Ascent Capital Group, Inc.

CIK:0001437106|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net revenue	$ 128,091	$ 135,013	$ 257,697	$ 268,766
Operating expenses:
Cost of services	28,536	33,047	55,300	65,748
Selling, general and administrative, including stock-based and long-term incentive compensation	29,364	34,387	61,876	71,793
Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets	49,138	53,891	98,283	108,302
Depreciation	3,123	2,871	6,281	5,492
Loss on goodwill impairment	0	214,400	0	214,400
Total operating expenses	110,161	338,596	221,740	465,735
Operating income (loss)	17,930	(203,583)	35,957	(196,969)
Other expense (income), net:
Gain on deconsolidation of subsidiaries	(685,530)	0	(685,530)	0
Restructuring and reorganization expense	34,730	0	34,730	0
Interest income	(318)	(774)	(862)	(1,255)
Interest expense	40,521	40,422	78,415	79,074
Realized and unrealized (gain) loss, net on derivative financial instruments	(969)	0	6,804	0
Refinancing expense	0	0	331	0
Other income, net	(71)	(211)	(330)	(2,276)
Total other expense (income), net	(611,637)	39,437	(566,442)	75,543
Income (loss) before income taxes	629,567	(243,020)	602,399	(272,512)
Income tax expense	666	1,347	1,337	2,693
Net income (loss)	628,901	(244,367)	601,062	(275,205)
Other comprehensive income (loss):
Unrealized holding loss on marketable securities, net	0	(823)	0	(3,900)
Unrealized gain (loss) on derivative contracts, net	(472)	5,521	(940)	19,927
Deconsolidation of subsidiaries	(6,668)	0	(6,668)	0
Total other comprehensive income (loss), net of tax	(7,140)	4,698	(7,608)	16,027
Comprehensive income (loss)	$ 621,761	$ (239,669)	$ 593,454	$ (259,178)
Basic earnings (loss) per share:
Net income (loss) (in dollars per share)	$ 50.48	$ (19.82)	$ 48.30	$ (22.35)
Diluted earnings (loss) per share:
Net income (loss) (in dollars per share)	$ 50.02	$ (19.82)	$ 47.86	$ (22.35)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ 628,901	$ 601,062	$ (275,205)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of subscriber accounts, deferred contract acquisition costs and other intangible assets	49,138	98,283	108,302
Depreciation	3,123	6,281	5,492
Stock-based and long-term incentive compensation		760	945
Deferred income tax expense		0	1,324
Amortization of debt discount and deferred debt costs		197	5,994
Gain on deconsolidation of subsidiaries	(685,530)	(685,530)	0
Restructuring and reorganization expense	34,730	34,730	0
Unrealized loss on derivative financial instruments, net	(3,196)	4,577	0
Refinancing expense	0	331	0
Bad debt expense		5,903	5,623
Loss on goodwill impairment	0	0	214,400
Other non-cash activity, net		(738)	(805)
Changes in assets and liabilities:
Trade receivables		(5,327)	(5,434)
Prepaid expenses and other assets		4,590	(2,001)
Subscriber accounts - deferred contract acquisition costs		(1,781)	(2,586)
Payables and other liabilities		34,780	7,623
Net cash provided by operating activities		98,118	63,672
Cash flows from investing activities:
Capital expenditures		(6,767)	(8,928)
Cost of subscriber accounts acquired		(61,335)	(69,695)
Deconsolidation of subsidiary cash		(11,588)	0
Purchases of marketable securities		0	(39,022)
Proceeds from sale of marketable securities		0	37,841
Net cash used in investing activities		(79,690)	(79,804)
Cash flows from financing activities:
Proceeds from long-term debt		43,100	105,300
Payments on long-term debt		(99,376)	(95,200)
Payments of restructuring and reorganization costs		(35,968)	0
Payments of refinancing costs		(2,521)	0
Value of shares withheld for share-based compensation		(11)	(144)
Net cash provided by (used in) financing activities		(94,776)	9,956
Net decrease in cash, cash equivalents and restricted cash		(76,348)	(6,176)
Cash, cash equivalents and restricted cash at beginning of period		106,110	10,465
Cash, cash equivalents and restricted cash at end of period	$ 29,762	29,762	4,289
Supplemental cash flow information:
State taxes paid, net		2,637	2,710
Interest paid		38,063	72,899
Accrued capital expenditures		$ 461	$ 616

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 29,762	$ 105,921
Restricted cash	0	189
Trade receivables, net of allowance for doubtful accounts of $0 in 2019 and $3,759 in 2018	0	13,121
Prepaid and other current assets	323	32,202
Total current assets	30,085	151,433
Property and equipment, net of accumulated depreciation of $303 in 2019 and $40,827 in 2018	3	36,549
Subscriber accounts and deferred contract acquisition costs, net of accumulated amortization of $0 in 2019 and $1,621,242 in 2018	0	1,195,463
Deferred income tax asset, net	0	783
Operating lease right-of-use asset	97
Other assets	8	29,316
Total assets	30,193	1,413,544
Current liabilities:
Accounts payable	173	12,668
Other accrued liabilities	1,924	36,006
Deferred revenue	0	13,060
Holdback liability	0	11,513
Current portion of long-term debt	0	1,895,175
Total current liabilities	2,097	1,968,422
Non-current liabilities:
Long-term holdback liability	0	1,770
Derivative financial instruments	0	6,039
Operating lease liabilities	0
Other liabilities	12	2,742
Total liabilities	2,109	1,978,973
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, $0.01 par value. Authorized 5,000,000 shares; no shares issued	0	0
Additional paid-in capital	1,425,384	1,425,325
Accumulated deficit	(1,397,425)	(1,998,487)
Accumulated other comprehensive income, net	0	7,608
Total stockholders’ equity (deficit)	28,084	(565,429)
Total liabilities and stockholders’ equity (deficit)	30,193	1,413,544
Series A Common Stock
Stockholders’ deficit:
Common stock	121	121
Series B Common Stock
Stockholders’ deficit:
Common stock	4	4
Series C Common Stock
Stockholders’ deficit:
Common stock	$ 0	$ 0