Cable One(CABO)2025-05-01 22:00Customer 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].