ADT Inc. (NYSE: ADT), the most trusted brand in smart home and
small business security, today announced it will be exiting its
residential solar business. The Company will remain focused on cash
flow generation and capital-efficient growth within its core
security and smart home business. As part of this continued focus,
ADT is also advancing its capital allocation strategy, including a
cash dividend increase and authorization of a new share repurchase
program.
“The decision to exit solar operations was made
after careful deliberation, and we expect this strategic action to
drive substantial operational and financial benefits to ADT,” said
ADT Chairman, President and CEO, Jim DeVries. “We want to
acknowledge and thank our employees, partners, and customers as we
work through this transition.”
Solar Business Update
Over the first nine months of 2023, ADT’s core
business exhibited strong performance, while the solar business
faced challenges, including operational difficulties and
macroeconomic headwinds causing deterioration of conditions
industrywide. As a result of these challenges, the Solar segment
generated an Adjusted EBITDA loss of $89 million during this
period. Following the previously announced restructuring of its
solar footprint and a detailed strategic review, ADT’s Board of
Directors has approved the exit of this segment, which may include
the transfer of components of the business to other parties.
The Company expects to incur certain one-time
exit charges and cash expenditures with potential offsets from
asset sales or reduced tax expenses. As previously disclosed, as of
September 30, 2023, the goodwill balance for the Solar reporting
unit was zero. At this time, the Company is still analyzing the
estimated net amount or range of amounts expected to be incurred in
connection with this plan.
Strong Cash Flowing Core Business Propelling Capital
Allocation Update
Supported by ADT’s confidence in the strong cash
flow generation of its core business, today the Company is also
announcing the following:
- Dividend
Increase – The Company’s Board of Directors has declared a
quarterly cash dividend of $0.055 per share, payable on April 4,
2024, to shareholders of record at the close of business on March
14, 2024. The quarterly dividend represents a 57% increase over the
previous quarterly dividend.
- Share Repurchase
Authorization – The Company’s Board of Directors has authorized a
$350 million share repurchase program. As the Company executes
share repurchases, the Board will periodically review the remaining
authorization as part of its capital allocation strategy.
- Balance Sheet
Fortification – Consistent with the plan from its third quarter
earnings announcement, on December 29, 2023, the Company repaid
$500 million of First Lien Senior Secured Notes due 2024,
completing an overall 2023 reduction of ADT’s total debt by
approximately $2 billion. Further, following two corporate rating
upgrades in 2023, the Company improved borrowing costs and extended
debt maturities and in 2024, will have only $150 million of
maturities and amortization payments. The Company remains focused
on achieving its targeted net leverage ratio of less than
3.0x.
- Core Investment
– On December 20, 2023, the Company closed on a strategic bulk
purchase of approximately 57,000 customer accounts for $89 million
cash with attractive returns. This portfolio of customers is
concentrated in a few key geographies, all of which align with
existing platforms, enabling strong economies of scale upon
integration. This transaction was not included in prior cash flow
guidance.
Fourth Quarter and Full Year 2023 Earnings Conference
Call
More details and an update on the business will
be provided when the Company releases its fourth quarter and full
year 2023 results on February 28, 2024. Following the release,
management will host a conference call at 10 a.m. ET to discuss the
financial results and lead a question-and-answer session.
Participants may listen to a live webcast
through the investor relations website at investor.adt.com. A
replay of the webcast will be available on the website within 24
hours of the live event. Alternatively, participants may listen to
the live call by dialing 1-404-975-4839 (domestic) or
1-833-470-1428 (international) and providing the access code
533961. An audio replay will be available for two weeks following
the call and can be accessed by dialing 1-866-813-9403 (domestic)
or 1-929-458-6194 (international) and providing the access code
375946.
About ADT Inc.
ADT provides safe, smart and sustainable
solutions for people, homes and small businesses. Through
innovative offerings, unrivaled safety and a premium customer
experience, all delivered by the largest network of smart home
security professionals in the U.S., we empower people to protect
and connect to what matters most. For more information, visit
www.adt.com.
ADT ContactsInvestor Relations:
investorrelations@adt.com; 888-238-8525Media Relations:
media@adt.com
Forward-Looking Statements
ADT has made statements in this press release
that are forward-looking and therefore subject to risks and
uncertainties, including those described below. All statements,
other than statements of historical fact, included in this document
are, or could be, “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 and the
applicable rules and regulations of the Securities and Exchange
Commission (the “SEC”) and are made in reliance on the safe harbor
protections provided thereunder. These forward-looking statements
relate to, among other things, the Company exiting the residential
solar business and the expected costs and benefits of such exit;
the repurchase of shares of the Company’s common stock under the
authorized share repurchase program; the Company’s ability to
reduce debt or improve leverage ratios, or to achieve or maintain
its long-term leverage goals; the integration of the strategic bulk
purchase of customer accounts; any stated or implied outcomes with
regards to the foregoing; and other matters. Without limiting the
generality of the preceding sentences, any time the Company uses
the words “expects,” “intends,” “will,” “anticipates,” “believes,”
“confident,” “continue,” “propose,” “seeks,” “could,” “may,”
“should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,”
“targets,” “planned,” “projects,” and, in each case, their negative
or other various or comparable terminology, and similar
expressions, the Company intends to clearly express that the
information deals with possible future events and is
forward-looking in nature. However, the absence of these words or
similar expressions does not mean that a statement is not
forward-looking. These forward-looking statements are based on
management’s current beliefs and assumptions and on information
currently available to management. ADT cautions that these
statements are subject to risks and uncertainties, many of which
are outside of ADT’s control, and could cause future events or
results to be materially different from those stated or implied in
this press release, including among others, factors relating to
uncertainties as to any difficulties with respect to ADT’s planned
exit of the residential solar business, including expenses
associated with the separation of certain solar branches and
personnel; the effect of the announcement of ADT exiting the
residential solar business on ADT’s ability to retain and hire key
personnel and to maintain relationships with customers, suppliers
and other business partners; risks related to the possible
diversion of management’s attention from ADT’s core CSB business
operations as a result of ADT announcing its exit from the
residential solar business; uncertainties as to ADT’s ability and
the amount of time necessary to realize the expected benefits of
the planned exit from the residential solar business and the recent
strategic bulk purchase of customer accounts; activity in
repurchasing shares of ADT’s common stock under the authorized
share repurchase program; dividend rates or yields for any future
quarter; and risks that are described in the Company’s Amended
Annual Report, Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K, and other filings with the SEC, including the sections
titled “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” contained therein.
Any forward-looking statement made in this press release speaks
only as of the date on which it is made. ADT undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future
developments, or otherwise.
Non-GAAP Measures
The Company is not providing forward-looking
guidance for U.S. GAAP financial measures or a quantitative
reconciliation to the most directly comparable GAAP measures for
its forward-looking non-GAAP measures because the GAAP measures
cannot be reliably estimated and the reconciliations cannot be
performed without unreasonable effort due to their dependence on
future uncertainties and adjusting items that the Company cannot
reasonably predict at this time but which may be material.
Net Leverage Ratio is a non-GAAP measure. Net
Leverage Ratio is calculated as the ratio of net debt to last
twelve months (“LTM”) Adjusted EBITDA (discussed below). Net debt
is calculated as GAAP total debt excluding the Receivables
Facility, including capital leases, minus cash and cash
equivalents.
We define Adjusted EBITDA as GAAP income or loss
from continuing operations adjusted for (i) interest; (ii) taxes;
(iii) depreciation and amortization, including depreciation of
subscriber system assets and other fixed assets and amortization of
dealer and other intangible assets; (iv) amortization of deferred
costs and deferred revenue associated with subscriber acquisitions;
(v) share-based compensation expense; (vi) merger, restructuring,
integration, and other items such as separation costs; (vii) losses
on extinguishment of debt; (viii) radio conversion costs net of any
related incremental revenue earned; (ix) adjustments related to
acquisitions, such as contingent consideration and purchase
accounting adjustments, or dispositions; (x) impairment charges;
and (xi) other income/gain or expense/loss items such as changes in
fair value of certain financial instruments or financing and
consent fees.
ADT (NYSE:ADT)
過去 株価チャート
から 4 2024 まで 5 2024
ADT (NYSE:ADT)
過去 株価チャート
から 5 2023 まで 5 2024