CBB - Earnings call transcript Q3 2018

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Operator

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.

Josh Duckworth

Thank you, and good morning, everyone. third earnings Bell's Cincinnati to quarter call. XXXX Welcome today President and and me Chief on Executive our call the Kaiser. Fox; With Chief is Officer, Officer, Andy Financial our Leigh and comments provide with Leigh's Telecom. recap will our Hawaiian an on the today update merger highlights will on segment financial additional results detail provide then and Andy our position.

Tom Chief for prepared Operating portion question-and-answer Following the join the will remarks, of the Officer Simpson, our call. Andy Leigh and

call would presentation are me let you our slides remind Relations for and Today’s at recorded today’s listen on Before is we start, it website. posted press that future Investor like our being release time. to a call if to you

XXXX. reminder, performance Hawaiian As quarter three include Telecoms third as month closed financial merger of X, a the results July on

services statements. the of quarter accounting revenue sold IT result, was also changed infrastructure complementary distinct following segment and the comparable within various In being Cincinnati remarks with is strategic XXXX, to standard Cincinnati cost-of-goods morning, and restated SEC, reminder, More such revenue forward-looking information periods results align this or to effective Form will release reported in XXXX our X, statement. entertainment this our its issued hardware available also indicated XX-Q Company’s of new that, was most net services introduce as reporting Slide Harbor in sales the investments; solution I'm previously With segment, which Fiber solutions of and financial presentation Form are Cincinnati information. the measures. infrastructure uncertainties in Form by comparability. a Executive be this a long-term to President are on following earnings contains addition the Chief strategy recurring communications, and on Due building prior XX, to Annual hardware is the and as Quarterly website. sales. now directly XX-K on these from also Also, with Bell three our X-K communication cloud, our telecom as reports, materially of business. is Legacy. or The in and Consumer/SMB January and GAAP including reported non-GAAP differ IT Slide the market, and categories risks is our now outcomes in In pleased risks Bell's and uncertainties, discussing suggested certain the for available reported we the Noted first the practices; consulting to referred to to of X with measures Leigh may reflect potential forward-looking Fioptics Bell's segment Officer, any lines those To Safe Cincinnati in two actual on filings our morning Presented also reports. of and recent Fiber Enterprise the report, non-GAAP fiber strength referred as and Reconciliations success Fox. measures highlight

Leigh Fox

us Good for you, Thank today. joining everyone. Josh. morning, Thanks

accelerating needs demand a Cincinnati Our advance capitalize IT the next-generation Bell's of the and service-based provider ecosystems. an to to metro support the It our for illustrates high-quality assets success third on our strong XXX growing fiber year demonstrates our meet to products. increase IoT history performance also and lift as plus ability expanding quarter for communications

Adjusted totaling strong Telecom's prior which to EBITDA compared quarter X. for with million close Hawaiian Hawaiian of X% the third prior on adjusted million $XX $XXX includes million was the illustrated increased July As Slide revenue generating Telecom on a third the merger result of quarter the EBITDA totaling with quarter $XX was revenue that $XXX X, consistent million. consolidated quarter.

up the segment and Our prior million $X million contribution to increased including Revenue OnX. acquisition EBITDA compared also was of impacted. hardware $XX the from adjusted were results services year IT and

magic This long-standing Our as across recognized generate recognition worldwide. our for American is well expanded understanding an serving unified agile, determining commitment for expected communication trusted provider customers. effective for UCAAS cost as demonstrates footprint, network North quadrant configuration with opportunities a business a a notable IT XXXX us additional to recently further and provider the announce, scalable our service to our and CVTS delivering Gartner this is of solutions when services I'm reputation as excited to

Hawaii our Moving and to Internet and unique And continues our bandwidth early producing competition. business, high-speed capable network for solution of in Cincinnati created to regional fiber entertainment has accelerate company's decision our both business higher faster communication the demand to continually speeds Internet accelerate.

were to continue These received fiber to is rates additional our As premise businesses additional approximately node the to the neighborhoods occurring to fiber fiber reaches stations only funding to the Hawaii $XX Similar addresses provide to with XXX,XXX capital penetration I fiber to and the XX% evidenced, majority Internet pleased has million XX% the deployed. been share. to where XX% the That the Cincinnati our in island homes in neighbor investment the compared be of premise In fiber where more Hawaii reaching opportunity next in Hawaii. available also premise Similarly addressable total with of awarded rates funds of over to total XX% relative to than node. the with fiber premise am fiber penetration and were years. footprint XX% currently the concentrated Internet Internet Cincinnati’s said, homes state as expand the has XX cash throughout market. of and Hawaii, market fiber us announce to been deployed on XX% Cincinnati businesses we in in

expectations penetration. lead in are are track our models and on which optimizing overall Hawaii times. with well underway communize experience on by fiber on increasing sales efforts installation and to Moving and integration operational efforts focused construction X, focused with To immediate we remain this, Slide efforts the accomplish customer improving internet of

on and improved the and to year. footprint. confident expanding had our addition, growing service are will quarterly Hawaii’s to sensor fiber our enhancing we In opportunities success ability are contact about operational Hawaii call by demand encouraged our in who and to outlook our performance performance the The turn for combination a are results. our Telecom positions our over recent by the quarterly operational and fiber adding the capitalize fiber in and services market. center we IT interactions. through scale will across We excited the the financial to financial Hawaiian for us streamline replicate in Andy with now remain walk you Hawaii customer I

Andy Kaiser

performance with totaled EBITDA revenue entertainment $XX Starting Leigh. on quarterly $XXX generating million. adjusted X, million our Thanks and Slide of segment communications

our During revenue million the EBITDA X% communications of for with of Fioptics $XXX of Telecom the revenue X. a our results. Cincinnati contributed illustrated quarter, video to million compared Hawaii as on by year growth X,XXX and DSL on to subscriber in decreased metrics as million segment of base less $XX Cincinnati, subscriber emphasis In ago more we than growing we and increased focus entertainment offset in year-over-year as declines. an Internet our $XX shift Slide total internet count adjusted

with preference increased to from added due with subscribers increase base. the our to quarter, programming X,XXX previous as rates with increased XX% focus Internet during and the consumer quarter X% video and the penetration and towards the quarter up shifts subscribers penetration fiber Hawaii year-over-year. year-over-year relevancy remain on a In to $XX. $XX for worked subscriber the at was the ARPU we X% holding the prior Video we the quarter our par of end $XX. node Fiber XX% Internet of declining consistent with we toward subscribers Video ago was over year rate achieving with an $XX. both offering. ARPU Internet Internet Cincinnati. Fioptics as from SMB XX% year growing on X% of internet decreased SMB was top in penetration in the customer ARPU third Cincinnati fiber rate During quarter Hawaii of Video penetration ARPU an At consumer

contribution up $XX million a were Telecom. to on higher year year the X% generating contribution Adjusted revenue $XX primarily the ago. $XX to EBITDA hardware year Billable compared due totaled last increased up Compared second up Hawaii excluding Turning quarter $X X% consulting revenue million from services IT revenue. was to quarter Slide the million this from to of X acquisition. million OnX resources from and sequentially for

on revenue. noted recurring drive demand robust a XX Slide UCAAS, As for significant continues to SD-WAN NaaS and

we quarter increased respectively. XX% location NaaS the and by During XX% and SD-WAN

America. raising success We quarter illustrating also North added during these X,XXX hosted you the UCAAS profiles further total XXX,XXX throughout products in cross-selling the to our

the the quarter XX on slide both flow times to on of current supports we flow transactions XXXX outlined free generate cash growth ended for we $XX in year. positive net that debt net strategy. remain million the billion with confident nine resulting prior long-term first With We and total cash leverage free consistent capital X.X As track the with for of quarter. remain our of our structure $X.X closed months

As presented and XX including fiber up were products of new third XX% of $XX to also resident $XX the forecasting product Statewide the available from capital and Hawaii to node be of $XXX Hawaii communicated $XXX anticipate includes of of Cincinnati XX,XXX available the third million which $XX including quarter Telecom end Hawaii fiber $XXX a the million Hawaii estimate year-to-date on in the on Telecom. in Fioptics and Hawaii. or combination homes capital million Suite XXXX for passing XXX,XXX SMB the includes investments Slide is construction the the to fiber in fiber million have of in for Capital more expenditures totaled passed cost premise quarter than addresses for at originally of XX% $XX million to is products Cincinnati. year. homes million. addresses combination and suite now XX% now fiber a of million Year-to-date been consumer Greater we to We to which approximately addresses during the were expenditures businesses Fioptics had lower we the to or a our XX,XXX the of premise XX,XXX. including our with are businesses Fioptics node XXX,XXX

and remained efficiently to we value. in maximizing are confident Our capital our shareholder strategy are allocation consistent key and expanding network fiber that has Cincinnati Hawaii

that Leigh closing are Slide the I quarter our revised account will call reaffirming Hawaii now X. to earnings our July into turn Telecom financial during to guidance merger comments. XX on closed back which the second some XXXX for Turning call we with provided takes

Leigh Fox

is the communication densest transformational will distinct very towards be months approximately am miles made In accelerate. business. value Bell. in as have IT the scalable market we entertainment broadband to with growth With diversified merger provider transition fit. a is Hawaii locked American XX,XXX markets shareholders XX fiber quickly profile our industry. services of for UCAAS our reseller have and by route notable has segment to demonstrated two I building been lines faster across the to Last a great In a ability improving differentiator segment Thanks service proud we've our Gartner for fiber North IT in customer just speed the provider Andy. base. our a within fiber progress of recognition demand effectively hardware key traditional density the Cincinnati two a Telecom our And recent solutions' oriented for data continues our

We on are heavily focus scale high and continued new revenue. to services and the our momentum with footprint margin growing pleased our we'll continue

As always move and to to are ahead. remain invest where continue we winning will confident we

to We shareholders open will operator the up turn customers. maintain and deliver approach order for Q&A. now in to allocation the our will to and long-term a over value call I disciplined capital

Operator

with our first UBS. take question from And we’ll Please Levi go ahead. Batya Instructions] [Operator

Batya Levi

or Can you room is portion, rate new And slow. for second going talk that's baseline about the on bit Hawaii. forward? run continued maybe given focusing you improvement footprints Bell on of Do Cincinnati is and to this just sort broadband dynamics the think maybe question there competitive little a

what's you footprint, maybe the talk forward for about this of year? look the you should As guidance how going low can we driving you. end CapEx think expand Thank to fiber about and

Leigh Fox

Hawaiian then it the answer the first to Andy part hand I'll second over CapEx. and on I'll part to answer

of focus just vanity call the trying on remind the adds chasing focus combination we prior we on of want right you scenario. everyone We're have we kind begun internally - sub right the stated just not I see broad the to think subs, end metrics. really calls, what a ARPU. Cincinnati So on that footprint to type And and sub in I the to in

the We subs. have towards we're right driving ARPU and type continue to of strong

which is still strong that all aren't VDSL we seeing our combination and that think we available momentum. fiber have And and legacy that that the great customers. I of areas. in XX% is We're seeing that and good is for - quickly part are footprint, approximately are of our with become Cincinnati. VDSL said VDSL return adds enough of shows what And the the very footprint, increased us speeds where environment our

to leads And for We think we hear that's what leaves to over Andy And that And so I cash subs of spend people the the we ways CapEx us lower we're subs, in as in on for very right right and that you'll sure we attract type cash CapEx. side. of less because possible. stronger subs amount cycle from right in us CapEx we're efficient mind the more is it's which - flows. a driving in build making with our tracking subs, stronger most way what when flows, the then or that virtuous right the part leads efficient right

for second to over it hand part. I'll that, with Andy So the

Andy Kaiser

Leigh. Batya. Thanks, Hey,

in the of footprint - are the lower guiding XXXX. for why CapEx Hawaii, think we was the fiber your So other I part end question of towards regarding

I'll XX% with first in mentioned the Oahu So, is with of fiber. Hawaii. We start past, covered

However, significant opportunity we cap also not still we only end the in of on but footprint like the continue at front that the call, Leigh Cincinnati neighborhood secured. grow funding well. mentioned Oahu the as have X to on that

Hawaii obviously in with that helps in the So us neighbor build islands. ongoing the

As an why as becoming this, a plus, we in that capital at end mentioned the HSI probably We're it capital. more the indicated incremental on low XX,XXX fact at the end front able doors We towards to example, and self just up of now we're efficient quite install probably as And installs. going will be the CapEx, that relates more we're guidance. trending we $XX,XXX lot year free focus the the end. to to continue on we're low still Leigh to at We are had that's up. of coming open opening

are which So it's deploying by we really all now about the efficiency capital.

Operator

America take our And Lynch. Merrill David go Barden from Please we'll question next ahead. Bank with of

Unidentified Analyst

there? Batya's on to going of the fiber competition And up reason Josh following subs in subs up, the that node fiber the guys do Just but question, market, you the that between any is then just there And just of what of kind give update real doing competitiveness in your anything don't think can in shift wireless of Dave. as two? Is a a with fixed Thanks. the I second, that, a potential on it's quick product on to as wireless the are view see for is the yet, threat? prem Cincinnati? and down you going

Leigh Fox

So going driving I is I'll really when competitions answer not speeds, megs, it. to the piece. meg VDSL, XXX is megs just it's that offering XX on XXX of guess and your is megs, your they're decline just question the Honestly up lower XXX to product competitive cut what's a baseline VDSL.

think product. honestly be a good on at legacy it's Honestly VDSL And shift so of not can know sort market, but VDSL is earlier a but to obviously the struggling - in our I very DSL also compete that's that why with that's to to I not where they're product minds prem, the they of they product. really mentioned more only with that fiber compete in call targeting a our VDSL got DSL

what higher a product. both baseline Competition So much and than VDSL that's offers the product really main the DSL driver. that's

side our the to shift we you're superior prem, on are where seeing turn coming that to so the offer. all higher product fiber are to adds and is And the which

competition you're mean the fairly by better. hasn't changed fact competition. price I seeing environment gotten it's been in So the consistent on the really but it's competitive slightly increases

but competitive competition We're increasing environment. for the fighting it's past, with I in So this changed always say in subs competitiveness a mentioned as we hasn't years. constantly been the five - but in would

been So that And we I'm then of see Tom, answer hand more fixed than lead a since it nothing over going I'm positive major to would call opinion. of on to side. the And been that competition going me the movement wireless, give you has to his give not to price there's changed last then on to brief some the anything honestly shift. believe it's a because

As it coming the you stands has wireless today that no announced carriers into market. mentioned, as they're

doesn't in it's one of spectrum In pretty augmentation nice with fact that's fixed own analyzing to announcement we a Ohio. I'll wireless. over it not been currently a Personally the but hand the believe it's We're carrier impact mobile aggressive obviously replacement And product. on that Tom.

Tom Simpson

available fixed spot wireless providers that in spectrum we're Yes, on of we’re pleased major have currently are is up - true Hawaii two the auction statement. the the spectrum blocks that There watching. points for doesn't that,

dense viability that really homes fleet opportunity augmentation. mile, wholesale as talking areas. the or and there's XX highest a north As per XX of far that's threat, at than some more the it's the look mobility as mentioned We're of Leigh really

that a which standpoint to shift basis going from of revenue as support. lower a a well wholesale, I As cost bit as threat see to is potential for our from really retail

Operator

ahead. And Sergey our GAMCO from Investors. with Dluzhevskiy Please go question take next we'll

Sergey Dluzhevskiy

Could maybe - sounds integration But you're you competitive since going learning's bit in that environment operations diced early both what about up charter you that a in from in markets? Hawaii remarks. talk and high little process the against opening it maybe

Leigh Fox

well. very Honestly it's going

you but EBITDA revenues one net model, I and that was think is revenues one I actually us adjust which want of I of EBITDA early models issues report down comment think your did some on heard I analyst the to gross to comments is the revenue up. taking I such some on, revenue, think Honestly hard up. for was in if Hawaii hardware that were to

going So better. And things or going as very expected well. are

they're and integration, both the On the as great financially integration We've made trends. operationally. going side progress with same expected

the revenue we're right shift, and financially on EBITDA. you Wall in growth I think slightly Street probably the So, I on net up models or adjust if think

Tom to want So anything? comment you on

Tom Simpson

that’s as unearth No in office There the enterprise opportunities right. back and hardware or integration market really on has or well permissions. as services exactly in been is care focus the IT customer

Leigh Fox

Yes, similar. side the composition on is very on competitive the the front consumer

deal. between I to shift on see mentioned similar lot a side think business than very in I kind thought just going emphasis of we the slight for of we’re originally And [SFU] the fact the business on Tom more environment and it’s well-positioned the compete. as except opportunity in had MDU into a think front so we very

Andy Kaiser

nine able QX of you When was in in We improved this line - EBITDA at to in X from come quarter-over-quarter and were there look perspective. the million. an decline quarters we’ve consecutive quarter course of then by

So of underway come you're activity the seeing through obviously all financials. the

Leigh Fox

That's Andy’s not is we subtle stabilize the gloom and and way to that predicted able saying of the happening. we was everyone that way could. We've doom by shift and been that business hope

Sergey Dluzhevskiy

questions And side. the a IT couple on services

a right? So IT you contribution mentioned just that believe I about revenues that a Hawaii XX clarification million from of is was services

Leigh Fox

Yes.

Sergey Dluzhevskiy

And from the that was EBITDA to what contribution Hawaii segment?

Leigh Fox

I XX%, it’s mean million, to minimal. I its take minimal mean very XX

Sergey Dluzhevskiy

picture guess services. I for perspective And from a bigger IT

and If was this rates what a rates within the you shows lines growth? product that you various over most years your and and in the services and look promise how in few opinion the you to gross about it general will longer-term business contribute have division should gross think products mix at next the segment

Leigh Fox

question. great Yes,

communications the kind - a service. would in say as a seeing promise I growing communication mentioned lot of area we’re practice. that obviously of that we are Gartner answering today seeing the We backwards, the our most So success

in cloud front consulting. success We’re the on seeing

traditional I backlog. practice as is We’re think on kind one bar seeing see mix it of in. more to development you infrastructure probably growth about that as with don't little transitioned as more practice people success the of the development we’ve front The any do

probably That but the over think that I few we'll you're the that. practices time in that’s have bars one customers decline business some customers struggle, see be in think and steady are some around within that we great at still even that And we’re complexities just that the with a that practice. see said, will paper customer migrating legacy have products large to those headwinds, we be fact from through. support legacy still going customer then relationship our we an I lot going as obviously a the noted impact think may I well got to

flush So months through I all business the flushing yet. through that the XX for see hasn’t XX months. business to wouldn’t another XX it

of having. of and a globally, and kind grow you new and North as the of we’re as transitioning through American business build So, transition some we’re that customer through the also all some part legacy we stuff issues

it’s So moment. seeing good transition, interesting growing but is of news an be its we’re a and going ton the to

be So in a it's just maybe factors. some of a those little short-term to messy see it the going long-term lot because just of we of

Operator

ahead. from Arun we'll take Suisse. Please go with Seshadri our And Credit question next

Arun Seshadri

do from on First you wanted what standpoint a maybe can IT sense think and just hardware, services and an start can get to for get you aspirational you margins there? to

Leigh Fox

company As we’re into the a and good services mix pretty larger shifts base services today.

selling One it of the as compresses that issues specially with seeing cost of we’re and that as deliver. high because you’re margin adding in decent you’re your to growth way high-growth services, you're selling amount to cost a you're deliver adding the selling

seeing the into shift, XXs you're what the potential low would thoughts the going I margin aspiration that view as that. say high of say teens So for compression would the aspirationally little there your is getting Andy I versus on while. are but mix given a maybe mix the to aspirationally in to

Andy Kaiser

pressures and Leigh growth continued in other which help move But low margin aspirationally it, legacy and probably looking so teens. low the we talking expand what specific there's assuming growth a communications I’ll stack. we the to. and looking whole we’re we’re just will is which put Well to teens, probably given mentioned, are obviously in anticipate there's point to I'm of and lot EBITDA there that the up decline margins We you're Leigh the referring as numbers happening in

Leigh Fox

half finance Now CEO’s full of difference the finances, guidance view Arun the now between you've last last the half aspiration. seen in empty

there's those good targets and two lot so of closer There parts business from of a and - encouraged moving definitely views. lot would we’re I shift a even to say its that - is a going but it on. we’re can is you but really by read tailwinds monitoring So look there

So of things. lot a positive

Arun Seshadri

wanted EBITDA the Just investment should through how of of go margins the bottom top low standpoint cycle? the expect for low to a transition - you get the I we that’s how as to sense go modeling the guess

Leigh Fox

mean I why you lower I going know take don't don’t one, much from get but transition this to they’re a standpoint. that

Andy Kaiser

Again - you we’re across talking or… business are the Arun consolidated across talking

Arun Seshadri

IT Just services.

Andy Kaiser

don’t they at think likely significant over But we'll I Okay. again I could sustained but the with see of compression any customer the anticipate real XXXX it’s course customer I margin Leigh's ours, we impact. couple of in margin Leigh next impact think teen don't comments see of a that the regarding with just large settle pace on was that large referencing. there be a a that a which depending years. dip the in the to upon really low we be are

Leigh Fox

customer with we’re a now There and lot that closely. it are unknown right monitoring very

with they’re relationship good negative and monitoring as closely could really a have negative them, positive very the We you imagine. but we’re

Arun Seshadri

inorganically question debt sense plans reduce Xs to trying for it are any just your the do how sort or on and you Thanks. mid today with a the focus you then near-term? And comfortable leverage just in to high like related, leverage stands of in a any where have broader

Leigh Fox

a it’s great question. Yes,

because in in. think where industry I of we sit the we sit

play a pure because look levers you to what guys. and disadvantaged from growth their invest fundamentally providers somewhat come if We’re fiber standpoint I think at

you but part positive of the basis our that kind of the we what side of in business an the business business we’re legacy in are annual growth our on investing that growing obviously rates, nature fiber, legacy where of we’re On those growth the our see growing similar fiber. of from by compressed shrinkage and the side compression see rates versus

So much have is faster because much the different growing should internally winning. we’re we we and really, faster arguments be growing could be disadvantage we

in the to industry it thing that the leverage holds is prem investing management equity. deal, a had profile honestly that deal is and is balance major fact that our but big us in our and we’re on and debt leverage winning, a that a back We’re impact the of the the big the sheet

And type of cycle debt the so standpoint. metrics of vanity managing ways right very conscious the in I about look customers, managing down if not we're of earlier, this as sheet, from because we're organic looking call chasing and brining balance constantly and you of in whole And at we that think mentioned at the can so Tom others see metrics, would is impressed sub, very what I that really because wrong the underneath grabbed good capital, EBITDA, and subs, you partly go But we've sub they you numbers. what my cash. and is increased decreased as be with after then our And does could all right. an sub right. have see that And decreased a

to lower of a lower a have those come every return. subs because those the all spend subs of subs a at ARPU. after in one you Some those lower subs. had them may ARPU never going grab money pay of we've some us, And at And

to the trying the can about them, in future of that amount drive investment you're to of the we're cash while who we balance hearing both us get manage add what we of right so part So in that's growth order sheet. in fiber amount is, managing delicate and a balance. And we're very the honestly capital, we how right add, incredibly say efficient

to sector where there right the important so the is of our nature factor equity. what that in understand sit a ecosystem do are large major and And we impacting have now. again that opportunities that's but is and fact And the to part it of in we we're a balancing it's

Operator

from our question Please ahead. take next Morgan go And Flannery Simon with we'll Stanley.

Unidentified Analyst

taking for the for Spencer thanks it's Simon, Hi, question.

backlog what's spends restructuring then Can synergies Just for magnitude a integration couple any or your Thanks. would us that change and next And give or outlook to the in time XXXX? for from achieve? ones. be original on targets of terms year, of versus you a related flat quick down

Leigh Fox

we're and with So say $XX on actually well question, acquisition. as identified HCOM the we $XX.X on actually merger, we overachieve. And you I recall with identified and million achieve track to the we first absolutely million would are way, on your our OnX

that on more with mentioned half to achieve the And the continually So there, I $XX.X more that can. way of have always And By laid we out. same mentioned true businesses end million closely there and we're Leigh as the we as absolutely I the looking opportunity significantly watch a are certainly, we efficient million, the of over holds to as be remainder than structure halfway moment identified. fully always we than there. - $XX regard. both achieve run will just the that XXXX, have OnX, the ago, the again we and and in think

So to that drive out. we'll continue

So us really ongoing allow be sometimes terms of will but talk more and beyond. efficient in to in we XXXX activity synergies

Unidentified Analyst

integration then going on forward. And spend

Leigh Fox

Absolutely, then the integration - be if heavy most pretty light of off spend Most integration spend, of tailed the integration tails very integration it in becomes integration will the the it's off. any. spend, immediate initial spend much and

see So amount. you like shouldn't huge

Tom Simpson

you've won't anywhere near the year. seen some see what year it flow this You'll be but through

Unidentified Analyst

XQ? seasonality CVTS, quarter bit than in better revenue then you the fourth in guys little typical And on are you'd expecting see is a

Leigh Fox

of kind budget all anyone fees put purchases on sit one-time are sales. end in year but and our on change we customers. sales based yes, of harder that one-time is But by I nothing again would predict. I absolutely, to But my the now lot obviously front view right driven that. today as end of of And Yes, of that mean me by those a here that it's see -

Operator

question last with our is ahead. Jennifer Please go today And Fargo. Wells from Fritzsche

Jennifer Fritzsche

under stock of mentioned misunderstanding this the strong I structure. you capital making clearly new more. of them, early in about still explore incoming this inquires track mean, trying pressure. you feel thinking thinking the is about but guess How to assets, seems fairly this there Do this to you you the are IT The them is thinking then and there way you. even interest? ask just something wanted on early you, like I this? I'm you - little selling of classic example. point out Thank have to touched I efficient are a most services a for we buying way bit are that or is record since and

Leigh Fox

Yes, I it's misunderstood. think

guilty I've sort dealing market unfortunate everything. innocent proven part the on in the think the seen is I - you're fortunate, what public of is until almost of

down right a it now. it. we has of seeing lot record, And And the that got is your asset is time it value I that think to lot behind think - comes so from the That a for of proving think We're asset standpoint. it we're absolutely track to to proving have success. maximize timing, me on everything we're I one point I and do tailwind on Management a what

wouldn't on mean, say standpoint. I what mean I obvious split we're thinking. So organizational we've early it with reporting financial that asset. in quite a from our we're thinking standpoint I it's and

our know heads same look obvious next to the mix better you sure pieces we're trying to yes services. right. is that. I everyone is pretty And and your sees like we it calls, the basically together It I I then feel And period it the when that company are but all at a a the of we it's on inbound really look that when we the make market, mix maybe in of where you everyone impressive get ilk mean comparatively that like question are sees have I the that, So to very don't calls that when out the feel - XX put to public do what But business, think is time. month time. answer companies different of at. at month or comes within it'd happen a down

interest So mean no the time. get the different assets Board across so. are all I there's our and We it's there calls, get calls. calls we yes on

I obvious that we're would pretty shareholders. the but asset what and we say early yes, on to So want of it's thing for doing do right the just we're and

Jennifer Fritzsche

capital? potential first And build say if maybe centric? prioritize get Andy. I this de-lever or I you find if Leigh may with how and fiber for out would You'll just it's your is that But and or if did more wish-list - one accomplished assets, more guess

Andy Kaiser

right. centric think I in it's fiber debt,

that to too I down room you've time proceeds you of be I And it Not over you more builds. build. your use that, kind and a with little pure the fast to think down your then inefficient debt sheet to of it's your you accelerate with the a I gives fiber think centric builds. maybe fiber continue if little But you fiber debt think go speed it allows fiber a fiber I then I because and pay company healthier idea. that mean with out operationally closer to and control balance of with maybe to pay centric think bit. increase some and building would you of got a get being you closer

Operator

additional I'd back like further with remarks. And to any Leigh turn Fox, no for the over or closing questions, to call

Leigh Fox

track you executing in I'm strategy our the team continue for In Bell participating capitalize to and day. Bell successfully opportunities on today proven two will in its closing, each great Cincinnati the businesses. a and record future significant Cincinnati the the confident for has and of continued Thank a interest for have

Operator

concludes for today's your this Thank you And participation. call.

disconnect. You now may

Cincinnati Bell (BDWGP) 8 Nov 182018 Q3 Earnings call transcript