Press Release

Cable One Reports First Quarter 2021 Results

Company Release -
5/6/2021 4:15 PM ET

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, 2021.

Cable One completed the acquisition of Valu-Net LLC (“Valu-Net”) on July 1, 2020 and the contribution of its Anniston, Alabama system (the “Anniston System”) to Hargray Communications, a data, video and voice services provider (“Hargray”), on October 1, 2020. The results discussed below and presented in the tables within this press release include Valu-Net operations and exclude Anniston System operations for the periods since the completion of their respective acquisition and disposition.

First Quarter 2021 Highlights:

  • Total revenues were $341.3 million in the first quarter of 2021 compared to $321.2 million in the first quarter of 2020, an increase of 6.2%. Residential data revenues increased 18.5% and business services revenues increased 4.3% year-over-year.
  • Net income was $68.6 million in the first quarter of 2021, a decrease of 1.1% year-over-year. Adjusted EBITDA(1) was $180.4 million, an increase of 14.4% year-over-year. Net profit margin was 20.1% and Adjusted EBITDA margin(1) was 52.9%.
  • Net cash provided by operating activities was $164.0 million in the first quarter of 2021, an increase of 38.4% year-over-year. Adjusted EBITDA less capital expenditures(1) was $108.5 million in the first quarter of 2021 compared to $93.0 million in the first quarter of 2020.
  • Residential data primary service units (“PSUs”) grew by approximately 22,000, or 2.8%, sequentially. Residential data PSUs grew by approximately 86,000, or 12.0%, year-over-year, which excludes approximately 17,000 prior year residential data PSUs from the Anniston System that were contributed to Hargray and includes approximately 5,000 residential data PSUs acquired in the Valu-Net acquisition. Business services PSUs grew by approximately 1,000, or 0.8%, sequentially and were flat compared to the prior year.
  • In March 2021, the Company completed a private offering (the “Convertible Notes Offering”) of $575.0 million aggregate principal amount of 0.000% convertible senior notes due 2026 (the “2026 Notes”) and $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2028 (together with the 2026 Notes, the “Convertible Notes”).

Other Highlights

  • On May 3, 2021, the Company obtained a new senior secured term loan facility in an aggregate principal amount of $800.0 million (the “Term Loan B-4”) in connection with the closing of the acquisition of the remaining equity interests in Hargray that it did not already own (the “Hargray Acquisition”).
  • On May 3, 2021, the Company completed the Hargray Acquisition, which represented the purchase of approximately 85% of Hargray on a fully diluted basis. The transaction implied a $2.2 billion total enterprise value for 100% of Hargray on a cash-free and debt-free basis. The Company financed the Hargray Acquisition with cash on hand and proceeds from indebtedness, including the net proceeds from the Convertible Notes Offering and the Term Loan B-4.

(1)

Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA less capital expenditures are defined in the section of this press release entitled “Use of Non-GAAP Financial Measures.” Adjusted EBITDA and Adjusted EBITDA less capital expenditures are reconciled to net income, Adjusted EBITDA margin is reconciled to net profit margin and Adjusted EBITDA less capital expenditures is also reconciled to net cash provided by operating activities. Refer to the “Reconciliations of Non-GAAP Measures” tables within this press release.

First Quarter 2021 Financial Results Compared to First Quarter 2020

Revenues increased $20.1 million, or 6.2%, to $341.3 million for the first quarter of 2021, including $3.2 million from Valu-Net operations. The remaining increase was driven primarily by organic residential data and business services revenue growth, partially offset by decreases in organic residential video and residential voice revenues. For the first quarter of 2021 and 2020, residential data revenues comprised 53.8% and 48.3% of total revenues, respectively, and business services revenues comprised 17.7% and 18.0% of total revenues, respectively.

Operating expenses (excluding depreciation and amortization) were $101.5 million in the first quarter of 2021 and decreased $4.5 million, or 4.2%, compared to the first quarter of 2020. The decrease in operating expenses was primarily attributable to a $6.0 million reduction in programming expenses, partially offset by $1.2 million of additional expenses related to Valu-Net operations. Operating expenses as a percentage of revenues were 29.7% and 33.0% for the first quarter of 2021 and 2020, respectively.

Selling, general and administrative expenses were $69.0 million and $62.9 million for the first quarter of 2021 and 2020, respectively. The increase in selling, general and administrative expenses was primarily attributable to increases of $2.4 million in acquisition-related costs, $1.8 million in health insurance costs, $1.7 million in labor and other compensation-related costs and $1.0 million in system conversion costs, partially offset by a $1.5 million decrease in bad debt expense. Selling, general and administrative expenses as a percentage of revenues were 20.2% and 19.6% for the first quarter of 2021 and 2020, respectively.

Depreciation and amortization expense was $68.5 million for the first quarter of 2021 and increased $3.3 million, or 5.0%, compared to the first quarter of 2020. Depreciation and amortization expense as a percentage of revenues was 20.1% and 20.3% for the first quarter of 2021 and 2020, respectively.

Interest expense increased $4.9 million, or 26.3%, to $23.6 million, driven primarily by higher interest rate swap settlement expense and additional outstanding debt, partially offset by lower interest rates.

Other income, net, of $8.1 million for the first quarter of 2021 consisted primarily of a $5.6 million non-cash gain on fair value adjustment associated with the call and put options to acquire the remaining equity interests in Mega Broadband Investments Holdings LLC and $3.2 million of investment and interest income, partially offset by $0.7 million of financing cost write-offs. Other income, net, of $1.7 million for the first quarter of 2020 consisted of interest and investment income.

Income tax provision was $17.7 million in the first quarter of 2021 and increased $11.3 million, or 174.2%, compared to the prior year quarter. The Company’s effective tax rate was 20.4% and 8.5% for the first quarter of 2021 and 2020, respectively. The increases in the income tax provision and the effective tax rate were due primarily to $7.0 million of income tax benefits attributable to the net operating loss carryback provision of the Coronavirus Aid, Relief, and Economic Security Act from the first quarter of 2020 that did not recur.

Net income was $68.6 million in the first quarter of 2021 compared to $69.3 million in the prior year quarter.

Adjusted EBITDA was $180.4 million and $157.7 million for the first quarter of 2021 and 2020, respectively, an increase of 14.4%. Capital expenditures for the first quarter of 2021 totaled $71.9 million compared to $64.8 million for the first quarter of 2020. Adjusted EBITDA less capital expenditures for the first quarter of 2021 was $108.5 million compared to $93.0 million in the prior year quarter.

Liquidity and Capital Resources

At March 31, 2021, the Company had $1.5 billion of cash and cash equivalents on hand compared to $574.9 million at December 31, 2020. The Company’s debt balance was $3.1 billion and $2.2 billion at March 31, 2021 and December 31, 2020, respectively. The Company had $459.0 million available for borrowing under its revolving credit facility as of March 31, 2021.

The Company paid $15.1 million in dividends to stockholders during the first quarter of 2021.

In March 2021, the Company completed the Convertible Notes Offering and received net proceeds of $895.2 million, after deducting initial purchaser discounts and other offering costs and expenses. In May 2021, the Company also obtained the Term Loan B-4. The Company used cash on hand and proceeds from indebtedness, including the net proceeds from the Convertible Notes Offering and the Term Loan B-4, to finance the Hargray Acquisition.

Conference Call

Cable One will host a conference call with the financial community to discuss results for the first quarter of 2021 on Thursday, May 6, 2021, at 5 p.m. Eastern Time (ET).

The conference call will be available via a live audio webcast on the Cable One Investor Relations website at ir.cableone.net or by dialing 1-844-378-6483 (Canada: 1-855-669-9657 or International: 1-412-542-4178). Participants should register for the webcast or dial in for the conference call shortly before 5 p.m. ET.

A replay of the call will be available from May 6, 2021 until May 20, 2021 at ir.cableone.net.

Additional Information Available on Website

The information in this press release should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2021 (the “First Quarter 2021 Form 10-Q”), which will be posted on the “SEC Filings” section of the Cable One Investor Relations website at ir.cableone.net when it is filed with the Securities and Exchange Commission (the “SEC”). Investors and others interested in more information about Cable One should consult the Company’s website, which is regularly updated with financial and other important information about the Company.

Use of Non-GAAP Financial Measures

The Company uses certain measures that are not defined by generally accepted accounting principles in the United States (“GAAP”) to evaluate various aspects of its business. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA are non-GAAP financial measures and should be considered in addition to, not as superior to, or as a substitute for, net income, net profit margin, net cash provided by operating activities or capital expenditures as a percentage of net income reported in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA less capital expenditures are reconciled to net income, Adjusted EBITDA margin is reconciled to net profit margin and capital expenditures as a percentage of Adjusted EBITDA is reconciled to capital expenditures as a percentage of net income. Adjusted EBITDA less capital expenditures is also reconciled to net cash provided by operating activities. These reconciliations are included in the “Reconciliations of Non-GAAP Measures” tables within this press release.

“Adjusted EBITDA” is defined as net income plus interest expense, income tax provision, depreciation and amortization, equity-based compensation, (gain) loss on deferred compensation, acquisition-related costs, (gain) loss on asset sales and disposals, system conversion costs, rebranding costs, equity method investment (income) loss, other (income) expense and other unusual items, as provided in the “Reconciliations of Non-GAAP Measures” tables within this press release. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company’s business as well as other non-cash or special items and is unaffected by the Company’s capital structure or investment activities. This measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the Company’s cash cost of debt financing. These costs are evaluated through other financial measures.

“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided by total revenues.

“Adjusted EBITDA less capital expenditures,” when used as a liquidity measure, is calculated as net cash provided by operating activities excluding the impact of capital expenditures, interest expense, income tax provision, changes in operating assets and liabilities, change in deferred income taxes and other unusual items, as provided in the “Reconciliations of Non-GAAP Measures” tables within this press release.

“Capital expenditures as a percentage of Adjusted EBITDA” is defined as capital expenditures divided by Adjusted EBITDA.

The Company uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA to assess its performance, and it also uses Adjusted EBITDA less capital expenditures as an indicator of its ability to fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the measure used in the leverage ratio calculations under the Company’s credit agreement and the indenture governing the Company’s non-convertible senior unsecured notes to determine compliance with the covenants contained in the credit agreement and the ability to take certain actions under the indenture governing the non-convertible senior unsecured notes. Adjusted EBITDA and capital expenditures are also significant performance measures used by the Company in its 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 that Adjusted EBITDA, Adjusted EBITDA margin and capital expenditures as a percentage of Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. The Company believes that Adjusted EBITDA less capital expenditures is useful to investors as it shows the Company’s performance while taking into account cash outflows for capital expenditures and is one of several indicators of the Company’s ability to service debt, make investments and/or return capital to its stockholders.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures, capital expenditures as a percentage of Adjusted EBITDA and similar measures with similar titles are common measures used by investors, analysts and peers to compare performance in the Company’s industry, although the Company’s measures of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA may not be directly comparable to similarly titled measures reported by other companies.

About Cable One

Cable One, Inc. (NYSE: CABO) is a leading broadband communications provider serving more than 1.1 million residential and business customers in 24 states through its Sparklight® and Clearwave® brands. Sparklight provides consumers with a wide array of connectivity and entertainment services, including high-speed internet and advanced Wi-Fi solutions, cable television and phone service. Sparklight Business and Clearwave provide 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 may contain “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about the Company’s industry, business, strategy, acquisitions and strategic investments, dividend policy, financial results and financial condition as well as anticipated impacts from, and the Company’s responses to, the COVID-19 pandemic. Forward-looking statements often include words such as “will,” “should,” “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. The Company’s actual results may vary materially from those expressed or implied in its forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by the Company or on its behalf. Important factors that could cause the Company’s actual results to differ materially from those in its forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors, which are discussed in the Company’s latest Annual Report on Form 10-K and the First Quarter 2021 Form 10-Q as filed with the SEC:

  • the duration and severity of the COVID-19 pandemic and its effects on the Company’s business, financial condition, results of operations and cash flows;
  • rising levels of competition from historical and new entrants in the Company’s markets;
  • recent and future changes in technology;
  • the Company’s ability to continue to grow its business services products;
  • increases in programming costs and retransmission fees;
  • the Company’s ability to obtain hardware, software and operational support from vendors;
  • risks that the Company may fail to realize the benefits anticipated as a result of the Hargray Acquisition;
  • risks relating to existing or future acquisitions and strategic investments by the Company;
  • risks that the implementation of the Company’s new enterprise resource planning system disrupts business operations;
  • the integrity and security of the Company’s network and information systems;
  • the impact of possible security breaches and other disruptions, including cyber-attacks;
  • the Company’s failure to obtain necessary intellectual and proprietary rights to operate its business and the risk of intellectual property claims and litigation against the Company;
  • legislative or regulatory efforts to impose network neutrality and other new requirements on the Company’s data services;
  • additional regulation of the Company’s video and voice services;
  • the Company’s ability to renew cable system franchises;
  • increases in pole attachment costs;
  • changes in local governmental franchising authority and broadcast carriage regulations;
  • the potential adverse effect of the Company’s level of indebtedness on its business, financial condition or results of operations and cash flows;
  • the restrictions the terms of the Company’s indebtedness place on its business and corporate actions;
  • the possibility that interest rates will rise, causing the Company’s obligations to service its variable rate indebtedness to increase significantly;
  • risks associated with the Company’s convertible indebtedness;
  • the Company’s ability to continue to pay dividends;
  • provisions in the Company’s charter, by-laws and Delaware law that could discourage takeovers and limit the judicial forum for certain disputes;
  • adverse economic conditions;
  • fluctuations in the Company’s stock price;
  • dilution from equity awards, convertible indebtedness and potential future convertible debt and stock issuances;
  • damage to the Company’s reputation or brand image;
  • the Company’s ability to retain key employees;
  • the Company’s ability to incur future indebtedness;
  • provisions in the Company’s charter that could limit the liabilities for directors; and
  • the other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including but not limited to its latest Annual Report on Form 10-K and the First Quarter 2021 Form 10-Q as filed with the SEC.

Any forward-looking statements made by the Company in this communication speak only as of the date on which they are made. The Company is under no obligation, and expressly disclaims any obligation, except as required by law, to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.

CABLE ONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

 

 

Three Months Ended March 31,

 

 

(dollars in thousands, except per share data)

2021

 

2020

 

Change

 

% Change

Revenues:

Residential data

$

183,605

$

154,990

$

28,615

18.5%

Residential video

 

76,017

 

85,322

 

(9,305)

(10.9)%

Residential voice

 

10,477

 

12,427

 

(1,950)

(15.7)%

Business services

 

60,362

 

57,862

 

2,500

4.3%

Other

 

10,801

 

10,595

 

206

1.9%

Total Revenues

 

341,262

 

321,196

 

20,066

6.2%

Costs and Expenses:

 

 

 

 

 

 

 

Operating (excluding depreciation and amortization)

 

101,464

 

105,928

 

(4,464)

(4.2)%

Selling, general and administrative

 

69,042

 

62,884

 

6,158

9.8%

Depreciation and amortization

 

68,530

 

65,279

 

3,251

5.0%

(Gain) loss on asset sales and disposals, net

 

(120)

 

(5,621)

 

5,501

(97.9)%

Total Costs and Expenses

 

238,916

 

228,470

 

10,446

4.6%

Income from operations

 

102,346

 

92,726

 

9,620

10.4%

Interest expense

 

(23,581)

 

(18,674)

 

(4,907)

26.3%

Other income (expense), net

 

8,100

 

1,734

 

6,366

NM

Income before income taxes and equity method investment income (loss), net

 

86,865

 

75,786

 

11,079

14.6%

Income tax provision

 

17,715

 

6,460

 

11,255

174.2%

Income before equity method investment income (loss), net

 

69,150

 

69,326

 

(176)

(0.3)%

Equity method investment income (loss), net

 

(568)

 

-

 

(568)

NM

Net income

$

68,582

$

69,326

$

(744)

(1.1)%

 

Net Income per Common Share:

Basic

$

11.41

$

12.17

$

(0.76)

(6.2)%

Diluted

$

11.19

$

12.05

$

(0.86)

(7.1)%

Weighted Average Common Shares Outstanding:

Basic

6,012,402

5,697,904

314,498

5.5%

Diluted

6,168,261

5,755,059

413,202

7.2%

 

Unrealized gain (loss) on cash flow hedges and other, net of tax

$

55,467

$

(84,625)

$

140,092

(165.5)%

Comprehensive income (loss)

$

124,049

$

(15,299)

$

139,348

NM

________

NM = Not meaningful.

CABLE ONE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollars in thousands, except par values)

March 31, 2021

December 31, 2020

Assets

Current Assets:

Cash and cash equivalents

$

1,537,298

$

574,909

Accounts receivable, net

 

30,352

 

38,768

Income taxes receivable

 

15,113

 

41,245

Prepaid and other current assets

 

30,239

 

17,891

Total Current Assets

 

1,613,002

 

672,813

Equity investments

 

807,093

 

807,781

Property, plant and equipment, net

 

1,278,972

 

1,265,460

Intangible assets, net

 

1,267,702

 

1,278,198

Goodwill

 

430,543

 

430,543

Other noncurrent assets

 

34,953

 

33,543

Total Assets

$

5,432,265

$

4,488,338

 

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts payable and accrued liabilities

$

175,281

$

174,139

Deferred revenue

 

23,619

 

21,051

Current portion of long-term debt

 

26,500

 

26,392

Total Current Liabilities

 

225,400

 

221,582

Long-term debt

 

3,038,754

 

2,148,798

Deferred income taxes

 

391,921

 

366,675

Interest rate swap liability

 

81,917

 

155,357

Other noncurrent liabilities

 

93,626

 

100,627

Total Liabilities

 

3,831,618

 

2,993,039

Stockholders' Equity

Preferred stock ($0.01 par value; 4,000,000 shares authorized; none issued or outstanding)

 

-

 

-

Common stock ($0.01 par value; 40,000,000 shares authorized; 6,175,399 shares issued; and 6,034,609 and 6,027,704 shares outstanding as of March 31, 2021 and December 31, 2020, respectively)

 

62

 

62

Additional paid-in capital

 

539,713

 

535,586

Retained earnings

 

1,281,667

 

1,228,172

Accumulated other comprehensive loss

 

(85,216)

 

(140,683)

Treasury stock, at cost (140,790 and 147,695 shares held as of March 31, 2021 and December 31, 2020, respectively)

 

(135,579)

 

(127,838)

Total Stockholders' Equity

 

1,600,647

 

1,495,299

Total Liabilities and Stockholders' Equity

$

5,432,265

$

4,488,338

CABLE ONE, INC.

 

RECONCILIATIONS OF NON-GAAP MEASURES

 

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

(dollars in thousands)

2021

 

2020

 

Change

 

% Change

Net income

$

68,582

$

69,326

$

(744)

(1.1)%

Net profit margin

 

20.1%

 

21.6%

 

 

 

 

Plus:

Interest expense

 

23,581

 

18,674

 

4,907

26.3%

Income tax provision

 

17,715

 

6,460

 

11,255

174.2%

Depreciation and amortization

 

68,530

 

65,279

 

3,251

5.0%

Equity-based compensation

 

4,127

 

3,221

 

906

28.1%

(Gain) loss on deferred compensation

 

27

 

(227)

 

254

(111.9)%

Acquisition-related costs

 

4,370

 

2,017

 

2,353

116.7%

(Gain) loss on asset sales and disposals, net

 

(120)

 

(5,621)

 

5,501

(97.9)%

System conversion costs

 

1,051

 

48

 

1,003

NM

 

Rebranding costs

 

44

 

268

 

(224)

(83.6)%

 

Equity method investment (income) loss, net

 

568

 

-

 

568

NM

Other (income) expense, net

 

(8,100)

 

(1,734)

 

(6,366)

NM

Adjusted EBITDA

$

180,375

$

157,711

$

22,664

14.4%

Adjusted EBITDA margin

 

52.9%

 

49.1%

 

 

 

 

Less:

Capital expenditures

$

71,853

$

64,757

$

7,096

11.0%

Capital expenditures as a percentage of net income

 

104.8%

 

93.4%

 

 

 

Capital expenditures as a percentage of Adjusted EBITDA

 

39.8%

 

41.1%

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA less capital expenditures

$

108,522

$

92,954

$

15,568

16.7%

________

NM = Not meaningful.

 

Three Months Ended March 31,

 

 

(dollars in thousands)

2021

 

2020

 

Change

 

% Change

Net cash provided by operating activities

$

163,993

$

118,500

$

45,493

38.4%

Capital expenditures

 

(71,853)

 

(64,757)

 

(7,096)

11.0%

Interest expense

 

23,581

 

18,674

 

4,907

26.3%

Non-cash interest expense

 

(1,432)

 

(1,106)

 

(326)

29.5%

Income tax provision

 

17,715

 

6,460

 

11,255

174.2%

Changes in operating assets and liabilities

 

(18,816)

 

34,919

 

(53,735)

(153.9)%

Change in deferred income taxes

 

(7,131)

 

(20,108)

 

12,977

(64.5)%

(Gain) loss on deferred compensation

 

27

 

(227)

 

254

(111.9)%

Acquisition-related costs

 

4,370

 

2,017

 

2,353

116.7%

 

Write-off of debt issuance costs

 

(487)

 

-

 

(487)

NM

System conversion costs

 

1,051

 

48

 

1,003

NM

 

Rebranding costs

 

44

 

268

 

(224)

(83.6)%

 

Fair value adjustment

 

5,560

 

-

 

5,560

NM

Other (income) expense, net

 

(8,100)

 

(1,734)

 

(6,366)

NM

Adjusted EBITDA less capital expenditures

$

108,522

$

92,954

$

15,568

16.7%

________

NM = Not meaningful.

 

CABLE ONE, INC.

OPERATING STATISTICS

(Unaudited)

 

 

As of March 31,

 

Change

(in thousands, except percentages and ARPU data)

2021

 

2020

 

Amount

 

%

Homes Passed

2,314

2,332

(18)

(0.8)%

 

Residential Customers

902

836

65

7.8%

 

 

 

 

 

Data PSUs

799

713

86

12.0%

Video PSUs

239

288

(49)

(17.0)%

Voice PSUs

87

102

(15)

(14.6)%

Total residential PSUs

1,125

1,103

22

2.0%

 

Business Customers

86

85

1

0.8%

 

Data PSUs

81

79

2

2.6%

Video PSUs

13

15

(2)

(16.1)%

Voice PSUs

35

35

1

1.5%

Total business services PSUs

129

129

0

0.1%

 

Total Customers

988

921

66

7.2%

Total non-video

734

617

117

19.0%

Percent of total

74.3%

67.0%

 

7.3%

 

Data PSUs

880

793

88

11.0%

Video PSUs

252

303

(51)

(17.0)%

Voice PSUs

122

136

(14)

(10.5)%

Total PSUs

1,254

1,232

22

1.8%

 

Penetration

Data

38.1%

34.0%

 

4.1%

Video

10.9%

13.0%

 

(2.1)%

Voice

5.3%

5.8%

 

(0.5)%

 

Share of First Quarter Revenues

Residential data

53.8%

48.3%

 

5.5%

Business services

17.7%

18.0%

 

(0.3)%

Total

71.5%

66.3%

 

5.2%

 

ARPU - First Quarter

Residential data(1)

$

77.24

$

72.86

$

4.38

6.0%

Residential video(1)

$

103.86

$

96.75

$

7.11

7.3%

Residential voice(1)

$

39.59

$

40.07

$

(0.48)

(1.2)%

Business services(2)

$

235.30

$

226.78

$

8.52

3.8%

_________
Note: All totals, percentages and year-over-year changes are calculated using exact numbers. Minor differences may exist due to rounding.

(1)

Average monthly revenue per unit (“ARPU”) values represent the applicable quarterly residential service revenues (excluding installation and activation fees) divided by the corresponding average of the number of PSUs at the beginning and end of each period, divided by three, except that for any PSUs added or subtracted as a result of an acquisition or divestiture occurring during the period, the associated ARPU values represent the applicable residential service revenues (excluding installation and activation fees) divided by the pro-rated average number of PSUs during such period.

(2)

ARPU values represent quarterly business services revenues divided by the average of the number of business customer relationships at the beginning and end of each period, divided by three, except that for any business customer relationships added or subtracted as a result of an acquisition or divestiture occurring during the period, the associated ARPU values represent business services revenues divided by the pro-rated average number of business customer relationships during such period.

 

Trish Niemann
Senior Director, Corporate Communications
602-364-6372
patricia.niemann@cableone.biz

Steven Cochran
Chief Financial Officer
investor_relations@cableone.biz

Source: Cable One, Inc.

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