Cable One to Restate Financials Due to Equity Award Accounting Errors
Ticker: CABO · Form: 8-K · Filed: Sep 24, 2024 · CIK: 1632127
Sentiment: neutral
Topics: restatement, accounting-errors, financial-reporting
Related Tickers: CABO
TL;DR
Cable One is restating financials for 2023 and early 2024 due to accounting errors on stock awards. Expect amended reports soon.
AI Summary
Cable One, Inc. announced on September 23, 2024, that it will restate its previously issued financial statements for the fiscal year ended December 31, 2023, and for the quarterly periods ended March 31, 2024, and June 30, 2024. This restatement is due to errors identified in the accounting for certain equity awards granted to non-employee directors and employees. The company expects to file amended financial statements once the restatement is complete.
Why It Matters
Investors should be aware that past financial reports may be inaccurate, requiring a review of the company's updated financial position.
Risk Assessment
Risk Level: medium — Restating financial statements can indicate internal control weaknesses or accounting complexities, potentially impacting investor confidence.
Key Players & Entities
- Cable One, Inc. (company) — Registrant
- September 23, 2024 (date) — Date of Earliest Event Reported
- December 31, 2023 (date) — Fiscal year end for restatement
- March 31, 2024 (date) — Quarterly period for restatement
- June 30, 2024 (date) — Quarterly period for restatement
FAQ
What specific financial statements are being restated?
Cable One, Inc. will restate its previously issued financial statements for the fiscal year ended December 31, 2023, and for the quarterly periods ended March 31, 2024, and June 30, 2024.
What is the reason for the restatement?
The restatement is due to errors identified in the accounting for certain equity awards granted to non-employee directors and employees.
When was the earliest event reported in this filing?
The earliest event reported was on September 23, 2024.
What is the company's principal executive office address?
The principal executive offices are located at 210 E. Earll Drive, Phoenix, Arizona 85012.
When does Cable One expect to file the amended financial statements?
The company expects to file amended financial statements once the restatement is complete, though a specific date is not provided in this filing.
Filing Stats: 3,606 words · 14 min read · ~12 pages · Grade level 18.1 · Accepted 2024-09-23 21:19:34
Key Financial Figures
- $0.01 — ich Registered Common Stock, par value $0.01 per share CABO New York Stock Exchange
Filing Documents
- cabo-20240923.htm (8-K) — 296KB
- 0001632127-24-000117.txt ( ) — 431KB
- cabo-20240923.xsd (EX-101.SCH) — 2KB
- cabo-20240923_lab.xml (EX-101.LAB) — 21KB
- cabo-20240923_pre.xml (EX-101.PRE) — 12KB
- cabo-20240923_htm.xml (XML) — 3KB
02 Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition. The information appearing below under Item 4.02 regarding Cable One, Inc.'s (the "Company") previously reported fiscal years ended December 31, 2022 and December 31, 2023 and fiscal quarters ended June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 are incorporated herein by reference. The information appearing below under Item 4.02 refers to certain financial statements that the Company intends to restate. The restatement is not expected to affect the Company's previously reported revenues, capital expenditures, cash flows from operating activities or Adjusted EBITDA.
02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. On September 23, 2024, the Audit Committee of the Board of Directors (the "Audit Committee") of the Company, in consultation with management, concluded that the following previously issued consolidated financial statements of the Company (and related earnings releases, press releases, shareholder communications, investor presentations or other materials describing relevant portions of such financial statements) should no longer be relied on because of an error in such financial statements related to the Company's equity method accounting of its investment in Clearwave Fiber LLC, a joint venture in which the Company contributed certain fiber operations and third-party investors contributed cash: the audited consolidated financial statements for the fiscal years ended December 31, 2022 and December 31, 2023, contained within the Annual Reports on Form 10-K for such years (and the associated audit reports of the Company's independent registered public accounting firm); and the unaudited condensed consolidated financial statements contained within the Quarterly Reports on Form 10-Q for the quarterly periods ended June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024. Accordingly, the Company intends to restate these financial statements by amending its Annual Report on Form 10-K for the year ended December 31, 2023 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024 (the "Restated Filings") as soon as reasonably practicable. Subsequent to the issuance of the Company's condensed consolidated financial statements as of and for the three and six months ended June 30, 2024, the Company identified errors in the equity method accounting for its partial ownership of Clearwave Fiber LLC. Specifically, the Company did not appropriately allocate the
Controls and Procedures
Controls and Procedures The errors described above and the related restatement were the result of a material weakness in the Company's internal control over financial reporting due to the lack of an effectively designed control activity related to the evaluation of the capital structure of equity method investments when determining the proportionate share of earnings or losses. As a result, management concluded that the Company's internal control over financial reporting was not effective as of December 31, 2023, and the Company's disclosure controls and procedures were not effective as of December 31, 2023, March 31, 2024 and June 30, 2024. Accordingly, the Audit Committee concluded that management's report on internal control over financial reporting as of December 31, 2023, and PricewaterhouseCoopers LLP's opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2023, should no longer be relied upon. Supplemental Schedules The following tables summarize the previously reported amounts impacted by the errors described herein, as well as the preliminary adjustments and the estimated restated amounts. The restated amounts shown herein are preliminary and unaudited estimates and may be subject to change as we complete our restatement procedures and prepare the Restated Filings. Additional information will be provided in the Company's Form 10-K/A filing regarding the quarterly periods impacted in 2022 and 2023 that are not disclosed herein. The following tables do not address the immaterial errors referenced above which will also be reflected in the Restated Filings once made. As of and for the year ended December 31, 2022 Consolidated Balance Sheet As of December 31, 2022 (dollars in thousands) As Reported Adjustment As Restated Equity investments $ 1,195,221 $ (27,743) $ 1,167,478 Total assets $ 6,913,890 $ (27,743) $ 6,886,147 Deferred income taxes $ 966,821 $ (6,682) $ 960,139 Total liabilities $ 5,1
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Cable One, Inc. By: /s/ Peter N. Witty Name: Peter N. Witty Title: Chief Legal and Administrative Officer Date: September 23, 2024