Broadwing Reports Positive Cash Flow in Q4, Initiates Recapitalization

Broadwing reported Q4 revenue of $503 million, an 8 percent decline over the same period in 2001. While the company’s Cincinnati Bell businesses grew 4 percent, the revenue decline was due to weakness in its Broadwing Communications operations. In the quarter, the company announced an asset impairment charge due to the exit of its Broadwing Communications business. This non-cash charge produced an operating loss of $2.2 billion for the quarter. On a per share basis, the loss from continuing operations was $10.92, versus a loss of $0.95 per share for the same period last year. Additionally, the company produced $30 million of positive cash flow in the fourth quarter, its second consecutive quarter of positive cash flow. Broadwing also announced a recapitalization that includes the successful completion of an amendment to its bank credit facility for, among other things, extension of its scheduled maturities. The company said the recapitalization provides it with sufficient liquidity to meet its obligations until 2006.
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