Quarterly report pursuant to Section 13 or 15(d)

Reportable Business Segments

v3.8.0.1
Reportable Business Segments
9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Reportable Business Segments
Reportable Business Segments

Description of Segments

The Company operates through two reportable business segments according to the nature and economic characteristics of its services as well as the manner in which the information issued internally by the Company's key decision maker, who is the Company's Chief Executive Officer. The Company's business segments are as follows:

MONI

The MONI segment is engaged in the business of providing security alarm monitoring services: monitoring signals arising from burglaries, fires, medical alerts and other events through security systems at subscribers' premises, as well as providing customer service and technical support. MONI primarily outsources the sales, installation and most of its field service functions to its dealers.
    
LiveWatch

LiveWatch is a Do-It-Yourself home security provider offering professionally monitored security services through a direct-to-consumer sales channel. LiveWatch offers a differentiated go-to-market strategy through direct response TV, internet and radio advertising. When a customer initiates the process to obtain monitoring services, LiveWatch pre-configures the alarm monitoring system based on customer specifications. LiveWatch then packages and ships the equipment directly to the customer. The customer self-installs the equipment on-site and activates the monitoring service over the phone.

As they arise, transactions between segments are recorded on an arm's length basis using relevant market prices. The following table sets forth selected data from the accompanying condensed consolidated statements of operations for the periods indicated (amounts in thousands):
 
 
MONI
 
LiveWatch
 
Consolidated
 
 
Three Months Ended September 30, 2017
Net revenue
 
$
130,963

 
$
7,248

 
$
138,211

Depreciation and amortization
 
$
60,390

 
$
1,164

 
$
61,554

Net loss before income taxes
 
$
(17,943
)
 
$
(5,826
)
 
$
(23,769
)
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
Net revenue
 
$
136,910

 
$
5,855

 
$
142,765

Depreciation and amortization
 
$
63,117

 
$
1,123

 
$
64,240

Net loss before income taxes
 
$
(15,238
)
 
$
(5,835
)
 
$
(21,073
)
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
Net revenue
 
$
398,907

 
$
21,002

 
$
419,909

Depreciation and amortization
 
$
181,873

 
$
3,438

 
$
185,311

Net loss before income taxes
 
$
(74,722
)
 
$
(16,601
)
 
$
(91,323
)
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
Net revenue
 
$
413,180

 
$
16,509

 
$
429,689

Depreciation and amortization
 
$
188,146

 
$
3,353

 
$
191,499

Net loss before income taxes
 
$
(38,092
)
 
$
(16,167
)
 
$
(54,259
)


The following table sets forth selected data from the accompanying condensed consolidated balance sheets for the periods indicated (amounts in thousands):
 
 
MONI
 
LiveWatch
 
Eliminations
 
Consolidated
 
 
Balance at September 30, 2017
Subscriber accounts, net of amortization
 
$
1,312,214

 
$
21,413

 
$

 
$
1,333,627

Goodwill
 
$
527,502

 
$
36,047

 
$

 
$
563,549

Total assets
 
$
2,044,106

 
$
62,830

 
$
(112,288
)
 
$
1,994,648

 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
Subscriber accounts, net of amortization
 
$
1,364,804

 
$
21,956

 
$

 
$
1,386,760

Goodwill
 
$
527,502

 
$
36,047

 
$

 
$
563,549

Total assets
 
$
2,062,838

 
$
63,916

 
$
(93,037
)
 
$
2,033,717