Investor Relations

Ascent Capital Group Announces Financial Results for the Three and Twelve Months Ended December 31, 2012

by Moni Blogger | Feb 26, 2013

Englewood, CO – February 26, 2013 - Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and twelve months ended December 31, 2012. Ascent is a holding company that owns 
Monitronics International, Inc. (“Monitronics”), one of the nation’s largest and fastest-growing home security alarm monitoring companies. 

Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 810,000 residential and commercial customers as of December 31, 2012. 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, 2012 increased 17.5% and 10.6%, respectively, driven by increases in Monitronics’ subscriber accounts and average recurring monthly revenue  (“RMR”) per subscriber 
  • Ascent’s Adjusted EBITDA2 for the three and twelve months ended December 31, 2012 increased 41.3% and 18.3% driven by strong revenue growth at Monitronics 
  • Ascent’s balance sheet remains strong with $217.6 million of cash and marketable securities at the holding company level as of December 31, 2012 
  • Monitronics’ Adjusted EBITDA for the three and twelve months ended December 31, 2012 increased 22.7% and 10.2%, respectively, driven by growth in subscriber accounts and average RMR 
  • Monitronics subscriber accounts as of December 31, 2012 increased 16.0% to 812,539 
  • Monitronics average RMR per subscriber increased 5.4% as of December 31, 2012 to $39.50 
Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “I am extremely pleased with our performance in the fourth quarter and full year. The business delivered strong growth in net revenue and Adjusted EBITDA and we successfully completed a large bulk purchase of accounts in the fourth quarter that provides us with strong incremental cash flow and positioned the business well as we moved into the new year.” 

Monitronics Mike Haislip, President and Chief Executive Officer of Monitronics said, “2012 was a strong year for our business. Growth in both full year revenue and Adjusted EBITDA topped 10 percent and we saw a 16 percent year over year increase in total subscriber account growth driven in part by the successful purchase of 93,000 high quality subscriber accounts from Pinnacle Security. The acquired accounts feature 75 percent penetration of interactive services, which provides for a higher value customer and also drives increased RMR.” 

Mr. Haislip continued, “As expected, attrition levels increased modestly in the quarter given the age of accounts in our portfolio and an increase in disconnects due to relocations driven by improvements in the housing market. In the near term, we expect to see modest increases in overall attrition levels as these trends continue. Our suite of advanced services also continues to be an attractive offering to consumers. Excluding accounts acquired in the Q4 bulk purchase from Pinnacle, over 37 percent of new customers in 2012 signed up for home automation or interactive services and we expect that percentage to continue to grow in 2013. While incremental telecom and field service costs associated with these services continue to place downward pressure on Adjusted EBITDA margins, the positive impact on net cash flow from these customers continues to drive strong revenues and RMR across the entire business.”

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 (loss) from continuing 
operations for the three and twelve months ended December 31, 2012 totaled $0.1 million and $(24.3) million, respectively. Monitronics’ net loss 
for the corresponding periods totaled $3.4 million and $16.0 million, respectively.

Like this Blog? Share it....