Market Overview

Cable ONE Reports Second Quarter 2018 Results

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Cable One, Inc. (NYSE:CABO) (the "Company" or "Cable ONE") today
reported financial and operating results for the quarter ended June 30,
2018.

Second Quarter 2018 Highlights:

  • Net income was $43.8 million in the second quarter of 2018, an
    increase of 57.2% year-over-year. Adjusted EBITDA(1) was
    $127.1 million, an increase of 12.2% year-over-year. Net profit margin
    was 16.3% and Adjusted EBITDA margin(1) was 47.4%.
  • Net income and Adjusted EBITDA results for the second quarter of 2018
    include a full quarter of NewWave Communications ("NewWave")
    operations, while the comparable results for the second quarter of
    2017 include only two months of NewWave operations. Excluding the
    contributions from NewWave operations, net income would have increased
    57.1% year-over-year to $40.5 million and Adjusted EBITDA would have
    increased 6.2% to $108.4 million year-over-year. In addition, net
    profit margin would have been 18.4% and Adjusted EBITDA margin would
    have been 49.4%.
  • Net cash provided by operating activities was $101.9 million, an
    increase of 93.7% year-over-year. Adjusted EBITDA less capital
    expenditures(1) was $77.3 million, an increase of 6.1%
    compared to the second quarter of 2017.
  • Total revenues were $268.4 million in the second quarter of 2018
    compared to $241.0 million in the second quarter of 2017. Excluding
    the $49.0 million and $32.2 million contributions from NewWave
    operations in the second quarter of 2018 and 2017, respectively, total
    revenues would have been $219.4 million and $208.8 million, an
    increase of 5.1% year-over-year.
  • Residential data revenues increased 18.3% and business services
    revenues increased 18.4% year-over-year. Excluding the contributions
    from NewWave operations, residential data revenues increased 11.1% and
    business services revenues increased 11.3% compared to the second
    quarter of 2017.
  • Common stock repurchases totaled 30,717 shares, or $20.3 million,
    during the second quarter of 2018.

(1) Adjusted EBITDA, Adjusted EBITDA margin and Adjusted
EBITDA less capital expenditures are defined in the section of this
press release entitled "Use of Non-GAAP Financial Measures."
Adjusted EBITDA and Adjusted EBITDA less capital expenditures are
reconciled to net income, Adjusted EBITDA margin is reconciled to net
profit margin and Adjusted EBITDA less capital expenditures is also
reconciled to net cash provided by operating activities. Refer to the "Reconciliations
of Non-GAAP Measures
" tables within this press release.

Second Quarter 2018 Financial Results Compared to Second Quarter
2017

Revenues increased $27.4 million, or 11.4%, to $268.4 million for the
second quarter of 2018 due primarily to the additional month of revenues
attributable to the NewWave operations in the current quarter. For the
second quarter of 2018 and 2017, residential data revenues comprised
45.6% and 42.9% of total revenues and business services revenues
comprised 14.3% and 13.5% of total revenues, respectively. Excluding the
contributions from NewWave operations, revenues increased to $219.4
million, or 5.1%, from $208.8 million in the prior year quarter.

Operating expenses (excluding depreciation and amortization) were $91.8
million in the second quarter of 2018 and increased $7.7 million, or
9.2%, compared to the second quarter of 2017 primarily as a result of
the additional month of NewWave operations. Operating expenses as a
percentage of revenues were 34.2% for the second quarter of 2018
compared to 34.9% for the year-ago quarter. Operating expenses
attributable to the NewWave operations were $23.6 million for the second
quarter of 2018. Excluding the expenses associated with the NewWave
operations, operating expenses would have been $68.1 million in the
second quarter of 2018 compared to $68.0 million in the second quarter
of 2017. Operating expenses as a percentage of revenues, excluding the
impact of the NewWave operations, would have been 31.1% in the second
quarter of 2018 compared to 32.6% in the second quarter of 2017.

Selling, general and administrative expenses were $54.2 million for the
second quarter of 2018 and increased $3.2 million, or 6.3%, compared to
the second quarter of 2017. Selling, general and administrative expenses
as a percentage of revenues were 20.2% and 21.1% for the second quarter
of 2018 and 2017, respectively. Selling, general and administrative
expenses attributable to the NewWave operations were $7.8 million for
the second quarter of 2018, an increase of $3.0 million from the second
quarter of 2017. Excluding the expenses associated with the NewWave
operations, selling, general and administrative expenses would have been
$46.4 million compared to $46.1 million in the prior year quarter.
Increases in marketing expenses and medical insurance expenses were
offset by a decrease in acquisition-related costs. Selling, general and
administrative expenses as a percentage of revenues, excluding the
impact of the NewWave operations, would have been 21.1% in the second
quarter of 2018 and 22.1% in the second quarter of 2017.

Depreciation and amortization expense was $49.0 million for the second
quarter of 2018 and increased $1.0 million, or 2.1%, compared to the
second quarter of 2017. The increase was due primarily to new assets
placed in service since the second quarter of 2017 and the additional
month of depreciation and amortization on property, plant and equipment
and finite-lived intangible assets acquired as part of the NewWave
acquisition, partially offset by assets that became fully depreciated
since the second quarter of 2017. Depreciation and amortization expense
related to the NewWave operations was $12.3 million for the second
quarter of 2018 compared to $7.9 million for the second quarter of 2017.
As a percentage of revenues, depreciation and amortization expense was
18.3% for the second quarter of 2018 compared to 19.9% for the second
quarter of 2017.

We recognized a $2.7 million net loss on asset disposals during the
second quarter of 2018 compared to a $0.5 million net loss on asset
disposals during the second quarter of 2017.

Interest expense increased $3.2 million, or 26.9%, to $15.0 million due
primarily to additional outstanding debt incurred on May 1, 2017 to
finance the NewWave acquisition.

Income tax provision decreased $4.7 million, or 26.9%, to $12.8 million
in the second quarter of 2018 as a result of the 2017 Federal tax reform
legislation.

Net income increased $15.9 million, or 57.2%, to $43.8 million in the
second quarter of 2018 compared to $27.9 million in the prior year
quarter. Excluding the contribution from NewWave operations, net income
would have been $40.5 million for the second quarter of 2018 and $25.8
million for the second quarter of 2017.

Adjusted EBITDA was $127.1 million and $113.3 million for the second
quarter of 2018 and 2017, respectively. The year-over-year Adjusted
EBITDA growth of 12.2% includes an additional month of NewWave
operations in the current quarter. Excluding the contributions from
NewWave operations, Adjusted EBITDA would have been $108.4 million and
$102.0 million for the second quarter of 2018 and 2017, respectively,
and year-over-year Adjusted EBITDA growth would have been 6.2%.

Capital expenditures totaled $49.8 million and $40.5 million for the
second quarter of 2018 and 2017, respectively. Adjusted EBITDA less
capital expenditures for the second quarter of 2018 was $77.3 million,
an increase of $4.5 million, or 6.1%, from the prior year quarter.
Excluding NewWave operations, capital expenditures would have been $42.6
million for the second quarter of 2018 and $35.5 million for the second
quarter of 2017.

Liquidity and Capital Resources

At June 30, 2018, the Company had $203.5 million of cash and cash
equivalents on hand, compared to $161.8 million at December 31, 2017.
The Company's debt balance was approximately $1.2 billion at both June
30, 2018 and December 31, 2017. The Company also had $196.9 million
available for borrowing under its revolving credit facility as of June
30, 2018. The Company repurchased 30,717 shares for $20.3 million during
the second quarter of 2018.

Conference Call

Cable ONE will host a conference call with the financial community to
discuss results for the second quarter of 2018 on Thursday, August 9,
2018, at 11 a.m. Eastern Time (ET).

Shareholders, analysts and other interested parties may register for the
conference in advance at http://dpregister.com/10121805.
Those unable to pre-register may join the call via the live audio
webcast on the Cable
ONE Investor Relations
website or by dialing 1-844-378-6483 (Canada:
1-855-669-9657/International: 1-412-542-4178) shortly before 11 a.m. ET.

A replay of the call will be available from Thursday, August 9, 2018,
until Thursday, August 23, 2018, on the Cable
ONE Investor Relations
website.

Additional Information Available on Website

The information in this press release should be read in conjunction with
the condensed consolidated financial statements and notes thereto
contained in the Company's Quarterly Report on Form 10-Q for the period
ended June 30, 2018, which is posted on the "SEC Filings" section of the
Cable ONE Investor Relations website at ir.cableone.net.
Investors and others interested in more information about Cable ONE
should consult our website, which is regularly updated with financial
and other important information about the Company.

Use of Non-GAAP Financial Measures

The Company uses certain measures that are not defined by generally
accepted accounting principles in the United States ("GAAP") to evaluate
various aspects of its business. Adjusted EBITDA, Adjusted EBITDA margin
and Adjusted EBITDA less capital expenditures are non-GAAP financial
measures and should be considered in addition to, not as superior to, or
as a substitute for, net income, net profit margin or net cash provided
by operating activities reported in accordance with GAAP. Adjusted
EBITDA and Adjusted EBITDA less capital expenditures are reconciled to
net income, and Adjusted EBITDA margin is reconciled to net profit
margin, in the "Reconciliations of Non-GAAP Measures" tables
within this press release. Adjusted EBITDA less capital expenditures is
also reconciled to net cash provided by operating activities in the "Reconciliations
of Non-GAAP Measures
" tables within this press release.

"Adjusted EBITDA" is defined as net income plus interest expense, income
tax provision, depreciation and amortization, equity-based compensation,
severance expense, (gain) loss on deferred compensation,
acquisition-related costs, (gain) loss on disposal of assets, system
conversion costs, other (income) expense and other unusual operating
expenses, as provided in the "Reconciliations of Non-GAAP Measures"
tables within this press release. As such, it eliminates the significant
non-cash depreciation and amortization expense that results from the
capital-intensive nature of the Company's business as well as other
non-cash or special items and is unaffected by the Company's capital
structure or investment activities. This measure is limited in that it
does not reflect the periodic costs of certain capitalized tangible and
intangible assets used in generating revenues and the Company's cash
cost of debt financing. These costs are evaluated through other
financial measures.

"Adjusted EBITDA margin" is defined as Adjusted EBITDA divided by total
revenues.

"Adjusted EBITDA less capital expenditures," when used as a liquidity
measure, is calculated as net cash provided by operating activities
excluding the impact of capital expenditures, interest expense, income
tax provision, changes in operating assets and liabilities, the change
in deferred income taxes and other unusual operating expenses, as
provided in the "Reconciliations of Non-GAAP Measures" tables
within this press release.

The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted
EBITDA less capital expenditures to assess its performance, and it also
uses Adjusted EBITDA less capital expenditures as an indicator of its
ability to fund operations and make additional investments with
internally-generated funds. In addition, Adjusted EBITDA generally
correlates to the measure used in the leverage ratio calculations under
the Company's credit facilities and senior unsecured notes to determine
compliance with the covenants contained in the credit facilities and
ability to take certain actions under the indenture governing the notes.
Adjusted EBITDA and capital expenditures are also significant
performance measures used by the Company in its annual incentive
compensation program. Adjusted EBITDA does not take into account cash
used for mandatory debt service requirements or other non-discretionary
expenditures, and thus does not represent residual funds available for
discretionary uses.

The Company believes Adjusted EBITDA and Adjusted EBITDA margin are
useful to investors in evaluating the operating performance of the
Company. The Company believes that Adjusted EBITDA less capital
expenditures is useful to investors as it shows the Company's
performance while taking into account cash outflows for capital
expenditures and is one of several indicators of the Company's ability
to service debt, make investments and/or return capital to its
shareholders.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital
expenditures and similar measures with similar titles are common
measures used by investors, analysts and peers to compare performance in
the Company's industry, although the Company's measures of Adjusted
EBITDA, Adjusted EBITDA margin and Adjusted EBITDA less capital
expenditures may not be directly comparable to similarly titled measures
reported by other companies.

About Cable ONE

Cable ONE (NYSE:CABO) is among the 10 largest cable companies in the
United States and a leading broadband communications provider. Serving
residential and business customers in 21 states, Cable ONE provides
consumers with a wide array of communications and entertainment
services, including high-speed internet and advanced Wi-Fi solutions,
cable television and phone service. Cable ONE Business provides scalable
and cost-effective products for businesses ranging in size from small to
mid-market, in addition to enterprise, wholesale and carrier customers.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication may contain "forward-looking statements" that involve
risks and uncertainties. These statements can be identified by the fact
that they do not relate strictly to historical or current facts, but
rather are based on current expectations, estimates, assumptions and
projections about the cable industry and our business and financial
results. Forward-looking statements often include words such as "will,"
"should," "anticipates," "estimates," "expects," "projects," "intends,"
"plans," "believes" and words and terms of similar substance in
connection with discussions of future operating or financial
performance. As with any projection or forecast, forward-looking
statements are inherently susceptible to uncertainty and changes in
circumstances. Our actual results may vary materially from those
expressed or implied in our forward-looking statements. Accordingly,
undue reliance should not be placed on any forward-looking statement
made by us or on our behalf. Important factors that could cause our
actual results to differ materially from those in our forward-looking
statements include government regulation, economic, strategic, political
and social conditions and the following factors:

  • uncertainties as to our ability and the amount of time necessary to
    realize the expected synergies and other benefits of the acquisition
    of NewWave;
  • our ability to integrate NewWave's operations into our own in an
    efficient and effective manner;
  • rising levels of competition from historical and new entrants in our
    markets;
  • recent and future changes in technology;
  • our ability to continue to grow our business services product;
  • increases in programming costs and retransmission fees;
  • our ability to obtain hardware, software and operational support from
    vendors;
  • the effects of any new significant acquisitions by us;
  • adverse economic conditions;
  • the integrity and security of our network and information systems;
  • the impact of possible security breaches and other disruptions,
    including cyber-attacks;
  • our failure to obtain necessary intellectual and proprietary rights to
    operate our business and the risk of intellectual property claims and
    litigation against us;
  • our ability to retain key employees;
  • changing and additional regulation of our data, video and voice
    services, including legislative and regulatory efforts to impose new
    legal requirements on our data services;
  • our ability to renew cable system franchises;
  • increases in pole attachment costs;
  • changes in local government franchising authority and broadcast
    carriage regulations;
  • the potential adverse effect of our indebtedness on our business,
    financial condition or results of operations and cash flows;
  • the possibility that interest rates will rise, causing our obligations
    to service our variable rate indebtedness to increase significantly;
  • our ability to incur future indebtedness;
  • fluctuations in our stock price;
  • our ability to continue to pay dividends;
  • dilution from equity awards and potential stock issuances in
    connection with acquisitions;
  • provisions in our charter, by-laws and Delaware law that could
    discourage takeovers;
  • changes in our estimates of the impact of the 2017 Federal tax reform
    legislation;
  • changes in GAAP or other applicable accounting policies;
  • the outcome of our efforts to complete the remediation of the material
    weakness in our internal control over financial reporting related to
    the NewWave billing system by the end of 2018; and
  • the other risks and uncertainties detailed in the section titled "Risk
    Factors
    " in our latest Annual Report on Form 10-K as filed with
    the U.S. Securities and Exchange Commission (the "SEC").

Any forward-looking statements made by us in this communication speak
only as of the date on which they are made. We are under no obligation,
and expressly disclaim any obligation, to update or alter our
forward-looking statements, whether as a result of new information,
subsequent events or otherwise.

               
CABLE ONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(Unaudited)
 
Three Months Ended June 30,
(dollars in thousands, except per share and share data) 2018 2017

$ Change

% Change
Revenues
Residential data $ 122,471 $ 103,497 $ 18,974 18.3 %
Residential video 87,462 84,873 2,589 3.1 %
Residential voice 10,504 11,417 (913 ) (8.0 )%
Business services 38,485 32,493 5,992 18.4 %
Advertising sales 5,916 5,970 (54 ) (0.9 )%
Other   3,576     2,741     835   30.5 %
Total Revenues 268,414 240,991 27,423 11.4 %
Costs and Expenses
Operating (excluding depreciation and amortization) 91,783 84,048 7,735 9.2 %
Selling, general and administrative 54,196 50,965 3,231 6.3 %
Depreciation and amortization 49,033 48,022 1,011 2.1 %
(Gain) loss on disposal of assets, net   2,734     462     2,272   NM
Total costs and expenses   197,746     183,497     14,249   7.8 %
Income from operations 70,668 57,494 13,174 22.9 %
Interest expense (14,953 ) (11,782 ) (3,171 ) 26.9 %
Other income (expense), net   882     (322 )   1,204   NM
Income before income taxes 56,597 45,390 11,207 24.7 %
Income tax provision   12,812     17,530     (4,718 ) (26.9 )%
Net income $ 43,785   $ 27,860   $ 15,925   57.2 %
 
Net income per common share:
Basic $ 7.70   $ 4.91   $ 2.79   56.8 %
Diluted $ 7.65   $ 4.85   $ 2.80   57.7 %
Weighted average common shares outstanding:
Basic 5,687,095 5,678,394 8,701 0.2 %
Diluted 5,722,869 5,745,617 (22,748 ) (0.4 )%
 
Other comprehensive gain (loss), net of tax $ -   $ 2   $ (2 ) (100.0 )%
Comprehensive income $ 43,785   $ 27,862   $ 15,923   57.1 %
 
Dividends declared per common share $ 1.75 $ 1.50 $ 0.25 16.7 %
 
     
CABLE ONE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)
 

(in thousands, except par value and share
data)

June 30, 2018 December 31, 2017
Assets
Current Assets:
Cash and cash equivalents $ 203,522 $ 161,752
Accounts receivable, net 34,281 29,930
Income taxes receivable 9,013 21,331
Prepaid and other current assets   18,104     10,898  
Total Current Assets 264,920 223,911
Property, plant and equipment, net 819,734 831,892
Intangible assets, net 959,817 965,745
Goodwill 172,129 172,129
Other noncurrent assets   11,458     10,955  
Total Assets $ 2,228,058   $ 2,204,632  
 
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities $ 94,444 $ 117,855
Deferred revenue 18,791 15,008
Current portion of long-term debt   17,500     14,375  
Total Current Liabilities 130,735 147,238
Long-term debt 1,151,915 1,160,682
Deferred income taxes 216,713 207,154
Other noncurrent liabilities   12,762     13,111  
Total Liabilities   1,512,125     1,528,185  
 
Stockholders' Equity

Preferred stock ($0.01 par value; 4,000,000 shares authorized;
none issued or outstanding)

- -

Common stock ($0.01 par value; 40,000,000 shares authorized;
5,887,899 shares issued; and 5,703,337 and 5,731,442 shares
outstanding as of June 30, 2018 and December 31, 2017,
respectively)

59 59
Additional paid-in capital 33,256 28,412
Retained earnings 792,784 728,386
Accumulated other comprehensive loss (351 ) (352 )

Treasury stock, at cost (184,562 and 156,457 shares held as of
June 30, 2018 and December 31, 2017, respectively)

  (109,815 )   (80,058 )
Total Stockholders' Equity   715,933     676,447  
Total Liabilities and Stockholders' Equity $ 2,228,058   $ 2,204,632  
 
             
CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP MEASURES
(Unaudited)
 
Three Months Ended June 30,

(dollars in thousands)

2018   2017  

$ Change

% Change  
Net income (1) $ 43,785 $ 27,860 $ 15,925 57.2 %
 
Net profit margin 16.3 % 11.6 %
 
Plus: Interest expense 14,953 11,782 3,171 26.9 %
Income tax provision 12,812 17,530 (4,718 ) (26.9 )%
Depreciation and amortization 49,033 48,022 1,011 2.1 %
Equity-based compensation 2,506 2,418 88 3.6 %
Severance expense 241 1,345 (1,104 ) (82.1 )%
(Gain) loss on deferred compensation 600 339 261 77.0 %
Acquisition-related costs - 3,242 (3,242 ) (100.0 )%
(Gain) loss on disposal of assets, net 2,734 462 2,272 NM
System conversion costs 1,327 - 1,327 NM
Other (income) expense, net   (882 )   322     (1,204 ) NM
Adjusted EBITDA (1) $ 127,109 $ 113,322 $ 13,787 12.2 %
 
Adjusted EBITDA margin 47.4 % 47.0 %
 
Less: Capital expenditures (1)   49,849     40,513     9,336   23.0 %
Adjusted EBITDA less capital expenditures $ 77,260   $ 72,809   $ 4,451   6.1 %
 
NM = Not meaningful.

(1)

Net income, Adjusted EBITDA and capital expenditures results for the
second quarter of 2018 include a full quarter of NewWave operations,
while the comparable results for the second quarter of 2017 include
only two months of NewWave operations. Excluding NewWave operations,
net income for the second quarter of 2018 would have increased 57.1%
from $25.8 million to $40.5 million, Adjusted EBITDA would have
increased 6.2% from $102.0 million to $108.4 million and capital
expenditures would have increased 20.2% from $35.5 million to $42.6
million.
 
Three Months Ended June 30,

(dollars in thousands)

2018   2017  

$ Change

% Change  
Net cash provided by operating activities $ 101,909 $ 52,599 $ 49,310 93.7 %
Capital expenditures (49,849 ) (40,513 ) (9,336 ) 23.0 %
Interest expense 14,953 11,782 3,171 26.9 %
Amortization of debt issuance cost (1,042 ) (791 ) (251 ) 31.7 %
Income tax provision 12,812 17,530 (4,718 ) (26.9 )%
Changes in operating assets and liabilities 1,150 34,489 (33,339 ) (96.7 )%
Change in deferred income taxes (3,849 ) (6,922 ) 3,073 (44.4 )%
(Gain) loss on deferred compensation 600 339 261 77.0 %
Acquisition-related costs - 3,242 (3,242 ) (100.0 )%
Severance expense 241 1,345 (1,104 ) (82.1 )%
Write-off of debt issuance costs (110 ) (613 ) 503 (82.1 )%
System conversion costs 1,327 - 1,327 NM
Other (income) expense, net   (882 )   322     (1,204 ) NM
Adjusted EBITDA less capital expenditures $ 77,260   $ 72,809   $ 4,451   6.1 %
 
NM = Not meaningful.
 
                         
CABLE ONE, INC.
OPERATING STATISTICS
(Unaudited)
   
As of June 30, Year-Over-Year
2018 2017 % Change
Legacy CABO   NewWave Combined Legacy CABO   Combined Legacy CABO   Combined
Homes Passed (1) 1,633,629 453,528 2,087,157 1,681,279 2,128,188 (2.8 )% (1.9 )%
 
Residential Customers 597,162 132,845 730,007 601,883 741,225 (0.8 )% (1.5 )%
 
Data PSUs 483,589 108,645 592,234 474,815 585,049 1.8 % 1.2 %
Video PSUs 253,236 70,278 323,514 284,695 366,816 (11.1 )% (11.8 )%
Voice PSUs   83,385     20,449     103,834     92,100     114,519   (9.5 )% (9.3 )%
Total residential PSUs 820,210 199,372 1,019,582 851,610 1,066,384 (3.7 )% (4.4 )%
 
Business Customers 57,312 12,297 69,609 53,426 64,258 7.3 % 8.3 %
 
Data PSUs 51,044 10,598 61,642 46,909 55,288 8.8 % 11.5 %
Video PSUs 12,560 4,038 16,598 13,295 17,188 (5.5 )% (3.4 )%
Voice PSUs   20,695     5,154     25,849     19,156     23,767   8.0 % 8.8 %
Total business PSUs 84,299 19,790 104,089 79,360 96,243 6.2 % 8.2 %
 
Total Customers 654,474 145,142 799,616 655,309 805,483 (0.1 )% (0.7 )%
Total non-video 388,678 72,029 460,707 356,812 N/A 8.9 % N/A
Percent of total 59.4 % 49.6 % 57.6 % 54.4 % N/A 5.0 % N/A
 
Data PSUs 534,633 119,243 653,876 521,724 640,337 2.5 % 2.1 %
Video PSUs 265,796 74,316 340,112 297,990 384,004 (10.8 )% (11.4 )%
Voice PSUs   104,080     25,603     129,683     111,256     138,286   (6.4 )% (6.2 )%
Total PSUs 904,509 219,162 1,123,671 930,970 1,162,627 (2.8 )% (3.4 )%
 
Penetration
Data 32.7 % 26.3 % 31.3 % 31.0 % 30.1 % 1.7 % 1.2 %
Video 16.3 % 16.4 % 16.3 % 17.7 % 18.0 % (1.4 )% (1.7 )%
Voice 6.4 % 5.6 % 6.2 % 6.6 % 6.5 % (0.2 )% (0.3 )%
 
Share of Second Quarter Revenues
Residential data 46.9 % 39.7 % 45.6 % 44.4 % 42.9 % 2.5 % 2.7 %
Business services   14.1 %   15.3 %   14.3 %   13.3 %   13.5 % 0.8 % 0.8 %
Total 61.0 % 55.0 % 59.9 % 57.7 % 56.4 % 3.3 % 3.5 %
 
ARPU - Second Quarter
Residential data (2) $ 70.62 $ 58.98 $ 68.47 $ 64.70 $ 62.52 9.2 % 9.5 %
Residential video (2) $ 88.98 $ 86.99 $ 88.55 $ 81.65 $ 82.11 9.0 % 7.8 %
Residential voice (2) $ 34.83 $ 26.66 $ 33.22 $ 34.98 $ 35.09 (0.4 )% (5.3 )%
Business services (3) $ 179.81 $ 211.72 $ 185.29 $ 172.49 $ 177.43 4.2 % 4.4 %
 
Number of Employees 1,829 463 2,292 1,850 2,402 (1.1 )% (4.6 )%
 
(1)   Homes passed represents the number of residential and business
serviceable addresses within our footprint. During the first quarter
of 2018, the number of Legacy CABO homes passed was reduced by
approximately 74,000 to adjust for duplicate and non-serviceable
addresses.
(2) Average monthly revenue per unit values represent the applicable
quarterly residential service revenues (excluding installation and
activation fees) divided by the corresponding average of the number
of PSUs at the beginning and end of each period, divided by three,
except that for any new PSUs added as a result of an acquisition
occurring during the reporting period, the associated average
monthly revenue per unit values represent the applicable residential
service revenues (excluding installation and activation fees)
divided by the pro-rated number of PSUs during such period.
(3)

Average monthly revenue per unit values represent quarterly
business services revenues (excluding installation and activation
fees) divided by the average of the number of business customer
relationships at the beginning and end of each period, divided by
three, except that for any new business customer relationships
added as a result of an acquisition occurring during the reporting
period, the associated average monthly revenue per unit values
represent business services revenues (excluding installation and
activation fees) divided by the prorated number of business
customer relationships during such period.

N/A Information not available.

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