Q1 2025 Cable One Inc Earnings Call

Okay.

Rebecca: Thank you for standing by my name is Rebecca and I will be your conference operator today at this time I would like to welcome everyone to the cable one first quarter 'twenty 25 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there.

Operator: Thank you for standing by.

Rebecca: My name is Rebecca, and I will be your conference operator today.

Rebecca: At this time, I would like to welcome everyone to the Cable ONE first quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise.

Rebecca: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you.

Speaker Change: It will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question Press Star. One again. Thank you I will now turn the call over to Jordan Marquee Vice President.

Jordan Morkey: I will now turn the call over to Jordan Morkey, Vice President of Investor Relations. Please go ahead.

Speaker Change: Investor Relations. Please go ahead.

Jordan Marquee: Good afternoon, and welcome to cable one's first quarter 2025 earnings call. We're glad to have you join us as we review our results for.

Jordan Morkey: Good afternoon and welcome to Cable ONE's first quarter 2025 earnings call. We're glad to have you join us as we review our results.

Jordan Morkey: Before we proceed, I would like to remind you that today's discussion contains forward-looking statements relating to future events that involve risks and uncertainties, including statements regarding future broadband revenue, customer growth, connects and churn rates, new product rollouts, customer yield from new build activities, including related costs, future cash flow, future ARPU, future levels of competition, capital expenditures, the anticipated impact of our change in dividend policy, our ability and sources of capital to fund the retirement of our 0% convertible notes in 2026, the anticipated after-tax proceeds from the expected monetization of certain investments, and our future financial performance, capital allocation policy, leverage ratios, and financing plan.

Jordan Marquee: Before we proceed I would like to remind you that today's discussion contains forward looking statements relating to future events that involve risks and uncertainties, including statements regarding future broadband revenue customer growth next in churn rates, new product rollouts customer yield from newbuild activities, including related call.

Jordan Marquee: Future cash flow future RP future levels of competition capital expenditures anticipated impact of our change in dividend policy, our ability and sources of capital to fund the retirement of our zero percent convertible notes in 2026 anticipated after tax proceeds from the expected.

Jordan Marquee: Monetization of certain investments and our future financial performance capital allocation policy leverage ratios and financing plans.

Jordan Morkey: You can find factors that could cause Cable ONE's actual results to differ materially from the forward-looking statements discussed during today's call and today's earnings release and in our SEC filings, including our annual report on Form 10-K. 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.

Jordan Marquee: You can find factors that could cause cable one's actual results to differ materially from the forward looking statements discussed during today's call and today's earnings release and in our SEC filings, including our annual report on Form 10-K K.

Jordan Marquee: 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.

Jordan Morkey: 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, or GAAP. When we refer to free cash flow during today's call, we mean adjusted EBITDA, less capital expenditures, as defined in our earnings release. 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.

Jordan Marquee: 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 or GAAP.

Jordan Marquee: We refer to free cash flow during today's call. We mean adjusted EBITDA less capital expenditures as defined in our earnings release 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.

Julie Lewis: Joining me on today's call is our president and CEO, Julie Lewis and Todd <unk>, our CFO with that let me turn the call over to Julie.

Jordan Morkey: Joining me on today's call is our President and CEO, Julia Laulis, and Todd Koetje, our CFO.

Jordan Morkey: With that, let me turn the call over to Julia.

Julie Lewis: Thank you Jordan and good afternoon, everyone. We appreciate you joining us for today's call.

Julia Laulis: Thank you, Jordan, and good afternoon, everyone. We appreciate you joining us for today's call. Today, I want to unpack the factors which underline my belief that we will achieve long-term subscriber growth and grow residential broadband revenue in 2025 and beyond. As I noted during our year-end call in February, we are executing on a multi-year plan to achieve sustained profitable growth in a rapidly changing and more competitive environment. While our first quarter customer results were not what we wanted, a closer look at how the quarter unfolded, along with multiple green shoots of growth now emerging, presents a more promising path forward.

Julie Lewis: Today, I want to unpack the factors, which underlying my belief that we will achieve long term subscriber growth and grow residential broadband revenue in 2025 and beyond.

Julie Lewis: As I noted during our year end call in February we are executing on a multi year plan to achieve sustained profitable growth in a rapidly changing and more competitive environment.

Julie Lewis: While our first quarter customer results were not what we wanted a closer look at how the quarter unfolded along with multiple green shoots of growth now emerging presents a more promising path forward.

Julia Laulis: As I'll detail further, we believe much of the noise of Q1 is behind us. With the right people, platforms and processes in place, we're building a more effective and scalable customer acquisition engine, one that we believe will drive meaningful growth over the long term. We work very hard to listen to our investors, and right now every discussion focuses on long-term broadband customer growth. So, I want to spend most of my time today discussing that topic. Let me start by addressing our first quarter residential broadband customer numbers. The key driver of our customer decline in the first quarter was lower than expected connect.

Julie Lewis: I'll detail further we believe much of the noise of Q1 is behind us with the right people platforms and processes in place. We're building a more effective and scalable customer acquisition engine. One that we believe will drive meaningful growth over the long term.

Julie Lewis: We work very hard to listen to our investors and right. Now every discussion focuses on long term broadband customer growth.

Julie Lewis: So I want to spend most of my time today discussing that topic.

Julie Lewis: Let me start by addressing our first quarter residential broadband customer numbers.

Julie Lewis: The key driver of our customer decline in the first quarter was lower than expected connects.

Julia Laulis: Driving growth through NewConnect has been the focus of our plans, and I'll speak more about the early progress we are seeing in a moment. Our results were further impacted by unusual churn events, which are now behind us. With churn already reverting to historically low levels and with our plans to steadily improve connects underway, we remain confident in our ability to deliver residential broadband growth over time. One of the key drivers of sustainable growth is the strength of our customer retention. After excluding the unusual events of this quarter, our churn levels remained historically low. And we're taking deliberate action to keep them there.

Julie Lewis: Driving growth through new connect has been the focus of our plans and I'll speak more about the early progress we are seeing in a moment.

Julie Lewis: Our results were further impacted by unusual churn events, which are now behind us with churn already reverting to historically low levels and with our plans to steadily improve connects underway. We remain confident in our ability to deliver residential broadband growth over time.

One of the key drivers of sustainable growth is the strength of our customer retention.

Julie Lewis: After excluding the unusual events of this quarter, our churn levels remained historically low.

And we're taking deliberate actions to keep them there.

Julia Laulis: Guided by our promise to keep our customers connected to what matters most, we are proactively enhancing our retention. A great example of this is our homegrown AI-driven churn propensity model, which rapidly identifies the customers most at risk of leap. Once identified, we take targeted action to engage and retain them. The combination of this high touch plus high tech approach reflects our broader commitment to providing an effortless yet personalized customer experience with neighborly service that sets us apart. Importantly, we believe we are positioned for stronger performance through the remainder of the year, supported by a return to a more normalized term profile, our plans to drive higher connects, and continued efforts to compete effectively throughout the MSO.

Julie Lewis: Got it by our promise to keep our customers connected to what matters. Most we are proactively enhancing our retention efforts a great example of this is our homegrown AI driven churn propensity models, which rapidly identifies the customers most at risk of leaving.

Julie Lewis: Once identified we take targeted action to engage and retain them.

Julie Lewis: Combination of this high touch high Tech approach reflects our broader commitment to providing an effortless yet personalized customer experience with neighborly service that sets us apart.

Julie Lewis: Importantly, we believe we are positioned for stronger performance through the remainder of the year supported by a return to a more normalized churn profile, our plans to drive higher connect and continued efforts to compete effectively throughout the MSL.

Julia Laulis: I'd like to highlight several encouraging green shoots that we believe contribute to our future growth, particularly through increased connect. To start, I'll share an update on the products we've introduced for value-conscious customers, which we believe will play an important role in our broader growth strategy. First, there's our PAYGO product, which we piloted specifically for the Value by Choice customer. We've rebranded this product as Flex Connect, as it effectively competes with cell phone internet by providing faster speeds, along with a more reliable connection and unlimited data, all at a great value with ultimate ease of use.

Julie Lewis: I'd like to highlight several encouraging green shoots that we believe contribute to our future growth, particularly through increased connects to start I'll share an update on the products. We've introduced for value conscious customers, which we believe will play an important role in our broader growth strategy.

Julie Lewis: First there's our paygo product, which we piloted specifically for the value by choice customer.

Julie Lewis: We have rebranded this product as flex connect as it effectively competes with cell phone internet by providing faster speeds, along with a more reliable connection and unlimited data all at a great value with ultimate ease of use.

Julia Laulis: Since launching the pilot, we've seen growth in both customer count and ARPU within this cohort as the ability to choose their speed, unlike cell phone internet, has led many to upgrade to higher tiers that better fit their needs. We will begin to market FlexConnect aggressively across the MSO and expect that it will be an effective tactic to increase connect. Second, we are now piloting Internet Lift, a product designed to serve the value-by-need customer. This offering is available to individuals who meet specific eligibility criteria, and we're taking a targeted local approach to reach them. Internet Lyft represents an incremental broadband revenue opportunity for us.

Julie Lewis: Since launching the pilot we've seen growth in both customer count and <unk> within this cohort.

Julie Lewis: The ability to choose their speed. Unlike cell phone Internet has led many to upgrade to higher tiers that better fit their needs will.

Julie Lewis: We will begin to market flex connect aggressively cross the MSL and expect that it will be an effective tactic to increased connects.

Julie Lewis: Second we are now piloting internet lift a product designed to serve the value by need customer.

Julie Lewis: This offering is available to individuals who meet specific eligibility criteria and we're taking a targeted local approach to reach them.

Julie Lewis: Internet left representing incremental broadband revenue opportunity for US early pilot results show that lift is bringing additional customers to us with minimal risk of cannibalizing our existing base.

Julia Laulis: Early pilot results show that Lyft is bringing additional customers to us with minimal risk of cannibalizing our existing base. We plan to accelerate our marketing efforts for Lyft across targeted portions of the MSO with broader rollout beginning in the weeks ahead. In addition to new products, we're leaning into strategic infrastructure innovations that support long-term growth. One example is how we're re-engineering our approach to selecting and executing new builds to acquire customers more efficiently. Moreover, we're beginning to see early signs that this is working. Stronger early penetration means we now expect the same number of passings to yield more customers within the first two quarters of release.

Julie Lewis: We plan to accelerate our marketing efforts for lift across targeted portions of the NSO with broader rollout beginning in the weeks ahead.

Julie Lewis: In addition to new products, we're leaning into strategic infrastructure innovations that support long term growth.

Julie Lewis: One example is how we're re engineering our approach to selecting and executing new builds to acquire customers more efficiently. Moreover, we are beginning to see early signs that this is working stronger early penetration means we now expect the same number of passing to yield more customers within the first two.

Julie Lewis: Quarters of release.

Julia Laulis: At the end of the day, our ability to grow our customer base comes down to two things. How effectively we retain existing customers, and we're doing that exceedingly well as reflected in our continued low churn rate, and how compelling our value proposition is for new customers. While no single product or initiative stands alone as the driver of growth, together they create a powerful ecosystem of choice, including flexibility, reliability, and neighborly service for our customers. This not only improves our customers' lives, but it also supports our plan for long-term broadband revenue growth. Of course, none of this happens without the right people, and we have the team and the organizational structure in place to make it happen.

Julie Lewis: At the end of the day, our ability to grow our customer base comes down to two things.

Julie Lewis: <unk>, we retain existing customers and we're doing that exceedingly well as reflected in our continued low churn rate and how compelling our value proposition is for new customers.

Julie Lewis: While no single product or initiative stands alone as the driver of growth together, they create a powerful ecosystem of choice, including flexibility reliability and neighbourly service for our customers.

Julie Lewis: This not only improves our customer's lives, but it also supports our plan for long term broadband revenue growth.

Julie Lewis: Of course, none of this happens without the right people and we have the team and the organizational structure in place to make it happen.

Julia Laulis: I'm incredibly proud of the talent, experience, and momentum within our new customer acquisition and retention teams. Their energy, combined with strong collaboration across other functional areas, gives us confidence that we are going to see positive results. Turning to ARPU, we saw a slight dip this quarter, driven by a variety of small factors, including promotional offers, which have proven track records of strong retention, increased adoption of AutoPay Plus and its associated discount, and credits issued to certain customers impacted by third-party fiber. That said, ARPU remains stable, and the trends that we see support growth in the coming quarters.

Julie Lewis: I'm incredibly proud of the talent experience and momentum within our new customer acquisition and retention teams their energy.

Julie Lewis: Bind with strong collaboration across other functional areas gives us confidence that we're going to see positive results.

Julie Lewis: Turning to <unk>, we saw a slight dip this quarter driven by a variety of small factors, including promotional offers which have proven track records of strong retention increased adoption of RFA, plus and its associated discounts and credits issued to certain customers.

Julie Lewis: <unk> by third party fiber cuts.

Julie Lewis: That said <unk> remains stable and the trends that we see support growth in the coming quarters using.

Julia Laulis: These include higher sell-in of our gig and multi-gig products, momentum from new product offerings, and the number of discounts scheduled to roll off. Taken together, these factors position us well to improve ARPU through the balance of the year. Related to the potential growth of ARPU, I also want to highlight the continued growth of our SecurePlus product, which has seen a 16% increase in customer adoption since the start of 2025. SecurePlus delivers a suite of security-focused features, including remote access to the home network and household-wide password management. Secure Plus is available a la carte for $8 a month or as part of our Ultimate Wi-Fi Bundle, which we introduced last November at $24.99 a month.

Julie Lewis: These include higher sell in of our gig and multi gig products momentum from new product offerings and the number of discount scheduled to roll off.

Julie Lewis: Taken together these factors position us well to improve <unk> through the balance of the year.

Julie Lewis: Related to the potential growth of <unk> I also want to highlight the continued growth of our secure plus product, which has seen a 16% increase in customer adoption since the start of 2025.

Julie Lewis: Secure plus delivers a suite of security focused features including remote access to the home network and household wide password management.

Julie Lewis: <unk> plus is available Ala carte for $8, a month or as part of our ultimate Wi Fi bundle, which we introduced last November at 24 99 per month.

Julia Laulis: The bundle is resonating well with customers, with 17% of new customers choosing it this quarter, a strong signal that our approach is aligned with the needs of today's connected homes. When you combine these trends with our roadmap and ongoing executable plan, I remain confident in our ability to grow residential broadband revenue in 2025.

Julie Lewis: Bundle is resonating well with customers with 17% of new customers choosing it this quarter a strong signal that our approach is aligned with the needs of today's connected homes.

Julie Lewis: When you combine these trends with our roadmap and ongoing executable plan I remain confident in our ability to grow residential broadband revenue in 2025.

Julia Laulis: Finally, before turning the call over to Todd for a review of our financial performance, I want to touch briefly on our decision to revise our capital allocation strategy, specifically the suspension of our dividend. We remain committed to a balanced approach to capital allocation, and after careful consideration, we have decided to suspend our quarterly cash dividend in order to accelerate our debt reduction strategy and invest in organic growth initiatives. As Todd will cover in his remarks, we believe this change will bolster our financial strength and enhance our ability to proactively access the capital markets on favorable terms. With confidence in our strategy, the strength of our team and the plans we're putting into action, we're well positioned to execute on our goals through the remainder of the year.

Julie Lewis: Finally, before turning the call over to Todd for a review of our financial performance I want to touch briefly on our decision to revise our capital allocation strategy.

Julie Lewis: Pacifically the suspension of our dividend, we remain committed to a balanced approach to capital allocation and after careful consideration, we have decided to suspend our quarterly cash dividend in order to accelerate our debt reduction strategy and invest in organic growth initiatives.

Julie Lewis: Todd will cover in his remarks, we believe this change will bolster our financial strength and enhance our ability to proactively access to capital markets on favorable terms.

Julie Lewis: With confidence in our strategy the strength of our team and the plans we are putting into action, we are well positioned to execute on our goals through the remainder of the year.

Julia Laulis: We remain focused on our long term objectives of residential broadband customer and revenue growth while maintaining the financial discipline necessary to sustain strong free cash flow generation.

Julie Lewis: We remain focused on our long term objectives of residential broadband customer and revenue growth, while maintaining the financial discipline necessary to sustain strong free cash flow generation.

Todd Koetje: And now, Todd, who will provide a recap of our first quarter financial performance. Thanks, Julie. Beginning with the top line, for the first quarter of 2025, our total revenues were $380.6 million, compared to $404.3 million in the first quarter of 2025. Residential data revenues decreased $10.7 million, or 4.5% year over year. During the first quarter, residential data subscribers and ARPU both decreased by 1.1%. However, as Julie noted, we continue to have confidence in our execution strategy to deliver residential broadband revenue growth in 2025.

Tom: And now Tom.

Julie Lewis: Todd.

Julie Lewis: Provide a recap of our first quarter financial performance.

Todd: Thanks, Julie beginning with the top line for the first quarter of 2025, our total revenues were $386 million compared to $404 $3 million in the first quarter of 2024.

Todd: Residential data revenues decreased $10 $7 million or four 5% year over year.

Todd: During the first quarter residential data subscribers and <unk>, both decreased by one 1%.

Todd: However, as Julian noted, we continue to have confidence in our execution strategy to deliver residential broadband revenue growth in 2025.

Todd Koetje: The remaining decrease in total revenues was primarily attributable to a decrease in residential video revenues of $9.6 million, or 15.8% year-over-year, driven by losses in video subscribers as we continue to navigate the final phases of our video product lifestyle. On the business services side, for the first quarter of 2025, business data revenues grew by 1.2% compared to Q1 of 2025. As we mentioned earlier this year, our carrier and enterprise fiber businesses remain strong, delivering consistent results with an average contract term of about five years. Carrier sales recently reached their highest monthly level since 2022, and we secured several new multi-million dollar, long-term contracts that not only add recurring revenue, but also expand our network reach into new commercial areas, setting the stage for future growth.

Todd: The remaining decrease in total revenues was primarily attributable to a decrease in residential video revenues $9 6 million or 15, 8% year over year.

Todd: By losses in video subscribers as we continue to navigate the final phases.

Todd: Video product lifecycle.

Todd: On the business services side for the first quarter of 2025 business data revenues grew by one 2% compared to Q1 of 2024 as.

Todd: As we mentioned earlier this year, our carrier and enterprise fiber businesses remained strong delivering consistent results with an average contract term of about five years.

Todd: Carrier sales recently reached their highest monthly level since 2022, and we secured several new multi million dollar long term contracts not only add recurring revenue, but also expand our network reach into new commercial areas setting the stage for future growth.

Todd Koetje: Operating expenses were $99.9 million, or 26.2% of revenues in the first quarter of 2025, compared to $106.5 million, or 26.3% of revenues in the prior year quarter, with a decrease driven largely by a reduction in programming and labor. Scaling, general, and administrative expenses were $95.4 million for the first quarter of 2025, compared to $90.4 million in the prior year quarter. SG&A's percentage of revenue was 25.1% for Q1 of 2025, compared to 22.4% for Q1 of 2024, with the increase driven largely by non-cash stock-based compensation, billing system implementation costs, and insurance-related costs. partially offset by a reduction in payroll costs and improved bad debt experience.

Todd: Operating expenses were $99 9 million or 26, 2% of revenues in the first quarter of 2025 compared to $106 $5 million or 26, 3% of revenues in the prior year quarter with the decrease driven largely by a reduction in programming and labor costs.

Todd: Selling general and administrative expenses were $95 4 million for the first quarter of 2025 compared to $94 million in the prior year quarter.

Todd: SG&A as a percentage of revenue was 25, 1% for Q1 of 2025% compared to 22, 4% for Q1 of 2024 with the increase driven largely by noncash stock based compensation.

Todd: Ladies system implementation costs and insurance related costs.

Todd: Partially offset by a reduction in payroll costs and improved bad debt expense.

Todd Koetje: That income was $2.6 million for the first quarter of 2025, compared to $37.4 million in the first quarter of 2024, driven by lower income from operations and an increased non-cash equity method accounting loss in Q1 of 2025. and Justin Iveda was $203 million in Q1 of 2025, representing a 53.3% margin compared to $217 million, a 53.7% margin in Q1 of 2020. Capital expenditures of $71.1 million in Q1 were $5.2 million or 8% higher than in Q1 of last year. During the quarter, we invested $7.1 million of CapEx for new market expansion projects and $3.9 million for integration equity.

Todd: Net income was $2 6 million for the first quarter of 2025 compared to $37 4 million in the first quarter of 2024, driven by lower income from operations and an increased noncash equity method accounting loss in Q1 of 2025.

Todd: Adjusted EBITDA was $203 million in Q1 of 2025, representing a 53, 3% margin compared to $217 million, a 53, 7% margin in Q1 of 2024.

Todd: Capital expenditures of $71 $1 million in Q1, or $5 2 million or 8% higher than in Q1 of last year during.

Todd: During the quarter, we invested $7 $1 million of Capex for new market expansion projects and $3 9 million for integration activities.

Todd Koetje: We expect the impact of any tariffs to be manageable and we are well positioned to carry out our previously outlined plan for total CapEx in the low 300s for the full year. Adjusted EBITDA less capital expenditures was $131.6 million in the first quarter of 2025, or 65% as a percentage of adjusted EBITDA.

Todd: We expect the impact of any tariffs to be manageable and we are well positioned to carry out our previously outlined plan for total capex in the low three hundreds for the full year.

Todd: Adjusted EBITDA less capital expenditures was $131 6 million in the first quarter of 2025 or 65% as a percentage of adjusted EBITDA.

Todd Koetje: We will continuously assess the optimal allocation of the significant cash flow generated by our business, maintaining a commitment to long-term growth initiatives and a highly disciplined, conservative balance sheet management strategy.

Todd: We will continuously assess the optimal allocation of the significant cash flow generated by our business maintaining a commitment to long term growth initiatives in a highly disciplined conservative balance sheet management strategy as.

Todd Koetje: As Julie said, after careful and extensive consideration, we have decided to suspend our quarterly cash dividend on our common share. This represents approximately $67 million annually and over $200 million of discretionary free cash flow over the next three years that we will be able to allocate towards accelerated debt repayment, refinancing support, and ongoing investment in organic growth initiatives. While our near-term priorities will be centered around fortifying our balance sheet and investing in long-term growth, we will also remain balanced with our return of capital to shareholders and will opportunistically evaluate future share repurchases under our remaining $143 million authorization, subject to achieving lower leverage.

Todd: As Julie said after careful and extensive consideration we have decided to suspend our quarterly cash dividend on our common shares.

Todd: This represents approximately $67 million annually and over $200 million of discretionary free cash flow over the next three years that we will be able to allocate towards accelerated debt repayment.

Todd: Refinancing support and ongoing investment in organic growth initiatives.

Todd: While our near term priorities will be centered around fortifying our balance sheet and investing in long term growth. We will also remain balanced with our return of capital to shareholders and we will opportunistically evaluate future share repurchases under our remaining $143 million authorization subject to achieving.

Todd: Lower leverage levels.

Todd Koetje: We repaid nearly $45 million of debt in the quarter, including $40 million of early debt repayment, along with an additional $10 million subsequent to the quarter close. Since Q2 of 2023 through today, excluding borrowing associated with our recently renegotiated MBI partnership agreement. Our total debt repayment has exceeded $450 million. As of March 31st, we had approximately $149 million of cash and cash equivalents on hand, and our debt balance was approximately $3.6 billion, consisting of approximately $1.7 billion in term loans, $920 million in convertible notes, $650 million in unsecured notes, $273 million of revolver borrowings, and $3 million of finance lease liability.

Todd: We repaid nearly $45 million of debt in the quarter, including $40 million of early debt repayment, along with an additional $10 million subsequent to the quarter close.

Todd: Since Q2 of 2023 through today, excluding borrowing associated with our recently renegotiated MDI partnership agreement.

Todd: Our total debt repayment has exceeded $450 million.

Todd: As of March 31, we had approximately $149 million of cash and cash equivalents on hand, and our debt balance was approximately $3 6 billion.

Todd: Consisting of approximately $1 7 billion in term loans $920 million in convertible notes.

Todd: <unk> hundred $50 million unsecured notes $273 million of revolver borrowings and $3 million of finance lease liabilities.

Todd Koetje: We also had $977 million available for additional borrowings under our $1.25 billion Committed Revolving Credit Facility as of March 31. Our weighted average cost of debt for the first quarter of 2025 was 3.9%, and our net leverage ratio on a last quarter annualized basis was just north of four times. As we continue our accelerated debt repayment and invest in EBITDA growth initiatives, we remain confident this ratio will decline, and we reiterate our expectations that our leverage will remain below four times pro forma for the potential MBI consolidation in late 2026. A large majority of our borrowings are either fixed issuance or have been synthetically fixed at underlying base rates that are approximately half of the prevailing floating .

Todd: We also had $977 million available for additional borrowings under our $1 billion to $5 billion committed revolving credit facility as of March 31.

Todd: Our weighted average cost of debt for the first quarter of 2025 was three 9% and our net leverage ratio on a last quarter annualized basis was just north of four times.

Todd: As we continue our accelerated debt repayment and invest in EBITDA growth initiatives. We remain confident this ratio will decline and we reiterate our expectations that our leverage will remain below four times pro forma for the potential MDI consolidation in late 2026.

Todd: The large majority of our borrowings are either fixed issuance or had been synthetically fixed and underlying base rates that are approximately half of the prevailing floating rates.

Todd Koetje: The nearest final maturity for any of our data instruments, our 575 million of 0% convertible notes, does not occur until 2026. Given the available capacity under our revolving credit agreement and our free cash flow generation, we would be well prepared to retire those instruments without accessing the capital markets for additional incremental capital. However, as we previously stated, we will remain ready and opportunistic in evaluating attractive windows in the capital.

Todd: The nearest final maturity for any of our debt instruments are $575 million of zero percent convertible notes does not occur until 2026, given the available capacity under our revolving credit agreement and our free cash flow generation, we would be well prepared to retire those instruments without accessing the capital Mark.

Todd: That's for additional incremental capital.

Todd: However, as we previously stated we will remain ready and opportunistic and evaluate attractive windows in the capital markets.

Todd Koetje: Turning to our investment partnerships, we posted updated information about our unconsolidated investments on our investor relations website. For the fourth quarter of 2024, the annualized adjusted EBITDA of select companies was approximately $682 million, up 10% from the prior year. These companies also grew broadband subscribers by 11% and added over 240,000 new fiber passings during the year. That momentum carried into the first quarter, with residential and business data customers increasing by approximately 16,000, or 1.8% sequentially.

Todd: Turning to our investment partnerships, we posted updated information about our unconsolidated investments on our Investor Relations website.

Todd: For the fourth quarter of 2024, the annualized adjusted EBITDA of select companies was approximately $682 million up 10% from the prior year. These.

Todd: These companies also grew broadband subscribers by 11% and added over 240000, new fiber passing during the year.

Todd: That momentum carried into the first quarter with residential and business data customers, increasing by approximately 16000 or one 8% sequentially.

Todd Koetje: These figures exclude Metronet, where our ownership stake is. The pending monetization of our Ziply and Metronet investments in the coming months, along with our monetization of CTI Towers in the first quarter, are expected to generate well over $100 million of combined after-tax proceeds, with each investment providing a solid return. We believe these outcomes, both the strong operating execution and the successful monetization of our investments, reflect the strength of the businesses we partnered with and the opportunities we continue to see ahead.

Todd: These figures exclude metronet, where our ownership stake is smaller.

Todd: The pending monetization of our ZIP Lee and Metro net investments in the coming months, along with our monetization of Cta towers in the first quarter are expected to generate well over $100 million of combined after tax proceeds with each investment providing a solid return.

Todd: We believe these outcomes both the strong operating execution and the successful monetization of our investments reflect the strength of the businesses, we partnered with and the opportunities we continue to see ahead.

Todd Koetje: Before we open it up for questions, I want to reiterate our confidence in the strategy we're executing to drive long-term, sustainable broadband revenue growth and durable cash flow. As we allow the appropriate amount of time for our new and ongoing investments in people, operational platforms, and go-to-market playbooks to come together, we believe we have the foundational elements in place to return to delivering the differentiated results that have defined Cable ONE's reputation throughout our history.

Todd: Before we open it up for questions I want to reiterate our confidence in the strategy, we're executing to drive long term sustainable broadband revenue growth and durable cash flow growth.

Todd: As we allow the appropriate amount of time for our new and ongoing investments in people operational platforms and go to market Playbooks to come together. We believe we have the foundational elements in place to return to delivering the differentiated results that have defined cable one's reputation throughout our history.

Rebecca: With that, we are now ready for questions. At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster.

Todd: With that we are now ready for questions.

Todd: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.

Todd: Yeah.

Frank Louthan: Your first question comes from the line of Frank Louthan with Raymond James. Great, thank you. Um, so you have fallen into the trap that I've seen other companies that I've covered fall fall into where bankers or someone have talked you into eliminating the dividend entirely.

Speaker Change: Your first question comes from the line of Frank <unk> with Raymond James.

Speaker Change: Alright, thank you.

Speaker Change: So you have fallen into the trap that I've seen other companies that I've covered fall fall into where.

Speaker Change: Bankers or someone who will talk you into eliminating the dividend entirely.

Todd Koetje: So, I would be interested to know what led you to that decision, and specifically, are there any kind of going concern issues or debt covenants or some other issue that we're aware of in the business environment that would require you to cut the dividend, and does this have anything to do with the short-term debt jumping out $575 million in the quarter?

Speaker Change: So I would be interested to know what led you to that decision and specifically are there any kind of going concern issues or debt covenants or some other issue that were aware of and the business environment that would require you to cut the dividend and does this have anything to do with the short term that jumping up $575 million in it.

Speaker Change: Quarter.

Todd Koetje: Hey, Frank, it's Todd. Appreciate the question. I'll reassure you and our stakeholder audience, it has nothing to do with any going concern or debt covenant concerns. The capital allocation strategies that we've been extensively revisiting, not just in the quarter, but active discussions, active listening to many of our stakeholders was what drove us to that decision. This allows us, as we said in our prepared remarks, to accelerate our debt repayment. In addition to what we generate in leverage-free cash flow in excess of $300 million annually, in the next, really, two years in advance of the potential MBI transaction, another $120 million of that will be allocated towards debt repayment, therefore reiterating our view and our comfort that we'll be below four times, as we've stated previously.

Hey, Frank it's Todd.

Speaker Change: I appreciate the question I will reassure you Ann.

Speaker Change: Our stakeholder audience has nothing to do with any going concern or debt covenant concerns.

Speaker Change: The capital allocation strategy that we've been extensively revisiting not just in the quarter, but.

Speaker Change: Active discussions active listening.

Speaker Change: Many of our stakeholders.

Speaker Change: What.

Speaker Change: Drove us to that decision.

Speaker Change: It allows us as we said in our prepared remarks to accelerate our debt repayment.

Speaker Change: <unk> to what we generated leveraged free cash flow in excess of $300 million annually.

Speaker Change: And in the next really two years in advance of the potential MPI transaction, another $120 million of that will be allocated towards debt repayment. Therefore, reiterating our view and our comfort that will be below four times as we've said as we've stated previously.

Todd Koetje: Was eliminating the dividend part of the way you were confident you were going to get there before? Or is this new?

Speaker Change: Eliminating the dividend part of the way Youre confident youre going to get there before or is this new and then as a follow up you mentioned about getting back to broadband subscriber growth can you articulate when you think youll be able to cross that line.

Todd Koetje: And then as a follow up, you mentioned about getting back to broadband subscriber growth. Can you articulate when you think you'll be able to cross that line? I'll address the first, then I'll let Julie jump in, but no, I said last quarter that we are confident in that less than four times without, you know, a decision being effectively made on that dividend suspension. So that would not be a corollary to that. It just further reemphasizes that.

Speaker Change: Now I'll address the first and then I'll, let Julie jump in but I have said last quarter that we are confident in that less than four times without a decision being effectively made on that dividend suspension, so that would not be a corollary to that.

Speaker Change: It just further re emphasizes that ethylene.

Todd Koetje: And on broadband growth, whether we segment out, are we talking about broadband revenue or broadband subscriber growth or customer growth? Subscriber growth. We believe, yeah, we believe we can do both, quite honestly, and we've been working on the setup of that for some time. And it started with a team that was professional and experienced in a more competitive environment, as well as the platforms that would allow us to track and be much more measured and strategic about the actions that we took. And so. For the first quarter to start out what I would call flow-ish, it's not a surprise to me, because all those things were still being put into place.

Speaker Change: And on <unk>.

Speaker Change: Rod band growth.

Speaker Change: Whether we segment out or are we talking about broadband revenue our broadband.

Speaker Change: Subscriber growth or customer growth subscriber growth we believe.

Speaker Change: We believe we can do both quite honestly and we've been working on the setup of that for some time and.

Speaker Change: It started with a team that was.

Speaker Change: Professional experienced any more competitive environment as well as the platforms that would allow us to track and be much more.

Speaker Change: Measured and strategic about the.

Speaker Change: Actions that we took and so for.

Speaker Change: For the first quarter to start out what I would call slow ish is that a surprise to me because all of those things are still being put into place.

Todd Koetje: And even with that, we did see, you know, our biggest focus area has been Connex, because our churn is just so amazingly low. So working on Connex, and we did see Connex improve month over month and still feel good about that trajectory. And that is not the way that it occurred last year. So that is something that we're bending the curve on. And that is before we put our comprehensive plan into place. So, you know, I'm not going to pick a month or a week where I'm going to say, here's where you're going to see broadband customer growth, but I will say in 25 that that is what I believe we're going to deliver.

Speaker Change: Even with that we did see our biggest.

Speaker Change: Focus area has been connects because our churn is just so amazingly low so working on connects and we did see connects improve month over month.

Speaker Change: And still feel good about about that trajectory and that is not the way that it occurred last year. So that is something that we are bending the curve on and that is before we put our comprehensive plan into place. So.

Speaker Change: I'm not going to pick a month or a week quarter I'm going to say, here's where you're going to see broadband customer growth, but I will say in 25, but that is why I believe we're going to deliver and we absolutely will deliver revenue growth broadband revenue growth and 25.

Todd Koetje: And we absolutely will deliver revenue growth, broadband revenue growth in 25. There's nothing to talk about why I think that's the case. Sure, glad to hear that.

Speaker Change: Can you talk about why why why I think that's the case, but.

Speaker Change: Sure.

Glad to hear that.

Sebastiano Petti: Your next question comes from the line of Sebastiano Petti with J.P. Morgan. Hi, thank you for taking the question.

Speaker Change: Your next question comes from the line of Sebastiana Patchy with J P. Morgan.

Sebastiana Patchy: Hi, Thank you for taking the question.

Sebastiano Petti: Could you unpack what the one-time unusual turn event was in the quarter? And just kind of one quick other follow up there, but as we looked out to the fourth quarter as well, right, there were some one-off activities or one-off events. looked upon as, you know, quote unquote, run rate for the 2025 But, you know, here we are.

Sebastiana Patchy: Just could you unpack what the one time unusual churn event was in the quarter.

Sebastiana Patchy: Sure.

Speaker Change: Kind of.

Speaker Change: Just a quick one quick on a follow up there, but as we look out to the fourth quarter as well right. There were some one off activities are one off events.

Speaker Change: We're not necessarily exposed to be <unk>.

Speaker Change: Looked upon as quota until run rate for the 2025.

Speaker Change: But here we are in so just what underlies your confidence just kind of piggybacking on <unk> question, what underlies the confidence in returning to broadband subs broadband revenue growth.

Sebastiano Petti: And so just what underlies your confidence, just kind of piggybacking on Frank's question, what underlies the confidence in returning to broadband revenue growth? For the year, if you think about the starting point with subscriber, you know, the subscriber decline, as well as the ARPU decline in the quarter. Just if you could unpack the confidence there, particularly given the competitive backdrop. Yeah, yeah, yeah. So the one time events, the unique headwinds that we referred to at year end were primarily around ACP. The Sunset of ACP. We did also have a change in key team members that we referenced as well.

Speaker Change: The year do you think about the starting point with subscriber the subscriber decline as well as the <unk> decline in the quarter.

Speaker Change: Just if you could unpack the confidence there, particularly given the competitive backdrop.

Speaker Change: Yeah, Yeah yeah.

Speaker Change: So the onetime events the unique headwinds that we referred to at year end were primarily around ACP.

Speaker Change: The sunset of ACP.

We did also have a change in key team members that we referenced as well so that would be the events from the fourth quarter of 2004.

Julia Laulis: So that would be the events from the fourth quarter of twenty four. In the first quarter of twenty five, it's not one thing. It's a bunch of little things that that if we took those out of the equation, our turn is low regardless. But if we took those out, it would be historically low. And that was some heightened churn associated with our billing migration activities. the shutdown of unprofitable fixed wireless towers and the customers that were on them that we gained from an earlier acquisition and some weather related events, tornadoes and storms. So I would call those unusual and generally non-reoccurring types of events.

Speaker Change: In the first quarter of 'twenty five it's not one thing, it's a bunch of little things that that.

Speaker Change: If we took those out of the equation.

Speaker Change: Our churn is low regardless, but we took those out it would be historically low and that with some heightened churn associated with our billing migration activities.

Speaker Change: The shutdown.

Speaker Change: Unprofitable fixed wireless towers and the customers that are on them that we gained from an earlier acquisition.

Speaker Change: And some weather weather related events tornadoes and storms.

Speaker Change: So I would call those unusual and generally non reoccurring type of events and again, our churn is incredibly low.

Julia Laulis: And again, our churn is incredibly low.

Speaker Change: Historically low if we remove those items.

Speaker Change: And that with us being in the current competitive environment that you referenced.

Julia Laulis: https://youtu.beo.com You know, our team is just so fanatical about measuring and getting the data from our experiments so that we can make smart decisions. And just just 1 example related to CHERN, we've been tracking acquisition cohorts, connect cohorts from the 1st quarter specifically when we look at it over all time, but since we're measuring 1st quarter since 2021. To current and each year, our attention has gone up and we are now 300 BIPs higher than we were in 21. So that's just an indication of the work that's done around churn and how these small things.

Speaker Change: Our team is just so fanatical about measuring and getting the data.

Speaker Change: From our experiments so that we can make smart decisions.

Speaker Change: And just just one example related to churn we've been tracking acquisition cohorts mm connect cohorts from the first quarter, specifically when we look at it over all time, but since we're measuring first quarter since 2021 to current and each year. Our retention has gone up and we are now.

Speaker Change: 300, bips higher than we were in 'twenty one.

Speaker Change: So that's just an indication of the work that's done around churn and how these.

Speaker Change: All things.

Julia Laulis: Unusual things occurred in the first quarter. Let's see, what else did you ask? Oh, confidence. So, again.

Speaker Change: Unusual things occurred in the first quarter.

Speaker Change: Let's see what else did you ask oh confidence so again.

Julia Laulis: The way I actually say it to the team is, hey, we haven't even shot our big cannons yet, like, we're, it's basically water guns and we're getting ready to bring out the cannons because we wanted to put together a plan that was incredibly disciplined and strategic and comprehensive, not just bits and parts and tactics. And so we've been spending a lot of time, immense amount of work going on by the teams. You know, what advertising messages will resonate? What does the research say about how our customers want to be approached? How do we interrupt ShareFlow to our channels?

Speaker Change: The way I actually say it to the team is hey, we havent, even shot our big canons yet Mike.

Speaker Change: It's basically water guns, and we're getting ready to bring out the candidates because we wanted to put together a plan that was incredibly disciplined and strategic and comprehensive not just bits and parts and tactics.

Speaker Change: And so we've been spending a lot of time immense amount of work going on by the teams.

Speaker Change: But advertising messages will resonate what does the research say about how our customers want to be approached.

Speaker Change: Can we interrupt share flow to our channels, because we know when customers come to us they stay with us.

Julia Laulis: Because we know when customers come to us, they stay with us. So, again, given that Connect and Nets improved month over month for the entire quarter, and knowing that, you know, the plan for the future, starting imminently, is to roll out products that we've trialed and we have data so now we can forecast what to expect from those products. Things like FlexConnect which will go head-to-head against cell phone internet and there's just so much data that we have learned from our trials. What people appreciate about it, the demos that are being attracted by it, the data usage of that group, it may even lead to other use cases like wireless substitution, Winback for example, or products like Lyft which are completely incremental to us where we're going after the value by need customers.

Speaker Change: So again given that connects and net.

Speaker Change: Improved month over month for the entire quarter.

Speaker Change: And knowing that the plan for the for the future.

Speaker Change: <unk> imminently is too.

Speaker Change: Our products that we've trial that we have data. So now we can forecast what to expect from those.

Speaker Change: Products things like Flex connect which will go head to head against cell phone and Internet.

Speaker Change: And there is just so much data that we have learned from our trials.

Speaker Change: What people appreciate about it the demos that are being attracted by it the data usage of that group.

Speaker Change: It may even lead to other use cases.

Speaker Change: Like wireless substitution win back for example, or products like lift which are completely incremental to us.

Speaker Change: Where we're going after the value by need customers. So we are not only helping out our neighbors, but we're getting incremental revenue and again by trialing. It.

Julia Laulis: So we're not only helping out our neighbors but we're getting incremental revenue and again by trialing it we have the confidence to understand that it won't cannibalize current customers. Campaigns, for example, we did a campaign, an acquisition campaign late in 24, and it resulted in a 13% lift, and that's fantastic, but it had a discount. So we've been tracking it over time. and we're retaining in the mid-90s, and that is post-discount roll-off, so that is a super successful campaign. Now that we know that, we know that we're not, you know, we're threading the needle between Lyft and ARPU and customer satisfaction, we can replicate that over and over again.

Speaker Change: Have the confidence to understand that it won't cannibalize current customers.

Speaker Change: <unk>.

Speaker Change: Tracking.

Speaker Change: Campaigns for example, we did a campaign and acquisition campaign late in 'twenty, four and it resulted in a 13% lift and that.

Speaker Change: Fantastic, but it had a discount so we've been tracking it over time.

Speaker Change: And we are retaining in the mid nineties and that is post discounts roll off so that is a super successful campaign now that we know that when we know that we're not we're threading the needle between lift in <unk> in customer satisfaction, we can replicate that over and over again.

Julia Laulis: We are getting so much more sophisticated now that we have these best-in-class platforms in place, and so we are revamping, for example, our new build process, and so far that's yielding about two percent higher penetration within two months of completion at a lower cost of capital. I think about ancillary products that customers are approving by their purchasing decisions that they want and need these things, and there is price elasticity there because of that need, because of that value, so things like Secure Plus or Ultimate Wi-Fi, and those are just things that we're doing now, not things that are on the drawing board.

Speaker Change: Ken.

Speaker Change: We are getting so much more sophisticated now that we have these best in class platforms in place and so we are revamping for example, our newbuild process and so.

Speaker Change: So far that's yielding about 2% higher penetration within two months of completion at a lower cost of capital.

Speaker Change: I think about ancillary products that customers are proving by their purchasing decisions that they want and need these things and there is price elasticity, there because of that need because of that value. So things like secure plus our ultimate Wi Fi.

Sebastiana Patchy: And those are just things that we're doing now not things that are on the drawing board. Those are just some of the reasons why I have confidence I have confidence sebastiano, because I know, what we're getting ready to do.

Julia Laulis: Those are just some of the reasons why I have confidence. I have confidence, Sebastiano, because I know what we're getting ready to do.

Speaker Change: Thank you.

Brandon Nispel: Your last question comes from the line of Brandon Nispel with KeyBank Capital Markets. Hey guys, thanks for taking the questions.

Speaker Change: Your last question comes from the line of Brandon <unk> with Keybanc capital markets.

Brandon <unk>: Hey, guys. Thanks for taking the questions I was hoping maybe you could help us in some of your trials with black connected lift help us understand what intake our pool looks like for those products.

Brandon Nispel: I was hoping maybe you could help us in some of your trials with Flex, Connect, and Lift, help us understand what intake ARPU looks like for those products. And then hoping you could provide an update on what percentage of your footprint is now overbuilt with fiber and the percentage of your footprint you think you're competing with fixed wireless in. Thanks.

Brandon <unk>: And then hoping you could provide an update on what percentage of your footprint is now overbuilt with fiber and the percentage of your footprint, you think youre competing with fixed wireless.

Brandon <unk>: Thanks.

Julia Laulis: So FlexConnect is really pretty interesting because, again, it's going up against cell phone, internet, we call it a value by choice. In other words, people are choosing to have a value type product, but they're not in the same demo as the Lyft folks who have a strong need because of their income levels. FlexConnect. offers customers really a super easy way to on board and service themselves. very similar to what cell phone internet is like. However, it has a choice of speeds. Now, I can't necessarily tell you what the ARPU is in that group because the speed and price, the speeds and prices that we're going to aggressively market are changing in our mass rollout versus our trial because we learned some things in the trial.

Brandon <unk>: So flex Kinect.

Brandon <unk>: Is <unk>.

Brandon <unk>: Really pretty interesting because again, it's going up against cell phone Internet, we call. It a value by choice in other words people are choosing to have a value type product, but they're not in the same demo as the lift folks who have a strong need because of their <unk>.

Brandon <unk>: Income levels Flex <unk>.

Brandon <unk>: <unk> customers.

Brandon <unk>: Really.

Brandon <unk>: Super easy way to onboard and service themselves.

Brandon <unk>: Very similar to what cell phone Internet is like however, it has a.

Brandon <unk>: Choice of speeds now I can't necessarily tell you what the <unk> is in that group because.

Brandon <unk>: The speed and price at the speeds and prices that we're going to aggressively market our.

Brandon <unk>: Changing in our mass rollout versus our trial, because we learned some things in the trial, but there are two levels, a $45 level and at $75 level and I can tell you that.

Julia Laulis: But there are two levels, a $45 level and a $75 level. And I can tell you that a portion, not half, but a portion of the customers are electing to get the higher speed tier. And again, what we're learning about the people that are choosing that and their happiness with their satisfaction with the product. And their data usage is really interesting.

Brandon <unk>: A portion.

Brandon <unk>: Not not half, but a portion of the customers are electing to get the higher speed tier.

Brandon <unk>:

Brandon <unk>: And again, what we're learning about the people that are choosing that and their happiness with their satisfaction with the product.

Brandon <unk>: And our data usage is really interesting and and wait for the advertising I'll just cheesy with that I think it's pretty punchy, let me just put it that way.

Julia Laulis: And wait for the advertising. I'll just tease you with that. I think it's pretty punchy. Let me just put it that way.

Brandon <unk>: Lift likewise.

Julia Laulis: Likewise, is its trial is nearing its end and we're getting ready to market that as well. And there's a very discreet TAM for Lyft, right? So these are folks that have to be eligible in order to get this product. And so we'll be marketing very discreetly to that group. It will represent all incremental revenue and actually find a place for folks who are most likely ACP customers in the past to find their home back with Sparklight again.

Brandon <unk>: Is.

Brandon <unk>: It's trial is nearing its end and we're getting ready to market that as well and there is a very discrete tam for lift right. So these are folks that have to be eligible in order to get this product.

Brandon <unk>: And so we will be marketing very discretely to that group it will represent all incremental revenue.

Brandon <unk>: And actually find a place for folks who are most likely.

Brandon <unk>: Customers in the past to find their home back with FERC late again.

Julia Laulis: footprint for fiber about half and half? Yeah, well it's a little over 50%. Brandon, very consistent with what we talked about last quarter, hasn't moved meaningfully. And then with a broadband offering from a mobile operator, that's in nearly all of our markets as we also said last quarter. That hasn't changed meaningfully either and really can't because it's pretty widely available. If anything, it's on track. Yeah, if anything from a spectrum capacity constraint, it will contract over time. But right now that is And that's, as Julie said, the Predominant Connect Challenge, which is why we've been piloting and now executing on some of these new initiatives that will go head-to-head.

Brandon <unk>: Footprints for fiber about half and half yes. It is.

Brandon <unk>: Little over.

Brandon <unk>: 50%, Brandon very consistent with what we talked about last quarter Hasnt moved meaningfully and then with.

Brandon <unk>: Our broadband offering from a mobile.

Brandon <unk>: Mobile operator.

Brandon <unk>: And nearly all of our markets as we also said last quarter.

Brandon <unk>: Hasnt changed meaningfully either really cant because its pretty widely available.

Brandon <unk>: Okay anything it contracts.

Speaker Change: Yes, if anything from a spectrum capacity constrained it will contract over time, but right now that is.

Brandon <unk>: And Thats as Julie said.

Okay.

Speaker Change: Correct.

Speaker Change: <unk>.

Speaker Change: Which is why we've been piloting.

Speaker Change: Now executing on some of these new initiatives that will go head to head.

Brandon Nispel: Thanks for the call.

Speaker Change: Thanks for all the color.

Julia Laulis: I will now turn the call back over to Julie for closing remarks.

Julie Lewis: I will now turn the call back over to Julie for closing remarks.

Julia Laulis: Thank you, Rebecca. As we wrap up today's call, I want to thank our associates again for their continuing hard work and dedication to our customers and one another. This has been a challenging time for our company and our industry, but our people continue to believe in our mission to connect people to what matters most. Indeed, high speed data remains one of the most important products in rural America, where it is the lifeline for people to work, learn, and receive medical care. While today's discussion centered on topics that our shareholders and investors frequently ask about, it's important to remember that it's our associates who provide an invaluable service to our customers.

Julie Lewis: Thank you Rebecca as we wrap up today's call I want to thank our associates again for their continuing hard work and dedication to our customers and one another.

Speaker Change: In a challenging time for our company and our industry, but our people continue to believe in our mission to connect people to what matters. Most indeed high speed data remains one of the most important products in Rural America, where it is a lifeline for people to work learn and received medical care, while today's discussion centered on top.

Speaker Change: Ask that our shareholders and investors frequently ask about it is important to remember that it's our associates, who provide an invaluable service to our customers so to each of our associates. Please accept my thanks for all that you do.

Julia Laulis: So to each of our associates, please accept my thanks for all that you do.

Julia Laulis: Thanks, everyone, and speak to you again next quarter.

Speaker Change: Thanks, everyone and speak to you again next quarter.

Rebecca: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

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