Cincinnati Bell 2009 Annual Report Download - page 7

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We firmly believe that investment in data center
operations will produce long-term value for the
shareholders of Cincinnati Bell, and we recognize that
we must aggressively defend our core wireline and
wireless businesses in order to provide the cash flow
necessary to pursue this data center growth. At the same
time, we remain committed to providing our customers
the outstanding value and service they’ve come to
expect from us. We’re excited about the opportunities
ahead of us, and are confident that Cincinnati Bell will
continue to produce exceptional results for shareholders
and customers in the future.
Phillip R. Cox
Chairman of the Board
John F. Cassidy
President and Chief Executive Officer
Gary J. Wojtaszek
Chief Financial Officer
Use of Non-GAAP Financial Measures
This report contains information about diluted earnings
per share before special items, free cash flow, and
adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA). These are non-GAAP
financial measures used by Cincinnati Bell management
when evaluating results of operations and cash flow.
Management believes these measures also provide users of
the financial statements with additional and useful
comparisons of current results of operations and cash
flows with past and future periods. Non-GAAP financial
measures should not be construed as being more
important than comparable GAAP measures. Detailed
reconciliations of diluted earnings per share before special
items, free cash flow, and Adjusted EBITDA to
comparable GAAP financial measures are available at
http://investor.cincinnatibell.com (see Fourth Quarter
2009 Earnings Release Tables).
1Diluted earnings per share before special items provides a
useful measure of operating performance. Diluted earnings
per share before special items should not be considered as an
alternative to comparable GAAP measures of profitability
and may not be comparable with the measure as defined by
other companies.
2Free cash flow provides a useful measure of operational
performance, liquidity and financial health. The Company
defines free cash flow as cash provided by (used in)
operating, financing and investing activities, adjusted for the
issuance and repayment of debt, debt issuance costs, the
repurchase of common stock, and the proceeds from the sale
or the use of funds from the purchase of business operations,
including transaction costs. Free cash flow should not be
considered as an alternative to net income (loss), operating
income (loss), cash flow from operating activities, or the
change in cash on the balance sheet and may not be
comparable with free cash flow as defined by other
companies.
3Adjusted EBITDA provides a useful measure of operational
performance. The Company defines Adjusted EBITDA as
GAAP operating income plus depreciation, amortization,
restructuring charges, asset impairments, and other special
items. Adjusted EBITDA should not be considered as an
alternative to comparable GAAP measures of profitability
and may not be comparable with the measure as defined by
other companies.
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