0001632127false00016321272024-02-222024-02-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________
FORM 8-K
_________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 22, 2024
_________________________________________________________
Cable One, Inc.
(Exact Name of Registrant as Specified in Its Charter)
_________________________________________________________
Delaware001-3686313-3060083
(State or Other Jurisdiction of
Incorporation or Organization)		(Commission File Number)(I.R.S. Employer Identification No.)
210 E. Earll Drive, Phoenix, Arizona
85012
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: (602) 364-6000
Not applicable
(Former name or former address, if changed since last report.)
_________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per shareCABONew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02    Results of Operations and Financial Condition.
On February 22, 2024, Cable One, Inc. (the “Company”) issued a press release related to its results for the quarter and year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference into this Item 2.02.
The information contained in this Item 2.02, as well as in Exhibit 99.1, is furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01    Financial Statements and Exhibits.
Exhibit No.Description
99.1
104The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Cable One, Inc.
By:/s/ Peter N. Witty
Name:Peter N. Witty
Title:Chief Legal and Administrative Officer
Date: February 22, 2024


Exhibit 99.1
image_0a.jpg
Cable One Reports Fourth Quarter and Full Year 2023 Results
February 22, 2024 – PHOENIX – (BUSINESS WIRE) – Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable One”) today reported financial and operating results for the quarter and year ended December 31, 2023.
Three Months Ended December 31,
(dollars in thousands)20232022$ Change% Change
Revenues$411,815$425,515$(13,700)(3.2)%
Net income (loss)$115,294$(77,210)$192,504 (249.3)%
Net profit margin28.0%(18.1)%
Cash flows from operating activities$151,669$168,247$(16,578)(9.9)%
Adjusted EBITDA(1)
$226,877$233,215$(6,338)(2.7)%
Adjusted EBITDA margin(1)
55.1%54.8%
Capital expenditures$115,600$106,843$8,757 8.2 %
Adjusted EBITDA less capital expenditures(1)
$111,277$126,372$(15,095)(11.9)%
Year Ended December 31,
(dollars in thousands)20232022$ Change% Change
Revenues$1,678,081$1,706,043$(27,962)(1.6)%
Net income$267,436$234,118$33,318 14.2 %
Net profit margin15.9%13.7%
Cash flows from operating activities$663,170$738,040$(74,870)(10.1)%
Adjusted EBITDA(1)
$916,944$911,851$5,093 0.6 %
Adjusted EBITDA margin(1)
54.6%53.4%
Capital expenditures$371,028$414,095$(43,067)(10.4)%
Adjusted EBITDA less capital expenditures(1)
$545,916$497,756$48,160 9.7 %
“Our return to sequential residential high-speed data customer growth in the fourth quarter, as expected, is very encouraging," said Julie Laulis, Cable One President and CEO. "Along with our highest margin residential data and business services product lines comprising over 77% of all revenues during the quarter, we look forward to executing on our business plan for 2024.”
Fourth Quarter 2023 Highlights:
•Net income was $115.3 million in the fourth quarter of 2023 compared to a net loss of $77.2 million in the fourth quarter of 2022. Adjusted EBITDA was $226.9 million in the fourth quarter of 2023 compared to $233.2 million in the fourth quarter of 2022. Net profit margin was 28.0% and Adjusted EBITDA margin was 55.1%.
•Net cash provided by operating activities was $151.7 million in the fourth quarter of 2023 compared to $168.2 million in the fourth quarter of 2022. Adjusted EBITDA less capital expenditures was $111.3 million in the fourth quarter of 2023 compared to $126.4 million in the fourth quarter of 2022.
•Total revenues were $411.8 million in the fourth quarter of 2023 compared to $425.5 million in the fourth quarter of 2022. Year-over-year, residential data revenues increased 2.1%.
•Residential data primary service units (“PSUs”) grew sequentially by over 1,600, or 0.2%, from the third quarter of 2023.
•Residential data average monthly revenue per unit (“ARPU”) was $83.95 for the fourth quarter of 2023, an increase of $2.24, or 2.7%, from the prior year quarter.
•The Company paid $16.8 million in dividends during the fourth quarter of 2023.
•The Company repaid $50.0 million under its revolving credit facility (the "Revolver") during the fourth quarter of 2023.
Full Year 2023 Highlights:
•Net income was $267.4 million in 2023 compared to $234.1 million in 2022. Adjusted EBITDA was $916.9 million in 2023 compared to $911.9 million in 2022. Net profit margin was 15.9% and Adjusted EBITDA margin was 54.6%.
•Net cash provided by operating activities was $663.2 million in 2023 compared to $738.0 million in 2022. Adjusted EBITDA less capital expenditures was $545.9 million in 2023 compared to $497.8 million in 2022.
•Total revenues were $1.7 billion in both 2023 and 2022. Year-over-year, residential data revenues increased 4.8%.
•Residential data ARPU was $84.57 for 2023, an increase of $3.45, or 4.3%, from the prior year.
•The Company repurchased 141,551 shares of its common stock at an aggregate cost of $99.6 million and paid $66.3 million in dividends during 2023. The Company had $143.1 million of remaining share repurchase authorization as of December 31, 2023.
•The Company repaid $150.0 million under the Revolver during 2023.

(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 (loss), 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.
1

Fourth Quarter 2023 Financial Results Compared to Fourth Quarter 2022
Revenues decreased $13.7 million, or 3.2%, to $411.8 million for the fourth quarter of 2023 due primarily to decreases in residential video, residential voice and other revenues, partially offset by an increase in residential data revenues.
Net income was $115.3 million in the fourth quarter of 2023 compared to a net loss of $77.2 million in the prior year quarter. Net income for the fourth quarter of 2023 included a $66.6 million non-cash gain on fair value adjustment associated with the call and put options to acquire the remaining equity interests in Mega Broadband Investments Holdings LLC (the "MBI Net Option"). Net loss for the fourth quarter of 2022 included a $128.8 million non-cash loss on fair value adjustment associated with the MBI Net Option. Net profit margin was 28.0% in the fourth quarter of 2023 compared to negative 18.1% in the prior year quarter.
Adjusted EBITDA was $226.9 million and $233.2 million for the fourth quarter of 2023 and 2022, respectively. Adjusted EBITDA margin increased to 55.1% in the fourth quarter of 2023 from 54.8% in the prior year quarter.
Net cash provided by operating activities was $151.7 million in the fourth quarter of 2023 compared to $168.2 million in the fourth quarter of 2022. The decrease was driven primarily by higher income tax payments, unfavorable changes in the timing of working capital balances compared to the prior year and lower Adjusted EBITDA. Capital expenditures for the fourth quarter of 2023 totaled $115.6 million compared to $106.8 million for the fourth quarter of 2022. Adjusted EBITDA less capital expenditures for the fourth quarter of 2023 was $111.3 million compared to $126.4 million in the prior year quarter.
Full Year 2023 Financial Results Compared to Full Year 2022
Revenues decreased $28.0 million, or 1.6%, due primarily to decreases in residential video and residential voice revenues, partially offset by an increase in residential data revenues.
Net income was $267.4 million in 2023 compared to $234.1 million in the prior year. Net income for 2023 included a $28.0 million non-cash gain on fair value adjustment associated with the MBI Net Option, while net income for 2022 included a $40.7 million non-cash loss on fair value adjustment associated with the MBI Net Option. Net income for 2023 also included $54.3 million in net losses from the Company's pro rata share of earnings in equity method investments compared to $14.9 million in net losses in the prior year. Net profit margin was 15.9% in 2023 compared to 13.7% in the prior year.
Adjusted EBITDA was $916.9 million and $911.9 million for 2023 and 2022, respectively. Adjusted EBITDA margin increased to 54.6% in 2023 from 53.4% in the prior year.
Net cash provided by operating activities was $663.2 million in 2023 compared to $738.0 million in 2022. The decrease was driven by higher income tax and interest payments along with unfavorable changes in the timing of working capital balances compared to the prior year, partially offset by an increase in Adjusted EBITDA. Capital expenditures for 2023 totaled $371.0 million compared to $414.1 million for 2022. Adjusted EBITDA less capital expenditures for 2023 was $545.9 million compared to $497.8 million in the prior year.
2

Liquidity and Capital Resources
At December 31, 2023, the Company had $190.3 million of cash and cash equivalents on hand compared to $215.2 million at December 31, 2022. The Company’s debt balance was approximately $3.7 billion and $3.8 billion at December 31, 2023 and 2022, respectively. The Company had $338.0 million of borrowings and $662.0 million available for borrowing under its Revolver as of December 31, 2023.
The Company paid $16.8 million in dividends to stockholders during the fourth quarter of 2023. During 2023, the Company paid $66.3 million in dividends and repurchased 141,551 shares of its common stock at an aggregate cost of $99.6 million. The Company had $143.1 million of remaining share repurchase authorization as of December 31, 2023.
The Company repaid $50.0 million under its Revolver during the fourth quarter of 2023, bringing total repayments under the Revolver to $150.0 million during 2023. In February 2024, the Company repaid an additional $50.0 million under its Revolver.
The Company's capital expenditures by category were as follows for the periods presented (in thousands):
Three Months Ended December 31,Year Ended December 31,
2023202220232022
Customer premise equipment(1)
$17,045$24,070$62,066$101,252
Commercial(2)
11,1819,32838,89334,282
Scalable infrastructure(3)
26,4416,02954,09752,086
Line extensions(4)
17,94319,26951,46652,839
Upgrade/rebuild(5)
13,52124,67560,89887,284
Support capital(6)
29,46923,472103,60886,352
Total$115,600$106,843$371,028$414,095
(1)Customer premise equipment includes costs incurred at customer locations, including installation costs and customer premise equipment (e.g., modems and set-top boxes).
(2)Commercial includes costs related to securing business services customers and PSUs, including small and medium-sized businesses and enterprise customers.
(3)Scalable infrastructure includes costs not related to customer premise equipment to secure growth of new customers and PSUs or provide service enhancements (e.g., headend equipment).
(4)Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
(5)Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.
(6)Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles) and capitalized internal labor costs not associated with customer installation activities.
3

Conference Call
Cable One 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).

The conference call will be available via an audio webcast on the Cable One Investor Relations website at ir.cableone.net or by dialing 1-888-800-3155 (International: 1-646-307-1696) and using the access code 1202376. Participants should register for the webcast or dial in for the conference call shortly before 5 p.m. ET.
A replay of the call will be available from February 22, 2024 until March 7, 2024 at ir.cableone.net.
Additional Information Available on Website
The information in this press release should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the period ended December 31, 2023 (the "2023 Form 10-K"), which will be posted on the “SEC Filings” section of the Cable One Investor Relations website at ir.cableone.net when it is filed with the Securities and Exchange Commission (the “SEC”). Investors and others interested in more information about Cable One should consult the Company’s 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, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA are non-GAAP financial measures and should be considered in addition to, not as superior to, or as a substitute for, net income (loss), net profit margin, net cash provided by operating activities or capital expenditures as a percentage of net income (loss) reported in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA less capital expenditures are reconciled to net income (loss), Adjusted EBITDA margin is reconciled to net profit margin and capital expenditures as a percentage of Adjusted EBITDA is reconciled to capital expenditures as a percentage of net income (loss). Adjusted EBITDA less capital expenditures is also reconciled to net cash provided by operating activities. These reconciliations are included in the “Reconciliations of Non-GAAP Measures” tables within this press release.
“Adjusted EBITDA” is defined as net income (loss) plus interest expense, income tax provision, depreciation and amortization, equity-based compensation, severance and contract termination costs, (gain) loss on deferred compensation, acquisition-related costs, (gain) loss on asset sales and disposals, system conversion costs, (gain) loss on sales of businesses, equity method investment (income) loss, other (income) expense and other unusual items, 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, change in deferred income taxes and other unusual items, as provided in the “Reconciliations of Non-GAAP Measures” tables within this press release.
“Capital expenditures as a percentage of Adjusted EBITDA” is defined as capital expenditures divided by Adjusted EBITDA.
The Company uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA 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 agreement and the indenture governing the Company’s non-convertible senior unsecured notes to determine compliance with the covenants contained in the credit agreement and the ability to take certain actions under the indenture governing the non-convertible senior unsecured notes. Adjusted EBITDA, capital expenditures as a
percentage of Adjusted EBITDA, and Adjusted EBITDA less capital expenditures are also significant performance measures that have been used by the Company in its incentive compensation programs. 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 that Adjusted EBITDA, Adjusted EBITDA margin and capital expenditures as a percentage of Adjusted EBITDA 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 stockholders.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital expenditures, capital expenditures as a percentage of Adjusted EBITDA 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, Adjusted EBITDA less capital expenditures and capital expenditures as a percentage of Adjusted EBITDA may not be directly comparable to similarly titled measures reported by other companies.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband communications provider committed to connecting customers and communities to what matters most. Through Sparklight® and the associated Cable One family of brands, the Company serves more than 1 million residential and business customers in 24 states. Powered by a fiber-rich network, the Cable One family of brands provide residential customers with a wide array of connectivity and entertainment services, including Gigabit speeds, advanced Wi-Fi and video. For businesses ranging from small and mid-market up to enterprise, wholesale and carrier, the Company offers scalable, cost-effective solutions that enable businesses of all sizes to grow, compete and succeed.
Contacts
Trish Niemann
Todd Koetje
Vice President, Communications Strategy
Chief Financial Officer
602-364-6372
investor_relations@cableone.biz
patricia.niemann@cableone.biz
4

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 Company’s industry, business, strategy, acquisitions and strategic investments, dividend policy, financial results and financial condition. 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. The Company’s actual results may vary materially from those expressed or implied in its forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by the Company or on its behalf. Important factors that could cause the Company’s actual results to differ materially from those in its forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors, which are discussed in the 2023 Form 10-K to be filed with the SEC:

•rising levels of competition from historical and new entrants in the Company’s markets;
•recent and future changes in technology, and the Company's ability to develop, deploy and operate new technologies, service offerings and customer service platforms;
•the Company’s ability to continue to grow its residential data and business services revenues and customer base;
•increases in programming costs and retransmission fees;
•the Company’s ability to obtain hardware, software and operational support from vendors;
•risks that the Company may fail to realize the benefits anticipated as a result of the Company's purchase of the remaining interests in Hargray Acquisition Holdings, LLC that the Company did not already own;
•risks relating to existing or future acquisitions and strategic investments by the Company;
•risks that the implementation of the Company’s new enterprise resource planning and billing systems disrupt business operations;
•the integrity and security of the Company’s network and information systems;
•the impact of possible security breaches and other disruptions, including cyber-attacks;
•the Company’s failure to obtain necessary intellectual and proprietary rights to operate its business and the risk of intellectual property claims and litigation against the Company;
•legislative or regulatory efforts to impose network neutrality and other new requirements on the Company’s data services;
•additional regulation of the Company’s video and voice services;
•the Company’s ability to renew cable system franchises;
•increases in pole attachment costs;
•changes in local governmental franchising authority and broadcast carriage regulations;
•changes in government subsidy programs;
•the potential adverse effect of the Company’s level of indebtedness on its business, financial condition or results of operations and cash flows;
•the restrictions the terms of the Company’s indebtedness place on its business and corporate actions;
•the possibility that interest rates will continue to rise, causing the Company’s obligations to service its variable rate indebtedness to increase significantly;
•risks associated with the Company’s convertible indebtedness;
•the Company’s ability to continue to pay dividends;
•provisions in the Company’s charter, by-laws and Delaware law that could discourage takeovers and limit the judicial forum for certain disputes;
•adverse economic conditions, labor shortages, supply chain disruptions, changes in rates of inflation and the level of move activity in the housing sector;
•pandemics, epidemics or disease outbreaks, such as the COVID-19 pandemic, have, and may in the future, disrupt the Company's business and operations, which could materially affect the Company's business, financial condition, results of operations and cash flows;
•lower demand for the Company's residential data and business services products;
•fluctuations in the Company’s stock price;
•dilution from equity awards, convertible indebtedness and potential future convertible debt and stock issuances;
•damage to the Company’s reputation or brand image;
•the Company’s ability to retain key employees (whom the Company refers to as associates);
•the Company’s ability to incur future indebtedness;
•provisions in the Company’s charter that could limit the liabilities for directors; and
•the other risks and uncertainties detailed from time to time in the Company’s filings with the SEC, including but not limited to those described under "Risk Factors" in its latest Annual Report on Form 10-K and in its subsequent filings with the SEC.
Any forward-looking statements made by the Company in this communication speak only as of the date on which they are made. The Company is under no obligation, and expressly disclaims any obligation, except as required by law, to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.
5

CABLE ONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended December 31,
(dollars in thousands, except per share data)20232022$ Change% Change
Revenues
Residential data$242,340 $237,247 $5,093 2.1 %
Residential video59,247 75,256 (16,009)(21.3)%
Residential voice8,755 9,991 (1,236)(12.4)%
Business services75,879 76,287 (408)(0.5)%
Other25,594 26,734 (1,140)(4.3)%
Total Revenues411,815 425,515 (13,700)(3.2)%
Costs and Expenses:
Operating (excluding depreciation and amortization)106,265 112,617 (6,352)(5.6)%
Selling, general and administrative89,022 85,739 3,283 3.8 %
Depreciation and amortization87,305 86,898 407 0.5 %
(Gain) loss on asset sales and disposals, net1,994 1,584 410 25.9 %
Total Costs and Expenses284,586 286,838 (2,252)(0.8)%
Income from operations127,229 138,677 (11,448)(8.3)%
Interest expense(42,381)(39,164)(3,217)8.2 %
Other income (expense), net71,994 (122,873)194,867 (158.6)%
Income (loss) before income taxes and equity method investment income (loss), net
156,842 (23,360)180,202 NM
Income tax provision25,765 40,167 (14,402)(35.9)%
Income (loss) before equity method investment income (loss), net
131,077 (63,527)194,604 NM
Equity method investment income (loss), net(15,783)(13,683)(2,100)15.3 %
Net income (loss)
$115,294 $(77,210)$192,504 (249.3)%
Net Income (Loss) per Common Share:
Basic$20.56 $(13.38)$33.94 NM
Diluted$19.39 $(13.38)$32.77 (244.9)%
Weighted Average Common Shares Outstanding:
Basic5,606,607 5,769,537 (162,930)(2.8)%
Diluted6,025,092 5,769,537 255,555 4.4 %
Unrealized gain (loss) on cash flow hedges and other, net of tax$(35,624)$(4,475)$(31,149)NM
Comprehensive income (loss)
$79,670 $(81,685)$161,355 (197.5)%
NM = Not meaningful.
6

CABLE ONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Year Ended December 31,
(dollars in thousands, except per share data)20232022$ Change% Change
Revenues
Residential data$979,296 $934,564 $44,732 4.8 %
Residential video257,966 325,200 (67,234)(20.7)%
Residential voice37,088 43,096 (6,008)(13.9)%
Business services304,527 305,286 (759)(0.2)%
Other99,204 97,897 1,307 1.3 %
Total Revenues1,678,081 1,706,043 (27,962)(1.6)%
Costs and Expenses:
Operating (excluding depreciation and amortization)440,916 470,916 (30,000)(6.4)%
Selling, general and administrative354,663 350,310 4,353 1.2 %
Depreciation and amortization342,891 350,462 (7,571)(2.2)%
(Gain) loss on asset sales and disposals, net12,708 9,199 3,509 38.1 %
(Gain) loss on sales of businesses, net
— (13,833)13,833 (100.0)%
Total Costs and Expenses1,151,178 1,167,054 (15,876)(1.4)%
Income from operations526,903 538,989 (12,086)(2.2)%
Interest expense(170,147)(137,713)(32,434)23.6 %
Other income (expense), net54,640 (25,913)80,553 NM
Income before income taxes and equity method investment income (loss), net411,396 375,363 36,033 9.6 %
Income tax provision89,704 126,332 (36,628)(29.0)%
Income before equity method investment income (loss), net321,692 249,031 72,661 29.2 %
Equity method investment income (loss), net(54,256)(14,913)(39,343)NM
Net income$267,436 $234,118 $33,318 14.2 %
Net Income per Common Share:
Basic$47.34 $39.73 $7.61 19.2 %
Diluted$45.14 $38.06 $7.08 18.6 %
Weighted Average Common Shares Outstanding:
Basic5,648,934 5,892,077 (243,143)(4.1)%
Diluted6,062,331 6,314,148 (251,818)(4.0)%
Unrealized gain (loss) on cash flow hedges and other, net of tax$(13,286)$132,826 $(146,112)(110.0)%
Comprehensive income$254,150 $366,944 $(112,794)(30.7)%
NM = Not meaningful.
7

CABLE ONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands, except par values)December 31, 2023December 31, 2022
Assets
Current Assets:
Cash and cash equivalents$190,289 $215,150 
Accounts receivable, net93,973 74,383 
Prepaid and other current assets58,116 57,172 
Total Current Assets342,378 346,705 
Equity investments1,125,447 1,195,221 
Property, plant and equipment, net1,791,120 1,701,755 
Intangible assets, net2,595,892 2,666,585 
Goodwill928,947 928,947 
Other noncurrent assets63,149 74,677 
Total Assets$6,846,933 $6,913,890 
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities$156,645 $164,518 
Deferred revenue27,169 23,706 
Current portion of long-term debt19,023 55,931 
Total Current Liabilities202,837 244,155 
Long-term debt3,626,928 3,752,591 
Deferred income taxes974,467 966,821 
Other noncurrent liabilities169,556 192,350 
Total Liabilities4,973,788 5,155,917 
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; 6,175,399 shares issued; and 5,616,987 and 5,766,011 shares outstanding as of December 31, 2023 and 2022, respectively)62 62 
Additional paid-in capital607,574 578,154 
Retained earnings1,825,542 1,624,406 
Accumulated other comprehensive income (loss)36,745 50,031 
Treasury stock, at cost (558,412 and 409,388 shares held as of December 31, 2023 and 2022, respectively)(596,778)(494,680)
Total Stockholders' Equity1,873,145 1,757,973 
Total Liabilities and Stockholders' Equity$6,846,933 $6,913,890 


8

CABLE ONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended December 31,Year Ended December 31,
(in thousands)2023202220232022
Cash flows from operating activities:
Net income$115,294 $(77,210)$267,436 $234,118 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization87,305 86,898 342,891 350,462 
Non-cash interest expense, net2,215 2,394 9,019 9,518 
Equity-based compensation7,601 5,498 29,420 22,514 
Write-off of debt issuance costs— — 3,340 — 
Change in deferred income taxes11,344 35,906 11,479 68,378 
(Gain) loss on asset sales and disposals, net1,994 1,584 12,708 9,199 
(Gain) loss on sales of businesses, net— — — (13,833)
Equity method investment (income) loss, net15,783 13,683 54,256 14,913 
Fair value adjustments(66,591)128,420 (39,514)40,400 
Changes in operating assets and liabilities:
Accounts receivable, net(7,642)(9,776)(19,590)2,734 
Prepaid and other current assets3,045 10,877 (2,227)(3,971)
Accounts payable and accrued liabilities(17,902)(25,264)(10,664)(157)
Deferred revenue(91)95 3,463 (389)
Other(686)(4,858)1,153 4,154 
Net cash provided by operating activities151,669 168,247 663,170 738,040 
Cash flows from investing activities:
Cash paid for debt and equity investments(13,890)(25,310)(29,410)(50,385)
Capital expenditures(115,600)(106,843)(371,028)(414,095)
Change in accrued expenses related to capital expenditures2,630 (627)3,324 3,358 
Purchase of wireless licenses(2,750)— (2,750)— 
Proceeds from sales of property, plant and equipment168 19 1,230 3,628 
Proceeds from sales of equity investments— — 56,730 — 
Proceeds from sales of operations— — — 9,227 
Net cash used in investing activities(129,442)(132,761)(341,904)(448,267)
Cash flows from financing activities:
Proceeds from long-term debt borrowings— — 638,000 — 
Payment of debt issuance costs— — (8,096)— 
Payments on long-term debt(54,711)(13,083)(807,633)(38,845)
Repurchases of common stock— (46,258)(99,614)(353,289)
Payment of withholding tax for equity awards(93)(210)(2,484)(5,036)
Dividends paid to stockholders(16,766)(16,504)(66,300)(66,255)
Net cash used in financing activities(71,570)(76,055)(346,127)(463,425)
Change in cash and cash equivalents(49,343)(40,569)(24,861)(173,652)
Cash and cash equivalents, beginning of period239,632 255,719 215,150 388,802 
Cash and cash equivalents, end of period$190,289 $215,150 $190,289 $215,150 
Supplemental cash flow disclosures:
Cash paid for interest, net of capitalized interest$45,131 $43,556 $160,224 $127,158 
Cash paid for income taxes, net of refunds received$16,151 $4,882 $92,456 $23,379 
9

CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP MEASURES
(Unaudited)
Three Months Ended December 31,
(dollars in thousands)20232022$ Change% Change
Net income (loss)$115,294$(77,210)$192,504(249.3)%
Net profit margin28.0%(18.1)%
Plus: Interest expense42,38139,1643,2178.2 %
Income tax provision25,76540,167(14,402)(35.9)%
Depreciation and amortization87,30586,8984070.5 %
Equity-based compensation7,6015,4982,10338.3 %
Severance and contract termination costs1,673—1,673NM
(Gain) loss on deferred compensation—51(51)(100.0)%
Acquisition-related costs4734244911.6 %
(Gain) loss on asset sales and disposals, net1,9941,58441025.9 %
System conversion costs60283519NM
Equity method investment (income) loss, net15,78313,6832,10015.3 %
Other (income) expense, net(71,994)122,873(194,867)(158.6)%
Adjusted EBITDA$226,877$233,215$(6,338)(2.7)%
Adjusted EBITDA margin55.1%54.8%
Less: Capital expenditures$115,600$106,843$8,7578.2 %
Capital expenditures as a percentage of net income (loss)100.3%(138.4)%
Capital expenditures as a percentage of Adjusted EBITDA51.0%45.8%
Adjusted EBITDA less capital expenditures$111,277$126,372$(15,095)(11.9)%
NM = Not meaningful.
Three Months Ended December 31,
(dollars in thousands)20232022$ Change% Change
Net cash provided by operating activities$151,669 $168,247 $(16,578)(9.9)%
Capital expenditures(115,600)(106,843)(8,757)8.2 %
Interest expense42,381 39,164 3,217 8.2 %
Non-cash interest expense(2,215)(2,394)179 (7.5)%
Income tax provision25,765 40,167 (14,402)(35.9)%
Changes in operating assets and liabilities23,276 28,926 (5,650)(19.5)%
Change in deferred income taxes(11,344)(35,906)24,562 (68.4)%
(Gain) loss on deferred compensation— 51 (51)(100.0)%
Acquisition-related costs473 424 49 11.6 %
Severance and contract termination costs1,673 — 1,673 NM
System conversion costs602 83 519 NM
Fair value adjustments66,591 (128,420)195,011 (151.9)%
Other (income) expense, net(71,994)122,873 (194,867)(158.6)%
Adjusted EBITDA less capital expenditures$111,277 $126,372 $(15,095)(11.9)%
NM = Not meaningful.
10

CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP MEASURES
(Unaudited)
Year Ended December 31,
(dollars in thousands)20232022$ Change% Change
Net income$267,436$234,118$33,31814.2 %
Net profit margin15.9%13.7%
Plus: Interest expense170,147137,71332,43423.6 %
Income tax provision89,704126,332(36,628)(29.0)%
Depreciation and amortization342,891350,462(7,571)(2.2)%
Equity-based compensation29,42022,5146,90630.7 %
Severance and contract termination costs2,890—2,890NM
(Gain) loss on deferred compensation—(154)154(100.0)%
Acquisition-related costs1,3313,208(1,877)(58.5)%
(Gain) loss on asset sales and disposals, net12,7089,1993,50938.1 %
System conversion costs8011,466(665)(45.4)%
(Gain) loss on sales of businesses, net—(13,833)13,833(100.0)%
Equity method investment (income) loss, net54,25614,91339,343NM
Other (income) expense, net(54,640)25,913(80,553)NM
Adjusted EBITDA$916,944$911,851$5,0930.6 %
Adjusted EBITDA margin54.6%53.4%
Less: Capital expenditures$371,028$414,095$(43,067)(10.4)%
Capital expenditures as a percentage of net income138.7%176.9%
Capital expenditures as a percentage of Adjusted EBITDA40.5%45.4%
Adjusted EBITDA less capital expenditures$545,916$497,756$48,1609.7 %
NM = Not meaningful.
Year Ended December 31,
(dollars in thousands)20232022$ Change% Change
Net cash provided by operating activities$663,170 $738,040 $(74,870)(10.1)%
Capital expenditures(371,028)(414,095)43,067 (10.4)%
Interest expense170,147 137,713 32,434 23.6 %
Non-cash interest expense(9,019)(9,518)499 (5.2)%
Income tax provision89,704 126,332 (36,628)(29.0)%
Changes in operating assets and liabilities27,865 (2,371)30,236 NM
Write-off of debt issuance costs(3,340)— (3,340)NM
Change in deferred income taxes(11,479)(68,378)56,899 (83.2)%
(Gain) loss on deferred compensation— (154)154 (100.0)%
Acquisition-related costs1,331 3,208 (1,877)(58.5)%
Severance and contract termination costs2,890 — 2,890 NM
System conversion costs801 1,466 (665)(45.4)%
Fair value adjustment39,514 (40,400)79,914 (197.8)%
Other (income) expense, net(54,640)25,913 (80,553)NM
Adjusted EBITDA less capital expenditures$545,916 $497,756 $48,160 9.7 %
NM = Not meaningful.
11

CABLE ONE, INC.
OPERATING STATISTICS
(Unaudited)
As of December 31,
(in thousands, except percentages and ARPU data)20232022Change% Change
Homes Passed2,774.92,704.370.62.6 %
Residential Customers994.41,010.2(15.8)(1.6)%
Data PSUs960.5963.7(3.3)(0.3)%
Video PSUs134.2171.2(37.1)(21.6)%
Voice PSUs79.291.3(12.1)(13.3)%
Total residential PSUs1,173.81,226.3(52.4)(4.3)%
Business Customers102.6101.61.11.1 %
Data PSUs98.896.62.22.3 %
Video PSUs8.110.3(2.2)(21.7)%
Voice PSUs39.540.8(1.3)(3.1)%
Total business services PSUs146.4147.7(1.3)(0.9)%
Total Customers1,097.01,111.7(14.7)(1.3)%
Total non-video952.3927.225.12.7 %
Percent of total86.8 %83.4 %3.4 %
Data PSUs1,059.31,060.4(1.1)(0.1)%
Video PSUs142.3181.5(39.3)(21.6)%
Voice PSUs118.7132.1(13.4)(10.1)%
Total PSUs1,320.21,374.0(53.8)(3.9)%
Penetration
Data38.2 %39.2 %(1.0)%
Video5.1 %6.7 %(1.6)%
Voice4.3 %4.9 %(0.6)%
Share of Fourth Quarter Revenues
Residential data58.8 %55.8 %3.0 %
Business services18.4 %17.9 %0.5 %
Total77.3 %73.7 %3.6 %
ARPU - Fourth Quarter
Residential data(1)
$83.95$81.71$2.242.7 %
Residential video(1)
$143.78$138.56$5.223.8 %
Residential voice(1)
$36.24$35.69$0.551.5 %
Business services(2)
$246.35$249.78$(3.43)(1.4)%
Note: All totals, percentages and year-over-year changes are calculated using exact numbers. Minor differences may exist due to rounding.
(1)ARPU 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 PSUs added or subtracted as a result of an acquisition or divestiture occurring during the period, the associated ARPU values represent the applicable residential service revenues (excluding installation and activation fees) divided by the pro-rated average number of PSUs during such period.
(2)ARPU values represent quarterly business services revenues 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 business customer relationships added or subtracted as a result of an acquisition or divestiture occurring during the period, the associated ARPU values represent business services revenues divided by the pro-rated average number of business customer relationships during such period.

12
v3.24.0.1
Cover Page
Feb. 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 22, 2024
Entity Registrant Name Cable One, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-36863
Entity Tax Identification Number 13-3060083
Entity Address, Address Line One 210 E. Earll Drive
Entity Address, City or Town Phoenix
Entity Address, State or Province AZ
Entity Address, Postal Zip Code 85012
City Area Code 602
Local Phone Number 364-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol CABO
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001632127
Amendment Flag false
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