Cable ONE, Inc. (NYSE:CABO) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:00 pm ET

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Cable ONE, Inc. (NYSE:CABO) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Cable One Earnings Report Q2 2020 Conference Call. [Operator Instructions]

I would now like to turn the conference over to Mr. Steven Cochran, Chief Financial Officer. Please go ahead, Mr. Cochran.

Executive
Steven S. Cochran

Thank you, Lexi. Good afternoon, and welcome to Cable One's second quarter 2020 earnings call. We appreciate you joining us today. 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 a 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, Julia Laulis.

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

Executive
Julia M. Laulis

Thank you, Steven. Good afternoon. I want to thank everyone for joining us for our second quarter earnings call. Before discussing the quarter, I want to welcome our new associates from ValueNet, an all-fiber Internet service provider operating in Kansas. This transaction closed on July 1, and we are very excited to have ValueNet join the Cable One family of brands. We will begin to see them in our financial results starting in the third quarter. In addition to ValueNet, we completed a few other investments since we last spoke with you, which Steven will highlight later in the call. Our second quarter results epitomize the resiliency of our business model, especially in the face of times of uncertainty, like we are seeing now. For the health and safety of our associates and communities, we made deliberate choices that resulted in us foregoing revenues and increasing costs.

Even with those negative elements impacting results, we grew our quarter-over-quarter revenues by 14.9% and our adjusted EBITDA by 18.6%, while increasing our adjusted EBITDA margin 150 basis points to 49.7%. To meet the increased demand from new residential data customers, we focused our efforts on completing HSD-only connect for most of the second quarter. We added more than 44,000 residential HSD customers since the end of the first quarter of 2020, which excluded approximately 2,000 new customers who never paid us and are at high risk for disconnections, and our year-over-year growth increased to 23.7%. The health crisis has reinforced the need for reliable, value-priced and flexible HSD service. And we believe that, as a result of years of investment and the commitment of our associates, our business was well positioned to handle the increased demand. Meanwhile,