BOCA RATON, Fla. — ADT (NYSE: ADT) on Wednesday reported a loss of $157 million in its first quarter, although adjusted earnings beat expectations.
On a per-share basis, the nation’s largest home security and alarm monitoring company said it had a loss of 22 cents per share. Losses, adjusted for non-recurring costs and stock option expense, amounted to 34 cents per share. That compares to a $141 million loss, or 22 cents a share, for the same period last year.
ADT reported a 26% increase in adjusted profit to $249 million. Adjusted earnings per share rose 10% to 34 cents, ADT reported. Analysts forecast adjusted earnings of 24 cents a share, according to FactSet.
The company posted a 5% increase in revenue to $1.12 billion in the period. That compares with analysts’ forecasts of $1.11 billion, according to FactSet. Monitoring and related services revenue rose 2% to $1.02 billion.
ADT reported a trailing 12-month gross customer revenue attrition of 13.6%, an improvement of 90 basis points year-over-year, marking a new all-time low. The improvement was attributed to more efficient sales and marketing expenditures as the company identified opportunities to lower the cost per sale combined with reductions in net installation cost, largely driven by variance performance management throughout its field offices.
“We continue to build momentum and are off to a strong start in our first quarter operating as a public company,” ADT CEO Tim Whall states in an announcement. “This quarter we continued to deliver strong year-over-year growth in revenue, EBITDA, and cash flow. Operationally, we continued to execute on our commitment to enhance our customer service capabilities and implement operational improvements.”
ADT declared a cash dividend of 3.5 cents a share.
