ADT Reports Fourth Quarter and Full Year 2024 Results
ADT reported strong financial results for Q4 and full year 2024, with significant improvements in earnings and cash flow. The company achieved record recurring monthly revenue of $359 million and customer retention with 12.7% gross revenue attrition.
Key financial highlights include:
- Q4 total revenue increased 8% to $1.3 billion
- Full-year GAAP income from continuing operations rose to $619 million ($0.66 per share), up 40%
- Operating cash flows improved 14% to $1.9 billion
- Returned $423 million to shareholders through dividends and share repurchases
The company announced a new $500 million share repurchase plan through April 2026 and continues its quarterly dividend of $0.055 per share. ADT's business highlights include the successful rollout of its proprietary ADT+ platform, launch of Trusted Neighbor service, and implementation of ADT Remote Assistance program, which handled over 50% of service requests virtually in Q4 2024.
ADT ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024, con miglioramenti significativi negli utili e nel flusso di cassa. L'azienda ha raggiunto un fatturato mensile ricorrente record di 359 milioni di dollari e una retention dei clienti con una perdita di fatturato lordo del 12,7%.
I principali punti salienti finanziari includono:
- Il fatturato totale del Q4 è aumentato dell'8% a 1,3 miliardi di dollari
- Il reddito GAAP per l'intero anno dalle operazioni continuative è salito a 619 milioni di dollari (0,66 dollari per azione), in aumento del 40%
- I flussi di cassa operativi sono migliorati del 14% a 1,9 miliardi di dollari
- Restituiti 423 milioni di dollari agli azionisti tramite dividendi e riacquisti di azioni
L'azienda ha annunciato un nuovo piano di riacquisto di azioni da 500 milioni di dollari fino ad aprile 2026 e continua il suo dividendo trimestrale di 0,055 dollari per azione. I punti salienti dell'attività di ADT includono il lancio di successo della sua piattaforma proprietaria ADT+, il lancio del servizio Trusted Neighbor e l'implementazione del programma di Assistenza Remota ADT, che ha gestito oltre il 50% delle richieste di servizio in modo virtuale nel quarto trimestre del 2024.
ADT reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024, con mejoras significativas en ganancias y flujo de caja. La compañía logró un ingreso mensual recurrente récord de 359 millones de dólares y una retención de clientes con una pérdida de ingresos brutos del 12.7%.
Los principales aspectos financieros incluyen:
- Los ingresos totales del Q4 aumentaron un 8% a 1.3 mil millones de dólares
- Los ingresos GAAP del año completo de operaciones continuas aumentaron a 619 millones de dólares (0.66 dólares por acción), un aumento del 40%
- Los flujos de caja operativos mejoraron un 14% a 1.9 mil millones de dólares
- Se devolvieron 423 millones de dólares a los accionistas a través de dividendos y recompras de acciones
La compañía anunció un nuevo plan de recompra de acciones de 500 millones de dólares hasta abril de 2026 y continúa su dividendo trimestral de 0.055 dólares por acción. Los aspectos destacados del negocio de ADT incluyen el exitoso lanzamiento de su plataforma propietaria ADT+, el lanzamiento del servicio Trusted Neighbor y la implementación del programa de Asistencia Remota ADT, que manejó más del 50% de las solicitudes de servicio de forma virtual en el cuarto trimestre de 2024.
ADT는 2024년 4분기 및 연간 강력한 재무 실적을 보고했으며, 수익 및 현금 흐름에서 상당한 개선을 이루었습니다. 이 회사는 3억 5천 9백만 달러의 기록적인 월간 반복 수익을 달성했으며, 12.7%의 총 수익 이탈률로 고객 유지율을 보였습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 4분기 총 수익이 8% 증가하여 13억 달러에 달했습니다
- 연간 GAAP 계속 운영 수익이 6억 1천 9백만 달러(주당 0.66달러)로 40% 증가했습니다
- 운영 현금 흐름이 14% 증가하여 19억 달러에 달했습니다
- 배당금 및 자사주 매입을 통해 주주에게 4억 2천 3백만 달러를 반환했습니다
회사는 2026년 4월까지 5억 달러 규모의 자사주 매입 계획을 발표했으며, 주당 0.055달러의 분기 배당금을 지속합니다. ADT의 비즈니스 하이라이트에는 자사 플랫폼 ADT+의 성공적인 출시, Trusted Neighbor 서비스의 시작, 2024년 4분기에 50% 이상의 서비스 요청을 가상으로 처리한 ADT 원격 지원 프로그램의 구현이 포함됩니다.
ADT a annoncé de solides résultats financiers pour le quatrième trimestre et l'année complète 2024, avec des améliorations significatives des bénéfices et des flux de trésorerie. L'entreprise a atteint un chiffre d'affaires mensuel récurrent record de 359 millions de dollars et une fidélisation des clients avec un taux d'attrition des revenus bruts de 12,7%.
Les principaux points financiers incluent :
- Le chiffre d'affaires total du Q4 a augmenté de 8% pour atteindre 1,3 milliard de dollars
- Le revenu GAAP de l'année complète provenant des opérations continues a augmenté à 619 millions de dollars (0,66 dollar par action), soit une hausse de 40%
- Les flux de trésorerie d'exploitation ont augmenté de 14% pour atteindre 1,9 milliard de dollars
- 423 millions de dollars ont été restitués aux actionnaires par le biais de dividendes et de rachats d'actions
L'entreprise a annoncé un nouveau plan de rachat d'actions de 500 millions de dollars jusqu'en avril 2026 et continue son dividende trimestriel de 0,055 dollar par action. Les points forts de l'activité d'ADT incluent le déploiement réussi de sa plateforme propriétaire ADT+, le lancement du service Trusted Neighbor et la mise en œuvre du programme d'Assistance à Distance ADT, qui a traité plus de 50% des demandes de service virtuellement au quatrième trimestre 2024.
ADT hat starke Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 gemeldet, mit erheblichen Verbesserungen bei den Erträgen und dem Cashflow. Das Unternehmen erzielte einen rekordverdächtigen wiederkehrenden monatlichen Umsatz von 359 Millionen Dollar und eine Kundenbindung mit einer Brutto-Umsatzabwanderung von 12,7%.
Wichtige finanzielle Höhepunkte sind:
- Der Gesamtumsatz im Q4 stieg um 8% auf 1,3 Milliarden Dollar
- Der GAAP-Einkommen aus fortgeführten Betrieben für das Gesamtjahr stieg auf 619 Millionen Dollar (0,66 Dollar pro Aktie), was einem Anstieg von 40% entspricht
- Die operativen Cashflows verbesserten sich um 14% auf 1,9 Milliarden Dollar
- 423 Millionen Dollar wurden den Aktionären durch Dividenden und Aktienrückkäufe zurückgegeben
Das Unternehmen kündigte einen neuen Aktienrückkaufplan über 500 Millionen Dollar bis April 2026 an und setzt seine vierteljährliche Dividende von 0,055 Dollar pro Aktie fort. Zu den Geschäftshighlights von ADT gehören die erfolgreiche Einführung der eigenen ADT+ Plattform, der Start des Trusted Neighbor Dienstes und die Implementierung des ADT Remote Assistance Programms, das im vierten Quartal 2024 über 50% der Serviceanfragen virtuell bearbeitet hat.
- Record recurring monthly revenue of $359M, up 2%
- Q4 revenue growth of 8% to $1.3B
- GAAP EPS up 40% to $0.66 for full year
- Operating cash flow increased 14% to $1.9B
- Strong customer retention with 12.7% gross revenue attrition
- New $500M share repurchase program announced
- $423M returned to shareholders in 2024
- Increased allowance for credit losses
- Legal settlement charges impacted full-year results
Insights
ADT delivered impressive financial results for Q4 and full-year 2024, showcasing the company's successful execution of its recurring revenue business model while simultaneously expanding its technological capabilities. Revenue increased 8% to $1.3 billion in Q4 and 5% to $4.9 billion for the full year, with the growth primarily driven by higher average prices in monitoring services - the company's most profitable segment.
The company's profitability metrics showed substantial improvement, with GAAP EPS from continuing operations increasing
Cash flow generation was particularly noteworthy, with operating cash flows increasing
The company's technological initiatives - particularly the proprietary ADT+ platform and Remote Assistance program - are driving operational efficiencies. The Remote Assistance program handled over
Looking ahead, ADT's 2025 guidance of
ADT's 2024 results reveal a company successfully executing a critical technological transformation from traditional security provider to integrated smart home platform. The proprietary ADT+ platform represents a strategic inflection point, giving ADT greater control over its technology stack and user experience while reducing dependence on third-party platforms that could eventually become competitors.
The exceptional 4.8-star rating of the ADT+ app across app stores demonstrates that this technological pivot is resonating with customers. This user satisfaction is likely a key driver behind ADT's record customer retention metrics, as the security industry has historically struggled with high churn rates when technology experiences fail to meet expectations.
ADT's Remote Assistance program, now handling over 50% of service requests virtually, showcases successful digital transformation with dual benefits: cost reduction through eliminated truck rolls and improved customer experience through faster resolution times. This represents a textbook example of technology simultaneously improving margins and customer satisfaction.
The Trusted Neighbor feature - recognized as "Home Security Innovation of the Year" at the IoT Breakthrough Awards - indicates ADT's expansion beyond reactive security monitoring into proactive home management solutions. This positions ADT to compete more effectively against tech-first entrants like Ring (Amazon) and Nest (Google) that have been encroaching on the traditional security space.
ADT's nationwide implementation of the Alarm Validation Scoring Standard (AVS-01) leverages data analytics to reduce false alarms and provide more actionable information to first responders. This addresses one of the industry's persistent challenges while creating a competitive differentiator through enhanced public safety integration.
The technology investments appear to be yielding returns through improved customer retention and operational efficiencies. However, ADT faces the ongoing challenge of balancing innovation speed against the reliability requirements essential for security services. As they expand their digital footprint, maintaining robust cybersecurity will be increasingly critical - a security breach could be particularly damaging for a brand built on trust and protection.
Strong full year earnings growth; GAAP EPS up 40%, Adjusted EPS up
GAAP operating cash flows up
Record recurring monthly revenue and customer retention
Returned
Maintaining momentum into 2025 with strong cash flow and new
BOCA RATON, Fla., Feb. 27, 2025 (GLOBE NEWSWIRE) -- ADT Inc. (NYSE: ADT), the most trusted brand in smart home and small business security, today reported results for the fourth quarter and full year of 2024.
Financial highlights for the fourth quarter and full year are below with variances on a year-over-year basis unless otherwise noted. Results of the former commercial and solar segments are presented as discontinued operations, except for cash flow measures.
Fourth Quarter 2024
- Total revenue increased by
8% to$1.3 billion and end-of-period recurring monthly revenue (RMR) increased2% to$359 million ($4.3 billion on an annualized basis) - Record customer retention with gross revenue attrition of
12.7% ; revenue payback at 2.2 years - GAAP income from continuing operations of
$197 million , or$0.21 per diluted share, up$90 million - Adjusted income from continuing operations of
$176 million , or$0.20 per diluted share, up$8 million
Full Year 2024
- GAAP income from continuing operations of
$619 million , or$0.66 per diluted share, up$169 million - Adjusted income from continuing operations of
$685 million , or$0.75 per diluted share, up$136 million - Net cash provided by operating activities of
$1.9 billion , up14% ; Adjusted Free Cash Flow (including interest rate swaps) of$744 million , up42%
“We delivered strong 2024 results including a record-high recurring monthly revenue balance, record customer retention, and very strong cash generation. All delivered while continuing to invest in ADT’s future which includes the launch of our proprietary ADT+ platform enabling unique and differentiated customer offerings such as Trusted Neighbor. Our successful 2024 performance is a testament to the dedication of our nearly 13,000 employees and approximately 140 dealer partners who are committed to serving our customers,” said ADT Chairman, President and CEO, Jim DeVries. “We are maintaining this momentum into the new year, anchored in our plans to again deliver solid growth in cash flow and earnings per share. ADT remains focused on generating value for our shareholders, customers and employees, and we look forward to a successful 2025.”
2024 Business Highlights
- Re-defining Smart Security – In 2024, ADT continued the rollout of its new proprietary ADT+ platform, a next-generation smart home security offering that integrates professional monitoring with Google Nest devices, in an easy to use, all-in-one experience. Trusted Neighbor, a new service that lets customers grant secure, temporary access to their homes through the ADT+ app, launched in the third quarter 2024.
- ADT Remote Assistance – The ADT Remote Assistance program continues to generate high customer satisfaction at a lower cost while eliminating thousands of vehicle trips. In the fourth quarter 2024, more than
50% of ADT service requests were virtual. - ADT Home Security Program for State Farm – ADT’s program for State Farm customers is available in 17 states, with solutions in select states focused on leak detection and self-setup alternatives. Building on learnings and customer feedback from earlier pilot launches, ADT continues to develop tailored packages focused on proactive risk detection and strong customer protection.
- Alarm Scoring live nationwide – ADT is the first company to adopt and implement Alarm Validation Scoring Standard (AVS-01) at the national level. AVS-01 uses historical and real-time information to provide first responders with crucial details, including the severity of the threat, that can help them quickly determine a well-informed plan of action.
- Monitoring Center of the Year – ADT won The Monitoring Association’s Monitoring Center of the Year award, recognizing ADT’s significant contribution to the alarm industry and demonstration of exceptional customer service.
- ADT+ app scores high rating – The ADT+ app has received consistently high ratings and is one of the highest-rated apps in the home security and smart home category, averaging 4.8 stars across thousands of reviews in the Apple App Store and Google Play store.
- Home Security Innovation of the Year – Trusted Neighbor was named “Home Security Innovation of the Year” at the 9th annual IoT Breakthrough Awards. This recognition underscores ADT’s commitment to advancing home security technology and reimagining how ADT connects and protects customers.
- ADT named most trusted brand – For the sixth consecutive year, ADT earned the title of most trusted home security system brand in a study based on consumer ratings conducted by Lifestory Research.
- ADT’s 150th birthday – In August, ADT proudly celebrated its 150th birthday. Employees celebrated by ringing the opening bell at the New York Stock Exchange and partnering with community groups and first responders to showcase ADT’s commitment to keeping every neighborhood in America safe.
- When Every Second Counts – ADT introduced its new brand promise: When Every Second Counts. With this introduction, ADT launched new advertisements on major television networks and streaming services contributing to customer momentum throughout the year.
Results of Continuing Operations (1)(2)
| (in millions, except revenue payback, attrition, and per share data) | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
| 2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||
| Monitoring and related services | $ | 1,085 | $ | 1,054 | $ | 32 | 3 | % | $ | 4,293 | $ | 4,179 | $ | 114 | 3 | % | ||||||||||||||
| Security installation, product, and other | 175 | 119 | 56 | 48 | % | 605 | 474 | 131 | 28 | % | ||||||||||||||||||||
| Total revenue | $ | 1,260 | $ | 1,172 | $ | 88 | 8 | % | $ | 4,898 | $ | 4,653 | $ | 246 | 5 | % | ||||||||||||||
| Income (loss) from continuing operations | $ | 197 | $ | 107 | $ | 90 | 84 | % | $ | 619 | $ | 450 | $ | 169 | 38 | % | ||||||||||||||
| Income (loss) from continuing operations per share - diluted | $ | 0.21 | $ | 0.11 | $ | 0.10 | 91 | % | $ | 0.66 | $ | 0.47 | $ | 0.19 | 40 | % | ||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||||||||||||||||
| Operating activities | $ | 460 | $ | 412 | $ | 48 | 12 | % | $ | 1,885 | $ | 1,658 | $ | 227 | 14 | % | ||||||||||||||
| Investing activities | $ | (261 | ) | $ | 1,231 | $ | (1,492 | ) | N/M | $ | (1,295 | ) | $ | 242 | $ | (1,538 | ) | N/M | ||||||||||||
| Financing activities | $ | (199 | ) | $ | (1,869 | ) | $ | 1,669 | 89 | % | $ | (515 | ) | $ | (2,144 | ) | $ | 1,628 | (76 | )% | ||||||||||
| Non-GAAP Measures | ||||||||||||||||||||||||||||||
| Adjusted EBITDA from continuing operations | $ | 653 | $ | 627 | $ | 26 | 4 | % | $ | 2,578 | $ | 2,481 | $ | 97 | 4 | % | ||||||||||||||
| Adjusted income (loss) from continuing operations | $ | 176 | $ | 168 | $ | 8 | 5 | % | $ | 685 | $ | 549 | $ | 136 | 25 | % | ||||||||||||||
| Adjusted diluted income (loss) per share from continuing operations | $ | 0.20 | $ | 0.18 | $ | 0.02 | 11 | % | $ | 0.75 | $ | 0.60 | $ | 0.15 | 25 | % | ||||||||||||||
| Adjusted Free Cash Flow (including interest rate swaps) | $ | 224 | $ | 117 | $ | 106 | 91 | % | $ | 744 | $ | 525 | $ | 219 | 42 | % | ||||||||||||||
| Other Measures | ||||||||||||||||||||||||||||||
| Trailing twelve-month revenue payback | 2.2 years | 2.1 years | 0.1 years | 5 | % | |||||||||||||||||||||||||
| Trailing twelve-month gross customer revenue attrition | 12.7 | % | 12.9 | % | (20)bps | N/A | ||||||||||||||||||||||||
| RMR | $ | 359 | $ | 353 | $ | 6 | 2 | % | ||||||||||||||||||||||
Total revenue was
Income from continuing operations for the fourth quarter was
Adjusted income from continuing operations for the fourth quarter was
Balance Sheet and Cash Flow
Net cash provided by operating activities during the fourth quarter was
Net cash provided by operating activities for the full year was
Total cash and cash equivalents as of December 31, 2024 were
In the fourth quarter, the Company paid dividends of
In January 2025, the Company repurchased an incremental 15 million shares for
During 2024, the Company completed several transactions reducing debt by
In February 2025, the Company issued a notice of partial redemption for
2025 Financial Outlook
The Company is providing the following financial guidance for 2025.
| (in millions, except per share data) | ||
| Total Revenue | ||
| Adjusted EBITDA | ||
| Adjusted EPS | ||
| Adjusted Free Cash Flow (including interest rate swaps) | ||
| The Company is not providing forward-looking guidance for U.S. GAAP financial measures other than Total Revenue or a quantitative reconciliation to the most directly comparable GAAP measure for its non-GAAP financial guidance shown above because the GAAP measures cannot be reliably estimated and the reconciliations cannot be performed without unreasonable effort due to their dependence on future uncertainties and adjusting items that the Company cannot reasonably predict at this time but which may be material. Please see "Non-GAAP Measures" for additional information. | ||
| Total Revenue, Adjusted EBITDA, and Adjusted EPS reflect continuing operations only. Adjusted Free Cash Flow excludes all remaining cash flows attributable to the discontinued solar business. | ||
Dividend Declaration
Effective Feb. 27, 2025, the Company’s Board of Directors declared a cash dividend of
Share Repurchase Plan
On Feb. 27, 2025, the Company's Board of Directors announced a share repurchase plan (the “2025 Share Repurchase Plan”), pursuant to which the Company is authorized to repurchase, through April 30, 2026, up to a maximum aggregate amount of
The Board of Directors may periodically review the outstanding amount authorized under the Share Repurchase Plan as part of its capital allocation strategy.
_____________________
| (1 | ) | All variances are year-over-year unless otherwise noted. The Company sometimes presents various non-GAAP and other operating measures. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow (including interest rate swaps), Adjusted Income (Loss), Adjusted Diluted Income (Loss) per share (or, Adjusted EPS), Net Debt, and Net Leverage Ratio are non-GAAP measures. Refer to the “Non-GAAP Measures” section for the definitions of the terms and reconciliations to the most comparable GAAP measures for those measures included herein. Operating metrics such as Gross Customer Revenue Attrition, Unit Count, RMR, Gross RMR Additions, and Revenue Payback are approximated as there may be variations to reported results in each period due to certain adjustments the Company might make in connection with the integration over several periods of acquired companies that calculated these metrics differently, or otherwise, including periodic reassessments and refinements in the ordinary course of business. These refinements, for example, may include changes due to systems conversion or historical methodology differences in legacy systems. Results of the commercial and solar businesses are presented as discontinued operations. Except for cash flow measures, and unless otherwise noted, amounts herein reflect the results of the Company’s continuing operations only. |
| (2 | ) | Amounts may not sum due to rounding. |
Conference Call
As previously announced, management will host a conference call at 10 a.m. ET today to discuss the Company’s fourth quarter and full year 2024 results and lead a question-and-answer session. Participants may listen to a live webcast through the investor relations website at investor.adt.com. A replay of the webcast will be available on the website within 24 hours of the live event.
Alternatively, participants may listen to the live call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international), and providing the access code 4948265. An audio replay will be available for one week following the call, and can be accessed by dialing 1-800-770-2030 (domestic) or 1-609-800-9909 (international), and providing the access code 4948265.
A slide presentation highlighting the Company’s results will also be available on the Investor Relations section of the Company’s website. From time to time, the Company may use its website as a channel of distribution of material Company information. Financial and other material information regarding the Company is routinely posted on and accessible at investor.adt.com.
About ADT Inc.
ADT provides safe, smart and sustainable solutions for people, homes and small businesses. Through innovative offerings, unrivaled safety and a premium customer experience, all delivered by the largest networks of smart home security professionals in the U.S., we empower people to protect and connect to what matters most. For more information, visit www.adt.com.
Forward-Looking Statements
ADT has made statements in this press release that are forward-looking and therefore subject to risks and uncertainties, including those described below. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, the Company’s repurchases of shares of its common stock under the 2025 Share Repurchase Plan; the expected costs, benefits and timing of the implementation of the Company’s new enterprise resource planning (ERP) system; timing of the Company’s dividend payment declared on February 27, 2025; the Company’s expected future financial results, including the Company’s ability to reduce debt or improve leverage ratios, or to achieve or maintain its long-term leverage goals; the integration of strategic bulk purchases of customer accounts; the Company’s outlook and/or guidance, which includes Total Revenue, Adjusted EBITDA, Adjusted Diluted Income (Loss) per Share (“Adjusted EPS”) and Adjusted Free Cash Flow (including interest rate swaps); any stated or implied outcomes with regard to the foregoing; the expected timing of the Company’s partial redemption of
| ADT INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||||||
| 2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||
| Monitoring and related services | $ | 1,085 | $ | 1,054 | $ | 32 | 3 | % | $ | 4,293 | $ | 4,179 | $ | 114 | 3 | % | ||||||||||||||
| Security installation, product, and other | 175 | 119 | 56 | 48 | % | 605 | 474 | 131 | 28 | % | ||||||||||||||||||||
| Total revenue | 1,260 | 1,172 | 88 | 8 | % | 4,898 | 4,653 | 246 | 5 | % | ||||||||||||||||||||
| Cost of revenue (exclusive of depreciation and amortization shown separately below): | ||||||||||||||||||||||||||||||
| Monitoring and related services | 157 | 152 | 5 | 3 | % | 617 | 604 | 13 | 2 | % | ||||||||||||||||||||
| Security installation, product, and other | 78 | 33 | 44 | 133 | % | 230 | 147 | 82 | 56 | % | ||||||||||||||||||||
| Total cost of revenue | 234 | 185 | 50 | 27 | % | 847 | 752 | 95 | 13 | % | ||||||||||||||||||||
| Selling, general, and administrative expenses | 371 | 347 | 24 | 7 | % | 1,476 | 1,348 | 129 | 10 | % | ||||||||||||||||||||
| Depreciation and intangible asset amortization | 341 | 327 | 14 | 4 | % | 1,343 | 1,335 | 7 | 1 | % | ||||||||||||||||||||
| Merger, restructuring, integration, and other | 9 | 7 | 3 | 39 | % | 24 | 39 | (15 | ) | (38 | )% | |||||||||||||||||||
| Operating income (loss) | 305 | 307 | (2 | ) | (1 | )% | 1,208 | 1,179 | 29 | 2 | % | |||||||||||||||||||
| Interest expense, net | (82 | ) | (169 | ) | 87 | 51 | % | (441 | ) | (570 | ) | 129 | 23 | % | ||||||||||||||||
| Loss on extinguishment of debt | — | (14 | ) | 14 | N/M | (5 | ) | (17 | ) | 12 | N/M | |||||||||||||||||||
| Other income (expense) | 4 | 10 | (6 | ) | (64 | )% | 53 | 12 | 41 | N/M | ||||||||||||||||||||
| Income (loss) from continuing operations before income taxes and equity in net earnings (losses) of equity method investee | 227 | 134 | 93 | 69 | % | 815 | 604 | 211 | 35 | % | ||||||||||||||||||||
| Income tax benefit (expense) | (29 | ) | (41 | ) | 11 | 28 | % | (196 | ) | (161 | ) | (35 | ) | (22 | )% | |||||||||||||||
| Income (loss) from continuing operations before equity in net earnings (losses) of equity method investee | 197 | 93 | 104 | N/M | 619 | 444 | 176 | 40 | % | |||||||||||||||||||||
| Equity in net earnings (losses) of equity method investee | — | 14 | (14 | ) | N/M | — | 7 | (7 | ) | N/M | ||||||||||||||||||||
| Income (loss) from continuing operations | 197 | 107 | 90 | 84 | % | 619 | 450 | 169 | 38 | % | ||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | (7 | ) | 469 | (476 | ) | N/M | (118 | ) | 13 | (131 | ) | N/M | ||||||||||||||||||
| Net income (loss) | $ | 190 | $ | 576 | $ | (386 | ) | (67 | )% | $ | 501 | $ | 463 | $ | 38 | 8 | % | |||||||||||||
| Common Stock: | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations per share - basic | $ | 0.22 | $ | 0.12 | $ | 0.69 | $ | 0.49 | ||||||||||||||||||||||
| Income (loss) from continuing operations per share - diluted | $ | 0.21 | $ | 0.11 | $ | 0.66 | $ | 0.47 | ||||||||||||||||||||||
| Net income (loss) per share - basic | $ | 0.21 | $ | 0.63 | $ | 0.56 | $ | 0.51 | ||||||||||||||||||||||
| Net income (loss) per share - diluted | $ | 0.20 | $ | 0.59 | $ | 0.52 | $ | 0.48 | ||||||||||||||||||||||
| Weighted-average shares outstanding - basic | 832 | 858 | 847 | 857 | ||||||||||||||||||||||||||
| Weighted-average shares outstanding - diluted | 895 | 919 | 909 | 919 | ||||||||||||||||||||||||||
| Class B Common Stock: | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations per share - basic | $ | 0.22 | $ | 0.12 | $ | 0.69 | $ | 0.49 | ||||||||||||||||||||||
| Income (loss) from continuing operations per share - diluted | $ | 0.21 | $ | 0.11 | $ | 0.66 | $ | 0.47 | ||||||||||||||||||||||
| Net income (loss) per share - basic | $ | 0.21 | $ | 0.63 | $ | 0.56 | $ | 0.51 | ||||||||||||||||||||||
| Net income (loss) per share - diluted | $ | 0.20 | $ | 0.59 | $ | 0.52 | $ | 0.48 | ||||||||||||||||||||||
| Weighted-average shares outstanding - basic | 55 | 55 | 55 | 55 | ||||||||||||||||||||||||||
| Weighted-average shares outstanding - diluted | 55 | 55 | 55 | 55 | ||||||||||||||||||||||||||
Note: amounts may not sum due to rounding
| ADT INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) | |||||
| December 31, 2024 | December 31, 2023 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 96 | $ | 15 | |
| Restricted cash and restricted cash equivalents | 108 | 115 | |||
| Accounts receivable, net | 394 | 370 | |||
| Inventories, net | 197 | 201 | |||
| Prepaid expenses and other current assets | 211 | 242 | |||
| Current assets of discontinued operations | — | 61 | |||
| Total current assets | 1,005 | 1,005 | |||
| Property and equipment, net | 247 | 254 | |||
| Subscriber system assets, net | 2,981 | 3,006 | |||
| Intangible assets, net | 4,854 | 4,877 | |||
| Goodwill | 4,904 | 4,904 | |||
| Deferred subscriber acquisition costs, net | 1,324 | 1,176 | |||
| Other assets | 735 | 699 | |||
| Noncurrent assets of discontinued operations | — | 43 | |||
| Total assets | $ | 16,051 | $ | 15,964 | |
| Liabilities and stockholders' equity | |||||
| Current liabilities: | |||||
| Current maturities of long-term debt | $ | 196 | $ | 312 | |
| Accounts payable | 154 | 277 | |||
| Deferred revenue | 248 | 255 | |||
| Accrued expenses and other current liabilities | 635 | 556 | |||
| Current liabilities of discontinued operations | 32 | 80 | |||
| Total current liabilities | 1,264 | 1,480 | |||
| Long-term debt | 7,511 | 7,513 | |||
| Deferred subscriber acquisition revenue | 2,068 | 1,915 | |||
| Deferred tax liabilities | 1,167 | 1,027 | |||
| Other liabilities | 224 | 219 | |||
| Noncurrent liabilities of discontinued operations | 16 | 21 | |||
| Total liabilities | 12,250 | 12,175 | |||
| Total stockholders' equity | 3,801 | 3,789 | |||
| Total liabilities and stockholders' equity | $ | 16,051 | $ | 15,964 | |
Note: amounts may not sum due to rounding
| ADT INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income (loss) | $ | 190 | $ | 576 | $ | 501 | $ | 463 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
| Depreciation and intangible asset amortization | 341 | 330 | 1,345 | 1,389 | |||||||||||
| Amortization of deferred subscriber acquisition costs | 59 | 50 | 225 | 196 | |||||||||||
| Amortization of deferred subscriber acquisition revenue | (89 | ) | (81 | ) | (346 | ) | (309 | ) | |||||||
| Share-based compensation expense | 9 | 8 | 49 | 51 | |||||||||||
| Deferred income taxes | 52 | 118 | 140 | 125 | |||||||||||
| Provision for losses on receivables and inventory | 69 | 47 | 215 | 151 | |||||||||||
| Loss on extinguishment of debt | 5 | 17 | 5 | 17 | |||||||||||
| Goodwill, intangible, and other asset impairments | 3 | 7 | 24 | 529 | |||||||||||
| (Gain) loss on sales of businesses | 10 | (649 | ) | 10 | (649 | ) | |||||||||
| Unrealized (gain) loss on interest rate swap contracts | (16 | ) | 77 | 45 | 38 | ||||||||||
| Other non-cash items, net | (88 | ) | (3 | ) | (34 | ) | 100 | ||||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||||||||
| Deferred subscriber acquisition costs | (95 | ) | (91 | ) | (366 | ) | (387 | ) | |||||||
| Deferred subscriber acquisition revenue | 56 | 68 | 252 | 290 | |||||||||||
| Other, net | (46 | ) | (61 | ) | (178 | ) | (346 | ) | |||||||
| Net cash provided by (used in) operating activities | 460 | 412 | 1,885 | 1,658 | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Dealer generated customer accounts and bulk account purchases | (112 | ) | (203 | ) | (586 | ) | (589 | ) | |||||||
| Subscriber system asset expenditures | (117 | ) | (150 | ) | (523 | ) | (631 | ) | |||||||
| Purchases of property and equipment | (34 | ) | (46 | ) | (164 | ) | (176 | ) | |||||||
| Proceeds (payments) from sale of business, net of cash sold | 3 | 1,609 | (18 | ) | 1,609 | ||||||||||
| Proceeds (payments) from interest rate swaps | (2 | ) | — | (8 | ) | — | |||||||||
| Other investing, net | — | 20 | 3 | 29 | |||||||||||
| Net cash provided by (used in) investing activities | (261 | ) | 1,231 | (1,295 | ) | 242 | |||||||||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from long-term borrowings | 98 | 217 | 1,069 | 867 | |||||||||||
| Proceeds from receivables facility | 39 | 69 | 229 | 282 | |||||||||||
| Proceeds (payments) from interest rate swaps | 21 | 24 | 93 | 83 | |||||||||||
| Repurchases of common stock | (147 | ) | — | (241 | ) | — | |||||||||
| Repayment of long-term borrowings, including call premiums | (98 | ) | (2,073 | ) | (1,186 | ) | (2,962 | ) | |||||||
| Repayment of receivables facility | (54 | ) | (56 | ) | (257 | ) | (200 | ) | |||||||
| Dividends on common stock | (50 | ) | (32 | ) | (182 | ) | (129 | ) | |||||||
| Payments on finance leases | (6 | ) | (11 | ) | (29 | ) | (44 | ) | |||||||
| Proceeds (payments) from opportunity fund | (7 | ) | (9 | ) | (7 | ) | (9 | ) | |||||||
| Other financing, net | 5 | 2 | (4 | ) | (32 | ) | |||||||||
| Net cash provided by (used in) financing activities | (199 | ) | (1,869 | ) | (515 | ) | (2,144 | ) | |||||||
| Cash and cash equivalents and restricted cash and restricted cash equivalents: | |||||||||||||||
| Net increase (decrease) | (1 | ) | (226 | ) | 74 | (244 | ) | ||||||||
| Beginning balance | 205 | 356 | 130 | 374 | |||||||||||
| Ending balance | $ | 204 | $ | 130 | $ | 204 | $ | 130 | |||||||
Note: amounts may not sum due to rounding
ADT sometimes uses information (“non-GAAP financial measures”) that is derived from the consolidated financial statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under SEC rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.
The following information includes definitions of the Company’s non-GAAP financial measures used in this release, reasons management believes these measures are useful to investors regarding the Company’s financial condition and results of operations, additional purposes, if any, for which management uses the non-GAAP financial measures, and limitations to using these non-GAAP financial measures, as well as reconciliations of these non-GAAP financial measures to the most comparable GAAP measures. Each non-GAAP financial measure is presented following the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The limitations of non-GAAP financial measures are best addressed by considering these measures in conjunction with the appropriate GAAP measures. In addition, computations of these non-GAAP measures may not be comparable to other similarly titled measures reported by other companies.
With regard to the Company’s financial guidance for 2025, the Company is not providing a quantitative reconciliation for forward-looking Adjusted EBITDA to GAAP income (loss) from continuing operations, Adjusted EPS to GAAP diluted income (loss) per share from continuing operations, or Adjusted Free Cash Flow (including interest rate swaps) to GAAP net cash provided by operating activities, which are the most directly comparable respective GAAP measures. These GAAP measures cannot be reliably predicted or estimated without unreasonable effort due to their dependence on future uncertainties, such as the adjustment of items used in the following reconciliations. Additionally, information not currently available to the Company about other adjusting items could have a potentially unpredictable and potentially significant impact on future GAAP financial results.
Unless otherwise noted, non-GAAP measures herein reflect the results of the Company’s continuing operations. Through the second quarter of 2024, Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow (including interest rate swaps) reflect the results of both continuing and discontinued operations. Beginning in the third quarter of 2024, all remaining cash flows attributable to activities of the solar business have been excluded from these measures as the business was substantially wound down.
Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow including interest rate swaps
The Company defines Free Cash Flow as cash flows from operating activities less cash outlays related to capital expenditures. The Company defines capital expenditures to include accounts purchased through the Company’s network of authorized dealers or third parties outside of the Company’s authorized dealer network, subscriber system asset expenditures, and purchases of property and equipment. These items are subtracted from cash flows from operating activities because they represent long-term investments that are required for normal business activities.
The Company defines Adjusted Free Cash Flow as Free Cash Flow adjusted for net cash flows related to (i) net proceeds or payments from the Company’s consumer receivables facility; (ii) restructuring and integration payments; (iii) integration-related capital expenditures; and (iv) transaction costs and other payments or receipts that may mask operating results or business trends. Adjusted Free Cash Flow including interest rate swaps reflects Adjusted Free Cash Flow plus net cash settlements on interest rate swaps presented outside of net cash provided by (used in) operating activities.
The Company believes the presentations of these non-GAAP measures are appropriate to provide investors with useful information about the Company’s ability to repay debt, make other investments, and pay dividends. The Company believes the presentation of Adjusted Free Cash Flow is also a useful measure of the cash flow attributable to normal business activities, inclusive of the net cash flows associated with the acquisition of subscribers, as well as the Company’s ability to repay other debt, make other investments, and pay dividends. Further, Adjusted Free Cash Flow including interest rate swaps is a useful measure of Adjusted Free Cash Flow inclusive of all cash interest.
There are material limitations to using these non-GAAP measures. These non-GAAP measures adjust for cash items that are ultimately within management’s discretion to direct, and therefore, may imply that there is less or more cash available than the most comparable GAAP measure. These non-GAAP measures are not intended to represent residual cash flow for discretionary expenditures since debt repayment requirements and other non-discretionary expenditures are not deducted.
The non-GAAP measures in the table below include cash flows associated with both continuing and discontinued operations consistent with the applicable GAAP presentation on the Statement of Cash Flows.
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by (used in): | |||||||||||||||
| Operating activities | $ | 460 | $ | 412 | $ | 1,885 | $ | 1,658 | |||||||
| Investing activities | $ | (261 | ) | $ | 1,231 | $ | (1,295 | ) | $ | 242 | |||||
| Financing activities | $ | (199 | ) | $ | (1,869 | ) | $ | (515 | ) | $ | (2,144 | ) | |||
| Net cash provided by (used in) operating activities | $ | 460 | $ | 412 | $ | 1,885 | $ | 1,658 | |||||||
| Dealer generated customer accounts and bulk account purchases | (112 | ) | (203 | ) | (586 | ) | (589 | ) | |||||||
| Subscriber system asset expenditures | (117 | ) | (150 | ) | (523 | ) | (631 | ) | |||||||
| Purchases of property and equipment | (34 | ) | (46 | ) | (164 | ) | (176 | ) | |||||||
| Free Cash Flow | 197 | 13 | 612 | 262 | |||||||||||
| Net proceeds (payments) from receivables facility | (15 | ) | 14 | (28 | ) | 81 | |||||||||
| Restructuring and integration payments(1) | 3 | 16 | 33 | 43 | |||||||||||
| Tax payments associated with gain on divestitures | — | 25 | — | 25 | |||||||||||
| Other, net(2) | 20 | 26 | 42 | 30 | |||||||||||
| Adjusted Free Cash Flow | $ | 205 | $ | 94 | $ | 659 | $ | 442 | |||||||
| Interest rate swaps presented outside operating activities(3) | 19 | 24 | 85 | 83 | |||||||||||
| Adjusted Free Cash Flow (including interest rate swaps) | $ | 224 | $ | 117 | $ | 744 | $ | 525 | |||||||
Note: amounts may not sum due to rounding
_______________________
(1) During 2024, primarily includes costs related to the ADT Solar Exit. During 2023, primarily includes costs associated with the solar business.
(2) During 2024, primarily includes net payments related to the solar business, settlement costs associated with the termination of our pension plan, and third-party costs associated with a multi-year implementation of a new ERP system that the Company will not continue to incur once the ERP system is fully implemented. During 2023, primarily includes separation costs related to the Commercial Divestiture.
(3) Includes net settlements related to interest rate swaps presented outside of net cash provided by (used in) operating activities.
Adjusted EBITDA from Continuing Operations (“Adjusted EBITDA”) and Adjusted EBITDA Margin from Continuing Operations (“Adjusted EBITDA Margin”)
The Company believes Adjusted EBITDA is useful to investors to measure the operational strength and performance of its business. The Company believes the presentation of Adjusted EBITDA is useful as it provides investors additional information about operating profitability adjusted for certain non-cash items, non-routine items the Company does not expect to continue at the same level in the future, as well as other items not core to its operations. Further, the Company believes Adjusted EBITDA provides a meaningful measure of operating profitability because the Company uses it for evaluating business performance, making budgeting decisions, and comparing company performance against other peer companies using similar measures.
The Company defines Adjusted EBITDA as income (loss) from continuing operations adjusted for (i) interest; (ii) taxes; (iii) depreciation and amortization, including depreciation of subscriber system assets and other fixed assets and amortization of dealer and other intangible assets; (iv) amortization of deferred costs and deferred revenue associated with subscriber acquisitions; (v) share-based compensation expense; (vi) merger, restructuring, integration, and other items; (vii) impairment charges; and (viii) non-cash, non-routine, or other adjustments or charges not necessary to operate our business.
There are material limitations to using Adjusted EBITDA as it does not include certain significant items which directly affect income (loss) from continuing operations (the most comparable GAAP measure).
The discussion above is also applicable to Adjusted EBITDA margin, which is calculated as Adjusted EBITDA as a percentage of total revenue.
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Income (loss) from continuing operations | $ | 197 | $ | 107 | $ | 619 | $ | 450 | |||||||
| Interest expense, net | 82 | 169 | 441 | 570 | |||||||||||
| Income tax expense (benefit) | 29 | 41 | 196 | 161 | |||||||||||
| Depreciation and intangible asset amortization | 341 | 327 | 1,343 | 1,335 | |||||||||||
| Amortization of deferred subscriber acquisition costs | 59 | 50 | 225 | 188 | |||||||||||
| Amortization of deferred subscriber acquisition revenue | (89 | ) | (81 | ) | (346 | ) | (302 | ) | |||||||
| Share-based compensation expense | 9 | 8 | 49 | 39 | |||||||||||
| Merger, restructuring, integration and other(1) | 9 | 7 | 24 | 39 | |||||||||||
| Unrealized gain (loss) on interest rate swaps(2) | 3 | 17 | 18 | 17 | |||||||||||
| Other, net(3) | 11 | (16 | ) | 10 | (16 | ) | |||||||||
| Adjusted EBITDA from continuing operations | $ | 653 | $ | 627 | $ | 2,578 | $ | 2,481 | |||||||
| Income (loss) from continuing operations to total revenue ratio | 16 | % | 9 | % | 13 | % | 10 | % | |||||||
| Adjusted EBITDA Margin (as percentage of Total Revenue) | 52 | % | 53 | % | 53 | % | 53 | % | |||||||
Note: amounts may not sum due to rounding
_______________________
(1) During 2024, primarily relates to restructuring costs. During 2023, primarily includes integration and third-party strategic optimization costs, as well as restructuring costs.
(2) Includes the unrealized gain or loss on interest rate swaps presented in other income (expense).
(3) During 2023 primarily represents the gain on sale of a business and other investment, partially offset by loss on extinguishment of debt.
Adjusted Income (Loss) from Continuing Operations (“Adjusted Income (Loss)”) and Adjusted Diluted Income (Loss) per Share from Continuing Operations (“Adjusted Diluted Income (Loss) per Share” or “Adjusted EPS”)
The Company defines Adjusted Income (Loss) as income (loss) from continuing operations adjusted for (i) merger, restructuring, integration, and other; (ii) share-based compensation expense; (iii) unrealized gains and losses on interest rate swap contracts not designated as hedges; (iv) impairment charges; (v) non-cash, non-routine, or other adjustments or charges not necessary to operate our business; and (vi) the impact these adjusted items have on taxes.
Adjusted Diluted Income (Loss) per share is Adjusted Income (Loss) divided by diluted weighted-average shares outstanding of common stock. When the control number for the GAAP calculation is negative, diluted weighted-average shares outstanding of common stock does not include the assumed conversion of Class B common stock and other potential shares, such as share-based compensation awards, to shares of common stock.
The Company believes Adjusted Income (Loss) and Adjusted Diluted Income (Loss) per share are benchmarks used by analysts and investors who follow the industry for comparison of its performance with other companies in the industry, although these measures may not be directly comparable to similar measures reported by other companies.
There are material limitations to using these measures, as they do not reflect certain significant items which directly affect income (loss) from continuing operations and related per share amounts (the most comparable GAAP measures).
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Income (loss) from continuing operations | $ | 197 | $ | 107 | $ | 619 | $ | 450 | |||||||
| Merger, restructuring, integration, and other(1) | 9 | 7 | 24 | 39 | |||||||||||
| Share-based compensation expense | 9 | 8 | 49 | 39 | |||||||||||
| Interest rate swaps, net(2) | (16 | ) | 77 | 45 | 64 | ||||||||||
| Other, net(3) | 11 | (16 | ) | 10 | (16 | ) | |||||||||
| Tax impact on adjustments(4) | (35 | ) | (15 | ) | (62 | ) | (27 | ) | |||||||
| Adjusted Income (Loss) from continuing operations | $ | 176 | $ | 168 | $ | 685 | $ | 549 | |||||||
| Weighted-average shares outstanding - diluted(5): | |||||||||||||||
| Common Stock | 895 | 919 | 909 | 919 | |||||||||||
| Class B Common Stock | 55 | 55 | 55 | 55 | |||||||||||
| Income (loss) per share from continuing operations - diluted: | |||||||||||||||
| Common Stock | $ | 0.21 | $ | 0.11 | $ | 0.66 | $ | 0.47 | |||||||
| Class B Common Stock | $ | 0.21 | $ | 0.11 | $ | 0.66 | $ | 0.47 | |||||||
| Adjusted Diluted Income (Loss) per share(6) | $ | 0.20 | $ | 0.18 | $ | 0.75 | $ | 0.60 | |||||||
Note: amounts may not sum due to rounding.
_______________________
(1) During 2024, primarily relates to restructuring costs. During 2023, primarily includes integration and third-party strategic optimization costs, as well as restructuring costs.
(2) Primarily includes unrealized (gains) or losses on interest rate swaps presented in interest expense, net and other income (expense). During 2023, includes
(3) During 2023 primarily represents the gain on sale of a business and other investment, partially offset by loss on extinguishment of debt.
(4) Represents the tax impact on adjustments, using the federal and state blended statutory rate. During 2024, also includes tax reserve releases of approximately
(5) Refer to the Company’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K for further discussion regarding the computation of diluted weighted-average shares outstanding of common stock.
(6) Calculated as Adjusted Income (Loss) divided by diluted weighted-average shares outstanding of common stock.
Leverage Ratios
Net Leverage Ratio is calculated as the ratio of net debt to last twelve months (“LTM”) Adjusted EBITDA from continuing operations. Net debt is calculated as total debt excluding the Receivables Facility, including capital leases, minus cash and cash equivalents. Refer to the discussion on Adjusted EBITDA for descriptions of the differences between Adjusted EBITDA and net income (loss) from continuing operations, which is the most comparable GAAP measure. The Company believes Net Leverage Ratio is a useful measure of the Company's credit position and progress towards leverage targets. There are material limitations to using Net Leverage Ratio as the Company may not always be able to use cash to repay debt on a dollar-for-dollar basis.
| (in millions) | December 31, 2024 | December 31, 2023 | |||
| Total debt (book value)(1) | $ | 7,707 | $ | 7,826 | |
| LTM Income (loss) from continuing operations | $ | 619 | $ | 450 | |
| Debt to income (loss) from continuing operations ratio | 12.4x | 17.4x | |||
| (in millions) | December 31, 2024 | December 31, 2023 | |||||
| Revolver | $ | — | $ | — | |||
| Term loans | 1,984 | 2,001 | |||||
| First lien and ADT notes | 4,100 | 4,200 | |||||
| Receivables facility | 408 | 436 | |||||
| Finance leases and other(2) | 69 | 88 | |||||
| Total first lien debt | $ | 6,561 | $ | 6,724 | |||
| Second lien notes | 1,300 | 1,300 | |||||
| Total debt(3) | $ | 7,861 | $ | 8,024 | |||
| Less: Cash and cash equivalents | (96 | ) | (15 | ) | |||
| Less: Receivables Facility | (408 | ) | (436 | ) | |||
| Net debt | $ | 7,357 | $ | 7,574 | |||
| LTM Adjusted EBITDA from continuing operations | $ | 2,578 | $ | 2,481 | |||
| Net leverage ratio | 2.9x | 3.1x | |||||
Note: amounts may not sum due to rounding
_______________________
(1) Excludes Solar finance leases consistent with the GAAP presentation as a discontinued operation.
(2) Includes debt related to Solar business.
(3) Debt instruments are stated at face value.
FAQ
What was ADT's revenue growth in Q4 2024?
How much did ADT return to shareholders in 2024?
What is ADT's new share repurchase plan for 2025?
What was ADT's recurring monthly revenue (RMR) in Q4 2024?
How much did ADT's operating cash flow improve in 2024?
