ADT 2014 Annual Report Download - page 108
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FORM 10-K
Results of Operations
(in millions, except as otherwise indicated) 2014 2013 2012
Recurring customer revenue ........................ $3,152 $ 3,041 $ 2,903
Other revenue .................................... 256 268 325
Total revenue ................................ 3,408 3,309 3,228
Operating income ................................. 659 735 722
Interest expense, net ............................... (192) (117) (92)
Other (expense) income ............................ (35) 24 —
Income tax expense ............................... (128) (221) (236)
Net income .................................. $ 304 $ 421 $ 394
Summary Cash Flow Data:
Net cash provided by operating activities .......... $1,519 $ 1,666 $ 1,493
Net cash used in investing activities .............. (1,792) (1,394) (1,096)
Net cash provided by (used in) financing activities . . . 202 (366) (231)
Key Performance Indicators:
Ending number of customers (thousands)(1)(2) ....... 6,663 6,430 6,315
Gross customer additions (thousands)(1)(2) .......... 995 1,097 1,152
Customer revenue attrition rate (percent) .......... 13.5% 13.9% 13.5%
Customer unit attrition rate (percent) .............. 13.2% 13.3% 12.9%
Average revenue per customer (dollars)(2) .......... $41.54 $ 40.80 $ 39.44
Cost to serve expenses ......................... $1,102 $ 1,001 $ 961
Gross subscriber acquisition cost expenses ......... $ 442 $ 448 $ 523
EBITDA(3) .................................. $1,644 $ 1,689 $ 1,584
FCF(3) ...................................... $ 251 $ 460 $ 406
(1) Gross customer additions for fiscal year 2013 exclude approximately 117,000 customer accounts acquired in
connection with the acquisition of Devcon Security Holdings, Inc. in August 2013. These accounts are
included in the 6.4 million ending number of customers as of September 27, 2013. Gross customer additions
for fiscal year 2014 exclude approximately 373,000 customer accounts acquired in connection with the
acquisition of Protectron in July 2014. These accounts are included in the 6.7 million ending number of
customers as of September 26, 2014.
(2) The ending number of customers, gross customer additions and average revenue per customer for fiscal
years 2012 and 2013 have been revised. See discussion under “Key Performance Measures” above for
further information.
(3) EBITDA and FCF are non-GAAP measures. Refer to the “Non-GAAP Measures” section for the definitions
thereof and a reconciliation to the most comparable GAAP measures.
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