Investor Relations

Ascent Capital Group Announces Financial Results for the Three and Twelve Months Ended December 31, 2018

by User Not Found | Apr 03, 2019

ENGLEWOOD, Colo., April 01, 2019 (GLOBE NEWSWIRE) -- Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and twelve months ended December 31, 2018. Ascent is a holding company that owns Brinks Home Security™, one of the nation’s largest home security alarm monitoring companies.

Headquartered in the Dallas-Fort Worth area, Brinks Home Security provides security alarm monitoring services to approximately 922,000 residential and commercial customers as of December 31, 2018. Brinks Home Security’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 and twelve months ended December 31, 2018 totaled $134.4 million and $540.4 million, respectively
  • Ascent’s net loss for the three and twelve months ended December 31, 2018 totaled $382.7 million and $698.0 million, respectively. Brinks Home Security’s net loss for the three and twelve months ended December 31, 2018 totaled $376.9 million and $678.8 million, respectively. Net loss for the three and twelve months ended December 31, 2018 includes goodwill impairment charges of $349.1 million and $563.5 million, respectively. 
  • Ascent’s Adjusted EBITDA for the three and twelve months ended December 31, 2018 totaled $75.6 million and $280.8 million, respectively. Brinks Home Security’s Adjusted EBITDA for the three and twelve months ended December 31, 2018 totaled $76.0 million and $289.4 million, respectively

Results for the Three and Twelve Months Ended December 31, 2018

For the three months ended December 31, 2018, Ascent reported net revenue of $134.4 million, an increase of 0.7%. The increase in revenue for the three months ended December 31, 2018 included a $1.1 million favorable impact of the adoption of Topic 606, discussed below. For the twelve months ended December 31, 2018, net revenue totaled $540.4 million, a decrease of 2.4%. The reduction in revenue for the twelve months ended December 31, 2018 is due to the lower average number of subscribers in 2018. This decrease was partially offset by an increase in average recurring monthly revenue (“RMR”) per subscriber to $45.27 due to certain price increases enacted during the past twelve months. In addition, the Company recognized an $8.1 million increase in revenue for the twelve months ended December 31, 2018 from the favorable impact of the new revenue recognition guidance, Topic 606, adopted effective January 1, 2018. All revenues of Ascent are generated by its wholly-owned subsidiary, Brinks Home Security.

Ascent’s total cost of services, which are all incurred by Brinks Home Security, for the three months ended December 31, 2018 decreased 4.3% to $28.1 million. The decrease in cost of services for the three months ended December 31, 2018 is attributable to lower production volume in the direct to consumer sales channel which reduced expensed subscriber acquisition costs to $2.2 million for the three months ended December 31, 2018 as compared to $3.4 million for the three months ended December 31, 2017. Expensed subscriber acquisition costs include equipment and labor costs associated with the creation of new subscribers. Further contributing to the decrease in cost of services for the three months ended December 31, 2018 was fewer field service retention jobs, which reduced certain field service costs, and favorable impacts from a lower headcount. These decreases are partially offset by expensing $1.5 million of direct and incremental field service costs on new alarm monitoring agreements obtained in connection with a subscriber move (“Moves Costs”) for the three months ended December 31, 2018. Moves Costs, net, for the three months ended December 31, 2017 of $2.6 million were capitalized to the balance sheet, as discussed further below.

For the twelve months ended December 31, 2018, Ascent’s total cost of services increased 8.2% to $128.9 million. The increase for the twelve months ended December 31, 2018 is primarily due to expensing Moves Costs of $8.6 million for the twelve months ended December 31, 2018. Upon adoption of the new revenue recognition guidance, Topic 606, all Moves Costs are expensed, whereas prior to adoption, certain Moves Costs were capitalized on the balance sheet. Moves Costs capitalized as Subscriber accounts, net, for the twelve months ended December 31, 2017 were $14.4 million. Subscriber acquisition costs in cost of services increased to $14.7 million for the twelve months ended December 31, 2018 as compared to $12.2 million for the twelve months ended December 31, 2017, which is attributable to increased production volume in the direct to consumer sales channel year-over-year. These increases were offset by reduced salary and wage expense due to lower headcount for the full year ended December 31, 2018.

Ascent’s selling, general & administrative ("SG&A") costs for the three months ended December 31, 2018, decreased 33.6% to $20.6 million which included an aggregate of $12.5 million in insurance receivable settlements reached with multiple carriers in connection with the 2017 legal settlement for class action litigation of alleged violation of telemarketing laws. Additionally, subscriber acquisition costs in SG&A decreased to $6.8 million for the three months ended December 31, 2018 as compared to $7.2 million for the three months ended December 31, 2017 on lower production volume in the direct to consumer sales channel. Offsetting these decreases were approximately $1.1 million in expenses associated with the Brinks Home Security rebranding and severance expense of $1.0 million related to a reduction in headcount event at Brinks Home Security. 

Ascent’s SG&A costs for the twelve months ended December 31, 2018, decreased 22.2% to $130.6 million. The decrease in SG&A for the twelve month period is primarily attributable to a $28.0 million legal settlement recognized in the second quarter of 2017 for class action litigation of alleged violation of telemarketing laws and the 2018 recognition of an aggregate of $12.5 million in related insurance receivable settlements as discussed above. Additionally, there were decreases in stock based compensation expense, consulting fees related to Brinks Home Security cost reduction initiatives and general and administrative headcount. These decreases were offset by year over year increases in subscriber acquisition costs associated with the creation of new subscribers at Brinks Home Security. Subscriber acquisition costs in SG&A increased to $33.2 million for the twelve months ended December 31, 2018, as compared to $28.2 million for the twelve months ended December 31, 2017. Other increases in SG&A year-over-year included increased professional legal fees at Ascent, Brinks Home Security rebranding expense and severance expense related to transitioning Ascent executive leadership and a reduction in headcount at Brinks Home Security.

Brinks Home Security SG&A costs for the three and twelve months ended December 31, 2018 were $20.0 million and $118.9 million, respectively, as compared to $29.1 million and $155.9 million, respectively, for the three and twelve months ended December 31, 2017.

Ascent reported a net loss from continuing operations for the three and twelve months ended December 31, 2018 of $382.7 million and $698.0 million, respectively, compared to net loss from continuing operations of $16.0 million and $107.7 million in the prior year periods. The increase in net loss from continuing operations is primarily related to a goodwill impairment of $214.4 million recognized in the second quarter of 2018 and a further goodwill impairment of $349.1 million recognized in the fourth quarter of 2018, combined with the decreases in operating income discussed above.

Brinks Home Security reported a net loss for the three and twelve months ended December 31, 2018 of $376.9 million and $678.8 million, respectively, compared to a net loss of $14.6 million and $111.3 million in the prior year periods.

Ascent’s Adjusted EBITDA increased 3.8% to $75.6 million for the three months ended December 31, 2018. Ascent’s Adjusted EBITDA for the twelve months ended December 31, 2018 decreased 8.3% to $280.8 million. Brinks Home Security’s Adjusted EBITDA increased 3.0% to $76.0 million for the three months ended December 31, 2018. This increase is attributable to reduced subscriber acquisition costs, net of creation revenue, of $7.8 million for the three months ended December 31, 2018, as compared to $9.4 million for the three months ended December 31, 2017 and the increase in net revenue for the three months ended December 31, 2018 as discussed above. Brinks Home Security’s Adjusted EBITDA decreased 7.7% to $289.4 million in the twelve months ended December 31, 2018. This decrease is due to lower revenues, the expensing of Moves Costs, and higher subscriber acquisition costs, net of related revenue. Total subscriber acquisition costs, net of related revenue, for the year ended December 31, 2018 increased to $43.2 million, as compared to $35.5 million for the year ended December 31, 2017. Brinks Home Security’s Adjusted EBITDA as a percentage of net revenue for the three and twelve months ended December 31, 2018 was 56.5% and 53.6%, respectively, as compared to 55.2% and 56.7% in the prior year periods.

Read more

Like this Blog? Share it....

82 Comments

  1. 82 Samsun Rock 19 Apr
    How could i learn about the proper connection of wireless device in windows operating system with simple terms in here http://windowstuts.net/mobile and catch all the related windows wireless setting details in there homepage.
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; }
  2. 81 Ethan Campbell 22 Apr
    Furthermore, it bodes well. At the point when .net was initially Windows just, it seemed well and good to package the structure as a major aspect of Windows to streamline security and fixing. Yet at this point we're cross-plat, packaging a run time as a major aspect of an uk dissertation  OS update is less valuable. Besides the Framework has a great deal of stuff that appeared to be a smart thought however was truly not. An incredible opportunity to dispose of the cruft.     
  3. 80 kiran 30 Apr
    Yes, there has been changes in revenue
  4. 79 Perry Williams 02 May
    Well this is the great information so far i have seen thanks for sharing with us! Calgary Signs Opens a New Window. and Calgary Ticket Printing Opens a New Window.
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
     
  5. 78 Perry Williams 02 May
    Well this is the great information so far i have seen thanks for sharing with us! Calgary Signs Opens a New Window. and Calgary Ticket Printing Opens a New Window.
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
     
  6. 77 Perry Williams 02 May
    Well this is the great information so far i have seen thanks for sharing with us! Calgary Signs Opens a New Window. and Calgary Ticket Printing Opens a New Window.
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
     
  7. 76 walsmith 04 May
    See I take five instructions however I ensure I ask around for teachers which might be cool etc. When you have buddies you could ask around however I additionally try to take a Assignment writing service course lessons campus and a online assignment writing course.
  8. 75 Rose Peter 04 May
    There are few Best Website For Essays and we are one of them and our goal is to becoming world’s most wanted writing company in the world.
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
     
  9. 74 game 13 May
    the game
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
     
  10. 73 Clara 16 May
    I haven't really felt any ammo's were rare at all really even energy? I've got a couple hundred matches under my belt and the only time i am low on energy ammo (if i am using it) Assignment writing service - AssignmentCamp is when i am being real liberal with my devotion

    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
     
  11. 72 jonny 16 May
    I had a match like this one. Both colleagues were thumped out in 2m, I had the RE-45 and the Order Custom Assignment. Went around the structure and thumped out a whole squad, covered up around the edges of the guide for the remainder of the match just captivating adversaries that were locked in with another squad. Got murder pioneer and in the long run won a 2v1 for the success. Around other people the guns are by a long shot a portion of my top picks.
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
     
  12. 71 Jennifer Charles 20 May
    Financial result for the last fiscal is yet to be published. You will also get the swot analysis in any one of the business, Are you facing Alliant Capital Management Debt Collection Harassment? Give us a shout now & take away cellphone harassment from this corporation.
  13. 70 James Cameron 20 May
    Capital is money and quasi money which you have to invest to start of your company. Laborers or workers are also investments but they can quit anytime. HBL Jobs 2019
  14. 69 Karla Morse 21 May
    Educate yourself methodically about any type of investment before you risk your money. You can take courses in investing, real estate and economics at local society colleges. Expert Assignment Writer in UK
  15. 68 Abby Murray 21 May
    An investor relation deals directly with communicating to investors. Corporate PR involves communications to customers. Professional Assignment Writers UK
  16. 67 Assignment Help Online 22 May

    Mostly we face problems while writing assignments is because of lack of writing skills or we don’t know from where I will get proper information for my assignment. To solve this issue many assignment help online service are available in market.
    body.ae-toolbar #lf-button { right: -11px; transform-origin: unset; animation: unset; } body *:focus { outline: 3px solid #3bb79f !important; } body.ae-toolbar .SDKChatContainer { z-index: 990 !important; } body.ae-toolbar .chat-bubble-container { z-index: 980 !important; }
    Mostly we face problems while writing assignments is because of lack of writing skills or we don’t know from where I will get proper information for my assignment. To solve this issue many assignment help online service are available in market.
  17. 66 Dennis Kemp 24 May
    I think FCF is right. I use Net Income + D&A - capex - M&A - change in waged capital to make sure it's more comparable across the board. Your equation seems correct iirc. Some people don't put in M&A, I do for all UK Essays companies that have M&A as part of their management strategy.
  18. 65 ANTHONY fielding 24 May
    This is saying that results are shown on the same basis or for the same period. For example, interim financial statements may at primary care in manhattan show the profitability of the company for the first 6 months of the financial year.
  19. 64 ANTHONY fielding 24 May
    This is saying that results are shown on the same basis or for the same period. For example, interim financial statements may at primary care in manhattan show the profitability of the company for the first 6 months of the financial year.
  20. 63 Micheal Smith 27 May
    Thank you a lot for take the time for such a good information. Stop the collection calls

Comment

  1. RadEditor - HTML WYSIWYG Editor. MS Word-like content editing experience thanks to a rich set of formatting tools, dropdowns, dialogs, system modules and built-in spell-check.
    RadEditor's components - toolbar, content area, modes and modules
       
    Toolbar's wrapper 
     
    Content area wrapper
    RadEditor's bottom area: Design, Html and Preview modes, Statistics module and resize handle.
    It contains RadEditor's Modes/views (HTML, Design and Preview), Statistics and Resizer
    Editor Mode buttonsStatistics moduleEditor resizer
      
    RadEditor's Modules - special tools used to provide extra information such as Tag Inspector, Real Time HTML Viewer, Tag Properties and other.