Brinks Home Security Reports Results for the Three Months Ended March 31, 2020
Dallas-Fort Worth, TX - May 14, 2020 – Monitronics International, Inc. and its subsidiaries (doing business as Brinks Home Security TM), (“Brinks Home Security” or the “Company”) (OTC: SCTY) today announced results for the three months ended March 31, 2020.
First Quarter Key Highlights:
•Net revenue of $122.6 million, as compared to $129.6 million in the prior year period
•Net loss of $114.0 million, which includes an $81.9 million charge for goodwill impairment, as compared to net loss of $31.8 million in the prior year period
•Adjusted EBITDA of $58.7 million, as compared to $73.7 million in the prior year period
•The Company acquired 10,960 bulk accounts
William Niles, Interim Chief Executive Officer of Brinks Home Security commented, “At the onset of COVID-19, we implemented a pandemic response plan focused on the health and safety of our employees and customers as well as maintaining continuity of service in the communities we serve. I am extremely proud of the dedication and commitment our employees have demonstrated during these difficult times in providing uninterrupted and best in class service to our over 800,000 customers.”
“We continue to take decisive actions to protect the company’s balance sheet and liquidity, including implementing steps to manage our cost base. We also continue to refine our go-forward strategic plan to contemplate the post COVID-19 business environment. I remain confident that Brinks Home Security will emerge from this period well-positioned for the future.”
Customer & Attrition Data
The Company acquires customers through its direct-to-consumer sales channel (the "Direct to Consumer Channel"), which offers both Do-It-Yourself and professional installation security solutions and through its exclusive authorized dealer network (the "Dealer Channel"), which provides product and installation services, as well as support to customers.
During the three months ended March 31, 2020, the Company acquired 27,414 subscriber accounts through our Dealer Channel, Direct to Consumer Channel and bulk negotiated account acquisitions (“bulk buys”). This represents an increase of 37.0% as compared to the prior year period. The increase for the three-month period is principally due to a bulk buy of 10,960 accounts made in March 2020. There were no bulk buys during the three months ended March 31, 2019. The increase was partially offset by a year-over-year decline in accounts generated in the Dealer Channel, primarily due to the Company’s election to cease purchasing accounts from two dealers in the fourth quarter of 2019 and restrictions on door-to-door selling relating to the outbreak of COVID-19 starting in the latter half of March 2020.
The following information was filed by Monitronics International Inc (SCTY) on Friday, May 15, 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.