Quarterly report pursuant to Section 13 or 15(d)

Consolidating Guarantor Financial Information (Tables)

v3.7.0.1
Consolidating Guarantor Financial Information (Tables)
6 Months Ended
Jun. 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 June 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,636

 
1,191

 

 

 
2,827

Trade receivables, net
12,291

 
540

 

 

 
12,831

Prepaid and other current assets
63,096

 
1,930

 

 
(57,310
)
 
7,716

Total current assets
77,023

 
3,661

 

 
(57,310
)
 
23,374

 
 
 
 
 
 
 
 
 
 
Investment in subsidiaries
12,337

 

 

 
(12,337
)
 

Property and equipment, net
27,048

 
1,951

 

 

 
28,999

Subscriber accounts, net
1,322,397

 
37,324

 

 

 
1,359,721

Dealer network and other intangible assets, net
10,912

 
997

 

 

 
11,909

Goodwill
527,191

 
36,358

 

 

 
563,549

Other assets, net
7,218

 
26

 

 

 
7,244

Total assets
$
1,984,126

 
80,317

 

 
(69,647
)
 
1,994,796

 
 
 
 
 
 
 
 
 
 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
8,356

 
1,804

 

 

 
10,160

Accrued payroll and related liabilities
3,097

 
548

 

 

 
3,645

Other accrued liabilities
53,987

 
57,910

 

 
(57,310
)
 
54,587

Deferred revenue
13,881

 
1,425

 

 

 
15,306

Holdback liability
10,688

 
516

 

 

 
11,204

Current portion of long-term debt
11,000

 

 

 

 
11,000

Total current liabilities
101,009

 
62,203

 

 
(57,310
)
 
105,902

 
 
 
 
 
 
 
 
 
 
Non-current liabilities:
 
 
 
 
 
 
 
 
 
Long-term debt
1,704,322

 

 

 

 
1,704,322

Long-term holdback liability
2,251

 

 

 

 
2,251

Derivative financial instruments
15,624

 

 

 

 
15,624

Deferred income tax liability, net
17,312

 
2,123

 

 

 
19,435

Other liabilities
3,401

 
3,654

 

 

 
7,055

Total liabilities
1,843,919

 
67,980

 

 
(57,310
)
 
1,854,589

 
 
 
 
 
 
 
 
 
 
Total stockholder's equity
140,207

 
12,337

 

 
(12,337
)
 
140,207

Total liabilities and stockholder's equity
$
1,984,126

 
80,317

 

 
(69,647
)
 
1,994,796


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 June 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
132,223

 
8,275

 

 

 
140,498

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
25,956

 
3,661

 

 

 
29,617

Selling, general, and administrative, including stock-based compensation
53,453

 
7,109

 

 

 
60,562

Radio conversion costs
72

 
5

 

 

 
77

Amortization of subscriber accounts, dealer network and other intangible assets
58,373

 
1,592

 

 

 
59,965

Depreciation
1,960

 
165

 

 

 
2,125

 
139,814

 
12,532

 

 

 
152,346

Operating loss
(7,591
)
 
(4,257
)
 

 

 
(11,848
)
Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
4,515

 

 

 
(4,515
)
 

Interest expense
36,477

 

 

 

 
36,477

 
40,992

 

 

 
(4,515
)
 
36,477

Loss before income taxes
(48,583
)
 
(4,257
)
 

 
4,515

 
(48,325
)
Income tax expense
1,521

 
258

 

 

 
1,779

Net loss
(50,104
)
 
(4,515
)
 

 
4,515

 
(50,104
)
Other comprehensive loss:
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(5,777
)
 

 

 

 
(5,777
)
Total other comprehensive loss
(5,777
)
 

 

 

 
(5,777
)
Comprehensive loss
$
(55,881
)
 
(4,515
)
 

 
4,515

 
(55,881
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Three Months Ended June 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
137,212

 
6,444

 

 

 
143,656

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 
 
 
 
 
 
 
 
0

Cost of services
24,504

 
3,133

 

 

 
27,637

Selling, general, and administrative, including stock-based compensation
22,857

 
6,346

 

 

 
29,203

Radio conversion costs
7,542

 
54

 

 

 
7,596

Amortization of subscriber accounts, dealer network and other intangible assets
60,482

 
1,455

 

 

 
61,937

Depreciation
1,939

 
86

 

 

 
2,025

 
117,324

 
11,074

 

 

 
128,398

Operating income (loss)
19,888

 
(4,630
)
 

 

 
15,258

Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
4,860

 

 

 
(4,860
)
 

Interest expense
30,019

 
5

 

 

 
30,024

 
34,879

 
5

 

 
(4,860
)
 
30,024

Loss before income taxes
(14,991
)
 
(4,635
)
 

 
4,860

 
(14,766
)
Income tax expense
1,518

 
225

 

 

 
1,743

Net loss
(16,509
)
 
(4,860
)
 

 
4,860

 
(16,509
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
(4,697
)
 

 

 

 
(4,697
)
Total other comprehensive loss
(4,697
)
 

 

 

 
(4,697
)
Comprehensive loss
$
(21,206
)
 
(4,860
)
 

 
4,860

 
(21,206
)







MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
Six Months Ended June 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
265,341

 
16,357

 

 

 
281,698

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 

 
 

 
 

 
 

 
0

Cost of services
52,263

 
7,323

 

 

 
59,586

Selling, general, and administrative, including stock-based compensation
78,170

 
15,115

 

 

 
93,285

Radio conversion costs
259

 
50

 

 

 
309

Amortization of subscriber accounts, dealer network and other intangible assets
116,276

 
3,236

 

 

 
119,512

Depreciation
3,936

 
309

 

 

 
4,245

 
250,904

 
26,033

 

 

 
276,937

Operating income (loss)
14,437

 
(9,676
)
 

 

 
4,761

Other expense:
 

 
 

 
 

 
 

 
 

Equity in loss of subsidiaries
10,197

 

 

 
(10,197
)
 

Interest expense
72,310

 
5

 

 

 
72,315

 
82,507

 
5

 

 
(10,197
)
 
72,315

Loss before income taxes
(68,070
)
 
(9,681
)
 

 
10,197

 
(67,554
)
Income tax expense
3,047

 
516

 

 

 
3,563

Net loss
(71,117
)
 
(10,197
)
 

 
10,197

 
(71,117
)
Other comprehensive loss:
 

 
 

 
 

 
 

 
 

Unrealized loss on derivative contracts
(4,728
)
 

 

 

 
(4,728
)
Total other comprehensive loss
(4,728
)
 

 

 

 
(4,728
)
Comprehensive loss
$
(75,845
)
 
(10,197
)
 

 
10,197

 
(75,845
)


MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
(unaudited)
 
 
Six Months Ended June 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net revenue
$
274,519

 
12,405

 

 

 
286,924

 
 
 
 
 
 
 
 
 
0

Operating expenses:
 
 
 
 
 
 
 
 
0

Cost of services
50,746

 
6,366

 

 

 
57,112

Selling, general, and administrative, including stock-based compensation
45,388

 
12,428

 

 

 
57,816

Radio conversion costs
16,621

 
54

 

 

 
16,675

Amortization of subscriber accounts, dealer network and other intangible assets
120,310

 
2,949

 

 

 
123,259

Depreciation
3,849

 
151

 

 

 
4,000

 
236,914

 
21,948

 

 

 
258,862

Operating income (loss)
37,605

 
(9,543
)
 

 

 
28,062

Other expense:
 

 
 
 
 
 
 
 
 
Equity in loss of subsidiaries
10,001

 

 

 
(10,001
)
 

Interest expense
61,239

 
9

 

 

 
61,248

 
71,240

 
9

 

 
(10,001
)
 
61,248

Loss before income taxes
(33,635
)
 
(9,552
)
 

 
10,001

 
(33,186
)
Income tax expense
3,084

 
449

 

 

 
3,533

Net loss
(36,719
)
 
(10,001
)
 

 
10,001

 
(36,719
)
Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized loss on derivative contracts
(16,542
)
 

 

 

 
(16,542
)
Total other comprehensive loss
(16,542
)
 

 

 

 
(16,542
)
Comprehensive loss
$
(53,261
)
 
(10,001
)
 

 
10,001

 
(53,261
)
Condensed Consolidating Statement of Cash Flows
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
(unaudited)
 
 
Six Months Ended June 30, 2017
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
78,832

 
1,851

 

 

 
80,683

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(5,110
)
 
(642
)
 

 

 
(5,752
)
Cost of subscriber accounts acquired
(86,831
)
 
(1,456
)
 

 

 
(88,287
)
Net cash used in investing activities
(91,941
)
 
(2,098
)
 

 

 
(94,039
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
95,550

 

 

 

 
95,550

Payments on long-term debt
(82,350
)
 

 

 

 
(82,350
)
Value of shares withheld for share-based compensation
(194
)
 

 

 

 
(194
)
Net cash provided by financing activities
13,006

 

 

 

 
13,006

Net decrease in cash and cash equivalents
(103
)
 
(247
)
 

 

 
(350
)
Cash and cash equivalents at beginning of period
1,739

 
1,438

 

 

 
3,177

Cash and cash equivalents at end of period
$
1,636

 
1,191

 

 

 
2,827


 
Six Months Ended June 30, 2016
 
Parent Issuer
 
Subsidiary
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
 
(amounts in thousands)
Net cash provided by operating activities
$
86,664

 
4,320

 

 

 
90,984

Investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures
(2,408
)
 
(692
)
 

 

 
(3,100
)
Cost of subscriber accounts acquired
(103,046
)
 
(3,759
)
 

 

 
(106,805
)
Increase in restricted cash
55

 

 

 

 
55

Net cash used in investing activities
(105,399
)
 
(4,451
)
 

 

 
(109,850
)
Financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt
88,200

 

 
 
 

 
88,200

Payments on long-term debt
(69,700
)
 

 

 

 
(69,700
)
Value of shares withheld for share-based compensation
(83
)
 

 

 

 
(83
)
Net cash provided by financing activities
18,417

 

 

 

 
18,417

Net decrease in cash and cash equivalents
(318
)
 
(131
)
 

 

 
(449
)
Cash and cash equivalents at beginning of period
1,513

 
1,067

 

 

 
2,580

Cash and cash equivalents at end of period
$
1,195

 
936

 

 

 
2,131