Ascent Capital Group Reports Q1 Loss of $27.8M
Monitronics reported a quarterly net loss $31.8 million, compared to a net loss of $26.2 million in the three months ended March 31, 2018.
Ascent Capital Group is the holding company that owns Monitronics Int’l, doing business as Brinks Home Security. Monitronics provides security alarm monitoring services to approximately 900,000 residential and commercial customers as of March 31.
The company posted revenue of $129.6 million in the period, a decrease of 3.1%. The first-quarter reduction in revenue was attributed to a lower average number of subscribers during the period. The decrease was partially offset by a 1.2% increase in average recurring monthly revenue (RMR) per subscriber, to $45.28, due to price increases enacted during the past year.
In addition, a $1.7 million decrease in revenue in the first quarter, compared to a $325,000 increase in revenue in the same period the year prior, related to changes in ASC Topic 606 contract assets.
Monitronics reported a net loss for the three months ended March 31 of $31.8 million, compared to a net loss of $26.2 million in same period the prior year. The increase in Monitronics’ net loss is primarily due to $5.2 million in refinancing expenses.
During the three months ended March 31, Monitronics acquired 20,003 subscriber accounts, compared to 21,547 subscriber accounts in the three months ended March 31, 2018.
Unit attrition increased from 16% for the twelve months ended March 31, 2018, to 17.5% in the first quarter of this year. The RMR attrition rate for the twelve months ended March 31 and March 31, 2018, was 17% and 13.9%, respectively.
The company attributed the increase in unit and RMR attrition to fewer customers under contract or in the dealer guarantee period for the twelve months ended March 31, 2019, as compared to the prior period. Another factor was increased non-pay attrition as well as impact from competition from new market entrants.
The increase in the RMR attrition rate for the twelve months ended March 31, 2019, was also impacted by a less aggressive price increase strategy in first quarter of 2019.
In the final minutes of trading on Tuesday, the company’s shares hit 60 cents. A year ago, they were trading at $2.49.
In a press release, the company said it would not host an earnings call or webcast due to its previously disclosed decision to consider strategic alternatives with respect to Monitronics.
“Ascent has not set a definitive timetable for completing the review, and there can be no assurance that the process will result in a transaction or a restructuring of Monitronics. Ascent does not intend to disclose developments or provide updates on the progress or status of this process or discuss its results of operations with investors unless and until further disclosure is appropriate or required,” the company stated.
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