Cable ONE, Inc. (NYSE:CABO) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 05:00 pm ET

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Cable ONE, Inc. (NYSE:CABO) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the Cable One Earnings Report Q3 2019 Conference Call. [Operator Instructions].

I would now like to turn the conference over to Steven Cochran. Please go ahead.

Executive
Steven S. Cochran

Thank you Sara, Good afternoon and welcome to Cable One's Third Quarter 2019 Earnings Call. We're glad to have you join us as we review our results. Before we proceed I would like to remind you that today's discussion may contain forward-looking statements relating to future events and expectations. You can find factors that could cause Cable One's actual results to differ materially from these projections listed in today's earnings release and in our recent SEC filings. Cable One is under no obligation and expressly disclaims any obligation except as required by law to update or alter its forward-looking statements whether as a result of new information future events or otherwise. Additionally today's remarks will include the discussion of certain financial measures that are not presented in conformity with U.S. generally accepted accounting principles. Reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be found in our earnings release or on our website at ir.cableone.net. Joining me on today's call is our President and CEO Julie Laulis.

With that let me turn the call over to Julie.

Executive
Julia M. Laulis

Thank you Steven, Good afternoon and thank you for joining us for our third quarter 2019 earnings call. Before getting into our results I want to welcome our more than 400 new associates who join us from Fidelity. I will talk more about the acquisition a little later but we are extremely excited to have them as part of the Cable One team. I'd also like to take a moment to welcome Kris Miller the newest member of our Board of Directors. Kris is a valuable addition who will provide unique insight and an experienced to our already exceptional Board. I'll begin by giving some highlights from the quarter and then talk about a couple of the important events that happened shortly after the quarter end before handing the call over to Steven for a full recap of our financial performance. We are pleased to have once again delivered a quarter of strong performance including year-over-year increases in total revenues of 6.2% and adjusted EBITDA of 14.1%. Our adjusted EBITDA margins increased 340 basis points year-over-year to 49.1% for the quarter. These results illustrates that our business strategy continues to consistently deliver both top-line and adjusted EBITDA growth as well as expanding margins. Speaking of growth we experienced a 3.5% residential HSD unit increase and our residential HSD ARPU was up 4.7% year-over-year resulting in an 8.2% increase in residential HSD revenues. Revenues from business services were up 28% year-over-year or 10.3% excluding the impact of Clearwave.

As you might recall last year we accelerated marketing spend in the third quarter in advance of our NewWave billing system conversion. So we expected to have a tough comparison from a net add standpoint. Given that challenge