Telecommunications and technology services provider Cincinnati Bell Inc. (CBB) on Thursday reported a loss for the fourth quarter that widened from last year, reflecting a goodwill impairment charge and higher restructuring costs. Adjusted earnings per share were flat with the year-ago period, but missed analysts' consensus estimate.
Looking ahead, the company forecast revenues for fiscal year 2012 slightly above analysts 'expectations. The company also said it will explore alternatives for its data center business, CyrusOne, including a sale. The company's shares gained more than 4.5 percent in after-hours trading.
The Cincinnati, Ohio-based company's fourth-quarter net loss applicable to common shareowners was $33.0 million or $0.17 per share, wider than loss of $21.2 million or $0.11 per share in the year-ago quarter.
The latest quarter's results include impairment of goodwill and other assets of $50.8 million.
Adjusted net income was $5.5 million, down slightly from $5.6 million in the year-ago period. However, earnings per share were flat with the prior-year period at $0.03. On average, ten analysts polled by Thomson Reuters estimated earnings of $0.06 per share. Analysts' estimates usually exclude special items.
Revenue for the quarter edged up 1 percent to $365.3 million from $362.8 million in the year-ago period, but missed analysts' consensus estimate of $369.99 million.
Data center colocation revenue rose 21 percent to $49.1 million, while wireline revenue declined 1 percent to $180.3 million and wireless revenue decreased 2 percent to $68.4 million. IT service revenue declined 3 percent to $75.6 million.
Restructuring charges for the quarter surged 44 percent to $12.2 million.
For fiscal year 2011, Cincinnati Bell's net income more than halved to $8.2 million or $0.04 per share from $17.9 million or $0.09 per share in the previous year. Adjusted net income was $47 million or $0.24 per share, down from $63.4 million or $0.31 per share in the prior year.
However, revenue for the year rose 6 percent to $1.46 billion from $1.38 billion last year.
Analysts expected the company to earn $0.27 per share for the year on revenues of $1.46 billion.
Looking ahead to fiscal year 2012, the company forecasts revenue of $1.5 billion and adjusted EBITDA of about $530 million. Analysts expect the company to report revenue of $1.48 billion for the year.
Cincinnati Bell also said its board has authorized its management to pursue the evaluation of structural, capital and financial alternatives for its Data Center business, operating under the name CyrusOne. The company said it will consider options, including a sale, initial public offering, or a full separation of the business. This evaluation is expected to take 6 to 12 months.
Houston, Texas-based CyrusOne, was split into a separate legal entity in 2010 and has a distinct management team. CyrusOne specializes in enterprise data center colocation and has 23 facilities across the U.S., London and Singapore. In 2011, CyrusOne generated revenues of about $185 million.
CBB closed Thursday's trading at $3.68, down $0.06 or 1.60 percent on a volume of 763,400 shares. In after-hours, the stock gained $0.17 or 4.62 percent to $3.85.
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