After posting improved third quarter numbers, telecommunications provider Broadwing Inc. wants to streamline and explore strategic alternatives, including some asset sales. But one analyst said the company faces an uphill battle. CIBC World Markets analyst Cannon Carr said in an Oct. 29 research note that asset sales would be difficult without “undermining current cash resources.” The $455 million market cap company has $62 million in free cash flow. Carr added that Broadwing’s biggest challenge remains its balance sheet; its debt-to-EBITDA ratio stands at 3.2, and its broadband business has limited potential for organic growth. Carr could not be reached for additional comment.
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