Company name:

ADT Inc

  • IPO SHARE PRICE:
    $14.00
  • IPO DATE:
    January 19, 2018
  • TICKER:
    ADT
  • MAIN STOCK EXCHANGE:
    NYSE
  • CURRENT HQ LOCATION:
    1501 Yamato Road Boca Raton Florida 33431
  • FISCAL YEAR END:
    December 31
  • INCORPORATION JURISDICTION:
    DE
  • ORGANIZED AS THE FOLLOWING LEGAL TYPE:
    Corporation
  • Investor Relations Webpage:
    https://investor.adt.com
  • TAX RATE:
    USA federal corporate nominal income tax rate is 21%

Short Description

ADT Inc

Largest US security alarm provider against burglar intrusions into private homes and business premises. In addition, ADT helps detect other adverse events on the customer premises: floods, fires, smoke, carbon monoxide, emergency medical assistance. Company utilizes sensors to detect intrusion into property and adverse events.

Upon detection of intrusion, ADT system sounds alarm in the building and company call center (called monitoring centers) attempts to verify validity of the event. If validity is confirmed , ADT calls police, fire fighters or emergency medical help.

Business model: typically, 3-year subscription contract, 2-year contract in California. ADT installs equipment for a fee and controls service via its call centers as opposed to DIY and self-monitoring approach by some of its competitors. Although, ADT has DYI offering called Blue by ADT.

Competitors: Vivint, Guardian, Comcast, Brinks Home Security (Moni), at&t, Stanley Security, Johnson Controls, Convergint Technologies, Securitas Electronic Security, Frontpoint Secuirty (DIY), SimpliSafe, Apple HomeKit, Amazon Ring, Google Nest.

Income Statement

Quarterly Annual
(USD in thousand)
Selected Year:
31-Dec
2020
Revenue
Gross receipts from all its customers; some of the receipts in the form of cash (great!) while some are customers I owe you (A/Rs - not so good but reality of business!)
100%
78.8% —

Monitoring and related services

21.2% —

Installation and other revenue
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
Monitoring and related services
45,679
 4,029,279 4,109,939 4,307,582 4,186,987 4,186,987 4,215,896
Growth, yoy in %
45.0%
46.6%
2.0%
4.8%
-2.8%
-2.8%
0.7%
Share as % of Total Revenue
45.0%
93.4%
89.7%
84.0%
78.8%
78.8%
80.2%
Installation and other revenue
$45,679
 286,223 471,734 818,075 1,127,800 1,127,800 1,043,000
Growth, yoy in %
45.0%
42.0%
64.8%
73.4%
37.9%
37.9%
-7.5%
Share as % of Total Revenue
45.0%
6.6%
10.3%
16.0%
21.2%
21.2%
19.8%
Total Revenue
$45,679
 $4,315,502 $4,581,673 $5,125,657 $5,314,787 $5,314,787 $5,258,896
Growth, yoy in %
45.0%
46.3%
6.2%
11.9%
3.7%
3.7%
-1.1%
Selected Year:
31-Dec
2020
Operating expenses
Cost (labor, materials, depreciation, overhead, etc) for delivering service or manufacturing a product that business sells
99.2%
36.0% —

Depreciation and amortization

32.4% —

Selling general and administrative

28.5% —

Cost of revenue excluding depreciation and amortization

2.3% —

Merger restructuring integration and other

0.0% —

Gain or loss on sale of business

0.0% —

Goodwill impairment
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
Cost of revenue excluding depreciation and amortization Cost of revenue excluding depreciation and amortization
45,679
 895,736 1,041,336 1,390,284 1,516,528 1,516,528 1,497,200
Growth, yoy in %
-
29.2%
16.3%
33.5%
9.1%
9.1%
-1.3%
Margin as % of Total Revenue
45.0%
20.8%
22.7%
27.1%
28.5%
28.5%
28.5%
Selling general and administrative
45,679
 1,209,200 1,246,950 1,406,532 1,722,906 1,722,906 1,778,860
Growth, yoy in %
-
40.8%
3.1%
12.8%
22.5%
22.5%
3.2%
Margin as % of Total Revenue
45.0%
28.0%
27.2%
27.4%
32.4%
32.4%
33.8%
Merger restructuring integration and other
45,679
 64,828 (3,344) 35,882 120,208 120,208 21,972
Growth, yoy in %
-
-83.5%
-105.2%
1,173.0%
235.0%
235.0%
-81.7%
Margin as % of Total Revenue
45.0%
1.5%
-0.1%
0.7%
2.3%
2.3%
0.4%
Depreciation and amortization
45,679
 1,863,299 1,930,929 1,989,082 1,913,767 1,913,767 1,894,112
Growth, yoy in %
-
51.1%
3.6%
3.0%
-3.8%
-3.8%
-1.0%
Margin as % of Total Revenue
45.0%
43.2%
42.1%
38.8%
36.0%
36.0%
36.0%
Gain or loss on sale of business
-
 - - 61,951 738 738 -
Growth, yoy in %
-
-
-
-
-98.8%
-98.8%
-
Margin as % of Total Revenue
-
-
-
1.2%
0.0%
0.0%
-
Goodwill impairment
45,679
 - 87,962 45,482 - - -
Growth, yoy in %
-
-
-
-48.3%
-
-
-
Margin as % of Total Revenue
45.0%
-
1.9%
0.9%
-
-
-
Total operating expenses
45,679
 4,033,063 4,303,833 4,929,213 5,274,147 5,274,147 5,192,144
Growth, yoy in %
-
26.9%
6.7%
14.5%
7.0%
7.0%
-1.6%
Margin as % of Total Revenue
45.0%
93.5%
93.9%
96.2%
99.2%
99.2%
98.7%
Selected Year:
31-Dec
2020
Operating Income
Income after excluding Operating Expenses from Total Revenue
0.8%
0.8% —

Operating Income

Key metric that shows earnings potential of the company's business model
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
Operating income
$45,679
 $282,439 $277,840 $196,444 $40,640 $40,640 $66,752
Growth, yoy in %
45.0%
223.2%
-1.6%
-29.3%
-79.3%
-79.3%
64.3%
Margin as % of Total Revenue
45.0%
6.5%
6.1%
3.8%
0.8%
0.8%
1.3%
Selected Year:
31-Dec
2020
Non-operating expenses
Cost usually unrelated to delivering service or manufacturing a product that business sells
2.1%
0.2% —

Other income

2.3% —

Loss on early repayment of debt
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
Other expense or income
45,679
 - - - - - -
Other income
-
 33,047 27,582 5,012 8,293 8,293 6,884
Loss on early repayment of debt
45,679
 (4,331) (274,836) (104,075) (119,663) (119,663) (19,616)
Total non-operating income (expense)
45,679
 28,716 (247,254) (99,063) (111,370) (111,370) (12,732)
Growth, yoy in %
45.0%
155.3%
-961.0%
-59.9%
12.4%
12.4%
-88.6%
Margin as % of Total Revenue
45.0%
0.7%
-5.4%
-1.9%
-2.1%
-2.1%
-0.2%
Selected Year:
31-Dec
2020
Earnings before Interest and Taxes (EBIT)
Income after excluding Operating and Non-operating Expenses from Total Revenue
1.3%
1.3% —

EBIT

Another income metric but unlike Operating Income it is closer to the ultimate income metric - Net Income by removing expenses that are not related to earning Revenue as they are supposed to be accidental and transitory
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
EBIT
$45,679
 $311,155 $30,586 $97,381 ($70,730) ($70,730) $54,020
Growth, yoy in %
45.0%
210.6%
-90.2%
218.4%
-172.6%
-172.6%
176.4%
Margin as % of Total Revenue
45.0%
7.2%
0.7%
1.9%
-1.3%
-1.3%
1.0%
Selected Year:
31-Dec
2020
Interest Expense and Income, Taxes
Expenses driven mostly by company management's choices, nature of business (capital intensive vs not) about financing (debt vs equity) and legal structure
2.8%
2.8% —

Income tax expense or benefit
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
Interest expense and/or income
45,679
 - - - - - -
Growth, yoy in %
45.0%
-
-
-
-
-
-
Margin as % of Total Revenue
45.0%
-
-
-
-
-
-
Interest expense
-
 (732,841) (663,204) (619,573) (708,189) (708,189) (555,192)
Growth, yoy in %
-
-
-9.5%
-6.6%
14.3%
14.3%
-21.6%
Margin as % of Total Revenue
-
-
-
-
-
-13.3%
-10.6%
Income before income taxes
45,679
 (421,686) (632,618) (522,192) (778,919) (778,919) (501,172)
Growth, yoy in %
45.0%
-47.5%
50.0%
-17.5%
49.2%
49.2%
-35.7%
Margin as % of Total Revenue
45.0%
-9.8%
-13.8%
-10.2%
-14.7%
-14.7%
-9.5%
Income tax expense or benefit
45,679
 (764,313) (23,463) (98,042) (146,726) (146,726) (52,928)
Selected Year:
31-Dec
2020
Net income (loss)
Ultimate measure of Income - Net result after excluding all expenses from Total Revenue
11.9%
11.9% —

Net income (loss)

It is a residue that is left from Total Revenue after paying all kind of expenses and belongs to all equity holders in the company. Some of these shareholders such Non-controlling interest or Preferred equity gets their share before Common shareholders
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
Net income (loss)
$45,679
 $342,627 ($609,155) ($424,150) ($632,193) ($632,193) ($448,244)
Growth, yoy in %
45.0%
163.9%
-277.8%
-30.4%
49.0%
49.0%
-29.1%
Margin as % of Total Revenue
45.0%
7.9%
-13.3%
-8.3%
-11.9%
-11.9%
-8.5%

Basic Shares Outstanding
Basic shares outstanding as of certain dates reported by Company on its annual and quarterly filings, these numbers are NOT used calculation of basic EPS. They help to see share issuance by company in perspective
Last Twelve Months LTM
Last Quarter Annualized LQA
Class B
-
 - - - 54,744,525 54,744,525 54,744,525
Growth, yoy in %
-
-
-
-
-
-
-
Common
-
 749,131,653 756,606,375 759,878,819 762,035,537 762,035,537 762,035,537
Growth, yoy in %
-
-
-
0.43%
0.28%
0.28%
0.28%
Selected Year:
31-Dec
2020
EPS
Net Income / Shares Outstanding = EPS before dilution or Basic EPS; Net Income/ ( Shares Outstanding + potentially available shares from conversion of various option instruments)
Selected Year:
Last Twelve Months LTM
Last Quarter Annualized LQA
Net Income per basic share
$45.00
 $0.53 ($0.81) ($0.57) ($0.82) ($0.82) ($0.56)
Growth, yoy in %
45.0%
163.1%
-252.8%
-29.6%
43.9%
43.9%
-31.7%
Net Income per diluted share
$45.00
 $0.53 ($0.81) ($0.57) ($0.82) ($0.82) ($0.56)
Growth, yoy in %
45.0%
163.1%
-252.8%
-29.6%
43.9%
43.9%
-31.7%
Net Income per diluted share - Class B
-
 - - - ($0.74) ($0.74) ($1.20)
Growth, yoy in %
-
-
-
-
-
-
62.2%
Net Income per basic share - Class B
-
 - - - ($0.72) ($0.72) ($2.48)
Growth, yoy in %
-
-
-
-
-
-
244.4%