Investor Relations

    Ascent Capital Group Announces Financial Results For The Three Months Ended March 31, 2014

    by Moni Blogger | May 09, 2014

    Englewood, CO – May 8, 2014 – Ascent Capital Group, Inc. (“Ascent or the “Company”) (Nasdaq: ASCMA) has reported results for the three months ended March 31, 2014. Ascent is a holding company that owns Monitronics International, Inc. (“Monitronics”), one of the nation’s largest and fastest-growing home security alarm monitoring companies.

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 1 million residential and commercial customers. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three months ended March 31, 2014 increased 32.7%
    • Ascent’s Adjusted EBITDA[2] for the three months ended March 31, 2014 increased 23.3%
    • Monitronics’ Adjusted EBITDA[3] for three months ended March 31, 2014 increased 28.6%
      • Monitronics subscriber accounts as of March 31, 2014 increased 27.9% to 1,046,785
      • Average RMR per subscriber[4] as of March 31, 2014 increased 3.5% to $41.15
    • Management completed the transitioning of Security Networks’ operations from Florida to Texas in April 2014

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “We are pleased with Monitronics’ solid financial performance and the successful completion of the Security Networks integration, which was finalized in April.”

    “At the holding company level, our balance sheet remains strong and we continue to pursue productive and accretive investments in the alarm monitoring industry and adjacent sectors, while being opportunistic about share repurchases.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “During the first quarter Monitronics revenue increased 32% while Adjusted EBITDA grew a solid 28%, despite severe winter weather that periodically affected our dealers across the country. Total subscriber accounts were up 28% over the first quarter of last year and our attrition level increased modestly from 12.2% to 12.3%, and was unchanged from year-end.

    “The first quarter also included the ongoing Security Networks’ integration and, due to the strong efforts of our operating team, on April 24th we successfully completed the transition of all Security Networks accounts to be serviced and monitored out of our call center in Dallas. We originally projected that operational efficiencies from the combined business would drive $4-6 million in annual cost savings, and we are on track to exceed those estimates. We are excited about where our business stands and its future prospects.”


    Three Months Ended March 31, 2014 Results

    Ascent Capital Group, Inc.

    For the three months ended March 31, 2014, Ascent reported net revenue of $132.9 million, an increase of 32.7% compared to $100.2 million for the three months ended March 31, 2013. This increase in net revenue is primarily attributable to increases in Monitronics’ subscriber accounts and average RMR per subscriber, which were both driven in part by the August 16, 2013 acquisition of Security Networks.

    Ascent’s total cost of services for the three months ended March 31, 2014 increased 45.3% to $22.1 million. This increase is primarily attributable to Monitronics’ subscriber growth over the last twelve months, as well as increases in cellular and service costs, as described in more detail below. 

    Selling, general & administrative (“SG&A”) costs for the three months ended March 31, 2014 increased 34.5% to $26.5 million. The increase is primarily attributable to increases in Monitronics SG&A expenses as well as the inclusion of Security Networks SG&A of $3.9 million for the three months ended March 31, 2014. The increase in Monitronics SG&A is partly attributable to redundant staffing and operating costs at our Dallas, Texas headquarters and integration costs incurred in advance of transitioning Security Networks’ operations from Florida to Texas.

    For the quarter, Ascent’s Adjusted EBITDA increased 23.3% to $87.9 million. This increase is primarily due to revenue and subscriber growth at Monitronics.

    Ascent reported a net loss from continuing operations for the three months ended March 31, 2014 of $9.4 million, compared to net income of $2.3 million for the same period in 2013.

    Monitronics International, Inc.

     

    For the three months ended March 31, 2014, Monitronics reported net revenue of $132.9 million, an increase of 32.7% compared to $100.2 million for the three months ended March 31, 2013. The increase in net revenue is attributable to a 27.9% increase in the number of subscriber accounts and a 3.5% increase in the average RMR per subscriber to $41.15 as of March 31, 2014. The growth in subscribers reflects the Security Networks acquisition in August 2013, which included over 200,000 subscriber accounts, as well as the acquisition of over 135,000 accounts through Monitronics’ authorized dealer program subsequent to March 31, 2013, and the purchase of approximately 18,200 accounts in bulk buys over the last 12 months.

    Monitronics’ total cost of services for the three months ended March 31, 2014 increased 45.3% to $22.1 million. The increase for the three months ended March 31, 2014 is primarily attributable to subscriber growth over the last twelve months, as well as increases in cellular and service costs. Cellular costs increased due to more accounts being monitored across the cellular network, which often include home automation services. This has also resulted in higher service costs as existing subscribers upgrade their systems.

    Monitronics’ SG&A costs for the three months ended March 31, 2014 increased 44.5% to $23.0 million compared to the prior year period. The increase is primarily attributable to subscriber growth over the last twelve months.  Increased SG&A costs are also attributable to redundant staffing and operating costs at Monitronics’ Dallas, Texas headquarters and integration costs incurred in advance of transitioning Security Networks’ operations from Florida to Texas. Integration costs for the three months ended March, 31, 2014, were $1.1 million, which primarily relate to professional services rendered. 

    Monitronics’ Adjusted EBITDA for the three months ended March 31, 2014 was $89.3 million, an increase of 28.6% over the three months ended March 31, 2013. The increase is primarily due to revenue and subscriber growth at Monitronics driven by accounts acquired through Monitronics’ authorized dealer program, the acquisition of Security Networks and bulk account purchases over the last twelve months. Monitronics’ Adjusted EBITDA as a percentage of revenue was 67.2% in the first quarter of 2014, compared to 69.3% for the three months ended March 31, 2013.

    Monitronics’ reported a net loss for the three months ended March 31, 2014 of $7.9 million compared to net income of $1.3 million in the prior year period.

    The table below presents subscriber data for the twelve months ended March 31, 2014 and 2013:

    Twelve Months Ended
    March 31,

    2014

    2013

    Beginning balance of accounts .............................................

    818,335

    706,881

    Accounts acquired ...............................................................

    357,855

    206,665

    Accounts cancelled ..............................................................

    (118,688

    )

    (92,696

    )

    Canceled accounts guaranteed by dealer and acquisition adjustment (a) (b) ..............................................................

    (10,717

    )

    (2,515

    )

    Ending balance of accounts .................................................

    1,046,785

    818,335

    Monthly weighted average accounts .....................................

    962,527

    759,180

    Attrition rate .........................................................................

    (12.3

    )%

    (12.2

    )%


    (a)  Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)  Includes 2,064 subscriber accounts that were proactively cancelled following the acquisition of Security Networks in August 2013 because they were active with both Monitronics and Security Networks.

    During the three months ended March 31, 2014, Monitronics acquired 31,774 subscriber accounts. Acquired contracts for the twelve months ended March 31, 2014 include 203,898 accounts acquired in the Security Networks acquisition, which was completed on August 16, 2013.  In addition, subscriber accounts acquired for the twelve months ended March 31, 2013 include approximately 93,000 accounts purchased in a bulk buy on October 25, 2012. 

    Monitronics’ trailing twelve month attrition for the period ending March 31, 2014 was 12.3%, compared to 12.2% for the period ended March 31, 2013.

    Ascent Liquidity and Capital Resources

    At March 31, 2014, on a consolidated basis, Ascent had $189.5 million of cash, cash equivalents and marketable securities, of which $26.7 million was used to fund Monitronics’ semi-annual interest payment on its Senior Notes on April 1, 2014.  A portion of these assets may also be used to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the three months ended March 31, 2014, Monitronics used cash of $53.8 million to fund subscriber account acquisitions, net of holdback and guarantee obligations.

    At March 31, 2014 the existing long-term debt principal balance of $1.6 billion includes Monitronics’ Senior Notes, Credit Facility and Credit Facility revolver and Ascent’s Convertible Notes. The Convertible Notes have an outstanding principle balance of $103.5 million as of March 31, 2014 and mature on July 15, 2020. Monitronics’ Senior Notes have an outstanding principal balance of $585.0 million as of March 31, 2014 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $905.2 million as of March 31, 2014 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $37.5 million as of March 31, 2014 and becomes due on December 22, 2017.

    Conference Call

    Ascent will host a conference call today, May 8, 2014, at 5:00 p.m. EDT. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 34486038. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through July 8, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 34486038.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, benefits from the integration of Security Networks’ operations, future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Forms 10-K and 10-Q for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

     

    Ascent Capital Group, Inc. (Nasdaq: ASCMA) is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC. Monitronics International, headquartered in Dallas, TX, is one of the nation's largest, fastest-growing home security alarm monitoring companies, providing security alarm monitoring services to more than 1 million residential and commercial customers in the United States, Canada and Puerto Rico through its network of nationwide, independent Authorized Dealers. For more information, see http://ascentcapitalgroupinc.com/ 

    ###

                Contact:

                Erica Bartsch

                Sloane & Company

                212-446-1875

                ebartsch@sloanepr.com



    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net loss from continuing operations for the three months ended March 31, 2014 totaled $9.4 million.

    [3] Monitronics’ net loss for the three months ended March 31, 2014 totaled $7.9 million.

    [4] Calculated as the average recurring monthly revenue per subscriber.

    Ascent Capital Group Announces Financial Results For The Three Months And Full Year Ended December 31, 2013

    by Moni Blogger | Feb 27, 2014

    Englewood, CO – February 26, 2014 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three months and full year ended December 31, 2013. Ascent is a holding company that owns Monitronics International, Inc. (“Monitronics”), one of the nation’s largest and fastest-growing home security alarm monitoring companies.

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 1,000,000 residential and commercial customers as of December 31, 2013. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three and twelve months ended December 31, 2013 increased 39.6% and 30.8%, respectively, driven by growth in the number of subscriber accounts and the related increase in monthly recurring revenue
    • Ascent’s Adjusted EBITDA[2] for the three and twelve months ended December 31, 2013 increased 23.0% and 27.5%, respectively
    • Ascent’s consolidated balance sheet remains strong with $174.2 million of cash and marketable securities as of December 31, 2013
    • Monitronics’ Adjusted EBITDA for the three and twelve months ended December 31, 2013 increased 36.0% and 29.5%
      • Monitronics subscriber accounts as of December 31, 2013 increased 28.8% to 1,046,155
      • Average RMR per subscriber[3] as of December 31, 2013 increased 3.5% to $40.90

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “2013 was another great year for our business. The acquisition of Security Networks, coupled with the continuing growth of the core account base within Monitronics, led to another quarter and year of very strong revenue and Adjusted EBITDA growth. The integration of Security Networks is progressing on plan and the dealer affiliates we added through that acquisition are contributing as expected to our core growth engine. We are very pleased with where the business stands today and are encouraged by the prospects for its continued expansion.”

    “We continue to be very bullish on the residential alarm monitoring business. We like the management team and business we have created, the strong growth we have achieved, and the investment opportunities we continue to see within the sector. We remain committed to pursuing additional investments within the industry that will further strengthen our already scaled position and enhance our growth profile and shareholder value.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “We are pleased with our solid fourth quarter and full year 2013 results as we achieved strong operational execution across all areas of our business. Our high quality portfolio of accounts, supported by the acquisition of Security Networks, continues to perform well with total subscriber accounts up 29% for the twelve months ended December 31, 2013.”

    Mr. Haislip continued, “We remain confident that the residential security market offers attractive growth opportunities and we believe it is a great time to be involved in the industry. Home automation and interactive services are being increasingly embraced by our customers, with approximately 57% of new subscribers signing up for some form of these services in the quarter. As always, we remain disciplined in our approach to managing our business. Our consistent operating performance and the relative predictability of our model give us tremendous confidence in our prospects as we move into 2014 and beyond.”

    Three and Twelve Months Ended December 31, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended December 31, 2013, Ascent reported net revenue of $132.8 million, an increase of 39.6% compared to $95.1 million for the three months ended December 31, 2012. For the twelve months ended December 31, 2013 net revenue increased 30.8% to $451.0 million. The increase in net revenue for the three and twelve month time periods is primarily attributable to the growth in the number of Monitronics’ subscriber accounts and the increase in average RMR per subscriber which were both driven in part by the August 16, 2013 acquisition of Security Networks.

    Ascent’s total cost of services for the three and twelve months ended December 31, 2013 increased 58.3% and 48.3% to $23.2 million and $74.1 million, respectively. The increase for the three and twelve months ended December 31, 2013 is primarily attributable to increases in cellular and service costs at Monitronics. Cellular costs have increased due to more accounts being monitored across the cellular network, which often include interactive and home automation services. This has also resulted in higher service costs as existing subscribers upgrade their systems. Also contributing to the increase for the three and twelve months ended December 31, 2013 was the inclusion of $5.6 million and $8.2 million in Security Networks costs, respectively.

    Selling, general & administrative (“SG&A”) expenses for the three months ended December 31, 2013 increased 36.0% to $26.9 million, and increased 24.5% to $92.0 million for the full year 2013. The increases are primarily attributable to increases in Monitronics SG&A costs as well as the inclusion of Security Networks SG&A of $4.3 million and $6.5 million for the three and twelve months ended December 31, 2013, respectively. The increase in Monitronics SG&A is attributable to increased payroll and other expenses due to Monitronics’ subscriber growth in 2013. For the full year, Monitronics also incurred acquisition and integration costs of $2.5 million and $1.3 million, respectively, related to the professional services and other costs incurred in connection with the Security Networks acquisition. Additionally, for the full year, Ascent’s consolidated stock-based compensation expense increased approximately $2.9 million, related to restricted stock and option awards granted to certain executives of Ascent in late 2012 and throughout 2013.

    For the three months ended December 31, 2013, Ascent’s Adjusted EBITDA increased 23.0% to $86.3 million. For the full year 2013, Ascent’s Adjusted EBITDA increased 27.5% to $304.5 million. The increases in Adjusted EBITDA for both periods was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs. Additionally, the percentage increase in Adjusted EBITDA for the three months ended December 31, 2013 was impacted by a gain on sale of Ascent real estate of approximately $7.4 million recognized in the three months ended December 31, 2012.

    Ascent reported a net loss from continuing operations for the three and twelve months ended December 31, 2013 of $12.6 million and $22.5 million, respectively, compared to a net loss from continuing operations of $585,000 and $25.0 million for the same periods in 2012.

    Monitronics International, Inc.

    For the three and twelve months ended December 31, 2013, Monitronics reported net revenue of $132.8 million and $451.0 million, increases of 39.6% and 30.8%, respectively. The increase in net revenue for the three and twelve month time periods is primarily attributable to growth in the number of Monitronics’ subscriber accounts and the increase in average RMR per subscriber. The growth in subscriber accounts reflects the effects of the acquisition of Security Networks in August 2013, which included over 200,000 subscriber accounts, the acquisition of over 136,000 accounts through Monitronics’ authorized dealer program subsequent to December 31, 2012, and the purchase of approximately 18,200 accounts in various bulk buys over the last 12 months. Average RMR per subscriber increased from $39.50 as of December 31, 2012 to $40.90 as of December 31, 2013. Partially offsetting the increase in net revenue for the twelve months ended December 31, 2013 is the negative impact of a $2.7 million fair value adjustment that reduced deferred revenue acquired in the Security Networks acquisition.

    Monitronics’ total cost of services for the three and twelve months ended December 31, 2013 increased 58.3% and 48.3% to $23.2 million and $74.1 million, respectively. The increase for the three and twelve months ended December 31, 2013 is primarily attributable to increases in cellular and service costs.  Cellular costs have increased due to more accounts being monitored across the cellular network, which often include interactive and home automation services.  This has also resulted in higher service costs as existing subscribers upgrade their systems.  Also contributing to the increase for the three and twelve months ended December 31, 2013 was the inclusion of $5.6 million and $8.2 million in Security Networks costs, respectively.

    Monitronics’ SG&A costs for the three months and twelve months ended December 31, 2013 increased 42.2% to $23.2 million and 28.5% to $77.2 million. The increased Monitronics SG&A costs for the three and twelve months ended December 31, 2013 are attributable to increased payroll and other expenses due to Monitronics subscriber growth in 2013, as well as the inclusion of Security Networks SG&A of $4.3 million and $6.5 million, respectively.  For the full year, SG&A expense also includes acquisition and integration costs of $2.5 million and $1.3 million, respectively, related to professional services and other costs incurred in connection with the Security Networks acquisition.

    Monitronics’ Adjusted EBITDA for the three months ended December 31, 2013 was $87.8 million, an increase of 36.0% versus the three months ended December 31, 2012. For the twelve months ended December 31, 2013, Monitronics’ Adjusted EBITDA increased 29.5% to $305.3 million. The increase in Adjusted EBITDA for the quarter and full year is primarily due to revenue and subscriber growth at Monitronics driven by accounts acquired through Monitronics’ authorized dealer program, the acquisition of Security Networks and various bulk account purchases over the last twelve months. Monitronics’ Adjusted EBITDA as a percentage of revenue was 66.1% in the quarter ended December 31, 2013, compared to 67.9% for the three months ended December 31, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the twelve months ended December 31, 2013 totaled 67.7%, compared to 68.3% for the year-ago period.

    Monitronics reported net losses for the three and twelve months ended December 31, 2013 of $10.3 million and $17.6 million, respectively.

    The table below presents subscriber data for the twelve months ended December 31, 2013 and 2012:

    Twelve Months Ended December 31

    2013

    2012

    Beginning balance of accounts ...............................

    812,539

    700,880

    Accounts acquired  .................................................

    354,541

    202,379

    Accounts cancelled  ................................................

    (111,889)

    (89,724)

    Canceled accounts guaranteed by dealer and acquisition adjustment (a) (b)...............................

    (9,036)

    (996)

    Ending balance of accounts ....................................

    1,046,155

    812,539

    Monthly weighted average accounts .......................

    908,921

    732,694

    Attrition rate ...........................................................

    (12.3)

    (12.2)


    (a)  Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)  Includes 2,064 subscriber accounts that were proactively cancelled during 2013 which were active with both Monitronics and Security Networks upon acquisition.

     

    During the three months ended December 31, 2013, Monitronics acquired 37,341 subscriber accounts. Acquired contracts for the twelve months ended December 31, 2013 include 203,898 accounts acquired in the Security Networks acquisition, which was completed on August 16, 2013, and the acquisition of over 136,000 accounts through Monitronics’ authorized dealer program subsequent to December 31, 2012, and the purchase of approximately 18,200 accounts in various bulk buys over the last 12 months.

    Monitronics’ trailing twelve month attrition for the period ending December 31, 2013 was 12.3% compared to 12.2% for the year ended December 31, 2012.

    Ascent Liquidity and Capital Resources

    At December 31, 2013, on a consolidated basis, Ascent had $44.7 million of cash and cash equivalents and $129.5 million of marketable securities. The company may use a portion of these assets to decrease debt obligations or fund stock repurchases, strategic acquisitions or investment opportunities.

    During the twelve months ended December 31, 2013, Monitronics used cash of $234.9 million to fund subscriber account acquisitions, excluding accounts acquired in the Security Networks acquisition and net of holdback and guarantee obligations.

    At December 31, 2013, the existing long-term debt principal balance of $1.6 billion includes Monitronics’ Senior Notes, Credit Facility and Credit Facility revolver and Ascent’s Convertible Notes. The Convertible Notes have an outstanding principal balance of $103.5 million as of December 31, 2013 and mature on July 15, 2020. Monitronics’ Senior Notes have an outstanding principal balance of $585.0 million as of December 31, 2013 and mature on April 1, 2020. The Credit Facility term loans have an outstanding principal balance of $907.5 million as of December 31, 2013 and require principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $19.5 million as of December 31, 2013 and becomes due on December 22, 2017.

    Conference Call

    Ascent will host a conference call today, February 26, 2014, at 5:00 p.m. ET. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 59199384. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through April 5, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 59199384.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the integration of Security Networks’ operations, future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics International Inc., one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    ###

                Contact:

                Erica Bartsch

                Sloane & Company

                212-446-1875

                ebartsch@sloanepr.com

      

     

    Ascent Capital Group To Report Fourth Quarter And Full Year 2013 Results On February 26, 2014

    by Moni Blogger | Feb 17, 2014

    Englewood, CO – February 11, 2014 – Ascent Capital Group Inc. (“Ascent” or the “Company”) (NASDAQ: ASCMA) will issue a press release to report its results for the three and twelve months ended December 31, 2013 after the market close on Wednesday, February 26, 2014. The company will host a conference call that day at 5:00 p.m. ET in which management will provide an update on Ascent’s operations, including the financial performance of its wholly owned subsidiary, Monitronics International, Inc. and may also discuss future opportunities.

    Participating on the call will be Ascent’s Chairman and Chief Executive Officer, Bill Fitzgerald; Senior Vice President and Chief Financial Officer, Mike Meyers; and Executive Vice President, Mike Haislip. Messrs. Haislip and Meyers are also executive officers of Monitronics.

    To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 59199384. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through April 6, 2014 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 59199384.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics International Inc., one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    ###

    Contact:

    Erica Bartsch
    Sloane & Company
    212-446-1875
    ebartsch@sloanepr.com

    Ascent Capital Group Announces Financial Results For The Three And Nine Months Ended September 30, 2013

    by Moni Blogger | Nov 14, 2013

    Englewood, CO – November 12, 2013 – Ascent Capital Group Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and nine months ended September 30, 2013. Ascent is a holding company that owns Monitronics International, Inc. (“Monitronics”) one of the nation’s largest and fastest-growing home security alarm monitoring companies.

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 1,000,000 residential and commercial customers. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three and nine months ended September 30, 2013 increased 36.8% and 27.4%, respectively, driven by growth in the number of subscriber accounts and the related increase in monthly recurring revenue
    • Ascent’s Adjusted EBITDA[2] for the three and nine months ended September 30, 2013 increased 35.2% and 29.4%, respectively
    • Monitronics successfully completed the acquisition of Security Networks
    • Monitronics Adjusted EBITDA for the three and nine months ended September 30, 2013 increased 35.2% and 27.1%
    • Monitronics subscriber accounts as of September 30, 2013 increased 45.2% year-over-year to 1,041,740 reflecting organic growth and the acquisition of over 200,000 subscriber accounts in the Security Networks acquisition
    • Average RMR per subscriber[3] as of September 30, 2013 increased 6.3% to $40.70

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “I am very pleased with the Company’s performance and execution in the third quarter, highlighted by the successful completion of the acquisition of Security Networks, the integration of which is proceeding as planned.  The Company also delivered solid financial performance with revenue and Adjusted EBITDA each up over 35%, a testament to the continued strength of the Monitronics business model. Looking ahead, we remain committed to identifying accretive acquisition opportunities, making certain that we continue to put shareholder capital to work in an effective and productive manner.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “Monitronics delivered another solid quarter with strong growth in revenue, Adjusted EBITDA, and total subscribers. We remain excited about the Security Networks acquisition and the opportunities ahead. We are working diligently to effectively integrate the two businesses, and remain focused on ensuring a smooth transition for both our dealers and our customers. I am extremely pleased with our efforts to date and believe the combined company will be well positioned for growth in the future.”

    Three and Nine Months Ended September 30, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended September 30, 2013, Ascent reported net revenue of $115.8 million, an increase of 36.8% compared to $84.7 million for the three months ended September 30, 2012. For the nine months ended September 30, 2013 net revenue increased 27.4% to $318.3 million. The increase in net revenue for the three and nine month time periods is primarily attributable to the growth in the number of Monitronics’ subscriber accounts and the increase in average RMR per subscriber.

    Ascent’s total cost of services for the three and nine months ended September 30, 2013 increased 56.5% and 44.2% to $20.2 million and $51.0 million, respectively. The increase for the three and nine months ended September 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and in those having interactive and home automation services, which result in higher operating and service costs. Also contributing to the increase was the inclusion of Security Networks monitoring costs of $2.7 million for both the three and nine months ended September 30, 2013.

    Selling, general & administrative (“SG&A”) costs for the three months ended September 30, 2013 increased 30.8% to $23.9 million, and increased 20.4% to $65.1 million for the first nine months of 2013. The increase is primarily attributable to increases in Monitronics SG&A costs as well as the inclusion of Security Networks SG&A costs of $2.1 million. The increase in Monitronics SG&A costs are attributable to increased payroll expenses of approximately $581,000 and $2.2 million for the three and nine months ended September 30, 2013, and acquisition and integration costs related to professional services and other costs incurred in connection with the Security Networks acquisition.  Acquisition costs recognized in the three and nine months ended September 30, 2013 were $1.0 million and $2.5 million. Integration costs recognized in both the three and nine months ended were $535,000. Additionally, Ascent’s consolidated stock-based compensation expense increased approximately $387,000 and $1.6 million for the three and nine months ended September 30, 2013, related to restricted stock and stock option awards granted to certain executives and directors of Ascent in 2012.

    For the three months ended September 30, 2013, Ascent’s Adjusted EBITDA increased 35.2% to $75.7 million. During the first nine months of 2013, Ascent’s Adjusted EBITDA increased 29.4% to $218.2 million. The increases in Adjusted EBITDA for both periods was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs.

    Ascent reported a net loss from continuing operations for the three and nine months ended September 30, 2013 of $12.5 million and $10.0 million, compared to a net loss from continuing operations of $13.7 million and $24.4 million for the three and nine months ended September 30, 2012.

    Monitronics International, Inc.

    For the three months ended September 30, 2013, Monitronics reported net revenue of $115.8 million, an increase of 36.8% compared to $84.7 million for the three months ended September 30, 2012. For the nine months ended September 30, 2013 net revenue increased 27.4% to $318.3 million. The increase in net revenue for the three and nine months ended September 30, 2013 is attributable to the growth in the number of subscriber accounts and the increase in average RMR per subscriber.  The growth in subscriber accounts reflects the effects of the acquisition of Security Networks, which included over 200,000 subscriber accounts, purchases of over 120,000 accounts through Monitronics’ authorized dealer program subsequent to September 30, 2012, and the purchase of approximately 111,000 accounts in various bulk buys over the last 12 months.  In addition, average RMR per subscriber increased from $38.28 as of September 30, 2012 to $40.70 as of September 30, 2013.  Partially offsetting the increase in net revenue for the three and nine months ended September 30, 2013 is the negative impact of a $2.5 million fair value adjustment that reduced deferred revenue acquired in the Security Networks acquisition.

    Monitronics’ total cost of services for the three and nine months ended September 30, 2013 increased 56.5% and 44.2% to $20.2 million and $51.0 million. The increase for the three and nine months ended September 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and in those having interactive and home automation services, which result in higher operating and service costs. Also contributing to the increase was the inclusion of $2.7 million in Security Networks monitoring costs.

    Monitronics’ SG&A costs for the three months ended September 30, 2013 increased 35.3% to $20.0 million and 23.4% to $54.0 million for the first nine months of 2013. The increased Monitronics SG&A costs are attributable to increased payroll expenses of approximately $581,000 and $2.2 million for the three and nine months ended September 30, 2013, and acquisition and integration costs related to professional services and other costs incurred in connection with the Security Networks acquisition. Acquisition costs recognized in the three and nine months ended September 30, 2013 were $1.0 million and $2.5 million. Integration costs recognized in the three and nine months ended are $535,000.

    Monitronics’ Adjusted EBITDA for the three months ended September 30, 2013 was $77.6 million, an increase of 35.2% versus the three months ended September 30, 2012. For the nine months ended September 30, 2013, Monitronics’ Adjusted EBITDA increased 27.1% to $217.5 million. The increase in Adjusted EBITDA for the quarter is primarily due to revenue and subscriber growth at Monitronics driven by the acquisition of Security Networks, purchases through Monitronics’ authorized dealer program and acquisitions of various bulk buys over the last twelve months. Monitronics’ Adjusted EBITDA as a percentage of revenue was 67.0% in the quarter ended September 30, 2013, compared to 67.8% for the three months ended September 30, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the nine months ended September 30, 2013 totaled 68.3%, compared to 68.5% for the year-ago period.

    Monitronics reported net losses from continuing operations for the three and nine months ended September 30, 2013 of $9.3 million and $7.4 million, respectively.

    The table below presents subscriber data for the twelve months ended September 30, 2013 and 2012:

    Twelve Months Ended
    September 30,

    2013

    2012

    Beginning balance of accounts ......................................................

    717,488

    697,581

    Accounts purchased ......................................................................

    437,860

    106,582

    Accounts canceled.........................................................................

    (106,859

    )

    (84,523

    )

    Canceled accounts guaranteed by dealer and acquisition adjustment (a) (b)..........................................................................................

    (6,749

    )

    (2,152

    )

    Ending balance of accounts ..........................................................

    1,041,740

    717,488

    Monthly weighted average accounts ..............................................

    847,673

    706,752

    Attrition rate ..................................................................................

    (12.6

    )%

    (12.0

    )%


    (a)   Canceled accounts that are contractually guaranteed to be refunded from holdback.

    (b)   Includes 1,946 subscriber accounts that were proactively cancelled during the third quarter of 2013 which were active with both Monitronics and Security Networks, upon acquisition.

    Monitronics acquired 203,898 accounts in the Security Networks acquisition, which was completed on August 16, 2013.  Excluding the Security Networks acquisition, during the three and nine months ended September 30, 2013, Monitronics purchased 37,109 and 113,302 accounts, respectively.  Account purchases for the nine months ended September 30, 2013 reflect bulk buys of approximately 18,200 accounts purchased in the second quarter of 2013. 

    Monitronics’ trailing twelve month attrition for the period ending September 30, 2013 increased to 12.6% compared to 12.0% for the twelve months ended September 30, 2012.

    Ascent Liquidity and Capital Resources

    At September 30, 2013, on a consolidated basis, Ascent had $80.9 million of cash and cash equivalents, $2.7 million of restricted cash, and $145.9 million of marketable securities on a consolidated basis. The company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund potential strategic acquisitions or investment opportunities.

    During the nine months ended September 30, 2013, Monitronics used cash of $174.5 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At September 30, 2013, the existing long-term debt principal of $1.6 billion includes Ascent’s Convertible Notes and Monitronics’ Senior Notes, Credit Facility, and Credit Facility revolver. The Convertible Notes have an outstanding principal balance of $103.5 million as of September 30, 2013 and mature July 15, 2020. Monitronics’ Senior Notes have an outstanding principal balance of $580.0 million as of September 30, 2013, which includes the impact of eliminating $5.0 million in aggregate principal amount of the Senior Notes that were purchased by Ascent in the third quarter of 2013, and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $909.8 million as of September 30, 2013 and requires principal payments of approximately $2.3 million per quarter with the remaining outstanding balance becoming due on March 23, 2018.  The Credit Facility revolver has an outstanding balance of $25.6 million as of September 30, 2013 and becomes due on December 22, 2017.

    On October 25, 2013, Ascent purchased 351,734 shares of its Series B common stock (the “Purchased Shares”) from Dr. John Malone, for aggregate cash consideration of approximately $32.7 million. Following the transaction, Dr. Malone continues to beneficially own 351,734 Ascent Series B shares and 199,789 Ascent Series A shares, which together represent approximately 21% of the Company’s outstanding voting power. The Purchased Shares will be cancelled and returned to the status of authorized and unissued.

    Conference Call

    Ascent will host a conference call today at 5:00 p.m. ET on November 12, 2013. To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 86061660. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through November 19, 2013 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 86061660.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the integration of acquired assets and businesses (including the consolidated performance of Monitronics after giving effect to the ongoing integration of Security Networks), future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, Monitronics’ ability to realize synergies associated with the acquisition of Security Networks, Monitronics’ ability to successfully complete the integration of Security Networks, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company that owns 100 percent of its operating subsidiary, Monitronics International Inc. and certain former subsidiaries of Ascent Media Group, LLC.  Monitronics, headquartered in Dallas, TX is one of the nation's largest, fastest-growing home security alarm monitoring companies.

    ###

                Contact:

                Erica Bartsch

                Sloane & Company

                212-446-1875

                ebartsch@sloanepr.com

       




    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net loss for the three and nine months ended September 30, 2013 totaled $12.6 million and $9.7 million, respectively.

    [3] Calculated as the average monthly revenue per subscriber.

    Monitronics International Completes Acquisition of Security Networks

    by Moni Blogger | Aug 16, 2013


    Englewood, CO – August 16, 2013 – Ascent Capital Group Inc. (“Ascent or the “Company”) (NASDAQ: ASCMA) announced today that its primary operating subsidiary, Monitronics International, Inc. (“Monitronics”), has completed the previously announced acquisition of Security Networks, LLC for total cash consideration of $482.9 million (after giving effect to certain closing adjustments) plus 253,333 newly issued shares of Ascent Series A common stock.

    The cash portion of the Security Networks purchase price was funded by cash on hand at Ascent and new debt consisting of $103.5 million of Convertible Notes issued by Ascent, $175.0 million of New Senior Notes issued by Monitronics and an Incremental Term Loan of $225.0 million issued under Monitronics’ existing Credit Facility.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation’s largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    Ascent Capital Group Announces Financial Results for the Three and Six Months Ended June 30, 2013

    by Moni Blogger | Aug 14, 2013

    Englewood, CO – August 8, 2013 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and six months ended June 30, 2013. Ascent is a holding company that owns Monitronics International, Inc. (“Monitronics”) one of the nation’s largest and fastest-growing home security alarm monitoring companies.

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 838,000 residential and commercial customers. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three and six months ended June 30, 2013 increased 22.8% and 22.5%, respectively, driven by growth in the number of subscriber accounts at Monitronics and the related increase in monthly recurring revenue
    • Ascent’s Adjusted EBITDA[2] for the three and six months ended June 30, 2013 increased 25.9% and 26.5%, respectively
    • Ascent’s balance sheet remains strong with $224.0 million of cash as of June 30, 2013
    • Monitronics’ Adjusted EBITDA for the three and six months ended June 30, 2013 increased 23.1% and 23.0%
      • Monitronics subscriber accounts as of June 30, 2013 increased 17.8% to 838,723
      • The growth in subscriber accounts reflects strong performance in the core account generation engine and bulk purchases of approximately 18,200 accounts in May 2013
      • Monitronics average monthly revenue per subscriber as of June 30, 2013 increased 5.3% to $39.98
    • Monitronics’ proposed acquisition of Security Networks, LLC continues as planned; transaction expected to close in mid-August
      • Successfully issued a $103.5 million convertible bond and a $175.0 million high yield bond in July and received commitments on $225.0 million of term loans which will be funded, subject to customary conditions, in conjunction with the closing of the Security Networks acquisition in mid-August
      • Acquisition will result in Monitronics eclipsing 1 million subscribers

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “I am very pleased with the Company’s performance in the second quarter and first half of 2013. Monitronics turned in another strong quarter, delivering over 20% growth in both revenue and Adjusted EBITDA.  I am also happy to report that the proposed acquisition of Security Networks continues to progress as expected. In July we took significant steps towards completing the necessary financing to fund the transaction and we remain on target for a mid-August close.  Looking ahead, we remain committed to exploring additional accretive acquisition opportunities within the alarm monitoring and related security industry.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “Monitronics continued to deliver strong growth in the second quarter. Both revenue and Adjusted EBITDA increased a solid 23% and total subscriber accounts were up 17.8%, on strong growth in account acquisitions through our dealer program combined with 18,200 in bulk account purchases.”

    Mr. Haislip continued, “Our recently announced proposed acquisition of Security Networks will bring our total subscriber base to over 1 million accounts, and position the company very well for continued growth.  Because of its superior operating performance, strong growth profile and impressive and growing dealer affiliate network, we are confident Security Networks will be a strong complement to Monitronics’ existing operations. More importantly, the combination of two very successful home security industry leaders positions us for accelerated growth and ongoing strong profitability.”

    Three and Six Months Ended June 30, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended June 30, 2013, Ascent reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to increases in Monitronics’ subscriber accounts and average monthly revenue per subscriber.

    Ascent’s total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increase for the three and six months ended June 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.  

    Selling, general & administrative (“SG&A”) costs increased 19.3% to $21.5 million for the three months ended June 30, 2013 and increased 15.1% to $41.2 million for the first six months of 2013. The increase is primarily attributable to increases in Monitronics SG&A costs due to increased payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs. Additionally, Ascent’s consolidated stock-based compensation expense increased approximately $692,000 and $1.2 million for the three and six months ended June 30, 2013, related to restricted stock and option awards granted to certain employees.

    Ascent’s Adjusted EBITDA increased 25.9% to $71.2 million during the quarter and 26.5% to $142.5 million for the six months ended June 30, 2013. The increase in Adjusted EBITDA for the three and six months ended June 30, 2013 was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs.

    Ascent reported net income from continuing operations for the three and six months ended June 30, 2013 of $212,000 and $2.5 million, respectively, compared to a net loss from continuing operations of $5.7 million and $10.7 million for the three and six months ended June 30, 2012.

    Monitronics International

    For the three months ended June 30, 2013, Monitronics reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to a 17.8% increase in the number of subscriber accounts, a 24.0% increase in recurring monthly revenue to $33.5 million and a 5.3% increase in average monthly revenue per subscriber to $39.98 as of June 30, 2013.

    Monitronics’ total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increases are primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.

    Monitronics’ SG&A costs increased 23.6% to $18.1 million for the three months ended June 30, 2013 and increased 17.3% to $34.0 million for the first six months of 2013. The increases are attributable to higher payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs incurred in the three and six months ended June 30, 2013.

    Monitronics’ Adjusted EBITDA for the three months ended June 30, 2013 was $70.4 million, an increase of 23.1% over the three months ended June 30, 2012. For the six months ended June 30, 2013, Monitronics’ Adjusted EBITDA increased 23.0% to $139.8 million. The increase in Adjusted EBITDA is primarily due to revenue and subscriber growth. Monitronics’ Adjusted EBITDA as a percentage of revenue was 68.8% in the second quarter of 2013, compared to 68.7% for the three months ended June 30, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the six months ended June 30, 2013 totaled 69.1%, compared to 68.8% for the prior year period.

    Monitronics reported net income for the three months ended June 30, 2013 of $592,000 compared to a net loss of $3.8 million in the prior year period. Net income for the six months ended June 30, 2013 was $1.9 million compared to a net loss of $7.5 million in the prior year period.

    The table below summarizes subscriber data for the twelve months ended June 30, 2013:

    For the three months ended June 30, 2013, Monitronics purchased 47,733 subscriber accounts, compared to the 26,358 subscriber accounts in the three months ended June 30, 2012. During the six months ended June 30, 2013 and 2012, Monitronics purchased 76,193 and 50,532 subscriber accounts, respectively. The account purchases for the three and six months ended June 30, 2013 include bulk buy purchases of approximately 18,200 accounts.

    Monitronics’ trailing twelve month attrition for the period ended June 30, 2013 increased to 12.5% compared to 11.7% for the twelve months ended June 30, 2012.

    Security Networks Transaction

    On July 10, 2013 Monitronics signed a definitive agreement to acquire Security Networks, LLC. The transaction consideration will consist of $487.5 million of cash and 253,333 newly issued shares of Ascent Series A common stock with an agreed value of $20 million. The purchase price is subject to adjustment at closing and is based upon Security Networks delivering recurring monthly revenue (as defined in the acquisition agreement, “Acquisition RMR”) of $8.8 million. The transaction will be financed primarily with new debt at the Ascent and Monitronics levels, as well as an incremental amount of cash from Ascent's balance sheet. The transaction is expected to close in mid-August 2013, subject to customary closing conditions, including regulatory approvals.

    The cash portion of the Security Networks Purchase Price will be funded by cash on hand at Ascent Capital and new debt, which is to consist of the $103.5 million of Convertible Notes issued by Ascent Capital, the $175.0 million New Senior Notes issued by Monitronics and the expected Incremental Term Loan of $225 million to be provided under Monitronics’ Credit Facility.  The Convertible Notes offering was completed on July 17, 2013 with the notes maturing on July 15, 2020 and bearing interest at 4.00% per annum from July 17, 2013.  Interest will be payable semi-annually on January 15 and July 15 of each year. 

    The New Senior Notes offering was completed on July 17, 2013 by Monitronics Escrow Corporation (the “Escrow Issuer”), a wholly-owned subsidiary of Ascent Capital, and the proceeds from this offering have been placed in escrow.  In connection with the completion of the Security Networks Acquisition, the Escrow Issuer will be merged into Monitronics and Monitronics will assume the New Senior Notes.  The New Senior Notes will mature on April 1, 2020 and bear interest at 9.125% per annum, with interest being payable semi-annually on April 1 and October 1 of each year. 

    Monitronics expects that the Incremental Term Loan will be entered into upon the closing of the Security Networks Acquisition.  Monitronics expects that the Incremental Term Loan will mature on March 23, 2018 and will bear interest based on LIBOR plus an applicable margin to be agreed, subject to a LIBOR floor to be agreed.  In addition, Monitronics has evaluated its borrowing capacity subsequent to the Security Networks Acquisition, upon which it expects to increase the borrowing available under Monitronics’ Credit Facility revolver by an amount equal to $75 million.

    Ascent Liquidity and Capital Resources

    At June 30, 2013, on a consolidated basis, Ascent had $84.1 million of cash and cash equivalents, $2.6 million of restricted cash, and $141.4 million of marketable securities on a consolidated basis.  The Company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund potential strategic acquisitions or investment opportunities, including the Security Networks Acquisition.

    During the six months ended June 30, 2013, Monitronics used cash of $113.2 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At June 30, 2013, the existing long-term debt of Monitronics includes the principal balance of $1.1 billion under its Senior Notes, Credit Facility, and Credit Facility revolver. The Senior Notes have an outstanding principal balance of $410.0 million as of June 30, 2013 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $687.0 million as of June 30, 2013 and requires principal payments of approximately $1.7 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $33.6 million as of June 30, 2013 and becomes due on December 22, 2017.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the pending acquisition of Security Networks, the integration of acquired assets and businesses (including the consolidated performance of Monitronics after giving effect to the pending acquisition), the terms of the anticipated amendments to Monitronics’ Credit Facility (including the size of its revolver capacity), future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, Monitronics’ ability to complete the acquisition of Security Networks (including the completion of the acquisition financing), continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.



    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net income for the three months and six ended June 30, 2013 totaled $65,000 and $2.8 million, respectively. Monitronics’ net income for the corresponding periods totaled $592,000 and $1.9 million, respectively.  

    Ascent Capital Group Announces Financial Results for the Three and Six Months Ended June 30, 2013

    by Moni Blogger | Aug 14, 2013

    Englewood, CO – August 8, 2013 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and six months ended June 30, 2013. Ascent is a holding company that owns Monitronics International, Inc. (“Monitronics”) one of the nation’s largest and fastest-growing home security alarm monitoring companies.

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 838,000 residential and commercial customers. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights[1]:

    • Ascent’s net revenue for the three and six months ended June 30, 2013 increased 22.8% and 22.5%, respectively, driven by growth in the number of subscriber accounts at Monitronics and the related increase in monthly recurring revenue
    • Ascent’s Adjusted EBITDA[2] for the three and six months ended June 30, 2013 increased 25.9% and 26.5%, respectively
    • Ascent’s balance sheet remains strong with $224.0 million of cash as of June 30, 2013
    • Monitronics’ Adjusted EBITDA for the three and six months ended June 30, 2013 increased 23.1% and 23.0%
      • Monitronics subscriber accounts as of June 30, 2013 increased 17.8% to 838,723
      • The growth in subscriber accounts reflects strong performance in the core account generation engine and bulk purchases of approximately 18,200 accounts in May 2013
      • Monitronics average monthly revenue per subscriber as of June 30, 2013 increased 5.3% to $39.98
    • Monitronics’ proposed acquisition of Security Networks, LLC continues as planned; transaction expected to close in mid-August
      • Successfully issued a $103.5 million convertible bond and a $175.0 million high yield bond in July and received commitments on $225.0 million of term loans which will be funded, subject to customary conditions, in conjunction with the closing of the Security Networks acquisition in mid-August
      • Acquisition will result in Monitronics eclipsing 1 million subscribers

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “I am very pleased with the Company’s performance in the second quarter and first half of 2013. Monitronics turned in another strong quarter, delivering over 20% growth in both revenue and Adjusted EBITDA.  I am also happy to report that the proposed acquisition of Security Networks continues to progress as expected. In July we took significant steps towards completing the necessary financing to fund the transaction and we remain on target for a mid-August close.  Looking ahead, we remain committed to exploring additional accretive acquisition opportunities within the alarm monitoring and related security industry.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “Monitronics continued to deliver strong growth in the second quarter. Both revenue and Adjusted EBITDA increased a solid 23% and total subscriber accounts were up 17.8%, on strong growth in account acquisitions through our dealer program combined with 18,200 in bulk account purchases.”

    Mr. Haislip continued, “Our recently announced proposed acquisition of Security Networks will bring our total subscriber base to over 1 million accounts, and position the company very well for continued growth.  Because of its superior operating performance, strong growth profile and impressive and growing dealer affiliate network, we are confident Security Networks will be a strong complement to Monitronics’ existing operations. More importantly, the combination of two very successful home security industry leaders positions us for accelerated growth and ongoing strong profitability.”

    Three and Six Months Ended June 30, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended June 30, 2013, Ascent reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to increases in Monitronics’ subscriber accounts and average monthly revenue per subscriber.

    Ascent’s total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increase for the three and six months ended June 30, 2013 is primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.  

    Selling, general & administrative (“SG&A”) costs increased 19.3% to $21.5 million for the three months ended June 30, 2013 and increased 15.1% to $41.2 million for the first six months of 2013. The increase is primarily attributable to increases in Monitronics SG&A costs due to increased payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs. Additionally, Ascent’s consolidated stock-based compensation expense increased approximately $692,000 and $1.2 million for the three and six months ended June 30, 2013, related to restricted stock and option awards granted to certain employees.

    Ascent’s Adjusted EBITDA increased 25.9% to $71.2 million during the quarter and 26.5% to $142.5 million for the six months ended June 30, 2013. The increase in Adjusted EBITDA for the three and six months ended June 30, 2013 was primarily due to revenue and subscriber growth at Monitronics, partially offset by higher operating and service costs.

    Ascent reported net income from continuing operations for the three and six months ended June 30, 2013 of $212,000 and $2.5 million, respectively, compared to a net loss from continuing operations of $5.7 million and $10.7 million for the three and six months ended June 30, 2012.

    Monitronics International

    For the three months ended June 30, 2013, Monitronics reported net revenue of $102.3 million, an increase of 22.8% compared to $83.3 million for the three months ended June 30, 2012. For the six months ended June 30, 2013 net revenue increased 22.5% to $202.4 million. The increase in net revenue for the three and six month time periods is primarily attributable to a 17.8% increase in the number of subscriber accounts, a 24.0% increase in recurring monthly revenue to $33.5 million and a 5.3% increase in average monthly revenue per subscriber to $39.98 as of June 30, 2013.

    Monitronics’ total cost of services for the three and six months ended June 30, 2013 increased 36.9% and 37.2% to $15.6 million and $30.8 million, respectively. The increases are primarily due to an increased number of accounts monitored across the cellular network and having interactive and home automation services, resulting in higher operating and service costs.

    Monitronics’ SG&A costs increased 23.6% to $18.1 million for the three months ended June 30, 2013 and increased 17.3% to $34.0 million for the first six months of 2013. The increases are attributable to higher payroll expenses of approximately $616,000 and $1.6 million for the three and six months ended June 30, 2013, respectively, and increases in professional services expenses primarily related to $1.4 million of Security Networks Acquisition transaction costs incurred in the three and six months ended June 30, 2013.

    Monitronics’ Adjusted EBITDA for the three months ended June 30, 2013 was $70.4 million, an increase of 23.1% over the three months ended June 30, 2012. For the six months ended June 30, 2013, Monitronics’ Adjusted EBITDA increased 23.0% to $139.8 million. The increase in Adjusted EBITDA is primarily due to revenue and subscriber growth. Monitronics’ Adjusted EBITDA as a percentage of revenue was 68.8% in the second quarter of 2013, compared to 68.7% for the three months ended June 30, 2012. Monitronics’ Adjusted EBITDA as a percentage of revenue for the six months ended June 30, 2013 totaled 69.1%, compared to 68.8% for the prior year period.

    Monitronics reported net income for the three months ended June 30, 2013 of $592,000 compared to a net loss of $3.8 million in the prior year period. Net income for the six months ended June 30, 2013 was $1.9 million compared to a net loss of $7.5 million in the prior year period.

    The table below summarizes subscriber data for the twelve months ended June 30, 2013:

    For the three months ended June 30, 2013, Monitronics purchased 47,733 subscriber accounts, compared to the 26,358 subscriber accounts in the three months ended June 30, 2012. During the six months ended June 30, 2013 and 2012, Monitronics purchased 76,193 and 50,532 subscriber accounts, respectively. The account purchases for the three and six months ended June 30, 2013 include bulk buy purchases of approximately 18,200 accounts.

    Monitronics’ trailing twelve month attrition for the period ended June 30, 2013 increased to 12.5% compared to 11.7% for the twelve months ended June 30, 2012.

    Security Networks Transaction

    On July 10, 2013 Monitronics signed a definitive agreement to acquire Security Networks, LLC. The transaction consideration will consist of $487.5 million of cash and 253,333 newly issued shares of Ascent Series A common stock with an agreed value of $20 million. The purchase price is subject to adjustment at closing and is based upon Security Networks delivering recurring monthly revenue (as defined in the acquisition agreement, “Acquisition RMR”) of $8.8 million. The transaction will be financed primarily with new debt at the Ascent and Monitronics levels, as well as an incremental amount of cash from Ascent's balance sheet. The transaction is expected to close in mid-August 2013, subject to customary closing conditions, including regulatory approvals.

    The cash portion of the Security Networks Purchase Price will be funded by cash on hand at Ascent Capital and new debt, which is to consist of the $103.5 million of Convertible Notes issued by Ascent Capital, the $175.0 million New Senior Notes issued by Monitronics and the expected Incremental Term Loan of $225 million to be provided under Monitronics’ Credit Facility.  The Convertible Notes offering was completed on July 17, 2013 with the notes maturing on July 15, 2020 and bearing interest at 4.00% per annum from July 17, 2013.  Interest will be payable semi-annually on January 15 and July 15 of each year. 

    The New Senior Notes offering was completed on July 17, 2013 by Monitronics Escrow Corporation (the “Escrow Issuer”), a wholly-owned subsidiary of Ascent Capital, and the proceeds from this offering have been placed in escrow.  In connection with the completion of the Security Networks Acquisition, the Escrow Issuer will be merged into Monitronics and Monitronics will assume the New Senior Notes.  The New Senior Notes will mature on April 1, 2020 and bear interest at 9.125% per annum, with interest being payable semi-annually on April 1 and October 1 of each year. 

    Monitronics expects that the Incremental Term Loan will be entered into upon the closing of the Security Networks Acquisition.  Monitronics expects that the Incremental Term Loan will mature on March 23, 2018 and will bear interest based on LIBOR plus an applicable margin to be agreed, subject to a LIBOR floor to be agreed.  In addition, Monitronics has evaluated its borrowing capacity subsequent to the Security Networks Acquisition, upon which it expects to increase the borrowing available under Monitronics’ Credit Facility revolver by an amount equal to $75 million.

    Ascent Liquidity and Capital Resources

    At June 30, 2013, on a consolidated basis, Ascent had $84.1 million of cash and cash equivalents, $2.6 million of restricted cash, and $141.4 million of marketable securities on a consolidated basis.  The Company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund potential strategic acquisitions or investment opportunities, including the Security Networks Acquisition.

    During the six months ended June 30, 2013, Monitronics used cash of $113.2 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At June 30, 2013, the existing long-term debt of Monitronics includes the principal balance of $1.1 billion under its Senior Notes, Credit Facility, and Credit Facility revolver. The Senior Notes have an outstanding principal balance of $410.0 million as of June 30, 2013 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $687.0 million as of June 30, 2013 and requires principal payments of approximately $1.7 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $33.6 million as of June 30, 2013 and becomes due on December 22, 2017.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the pending acquisition of Security Networks, the integration of acquired assets and businesses (including the consolidated performance of Monitronics after giving effect to the pending acquisition), the terms of the anticipated amendments to Monitronics’ Credit Facility (including the size of its revolver capacity), future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, Monitronics’ ability to complete the acquisition of Security Networks (including the completion of the acquisition financing), continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.



    [1] Comparisons are year-over-year unless otherwise specified.

    [2] For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net income for the three months and six ended June 30, 2013 totaled $65,000 and $2.8 million, respectively. Monitronics’ net income for the corresponding periods totaled $592,000 and $1.9 million, respectively.  

    Ascent Capital Group Announces Financial Results For The Three Months Ended March 31, 2013

    by Moni Blogger | May 09, 2013

    Englewood, CO – May 9, 2013 – Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three months ended March 31, 2013. Ascent is a holding company that owns Monitronics International, Inc. (“Monitronics”), one of the nation’s largest and fastest-growing home security alarm monitoring companies.

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 818,000 residential and commercial customers as of March 31, 2013. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow.

    Highlights1:

    • Ascent’s net revenue for the three months ended March 31, 2013 increased 22.3%, driven by increases in Monitronics’ subscriber accounts and increases in average recurring monthly revenue (RMR) per subscriber
    • Ascent’s Adjusted EBITDA2 for the three months ended March 31, 2013 increased 27.2%
    • Ascent’s balance sheet remains strong with $222.3 million of cash and marketable securities

    • Monitronics’ Adjusted EBITDA for the three months ended March 31, 2013 increased 22.9% Monitronics subscriber accounts as of March 31, 2013 increased 15.8% to 818,335 Monitronics average RMR per subscriber as of March 31, 2013 increased 5.3% to $39.74
    • Monitronics completed the repricing of its Senior Secured Credit Facility and amended its interest rate swap arrangements Monitronics expects the repricing will result in a pro forma annualized interest expense savings of approximately $8.1 million

    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “The business is off to a solid start in 2013 with Monitronics reporting strong double-digit growth in subscribers, revenue and Adjusted EBITDA in the first quarter. Monitronics also successfully completed the repricing of its Senior Secured Credit Facility which will provide significant annual cost savings as well as increased flexibility to invest in future growth.

    “At the holding company level, we remain focused on acquisitions in the alarm monitoring and related security industry and are confident we will identify and execute on new opportunities that will drive attractive returns for our shareholders.”

    Mike Haislip, President and Chief Executive Officer of Monitronics said, “We delivered another solid performance in the first quarter with 22 percent growth in revenue and 23 percent growth in Adjusted EBITDA. We also saw a 15.8% increase in total subscriber accounts. As previously predicted, attrition levels increased modestly in the quarter given the age of accounts in our portfolio and an increase in disconnects due to relocations as the housing market continues its recovery. Our predictive data indicates that we should expect an increase in attrition through the second and third quarters of 2013 before moderating in the fourth quarter. Finally, our suite of advanced services continued to be an attractive option for subscribers with 48 percent of new customers in the quarter signing up for some form of home automation or interactive services. Despite the increase in telecom and field service costs associated with these services, they continue to provide our business with strong revenue and RMR growth.”

    (1 Comparisons are year-over-year unless otherwise specified.)
    (2 For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net income for the three months ended March 31, 2013 totaled $2.8 million compared to a net loss of $5.1 million for the three months ended March 31,2012.)

    Three Months Ended March 31, 2013 Results

    Ascent Capital Group, Inc.

    For the three months ended March 31, 2013, Ascent reported net revenue of $100.2 million, an increase of 22.3% compared to $81.9 million for the three months ended March 31, 2012. This increase in net revenue is primarily attributable to increases in Monitronics’ subscriber accounts and average RMR per subscriber.

    Ascent’s total cost of services for the three months ended March 31, 2013 increased 37.5% to $15.2 million. This increase is primarily due to an increased number of accounts monitored across the cellular network and a higher number of customers receiving interactive and home automation services, which result in higher operating and service costs.

    Selling, general & administrative (“SG&A”) costs for the three months ended March 31, 2013 increased 10.8% to $19.7 million, primarily attributable to increases in Monitronics SG&A expenses. The increase in Monitronics SG&A is primarily attributable to increased payroll expenses of approximately $1.0 million. Additionally, Ascent’s consolidated stock-based compensation expense increased approximately $528,000 over the corresponding prior year period, related to restricted stock and option awards granted to certain employees. For the three months ended March 31, 2013, Ascent’s Adjusted EBITDA increased 27.2% to $71.3 million. This increase in Adjusted EBITDA is primarily due to revenue growth at Monitronics, partially offset by higher operating and service costs.

    For the three months ended March 31, 2013, Ascent recorded a one-time pre-tax gain of $3.2 million related to the divestiture of an equity investment tied to the Company’s legacy businesses. Ascent also divested $1.1 million in legacy real estate assets resulting in a one-time pre-tax gain of $141,000 during the three months ended March 31, 2013.

    Ascent reported net income from continuing operations for the three months ended March 31, 2013 of $2.3 million, compared to a net loss of $4.9 million in the three months ended March 31, 2012.

    Monitronics International

    For the three months ended March 31, 2013, Monitronics reported net revenue of $100.2 million, an increase of 22.3% compared to $81.9 million for the three months ended March 31, 2012. The increase in net revenue is attributable to a 15.8% increase in the number of subscriber accounts and a 5.3% increase in average RMR per subscriber to $39.74 as of March 31, 2013.

    Monitronics’ total cost of services for the three months ended March 31, 2013 increased 37.5% to $15.2 million. The increase for the three months ended March 31, 2013 is primarily attributable to an increased number of accounts monitored across the cellular network and an increase in interactive and home automation services, resulting in higher operating and service costs.

    Monitronics SG&A costs for the three months ended March 31, 2013 increased 10.8% to $15.9 million compared to the prior year period. The increased Monitronics SG&A costs are primarily attributable to increased payroll expenses of approximately $1.0 million.

    Monitronics’ Adjusted EBITDA for the three months ended March 31, 2013 was $69.4 million, an increase of 22.9% over the three months ended March 31, 2012. The increase in Adjusted EBITDA for the quarter is primarily due to revenue and subscriber growth. Monitronics’ Adjusted EBITDA as a percentage of revenue was 69.3% in the first quarter of 2013, compared to 69.0% for the three months ended March 31, 2012.

    Monitronics reported net income for the three months ended March 31, 2013 of $1.3 million compared to a net loss of $3.8 million in the prior year period.

    For the three months ended March 31, 2013, Monitronics purchased 28,460 subscriber accounts, compared to 24,174 subscriber accounts in the three months ended March 31, 2012. Purchases from Monitronics’ core account generation engine, or the accounts that Monitronics buys from authorized dealers on a recurring basis, remained strong this quarter, up 11.5 percent over the same quarter in 2012.

    Monitronics’ trailing twelve month attrition for the period ended March 31, 2013 increased to 12.2% from 11.3% for the twelve months ended March 31, 2012. As expected, attrition levels increased due to the age of accounts in our portfolio and an increase in disconnections due to higher household relocations.

    Credit Facility Repricing

    On March 25, 2013, Monitronics completed the repricing of its Senior Secured Credit Facility, which is comprised of a $150.0 million revolver and a Term Loan B under which $688.8 million remains outstanding. The repriced facility will now have an interest rate of LIBOR plus 3.25% with a LIBOR floor of 1.00% for the Term Loan B and an interest rate of LIBOR plus 3.75% with a LIBOR floor of 1.00% for the revolver. Concurrently, Monitronics extended the maturity of its Senior Secured Revolving Credit Facility by nine months to December 22, 2017.

    In conjunction with the repricing, Monitronics also amended its interest rate swap arrangements resulting in a new weighted average fixed interest rate of 5.0% on its Term Loan B, as compared to 6.2% formerly. Monitronics expects that the repricing will result in pro forma annualized interest expense savings of approximately $8.1 million.

    Ascent Liquidity and Capital Resources

    At March 31, 2013, on a consolidated basis, Ascent had $100.4 million of cash and cash equivalents, $2.6 million of restricted cash and $142.9 million of marketable securities. The Company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund strategic acquisitions or investment opportunities.

    During the three months ended March 31, 2013, Monitronics used cash of $46.0 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At March 31, 2013, the existing long-term debt of Monitronics includes the principal balance of $1.1 billion under its Senior Notes, Credit Facility, and Credit Revolver. The Senior Notes have an outstanding principal balance of $410.0 million as of March 31, 2013 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $688.8 million as of March 31, 2013 and requires principal payments of $1.7 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $21.5 million as of March 31, 2013 and becomes due on December 22, 2017.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the integration of acquired assets and businesses, estimated interest expense savings, future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    On March 25, 2013, Monitronics completed the repricing of its Senior Secured Credit Facility, which is comprised of a $150.0 million revolver and a Term Loan B under which $688.8 million remains outstanding. The repriced facility will now have an interest rate of LIBOR plus 3.25% with a LIBOR floor of 1.00% for the Term Loan B and an interest rate of LIBOR plus 3.75% with a LIBOR floor of 1.00% for the revolver. Concurrently, Monitronics extended the maturity of its
    Senior Secured Revolving Credit Facility by nine months to December 22, 2017.

    In conjunction with the repricing, Monitronics also amended its interest rate swap arrangements resulting in a new weighted average fixed interest rate of 5.0% on its Term Loan B, as compared to 6.2% formerly. Monitronics expects that the repricing will result in pro forma annualized interest expense savings of approximately $8.1 million.

    Ascent Liquidity and Capital Resources

    At March 31, 2013, on a consolidated basis, Ascent had $100.4 million of cash and cash equivalents, $2.6 million of restricted cash and $142.9 million of marketable securities. The Company may use a portion of these assets to decrease debt obligations, fund stock repurchases, or fund strategic acquisitions or investment opportunities.

    During the three months ended March 31, 2013, Monitronics used cash of $46.0 million to fund purchases of subscriber accounts net of holdback and guarantee obligations.

    At March 31, 2013, the existing long-term debt of Monitronics includes the principal balance of $1.1 billion under its Senior Notes, Credit Facility, and Credit Revolver. The Senior Notes have an outstanding principal balance of $410.0 million as of March 31, 2013 and mature on April 1, 2020. The Credit Facility term loan has an outstanding principal balance of $688.8 million as of March 31, 2013 and requires principal payments of $1.7 million per quarter with the remaining outstanding balance becoming due on March 23, 2018. The Credit Facility revolver has an outstanding balance of $21.5 million as of March 31, 2013 and becomes due on December 22, 2017.

    Forward Looking Statements

    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, acquisition opportunities, market potential, consumer demand for interactive and home automation services, the integration of acquired assets and businesses, estimated interest expense savings, future financial prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of our services, technological innovations in the alarm monitoring industry, competitive issues, continued access to capital on terms acceptable to Ascent, our ability to capitalize on acquisition opportunities, general market and economic conditions, and changes in law and government regulations. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 10-Q, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    Ascent Capital Group to Report First Quarter 2013 Results

    by Moni Blogger | Apr 25, 2013

    Englewood, CO – April 25, 2013 – Ascent Capital Group Inc. (“Ascent or the “Company”) (NASDAQ: ASCMA) will issue a press release to report its results for the three months ended March 31, 2013 after the market close on Thursday, May 9, 2013. The company will host a conference call that day at 5:00 p.m. ET in which management will provide an update on Ascent’s operations, including the financial performance of its wholly owned subsidiary, Monitronics International, Inc., and may discuss future opportunities.

    Participating on the call will be Ascent’s Chairman and Chief Executive Officer, Bill Fitzgerald; Senior Vice President and Chief Financial Officer, Mike Meyers; and Executive Vice President, Mike Haislip. Messrs. Haislip and Meyers are also executive officers of Monitronics.

    To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 57694409. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through May 16, 2013 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 57694409.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    About Ascent Capital Group, Inc.

    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation’s largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    Ascent Capital Group's Subsidiary, Monitronics International, Completes Repricing of Credit Facility

    by Moni Blogger | Mar 26, 2013

    Englewood, CO - March 25, 2013 - Ascent Capital Group, Inc ("Ascent" or the "Company") (Nasdaq: ASCMA) announced today that its wholly-owned subsidiary, Monitronics International, Inc. ("Monitronics"), has completed the repricing of its Senior Secured Credit Facility, which is comprised of a $150 million revolver and a Term Loan B under which $691 million remains outstanding. The repriced facility will now have a reduced interest rate of LIBOR plus 3.25% with a LIBOR floor of 1.00% for the Term Loan B and a reduced interest rate of LIBOR plus 3.75% with a LIBOR floor of 1.00% for the revolver. Concurrently, Monitronics extended the maturity of its Senior Secured Revolving Credit Facility by nine months to December 22, 2017.

    In conjunction with the repricing, Monitronics also amended its interest rate swap arrangement resulting in a new fixed interest rate of 5.0%, as compared to 6.2% on the former Term Loan B. Monitronics expects that the repricing will result in a pro forma annualized interest expense savings of approximately $8.1 million.

    Mike Haislip, President and Chief Executive Officer of Monitronics International, said, “We are pleased with the results of this transaction, which significantly reduces our cost of debt and extends the maturity of our revolver. Our business will benefit from the annual cost savings as well as the financial flexibility it affords us to invest in future growth. We appreciate the continued strong support from our debt investors and our lenders.”

    Forward Looking Statements
    This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about cost savings and market conditions and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, general market and economic conditions. These forward-looking statements speak only as of the date of this press release, and Ascent expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Ascent’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Ascent, including the most recent Form 10-K and 8-K, for additional information about Ascent and about the risks and uncertainties related to Ascent’s business which may affect the statements made in this press release.

    About Ascent Capital Group, Inc. 
    Ascent is a holding company and owns 100 percent of its operating subsidiaries, including Monitronics, one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    Ascent Capital Group Announces Financial Results for the Three and Twelve Months Ended December 31, 2012

    by Moni Blogger | Feb 26, 2013

    Englewood, CO – February 26, 2013 - Ascent Capital Group, Inc. (“Ascent” or the “Company”) (Nasdaq: ASCMA) has reported results for the three and twelve months ended December 31, 2012. Ascent is a holding company that owns 
    Monitronics International, Inc. (“Monitronics”), one of the nation’s largest and fastest-growing home security alarm monitoring companies. 

    Headquartered in Dallas, Texas, Monitronics provides security alarm monitoring services to more than 810,000 residential and commercial customers as of December 31, 2012. Monitronics’ long-term monitoring contracts provide high margin recurring revenue that results in predictable and stable cash flow. 

    Highlights:1
     
    • Ascent’s net revenue for the three and twelve months ended December 31, 2012 increased 17.5% and 10.6%, respectively, driven by increases in Monitronics’ subscriber accounts and average recurring monthly revenue  (“RMR”) per subscriber 
    • Ascent’s Adjusted EBITDA2 for the three and twelve months ended December 31, 2012 increased 41.3% and 18.3% driven by strong revenue growth at Monitronics 
    • Ascent’s balance sheet remains strong with $217.6 million of cash and marketable securities at the holding company level as of December 31, 2012 
    • Monitronics’ Adjusted EBITDA for the three and twelve months ended December 31, 2012 increased 22.7% and 10.2%, respectively, driven by growth in subscriber accounts and average RMR 
    • Monitronics subscriber accounts as of December 31, 2012 increased 16.0% to 812,539 
    • Monitronics average RMR per subscriber increased 5.4% as of December 31, 2012 to $39.50 
    Ascent Chairman and Chief Executive Officer, Bill Fitzgerald stated, “I am extremely pleased with our performance in the fourth quarter and full year. The business delivered strong growth in net revenue and Adjusted EBITDA and we successfully completed a large bulk purchase of accounts in the fourth quarter that provides us with strong incremental cash flow and positioned the business well as we moved into the new year.” 

    Monitronics Mike Haislip, President and Chief Executive Officer of Monitronics said, “2012 was a strong year for our business. Growth in both full year revenue and Adjusted EBITDA topped 10 percent and we saw a 16 percent year over year increase in total subscriber account growth driven in part by the successful purchase of 93,000 high quality subscriber accounts from Pinnacle Security. The acquired accounts feature 75 percent penetration of interactive services, which provides for a higher value customer and also drives increased RMR.” 

    Mr. Haislip continued, “As expected, attrition levels increased modestly in the quarter given the age of accounts in our portfolio and an increase in disconnects due to relocations driven by improvements in the housing market. In the near term, we expect to see modest increases in overall attrition levels as these trends continue. Our suite of advanced services also continues to be an attractive offering to consumers. Excluding accounts acquired in the Q4 bulk purchase from Pinnacle, over 37 percent of new customers in 2012 signed up for home automation or interactive services and we expect that percentage to continue to grow in 2013. While incremental telecom and field service costs associated with these services continue to place downward pressure on Adjusted EBITDA margins, the positive impact on net cash flow from these customers continues to drive strong revenues and RMR across the entire business.”

    1 Comparisons are year-over-year unless otherwise specified. 
    2 For a definition of Adjusted EBITDA and applicable reconciliations, see the Appendix to this release. Ascent’s net income (loss) from continuing 
    operations for the three and twelve months ended December 31, 2012 totaled $0.1 million and $(24.3) million, respectively. Monitronics’ net loss 
    for the corresponding periods totaled $3.4 million and $16.0 million, respectively.

    Ascent To Report Fourth Quarter and Full 2012 Results February 26, 2013

    by Moni Blogger | Feb 19, 2013

    Englewood, CO – February 19, 2013 – Ascent Capital Group Inc. (“Ascent or the “Company”) (NASDAQ: ASCMA) will issue a press release to report its results for the three and twelve months ended December 31, 2012 after the market close on Tuesday, February 26, 2013. The company will host a conference call that day at 5:00 p.m. ET in which management will provide an update on Ascent’s operations, including the financial performance of its wholly owned subsidiary, Monitronics International, Inc., and may discuss future opportunities.

    Participating on the call will be Ascent’s Chairman and Chief Executive Officer, Bill Fitzgerald; Senior Vice President and Chief Financial Officer, Mike Meyers; and Executive Vice President, Mike Haislip. Messrs. Haislip and Meyers are also executive officers of Monitronics.

    To access the call please dial (888) 462-5915 from the United States, or (760) 666-3831 from outside the U.S. The conference call I.D. number is 12497704. Participants should dial in 5 to 10 minutes before the scheduled time and must be on a touch-tone telephone to ask questions.

    A replay of the call can be accessed through March 5, 2013 by dialing (800) 585-8367 from the U.S., or (404) 537-3406 from outside the U.S. The conference call I.D. number is 12497704.

    This call will also be available as a live webcast which can be accessed at Ascent’s Investor Relations Website at http://www.ascentcapitalgroupinc.com/Investor-Relations.aspx.

    About Ascent Capital Group, Inc.
    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics, one of the nation’s largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    Ascent To Present At 2013 Citi Global Internet, Media & Telecom Conference

    by Moni Blogger | Jan 04, 2013

    ENGLEWOOD, Colo. – January 4, 2013 – Ascent Capital Group, Inc. (Nasdaq: ASCMA) announced today that it will present to the attendees of the 2013 Citi Global Internet, Media & Telecommunications Conference, being held on January 9, 2013 at the Bellagio Hotel in Las Vegas, Nevada at 10:30 am PST. Bill Fitzgerald, Chairman and Chief Executive Officer of Ascent Capital Group, and Michael Meyers, Chief Financial Officer of Ascent Capital Group and its subsidiary Monitronics International, Inc., will speak at the conference. During their presentations, Messrs. Fitzgerald and Meyers may make observations regarding the financial performance and outlook of both Ascent and Monitronics.

    During the event, a webcast and copy of management’s presentation will be made available on the Ascent investor relations website at http://ascentcapitalgroupinc.com/Investor-Relations.aspx.

    About Ascent Capital Group, Inc.
    Ascent is a holding company and owns 100 percent of its operating subsidiary, Monitronics International Inc., one of the nation's largest, fastest-growing home security alarm monitoring companies, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.

    Ascent Announces Financial Results for 3 and 9 Months Ended Sept. 30, 2012

    by Moni Blogger | Nov 14, 2012

    Nov. 14, 2012 (DALLAS)—Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) has reported results for the three and nine months ended Sept. 30, 2012. Ascent is a holding company that owns Monitronics International, Inc. ("Monitronics"), one of the nation's largest and fastest-growing home security alarm monitoring companies.

    For the three and nine months ended Sept. 30, 2012, Monitronics reported net revenue of $84.7 million and $249.9 million – increases of 6.5 percent and 8.2 percent, respectively. The increase in net revenue for the three and nine months ended Sept. 30, 2012 is primarily attributable to a 2.9-percent increase in Monitronics' subscriber accounts and a 2.8-percent increase in average RMR per subscriber to $38.28 as compared to Sept. 30, 2011. Monitronics' Adjusted EBITDA2 for the three and nine months ended Sept. 30, 2012 increased 3.1 percent and 6.1 percent, respectively, driven by growth in subscriber accounts and average RMR.

    Monitronics’ subscriber accounts as of Sept. 30, 2012 increased 2.9 percent to 717,488. It acquired 93,000 subscriber accounts on Oct. 30, 2012 for approximately $131 million (after giving effect to certain purchase price adjustments), which increased its total subscriber base 13 percent to 810,000 accounts as of Sept. 30, 2012 on a Pro Forma basis.

    "We are pleased to deliver another strong performance this quarter,” said Mike Haislip, President and Chief Executive Officer of Monitronics. “We posted solid growth in revenue and Adjusted EBITDA and purchased over 31,000 high quality accounts in the third quarter. Our interactive and home automation services continue to gain ground amongst our subscribers with over 40 percent of new customers signing on for advanced services during the quarter.

    “While there are incremental telecom and field service costs associated with advanced services, these accounts provide for a higher value customer and drive increased levels of RMR. As expected, attrition levels increased modestly given the age of accounts in our portfolio and the increase in disconnects due to relocations which we believe are driven by improvements in the housing market."

    Ascent Chairman and Chief Executive Officer Bill Fitzgerald stated, "Our results for the third quarter once again illustrate the strength of the Monitronics business model. We are also pleased to have recently completed a significant bulk purchase of accounts, which will provide strong incremental cash flow for the business.

    "At the holding company level, we continue to actively explore additional accretive acquisition opportunities within the alarm monitoring and related security industry."

    Ascent Media Corporation Acquires Monitronics

    by Moni Blogger | Dec 17, 2010

    Englewood, CO – December 17, 2010 - Ascent Media Corporation (“Ascent” or the “Company”) (Nasdaq: ASCMA) today announced it has acquired Monitronics International, Inc. (“Monitronics”), one of the nation’s largest and fastest-growing security monitoring companies. The transaction was valued at approximately $1.2 billion, exclusive of certain hedge related and other liabilities but including the assumption of Monitronics’ existing structured financing. The 
    cash portion of the merger consideration comprised an aggregate of $413 million and was funded by Ascent from cash on hand and $105 million in borrowings under a new $175 million credit facility. 

    Headquartered in Dallas, Texas, Monitronics provides monitored business and home security system services to more than 665,000 residential and commercial customers. Monitronics’ longterm monitoring contracts provide high margin, monthly recurring revenues that result in predictable and stable cash flow. Monitronics delivered revenue of $272 million and EBITDA of $187 million in its fiscal year ended June 30, 2010, increases of 16% and 22% respectively over 2009. In the 12 years from fiscal year ended June 30, 1998 to fiscal year ended June 30, 2010, Monitronics generated 22% compounded annual growth of revenue, making it one of the fastest growing companies in the industry. 

    Ascent’s Chief Executive Officer, William Fitzgerald commented, “We are pleased to announce this transaction which addresses AMC’s stated objective of acquiring an operating company with proven management that exhibits an impressive track record of success; a subscription-based business that delivers solid, predictable revenue and cash flow; and a business capable of 
    sustaining growth in varying economic conditions. Monitronics, with its 16 consecutive years of revenue and EBITDA growth, meets all of these criteria. We look forward to the ongoing success of Monitronics under the continued stewardship of Mike Haislip, Mike Meyers and the entire Monitronics team and are confident that this transaction will provide attractive returns.”

    Unlike traditional security monitoring business models, Monitronics utilizes an exclusive nationwide dealer network to sell, install and service the security systems it monitors. Monitronics purchases monitoring contracts from dealers and provides subscribers with a full spectrum of security alarm services including monitoring, customer service and technical support. The dealer-based business model allows Monitronics to grow its subscriber base without employing a national sales and installation force. Additionally, Monitronics outsources 
    on-site technical support to its dealer network, further reducing expenses and driving recurring high margin revenue. The net result has been strong operating cash flow and the generation of high EBITDA margins which reached 68.6% in the fiscal year ended June 30, 2010. 

    Monitronics recently was the recipient of the 2010 Frost & Sullivan Company of the Year award in the North American alarm monitoring residential security market, a reflection of the Company’s great growth strategy and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. 

    Mike Haislip, President and CEO of Monitronics stated, “This is an opportunistic time to participate in the security monitoring industry and the transaction with Ascent provides Monitronics with a fantastic platform to further strengthen our leadership position in the $29 billion security market. Our unique business model that starts with our dealer network, allows us to build our subscriber base and scale the business, generating margins that can’t easily be matched by others in the industry. We look forward to working with Ascent on our growth plans and believe it will result in strong value creation for customers, shareholders and other stakeholders.” 

    Haislip added, “We would also like to thank ABRY for their ownership and support over the years. It was with their exceptional operational expertise and smart financial backing that we were able to build Monitronics into the company that it is today.”