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ADT(ADT) - 2024 Q3 - Quarterly Results
ADTADT(ADT)2024-10-24 11:00

Financial Performance - Total revenue for Q3 2024 increased by 5% to 1.244billion,withmonitoringandrelatedservicesrevenuegrowingby21.244 billion, with monitoring and related services revenue growing by 2% to 1.078 billion[2][9] - GAAP income from continuing operations was 132million,or132 million, or 0.14 per diluted share, representing a 7% increase year-over-year[10] - Adjusted EBITDA from continuing operations reached 659million,up6659 million, up 6% from the previous year[10][11] - Recurring monthly revenue (RMR) increased by 2% to 359 million, equivalent to an annualized figure of 4.3billion[2][9]−TotalrevenueforQ32024was4.3 billion[2][9] - Total revenue for Q3 2024 was 1,078 million, a 2% increase from 1,053millioninQ32023[24]−Monitoringandrelatedservicesrevenueincreasedby241,053 million in Q3 2023[24] - Monitoring and related services revenue increased by 24% to 1,078 million, while security installation and other services revenue rose by 40% to 166million[24]−OperatingincomeforQ32024was166 million[24] - Operating income for Q3 2024 was 326 million, a 6% increase from 307millioninQ32023[24]−NetincomeforQ32024was307 million in Q3 2023[24] - Net income for Q3 2024 was 127 million, compared to a net loss of 86millioninQ32023,representingasignificantturnaround[24]−Incomefromcontinuingoperationspershare(diluted)was86 million in Q3 2023, representing a significant turnaround[24] - Income from continuing operations per share (diluted) was 0.14, up from 0.13inthesamequarterlastyear[24]−Thecompanyreporteda980.13 in the same quarter last year[24] - The company reported a 98% decrease in loss from discontinued operations, from a loss of 209 million in Q3 2023 to a loss of 5millioninQ32024[24]CashFlowandLiquidity−Year−to−datenetcashprovidedbyoperatingactivitieswas5 million in Q3 2024[24] Cash Flow and Liquidity - Year-to-date net cash provided by operating activities was 1.4 billion, reflecting a 14% increase[2] - Net cash provided by operating activities for the three months ended September 30, 2024, was 498million,upfrom498 million, up from 446 million in the same period of 2023, representing an increase of 11.7%[28] - Free Cash Flow for the nine months ended September 30, 2024, was 1,425million,comparedto1,425 million, compared to 1,246 million for the same period in 2023, indicating a growth of 14.4%[28] - Cash and cash equivalents increased to 205millionasofSeptember30,2024,from205 million as of September 30, 2024, from 149 million at the beginning of the period, marking a rise of 37.5%[28] - Operating cash flow for the three months ended September 30, 2024, was 498million,upfrom498 million, up from 446 million in the same period of 2023, representing an increase of 11.7%[35] - Free Cash Flow for the three months ended September 30, 2024, was 119million,comparedto119 million, compared to 111 million in 2023, reflecting a growth of 7.2%[35] - Adjusted Free Cash Flow for the three months ended September 30, 2024, was 137million,downfrom137 million, down from 148 million in 2023, indicating a decrease of 7.4%[35] Strategic Initiatives - ADT completed a strategic bulk purchase of approximately 49,000 customer accounts for 81million,enhancingeconomiesofscale[5]−ThecompanycompletedthedivestitureofitscommercialbusinessinOctober2023,whichisexpectedtoimpactfutureoperationspositively[22]−Thecompanyisexitingtheresidentialsolarbusiness,withanticipatedcostsandbenefitsstillunderevaluation[22]−Thecompanyisactivelyrepurchasingsharesunderitsauthorizedsharerepurchaseprogram,aimingtoimproveleverageratios[22]−ThecompanyexpectstocompletetheimplementationofanewERPsysteminthesecondhalfof2025,whichwillreduceassociatedcosts[35]DebtandEquity−Long−termdebtremainedstableat81 million, enhancing economies of scale[5] - The company completed the divestiture of its commercial business in October 2023, which is expected to impact future operations positively[22] - The company is exiting the residential solar business, with anticipated costs and benefits still under evaluation[22] - The company is actively repurchasing shares under its authorized share repurchase program, aiming to improve leverage ratios[22] - The company expects to complete the implementation of a new ERP system in the second half of 2025, which will reduce associated costs[35] Debt and Equity - Long-term debt remained stable at 7,525 million as of September 30, 2024, compared to 7,513millionatDecember31,2023[26]−TotaldebtasofSeptember30,2024,was7,513 million at December 31, 2023[26] - Total debt as of September 30, 2024, was 7,721 million, with a Debt to Income from Continuing Operations ratio of 14.6x[47] - Total stockholders' equity rose to 3,897million,upfrom3,897 million, up from 3,789 million, reflecting an increase of 2.85%[26] - The company's LTM Historical Adjusted EBITDA is 2,539million,resultinginanetleverageratioof3.6x[52]−Thedebttoincome(loss)ratiostandsat256.0x,indicatingsignificantleveragerelativetonetincomeof2,539 million, resulting in a net leverage ratio of 3.6x[52] - The debt to income (loss) ratio stands at 256.0x, indicating significant leverage relative to net income of 38 million[50] - Total first lien debt amounts to 8,584million,whiletotaldebtis8,584 million, while total debt is 9,884 million[52] - The net leverage ratio calculated from continuing operations is 2.9x, based on LTM Adjusted EBITDA of 2,553million[48]GuidanceandFutureOutlook−Thecompanytightenedits2024financialguidance,projectingtotalrevenuebetween2,553 million[48] Guidance and Future Outlook - The company tightened its 2024 financial guidance, projecting total revenue between 4.8 billion and 5.0billion[15][16]−Acashdividendof5.0 billion[15][16] - A cash dividend of 0.055 per share was declared, payable on January 9, 2025[14] - The company plans to exclude cash flows related to the solar business from future non-GAAP measures as the business is substantially wound down[32] Ratings and Customer Engagement - The ADT+ app received an average rating of 4.7 stars, making it the highest-rated app in the home security category[6]