003 Understanding our customers' needs from every angle

  • Page 2
    Contents 2 Customer View 4 Marketplace 6 Operations 8 Community 11 Financial Highlights 12 Chairman's Letter 13 CEO's Letter 16 CFO's Letter 17 Financial Statements 22 Directors 23 Officers /Leadership Team 24 Shareholder Information

  • Page 3
    ... us to help them connect and communicate. We give customers the ability to create customized packages of local, wireless, long distance and high-speed Internet services at lower costs-and higher value-than purchasing these products and services separately. It's no wonder Cincinnati Bell has earned...

  • Page 4
    ...relying on Cincinnati Bell. People have come to expect exceptional services and treatment from Cincinnati Bell. We continue to earn that trust by putting their needs first. We have forged intimate connections with our customers-and helped them do the same. to the prepaid wireless market. Rather than...

  • Page 5
    ..., such as cable telephony providers, are targeting our customer base. Strategies that mitigate or minimize churn are vital to ongoing success. That's why our bundling strategy- creating custom packages that blend the best in local, long distance, wireless and high-speed Internet services-is so...

  • Page 6
    ...) Opportunity begins at home As a leader and familiar, trusted presence, Cincinnati Bell plays an important role customers. And we continue to expand our geographic area as the metropolitan area itself expands, bringing local, long distance and wireless services to Mason, Lebanon and Dayton, Ohio...

  • Page 7
    ...a single monthly bill at highly competitive rates. More customers sign on every day. Custom Connections,SM which allows customers to tailor a mix of local, long distance, Internet and wireless services, is fast on the rise with a 9 percent share in its first year. Half of Cincinnati Bell's revenues...

  • Page 8
    .... Custom Connections , our suite of SM Wireless operations We maintain a very strong wireless franchise in the Greater Cincinnati area, with new potential for growth. Anticipating the launch of the GSM/GPRS network in October 2003, we managed Cincinnati Bell Wireless (CBW) for customized packages...

  • Page 9
    ...'t offer. Twenty-eight percent of our wireless customers receive their service as part of a package, bundled with other services. Even more, 72 percent of our Cincinnati wireless customers are billed through their telephone bill. Customers also appreciate that Cincinnati Bell is still the only major...

  • Page 10
    ... strong technology high school. The Robert A. Taft Information Technology High School provides students access to a cutting-edge technology curriculum, internships, scholarships and job opportunities made possible by Cincinnati Bell and our technology partners. Most importantly, we give of ourselves...

  • Page 11
    ... volunteers consisting of Cincinnati Bell employees and family worked side-by-side with Taft students and staff to make more than $70,000 worth of renovations to the school. a "great place to call home." From our leading-edge technology and awardwinning customer service to underwriting educational...

  • Page 12
    ... to service excellence that Cincinnati Bell employees bring to the job every day. #1 in Residential Long Distance Customer Satisfaction-Mainstream Users, Three Years in a Row, #1 in Local Residential Telephone Customer Satisfaction, Two Years in a Row. Highest Overall Satisfaction Among Wireless...

  • Page 13
    Cincinnati Bell Inc. Financial Highlights (Dollars in Millions) 2003 Year Ended December 31 2002 (Restated) 2001 (Restated) Profit and Loss: Revenue Cost of Products and Services (excluding depreciation of $136.6, $373.9 and $353.4, respectively) Selling, General and Administrative Expenses ...

  • Page 14
    ... ahead. our current market as well as plan for growth. Transparency Transparency has become an important topic, and an ideal, throughout corporate America. It is nothing new to Cincinnati Bell. As you can see by this report, the company has always believed in providing investors with a candid and...

  • Page 15
    ... needs We provide unparalleled customer service, and that helps win customers and keep our customers loyal. Importantly, we also provide custom packages to nearly half of our households, and we continue to grow that number. Consumer penetration of our flagship Complete Connections® now stands at 44...

  • Page 16
    ... to do so. What separates Cincinnati Bell from all our competition is our ability to create custom packages across a wide array of products and services. We like to call this "our right to win." One need only look at the "You Add, We Subtract" campaign that we have been running in early 2004 to see...

  • Page 17
    ... continue to deliver exceptional service, and help to ensure that Cincinnati Bell remains the phone company where people truly feel at home. We are adept at protecting share and grow ing profitability despite threats. Our success John F. Cassidy President and Chief Executive Officer in this can be...

  • Page 18
    ... setting industry standards for margin performance and capital efficiency. In 2003, our first priority became paying ...help fund important initiatives like the launch of our GSM/GPRS network, while continuing our heritage of providing excellent customer service. For the year, Cincinnati Bell reported...

  • Page 19
    Cincinnati Bell Inc. Selected Financial Data Selected Financial Data (Dollars in Millions, Except Per Share Amounts) 2003 2002 (Restated) 2001 (Restated) 2000 (Restated) 1999 Operating Data Revenue Cost of services and products, selling, general and administrative, depreciation and amortization ...

  • Page 20
    ... Income (loss) before cumulative effect of change in accounting principle Cumulative effect of change in accounting principle, net of taxes of $47.5, $5.9 and $0.0, respectively Net income (loss) Preferred stock dividends Net income (loss) applicable to common shareowners Net income (loss...

  • Page 21
    Cincinnati Bell Inc. Consolidated Balance Sheets Consolidated Balance Sheets As of December 31 (Millions of Dollars, Except Per Share Amounts) 2003 2002... liabilities Current portion of long-term debt Accounts payable Current portion of unearned revenue and customer deposits Accrued taxes Accrued ...

  • Page 22
    ... Issuance of long-term debt Repayment of long-term debt Short-term borrowings (repayments), net Debt issuance costs Purchase of Cincinnati Bell shares for treasury and employee benefit plans Issuance of common shares - exercise of stock options Minority interest and preferred stock dividends paid...

  • Page 23
    Cincinnati Bell Inc. Business Segment Information (Dollars in Millions) 2003 2002 $ Change 2003 vs. 2002 % Change 2003 vs. 2002 2001 (Restated) $ Change 2002 vs. 2001 % Change 2002 vs. 2001 Local Revenue Local service Network access Other services Total revenue Operating costs and expenses: Cost ...

  • Page 24
    ...the Board, Cincinnati Bell Inc.; President and Chief Executive Officer, Cox Financial Corporation Carl Redfield (1, 4) Senior Vice President- Worldwide Manufacturing/Logistics, Cisco Systems, Inc. Front row (left to right): Karen M. Hoguet, Michael G. Morris, Bruce L. Byrnes, and David B. Sharrock...

  • Page 25
    ... Vice President and General Manager Business Markets Dennis P. Hinkel Senior Vice President Network and Operations Cori G. Rothenbach Vice President eCommerce Officers of Cincinnati Bell Inc.2 John F. Cassidy President and Chief Executive Officer Brian G. Keating Vice President, Human Resources...

  • Page 26
    ... phone: Individual investors may also contact us via our Shareholder Information Line at (800) 345-6301. By U.S. Mail: Cincinnati Bell Inc. Investor Relations, 201 East Fourth Street, Suite 102-725, Cincinnati, Ohio 45202. Transfer agent and register Computershare Investor Services, LLC Shareholder...

  • Page 27
    ..., changes in the regulatory environment and its 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...

  • Page 28
    201 East Fourth Street P.O. Box 2301 Cincinnati, Ohio 45202 513.397.9900 www.cincinnatibell.com