Englewood, CO – November 2, 2017 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three months ended September 30, 2017. 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 approximately one million residential and commercial customers as of September 30, 2017. MONI’s long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.
- MONI announces important new partnership with Nest to provide professional monitoring to Nest Secure customers
- MONI implements headcount reductions delivering $7 million of annualized cost savings
- Realized first sequential improvement in Core Unit Attrition since 2015
Key Financial Results1:
- Ascent’s net revenue for the three and nine months ended September 30, 2017 totaled $138.2 million and $419.9 million, respectively
- Ascent’s net loss for the three and nine months ended September 30, 2017 totaled $29.2 million and $91.5 million, respectively
- Ascent's Pre-SAC Adjusted EBITDA, which adjusts for the expensed portion of subscriber acquisition costs, for the three and nine months ended September 30, 2017 totaled $85.9 million and $259.5 million, respectively
- MONI’s net loss for the three and nine months ended September 30, 2017 totaled $25.5 million and $96.7 million, respectively
- MONI’s Pre-SAC Adjusted EBITDA for the three and nine months ended September 30, 2017 totaled $87.1 million and $265.9 million, respectively
Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “The MONI team continued to make meaningful progress in the third quarter toward its strategic agenda of diversifying its distribution channels, developing key partner relationships, and improving certain of the core performance metrics of the business. While there is certainly more work ahead of us, I believe we are focusing on the right initiatives to benefit the long term prospects of the business and drive improved shareholder value.”
Jeffery Gardner, President and Chief Executive Officer of MONI said, “I am encouraged by our continued execution in the third quarter. We are making positive strides stabilizing dealer economics and attrition metrics as well as reducing operating costs and generating new sales and marketing leads for our direct channel. Notably, our recently announced partnership with Nest is set to be a transformative opportunity for the business. We believe it will provide a unique opportunity to expand our addressable market beyond traditional homeowners, drive greater penetration into the growing connected home market and elevate MONI’s brand awareness nationally. We are also making strategic improvements to our operating cost structure through headcount reductions principally in Dallas as well as reorganizing our sales and marketing platforms to consolidate both MONI Direct and LiveWatch under a single sales platform. All of this is being done with an eye towards continuing to provide our customers with the highest levels of customer service while driving greater efficiencies across all areas of the business.”
1 Comparisons are year-over-year unless otherwise specified.