Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.10.0.1
Consolidating Guarantor Financial Information (Tables)
6 Months Ended
Jun. 30, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of June 30, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,282

 
821

 

 

 
2,103

Restricted cash
104

 

 

 

 
104

Trade receivables, net
11,817

 
639

 

 

 
12,456

Prepaid and other current assets
97,842

 
3,059

 

 
(77,942
)
 
22,959

Total current assets
111,045

 
4,519

 

 
(77,942
)
 
37,622

 
 
 
 
 
 
 
 
 
 
Property and equipment, net
34,513

 
2,069

 

 

 
36,582

Subscriber accounts and deferred contract acquisition costs, net
1,186,868

 
35,617

 

 

 
1,222,485

Dealer network and other intangible assets, net
1,213

 

 

 

 
1,213

Goodwill
313,102

 
36,047

 

 

 
349,149

Other assets, net
30,795

 
904

 

 

 
31,699

Total assets
$
1,677,536

 
79,156

 

 
(77,942
)
 
1,678,750

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's (Deficit) Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
11,068

 
1,662

 

 

 
12,730

Accrued payroll and related liabilities
4,251

 
683

 

 

 
4,934

Other accrued liabilities
47,641

 
82,212

 

 
(77,942
)
 
51,911

Deferred revenue
11,284

 
1,681

 

 

 
12,965

Holdback liability
9,579

 
161

 

 

 
9,740

Current portion of long-term debt
11,000

 

 

 

 
11,000

Total current liabilities
94,823

 
86,399

 

 
(77,942
)
 
103,280

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,720,235

 

 

 

 
1,720,235

Long-term holdback liability
2,031

 

 

 

 
2,031

Derivative financial instruments
3,313

 

 

 

 
3,313

Deferred income tax liability, net
12,731

 
1,897

 

 

 
14,628

Other liabilities
12,098

 

 

 
(9,140
)
 
2,958

Total liabilities
1,845,231

 
88,296

 

 
(87,082
)
 
1,846,445

 
 
 
 
 
 
 
 
 
 
Total stockholder's (deficit) equity
(167,695
)
 
(9,140
)
 

 
9,140

 
(167,695
)
Total liabilities and stockholder's (deficit) equity
$
1,677,536

 
79,156

 

 
(77,942
)
 
1,678,750


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 June 30, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
124,126

 
10,887

 

 

 
135,013

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 
Cost of services
27,865

 
5,182

 

 

 
33,047

Selling, general, and administrative, including stock-based compensation
22,616

 
10,039

 

 

 
32,655

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
52,091

 
1,800

 

 

 
53,891

Depreciation
2,622

 
243

 

 

 
2,865

Loss on goodwill impairment
214,089

 
311

 

 

 
214,400

 
319,283

 
17,575

 

 

 
336,858

Operating loss
(195,157
)
 
(6,688
)
 

 

 
(201,845
)
Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
6,870

 

 

 
(6,870
)
 

Interest expense
38,600

 

 

 

 
38,600

 
45,470

 

 

 
(6,870
)
 
38,600

Loss before income taxes
(240,627
)
 
(6,688
)
 

 
6,870

 
(240,445
)
Income tax expense
1,165

 
182

 

 

 
1,347

Net loss
(241,792
)
 
(6,870
)
 

 
6,870

 
(241,792
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
5,521

 

 

 

 
5,521

Total other comprehensive income
5,521

 

 

 

 
5,521

Comprehensive loss
$
(236,271
)
 
(6,870
)
 

 
6,870

 
(236,271
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)

 
Three Months Ended June 30, 2017
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
132,223

 
8,275

 

 

 
140,498

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 
Cost of services
25,956

 
3,661

 

 

 
29,617

Selling, general, and administrative, including stock-based compensation
53,453

 
7,109

 

 

 
60,562

Radio conversion costs
72

 
5

 

 

 
77

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
58,373

 
1,592

 

 

 
59,965

Depreciation
1,960

 
165

 

 

 
2,125

 
139,814

 
12,532

 

 

 
152,346

Operating loss
(7,591
)
 
(4,257
)
 

 

 
(11,848
)
Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
4,515

 

 

 
(4,515
)
 

Interest expense
36,477

 

 

 

 
36,477

 
40,992

 

 

 
(4,515
)
 
36,477

Loss before income taxes
(48,583
)
 
(4,257
)
 

 
4,515

 
(48,325
)
Income tax expense
1,521

 
258

 

 

 
1,779

Net loss
(50,104
)
 
(4,515
)
 

 
4,515

 
(50,104
)
Other comprehensive loss:
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(5,777
)
 

 

 

 
(5,777
)
Total other comprehensive loss
(5,777
)
 

 

 

 
(5,777
)
Comprehensive loss
$
(55,881
)
 
(4,515
)
 

 
4,515

 
(55,881
)

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)

 
Six Months Ended June 30, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
248,421

 
20,345

 

 

 
268,766

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 
Cost of services
56,164

 
9,584

 

 

 
65,748

Selling, general, and administrative, including stock-based compensation
45,419

 
19,250

 

 

 
64,669

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
104,328

 
3,974

 

 

 
108,302

Depreciation
5,007

 
473

 

 

 
5,480

Loss on goodwill impairment
214,089

 
311

 

 

 
214,400

 
425,007

 
33,592

 

 

 
458,599

Operating loss
(176,586
)
 
(13,247
)
 

 

 
(189,833
)
Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
13,610

 

 

 
(13,610
)
 

Interest expense
75,473

 

 

 

 
75,473

 
89,083

 

 

 
(13,610
)
 
75,473

Loss before income taxes
(265,669
)
 
(13,247
)
 

 
13,610

 
(265,306
)
Income tax expense
2,330

 
363

 

 

 
2,693

Net loss
(267,999
)
 
(13,610
)
 

 
13,610

 
(267,999
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
19,927

 

 

 

 
19,927

Total other comprehensive income
19,927

 

 

 

 
19,927

Comprehensive loss
$
(248,072
)
 
(13,610
)
 

 
13,610

 
(248,072
)

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)

 
Six Months Ended June 30, 2017
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
265,341

 
16,357

 

 

 
281,698

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of services
52,263

 
7,323

 

 

 
59,586

Selling, general, and administrative, including stock-based compensation
78,170

 
15,115

 

 

 
93,285

Radio conversion costs
259

 
50

 

 

 
309

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
116,276

 
3,236

 

 

 
119,512

Depreciation
3,936

 
309

 

 

 
4,245

 
250,904

 
26,033

 

 

 
276,937

Operating income (loss)
14,437

 
(9,676
)
 

 

 
4,761

Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
10,197

 

 

 
(10,197
)
 

Interest expense
72,310

 
5

 

 

 
72,315

 
82,507

 
5

 

 
(10,197
)
 
72,315

Loss before income taxes
(68,070
)
 
(9,681
)
 

 
10,197

 
(67,554
)
Income tax expense
3,047

 
516

 

 

 
3,563

Net loss
(71,117
)
 
(10,197
)
 

 
10,197

 
(71,117
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
(4,728
)
 

 

 

 
(4,728
)
Total other comprehensive loss
(4,728
)
 

 

 

 
(4,728
)
Comprehensive loss
$
(75,845
)
 
(10,197
)
 

 
10,197

 
(75,845
)
Condensed Consolidating Statement of Cash Flows
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Six Months Ended June 30, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
66,082

 
1,415

 

 

 
67,497

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(8,449
)
 
(479
)
 

 

 
(8,928
)
Cost of subscriber accounts acquired
(68,983
)
 
(712
)
 

 

 
(69,695
)
Net cash used in investing activities
(77,432
)
 
(1,191
)
 

 

 
(78,623
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
105,300

 

 

 

 
105,300

Payments on long-term debt
(95,200
)
 

 

 

 
(95,200
)
Value of shares withheld for share-based compensation
(69
)
 

 

 

 
(69
)
Net cash provided by financing activities
10,031

 

 

 

 
10,031

Net increase (decrease) in cash, cash equivalents and restricted cash
(1,319
)
 
224

 

 

 
(1,095
)
Cash, cash equivalents and restricted cash at beginning of period
2,705

 
597

 

 

 
3,302

Cash, cash equivalents and restricted cash at end of period
$
1,386

 
821

 

 

 
2,207


 
Six Months Ended June 30, 2017
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
78,832

 
1,851

 

 

 
80,683

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(5,110
)
 
(642
)
 

 

 
(5,752
)
Cost of subscriber accounts acquired
(86,831
)
 
(1,456
)
 

 

 
(88,287
)
Net cash used in investing activities
(91,941
)
 
(2,098
)
 

 

 
(94,039
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
95,550

 

 

 

 
95,550

Payments on long-term debt
(82,350
)
 

 

 

 
(82,350
)
Value of shares withheld for share-based compensation
(194
)
 

 

 

 
(194
)
Net cash provided by financing activities
13,006

 

 

 

 
13,006

Net decrease in cash, cash equivalents and restricted cash
(103
)
 
(247
)
 

 

 
(350
)
Cash, cash equivalents and restricted cash at beginning of period
1,739

 
1,438

 

 

 
3,177

Cash, cash equivalents and restricted cash at end of period
$
1,636

 
1,191

 

 

 
2,827