If You Invested in Cibl Inc (CIBY)

CIBL, Inc. (CIBY) is a holding company with interests in broadband operations. According to its public disclosures, CIBL’s operating businesses consist of Bretton Woods Telephone Company and World Surfer, Inc., which are described as providers of broadband and communication services in Northern New Hampshire. The company’s shares trade on the OTC Pink market under the symbol CIBY.

CIBL characterizes itself as a holding company rather than an operating telecom carrier at the parent level. Its New Hampshire operations generate revenues from broadband and communication services, and the company reports measures such as EBITDA from operations for these activities in its periodic financial updates. CIBL also reports that it has an investment in Brick Skirt Holdings, Inc., which, through subsidiaries, provides broadband and communication services to sections of western New York state.

Business structure and operations

The company’s described operations are focused on its New Hampshire businesses, Bretton Woods Telephone Company and World Surfer, Inc. In its releases, CIBL refers to these as its “New Hampshire Operations” and notes that they provide broadband and communication services in Northern New Hampshire. CIBL reports revenue, operating costs, corporate office expenses, depreciation and amortization, and EBITDA from operations for these activities.

In addition to its operating subsidiaries, CIBL holds financial assets, including investments in United States Treasury Bills, available-for-sale equity securities, and an equity method limited partnership. It also reports “other investments,” which include its interest in Brick Skirt Holdings, Inc. The company discloses cash and cash equivalents, investments, telecommunications property, plant and equipment, goodwill, and other intangibles on its consolidated balance sheets.

Geographic focus and affiliated investment

CIBL’s operating footprint, as described in its announcements, centers on Northern New Hampshire, where Bretton Woods Telephone Company and World Surfer, Inc. provide broadband and communication services. Separately, CIBL has acquired a 20% interest in Brick Skirt Holdings, Inc. from LICT Corporation. Brick Skirt, through subsidiaries, provides broadband and communication services to sections in western New York state. CIBL indicates that this interest was acquired through the issuance of its common shares.

Capital allocation and share repurchases

CIBL’s public releases emphasize its capital allocation activities. Since its spin-off from LICT Corporation in 2007, the company reports that it has repurchased a significant number of its own shares for an aggregate dollar amount disclosed in its announcements, and it periodically updates the number of shares outstanding and the average price paid for repurchases. The company also discloses that it holds cash, cash equivalents, and liquid investments, and it sometimes presents a “liquid value per share” measure based on these holdings, excluding the assets of its New Hampshire operations.

The company’s Board of Directors is described as continuing to evaluate a broad range of strategic alternatives for the company in order to create shareholder value. CIBL has also announced the addition of board members and advisors with experience in telecommunications, broadband operations, and finance, and has highlighted their backgrounds in related telecom and infrastructure businesses.

Financial reporting and metrics

CIBL periodically publishes unaudited consolidated statements of operations and balance sheets. These disclosures show revenue from its New Hampshire operations, operating costs (including costs of revenue, general and administrative costs of operations, and corporate office expenses), depreciation and amortization, and operating loss. They also present other income items such as interest income, equity in earnings or losses of affiliated companies, and unrealized and realized gains or losses on available-for-sale securities.

The company provides reconciliations of EBITDA and EBITDA from operations to net income. These reconciliations adjust for interest income, income tax expense or benefit, depreciation and amortization, corporate office expenses, equity in earnings or losses of affiliated companies, and unrealized and realized gains or losses on available-for-sale securities. CIBL also discloses capital expenditures for its telecommunications property, plant and equipment, and reports goodwill and other intangibles related to its operations.

Ownership structure and equity

CIBL’s consolidated balance sheets describe its equity structure, including common stock, contributed capital, retained earnings, and treasury stock. The company reports the number of shares authorized, issued, and outstanding, and the number of treasury shares held at cost. Over time, CIBL has reduced its outstanding share count through repurchases, while also issuing shares in connection with its acquisition of the Brick Skirt interest from LICT Corporation.

The company’s disclosures show that it has maintained relatively low levels of reported liabilities compared to its total assets, with current liabilities consisting primarily of trade accounts payable, accrued expenses, accrued liabilities, and income taxes payable. It also reports other liabilities and, in some periods, deferred income taxes.

Stock market listing and industry classification

CIBL states that it is listed on OTC Pink under the symbol CIBY. The company is associated with the wired telecommunications carriers industry within the broader information sector, reflecting its focus on broadband and communication services through its operating subsidiaries and affiliated investments.

Risk disclosures and forward-looking statements

In its news releases, CIBL includes cautionary notes concerning forward-looking information. The company explains that such information is based on assumptions, projections, and forecasts, and refers readers to cautionary statements set forth in documents filed on its website. It notes that forward-looking information is subject to uncertainties, risks, and inaccuracies, and that there can be no assurance that such information will prove to be accurate.

Summary

Overall, CIBL, Inc. presents itself as a holding company with operating broadband and communication service businesses in Northern New Hampshire and an equity interest in a broadband provider in western New York state. It emphasizes its cash and liquid investments, its history of share repurchases since its spin-off from LICT Corporation, and its ongoing evaluation of strategic alternatives by its Board of Directors. Investors and researchers looking at CIBY stock can review the company’s periodic financial updates to understand the performance of its New Hampshire operations, its investment holdings, and its capital allocation decisions.