Annual report pursuant to Section 13 and 15(d)

Consolidating Guarantor Financial Information

v2.4.0.8
Consolidating Guarantor Financial Information
12 Months Ended
Dec. 31, 2013
Consolidating Guarantor Financial Information  
Consolidating Guarantor Financial Information

(19) Consolidating Guarantor Financial Information

 

The Senior Notes were issued and the Credit Facility was entered into by Monitronics (the “Parent Issuer”) and both are guaranteed by all of the Company’s existing U.S. subsidiaries (“Subsidiary Guarantors”).  Ascent Capital has not guaranteed any of the Company’s obligations under the Senior Notes or Credit Facility.

 

Consolidating guarantor financial information has not been presented for the years ended December 31, 2012 and 2011, as substantially all of the Company’s operations were conducted by the Parent Issuer entity. The Company believes that disclosing such information would not provide investors with any additional information that would be material in evaluating the sufficiency of the guarantees.

 

The condensed consolidating financial information for the Parent Issuer, the Subsidiary Guarantors and the non-guarantors as of and for the year ended December 31, 2013, are as follows:

 

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES

Condensed Consolidating Balance Sheets

 

 

 

As of December 31, 2013

 

 

 

Parent Issuer

 

Subsidiary
Guarantors

 

Non-Guarantors

 

Eliminations

 

Consolidated

 

 

 

(amounts in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,775

 

2,580

 

 

 

4,355

 

Restricted cash

 

40

 

 

 

 

40

 

Trade receivables, net

 

11,374

 

1,645

 

 

 

13,019

 

Deferred income tax assets, net

 

6,763

 

1,767

 

 

 

8,530

 

Prepaid and other current assets

 

9,916

 

1,003

 

 

(4,600

)

6,319

 

Total current assets

 

29,868

 

6,995

 

 

(4,600

)

32,263

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in subsidiaries

 

498,820

 

 

 

(498,820

)

 

Property and equipment, net

 

23,572

 

989

 

 

 

24,561

 

Subscriber accounts, net

 

1,025,605

 

315,349

 

 

 

1,340,954

 

Dealer network and other intangible assets, net

 

19,773

 

44,862

 

 

 

64,635

 

Goodwill

 

350,213

 

176,300

 

 

 

526,513

 

Other assets, net

 

29,611

 

 

 

 

29,611

 

Total assets

 

$

1,977,462

 

544,495

 

 

(503,420

)

2,018,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholder’s Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,491

 

1,404

 

 

 

6,895

 

Accrued payroll and related liabilities

 

2,649

 

530

 

 

 

3,179

 

Other accrued liabilities

 

27,137

 

10,917

 

 

(4,600

)

33,454

 

Deferred revenue

 

11,037

 

3,342

 

 

 

14,379

 

Holdback liability

 

16,640

 

3,118

 

 

 

19,758

 

Current portion of long-term debt

 

9,166

 

 

 

 

9,166

 

Total current liabilities

 

72,120

 

19,311

 

 

(4,600

)

86,831

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

1,597,627

 

 

 

 

1,597,627

 

Long-term holdback liability

 

 

6,698

 

 

 

6,698

 

Derivative financial instruments

 

2,013

 

 

 

 

2,013

 

Deferred income tax liability, net

 

10,577

 

7,002

 

 

 

17,579

 

Other liabilities

 

3,401

 

12,664

 

 

 

16,065

 

Total liabilities

 

1,685,738

 

45,675

 

 

(4,600

)

1,726,813

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholder’s equity

 

291,724

 

498,820

 

 

(498,820

)

291,724

 

Total liabilities and stockholder’s equity

 

$

1,977,462

 

544,495

 

 

(503,420

)

2,018,537

 

 

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

 

 

 

Year ended December, 2013

 

 

 

Parent Issuer

 

Subsidiary
Guarantors

 

Non-Guarantors

 

Eliminations

 

Consolidated

 

 

 

(amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

411,036

 

39,997

 

 

 

451,033

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

65,903

 

8,233

 

 

 

74,136

 

Selling, general, and administrative, including stock-based and long-term incentive compensation

 

70,706

 

6,456

 

 

 

77,162

 

Amortization of subscriber accounts, dealer network and other intangible assets

 

185,161

 

23,599

 

 

 

208,760

 

Depreciation

 

6,655

 

672

 

 

 

7,327

 

Restructuring charges

 

 

1,111

 

 

 

 

1,111

 

Gain on sale of operating assets

 

(2

)

 

 

 

(2

)

 

 

328,423

 

40,071

 

 

 

368,494

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

82,613

 

(74

)

 

 

82,539

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

Equity in loss of subsidiaries

 

1,736

 

 

 

(1,736

)

 

Interest expense

 

95,680

 

465

 

 

 

96,145

 

 

 

97,416

 

465

 

 

(1,736

)

96,145

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

(14,803

)

(539

)

 

1,736

 

(13,606

)

Income tax expense

 

2,820

 

1,197

 

 

 

4,017

 

Net loss

 

(17,623

)

(1,736

)

 

1,736

 

(17,623

)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on derivative contracts

 

12,317

 

 

 

 

12,317

 

Total other comprehensive income

 

12,317

 

 

 

 

12,317

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

$

(5,306

)

(1,736

)

 

1,736

 

(5,306

)

 

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Cash Flows

 

 

 

Year ended , 2013

 

 

 

Parent Issuer

 

Subsidiary
Guarantors

 

Non-
Guarantors

 

Eliminations

 

Consolidated

 

 

 

(amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

187,594

 

27,055

 

 

 

214,649

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(9,667

)

(258

)

 

 

(9,925

)

Purchases of subscriber accounts

 

(207,601

)

(27,313

)

 

 

(234,914

)

Cash acquired (paid) on acquisition

 

(481,834

)

3,096

 

 

 

(478,738

)

Decrease in restricted cash

 

2,600

 

 

 

 

2,600

 

Other, net

 

(98

)

 

 

 

(98

)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(696,600

)

(24,475

)

 

 

(721,075

)

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from long-term debt

 

630,575

 

 

 

 

630,575

 

Payments of long-term debt

 

(133,048

)

 

 

 

(133,048

)

Payments of deferred financing costs and refinancing costs

 

(8,179

)

 

 

 

(8,179

)

Contribution from Ascent Capital

 

20,000

 

 

 

 

20,000

 

Dividend to Ascent Capital

 

(2,000

)

 

 

 

(2,000

)

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by financing activities

 

507,348

 

 

 

 

507,348

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(1,658

)

2,580

 

 

 

922

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

3,433

 

 

 

 

3,433

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

1,775

 

2,580

 

 

 

4,355