Cable One (CABO) came out with quarterly earnings of $10.66 per share, missing the Zacks Consensus Estimate of $12.86 per share. This compares to earnings of $8.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -17.11%. A quarter ago, it was expected that this telecommunications company would post earnings of $13.40 per share when it actually produced earnings of $10.78, delivering a surprise of -19.55%.Over the last four qua ...

Revenue Breakdown - In 2023, residential data services accounted for 58.4% of total revenues, business services for 18.1%, and residential video for 15.4%[79]. - Business services accounted for 18.1% of total revenues in 2023, up from 17.9% in 2022[104]. - Residential video services represented 15.4% of total revenues in 2023, down from 19.1% in 2022[107]. - Residential voice services made up 2.2% of total revenues in 2023, a decline from 2.5% in 2022[108]. Financial Performance - Net income for 2023 was $267.4 million, an increase of $33.3 million or 14.2% compared to $234.1 million in 2022[281]. - Adjusted EBITDA for 2023 was $916.9 million, reflecting a slight increase of $5.1 million or 0.6% from $911.9 million in 2022[278]. - Income tax provision for 2023 was $89.7 million, a decrease of $36.6 million or 29.0% compared to $126.3 million in 2022[268]. - The effective tax rate decreased to 21.8% in 2023 from 33.7% in 2022, primarily due to changes in valuation allowance and state blended rate adjustments[268]. - Other income, net, was $54.6 million for 2023, compared to an expense of $25.9 million in 2022, primarily due to non-cash gains and interest income[297]. Customer and Service Trends - The average residential data customer used 705 Gigabytes of data per month, with nearly 25% using over 1 Terabyte[82]. - Business data customers and revenues have seen significant growth since 2013, with expectations for continued long-term growth[67]. - Residential video services are expected to decline as the company shifts focus to higher-margin businesses, with the introduction of Sparklight® TV as an IPTV service[83]. - Residential data service revenues increased by $44.7 million or 4.8%, driven by increased customer subscriptions to premium tiers and a rate adjustment in Q2 2023[270]. - Residential video service revenues decreased by $67.2 million, or 20.7%, due to a decline in residential video subscribers[298]. - Residential voice service revenues decreased by $6.0 million, or 13.9%, primarily due to a decrease in residential voice subscribers[299]. Capital Expenditures and Investments - Approximately 69% of total capital expenditures since 2017 focused on infrastructure improvements to drive revenue and Adjusted EBITDA expansion[68]. - The company continues to invest in infrastructure to meet customer needs and remain competitive, including expanding high-speed data service in adjacent areas[84]. - The company plans to deploy DOCSIS 4.0 capabilities and new data service offerings to enhance growth in residential and business services[70]. - The company is expanding fiber-to-the-premises technology to additional areas and markets each year[105]. Regulatory and Compliance Issues - The FCC's new broadband label requirements are set to take effect on April 10, 2024, which may incur additional compliance costs for the company[136]. - The FCC adopted rules in November 2023 to prevent digital discrimination in broadband access, effective March 22, 2024, potentially impacting the company's operations[136]. - The company is subject to various federal and state data security laws, which may impose unforeseen costs related to sensitive personal information[138]. - The FCC's regulations allow for an orderly franchise renewal process, but local authorities may require additional commitments from the company[140]. - The FCC has implemented rules to expedite competitive franchise awards, which could enhance competition in the video service marketplace[141]. - The company is required to comply with the Communications Assistance for Law Enforcement Act (CALEA), ensuring law enforcement access for lawful wiretap purposes[204]. Workforce and Diversity - As of December 31, 2023, the company had 2,993 full-time and part-time associates, a decrease from 3,132 associates in 2022[93]. - The average tenure of associates at the company is nearly 11 years, indicating a stable workforce[94]. - The company is committed to diversity and inclusion, with 2,437 participants in various sessions in 2023[117]. - The company completed over 32,000 instructional hours of safety training for associates in 2023[98]. Debt and Financing - The company entered into a new credit agreement, increasing the revolving credit facility by $500.0 million to $1.0 billion and extending its maturity to February 2028[305]. - Net cash provided by operating activities decreased by $74.9 million, or 10.1%, year-over-year, primarily due to increased cash paid for income taxes and interest[300]. - Cash and cash equivalents at the end of the period were $190.3 million, down $24.9 million, or 11.6%, from the previous year[300]. - The company reported a $117.3 million year-over-year decrease in net cash used in financing activities, attributed to net proceeds from long-term debt borrowings[301]. Market Value and Stock - The aggregate market value of the company's common stock held by non-affiliates was approximately $3.7 billion as of June 30, 2023[73]. - The existence of Convertible Notes may dilute existing stockholders' ownership interests and could adversely affect the market price of the company's common stock[207].

Financial Performance - Total revenues for Q4 2023 were $411.8 million, a decrease of $13.7 million or 3.2% compared to Q4 2022[6] - Net income for Q4 2023 was $115.3 million, compared to a net loss of $77.2 million in Q4 2022, resulting in a net profit margin of 28.0%[5][17] - Adjusted EBITDA for Q4 2023 was $226.9 million, down from $233.2 million in Q4 2022, with an Adjusted EBITDA margin of 55.1%[5][18] - For the full year 2023, total revenues were $1.7 billion, a decrease of $28.0 million or 1.6% compared to 2022[11][20] - Net income for 2023 was $267.4 million, an increase of $33.3 million or 14.2% from 2022, with a net profit margin of 15.9%[10][21] - Adjusted EBITDA for 2023 was $916.9 million, slightly up from $911.9 million in 2022, with an Adjusted EBITDA margin of 54.6%[10][22] Revenue Breakdown - Residential data revenues increased by 2.1% year-over-year in Q4 2023, contributing to overall revenue performance[6] - Residential data revenue increased by $44,732 or 4.8% to $979,296, while residential video revenue decreased by $67,234 or 20.7% to $257,966[58] - Residential data average monthly revenue per unit (ARPU) was $83.95 in Q4 2023, an increase of $2.24 or 2.7% from the prior year[7] - Residential video revenue decreased by 21.3% to $59.247 million[51] Expenses and Capital Expenditures - Capital expenditures for Q4 2023 totaled $115.6 million, an increase of 8.2% from $106.8 million in Q4 2022[19] - Operating expenses (excluding depreciation and amortization) decreased by 5.6% to $106.265 million[51] - Capital expenditures decreased to $371,028, down by $43,067 or 10.4% from $414,095 in 2022[72] Customer Metrics - The company serves over 1 million residential and business customers across 24 states[47] - Total residential customers decreased to 994.4 thousand, a decline of 15.8 thousand or 1.6% from 1,010.2 thousand in 2022[75] - Total business customers increased to 102.6 thousand, up by 1.1 thousand or 1.1% from 101.6 thousand in the previous year[75] - The percentage of total non-video customers increased to 86.8%, up from 83.4% in 2022, indicating a growth in non-video service adoption[75] - Video PSUs decreased to 134.2 thousand, down by 37.1 thousand or 21.6% from 171.2 thousand in 2022[75] Debt and Equity - The company repaid $150.0 million under its revolving credit facility during 2023, including $50.0 million in Q4 2023[9][27] - Long-term debt decreased to $3,626,928 from $3,752,591, a reduction of $125,663 or 3.4%[60] - Total stockholders' equity increased to $1,873,145 from $1,757,973, an increase of $115,172 or 6.5%[60] Cash Flow - Net cash provided by operating activities was $151,669 for the three months ended December 31, 2023, down $16,578 or 9.9% from $168,247 in the prior year[67] - The net cash provided by operating activities was $663,170, a decrease of $74,870 or 10.1% from $738,040 in 2022[72] Other Income and Adjustments - The company reported a significant increase in other income, netting $71.994 million compared to a loss of $122.873 million in the previous year[51] - The company reported a significant loss in other income, totaling $(71,994) for the three months ended December 31, 2023, compared to a gain of $122,873 in the same period last year, a change of $(194,867)[67] - Fair value adjustments for the three months ended December 31, 2023, resulted in a gain of $66,591, compared to a loss of $128,420 in the same period last year, a change of $195,011[67] Challenges and Outlook - The company anticipates ongoing challenges from rising competition and technology changes in the broadband communications market[49]

The upcoming report from Cable One (CABO) is expected to reveal quarterly earnings of $12.86 per share, indicating an increase of 43.9% compared to the year-ago period. Analysts forecast revenues of $417.66 million, representing a decrease of 1.9% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company announces its earnings, it ...

Cable One (CABO) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 22, 2024, might help the stock move higher if these key numbers are better than ...

PHOENIX--(BUSINESS WIRE)--Cable One, Inc. (NYSE: CABO) will host a conference call with the financial community to discuss results for the fourth quarter and full year 2023 on Thursday, February 22, 2024, at 5 p.m. Eastern Time (ET). Cable One will issue a press release reporting its results after market close on Thursday, February 22, 2024. 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 1-888-800-3155 (Internation ...

The Zacks Cable Television industry is witnessing a rise in cord-cutting on pay-TV options, including cable TV and satellite TV, due to intensifying competition from over-the-top service providers’ innovative content offerings. Focus on providing bundled offerings and on-demand programming content that cater to changing consumer behavior bodes well for streaming players.Despite stiff competition, Cable Television industry players are benefiting from consistent demand for high-speed broadband. Strong demand ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2023 were $420.3 million, a 1% decrease from $424.7 million in Q3 2022, primarily due to a decline in lower-margin residential and business video revenues [49] - Residential data revenues grew by 5.8% year-over-year, while total business services revenues fell by 0.4% [50] - Adjusted EBITDA was $230 million, an increase of 2.4% year-over-year, with an adjusted EBITDA margin of 54.7%, reflecting a 180 basis point improvement [51] - Operating expenses were $109.7 million, or 26.1% of revenues, down from 28.4% in the prior year, driven by a decrease in video programming and franchise costs [25] - Capital expenditures totaled $77.8 million, a decrease of 22.6% year-over-year, equating to 33.8% of adjusted EBITDA [26] Business Line Data and Key Metrics Changes - Business services revenues fell slightly by 0.4% year-over-year, but connectivity growth outpaced residential broadband revenue [8] - Average customer demand reached an all-time high of 646 gigabytes per month, with over 20% of residential customers exceeding 1 terabyte of usage each month, an 18% increase from the previous year [9] Market Data and Key Metrics Changes - The company has not experienced significant customer churn due to mobile fixed wireless competition, maintaining low overall churn rates [10][35] - The majority of markets do not have a wired competitor offering speeds of 100 megabits or higher, indicating a competitive advantage [20][83] Company Strategy and Development Direction - The company is focusing on increasing broadband penetration and aligning strategies to target both premium and value-conscious customer segments [7][16] - A recent promotion of $25 for 100 megabits aimed at value-focused customers resulted in robust connects, with most opting for higher speed and price tiers [43][36] - The company is committed to digital transformation and integration, enhancing operational efficiencies across its brands [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of broadband penetration and the ability to balance ARPU and subscriber growth [16][57] - The company is actively exploring government funding opportunities to extend its network into underserved areas [47] - Management noted that while competition is increasing, the company has historically adapted well to market changes and remains focused on customer satisfaction [63] Other Important Information - The company had approximately $240 million in cash and cash equivalents as of September 30, with a debt balance of approximately $3.7 billion [28] - Recent leadership changes were made to enhance focus on customer growth and digital transformation [23][48] Q&A Session Summary Question: Discussion on HSD net adds and promotional offers - Management noted that the promotional offer for 100 megabits at $25 was aimed at value-conscious customers, leading to robust connects, with most opting for higher tiers [31][36] Question: Churn from fiber competition - Management indicated that overall churn is at prepandemic lows, even in competitive markets, and they track reasons for customer departures [34][35] Question: Impact of promotional offers on ARPU - Management highlighted that while the $25 offer attracted customers, the majority chose higher-priced tiers, indicating a positive response to premium offerings [66][43] Question: Capital intensity and future investments - Management discussed ongoing capital optimization strategies and the potential for further reductions in capital intensity as they continue to enhance network efficiency [72][90] Question: Customer exposure to ACP program - Management stated that only a small portion of their customer base is involved with the ACP program, indicating minimal exposure and potential impact [74][76]

(2) Not applicable. 42 31.1 Principal Executive Officer Certification required by Rules 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* 101.SCH Inline XBRL Taxonomy Extension Schema Document.* 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.* 43 Cable One, Inc. (Registrant) Date: November 2, 2023 Income tax provision was $63.9 million and $86.2 million for the nine months ended September 30, 2023 and 2022, respectively, and our effective tax rat ...

Cable One, Inc. (NYSE:CABO) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Jordan Morkert - Investor Relations Julie Laulis - President and Chief Executive Officer Todd Koetje - Chief Financial Officer Conference Call Participants Phil Cusick - JPMorgan Frank Louthan - Raymond James Greg Williams - TD Cowen Craig Moffett - MoffettNathanson Steven Cahall - Wells Fargo Brandon Nispel - KeyBanc Capital Markets Operator Good afternoon ladies and gentlemen. Thank you for standing ...