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,
2017.
Second quarter 2017 highlights:
-
The Company completed the acquisition of RBI Holding LLC (“NewWave”)
on May 1, 2017.
-
Net income was $28.6 million in the second quarter of 2017, an
increase of 7.3% year-over-year. Adjusted EBITDA(1) was
$113.3 million, an increase of 26.8% year-over-year. Net profit margin
was 11.9% and Adjusted EBITDA margin(1) was 47.0%.
-
Net income and Adjusted EBITDA results in the second quarter of 2017
include two months of NewWave operations following completion of the
acquisition and the favorable impact of a reduction in expense of $5.1
million due to a change in accounting estimate related to capitalized
labor costs effective since the first quarter of 2017.
-
Without the contribution from the NewWave operations, net income would
have been $26.5 million and Adjusted EBITDA growth would have been
14.2%. In addition, net profit margin would have been 12.7% and
Adjusted EBITDA margin would have been 48.8%.
-
Excluding both the NewWave impact and the change in estimate related
to capitalized labor, net income would have been $23.4 million and
Adjusted EBITDA growth would have been 8.4%. Further, net profit
margin would have been 11.2% and Adjusted EBITDA margin would have
been 46.4%.
-
Net cash provided by operating activities was $52.6 million, an
increase of 9.5% year-over-year. Adjusted EBITDA less capital
expenditures(1) was $72.8 million, an increase of 40.8%
compared to the second quarter of 2016.
-
Total revenues were $241.0 million, including a $32.2 million
contribution from NewWave operations, compared to $204.6 million in
the second quarter of 2016.
-
Residential data revenues increased $17.1 million, or 19.9%,
year-over-year to $103.2 million. Residential data revenues growth
would have been $6.4 million, or 7.4%, excluding the $10.7 million
contribution from NewWave operations.
-
Business services revenues increased $8.1 million, or 32.9%,
year-over-year to $32.5 million. Business services revenues growth
would have been $3.4 million, or 13.9%, excluding the $4.7 million
contribution from NewWave operations.
| (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 Metrics.” 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 reconciled
to net cash provided by operating activities. Refer to the
“Reconciliations of Non-GAAP Measures” tables within this press
release.
|
“Our second quarter once again yielded strong results as we continue to
execute our strategy, with legacy Cable ONE demonstrating top line
revenue growth, higher Adjusted EBITDA and industry leading margins,”
said Julie Laulis, President and CEO of Cable ONE. “We also are excited
about our acquisition of NewWave, and its results are now contributing
to our success.”
Second Quarter 2017 Financial Results Compared to Second Quarter
2016
Revenues increased $36.5 million, or 17.8%, due primarily to $32.2
million in revenues attributable to the NewWave operations. For the
second quarter of 2017 and 2016, residential data revenues comprised
42.8% and 42.1% of total revenues and business services revenues
comprised 13.5% and 12.0% of total revenues, respectively. Excluding the
$32.2 million contribution from NewWave in the second quarter of 2017,
revenues would have increased $4.3 million, or 2.1%, from the prior year
quarter, with increases in residential data and business services more
than offsetting decreases in residential video and residential voice.
Operating expenses (excluding depreciation and amortization) were $83.9
million in the second quarter of 2017 and increased $8.2 million, or
10.8%, compared to the second quarter of 2016. Operating expenses as a
percentage of revenues were 34.8% for the second quarter of 2017
compared to 37.0% for the year-ago quarter. Additional operating
expenses attributable to the NewWave operations were $15.9 million for
the second quarter of 2017. This increase was partially offset by a $3.9
million decrease in labor costs associated with our aforementioned
change in accounting estimate for capitalized labor costs, a $1.6
million decrease in programming costs resulting from fewer video
subscribers and a decrease in backbone and internet connectivity fees.
Excluding the impact of the NewWave operations, operating expenses would
have been $68.0 million in the second quarter of 2017, a decrease of
$7.7 million, or 10.2%. Operating expenses as a percentage of revenues,
excluding the impact of the NewWave operations, would have been 32.6% in
the second quarter of 2017 compared to 37.0% in the second quarter of
2016.
Selling, general and administrative expenses increased $7.7 million, or
17.7%, to $51.2 million. Selling, general and administrative expenses as
a percentage of revenues were 21.2% and 21.3% for the second quarter of
2017 and 2016, respectively. Additional selling, general and
administrative expenses attributable to the NewWave operations were $5.0
million for the second quarter of 2017. The remaining increase was due
to higher acquisition-related expenses of $2.8 million and severance
costs of $1.3 million, partially offset by a $1.2 million decrease in
labor costs in the second quarter of 2017 associated with our
aforementioned change in accounting estimate for capitalized labor
costs. Excluding the incremental expenses associated with the NewWave
operations, selling, general and administrative expenses would have
increased $2.7 million, or 6.2%, to $46.2 million. Selling, general and
administrative expenses as a percentage of revenues, excluding the
impact of the NewWave operations, would have been 22.1% in the second
quarter of 2017 compared to 21.3% in the second quarter of 2016.
Depreciation and amortization increased $12.2 million, or 35.2%,
including $7.9 million attributable to the NewWave operations. The
increase was due primarily to new assets placed in service since the
second quarter of 2016, including property, plant and equipment and
amortized intangible assets acquired as part of the NewWave acquisition,
partially offset by assets that became fully depreciated since the
second quarter of 2016. As a percentage of revenues, depreciation and
amortization expense was 19.5% for the second quarter of 2017 compared
to 17.0% for the second quarter of 2016.
Interest expense increased $4.2 million, or 56.1%, due primarily to
additional debt incurred during the second quarter of 2017 to finance
the NewWave acquisition.
Net income increased $1.9 million, or 7.3%, to $28.6 million in the
second quarter of 2017 compared to $26.6 million in the prior year
period. Excluding the impact of the NewWave operations, net income would
have been $26.5 million. Without both the NewWave impact and the change
in estimate for capitalized labor, net income would have been $23.4
million in the second quarter of 2017.
Adjusted EBITDA was $113.3 million and $89.4 million for the second
quarter of 2017 and 2016, respectively. The Adjusted EBITDA growth of
26.8% in the second quarter of 2017 includes the positive impact of the
NewWave operations and the aforementioned capitalized labor costs.
Without the impact of the NewWave operations, Adjusted EBITDA would have
been $102.0 million and Adjusted EBITDA growth would have been 14.2% for
the second quarter of 2017. Excluding both the NewWave impact and the
change in estimate for capitalized labor, Adjusted EBITDA would have
been $96.9 million and Adjusted EBITDA growth would have been 8.4%.
Capital expenditures totaled $40.5 million and $37.6 million for the
second quarter of 2017 and 2016, respectively. Adjusted EBITDA less
capital expenditures for the second quarter of 2017 was $72.8 million,
an increase of $21.1 million, or 40.8%, from the prior year period.
Excluding the NewWave operations, capital expenditures would have been
$35.5 million. Excluding both the NewWave operations and the change in
estimate related to capitalized labor, capital expenditures would have
been $30.4 million.
Liquidity and Capital Resources
At June 30, 2017, the Company had $89.8 million of cash and cash
equivalents on hand, compared to $138.0 million at December 31, 2016.
The Company’s debt balance, excluding unamortized debt issuance costs,
was $1.2 billion, which included $750 million of term loan borrowings in
connection with the NewWave acquisition, at June 30, 2017 and $545.3
million at December 31, 2016. The Company also had $197.2 million
available for borrowing under its revolving credit facility as of June
30, 2017.
Conference Call
Cable ONE will host a conference call with the financial community to
discuss results for the second quarter of the 2017 fiscal year on
Tuesday, August 8, 2017, at 11 a.m. Eastern Time (ET).
Shareholders, analysts and other interested parties may register for the
conference in advance at http://dpregister.com/10109264.
Those unable to pre-register may join the call via the live audio
webcast on the Cable
ONE Investor Relations website or by dialing 1-844-378-6483 (Canada:
1-855-669-9657/International: 1-412-542-4178) shortly before 11 a.m. ET.
A replay of the call will be available from Wednesday, August 9, 2017,
until Wednesday, August 23, 2017, on the Cable
ONE Investor Relations website.
Additional Information Available on Website
The information in this press release should be read in conjunction with
the financial statements and footnotes contained in the Company’s
Quarterly Report on Form 10-Q for the period ended June 30, 2017, 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 U.S.
Securities and Exchange Commission (the “SEC”). Investors and others
interested in more information about Cable ONE should consult our
website, which is regularly updated with financial and other important
information about the Company.
Use of Non-GAAP Financial Metrics
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
and Adjusted EBITDA less capital expenditures are non-GAAP financial
measures and should be considered in addition to, not as a substitute
for, net income, net profit margin or net cash provided by operating
activities reported in accordance with GAAP. These terms, as defined by
Cable ONE, may not be comparable to similarly titled measures reported
by other companies. Adjusted EBITDA and Adjusted EBITDA less capital
expenditures are reconciled to net income, and Adjusted EBITDA margin is
reconciled to net profit margin, in the “Reconciliations of Non-GAAP
Measures” tables within this press release. Adjusted EBITDA less
capital expenditures is also reconciled to net cash provided by
operating activities in the “Reconciliations of Non-GAAP Measures”
tables within this press release.
“Adjusted EBITDA” is defined as net income plus interest expense,
provision for income taxes, depreciation and amortization, equity-based
compensation expense, severance expense, (gain) loss on deferred
compensation, acquisition-related costs, (gain) loss on disposal of
assets, other (income) expense, net and other unusual operating
expenses, 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 financing. These costs are evaluated through other financial
metrics.
“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,
provision for income taxes, changes in operating assets and liabilities
and other unusual operating expenses, as provided in the “Reconciliations
of Non-GAAP Measures” tables within this press release.
The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted
EBITDA less capital expenditures 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 leverage ratio calculation under the Company’s credit
facilities and outstanding 5.75% senior unsecured notes due 2022 to
determine compliance with the covenants contained in the facilities and
notes. For the purpose of calculating compliance with leverage
covenants, the Company uses a measure similar to Adjusted EBITDA, as
presented. Adjusted EBITDA and capital expenditures are also significant
performance measures used by the Company in its annual incentive
compensation program. 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 Adjusted EBITDA and Adjusted EBITDA margin 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
shareholders.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital
expenditures 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 and Adjusted EBITDA less capital
expenditures may not be directly comparable to similarly titled measures
reported by other companies.
About Cable ONE
Cable One, Inc. (NYSE: CABO) is the seventh-largest cable company in the
United States. Serving more than 800,000 customers in 21 states with
high-speed internet, cable television and telephone service, Cable ONE
provides consumers with a wide range of the latest products and
services, including wireless internet service, high-definition
programming and phone service with free, unlimited long-distance calling
in the continental U.S.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication contains “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 cable industry and our business and financial
results. Forward-looking statements often include words such as
“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. Our actual
results may vary materially from those expressed or implied in our
forward-looking statements. Accordingly, undue reliance should not be
placed on any forward-looking statement made by us or on our behalf.
Important factors that could cause our actual results to differ
materially from those in our forward-looking statements include
government regulation, economic, strategic, political and social
conditions and the following factors:
-
the effect of our acquisition of NewWave on our ability to retain and
hire key personnel and to maintain relationships with customers,
suppliers and other business partners;
-
the potential diversion of senior management’s attention from our
ongoing operations due to the acquisition of NewWave;
-
uncertainties as to our ability and the amount of time necessary to
realize the expected synergies and other benefits of the NewWave
transaction;
-
our ability to integrate NewWave’s operations into our own in an
efficient and effective manner;
-
rising levels of competition from historical and new entrants in our
markets;
-
recent and future changes in technology;
-
our ability to continue to grow our business services product;
-
increases in programming costs and retransmission fees;
-
our ability to obtain support from vendors;
-
the effects of any significant acquisitions by us;
-
adverse economic conditions;
-
the integrity and security of our network and information systems;
-
legislative and regulatory efforts to impose new legal requirements on
our data services;
-
changing and additional regulation of our data, video and voice
services;
-
our ability to renew cable system franchises;
-
increases in pole attachment costs;
-
the failure to meet earnings expectations;
-
the adequacy of our risk management framework;
-
changes in tax and other laws and regulations;
-
changes in GAAP or other applicable accounting policies; and
-
the other risks and uncertainties detailed in the section titled “Risk
Factors” in our Annual Report on Form 10-K as filed with the SEC on
March 1, 2017.
Any forward-looking statements made by us in this communication speak
only as of the date on which they are made. We are under no obligation
to, and expressly disclaim any obligation to, update or alter our
forward-looking statements, whether as a result of new information,
subsequent events or otherwise.
CABLE ONE, INC.
CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited) |
|
|
| | |
|
| | | |
| |
| | | Three Months Ended
June 30, | | | | | | | | |
|
(dollars in thousands, except per share and share data)
| | | 2017 | | 2016 | | | | $ Change | | | % Change |
|
Revenues
| | | | | | | | | | | | | | | |
|
Residential data
| | |
$
|
103,155
| |
$
|
86,031
| | | |
$
|
17,124
| | |
19.9
|
%
|
|
Residential video
| | | |
84,873
| | |
74,016
| | | | |
10,857
| | |
14.7
|
%
|
|
Residential voice
| | | |
11,417
| | |
10,944
| | | | |
473
| | |
4.3
|
%
|
|
Business services
| | | |
32,543
| | |
24,491
| | | | |
8,052
| | |
32.9
|
%
|
|
Advertising sales
| | | |
5,970
| | |
6,616
| | | | |
(646
|
)
| |
(9.8
|
)%
|
|
Other
| | |
|
3,084
| |
|
2,459
| | | |
|
625
| | |
25.4
|
%
|
|
Total Revenues
| | | |
241,042
| | |
204,557
| | | | |
36,485
| | |
17.8
|
%
|
|
Costs and Expenses
| | | | | | | | | | | | | | | |
|
Operating (excluding depreciation and amortization)
| | | |
83,849
| | |
75,672
| | | | |
8,177
| | |
10.8
|
%
|
|
Selling, general and administrative
| | | |
51,194
| | |
43,482
| | | | |
7,712
| | |
17.7
|
%
|
|
Depreciation and amortization
| | | |
46,890
| | |
34,689
| | | | |
12,201
| | |
35.2
|
%
|
|
(Gain) loss on disposal of assets
| | |
|
462
| |
|
157
| | | |
|
305
| | |
194.3
|
%
|
|
Total operating costs and expenses
| | |
|
182,395
| |
|
154,000
| | | |
|
28,395
| | |
18.4
|
%
|
|
Income from operations
| | | |
58,647
| | |
50,557
| | | | |
8,090
| | |
16.0
|
%
|
|
Interest expense
| | | |
(11,782
|
)
| |
(7,549
|
)
| | | |
(4,233
|
)
| |
56.1
|
%
|
|
Other income (expense), net
| | |
|
(322
|
)
|
|
183
| | | |
|
(505
|
)
| |
NM
| |
|
Income before income taxes
| | | |
46,543
| | |
43,191
| | | | |
3,352
| | |
7.8
|
%
|
|
Provision for income taxes
| | |
|
17,967
| |
|
16,558
| | | |
|
1,409
| | |
8.5
|
%
|
|
Net income
| | |
$
|
28,576
| |
$
|
26,633
| | | |
$
|
1,943
| | |
7.3
|
%
|
| | | | | | | | | | | | | | |
|
|
Other comprehensive gain (loss), net of tax
| | |
|
2
| |
|
(28
|
)
| | | | | | | |
|
Comprehensive income
| | |
$
|
28,578
| |
$
|
26,605
| | | | | | | | |
| | | | | | | | | | | | | | |
|
|
Net income per common share:
| | | | | | | | | | | | | | | |
|
Basic
| | |
$
|
5.03
| |
$
|
4.64
| | | | | | | | |
|
Diluted
| | |
$
|
4.97
| |
$
|
4.62
| | | | | | | | |
|
Weighted average common shares outstanding:
| | | | | | | | | | | | | | | |
|
Basic
| | | |
5,678,394
| | |
5,743,465
| | | | | | | | |
|
Diluted
| | | |
5,745,617
| | |
5,766,312
| | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
NM = Not meaningful.
|
|
|
|
|
CABLE ONE, INC.
CONSOLIDATED BALANCE SHEETS |
|
|
| |
|
| |
| | | (Unaudited) | | | |
|
(in thousands, except par value and share data)
| | | June 30, 2017 | | | December 31, 2016 |
| Assets | | | | | | | | |
|
Current Assets:
| | | | | | | | | |
|
Cash and cash equivalents
| | |
$
|
89,793
| | | |
$
|
138,040
| | |
|
Accounts receivable, net
| | | |
45,812
| | | | |
32,526
| | |
|
Income tax receivable
| | | |
16,539
| | | | |
4,547
| | |
|
Prepaid assets
| | |
|
13,256
|
| | |
|
10,824
|
| |
|
Total Current Assets
| | | |
165,400
| | | | |
185,937
| | |
|
Property, plant and equipment, net
| | | |
803,383
| | | | |
619,621
| | |
|
Intangibles, net
| | | |
971,673
| | | | |
497,480
| | |
| Goodwill | | | |
178,374
| | | | |
84,928
| | |
|
Other assets
| | |
|
5,664
|
| | |
|
9,305
|
| |
|
Total Assets
| | |
$
|
2,124,494
|
| | |
$
|
1,397,271
|
| |
| | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | |
|
Current Liabilities:
| | | | | | | | | |
|
Accounts payable and accrued liabilities
| | |
$
|
86,601
| | | |
$
|
82,703
| | |
|
Deferred revenue
| | | |
36,795
| | | | |
22,190
| | |
|
Long-term debt - current portion
| | |
|
11,250
|
| | |
|
6,250
|
| |
|
Total Current Liabilities
| | | |
134,646
| | | | |
111,143
| | |
|
Long-term debt
| | | |
1,167,458
| | | | |
530,886
| | |
|
Deferred income taxes
| | | |
294,850
| | | | |
276,297
| | |
|
Accrued compensation and other liabilities
| | |
|
24,392
|
| | | |
24,434
|
| |
|
Total Liabilities
| | |
|
1,621,346
|
| | | |
942,760
|
| |
| | | | | | | | |
|
|
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;
5,887,899
shares issued; and 5,725,095 and 5,708,223 shares
outstanding
as of June 30, 2017 and December 31, 2016, respectively)
| | | |
59
| | | | |
59
| | |
Additional paid-in capital
| | | |
22,514
| | | | |
17,669
| | |
|
Retained earnings
| | | |
556,401
| | | | |
511,776
| | |
|
Accumulated other comprehensive loss
| | | |
(442
|
)
| | | |
(446
|
)
|
|
Treasury stock, at cost (162,804 and 179,676 shares held as of
June
30, 2017 and December 31, 2016, respectively)
| | |
|
(75,384
|
)
| | |
|
(74,547
|
)
|
|
|
Total Stockholders’ Equity
| | |
|
503,148
|
| | |
|
454,511
|
| |
|
Total Liabilities and Stockholders' Equity
| | |
$
|
2,124,494
|
| | |
$
|
1,397,271
|
| |
| | | | | | | | | | |
|
| | | | | | | | | | |
|
CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP MEASURES
(Unaudited) |
|
|
| | |
|
| | | | |
| | |
| Three Months Ended
June 30, | | | | | | |
|
(dollars in thousands)
| | | 2017 |
| 2016 | | | $ Change | | % Change |
| | | | | | | | | | | | | | | |
|
|
Net income (1) | | |
$
|
28,576
| | |
$
|
26,633
| | | |
$
|
1,943
| |
7.3
|
%
|
| | | | | | | | | | | | |
|
| Net profit margin | | | | 11.9 | % | | | 13.0 | % | | | | | | |
| | | | | | | | | | | | | |
|
|
Plus:
|
Interest expense
| | | |
11,782
| | | |
7,549
| | | | |
4,233
| |
56.1
|
%
|
|
Provision for income taxes
| | | |
17,967
| | | |
16,558
| | | | |
1,409
| |
8.5
|
%
|
|
Depreciation and amortization
| | | |
46,890
| | | |
34,689
| | | | |
12,201
| |
35.2
|
%
|
|
Equity-based compensation expense
| | | |
2,418
| | | |
3,420
| | | | |
(1,002
|
)
|
(29.3
|
)%
|
|
Severance expense
| | | |
1,345
| | | |
-
| | | | |
1,345
| |
NM
| |
|
(Gain) loss on deferred compensation
| | | |
339
| | | |
100
| | | | |
239
| |
239.0
|
%
|
|
Acquisition-related costs
| | | |
3,242
| | | |
445
| | | | |
2,797
| |
NM
| |
|
(Gain) loss on disposal of assets
| | | |
462
| | | |
157
| | | | |
305
| |
194.3
|
%
|
|
Other (income) expense, net
| | |
|
322
|
| |
|
(183
|
)
|
| |
|
505
| |
NM
| |
|
Adjusted EBITDA (1) | | |
$
|
113,343
| | |
$
|
89,368
| | | |
$
|
23,975
| |
26.8
|
%
|
| | | | | | | | | | | | |
|
| Adjusted EBITDA margin | | | | 47.0 | % | | | 43.7 | % | | | | | | |
| | | | | | | | | | | | |
|
|
Less: Capital expenditures (1) | | |
|
40,513
|
| |
|
37,628
|
| | |
|
2,885
| |
7.7
|
%
|
|
Adjusted EBITDA less capital expenditures
| | |
$
|
72,830
|
| |
$
|
51,740
|
| | |
$
|
21,090
| |
40.8
|
%
|
|
| | | | | | | | | | | | | |
|
NM = Not meaningful.
| | | | | | | | | | | | | |
|
|
(1) Net income, Adjusted EBITDA and capital
expenditures for the second quarter of 2017 include two months of
NewWave operations. Net income and Adjusted EBITDA for the second
quarter of 2017 also include the favorable impact of a reduction
in expense, and capital expenditures include the unfavorable
impact in additional expenditures, of $5.1 million due to a change
in accounting estimate related to capitalized labor costs. Without
the contribution from NewWave operations, net income would have
been $26.5 million, Adjusted EBITDA growth would have been 14.2%,
and capital expenditures would have been $35.5 million. Excluding
both the NewWave impact and the change in estimate related to
capitalized labor, net income would have been $23.4 million,
Adjusted EBITDA growth would have been 8.4% and capital
expenditures would have been $30.4 million.
|
|
|
|
|
| Three Months Ended
June 30, | |
|
| | | |
| |
|
(dollars in thousands)
| | |
| 2017 |
|
| 2016 | | | $ Change | | % Change |
| | | | | | | | | | | | | | | | |
|
|
Net cash provided by operating activities
| | |
$
|
52,598
| | |
$
|
48,041
| | | |
$
|
4,557
| | |
9.5
|
%
|
|
Amortization of debt issuance costs
| | | |
(791
|
)
| | |
(405
|
)
| | | |
(386
|
)
| |
95.3
|
%
|
|
(Provision) benefit for deferred income taxes
| | | |
(7,360
|
)
| | |
660
| | | | |
(8,020
|
)
| |
NM
| |
|
Changes in operating assets and liabilities
| | | |
34,512
| | | |
16,603
| | | | |
17,909
| | |
107.9
|
%
|
|
Interest expense
| | | |
11,782
| | | |
7,549
| | | | |
4,233
| | |
56.1
|
%
|
|
Provision for income taxes
| | | |
17,967
| | | |
16,558
| | | | |
1,409
| | |
8.5
|
%
|
|
Severance expense
| | | |
1,345
| | | |
-
| | | | |
1,345
| | |
NM
| |
|
(Gain) loss on deferred compensation
| | | |
339
| | | |
100
| | | | |
239
| | |
239.0
|
%
|
|
Acquisition-related costs
| | | |
3,242
| | | |
445
| | | | |
2,797
| | |
NM
| |
|
Write-off of debt issuance costs
| | | |
(613
|
)
| | |
-
| | | | |
(613
|
)
| |
NM
| |
|
Other (income) expense, net
| | | |
322
| | | |
(183
|
)
| | | |
505
| | |
NM
| |
|
Capital expenditures
| | |
|
(40,513
|
)
| |
|
(37,628
|
)
| | |
|
(2,885
|
)
| |
7.7
|
%
|
|
Adjusted EBITDA less capital expenditures
| | |
$
|
72,830
| | |
$
|
51,740
| | | |
$
|
21,090
| | |
40.8
|
%
|
|
| | | | | | | | | | | | | | | | |
|
NM = Not meaningful.
|
|
|
|
|
|
| CABLE ONE, INC.
OPERATING STATISTICS
(Unaudited) |
| |
|
| |
|
| |
| | | | As of June 30, | | | Year-Over-Year Change |
| | | | 2017 |
| 2016 | | | % |
| | | Legacy CABO |
| NewWave |
| Consolidated | | Historical | | | Legacy CABO |
| Consolidated |
| | | | | | | | | | | | | |
|
| Homes Passed | | | | 1,681,279 | | | | 446,909 | | | | 2,128,188 | | | | 1,653,021 | | | | 1.7 | % | | 28.7 | % |
| | | | | | | | | | | | | | |
|
| Total Customers | | | | 655,309 | | | | 150,174 | | | | 805,483 | | | | 659,943 | | | | (0.7 | )% | | 22.1 | % |
|
Non-video
| | | |
356,812
| | | |
N/A
| | | |
N/A
| | | |
316,745
| | | |
12.6
|
%
| |
N/A
| |
|
Percent of total
| | | |
54.4
|
%
| | |
N/A
| | | |
N/A
| | | |
48.0
|
%
| | | | | |
| | | | | | | | | | | | | | |
|
| Residential Customers | | | | 601,883 | | | | 139,342 | | | | 741,225 | | | | 610,293 | | | | (1.4 | )% | | 21.5 | % |
| | | | | | | | | | | | | |
|
|
Data PSUs
| | | |
474,815
| | | |
110,234
| | | |
585,049
| | | |
465,603
| | | |
2.0
|
%
| |
25.7
|
%
|
|
Video PSUs
| | | |
284,695
| | | |
82,121
| | | |
366,816
| | | |
324,982
| | | |
(12.4
|
)%
| |
12.9
|
%
|
|
Voice PSUs
| | |
|
92,100
|
| |
|
22,419
|
| |
|
114,519
|
| |
|
103,806
|
| | |
(11.3
|
)%
| |
10.3
|
%
|
|
Total residential PSUs
| | | |
851,610
| | | |
214,774
| | | |
1,066,384
| | | |
894,391
| | | |
(4.8
|
)%
| |
19.2
|
%
|
| | | | | | | | | | | | | | |
|
| Business Customers | | | | 53,426 | | | | 10,832 | | | | 64,258 | | | | 49,650 | | | | 7.6 | % | | 29.4 | % |
| | | | | | | | | | | | | |
|
|
Data PSUs
| | | |
46,909
| | | |
8,379
| | | |
55,288
| | | |
42,714
| | | |
9.8
|
%
| |
29.4
|
%
|
|
Video PSUs
| | | |
13,295
| | | |
3,893
| | | |
17,188
| | | |
13,992
| | | |
(5.0
|
)%
| |
22.8
|
%
|
|
Voice PSUs
| | |
|
19,156
|
| |
|
4,611
|
| |
|
23,767
|
| |
|
17,134
|
| | |
11.8
|
%
| |
38.7
|
%
|
|
Total business PSUs
| | | |
79,360
| | | |
16,883
| | | |
96,243
| | | |
73,840
| | | |
7.5
|
%
| |
30.3
|
%
|
| | | | | | | | | | | | | | |
|
| Penetration | | | | | | | | | | | | | | |
|
Data
| | | |
31.0
|
%
| | |
26.5
|
%
| | |
30.1
|
%
| | |
30.8
|
%
| | |
0.2
|
%
| |
(0.7
|
)%
|
|
Video
| | | |
17.7
|
%
| | |
19.2
|
%
| | |
18.0
|
%
| | |
20.5
|
%
| | |
(2.8
|
)%
| |
(2.5
|
)%
|
|
Voice
| | | |
6.6
|
%
| | |
6.0
|
%
| | |
6.5
|
%
| | |
7.3
|
%
| | |
(0.7
|
)%
| |
(0.8
|
)%
|
| | | | | | | | | | | | | | |
|
| Share of Second Quarter Revenues | | | | | | | | | | | | | | |
|
Residential data
| | | |
44.2
|
%
| | |
33.4
|
%
| | |
42.8
|
%
| | |
42.1
|
%
| | |
2.1
|
%
| |
0.7
|
%
|
|
Business services
| | |
|
13.4
|
%
| |
|
14.4
|
%
| |
|
13.5
|
%
| |
|
12.0
|
%
| | |
1.4
|
%
| |
1.5
|
%
|
|
Total
| | | |
57.6
|
%
| | |
47.8
|
%
| | |
56.3
|
%
| | |
54.1
|
%
| | |
3.5
|
%
| |
2.2
|
%
|
| | | | | | | | | | | | | | |
|
| ARPUs – Second Quarter | | | | | | | | | | | | | | |
|
Residential data (1) | | |
$
|
64.70
| | |
$
|
48.50
| | |
$
|
62.52
| | |
$
|
61.49
| | | |
5.2
|
%
| |
1.7
|
%
|
|
Residential video (1) | | |
$
|
81.65
| | |
$
|
84.52
| | |
$
|
82.11
| | |
$
|
74.59
| | | |
9.5
|
%
| |
10.1
|
%
|
|
Residential voice (1) | | |
$
|
34.98
| | |
$
|
35.82
| | |
$
|
35.09
| | |
$
|
34.55
| | | |
1.2
|
%
| |
1.6
|
%
|
|
Business services (2) | | |
$
|
175.69
| | |
$
|
214.93
| | |
$
|
180.38
| | |
$
|
166.61
| | | |
5.4
|
%
| |
8.3
|
%
|
| | | | | | | | | | | | | | |
|
| Number of Associates | | | | 1,850 | | | | 552 | | | | 2,402 | | | | 1,932 | | | | (4.2 | )% | | 24.3 | % |
|
|
| | | | | | | | | | | | | | |
(1) Average monthly per unit values represent the
applicable residential service revenues divided by the
corresponding average of the number of PSUs at the beginning and
end of each period, except that for any new PSUs added as a result
of an acquisition occurring during the reporting period, the
associated average monthly per unit values represent the
applicable residential service revenues divided by the
corresponding weighted average of the number of PSUs during such
period.
|
|
|
(2) Average monthly per unit values represent business
services revenues divided by the average of the number of business
customer relationships at the beginning and end of each period,
except that for any new business customer relationships added as a
result of an acquisition occurring during the reporting period,
the associated average monthly per unit values represent business
services revenues divided by the weighted average of the number of
business customer relationships during such period.
|
|
|
|
N/A = Information not available.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170808005465/en/
Cable One, Inc.
Trish Niemann, 602-364-6372
Corporate
Communications Director
or
Kevin Coyle, 602-364-6505
Chief
Financial Officer
Source: Cable One, Inc.