Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.4.0.3
Consolidating Guarantor Financial Information (Tables)
3 Months Ended
Mar. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheet
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of March 31, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
28,107

 
896

 

 

 
$
29,003

Trade receivables, net
12,927

 
407

 

 

 
13,334

Prepaid and other current assets
36,022

 
1,971

 

 
(26,930
)
 
11,063

Total current assets
77,056

 
3,274

 

 
(26,930
)
 
53,400

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
38,779

 

 

 
(38,779
)
 

Property and equipment, net
25,570

 
1,145

 

 

 
26,715

Subscriber accounts, net
1,376,419

 
33,070

 

 

 
1,409,489

Dealer network and other intangible assets, net
23,038

 
1,159

 

 

 
24,197

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
3,579

 
9

 

 

 
3,588

Total assets
$
2,071,632

 
75,015

 

 
(65,709
)
 
$
2,080,938

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
6,331

 
1,229

 

 

 
$
7,560

Accrued payroll and related liabilities
3,415

 
244

 

 

 
3,659

Other accrued liabilities
43,742

 
30,289

 

 
(26,930
)
 
47,101

Deferred revenue
15,147

 
1,120

 

 

 
16,267

Holdback liability
13,792

 
466

 

 

 
14,258

Current portion of long-term debt
5,500

 

 

 

 
5,500

Total current liabilities
87,927

 
33,348

 

 
(26,930
)
 
94,345

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,673,464

 

 

 

 
1,673,464

Long-term holdback liability
3,614

 

 

 

 
3,614

Derivative financial instruments
25,364

 

 

 

 
25,364

Deferred income tax liability, net
13,221

 
1,022

 

 

 
14,243

Other liabilities
10,447

 
1,866

 

 

 
12,313

Total liabilities
1,814,037

 
36,236

 

 
(26,930
)
 
1,823,343

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
257,595

 
38,779

 

 
(38,779
)
 
257,595

Total liabilities and stockholder's equity
$
2,071,632

 
75,015

 

 
(65,709
)
 
$
2,080,938


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of December 31, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,513

 
1,067

 

 

 
$
2,580

Restricted cash
55

 

 

 

 
55

Trade receivables, net
13,224

 
398

 

 

 
13,622

Prepaid and other current assets
30,542

 
1,807

 

 
(22,459
)
 
9,890

Total current assets
45,334

 
3,272

 

 
(22,459
)
 
26,147

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
43,920

 

 

 
(43,920
)
 

Property and equipment, net
25,842

 
812

 

 

 
26,654

Subscriber accounts, net
1,390,493

 
33,045

 

 

 
1,423,538

Dealer network and other intangible assets, net
25,462

 
1,192

 

 

 
26,654

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
3,718

 
7

 

 

 
3,725

Total assets
$
2,061,960

 
74,686

 

 
(66,379
)
 
$
2,070,267

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
7,383

 
1,238

 

 

 
$
8,621

Accrued payroll and related liabilities
2,894

 
585

 

 

 
3,479

Other accrued liabilities
32,224

 
22,757

 

 
(22,459
)
 
32,522

Deferred revenue
15,151

 
1,056

 

 

 
16,207

Holdback liability
15,986

 
400

 

 

 
16,386

Current portion of long-term debt
5,500

 

 

 

 
5,500

Total current liabilities
79,138

 
26,036

 

 
(22,459
)
 
82,715

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,739,147

 

 

 

 
1,739,147

Long-term holdback liability
3,786

 

 

 

 
3,786

Derivative financial instruments
13,470

 

 

 

 
13,470

Deferred income tax liability, net
12,391

 
800

 

 

 
13,191

Other liabilities
12,963

 
3,930

 

 

 
16,893

Total liabilities
1,860,895

 
30,766

 

 
(22,459
)
 
1,869,202

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
201,065

 
43,920

 

 
(43,920
)
 
201,065

Total liabilities and stockholder's equity
$
2,061,960

 
74,686

 

 
(66,379
)
 
$
2,070,267

Condensed Income Statement
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended March 31, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
137,307

 
5,961

 

 

 
$
143,268

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
26,242

 
3,233

 

 

 
29,475

Selling, general, and administrative, including stock-based compensation
22,531

 
6,082

 

 

 
28,613

Radio conversion costs
9,079

 

 

 

 
9,079

Amortization of subscriber accounts, dealer network and other intangible assets
59,828

 
1,494

 

 

 
61,322

Depreciation
1,910

 
65

 

 

 
1,975

Gain on disposal of operating assets

 

 
0

 

 

 
119,590

 
10,874

 

 

 
130,464

Operating income (loss)
17,717

 
(4,913
)
 

 

 
12,804

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
5,141

 

 

 
(5,141
)
 

Interest expense
31,220

 
4

 

 

 
31,224

 
36,361

 
4

 

 
(5,141
)
 
31,224

Loss before income taxes
(18,644
)
 
(4,917
)
 

 
5,141

 
(18,420
)
Income tax expense
1,566

 
224

 

 

 
1,790

Net loss
(20,210
)
 
(5,141
)
 

 
5,141

 
(20,210
)
Other comprehensive income:
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
(11,845
)
 

 

 

 
(11,845
)
Total other comprehensive income
(11,845
)
 

 

 

 
(11,845
)
Comprehensive loss
$
(32,055
)
 
(5,141
)
 

 
5,141

 
$
(32,055
)
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement 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
24,185

 
982

 

 

 
25,167

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

 
1,923

 

 

 
23,424

Radio conversion costs
523

 

 

 

 
523

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
)
 

 

 

 
(3
)
 
111,005

 
3,544

 

 

 
114,549

Operating income (loss)
25,594

 
(1,727
)
 

 

 
23,867

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
1,929

 

 

 
(1,929
)
 

Interest expense
30,238

 
2

 

 

 
30,240

 
32,167

 
2

 

 
(1,929
)
 
30,240

Loss before income taxes
(6,573
)
 
(1,729
)
 

 
1,929

 
(6,373
)
Income tax expense
1,761

 
200

 

 

 
1,961

Net 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 loss
$
(12,797
)
 
(1,929
)
 

 
1,929

 
$
(12,797
)

Condensed Cash Flow Statement
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Three Months Ended March 31, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
53,632

 
1,107

 

 

 
$
54,739

Investing activities:
 

 
 

 
 

 
 

 
 

Capital expenditures
(1,877
)
 
(399
)
 

 

 
(2,276
)
Cost of subscriber accounts acquired
(45,791
)
 
(879
)
 

 

 
(46,670
)
Increase in restricted cash
55

 

 

 

 
55

Net cash used in investing activities
(47,613
)
 
(1,278
)
 

 

 
(48,891
)
Financing activities:
 

 
 

 
 

 
 

 
 

Proceeds from long-term debt
59,250

 

 

 

 
59,250

Payments on long-term debt
(38,675
)
 

 

 

 
(38,675
)
Net cash provided by financing activities
20,575

 

 

 

 
20,575

Net increase in cash and cash equivalents
26,594

 
(171
)
 

 

 
26,423

Cash and cash equivalents at beginning of period
1,513

 
1,067

 

 

 
2,580

Cash and cash equivalents at end of period
$
28,107

 
896

 

 

 
$
29,003



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 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 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