Cable One Inc

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023 and the related “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” both of which are contained in our 2023 Form 10-K. Our results of operations and financial condition discussed herein may not be indicative of our future results and trends.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2023 and the related “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” both of which are contained in our 2023 Form 10-K/A. Our results of operations and financial condition discussed herein may not be indicative of our future results and trends.

Previous wording

We are a leading broadband communications provider committed to connecting customers and communities to what matters most. We strive to deliver an effortless experience by offering solutions that make our customers’ lives easier, and by relating to them personally as our neighbors and local business partners. Powered by our fiber-rich infrastructure, the Cable One family of brands provides residential customers with a wide array of connectivity and entertainment services, including Gigabit speeds, advanced Wi-Fi and video. For businesses ranging from small and mid-market up to enterprise, wholesale and carrier, we offer scalable, cost-effective solutions that enable businesses of all sizes to grow, compete and succeed. We believe the services we provide are critical to the development of new businesses and drive economic growth in the non-metropolitan, secondary and tertiary markets that we serve in 24 Western, Midwestern and Southern states. As of June 30, 2024, approximately 74% of our customers were located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas. We provided services to approximately 1.1 million residential and business customers out of approximately 2.8 million homes passed as of June 30, 2024. Of these customers, approximately 1,063,000 subscribed to data services, 126,000 subscribed to video services and 112,000 subscribed to voice services.

Current wording

We are a leading broadband communications provider delivering exceptional service and enabling our customers to thrive and stay connected to what matters most. We strive to deliver an effortless experience by offering solutions that make our customers’ lives easier, and by relating to them personally as our neighbors and local business partners. Through Sparklight® and the associated Cable One family of brands, we are transforming the future of connectivity with a commitment to innovation, reliability and customer experience. Our robust infrastructure and cutting-edge technology keep our customers connected and help drive progress in education, business and everyday life. We believe the services we provide are critical to the development of new businesses and drive economic growth in the non-metropolitan, secondary and tertiary markets that we serve in 24 Western, Midwestern and Southern states. As of September 30, 2024, approximately 74% of our customers were located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas. We provided services to approximately 1.1 million residential and business customers out of approximately 2.8 million homes passed as of September 30, 2024. Of these customers, approximately 1,059,000 subscribed to data services, 119,000 subscribed to video services and 109,000 subscribed to voice services.

Previous wording

We generate substantially all of our revenues through three primary product lines. Ranked by share of our total revenues through the first six months of 2024, they are residential data (58.4%), residential video (14.7%) and business data (14.2%). The profit margins, growth rates and/or capital intensity of these three primary product lines vary significantly due to competition, product maturity and relative costs.

Current wording

We generate substantially all of our revenues through three primary product lines. Ranked by share of our total revenues through the first nine months of 2024, they are residential data (58.4%), residential video (14.4%) and business data (14.3%). The profit margins, growth rates and/or capital intensity of these three primary product lines vary significantly due to competition, product maturity and relative costs.

Previous wording

In 2021, we participated in the FCC’s Emergency Broadband Benefit (“EBB”) program, which provided qualifying low-income consumers a discount on certain of our broadband internet access services for which we received reimbursement from the FCC. On December 31, 2021, the EBB program transitioned to the Affordable Connectivity Program (“ACP”) as required by the Infrastructure Act. The ACP allowed us to seek reimbursement for certain broadband internet access service discounts provided to qualifying low-income consumers. The funding for the ACP authorized under the Infrastructure Act has been depleted and the program ended in the second quarter of 2024. While only a relatively small percentage of our customers received ACP services, the termination of the program could affect the profitability of our residential data services and will result in the loss of residential data customers. We lost approximately 4,000 residential data customers who received ACP services during the second quarter of 2024.

Current wording

In 2021, we participated in the FCC’s Emergency Broadband Benefit (“EBB”) program, which provided qualifying low-income consumers a discount on certain of our broadband internet access services for which we received reimbursement from the FCC. On December 31, 2021, the EBB program transitioned to the Affordable Connectivity Program (“ACP”) as required by the Infrastructure Investment and Jobs Act (the "Infrastructure Act"). The ACP allowed us to seek reimbursement for certain broadband internet access service discounts provided to qualifying low-income consumers. The funding for the ACP authorized under the Infrastructure Act has been depleted and the program ended in the second quarter of 2024. While only a relatively small percentage of our customers received ACP services, we lost approximately 9,800 residential data customers who received ACP services during thenine months ended September 30, 2024, including approximately 5,300 during the three months ended September 30, 2024.

Previous wording

For additional information, see “Risk Factors — Risks Relating to Our Business — Changes in or elimination of the FCC’s Affordable Connectivity Program could affect the profitability of our data services” in Part I, Item 1A of the 2023 Form 10-K.

Current wording

For additional information, see “Risk Factors — Risks Relating to Our Business — Changes in or elimination of the FCC’s Affordable Connectivity Program could affect the profitability of our data services” in Part I, Item 1A of the 2023 Form 10-K/A.

Previous wording

Key Performance Measures Summary

Current wording

Key Performance Measures Summary (As Restated)

Previous wording

Residential data service revenues decreased $16.4 million, or 6.7%, due primarily to a 6.9% decrease in ARPU as a result of the implementation of targeted pricing and product offerings in certain markets, including amongst value-conscious customers.

Current wording

Residential data service revenues decreased $17.1 million, or 6.9%, due primarily to a 7.1% decrease in ARPU as a result of the implementation of targeted pricing and product offerings in certain markets, including amongst value-conscious customers.

Previous wording

Residential video service revenues decreased $18.9 million, or 13.8%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted during the first quarter of 2024.

Current wording

Residential video service revenues decreased $8.6 million, or 13.9%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted earlier in 2024.

Previous wording

Residential voice service revenues decreased $1.3 million, or 13.7%, due primarily to a decrease in residential voice subscribers.

Current wording

Residential voice service revenues decreased $1.3 million, or 14.5%, due primarily to a decrease in residential voice subscribers.

Previous wording

Business data revenues increased $0.9 million, or 1.6%, due primarily to an increase in business data subscribers.

Current wording

Business data revenues increased $1.6 million, or 2.9%, due primarily to an increase in business data subscribers.

Previous wording

Business other revenues decreased $2.4 million, or 11.2%, due primarily to a decrease in business video subscribers.

Current wording

Business other revenues decreased $1.9 million, or 9.8%, due primarily to a decrease in business video subscribers.

Previous wording

Operating expenses (excluding depreciation and amortization) were $212.4 million for the six months ended June 30, 2024 and decreased $12.6 million, or 5.6%, compared to the six months ended June 30, 2023. The decrease in operating expenses was primarily attributable to $17.7 million of lower programming as a result of video customer losses and a $2.1 million decrease in labor and other compensation-related costs due in part to certain organizational changes implemented during the second quarter of 2024. These decreases were partially offset by higher network backbone costs of $1.8 million, rent expense of $1.7 million, property and other taxes of $1.5 million and software costs of $1.3 million. Operating expenses as a percentage of revenues were 26.6% for both the six months ended June 30, 2024 and 2023.

Current wording

Operating expenses (excluding depreciation and amortization) were $104.6 million for the three months ended September 30, 2024 and decreased $5.1 million, or 4.6%, compared to the three months ended September 30, 2023. The decrease in operating expenses was primarily attributable to $7.6 million of lower programming and franchise costs as a result of video customer losses and a decrease in labor and other compensation-related costs, partially offset by higher property and other taxes, software costs, utility expenses and professional services fees. Operating expenses as a percentage of revenues were 26.6% and 26.1% for the three months ended September 30, 2024 and 2023, respectively.

Previous wording

Selling, general and administrative expenses were $90.8 million for the three months ended June 30, 2024 and increased $4.6 million, or 5.3%, compared to the three months ended June 30, 2023. The increase in selling, general and administrative expenses was primarily attributable to $5.5 million of severance costs due to recent organizational changes and $1.2 million of system conversion costs that did not occur in the prior year, partially offset by lower professional services costs and rent expense. Selling, general and administrative expenses as a percentage of revenues were 23.0% and 20.3% for the three months ended June 30, 2024 and 2023, respectively.

Current wording

Selling, general and administrative expenses were $88.4 million for the three months ended September 30, 2024 and decreased $4.3 million, or 4.6%, compared to the three months ended September 30, 2023. The decrease in selling, general and administrative expenses was primarily attributable to $4.0 million of lower labor and other compensation-related costs due in part to the organizational changes implemented during the second quarter of 2024 and reductions in marketing costs, property and other taxes and health insurance costs, partially offset by an increase in system conversion costs and rebranding costs that did not occur in the prior year period. Selling, general and administrative expenses as a percentage of revenues were 22.5% and 22.1% for the three months ended September 30, 2024 and 2023, respectively.

Previous wording

Depreciation and amortization expense was $85.3 million for the three months ended June 30, 2024 and decreased $1.9 million, or 2.2%, compared to the three months ended June 30, 2023. Depreciation and amortization expense as a percentage of revenues was 21.6% and 20.6% for the three months ended June 30, 2024 and 2023, respectively.

Current wording

Depreciation and amortization expense was $85.2 million for the three months ended September 30, 2024 and increased $2.2 million, or 2.7%, compared to the three months ended September 30, 2023. Depreciation and amortization expense as a percentage of revenues was 21.6% and 19.7% for the three months ended September 30, 2024 and 2023, respectively.

Previous wording

Interest expense, net, was $35.0 million for the three months ended June 30, 2024 and decreased $3.8 million, or 9.7%, compared to the three months ended June 30, 2023. The decrease in net interest expense was due primarily to lower outstanding debt balances and higher interest and investment income.

Current wording

Interest expense, net, was $34.2 million for the three months ended September 30, 2024 and decreased $4.3 million, or 11.3%, compared to the three months ended September 30, 2023. The decrease in net interest expense was due primarily to lower outstanding debt balances during the three months ended September 30, 2024 compared to the prior year period.

Previous wording

Other expense, net, was $0.6 million for the three months ended June 30, 2024 and consisted primarily of an $8.4 million non-cash loss on fair value adjustment associated with the MBI Net Option, partially offset by a $7.7 million gain related to the C-band spectrum relocation funding received from the federal government. Other expense, net, was $6.6 million for the three months ended June 30, 2023 and consisted primarily of a $6.8 million non-cash loss on fair value adjustment associated with the MBI Net Option.

Current wording

Other income, net, was $5.3 million for the three months ended September 30, 2024 and consisted primarily of a $6.9 million non-cash gain associated with our Nextlink equity investment, partially offset by a $1.5 million non-cash loss on fair value adjustment associated with the MBI Net Option. Other expense, net, was $25.4 million for the three months ended September 30, 2023 and consisted primarily of a $23.9 million non-cash loss on fair value adjustment associated with the MBI Net Option and a $1.6 million net loss on the sale of equity investments.

Previous wording

Income tax provision was $38.9 million and $43.2 million for the six months ended June 30, 2024 and 2023, respectively, and our effective tax rate was 25.7% and 23.3% for the six months ended June 30, 2024 and 2023, respectively. The increase in the effective tax rate was due primarily to a decrease in income tax benefits of $3.2 million resulting from lower equity method investment net losses in the current period.

Current wording

Income tax provision was $15.9 million and $17.3 million for the three months ended September 30, 2024 and 2023, respectively, and our effective tax rate was 19.5% and 25.2% for the three months ended September 30, 2024 and 2023, respectively. The decrease in the effective tax rate was due primarily to an increase in income tax benefits of $5.4 million resulting from a change in valuation allowance related to the fair value adjustment of the MBI Net Option in the current period.

Previous wording

Equity Method Investment Income (Loss), Net

Current wording

Equity Method Investment Income (Loss), Net (As Restated)

Previous wording

Equity method investment loss was $9.1 million for the three months ended June 30, 2024 and consisted of our $7.9 million and $1.3 million pro rata share of net losses from our Clearwave Fiber and MBI investments, respectively. Equity method investment loss, net, was $13.5 million for the three months ended June 30, 2023 and consisted primarily of our $13.0 million and $0.8 million pro rata share of net losses from our Clearwave Fiber and MBI investments, respectively.

Current wording

Equity method investment loss, net, was $21.3 million for the three months ended September 30, 2024 and consisted primarily of our $20.1 million and $1.2 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively. Equity method investment loss, net, was $21.1 million for the three months ended September 30, 2023 and consisted primarily of our $20.7 million and $0.4 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively.

Previous wording

Unrealized loss on cash flow hedges and other, net of tax was $0.7 million for the three months ended June 30, 2024 compared to a $21.7 million unrealized gain for the three months ended June 30, 2023. The $22.4 million change was due to a decline in forward interest rates during the three months ended June 30, 2024 compared to an increase in the prior year period.

Current wording

Unrealized loss on cash flow hedges and other, net of tax, was $31.2 million for the three months ended September 30, 2024 compared to an $18.6 million unrealized gain for the three months ended September 30, 2023. The $49.7 million change was due to a decline in forward interest rates during the three months ended September 30, 2024 compared to an increase in forward interest rates in the prior year period.

Previous wording

Revenues by service offering for the six months ended June 30, 2024 and 2023, together with the percentages of total revenues that each item represented for the periods presented, were as follows (dollars in thousands):

Current wording

Revenues by service offering for the nine months ended September 30, 2024 and 2023, together with the percentages of total revenues that each item represented for the periods presented, were as follows (dollars in thousands):

Previous wording

Residential data service revenues decreased $23.3 million, or 4.8%, due primarily to a 4.7% decrease in ARPU as a result of the implementation of targeted pricing and product offerings in certain markets, including amongst value-conscious customers.

Current wording

Residential data service revenues decreased $40.4 million, or 5.5%, due primarily to a 5.3% decrease in ARPU as a result of the implementation of targeted pricing and product offerings in certain markets, including amongst value-conscious customers.

Previous wording

Residential video service revenues decreased $9.0 million, or 13.5%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted during the first quarter of 2024.

Current wording

Residential video service revenues decreased $27.5 million, or 13.9%, due primarily to a decrease in residential video subscribers, partially offset by a rate adjustment enacted during the first quarter of 2024.

Previous wording

Residential voice service revenues decreased $2.5 million, or 12.9%, due primarily to a decrease in residential voice subscribers.

Current wording

Residential voice service revenues decreased $3.8 million, or 13.4%, due primarily to a decrease in residential voice subscribers.

Previous wording

Business data revenues increased $2.9 million, or 2.7%, due primarily to an increase in business data subscribers.

Current wording

Business data revenues increased $4.5 million, or 2.7%, due primarily to an increase in business data subscribers.

Previous wording

Business other revenues decreased $4.8 million, or 11.3%, due primarily to a decrease in business video subscribers.

Current wording

Business other revenues decreased $6.8 million, or 10.8%, due primarily to a decrease in business video subscribers.

Previous wording

ARPU for the indicated service offerings for the six months ended June 30, 2024 and 2023 were as follows:

Current wording

ARPU for the indicated service offerings for the nine months ended September 30, 2024 and 2023 were as follows:

Previous wording

Operating expenses (excluding depreciation and amortization) were $105.8 million for the three months ended June 30, 2024 and decreased $7.0 million, or 6.2%, compared to the three months ended June 30, 2023. The decrease in operating expenses was primarily attributable to $8.5 million of lower programming costs as a result of video customer losses and a $2.3 million decrease in labor and other compensation-related costs due in part to certain organizational changes implemented during the second quarter of 2024. These decreases were partially offset by higher health insurance costs, network backbone costs and property and other taxes. Operating expenses as a percentage of revenues were 26.8% and 26.6% for the three months ended June 30, 2024 and 2023, respectively.

Current wording

Operating expenses (excluding depreciation and amortization) were $317.0 million for the nine months ended September 30, 2024 and decreased $17.7 million, or 5.3%, compared to the nine months ended September 30, 2023. The decrease in operating expenses was primarily attributable to $25.0 million of lower programming and franchise costs as a result of video customer losses and a decrease in labor and other compensation-related costs due in part to certain organizational changes implemented during the second quarter of 2024. These decreases were partially offset by higher property and other taxes, software costs, network backbone costs, rent expense and utility costs. Operating expenses as a percentage of revenues were 26.6% and 26.4% for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

Selling, general and administrative expenses were $181.2 million for the six months ended June 30, 2024 and increased $8.2 million, or 4.8%, compared to the six months ended June 30, 2023. The increase in selling, general, and administrative expenses was primarily attributable to $6.6 million of severance costs due largely to recent organizational changes as well as increases of $3.0 million in marketing costs, $1.8 million in system conversion costs and $1.3 million in software costs. These increases were partially offset by lower professional services, billing and rent expenses. Selling, general and administrative expenses as apercentage of revenues were 22.7% and 20.4% for the six months ended June 30, 2024 and 2023, respectively.

Current wording

Selling, general and administrative expenses were $269.6 million for the nine months ended September 30, 2024 and increased $4.0 million, or 1.5%, compared to the nine months ended September 30, 2023. The increase in selling, general, and administrative expenses was primarily attributable to $6.6 million of severance costs due largely to the organizational changes implemented during the second quarter of 2024 as well as increases in system conversion costs, software costs and marketing costs, along with rebranding costs that did not occur in the prior year period. These increases were partially offset by lower labor and other compensation-related costs resulting from the aforementioned organizational changes, lower professional services fees and property and other taxes. Selling, general and administrative expenses as apercentage of revenues were 22.6% and 21.0% for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

Depreciation and amortization expense was $171.0 million for the six months ended June 30, 2024 and decreased $1.7 million, or 1.0%, compared to the six months ended June 30, 2023. Depreciation and amortization expense as a percentage of revenues was 21.4% and 20.4% for the six months ended June 30, 2024 and 2023, respectively.

Current wording

Depreciation and amortization expense was $256.1 million for the nine months ended September 30, 2024 and increased $0.5 million, or 0.2%, compared to the nine months ended September 30, 2023. Depreciation and amortization expense as a percentage of revenues was 21.5% and 20.2% for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

Interest expense, net, was $70.7 million for the six months ended June 30, 2024 and decreased $5.2 million, or 6.9%, compared to the six months ended June 30, 2023. The decrease was driven primarily by lower outstanding debt balances and higher interest and investment income.

Current wording

Interest expense, net, was $105.0 million for the nine months ended September 30, 2024 and decreased $9.6 million, or 8.3%, compared to the nine months ended September 30, 2023. The decrease was driven primarily by lower outstanding debt balances and higher interest and investment income during the nine months ended September 30, 2024 compared to the prior year period.

Previous wording

Other expense, net, was $7.8 million for the six months ended June 30, 2024 and consisted primarily of a $15.6 million non-cash loss on fair value adjustment associated with the MBI Net Option, partially offset by a $7.7 million gain related to the C-band spectrum relocation funding received from the federal government. Other expense, net, was $5.2 million for the six months ended June 30, 2023 and consisted primarily of a $14.7 million non-cash loss on fair value adjustment associated with the MBI Net Option and $3.3 million of debt issuance cost write-offs in connection with the entry into the New Credit Agreement, partially offset by a $12.3 million non-cash mark-to-market gain on our investment in Point Broadband.

Current wording

Other expense, net, was $2.5 million for the nine months ended September 30, 2024 and consisted primarily of a $17.1 million non-cash loss on fair value adjustment associated with the MBI Net Option, partially offset by a $7.7 million gain related to the C-band spectrum relocation funding received from the federal government and a $6.9 million non-cash gain associated with our Nextlink equity investment. Other expense, net, was $30.6 million for the nine months ended September 30, 2023 and consisted primarily of a $38.7 million non-cash loss on fair value adjustment associated with the MBI Net Option, a $1.6 million net loss on the sale of equity investments and $3.3 million of debt issuance costs written off in connection with the entry into the New Credit Agreement, partially offset by a $12.3 million non-cash mark-to-market gain on our investment in Point Broadband.

Previous wording

Income tax provision was $17.8 million and $20.9 million for the three months ended June 30, 2024 and 2023, respectively, and our effective tax rate was 23.8% and 23.4% for the three months ended June 30, 2024 and 2023, respectively. The increase in the effective tax rate was due primarily to a decrease in income tax benefits of $1.1 million resulting from lower equity method investment net losses in the current quarter, partially offset by income tax benefits of $0.6 million resulting from a decrease in state income tax rates enacted during the current quarter.

Current wording

Income tax provision was $47.5 million and $52.6 million for the nine months ended September 30, 2024 and 2023, respectively, and our effective tax rate was 20.4% and 20.7% for the nine months ended September 30, 2024 and 2023, respectively. The decrease in the effective tax rate for the nine months ended September 30, 2024 compared to the prior year period was due primarily to an increase in income tax benefits of $5.2 million resulting from a change in valuation allowance related to the fair value adjustment of the MBI Net Option in the current period, partially offset by a decrease in income tax benefits of $3.7 million resulting from lower equity method investment net losses in the current period.

Previous wording

Equity method investment loss was $17.6 million for thesix months ended June 30, 2024 and consisted of our$16.1 million and$1.6 million pro rata share of net losses from our Clearwave Fiber and MBI investments, respectively. Equity method investment loss, net, was$30.0 million for thesix months ended June 30, 2023 and consisted primarily of our$27.3 million and$3.2 million pro rata share of net losses from our Clearwave Fiber and MBI investments, respectively.

Current wording

Equity method investment loss, net, was $65.6 million for thenine months ended September 30, 2024 and consisted primarily of our$62.9 million and$2.8 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively. Equity method investment loss, net, was$80.9 million for thenine months ended September 30, 2023 and consisted primarily of our$77.7 million and$3.6 million proportionate share of net losses from our Clearwave Fiber and MBI investments, respectively.

Previous wording

Unrealized gain on cash flow hedges and other, net of tax was $17.6 million and $3.8 million for the six months ended June 30, 2024 and 2023, respectively. The $13.8 million increase was due todue to a larger increase in forward interest rates during the six months ended June 30, 2024 compared to the prior year period.

Current wording

Unrealized loss on cash flow hedges and other, net of tax, was $13.6 million for the nine months ended September 30, 2024 compared to a $22.3 million unrealized gain for the nine months ended September 30, 2023. The $35.9 million change was due todue to a decline in forward interest rates during the nine months ended September 30, 2024 compared to an increase in forward interest rates in the prior year period.

Previous wording

Adjusted EBITDA is defined as net income plus net interest expense, income tax provision, depreciation and amortization, equity-based compensation, severance and contract termination costs, acquisition-related costs, net (gain) loss on asset sales and disposals, system conversion costs, rebranding costs, net equity method investment (income) loss, net other (income) expense and any special items, as provided in the reconciliation tables below. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business as well as other non-cash or special items and is unaffected by our capital structure or investment activities. This measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and our cash cost of debt financing. These costs are evaluated through other financial measures.

Current wording

Adjusted EBITDA is defined as net income plus net interest expense, income tax provision, depreciation and amortization, equity-based compensation, severance and contract termination costs, acquisition-related costs, net (gain) loss on asset sales and disposals, system conversion costs, rebranding costs, government program exit costs, net equity method investment (income) loss, net other (income) expense and any special items, as provided in the reconciliation tables below. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business as well as other non-cash or special items and is unaffected by our capital structure or investment activities. This measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and our cash cost of debt financing. These costs are evaluated through other financial measures.

Previous wording

As part of our 45% minority equity interest in MBI, we acquired the right, but not the obligation, to purchase all but not less than all of the remaining equity interests in MBI that we do not already own if we so elect between January 1, 2023 and June 30, 2024 (the "Call Option"). We did not elect to exercise the Call Option. Investors affiliated with GTCR LLC, a private equity firm based in Chicago, have the right, but not the obligation, to sell (and to cause all members of MBI other than us to sell) to us and, in such case, we are obligated to purchase all but not less than all of the direct and indirect equity interests in MBI that we do not already own, pursuant to such right which may be exercised between July 1, 2025 through September 30, 2025 (the "Put Option"). The purchase price payable upon the exercise of the Put Option, if applicable, will be calculated under a formula based on a multiple of MBI’s adjusted EBITDA as specified in the definitive documentation governing our investment in MBI. If the Put Option is exercised, we expect the transaction would be consummated within three to nine months thereafter, subject to customary closing conditions and regulatory approvals. We believe that our existing cash balances, the anticipated available capacity under the Revolving Credit Facility at the time of the transaction and our operating cash flows will be sufficient to fund the purchase price payable if the Put Option is exercised without needing to raise additional incremental capital. However, we may also opportunistically pursue additional incremental financing transactions depending on market conditions and other factors.

Current wording

In connection with our investment in MBI, investors affiliated with GTCR LLC, a private equity firm based in Chicago, have the right, but not the obligation, to sell (and to cause all members of MBI other than us to sell) to us and, in such case, we are obligated to purchase all of the direct and indirect equity interests in MBI that we do not already own, pursuant to such right which may be exercised between July 1, 2025 through September 30, 2025 (the "Put Option"). If the Put Option is exercised, the Put Price payable by us will be calculated under a formula based on a multiple of MBI’s adjusted EBITDA for the twelve-month period ended June 30, 2025 and MBI’s total net indebtedness as specified in the definitive documentation governing our investment in MBI. If the Put Option is exercised, we expect the transaction would be consummated within three to nine months thereafter, subject to customary closing conditions and regulatory approvals. Based on currently available information, if the Put Option is exercised, we estimate that (i) the Put Price payable by us for the equity interests of MBI that we do not already own will range between approximately $760 million and $900 million; and (ii) MBI’s total net indebtedness that will be outstanding at the time it becomes a wholly-owned subsidiary will be approximately $775 million to $825 million. These estimates are based on MBI’s past performance and current forecasts and are subject to numerous assumptions and risks including, without limitation, factors that could impact MBI’s performance, such as competition, economic conditions, operating performance and other factors described under“Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. Should the underlying assumptions prove incorrect, or risks materialize, the actual Put Price payable if the Put Option is exercised and the amount of MBI’s indebtedness may differ from the estimated amounts described above. MBI's total revenues for the twelve months ended September 30, 2024 were approximately $320 million and MBI had approximately 226,000 residential and business data customers and a network footprint with approximately 674,000 homes passed as of September 30, 2024. We believe that our existing cash balances, the anticipated available capacity under the Revolving Credit Facility at the time of the transaction and our operating cash flows will be sufficient to fund the purchase price payable if the Put Option is exercised without needing to raise additional incremental capital. However, we may also opportunistically pursue additional incremental financing transactions depending on market conditions and other factors.

Previous wording

The $11.1 million year-over-year decrease in net cash provided by operating activities was primarily attributable to a decrease in Adjusted EBITDA, partially offset by favorable changes in working capital.

Current wording

The $15.0 million year-over-year decrease in net cash provided by operating activities was primarily attributable toa decrease in Adjusted EBITDA, partially offset by favorable changes in working capital.

Previous wording

The $36.8 million year-over-year decrease in net cash used in investing activities was due primarily to a $40.4 million decrease in cash paid for capital expenditures and a $2.3 million increase in proceeds from the sale of assets during the first half of 2024.

Current wording

The $29.6 million year-over-year increase in net cash used in investing activities was due primarily to $56.7 million of combined proceeds from the sale of equity investments during the prior year period that did not recur, a $4.5 million increase in cash paid for equity investments and $4.3 million paid for the Nova acquisition, partially offset by a $34.5 million decrease in cash paid for capital expenditures.

Previous wording

The $39.9 million year-over-year decrease in net cash used in financing activities was due primarily to payments of $83.1 million for share repurchases and $8.1 million for debt issuance costs during the first half of 2023 that did not recur, partially offset by a $49.8 million increase in net debt repayments.

Current wording

The $56.5 million year-over-year decrease in net cash used in financing activities was due primarily to payments of $99.6 million for share repurchases and $8.1 million for debt issuance costs during the prior year period that did not recur, partially offset by a $49.4 million increase in net debt repayments.