Cincinnati Bell 2012 Annual Report Download - page 201

Form 10-K Part II Cincinnati Bell Inc.
19. Quarterly Financial Information (Unaudited)
2012
First Second Third Fourth
(dollars in millions, except per common share amounts) Quarter Quarter Quarter Quarter Total
Revenue ............................... $362.8 $368.2 $368.2 $374.7 $1,473.9
Operating income ........................ 81.0 65.2 66.0 57.9 270.1
Net income (loss) ........................ 12.6 4.5 3.9 (9.8) 11.2
Basic earnings (loss) per common share ...... $ 0.05 $ 0.01 $ 0.01 $ (0.06) $ 0.00
Diluted earnings (loss) per common share ..... $ 0.05 $ 0.01 $ 0.01 $ (0.06) $ 0.00
2011
(dollars in millions, except per common share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Total
Revenue ............................... $360.8 $367.5 $368.8 $365.3 $1,462.4
Operating income ........................ 86.4 77.6 86.3 9.2 259.5
Net income (loss) ........................ 17.9 13.5 17.6 (30.4) 18.6
Basic earnings (loss) per common share ...... $ 0.08 $ 0.06 $ 0.08 $ (0.17) $ 0.04
Diluted earnings (loss) per common share ..... $ 0.08 $ 0.05 $ 0.07 $ (0.17) $ 0.04
The effects of assumed common share conversions are determined independently for each respective quarter
and year and may not be dilutive during every period due to variations in operating results. Therefore, the sum of
quarterly per share results will not necessarily equal the per share results for the full year.
During the fourth quarter of 2012, the Company incurred a loss on extinguishment of debt of $13.6 million
from the redemption of its 7% Senior Notes due 2015, a portion of its 8
3
⁄ 8 % Senior Notes due 2020, and various
CBT notes.
During the fourth quarter of 2011, the Company recognized a goodwill impairment loss of $50.3 million in
the Wireless business segment. The impairment loss arose from declines in revenues and wireless subscribers.
20. Subsequent Events
On January 24, 2013, CyrusOne, our data center colocation business, closed its initial public offering of
18,975,000 shares of common stock at a price of $19.00 per share, which included a 2,475,000 share over-
allotment option that was exercised by the underwriters. Following the closing of the IPO, we own a 69%
economic interest in CyrusOne through our interests in the outstanding shares of common stock of CyrusOne and
our limited partnership interests in the common units of CyrusOne’s operating partnership, CyrusOne LP.
CyrusOne LP units are exchangeable into common stock of CyrusOne on a one-to-one basis, or cash at the fair
value of a share of CyrusOne common stock, at the option of CyrusOne, commencing on January 17, 2014. We
are a limited partner in CyrusOne LP, which is controlled by CyrusOne GP, and we own less than 10% of the
common stock of CyrusOne. Although we effectively own 69% of the economic interests of CyrusOne through
our ownership of its common stock and partnership units of CyrusOne LP, we no longer control its operations.
Pursuant to a contribution agreement (“Contribution Agreement”) by and between certain Cincinnati Bell
subsidiaries, CyrusOne, and CyrusOne LP, we contributed our interests in certain properties which included
approximately 932,000 square feet of data center colocation space spread across 24 data center facilities in the
Midwest, Texas, Arizona, England, and Singapore, in exchange for limited partnership interests in CyrusOne LP
which are exchangeable into shares of common stock of CyrusOne. The operations of CyrusOne, a qualified real
estate investment trust (REIT) entity, will primarily be conducted by CyrusOne LP.
The Contribution Agreements provide that CyrusOne LP assumed or succeeded to all of the Contributors’
rights, liabilities and obligations with respect to the property entity, properties interests and assets contributed.
The Contribution Agreements contain customary representations and warranties by the Contributors with respect
to the property entity, property interests and assets contributed to CyrusOne LP, such as title to any owned
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Form 10-K