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

cabo20181030_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): November 7, 2018

___________________________

 

Cable One, Inc.

 

(Exact name of registrant as specified in its charter)

___________________________

 

Delaware

001-36863

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 November 7, 2018, Cable One, Inc. issued a press release relating to its unaudited financial results for the third quarter of 2018. 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 November 7, 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/ Peter N. Witty

 

 

 

Name:

Peter N. Witty

 

 

 

Title:

Senior Vice President, General Counsel and Secretary

 

 

 

 

 

 

Date: November 7, 2018

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Section 2: EX-99.1 (EXHIBIT 99.1)

ex_127019.htm

Exhibit 99.1

 

 

 

Cable ONE Reports Third Quarter 2018 Results

 

November 7, 2018 – Phoenix, Arizona – (BUSINESS WIRE) – Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable ONE”) today reported financial and operating results for the quarter ended September 30, 2018.

 

Third Quarter 2018 Highlights:

 

 

●

Residential data and business services data PSUs totaled 660,799 at September 30, 2018 compared to 653,876 at June 30, 2018, an increase of 6,923, or 1.1%. Combined residential data and business services data PSUs increased 23,146, or 3.6%, year-over-year.
     
  ● Total revenues were $268.3 million in the third quarter of 2018 compared to $253.8 million in the third quarter of 2017, an increase of 5.7%. Residential data revenues increased 13.0% and business services revenues increased 12.6% year-over-year.
     
 

●

Net income was $38.3 million in the third quarter of 2018, an increase of 24.0% year-over-year. Adjusted EBITDA(1) was $122.7 million, an increase of 6.1% year-over-year. Net profit margin was 14.3% and Adjusted EBITDA margin(1) was 45.7%.
     
 

●

Net cash provided by operating activities was $111.0 million in the third quarter of 2018, an increase of 24.8% year-over-year. Adjusted EBITDA less capital expenditures(1) was $54.4 million in the third quarter of 2018 compared to $63.2 million in the third quarter of 2017, with the decrease due primarily to the timing of capital spending.

 

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

 

Third Quarter 2018 Financial Results Compared to Third Quarter 2017

 

Revenues increased $14.4 million, or 5.7%, to $268.3 million for the third quarter of 2018, driven primarily by residential data and business services revenue growth, partially offset by decreases in residential video and voice revenues. For the third quarter of 2018 and 2017, residential data revenues comprised 46.3% and 43.2% of total revenues and business services revenues comprised 14.8% and 13.9% of total revenues, respectively.

 

Operating expenses (excluding depreciation and amortization) were $92.0 million in the third quarter of 2018 compared to $91.9 million the third quarter of 2017. As a percentage of revenues, operating expenses were 34.3% for the third quarter of 2018 compared to 36.2% for the year-ago quarter.

 

Selling, general and administrative expenses were $59.4 million for the third quarter of 2018 and increased $7.6 million, or 14.7%, compared to the third quarter of 2017. Selling, general and administrative expenses as a percentage of revenues were 22.2% and 20.4% for the third quarter of 2018 and 2017, respectively. The increase was primarily attributable to higher marketing expenses of $3.9 million, system conversion costs of $1.7 million, higher net compensation expenses of $0.8 million and higher insurance expenses of $0.8 million.

 

Depreciation and amortization expense was $50.4 million for the third quarter of 2018 and increased $3.7 million, or 7.9%, compared to the third quarter of 2017. The increase was due primarily to new assets placed in service since the third quarter of 2017, partially offset by assets that became fully depreciated since the third quarter of 2017. We recognized $3.1 million and $2.5 million of net loss on asset disposals during the third quarter of 2018 and 2017, respectively.

 

1
 

 

Interest expense increased $1.4 million, or 10.3%, to $15.5 million, driven by an increase in interest rates year-over-year.

 

Income tax provision decreased $5.2 million, or 32.1%, to $11.0 million in the third quarter of 2018 primarily as a result of the 2017 Federal tax reform legislation.

 

Net income increased $7.4 million, or 24.0%, to $38.3 million in the third quarter of 2018 compared to $30.9 million in the prior year quarter.

 

Adjusted EBITDA was $122.7 million and $115.6 million for the third quarter of 2018 and 2017, respectively, an increase of 6.1%. Capital expenditures totaled $68.3 million and $52.4 million for the third quarter of 2018 and 2017, respectively. Adjusted EBITDA less capital expenditures for the third quarter of 2018 was $54.4 million, a decrease of $8.8 million, or 14.0%, from the prior year quarter. The decrease in Adjusted EBITDA less capital expenditures was due primarily to the timing of capital spending in the current year.

 

Liquidity and Capital Resources

 

At September 30, 2018, the Company had $236.9 million of cash and cash equivalents on hand, compared to $161.8 million at December 31, 2017. The Company’s debt balance was approximately $1.2 billion at both September 30, 2018 and December 31, 2017. The Company also had $195.9 million available for borrowing under its revolving credit facility as of September 30, 2018.

 

Conference Call

 

Cable ONE will host a conference call with the financial community to discuss results for the third quarter of 2018 on Wednesday, November 7, 2018, at 5 p.m. Eastern Time (ET).

 

Shareholders, analysts and other interested parties may register for the conference in advance at http://dpregister.com/10125489. 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 5 p.m. ET.

 

A replay of the call will be available from Wednesday, November 7, 2018, until Wednesday, November 21, 2018, on the Cable ONE Investor Relations website.

 

Additional Information Available on Website

 

The information in this press release should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, 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 Measures

 

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

 

2
 

 

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

 

“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided by total revenues.

 

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

 

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

 

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

 

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

 

About Cable ONE

 

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

 

Contacts

 

Trish Niemann Steven Cochran
Corporate Communications Director Chief Financial Officer
602-364-6372 602-364-6210

 

3
 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This communication may contain “forward-looking statements” that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about the cable industry and our business, 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. Our actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Important factors that could cause our actual results to differ materially from those in our forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors:

 

 

●

uncertainties as to our ability and the amount of time necessary to realize the expected synergies and other benefits of the acquisition of NewWave Communications ("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 products;
 

●

increases in programming costs and retransmission fees;
 

●

our ability to obtain hardware, software and operational support from vendors;
 

●

the effects of any new significant acquisitions by us;
 

●

adverse economic conditions;
 

●

the integrity and security of our network and information systems;
 

●

the impact of possible security breaches and other disruptions, including cyber-attacks;
 

●

our failure to obtain necessary intellectual and proprietary rights to operate our business and the risk of intellectual property claims and litigation against us;
 

●

our ability to retain key employees;
 

●

changing and additional regulation of our data, video and voice services, including legislative and regulatory efforts to impose new legal requirements on our data services;
 

●

our ability to renew cable system franchises;
 

●

increases in pole attachment costs;
 

●

changes in local government franchising authority and broadcast carriage regulations;
 

●

the potential adverse effect of our indebtedness on our business, financial condition or results of operations and cash flows;
 

●

the possibility that interest rates will rise, causing our obligations to service our variable rate indebtedness to increase significantly;
 

●

our ability to incur future indebtedness;
 

●

fluctuations in our stock price;
 

●

our ability to continue to pay dividends;
 

●

dilution from equity awards and potential stock issuances in connection with acquisitions;
 

●

provisions in our charter, by-laws and Delaware law that could discourage takeovers;
 

●

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

●

changes in GAAP or other applicable accounting policies;
 

●

the outcome of our efforts to complete the remediation of the material weakness in our internal control over financial reporting related to the NewWave billing system by the end of 2018; and
 

●

the other risks and uncertainties detailed in the section titled “Risk Factors” in our latest Annual Report on Form 10-K as filed with the 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, except as required by law, to update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.

 

4
 

 

CABLE ONE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

 

   

Three Months Ended September 30,

                  

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

  

2018

    

2017

    

$ Change

    

% Change

  
Revenues                                

Residential data

   $ 124,089     $ 109,781     $ 14,308       13.0 %

Residential video

     84,570       88,601       (4,031 )     (4.5 )%

Residential voice

     10,169       11,265       (1,096 )     (9.7 )%

Business services

     39,581       35,156       4,425       12.6 %

Advertising sales

     6,288       5,885       403       6.8 %

Other

     3,571       3,145       426       13.5 %

Total Revenues

     268,268       253,833       14,435       5.7 %

Costs and Expenses

                                

Operating (excluding depreciation and amortization)

     91,956       91,894       62       0.1 %

Selling, general and administrative

     59,439       51,806       7,633       14.7 %

Depreciation and amortization

     50,414       46,712       3,702       7.9 %

Loss on asset disposals, net

     3,140       2,506       634       25.3 %

Total costs and expenses

     204,949       192,918       12,031       6.2 %

Income from operations

     63,319       60,915       2,404       3.9 %

Interest expense

     (15,460 )     (14,019 )     (1,441 )     10.3 %

Other income, net

     1,503       278       1,225       NM  

Income before income taxes

     49,362       47,174       2,188       4.6 %

Income tax provision

     11,048       16,269       (5,221 )     (32.1 )%

Net income

   $ 38,314     $ 30,905     $ 7,409       24.0 %
                                 
Net income per common share:                                

Basic

   $ 6.75     $ 5.44     $ 1.31       24.1 %

Diluted

   $ 6.70     $ 5.37     $ 1.33       24.8 %
Weighted average common shares outstanding:                                

Basic

     5,674,224       5,680,600       (6,376 )     (0.1 )%

Diluted

     5,717,575       5,753,910       (36,335 )     (0.6 )%
                                 

Other comprehensive income, net of tax

   $ 1     $ 1     $ -       0.0 %

Comprehensive income

   $ 38,315     $ 30,906     $ 7,409       24.0 %
                                 

Dividends declared per common share

   $ 2.00     $ 1.75     $ 0.25       14.3 %
   

NM = Not meaningful.

 

5
 

 

CABLE ONE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands, except par value and share data)

  

September 30, 2018

    

December 31, 2017

  
Assets                
Current Assets:                

Cash and cash equivalents

   $ 236,901     $ 161,752  

Accounts receivable, net

     28,168       29,930  

Income taxes receivable

     8,566       21,331  

Prepaid and other current assets

     16,694       10,898  

Total Current Assets

     290,329       223,911  

Property, plant and equipment, net

     837,206       831,892  

Intangible assets, net

     956,832       965,745  

Goodwill

     172,129       172,129  

Other noncurrent assets

     11,452       10,955  

Total Assets

   $ 2,267,948     $ 2,204,632  
                 
Liabilities and Stockholders' Equity                
Current Liabilities:                

Accounts payable and accrued liabilities

   $ 101,565     $ 117,855  

Deferred revenue

     18,681       15,008  

Current portion of long-term debt

     19,063       14,375  

Total Current Liabilities

     139,309       147,238  

Long-term debt

     1,147,048       1,160,682  

Deferred income taxes

     225,780       207,154  

Other noncurrent liabilities

     10,476       13,111  

Total Liabilities

     1,522,613       1,528,185  
                 
Stockholders' Equity                

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

     -       -  

Common stock ($0.01 par value; 40,000,000 shares authorized; 5,887,899 shares issued; and 5,705,059 and 5,731,442 shares outstanding as of September 30, 2018 and December 31, 2017, respectively)

     59       59  

Additional paid-in capital

     35,674       28,412  

Retained earnings

     819,687       728,386  

Accumulated other comprehensive loss

     (350 )     (352 )

Treasury stock, at cost (182,840 and 156,457 shares held as of September 30, 2018 and December 31, 2017, respectively)

     (109,735 )     (80,058 )

Total Stockholders' Equity

     745,335       676,447  

Total Liabilities and Stockholders' Equity

   $ 2,267,948     $ 2,204,632  

 

6
 

 

CABLE ONE, INC.

RECONCILIATIONS OF NON-GAAP MEASURES

(Unaudited)

 

   

Three Months Ended September 30,

                  

(dollars in thousands)

  

2018

    

2017

    

$ Change

    

% Change

  

Net income

   $ 38,314     $ 30,905     $ 7,409       24.0 %
                                 

Net profit margin

     14.3 %     12.2 %                
                                 

Plus:       Interest expense

     15,460       14,019       1,441       10.3 %

Income tax provision

     11,048       16,269       (5,221 )     (32.1 )%

Depreciation and amortization

     50,414       46,712       3,702       7.9 %

Equity-based compensation

     2,418       3,076       (658 )     (21.4 )%

Severance expense

     1,111       350       761       217.4 %

Loss on deferred compensation

     100       1,485       (1,385 )     (93.3 )%

Acquisition-related costs

     10       557       (547 )     (98.2 )%

Loss on asset disposals, net

     3,140       2,506       634       25.3 %

System conversion costs

     1,735       -       1,735       NM  

Rebranding costs

     423       -       423       NM  

Other income, net

     (1,503 )     (278 )     (1,225 )     NM  

Adjusted EBITDA

   $ 122,670     $ 115,601     $ 7,069       6.1 %
                                 

Adjusted EBITDA margin

     45.7 %     45.5 %                
                                 

Less:      Capital expenditures

     68,302       52,400       15,902       30.3 %

Adjusted EBITDA less capital expenditures

   $ 54,368     $ 63,201     $ (8,833 )     (14.0 )%

 

  

NM = Not meaningful.

 

   

Three Months Ended September 30,

                  

(dollars in thousands)

  

2018

    

2017

    

$ Change

    

% Change

  

Net cash provided by operating activities

   $ 111,015     $ 88,929     $ 22,086       24.8 %

Capital expenditures

     (68,302 )     (52,400 )     (15,902 )     30.3 %

Interest expense

     15,460       14,019       1,441       10.3 %

Amortization of debt issuance cost

     (1,076 )     (992 )     (84 )     8.5 %

Income tax provision

     11,048       16,269       (5,221 )     (32.1 )%

Changes in operating assets and liabilities

     (6,586 )     (1,637 )     (4,949 )     NM  

Increase in deferred income taxes

     (9,067 )     (3,101 )     (5,966 )     192.4 %

Loss on deferred compensation

     100       1,485       (1,385 )     (93.3 )%

Acquisition-related costs

     10       557       (547 )     (98.2 )%

Severance expense

     1,111       350       761       217.4 %

System conversion costs

     1,735       -       1,735       NM  

Rebranding costs

     423       -       423       NM  

Other income, net

     (1,503 )     (278 )     (1,225 )     NM  

Adjusted EBITDA less capital expenditures

   $ 54,368     $ 63,201     $ (8,833 )     (14.0 )%
   

NM = Not meaningful.

 

7
 

 

CABLE ONE, INC.

OPERATING STATISTICS

(Unaudited)

 

   

As of September 30,

    

Year-Over-Year Change

  
   

2018

    

2017

    

Amount

    

%

  

Homes Passed (1)

     2,089,306       2,136,836       (47,530 )     (2.2 )%
                                 

Residential Customers

     730,252       731,099       (847 )     (0.1 )%
                                 

Data PSUs

     598,001       581,510       16,491       2.8 %

Video PSUs

     312,564       353,860       (41,296 )     (11.7 )%

Voice PSUs

     101,443       111,295       (9,852 )     (8.9 )%

Total residential PSUs

     1,012,008       1,046,665       (34,657 )     (3.3 )%
                                 

Business Customers

     70,927       65,011       5,916       9.1 %
                                 

Data PSUs

     62,798       56,143       6,655       11.9 %

Video PSUs

     16,357       16,853       (496 )     (2.9 )%

Voice PSUs

     26,529       24,220       2,309       9.5 %

Total business services PSUs

     105,684       97,216       8,468       8.7 %
                                 

Total Customers

     801,179       796,110       5,069       0.6 %

Total non-video

     472,367       N/A       N/A       N/A  

Percent of total

     59.0 %     N/A       N/A       N/A  
                                 

Data PSUs

     660,799       637,653       23,146       3.6 %

Video PSUs

     328,921       370,713       (41,792 )     (11.3 )%

Voice PSUs

     127,972       135,515       (7,543 )     (5.6 )%

Total PSUs

     1,117,692       1,143,881       (26,189 )     (2.3 )%
                                 
Penetration                                

Data

     31.6 %     29.8 %             1.8 %

Video

     15.7 %     17.3 %             (1.6 )%

Voice

     6.1 %     6.3 %             (0.2 )%
                                 
Share of Third Quarter Revenues                                

Residential data

     46.3 %     43.2 %             3.1 %

Business services

     14.8 %     13.9 %             0.9 %

Total

     61.1 %     57.1 %             4.0 %
                                 
ARPU - Third Quarter                                

Residential data (2)

   $ 68.83     $ 62.49     $ 6.34       10.1 %

Residential video (2)

   $ 88.44     $ 81.96     $ 6.48       7.9 %

Residential voice (2)

   $ 32.95     $ 33.26     $ (0.31 )     (0.9 )%

Business services (3)

   $ 185.32     $ 180.13     $ 5.20       2.9 %
                                 

Number of Employees

     2,249       2,312       (63 )     (2.7 )%
   

(1)

Homes passed represents the number of residential and business serviceable addresses within our footprint. During the first quarter of 2018, the number of Legacy CABO homes passed was reduced by approximately 74,000 to adjust for duplicate and non-serviceable addresses.

(2)

Average monthly revenue per unit values represent the applicable quarterly residential service revenues (excluding installation and activation fees) divided by the corresponding average of the number of PSUs at the beginning and end of each period, divided by three.

(3)

Average monthly revenue per unit values represent quarterly business services revenues (excluding installation and activation fees) divided by the average of the number of business customer relationships at the beginning and end of each period, divided by three.

N/A

Information not available.

 

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