ADT Inc. Posts Lender Presentation for Repricing Transaction - Seite 2

Business Update

During the fourth quarter of 2020, the Company continued to see strong new residential customer demand, ahead of its expectations, and continued to accelerate investments in acquiring new subscribers. The Company believes this trend will continue into 2021, with strength in new customer additions and existing customer upgrades driving further subscriber acquisition expenditures. In addition, as previously disclosed, in September 2020, the Company received $450 million of gross proceeds from an equity investment in the Company by Google, and stated its intention to use these proceeds to reduce debt and fund growth investments.  In December 2020, the Company paid down $300 million aggregate principal amount of the Company’s outstanding first lien term loans under its existing credit agreement. The Company expects to continue to position itself for additional growth in future periods by making investments during 2021 in its next-generation technology platform and in the launch of a first generation ADT + Google offering in the second half of 2021.   

Non-GAAP 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 and Adjusted Free Cash Flow. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating income, cash flows, or any other measure calculated in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.

Adjusted EBITDA

We believe that the presentation of Adjusted EBITDA is appropriate to provide additional information to investors about our operating profitability adjusted for certain non-cash items, non-routine items that we do not expect to continue at the same level in the future, as well as other items that are not core to our operations. Further, we believe Adjusted EBITDA provides a meaningful measure of operating profitability because we use it for evaluating our business performance, making budgeting decisions, and comparing our performance against that of other peer companies using similar measures.