CIBL, Inc. Delivers Surprising Q1 EPS Surge, But Clouds Linger Over EBITDA

CIBL, Inc. (OTC Pink: CIBY), a niche broadband and communications provider serving northern New Hampshire, reported a stunning Q1 2025 GAAP EPS of $5.50, marking a 216% surge from its Q1 2024 loss of ($4.74). This dramatic turnaround, driven by higher service revenues and share buybacks, has sparked investor interest in this obscure micro-cap stock. However, the company’s operational EBITDA fell 12% to $125,000, raising questions about the sustainability of its financial gains.

The EPS Explosion: What’s Behind the Numbers?

CIBL’s Q1 results are a mixed bag. Revenue rose 12.2% year-over-year to $525,000, fueled by growth in broadband, VoIP, and end-user terminal services. The company’s focus on its core New Hampshire operations—including the iconic Omni Mount Washington Hotel and the Cog Railway—has paid off, with steady demand for high-speed internet in tourist-heavy areas.

But the EPS jump isn’t just about top-line growth. The company has been aggressively reducing its share count, buying back 586 shares in Q1 alone at an average price of $1,699. This brought total shares outstanding down to 11,680, a 12% reduction since its 2007 spin-off from LICT Corporation. With $20.7 million in cash, CIBL has the financial flexibility to continue this strategy, which directly boosts per-share metrics.

The Elephant in the Room: EBITDA Declines and Capital Spending

While the EPS headline is dazzling, the 12% drop in operational EBITDA to $125,000 is a red flag. The culprit? A 75% cut in capital expenditures to $24,000, down from $75,000 in Q1 2024. This suggests CIBL is prioritizing short-term profit over long-term infrastructure investments—a risky move in an industry where fiber upgrades are critical to maintaining service quality.

The company attributes the EBITDA pressure to reduced capitalized labor for infrastructure projects, but investors must ask: Can CIBL sustain revenue growth without reinvesting in its network? The answer could determine whether the EPS gains are a flash in the pan or a sign of enduring strength.

The Balance Sheet: A Fortress of Cash, But For How Long?

CIBL’s balance sheet remains its strongest suit. With $20.7 million in cash—or $1,774 per share—the company has one of the highest cash-to-share ratios in its sector. This liquidity provides a safety net for potential downturns but also raises strategic questions. The board is evaluating “strategic alternatives” to boost shareholder value, though specifics are vague.

Possible moves include:
1. Acquisitions: Expanding into adjacent markets in New England.
2. Dividend hikes: Rewarding shareholders with excess cash.
3. Further share buybacks: Continuing to shrink the float.

However, the lack of clarity on these plans leaves investors guessing.

The Bigger Picture: Full-Year Outlook and Risks

While Q1’s EPS is impressive, it’s just one quarter. CIBL’s 2024 full-year EPS was $11.38, meaning Q1 2025 represents roughly half of that annual figure. The company will need to maintain momentum in the remaining quarters to avoid a repeat of 2023’s volatility—when it reported a Q1 loss of ($4.74) but ended the year with a $22.90 EPS.

Key Risks to Monitor:

• Dependence on a small geographic market: Over 90% of revenue comes from northern New Hampshire, exposing CIBL to local economic downturns.
• High valuation: At a recent price of $1,632 per share, the stock trades at roughly 30x the Q1 EPS, a pricey multiple for a company with such narrow operations.
• Strategic uncertainty: Without clear plans for capital allocation, investors may lose patience.

Conclusion: A High-Reward, High-Risk Play

CIBL’s Q1 performance is undeniably strong, driven by disciplined capital management and a fortress balance sheet. The $5.50 EPS and $1,774 per-share liquidity make it an intriguing story for investors willing to tolerate risk. However, the EBITDA decline and lack of clarity on long-term strategy create significant hurdles.

The stock’s recent price of $1,632 reflects high expectations, but with $20.7 million in cash and a shrinking share count, the company has the tools to execute a turnaround. Investors should closely watch capital expenditures in 2025 and whether EBITDA stabilizes. For now, CIBL is a speculative bet on execution—with potential rewards for those who believe management can turn the EBITDA tide.

In short: CIBL’s Q1 EPS is a victory lap, but the real test lies ahead.