The nation’s largest security provider posted revenue of $883 million for the quarter ended Sept. 26, up from $846 million for the same period last year.
Although its profits declined, ADT Corp. sales increased in the fourth quarter as the company’s Pulse product suite marked its millionth customer, according to earnings released Wednesday. More than 70% of new customers are choosing the Pulse security and home automation offering, the company said.
For fiscal 2014, revenue was $3.4 billion, an increase of 3% over 2013, the company said. Much of that was recurring revenue from ongoing sales of its security services, up 3.7% compared to last year. For the fourth quarter, ADT reported revenue of $883 million, an increase of 4.4% over a year ago. Profits fell to $82 million from $96 million for the same quarter in 2013.
For the fiscal year, ADT (NYSE: ADT) reported net income of $304 million or $1.66 per share compared with $421 million or $1.88 per share during the same period last year. Despite higher revenues, earnings for fiscal 2014 declined year over year primarily due to high operating expenses. Adjusted earnings for fiscal 2014 were $369 million or $2.02 per share compared with $413 million or $1.84 per share in fiscal 2013. Adjusted earnings for the reported fiscal year beat the Zacks Consensus Estimate of $1.97.
“We delivered a strong finish to the year driving another quarter of improved results, in line with our most recent guidance in creating good momentum to drive profitable growth in the year ahead,” ADT CEO Naren Gursahaney said during an earnings call with analysts.
The company closed the quarter with 6.7 million customer accounts, a 3.6% increase over last year, including accounts from Reliance Protectron, a Canadian acquisition completed this year.
Recurring monthly revenue (RMR), which made up 93% of total revenue in the quarter, was $819 million, up 5.4% compared to the same period last year. The improved RMR growth in the fourth quarter was primarily driven by an increase in ADT’s organic average revenue per customer, which rose 3.7% over last year to $42.32, and the consolidation of Reliance Protectron for eleven weeks in the quarter. Revenue attrition for the quarter improved 40 basis points sequentially and year-over-year to 13.5%, while unit attrition for residential and small business improved 30 basis points sequentially, and 10 basis points from last year, to 13.2%.
Article Published By CE Pro on CE Pro, November 13, 2014
Share this post