Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information

v3.7.0.1
Consolidating Guarantor Financial Information
3 Months Ended
Mar. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Guarantor Financial Information
Consolidating Guarantor Financial Information

The Senior Notes were issued by MONI (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. 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 Sheet
(unaudited)
 
 
As of March 31, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
27,741

 
1,248

 

 

 
28,989

Trade receivables, net
12,451

 
520

 

 

 
12,971

Prepaid and other current assets
60,222

 
1,563

 

 
(53,572
)
 
8,213

Total current assets
100,414

 
3,331

 

 
(53,572
)
 
50,173

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
16,852

 

 

 
(16,852
)
 

Property and equipment, net
25,532

 
1,821

 

 

 
27,353

Subscriber accounts, net
1,340,628

 
37,310

 

 

 
1,377,938

Dealer network and other intangible assets, net
13,338

 
1,029

 

 

 
14,367

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
11,311

 
21

 

 

 
11,332

Total assets
$
2,035,266

 
79,870

 

 
(70,424
)
 
2,044,712

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
8,420

 
1,162

 

 

 
9,582

Accrued payroll and related liabilities
3,765

 
520

 

 

 
4,285

Other accrued liabilities
42,792

 
54,276

 

 
(53,572
)
 
43,496

Deferred revenue
14,756

 
1,412

 

 

 
16,168

Holdback liability
13,288

 
480

 

 

 
13,768

Current portion of long-term debt
11,000

 

 

 

 
11,000

Total current liabilities
94,021

 
57,850

 

 
(53,572
)
 
98,299

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,711,584

 

 

 

 
1,711,584

Long-term holdback liability
2,352

 

 

 

 
2,352

Derivative financial instruments
11,828

 

 

 

 
11,828

Deferred income tax liability, net
16,480

 
1,902

 

 

 
18,382

Other liabilities
3,638

 
3,266

 

 

 
6,904

Total liabilities
1,839,903

 
63,018

 

 
(53,572
)
 
1,849,349

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
195,363

 
16,852

 

 
(16,852
)
 
195,363

Total liabilities and stockholder's equity
$
2,035,266

 
79,870

 

 
(70,424
)
 
2,044,712


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of December 31, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,739

 
1,438

 

 

 
3,177

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 liability
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 Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
Three Months Ended March 31, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
133,118

 
8,082

 

 

 
141,200

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
26,307

 
3,662

 

 

 
29,969

Selling, general, and administrative, including stock-based compensation
24,717

 
8,006

 

 

 
32,723

Radio conversion costs
187

 
45

 

 

 
232

Amortization of subscriber accounts, dealer network and other intangible assets
57,903

 
1,644

 

 

 
59,547

Depreciation
1,976

 
144

 

 

 
2,120

 
111,090

 
13,501

 

 

 
124,591

Operating income (loss)
22,028

 
(5,419
)
 

 

 
16,609

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
5,682

 

 

 
(5,682
)
 

Interest expense
35,833

 
5

 

 

 
35,838

 
41,515

 
5

 

 
(5,682
)
 
35,838

(Loss) income before income taxes
(19,487
)
 
(5,424
)
 

 
5,682

 
(19,229
)
Income tax expense
1,526

 
258

 

 

 
1,784

Net (loss) income
(21,013
)
 
(5,682
)
 

 
5,682

 
(21,013
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
1,049

 

 

 

 
1,049

Total other comprehensive income
1,049

 

 

 

 
1,049

Comprehensive loss
$
(19,964
)
 
(5,682
)
 

 
5,682

 
(19,964
)


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

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

 
5,141

 
(18,420
)
Income tax expense
1,566

 
224

 

 

 
1,790

Net (loss) income
(20,210
)
 
(5,141
)
 

 
5,141

 
(20,210
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
(11,845
)
 

 

 

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

 

 

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

 
5,141

 
(32,055
)










MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Three Months Ended March 31, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
51,338

 
862

 

 

 
52,200

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(1,347
)
 
(347
)
 

 

 
(1,694
)
Cost of subscriber accounts acquired
(46,003
)
 
(705
)
 

 

 
(46,708
)
Net cash used in investing activities
(47,350
)
 
(1,052
)
 

 

 
(48,402
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
64,750

 

 

 

 
64,750

Payments on long-term debt
(42,600
)
 

 

 

 
(42,600
)
Value of shares withheld for share-based compensation
(136
)
 

 

 

 
(136
)
Net cash provided by financing activities
22,014

 

 

 

 
22,014

Net increase (decrease) in cash and cash equivalents
26,002

 
(190
)
 

 

 
25,812

Cash and cash equivalents at beginning of period
1,739

 
1,438

 

 

 
3,177

Cash and cash equivalents at end of period
$
27,741

 
1,248

 

 

 
28,989


 
Three Months Ended March 31, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
53,690

 
1,107

 

 

 
54,797

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
)
Value of shares withheld for share-based compensation
(58
)
 

 

 

 
(58
)
Net cash provided by financing activities
20,517

 

 

 

 
20,517

Net increase (decrease) 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