Wed, Oct 2, 10:39 AM (162 days ago)
Cable One, Inc. (CABO) filed an amendment to its Form 10-K for the year ended December 31, 2023, restating prior financial statements due to an error in equity method accounting related to its investment in Clearwave Fiber LLC. This error resulted in overstated net income and understated equity method investment losses across several periods. The restatement does not affect reported revenues or Adjusted EBITDA, and no cash flows were impacted. For 2023, revenues decreased by 1.6% to $1.68 billion, driven by declines in residential video and voice services, partially offset by growth in residential data services, which accounted for 58.4% of total revenues. Net income rose 5.4% to $224.6 million. The company emphasized its strategy to focus on higher-margin residential data and business services while reducing emphasis on video services amidst rising competition and programming costs. The company also identified a material weakness in internal controls over financial reporting, impacting its ability to accurately report financial results. Overall, Cable One's financial condition remains strong, with continued investment in infrastructure and a focus on expanding its service offerings.