Cable One(US:CABO)2025-11-06 22:59Customer Base and Revenue - As of September 30, 2025, the company served approximately 1.0 million residential and business customers out of 2.9 million passings, with 60.0% of revenues generated from residential data services[116] - For the three months ended September 30, 2025, revenues decreased by 4.5% to $376,012,000 compared to $393,555,000 in the same period of 2024[125] - Total revenues for the three months ended September 30, 2025, were $376.0 million, a decrease of $17.5 million or 4.5% compared to $393.6 million in 2024[132] - For the nine months ended September 30, 2025, total revenues were $1.14 billion, a decrease of $54.6 million or 4.6% from $1.19 billion in 2024[146] - Total revenues for MBI for the twelve months ended September 30, 2025, were approximately $310 million, with around 210,000 residential and business data customers[169] Net Income and Expenses - The company experienced a net income increase of 95.7%, reaching $86,532,000 for the three months ended September 30, 2025, compared to $44,215,000 in 2024[125] - Net income for the three months ended September 30, 2025, was $86.5 million, compared to $44.2 million in 2024[144] - Net loss for the nine months ended September 30, 2025, was $348.8 million, a significant decline from net income of $119.7 million for the same period in 2024, primarily due to non-cash asset impairments totaling $456.2 million[157] - Adjusted EBITDA for the nine months ended September 30, 2025, was $607.8 million, down 5.5% from $643.0 million in 2024[164] - Operating expenses (excluding depreciation and amortization) were $96.0 million, a decrease of $8.6 million or 8.2% compared to the prior year, with operating expenses as a percentage of revenues at 25.5%[137] - Selling, general and administrative expenses increased by $12.4 million, or 14.0%, totaling $100.8 million, with expenses as a percentage of revenues rising to 26.8%[138] Customer Metrics - Residential data PSUs decreased by 5.1% to 910,400 as of September 30, 2025, while residential video PSUs declined by 20.0% to 89,600[126] - The total number of customer relationships decreased by 4.4% to 1,042,300 as of September 30, 2025, compared to 1,089,800 in 2024[126] - Residential data service revenues decreased by $2.8 million, or 1.2%, primarily due to a decrease in residential data subscribers, despite a 3.2% increase in ARPU[132][133] - Residential video service revenues decreased by $8.7 million, or 16.2%, due to a decrease in residential video subscribers, partially offset by a rate adjustment[133] - Business data revenues increased by $0.2 million, or 0.4%, driven by growth in the fiber and carrier segments[134] Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, were $71,765,000, a decrease of 6.8% from $76,970,000 in 2024[125] - Capital expenditures for the nine months ended September 30, 2025, totaled $211.3 million, with significant investments in customer premise equipment and scalable infrastructure[189] - The company has rolled out multi-Gigabit download data service to over 40% of its markets, enhancing network capacity and supporting future growth[120] Debt and Financing - The company authorized up to $450.0 million for share repurchases, with $143.1 million remaining as of September 30, 2025, and has repurchased 646,244 shares at a total cost of $556.9 million since going public in 2015[174] - The company suspended its quarterly cash dividend on common shares, resulting in annual savings of approximately $67 million, totaling over $200 million in the next three years, to be allocated for debt repayment and organic growth initiatives[175] - As of September 30, 2025, the company had $55.0 million in borrowings under the Revolving Credit Facility at an interest rate of 6.0%, with $1.195 billion available for borrowing[179] - The company repaid $173.0 million and $258.0 million of outstanding borrowings under the Revolving Credit Facility during the three and nine months ended September 30, 2025, respectively[179] - The company completed a $650.0 million offering of Senior Notes due 2030, bearing interest at 4.00% per annum, with semiannual payments starting May 15, 2021[180] Asset Impairments - Asset impairments totaled $586.0 million for the nine months ended September 30, 2025, primarily related to indefinite-lived franchise agreements and goodwill[152] - As of June 30, 2025, the company recorded a non-cash impairment charge of $497.2 million for its indefinite-lived franchise agreements intangible asset, with a carrying value of $2.1 billion[196] - The company also recognized a non-cash goodwill impairment charge of $88.8 million, with the implied fair value of goodwill falling below its carrying value of $929.6 million[197] - No additional impairments were identified during the third quarter of 2025, but future impairments may occur if cash flows decline or discount rates increase[198] Cash Flow and Liquidity - Net cash provided by operating activities decreased by 15.9% to $417.8 million for the nine months ended September 30, 2025, compared to $496.5 million in 2024[171] - Cash and cash equivalents at the end of the period were $166.6 million, down 26.5% from $226.6 million at the end of September 2024[171] - The company experienced a $108.2 million year-over-year increase in net cash used in financing activities, primarily due to a $142.1 million increase in debt repayments[173] Interest and Tax - Interest expense, net, for the nine months ended September 30, 2025, was $100.4 million, a decrease of $4.6 million or 4.4% compared to the previous year[153] - Income tax benefit for the nine months ended September 30, 2025, was $91.6 million, while the provision for 2024 was $47.5 million, resulting in effective tax rates of (26.9)% and 20.4%, respectively[155] Market and Risk Assessment - The decline in fair value of the franchise agreements was attributed to increased competition and a higher discount rate[196] - Market risk disclosures remain unchanged from the 2024 Form 10-K, with no material changes noted[200]