Adt Inc. · NYSE:ADT
Adt — Debt Investor Presentation (January 2021)
23 slides from Adt's debt investor presentation, Jan 19, 2021
Slide 1: Lender Presentation January 19th, 2021
Lender Presentation January 19th, 2021 Exhibit 99.1
Slide 2: Disclaimer
This presentation (the “Presentation”) has been prepared by ADT Inc. (the “Company”) and Prime Security Services Borrower, LLC (the “Borrower”) in connection with the repricing of its existing first lien senior secured term loan facility (the “Facility”), solely for informational purposes. The infor
Slide 3: Forward-looking statements
The Company has made statements in this Presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this document are, or co
Slide 4: Non-GAAP financial measures
To provide investors with additional information in connection with our results, as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose Adjusted EBITDA, Adjusted EBITDA margin, Covenant Adjusted EBITDA (Pre-SAC), Free Cash Flow, Adjusted
Slide 5: Call Participants
Deepika Yelamanchi Vice President & Treasurer, ADT Jeff Likosar Chief Financial Officer, ADT Bradford Aston Managing Director, Barclays Jim DeVries President and Chief Executive Officer, ADT Call Participants
Slide 6: Transaction Overview
Transaction Overview
Slide 7: Transaction overview and terms of repricing
ADT Inc. ("ADT" or the "Company”) is a leading provider of security, automation, and smart home solutions serving consumer and business customers in the United States The Borrower is launching a repricing of its existing First Lien Senior Secured Term Loan due 2026 The pricing and terms of the trans
Slide 8: Pro Forma Capitalization and Sources and Uses of Funds
Pro Forma Capitalization Sources and Uses of Funds Notes: Repricing to be documented under the Refinancing Term Loan provision of the First Lien Credit Agreement dated July 1, 2015, as amended and restated May 2, 2016, June 23, 2016, December 28, 2016, February 13, 2017, June 29, 2017, March 16, 201
Slide 9: Summary of Terms: Senior Secured Term Loan Facility
Borrower Prime Security Services Borrower, LLC (The “Borrower”) Facilities $2,779 million 1st Lien Senior Secured Term Loan B due 2026 (same as existing First Lien Senior Secured Term Loan) Applicable Margin LIBOR + 275 bps (LIBOR + 325 bps currently) LIBOR Floor 0.75% (1.00% currently) Issue Price
Slide 10: Transaction timeline
Summary of Terms: Senior Secured Term Loan Facility January 2021 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Date Event January 19, 2021 Lender Call January 21, 2021 at 5:00 PM ET Commitments Due January 28, 2021 Close and Fund
Slide 11: Business Overview and Recent Update
Business Overview and Recent Update
Slide 12: Revenue by Customer Type
Revenue by Customer Type Revenue Breakout RESIDENTIAL & SMALL BUSINESS COMMERCIAL Note: Above figures are presented as of September 30, 2020; revenue is presented on a trailing 12 months basis as of September 30, 2020. ADT is the Leader in Security & Automation In-field smart home and security exper
Slide 13: Macro Dynamics and ADT Initiatives
Increased demand for security driven by recent national events heightening awareness for home monitoring offerings Increasing de-urbanization, particularly following COVID-19 pandemic, will drive new demand Continuing acceleration of smart home adoption Household formation increasing with millennial
Slide 14: ADT + Google Partnership to Build Next-Generation Smart and Helpful Home
Best-in-Class Hardware next-generation features, easier to install, higher quality, modern aesthetics Optimal Technology Partner video analytics, data analytics, complementary strength to facilitate growth in smart and helpful home and broadens DIY offering Joint ADT + Google Branding #1 in security
Slide 15: Internal initiatives and favorable macro trends continue to benefit ADT
Internal initiatives and favorable macro trends continue to benefit ADT Accelerating availability of offerings from Google partnership Launched initiative to develop and own next-generation interactive platform Revenue and Growth Robust Cash Flow & EBITDA Generation Strengthen Residential Platform P
Slide 16: Affirming 2020 Financial Outlook
On November 5, 2020, the Company updated its full year 2020 financial outlook to the following The Company is in the process of preparing its consolidated financial statements for the fourth quarter and full year ending December 31, 2020 and expects to release its final 2020 financial results near t
Slide 17: Appendix
Appendix
Slide 18: Market Profile (LTM 9/30/20)
Market Profile (LTM 9/30/20) Residential Small Business Large / Multi-Site Total Unit Count ~5,800K ~500K ~250K ~6,500K Ending RMR $281M $30M $27M $337M M&S Revenue $3,378M $394M $420M $4,191M Installation Revenue(1) $482M $32M $593M $1,107M New RMR Additions $42M $5M $4M $51M Revenue Payback ~2.4x
Slide 19: Strength Across Key Financial and Operating Metrics
For the nine months ended ($ in millions) Sep 30, 2020 Sep 30, 2019(1) Y/Y Change Y/Y Change % Monitoring and Service Revenue $3,133 $3,249 ($116) (4%) Total Revenue $4,000 $3,827 $173 5% Net Loss ($520) ($352) ($168) (48%) Adjusted EBITDA $1,666 $1,876 ($210) (11%) Adjusted Free Cash Flow $532 $459
Slide 20: Adjusted Free Cash Flow bridge, three and nine months ended Sep 30, 2020
For the three months ended For the nine months ended ($ in millions) Sep 30, 2020 Sep 30, 2019 Y/Y Change Sep 30, 2020 Sep 30, 2019 Y/Y Change Adjusted EBITDA $564 $624 ($61) $1,666 $1,876 ($210) Less: Capitalized SAC(1) (270) (300) 31 (590) (891) 301 Plus: Net Proceeds from Consumer Receivables Fac
Slide 21: Adjusted EBITDA and Covenant Adjusted EBITDA (Pre-SAC)
Adjusted EBITDA, Adjusted EBITDA Margin, and Covenant Adjusted EBITDA (Pre-SAC): Notes: Represents costs, net of any incremental revenue earned, associated with replacing cellular technology used in many of our security systems pursuant to a replacement program. Represents fees expensed associated w
Slide 22: Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow and Adjusted Free Cash Flow: Note: The three months ended March 31, 2020 included $81 million related to the settlement of a pre-existing relationship in connection with the Defenders acquisition. This was partially offset by $39 million advance payment received for estimated charge-b
Slide 23: Debt to Net Income Ratio and Net Leverage Ratios
Debt to Net Income Ratio: Notes: Adjusted to reflect the impact of the $300M repayment of the first lien term loan on December 15, 2020 on debt, cash and cash equivalents, and cash interest. Pro Forma financial information represents the preliminary estimated impact associated with the proposed Tran