Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and nine months ended September 30, 2012. Ascent is a holding company that owns Monitronics International, Inc. (“Monitronics”), one of the nation’s largest and fastest-growing home security alarm monitoring companies.
Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 717,000 residential and commercial customers as of September 30, 2012. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.
- Ascent’s net revenue for the three and nine months ended September 30, 2012 increased 6.5% and 8.2%, respectively, driven by increases in Monitronics’ subscriber accounts and average recurring monthly revenue (“RMR”) per subscriber
- Ascent’s balance sheet remains strong with $229.4 million of cash and marketable securities at the holding company level as of September 30, 2012
- Monitronics’ Adjusted EBITDA 2 for the three and nine months ended September 30, 2012 increased 3.1% and 6.1%, respectively, driven by growth in subscriber accounts and average RMR
- Monitronics subscriber accounts as of September 30, 2012 increased 2.9% to 717,488
- Monitronics average RMR per subscriber increased 2.8% to $38.28
- Monitronics’ acquired 93,000 subscriber accounts from Pinnacle Security on October 25 th for approximately $131 million; purchased accounts represent $4.4 million of RMR
- Increases Monitronics total subscriber base by 13 percent to 810,000 accounts as of September 30, 2012 on a Pro Forma basis
Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “Our results for the third quarter once again illustrate the strength of the Monitronics business model. We are also pleased to have recently completed a significant bulk purchase of accounts, which will provide strong incremental cash flow for the business.
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