Cable One Inc (CABO) 2023 Q3 法說會逐字稿

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cable One Third Quarter 2023 Earnings Call. (Operator Instructions)

謝謝你的支持。我叫艾瑞克，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Cable One 2023 年第三季財報電話會議。 （操作員說明）

I would now like to turn the call over to Jordan Morkert, Vice President of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係副總裁喬丹莫克特 (Jordan Morkert)。請繼續。

Good afternoon, and welcome to Cable One's Third Quarter 2023 Earnings Call. We're glad to have you join us as we review our results. 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. 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 in today's earnings release and in our recent SEC filings.

下午好，歡迎參加 Cable One 2023 年第三季財報電話會議。我們很高興您加入我們來審查我們的結果。在我們繼續之前，我想提醒您，今天的討論包含與涉及風險和不確定性的未來事件相關的前瞻性陳述。您可以找到可能導致 Cable One 的實際結果與今天電話會議中討論的前瞻性陳述存在重大差異的因素，包括今天的收益報告和我們最近向 SEC 提交的文件。

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. 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. The 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.

除法律要求外，第一電纜沒有義務並明確否認有任何義務更新或更改其前瞻性陳述，無論是由於新資訊、未來事件或其他原因。此外，今天的演講還將討論某些不符合美國公認會計原則或公認會計原則的財務措施。本次電話會議中討論的非 GAAP 財務指標與最直接可比較的 GAAP 指標的調整表可以在我們的收益報告或我們的網站 ir.cableone.net 上找到。

Joining me on today's call is our President and CEO, Julie Laulis; and Todd Koetje, our CFO. With that, let me turn the call over to Julie.

加入我今天的電話會議的是我們的總裁兼執行長 Julie Laulis；以及我們的財務長 Todd Koetje。接下來，讓我把電話轉給朱莉。

Thank you, Jordan, and good afternoon, everyone. We appreciate you joining us for today's call. Before we get into third quarter results, I'd like to touch on a few unique strengths of our business. More than a decade ago, we strategically pivoted our focus from linear video to broadband connectivity and business services, well in advance of our peers. Since that time, we have made significant investments in our network with the intent of anticipating and exceeding the evolving connectivity needs of our customers and communities.

謝謝喬丹，大家下午好。我們感謝您參加今天的電話會議。在我們公佈第三季業績之前，我想談談我們業務的一些獨特優勢。十多年前，我們策略性地將重點從線性視訊轉向寬頻連線和商業服務，遠遠領先同行。從那時起，我們對網路進行了大量投資，旨在預測並超越客戶和社區不斷變化的連接需求。

Fast forward to today, and we are proud to have engineered a robust and reliable network with enough capacity to handle up to 5x our customers' current peak usage as well as a growing set of service offerings for residential customers and businesses of all sizes. Equally as important is the footprint in which we deliberately chose to operate, which consists primarily of small cities and large towns across rural America. We continue to enjoy the relatively less competitive environment in these markets, and our position is further solidified by our incumbent status, enabling ongoing network upgrades at a fraction of the cost of new entrants.

快進到今天，我們很自豪能夠設計出一個強大而可靠的網絡，其容量足以處理客戶當前峰值使用量的 5 倍，並為住宅客戶和各種規模的企業提供越來越多的服務產品。同樣重要的是我們特意選擇的經營足跡，主要包括美國農村地區的小城市和大城市。我們繼續享受這些市場中競爭相對較弱的環境，並且我們的現有地位進一步鞏固了我們的地位，使我們能夠以新進入者成本的一小部分進行持續的網路升級。

Above all, our strength lies with our dedicated associates, the majority of whom live and work in the communities we serve. Our associates are deeply invested in ensuring their cities and towns thrive, not just because it's good for business, but because they have a personal stake in driving progress and making a positive difference in their communities. They are the driving force behind our unique culture and consequently, our tangible results. These are just a few key differentiators that reinforce our confidence in the long-term future of Cable One.

最重要的是，我們的優勢在於我們敬業的員工，他們中的大多數人在我們服務的社區生活和工作。我們的員工投入了大量資金，確保他們的城市和城鎮蓬勃發展，不僅因為這對商業有利，而且因為推動進步和為社區帶來積極影響與他們個人息息相關。它們是我們獨特文化背後的驅動力，也是我們實際成果的驅動力。這些只是增強我們對電纜一號長期未來信心的幾個關鍵差異化因素。

Looking ahead, we see significant runway for expanding our broadband reach, and we recognize the need to strike the right balance between ARPU and subscriber growth. As part of our forward-looking vision, we will continue to assess the next generation of products and services based on insights into customer needs. Our sights are set on continuing to compete fiercely while capturing new and profitable market segments. We are confident this strategy will position us to grow well into the future.

展望未來，我們看到了擴大寬頻覆蓋範圍的重要途徑，並且我們認識到需要在 ARPU 和用戶成長之間取得適當的平衡。作為我們前瞻性願景的一部分，我們將繼續根據對客戶需求的洞察來評估下一代產品和服務。我們的目標是繼續激烈競爭，同時佔領新的、有利可圖的細分市場。我們相信，這項策略將使我們在未來取得良好發展。

Concurrently, we are navigating the final stages of decline in our video product. Having predicted this decline over a decade ago, we have less exposure to the video business today. As we draw down on our remaining video subscribers, we are preparing for an environment without a video business, including planning for a reduction in our remaining nonprogramming support costs. It's with these foundational strengths and forward-looking strategies in line that we share our latest performance results.

同時，我們的視訊產品正處於衰退的最後階段。十多年前就預測到了這種下降，現在我們對視訊業務的接觸較少。當我們利用剩餘的視訊訂戶時，我們正在為沒有視訊業務的環境做好準備，包括計劃減少剩餘的非程式支援成本。正是憑藉這些基礎優勢和前瞻性策略，我們分享了最新的業績成果。

In the third quarter, we delivered residential broadband revenue growth of 5.8% from the prior year, while our commercial Internet business grew even more rapidly. Adjusted EBITDA growth of 2.4% from the prior year with a margin expansion of 180 basis points to 54.7%. Capital expenditure decrease of 22.6% year-over-year, resulting in adjusted EBITDA less CapEx of $152.2 million, an increase of 22.6% year-over-year. In the third quarter, we demonstrated strong free cash flow conversion as a result of multiple years of efficient capital investment and significant network capacity, even in a more muted economic environment.

第三季度，住宅寬頻營收年增5.8%，商業網路業務成長更快。調整後 EBITDA 較上年成長 2.4%，利潤率擴大 180 個基點至 54.7%。資本支出較去年同期下降 22.6%，調整後 EBITDA 減去資本支出為 1.522 億美元，較去年同期成長 22.6%。在第三季度，即使在經濟環境較為疲軟的情況下，由於多年的高效資本投資和強大的網路容量，我們也展現了強勁的自由現金流轉換。

Looking at residential broadband, we saw a decrease of approximately 1,300 customers in the third quarter as compared to the second quarter of 2023. While we continue to experience the side effects of a subdued home move environment and some competitive pressures, there were signs of improvement as our overall connects increased relative to the past 3 quarters coupled with churn continuing near prepandemic loads.

就住宅寬頻而言，與 2023 年第二季相比，我們第三季的客戶數量減少了約 1,300 名。雖然我們繼續受到搬家環境低迷和一些競爭壓力的副作用，但有改善的跡象因為我們的整體連線數相對於過去三個季度有所增加，且客戶流失率仍在接近疫情前的負載。

As I mentioned at the top of the call, one of our best opportunities over the long term is driving higher broadband penetration in our markets. We are better aligning ourselves to this growth opportunity by supplementing our prioritization of premium customers with a focus on new customer segments within our existing footprint. In practice, this could mean ongoing product enhancements at higher price points for our premium customers while targeting unique product offers and service models to more value-conscious customers to grow this segment profitably.

正如我在電話會議開頭提到的，從長遠來看，我們最好的機會之一是推動市場中更高的寬頻普及率。我們透過補充我們對優質客戶的優先考慮，重點關注現有業務範圍內的新客戶群，以更好地適應這一成長機會。實際上，這可能意味著我們以更高的價格為我們的優質客戶提供持續的產品增強，同時為更有價值的客戶提供獨特的產品和服務模式，以實現該細分市場的獲利成長。

For example, during the last month of the quarter, we introduced a short-term promotion of $25 for 100 megs designed to attract value-focused market segments. That test promotion drove incremental new connects, while we saw the vast majority of new connects by product tiers with faster speed and higher price points than the promotional offer. We will continue to test and learn while targeting different market segments, maintaining a methodical approach that prioritizes profitable long-term results.

例如，在本季的最後一個月，我們推出了 100 兆 25 美元的短期促銷活動，旨在吸引註重價值的細分市場。該測試促銷推動了增量新連接，同時我們看到按產品層劃分的絕大多數新連接的速度比促銷優惠更快，價格也更高。我們將繼續測試和學習，同時針對不同的細分市場，保持有條不紊的方法，優先考慮可獲利的長期結果。

Our high sell-in underscores the sustained demand for our premium speed tiers, a key factor in the 6.5% year-over-year increase in residential broadband ARPU. While pleased with this ARPU growth, our priority is a balance of subscribers and ARPU, with a current focus on expanding our subscriber base.

我們的高銷量凸顯了對我們優質速度等級的持續需求，這是住宅寬頻 ARPU 年比成長 6.5% 的關鍵因素。雖然對 ARPU 的成長感到滿意，但我們的首要任務是用戶和 ARPU 的平衡，目前的重點是擴大我們的用戶群。

Turning to business services. Revenues fell slightly by 0.4% year-over-year. When excluding for video and phone, the connectivity side of the business is strong, showing growth in the quarter that outpaced even that of our residential broadband revenue. Despite facing economic pressures related to higher interest rates, our business services team continues to showcase resilience. Amid these challenges, our teams are relentlessly committed to evolving our data and fiber offerings, streamlining our operations and setting new standards in customer satisfaction through white glove service.

轉向商業服務。收入較去年小幅下降0.4%。在排除視訊和電話業務後，該業務的連接方面表現強勁，本季的成長甚至超過了我們的住宅寬頻收入。儘管面臨與利率上升相關的經濟壓力，我們的商業服務團隊仍持續展現韌性。面對這些挑戰，我們的團隊堅持不懈地致力於發展我們的數據和光纖產品，簡化我們的運營，並透過白手套服務設定客戶滿意度的新標準。

As an illustration of our proactive approach, we are in advanced stages to upgrade wholesale fiber networks to 10 gigabits with several customers, a strategic move designed to extend contracts and boost long-term revenues. Moreover, with the recent launch of Business Wi-Fi Plus, we are reinforcing our commitment to using technology to enhance customer experiences. An always-on mesh Wi-Fi solution tailored for small to medium-sized businesses, Business Wi-Fi Plus guarantees uninterrupted coverage, keeping businesses and their customers securely connected while delivering optimal speed and performance.

作為我們積極主動方法的例證，我們正處於與多個客戶將批發光纖網路升級到 10 Gb 的後期階段，這是一項旨在延長合約並增加長期收入的策略性舉措。此外，隨著最近推出的 Business Wi-Fi Plus，我們正在強化我們利用科技增強客戶體驗的承諾。 Business Wi-Fi Plus 是一款專為中小型企業量身定制的始終在線的網狀Wi-Fi 解決方案，可保證不間斷的覆蓋範圍，讓企​​業及其客戶保持安全連接，同時提供最佳的速度和性能。

Moving to a key driver of our success, our dependable advanced network infrastructure, we continue to see and meet the strong appetite for data with average customer demand reaching an all-time high of 646 gigabytes per month. Equally telling, more than 20% of our residential customers now exceed 1 terabyte of usage each month, an increase of 18% from the same period last year.

轉向我們成功的關鍵驅動力——我們可靠的先進網路基礎設施，我們繼續看到並滿足對數據的強烈需求，平均客戶需求達到每月 646 GB 的歷史最高水平。同樣重要的是，我們超過 20% 的住宅客戶現在每月的使用量超過 1 TB，比去年同期增加了 18%。

Our average network utilization during peak hours remained steady with downstream and upstream of 20% and 19%, respectively. The ample network capacity enabled by years of network investments fuel our confidence in our ability to stay well ahead of the consumption curve in a highly capital-efficient manner.

我們在尖峰時段的平均網路利用率保持穩定，下游和上游分別為 20% 和 19%。多年的網路投資帶來的充足網路容量增強了我們對以高度資本效率的方式保持領先於消費曲線的能力的信心。

Looking at wired competition. While we see competition continue to grow, in a majority of our markets, we do not compete against an Internet service provider that offers 100 meg speeds or higher. Regardless of speeds or technology, we operate with a mindset that every market is highly competitive. We will meet that competition by turning the focus to our customers and our communities, ensuring we provide the trusted service our customers have come to expect from Cable One.

看看有線競爭。雖然我們看到競爭持續加劇，但在我們的大多數市場中，我們並不與提供 100 兆或更高速度的網路服務供應商競爭。無論速度或技術如何，我們的經營理念都是每個市場都競爭激烈。我們將把重點轉向我們的客戶和社區，以應對這一競爭，確保我們提供客戶期望從 Cable One 獲得的值得信賴的服務。

Industry reports on mobile fixed wireless indicate that net adds may have peaked. As previously indicated, we have not experienced a material impact to our customer churn due to mobile fixed wireless competition. There likely is some impact to net adds as switchers from DSL or new entrants try fixed wireless as an initial solution. In the long run, we are confident that our fixed network will maintain superiority in terms of both speed and reliability while also delivering a substantial cost advantage relative to the significant capacity it can generate. With that said, we are well positioned to meet the growing data demands of customers efficiently and economically now and in the future.

有關行動固定無線的行業報告表明淨增加量可能已經達到頂峰。如前所述，我們的客戶流失並未因行動固定無線競爭而受到重大影響。隨著 DSL 的切換者或新進入者嘗試將固定無線作為初始解決方案，這可能會對網路增加產生一些影響。從長遠來看，我們相信我們的固定網路將在速度和可靠性方面保持優勢，同時相對於其可產生的巨大容量而言，還具有巨大的成本優勢。話雖如此，我們已經做好充分準備，能夠有效率、經濟地滿足現在和未來客戶不斷增長的數據需求。

In the third quarter, we continued to execute against our digital transformation and integration roadmaps. The expansion of our advanced customer contact center platform in Sparklight, following its initial launch in the Fidelity footprint, is driving greater efficiencies for our associates, enhancing performance across all key contact center metrics, including time to answer, service levels and associate productivity. We saw similar efficiencies for our Fidelity and CableAmerica brands as we transition them onto our financial ERP, moving us one step closer to a unified platform for all brands.

第三季度，我們繼續執行數位轉型和整合路線圖。繼在 Fidelity 範圍內首次推出後，我們在 Sparklight 中的先進客戶聯絡中心平台的擴展正在為我們的員工提高效率，提高所有關鍵聯絡中心指標的績效，包括應答時間、服務水平和員工生產力。當我們將 Fidelity 和 CableAmerica 品牌轉移到我們的財務 ERP 上時，我們看到了類似的效率，這使我們向所有品牌的統一平台又近了一步。

These ongoing platform consolidations are reducing costs and enhancing operational efficiencies by merging overlapping systems into a single coherent structure. As we move closer to full integration of our brands, we continue to evaluate all opportunities to increase agility and eliminate pain points in pursuit of associate and customer goodness.

這些正在進行的平台整合透過將重疊的系統合併到一個單一的連貫結構中來降低成本並提高營運效率。隨著我們越來越接近品牌的全面整合，我們將繼續評估所有提高敏捷性和消除痛點的機會，以追求員工和客戶的利益。

We also remain committed to assessing the various government funding opportunities. We're exploring underserved areas adjacent to our markets, where our current infrastructure offers a significant edge for network extension. Our strategy is twofold. We opportunistically pursue grants that align with our return on investment criteria and advocate for allocating public resources to genuinely unserved or underserved communities. We recently demonstrated this commitment in one of our states where we defeated an attempt to provide government subsidies in an area where we already provide robust upstream and downstream bandwidth.

我們也持續致力於評估各種政府資助機會。我們正在探索與我們的市場相鄰的服務不足的地區，我們目前的基礎設施為網路擴展提供了顯著的優勢。我們的策略是雙重的。我們機會主義地尋求符合我們的投資回報標準的贈款，並主張將公共資源分配給真正沒有服務或服務不足的社區。我們最近在我們的一個州展示了這項承諾，在我們已經提供強大的上行和下行頻寬的地區，我們擊敗了提供政府補貼的嘗試。

Turning to our unconsolidated investments. Residential and business data customers collectively expanded by roughly 12,800 or 2.7% sequentially from Q2 of 2023. These figures do not include the activities of Metronet or Ziply, where our investments are less significant. These results are a testament to the effectiveness of the straightforward strategy employed by our seasoned business partners, delivering premium broadband services across rural America.

轉向我們的未合併投資。自 2023 年第二季以來，住宅和商業數據客戶總共增加了約 12,800 個，即 2.7%。這些數字不包括 Metronet 或 Ziply 的活動，我們在這兩個領域的投資不太重要。這些結果證明了我們經驗豐富的業務合作夥伴所採用的簡單策略的有效性，即在美國農村地區提供優質寬頻服務。

Before handing the call over to Todd, I'd like to take a moment to welcome Matthew Armstrong, who was recently appointed to the newly-created role of Senior Vice President, Residential Services. Earlier this fall, we restructured residential services as a business unit, similar to the business services side of the house. Matthew is responsible for the overall strategy and day-to-day operations of the residential services division, which includes marketing, brand and communications.

在將電話轉交給托德之前，我想花一點時間歡迎馬修·阿姆斯特朗，他最近被任命為新設立的住宅服務高級副總裁。今年秋天早些時候，我們將住宅服務重組為一個業務部門，類似於房屋的商業服務部門。馬修負責住宅服務部門的整體策略和日常運營，包括行銷、品牌和傳播。

Matthew previously worked at Cable One from 2010 to 2014. In his prior role as Vice President of Strategic Planning and Finance, he led the pivotal effort to shift Cable One's focus to residential Internet and business services and away from video. Before coming back to Cable One, Matthew worked at several startup ventures, including serving as Co-Founder and CEO of a startup in San Francisco. I'm confident he will be a tremendous asset as we double down on our work to grow subscribers and strengthen our competitive advantage.

Matthew 曾於 2010 年至 2014 年在 Cable One 工作。在擔任策略規劃和財務副總裁期間，他領導了將 Cable One 的重點從視訊轉向住宅網路和商業服務的關鍵工作。在回到 Cable One 之前，Matthew 曾在多家新創公司工作過，包括擔任舊金山一家新創企業的共同創辦人兼執行長。我相信，當我們加倍努力增加訂戶並增強我們的競爭優勢時，他將成為一筆巨大的財富。

As disclosed earlier this week, we recently implemented other key changes to our leadership team that align with our focus on customer growth, digital transformation and a superior customer and associate experience.

正如本週稍早所揭露的，我們最近對領導團隊實施了其他關鍵變革，這些變革與我們對客戶成長、數位轉型以及卓越的客戶和員工體驗的關注相一致。

And now, Todd, will provide a full recap of our third quarter financial performance.

現在，托德將全面回顧我們第三季的財務表現。

Thanks, Julie. Starting with revenue. Total revenues for the third quarter of 2023 were $420.3 million compared to $424.7 million in the third quarter of 2022, a 1% decrease. The decrease was primarily due to a continued decline in lower-margin residential and business video revenues.

謝謝，朱莉。從收入開始。 2023 年第三季的總營收為 4.203 億美元，較 2022 年第三季的 4.247 億美元下降 1%。下降的主要原因是利潤較低的住宅和商業視訊收入持續下降。

The growth of our foundational product lines in residential and commercial broadband continue to propel our business forward. As the demand for reliable high-speed broadband expands across all customer segments, so does confidence in our continued success and ability to strike the right long-term balance between subscriber and ARPU growth.

我們住宅和商業寬頻基礎產品線的成長繼續推動我們的業務向前發展。隨著所有客戶群對可靠高速寬頻的需求不斷擴大，人們對我們持續成功以及在用戶和 ARPU 成長之間實現長期平衡的能力的信心也隨之增強。

For Q3 2023, our residential data revenues expanded 5.8% year-over-year when compared to Q3 2022. Despite a decline of 0.4% in our total business services revenues year-over-year, data services within this segment experienced meaningful growth in the quarter. This growth is noteworthy as our reported business services still encompasses video and voice revenues, bearing similarities to our residential segment dynamics.

For Q3 2023, our residential data revenues expanded 5.8% year-over-year when compared to Q3 2022. Despite a decline of 0.4% in our total business services revenues year-over-year, data services within this segment experienced meaningful growth in the四分之一.這種成長值得注意，因為我們報告的商業服務仍然包含視訊和語音收入，與我們的住宅細分市場動態相似。

Operating expenses were $109.7 million or 26.1% of revenues in the third quarter of 2023 compared to $120.5 million or 28.4% of revenues in the comparable quarter of the prior year, a 230 basis point improvement, driven largely by a $14.8 million decrease in video programming and franchise costs. Selling, general and administrative expenses were $92.7 million for the third quarter of 2023 compared to $86 million in the prior year quarter.

2023 年第三季營運費用為1.097 億美元，佔營收的26.1%，而去年同期營運費用為1.205 億美元，佔營收的28.4%，提高了230 個基點，這主要是由於影音節目減少了1,480 萬美元。和特許經營成本。 2023 年第三季的銷售、一般和管理費用為 9,270 萬美元，而去年同期為 8,600 萬美元。

SG&A as a percentage of revenue was 22.1% for the third quarter of 2023 compared to 20.3% for Q3 of 2022. The year-over-year increase was primarily driven by increased labor and marketing expense. Adjusted EBITDA was $230 million for the third quarter, an increase of 2.4% when compared to the third quarter of 2022. Our adjusted EBITDA margin for the third quarter of 2023 was 54.7%, a 180 basis point improvement compared to the prior year quarter and a sequential increase of 20 basis points as we continue to drive growth in our higher-margin advanced broadband products.

2023 年第三季的銷售、管理及行政費用佔收入的百分比為 22.1%，而 2022 年第三季為 20.3%。年成長主要是由於勞動力和行銷費用的增加。第三季調整後 EBITDA 為 2.3 億美元，比 2022 年第三季成長 2.4%。2023 年第三季調整後 EBITDA 利潤率較高的先進寬頻產品的成長，季增了20 個基點。

Capital expenditures totaled $77.8 million for the third quarter of 2023, which equates to 33.8% of adjusted EBITDA compared to $100.5 million or 44.7% in the prior year quarter. During the third quarter, we invested $9.5 million of CapEx for new market expansion initiatives and $4 million for integration activities. Our year-over-year decrease in capital expenditures stemmed from our strategic working capital optimization initiatives and our proactive long-term network investment strategy.

2023 年第三季的資本支出總計 7,780 萬美元，相當於調整後 EBITDA 的 33.8%，而去年同期為 1.005 億美元，佔 44.7%。第三季度，我們為新的市場擴張計畫投資了 950 萬美元的資本支出，為整合活動投資了 400 萬美元。我們的資本支出較去年同期下降源自於我們的策略營運資本優化措施和積極的長期網路投資策略。

Adjusted EBITDA less capital expenditures was $152.2 million for the third quarter of 2023, an increase of 22.6% from the prior year quarter and 1.6% on a sequential quarterly basis as we benefit from ongoing capital efficiency and strong free cash flow conversion.

2023 年第三季調整後 EBITDA 減去資本支出為 1.522 億美元，比去年同期成長 22.6%，季增 1.6%，因為我們受益於持續的資本效率和強勁的自由現金流轉換。

As we continue to evolve and adapt to our changing landscape, our approach to capital allocation remains grounded in our core principles: to invest prudently in state-of-the-art, reliable broadband infrastructure and expanding our reach in and around the areas we already serve. We will also continue to balance strategic acquisition and investment opportunities with a very disciplined and long-term-oriented balance sheet management philosophy.

隨著我們不斷發展和適應不斷變化的環境，我們的資本配置方法仍然立足於我們的核心原則：謹慎投資於最先進、可靠的寬頻基礎設施，並擴大我們在已經涉足的領域及其周邊地區的影響力。服務。我們也將繼續以非常嚴格且麵向長期的資產負債表管理理念來平衡策略性收購和投資機會。

In the third quarter of 2023, we distributed $16.7 million in dividends, and we repurchased nearly 24,000 shares of our common stock for $16.5 million. We also repaid $54.6 million of debt in the quarter, $50 million of which was a voluntary repayment of our outstanding revolver balance. Subsequent to quarter end, we repaid an incremental $50 million in debt, bringing this voluntary reduction to $150 million in the last 5 months.

2023 年第三季度，我們發放了 1,670 萬美元的股息，並以 1,650 萬美元的價格回購了近 24,000 股普通股。本季我們也償還了 5,460 萬美元的債務，其中 5,000 萬美元是我們未償左輪手槍餘額的自願償還。季度末後，我們償還了增量 5,000 萬美元的債務，使過去 5 個月內自願減少的債務達到 1.5 億美元。

As of September 30, we had approximately $240 million of cash and cash equivalents on hand. Our debt balance was approximately $3.7 billion, consisting of approximately $1.8 billion in term loans, $920 million in convertible notes, $650 million in unsecured notes, $388 million of revolver borrowings and $5 million of finance lease liabilities. We also had $612 million available for additional borrowings under our $1 billion committed revolving credit facility.

截至 9 月 30 日，我們手頭上持有約 2.4 億美元的現金和現金等價物。我們的債務餘額約為 37 億美元，包括約 18 億美元的定期貸款、9.2 億美元的可轉換票據、6.5 億美元的無擔保票據、3.88 億美元的循環借款和 500 萬美元的融資租賃負債。我們還根據 10 億美元的承諾循環信貸安排提供了 6.12 億美元的額外借款。

Our weighted average cost of debt for the quarter was just under 4.3%. Our net leverage ratio was 3.8x, and the vast majority of our borrowings are either fixed issuance or have been synthetically fixed under long-term contracts, considerably mitigating our exposure to the prevailing rate environment. As mentioned in last quarter's call, our equity investment in Wisper was redeemed for total cash proceeds of nearly $36 million, and our investment in the Tristar SPAC was divested for total cash proceeds of nearly $21 million during the third quarter.

本季我們的加權平均債務成本略低於 4.3%。我們的淨槓桿率為 3.8 倍，我們的絕大多數借款要么是固定發行的，要么是根據長期合約綜合固定的，這大大減輕了我們對現行利率環境的風險。正如上季電話會議中所提到的，第三季我們對 Wisper 的股權投資被贖回，現金收益總額接近 3,600 萬美元，而我們對 Tristar SPAC 的投資被剝離，現金收益總額近 2,100 萬美元。

Our investment strategy remains focused on pursuing opportunities in rural broadband that deliver growth and returns exceeding our benchmarks and aligning with many of the brightest minds and proven operators within the communications sector. We're committed to long-term value creation with these investments, whether through strategic monetization or future integrations.

我們的投資策略仍然專注於尋找農村寬頻領域的機會，這些機會能夠帶來超出我們基準的成長和回報，並與通訊行業中許多最聰明的人才和成熟的營運商保持一致。我們致力於透過這些投資創造長期價值，無論是透過策略貨幣化還是未來整合。

Finally, as a reminder, we posted trending sheets on our Investor Relations website, making it easier to see several quarters' worth of sequential changes in many of our key operating and financial metrics. All figures are presented on a consolidated as-reported basis.

最後，作為提醒，我們在投資者關係網站上發布了趨勢表，以便更容易看到我們許多關鍵營運和財務指標的幾個季度的連續變化。所有數據均以報告的綜合數據呈現。

With that, we are now ready for questions.

至此，我們現在準備好提問了。

(Operator Instructions) Your first question comes from the line of Brandon Nispel with KeyBanc Capital Markets.

（操作員說明）您的第一個問題來自 KeyBanc Capital Markets 的 Brandon Nispel。

Julie, a question for you. HSD penetration has now declined for, I think, 4 consecutive quarters. Can you maybe outline what your thoughts are in terms of the longer-term opportunity and how you plan to sort of address getting subscribers back going through new pricing packaging promotional offers?

朱莉，問你一個問題。我認為 HSD 滲透率現已連續 4 個季度下降。您能否概述一下您對長期機會的想法以及您計劃如何解決讓訂閱者重新接受新的定價包裝促銷優惠的問題？

And then hopefully, you could -- I was hoping you could talk a little bit more about how the quarter progressed from an HSD net add perspective. You mentioned the promotional offer around 100 megs for $25. Could you sort of talk about what led to that decision? And if you care to opine on how 4Q is trending, that would be great.

然後希望您能——我希望您能從 HSD 淨增加的角度多談談本季的進展。您提到了 100 兆左右 25 美元的促銷優惠。您能談談是什麼導致了這個決定嗎？如果您願意對第四季度的趨勢發表意見，那就太好了。

You got it, Brandon. So I can't comment on how others track their homes passed, but we are incredibly fastidious about it. And so as homes passed goes up, even if we keep our subscribers the same or grow slightly, the penetration will drop. And the homes passed database gets updated when we have new build extensions, for example, or if we have edge out opportunities, and you can imagine in those edge out areas that the homes come on or are put into the database and the billing platform way before they have the opportunity to be sold. So over time, I would expect to see the penetration from that issue resolve itself.

你明白了，布蘭登。所以我無法評論其他人如何追蹤他們的家經過，但我們對此非常挑剔。因此，隨著通過量的增加，即使我們保持訂閱者數量不變或略有增長，滲透率也會下降。例如，當我們有新的構建擴展時，或者如果我們有邊緣機會，您可以想像在這些邊緣區域中，房屋出現或放入數據庫和計費平台的方式，房屋通過的數據庫就會更新在他們有機會出售之前。因此，隨著時間的推移，我希望看到問題的滲透會自行解決。

In terms of what we see as a long-term opportunity for penetration growth, we think there is an abundant runway for us to grow penetration, and we are working on that with vigor. You asked, I think, about commentary around new growth, and I think about the work that we've done in the past, say, 2.5 months, specifically, where we are just crazily focused on fiercely competing, I mean fiercely, approaching the entire footprint on a market segmentation basis, meaning that we'll break apart different markets and customer types within those markets as well and address them very -- in a very tailored manner. And we're just, I guess, in short, realigning ourselves around growth.

就我們所認為的滲透率成長的長期機會而言，我們認為我們有充足的跑道來提高滲透率，並且我們正在積極努力。我想，你問的是關於新增長的評論，我想到了我們過去所做的工作，比如說，2.5 個月，具體來說，我們只是瘋狂地專注於激烈的競爭，我的意思是激烈地接近在市場細分的基礎上覆蓋整個足跡，這意味著我們將分解不同的市場和這些市場中的客戶類型，並以非常客製化的方式解決它們。簡而言之，我想我們只是圍繞著成長重新調整自己。

We've talked in recent quarters about realigning ARPU and growth. And obviously, those are the 2 important levers. And right now, we are focused on the growth part, the growth in units. As far as the third quarter, it was -- there was an acceleration as we got closer to the end of the quarter and into the fourth quarter in connects, and I attribute that to us being willing to experiment and be very agile and try different tactics, and those are bearing fruit. And so I feel quite positive about our fourth quarter.

最近幾季我們討論了重新調整 ARPU 和成長的問題。顯然，這是兩個重要的槓桿。現在，我們專注於成長部分，即單位的成長。就第三季度而言，隨著我們接近季度末和進入第四季度，連接出現了加速，我將其歸因於我們願意進行實驗並且非常敏捷並嘗試不同的方法策略，這些策略正在取得成果。因此，我對第四季的情況非常樂觀。

Your next question comes from the line of Phil Cusick with JPMorgan.

你的下一個問題來自菲爾·庫西克與摩根大通的對話。

This is Nik on for Phil. I know you guys have touched on how fixed wireless hasn't really been a churn issue, but I was hoping you could touch on the kind of churn you may see from fiber and fiber overbuilders entering your markets. And to that extent, when you have visibility into an overbuilder in your market, how do you evaluate what your competitive response might be, whether that's promotions more on the gross add front or maybe something more targeted for retention of the base?

這是尼克為菲爾代言的。我知道你們已經談到固定無線如何並不是一個真正的客戶流失問題，但我希望你們能談談光纖和光纖過度建設者進入你的市場可能會帶來的客戶流失。就這個程度而言，當您了解市場中的過度建設者時，您如何評估您的競爭反應可能是什麼，是更多地針對總增加額進行促銷，還是更有針對性地保留基礎？

So I think your first question was overall about churn from competition regardless of where it comes from. We do track competition by competitors. So our folks code in the reason why someone would choose to leave us. So we have that on a granular level to the extent that human beings don't make errors.

所以我認為你的第一個問題總體上是關於競爭造成的流失，無論它來自哪裡。我們追蹤競爭對手的競爭情況。所以我們的人會寫下為什麼有人選擇離開我們的原因。因此，我們在粒度層面上做到了人類不會犯錯的程度。

I'm not sure what your question was specifically about fiber churn, but let me spin to the next part, and then you can clarify and we can go back at it. But how do we evaluate the response in a holistic way? I mean it depends on how big the market is, where it's situated, what the economy is like in that marketplace. Who's the overbuilder? How are they financed? What are their pricing points? What do our nodes look like in those areas?

我不確定您的問題具體是關於光纖攪拌的，但讓我轉到下一部分，然後您可以澄清，我們可以回去討論。但我們如何全面評估反應呢？我的意思是，這取決於市場有多大、位於哪裡、該市場的經濟狀況如何。誰是過度建設者？他們如何融資？他們的定價點是什麼？我們的節點在這些區域是什麼樣子的呢？

And we have an amazing network, but that isn't to say that some of our markets aren't in the process of being rebuilt -- upgraded would be a more correct term. So it's a holistic walk around the whole issue sort of evaluation.

我們擁有一個令人驚嘆的網絡，但這並不是說我們的一些市場沒有處於重建過程中——更正確的術語是「升級」。因此，這是圍繞整個問題進行整體評估。

And what was -- what do you need to hear...

那是什麼——你需要聽到什麼...

Yes. I mean just obviously, you guys say, with fixed wireless, you're not seeing much churn in your base. But in terms of fiber competition, are you seeing material churn when an overbuilder enters a market? And how -- are you worried about trying to promote and maybe lock down and retain your sub base in those markets?

是的。我的意思是，很明顯，你們說，有了固定無線網絡，您的基地就不會出現太多的流失。但就纖維競爭而言，當過度建設者進入市場時，您是否看到材料流失？您是否擔心試圖促進甚至鎖定並保留您在這些市場的子基地？

Yes. Okay. I got you. I got you. Thanks for that clarification. Okay. So let's just start with overall churn is at prepandemic lows. So our churn is very low. Now I'm talking about the entire MSO, and that is inclusive of markets that are competitive. So that just tells you -- I mean, common sense would tell you, in a competitive market and some like highly competitive markets, that you would lose customers. Yet overall, our churn is incredibly low. So just starting from that point.

是的。好的。我接到你了。我接到你了。感謝您的澄清。好的。因此，我們先從整體流失率處於疫情大流行前的低點開始。所以我們的客戶流失率非常低。現在我談論的是整個 MSO，其中包括競爭性市場。所以這只是告訴你——我的意思是，常識會告訴你，在競爭激烈的市場和一些競爭激烈的市場中，你會失去客戶。但整體而言，我們的客戶流失率非常低。所以就從這一點開始。

In competitive markets, obviously, people are enamored with choice. I personally have called customers that have left us for other providers and talked to them and said, I am not trying to sell you. I simply want your input. Why did you leave us? And what could we have done differently? And honestly, at least in that small sample, it was really about a choice, like trying something different. Hey, haven't had problems. I don't think my price is going to be lower, but I thought I would try this out because there was a direct salesperson on my doorstep.

顯然，在競爭激烈的市場中，人們熱衷於選擇。我親自給那些離開我們而轉向其他提供者的客戶打電話，並與他們交談並說，我並不是想賣給你。我只是想要你的意見。為什麼離開我們？我們可以採取哪些不同的做法？老實說，至少在那個小樣本中，這實際上是一個選擇，就像嘗試不同的東西。嘿嘿，沒遇到問題。我不認為我的價格會更低，但我想我會嘗試一下，因為我家門口有一個直銷員。

Typically, we have had competition for, honestly, decades. I've been with the company over 24 years, and I can think of one marketplace that had a fiber overbuilder come in and a traditional HFC overbuilder come in, and we lost customers to begin with. That lasted for a period of time, and then things normalized and we began to grow again. I don't know if that's what it's going to look like in the future or not. But certainly, that has been our experience in the past.

老實說，我們通常已經進行了數十年的競爭。我在這家公司工作了 24 年多了，我可以想像一個市場，有光纖過度建設者和傳統的 HFC 過度建設者進來，但我們一開始就失去了客戶。這種情況持續了一段時間，然後一切恢復正常，我們又開始成長。我不知道未來是否會是這樣。但當然，這是我們過去的經驗。

Got it. And if I could just push my luck here, anything you can give us on maybe the magnitude of net adds in the quarter from the 100 meg offer?

知道了。如果我可以在這裡碰碰運氣，您能給我們提供什麼信息，也許是本季度 100 兆瓦報價的淨增加幅度？

Net adds, no. But I can tell you that the 100 meg offer was an initiative aimed at value-conscious customers. While we don't lose our existing customers by and large to fixed wireless broadband, they are targeting their customers and bundling them at a low price. So we went to market with this. Our connects were robust and the majority, far and away, 2/3 of the customers connected at higher speed, higher priced tiers than that 100 megs for $25. So it was basically a call to action, the phones rang and then people elected into higher tiers.

淨添加，沒有。但我可以告訴你，100兆的優惠是針對注重價值的顧客的舉措。雖然我們的現有客戶總體上不會因為固定無線寬頻而流失，但他們正在瞄準他們的客戶並以低價捆綁他們。所以我們帶著這個進入市場。我們的連線非常強大，大多數（遠方的）2/3 的客戶以比 100 兆速率更高的速度、更高的價格（​​25 美元）連線。所以這基本上是一個行動號召，電話響了，然後人們選擇進入更高的層級。

Your next question comes from the line of Greg Williams with TD Cowen.

你的下一個問題來自 Greg Williams 和 TD Cowen 的對話。

Julie, you noted that wireline competition is increasing. I was hoping you'd put a finer point on it. In the past, you noted 25% of your footprint had a wireline 1 gig offer. If I could flip that to fixed wireless as well, I think you said 35%, which includes fixed wireless as a footprint -- was in your footprint. What are those numbers today, as an update to that? And where do you think that could ultimately end up? I think about Verizon launching their BC category, C-band into rural areas, and it could be in your markets.

朱莉，您注意到有線競爭正在加劇。我希望你能提出更詳細的觀點。過去，您注意到 25% 的足跡提供了有線 1 演出服務。如果我也可以將其轉向固定無線，我認為您所說的 35%（其中包括作為足蹟的固定無線）已在您的足跡中。作為更新，今天這些數字是多少？您認為這最終會怎樣？我考慮 Verizon 向農村地區推出他們的 BC 類別、C 頻段，它可能會進入您的市場。

And then second question is just on the presentation success you're having by going downstream and the $25 offer and how you can sort of justify that tactically. I think as you said on your scripted remarks that you can now offer premium service to the premium customer, so could you hike up sort of prices on the high end to help justify the business case in the low end? Just helping us understand the ARPU impact overall of these offers.

第二個問題是關於你透過下游和 25 美元的報價所獲得的演示成功，以及你如何在戰術上證明這一點的合理性。我認為正如您在腳本演講中所說，您現在可以向優質客戶提供優質服務，那麼您是否可以提高高端產品的價格，以幫助證明低端產品的商業案例是合理的？只是幫助我們了解這些優惠的 ARPU 整體影響。

So related to wireline competition, the majority of our markets do not have a wired competitor that can offer 100 megs or more. The majority. Fixed wireless, T-Mo -- our overlap with T-Mo right now is 36% of the marketplace. Verizon is, I think 16%. I'd have to look it up real quick. Yes, 12%. 12% right now for them. Our success in what you call downstream and I would call value-conscious customers, I think the 100 meg offer is an example of that. And I think that we're going to be trying other things as well. But we will only do so to the extent that what we're offering is a profitable package. We're focused on delivering profitability over the long term, not doing something reactive in the short term that would hurt us for the long term.

因此，與有線競爭相關，我們的大多數市場都沒有能夠提供 100 兆或以上速率的有線競爭對手。大多數。固定無線、T-Mo——我們目前與 T-Mo 的市佔率重疊為 36%。我認為 Verizon 是 16%。我得趕緊查一下。是的，12%。現在對他們來說是12%。我們在你們所謂的下游（我稱之為價值意識型客戶）方面取得了成功，我認為 100 兆的報價就是一個例子。我認為我們還將嘗試其他事情。但只有當我們提供的是有利可圖的套餐時，我們才會這樣做。我們專注於實現長期獲利，而不是在短期內做一些會損害我們長期利益的被動反應。

We do -- the marketplace is showing really interesting dichotomies, I think, in that we see definite price elasticity on the higher-end products through research and actually selling them. I mean they just keep buying more and more, and we had a rate adjustment this year and they're still buying more and there's no churn. But then again, you have this really large response to the 100 meg $25 offer. And it's almost like there's a polarization on both sides. So again, I think we have to be surgical, I think we have to, call it, personalized broadband. I mean we have to take the market segmentation approach that I talked about in order to really drive new growth.

我認為，市場正在呈現出非常有趣的二分法，因為我們透過研究和實際銷售看到了高端產品的明確價格彈性。我的意思是，他們只是繼續購買越來越多的東西，而且我們今年進行了利率調整，他們仍在購買更多東西，而且沒有流失。但話說回來，你對 100 兆美元 25 美元的報價反應非常大。雙方幾乎都存在兩極化。再說一次，我認為我們必須進行外科手術，我認為我們必須稱之為個人化寬頻。我的意思是，我們必須採取我談到的市場區隔方法，才能真正推動新的成長。

Your next question comes from the line of Frank Louthan with Raymond James.

你的下一個問題來自弗蘭克·勞森（Frank Louthan）和雷蒙·詹姆斯（Raymond James）的對話。

Great. And maybe I missed this in the call, but the $25 offer, when did that start in the quarter? And is that kind of the way you'll be able to get to positive subs for the year? And then can you give us a little color on the nature of the homes that you're passing? You're adding quite a few each quarter. Are these competitive areas? Are they just kind of filling in holes in your footprint? And what's your expectation for penetration in those homes longer term? Can those areas you're targeting get better penetration than your base? Or a little lower? How should we think about it?

偉大的。也許我在電話中錯過了這一點，但是 25 美元的報價是在本季度什麼時候開始的？這是你今年能夠獲得積極替身的方式嗎？然後你能為我們介紹一下你所經過的房屋的性質嗎？每個季度你都會增加很多。這些是競爭領域嗎？它們只是填補你足跡上的漏洞嗎？您對這些家庭的長期滲透率有何期望？您所瞄準的那些區域能否比您的基地獲得更好的滲透？還是低一點？我們該如何思考呢？

Yes. That's a good question, Frank. So the $25 offer started at the beginning of October. It was a promotion -- September? I'm trying to think. Okay, September. Sorry, I don't -- we're in November now. I'm all off. I can't keep my time straight since COVID. I apologize. So beginning of September. It was supposed to end at the end of September, but we had literally -- like we were overwhelmed, our phones were ringing off the hook. So -- and we didn't see any detriment to that point. In other words, people weren't buying the $25 offer, so that wasn't a concern. And from what we saw, they weren't churning. So we extended it through the end of October and then it sunsetted. So that promo is gone and we're back to regular pricing. I don't -- that isn't a one-trick pony to ride in order to get growth, I don't think. It was just an example that we could draw attention by flagging a low price in the marketplace.

是的。這是個好問題，弗蘭克。所以25美元的優惠是從10月初開始的。這是一場促銷——九月？我正在努力思考。好的，九月。抱歉，我不知道──現在已經是十一月了。我都走了自從新冠疫情發生以來，我無法按時安排時間。我道歉。所以九月初。它本來應該在九月底結束，但我們確實——就像我們不知所措一樣，我們的電話響個不停。所以——我們沒有看到對這一點有任何損害。換句話說，人們不會購買 25 美元的報價，所以這不是一個問題。從我們所看到的來看，他們並沒有攪拌。所以我們把它延長到十月底，然後就日落了。所以促銷活動已經結束，我們又回到正常定價了。我不認為——這不是一匹為了獲得成長而騎著一招的小馬，我不認為。這只是一個例子，我們可以透過在市場上標記低價來吸引註意力。

And in terms of our homes passed, it is -- we have -- not all of our markets because, boy, that sure would be nice, but a subset of our markets that have new build extensions in them. Those are starting to slow down a teeny bit with the economy and the high interest rates, but -- so new builds, as part of that, what I call new build. Market expansion, call it edge out, is another piece of that, where we have -- if we can service an area that has a competitor that isn't taking good care of customers and community, you could read that to mean they're charging really high prices or their services aren't reliable, and we can service them off of an existing system site ahead and we will overbuild those areas. So that is what those homes passed reflect.

就我們的房屋而言，我們擁有的不是我們所有的市場，因為這肯定會很好，而是我們市場的一部分，其中有新的建築擴建。由於經濟和高利率，這些開始稍微放緩，但是——所以新建築，作為其中的一部分，我稱之為新建築。市場擴張，稱之為邊緣化，是我們所擁有的另一部分——如果我們能夠為一個沒有很好地照顧客戶和社區的競爭對手提供服務的領域，你可以將其理解為意味著他們正在收取非常高的價格或他們的服務不可靠，我們可以提前從現有的系統網站為他們提供服務，我們將過度建造這些區域。這就是那些經過的房子所反映的情況。

And just a note on high prices because I mentioned it. Just because our ARPU is high, does not mean that our prices to our customers are high. Those -- that ARPU is driven by customer choice far and away. Like gig sell-in of 37%, for example, or add-ons that they are choosing to take. Our base rate is a value. I would suggest that anyone living in a metropolitan area would not be able to get our pricing. What do I expect the penetration to be in those homes passed? I expect it to be -- in a market expansion scenario, to be at least 40%. And in our new build areas, I would expect it to near the penetration of that particular system, which varies widely.

只是關於高價格的說明，因為我提到了這一點。僅僅因為我們的 ARPU 高，並不代表我們提供給客戶的價格就高。 ARPU 很大程度上是由客戶選擇驅動的。例如，演出銷售率為 37%，或他們選擇接受附加服務。我們的基本費率是一個值。我建議居住在大都會區的任何人都無法獲得我們的定價。我預計這些房屋的滲透率是多少？我預計在市場擴張的情況下，該比例至少為 40%。在我們的新建築區域，我預計它將接近該特定係統的滲透率，該系統差異很大。

Your next question comes from the line of Craig Moffett with MoffettNathanson.

您的下一個問題來自 Craig Moffett 和 MoffettNathanson。

Two quick questions, if I could. First, I wonder if you could just reflect on wireless again. I know you've said that it was 2 quarters ago, that it wasn't part of your plan. But it's been such a large part of what the other cable operators are doing, I'm wondering if you're kind of still interested in at least exploring wireless options.

如果可以的話，兩個簡單的問題。首先，我想知道您是否可以再次思考無線技術。我知道你說過那是兩個季度前的事，這不是你計畫的一部分。但這是其他有線運營商正在做的事情的很大一部分，我想知道您是否仍然對至少探索無線選項感興趣。

And then second, I wonder if you could just talk about the trajectory of capital intensity. As you think about DOCSIS 4 and plant upgrades, how low could capital intensity go? Or how much further could it come down?

其次，我想知道您是否可以談談資本密集度的軌跡。當您考慮 DOCSIS 4 和工廠升級時，資本密集度可以降到多低？或者說還能下降多少？

Craig, it's Todd. On the wireless side, we've talked about this before. I don't think anybody would disagree that the 2 primary connectivity mediums for consumers will be very reliable, fixed broadband that we provide, and then very reliable wireless mobile connectivity. We do evaluate it. There's plenty of folks in the space that have launched that we monitor very closely, that we evaluate both the performance as well as -- in the wireless ads as well as what that would potentially do to improve on the data side of the equation. And those are very important elements of that.

克雷格，我是托德。在無線方面，我們之前已經討論過這一點。我認為沒有人會不同意消費者的兩個主要連接媒介將是我們提供的非常可靠的固定寬頻，以及非常可靠的無線行動連線。我們確實對其進行了評估。該領域有很多人推出了我們非常密切監視的產品，我們評估無線廣告的表現以及這可能會改善數據方面的效果。這些都是其中非常重要的要素。

As we've also said in the past, important elements of customer satisfaction and how we want our customer experience to be is very, very reliable connectivity. And we also continue to monitor how that reliability will improve from a wireless and a mobile perspective in our markets, because we do feel like that's an extremely important catalyst as we continue to look at that. But nothing right now that says economically or from a customer demand perspective that, that's a product we have to have.

正如我們過去所說，客戶滿意度以及我們希望客戶體驗如何的重要因素是非常非常可靠的連結。我們也繼續從市場的無線和移動角度來監控可靠性將如何提高，因為我們確實覺得這是一個極其重要的催化劑，因為我們繼續關注這一點。但目前還沒有任何證據表明，從經濟角度或從客戶需求的角度來看，這是我們必須擁有的產品。

From a capital intensity perspective, it's a sequential quarter of decline in CapEx. We've talked about some of the shorter-term elements associated with that, which was our working capital optimization strategies that we can continue to execute upon. Some of the slower builds that gives us a little bit more efficiency there, and some of the integration and upgrade investments that we've been making that can start to taper a little bit. But longer term, we've talked about our capital intensity as a percentage of our EBITDA being in that mid- to high 30% area.

從資本密集度的角度來看，資本支出連續一個季度下降。我們已經討論了與此相關的一些短期因素，這是我們可以繼續執行的營運資本優化策略。一些較慢的建置可以提高我們的效率，而我們一直在進行的一些整合和升級投資可能會開始逐漸減少。但從長遠來看，我們已經討論了我們的資本密集度佔 EBITDA 的百分比，處於中高 30% 的區域。

Your next question comes from the line of Steven Cahall with Wells Fargo.

你的下一個問題來自富國銀行的史蒂文‧卡霍爾 (Steven Cahall)。

Julie, thanks for all the commentary on how you're thinking about balancing ARPU growth and subscriber growth. I think that's the biggest one that we're debating as well. I was wondering if we could go a little deeper into it about just how you're looking to deploy some of the tactics that you talked about. So we saw the new, more inexpensive program at the end of Q3. Last year, net adds started to kind of flip negative in Q4. It was unexpected sequentially from Q3. As you deployed these new tactics, do you think you could start to get back to positive net add growth by the fourth quarter, or we should be thinking about that as a little more of just your long-term trend and long-term strategy?

Julie，感謝您對如何考慮平衡 ARPU 成長和用戶成長的所有評論。我認為這也是我們正在爭論的最大的一個。我想知道我們是否可以更深入地了解您希望如何部署您談到的一些策略。因此，我們在第三季末看到了新的、更便宜的計劃。去年第四季淨增加開始出現負數。從Q3起依序是出乎意料的。當您部署這些新策略時，您是否認為您可以在第四季度開始恢復正的淨增加成長，或者我們應該將其視為您的長期趨勢和長期策略？

And then secondly, the ACP program is having some political debate around it. I'm just wondering if you can shed any light as to if you have any material customer exposure to ACP, and if you do, if you have some contingency plans for ways to keep engaged with those customers should it change.

其次，ACP 計劃正在圍繞它進行一些政治辯論。我只是想知道您是否可以透露您是否有任何重大客戶接觸 ACP，如果有的話，您是否有一些應急計劃來在情況發生變化時與這些客戶保持聯繫。

Yes. So the end of the third quarter was a success in my mind and that continues. I expect to grow in the fourth quarter, period. ACP, we only have 35,000 customers, given we have over 1 million customers, teeny tiny. Teeny tiny. And those customers were customers of ours before. They just start using the $35 or $75 of their own Tribal lands to supplement what they're paying for. So even if it goes away, our number of customers is minimal. And I think they'll still be customers. Maybe they'll downgrade, but I think they'll still be customers.

是的。所以在我看來，第三季末是成功的，而且這種情況還在繼續。我預計第四季會出現成長。 ACP，考慮到我們有超過 100 萬客戶，我們只有 35,000 個客戶，很小。很小。而那些客戶以前也是我們的客戶。他們只是開始使用自己部落土地的 35 美元或 75 美元來補充他們所支付的費用。因此，即使它消失了，我們的客戶數量也很少。我認為他們仍然會是客戶。也許他們會降級，但我認為他們仍然會是客戶。

Steve, I would add, there's maybe always political jockeying around things like that, especially as we head into an election year. I would be pretty surprised if broadband for all demographics and for all customers is something that gets a meaningful amount of adjustment to it. Maybe some tweaks here and there. But we do not feel like we have a lot of exposure as it relates to the repayment of that, with that very small subset that Julie alluded to.

史蒂夫，我想補充一點，可能總是圍繞著這樣的事情進行政治角逐，尤其是在我們進入選舉年的時候。如果針對所有人群和所有客戶的寬頻都能夠得到有意義的調整，我會感到非常驚訝。也許這裡和那裡進行一些調整。但我們不覺得我們有很多風險，因為這與償還有關，朱莉提到的那一小部分。

Thank you. Ladies and gentlemen, at this time, there are no further questions. I will now turn the call back over to Julie Laulis for closing remarks. Please go ahead.

謝謝。女士們、先生們，現在沒有其他問題了。現在，我將把電話轉回給朱莉·勞利斯（Julie Laulis），讓其致閉幕詞。請繼續。

Thank you, Eric. So as we wrap up, I just want to extend a heartfelt thank you to our Cable One associates. It is their commitment that really sets us apart in providing exceptional neighborly service. And additionally, for those that are interested, Todd and Jordan will represent Cable One at the upcoming Raymond James and Wolfe conferences this December in New York. We welcome the opportunity to engage with many of you there.

謝謝你，埃里克。在我們結束時，我只想向我們的 Cable One 員工表示衷心的感謝。正是他們的承諾真正使我們在提供卓越的鄰裡服務方面脫穎而出。此外，對於有興趣的人來說，托德和喬丹將代表 Cable One 出席今年 12 月在紐約舉行的雷蒙德詹姆斯和沃爾夫會議。我們很高興有機會與你們中的許多人接觸。

Thank you, everyone, for your time and attention today. We appreciate your continued support and interest in Cable One.

謝謝大家今天的時間和關注。我們感謝您對第一電纜的持續支持和關注。

Thank you. Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在您可以斷開線路了。