Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financials

v2.4.1.9
Consolidating Guarantor Financials
3 Months Ended
Mar. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Guarantor Financial Information
Consolidating Guarantor Financial Information

The Senior Notes were issued by Monitronics (the “Parent Issuer”) and are fully and unconditionally guaranteed, on a joint and several basis, by all of the Company’s existing domestic subsidiaries (“Subsidiary Guarantors”).  Ascent Capital has not guaranteed any of the Company’s obligations under the Senior Notes. Consolidating guarantor financial information has not been presented for the condensed consolidated balance sheet as of December 31, 2014, 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 unaudited condensed consolidating financial information for the Parent Issuer, the Subsidiary Guarantors and the non-guarantors are as follows:
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
(unaudited)
 
 
As of March 31, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
24,673

 
757

 

 

 
$
25,430

Restricted cash
123

 

 

 

 
123

Trade receivables, net
13,664

 
295

 

 

 
13,959

Deferred income tax assets, net
6,567

 

 

 

 
6,567

Prepaid and other current assets
12,991

 
993

 

 
(4,938
)
 
9,046

Total current assets
58,018

 
2,045

 

 
(4,938
)
 
55,125

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
60,244

 

 

 
(60,244
)
 

Property and equipment, net
23,682

 
391

 

 

 
24,073

Subscriber accounts, net
1,370,173

 
29,347

 

 

 
1,399,520

Dealer network and other intangible assets, net
39,892

 
1,289

 

 

 
41,181

Goodwill
527,191

 
35,820

 

 

 
563,011

Other assets, net
23,805

 

 

 

 
23,805

Total assets
$
2,103,005

 
68,892

 

 
(65,182
)
 
$
2,106,715

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable
$
3,489

 
1,802

 

 

 
$
5,291

Accrued payroll and related liabilities
2,826

 
209

 

 

 
3,035

Other accrued liabilities
43,023

 
5,114

 

 
(4,938
)
 
43,199

Deferred revenue
15,254

 
727

 

 

 
15,981

Holdback liability
17,591

 
77

 

 

 
17,668

Current portion of long-term debt
9,166

 

 

 

 
9,166

Total current liabilities
91,349

 
7,929

 

 
(4,938
)
 
94,340

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 

 
 

 
 

 
 

 
 

Long-term debt
1,698,333

 

 

 

 
1,698,333

Long-term holdback liability
4,816

 

 

 

 
4,816

Derivative financial instruments
9,447

 

 

 

 
9,447

Deferred income tax liability, net
16,600

 
200

 

 

 
16,800

Other liabilities
14,603

 
519

 

 

 
15,122

Total liabilities
1,835,148

 
8,648

 

 
(4,938
)
 
1,838,858

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
267,857

 
60,244

 

 
(60,244
)
 
267,857

Total liabilities and stockholder's equity
$
2,103,005

 
68,892

 

 
(65,182
)
 
$
2,106,715



MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended March 31, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
136,599

 
1,817

 

 

 
$
138,416

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
24,708

 
982

 

 

 
25,690

Selling, general, and administrative, including stock-based compensation
21,501

 
1,923

 

 

 
23,424

Amortization of subscriber accounts, dealer network and other intangible assets
62,508

 
633

 

 

 
63,141

Depreciation
2,291

 
6

 

 

 
2,297

Gain on disposal of operating assets
(3
)
 

 
0

 

 
(3
)
 
111,005

 
3,544

 

 

 
114,549

Operating income
25,594

 
(1,727
)
 

 

 
23,867

Other expense (income):
 

 
 

 
 

 
 

 
 

Equity in income of subsidiaries
1,929

 

 

 
(1,929
)
 

Interest expense
30,238

 
2

 

 

 
30,240

 
32,167

 
2

 

 
(1,929
)
 
30,240

Income (loss) before income taxes
(6,573
)
 
(1,729
)
 

 
1,929

 
(6,373
)
Income tax expense
1,761

 
200

 

 

 
1,961

Net income (loss)
(8,334
)
 
(1,929
)
 

 
1,929

 
(8,334
)
Other comprehensive loss:
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(4,463
)
 

 

 

 
(4,463
)
Total other comprehensive loss
(4,463
)
 

 

 

 
(4,463
)
Comprehensive income (loss)
$
(12,797
)
 
(1,929
)
 

 
1,929

 
$
(12,797
)

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

 
Three Months Ended March 31, 2014
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
104,093

 
28,771

 

 

 
$
132,864

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 

Cost of services
17,782

 
4,308

 

 

 
22,090

Selling, general, and administrative, including stock-based compensation
19,032

 
3,940

 

 

 
22,972

Amortization of subscriber accounts, dealer network and other intangible assets
45,263

 
16,517

 

 

 
61,780

Depreciation
1,908

 
475

 

 

 
2,383

Restructuring charges

 
547

 

 

 
547

 
83,985

 
25,787

 

 

 
109,772

Operating income
20,108

 
2,984

 

 

 
23,092

Other expense (income):
 

 
 

 
 

 
 

 
 

Equity in income of subsidiaries
(1,858
)
 

 

 
1,858

 

Interest expense
29,046

 
298

 

 

 
29,344

 
27,188

 
298

 

 
1,858

 
29,344

Income (loss) before income taxes
(7,080
)
 
2,686

 

 
(1,858
)
 
(6,252
)
Income tax expense
771

 
828

 

 

 
1,599

Net income (loss)
(7,851
)
 
1,858

 

 
(1,858
)
 
(7,851
)
Other comprehensive loss:
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(1,671
)
 

 

 

 
(1,671
)
Total other comprehensive loss
(1,671
)
 

 

 

 
(1,671
)
Comprehensive income (loss)
$
(9,522
)
 
1,858

 

 
(1,858
)
 
$
(9,522
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Three Months Ended March 31, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by (used in) operating activities
$
67,742

 
(3,686
)
 

 

 
$
64,056

Investing activities:
 

 
 

 
 

 
 

 
 

Capital expenditures
(2,693
)
 
(35
)
 

 

 
(2,728
)
Cost of subscriber accounts acquired
(60,519
)
 
(534
)
 

 

 
(61,053
)
Cash acquired (paid) on acquisition
(61,115
)
 
4,772

 


 


 
(56,343
)
Increase in restricted cash
(105
)
 

 

 

 
(105
)
Proceeds from disposal of operating assets
3

 

 

 

 
3

Net cash provided by (used in) investing activities
(124,429
)
 
4,203

 

 

 
(120,226
)
Financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from long-term debt
91,400

 

 

 

 
91,400

Payments on long-term debt
(33,892
)
 

 

 

 
(33,892
)
Payments of financing costs
(551
)
 

 

 

 
(551
)
Contribution from Ascent Capital
22,690

 

 

 

 
22,690

Net cash provided by financing activities
79,647

 

 

 

 
79,647

Net increase in cash and cash equivalents
22,960

 
517

 

 

 
23,477

Cash and cash equivalents at beginning of period
1,713

 
240

 

 

 
1,953

Cash and cash equivalents at end of period
$
24,673

 
757

 

 

 
$
25,430



MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Three Months Ended March 31, 2014
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
53,546

 
13,665

 

 

 
$
67,211

Investing activities:
 

 
 

 
 

 
 

 
 

Capital expenditures
(1,903
)
 
(35
)
 

 

 
(1,938
)
Cost of subscriber accounts acquired
(39,742
)
 
(14,047
)
 

 

 
(53,789
)
Increase in restricted cash
(79
)
 

 

 

 
(79
)
Other investing activities

 
(25
)
 

 

 
(25
)
Net cash used in investing activities
(41,724
)
 
(14,107
)
 

 

 
(55,831
)
Financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from long-term debt
42,900

 

 

 

 
42,900

Payments on long-term debt
(27,192
)
 

 

 

 
(27,192
)
Net cash provided by financing activities
15,708

 

 

 

 
15,708

Net increase (decrease) in cash and cash equivalents
27,530

 
(442
)
 

 

 
27,088

Cash and cash equivalents at beginning of period
1,775

 
2,580

 

 

 
4,355

Cash and cash equivalents at end of period
$
29,305

 
2,138

 

 

 
$
31,443