Investor Relations

    Ascent Capital Group Announces Financial Results for the Three and Twelve Months Ended December 31, 2016

    by Moni Blogger | Mar 21, 2017

    ENGLEWOOD, Colo., Feb. 28, 2017 -- Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq:ASCMA) has reported results for the three and twelve months ended December 31, 2016. Ascent is a holding company that owns MONI, one of the nation's largest home security alarm monitoring companies.

    Headquartered in the Dallas Fort-Worth area, MONI provides security alarm monitoring services to more than one million residential and commercial customers as of December 31, 2016. MONI's long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the three and twelve months ended December 31, 2016 totaled $140.7 million and $570.4 million, respectively, and net loss for the three and twelve months ended December 31, 2016 totaled $18.8 million and $91.2 million, respectively
    • Ascent's Pre-SAC Adjusted EBITDA, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the three and twelve months ended December 31, 2016 totaled $88.7 million and $360.9 million, respectively
    • MONI's Pre-SAC Adjusted EBITDA for the three and twelve months ended December 31, 2016 totaled $88.9 million and $366.5 million, respectively
    • RMR attrition declined in the twelve months ended December 31, 2016 to 12.2%, versus 13.4% in the twelve months ended December 31, 2015
    • MONI launched its new interactive messaging hub, ASAPer, designed to alert both customers and emergency contacts "as soon as possible" when an alarm is triggered, in the fourth quarter

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, "2016 capped off a very productive year for the business and I am pleased with the hard work Jeff and his team have done executing on our operational objectives.  I remain confident that the strong underlying fundamentals of the business are sound and that Jeff and his team are taking the right steps to drive the performance of MONI and improve long term shareholder value.  The business is well positioned for a solid 2017."

    Jeffery Gardner, President and Chief Executive Officer of MONI said, "I am pleased with our efforts in the fourth quarter and full year. We made significant progress delivering against our key operational initiatives, including reductions in creation costs, improved customer retention metrics and strengthened account growth. Our success is the result of continued improvements in dealer economics; a razor sharp focus on customer service and branding; and ongoing sales, marketing and lead generation support across our entire dealer network. Our pricing strategies are also continuing to bear fruit with RMR attrition declining 120 basis points year over year. Further, our LiveWatch business remains on a solid trajectory with strong revenue growth and average monthly RMR per new customer increasing to $40.

    "Finally, in our ongoing effort to identify new ways to keep our customers safe and offer peace of mind, we recently launched our new interactive messaging hub, ASAPer, that allows alarm users and their emergency contacts to quickly communicate and determine the validity of an alarm. Launched to our entire customer base in the fourth quarter, we expect this service to serve as a real differentiator, helping to reduce false alarms, mitigate the risk of unnecessary emergency dispatches and ultimately keep our customers safer."

    _______________________
    1 Comparisons are year-over-year unless otherwise specified

    Read the full press release.

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    Ascent Capital Group Announces Financial Results for the Three and Nine Months Ended September 30, 2016

    by Moni Blogger | Nov 11, 2016

    ENGLEWOOD, Colo., Nov. 7, 2016 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three and six months ended Sept. 30, 2016. Ascent is a holding company that owns MONI, one of the nation's largest home security alarm monitoring companies.

    Headquartered in Dallas, Texas, MONI provides security alarm monitoring services to more than 1 million residential and commercial customers as of Sept. 30, 2016. MONI's long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the three and nine months ended September 30, 2016 increased 0.6% and 1.9% to $142.8 million and $429.7 million, respectively, and net loss for the three and nine months ended September 30, 2016 totaled $27.0 million and $72.5 million, respectively.
    • Ascent's Pre-SAC Adjusted EBITDA, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the three and nine months ended September 30, 2016 totaled $90.5 million and $272.2 million, respectively
    • MONI's Pre-SAC Adjusted EBITDA for the three and nine months ended September 30, 2016 totaled $92.3 million and 277.6 million, respectively
    • On September 29, 2016, Monitronics began a new era of smart home security, announcing the rebranding of the business as MONI
    • On September 30, 2016, MONI completed a refinancing of its existing Credit Facility

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, "I am pleased with the steps Jeff and his team are taking to strengthen MONI's operating performance and to keep pace in an evolving home security market. The MONI rebranding and the completion of the Credit Facility refinancing are both integral steps in our continued evolution and I am confident that the efforts we are taking today will position the business well for the long term."

    Jeffery Gardner , President and Chief Executive Officer of MONI said, "It was another busy quarter for our business as we continued to make meaningful progress against our operational initiatives. Most notably, we completed a rebranding of the Monitronics business to MONI, placing an even greater emphasis on customer-centric personalization in a changing smart home security market. J.D. Power & Associates also recently ranked MONI highest in overall customer satisfaction, a nod to our continued efforts to provide the best in customer service to those we serve. We also are seeing the benefits of our price increase initiatives across our base with average RMR per subscriber increasing to $42.84, while RMR attrition came down year-over-year 120 basis points to 12.2%. Finally, we successfully completed the refinancing of our credit facility, providing us with greater financial flexibility over the long term."

    1 Comparisons are year-over-year unless otherwise specified.

    Results for the Three Months and Nine Months Ended Sept. 30, 2016

    For the three months ended September 30, 2016, Ascent reported net revenue of $142.8 million, an increase of 0.6%. For the nine months ended September 30, 2016, Ascent reported net revenue of $429.7 million, an increase of 1.9%. The increases in net revenue are attributable to an increase in MONI's average RMR per subscriber to $42.84 as of September 30, 2016 from $41.63 as of September 30, 2015 and the inclusion of a full first quarter's impact of LiveWatch revenue for the nine months ended September 30, 2016.

    Ascent's total cost of services for the three months ended September 30, 2016 increased 2.8% to $29.0 million. The increase for the three months ended September 30, 2016 is attributable to increases in field service costs. Ascent's total cost of services for the nine months ended September 30, 2016 increased 6.4% to $86.2 million.  The increase for the nine months ended September 30, 2016 is attributable to higher cellular service costs, increased lead generation fees at MONI and the inclusion of a full first quarter's impact of LiveWatch's cost of services. LiveWatch's cost of services includes expensed equipment costs associated with the creation of new subscribers of $2.1 million and $6.5 million for three and nine months ended September 30, 2016, respectively, as compared to $2.2 million and $4.7 million for the three and nine months ended September 30, 2015, respectively.

    Ascent's selling, general & administrative ("SG&A") costs for the three months ended September 30, 2016, increased 4.9% to $32.9 million and increased 9.6% to $97.1 million for the nine months ended September 30, 2016. The increases in SG&A are attributable to an increase in new account production at LiveWatch, increased salaries, wages, benefits and rebranding expense at MONI and, for the nine months ended September 30, 2016, the impact of a full first quarter of LiveWatch SG&A costs. Subscriber acquisition costs, which consist of LiveWatch marketing and sales expense, were $4.5 million and $12.0 million in the three and nine months ended September 30, 2016, respectively, as compared to $3.3 million and $7.1 million in the three and nine months ended September 30, 2015, respectively.

    Ascent reported a net loss from continuing operations for the three and nine months ended September 30, 2016 of $27.0 million and $72.5 million, respectively, compared to net loss from continuing operations of $27.3 million and $55.5 million in the respective prior year periods.

    MONI reported a net loss for the three and nine months ended September 30, 2016 of $23.0 million and $59.7 million, respectively, compared to a net loss of $21.4 million and $45.7 million in the prior year periods.

    Ascent's Adjusted EBITDA decreased 1.6% to $84.9 million for the three months ended September 30, 2016 and decreased 2.9% to $257.0 million for the nine months ended September 30, 2016. MONI's Adjusted EBITDA decreased 1.7% to $86.8 million during the three months ended September 30, 2016 and decreased 2.8% to $262.5 million in the nine months ended September 30, 2016. MONI's Adjusted EBITDA as a percentage of net revenue for the three and nine months ended September 30, 2016 was 60.8% and 61.1%, respectively, compared to 62.2% and 64.0% for the three and nine months ended September 30, 2015, respectively. The decline is primarily attributable to the higher expensed creation costs within LiveWatch associated with growth in new RMR production.

    Ascent's Pre-SAC Adjusted EBITDA for the three months ended September 30, 2016 decreased 0.2% to $90.5 million and decreased 0.5% to $272.2 million in the nine months ended September 30, 2016. MONI's Pre-SAC Adjusted EBITDA for the three and nine months ended September 30, 2016 totaled $92.3 million and $277.6 million, compared to $92.6 million and $278.8 million for the three and nine months ended September 30, 2015, respectively. MONI's Pre-SAC Adjusted EBITDA as a percentage of Pre-SAC net revenue for the three and nine months ended September 30, 2016 was 65.2% and 65.1%, respectively, compared to 65.8% and 66.6% in the three and nine months ended September 30, 2015, respectively. For a reconciliation of net loss from continuing operations to Adjusted EBITDA to Pre-SAC Adjusted EBITDA for MONI, please see the Appendix of this release.

     


    Twelve Months Ended Sept. 30

    2016

    2015

    Beginning balance of accounts

    1,091,627

     

    1,056,734

    Accounts acquired

    136,414

    189,590

    Accounts canceled

    (150,091)

    (142,181)

    Canceled accounts guaranteed by dealer and other adjustments (a)

    (18,316) (b)

    (9,516)

    Ending balance of accounts

    1,059,634

    1,091,627

    Monthly weighted average accounts

    1,079,100

    1,078,367

    Attrition rate - Unit

    13.9%

    13.5%

    Attrition rate - RMR (c)

    12.2%

    13.4%

    Core attrition (d)

    13.3%

    12.5%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes an estimated 10.488 accounts included in our Radio Conversion Program that canceled in excess of their expected attrition.

    (c) The recurring monthly revenue ("RMR") of canceled accounts follows the same definition as subscriber unit attrition as noted above. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in that period, divided by the weighted average of RMR for that period.

    (d) Core Attrition reflects the long-term attrition characteristics of MONI's base by excluding the one-time bulk buy of 113,000 accounts from Pinnacle Security in 2012 and 2013.

    MONI's core account portfolio unit attrition rate for the twelve months ended September 30, 2016, which excludes attrition of the Pinnacle Security accounts, was 13.3%, compared to 12.5% for the twelve months ended September 30, 2015. An increase in the number of subscriber accounts reaching the end of their initial contract term contributed to the increase in attrition in the period. Overall unit attrition increased from 13.5% for the twelve months ended September 30, 2015 to 13.9% for the twelve months ended September 30, 2016.  Overall attrition reflects the impact of the Pinnacle Security bulk buys, where MONI purchased approximately 113,000 accounts from Pinnacle Security in 2012 and 2013, which are now experiencing normal end-of-term attrition. We believe core attrition best reflects the long run characteristics of our customer base.

    During the three months ended September 30, 2016 and 2015, MONI acquired 32,570 and 44,776 subscriber accounts, respectively.

    Ascent Liquidity and Capital Resources

    At September 30, 2016, on a consolidated basis, Ascent had $112.1 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    At September 30, 2016, the existing long-term debt includes the principal balance of $1.8 billion under the MONI Senior Notes, Credit Facility term loans, Credit Facility revolver and Ascent's Convertible Notes. On September 30, 2016, MONI entered into an amendment ("Amendment No. 6") with the lenders of its existing senior secured credit agreement dated March 23, 2012, and as amended and restated on April 9, 2015, February 17, 2015, August 16, 2013, March 25, 2013, and November 7, 2012.  Amendment No. 6 provided for, among other things, the issuance of a $1.1 billion six year senior secured Term B-2 loans.   Amendment No. 6 also provides for a new $295.0 million super priority revolver.

    MONI used the net proceeds to retire $403.8 million of its existing Term B loans, which were due March 2018, and $543.1 million of its existing Term B-1 Loan which was due April 2022.  Additionally, the Company retired its $315.0 million revolving credit facility in the amount of $138.9 million.

    The Convertible Notes have an outstanding principal balance of $96.8 million as of September 30, 2016 and mature July 15, 2020. The Senior Notes have an outstanding principal balance of $585.0 million as of September 30, 2016 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $1.1 billion as of September 30, 2016 and requires principal payments of approximately $2.8 million per quarter with the remaining amount becoming due on September 30, 2022.  As of September 30, 2016, the Credit Facility revolver has an outstanding balance of $48.4 million and becomes due on September 30, 2021.

    Changes to the Board of Directors

    Ascent announced that it has named Jeffery Gardner , Executive Vice President at Ascent Capital Group and President and Chief Executive Officer of MONI, to its Board of Directors, effective November 4, 2016. The Company also announced that Rana Kashyap has resigned from the Company's Board of Directors, effective immediately. Mr. Kashyap joined Ascent's Board in March of 2016, with his term originally expiring at the Company's 2017 Annual Meeting of Stockholders.

    Bill Fitzgerald , Ascent's Chairman and Chief Executive Officer commented, "I am thrilled to have Jeff join the Ascent Board of Directors.  As CEO of MONI, Jeff has proven himself to be a tremendous leader. In addition to driving operational efficiencies in key areas of the business, he is continually identifying opportunities that serve to position MONI as a leading player in the evolving smart home security market.  I look forward to Jeff's continued contributions."

    Mr. Gardner joined MONI as CEO in August, 2015, bringing with him more than 25 years of experience in the telecommunications industry. Mr. Gardner currently serves on the Board of Directors of Qorvo, a provider of innovative RF solutions and CalAmp, a provider of wireless products, services and solutions.

    Mr. Fitzgerald continued, "On behalf of the Board of Directors, I would like to thank Mr. Kashyap for his contribution and service to the company and we look forward to his continued support."

    Mr. Kashyap commented, "During my time as a member of Ascent's Board, MONI has made significant progress to create value for shareholders. Between completing an attractive refinancing, moderating creation multiples and executing on several new initiatives to support future growth, I am pleased with the current direction of the business and have full confidence in the management team going forward. As a result, I have decided now is an appropriate time to resign from my duties as a Director of Ascent and look forward to my continued involvement as a supportive shareholder."

    Conference Call

    Ascent hosted a call on Monday, Nov. 7, 2016 at 5 p.m. ET. A replay of the call can be accessed through Dec. 7, 2016 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 7713097.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, including development of and access to multiple sales channels, market potential and expansion, consumer demand for interactive and home automation services, account creation and related costs, subscriber attrition, anticipated account generation at LiveWatch, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent and/or MONI, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (NASDAQ:ASCMA) is a holding company that owns 100 percent of its operating subsidiary, MONI, and through MONI, LiveWatch Security, LLC. Ascent also retains ownership of certain commercial real estate assets. MONI, headquartered in the Dallas Fort-Worth area, secures more than one million residential customers and commercial client accounts with monitored home and business security system services. MONI is supported by the nation's largest network of independent Authorized Dealers, providing products and support to customers in the U.S., Canada and Puerto Rico.  LiveWatch Security, LLC ®, is a Do-It-Yourself ("DIY") home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. For more information on Ascent, see
     http://ascentcapitalgroupinc.com/

    1 Comparisons are year-over-year unless otherwise specified.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com

     
    Go comment!

    Ascent Capital Group Announces Financial Results for the Three and Six Months Ended June 30, 2016

    by Moni Blogger | Aug 09, 2016

    Englewood, CO – Aug. 9, 2016 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three and six months ended June 30, 2016. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"). Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to nearly 1.1 million residential and commercial customers as of March 31, 2016. Monitronics' long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the 12 months ended June 30, 2016 increased 1.5%, to $143.3 million.
    • Ascent's Pre-SAC Adjusted EBITDA*, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the three months ended June 30, 2016, increased 0.9% to $91.8 million.
    • Monitronics Pre-SAC Adjusted EBITDA* for the three months ended June 30, 2016, totaled $93.4 million, flat with the year ago period.
    • Monitronics announced new exclusive co-marketing relationships with AARP and AAA Alliance Club.
    • Delivered meaningful improvements in dealer economics through reductions in certain costs.

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “The business performed consistent with expectations in the quarter and I continue to be pleased with Jeff’s progress with the business; building out his team, refining his operating goals and strategies, and driving improved performance metrics.

    “During the quarter Ascent purchased 389,179 shares or 3.2% of our equity, evidencing our continued belief in the long range prospects of the business.”

    Jeffery Gardner, President and Chief Executive Officer of Monitronics, said, “We continued to execute against our operational objectives in the second quarter, further strengthening our free cash flow profile and delivering meaningful improvements in dealer economics through continued reductions in creation costs. We also made great strides in lead generation opportunities, most notably with Monitronics announcing an exclusive partnership with the AAA Alliance Club as well as being named the exclusive AARP-branded provider for professionally installed residential security systems. Our LiveWatch business also continues to scale nicely, delivering solid growth at lower creation multiples. Finally, we continue to place a unique focus on providing the highest levels of customer service and also made several strategic hires in the first half of the year that add depth and experience to our team. I remain confident that we are taking the right steps through the initiatives we are implementing and the foundation we have already built, there is great opportunity ahead.”

    1 Comparisons are year-over-year unless otherwise specified.

    Results for the Three Months Ended June 30, 2016

    For the three months ended June 30, 2016, Ascent reported net revenue of $143.7 million, an increase of 1.5%. For the six months ended June 30, 2016, Ascent reported net revenue of $286.9 million, an increase of 2.5%. The increases in net revenue are attributable to an increase in Monitronics’ average RMR per subscriber to $42.70 as of June 30, 2016 and the inclusion of a full first quarter’s impact of LiveWatch revenue for the six months ended June 30, 2016.

    Ascent’s total cost of services for the three months ended June 30, 2016 was flat at $27.6 million. Ascent’s total cost of services for the six months ended June 30, 2016 increased 8.2% to $57.1 million.  The increase for the six months ended June 30, 2016 is attributable to higher cellular service costs, increased lead generation fees at Monitronics and the inclusion of a full first quarter’s impact of LiveWatch’s cost of services. LiveWatch's cost of services includes expensed equipment costs associated with the creation of new subscribers of $2.1 million and $4.3 million for three and six months ended June 30, 2016, respectively, as compared to $1.8 million and $2.5 million for the three and six months ended June 30, 2015, respectively.

    Ascent’s selling, general & administrative ("SG&A") costs for the three months ended June 30, 2016, increased 8.2% to $32.1 million and increased 12.2% to $64.3 million for the six months ended June 30, 2016. The increases in SG&A is attributable to higher subscriber acquisition costs incurred at LiveWatch, increased salaries, wages and benefits at Monitronics and, for the six months ended June 30, 2016, the impact of a full first quarter of LiveWatch SG&A costs not related to account creation. Subscriber acquisition costs, which consist of LiveWatch marketing and sales expense, were $3.7 million and $7.5 million in the three and six months ended June 30, 2016, respectively, as compared to $2.8 million and $3.8 million in the three and six months ended June 30, 2015, respectively.

    Ascent’s Adjusted EBITDA decreased 0.6% to $87.0 million for the three months ended June 30, 2016 and decreased 3.5% to $172.1 million for the six months ended June 30, 2016. Monitronics’ Adjusted EBITDA decreased 1.5% to $88.6 million during the three months ended June 30, 2016 and decreased 3.3% to $175.7 million in the six months ended June 30, 2016. Monitronics' Adjusted EBITDA as a percentage of net revenue for the three and six months ended June 30, 2016 was 61.7% and 61.2%, respectively, compared to 63.6% and 64.9% for the three and six months ended June 30, 2015, respectively. The decline is primarily attributable to the higher expensed creation costs within LiveWatch.

    Ascent's Pre-SAC Adjusted EBITDA for the three months ended June 30, 2016 increased 0.9% to $91.8 million and decreased 0.6% to $181.7 million in the six months ended June 30, 2016. Monitronics' Pre-SAC Adjusted EBITDA for the three and six months ended June 30, 2016 totaled $93.4 million and $185.3 million, compared to $93.4 million and $186.3 million for the three and six months ended June 30, 2015, respectively. Monitronics' Pre-SAC Adjusted EBITDA as a percentage of Pre-SAC net revenue for the three and six months ended June 30, 2016 was 65.5% and 65.1%, respectively, compared to 66.6% and 66.9% in the three and six months ended June 30, 2015, respectively. For a reconciliation of Adjusted EBITDA to Pre-SAC Adjusted EBITDA for Monitronics, please see the Appendix of this release.

    Ascent reported a net loss from continuing operations for the three and six months ended June 30, 2016 of $22.2 million and $45.4 million, respectively, compared to net loss from continuing operations of $18.5 million and $28.2 million in the respective prior year periods.

    Monitronics reported a net loss for the three and six months ended June 30, 2016 of $16.5 million and $36.7 million, respectively, compared to a net loss of $16.0 million and $24.3 million in the prior year periods.

    The table below presents subscriber data for the twelve months ended June 30, 2016 and 2015:


    Twelve Months Ended June 30

    2016

    2015

    Beginning balance of accounts

    1,092,083

    1,055,701

    Accounts acquired

    148,620

    188,416

    Accounts canceled

    (150,703)

    (142,951)

    Canceled accounts guaranteed by dealer and other adjustments (a)

    (15,078) (b)

    (9,083)

    Ending balance of accounts

    1,074,922

    1,092,083

    Monthly weighted average accounts

    1,085,600

    1,069,860

    Attrition rate - Unit

    13.9%

    13.4%

    Attrition rate - RMR (c)

    12.5%

    13.2%

    Core attrition (d)

    13.2%

    12.6%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes an estimated 7,200 accounts included in our Radio Conversion Program that canceled in excess of their expected attrition.

    (c) The recurring monthly revenue ("RMR") of canceled accounts follows the same definition as subscriber unit attrition as noted above. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in that period, divided by the weighted average of RMR for that period.

    (d) Core Attrition reflects the long-term attrition characteristics of Monitronics base by excluding the one-time bulk buy of 113,000 accounts from Pinnacle Security in 2012 and 2013.

    Monitronics’ core account portfolio unit attrition rate for the twelve months ended June 30, 2016, which excludes attrition of the Pinnacle Security accounts and 2G cancellations, was 13.2%, compared to 12.6% for the twelve months ended June 30, 2015. Overall unit attrition increased from 13.4% for the twelve months ended June 30, 2015 to 13.9% for the twelve months ended June 30, 2016. The increase in attrition is primarily the result of an increase in the number of subscriber accounts reaching the end of their initial contract term in the period.  Overall attrition reflects the impact of the Pinnacle Security bulk buys, where Monitronics purchased approximately 113,000 accounts from Pinnacle Security in 2012 and 2013, which are now experiencing normal end-of-term attrition. We believe core attrition best reflects the long run characteristics of our customer base.

    During the three months ended June 30, 2016 and 2015, Monitronics acquired 37,284 and 40,742 subscriber accounts, respectively. Accounts acquired for the three months ended June 30, 2016 reflect bulk buys of approximately 6,300 accounts.

    Ascent Liquidity and Capital Resources

    At June 30, 2016, on a consolidated basis, Ascent had $86.3 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    At June 30, 2016, the existing long-term debt includes the principal balance of $1.8 billion under the Monitronics’ Senior Notes, Credit Facility term loans, Credit Facility revolver and Ascent’s Convertible Notes. The Convertible Notes have an outstanding principal balance of $96.8 million as of June 30, 2016 and mature July 15, 2020. The Senior Notes have an outstanding principal balance of $585.0 million as of June 30, 2016 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $946.9 million as of June 30, 2016 and require principal payments of approximately $1.4 million per quarter with $403.8 million becoming due on March 23, 2018 and the remaining amount becoming due April 9, 2022. As of June 30, 2016, the Credit Facility revolver has an outstanding balance of $154.5 million which becomes due on December 22, 2017 and unused availability of $160.5 million.

    Conference Call

    Ascent hosted a call on Monday, Aug. 9, 2016 at 10 a.m. ET. A replay of the call can be accessed through Sept. 9, 2016 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 59285579.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, including development of and access to multiple sales channels, market potential and expansion, consumer demand for interactive and home automation services, account creation and related costs, subscriber attrition, anticipated account generation at LiveWatch, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent and/or Monitronics, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (Nasdaq:ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc., and through Monitronics, LiveWatch Security, LLC. Ascent also retains ownership of certain commercial real estate assets. Monitronics, headquartered in Dallas, TX, is the nation's second largest home security alarm monitoring company, providing security alarm monitoring services to more than one million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. LiveWatch Security, LLC ®, is a Do-It-Yourself ("DIY") home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. For more information on Ascent, see http://ascentcapitalgroupinc.com/

    1 Comparisons are year-over-year unless otherwise specified.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com

    Go comment!

    Ascent Capital Group Announces Financial Results for the Three Months Ended March 31, 2016

    by Moni Blogger | May 09, 2016

    Englewood, CO – May 9, 2016 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three months ended March 31, 2016. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"). Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to nearly 1.1 million residential and commercial customers as of March 31, 2016. Monitronics' long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the 12 months ended March 31, 2016 increased 3.5%, to $143.3 million.
    • Ascent's Pre-SAC Adjusted EBITDA*, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the three months ended March 31, 2016, totaled $89.9 million.
    • Monitronics Pre-SAC Adjusted EBITDA* for the three months ended March 31, 2016, totaled $91.9 million.
    • Delivered meaningful improvements in dealer economics through reductions in certain costs.

    *LiveWatch is a direct-to-consumer business, and as such recognizes certain revenue and expenses associated with subscriber acquisition (subscriber acquisition costs, or "SAC"). This is in contrast to Monitronics, which capitalizes payments to dealers to acquire accounts.  Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base.  Please see the Appendix to this release for additional information about the non-GAAP measures included herein.

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, "I am pleased with the progress we made in the first quarter executing against our operational objectives. I am as confident as ever that the strong underlying fundamentals of the business are sound and that Jeff and his team are taking the right actions that will serve to create value for our shareholders."

    Jeffery Gardner, President and Chief Executive Officer of Monitronics, said, "Monitronics is off to a solid start in 2016. Execution by our team strengthened our free cash flow profile and helped drive improvements in our operational performance. Notably, we made meaningful progress in improving the economics of our dealer relationships through reductions in creation costs and streamlining our operations in Dallas.

    "We also continued to identify initiatives that we believe will enhance customer satisfaction and ultimately lead to reduced attrition in the long term. Finally, our focus on customer service continues to drive service levels to all-time highs at both the LiveWatch and Monitronics call centers. I am excited about the opportunities ahead and remain confident that the operational initiatives we have implemented will strengthen Monitronics over the long term."

    1 Comparisons are year-over-year unless otherwise specified.

    Results for the Three Months Ended March 31, 2016

    For the three months ended March 31, 2016, Ascent reported net revenue of $143.3 million, an increase of 3.5%. The increase in net revenue is primarily attributable to the inclusion of a full quarter's impact of LiveWatch revenue and an increase in Monitronics' average RMR per subscriber to $42.17 as of March 31, 2016.

    Ascent's total cost of services for the three months ended March 31, 2016 increased 17.1% to $29.5 million. $2.2 million of the increase is attributable to the inclusion of a full quarter's impact of LiveWatch's cost of services. LiveWatch's cost of services includes expensed equipment costs associated with the creation of new subscribers of $2.3 million and $643,000 for three months ended March 31, 2016 and 2015, respectively. The increase also reflects higher cellular and field service costs at Monitronics related to the increase in the number of subscribers with interactive and home automation services.

    Ascent's selling, general & administrative ("SG&A") costs for the three months ended March 31, 2016, increased 16.4% to $32.1 million. The primary driver of the increase in SG&A expense for the three months ended March 31, 2016 is attributable to $3.7 million of LiveWatch marketing and sales expense related to the creation of new subscribers. LiveWatch SG&A also includes the accrual of $900,000 and $519,000 for the three months ended March 31, 2016 and 2015, respectively, related to certain contingent bonuses payable in the future to key members of LiveWatch management in accordance with their employment agreements. The increase in SG&A is also attributable to increased salaries, wages, and benefits at Monitronics, as compared to the prior year. In connection with certain cost cutting initiatives, Monitronics executed a reduction in force in March 2016. This action resulted in one-time termination benefits of $245,000 being expensed for the three months ended March 31, 2016.

    Ascent's Adjusted EBITDA decreased 6.3% to $85.0 million and Monitronics' Adjusted EBITDA decreased 5.1% to $87.0 million during the three months ended March 31, 2016. Monitronics' Adjusted EBITDA as a percentage of revenue was 60.7% in the first quarter of 2016, compared to 66.2% for the three months ended March 31, 2015. The decline is primarily attributable to the higher expensed creation costs within LiveWatch.

    Ascent's Pre-SAC Adjusted EBITDA for the three months ended March 31, 2016 decreased 2.1% to $89.9 million. Monitronics' Pre-SAC Adjusted EBITDA decreased 1.0% to $91.9 million for the three months ended March 31, 2016. Monitronics' Pre-SAC Adjusted EBITDA as a percentage of Pre-SAC net revenue for the three months ended March 31, 2016 was 64.6%. For a reconciliation of Adjusted EBITDA to Pre-SAC Adjusted EBITDA for Monitronics, please see the Appendix of this release.

    Ascent reported a net loss from continuing operations for the three months ended March 31, 2016 of $23.2 million, compared to net loss from continuing operations of $9.7 million in the prior year period.

    Monitronics reported a net loss for the three months ended March 31, 2016 of $20.2 million compared to a net loss of $8.3 million in the prior year period.

    The table below presents subscriber data for the twelve months ended March 31, 2016 and 2015:


    Twelve Months Ended March 31

    2016

    2015

    Beginning balance of accounts

    1,090,612

    1,046,785

    Accounts acquired

    152,078

    190,525

    Accounts canceled

    (148,787)

    (139,605)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a)

    (13,177) (b)

    (7,093) (c)

    Ending balance of accounts

    1,080,726

    1,090,612

    Monthly weighted average accounts

    1,089,346

    1,060,206

    Attrition rate - Unit

    (13.7)%

    (13.2)%

    Attrition rate - RMR (d)

    (13.4)%

    (13.0)%

    Core attrition (e)

    (12.9)%

    (12.6)%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes an estimated 3,170 accounts included in our Radio Conversion Program that canceled in excess of their expected attrition.

    (c) Includes a favorable adjustment of 1,101 accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014.

    (d) The recurring monthly revenue ("RMR") of canceled accounts follows the same definition as subscriber unit attrition as noted above. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in that period, divided by the weighted average of RMR for that period.

    (e) Core Attrition reflects the long-term attrition characteristics of Monitronics base by excluding the one-time bulk buy of 113,000 accounts from Pinnacle Security in 2012 and 2013.

    Monitronics' core account portfolio unit attrition rate for the twelve months ended March 31, 2016 was 12.9%, compared to 12.6% for the twelve months ended March 31, 2015. Overall unit attrition increased from 13.2% for the twelve months ended March 31, 2015 to 13.7% for the twelve months ended March 31, 2016. The increase in attrition is primarily associated with approximately 113,000 accounts acquired in the Pinnacle Security bulk purchases in 2012 and 2013, which are now experiencing normal end-of-term attrition. We believe core attrition best reflects the long run characteristics of our customer base.

    During the three months ended March 31, 2016 and 2015, Monitronics acquired 29,211 and 66,074 subscriber accounts, respectively. Accounts acquired for the three months ended March 31, 2016 reflect bulk buys of approximately 400 accounts. Accounts acquired for the three months ended March 31, 2015 include approximately 1,100 of bulk buys and 31,919 accounts from the LiveWatch Acquisition in February 2015.

    Ascent Liquidity and Capital Resources

    At March 31, 2016, on a consolidated basis, Ascent had $120.2 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    At March 31, 2016, the existing long-term debt includes the principal balance of $1.8 billion under the Monitronics' Senior Notes, Credit Facility term loans, and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principal balance of $96.8 million as of March 31, 2016 and mature July 15, 2020. The Senior Notes have an outstanding principal balance of $585.0 million as of March 31, 2016 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $948.3 million as of March 31, 2016 and require principal payments of approximately $1.4 million per quarter with $403.8 million becoming due on March 23, 2018 and the remaining amount becoming due April 9, 2022. The Credit Facility revolver has an outstanding balance of $155.2 million as of March 31, 2016, unused availability of $159.8 million and becomes due on December 22, 2017.

    Conference Call

    Ascent hosted a call on Monday, May 9, 2016 at 10 a.m. ET. A replay of the call can be accessed through June 9, 2016 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 2663456.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, consumer demand for interactive and home automation services, the anticipated benefits of the LiveWatch acquisition, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (Nasdaq:ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc., and through Monitronics, LiveWatch Security, LLC. Ascent also retains ownership of certain commercial real estate assets. Monitronics, headquartered in Dallas, TX, is the nation's second largest home security alarm monitoring company, providing security alarm monitoring services to more than one million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. LiveWatch Security, LLC ®, is a Do-It-Yourself ("DIY") home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. For more information on Ascent, see http://ascentcapitalgroupinc.com/

    1 Comparisons are year-over-year unless otherwise specified.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com



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    Ascent Capital Group Announces Financial Results for the Three Months and Full Year Ended Dec. 31, 2015

    by Moni Blogger | Feb 29, 2016

    Englewood, CO – Feb. 29, 2016 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three and full year ended Dec. 31, 2015. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"). Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to nearly 1.1 million residential and commercial customers as of Dec. 31, 2015. Monitronics' long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the 12 months ended Dec. 31, 2015 increased 4.4%.
    • Ascent's Pre-SAC Adjusted EBITDA*, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the 12 months ended Dec. 31, 2015, increased 2.0%.
    • Monitronics Pre-SAC Adjusted EBITDA* for the 12 months ended Dec. 31, 2015, increased 1.9%.
    • Monitronics' subscriber accounts as of Dec. 31, 2015 increased 2.9% to 1,089,535.
    • Monitronics' unit attrition as of Dec. 31, 2015, increased from 12.9% at Dec. 31, 2014.
      • Monitronics' core account portfolio unit attrition** decreased to 12.7% as of Dec. 31, 2015, from 12.8% at Dec. 31, 2014.

    *LiveWatch is a direct-to-consumer business, and as such recognizes certain revenue and expenses associated with subscriber acquisition (subscriber acquisition costs, or "SAC"). This is in contrast to Monitronics, which capitalizes payments to dealers to acquire accounts.  Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base.  Please see the Appendix to this release for additional information about the non-GAAP measures included herein.

    ** Core account portfolio unit attrition excludes the impact of 2G disconnects and the over 113,000 accounts acquired in the Pinnacle Security bulk buys in 2012 and 2013 which were concentrated in 36, 42 and 60 month contracts originated in 2011 and 2012 and are now experiencing normal end-of-term attrition that is temporarily inflating attrition levels.

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, "The business performed in line with expectations in the fourth quarter and full year 2015. I am very pleased with the progress Jeff has made with the business in his short time with us, implementing operational changes at both Monitronics and LiveWatch while building his leadership team. I'm very optimistic about the effect these changes will have on the businesses in 2016."

    Jeffery Gardner, President and Chief Executive Officer of Monitronics, said, “The strong underlying fundamentals of the Monitronics business remain intact, but we are also aware that there are certain initiatives that must be undertaken so that we are in a better position to achieve strong returns for shareholders.

    “As such, we have identified areas where we can strengthen our operating performance, improve our free cash flow profile and manage our balance sheet. These include cost cutting measures, building our lead generation opportunities through partnerships like the recently announced agreement with Consolidated Telephone and implementing more effective marketing practices. We are also taking proactive steps to better manage our attrition, including deploying technology in our call centers that helps to more accurately identify the attributes of customers most likely to churn, ensuring that we are in front of these customers faster and more efficiently.”

    "With our renewed focus on strong free cash flow generation, I am confident that we have the right programs in place to meaningfully improve creation costs and reduce operating costs over time. I believe that these efforts will serve to build an even stronger Monitronics and ultimately drive long term shareholder value."

    Results for the Three and 12 Months Ended Dec. 31, 2015

    For the three months ended December 31, 2015, Ascent reported net revenue of $141.6 million, an increase of 4.2%. For the twelve months ended Dec. 31, 2015, net revenue increased 4.4% to $563.4 million. The increase in net revenue is primarily attributable to increases in Monitronics' subscriber accounts and average recurring monthly revenue ("RMR") per subscriber. Monitronics' subscriber accounts increased 2.9% for the twelve months ended December 31, 2015, reflecting the acquisition of over 157,000 accounts through the Monitronics and LiveWatch subscriber channels, as well as an additional 31,919 accounts purchased in the LiveWatch acquisition of Feb. 2015. Monitronics' average RMR per subscriber increased to $41.92 as of Dec. 31, 2015. Excluding accounts acquired through the LiveWatch acquisition, which had an average RMR of $28.46, Monitronics' average RMR per subscriber was $42.33 as of Dec. 31, 2015.

    Ascent's total cost of services for the three and twelve months ended Dec. 31, 2015 increased 19.3% and 17.8% to $29.2 million and $110.2 million, respectively. This increase is attributable to the inclusion of LiveWatch, which expenses equipment costs associated with new customers. The increase is also attributable to the growth in the number of HomeTouch® customers and service costs for upgrades to customer systems. HomeTouch® services include home automation monitored across the cellular network.

    Ascent's selling, general & administrative ("SG&A") costs for the three and 12 months ended Dec. 31, 2015, increased 33.8% and 18.9% to $32.8 million and $121.4 million, respectively. The primary driver of the increase in SG&A expense in the three and 12 months ended Dec. 31, 2015 is attributable to $4.2 million and $11.2 million, respectively, of LiveWatch marketing and sales expense related to the creation of new subscribers. LiveWatch SG&A also includes the accrual of $844,000 and $3.9 million for the three and 12 months ended Dec. 31, 2015, respectively, related to certain contingent bonuses payable in the future to key members of LiveWatch management in accordance with their employment agreements. SG&A for the twelve months ended Dec. 31, 2015 also includes one-time costs incurred by Monitronics of $946,000 related to professional services rendered in connection with the LiveWatch acquisition and $720,000 of costs incurred to relocate Monitronics' headquarters in July 2015. These increases were partially offset by decreases in Monitronics' staffing and operating costs as a result of the completion of the Security Networks integration in April 2014. SG&A for the 12 months ended Dec. 31, 2014 includes approximately $2.2 million of one-time professional fees rendered in relation to the Security Networks' integration.

    Ascent's Adjusted EBITDA decreased 6.5% to $83.2 million during the quarter and decreased 2.0% to $347.8 million for the year ended December 31, 2015. Monitronics' Adjusted EBITDA decreased 6.5% to $84.9 million during the quarter and decreased 2.0% to $354.8 million for the year ended December 31, 2015. Monitronics' Adjusted EBITDA as a percentage of revenue was 60.0% in the fourth quarter of 2015, compared to 66.8% for the three months ended December 31, 2014. Monitronics' Adjusted EBITDA as a percentage of revenue for the year ended December 31, 2015 was 63.0%, compared to 67.1% for the prior year period; the decline primarily attributable to the higher expensed creation costs within LiveWatch.

    Monitronics capitalizes payments to dealers to acquire accounts. In contrast, LiveWatch, a direct-to-consumer business, recognizes certain revenue and expenses associated with the acquisition of subscribers (subscriber acquisition costs, or "SAC") in the current period. Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base.

    Ascent's Pre-SAC Adjusted EBITDA for the three months ended Dec. 31, 2015 decreased 0.5% to $88.5 million and increased 2.0% to $362.0 million for the twelve months ended Dec. 31, 2015. Monitronics' Pre-SAC Adjusted EBITDA decreased 0.6% to $90.2 million for the three months ended Dec. 31, 2015 and increased 1.9% to $369.1 million for the twelve months ended Dec. 31, 2015. Monitronics' Pre-SAC Adjusted EBITDA as a percentage of Pre-SAC Revenue for the three and twelve months ended Dec. 31, 2015 was 64.3% and 66.0%, respectively. For a reconciliation of Adjusted EBITDA to Pre-SAC Adjusted EBITDA for Monitronics, please see appendix of this release.

    Ascent reported a net loss from continuing operations for the three and twelve months ended Dec. 31, 2015 of $30.7 million and $86.2 million, compared to net losses from continuing operations of $6.6 million and $37.4 million in the same periods in 2014.

    Monitronics reported a net loss for the three months ended Dec. 31, 2015 of $26.7 million compared to a net loss of $5.0 million in the prior year period. For the year ended Dec. 31, 2015, Monitronics reported a net loss of $72.4 million, compared to $29.7 million in the prior year period.

    The table below presents subscriber data for the twelve months ended Dec. 31, 2015 and 2014:


    Twelve Months Ended Dec. 31

    2015

    2014

    Beginning balance of accounts

    1,058,962

    1,046,155

    Accounts acquired

    188,941

    156,225

    Accounts canceled

    (147,923)

    (135,842)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a)

    (10,445)

    (7,576) (b)

    Ending balance of accounts

    1,089,535

    1,058,962

    Monthly weighted average accounts

    1,086,071

    1,052,492

    Attrition rate - Unit

    (13.6)%

    (12.9)%

    Attrition rate - RMR (c)

    (12.7)%

    (12.8)%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes a net increase of 1,101 accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014.

    (c) The recurring monthly revenue ("RMR") of canceled accounts follows the same definition as subscriber unit attrition as noted above. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in that period, divided by the weighted average of RMR for that period.

    (d) The increase in the attrition rate presented above is primarily associated with over 113,000 accounts acquired in the Pinnacle Security bulk buys in 2012 and 2013 which were concentrated in 36, 42 and 60 month contracts originated in 2011 and 2012 and are now experiencing normal end-of-term attrition. Excluding these bulk buys, attrition for the twelve months ended December 31, 2015 was 12.7%. Please see the presentation posted on http://ascentcapitalgroupinc.com/ for more information related to the difference between attrition and core attrition.

    Monitronics' core account portfolio unit attrition rate for the 12 months ended December 31, 2015 was 12.7%, compared to 12.8% for the twelve months ended December 31, 2014. Overall unit attrition increased from 12.9% for the twelve months ended December 31, 2014 to 13.6% for the twelve months ended December 31, 2015. The increase in attrition is primarily associated with over 113,000 accounts acquired in the Pinnacle Security bulk purchases in 2012 and 2013, which are now experiencing normal end-of-term attrition. We believe core attrition best reflects the long run characteristics of our customer base.

    During the three months ended Dec. 31, 2015 and 2014, Monitronics acquired 37,349 and 37,998 subscriber accounts, respectively. During the years ended Dec. 31, 2015 and 2014, Monitronics acquired 188,941 and 156,225 subscriber accounts, respectively. Accounts acquired for the year ended Dec. 31, 2015 included 31,919 accounts from the LiveWatch acquisition in Feb. 2015. Acquired contracts for the years ended Dec. 31, 2015 and 2014 also include approximately 2,000 and 8,300 accounts, respectively, purchased in bulk buys.

    Ascent Liquidity and Capital Resources

    At Dec. 31, 2015, on a consolidated basis, Ascent had $92.7 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    At Dec. 31, 2015, the existing long-term debt includes the principal balance of $1.8 billion includes Monitronics' Senior Notes, Credit Facility, and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principal balance of $96.8 million as of December 31, 2015 and mature July 15, 2020. The Senior Notes have an outstanding principal balance of $585.0 million as of December 31, 2015 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $949.7 million as of December 31, 2015 and require principal payments of approximately $1.4 million per quarter with $403.8 million becoming due on March 23, 2018 and the remaining amount becoming due April 9, 2022. The Credit Facility revolver has an outstanding balance of $133.3 million as of Dec. 31, 2015 out of a capacity of $315 million and becomes due on Dec. 22, 2017.

    During the year ended Dec. 31, 2015, the Company repurchased 940,729 shares of its Series A common stock, or 7.0% of shares outstanding, pursuant to the Share Repurchase Authorizations for a total of approximately $30.0 million. These repurchased shares were all canceled and returned to the status of authorized and unissued. As of December 31, 2015 the remaining availability under the Company's Share Repurchase Authorizations enable the Company to purchase up to an aggregate of approximately $9.9 million of Series A and Series B Common Stock. The Company also repurchased $6.7 million of face value of its Convertible notes representing 6.5% of the total issued.

    Conference Call

    Ascent hosted a call on Monday, Feb. 29, 2016 at 4:30 PM ET. A replay of the call can be accessed through March 29, 2016 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 55990068.

    This call will also be available as a live webcast which can be accessed at Ascent's Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, consumer demand for interactive and home automation services, the anticipated benefits of the LiveWatch acquisition, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (Nasdaq:ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc., and through Monitronics, LiveWatch Security, LLC. Ascent also retains ownership of certain commercial real estate assets. Monitronics, headquartered in Dallas, TX, is the nation's second largest home security alarm monitoring company, providing security alarm monitoring services to more than one million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. LiveWatch Security, LLC ®, is a Do-It-Yourself ("DIY") home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. For more information on Ascent, see http://ascentcapitalgroupinc.com/

    1 Comparisons are year-over-year unless otherwise specified.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com



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    Ascent Capital Group Announces Financial Results For The Three and Nine Months Ended Sept. 30, 2015

    by Moni Blogger | Nov 10, 2015

    Englewood, CO – November 9, 2015 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three and nine months ended Sept. 30, 2015. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"), the nation's second-largest home security alarm monitoring company.


    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to nearly 1.1 million residential and commercial customers as of Sept. 30, 2015. Monitronics' long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the three and nine months ended Sept. 30, 2015 increased 4.3% and 4.5%, respectively.
    • Ascent's Pre-SAC Adjusted EBITDA*, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the three and six months ended Sept.  30, 2015, increased 1.9% and 3.4%, respectively.
    • Monitronics Pre-SAC Adjusted EBITDA* for the three and six months ended June 30, 2015, increased 3.0%and 2.9% respectively.
    • Monitronics' subscriber accounts as of Sept. 30, 2015 increased 3.3% to 1,091,627.

    *LiveWatch is a direct-to-consumer business, and as such recognizes certain revenue and expenses associated with subscriber acquisition (subscriber acquisition costs, or "SAC"). This is in contrast to Monitronics, which capitalizes payments to dealers to acquire accounts.  Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base.  Please see the Appendix to this release for additional information about the non-GAAP measures included herein.

    Ascent Chairman and Chief Executive Officer Bill Fitzgerald stated, “Ascent delivered solid operating and financial results in the third quarter. We were also pleased to be able to repurchase 624,861 shares in the quarter, representing 4.7% of outstanding shares. Most important, I am excited to welcome Jeff Gardner on board as CEO of Monitronics. Jeff brings a wealth of financial and operational experience in the telecommunications industry and I look forward to his contributions to the business going forward.” 

    Jeffery Gardner, President and Chief Executive Officer of Monitronics, said, “I am pleased with Monitronics’ execution in the third quarter as the business delivered growth in net revenue, Pre-SAC Adjusted EBITDA and total subscribers. LiveWatch’s robust production engine also continues to generate a high volume of new accounts.

    “I am excited to be taking the helm of Monitronics as CEO.  I see vast opportunity ahead for the business and I look forward to leveraging my 25 years of experience running recurring revenue businesses in the telecom space to identify and develop additional growth opportunities.”

    Results for the Three and Nine Months Ended Sept. 30, 2015

    For the three months ended Sept. 30, 2015, Ascent reported net revenue of $141.8 million, an increase of 4.3%. For the nine months ended September 30, 2015 net revenue increased 4.5% to $421.8 million. The increase in net revenue is primarily attributable to increases in Monitronics' subscriber accounts and average recurring monthly revenue ("RMR") per subscriber. Monitronics’ subscriber accounts increased 3.3% for the twelve months ended Sept. 30, 2015, reflecting the acquisition of over 157,000 accounts through the Monitronics’ and LiveWatch subscriber acquisition channels subsequent to Sept. 30, 2014, as well as 31,919 accounts acquired in the LiveWatch acquisition in Feb. 2015. Monitronics’ average RMR per subscriber increased to $41.63 as of Sept. 30, 2015. Excluding accounts acquired through the LiveWatch acquisition, which had an average RMR of $28.46, Monitronics’ average RMR per subscriber was $42.03 as of Sept. 30, 2015.

    Ascent’s total cost of services for the three and nine months ended Sept. 30, 2015 increased 15.4% and 17.2% to $28.2 million and $81.0 million, respectively. This increase is attributable to the inclusion of LiveWatch, which expenses equipment costs associated with new customers. The increase is also attributable to the growth in the number of HomeTouch® customers and service costs for upgrades to customer systems. HomeTouch® services include home automation monitored across the cellular network.

    Ascent's selling, general & administrative ("SG&A") costs for the three and nine months ended Sept. 30, 2015, increased 28.9% and 14.2% to $31.4 million and $88.6 million, respectively. The increase is attributable to SG&A incurred at LiveWatch including marketing and sales cost related to the creation of new subscribers and one-time costs incurred by Monitronics of $946,000 related to professional services rendered in connection with the LiveWatch acquisition and $720,000 of costs incurred to relocate Monitronics’ headquarters in July 2015. LiveWatch SG&A for the three and nine months ended Sept. 30, 2015 includes the accrual of $1.3 million and $3.1 million for certain contingent bonuses payable in the future to key members of LiveWatch management in accordance with their employment agreements. These increases were partially offset by decreases in Monitronics' staffing and operating costs as a result of the completion of the Security Networks integration in April 2014. SG&A for the nine months ended Sept. 30, 2014 includes approximately $2.2 million of one-time professional fees rendered in relation to the Security Networks' integration.

    Ascent's Adjusted EBITDA decreased 3.0% to $86.3 million during the quarter and decreased 0.5% to $264.6 million for the nine months ended Sept. 30, 2015. Monitronics' Adjusted EBITDA decreased 3.5% to $88.3 million during the quarter and decreased 0.6% to $269.9 million for the nine months ended Sept. 30, 2015. Adjusted EBITDA is negatively impacted by certain revenue and expenses associated with the acquisition of subscriber accounts. Monitronics' Adjusted EBITDA as a percentage of revenue was 62.2% in the third quarter of 2015, compared to 67.3% for the three months ended Sept. 30, 2014. Monitronics' Adjusted EBITDA as a percentage of revenue for the nine months ended Sept. 30, 2015 was 64.0%, compared to 67.3% for the prior year period.

    Monitronics capitalizes payments to dealers to acquire accounts. In contrast, LiveWatch, a direct-to-consumer business, recognizes certain revenue and expenses associated with the acquisition of subscribers (subscriber acquisition costs, or "SAC") in the current period.  Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base.

    For the three and nine months ended Sept. 30, 2015, Ascent’s Pre-SAC Adjusted EBITDA for the three and nine months ended Sept. 30, 2015 increased 1.9% and 2.9% to $90.6 million and $273.5 million, respectively. Monitronics’ Pre-SAC Adjusted EBITDA increased 1.2% and 2.7% to $92.6 million and $278.8 million, respectively. Monitronics' Pre-SAC Adjusted EBITDA as a percentage of Pre-SAC Revenue for the three and nine months ended Sept. 30, 2015 was 65.8% and 66.6%, respectively. For a reconciliation of Adjusted EBITDA to Pre-SAC Adjusted EBITDA for Monitronics, please see appendix of this release. 

    Ascent reported a net loss from continuing operations for the three and nine months ended Sept. 30, 2015 of $27.3 million and $55.5 million, compared to net losses from continuing operations of $11.0 million and $30.9 million in the same periods in 2014.

    Monitronics reported a net loss for the three months ended September 30, 2015 of $21.4 million compared to a net loss of $8.3 million in the prior year period. For the nine months ended September 30, 2015, Monitronics reported a net loss of $45.7 million, compared to $24.7 million in the prior year period.

    The table below presents subscriber data for the twelve months ended Sept. 30, 2015 and 2014:


    Twelve Months Ended Sept. 30

    2015

    2014

    Beginning balance of accounts

    1,056,734

    1,041,740

    Accounts acquired

    189,590

    155,568

    Accounts canceled

    (145,181)

    (132,158)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a)

    (9,516)

    (8,416) (b)

    Ending balance of accounts

    1,091,627

    1,056,734

    Monthly weighted average accounts

    1,078,367

    1,049,267

    Attrition rate - Unit

    (13.5)%

    (12.6)%

    Attrition rate - RMR (c)

    (13.6)%

    (12.4)%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes a net increase of 983 subscriber accounts related to the Security Networks Acquisition. The increase was driven by a favorable adjustment of 1,101 accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014. The impact of this adjustment was offset by 118 subscriber accounts that were proactively canceled following the acquisition of Security Networks in August 2013 because they were active with both Monitronics and Security Networks.

    (c) The recurring monthly revenue ("RMR") of canceled accounts follows the same definition as subscriber unit attrition as noted above. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in that period, divided by the weighted average of RMR for that period.

    Unit attrition increased from 12.6% for the twelve months ended Sept. 30, 2014 to 13.5% for the twelve months ended Sept. 30, 2015. The increase in attrition is primarily associated with over 110,000 accounts acquired in bulk buys in the fourth quarter of 2012 and the first half of 2013.  A portion of these accounts reached the end of their initial term during the last twelve months and as a result experienced normal elevated attrition levels.  Excluding these bulk buys, attrition for the 12 months ended Sept. 30, 2015 was 12.5%. 

    During the three months ended Sept. 30, 2015 and 2014, Monitronics acquired 44,776 and 43,602 subscriber accounts, respectively. During the nine months ended Sept. 30, 2015 and 2014, Monitronics acquired 151,592 and 118,227 subscriber accounts, respectively. Accounts acquired for the three and nine months ended September 30, 2015 include approximately 600 and 1,800 accounts, respectively, purchased in bulk buys.  Accounts acquired for the nine months ended Sept. 30, 2015 also includes 31,919 accounts from the LiveWatch Acquisition in February 2015. Accounts acquired for the three and nine months ended Sept. 30, 2014 include approximately 2,500 and 5,400 accounts, respectively, purchased in bulk buys.

    Ascent Liquidity and Capital Resources

    At Sept. 30, 2015, on a consolidated basis, Ascent had $128.2 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the nine months ended Sept. 30, 2015, Monitronics used cash of $205.1 million to fund subscriber account acquisitions, net of holdback and guarantee obligations.

    At Sept. 30, 2015, the existing long-term debt principal balance of $1.8 billion includes Monitronics' Senior Notes, Credit Facility and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principle balance of $103.5 million as of Sept. 30, 2015 and mature on July 15, 2020. Monitronics' Senior Notes have an outstanding principal balance of $585.0 million as of Sept. 30, 2015 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $951.0 million as of September 30, 2015 and require principal payments of approximately $1.4 million per quarter with $403.8 million becoming due on March 23, 2018 and the remaining amount becoming due on April 9, 2022. The Credit Facility revolver has an outstanding balance of $129.6 million as of September 30, 2015 and becomes due on December 22, 2017.

    During the nine months ended Sept. 30, 2015, the Company repurchased 854,029 shares of Series A Common Stock pursuant to the Share Repurchase Authorizations for approximately $27.6 million. These repurchased shares were all canceled and returned to the status of authorized and unissued. As of Sept.30, 2015 the remaining availability under the Company’s Share Repurchase Authorizations will enable the Company to purchase up to an aggregate of approximately $12.3 million of Series A and Series B Common Stock.

    Conference Call

    Ascent hosted a call on Monday, Nov. 9, 2015 at 5:00 PM ET. A replay of the call can be accessed through Dec. 9, 2015 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 71995309.

    This call will also be available as a live webcast which can be accessed at Ascent's Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, consumer demand for interactive and home automation services, the anticipated benefits of the LiveWatch acquisition, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (Nasdaq:ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc., and through Monitronics, LiveWatch Security, LLC. Ascent also retains ownership of certain commercial real estate assets. Monitronics, headquartered in Dallas, TX, is the nation's second largest home security alarm monitoring company, providing security alarm monitoring services to more than one million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. LiveWatch Security, LLC ®, is a Do-It-Yourself ("DIY") home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. For more information on Ascent, see http://ascentcapitalgroupinc.com/

    1 Comparisons are year-over-year unless otherwise specified.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com



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    Ascent Capital Group Announces Financial Results for the Three and Six Months Ended June 30, 2015

    by Moni Blogger | Aug 11, 2015

    Englewood, CO – August 10, 2015 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three and six months ended June 30, 2015. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"), the nation's second-largest home security alarm monitoring company.


    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to nearly 1.1 million residential and commercial customers as of June 30, 2015. Monitronics' long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the three and six ended June 30, 2015 increased 5.1% and 4.6%, respectively.
    • Ascent's Pre-SAC Adjusted EBITDA*, which adjusts for the expensed portion of LiveWatch subscriber acquisition costs, for the three and six months ended June 30, 2015, increased 2.3% and 3.4%, respectively.
    • Monitronics Pre-SAC Adjusted EBITDA* for the three and six months ended June 30, 2015, increased 3.0%and 3.5% respectively.
    • Monitronics' subscriber accounts as of June 30, 2015 increased 3.5% to 1,092,812.

    *LiveWatch is a direct-to-consumer business, and as such recognizes certain revenue and expenses associated with subscriber acquisition (subscriber acquisition costs, or "SAC"). This is in contrast to Monitronics, which capitalizes payments to dealers to acquire accounts. Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base. Please see the Appendix to this release for additional information about this non-GAAP measure.

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “The business performed in line with expectations in the second quarter, delivering solid financial and operational results. Further, our acquisition of LiveWatch continued to provide a healthy new pipeline of subscriber additions and is on pace for continued growth in the back half of the year.”

    "We were also very pleased with the strong reception we received in the credit markets for the refinancing of a significant portion of our Term B debt and expansion of the revolver facility, the combination of which served to extend our maturities and create additional credit capacity and flexibility. In addition to the capital deployed for the LiveWatch acquisition during the quarter, we also spent $9.5 million on share repurchases and completed the sale of one of our largest real estate properties realizing $18.8 million."

    Mike Haislip, President and Chief Executive Officer of Monitronics said, "We executed well in the second quarter, delivering growth in revenue, Pre-Sac Adjusted EBITDA and overall subscriber accounts. In line with expectations, unit attrition ticked up modestly to 13.4% quarter-over-quarter, largely due to a prior significant bulk acquisition that resulted in a higher percentage of accounts reaching the end of their initial contract term.  We are also seeing the benefits of our acquisition of LiveWatch as the business continued to exceed expectations in its first full quarter as part of Monitronics, delivering profitable RMR and account growth in the quarter. Moving forward, we are focused on identifying additional growth opportunities in the form of a deliberate approach to acquiring high quality subscribers and internal account acquisitions through LiveWatch."

    Results for the Three and Six Months Ended June 30, 2015

    For the three months ended, June 30, 2015, Ascent reported net revenue of $141.5 million, an increase of 5.1%. For the six months ended June 30, 2015 net revenue increased 4.6% to $280.0 million. The increase in net revenue is primarily attributable to increases in Monitronics' subscriber accounts and average recurring monthly revenue ("RMR") per subscriber. Monitronics’ subscriber accounts increased 3.5% for the twelve months ended June 30, 2015, reflecting the acquisition of over 148,000 accounts through Monitronics’ authorized dealer program subsequent to June 30, 2014, as well as 31,919 accounts acquired in the LiveWatch acquisition in February, 2015. Monitronics’ average RMR per subscriber increased to $41.62 as of June 30, 2015. Excluding accounts acquired through the LiveWatch acquisition, which had an average RMR of $28.46, Monitronics’ average RMR per subscriber was $42.02 as of June 30, 2015.

    Ascent’s total cost of services for the three and six months ended June 30, 2015 increased 22.1% and 19.2% to $28.1 million and $53.7 million, respectively. This increase is attributable to the inclusion of LiveWatch, which expenses equipment costs associated with new customers. The increase is also attributable to the growth in the number of HomeTouch® customers and service costs for upgrades to customer systems. HomeTouch® services include home automation monitored across the cellular network. Monitronics' service costs for the three and six months ended June 30, 2015 also included $450,000 and $973,000 related to labor and materials expense incurred in relation to the Radio Conversion Program, which was implemented in 2014 to upgrade Monitronics' subscribers' alarm monitoring systems that communicate across certain 2G networks that are expected to be discontinued at the end of 2016.  For the three and six months ended June 30, 2014 Monitronics incurred $441,000 in relation to the Radio Conversion Program.

    Ascent's selling, general & administrative ("SG&A") costs for the three and six months ended increased 11.0% and 7.5% to $29.7 million and $57.3 million, respectively. The increase is attributable to SG&A incurred at LiveWatch including marketing and sales cost related to creation of new subscribers and one-time costs incurred by Monitronics of $946,000, related to professional services rendered in connection with the LiveWatch acquisition. LiveWatch SG&A for the three and six months ended June 30, 2015 includes the accrual of $1.3 million and $1.8 million for certain contingent bonuses payable in the future to key members of LiveWatch management in accordance with their employment agreements. These increases were partially offset by decreases in Monitronics' staffing and operating costs as a result of the completion of the Security Networks integration in April 2014. SG&A for the three and six months ended June 30, 2014 includes approximately $1.1 million and $2.2 million of one-time professional fees rendered in relation to the Security Networks' integration.

    Ascent’s Adjusted EBITDA decreased 1.6% to $87.5 million during the quarter and increased 0.8% to $178.3 million for the six months ended June 30, 2015. Monitronics’ Adjusted EBITDA decreased 0.8% to $90.0 million during the quarter and increased 0.9% to $181.6 million for the six months ended June 30, 2015. Adjusted EBITDA is negatively impacted by certain revenue and expenses associated with the acquisition of subscriber accounts. Monitronics' Adjusted EBITDA as a percentage of revenue was 63.6% in the second quarter of 2015, compared to 67.3% for the three months ended June 30, 2014. Monitronics' Adjusted EBITDA as a percentage of revenue for the six months ended June 30, 2015 was 64.9%, compared to 67.3% for the prior year period.

    Monitronics capitalizes payments to dealers to acquire accounts. In contrast, LiveWatch, a direct-to-consumer business, recognizes certain revenue and expenses associated with the acquisition of subscribers (subscriber acquisition costs, or "SAC") in the current period.  Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base.

    For the three and six months ended June 30, 2015, Ascent's Pre-SAC Adjusted EBITDA increased 2.3% and 3.4% to $91.0 million and $182.9 million, respectively. Monitronics Pre-SAC Adjusted EBITDA for the three and six months ended June 30, 2015 increased 3.0% and 3.5% to $93.4 million and $186.3 million, respectively. Monitronics' Pre-SAC Adjusted EBITDA as a percentage of Pre-SAC Revenue for the three and six months ended June 30, 2015 was 66.6% and 66.9%, respectively.  For a reconciliation of Adjusted EBITDA to Pre-SAC Adjusted EBITDA for Monitronics, please see appendix of this release. 

    Ascent reported a net loss from continuing operations for the three and six months ended June 30, 2015 of $18.5 million and $28.2 million, compared to net losses from continuing operations of $10.5 million and $19.9 million in the same periods in 2014.

    Monitronics reported a net loss for the three ended June 30, 2015 of $16.0 million compared to a net loss of $8.5 million in the prior year period. For the six months ended June 30, 2015, Monitronics reported a net loss of $24.3 million, compared to $16.4 million in the prior year period.

    The table below presents subscriber data for the twelve months ended June 30, 2015 and 2014:


    Twelve Months Ended June 30

    2015

    2014

    Beginning balance of accounts

    1,055,701

    838,723

    Accounts acquired

    188,416

    352,973

    Accounts canceled

    (142,951)

    (125,099)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a)

    (9,093)

    (10,896) (b)

    Ending balance of accounts

    1,092,083

    1,055,701

    Monthly weighted average accounts

    1,069,860

    1,014,809

    Attrition rate - Unit

    (13.4)%

    (12.3)%

    Attrition rate - RMR (c)

    (13.2)%

    (12.0)%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes a net reduction of 963 subscriber accounts related to the Security Networks Acquisition. These acquisition adjustments include 2,064 subscriber accounts that were proactively canceled following the acquisition of Security Networks in August 2013 because they were active with both Monitronics and Security Networks. The impact of these cancellations was partially offset by a favorable adjustment of 1,101 accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration April 2014.

    (c) The RMR of canceled accounts follows the same definition as subscriber unit attrition as noted above. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in that period, divided by the weighted average of RMR for that period.

    During the three months ended June 30, 2015 and 2014, Monitronics acquired 40,742 and 42,851 subscriber accounts, respectively. During the six months ended June 30, 2015 and 2014, Monitronics acquired 106,816 and 74,625 subscriber accounts, respectively. Accounts acquired for the six months ended June 30, 2015 includes 31,919 accounts from the LiveWatch Acquisition in February 2015. Accounts acquired for the three months and six months ended June 30, 2014 include approximately 2,900 purchased in bulk buys.

    Ascent Liquidity and Capital Resources

    At June 30, 2015, on a consolidated basis, Ascent had $122.4 million of cash, cash equivalents and marketable securities, of which $26.7 million was used to fund Monitronics' semi-annual interest payment on its Senior Notes on April 1, 2015. A portion of these assets may also be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the six months ended June 30, 2015, Monitronics used cash of $129.5 million to fund subscriber account acquisitions, net of holdback and guarantee obligations.

    At June 30, 2015, the existing long-term debt principal balance of $1.7 billion includes Monitronics' Senior Notes, Credit Facility and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principle balance of $103.5 million as of June 30, 2015 and mature on July 15, 2020. Monitronics' Senior Notes have an outstanding principal balance of $585.0 million as of June 30, 2015 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $952.4 million as of June 30, 2015 and require principal payments of approximately $1.4 million per quarter with $403.8 million becoming due on March 23, 2018 and the remaining amount becoming due on April 9, 2022. The Credit Facility revolver has an outstanding balance of $87.2 million as of June 30, 2015 and becomes due on December 22, 2017.

    During the six months ended June 30, 2015, the Company repurchased 229,168 shares of Series A Common Stock pursuant to the Share Repurchase Authorizations for approximately $9.5 million. These repurchased shares were all canceled and returned to the status of authorized and unissued. As of June 30, 2015, the remaining availability under the Company's Share Repurchase Authorizations will enable the Company to purchase up to an aggregate of approximately $5.4 million of Series A and Series B Common Stock.

    Conference Call

    Ascent hosted a call today on Monday, August 10, 2015 at 5:00 PM ET. A replay of the call can be accessed through October 10, 2015 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 95463020.

    This call will also be available as a live webcast which can be accessed at Ascent's Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, consumer demand for interactive and home automation services, the anticipated benefits of the LiveWatch acquisition, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (Nasdaq:ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc., and through Monitronics, LiveWatch Security, LLC. Ascent also retains ownership of certain commercial real estate assets. Monitronics, headquartered in Dallas, TX, is the nation's second largest home security alarm monitoring company, providing security alarm monitoring services to more than one million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. LiveWatch Security, LLC ®, is a Do-It-Yourself ("DIY") home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. For more information on Ascent, see http://ascentcapitalgroupinc.com/

    1 Comparisons are year-over-year unless otherwise specified.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com



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    Ascent Capital Group Announces Financial Results for the Three Months Ended March 31, 2015

    by Moni Blogger | May 08, 2015

    Englewood, CO – May 7, 2015 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three months ended March 31, 2015. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"), the nation's second-largest home security alarm monitoring company.


    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to nearly 1.1 million residential and commercial customers as of March 31, 2015. Monitronics' long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the three ended March 31, 2015 increased 4.2%.
    • Ascent's Adjusted EBITDA2 for the three months ended March 31, 2015, increased 3.2%.
      • For the three months ended March 31, 2015, Ascent's Pre-SAC Adjusted EBITDA*, which adjusts for the expensed portion of LiveWatch creation costs, increased 4.4%.
    • Monitronics Adjusted EBITDA3 for the three months ended March 31, 2015, increased 2.7%
      • For the three months ended March 31, 2015, Monitronics' Pre-SAC Adjusted EBITDA* increased 4.0%.
    • Monitronics' subscriber accounts as of March 31, 2015 increased 4.2% to 1,090,812.
    • Monitronics completed the acquisition of LiveWatch Security, LLC, a Do-It-Yourself ("DIY") professionally monitored home security provider offering interactive and home automation services, for approximately $61 million4.

    • Monitronics completed a $550 million refinancing of Term B and Revolver debt, laddering debt maturities through 2022.

    *LiveWatch is a direct-to-consumer business, and as such recognizes certain revenue and expenses associated with subscriber acquisition (subscriber acquisition costs, or "SAC"). This is in contrast to Monitronics, which capitalizes payments to dealers to acquire accounts. Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base. Please see the Appendix to this release for additional information about this non-GAAP measure.

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, "I am pleased with our performance in the first quarter. Monitronics delivered solid financial and operational results while completing the acquisition of LiveWatch, which is performing very well. We expect that LiveWatch will prove to be a very productive source of profitable new accounts and RMR.

    "We were also very pleased with the strong reception we received in the credit markets for the refinancing of a significant portion of our Term B debt and expansion of the revolver facility, the combination of which served to extend our maturities and create additional credit capacity and flexibility. In addition to the capital deployed for the LiveWatch acquisition during the quarter, we also spent $9.5 million on share repurchases and completed the sale of one of our largest real estate properties realizing $18.8 million."

    Mike Haislip, President and Chief Executive Officer of Monitronics said, "Monitronics is off to a good start in 2015. We delivered solid growth in revenue, Adjusted EBITDA, and subscriber accounts, while approximately 70% of new customers signed on for advanced services during the quarter. Consistent with expectations, unit attrition levels increased to 13.2%, largely due to a prior significant bulk acquisition that resulted in a higher percentage of accounts reaching the end of their initial contract term. We continue to expect a modest incremental increase in attrition through the second quarter of 2015, before it declines in the second half of the year.

    "We continue to execute well on our long-term business strategy and believe we are well positioned to capitalize on our scalable platform and effective capitalization structure to deliver predictable and stable earnings and cash flow in the quarters and years to come. In addition, the acquisition of LiveWatch places us at the forefront of the rapidly growing DIY space. We are clearly excited about the opportunities ahead."

    Results for the Three Months Ended March 31, 2015

    For the three months ended, March 31, 2015, Ascent reported net revenue of $138.4 million, an increase of 4.2% compared to $132.9 million for the three months ended March 31, 2014. The increase in net revenue is primarily attributable to increases in Monitronics' subscriber accounts and average recurring monthly revenue ("RMR") per subscriber. Monitronics' subscriber accounts increased 4.2% in the three months ended March 31, 2015, reflecting the acquisition of over 148,000 accounts through Monitronics' authorized dealer program subsequent to March 31, 2014, as well as 31,936 accounts acquired in the LiveWatch acquisition in February, 2015. Monitronics' average RMR per subscriber increased to $41.43 as of March 31, 2015. Excluding accounts acquired through the LiveWatch acquisition, which had an average RMR per subscriber of $28.45, Monitronics' average RMR per subscriber was $41.83 as of March 31, 2015.

    Ascent's total cost of services for the three months ended March 31, 2015 increased 16.3% to $25.7 million. This increase is attributable to the LiveWatch acquisition, increases in the number of HomeTouch® customers and service costs primarily for upgrades to customer systems. HomeTouch® services include home automation monitored across the cellular network. Monitronics' service costs also included $523,000 related to labor and materials expense incurred in relation to the Radio Conversion Program, which was implemented in 2014 to upgrade Monitronics' subscribers' alarm monitoring systems that communicate across certain 2G networks that are expected to be discontinued at the end of 2016.

    Ascent's selling, general & administrative ("SG&A") costs for the three months ended March 31, 2015 increased 4.0% to $27.6 million. The increase is attributable to SG&A incurred at LiveWatch, as well as the one-time acquisition costs incurred by Monitronics of $946,000, related to professional services rendered in connection with the LiveWatch acquisition. LiveWatch SG&A includes the accrual of $519,000 for certain contingent bonuses payable in the future to key members of LiveWatch management in accordance with their employment agreements. These increases were partially offset by decreases in Monitronics' staffing and operating costs as a result of the completion of the Security Networks integration in April 2014. SG&A for the three months ended March 31, 2014 includes approximately $1.1 million of one-time professional fees rendered in relation to the Security Networks' integration.

    For the three months ended March 31, 2015, Ascent's Adjusted EBITDA increased 3.2% to $90.7 million. Monitronics' Adjusted EBITDA for the three months ended March 31, 2015 was $91.7 million, an increase of 2.7% over the three months ended March 31, 2014. Monitronics' Adjusted EBITDA as a percentage of revenue was 66.2% in the quarter ended March 31, 2015, as compared to 67.2% for the three months ended March 31, 2014.

    LiveWatch is a direct-to-consumer business, and as such recognizes certain revenue and expenses associated with subscriber acquisition (subscriber acquisition costs, or "SAC"). This is in contrast to Monitronics, which capitalizes payments to dealers to acquire accounts. Because Pre-SAC Adjusted EBITDA accounts for the different treatment for LiveWatch, the Company believes that it is a meaningful measure of Monitronics' financial performance in servicing its customer base. For the three months ended March 31, 2015 Ascent's Pre-SAC Adjusted EBITDA increased 4.4% to $91.9 million. Monitronics Pre-SAC Adjusted EBITDA for the three months ended March 31. 2015 increased 4.0% to $92.8 million as compared to $89.3 million in the prior year period. Monitronics' Pre-SAC Adjusted EBITDA as a percentage of Pre-SAC Revenue was 67.3% in the quarter ended March 31, 2015 as compared to 67.2% in the prior year period. For a reconciliation of Adjusted EBITDA to Pre-SAC Adjusted EBITDA for Monitronics, please see appendix of this release.

    Ascent reported a net loss from continuing operations for the three months ended March 31, 2015 of $9.7 million, compared to a net loss from continuing operations of $9.4 million for the same period in 2014.

    Monitronics' reported a net loss for the three months ended March 31, 2015 of $8.3 million compared to net loss of $7.9 million in the prior year period.

    The table below presents subscriber data for the twelve months ended March 31, 2015 and 2014:


    Twelve Months Ended March 31

    2015

    2014

    Beginning balance of accounts

    1,046,785

    818,335

    Accounts acquired

    190,542

    357,855

    Accounts canceled

    (139,824)

    (118,688)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a)

    (7,174) (b)

    (9,036) (c)

    Ending balance of accounts

    1,090,812

    1,046,785

    Monthly weighted average accounts

    1,060,524

    962,527

    Attrition rate - Unit

    (13.2)%

    (12.3)%

    Attrition rate - RMR (d)

    (13.0)%

    (12.0)%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes an increase of 1,503 subscriber accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014.

    (c) Includes 2,046 subscriber accounts that were proactively canceled during 2013 because they were active with both Monitronics and Security Networks.

    (d) The RMR of canceled accounts follows the same definition as subscriber unit cancellations. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in a given period, divided by the weighted average RMR for that period.

    During the three months ended March 31, 2015 and 2014, Monitronics acquired 66,091 and 31,774 subscriber accounts, respectively. Accounts acquired for the three months ended March 31, 2015 include 31,936 accounts from the LiveWatch acquisition in February 2015.

    Ascent Liquidity and Capital Resources

    At March 31, 2015, on a consolidated basis, Ascent had $145.9 million of cash, cash equivalents and marketable securities, of which $26.7 million was used to fund Monitronics' semi-annual interest payment on its Senior Notes on April 1, 2015. A portion of these assets may also be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the three months ended March 31, 2015, Monitronics used cash of $61.1 million to fund subscriber account acquisitions from the dealer network, net of holdback and guarantee obligations.

    At March 31, 2015, the existing long-term debt principal balance of $1.7 billion includes Monitronics' Senior Notes, Credit Facility and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principal balance of $103.5 million as of March 31, 2015 and mature on July 15, 2020. Monitronics' Senior Notes have an outstanding principal balance of $585.0 million as of March 31, 2015 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $896.0 million as of March 31, 2015 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $130.3 million as of March 31, 2015 and becomes due on December 22, 2017.

    On April 9, 2015, Monitronics completed the issuance of an incremental $550 million, 7-year Senior Secured Term Loan B offering. The new term loans bear interest at LIBOR plus 3.50%, subject to a LIBOR floor of 1.00%, and mature on April 9, 2022. Monitronics used the net proceeds to retire $492 million of the existing Term Loan, due in March 2018, and repaid $50 million of the Company's Revolving Credit Facility. Concurrent with the offering, Monitronics amended its existing credit agreement, removing the third quarter 2015 Senior Secured and Total Leverage covenant step-downs, among other covenant changes.

    During the three months ended March 31, 2015, Ascent repurchased 229,168 shares of Series A Common Stock pursuant to the Share Repurchase Authorizations for approximately $9.5 million. These repurchased shares were all canceled and returned to the status of authorized and unissued. As of March 31, 2015, the remaining availability under the Company's Share Repurchase Authorizations will enable the Company purchase up to an aggregate of approximately $5.4 million of Series A and Series B Common Stock.

    Conference Call

    Ascent hosted a call today on Thursday, May 7, 2015 at 5:00 PM ET. A replay of the call can be accessed through July 7, 2015 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 35708983.

    This call will also be available as a live webcast which can be accessed at Ascent's Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, consumer demand for interactive and home automation services, the anticipated benefits of the LiveWatch acquisition, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (Nasdaq:ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc., and through Monitronics, LiveWatch Security, LLC. Ascent also retains ownership of certain commercial real estate assets. Monitronics, headquartered in Dallas, TX, is the nation's second largest home security alarm monitoring company, providing security alarm monitoring services to more than one million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. LiveWatch Security, LLC ®, is a Do-It-Yourself ("DIY") home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. For more information on Ascent, see http://ascentcapitalgroupinc.com/

    1 Comparisons are year-over-year unless otherwise specified. 

    2 For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent's net loss from continuing operations for the three months ended March 31, 2015 totaled $9.7 million. 

    3 Monitronics' net loss for the three month period totaled $8.3 million. 

    4 Excludes contingent retention and performance based bonus arrangements with certain key members of the LiveWatch management team.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com



    226 Comments

    Ascent Capital Group Announces Financial Results for the Three Months and Full Year Ended Dec. 31, 2014

    by Moni Blogger | Mar 03, 2015

    Announces Acquisition of LiveWatch Security, LLC

    Acquisition adds over 32,000 Customer Accounts and Creates Unique Presence in High Growth DIY Security Market


    Englewood, CO – Feb. 26, 2015 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three months and full year ended December 31, 2014. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"), the nation's second-largest home security alarm monitoring company.

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 1 million residential and commercial customers as of Dec. 31, 2014. Monitronics' long-term monitoring contracts provide high-margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the three and twelve months ended December 31, 2014 increased 2.3% and 19.6%, respectively.
    • Ascent's Adjusted EBITDA2 for the three and twelve months ended December 31, 2014 increased 3.1% and 16.5%, respectively
    • Monitronics Adjusted EBITDA3 for the three and twelve months ended December 31, 2014 increased 3.4% and 18.7%
      • Monitronics RMR as of Dec. 31, 2014, increased 3.1% to $44.1 million.
      • Average RMR per subscriber increased 1.8% to $41.64.
    • Monitronics has acquired LiveWatch Security, LLC, a Do-It-Yourself ("DIY") home security provider offering interactive and home automation services, for approximately $67 million.
      • LiveWatch services over 32,000 accounts nationwide and has over $900,000 over recurring monthly revenue.

    Ascent Chairman and Chief Executive Officer Bill Fitzgerald stated, "Monitronics delivered another year of solid operating performance in 2014, with strong year over year growth in revenue and Adjusted EBITDA..

    "In an effort to continue expanding Monitronics' service offerings and distribution channels, we are pleased to announce the acquisition of LiveWatch Security, a significant player in the rapidly growing DIY home security space. This acquisition will allow Monitronics to diversify its service offerings with entry into the developing and complementary DIY home service category. In addition to bringing an additional 32,000 customer accounts to the Monitronics platform, it will also provide a very robust production engine that is expected to continue generating a high volume of new accounts and RMR."

    Mike Haislip, President and Chief Executive Officer of Monitronics, said, "Monitronics' performance in the fourth quarter and 2014 reflects our disciplined approach to managing our operations. We delivered solid revenue and Adjusted EBITDA growth in 2014. As previously predicted, attrition levels increased to 12.9%, largely due to a significant prior bulk acquisition that has resulted in a higher percentage of accounts reaching the end of their initial contract terms. Our predictive data continues to indicate that this bulk purchase will lead to a modest incremental increase in attrition through the first half of 2015 before seeing it moderate in the second half of the year. Overall, we were very pleased with our operating performance for the year."

    LiveWatch Security, LLC

    On Feb. 23, Monitronics acquired LiveWatch Security, LLC, a Do-It-Yourself ("DIY") home security provider offering interactive and home automation services for approximately $67 million, which includes $6 million of retention bonuses to be paid on the second anniversary of the closing.

    With over $900,000 of recurring monthly revenue, LiveWatch provides professionally monitored security system services to over 32,000 customers across all fifty states and Puerto Rico.

    In conjunction with this transaction, Monitronics has expanded its revolving credit facility by $90 million. The transaction was financed with debt under the expanded revolver and cash from Ascent.

    About the acquisition Monitronics Chief Executive Officer, Michael Haislip, commented, "We are excited to have acquired LiveWatch, an established player in the rapidly expanding DIY space, a compelling channel that we have long been interested in entering. LiveWatch provides Monitronics with innovative and diversified account generation potential that, over time, can be expanded into adjacent product and service offerings beyond traditional home security monitoring."

    Brad Morehead, CEO of LiveWatch, added, "The home security industry is experiencing a rapid technological evolution and we believe that we are at the forefront of that change. Partnering with Monitronics, a well-respected industry leader, will enable LiveWatch to accelerate its innovation, leverage scale opportunities, and enhance the overall customer experience."

    LiveWatch will operate as a standalone subsidiary of Monitronics.

    Three and Twelve Months Ended December 31, 2014

    Ascent Capital Group, Inc.

    Ascent reported net revenue of $135.9 million, an increase of 2.3% compared to $132.8 million for the three months ended December 31, 2013. For the twelve months ended December 31, 2014 net revenue increased 19.6% to $539.4 million. The increase in net revenue for the three and twelve month time periods is primarily attributable to increases in Monitronics' subscriber accounts and average RMR per subscriber.

    Ascent's total cost of services for the three and twelve months ended December 31, 2014 increased 7.0% and 27.8% to $24.8 million and $94.7 million, respectively. The increase is primarily attributable to Monitronics' subscriber growth over the last twelve months, as well as increases in the number of HomeTouch customers and service costs. Service costs for the year ended December 31, 2014 also included $1.1 million of non-recurring costs related to the Radio Conversion Program, as described in more detail below.

    Selling, general & administrative ("SG&A") expenses for the three months ended December 31, 2014 decreased 8.9% to $24.5 million, and increased 11.0% to $102.1 million for the full year 2014. Decreased SG&A costs for the three months ended December 31, 2014, are attributable to Monitronics' elimination of duplicate costs related to the Security Networks acquisition that closed in August 2013. The increase for the twelve month period is a result of higher Monitronics SG&A costs, which are attributable to subscriber growth over the last twelve months and redundant staffing through April 2014, when the transition of Security networks operations from Florida to Texas was completed.

    Ascent's Adjusted EBITDA increased 3.1% to $88.9 million during the quarter and 16.5% to $354.8 million for the twelve months ended December 31, 2014. This increase is primarily due to revenue and subscriber growth at Monitronics.

    Ascent reported net losses from continuing operations for the three and twelve months ended December 31, 2014 of $6.6 million and $37.4 million, respectively, compared to net losses of $16.5 million and $21.6 million for the same periods in 2013.

    Monitronics International, Inc.

    For the three and twelve months ended December 31, 2014, Monitronics reported net revenue of $135.9 million and $539.4 million, increases of 2.3% and 19.6%, respectively. The increase in net revenue is attributable to the growth in the number of subscriber accounts and the increase in average RMR per subscriber to $41.64. The growth in subscriber accounts reflects the acquisition of over 200,000 accounts from Security Networks in August 2013 and the acquisition of over 145,000 accounts through Monitronics' authorized dealer program subsequent to December 31, 2013. Net revenue for the year ended December 31, 2013 also reflects the negative impact of an approximate $2,715,000 fair value adjustment that reduced deferred revenue acquired in the Security Networks Acquisition.

    Monitronics' total cost of services for the three and twelve months ended December 31, 2014 increased 7.0% to $24.8 million and 27.8% to $94.7 million, respectively. The increase is primarily attributable to subscriber growth as explained above, as well as increases in the number of HomeTouch customers and service costs. HomeTouch services include home automation services monitored across the cellular network. Service cost for the year ended December 31, 2014 included $1.1 million of labor and materials expense incurred in relation to the Radio Conversion Program, which was implemented in 2014 to upgrade subscribers' alarm monitoring systems that communicate across certain 2G networks that are expected to be discontinued at the end of 2016.

    Monitronics' SG&A costs decreased 8.2% to $21.3 million for the three months ended December 31, 2014 and increased 14.0% to $87.9 million for the full year. The decreased SG&A costs for the three months ended December 31, 2014 are attributable to the elimination of duplicate costs from the Security Networks acquisition, which include reduced payroll and facility costs. Additionally, SG&A costs for the three months ended December 31, 2013 included $729,000 of professional fees incurred in relation to the Security Networks integration. For the twelve months ended December 31, 2014, the increase is attributable to subscriber growth over the last twelve months. In addition and as noted above, Monitronics incurred redundant staffing and operating costs at its Dallas headquarters in advance of transitioning Security Networks' operations from Florida to Texas, which was completed in April 2014.

    Monitronics' Adjusted EBITDA for the three months ended December 31, 2014 was $90.8 million, an increase of 3.4% over the three months. For the twelve months ended December 31, 2014, Monitronics' Adjusted EBITDA increased 18.7% to $362.2 million. The increase is primarily due to revenue growth. Monitronics' Adjusted EBITDA as a percentage of revenue was 66.8% in the quarter ended December 31, 2014, compared to 66.1% for the three months ended December 31, 2013. Monitronics' Adjusted EBITDA as a percentage of revenue for the twelve months ended December 31, 2014 totaled 67.1%, compared to 67.7% for the year-ago period.

    Monitronics reported net losses for the three and twelve months ended December 31, 2014 of $5.0 million and $29.7 million, respectively, compared to net losses of $14.1 million and $16.7 million for the same periods in 2013.

    The table below presents subscriber data for the twelve months ended December 31, 2014 and 2013:

    Twelve Months Ended December 31

    2014

    2013

    Beginning balance of accounts

    1,046,155

    812,539

    Accounts acquired

    156,225

    354,541

    Accounts cancelled

    (135,940)

    (111,889)

    Canceled accounts guaranteed by dealer and acquisition adjustment

    (7,174) (a)

    (9,036) (b)

    Ending balance of accounts

    1,059,266

    1,046,155

    Monthly weighted average accounts

    1,052,756

    908,921

    Attrition rate - Unit

    (12.9)%

    (12.3)%

    Attrition rate - RMR (d)

    (12.6)%

    (12.2)%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes an increase of 1,503 subscriber accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014.

    (c) Includes 2,046 subscriber accounts that were proactively canceled during 2013 because they were active with both Monitronics and Security Networks.

    (d) The RMR of canceled accounts follows the same definition as subscriber unit cancellations. RMR attrition is defined as the RMR of canceled accounts in a given period, adjusted for the impact of price increases or decreases in a given period, divided by the weighted average RMR for that period.

    During the three months ended December 31, 2014 and 2013, Monitronics acquired 37,998 subscriber accounts and 37,341 subscriber accounts, respectively. During the years ended December 31, 2014 and 2013, Monitronics acquired 156,225 and 150,643 subscriber accounts, respectively, without giving effect to the Security Networks Acquisition which included 203,898 accounts acquired at the completion of the acquisition in August of 2013.

    Ascent Liquidity and Capital Resources

    At December 31, 2014, on a consolidated basis, Ascent had $135.2 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the twelve months ended December 31, 2014, Monitronics used cash of $268.2 million to fund subscriber account acquisitions, net of holdback and guarantee obligations.

    At December 31, 2014, the existing long-term debt principal balance of $1.7 billion includes Monitronics' Senior Notes, Credit Facility and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principal balance of $103.5 million as of December 31, 2014 and mature on July 15, 2020. Monitronics' Senior Notes have an outstanding principal balance of $585.0 million as of December 31, 2014 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $898.3 million as of December 31, 2014 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $70.5 million as of December 31, 2014 and becomes due on December 22, 2017.

    Conference Call

    Ascent will host a conference call today, February 26, 2015, at 5:00 p.m. EST. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 80046849. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through April 26, 2015 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 80046849.

    This call will also be available as a live webcast which can be accessed at Ascent's Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, consumer demand for interactive and home automation services, the anticipated benefits of the LiveWatch acquisition, future financial prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (NASDAQ:ASCMA) (OTCMKTS: ASCMB) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC. Monitronics International, headquartered in Dallas, TX, is one of the nation's largest, fastest-growing home security alarm monitoring companies, providing security alarm monitoring services to more than 1,000,000 residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. For more information, see http://ascentcapitalgroupinc.com/.

    About LiveWatch Security, LLC

    LiveWatch Security®, a DIY home security system provider offering smartphone-enabled alarm systems and home automation, has revolutionized home security in America with its Plug & Protect® home security system featuring the patented ASAPer® (As Soon As Possible Emergency Response) service. Founded in 2002, LiveWatch is headquartered in Evanston, IL and serves customers in all 50 states, Puerto Rico and Canada. LiveWatch (including its e-Commerce division SafeMart) was honored with the 2014 Gold Stevie Award for Customer Service, 2013 Silver Stevie Award for eCommerce Customer Service, and was recognized as an enterprise leader by The Economist. For more information, please visit LiveWatch.com and SafeMart.com.

    ###

    Contact:

    Erica Bartsch Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com

    1  Comparisons are year-over-year unless otherwise specified.

    2  For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent's net loss for the three and nine months ended September 30, 2014 totaled $11.1 million and $31.1 million, respectively.

    3  Monitronics' net loss for the three and nine month periods totaled $8.3 million and $24.7 million, respectively.

    4  Calculated as the average recurring monthly revenue per subscriber.


    Ascent Capital Group to Report Fourth Quarter and FY 2014 Results on Feb. 26

    by Moni Blogger | Feb 05, 2015

    Englewood, CO – February 3, 2015 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (NASDAQ: ASCMA) will issue a press release to report its results for the three and twelve months ended December 31, 2014 after the market close on Thursday, February 26, 2015. The company will host a conference call that day at 5:00 p.m. ET in which management will provide an update on Ascent’s operations, including the financial performance of its wholly owned subsidiary, Monitronics International, Inc., and may also discuss future opportunities.

    Participating on the call will be Ascent’s Chairman and Chief Executive Officer, Bill Fitzgerald; Senior Vice President and Chief Financial Officer, Mike Meyers; and Executive Vice President, Mike Haislip. Haislip and Meyers are also executive officers of Monitronics.

    To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 80046849. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through April 26, 2015 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 80046849.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (NASDAQ: ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC. Monitronics International, headquartered in Dallas, TX, is one of the nation's largest, fastest-growing home security alarm monitoring companies, providing security alarm monitoring services to more than 1,000,000 residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. For more information, see http://ascentcapitalgroupinc.com/ 

    Contact:
    Erica Bartsch
    Sloane & Company
    212-446-1875
    ebartsch@sloanepr.com

    357 Comments

    Ascent Capital Group Announces Financial Results for the Three and Nine Months Ended September 30, 2014

    by User Not Found | Nov 11, 2014

    Englewood, CO – Nov. 10, 2014 – Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) (OTCMKTS: ASCMB) has reported results for the three and nine months ended September 30, 2014. 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 1 million residential and commercial customers. Monitronics' long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent's net revenue for the three and nine months ended September 30, 2014 increased 17.4% and 26.8%, respectively
    • Ascent's Adjusted EBITDA2 for the three and nine months ended September 30, 2014 increased 17.1% and 21.5%, respectively
    • Monitronics' Adjusted EBITDA3 for the three and nine months ended September 30, 2014 increased 17.4% and 24.5%
    • Ascent announced the Board of Directors' authorization of an increase of $25 million to its stock repurchase program

    Ascent Chairman and Chief Executive Officer Bill Fitzgerald stated, "We continue to execute well against our long-term business strategy and continue to deliver solid financial and operational results.  The predictable and stable nature of the Monitronics business model within this rapidly developing industry sector serves to offer expansive opportunities for growth, while the main tenets that attracted us to this investment remain sound, including strong free cash flow generation.  We remain very bullish on the long-term outlook for continued profitable growth of our core operations.

    "Additionally, we continue to exercise a disciplined approach to capital allocation.  The authorization to repurchase an additional $25 million in stock underscores our confidence in the long-term growth prospects of the business and our commitment to continued shareholder value creation."

    Mike Haislip, President and Chief Executive Officer of Monitronics, said, "Monitronics delivered solid growth in revenue and Adjusted EBITDA in the quarter. Our accounts acquired in the quarter were up 17.5 percent year-over-year, and we continued to see strong demand for our home automation offerings. Attrition was flat with the year ago period and increased modestly quarter-over-quarter. Moving forward, we are focused on identifying additional growth opportunities in the form of bulk account purchases and the continued recruitment of new dealers."

    Three and Nine Months Ended September 30, 2014

    Ascent Capital Group, Inc.

    For the three months ended September 30, 2014, Ascent reported net revenue of $136.0 million, an increase of 17.4% compared to $115.8 million for the three months ended September 30, 2013. For the nine months ended September 30, 2014, net revenue increased 26.8% to $403.6 million. The increase in net revenue for the three and nine month time periods is predominately attributable to increases in Monitronics' subscriber accounts and average RMR per subscriber, which were both driven primarily by the August 16, 2013 acquisition of Security Networks.

    Ascent's total cost of services for the three and nine months ended September 30, 2014 increased 23.2% and 37.2% to $24.8 million and $69.9 million, respectively. This increase is primarily attributable to Monitronics' subscriber growth over the last twelve months, as well as increases in the number of HomeTouch customers and service costs, as described in more detail below.

    Selling, general & administrative ("SG&A") costs increased 2.0% to $24.3 million for the three months ended September 30, 2014 and increased 19.2% to $77.6 million for the first nine months of 2014. The increase is a result of higher Monitronics SG&A costs, which are attributable to subscriber growth over the last twelve months, and for the nine month period redundant staffing in Dallas in advance of the transition of Security Networks operations from Florida to Texas and integration costs related to the acquisition of Security Networks.

    Ascent's Adjusted EBITDA increased 17.1% to $88.6 million during the quarter and 21.5% to $265.1 million for the nine months ended September 30, 2014. This increase is primarily due to revenue and subscriber growth at Monitronics.

    Ascent reported net losses from continuing operations for the three and nine months ended September 30, 2014 of $11.0 million and $30.9 million, compared to net losses of $7.7 million and $5.1 million in the same periods in 2013.

    Monitronics International, Inc.

    For the three months ended September 30, 2014, Monitronics reported net revenue of $136.0 million, an increase of 17.4% compared to $115.8 million for the three months ended September 30, 2013. For the nine months ended September 30, 2014, net revenue increased 26.8% to $403.6 million. The increase in net revenue is attributable to the growth in the number of subscriber accounts and the increase in average RMR per subscriber to $41.36. The growth in subscriber accounts reflects the acquisition of over 200,000 accounts from Security Networks in August 2013 and the acquisition of over 150,000 accounts through Monitronics' authorized dealer program subsequent to September 30, 2013.  Net revenue for the three and nine months ended September 30, 2013 also reflects the negative impact of an approximate $2,500,000 fair value adjustment that reduced deferred revenue acquired in the Security Networks Acquisition.

    Monitronics' total cost of services for the three and nine months ended September 30, 2014 increased 23.2% to $24.8 million and 37.2% to $69.9 million, respectively. The increase is primarily attributable to subscriber growth as explained above, as well as increases in the number of HomeTouch customers and service costs. HomeTouch services include home automation services monitored across the cellular network.

    Monitronics' SG&A costs increased 3.0% to $20.6 million for the three months ended September 30, 2014 and increased 23.5% to $66.7 million for the first nine months of 2014. The increases are attributable to subscriber growth over the last twelve months.  In addition, for the nine months ended September 30, 2014, the Company incurred redundant staffing and operating costs at Monitronics' Dallas headquarters in advance of transitioning Security Networks' operations from Florida to Texas, which was completed in April 2014. Professional fees incurred in relation to the transition effort totaled $2.2 million for the nine months ended September 30, 2014, as compared to $535,000 for the corresponding year ago period.

    Monitronics' Adjusted EBITDA for the three months ended September 30, 2014 was $91.1 million, an increase of 17.4% over the three months ended September 30, 2014. For the nine months ended September 30, 2014, Monitronics' Adjusted EBITDA increased 24.5% to $270.7 million. The increase is primarily due to revenue growth. Monitronics' Adjusted EBITDA as a percentage of revenue was unchanged at 67.0% in the third quarter of 2014, compared to the year ago period. Monitronics' Adjusted EBITDA as a percentage of revenue for the nine months ended September 30, 2014 was 67.1%, compared to 68.3% for the prior year period.

    Monitronics reported a net loss for the three months ended September 30, 2014 of $8.3 million compared to $4.5 million in the prior year period. Monitronics reported a net loss for the nine months ended September 30, 2014 of $24.7 million compared to $2.5 million in the prior year period.

    The table below presents subscriber data for the twelve months ended September 30, 2014 and 2013:

    Twelve Months Ended September 30

    2014

    2013

    Beginning balance of accounts

    1,041,740

    717,488

    Accounts acquired

    155,568

    437,860

    Accounts cancelled

    (132,153)

    (106,859)

    Canceled accounts guaranteed by dealer and acquisition adjustment

    (8,014) (a)

    (6,749) (b)

    Ending balance of accounts

    1,057,141

    1,041,740

    Monthly weighted average accounts

    1,049,454

    847,673

    Attrition rate

    (12.6)%

    (12.6)%


    (a) Includes canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b) Includes a net increase of 1,385 subscriber accounts related to the Security Networks Acquisition. These acquisition adjustments include a favorable adjustment of 1,503 accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014. The favorable adjustment was partially offset by 118 subscriber accounts that were proactively canceled in October 2013 because they were active with both Monitronics and Security Networks.

    (c) Includes 1,946 subscriber accounts that were proactively canceled during the third quarter of 2013 because they were active with both Monitronics and Security Networks.

    Monitronics' trailing twelve months attrition for the period September 30, 2014 was unchanged at 12.6%, compared to the year ago period.

    Ascent Liquidity and Capital Resources

    At September 30, 2014, on a consolidated basis, Ascent had $182.1 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities. Of this amount, $26.7 million was used to pay our semi-annual Senior Notes interest payment on October 1, 2014.

    During the nine months ended September 30, 2014, Monitronics used cash of $202.4 million to fund subscriber account acquisitions, net of holdback and guarantee obligations.

    At September 30, 2014, the existing long-term debt principal balance of $1.7 billion includes Monitronics' Senior Notes, Credit Facility and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principle balance of $103.5 million as of September 30, 2014 and mature on July 15, 2020. Monitronics' Senior Notes have an outstanding principal balance of $585.0 million as of September 30, 2014 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $900.6 million as of September 30, 2014 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The $225 million Credit Facility revolver has an outstanding balance of $77.1 million as of September 30, 2014 and becomes due on December 22, 2017.

    On November 10, 2014, Ascent announced the Board of Directors' authorization of an increase of $25 million to its stock repurchase program, which combined with the remaining availability under Ascent's existing stock repurchase program will enable Ascent to purchase up to an aggregate of $28.15 million of its Series A Common Stock. Ascent may also purchase shares of Series B Common Stock under its increased program. Ascent may acquire from time to time its common stock through open market transactions and/or privately negotiated transactions, which may include derivative transactions. The timing of the repurchase of shares pursuant to the program will depend on a variety of factors, including market conditions. The program may be suspended or discontinued at any time.

    Conference Call

    Ascent will host a conference call today, November 10, 2014, at 5:00 p.m. EST. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 23254330. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through January 10, 2015 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 23254330.

    This call will also be available as a live webcast which can be accessed at Ascent's Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, benefits from the integration of Security Networks' operations, future financial prospects, the continuation of our stock repurchase program and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions (including those conducive to stock repurchases), and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent's business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (NASDAQ:ASCMA) (OTCMKTS: ASCMB) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC. Monitronics International, headquartered in Dallas, TX, is one of the nation's largest, fastest-growing home security alarm monitoring companies, providing security alarm monitoring services to more than 1,000,000 residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. For more information, see http://ascentcapitalgroupinc.com/.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com

    1  Comparisons are year-over-year unless otherwise specified.

    2  For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent's net loss for the three and nine months ended September 30, 2014 totaled $11.1 million and $31.1 million, respectively.

    3  Monitronics' net loss for the three and nine month periods totaled $8.3 million and $24.7 million, respectively.

    4  Calculated as the average recurring monthly revenue per subscriber.


    Ascent Capital Group Announces Financial Results For The Three and Six Months Ended June 30, 2014

    by Moni Blogger | Aug 15, 2014

    Englewood, CO – August 15, 2014 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and six months ended June 30, 2014. 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 1,000,000 residential and commercial customers. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent’s net revenue for the three and six months ended June 30, 2014 increased 31.7% and 32.2%, respectively.
    • Ascent’s Adjusted EBITDA2 for the three and six months ended June 30, 2014 increased 24.3% and 23.8%, respectively.
    • Monitronics’ Adjusted EBITDA3 for the three and six months ended June 30, 2014 increased 28.2% and 28.4%.
      • Monitronics subscriber accounts as of June 30, 2014 increased 25.9% to 1,056,106.
      • The growth in subscriber accounts reflects the effects of the acquisition of Security Networks as well as strong performance in the core account generation engine.
      • Average RMR per subscriber4 as of June 30, 2014 increased 3.2% to $41.26.

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “We are very pleased with the performance of the business during the first half of 2014 with Monitronics delivering strong growth in revenue, Adjusted EBITDA and total subscribers in the first half of the year. At the holding company level, we repurchased over 116,000 shares in the quarter and continue to explore the most appropriate uses of our capital, including acquisition opportunities within alarm monitoring and related sectors.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “Monitronics posted solid second quarter results and delivered strong operational execution across all areas of the business. Revenue and Adjusted EBITDA increased a solid 31% and 28%, respectively and total subscriber accounts were up over 25% on strong growth attributable to the acquisition of Security Networks and account purchases through our dealer program. Our attrition level remained unchanged from the first quarter at 12.3%. Looking ahead, we believe we remain positioned well going forward into the second half of 2014.”

    Three and Six Months Ended June 30, 2014 Results

    Ascent Capital Group, Inc.

    For the three months ended June 30, 2014, Ascent reported net revenue of $134.7 million, an increase of 31.7% compared to $102.3 million for the three months ended June 30, 2013. For the six months ended June 30, 2014, net revenue increased 32.2% to $267.6 million. The increase in net revenue for the three and six month time periods is predominantly attributable to increases in Monitronics' subscriber accounts and average RMR per subscriber, which were both driven primarily by the August 16, 2013 acquisition of Security Networks.

    Ascent’s total cost of services for the three and six months ended June 30, 2014 increased 47.4% and 46.4% to $23.0 million and $45.1 million, respectively. This increase is primarily attributable to Monitronics' subscriber growth over the last twelve months, as well as increases in the number of HomeTouch customers and service costs, as described in more detail below.

    Selling, general & administrative (“SG&A”) costs increased 24.3% to $26.7 million for the three months ended June 30, 2014 and increased 29.2% to $53.3 million for the first six months of 2014. The increase is a result of higher Monitronics SG&A costs, which are attributable to subscriber growth over the last twelve months, redundant staffing in Dallas in advance of the transition of Security Networks operations from Florida to Texas and integration costs related to the acquisition of Security Networks.

    Ascent’s Adjusted EBITDA increased 24.3% to $88.5 million during the quarter and 23.8% to $176.5 million for the six months ended June 30, 2014. This increase is primarily due to revenue and subscriber growth at Monitronics.

    Ascent reported a net loss from continuing operations for the three and six months ended June 30, 2014 of $10.5 million and $19.9 million, compared to net income from continuing operations of $212,000 and $2.5 million in the same periods in 2013.

    Monitronics International, Inc.

    For the three months ended June 30, 2014, Monitronics reported net revenue of $134.7 million, an increase of 31.7% compared to $102.3 million for the three months ended June 30, 2013. For the six months ended June 30, 2014, net revenue increased 32.2% to $267.6 million. The increase in net revenue is attributable to a 25.9% increase in the number of subscriber accounts and a 3.2% increase in the average RMR per subscriber to $41.26 as of June 30, 2014. The growth in subscribers reflects the Security Networks acquisition in August 2013, which included over 200,000 subscriber accounts, as well as the acquisition of over 146,000 accounts through Monitronics’ authorized dealer program subsequent to June 30, 2013.

    Monitronics’ total cost of services for the three and six months ended June 30, 2014 increased 47.4% and 46.4% to $23.0 million and $45.1 million, respectively. The increases are primarily attributable to subscriber growth over the last twelve months, as well as increases in the number of HomeTouch customers and service costs. HomeTouch services include home automation services monitored across the cellular network.

    Monitronics’ SG&A costs increased 27.7% to $23.1 million for the three months ended June 30, 2014 and increased 35.5% to $46.1 million for the first six months of 2014. The increase is a result of higher Monitronics SG&A costs, which are attributable to subscriber growth over the last twelve months and redundant staffing and operating costs at Monitronics' Dallas, Texas headquarters in advance of transitioning Security Networks' operations from Florida to Texas. In addition, the Company incurred integration costs of $1.1 million and $2.2 million for the three and six months ended June 30, 2014, which primarily were for professional services related to the Security Networks transition.

    Monitronics’ Adjusted EBITDA for the three months ended June 30, 2014 was $90.3 million, an increase of 28.2% over the three months ended June 30, 2013. For the six months ended June 30, 2014, Monitronics’ Adjusted EBITDA increased 28.4% to $179.5 million. The increase is primarily due to revenue and subscriber growth at Monitronics driven by the acquisition of Security Networks and accounts acquired through Monitronics' authorized dealer program. Monitronics’ Adjusted EBITDA as a percentage of revenue was 67.0% in the second quarter of 2014, compared to 68.8% for the three months ended June 30, 2013. Monitronics’ Adjusted EBITDA as a percentage of revenue for the six months ended June 30, 2014 was 67.1%, compared to 69.1% for the prior year period.

    Monitronics reported a net loss for the three months ended June 30, 2014 of $8.5 million compared to net income of $592,000 in the prior year period. Monitronics reported a net loss for the six months ended June 30, 2014 of $16.4 million compared to net income of $1.9 million in the prior year period.

    The table below presents subscriber data for the twelve months ended June 30, 2014 and 2013:

    Twelve Months Ended June 30

    2014

    2013

    Beginning balance of accounts ...............................

    838,723

    711,832

    Accounts acquired  .................................................

    352,973

    228,040

    Accounts cancelled  ................................................

    (125,096)

    (98,107)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a) (b)...............................

    (10,494)

    (3,042)

    Ending balance of accounts ....................................

    1,056,106

    838,723

    Monthly weighted average accounts .......................

    1,014,902

    787,735

    Attrition rate ...........................................................

    (12.3)%

    (12.5)%


    (a)  Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)  Includes a net reduction of 561 subscriber accounts of acquisition adjustments related to the acquisition of Security Networks. These acquisition adjustments include 2,064 subscriber accounts that were proactively canceled following the acquisition of Security Networks in August 2013 because they were active with both Monitronics and Security Networks. The impact of these cancellations were partially offset by a favorable adjustment of 1,503 accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014.

     

    During the three months ended June 30, 2014 and 2013, Monitronics acquired 42,851 and 47,733 subscriber accounts, respectively, including bulk purchases of 2,900 accounts in the second quarter of 2014 and bulk purchases of 18,200 accounts in the same period of 2013. During the six months ended June 30, 2014 and 2013, Monitronics acquired 74,625 and 76,193 subscriber accounts, respectively. Acquired contracts for the twelve months ended June 30, 2014 include 203,898 accounts acquired in the Security Networks acquisition and approximately 2,900 accounts purchased in a bulk buy in the second quarter of 2014. Subscriber accounts acquired for the twelve months ended June 30, 2013 include approximately 111,200 accounts purchased in various bulk buys throughout the period.

    Monitronics’ trailing twelve month attrition for the period ending June 30, 2014 was 12.3% compared to 12.5% for the period ended June 30, 2013.

    Ascent Liquidity and Capital Resources

    At June 30, 2014, on a consolidated basis, Ascent had $155.2 million of cash, cash equivalents and marketable securities. A portion of these assets may be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the six months ended June 30, 2014, Monitronics used cash of $126.6 million to fund subscriber account acquisitions, net of holdback and guarantee obligations.

    At June 30, 2014, the existing long-term debt principal balance of $1.6 billion includes Monitronics’ Senior Notes, Credit Facility and Credit Facility revolver and Ascent's Convertible Notes. The Convertible Notes have an outstanding principle balance of $103.5 million as of June 30, 2014 and mature on July 15, 2020. Monitronics' Senior Notes have an outstanding principal balance of $585.0 million as of June 30, 2014 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $902.9 million as of June 30, 2014 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $41.5 million as of June 30, 2014 and becomes due on December 22, 2017.

    On June 16, 2011, the Company announced that it received authorization to implement a stock repurchase program, pursuant to which it may purchase up to $25.0 million of shares of the Company’s Series A common stock, par value $0.01 per share (the “Series A Common Stock”), from time to time. On November 14, 2013, the Company’s Board of Directors authorized the repurchase of an additional $25.0 million of its shares of Series A Common Stock. During the six months ended June 30, 2014, the Company purchased 308,609 shares of Series A Common Stock pursuant to these authorizations for approximately $22.2 million. Over $3.4 million in shares of Series A Common Stock may still be purchased under the authorizations.

    Conference Call

    Ascent will host a conference call today, August 7, 2014, at 5:00 p.m. ET. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 78864467. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through October 7, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 78864467.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, benefits from the integration of Security Networks’ operations, future financial prospects, the continuation of our stock repurchase program and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions (including those conducive to stock repurchases), and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc., (NASDAQ: ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC. Monitronics International, headquartered in Dallas, TX, is one of the nation's largest, fastest-growing home security alarm monitoring companies, providing security alarm monitoring services to more than 1,000,000 residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. For more information, see http://ascentcapitalgroupinc.com.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875

    ebartsch@sloanepr.com

    1 Comparisons are year-over-year unless otherwise specified.

    2 For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net loss for the three and six months ended June 30, 2014 totaled $10.3 million and $20.0 million, respectively.

     3 Monitronics’ net loss for the three and six months ended totaled $8.5 million and $16.4 million, respectively.

    4 Calculated as the average recurring monthly revenue per subscriber.

    (a)  Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)  Includes a net reduction of 561 subscriber accounts of acquisition adjustments related to the acquisition of Security Networks.  These acquisition adjustments include 2,064 subscriber accounts that were proactively canceled following the acquisition of Security Networks in August 2013 because they were active with both Monitronics and Security Networks.  The impact of these cancellations were partially offset by a favorable adjustment of 1,503 accounts associated with multi-site subscribers that were considered single accounts prior to the completion of the Security Networks integration in April 2014.



    Ascent Capital Group to Report Second Quarter Results on Aug. 7, 2014

    by Moni Blogger | Aug 07, 2014

    Englewood, CO – Aug. 7, 2014 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (NASDAQ: ASCMA) will issue a press release to report its results for the second quarter ended June 30, 2014 after the market closes on Thursday, Aug. 7, 2014. The company will host a conference call that day at 5 p.m. EDT in which management will provide an update on Ascent’s operations, including the financial performance of its wholly owned subsidiary, Monitronics International, Inc., and may also discuss future opportunities.

    Participating on the call will be Ascent’s Chairman and Chief Executive Officer, Bill Fitzgerald; Senior Vice President and Chief Financial Officer, Mike Meyers; and Executive Vice President, Mike Haislip. Mr. Haislip and Mr. Meyers are also executive officers of Monitronics. 

    To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 78864467. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through Oct. 7, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 78864467.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://ir.ascentcapitalgroupinc.com/index.cfm.

    About Ascent Capital Group, Inc.

    Ascent Capital Group, Inc. (NASDAQ: ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC. Monitronics International, headquartered in Dallas, TX, is one of the nation's largest, fastest-growing home security alarm monitoring companies, providing security alarm monitoring services to more than 1,000,000 residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. For more information, see http://ascentcapitalgroupinc.com/ 

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875
    ebartsch@sloanepr.com

    Ascent Capital Group Announces Financial Results For The Three Months Ended March 31, 2014

    by Moni Blogger | May 09, 2014

    Englewood, CO – May 8, 2014 – Ascent Capital Group, Inc. (“Ascent or the “Company”) (Nasdaq: ASCMA) has reported results for the three months ended March 31, 2014. 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 1 million residential and commercial customers. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three months ended March 31, 2014 increased 32.7%
    • Ascent’s Adjusted EBITDA[2] for the three months ended March 31, 2014 increased 23.3%
    • Monitronics’ Adjusted EBITDA[3] for three months ended March 31, 2014 increased 28.6%
      • Monitronics subscriber accounts as of March 31, 2014 increased 27.9% to 1,046,785
      • Average RMR per subscriber[4] as of March 31, 2014 increased 3.5% to $41.15
    • Management completed the transitioning of Security Networks’ operations from Florida to Texas in April 2014

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “We are pleased with Monitronics’ solid financial performance and the successful completion of the Security Networks integration, which was finalized in April.”

    “At the holding company level, our balance sheet remains strong and we continue to pursue productive and accretive investments in the alarm monitoring industry and adjacent sectors, while being opportunistic about share repurchases.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “During the first quarter Monitronics revenue increased 32% while Adjusted EBITDA grew a solid 28%, despite severe winter weather that periodically affected our dealers across the country. Total subscriber accounts were up 28% over the first quarter of last year and our attrition level increased modestly from 12.2% to 12.3%, and was unchanged from year-end.

    “The first quarter also included the ongoing Security Networks’ integration and, due to the strong efforts of our operating team, on April 24th we successfully completed the transition of all Security Networks accounts to be serviced and monitored out of our call center in Dallas. We originally projected that operational efficiencies from the combined business would drive $4-6 million in annual cost savings, and we are on track to exceed those estimates. We are excited about where our business stands and its future prospects.”


    Three Months Ended March 31, 2014 Results

    Ascent Capital Group, Inc.

    For the three months ended March 31, 2014, Ascent reported net revenue of $132.9 million, an increase of 32.7% compared to $100.2 million for the three months ended March 31, 2013. This increase in net revenue is primarily attributable to increases in Monitronics’ subscriber accounts and average RMR per subscriber, which were both driven in part by the August 16, 2013 acquisition of Security Networks.

    Ascent’s total cost of services for the three months ended March 31, 2014 increased 45.3% to $22.1 million. This increase is primarily attributable to Monitronics’ subscriber growth over the last twelve months, as well as increases in cellular and service costs, as described in more detail below. 

    Selling, general & administrative (“SG&A”) costs for the three months ended March 31, 2014 increased 34.5% to $26.5 million. The increase is primarily attributable to increases in Monitronics SG&A expenses as well as the inclusion of Security Networks SG&A of $3.9 million for the three months ended March 31, 2014. The increase in Monitronics SG&A is partly attributable to redundant staffing and operating costs at our Dallas, Texas headquarters and integration costs incurred in advance of transitioning Security Networks’ operations from Florida to Texas.

    For the quarter, Ascent’s Adjusted EBITDA increased 23.3% to $87.9 million. This increase is primarily due to revenue and subscriber growth at Monitronics.

    Ascent reported a net loss from continuing operations for the three months ended March 31, 2014 of $9.4 million, compared to net income of $2.3 million for the same period in 2013.

    Monitronics International, Inc.

     

    For the three months ended March 31, 2014, Monitronics reported net revenue of $132.9 million, an increase of 32.7% compared to $100.2 million for the three months ended March 31, 2013. The increase in net revenue is attributable to a 27.9% increase in the number of subscriber accounts and a 3.5% increase in the average RMR per subscriber to $41.15 as of March 31, 2014. The growth in subscribers reflects the Security Networks acquisition in August 2013, which included over 200,000 subscriber accounts, as well as the acquisition of over 135,000 accounts through Monitronics’ authorized dealer program subsequent to March 31, 2013, and the purchase of approximately 18,200 accounts in bulk buys over the last 12 months.

    Monitronics’ total cost of services for the three months ended March 31, 2014 increased 45.3% to $22.1 million. The increase for the three months ended March 31, 2014 is primarily attributable to subscriber growth over the last twelve months, as well as increases in cellular and service costs. Cellular costs increased due to more accounts being monitored across the cellular network, which often include home automation services. This has also resulted in higher service costs as existing subscribers upgrade their systems.

    Monitronics’ SG&A costs for the three months ended March 31, 2014 increased 44.5% to $23.0 million compared to the prior year period. The increase is primarily attributable to subscriber growth over the last twelve months.  Increased SG&A costs are also attributable to redundant staffing and operating costs at Monitronics’ Dallas, Texas headquarters and integration costs incurred in advance of transitioning Security Networks’ operations from Florida to Texas. Integration costs for the three months ended March, 31, 2014, were $1.1 million, which primarily relate to professional services rendered. 

    Monitronics’ Adjusted EBITDA for the three months ended March 31, 2014 was $89.3 million, an increase of 28.6% over the three months ended March 31, 2013. The increase is primarily due to revenue and subscriber growth at Monitronics driven by accounts acquired through Monitronics’ authorized dealer program, the acquisition of Security Networks and bulk account purchases over the last twelve months. Monitronics’ Adjusted EBITDA as a percentage of revenue was 67.2% in the first quarter of 2014, compared to 69.3% for the three months ended March 31, 2013.

    Monitronics’ reported a net loss for the three months ended March 31, 2014 of $7.9 million compared to net income of $1.3 million in the prior year period.

    The table below presents subscriber data for the twelve months ended March 31, 2014 and 2013:

    Twelve Months Ended
    March 31,

    2014

    2013

    Beginning balance of accounts .............................................

    818,335

    706,881

    Accounts acquired ...............................................................

    357,855

    206,665

    Accounts cancelled ..............................................................

    (118,688

    )

    (92,696

    )

    Canceled accounts guaranteed by dealer and acquisition adjustment (a) (b) ..............................................................

    (10,717

    )

    (2,515

    )

    Ending balance of accounts .................................................

    1,046,785

    818,335

    Monthly weighted average accounts .....................................

    962,527

    759,180

    Attrition rate .........................................................................

    (12.3

    )%

    (12.2

    )%


    (a)  Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)  Includes 2,064 subscriber accounts that were proactively cancelled following the acquisition of Security Networks in August 2013 because they were active with both Monitronics and Security Networks.

    During the three months ended March 31, 2014, Monitronics acquired 31,774 subscriber accounts. Acquired contracts for the twelve months ended March 31, 2014 include 203,898 accounts acquired in the Security Networks acquisition, which was completed on August 16, 2013.  In addition, subscriber accounts acquired for the twelve months ended March 31, 2013 include approximately 93,000 accounts purchased in a bulk buy on October 25, 2012. 

    Monitronics’ trailing twelve month attrition for the period ending March 31, 2014 was 12.3%, compared to 12.2% for the period ended March 31, 2013.

    Ascent Liquidity and Capital Resources

    At March 31, 2014, on a consolidated basis, Ascent had $189.5 million of cash, cash equivalents and marketable securities, of which $26.7 million was used to fund Monitronics’ semi-annual interest payment on its Senior Notes on April 1, 2014.  A portion of these assets may also be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the three months ended March 31, 2014, Monitronics used cash of $53.8 million to fund subscriber account acquisitions, net of holdback and guarantee obligations.

    At March 31, 2014 the existing long-term debt principal balance of $1.6 billion includes Monitronics’ Senior Notes, Credit Facility and Credit Facility revolver and Ascent’s Convertible Notes. The Convertible Notes have an outstanding principle balance of $103.5 million as of March 31, 2014 and mature on July 15, 2020. Monitronics’ Senior Notes have an outstanding principal balance of $585.0 million as of March 31, 2014 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $905.2 million as of March 31, 2014 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $37.5 million as of March 31, 2014 and becomes due on December 22, 2017.

    Conference Call

    Ascent will host a conference call today, May 8, 2014, at 5:00 p.m. EDT. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 34486038. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through July 8, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 34486038.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, benefits from the integration of Security Networks’ operations, future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

     

    Ascent Capital Group, Inc. (Nasdaq: ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC. Monitronics International, headquartered in Dallas, TX, is one of the nation's largest, fastest-growing home security alarm monitoring companies, providing security alarm monitoring services to more than 1 million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. For more information, see http://ascentcapitalgroupinc.com/ 

    ###

                Contact:

                Erica Bartsch

                Sloane & Company

                212-446-1875

                ebartsch@sloanepr.com



    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net loss from continuing operations for the three months ended March 31, 2014 totaled $9.4 million.

    [3] Monitronics’ net loss for the three months ended March 31, 2014 totaled $7.9 million.

    [4] Calculated as the average recurring monthly revenue per subscriber.

    Ascent Capital Group Announces Financial Results For The Three Months And Full Year Ended December 31, 2013

    by Moni Blogger | Feb 27, 2014

    Englewood, CO – February 26, 2014 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three months and full year ended December 31, 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 1,000,000 residential and commercial customers as of December 31, 2013. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three and twelve months ended December 31, 2013 increased 39.6% and 30.8%, respectively, driven by growth in the number of subscriber accounts and the related increase in monthly recurring revenue
    • Ascent’s Adjusted EBITDA[2] for the three and twelve months ended December 31, 2013 increased 23.0% and 27.5%, respectively
    • Ascent’s consolidated balance sheet remains strong with $174.2 million of cash and marketable securities as of December 31, 2013
    • Monitronics’ Adjusted EBITDA for the three and twelve months ended December 31, 2013 increased 36.0% and 29.5%
      • Monitronics subscriber accounts as of December 31, 2013 increased 28.8% to 1,046,155
      • Average RMR per subscriber[3] as of December 31, 2013 increased 3.5% to $40.90

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “2013 was another great year for our business. The acquisition of Security Networks, coupled with the continuing growth of the core account base within Monitronics, led to another quarter and year of very strong revenue and Adjusted EBITDA growth. The integration of Security Networks is progressing on plan and the dealer affiliates we added through that acquisition are contributing as expected to our core growth engine. We are very pleased with where the business stands today and are encouraged by the prospects for its continued expansion.”

    “We continue to be very bullish on the residential alarm monitoring business. We like the management team and business we have created, the strong growth we have achieved, and the investment opportunities we continue to see within the sector. We remain committed to pursuing additional investments within the industry that will further strengthen our already scaled position and enhance our growth profile and shareholder value.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “We are pleased with our solid fourth quarter and full year 2013 results as we achieved strong operational execution across all areas of our business. Our high quality portfolio of accounts, supported by the acquisition of Security Networks, continues to perform well with total subscriber accounts up 29% for the twelve months ended December 31, 2013.”

    Mr. Haislip continued, “We remain confident that the residential security market offers attractive growth opportunities and we believe it is a great time to be involved in the industry. Home automation and interactive services are being increasingly embraced by our customers, with approximately 57% of new subscribers signing up for some form of these services in the quarter. As always, we remain disciplined in our approach to managing our business. Our consistent operating performance and the relative predictability of our model give us tremendous confidence in our prospects as we move into 2014 and beyond.”

    Three and Twelve Months Ended December 31, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended December 31, 2013, Ascent reported net revenue of $132.8 million, an increase of 39.6% compared to $95.1 million for the three months ended December 31, 2012. For the twelve months ended December 31, 2013 net revenue increased 30.8% to $451.0 million. The increase in net revenue for the three and twelve month time periods is primarily attributable to the growth in the number of Monitronics’ subscriber accounts and the increase in average RMR per subscriber which were both driven in part by the August 16, 2013 acquisition of Security Networks.

    Ascent’s total cost of services for the three and twelve months ended December 31, 2013 increased 58.3% and 48.3% to $23.2 million and $74.1 million, respectively. The increase for the three and twelve months ended December 31, 2013 is primarily attributable to increases in cellular and service costs at Monitronics. Cellular costs have increased due to more accounts being monitored across the cellular network, which often include interactive and home automation services. This has also resulted in higher service costs as existing subscribers upgrade their systems. Also contributing to the increase for the three and twelve months ended December 31, 2013 was the inclusion of $5.6 million and $8.2 million in Security Networks costs, respectively.

    Selling, general & administrative (“SG&A”) expenses for the three months ended December 31, 2013 increased 36.0% to $26.9 million, and increased 24.5% to $92.0 million for the full year 2013. The increases are primarily attributable to increases in Monitronics SG&A costs as well as the inclusion of Security Networks SG&A of $4.3 million and $6.5 million for the three and twelve months ended December 31, 2013, respectively. The increase in Monitronics SG&A is attributable to increased payroll and other expenses due to Monitronics’ subscriber growth in 2013. For the full year, Monitronics also incurred acquisition and integration costs of $2.5 million and $1.3 million, respectively, related to the professional services and other costs incurred in connection with the Security Networks acquisition. Additionally, for the full year, Ascent’s consolidated stock-based compensation expense increased approximately $2.9 million, related to restricted stock and option awards granted to certain executives of Ascent in late 2012 and throughout 2013.

    For the three months ended December 31, 2013, Ascent’s Adjusted EBITDA increased 23.0% to $86.3 million. For the full year 2013, Ascent’s Adjusted EBITDA increased 27.5% to $304.5 million. The increases in Adjusted EBITDA for both periods was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs. Additionally, the percentage increase in Adjusted EBITDA for the three months ended December 31, 2013 was impacted by a gain on sale of Ascent real estate of approximately $7.4 million recognized in the three months ended December 31, 2012.

    Ascent reported a net loss from continuing operations for the three and twelve months ended December 31, 2013 of $12.6 million and $22.5 million, respectively, compared to a net loss from continuing operations of $585,000 and $25.0 million for the same periods in 2012.

    Monitronics International, Inc.

    For the three and twelve months ended December 31, 2013, Monitronics reported net revenue of $132.8 million and $451.0 million, increases of 39.6% and 30.8%, respectively. The increase in net revenue for the three and twelve month time periods is primarily attributable to growth in the number of Monitronics’ subscriber accounts and the increase in average RMR per subscriber. The growth in subscriber accounts reflects the effects of the acquisition of Security Networks in August 2013, which included over 200,000 subscriber accounts, the acquisition of over 136,000 accounts through Monitronics’ authorized dealer program subsequent to December 31, 2012, and the purchase of approximately 18,200 accounts in various bulk buys over the last 12 months. Average RMR per subscriber increased from $39.50 as of December 31, 2012 to $40.90 as of December 31, 2013. Partially offsetting the increase in net revenue for the twelve months ended December 31, 2013 is the negative impact of a $2.7 million fair value adjustment that reduced deferred revenue acquired in the Security Networks acquisition.

    Monitronics’ total cost of services for the three and twelve months ended December 31, 2013 increased 58.3% and 48.3% to $23.2 million and $74.1 million, respectively. The increase for the three and twelve months ended December 31, 2013 is primarily attributable to increases in cellular and service costs.  Cellular costs have increased due to more accounts being monitored across the cellular network, which often include interactive and home automation services.  This has also resulted in higher service costs as existing subscribers upgrade their systems.  Also contributing to the increase for the three and twelve months ended December 31, 2013 was the inclusion of $5.6 million and $8.2 million in Security Networks costs, respectively.

    Monitronics’ SG&A costs for the three months and twelve months ended December 31, 2013 increased 42.2% to $23.2 million and 28.5% to $77.2 million. The increased Monitronics SG&A costs for the three and twelve months ended December 31, 2013 are attributable to increased payroll and other expenses due to Monitronics subscriber growth in 2013, as well as the inclusion of Security Networks SG&A of $4.3 million and $6.5 million, respectively.  For the full year, SG&A expense also includes acquisition and integration costs of $2.5 million and $1.3 million, respectively, related to professional services and other costs incurred in connection with the Security Networks acquisition.

    Monitronics’ Adjusted EBITDA for the three months ended December 31, 2013 was $87.8 million, an increase of 36.0% versus the three months ended December 31, 2012. For the twelve months ended December 31, 2013, Monitronics’ Adjusted EBITDA increased 29.5% to $305.3 million. The increase in Adjusted EBITDA for the quarter and full year is primarily due to revenue and subscriber growth at Monitronics driven by accounts acquired through Monitronics’ authorized dealer program, the acquisition of Security Networks and various bulk account purchases over the last twelve months. Monitronics’ Adjusted EBITDA as a percentage of revenue was 66.1% in the quarter ended December 31, 2013, compared to 67.9% for the three months ended December 31, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the twelve months ended December 31, 2013 totaled 67.7%, compared to 68.3% for the year-ago period.

    Monitronics reported net losses for the three and twelve months ended December 31, 2013 of $10.3 million and $17.6 million, respectively.

    The table below presents subscriber data for the twelve months ended December 31, 2013 and 2012:

    Twelve Months Ended December 31

    2013

    2012

    Beginning balance of accounts ...............................

    812,539

    700,880

    Accounts acquired  .................................................

    354,541

    202,379

    Accounts cancelled  ................................................

    (111,889)

    (89,724)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a) (b)...............................

    (9,036)

    (996)

    Ending balance of accounts ....................................

    1,046,155

    812,539

    Monthly weighted average accounts .......................

    908,921

    732,694

    Attrition rate ...........................................................

    (12.3)

    (12.2)


    (a)  Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)  Includes 2,064 subscriber accounts that were proactively cancelled during 2013 which were active with both Monitronics and Security Networks upon acquisition.

     

    During the three months ended December 31, 2013, Monitronics acquired 37,341 subscriber accounts. Acquired contracts for the twelve months ended December 31, 2013 include 203,898 accounts acquired in the Security Networks acquisition, which was completed on August 16, 2013, and the acquisition of over 136,000 accounts through Monitronics’ authorized dealer program subsequent to December 31, 2012, and the purchase of approximately 18,200 accounts in various bulk buys over the last 12 months.

    Monitronics’ trailing twelve month attrition for the period ending December 31, 2013 was 12.3% compared to 12.2% for the year ended December 31, 2012.

    Ascent Liquidity and Capital Resources

    At December 31, 2013, on a consolidated basis, Ascent had $44.7 million of cash and cash equivalents and $129.5 million of marketable securities. The company may use a portion of these assets to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the twelve months ended December 31, 2013, Monitronics used cash of $234.9 million to fund subscriber account acquisitions, excluding accounts acquired in the Security Networks acquisition and net of holdback and guarantee obligations.

    At December 31, 2013, the existing long-term debt principal balance of $1.6 billion includes Monitronics’ Senior Notes, Credit Facility and Credit Facility revolver and Ascent’s Convertible Notes. The Convertible Notes have an outstanding principal balance of $103.5 million as of December 31, 2013 and mature on July 15, 2020. Monitronics’ Senior Notes have an outstanding principal balance of $585.0 million as of December 31, 2013 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $907.5 million as of December 31, 2013 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $19.5 million as of December 31, 2013 and becomes due on December 22, 2017.

    Conference Call

    Ascent will host a conference call today, February 26, 2014, at 5:00 p.m. ET. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 59199384. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through April 5, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 59199384.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the integration of Security Networks’ operations, future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics International Inc., one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    ###

                Contact:

                Erica Bartsch

                Sloane & Company

                212-446-1875

                ebartsch@sloanepr.com

      

     

    Ascent Capital Group To Report Fourth Quarter And Full Year 2013 Results On February 26, 2014

    by Moni Blogger | Feb 17, 2014

    Englewood, CO – February 11, 2014 – Ascent Capital Group Inc. (“Ascent” or the “Company”) (NASDAQ: ASCMA) will issue a press release to report its results for the three and twelve months ended December 31, 2013 after the market close on Wednesday, February 26, 2014. The company will host a conference call that day at 5:00 p.m. ET in which management will provide an update on Ascent’s operations, including the financial performance of its wholly owned subsidiary, Monitronics International, Inc. and may also discuss future opportunities.

    Participating on the call will be Ascent’s Chairman and Chief Executive Officer, Bill Fitzgerald; Senior Vice President and Chief Financial Officer, Mike Meyers; and Executive Vice President, Mike Haislip. Messrs. Haislip and Meyers are also executive officers of Monitronics.

    To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 59199384. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through April 6, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 59199384.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics International Inc., one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875
    ebartsch@sloanepr.com

    Ascent Capital Group Announces Financial Results For The Three And Nine Months Ended September 30, 2013

    by Moni Blogger | Nov 14, 2013

    Englewood, CO – November 12, 2013 – Ascent Capital Group Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and nine months ended September 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 1,000,000 residential and commercial customers. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three and nine months ended September 30, 2013 increased 36.8% and 27.4%, respectively, driven by growth in the number of subscriber accounts and the related increase in monthly recurring revenue
    • Ascent’s Adjusted EBITDA[2] for the three and nine months ended September 30, 2013 increased 35.2% and 29.4%, respectively
    • Monitronics successfully completed the acquisition of Security Networks
    • Monitronics Adjusted EBITDA for the three and nine months ended September 30, 2013 increased 35.2% and 27.1%
    • Monitronics subscriber accounts as of September 30, 2013 increased 45.2% year-over-year to 1,041,740 reflecting organic growth and the acquisition of over 200,000 subscriber accounts in the Security Networks acquisition
    • Average RMR per subscriber[3] as of September 30, 2013 increased 6.3% to $40.70

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “I am very pleased with the Company’s performance and execution in the third quarter, highlighted by the successful completion of the acquisition of Security Networks, the integration of which is proceeding as planned.  The Company also delivered solid financial performance with revenue and Adjusted EBITDA each up over 35%, a testament to the continued strength of the Monitronics business model. Looking ahead, we remain committed to identifying accretive acquisition opportunities, making certain that we continue to put shareholder capital to work in an effective and productive manner.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “Monitronics delivered another solid quarter with strong growth in revenue, Adjusted EBITDA, and total subscribers. We remain excited about the Security Networks acquisition and the opportunities ahead. We are working diligently to effectively integrate the two businesses, and remain focused on ensuring a smooth transition for both our dealers and our customers. I am extremely pleased with our efforts to date and believe the combined company will be well positioned for growth in the future.”

    Three and Nine Months Ended September 30, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended September 30, 2013, Ascent reported net revenue of $115.8 million, an increase of 36.8% compared to $84.7 million for the three months ended September 30, 2012. For the nine months ended September 30, 2013 net revenue increased 27.4% to $318.3 million. The increase in net revenue for the three and nine month time periods is primarily attributable to the growth in the number of Monitronics’ subscriber accounts and the increase in average RMR per subscriber.

    Ascent’s total cost of services for the three and nine months ended September 30, 2013 increased 56.5% and 44.2% to $20.2 million and $51.0 million, respectively. The increase for the three and nine months ended September 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and in those having interactive and home automation services, which result in higher operating and service costs. Also contributing to the increase was the inclusion of Security Networks monitoring costs of $2.7 million for both the three and nine months ended September 30, 2013.

    Selling, general & administrative (“SG&A”) costs for the three months ended September 30, 2013 increased 30.8% to $23.9 million, and increased 20.4% to $65.1 million for the first nine months of 2013. The increase is primarily attributable to increases in Monitronics SG&A costs as well as the inclusion of Security Networks SG&A costs of $2.1 million. The increase in Monitronics SG&A costs are attributable to increased payroll expenses of approximately $581,000 and $2.2 million for the three and nine months ended September 30, 2013, and acquisition and integration costs related to professional services and other costs incurred in connection with the Security Networks acquisition.  Acquisition costs recognized in the three and nine months ended September 30, 2013 were $1.0 million and $2.5 million. Integration costs recognized in both the three and nine months ended were $535,000. Additionally, Ascent’s consolidated stock-based compensation expense increased approximately $387,000 and $1.6 million for the three and nine months ended September 30, 2013, related to restricted stock and stock option awards granted to certain executives and directors of Ascent in 2012.

    For the three months ended September 30, 2013, Ascent’s Adjusted EBITDA increased 35.2% to $75.7 million. During the first nine months of 2013, Ascent’s Adjusted EBITDA increased 29.4% to $218.2 million. The increases in Adjusted EBITDA for both periods was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs.

    Ascent reported a net loss from continuing operations for the three and nine months ended September 30, 2013 of $12.5 million and $10.0 million, compared to a net loss from continuing operations of $13.7 million and $24.4 million for the three and nine months ended September 30, 2012.

    Monitronics International, Inc.

    For the three months ended September 30, 2013, Monitronics reported net revenue of $115.8 million, an increase of 36.8% compared to $84.7 million for the three months ended September 30, 2012. For the nine months ended September 30, 2013 net revenue increased 27.4% to $318.3 million. The increase in net revenue for the three and nine months ended September 30, 2013 is attributable to the growth in the number of subscriber accounts and the increase in average RMR per subscriber.  The growth in subscriber accounts reflects the effects of the acquisition of Security Networks, which included over 200,000 subscriber accounts, purchases of over 120,000 accounts through Monitronics’ authorized dealer program subsequent to September 30, 2012, and the purchase of approximately 111,000 accounts in various bulk buys over the last 12 months.  In addition, average RMR per subscriber increased from $38.28 as of September 30, 2012 to $40.70 as of September 30, 2013.  Partially offsetting the increase in net revenue for the three and nine months ended September 30, 2013 is the negative impact of a $2.5 million fair value adjustment that reduced deferred revenue acquired in the Security Networks acquisition.

    Monitronics’ total cost of services for the three and nine months ended September 30, 2013 increased 56.5% and 44.2% to $20.2 million and $51.0 million. The increase for the three and nine months ended September 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and in those having interactive and home automation services, which result in higher operating and service costs. Also contributing to the increase was the inclusion of $2.7 million in Security Networks monitoring costs.

    Monitronics’ SG&A costs for the three months ended September 30, 2013 increased 35.3% to $20.0 million and 23.4% to $54.0 million for the first nine months of 2013. The increased Monitronics SG&A costs are attributable to increased payroll expenses of approximately $581,000 and $2.2 million for the three and nine months ended September 30, 2013, and acquisition and integration costs related to professional services and other costs incurred in connection with the Security Networks acquisition. Acquisition costs recognized in the three and nine months ended September 30, 2013 were $1.0 million and $2.5 million. Integration costs recognized in the three and nine months ended are $535,000.

    Monitronics’ Adjusted EBITDA for the three months ended September 30, 2013 was $77.6 million, an increase of 35.2% versus the three months ended September 30, 2012. For the nine months ended September 30, 2013, Monitronics’ Adjusted EBITDA increased 27.1% to $217.5 million. The increase in Adjusted EBITDA for the quarter is primarily due to revenue and subscriber growth at Monitronics driven by the acquisition of Security Networks, purchases through Monitronics’ authorized dealer program and acquisitions of various bulk buys over the last twelve months. Monitronics’ Adjusted EBITDA as a percentage of revenue was 67.0% in the quarter ended September 30, 2013, compared to 67.8% for the three months ended September 30, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the nine months ended September 30, 2013 totaled 68.3%, compared to 68.5% for the year-ago period.

    Monitronics reported net losses from continuing operations for the three and nine months ended September 30, 2013 of $9.3 million and $7.4 million, respectively.

    The table below presents subscriber data for the twelve months ended September 30, 2013 and 2012:

    Twelve Months Ended
    September 30,

    2013

    2012

    Beginning balance of accounts ......................................................

    717,488

    697,581

    Accounts purchased ......................................................................

    437,860

    106,582

    Accounts canceled.........................................................................

    (106,859

    )

    (84,523

    )

    Canceled accounts guaranteed by dealer and acquisition adjustment (a) (b)..........................................................................................

    (6,749

    )

    (2,152

    )

    Ending balance of accounts ..........................................................

    1,041,740

    717,488

    Monthly weighted average accounts ..............................................

    847,673

    706,752

    Attrition rate ..................................................................................

    (12.6

    )%

    (12.0

    )%


    (a)   Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)   Includes 1,946 subscriber accounts that were proactively cancelled during the third quarter of 2013 which were active with both Monitronics and Security Networks, upon acquisition.

    Monitronics acquired 203,898 accounts in the Security Networks acquisition, which was completed on August 16, 2013.  Excluding the Security Networks acquisition, during the three and nine months ended September 30, 2013, Monitronics purchased 37,109 and 113,302 accounts, respectively.  Account purchases for the nine months ended September 30, 2013 reflect bulk buys of approximately 18,200 accounts purchased in the second quarter of 2013. 

    Monitronics’ trailing twelve month attrition for the period ending September 30, 2013 increased to 12.6% compared to 12.0% for the twelve months ended September 30, 2012.

    Ascent Liquidity and Capital Resources

    At September 30, 2013, on a consolidated basis, Ascent had $80.9 million of cash and cash equivalents, $2.7 million of restricted cash, and $145.9 million of marketable securities on a consolidated basis. The company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund potential strategic acquisitions or investment opportunities.

    During the nine months ended September 30, 2013, Monitronics used cash of $174.5 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At September 30, 2013, the existing long-term debt principal of $1.6 billion includes Ascent’s Convertible Notes and Monitronics’ Senior Notes, Credit Facility, and Credit Facility revolver. The Convertible Notes have an outstanding principal balance of $103.5 million as of September 30, 2013 and mature July 15, 2020. Monitronics’ Senior Notes have an outstanding principal balance of $580.0 million as of September 30, 2013, which includes the impact of eliminating $5.0 million in aggregate principal amount of the Senior Notes that were purchased by Ascent in the third quarter of 2013, and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $909.8 million as of September 30, 2013 and requires principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018.  The Credit Facility revolver has an outstanding balance of $25.6 million as of September 30, 2013 and becomes due on December 22, 2017.

    On October 25, 2013, Ascent purchased 351,734 shares of its Series B common stock (the “Purchased Shares”) from Dr. John Malone, for aggregate cash consideration of approximately $32.7 million. Following the transaction, Dr. Malone continues to beneficially own 351,734 Ascent Series B shares and 199,789 Ascent Series A shares, which together represent approximately 21% of the Company’s outstanding voting power. The Purchased Shares will be cancelled and returned to the status of authorized and unissued.

    Conference Call

    Ascent will host a conference call today at 5:00 p.m. ET on November 12, 2013. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 86061660. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through November 19, 2013 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 86061660.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the integration of acquired assets and businesses (including the consolidated performance of Monitronics after giving effect to the ongoing integration of Security Networks), future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, Monitronics’ ability to realize synergies associated with the acquisition of Security Networks, Monitronics’ ability to successfully complete the integration of Security Networks, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC.  Monitronics, headquartered in Dallas, TX is one of the nation's largest, fastest-growing home security alarm monitoring companies.

    ###

                Contact:

                Erica Bartsch

                Sloane & Company

                212-446-1875

                ebartsch@sloanepr.com

       




    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net loss for the three and nine months ended September 30, 2013 totaled $12.6 million and $9.7 million, respectively.

    [3] Calculated as the average monthly revenue per subscriber.

    Monitronics International Completes Acquisition of Security Networks

    by Moni Blogger | Aug 16, 2013


    Englewood, CO – August 16, 2013 – Ascent Capital Group Inc. (“Ascent or the “Company”) (NASDAQ: ASCMA) announced today that its primary operating subsidiary, Monitronics International, Inc. (“Monitronics”), has completed the previously announced acquisition of Security Networks, LLC for total cash consideration of $482.9 million (after giving effect to certain closing adjustments) plus 253,333 newly issued shares of Ascent Series A common stock.

    The cash portion of the Security Networks purchase price was funded by cash on hand at Ascent and new debt consisting of $103.5 million of Convertible Notes issued by Ascent, $175.0 million of New Senior Notes issued by Monitronics and an Incremental Term Loan of $225.0 million issued under Monitronics’ existing Credit Facility.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation’s largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    Ascent Capital Group Announces Financial Results for the Three and Six Months Ended June 30, 2013

    by Moni Blogger | Aug 14, 2013

    Englewood, CO – August 8, 2013 – 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.

    Highlights[1]:

    • 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.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “Monitronics continued to deliver strong growth in the second quarter. Both revenue and Adjusted EBITDA increased a solid 23% and total subscriber accounts were up 17.8%, on strong growth in account acquisitions through our dealer program combined with 18,200 in bulk account purchases.”

    Mr. Haislip continued, “Our recently announced proposed acquisition of Security Networks will bring our total subscriber base to over 1 million accounts, and position the company very well for continued growth.  Because of its superior operating performance, strong growth profile and impressive and growing dealer affiliate network, we are confident Security Networks will be a strong complement to Monitronics’ existing operations. More importantly, the combination of two very successful home security industry leaders positions us for accelerated growth and ongoing strong profitability.”

    Three and Six Months Ended June 30, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended June 30, 2013, Ascent reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to increases in Monitronics’ subscriber accounts and average monthly revenue per subscriber.

    Ascent’s total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increase for the three and six months ended June 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.  

    Selling, general & administrative (“SG&A”) costs increased 19.3% to $21.5 million for the three months ended June 30, 2013 and increased 15.1% to $41.2 million for the first six months of 2013. The increase is primarily attributable to increases in Monitronics SG&A costs due to increased payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs. Additionally, Ascent’s consolidated stock-based compensation expense increased approximately $692,000 and $1.2 million for the three and six months ended June 30, 2013, related to restricted stock and option awards granted to certain employees.

    Ascent’s Adjusted EBITDA increased 25.9% to $71.2 million during the quarter and 26.5% to $142.5 million for the six months ended June 30, 2013. The increase in Adjusted EBITDA for the three and six months ended June 30, 2013 was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs.

    Ascent reported net income from continuing operations for the three and six months ended June 30, 2013 of $212,000 and $2.5 million, respectively, compared to a net loss from continuing operations of $5.7 million and $10.7 million for the three and six months ended June 30, 2012.

    Monitronics International

    For the three months ended June 30, 2013, Monitronics reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to a 17.8% increase in the number of subscriber accounts, a 24.0% increase in recurring monthly revenue to $33.5 million and a 5.3% increase in average monthly revenue per subscriber to $39.98 as of June 30, 2013.

    Monitronics’ total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increases are primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.

    Monitronics’ SG&A costs increased 23.6% to $18.1 million for the three months ended June 30, 2013 and increased 17.3% to $34.0 million for the first six months of 2013. The increases are attributable to higher payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs incurred in the three and six months ended June 30, 2013.

    Monitronics’ Adjusted EBITDA for the three months ended June 30, 2013 was $70.4 million, an increase of 23.1% over the three months ended June 30, 2012. For the six months ended June 30, 2013, Monitronics’ Adjusted EBITDA increased 23.0% to $139.8 million. The increase in Adjusted EBITDA is primarily due to revenue and subscriber growth. Monitronics’ Adjusted EBITDA as a percentage of revenue was 68.8% in the second quarter of 2013, compared to 68.7% for the three months ended June 30, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the six months ended June 30, 2013 totaled 69.1%, compared to 68.8% for the prior year period.

    Monitronics reported net income for the three months ended June 30, 2013 of $592,000 compared to a net loss of $3.8 million in the prior year period. Net income for the six months ended June 30, 2013 was $1.9 million compared to a net loss of $7.5 million in the prior year period.

    The table below summarizes subscriber data for the twelve months ended June 30, 2013:

    For the three months ended June 30, 2013, Monitronics purchased 47,733 subscriber accounts, compared to the 26,358 subscriber accounts in the three months ended June 30, 2012. During the six months ended June 30, 2013 and 2012, Monitronics purchased 76,193 and 50,532 subscriber accounts, respectively. The account purchases for the three and six months ended June 30, 2013 include bulk buy purchases of approximately 18,200 accounts.

    Monitronics’ trailing twelve month attrition for the period ended June 30, 2013 increased to 12.5% compared to 11.7% for the twelve months ended June 30, 2012.

    Security Networks Transaction

    On July 10, 2013 Monitronics signed a definitive agreement to acquire Security Networks, LLC. The transaction consideration will consist of $487.5 million of cash and 253,333 newly issued shares of Ascent Series A common stock with an agreed value of $20 million. The purchase price is subject to adjustment at closing and is based upon Security Networks delivering recurring monthly revenue (as defined in the acquisition agreement, “Acquisition RMR”) of $8.8 million. The transaction will be financed primarily with new debt at the Ascent and Monitronics levels, as well as an incremental amount of cash from Ascent's balance sheet. The transaction is expected to close in mid-August 2013, subject to customary closing conditions, including regulatory approvals.

    The cash portion of the Security Networks Purchase Price will be funded by cash on hand at Ascent Capital and new debt, which is to consist of the $103.5 million of Convertible Notes issued by Ascent Capital, the $175.0 million New Senior Notes issued by Monitronics and the expected Incremental Term Loan of $225 million to be provided under Monitronics’ Credit Facility.  The Convertible Notes offering was completed on July 17, 2013 with the notes maturing on July 15, 2020 and bearing interest at 4.00% per annum from July 17, 2013.  Interest will be payable semi-annually on January 15 and July 15 of each year. 

    The New Senior Notes offering was completed on July 17, 2013 by Monitronics Escrow Corporation (the “Escrow Issuer”), a wholly-owned subsidiary of Ascent Capital, and the proceeds from this offering have been placed in escrow.  In connection with the completion of the Security Networks Acquisition, the Escrow Issuer will be merged into Monitronics and Monitronics will assume the New Senior Notes.  The New Senior Notes will mature on April 1, 2020 and bear interest at 9.125% per annum, with interest being payable semi-annually on April 1 and October 1 of each year. 

    Monitronics expects that the Incremental Term Loan will be entered into upon the closing of the Security Networks Acquisition.  Monitronics expects that the Incremental Term Loan will mature on March 23, 2018 and will bear interest based on LIBOR plus an applicable margin to be agreed, subject to a LIBOR floor to be agreed.  In addition, Monitronics has evaluated its borrowing capacity subsequent to the Security Networks Acquisition, upon which it expects to increase the borrowing available under Monitronics’ Credit Facility revolver by an amount equal to $75 million.

    Ascent Liquidity and Capital Resources

    At June 30, 2013, on a consolidated basis, Ascent had $84.1 million of cash and cash equivalents, $2.6 million of restricted cash, and $141.4 million of marketable securities on a consolidated basis.  The Company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund potential strategic acquisitions or investment opportunities, including the Security Networks Acquisition.

    During the six months ended June 30, 2013, Monitronics used cash of $113.2 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At June 30, 2013, the existing long-term debt of Monitronics includes the principal balance of $1.1 billion under its Senior Notes, Credit Facility, and Credit Facility revolver. The Senior Notes have an outstanding principal balance of $410.0 million as of June 30, 2013 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $687.0 million as of June 30, 2013 and requires principal payments of approximately $1.7 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $33.6 million as of June 30, 2013 and becomes due on December 22, 2017.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the pending acquisition of Security Networks, the integration of acquired assets and businesses (including the consolidated performance of Monitronics after giving effect to the pending acquisition), the terms of the anticipated amendments to Monitronics’ Credit Facility (including the size of its revolver capacity), future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, Monitronics’ ability to complete the acquisition of Security Networks (including the completion of the acquisition financing), continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.



    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net income for the three months and six ended June 30, 2013 totaled $65,000 and $2.8 million, respectively. Monitronics’ net income for the corresponding periods totaled $592,000 and $1.9 million, respectively.  

    Ascent Capital Group Announces Financial Results for the Three and Six Months Ended June 30, 2013

    by Moni Blogger | Aug 14, 2013

    Englewood, CO – August 8, 2013 – 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.

    Highlights[1]:

    • 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.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “Monitronics continued to deliver strong growth in the second quarter. Both revenue and Adjusted EBITDA increased a solid 23% and total subscriber accounts were up 17.8%, on strong growth in account acquisitions through our dealer program combined with 18,200 in bulk account purchases.”

    Mr. Haislip continued, “Our recently announced proposed acquisition of Security Networks will bring our total subscriber base to over 1 million accounts, and position the company very well for continued growth.  Because of its superior operating performance, strong growth profile and impressive and growing dealer affiliate network, we are confident Security Networks will be a strong complement to Monitronics’ existing operations. More importantly, the combination of two very successful home security industry leaders positions us for accelerated growth and ongoing strong profitability.”

    Three and Six Months Ended June 30, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended June 30, 2013, Ascent reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to increases in Monitronics’ subscriber accounts and average monthly revenue per subscriber.

    Ascent’s total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increase for the three and six months ended June 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.  

    Selling, general & administrative (“SG&A”) costs increased 19.3% to $21.5 million for the three months ended June 30, 2013 and increased 15.1% to $41.2 million for the first six months of 2013. The increase is primarily attributable to increases in Monitronics SG&A costs due to increased payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs. Additionally, Ascent’s consolidated stock-based compensation expense increased approximately $692,000 and $1.2 million for the three and six months ended June 30, 2013, related to restricted stock and option awards granted to certain employees.

    Ascent’s Adjusted EBITDA increased 25.9% to $71.2 million during the quarter and 26.5% to $142.5 million for the six months ended June 30, 2013. The increase in Adjusted EBITDA for the three and six months ended June 30, 2013 was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs.

    Ascent reported net income from continuing operations for the three and six months ended June 30, 2013 of $212,000 and $2.5 million, respectively, compared to a net loss from continuing operations of $5.7 million and $10.7 million for the three and six months ended June 30, 2012.

    Monitronics International

    For the three months ended June 30, 2013, Monitronics reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to a 17.8% increase in the number of subscriber accounts, a 24.0% increase in recurring monthly revenue to $33.5 million and a 5.3% increase in average monthly revenue per subscriber to $39.98 as of June 30, 2013.

    Monitronics’ total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increases are primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.

    Monitronics’ SG&A costs increased 23.6% to $18.1 million for the three months ended June 30, 2013 and increased 17.3% to $34.0 million for the first six months of 2013. The increases are attributable to higher payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs incurred in the three and six months ended June 30, 2013.

    Monitronics’ Adjusted EBITDA for the three months ended June 30, 2013 was $70.4 million, an increase of 23.1% over the three months ended June 30, 2012. For the six months ended June 30, 2013, Monitronics’ Adjusted EBITDA increased 23.0% to $139.8 million. The increase in Adjusted EBITDA is primarily due to revenue and subscriber growth. Monitronics’ Adjusted EBITDA as a percentage of revenue was 68.8% in the second quarter of 2013, compared to 68.7% for the three months ended June 30, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the six months ended June 30, 2013 totaled 69.1%, compared to 68.8% for the prior year period.

    Monitronics reported net income for the three months ended June 30, 2013 of $592,000 compared to a net loss of $3.8 million in the prior year period. Net income for the six months ended June 30, 2013 was $1.9 million compared to a net loss of $7.5 million in the prior year period.

    The table below summarizes subscriber data for the twelve months ended June 30, 2013:

    For the three months ended June 30, 2013, Monitronics purchased 47,733 subscriber accounts, compared to the 26,358 subscriber accounts in the three months ended June 30, 2012. During the six months ended June 30, 2013 and 2012, Monitronics purchased 76,193 and 50,532 subscriber accounts, respectively. The account purchases for the three and six months ended June 30, 2013 include bulk buy purchases of approximately 18,200 accounts.

    Monitronics’ trailing twelve month attrition for the period ended June 30, 2013 increased to 12.5% compared to 11.7% for the twelve months ended June 30, 2012.

    Security Networks Transaction

    On July 10, 2013 Monitronics signed a definitive agreement to acquire Security Networks, LLC. The transaction consideration will consist of $487.5 million of cash and 253,333 newly issued shares of Ascent Series A common stock with an agreed value of $20 million. The purchase price is subject to adjustment at closing and is based upon Security Networks delivering recurring monthly revenue (as defined in the acquisition agreement, “Acquisition RMR”) of $8.8 million. The transaction will be financed primarily with new debt at the Ascent and Monitronics levels, as well as an incremental amount of cash from Ascent's balance sheet. The transaction is expected to close in mid-August 2013, subject to customary closing conditions, including regulatory approvals.

    The cash portion of the Security Networks Purchase Price will be funded by cash on hand at Ascent Capital and new debt, which is to consist of the $103.5 million of Convertible Notes issued by Ascent Capital, the $175.0 million New Senior Notes issued by Monitronics and the expected Incremental Term Loan of $225 million to be provided under Monitronics’ Credit Facility.  The Convertible Notes offering was completed on July 17, 2013 with the notes maturing on July 15, 2020 and bearing interest at 4.00% per annum from July 17, 2013.  Interest will be payable semi-annually on January 15 and July 15 of each year. 

    The New Senior Notes offering was completed on July 17, 2013 by Monitronics Escrow Corporation (the “Escrow Issuer”), a wholly-owned subsidiary of Ascent Capital, and the proceeds from this offering have been placed in escrow.  In connection with the completion of the Security Networks Acquisition, the Escrow Issuer will be merged into Monitronics and Monitronics will assume the New Senior Notes.  The New Senior Notes will mature on April 1, 2020 and bear interest at 9.125% per annum, with interest being payable semi-annually on April 1 and October 1 of each year. 

    Monitronics expects that the Incremental Term Loan will be entered into upon the closing of the Security Networks Acquisition.  Monitronics expects that the Incremental Term Loan will mature on March 23, 2018 and will bear interest based on LIBOR plus an applicable margin to be agreed, subject to a LIBOR floor to be agreed.  In addition, Monitronics has evaluated its borrowing capacity subsequent to the Security Networks Acquisition, upon which it expects to increase the borrowing available under Monitronics’ Credit Facility revolver by an amount equal to $75 million.

    Ascent Liquidity and Capital Resources

    At June 30, 2013, on a consolidated basis, Ascent had $84.1 million of cash and cash equivalents, $2.6 million of restricted cash, and $141.4 million of marketable securities on a consolidated basis.  The Company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund potential strategic acquisitions or investment opportunities, including the Security Networks Acquisition.

    During the six months ended June 30, 2013, Monitronics used cash of $113.2 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At June 30, 2013, the existing long-term debt of Monitronics includes the principal balance of $1.1 billion under its Senior Notes, Credit Facility, and Credit Facility revolver. The Senior Notes have an outstanding principal balance of $410.0 million as of June 30, 2013 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $687.0 million as of June 30, 2013 and requires principal payments of approximately $1.7 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $33.6 million as of June 30, 2013 and becomes due on December 22, 2017.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the pending acquisition of Security Networks, the integration of acquired assets and businesses (including the consolidated performance of Monitronics after giving effect to the pending acquisition), the terms of the anticipated amendments to Monitronics’ Credit Facility (including the size of its revolver capacity), future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, Monitronics’ ability to complete the acquisition of Security Networks (including the completion of the acquisition financing), continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.



    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net income for the three months and six ended June 30, 2013 totaled $65,000 and $2.8 million, respectively. Monitronics’ net income for the corresponding periods totaled $592,000 and $1.9 million, respectively.  

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