Cable One, Inc. · NYSE:CABO
Cable One — Merger or Acquisition (April 2017)
10 slides from Cable One's merger presentation, Apr 3, 2017
Slide 1: Acquisition of NewWave
Acquisition of NewWave CABLEQnE’ April 2017
Slide 2: Disclaimer
Disclaimer ‘This presentation has been prepared by Cable Ono, nc. (Cable ONE). The information contained in this presentation is fo informational purposes ony. The information Contained ints presentation snot nvestnentor nancial product advice and isnt itended tobe used as the basis for making an iv
Slide 3: Use of Non-GAAP Financial Metrics
Use of Non-GAAP Financial Metrics Cable ONE uses certain measures that are nt defined by generally accepted accountng princiles i the United States (GAAP) to evaluate various aspects of ts and NewWave Communications’ (NewWave’) businesses. Adjusted EBITDA, Adjusted EBITOA Margin (labeled “Adj EBITOA
Slide 4: NewWave geographic coverage and key metrics
NewWave geographic coverage and key metrics > Nineteenth largest cable operator in the United States > Provides HSD, video and voice services to residential and commercial customers in non-urban markets of IL, TX, IN, LA, MO, MS and AR Key metrics (4Q16A) M Video Penetration HSD Penet asse n Voice P
Slide 5: NewWave has grown significantly over the last several years
NewWave has grown significantly over the last several years, driven by residential HSD and business revenues, with headroom for additional growth Revenue ($ million) Residential HSD revenue ($ million) CAGR: 6% CAGR: 16% $182 $55 $162 $170 _ EL 20148 20158 2016A 20148 20158 Business services revenue
Slide 6: Historical Adj. EBITDA and Capex
NewWave historical Adj. EBITDA and Capex ‘Adjusted EBITDA (S million) Capex ($ million) Adj mln) ‘$58 $58 $49 7 a $4 $34 $3 ($14) 20148, 20150 2016 20140 20154 2016A 20140 2015 2016A ‘sp EBITOR 20% Doma Garex 56% 2% 108% Converion IE % 0% ‘arn 00) Seales AESONE'| 5
Slide 7: Appendix
Appendix > Reconciliation of Net Income to Adjusted EBITDA > Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA less Capital Expenditures CABLEONE| 6
Slide 8: Reconciliation of Net Income to Adjusted EBITDA
NewWave Reconciliation of Net Income to Adjusted EBITDA 2014 2015 2016 Net income (s19) (S18) (s14) Pius: Interest expense, net a a 2 Provision forincome taxes - - - Depreciation and amortization 39 4% 47 ‘Stock-based compensation 1 4 1 Other expense 4 4 4 Acquistion elated costs, 2 1 2 Gain on sale
Slide 9: Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA less Capital Expenditures
NewWave Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA less Capital Expenditures 2014 2015 2016 Net cash provided by operating activities, $20 $32 $38 ‘Amortization of financing costs @ @ ) Wite off of financing costs 0 ‘Changes in operating assets and libilties 2 OF
Slide 10: Cable ONE
CABLEQniE’