Cable One, Inc. · NYSE:CABO

Cable One — Investor Presentation (September 2017)

14 slides from Cable One's investor presentation, Sep 15, 2017

  1. Slide 1: Investor Presentation September 2017

    INVESTOR PRESENTATION CABLEQ~iE’ September 2017

  2. Slide 2: Disclaimer

    Disclaimer Tis presentation has been prepared by Cable One, ne. (Cable ONE, CABO, us, our, ve or the Company), The formation contaned inthis preseniaton is for infornatonal purposes only. The nfarmatn contaned in tis preseiaton i nat investment or fearcia produc advice and i et mtended tobe used ast

  3. Slide 3: Use of Non-GAAP Financial Metrics

    Use of Non-GAAP Financial Metrics The Company uses cern measures tal are nol detned by GAAP W evaluale varius oapects oft busness, Adhusleg ESITOA (abel “Ad) EBITOA In Ins resentation), Aghsted EBITDA Margin (abeled“Ad) EBITDA Wargin’ i hs presentation), Aduisted EBITDA less captal expendtures (bele

  4. Slide 4: Cable ONE's strategy has focus areas

    Cable ONE’s strategy has 4 focus areas 1. Accept and accelerate inevitable and favorable industry product trends Invest in higher growth and higher margin products; harvest others 2. Focus on profitable customers Count cash flows, not subs 3. Rethink cable math to more accurately measure sources of

  5. Slide 5: By accepting inevitable industry trends and focusing on profitable customers, we have delivered strong results

    By accepting inevitable industry trends and focusing on profitable customers, we have delivered strong results Total Revenues ($M) ‘Adj EBITDA and Adj EBITDA Margin ($M) $1,029 3% 46% 36% 31% 39% —~Sa76 $026 $85,807 2019 —«0M~=~=«2015~—~=«2OT8 = ustatve 2013-2014 —~—«2015~—~«OTE Masbate lanaui? Loaz

  6. Slide 6: Our Revenues and Adj EBITDA have improved, ultimately achieving Adj EBITDA Margins of 47% as of Q2 2017

    Our Revenues and Adj EBITDA have improved, ultimately achieving Adj EBITDA Margins of 47% as of Q2 2017 Total Revenues (SM) ‘Adjusted EBITDA ($M) LegacyCABO mi 2015 m2018 2017" m NED LegacyCABO mm 2015 2018 2017" NED ‘Annual #8/ Annual #5 Mustratve LOA lMstratve LOA 2017 Comaina 2017 Combines aa 203

  7. Slide 7: Residential HSD and Business Services are our focus areas

    Residential HSD and Business Services are our focus areas and dominate Cable ONE’s Revenues and Adj EBITDA Revenues by Product ($M) $005 $826 $915 $807 $820 | S779 = Residential HSD = Residential Phone mAdvertising Revenue = Business Services *™ Residential Video = Other Aqj EBITDA by Product ($M) I

  8. Slide 8: Cable ONE math assumes most costs are variable; our cost per PSU is lower than most other MSOs

    Cable ONE math assumes most costs are variable. Under this approach, our cost per PSU is lower than most other MSOs 201. 1016 Average Total Cost per PSU (OPEX+CAPEX)* © Cablevision $58 e@ Charter $55 Wow $52 ’ @ AVERAGE $52 Suddenlink $52 ry “Comeast $50 Cable ONE $50 “Mediacom $47 $38 0 10 20 30 40

  9. Slide 9: Legacy Cable ONE has achieved lower cost per PSU by managing unnecessary costs out of the business

    Legacy Cable ONE has achieved lower cost per PSU by managing unnecessary costs out of the business Legacy Cable ONE Annual Average Headcount | [sents | 2011 2012 2013 2014205 201620176" Legacy Cable ONE Annual Phone Calls (tousands) 5.422 = 3,219 2011 2012 2013 2014 2015 2016 201 Legacy Cable ONE An

  10. Slide 10: Appendix

    Appendix > Reconciliations of Net Income to Adjusted EBITDA, Adjusted EBITDA less Capital Expenditures, and Conversion Rate; and Net Profit Margin to Adjusted EBITDA Margin by Year for 2011 — 2016 > Reconciliations of Net Income to Adjusted EBITDA, Adjusted EBITDA less Capital Expenditures, and Conv

  11. Slide 11: Reconciliations of Net Income to Adjusted EBITDA, by Year

    Reconciliations of Net Income to Adjusted EBITDA, Adjusted EBITDA less Capital Expenditures, and Conversion Rate; and Net Profit Margin to Adjusted EBITDA Margin BY YEAR AND CALCULATION OF ILLUSTRATIVE LQA 2017 COMBINED* (dollars in millions) lustrative | aazo7 mm 21020152016 | Combined Revenue 773

  12. Slide 12: Reconciliations of Net Income to Adjusted EBITDA, by Quarter

    Reconciliations of Net Income to Adjusted EBITDA, Adjusted EBITDA less Capital Expenditures, and Conversion Rate; and Net Profit Margin to Adjusted EBITDA Margin BY QUARTER (dollars in millions) 2015 2016 2017 wQ 2 3 4Q 1Q 2Q 3Q 4Q IQ 2Q Revenue $203. $203 $198 $203 $203 $205 $206 $207 $207 $241 Net

  13. Slide 13: Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA less Capital Expenditures

    Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA less Capital Expenditures BY YEAR AND CALCULATION OF ILLUSTRATIVE LQA 2017 COMBINED‘ (in millions) { Illustrative ! LQA2017 2013 2014 2015 2016 | Combined” Net cash provided by operating activities $237 $206 $246 $252 | $

  14. Slide 14: Slide 14

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