ADT - Earnings call 3 2023

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Operator

Good morning. thank you for attending today's ADT Third Quarter 2023 Earnings Call. My name is Jennifer, and I'll be your moderator today. [Operator Instructions]

I would now like to pass the conference to our host Elizabeth Landers with Investor Relations.

proceed. may You

Elizabeth Landers

good call And We you appreciate Thanks, discuss morning, ADT's today's to results. Third joining operator. everyone. Quarter XXXX

today's ADT's be DeVries; and call and Ken on CFO, Jim EVP and Chairman, Porpora. CEO, our Speaking President will

questions. Chief remarks, are for Business EVP Chief Officer. analyst Young, Wayne and joining Operating us Following the Officer; take Thorsen, Also prepared and we'll Q&A Don EVP and

on These our and morning, at slide press presentation materials we are financial our this available Earlier release results. website investor.adt.com. issued of a

Before I'd amounts operations, the discussed as periods for begin, for except to is the like we metrics that to which historical continuing business commercial the reported as third commercial on date cash flows, remind this of through discontinued being related XXXX, and the and everyone operations. call Financials quarter include of will of current for business sale. be

represent events. to or uncertainties materially. Today's statements beliefs results to expectations remarks subject are our statements differ future that about risks cause forward-looking actual forward-looking include that also and These

of cause described filings. our SEC differences factors may Some in are that the

to on will measures in non-GAAP financial measures reconciliation directly comparable be on can We ADT's presentation GAAP Investor measures also Relations our with a call. earnings The found along the discuss most those website.

with I'm the And excited call turn over to that, to Jim.

James DeVries

financial Porpora, on outlook. then to third and ADT's today. Thanks, ahead, our Elizabeth. our on Good wrap share our continue with our I'll our portfolio, begin our results, I'll call us for quarter for commercial everyone on Ken our thank XXXX divestiture third I'll with focus you joining morning, CFO, and path more to ADT's update details turn third business and how for the quarter performance. over call quarter an to sharpen we

to our and a we is our ADT XXXX as business. for pivotal streamline fine-tune year be proving portfolio

sheet. focus catalysts, and strengthening remains balance costs, reducing growth overhead our Our on our

core, returns reduction our of consumer with future will debt on businesses optimal team shareholders. Going forward, cash focus emphasis and flow on to the of growth, our allocation between the and capital

we'll to to we'll smart efficiencies. opportunities remain but market organic, which the potential within share to growth, an on on Related and keep primarily inorganic our have core increase home eye focused business, continue

briefly I'd underscore shareholder value. to to share four like continued commitment which our updates unlocking

First, significant as planned, amount formally commercial consumer while unlocking divestitures last opportunity positioning our core immediately we us a and closed value, we on focus ADT's of business. on to continued spoke, strength in the since

price billion closed As previously transaction or purchase just over X a the announced, XX.Xx $X.X successfully EBITDA. for of on October

action overhead footprint to in a we've improve business. We're Second, the taken decisive moment. restructuring streamline to infrastructure rationalizing aggressively and more share on solar I'll the profitability. solar this by our

quarter, our Last Third, we to reduction efficiencies that operating $XX focus had be we continue of in million through business. identified cost this cost year. to highlighted we on eliminated

XXXX significant identified $XX these a be year in run million of our additional million, reduced for the of in system. the backs. structurally further have wind cost $XX million rate We an to impactful cost $XXX total of foresee of over at to our savings We amount of a full savings

million enabled to Xx. continues nimble year. to be And approaching successful an expected The ADT strategies more the of proceeds from as at and year continuing ratio, leverage finally, the on net billion has unfold our reducing larger the it both from macroeconomic our end environment commercial additional to $X.X using to execution we of an are transaction hand this $XXX net these downward trend, debt cash

our itself e-commerce to expansion through market continuing To exceptional and sales convenient of addition to resilient redefine remains in-home The grow continues residential consultation. small channels the our to capitalize, and include security home business offerings. and new smart and options we're in

as have peace and will seeking ADT continue innovating provider even pricing related position we and convenience bundle service alternatives, us the offer of and preferred mind security. reevaluated of to home are which consumers and we the who the We the are way products, for more

which caused on And new have actually while to catalyst many have these higher homeowners benefited continued home rates security base to mortgage be delay incremental and customer and would historically customers. our offerings in retention with are high relocating, we customers, smart a for focused existing providing

the in teams deliver technologies Our product to are and working new coming offerings months.

desire tech-enabled feel technology of consumers and fingertips. and grown devices and formation household driven confident generations living These continued the have the Gen that millennials up for and by Longer we smart living at wave safe experience. term, a the support need their Z will with

to it is secure second smart live to for expect home. them and a nature in So

are catalysts premier of objective provider home solutions. smart There several our being of supporting the

innovation our First, of platform which as differentiators. development we on are product ADT+ delivering we our emerge SMART with the unique and offering will believe and monitoring,

will product this quarter. of launch later this controlled begin Our

for the service current our customers. product innovation foundation and our future lays and Developing future to platform incremental offerings and own

home. product Additionally, revenue, number of devices our remains increase smart approximately our to is of partnership driving improve wallet expanding home helping rates which take and help per increase Larger, to home. our and device $X,XXX systems Google connected the offering, Nest home higher our per more share installation translate the in

Doorbells through rates also impressive see remain video of We new on Nest for rates continue ADT+ customers. and XX%, DIY take integrated approximately attachment our in to experience

achieved admirable ratings ADT+ the iOS the While App early, stars. an app Store X.X in

customer years devices, record ahead. greater to stickiness and of revenue have many for we're producing As our frequent and customer a delivering higher measures the strong attrition more system unlock leading usage the and a correlation and to upsell reminder, by RPUs payback these provided

continue Farm to high and optimize we State customer and the learn opportunities and just first still seeing few of different for to with Farm full homeowners extrapolate, State and trends early expanded states, We've to Though which used continues ramp we're buy our to and markets XX positive has offer to our Our approaches, very offers recently ahead expected schedule. satisfaction. test colleagues. is

early We're approximately system. customers a pleased One is of additional upsell is of purchasing thesis see the central the to to customers and packages. points, more transacting hardware which services to ability robust our proof ADT's are to X/X

I'd circle update. like back the earlier, portfolio to mentioned As now to solar

solar which disappointed We lived to has our not have our performance, been up by expectation.

our solar In address the addition restructure our to To infrastructure we plan, navigating industry footprint. pressure part solar we've itself the steps rationalizing streamline to business, business of operating And navigate our taking which immediate focusing solar higher see to accordingly. challenges, lender this markets action as this behavior rates, top-performing to and impacting on continues the taken overhead of interest the and consumer practices. and from changing landscape, are and is

in reducing be XX% X XX with branches will states representing, approximately XX states, to in branches our We branches the of current revenue. remaining from XX

us In product third-party these offering promising The in small include owned size, some systems. remaining with helps offering with Albeit higher-performing to sample leased been over product geographies, we expanding of encouraging. more third-party-owned compete we're our several states or our markets. in XX% This are in mid-October these effectively has incrementality. a to product lease share of launch seeing

impact financial and sizable restructuring of the results. to expect be financial overall beneficial We actions to these

considerable XXXX attracted to to we our in well We at which turn show to just and flows these chain solar remain half. We in changes estimate internally X% second positive supply partners. half the as improvement the to cash announced solar expect the annually. space, We growing first of as approximately

that the plan we'll next in evaluate including available. be we of However, and of of QX in the alternatives time, performance, the restructuring particular, At the year. to our results our lease success forward, evaluating path offering branch strategic

to to financials. like our quarter I'd turn third Finally,

to the XX% adjusted our ending while cash book quarter X%. continue and a over core solid year-to-date post growing growth flow, year-over-year our for We free interest monthly with including performance XX% swaps, very recurring in revenue business by in

by was small revenue in in the billion, with Adjusted was approximately and year-over-year X%, segment. flat increasing revenue CSB this Total up with X%. EBITDA revenue consumer growth line with in $X.X business

than over the record trend income adjusted Our We a of quarter $X.XX, our monthly of more year quarter $XXX continuing ago. ended EPS year, versus RMR year-to-date prior balance recurring or double with a since million. positive adjusted revenue net each was

from at with low ago, years at Our XX.X%. a revenue year down a years remaining now stands attrition payback record X.X gross X of

in we our to feel focusing with strong future dovetailing summary, cash model our With continue sheet a industry-leading structure. we ADT. make capital streamlining and customer scale, strong and experience, and business continue In to and premium bullish progress the balance of recognition brand about flow,

associates safe. with of All of happy, healthy by who work to keep and great and ADT's and team dedicated driven partners this customers determined is purpose

you thank sincere a So to everyone.

I'll now call Ken over CFO, Porpora. turn our to the

Kenneth Porpora

recent range third first and quarter to finally Thank for everyone you, provide year today. for on update on balance XXXX. an updated Jim, the then joining guidance improvements, thanks focus sheet performance full provide an financial our and I'll our exciting and call

on business in third As Jim consequently reflect discontinued unit mentioned, divestiture as quarter have recast operations October business to commercial our well historical we as this financials historically. our X closed on as the and

primarily otherwise As continuing operations company to the referring business, will noted. we be the the we discuss unless of

Total X% a the quarter. $XXX company RMR revenue average was recurring year-over-year our And from was $X.X strong to outcome retention billion of monthly for customer record subscriber higher an CSB million, up and pricing. for base and our revenue or

growing gross RMR balance, remained XX.X%. attrition Within at the

flow, growth from is XX%, share. CSB to very prior EBITDA, Adjusted X business. solar per the this quarters lower XX% our forward the investment prior EBITDA same approximately $XX on Adjusted growth income year in look and the Year-to-date, was was on net XX% SAC gross in $XXX point losses with $XXX including million, hit to adjusted adds. up offsetting quarter for of in flat quarter $XXX We some ago in $X.XX operating swaps, or the up cash versus million measure Adjusted solid was inflection adjusted black. million year. the income improved interest free margin net of remaining million, and versus efficiency in

at has by positive to The upgrade a earlier upgrade this use our sale rating now business of were debt net the with We year. a proceeds our commercial corporate leverage ratio pleased accelerated after S&P Moody's from credit of our receive by X.Xx. reduction similar

mentioned, Jim below. anticipate net decrease leverage we towards the Xx or to continuing As ratio

for Shifting to segment highlights quarter. the

or SAC Demand Google CSB, Our X% Nest billion quarter, third adoption remained a which just about Success continued virtual prior $XX of and and fitness Small revenue X% segment, within for cost of of year receipt for driven our the driving eradication, revenue years years by improvement Google an strong, CSB payback has from X.X Consumer service funds. ago. aggressive by in X a increased million EBITDA is accelerated efficiency and the total or increased $X.X adjusted products CSB quarter, record year. revenue, and up delivered versus Business,

larger, revenue a or achieving in our Investor back stated well we We're to XXXX. this proud goal, shared March flow take accelerate macro home. which by results. our the to to of extremely is Day continue X helping achieve that choose installation XXXX, higher to payback help to years At of customers of to our backdrop, to goal per metric ahead connected home cash more increase systems, below with device which our translates revenue Even rates

also seeing with customer app ADT+ products. self-setup support this which launched ADT's We're year, for earlier internally-developed Google's strong Nest our integrates

received We working fund. continue the we being and of This campaigns, through Success next tranche are our is drive unlock to by collectively to these of Google $XX funded Success have partially awareness products funds. which the marketing year, million

track install partnership solution, accelerate with integrated begin Pro a We phased for expect Google rollout quarter. our on even to which to is more this our

We cost the efficiency $XX million $XX reductions our efforts great and cost are last progress goal achieve year, this track on mentioned quarter. on in to surpassing making are million

benefits satisfied of all continues cost we see those currently to Program, high being efforts, tickets, Assistance customer which reduction satisfaction, roughly to drive service XX% ADT addition level from with continue Virtual In the to of virtually.

milestone new August million XXXX, jobs month. launched in virtual we more in X.X inquiries a program over the service July with closed And XXX,XXX have in achieved We completed virtually. of than a since now

our Assistance Program. or and ROIs WiFi app the any through tool impacting increase out allows other this experience, ADT and customer WiFi rolled diagnose This address we devices. service Virtual Fix to agents also customers' To customer issues ADT equipment

taking million. of are we're the As million our $XX streamline reduced geographic with revenue an we and action business. EBITDA quarter, the costs Jim than In to acquisition million reduction, Solar business. $XX Solar and to of the solar the more cost loss of posted adjusted addressed, segment continues customer Through footprint annualized from pressures, face third ADT removing decisive $XX

was eliminates been deterioration with segment, In our result macroeconomic the a EBITDA. and excluded and from remaining which This adjusted challenges a $XX conditions the for Solar industry noncash charge of Solar goodwill quarter, balance. and continued we has business goodwill charge of million continued of took associated the the

balance to sheet flow. Turning and cash

which up efficiently mentioned, free payback. flow, divestiture discontinued in and driven prior SAC I versus debt As includes XX% by the from improvement proceeds was quickly accelerate adjusted year, briefly reduction efficiency revenue operating the interest CSB in swaps increased operations, cash our to goals. including used quarter profitability from We $XXX million, commercial the record-low and

reason, are this we that cash the of not change For foresee do reiterating commercial dramatic our divestiture post we in the flow interest given a cost. reduction

why including of focus flow, our swap financing now as primary The rate swaps. of XXXX, of cash until a the is reported free reminder, we is the section swaps our fixed statement. in As timely impacts. cash fully debt a on benefit our result This interest flow these are

billion debt. at have on basis down $X.X These actions trailing leverage approximately our ratio redeemed end of X.Xx reduced from X.Xx we of to net a Year-to-date, XXXX. current the

agency maturity Not with to approximately years. entered XXXX. reduce we a Term borrowing B we costs, $X.X we were now at Furthermore, our billion debt only significant two XXXX of from for have Loan financing our maturity refinance rating maturities to extend able several markets the our the no upgrades and backs, to

holders Additionally, XXXX $XXX we down our billion. to an year-end, debt reduction million notified by additional of debt approximately April that to our we this XXXX total debt have $X pay bringing maturities intend

in $XXX initiatives, interest reduction With these we significant million. a in over benefit from by balance expense will sheet XXXX

of is cost debt until approximately X% XXXX. average Our

as After and yield deploy, attractive using to growth capital line to returns; maximizing capital net repurchase of debt of to divestiture sight our finally, and priorities continuing such down debt to CapEx and allocation and stock from commercial pay and are as proceeds capital with dividend objective excess deployment leverage pay shareholder alternatives ratio; policy first, second, down significantly exploring achieve our additional to the an returns. optimal funding follows:

outlook qualify with sale the to interest of not Today, reflect the performance. year our close specifically modest items that to timing of our commercial reallocated I'll the did our and well year. updating operating of providing full for adjustments, cost expected are updated remainder impact as accounting XXXX. operations, a The savings onetime related as have for in discontinued certain we business for negative guidance is

business, at strength expect underperformance a from front, $X.XX now range the to billion total revenue revenue primarily implies due growth midpoint. by the On for solar to $X.XX up to offset billion. in core range X% rate our the we This full year CSB

adjusted We efforts. range ongoing the rate reflecting year cost $X.X expect of CSB range in and $X.XX billion X% efficiency an to growth our EBITDA midpoint, at a implies full billion. of This management

the forecasting XXXX. are year adjusted for share We $X.XX $X.XX $X.XX per for versus of earnings to

million midpoint. We million. of to benefit also $XXX including earnings free share EBITDA segment date expect $XXX flow million include these unlike expected cash or flow Commercial cash per measures, to adjusted adjusted the Remember, $XXX be million and cash the flow, free of of approximately from rate to sale. swaps, is growth cash the And interest adjusted $XXX XX% our at revenue, of guidance, through the adjusted

grow to we our look characteristics our As well and the business position allocate be invest incremental healthy to we in balance of to the future as given our maximize sheet shareholder cash a acceleration expect have in forward, and business, both flow to improvement value. as capital of prudently

Jim it now for I'll some closing turn back comments. to

James DeVries

adjusted flow cash new investment Xx net $X growth the with growth, return medium-term for mix I'd free proposition our EBITDA internal approximately plus, in including like CSB growth, remarks of our businesses, growth revenue XX% market interest close to adjusted of with flow our revenue subscribers reiterating annual cash opening for leverage ratio of target XXXX. ADT's and less Ken. lines of rate end free than adjusted Thanks, billion with exceeding and of by by line framework, adjusted through swaps

the open please up Thank questions. call you. Operator, for

Operator

question the Our from Citi. with first line Peter Instructions] comes of [Operator Christiansen

Peter Christiansen

likely bit Jim, that considering I a quite fragmented. rationalization solar more a an is a wanted industry-wide in here. lot we mean there's dig to bit little know business been I industry the into of

could of competitive what I things relative you we of larger to thoughts demand position your players would see ADT's imagine were this what position curious and be the downsizing, even in if a Just back. if normalize. are would strength, with on some were to come be of solar

Just your curious thoughts on there.

James DeVries

Absolutely. question. the for thanks and Pete,

to to be that later. The going slow a industry consolidation. I ability tough think we some market, there's fast now to think going improved go is withstand by

have XX going said XX unimportantly, we or XX. represent revenue. restructuring XX our pretty But from call, on branches those branches to major not As of the XX% we a down

because and And or have have watching And closely, That's we've we been of the results we the interest the the hurt loan that like TPO SunPower. that others with now the product, lease we're rates product. Pete. partnership

to the And our get closely this in turned So our team from very plan restructuring, out and there. review on sales TPO on path figure again. to sales we'll is ability focus the the QX as a execute and

Peter Christiansen

a certainly. opportunity and That the lot was initial it for cross-sell acquisition of I on the just certainly seems cross-sell, guess, great interesting certainly paper, opportunity. the like sense. follow with, rationalization want makes a to I And SunPower was up

tough any that evidence against that market mean, Just you curious, to for been a have granted I just thesis? goes contrary we've the curious, this cross-sell in very business, seen

James DeVries

rates double at of a a were year of they tell And acquired give are, Yes. we and that this a that It's take, bought the back the product. because we the Interest acquisition. difficult loan company time we a was half what -- was last or to company loan little product had bit cash. or either year

thesis, of kind test years XX determine. looking X this or product doesn't just or loan cross-sell Pete, little to at when or super wasn't the periods for you're it's of A been built interest works out. product or a bit whether is tough because So rate just environment. the difficult not And pencil to X payback longer,

TPO with going cross-sell. better get around to at bat some into some the product we're insight the So thesis deal get swings the and

the home, we're the for that I'll if on to say ability the front, thesis was value aspect national us I'd consolidation pretty trust of and for ADT our as good, mention And of us Essentially, also occurs second smart is energy? leverage brand. brand more customers a will a smart feeling they trust quickly on basis. deal especially

Peter Christiansen

super That's helpful.

Just one last sale expect the of at attractive or up curious to commercial and on removal item, working certainly an the housekeeping Ken, I Just commercial just again impact type any congrats the curious, should multiple. the down? business capital with was there. of business of we

Kenneth Porpora

significant, Pete. Nothing

As interest receiving, savings $XXX million anticipated the we we that savings mentioned, we're XXXX. had of in

or to So overall, we get released with offset with divestiture the cash flows equal than interest the more other savings. the that

So immaterial, capital within working pretty Pete. front, that on the

flow So that given have X. significant the we started look the actually the to forward October essentially savings we'll we same we're interest on deal, -- we'll had start that prior -- cash to

Operator

question comes the line from with Sachs. next Our of Tong Goldman George

Keen Fai Tong

outlined expect various to much also actions? is the various of In revenue ADT on other a about growth And industry? an by performance improve company solar more how performance little and when initiatives you broader these addressable words, how the you to to actions Can You your the talk growth? have solar. in with solar performance compares specific operating bit impact

James DeVries

Yes.

the for It's Jim. thanks George. -- the question, On

close the sales that for On much comparison the sit the neighborhood something or side they thing interact a to take, close we was point interest experiencing has were, today, opportunity conversion the at market is of an loan the are. a A rate, to to with the customer rates sit is XX%. rep the when in of when of are kitchen you, this equation, half very same what give table

low low. Now utility where some it's single prices markets, digit. And in single digit, are

Pete which doesn't business. with success what moment to lease every in I in and cross-selling single on we're a it's to as in shoots. mentioned early the eye we we work the So launched, product. is very, restructuring. going It our execution signs some lease market, the very to the have we're -- going green see close measure our We're the selling but some product, lease markets And ago, of closely keep product a positive

measure on our As know, you And below go-forward expectations. some January we'll -- in path decisions and progress then. been it's well and make the measure reconvene

Kenneth Porpora

wanted George, to one as remarks, it's add something to the I Ken. want just thing. in on I had prepared We George, hit that well.

we quickly anticipates being in the that the as that this winding far wind-down the half are of here. positive second branches discussed business timing, about year, that in down the we Solar cash on As flow talked pretty the we

backlog So but the is we customer the the of course, make wind-down is markets satisfy existing will, in strong, to soon. those experience sure

reducing the So to in of rate that looking we next half flow our started first earlier. to and burn on year of cash turn then forward the essentially remarks quarter discussed kind prepared positivity, we

Keen Fai Tong

on That's the costs Got provide how affecting residential? up? businesses? commercial is sale was How with that update intertwined the be then to And you Can Any stood have helpful the remaining color. completed ago. functions stranded month commercial operationally or about it. an divestiture additional you a

James DeVries

the semi-autonomously. Yes. Great business ran George. question, The business commercial --

operated closely. and in -- now, the where shared shared for are independently. the There The the is shared in services, we business Right transition is are folks, in XX services lasts And so sales months. a we're no largely about support buyer. shared main That there there no place, stranded to service agreement some costs things. were watching providing

of services a couple Some just are months.

XX Some months. last as as long

And we'll hard of and to once the taking be provide completed is we've our look and TSA met it. a cost majority support, that at eliminating stranded obligations

Kenneth Porpora

it Jim that slight, very again, kind business there, given and consumer segment. was The autonomous the sorry mentioned overlap, commercial its And George, to cut between on off buddy. -- you of specifically TSA on the was

the of business, additional next for the charge about we'll think years. which you service offset mother And ship, over left the if that fees stuff mentioned providing cost pull and time, now that So the that out. couple time we're commercial Jim over the they'll the has over we'll frame

what's of that So of more cost as of we function service that kind the release and rightsize at impact immaterial the to service as see we going as service of business, revenue, as up commercial we and look kind the back the the business. forward we and

Operator

comes Toni line Morgan of Stanley. the Kaplan from Our with question next

Toni Kaplan

to I clarification wanted a First, just ask solar the on restructuring.

You keeping of branches, about XX revenue. mentioned the was and that XX%

missed Sorry it, did also of purposes. how the if you loss Just give get remaining was in I associated branches? the wanted but to much with modeling XQ EBITDA that for our

Kenneth Porpora

Toni, pulled and it's What $XX give did cost annualized Ken. those we out corporate. from of we've million is essentially reduction from branches

of you about run if of kind existing think So and the quickly. we rate have of to million seen, kind pretty pulling out you've that rate line of sight $XX run results annualized

is connected dots hey, sorry, first wind reduction the positive million the that then But cash we corner -- second we turn So half with, to of down we corner. turned flow see $XX strict that's those the solar. cost kind to of the why And for turn half, the related starts free branches.

Toni Kaplan

deal Great. X% focus have sort much with of to about extra the because on how the thinking you there. Or that sustainability just And year. the as impacting you're this Or level? issues maybe CSB you talk if about macro you're Could solar that? won't sort growth of at midpoint about of then 'XX for maybe is it talking

the part? CSB for So wanting line that to top growth just sustainability talk about of X%

Kenneth Porpora

Ken. Toni. I'll as a give one this well. It's Sure, shot

actions CSB solar. to the on in give guidance for So the the color given we tried

that's why the So of X%. gave we midpoint the

a on XXXX. guidance, kind in absolutely given guide on years. was we our our X But the overall next of haven't Page We X medium-term X We will to give and prepared did earnings for remarks deck call.

market see consumer the We see growth or with CSB for market to we the So business mid- the in growth. X% revenue around growth. line business

about of kind how a you we're that thinking feel of revenue growth. gives So

it's was the related our we also operation Farm that states about, of CSB as to activating prepared and in It more guide. number that growth remarks and activating have into we activating State to initiatives a that, catalyst other And other another and XXXX platform his Jim specifically, about the talked it's our for see activities growth attaching more whether the And with consistent but continuing ADT+ there. business, activate expanding catalyst. pretty innovation we've the to well whether in talked -- more that

So we're about ourselves at that if a gives of you thinking we're the specifically today, market. X% feel kind versus of how

Operator

question Capital Our Instructions] Markets. next of RBC line Ashish from with the comes [Operator Sabadra

Ashish Sabadra

If you headwinds this don't a on wanted to solar solar. would the flow the about mind, And way about impact free free the from just cash drill the So is to I is have to to there itself. flow the excluding impact down much negative further how a solar cash think in way year? of think what been

Kenneth Porpora

feel, a you give can I Ashish.

year we've business. solar for far, under EBITDA, in So for -- just we're $XX months of this million negative the first the X

assume cash flow flow. cash there, EBITDA disclose ballpark solar given don't our we in but free free that entanglement the is the So of exact

that context solar months EBITDA, I put million on million. relates why to to the the $XX it that's dots tried cost restructuring, $XX of taking $XX in, out of So down that million the X we're connect the in

a the mentioned was Jim his script point markets. in higher-performing that we've left key But

So not of only dynamics that do the market but XX or higher-performing X the the those we branches. the take cost, branches are remain out states, in X the the

on So dots a to you bit your connect of the color, model. I think that Ashish, gives

James DeVries

from add, cash One year. us very performing context, tailwind well very thing year And cash loss have in CSB is next losses the significantly business is very now -- a obviously less been significant. Ashish, that another perspective. The for to is have interest for solar we'll this just expense, that

more would turn been the bridge in realistic, a this for year of billion just much our not billion year which And kit in much for closer have bridge an solar. losses solar it part so cash to a XXXX a absolutely and a cash $X the exceptional turn our putting us losses significant, XXXX. in getting cash putting been kit, in to that XXXX, $X simply makes Had a is on

Ashish Sabadra

was business we year trying the and optionality. flow I that's think so about these that to issues that's normalized you No, free in next cash very the what the business Yes. get or better exclude strategic helpful we understand turn around when color. is to Actually, as

forward just Maybe you're the as and your was that ruling success just time and the the given perspective trending from having in you're also should success of line -- thinking I so country? partnership expectations out to Farm about we going having and across Things particularly on a the it follow-up, the the how ahead and hardware you've how had about focus services. success selling far, that wanted you are wondering, think State that are -- there. from additional that

James DeVries

you, Thank Ashish.

So the integrated of Everything our the between deal from this been There's State in project outstanding. an is to accomplished. last do. has regulatory We call, vision, We're partnership. I about mentioned intangibles very on great chemistry are feel customer-focused teams Farm, all shared a work great A deal product, now cultures. positive. the states. XX insurance great

XX year in XX the plan more of XXXX. the think I for next to is states in preliminary range

install And the unimportantly, Ken smart not able We're a about of about I policies systems home put to market we're think of these Farm as time offering. State us X,XXX one will up that included the sold in in of broader we to that security upsell the prepared think remarks, X/X now. with XX% and I overlap to in systems, force.

the at had into was they are the would time living the economics partnership So created. we hoped what

get adds, net-net, little more anxious about to on they're feel but traction a terrific a good subscriber partner. So it,

Ashish Sabadra

congrats results. and on That's great solid color,

Operator

call remarks. Thank questions back are team you. for so this time, I management There will pass the closing at waiting the any no to

James DeVries

join Thank us everyone, to taking for thanks, you, today. Jennifer. time And

CSB business our plans with year to improved morning, we'll is segment, be this a activated address doing the and heard our sheet. exiting We've balance Solar you much well. As

we're So and the great today, -- XXXX and for close eager out to begin. year appreciate everybody's to time We a have strong for day.

ADT (ADT) 2 Nov 232023 Q3 Earnings call transcript