This presentation and the documents incorporated by reference herein contain forward-looking statements regarding future events and our future

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Transcription:

This presentation and the documents incorporated by reference herein contain forward-looking statements regarding future events and our future results that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as expects, anticipates, predicts, projects, intends, plans, believes, seeks, estimates, continues, endeavors, strives, may, variations of such words and similar expressions are intended to identify such forwardlooking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this release and those discussed in other documents we file with the Securities and Exchange Commission (SEC). More information on potential risks and uncertainties is available in our recent filings with the SEC, including Cincinnati Bell s Form 10-K report, Form 10-Q reports and Form 8-K reports. Actual results may differ materially and adversely from those expressed in any forwardlooking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

This presentation contains information about adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), Adjusted EBITDA margin, and net debt. 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 Adjusted EBITDA and net debt can be found on the investor relations section of the Cincinnati Bell website.

140 years of Industry Leadership and Innovation and we re still going strong.

Copper Assets Divested national long-haul fiber operation Consumer s rapid departure from home phone to cell phone Once market leader in legacy internet and wireless Expanded presence in data center market Small cable acquisition the backbone for Fioptics product development The market and the consumer changed.

Transformation Consumer s demand for speed driven by increasing consumption of data and content Constructing premier fiber network to deliver residential customers superior entertainment and the faster internet experience Merging business assets to provide customers access to expansive local metro fiber and leading IT and communications solutions Clear right to win in Cincinnati with our significant local presence Successfully gaining market share in the face of intense competition We are adapting.

Consumers demand premier high-speed internet Businesses demand end-to-end network IT and communication services Fiber Assets Fastest network speeds carry most relevant content to consumers End-to-end network, IT and communications services provider with expanded geographical reach Healthy fiber-based entertainment, communications and IT services company with growing revenue, growing profit and sustainable cash flow Uniquely poised with distinct assets: Consumer Fiber & Business IT Services.

Wireline revenue and Adjusted EBITDA growth for the first time in over a decade Demand for strategic products resulted in a 2% year-over-year increase in revenue Adjusted EBITDA was up $1 million as margins remained strong at 46% Strategic revenue exceeded $100 million, up 24% Fioptics revenue totaled $31 million, up 43% Strategic revenue for business customers increased by 17% Strong Adjusted EBITDA of $106 million Operating income for the quarter totaled $57 million Net income of $7 million resulted in earnings per share of $0.02 Agreement to sell Wireless spectrum licenses and certain other assets valued at $210 million Cash proceeds of $194 million Assumed tower lease liabilities of $16 million

$ in millions Total revenue up 4% compared to prior year. Adjusted EBITDA up $1 million after excluding 2013 mark-to-market adjustment on stock compensation plans.

$ in millions Strategic revenue grew 24% over the last year.

106 (36) (34) (8) 7 (26) 9 Free cash flow results are in-line with expectations.

6 18% 42 42 3 9% 25 27 2 6% 8 11 11 33% 75 80 9 26% 45 50 20 59% 120 130 8 23% 50 50 6 18% 10 10 34 100% 180 190

105 38 625 537 684 40 134 99 (6) 2,256 4 2,252 927 1,325 383 5.9x 3.5x

4 163 167

When 200M Revolver steps down to $125M.