Cincinnati Bell 2013 Annual Report Download - page 5

Efficiencies Identified, Implemented
During the first quarter of 2013, we took the initial
steps toward the integration of CBTS and our
Cincinnati Bell Business Markets operations by
combining the sales forces of these companies. This
resulted in more than $3 million of savings in 2013.
We continue taking steps to consolidate product
offerings, systems and back office support and believe
total cost savings from integrating these two businesses
will be $5 million annually. More importantly, we
believe combining these two operations will improve
our go-to-market approach. We can offer business
customers an integrated IT and telecommunications
solution with one trusted partner whose breadth and
scale of fiber and IT assets far exceed our closest
competitor in the market.
This integration of our business teams, combined with
our efforts to “right size” corporate functions based on
the post-IPO size of our company, is expected to
generate more than $10 million in annual operating
cost reductions starting in 2014.
In the third quarter of 2013, we successfully refinanced
one of our higher coupon senior notes with a more
economical term-loan. We expect this refinancing will
reduce interest payments by approximately $20 million
in 2014 and provide increased flexibility for achieving
our goal of generating positive free cash flow in 2014.
Community
While we take bold steps to transform our company, we
hold firm in our commitment to the communities we
serve.
Through employee and company giving, we once again
ranked as a top contributor to the Greater Cincinnati
United Way as well as to the ArtsWave campaign that
provides funding for local music, dance, theater and arts
programs.
Our ongoing partnership with Taft Information
Technology High School and a new agreement with the
University of Cincinnati are both focused on
strengthening education and keeping top IT talent in
our region. We have also developed strategic
partnerships with local business incubators to help
develop new businesses in Greater Cincinnati.
We donate millions of dollars each year to local
charitable organizations in support of youth
development, education and technology, and the
military.
We’re proud to call Cincinnati our home, and we work
tirelessly to make it a great place for business and
families alike.
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