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Section 1: 8-K (FORM 8-K)

cabo20180228_8k.htm

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): March 1, 2018

 


 

Cable One, Inc.

 

(Exact name of registrant as specified in its charter)

 


 

Delaware

1-36863

13-3060083

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(IRS 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

 


 

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:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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 ☐

 

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.

 

 

 

 

Item 2.02

Results of Operations and Financial Condition.

 

On March 1, 2018, Cable One, Inc. issued a press release relating to its financial results for the fourth quarter and year ended December 31, 2017. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information contained in this Item 2.02 as well as in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

 

 

Item 9.01

Financial Statements and Exhibits.

 

Exhibit

 

Description

     

99.1

 

Press release issued by Cable One, Inc. on March 1, 2018.

 

 

 

 

SIGNATURE

 

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/ Kevin P. Coyle

 

 

 

Name:

Kevin P. Coyle

 

 

 

Title:

Senior Vice President and Chief Financial Officer

 

 

 

 

 

 

 

Date: March 1, 2018

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

ex_106327.htm

Exhibit 99.1

 

 

Cable ONE Reports Fourth Quarter and Full Year 2017 Results

 

March 1, 2018 Phoenix, Arizona (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, 2017.(1)

 

Full year 2017 highlights:

 

 

Net income was $234.0 million in 2017, an increase of 131.5% year-over-year. Net income includes a $113.0 million income tax benefit as a result of the 2017 Federal tax reform legislation. Adjusted EBITDA(2) was $443.1 million, an increase of 24.0% year-over-year. Net profit margin was 24.4% and Adjusted EBITDA Margin(2) was 46.2%.

 

 

Net income and Adjusted EBITDA results for 2017 include eight months of NewWave Communications (“NewWave”) operations and the favorable impact of a reduction in expense of $16.3 million due to a change in accounting for capitalized labor costs effective since the first quarter of 2017.

 

 

Without the contribution from NewWave operations, net income would have increased 123.8% to $226.3 million and Adjusted EBITDA would have increased 10.7% to $395.5 million. In addition, net profit margin would have been 27.2% and Adjusted EBITDA margin would have been 47.5%.

 

 

Excluding both the NewWave operations and the capitalized labor change, net income would have increased 113.8% to $216.2 million and Adjusted EBITDA would have increased 6.1% to $379.2 million. In addition, net profit margin would have been 26.0% and Adjusted EBITDA margin would have been 45.5%.

 

 

Net cash provided by operating activities was $324.5 million, an increase of 26.2% year-over-year. Adjusted EBITDA less capital expenditures(2) was $263.7 million, an increase of 16.4% compared to 2016.

 

 

Total revenues were $960.0 million, including a $127.3 million contribution from NewWave operations, compared to $819.6 million in 2016.

 

 

Residential data revenues increased 20.4% and business services revenues increased 30.7% year-over-year. Excluding the contribution from NewWave operations, residential data revenues increased 7.9% and business services revenues increased 11.8% compared to the prior year.

 

Fourth quarter 2017 highlights:

 

 

Net income was $143.2 million in the fourth quarter of 2017, an increase of 484.3% year-over-year. Net income includes a $113.0 million income tax benefit as a result of the 2017 Federal tax reform legislation. Adjusted EBITDA was $117.0 million, an increase of 26.8% year-over-year. Net profit margin was 55.5% and Adjusted EBITDA margin was 45.4%.

 

 

Net income and Adjusted EBITDA results in the fourth quarter of 2017 include NewWave operations and the favorable impact of a reduction in expense of $3.1 million due to the capitalized labor change.

 

 

Without the contribution from NewWave operations, net income would have increased 472.9% to $140.3 million and Adjusted EBITDA would have increased 6.5% to $98.2 million. In addition, net profit margin would have been 66.8% and Adjusted EBITDA margin would have been 46.7%.

 

1

 

 

 

Excluding both the NewWave operations and the capitalized labor change, net income would have increased 465.1% to $138.5 million and Adjusted EBITDA would have increased 3.2% to $95.1 million. In addition, net profit margin would have been 65.9% and Adjusted EBITDA margin would have been 45.3%.

 

 

Net cash provided by operating activities was $104.7 million, an increase of 75.7% year-over-year. Adjusted EBITDA less capital expenditures was $66.4 million, an increase of 17.2% compared to the fourth quarter of 2016.

 

 

Total revenues were $257.7 million, including a $47.6 million contribution from NewWave operations, compared to $206.7 million in the fourth quarter of 2016.

 

 

Residential data revenues increased 27.2% and business services revenues increased 37.2% year-over-year. Excluding the contribution from NewWave operations, residential data revenues increased 8.6% and business services revenues increased 9.9% compared to the fourth quarter of 2016.

 

(1) Comparative historical financial results have been revised. Refer to the section of this press release entitled “Revision to Previously Issued Financial Statements” for further discussion.

(2) 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 Metrics.” 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.

 

Full Year 2017 Financial Results Compared to Full Year 2016

 

Revenues increased $140.4 million, or 17.1%, to $960.0 million for 2017 due primarily to $127.3 million in revenues attributable to eight months of NewWave operations. For 2017 and 2016, residential data revenues comprised 43.2% and 42.0% of total revenues and business services revenues comprised 13.7% and 12.2% of total revenues, respectively. Excluding the $127.3 million contribution from NewWave operations in 2017, revenues increased $13.1 million from $819.6 million in the prior year.

 

Operating expenses (excluding depreciation and amortization) were $337.0 million in 2017 and increased $40.5 million, or 13.6%, compared to 2016. Operating expenses as a percentage of revenues were 35.1% for 2017 compared to 36.2% for 2016. Additional operating expenses attributable to the NewWave operations were $63.1 million for 2017. This increase was partially offset by a $12.7 million decrease in labor costs associated with the capitalized labor change, a $3.8 million decrease in programming costs resulting from fewer video subscribers, a $3.1 million decrease in backbone and internet connectivity fees, a $1.3 million decrease in insurance costs and a $1.0 million decrease in repair and maintenance costs. Excluding the impact of NewWave operations, operating expenses would have been $273.9 million in 2017, a decrease of $22.7 million, or 7.6%. Operating expenses as a percentage of revenues, excluding the impact of the NewWave operations, would have been 32.9% in 2017 compared to 36.2% in 2016.

 

Selling, general and administrative expenses increased $20.8 million, or 11.3%, to $204.8 million for 2017. Selling, general and administrative expenses as a percentage of revenues were 21.3% and 22.5% for 2017 and 2016, respectively. Additional selling, general and administrative expenses attributable to the NewWave operations were $16.6 million for 2017. Increases in severance costs of $4.4 million, deferred compensation expenses of $2.4 million and software maintenance costs of $2.1 million were partially offset by a $3.6 million decrease in labor costs associated with the capitalized labor change and a $1.8 million decrease in employee incentive costs. Excluding incremental expenses associated with the NewWave operations, selling, general and administrative expenses would have increased $4.2 million, or 2.2%, to $188.2 million for 2017. Selling, general and administrative expenses as a percentage of revenues, excluding the impact of the NewWave operations, would have been 22.6% in 2017 compared to 22.5% in 2016.

 

2

 

 

Depreciation and amortization increased $33.8 million, or 22.8%, to $181.6 million for 2017 including $32.2 million attributable to NewWave operations. The increase was due primarily to new assets placed in service in 2017 and 2016, including property, plant and equipment and amortizable intangible assets acquired as part of the NewWave acquisition, partially offset by assets that became fully depreciated during those periods. As a percentage of revenues, depreciation and amortization expense was 18.9% for 2017 compared to 18.0% for 2016.

 

Interest expense increased $16.6 million, or 55.1%, due primarily to additional outstanding debt that was incurred in 2017 to finance the NewWave acquisition.

 

Net income increased $132.9 million, or 131.5%, to $234.0 million in 2017 compared to $101.1 million in the prior year, which includes an income tax benefit of $113.0 million resulting from the enactment of Federal tax reform legislation in December 2017. Excluding the NewWave operations, net income would have increased 123.8% to $226.3 million in 2017. Without both the NewWave operations and the capitalized labor change, net income would have increased 113.8% to $216.2 million in 2017. Excluding the NewWave operations, the capitalized labor change and the adverse Hurricane Harvey impact, net income would have increased 115.9% to $218.2 million in 2017.

 

Adjusted EBITDA was $443.1 million and $357.4 million for 2017 and 2016, respectively. Adjusted EBITDA growth of 24.0% in 2017 includes the positive impact of the NewWave operations and the capitalized labor change. Without the contribution from NewWave operations, Adjusted EBITDA would have been $395.5 million and Adjusted EBITDA growth would have been 10.7% for 2017. Excluding both the NewWave operations and the capitalized labor change, Adjusted EBITDA would have been $379.2 million and Adjusted EBITDA growth would have been 6.1%. Excluding the NewWave operations, the capitalized labor change and the adverse Hurricane Harvey impact, Adjusted EBITDA would have been $381.1 million and Adjusted EBITDA growth would have been 6.6%.

 

Capital expenditures totaled $179.4 million and $130.8 million for 2017 and 2016, respectively. Adjusted EBITDA less capital expenditures for 2017 was $263.7 million, an increase of $37.2 million, or 16.4%, from the prior year. Excluding NewWave operations, capital expenditures would have been $149.1 million. Excluding both the NewWave operations and the capitalized labor change, capital expenditures would have been $132.8 million.

 

Fourth Quarter 2017 Financial Results Compared to Fourth Quarter 2016

 

Revenues increased $51.0 million, or 24.7%, to $257.7 million for the fourth quarter of 2017 due primarily to $47.6 million in revenues attributable to the NewWave operations. For the fourth quarter of 2017 and 2016, residential data revenues comprised 43.4% and 42.5% of total revenues and business services revenues comprised 14.2% and 12.9% of total revenues, respectively. Excluding the $47.6 million contribution from NewWave operations in the fourth quarter of 2017, revenues increased to $210.1 million from $206.7 million in the prior year quarter.

 

Operating expenses (excluding depreciation and amortization) were $92.2 million in the fourth quarter of 2017 and increased $19.6 million, or 27.0%, compared to the fourth quarter of 2016. Operating expenses as a percentage of revenues were 35.8% for the fourth quarter of 2017 compared to 35.1% for the year-ago quarter. Additional operating expenses attributable to the NewWave operations were $22.9 million for the fourth quarter of 2017. This increase was partially offset by a $3.0 million decrease in labor costs associated with the capitalized labor change and a $0.7 million decrease in backbone and internet connectivity fees. Excluding the impact of NewWave operations, operating expenses would have been $69.3 million in the fourth quarter of 2017, a decrease of $3.3 million, or 4.5% compared to the fourth quarter of 2016. Operating expenses as a percentage of revenues, excluding the impact of the NewWave operations, would have been 33.0% in the fourth quarter of 2017 compared to 35.1% in the fourth quarter of 2016.

 

Selling, general and administrative expenses increased $8.1 million, or 17.1%, to $55.4 million for the fourth quarter of 2017. Selling, general and administrative expenses as a percentage of revenues were 21.5% and 22.9% for the fourth quarter of 2017 and 2016, respectively. Additional selling, general and administrative expenses attributable to the NewWave operations were $5.9 million for the fourth quarter of 2017. Medical insurance costs increased $1.6 million, driven mainly by favorable results in the fourth quarter of 2016, and severance costs increased $1.5 million. These increases were partially offset by lower acquisition-related costs of $1.0 million resulting from the completion of the NewWave acquisition. Excluding incremental expenses associated with the NewWave operations, selling, general and administrative expenses would have increased $2.2 million, or 4.6%, to $49.5 million. Selling, general and administrative expenses as a percentage of revenues, excluding the impact of the NewWave operations, would have been 23.5% in the fourth quarter of 2017 compared to 22.9% in the fourth quarter of 2016.

 

3

 

 

Depreciation and amortization increased $8.4 million, or 21.4%, to $47.3 million for the fourth quarter of 2017 including $12.1 million attributable to the NewWave operations. The increase was due primarily to new assets placed in service since the fourth quarter of 2016, including property, plant and equipment and amortized intangible assets acquired as part of the NewWave acquisition, partially offset by assets that became fully depreciated since the fourth quarter of 2016. As a percentage of revenues, depreciation and amortization expense was 18.4% for the fourth quarter of 2017 compared to 18.9% for the fourth quarter of 2016.

 

Interest expense increased $5.9 million, or 77.3%, to $13.5 million for the fourth quarter of 2017 due primarily to additional outstanding debt that was incurred in 2017 to finance the NewWave acquisition.

 

Net income increased $118.7 million, or 484.3%, to $143.2 million in the fourth quarter of 2017 compared to $24.5 million in the prior year quarter, which includes an income tax benefit of $113.0 million resulting from the enactment of Federal tax reform legislation in December 2017. Excluding the impact of NewWave operations, net income would have increased 472.9% to $140.3 million. Without both the NewWave operations and the capitalized labor change, net income would have increased 465.1% to $138.5 million for the fourth quarter of 2017.

 

Adjusted EBITDA was $117.0 million and $92.2 million for the fourth quarter of 2017 and 2016, respectively. Adjusted EBITDA growth of 26.8% in the fourth quarter of 2017 includes the positive impact of the NewWave operations and the capitalized labor change. Without the contribution from NewWave operations, Adjusted EBITDA would have been $98.2 million and Adjusted EBITDA growth would have been 6.5% for the fourth quarter of 2017. Excluding both the NewWave operations and the capitalized labor change, Adjusted EBITDA would have been $95.1 million and Adjusted EBITDA growth would have been 3.2%.

 

Capital expenditures totaled $50.5 million and $35.5 million for the fourth quarter of 2017 and 2016, respectively. Adjusted EBITDA less capital expenditures for the fourth quarter of 2017 was $66.4 million, an increase of $9.7 million, or 17.2%, from the prior year quarter. Excluding NewWave operations, capital expenditures would have been $39.3 million. Excluding both the NewWave operations and the capitalized labor change, capital expenditures would have been $36.3 million.

 

Liquidity and Capital Resources

 

At December 31, 2017, the Company had $161.8 million of cash and cash equivalents on hand, compared to $138.0 million at December 31, 2016. The Company’s debt balance, excluding the effect of unamortized debt issuance costs, was $1.2 billion at December 31, 2017 and $545.3 million at December 31, 2016. The increase in the Company’s debt balance was primarily due to the $750 million of term loans incurred in connection with the NewWave acquisition, of which $744.4 million was outstanding at December 31, 2017. The Company also had $196.9 million available for borrowing under its revolving credit facility as of December 31, 2017. As a result of the 2017 Federal tax reform legislation, the Company expects to realize approximately $38 million to $42 million of cash tax savings in 2018.

 

4

 

 

Revision to Previously Issued Financial Statements

 

Commencing in the first quarter of 2017, the Company changed its accounting for the capitalization of certain internal labor and related costs associated with construction and customer installation activities. The Company initially classified the change as a change in accounting estimate. During the fourth quarter of 2017, the Company determined that a portion of what had previously been reflected as a change in estimate should have been categorized as a change in accounting principle and accounted for prospectively upon adoption given that it was impracticable to apply retrospectively. In addition, the Company identified an error associated with its historical accounting for certain categories of internal labor and related costs, which resulted in an undercapitalization of labor costs in its previously issued financial statements. Although the Company has determined such error to be immaterial to its previously issued financial statements, the cumulative effect of the error would be material if corrected in the current year. Therefore, the Company has revised its historical financial statements to properly reflect the impact of the labor capitalization, including the related impact to depreciation expense and income tax. In connection with this revision, the Company also included other immaterial adjustments for 2016. The financial results included in this press release reflect the impact of the revision. Refer to various tables for reconciliations between previously reported and revised amounts for the years ended December 31, 2016 and 2015 and for the quarters ended March 31, 2017 and 2016, June 30, 2017 and 2016, September 30, 2017 and 2016, and December 31, 2016. Additional information regarding the revision will be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

 

Conference Call

 

Cable ONE will host a conference call with the financial community to discuss results for the fourth quarter and full year 2017 on Thursday, March 1, 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/10116517. 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, March 1, 2018, until Thursday, March 15, 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 financial statements and footnotes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, 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 U.S. Securities and Exchange Commission (the “SEC”). 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 Metrics

 

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 (benefit), depreciation and amortization, equity-based compensation expense, severance expense, (gain) loss on deferred compensation, acquisition-related costs, (gain) loss on disposal of assets, other (income) expense, net, 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.

 

5

 

 

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 (benefit), changes in operating assets and liabilities, 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 calculation under the Company’s credit facilities and outstanding 5.75% senior unsecured notes due 2022 to determine compliance with the covenants contained in the facilities and ability to take certain actions under the indenture governing the notes. For the purpose of calculating compliance with the leverage ratio covenants in the Company’s debt instruments, the Company uses a measure similar to Adjusted EBITDA, as presented. 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, Inc. (NYSE: CABO) is among the 10 largest cable companies in the United States and a leading broadband communications provider. Serving nearly 800,000 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.

 

Contacts:                    

 

Trish Niemann Kevin Coyle
Corporate Communications Director Chief Financial Officer
602-364-6372
602-364-6505

 

6

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This communication contains “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:

 

 

the effect of our acquisition of NewWave on our ability to retain and hire key personnel and to maintain relationships with customers, suppliers and other business partners;

 

the potential diversion of senior management’s attention from our ongoing operations due to the acquisition of NewWave;

 

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;

 

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;

 

changes in broadcast carriage regulations;

 

our ability to renew cable system franchises;

 

increases in pole attachment costs;

 

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;

 

the failure to meet earnings expectations;

 

the adequacy of our risk management framework;

 

changes in tax and other laws and regulations;

 

changes in our estimates of the impact of the 2017 Federal tax reform legislation;

 

changes in GAAP or other applicable accounting policies; 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 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.

 

7

 

 

CABLE ONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

 

   

Year Ended December 31,

                 

(dollars in thousands, except per share and share data)

 

2017

   

2016

   

$ Change

   

% Change

 

Revenues

                               

Residential data

  $ 414,525     $ 344,184     $ 70,341       20.4 %

Residential video

    332,536       294,781       37,755       12.8 %

Residential voice

    43,733       42,949       784       1.8 %

Business services

    131,155       100,311       30,844       30.7 %

Advertising sales

    24,824       27,496       (2,672 )     (9.7 )%

Other

    13,256       9,904       3,352       33.8 %

Total Revenues

    960,029       819,625       140,404       17.1 %

Costs and Expenses

                               

Operating (excluding depreciation and amortization)

    337,040       296,577       40,463       13.6 %

Selling, general and administrative

    204,799       184,024       20,775       11.3 %

Depreciation and amortization

    181,619       147,839       33,780       22.8 %

(Gain) loss on disposal of assets

    574       2,821       (2,247 )     (79.7 )%

Total operating costs and expenses

    724,032       631,261       92,771       14.7 %

Income from operations

    235,997       188,364       47,633       25.3 %

Interest expense

    (46,864 )     (30,221 )     (16,643 )     55.1 %

Other income (expense), net

    668       5,121       (4,453 )     (87.0 )%

Income before income taxes

    189,801       163,264       26,537       16.3 %

Income tax provision (benefit)

    (44,227 )     62,162       (106,389 )     (171.1 )%

Net income

  $ 234,028     $ 101,102     $ 132,926       131.5 %
                                 

Other comprehensive gain (loss), net of tax

    94       111       (17 )     (15.3 )%

Comprehensive income

  $ 234,122     $ 101,213     $ 132,909       131.3 %
                                 

Net income per common share:

                               

Basic

  $ 41.20     $ 17.60     $ 23.60       134.1 %

Diluted

  $ 40.72     $ 17.52     $ 23.20       132.4 %

Weighted average common shares outstanding:

                               

Basic

    5,680,073       5,743,568                  

Diluted

    5,747,037       5,770,960                  

 

8

 

 

CABLE ONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

 

   

Three Months Ended December 31,

                 

(dollars in thousands, except per share and share data)

 

2017

   

2016

   

$ Change

   

% Change

 

Revenues

                               

Residential data

  $ 111,829     $ 87,916     $ 23,913       27.2 %

Residential video

    86,608       72,071       14,537       20.2 %

Residential voice

    11,184       10,216       968       9.5 %

Business services

    36,482       26,587       9,895       37.2 %

Advertising sales

    7,348       7,417       (69 )     (0.9 )%

Other

    4,263       2,520       1,743       69.2 %

Total Revenues

    257,714       206,727       50,987       24.7 %

Costs and Expenses

                               

Operating (excluding depreciation and amortization)

    92,213       72,628       19,585       27.0 %

Selling, general and administrative

    55,381       47,285       8,096       17.1 %

Depreciation and amortization

    47,350       38,993       8,357       21.4 %

(Gain) loss on disposal of assets

    3,752       1,195       2,557       214.0 %

Total operating costs and expenses

    198,696       160,101       38,595       24.1 %

Income from operations

    59,018       46,626       12,392       26.6 %

Interest expense

    (13,457 )     (7,588 )     (5,869 )     77.3 %

Other income (expense), net

    425       99       326       NM  

Income before income taxes

    45,986       39,137       6,849       17.5 %

Income tax provision (benefit)

    (97,167 )     14,638       (111,805 )     NM  

Net income

  $ 143,153     $ 24,499     $ 118,654       NM  
                                 

Other comprehensive gain (loss), net of tax

    89       29       60       206.9 %

Comprehensive income

  $ 143,242     $ 24,528     $ 118,714       NM  
                                 

Net income per common share:

                               

Basic

  $ 25.18     $ 4.29     $ 20.89       NM  

Diluted

  $ 24.89     $ 4.25     $ 20.64       NM  

Weighted average common shares outstanding:

                               

Basic

    5,684,785       5,714,862                  

Diluted

    5,750,420       5,760,834                  

 


NM  =  Not meaningful.

 

 

9

 

 

CABLE ONE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands, except par value and share data)

 

December 31, 2017

   

December 31, 2016

 

Assets

               

Current Assets:

               

Cash and cash equivalents

  $ 161,752     $ 138,040  

Accounts receivable, net

    51,141       33,049  

Income tax receivable

    21,331       4,547  

Prepaid assets

    8,160       10,824  

Total Current Assets

    242,384       186,460  

Property, plant and equipment, net

    831,892       642,915  

Intangibles, net

    965,745       497,480  

Goodwill

    172,129       84,928  

Other assets

    6,179       9,306  

Total Assets

  $ 2,218,329     $ 1,421,089  
                 

Liabilities and Stockholders' Equity

               

Current Liabilities:

               

Accounts payable and accrued liabilities

  $ 117,963     $ 82,703  

Deferred revenue

    38,266       22,190  

Long-term debt – current portion

    14,375       6,250  

Total Current Liabilities

    170,604       111,143  

Long-term debt

    1,160,682       530,886  

Deferred income taxes

    205,636       285,349  

Accrued compensation and other liabilities

    9,991       24,434  

Total Liabilities

    1,546,913       951,812  
                 

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 5,731,442 and 5,708,223 shares outstanding as of December 31, 2017 and 2016, respectively)

    60       59  

Additional paid-in capital

    28,412       17,669  

Retained earnings

    723,354       526,542  

Accumulated other comprehensive loss

    (352 )     (446 )

Treasury stock, at cost (156,457 and 179,676 shares held as of December 31, 2017 and 2016, respectively)

    (80,058 )     (74,547 )

Total Stockholders' Equity

    671,416       469,277  

Total Liabilities and Stockholders' Equity

  $ 2,218,329     $ 1,421,089  

 

10

 

 

CABLE ONE, INC.

RECONCILIATIONS OF NON-GAAP MEASURES

(Unaudited)

 

   

Year Ended December 31,

                 

(dollars in thousands)

 

2017

   

2016

   

$ Change

   

% Change

 

Net income (1)

  $ 234,028     $ 101,102     $ 132,926       131.5 %
                                 

Net profit margin

    24.4 %     12.3 %                
                                 

Plus:   Interest expense

    46,864       30,221       16,643       55.1 %

Income tax provision (benefit)

    (44,227 )     62,162       (106,389 )     (171.1 )%

Depreciation and amortization

    181,619       147,839       33,780       22.8 %

Equity-based compensation expense

    10,743       12,298       (1,555 )     (12.6 )%

Severance expense

    5,461       1,012       4,449       NM  

(Gain) loss on deferred compensation

    2,753       312       2,441       NM  

Acquisition-related costs

    5,942       4,719       1,223       25.9 %

(Gain) loss on disposal of assets

    574       2,821       (2,247 )     (79.7 )%

Other (income) expense, net

    (668 )     (5,121 )     4,453       (87.0 )%

Adjusted EBITDA (1)

  $ 443,089     $ 357,365     $ 85,724       24.0 %
                                 

Adjusted EBITDA margin

    46.2 %     43.6 %                
                                 

Less:  Capital expenditures (1)

    179,363       130,824       48,539       37.1 %

Adjusted EBITDA less capital expenditures

  $ 263,726     $ 226,541     $ 37,185       16.4 %

 


NM  =  Not meaningful.

 

(1)

Net income, Adjusted EBITDA and capital expenditures results for 2017 include eight months of NewWave operations. Net income and Adjusted EBITDA for 2017 include the favorable impact of a reduction in expense, and capital expenditures include the unfavorable impact in additional expenditures, of $16.3 million due to the capitalized labor change. Without the contribution from NewWave operations, net income for 2017 would have increased 123.8% to $226.3 million, Adjusted EBITDA would have increased 10.7% to $395.5 million and capital expenditures would have been $149.1 million. Excluding both the NewWave operations and the capitalized labor change, net income for 2017 would have increased 113.8% to $216.2 million, Adjusted EBITDA would have increased 6.1% to $379.2 million and capital expenditures would have been $132.8 million.

 

   

Year Ended December 31,

                 

(dollars in thousands)

 

2017

   

2016

   

$ Change

   

% Change

 

Net cash provided by operating activities

  $ 324,486     $ 257,121     $ 67,365       26.2 %

Capital expenditures

    (179,363 )     (130,824 )     (48,539 )     37.1 %

Interest expense

    46,864       30,221       16,643       55.1 %

Amortization of debt issuance costs

    (3,174 )     (1,642 )     (1,532 )     93.3 %

Income tax provision (benefit)

    (44,227 )     62,162       (106,389 )     (171.1 )%

Changes in operating assets and liabilities

    19,908       2,573       17,335       NM  

Deferred income taxes

    86,357       1,090       85,267       NM  

(Gain) loss on deferred compensation

    2,753       312       2,441       NM  

Acquisition-related costs

    5,942       4,719       1,223       25.9 %

Excess income tax benefits for equity-based compensation activities

    -       822       (822 )     (100.0 )%

Severance expense

    5,461       1,012       4,449       NM  

Gain on sale of cable system

    -       4,096       (4,096 )     (100.0 )%

Write-off of debt issuance costs

    (613 )     -       (613 )     NM  

Other (income) expense, net

    (668 )     (5,121 )     4,453       (87.0 )%

Adjusted EBITDA less capital expenditures

  $ 263,726     $ 226,541     $ 37,185       16.4 %

 


NM  =  Not meaningful.

 

11

 

 

CABLE ONE, INC.

RECONCILIATIONS OF NON-GAAP MEASURES

(Unaudited)

 

   

Three Months Ended December 31,

                 

(dollars in thousands)

 

2017

   

2016

   

$ Change

   

% Change

 

Net income (1)

  $ 143,153     $ 24,499     $ 118,654       NM  
                                 

Net profit margin

    55.5 %     11.9 %                
                                 

Plus:   Interest expense

    13,457       7,588       5,869       77.3 %

Income tax provision (benefit)

    (97,167 )     14,638       (111,805 )     NM  

Depreciation and amortization

    47,350       38,993       8,357       21.4 %

Equity-based compensation expense

    2,822       2,645       177       6.7 %

Severance expense

    2,512       1,012       1,500       148.2 %

(Gain) loss on deferred compensation

    839       74       765       NM  

Acquisition-related costs

    662       1,663       (1,001 )     (60.2 )%

(Gain) loss on disposal of assets

    3,752       1,195       2,557       214.0 %

Other (income) expense, net

    (425 )     (99 )     (326 )     NM  

Adjusted EBITDA (1)

  $ 116,955     $ 92,208     $ 24,747       26.8 %
                                 

Adjusted EBITDA margin

    45.4 %     44.6 %                
                                 

Less:  Capital expenditures (1)

    50,533       35,514       15,019       42.3 %

Adjusted EBITDA less capital expenditures

  $ 66,422     $ 56,694     $ 9,728       17.2 %

 


NM  =  Not meaningful.

(1)

Net income, Adjusted EBITDA and capital expenditures results for the fourth quarter of 2017 include NewWave operations. Net income and Adjusted EBITDA for the fourth quarter of 2017 include the favorable impact of a reduction in expense, and capital expenditures include the unfavorable impact in additional expenditures, of $3.1 million due to the capitalized labor change. Without the contribution from NewWave operations, net income for the fourth quarter of 2017 would have increased 472.9% to $140.3 million, Adjusted EBITDA would have increased 6.5% to $98.2 million and capital expenditures would have been $39.3 million. Excluding both the NewWave operations and the capitalized labor change, net income for the fourth quarter of 2017 would have increased 465.1% to $138.5 million, Adjusted EBITDA would have increased 3.2% to $95.1 million and capital expenditures would have been $36.3 million.

 

 

   

Three Months Ended December 31,

                 

(dollars in thousands)

 

2017

   

2016

   

$ Change

   

% Change

 

Net cash provided by operating activities

  $ 104,697     $ 59,583     $ 45,114       75.7 %

Capital expenditures

    (50,533 )     (35,514 )     (15,019 )     42.3 %

Interest expense

    13,457       7,588       5,869       77.3 %

Amortization of debt issuance costs

    (991 )     (409 )     (582 )     142.3 %

Income tax provision (benefit)

    (97,167 )     14,638       (111,805 )     NM  

Changes in operating assets and liabilities

    (2,804 )     6,507       (9,311 )     (143.1 )%

Deferred income taxes

    96,175       898       95,277       NM  

(Gain) loss on deferred compensation

    839       74       765       NM  

Acquisition-related costs

    662       1,663       (1,001 )     (60.2 )%

Excess income tax benefits for equity-based compensation activities

    -       822       (822 )     (100.0 )%

Severance expense

    2,512       1,012       1,500       148.2 %

Gain on sale of cable system

    -       (69 )     69       (100.0 )%

Other (income) expense, net

    (425 )     (99 )     (326 )     NM  

Adjusted EBITDA less capital expenditures

  $ 66,422     $ 56,694     $ 9,728       17.2 %

 


NM  =  Not meaningful.

 

12

 

 

CABLE ONE, INC.

OPERATING STATISTICS

(Unaudited)

 

   

As of December 31,

   

Year-Over-Year

 
   

2017

   

2016

   

% Change

 
   

Legacy

CABO

   

NewWave

   

Combined

   

Legacy

CABO

   

Legacy

CABO

   

Combined

 

Homes Passed

    1,694,886       450,691       2,145,577       1,669,614       1.5 %     28.5 %
                                                 

Total Customers

    651,243       146,294       797,537       657,222       (0.9 )%     21.3 %

Non-video

    367,987       67,100       435,087       336,419       9.4 %     29.3 %

Percent of total

    56.5 %     45.9 %     54.6 %     51.2 %                
                                                 

Residential Customers

    595,886       135,125       731,011       605,699       (1.6 )%     20.7 %
                                                 

Data PSUs

    476,046       108,808       584,854       469,053       1.5 %     24.7 %

Video PSUs

    270,003       76,709       346,712       306,563       (11.9 )%     13.1 %

Voice PSUs

    88,424       21,589       110,013       97,724       (9.5 )%     12.6 %

Total residential PSUs

    834,473       207,106       1,041,579       873,340       (4.5 )%     19.3 %
                                                 

Business Customers

    55,357       11,169       66,526       51,523       7.4 %     29.1 %
                                                 

Data PSUs

    48,889       9,410       58,299       44,855       9.0 %     30.0 %

Video PSUs

    12,998       4,178       17,176       13,683       (5.0 )%     25.5 %

Voice PSUs

    20,028       4,840       24,868       18,087       10.7 %     37.5 %

Total business PSUs

    81,915       18,428       100,343       76,625       6.9 %     31.0 %
                                                 

Penetration

                                               

Data

    31.0 %     26.2 %     30.0 %     30.8 %     0.2 %     (0.8 )%

Video

    16.7 %     17.9 %     17.0 %     19.2 %     (2.5 )%     (2.2 )%

Voice

    6.4 %     5.9 %     6.3 %     6.9 %     (0.5 )%     (0.6 )%
                                                 
Share of Fourth Quarter Revenues                                                

Residential data

    45.4 %     34.5 %     43.4 %     42.5 %     2.9 %     0.9 %

Business services

    13.9 %     15.3 %     14.2 %     12.9 %     1.0 %     1.3 %

Total

    59.3 %     49.8 %     57.6 %     55.4 %     3.9 %     2.2 %
                                                 

ARPU - Fourth Quarter

                                               

Residential data (1)

  $ 67.14     $ 49.95     $ 63.92     $ 62.64       7.2 %     2.0 %

Residential video (1)

  $ 81.93     $ 84.10     $ 82.42     $ 77.23       6.1 %     6.7 %

Residential voice (1)

  $ 33.33     $ 35.17     $ 33.69     $ 34.36       (3.0 )%     (1.9 )%

Business services (2)

  $ 178.23     $ 217.64     $ 184.90     $ 173.41       2.8 %     6.6 %
                                                 

Number of Employees

    1,802       508       2,310       1,877       (4.0 )%     23.1 %

 

 


(1)

Average monthly per unit values represent the applicable residential service revenues divided by the corresponding average of the number of PSUs at the beginning and end of each period.

(2)

Average monthly per unit values represent business services revenues divided by the average of the number of business customer relationships at the beginning and end of each period.

 

13

 

 

 

 

CABLE ONE, INC.

REVISION TO PREVIOUSLY ISSUED ANNUAL FINANCIAL STATEMENTS

(Unaudited)

 

 

 

As of and for the Year Ended December 31, 2016

 
(in thousands, except per share data)  

As Reported

   

Adjustment

   

As Revised

 

Consolidated Balance Sheet Information

                       

Accounts receivable, net

  $ 32,526     $ 523     $ 33,049  

Property, plant and equipment, net

    619,621       23,294       642,915  

Total Assets

    1,397,271       23,818       1,421,089  

Deferred income taxes

    276,297       9,052       285,349  

Total Liabilities

    942,760       9,052       951,812  

Retained earnings

    511,776       14,766       526,542  

Total Stockholders’ Equity

  $ 454,511     $ 14,766     $ 469,277  
Consolidated Statement of Operations and Comprehensive Income Information                        

Costs and Expenses

                       

Operating (excluding depreciation and amortization)

  $ 301,617     $ (5,040 )   $ 296,577  

Selling, general and administrative

    184,797       (773 )     184,024  

Depreciation and amortization

    142,183       5,656       147,839  

Total operating costs and expenses

    631,418       (157 )     631,261  

Income from operations

    188,207       157       188,364  

Income before income taxes

    163,107       157       163,264  

Income tax provision (benefit)

    64,168       (2,006 )     62,162  

Net income

  $ 98,939     $ 2,163     $ 101,102  

Comprehensive income

  $ 99,050     $ 2,163     $ 101,213  

Net income per common share:

                       

Basic

  $ 17.23     $ 0.37     $ 17.60  

Diluted

  $ 17.14     $ 0.38     $ 17.52  

Consolidated Statement of Cash Flows Information

                       

Net cash provided by operating activities

  $ 251,831     $ 5,290     $ 257,121  

Net cash used in investing activities

  $ (136,317 )   $ (5,290 )   $ (141,607 )

 

   

For the Year Ended December 31, 2015

 
   

As Reported

   

Adjustment

   

As Revised

 
Consolidated Statement of Operations and Comprehensive Income Information                        

Costs and Expenses

                       

Operating (excluding depreciation and amortization)

  $ 310,323     $ (5,486 )   $ 304,837  

Selling, general and administrative

    193,964       (217 )     193,747  

Depreciation and amortization

    140,635       3,868       144,503  

Total operating costs and expenses

    645,524       (1,835 )     643,689  

Income from operations

    161,742       1,835       163,577  

Income before income taxes

    145,420       1,835       147,255  

Income tax provision (benefit)

    56,387       (954 )     55,433  

Net income

  $ 89,033     $ 2,789     $ 91,822  

Comprehensive income

  $ 88,476     $ 2,789     $ 91,265  

Net income per common share:

                       

Basic

  $ 15.21     $ 0.48     $ 15.69  

Diluted

  $ 15.19     $ 0.48     $ 15.67  

Consolidated Statement of Cash Flows Information

                       

Net cash provided by operating activities

  $ 246,413     $ 5,703     $ 252,116  

Net cash used in investing activities

  $ (155,225 )   $ (5,703 )   $ (160,928 )

 

14

 

 

CABLE ONE, INC.

REVISION TO PREVIOUSLY ISSUED 2017 QUARTERLY FINANCIAL STATEMENTS

(Unaudited)

 

 

 

Quarter Ended March 31, 2017

 
(in thousands, except per share data)  

As Reported

   

Adjustment

   

As Revised

 

Revenues

  $ 207,427     $ -     $ 207,427  

Operating costs and expenses

    147,074       1,655       148,729  

Income from operations

    60,353       (1,655 )     58,698  

Net income

    33,215       (1,026 )     32,189  
                         

Net income per common share:

                       

Basic

  $ 5.86     $ (0.18 )   $ 5.68  

Diluted

  $ 5.80     $ (0.18 )   $ 5.62  

 

   

Quarter Ended June 30, 2017

 
   

As Reported

   

Adjustment

   

As Revised

 

Revenues

  $ 241,042     $ -     $ 241,042  

Operating costs and expenses

    182,395       1,132       183,527  

Income from operations

    58,647       (1,132 )     57,515  

Net income

    28,576       (702 )     27,874  
                         

Net income per common share:

                       

Basic

  $ 5.03     $ (0.12 )   $ 4.91  

Diluted

  $ 4.97     $ (0.12 )   $ 4.85  

 

   

Quarter Ended September 30, 2017

 
   

As Reported

   

Adjustment

   

As Revised

 

Revenues

  $ 253,846     $ -     $ 253,846  

Operating costs and expenses

    191,948       1,132       193,080  

Income from operations

    61,898       (1,132 )     60,766  

Net income

    31,514       (702 )     30,812  
                         

Net income per common share:

                       

Basic

  $ 5.55     $ (0.12 )   $ 5.43  

Diluted

  $ 5.48     $ (0.12 )   $ 5.36  

 

15

 

 

CABLE ONE, INC.

REVISION TO PREVIOUSLY ISSUED 2016 QUARTERLY FINANCIAL STATEMENTS

(Unaudited)

 

 

 

Quarter Ended March 31, 2016

 
(in thousands, except per share data)  

As Reported

   

Adjustment

   

As Revised

 

Revenues

  $ 202,805     $ -     $ 202,805  

Operating costs and expenses

    155,422       (1,274 )     154,148  

Income from operations

    47,383       1,274       48,657  

Net income

    27,044       (1,256 )     25,788  
                         

Net income per common share:

                       

Basic

  $ 4.67     $ (0.22 )   $ 4.45  

Diluted

  $ 4.65     $ (0.21 )   $ 4.44  

 

   

Quarter Ended June 30, 2016

 
   

As Reported

   

Adjustment

   

As Revised

 

Revenues

  $ 204,557     $ -     $ 204,557  

Operating costs and expenses

    154,000       419       154,419  

Income from operations

    50,557       (419 )     50,138  

Net income

    26,633       (260 )     26,373  
                         

Net income per common share:

                       

Basic

  $ 4.64     $ (0.05 )   $ 4.59  

Diluted

  $ 4.62     $ (0.05 )   $ 4.57  

 

   

Quarter Ended September 30, 2016

 
   

As Reported

   

Adjustment

   

As Revised

 

Revenues

  $ 205,536     $ -     $ 205,536  

Operating costs and expenses

    161,716       878       162,594  

Income from operations

    43,820       (878 )     42,942  

Net income

    20,874       3,567       24,441  
                         

Net income per common share:

                       

Basic

  $ 3.65     $ 0.62     $ 4.27  

Diluted

  $ 3.63     $ 0.62     $ 4.25  

 

   

Quarter Ended December 31, 2016

 
   

As Reported

   

Adjustment

   

As Revised

 

Revenues

  $ 206,727     $ -     $ 206,727  

Operating costs and expenses

    160,280       (179 )     160,101  

Income from operations

    46,447       179       46,626  

Net income

    24,388       111       24,499  
                         

Net income per common share:

                       

Basic

  $ 4.27     $ 0.02     $ 4.29  

Diluted

  $ 4.23     $ 0.02     $ 4.25  

 

16

 

 

CABLE ONE, INC.

REVISION TO 2016 RECONCILIATION OF NON-GAAP MEASURES

(Unaudited)

 

   

For the Year Ended December 31, 2016

 

(in thousands)

 

As Reported

   

Adjustment

   

As Revised

 

Net income

  $ 98,939     $ 2,163     $ 101,102  

Income tax provision (benefit)

    64,168       (2,006 )     62,162  

Depreciation and amortization

    142,183       5,656       147,839  

Adjusted EBITDA

  $ 351,552     $ 5,813     $ 357,365  

 

 

17

 

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