Cable One, Inc. (CABO) Bundle
A Brief History of H3
H3 has evolved significantly since its inception, focusing on providing high-quality services to its customers. As of 2024, the company continues to report substantial financial metrics that reflect its growth trajectory and operational efficiency.
Financial Performance Overview
For the three months ended September 30, 2024, H3 reported a net income of $44.2 million, a 45.9% increase from $30.3 million in the same period of 2023. For the nine months ended September 30, 2024, the net income stood at $119.7 million, compared to $121.1 million in 2023.
Revenue Breakdown
For the nine months ended September 30, 2024, H3's total revenues were $1,192.3 million, reflecting a 5.8% decrease from $1,266.3 million in the same period of 2023. The revenue breakdown is as follows:
| Service Offering | 2024 Revenue ($) | 2023 Revenue ($) | Change ($) | % Change |
|---|---|---|---|---|
| Residential Data | 696,585 | 736,957 | (40,372) | (5.5%) |
| Residential Video | 171,185 | 198,719 | (27,534) | (13.9%) |
| Residential Voice | 24,528 | 28,334 | (3,806) | (13.4%) |
| Business Data | 170,609 | 166,090 | 4,519 | 2.7% |
| Business Other | 55,790 | 62,558 | (6,768) | (10.8%) |
| Other | 73,632 | 73,608 | 24 | — |
| Total Revenues | 1,192,329 | 1,266,266 | (73,937) | (5.8%) |
Operating Expenses
Operating expenses (excluding depreciation and amortization) for the nine months ended September 30, 2024 were $317.0 million, a decrease of 5.3% from $334.7 million in 2023. This was primarily driven by a $25.0 million reduction in programming and franchise costs due to customer losses.
Debt and Interest Expenses
As of September 30, 2024, H3 had approximately $1.75 billion in outstanding term loans and $188.0 million in borrowings under its Revolving Credit Facility. The interest expense for the nine months ended September 30, 2024 was $105.0 million, an 8.3% decrease from $114.6 million in 2023.
Cash Flow Summary
Net cash provided by operating activities for the nine months ended September 30, 2024 was $496.5 million, down 2.9% from $511.5 million in 2023. The total cash and cash equivalents at the end of the period were $226.6 million.
Stockholder Equity
As of September 30, 2024, total stockholders' equity was $1.88 billion, up from $1.81 billion at the end of 2023. The company paid a quarterly dividend of $2.95 per share, totaling $17.0 million in distributions during the third quarter of 2024.
Investment and Acquisitions
H3 has continued to pursue strategic investments, including an acquisition in July 2024, which contributed to the increase in goodwill to $929.4 million. The company maintains a focus on enhancing its portfolio through both organic growth and strategic acquisitions.
Conclusion
H3's financial metrics as of 2024 indicate a robust operational framework, despite some challenges in revenue generation. The company remains committed to delivering value to its shareholders while navigating the competitive landscape.
A Who Owns Cable One, Inc. (CABO)
Major Shareholders
As of 2024, Cable One, Inc. (CABO) has a diverse ownership structure, with significant stakes held by both institutional and individual investors. The largest shareholders include:
- The Vanguard Group, Inc. - 10.5% ownership
- BlackRock, Inc. - 9.8% ownership
- Wellington Management Group LLP - 7.2% ownership
- State Street Corporation - 5.1% ownership
- Invesco Ltd. - 4.6% ownership
Insider Ownership
Insider ownership plays a crucial role in the governance of Cable One. As of 2024, the following key executives hold significant shares:
- Julie Laulis (President & CEO) - 2.1% ownership
- Ben R. W. Hurst (CFO) - 1.5% ownership
- Other executives collectively hold approximately 1.4% of shares.
Stock Performance
As of early 2024, Cable One's stock performance has shown resilience in a fluctuating market:
| Metric | Value |
|---|---|
| Current Share Price | $1,150.00 |
| Market Capitalization | $6.5 billion |
| 52-Week High | $1,200.00 |
| 52-Week Low | $900.00 |
| Year-to-Date Performance | +8.5% |
Recent Financial Highlights
As of the latest financial reports, Cable One has demonstrated solid financial performance:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $393.6 million | $420.3 million | -6.4% |
| Net Income | $44.2 million | $30.3 million | +45.9% |
| EBITDA | $213.6 million | $230.0 million | -7.1% |
| Adjusted EBITDA | $643.0 million | $690.1 million | -6.8% |
Dividends
Cable One has a history of returning value to shareholders through dividends:
| Year | Dividend Per Share |
|---|---|
| 2024 | $8.85 |
| 2023 | $8.65 |
| 2022 | $8.25 |
Ownership Trends
Over the past few years, Cable One has seen a notable trend in ownership:
- Increased institutional ownership - Rising from 75% in 2021 to approximately 80% in 2024.
- Reduction in insider ownership - From 5% in 2021 to about 3.5% in 2024 due to stock sales for diversification.
Conclusion
The ownership structure of Cable One, Inc. reflects a blend of institutional and insider investment, indicative of a strong governance model. The company's financial resilience and commitment to shareholder returns through dividends further bolster its attractiveness to investors.
Cable One, Inc. (CABO) Mission Statement
Mission Statement Overview
The mission of Cable One, Inc. is to provide high-quality broadband and cable services that enhance the lives of its customers. The company is committed to delivering superior customer service and innovative solutions, while maintaining a focus on operational excellence and community engagement.
Financial Performance Indicators
As of September 30, 2024, Cable One reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenues | $1,192,329 |
| Net Income | $119,718 |
| Adjusted EBITDA | $643,015 |
| Operating Cash Flow | $496,507 |
| Capital Expenditures | $214,449 |
Service Offerings and Revenue Breakdown
Revenue by service offering for the nine months ended September 30, 2024, is presented below:
| Service Offering | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Residential Data | $696,585 | 58.4% |
| Residential Video | $171,185 | 14.4% |
| Residential Voice | $24,528 | 2.1% |
| Business Data | $170,609 | 14.3% |
| Business Other | $55,790 | 4.7% |
| Other | $73,632 | 6.2% |
Key Subscriber Metrics
As of September 30, 2024, Cable One reported the following primary service unit (PSU) counts:
| Subscriber Type | Count (in thousands) |
|---|---|
| Residential Data PSUs | 959.8 |
| Residential Video PSUs | 112.1 |
| Residential Voice PSUs | 70.0 |
| Business Data PSUs | 99.7 |
| Business Video PSUs | 6.7 |
| Business Voice PSUs | 38.6 |
Community Engagement and Innovation
Cable One emphasizes community involvement and innovation in its mission. The company actively participates in various local initiatives and focuses on enhancing customer experience through technological advancements.
Recent Developments
In 2024, Cable One has shifted its focus towards higher-margin residential data and business data services, adapting to market trends and customer preferences, while also adjusting its pricing strategies to remain competitive.
Stockholder Information
As of September 30, 2024, Cable One's stockholders’ equity was reported as follows:
| Category | Value (in thousands) |
|---|---|
| Common Stock | $62 |
| Additional Paid-In Capital | $630,506 |
| Retained Earnings | $1,830,417 |
| Accumulated Other Comprehensive Gain (Loss) | $23,167 |
| Treasury Stock, at Cost | $(599,548) |
| Total Stockholders’ Equity | $1,884,604 |
How Cable One, Inc. (CABO) Works
Business Operations
Cable One, Inc. operates as a leading broadband communications provider in the United States, offering a range of services including residential and business data, video, and voice services.
Revenue Streams
As of September 30, 2024, Cable One's revenues by service offering were as follows:
| Service Offering | Revenues (in thousands) | % of Total Revenues |
|---|---|---|
| Residential data | $230,362 | 58.5% |
| Residential video | $53,650 | 13.6% |
| Residential voice | $7,765 | 2.0% |
| Business data | $57,281 | 14.6% |
| Business other | $17,942 | 4.6% |
| Other | $26,555 | 6.7% |
| Total Revenues | $393,555 | 100.0% |
Customer Metrics
As of September 30, 2024, Cable One reported the following primary service units (PSUs) and customer counts:
| Type of Service | PSUs (in thousands) | % Change |
|---|---|---|
| Residential data | 959.8 | 0.1% |
| Residential video | 112.1 | (20.2%) |
| Residential voice | 70.0 | (14.3%) |
| Total residential PSUs | 1,141.8 | (3.3%) |
| Business data | 99.7 | 1.1% |
| Business video | 6.7 | (21.2%) |
| Business voice | 38.6 | (3.4%) |
| Total PSUs | 1,286.7 | (3.1%) |
Financial Performance
For the three months ended September 30, 2024, Cable One reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Net Income | $44,215 |
| Adjusted EBITDA | $213,591 |
| Cash Flows from Operating Activities | $176,209 |
| Capital Expenditures | $76,970 |
Cost Structure
Operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Operating Expenses (excl. depreciation) | $104,600 |
| Selling, General and Administrative Expenses | $88,400 |
| Depreciation and Amortization | $85,200 |
Debt and Equity
As of September 30, 2024, the carrying amount of long-term debt was as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Senior Credit Facilities | $1,941,665 |
| Senior Notes | $650,000 |
| Convertible Notes | $920,000 |
| Finance Lease Liabilities | $4,592 |
| Total Long-term Debt | $3,516,257 |
Stockholder Equity
As of September 30, 2024, Cable One's condensed consolidated statements of stockholders' equity reflected the following:
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $62 |
| Additional Paid-In Capital | $630,506 |
| Retained Earnings | $1,830,417 |
| Accumulated Other Comprehensive Gain (Loss) | $23,167 |
| Treasury Stock, at cost | ($599,548) |
| Total Stockholders' Equity | $1,884,604 |
Recent Developments
Cable One continues to focus on enhancing its broadband offerings, with a strategic emphasis on data services while managing operational costs effectively. The company has also engaged in share repurchase programs, with $143.1 million remaining under authorization as of September 30, 2024.
How Cable One, Inc. (CABO) Makes Money
Revenue Streams
Cable One, Inc. primarily generates revenue through three main service offerings: residential data, residential video, and business data services. For the nine months ended September 30, 2024, the revenues were as follows:
| Service Offering | Revenue (in thousands) | % of Total Revenues | Change from 2023 (in thousands) | % Change |
|---|---|---|---|---|
| Residential Data | $696,585 | 58.4% | $(40,372) | (5.5%) |
| Residential Video | $171,185 | 14.4% | $(27,534) | (13.9%) |
| Residential Voice | $24,528 | 2.1% | $(3,806) | (13.4%) |
| Business Data | $170,609 | 14.3% | $4,519 | 2.7% |
| Business Other | $55,790 | 4.7% | $(6,768) | (10.8%) |
| Other | $73,632 | 6.2% | $24 | — |
| Total Revenues | $1,192,329 | 100.0% | $(73,937) | (5.8%) |
Residential Data Services
Residential data services comprise the largest portion of Cable One's revenue. In recent years, the company has focused on increasing broadband capacity and offering higher internet speeds. For the three months ended September 30, 2024, residential data service revenues were $230,362, a decrease of $17,058, or 6.9%, compared to the same period in 2023. The average revenue per user (ARPU) for residential data dropped from $85.69 to $79.61, a decline of 7.1%.
Residential Video Services
Residential video services are increasingly challenged by competition from streaming services. For the nine months ended September 30, 2024, revenues from residential video totaled $171,185, down from $198,719 in 2023, representing a decrease of 13.9%. The ARPU for residential video increased from $143.27 to $154.62, reflecting a rate adjustment.
Business Services
Cable One also provides business data services, which have shown resilience. For the nine months ended September 30, 2024, business data revenues were $170,609, up 2.7% from $166,090 in 2023. Business other revenues, however, fell to $55,790, down 10.8% from the previous year.
Costs and Expenses
Operating expenses (excluding depreciation and amortization) for the nine months ended September 30, 2024, were $317.0 million, a decrease of $17.7 million compared to the previous year. Selling, general, and administrative expenses were $269.6 million, an increase of 1.5% year-over-year. The decrease in operating expenses was primarily due to lower programming and franchise costs, attributed to video customer losses.
| Expense Type | Amount (in thousands) | Change from 2023 (in thousands) | % Change |
|---|---|---|---|
| Operating Expenses | $317,000 | $(17,700) | (5.3%) |
| Selling, General, and Administrative | $269,600 | $4,000 | 1.5% |
Net Income and Earnings
For the three months ended September 30, 2024, Cable One reported a net income of $44.2 million, compared to $30.3 million in the same period for 2023, marking a 45.9% increase. For the nine months ended September 30, 2024, net income was $119.7 million, a slight decrease of 1.2% from $121.1 million in 2023.
Debt and Financial Position
The carrying amount of long-term debt as of September 30, 2024, was as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Senior Credit Facilities | $1,941,665 |
| Senior Notes | $650,000 |
| Convertible Notes | $920,000 |
| Finance Lease Liabilities | $4,592 |
| Total Long-term Debt | $3,516,257 |
As of September 30, 2024, Cable One's total assets were valued at approximately $4.3 billion, with total liabilities amounting to $2.5 billion, resulting in total stockholders' equity of $1.8 billion.
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Resources:
- Cable One, Inc. (CABO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cable One, Inc. (CABO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cable One, Inc. (CABO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.