INTERFACE SECURITY SYSTEMS HOLDINGS INC

CIK:0001164255|SEC Filings

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue
Services	$ 39,047	$ 33,135	$ 111,389	$ 94,107
Products	3,783	3,971	10,361	13,680
Total revenue	42,830	37,106	121,750	107,787
Costs and Expenses
Cost of services	28,116	27,472	83,374	83,676
Cost of products	2,979	3,207	7,329	12,152
General and administrative expenses	5,910	5,878	18,356	18,383
Amortization	814	1,370	3,212	4,406
Depreciation	4,770	3,548	13,881	9,960
Loss on sale of long-lived assets	225	296	970	844
Total costs and expenses	42,814	41,771	127,122	129,421
Income (loss) from operations	16	(4,665)	(5,372)	(21,634)
Interest expense	(6,302)	(6,233)	(18,771)	(18,604)
Interest income	2	0	4	1
Loss before provision for income taxes	(6,284)	(10,898)	(24,139)	(40,237)
Provision for income taxes	30	(136)	(369)	(525)
Net loss	$ (6,254)	$ (11,034)	$ (24,508)	$ (40,762)

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net loss	$ (24,508)	$ (40,762)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	13,881	9,960
Amortization	3,212	4,406
Amortization of deferred charges and debt issuance costs	1,656	1,651
Deferred income tax	418	403
Loss on sale of long-lived assets	970	844
Change in operating assets and liabilities
Accounts receivable	3,353	2,307
Inventories	2,169	4,499
Prepaid expenses and other assets	2,495	(984)
Accounts payable	(1,295)	(3,223)
Accrued expenses	(6,702)	(3,320)
Customer deposits	(79)	(744)
Deferred revenue	662	(44)
Net cash used in operating activities	(3,768)	(25,007)
Cash flows from investing activities
Capital expenditures, subscriber system assets	(20,325)	(22,167)
Capital expenditures, other	(619)	(912)
Proceeds from sale of property and equipment	0	30
Net cash used in investing activities	(20,944)	(23,049)
Cash flows from financing activities
Capital contribution	6,870	49,800
Proceeds from Revolving Credit Facility	8,500	4,000
Payments on capital leases and other obligations	(2,278)	(1,585)
Deferred charges	0	(68)
Net cash provided by financing activities	13,092	52,147
Net (decrease) increase in cash	(11,620)	4,091
Cash and cash equivalents
Beginning of period	12,096	25,833
End of period	476	29,924
Supplemental Disclosures
Cash paid for interest	22,457	22,267
Cash (refunded) paid for taxes	(176)	380
Noncash items
Capital expenditures in accounts payable and accrued expenses	392	492
Acquisition of inventory through financing arrangements	$ 0	$ 938

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 476	$ 12,096
Accounts receivable, less allowance for doubtful accounts of $1,451 and $1,441	12,649	16,002
Inventories	12,164	14,333
Prepaid expenses and other assets	3,763	4,513
Total current assets	29,052	46,944
Property and equipment, net	55,890	49,636
Intangible assets, net	15,300	18,512
Goodwill	40,463	40,463
Deferred charges	649	1,025
Other assets	4,635	6,380
Total assets	145,989	162,960
Current liabilities
Current portion of capital leases and other obligations	816	2,808
Accounts payable	13,221	14,528
Accrued expenses	11,266	18,288
Customer deposits	1,592	1,671
Deferred revenue	3,309	3,344
Total current liabilities	30,204	40,639
Long-term deferred revenue	3,807	3,110
Deferred income tax	7,915	7,497
Other obligations	1,186	979
Long-term debt	272,285	262,505
Total liabilities	315,397	314,730
Mezzanine equity
Total mezzanine equity	163,399	163,399
Stockholders' deficit
Additional paid-in-capital	128,234	121,364
Accumulated deficit	(461,077)	(436,569)
Total stockholders' deficit	(332,807)	(315,169)
Total liabilities and stockholders' deficit	145,989	162,960
Redeemable Class A Preferred Stock [Member]
Mezzanine equity
Total mezzanine equity	110,284	110,284
Redeemable Class C Preferred Stock [Member]
Mezzanine equity
Total mezzanine equity	41,154	41,154
Convertible and Redeemable Class E Preferred Stock [Member]
Mezzanine equity
Total mezzanine equity	11,961	11,961
Common Class A [Member]
Stockholders' deficit
Value of common stock	26	26
Common Class B [Member]
Stockholders' deficit
Value of common stock	$ 10	$ 10