ADT(ADT) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $1.26 billion, an 8% increase year-over-year, while full-year revenue reached$ 4.898 billion, up 5%[6]. - GAAP income from continuing operations for Q4 was $197 million, or$ 0.21 per diluted share, up 84% from the previous year, while full-year GAAP income was $619 million, or$ 0.66 per diluted share, up 38%[6][7]. - Net income for Q4 2024 was $190 million, a decrease of 67% compared to$ 576 million in Q4 2023[28]. - Adjusted income from continuing operations for the full year 2024 was $685 million, compared to$ 549 million in 2023, an increase of 25%[59]. - Adjusted diluted income per share for the full year 2024 was $0.75, up from$ 0.60 in 2023, marking a 25% increase[59]. - Operating income for Q4 2024 was $305 million, a slight decrease of 1% from$ 307 million in Q4 2023[28]. - Adjusted EBITDA from continuing operations for Q4 2024 was $653 million, compared to$ 627 million in Q4 2023, reflecting a growth of 4%[51]. - The adjusted EBITDA margin for Q4 2024 was 52%, slightly down from 53% in Q4 2023[51]. - Interest expense for Q4 2024 was $82 million, down from$ 169 million in Q4 2023, indicating a reduction of 51%[51]. - The company reported a debt to income from continuing operations ratio of 12.4x for 2024, improved from 17.4x in 2023[66]. Cash Flow and Investments - Adjusted Free Cash Flow, including interest rate swaps, rose by 42% to $744 million for the full year[3][10]. - Net cash provided by operating activities for the twelve months ended December 31, 2024, was$ 1,885 million, an increase of 14% from $1,658 million in 2023[44]. - Free Cash Flow for the three months ended December 31, 2024, was$ 197 million, significantly up from $13 million in the same period of 2023[44]. - Adjusted Free Cash Flow for the twelve months ended December 31, 2024, was$ 659 million, compared to $442 million in 2023, reflecting a 49% increase[44]. - The company reported a net cash used in investing activities of$ (1,295) million for the twelve months ended December 31, 2024, compared to a net cash provided of $242 million in 2023[44]. - The company reported a net cash used in financing activities of$ (515) million for the twelve months ended December 31, 2024, down from $(2,144) million in 2023[44]. - The ending cash balance as of December 31, 2024, was$ 204 million, compared to $130 million at the end of 2023[44]. Shareholder Returns - The company returned$ 423 million to shareholders in 2024, including $182 million in dividends, which was over a 40% increase from the prior year[12]. - The Company announced a share repurchase plan allowing for the repurchase of up to$ 500 million of Common Stock through April 30, 2026[19]. - The company plans to maintain momentum into 2025 with a new $500 million share repurchase plan[1]. - The Board of Directors will periodically review the outstanding amount authorized under the Share Repurchase Plan as part of its capital allocation strategy[20]. Customer Metrics and Product Development - End-of-period recurring monthly revenue (RMR) increased by 2% to$ 359 million, equating to an annualized RMR of $4.3 billion[3]. - ADT achieved a record customer retention rate with a gross revenue attrition of 12.7%[3]. - The ADT+ app received an average rating of 4.8 stars across thousands of reviews, highlighting its strong customer satisfaction[5]. - The ADT+ platform was launched, integrating professional monitoring with Google Nest devices, enhancing customer offerings[5]. Strategic Initiatives - The Company is working on strategic partnerships with State Farm and Google to enhance product commercialization[26]. - The Company is implementing a new enterprise resource planning (ERP) system, with expected costs and benefits yet to be detailed[26]. - The Company plans to partially redeem$ 500 million of its First Lien Notes due 2026[26]. - The Company has made forward-looking statements regarding its share repurchase plan, expected future financial results, and integration of strategic bulk purchases of customer accounts[26]. - Management will host a conference call to discuss the Company's fourth quarter and full year 2024 results[22]. - A slide presentation highlighting the Company's results will be available on the Investor Relations section of the Company's website[24]. - The Company will provide updates on its financial condition and results of operations in its upcoming filings with the SEC[26]. Balance Sheet Highlights - Total assets as of December 31, 2024, were $16,051 million, a slight increase from$ 15,964 million as of December 31, 2023[30]. - Current liabilities decreased to $1,264 million in Q4 2024 from$ 1,480 million in Q4 2023[30]. - Long-term debt remained stable at $7,511 million as of December 31, 2024, compared to$ 7,513 million in the previous year[30]. - Total stockholders' equity increased to $3,801 million as of December 31, 2024, from$ 3,789 million in 2023[30]. - Total debt as of December 31, 2024, was $7,707 million, a decrease from$ 7,826 million in 2023[66]. - The net leverage ratio improved to 2.9x as of December 31, 2024, down from 3.1x in 2023[66].