Quarterly report pursuant to Section 13 or 15(d)

Security Networks Acquisition (Tables)

v2.4.0.8
Security Networks Acquisition (Tables)
9 Months Ended
Sep. 30, 2013
Security Networks Acquisition  
Schedule of purchase price allocation

Under the acquisition method of accounting, the Security Networks Purchase Price has been allocated to Security Networks’ tangible and identifiable intangible assets acquired and liabilities assumed based on their preliminary estimates of fair value as follows (amounts in thousands):

 

Cash

 

$

3,096

 

Trade receivables

 

1,305

 

Other current assets

 

1,759

 

Property and equipment

 

1,404

 

Subscriber accounts

 

307,700

 

Dealer network and other intangible assets

 

48,500

 

Goodwill

 

173,033

 

Purchase holdbacks, current and non-current

 

(9,615

)

Other current and non-current liabilities

 

(25,568

)

Fair value of consideration

 

$

501,614

 

Schedule of unaudited pro forma information

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

(amounts in thousands, except per share amounts)

 

As reported:

 

 

 

 

 

 

 

 

 

Net revenue

 

$

115,844

(a)

84,667

 

$

318,275

(a)

249,863

 

Net loss

 

(9,310

)

(5,095

)

(7,369

)

(12,620

)

 

 

 

 

 

 

 

 

 

 

Supplemental pro-forma:

 

 

 

 

 

 

 

 

 

Net revenue

 

$

131,951

 

105,587

 

$

382,789

 

303,483

(b)

Net loss (c)

 

(6,270

)

(16,161

)

(20,717

)

(54,164

)

 

(a)         As reported net revenue for the three and nine months ended September 30, 2013 reflects the negative impact of an approximate $2,500,000 fair value adjustment that reduced deferred revenue acquired in the Security Networks Acquisition.

(b)         Pro-forma net revenue for the nine months ended September 30, 2012 reflects the negative impact of an approximate $2,700,000 fair value adjustment that would have reduced deferred revenue acquired in the Security Networks Acquisition.

(c)          The pro-forma net loss from continuing operations amounts for the three and nine months ended September 30, 2013 include non-recurring acquisition costs incurred by the Company of $1,032,000 and $2,470,000, respectively.