Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.3.0.814
Consolidating Guarantor Financial Information (Tables)
9 Months Ended
Sep. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheet
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of September 30, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 

 
 

 
 

 
 

 
 

Current assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
27,372

 
1,216

 

 

 
$
28,588

Restricted cash
60

 

 

 

 
60

Trade receivables, net
13,865

 
371

 

 

 
14,236

Deferred income tax assets, net
6,567

 

 

 

 
6,567

Prepaid and other current assets
26,056

 
1,466

 

 
(16,851
)
 
10,671

Total current assets
73,920

 
3,053

 

 
(16,851
)
 
60,122

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
50,270

 

 

 
(50,270
)
 

Property and equipment, net
26,192

 
642

 

 

 
26,834

Subscriber accounts, net
1,390,954

 
32,619

 

 

 
1,423,573

Dealer network and other intangible assets, net
29,965

 
1,224

 

 

 
31,189

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
22,832

 
6

 

 

 
22,838

Total assets
$
2,121,324

 
73,902

 

 
(67,121
)
 
$
2,128,105

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 

 
 

 
 

 
 

 
 

Current liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable
$
8,127

 
1,029

 

 

 
$
9,156

Accrued payroll and related liabilities
3,666

 
465

 

 

 
4,131

Other accrued liabilities
41,541

 
17,134

 

 
(16,851
)
 
41,824

Deferred revenue
14,524

 
973

 

 

 
15,497

Holdback liability
18,232

 
337

 

 

 
18,569

Current portion of long-term debt
5,500

 

 

 

 
5,500

Total current liabilities
91,590

 
19,938

 

 
(16,851
)
 
94,677

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 

 
 

 
 

 
 

 
 

Long-term debt
1,754,310

 

 

 

 
1,754,310

Long-term holdback liability
3,003

 

 

 

 
3,003

Derivative financial instruments
17,166

 

 

 

 
17,166

Deferred income tax liability, net
18,262

 
608

 

 

 
18,870

Other liabilities
13,573

 
3,086

 

 

 
16,659

Total liabilities
1,897,904

 
23,632

 

 
(16,851
)
 
1,904,685

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
223,420

 
50,270

 

 
(50,270
)
 
223,420

Total liabilities and stockholder's equity
$
2,121,324

 
73,902

 

 
(67,121
)
 
$
2,128,105

Condensed Income Statement
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended September 30, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
136,872

 
4,974

 

 

 
$
141,846

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
25,144

 
3,101

 

 

 
28,245

Selling, general, and administrative, including stock-based compensation
22,079

 
5,858

 

 

 
27,937

Radio conversion costs
3,570

 

 

 

 
3,570

Amortization of subscriber accounts, dealer network and other intangible assets
65,548

 
1,410

 

 

 
66,958

Depreciation
2,684

 
33

 

 

 
2,717

Gain on disposal of operating assets
(1
)
 

 
0

 

 
(1
)
 
119,024

 
10,402

 

 

 
129,426

Operating income (loss)
17,848

 
(5,428
)
 

 

 
12,420

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
5,638

 

 

 
(5,638
)
 

Interest expense
31,849

 
4

 

 

 
31,853

Refinancing expense

 

 

 

 

 
37,487

 
4

 

 
(5,638
)
 
31,853

Loss before income taxes
(19,639
)
 
(5,432
)
 

 
5,638

 
(19,433
)
Income tax expense
1,775

 
206

 

 

 
1,981

Net loss
(21,414
)
 
(5,638
)
 

 
5,638

 
(21,414
)
Other comprehensive income:
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
(8,946
)
 

 

 

 
(8,946
)
Total other comprehensive income
(8,946
)
 

 

 

 
(8,946
)
Comprehensive loss
$
(30,360
)
 
(5,638
)
 

 
5,638

 
$
(30,360
)
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Nine Months Ended September 30, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
410,523

 
11,282

 

 

 
$
421,805

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
74,268

 
6,747

 

 

 
81,015

Selling, general, and administrative, including stock-based compensation
64,209

 
12,849

 

 

 
77,058

Radio conversion costs
4,543

 

 

 

 
4,543

Amortization of subscriber accounts, dealer network and other intangible assets
190,289

 
3,336

 

 

 
193,625

Depreciation
7,438

 
60

 

 

 
7,498

Gain on disposal of operating assets
(4
)
 

 

 

 
(4
)
 
340,743

 
22,992

 

 

 
363,735

Operating income (loss)
69,780

 
(11,710
)
 

 

 
58,070

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
12,341

 

 

 
(12,341
)
 

Interest expense
93,367

 
17

 

 

 
93,384

Refinancing expense
4,468

 

 

 

 
4,468

 
110,176

 
17

 

 
(12,341
)
 
97,852

Loss before income taxes
(40,396
)
 
(11,727
)
 

 
12,341

 
(39,782
)
Income tax expense
5,339

 
614

 

 

 
5,953

Net loss
(45,735
)
 
(12,341
)
 

 
12,341

 
(45,735
)
Other comprehensive loss:
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(12,407
)
 

 

 

 
(12,407
)
Total other comprehensive loss
(12,407
)
 

 

 

 
(12,407
)
Comprehensive loss
$
(58,142
)
 
(12,341
)
 

 
12,341

 
$
(58,142
)

Condensed Cash Flow Statement
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Nine Months Ended September 30, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
171,688

 
1,549

 

 

 
$
173,237

Investing activities:
 

 
 

 
 

 
 

 
 

Capital expenditures
(9,695
)
 
(339
)
 

 

 
(10,034
)
Cost of subscriber accounts acquired
(200,044
)
 
(5,006
)
 

 

 
(205,050
)
Cash acquired (paid) on acquisition
(61,550
)
 
4,772

 


 


 
(56,778
)
Increase in restricted cash
(42
)
 

 

 

 
(42
)
Proceeds from disposal of operating assets
4

 

 

 

 
4

Net cash used in investing activities
(271,327
)
 
(573
)
 

 

 
(271,900
)
Financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from long-term debt
749,550

 

 

 

 
749,550

Payments on long-term debt
(640,465
)
 

 

 

 
(640,465
)
Payments of financing costs
(6,477
)
 

 

 

 
(6,477
)
Contribution from Ascent Capital
22,690

 

 

 

 
22,690

Net cash provided by financing activities
125,298

 

 

 

 
125,298

Net increase in cash and cash equivalents
25,659

 
976

 

 

 
26,635

Cash and cash equivalents at beginning of period
1,713

 
240

 

 

 
1,953

Cash and cash equivalents at end of period
$
27,372

 
1,216

 

 

 
$
28,588