Earnings call transcript Q4 2022

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Operator

Good afternoon. Thank you for attending today's Cable One Fourth Quarter and Full-Year 2022 Results Call. My name is Jason, and I will be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]

to conference like host, to now Morkert. Jordan would pass over the our I

Jordan Morkert

welcome One's to full-year and afternoon, Good Cable call. XXXX fourth earnings and quarter

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

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

earnings our can factors that during results SEC from materially differ statements find could discussed actual in You the call, today's release filings. today's in to recent cause Cable and forward-looking One's

Cable One obligation otherwise. statements, or new no alter to under obligation, of except and events forward-looking any is update expressly as whether its law, result future disclaims as a required by information, or

not or presented accounting conformity generally remarks accepted U.S. GAAP. in include Additionally, of today's certain are will with principles discussion a financial that measures

non-GAAP on of GAAP comparable earnings can Reconciliations call this measures website on our most at release financial to in directly the be our or found measures discussed ir.cableone.net.

we quarter and other refer operations Clearwave The results in refer Clearwave adjusted operations, full-year the operations Fiber. and During America. are an today's and to Hargray, we whenever Fiber excluding XXXX, to contributed basis, contributed Cable on an call, results adjusted we America, we excluding Clearwave fourth to whenever to are basis, Cable we on we divested the

Joining CFO. me on Todd today's call is our President and Koetje, and CEO, our Julie Laulis;

over Julie. to call the turn me let that, With

Julie Laulis

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

financial results full-year new and margins. adjusted quarter fourth and in Our reached highs revenues, EBITDA

before, purpose-driven relentless our ultimately and long-term connectivity to more demand enables digital win. delivering opportunities continued are our strategy secular that for associates ever drivers than us expect growth, of on that compete the We given focus present for is

year-over-year X.X% a in in Our increase and X.X% year-over-year adjusted XX.X% an year-over-year an increase full-year in less EBITDA expenditures. adjusted results capital EBITDA, increase revenues, total produced

year-over-year basis improved EBITDA to XXX points adjusted Our margin XX.X%. to

X.X% grew expenditures margin adjusted Residential services and On by consolidated at capital fourth QX quarter, record our increased total increased by another revenues adjusted our X.X%. revenue basis, the X.X%. and broadband by EBITDA revenue For grew set adjusted by X%. a our our XX.X%, less EBITDA on an basis, business

Our success disciplined of investments. is our sustained a people, and products result

continued execute ongoing we on of we have consumer in against and confidence as our staying ahead, connectivity strategy every long-term growth trends. focused Looking ahead

when first Internet Looking customers approximately at decrease XX,XXX customers. we months. operations basis, divested a saw the X,XXX XX our quarterly year, past residential earlier the service, this of we excluding a approximately over sequential we On added

trends in markets home a As activity creation in we slowdown which quarter, that continued competitors adversely customer new new fourth connects. our in impacted in move select This macroeconomic caused count. shared slowdown quarter, trend, in during the and with third resulted the a along corresponding gross

the in churn base broadband surging remain in service of by with line We usage customer retention to our XXXX quarter translating encouraged offerings. highs, XXXX, levels an to higher-tiered and with migration increased our and services to new sell-in residential data of fourth for

in ARPU. modem in in adjustment increased the equipment-based The cycles, sell-in, lease November fees growth years. adjustment modem residential broadband a coupled with higher speed half As of gig of in speeds. of one quarter, new megs We the customers now or to the XXX $X our selected fourth than our our our with five billing resulted three more with adjustment X% first a tiers year-over-year implemented selecting

to we more service add I Internet to share devices capital-efficient in little our next-generation including our a will As a manner. continue value will later, offerings, WiFi

competition. to Turning

our which dispersed low fourth of of quarter, only large the had percentage relatively represents megs footprint. wired offering geographically As XX% end our of competitor of markets XXX a speeds residential higher, broadband of the download or a

strong despite and economics of As our EBITDA show XXXX competition. in our adjusted remained margins record high business the revenue, increasing

those in products that rooted local Our things customer and and confidence of first-mover evolution us experience. and growth in differentiate enhancement continued expertise, our the markets, our future advantages is in

capital-efficient Additionally, has to the is possible the in upgrade which rapidly rural new markets we increasing. networks build have while we road for been of map, a cost made competitors prior by investment, serve years

fixed We activity. continue to keep an eye wireless on competitive

third-party the service unlimited plan low-cost though reliability providers in the Our Mobile offered service we our One's with contrasts than on is by and the Cable markets has mobile sharply research serve. available provider This fixed indicates that in known issues. premium wireless, less today. Internet of focus capacity XX% being a data markets option

and Our capacity us superior reliability kept have perceived threat. this from insulated

historic fixed of wireless technologies from could out there product. DSL, our Although be small feel lower-quality trying a like share we win mobile portion the

and are migration offer. customers' higher future for consistent broadband that reliability adoption drive solutions speeds, we demands these confident capacity increased ultimately will and needs like to continued We fixed and

significant services. to revenue year-over-year these experienced X.X% addressable meaningfully still opportunity quarter-over-quarter and fiber Moving with accelerating business of On X.X% basis, and adjusted faster than we ahead. an market strong growth growth rates enterprise

of driving the pressure on business caused offering macroeconomic to factors, they team the customers an business items span near-term white-glove the seeing are new expect, means That within the broadband products focus we they ongoing efficiencies While providing profitability creation, control. high on their our further continues services by service all business. into want execute while and on

before, been reach mentioned highs. data, which continues the another new our to content has I demand business in As for

capacity usage CAGR ensured growth. Our downstream fourth nearly balanced with By a grown than the higher average to of making quarter in XX% was upstream. a to of years over the past per that never period, XXx over usage gigabits XXXX, at capital investments has month barrier we data XXX that five same

during XXXX, hours the and peak exceeded of XX%. utilization fourth quarter upstream downstream never of As

an our demand markets. next-gen upgrade of launch against our core customer with with continued less X.X advanced roadmap, we meaningfully we well center of our principles balanced preserve platform are competitors. network contact will our DOCSIS Fidelity the that As investments roadmap than fourth with evolves In to the our staying ahead quarter, integration the curve execute across

were focus on we time including associate service enhanced business, sharpened pleased contact in metrics, With performance to levels see our productivity. transforming key answer, all center and to a

associates Fidelity this our leading platforms the ultimately for rollout to retiring process. with grateful which way very more in MSO, software the separate are the will dozen we We across a than implementation,

XXXX, critical differentiate that our wired This understand in our product customers' their will the next-generation arriving greater customers platform home, we wireless in performance and WiFi provide homes. will see home. satisfaction. Internet do maintenance with customer new within health into and enabling not insight between proactive We to our reliability us

how continue connect we to no So matter invest customers rollout to to reliability devices that service. provide choose seamless and our

and investments. XX,XXX the approximately operations does data on or significant include consistent with strategy less the and of more customers teams grew basis of the management residential fourth full-year long-term in this Ziply customers business aligning This not continued we or investments. and The a of unconsolidated growth reputable XX,XXX where Looking a for at in our XXXX. for financial by Metronet the proven than X% these partners In most compounds sequential total, have businesses sector. quarter

help knowledge Digital of was other retaining Before areas call digital business quarter. handing Officer. digital company's to the pleased Services digital of to evolution expertise to technology Technology role, One will and events I'd Ken to few the Chief visionary all our transformation that like Technology I'm share over combined mention continue from this and In with SVP Ken promoted Ken's roadmap. Johnson the notable Cable to the from Todd, thinking throughout oversight while of lead drive enterprise-wide acumen, will his company. a

the one Network Cable as I'm work. survey. recently named of by of XXXX results the recent that also proud based WICT most was for on workplace to women is their One to top companies note diversity This

are is an purpose-driven of and this of our our and reflection workplace to that recognition, We direct honored a engaging, which enabling by to diverse associates thrive. commitment cultivating inclusive is all

and XX% of XXXX, level Cable As XX% One's management associates, total Board. XX% of represented XX-member of year-end of our positions women

now provide our performance. full a fourth And who will quarter financial recap Todd, of

Todd Koetje

due and with contribution Julie. quarter were Thanks, to revenues the XXXX, beginning million Starting at the $XXX.X Fiber operations fourth XXXX. year other decrease of divestitures million was primarily compared $XXX.X decrease. to to for the Total X.X% in of during of quarter a the the fourth The of revenue. Clearwave XXXX

total revenue for XXXX $XXX.X comparable grew million X.X%. fourth and by quarter or basis, or grew $XXX.X were in X.X% point expenses in improvement. XX.X% to of business basis of the year, revenue an XX.X% X% XXX On by Internet our by the revenues increased prior Residential compared adjusted a Operating million quarter the QX. services revenues revenues of of

in quarter $XX.X These quarter the quarter. year XX.X% of of were million expenses of the XXX to administrative QX were the in and a million point for of fourth XXXX to basis improvement. in revenues revenues $XX.X XX.X% fourth general XXXX, compared compared expenses XXXX prior Selling,

million $XX.X increased quarter fourth the for XX.X% operations from income Our or year-over-year.

share. the for or state This the loss unitary fourth options, tax a our of recognized by one-time quarter, revaluation along we due on income MBI $XX.X per loss expense was tax filing deferred adoption largely net driven position to $XXX.X of with a million In income of million a $XX.X purposes. million non-cash the $XX.XX

for the Adjusted an quarter, increase was to X.X% compared when fourth XXXX. EBITDA $XXX.X million of

basis Our adjusted compared prior EBITDA margin to point XXXX year. of the XX.X%, quarter improvement a was fourth XXX for the

of For million, adjusted compared EBITDA the X.X% full-year, an when increase was XXXX. $XXX.X to

basis margin prior for EBITDA compared adjusted XXX improvement XX.X%, a full-year point was XXXX to Our the year.

of we this EBITDA-generating Clearwave period contributed reminder, that at the Fiber beginning As the XXXX. for results a don't include the to assets

we statements when a providing on the Please in that note XXXX. account EBITDA rates This Hargray's provide were challenges in do required not is non-GAAP an the taken financial into adjusted that due growth allocations corporate adjusted of to part basis. reconciliations

totaled XX.X% quarter fourth Capital EBITDA. of million expenditures XXXX, $XXX.X equates adjusted which for the to of

of million market quarter, for $X.X we activities. million During integration and new the CapEx expansion for $XX.X invested

expenditures totaled related expenditures full-year and EBITDA. EBITDA. excluding integrations, to new For adjusted $XXX.X capital the XX.X% full-year, to of which adjusted the When our incremental for expenditures the million, capital of equates market were capital XX.X% expansion

continuing day-to-day capital we intensity expect associated drive we percentage satisfaction running features capital in invest capital our about the enhanced expenditures, opportunistically network growth. As profitable capabilities, business while of future think and decline and to EBITDA as a customer that to functionality with

As initiatives, historic or privately market expansion grant, maintain our it return via you when funded a us whether expect to relates these considering can investments. discipline to

$XXX.X million less for of EBITDA was XXXX, the X.X% an fourth from capital of Adjusted quarter quarter. the increase prior year expenditures

XX.X% of less increase million, from EBITDA expenditures $XXX.X the adjusted full-year, the an For year. prior was capital

our value. shareholder shareholders XX,XXX In all distributed balanced investment We shares are capital and for existing over return this of we strategy million in long-term repurchased stock building capital, optimization capital proactive the debt, of that and repaid of in $XX.X structure in and XXXX, inorganic allocation with long-term $XX.X investments, network, new our $XX.X organic a aligned million to quarter collectively common includes committed dividends fourth to million.

payments dividend million. made the over and For debt, shares of repaid we million full-year for nearly $XX XXX,XXX $XXX.X over $XX XXXX, million in repurchased

We steadfast our will disciplined, management philosophy a sheet. of remain in proactive our of balance and prudent

and $XXX $X.X billion As term $XXX of liabilities. had our billion, hand, cash million to XXXX, million approximately continue $XXX XX, of consisting cash in free unsecured approximately we million December and end, $X flow. cash notes was and on of convertible lease notes, quarter equivalents generate At we million balance $X.X significant debt in loans, in of finance

had $XXX available revolver. additional the We our for also full borrowings million under

Our for cost was X.XX%. of average weighted quarter the debt

net borrowings we fixed and XX% rate Our ratio X.Xx, long-term of had under was leverage nearly agreements. our

maturities, earlier credit earnings the group enhances at to facilities, this of of improve completed transaction strategic opportunistic core senior cost liquidity we on the all $X our agreements. our and an we in financing approximately disclosed release, existing comparable a committed lenders effectively our billion that with As extend flexibility week,

long-term One's We Cable our our the of support grateful partners are in team future capital for their very confidence and demonstrated strategic and initiatives. ongoing

questions. are that, With now ready we for

Operator

Instructions] with is from [Operator JPMorgan. Our first Phil Cusick question

now Your line is open.

Unidentified Analyst

if Hi. a here. for peers competitors from us thoughts broadband been Phil. primary offering. taking update the on and wondering question. driver strategies mobile on the is I A Nick lot on outlining for growth as your have This could was your Thanks of and you mobile

explore converged So you've been is would that further? that Thanks. you suggest your bundle that would in there seeing markets anything

Julie Laulis

Julie. It's Nick. Hey,

it. spoken we've clamoring our we're we the about Yes. Would we this service think look you best. want on this at add? Anything yet a the explored now, at bit we multiple times, from offering? the business I time. and mind wireless for We've keep past. economics we'll to that We hear an a that provider focused another in they're Right mobile think to of don't customers do open

Todd Koetje

in the consider about data And is it services. would markets, many and Nick, be product, Todd, Yes. of that needs mobile for wireless add, of you yet the them. both, not proposition to that I it's us it's our to when in reliability the reliable think And being converged actually where value rural

Unidentified Analyst

Got you Thank both. it.

Operator

with from comes question next Cowen. Our Greg Williams

Your line is now open.

Gregory Williams

Thanks taking question. Great. my for

on just quarter, more third where a quarter last was It ticked one, this First over little up the nicely ARPU. flattened. in quarter

$X. to across next about alluded equipment a think everyone be the given I dollars. that uptick can You an entire to see as charged Is X% plus fee ARPU up year, So base? extra going overall, is two you that

is through us just margins XXXX. the question helping through Second

you XXX I the think there's some mentioned bps video then that. course, there's parts, cost have costs And lot you leverage it's inflation, can hard they're I mix. the up in pull. into platform. WiFi you of But next-gen year-over-year And XXXX. imagine moving exit of rate, a broadband then, whether

year-over-year would the with margin So great? be if help me you Thanks. trajectory can that

Julie Laulis

ARPU. with start I'll

higher customers took their at not November and majority in XX% is just that driven when which are see majority ARPU as one is selling, Sparklight. equipment adjustment who the people in driving modem, place from large for in rent you're what to versus taking ARPU. which But is tiers. organic and modem the primarily of mean, – the own XXX-plus the the it's gig selling fourth at customers of was migrations I That it's our from well. you customers Sparklight us quarter in existing in speeds So the have three in is migration

was very the The in modem actually quarter. adjustment small

year, the more amount answer yes, by our year of valuing meaning customer choice. ARPU So of vast now the the But will you reliable that. driven next to are They is product. see that this

speed You well, grow equate data. continuing to is together and with see our the that data use and folks have – packages tied

up non-competitive are moving feel and competitive increased And And both. get way, they ARPU a by so best. service serves they the to that in markets, them

Todd Koetje

of driver strategy and continue things a couple than we on delivery services a of very and of if improved margin shift continues product. history and to think we something product address is, to to take an of that being Obviously, benefit our it of expenses the When out and with, there, our us data One Cable record terms I'll are unpack But be, still higher of what margin, things extremely that there. integration looking Greg, smaller can the where at residential had, the margin business is cost question like. about, And cost-effective you will and we our and you'd where more be mean we always meaningful on costs there's growth, cost-efficient along business higher-margin are that obviously, organic I track proven video where been of obviously, you of is product there. our operator always our like have focused mix continue in take out the programming of the even a business where but to execution the

around said, few you moving had that insurance. health a things, are We've as

up moved has little that. everybody a offsets for think I bit that

are key continue platform staying system some large in that costs XXXX focused higher. We confident been software I that you we bit factors had aren't migrations. to that were fully that margins. the expect have a conversion tell driving that. Those But can margin the and that will we drive are costs of up we're on Our even in little though some very to related are some platform XXXX

Julie Laulis

what Well shift we our percentage the is – reason improvement and and is from versus I of think mix mindset actually coming part margin projects. shift of and track the continuous measure our

track. is So something we that

on the helps keep it eye ball. So our

Gregory Williams

it. Got you. Thank

Todd Koetje

you. Thank

Operator

question comes James. Louthan with Frank from Our next Raymond

open. now is line Your

Frank Louthan

market of can of do at to subscriber is the do do that sort you great? the factors? back the horizon? you thank update year, going there Or of can then financial of sustainable the you made broadband you progress a conceptually, see some Day you that update can Analyst positive think be that year if those anything more venture, give do that the that’d Is last an Thanks. you more a on get what that on housing where Can to can growth joint end, you function forward? Great, just macro and you. from statistics us just And you –

Julie Laulis

And So a the you one, broke question. sustainable Frank, growth bit. I'm I'm going with little the sure start up to not first

statistics? Day, update about You on which statistics asked something an from but Investor

Frank Louthan

the venture An update Clearwave. on joint on the

You gave some year-end that back. going at anything metrics so financial the we on can how from is Investor Day, progress that see

Julie Laulis

it. Got

Okay. All right.

growth. sustainable So

to of rest and all loss not that marginal especially quarter, a fourth was need showed the after had that, we taken team growth. the you by So in lightly our year know here, the

and And look connects. conversation One. we especially we know, but a well on missing conversation, going that like are have monolith moves as you If as starts to us, about when for Cable with lower, not you what's competition a household have start We is are competition.

We and about XX,XXX homes past. about is size are geographically our dispersed states, customers throughout XX XX,XXX or average market

that So like. some places what these context you gives to look

of for When overall about as look service the still the we Fiber provide we unlimited XX% wireless, are if our in footprint, in than Our folks, available small. our footprint. of fixed that well. the megs folks about over XX% less about XXX at that's so XX% offering, of competition relatively footprint competitors is available think

the average, have it carbon like? connects We that of in intelligence not have some look is some a trying than Why footprint I what national you we for that? gone do share to example. am do the what again, lower competitor. context, I win does competitive like third-party shows of Because that to that give competition doing So and T-Mobile these they're look assume is,

them. of these some connects negate that But doesn't going that are to still fact the likely

price, So is not at not but get our any quite connects, to cost. any honestly, at job,

responsive think I be to value in meaningful what and mostly, on focusing and which to is a offering them. it But that doing products means is at, we means we're customers is that what need competitors. So really good appropriately and our to updated way

Now that might mean different pricing and packaging.

a recall But on fixed before might fix it in years COVID was to You we time, what, we the blur probably me or now. we versus And probably guess again. that. and point I we XXXX, it there was ARPU growth, were over-rotated XXXX, guess, a had, can

We impacts from have competitors. varied such

made one markets I newer. has which I overbuilder, about that a one have two competitors, think for us. one I any. them of think have that virtually a over Neither impact market decade of is any fiber can of on another and mean have relatively one we two virtually is fiber-based. that

lost because customers market shiny And in new, has been XXXX. after we like and market initially, year growing do and normalizes all the that

So growth keep a with on think, but our profitability bundling way. thing getting HSD there patterns subsidies. that is we that important are in haven't disciplined by And emerge XXXX, the connects our Since I different of competition. again, eye eroded we

to that expect wouldn't start. I So

I being a see we responses. before think And proven get you surgical more might test make out. we're what implement. will measured and little we because slower, that bit something once That but is is we us

low. Our It's so we drive about to churn it that can it that But doesn't lower. same on even we're as XXXX. It's not fine. the well just is as focusing that mean continue

and matter to customers. predictably an a hope fact, answers AI we've with us of help model that I save question. As your partnered company

Frank Louthan

Yes, helpful. And that's the very on JV?

Todd Koetje

Todd. it's Frank, And

was Clearwave side, effective On XXXX. X/X JV the of obviously, JV Fiber the

the business that forward, we But as going starting in anniversary that of is look in well. performance now extremely the momentum will now, we So ours.

Zero. team proven be operationally this team, been expansion, didn't bench, extremely expanding find at great it's pace As leadership to and an those And some team We you very well-capitalized Hargray disciplined focused impressive. that accelerated and under-invested extremely operators accelerated built JV. in of has where and they're proven has was to very out a out participate of selection, we really have leadership The a market an that to go the that that's so had from of one which over they're network our building successful. discussed weaker obviously great and markets as with know, Day opportunity transaction new do benefits extensively we've in in has operational running the

Frank Louthan

Great. All you much. very Thank right.

Operator

Our next from question SVB. with Moffett Craig comes

now Your line is open.

Craig Moffett

Hi. Thank I could. you. if questions, Two

First, having go the to I wonder minutes you were broadband few about if a you conversation ago ARPU. back could just

largely that particularly and your broadband price whole You by just video. have capacity could but a I the wonder ARPU markets talk a longer to Or start bit And about that weaker, in more will grow? where you which out noted get be much will the at services. kind tend Does phasing phase rural think particular, bit what reliable to And markets unaffected are frame carriers change thinking they to more about from very offerings? runway. all those can at out across that then wireless do broadband decision back your be you for rate capacity fixed that we And in offerings of time offering that and the broadband over footprint. see you your second, a higher-speed aggressive your very, are the in less ARPU if at going seemingly how broadband moment, linear

Julie Laulis

up have Craig. appreciate I spoken for actually Thanks that it, so bringing question, to I it. should

broadband you're had and in aware majority not. I our of since that prices service That product in of ARPU XXX of meg product. the footprint. migrated high, well although been two product, I've is doesn't are XXX speeds year which prices know CEO. only majority for again, wireless a First are fixed It of $XX have that being way, for We've this, the majority are, we last our their said, offering meg all, available because XXX meg our the was entry-level choosing above a customers to our

XXX time meg meaningfully And ARPU though that is the is at higher. our even customers choosing. because So price right product is $XX our now, for this are

this has. price the shows that that think product I elasticity

our to and or if of terms the in mentioned, that mean at know that different is can technicalities that, something what Now of sights. sure approach capacity, don't we're Linear said, video. you not a and getting doesn't isn't I I can not. in you if pricing I'm speak I that looking it not as being want that packaging marketing

Todd Koetje

It’s look Craig. definitely Todd. strategy We deemphasizing Yes, video. of at our

first a predominantly, reclamation full a we of terms speeds of from X.X, spectrum are from for if, video We symmetrical of continue of the and of matter the not reclamation data. the of able speeds, in path. to and that side, It's was down in meaningful linear map driven for bit that innovation that. road technological strategy going DOCSIS mover a QAM being reclaim to when, obviously by kind And our that that little part And higher of the to more linear that's spectrum megahertz move of video.

Julie Laulis

What's fun I customer... to too was that, about that the that listening is

Todd Koetje

that again? Sorry, say

Craig Moffett

reasonable I just a to today. so or spectrum megahertz guess around it's dedicated No, to going XXX that's of was say video

Julie Laulis

to was figure I part out. the That's trying

Todd Koetje

that. less than It's

Craig Moffett

Less.

Okay.

Todd Koetje

But immediately when in able data. to XXX we of to gigahertz what our do just X you're terms goes to dedicate

Julie Laulis

but TV who bodes last what blast, a which first to the was only a and time our was other customer his again having was is had Sparklight And calls Sparklight life TV, I listening HSD product. streaming doing services and converted well to was customer I really week not for for using saying in

Craig Moffett

going Okay, for thank to to be interesting that. watch. you That's

Operator

from is question Brandon next Nispel KeyBanc. with Our

is line open. now Your

Brandon Nispel

in I quarter, fourth we're obviously Two see running the out guided is what new had thanks and Todd, day, for getting questions. million. don't for hot. And pretty you it I capital you, related up. be wondering of end at think $XXX But homes a lower clearly like think questions we are us I what of is CapEx, it for was mean standpoint. really to all the from this. and it pass the We taking

where starting from I'm Thanks. program, broadband? And of the doing the repurchase are want I share And you to to you the What just this to position the the thoughts $X.X investment. guess vast mega authorization? company authorization. billion are to trying a then on to trying delever acquire are your larger around understand so Or returns like really majority utilized

Todd Koetje

Brandon. Yes,

And of higher and access rate continue capital equipment, had was or quarters is in are we and the giving XXX, talked XXXX chain in challenges to to we've sure plus a was about that supply were the we we on kind our certain run So minus I run team, year-ago right? is that out XX time, bit guess, but as getting months look on We're elements better higher when would still was it's from good that XX, say rate in was you quarterly little was estimate. what some it at a as navigating anybody's to the at a this a little tools it side, sure of still but cases, making making resources for expand. quarter certain here, definitely quarterly equipment, that it

But we that around – manage number. that will able to so be

in you we available XX. already to not That's year later have, we equipment relates been making already we've that network that in seen many it that early as investing is already lot I which investing is this to go think element the incremental that. others is what of and the don't We're and investment. of sure for I've spacing to that you've XX, all XX, also what spending of will where implementation a XXXX. we've capital is outlined to be and map as But of that on obviously, architecture been generally a to road is network And in in this and lot the of preparing yet proactive ready the investment.

that with as to because pay customer very satisfaction retention, we continue see And conversions WiFi willingness and that actively as in think to investing higher in-home end of around the well we for about that equipment that then advanced the CPE, are customer in-home health. to health retentive and as proactively highly and we thirdly, it relates customer better

around and discipline kind balanced returns capital absolutely feel going IRRs will the can continue we've about. to how talked always Those be the associated as look is things leading we allocate very at as around we to we're what confident we be had there, It's we've with that always of drive key going capital. to that

second the question shares, about repurchasing shares of price in points So where been of especially the half to quarter fourth obviously, your and – and XXXX. have

our take was what because to future. our point number shares, it dollar not at and meaningfully, amount to as we to we'll that in maintain came the be that. able repurchased were shares we price the do in in which of from that We of While other opportunities those the have opportunistic past different was down continue relates to balance accretive on it

And to environment. to in going our capital very leverage a this leverage not comfortable to be go talked we're community markets with but lot the utilizing I've shares investor is, and around where we're repurchase

that conservative balanced also the same $X capital billion extending and of have to I basically we at a what today. our of pricing that discipline lot gave and think is lenders confidence

Brandon Nispel

Thank you.

Todd Koetje

bet. You

Operator

next is with Wells Steven question from Cahall Our Fargo.

Your line is open.

Steven Cahall

I joined little And you. Thank late. a

all you've apologies Maybe been these So just competition. already. first, if on through

Just it increased per of throughout saw is for would XXXX? that, was of the Then if if increasing, quarter throughout think you the that kind And and points continue more QX? a reason XXX do megabit for expect to year. just is you changing think fiber something will challenged net sense persist as adds about in the have competition, talked is of about pace or that any I'm pace And how percentage outlook decent two you that the a you couple wondering, follow-ups. you competition I that to that

Julie Laulis

get I we wouldn't as quarter information. update two is honestly what we we points per Okay. reporting on what know. tools, been that And we've better use the because

of use them side to is. weren't the Maybe can counted We on exactly FCC broadband the we other side the competition see street and not example, we the where in for them. of counting maps now So order street. one

don't diligence where, that say is can we could conclusions think are an what which I'd on we what I But start this that and then once us that think been have set, just now, competition. seen form in it And so tracking getting we we much fashion. you've in get because we that probably pretty draw due there's maybe increase our I is doing

your spreadsheet, and honestly. to challenged the down I was just net think I quite is numbers Why think competition. us in put it's a able it increasing being curate adds, we something like question are on

compression connects. on some competition, don't markets have Steve, in even And we're seeing that

I that. don't it's think So

not think will formation option to We've I profitable aren't in now. I lot that a even I of there's whomever that that think markets competitive, or are the don't offering I'm sand. do be take just household from been my But – customer our might folks low-priced have head again, on moves maintain going base. highly a in right there able not it.

Todd Koetje

in Steve, Yes. around but the truth on pause, contractors still environment, builds, where the all I saying changed markets Fed's last changed our right? were really on when ground they six we're buyer new home months, going, we're meaningfully new basically we've overindexing seen the just know conviction we mean rate construction, local in meaningfully.

Steven Cahall

harder helpful. component? Yes. think residential ARPU environment to broadband That's some do kind related, this really to revenue then about in you to reaccelerate little lean into the of a And trying of try just

Julie Laulis

add you hikes think broadband it I ambition not ARPU, ideally, bet. balanced with approach. I trusted that to most a balanced And value ideally, we drive if can will mean our the we're parent we to take provider. price be approach. a is and be trust But going abuse

Steven Cahall

if Great. And then missed... I sorry

Todd Koetje

when was is the I going driving offline. associated earlier And talking that lot was about heard I but the and really demand might that and no can unpack curve earlier the when missed migration speed not Steve, reliability, have – with have Julie further the the a ARPU, to customer say, with was choice and you Julie you might you which

Steven Cahall

fourth we expectation about rate just you that Yes, for the OpEx pretty quarter. to can be savings think OpEx or about an it Any was would how growth that like XXXX? then on managing great. be looked for in OpEx, significant And might think

Todd Koetje

a the we margins Yes, a of to to expand that really, address saw insurance, here. almost XXX but programming OpEx as the around improvement the of have both savings the our improvement folks on higher even which as can the eye in amount deemphasized, we been really SG&A, close OpEx. it's about a point it XXX basis navigating we but margins think to as continue we from still on driving that. that of lot driven being did little by lot by meaningful product I I and franchise some be think talked continues that where we offset And relates ball to well, bit as health fees video addition the have basis something a point And a

Steven Cahall

any call MDI And on thinking options. we about impact write-down, should And options about that put is those how that have way does on the think and at and then lastly, you're any point? the put there call this

Todd Koetje

valuations we rates and the on were it. meaningfully moved we prior risk-free December last even recall, that's of No. option account value. of end XX. revisited leverage to market That's taken the multiples, higher, that and was which gets so taken to share Fed last the on the on at our obviously year that also annually guys higher dividend, they – into into their did rates year, simulation it when with when get run was through account, have Obviously, business Monte that annually It's discount took go you will that the XXXX where Carlo but

is it's lot. into go non-cash. it to look that it, as whether looking earnings something business an or normalized don't that. like won't of the you It transact look of or that at should but we I will things a So – indication moves the be on how at around

leadership has because us. always MBI in are as They're than great our growth extremely been doing than They MBI business They're lower an interest have us. higher alignment Our is with rural They the and team. penetrated well. business. amazing partners more

with how close the it partnership. And them about very to as stay so will we think we long-term relates

Steven Cahall

you. Thank Great.

little sorry making And yourself bit. you repeat for a

Todd Koetje

right. it. all about worry Don't that's No,

Operator

all for That's we today. have

So I'll team. pass the to back call management the over

Julie Laulis

next today's speaking call and again joining you appreciate Thank Thanks, with to everyone all. look for you, We forward quarter. us Jason.

Operator

you That call. your concludes conference the Thank for participation.

lines. disconnect now may your You

Cable One (CABO) 23 Feb 232022 Q4 Earnings call transcript