ADT(US:ADT)2024-08-01 10:58Financial Performance - Total revenue for Q2 2024 increased by 3% to $1.205 billion, with end-of-period recurring monthly revenue (RMR) rising 2% to $355 million[2] - GAAP income from continuing operations was $126 million, or $0.13 per diluted share, down 30% year-over-year[10] - Adjusted EBITDA from continuing operations was $629 million, a decrease of 2% compared to the previous year[9] - Net cash provided by operating activities increased by 14% to $563 million, while adjusted free cash flow rose by $30 million[12] - The company affirmed its 2024 financial guidance, projecting total revenue between $4.8 billion and $5.0 billion[16] - Total revenue for Q2 2024 was $1,205 million, a 3% increase from $1,168 million in Q2 2023[27] - Monitoring and related services revenue reached $1,068 million, up 2% year-over-year, while security installation and other services generated $136 million, a 12% increase[27] - Operating income for Q2 2024 was $284 million, down 14% from $332 million in Q2 2023[27] - Net income for Q2 2024 was $92 million, unchanged from the same period last year[27] - The company reported an Adjusted EBITDA of $576 million for the first half of 2024, compared to $565 million in the first half of 2023, representing a 2% increase[27] - Interest expense increased by 31% to $110 million in Q2 2024, compared to $83 million in Q2 2023[27] - The company’s diluted earnings per share for Q2 2024 was $0.13, down from $0.19 in Q2 2023[27] - Free Cash Flow for the six months ended June 30, 2024, was $231 million, up from $165 million in the same period of 2023, representing an increase of approximately 40%[41] - Adjusted Free Cash Flow for the six months ended June 30, 2024, was $229 million, compared to $201 million in the same period of 2023, indicating a growth of approximately 13.9%[41] Operational Developments - ADT+ platform rollout continued, enhancing customer experience with next-generation hardware and technology[4] - The new Trusted Neighbor offering, in partnership with Google and Yale, is expected to launch for select customers in Q3 2024[4] - ADT's Alarm Scoring program was rolled out nationwide, improving first responder response accuracy[5] - The company completed the divestiture of its commercial business in October 2023, which is expected to impact future operations[24] - ADT plans to exit the residential solar business, with anticipated costs and benefits still under evaluation[24] Shareholder Returns and Awards - The company returned $50 million to shareholders in dividends during the quarter[12] - ADT won the Monitoring Center of the Year award, recognizing its exceptional customer service in the alarm industry[5] Asset and Liability Management - Total current assets increased to $986 million as of June 30, 2024, compared to $1,005 million on December 31, 2023, reflecting a decrease of approximately 1.9%[30] - Total liabilities stood at $12,178 million as of June 30, 2024, slightly up from $12,175 million at the end of 2023[30] - Cash and cash equivalents increased to $149 million as of June 30, 2024, from $130 million at the beginning of the period, marking a net increase of $19 million[34] - Long-term debt remained stable at $7,532 million as of June 30, 2024, compared to $7,513 million at the end of 2023[30] - The company reported a decrease in current liabilities to $1,315 million as of June 30, 2024, down from $1,480 million at the end of 2023, a reduction of approximately 11.2%[30] - Deferred subscriber acquisition revenue increased to $2,035 million as of June 30, 2024, compared to $1,915 million at the end of 2023, reflecting a growth of approximately 6.3%[30] - The company plans to exclude cash flows related to the solar business from future financial measures as the business is now substantially wound down[38] Expense Management - Selling, general, and administrative expenses rose to $388 million, reflecting a 22% increase compared to $319 million in the same quarter last year[27] - Share-based compensation expense increased significantly to $21 million in Q2 2024 from $8 million in Q2 2023[47] - Amortization of deferred subscriber acquisition costs rose to $55 million in Q2 2024 from $46 million in Q2 2023, an increase of 19.6%[44] Income Metrics - Income from continuing operations for Q2 2024 was $126 million, down from $180 million in Q2 2023, representing a decrease of 30%[44] - Adjusted Income from continuing operations for Q2 2024 was $156 million, compared to $153 million in Q2 2023, showing a slight increase of 2%[47] - Adjusted EBITDA margin as a percentage of total revenue decreased to 52% in Q2 2024 from 55% in Q2 2023[44] - The income (loss) from continuing operations to total revenue ratio decreased to 10% in Q2 2024 from 15% in Q2 2023[44] - The company reported unrealized gains/losses related to interest rate swaps of $8 million in Q2 2024, compared to a loss of $55 million in Q2 2023[47]