Customer Metrics - As of March 31, 2025, the company served approximately 1.1 million residential and business customers out of 2.8 million passings, with 1,045,000 subscribing to data services, 108,000 to video services, and 103,000 to voice services[100]. - The company experienced a decline in residential data PSUs by 2.3% to 945,000 and a significant drop in residential video PSUs by 19.4% to 101,300[109]. - Business data PSUs increased by 0.8% to 99,800, indicating continued growth in this segment[109]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $380.6 million, a decrease of 5.9% from $404.3 million in the same period of 2024[108]. - Net income for the same period was $2.6 million, down 93.0% from $37.4 million in 2024[108]. - Adjusted EBITDA for the three months ended March 31, 2025, was $202.7 million, a decrease of 6.6% from $217.1 million in 2024[108]. - Residential data service revenues decreased by $10.7 million, or 4.5%, primarily due to a decrease in subscribers and a 3.1% decrease in ARPU[115]. - Residential video service revenues decreased by $9.6 million, or 15.8%, mainly due to a decrease in subscribers, partially offset by a rate adjustment[115]. - Business data revenues increased by $0.7 million, or 1.2%, due to an increase in business data subscribers[116]. - Operating expenses (excluding depreciation and amortization) were $99.9 million, a decrease of $6.7 million or 6.3% compared to the prior year[117]. - Selling, general and administrative expenses increased by $5.0 million, or 5.6%, totaling $95.4 million for the three months ended March 31, 2025[118]. - Net income for the three months ended March 31, 2025, was $2.6 million, a significant decrease of $34.7 million or 93.0% compared to $37.4 million in 2024[124]. - Adjusted EBITDA for the three months ended March 31, 2025, was $202.7 million, a decrease of $14.3 million or 6.6% from $217.1 million in 2024[130]. Capital Expenditures and Investments - Capital expenditures increased by 8.0% to $71.1 million compared to $65.9 million in the previous year[108]. - The company plans to continue investing in infrastructure improvements and expanding high-speed data services in existing and newly acquired markets[104]. - The company has ongoing capital expenditure requirements, with total capital expenditures for the three months ended March 31, 2025, amounting to $71.1 million, an increase from $65.9 million in the same period of 2024[152]. Cash Flow and Debt Management - Net cash provided by operating activities decreased by $48.4 million year-over-year to $116.3 million, a decline of 29.4%[136]. - Net cash used in investing activities decreased by $13.4 million year-over-year to $56.6 million, primarily due to $10.7 million from the sale of an equity investment[137]. - Net cash used in financing activities decreased by $10.0 million year-over-year to $64.3 million, mainly due to lower debt repayments[138]. - The company had $149.1 million in cash and cash equivalents at the end of the period, down 29.3% from $210.7 million a year earlier[136]. - As of March 31, 2025, the company had $273.0 million in borrowings under the Revolving Credit Facility at an average interest rate of 6.2%[143]. - The company is party to two interest rate swap agreements to convert $1.2 billion of variable rate SOFR indebtedness to fixed rates, with fixed base rates of 2.595% and 2.691%[150]. - The unamortized debt discount associated with the Convertible Notes was $6.7 million as of March 31, 2025[148]. - As of March 31, 2025, the company had outstanding Senior Notes of $650.0 million, 2026 Notes of $575.0 million, and 2028 Notes of $345.0 million[160]. - The fair market values of the Senior Notes, 2026 Notes, and 2028 Notes were $514.3 million, $545.5 million, and $274.3 million, respectively[160]. Dividend and Share Repurchase - A quarterly dividend of $2.95 per share was approved, resulting in a total distribution of $17.2 million, but the company plans to suspend future dividends, saving approximately $67 million annually[140]. - The company has repurchased 646,244 shares of common stock at an aggregate cost of $556.9 million since becoming publicly traded, with $143.1 million remaining under the share repurchase authorization[139]. Strategic Focus - The strategy focuses on growing higher-margin residential and business data services while de-emphasizing the video business due to escalating programming costs[101]. - The company aims to achieve long-term growth in Adjusted EBITDA and profit margins through disciplined cost management and targeted pricing strategies[105]. Overall Revenue Summary - MBI's total revenues for the twelve months ended March 31, 2025, were approximately $320 million, with around 220,000 residential and business data customers[134]. - Total revenues for the three months ended March 31, 2025, were $380.6 million, a decrease of $23.7 million or 5.9% compared to $404.3 million in the same period of 2024[114].

Financial Data and Key Metrics Changes - For Q1 2025, total revenues were $380.6 million, down from $404.3 million in Q1 2024, representing a decrease of 5.6% year over year [18] - Residential data revenues decreased by $10.7 million or 4.5% year over year, with residential data subscribers and ARPU both declining by 1.1% [18] - Net income for Q1 2025 was $2.6 million, compared to $37.4 million in Q1 2024, driven by lower income from operations and increased non-cash equity method accounting loss [20] - Adjusted EBITDA was $203 million in Q1 2025, representing a 53.3% margin, compared to $217 million and a 53.7% margin in Q1 2024 [20] - Capital expenditures were $71.1 million, an increase of $5.2 million or 8% from Q1 2024 [20] Business Line Data and Key Metrics Changes - Business data revenues grew by 1.2% compared to Q1 2024, with strong performance in carrier and enterprise fiber businesses [19] - Residential video revenues decreased by $9.6 million or 15.8% year over year, driven by losses in video subscribers [19] Market Data and Key Metrics Changes - The company reported a churn rate that remained historically low, despite unusual churn events in Q1 2025 [7][8] - The company is experiencing competitive pressure from mobile operators in nearly all markets, which has not changed significantly [57] Company Strategy and Development Direction - The company is executing a multiyear plan aimed at achieving sustained profitable growth in a competitive environment [5] - A revised capital allocation strategy has been implemented, including the suspension of the quarterly cash dividend to accelerate debt repayment and invest in organic growth initiatives [17][22] - New product offerings such as FlexConnect and Internet Lift are being piloted to attract value-conscious customers and drive growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to broadband revenue growth in 2025, despite a slow start in Q1 [36] - The company is focused on improving customer acquisition and retention through enhanced strategies and new product offerings [9][12] - Management highlighted the importance of a disciplined and strategic approach to customer engagement and retention [46] Other Important Information - The company has a debt balance of approximately $3.6 billion, with a weighted average cost of debt at 3.9% [24] - The company plans to maintain a balanced approach to capital allocation while focusing on long-term growth initiatives [22] Q&A Session Summary Question: What led to the decision to eliminate the dividend? - Management clarified that the decision was based on capital allocation strategies and not due to any going concern or debt covenant issues [31] Question: When can the company expect to see broadband subscriber growth? - Management indicated that while they cannot specify an exact timeline, they believe they will deliver broadband revenue growth in 2025 [36] Question: What were the unusual churn events in the quarter? - Management explained that the unusual churn was due to several factors, including billing migration activities and weather-related events [43] Question: What is the ARPU for the new products FlexConnect and Lyft? - Management stated that while they cannot provide specific ARPU figures yet, they are seeing positive trends in customer satisfaction and data usage for these products [55]

Financial Performance - Total revenues for the first quarter of 2025 were $380.6 million, a decrease of $23.7 million or 5.9% compared to $404.3 million in the first quarter of 2024[3]. - Net income for the first quarter of 2025 was $2.6 million, down 93.0% from $37.4 million in the prior year quarter, resulting in a net profit margin of 0.7%[3][8]. - Adjusted EBITDA for the first quarter of 2025 was $202.7 million, a decrease of $14.3 million or 6.6% from $217.1 million in the first quarter of 2024, with an Adjusted EBITDA margin of 53.3%[3][9]. - The company reported a comprehensive loss of $12.4 million for Q1 2025, compared to a comprehensive income of $55.6 million in Q1 2024, marking a decline of 122.3%[31]. - Basic net income per share decreased to $0.46, a decline of 93.1% from $6.65 in the same period last year[31]. - The net profit margin for Q1 2025 was 0.7%, down from 9.2% in Q1 2024[38]. Revenue Breakdown - Residential data revenues decreased by $10.7 million or 4.5% year-over-year to $225.1 million, primarily due to a reduction in subscribers and a 3.1% decrease in average revenue per unit (ARPU)[6][7]. - Residential video revenue fell by 15.8% to $50.8 million[31]. - Business data revenues grew by 1.2% year-over-year, indicating durable growth in the carrier and enterprise fiber segments[6]. - Average Revenue Per User (ARPU) for residential data decreased by 3.1% to $78.84 from $81.33[41]. - The percentage of total non-video services increased to 89.7% from 87.6% year-over-year[41]. Cash Flow and Debt Management - Cash flows from operating activities were $116.3 million in the first quarter of 2025, down 29.4% from $164.8 million in the first quarter of 2024[3][10]. - The company repaid $40.0 million under its revolving credit facility during the first quarter of 2025, with total net debt paydowns since March 31, 2023, amounting to $271.3 million[6][12]. - The company plans to suspend the quarterly cash dividend, which represents approximately $67 million annually, to allocate funds for debt repayment and organic growth initiatives[14]. - As of March 31, 2025, the company had $149.1 million in cash and cash equivalents and a debt balance of $3.57 billion[11]. - Long-term debt decreased to $2.95 billion from $3.57 billion at the end of 2024[34]. Customer Metrics - Total residential customers decreased by 3.0% to 970.1 thousand from 999.8 thousand year-over-year[41]. - Total customers declined by 2.5% to 1,075.1 thousand from 1,102.4 thousand in the previous year[41]. Operating Expenses - Operating expenses (excluding depreciation and amortization) decreased by 6.3% to $99.9 million[31]. - Capital expenditures for the first quarter of 2025 totaled $71.1 million, an increase of 8.0% from $65.9 million in the first quarter of 2024[3][10]. - Capital expenditures increased by 8.0% to $71,130 compared to $65,887 in Q1 2024[39]. Investment Income - Equity method investment income (loss) showed a significant decline, with a loss of $57.0 million compared to a loss of $22.0 million in Q1 2024, representing a 158.6% increase in losses[31]. - Equity method investment income increased significantly by 158.6% to $56,990 from $22,036 year-over-year[38]. Asset Overview - Total assets as of March 31, 2025, were $6.42 billion, down from $6.53 billion at the end of 2024[34]. - Cash and cash equivalents were $149.1 million, slightly down from $153.6 million at the end of 2024[34].

Financial Data and Key Metrics Changes - For Q4 2024, total revenues were $387.2 million, a decrease of 6% year-over-year from $411.8 million in Q4 2023 [36] - Residential data revenues decreased by 5.4%, while business data revenues increased by 2.3% year-over-year [37] - Net loss for Q4 2024 was $105.2 million compared to a net income of $103.5 million in Q4 2023, primarily due to non-cash charges related to MBI investments [39] - Adjusted EBITDA was $211 million, a decrease of 7% compared to the prior year quarter, with an adjusted EBITDA margin of 54.5% [41] - For the full year 2024, total revenues were $1.58 billion, a decrease of 5.9% from 2023 [43] - Net income for 2024 was $14.5 million compared to $224.6 million in 2023, impacted by a combined $186.5 million non-cash loss associated with MBI [47] Business Line Data and Key Metrics Changes - Residential data PSUs decreased by 5,500 during 2024, including approximately 10,000 ACP customers who disconnected due to the program ending [43] - Business data revenue increased by 2.6%, driven by a gain of over 1,400 PSUs and strong demand from high-value carrier, wholesale, and enterprise customers [45] - ARPU for residential data customers was $80.39 for 2024, a decrease of 4.9% from 2023, but stabilized in the second half of the year due to various initiatives [44] Market Data and Key Metrics Changes - The company experienced above-average churn activity among remaining ACP customers in early Q4 2024 [37] - The competitive landscape is evolving, with new competition from third-party overbuilders moderating in the company's markets [16] - The company believes incumbent fiber builds reduce the chance of new third-party entrants, maintaining a two-party market favorable to its long-term economics [18] Company Strategy and Development Direction - The company is executing a phased plan for long-term growth, focusing on broadband revenue growth as a top priority [10] - Strategic initiatives include migrating acquired operations to a unified billing system and enhancing customer experience through intelligent Wi-Fi and cybersecurity solutions [26][30] - The company aims to leverage its network capabilities and customer experience to differentiate itself in a competitive landscape [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of business data services and the ability to navigate competitive dynamics effectively [16][18] - The company anticipates that the foundational actions taken in 2024 will lead to smart, balanced, and sustainable growth in 2025 [34][58] - Management highlighted the importance of customer experience and operational efficiencies as key drivers for future growth [22][31] Other Important Information - The company completed the rebranding of acquired companies and achieved 100% aided awareness for its Sparklight brand [27] - Capital expenditures for 2024 totaled $286.4 million, with a focus on new market expansion and integration activities [48] - The company distributed $67.9 million in dividends to shareholders and repaid $238.1 million of debt in 2024 [52] Q&A Session Summary Question: Thoughts on addressing the MBI call option and 2026 converts - Management discussed the flexibility gained from the strategic amendment to the MBI partnership, which enhances liquidity for near-term refinancing strategies [65][66] Question: Future ARPU trends and growth strategies - Management indicated that various strategies will be employed to grow units and expand ARPU, depending on market conditions [70][72] Question: Churn dynamics and subscriber growth - Management clarified that churn was actually the second lowest in the last three years for Q4 2024, despite some unique headwinds affecting performance [94] Question: Insights on competitive dynamics and market share - Management noted that the competitive landscape is changing, with less independent overbuilding and a focus on defending their market position [106][110] Question: Expectations for fiber overlap and market share - Management expects fiber overlap to increase, particularly from incumbent telcos, but remains confident in their competitive positioning [117][120]

Cable One (CABO) came out with quarterly earnings of $1.53 per share, missing the Zacks Consensus Estimate of $9.91 per share. This compares to earnings of $10.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -84.56%. A quarter ago, it was expected that this telecommunications company would post earnings of $9.93 per share when it actually produced earnings of $7.92, delivering a surprise of -20.24%.Over the last four quarte ...

Financial Data and Key Metrics Changes - For Q4 2024, total revenues were $387.2 million, a decrease of 6% year-over-year from $411.8 million in Q4 2023 [36] - Residential data revenues decreased by 5.4%, while business data revenues increased by 2.3% year-over-year [37] - Net loss was $105.2 million for Q4 2024 compared to a net income of $103.5 million in Q4 2023, primarily due to non-cash charges related to MBI investments [39] - Adjusted EBITDA was $211 million, a decrease of 7% compared to the prior year quarter, with an adjusted EBITDA margin of 54.5% [41] - For the full year 2024, total revenues were $1.58 billion, a decrease of 5.9% from 2023 [43] - Net income for 2024 was $14.5 million compared to $224.6 million for 2023, impacted by non-cash losses associated with MBI [47] Business Line Data and Key Metrics Changes - Residential data PSUs decreased by 5,500 during 2024, including approximately 10,000 ACP customers who disconnected due to the program ending [43] - Business data revenue increased by 2.6%, driven by a gain of over 1,400 PSUs and strong demand from high-value carrier, wholesale, and enterprise customers [45] - ARPU for residential data customers was $80.39 for 2024, a decrease of 4.9% from 2023, but stabilized during the second half of the year due to various initiatives [44] Market Data and Key Metrics Changes - The company reported that new competition from third-party overbuilders is moderating in its markets, with incumbent LECs continuing to overbuild with new fiber deployments [17] - The overlap of fiber networks in the company's footprint is estimated to be in the high 40% range, primarily driven by incumbent telcos [116] Company Strategy and Development Direction - The company is executing a phased plan for long-term growth, focusing on broadband revenue and cash flow [8][10] - Strategic initiatives include migrating acquired operations to a unified billing system and enhancing customer experience through intelligent Wi-Fi and cybersecurity solutions [26][31] - The company aims to leverage its network capabilities to differentiate itself in a competitive landscape, focusing on customer experience and operational efficiencies [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of business data services and the ability to navigate competitive dynamics effectively [16][18] - The company anticipates that the foundational actions taken in 2024 will lead to smart, balanced, and sustainable growth in 2025 [34][58] - Management acknowledged unique headwinds in Q4 2024 but remains optimistic about future customer acquisition and revenue growth [120] Other Important Information - The company has made significant investments in its network infrastructure, which are expected to trend towards lower capital expenditures in 2025 [49] - The company distributed $67.9 million in dividends to shareholders and repaid $238.1 million of debt in 2024 [52] Q&A Session Summary Question: Update on MBI call option and capital markets - Management discussed the flexibility gained from the strategic amendment to the MBI partnership, which enhances liquidity and capital structure [65][66] Question: Future ARPU trends - Management indicated that various strategies will be employed to grow units and expand ARPU, with a focus on market-specific approaches [70][72] Question: Churn and subscriber results - Management clarified that churn was actually the second lowest in the last three years, despite some unique headwinds affecting performance [94] Question: Fiber overlap and competitive dynamics - Management noted that the competitive landscape is evolving, with less independent overbuilding and a focus on defending market share [106][110] Question: Market share differential in overlap markets - Management indicated that typically, after a period of overlap, they start to see growth again in those markets [125]

Financial Performance - In 2024, Adjusted EBITDA margins for residential data and business data were approximately three and four times greater than for residential video, with programming costs and retransmission fees representing 59% to 64% of total residential video revenues over the past three years [21][22]. - Residential data services accounted for 14% of total revenues in 2024, with significant growth in customer base and average monthly revenue per unit (ARPU) expected to continue due to upgrades in broadband capacity and demand for higher speeds [23]. - Residential data and business data services represented 73.1% of total revenues in 2024, up from 71.6% in 2023 and 67.0% in 2022 [58]. - Business data revenues increased by $5.8 million, or 2.6%, in 2024 compared to 2023 [59]. - Residential data services accounted for 58.6% of total revenues in 2024, up from 54.8% in 2022 [63]. - Business services represented 19.0% of total revenues in 2024, an increase from 17.9% in 2022 [64]. - Residential video services contributed 14.1% of total revenues in 2024, down from 19.1% in 2022 [68]. - The company’s residential video customers declined by 20.0% from 2024 compared to 2023 [57]. - The company anticipates that future increases in programming costs and retransmission fees may further decrease residential video margins and impact revenue growth [170]. Infrastructure and Investment - The company has invested approximately 61% of total capital expenditures since 2017 in infrastructure improvements to drive revenue and Adjusted EBITDA expansion, including the rollout of multi-Gigabit download data service to over 40% of markets [25][26]. - The company plans to continue investing in infrastructure improvements and expanding high-speed data services in existing and newly acquired markets to meet customer needs and remain competitive [26]. - The company has invested over $1 billion over the last three years to enhance broadband capacity and reliability [47]. - The company began deploying DOCSIS 4.0 in the fourth quarter of 2024, which will further increase network capacity and support growing data usage by customers [30]. - The company plans to expand multi-Gigabit download service offerings in over 40% of its markets [63]. Competition and Market Position - The company faces increasing competition from wireless providers and municipalities constructing their own data networks [71][72]. - Approximately 60% of the company's footprint has been overbuilt by wired competitors offering high-speed data services with speeds of 100 Mbps or higher as of December 31, 2024, leading to increased competition [159]. - The company faces significant competition from various service providers, including well-capitalized entrants in the video and data services industry, which could reduce market share and profits [158]. - The company is experiencing increased costs related to compliance with FCC regulations, including those for customer proprietary network information and disability access requirements [147][148]. Regulatory Environment - The Affordable Connectivity Program (ACP) funding has been depleted, ending effective June 1, 2024, with uncertain future funding from Congress [109]. - The FCC's 2024 Open Internet Order was overturned by the U.S. Court of Appeals for the Sixth Circuit, reinstating broadband internet access service as an information service [102]. - Compliance with new broadband internet access service regulations could incur additional costs for Cable One, impacting operations [104]. - The FCC's new broadband label requirements took effect on April 10, 2024, requiring additional consumer disclosure [108]. - The FCC has proposed new rules regarding outage reporting and customer support quality for broadband services, which may affect operations [106]. - The FCC's regulations prohibit local authorities from regulating rates for cable systems under effective competition, impacting pricing strategies [120]. - The FCC's recent review of media ownership rules retained existing rules, potentially increasing costs for retransmission consent negotiations [129]. - The FCC's new reporting requirement for cable operators regarding television station blackouts is expected to take effect in early to mid-2025, which may affect operations [128]. Strategic Focus and Acquisitions - The company intends to de-emphasize its residential video business due to escalating programming costs and competition from streaming services, while focusing on higher-margin residential and business data services [29]. - The company has made several acquisitions since its spin-off, including the acquisition of Hargray for approximately $2.0 billion, which enhances its market presence and service offerings [32]. - The company has invested a combined $634.9 million in broadband-centric providers serving non-urban markets to capitalize on growth opportunities and potential future acquisitions [35]. - The company completed the Hargray Acquisition on May 3, 2021, but may not realize anticipated business opportunities and growth prospects from this integration [172]. - The company has made several acquisitions since 2017, including NewWave, Clearwave, Fidelity, and CableAmerica, which expose it to risks and uncertainties associated with such transactions [173]. Operational Challenges - A material weakness in internal control over financial reporting was identified as of December 31, 2023, which could lead to significant expenses and affect the accuracy of financial reporting [184]. - The implementation of a unified billing system began in 2024, requiring significant investments and potentially diverting management's attention from ongoing operations [177]. - Cybersecurity incidents pose increasing risks to the company's network and information systems, which are critical for providing services [178]. - The company relies on a limited number of third-party suppliers for necessary hardware and software, which could adversely affect its operations if these suppliers fail to perform [171]. - The company faces risks related to integrating new strategic acquisitions, including potential loss of key associates and challenges in achieving anticipated benefits [174]. Financial Risks - The company has substantial indebtedness of approximately $1.73 billion in term loans and $313 million in revolving credit borrowings, which may limit financial flexibility [206]. - The company is exposed to interest rate risk due to variable rate indebtedness, which could increase debt service obligations if interest rates rise [206]. - The company’s ability to refinance its indebtedness will depend on future cash generation from operations, which is subject to various external factors [203]. - The company may face risks from rising interest rates due to reliance on short-term or variable-rate borrowings, potentially impacting financial condition and cash flows [207]. - The inability to raise necessary funds for repurchasing or settling convertible notes could lead to defaults under existing agreements [208]. - The conditional conversion feature of convertible notes may adversely affect liquidity and financial condition if triggered [210]. - Conversion of convertible notes could dilute existing stockholders' ownership and depress common stock prices [211]. - The company cannot assure continued payment of dividends due to existing indebtedness and financial condition [212]. Market Demand and Economic Conditions - Adverse economic conditions in the U.S. could negatively impact demand for products and services, affecting overall business performance [216]. - Future demand for residential and business data services may be lower than expected, impacting growth projections [218]. - Stock price volatility may be influenced by various factors, including trading volume and market fluctuations unrelated to company performance [219]. - The company’s ability to gain new customers is influenced by economic conditions affecting housing and consumer behavior [216].

[Financial & Operational Performance](index=1&type=section&id=Financial%20%26%20Operational%20Performance) Cable One's 2024 financial performance saw revenue and net income declines, primarily due to non-cash MBI charges and ACP expiration, partially mitigated by reduced capital expenditures and stabilized residential data ARPU [Q4 & Full Year 2024 Performance Summary](index=1&type=section&id=Q4%20%26%20Full%20Year%202024%20Performance%20Summary) In 2024, Cable One's revenue declined 5.9% to $1.58 billion, and net income fell sharply by 93.6% to $14.5 million, primarily due to non-cash charges related to its MBI investment. Despite lower revenue and profit, Adjusted EBITDA less capital expenditures grew by 4.0%, supported by a significant 22.8% reduction in capital spending. The company also took steps to improve its financial flexibility by increasing its revolving credit facility and amending its agreement with MBI Full Year 2024 vs. 2023 Financial Highlights | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,579.5 million | $1,678.1 million | (5.9)% | | Net Income | $14.5 million | $224.6 million | (93.6)% | | Adjusted EBITDA | $854.0 million | $916.9 million | (6.9)% | | Capital Expenditures | $286.4 million | $371.0 million | (22.8)% | | Adjusted EBITDA less Capital Expenditures | $567.6 million | $545.9 million | 4.0% | Q4 2024 vs. Q4 2023 Financial Highlights | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $387.2 million | $411.8 million | (6.0)% | | Net Income (Loss) | ($105.2 million) | $103.5 million | (201.7)% | | Adjusted EBITDA | $211.0 million | $226.9 million | (7.0)% | | Capital Expenditures | $71.9 million | $115.6 million | (37.8)% | | Adjusted EBITDA less Capital Expenditures | $139.1 million | $111.3 million | 25.0% | - CEO Julie Laulis noted that residential data ARPU stabilized in the second half of 2024. Excluding the effects of the Affordable Connectivity Program (ACP) expiration and a small acquisition, the residential data customer base grew by approximately **2,200 subscribers** for the year[2](index=2&type=chunk) - In October 2024, the company increased its revolving credit facility borrowing capacity by **$250.0 million**, bringing the total to **$1.25 billion**[3](index=3&type=chunk) - The company amended its agreement with MBI in December 2024, deferring a put option and creating a new call option, which is expected to improve balance sheet flexibility and future leverage levels[4](index=4&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) The company's financial performance was significantly impacted by non-cash charges related to its MBI investment. Both quarterly and full-year results show revenue declines driven by lower residential data ARPU and subscriber losses following the ACP expiration, while business data revenue provided a partial offset with modest growth [Q4 2024 vs. Q4 2023 Analysis](index=3&type=section&id=Fourth%20Quarter%202024%20Financial%20Results%20Compared%20to%20Fourth%20Quarter%202023) Q4 2024 revenue fell 6.0% YoY to $387.2 million, led by a 5.4% drop in residential data revenue due to lower ARPU and subscriber losses from the ACP expiration. The company recorded a net loss of $105.2 million, a significant reversal from the $103.5 million net income in Q4 2023. This loss was primarily driven by a $195.7 million unfavorable non-cash fair value adjustment and a $111.7 million impairment charge related to the MBI investment - Q4 residential data revenues decreased **5.4% YoY**, primarily due to a **5.0% decrease in ARPU** from targeted pricing and a reduction in subscribers driven by the expiration of the ACP[7](index=7&type=chunk) - Q4 business data revenues increased **2.3% YoY**, mainly due to an increase in subscribers[7](index=7&type=chunk) - The significant net loss was primarily caused by a **$195.7 million unfavorable change** in the fair value of MBI options and a **$111.7 million non-cash impairment** of the MBI investment, partially offset by a **$71.5 million gain** on the MBI Amendment[8](index=8&type=chunk) - Adjusted EBITDA for Q4 2024 was **$211.0 million**, a decrease from **$226.9 million** in Q4 2023, with the margin slightly contracting to **54.5%**[9](index=9&type=chunk) [Full Year 2024 vs. Full Year 2023 Analysis](index=3&type=section&id=Full%20Year%202024%20Financial%20Results%20Compared%20to%20Full%20Year%202023) For the full year 2024, revenue decreased 5.9% to $1.58 billion. Residential data revenue fell 5.5% due to a 4.9% ARPU decline and ACP-related subscriber losses. Net income plummeted 93.6% to $14.5 million, heavily impacted by a $174.2 million unfavorable non-cash fair value adjustment and a $111.7 million impairment charge concerning the MBI investment - Full-year residential data revenue decreased **5.5%** due to a **4.9% decline in ARPU** and subscriber losses from the ACP expiration[11](index=11&type=chunk) - Full-year business data revenue grew **2.6%** due to an increase in subscribers[11](index=11&type=chunk) - The substantial decrease in net income was primarily due to a **$174.2 million unfavorable change** in the fair value of MBI options and a **$111.7 million non-cash impairment** of the MBI investment[12](index=12&type=chunk) - Adjusted EBITDA for the full year 2024 was **$854.0 million**, down from **$916.9 million** in 2023[13](index=13&type=chunk) [Key Operating Statistics](index=16&type=section&id=OPERATING%20STATISTICS) As of year-end 2024, total customers slightly decreased by 0.7% to 1.09 million. The company saw a significant 20.0% decline in residential video subscribers, while residential data subscribers fell by a modest 0.6%. Q4 residential data ARPU was $79.72, down 5.0% YoY, whereas residential video ARPU increased 7.4% to $154.44, likely due to rate adjustments Customer and Primary Service Units (PSUs) as of Dec 31 | Metric | 2024 (thousands) | 2023 (thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Customers | 1,088.8 | 1,097.0 | (0.7)% | | Residential Data PSUs | 955.0 | 960.5 | (0.6)% | | Residential Video PSUs | 107.4 | 134.2 | (20.0)% | | Business Data PSUs | 100.2 | 98.8 | 1.4% | Average Revenue Per Unit (ARPU) - Q4 | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Residential Data | $79.72 | $83.95 | (5.0)% | | Residential Video | $154.44 | $143.78 | 7.4% | | Business Services | $236.84 | $246.35 | (3.9)% | - Total passings (homes and businesses the company's network can serve) increased by **2.4%** to over **2.84 million**[51](index=51&type=chunk) - Data penetration (Data PSUs as a percentage of passings) decreased from **38.2%** in 2023 to **37.1%** in 2024[51](index=51&type=chunk) [Financial Position & Capital Management](index=4&type=section&id=Financial%20Position%20%26%20Capital%20Management) The company managed its financial position by reducing total debt and significantly cutting capital expenditures, while enhancing liquidity through an increased revolving credit facility [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended 2024 with $153.6 million in cash, a decrease from $190.3 million at the end of 2023. Total debt was slightly reduced to $3.62 billion. Key capital management activities included increasing the Revolver capacity to $1.25 billion, paying $67.9 million in dividends, and managing revolver borrowings in connection with the MBI Amendment Liquidity and Debt Position (as of Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $153.6 million | $190.3 million | | Total debt | $3.62 billion | $3.68 billion | - The company increased its Revolver capacity by **$250.0 million** to **$1.25 billion** and had **$937.0 million** available for borrowing at year-end[16](index=16&type=chunk) - A total of **$67.9 million** in dividends were paid to stockholders during 2024[16](index=16&type=chunk) [Capital Expenditures](index=4&type=section&id=Capital%20Expenditures) Total capital expenditures were significantly reduced by 22.8% to $286.4 million in 2024 from $371.0 million in 2023. The most substantial spending cuts were in scalable infrastructure (down 42.1%), upgrade/rebuild (down 50.0%), and commercial projects (down 46.0%), indicating a shift towards more disciplined capital allocation Capital Expenditures by Category (Full Year) | Category | 2024 (in thousands) | 2023 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Customer premise equipment | $59,876 | $62,066 | (3.5)% | | Commercial | $20,996 | $38,893 | (46.0)% | | Scalable infrastructure | $31,334 | $54,097 | (42.1)% | | Line extensions | $61,326 | $51,466 | 19.2% | | Upgrade/rebuild | $30,486 | $60,898 | (50.0)% | | Support capital | $82,336 | $103,608 | (20.5)% | | **Total** | **$286,354** | **$371,028** | **(22.8)%** | - Capital expenditures for Q4 2024 totaled **$71.9 million**, a **37.8% decrease** compared to **$115.6 million** in Q4 2023[17](index=17&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements reveal a significant net loss in Q4 2024 and a sharp decline in full-year net income, primarily due to revenue decreases and substantial non-cash MBI-related charges, alongside stable operating cash flow and a slightly reduced asset base [Statements of Operations (Income Statement)](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME) The company reported a net loss of $105.2 million for Q4 2024, a sharp decline from a $103.5 million net income in Q4 2023. For the full year, net income was $14.5 million, down 93.6% from $224.6 million in 2023. The decline was driven by a 5.9% drop in annual revenue to $1.58 billion and significant other expenses, including non-cash charges related to the MBI investment Full Year 2024 vs. 2023 Statement of Operations Highlights | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenues | $1,579,542 | $1,678,081 | | Income from operations | $441,879 | $526,903 | | Net income | $14,480 | $224,622 | | Diluted EPS | $3.43 | $38.08 | Q4 2024 vs. Q4 2023 Statement of Operations Highlights | (in thousands) | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Total Revenues | $387,213 | $411,815 | | Income from operations | $101,581 | $127,229 | | Net income (loss) | $(105,238) | $103,496 | | Diluted EPS | $(18.71) | $17.44 | [Balance Sheets](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of December 31, 2024, total assets stood at $6.53 billion, a slight decrease from $6.76 billion in the prior year, mainly due to a reduction in equity investments. Total liabilities decreased to $4.73 billion from $4.95 billion, driven by lower long-term debt and other noncurrent liabilities. Total stockholders' equity remained stable at approximately $1.80 billion Balance Sheet Summary (as of Dec 31) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total Current Assets | $279,235 | $342,378 | | Total Assets | $6,525,895 | $6,759,510 | | Total Current Liabilities | $213,872 | $202,837 | | Total Liabilities | $4,729,863 | $4,950,240 | | Total Stockholders' Equity | $1,796,032 | $1,809,270 | [Statements of Cash Flows](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For 2024, net cash provided by operating activities remained stable at $664.1 million. Net cash used in investing activities increased significantly to $564.4 million from $341.9 million in 2023, primarily due to a $295.2 million payment for the MBI Amendment. Net cash used in financing activities decreased to $136.3 million, reflecting lower debt repayments and the absence of stock repurchases compared to the prior year Cash Flow Summary (Full Year) | (in thousands) | 2024 | 2023 | | :--- | :--- | | Net cash provided by operating activities | $664,128 | $663,170 | | Net cash used in investing activities | $(564,445) | $(341,904) | | Net cash provided by (used in) financing activities | $(136,341) | $(346,127) | | Change in cash and cash equivalents | $(36,658) | $(24,861) | [Supplementary Information](index=5&type=section&id=Supplementary%20Information) This section details reconciliations for non-GAAP financial measures, highlights key forward-looking statements and associated risks, and provides essential corporate information about Cable One's operations [Non-GAAP Financial Measures Reconciliation](index=13&type=section&id=RECONCILIATIONS%20OF%20NON-GAAP%20MEASURES) The company utilizes non-GAAP measures such as Adjusted EBITDA and Adjusted EBITDA less capital expenditures to evaluate performance. For the full year 2024, Adjusted EBITDA was $854.0 million, reconciled from a net income of $14.5 million by adding back items like interest, taxes, depreciation & amortization, and significant non-cash charges, including a $204.5 million equity method investment loss - The company defines "Adjusted EBITDA" as net income adjusted for interest, taxes, depreciation, amortization, equity-based compensation, and other special items to eliminate the impact of non-cash expenses and capital structure[22](index=22&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Full Year 2024) | (in thousands) | Amount | | :--- | :--- | | Net income | $14,480 | | Plus: Interest expense, net | $137,997 | | Plus: Income tax provision | $25,201 | | Plus: Depreciation and amortization | $341,754 | | Plus: Equity method investment loss, net | $204,496 | | Plus: Other adjustments | $129,562 | | **Adjusted EBITDA** | **$853,986** | Reconciliation of Net Cash from Operations to Adjusted EBITDA less Capital Expenditures (Full Year 2024) | (in thousands) | Amount | | :--- | :--- | | Net cash provided by operating activities | $664,128 | | Less: Capital expenditures | $(286,354) | | Plus/Less: Adjustments for interest, taxes, working capital, etc. | $189,858 | | **Adjusted EBITDA less capital expenditures** | **$567,632** | [Forward-Looking Statements & Risk Factors](index=7&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements that are subject to numerous risks and uncertainties. The company highlights key risks including rising competition, the ability to adapt to technological changes, risks associated with acquisitions (particularly the MBI investment), potential for security breaches, and adverse economic conditions - Key risk factors identified by the company include: - Rising levels of competition - Changes in technology and ability to deploy new services - Risks related to acquisitions and strategic investments, including the MBI options - Integrity and security of network and information systems - Adverse economic conditions and inflation[32](index=32&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) Cable One, operating under the Sparklight® brand among others, is a major broadband communications provider serving over 1 million residential and business customers across 24 states. The company has scheduled a conference call for February 27, 2025, to discuss the fourth quarter and full-year 2024 results with the financial community - Cable One is a leading broadband provider serving more than **1 million customers** in **24 states**[29](index=29&type=chunk) - The company will host a conference call to discuss Q4 and full-year 2024 results on Thursday, February 27, 2025, at **5 p.m. Eastern Time**[18](index=18&type=chunk)

Core Viewpoint - Analysts forecast that Cable One (CABO) will report a quarterly earnings per share (EPS) of $9.91, reflecting a year-over-year decline of 7% and revenues of $390.46 million, which is a 5.2% decrease compared to the previous year [1]. Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the past 30 days, indicating that analysts have not changed their initial projections during this period [2]. - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, as empirical research shows a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenues- Residential Video' to reach $51.07 million, indicating a year-over-year decline of 13.8% [5]. - The estimated 'Revenues- Residential Data' is $229.27 million, reflecting a decrease of 5.4% from the year-ago quarter [5]. - The consensus estimate for 'Revenues- Other' stands at $27.15 million, showing an increase of 6.1% from the previous year [5]. - The combined estimate for 'Revenues- Business services (Business data + Business other)' is projected at $75.42 million, indicating a slight decline of 0.6% from the prior year [6]. - The average prediction for 'Revenues- Residential Voice' is $7.55 million, reflecting a year-over-year decline of 13.8% [6]. Stock Performance - Shares of Cable One have decreased by 17.7% in the past month, contrasting with a 1.8% decline in the Zacks S&P 500 composite [7]. - With a Zacks Rank of 5 (Strong Sell), Cable One is expected to underperform the overall market in the near future [7].

Wall Street expects a year-over-year decline in earnings on lower revenues when Cable One (CABO) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 27. O ...