Cable ONE (CABO) Beats Q2 Earnings & Revenue Estimates
Zacks Investment Research | Aug 03, 2016 11:28PM ET
Small-sized cable MSO (multi service operator) Cable ONE Inc. (NYSE:CABO) reported strong financial results in the second quarter of 2016. Both the top and the bottom line surpassed the respective Zacks Consensus Estimate.
GAAP net income in the reported quarter was $26.6 million or $4.62 per share compared with a net income of $21.4 million or $3.67 per share in the year-ago quarter. Second quarter earnings per share of $4.62 outpaced the Zacks Consensus Estimate of $4.53.
Total revenue was $204.6 million, up 0.9% year over year and ahead of the Zacks Consensus Estimate of $201 million. Of the total, Residential Data revenues were approximately $86 million, up 18.7%. Residential Video revenues were $74 million, down 14.2%. Residential Voice revenues were $10.9 million, down 11.5%. Business Services segment generated $24.5 million revenues, up 12%. Advertising sales were $6.6 million, down 9.6%. Other revenues were $2.5 million, up 0.9%.
In the reported quarter, operating expenses totaled $154 million, down 7.7% year over year. Operating income was $50.6 million, up a substantial 41.3% year over year. Adjusted EBITDA was $88.9 million, up 14.6% year over year. Adjusted EBITDA margin was 43.5% compared with 38.3% in the year-ago quarter.
Cash Flow
In the second quarter of 2016, Cable ONE generated a little over $48 million of cash from operation compared with $61.5 million in the prior-year quarter. However, free cash flow in the reported quarter was $51.3 million versus $40 million in the year-ago quarter.
Liquidity
At the end of the second quarter of 2016, Cable ONE had $102.7 million of cash and cash equivalents compared with $119.2 million at the end of 2015.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.