PHOENIX--(BUSINESS WIRE)--
Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable ONE”) today
reported financial and operating results for the quarter ended September
30, 2017.
Third quarter 2017 highlights:
-
Net income was $31.5 million in the third quarter of 2017, an increase
of 51.0% year-over-year. Adjusted EBITDA(1) was $115.5
million, an increase of 32.5% year-over-year. Net profit margin was
12.4% and Adjusted EBITDA margin(1) was 45.5%.
-
Net income and Adjusted EBITDA results in the third quarter of 2017
include NewWave Communications (“NewWave”) operations and the
favorable impact of a reduction in expense of $6.2 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 increased 37.3% to $28.7 million and Adjusted EBITDA would have
increased 12.4% to $98.0 million. In addition, net profit margin would
have been 13.9% and Adjusted EBITDA margin would have been 47.5%.
-
Excluding both the NewWave operations and the change in estimate
related to capitalized labor, net income would have increased 18.8% to
$24.8 million and Adjusted EBITDA would have increased 5.3% to $91.8
million. Net profit margin would have been 12.0% and Adjusted EBITDA
margin would have been 44.5%.
-
Net cash provided by operating activities was $88.9 million, an
increase of 30.8% year-over-year. Adjusted EBITDA less capital
expenditures(1) was $63.1 million, an increase of 3.6%
compared to the third quarter of 2016.
-
Total revenues were $253.8 million, including a $47.5 million
contribution from NewWave operations, compared to $205.5 million in
the third quarter of 2016.
-
Residential data revenues increased $22.5 million, or 26.0%,
year-over-year to $109.3 million. Residential data revenues would have
increased $6.5 million, or 7.5%, excluding the $16.0 million
contribution from NewWave operations.
-
Business services revenues increased $9.8 million, or 38.4%,
year-over-year to $35.2 million. Business services revenues would have
increased $2.7 million, or 10.6%, excluding the $7.1 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.
“We are pleased with our progress on the integration of NewWave,” said
Julie Laulis, President and CEO of Cable ONE. “As we continue the
process of making NewWave more closely resemble Cable ONE in terms of
services and product offers, we believe establishing a unified
operational approach will benefit our customers and associates while
positioning us well for future growth.”
Third Quarter 2017 Financial Results Compared to Third Quarter 2016
Revenues increased $48.3 million, or 23.5%, due primarily to $47.5
million in revenues attributable to the NewWave operations. For the
third quarter of 2017 and 2016, residential data revenues comprised
43.1% and 42.2% of total revenues and business services revenues
comprised 13.9% and 12.4% of total revenues, respectively. Excluding the
$47.5 million contribution from NewWave in the third quarter of 2017,
revenues increased to $206.4 million from $205.5 million in the prior
year quarter. The third quarter of 2017 was negatively impacted by an
estimated $1.6 million loss in revenues from waived service offering
charges associated with Hurricane Harvey.
Operating expenses (excluding depreciation and amortization) were $91.9
million in the third quarter of 2017 and increased $16.3 million, or
21.5%, compared to the third quarter of 2016. Operating expenses as a
percentage of revenues were 36.2% for the third quarter of 2017 compared
to 36.8% for the year-ago quarter. Additional operating expenses
attributable to the NewWave operations were $24.2 million for the third
quarter of 2017. This increase was partially offset by a $4.8 million
decrease in labor costs associated with the aforementioned change in
accounting estimate for capitalized labor, a $0.9 million decrease in
backbone and internet connectivity fees, a $0.7 million decrease in
programming costs resulting from fewer video subscribers and a $0.7
million decrease in contract labor. Excluding the impact of the NewWave
operations, operating expenses would have been $67.7 million in the
third quarter of 2017, a decrease of $7.9 million, or 10.5%. Operating
expenses as a percentage of revenues, excluding the impact of the
NewWave operations, would have been 32.8% in the third quarter of 2017
compared to 36.8% in the third quarter of 2016.
Selling, general and administrative expenses increased $3.2 million, or
6.5%, to $52.0 million. Selling, general and administrative expenses as
a percentage of revenues were 20.5% and 23.7% for the third quarter of
2017 and 2016, respectively. Additional selling, general and
administrative expenses attributable to the NewWave operations were $5.9
million for the third quarter of 2017. Increases in deferred
compensation expenses of $1.1 million and insurance costs of $1.0
million were offset by decreases in acquisition-related costs of $2.0
million and marketing costs of $1.3 million, as well as a $1.4 million
decrease in labor costs associated with the aforementioned change in
accounting estimate for capitalized labor. Excluding the incremental
expenses associated with the NewWave operations, selling, general and
administrative expenses would have decreased $2.7 million, or 5.6%, to
$46.1 million. Selling, general and administrative expenses as a
percentage of revenues, excluding the impact of the NewWave operations,
would have been 22.3% in the third quarter of 2017 compared to 23.7% in
the third quarter of 2016.
Depreciation and amortization increased $9.4 million, or 25.8%,
including $12.2 million attributable to the NewWave operations. The
increase was due primarily to new assets placed in service since the
third 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 third
quarter of 2016. As a percentage of revenues, depreciation and
amortization expense was 18.0% for the third quarter of 2017 compared to
17.6% for the third quarter of 2016.
The Company recognized a $2.5 million loss on disposal of assets,
including $1.3 million associated with damage caused by Hurricane
Harvey, in the third quarter of 2017.
Interest expense increased $6.5 million, or 86.2%, due primarily to
additional debt incurred to finance the NewWave acquisition.
Net income increased $10.6 million, or 51.0%, to $31.5 million in the
third quarter of 2017 compared to $20.9 million in the prior year
quarter. Excluding the impact of the NewWave operations, net income
would have been $28.7 million. Without both the NewWave operations and
the change in accounting estimate for capitalized labor, net income
would have increased 18.8% to $24.8 million in the third quarter of
2017. Excluding the NewWave operations, the change in accounting
estimate for capitalized labor and the Hurricane Harvey impact, net
income would have increased 26.4% to $26.4 million.
Adjusted EBITDA was $115.5 million and $87.2 million for the third
quarter of 2017 and 2016, respectively. Adjusted EBITDA growth of 32.5%
in the third 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 $98.0
million and Adjusted EBITDA growth would have been 12.4% for the third
quarter of 2017. Excluding both the NewWave operations and the change in
estimate for capitalized labor, Adjusted EBITDA would have been $91.8
million and Adjusted EBITDA growth would have been 5.3%. Excluding the
NewWave operations, the change in estimate for capitalized labor, and
the Hurricane Harvey impact, Adjusted EBITDA would have been $93.5
million and Adjusted EBITDA growth would have been 7.3%.
Capital expenditures totaled $52.4 million and $26.3 million for the
third quarter of 2017 and 2016, respectively. Adjusted EBITDA less
capital expenditures for the third quarter of 2017 was $63.1 million, an
increase of $2.2 million, or 3.6%, from the prior year quarter.
Excluding the NewWave operations, capital expenditures would have been
$38.4 million. Excluding both the NewWave operations and the change in
estimate related to capitalized labor, capital expenditures would have
been $32.2 million.
Liquidity and Capital Resources
At September 30, 2017, the Company had $118.7 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 $747.2 million of outstanding term loan
borrowings in connection with the NewWave acquisition, at September 30,
2017 and $545.3 million at December 31, 2016. The Company also had
$196.9 million available for borrowing under its revolving credit
facility as of September 30, 2017.
Conference Call
Cable ONE will host a conference call with the financial community to
discuss results for the third quarter of the 2017 fiscal year on
Wednesday, November 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/10112665.
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 Thursday, November 9, 2017,
until Thursday, November 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 September 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 superior to, or
as a substitute for, net income, net profit margin or net cash provided
by operating activities reported in accordance with GAAP. 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
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,
provision for income taxes, changes in operating assets and liabilities
and other unusual operating expenses, as defined 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 measure used in 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 ability to take certain actions under the indenture
governing the notes. For the purpose of calculating compliance with the
leverage covenants in the Company’s debt instruments, 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 nearly 800,000 residential and business 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 acquisition
of NewWave;
-
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. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME |
| (Unaudited) |
|
| |
| |
| |
| |
| | Three Months Ended September 30, | | | | |
(in thousands, except per share and share
data) | |
| 2017 |
| |
| 2016 |
| | $ Change | | % Change |
|
|
Revenues
| | | | | | | | |
|
Residential data
| |
$
|
109,340
| | |
$
|
86,797
| | |
$
|
22,543
| | |
26.0
|
%
|
|
Residential video
| | |
88,601
| | | |
73,841
| | | |
14,760
| | |
20.0
|
%
|
|
Residential voice
| | |
11,265
| | | |
10,475
| | | |
790
| | |
7.5
|
%
|
|
Business services
| | |
35,168
| | | |
25,406
| | | |
9,762
| | |
38.4
|
%
|
|
Advertising sales
| | |
5,885
| | | |
6,460
| | | |
(575
|
)
| |
(8.9
|
)%
|
|
Other
| |
|
3,587
|
| |
|
2,557
|
| |
|
1,030
|
| |
40.3
|
%
|
|
Total Revenues
| | |
253,846
| | | |
205,536
| | | |
48,310
| | |
23.5
|
%
|
|
Costs and Expenses
| | | | | | | | |
|
Operating (excluding depreciation and
| | | | | | | | | | | | | | | |
|
amortization)
| | |
91,894
| | | |
75,631
| | | |
16,263
| | |
21.5
|
%
|
|
Selling, general and administrative
| | |
51,968
| | | |
48,807
| | | |
3,161
| | |
6.5
|
%
|
|
Depreciation and amortization
| | |
45,580
| | | |
36,218
| | | |
9,362
| | |
25.8
|
%
|
|
(Gain) loss on disposal of assets
| |
|
2,506
|
| |
|
1,060
|
| |
|
1,446
|
| |
136.4
|
%
|
|
Total operating costs and expenses
| |
|
191,948
|
| |
|
161,716
|
| |
|
30,232
|
| |
18.7
|
%
|
|
Income from operations
| | |
61,898
| | | |
43,820
| | | |
18,078
| | |
41.3
|
%
|
|
Interest expense
| | |
(14,019
|
)
| | |
(7,529
|
)
| | |
(6,490
|
)
| |
86.2
|
%
|
|
Other income (expense), net
| |
|
278
|
| |
|
4,329
|
| |
|
(4,051
|
)
| |
(93.6
|
)%
|
|
Income before income taxes
| | |
48,157
| | | |
40,620
| | | |
7,537
| | |
18.6
|
%
|
|
Provision for income taxes
| |
|
16,643
|
| |
|
19,746
|
| |
|
(3,103
|
)
| |
(15.7
|
)%
|
|
Net income
| |
$
|
31,514
|
| |
$
|
20,874
|
| |
$
|
10,640
|
| |
51.0
|
%
|
| | | | | | | |
|
|
Other comprehensive gain (loss), net of tax
| |
|
1
|
| |
|
28
|
| |
|
(27
|
)
| |
(96.4
|
)%
|
|
Comprehensive income
| |
$
|
31,515
|
| |
$
|
20,902
|
| |
$
|
10,613
|
| |
50.8
|
%
|
| | | | | | | |
|
|
Net income per common share:
| | | | | | | | |
|
Basic
| |
$
|
5.55
|
| |
$
|
3.65
|
| |
$
|
1.90
|
| |
52.1
|
%
|
|
Diluted
| |
$
|
5.48
|
| |
$
|
3.63
|
| |
$
|
1.85
|
| |
51.0
|
%
|
|
Weighted average common shares outstanding:
| | | | | | | | |
|
Basic
| | |
5,680,600
| | | |
5,720,257
| | | | | |
|
Diluted
| | |
5,753,910
| | | |
5,755,161
| | | | | |
| | | | | | | | | | | |
|
| CABLE ONE, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
| |
| |
| | (Unaudited) | | |
(in thousands, except par value and share
data) | | September 30, 2017 | | December 31, 2016 |
| Assets | | | | |
|
Current Assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
118,701
| | |
$
|
138,040
| |
|
Accounts receivable, net
| | |
54,085
| | | |
32,526
| |
|
Income tax receivable
| | |
18,127
| | | |
4,547
| |
|
Prepaid assets
| |
|
12,053
|
| |
|
10,824
|
|
|
Total Current Assets
| | |
202,966
| | | |
185,937
| |
|
Property, plant and equipment, net
| | |
810,393
| | | |
619,621
| |
|
Intangibles, net
| | |
968,557
| | | |
497,480
| |
| Goodwill | | |
177,809
| | | |
84,928
| |
|
Other assets
| |
|
5,508
|
| |
|
9,305
|
|
|
Total Assets
| |
$
|
2,165,233
|
| |
$
|
1,397,271
|
|
| | | |
|
| Liabilities and Stockholders' Equity | | | | |
|
Current Liabilities:
| | | | |
|
Accounts payable and accrued liabilities
| |
$
|
101,310
| | |
$
|
82,703
| |
|
Deferred revenue
| | |
37,158
| | | |
22,190
| |
|
Long-term debt - current portion
| |
|
12,813
|
| |
|
6,250
|
|
|
Total Current Liabilities
| | |
151,281
| | | |
111,143
| |
|
Long-term debt
| | |
1,164,070
| | | |
530,886
| |
|
Deferred income taxes
| | |
298,324
| | | |
276,297
| |
|
Accrued compensation and other liabilities
| |
|
25,934
|
| |
|
24,434
|
|
|
Total Liabilities
| |
|
1,639,609
|
| |
|
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
| | |
60
| | | |
59
| |
|
shares issued; and 5,728,358 and 5,708,223 shares outstanding
| | |
|
as of September 30, 2017 and December 31, 2016, respectively)
| | |
|
Additional paid-in capital
| | |
25,590
| | | |
17,669
| |
|
Retained earnings
| | |
577,892
| | | |
511,776
| |
|
Accumulated other comprehensive loss
| | |
(441
|
)
| | |
(446
|
)
|
Treasury stock, at cost (159,541 and 179,676 shares held as of
September
30, 2017 and December 31, 2016, respectively)
| |
|
(77,477
|
)
| |
|
(74,547
|
)
|
|
Total Stockholders' Equity
| |
|
525,624
|
| |
|
454,511
|
|
|
Total Liabilities and Stockholders' Equity
| |
$
|
2,165,233
|
| |
$
|
1,397,271
|
|
| | | | | | | |
|
| CABLE ONE, INC. |
| RECONCILIATIONS OF NON-GAAP MEASURES |
| (Unaudited) |
|
| |
|
| |
| |
| |
| |
| | | | | Three Months Ended September 30, | | | | |
(dollars in thousands) | | | 2017 | | 2016 | | $ Change | | % Change |
|
Net income (1) | | | $ 31,514 | | $ 20,874 | | $ 10,640 | |
51.0%
|
| | | | | | | | | | |
|
| Net profit margin | | | 12.4% | | 10.2% | | | | |
| | | | | | | | | | |
|
|
Plus:
| |
Interest expense
| | |
14,019
| |
7,529
| |
6,490
| |
86.2%
|
| |
Provision for income taxes
| | |
16,643
| |
19,746
| |
(3,103)
| |
(15.7)%
|
| |
Depreciation and amortization
| | |
45,580
| |
36,218
| |
9,362
| |
25.8%
|
| |
Equity-based compensation expense
| | |
3,076
| |
3,187
| |
(111)
| |
(3.5)%
|
| |
Severance expense
| | |
350
| |
-
| |
350
| |
NM
|
| |
(Gain) loss on deferred compensation
| | |
1,485
| |
358
| |
1,127
| |
NM
|
| |
Acquisition-related costs
| | |
557
| |
2,512
| |
(1,955)
| |
(77.8)%
|
| |
(Gain) loss on disposal of assets
| | |
2,506
| |
1,060
| |
1,446
| |
136.4%
|
| |
Other (income) expense, net
| | |
(278)
| |
(4,329)
| |
4,051
| |
(93.6)%
|
|
Adjusted EBITDA (1) | | | $ 115,452 | | $ 87,155 | | $ 28,297 | |
32.5%
|
| | | | | | | | | | |
|
| Adjusted EBITDA margin | | | 45.5% | | 42.4% | | | | |
| | | | | | | | | | |
|
|
Less:
| |
Capital expenditures (1) | | |
52,400
| |
26,320
| |
26,080
| |
99.1%
|
|
Adjusted EBITDA less capital expenditures
| | | $ 63,052 | | $ 60,835 | | $ 2,217 | |
3.6%
|
| | | | | | | | | |
NM = Not meaningful.
| | | | | | | | | |
| | | | | | | | |
|
(1) Net income, Adjusted EBITDA and capital expenditures
results for the third quarter of 2017 include NewWave operations. Net
income and Adjusted EBITDA for the third quarter of 2017 include the
favorable impact of a reduction in expense, and capital expenditures
include the unfavorable impact in additional expenditures, of $6.2
million due to a change in accounting estimate related to capitalized
labor costs. Without the contribution from NewWave operations, net
income would have increased 37.3% to $28.7 million, Adjusted EBITDA
would have increased 12.4% to $98.0 million and capital expenditures
would have been $38.4 million. Excluding both the NewWave operations and
the change in estimate related to capitalized labor, net income would
have increased 18.8% to $24.8 million, Adjusted EBITDA would have
increased 5.3% to $91.8 million and capital expenditures would have been
$32.2 million.
|
| |
|
| Three Months Ended September 30, |
| |
| |
(dollars in thousands) | | |
| 2017 |
|
|
| 2016 |
| | $Change | | % Change |
|
|
Net cash provided by operating activities
| | |
$
|
88,929
| | |
$
|
67,991
| | |
$
|
20,938
| | |
30.8
|
%
|
|
Capital expenditures
| | | |
(52,400
|
)
| | |
(26,320
|
)
| | |
(26,080
|
)
| |
99.1
|
%
|
|
Interest expense
| | | |
14,019
| | | |
7,529
| | | |
6,490
| | |
86.2
|
%
|
|
Amortization of debt issuance costs
| | | |
(992
|
)
| | |
(424
|
)
| | |
(568
|
)
| |
134.0
|
%
|
|
Provision for income taxes
| | | |
16,643
| | | |
19,746
| | | |
(3,103
|
)
| |
(15.7
|
)%
|
|
Changes in operating assets and liabilities
| | | |
(1,786
|
)
| | |
(6,500
|
)
| | |
4,714
| | |
(72.5
|
)%
|
|
(Provision) benefit for deferred income taxes
| | | |
(3,475
|
)
| | |
(3,893
|
)
| | |
418
| | |
(10.7
|
)%
|
|
(Gain) loss on deferred compensation
| | | |
1,485
| | | |
358
| | | |
1,127
| | |
NM
| |
|
Acquisition-related costs
| | | |
557
| | | |
2,512
| | | |
(1,955
|
)
| |
(77.8
|
)%
|
|
Severance expense
| | | |
350
| | | |
-
| | | |
350
| | |
NM
| |
|
Gain on sale of cable system
| | | |
-
| | | |
4,165
| | | |
(4,165
|
)
| |
(100.0
|
)%
|
|
Other (income) expense, net
| | |
|
(278
|
)
| |
|
(4,329
|
)
| |
|
4,051
|
| |
(93.6
|
)%
|
|
Adjusted EBITDA less capital expenditures
| | |
$
|
63,052
|
| |
$
|
60,835
|
| |
$
|
2,217
|
| |
3.6
|
%
|
|
| | | | | | | | | |
NM = Not meaningful.
| | | | | | | | | |
| | | | | | | | |
|
| CABLE ONE, INC. |
| OPERATING STATISTICS |
| (Unaudited) |
|
|
| |
| |
| |
| |
| |
| |
| | | | As of September 30, | | Year-Over-Year |
| | | | 2017 |
|
|
| 2016 |
| | % Change |
| | | | Legacy CABO | | NewWave | | Consolidated | | Historical | | Legacy CABO | | Consolidated |
| Homes Passed | | | 1,687,848 | | | | 448,988 | | | | 2,136,836 | | | | 1,656,860 | | | 1.9 | % | | 29.0 | % |
| | | | | | | | | | | | | |
|
| Total Customers | | | 647,314 | | | | 148,796 | | | | 796,110 | | | | 658,088 | | | (1.6 | )% | | 21.0 | % |
|
Non-video
| | |
359,649
| | | |
N/A
| | | |
N/A
| | | |
324,352
| | |
10.9
|
%
| |
N/A
| |
|
Percent of total
| | |
55.6
|
%
| | |
N/A
| | | |
N/A
| | | |
49.3
|
%
| | | | |
| | | | | | | | | | | | | |
|
| Residential Customers | | | 593,388 | | | | 137,711 | | | | 731,099 | | | | 607,399 | | | (2.3 | )% | | 20.4 | % |
| | | | | | | | | | | | | |
|
|
Data PSUs
| | |
471,537
| | | |
109,973
| | | |
581,510
| | | |
466,668
| | |
1.0
|
%
| |
24.6
|
%
|
|
Video PSUs
| | |
274,258
| | | |
79,602
| | | |
353,860
| | | |
315,589
| | |
(13.1
|
)%
| |
12.1
|
%
|
|
Voice PSUs
| |
|
89,259
|
| |
|
22,036
|
| |
|
111,295
|
| |
|
100,510
|
| |
(11.2
|
)%
| |
10.7
|
%
|
|
Total residential PSUs
| | |
835,054
| | | |
211,611
| | | |
1,046,665
| | | |
882,767
| | |
(5.4
|
)%
| |
18.6
|
%
|
| | | | | | | | | | | | | |
|
| Business Customers | | | 53,926 | | | | 11,085 | | | | 65,011 | | | | 50,689 | | | 6.4 | % | | 28.3 | % |
| | | | | | | | | | | | | |
|
|
Data PSUs
| | |
47,525
| | | |
8,618
| | | |
56,143
| | | |
43,905
| | |
8.2
|
%
| |
27.9
|
%
|
|
Video PSUs
| | |
13,002
| | | |
3,851
| | | |
16,853
| | | |
13,797
| | |
(5.8
|
)%
| |
22.1
|
%
|
|
Voice PSUs
| |
|
19,440
|
| |
|
4,780
|
| |
|
24,220
|
| |
|
17,695
|
| |
9.9
|
%
| |
36.9
|
%
|
|
Total business PSUs
| | |
79,967
| | | |
17,249
| | | |
97,216
| | | |
75,397
| | |
6.1
|
%
| |
28.9
|
%
|
| | | | | | | | | | | | | |
|
| Penetration | | | | | | | | | | | | |
|
Data
| | |
30.8
|
%
| | |
26.4
|
%
| | |
29.8
|
%
| | |
30.8
|
%
| |
0.0
|
%
| |
(1.0
|
)%
|
|
Video
| | |
17.0
|
%
| | |
18.6
|
%
| | |
17.3
|
%
| | |
19.9
|
%
| |
(2.9
|
)%
| |
(2.6
|
)%
|
|
Voice
| | |
6.4
|
%
| | |
6.0
|
%
| | |
6.3
|
%
| | |
7.1
|
%
| |
(0.7
|
)%
| |
(0.8
|
)%
|
| | | | | | | | | | | | | |
|
| Share of Third Quarter Revenues | | | | | | | | | | | | |
|
Residential data
| | |
45.2
|
%
| | |
33.6
|
%
| | |
43.1
|
%
| | |
42.2
|
%
| |
3.0
|
%
| |
0.9
|
%
|
|
Business services
| |
|
13.6
|
%
| |
|
14.7
|
%
| |
|
13.9
|
%
| |
|
12.4
|
%
| |
1.2
|
%
| |
1.5
|
%
|
|
Total
| | |
58.8
|
%
| | |
48.3
|
%
| | |
57.0
|
%
| | |
54.6
|
%
| |
4.2
|
%
| |
2.4
|
%
|
| | | | | | | | | | | | | |
|
| ARPUs - Third Quarter | | | | | | | | | | | | |
|
Residential data (1) | |
$
|
65.74
| | |
$
|
48.51
| | |
$
|
62.49
| | |
$
|
62.07
| | |
5.9
|
%
| |
0.7
|
%
|
|
Residential video (1) | |
$
|
81.41
| | |
$
|
83.85
| | |
$
|
81.96
| | |
$
|
76.85
| | |
5.9
|
%
| |
6.7
|
%
|
|
Residential voice (1) | |
$
|
32.75
| | |
$
|
35.35
| | |
$
|
33.26
| | |
$
|
34.18
| | |
(4.2
|
)%
| |
(2.7
|
)%
|
|
Business services (2) | |
$
|
174.52
| | |
$
|
214.90
| | |
$
|
181.37
| | |
$
|
168.80
| | |
3.4
|
%
| |
7.4
|
%
|
| | | | | | | | | | | | | |
|
| Number of Associates | | | 1,802 | | | | 510 | | | | 2,312 | | | | 1,907 | | | (5.5 | )% | | 21.2 | % |
| | | | | | | | | | | |
|
(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.
(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.
N/A Information not available.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171108005228/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.