Cincinnati Bell Inc. (NYSE:CBB) Q3 2018 Earnings Conference Call Transcript
Nov 08, 2018 • 09:00 am ET
Good day and welcome to the CBB's Third Quarter 2018 Earnings Release Conference Call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Josh Duckworth. Please go ahead.
Thank you, and good morning everyone. Welcome to Cincinnati Bell's third quarter 2018 earnings call. With me on the call today is our President and Chief Executive Officer, Leigh Fox, and our Chief Financial Officer, Andy Kaiser. Leigh's comments today will recap our highlights and provide an update on the merger with Hawaiian Telcom. Andy will then provide additional detail on our segment results and financial position. Following the prepared remarks, Tom Simpson, our Chief Operating Officer will join Leigh and Andy for the question-and-answer portion of the call.
Before we start, let me remind you that our press release and presentation slides for today's call are posted on our Investor Relations website. Today's call is being recorded if you'd like to listen to it at a future time. As a reminder, third quarter results include three months of Hawaiian Telcom's financial performance, as the merger closed on July 2, 2018.
In addition, in the first quarter of 2018, Cincinnati Bell changed its segment reporting to align with our long-term strategy of building two distinct complementary lines of business. The Entertainment and Communications segment is now reported in the following three categories to highlight the success of our fiber investments. Consumer/SMB Fiber also referred to as Fioptics in the Cincinnati market, Enterprise Fiber and Legacy. To reflect the strength in our recurring strategic IT services within the IT Services and Hardware segment, revenues is reported in the following practices: Communications, Cloud, Consulting and Infrastructure Solutions, which was previously referred to as telecom and hardware sales.
Also as a reminder, the new revenue accounting standard was effective January 1, 2018 and as a result, Infrastructure Solutions sales are now reported net of cost of goods sold with prior periods also being restated for comparability.
(Forward-Looking Cautionary Statements)
Noted on Slide 3, the earnings release and presentation issued this morning also contain certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are also available on our website.
With that, I'm pleased to introduce Cincinnati Bell's, President and Chief Executive Officer, Leigh Fox.
Thank you, Josh, and good morning, everyone. Thanks for joining us today. Our strong third quarter performance demonstrates the success of expanding our high-quality metro fiber assets to meet the accelerating need for increased bandwidth and supports the growing demand for IoT ecosystems. It also illustrates our ability to capitalize on Cincinnati Bell's 140-plus year history as a communications provider to advance our next-generation service-based IT products.
As illustrated on Slide 5, consolidated revenue for the third quarter was $387 million, generating strong adjusted EBITDA of $105 million, which includes the results from the merger with Hawaiian Telcom that closed on July 2. Hawaiian Telcom's third quarter revenue totaling $87 million was consistent with the prior quarter. Adjusted