Cable One(US:CABO)2022-08-07 16:14Financial Data and Key Metrics Changes - Total revenues for Q2 2022 were $429.1 million, a 6.8% increase from $401.7 million in Q2 2021 [22] - Adjusted EBITDA increased by 6.7% to $227.5 million, with an adjusted EBITDA margin of 53% [25] - Net income for the quarter was $69.2 million, or $11.11 per share on a fully diluted basis [25] - Operating expenses were $118.4 million, representing 27.6% of revenues, down from 28% in the prior year [23] Business Line Data and Key Metrics Changes - Residential internet service saw a year-over-year customer growth of approximately 41,000, or 4.4% [7] - Business services revenue grew by 7.8% year-over-year, with residential internet revenue growth at 12.4% [22][11] - Residential internet ARPU increased by 2.7% year-over-year [8] Market Data and Key Metrics Changes - Average data usage increased by approximately 16% year-over-year, with peak hour utilization remaining below 22% [13] - The competitive landscape showed that approximately 30% of markets have competitors providing over 100 megabits of speed, a slight increase from the previous quarter [49] Company Strategy and Development Direction - The company is focused on expanding broadband services in underserved rural communities, with recent investments in Visionary Broadband [15] - Continued commitment to digital equity and partnerships with government entities to enhance connectivity [12] - The company is navigating supply chain challenges while maintaining a strong capital investment strategy [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term business fundamentals despite macroeconomic challenges [6] - The company anticipates continued modest growth in residential internet customers and ARPU in the second half of the year [10] - Management remains focused on integration and operational success of recently acquired brands [43] Other Important Information - Capital expenditures for Q2 2022 totaled $107.3 million, equating to 47.2% of adjusted EBITDA [26] - The company distributed $16.4 million in dividends and repurchased approximately 96,000 shares for $122 million during the quarter [27] Q&A Session Summary Question: Fixed wireless availability and competition - Management indicated that fixed wireless competition has not significantly impacted growth, with T-Mobile's share remaining low in their footprint [36][38] Question: Appetite for large transactions - Management refrained from commenting on M&A speculation, focusing instead on integration and operational success of current brands [42][43] Question: Fiber expansion and competitive landscape - Management acknowledged rising costs for fiber deployment and noted that competition is slower to enter their markets due to diverse locations [45][46] Question: Bad debt and consumer behavior - Bad debt increased from last year but remains lower than 2019 levels, indicating a return to normalcy post-pandemic [56] Question: Organic HSD net additions and divestments - Management clarified that the divestment of the Tallahassee portfolio involved only business services, with modest growth observed in the third quarter [59][60]