Cincinnati Bell 2014 Annual Report Download - page 64

Table of Contents
Form 10-K Part II
Cincinnati Bell Inc.
Ohio, Kentucky and Indiana Cable Franchises
The states of Ohio and Indiana permit statewide video service authorization. The Company is now authorized by Ohio and Indiana to provide service in our
self-described territory with only 10-day notification to the local government entity and other providers. The authorization can be amended to include
additional territory upon notification to the state. A franchise agreement with each local franchising authority is required in Kentucky. The Company has
reached an agreement with eight franchising authorities in Kentucky.
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Refer to Note 2 of the consolidated financial statements for further information on recently issued accounting standards. The adoption of new accounting
standards did not have a material impact on the Company’s financial results for the years ended December 31, 2014, 2013 or 2012.
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This Form 10-K contains "forward-looking" statements, as defined in federal securities laws including the Private Securities Litigation Reform Act of 1995,
which are based on our current expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the
beliefs, expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may differ materially from those
expressed in any forward-looking statements. The following important factors, among other things, could cause or contribute to actual results being
materially and adversely different from those described or implied by such forward-looking statements including, but not limited to:
• the Company’s substantial 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 requires a significant amount of cash, and its ability to generate cash depends on many factors beyond its
control;
• the Company depends on the receipt of dividends or other intercompany transfers from its subsidiaries and investments;
• 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 operates in highly competitive industries, and customers may not continue to purchase products or services, which would result in
reduced revenue and loss of market share;
• 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;
• accelerating the pace of investment in our Fioptics suite of products could have a negative impact on our financial results;
• the Company may be unable to grow our revenue and cash flows despite the initiatives we have implemented;
• 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;
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