Cable One, Inc. (NYSE:CABO) Q2 2024 Results Conference Call August 1, 2024 5:00 PM ET Company Participants Jordan Morkert - Vice President-Investor Relations Julia Laulis - Chief Executive Officer Todd Koetje - Chief Financial Officer Conference Call Participants Greg Williams - TD Cowen Sebastiano Petti - JPMorgan Frank Louthan - Raymond James Kohulan Paramaguru - BNP Paribas Craig Moffett - MoffettNathanson Brandon Nispel - KeyBanc Capital Markets Operator Hello, and thank you for standing by. My name is ...

For the quarter ended June 2024, Cable One (CABO) reported revenue of $394.46 million, down 7% over the same period last year. EPS came in at $8.16, compared to $10.43 in the year-ago quarter. The reported revenue represents a surprise of -1.69% over the Zacks Consensus Estimate of $401.23 million. With the consensus EPS estimate being $10.36, the EPS surprise was -21.24%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Cable One (CABO) came out with quarterly earnings of $8.16 per share, missing the Zacks Consensus Estimate of $10.36 per share. This compares to earnings of $10.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -21.24%. A quarter ago, it was expected that this telecommunications company would post earnings of $10.78 per share when it actually produced earnings of $8.11, delivering a surprise of -24.77%. Over the last four qu ...

Revenue Performance - For the first six months of 2024, total revenues decreased by 7.0% to $394.461 million compared to $424.024 million in 2023[111] - Total revenues for the three months ended June 30, 2024, were $394.5 million, a decrease of $29.6 million or 7.0% compared to $424.0 million for the same period in 2023[120] - Total revenues for the six months ended June 30, 2024, were $798.8 million, a decrease of $47.1 million or 5.6% compared to $845.9 million for the same period in 2023[129] Customer Metrics - Approximately 1,063,000 customers subscribed to data services, with a significant focus on growing higher-margin residential and business data services[98][100] - Total residential PSUs decreased by 39.3 thousand, or 3.3%, from 1,193.9 thousand in June 2023 to 1,154.7 thousand in June 2024[120] - Total customer relationships decreased by 5.3 thousand, or 0.5%, from 1,101.0 thousand in June 2023 to 1,095.7 thousand in June 2024[120] Income and Profitability - The company experienced a decline in net income by 13.8%, from $55.246 million in 2023 to $47.649 million in 2024[111] - Net income for the three months ended June 30, 2024, was $47.6 million, down from $55.2 million in the same period in 2023[127] - Net income for the six months ended June 30, 2024, was $95.0 million, down from $112.7 million in 2023[137] Expenses and Cost Management - Operating expenses (excluding depreciation and amortization) were $105.8 million, a decrease of $7.0 million, or 6.2%, compared to the same period in 2023[123] - Operating expenses (excluding depreciation and amortization) were $212.4 million, a decrease of $12.6 million or 5.6% compared to the prior year[131] - Selling, general and administrative expenses increased by $4.6 million, or 5.3%, to $90.8 million for the three months ended June 30, 2024[124] EBITDA - Adjusted EBITDA for the first half of 2024 was $212.372 million, reflecting an 8.2% decrease from $231.294 million in the same period of 2023[111] - Adjusted EBITDA for the six months ended June 30, 2024, was $212.4 million, a decrease of $18.9 million or 8.2% compared to $231.3 million in 2023[143] Capital Expenditures - Capital expenditures decreased by 12.2% to $71.592 million in 2024, down from $81.507 million in 2023[111] - Capital expenditures for the six months ended June 30, 2024, totaled $137.5 million, a decrease from $177.6 million in the same period of 2023[166] Debt and Financing - The company amended its Credit Agreement to increase the Revolving Credit Facility by $500 million to $1 billion and extended its maturity to February 2028[154] - As of June 30, 2024, the company had approximately $1.76 billion in outstanding term loans and $238 million in borrowings under the Revolving Credit Facility[157] - The company completed an offering of $650 million in Senior Notes due 2030, bearing interest at 4.00% per annum[158] Shareholder Returns - A quarterly dividend of $2.95 per share was approved, resulting in a total distribution of $17.1 million during the second quarter of 2024[152] - The company had $143.1 million remaining under the share repurchase authorization as of June 30, 2024, with a total of 646,244 shares repurchased at an aggregate cost of $556.9 million since going public[151]

Exhibit 99.1 Cable One Reports Second Quarter 2024 Results August 1, 2024 – PHOENIX – (BUSINESS WIRE) – Cable One, Inc. (NYSE: CABO) (the "Company" or "Cable One") today reported financial and operating results for the quarter ended June 30, 2024. Three Months Ended June 30, | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------|-------|------------------|-------|------------------|-------|-------------------------|---------------------| | (dollars in thou ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 1. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $401.23 million, down 5.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.07% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reass ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2024 were $404.3 million, down from $421.9 million in Q1 2023, primarily due to losses in video subscribers [50] - Net income decreased to $47.3 million in Q1 2024 from $57.4 million in Q1 2023, with the prior year benefiting from a non-cash gain [30] - Adjusted EBITDA for Q1 2024 was $217.1 million, representing a 53.7% margin compared to $228.8 million and a 54.2% margin in the prior year [30] - Adjusted EBITDA less capital expenditures increased by $18.5 million or 13.9% to $151.2 million in Q1 2024 [11] Business Line Data and Key Metrics Changes - Residential data revenues decreased by $6.9 million or 2.8% year-over-year, driven by a 2.7% decrease in average revenue per unit [29] - Business data revenues grew by over $2 million or 3.7% compared to Q1 2023 [68] - Selling, general and administrative expenses increased to $90.4 million in Q1 2024 from $86.7 million in the prior year, with SG&A as a percentage of revenue rising to 22.4% [51] Market Data and Key Metrics Changes - The company added approximately 6,900 new residential subscribers sequentially, marking eight consecutive months of growth [24] - The aggregate fourth quarter annualized 2023 adjusted EBITDA of select companies in the investment portfolio was $613 million, representing a 24% growth compared to the previous year [7] Company Strategy and Development Direction - The company is focusing on enhancing network infrastructure and capitalizing on organic growth opportunities while also exploring strategic acquisitions [52] - The strategy includes targeting value-conscious customers and responding aggressively to competition, which has led to increased customer connects and reduced churn [46][24] - Investments of over $1 billion in network infrastructure over the last three years are aimed at exceeding customer needs for reliability and performance [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory moving forward despite ARPU declines, anticipating improvements as promotional pricing rolls off [65][82] - The company is optimistic about sustaining momentum in residential broadband customer growth and generating strong free cash flow [49] - Management acknowledged the competitive pressures but highlighted the effectiveness of their strategies in maintaining customer satisfaction and growth [24][46] Other Important Information - The company distributed $16.8 million in dividends and repaid $54.8 million of debt in Q1 2024 [31] - Capital expenditures for Q1 were $65.9 million, significantly lower than the previous year, with expectations to keep total CapEx below $300 million for the year [69] Q&A Session Summary Question: What is the outlook for ARPU declines? - Management indicated that ARPU declines are expected to ameliorate as promotional pricing rolls off and customer upgrades occur [65][82] Question: How are subscriber trends developing? - Subscriber growth is attributed to increased connects and reduced churn, with significant growth in competitive markets [93][24] Question: What are the implications of the new strategy on ARPU? - The new strategy targeting value-conscious customers has led to lower initial ARPU, but management believes these customers will be long-term value-accretive [105][106] Question: When will residential revenues stabilize? - Management did not provide specific guidance but expressed confidence that current strategies will lead to positive revenue growth in the future [97][98]

U N C O N S O L I D A T E D I N V E S T M E N T S S U M M A R Y ( M AY 2 , 2 0 2 4 ) | --- | --- | --- | --- | --- | |---------|--------------------------------------------------------------------------------|----------------------------|---------------------------------------------------------------|----------------------------------------| | Company | March 31, 2024 Book Value ($mm) | March 31, 2024 % Ownership | Investment Month(s) | $1,331mm (3) | | | | $566 45% | November 2020 | LQA Q4 2023 Revenue | | ...

The Company classified $0.9 million of property, plant and equipment as held for sale as of December 31, 2023. Such assets are included within other noncurrent assets in the condensed consolidated balance sheet. These assets were sold during the three months ended March 31, 2024 for total proceeds of $2.3 million, resulting in the recognition of a $1.4 million gain on the sale. 6. GOODWILL AND INTANGIBLE ASSETS | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

May 2, 2024 – 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, 2024. "The first quarter of 2024 was our second straight quarter of sequential residential data customer growth," said Julie Laulis, Cable One President and CEO. "Our use of targeted pricing and product offerings in certain markets helped contribute to this growth and we believe our revenues will ultimately benefit from such pric ...