Cincinnati Bell 2014 Annual Report Download - page 35
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Table of Contents
Form 10-K Part II
Cincinnati Bell Inc.
The Wireline segment provides products and services such as data transport, high-speed internet, entertainment, local voice, long distance, VoIP, and other
services. Cincinnati Bell Telephone Company LLC (CBT), a subsidiary of the Company, is the Incumbent Local Exchange Carrier (ILEC) for a geography
that covers a radius of approximately 25 miles around Cincinnati, Ohio, and includes parts of northern Kentucky and southeastern Indiana. CBT has operated
this territory for over 140 years. Voice and data services beyond its ILEC territory, particularly in Dayton and Mason, Ohio, are provided through the
operations of Cincinnati Bell Extended Territories LLC ("CBET"), a competitive local exchange carrier ("CLEC") and subsidiary of CBT. The Company
provides long distance and VoIP services primarily through its Cincinnati Bell Any Distance Inc. ("CBAD") and eVolve Business Solutions LLC ("eVolve")
subsidiaries.
Revenue:
Data $ 334.9
$ 317.8
$ 17.1
5 %
$ 306.9
$ 10.9
4 %
Voice - local service 203.5
229.1
(25.6)
(11)%
255.4
(26.3)
(10)%
Long distance and VoIP 107.3
107.2
0.1
0 %
113.9
(6.7)
(6)%
Entertainment 76.0
55.2
20.8
38 %
35.4
19.8
56 %
Other 19.0
15.5
3.5
23 %
18.9
(3.4)
(18)%
Total revenue 740.7
724.8
15.9
2 %
730.5
(5.7)
(1)%
Operating costs and expenses:
Cost of services and products 306.9
287.2
19.7
7 %
283.8
3.4
1 %
Selling, general and administrative 131.9
127.8
4.1
3 %
125.6
2.2
2 %
Depreciation and amortization 115.7
112.2
3.5
3 %
106.0
6.2
6 %
Restructuring (reversals) charges (0.5)
9.1
(9.6)
n/m
3.5
5.6
n/m
Curtailment gain —
(0.6)
0.6
n/m
—
(0.6)
n/m
Gain on sale or disposal of assets (0.4)
(1.1)
0.7
(64)%
(1.8)
0.7
39 %
Asset impairments 4.6
—
4.6
n/m
0.5
(0.5)
n/m
Total operating costs and expenses 558.2
534.6
23.6
4 %
517.6
17.0
3 %
Operating income $ 182.5
$ 190.2
$ (7.7)
(4)%
$ 212.9
$ (22.7)
(11)%
Operating margin 24.6%
26.2%
(1.6) pts 29.1%
(2.9) pts
Capital expenditures $ 163.7
$ 162.6
$ 1.1
1 %
$ 114.2
$ 48.4
42 %
Metrics information (in thousands):
Fioptics units passed 335.0
276.0
59.0
21 %
205.0
71.0
35 %
Internet subscribers
DSL 156.2
188.5
(32.3)
(17)%
202.6
(14.1)
(7)%
Fioptics 113.7
79.9
33.8
42 %
56.8
23.1
41 %
Total internet subscribers 269.9
268.4
1.5
1 %
259.4
9.0
3 %
Fioptics video subscribers 91.4
74.2
17.2
23 %
55.1
19.1
35 %
Local access lines 480.6
530.7
(50.1)
(9)%
573.9
(43.2)
(8)%
Long distance lines 362.8
394.1
(31.3)
(8)%
417.9
(23.8)
(6)%
35