Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.5.0.2
Consolidating Guarantor Financial Information (Tables)
9 Months Ended
Sep. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheet
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of September 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
27,569

 
1,117

 

 

 
28,686

Trade receivables, net
13,119

 
554

 

 

 
13,673

Prepaid and other current assets
46,037

 
2,913

 

 
(39,316
)
 
9,634

Total current assets
86,725

 
4,584

 

 
(39,316
)
 
51,993

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
28,376

 

 

 
(28,376
)
 

Property and equipment, net
24,669

 
1,490

 

 

 
26,159

Subscriber accounts, net
1,367,864

 
37,200

 

 

 
1,405,064

Dealer network and other intangible assets, net
18,188

 
1,094

 

 

 
19,282

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
3,555

 
18

 

 

 
3,573

Total assets
$
2,056,568

 
80,744

 

 
(67,692
)
 
2,069,620

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
7,637

 
1,629

 

 

 
9,266

Accrued payroll and related liabilities
4,624

 
549

 

 

 
5,173

Other accrued liabilities
39,923

 
44,201

 

 
(39,316
)
 
44,808

Deferred revenue
14,290

 
1,264

 

 

 
15,554

Holdback liability
14,458

 
547

 

 

 
15,005

Current portion of long-term debt
11,000

 

 

 

 
11,000

Total current liabilities
91,932

 
48,190

 

 
(39,316
)
 
100,806

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,692,587

 

 

 

 
1,692,587

Long-term holdback liability
2,955

 

 

 

 
2,955

Derivative financial instruments
32,511

 

 

 

 
32,511

Deferred income tax liability, net
14,884

 
1,465

 

 

 
16,349

Other liabilities
9,474

 
2,713

 

 

 
12,187

Total liabilities
1,844,343

 
52,368

 

 
(39,316
)
 
1,857,395

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
212,225

 
28,376

 

 
(28,376
)
 
212,225

Total liabilities and stockholder's equity
$
2,056,568

 
80,744

 

 
(67,692
)
 
2,069,620


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheet
(unaudited)
 
 
As of December 31, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
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 liability
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
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) income before income taxes
(21,376
)
 
(5,241
)
 

 
5,544

 
(21,073
)
Income tax expense
1,626

 
303

 

 

 
1,929

Net (loss) income
(23,002
)
 
(5,544
)
 

 
5,544

 
(23,002
)
Other comprehensive income (loss):
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(2,459
)
 

 

 

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

 

 

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

 
5,544

 
(25,461
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended September 30, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
136,872

 
4,974

 

 

 
141,846

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 
 
 
 
 
 
 
 
0

Cost of services
25,144

 
3,101

 

 

 
28,245

Selling, general, and administrative, including stock-based compensation
22,079

 
5,858

 

 

 
27,937

Radio conversion costs
3,570

 

 

 

 
3,570

Amortization of subscriber accounts, dealer network and other intangible assets
65,548

 
1,410

 

 

 
66,958

Depreciation
2,684

 
33

 

 

 
2,717

Gain on disposal of operating assets
(1
)
 

 

 

 
(1
)
 
119,024

 
10,402

 

 

 
129,426

Operating income (loss)
17,848

 
(5,428
)
 

 

 
12,420

Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
5,638

 

 

 
(5,638
)
 

Interest expense
31,849

 
4

 

 

 
31,853

Refinancing expense

 

 

 

 

 
37,487

 
4

 

 
(5,638
)
 
31,853

(Loss) income before income taxes
(19,639
)
 
(5,432
)
 

 
5,638

 
(19,433
)
Income tax expense
1,775

 
206

 

 

 
1,981

Net (loss) income
(21,414
)
 
(5,638
)
 

 
5,638

 
(21,414
)
Other comprehensive income:
 
 
 
 
 
 
 
 
 
Unrealized gain on derivative contracts
(8,946
)
 

 

 

 
(8,946
)
Total other comprehensive income
(8,946
)
 

 

 

 
(8,946
)
Comprehensive (loss) income
$
(30,360
)
 
(5,638
)
 

 
5,638

 
(30,360
)


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
Net revenue
 
$
410,229

 
19,460

 

 

 
429,689

 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
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

Gain on disposal of operating assets
 

 

 

 

 

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

 
15,545

 
(54,259
)
Income tax expense
 
4,710

 
752

 

 

 
5,462

Net (loss) income
 
(59,721
)
 
(15,545
)
 

 
15,545

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

 

 

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

 

 

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

 
15,545

 
(78,722
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Nine Months Ended September 30, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
410,523

 
11,282

 

 

 
421,805

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 
 
 
 
 
 
 
 
0

Cost of services
74,268

 
6,747

 

 

 
81,015

Selling, general, and administrative, including stock-based compensation
64,209

 
12,849

 

 

 
77,058

Radio conversion costs
4,543

 

 

 

 
4,543

Amortization of subscriber accounts, dealer network and other intangible assets
190,289

 
3,336

 

 

 
193,625

Depreciation
7,438

 
60

 

 

 
7,498

Gain on disposal of operating assets
(4
)
 

 

 

 
(4
)
 
340,743

 
22,992

 

 

 
363,735

Operating income (loss)
69,780

 
(11,710
)
 

 

 
58,070

Other expense:
 
 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
12,341

 

 

 
(12,341
)
 

Interest expense
93,367

 
17

 

 

 
93,384

Refinancing expense
4,468

 

 

 

 
4,468

 
110,176

 
17

 

 
(12,341
)
 
97,852

(Loss) income before income taxes
(40,396
)
 
(11,727
)
 

 
12,341

 
(39,782
)
Income tax expense
5,339

 
614

 

 

 
5,953

Net (loss) income
(45,735
)
 
(12,341
)
 

 
12,341

 
(45,735
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
(12,407
)
 

 

 

 
(12,407
)
Total other comprehensive loss
(12,407
)
 

 

 

 
(12,407
)
Comprehensive (loss) income
$
(58,142
)
 
(12,341
)
 

 
12,341

 
(58,142
)

Condensed Cash Flow Statement
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Nine Months Ended September 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
151,350

 
7,609

 

 

 
158,959

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
)
Payments of financing costs
(16,711
)
 

 

 

 
(16,711
)
Net cash provided by financing activities
32,280

 

 

 

 
32,280

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


 
Nine Months Ended September 30, 2015
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
171,688

 
1,549

 

 

 
173,237

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(9,695
)
 
(339
)
 

 

 
(10,034
)
Cost of subscriber accounts acquired
(200,044
)
 
(5,006
)
 

 

 
(205,050
)
Cash acquired (paid) on acquisition
(61,550
)
 
4,772

 
 
 
 
 
(56,778
)
Increase in restricted cash
(42
)
 

 

 

 
(42
)
Proceeds from disposal of operating assets
4

 

 

 
 
 
4

Net cash used in investing activities
(271,327
)
 
(573
)
 

 

 
(271,900
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
749,550

 

 
 
 

 
749,550

Payments on long-term debt
(640,465
)
 

 

 

 
(640,465
)
Payments of financing costs
(6,477
)
 

 

 

 
(6,477
)
Contribution from Ascent Capital
22,690

 

 

 

 
22,690

Net cash provided by financing activities
125,298

 

 

 

 
125,298

Net increase in cash and cash equivalents
25,659

 
976

 

 

 
26,635

Cash and cash equivalents at beginning of period
1,713

 
240

 

 

 
1,953

Cash and cash equivalents at end of period
$
27,372

 
1,216

 

 

 
28,588