Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.8.0.1
Consolidating Guarantor Financial Information (Tables)
3 Months Ended
Mar. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of March 31, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
27,547

 
354

 

 

 
27,901

Restricted cash
93

 

 

 

 
93

Trade receivables, net
11,759

 
541

 

 

 
12,300

Prepaid and other current assets
92,568

 
2,739

 

 
(72,114
)
 
23,193

Total current assets
131,967

 
3,634

 

 
(72,114
)
 
63,487

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
(2,271
)
 

 

 
2,271

 

Property and equipment, net
31,905

 
2,138

 

 

 
34,043

Subscriber accounts and deferred contract acquisition costs, net
1,189,174

 
35,763

 

 

 
1,224,937

Dealer network and other intangible assets, net
3,638

 
303

 

 

 
3,941

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
27,597

 
30

 

 

 
27,627

Total assets
$
1,909,201

 
78,226

 

 
(69,843
)
 
1,917,584

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
10,298

 
2,560

 

 

 
12,858

Accrued payroll and related liabilities
4,744

 
812

 

 

 
5,556

Other accrued liabilities
61,035

 
72,807

 

 
(72,114
)
 
61,728

Deferred revenue
11,878

 
1,599

 

 

 
13,477

Holdback liability
7,417

 
184

 

 

 
7,601

Current portion of long-term debt
11,000

 

 

 

 
11,000

Total current liabilities
106,372

 
77,962

 

 
(72,114
)
 
112,220

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,711,336

 

 

 

 
1,711,336

Long-term holdback liability
2,191

 

 

 

 
2,191

Derivative financial instruments
6,553

 

 

 

 
6,553

Deferred income tax liability, net
12,207

 
1,759

 

 

 
13,966

Other liabilities
2,322

 
776

 

 

 
3,098

Total liabilities
1,840,981

 
80,497

 

 
(72,114
)
 
1,849,364

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
68,220

 
(2,271
)
 

 
2,271

 
68,220

Total liabilities and stockholder's equity
$
1,909,201

 
78,226

 

 
(69,843
)
 
1,917,584


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of December 31, 2017
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,705

 
597

 

 

 
3,302

Trade receivables, net
12,082

 
563

 

 

 
12,645

Prepaid and other current assets
74,613

 
2,396

 

 
(66,341
)
 
10,668

Total current assets
89,400

 
3,556

 

 
(66,341
)
 
26,615

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
4,554

 

 

 
(4,554
)
 

Property and equipment, net
30,727

 
2,062

 

 

 
32,789

Subscriber accounts and deferred contract acquisition costs, net
1,265,519

 
36,509

 

 

 
1,302,028

Dealer network and other intangible assets, net
6,063

 
931

 

 

 
6,994

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
9,311

 
29

 

 

 
9,340

Total assets
$
1,932,765

 
79,445

 

 
(70,895
)
 
1,941,315

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
9,705

 
1,368

 

 

 
11,073

Accrued payroll and related liabilities
2,648

 
810

 

 

 
3,458

Other accrued liabilities
47,800

 
68,567

 

 
(66,341
)
 
50,026

Deferred revenue
12,332

 
1,539

 

 

 
13,871

Holdback liability
9,035

 
274

 

 

 
9,309

Current portion of long-term debt
11,000

 

 

 

 
11,000

Total current liabilities
92,520

 
72,558

 

 
(66,341
)
 
98,737

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,707,297

 

 

 

 
1,707,297

Long-term holdback liability
2,658

 

 

 

 
2,658

Derivative financial instruments
13,491

 

 

 

 
13,491

Deferred income tax liability, net
11,684

 
1,620

 

 

 
13,304

Other liabilities
2,379

 
713

 

 

 
3,092

Total liabilities
1,830,029

 
74,891

 

 
(66,341
)
 
1,838,579

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
102,736

 
4,554

 

 
(4,554
)
 
102,736

Total liabilities and stockholder's equity
$
1,932,765

 
79,445

 

 
(70,895
)
 
1,941,315

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended March 31, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
124,295

 
9,458

 

 

 
133,753

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 
Cost of services
28,299

 
4,402

 

 

 
32,701

Selling, general, and administrative, including stock-based compensation
22,803

 
9,211

 

 

 
32,014

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
52,237

 
2,174

 

 

 
54,411

Depreciation
2,385

 
230

 

 

 
2,615

 
105,724

 
16,017

 

 

 
121,741

Operating income (loss)
18,571

 
(6,559
)
 

 

 
12,012

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
6,740

 

 

 
(6,740
)
 

Interest expense
36,873

 

 

 

 
36,873

 
43,613

 

 

 
(6,740
)
 
36,873

Loss before income taxes
(25,042
)
 
(6,559
)
 

 
6,740

 
(24,861
)
Income tax expense
1,165

 
181

 

 

 
1,346

Net loss
(26,207
)
 
(6,740
)
 

 
6,740

 
(26,207
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
14,406

 

 

 

 
14,406

Total other comprehensive income
14,406

 

 

 

 
14,406

Comprehensive loss
$
(11,801
)
 
(6,740
)
 

 
6,740

 
(11,801
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended March 31, 2017
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
133,118

 
8,082

 

 

 
141,200

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of services
26,307

 
3,662

 

 

 
29,969

Selling, general, and administrative, including stock-based compensation
24,717

 
8,006

 

 

 
32,723

Radio conversion costs
187

 
45

 

 

 
232

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
57,903

 
1,644

 

 

 
59,547

Depreciation
1,976

 
144

 

 

 
2,120

 
111,090

 
13,501

 

 

 
124,591

Operating income (loss)
22,028

 
(5,419
)
 

 

 
16,609

Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
5,682

 

 

 
(5,682
)
 

Interest expense
35,833

 
5

 

 

 
35,838

 
41,515

 
5

 

 
(5,682
)
 
35,838

Loss before income taxes
(19,487
)
 
(5,424
)
 

 
5,682

 
(19,229
)
Income tax expense
1,526

 
258

 

 

 
1,784

Net loss
(21,013
)
 
(5,682
)
 

 
5,682

 
(21,013
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Unrealized gain on derivative contracts
1,049

 

 

 

 
1,049

Total other comprehensive income
1,049

 

 

 

 
1,049

Comprehensive loss
$
(19,964
)
 
(5,682
)
 

 
5,682

 
(19,964
)
Condensed Consolidating Statement of Cash Flows
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Three Months Ended March 31, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
50,059

 
295

 

 

 
50,354

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(3,004
)
 
(306
)
 

 

 
(3,310
)
Cost of subscriber accounts acquired
(24,328
)
 
(232
)
 

 

 
(24,560
)
Increase in restricted cash
(93
)
 

 

 

 
(93
)
Net cash used in investing activities
(27,425
)
 
(538
)
 

 

 
(27,963
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
50,000

 

 

 

 
50,000

Payments on long-term debt
(47,750
)
 

 

 

 
(47,750
)
Value of shares withheld for share-based compensation
(42
)
 

 

 

 
(42
)
Net cash provided by financing activities
2,208

 

 

 

 
2,208

Net increase (decrease) in cash and cash equivalents
24,842

 
(243
)
 

 

 
24,599

Cash and cash equivalents at beginning of period
2,705

 
597

 

 

 
3,302

Cash and cash equivalents at end of period
$
27,547

 
354

 

 

 
27,901


 
Three Months Ended March 31, 2017
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
51,338

 
862

 

 

 
52,200

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(1,347
)
 
(347
)
 

 

 
(1,694
)
Cost of subscriber accounts acquired
(46,003
)
 
(705
)
 

 

 
(46,708
)
Net cash used in investing activities
(47,350
)
 
(1,052
)
 

 

 
(48,402
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
64,750

 

 

 

 
64,750

Payments on long-term debt
(42,600
)
 

 

 

 
(42,600
)
Value of shares withheld for share-based compensation
(136
)
 

 

 

 
(136
)
Net cash provided by financing activities
22,014

 

 

 

 
22,014

Net increase (decrease) in cash and cash equivalents
26,002

 
(190
)
 

 

 
25,812

Cash and cash equivalents at beginning of period
1,739

 
1,438

 

 

 
3,177

Cash and cash equivalents at end of period
$
27,741

 
1,248

 

 

 
28,989