CABO - Earnings call transcript Q1 2022

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Operator

Good day, and thank you for standing by. Welcome to the Cable One First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be question-and-answer session. [Operator Instructions] Please be advised that today’s conference is also is being recorded. ado, today, like Mr. further first welcome Without for speaker Instructions] I to would your [Operator Steven your Cochran, CFO.

You may begin.

Steven Cochran

call. Thank welcome you, earnings to and Cable One’s Carole. first quarter Good afternoon, XXXX

as glad we We’re you have join review results. to our us

you Before contains today’s events involve forward-looking to uncertainties. future discussion risks to that and we relating like proceed, that I’d remind statements

in One except discussed can is otherwise. our earnings materially from or differ statements, find results actual new to to today’s Cable filings. factors You SEC and alter forward-looking no recent that any under of obligation and events forward-looking during as update statements One’s disclaims expressly its release call whether could obligation, result future and cause law, as Cable a required by today’s information, or the

remarks financial most to website with accepted U.S. are our discussion financial of at Additionally, include found on be GAAP. discussed generally non-GAAP ir.cableone.net. earnings call GAAP measures a on conformity release in certain our the Reconciliations not or in today’s directly measures will comparable of measures presented can or accounting principles that this

to Joining me is our over With that, President call let me on the call CEO, Julie turn and today’s Laulis. Julie.

Julie Laulis

appreciate and you Steven, everyone. us good you, call. afternoon, for today’s Thank joining We

our that of quarter customer financial come team out, solid One in our you’ve exceptional Given and track record of we delivers upon growth, performance. Cable building the strong history consistent as hope results and to the quarter long-term know

increased EBITDA XX.X%. revenues increased first our of total This exemplify Adjusted focus to strategic EBITDA quarter, our of the initiative. on again, Compared XX.X%, quarter margin once execution the that adjusted provided XXXX, was and XX%. results

current first With reflected focused as we we quarter positioned reminder, industry this capital our are are HSD not goals. stock continue the bar. customer execute And to is from management we the ARPU strategy Clearwave and our disappointed have leading a our that to deconsolidated on sustained allocation, long-term our effective in While and Fiber our we well in on price, and growth, are raise will of results which our costs deliver results.

our a the service, we a On to basis, speed at added when sequential growth. year-over-year first grew XXX,XXX of on quarterly or Clearwave basis residential the customers XX.X% by excluding Looking customers. customers we impact Fiber, XX,XXX contributed internet high

As we expect return year, to to is seasonality. customer more pre-pandemic have for said normalized the past growth to logical a it

resulted our with positive in During selecting the in our first line service data the quarter, with into of products which combined XXXX. high meg to XXX unlimited gigabit or upgrades new increased premium highs and saw These for first data the HSD XXXX, in time. moved for customers we first growth growth ARPU we at reaching offering year-over-year with new were and above of towards further X.X% speed of Demand new by for the sell existing speeds our customers the expectations. patterns sales of our XX% quarter XX%

tiers the customers last to initial of for XXX their speed quarter $X our last discussed our on call, speed we we meg our month. doubling from at meg of migrating As tier, per XXX speed began increase end an

this the to the from quarter. realize We ARPU migration lift in fully second expect associated

investments continue the customer efforts that ensure our efficient the Turning long-term forefront critical to experience. to growth. capital Reliability premium ensuring our to cost and is as never network. a of at a make of Because part to is of our we barrier strategy network this, to

and never this year, past peak our reaching the quarter five for CAGR utilization XX% years, exceeded gigs first in average during the approximately at grown of upstream an customer hours per has XXX downstream per usage While month XX%. of

business and revenues commercial. services the growth services excluding X.X% CableAmerica year-over-year. with XX.X% Clearwave Hargray, million, Fiber increasing to When year-over-year. to $XX.X were Business operations Moving contributed

We the continue increase existing a to promotion, offerings. QX only fees, ARPU which of demand services for year-over-year customers, tiered their product encouraging contributed from X.X%. internet marketing benefit new from in Business growth, see also to customer higher from customers not but to increase

to recently service, billion, been and a one our Our strong recently, also With talent sizes business the an expertise of total and in delivering value. on position addressable deeply Hargray of of laser services engaged associates. white in of commitment leveraging team has is continuing which market footprint. estimated glove build in team and business designed newest needs integrating in our to we larger focused This brand acquired our evolving across meet the product $X.X services a Voice support all is Hosted our competitive of redeployed portfolio we are unlocking Most our businesses to just our defend markets. way

excited are business ahead We very for growth robust opportunities the for services.

value from for residential growth continued investments. at last business total, QX data a highlights by Looking on The X.X% or In our operating unconsolidated partners the basis year. and our to including enables approximately grew of are Cable sequential opportunity customers. adds XX,XXX strategic now customers in this included to serve practices, mind share best better Fiber us that Keep which the figure. net they our in bring One, to that Clearwave

IR on our excellent our are reminder, across roadmaps. teams available unconsolidated of Transitioning is which recently a integration Investor together, making diligently on acquired integrations, more our our Day portfolio As provides bringing presentation, website. our to execute to brands company working investments progress, the on detail

to has adopt adoption companies proved incentive examples servicing acquired our values and companywide learn brands. of acquisitions, solution we that platform very solutions Fidelity it’s or from our and talent connecting HR of innovative customers pandemic, of have One. Whether practices to NewWave, recent company from Hargray’s joined and the incredible tangible best Cable many and chat we all our bring implemented the video during program, intangible across the that to continue the the the essential We these from

Clearwave Our integration the from benefited Fiber. efforts have also of formation

the more to spin-off the Fiber, of savings Clearwave we of Hargray are associated evidence with with the previously, mentioned integration seeing come. As with cost

flow. and Fiber Clearwave focused improved therefore accelerating the to One premises on capital from investment fiber free Cable to opportunities, is intensity reduced is cash expected benefit While

During the of declining spending of in EBITDA signs first One’s as XX.X% XXXX, XX.X% with with adjusted fourth a this we XXXX a saw to capital even during Cable upfront quarter spend. QX the from percent the first of modem large quarter,

areas in the we digital hand fund, and I’d literacy, I like month, later through call to be giving across in grants items. touch community $XXX,XXX non-profit grants markets awards hunger that other education Steven, which the is awarding two to Before over in I’m to which organizations this fund, our on charitable in share of pleased our development. will $XXX,XXX its and annually relief, year. concentrate in support The the second company’s now footprint, to

with honored to we these the organizations to and serve. We support communities are humbled partner

want I a moment to to Next, recognize take Steven.

intention from As announced his of CFO role step many of away Steven aware, as Cable you his to recently may be One.

until with will in call. our be CFO, remain with an next serving Steven’s he this While final January Todd and will earnings working us XXXX, closely Koetje, advisory role

understanding and July continued enabled Over most the delivering industry his be joined Head Managing and and Capital industry, year deep Steven’s company growth Todd and and experience acumen XX team as of Taking over strategy within CFO, Truist core alignment as Group will will Finance. our Telecommunications of invaluable great financial Director growth past strong and as effective the telecom at last made organization. One opportunities long-term value September Media approach has our His the SVP results. in investment the operating to recently him well four execute as our with future. and Business Todd spending and years, business as the enhanced leading financial in the to fit Koetje, be Cable Technology, on the of continue success in for of Markets business extensive years X, of strategic achieve to former have exceptional strategy team-oriented work our discipline, banking, Securities. a after we expertise our background Development current in our Todd’s

exceptionally and next pleased One congratulate our all now, Steven. to would the behalf welcome you Board for So quarter’s to I his on will Cable call. On the with associates, role hear Todd, thank who earnings him of to we contributions exceptional to of And company Directors Cable are from his One. Steven new like and

Steven Cochran

Thanks, Julie.

remind joint fourth venture I Fiber again formed that I’d generated on Such contributed everyone begin, XXXX. we our like to the $XX of certain Clearwave January approximately assets the revenues newly X% Before X. quarter of in or to fiber assets million total

not these include first results operations. Our quarter do reported XXXX

or the XXXX XX.X% were quarter revenues which to of XXXX of the Starting year a did revenues $XXX.X included the in while now revenue. Total $XXX.X of quarter compared $XX.X or first first of business million first Hargray year-over-year. not business This the prior operations, quarter quarter XX% a fueled increase CableAmerica Hargray growth increase. with Additionally, well or does. XXXX was CableAmerica HSD increase, residential X.X%, million for include by million growth X.X% X.X%, and services of was Hargray as of total a impact residential services the When revenue as or Clearwave CableAmerica, of excluding from operations the deconsolidation, Fiber revenue XX.X%. growth revenue HSD increase was was and

PSUs were transaction to the first remaining quarter expenses Clearwave by fair revenue the million, in basis $XXX.X put $XX.X programming by options beginning XX% XXXX, for $XX were realize year year Clearwave in XXXX to expenses a second the contributed we results. quarter. reminder, income video the $X.X prior $XX.X administrative million first $XXX.X accounting HSD or gain and and compared approximately the and non-cash that the the driven non-cash XX,XXX associated revenues migrations equity Net expenses XXX Investments. These PSUs compared the in prior a Fiber. the in grew general for quarter million an the or XX.X% million Operating XXXX, quarter. from was to million quarter year HSD first XX.X% Residential the of rate on on to included since our prior of Broadband million acquire Fiber by in were interest and adjustment largely the revenue decrease a fully the ARPU to the financial expect quarter revenues As Selling, XX.X% when million lift in adjustment quarter, the call of year with quarter in million $XXX.X were annual with or costs. a to X,XXX of improvement, gain the compared of $XX.X Mega of point value first of which in of

the on reminder, quarter. or in As share decrease turn accounting could XX.X% non-cash changes subject the per could their determine on financial a our was any to the expire, value mentioned. options increase fair fully quarter, in an from inclusive to a MBI Until or basis. to cause used which the fluctuations in exercised the mark-to-market results next. income significant valuation, Adjusted the quarterly assumptions options of GAAP million quarter are for these from resulting gains are a share, prior $XXX.X of was year increase the per diluted one just basis Net first $XX.XX EBITDA non-operating

the XX.X%. not required the EBITDA that which providing of note Hargray’s million the of totaled account Our when XXXX, impacts EBITDA. we Hargray adjusted allocations of for to that that XX.X% adjusted the rates into was Fiber Please to non-GAAP margin CableAmerica are exclude equates and in were first provide XXXX. the statements Capital financial reconciliation corporate expenditures growth part acquisitions to taking due adjusted challenges $XX.X and in quarter EBITDA able Clearwave deconsolidation of

we and to $X.X support our million in to invested pull capital growth for for spend million activities. by ensure we is quarter, spend Approximately integration continued the driven forward our modem of During materials have proactive in million in expansion $XX.X network XXXX. $X.X a CapEx

dividends first capital equivalents of nothing free to At less While remaining shareholders XX.X% in in of liabilities. debt was EBITDA from In and we had million we million. billion allocate and quarter $XX.X XXXX, approximately approximately our increased $X convertible during notes in consisting the end million finance $XXX.X capital end, the $XXX how of term approximately the From shares to cash XX,XXX and from first with $XX.X prior quarter-to-quarter, capital. XX, cash the shareholders March quarter quarter. in notes, million flow. Board on as the generate our capital at We’ll we cash hand expenditures for Adjusted quarter will $XXX unsecured a distributed liquidity in was spend significant for to year total million vary million million the quarter. to balance share billion of of capital we deployment standpoint, the first current repurchased long-term quarter continue repurchases million approximately return continue our $X.X $XXX had strategy. overall, in we be opportunistic to authorization, $X.X and Under and the $XX has changed bringing lease loans,

at for netting cash debt had XX. was of Overall, We our additional as our April totaling March annualized equity quarter also approximately Also, $XXX our March X.X cash quarter to EBITDA for XX. million after interest times debt in $XX million. as exchange under Tallahassee last a available MetroNet assets on on borrowing after and adjusted of against contributed we Communications X, hand ended revolver in

we Lastly, both as cable quarter’s mentioned our continued to video call, unwind on last offerings.

an speed is first prepare million offering estimate helping expected Carole, we approximately our margins. we by for time questions. initiative this amount next the of ready are importantly, the high on help unprofitable now reduced it of continue reducing that, in enhancements, the $X.X to product for While more improve to focusing our energy video is network revenue data spent quarter and XXXX, With and generation of

Operator

sir. question you, [Operator Thank line of ask the from Instructions] Raymond Frank Please James. Our question. comes your from Louthan first

Frank Louthan

Great. you. Thank

about JV were for with the of a have there the I color on that decline Thanks. of go of away. so properties and JV? subs want selected Can you nature kind the see or contribution. us more they kind those X,XXX the to Just give start bit penetration and why those little subscriber

Steven Cochran

Sure.

It the more overall that tower the Fiber part strategy, with the So Hargray, network their we own part the the at a the to Hargray fiber as the more entity piece carriers. sell – tower on of within what fiber And fiber basis. Clearwave legal looked a Clearwave a within then but that do to of entire a was One associated of Clearwave Hargray net of concept of they We version was on various not was nationwide – part to business of as effort to had bought is that Hargray. the it asset kind really fiber the done carriers. that’s piece, basically Cable of expansion a

out best was that within And also markets with So were that. inclusive mostly, business and pulled the there, that we too. the also – it tower the associated

they kind the kind doing. it model was had were fit and of that of that So of handpicking business assets part what been

legacy on from of the markets. Certainly, services a the for mean of it and that residential what relatively a to deconsolidate markets markets be describe in expansion launching high I resi capital capital would and one certainly the customers, It’s sense capital a So markets it doing compared business will to is way business. margins a of thought That – the be business much would extensively business them new primarily X,XXX they’re it. I expansion intensity, low smaller side. but fairly versus we number part today. instead piece was our of overall those business services intensive was there their HSD part reasons base And made of

Frank Louthan

do be either the or or in anticipate what residential. more And going cash annual else an And contributing on basis you business will another in forward, assets? focus

Steven Cochran

Yes.

partners. one, – by Certainly, commitments. over There’s expect would want continue business, as of no ad we that. on there’s we $XXX contributed a their both. to leverage bigger our our so to was today. ongoing component cash expected expand commercial But million of it So There residential but it’s no

to, opportunities capacity, over happen too, not. significant profile or the that no they that time whether certainly opportunity, and between were in more we putting obligation impact we grows, we So but can would unless on wouldn’t grow there have certainly business the as and that that cash that leverage more cash have have which chose see will so, to M&A pursue the

Frank Louthan

Great. Thank All right. much. you very

Operator

Our Williams next your Cowen. question comes ask from Greg from Please the line of question.

Greg Williams

Great. Thanks.

would adjustment So data? be the you wanted X,XXX, how I just pleasure you the X,XXX? and like a luck. did like to more residential X,XXX to you many Steve, Is help I’m best the ask missing it grew be I that the it and can as It came Maybe Hargray’s? subscribers of something through there think working on seems me about on that’d upwards was side. that For X,XXX about I subscriber subscribers apples-to-apples about say data or want resi with door great.

Steven Cochran

Greg, Yes. – number the go ahead.

and just we answer appreciate for first XX,XXX. Let net I that you ad words. can one then me and go thank the that. kind The was

adjustment So contributed starting if into the was you actually too. was number and back out the X,XXX what put

true we standpoint, a growth new the quarter. from added customers So XX,XXX organic during

Greg Williams

you some seeing know Every past, quarter. Verizon Okay. in I’m – the dismissive. the were asking T-Mobile the but And half has in encroachment I then wireless? numbers season and rather any if Got been it. haven’t net earnings are by fixed roughly on taking you just ISP big during ads there

I’m coming if do guys you just and you are So wondering think more from? it’s if rural. from you it’s not, coming where

Julie Laulis

to Yes. Do you want go?

Steven Cochran

I’ll ahead. add Go in.

Julie Laulis

Actually, have last answer diabolical would have competitive first all, to about We XX% our to wireless than something XX% greater he is earnings smaller the our call footprint home a review should of Fixed this offer questions. who Steven’s plan or all consider just or competition. is that of since that I XXX on. and have footprint. certainly have a But that total our provider fiber megs another to subset, a eye around we less the XX% let’s can about

some customers buying and associates keep are – that our an of have of on service. experience We can the eye so their we wireless speeds fixed actually who we that maintaining and

have of the than to overlap, may with information that quite T-Mobile actually small operators smaller other and is the I best know. Our you

movement expect be to their over they is network won’t wireless. over but don’t I our to this there market, a it But going is mobile them, get doesn’t fixed needed at that time, for in time. customers versus also see time, So in mean point there

So this really issue not in for us, it an point – at it’s time.

that take that and seriously, we Now that focus is competitors on localism. quite all to such a honestly, isn’t say don’t we have why

are We operator. a local hyper

We our our neighbors with the and customers customers. live have our of who majority and live work and work people

customers So what concern is I think a Quite my from ground on more regardless we’re us. pretty it’s to areas, honestly, coming And for of not that right assumption now close said. the urban that. are

Steven Cochran

where still Yes. pre-pandemic I rate becoming XXXX was in us? first that numbers add have are would from they And Obviously, of implying, thing with that to quarter And did highest after the were our only XXXX. consistent the in is really come the had we we public. growth

And so before them. – and probably even

clearly, we pullback haven’t all considered the so what And what at accelerated we’re a kind we was seen pre-pandemic level. and of would’ve still

So of we’re really the growing before we’re we kind because anywhere rates they’re coming like we’re them. feeling that saw still not from anything, losing at

Greg Williams

you. Thank it. Got

Operator

Our line the next Cahall of Steve question Fargo. from of comes Wells

may You question. ask your

Steve Cahall

you. Thank

know growth. So might for XXX second where base you net I Do kind outlook that’s price ad put in XX,XXX, that be extra megabits make speed elevation on QX, year full customers you about like any in that with annualize the you modest per the I terms able through? you to had sequential the churn that in growth? rate? of increase Or of that And for feel X.X% you upgrade to think and $X. do any see you Did maybe have

Julie Laulis

basically low the then churn levels. is Yes, I’ll at move start question backwards. still historically with Steven, second will the and

low driven data base, is double video maybe that less adjustments. from have operators. double customers typically the that given And But the we’re allotment increase. video honestly, honestly, inclined got quite issue So for the than to our and other speed churn quite rate

and flow forward far quarter. so results in those ARPU really seeing second into so, our so looking And good the to

Steven Cochran

notices the experience people we Yes, add up. that to the I into to did They moving would the XXX did that meg. price move were give that,

that And was these did it targets of so reflected the got what revenue knew a saw we we we and so no from hit all still that you it out customers standpoint growth far. of all and growth

quarter And next so will revenue. video well in that the coming all of be as the

of impact already. had a So time. rate impact, mean, people that a this even worried through move, something about because of approximate first the that, it’s churn I time of that increase the But piece long we’ve fact subscriber know it were the I we’re in kind

So I encouraging. that’s think

Julie Laulis

value. say, between would there’s I And a price difference and

Steven Cochran

to And on question, think year. to a the continued XXXX we’ve I full point second as

is also to our We guess. seasonality that believe is going best that return

the then it And pre-pandemic, case. worse it so have first pretty third, That’s if a and like second so forth. a has what did looks strong been and you historically

We two last haven’t seen for the that years.

any ago. last anticipation that things know than because don’t our would even I of say but months did that year these happening, normal a competence that us be things lot this six are feel with we can or So know of time more they

Steve Cahall

growth passings Great. have this you And in then, total. but organic maybe and year sorry if target earlier, I missed both this do a for

Steven Cochran

historical we’ve think say kind feel done. a mean, that wouldn’t can I of given get I you up. Yes. I and at we’ve ever look what for

some some that the in And that, just growing. that have we’re That’s have continue new get network that we we of And expansion fortunate in because from that a coming We And markets doing. we’re think we growth. that capital comes the of expansion home I be we lot are to that. captured that’s network discussed. through

we give target, something really don’t that because completely that a it’s not we control. So as

try what advantage We actually are I of and take them, can’t say arise we target more are be, opportunistic passings when that take those. but to to certainly going advantage those we of

Steve Cahall

Thank you. Great.

Steven Cochran

Sure.

Operator

You are next, Brandon Nispel Capital of Markets. KeyBanc

is open. Your line

Brandon Nispel

hate Okay, questions. deal up. because question, video this just strategy. expense, it’s revenue video, in going Julie, filings, programming Two more guys to have percentage so going you on of But to you’re the your great. with

last in the for going it’s years. So mid-XX%, been up the couple

a this or video whether Steven, with to mismatch. Then broadband for question else not margin that, sequentially do exiting if And just does and despite And when bundle guess, from do rate business? like service on it’s mobile? view all your rate take standpoint. the but consider guys when your something not change EBITDA You you up margins regularly, it I offset you were

to moving coming in those big we up. the year? increase a the of customers do remainder for when You keep meg XXX for need mean, what mind have EBITDA I a modeling price factors margins HSD Thanks.

Steven Cochran

Yes. sure. Sure,

clearly, on the contribution the Clearwave margin helped assets of impact the lower question, on which assets, Fiber that. EBITDA were So

had also Clearwave had Many of us at portion of team through of left. a the end stayed went Hargray some them the management We to of Fiber, those through over year. – significant who the of the some others

So there as impacted of piece was that well. that

And was so part I has public put business to that heavily was of without kind in do really the what where in pressure a grow to view higher the high Fiber to high margin of say, and an with and the would was the environment it Clearwave low take entity needing margin. be – the ability the strategy it grow but literally bit that invest of to margin of a has company it capital potential of intensity, lower quickly,

And what’s that’s so reflected there.

the the I first because rolls-off particular first none forward, got that timing think, the impact that some of in to unlimited as ARPU we clearly, for move – in of those there’s quarter we ARPU of the the really of really no lift move quarter. tied will HSD the way customers,

it So percentage. maintain to don’t essentially the the get dollars And increase. one-sixth don’t customer And rate all to try we pass equivalent margin the of maintain side, of on the margin we second well, than we – basis. We more while try we’ll get a in per on video quarter.

basis, we’re Julie that’s an into the through EBITDA come individual backwards on costs programming we’re fully cost basis, strategy customer Then just stepping not a to going – a incremental on all a that bundling sure year not that first? the strategy basis. making so passing that So

Julie Laulis

Yes.

related we sure, is, But bundling internet, we would something the with to take which that to and will into whether something the HSD super we an that offering that for do be feel like that we be, own that’s super I customer, be it profitable consumers? unlimited XK, robust and that sure we’re watch of yes, coming there to as with, see. that’s already after we’d our video Not it we this products other value our But line have risk control answer I else pipe is reliable advantage are down will looking be think going not as we’ll what bundle consider I destiny So what it’s think items, data product. the example. directly where

Brandon Nispel

Thank it. Got you.

Operator

the Our MoffettNathanson. line next from question of Li Jay with comes

Your line is open.

Jay Li

you. Hi, thank

normal from XXXX. level like so if pretty So down comment curious a break on in the anticipate it you question just growth back activity far, you of I’m sounds could kind of of environment, or even returned from just normal churn peers. a the the obviously, at data, Has that dynamic. In different you? level to all level pretty for competitive experience some your it

So maybe you now. right comment difference experiencing in how the you’re on maybe contrast to why

Julie Laulis

Yes.

markets. that, churn And moves that bit pace. mean, did at were is robust, even that continuing something our be we that seem though speaking, They low we talked churn from we and churn So experiencing last still are than little it was benefit about to others different honestly, lower that a I connects high. remained quite we than in know quarter pandemic. remained throughout XXXX, say generally that I’d connects our levels. at in were in

seasonality, Our it been are, what although, they like And in normal to our starting where that national and markets look coming going to our we around, normal we the where be we line, that think love again, this think so that which back about the this at national escalated still and XXXX in our look throughout, below coming back markets we’re the two moves you the if have typically least business is we’re years, average. think that. we’re pattern, things moves above normal rhetoric there’s But to those starting We in pandemic can getting average. call predictable. for

Jay Li

on follow-up comment pricing it. overlap on, versus doing? know strategy. I in view guys AT&T Got any what there your strategy given or with a footprint, Any is are comments your And that there’s some you of quick just fiber

Julie Laulis

Yes.

So half by portion of AT&T, tiny CenturyLink, our footprint Frontier. teeny is covered half by

of We seeing honestly. anything AT&T or not CenturyLink, are quite out

us, teeny for biggest builds. are to as Frontier I We a be they of said, doing out seem have the seen piece. And three. mover tiny They a – those

Steven Cochran

our focused much Yes. And not AT&T, And activity that the CenturyLink, the mean, And way – certainly haven’t, ours. they in or but And our to they’re what today if a that, fiber obligation we they’re at And the DIRECTV homes. more we were deal. being to I read, on that, ones because of of have competition, all Will originally million seen you not the homes quickest that build we of sense. not the everything half did on standpoint. taking eventually makes have think to means their on get part that is more areas they’re they’re It’s fiber which based to that I you XX markets their they’re from because those that competitor was areas of heavy to curb fiber part suburban fiber home. active. all. clearly, think and much as when they of fiber come already were

properties And Gulf and stuff. of so that Texas the some the we saw Coast in and

managed been that that. seen we’ve through it. we’ve to through grow so We And

all it’s competition does. of lower we constantly think, think markets, our in what in is pieces never ready about are but we’ll always than so but it expect the, is never rest certainly of slower, more that going people it that we’re understand the intrusive way to there think coming we see I of that’s it’s do what a to less of talk to in don’t maybe And But of be one is the again, we industry the there’s the see going competition, not in parts industry to it to be not eventually in And and rest today. completely someday, prepared markets. maybe than we be than our always but

Julie Laulis

are pretty And our in customers. where getting we’re we confident also

all intelligence customers And of service goes And customer’s and so we have competitive takes I the customers we fiber. needs. that everyone. got we We during to pandemic We the got having on that. customers specifically, of and competitors. think types care got And from got only. technologies that of is from reliable from types a them wireless DSO, We from robust from customers got

these of knowledge deep markets. We have a

aren’t them. entrants. know new We We

neighbors. We are their

Jay Li

Great. Steven. And Thank you both. of best luck,

Steven Cochran

you. Thank

Operator

Capital question line And of KeyBanc the Nispel ask question. we our follow-up have Please with Brandon Markets. a from

Brandon Nispel

had come ask in I the about back and to buyback.

buy $XX your of This year? Or spent Thanks. are how guys remainder million. to back the quarter, intention authorized you stock? the What’s for the you in much

Steven Cochran

Yes.

said that in script left the I have $XX of authorization. we million So the

intentions in mentioned growing So disappointed our we’re it make her it our stock of the capital is is of talk investing in also from that Julie are in opportunistic, in I a as think our purchase an growth deploy But to consistent the strategy. always which something being network, portion, we’ve to side. dividend, allocation investing about and the about opportunistic always share We be in. component presents us said where to doesn’t that believers relates certainly to opportunity script for that cash huge with Obviously, that standpoint us. we’re sense what

Operator

from line of comes Hudi GoldenTree. of question last Miller Our the

Your line is open.

Hudi Miller

Steven, Julie, the taking Hey thanks for question.

points. earlier for follow-ups from quick two me So some

that your inorganic And see is And recall geographies versus said going can a how to versus that year you like if acquired How you of ago, from guys went months, much think I XX% I then in is that guys today fiber was I overlap from XX% in XX do – that think the about next months? new XX build? said where XX%. went we you XX% XX% XX%.

Steven Cochran

Yes. Sure.

components. actually say So I would three there’s

two them. You of mentioned

is stuff. One of buying them clearly

on of that. the Some focus right. has an impact impact had own we on getting actually just is what bought I would we’ve had biggest it say our

though, saw, much. you the overall As moved dynamic that hasn’t competitive

err a of we’ve seen where fiber. people found mostly And actually found geography, all of And we’ve what on phone and is say, the bit gone fiber little side bit so would we if the they entrance, because nature the upgrades of those market I the we’ve they and fiber but where activity, upgrade we aren’t that. have even there’s actually then are, of what new a in of have back little though necessarily homes,

the communities and way what focused neighborhoods it in of as it, understanding previous of on and footprint every say and the competitive different down look if unbelievably within even get just I’ve on small to on was it’s and a about data the into compared and the down we that. the deeper So lot been mentioned to you really here, at communities market, digging calls the mindset competitive more today we’ve I better would then, and even all the time a understanding

a in portion biggest a the it’s some that’s with last the So overlaps. would the build relatively M&A in the last component, increase piece and year of change some itself the but fiber this honestly, of going say, small portion, to has to some going year. the been just I

Julie Laulis

put ramped years. it to then past just a really the at mindset intelligence competitive ground on least three on has for has And two boots focus And the Agree. up.

with say we’re just isn’t clearly there building about either. to I seeing so again, information better overlap some mean, And building. Frontier, That’s we’re not what the getting is.

Hudi Miller

it. that that you build Frontier the I you’re of seeing AT&T. small and Is Got from And was said the right? think most overlap

Steven Cochran

XX our of took And happening not activity. of ILECs. where what’s I is I’ve seen also standpoint of that – most Frontier any overlap the goes you about from the kind They’re currently. AT&T mean, and if talked say footprint the of we’ve say, XX, I’d seen most I over she an the today it smallest would is of historical,

Hudi Miller

a minute. Got it. about Steve, you M&A talked then And for

here on valuations space. balance put talking guys at in lot Day, mega that You think the investments time sheet a call investment about a in it that sits a and we agreement spent about ago. today? the as the to months of Investor few supposed have come With non-consolidated where How on specifically

Steven Cochran

think I it. own we Well, the and growing I it of would way XX% about is – it’s think nicely

participating that we’re growth. in So

participate. sell multiple. in or asset they to call we that I the through sometime our to it the XXXX, XXXX If opportunity XXXX. we we have put the of mean, and could to theoretically and choose at exercise choose between not venture participate can upside middle partners to a can We us created go middle the lower do that a have of that we would that in

think to there’s trading cash sure at today of if buy back, best we at I looking us, when so what anything in buy Cable and invest we’re is. we be make can we’re tell do the would best for And shares weren’t I where you, we we buying thinking stand would use today, where we price, balance we in. this. One position we’re the about better that, But solidifying can to sheet think just don’t to the

we XXXX. I dollars. so XXXX price. likely more argue how how do won’t we today, is than figure to which how mean grow, now out mega operate, we the we do in right And stock we control is can where It sometime, all invested probably the that we But execute, in would a doesn’t way that’s control can’t we

lower price at And do. isn’t, opportunity much so the be to needs should the stock what we it that other can that’s than do to we where potentially if and a have we buy where M&A valuation then

Hudi Miller

Great. Thanks.

Steven Cochran

Sure.

Operator

are will back Mr. time. There remarks. further turn closing to no questions the this call I Steven for at over our Cochran CFO, now

Steven Cochran

Conference work One time thank Thank you, mid-June. transition. and really enjoyed you my over of our Carole. to will TMT their be Fargo and the and both support I May years. later We Streaming will to all to for Cable in attending I’ve team with Day Wells a JPMorgan I many continue entire hope want there. at see the Cable four Julie in next to the seamless Todd One Todd, the CFO and ensure past

Julie Laulis

Thank you, Steven.

associates family. joining most. continue level purpose we so what can that go We execute since connecting to are you’ve the true matters done also My out to Cable One sincerely stay the customers our that grateful for at and our of thanks communities who to to all highest our

I seven business As the to confidence we long-term that grow everyone we’ve which focus on results and continue provide in appreciate the today’s that our said, our Despite years excellent call. and you. our remains ago, utmost investors. We for environment nearly us results today. macroeconomic the ourselves, since have spinoff is will joining for true long-term we find Thank

Operator

today’s you Thank This conference concludes again call. for participating.

disconnect. may now You

Cable One (CABO) 7 May 222022 Q1 Earnings call transcript