Cincinnati Bell Inc (CBB) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1.30 million, or $ 0.09 a share in the quarter, against a net profit of $32.60 million, or $0.71 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $0.50 million, or $0.01 a share compared with $1.90 million or $0.05 a share, a year ago. Revenue during the quarter went down marginally by 1.38 percent to $285.30 million from $289.30 million in the previous year period. Gross margin for the quarter expanded 95 basis points over the previous year period to 43.36 percent. Total expenses were 96.32 percent of quarterly revenues, up from 91.36 percent for the same period last year. That has resulted in a contraction of 496 basis points in operating margin to 3.68 percent.
Operating income for the quarter was $10.50 million, compared with $25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $74.20 million compared with $70.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 150 basis points in the quarter to 26.01 percent from 24.51 percent in the last year period.
"2016 was an exceptional year for Cincinnati Bell. We achieved our full year financial guidance and significantly improved our capital structure. The on-going success of our investments in fiber and IT solutions generated both revenue and Adjusted EBITDA growth,” said Ted Torbeck, chief executive officer. Torbeck also added, “Demand for Fioptics and our IT solutions remains impressive, driving the decision to continue investing in our strategic products for future growth. In addition, we are identifying opportunities to further reduce costs associated with the legacy copper network as we progress toward positive free cash flow for 2017."
Cincinnati Bell expects revenue to be $1,200 million for fiscal year 2017. For fiscal year 2017, the company expects operating income to be $68 million.
Operating cash flow improves significantly
Cincinnati Bell Inc has generated cash of $173.20 million from operating activities during the year, up 56.18 percent or $62.30 million, when compared with the last year. The company has spent $95.50 million cash to meet investing activities during the year as against cash inflow of $383.20 million in the last year.
The company has spent $75.40 million cash to carry out financing activities during the year as against cash outgo of $544.60 million in the last year period.
Cash and cash equivalents stood at $9.70 million as on Dec. 31, 2016, up 31.08 percent or $2.30 million from $7.40 million on Dec. 31, 2015.
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