Quarterly report pursuant to Section 13 or 15(d)

Reportable Business Segments

v3.8.0.1
Reportable Business Segments
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Reportable Business Segments
Reportable Business Segments

Description of Segments

The Company operates through two reportable business segments according to the nature and economic characteristics of its services as well as the manner in which the information issued internally by the Company's key decision maker, who is the Company's Chief Executive Officer. The Company's business segments are as follows:

MONI

The MONI segment is engaged in the business of providing security alarm monitoring services: monitoring signals arising from burglaries, fires, medical alerts and other events through security systems at subscribers' premises, as well as providing customer service and technical support. MONI primarily outsources the sales, installation and most of its field service functions to its dealers.

LiveWatch

LiveWatch is a Do-It-Yourself home security provider offering professionally monitored security services through a direct-to-consumer sales channel. LiveWatch offers a differentiated go-to-market strategy through direct response TV, internet and radio advertising. When a customer initiates the process to obtain monitoring services, LiveWatch pre-configures the alarm monitoring system based on customer specifications. LiveWatch then packages and ships the equipment directly to the customer. The customer self-installs the equipment on-site and activates the monitoring service over the phone.

As they arise, transactions between segments are recorded on an arm's length basis using relevant market prices. The following table sets forth selected data from the accompanying condensed consolidated statements of operations for the periods indicated (amounts in thousands):
 
 
MONI
 
LiveWatch
 
Consolidated
 
 
Three Months Ended March 31, 2018
Net revenue
 
$
125,773

 
$
7,980

 
$
133,753

Depreciation and amortization
 
$
55,236

 
$
1,790

 
$
57,026

Loss before income taxes
 
$
(17,629
)
 
$
(7,232
)
 
$
(24,861
)
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2017
Net revenue
 
$
134,408

 
$
6,792

 
$
141,200

Depreciation and amortization
 
$
60,508

 
$
1,159

 
$
61,667

Loss before income taxes
 
$
(13,299
)
 
$
(5,930
)
 
$
(19,229
)


The following table sets forth selected data from the accompanying condensed consolidated balance sheets for the periods indicated (amounts in thousands):
 
 
MONI
 
LiveWatch
 
Eliminations
 
Consolidated
 
 
Balance at March 31, 2018
Subscriber accounts and deferred contract acquisition costs, net of amortization
 
$
1,203,996

 
$
20,941

 
$

 
$
1,224,937

Goodwill
 
$
527,502

 
$
36,047

 
$

 
$
563,549

Total assets
 
$
1,980,081

 
$
62,453

 
$
(124,950
)
 
$
1,917,584

 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
Subscriber accounts and deferred contract acquisition costs, net of amortization
 
$
1,280,813

 
$
21,215

 
$

 
$
1,302,028

Goodwill
 
$
527,502

 
$
36,047

 
$

 
$
563,549

Total assets
 
$
1,996,240

 
$
63,233

 
$
(118,158
)
 
$
1,941,315