Cable One Reports Fourth Quarter and Full Year 2024 Results
Cable One (NYSE: CABO) reported its Q4 and full-year 2024 financial results, showing mixed performance. The company experienced a net loss of $105.2 million in Q4 2024, compared to net income of $103.5 million in Q4 2023. Full-year revenues declined 5.9% to $1.58 billion, with residential data revenues decreasing 5.5%.
Key Q4 metrics include Adjusted EBITDA of $211.0 million (54.5% margin) and total revenues of $387.2 million. The company's residential data ARPU stabilized at $79.72, showing a slight sequential increase. Business data revenues grew 2.3% year-over-year.
Notable developments include a $250 million increase in revolving credit facility to $1.25 billion and amendments to the MBI agreement improving balance sheet flexibility. The company maintained its dividend payments, totaling $67.9 million in 2024, while managing debt levels at $3.62 billion by year-end.
Cable One (NYSE: CABO) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. L'azienda ha registrato una perdita netta di 105,2 milioni di dollari nel Q4 2024, rispetto a un utile netto di 103,5 milioni di dollari nel Q4 2023. I ricavi annuali sono diminuiti del 5,9%, raggiungendo 1,58 miliardi di dollari, con i ricavi dei dati residenziali in calo del 5,5%.
I principali indicatori del Q4 includono un EBITDA rettificato di 211,0 milioni di dollari (margine del 54,5%) e ricavi totali di 387,2 milioni di dollari. L'ARPU dei dati residenziali si è stabilizzato a 79,72 dollari, mostrando un leggero aumento sequenziale. I ricavi dei dati aziendali sono aumentati del 2,3% rispetto all'anno precedente.
Sviluppi notevoli includono un aumento di 250 milioni di dollari nella linea di credito revolving, portandola a 1,25 miliardi di dollari e modifiche all'accordo MBI che migliorano la flessibilità del bilancio. L'azienda ha mantenuto i pagamenti dei dividendi, per un totale di 67,9 milioni di dollari nel 2024, gestendo i livelli di debito a 3,62 miliardi di dollari entro la fine dell'anno.
Cable One (NYSE: CABO) reportó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un rendimiento mixto. La compañía experimentó una pérdida neta de 105,2 millones de dólares en el Q4 2024, en comparación con un ingreso neto de 103,5 millones de dólares en el Q4 2023. Los ingresos del año completo disminuyeron un 5,9% a 1,58 mil millones de dólares, con una caída del 5,5% en los ingresos de datos residenciales.
Los principales indicadores del Q4 incluyen un EBITDA ajustado de 211,0 millones de dólares (margen del 54,5%) y ingresos totales de 387,2 millones de dólares. El ARPU de datos residenciales se estabilizó en 79,72 dólares, mostrando un ligero aumento secuencial. Los ingresos de datos empresariales crecieron un 2,3% interanual.
Desarrollos notables incluyen un aumento de 250 millones de dólares en la línea de crédito revolving a 1,25 mil millones de dólares y enmiendas al acuerdo MBI que mejoran la flexibilidad del balance. La compañía mantuvo sus pagos de dividendos, totalizando 67,9 millones de dólares en 2024, mientras gestionaba los niveles de deuda en 3,62 mil millones de dólares al final del año.
Cable One (NYSE: CABO)는 2024년 4분기 및 연간 재무 결과를 발표하며 혼합된 성과를 보였습니다. 회사는 2024년 4분기에 1억 520만 달러의 순손실을 기록했으며, 이는 2023년 4분기 1억 3500만 달러의 순이익과 비교됩니다. 연간 수익은 5.9% 감소하여 15억 8000만 달러에 달했으며, 주거 데이터 수익은 5.5% 감소했습니다.
4분기 주요 지표로는 조정 EBITDA가 2억 1100만 달러(54.5% 마진)이고 총 수익이 3억 8720만 달러입니다. 회사의 주거 데이터 ARPU는 79.72달러로 안정세를 보이며, 약간의 증가세를 보였습니다. 기업 데이터 수익은 전년 대비 2.3% 증가했습니다.
주목할 만한 발전 사항으로는 2억 5000만 달러의 회전 신용 한도 증가가 있어 12억 5000만 달러에 도달했고, MBI 계약 수정으로 재무 유연성이 향상되었습니다. 회사는 2024년 총 6천790만 달러의 배당금을 유지하며, 연말까지 부채 수준을 36억 2000만 달러로 관리했습니다.
Cable One (NYSE: CABO) a publié ses résultats financiers du quatrième trimestre et de l'année complète 2024, montrant une performance mitigée. L'entreprise a enregistré une perte nette de 105,2 millions de dollars au Q4 2024, contre un bénéfice net de 103,5 millions de dollars au Q4 2023. Les revenus annuels ont diminué de 5,9% pour atteindre 1,58 milliard de dollars, avec une baisse de 5,5% des revenus des données résidentielles.
Les principaux indicateurs du Q4 incluent un EBITDA ajusté de 211,0 millions de dollars (marge de 54,5%) et des revenus totaux de 387,2 millions de dollars. L'ARPU des données résidentielles s'est stabilisé à 79,72 dollars, montrant une légère augmentation séquentielle. Les revenus des données commerciales ont augmenté de 2,3% par rapport à l'année précédente.
Les développements notables comprennent une augmentation de 250 millions de dollars de la ligne de crédit renouvelable, portant celle-ci à 1,25 milliard de dollars, ainsi que des amendements à l'accord MBI qui améliorent la flexibilité du bilan. L'entreprise a maintenu ses paiements de dividendes, totalisant 67,9 millions de dollars en 2024, tout en gérant les niveaux d'endettement à 3,62 milliards de dollars d'ici la fin de l'année.
Cable One (NYSE: CABO) hat seine Finanzergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Das Unternehmen verzeichnete einen Nettoverlust von 105,2 Millionen Dollar im Q4 2024, verglichen mit einem Nettogewinn von 103,5 Millionen Dollar im Q4 2023. Die Gesamteinnahmen für das Jahr sanken um 5,9% auf 1,58 Milliarden Dollar, wobei die Einnahmen aus Wohnungsdaten um 5,5% zurückgingen.
Wichtige Kennzahlen für das Q4 umfassen ein bereinigtes EBITDA von 211,0 Millionen Dollar (54,5% Marge) und Gesamteinnahmen von 387,2 Millionen Dollar. Der ARPU für Wohnungsdaten stabilisierte sich bei 79,72 Dollar und zeigte einen leichten sequenziellen Anstieg. Die Einnahmen aus Geschäftsdaten stiegen im Jahresvergleich um 2,3%.
Bemerkenswerte Entwicklungen umfassen eine Erhöhung der revolvierenden Kreditlinie um 250 Millionen Dollar auf 1,25 Milliarden Dollar und Änderungen am MBI-Vertrag, die die Flexibilität der Bilanz verbessern. Das Unternehmen hielt seine Dividendenzahlungen aufrecht, die 2024 insgesamt 67,9 Millionen Dollar betrugen, während es die Schulden auf 3,62 Milliarden Dollar zum Jahresende verwaltete.
- Business data revenues grew 2.6% year-over-year
- Increased revolving credit facility by $250M to $1.25B
- Residential data ARPU stabilized with sequential increase
- Adjusted EBITDA less capital expenditures improved to $567.6M from $545.9M
- Net loss of $105.2M in Q4 2024 vs $103.5M profit in Q4 2023
- Total revenues declined 5.9% to $1.58B in 2024
- Residential data revenues decreased 5.5% year-over-year
- Video revenues dropped 13.9% year-over-year
Insights
Cable One's Q4 and full-year 2024 results present a mixed financial picture with significant challenges in its core residential business offset by strategic balance sheet management and operational efficiency.
The company reported a Q4 net loss of
Revenue pressures remain significant with Q4 revenue down
Despite revenue challenges, Cable One maintained an impressive Adjusted EBITDA margin of
The strategic amendment to the MBI agreement provides Cable One with improved balance sheet flexibility and future leverage management. Additionally, the company increased its revolving credit facility capacity by
Cable One's stabilizing ARPU in the second half of 2024 (with a sequential increase of
|
|
Three Months Ended
|
|
|
|
|
|||||||||
(dollars in thousands) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Revenues |
|
$ |
387,213 |
|
|
$ |
411,815 |
|
|
$ |
(24,602 |
) |
|
(6.0 |
)% |
Net income (loss) |
|
$ |
(105,238 |
) |
|
$ |
103,496 |
|
|
$ |
(208,734 |
) |
|
(201.7 |
)% |
Net profit margin |
|
|
(27.2 |
)% |
|
|
25.1 |
% |
|
|
|
|
|||
Cash flows from operating activities |
|
$ |
167,621 |
|
|
$ |
151,669 |
|
|
$ |
15,952 |
|
|
10.5 |
% |
Adjusted EBITDA(1) |
|
$ |
210,971 |
|
|
$ |
226,877 |
|
|
$ |
(15,906 |
) |
|
(7.0 |
)% |
Adjusted EBITDA margin(1) |
|
|
54.5 |
% |
|
|
55.1 |
% |
|
|
|
|
|||
Capital expenditures |
|
$ |
71,905 |
|
|
$ |
115,600 |
|
|
$ |
(43,695 |
) |
|
(37.8 |
)% |
Adjusted EBITDA less capital expenditures(1) |
|
$ |
139,066 |
|
|
$ |
111,277 |
|
|
$ |
27,789 |
|
|
25.0 |
% |
|
|
Year Ended
|
|
|
|
|
|||||||||
(dollars in thousands) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Revenues |
|
$ |
1,579,542 |
|
|
$ |
1,678,081 |
|
|
$ |
(98,539 |
) |
|
(5.9 |
)% |
Net income |
|
$ |
14,480 |
|
|
$ |
224,622 |
|
|
$ |
(210,142 |
) |
|
(93.6 |
)% |
Net profit margin |
|
|
0.9 |
% |
|
|
13.4 |
% |
|
|
|
|
|||
Cash flows from operating activities |
|
$ |
664,128 |
|
|
$ |
663,170 |
|
|
$ |
958 |
|
|
0.1 |
% |
Adjusted EBITDA(1) |
|
$ |
853,986 |
|
|
$ |
916,944 |
|
|
$ |
(62,958 |
) |
|
(6.9 |
)% |
Adjusted EBITDA margin(1) |
|
|
54.1 |
% |
|
|
54.6 |
% |
|
|
|
|
|||
Capital expenditures |
|
$ |
286,354 |
|
|
$ |
371,028 |
|
|
$ |
(84,674 |
) |
|
(22.8 |
)% |
Adjusted EBITDA less capital expenditures(1) |
|
$ |
567,632 |
|
|
$ |
545,916 |
|
|
$ |
21,716 |
|
|
4.0 |
% |
“As anticipated, the average revenue per unit ('ARPU') for our residential data services stabilized during the second half of 2024,” said Julie Laulis, Cable One President and CEO. “For the year, after excluding the impact of customer losses from the expiration of the Affordable Connectivity Program (the 'ACP') and customer gains from a small acquisition, our residential data customer base increased by approximately 2,200 subscribers. We believe the steps taken in 2024 continue to fortify the foundation for our phased plan of long-term, sustainable growth."
Fourth Quarter 2024 Highlights:
-
Net loss was
$105.2 million $103.5 million $211.0 million $226.9 million 27.2% and Adjusted EBITDA margin was54.5% .
-
Net cash provided by operating activities was
$167.6 million $151.7 million $139.1 million $111.3 million
-
Total revenues were
$387.2 million $411.8 million 5.4% and business data revenues increased2.3% .
-
Residential data ARPU was
$79.72 $0.11
-
The Company paid
$16.9 million
-
In October 2024, the Company amended its existing credit agreement to, among other things, increase the borrowing capacity of the Company's revolving credit facility (the "Revolver") by
$250.0 million $1.25 billion
- In December 2024, the Company amended its agreement with Mega Broadband Investments Holdings LLC, a data, video and voice services provider ("MBI"), to provide for a new call option and the deferral of any exercise and closing of the put option held by other investors in MBI for the remaining equity interests in MBI that the Company does not already own (the "MBI Amendment"), enabling the Company to improve its balance sheet flexibility and future anticipated leverage levels.
Full Year 2024 Highlights:
-
Net income was
$14.5 million $224.6 million $854.0 million $916.9 million 0.9% and Adjusted EBITDA margin was54.1% .
-
Net cash provided by operating activities was
$664.1 million $663.2 million $567.6 million $545.9 million
-
Total revenues were
$1.58 billion $1.68 billion 5.5% and business data revenues increased2.6% .
-
The Company paid
$67.9 million
-
The Company repaid
$200.0 million $175.0 million
| ____________________ | ||
(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 (loss), 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. |
|
Fourth Quarter 2024 Financial Results Compared to Fourth Quarter 2023
Revenues decreased
Net loss was
Adjusted EBITDA was
Net cash provided by operating activities was
Full Year 2024 Financial Results Compared to Full Year 2023
Revenues decreased
Net income was
Adjusted EBITDA was
Net cash provided by operating activities was
Liquidity and Capital Resources
At December 31, 2024, the Company had
In October 2024, the Company amended its existing credit agreement to, among other things, increase the borrowing capacity of the Revolver by
The Company paid
The Company repaid
The Company's capital expenditures by category were as follows for the periods presented (in thousands):
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Customer premise equipment(1) |
|
$ |
22,446 |
|
|
$ |
17,045 |
|
|
$ |
59,876 |
|
|
$ |
62,066 |
|
Commercial(2) |
|
|
5,923 |
|
|
|
11,181 |
|
|
|
20,996 |
|
|
|
38,893 |
|
Scalable infrastructure(3) |
|
|
5,275 |
|
|
|
26,441 |
|
|
|
31,334 |
|
|
|
54,097 |
|
Line extensions(4) |
|
|
13,067 |
|
|
|
17,943 |
|
|
|
61,326 |
|
|
|
51,466 |
|
Upgrade/rebuild(5) |
|
|
3,941 |
|
|
|
13,521 |
|
|
|
30,486 |
|
|
|
60,898 |
|
Support capital(6) |
|
|
21,253 |
|
|
|
29,469 |
|
|
|
82,336 |
|
|
|
103,608 |
|
Total |
|
$ |
71,905 |
|
|
$ |
115,600 |
|
|
$ |
286,354 |
|
|
$ |
371,028 |
|
| ____________________ | ||
(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 primary service units ("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 fourth quarter and full year 2024 on Thursday, February 27, 2025, 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 February 27, 2025 until March 13, 2025 at ir.cableone.net.
Additional Information Available on Website
The information in this press release should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the period ended December 31, 2024 (the "2024 Form 10-K"), 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
“Adjusted EBITDA” is defined as net income (loss) plus net interest expense, income tax provision (benefit), 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 other special items, as applicable, 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, income tax provision (benefit), changes in operating assets and liabilities, change in deferred income taxes and other special items, as applicable, 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, capital expenditures as a percentage of Adjusted EBITDA, and Adjusted EBITDA less capital expenditures are also significant performance measures that have 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 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, technologies, acquisitions and strategic investments, market expansion plans, dividend policy, capital allocation, financing strategy, the purchase price payable if the call option or put option associated with the remaining equity interests in MBI is exercised (such purchase price, the "Call Price" or "Put Price", as applicable) and the anticipated timeline to consummate such transaction, the Company's ability and sources of capital to fund the Call Price or Put Price, MBI's future indebtedness and the Company's 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 2024 Form 10-K to be filed with the SEC:
- 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;
- risks associated with the Company's use of artificial intelligence;
- 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 call option or put option associated with the remaining equity interests in MBI;
- risks that the implementation of the Company’s unified billing system disrupts 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;
- the Company's ability to maintain effective internal control over financial reporting and 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 or changes to government subsidy programs;
- the Company’s ability to renew cable system franchises;
- increases in pole attachment costs;
- changes in local governmental franchising authority and broadcast carriage regulations;
- 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 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 latest Annual Report on Form 10-K 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
|
|
|
|
|
|||||||||
(dollars in thousands, except per share data) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Revenues: |
|
|
|
|
|
|
|
|
|||||||
Residential data |
|
$ |
229,269 |
|
|
$ |
242,340 |
|
|
$ |
(13,071 |
) |
|
(5.4 |
)% |
Residential video |
|
|
50,850 |
|
|
|
59,247 |
|
|
|
(8,397 |
) |
|
(14.2 |
)% |
Residential voice |
|
|
7,430 |
|
|
|
8,755 |
|
|
|
(1,325 |
) |
|
(15.1 |
)% |
Business data |
|
|
57,589 |
|
|
|
56,318 |
|
|
|
1,271 |
|
|
2.3 |
% |
Business other |
|
|
16,489 |
|
|
|
19,561 |
|
|
|
(3,072 |
) |
|
(15.7 |
)% |
Other |
|
|
25,586 |
|
|
|
25,594 |
|
|
|
(8 |
) |
|
— |
% |
Total Revenues |
|
|
387,213 |
|
|
|
411,815 |
|
|
|
(24,602 |
) |
|
(6.0 |
)% |
Costs and Expenses: |
|
|
|
|
|
|
|
|
|||||||
Operating (excluding depreciation and amortization) |
|
|
99,858 |
|
|
|
106,265 |
|
|
|
(6,407 |
) |
|
(6.0 |
)% |
Selling, general and administrative |
|
|
96,353 |
|
|
|
89,022 |
|
|
|
7,331 |
|
|
8.2 |
% |
Depreciation and amortization |
|
|
85,635 |
|
|
|
87,305 |
|
|
|
(1,670 |
) |
|
(1.9 |
)% |
(Gain) loss on asset sales and disposals, net |
|
|
3,786 |
|
|
|
1,994 |
|
|
|
1,792 |
|
|
89.9 |
% |
Total Costs and Expenses |
|
|
285,632 |
|
|
|
284,586 |
|
|
|
1,046 |
|
|
0.4 |
% |
Income from operations |
|
|
101,581 |
|
|
|
127,229 |
|
|
|
(25,648 |
) |
|
(20.2 |
)% |
Interest expense, net |
|
|
(33,040 |
) |
|
|
(37,070 |
) |
|
|
4,030 |
|
|
(10.9 |
)% |
Other income (expense), net |
|
|
(57,201 |
) |
|
|
66,683 |
|
|
|
(123,884 |
) |
|
(185.8 |
)% |
Income before income taxes and equity method investment income (loss), net |
|
|
11,340 |
|
|
|
156,842 |
|
|
|
(145,502 |
) |
|
(92.8 |
)% |
Income tax provision (benefit) |
|
|
(22,315 |
) |
|
|
20,266 |
|
|
|
(42,581 |
) |
|
(210.1 |
)% |
Income before equity method investment income (loss), net |
|
|
33,655 |
|
|
|
136,576 |
|
|
|
(102,921 |
) |
|
(75.4 |
)% |
Equity method investment income (loss), net |
|
|
(138,893 |
) |
|
|
(33,080 |
) |
|
|
(105,813 |
) |
|
NM |
|
Net income (loss) |
|
$ |
(105,238 |
) |
|
$ |
103,496 |
|
|
$ |
(208,734 |
) |
|
(201.7 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Net Income (Loss) per Common Share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
(18.71 |
) |
|
$ |
18.46 |
|
|
$ |
(37.17 |
) |
|
(201.4 |
)% |
Diluted |
|
$ |
(18.71 |
) |
|
$ |
17.44 |
|
|
$ |
(36.15 |
) |
|
(207.3 |
)% |
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
5,623,747 |
|
|
|
5,606,607 |
|
|
|
17,140 |
|
|
0.3 |
% |
Diluted |
|
|
5,623,747 |
|
|
|
6,025,092 |
|
|
|
(401,345 |
) |
|
(6.7 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Unrealized gain (loss) on cash flow hedges and other, net of tax |
|
$ |
24,933 |
|
|
$ |
(35,624 |
) |
|
$ |
60,557 |
|
|
(170.0 |
)% |
Comprehensive income (loss) |
|
$ |
(80,305 |
) |
|
$ |
67,872 |
|
|
$ |
(148,177 |
) |
|
(218.3 |
)% |
| ____________________ |
NM = Not meaningful. |
CABLE ONE, INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
Year Ended
|
|
|
|
|
|||||||||
(dollars in thousands, except per share data) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Revenues |
|
|
|
|
|
|
|
|
|||||||
Residential data |
|
$ |
925,854 |
|
|
$ |
979,296 |
|
|
$ |
(53,442 |
) |
|
(5.5 |
)% |
Residential video |
|
|
222,036 |
|
|
|
257,966 |
|
|
|
(35,930 |
) |
|
(13.9 |
)% |
Residential voice |
|
|
31,958 |
|
|
|
37,088 |
|
|
|
(5,130 |
) |
|
(13.8 |
)% |
Business data |
|
|
228,197 |
|
|
|
222,411 |
|
|
|
5,786 |
|
|
2.6 |
% |
Business other |
|
|
72,279 |
|
|
|
82,116 |
|
|
|
(9,837 |
) |
|
(12.0 |
)% |
Other |
|
|
99,218 |
|
|
|
99,204 |
|
|
|
14 |
|
|
— |
% |
Total Revenues |
|
|
1,579,542 |
|
|
|
1,678,081 |
|
|
|
(98,539 |
) |
|
(5.9 |
)% |
Costs and Expenses: |
|
|
|
|
|
|
|
|
|||||||
Operating (excluding depreciation and amortization) |
|
|
416,819 |
|
|
|
440,916 |
|
|
|
(24,097 |
) |
|
(5.5 |
)% |
Selling, general and administrative |
|
|
365,956 |
|
|
|
354,663 |
|
|
|
11,293 |
|
|
3.2 |
% |
Depreciation and amortization |
|
|
341,754 |
|
|
|
342,891 |
|
|
|
(1,137 |
) |
|
(0.3 |
)% |
(Gain) loss on asset sales and disposals, net |
|
|
13,134 |
|
|
|
12,708 |
|
|
|
426 |
|
|
3.4 |
% |
Total Costs and Expenses |
|
|
1,137,663 |
|
|
|
1,151,178 |
|
|
|
(13,515 |
) |
|
(1.2 |
)% |
Income from operations |
|
|
441,879 |
|
|
|
526,903 |
|
|
|
(85,024 |
) |
|
(16.1 |
)% |
Interest expense, net |
|
|
(137,997 |
) |
|
|
(151,578 |
) |
|
|
13,581 |
|
|
(9.0 |
)% |
Other income (expense), net |
|
|
(59,705 |
) |
|
|
36,071 |
|
|
|
(95,776 |
) |
|
NM |
|
Income before income taxes and equity method investment income (loss), net |
|
|
244,177 |
|
|
|
411,396 |
|
|
|
(167,219 |
) |
|
(40.6 |
)% |
Income tax provision |
|
|
25,201 |
|
|
|
72,838 |
|
|
|
(47,637 |
) |
|
(65.4 |
)% |
Income before equity method investment income (loss), net |
|
|
218,976 |
|
|
|
338,558 |
|
|
|
(119,582 |
) |
|
(35.3 |
)% |
Equity method investment income (loss), net |
|
|
(204,496 |
) |
|
|
(113,936 |
) |
|
|
(90,560 |
) |
|
79.5 |
% |
Net income |
|
$ |
14,480 |
|
|
$ |
224,622 |
|
|
$ |
(210,142 |
) |
|
(93.6 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Net Income per Common Share: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
$ |
2.58 |
|
|
$ |
39.76 |
|
|
$ |
(37.18 |
) |
|
(93.5 |
)% |
Diluted |
|
$ |
3.43 |
|
|
$ |
38.08 |
|
|
$ |
(34.65 |
) |
|
(91.0 |
)% |
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|||||||
Basic |
|
|
5,621,408 |
|
|
|
5,648,934 |
|
|
|
(27,526 |
) |
|
(0.5 |
)% |
Diluted |
|
|
6,035,747 |
|
|
|
6,062,331 |
|
|
|
(26,584 |
) |
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Unrealized gain (loss) on cash flow hedges and other, net of tax |
|
$ |
11,355 |
|
|
$ |
(13,286 |
) |
|
$ |
24,641 |
|
|
(185.5 |
)% |
Comprehensive income |
|
$ |
25,835 |
|
|
$ |
211,336 |
|
|
$ |
(185,501 |
) |
|
(87.8 |
)% |
| ____________________ |
NM = Not meaningful. |
CABLE ONE, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(dollars in thousands, except par values) |
|
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
|
||||
Current Assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
153,631 |
|
|
$ |
190,289 |
|
Accounts receivable, net |
|
|
57,742 |
|
|
|
93,973 |
|
Prepaid and other current assets |
|
|
67,862 |
|
|
|
58,116 |
|
Total Current Assets |
|
|
279,235 |
|
|
|
342,378 |
|
Equity investments |
|
|
815,812 |
|
|
|
1,038,024 |
|
Property, plant and equipment, net |
|
|
1,789,955 |
|
|
|
1,791,120 |
|
Intangible assets, net |
|
|
2,532,855 |
|
|
|
2,595,892 |
|
Goodwill |
|
|
929,609 |
|
|
|
928,947 |
|
Other noncurrent assets |
|
|
178,429 |
|
|
|
63,149 |
|
Total Assets |
|
$ |
6,525,895 |
|
|
$ |
6,759,510 |
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
$ |
167,271 |
|
|
$ |
156,645 |
|
Deferred revenue |
|
|
27,889 |
|
|
|
27,169 |
|
Current portion of long-term debt |
|
|
18,712 |
|
|
|
19,023 |
|
Total Current Liabilities |
|
|
213,872 |
|
|
|
202,837 |
|
Long-term debt |
|
|
3,571,536 |
|
|
|
3,626,928 |
|
Deferred income taxes |
|
|
914,042 |
|
|
|
950,919 |
|
Other noncurrent liabilities |
|
|
30,413 |
|
|
|
169,556 |
|
Total Liabilities |
|
|
4,729,863 |
|
|
|
4,950,240 |
|
|
|
|
|
|
||||
Stockholders' Equity: |
|
|
|
|
||||
Preferred stock ( |
|
|
— |
|
|
|
— |
|
Common stock ( |
|
|
62 |
|
|
|
62 |
|
Additional paid-in capital |
|
|
639,288 |
|
|
|
607,574 |
|
Retained earnings |
|
|
1,708,244 |
|
|
|
1,761,667 |
|
Accumulated other comprehensive income (loss) |
|
|
48,100 |
|
|
|
36,745 |
|
Treasury stock, at cost (556,034 and 558,412 shares held as of December 31, 2024 and 2023, respectively) |
|
|
(599,662 |
) |
|
|
(596,778 |
) |
Total Stockholders' Equity |
|
|
1,796,032 |
|
|
|
1,809,270 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
6,525,895 |
|
|
$ |
6,759,510 |
|
CABLE ONE, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
(in thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
(105,238 |
) |
|
$ |
103,496 |
|
|
$ |
14,480 |
|
|
$ |
224,622 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||||||||||
Depreciation and amortization |
|
|
85,635 |
|
|
|
87,305 |
|
|
|
341,754 |
|
|
|
342,891 |
|
Amortization of debt discount and issuance costs |
|
|
2,303 |
|
|
|
2,215 |
|
|
|
8,923 |
|
|
|
9,019 |
|
Equity-based compensation |
|
|
8,782 |
|
|
|
7,601 |
|
|
|
31,714 |
|
|
|
29,420 |
|
Write-off of debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,340 |
|
Change in deferred income taxes |
|
|
(10,327 |
) |
|
|
5,845 |
|
|
|
(40,417 |
) |
|
|
(5,387 |
) |
(Gain) loss on asset sales and disposals, net |
|
|
3,786 |
|
|
|
1,994 |
|
|
|
13,134 |
|
|
|
12,708 |
|
Equity method investment (income) loss, net |
|
|
138,893 |
|
|
|
33,080 |
|
|
|
204,496 |
|
|
|
113,936 |
|
Fair value adjustments |
|
|
128,976 |
|
|
|
(66,591 |
) |
|
|
139,143 |
|
|
|
(39,514 |
) |
Gain on MBI Amendment |
|
|
(71,486 |
) |
|
|
— |
|
|
|
(71,486 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
707 |
|
|
|
(7,642 |
) |
|
|
36,431 |
|
|
|
(19,590 |
) |
Prepaid and other current assets |
|
|
(14,365 |
) |
|
|
3,045 |
|
|
|
(16,598 |
) |
|
|
(2,227 |
) |
Accounts payable and accrued liabilities |
|
|
8,911 |
|
|
|
(17,902 |
) |
|
|
19,894 |
|
|
|
(10,664 |
) |
Deferred revenue |
|
|
1,735 |
|
|
|
(91 |
) |
|
|
490 |
|
|
|
3,463 |
|
Other |
|
|
(10,691 |
) |
|
|
(686 |
) |
|
|
(17,830 |
) |
|
|
1,153 |
|
Net cash provided by operating activities |
|
|
167,621 |
|
|
|
151,669 |
|
|
|
664,128 |
|
|
|
663,170 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Purchase of business |
|
|
— |
|
|
|
— |
|
|
|
(4,326 |
) |
|
|
— |
|
Cash paid for MBI Amendment |
|
|
(295,214 |
) |
|
|
|
|
(295,214 |
) |
|
|
— |
|
||
Cash paid for debt and equity investments |
|
|
— |
|
|
|
(13,890 |
) |
|
|
(20,000 |
) |
|
|
(29,410 |
) |
Dividends received |
|
|
45,214 |
|
|
|
— |
|
|
|
45,214 |
|
|
|
— |
|
Capital expenditures |
|
|
(71,905 |
) |
|
|
(115,600 |
) |
|
|
(286,354 |
) |
|
|
(371,028 |
) |
Change in accrued expenses related to capital expenditures |
|
|
(2,893 |
) |
|
|
2,630 |
|
|
|
(8,682 |
) |
|
|
3,324 |
|
Purchase of wireless licenses |
|
|
— |
|
|
|
(2,750 |
) |
|
|
(625 |
) |
|
|
(2,750 |
) |
Proceeds from asset sales and disposals |
|
|
2,404 |
|
|
|
168 |
|
|
|
5,542 |
|
|
|
1,230 |
|
Proceeds from sales of equity investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56,730 |
|
Net cash used in investing activities |
|
|
(322,394 |
) |
|
|
(129,442 |
) |
|
|
(564,445 |
) |
|
|
(341,904 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from debt borrowings |
|
|
175,000 |
|
|
|
— |
|
|
|
175,000 |
|
|
|
638,000 |
|
Payment of debt issuance costs |
|
|
(1,593 |
) |
|
|
— |
|
|
|
(1,593 |
) |
|
|
(8,096 |
) |
Debt repayments |
|
|
(74,595 |
) |
|
|
(54,711 |
) |
|
|
(238,961 |
) |
|
|
(807,633 |
) |
Repurchase of common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(99,614 |
) |
Payment of withholding tax for equity awards |
|
|
(114 |
) |
|
|
(93 |
) |
|
|
(2,884 |
) |
|
|
(2,484 |
) |
Dividends paid to stockholders |
|
|
(16,935 |
) |
|
|
(16,766 |
) |
|
|
(67,903 |
) |
|
|
(66,300 |
) |
Net cash provided by (used in) financing activities |
|
|
81,763 |
|
|
|
(71,570 |
) |
|
|
(136,341 |
) |
|
|
(346,127 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Change in cash and cash equivalents |
|
|
(73,010 |
) |
|
|
(49,343 |
) |
|
|
(36,658 |
) |
|
|
(24,861 |
) |
Cash and cash equivalents, beginning of period |
|
|
226,641 |
|
|
|
239,632 |
|
|
|
190,289 |
|
|
|
215,150 |
|
Cash and cash equivalents, end of period |
|
$ |
153,631 |
|
|
$ |
190,289 |
|
|
$ |
153,631 |
|
|
$ |
190,289 |
|
|
|
|
|
|
|
|
|
|
||||||||
Supplemental cash flow disclosures: |
|
|
|
|
|
|
|
|
||||||||
Cash paid for interest, net of capitalized interest |
|
$ |
39,919 |
|
|
$ |
45,131 |
|
|
$ |
149,092 |
|
|
$ |
160,224 |
|
Cash paid for income taxes, net of refunds received |
|
$ |
5,726 |
|
|
$ |
16,151 |
|
|
$ |
81,577 |
|
|
$ |
92,456 |
|
CABLE ONE, INC. |
|||||||||||||||
RECONCILIATIONS OF NON-GAAP MEASURES |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended
|
|
|
|
|
|||||||||
(dollars in thousands) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Net income (loss) |
|
$ |
(105,238 |
) |
|
$ |
103,496 |
|
|
$ |
(208,734 |
) |
|
(201.7 |
)% |
Net profit margin |
|
|
(27.2 |
)% |
|
|
25.1 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Plus: Interest expense, net |
|
|
33,040 |
|
|
|
37,070 |
|
|
|
(4,030 |
) |
|
(10.9 |
)% |
Income tax provision (benefit) |
|
|
(22,315 |
) |
|
|
20,266 |
|
|
|
(42,581 |
) |
|
(210.1 |
)% |
Depreciation and amortization |
|
|
85,635 |
|
|
|
87,305 |
|
|
|
(1,670 |
) |
|
(1.9 |
)% |
Equity-based compensation |
|
|
8,782 |
|
|
|
7,601 |
|
|
|
1,181 |
|
|
15.5 |
% |
Severance and contract termination costs |
|
|
1,685 |
|
|
|
1,673 |
|
|
|
12 |
|
|
0.7 |
% |
Acquisition-related costs |
|
|
731 |
|
|
|
473 |
|
|
|
258 |
|
|
54.5 |
% |
(Gain) loss on asset sales and disposals, net |
|
|
3,786 |
|
|
|
1,994 |
|
|
|
1,792 |
|
|
89.9 |
% |
System conversion costs |
|
|
3,566 |
|
|
|
602 |
|
|
|
2,964 |
|
|
NM |
|
Rebranding costs |
|
|
5,205 |
|
|
|
— |
|
|
|
5,205 |
|
|
NM |
|
Equity method investment (income) loss, net |
|
|
138,893 |
|
|
|
33,080 |
|
|
|
105,813 |
|
|
NM |
|
Other (income) expense, net |
|
|
57,201 |
|
|
|
(66,683 |
) |
|
|
123,884 |
|
|
(185.8 |
)% |
Adjusted EBITDA |
|
$ |
210,971 |
|
|
$ |
226,877 |
|
|
$ |
(15,906 |
) |
|
(7.0 |
)% |
Adjusted EBITDA margin |
|
|
54.5 |
% |
|
|
55.1 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Less: Capital expenditures |
|
$ |
71,905 |
|
|
$ |
115,600 |
|
|
$ |
(43,695 |
) |
|
(37.8 |
)% |
Capital expenditures as a percentage of net income (loss) |
|
|
(68.3 |
)% |
|
|
111.7 |
% |
|
|
|
|
|||
Capital expenditures as a percentage of Adjusted EBITDA |
|
|
34.1 |
% |
|
|
51.0 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA less capital expenditures |
|
$ |
139,066 |
|
|
$ |
111,277 |
|
|
$ |
27,789 |
|
|
25.0 |
% |
| ____________________ |
NM = Not meaningful. |
|
|
Three Months Ended
|
|
|
|
|
|||||||||
(dollars in thousands) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Net cash provided by operating activities |
|
$ |
167,621 |
|
|
$ |
151,669 |
|
|
$ |
15,952 |
|
|
10.5 |
% |
Capital expenditures |
|
|
(71,905 |
) |
|
|
(115,600 |
) |
|
|
43,695 |
|
|
(37.8 |
)% |
Interest expense, net |
|
|
33,040 |
|
|
|
37,070 |
|
|
|
(4,030 |
) |
|
(10.9 |
)% |
Amortization of debt discount and issuance costs |
|
|
(2,303 |
) |
|
|
(2,215 |
) |
|
|
(88 |
) |
|
4.0 |
% |
Income tax provision (benefit) |
|
|
(22,315 |
) |
|
|
20,266 |
|
|
|
(42,581 |
) |
|
(210.1 |
)% |
Changes in operating assets and liabilities |
|
|
13,703 |
|
|
|
23,276 |
|
|
|
(9,573 |
) |
|
(41.1 |
)% |
Change in deferred income taxes |
|
|
10,327 |
|
|
|
(5,845 |
) |
|
|
16,172 |
|
|
NM |
|
Acquisition-related costs |
|
|
731 |
|
|
|
473 |
|
|
|
258 |
|
|
54.5 |
% |
Severance and contract termination costs |
|
|
1,685 |
|
|
|
1,673 |
|
|
|
12 |
|
|
0.7 |
% |
System conversion costs |
|
|
3,566 |
|
|
|
602 |
|
|
|
2,964 |
|
|
NM |
|
Rebranding costs |
|
|
5,205 |
|
|
|
— |
|
|
|
5,205 |
|
|
NM |
|
Gain on MBI Amendment |
|
|
71,486 |
|
|
|
— |
|
|
|
71,486 |
|
|
NM |
|
Fair value adjustments |
|
|
(128,976 |
) |
|
|
66,591 |
|
|
|
(195,567 |
) |
|
NM |
|
Other (income) expense, net |
|
|
57,201 |
|
|
|
(66,683 |
) |
|
|
123,884 |
|
|
(185.8 |
)% |
Adjusted EBITDA less capital expenditures |
|
$ |
139,066 |
|
|
$ |
111,277 |
|
|
$ |
27,789 |
|
|
25.0 |
% |
| ____________________ |
NM = Not meaningful. |
CABLE ONE, INC. |
|||||||||||||||
RECONCILIATIONS OF NON-GAAP MEASURES (Continued) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||
|
|
Year Ended
|
|
|
|
|
|||||||||
(dollars in thousands) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Net income |
|
$ |
14,480 |
|
|
$ |
224,622 |
|
|
$ |
(210,142 |
) |
|
(93.6 |
)% |
Net profit margin |
|
|
0.9 |
% |
|
|
13.4 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Plus: Interest expense, net |
|
|
137,997 |
|
|
|
151,578 |
|
|
|
(13,581 |
) |
|
(9.0 |
)% |
Income tax provision |
|
|
25,201 |
|
|
|
72,838 |
|
|
|
(47,637 |
) |
|
(65.4 |
)% |
Depreciation and amortization |
|
|
341,754 |
|
|
|
342,891 |
|
|
|
(1,137 |
) |
|
(0.3 |
)% |
Equity-based compensation |
|
|
31,714 |
|
|
|
29,420 |
|
|
|
2,294 |
|
|
7.8 |
% |
Severance and contract termination costs |
|
|
9,176 |
|
|
|
2,890 |
|
|
|
6,286 |
|
|
217.5 |
% |
Acquisition-related costs |
|
|
1,618 |
|
|
|
1,331 |
|
|
|
287 |
|
|
21.6 |
% |
(Gain) loss on asset sales and disposals, net |
|
|
13,134 |
|
|
|
12,708 |
|
|
|
426 |
|
|
3.4 |
% |
System conversion costs |
|
|
7,040 |
|
|
|
801 |
|
|
|
6,239 |
|
|
NM |
|
Rebranding costs |
|
|
6,765 |
|
|
|
— |
|
|
|
6,765 |
|
|
NM |
|
Government program exit costs |
|
|
906 |
|
|
|
— |
|
|
|
906 |
|
|
NM |
|
Equity method investment (income) loss, net |
|
|
204,496 |
|
|
|
113,936 |
|
|
|
90,560 |
|
|
79.5 |
% |
Other (income) expense, net |
|
|
59,705 |
|
|
|
(36,071 |
) |
|
|
95,776 |
|
|
NM |
|
Adjusted EBITDA |
|
$ |
853,986 |
|
|
$ |
916,944 |
|
|
$ |
(62,958 |
) |
|
(6.9 |
)% |
Adjusted EBITDA margin |
|
|
54.1 |
% |
|
|
54.6 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Less: Capital expenditures |
|
$ |
286,354 |
|
|
$ |
371,028 |
|
|
$ |
(84,674 |
) |
|
(22.8 |
)% |
Capital expenditures as a percentage of net income |
|
|
1977.6 |
% |
|
|
165.2 |
% |
|
|
|
|
|||
Capital expenditures as a percentage of Adjusted EBITDA |
|
|
33.5 |
% |
|
|
40.5 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA less capital expenditures |
|
$ |
567,632 |
|
|
$ |
545,916 |
|
|
$ |
21,716 |
|
|
4.0 |
% |
| ____________________ |
NM = Not meaningful. |
CABLE ONE, INC. |
|||||||||||||||
RECONCILIATIONS OF NON-GAAP MEASURES (Continued) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
Year Ended
|
|
|
|
|
|||||||||
(dollars in thousands) |
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||||
Net cash provided by operating activities |
|
$ |
664,128 |
|
|
$ |
663,170 |
|
|
$ |
958 |
|
|
0.1 |
% |
Capital expenditures |
|
|
(286,354 |
) |
|
|
(371,028 |
) |
|
|
84,674 |
|
|
(22.8 |
)% |
Interest expense, net |
|
|
137,997 |
|
|
|
151,578 |
|
|
|
(13,581 |
) |
|
(9.0 |
)% |
Amortization of debt discount and issuance costs |
|
|
(8,923 |
) |
|
|
(9,019 |
) |
|
|
96 |
|
|
(1.1 |
)% |
Income tax provision |
|
|
25,201 |
|
|
|
72,838 |
|
|
|
(47,637 |
) |
|
(65.4 |
)% |
Changes in operating assets and liabilities |
|
|
(22,387 |
) |
|
|
27,865 |
|
|
|
(50,252 |
) |
|
(180.3 |
)% |
Write-off of debt issuance costs |
|
|
— |
|
|
|
(3,340 |
) |
|
|
3,340 |
|
|
(100.0 |
)% |
Change in deferred income taxes |
|
|
40,417 |
|
|
|
5,387 |
|
|
|
35,030 |
|
|
NM |
|
Acquisition-related costs |
|
|
1,618 |
|
|
|
1,331 |
|
|
|
287 |
|
|
21.6 |
% |
Severance and contract termination costs |
|
|
9,176 |
|
|
|
2,890 |
|
|
|
6,286 |
|
|
217.5 |
% |
System conversion costs |
|
|
7,040 |
|
|
|
801 |
|
|
|
6,239 |
|
|
NM |
|
Rebranding costs |
|
|
6,765 |
|
|
|
— |
|
|
|
6,765 |
|
|
NM |
|
Government program exit costs |
|
|
906 |
|
|
|
— |
|
|
|
906 |
|
|
NM |
|
Gain on MBI Amendment |
|
|
71,486 |
|
|
|
— |
|
|
|
71,486 |
|
|
NM |
|
Fair value adjustments |
|
|
(139,143 |
) |
|
|
39,514 |
|
|
|
(178,657 |
) |
|
NM |
|
Other (income) expense, net |
|
|
59,705 |
|
|
|
(36,071 |
) |
|
|
95,776 |
|
|
NM |
|
Adjusted EBITDA less capital expenditures |
|
$ |
567,632 |
|
|
$ |
545,916 |
|
|
$ |
21,716 |
|
|
4.0 |
% |
| ____________________ |
NM = Not meaningful. |
CABLE ONE, INC. |
|||||||||||||||
OPERATING STATISTICS |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|||||||||||
|
|
As of December 31, |
|
|
|||||||||||
(in thousands, except percentages and ARPU data) |
|
2024 |
|
2023 |
|
Change |
|
% Change |
|||||||
Passings (previously called Homes Passed) |
|
|
2,841.6 |
|
|
|
2,774.9 |
|
|
|
66.7 |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Residential Customers |
|
|
983.0 |
|
|
|
994.4 |
|
|
|
(11.4 |
) |
|
(1.1 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Data PSUs(1) |
|
|
955.0 |
|
|
|
960.5 |
|
|
|
(5.5 |
) |
|
(0.6 |
)% |
Video PSUs |
|
|
107.4 |
|
|
|
134.2 |
|
|
|
(26.8 |
) |
|
(20.0 |
)% |
Voice PSUs |
|
|
67.3 |
|
|
|
79.2 |
|
|
|
(11.9 |
) |
|
(15.0 |
)% |
Total residential PSUs |
|
|
1,129.7 |
|
|
|
1,173.8 |
|
|
|
(44.1 |
) |
|
(3.8 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Business Customers |
|
|
105.9 |
|
|
|
102.6 |
|
|
|
3.2 |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Data PSUs |
|
|
100.2 |
|
|
|
98.8 |
|
|
|
1.4 |
|
|
1.4 |
% |
Video PSUs |
|
|
6.7 |
|
|
|
8.1 |
|
|
|
(1.4 |
) |
|
(16.9 |
)% |
Voice PSUs |
|
|
38.4 |
|
|
|
39.5 |
|
|
|
(1.1 |
) |
|
(2.8 |
)% |
Total business services PSUs |
|
|
145.3 |
|
|
|
146.4 |
|
|
|
(1.1 |
) |
|
(0.7 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Total Customers |
|
|
1,088.8 |
|
|
|
1,097.0 |
|
|
|
(8.2 |
) |
|
(0.7 |
)% |
Total non-video |
|
|
970.5 |
|
|
|
952.3 |
|
|
|
18.2 |
|
|
1.9 |
% |
Percent of total |
|
|
89.1 |
% |
|
|
86.8 |
% |
|
|
|
2.3 |
% |
||
|
|
|
|
|
|
|
|
|
|||||||
Data PSUs |
|
|
1,055.2 |
|
|
|
1,059.3 |
|
|
|
(4.1 |
) |
|
(0.4 |
)% |
Video PSUs |
|
|
114.1 |
|
|
|
142.3 |
|
|
|
(28.1 |
) |
|
(19.8 |
)% |
Voice PSUs |
|
|
105.8 |
|
|
|
118.7 |
|
|
|
(13.0 |
) |
|
(10.9 |
)% |
Total PSUs |
|
|
1,275.1 |
|
|
|
1,320.2 |
|
|
|
(45.2 |
) |
|
(3.4 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Penetration |
|
|
|
|
|
|
|
|
|||||||
Data |
|
|
37.1 |
% |
|
|
38.2 |
% |
|
|
|
(1.0 |
)% |
||
Video |
|
|
4.0 |
% |
|
|
5.1 |
% |
|
|
|
(1.1 |
)% |
||
Voice |
|
|
3.7 |
% |
|
|
4.3 |
% |
|
|
|
(0.6 |
)% |
||
|
|
|
|
|
|
|
|
|
|||||||
Share of Fourth Quarter Revenues |
|
|
|
|
|
|
|
|
|||||||
Residential data |
|
|
59.2 |
% |
|
|
58.8 |
% |
|
|
|
0.4 |
% |
||
Business services |
|
|
19.1 |
% |
|
|
18.4 |
% |
|
|
|
0.7 |
% |
||
Total |
|
|
78.3 |
% |
|
|
77.3 |
% |
|
|
|
1.1 |
% |
||
|
|
|
|
|
|
|
|
|
|||||||
ARPU - Fourth Quarter |
|
|
|
|
|
|
|
|
|||||||
Residential data(2) |
|
$ |
79.72 |
|
|
$ |
83.95 |
|
|
$ |
(4.23 |
) |
|
(5.0 |
)% |
Residential video(2) |
|
$ |
154.44 |
|
|
$ |
143.78 |
|
|
$ |
10.66 |
|
|
7.4 |
% |
Residential voice(2) |
|
$ |
36.05 |
|
|
$ |
36.24 |
|
|
$ |
(0.19 |
) |
|
(0.5 |
)% |
Business services(3) |
|
$ |
236.84 |
|
|
$ |
246.35 |
|
|
$ |
(9.51 |
) |
|
(3.9 |
)% |
| ____________________ | ||||
| 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 December 31, 2024 includes 2,100 residential data PSUs associated with 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/20250227855172/en/
Trish Niemann
Vice President, Communications Strategy
602-364-6372
patricia.niemann@cableone.biz
Todd Koetje
Chief Financial Officer
investor_relations@cableone.biz
Source: Cable One, Inc.
FAQ
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