Attached files
| file | filename |
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| EX-99.1 - Q4 2017 EARNINGS RELEASE - CINCINNATI BELL INC | earningsreleaseq42017.htm |
| 8-K - CINCINNATI BELL INC. 8-K - CINCINNATI BELL INC | a8-kearningsreleaseshellq4.htm |
Cincinnati Bell
Fourth Quarter and Full Year 2017 Results
February 15, 2018
Safe Harbor
This presentation may contain “forward-looking” statements, as defined in federal securities laws including the Private Securities Litigation Reform Act of 1995, which are based on our current
expectations, estimates, forecasts and projections. Statements that are not historical facts, including statements about the beliefs, expectations and future plans and strategies of the Company, are
forward-looking statements. Actual results may differ materially from those expressed in any forward-looking statements. The following important factors, among other things, could cause or
contribute to actual results being materially and adversely different from those described or implied by such forward-looking statements including, but not limited to: those discussed in this release;
we operate in highly competitive industries, and customers may not continue to purchase products or services, which would result in reduced revenue and loss of market share; we may be unable to
grow our revenues and cash flows despite the initiatives we have implemented; failure to anticipate the need for and introduce new products and services or to compete with new technologies may
compromise our success in the telecommunications industry; our access lines, which generate a significant portion of our cash flows and profits, are decreasing in number and if we continue to
experience access line losses similar to the past several years, our revenues, earnings and cash flows from operations may be adversely impacted; our failure to meet performance standards under
our agreements could result in customers terminating their relationships with us or customers being entitled to receive financial compensation, which would lead to reduced revenues and/or
increased costs; we generate a substantial portion of our revenue by serving a limited geographic area; a large customer accounts for a significant portion of our revenues and accounts receivable
and the loss or significant reduction in business from this customer would cause operating revenues to decline and could negatively impact profitability and cash flows; maintaining our
telecommunications networks requires significant capital expenditures, and our inability or failure to maintain our telecommunications networks could have a material impact on our market share
and ability to generate revenue; increases in broadband usage may cause network capacity limitations, resulting in service disruptions or reduced capacity for customers; we may be liable for
material that content providers distribute on our networks; cyber attacks or other breaches of network or other information technology security could have an adverse effect on our business; natural
disasters, terrorists acts or acts of war could cause damage to our infrastructure and result in significant disruptions to our operations; the regulation of our businesses by federal and state
authorities may, among other things, place us at a competitive disadvantage, restrict our ability to price our products and services and threaten our operating licenses; we depend on a number of
third party providers, and the loss of, or problems with, one or more of these providers may impede our growth or cause us to lose customers; a failure of back-office information technology systems
could adversely affect our results of operations and financial condition; if we fail to extend or renegotiate our collective bargaining agreements with our labor union when they expire or if our
unionized employees were to engage in a strike or other work stoppage, our business and operating results could be materially harmed; the loss of any of the senior management team or attrition
among key sales associates could adversely affect our business, financial condition, results of operations and cash flows; our debt could limit our ability to fund operations, raise additional capital,
and fulfill our obligations, which, in turn, would have a material adverse effect on our businesses and prospects generally; our indebtedness imposes significant restrictions on us; we depend on our
loans and credit facilities to provide for our short-term financing requirements in excess of amounts generated by operations, and the availability of those funds may be reduced or limited; the
servicing of our indebtedness is dependent on our ability to generate cash, which could be impacted by many factors beyond our control; we depend on the receipt of dividends or other
intercompany transfers from our subsidiaries and investments; the trading price of our common shares may be volatile, and the value of an investment in our common shares may decline; the
uncertain economic environment, including uncertainty in the U.S. and world securities markets, could impact our business and financial condition; our future cash flows could be adversely affected
if it is unable to fully realize our deferred tax assets; adverse changes in the value of assets or obligations associated with our employee benefit plans could negatively impact shareowners’ deficit and
liquidity; third parties may claim that we are infringing upon their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products; third
parties may infringe upon our intellectual property, and we may expend significant resources enforcing our rights or suffer competitive injury; we could be subject to a significant amount of litigation,
which could require us to pay significant damages or settlements; we could incur significant costs resulting from complying with, or potential violations of, environmental, health and human safety
laws; the timing and likelihood of completing the merger with Hawaiian Telcom, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the
proposed transaction that could reduce anticipated benefits or cause the parties to abandon the transaction; the possibility that competing offers or acquisition proposals for Hawaiian Telcom will be
made; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the possibility that the expected synergies and value creation
from the proposed transaction involving Hawaiian Telcom will not be realized or will not be realized within the expected time period; the risk that the businesses of the Company and Hawaiian
Telcom and other acquired companies will not be integrated successfully; disruption from the proposed transaction involving Hawaiian Telcom making it more difficult to maintain business and
operational relationships; the risk that unexpected costs will be incurred; and the possibility that the proposed transaction involving Hawaiian Telcom does not close, including due to the failure to
satisfy the closing conditions and the other risks and uncertainties detailed in our filings, including our Form 10-K, with the SEC as well as Hawaiian Telcom’s filings, including its Form 10-K, with the
SEC.
These forward-looking statements are based on information, plans and estimates as of the date hereof and there may be other factors that may cause our actual results to differ materially from
these forward-looking statements. We assume no obligation to update the information contained in this release except as required by applicable law.
2
Non-GAAP Financial Measures
This presentation contains information about adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA), Adjusted EBITDA margin, net debt, net income applicable to common
shareholders excluding special items and free cash flow. 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 these non-
GAAP financial measures to comparable GAAP financial measures have been included in the tables distributed
with this release and are available in the Investor Relations section of www.cincinnatibell.com within the Investor
Relations section.
3
Call Participants
Page 4
Leigh Fox
President and CEO, Cincinnati Bell
Andy Kaiser
CFO, Cincinnati Bell
4
Tom Simpson
COO, Cincinnati Bell
Page 5
2017 Highlights
5
• CBTS launched nationwide SD-WAN and Network as a
Service (NaaS)
• Acquired SunTel Services and OnX to grow footprint and
addressable market beyond Cincinnati, adding 20 sales
offices throughout North America
Substantial Milestones Achieved in Building Two Distinct, Complementary Lines of Business with Expanded Geographic Reach,
Customer Diversification and Increased Runway for Growth
Entertainment & Communications IT Services & Hardware
• Fiber investments continue to generate year-over-year
revenue and Adjusted EBITDA growth
• Announced Hawaiian Telcom merger to accelerate
leadership in fiber growth through enhanced scale and
diversification
Key Financials
2017 Guidance 2017 Actuals
Original Revised Cincinnati Bell
OnX
Contribution
Total
Revenue $1.2B $1.35B – $1.40B $1.14B $0.15B $1.29B
Adj. EBITDA $295M(1) $305M(1) $295M $8M $303M
1. Plus or minus 2 percent
Generated Positive Free Cash Flow – $28M
$8 $4
$8
$68 $70
4Q16 4Q17
IT Services & Hardware OnX 4Q17 Contribution
Entertainment & Communications Corporate
$40 $25
$8
$273 $287
-$18 -$17
FY16 FY17
$95 $83
$150
$193
$197
4Q16 4Q17
IT Services & Hardware OnX 4Q17 Contribution
Entertainment & Communications Corporate
$431 $362
$150
$769
$790
FY16 FY17
Page 6
Fourth Quarter and Full Year 2017 Highlights
6
Strategic Revenue Fioptics
Key Financial Metrics
Adjusted EBITDA
($ in millions)
Total Revenue
($ in millions)
4Q17 FY17
$80M $310M
+17% y/y +22% y/y
4Q17 FY17
$201M $705M
+21% y/y +11% y/y
572,200
addresses
+7% y/y
Revenue
$285
$427
$1,186
$1,289
-$3 -$3 -$14 -$13
$72(1)
$78
$295(1) $303
-$4 -$4
1. Excludes non-cash amortization of postretirement prior service credit related to the E&C segment ending in FY 2016 - $2M and $10 M in 4Q16
and FY16, respectively.
Page 7
Entertainment & Communications
7
Strategic Revenue
with breakdown
for 2 segments
Segment Results
Strategic Revenue4Q17 Highlights
• Strong and consistent performance in the fiber network business
• Fioptics revenue of $80M, up 17% y/y
• Fioptics internet subscribers of 226,600, up 15% y/y
• Fioptics video subscribers of 146,500, up 6% y/y
• Positive net subscriber adds for internet and video during 4Q17
• Total internet subscribers of 308,700 in 4Q17, up 2% y/y
• Received merger approval from Hawaiian Telcom shareholders
and State of Hawaii DCCA Cable Television Division
($ in millions) 4Q17 Y/Y FY17 Y/Y
Consumer $77 14% $299 19%
Business 44 9% 168 10%
Carrier 11 2% 48 7%
Total $132 11% $515 15%
($ in millions) 4Q17 Y/Y FY17 Y/Y
Revenue $197 2% $790 3%
Adj. EBITDA $70 flat $287 1%
Adj. EBITDA
margin
35% -2% 36% -2%
FY17 Segment Revenue Elements
Data
+2% y/y
Voice
-3% y/y
Video
+19%
y/y
Services
and
Other
-6% y/y
Page 8
Continued Success in Fioptics
8
CBB continues to win with
fiber in an increasingly
competitive environment
• Fioptics is available to 572,200 addresses - approximately 70% of Greater Cincinnati
• Passed 38,800 new addresses in 2017, above target of 35,000 for the year
• Video churn of 2.2% in 4Q17, consistent with prior year
• 4Q17 single-family churn was 1.9%; apartment churn was 3.3%
Total Fioptics Subscribers
(in thousands)
1. FTTN: fiber-to-the-node
2. FTTH: fiber-to-the-home
$33 $38
$28
$33
$8
$9
4Q16 4Q17
Video Internet Voice
Fioptics Revenue
($ in millions)
$69
$80
$126
$149
$99
$127
$29
$34
FY16 FY17
$254
$310 26%
40%
19%
=
$88
$49
$28
+7% y/y
+3% y/y
+2% y/y
Video
Internet
Voice
Video
Internet
Voice
Fioptics Addresses
(in thousands)
Fioptics Penetration
(y/y)
Fioptics Monthly ARPU– 4Q17
533
572
138 147
198
227
96 106
4Q16 4Q17
Video Internet Voice
141 141
392
431
4Q16 4Q17
FTTN FTTH(1) (2)
$28 $25
$67 $77
4Q16 4Q17
Legacy Strategic Integration
$122 $104
$252 $299
FY16 FY17
$32 $28
$40 $44
4Q16 4Q17
Legacy Strategic Integration
$133 $116
$153
$168
FY16 FY17
Page 9
Entertainment & Communications
9
Consumer Market Business Market Carrier Market
• Fioptics revenue growth
continues to more than offset
legacy declines
• Ongoing transition of customers
from copper network to strategic
fiber-based products continues
• On-going FCC switched access rate
reductions
• National carriers increased focus on
reducing costs
• Wireless backhaul win increases
macro tower market share to > 90%
1. Entertainment & Communications Consumer Integration revenue totaled $0.9M in 4Q16, $3.9M in FY16, $0.4M in 4Q17, and $0.7M in FY17
2. Entertainment & Communications Business Integration revenue totaled $0.5M in 4Q16, $1.8M in FY16, $0.4M in 4Q17, and $1.5M in FY17
($ in millions)
(1)
(2)
$96
$102
$378
$404
$72 $72
$288 $286
$14 $12
$11 $11
4Q16 4Q17
Legacy Strategic
$58 $52
$45
$48
FY16 FY17
$25 $23
$103 $100
=
• Add operational scale and expand the Company’s fiber-
centric footprint and commercial opportunity to Hawaii
Page 10
Merger with Hawaiian Telcom
10
Growth
Opportunity
Completed Several Critical Milestones Regarding Hawaiian Telcom Merger Approval Process in 4Q17
Merger with Hawaiian Telcom Represents Opportunity to Scale Cincinnati Bell’s Fiber Success in Another Attractive Market
• Hawaii’s fiber-centric technology leader providing
voice, video, broadband, data center and cloud
solutions
Transaction
Size
Business
Description
Approval Process
and Closing
Expected
Cost Synergies*
• Network: ~$11M annually
• $650M including existing net debt
• 60% cash and 40% stock
*To be realized within two years post-close, and excluding
potential revenue synergies from cross-selling opportunities
• Approved by Hawaiian Telcom shareholders
• Cleared the Hart-Scott-Rodino Act review period
• Received approval from the Hawaii DCCA Cable Television
Division
• Pending approval from FCC and Hawaiian Public Utilities
Commission
• Closing expected in H2 2018
Cincinnati Bell Network Map
Hawaiian Telcom Network Map
Page 11
IT Services & Hardware
11
4Q17 Highlights
• OnX contributed $150M in revenue and $8M in Adj. EBITDA in
4Q17
• Decline in Telecom & IT hardware due to cost cutting initiatives by
a large customer
• Awarded national UCaaS/SD-WAN project – currently in the
implementation phase for start up in H2 2018
Segment Results
Strategic Revenue
($ in millions) 4Q17 Y/Y FY17 Y/Y
Professional Services $16 -23% $70 -21%
Management and Monitoring 6 -30% 21 -34%
Unified Communications 7 1% 29 -1%
Cloud Services 11 -21% 47 0%
OnX(1) 32 - 32 -
Total $72 45% $199 1%
1. OnX acquisition closed on October 2, 2017. OnX’s strategic revenue consisted of Professional Services ($25M) and Cloud Services ($7M)..
($ in millions) 4Q17 Y/Y FY17 Y/Y
CBTS 83 -13% 362 -16%
OnX(1) 150 - 150 -
Total Revenue $233 n/m $512 19%
CBTS 4 -43% 25 -36%
OnX(1) 8 - 8 -
Total Adj. EBITDA $12 49% $33 -17%
CBTS 6% -35% 7% -24%
OnX(1) 5% - 5% -
Total Adj. EBITDA margin 5% -39% 7% -30%
FY17 Segment Revenue Elements
Professional
Services
-16% y/y
Management &
Monitoring
-34% y/y
Unified
Communications
6% y/y
Cloud Services
flat
Telecom & IT
hardware
-21% y/y
OnX(1)
Business
Description
• Expansion of geographic footprint and addressable
market beyond Cincinnati to accelerate momentum
in IT services
Closing • Closed on October 2, 2017
Page 12
• $201M in cash1
Acquisition of OnX Enterprise Solutions
12
Growth
Opportunity
Transaction
Size
• OnX provides industry-leading technology services
and solutions to enterprise customers in the U.S.,
Canada and the U.K.
Expected
Cost Synergies*
• ~$10M annually
*To be realized within two years post-close, and excluding
potential revenue synergies from cross-selling opportunities
1. The acquisition of OnX, originally announced on July 10, 2017, indicated that the purchase price of $201 million was subject to customary post-closing adjustments. Total cash consideration for the acquisition was $241.2 million, including payments for working capital adjustments, as of December 31, 2017.
An additional $2.6 million for additional working capital adjustments is pending.
Source: Company Filings
Completed Acquisition of OnX in 4Q17, Creating A Leading North American IT Services Provider, and
Dramatically Transforming IT Services Business Runway for Growth
4Q17
Contribution
• $150M in revenue
• $8M in Adj. EBITDA
Key Technology Partners / Certifications
Offices
20+
Offices
2,000+
Customers
Page 13
Free Cash Flow Performance
13
Net Debt
Change in Working Capital/Other
1. Calculated as net debt divided by 2016 Adjusted EBITDA
2. Calculated as net debt divided by 2018 Adjusted EBITDA Guidance (mid-point)
3. Includes decommissioning of wireless towers
4. Dividends received from investment in CyrusOne (equity method investment)
($ in millions)
3.9x
Net Leverage(1)
4.1x
Net Leverage(2)
2017 Free Cash Flow
OnX contributed $13M of positive FCF in 4Q17
$1,197 $1,351
4Q16 4Q17
-$44
2016 2017
YTD Y/Y
2017 Change
Adjusted EBITDA (Non-GAAP) $303 ($3)
Interest Payments (66) 5
Pension and OPEB Payments (12) 1
Stock-based Compensation 6 1
Restructuring & Severance related payments (29) (28)
Transaction and Integration Costs (16) (16)
Cash used by discontinued operations(3) - 7
Income tax refunds, net of payments 13 15
Working Capital and Other 4 48
Cash Provided by Operating Activities (GAAP) $203 $30
Capital expenditures (210) 76
Restructuring & severance related payments 29 28
Preferred stock dividends (10) -
Dividends received from Investment in CyrusOne(4) - (2)
Cash used by discontinued operations(3) - (7)
Transaction and Integration Costs 16 16
Free Cash Flow (Non-GAAP) $28 $141
$4
Page 14
Capital Expenditures
14
Capital Expenditures
Total $210 -76 $190 - $210
• 2017 CapEx in line with high end of
guidance range — down $76M from the
prior year
• Invested $125M in Fioptics in 2017
• Passed an additional 38,800
customer addresses during 2017,
exceeding target of 35,000
• Accelerated purchases in 4Q17 to
capitalize on purchase and volume
based discounts— expect savings of
approx. $24M over the next few
years
• Other strategic represents success-
based capital for fiber builds for
business and new IT services
projects
• 2018 CapEx guidance reflects Fioptics
build target of 35,000 new addresses
FY 2017
Actuals
Y/Y
FY 2018
Guidance
Construction $54 -36 $35 - $45
Installation 55 -13 45 - 50
Value Added 16 -6 15
Total Fioptics $125 -55 $95 - $110
Other Strategic 44 -18 55 - 60
Total Success-based Investments $169 -73 $150 - $170
Legacy Maintenance 41 -3 40
($ in millions)
Page 15
2018 Outlook
15
2018 Guidance
Revenue $1,200M – $1,275M
Adjusted EBITDA $320M – $330M
Impact of New Revenue Standard
($ in millions) 2017 2018 (Guidance)
As currently presented $1,289 $1,700 – $1,775
Impact of new revenue
recognition
($224) ($500)
As Adjusted $1,065 $1,200 – $1,275
• Revenue guidance reflects adoption of new
revenue recognition standard
• Telecom and IT hardware sales will be
recognized net of product cost
• Guidance does not include any contribution
from the pending merger with Hawaiian Telcom
Selected 2018 Free Cash Flow Items
Capital Expenditures $190M – $210M
Interest payments $115M – $125M
Pension and OPEB payments $15M – $20M
Page 16
2018 and Beyond
16
Consumer
• Fioptics is available to 572,000 addresses - approximately 70% of Greater Cincinnati
• 53% are able to receive gigabit speeds
• 17 % are able to receive up to 50 mbps
• Remaining operating territory capable of receiving DSL speeds
Business
• 50% of commercial units have been updated with fiber
Carrier
• Provide wireless tower backhaul services to approximatively 70% of 1,000 towers
• Provide fiber to 250 small cell sites
Entertainment & Communications IT Services and Hardware
Strengthening North American platform
Segment reporting changes to align with our broader strategy
Enhanced Strategic
Focus and Flexibility
Two distinct, complementary lines of business with separate financials,
reporting and organizational structures
Enhanced scale and expanded portfolio of complementary
IT offerings to win larger, multi-faceted deals
Practice Products
Cloud Services
Monitoring & Management,
Virtual DC, Cloud Consulting
Communications UCaaS, SD Wan, NaaS, CLEC Services
Consulting Services
Professional Services Program, Application Consulting
Services
Infrastructure Solutions Hardware/Maintenance
Continued investments in high speed, high bandwidth fiber
network to increase our market penetration
We are focused on investing where we are winning
Fiber continues to differentiate Cincinnati Bell from
traditional carriers
Pending merger with Hawaiian Telcom expected to close in the second half of 2018
Transform to become an international
hybrid cloud services provider
Further streamline operational and financial systems and organizations
Page 17
Appendix
Page 18
18
Consolidated Results
($ in millions, except per share amounts)
2017 2016
Revenue 427.1$ 285.3$
Costs and expenses
Cost of services and products 278.5 161.6
Selling, general and administrative 74.3 53.8
Depreciation and amortization 52.9 47.5
Restructuring and severance related charges 3.5 11.9
Transaction and integration costs 4.1 —
Other 4.0 —
Operating income 9.8 10.5
Interest expense 30.3 17.6
Loss on extinguishment of debt, net 3.2 4.8
Gain on sale of Investment in CyrusOne — (5.1)
Other expense (income), net (2.1) (6.4)
Loss from continuing operations before income taxes
(21.6) (0.4)
Income tax (benefit) expense
(5.4) 1.2
Loss from continuing operations
(16.2) (1.6)
Income from discontinued operations, net of tax — 0.3
Net loss (16.2) (1.3)
Preferred stock dividends 2.6 2.6
Net loss applicable to common shareowners (18.8)$ (3.9)$
Basic net loss per common share (0.45)$ (0.09)$
Diluted net loss per common share (0.45)$ (0.09)$
Weighted average common shares outstanding (in millions)
– Basic 42.2 42.0
– Diluted 42.2 42.0
December 31,
Three Months Ended
Page 19
19
Consolidated Results
($ in millions, except per share amounts)
2017 2016
Revenue 1,288.5$ 1,185.8$
Costs and expenses
Cost of services and products 761.3 678.9
Selling, general and administrative 240.9 218.7
Depreciation and amortization 193.0 182.2
Restructuring and severance related charges 32.7 11.9
Transaction and integration costs 18.5 —
Other 4.0 1.1
Operating income 38.1 93.0
Interest expense 85.2 75.7
Loss on extinguishment of debt, net 3.2 19.0
Gain on sale of Investment in CyrusOne (117.7) (157.0)
Other expense (income), net 1.4 (7.6)
Income from continuing operations before income taxes
66.0 162.9
Income tax expense 30.9 61.1
Income from continuing operations
35.1 101.8
Income from discontinued operations, net of tax — 0.3
Net income 35.1 102.1
Preferred stock dividends 10.4 10.4
Net income applicable to common shareowners 24.7$ 91.7$
Basic net earnings per common share 0.59$ 2.18$
Diluted net earnings per common share 0.58$ 2.18$
Weighted average common shares outstanding (in millions)
– Basic 42.2 42.0
– Diluted 42.4 42.1
Twelve Months Ended
December 31,
Page 20
20
Strategic Legacy Integration
Data Fioptics Internet
DSL (1) (> 10 meg)
Ethernet
Private Line
MPLS (2)
SONET (3)
Dedicated Internet Access
Wavelength
Audio Conferencing
DSL (< 10 meg)
DS0 (5), DS1, DS3
TDM (6)
Voice Fioptics Voice
VoIP (4)
Traditional Voice
Long Distance
Switched Access
Digital Trunking
Video Fioptics Video
Services and Other Wiring Projects Advertising Directory
Assistance
Maintenance
Information Services
Wireless Handsets and
Accessories
(1) Digital Subscriber Line
(2) Multi-Protocol Label Switching
(3) Synchronous Optical Network
(4) Voice of Internet Protocol
(5) Digital Signal
(6) Time Division Multiplexing
Revenue Classifications – Entertainment and Communications
Page 21
21
Strategic Integration
Professional Services Consulting
Staff Augmentation
Installation
Unified Communications Voice Monitoring
Managed IP Telephony Solutions
Maintenance
Cloud Services Virtual Data Centers
Storage
Backup
Monitoring and Management Network Monitoring/Management
Security
Telecom & IT Hardware Hardware
Software Licenses
Revenue Classifications – IT Services and Hardware
Page 22
22
Revenue – Strategic, Legacy and Integration
($ in millions)
Entertainment and
Communications
IT Services and
Hardware Total Eliminations Total
Strategic
Data 69.5$ $ —
Voice 23.2 —
Video 38.2 —
Services and other 0.8 —
Professional Services — 41.3
Management and Monitoring — 5.5
Unified Communications — 7.4
Cloud Services — 17.3
Total Strategic 131.7 71.5 203.2 (2.2) 201.0
Legacy
Data 18.8$ $ —
Voice 42.6 —
Services and other 3.1 —
Total Legacy 64.5 - 64.5 (0.3) 64.2
Integration
Services and other 0.8$ $ —
Professional Services — 3.2
Unified Communications — 3.3
Telecom and IT Hardware — 155.3
Total Integration 0.8 161.8 162.6 (0.7) 161.9
197.0$ 233.3$ 430.3$ (3.2)$ 427.1$
Eliminations (0.4) (2.8) (3.2)
Total Revenue 196.6$ 230.5$ 427.1$
4Q17
Page 23
23
Revenue – Strategic, Legacy and Integration
($ in millions)
Entertainment and
Communications
IT Services and
Hardware Total Eliminations Total
Strategic
Data 269.1$ $ —
Voice 87.7 —
Video 149.2 —
Services and other 9.0 —
Professional Services — 95.5
Management and Monitoring — 21.1
Unified Communications — 29.1
Cloud Services — 53.5
Total Strategic 515.0 199.2 714.2 (9.2) 705.0
Legacy
Data 82.5$ $ —
Voice 179.6 —
Services and other 10.6 —
Total Legacy 272.7 - 272.7 (1.2) 271.5
Integration
Services and other 2.2$ $ —
Professional Services — 19.1
Unified Communications — 13.2
Telecom and IT Hardware — 280.3
Total Integration 2.2 312.6 314.8 (2.8) 312.0
789.9$ 511.8$ 1,301.7$ (13.2)$ 1,288.5$
Eliminations (1.7) (11.5) (13.2)
Total Revenue 788.2$ 500.3$ 1,288.5$
FY 2017
Page 24
24
Revenue – Strategic, Legacy and Integration
($ in millions)
Entertainment and
Communications
IT Services and
Hardware Total Eliminations Total
Strategic
Data 63.5$ $ —
Voice 19.6 —
Video 33.6 —
Services and other 1.8 —
Professional Services — 20.9
Management and Monitoring — 7.9
Unified Communications — 7.3
Cloud Services — 13.3
Total Strategic 118.5 49.4 167.9 (2.4) 165.5
Legacy
Data 22.9$ $ —
Voice 47.4 —
Services and other 2.8 —
Total Legacy 73.1 - 73.1 (0.2) 72.9
Integration
Services and other 1.4$ $ —
Professional Services — 5.9
Unified Communications — 2.4
Telecom and IT Hardware — 37.8
Total Integration 1.4 46.1 47.5 (0.6) 46.9
193.0$ 95.5$ 288.5$ (3.2)$ 285.3$
Eliminations (0.3) (2.9) (3.2)
Total Revenue 192.7$ 92.6$ 285.3$
4Q16
Page 25
25
Revenue – Strategic, Legacy and Integration
($ in millions)
Entertainment and
Communications
IT Services and
Hardware Total Eliminations Total
Strategic
Data 244.5$ $ —
Voice 73.4 —
Video 125.7 —
Services and other 5.9 —
Professional Services — 89.2
Management and Monitoring — 32.0
Unified Communications — 29.4
Cloud Services — 46.5
Total Strategic 449.5 197.1 646.6 (9.1) 637.5
Legacy
Data 100.3$ $ —
Voice 201.6 —
Services and other 11.7 —
Total Legacy 313.6 - 313.6 (0.9) 312.7
Integration
Services and other 5.7$ $ —
Professional Services — 17.5
Unified Communications — 10.4
Telecom and IT Hardware — 205.7
Total Integration 5.7 233.6 239.3 (3.7) 235.6
768.8$ 430.7$ 1,199.5$ (13.7)$ 1,185.8$
Eliminations (1.3) (12.4) (13.7)
Total Revenue 767.5$ 418.3$ 1,185.8$
FY 2016