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ADT Reports Fourth Quarter And Fiscal Year 2013 Results

Stocks in this article: ADT

The ADT Corporation (NYSE: ADT):

FOURTH QUARTER 2013 FINANCIAL HIGHLIGHTS

  • Recurring revenue of $777 million, up 4.7%
  • EBITDA before special items of $431 million, up 7.5%
  • EBITDA margin before special items of 50.9%, up 150 basis points
  • Net income of $96 million, up 2.1%
  • Diluted earnings per share before special items of $0.46, up 7.0%

FISCAL 2013 BUSINESS HIGHLIGHTS

  • Completed successful first year as a standalone, public company
  • Customer base of 6.5 million reaches all time high, up 100 thousand customers
  • ADT Pulse overall take rate at 32% in the fourth quarter, up from 13% last year
  • Small Business recurring revenue growth of 7% for the full year, versus 3% growth in fiscal 2012
  • $1.4 billion of capital returned to shareholders through share repurchase and dividends
  • Acquired Devcon Security and Absolute Security
 

FOURTH QUARTER AND FISCAL YEAR RESULTS

($ in millions, except per share amounts)                    
Q4 2013 Q4 2012 Change FY 2013 FY 2012 Change
Recurring revenue $ 777 $ 742 4.7 % $ 3,041 $ 2,903 4.8 %
Other revenue $ 69 $ 70 -1.4 % $ 268 $ 325 -17.5 %
Total revenue $ 846 $ 812 4.2 % $ 3,309 $ 3,228 2.5 %
Net income $ 96 $ 94 2.1 % $ 421 $ 394 6.9 %
EBITDA before special items 1 $ 431 $ 401 7.5 % $ 1,690 $ 1,609 5.0 %
EBITDA margin before special items 1 50.9 % 49.4 % 150bps 51.1 % 49.8 % 130bps
Diluted earnings per share $ 0.45 $ 0.40 12.5 % $ 1.88 $ 1.67 12.6 %

Diluted earnings per share before special items 1

$ 0.46 $ 0.43 7.0 % $ 1.84 $ 1.74 5.7 %
Diluted weighted-average shares outstanding 213 236 -9.7 % 224 236 -5.1 %
 

The ADT Corporation (NYSE: ADT) today reported diluted earnings per share of $0.45 for the fourth quarter of 2013. Excluding special items for the separation from Tyco, and merger and restructuring costs, diluted earnings per share was $0.46. This compares to earnings per share excluding special items of $0.43 in the fourth quarter of last year. Using the company’s cash tax rate, which factors in the benefit of the company’s net operating losses, diluted earnings per share before special items was $0.75 1.

Recurring revenue, which made up 92% of total revenue in the quarter, was up 4.7%. Recurring revenue growth was driven by 388 thousand gross additions, including the Devcon Security acquisition, and an increase in ending average revenue per customer, which rose 3.7% to $40.31. This was partially offset by customer attrition, which rose 10 basis points sequentially to 13.9%. ADT closed the quarter with 6.5 million customer accounts, 1.5% higher than last year. Total revenue of $846 million increased 4.2% compared to the fourth quarter of 2012.

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