ADT Inc. (NYSE: ADT), the most trusted brand in smart home and
small business security, today reported results for the third
quarter of 2024.
Financial highlights for the third quarter are
below with variances on a year-over-year basis unless otherwise
noted. Results of the former commercial and solar segments are
presented as discontinued operations, except for cash flow
measures.
- Total revenue
increased by 5% to $1.2 billion and end-of-period recurring
monthly revenue (RMR) increased 2% to $359 million ($4.3 billion on
an annualized basis)
- Strong customer
retention with gross revenue attrition of 12.8% and revenue payback
at 2.2 years
- GAAP income from
continuing operations of $132 million, or $0.14 per diluted share,
up $9 million
- Adjusted income
from continuing operations of $183 million, or $0.20 per
diluted share, up $39 million
- Adjusted EBITDA
from continuing operations of $659 million, up
$35 million
- Year to date net
cash provided by operating activities of $1.4 billion up 14%;
Adjusted Free Cash Flow (including interest rate swaps) of $520
million up 28%
“ADT delivered solid third quarter performance
resulting in a record-high recurring monthly revenue balance,
healthy customer retention, strong operating profitability, and
cash generation. Our successful performance reflects the dedication
of our employees to serve the needs of our customers,” said ADT
Chairman, President and CEO, Jim DeVries. “With our proprietary
ADT+ platform, and the recent launch of our Trusted Neighbor
features, we continue to empower our customers with the safety,
convenience, and peace of mind they expect from ADT. Closing out
the year, we are well positioned to achieve our 2024 commitments,
including significant cash flow growth while continuing to invest
in our future and return more capital to our shareholders.”
Business Highlights
- Trusted
Neighbor launch – ADT’s Trusted Neighbor offering is now available
for customers across the US. This new offering allows customers to
grant secure, temporary access to their homes through the ADT+ app,
enhancing security and convenience. Select customers can use the
Auto-Unlock feature to automatically verify a trusted individual,
enabled by deep integration of the ADT+ app, Google Nest Doorbell’s
Familiar Faces technology, and Yale locks.
- ADT Remote
Assistance – The ADT Remote Assistance program continues to
generate high customer satisfaction at a lower cost while also
eliminating thousands of vehicle trips each day. In the third
quarter 2024, over 50% of ADT service requests were virtual.
- ADT Home
Security Program for State Farm – In October, ADT expanded its Home
Security Program for State Farm, introducing a new solution in
Maryland and Michigan that detects water leaks in common household
areas. Building on learnings and customer feedback from earlier
pilot launches, ADT continues to develop tailored packages focused
on proactive risk detection and strong customer protection.
- Strategic Bulk
Account Purchase – The Company closed on a strategic bulk purchase
of approximately 49,000 customer accounts, acquired from the same
party as the December 2023 transaction, for $81 million cash with
attractive projected 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.
- ADT+ app scores
high rating – The ADT+ app has received consistently high ratings,
averaging 4.7 stars across thousands of reviews in the Apple App
Store and Google Play store, making it the highest-rated app in the
home security and smart home category.
- ADT’s 150th
birthday – In August, ADT proudly celebrated its “150th birthday,”
a significant milestone marking the Company’s 150 years of
innovating to keep customers safe. Employees celebrated by ringing
the opening bell at the New York Stock Exchange and volunteering
with The Birthday Project, a nonprofit organization that hosts
birthday celebrations for unhoused youth.
- Hurricane
Relief Donations – In October, ADT’s Safe Places program donated to
local and national organizations such as the American Red Cross,
Team Rubicon, and a North Carolina food bank to support relief and
recovery efforts in areas affected by recent hurricanes.
- ADT recognized
as top workplace for people with disabilities – Newsweek named ADT
one of America’s Greatest Workplaces for People with Disabilities.
This accolade highlights ADT’s commitment to inclusivity with
robust accommodations, comprehensive benefits, accessible work
environments, and meaningful career advancement opportunities for
employees with disabilities.
Results of Continuing Operations
(1)(2)
(in millions, except revenue payback, attrition, and per share
data) |
|
Three Months Ended September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
GAAP |
Monitoring and related services |
|
$ |
1,078 |
|
|
$ |
1,053 |
|
|
$ |
24 |
|
|
2 |
% |
Security installation, product, and other |
|
|
166 |
|
|
|
126 |
|
|
|
40 |
|
|
32 |
% |
Total revenue |
|
$ |
1,244 |
|
|
$ |
1,180 |
|
|
$ |
64 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
132 |
|
|
$ |
123 |
|
|
$ |
9 |
|
|
7 |
% |
Income (loss) from continuing operations per share - diluted |
|
$ |
0.14 |
|
|
$ |
0.13 |
|
|
$ |
0.01 |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
Net cash provided by (used in): |
|
|
|
|
|
|
|
|
Operating activities |
|
$ |
498 |
|
|
$ |
446 |
|
|
$ |
52 |
|
|
12 |
% |
Investing activities |
|
$ |
(402 |
) |
|
$ |
(333 |
) |
|
$ |
(68 |
) |
|
(20)% |
Financing activities |
|
$ |
(41 |
) |
|
$ |
(18 |
) |
|
$ |
(23 |
) |
|
(131)% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures |
Adjusted EBITDA from continuing operations |
|
$ |
659 |
|
|
$ |
623 |
|
|
$ |
35 |
|
|
6 |
% |
Adjusted Income (Loss) from continuing operations |
|
$ |
183 |
|
|
$ |
144 |
|
|
$ |
39 |
|
|
27 |
% |
Adjusted Diluted Income (Loss) per share from continuing
operations |
|
$ |
0.20 |
|
|
$ |
0.16 |
|
|
$ |
0.04 |
|
|
25 |
% |
Adjusted Free Cash Flow (including interest rate swaps) |
|
$ |
158 |
|
|
$ |
171 |
|
|
$ |
(13 |
) |
|
(7)% |
|
|
|
|
|
|
|
|
|
|
|
Other Measures |
Trailing twelve-month revenue payback |
|
2.2 years |
|
2.0 years |
|
0.2 years |
|
10 |
% |
Trailing twelve-month gross customer revenue attrition |
|
|
12.8 |
% |
|
|
12.9 |
% |
|
(10) bps |
|
N/A |
RMR |
|
$ |
359 |
|
|
$ |
350 |
|
|
$ |
8 |
|
|
2 |
% |
Total revenue was $1,244 million for the
third quarter, up 5%. Monitoring and related services (M&S)
revenue growth was primarily driven by an increase in average
prices. Security installation, product, and other revenue increased
primarily due to higher volume of outright sales to new customers
and higher amortization of deferred subscriber acquisition revenue
under the Company-owned sales model.
Income from continuing operations was
$132 million, or $0.14 per diluted share, up $9 million.
This was primarily attributable to continued growth in revenues and
associated margins including cost efficiencies, partially offset by
technology investments and higher net interest expense.
Adjusted income from continuing operations was
$183 million, or $0.20 per diluted share, up $39 million,
driven by the same factors noted above excluding the negative
impact of interest rate swaps of $54 million.
Adjusted EBITDA was $659 million, up
$35 million primarily attributable to continued growth in
M&S revenues and associated margins including cost
efficiencies, partially offset by technology investments.
Balance Sheet and Cash Flow
Net cash provided by operating activities during
the third quarter was $498 million, up $52 million or 12%,
primarily driven by lower cash interest resulting from debt
reduction and improved operating performance, partially offset by
the net results of the commercial and solar businesses. Adjusted
Free Cash Flow (including interest rate swaps) decreased by $13
million, which included a strategic bulk account purchase of $81
million during the quarter, in addition to the drivers above.
The Company returned $50 million to shareholders
via dividends in the third quarter.
Total cash and cash equivalents were $95 million
and no amounts were outstanding under the Company’s First Lien
Revolving Credit Facility at the end of the quarter.
In October, the Company amended and restated its
First Lien Credit Agreement with respect to the First Lien
Revolving Credit Facility, which extended the maturity date to
October 2029, subject to certain conditions, and obtained an
additional $225 million of commitments. The new facility
reduces interest rates on drawn amounts by 85 basis points and
commitment fees by 20 basis points.
As of Oct. 24, 2024, approximately $225 million
remains available for future share repurchases under the Share
Repurchase Plan, net of $32 million of repurchases in October.
2024 Financial Outlook
Based on performance through the end of the
third quarter, the Company is tightening its 2024 financial
guidance within prior guidance ranges.
(in millions, except per share data) |
|
Prior Guidance |
Updated Guidance |
Total Revenue |
|
$4,800 - $5,000 |
$4,850 - $4,950 |
Adjusted EBITDA |
|
$2,525 - $2,625 |
$2,550 - $2,600 |
Adjusted EPS |
|
$0.65 - $0.75 |
$0.70 - $0.75 |
Adjusted Free Cash Flow (including interest rate swaps) |
|
$700 - $800 |
$725 - $775 |
The Company is not providing forward-looking guidance for U.S. GAAP
financial measures other than Total Revenue or a quantitative
reconciliation to the most directly comparable GAAP measure for its
non-GAAP financial guidance shown above 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. Please
see "Non-GAAP Measures" for additional information. |
Total Revenue and Adjusted EBITDA reflect the results of the former
CSB segment. GAAP cash flows include results of Solar discontinued
operations. Adjusted Free Cash Flow excludes amounts related to the
exit from the solar business, consistent with the definition of
this measure. Beginning in the third quarter of 2024, all cash
flows attributable to activities of the solar business are excluded
from Adjusted Free Cash Flow as the business is substantially wound
down. |
Dividend Declaration
Effective Oct. 24, 2024, the Company’s Board of
Directors declared a cash dividend of $0.055 per share to holders
of the Company’s common stock and Class B common stock of record as
of Dec. 12, 2024. This dividend will be paid on Jan. 9, 2025.
_____________________
(1 |
) |
All variances are year-over-year unless otherwise noted. Adjusted
EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted
Free Cash Flow (including interest rate swaps), Adjusted Income
(Loss), Adjusted Diluted Income (Loss) per share (or, Adjusted
EPS), Net Debt, and Net Leverage Ratio are non-GAAP measures. Refer
to the “Non-GAAP Measures” section for the definitions of the terms
and reconciliations to the most comparable GAAP measures included
herein. The operating metrics such as Gross Customer Revenue
Attrition, Unit Count, RMR, Gross RMR Additions, and Revenue
Payback are approximated as there may be variations to reported
results in each period due to certain adjustments the Company might
make in connection with the integration over several periods of
acquired companies that calculated these metrics differently, or
otherwise, including periodic reassessments and refinements in the
ordinary course of business. These refinements, for example, may
include changes due to systems conversion or historical methodology
differences in legacy systems. Results of the commercial and solar
businesses are presented as discontinued operations. Except for
cash flow measures, and unless otherwise noted, amounts herein have
been recast to reflect the results of the Company’s continuing
operations. |
(2 |
) |
Amounts may not sum due to rounding. |
Conference Call
As previously announced, management will host a
conference call at 10 a.m. ET today to discuss the Company’s third
quarter 2024 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 1-800-715-9871 (domestic) or 1-646-307-1963
(international), and providing the access code 4948265. An audio
replay will be available for two weeks following the call, and can
be accessed by dialing 1-800-770-2030 (domestic) or 1-609-800-9909
(international), and providing the access code 4948265.
A slide presentation highlighting the Company’s
results will also be available on the Investor Relations section of
the Company’s website. From time to time, the Company may use its
website as a channel of distribution of material Company
information. Financial and other material information regarding the
Company is routinely posted on and accessible at
investor.adt.com.
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 networks 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.
Investor Relations: |
Media Relations: |
investorrelations@adt.com |
media@adt.com |
Tel: 888-238-8525 |
|
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 divestiture of the commercial
business which was completed in October 2023 (the “Commercial
Divestiture”); the Company’s exit of the residential solar business
and the expected costs and benefits of such exit (the “ADT Solar
Exit”); repurchases 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 strategic bulk
purchases of customer accounts; the Company’s outlook and/or
guidance, which includes Total Revenue, Adjusted EBITDA, Adjusted
Diluted Income (Loss) per Share (“Adjusted EPS”) and Adjusted Free
Cash Flow (including interest rate swaps); any stated or implied
outcomes with regards to the foregoing; the impact from
cybersecurity attacks, including the incidents disclosed in the
Current Reports on Form 8-K filed with the SEC on August 8, 2024
and October 7, 2024 (together, the “Cybersecurity Incidents”), and
the related scope of investigations and expectations regarding
impact to the Company's operations or financial condition, and any
assumptions related thereto; and other matters. Without limiting
the generality of the preceding sentences, any time we use the
words “ongoing,” “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, we intend 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. We caution that these statements
are subject to risks and uncertainties, many of which are outside
of our 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 the effect of the Commercial
Divestiture and ADT Solar Exit on our ability to retain and hire
key personnel and to maintain relationships with customers,
suppliers and other business partners; risks related to the
Commercial Divestiture and ADT Solar Exit, including ADT’s business
becoming less diversified and the possible diversion of
management’s attention from ADT’s core CSB business operations;
uncertainties as to our ability and the amount of time necessary to
realize the expected benefits of the Commercial Divestiture and ADT
Solar Exit, including the risk that the ADT Solar Exit may not be
completed in a timely manner, or that the costs of the ADT Solar
Exit may exceed our best estimates; our ability to maintain and
grow our existing customer base and to integrate strategic bulk
purchases 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; the Company's
ongoing assessments of the impacts of the Cybersecurity Incidents;
the Company's expectations regarding its ability to contain and
remediate the Cybersecurity Incidents and to effectively implement
counter measures intended to safeguard the Company’s information
technology assets and operations; the impact of the Cybersecurity
Incidents on the Company's relationships with customers, employees
and regulators; the Company’s ability to coordinate effectively
with its third party business partners to address the Cybersecurity
Incidents; legal, reputational and financial risks resulting from
the Cybersecurity Incidents; and that any future, or still
undetected, cybersecurity related incident, whether an attack,
disruption, intrusion, denial of service, theft or other breach
could result in unauthorized access to, or disclosure of, data,
resulting in claims, costs and reputational harm that could
negatively affect our actual results of operations or financial
condition; and risks that are described in the Company’s Annual
Report and its Quarterly Reports on Form 10-Q, including the
sections titled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”
contained in those reports, and in our other filings with the SEC.
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.
ADT INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(in millions,
except per share data) (Unaudited) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monitoring and related services |
$ |
1,078 |
|
|
$ |
1,053 |
|
|
$ |
24 |
|
|
2% |
|
$ |
3,208 |
|
|
$ |
3,125 |
|
|
$ |
83 |
|
|
3% |
Security installation, product, and other |
|
166 |
|
|
|
126 |
|
|
|
40 |
|
|
32% |
|
|
430 |
|
|
|
355 |
|
|
|
75 |
|
|
21% |
Total revenue |
|
1,244 |
|
|
|
1,180 |
|
|
|
64 |
|
|
5% |
|
|
3,638 |
|
|
|
3,480 |
|
|
|
158 |
|
|
5% |
Cost of revenue (exclusive of depreciation and
amortization shown separately below): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monitoring and related services |
|
155 |
|
|
|
149 |
|
|
|
6 |
|
|
4% |
|
|
461 |
|
|
|
453 |
|
|
|
8 |
|
|
2% |
Security installation, product, and other |
|
67 |
|
|
|
39 |
|
|
|
28 |
|
|
73% |
|
|
152 |
|
|
|
114 |
|
|
|
38 |
|
|
33% |
Total cost of revenue |
|
222 |
|
|
|
187 |
|
|
|
35 |
|
|
19% |
|
|
613 |
|
|
|
567 |
|
|
|
46 |
|
|
8% |
Selling, general, and administrative expenses |
|
359 |
|
|
|
346 |
|
|
|
12 |
|
|
3% |
|
|
1,106 |
|
|
|
1,001 |
|
|
|
105 |
|
|
10% |
Depreciation and intangible asset amortization |
|
335 |
|
|
|
330 |
|
|
|
6 |
|
|
2% |
|
|
1,002 |
|
|
|
1,009 |
|
|
|
(7 |
) |
|
(1)% |
Merger, restructuring, integration, and other |
|
2 |
|
|
|
10 |
|
|
|
(8 |
) |
|
(84)% |
|
|
15 |
|
|
|
32 |
|
|
|
(17 |
) |
|
(53)% |
Operating income (loss) |
|
326 |
|
|
|
307 |
|
|
|
20 |
|
|
6% |
|
|
903 |
|
|
|
872 |
|
|
|
31 |
|
|
4% |
Interest expense, net |
|
(162 |
) |
|
|
(147 |
) |
|
|
(15 |
) |
|
(10)% |
|
|
(359 |
) |
|
|
(401 |
) |
|
|
42 |
|
|
11% |
Other income (expense) |
|
18 |
|
|
|
1 |
|
|
|
17 |
|
|
N/M |
|
|
45 |
|
|
|
— |
|
|
|
45 |
|
|
N/M |
Income (loss) from continuing operations before income
taxes and equity in net earnings (losses) of equity method
investee |
|
182 |
|
|
|
160 |
|
|
|
22 |
|
|
14% |
|
|
589 |
|
|
|
470 |
|
|
|
118 |
|
|
25% |
Income tax benefit (expense) |
|
(50 |
) |
|
|
(34 |
) |
|
|
(16 |
) |
|
(46)% |
|
|
(167 |
) |
|
|
(120 |
) |
|
|
(47 |
) |
|
(39)% |
Income (loss) from continuing operations before equity in
net earnings (losses) of equity method investee |
|
132 |
|
|
|
126 |
|
|
|
6 |
|
|
5% |
|
|
422 |
|
|
|
350 |
|
|
|
72 |
|
|
20% |
Equity in net earnings (losses) of equity method investee |
|
— |
|
|
|
(3 |
) |
|
|
3 |
|
|
N/M |
|
|
— |
|
|
|
(7 |
) |
|
|
7 |
|
|
N/M |
Income (loss) from continuing operations |
|
132 |
|
|
|
123 |
|
|
|
9 |
|
|
7% |
|
|
422 |
|
|
|
343 |
|
|
|
79 |
|
|
23% |
Income (loss) from discontinued operations, net of tax |
|
(5 |
) |
|
|
(209 |
) |
|
|
205 |
|
|
98% |
|
|
(111 |
) |
|
|
(456 |
) |
|
|
345 |
|
|
76% |
Net income (loss) |
$ |
127 |
|
|
$ |
(86 |
) |
|
$ |
213 |
|
|
N/M |
|
$ |
311 |
|
|
$ |
(113 |
) |
|
$ |
424 |
|
|
N/M |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations per share - basic |
$ |
0.15 |
|
|
$ |
0.13 |
|
|
|
|
|
|
$ |
0.46 |
|
|
$ |
0.38 |
|
|
|
|
|
Income (loss) from continuing operations per share - diluted |
$ |
0.14 |
|
|
$ |
0.13 |
|
|
|
|
|
|
$ |
0.44 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - basic |
$ |
0.14 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
$ |
0.34 |
|
|
$ |
(0.12 |
) |
|
|
|
|
Net income (loss) per share - diluted |
$ |
0.13 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
$ |
0.32 |
|
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - basic |
|
850 |
|
|
|
857 |
|
|
|
|
|
|
|
852 |
|
|
|
856 |
|
|
|
|
|
Weighted-average shares outstanding - diluted |
|
913 |
|
|
|
918 |
|
|
|
|
|
|
|
913 |
|
|
|
919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations per share - basic |
$ |
0.15 |
|
|
$ |
0.13 |
|
|
|
|
|
|
$ |
0.46 |
|
|
$ |
0.38 |
|
|
|
|
|
Income (loss) from continuing operations per share - diluted |
$ |
0.14 |
|
|
$ |
0.13 |
|
|
|
|
|
|
$ |
0.44 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - basic |
$ |
0.14 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
$ |
0.34 |
|
|
$ |
(0.12 |
) |
|
|
|
|
Net income (loss) per share - diluted |
$ |
0.13 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
$ |
0.32 |
|
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - basic |
|
55 |
|
|
|
55 |
|
|
|
|
|
|
|
55 |
|
|
|
55 |
|
|
|
|
|
Weighted-average shares outstanding - diluted |
|
55 |
|
|
|
55 |
|
|
|
|
|
|
|
55 |
|
|
|
55 |
|
|
|
|
|
Note: amounts may not sum due to rounding
ADT INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(in millions)
(Unaudited) |
|
September 30, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
95 |
|
$ |
15 |
Restricted cash and restricted cash equivalents |
|
109 |
|
|
115 |
Accounts receivable, net |
|
397 |
|
|
370 |
Inventories, net |
|
203 |
|
|
201 |
Prepaid expenses and other current assets |
|
195 |
|
|
242 |
Current assets of discontinued operations |
|
3 |
|
|
61 |
Total current assets |
|
1,003 |
|
|
1,005 |
Property and equipment, net |
|
260 |
|
|
254 |
Subscriber system assets, net |
|
3,003 |
|
|
3,006 |
Intangible assets, net |
|
4,899 |
|
|
4,877 |
Goodwill |
|
4,904 |
|
|
4,904 |
Deferred subscriber acquisition costs, net |
|
1,289 |
|
|
1,176 |
Other assets |
|
727 |
|
|
699 |
Noncurrent assets of discontinued operations |
|
1 |
|
|
43 |
Total
assets |
$ |
16,085 |
|
$ |
15,964 |
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
Current liabilities: |
|
|
|
Current maturities of long-term debt |
$ |
197 |
|
$ |
312 |
Accounts payable |
|
227 |
|
|
277 |
Deferred revenue |
|
250 |
|
|
255 |
Accrued expenses and other current liabilities |
|
534 |
|
|
556 |
Current liabilities of discontinued operations |
|
38 |
|
|
80 |
Total current liabilities |
|
1,245 |
|
|
1,480 |
Long-term debt |
|
7,525 |
|
|
7,513 |
Deferred subscriber acquisition revenue |
|
2,058 |
|
|
1,915 |
Deferred tax liabilities |
|
1,117 |
|
|
1,027 |
Other liabilities |
|
230 |
|
|
219 |
Noncurrent liabilities of discontinued operations |
|
12 |
|
|
21 |
Total
liabilities |
|
12,187 |
|
|
12,175 |
|
|
|
|
Total stockholders'
equity |
|
3,897 |
|
|
3,789 |
Total liabilities
and stockholders' equity |
$ |
16,085 |
|
$ |
15,964 |
Note: amounts may not sum due to rounding
ADT INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(in
millions) (Unaudited) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
127 |
|
|
$ |
(86 |
) |
|
$ |
311 |
|
|
$ |
(113 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
Depreciation and intangible asset amortization |
|
335 |
|
|
|
330 |
|
|
|
1,004 |
|
|
|
1,059 |
|
Amortization of deferred subscriber acquisition costs |
|
56 |
|
|
|
51 |
|
|
|
165 |
|
|
|
146 |
|
Amortization of deferred subscriber acquisition revenue |
|
(88 |
) |
|
|
(80 |
) |
|
|
(258 |
) |
|
|
(228 |
) |
Share-based compensation expense |
|
10 |
|
|
|
16 |
|
|
|
39 |
|
|
|
43 |
|
Deferred income taxes |
|
39 |
|
|
|
138 |
|
|
|
88 |
|
|
|
7 |
|
Provision for losses on receivables and inventory |
|
39 |
|
|
|
37 |
|
|
|
146 |
|
|
|
104 |
|
Goodwill, intangible, and other asset impairments |
|
— |
|
|
|
94 |
|
|
|
21 |
|
|
|
522 |
|
Unrealized (gain) loss on interest rate swap contracts |
|
63 |
|
|
|
(16 |
) |
|
|
61 |
|
|
|
(38 |
) |
Other non-cash items, net |
|
11 |
|
|
|
50 |
|
|
|
54 |
|
|
|
103 |
|
Changes in operating assets and liabilities, net of effects of
acquisitions and dispositions: |
|
|
|
|
|
|
|
Deferred subscriber acquisition costs |
|
(88 |
) |
|
|
(110 |
) |
|
|
(271 |
) |
|
|
(295 |
) |
Deferred subscriber acquisition revenue |
|
62 |
|
|
|
73 |
|
|
|
196 |
|
|
|
222 |
|
Other, net |
|
(68 |
) |
|
|
(50 |
) |
|
|
(133 |
) |
|
|
(285 |
) |
Net cash provided by (used in) operating
activities |
|
498 |
|
|
|
446 |
|
|
|
1,425 |
|
|
|
1,246 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
Dealer generated customer accounts and bulk account purchases |
|
(214 |
) |
|
|
(133 |
) |
|
|
(474 |
) |
|
|
(385 |
) |
Subscriber system asset expenditures |
|
(123 |
) |
|
|
(161 |
) |
|
|
(407 |
) |
|
|
(481 |
) |
Purchases of property and equipment |
|
(43 |
) |
|
|
(41 |
) |
|
|
(130 |
) |
|
|
(131 |
) |
Proceeds (payments) from sale of business, net of cash sold |
|
(21 |
) |
|
|
— |
|
|
|
(21 |
) |
|
|
— |
|
Proceeds (payments) from interest rate swaps |
|
(2 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
Other investing, net |
|
1 |
|
|
|
2 |
|
|
|
4 |
|
|
|
9 |
|
Net cash provided by (used in) investing
activities |
|
(402 |
) |
|
|
(333 |
) |
|
|
(1,034 |
) |
|
|
(988 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
Proceeds from long-term borrowings |
|
65 |
|
|
|
— |
|
|
|
971 |
|
|
|
650 |
|
Proceeds from receivables facility |
|
44 |
|
|
|
72 |
|
|
|
190 |
|
|
|
212 |
|
Proceeds (payments) from interest rate swaps |
|
24 |
|
|
|
23 |
|
|
|
72 |
|
|
|
59 |
|
Repurchases of common stock |
|
— |
|
|
|
— |
|
|
|
(93 |
) |
|
|
— |
|
Repayment of long-term borrowings, including call premiums |
|
(70 |
) |
|
|
(15 |
) |
|
|
(1,088 |
) |
|
|
(889 |
) |
Repayment of receivables facility |
|
(45 |
) |
|
|
(52 |
) |
|
|
(203 |
) |
|
|
(145 |
) |
Dividends on common stock |
|
(50 |
) |
|
|
(32 |
) |
|
|
(132 |
) |
|
|
(96 |
) |
Payments on finance leases |
|
(8 |
) |
|
|
(11 |
) |
|
|
(23 |
) |
|
|
(32 |
) |
Other financing, net |
|
(2 |
) |
|
|
(2 |
) |
|
|
(10 |
) |
|
|
(34 |
) |
Net cash provided by (used in) financing
activities |
|
(41 |
) |
|
|
(18 |
) |
|
|
(316 |
) |
|
|
(275 |
) |
|
|
|
|
|
|
|
|
Cash and cash equivalents and restricted cash and
restricted cash equivalents: |
|
|
|
|
|
|
|
Net increase (decrease) |
|
56 |
|
|
|
95 |
|
|
|
75 |
|
|
|
(18 |
) |
Beginning balance |
|
149 |
|
|
|
261 |
|
|
|
130 |
|
|
|
374 |
|
Ending balance |
$ |
205 |
|
|
$ |
356 |
|
|
$ |
205 |
|
|
$ |
356 |
|
Note: amounts may not sum due to rounding
ADT INC. AND
SUBSIDIARIESNON-GAAP MEASURES
ADT sometimes uses information (“non-GAAP
financial measures”) that is derived from the consolidated
financial statements, but that is not presented in accordance with
accounting principles generally accepted in the U.S. (“GAAP”).
Under SEC rules, non-GAAP financial measures may be considered in
addition to results prepared in accordance with GAAP, but should
not be considered a substitute for or superior to GAAP results.
The following information includes definitions
of the Company’s non-GAAP financial measures used in this release,
reasons management believes these measures are useful to investors
regarding the Company’s financial condition and results of
operations, additional purposes, if any, for which management uses
the non-GAAP financial measures, and limitations to using these
non-GAAP financial measures, as well as reconciliations of these
non-GAAP financial measures to the most comparable GAAP measures.
Each non-GAAP financial measure is presented following the
corresponding GAAP measure so as not to imply that more emphasis
should be placed on the non-GAAP measure. The limitations of
non-GAAP financial measures are best addressed by considering these
measures in conjunction with the appropriate GAAP measures. In
addition, computations of these non-GAAP measures may not be
comparable to other similarly titled measures reported by other
companies.
With regard to the Company’s financial guidance
for 2024, the Company is not providing a quantitative
reconciliation for forward-looking Adjusted EBITDA to GAAP income
(loss) from continuing operations, Adjusted EPS to GAAP diluted
income (loss) per share from continuing operations, and Adjusted
Free Cash Flow (including interest rate swaps) to GAAP net cash
provided by operating activities, which are the most directly
comparable respective GAAP measures. These GAAP measures cannot be
reliably predicted or estimated without unreasonable effort due to
their dependence on future uncertainties, such as the adjustment of
items used in the following reconciliations. Additionally,
information not currently available to the Company about other
adjusting items could have a potentially unpredictable and
potentially significant impact on future GAAP financial
results.
Unless otherwise noted, non-GAAP measures herein
reflect the results of only the Company’s continuing operations.
Unless otherwise noted, Free Cash Flow, Adjusted Free Cash Flow,
and Adjusted Free Cash Flow (including interest rate swaps) reflect
the results of both continuing and discontinued operations, which
is consistent with the presentation of the GAAP measure net cash
provided by (used in) operating activities. Adjusted Free Cash Flow
and Adjusted Free Cash Flow (including interest rate swaps) exclude
amounts related to the exit from the solar business, consistent
with the definition of these measures. Beginning in the third
quarter of 2024, all cash flows attributable to activities of the
solar business are excluded from these measures as the business is
substantially wound down.
Free Cash Flow, Adjusted Free Cash Flow,
and Adjusted Free Cash Flow including interest rate
swaps
The Company defines Free Cash Flow as cash flows
from operating activities less cash outlays related to capital
expenditures. The Company defines capital expenditures to include
accounts purchased through the Company’s network of authorized
dealers or third parties outside of the Company’s authorized dealer
network, subscriber system asset expenditures, and purchases of
property and equipment. These items are subtracted from cash flows
from operating activities because they represent long-term
investments that are required for normal business activities.
The Company defines Adjusted Free Cash Flow as
Free Cash Flow adjusted for net cash flows related to (i) net
proceeds from the Company’s consumer receivables facility; (ii)
restructuring and integration payments; (iii) integration-related
capital expenditures; and (iv) transaction costs and other payments
or receipts that may mask operating results or business trends.
Adjusted Free Cash Flow including interest rate swaps reflects
Adjusted Free Cash Flow plus net cash settlements on interest rate
swaps presented outside of net cash provided by (used in) operating
activities.
The Company believes the presentations of these
non-GAAP measures are appropriate to provide investors with useful
information about the Company’s ability to repay debt, make other
investments, and pay dividends. The Company believes the
presentation of Adjusted Free Cash Flow is also a useful measure of
the cash flow attributable to normal business activities, inclusive
of the net cash flows associated with the acquisition of
subscribers, as well as the Company’s ability to repay other debt,
make other investments, and pay dividends. Further, Adjusted Free
Cash Flow including interest rate swaps is a useful measure of
Adjusted Free Cash Flow inclusive of all cash interest.
There are material limitations to using these
non-GAAP measures. These non-GAAP measures adjust for cash items
that are ultimately within management’s discretion to direct, and
therefore, may imply that there is less or more cash available than
the most comparable GAAP measure. These non-GAAP measures are not
intended to represent residual cash flow for discretionary
expenditures since debt repayment requirements and other
non-discretionary expenditures are not deducted.
The non-GAAP measures in the table below include
cash flows associated with both continuing and discontinued
operations consistent with the applicable GAAP presentation on the
Statement of Cash Flows.
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by (used in): |
|
|
|
|
|
|
|
Operating activities |
$ |
498 |
|
|
$ |
446 |
|
|
$ |
1,425 |
|
|
$ |
1,246 |
|
Investing activities |
$ |
(402 |
) |
|
$ |
(333 |
) |
|
$ |
(1,034 |
) |
|
$ |
(988 |
) |
Financing activities |
$ |
(41 |
) |
|
$ |
(18 |
) |
|
$ |
(316 |
) |
|
$ |
(275 |
) |
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating
activities |
$ |
498 |
|
|
$ |
446 |
|
|
$ |
1,425 |
|
|
$ |
1,246 |
|
Dealer generated customer accounts and bulk account purchases |
|
(214 |
) |
|
|
(133 |
) |
|
|
(474 |
) |
|
|
(385 |
) |
Subscriber system asset expenditures |
|
(123 |
) |
|
|
(161 |
) |
|
|
(407 |
) |
|
|
(481 |
) |
Purchases of property and equipment |
|
(43 |
) |
|
|
(41 |
) |
|
|
(130 |
) |
|
|
(131 |
) |
Free Cash Flow |
|
119 |
|
|
|
111 |
|
|
|
415 |
|
|
|
249 |
|
Net proceeds (payments) from receivables facility |
|
(1 |
) |
|
|
20 |
|
|
|
(13 |
) |
|
|
68 |
|
Restructuring and integration payments(1) |
|
4 |
|
|
|
13 |
|
|
|
30 |
|
|
|
27 |
|
Other, net(2) |
|
14 |
|
|
|
4 |
|
|
|
23 |
|
|
|
5 |
|
Adjusted Free Cash Flow |
$ |
137 |
|
|
$ |
148 |
|
|
$ |
454 |
|
|
$ |
348 |
|
Interest rate swaps presented outside operating activities(3) |
|
22 |
|
|
|
23 |
|
|
|
66 |
|
|
|
59 |
|
Adjusted Free Cash Flow (including interest rate
swaps) |
$ |
158 |
|
|
$ |
171 |
|
|
$ |
520 |
|
|
$ |
408 |
|
Note: amounts may not sum due to
rounding_______________________
(1) |
During 2024, primarily includes costs related to the ADT Solar
Exit. During 2023, primarily includes costs associated with ADT
Solar. |
(2) |
During 2024, primarily includes payments related to liabilities
associated with the solar business, as well as third party costs
associated with implementation of a new ERP system that the Company
will not continue to incur once the ERP system is fully
implemented, which is expected to complete in the second half of
2025. During 2023, primarily includes separation costs related to
the divestiture of the commercial business. |
(3) |
Includes net settlements related to interest rate swaps presented
outside of net cash provided by (used in) operating
activities. |
Adjusted EBITDA from Continuing Operations
(“Adjusted EBITDA”) and Adjusted EBITDA Margin from Continuing
Operations (“Adjusted EBITDA Margin”)
The Company believes Adjusted EBITDA is useful
to investors to measure the operational strength and performance of
its business. The Company believes the presentation of Adjusted
EBITDA is useful as it provides investors additional information
about operating profitability adjusted for certain non-cash items,
non-routine items the Company does not expect to continue at the
same level in the future, as well as other items not core to its
operations. Further, the Company believes Adjusted EBITDA provides
a meaningful measure of operating profitability because the Company
uses it for evaluating business performance, making budgeting
decisions, and comparing company performance against other peer
companies using similar measures.
The Company defines Adjusted EBITDA as income
(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; (vii) impairment
charges; and (viii) non-cash, non-routine, or other adjustments or
charges not necessary to operate our business.
There are material limitations to using Adjusted
EBITDA as it does not include certain significant items which
directly affect income (loss) from continuing operations (the most
comparable GAAP measure).
The discussion above is also applicable to
Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a
percentage of total revenue.
|
Three Months Ended September 30, |
|
Twelve Months Ended September 30, |
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Income (loss) from continuing operations |
$ |
132 |
|
|
$ |
123 |
|
|
$ |
529 |
|
Interest expense, net |
|
162 |
|
|
|
147 |
|
|
|
528 |
|
Income tax expense (benefit) |
|
50 |
|
|
|
34 |
|
|
|
207 |
|
Depreciation and intangible asset amortization |
|
335 |
|
|
|
330 |
|
|
|
1,329 |
|
Amortization of deferred subscriber acquisition costs |
|
56 |
|
|
|
48 |
|
|
|
216 |
|
Amortization of deferred subscriber acquisition revenue |
|
(88 |
) |
|
|
(77 |
) |
|
|
(338 |
) |
Share-based compensation expense |
|
10 |
|
|
|
10 |
|
|
|
47 |
|
Merger, restructuring, integration and other |
|
2 |
|
|
|
10 |
|
|
|
22 |
|
Other, net(1) |
|
(1 |
) |
|
|
(1 |
) |
|
|
14 |
|
Adjusted EBITDA from continuing operations |
$ |
659 |
|
|
$ |
623 |
|
|
$ |
2,553 |
|
|
|
|
|
|
|
Income (loss) from continuing operations to total revenue
ratio |
|
11 |
% |
|
|
10 |
% |
|
|
11 |
% |
Adjusted EBITDA Margin (as
percentage of Total Revenue) |
|
53 |
% |
|
|
53 |
% |
|
|
53 |
% |
Note: amounts may not sum due to
rounding_______________________
(1) |
During the three months ended 2024, primarily includes unrealized
(gains) / losses related to interest rate swaps presented in other
income (expense). During the twelve months ended 2024, primarily
includes unrealized (gains) / losses related to interest rate swaps
presented in other income (expense) and loss on extinguishment of
debt, partially offset by the gain on sale of a business and other
investment. |
Historical Adjusted EBITDA (including
discontinued operations)
The Company believes the presentation of
historical Adjusted EBITDA provides useful information to investors
about the Company's operating profitability adjusted for certain
non-cash items, non-routine items that the Company does not expect
to continue at the same level in the future, as well as other items
that are not core to the Company's operations. Further, the Company
believes historical Adjusted EBITDA provides a meaningful measure
of operating profitability because the Company uses it for
evaluating business performance, making budgeting decisions, and
comparing company performance against that of other peer companies
using similar measures.
The Company defines historical Adjusted EBITDA
as net income or loss 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; (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.
Historical Adjusted EBITDA includes results of the
Company's continuing and discontinued operations and reflects the
calculation of the measure prior to the Company reporting results
of the commercial and solar businesses as discontinued
operations.
There are material limitations to using
historical Adjusted EBITDA as it does not reflect certain
significant items, which directly affect net income or loss (the
most comparable GAAP measure).
|
Twelve Months Ended September 30, |
(in millions) |
|
2023 |
|
Net income (loss) |
$ |
38 |
|
Interest expense, net |
|
551 |
|
Income tax expense (benefit) |
|
28 |
|
Depreciation and intangible asset amortization |
|
1,470 |
|
Amortization of deferred subscriber acquisition costs |
|
190 |
|
Amortization of deferred subscriber acquisition revenue |
|
(296 |
) |
Share-based compensation expense |
|
60 |
|
Merger, restructuring, integration and other |
|
80 |
|
Goodwill impairment(1) |
|
511 |
|
Change in fair value of other financial instruments(2) |
|
(96 |
) |
Other, net(3) |
|
2 |
|
Historical Adjusted EBITDA |
$ |
2,539 |
|
Note: amounts may not sum due to
rounding_______________________
(1) |
Represents goodwill impairment charges related to the Solar
reporting unit. |
(2) |
In connection with the State Farm
investment, amounts represent the change in fair value of a
contingent forward purchase contract related to the tender offer
during 2022. |
(3) |
Primarily includes revenue and
costs associated with replacing cellular technology used in many of
our security systems pursuant to a replacement program. |
Adjusted Income (Loss) from Continuing
Operations (“Adjusted Income (Loss)”) and Adjusted Diluted Income
(Loss) per Share from Continuing Operations (“Adjusted Diluted
Income (Loss) per Share” or “Adjusted EPS”)
The Company defines Adjusted Income (Loss) as
income (loss) from continuing operations adjusted for (i) merger,
restructuring, integration, and other; (ii) share-based
compensation expense; (iii) unrealized gains and losses on interest
rate swap contracts not designated as hedges; (iv) impairment
charges; (v) non-cash, non-routine, or other adjustments or charges
not necessary to operate our business; and (vi) the impact these
adjusted items have on taxes.
Adjusted Diluted Income (Loss) per share is
Adjusted Income (Loss) divided by diluted weighted-average shares
outstanding of common stock. When the control number for the GAAP
calculation is negative, diluted weighted-average shares
outstanding of common stock does not include the assumed conversion
of Class B common stock and other potential shares, such as
share-based compensation awards, to shares of common stock.
The Company believes Adjusted Income (Loss) and
Adjusted Diluted Income (Loss) per share are benchmarks used by
analysts and investors who follow the industry for comparison of
its performance with other companies in the industry, although
these measures may not be directly comparable to similar measures
reported by other companies.
There are material limitations to using these
measures, as they do not reflect certain significant items which
directly affect income (loss) from continuing operations and
related per share amounts (the most comparable GAAP measures).
|
Three Months Ended September 30, |
(in millions, except per share data) |
|
2024 |
|
|
|
2023 |
|
Income (loss) from continuing operations |
$ |
132 |
|
|
$ |
123 |
|
Merger, restructuring, integration, and other |
|
2 |
|
|
|
10 |
|
Share-based compensation expense |
|
10 |
|
|
|
10 |
|
Interest rate swaps, net(1) |
|
63 |
|
|
|
9 |
|
Other, net |
|
(5 |
) |
|
|
(1 |
) |
Tax impact on adjustments(2) |
|
(18 |
) |
|
|
(7 |
) |
Adjusted Income (Loss) from continuing
operations |
$ |
183 |
|
|
$ |
144 |
|
|
|
|
|
Weighted-average shares outstanding -
diluted(3): |
|
|
|
Common Stock |
|
913 |
|
|
|
918 |
|
Class B Common Stock |
|
55 |
|
|
|
55 |
|
|
|
|
|
Income (loss) per share from continuing operations -
diluted: |
|
|
|
Common Stock |
$ |
0.14 |
|
|
$ |
0.13 |
|
Class B Common Stock |
$ |
0.14 |
|
|
$ |
0.13 |
|
|
|
|
|
Adjusted Diluted Income (Loss) per
share(4) |
$ |
0.20 |
|
|
$ |
0.16 |
|
Note: amounts may not sum due to
rounding._______________________
(1) |
Primarily includes the unrealized (gain) or loss on interest rate
swaps not designated as cash flow hedges. During the three months
ended 2023, includes $25 million associated with the
reclassification to interest expense, net from accumulated other
comprehensive income of historical losses related to certain
interest rate swaps for which the Company previously applied hedge
accounting but for which the cash flows are probable of not
occurring as a result of the partial redemption of the Company’s
First Lien Term Loan due 2026. |
(2) |
Represents the federal and state blended statutory rate. |
(3) |
Refer to the Company’s Quarterly Reports on Form 10-Q and Annual
Reports on Form 10-K for further discussion regarding the
computation of diluted weighted-average shares outstanding of
common stock. |
(4) |
Calculated as Adjusted Income (Loss) divided by diluted
weighted-average shares outstanding of common stock. |
Leverage Ratios
Net Leverage Ratio is calculated as the ratio of
net debt to last twelve months (“LTM”) Adjusted EBITDA from
continuing operations. Net debt is calculated as total debt
excluding the Receivables Facility, including capital leases, minus
cash and cash equivalents. Refer to the discussion on Adjusted
EBITDA for descriptions of the differences between Adjusted EBITDA
and net income (loss) from continuing operations, which is the most
comparable GAAP measure. The Company believes Net Leverage Ratio is
a useful measure of the Company's credit position and progress
towards leverage targets. There are material limitations to using
Net Leverage Ratio as the Company may not always be able to use
cash to repay debt on a dollar-for-dollar basis.
(in millions) |
September 30, 2024 |
Total debt (book value)(1) |
$ |
7,721 |
LTM Income (loss) from continuing operations |
$ |
529 |
Debt to income (loss) from continuing operations
ratio |
14.6x |
(in millions) |
September 30, 2024 |
Revolver |
$ |
— |
|
Term loans |
|
1,984 |
|
First lien and ADT notes |
|
4,100 |
|
Receivables facility |
|
423 |
|
Finance leases and other(2) |
|
74 |
|
Total first lien debt |
$ |
6,581 |
|
Second lien notes |
|
1,300 |
|
Total debt(3) |
$ |
7,881 |
|
|
|
Less: Cash and cash equivalents |
|
(95 |
) |
Less: Receivables Facility |
|
(423 |
) |
Net debt |
$ |
7,362 |
|
|
|
LTM Adjusted EBITDA from continuing operations |
$ |
2,553 |
|
Net leverage ratio |
2.9x |
Note: amounts may not sum due to
rounding_______________________(1) Excludes Solar finance leases
consistent with the GAAP presentation as a discontinued
operation.(2) Includes debt related to Solar business.(3) Debt
instruments are stated at face value.
Historical Leverage Ratios
Historical Net Leverage Ratio is calculated as
the ratio of net debt to LTM Historical Adjusted EBITDA. Net debt
is calculated as total debt excluding the Receivables Facility,
including capital leases, minus cash and cash equivalents. Refer to
the discussion on Historical Adjusted EBITDA for descriptions of
the differences between Historical Adjusted EBITDA and net income
(loss), which is the most comparable GAAP measure. The Company
believes Net Leverage Ratio is a useful measure of the Company's
credit position and progress towards leverage targets. There are
material limitations to using Net Leverage Ratio as the Company may
not always be able to use cash to repay debt on a dollar-for-dollar
basis.
Historical Leverage Ratio includes results of
the Company's continuing and discontinued operations and reflects
the calculation of the measure prior to the Company reporting
results of the commercial and solar businesses as discontinued
operations.
(in millions) |
September 30, 2023 |
Total debt (book value) |
$ |
9,697 |
LTM net income (loss) |
$ |
38 |
Debt to income (loss) ratio |
256.0x |
(in millions) |
September 30, 2023 |
Revolver |
$ |
— |
|
Term loans |
|
3,343 |
|
First lien and ADT notes |
|
4,700 |
|
Receivables facility |
|
423 |
|
Finance leases and other |
|
119 |
|
Total first lien debt |
$ |
8,584 |
|
Second lien notes |
|
1,300 |
|
Total
debt(1) |
$ |
9,884 |
|
|
|
Less: Cash and cash equivalents |
|
(239 |
) |
Less: Receivables Facility |
|
(423 |
) |
Net debt |
$ |
9,222 |
|
|
|
LTM Historical Adjusted EBITDA |
$ |
2,539 |
|
Net leverage ratio |
3.6x |
Note: amounts may not sum due to
rounding_______________________(1) Debt instruments are stated at
face value.
ADT (NYSE:ADT)
過去 株価チャート
から 10 2024 まで 11 2024
ADT (NYSE:ADT)
過去 株価チャート
から 11 2023 まで 11 2024