Cincinnati Bell 2015 Annual Report Download - page 170

Form 10-K Part II Cincinnati Bell Inc.
•the Company may be unable to grow revenue and cash flows despite the initiatives we have implemented;
•failure to anticipate the need for and introduce new products and services or to compete with new
technologies may compromise the Company’s success in the telecommunications industry;
•the Company’s access lines, which generate a significant portion of its cash flows and profits, are
decreasing in number. If the Company continues to experience access line losses similar to the past
several years, its revenues, earnings and cash flows from operations may be adversely impacted;
•the Company’s failure to meet performance standards under its agreements could result in customers
terminating their relationships with the Company or customers being entitled to receive financial
compensation, which could lead to reduced revenues and/or increased costs;
•the Company generates a substantial portion of its revenue by serving a limited geographic area;
•a large customer accounts for a significant portion of the Company’s revenues and accounts receivable.
The loss or significant reduction in business from this customer could cause operating revenues to decline
significantly and have a materially adverse long-term impact on the Company’s business;
•maintaining the Company’s telecommunications networks requires significant capital expenditures, and its
inability or failure to maintain its telecommunications networks would have a material impact on its
market share and ability to generate revenue;
•increases in broadband usage may cause network capacity limitations, resulting in service disruptions or
reduced capacity for customers;
•we may be liable for material that content providers distribute on our networks;
•cyber attacks or other breaches of network or other information technology security could have an adverse
effect on our business;
•natural disasters, terrorists acts or acts of war could cause damage to our infrastructure and result in
significant disruptions to our operations;
•the regulation of the Company’s businesses by federal and state authorities may, among other things,
place the Company at a competitive disadvantage, restrict its ability to price its products and services and
threaten its operating licenses;
•the Company depends on a number of third party providers, and the loss of, or problems with, one or more
of these providers may impede the Company’s growth or cause it to lose customers;
•a failure of back-office information technology systems could adversely affect the Company’s results of
operations and financial condition;
•if the Company fails to extend or renegotiate its collective bargaining agreements with its labor union
when they expire or if its unionized employees were to engage in a strike or other work stoppage, the
Company’s business and operating results could be materially harmed;
•the loss of any of the senior management team or attrition among key sales associates could adversely
affect the Company’s business, financial condition, results of operations and cash flows;
•the Company’s debt could limit its ability to fund operations, raise additional capital, and fulfill its
obligations, which, in turn, would have a material adverse effect on its businesses and prospects generally;
•the Corporate Credit Agreement and other indebtedness impose significant restrictions on the Company;
•the Company depends on its Corporate Credit Agreement’s revolving credit facility and Receivables
Facility to provide for its short-term financing requirements in excess of amounts generated by operations,
and the availability of those funds may be reduced or limited;
•the servicing of the Company’s indebtedness is dependent on its ability to generate cash, which could be
impacted by many factors beyond its control;
54