Communications services and equipment provider Cincinnati Bell Inc. (CBB) Tuesday reported a more than double growth in first quarter profit, absent a hefty restructuring charge recorded in the prior year. Revenues dropped from a year ago. Further, the company provided full year 2009 revenue guidance.
First quarter net income of Cincinnati Bell surged to $28.8 million or $0.12 per share from $12.9 million or $0.04 per share in the year-ago quarter.
Profit rose mainly due to the absence of restructuring charges in the recent quarter. Prior year quarter recorded $24 million in charges, compared to $7 million gains in the first quarter of 2009.
On average, seven analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly revenues dropped 7% to $326 million from $348.5 million year-earlier quarter, that came below Street estimates of $344.94 million.
Operating income was $80.3 million, compared to $57.1 million in the same quarter a year ago.
Gary Wojtaszek, chief financial officer said, "We continue to be concerned about the overall impact of the economy on our business and are moving aggressively to reduce expense, maintain our profitability and generate cash flow. In addition to the pension and retiree healthcare plan changes we announced earlier in the year."
Cincinnati Bell also said that it would inflict a 7% reduction in total headcounts, suspend its contributions to the 401K plan for salaried and non-represented employees for the remainder of the year and reduce other discretionary expenses.
Looking ahead to the full year 2009, Cincinnati Bell expects revenue of approximately $1.4 billion, while analysts currently expect revenues of $1.39 billion.
CBB is currently trading at $2.59, down $0.25 or 8.80%, on a volume of 2.14 million shares.
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