Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable One”)
today reported financial and operating results for the quarter
ended September 30, 2024.
Three Months Ended September
30,
2024
2023
$ Change
% Change
(dollars in
thousands)
(As Restated)
(As Restated)
(As Restated)
Revenues
$
393,555
$
420,348
$
(26,793
)
(6.4
)%
Net income
$
44,215
$
30,297
$
13,918
45.9
%
Net profit margin
11.2
%
7.2
%
Cash flows from operating activities
$
176,209
$
180,152
$
(3,943
)
(2.2
)%
Adjusted EBITDA(1)
$
213,591
$
230,000
$
(16,409
)
(7.1
)%
Adjusted EBITDA margin(1)
54.3
%
54.7
%
Capital expenditures
$
76,970
$
77,815
$
(845
)
(1.1
)%
Adjusted EBITDA less capital
expenditures(1)
$
136,621
$
152,185
$
(15,564
)
(10.2
)%
“As anticipated, the average revenue per unit (“ARPU”) for our
residential data services stabilized during the third quarter of
2024,” said Julie Laulis, Cable One President and CEO. “At the same
time our customer base remained essentially unchanged, after
excluding the impact of customer losses from the expiration of the
Affordable Connectivity Program ("ACP") and customer gains from a
small acquisition. While we are still in the early stages of our
phased plan for sustained broadband growth, these are encouraging
indicators that we are well positioned to navigate the evolving
competitive landscape and deliver long-term value to our
shareholders.”
Third Quarter 2024 Summary:
- Residential data primary service units ("PSUs") decreased by
approximately 3,400 sequentially. During the third quarter, the
Company lost approximately 5,300 residential data PSUs as a result
of the expiration of the ACP and gained approximately 2,100
residential data PSUs from a small acquisition in July 2024.
- Net income was $44.2 million in the third quarter of 2024
compared to $30.3 million in the third quarter of 2023. Adjusted
EBITDA was $213.6 million in the third quarter of 2024 compared to
$230.0 million in the third quarter of 2023. Net profit margin was
11.2% and Adjusted EBITDA margin was 54.3%.
- Net cash provided by operating activities was $176.2 million in
the third quarter of 2024 compared to $180.2 million in the third
quarter of 2023. Adjusted EBITDA less capital expenditures was
$136.6 million in the third quarter of 2024 compared to $152.2
million in the third quarter of 2023.
- Total revenues were $393.6 million in the third quarter of 2024
compared to $420.3 million in the third quarter of 2023.
- The Company paid $17.0 million in dividends during the third
quarter of 2024.
- The Company repaid $50.0 million under its revolving credit
facility (the "Revolver") during the third quarter of 2024.
____________________
(1)
Adjusted EBITDA, Adjusted EBITDA margin
and Adjusted EBITDA less capital expenditures are defined in the
section of this press release entitled “Use of Non-GAAP Financial
Measures.” Adjusted EBITDA and Adjusted EBITDA less capital
expenditures are reconciled to net income, Adjusted EBITDA margin
is reconciled to net profit margin and Adjusted EBITDA less capital
expenditures is also reconciled to net cash provided by operating
activities. Refer to the “Reconciliations of Non-GAAP Measures”
tables within this press release.
Third Quarter 2024 Financial Results Compared to Third
Quarter 2023
Revenues were $393.6 million in the third quarter of 2024
compared to $420.3 million in the third quarter of 2023.
Residential data revenues decreased $17.1 million, or 6.9%,
year-over-year due primarily to a 7.1% decrease in average revenue
per unit. Residential video revenues decreased $8.6 million, or
13.9%, year-over-year due primarily to a decrease in residential
video subscribers, partially offset by a rate adjustment enacted
earlier in 2024. Business data revenues increased $1.6 million, or
2.9%, year-over-year due primarily to an increase in business data
subscribers.
Net income was $44.2 million in the third quarter of 2024
compared to $30.3 million in the prior year quarter. The
year-over-year increase was due primarily to a $22.4 million
reduction in the non-cash loss on fair value adjustment associated
with the call and put options to acquire the remaining equity
interests in Mega Broadband Investments Holdings LLC ("MBI"), a
$7.6 million reduction in programming and franchise costs resulting
from video customer losses and a $6.9 million non-cash gain on fair
value adjustment associated with an equity investment, partially
offset by lower revenues. Net profit margin was 11.2% in the third
quarter of 2024 compared to 7.2% in the prior year quarter.
Adjusted EBITDA was $213.6 million and $230.0 million for the
third quarter of 2024 and 2023, respectively. Adjusted EBITDA
margin was 54.3% in the third quarter of 2024 compared to 54.7% in
the prior year quarter.
Net cash provided by operating activities was $176.2 million in
the third quarter of 2024 compared to $180.2 million in the third
quarter of 2023. Capital expenditures for the third quarter of 2024
totaled $77.0 million compared to $77.8 million for the third
quarter of 2023. Adjusted EBITDA less capital expenditures for the
third quarter of 2024 was $136.6 million compared to $152.2 million
in the prior year quarter.
Liquidity and Capital Resources
At September 30, 2024, the Company had $226.6 million of cash
and cash equivalents on hand compared to $190.3 million at December
31, 2023. The Company’s debt balance was $3.52 billion and $3.68
billion at September 30, 2024 and December 31, 2023, respectively.
The Company had $188.0 million of borrowings and $812.0 million
available for borrowing under the Revolver as of September 30,
2024.
The Company paid $17.0 million in dividends to stockholders
during the third quarter of 2024.
The Company repaid $50.0 million under the Revolver during the
third quarter of 2024. In October 2024, the Company repaid an
additional $50.0 million under the Revolver.
In October 2024, the Company entered into an amendment to its
existing credit agreement to, among other things, increase the
borrowing capacity of the Revolver by $250.0 million to $1.25
billion.
The Company's capital expenditures by category for the three
months ended September 30, 2024 and 2023 were as follows (in
thousands):
Three Months Ended September
30,
2024
2023
Customer premise equipment(1)
$
18,390
$
10,635
Commercial(2)
3,883
8,760
Scalable infrastructure(3)
8,053
4,711
Line extensions(4)
14,625
13,058
Upgrade/rebuild(5)
11,026
11,744
Support capital(6)
20,993
28,907
Total
$
76,970
$
77,815
____________________
(1)
Customer premise equipment includes costs
incurred at customer locations, including installation costs and
customer premise equipment (e.g., modems and set-top boxes).
(2)
Commercial includes costs related to
securing business services customers and PSUs, including small and
medium-sized businesses and enterprise customers.
(3)
Scalable infrastructure includes costs not
related to customer premise equipment to secure growth of new
customers and PSUs or provide service enhancements (e.g., headend
equipment).
(4)
Line extensions include network costs
associated with entering new service areas (e.g., fiber/coaxial
cable, amplifiers, electronic equipment, make-ready and design
engineering).
(5)
Upgrade/rebuild includes costs to modify
or replace existing fiber/coaxial cable networks, including
betterments.
(6)
Support capital includes costs associated
with the replacement or enhancement of non-network assets due to
technological and physical obsolescence (e.g., non-network
equipment, land, buildings and vehicles) and capitalized internal
labor costs not associated with customer installation
activities.
Conference Call
Cable One will host a conference call with the financial
community to discuss results for the third quarter of 2024 on
Thursday, November 7, 2024, at 5 p.m. Eastern Time (ET).
The conference call will be available via an audio webcast on
the Cable One Investor Relations website at ir.cableone.net or by
dialing 1-888-800-3155 (International: 1-646-307-1696) and using
the access code 1202376. Participants should register for the
webcast or dial in for the conference call shortly before 5 p.m.
ET.
A replay of the call will be available from November 7, 2024
until November 21, 2024 at ir.cableone.net.
Additional Information Available on Website
The information in this press release should be read in
conjunction with the condensed consolidated financial statements
and notes thereto contained in the Company’s Quarterly Report on
Form 10-Q for the period ended September 30, 2024, which will be
posted on the “SEC Filings” section of the Cable One Investor
Relations website at ir.cableone.net when it is filed with the
Securities and Exchange Commission (the “SEC”). Investors and
others interested in more information about Cable One should
consult the Company’s website, which is regularly updated with
financial and other important information about the Company.
Use of Non-GAAP Financial Measures
The Company uses certain measures that are not defined by
generally accepted accounting principles in the United States
(“GAAP”) to evaluate various aspects of its business. Adjusted
EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital
expenditures and capital expenditures as a percentage of Adjusted
EBITDA are non-GAAP financial measures and should be considered in
addition to, not as superior to, or as a substitute for, net
income, net profit margin, net cash provided by operating
activities or capital expenditures as a percentage of net income
reported in accordance with GAAP. Adjusted EBITDA and Adjusted
EBITDA less capital expenditures are reconciled to net income,
Adjusted EBITDA margin is reconciled to net profit margin and
capital expenditures as a percentage of Adjusted EBITDA is
reconciled to capital expenditures as a percentage of net income.
Adjusted EBITDA less capital expenditures is also reconciled to net
cash provided by operating activities. These reconciliations are
included in the “Reconciliations of Non-GAAP Measures” tables
within this press release.
“Adjusted EBITDA” is defined as net income plus net interest
expense, income tax provision, depreciation and amortization,
equity-based compensation, severance and contract termination
costs, acquisition-related costs, net (gain) loss on asset sales
and disposals, system conversion costs, rebranding costs,
government program exit costs, net equity method investment
(income) loss, net other (income) expense and any special items, as
provided in the “Reconciliations of Non-GAAP Measures” tables
within this press release. As such, it eliminates the significant
non-cash depreciation and amortization expense that results from
the capital-intensive nature of the Company’s business as well as
other non-cash or special items and is unaffected by the Company’s
capital structure or investment activities. This measure is limited
in that it does not reflect the periodic costs of certain
capitalized tangible and intangible assets used in generating
revenues and the Company’s cash cost of debt financing. These costs
are evaluated through other financial measures.
“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided
by total revenues.
“Adjusted EBITDA less capital expenditures,” when used as a
liquidity measure, is calculated as net cash provided by operating
activities excluding the impact of capital expenditures, net
interest expense, amortization of debt discount and issuance costs,
income tax provision, changes in operating assets and liabilities,
change in deferred income taxes and certain other items, as
provided in the “Reconciliations of Non-GAAP Measures” tables
within this press release.
“Capital expenditures as a percentage of Adjusted EBITDA” is
defined as capital expenditures divided by Adjusted EBITDA.
The Company uses Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted EBITDA less capital expenditures and capital expenditures
as a percentage of Adjusted EBITDA to assess its performance, and
it also uses Adjusted EBITDA less capital expenditures as an
indicator of its ability to fund operations and make additional
investments with internally generated funds. In addition, Adjusted
EBITDA generally correlates to the measure used in the leverage
ratio calculations under the Company’s credit agreement and the
indenture governing the Company’s non-convertible senior unsecured
notes to determine compliance with the covenants contained in the
credit agreement and the ability to take certain actions under the
indenture governing the non-convertible senior unsecured notes.
Adjusted EBITDA less capital expenditures is also a significant
performance measure that has been used by the Company in its
incentive compensation programs. Adjusted EBITDA does not take into
account cash used for mandatory debt service requirements or other
non-discretionary expenditures, and thus does not represent
residual funds available for discretionary uses.
The Company believes that Adjusted EBITDA, Adjusted EBITDA
margin and capital expenditures as a percentage of Adjusted EBITDA
are useful to investors in evaluating the operating performance of
the Company. The Company believes that Adjusted EBITDA less capital
expenditures is useful to investors as it shows the Company’s
performance while taking into account cash outflows for capital
expenditures and is one of several indicators of the Company’s
ability to service debt, make investments and/or return capital to
its stockholders.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less
capital expenditures, capital expenditures as a percentage of
Adjusted EBITDA and similar measures with similar titles are common
measures used by investors, analysts and peers to compare
performance in the Company’s industry, although the Company’s
measures of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
EBITDA less capital expenditures and capital expenditures as a
percentage of Adjusted EBITDA may not be directly comparable to
similarly titled measures reported by other companies.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband
communications provider delivering exceptional service and enabling
more than 1 million residential and business customers across 24
states to thrive and stay connected to what matters most. Through
Sparklight® and the associated Cable One family of brands, we're
not just shaping the future of connectivity–we're transforming it
with a commitment to innovation, reliability and customer
experience at our core.
Our robust infrastructure and cutting-edge technology don’t just
keep our customers connected; they help drive progress in
education, business and everyday life. We’re dedicated to bridging
the digital divide, empowering our communities and fostering a more
connected world. When our customers choose Cable One, they are
choosing a team that is always working for them–one that believes
in the relentless pursuit of reliability, because being a trusted
neighbor isn’t just what we do–it’s who we are.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS
This communication and the related conference call may contain
“forward-looking statements” that involve risks and uncertainties.
These statements can be identified by the fact that they do not
relate strictly to historical or current facts, but rather are
based on current expectations, estimates, assumptions and
projections about the Company’s industry, business, strategy,
acquisitions and strategic investments, market expansion plans,
announced organizational changes, dividend policy, capital
allocation, financing strategy, the purchase price payable if the
put option associated with the remaining equity interests in Mega
Broadband Investments Holdings LLC ("MBI") is exercised (the “Put
Price”) and the anticipated timeline to consummate such
transaction, our ability and sources of capital to fund the Put
Price, MBI’s future indebtedness, our plans and intentions with
respect to our remediation efforts to address the material weakness
in our internal control over financial reporting, and our financial
results and financial condition. Forward-looking statements often
include words such as “will,” “should,” “anticipates,” “estimates,”
“expects,” “projects,” “intends,” “plans,” “believes” and words and
terms of similar substance in connection with discussions of future
operating or financial performance. As with any projection or
forecast, forward-looking statements are inherently susceptible to
uncertainty and changes in circumstances. The Company’s actual
results may vary materially from those expressed or implied in its
forward-looking statements. Accordingly, undue reliance should not
be placed on any forward-looking statement made by the Company or
on its behalf. Important factors that could cause the Company’s
actual results to differ materially from those in its
forward-looking statements include government regulation, economic,
strategic, political and social conditions and the following
factors, which are discussed in the Company’s amended Annual Report
on Form 10-K/A for the year ended December 31, 2023 filed with the
SEC on October 2, 2024 (the "2023 Form 10-K/A"):
- rising levels of competition from historical and new entrants
in the Company’s markets;
- recent and future changes in technology, and the Company's
ability to develop, deploy and operate new technologies, service
offerings and customer service platforms;
- the Company’s ability to continue to grow its residential data
and business data revenues and customer base;
- increases in programming costs and retransmission fees;
- the Company’s ability to obtain hardware, software and
operational support from vendors;
- risks that the Company may fail to realize the benefits
anticipated as a result of the Company's purchase of the remaining
interests in Hargray Acquisition Holdings, LLC that the Company did
not already own;
- risks relating to existing or future acquisitions and strategic
investments by the Company, including risks associated with the
potential exercise of the put option associated with the remaining
equity interests in MBI;
- risks that the implementation of the Company’s new enterprise
resource planning and billing systems disrupt business
operations;
- the integrity and security of the Company’s network and
information systems;
- the impact of possible security breaches and other disruptions,
including cyber-attacks;
- the Company’s failure to obtain necessary intellectual and
proprietary rights to operate its business and the risk of
intellectual property claims and litigation against the
Company;
- risks related to the restatement of the Company's consolidated
financial statements included in the 2023 Form 10-K/A and for other
periods impacted by the restatement identified in the Current
Report on Form 8-K filed with the SEC on September 24, 2024;
- the Company's ability to maintain effective internal control
over financial reporting and disclosure controls and procedures,
including the ability to remediate any existing material weakness
in internal control over financial reporting and the timing of any
such remediation, as well as the ability to reestablish effective
disclosure controls and procedures;
- legislative or regulatory efforts to impose network neutrality
and other new requirements on the Company’s data services;
- additional regulation of the Company’s video and voice
services;
- the Company’s ability to renew cable system franchises;
- increases in pole attachment costs;
- changes in local governmental franchising authority and
broadcast carriage regulations;
- changes in government subsidy programs;
- the potential adverse effect of the Company’s level of
indebtedness on its business, financial condition or results of
operations and cash flows;
- the restrictions the terms of the Company’s indebtedness place
on its business and corporate actions;
- the possibility that interest rates will continue to rise,
causing the Company’s obligations to service its variable rate
indebtedness to increase significantly;
- risks associated with the Company’s convertible
indebtedness;
- the Company’s ability to continue to pay dividends;
- provisions in the Company’s charter, by-laws and Delaware law
that could discourage takeovers and limit the judicial forum for
certain disputes;
- adverse economic conditions, labor shortages, supply chain
disruptions, changes in rates of inflation and the level of move
activity in the housing sector;
- pandemics, epidemics or disease outbreaks, such as the COVID-19
pandemic, have, and may in the future, disrupt the Company's
business and operations, which could materially affect the
Company's business, financial condition, results of operations and
cash flows;
- lower demand for the Company's residential data and business
data products;
- fluctuations in the Company’s stock price;
- dilution from equity awards, convertible indebtedness and
potential future convertible debt and stock issuances;
- damage to the Company’s reputation or brand image;
- the Company’s ability to retain key employees (whom the Company
refers to as associates);
- the Company’s ability to incur future indebtedness;
- provisions in the Company’s charter that could limit the
liabilities for directors; and
- the other risks and uncertainties detailed from time to time in
the Company’s filings with the SEC, including but not limited to
those described under "Risk Factors" in its 2023 Form 10-K/A and in
its subsequent filings with the SEC.
Any forward-looking statements made by the Company in this
communication speak only as of the date on which they are made. The
Company is under no obligation, and expressly disclaims any
obligation, except as required by law, to update or alter its
forward-looking statements, whether as a result of new information,
subsequent events or otherwise.
CABLE ONE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended September
30,
2024
2023(1)
Change
% Change
(dollars in
thousands, except per share data)
(As Restated)
(As Restated)
(As Restated)
Revenues:
Residential data
$
230,362
$
247,420
$
(17,058
)
(6.9
)%
Residential video
53,650
62,295
(8,645
)
(13.9
)%
Residential voice
7,765
9,080
(1,315
)
(14.5
)%
Business data
57,281
55,691
1,590
2.9
%
Business other
17,942
19,884
(1,942
)
(9.8
)%
Other
26,555
25,978
577
2.2
%
Total Revenues
393,555
420,348
(26,793
)
(6.4
)%
Costs and Expenses:
Operating (excluding depreciation and
amortization)
104,603
109,682
(5,079
)
(4.6
)%
Selling, general and administrative
88,443
92,726
(4,283
)
(4.6
)%
Depreciation and amortization
85,165
82,918
2,247
2.7
%
(Gain) loss on asset sales and disposals,
net
5,045
2,492
2,553
102.4
%
Total Costs and Expenses
283,256
287,818
(4,562
)
(1.6
)%
Income from operations
110,299
132,530
(22,231
)
(16.8
)%
Interest expense, net
(34,210
)
(38,548
)
4,338
(11.3
)%
Other income (expense), net
5,252
(25,372
)
30,624
(120.7
)%
Income before income taxes and equity
method investment income (loss), net
81,341
68,610
12,731
18.6
%
Income tax provision
15,870
17,258
(1,388
)
(8.0
)%
Income before equity method investment
income (loss), net
65,471
51,352
14,119
27.5
%
Equity method investment income (loss),
net
(21,256
)
(21,055
)
(201
)
1.0
%
Net income
$
44,215
$
30,297
$
13,918
45.9
%
Net Income per Common Share:
Basic
$
7.86
$
5.40
$
2.46
45.6
%
Diluted
$
7.58
$
5.29
$
2.29
43.3
%
Weighted Average Common Shares
Outstanding:
Basic
5,622,512
5,611,278
11,234
0.2
%
Diluted
6,037,624
6,026,285
11,339
0.2
%
Unrealized gain (loss) on cash flow hedges
and other, net of tax
$
(31,159
)
$
18,569
$
(49,728
)
NM
Comprehensive income
$
13,056
$
48,866
$
(35,810
)
(73.3
)%
____________________
NM = Not meaningful.
(1)
Interest and investment income for the
three months ended September 30, 2023 has been reclassified from
Other income (expense), net, to Interest expense, net, to conform
to the current year presentation.
CABLE ONE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(dollars in
thousands, except par values)
September 30, 2024
December 31, 2023
Assets
Current Assets:
Cash and cash equivalents
$
226,641
$
190,289
Accounts receivable, net
58,449
93,973
Prepaid and other current assets
49,980
58,116
Total Current Assets
335,070
342,378
Equity investments
1,000,011
1,038,024
Property, plant and equipment, net
1,790,759
1,791,120
Intangible assets, net
2,549,417
2,595,892
Goodwill
929,415
928,947
Other noncurrent assets
56,008
63,149
Total Assets
$
6,660,680
$
6,759,510
Liabilities and Stockholders'
Equity
Current Liabilities:
Accounts payable and accrued
liabilities
$
314,884
$
156,645
Deferred revenue
25,959
27,169
Current portion of long-term debt
18,943
19,023
Total Current Liabilities
359,786
202,837
Long-term debt
3,468,818
3,626,928
Deferred income taxes
916,545
950,919
Other noncurrent liabilities
30,927
169,556
Total Liabilities
4,776,076
4,950,240
Stockholders' Equity:
Preferred stock ($0.01 par value;
4,000,000 shares authorized; none issued or outstanding)
—
—
Common stock ($0.01 par value; 40,000,000
shares authorized; 6,175,399 shares issued; and 5,619,077 and
5,616,987 shares outstanding as of September 30, 2024 and December
31, 2023, respectively)
62
62
Additional paid-in capital
630,506
607,574
Retained earnings
1,830,417
1,761,667
Accumulated other comprehensive income
(loss)
23,167
36,745
Treasury stock, at cost (556,322 and
558,412 shares held as of September 30, 2024 and December 31, 2023,
respectively)
(599,548
)
(596,778
)
Total Stockholders' Equity
1,884,604
1,809,270
Total Liabilities and Stockholders'
Equity
$
6,660,680
$
6,759,510
CABLE ONE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended September
30,
2024
2023
(in
thousands)
(As Restated)
Cash flows from operating
activities:
Net income
$
44,215
$
30,297
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
85,165
82,918
Amortization of debt discount and issuance
costs
2,214
2,213
Equity-based compensation
8,356
10,235
Change in deferred income taxes
(15,006
)
(7,798
)
(Gain) loss on asset sales and disposals,
net
5,045
2,492
Equity method investment (income) loss,
net
21,256
21,055
Fair value adjustments
(5,347
)
25,421
Changes in operating assets and
liabilities:
Accounts receivable, net
7,802
(11,720
)
Prepaid and other current assets
7,897
12,096
Accounts payable and accrued
liabilities
17,333
16,864
Deferred revenue
(346
)
(953
)
Other
(2,375
)
(2,968
)
Net cash provided by operating
activities
176,209
180,152
Cash flows from investing
activities:
Purchase of business
(4,326
)
—
Cash paid for debt and equity
investments
—
(816
)
Capital expenditures
(76,970
)
(77,815
)
Change in accrued expenses related to
capital expenditures
1,854
8,609
Proceeds from sales of property, plant and
equipment
129
360
Proceeds from sales of equity
investments
—
56,730
Net cash used in investing activities
(79,313
)
(12,932
)
Cash flows from financing
activities:
Payments on long-term debt
(54,704
)
(55,039
)
Repurchases of common stock
—
(16,495
)
Payment of withholding tax for equity
awards
(38
)
(89
)
Dividends paid to stockholders
(17,031
)
(16,699
)
Net cash used in financing activities
(71,773
)
(88,322
)
Change in cash and cash equivalents
25,123
78,898
Cash and cash equivalents, beginning of
period
201,518
160,734
Cash and cash equivalents, end of
period
$
226,641
$
239,632
Supplemental cash flow
disclosures:
Cash paid for interest, net of capitalized
interest
$
32,726
$
35,000
Cash paid for income taxes, net of refunds
received
$
23,103
$
15,037
CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP
MEASURES
(Unaudited)
Three Months Ended September
30,
2024
2023
$ Change
% Change
(dollars in
thousands)
(As Restated)
(As Restated)
(As Restated)
Net income
$
44,215
$
30,297
$
13,918
45.9
%
Net profit margin
11.2
%
7.2
%
Plus: Interest expense, net
34,210
38,548
(4,338
)
(11.3
)%
Income tax provision
15,870
17,258
(1,388
)
(8.0
)%
Depreciation and amortization
85,165
82,918
2,247
2.7
%
Equity-based compensation
8,356
10,235
(1,879
)
(18.4
)%
Severance and contract termination
costs
845
1,217
(372
)
(30.6
)%
Acquisition-related costs
289
409
(120
)
(29.3
)%
(Gain) loss on asset sales and disposals,
net
5,045
2,492
2,553
102.4
%
System conversion costs
1,559
199
1,360
NM
Rebranding costs
1,127
—
1,127
NM
Government program exit costs
906
—
906
NM
Equity method investment (income) loss,
net
21,256
21,055
201
1.0
%
Other (income) expense, net
(5,252
)
25,372
(30,624
)
(120.7
)%
Adjusted EBITDA
$
213,591
$
230,000
$
(16,409
)
(7.1
)%
Adjusted EBITDA margin
54.3
%
54.7
%
Less: Capital expenditures
$
76,970
$
77,815
$
(845
)
(1.1
)%
Capital expenditures as a percentage of
net income
174.1
%
256.8
%
Capital expenditures as a percentage of
Adjusted EBITDA
36.0
%
33.8
%
Adjusted EBITDA less capital
expenditures
$
136,621
$
152,185
$
(15,564
)
(10.2
)%
____________________
NM = Not meaningful.
CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP
MEASURES (Continued)
(Unaudited)
Three Months Ended September
30,
2024
2023
$ Change
% Change
(dollars in
thousands)
(As Restated)
(As Restated)
(As Restated)
Net cash provided by operating
activities
$
176,209
$
180,152
$
(3,943
)
(2.2
)%
Capital expenditures
(76,970
)
(77,815
)
845
(1.1
)%
Interest expense, net
34,210
38,548
(4,338
)
(11.3
)%
Amortization of debt discount and issuance
costs
(2,214
)
(2,213
)
(1
)
—
%
Income tax provision
15,870
17,258
(1,388
)
(8.0
)%
Changes in operating assets and
liabilities
(30,311
)
(13,319
)
(16,992
)
127.6
%
Change in deferred income taxes
15,006
7,798
7,208
92.4
%
Acquisition-related costs
289
409
(120
)
(29.3
)%
Severance and contract termination
costs
845
1,217
(372
)
(30.6
)%
System conversion costs
1,559
199
1,360
NM
Rebranding costs
1,127
—
1,127
NM
Government program exit costs
906
—
906
NM
Fair value adjustments
5,347
(25,421
)
30,768
(121.0
)%
Other (income) expense, net
(5,252
)
25,372
(30,624
)
(120.7
)%
Adjusted EBITDA less capital
expenditures
$
136,621
$
152,185
$
(15,564
)
(10.2
)%
____________________
NM = Not meaningful.
CABLE ONE, INC.
OPERATING STATISTICS
(Unaudited)
As of September 30,
(in thousands,
except percentages and ARPU data)
2024
2023
Change
% Change
Homes Passed
2,828.5
2,754.4
74.2
2.7
%
Residential Customers
987.1
994.6
(7.5
)
(0.8
)%
Data PSUs(1)
959.8
958.8
0.9
0.1
%
Video PSUs
112.1
140.5
(28.4
)
(20.2
)%
Voice PSUs
70.0
81.7
(11.7
)
(14.3
)%
Total residential PSUs
1,141.8
1,181.0
(39.1
)
(3.3
)%
Business Customers
102.7
102.7
—
—
%
Data PSUs
99.7
98.6
1.1
1.1
%
Video PSUs
6.7
8.4
(1.8
)
(21.2
)%
Voice PSUs
38.6
40.0
(1.4
)
(3.4
)%
Total business services PSUs
144.9
147.0
(2.1
)
(1.4
)%
Total Customers
1,089.8
1,097.3
(7.5
)
(0.7
)%
Total non-video
967.0
946.1
20.9
2.2
%
Percent of total
88.7
%
86.2
%
2.5
%
Data PSUs
1,059.4
1,057.4
2.0
0.2
%
Video PSUs
118.7
148.9
(30.2
)
(20.3
)%
Voice PSUs
108.6
121.6
(13.1
)
(10.7
)%
Total PSUs
1,286.7
1,327.9
(41.2
)
(3.1
)%
Penetration
Data
37.5
%
38.4
%
(0.9
)%
Video
4.2
%
5.4
%
(1.2
)%
Voice
3.8
%
4.4
%
(0.6
)%
Share of Third Quarter Revenues
Residential data
58.5
%
58.9
%
(0.3
)%
Business services
19.1
%
18.0
%
1.1
%
Total
77.6
%
76.8
%
0.8
%
ARPU - Third Quarter
Residential data(2)
$
79.61
$
85.69
$
(6.08
)
(7.1
)%
Residential video(2)
$
154.62
$
143.27
$
11.35
7.9
%
Residential voice(2)
$
36.20
$
36.34
$
(0.14
)
(0.4
)%
Business services(3)
$
244.02
$
245.90
$
(1.88
)
(0.8
)%
____________________
Note: All totals, percentages and
year-over-year changes are calculated using exact numbers. Minor
differences may exist due to rounding.
(1)
Amount as of September 30, 2024 includes
2,100 residential data PSUs acquired in a small acquisition.
(2)
ARPU values represent the applicable
quarterly residential service revenues (excluding installation and
activation fees) divided by the corresponding average of the number
of PSUs at the beginning and end of each period, divided by three,
except that for any PSUs added or subtracted as a result of an
acquisition or divestiture occurring during the period, the
associated ARPU values represent the applicable residential service
revenues (excluding installation and activation fees) divided by
the pro-rated average number of PSUs during such period.
(3)
ARPU values represent quarterly business
services revenues divided by the average of the number of business
customer relationships at the beginning and end of each period,
divided by three, except that for any business customer
relationships added or subtracted as a result of an acquisition or
divestiture occurring during the period, the associated ARPU values
represent business services revenues divided by the pro-rated
average number of business customer relationships during such
period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107830519/en/
Trish Niemann Vice President, Communications Strategy
602-364-6372 patricia.niemann@cableone.biz
Todd Koetje Chief Financial Officer
investor_relations@cableone.biz
Cable One (NYSE:CABO)
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