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For the Three and Six Months Ended June 30, 2015
Ascent Capital Group, Inc. (Nasdaq:ASCMA) has reported results for the three and six months ended June 30, 2015. Ascent is a holding company that owns Monitronics International, Inc., the nation’s second largest home security alarm monitoring company.
Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to nearly 1.1 million residential and commercial customers as of June 30, 2015. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.
Highlights:
– Ascent’s net revenue for the three and six months ended June 30, 2015 increased 5.1% and 4.6%, respectively
– Ascent’s Pre-SAC Adjusted EBITDA, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the three and six months ended June 30, 2015, increased 2.3% and 3.4%, respectively
– Monitronics’ Pre-SAC Adjusted EBITDA for the three and six months ended June 30, 2015, increased 3.0% and 3.5%, respectively
– Monitronics’ subscriber accounts as of June 30, 2015 increased 3.5% to 1,092,083
LiveWatch is a direct-to-consumer business, and as such recognizes certain revenue and expenses associated with subscriber acquisition. This is in contrast to Monitronics, which capitalizes payments to dealers to acquire accounts. Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics’ financial performance in servicing its customer base. Please see the Appendix to this release for additional information about this non-GAAP measure.
Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “The business performed in line with expectations in the second quarter, delivering solid financial and operational results. Further, our acquisition of LiveWatch continued to provide a healthy new pipeline of subscriber additions and is on pace for continued growth in the back half of the year.”
Mike Haislip, President and Chief Executive Officer of Monitronics said, “We executed well in the second quarter, delivering growth in revenue, Pre-Sac Adjusted EBITDA and overall subscriber accounts. In line with expectations, unit attrition ticked up modestly to 13.4% quarter-over-quarter, largely due to a prior significant bulk acquisition that resulted in a higher percentage of accounts reaching the end of their initial contract term. We are also seeing the benefits of our acquisition of LiveWatch as the business continued to exceed expectations in its first full quarter as part of Monitronics, delivering profitable RMR and account growth in the quarter. Moving forward, we are focused on identifying additional growth opportunities in the form of a deliberate approach to acquiring high quality subscribers and internal account acquisitions through LiveWatch.”
