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Cable ONE (CABO) Q4 Earnings Miss, Revenues Beat Estimates
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Small-sized cable MSO (multi service operator) Cable ONE Inc. (CABO - Free Report) reported mixed financial results in the fourth quarter of 2016 wherein the top line surpassed the Zacks Consensus Estimate by a nominal margin while the bottom line missed the same.
Cable ONE operates shares space with leading cable MSOs like Comcast Corp. (CMCSA - Free Report) , Charter Communications Inc. (CHTR - Free Report) and AT&T Inc. (T - Free Report) in an intensely competitive cable TV market. While Cable ONE currently carries a Zacks Rank #5 (Strong Sell), the other three stocks, mentioned above, carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarterly net income was $24.4 million, highlighting a decrease of 4.3% from the fourth quarter of 2015. Fourth-quarter earnings per share of $4.23 lagged the Zacks Consensus Estimate of $4.31.
Total revenue was $206.7 million, up 1.6% year over year and slightly above the Zacks Consensus Estimate of $206 million. Of the total, Residential Data revenues were approximately $87.9 million, up 12.9%. Residential Video revenues totaled $72.1 million, down 7.5%. Residential Voice revenues were $10.2 million, down 19.4%. Business Services segment generated $26.6 million in revenues, up 14.2%. Advertising sales were $7.4 million, down 16.4%. Other revenues were $2.5 million, down 9.7%.
In the reported quarter, operating expenses totaled $160.3 million, up 5.2% year over year. Operating income was $46.4 million, down 9% year over year. Adjusted EBITDA was $88.6 million, up 0.7% year over year. Adjusted EBITDA margin was 42.9% compared with 43.2% in the year-ago quarter. Net profit margin was 11.8% compared with 12.8% in the year-ago quarter.
Cash Flow
In the fourth quarter of 2016, Cable ONE generated $58.3 million of cash from operations compared with $51.2 million in the prior-year quarter. Free cash flow, in the reported quarter was $24.1 million compared with a negative $15.9 million in the year-ago quarter.
Liquidity
At the end of 2016, Cable ONE had $138 million of cash and cash equivalents compared with $119.2 million at the end of 2015. Total debt, at the end of 2016 was $537.1 million compared with $539.3 million in the year-ago quarter.
Operating Statistics
As of Dec 31, 2016, the total customer base of Cable ONE was 657,222, down 1.1% year over year. Non-video customer base was 336,419, up 13.5% year over year. Non-video customers accounted for 51% of the total customer count compared with 45% at the end of the year-ago quarter.
Residential Segment: Total customers were 605,699, down 1.9% year over year. Data customers were 469,053, up 1.8%. Video customers were 306,563, down 12.4%. Voice customer count totaled 97,724, down 12%. PSU customers were 873,340, down 5.3%.
Business Segment: Total customers were 51,523, up 8.7% year over year. Data customers were 44.855, up 11.4%. Video subscribers were 13,683, down 4.1%. Voice customer count totaled 18,087, up 12.6%. PSU customers were 76,625, up 8.5%.
Average Revenue Per User (ARPU): Residential data ARPU was $62.64, up 10.9%. Residential video ARPU was $77.23, up 6.4%. Residential voice ARPU was $34.36, down 8%. Business services ARPU was $173.41, up 4.6%. Total customer ARPU was $104.78, up 2.9%.
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Cable ONE (CABO) Q4 Earnings Miss, Revenues Beat Estimates
Small-sized cable MSO (multi service operator) Cable ONE Inc. (CABO - Free Report) reported mixed financial results in the fourth quarter of 2016 wherein the top line surpassed the Zacks Consensus Estimate by a nominal margin while the bottom line missed the same.
Cable ONE operates shares space with leading cable MSOs like Comcast Corp. (CMCSA - Free Report) , Charter Communications Inc. (CHTR - Free Report) and AT&T Inc. (T - Free Report) in an intensely competitive cable TV market. While Cable ONE currently carries a Zacks Rank #5 (Strong Sell), the other three stocks, mentioned above, carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quarterly net income was $24.4 million, highlighting a decrease of 4.3% from the fourth quarter of 2015. Fourth-quarter earnings per share of $4.23 lagged the Zacks Consensus Estimate of $4.31.
Total revenue was $206.7 million, up 1.6% year over year and slightly above the Zacks Consensus Estimate of $206 million. Of the total, Residential Data revenues were approximately $87.9 million, up 12.9%. Residential Video revenues totaled $72.1 million, down 7.5%. Residential Voice revenues were $10.2 million, down 19.4%. Business Services segment generated $26.6 million in revenues, up 14.2%. Advertising sales were $7.4 million, down 16.4%. Other revenues were $2.5 million, down 9.7%.
In the reported quarter, operating expenses totaled $160.3 million, up 5.2% year over year. Operating income was $46.4 million, down 9% year over year. Adjusted EBITDA was $88.6 million, up 0.7% year over year. Adjusted EBITDA margin was 42.9% compared with 43.2% in the year-ago quarter. Net profit margin was 11.8% compared with 12.8% in the year-ago quarter.
Cash Flow
In the fourth quarter of 2016, Cable ONE generated $58.3 million of cash from operations compared with $51.2 million in the prior-year quarter. Free cash flow, in the reported quarter was $24.1 million compared with a negative $15.9 million in the year-ago quarter.
Liquidity
At the end of 2016, Cable ONE had $138 million of cash and cash equivalents compared with $119.2 million at the end of 2015. Total debt, at the end of 2016 was $537.1 million compared with $539.3 million in the year-ago quarter.
Operating Statistics
As of Dec 31, 2016, the total customer base of Cable ONE was 657,222, down 1.1% year over year. Non-video customer base was 336,419, up 13.5% year over year. Non-video customers accounted for 51% of the total customer count compared with 45% at the end of the year-ago quarter.
Residential Segment: Total customers were 605,699, down 1.9% year over year. Data customers were 469,053, up 1.8%. Video customers were 306,563, down 12.4%. Voice customer count totaled 97,724, down 12%. PSU customers were 873,340, down 5.3%.
Business Segment: Total customers were 51,523, up 8.7% year over year. Data customers were 44.855, up 11.4%. Video subscribers were 13,683, down 4.1%. Voice customer count totaled 18,087, up 12.6%. PSU customers were 76,625, up 8.5%.
Average Revenue Per User (ARPU): Residential data ARPU was $62.64, up 10.9%. Residential video ARPU was $77.23, up 6.4%. Residential voice ARPU was $34.36, down 8%. Business services ARPU was $173.41, up 4.6%. Total customer ARPU was $104.78, up 2.9%.
Cable One, Inc. Price, Consensus and EPS Surprise
Cable One, Inc. Price, Consensus and EPS Surprise | Cable One, Inc. Quote
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>