Investor Relations

Ascent Capital Group Announced Financial Results for the Three Months Ended March 31, 2018

by Paul Jacobson | May 11, 2018

ENGLEWOOD, Colo., May 08, 2018 -- Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) has reported results for the three months ended March 31, 2018. Ascent is a holding company that owns MONI, one of the nation's largest home security alarm monitoring companies.

Headquartered in the Dallas-Fort Worth area, MONI provides security alarm monitoring services to approximately 1 million residential and commercial customers as of March 31, 2018. MONI's long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

Highlights1:

  • Ascent's net revenue for the three months ended March 31, 2018 totaled $133.8 million.
  • Ascent's net loss for the three months ended March 31, 2018 totaled $30.8 million. MONI's net loss for the three months ended March 31, 2018 totaled $26.2 million.
  • Ascent's Adjusted EBITDA for the three months ended March 31, 2018 totaled $68.9 million. MONI's Adjusted EBITDA for the three months ended March 31, 2018 totaled $70.0 million.
  • The Company expects to formally launch the Brinks Home Security™ brand in May 2018.
  • The Company's partnership with Nest is off to a solid start with approximately 3,000 accounts activated since the launch of professional monitoring on December 5, 2017.
  • The Company's Direct Channel grew 21% year-over-year and 16% sequentially.
  • Consolidated creation costs totaled 34.6 times in the three months ended March 31, 2018, down 1.0 times year-over-year and down 1.4 times sequentially, due to improved efficiency in the Company's Direct Channel.

Ascent Chief Executive Officer, Bill Niles stated, "The MONI team continues to remain focused on improving key operating metrics.  MONI delivered significant year over year growth in the direct to consumer sales channel and they have positioned the business to launch all of its operations, marketing and sales efforts under the Brinks Home Security™ brand in the second quarter.  We are pleased with the progress."  

Jeffery Gardner, President and Chief Executive Officer of MONI said, "In the first quarter we made solid progress against several of our operational initiatives, including improvements in account growth and creation multiples. On a sequential basis, we delivered a 17% and 16% improvement in customer additions in our Dealer and Direct Channels, respectively, in the quarter.  Our largest dealer, Skyline, improved performance in each month of the quarter since launching with MONI on January 1st. Our partnership with Nest is also ramping up with approximately 3,000 accounts activated since the launch of professional monitoring on December 5, 2017. Further, consolidated creation costs dropped in the first quarter to 34.6 times. While we saw some sequential improvement in RMR attrition, we still have more work to do on both unit and RMR attrition, leveraging pricing strategies while taking a balanced approach to contract extensions."

"Our efforts around the BRINKS rebrand are also progressing. We are on track to officially launch the full rebranding in May. We are excited for this new chapter in the Company's evolution and look forward to the opportunities ahead."

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