Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 12-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | MONITRONICS INTERNATIONAL INC | |
Entity Central Index Key | 1265107 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $25,430 | $1,953 |
Restricted cash | 123 | 18 |
Trade receivables, net of allowance for doubtful accounts of $2,296 in 2015 and $2,120 in 2014 | 13,959 | 13,796 |
Deferred income tax assets, net | 6,567 | 6,567 |
Prepaid and other current assets | 9,046 | 7,559 |
Total current assets | 55,125 | 29,893 |
Property and equipment, net of accumulated depreciation of $26,551 in 2015 and $24,254 in 2014 | 24,073 | 23,280 |
Subscriber accounts, net of accumulated amortization of $794,883 in 2015 and $736,824 in 2014 | 1,399,520 | 1,373,630 |
Dealer network and other intangible assets, net of accumulated amortization of $59,052 in 2015 and $54,077 in 2014 | 41,181 | 44,855 |
Goodwill | 563,011 | 527,502 |
Other assets, net | 23,805 | 25,487 |
Total assets | 2,106,715 | 2,024,647 |
Current liabilities: | ||
Accounts payable | 5,291 | 6,710 |
Accrued payroll and related liabilities | 3,035 | 3,604 |
Other accrued liabilities | 43,199 | 31,094 |
Deferred revenue | 15,981 | 14,945 |
Holdback liability | 17,668 | 19,046 |
Current portion of long-term debt | 9,166 | 9,166 |
Total current liabilities | 94,340 | 84,565 |
Non-current liabilities: | ||
Long-term debt | 1,698,333 | 1,640,542 |
Long-term holdback liability | 4,816 | 5,156 |
Derivative financial instruments | 9,447 | 5,780 |
Deferred income tax liability, net | 16,800 | 15,771 |
Other liabilities | 15,122 | 15,267 |
Total liabilities | 1,838,858 | 1,767,081 |
Commitments and contingencies | ||
Stockholder's equity: | ||
Common stock, $.01 par value. 1,000 shares authorized, issued and outstanding both at March 31, 2015 and December 31, 2014 | 0 | 0 |
Additional paid-in capital | 359,628 | 336,540 |
Accumulated deficit | -82,503 | -74,169 |
Accumulated other comprehensive income (loss) | -9,268 | -4,805 |
Total stockholder's equity | 267,857 | 257,566 |
Total liabilities and stockholder's equity | $2,106,715 | $2,024,647 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts (in dollars) | $2,296 | $2,120 |
Property and equipment, accumulated depreciation (in dollars) | 26,551 | 24,254 |
Subscriber accounts, accumulated amortization (in dollars) | 794,883 | 736,824 |
Dealer network and other intangible assets, accumulated amortization (in dollars) | $59,052 | $54,077 |
Par value of shares issued as a consideration (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 1,000 | 1,000 |
Common stock, issued shares | 1,000 | 1,000 |
Common stock, outstanding shares | 1,000 | 1,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net revenue | $138,416 | $132,864 |
Operating expenses: | ||
Cost of services | 25,690 | 22,090 |
Selling, general, and administrative, including stock-based compensation | 23,424 | 22,972 |
Amortization of subscriber accounts, dealer network and other intangible assets | 63,141 | 61,780 |
Depreciation | 2,297 | 2,383 |
Restructuring charges | 0 | 547 |
Gain on disposal of operating assets | -3 | 0 |
Total operating expenses | 114,549 | 109,772 |
Operating income | 23,867 | 23,092 |
Other expense: | ||
Interest expense | 30,240 | 29,344 |
Total other expense | 30,240 | 29,344 |
Loss before income taxes | -6,373 | -6,252 |
Income tax expense | 1,961 | 1,599 |
Net loss | -8,334 | -7,851 |
Other comprehensive loss: | ||
Unrealized loss on derivative contracts, net | -4,463 | -1,671 |
Total other comprehensive loss, net of tax | -4,463 | -1,671 |
Comprehensive loss | ($12,797) | ($9,522) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($8,334) | ($7,851) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Amortization of subscriber accounts, dealer network and other intangible assets | 63,141 | 61,780 |
Depreciation | 2,297 | 2,383 |
Stock-based compensation | 374 | 414 |
Deferred income tax expense | 1,021 | 877 |
Long-term debt amortization | 283 | 263 |
Gain on disposal of operating assets | -3 | 0 |
Other non-cash activity, net | 3,904 | 2,872 |
Changes in assets and liabilities: | ||
Trade receivables | -2,265 | -2,719 |
Prepaid expenses and other assets | -778 | -793 |
Payables and other liabilities | 4,416 | 9,985 |
Net cash provided by operating activities | 64,056 | 67,211 |
Cash flows from investing activities: | ||
Capital expenditures | -2,728 | -1,938 |
Cost of subscriber accounts acquired | -61,053 | -53,789 |
Cash paid for acquisition, net of cash acquired | -56,343 | 0 |
Increase in restricted cash | -105 | -79 |
Proceeds from the disposal of operating assets | 3 | 0 |
Other investing activities | 0 | -25 |
Net cash used in investing activities | -120,226 | -55,831 |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 91,400 | 42,900 |
Payments on long-term debt | -33,892 | -27,192 |
Payments of financing costs | -551 | 0 |
Contribution from Ascent Capital | 22,690 | 0 |
Net cash provided by financing activities | 79,647 | 15,708 |
Net increase in cash and cash equivalents | 23,477 | 27,088 |
Cash and cash equivalents at beginning of period | 1,953 | 4,355 |
Cash and cash equivalents at end of period | 25,430 | 31,443 |
Supplemental cash flow information: | ||
State taxes paid | 0 | 6 |
Interest paid | $17,554 | $11,963 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholder's Equity (USD $) | Total | Common Stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning Balance at Dec. 31, 2014 | $257,566 | $336,540 | ($4,805) | ($74,169) | |
Beginning Balance (in shares) at Dec. 31, 2014 | 1,000 | 1,000 | |||
Increase (Decrease) in Stockholder's Equity | |||||
Net loss | -8,334 | -8,334 | |||
Other comprehensive loss | -4,463 | -4,463 | |||
Stock-based compensation | 519 | 519 | |||
Value of shares withheld for tax liability | -121 | -121 | |||
Contribution from Ascent Capital | 22,690 | 22,690 | |||
Ending Balance at Mar. 31, 2015 | $267,857 | $359,628 | ($9,268) | ($82,503) | |
Ending Balance (in shares) at Mar. 31, 2015 | 1,000 | 1,000 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Monitronics International, Inc. and its subsidiaries (collectively, the “Company” or “Monitronics”) are wholly owned subsidiaries of Ascent Capital Group, Inc. (“Ascent Capital”). On February 23, 2015, the Company acquired LiveWatch Security, LLC ("LiveWatch"), a Do-It-Yourself home security firm, offering professionally monitored security services through a direct-to-consumer sales channel (the "LiveWatch Acquisition"). On August 16, 2013, the Company acquired all of the equity interest of Security Networks LLC ("Security Networks") and certain affiliated entities (the "Security Networks Acquisition"). The Company provides security alarm monitoring and related services to residential and business subscribers throughout the United States and parts of Canada. The Company monitors signals arising from burglaries, fires, medical alerts and other events through security systems at subscribers’ premises, as well as provides customer service and technical support. | |
The unaudited interim financial information of the Company has been prepared in accordance with Article 10 of the Securities and Exchange Commission’s (the “SEC”) Regulation S-X. Accordingly, it does not include all of the information required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. The Company’s unaudited condensed consolidated financial statements as of March 31, 2015, and for the three months ended March 31, 2015 and 2014, include Monitronics and all of its direct and indirect subsidiaries. The accompanying interim condensed consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the Monitronics Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 6, 2015 (the “2014 Form 10-K”). | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of revenue and expenses for each reporting period. The significant estimates made in preparation of the Company’s condensed consolidated financial statements primarily relate to valuation of goodwill, other intangible assets, long-lived assets, deferred tax assets, derivative financial instruments, and the amount of the allowance for doubtful accounts. These estimates are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts them when facts and circumstances change. As the effects of future events cannot be determined with any certainty, actual results could differ from the estimates upon which the carrying values were based. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2015, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, Interest - Imputation of Interest (Subtopic 835-30). Under this update, the cost of issuing debt will no longer be recorded as a separate asset, unless it is incurred before the receipt of the funding from the associated debt liability. Instead, debt issuance costs will be presented as a direct deduction from the debt liability, similar to the presentation of debt discounts. The costs will continue to be amortized to interest expense using the effective interest rate method. The ASU requires retrospective application to all prior periods presented in the financial statements and is effective for annual and interim periods beginning after December 15, 2015. The Company does not expect the impact of adopting this ASU to be material to the Company's financial position, results of operations or cash flows. | |
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under the update, revenue will be recognized based on a five-step model. The core principle of the model is that revenue will be recognized when the transfer of promised goods or services to customers is made in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB held meetings in February and March 2015 and agreed to propose amendments to this new standard and, in addition, plans to consider whether to defer the effective date of the standard. Absent a deferral of the effective date, the ASU will become effective for annual and interim periods beginning after December 15, 2016. The Company is currently evaluating the impact that adopting this ASU will have on its financial position, results of operations and cash flows. |
LiveWatch_Acquisition
LiveWatch Acquisition | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
LiveWatch Acquisition | Acquisition | |||
On February 23, 2015 (the "Closing Date"), the Company acquired LiveWatch for a purchase price of approximately $61,115,000 (the "LiveWatch Purchase Price"). The LiveWatch Purchase Price includes approximately $3,988,000 of cash transferred directly to LiveWatch to fund transaction bonuses payable to LiveWatch employees as of the Closing Date. This cash is not included in the fair value of consideration transferred for the LiveWatch Acquisition. | ||||
The LiveWatch Acquisition was funded by borrowings from the Company's revolving credit facility, as well as cash contributions from Ascent Capital. | ||||
In connection with the LiveWatch Acquisition, the Company entered into employment agreements with certain key members of the LiveWatch management team which provide for retention bonuses of $6,000,000 (the "LiveWatch Retention Bonuses") to be paid on the second anniversary of the Closing Date, and performance based bonus arrangements payable on the fourth anniversary of the Closing Date, assuming certain performance metrics are met by LiveWatch during the first four years following the Closing Date (the "LiveWatch Performance Bonuses"). As of March 31, 2015, the LiveWatch Performance Bonuses are estimated to yield an aggregate payout of approximately $8,500,000. The LiveWatch Retention Bonuses and LiveWatch Performance Bonuses (together, the "LiveWatch Acquisition Contingent Bonuses") are contingent upon the continued employment of the key members of the LiveWatch management team. As such, the LiveWatch Acquisition Contingent Bonuses are expensed ratably over the service period based on the estimated value of the payouts. For the three months ended March 31, 2015, the Company recognized $519,000 related to the LiveWatch Acquisition Contingent Bonuses, which are included in Selling, general and administrative expense in the condensed consolidated statements of operations and comprehensive income (loss). | ||||
The LiveWatch Acquisition was accounted for as a business combination utilizing the acquisition method in accordance with FASB Accounting Standards Codification Topic 805, Business Combinations. Under the acquisition method of accounting, the fair value of the consideration transferred has been allocated to LiveWatch's tangible and identifiable intangible assets acquired and liabilities assumed based on their preliminary estimates of fair value as follows (amounts in thousands): | ||||
Cash | $ | 784 | ||
Trade receivables | 273 | |||
Other current assets | 599 | |||
Property and equipment | 362 | |||
Subscriber accounts | 24,900 | |||
Other intangible asset | 1,300 | |||
Goodwill | 35,509 | |||
Current liabilities | (6,600 | ) | ||
Fair value of consideration transferred | $ | 57,127 | ||
The preliminary estimates of the fair value of assets acquired and liabilities assumed are based on available information as of the date of this report and may be revised as additional information becomes available, which primarily includes the finalization of the valuation report in relation to the subscriber accounts and the other intangible asset and the settlement of customary post closing working capital adjustments. | ||||
Goodwill in the amount of $35,509,000 was recognized in connection with the LiveWatch Acquisition and was calculated as the excess of the consideration transferred over the net assets recognized and represents the value to the Company for LiveWatch's recurring revenue and cash flow streams and its diversified business model and marketing channel. All of the goodwill acquired in the LiveWatch Acquisition is estimated to be deductible for tax purposes. | ||||
The subscriber accounts acquired in the LiveWatch Acquisition are amortized using the 14-year 235% declining balance method. The other intangible asset acquired, which represents LiveWatch's trademark asset, is amortized on a straight-line basis over its estimated useful life of 10 years. | ||||
As of March 31, 2015, the Company incurred $946,000 of legal and professional services expense and other costs related to the LiveWatch Acquisition, which are included in Selling, general and administrative expense in the condensed consolidated statements of operations and comprehensive income (loss). | ||||
The Company's results of operations for the three months ended March 31, 2015 include the operations of LiveWatch from the Closing Date. The effect of the LiveWatch Acquisition was not material to the Company's consolidated results for the periods presented and, accordingly, proforma financial disclosures have not been presented. |
Other_Accrued_Liabilities
Other Accrued Liabilities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Other Accrued Liabilities | Other Accrued Liabilities | |||||||
Other accrued liabilities consisted of the following (amounts in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Interest payable | $ | 29,117 | $ | 18,251 | ||||
Income taxes payable | 4,427 | 3,494 | ||||||
Legal accrual | 367 | 222 | ||||||
Other | 9,288 | 9,127 | ||||||
Total Other accrued liabilities | $ | 43,199 | $ | 31,094 | ||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
Long-term debt consisted of the following (amounts in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
9.125% Senior Notes due April 1, 2020 | $ | 585,000 | $ | 585,000 | ||||
9.868% Promissory Note to Ascent Capital due October 1, 2020 | 100,000 | 100,000 | ||||||
Term loans, mature March 23, 2018, LIBOR plus 3.25%, subject to a LIBOR floor of 1.00% | 892,199 | 894,208 | ||||||
$315 million revolving credit facility, matures December 22, 2017, LIBOR plus 3.75%, subject to a LIBOR floor of 1.00% | 130,300 | 70,500 | ||||||
1,707,499 | 1,649,708 | |||||||
Less current portion of long-term debt | (9,166 | ) | (9,166 | ) | ||||
Long-term debt | $ | 1,698,333 | $ | 1,640,542 | ||||
Senior Notes | ||||||||
The senior notes total $585,000,000 in principal, mature on April 1, 2020 and bear interest at 9.125% per annum (the "Senior Notes"). Interest payments are due semi-annually on April 1 and October 1 of each year. The Senior Notes are guaranteed by all of the Company's existing domestic subsidiaries. Ascent Capital has not guaranteed any of the Company's obligations under the Senior Notes. | ||||||||
Ascent Intercompany Loan | ||||||||
On August 16, 2013, in connection with the Security Networks Acquisition, the Company executed and delivered a Promissory Note to Ascent Capital in a principal amount of $100,000,000 (the “Ascent Intercompany Loan”). The entire principal amount under the Ascent Intercompany Loan is due on October 1, 2020. The Company may prepay any portion of the balance of the Ascent Intercompany Loan at any time from time to time without fee, premium or penalty (subject to certain financial covenants associated with the Company’s other indebtedness). Any unpaid balance of the Ascent Intercompany Loan bears interest at a rate equal to 9.868% per annum, payable semi-annually in cash in arrears on January 12 and July 12 of each year, commencing on January 12, 2014. Borrowings under the Ascent Intercompany Loan constitute unsecured obligations of the Company and are not guaranteed by any of the Company’s subsidiaries. | ||||||||
Credit Facility | ||||||||
On February 17, 2015, the Company entered into an amendment (“Amendment No. 4”) with the lenders of its existing senior secured credit agreement dated March 23, 2012, and as amended and restated on August 16, 2013, March 25, 2013 and November 7, 2012 (the “Existing Credit Agreement”). Amendment No. 4 provided for, among other things, an increase in the commitments under the revolving credit facility in a principal amount of $90,000,000 (the Existing Credit Agreement together with Amendment No. 4, the "Credit Facility"). | ||||||||
The Credit Facility term loans bear interest at LIBOR plus 3.25%, subject to a LIBOR floor of 1.00%, and mature on March 23, 2018. Principal payments of approximately $2,292,000 and interest on the term loans are due quarterly. The Credit Facility revolver bears interest at LIBOR plus 3.75%, subject to a LIBOR floor of 1.00%, and matures on December 22, 2017. There is an annual commitment fee of 0.50% on unused portions of the Credit Facility revolver. As of March 31, 2015, $184,700,000 is available for borrowing under the revolving credit facility. | ||||||||
At any time after the occurrence of an event of default under the Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Credit Facility immediately due and payable and terminate any commitment to make further loans under the Credit Facility. In addition, failure to comply with restrictions contained in the Senior Notes could lead to an event of default under the Credit Facility. | ||||||||
On March 30, 2015, the Company borrowed $33,000,000 on the Credit Facility revolver to fund its April 1, 2015 interest payment due under the Senior Notes of approximately $26,691,000 and other business activities. | ||||||||
The Credit Facility is secured by a pledge of all of the outstanding stock of the Company and all of its existing subsidiaries and is guaranteed by all of the Company’s existing domestic subsidiaries. Ascent Capital has not guaranteed any of the Company’s obligations under the Credit Facility. | ||||||||
As of March 31, 2015, the Company has deferred financing costs, net of accumulated amortization, of $20,292,000 related to the Senior Notes and the Credit Facility. These costs are included in Other assets, net on the accompanying consolidated balance sheet and will be amortized over the remaining term of the respective debt instruments using the effective-interest method. | ||||||||
In order to reduce the financial risk related to changes in interest rates associated with the floating rate term loans under the Credit Facility, the Company has entered into interest rate swap agreements with terms similar to the Credit Facility term loans (all outstanding interest rate swap agreements are collectively referred to as the “Swaps”). The Swaps have a maturity date of March 23, 2018 to match the term of the Credit Facility term loans. The Swaps have been designated as effective hedges of the Company’s variable rate debt and qualify for hedge accounting. See note 6, Derivatives, for further disclosures related to these derivative instruments. As a result of the Swaps, the interest rate on the borrowings under the Credit Facility term loans have been effectively converted from a variable rate to a weighted average fixed rate of 5.06%. | ||||||||
The terms of the Senior Notes and Credit Facility provide for certain financial and nonfinancial covenants. As of March 31, 2015, the Company was in compliance with all required covenants. | ||||||||
As of March 31, 2015, principal payments scheduled to be made on the Company’s debt obligations are as follows (amounts in thousands): | ||||||||
Remainder of 2015 | $ | 6,875 | ||||||
2016 | 9,166 | |||||||
2017 | 139,466 | |||||||
2018 | 870,800 | |||||||
2019 | — | |||||||
2020 | 685,000 | |||||||
Thereafter | — | |||||||
Total principal payments | 1,711,307 | |||||||
Less: | ||||||||
Unamortized discount on the Credit Facility term loans | 3,808 | |||||||
Total debt on condensed consolidated balance sheet | $ | 1,707,499 | ||||||
Derivatives
Derivatives | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Derivatives | Derivatives | ||||||||
The Company utilizes interest rate swap agreements to reduce the interest rate risk inherent in the Company’s variable rate Credit Facility term loans. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatility. The Company incorporates credit valuation adjustments to appropriately reflect the respective counterparty’s nonperformance risk in the fair value measurements. See note 7, Fair Value Measurements, for additional information about the credit valuation adjustments. | |||||||||
The Swaps’ outstanding notional balance as of March 31, 2015 and terms are noted below: | |||||||||
Notional | Effective Date | Fixed | Variable Rate Received | ||||||
Rate Paid | |||||||||
$ | 533,500,000 | March 28, 2013 | 1.88% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor (a) | |||||
141,375,000 | March 28, 2013 | 1.38% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor (a) | ||||||
110,521,357 | September 30, 2013 | 1.96% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor | ||||||
110,521,357 | September 30, 2013 | 1.85% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor | ||||||
(a) | On March 25, 2013, the Company negotiated amendments to the terms of these interest rate swap agreements, which were entered into in March 2012 (the "Existing Swap Agreements," as amended, the “Amended Swaps”). The Amended Swaps are held with the same counterparties as the Existing Swap Agreements. Upon entering into the Amended Swaps, the Company simultaneously dedesignated the Existing Swap Agreements and redesignated the Amended Swaps as cash flow hedges for the underlying change in the swap terms. The amounts previously recognized in Accumulated other comprehensive income (loss) relating to the dedesignation are recognized in Interest expense over the remaining life of the Amended Swaps. | ||||||||
All of the Swaps are designated and qualify as cash flow hedging instruments, with the effective portion of the Swaps' change in fair value recorded in Accumulated other comprehensive income (loss). Any ineffective portions of the Swaps' change in fair value are recognized in current earnings in Interest expense. Changes in the fair value of the Swaps recognized in Accumulated other comprehensive income (loss) are reclassified to Interest expense when the hedged interest payments on the underlying debt are recognized. Amounts in Accumulated other comprehensive income (loss) expected to be recognized in Interest expense in the coming 12 months total approximately $7,309,000. | |||||||||
The impact of the derivatives designated as cash flow hedges on the condensed consolidated financial statements is depicted below (amounts in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Effective portion of loss recognized in Accumulated other comprehensive loss | $ | (6,268 | ) | (3,371 | ) | ||||
Effective portion of loss reclassified from Accumulated other comprehensive loss into Net loss (a) | $ | (1,805 | ) | (1,700 | ) | ||||
Ineffective portion of amount of loss recognized into Net loss on interest rate swaps (a) | $ | (84 | ) | (1 | ) | ||||
(a) | Amounts are included in Interest expense in the unaudited condensed consolidated statements of operations and comprehensive income (loss). |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||
According to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board Accounting Standards Codification, fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value are classified and disclosed in the following three categories: | ||||||||||||||
• | Level 1 - Quoted prices for identical instruments in active markets. | |||||||||||||
• | Level 2 - Quoted prices for similar instruments in active or inactive markets and valuations derived from models where all significant inputs are observable in active markets. | |||||||||||||
• | Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable in any market. | |||||||||||||
The following summarizes the fair value level of assets and liabilities that are measured on a recurring basis at March 31, 2015 and December 31, 2014 (amounts in thousands): | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
31-Mar-15 | ||||||||||||||
Derivative financial instruments — assets (a) | $ | — | 257 | — | $ | 257 | ||||||||
Derivative financial instruments - liabilities | — | (9,447 | ) | — | (9,447 | ) | ||||||||
Total | $ | — | (9,190 | ) | — | $ | (9,190 | ) | ||||||
31-Dec-14 | ||||||||||||||
Derivative financial instruments - assets (a) | $ | — | 1,123 | — | $ | 1,123 | ||||||||
Derivative financial instruments - liabilities | — | (5,780 | ) | — | (5,780 | ) | ||||||||
Total | $ | — | (4,657 | ) | — | $ | (4,657 | ) | ||||||
(a) | Included in Other assets, net on the condensed consolidated balance sheets. | |||||||||||||
The Company has determined that the majority of the inputs used to value the Swaps fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with the derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by their counterparties. As the counterparties have publicly available credit information, the credit spreads over LIBOR used in the calculations represent implied credit default swap spreads obtained from a third-party credit data provider. As of March 31, 2015, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of the Swaps. As a result, the Company has determined that its derivative valuations are classified in Level 2 of the fair value hierarchy. | ||||||||||||||
Carrying values and fair values of financial instruments that are not carried at fair value are as follows (amounts in thousands): | ||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||
Long term debt, including current portion: | ||||||||||||||
Carrying value | $ | 1,707,499 | $ | 1,649,708 | ||||||||||
Fair value (a) | 1,698,876 | 1,605,255 | ||||||||||||
(a) | T he fair value is based on market quotations from third party financial institutions and is classified as Level 2 in the hierarchy. | |||||||||||||
The Company’s other financial instruments, including cash and cash equivalents, accounts receivable and accounts payable are carried at cost, which approximates their fair value because of their short-term maturity. |
Restructuring_Charges
Restructuring Charges | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||
Restructuring Charges | Restructuring Charges | |||||||||||||
In connection with the Security Networks Acquisition, management approved a restructuring plan to transition Security Networks’ operations in West Palm Beach and Kissimmee, Florida to Dallas, Texas (the “2013 Restructuring Plan”). The 2013 Restructuring Plan provided certain Security Networks' employees with a severance package that entitled them to receive benefits upon completion of the transition in 2014. Severance costs related to the 2013 Restructuring Plan were recognized ratably over the future service period. No restructuring charges were recognized during the three months ended March 31, 2015. During the three months ended March 31, 2014, the Company recognized $547,000 of restructuring charges related to employee termination benefits under the 2013 Restructuring Plan. The transition of Security Networks' operations to Dallas was completed in the second quarter of 2014. | ||||||||||||||
The following tables provide the activity and balances of the 2013 Restructuring Plan (amounts in thousands): | ||||||||||||||
31-Dec-14 | Additions | Payments | 31-Mar-15 | |||||||||||
2013 Restructuring Plan | ||||||||||||||
Severance and retention | $ | 134 | — | (134 | ) | $ | — | |||||||
31-Dec-13 | Additions | Payments | 31-Mar-14 | |||||||||||
2013 Restructuring Plan | ||||||||||||||
Severance and retention | $ | 1,570 | 547 | (504 | ) | $ | 1,613 | |||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||
The following table provides a summary of the changes in Accumulated other comprehensive income (loss) for the period presented (amounts in thousands): | ||||
Accumulated | ||||
other | ||||
comprehensive | ||||
income (loss) | ||||
As of December 31, 2014 | $ | (4,805 | ) | |
Unrealized loss on derivatives recognized through Accumulated other comprehensive loss | (6,268 | ) | ||
Reclassifications of unrealized loss on derivatives into net income (a) | 1,805 | |||
As of March 31, 2015 | $ | (9,268 | ) | |
(a) | Amounts reclassified into net income are included in Interest expense on the condensed consolidated statement of operations. See note 6, Derivatives, for further information. |
Commitments_Contingencies_and_
Commitments, Contingencies and Other Liabilities | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Liabilities | Commitments, Contingencies and Other Liabilities |
The Company is involved in litigation and similar claims incidental to the conduct of its business. Matters that are probable of unfavorable outcome to the Company and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, management’s estimate of the outcomes of such matters and experience in contesting, litigating and settling similar matters. In management’s opinion, none of the pending actions is likely to have a material adverse impact on the Company’s financial position or results of operations. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On April 9, 2015, the Company entered into Amendment No. 5 (the “Amendment No. 5”) to its Credit Facility. Pursuant to Amendment No. 5, the Company completed the issuance of an incremental $550,000,000 senior secured Term Loan B offering (the “New Term Loans”). The New Term Loans bear interest at LIBOR plus 3.50%, subject to a LIBOR floor of 1.00%, and mature on April 9, 2022. The Company used the net proceeds to retire $492,000,000 of its existing Term Loans, due March 2018, and repaid approximately $50,000,000 of its Credit Facility revolver. Amendment No. 5 also incorporates certain covenant changes, including the removal of the third quarter 2015 Senior Secured and Total Leverage covenant step-downs. |
Consolidating_Guarantor_Financ
Consolidating Guarantor Financials | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||
Consolidating Guarantor Financial Information | Consolidating Guarantor Financial Information | ||||||||||||||||
The Senior Notes were issued by Monitronics (the “Parent Issuer”) and are fully and unconditionally guaranteed, on a joint and several basis, by all of the Company’s existing domestic subsidiaries (“Subsidiary Guarantors”). Ascent Capital has not guaranteed any of the Company’s obligations under the Senior Notes. Consolidating guarantor financial information has not been presented for the condensed consolidated balance sheet as of December 31, 2014, as substantially all of the Company’s operations were conducted by the Parent Issuer entity. The Company believes that disclosing such information would not provide investors with any additional information that would be material in evaluating the sufficiency of the guarantees. The unaudited condensed consolidating financial information for the Parent Issuer, the Subsidiary Guarantors and the non-guarantors are as follows: | |||||||||||||||||
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
(unaudited) | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Parent Issuer | Subsidiary | Non-Guarantors | Eliminations | Consolidated | |||||||||||||
Guarantors | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 24,673 | 757 | — | — | $ | 25,430 | ||||||||||
Restricted cash | 123 | — | — | — | 123 | ||||||||||||
Trade receivables, net | 13,664 | 295 | — | — | 13,959 | ||||||||||||
Deferred income tax assets, net | 6,567 | — | — | — | 6,567 | ||||||||||||
Prepaid and other current assets | 12,991 | 993 | — | (4,938 | ) | 9,046 | |||||||||||
Total current assets | 58,018 | 2,045 | — | (4,938 | ) | 55,125 | |||||||||||
Investment in subsidiaries | 60,244 | — | — | (60,244 | ) | — | |||||||||||
Property and equipment, net | 23,682 | 391 | — | — | 24,073 | ||||||||||||
Subscriber accounts, net | 1,370,173 | 29,347 | — | — | 1,399,520 | ||||||||||||
Dealer network and other intangible assets, net | 39,892 | 1,289 | — | — | 41,181 | ||||||||||||
Goodwill | 527,191 | 35,820 | — | — | 563,011 | ||||||||||||
Other assets, net | 23,805 | — | — | — | 23,805 | ||||||||||||
Total assets | $ | 2,103,005 | 68,892 | — | (65,182 | ) | $ | 2,106,715 | |||||||||
Liabilities and Stockholder's Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 3,489 | 1,802 | — | — | $ | 5,291 | ||||||||||
Accrued payroll and related liabilities | 2,826 | 209 | — | — | 3,035 | ||||||||||||
Other accrued liabilities | 43,023 | 5,114 | — | (4,938 | ) | 43,199 | |||||||||||
Deferred revenue | 15,254 | 727 | — | — | 15,981 | ||||||||||||
Holdback liability | 17,591 | 77 | — | — | 17,668 | ||||||||||||
Current portion of long-term debt | 9,166 | — | — | — | 9,166 | ||||||||||||
Total current liabilities | 91,349 | 7,929 | — | (4,938 | ) | 94,340 | |||||||||||
Non-current liabilities: | |||||||||||||||||
Long-term debt | 1,698,333 | — | — | — | 1,698,333 | ||||||||||||
Long-term holdback liability | 4,816 | — | — | — | 4,816 | ||||||||||||
Derivative financial instruments | 9,447 | — | — | — | 9,447 | ||||||||||||
Deferred income tax liability, net | 16,600 | 200 | — | — | 16,800 | ||||||||||||
Other liabilities | 14,603 | 519 | — | — | 15,122 | ||||||||||||
Total liabilities | 1,835,148 | 8,648 | — | (4,938 | ) | 1,838,858 | |||||||||||
Total stockholder's equity | 267,857 | 60,244 | — | (60,244 | ) | 267,857 | |||||||||||
Total liabilities and stockholder's equity | $ | 2,103,005 | 68,892 | — | (65,182 | ) | $ | 2,106,715 | |||||||||
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Parent Issuer | Subsidiary | Non-Guarantors | Eliminations | Consolidated | |||||||||||||
Guarantors | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net revenue | $ | 136,599 | 1,817 | — | — | $ | 138,416 | ||||||||||
0 | |||||||||||||||||
Operating expenses: | 0 | ||||||||||||||||
Cost of services | 24,708 | 982 | — | — | 25,690 | ||||||||||||
Selling, general, and administrative, including stock-based compensation | 21,501 | 1,923 | — | — | 23,424 | ||||||||||||
Amortization of subscriber accounts, dealer network and other intangible assets | 62,508 | 633 | — | — | 63,141 | ||||||||||||
Depreciation | 2,291 | 6 | — | — | 2,297 | ||||||||||||
Gain on disposal of operating assets | (3 | ) | — | 0 | — | (3 | ) | ||||||||||
111,005 | 3,544 | — | — | 114,549 | |||||||||||||
Operating income | 25,594 | (1,727 | ) | — | — | 23,867 | |||||||||||
Other expense (income): | |||||||||||||||||
Equity in income of subsidiaries | 1,929 | — | — | (1,929 | ) | — | |||||||||||
Interest expense | 30,238 | 2 | — | — | 30,240 | ||||||||||||
32,167 | 2 | — | (1,929 | ) | 30,240 | ||||||||||||
Income (loss) before income taxes | (6,573 | ) | (1,729 | ) | — | 1,929 | (6,373 | ) | |||||||||
Income tax expense | 1,761 | 200 | — | — | 1,961 | ||||||||||||
Net income (loss) | (8,334 | ) | (1,929 | ) | — | 1,929 | (8,334 | ) | |||||||||
Other comprehensive loss: | |||||||||||||||||
Unrealized loss on derivative contracts | (4,463 | ) | — | — | — | (4,463 | ) | ||||||||||
Total other comprehensive loss | (4,463 | ) | — | — | — | (4,463 | ) | ||||||||||
Comprehensive income (loss) | $ | (12,797 | ) | (1,929 | ) | — | 1,929 | $ | (12,797 | ) | |||||||
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Parent Issuer | Subsidiary | Non-Guarantors | Eliminations | Consolidated | |||||||||||||
Guarantors | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net revenue | $ | 104,093 | 28,771 | — | — | $ | 132,864 | ||||||||||
Operating expenses: | |||||||||||||||||
Cost of services | 17,782 | 4,308 | — | — | 22,090 | ||||||||||||
Selling, general, and administrative, including stock-based compensation | 19,032 | 3,940 | — | — | 22,972 | ||||||||||||
Amortization of subscriber accounts, dealer network and other intangible assets | 45,263 | 16,517 | — | — | 61,780 | ||||||||||||
Depreciation | 1,908 | 475 | — | — | 2,383 | ||||||||||||
Restructuring charges | — | 547 | — | — | 547 | ||||||||||||
83,985 | 25,787 | — | — | 109,772 | |||||||||||||
Operating income | 20,108 | 2,984 | — | — | 23,092 | ||||||||||||
Other expense (income): | |||||||||||||||||
Equity in income of subsidiaries | (1,858 | ) | — | — | 1,858 | — | |||||||||||
Interest expense | 29,046 | 298 | — | — | 29,344 | ||||||||||||
27,188 | 298 | — | 1,858 | 29,344 | |||||||||||||
Income (loss) before income taxes | (7,080 | ) | 2,686 | — | (1,858 | ) | (6,252 | ) | |||||||||
Income tax expense | 771 | 828 | — | — | 1,599 | ||||||||||||
Net income (loss) | (7,851 | ) | 1,858 | — | (1,858 | ) | (7,851 | ) | |||||||||
Other comprehensive loss: | |||||||||||||||||
Unrealized loss on derivative contracts | (1,671 | ) | — | — | — | (1,671 | ) | ||||||||||
Total other comprehensive loss | (1,671 | ) | — | — | — | (1,671 | ) | ||||||||||
Comprehensive income (loss) | $ | (9,522 | ) | 1,858 | — | (1,858 | ) | $ | (9,522 | ) | |||||||
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Parent Issuer | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Guarantors | Guarantors | ||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 67,742 | (3,686 | ) | — | — | $ | 64,056 | |||||||||
Investing activities: | |||||||||||||||||
Capital expenditures | (2,693 | ) | (35 | ) | — | — | (2,728 | ) | |||||||||
Cost of subscriber accounts acquired | (60,519 | ) | (534 | ) | — | — | (61,053 | ) | |||||||||
Cash acquired (paid) on acquisition | (61,115 | ) | 4,772 | (56,343 | ) | ||||||||||||
Increase in restricted cash | (105 | ) | — | — | — | (105 | ) | ||||||||||
Proceeds from disposal of operating assets | 3 | — | — | — | 3 | ||||||||||||
Net cash provided by (used in) investing activities | (124,429 | ) | 4,203 | — | — | (120,226 | ) | ||||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | 91,400 | — | — | — | 91,400 | ||||||||||||
Payments on long-term debt | (33,892 | ) | — | — | — | (33,892 | ) | ||||||||||
Payments of financing costs | (551 | ) | — | — | — | (551 | ) | ||||||||||
Contribution from Ascent Capital | 22,690 | — | — | — | 22,690 | ||||||||||||
Net cash provided by financing activities | 79,647 | — | — | — | 79,647 | ||||||||||||
Net increase in cash and cash equivalents | 22,960 | 517 | — | — | 23,477 | ||||||||||||
Cash and cash equivalents at beginning of period | 1,713 | 240 | — | — | 1,953 | ||||||||||||
Cash and cash equivalents at end of period | $ | 24,673 | 757 | — | — | $ | 25,430 | ||||||||||
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Parent Issuer | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Guarantors | Guarantors | ||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net cash provided by operating activities | $ | 53,546 | 13,665 | — | — | $ | 67,211 | ||||||||||
Investing activities: | |||||||||||||||||
Capital expenditures | (1,903 | ) | (35 | ) | — | — | (1,938 | ) | |||||||||
Cost of subscriber accounts acquired | (39,742 | ) | (14,047 | ) | — | — | (53,789 | ) | |||||||||
Increase in restricted cash | (79 | ) | — | — | — | (79 | ) | ||||||||||
Other investing activities | — | (25 | ) | — | — | (25 | ) | ||||||||||
Net cash used in investing activities | (41,724 | ) | (14,107 | ) | — | — | (55,831 | ) | |||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | 42,900 | — | — | — | 42,900 | ||||||||||||
Payments on long-term debt | (27,192 | ) | — | — | — | (27,192 | ) | ||||||||||
Net cash provided by financing activities | 15,708 | — | — | — | 15,708 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 27,530 | (442 | ) | — | — | 27,088 | |||||||||||
Cash and cash equivalents at beginning of period | 1,775 | 2,580 | — | — | 4,355 | ||||||||||||
Cash and cash equivalents at end of period | $ | 29,305 | 2,138 | — | — | $ | 31,443 | ||||||||||
LiveWatch_Acquisition_Tables
LiveWatch Acquisition (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Schedule of Business Acquisitions | The LiveWatch Acquisition was accounted for as a business combination utilizing the acquisition method in accordance with FASB Accounting Standards Codification Topic 805, Business Combinations. Under the acquisition method of accounting, the fair value of the consideration transferred has been allocated to LiveWatch's tangible and identifiable intangible assets acquired and liabilities assumed based on their preliminary estimates of fair value as follows (amounts in thousands): | |||
Cash | $ | 784 | ||
Trade receivables | 273 | |||
Other current assets | 599 | |||
Property and equipment | 362 | |||
Subscriber accounts | 24,900 | |||
Other intangible asset | 1,300 | |||
Goodwill | 35,509 | |||
Current liabilities | (6,600 | ) | ||
Fair value of consideration transferred | $ | 57,127 | ||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of other accrued liabilities | Other accrued liabilities consisted of the following (amounts in thousands): | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Interest payable | $ | 29,117 | $ | 18,251 | ||||
Income taxes payable | 4,427 | 3,494 | ||||||
Legal accrual | 367 | 222 | ||||||
Other | 9,288 | 9,127 | ||||||
Total Other accrued liabilities | $ | 43,199 | $ | 31,094 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of long-term debt | Long-term debt consisted of the following (amounts in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
9.125% Senior Notes due April 1, 2020 | $ | 585,000 | $ | 585,000 | ||||
9.868% Promissory Note to Ascent Capital due October 1, 2020 | 100,000 | 100,000 | ||||||
Term loans, mature March 23, 2018, LIBOR plus 3.25%, subject to a LIBOR floor of 1.00% | 892,199 | 894,208 | ||||||
$315 million revolving credit facility, matures December 22, 2017, LIBOR plus 3.75%, subject to a LIBOR floor of 1.00% | 130,300 | 70,500 | ||||||
1,707,499 | 1,649,708 | |||||||
Less current portion of long-term debt | (9,166 | ) | (9,166 | ) | ||||
Long-term debt | $ | 1,698,333 | $ | 1,640,542 | ||||
Schedule of maturities of long-term debt including short term borrowings | As of March 31, 2015, principal payments scheduled to be made on the Company’s debt obligations are as follows (amounts in thousands): | |||||||
Remainder of 2015 | $ | 6,875 | ||||||
2016 | 9,166 | |||||||
2017 | 139,466 | |||||||
2018 | 870,800 | |||||||
2019 | — | |||||||
2020 | 685,000 | |||||||
Thereafter | — | |||||||
Total principal payments | 1,711,307 | |||||||
Less: | ||||||||
Unamortized discount on the Credit Facility term loans | 3,808 | |||||||
Total debt on condensed consolidated balance sheet | $ | 1,707,499 | ||||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Schedule of Swaps' outstanding notional balance and terms | The Swaps’ outstanding notional balance as of March 31, 2015 and terms are noted below: | ||||||||
Notional | Effective Date | Fixed | Variable Rate Received | ||||||
Rate Paid | |||||||||
$ | 533,500,000 | March 28, 2013 | 1.88% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor (a) | |||||
141,375,000 | March 28, 2013 | 1.38% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor (a) | ||||||
110,521,357 | September 30, 2013 | 1.96% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor | ||||||
110,521,357 | September 30, 2013 | 1.85% | 3 mo. USD-LIBOR-BBA, subject to a 1.00% floor | ||||||
(a) | |||||||||
Schedule of impact of the derivatives designated as cash flow hedges on the condensed consolidated financial statements | The impact of the derivatives designated as cash flow hedges on the condensed consolidated financial statements is depicted below (amounts in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Effective portion of loss recognized in Accumulated other comprehensive loss | $ | (6,268 | ) | (3,371 | ) | ||||
Effective portion of loss reclassified from Accumulated other comprehensive loss into Net loss (a) | $ | (1,805 | ) | (1,700 | ) | ||||
Ineffective portion of amount of loss recognized into Net loss on interest rate swaps (a) | $ | (84 | ) | (1 | ) | ||||
(a) | Amounts are included in Interest expense in the unaudited condensed consolidated statements of operations and comprehensive income (loss). |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Schedule of fair value level of assets and liabilities that are measured on a recurring basis | The following summarizes the fair value level of assets and liabilities that are measured on a recurring basis at March 31, 2015 and December 31, 2014 (amounts in thousands): | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
31-Mar-15 | ||||||||||||||
Derivative financial instruments — assets (a) | $ | — | 257 | — | $ | 257 | ||||||||
Derivative financial instruments - liabilities | — | (9,447 | ) | — | (9,447 | ) | ||||||||
Total | $ | — | (9,190 | ) | — | $ | (9,190 | ) | ||||||
31-Dec-14 | ||||||||||||||
Derivative financial instruments - assets (a) | $ | — | 1,123 | — | $ | 1,123 | ||||||||
Derivative financial instruments - liabilities | — | (5,780 | ) | — | (5,780 | ) | ||||||||
Total | $ | — | (4,657 | ) | — | $ | (4,657 | ) | ||||||
(a) | Included in Other assets, net on the condensed consolidated balance sheets. | |||||||||||||
Schedule of Carrying values and fair values of financial instruments that are not carried at fair value | Carrying values and fair values of financial instruments that are not carried at fair value are as follows (amounts in thousands): | |||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||
Long term debt, including current portion: | ||||||||||||||
Carrying value | $ | 1,707,499 | $ | 1,649,708 | ||||||||||
Fair value (a) | 1,698,876 | 1,605,255 | ||||||||||||
(a) | T he fair value is based on market quotations from third party financial institutions and is classified as Level 2 in the hierarchy |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||
Schedule of activity and balance of the restructuring plan | The following tables provide the activity and balances of the 2013 Restructuring Plan (amounts in thousands): | |||||||||||||
31-Dec-14 | Additions | Payments | 31-Mar-15 | |||||||||||
2013 Restructuring Plan | ||||||||||||||
Severance and retention | $ | 134 | — | (134 | ) | $ | — | |||||||
31-Dec-13 | Additions | Payments | 31-Mar-14 | |||||||||||
2013 Restructuring Plan | ||||||||||||||
Severance and retention | $ | 1,570 | 547 | (504 | ) | $ | 1,613 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Summary of the changes in Accumulated other comprehensive income (loss) | The following table provides a summary of the changes in Accumulated other comprehensive income (loss) for the period presented (amounts in thousands): | |||
Accumulated | ||||
other | ||||
comprehensive | ||||
income (loss) | ||||
As of December 31, 2014 | $ | (4,805 | ) | |
Unrealized loss on derivatives recognized through Accumulated other comprehensive loss | (6,268 | ) | ||
Reclassifications of unrealized loss on derivatives into net income (a) | 1,805 | |||
As of March 31, 2015 | $ | (9,268 | ) | |
(a) | Amounts reclassified into net income are included in Interest expense on the condensed consolidated statement of operations. See note 6, Derivatives, for further information. |
Consolidating_Guarantor_Financ1
Consolidating Guarantor Financials (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||
Condensed Balance Sheet | MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
(unaudited) | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Parent Issuer | Subsidiary | Non-Guarantors | Eliminations | Consolidated | |||||||||||||
Guarantors | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 24,673 | 757 | — | — | $ | 25,430 | ||||||||||
Restricted cash | 123 | — | — | — | 123 | ||||||||||||
Trade receivables, net | 13,664 | 295 | — | — | 13,959 | ||||||||||||
Deferred income tax assets, net | 6,567 | — | — | — | 6,567 | ||||||||||||
Prepaid and other current assets | 12,991 | 993 | — | (4,938 | ) | 9,046 | |||||||||||
Total current assets | 58,018 | 2,045 | — | (4,938 | ) | 55,125 | |||||||||||
Investment in subsidiaries | 60,244 | — | — | (60,244 | ) | — | |||||||||||
Property and equipment, net | 23,682 | 391 | — | — | 24,073 | ||||||||||||
Subscriber accounts, net | 1,370,173 | 29,347 | — | — | 1,399,520 | ||||||||||||
Dealer network and other intangible assets, net | 39,892 | 1,289 | — | — | 41,181 | ||||||||||||
Goodwill | 527,191 | 35,820 | — | — | 563,011 | ||||||||||||
Other assets, net | 23,805 | — | — | — | 23,805 | ||||||||||||
Total assets | $ | 2,103,005 | 68,892 | — | (65,182 | ) | $ | 2,106,715 | |||||||||
Liabilities and Stockholder's Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 3,489 | 1,802 | — | — | $ | 5,291 | ||||||||||
Accrued payroll and related liabilities | 2,826 | 209 | — | — | 3,035 | ||||||||||||
Other accrued liabilities | 43,023 | 5,114 | — | (4,938 | ) | 43,199 | |||||||||||
Deferred revenue | 15,254 | 727 | — | — | 15,981 | ||||||||||||
Holdback liability | 17,591 | 77 | — | — | 17,668 | ||||||||||||
Current portion of long-term debt | 9,166 | — | — | — | 9,166 | ||||||||||||
Total current liabilities | 91,349 | 7,929 | — | (4,938 | ) | 94,340 | |||||||||||
Non-current liabilities: | |||||||||||||||||
Long-term debt | 1,698,333 | — | — | — | 1,698,333 | ||||||||||||
Long-term holdback liability | 4,816 | — | — | — | 4,816 | ||||||||||||
Derivative financial instruments | 9,447 | — | — | — | 9,447 | ||||||||||||
Deferred income tax liability, net | 16,600 | 200 | — | — | 16,800 | ||||||||||||
Other liabilities | 14,603 | 519 | — | — | 15,122 | ||||||||||||
Total liabilities | 1,835,148 | 8,648 | — | (4,938 | ) | 1,838,858 | |||||||||||
Total stockholder's equity | 267,857 | 60,244 | — | (60,244 | ) | 267,857 | |||||||||||
Total liabilities and stockholder's equity | $ | 2,103,005 | 68,892 | — | (65,182 | ) | $ | 2,106,715 | |||||||||
Condensed Income Statement | MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Parent Issuer | Subsidiary | Non-Guarantors | Eliminations | Consolidated | |||||||||||||
Guarantors | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net revenue | $ | 136,599 | 1,817 | — | — | $ | 138,416 | ||||||||||
0 | |||||||||||||||||
Operating expenses: | 0 | ||||||||||||||||
Cost of services | 24,708 | 982 | — | — | 25,690 | ||||||||||||
Selling, general, and administrative, including stock-based compensation | 21,501 | 1,923 | — | — | 23,424 | ||||||||||||
Amortization of subscriber accounts, dealer network and other intangible assets | 62,508 | 633 | — | — | 63,141 | ||||||||||||
Depreciation | 2,291 | 6 | — | — | 2,297 | ||||||||||||
Gain on disposal of operating assets | (3 | ) | — | 0 | — | (3 | ) | ||||||||||
111,005 | 3,544 | — | — | 114,549 | |||||||||||||
Operating income | 25,594 | (1,727 | ) | — | — | 23,867 | |||||||||||
Other expense (income): | |||||||||||||||||
Equity in income of subsidiaries | 1,929 | — | — | (1,929 | ) | — | |||||||||||
Interest expense | 30,238 | 2 | — | — | 30,240 | ||||||||||||
32,167 | 2 | — | (1,929 | ) | 30,240 | ||||||||||||
Income (loss) before income taxes | (6,573 | ) | (1,729 | ) | — | 1,929 | (6,373 | ) | |||||||||
Income tax expense | 1,761 | 200 | — | — | 1,961 | ||||||||||||
Net income (loss) | (8,334 | ) | (1,929 | ) | — | 1,929 | (8,334 | ) | |||||||||
Other comprehensive loss: | |||||||||||||||||
Unrealized loss on derivative contracts | (4,463 | ) | — | — | — | (4,463 | ) | ||||||||||
Total other comprehensive loss | (4,463 | ) | — | — | — | (4,463 | ) | ||||||||||
Comprehensive income (loss) | $ | (12,797 | ) | (1,929 | ) | — | 1,929 | $ | (12,797 | ) | |||||||
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Parent Issuer | Subsidiary | Non-Guarantors | Eliminations | Consolidated | |||||||||||||
Guarantors | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net revenue | $ | 104,093 | 28,771 | — | — | $ | 132,864 | ||||||||||
Operating expenses: | |||||||||||||||||
Cost of services | 17,782 | 4,308 | — | — | 22,090 | ||||||||||||
Selling, general, and administrative, including stock-based compensation | 19,032 | 3,940 | — | — | 22,972 | ||||||||||||
Amortization of subscriber accounts, dealer network and other intangible assets | 45,263 | 16,517 | — | — | 61,780 | ||||||||||||
Depreciation | 1,908 | 475 | — | — | 2,383 | ||||||||||||
Restructuring charges | — | 547 | — | — | 547 | ||||||||||||
83,985 | 25,787 | — | — | 109,772 | |||||||||||||
Operating income | 20,108 | 2,984 | — | — | 23,092 | ||||||||||||
Other expense (income): | |||||||||||||||||
Equity in income of subsidiaries | (1,858 | ) | — | — | 1,858 | — | |||||||||||
Interest expense | 29,046 | 298 | — | — | 29,344 | ||||||||||||
27,188 | 298 | — | 1,858 | 29,344 | |||||||||||||
Income (loss) before income taxes | (7,080 | ) | 2,686 | — | (1,858 | ) | (6,252 | ) | |||||||||
Income tax expense | 771 | 828 | — | — | 1,599 | ||||||||||||
Net income (loss) | (7,851 | ) | 1,858 | — | (1,858 | ) | (7,851 | ) | |||||||||
Other comprehensive loss: | |||||||||||||||||
Unrealized loss on derivative contracts | (1,671 | ) | — | — | — | (1,671 | ) | ||||||||||
Total other comprehensive loss | (1,671 | ) | — | — | — | (1,671 | ) | ||||||||||
Comprehensive income (loss) | $ | (9,522 | ) | 1,858 | — | (1,858 | ) | $ | (9,522 | ) | |||||||
Condensed Cash Flow Statement | MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Parent Issuer | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Guarantors | Guarantors | ||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 67,742 | (3,686 | ) | — | — | $ | 64,056 | |||||||||
Investing activities: | |||||||||||||||||
Capital expenditures | (2,693 | ) | (35 | ) | — | — | (2,728 | ) | |||||||||
Cost of subscriber accounts acquired | (60,519 | ) | (534 | ) | — | — | (61,053 | ) | |||||||||
Cash acquired (paid) on acquisition | (61,115 | ) | 4,772 | (56,343 | ) | ||||||||||||
Increase in restricted cash | (105 | ) | — | — | — | (105 | ) | ||||||||||
Proceeds from disposal of operating assets | 3 | — | — | — | 3 | ||||||||||||
Net cash provided by (used in) investing activities | (124,429 | ) | 4,203 | — | — | (120,226 | ) | ||||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | 91,400 | — | — | — | 91,400 | ||||||||||||
Payments on long-term debt | (33,892 | ) | — | — | — | (33,892 | ) | ||||||||||
Payments of financing costs | (551 | ) | — | — | — | (551 | ) | ||||||||||
Contribution from Ascent Capital | 22,690 | — | — | — | 22,690 | ||||||||||||
Net cash provided by financing activities | 79,647 | — | — | — | 79,647 | ||||||||||||
Net increase in cash and cash equivalents | 22,960 | 517 | — | — | 23,477 | ||||||||||||
Cash and cash equivalents at beginning of period | 1,713 | 240 | — | — | 1,953 | ||||||||||||
Cash and cash equivalents at end of period | $ | 24,673 | 757 | — | — | $ | 25,430 | ||||||||||
MONITRONICS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Parent Issuer | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Guarantors | Guarantors | ||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Net cash provided by operating activities | $ | 53,546 | 13,665 | — | — | $ | 67,211 | ||||||||||
Investing activities: | |||||||||||||||||
Capital expenditures | (1,903 | ) | (35 | ) | — | — | (1,938 | ) | |||||||||
Cost of subscriber accounts acquired | (39,742 | ) | (14,047 | ) | — | — | (53,789 | ) | |||||||||
Increase in restricted cash | (79 | ) | — | — | — | (79 | ) | ||||||||||
Other investing activities | — | (25 | ) | — | — | (25 | ) | ||||||||||
Net cash used in investing activities | (41,724 | ) | (14,107 | ) | — | — | (55,831 | ) | |||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | 42,900 | — | — | — | 42,900 | ||||||||||||
Payments on long-term debt | (27,192 | ) | — | — | — | (27,192 | ) | ||||||||||
Net cash provided by financing activities | 15,708 | — | — | — | 15,708 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 27,530 | (442 | ) | — | — | 27,088 | |||||||||||
Cash and cash equivalents at beginning of period | 1,775 | 2,580 | — | — | 4,355 | ||||||||||||
Cash and cash equivalents at end of period | $ | 29,305 | 2,138 | — | — | $ | 31,443 | ||||||||||
LiveWatch_Acquisition_Narrativ
LiveWatch Acquisition - Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 23, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Goodwill | $563,011,000 | $527,502,000 | |
LiveWatch Security, LLC | |||
Business Acquisition [Line Items] | |||
Fair value of consideration | 61,115,000 | ||
Cash paid for acquisition | 3,988,000 | ||
Contingent consideration recognized in earnings | 519,000 | ||
Goodwill | 35,509,000 | ||
Amortization rate of acquired intangible assets | 235.00% | ||
Acquisition related costs | 946,000 | ||
LiveWatch Security, LLC | Subscriber accounts | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 14 years | ||
LiveWatch Security, LLC | Other intangible asset | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 10 years | ||
LiveWatch Security, LLC | Management retention bonus | |||
Business Acquisition [Line Items] | |||
Contingent consideration liability | 6,000,000 | ||
Term of contingent consideration | 2 years | ||
LiveWatch Security, LLC | Performance bonus | |||
Business Acquisition [Line Items] | |||
Contingent consideration liability | $8,500,000 | ||
Term of contingent consideration | 4 years |
LiveWatch_Acquisition_Schedule
LiveWatch Acquisition - Schedule of Business Acquisitions (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 23, 2015 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $563,011 | $527,502 | |
LiveWatch Security, LLC | |||
Business Acquisition [Line Items] | |||
Cash | 784 | ||
Trade receivables | 273 | ||
Other current assets | 599 | ||
Property and equipment | 362 | ||
Goodwill | 35,509 | ||
Current liabilities | -6,600 | ||
Fair value of consideration transferred | 57,127 | ||
Subscriber accounts | LiveWatch Security, LLC | |||
Business Acquisition [Line Items] | |||
Intangible assets, other than goodwill, acquired | 24,900 | ||
Other intangible asset | LiveWatch Security, LLC | |||
Business Acquisition [Line Items] | |||
Intangible assets, other than goodwill, acquired | $1,300 |
Other_Accrued_Liabilities_Sche
Other Accrued Liabilities - Schedule of other accrued liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Interest payable | $29,117 | $18,251 |
Income taxes payable | 4,427 | 3,494 |
Legal accrual | 367 | 222 |
Other | 9,288 | 9,127 |
Total Other accrued liabilities | $43,199 | $31,094 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 16, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Jul. 17, 2013 |
Debt Instrument [Line Items] | ||||
Total debt on condensed consolidated balance sheet | 1,707,499 | $1,649,708 | ||
Current portion of long-term debt | -9,166 | -9,166 | ||
Long-term debt | 1,698,333 | 1,640,542 | ||
Senior Notes | Senior Notes 9.125 Percent Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Total debt on condensed consolidated balance sheet | 585,000 | 585,000 | ||
Debt interest rate | 9.13% | 9.13% | ||
Promissory Note | 9.868% Promissory Note to Ascent Capital due October 1, 2020 | ||||
Debt Instrument [Line Items] | ||||
Total debt on condensed consolidated balance sheet | 100,000 | 100,000 | ||
Debt interest rate | 9.87% | 9.87% | ||
Term Loan | Term Loan Due March, 2018 | ||||
Debt Instrument [Line Items] | ||||
Total debt on condensed consolidated balance sheet | 892,199 | 894,208 | ||
Basis spread on variable debt | 3.25% | |||
Floor on variable debt | 1.00% | |||
Term Loan | Term Loan Due March, 2018 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable debt | 3.25% | |||
Floor on variable debt | 1.00% | |||
Revolving Credit Facility | Revolving Credit Facility Due 2017 | ||||
Debt Instrument [Line Items] | ||||
Total debt on condensed consolidated balance sheet | 130,300 | $70,500 | ||
Basis spread on variable debt | 3.75% | |||
Floor on variable debt | 1.00% | |||
Revolving Credit Facility | Revolving Credit Facility Due 2017 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable debt | 3.75% | |||
Floor on variable debt | 1.00% |
LongTerm_Debt_Schedule_of_Long1
Long-Term Debt - Schedule of Long Term Debt Maturity (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Remainder of 2015 | $6,875 | |
2016 | 9,166 | |
2017 | 139,466 | |
2018 | 870,800 | |
2019 | 0 | |
2020 | 685,000 | |
Thereafter | 0 | |
Total principal payments | 1,711,307 | |
Unamortized discount on the Credit Facility term loans | 3,808 | |
Total debt on condensed consolidated balance sheet | $1,707,499 | $1,649,708 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt - Narrative (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 30, 2015 | Feb. 17, 2015 | Aug. 16, 2013 | Jul. 17, 2013 | |
Debt Instrument [Line Items] | ||||||
Proceeds from long-term debt | $91,400,000 | $42,900,000 | ||||
Remaining borrowing on line of credit | 184,700,000 | |||||
Deferred Finance Costs, Net | 20,292,000 | |||||
Senior Notes | Senior Notes 9.125 Percent Due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt issue amount | 585,000,000 | |||||
Debt interest rate | 9.13% | 9.13% | ||||
Interest Payable | 26,691,000 | |||||
Promissory Note | 9.868% Promissory Note to Ascent Capital due October 1, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 9.87% | 9.87% | ||||
Revolving Credit Facility | Revolving Credit Facility Due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Increase in borrowing capacity of credit line | 90,000,000 | |||||
Basis spread on variable debt | 3.75% | |||||
Floor on variable debt | 1.00% | |||||
Unused capacity fee for line of credit | 0.50% | |||||
Proceeds from Lines of Credit | 33,000,000 | |||||
Term Loan | Term Loan Due March, 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable debt | 3.25% | |||||
Floor on variable debt | 1.00% | |||||
Periodic payments for line of credit | 2,292,000 | |||||
Security Networks Acquisition | Promissory Note | 9.868% Promissory Note to Ascent Capital due October 1, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from long-term debt | 100,000,000 | |||||
Interest Rate Swap | Designated as Hedging Instrument | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Rate Paid | 5.06% |
Derivatives_Summary_of_Outstan
Derivatives - Summary of Outstanding Swaps (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | ||
1.884 % interest rate swaps | ||
Derivatives | ||
Notional | $533,500,000 | |
Rate Paid | 1.88% | [1] |
Variable interest rate base floor | 1.00% | |
Variable interest rate base | 3 mo.USD-LIBOR-BBA | [1] |
1.384 % interest rate swaps | ||
Derivatives | ||
Notional | 141,375,000 | |
Rate Paid | 1.38% | [1] |
Variable interest rate base floor | 1.00% | |
Variable interest rate base | 3 mo.USD-LIBOR-BBA | [1] |
1.959 % interest rate swaps | ||
Derivatives | ||
Notional | 110,521,357 | |
Rate Paid | 1.96% | |
Variable interest rate base floor | 1.00% | |
Variable interest rate base | 3 mo.USD-LIBOR-BBA | |
1.850 % interest rate swaps | ||
Derivatives | ||
Notional | $110,521,357 | |
Rate Paid | 1.85% | |
Variable interest rate base floor | 1.00% | |
Variable interest rate base | 3 mo.USD-LIBOR-BBA | |
[1] | On MarchB 25, 2013, the Company negotiated amendments to the terms of these interest rate swap agreements, which were entered into in March 2012 (the "Existing Swap Agreements," as amended, the bAmended Swapsb). The Amended Swaps are held with the same counterparties as the Existing Swap Agreements. Upon entering into the Amended Swaps, the Company simultaneously dedesignated the Existing Swap Agreements and redesignated the Amended Swaps as cash flow hedges for the underlying change in the swap terms. The amounts previously recognized in Accumulated other comprehensive income (loss) relating to the dedesignation are recognized in Interest expense over the remaining life of the Amended Swaps. |
Derivatives_Summary_of_Derivat
Derivatives - Summary of Derivatives Designated as Cash Flow Hedges (Details) (Interest Rate Swap, Cash flow hedge, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Interest Rate Swap | Cash flow hedge | ||||
Impact of the Swap on the consolidated financial statements | ||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $7,309 | |||
Effective portion of loss recognized in Accumulated other comprehensive loss | -6,268 | -3,371 | ||
Effective portion of gain (loss) reclassified from Accumulated other comprehensive income (loss) into Net income | -1,805 | [1] | -1,700 | [1] |
Ineffective portion of amount of gain (loss) recognized into Net income (loss) on interest rate swaps | ($84) | [1] | ($1) | [1] |
[1] | Amounts are included in Interest expense in the unaudited condensed consolidated statements of operations and comprehensive income (loss). |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value Measured On Recurring Basis (Details) (Recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fair value measurements | ||||
Derivative financial instruments - assets | $257 | [1] | $1,123 | [1] |
Derivative financial instruments - liabilities | -9,447 | -5,780 | ||
Total | -9,190 | -4,657 | ||
Level 1 | ||||
Fair value measurements | ||||
Derivative financial instruments - assets | 0 | [1] | 0 | [1] |
Derivative financial instruments - liabilities | 0 | 0 | ||
Total | 0 | 0 | ||
Level 2 | ||||
Fair value measurements | ||||
Derivative financial instruments - assets | 257 | [1] | 1,123 | [1] |
Derivative financial instruments - liabilities | -9,447 | -5,780 | ||
Total | -9,190 | -4,657 | ||
Level 3 | ||||
Fair value measurements | ||||
Derivative financial instruments - assets | 0 | [1] | 0 | [1] |
Derivative financial instruments - liabilities | 0 | 0 | ||
Total | $0 | $0 | ||
[1] | Included in Other assets, net on the condensed consolidated balance sheets. |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Instruments Not Carried at Fair Value (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Long term debt, including current portion: | ||||
Carrying value | $1,707,499 | $1,649,708 | ||
Fair value | $1,698,876 | [1] | $1,605,255 | [1] |
[1] | TB he fair value is based on market quotations from third party financial institutions and is classified as Level 2 in the hierarchy. |
Restructuring_Charges_Summary_
Restructuring Charges - Summary of Restructuring Charges (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | $0 | $547 |
Change in activity of restructuring reserves during the period | ||
Restructuring Charges | 0 | 547 |
2013 Restructuring Plan | Severance and retention | ||
Restructuring and Related Activities [Abstract] | ||
Restructuring charges | 0 | 547 |
Change in activity of restructuring reserves during the period | ||
Opening balance | 134 | 1,570 |
Restructuring Charges | 0 | 547 |
Payments | -134 | -504 |
Ending balance | $0 | $1,613 |
Restructuring_Charges_Narrativ
Restructuring Charges - Narrative (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $0 | $547 |
Severance and retention | 2013 Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $0 | $547 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Summary of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Changes in Accumulated other comprehensive income (loss) | ||
31-Dec-14 | ($4,805) | |
Unrealized loss on derivatives recognized through Accumulated other comprehensive loss | -6,268 | |
Reclassifications of unrealized loss on derivatives into net income | 1,805 | [1] |
31-Mar-15 | ($9,268) | |
[1] | Amounts reclassified into net income are included in Interest expense on the condensed consolidated statement of operations. See note 6, Derivatives, for further information. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Apr. 09, 2015 | Aug. 16, 2013 | Mar. 31, 2015 | |
Term Loan | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Extinguishment of debt | $492,000,000 | ||
Term Loan Due April 2022 | Term Loan | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt issue amount | 550,000,000 | ||
Revolving Credit Facility Due 2017 | Revolving Credit Facility | |||
Subsequent Event [Line Items] | |||
Basis spread on variable debt | 3.75% | ||
Floor on variable debt | 1.00% | ||
Revolving Credit Facility Due 2017 | Revolving Credit Facility | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Repayments of line of credit | $50,000,000 | ||
LIBOR | Term Loan Due April 2022 | Term Loan | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Basis spread on variable debt | 3.50% | ||
Floor on variable debt | 1.00% | ||
LIBOR | Revolving Credit Facility Due 2017 | Revolving Credit Facility | |||
Subsequent Event [Line Items] | |||
Basis spread on variable debt | 3.75% | ||
Floor on variable debt | 1.00% |
Consolidating_Guarantor_Financ2
Consolidating Guarantor Financials (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $25,430 | $1,953 | $31,443 | $4,355 |
Restricted cash | 123 | 18 | ||
Trade receivables, net | 13,959 | 13,796 | ||
Deferred income tax assets, net | 6,567 | 6,567 | ||
Prepaid and other current assets | 9,046 | 7,559 | ||
Total current assets | 55,125 | 29,893 | ||
Investment in subsidiaries | 0 | |||
Property and equipment, net | 24,073 | 23,280 | ||
Subscriber accounts, net | 1,399,520 | 1,373,630 | ||
Dealer network and other intangible assets, net | 41,181 | 44,855 | ||
Goodwill | 563,011 | 527,502 | ||
Other assets, net | 23,805 | 25,487 | ||
Total assets | 2,106,715 | 2,024,647 | ||
Accounts payable | 5,291 | 6,710 | ||
Accrued payroll and related liabilities | 3,035 | 3,604 | ||
Other accrued liabilities | 43,199 | 31,094 | ||
Deferred revenue | 15,981 | 14,945 | ||
Holdback liability | 17,668 | 19,046 | ||
Current portion of long-term debt | 9,166 | 9,166 | ||
Total current liabilities | 94,340 | 84,565 | ||
Long-term debt | 1,698,333 | 1,640,542 | ||
Long-term holdback liability | 4,816 | 5,156 | ||
Derivative financial instruments | 9,447 | 5,780 | ||
Deferred income tax liability, net | 16,800 | 15,771 | ||
Other liabilities | 15,122 | 15,267 | ||
Total liabilities | 1,838,858 | 1,767,081 | ||
Stockholders' Equity Attributable to Parent | 267,857 | 257,566 | ||
Total liabilities and stockholder's equity | 2,106,715 | 2,024,647 | ||
Monitronics | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 24,673 | 1,713 | 29,305 | 1,775 |
Restricted cash | 123 | |||
Trade receivables, net | 13,664 | |||
Deferred income tax assets, net | 6,567 | |||
Prepaid and other current assets | 12,991 | |||
Total current assets | 58,018 | |||
Investment in subsidiaries | 60,244 | |||
Property and equipment, net | 23,682 | |||
Subscriber accounts, net | 1,370,173 | |||
Dealer network and other intangible assets, net | 39,892 | |||
Goodwill | 527,191 | |||
Other assets, net | 23,805 | |||
Total assets | 2,103,005 | |||
Accounts payable | 3,489 | |||
Accrued payroll and related liabilities | 2,826 | |||
Other accrued liabilities | 43,023 | |||
Deferred revenue | 15,254 | |||
Holdback liability | 17,591 | |||
Current portion of long-term debt | 9,166 | |||
Total current liabilities | 91,349 | |||
Long-term debt | 1,698,333 | |||
Long-term holdback liability | 4,816 | |||
Derivative financial instruments | 9,447 | |||
Deferred income tax liability, net | 16,600 | |||
Other liabilities | 14,603 | |||
Total liabilities | 1,835,148 | |||
Stockholders' Equity Attributable to Parent | 267,857 | |||
Total liabilities and stockholder's equity | 2,103,005 | |||
Guarantor Subsidiaries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 757 | 240 | 2,138 | 2,580 |
Restricted cash | 0 | |||
Trade receivables, net | 295 | |||
Deferred income tax assets, net | 0 | |||
Prepaid and other current assets | 993 | |||
Total current assets | 2,045 | |||
Investment in subsidiaries | 0 | |||
Property and equipment, net | 391 | |||
Subscriber accounts, net | 29,347 | |||
Dealer network and other intangible assets, net | 1,289 | |||
Goodwill | 35,820 | |||
Other assets, net | 0 | |||
Total assets | 68,892 | |||
Accounts payable | 1,802 | |||
Accrued payroll and related liabilities | 209 | |||
Other accrued liabilities | 5,114 | |||
Deferred revenue | 727 | |||
Holdback liability | 77 | |||
Current portion of long-term debt | 0 | |||
Total current liabilities | 7,929 | |||
Long-term debt | 0 | |||
Long-term holdback liability | 0 | |||
Derivative financial instruments | 0 | |||
Deferred income tax liability, net | 200 | |||
Other liabilities | 519 | |||
Total liabilities | 8,648 | |||
Stockholders' Equity Attributable to Parent | 60,244 | |||
Total liabilities and stockholder's equity | 68,892 | |||
Non-Guarantor Subsidiaries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | |||
Trade receivables, net | 0 | |||
Deferred income tax assets, net | 0 | |||
Prepaid and other current assets | 0 | |||
Total current assets | 0 | |||
Investment in subsidiaries | 0 | |||
Property and equipment, net | 0 | |||
Subscriber accounts, net | 0 | |||
Dealer network and other intangible assets, net | 0 | |||
Goodwill | 0 | |||
Other assets, net | 0 | |||
Total assets | 0 | |||
Accounts payable | 0 | |||
Accrued payroll and related liabilities | 0 | |||
Other accrued liabilities | 0 | |||
Deferred revenue | 0 | |||
Holdback liability | 0 | |||
Current portion of long-term debt | 0 | |||
Total current liabilities | 0 | |||
Long-term debt | 0 | |||
Long-term holdback liability | 0 | |||
Derivative financial instruments | 0 | |||
Deferred income tax liability, net | 0 | |||
Other liabilities | 0 | |||
Total liabilities | 0 | |||
Stockholders' Equity Attributable to Parent | 0 | |||
Total liabilities and stockholder's equity | 0 | |||
Eliminations | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | |||
Trade receivables, net | 0 | |||
Deferred income tax assets, net | 0 | |||
Prepaid and other current assets | -4,938 | |||
Total current assets | -4,938 | |||
Investment in subsidiaries | -60,244 | |||
Property and equipment, net | 0 | |||
Subscriber accounts, net | 0 | |||
Dealer network and other intangible assets, net | 0 | |||
Goodwill | 0 | |||
Other assets, net | 0 | |||
Total assets | -65,182 | |||
Accounts payable | 0 | |||
Accrued payroll and related liabilities | 0 | |||
Other accrued liabilities | -4,938 | |||
Deferred revenue | 0 | |||
Holdback liability | 0 | |||
Current portion of long-term debt | 0 | |||
Total current liabilities | -4,938 | |||
Long-term debt | 0 | |||
Long-term holdback liability | 0 | |||
Derivative financial instruments | 0 | |||
Deferred income tax liability, net | 0 | |||
Other liabilities | 0 | |||
Total liabilities | -4,938 | |||
Stockholders' Equity Attributable to Parent | -60,244 | |||
Total liabilities and stockholder's equity | ($65,182) |
Consolidating_Guarantor_Financ3
Consolidating Guarantor Financials - Condensed Income and Comprehensive Income Statement (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | $138,416 | $132,864 |
Cost of services | 25,690 | 22,090 |
Selling, general, and administrative, including stock-based compensation | 23,424 | 22,972 |
Amortization of subscriber accounts, dealer network and other intangible assets | 63,141 | 61,780 |
Depreciation | 2,297 | 2,383 |
Gain on disposal of operating assets | -3 | 0 |
Restructuring charges | 0 | 547 |
Total operating expenses | 114,549 | 109,772 |
Operating income | 23,867 | 23,092 |
Equity in income of subsidiaries | 0 | 0 |
Interest expense | 30,240 | 29,344 |
Nonoperating Income (Expense) | 30,240 | 29,344 |
Loss before income taxes | -6,373 | -6,252 |
Income tax expense | 1,961 | 1,599 |
Net loss | -8,334 | -7,851 |
Unrealized loss on derivative contracts, net | -4,463 | -1,671 |
Other comprehensive loss | -4,463 | -1,671 |
Comprehensive loss | -12,797 | -9,522 |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 0 | 0 |
Cost of services | 0 | 0 |
Selling, general, and administrative, including stock-based compensation | 0 | 0 |
Amortization of subscriber accounts, dealer network and other intangible assets | 0 | 0 |
Depreciation | 0 | 0 |
Gain on disposal of operating assets | 0 | |
Restructuring charges | 0 | |
Total operating expenses | 0 | 0 |
Operating income | 0 | 0 |
Equity in income of subsidiaries | -1,929 | 1,858 |
Interest expense | 0 | 0 |
Nonoperating Income (Expense) | -1,929 | 1,858 |
Loss before income taxes | 1,929 | -1,858 |
Income tax expense | 0 | 0 |
Net loss | 1,929 | -1,858 |
Unrealized loss on derivative contracts, net | 0 | 0 |
Other comprehensive loss | 0 | 0 |
Comprehensive loss | 1,929 | -1,858 |
Monitronics | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 136,599 | 104,093 |
Cost of services | 24,708 | 17,782 |
Selling, general, and administrative, including stock-based compensation | 21,501 | 19,032 |
Amortization of subscriber accounts, dealer network and other intangible assets | 62,508 | 45,263 |
Depreciation | 2,291 | 1,908 |
Gain on disposal of operating assets | -3 | |
Restructuring charges | 0 | |
Total operating expenses | 111,005 | 83,985 |
Operating income | 25,594 | 20,108 |
Equity in income of subsidiaries | 1,929 | -1,858 |
Interest expense | 30,238 | 29,046 |
Nonoperating Income (Expense) | 32,167 | 27,188 |
Loss before income taxes | -6,573 | -7,080 |
Income tax expense | 1,761 | 771 |
Net loss | -8,334 | -7,851 |
Unrealized loss on derivative contracts, net | -4,463 | -1,671 |
Other comprehensive loss | -4,463 | -1,671 |
Comprehensive loss | -12,797 | -9,522 |
Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 1,817 | 28,771 |
Cost of services | 982 | 4,308 |
Selling, general, and administrative, including stock-based compensation | 1,923 | 3,940 |
Amortization of subscriber accounts, dealer network and other intangible assets | 633 | 16,517 |
Depreciation | 6 | 475 |
Gain on disposal of operating assets | 0 | |
Restructuring charges | 547 | |
Total operating expenses | 3,544 | 25,787 |
Operating income | -1,727 | 2,984 |
Equity in income of subsidiaries | 0 | 0 |
Interest expense | 2 | 298 |
Nonoperating Income (Expense) | 2 | 298 |
Loss before income taxes | -1,729 | 2,686 |
Income tax expense | 200 | 828 |
Net loss | -1,929 | 1,858 |
Unrealized loss on derivative contracts, net | 0 | 0 |
Other comprehensive loss | 0 | 0 |
Comprehensive loss | -1,929 | 1,858 |
Non-Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 0 | 0 |
Cost of services | 0 | 0 |
Selling, general, and administrative, including stock-based compensation | 0 | 0 |
Amortization of subscriber accounts, dealer network and other intangible assets | 0 | 0 |
Depreciation | 0 | 0 |
Gain on disposal of operating assets | 0 | |
Restructuring charges | 0 | |
Total operating expenses | 0 | 0 |
Operating income | 0 | 0 |
Equity in income of subsidiaries | 0 | 0 |
Interest expense | 0 | 0 |
Nonoperating Income (Expense) | 0 | 0 |
Loss before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net loss | 0 | 0 |
Unrealized loss on derivative contracts, net | 0 | 0 |
Other comprehensive loss | 0 | 0 |
Comprehensive loss | $0 | $0 |
Consolidating_Guarantor_Financ4
Consolidating Guarantor Financials - Condensed Cash Flow Statement (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $64,056,000 | $67,211,000 |
Capital expenditures | -2,728,000 | -1,938,000 |
Cost of subscriber accounts acquired | -61,053,000 | -53,789,000 |
Cash paid for acquisition, net of cash acquired | -56,343,000 | 0 |
Increase in restricted cash | -105,000 | -79,000 |
Proceeds from the disposal of operating assets | 3,000 | 0 |
Other investing activities | 0 | -25,000 |
Net cash used in investing activities | -120,226,000 | -55,831,000 |
Proceeds from long-term debt | 91,400,000 | 42,900,000 |
Payments on long-term debt | -33,892,000 | -27,192,000 |
Payments of financing costs | -551,000 | 0 |
Contribution from Ascent Capital | 22,690,000 | 0 |
Net cash provided by financing activities | 79,647,000 | 15,708,000 |
Net increase in cash and cash equivalents | 23,477,000 | 27,088,000 |
Cash and cash equivalents at beginning of period | 1,953,000 | 4,355,000 |
Cash and cash equivalents at end of period | 25,430,000 | 31,443,000 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Capital expenditures | 0 | 0 |
Cost of subscriber accounts acquired | 0 | 0 |
Cash paid for acquisition, net of cash acquired | ||
Increase in restricted cash | 0 | 0 |
Proceeds from the disposal of operating assets | 0 | |
Other investing activities | 0 | |
Net cash used in investing activities | 0 | 0 |
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments of financing costs | 0 | |
Contribution from Ascent Capital | 0 | |
Net cash provided by financing activities | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Monitronics | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 67,742,000 | 53,546,000 |
Capital expenditures | -2,693,000 | -1,903,000 |
Cost of subscriber accounts acquired | -60,519,000 | -39,742,000 |
Cash paid for acquisition, net of cash acquired | -61,115,000 | |
Increase in restricted cash | -105,000 | -79,000 |
Proceeds from the disposal of operating assets | 3,000 | |
Other investing activities | 0 | |
Net cash used in investing activities | -124,429,000 | -41,724,000 |
Proceeds from long-term debt | 91,400,000 | 42,900,000 |
Payments on long-term debt | -33,892,000 | -27,192,000 |
Payments of financing costs | -551,000 | |
Contribution from Ascent Capital | 22,690,000 | |
Net cash provided by financing activities | 79,647,000 | 15,708,000 |
Net increase in cash and cash equivalents | 22,960,000 | 27,530,000 |
Cash and cash equivalents at beginning of period | 1,713,000 | 1,775,000 |
Cash and cash equivalents at end of period | 24,673,000 | 29,305,000 |
Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | -3,686,000 | 13,665,000 |
Capital expenditures | -35,000 | -35,000 |
Cost of subscriber accounts acquired | -534,000 | -14,047,000 |
Cash paid for acquisition, net of cash acquired | 4,772,000 | |
Increase in restricted cash | 0 | 0 |
Proceeds from the disposal of operating assets | 0 | |
Other investing activities | -25,000 | |
Net cash used in investing activities | 4,203,000 | -14,107,000 |
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments of financing costs | 0 | |
Contribution from Ascent Capital | 0 | |
Net cash provided by financing activities | 0 | 0 |
Net increase in cash and cash equivalents | 517,000 | -442,000 |
Cash and cash equivalents at beginning of period | 240,000 | 2,580,000 |
Cash and cash equivalents at end of period | 757,000 | 2,138,000 |
Non-Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Capital expenditures | 0 | 0 |
Cost of subscriber accounts acquired | 0 | 0 |
Cash paid for acquisition, net of cash acquired | ||
Increase in restricted cash | 0 | 0 |
Proceeds from the disposal of operating assets | 0 | |
Other investing activities | 0 | |
Net cash used in investing activities | 0 | 0 |
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments of financing costs | 0 | |
Contribution from Ascent Capital | 0 | |
Net cash provided by financing activities | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 |