Adt Corp 10-Q Quarterly Report July 2015

“We delivered our sixth consecutive quarter of improving operational metrics and solid financial results” said Naren Gursahaney, ADT’s CEO. “Our plan called for reduced attrition, lower SAC, higher gross adds, and we are delivering on these key elements. We remain committed to investing in quality growth initiatives and aligning with the right partners to drive long term value for ADT.”

THIRD QUARTER 2015 FINANCIAL HIGHLIGHTS


•	GAAP: revenue of $898 million, net income of $75 million, diluted EPS of $0.44, operating cash flow of $424 million


•	Recurring revenue of $834 million, up 6.2% or 6.8% in constant currency⁽¹⁾⁽²⁾


•	Pre-SAC EBITDA before special items of $560 million⁽¹⁾, up $16 million⁽²⁾


•	EBITDA before special items of $451 million⁽¹⁾, down $1 million vs. prior year


•	Diluted EPS before special items of $0.49⁽¹⁾vs. $0.55⁽¹⁾ in prior year


•	Operating cash flow before special items of $435 million⁽¹⁾, up 6%⁽²⁾


•	Steady-state free cash flow before special items of $936 million⁽¹⁾, up $2 million over prior year

THIRD QUARTER 2015 BUSINESS HIGHLIGHTS


•	Increased gross additions to 262 thousand, up nearly 5% from prior year


•	Improved revenue attrition to 12.4%, a year-over-year improvement of 150 basis points


•	Improved unit attrition to 12.3%, a year-over-year improvement of 120 basis points


•	Increased new and resale revenue per user to $48.19, an increase of $1.15 or 2.4% over prior year


•	Reduced direct channel net SAC creation multiple excluding upgrades to 30.7x, a 0.4x improvement over prior year


•	Drove ADT Pulse take rates to 57%; Total interactive customers comprise 21% of the total customer base


•	Drove over a 15% increase in gross additions in ADT Business channel over prior year


•	Repurchased approximately $51 million in shares since last quarter


•	Announced an incremental 3 year, $1 billion share repurchase program

BOCA RATON, Fla. - July 29, 2015 - The ADT Corporation (NYSE: ADT) today reported its financial results for the third quarter of 2015. The Company reported total revenue of $898 million, an increase of 5.8%, or 6.2% in constant currency⁽¹⁾, compared to the third quarter of 2014. Recurring revenue, which made up approximately 93% of total revenue in the quarter, was $834 million, up 6.2% compared to the same period last year and up 6.8% in constant currency⁽¹⁾. Recurring revenue growth in the quarter was driven by an increase in ADT's new and resale revenue per user, which rose 2.4% over last year to $48.19, the addition of Reliance Protectron Inc. ("Protectron"), strong revenue growth by ADT Business and improved customer retention. Revenue attrition for the quarter improved to 12.4%, an improvement of 10 basis points sequentially and 150 basis points year-over-year. Unit attrition for residential and business improved 20 basis points sequentially, and 120 basis points from last year, ending at 12.3% for the quarter. ADT closed the quarter with 6.6 million customer accounts, a 4.9% increase over last year. Pre-SAC EBITDA before special items increased by $16 million to $560 million⁽¹⁾, a 2.9% increase over the prior year, and pre-SAC EBITDA margin before special items was 66.0%⁽¹⁾. EBITDA before special items decreased by $1 million to $451 million⁽¹⁾, while EBITDA margin before special items was 50.2%⁽¹⁾for

The following information was filed by Adt Corp on Wednesday, July 29, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Adt Corp provided additional information to their SEC Filing as exhibits

Exhibit 12.1: Statement Regarding Calculation Of Ratios

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

CIK: 1546640
Form Type: 10-Q Quarterly Report
Accession Number: 0001546640-15-000024
Submitted to the SEC: Wed Jul 29 2015 2:37:04 PM EST
Accepted by the SEC: Wed Jul 29 2015
Period: Friday, June 26, 2015
Industry: Detective Guard And Armored Car Services