Adt Inc. (ADT) 10-Q Quarterly Report November 2020

ADT Inc. (NYSE: ADT), a leading provider of security, automation, and smart home solutions serving consumer and business customers in the United States, today reported the results for its second quarter of 2020.

SECOND QUARTER 2020 HIGHLIGHTS COMPARED TO PRIOR YEAR⁽¹⁾

•Total revenue of $1,331 million, up 4% from $1,284 million

•Net loss of $107 million, compared to $104 million

•Year to date net cash provided by operating activities of $629 million, compared to $979 million

•Year to date net cash used in investing activities of $536 million, compared to $788 million

•Year to date net cash used in financing activities of $96 million, compared to $515 million

•Adjusted EBITDA of $563 million, compared to $630 million

•Year to date Adjusted Free Cash Flow⁽²⁾ of $405 million, compared to $292 million.

•Trailing twelve-month revenue payback improved to 2.3 years from 2.4 years

•Trailing twelve-month gross customer revenue attrition of 13.1%, an improvement of 20 bps

“Our strong financial results and operating performance underscore the resilience of our business model and the hard work of our entire team during the most challenging of circumstances brought about by COVID-19,” stated Jim DeVries, ADT's President and CEO. “During the quarter, we generated year-over-year revenue growth, robust free cash flow, an improved revenue payback multiple, and better customer retention, all while continuing to prioritize the well-being of our associates and customers. Simultaneously, we aggressively moved forward with our many strategic initiatives to optimize our long-term capabilities. Our groundbreaking strategic partnership with Google greatly advances our opportunities in security and smart home automation, and, along with other initiatives including consumer financing, Blue by ADT, and our Red Hawk and Defenders acquisitions, enhances ADT’s long-term growth platform and ability to create shareholder value in the years ahead.”

The following information was filed by Adt Inc. (ADT) on Wednesday, August 5, 2020 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 Adt Inc.'s 10-Q Quarterly Report:

Financial - Earnings Highlight
Our definition of Adjusted EBITDA, a reconciliation of Adjusted EBITDA to net income (loss) (the most comparable GAAP measure), and additional information, including a description of the limitations relating to the use of Adjusted EBITDA, are provided under "-Non-GAAP Measures."

Financial - Shares Highlight
We may effect these repurchases pursuant to one or more trading plans to be adopted in accordance with Rule 10b5-1 (each, a "10b5-1 plan") under the Securities Exchange Act of 1934 (the "Exchange Act"), in privately negotiated transactions, in open market transactions, or pursuant to an accelerated share repurchase program.
Other - Other Highlight
We believe our cash position, borrowing capacity available under our revolving credit facility and Receivables Facility, and cash provided by operating 39 activities are, and will continue to be, adequate to meet our operational and business needs in the next twelve months as well as our long-term liquidity needs.
Financial - Cash Flow Highlight
Cash Flows from Investing Activities The decrease in cash flows used in investing activities was primarily due to (i) a decrease in the volume of dealer and bulk account purchases and an advance payment received for dealer charge-backs in connection with the Defenders Acquisition, (ii) a decrease in the volume of subscriber system asset expenditures as a result of the Equipment Ownership Model Change and the sale of ADT Canada, and (iii) proceeds received associated with the sale of a strategic investment.
Financial - Expense Highlight
The proceeds from the Second Lien Notes due 2028, along with cash on hand and borrowings under the First Lien Revolving Credit Facility, were used to redeem the outstanding $1.2 billion aggregate principal amount of our 9.250% second-priority senior secured notes due 2023 (the "Prime Notes") and pay any related fees and expenses, including the call premium on the outstanding Prime Notes.
Financial - Cash Flow
Cash Flow Analysis The following...Read more
Financial - Earnings
Further, we believe Adjusted EBITDA...Read more
M & A - Other
The effective tax rate primarily...Read more
Financial - Shares
Share Repurchase Program On February...Read more
Financial - Expense
Selling, General and Administrative Expenses...Read more
Financial - Cash Flow
NON-GAAP MEASURES To provide investors...Read more
Financial - Expense
Nine Months Ended September 30,...Read more
Other - Other
The improvement in attrition was...Read more
Other - Other
The improvement in attrition was...Read more
Financial - Shares
Prior to closing, the Securities...Read more
M & A - Other
Merger, Restructuring, Integration, and Other...Read more
Financial - Shares
Issuance of Class B Common...Read more
Financial - Shares
On March 23, 2020, we...Read more
Other - Other
Without limiting the generality of...Read more
Financial - Cash Flow
In connection with our transition...Read more
Financial - Earnings
These measures are not financial...Read more
M & A - Other
The Commercial Agreement specifies that...Read more
Financial - Expense
Depreciation and Intangible Asset Amortization...Read more
Financial - Expense
Depreciation and Intangible Asset Amortization...Read more
Financial - Cash Flow
(2)Adjusted EBITDA and Free Cash...Read more
Financial - Cash Flow
In connection with our transition...Read more
Other - Other
Factors that could cause such...Read more
Financial - Expense
33 Cost of Revenue Cost...Read more
M & A - Other
In order to optimize returns...Read more
Financial - Expense
Three Months Ended September 30,...Read more
Financial - Expense
Interest Expense, net The increase...Read more
Other - Other
This increase was partially offset...Read more
Revenue - Product
The First Lien Notes due...Read more
Revenue - Product
In connection with our transition...Read more
Financial - Cash Flow
Cash Flows from Financing Activities...Read more
Revenue - Product
In connection with the anticipated...Read more
Financial - Cash Flow
Our definition of Free Cash...Read more
Revenue - Product
Prime Notes The indenture underlying...Read more
Other - Other
The decrease in RMR was...Read more
Other - Other
The decrease in RMR was...Read more
Other - Other
Refer to the "-Non-GAAP Measures"...Read more
Other - Other
Under the terms of the...Read more
Other - Other
Under the terms of the...Read more
Financial - Dividend
During the nine months ended...Read more
Financial - Dividend
These cash inflows were partially...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Adt Inc. provided additional information to their SEC Filing as exhibits

Exhibit 10.23: Material Contract

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

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

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: ADT
CIK: 1703056
Form Type: 10-Q Quarterly Report
Accession Number: 0001703056-20-000125
Submitted to the SEC: Thu Nov 05 2020 4:56:20 PM EST
Accepted by the SEC: Thu Nov 05 2020
Period: Wednesday, September 30, 2020
Industry: Detective Guard And Armored Car Services