Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.8.0.1
Consolidating Guarantor Financial Information (Tables)
9 Months Ended
Sep. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of September 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
27,837

 
413

 

 

 
28,250

Trade receivables, net
12,624

 
582

 

 

 
13,206

Prepaid and other current assets
68,197

 
2,190

 

 
(61,644
)
 
8,743

Total current assets
108,658

 
3,185

 

 
(61,644
)
 
50,199

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
6,913

 

 

 
(6,913
)
 

Property and equipment, net
28,896

 
2,057

 

 

 
30,953

Subscriber accounts, net
1,296,406

 
37,221

 

 

 
1,333,627

Dealer network and other intangible assets, net
8,488

 
964

 

 

 
9,452

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
6,841

 
27

 

 

 
6,868

Total assets
$
1,983,393

 
79,812

 

 
(68,557
)
 
1,994,648

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
8,845

 
1,610

 

 

 
10,455

Accrued payroll and related liabilities
5,007

 
676

 

 

 
5,683

Other accrued liabilities
60,836

 
62,200

 

 
(61,644
)
 
61,392

Deferred revenue
12,708

 
1,483

 

 

 
14,191

Holdback liability
10,165

 
541

 

 

 
10,706

Current portion of long-term debt
11,000

 

 

 

 
11,000

Total current liabilities
108,561

 
66,510

 

 
(61,644
)
 
113,427

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,720,193

 

 

 

 
1,720,193

Long-term holdback liability
1,982

 

 

 

 
1,982

Derivative financial instruments
16,122

 

 

 

 
16,122

Deferred income tax liability, net
18,144

 
2,344

 

 

 
20,488

Other liabilities
2,461

 
4,045

 

 

 
6,506

Total liabilities
1,867,463

 
72,899

 

 
(61,644
)
 
1,878,718

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
115,930

 
6,913

 

 
(6,913
)
 
115,930

Total liabilities and stockholder's equity
$
1,983,393

 
79,812

 

 
(68,557
)
 
1,994,648


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

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
Three Months Ended September 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
129,501

 
8,710

 

 

 
138,211

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
26,479

 
3,734

 

 

 
30,213

Selling, general, and administrative, including stock-based compensation
25,145

 
8,329

 

 

 
33,474

Radio conversion costs
68

 
6

 

 

 
74

Amortization of subscriber accounts, dealer network and other intangible assets
57,770

 
1,614

 

 

 
59,384

Depreciation
1,980

 
190

 

 

 
2,170

 
111,442

 
13,873

 

 

 
125,315

Operating income (loss)
18,059

 
(5,163
)
 

 

 
12,896

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
5,423

 

 

 
(5,423
)
 

Interest expense
36,665

 

 

 

 
36,665

 
42,088

 

 

 
(5,423
)
 
36,665

Loss before income taxes
(24,029
)
 
(5,163
)
 

 
5,423

 
(23,769
)
Income tax expense
1,507

 
260

 

 

 
1,767

Net loss
(25,536
)
 
(5,423
)
 

 
5,423

 
(25,536
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
227

 

 

 

 
227

Total other comprehensive income
227

 

 

 

 
227

Comprehensive loss
$
(25,309
)
 
(5,423
)
 

 
5,423

 
(25,309
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended September 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
135,710

 
7,055

 

 

 
142,765

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 
 
 
 
 
 
 
 
0

Cost of services
25,809

 
3,240

 

 

 
29,049

Selling, general, and administrative, including stock-based compensation
22,459

 
7,268

 

 

 
29,727

Radio conversion costs
1,157

 
106

 

 

 
1,263

Amortization of subscriber accounts, dealer network and other intangible assets
60,582

 
1,574

 

 

 
62,156

Depreciation
1,981

 
103

 

 

 
2,084

 
111,988

 
12,291

 

 

 
124,279

Operating income (loss)
23,722

 
(5,236
)
 

 

 
18,486

Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
5,544

 

 

 
(5,544
)
 

Interest expense
30,206

 
5

 

 

 
30,211

Refinancing expense
9,348

 

 

 

 
9,348

 
45,098

 
5

 

 
(5,544
)
 
39,559

Loss before income taxes
(21,376
)
 
(5,241
)
 

 
5,544

 
(21,073
)
Income tax expense
1,626

 
303

 

 

 
1,929

Net loss
(23,002
)
 
(5,544
)
 

 
5,544

 
(23,002
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
(2,459
)
 

 

 

 
(2,459
)
Total other comprehensive loss
(2,459
)
 

 

 

 
(2,459
)
Comprehensive loss
$
(25,461
)
 
(5,544
)
 

 
5,544

 
(25,461
)







MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
Nine Months Ended September 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
394,842

 
25,067

 

 

 
419,909

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
78,742

 
11,057

 

 

 
89,799

Selling, general, and administrative, including stock-based compensation
103,315

 
23,444

 

 

 
126,759

Radio conversion costs
327

 
56

 

 

 
383

Amortization of subscriber accounts, dealer network and other intangible assets
174,046

 
4,850

 

 

 
178,896

Depreciation
5,916

 
499

 

 

 
6,415

 
362,346

 
39,906

 

 

 
402,252

Operating income (loss)
32,496

 
(14,839
)
 

 

 
17,657

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
15,620

 

 

 
(15,620
)
 

Interest expense
108,975

 
5

 

 

 
108,980

 
124,595

 
5

 

 
(15,620
)
 
108,980

Loss before income taxes
(92,099
)
 
(14,844
)
 

 
15,620

 
(91,323
)
Income tax expense
4,554

 
776

 

 

 
5,330

Net loss
(96,653
)
 
(15,620
)
 

 
15,620

 
(96,653
)
Other comprehensive loss:
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(4,501
)
 

 

 

 
(4,501
)
Total other comprehensive loss
(4,501
)
 

 

 

 
(4,501
)
Comprehensive loss
$
(101,154
)
 
(15,620
)
 

 
15,620

 
(101,154
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Nine Months Ended September 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
410,229

 
19,460

 

 

 
429,689

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 
 
 
 
 
 
 
 
0

Cost of services
76,555

 
9,606

 

 

 
86,161

Selling, general, and administrative, including stock-based compensation
67,847

 
19,696

 

 

 
87,543

Radio conversion costs
17,778

 
160

 

 

 
17,938

Amortization of subscriber accounts, dealer network and other intangible assets
180,892

 
4,523

 

 

 
185,415

Depreciation
5,830

 
254

 

 

 
6,084

 
348,902

 
34,239

 

 

 
383,141

Operating income (loss)
61,327

 
(14,779
)
 

 

 
46,548

Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
15,545

 

 

 
(15,545
)
 

Interest expense
91,445

 
14

 

 

 
91,459

Refinancing expense
9,348

 

 

 

 
9,348

 
116,338

 
14

 

 
(15,545
)
 
100,807

Loss before income taxes
(55,011
)
 
(14,793
)
 

 
15,545

 
(54,259
)
Income tax expense
4,710

 
752

 

 

 
5,462

Net loss
(59,721
)
 
(15,545
)
 

 
15,545

 
(59,721
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
(19,001
)
 

 

 

 
(19,001
)
Total other comprehensive loss
(19,001
)
 

 

 

 
(19,001
)
Comprehensive loss
$
(78,722
)
 
(15,545
)
 

 
15,545

 
(78,722
)
Condensed Consolidating Statement of Cash Flows
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Nine Months Ended September 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
125,134

 
2,093

 

 

 
127,227

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(9,044
)
 
(955
)
 

 

 
(9,999
)
Cost of subscriber accounts acquired
(116,918
)
 
(2,163
)
 

 

 
(119,081
)
Net cash used in investing activities
(125,962
)
 
(3,118
)
 

 

 
(129,080
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
159,850

 

 

 

 
159,850

Payments on long-term debt
(132,500
)
 

 

 

 
(132,500
)
Value of shares withheld for share-based compensation
(424
)
 

 

 

 
(424
)
Net cash provided by financing activities
26,926

 

 

 

 
26,926

Net increase (decrease) in cash and cash equivalents
26,098

 
(1,025
)
 

 

 
25,073

Cash and cash equivalents at beginning of period
1,739

 
1,438

 

 

 
3,177

Cash and cash equivalents at end of period
$
27,837

 
413

 

 

 
28,250


 
Nine Months Ended September 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
151,459

 
7,609

 

 

 
159,068

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(4,138
)
 
(933
)
 

 

 
(5,071
)
Cost of subscriber accounts acquired
(153,491
)
 
(6,626
)
 

 

 
(160,117
)
Increase in restricted cash
55

 

 

 

 
55

Net cash used in investing activities
(157,574
)
 
(7,559
)
 

 

 
(165,133
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
1,249,000

 

 

 

 
1,249,000

Payments on long-term debt
(1,200,009
)
 

 

 

 
(1,200,009
)
Value of shares withheld for share-based compensation
(109
)
 

 

 

 
(109
)
Payments of financing costs
(16,711
)
 

 

 

 
(16,711
)
Net cash provided by financing activities
32,171

 

 

 

 
32,171

Net increase in cash and cash equivalents
26,056

 
50

 

 

 
26,106

Cash and cash equivalents at beginning of period
1,513

 
1,067

 

 

 
2,580

Cash and cash equivalents at end of period
$
27,569

 
1,117

 

 

 
28,686