APX — Q3 2014 Earnings Presentation
21 slides from APX's earnings presentation, Nov 17, 2014
Slide 1: Financial and Operating Highlights Third Quarter 2014
APX Group Holdings, Inc. Financial and Operating Highlights Third Quarter 2014
Slide 2: Forward-looking statements
forward-looking statements This presentation contains “forward looking statements”, including but not limited to, statements related to the performance of our business, our financial results, our liquidity and capital resources, our plans, strategies and prospects, both business and financial and ot
Slide 3: Non-GAAP financial measures
non-GAAP financial measures This presentation includes Adjusted EBITDA and Steady-State Free Cash Flow (“SSFCF”), which are supplemental measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). Adjusted EBITDA and SSF
Slide 4: Participants
participants Todd Pedersen Chief Executive Officer Alex Dunn President Mark Davies Chief Financial Officer Dale R. Gerard VP, Finance & Treasurer 4
Slide 5: The Vivint vision: a smart, integrated home
the vivint vision: a smart, integrated home… Connecting and Simplifying Life Vivint Platform Harnessing the “internet-of-things” Core Competencies Customer Customer Integrated Innovation Acquisition Service Technology Vivint has delivered the most complete smart home platform in the industry Our pro
Slide 6: 2014 key initiatives update
2014 key initiatives update Vivint Sky Operating Platform Processes 86.4 million daily inbound data points Captures and stores 2.3 million video clips per day, allowing for anytime, anywhere secured access 160,000+ subscribers using the platform Continued Progress With Wireless Internet Service Offe
Slide 7: APX Group third quarter 2014 highlights
APX Group third quarter 2014 highlights Three Months ended September 30, Total revenues up +13.4% VPY Adjusted EBITDA(1) $78.8 million 73,220 New subscribers Issued $100 million of senior notes due 2020 Acquired data cloud storage technology Issued $50 million dividend Nine Months ended September 30
Slide 8: APX Group key operating results
APX Group key operating results ($ in Millions) Three months ended September 30, Nine months ended September 30, Revenue Adj. EBITDA SSFCF Revenue Adj. EBITDA $411.2 $368.2 $334.5 $204.2 $197.9 $212.5 $225.3 $181.6 $180.2 $146.9 $124.6 $129.5 $69.3 $77.7 $78.8 2012 2013 2014 2012 2013 2014 2012 2013
Slide 9: Subscriber portfolio data
subscriber portfolio data Three months ended September 30, Total RMR(1) Total Subscribers Avg RMR(1) Per Subscriber ($ in Millions) 899,174 $54.48 $49.0 803,413 $42.6 681,834 $53.00 $34.6 $50.67 2012 2013 2014 2012 2013 2014 2012 2013 2014 Growth: 23.1% 15.0% Growth: 17.8% 11.9% Growth: 4.6% 2.8% (1
Slide 10: New subscriber data
new subscriber data Three months ended September 30, Nine months ended September 30, Three months ended September 30, Total New Subscribers Total New Subscribers Avg RMR(1) per New Subscriber IS D2H IS D2H 198,595 182,919 165,007 37,154 $62.81 34,720 78,309 24,435 73,220 63,386 12,732 12,113 9,447 $
Slide 11: Subscriber account attrition
subscriber account attrition(1) (# of Subscriber Accounts) (2,185) 203,358 (105,412) 899,174 213,935 (92,356) 803,413 174,246 (58,103) 681,834 9.7% Annualized 13.0% Annualized 12.8% Annualized 565,691 Attrition Attrition Attrition Sep-11 New Contract Attrition Sep-12 New Contract Attrition Additions
Slide 12: Summary
summary Vivint Sky Operating Platform IT System Implementation Brand Data Cloud Storage Technology Wireless Internet Service Platform Investments Cycle Nearing Completion 12
Slide 13: Q & A
Q & A
Slide 14: Consolidated Financial Statements Three and Nine Months Ended September 30, 2014 and 2013
APX Group Holdings, Inc. Consolidated Financial Statements Three and Nine Months Ended September 30, 2014 and 2013
Slide 15: Condensed consolidated balance sheets
condensed consolidated balance sheets APX Group Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (In thousands) Se pte mbe r 30, De ce mbe r 31, 2014 2013 ASSETS Current Assets: Cash and cash equivalents $ 67,186 $ 261,905 Restricted cash and cash equivalents 14,214
Slide 16: Consolidated statements of operations
consolidated statements of operations APX Group Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2014 2013 2014 2013 Revenues: Monitoring revenue $ 140,227 $ 123,329 $ 393,383 $
Slide 17: Summary of consolidated statements of cash flows
summary of consolidated statements of cash flows APX Group Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited) (In thousands) Nine Months Ended September 30, 2014 2013 Net loss $ (173,015) $ (87,341) Net cash provided by operating activities 91,656 139,671 Net
Slide 18: Annex A
APX Group Holdings, Inc. Annex A
Slide 19: Reconciliation of non-GAAP financial measures – APX Group
reconciliation of non-GAAP financial measures – APX Group Three Months Ended September 30, Nine Months Ended September 30, ($ in Millions) 2014 2013 2012 2014 2013 2012 Net loss $ (59.5) $ (34.9) $ (10.5) $ (173.0) $ (87.3) $ (39.8) Interest expense, net 37.8 29.6 29.5 108.0 82.2 89.9 Other (income)
Slide 20: Reconciliation of non-GAAP continued—other adjustments
Reconciliation of non-GAAP continued—other adjustments Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2012 2014 2013 2012 Other Adjustments Product development $ 2.4 $ 3.1 $— $ 9.4 $ 8.0 $ - Fire related losses, net of probable insurance recoveries ( 1.8 ) —— 0.9 — - Purc
Slide 21: Certain definitions
certain definitions Total Subscribers – The aggregate number of active subscribers at the end of a given period RMR – The recurring monthly revenue billed to a subscriber Total RMR – The aggregate RMR billed for all subscribers Ave. RMR per Subscriber – The Total RMR divided by Total Subscribers. Th