Vivint Announces Fourth Quarter and Full Year 2021 Results
Vivint Smart Home (NYSE: VVNT) reported record results for Q4 and full-year 2021, achieving an 18% revenue growth to $1.48 billion. The company added over 360,000 new subscribers, with total subscribers reaching 1.85 million. Notably, the attrition rate dropped to a 14-quarter low of 11.3%. Adjusted EBITDA improved by $90.3 million to $669.1 million, while free cash flow reached $65.2 million. For 2022, Vivint forecasts subscriber growth to between 1.95 and 2.00 million, with revenue expectations of $1.60 to $1.63 billion.
- Revenue increased by $227.1 million (18.1%) YoY to $1.48 billion
- Adjusted EBITDA rose by $90.3 million to $669.1 million
- Net loss improved by $297.8 million to $305.6 million
- Attrition rate improved to 11.3%, the lowest in 14 quarters
- Free cash flow generated was $65.2 million
- Total subscribers grew by 9.4% YoY to 1,855,141
- Net loss of $305.6 million remains significant
Originated record 360,509 new subscribers as revenue grew
“Last year was extraordinary for Vivint,” said
“Many of the underlying metrics of the business showed strong improvement year over year, leading to expanded growth in adjusted EBITDA and strong cash flow generation in the face of significant inflationary pressures,” said
Fourth Quarter Financial Highlights (vs. prior-year period)
-
Revenue increased by
$65.3 million $396.2 million 19.7% -
Net loss improved by
$131.3 million $53.5 million -
Adjusted EBITDA(a) increased by
$33.8 million $178.4 million
Full Year Financial Highlights (vs. prior-year period)
-
Revenue increased by
$227.1 million $1.48 billion 18.1% -
Net loss improved by
$297.8 million $305.6 million -
Adjusted EBITDA(a) increased by
$90.3 million $669.1 million -
Attrition rate improved by 110 basis points to
11.3% , the lowest rate in 14 quarters -
Total Subscribers grew by
9.4% to 1,855,141 -
Generated
$65.2 million
Business Highlights
Awards & Recognition:
-
Recognized as “Best Professionally Installed Security System” for the third consecutive year by
U.S. News & World Report -
Received “Editor's Choice Award” for all-in-one security and home automation by
PC Magazine - Named to Newsweek's list of the “Most Loved Workplaces for 2021”
-
Made Inc. Magazine’s first annual “Best-Led Companies” list
Smart Energy:
- Announced partnerships with Freedom Forever, Mosaic, and Sunrun
- Laid out vision to combine energy production and consumption controlled by an integrated platform that uses data-infused AI to manage power consumption more intelligently
- Sold more than 45 megawatts of solar in 2021, bringing smart energy to about 5,000 homes
-
Laid out vision to develop a smart insurance solution that leverages the
Vivint ecosystem to help insurance providers better price the risk of a customer who has a professionally installed smart home system -
Began process of becoming a Managing
General Agent which will allowVivint to develop specific homeowner insurance options and provide a higher level of savings for our customers
Full Year 2022 Guidance
- Total subscribers between 1.95 million and 2.00 million
-
Total revenue between
$1.60 billion $1.63 billion -
Adjusted EBITDA(a) between
$725 million $745 million -
Free cash flow(a) between
$67 million $77 million
Reconciliations of Adjusted EBITDA to net loss and Free Cash Flow to net cash provided by operating activities are not available on a forward-looking basis without unreasonable efforts due to the high variability, complexity, and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations, including net loss and adjustments that could be made for impairment charges, restructuring charges and the timing and magnitude of other amounts included in the reconciliations. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
a) This earnings release includes Adjusted EBITDA, Covenant Adjusted EBITDA, and Free Cash Flow metrics that are not calculated in accordance with Generally Accepted Accounting Principles in the
Conference Call Information
Summary of Quarterly Key Financial and Portfolio Metrics ($ in millions, except for subscriber data) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
2020 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
Total Revenues |
$ |
330.9 |
|
$ |
342.3 |
|
$ |
354.1 |
|
$ |
386.7 |
|
$ |
396.2 |
|
|||||
Net Loss |
$ |
(184.8 |
) |
$ |
(88.8 |
) |
$ |
(70.5 |
) |
$ |
(92.7 |
) |
$ |
(53.5 |
) |
|||||
Adjusted EBITDA(a) |
$ |
144.6 |
|
$ |
160.7 |
|
$ |
159.6 |
|
$ |
170.4 |
|
$ |
178.4 |
|
|||||
Adjusted EBITDA Margin |
|
43.7 |
% |
|
46.9 |
% |
|
45.1 |
% |
|
44.1 |
% |
|
45.0 |
% |
|||||
LTM Covenant Adjusted EBITDA(a) |
$ |
891.8 |
|
$ |
913.2 |
|
$ |
957.3 |
|
$ |
1,004.1 |
|
$ |
1,050.7 |
|
|||||
LTM Covenant Adjusted EBITDA Margin |
|
71.2 |
% |
|
70.6 |
% |
|
71.1 |
% |
|
71.0 |
% |
|
71.0 |
% |
|||||
New Subscribers(1) |
|
58,554 |
|
|
60,127 |
|
|
121,599 |
|
|
114,380 |
|
|
64,403 |
|
|||||
Total Subscribers(1) |
|
1,695,498 |
|
|
1,706,069 |
|
|
1,781,469 |
|
|
1,843,744 |
|
|
1,855,141 |
|
|||||
Total Monthly Service Revenue(1) |
$ |
83.0 |
|
$ |
82.1 |
|
$ |
84.5 |
|
$ |
86.4 |
|
$ |
86.7 |
|
|||||
Avg Monthly Service Revenue per User(1) |
$ |
48.95 |
|
$ |
48.12 |
|
$ |
47.45 |
|
$ |
46.88 |
|
$ |
46.71 |
|
|||||
Total Monthly Recurring Revenue |
$ |
109.8 |
|
$ |
112.0 |
|
$ |
114.4 |
|
$ |
121.5 |
|
$ |
125.2 |
|
|||||
Avg Monthly Recurring Revenue per User |
$ |
64.73 |
|
$ |
65.84 |
|
$ |
65.39 |
|
$ |
66.39 |
|
$ |
67.58 |
|
|||||
Attrition Rate(2) |
|
12.4 |
% |
|
11.8 |
% |
|
11.6 |
% |
|
11.4 |
% |
|
11.3 |
% |
|||||
(1) |
Excludes subscribers from sales pilot initiatives |
|
(2) |
Attrition Rate is reported on LTM basis for each period end & excludes subscribers from sales pilot initiatives |
About the Company
Forward-Looking Statements
This earnings release and accompanying conference call include certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including statements regarding, among other things, the Company’s plans, strategies and prospects, both business and financial, including without limitation the information under the heading “Full Year Outlook” in this press release. These statements are based on the beliefs and assumptions of the Company’s management. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions.
Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, in addition to those discussed in "Risk Factors" and elsewhere in the Company's most recent Annual Report on Form 10-K for the year ended
- the duration and scope of the COVID-19 pandemic;
- actions governments, the company's counterparties, and the company's customers or potential customers take in response to the COVID-19 pandemic;
- the impact of the pandemic and actions taken in response to the pandemic on the global economies and economic activity;
- the pace of recovery when the COVID-19 pandemic subsides;
- the impact of the COVID-19 pandemic on our liquidity and capital resources, including the impact of the pandemic on our customers and timing of payments, the sufficiency of credit facilities, and the company's compliance with lender covenants;
- the ineffectiveness of steps we take to reduce operating costs;
- risks of the smart home and security industry, including risks of and publicity surrounding the sales, subscriber origination and retention process;
- the highly competitive nature of the smart home and security industry and product introductions and promotional activity by our competitors;
- litigation, complaints, product liability claims and/or adverse publicity;
- the impact of changes in consumer spending patterns, consumer preferences, local, regional, and national economic conditions, crime, weather and demographic trends;
- adverse publicity and product liability claims;
- increases and/or decreases in utility and other energy costs, increased costs related to utility or governmental requirements;
- cost increases or shortages in smart home and security technology products or components including disruptions in our supply chains;
- the introduction of unsuccessful new Smart Home initiatives, products or services;
- privacy and data protection laws, privacy or data breaches, or the loss of data;
- the impact to our business, results of operations, financial condition, regulatory compliance and customer experience of the Vivint Flex Pay plan;
- risks related to our exposure to variable rates of interest with respect to our revolving credit facility and term loan facility;
- our inability to maintain effective internal control over financial reporting; and
- our inability to attract and retain employees due to labor shortages.
In addition, the origination and retention of new subscribers will depend on various factors, including, but not limited to, market availability, subscriber interest, the availability of suitable components, the negotiation of acceptable contract terms with subscribers, local permitting, licensing and regulatory compliance, and our ability to manage anticipated expansion and to hire, train and retain personnel, the financial viability of subscribers and general economic conditions.
The Company undertakes no obligations to update or revise publicly any forward-looking statements, whether a result of new information, future events, or otherwise, except as required by law.
Certain Definitions
Total Subscribers - is the aggregate number of active smart home and security subscribers at the end of a given period.
Total Monthly Recurring Revenue - or Total MRR, is the average total monthly recurring revenue recognized during a given period.
Average Monthly Recurring Revenue per User - or AMRRU, is Total MRR divided by average monthly Total Subscribers during a given period.
Total Monthly Service Revenue - or MSR, is the contracted recurring monthly service billings to our smart home and security subscribers, based on the Total Subscribers number as of the end of a given period.
Average Monthly Service Revenue per User - or AMSRU, is Total MSR divided by Total Subscribers at the end of a given period.
Adjusted EBITDA Margin - is Adjusted EBITDA as a percent of revenue.
Covenant Adjusted EBITDA Margin - is Covenant Adjusted EBITDA as a percent of revenue.
Net Loss Margin - is net loss as a percent of revenue.
Attrition Rate - is the aggregate number of canceled smart home and security subscribers during the prior 12-month period divided by the monthly weighted average number of Total Subscribers based on the Total Subscribers at the beginning and end of each month of a given period. Subscribers are considered canceled when they terminate in accordance with the terms of their contract, are terminated by us or if payment from such subscribers is deemed uncollectible (when at least four monthly billings become past due). If a sale of a service contract to third parties occurs, or a subscriber relocates but continues their service, we do not consider this as a cancellation. If a subscriber transfers their service contract to a new subscriber, we do not consider this a cancellation.
Average Subscriber Lifetime - in number of months, is
Net Service Cost per Subscriber - is the average monthly service costs incurred during the period (both period and capitalized service costs), including monitoring, customer service, field service and other service support costs, less total non-recurring smart home services billings and cellular network maintenance fees for the period, divided by average monthly Total Subscribers for the same period.
Net Service Margin - is the monthly average MSR for the period, less total average net service costs for the period divided by the monthly average MSR for the period.
New Subscribers - is the aggregate number of net new smart home and security subscribers originated during a given period. This metric excludes new subscribers acquired by the transfer of a service contract from one subscriber to another.
Net Subscriber Acquisition Costs per New Subscriber - is the net cash cost to create new smart home and security subscribers during a given 12-month period divided by New Subscribers for that period. These costs include commissions, Products, installation, marketing, sales support and other allocations (general and administrative and overhead); less upfront payments received from the sale of Products associated with the initial installation, and installation fees. Upfront payments reflect gross proceeds prior to deducting fees related to consumer financing of Products. These costs exclude capitalized contract costs and upfront proceeds associated with contract modifications.
Total Monthly Service Revenue for New Subscribers - is the contracted recurring monthly service billings to our New Subscribers during the prior 12-month period.
Average Monthly Service Revenue per New Subscriber - is the Total Monthly Service Revenue for New Subscribers divided by New Subscribers during the prior 12-month period.
Consolidated Statements of Operations (In thousands; unaudited) |
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Three Months Ended |
|
Years Ended |
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|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Recurring and other revenue |
|
$ |
396,214 |
|
|
$ |
330,908 |
|
|
$ |
1,479,388 |
|
|
$ |
1,252,267 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
98,012 |
|
|
|
94,615 |
|
|
|
384,365 |
|
|
|
352,343 |
|
Selling expenses |
|
|
79,017 |
|
|
|
106,774 |
|
|
|
379,497 |
|
|
|
302,287 |
|
General and administrative expenses |
|
|
79,045 |
|
|
|
87,651 |
|
|
|
268,312 |
|
|
|
267,923 |
|
Depreciation and amortization |
|
|
153,589 |
|
|
|
147,442 |
|
|
|
601,452 |
|
|
|
570,831 |
|
Restructuring expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,941 |
|
Total costs and expenses |
|
|
409,663 |
|
|
|
436,482 |
|
|
|
1,633,626 |
|
|
|
1,514,325 |
|
Loss from operations |
|
$ |
(13,449 |
) |
|
$ |
(105,574 |
) |
|
$ |
(154,238 |
) |
|
$ |
(262,058 |
) |
Other expenses (income): |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
38,012 |
|
|
|
50,380 |
|
|
|
184,993 |
|
|
|
221,175 |
|
Interest income |
|
|
(252 |
) |
|
|
(421 |
) |
|
|
(532 |
) |
|
|
(708 |
) |
Change in fair value of warrant liabilities |
|
|
531 |
|
|
|
29,357 |
|
|
|
(50,107 |
) |
|
|
109,250 |
|
Other (income) loss, net |
|
|
(247 |
) |
|
|
(868 |
) |
|
|
14,489 |
|
|
|
10,473 |
|
Total other expenses |
|
|
38,044 |
|
|
|
78,448 |
|
|
|
148,843 |
|
|
|
340,190 |
|
Loss before income taxes |
|
|
(51,493 |
) |
|
|
(184,022 |
) |
|
|
(303,081 |
) |
|
|
(602,248 |
) |
Income tax expense |
|
|
1,971 |
|
|
|
759 |
|
|
|
2,471 |
|
|
|
1,083 |
|
Net loss |
|
$ |
(53,464 |
) |
|
$ |
(184,781 |
) |
|
$ |
(305,552 |
) |
|
$ |
(603,331 |
) |
Consolidated Balance Sheets (In thousands; unaudited) |
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|
|
|
||||||
|
|
|
||||||
|
|
|
2021 |
|
|
|
2020 |
|
ASSETS |
|
|
|
|||||
Current Assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
208,509 |
|
|
$ |
313,799 |
|
|
Accounts and notes receivable, net |
|
63,671 |
|
|
|
64,697 |
|
|
Inventories |
|
51,251 |
|
|
|
47,299 |
|
|
Prepaid expenses and other current assets |
|
19,385 |
|
|
|
14,338 |
|
|
Total current assets |
|
342,816 |
|
|
|
440,133 |
|
|
|
|
|
|
|||||
Property, plant and equipment, net |
|
55,448 |
|
|
|
52,379 |
|
|
Capitalized contract costs, net |
|
1,405,442 |
|
|
|
1,318,498 |
|
|
Deferred financing costs, net |
|
2,088 |
|
|
|
1,667 |
|
|
Intangible assets, net |
|
51,928 |
|
|
|
111,474 |
|
|
|
|
837,153 |
|
|
|
837,077 |
|
|
Operating lease right-of-use assets |
|
46,000 |
|
|
|
52,880 |
|
|
Long-term notes receivables and other assets, net |
|
44,753 |
|
|
|
58,317 |
|
|
Total assets |
$ |
2,785,628 |
|
|
$ |
2,872,425 |
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|||||
Current Liabilities: |
|
|
|
|||||
Accounts payable |
$ |
96,317 |
|
|
$ |
85,656 |
|
|
Accrued payroll and commissions |
|
83,347 |
|
|
|
87,943 |
|
|
Accrued expenses and other current liabilities |
|
236,250 |
|
|
|
247,324 |
|
|
Deferred revenue |
|
429,900 |
|
|
|
327,632 |
|
|
Current portion of notes payable, net |
|
13,500 |
|
|
|
9,500 |
|
|
Current portion of operating lease liabilities |
|
12,033 |
|
|
|
12,135 |
|
|
Current portion of finance lease liabilities |
|
2,854 |
|
|
|
3,356 |
|
|
Total current liabilities |
|
874,201 |
|
|
|
773,546 |
|
|
|
|
|
|
|||||
Notes payable, net |
|
2,317,515 |
|
|
|
2,372,235 |
|
|
Notes payable, net - related party |
|
381,330 |
|
|
|
443,865 |
|
|
Finance lease liabilities, net of current portion |
|
1,416 |
|
|
|
2,460 |
|
|
Deferred revenue, net of current portion |
|
778,214 |
|
|
|
621,182 |
|
|
Operating lease liabilities |
|
41,713 |
|
|
|
49,692 |
|
|
Warrant derivative liabilities |
|
24,564 |
|
|
|
75,531 |
|
|
Other long-term obligations |
|
106,135 |
|
|
|
121,235 |
|
|
Deferred income tax liabilities |
|
640 |
|
|
|
2,168 |
|
|
Total liabilities |
|
4,525,728 |
|
|
|
4,461,914 |
|
|
Total stockholders’ deficit |
|
(1,740,100 |
) |
|
|
(1,589,489 |
) |
|
Total liabilities and stockholders’ deficit |
$ |
2,785,628 |
|
|
$ |
2,872,425 |
|
|
Summary Cash Flow Data (In thousands; unaudited) |
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|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net cash (used in) provided by operating activities |
$ |
(59,676 |
) |
|
$ |
3,855 |
|
|
$ |
82,454 |
|
|
$ |
226,664 |
|
|
Net cash used in investing activities |
|
(7,444 |
) |
|
|
(2,959 |
) |
|
|
(17,481 |
) |
|
|
(11,663 |
) |
|
Net cash (used in) provided by financing activities |
|
(4,505 |
) |
|
|
17,151 |
|
|
|
(170,216 |
) |
|
|
94,112 |
|
|
Effect of exchange rate changes on cash |
|
(18 |
) |
|
|
70 |
|
|
|
(47 |
) |
|
|
137 |
|
|
Net (decrease) increase in cash and cash equivalents |
|
(71,643 |
) |
|
|
18,117 |
|
|
|
(105,290 |
) |
|
|
309,250 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents: |
|
|
|
|
|
|
|
|||||||||
Beginning of period |
|
280,152 |
|
|
|
295,682 |
|
|
|
313,799 |
|
|
|
4,549 |
|
|
End of period |
$ |
208,509 |
|
|
$ |
313,799 |
|
|
$ |
208,509 |
|
|
$ |
313,799 |
|
|
Statement Regarding Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation (or non-cash compensation), certain financing fees, changes in the fair value of the derivative liability associated with our public and private warrants and certain other non-recurring expenses or gains.
Adjusted EBITDA margin is defined as Adjusted EBITDA as a percent of revenue.
During the first quarter of 2021, in connection with our re-assessment of our accounting for our public and private warrants, we updated our definition of “Adjusted EBITDA” to exclude the impact of changes in the fair value of the derivative liability associated with our public and private warrants. We do not consider changes in the fair value of the warrants to be directly attributable to our operations and we believe that excluding the impact of changes in the fair value of the warrants from our calculation of Adjusted EBITDA results in a metric that better reflects the results of our operations. Prior period disclosures of Adjusted EBITDA were updated to conform to our updated definition of Adjusted EBITDA.
Adjusted EBITDA is not defined under GAAP and is subject to important limitations. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-GAAP financial measures as used by the Company may not be comparable to similarly titled amounts used by other companies.
Management believes that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors, and other interested parties in their evaluation of the operating performance of companies in industries similar to ours. In addition, targets based on Adjusted EBITDA are among the measures we use to evaluate our management’s performance for purposes of determining their compensation under our incentive plans.
Covenant Adjusted EBITDA
Covenant Adjusted EBITDA is defined as net income (loss) before interest expense (net of interest income), income and franchise taxes and depreciation and amortization (including amortization of capitalized subscriber acquisition costs), further adjusted to exclude the effects of certain contract sales to third parties, non-capitalized subscriber acquisition costs, stock based compensation, changes in the fair value of the derivative liability associated with our public and private warrants and certain unusual, non-cash, non-recurring and other items permitted in certain covenant calculations under the agreements governing our Notes and the Credit Agreement.
We believe that the presentation of Covenant Adjusted EBITDA is appropriate to provide additional information to investors about the calculation of, and compliance with, certain financial covenants contained in the agreements governing the Notes and the Credit Agreement governing the Revolving Credit Facility and the Term Loan Facility. We caution investors that amounts presented in accordance with our definition of Covenant Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers and analysts calculate Covenant Adjusted EBITDA in the same manner.
Covenant Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity.
Free Cash Flow
Free Cash Flow is defined as net cash (used in) provided by operating activities less capital expenditures.
See the following tables for quantitative reconciliations of Adjusted EBITDA and Covenant Adjusted EBITDA, for historical periods, to Net Loss and Free Cash Flow, for historical periods, to net cash provided by operating activities, which we believe are the most comparable financial measures calculated in accordance with GAAP.
Reconciliation of Non-GAAP Financial Measures: Adjusted EBITDA (In millions; unaudited) |
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Three Months Ended |
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Years Ended |
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2021 |
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|
2021 |
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|
2021 |
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|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Net loss |
$ |
(53.5 |
) |
|
$ |
(92.7 |
) |
|
$ |
(70.5 |
) |
|
$ |
(88.8 |
) |
|
$ |
(184.8 |
) |
|
$ |
(305.6 |
) |
|
$ |
(603.3 |
) |
|
$ |
(400.7 |
) |
|
Interest expense, net |
|
37.8 |
|
|
|
47.0 |
|
|
|
49.9 |
|
|
|
49.8 |
|
|
|
49.9 |
|
|
|
184.5 |
|
|
|
220.5 |
|
|
|
260.0 |
|
|
Income tax expense (benefit), net |
|
2.0 |
|
|
|
(1.0 |
) |
|
|
1.3 |
|
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0.2 |
|
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|
0.8 |
|
|
|
2.5 |
|
|
|
1.1 |
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1.2 |
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Depreciation |
|
4.2 |
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|
3.9 |
|
|
|
4.3 |
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|
|
4.1 |
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4.4 |
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16.5 |
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20.2 |
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25.5 |
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Amortization (i) |
|
149.5 |
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|
147.4 |
|
|
|
145.3 |
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|
|
142.8 |
|
|
|
142.9 |
|
|
|
585.0 |
|
|
|
550.6 |
|
|
|
518.1 |
|
|
Stock-based compensation (ii) |
|
22.8 |
|
|
|
29.0 |
|
|
|
27.6 |
|
|
|
87.0 |
|
|
|
81.0 |
|
|
|
166.4 |
|
|
|
198.2 |
|
|
|
3.8 |
|
|
Consumer financing fees (iii) |
|
12.2 |
|
|
|
11.8 |
|
|
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10.2 |
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|
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9.3 |
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8.7 |
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43.6 |
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27.7 |
|
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|
16.8 |
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Loss contingency (iv) |
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— |
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— |
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— |
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— |
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13.2 |
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— |
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23.2 |
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— |
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CEO transition (v) |
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3.0 |
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3.0 |
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5.8 |
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— |
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— |
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11.8 |
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|
|
— |
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|
|
— |
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Change in fair value of warrant derivative liabilities (vi) |
|
0.5 |
|
|
|
(15.3 |
) |
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|
(6.2 |
) |
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(29.1 |
) |
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29.4 |
|
|
|
(50.1 |
) |
|
|
109.3 |
|
|
|
— |
|
|
Restructuring expenses (vii) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20.9 |
|
|
|
— |
|
|
Other (income) expense, net (viii) |
|
(0.1 |
) |
|
|
37.3 |
|
|
|
(8.1 |
) |
|
|
(14.6 |
) |
|
|
(0.9 |
) |
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|
14.5 |
|
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10.4 |
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(7.7 |
) |
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Adjusted EBITDA |
$ |
178.4 |
|
|
$ |
170.4 |
|
|
$ |
159.6 |
|
|
$ |
160.7 |
|
|
$ |
144.6 |
|
|
$ |
669.1 |
|
|
$ |
578.8 |
|
|
$ |
417.0 |
|
|
Net loss margin |
|
(14 |
) % |
|
|
(24 |
) % |
|
|
(20 |
) % |
|
|
(26 |
) % |
|
|
(56 |
) % |
|
|
(21 |
) % |
|
|
(48 |
) % |
|
|
(35 |
) % |
|
Adjusted EBITDA margin |
|
45 |
% |
|
|
44 |
% |
|
|
45 |
% |
|
|
47 |
% |
|
|
44 |
% |
|
|
45 |
% |
|
|
46 |
% |
|
|
36 |
% |
|
(i) |
Excludes loan amortization costs that are included in interest expense |
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(ii) |
Reflects stock-based compensation costs related to employee and director stock incentive plans |
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(iii) |
Reflects the reduction to revenue related to the amortization of certain financing fees incurred under the Vivint Flex Pay program |
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(iv) |
Loss contingency accrual relating to regulatory matters |
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(v) |
Hiring and severance expenses associated with CEO transition |
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(vi) |
Reflects the change in fair value of the derivative liability associated with our public and private warrants |
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(vii) |
Employee severance and termination benefits expenses associated with restructuring plans |
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(viii) |
Primarily consists of changes in our consumer finance program derivative instrument, foreign currency exchange, and other gains/losses associated with financings and other transactions |
Reconciliation of Non-GAAP Financial Measures: Covenant Adjusted EBITDA (In millions; unaudited) |
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LTM Period Ended |
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2021 |
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|
2021 |
|
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|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Net loss |
$ |
(305.6 |
) |
|
$ |
(436.9 |
) |
|
$ |
(455.6 |
) |
|
$ |
(545.1 |
) |
|
$ |
(603.3 |
) |
|
$ |
(400.7 |
) |
|
Interest expense, net |
|
184.5 |
|
|
|
196.7 |
|
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|
200.6 |
|
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|
205.2 |
|
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|
220.5 |
|
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|
260.0 |
|
|
Other expense (income), net |
|
14.5 |
|
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|
13.9 |
|
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(30.6 |
) |
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(26.9 |
) |
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10.4 |
|
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|
(7.7 |
) |
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Income tax expense (benefit), net |
|
2.5 |
|
|
|
1.3 |
|
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|
2.5 |
|
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|
2.1 |
|
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|
1.1 |
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1.3 |
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|
Restructuring expenses (i) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20.9 |
|
|
|
— |
|
|
Depreciation and amortization (ii) |
|
76.5 |
|
|
|
79.0 |
|
|
|
82.4 |
|
|
|
85.7 |
|
|
|
89.6 |
|
|
|
106.2 |
|
|
Amortization of capitalized contract costs |
|
525.0 |
|
|
|
516.3 |
|
|
|
505.5 |
|
|
|
492.8 |
|
|
|
481.2 |
|
|
|
437.4 |
|
|
Non-capitalized contract costs (iii) |
|
343.1 |
|
|
|
333.7 |
|
|
|
303.8 |
|
|
|
273.4 |
|
|
|
268.5 |
|
|
|
273.8 |
|
|
Stock-based compensation (iv) |
|
166.4 |
|
|
|
224.5 |
|
|
|
254.1 |
|
|
|
274.5 |
|
|
|
198.2 |
|
|
|
3.7 |
|
|
Change in fair value of warrant derivative liabilities (v) |
|
(50.1 |
) |
|
|
(21.3 |
) |
|
|
(5.0 |
) |
|
|
63.4 |
|
|
|
109.3 |
|
|
|
— |
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Other adjustments (vi) |
|
93.9 |
|
|
|
96.9 |
|
|
|
99.6 |
|
|
|
88.1 |
|
|
|
95.4 |
|
|
|
58.1 |
|
|
Covenant Adjusted EBITDA |
$ |
1,050.7 |
|
|
$ |
1,004.1 |
|
|
$ |
957.3 |
|
|
$ |
913.2 |
|
|
$ |
891.8 |
|
|
$ |
732.1 |
|
|
(i) |
Employee severance and termination benefits expenses associated with restructuring plans |
|
(ii) |
Excludes loan amortization costs that are included in interest expense |
|
(iii) |
Reflects subscriber acquisition costs that are expensed as incurred because they are not directly related to the acquisition of specific subscribers. Certain other industry participants purchase subscribers through subscriber contract purchases, and as a result, may capitalize the full cost to purchase these subscriber contracts, as compared to our organic generation of new subscribers, which requires us to expense a portion of our subscriber acquisition costs under GAAP. |
|
(iv) |
Reflects stock-based compensation costs related to employee and director stock incentive plans |
|
(v) |
Reflects the change in fair value of the derivative liability associated with our public and private warrants |
|
(vi) |
Includes certain items such as product development costs, |
Reconciliation of Non-GAAP Financial Measures: Free Cash Flow (In millions; unaudited) |
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|
Three Months Ended |
|
Years Ended |
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||||||||||||
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Net cash (used in) provided by operating activities |
$ |
(59.7 |
) |
|
$ |
3.9 |
|
|
$ |
(98.8 |
) |
|
$ |
82.5 |
|
|
$ |
226.7 |
|
|
$ |
(221.6 |
) |
|
Capital expenditures |
|
(7.1 |
) |
|
|
(16.6 |
) |
|
|
(3.0 |
) |
|
|
(17.3 |
) |
|
|
(25.2 |
) |
|
|
(10.1 |
) |
|
Free Cash Flow |
$ |
(66.8 |
) |
|
$ |
(12.7 |
) |
|
$ |
(101.8 |
) |
|
$ |
65.2 |
|
|
$ |
201.5 |
|
|
$ |
(231.7 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220224005955/en/
VP, Investor Relations
801-221-6724
ir@vivint.com
Source:
FAQ
What were Vivint's revenue results for Q4 2021?
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What is the attrition rate for Vivint in Q4 2021?
What is the adjusted EBITDA for Vivint in 2021?
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