Company name:

ADT Inc

  • IPO SHARE PRICE:
    $14.00
  • IPO DATE:
    19 January 2018
  • TICKER:
    ADT
  • MAIN STOCK EXCHANGE:
    NYSE
  • CURRENT HQ LOCATION:
    1501 Yamato Road Boca Raton Florida 33431
  • FISCAL YEAR END:
    December 31
  • INCORPORATION JURISDICTION:
    DE
  • ORGANIZED AS THE FOLLOWING LEGAL TYPE:
    Corporation
  • Investor Relations Webpage:
    Coming soon!
  • TAX RATE:
    USA federal corporate nominal income tax rate is 21%

Short Description

ADT Inc

Largest US security alarm provider against burglar intrusions into private homes and business premises. In addition, ADT helps detect other adverse events on the customer premises: floods, fires, smoke, carbon monoxide, emergency medical assistance. Company utilizes sensors to detect intrusion into property and adverse events.

Upon detection of intrusion, ADT system sounds alarm in the building and company call center (called monitoring centers) attempts to verify validity of the event. If validity is confirmed , ADT calls police, fire fighters or emergency medical help.

Business model: typically, 3-year subscription contract, 2-year contract in California. ADT installs equipment for a fee and controls service via its call centers as opposed to DIY and self-monitoring approach by some of its competitors. Although, ADT has DYI offering called Blue by ADT.

Competitors: Vivint, Guardian, Comcast, Brinks Home Security (Moni), at&t, Stanley Security, Johnson Controls, Convergint Technologies, Securitas Electronic Security, Frontpoint Secuirty (DIY), SimpliSafe, Apple HomeKit, Amazon Ring, Google Nest.

Balance Sheet

Quarterly Annual
(USD in thousand)
Selected Year:
31-Dec
2020
Current Assets
Most valuable part of Current Assets is Cash and Marketable Securities which should be watched carefully; at the same time high and growing level of Accounts Receivables is very dangerous sign
6.0%
2.1% —

Accounts Receivable

1.3% —

Prepaid expenses and other current assets

1.3% —

Cash and cash equivalents

1.1% —

Inventory

0.3% —

Work-in-progress

Liquidity
Selected Year:
The most liquid asset, however, most companies don't keep much of it and invest excess cash into marketable securities such as Government bonds - in the US - Treasuries
Cash and cash equivalents 		$122,899 $363,177 $48,736 $204,998
Accounts Receivable 148,822 245,714 287,243 336,033
Work-in-progress 21,252 26,137 34,183 41,312
Inventory 85,672 89,178 104,219 174,839
Prepaid expenses and other current assets 77,241 129,811 151,102 210,212
Total current assets $455,886 $854,017 $625,483 $967,394
16.5% 4.1% 36.6% 32.5%
Selected Year:
31-Dec
2020
Non-Current Assets
Non-current assets characterize company's business: high Property, Plant, and Equipment means that company is in capital-intensive industry which typically is very cyclical (earnings fluctuate a lot); watch out for high level of Goodwill and other non-intangibles which is bad sign as they typically worth very low relative to their value shown on the balance sheet
94.0%
36.6% —

Intangible assets

32.5% —

Goodwill

16.5% —

Subscriber system assets net

4.1% —

Deferred subscriber acquisition costs net

2.3% —

Other assets non-current

2.0% —

Property and equipment net
Selected Year:
Property and equipment net 332,445 326,565 328,731 325,716
Subscriber system assets net 2,892,683 2,907,701 2,739,296 2,663,228
Deferred subscriber acquisition costs net 282,478 429,965 513,320 654,019
Intangible assets
7,856,775 7,488,194 6,669,645 5,906,690
Goodwill
5,070,586 5,081,887 4,959,658 5,236,302
Other assets non-current - - 247,519 363,587
Other non-current assets 123,967 120,279 247,519 -
Total non-current assets 16,558,934 16,354,591 15,458,169 15,149,542
Total assets $17,014,820 $17,208,608 $16,083,652 $16,116,936
3.6% 5.2% 6.1% 3.2% 58.6% 41.2%
Selected Year:
31-Dec
2020
Current Liabilities
Current Liabilities represent company's short-term dues to others. The most important part to watch for is short-term debt and accounts payables
8.0%
3.6% —

Accrued expenses and other current liabilities

2.1% —

Current portion of deferred revenue

2.0% —

Accounts payable

0.3% —

Current maturities of long-term debt
Selected Year:
Accounts payable $187,695 $221,341 $241,954 $321,595
Accrued expenses and other current liabilities 351,340 398,079 477,366 584,151
Current portion of deferred revenue 309,157 334,886 342,359 345,582
Current maturities of long-term debt 48,060 58,184 58,049 44,764
Total current liabilities $896,252 $1,012,490 $1,119,728 $1,296,092
Selected Year:
31-Dec
2020
Non-Current Liabilities
The most critical items are revolving credit facility, term loans, and then notes - any forms of debt; in addition, pay attention to items like pension liabilites and leases- hidden debt
73.1%
58.6% —

Long-term debt

6.1% —

Deferred tax liability

5.2% —

Deferred subscriber acquisition revenue

3.2% —

Other non-current liabilities
Selected Year:
Deferred subscriber acquisition revenue 368,669 544,429 673,625 832,166
Deferred tax liability 1,376,708 1,342,168 1,166,269 990,899
Mandatorily redeemable preferred securities 682,449 - - -
Long-term debt
10,121,126 9,944,112 9,634,226 9,447,780
Other non-current liabilities 136,504 140,604 305,435 510,663
Total long-term liabilities $12,685,456 $11,971,313 $11,779,555 $11,781,508
Total Liabilities $13,581,708 $12,983,803 $12,899,283 $13,077,600
Selected Year:
31-Dec
2020
Equity
It's residue that is owned by shareholders after satisfying all of the liabilities with all of the assets; the larger the amount, the better the business is
18.9%
41.2% —

Additional paid-in capital

0.0% —

Common stock

0.0% —

Common stock Class B
Selected Year:
Common stock $2 $7,669 $7,536 $7,710
Common stock Class B - - - 547
Accumulated deficit
(998,212) (1,680,432) (2,742,193) (3,491,069)
Additional paid-in capital
4,435,329 5,969,347 5,977,402 6,640,763
Accumulated other comprehensive loss (4,007) (71,779) (58,376) (118,615)
Total Equity $3,433,112 $4,224,805 $3,184,369 $3,039,336
Total Liabilities and Equity $17,014,820 $17,208,608 $16,083,652 $16,116,936