PHOENIX--(BUSINESS WIRE)--
Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable ONE”) today
reported financial and operating results for the quarter ended March 31,
2018.
First quarter 2018 highlights:
-
Net income was $40.7 million in the first quarter of 2018, an increase
of 26.6% year-over-year. Adjusted EBITDA(1) was $123.2
million, an increase of 26.7% year-over-year. Net profit margin was
15.3% and Adjusted EBITDA margin(1) was 46.3%.
-
Net income and Adjusted EBITDA results for the first quarter of 2018
include NewWave Communications (“NewWave”) operations, which the
Company acquired on May 1, 2017. Without the contribution from the
NewWave operations, net income would have increased 17.7%
year-over-year to $37.8 million and Adjusted EBITDA would have
increased 7.4% to $104.4 million year-over-year. In addition, net
profit margin would have been 17.4% and Adjusted EBITDA margin would
have been 48.1%.
-
Net cash provided by operating activities was $94.7 million, an
increase of 21.0% year-over-year. Adjusted EBITDA less capital
expenditures(1) was $82.1 million, an increase of 34.0%
compared to the first quarter of 2017.
-
Total revenues were $265.8 million, including a $48.6 million
contribution from NewWave operations, compared to $207.4 million in
the first quarter of 2017.
-
Residential data revenues increased 31.4% and business services
revenues increased 39.8% year-over-year. Excluding the contribution
from NewWave operations, residential data revenues increased 10.7% and
business services revenues increased 12.3% compared to the first
quarter of 2017.
| (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 also
reconciled to net cash provided by operating activities. Refer to
the “Reconciliations of Non-GAAP Measures” tables within this press
release.
|
| |
|
First Quarter 2018 Financial Results Compared to First Quarter 2017
Revenues increased $58.3 million, or 28.1%, to $265.8 million for the
first quarter of 2018 due primarily to $48.6 million in revenues
attributable to the NewWave operations. For the first quarter of 2018
and 2017, residential data revenues comprised 44.6% and 43.5% of total
revenues and business services revenues comprised 14.2% and 13.0% of
total revenues, respectively. Excluding the $48.6 million contribution
from NewWave operations in the first quarter of 2018, revenues increased
to $217.1 million from $207.4 million in the prior year quarter.
Operating expenses (excluding depreciation and amortization) were $94.7
million in the first quarter of 2018 and increased $25.7 million, or
37.1%, compared to the first quarter of 2017. Operating expenses as a
percentage of revenues were 35.6% for the first quarter of 2018 compared
to 33.3% for the year-ago quarter. Additional operating expenses
attributable to the NewWave operations were $24.3 million for the first
quarter of 2018. The remaining increase was due primarily to higher
repairs and maintenance costs of $0.8 million, group insurance costs of
$0.3 million and contract labor costs of $0.3 million. Excluding the
impact of the NewWave operations, operating expenses would have been
$70.4 million in the first quarter of 2018, an increase of $1.4 million,
or 2.0%, compared to the first quarter of 2017. Operating expenses as a
percentage of revenues, excluding the impact of the NewWave operations,
would have been 32.4% in the first quarter of 2018 compared to 33.3% in
the first quarter of 2017.
Selling, general and administrative expenses were $51.0 million for the
first quarter of 2018 and increased $4.6 million, or 9.8%, compared to
the first quarter of 2017. Selling, general and administrative expenses
as a percentage of revenues were 19.2% and 22.4% for the first quarter
of 2018 and 2017, respectively. Additional selling, general and
administrative expenses attributable to the NewWave operations were $6.4
million for the first quarter of 2018. Excluding the incremental
expenses associated with the NewWave operations, selling, general and
administrative expenses would have decreased $1.9 million, or 4.0%, to
$44.5 million due to $1.5 million of acquisition-related costs and $1.3
million of severance costs incurred in the first quarter of 2017 that
did not recur in 2018, partially offset by a $0.9 million increase in
group insurance costs. Selling, general and administrative expenses as a
percentage of revenues, excluding the impact of the NewWave operations,
would have been 20.5% in the first quarter of 2018 compared to 22.4% in
the first quarter of 2017.
Depreciation and amortization expense was $48.8 million for the first
quarter of 2018 and increased $9.2 million, or 23.4%, compared to the
first quarter of 2017. The increase was due primarily to new assets
placed in service since the first quarter of 2017, including property,
plant and equipment and finite-lived intangible assets acquired as part
of the NewWave acquisition, partially offset by assets that became fully
depreciated since the first quarter of 2017. Depreciation and
amortization expense related to the NewWave operations was $12.5 million
for the first quarter of 2018. As a percentage of revenues, depreciation
and amortization expense was 18.4% for the first quarter of 2018
compared to 19.1% for the first quarter of 2017.
We recognized a $6.6 million net loss on disposal of assets during the
first quarter of 2018. In the first quarter of 2017, we recognized a
$6.1 million net gain on disposal of assets, which primarily related to
the sale of a non-operating property.
Interest expense increased $7.1 million, or 93.6%, to $14.7 million due
primarily to additional outstanding debt that was incurred in the second
quarter of 2017 to finance the NewWave acquisition.
Income tax provision decreased $9.2 million, or 48.3%, to $9.9 million
in the first quarter of 2018, primarily as a result of the 2017 Federal
tax reform legislation.
Net income increased $8.5 million, or 26.6%, to $40.7 million in the
first quarter of 2018 compared to $32.1 million in the prior year
quarter. Excluding the NewWave operations, net income would have been
$37.8 million for the first quarter of 2018.
Adjusted EBITDA was $123.2 million and $97.2 million for the first
quarter of 2018 and 2017, respectively. The year-over-year Adjusted
EBITDA growth of 26.7% includes the positive impact of the NewWave
operations. Without the contribution from NewWave operations, Adjusted
EBITDA would have been $104.4 million and year-over-year Adjusted EBITDA
growth would have been 7.4% for the first quarter of 2018.
Capital expenditures totaled $41.0 million and $35.9 million for the
first quarter of 2018 and 2017, respectively. Adjusted EBITDA less
capital expenditures for the first quarter of 2018 was $82.1 million, an
increase of $20.8 million, or 34.0%, from the prior year quarter.
Excluding the NewWave operations, capital expenditures would have been
$34.3 million for the first quarter of 2018.
Liquidity and Capital Resources
At March 31, 2018, the Company had $185.5 million of cash and cash
equivalents on hand, compared to $161.8 million at December 31, 2017.
The Company’s debt balance was $1.2 billion at both March 31, 2018 and
December 31, 2017. The Company also had $196.9 million available for
borrowing under its revolving credit facility as of March 31, 2018.
Conference Call
Cable ONE will host a conference call with the financial community to
discuss results for the first quarter of 2018 on Wednesday, May 9, 2018,
at 11 a.m. Eastern Time (ET).
Shareholders, analysts and other interested parties may register for the
conference in advance at http://dpregister.com/10119518.
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, May 9, 2018,
until Wednesday, May 23, 2018, 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 March 31, 2018, 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, income
tax provision, depreciation and amortization, equity-based compensation,
severance expense, (gain) loss on deferred compensation,
acquisition-related costs, (gain) loss on disposal of assets, billing
system conversion costs, other (income) expense 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 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, changes in operating assets and liabilities, deferred
income taxes 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 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. 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 (NYSE: CABO) is among the 10 largest cable companies in the
United States and a leading broadband communications provider. Serving
residential and business customers in 21 states, Cable ONE provides
consumers with a wide array of communications and entertainment
services, including high-speed internet and advanced Wi-Fi solutions,
cable television and phone service. Cable ONE Business provides scalable
and cost-effective products for businesses ranging in size from small to
mid-market, in addition to enterprise, wholesale and carrier customers.
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 “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. 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:
-
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 hardware, software and operational support from
vendors;
-
the effects of any new significant acquisitions by us;
-
adverse economic conditions;
-
the integrity and security of our network and information systems;
-
the impact of possible security breaches and other disruptions,
including cyber-attacks;
-
our failure to obtain necessary intellectual and proprietary rights to
operate our business and the risk of intellectual property claims and
litigation against us;
-
our ability to retain key employees;
-
changing and additional regulation of our data, video and voice
services, including legislative and regulatory efforts to impose new
legal requirements on our data services;
-
our ability to renew cable system franchises;
-
increases in pole attachment costs;
-
changes in local government franchising authority and broadcast
carriage regulations;
-
the potential adverse effect of our indebtedness on our business,
financial condition or results of operations and cash flows;
-
the possibility that interest rates will rise, causing our obligations
to service our variable rate indebtedness to increase significantly;
-
our ability to incur future indebtedness;
-
fluctuations in our stock price;
-
our ability to continue to pay dividends;
-
dilution from equity awards and potential stock issuances in
connection with acquisitions;
-
provisions in our charter, by-laws and Delaware law that could
discourage takeovers;
-
changes in our estimates of the impact of the 2017 Federal tax reform
legislation;
-
changes in GAAP or other applicable accounting policies; and
-
the other risks and uncertainties detailed in the section titled “Risk
Factors” in our latest Annual Report on Form 10-K as filed with
the SEC.
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,
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 March 31, | | | | | | |
|
(dollars in thousands, except per share and share data)
| | | 2018 | | 2017 | | | $ Change | | | % Change |
|
Revenues
| | | | | | | | | | | |
|
Residential data
| | |
$
|
118,487
| | |
$
|
90,201
| | | |
$
|
28,286
| | | |
31.4
|
%
|
|
Residential video
| | | |
88,757
| | | |
72,454
| | | | |
16,303
| | | |
22.5
|
%
|
|
Residential voice
| | | |
10,671
| | | |
9,867
| | | | |
804
| | | |
8.1
|
%
|
|
Business services
| | | |
37,691
| | | |
26,968
| | | | |
10,723
| | | |
39.8
|
%
|
|
Advertising sales
| | | |
5,241
| | | |
5,622
| | | | |
(381
|
)
| | |
(6.8
|
)%
|
|
Other
| | |
|
4,914
|
| |
|
2,322
|
| | |
|
2,592
|
| | |
111.6
|
%
|
|
Total Revenues
| | | |
265,761
| | | |
207,434
| | | | |
58,327
| | | |
28.1
|
%
|
|
Costs and Expenses
| | | | | | | | | | | |
|
Operating (excluding depreciation and amortization)
| | | |
94,739
| | | |
69,083
| | | | |
25,656
| | | |
37.1
|
%
|
|
Selling, general and administrative
| | | |
50,949
| | | |
46,385
| | | | |
4,564
| | | |
9.8
|
%
|
|
Depreciation and amortization
| | | |
48,778
| | | |
39,536
| | | | |
9,242
| | | |
23.4
|
%
|
|
(Gain) loss on disposal of assets, net
| | |
|
6,634
|
| |
|
(6,146
|
)
| | |
|
12,780
|
| | |
(207.9
|
)%
|
|
Total costs and expenses
| | |
|
201,100
|
| |
|
148,858
|
| | |
|
52,242
|
| | |
35.1
|
%
|
|
Income from operations
| | | |
64,661
| | | |
58,576
| | | | |
6,085
| | | |
10.4
|
%
|
|
Interest expense
| | | |
(14,723
|
)
| | |
(7,606
|
)
| | | |
(7,117
|
)
| | |
93.6
|
%
|
|
Other income (expense), net
| | |
|
617
|
| |
|
287
|
| | |
|
330
|
| | |
115.0
|
%
|
|
Income before income taxes
| | | |
50,555
| | | |
51,257
| | | | |
(702
|
)
| | |
(1.4
|
)%
|
|
Income tax provision
| | |
|
9,902
|
| |
|
19,144
|
| | |
|
(9,242
|
)
| | |
(48.3
|
)%
|
|
Net income
| | |
$
|
40,653
|
| |
$
|
32,113
|
| | |
$
|
8,540
|
| | |
26.6
|
%
|
| | | | | | | | | | | |
|
|
Net income per common share:
| | | | | | | | | | | |
|
Basic
| | |
$
|
7.13
|
| |
$
|
5.66
|
| | |
$
|
1.47
|
| | |
26.0
|
%
|
|
Diluted
| | |
$
|
7.08
|
| |
$
|
5.60
|
| | |
$
|
1.48
|
| | |
26.4
|
%
|
|
Weighted average common shares outstanding:
| | | | | | | | | | | |
|
Basic
| | | |
5,702,539
| | | |
5,671,838
| | | | | | | |
|
Diluted
| | | |
5,742,648
| | | |
5,730,901
| | | | | | | |
| | | | | | | | | | | |
|
|
Other comprehensive gain (loss), net of tax
| | |
$
|
1
|
| |
$
|
2
|
| | |
$
|
(1
|
)
| | |
(50.0
|
)%
|
|
Comprehensive income
| | |
$
|
40,654
|
| |
$
|
32,115
|
| | |
$
|
8,539
|
| | |
26.6
|
%
|
| | | | | | | | | | | |
|
|
Dividends declared per common share
| | |
$
|
1.75
| | |
$
|
1.50
| | | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| CABLE ONE, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
|
| |
|
| |
|
| |
|
(in thousands, except par value and share data)
| | | March 31, 2018 | | | December 31, 2017 |
| Assets | | | | | | |
|
Current Assets:
| | | | | | |
|
Cash and cash equivalents
| | |
$
|
185,493
| | | |
$
|
161,752
| |
|
Accounts receivable, net
| | | |
25,477
| | | | |
29,930
| |
|
Income taxes receivable
| | | |
16,782
| | | | |
21,331
| |
|
Prepaid and other current assets
| | |
|
19,474
|
| | |
|
10,898
|
|
|
Total Current Assets
| | | |
247,226
| | | | |
223,911
| |
|
Property, plant and equipment, net
| | | |
820,009
| | | | |
831,892
| |
|
Intangibles, net
| | | |
962,933
| | | | |
965,745
| |
| Goodwill | | | |
172,129
| | | | |
172,129
| |
|
Other assets
| | |
|
11,489
|
| | |
|
10,955
|
|
|
Total Assets
| | |
$
|
2,213,786
|
| | |
$
|
2,204,632
|
|
| | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | |
|
Current Liabilities:
| | | | | | |
|
Accounts payable and accrued liabilities
| | |
$
|
98,379
| | | |
$
|
117,855
| |
|
Deferred revenue
| | | |
17,780
| | | | |
15,008
| |
|
Current portion of long-term debt
| | |
|
15,938
|
| | |
|
14,375
|
|
|
Total Current Liabilities
| | | |
132,097
| | | | |
147,238
| |
|
Long-term debt
| | | |
1,157,273
| | | | |
1,160,682
| |
|
Deferred income taxes
| | | |
212,864
| | | | |
207,154
| |
|
Other liabilities
| | |
|
11,642
|
| | |
|
13,111
|
|
|
Total Liabilities
| | |
|
1,513,876
|
| | |
|
1,528,185
|
|
| | | | | | |
|
|
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 5,732,441 and 5,731,442 shares
outstanding as of March 31, 2018 and December 31, 2017,
respectively)
| | | |
59
| | | | |
59
| |
|
Additional paid-in capital
| | | |
30,750
| | | | |
28,412
| |
|
Retained earnings
| | | |
759,004
| | | | |
728,386
| |
|
Accumulated other comprehensive loss
| | | |
(351
|
)
| | | |
(352
|
)
|
| Treasury stock, at cost (155,458 and 156,457 shares held as of
March 31, 2018 and December 31, 2017, respectively)
| | |
|
(89,552
|
)
| | |
|
(80,058
|
)
|
|
Total Stockholders' Equity
| | |
|
699,910
|
| | |
|
676,447
|
|
|
Total Liabilities and Stockholders' Equity
| | |
$
|
2,213,786
|
| | |
$
|
2,204,632
|
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
|
| CABLE ONE, INC. |
| RECONCILIATIONS OF NON-GAAP MEASURES |
| (Unaudited) |
| | |
|
| |
| |
|
| |
|
| |
| | | | | Three Months Ended March 31, | | | | | | |
|
(dollars in thousands)
| | | 2018 | | 2017 | | | $ Change | | | % Change |
|
Net income(1) | | |
$
|
40,653
| | |
$
|
32,113
| | | |
$
|
8,540
| | | |
26.6
|
%
|
| | | | | | | | | | | | |
|
| Net profit margin | | | | 15.3 | % | | | 15.5 | % | | | | | | |
| | | | | | | | | | | | |
|
|
Plus:
|
Interest expense
| | | |
14,723
| | | |
7,606
| | | | |
7,117
| | | |
93.6
|
%
|
| |
Income tax provision
| | | |
9,902
| | | |
19,144
| | | | |
(9,242
|
)
| | |
(48.3
|
)%
|
| |
Depreciation and amortization
| | | |
48,778
| | | |
39,536
| | | | |
9,242
| | | |
23.4
|
%
|
| |
Equity-based compensation
| | | |
2,338
| | | |
2,427
| | | | |
(89
|
)
| | |
(3.7
|
)%
|
| |
Severance expense
| | | |
-
| | | |
1,254
| | | | |
(1,254
|
)
| | |
(100.0
|
)%
|
| |
(Gain) loss on deferred compensation
| | | |
(84
|
)
| | |
90
| | | | |
(174
|
)
| | |
(193.3
|
)%
|
| |
Acquisition-related costs
| | | |
-
| | | |
1,482
| | | | |
(1,482
|
)
| | |
(100.0
|
)%
|
| |
(Gain) loss on disposal of assets, net
| | | |
6,634
| | | |
(6,146
|
)
| | | |
12,780
| | | |
(207.9
|
)%
|
| |
Billing system conversion costs
| | | |
840
| | | |
-
| | | | |
840
| | | |
NM
| |
| |
Other (income) expense, net
| | |
|
(617
|
)
| |
|
(287
|
)
| | |
|
(330
|
)
| | |
115.0
|
%
|
|
Adjusted EBITDA(1) | | |
$
|
123,167
| | |
$
|
97,219
| | | |
$
|
25,948
| | | |
26.7
|
%
|
| | | | | | | | | | | | |
|
| Adjusted EBITDA margin | | | | 46.3 | % | | | 46.9 | % | | | | | | |
| | | | | | | | | | | | |
|
|
Less:
|
Capital expenditures(1) | | |
|
41,019
|
| |
|
35,917
|
| | |
|
5,102
|
| | |
14.2
|
%
|
|
Adjusted EBITDA less capital expenditures
| | |
$
|
82,148
|
| |
$
|
61,302
|
| | |
$
|
20,846
|
| | |
34.0
|
%
|
|
| | | | | | | | | | | | |
|
NM = Not meaningful.
| | | | | | | | | | | |
| (1) |
|
Net income, Adjusted EBITDA and capital expenditures results for the
first quarter of 2018 include NewWave operations. Without the
contribution from NewWave operations, net income for the first
quarter of 2018 would have increased 17.7% to $37.8 million,
Adjusted EBITDA would have increased 7.4% to $104.4 million and
capital expenditures would have been $34.3 million.
|
| | | | | | | | | | | | |
|
| | | | | Three Months Ended March 31, | | | | | | |
|
(dollars in thousands)
| | | 2018 | | 2017 | | | $ Change | | | % Change |
|
Net cash provided by operating activities
| | |
$
|
94,692
| | |
$
|
78,260
| | | |
$
|
16,432
| | | |
21.0
|
%
|
| |
Capital expenditures
| | | |
(41,019
|
)
| | |
(35,917
|
)
| | | |
(5,102
|
)
| | |
14.2
|
%
|
| |
Interest expense
| | | |
14,723
| | | |
7,606
| | | | |
7,117
| | | |
93.6
|
%
|
| |
Amortization of debt issuance cost
| | | |
(970
|
)
| | |
(400
|
)
| | | |
(570
|
)
| | |
142.5
|
%
|
| |
Income tax provision
| | | |
9,902
| | | |
19,144
| | | | |
(9,242
|
)
| | |
(48.3
|
)%
|
| |
Changes in operating assets and liabilities
| | | |
10,391
| | | |
(10,133
|
)
| | | |
20,524
| | | |
(202.5
|
)%
|
| |
Change in deferred income taxes
| | | |
(5,710
|
)
| | |
203
| | | | |
(5,913
|
)
| | |
NM
| |
| |
(Gain) loss on deferred compensation
| | | |
(84
|
)
| | |
90
| | | | |
(174
|
)
| | |
(193.3
|
)%
|
| |
Acquisition-related costs
| | | |
-
| | | |
1,482
| | | | |
(1,482
|
)
| | |
(100.0
|
)%
|
| |
Severance expense
| | | |
-
| | | |
1,254
| | | | |
(1,254
|
)
| | |
(100.0
|
)%
|
| |
Billing system conversion costs
| | | |
840
| | | |
-
| | | | |
840
| | | |
NM
| |
| |
Other (income) expense, net
| | |
|
(617
|
)
| |
|
(287
|
)
| | |
|
(330
|
)
| | |
115.0
|
%
|
|
Adjusted EBITDA less capital expenditures
| | |
$
|
82,148
|
| |
$
|
61,302
|
| | |
$
|
20,846
|
| | |
34.0
|
%
|
|
| | | | | | | | | | | | |
|
NM = Not meaningful.
| | | | | | | | | | | |
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| CABLE ONE, INC. |
| OPERATING STATISTICS |
| (Unaudited) |
|
|
|
| |
|
| | |
| |
| |
| |
|
| | |
| |
| | | | | | As of March 31, | | | Year-Over-Year |
| | | | | | 2018 | | 2017 | | | % Change |
| | | | | | Legacy CABO | | NewWave | | Combined | | Legacy CABO | | | Legacy CABO | | Combined |
| Homes Passed | | | | 1,626,112 | | (1) | | | 452,231 | | | | 2,078,343 | | | | 1,674,919 | | | | (2.9 | )% | | | 24.1 | % |
| | | | | | | | | | | | | | | | | | |
|
| Total Customers | | | | 655,319 | | | | | 145,817 | | | | 801,136 | | | | 660,968 | | | | (0.9 | )% | | | 21.2 | % |
| |
Non-video
| | | |
381,877
| | | | |
70,111
| | | |
451,988
| | | |
353,205
| | | |
8.1
|
%
| | |
28.0
|
%
|
| |
Percent of total
| | | |
58.3
|
%
| | | |
48.1
|
%
| | |
56.4
|
%
| | |
53.4
|
%
| | | | | | |
| | | | | | | | | | | | | | | | | | |
|
| Residential Customers | | | | 599,006 | | | | | 134,570 | | | | 733,576 | | | | 608,515 | | | | (1.6 | )% | | | 20.6 | % |
| | | | | | | | | | | | | | | | | | |
|
| |
Data PSUs
| | | |
482,251
| | | | |
109,811
| | | |
592,062
| | | |
477,439
| | | |
1.0
|
%
| | |
24.0
|
%
|
| |
Video PSUs
| | | |
260,686
| | | | |
73,349
| | | |
334,035
| | | |
293,726
| | | |
(11.2
|
)%
| | |
13.7
|
%
|
| |
Voice PSUs
| | |
|
85,644
|
| | |
|
20,964
|
| |
|
106,608
|
| |
|
94,741
|
| | |
(9.6
|
)%
| | |
12.5
|
%
|
| |
Total residential PSUs
| | | |
828,581
| | | | |
204,124
| | | |
1,032,705
| | | |
865,906
| | | |
(4.3
|
)%
| | |
19.3
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| Business Customers | | | | 56,313 | | | | | 11,247 | | | | 67,560 | | | | 52,453 | | | | 7.4 | % | | | 28.8 | % |
| | | | | | | | | | | | | | | | | | |
|
| |
Data PSUs
| | | |
49,976
| | | | |
9,512
| | | |
59,488
| | | |
45,888
| | | |
8.9
|
%
| | |
29.6
|
%
|
| |
Video PSUs
| | | |
12,756
| | | | |
4,083
| | | |
16,839
| | | |
13,461
| | | |
(5.2
|
)%
| | |
25.1
|
%
|
| |
Voice PSUs
| | |
|
20,351
|
| | |
|
4,961
|
| |
|
25,312
|
| |
|
18,627
|
| | |
9.3
|
%
| | |
35.9
|
%
|
| |
Total business PSUs
| | | |
83,083
| | | | |
18,556
| | | |
101,639
| | | |
77,976
| | | |
6.5
|
%
| | |
30.3
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| Penetration | | | | | | | | | | | | | | | | |
| |
Data
| | | |
32.7
|
%
| | | |
26.4
|
%
| | |
31.3
|
%
| | |
31.2
|
%
| | |
1.5
|
%
| | |
0.1
|
%
|
| |
Video
| | | |
16.8
|
%
| | | |
17.1
|
%
| | |
16.9
|
%
| | |
18.3
|
%
| | |
(1.5
|
)%
| | |
(1.4
|
)%
|
| |
Voice
| | | |
6.5
|
%
| | | |
5.7
|
%
| | |
6.3
|
%
| | |
6.8
|
%
| | |
(0.3
|
)%
| | |
(0.5
|
)%
|
| | | | | | | | | | | | | | | | | | |
|
| Share of First Quarter Revenues | | | | | | | | | | | | | | | | |
| |
Residential data
| | | |
46.0
|
%
| | | |
38.4
|
%
| | |
44.6
|
%
| | |
43.5
|
%
| | |
2.5
|
%
| | |
1.1
|
%
|
| |
Business services
| | |
|
13.9
|
%
| | |
|
15.2
|
%
| |
|
14.2
|
%
| |
|
13.0
|
%
| | |
0.9
|
%
| | |
1.2
|
%
|
| |
Total
| | | |
59.9
|
%
| | | |
53.6
|
%
| | |
58.8
|
%
| | |
56.5
|
%
| | |
3.4
|
%
| | |
2.3
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| ARPU - First Quarter | | | | | | | | | | | | | | | | |
| |
Residential data (2) | | |
$
|
69.45
| | | |
$
|
56.88
| | |
$
|
67.12
| | |
$
|
63.53
| | | |
9.3
|
%
| | |
5.7
|
%
|
| |
Residential video (2) | | |
$
|
87.25
| | | |
$
|
85.74
| | |
$
|
86.92
| | |
$
|
80.47
| | | |
8.4
|
%
| | |
8.0
|
%
|
| |
Residential voice (2) | | |
$
|
34.44
| | | |
$
|
26.29
| | |
$
|
32.84
| | |
$
|
34.18
| | | |
0.8
|
%
| | |
(3.9
|
)%
|
| |
Business services (3) | | |
$
|
180.79
| | | |
$
|
220.32
| | |
$
|
187.40
| | |
$
|
172.87
| | | |
4.6
|
%
| | |
8.4
|
%
|
| | | | | | | | | | | | | | | | | | |
|
| Number of Employees | | | | 1,803 | | | | | 481 | | | | 2,284 | | | | 1,881 | | | | (4.1 | )% | | | 21.4 | % |
|
|
| | | | | | | | | | | | | | | | | |
| (1) |
|
Homes passed represents the number of residential and business
serviceable addresses within our footprint. During the first quarter
of 2018, the number of Legacy CABO homes passed was reduced by
approximately 74,000 to adjust for duplicate and non-serviceable
addresses.
|
| (2) |
|
Average monthly revenue per unit values represent the applicable
quarterly residential service revenues divided by the corresponding
average of the number of PSUs at the beginning and end of each
period, divided by three.
|
| (3) |
|
Average monthly revenue per unit 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.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180509005510/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.