Annual report pursuant to Section 13 and 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.7.0.1
Consolidating Guarantor Financial Information (Tables)
12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheet
 
 
As of December 31, 2016
 
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,739

 
1,438

 

 

 
$
3,177

Restricted cash
 

 

 

 

 

Trade receivables, net
 
13,265

 
604

 

 

 
13,869

Prepaid and other current assets
 
51,251

 
2,171

 

 
(44,062
)
 
9,360

Total current assets
 
66,255

 
4,213

 

 
(44,062
)
 
26,406

 
 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
 
22,533

 

 

 
(22,533
)
 

Property and equipment, net
 
26,652

 
1,618

 

 

 
28,270

Subscriber accounts, net
 
1,349,285

 
37,475

 

 

 
1,386,760

Dealer network and other intangible assets, net
 
15,762

 
1,062

 

 

 
16,824

Goodwill
 
527,191

 
36,358

 

 

 
563,549

Other assets, net
 
11,889

 
19

 

 

 
11,908

Total assets
 
$
2,019,567

 
80,745

 

 
(66,595
)
 
$
2,033,717

 
 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
9,919

 
1,542

 

 

 
$
11,461

Accrued payroll and related liabilities
 
3,731

 
337

 

 

 
4,068

Other accrued liabilities
 
25,951

 
49,690

 

 
(44,062
)
 
31,579

Deferred revenue
 
13,807

 
1,340

 

 

 
15,147

Holdback liability
 
13,434

 
482

 

 

 
13,916

Current portion of long-term debt
 
11,000

 

 

 

 
11,000

Total current liabilities
 
77,842

 
53,391

 

 
(44,062
)
 
87,171

 
 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
 
Long-term debt
 
1,687,778

 

 

 

 
1,687,778

Long-term holdback instruments
 
2,645

 

 

 

 
2,645

Derivative financial instruments
 
16,948

 

 

 

 
16,948

Deferred income tax liability, net
 
15,649

 
1,681

 

 

 
17,330

Other liabilities
 
3,760

 
3,140

 

 

 
6,900

Total liabilities
 
1,804,622

 
58,212

 

 
(44,062
)
 
1,818,772

 
 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
 
214,945

 
22,533

 

 
(22,533
)
 
214,945

Total liabilities and stockholder's equity
 
2,019,567

 
80,745

 

 
(66,595
)
 
2,033,717


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
Amounts in thousands

 
 
As of Balance at December 31, 2015
 
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
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 instruments
 
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 and Comprehensive Income (Loss)
 
 
Year Ended December 31, 2016
 
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
Net revenue
 
$
543,181

 
27,191

 

 

 
$
570,372

 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Cost of services
 
101,940

 
13,296

 

 

 
115,236

Selling, general, and administrative, including stock-based compensation
 
86,670

 
27,482

 

 

 
114,152

Radio conversion costs
 
18,204

 
218

 

 

 
18,422

Amortization of subscriber accounts, dealer network and other intangible assets
 
240,568

 
6,185

 

 

 
246,753

Depreciation
 
7,784

 
376

 

 

 
8,160

Gain on disposal of operating assets
 

 

 

 

 

 
 
455,166

 
47,557

 

 

 
502,723

Operating income (loss)
 
88,015

 
(20,366
)
 

 

 
67,649

 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
 
21,387

 

 

 
(21,387
)
 

Interest expense
 
127,290

 
18

 

 

 
127,308

Refinancing expense
 
9,500

 

 

 

 
9,500

 
 
158,177

 
18

 

 
(21,387
)
 
136,808

Loss before income taxes
 
(70,162
)
 
(20,384
)
 

 
21,387

 
(69,159
)
Income tax expense
 
6,145

 
1,003

 

 

 
7,148

Net loss
 
(76,307
)
 
(21,387
)
 

 
21,387

 
(76,307
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
 
4,589

 

 

 

 
4,589

Total other comprehensive loss
 
(71,718
)
 
(21,387
)
 

 
21,387

 
(71,718
)





MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidating Statement of Operations and Comprehensive Income (Loss)
Amounts in thousands


 
 
Year Ended December 31, 2015
 
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
Net revenue
 
$
546,597

 
16,759

 

 

 
$
563,356

 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
Cost of services
 
100,233

 
10,013

 

 

 
110,246

Selling, general, and administrative, including stock-based compensation
 
86,683

 
19,604

 

 

 
106,287

Radio conversion costs
 
14,369

 

 

 

 
14,369

Amortization of subscriber accounts, dealer network and other intangible assets
 
253,773

 
4,895

 

 

 
258,668

Depreciation
 
9,960

 
106

 

 

 
10,066

Gain on disposal of operating assets
 
(5
)
 

 

 

 
(5
)
 
 
465,013

 
34,618

 

 

 
499,631

Operating income (loss)
 
81,584

 
(17,859
)
 

 

 
63,725

 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
 
18,689

 

 

 
(18,689
)
 

Interest expense
 
125,394

 
21

 

 

 
125,415

Refinancing expense
 
4,468

 

 

 

 
4,468

 
 
148,551

 
21

 

 
(18,689
)
 
129,883

Loss before income taxes
 
(66,967
)
 
(17,880
)
 

 
18,689

 
(66,158
)
Income tax expense
 
5,481

 
809

 

 

 
6,290

Net loss
 
(72,448
)
 
(18,689
)
 

 
18,689

 
(72,448
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
 
(8,741
)
 

 

 

 
(8,741
)
Total other comprehensive loss
 
(81,189
)
 
(18,689
)
 

 
18,689

 
(81,189
)
Condensed Cash Flow Statement
 
 
Year Ended December 31, 2016
 
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net cash provided by operating activities
 
$
181,384

 
9,143

 

 

 
$
190,527

Investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(7,997
)
 
(1,181
)
 

 

 
(9,178
)
Cost of subscriber accounts acquired
 
(193,790
)
 
(7,591
)
 

 

 
(201,381
)
Increase in restricted cash
 
55

 

 

 

 
55

Net cash used in investing activities
 
(201,732
)
 
(8,772
)
 

 

 
(210,504
)
Financing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
 
1,280,700

 

 

 

 
1,280,700

Payments on long-term debt
 
(1,238,059
)
 

 

 

 
(1,238,059
)
Refinance costs
 
(16,946
)
 
 
 
 
 
 
 
(16,946
)
Value of shares withheld for share-based compensation
 
(121
)
 

 

 

 
(121
)
Dividend to Ascent Capital
 
(5,000
)
 

 

 

 
(5,000
)
 
 
20,574

 

 

 

 
20,574

Net increase in cash and cash equivalents
 
226

 
371

 

 

 
597

Cash and cash equivalents at beginning of period
 
1,513

 
1,067

 

 

 
2,580

Cash and cash equivalents at end of period
 
$
1,739

 
1,438

 

 

 
$
3,177


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidating Statements of Cash flows
Amounts in thousands



 
 
Year Ended December 31, 2015
 
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net cash provided by operating activities
 
$
201,477

 
7,685

 

 

 
$
209,162

Investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(11,866
)
 
(556
)
 

 

 
(12,422
)
Cost of subscriber accounts acquired
 
(260,256
)
 
(6,302
)
 

 

 
(266,558
)
Cash paid for acquisition, net of cash acquired
 
(56,778
)
 

 

 

 
(56,778
)
Increase in restricted cash
 
(37
)
 

 

 

 
(37
)
Proceeds from sale of assets
 
5

 

 

 

 
5

Net cash used in investing activities
 
(328,932
)
 
(6,858
)
 

 

 
(335,790
)
Financing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
 
778,000

 

 

 

 
778,000

Payments on long-term debt
 
(666,640
)
 

 

 

 
(666,640
)
Refinance costs
 
(6,477
)
 
 
 
 
 
 
 
(6,477
)
Value of shares withheld for share-based compensation
 
(318
)
 

 

 

 
(318
)
Contributions from Ascent Capital
 
22,690

 
 
 
 
 
 
 
22,690

 
 
127,255

 

 

 

 
127,255

Net increase in cash and cash equivalents
 
(200
)
 
827

 

 

 
627

Cash and cash equivalents at beginning of period
 
1,713

 
240

 

 

 
1,953

Cash and cash equivalents at end of period
 
$
1,513

 
1,067

 

 

 
$
2,580