Cable One Reports Second Quarter 2022 Results

Rhea-AI Summary

Cable One reported Q2 2022 revenues of $429.1 million, up 6.8% from Q2 2021, bolstered by $25.2 million from acquired operations. Residential data revenues rose 12.4%, while net income decreased 34.8% to $69.2 million. Adjusted EBITDA increased 6.7% to $227.5 million. Operating expenses grew 5.4% to $118.4 million. The company repurchased 95,837 shares costing $122 million during the quarter. At June 30, 2022, cash stood at $280 million.

Positive

• Q2 2022 revenues increased by 6.8% to $429.1 million.
• Residential data revenues grew by 12.4% compared to Q2 2021.
• Adjusted EBITDA rose by 6.7% to $227.5 million.

Negative

• Net income fell by 34.8% to $69.2 million year-over-year.
• Net cash provided by operating activities decreased 10.5% to $164.4 million.
• Adjusted EBITDA less capital expenditures dropped by 3.0% to $120.2 million.

PHOENIX--(BUSINESS WIRE)-- Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable One”) today reported financial and operating results for the quarter ended June 30, 2022.

Cable One acquired the remaining equity interests that it did not already own in Hargray Communications, a data, video and voice services provider ("Hargray"), on May 3, 2021 and acquired certain assets and assumed certain liabilities from Cable America Missouri, LLC, a data, video and voice services provider ("CableAmerica"), on December 30, 2021. Hargray and CableAmerica operations are collectively referred to as the "Acquired Operations" within this press release. Cable One contributed certain fiber operations, including from Hargray and Delta Communications, L.L.C. ("Clearwave"), to Clearwave Fiber LLC, a joint venture amongst Cable One and certain unaffiliated third-party investors ("Clearwave Fiber"), on January 1, 2022 (the "Clearwave Fiber Contribution"). The results discussed below and presented in the tables within this press release include Hargray and CableAmerica operations for the periods since their respective May 3, 2021 and December 30, 2021 acquisition dates and exclude the fiber operations contributed to Clearwave Fiber for the period since the January 1, 2022 contribution date.

Second Quarter 2022 Highlights:

• Total revenues were $429.1 million in the second quarter of 2022 compared to $401.7 million in the second quarter of 2021, an increase of 6.8%. Revenues for the second quarter of 2022 included $25.2 million of additional revenues from the Acquired Operations and the second quarter of 2021 included $5.6 million from Clearwave operations that were contributed to Clearwave Fiber. Year-over-year, residential data revenues increased 12.4% and business services revenues increased 0.1%. Residential data and business services revenues for the second quarter of 2022 included $13.6 million and $1.3 million, respectively, of additional revenues from the Acquired Operations.
• Net income was $69.2 million in the second quarter of 2022 (including $10.0 million from the Acquired Operations), a decrease of 34.8% year-over-year. Adjusted EBITDA(1) was $227.5 million in the second quarter of 2022 (including $39.6 million from the Acquired Operations), an increase of 6.7% year-over-year. Net profit margin was 16.1% and Adjusted EBITDA margin(1) was 53.0%.
• Net cash provided by operating activities was $164.4 million in the second quarter of 2022, a decrease of 10.5% year-over-year. Adjusted EBITDA less capital expenditures(1) was $120.2 million in the second quarter of 2022 (including $21.9 million from the Acquired Operations), a decrease of $3.7 million, or 3.0%, compared to the second quarter of 2021.
• Residential data primary service units (“PSUs”) grew by approximately 41,000, or 4.4%, year-over-year. Approximately 14,000 residential data PSUs were acquired in the CableAmerica acquisition and approximately 8,700 residential data PSUs were contributed to Clearwave Fiber.
• On May 20, 2022, the Company's Board of Directors authorized an additional stock repurchase program of up to $450.0 million of Cable One's common stock. The Company repurchased 95,837 shares of its common stock at an aggregate cost of $122.0 million during the second quarter of 2022.

(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.

Second Quarter 2022 Financial Results Compared to Second Quarter 2021

Revenues increased $27.3 million, or 6.8%, to $429.1 million for the second quarter of 2022 due primarily to $25.2 million of additional revenues from the Acquired Operations as well as an increase in higher margin residential data and business services revenues, partially offset by the contribution of Clearwave operations to Clearwave Fiber that generated $5.6 million of revenues in the prior year quarter and decreases in residential video and residential voice revenues.

Operating expenses (excluding depreciation and amortization) were $118.4 million in the second quarter of 2022 and increased $6.0 million, or 5.4%, compared to the second quarter of 2021. The increase in operating expenses was primarily attributable to $6.7 million of additional expenses related to the Acquired Operations and higher labor and other compensation-related costs, partially offset by lower programming expenses as a result of video customer losses. Operating expenses as a percentage of revenues were 27.6% and 28.0% for the second quarter of 2022 and 2021, respectively.

Selling, general and administrative expenses were $90.8 million and $88.0 million for the second quarter of 2022 and 2021, respectively. The increase in selling, general and administrative expenses was primarily attributable to $1.1 million of additional expenses related to the Acquired Operations and increases in labor and other compensation-related costs, bad debt expense, marketing costs and professional fees, partially offset by lower acquisition-related costs and system conversion costs. Selling, general and administrative expenses as a percentage of revenues were 21.2% and 21.9% for the second quarter of 2022 and 2021, respectively.

Depreciation and amortization expense was $88.4 million for the second quarter of 2022 and increased $3.5 million, or 4.1%, compared to the second quarter of 2021. The increase in depreciation and amortization expense was primarily due to $8.6 million of additional expenses from the Acquired Operations, partially offset by lower expenses resulting from the Clearwave Fiber Contribution. Depreciation and amortization expense as a percentage of revenues was 20.6% and 21.1% for the second quarter of 2022 and 2021, respectively.

The Company recognized $8.3 million in non-cash losses associated with the dispositions of our Tallahassee, Florida system and certain other non-core assets during the second quarter of 2022.

Other income, net, was $8.1 million for the second quarter of 2022 and consisted primarily of a $6.3 million non-cash gain on fair value adjustment associated with the call and put options to acquire the remaining equity interests in Mega Broadband Investments Holdings LLC (the "MBI Net Option") and interest and investment income. Other income, net, was $12.1 million for the second quarter of 2021 and consisted primarily of a $33.4 million non-cash gain on fair value adjustment associated with the Company's existing investment in Hargray upon the acquisition of Hargray and interest and investment income, partially offset by a $21.4 million non-cash loss on fair value adjustment associated with the MBI Net Option.

Income tax provision was $22.8 million for the second quarter of 2022 compared to an income tax benefit of $8.6 million for the second quarter of 2021. The Company’s effective tax rate was 23.5% and -8.7% for the second quarter of 2022 and 2021, respectively. The prior year included a $35.4 million increase in income tax benefit from the reversal of a pre-existing deferred tax liability on the Company's investment in Hargray upon the acquisition of Hargray.

Net income was $69.2 million in the second quarter of 2022 compared to $106.2 million in the prior year quarter.

Adjusted EBITDA was $227.5 million (including $39.6 million from the Acquired Operations) and $213.2 million for the second quarter of 2022 and 2021, respectively, an increase of 6.7%. Capital expenditures for the second quarter of 2022 totaled $107.3 million (including $17.8 million from the Acquired Operations) compared to $89.3 million for the second quarter of 2021. Adjusted EBITDA less capital expenditures for the second quarter of 2022 was $120.2 million (including $21.9 million from the Acquired Operations) compared to $123.9 million in the prior year quarter, a decrease of 3.0%.

Liquidity and Capital Resources

At June 30, 2022, the Company had $280.0 million of cash and cash equivalents on hand compared to $388.8 million at December 31, 2021. The Company’s debt balance was approximately $3.9 billion at both June 30, 2022 and December 31, 2021. The Company had $448.8 million available for borrowing under its revolving credit facility as of June 30, 2022.

The Company paid $16.4 million in dividends to stockholders and repurchased 95,837 shares of its common stock at an aggregate cost of $122.0 million during the second quarter of 2022. The Company had $403.4 million of remaining share repurchase authorization as of June 30, 2022.

Conference Call

Cable One will host a conference call with the financial community to discuss results for the second quarter of 2022 on Thursday, August 4, 2022, at 5 p.m. Eastern Time (ET).

The conference call will be available via a live audio webcast on the Cable One Investor Relations website at ir.cableone.net or by dialing 1-844-200-6205 (International: 1-929-526-1599) and using the access code 847214. 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 August 4, 2022 until August 18, 2022 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 June 30, 2022, 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 interest expense, income tax provision (benefit), depreciation and amortization, equity-based compensation, (gain) loss on deferred compensation, acquisition-related costs, (gain) loss on asset sales and disposals, system conversion costs, rebranding costs, (gain) loss on sales of businesses, equity method investment (income) loss, other (income) expense and other unusual 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, interest expense, income tax provision (benefit), changes in operating assets and liabilities, change in deferred income taxes and other unusual 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 and capital expenditures are also significant performance measures 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 committed to connecting customers and communities to what matters most. Through Sparklight® and the associated Cable One family of brands, the Company serves more than 1.1 million residential and business customers in 24 states as of June 30, 2022. Over its fiber-optic infrastructure, the Cable One family of brands provide residential customers with a wide array of connectivity and entertainment services, including Gigabit speeds, advanced WiFi and video. For businesses ranging from small and mid-market up to enterprise, wholesale and carrier, the Company offers scalable, cost-effective solutions that enable businesses of all sizes to grow, compete and succeed.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication 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, dividend policy, 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 latest Annual Report on Form 10-K as filed with the SEC:

• the duration and severity of the COVID-19 pandemic and its effects on the Company’s business, financial condition, results of operations and cash flows;
• rising levels of competition from historical and new entrants in the Company’s markets;
• recent and future changes in technology;
• the Company’s ability to continue to grow its business services products;
• 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 Hargray acquisition;
• risks relating to existing or future acquisitions and strategic investments by the Company;
• risks that the implementation of the Company’s new enterprise resource planning 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;
• 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;
• 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;
• the transition away from the London Interbank Offered Rate and the adoption of alternative reference rates;
• 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 and changes in rates of inflation;
• lower demand for the Company's residential data and business services;
• 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;
• 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 as filed 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 June 30,
(dollars in thousands, except per share data)		2022				2021				Change				% Change
Revenues:
Residential data		$	233,330			$	207,648			$	25,682			12.4	%
Residential video			84,761				87,240				(2,479	)		(2.8	)%
Residential voice			10,715				12,112				(1,397	)		(11.5	)%
Business services			76,660				76,616				44			0.1	%
Other			23,619				18,133				5,486			30.3	%
Total Revenues			429,085				401,749				27,336			6.8	%
Costs and Expenses:
Operating (excluding depreciation and amortization)			118,393				112,350				6,043			5.4	%
Selling, general and administrative			90,787				88,017				2,770			3.1	%
Depreciation and amortization			88,423				84,915				3,508			4.1	%
(Gain) loss on asset sales and disposals, net			2,173				1,058				1,115			105.4	%
(Gain) loss on sales of businesses			8,253				-				8,253			NM
Total Costs and Expenses			308,029				286,340				21,689			7.6	%
Income from operations			121,056				115,409				5,647			4.9	%
Interest expense			(32,080	)			(28,947	)			(3,133	)		10.8	%
Other income (expense), net			8,066				12,149				(4,083	)		(33.6	)%
Income before income taxes and equity method investment income (loss), net			97,042				98,611				(1,569	)		(1.6	)%
Income tax provision (benefit)			22,773				(8,616	)			31,389			NM
Income before equity method investment income (loss), net			74,269				107,227				(32,958	)		(30.7	)%
Equity method investment income (loss), net			(5,024	)			(1,074	)			(3,950	)		NM
Net income		$	69,245			$	106,153			$	(36,908	)		(34.8	)%
Net Income per Common Share:
Basic		$	11.64			$	17.65			$	(6.01	)		(34.1	)%
Diluted		$	11.11			$	16.68			$	(5.57	)		(33.4	)%
Weighted Average Common Shares Outstanding:
Basic			5,946,507				6,014,351				(67,844	)		(1.1	)%
Diluted			6,369,649				6,455,817				(86,168	)		(1.3	)%
Unrealized gain (loss) on cash flow hedges and other, net of tax		$	32,646			$	(16,021	)		$	48,667			NM
Comprehensive income		$	101,891			$	90,132			$	11,759			13.0	%

NM = Not meaningful.

CABLE ONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands, except par values)		June 30, 2022				December 31, 2021
Assets
Current Assets:
Cash and cash equivalents		$	279,978			$	388,802
Accounts receivable, net			63,073				56,253
Income taxes receivable			13,659				24,193
Prepaid and other current assets			39,311				31,705
Total Current Assets			396,021				500,953
Equity investments			1,185,518				727,565
Property, plant and equipment, net			1,631,251				1,854,104
Intangible assets, net			2,708,895				2,861,137
Goodwill			928,947				967,913
Other noncurrent assets			44,444				42,322
Total Assets		$	6,895,076			$	6,953,994
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities		$	164,780			$	203,387
Deferred revenue			23,113				26,851
Current portion of long-term debt			47,374				38,837
Total Current Liabilities			235,267				269,075
Long-term debt			3,778,181				3,799,500
Deferred income taxes			915,494				854,156
Interest rate swap liability			-				81,627
Other noncurrent liabilities			60,630				156,541
Total Liabilities			4,989,572				5,160,899
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 5,916,571 and 6,046,362 shares outstanding as of June 30, 2022 and December 31, 2021, respectively)			62				62
Additional paid-in capital			566,796				555,640
Retained earnings			1,664,176				1,456,543
Accumulated other comprehensive income (loss)			7,255				(82,795	)
Treasury stock, at cost (258,828 and 129,037 shares held as of June 30, 2022 and December 31, 2021, respectively)			(332,785	)			(136,355	)
Total Stockholders' Equity			1,905,504				1,793,095
Total Liabilities and Stockholders' Equity		$	6,895,076			$	6,953,994

CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP MEASURES
(Unaudited)
		Three Months Ended June 30,
(dollars in thousands)		2022				2021				Change				% Change
Net income		$	69,245			$	106,153			$	(36,908	)		(34.8	)%
Net profit margin			16.1	%			26.4	%
Plus: Interest expense			32,080				28,947				3,133			10.8	%
Income tax provision (benefit)			22,773				(8,616	)			31,389			NM
Depreciation and amortization			88,423				84,915				3,508			4.1	%
Equity-based compensation			5,951				5,279				672			12.7	%
(Gain) loss on deferred compensation			(94	)			78				(172	)		(220.5	)%
Acquisition-related costs			1,221				4,835				(3,614	)		(74.7	)%
(Gain) loss on asset sales and disposals, net			2,173				1,058				1,115			105.4	%
System conversion costs			498				1,618				(1,120	)		(69.2	)%
Rebranding costs			-				26				(26	)		(100.0	)%
(Gain) loss on sales of businesses			8,253				-				8,253			NM
Equity method investment (income) loss, net			5,024				1,074				3,950			NM
Other (income) expense, net			(8,066	)			(12,149	)			4,083			(33.6	)%
Adjusted EBITDA		$	227,481			$	213,218			$	14,263			6.7	%
Adjusted EBITDA margin			53.0	%			53.1	%
Less: Capital expenditures		$	107,289			$	89,312			$	17,977			20.1	%
Capital expenditures as a percentage of net income			154.9	%			84.1	%
Capital expenditures as a percentage of Adjusted EBITDA			47.2	%			41.9	%
Adjusted EBITDA less capital expenditures		$	120,192			$	123,906			$	(3,714	)		(3.0	)%

NM = Not meaningful.

		Three Months Ended June 30,
(dollars in thousands)		2022				2021				Change				% Change
Net cash provided by operating activities		$	164,365			$	183,632			$	(19,267	)		(10.5	)%
Capital expenditures			(107,289	)			(89,312	)			(17,977	)		20.1	%
Interest expense			32,080				28,947				3,133			10.8	%
Non-cash interest expense			(2,397	)			(2,875	)			478			(16.6	)%
Income tax provision (benefit)			22,773				(8,616	)			31,389			NM
Changes in operating assets and liabilities			16,906				(10,721	)			27,627			NM
Change in deferred income taxes			(5,794	)			18,031				(23,825	)		(132.1	)%
(Gain) loss on deferred compensation			(94	)			78				(172	)		(220.5	)%
Acquisition-related costs			1,221				4,835				(3,614	)		(74.7	)%
Write-off of debt issuance costs			-				(1,644	)			1,644			(100.0	)%
System conversion costs			498				1,618				(1,120	)		(69.2	)%
Rebranding costs			-				26				(26	)		(100.0	)%
Fair value adjustments			5,989				(21,350	)			27,339			(128.1	)%
Gain on step acquisition			-				33,406				(33,406	)		(100.0	)%
Other (income) expense, net			(8,066	)			(12,149	)			4,083			(33.6	)%
Adjusted EBITDA less capital expenditures		$	120,192			$	123,906			$	(3,714	)		(3.0	)%

NM = Not meaningful.

CABLE ONE, INC.
OPERATING STATISTICS
(Unaudited)
		As of June 30,								Change
(in thousands, except percentages and ARPU data)		2022				2021				Amount				%
Homes Passed			2,690				2,637				53			2.0	%
Residential Customers			1,025				1,032				(7	)		(0.7	)%
Data PSUs			964				923				41			4.4	%
Video PSUs			208				272				(64	)		(23.6	)%
Voice PSUs			99				110				(11	)		(10.2	)%
Total residential PSUs			1,270				1,305				(35	)		(2.6	)%
Business Customers			102				102				(1	)		(0.8	)%
Data PSUs			96				94				2			1.7	%
Video PSUs			13				14				(2	)		(13.3	)%
Voice PSUs			41				44				(3	)		(5.8	)%
Total business services PSUs			149				152				(3	)		(1.9	)%
Total Customers			1,126				1,134				(8	)		(0.7	)%
Total non-video			903				841				62			7.3	%
Percent of total			80.2	%			74.2	%						6.0	%
Data PSUs			1,059				1,017				43			4.2	%
Video PSUs			221				287				(66	)		(23.1	)%
Voice PSUs			140				153				(14	)		(9.0	)%
Total PSUs			1,420				1,457				(37	)		(2.6	)%
Penetration
Data			39.4	%			38.5	%						0.8	%
Video			8.2	%			10.9	%						(2.7	)%
Voice			5.2	%			5.8	%						(0.6	)%
Share of Second Quarter Revenues
Residential data			54.4	%			51.7	%						2.7	%
Business services			17.9	%			19.1	%						(1.2	)%
Total			72.2	%			70.8	%						1.5	%
ARPU - Second Quarter
Residential data(1)		$	80.44			$	78.34			$	2.10			2.7	%
Residential video(1)		$	130.28			$	110.32			$	19.96			18.1	%
Residential voice(1)		$	35.52			$	39.28			$	(3.76	)		(9.6	)%
Business services(2)		$	252.00			$	263.86			$	(11.86	)		(4.5	)%

Note:		All totals, percentages and year-over-year changes are calculated using exact numbers. Minor differences may exist due to rounding.
(1)		Average monthly revenue per unit (“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.
(2)		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/20220804005149/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

What were Cable One's Q2 2022 financial results?

Cable One reported Q2 2022 revenues of $429.1 million, a 6.8% increase from the previous year.

How much did Cable One repurchase in stock during Q2 2022?

Cable One repurchased 95,837 shares at a total cost of $122 million during Q2 2022.

What was Cable One's net income for Q2 2022?

Net income for Cable One in Q2 2022 was $69.2 million, down 34.8% from the previous year.

Did Cable One's residential data revenues increase in Q2 2022?

Yes, residential data revenues increased by 12.4% year-over-year in Q2 2022.

What was the adjusted EBITDA for Cable One in Q2 2022?

Cable One's adjusted EBITDA for Q2 2022 was $227.5 million, an increase of 6.7% year-over-year.