ADT(ADT) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2025, was $1,267,491,000, an increase of$77,819,000 compared to $1,189,672,000 in the same period of 2024 [198]. - Recurring Monthly Revenue (RMR) increased to$359,534,000, up $6,260,000 from$353,274,000 in the prior year [198]. - Adjusted EPS for the three months ended March 31, 2025, was $0.21, an increase of$0.02 compared to $0.19 in the same period of 2024 [198]. - Adjusted EBITDA rose to$660,801,000, reflecting an increase of $23,110,000 from$637,691,000 in the prior year [198]. - Monitoring and related services revenue increased by $20,452,000 to$1,083,104,000, driven by higher average prices despite lower volume [198]. - Security installation, product, and other revenue surged by $57,367,000 to$184,387,000, primarily due to a higher mix of professionally installed systems under the outright sales model [198]. Customer Metrics - As of March 31, 2025, the company served approximately 6.4 million security monitoring service subscribers, with revenue break-even achieved in approximately two years for new subscribers [180]. - Gross customer revenue attrition decreased to 12.6% from 13.1% in the prior year, indicating improved customer retention [198]. Debt and Financing - Cash and cash equivalents as of March 31, 2025, totaled $3.7 million, with total debt outstanding amounting to$7.8 billion [221]. - The company has a remaining borrowing capacity of $760 million under its First Lien Revolving Credit Facility as of March 31, 2025 [221]. - The company redeemed$500 million of the First Lien Notes due 2026 in March 2025, resulting in a total redemption price of $506 million [240]. - As of March 31, 2025, approximately 38$500 million of Common Stock, with approximately $208 million remaining as of March 31, 2025 [230][233]. - In March 2025, the company repurchased 20 million shares for approximately$152 million, and an additional 18 million shares for $140 million [232]. - A dividend of$0.055 per share was announced on April 24, 2025, to be paid on July 8, 2025 [237]. Taxation - The effective tax rate for the period was 26.4%, with an income tax expense of $51,032,000 [205]. - Income tax expense for the three months ended March 31, 2024, was$56 million, resulting in an effective tax rate of 25.6% [206]. - The company expects to begin making federal cash tax payments in the second quarter of 2025, with estimated payments fluctuating based on financial results [236]. Cash Flow - The net cash provided by operating activities for the three months ended March 31, 2025, was $466,626, an increase of$102,824 compared to $363,802 in the same period of 2024 [248]. - The company experienced a decrease in cash used in investing activities by$41,811 compared to the prior year period, primarily due to lower expenditures on subscriber system assets [250][252]. - The company reported an increase in net cash used in financing activities by $246,260 compared to the prior period, largely due to increased share repurchases [248][252]. Strategic Initiatives - The company continues to work towards a commitment of$200 million in aggregate purchases under the Google Cloud Agreement Addendum [235]. - In March 2025, the company amended and restated the First Lien Credit Agreement, issuing a new $600 million first lien seven-year term loan facility due in 2032 [238]. - As of March 31, 2025, the company had an outstanding balance of$396 million under the 2020 Receivables Facility after a voluntary prepayment of $23 million during Q1 2025 [242][245].