Cable One Amends 10-K for Clearwave Fiber Accounting Error

Ticker: CABO · Form: 10-K/A · Filed: Oct 2, 2024 · CIK: 1632127

Sentiment: neutral

Topics: amendment, accounting-error, restatement

TL;DR

Cable One fixed a Clearwave Fiber accounting mistake in its 2023 10-K filing.

AI Summary

Cable One, Inc. filed a 10-K/A amendment on October 2, 2024, to correct an error in its equity method accounting for Clearwave Fiber. This restatement impacts the condensed consolidated financial statements for the periods ending June 30, 2024. The company is based in Phoenix, AZ, and operates in the cable and pay television services industry.

Why It Matters

This amendment corrects accounting for an investment, potentially affecting reported financial performance and investor understanding of the company's financial health.

Risk Assessment

Risk Level: low — This is an amendment to correct a prior filing, not a new material event, suggesting a low immediate risk.

Key Players & Entities

FAQ

What specific error was identified in the equity method accounting for Clearwave Fiber?

The filing states an error was identified in relation to the equity method accounting for Clearwave Fiber, but does not detail the specific nature of the error in the provided text.

Which financial statements are being restated due to this amendment?

The condensed consolidated financial statements as of and for the three and six months ended June 30, 2024, are being restated.

When was the original 10-K filing for the fiscal year ending December 31, 2023, made?

The filing does not explicitly state the date of the original 10-K filing, but this amendment (10-K/A) was filed on October 2, 2024, referencing the 2023 fiscal year.

What is Cable One, Inc.'s primary business sector?

Cable One, Inc. operates in the CABLE & OTHER PAY TELEVISION SERVICES sector, with SIC code 4841.

What is the company's principal business address?

The company's principal business address is 210 E. EARLL DRIVE, PHOENIX, AZ 85012.

Filing Stats: 4,450 words · 18 min read · ~15 pages · Grade level 17.5 · Accepted 2024-10-01 19:13:59

Key Financial Figures

Filing Documents

, Item 1, Bu siness

Part I, Item 1, Bu siness

, Item 1A, Risk Factors

Part I, Item 1A, Risk Factors

, Item 7, Manag e ment 's Discussion and Analysis of Finan cial Condition and Results of Operations

Part II, Item 7, Manag e ment 's Discussion and Analysis of Finan cial Condition and Results of Operations Table of Contents

, Item 8, Financial Statements and Supplementary Data

Part II, Item 8, Financial Statements and Supplementary Data

, Item 9A, Controls and Procedures

Part II, Item 9A, Controls and Procedures

, Item 11, Executive Compensation

Part III, Item 11, Executive Compensation

, Item 15, Exhibits and Financial Statement Schedule s

Part IV, Item 15, Exhibits and Financial Statement Schedule s The exhibit list included in "Part IV, Item 15, Exhibits and Financial Statement Schedules" herein has been amended to contain currently dated certifications from the Company's Chief Executive Officer and Chief Financial Officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 and filed as Exhibits 31.1, 31.2 and 32, as well as an updated Consent of Independent Registered Public Accounting Firm filed as Exhibit 23.1. In accordance with applicable SEC rules, this Form 10-K/A also includes an updated signature page and Report of Independent Registered Public Accounting Firm. Refer to note 3 "Restatement of Previously Issued Consolidated Financial Statements" and note 7 "Equity Investments" in the notes to the consolidated financial statements in this Form 10-K/A for additional information, including a summary of the impacts of these adjustments. Control Considerations Management concluded that the Company's ICFR was not effective as of December 31, 2023, and the Company's DCPs were not effective as of December 31, 2023, March 31, 2024 and June 30, 2024 due to a material weakness in ICFR. Specifically, there was a 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 to recognize. See " Part II, Item 9A, Controls and Procedures." Table of Contents TABLE OF CONTENTS PART I Item 1.

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 25 Item 1B. Unresolved Staff Comments 38

Cybersecurity 38

Item 1C. Cybersecurity 38 Item 2.

Properties

Properties 40 Item 3.

Legal Proceedings

Legal Proceedings 40 Item 4. Mine Safety Disclosures 40 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 41 Item 6. [Reserved] 42 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 60 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 60 Item 9A.

Controls and Procedures

Controls and Procedures 61 Item 9B. Other Information 62 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 62 PART III Item 10. Directors, Executive Officers and Corporate Governance 63 Item 11.

Executive Compensation

Executive Compensation 63 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 63 Item 13. Certain Relationships and Related Transactions, and Director Independence 63 Item 14. Principal Accountant Fees and Services 63 PART IV Item 15. Exhibits and Financial Statement Schedules 64 Item 16. Form 10-K Summary 68

Signatures

Signatures S- 1 Index to Consolidated Financial Statements F- 1 1 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Amended 2023 Annual Report contains "forward-looking statements" that involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business, strategy, acquisitions and strategic investments, dividend policy, financial results and financial condition. Forward-looking statements often include words such as "will," "should," "anticipates," "estimates," "expects," "projects," "intends," "plans," "believes" and words and terms of similar substance in connection with discussions of future operating or financial performance. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Our actual results may vary materially from those expressed or implied in our forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by us or on our behalf. Important factors that could cause our actual results to differ materially from those in our forward-looking statements include government regulation, economic, strategic, political and social conditions and the following factors: rising levels of competition from historical and new entrants in our markets; recent and future changes in technology, and our ability to develop, deploy and operate new technologies, service offerings and customer service platforms; our ability to continue to grow our residential data and business services revenues and customer base; increases in programming costs and retransmission fees; our ability to obtain hardware, software and operational support from vendors; risks that we may fail to realize the benefits anticipated as a resu

BUSINESS

ITEM 1 BUSINESS Restatement of Prior Period Financial Statements As previously discussed under the heading "Explanatory Note," we are restating our previously issued consolidated financial statements and related notes for the years ended December 31, 2023 and December 31, 2022. Refer to notes 3 and 7 in the notes to the consolidated financial statements in this Amended 2023 Annual Report for additional information. This "Description of Business" does not substantively amend, update or change any disclosures contained in the Original 2023 Annual Report, and accordingly, does not reflect any information or events occurring after February 23, 2024, the filing date of the Original 2023 Annual Report, or modify or update those disclosures affected by events that occurred at a later date or facts that subsequently became known to us. The "Corporate History" section within this "Business" has been updated to reflect the restatement. Overview Cable One is 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 December 31, 2023, approximately 74% of our customers were located in seven

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