Cable One Inc (CABO) Reports Q3 2023 Earnings: Net Income Drops by 44.1% Year-Over-Year
Cable One Inc (NYSE:CABO) reported a 44.1% decrease in net income year-over-year for Q3 2023.
The company's revenues also saw a slight decrease of 1.0% compared to the same period in 2022.
Despite these decreases, Adjusted EBITDA increased by 2.4% and Adjusted EBITDA less capital expenditures rose by 22.6%.
Residential data services revenues grew by 5.8% year-over-year.
On November 2, 2023, Cable One Inc (NYSE:CABO) released its financial and operating results for the third quarter ended September 30, 2023. The company reported a decrease in net income of 44.1% year-over-year, from $70.6 million in Q3 2022 to $39.5 million in Q3 2023. Revenues also saw a slight decrease of 1.0% from $424.7 million in Q3 2022 to $420.3 million in Q3 2023.
Financial Highlights
Despite the decrease in net income and revenues, Cable One Inc (NYSE:CABO) reported an increase in Adjusted EBITDA of 2.4%, from $224.6 million in Q3 2022 to $230.0 million in Q3 2023. Adjusted EBITDA margin also increased from 52.9% in Q3 2022 to 54.7% in Q3 2023. Furthermore, Adjusted EBITDA less capital expenditures saw a significant increase of 22.6%, from $124.1 million in Q3 2022 to $152.2 million in Q3 2023.
Julie Laulis, Cable One President and CEO, commented on the company's performance, stating,
Our high margin data services product lines continue to perform admirably, with residential data services revenues growing 5.8% year-over-year. Coupled with a reduction in capital expenditures in the third quarter enabled by multiple years of efficient capital investment and significant network capacity, our free cash flow conversion was robust, even in a subdued growth environment."
Other Key Details
Residential data revenues increased by 5.8% year-over-year. The company also repurchased 23,875 shares of its common stock at an aggregate cost of $16.5 million and paid $16.7 million in dividends during the third quarter of 2023. The company had $143.1 million of remaining share repurchase authorization as of September 30, 2023.
At the end of Q3 2023, the company had $239.6 million of cash and cash equivalents on hand, compared to $215.2 million at the end of 2022. The company's debt balance was approximately $3.7 billion at the end of Q3 2023, down from $3.8 billion at the end of 2022.
Looking Forward
Despite the decrease in net income, Cable One Inc (NYSE:CABO) remains optimistic about its performance. The company's increase in Adjusted EBITDA and Adjusted EBITDA less capital expenditures, as well as the growth in residential data services revenues, indicate potential for future growth. However, the company will need to continue to monitor its financial performance closely in the coming quarters.
Explore the complete 8-K earnings release (here) from Cable One Inc for further details.
This article first appeared on GuruFocus.
