Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and six months ended June 30, 2013. 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 838,000 residential and commercial customers. 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 six months ended June 30, 2013 increased 22.8% and 22.5%, respectively, driven by growth in the number of subscriber accounts at Monitronics and the related increase in monthly recurring revenue
- Ascent’s Adjusted EBITDA 2 for the three and six months ended June 30, 2013 increased 25.9% and 26.5%, respectively
- Ascent’s balance sheet remains strong with $224.0 million of cash as of June 30, 2013
- Monitronics’ Adjusted EBITDA for the three and six months ended June 30, 2013 increased 23.1% and 23.0%
- Monitronics subscriber accounts as of June 30, 2013 increased 17.8% to 838,723
- The growth in subscriber accounts reflects strong performance in the core account generation engine and bulk purchases of approximately 18,200 accounts in May 2013
- Monitronics average monthly revenue per subscriber as of June 30, 2013 increased 5.3% to $39.98
- Monitronics’ proposed acquisition of Security Networks, LLC continues as planned; transaction expected to close in mid-August
- Successfully issued a $103.5 million convertible bond and a $175.0 million high yield bond in July and received commitments on $225.0 million of term loans which will be funded, subject to customary conditions, in conjunction with the closing of the Security Networks acquisition in mid-August
- Acquisition will result in Monitronics eclipsing 1 million subscribers
Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “I am very pleased with the Company’s performance in the second quarter and first half of 2013. Monitronics turned in another strong quarter, delivering over 20% growth in both revenue and Adjusted EBITDA. I am also happy to report that the proposed acquisition of Security Networks continues to progress as expected. In July we took significant steps towards completing the necessary financing to fund the transaction and we remain on target for a mid-August close. Looking ahead, we remain committed to exploring additional accretive acquisition opportunities within the alarm monitoring and related security industry.”
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