ADT Inc (NYSE: ADT) stock lost over 12.3% on 12th March, 2019 (As of 11:42 am GMT-4; Source: Google finance) as the company in the fourth quarter of FY 18 has reported the net loss of $149 million, compared to net income of $638 million.
Adjusted Net Income rose 33% to $101 million during the quarter. The company grew total revenue 7%, driven by strong installation revenues that were up more than 50%, along with continued penetration with ADT Pulse, further improvement in customer retention and the December acquisition of Red Hawk. The company grew adjusted EBITDA 3% to $614 million. The free cash flow before special items increased to $59 million during the fourth quarter versus $22 million in the year-earlier period. During the fourth quarter, on a trailing 12-month basis, the payback was 2.4 years, consistent with the third quarter of 2018, and an improvement over the 2.5 years in the prior year period.
ADT for the fourth quarter of FY 18 has reported the adjusted loss per share of 4 cents, missing the analysts’ estimates for the adjusted earnings per share of 11 cents, as per Zacks Investment Research.
Moreover, ADT posted 3% growth in monitoring and services revenue, driven by higher monthly recurring revenue, or RMR, which benefited from higher average prices and better gross customer revenue attrition. The installation and other revenue was up 56% during the fourth quarter, driven by the expansion of our commercial business, both organically and through recent acquisitions.
Fee capital structure activities during the fourth quarter included the issuance of $425 million of first-lien bank debt and the acquisition of Red Hawk for approximately $318 million. Subsequent to the quarter ending, ADT gave notice early in January of the intent to redeem $300 million of second-lien notes, which the company executed on February the 1.
ADT has declared a cash dividend of $0.035 per share to common stockholders of record as of April 2, 2019.
ADT expects full-year 2019 revenues to be in a range of $4.9 billion to $5.1 billion, which implies the growth rate of 7% to 11%, inclusive of the full-year benefit of Red Hawk. The company expects the 2019 EBITDA to be in a range of $2.46 billion to $2.5 billion, and the company expects free cash flow before special items to be in a range of $570 million to $610 million. Gross Customer Revenue Attrition is expected to be in the range of 13.2% – 12.8%.