Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.19.2
Consolidating Guarantor Financial Information (Tables)
6 Months Ended
Jun. 30, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of June 30, 2019
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
11,282

 
213

 

 

 
11,495

Restricted cash
93

 

 

 

 
93

Trade receivables, net
12,413

 
132

 

 

 
12,545

Prepaid and other current assets
63,977

 

 

 
(35,751
)
 
28,226

Total current assets
87,765

 
345

 

 
(35,751
)
 
52,359

 
 
 
 
 
 
 
 
 
 
Property and equipment, net
36,940

 

 

 

 
36,940

Subscriber accounts and deferred contract acquisition costs, net
1,147,972

 
13,500

 

 

 
1,161,472

Deferred income tax asset, net
783

 

 

 

 
783

Operating lease right-of-use asset
19,521

 

 

 

 
19,521

Other assets, net
18,649

 

 

 

 
18,649

Total assets
$
1,311,630

 
13,845

 

 
(35,751
)
 
1,289,724

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Deficit
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$

 

 

 

 

Other accrued liabilities
3,795

 

 

 

 
3,795

Deferred revenue

 

 

 

 

Holdback liability

 

 

 

 

Current portion of long-term debt
181,400

 

 

 

 
181,400

Total current liabilities not subject to compromise
185,195

 

 

 

 
185,195

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term holdback liability

 

 

 

 

Derivative financial instruments

 

 

 

 

Operating lease liabilities
16,317

 

 

 

 
16,317

Other liabilities
22,166

 

 

 
(22,166
)
 

Total liabilities not subject to compromise
223,678

 

 

 
(22,166
)
 
201,512

Liabilities subject to compromise
1,766,816

 
36,011

 

 
(35,751
)
 
1,767,076

Total liabilities
1,990,494

 
36,011

 

 
(57,917
)
 
1,968,588

 
 
 
 
 
 
 
 
 
 
Total stockholder's deficit
(678,864
)
 
(22,166
)
 

 
22,166

 
(678,864
)
Total liabilities and stockholder's deficit
$
1,311,630

 
13,845

 

 
(35,751
)
 
1,289,724


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of December 31, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,697

 
491

 

 

 
2,188

Restricted cash
189

 

 

 

 
189

Trade receivables, net
12,362

 
759

 

 

 
13,121

Prepaid and other current assets
118,119

 
4,042

 

 
(93,983
)
 
28,178

Total current assets
132,367

 
5,292

 

 
(93,983
)
 
43,676

 
 
 
 
 
 
 
 
 
 
Property and equipment, net
34,960

 
1,579

 

 

 
36,539

Subscriber accounts and deferred contract acquisition costs, net
1,160,698

 
34,765

 

 

 
1,195,463

Deferred income tax asset, net
783

 

 

 

 
783

Other assets, net
29,270

 
37

 

 

 
29,307

Total assets
$
1,358,078

 
41,673

 

 
(93,983
)
 
1,305,768

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Deficit
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
11,110

 
989

 

 

 
12,099

Other accrued liabilities
29,016

 
96,052

 

 
(93,983
)
 
31,085

Deferred revenue
11,357

 
1,703

 

 

 
13,060

Holdback liability
11,342

 
171

 

 

 
11,513

Current portion of long-term debt
1,816,450

 

 

 

 
1,816,450

Total current liabilities not subject to compromise
1,879,275

 
98,915

 

 
(93,983
)
 
1,884,207

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term holdback liability
1,770

 

 

 

 
1,770

Derivative financial instruments
6,039

 

 

 

 
6,039

Other liabilities
59,969

 

 

 
(57,242
)
 
2,727

Total liabilities not subject to compromise
1,947,053

 
98,915

 

 
(151,225
)
 
1,894,743

Liabilities subject to compromise

 

 

 

 

Total liabilities
1,947,053

 
98,915

 

 
(151,225
)
 
1,894,743

 
 
 
 
 
 
 
 
 
 
Total stockholder's deficit
(588,975
)
 
(57,242
)
 

 
57,242

 
(588,975
)
Total liabilities and stockholder's deficit
$
1,358,078

 
41,673

 

 
(93,983
)
 
1,305,768

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)

 
Three Months Ended June 30, 2019
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
126,784

 
1,307

 

 

 
128,091

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 
Cost of services
28,496

 
40

 

 

 
28,536

Selling, general, and administrative, including stock-based compensation
28,051

 
112

 

 

 
28,163

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
48,567

 
571

 

 

 
49,138

Depreciation
3,121

 

 

 

 
3,121

 
108,235

 
723

 

 

 
108,958

Operating income
18,549

 
584

 

 

 
19,133

Other expense (income):
 

 
 

 
 

 
 

 
 

Equity in income of subsidiaries
(584
)
 

 

 
584

 

Restructuring and reorganization items
33,102

 

 

 

 
33,102

Interest expense
40,536

 

 

 

 
40,536

Realized loss on derivative financial instruments
(969
)
 

 

 

 
(969
)
Refinancing expense

 

 

 

 

 
72,085

 

 

 
584

 
72,669

Income (loss) before income taxes
(53,536
)
 
584

 

 
(584
)
 
(53,536
)
Income tax expense
666

 

 

 

 
666

Net income (loss)
(54,202
)
 
584

 

 
(584
)
 
(54,202
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(472
)
 

 

 

 
(472
)
Total other comprehensive loss
(472
)
 

 

 

 
(472
)
Comprehensive income (loss)
$
(54,674
)
 
584

 

 
(584
)
 
(54,674
)
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)

 
Three Months Ended June 30, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
124,126

 
10,887

 

 

 
135,013

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 
Cost of services
27,865

 
5,182

 

 

 
33,047

Selling, general, and administrative, including stock-based compensation
22,616

 
10,039

 

 

 
32,655

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
52,091

 
1,800

 

 

 
53,891

Depreciation
2,622

 
243

 

 

 
2,865

Loss on goodwill impairment
214,089

 
311

 

 

 
214,400

 
319,283

 
17,575

 

 

 
336,858

Operating loss
(195,157
)
 
(6,688
)
 

 

 
(201,845
)
Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
6,870

 

 

 
(6,870
)
 

Interest expense
38,600

 

 

 

 
38,600

 
45,470

 

 

 
(6,870
)
 
38,600

Loss before income taxes
(240,627
)
 
(6,688
)
 

 
6,870

 
(240,445
)
Income tax expense
1,165

 
182

 

 

 
1,347

Net loss
(241,792
)
 
(6,870
)
 

 
6,870

 
(241,792
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized gain on derivative contracts
5,521

 

 

 

 
5,521

Total other comprehensive income
5,521

 

 

 

 
5,521

Comprehensive loss
$
(236,271
)
 
(6,870
)
 

 
6,870

 
(236,271
)
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)

 
Six Months Ended June 30, 2019
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
255,044

 
2,653

 

 

 
257,697

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 

 
 

 
 

 
 

 
 
Cost of services
55,179

 
121

 

 

 
55,300

Selling, general, and administrative, including stock-based compensation
59,215

 
170

 

 

 
59,385

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
97,139

 
1,144

 

 

 
98,283

Depreciation
6,275

 

 

 

 
6,275

 
217,808

 
1,435

 

 

 
219,243

Operating income
37,236

 
1,218

 

 

 
38,454

Other expense (income):
 

 
 

 
 

 
 

 
 

Equity in income of subsidiaries
(1,218
)
 

 

 
1,218

 

Restructuring and reorganization items
33,102

 

 

 

 
33,102

Interest expense
77,969

 

 

 

 
77,969

Realized and unrealized loss on derivative financial instruments
6,804

 

 

 

 
6,804

Refinancing expense
5,214

 

 

 

 
5,214

 
121,871

 

 

 
1,218

 
123,089

Income (loss) before income taxes
(84,635
)
 
1,218

 

 
(1,218
)
 
(84,635
)
Income tax expense
1,337

 

 

 

 
1,337

Net income (loss)
(85,972
)
 
1,218

 

 
(1,218
)
 
(85,972
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(940
)
 

 

 

 
(940
)
Total other comprehensive loss
(940
)
 

 

 

 
(940
)
Comprehensive income (loss)
$
(86,912
)
 
1,218

 

 
(1,218
)
 
(86,912
)

MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)

 
Six Months Ended June 30, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
248,421

 
20,345

 

 

 
268,766

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Cost of services
56,164

 
9,584

 

 

 
65,748

Selling, general, and administrative, including stock-based compensation
45,419

 
19,250

 

 

 
64,669

Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets
104,328

 
3,974

 

 

 
108,302

Depreciation
5,007

 
473

 

 

 
5,480

Loss on goodwill impairment
214,089

 
311

 

 

 
214,400

 
425,007

 
33,592

 

 

 
458,599

Operating loss
(176,586
)
 
(13,247
)
 

 

 
(189,833
)
Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
13,610

 

 

 
(13,610
)
 

Interest expense
75,473

 

 

 

 
75,473

 
89,083

 

 

 
(13,610
)
 
75,473

Loss before income taxes
(265,669
)
 
(13,247
)
 

 
13,610

 
(265,306
)
Income tax expense
2,330

 
363

 

 

 
2,693

Net loss
(267,999
)
 
(13,610
)
 

 
13,610

 
(267,999
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Unrealized gain on derivative contracts
19,927

 

 

 

 
19,927

Total other comprehensive income
19,927

 

 

 

 
19,927

Comprehensive loss
$
(248,072
)
 
(13,610
)
 

 
13,610

 
(248,072
)
Condensed Consolidating Statement of Cash Flows
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Six Months Ended June 30, 2019
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
100,126

 
246

 

 

 
100,372

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(6,767
)
 

 

 

 
(6,767
)
Cost of subscriber accounts acquired
(60,811
)
 
(524
)
 

 

 
(61,335
)
Net cash used in investing activities
(67,578
)
 
(524
)
 

 

 
(68,102
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
43,100

 

 

 

 
43,100

Payments on long-term debt
(18,400
)
 

 

 

 
(18,400
)
Payments of restructuring and reorganization costs
(35,352
)
 

 

 

 
(35,352
)
Payments of refinancing costs
(7,404
)
 

 

 

 
(7,404
)
Value of shares withheld for share-based compensation
(3
)
 

 

 

 
(3
)
Dividend to Ascent Capital
(5,000
)
 

 

 

 
(5,000
)
Net cash used in financing activities
(23,059
)
 

 

 

 
(23,059
)
Net increase (decrease) in cash, cash equivalents and restricted cash
9,489

 
(278
)
 

 

 
9,211

Cash, cash equivalents and restricted cash at beginning of period
1,886

 
491

 

 

 
2,377

Cash, cash equivalents and restricted cash at end of period
$
11,375

 
213

 

 

 
11,588


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
(Debtor-In-Possession)
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Six Months Ended June 30, 2018
 
Parent Issuer
 
Subsidiary Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
66,082

 
1,415

 

 

 
67,497

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(8,449
)
 
(479
)
 

 

 
(8,928
)
Cost of subscriber accounts acquired
(68,983
)
 
(712
)
 

 

 
(69,695
)
Net cash used in investing activities
(77,432
)
 
(1,191
)
 

 

 
(78,623
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
105,300

 

 

 

 
105,300

Payments on long-term debt
(95,200
)
 

 

 

 
(95,200
)
Value of shares withheld for share-based compensation
(69
)
 

 

 

 
(69
)
Net cash provided by financing activities
10,031

 

 

 

 
10,031

Net increase (decrease) in cash, cash equivalents and restricted cash
(1,319
)
 
224

 

 

 
(1,095
)
Cash, cash equivalents and restricted cash at beginning of period
2,705

 
597

 

 

 
3,302

Cash, cash equivalents and restricted cash at end of period
$
1,386

 
821

 

 

 
2,207