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ADT ADT

ADT is a leading provider of security, automation, and smart home solutions serving consumer and business customers through more than 200 locations, 9 monitoring centers, and the largest network of security professionals in the United States. The company offers many ways to help protect customers by delivering lifestyle-driven solutions via professionally installed, do-it-yourself, mobile, and digital-based offerings for residential, small business, and larger commercial customers.

Company profile

Ticker
ADT
Exchange
Website
CEO
James D. DeVries
Employees
Incorporated
Location
Fiscal year end
Former names
ADT, Inc., Prime Security Services Parent, Inc.
SEC CIK

ADT stock data

(
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Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

4 Aug 21
23 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from ADT earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 156.51M 156.51M 156.51M 156.51M 156.51M 156.51M
Cash burn (monthly) (positive/no burn) (positive/no burn) 55.62M 41.28M (positive/no burn) (positive/no burn)
Cash used (since last report) n/a n/a 210.17M 155.99M n/a n/a
Cash remaining n/a n/a -53.66M 515.07K n/a n/a
Runway (months of cash) n/a n/a -1.0 0.0 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
17 Oct 21 Likosar Jeffrey Common Stock Payment of exercise Dispose F No No 8.48 11,025 93.49K 2,088,144
5 Oct 21 Africk Andrew Common Stock Grant Acquire A No No 0 41 0 55,560
5 Oct 21 Harty Harriet K Common Stock Grant Acquire A No No 0 562 0 157,583
5 Oct 21 James David DeVries Common Stock Grant Acquire A No No 0 5,563 0 3,682,468.5
5 Oct 21 Daniel Bresingham Common Stock Grant Acquire A No No 0 734 0 1,954,355.5

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

13F holders
Current Prev Q Change
Total holders 184 187 -1.6%
Opened positions 39 40 -2.5%
Closed positions 42 53 -20.8%
Increased positions 50 61 -18.0%
Reduced positions 63 58 +8.6%
13F shares
Current Prev Q Change
Total value 12.78B 11.65B +9.7%
Total shares 1.35B 1.33B +1.2%
Total puts 1.46M 1.29M +13.8%
Total calls 2.22M 2.81M -21.0%
Total put/call ratio 0.7 0.5 +44.1%
Largest owners
Shares Value Change
Apollo Management Holdings GP 608.93M $4.78B 0.0%
Apollo Management 608.93M $6.57B 0.0%
Alliancebernstein 17.25M $186.17M +563.9%
Ariel Investments 15.31M $165.24M NEW
Vanguard 15.16M $163.63M +1.2%
Miller Value Partners 13.66M $147.4M +4.7%
TROW T. Rowe Price 9.18M $99.03M +1.1%
BLK Blackrock 7M $75.48M -5.2%
Partners Group Holding 6.65M $71.78M 0.0%
BK Bank Of New York Mellon 5.8M $62.58M +50.8%
Largest transactions
Shares Bought/sold Change
Ariel Investments 15.31M +15.31M NEW
Alliancebernstein 17.25M +14.65M +563.9%
Greenvale Capital 2.56M -6.15M -70.6%
Greenlight Capital 0 -2.79M EXIT
Contour Asset Management 0 -2.4M EXIT
Deprince Race & Zollo 76.27K -2.29M -96.8%
BK Bank Of New York Mellon 5.8M +1.95M +50.8%
Greenhouse Funds LLLP 0 -1.58M EXIT
Intrinsic Edge Capital Management 1.52M +1.52M NEW
Aqr Capital Management 482.28K -1.38M -74.1%

Financial report summary

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Risks
  • Our future growth is dependent upon our ability to keep pace with rapid technological and industry changes through a combination of partnerships with third parties, our own internal development, and by acquisition, in order to obtain and maintain new technologies for our products and service introductions that achieve market acceptance with acceptable margins.
  • We sell our products and services in highly competitive markets, including the home security and automation markets and the commercial fire and security markets, which may result in pressure on our profit margins and limit our ability to maintain or increase the market share of our products and services.
  • Police departments could refuse to respond to calls from monitored security service companies.
  • Our reputation as a service provider of high-quality security offerings may be materially adversely affected by product defects or shortfalls in customer service.
  • If the insurance industry changes its practice of providing incentives to homeowners for the use of alarm monitoring services, we may experience a reduction in new customer growth or an increase in our subscriber attrition rate.
  • We have invested and will continue to invest in new businesses, services, and technologies outside the traditional security and interactive services market, which is inherently risky and could disrupt our current operations.
  • Unauthorized use of our brand names by third parties, and the expenses incurred in developing and preserving the value of our brand names, may materially adversely affect our business.
  • Third parties hold rights to certain of our key brand names outside of the U.S.
  • The COVID-19 Pandemic has had and could continue to have a significant negative impact on our employees, our customers, our suppliers, and our ability to carry on our normal operations given its impact on the economy generally, as well as the resulting “shelter in place” and other operational requirements we have or must continue to adhere to, or which could be reinstituted upon a re-emergence of COVID-19 in a particular jurisdiction, any of which could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
  • We rely on a significant number of our customers remaining with us as customers for long periods of time.
  • Failure to successfully upgrade, integrate, and maintain the security of our information and technology networks, including personally identifiable information and other data, could materially adversely affect us.
  • Due to the ever-changing threat landscape, our products may be subject to potential vulnerabilities of wireless and IoT devices, and our services may be subject to certain risks, including hacking or other unauthorized access to control or view systems and obtain private information.
  • We depend on third-party providers and suppliers for components of our security and automation systems, third-party software licenses for our products and services, and third-party providers to transmit signals to our monitoring facilities and provide other services to our subscribers. Any failure or interruption in products or services provided by these third parties could harm our ability to operate our business.
  • An event causing a disruption in the ability of our monitoring facilities or customer care resources to operate could materially adversely affect our business.
  • Our independent, third-party authorized dealers may not be able to mitigate certain risks such as information technology breaches, data security breaches, product liability, errors and omissions, and marketing compliance.
  • We may pursue business opportunities that diverge from our current business model, which may materially adversely affect our business results.
  • We continue to integrate our acquisitions, which may divert management’s attention from our ongoing operations. We may not achieve all of the anticipated benefits, synergies, or cost savings from our acquisitions.
  • Our customer generation strategies through third parties, including our authorized dealer and affinity marketing programs, and our use of celebrities and social media influencers, and the competitive market for customer accounts may expose us to risk and affect our future profitability.
  • We face risks in acquiring and integrating customer accounts.
  • If we are unable to recruit and retain key personnel, our ability to manage our business could be materially and adversely affected.
  • The loss of or changes to our senior management could disrupt our business.
  • Adverse developments in our relationship with our employees could materially and adversely affect our business, results of operations, and financial condition.
  • If we fail to maintain effective internal control over financial reporting at a reasonable assurance level, we may not be able to accurately report our financial results, which could have a material adverse effect on our operations, investor confidence in our business and the trading prices of our securities.
  • If we fail to comply with constantly evolving laws, regulations, and industry standards addressing information and technology networks, privacy, and data security, we could face substantial penalties, liability, and reputational harm, and our business, operations, and financial condition could be materially adversely affected.
  • Infringement of our intellectual property rights could negatively affect us.
  • Allegations that we have infringed upon the intellectual property rights of third parties could negatively affect us.
  • We may be subject to class actions and other lawsuits which may harm our business and results of operations.
  • Increasing government regulation of telemarketing, email marketing, door-to-door sales, and other marketing methods may increase our costs and restrict the operation and growth of our business.
  • Our business operates in a regulated industry.
  • We could be assessed penalties for false alarms.
  • Adoption of statutes and governmental policies purporting to characterize certain of our charges as unlawful may adversely affect our business.
  • In the absence of net neutrality or similar regulation, certain providers of Internet access may block our services or charge their customers more for using our services, or government regulations relating to the Internet could change, which could materially adversely affect our revenue and growth.
  • We are exposed to greater risks of liability for employee acts or omissions or system failures than may be inherent in other businesses.
  • We may be required to make indemnification payments relating to the sale of our Canadian business to Telus Corporation.
  • We may be subject to liability for obligations of The Brink’s Company under the Coal Act or other coal-related liabilities of The Brink’s Company.
  • Our use of independent contractors for certain functions may expose us to additional risks.
  • New tariffs and other trade restrictions imposed on imports from China or other countries where our end-user equipment is manufactured, or any counter-measures taken in response, may harm our business and results of operations.
  • General economic conditions can affect our business, and we are susceptible to changes in the business economy, in the housing market, and in business and consumer discretionary income, which may inhibit our ability to grow our customer base and impact our results of operations.
  • We are subject to credit risk and other risks associated with our subscribers and dealers.
  • Goodwill and other identifiable intangible assets represent a significant portion of our total assets, and we may never realize the full value of our intangible assets.
  • We have significant deferred tax assets, and any impairments of or valuation allowances against these deferred tax assets in the future could materially adversely affect our results of operations, financial condition, and cash flows.
  • Our substantial indebtedness, which we can significantly increase, could materially adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and prevent us from making debt service payments.
  • We may not be able to generate sufficient cash to service all of our indebtedness and to fund our working capital and capital expenditures, and may be forced to take other actions to satisfy our obligations under our indebtedness that may not be successful.
  • Our debt agreements contain restrictions that limit our flexibility.
  • We have pledged a significant portion of our assets as collateral under our debt agreements. If any of the holders of our indebtedness accelerate the repayment of such indebtedness upon an event of default, there can be no assurance that we will have sufficient assets to repay our indebtedness.
  • Our variable-rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
  • Our stock price may fluctuate significantly.
  • Future sales of our common stock in the public market, or the perception in the public market that such sales may occur, could reduce our stock price.
  • We continue to be controlled by Apollo, and Apollo’s interests may conflict with our interests and the interests of other stockholders.
  • We are a “controlled company” within the meaning of the NYSE rules and, as a result, qualify for and intend to rely on exemptions from certain corporate governance requirements.
  • If we fail to establish and achieve an ESG program that is consistent with investor expectations, investors may not view us as an attractive investment which could have a negative effect on our stock price.
  • Our organizational documents may impede or discourage a takeover, which could deprive our investors of the opportunity to receive a premium on their shares.
  • Our amended and restated certificate of incorporation provides for exclusive forum provisions which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes.
  • Our amended and restated certificate of incorporation contains a provision renouncing our interest and expectancy in certain corporate opportunities.
  • We are a holding company and rely on dividends, distributions, and other payments, advances, and transfers of funds from our subsidiaries to meet our obligations.
  • Your investment in our common stock may be diluted by the future issuance of additional common stock or convertible securities in connection with our incentive plans, acquisitions or otherwise, which could adversely affect our stock price.
  • We may issue preferred securities, the terms of which could adversely affect the voting power or value of our common stock.
Management Discussion
  • (1)Refer to the “—Key Performance Indicators” section for the definitions of these key performance indicators.
  • (2)Adjusted EBITDA is a non-GAAP measure. Refer to the “—Non-GAAP Measures” section for the definition of this term and reconciliation to the most comparable GAAP measure.
  • N/A—Not applicable.
Content analysis
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Readability
H.S. junior Bad
New words: calendar, chain, disconnect, household, injunctive, lending, seasonal, seasonality, syndication, ticket, transmit, wider
Removed: civil, downturn, easing, Finally, improvement, mitigate, precautionary, slowdown, spread, unrest, utilization, widespread