NYSE$CABO

Cable One Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Cable One reported an increase in revenue and net income for Q4 2020, driven by growth in residential data and business services.

Cable One reported a 5.7% increase in total revenues to $336.8 million for Q4 2020, driven by a 17.1% increase in residential data revenues and a 3.4% increase in business services revenues. Net income increased by 98.2% to $106.2 million, including a non-cash gain on the sale of the Anniston System. The company also completed several strategic transactions, including an investment in MBI and an amendment to its credit agreement.

  • Total revenues increased by 5.7% to $336.8 million compared to Q4 2019.
  • Net income increased by 98.2% to $106.2 million, including a non-cash gain on the sale of the Anniston System.
  • Residential data revenues increased by 17.1% and business services revenues increased by 3.4% year-over-year.
  • The company invested in Mega Broadband Investments Holdings LLC (MBI) and amended its credit agreement.

Headline financials

Total Revenue

$337M

Previous: $319M+5.7%
EPS (adj)

$7.73

Previous: $9.32-17.1%
Passings

2.2M

Previous: 2.4M-8.3%
Residential Data ARPU

$61.95

Previous: $56.34+10.0%
Residential Video ARPU

$40.23

Previous: $33.28+20.9%
Business Services ARPU

$665.52

Previous: $223.95+197.2%
Capital Expenditures

$75.2M

Previous: $86M-12.5%
Free Cash Flow

$100M

Previous: $70.5M+42.0%
Net Income

$106M

Previous: $53.6M+98.1%
Operating Income

$69.4M

Previous: $66.4M+4.5%
Gross Profit

$237M

Previous: $215M+10.2%
Cash & Equivalents

$575M

Previous: $125M+358.8%
Total Assets

$4.49B

Previous: $3.15B+42.4%
Stock-Based Comp

$4.08M

Previous: $3.14M+29.9%

Revenue & EPS history

Cable One · Revenue · Quarterly

$337M

Q4 2020+5.7%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Cable One · $278M total across 4 segments · Q4 2020

  • Residential Data
    $176M+17.3%
  • Residential Video
    $67.4M-15.9%
  • Other
    $24.6M+20.6%
  • Residential Voice
    $9.77M-11.2%

Forward guidance

Cable One anticipates a positive impact on 2021 residential data revenues due to customer retention and continued growth, but faces uncertainties related to the COVID-19 pandemic's impact on the economy and its business.

Tailwinds

  • Positive impact on 2021 residential data revenues is expected.
  • Significant number of residential data customers acquired during 2020 are expected to be retained.
  • Continued growth of residential data customers is anticipated in 2021.
  • Normalization of labor costs.
  • Resumption of billing late charges, reconnect fees, and data overage fees.

Headwinds

  • Uncertainties related to the impact of the COVID-19 pandemic on the overall economy.
  • Uncertainties related to the impact of the COVID-19 pandemic on the Company’s business.
  • The Company's ability to sustain continued customer growth is uncertain.
  • The level of bad debt expense is uncertain.
  • Whether some of the expense reductions realized during the second half of 2020 will continue is uncertain.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.8%

Avg return

Earnings day

-2.2%

Avg return

5 days after

-2.3%

Avg return

30 days after

56%

27 / 48 earnings

Positive

+8.3%

Q3 2023

Best reaction

-42.5%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%-29.7%-41.5%
Q4 2025+6.0%+27.0%+4.7%
Q3 2025-1.8%-14.4%-4.6%
Q1 2025-42.5%-33.4%-44.1%
Q3 2024-3.6%-3.6%+1.0%
Q2 2024-4.6%-3.6%-14.7%
Q1 2024-4.6%-0.9%-2.7%
Q4 2023-7.3%-6.3%-9.1%
Q3 2023+8.3%+10.1%-1.3%
Q2 2023-8.4%-6.5%-14.0%
Q1 2023-3.6%-5.6%-13.7%
Q4 2022-5.8%-5.8%-8.4%
Q3 2022-16.0%-19.9%-9.6%
Q2 2022-4.2%-7.9%-21.3%
Q1 2022-1.1%-3.3%+13.1%
Q4 2021+3.1%+2.2%+7.9%
Q3 2021+1.2%+3.1%+3.9%
Q2 2021+1.3%+3.6%+2.4%
Q1 2021+3.4%+2.4%+4.5%
Q4 2020-4.8%-9.5%-10.4%
Q3 2020+1.9%-0.8%+11.0%
Q2 2020+4.1%+1.6%+0.4%
Q1 2020+2.6%-0.5%-2.3%
Q4 2019-1.7%+0.7%-8.3%
Q3 2019+6.1%+11.1%+14.0%
Q2 2019+3.4%+3.1%+7.7%
Q1 2019-0.1%+1.4%+8.4%
Q4 2018-1.1%-0.9%+2.2%
Q3 2018-2.9%-2.6%-3.2%
Q2 2018+3.3%+3.9%+13.5%
Q1 2018+8.0%+10.7%+10.1%
Q4 2017+0.1%+1.7%+0.9%
Q3 2017+0.2%-3.1%-2.2%
Q2 2017-1.8%-3.3%-2.8%
Q1 2017+0.5%-1.6%+8.7%
Q4 2016-1.6%-3.8%-2.9%
Q3 2016-0.4%+0.1%+5.7%
Q2 2016+1.9%+1.7%+9.1%
Q1 2015+5.2%
Q1 2016+3.8%
Q4 2013+0.8%
Q1 2014+0.8%
Q4 2015+5.1%
Q3 2014+0.2%
Q3 2015-0.6%
Q4 2014+3.6%
Q2 2014+3.6%
Q2 2015+0.1%

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